LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Basell AF S.C.A. — Q3 2007 Earnings Presentation
21 slides from LyondellBasell Industries NV's earnings presentation, Nov 27, 2007
Slide 1: Quarterly review – Third Quarter 2007
Basell AF S.C.A. Quarterly review – Third Quarter 2007 Conference call 27 November 2007 We are the global leader in polyolefins technology, production, and marketing 1
Slide 2: Disclaimer
Disclaimer Forward looking statements – The presentation today may include forward-looking statements as that term is defined in securities law, including but not limited to anticipated plans, litigation and environmental matters, currency effects, profitability, and other commitments or goals. Su
Slide 3: Third quarter 2007 performance review
Third quarter 2007 performance review Agenda Introduction Third quarter 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 3
Slide 4: Third quarter 2007 performance review
Third quarter 2007 performance review Agenda Introduction Third quarter 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 4
Slide 5: Basell's 2007 third quarter top highlights
Basell’s 2007 third quarter top highlights 9 World-class safety performance with a TRR of 1.7 TRR Third Quarter YTD 2007 9 Strongest third quarter 10 8.9 ever 8.0 8 7.3 9 Pro-forma EBITDA at 6.7 6 similar levels the first two quarters and 38% 4 4.1 ahead of Q3 2006 2.4 2.0 2.1 2.2 2 1.6 1.7 9 Operat
Slide 6: Third quarter 2007 performance review
Third quarter 2007 performance review Agenda Introduction Third quarter 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 6
Slide 7: The polyolefins industry in Q3 2007
The polyolefins industry in Q3 2007 Highlights Challenges 9 Market growth continues in 8 Monomer feedstock volatility Europe remained 9 Favourable supply-demand balance in Asia and North America 9 Good cracker margins in Europe 7
Slide 8: Naphtha price developments
Naphtha price developments Naphtha pricing continued to be volatile trending upwards in the second half of the quarter US$ per tonne 800 700 600 500 400 300 200 100 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- 2002 2002 2002
Slide 9: European cracker fundamentals
European cracker fundamentals Margins increased in the third quarter. Year to date margins are slightly above the average margins for all of 2006. Feedstock price development in EUR/ton Naphtha Price - €/t Ethylene Price - €/t 700 1000 Naphtha 600 900 500 800 400 700 300 600 Ethylene 200 500 Jan- Ap
Slide 10: Technology business review
Technology business review 9 Pro-forma Q3 2007 Q3 2006 YTD 2007 YTD 2006 EBITDA is ahead of the strong mln € performance of Revenue 113 136 332 317 Q3 2006 Pro-forma 9 Catalyst sales EBITDA 60 54 180 170 volumes 6% above 2006 10
Slide 11: Advanced Polyolefins business review
Advanced Polyolefins business review 9 Q3 2007 pro- Q3 2007 Q3 2006 YTD 2007 YTD 2006 forma EBITDA is 8% ahead of Q2 mln € 2006 Revenue 414 375 1,249 1,159 9 Sales volumes Pro-forma grew by 10% vs. EBITDA 42 39 142 123 Q2 2006 9 On a ytd basis sales volumes were 9% ahead of 2006 11
Slide 12: Polyolefins business review
Polyolefins business review PO Europe PO NA PO International 9 Third quarter 9 Third quarter 9 Excellent volumes volumes and volumes ahead of and spreads spreads ahead of same period last resulted in 11% same period of year. increase in third previous year quarter EBITDA 9 Year to date EBITDA compar
Slide 13: Joint venture business review
Joint venture business review Joint ventures Q3 2007 Q3 2006 YTD 2007 YTD 2006 9 Strong mln € contributions Equity Income 25 42 84 76 from joint ventures Dividends and continues with 25 24 84 28 other cash €25 million dividends received during the quarter 13
Slide 14: Summary of Basell's performance vs. Q3 2006
Summary of Basell’s performance vs. Q3 2006 2007 Pro-forma YTD EBITDA result is 45% ahead of last year LTM pro-forma EBITDA of € 1.3 billion We continue to work with a strong focus on safety and our environment Technology ahead of 2006 Advanced Polyolefins continues to grow Polyolefins Europ
Slide 15: Third quarter 2007 performance review
Third quarter 2007 performance review Agenda Introduction Third quarter 2007 at a glance Industry overview and business review – Technology – Advanced Polyolefins – Polyolefins – Performance summary Financials 15
Slide 16: Quarterly Pro-forma EBITDA
Quarterly Pro-forma EBITDA Basell continues to perform strongly with a LTM pro-forma EBITDA of €1,323 million Quarterly pro-forma EBIDTA 214 374 371 364 600 486 500 * 122 400 374 371 13 € million 300 214 200 374 364 358 100 214 0 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Reported EBITDA excluding specials 16
Slide 17: Free cash flow and working capital
Free cash flow and working capital Strong business performance and continued good working capital management and resulted in positive cash flow generation Free Cash Flow before debt service (€ in millions) Q3 2007 YTD 2007 2006 2005 EBITDA 486 1,218 1,030 766 Change in Working Capital -13 -263 -85 -
Slide 18: Basell's debt structure
Basell’s debt structure € million Total external funding Net debt to EBITDA 4,000 ratio of 1.5 3,496 1 517 3,000 120 Net debt since 509 2,140 acquisition is lower 2,000 1,100 3,122 576 by €1,133 million 211 58 1,000 1,989 1,250 934 €75 million dividend 0 361 paid in Q3 -374 -151 -1,000 Cash
Slide 19: Basell businesses in the news
Basell businesses in the news Technology – Basell grants 50th Lupotech T technology license to QAPCO for a new 250 KT per year PE plant in Qatar – Basell achieves 20 million tons milestone in Spheripol PP process with new license in Qatar for 700 KT per year to the joint venture between Qatar Petr
Slide 20: Fourth quarter 2007 current performance
Fourth quarter 2007 current performance Safety – Year to date TRR at the end of October at 1.8 Technology – Continued strong catalyst sales – Excellent progress on a number of licensing projects Advanced Polyolefins – Demand has been strong across all three product lines Polyolefins – Europe
Slide 21: Thank you
Thank you @® basell 2 Polyolefins