LyondellBasell Industries NV · NYSE:LYB

LyondellBasell Industries NV — Q4 2018 Earnings Presentation

19 slides from LyondellBasell Industries NV's earnings presentation, Feb 1, 2019

  1. Slide 1: Fourth Quarter 2018 Earnings

    Fourth Quarter 2018 Earnings February 1, 2019 www.lyondellbasell.com

  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 presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed t

  3. Slide 3: LyondellBasell in 2018

    LyondellBasell in 2018 Delivering Advancing Capturing Results Growth Opportunity $ 4.7 billion Completed acquisition of Capturing margin Net Income A. Schulman from improved markets and contracting in I&D $ 6.9 billion Premium Polyolefin EBITDA Recycling JV with Suez Creating value from innovation b

  4. Slide 4: 2018 Was the Safest Year in LyondellBasell's History

    2018 Was the Safest Year in LyondellBasell’s History LyondellBasell Safety Injuries per 200,000 Hours Worked 0.80 0.70 ACC Average 0.60 0.50 0.40 0.30 0.23 0.22 0.21 0.21 0.18 0.20 0.10 2014 2015 2016 2017 2018 Geelong, Australia Source: American Chemistry Council (ACC), LYB. ACC data includes all a

  5. Slide 5: Continued Annual Earnings Stability Under Diverse Market Conditions

    Continued Annual Earnings Stability Under Diverse Market Conditions LyondellBasell Profitability Diluted Earnings Per Share(1) EBITDA EBITDA EPS Tax Benefit Tax Benefits USD, millions USD per share $10,000 $20 $5.00 8,000 16 4.00 6,000 12 3.00 4,000 8 2.00 2,000 4 1.00 0.00 2016 2017 4Q18 4Q17 1Q18

  6. Slide 6: Improvements in I&D and Technology Balance our Portfolio

    Improvements in I&D and Technology Balance our Portfolio EBITDA Strong: 2017 2018 USD, millions Record I&D performance $3,000 Durable: N. American PE chain margin 2,000 Stable: Refining operations 1,000 Growing: Record Technology performance Olefins & Olefins & Intermediates Advanced Refining Techno

  7. Slide 7: Cash Generation and Deployment

    Cash Generation and Deployment Fourth Quarter 2018 USD, millions Delivering strong results: $4,000 Cash from operating activities $1.3 B Growing through investment: Progressing construction on PO/TBA 2,000 2,026 and Hyperzone HDPE 1,837 Returning value to shareholders: (1) (2) 4Q1 8 (1) Dividends &

  8. Slide 8: Cash Generation Funding Growth Investments and Shareholder Returns

    Cash Generation Funding Growth Investments and Shareholder Returns Growing through investment: ▪ $2.1 B in capex ▪ Acquired A. Schulman 2018 Cash from Operating Activities: $5.5 B Returning value to shareholders: ▪ $3.4 B in dividends & share repurchases ▪ 19.2 million shares repurchased Cash from O

  9. Slide 9: LyondellBasell 2019 Guidance

    LyondellBasell 2019 Guidance Major Planned Other Financial Capital Maintenance Metrics 2019: ~$2.8 B Total EBITDA Impact Net Cash Interest Expense ~40% Maintenance Capital ~$160-200 MM ~$400 MM ~60% Profit Generating O&P Americas Depreciation & Amortization Q1 ~ $30-40 MM ~$1.3 B 2019-2021 Average:

  10. Slide 10: Olefins and Polyolefins – Americas

    Olefins and Polyolefins – Americas Margin Shifts from Polyethylene to Olefins with Lower Feedstock Costs EBITDA 4Q18 Performance vs. 3Q18(1) USD, millions EBITDA Margin Volume $800 U.S. Olefins ▪ Ethylene price improved 600 ▪ Cost of ethylene down due to low Gulf Coast ethane 400 Polyethylene ▪ Spre

  11. Slide 11: Olefins and Polyolefins – Europe, Asia, and International

    Olefins and Polyolefins – Europe, Asia, and International Volumes and Margins Declined with Planned Maintenance EBITDA 4Q18 Performance vs. 3Q18(1) EBITDA Margin Volume USD, millions $800 EU Olefins ▪ Planned & unplanned maintenance 600 ▪ Low Rhine river level 400 Polyethylene 200 Polypropylene 4Q17

  12. Slide 12: Intermediates and Derivatives: Margin Declines with Soft Seasonal Demand

    Intermediates and Derivatives Margin Declines with Soft Seasonal Demand EBITDA 4Q18 Performance vs. 3Q18(1) USD, millions EBITDA Margin Volume $800 Propylene Oxide and Derivatives ▪ Planned maintenance 600 Intermediate Chemicals 400 ▪ Styrene margin down 2 ¢/lb 200 Oxyfuels & Related Products ▪ Soft

  13. Slide 13: Intermediates and Derivatives Business Improvement Reducing the Effects of Market Moderation

    Intermediates and Derivatives Business Improvement Reducing the Effects of Market Moderation EBITDA Delivering strong results in 2018: USD, millions Capturing strong market margins $2,500 Improved contracting strategies 2,000 Market conditions moderating: 1,500 Higher industry operating rates likely

  14. Slide 14: Advanced Polymer Solutions Industry Events Cause Automotive Market Declines

    Advanced Polymer Solutions Industry Events Cause Automotive Market Declines EBITDA 4Q18 Performance vs. 3Q18(1) USD, millions EBITDA Margin Volume $150 Compounding & Solutions ▪ Full quarter of A. Schulman 100 product lines ▪ Automotive market declines 50 Advanced Polymers ▪ Seasonal market declines

  15. Slide 15: Refining Margins Decline on Unfavorable Maya Discount and Weaker Gasoline

    Refining Margins Decline on Unfavorable Maya Discount and Weaker Gasoline EBITDA 4Q18 Performance vs. 3Q18(1) USD, millions EBITDA Margin Volume $150 Houston Refinery ▪ Maya 2-1-1 down $10.54 to $10.89 100 ▪ Crude throughput: 184 MBPD ▪ Volume down due to planned 50 maintenance -50 -100 4Q17 1Q18 2Q

  16. Slide 16: Plastics Are Indispensable but Plastic Waste Needs to be Managed

    Plastics Are Indispensable….but Plastic Waste Needs to be Managed Food packaged with plastic lasts longer, reducing UN sustainable development goals food waste Alternatives to plastics Plastics enable life-saving medical devices generally have higher environmental and Plastic pipes facilitate clean

  17. Slide 17: A New Global Alliance Spanning the Value Chain

    A New Global Alliance Spanning the Value Chain A new global, CEO led, cross-sector, not-for-profit organization with a clear mission to develop, accelerate & deploy solutions, catalyze public & private investment and engage communities to help end plastic waste in the environment INFRASTRUCTURE INNO

  18. Slide 18: Positive Global Outlook for 2019 Despite Market Volatility

    Positive Global Outlook for 2019 Despite Market Volatility Mont Belvieu Ethane ¢/gal North American feedstock volatility: 60 Mont Belvieu ethane has retreated with 50 volatility expected from new cracker demand 40 30 20 10 Cycle impacts softened: New industry ethylene cracker additions 2014 2015 201

  19. Slide 19: LyondellBasell 2018 Summary

    LyondellBasell 2018 Summary Summary Advancing Growth Diluted earnings per share: $12.01 Completed acquisition of A. Schulman Record annual EBITDA for I&D Evaluating further value-creating and Technology M&A Strong cash from operating Advancing Hyperzone HDPE and activities $5.5 billion for 2018 PO/T

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