LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q3 2018 Earnings Presentation
18 slides from LyondellBasell Industries NV's earnings presentation, Oct 30, 2018
Slide 1: Third Quarter 2018 Earnings
Third Quarter 2018 Earnings October 30, 2018 www.lyondellbasell.com
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
Slide 3: Third Quarter 2018 Highlights
Third Quarter 2018 Highlights Financial Highlights Delivering strong results (1) ($ in millions, except per share data) 3Q17 2Q18 3Q18 ▪ Diluted EPS: $2.85 EBITDA $1,821 $2,010 $1,732 ▪ Quarterly EBITDA: $1.7 billion Net Income $1,056 $1,654 $1,113 Diluted Earnings ($ / share) $2.67 $4.22 $2.85 Grow
Slide 4: Demonstrating Continuous Improvement in Safety Performance
Demonstrating Continuous Improvement in Safety Performance Safety - Injuries per 200,000 Hours Worked LyondellBasell ACC Average 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 Houston Refinery 2014 2015 2016 2017 2018 (3Q YTD) Source: American Chemistry Council (ACC), LYB. ACC data includes all available p
Slide 5: Advanced Polymer Solutions: Creating a New Platform for Growth
Advanced Polymer Solutions: Creating a New Platform for Growth 2017 Sales Volume(1) 2017 EBITDA(2) A. Schulman PE + PP PPC Catalloy & Catalloy & PB-1 PB-1 A. Schulman PE + PP PPC,Catalloy PPC, Catalloy& and PB-1PB-1 lbs., billions USD, billions 16 $3.0 EBITDA shift to Product shift to new segment ne
Slide 6: Advanced Polymer Solutions: A New Segment Focusing on Broad and Attractive Markets
Advanced Polymer Solutions: A New Segment Focusing on Broad and Attractive Markets Compounding & Solutions Advanced Polymers Polypropylene Masterbatch Catalloy Compounds Engineered Engineered Polybutene-1 Composites Plastics Custom Specialty Performance Powders Colors www.lyondellbasell.com 6
Slide 7: EBITDA Increasing Year-Over-Year in Four Segments
EBITDA Increasing Year-Over-Year in Four Segments 3Q17 LTM 3Q18 LTM USD, millions $3,000 Strong: I&D performance Durable: 2,000 N. American PE chain margin Stable: Refining operations 1,000 Growing: Technology licensing Olefins & Olefins & Intermediates Advanced Refining Technology Polyolefins - Pol
Slide 8: Cash Generation and Deployment
Cash Generation and Deployment Third Quarter 2018 USD, millions Delivering strong results: $6,000 Cash from operating activities $1.4 B 4,000 Growing through investment: 3,873 Completed acquisition of A. Schulman 2,000 2,026 Returning value to shareholders: Dividends & share repurchases $720 MM (1)
Slide 9: Strong Cash Generation, Dividends & Share Repurchases
Strong Cash Generation, Dividends & Share Repurchases Cash From Operating Activities Dividends & Share Repurchases USD, millions USD, millions Free Cash Flow Capex Quarterly Dividends Share Repurchases $7,000 $900 6,000 5,000 600 4,000 3,000 300 2,000 1,000 2014 2015 2016 2017 3Q18 LTM 3Q17 4Q17 1Q1
Slide 10: Olefins and Polyolefins – Americas
Olefins and Polyolefins – Americas Strong Demand Fundamentals Support Polyolefin Chain Margins EBITDA 3Q18 Performance vs. 2Q18(1) USD, millions EBITDA Margin Volume $800 U.S. Olefins ▪ Ethylene price up 4 ¢/lb 600 400 Polyethylene ▪ Spread down 6 ¢/lb 200 Polypropylene 3Q17 4Q17 1Q18 2Q18 3Q18 U.S.
Slide 11: Cracker Flexibility & Midstream Investment: Expected to Reduce Ethane Price Volatility by 2020
Cracker Flexibility & Midstream Investment: Expected to Reduce Ethane Price Volatility by 2020 Gulf Coast Ethane Demand & Supply from Fractionation Recent Mont Belvieu ethane price volatility ~ 25 - 60 ¢/gal Flexible Ethane Demand Minimum Ethane Demand Ethane Supply from Fractionation Aggravating fa
Slide 12: LyondellBasell Flexibility & Business Portfolio Reduces Ethane Impacts
LyondellBasell Flexibility & Business Portfolio Reduces Ethane Impacts Advantaged N. American Cracker Fleet: LYB U.S. Gulf Coast Feedstock Flexibility(1) ▪ Gulf Coast crackers ▪ High feedstock flexibility Ethane ▪ Midwest crackers ▪ Low priced Conway feedstock Propane / Butane Naphtha Annual EBITDA
Slide 13: Olefins and Polyolefins – Europe, Asia, and International
Olefins and Polyolefins – Europe, Asia, and International Increased Feedstock Costs Compress Polymer Margins EBITDA 3Q18 Performance vs. 2Q18(1) EBITDA Margin Volume USD, millions $800 EU Olefins ▪ Planned maintenance 600 Polyethylene 400 200 Polypropylene 3Q17 4Q17 1Q18 2Q18 3Q18 EU Industry Ethyle
Slide 14: Intermediates and Derivatives
Intermediates and Derivatives Typical Seasonal Declines Moderating Attractive Margins EBITDA 3Q18 Performance vs. 2Q18(1) USD, millions EBITDA Margin Volume $800 Propylene Oxide and Derivatives ▪ Planned & unplanned maintenance 600 Intermediate Chemicals 400 ▪ Styrene margin down 4 ¢/lb 200 Oxyfuels
Slide 15: Advanced Polymer Solutions Seasonal Volume Declines in Automotive and Construction
Advanced Polymer Solutions Seasonal Volume Declines in Automotive and Construction EBITDA 3Q18 Performance vs. 2Q18(1) USD, millions EBITDA Margin Volume $150 Compounding & Solutions ▪ Seasonal decline in polypropylene 100 compounds ▪ Acquisition of A. Schulman 50 Advanced Polymers 3Q17 4Q17 1Q18 2Q
Slide 16: Refining
Refining Improved Margins from Favorable Canadian Crude Oil Pricing EBITDA 3Q18 Performance vs. 2Q18(1) USD, millions EBITDA Margin Volume $150 Houston Refinery ▪ Crude throughput: 232 MBPD ▪ Volume down due to planned 100 maintenance ▪ Maya 2-1-1 down $4.51 to $21.43 ▪ Margin improved on favorable
Slide 17: Tangible Earnings Growth Over the Next Twelve Months
Tangible Earnings Growth Over the Next Twelve Months Acquisition of Hyperzone I&D Refinery Refining A. Schulman HDPE Improvement Reliability Markets Vertical Poised to Capture Sustainable Contract Increased Focus on Well Positioned for Integration HDPE Demand Improvements Operational Excellence IMO
Slide 18: Third Quarter Summary and Outlook
Third Quarter Summary and Outlook Summary Outlook Diluted earnings per share: $2.85 Continued robust global demand Year-over-year EBITDA Stabilizing market conditions after improvement in 4 segments industry capacity comes online Strong cash from operating activities Safe and timely completion of 4Q
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