LyondellBasell Industries N : Q2 2024 Presentation Slides
LYB
Second Quarter 2024 Earnings
August 2, 2024
Safety performance
LYB continues to improve its top-tier safety performance
Injuries per 200,000 hours worked
0.7
0.6
0.5
0.4
0.3
0.2
0.1
2010-2014
2015-2019
2023
2024 YTD
LyondellBasell
ACC Top Quartile
Sources: American Chemistry Council (ACC) and LyondellBasell.
Notes: Medium and large companies only. Number of hours worked includes employees and contractors.
3
Second quarter 2024 highlights
Higher volumes due to increased LYB production and improved seasonal demand
$0.9 B
$2.82
$1.6 B
$1.3 B
Net income
Diluted EPS
EBITDA
Cash from
operating activities
$0.7 B
$2.24
$1.4 B
10%
Net income
Diluted EPS
EBITDA
Return on
ex. identified items
ex. identified items
ex. identified items
Invested Capital LTM
Note: Identified items include adjustments for lower of cost or market ("LCM"), gain on sale of business, impairments and refinery exit costs. Return on invested capital means income from continuing operations,
adjusted for interest expense, net of tax and items affecting comparability between periods divided by a two-year average of invested capital adjusted for items affecting comparability.
4
Advancing our strategy
Committing to strategic growth and sustainable value creation
Our Focus Area Today
Grow and upgrade the core
Shaping our portfolio to leverage strengths, support growth, increase resiliency and drive higher returns
Build a profitable Circular & Low Carbon Solutions business
Building a leading CLCS business at scale to meet current and growing future demand for sustainable solutions
Step up performance and culture
Unlocking significant opportunities across the portfolio by reshaping culture to focus on continuous value creation
On track to realize our 2027 normalized profitability targets
5
LYB's strategic criteria to grow and upgrade the core
We are laser-focused on…
1
Leading market positions
2
Growing end markets
3
Attractive returns above cost of capital
4
Access to advantaged feedstocks and,
increasingly, circular and renewable feedstocks
5
Strategically developing Circular & Low
Carbon Solutions
Our portfolio upgrades continue at pace
1. Exiting refining no later than end of first quarter 2025
6
Strengthening LYB by reshaping our portfolio
Sharpening our focus and extending our advantage
Growing our core businesses
Value Enhancement
Program
Unlocking value
Capacity additions
Disciplined M&A
Targeting advantaged positions with
Aligned with our strategic criteria
attractive returns
Enabled by LYB's industry-leading technologies
Upgrading our core businesses
EBITDA margins:
+4%
18%
LYB
Houston
refinery
historical
closure
average
EBITDA
Historical average
margin1
EBITDA margin1
improvement
+
Ongoing and
future
portfolio
improvements
VEP
Europe asset review NATPET expansion
1. EBITDA margin is EBITDA excluding identified items divided by revenues. Amounts reflect historical average for 2013-2022.
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Creating a sustainable European footprint
Bold actions underway to strengthen future profitability
European assets within strategic review1
Location
Segment
Options for assets under review
Berre, France
O&P EAI
•
Profitability improvement
Muenchmuenster, Germany
O&P EAI
•
Alternative owners
Brindisi, Italy
O&P EAI
•
Rationalization
Tarragona, Spain
O&P EAI
Carrington, United Kingdom
O&P EAI
Maasvlakte, Netherlands
I&D
LYB selected key product capacities2
MM tons
10
9
8
7
Core European assets1
Location
Segment
Wesseling (Cologne), Germany
O&P EAI
Knapsack (Cologne), Germany
O&P EAI
Frankfurt, Germany
Technology, O&P EAI
Ferrara, Italy
Technology, O&P EAI
Moerdijk, Netherlands
O&P EAI
QCP, Belgium/Netherlands
O&P EAI
Botlek, Netherlands
I&D
Fos-sur-Mer, France
I&D
Europe remains core for LYB
6
5
4
3
2
1
0
Ethylene Propylene PE
PP
PO
Styrene
Americas
Core Europe & ROW
Under review Europe
1.
Assets fully owned except Maasvlakte (50% JV with Covestro). APS segment and all JVs within O&P EAI are excluded from the review.
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2.
ROW (rest of world) represents LYB capacity excluding the Americas and Europe. Capacities include LYB proportional share of JVs.
Resilient cash generation
Excellent cash conversion delivering strong shareholder returns despite market headwinds
Cash from operating activities
USD, billions
$8 7 6 5 4 3 2 1
2019
2020
2021
2022
2023
2Q24 LTM
Free operating cash flow
Sustaining CAPEX
$4.4 B
$2.9 B
1.8x
95%
$1.8 B
Cash from operating activities 2Q24 last 12 months
Cash and cash equivalents
June 30, 2024
Net debt to EBITDA ex. identified items June 30, 2024
Cash conversion 2Q24 last 12 months
Returned to shareholders in dividends and share repurchases 2Q24 LTM
Notes: Free operating cash flow is cash from operating activities minus sustaining (maintenance and HSE) capital expenditures. Net debt to EBITDA excluding identified items is gross debt, net of cash and cash equivalents, restricted cash and short-term investments, divided by EBITDA excluding identified items. Cash conversion equals net cash provided by operating activities
divided by EBITDA excluding LCM, gain on sale of business and impairment. LTM is "last twelve months".
9
Capital allocation
Disciplined capital allocation supporting our strategy to grow and upgrade the LYB portfolio
USD, billions $4
3
$2.9
2
$2.3
1
2Q24
Cash from
Dividends &
CAPEX
Other2
2Q24
Beginning
operating
Share
Ending
balance 1
activities
Repurchases
balance1
Delivering resilient results
Generating value for shareholders
Growing and upgrading core businesses
Maintaining strong balance sheet
1.
Beginning and ending cash balances include cash and cash equivalents, restricted cash, and liquid investments.
2.
Includes proceeds from the sale of the EO&D business and investment in the NATPET joint venture.
3.
Cash conversion equals cash provided by operating activities divided by EBITDA excluding LCM, gain on sale of business and impairment.
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Disclaimer
LyondellBasell Industries NV published this content on 02 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2024 10:59:06 UTC.