LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Basell AF S.C.A. — Q3 2006 Earnings Presentation
11 slides from LyondellBasell Industries NV's earnings presentation, Nov 27, 2006
Slide 1: Quarterly review – Third Quarter 2006
Basell AF S.C.A. Quarterly review – Third Quarter 2006 Conference call 27 November 2006 We are the global leader in polyolefins technology, production and marketing 1 Disclaimer Forward looking statements – The presentation today may include forward-looking statements as that term is defined in se
Slide 2: Third quarter 2006 performance review – Agenda
Third quarter 2006 performance review Agenda Introduction J. Gadbois Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 3 Third quarter 2006 performance review Agenda Introduction Industry overview and business review A.
Slide 3: The polyolefins industry in Q3 2006
The polyolefins industry in Q3 2006 Highlights Challenges 9 Favourable global supply demand 8 North American polymer margin balance continued in Asia and squeeze continued while market Europe growth was negative 9 Market growth continued in 8 Monomer and cracker feedstock Europe volatility remained
Slide 4: European cracker fundamentals
European cracker fundamentals Ethylene price increase combined with dropping naphtha prices have resulted in improved cracker margins in the latter part of the third quarter Feedstock price development in EUR/ton Naphtha Price - €/t Ethylene Price - €/t 700 1000 Naphtha Ethylene 600 900 500 800 400
Slide 5: Technology and Advanced Polyolefins business review
Technology business review 9 Year to date EBITDA is 43% ahead of 2005 9 Continued good Q3 2006 Q3 2005 YTD 2006 YTD 2005 licensing sales with mln € a further 750kta of capacity licensed Revenue (*) 88 96 264 240 during the quarter bringing the year to Pro-forma date total to 1900kta 48 37 143 (***)
Slide 6: Polyolefins and Joint venture business review
Polyolefins business review PO Europe PO NA PO International 9 Quarterly volumes 8 Spreads and volume 9 Good start in Australia continue to be under following Geelong in line with 2005 pressure expansion 9 Continued good 9 Capital redeployment polymer spreads progressing to plan and improving cracke
Slide 7: Summary of Basell's performance compared to Q3 2005
Summary of Basell’s performance compare to Q3 2005 Basell’s year to date EBITDA result is 34% ahead of 2005 Basell established a new quarterly EBITDA record Technology significantly ahead APO performed much better with organisational changes delivering improved results PO EU delivered good spr
Slide 8: Pro-forma EBITDA
Pro-forma EBITDA Continued level of higher performance LTM is €950 million 300 252 255 256 225 214 200 168 153 153 154 136 121 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2004 2004 2004 2005 2005 2005 2005 2006 2006 2006 EBITDA OBS adjustments Note: results exclude gain on asset sales, property dama
Slide 9: Pro-forma free cash flow and Basell's debt structure
Pro-forma free cash flow and working capital Good working capital management resulted in positive cash flow generation Free Cash Flow before debt service (€ in millions) Q1 -Q3 Q1 - Q3 2004 2005 Q3 2006 Q3 2005 2006 2005 EBITDA 597 766 315 44 816 447 Change in Working Capital -67 -118 92 256 -180 -1
Slide 10: Basell's businesses in the news; Fourth quarter 2006 current performance
Basell’s businesses in the news Technology – Spherilene S commercial demonstration plant to be built in Wesseling – Completed catalyst plant expansion in Ferrara Italy – Spherizone process licenses sold in Russia and China Polyolefins – Restructuring implemented and expansion project announced f
Slide 11: Thank you
Thank you @ basell Polyolefins 11