Saudi Basic Industries Corp. · TADAWUL:2010
Saudi Basic Industries — Sabic — Q3 2018 Earnings Presentation
22 slides from Saudi Basic Industries's earnings presentation, November 2018
Slide 1: Investor Presentation Q3, 2018
INVESTOR PRESENTATION Q3, 2018
Slide 2: SABIC at a Glance
Classification: General Business Use SABIC AT A GLANCE Top 3 Top 3 Largest global Chemical Brand chemical companies1 Value2 Global Headquarters Production, Distribution, Storage Facilities and Logistical Hubs 100+ A+/A1 Product Application Centers International Subsidiaries and Sales Offices Countri
Slide 3: SABIC's Growth Since Its Inception
Classification: General Business Use SABIC’S GROWTH SINCE ITS INCEPTION MORE THAN 40 YEARS OF ORGANIC AND INORGANIC GROWTH 2017 2011 / 2012 SALES Ibn Sina POM 80 USD Billion Saudi Kayan 70 CAGR 10.7% 40 2010 Yansab and Sharq 7 60 2000 2017 2007 GE Plastics 2006 50 MMT Huntsman 2002 2018 40 Petrochem
Slide 4: SABIC's 2025 Strategy - World Leader in Chemicals
Classification: General Business Use SABIC’S 2025 STRATEGY - WORLD LEADER IN CHEMICALS OUR VISION: TO BE THE PREFERRED WORLD LEADER IN CHEMICALS by delivering Chemistry that MattersTM More global…more integrated…more differentiated…ambitious growth FINANCIAL MARKET FEEDSTOCK TECHNOLOGY World class f
Slide 5: Key Highlights
INVESTOR PRESENTATION KEY HIGHLIGHTS
Slide 6: Key Highlights
Classification: General Business Use KEY HIGHLIGHTS 1. Market Leader in Multiple Products and Segments 2. Diversified Global Footprint 3. Cost Leadership and Operational Excellence 4. Strategic, Strong and Stable Alliances 5. Robust Financial Profile, Dividend and Stock Performance 6
Slide 7: Market Leader in Multiple Products and Segments
Classification: General Business Use 1. MARKET LEADER IN MULTIPLE PRODUCTS AND SEGMENTS PETROCHEMICALS AGRI-NUTRIENTS SPECIALTIES SABIC’s largest operating unit; A global leading fertilizer producer; Global offerings of innovative One of the world’s largest global petrochemicals with over 7 MMT prod
Slide 8: Diversified Global Footprint
Classification: General Business Use 2. DIVERSIFIED GLOBAL FOOTPRINT 8 Manufacturing Companies 5 Manufacturing Companies 8 Compounding Companies S P 9 Compounding Companies 3 Crackers 2 Manufacturing Companies S P 8 Compounding Companies 1 Cracker S P 8% 4% 24% 39% 9% 1% Global Headquarters Sales Pr
Slide 9: Strategic Initiatives to Drive Future Growth
Classification: General Business Use 2. STRATEGIC INITIATIVES TO DRIVE FUTURE GROWTH Specialties - 24.99% stake in Clariant AG Exploring Methanol JV to explore Coal-to- Chemicals Technology Gulf Coast Growth Ventures JV Project Oil-to-chemicals Project Developing a petrochemical Agreement with Saudi
Slide 10: World Class Operational Excellence and Sustainable Progress
Classification: General Business Use 3. WORLD CLASS OPERATIONAL EXCELLENCE AND SUSTAINABLE PROGRESS STRONG FOCUS ON OPERATIONAL EXCELLENCE Operational Excellence Supply Chain Excellence Technology Improvements • Maintain cost efficiency via global network Top 3 - SABIC was ranked one of the top • CO
Slide 11: SABIC Research and Technology
Classification: General Business Use 3. SABIC RESEARCH AND TECHNOLOGY 1 Partnerships 1 Patent on average every In Technology 18 hours RESEARCH TECHNOLOGY BUSINESS DEVELOPMENT DEVELOPMENT 2.3+ 2 21 USD Bn 2,000+ 6,200 25+ 80+ 2 2 1 2 1 Research, Development Research and Employees in research Issue pa
Slide 12: Partnerships, the Cornerstone of SABIC's Business Growth Model
Classification: General Business Use 4. PARTNERSHIPS, THE CORNERSTONE OF SABIC’S BUSINESS GROWTH MODEL PARTNERSHIP WITH BEST IN CLASS GLOBAL COMPANIES1 50% 50% 50% 80% 50% Scientific Design Kemya, Yanpet & Cos-Mar Ibn Zahr SSTPC GCGV 50% 50% 50% 50% 75% Ibn Sina SSNC SAMAC Sharq Chemtank PARTNERSHIP
Slide 13: Strategic Alignment with Government Initiatives
Classification: General Business Use 4. STRATEGIC ALIGNMENT WITH GOVERNMENT INITIATIVES SABIC’S STRATEGIC IMPORTANCE TO THE KINGDOM OF SAUDI ARABIA NOW AND IN THE FUTURE Significant contributor to the domestic GDP SABIC total exports SABIC contributed 70% owned by Public Investment Fund (KSA) = USD
Slide 14: Highest Rated Chemical Company
Classification: General Business Use 5. HIGHEST RATED CHEMICAL COMPANY1 CONSISTENTLY ONE OF THE HIGHEST RATED CHEMICAL COMPANIES IN THE WORLD Moody's S&P Fitch A1 A+ A+ A1 A+ A1 A+ A A A- A3 A- A3 A- A- BBB+ BBB BBB Baa1 BBB+ Baa2 BBB Baa2 BBB BBB- Baa2 BBB- Ba1 SABIC SABIC DSM Equate Westlake Stand
Slide 15: Strong Financial Performance
Classification: General Business Use 5. STRONG FINANCIAL PERFORMANCE1 Sales (USD Bn) ADJUSTED EBITDA (USD Bn) Adjusted EBITDA Margin (%) 39.5 38.1 39.9 11.8 12.1 34.4 11.4 11.3 29.2 9.2 33% 32% 30% 30% 30% 2 2015 2016 2017 Q3 YTD Q3 YTD 2015 2016 2017 Q3 YTD Q3 YTD 3 2017 2018 2017 2018 CASH FLOWS F
Slide 16: Strong Financial Performance: Robust Profitability Despite Commodity Prices
Classification: General Business Use 5. STRONG FINANCIAL PERFORMANCE ROBUST PROFITABILITY DESPITE FLUCTUATIONS IN COMMODITY PRICES 2,100 140 33% 30% 30% 30% 30% 2,000 120 28% 21% 1,900 16% 17% 13% 1,800 100 USD / tonne 13% 12% USD / bbl 1,700 80 Crude Oil, Brent 1,600 60 1 Polyethylene (RHS) 1,500 E
Slide 17: SABIC Dividend Historic Payout
Classification: General Business Use 5. SABIC DIVIDEND HISTORIC PAYOUT NET INCOME (USD Bn); CASH DIVIDENDS & PAYOUT Net income Cash dividends dividends payout ratio 100% 71% 67% 68% 80% 60% 88% 59% 50% 49% 51% 60% 41% 29.3 40% 24.8 25.3 23.3 22 21.5 18.8 16.5 5 16.5 17.8 18.4 15 15 15 12.6 20% 10.5
Slide 18: SABIC Stock Performance
Classification: General Business Use 5. SABIC STOCK PERFORMANCE SABIC STOCK PERFORMANCE VS S&P 5001 40% Index 35% 131.51% 30% 25% 20% 15% 113.16% 10% 5% 105.74% 0% -5% SABIC Tadawul All Share Index (TASI) S&P 500 1) Chart represents 10/31/17 – 11/4/18; asset returns include dividend reinvestment 18
Slide 19: Debt Summary
Classification: General Business Use 5. DEBT SUMMARY DEBT MATURITY PROFILE (USD Bn) BREAKDOWN OF DEBT Term Loans Currency Type 13.9 5 15 Bonds / Notes 20 % % 4.0 75 1.0 85 1.5 0.8 3.5 1.0 1.3 1.0 0.5 1.6 2.4 USD SAR EUR Bonds Term Loans Q42018 2019 2020 2021 2022 2023 2024 + Total GROSS DEBT AND CAS
Slide 20: Strong Financial Performance: Recent Financial Performance
Classification: General Business Use 5. STRONG FINANCIAL PERFORMANCE RECENT FINANCIAL PERFORMANCE YTD-Sep-’17 YTD-Sep-’18 USD Bn 2015 SOCPA 2016 IFRS 2017 IFRS %YoY %9Mo9M IFRS IFRS Sales 39.5 38.1 39.9 4.7% 29.2 34.4 17.7% Gross Profit 11.5 12.6 13.3 5.8% 10.0 12.0 20.1% Net Income 5.0 4.7 4.9 4.6%
Slide 21: Key Highlights
Classification: General Business Use KEY HIGHLIGHTS 1. Market Leader in Multiple Products and Segments 2. Diversified Global Footprint 3. Cost Leadership and Operational Excellence 4. Strategic, Strong and Stable Alliances 5. Robust Financial Profile, Dividend and Stock Performance 21
Slide 22: Thank You
THANK YOU