LyondellBasell Industries NV · NYSE:LYB

LyondellBasell Industries NV — Q4 2020 Earnings Presentation

20 slides from LyondellBasell Industries NV's earnings presentation, Jan 29, 2021

  1. Slide 1: Fourth Quarter 2020 Earnings

    FOURTH QUARTER 2020 EARNINGS January 29, 2021 1

  2. Slide 2: Cautionary Statement and Information Related to Financial Measures

    CAUTIONARY STATEMENT AND INFORMATION RELATED TO FINANCIAL MEASURES CAUTIONARY STATEMENT The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of manag

  3. Slide 3: Maintaining Our Commitments

    MAINTAINING OUR COMMITMENTS BUILDING A STRONGER COMPANY FOR OUR INVESTORS, CUSTOMERS AND EMPLOYEES PROTECTING EMPLOYEES Maintained a safe work environment during pandemic No company-wide workforce reductions Bolstered diversity, equity and inclusion efforts Maintained 401(k) and other benefits SAFEG

  4. Slide 4: 2020 Highlights

    2020 HIGHLIGHTS MAINTAINED STRATEGIC FOCUS WHILE NAVIGATING THE PANDEMIC AND RECESSION $1.4 B $3.3 B $4.24 $5.2 B NET INCOME EBITDA DILUTED EPS LIQUIDITY $1.9 B $3.9 B $5.61 NET INCOME EBITDA DILUTED EPS ex. LCM and Impairment ex. LCM and Impairment ex. LCM and Impairment 4

  5. Slide 5: Consistent Safety Focus

    CONSISTENT SAFETY FOCUS FACIAL COVERING IMPROVING SAFETY PERFORMANCE IN A CHALLENGING YEAR Injuries per 200,000 hours worked 0.5 0.4 0.3 SOCIAL DISTANCING 0.2 0.1 2016 2017 2018 2019 2020 LyondellBasell ACC Top Quartile HEALTH SCREENING 5 Source: American Chemistry Council (ACC) and LyondellBasell.

  6. Slide 6: Advancing Circular Plastics

    ADVANCING CIRCULAR PLASTICS QCP PARTNERSHIP EXPANDS CAPACITY AND FOOTPRINT EXPANDING LYB’S MECHANICAL RECYCLING NETWORK 2018 – Geleen, The Netherlands 2020 – Blandain, Belgium ADVANCING PRODUCT OPTIONS Expands the number of end-use applications Assists brand owners to achieve sustainability goals SU

  7. Slide 7: Strong Cash Conversion

    STRONG CASH CONVERSION DIVIDEND AND CAPITAL INVESTMENTS COVERED BY CASH FROM OPERATING ACTIVITIES 88% Change in Cash Working Capital Cash Conversion CASH CONVERSION USD, millions $100 100% 2020 0 90% -100 $3.4 B 80% CASH FROM OPERATING ACTIVITIES -200 2020 70% -300 -400 60% $1.4 B 2018 2019 2020 DIV

  8. Slide 8: Cash Generation and Deployment

    CASH GENERATION AND DEPLOYMENT ADVANCING ON OUR GROWTH STRATEGY DESPITE ECONOMIC DOWNTURN DELIVERING RESULTS USD, billions Cash from operating activities $3.4 B $6 GROWING THROUGH INVESTMENT 4 Ramped up PO/TBA activity in 4Q20 Established Bora JV in China $2.5 2 Formed Louisiana PE JV $1.1 PROVIDING

  9. Slide 9: LyondellBasell 2021 Modeling Information

    LYONDELLBASELL 2021 MODELING INFORMATION FINANCIAL Sustaining CAPEX METRICS CAPITAL Total CAPEX ~$1.0 B EXPENDITURES Profit Generating CAPEX ~$2.0 B Net Interest Expense ~$1.0 B ~$430 MM Depreciation & Amortization ~$1.4 B Pension Contribution 1Q 2Q 3Q 4Q MAJOR ~$100 MM PLANNED Pension Expense O&P -

  10. Slide 10: Recovering Markets

    RECOVERING MARKETS DIVERSE GLOBAL PORTFOLIO REFLECTING SIGNIFICANT ECONOMIC RECOVERY EBITDA ex. LCM and Impairment USD, billions $ 1.5 STRONG CONSUMER DRIVEN DEMAND Packaging and non-durable products 1.0 FURTHER INDUSTRIAL SECTOR RECOVERY Automotive and other durable products 0.5 PERSISTENTLY LOW MO

  11. Slide 11: Global Polyethylene

    GLOBAL POLYETHYLENE FUTURE OPERATING RATES LIKELY COMPARABLE TO PREVIOUS CYCLES 2016 FORECAST Effective Operating Rate ● Consultants predicted low operating rates 2017-2018 100% ●. Typical delays in new capacity maintained high operating rates Actual 95% 2020 ENVIRONMENT Balanced Market 90% ● Global

  12. Slide 12: Olefins & Polyolefins – Americas

    OLEFINS & POLYOLEFINS – AMERICAS TIGHT MARKETS DROVE MARGIN AND VOLUME IMPROVEMENTS EBITDA ex. LCM USD, millions $722 OLEFINS Higher ethylene and propylene prices driven by $523 tight supply $477 $404 Volumes increased due to higher demand $210 POLYOLEFINS Polyethylene and polypropylene spreads impr

  13. Slide 13: Olefins & Polyolefins – Europe, Asia & International

    OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL IMPROVING DEMAND AND INCREASED BORA JV CONTRIBUTION DROVE IMPROVED PROFITABILTY EBITDA ex. LCM USD, millions OLEFINS Volume increased with higher operating rates $251 Margins lower due to higher maintenance expense $225 $219 POLYOLEFINS $144 $131

  14. Slide 14: Intermediates & Derivatives

    INTERMEDIATES & DERIVATIVES EARNINGS GROWTH MUTED BY LOW OXYFUELS MARGINS EBITDA ex. LCM USD, millions $329 $281 PO & DERIVATIVES $245 Margins increased due to strong Asia demand and market $196 tightness $121 OXYFUELS & RELATED PRODUCTS Volumes improved slightly Margins decreased driven by low gaso

  15. Slide 15: Advanced Polymer Solutions

    ADVANCED POLYMER SOLUTIONS VOLUME IMPROVEMENT FROM REBOUNDING AUTOMOTIVE MANUFACTURING EBITDA ex. LCM USD, millions COMPOUNDING & SOLUTIONS $126 $115 $117 Volumes increased with improved automotive demand Margins declined on product prices lagging feedstocks $62 $23 SYNERGIES Beginning to capture >$

  16. Slide 16: Polypropylene Durable Goods

    POLYPROPYLENE DURABLE GOODS MARKETS SHOWING STRENGTH INTO FIRST QUARTER 2021 LYB CHINA LYB PPC, EP and Catalloy Sales Volume NORTH AMERICA & EUROPE Indexed to 1Q19 PP DEMAND DAYS OF PP INVENTORY HIT 100% +10% ALL-TIME LOWS 90% 2020 vs. 2019 During 4Q20 80% NORTH AMERICA CHINA 70% ROOFING DEMAND AUTO

  17. Slide 17: Refining

    REFINING LOW DEMAND FOR GASOLINE AND JET FUEL CONTINUE TO PRESSURE PROFITABILITY EBITDA ex. LCM and Impairment USD, millions $22 CRUDE THROUGHPUT $(14) 80% utilization rate matching reduced demand $(80) $(74) $(121) MARGIN IMPROVED Lower fixed cost and commercial agility Maya 2-1-1 increased by $0.2

  18. Slide 18: Technology

    TECHNOLOGY LICENSING PROFITABILTIY REDUCED DUE TO TIMING EBITDA USD, millions $138 $112 $111 LICENSING Decreased number of revenue milestones $56 CATALYST $45 Margins increased due to inventory mix Volumes decreased as customers managed inventories at year-end 4Q19 1Q20 2Q20 3Q20 4Q20 18

  19. Slide 19: Disciplined Investments Driving Growth and Value

    DISCIPLINED INVESTMENTS DRIVING GROWTH AND VALUE HIGHER EBITDA AND LOWER CAPEX: A CLEAR STRATEGY FOR INCREASING FREE CASH FLOW 2023 2022 4Q 2020 PO/TBA Sinopec PO/SM JV 4Q 2020 Louisiana Channelview, Texas Ningbo, China 3Q 2020 Advanced Integrated PE JV Bayport, Texas Estimated EBITDA 2Q 2020 Bora I

  20. Slide 20: Fourth Quarter 2020 Summary & Outlook

    FOURTH QUARTER 2020 SUMMARY & OUTLOOK COMMITTED TO DELIVERING VALUE THROUGH CYCLES COMMITMENTS MARKETS FREE CASH FLOW PATH KEPT IMPROVING GROWING FORWARD Supported employees Robust global PE/PP demand APS synergies Further deleveraging Advanced sustainability Hyperzone PE & PO/TBA Maintaining capita

LyondellBasell Industries — Q4 2020 Earnings Presentation on 6ix