LyondellBasell Industries (LYB) Goldman Sachs Industrials and Materials Conference summary

Strategic direction and portfolio updates

• Three strategic pillars: growing/upgrading core businesses, building a circular and low-carbon solutions business, and enhancing performance and culture.

• Focused on core strengths, reallocating resources away from non-core areas, and leveraging global scale for impactful moves.

• Recent actions include new Saudi JV, divestiture to INEOS, refinery shutdown, and European asset review; European strategic review is underway, and the company is exiting the refining business in 1Q25.

• Targeting 2 million tons of recycled/renewable polymers by 2030, aiming for $1 billion incremental EBITDA.

• Value Enhancement Program on track to unlock $600 million in recurring annual EBITDA by end of 2024 and $1 billion by 2025.

Circular and low-carbon solutions progress

• Construction began on first commercial-scale MoReTec advanced recycling plant in Germany, targeting hard-to-recycle plastics and aiming for over 80% yield and 50% lower carbon footprint than fossil-based feedstocks; plans for a larger Houston facility underway.

• CLCS business already selling 123,000 tons in 2023, with 55% annual volume growth over five years; positioned to meet increasing demand for sustainable solutions, supported by EU Innovation Fund grants.

• Advanced recycling technology enables capital-light expansion, improved yields, and lower emissions.

• Demand for recycled/renewable polymers exceeds supply, supporting attractive margins.

• Main challenge is securing sufficient plastic waste feedstock; strategy includes downstream sourcing and sorting.

Market conditions and financial outlook

• Industry in a prolonged downturn since 2022, but portfolio remains resilient with $4.6 billion EBITDA over past 12 months.

• North American polyethylene demand up 7% YTD; polypropylene up 3%; PE demand up 4% in 2024.

• Oxyfuels and refining segments down $900 million from 2023; refinery to close Q1 2025, releasing $500 million working capital.

• Fourth quarter 2024 EBITDA expected to be lowest since 2020, with Q1 2025 anticipated to improve.

• Despite market challenges, cash from operating activities for the last twelve months as of 3Q24 was $3.4 billion, with $2.6 billion in cash and cash equivalents and $7.3 billion in available liquidity; net debt to EBITDA stood at 1.9x as of September 30, 2024, with a 77% cash conversion rate.