LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q1 2021 Earnings Presentation
21 slides from LyondellBasell Industries NV's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Earnings
FIRST QUARTER 2021 EARNINGS April 30, 2021 1
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 of LyondellBasell wh
Slide 3: First Quarter 2021 Highlights
FIRST QUARTER 2021 HIGHLIGHTS EMERGING STRONGER AND BENEFITING FROM A RECOVERING ECONOMY $1.1 B $1.6 B $3.18 $4.8 B NET INCOME EBITDA DILUTED EPS LIQUIDITY 3
Slide 4: Safety Performance
SAFETY PERFORMANCE OUR FOCUS ON SAFETY DRIVES RELIABILITY AND PERFORMANCE Injuries per 200,000 hours worked 0.5 0.4 0.3 0.2 0.1 2017 2018 2019 2020 1Q21 LyondellBasell ACC Top Quartile 4 Source: American Chemistry Council (ACC) and LyondellBasell. Note: Number of hours worked includes employees and
Slide 5: Advancing Circular Solutions
ADVANCING CIRCULAR SOLUTIONS LYONDELLBASELL’S CIRCULEN BRAND ENABLES CUSTOMERS TO DELIVER SUSTAINABLE CONSUMER PRODUCTS Polymers made from plastic waste through a mechanical recycling process Polymers made by converting plastic waste into feedstock to produce new polymers using a molecular recycling
Slide 6: Advancing Sustainable Packaging
ADVANCING SUSTAINABLE PACKAGING HYPERZONE HDPE ENABLES CUSTOMERS TO INCREASE UTILIZATION OF POST-CONSUMER RECYCLED (PCR) PLASTICS CRACK RESISTANCE HYPERZONE HDPE 565% HYPERZONE HDPE WITH 25% PCR 170% STANDARD HDPE 100% Hyperzone HDPE blended with PCR maintained the crack resistance, top load strengt
Slide 7: Emerging Stronger
EMERGING STRONGER MACRO TRENDS BENEFITING LYONDELLBASELL’S BUSINESS OUTLOOK North American Market Trends Indexed to 2019 NON-DURABLE GOODS 140% U.S. CPG demand remains elevated at 7% 120% 1Q21 vs. 1Q19 100% 80% DURABLE GOODS 60% Vehicle production recovered in 3Q20 and experienced supply chain inter
Slide 8: Increasing Global Polymer Demand
INCREASING GLOBAL POLYMER DEMAND STRONG CONSUMER TRENDS AND A REOPENING SOCIETY LEADING TO TIGHT MARKETS PE & PP Demand Growth 1Q21 vs. 1Q19 23% GROWING DEMAND Asia PE demand growth highly dependent upon imports CONSTRAINED SUPPLY 14% Tight North American market impacted by Texas weather events REBO
Slide 9: Improving Cycle Outlook
IMPROVING CYCLE OUTLOOK ONE YEAR OF RECOVERY-DRIVEN DEMAND GROWTH MUTES EFFECT OF UPCOMING CAPACITY ADDITIONS 2016 FORECAST PE & PP Effective Operating Rate Consultants predicted low operating rates 2017-2018 100% . Typical delays in new capacity maintained high operating rates Actual 95% 2020 ENVIR
Slide 10: Strong Cash Generation
STRONG CASH GENERATION DELIVERING AND EFFICIENTLY CONVERTING EARNINGS TO CASH THROUGH BUSINESS CYCLES Cash from Operating Activities USD, billions 78% $7 CASH FROM OPERATING ACTIVITIES / EBITDA ex. LCM AND IMPAIRMENT 6 1Q21 LTM 5 4 $3.4 B 3 CASH FROM OPERATING ACTIVITIES 2 1Q21 LTM 1 2016 2017 2018
Slide 11: Cash Generation and Deployment
CASH GENERATION AND DEPLOYMENT DELEVERING OUR BALANCE SHEET AND DELIVERING VALUE USD, billions DELIVERING RESULTS $4 Cash from operating activities $0.6 B 3 IMPROVING BALANCE SHEET $2.5 2 Reduced debt $500 MM $1.8 1 PROVIDING VALUE FOR SHAREHOLDERS Dividends $352 MM Investing in long-term growth 1Q2
Slide 12: Capturing the Rebound
CAPTURING THE REBOUND DIVERSE GLOBAL BUSINESSES BENEFITING FROM TIGHT MARKETS AND ECONOMIC RECOVERY EBITDA ex. LCM and Impairment USD, billions $ 2.5 STRONG CONSUMER DRIVEN DEMAND 2.0 Packaging and non-durable products 1.5 TIGHT GLOBAL MARKETS 1.0 Polyolefin supply constrained by Texas weather event
Slide 13: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS MARGINS BENEFITING FROM TIGHT MARKETS DUE TO SUPPLY CONSTRAINTS AND STRONG DEMAND EBITDA ex. LCM USD, millions $867 OLEFINS $722 Margins increased driven by tight markets Volumes decreased due to Texas weather events $477 $404 POLYOLEFINS $210 Polyethylene margins de
Slide 14: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL MARGINS EXPANDED DRIVEN BY STRONG DEMAND EBITDA ex. LCM USD, millions $412 OLEFINS Margins increased driven by higher ethylene prices and lower fixed costs despite higher feedstock costs $251 $225 $219 POLYOLEFINS Spreads increased due to tight ma
Slide 15: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES MARGIN IMPROVEMENT FROM HIGHER PRODUCT PRICES OFFSET BY LOWER VOLUMES EBITDA ex. LCM USD, millions $281 PO & DERIVATIVES $245 Margins increased driven by tight markets $196 Volumes decreased due to Texas weather events and $182 planned maintenance $121 INTERMEDIATE CHEMIC
Slide 16: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS IMPROVING AUTOMOTIVE AND NON-DURABLE DEMAND OFFSET BY MARGIN SQUEEZE EBITDA ex. LCM USD, millions $135 COMPOUNDING & SOLUTIONS $126 $115 $117 Volumes increased with improved demand Margins decreased due to elevated feedstock costs $23 ADVANCED POLYMERS Margins and volumes
Slide 17: Refining
REFINING CRACK SPREAD IMPROVEMENTS OFFSET BY HIGH RINS COST AND LOWER VOLUMES EBITDA ex. LCM and Impairment USD, millions CRUDE THROUGHPUT 57% utilization rate due to Texas weather events $(14) $(80) $(74) $(121) $(110) MARGIN Maya 2-1-1 increased by $5.21 to $15.32 Higher RINs 1Q20 2Q20 3Q20 4Q20 V
Slide 18: Technology
TECHNOLOGY INCREASED DEMAND AND RESTOCKING FOR CATALYSTS DROVE PROFITABILITY EBITDA USD, millions LICENSING $112 $111 Slightly lower revenue $94 CATALYST $56 $45 Volumes increased as customers rebuilt inventories and demand increased in Asia and Middle East Higher margins due to inventory mix 1Q20 2
Slide 19: Summary & Outlook
SUMMARY & OUTLOOK TIGHT GLOBAL MARKETS EXPECTED TO PERSIST THROUGH 2021 STRONG CONSUMER DEMAND BUSINESS DRIVERS CUSTOMER BACKLOGS SUPPLY CONSTRAINTS Customers need our products to fulfill their current orders TIGHT INVENTORIES LOW INVENTORIES GLOBAL MARKETS Our inventories have been depleted to mini
Slide 20: Increased Earnings Power
INCREASED EARNINGS POWER LARGER ASSET BASE SET TO PROVIDE ADDITIONAL EARNINGS EBITDA ex. LCM and Impairment USD, billions 2021-2022 ADDITIONAL EARNINGS $9 vs. 2020 8 APS volume and synergies 7 6 Hyperzone HDPE volume and margin 5 China integrated cracker JV 4 Louisiana integrated polyethylene JV 3 C
Slide 21: Emerging Stronger
EMERGING STRONGER WELL POSITIONED PORTFOLIO CAPTURING VALUE AND MAXIMIZING FREE CASH FLOW LEADING ADVANTAGED CONSISTENT FINANCIAL MAXIMIZING POSITIONS STRATEGY FREE CASH FLOW Reliable, cost efficient operator Prioritizing deleveraging Strong cash conversion Focused on a strong and Commercial agility
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