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Emergence Investor Presentation

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Emergence Investor Presentation

  1. 1. Investor Presentation June 18, 2010
  2. 2. Disclaimer and Notice 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 to be reasonable at the time made, and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the ability to comply with the terms of our credit facilities and other financing arrangements; the costs and availability of financing; the ability to maintain adequate liquidity; the ability to implement business strategies; availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with the U.S. and worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and potential governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments; risks of doing business outside of the U.S.; access to capital markets; and other risk factors. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in our financial reports, which are available at www.lyondellbasell.com on the Investor Relations page. This presentation makes reference to certain non-GAAP financial measures, including EBITDAR. A “non-GAAP financial measure” is a financial measure that is derived on the basis of methodologies other than in accordance with U.S. GAAP. Management believes these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. EBITDAR should not be considered as an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity. While we believe that EBITDAR is a measure commonly used by investors, EBITDAR, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. For purposes of this presentation, EBITDAR means earnings before interest, taxes, depreciation, amortization and restructuring costs. Our financial statements utilize a combination of First-In, First-Out and Last-In, First-Out inventory methods. As supplemental segment information, EBITDAR figures are prepared on a current cost basis unless otherwise stated. This presentation contains time sensitive information that is accurate only as of the time hereof. We undertake no obligation to update the information presented herein except to the extent required by law. | www.lyondellbasell.com |
  3. 3. Agenda I Company Overview II Financials III Business Segment Overview - Refining & Oxyfuels - Olefins & Polyolefins - Americas - Olefins & Polyolefins - Europe, Asia and International - Intermediates & Derivatives - Technology IV Product Position and Capacity | www.lyondellbasell.com | 3
  4. 4. Key Investment Highlights Global Scale & Diversity as World’s 3rd Largest Independent Chemical Company • $31B of revenues • 59 Plants in 18 Countries • Differentiated portfolio provides steady earnings base • Significant cyclical upside • Participation in high growth, low cost markets through JV relationships Market Leadership and Strong Asset Emergence as a Public Company Base with Cyclical Upside Potential • Goal to be NYSE listed public company • #1 in Polypropylene, Oxyfuels and by third quarter if not sooner Polyolefin Licensing • $15.2B enterprise value per midpoint of • #2 in Propylene Oxide, #3 in Plan of Reorganization valuation1 Polyethylene and #4 in Ethylene and Propylene • Potential equity holders: ~375 pre- petition first lien debt holders New Management Team & Strategy New Balanced Capital Structure • Proven management team with past • $4.4B net debt 2 merger integration experience • 29% Net Debt, 71% Equity2 • Detailed management plans for • Approximately $3.6B of liquidity2 improvement • Improved Balance Sheet Significantly Expanded Cost Savings Reduced Legacy Liabilities Program 1. Based on data from the Disclosure • Approximately $1B in fixed cost • Legal and environmental liabilities Statement dated March 2010 2. As of emergence on April 30, 2010 reductions since 2008 largely expunged during Chapter 11 | www.lyondellbasell.com | 4
  5. 5. Our Broad Product Lines And The End Markets We Serve, Combined With Our Size… Refining & Oxyfuels Olefins & Intermediates & Technology 2009 Sales Polyolefins Derivatives Technology - Americas I&D - Europe, Asia, Int’l Refining & Oxyfuels O&P EAI Gasoline Ethylene Propylene Oxide Process Licensing Diesel Propylene Styrene Monomer Catalyst Sales O&P Olefins Feed Polyethylene PG and PGE Technology Americas Oxyfuels Polypropylene Acetyls Services $ 30,828 MM Catalloy C4 chemicals New Ventures 1 2009 EBITDAR PP Compounds 1 Polybutene-1 Other Refining & Technology Oxyfuels End Uses End Uses End Uses End Uses Automotive Fuels Food Packaging Insulation Polyethylene and Aviation Fuels Textiles Home Furnishings polypropylene Heating Oil Automotive Adhesives manufacturers O&P Industrial Engine Appliances Consumer I&D Americas Lube Oils Films Products Flexible piping Coatings Aircraft Deicers O&P EAI 1 Only in Europe, Asia and International 2 Includes JV dividends and insurance proceeds LIFO / FIFO: $ 2,266 MM 2 3 Consolidated operating results are determined using the FIFO method of accounting to determine inventory cost except for certain US inventories which are determined on the LIFO method. For purposes of evaluating segment results, management review operating results determined using Supplemental Current Cost: $ 2,236 MM 2, 3 current cost. | www.lyondellbasell.com | 5
  6. 6. …Lead To Sales Into Diverse End Markets With Significant Sales Into Consumables Textiles / Other Furnishings Coatings Transportation Refining / Fuels Building & Construction Consumer Packaging Note: Company estimates based on 2008 LyondellBasell Sales using industry market splits derived from consultant data and internal estimates | www.lyondellbasell.com | 6
  7. 7. Diversified & Vertically Integrated Portfolio… Wellhead Crude NGLs Capturing value along the chain Refining Refining Fuels Olefins Olefins Crackers Olefins Aromatics Technology Olefin Oxy Propylene Ethylene Polyethylene Polypropylene Polybutene Acetyls Styrene Derivatives Fuels Oxide Oxide Second Glycols PP Glycols Level Catalloy Glycol Ethers Compounding Glycol Ethers Derivatives Butanediol Refining & Olefins & Polyolefins Olefins & Polyolefins Intermediates Technology OxyFuels Americas Europe Asia & International & Derivatives | www.lyondellbasell.com | 7
  8. 8. …With Globally Integrated Leading Product Positions Products Global Position 4 Refining & Oxyfuels Oxyfuels #1 Chemical Products Propylene Oxide #2 Ethylene #4 Propylene #4 Polymer Products Polyolefins #2 Polypropylene #1 Polyethylene #3 Polypropylene Compounds #1 Technology and R&D NA Europe Rest of World Total Polyolefin Licensing #1 Sites 1 23 19 17 59 Polypropylene Catalysts #1 Employees 2 6,120 7,750 990 14,860 Revenues (%) 3 54% 35% 11% 100% 1 As of December 31, 2009. Includes joint ventures and wholly-owned subsidiaries 2 As of December 31, 2009 3 Revenues for the year ended December 31, 2009 based on delivery location 4 Positions based on LyondellBasell wholly owned capacity and pro rata share of JV capacities as of December 31, 2009, except for Technology Bayport, TX, USA positions which are as of December 31, 2008 | www.lyondellbasell.com | 8
  9. 9. North American Footprint Michigan • Lansing Ohio • Fairport Harbor • Cincinnati Pennsylvania • Newtown Square Illinois • Morris New Jersey • Tuscola • Newark • Edison Iowa - USA • Clinton Delaware • Wilmington Texas • Carrollton Tennessee • Chocolate Bayou • Jackson • Mansfield • Houston • Mont Belvieu Georgia • Channelview • Brunswick • LaPorte • Bayport Florida • Markham • Jacksonville • Victoria • Matagorda Louisiana • Corpus Christi • Lake Charles Mexico • Altamira • Tampico (JV) POLYMERS CHEMICALS POLYMERS and CHEMICALS REFINING TECHNOLOGY | www.lyondellbasell.com | 9
  10. 10. European Footprint Polymers Chemical Monomers Netherlands (3 sites) • Botlek Chemical Intermediate • Maasvlakte Fuels • Moerdijk Technology UK (2 sites) • Carrington Germany (5 sites) • Milton Keynes • Wesseling / Knapsack • Frankfurt • Muenchmuenster • Bayreuth • Ludwigshafen France (2 sites) Poland (1 site) • Berre / Aubette • Basell Orlen JV • Fos-sur-Mer Spain (1 site) • Tarragona Italy (3 sites) • Ferrara • Brindisi • Terni Note: Each circle represents the presence of a Business at a site, irrespective of the number of plants/lines the business has at that site | www.lyondellbasell.com | 10
  11. 11. Owned Assets and JVs (Outside United States And Western Europe) 100% Ownership, Unless Otherwise Stated Chemical Monomers Polymers Chemical Intermediate Japan SunAllomer JV 50% Poland Nihon, Oxirane JV 40% Basell Orlen JV 50% South Korea (2) Polymirae JV 43% Tampico, Mexico China Indelpro JV 49% Guangzhou/Nansha Suzhou Saudi Arabia Ningbo PO JV 27% SPC JV 25% SEPC JV 25% Thailand Malaysia Al Waha JV 21% (1) HMC 29% PolyPacific JV 50% Pindamonhangaba, Brazil Australia Ensenada, Argentina Geelong Clyde PolyPacific JV 50% Note: Each circle represents the presence of a Business at a site, irrespective of the number of plants/lines the business has at that site 1. Reflects our current ownership percentage. As the joint venture pays dividends over time, we anticipate our ownership will increase to a maximum of 25%. 2. Reflects our direct (35%) and indirect ownership through SunAllomer. | www.lyondellbasell.com | 11
  12. 12. Leadership Team Jim Gallogly Chief Executive Officer Kent Potter Craig Glidden Executive Vice Executive Vice President and Chief President and Chief Financial Officer Legal Officer Massimo Covezzi Anton de Vries Kevin Brown Senior Vice President, Just Jansz Senior Vice President, Senior Vice President, Olefins & Polyolefins - Senior Vice President, Research and Refining Europe, Asia & Technology Development International Bob Patel Pat Quarles Par Singh Karen Swindler Senior Vice President, Senior Vice President, Senior Vice President, Senior Vice President, Olefins & Polyolefins - Intermediates and Manufacturing - Europe, Manufacturing - Americas Derivatives Asia & International Americas Paul Davies Sam Smolik Vice President, Vice President, Human Resources Health, Safety and Environment | www.lyondellbasell.com | 12
  13. 13. A Back To Basics Strategy • Operational excellence • Cost reduction/revenue enhancement • Capital discipline • Portfolio management • Performance culture • Technology-driven growth | www.lyondellbasell.com | 13
  14. 14. Agenda I Company Overview II Financial Overview III Business Segment Overview - Refining & Oxyfuels - Olefins & Polyolefins - Americas - Olefins & Polyolefins - Europe, Asia and International - Intermediates & Derivatives - Technology IV Product Position and Capacity | www.lyondellbasell.com | 14
  15. 15. We Have A Conservative Corporate Financial Policy • Balance sheet capitalized to deal with near-term volatility and industry downturn. Pre-funded to: – Manage crude price and working capital volatility – Cover potential operating losses – Provide a cushion against uncertainty • Strict and conservative policy with regard to cash utilization and investment policy – Free cash flow focused on internal improvements and deleveraging – Maintenance and necessary capital expenditures • Growth and M&A policy – Earn opportunity for future growth – Consider sale of non-core assets when markets improve | www.lyondellbasell.com | 15
  16. 16. We Emerge As A Broadly Traded Public Entity EQUITY • Public Company – New TopCo based in The Netherlands • Goal to be NYSE listed • $2.8 billion equity rights offering • Potential equity holders – Approximately 375 Pre-petition First Lien Debt Holders DEBT • Long-term debt – First Lien debt of $3.26 billion consisting of term loans and notes, 6-yr and 7.5-yr maturities, respectively – $3.25 billion DIP Roll-up replacement instrument • ABL/Securitization – $1.750 billion asset based revolving credit facility with a $700 million letter of credit sub-limit – €450 million European Securitization • Legacy debt – $375 million (primarily consisting of $300 million 8.1% Notes due 2027) | www.lyondellbasell.com | 16
  17. 17. Simplified Legal And Debt Organizational Structure LyondellBasell Industries N.V. Dutch (new) LyondellBasell Finance LyondellBasell Subholdings B.V. Company US Dutch (new) Pledge of 65% of stock to support 1st Lien Debt New 1st Lien Term Loans Lyondell Chemical Company LyondellBasell Industries Holdings New 1st Lien Notes (Issuer) BV 3rd Lien Roll-Up Notes Dutch Dutch US Basell Sales Lyondell- Equistar French and and Marketing Basell Other non- Basell Chemicals Basell Houston LyondellBasell Asian Company B.V. / Germany US Holding Flavors and LP (owns Finance Refining LP Acetyls, LLC Propylene Lyondell Holdings & Operating Fragrances, Basell USA Company Oxide Assets Chemie GmbH Companies LLC assets) Nederland B.V. US (new) US US US (new) Dutch Dutch German US ABL Facility $300 million 2027 Notes Euro Securitization Other German, Legend Spanish, French Guarantor or Borrower under New 1st Lien Notes companies and New 1st Lien Term Loans Borrower Stock Pledge • Organizational structure simplified to remove 90 North American entities, a 57% reduction • Initially, all of the Parent’s domestic and international subsidiaries will be restricted subsidiaries | www.lyondellbasell.com | 17
  18. 18. Solid Balance Sheet With Improving Credit Metrics Pro Forma Capitalization as of April 30, 2010 Pro Forma (4/30/2010) ABL $0 Euro Securitization 315 First Lien TL 500 First Lien Notes 2,756 Other 24 Total First Lien Debt $3,595 Third Lien Notes 3,245 Total Senior Secured Debt $6,840 Other Debt 351 Total Debt $7,191 Less: Cash (2,052) Net Debt $5,139 Liquidity as of April 30, 2010 ABL Capacity $1,750 L/C's Outstanding (300) Minimum Reserve (300) Cash On Hand 2,052 Total Liquidity $3,202 Note 1: Dollars in millions; Note 2: Cash & LC Balances assume BASF related litigation is resolved before emergence | www.lyondellbasell.com | 18
  19. 19. Rating Agency Review • Moody’s – B1 Corporate Family Rating (CFR), issued on March 15, 2010 • Ba3 on ~$3.25 billion first lien term loan and notes • B3 on $3.25 billion third lien eight year roll-up notes • Standard & Poor’s – B+ Corporate Rating, issued on May 3, 2010 • BB on the ~$3.25 billion first lien term loan and notes • B on the $3.25 billion third lien eight year roll-up notes | www.lyondellbasell.com | 19
  20. 20. LyondellBasell Is Well Positioned For The Future Net Debt / Enterprise Value 1 Bayer Celanese Corp Dow Chemical Co. 2 LyondellBasell Valero Energy Corp Tesoro Corp Huntsman Corp Braskem SA 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Sources: Bloomberg, April 2010; LyondellBasell Ratio of Net Debt / EV 1. Enterprise Value = Historical Market Cap + Preferred Equity + Minority Interest + Total Debt (ST & LT Debt) – Cash and Equivalents 2. LyondellBasell Enterprise Value as detailed in the March 2010 Disclosure Statement | www.lyondellbasell.com | 20
  21. 21. Term Debt Summary Issue/Facility: Term Loan B Senior Secured Notes Roll-Up Notes Borrower: LyondellBasell Industries Escrow LyondellBasell Industries Escrow LyondellBasell Industries Escrow Corporation, to be merged with and into Corporation, to be merged with and into Corporation, to be merged with and Lyondell Chemical Company Lyondell Chemical Company into Lyondell Chemical Company Amount: $500 MM ~$2,750 MM ~$3,250 MM (USD $2,250 MM notes; EUR €375 MM notes) Pricing: LIBOR + 400bps 8.000% 11.000% (1.50% LIBOR floor, 99 OID) Tenor: 6 years 7.5 years 8 years Optional Anytime at Par Non-call 3 years Non-call 3 years Redemption: Yr 4: par + 75% of coupon Par thereafter Yr 5: par + 50% of coupon Yr 6: par + 25% of coupon Yr 7: Par Amortization: 1% per annum None None Security: First priority lien on PP&E, 65% of stock of all direct non-U.S. Third priority lien subsidiaries of LyondellBasell Industries NV and 100% of all direct U.S. subsidiaries of LyondellBasell Industries NV; Second Lien on ABL Collateral Covenants: No Financial Covenants Standard Incurrence-based HY Standard Incurrence-based HY Covenants Covenants | www.lyondellbasell.com | 21
  22. 22. Liquidity Facilities Summary Issue/Facility: ABL Facility EURO Securitization Borrower: Lyondell Chemical Company Sellers Houston Refining LP 1) Basell Sales and Marketing Company B.V. (“BSM”); and Equistar Chemicals, LP 2) Lyondell Chemie Nederland B.V. (“LCN”) Basell USA, Inc Amount: $1,750 MM €450 million Pricing: LIBOR + 375bps Subject to grid based upon the Company’s ratings profile (1.50% LIBOR floor) Tenor: 4 years 3-years, inclusive of the 364-day Committed Term and the 2- year Term Out Feature Security: First priority lien on domestic A/R and Inventory; Second Secured by all assets of the Master Purchaser (Basell lien on PP&E Polyolefins Collections Ltd.) Covenants: Minimum Fixed Charge Coverage Ratio shall apply if Triggers on company and on the liquidity falls below set levels portfolio of receivables Borrowing Base 85% of Eligible Receivables plus lower of Total eligible receivables less reserves Definition: a) 75% of cost or b) 85% of NOLV of Eligible Inventory less Availability Reserves | www.lyondellbasell.com | 22
  23. 23. Historical Financial Overview ($ in millions) Year Ended December 31, 2008 2009 Sales Refining and Oxyfuels $18,362 $11,439 O&P - Americas 16,412 10,530 O&P - EAI 13,489 7,437 I&D 6,218 3,778 Technology 583 523 Other, including intersegment eliminations (4,358) (2,879) Total Sales $50,706 $30,828 % Growth 13.3% (39.2%) EBITDAR Total LIFO / FIFO EBITDAR $1,445 $2,266 (1) (1,950) 30 Current cost adjustment to inventory Supplemental Total Current Cost EBITDAR $3,395 $2,236 Refining and Oxyfuels 1,175 255 O&P - Americas 502 743 O&P - EAI 803 341 I&D 571 535 Technology 291 309 Other including eliminations and unallocated 53 53 Supplemental Total Current Cost EBITDAR $3,395 $2,236 % of Sales 6.7% 7.3% 1 Consolidated operating results are determined using the FIFO method of accounting to determine inventory cost except for certain U.S. inventories for which the LIFO method of accounting. For purposes of evaluating segment results, management reviews operating results determined using current cost, which approximates results using the LIFO method. LyondellBasell intends to adopt the LIFO method of accounting on a companywide basis upon emergence from bankruptcy and adoption of fresh start accounting | www.lyondellbasell.com | 23
  24. 24. Improved Balance Sheet And Liquidity Profile Debt Liquidity1 • Significantly de-levered balance sheet • Approximately $3.6 billion of opening liquidity • Approximately $18 billion reduction in debt – ~$2.8 billion of post-emergence cash – $4.4 billion of net debt as of April 30, – $1.75 billion ABL Revolver 2010 vs. approximately $25.4 billion of – €450 million securitization estimated debt absent effectiveness of Plan of Reorganization • First-lien leverage of 1.6x, 0.7x on a net basis as of April 30, 2010 Assets Equity • Since 2007, underperforming assets have • Goal to be a NYSE listed public company been rationalized • $2.8 billion rights offering secured by ~375 – 4 billion pounds of annual polymer and first-lien debt holders chemical capacity has been shut down • $15.2 billion enterprise value per midpoint of • $21.4 billion of total asset value after giving Plan of Reorganization valuation2 effect to Plan of Reorganization and application of fresh start accounting – Relative to $3.6 billion of first-lien debt 1. As of emergence on April 30, 2010 2. Based on data from the Disclosure Statement dated March 2010 | www.lyondellbasell.com | 24
  25. 25. The New LyondellBasell – Stronger And Better Positioned 2007 / 2008 2010 • Combined, not merged • New Senior Management Management & • Multiple strategies • Focused, proven strategy Strategy • Growth through acquisition • Operational Excellence / Cost Reduction / Accountability • Economic Peak • Trough, heading towards recovery Economic • Chemical Cycle Peak Environment • Rationalization required • Rationalized >4 B lbs., ~1 B lbs in process • Building Middle East position • Middle East JVs now operating • Combined, not merged • ~$1B reduction in fixed costs Assets & • Legacy legal and environmental • Legal and environmental liabilities largely Cost Structure liabilities expunged in Chapter 11 • Workforce reduction of ~3,000 employees, ~1,700 contractors • Private ownership • Public • Debt burden $20+ B • $7.2B Gross Debt, ~$4.4B Net Debt1 Corporate Structure & • $2 B Liquidity, but with pending • ~$3.6B Liquidity1 acquisitions of ~$1 B • Simplified, Tax optimized New Balance Sheet • Combined / Moderate tax • New, significantly de-levered balance sheet optimization 1. As of emergence on April 30, 2010 | www.lyondellbasell.com | 25
  26. 26. Agenda I Company Overview II Financials III Business Segment Overview - Refining & Oxyfuels - Olefins & Polyolefins - Americas - Olefins & Polyolefins - Europe, Asia and International - Intermediates & Derivatives - Technology IV Product Position and Capacity | www.lyondellbasell.com | 26
  27. 27. Overview Of Refining & Oxyfuels Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking End Markets ($ millions) 2008 2009 Revenue $18,362 $11,439 Refineries USGC, France 373 MBPD -- Fuels, Heating Oil Supplemental EBITDAR – Current Cost 1,175 255 Oxyfuels Channelview, 75 MBPD #1 (MTBE / ETBE) Fuels % Margin 6.4% 2.2% Botlek and FOS Historical Maya 2-1-1 Spreads Historical Oxyfuels Margins Maya 2-1-1 Spread NWE Ether Raw Material Margin $/bbl ¢/gal ETBE equivalent $30 120 $25 100 $20 80 $15 60 $10 40 $5 20 $0 0 2000 2002 2004 2006 2008 Jan '10 2010 2003 2004 2005 2006 2007 2008 2009 Source: Platts, LyondellBasell BioFuel Premium Blending Value 1 Includes LyondellBasell wholly owned capacity as of December 31, 2009 | www.lyondellbasell.com | 27
  28. 28. Overview Of Olefins & Polyolefins - Americas Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking 2 End Markets ($ millions) 2008 2009 Ethylene 6 Crackers 9.6 B lbs #4 Chemical Revenue $16,412 $10,530 Polypropylene 4 sites (1 JV) 4.4 B lbs #1 Transportation, 502 743 Supplemental EBITDAR – Current Cost Packaging % Margin 3.1% 7.1% Polyethylene 6 sites 5.8 B lbs #3 Plastics, Consumer North American Olefins Operating Rate Historical Olefins Cash Margins Operating Rate, % 3 Margin, ¢ per lb 100% 16 12 90% 8 80% 4 70% 0 2000 2002 2004 2006 2008 2010 2012 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: LyondellBasell LyondellBasell Actuals LyondellBasell Industry View 1 Includes LyondellBasell wholly owned capacity as of December 31, 2009 2 Includes Olefins and Polymers – EAI segment 3 Operating rate on a nameplate basis | www.lyondellbasell.com | 28
  29. 29. Overview Of Olefins & Polyolefins - EAI Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking 2 End Markets Ethylene 5 Crackers 6.4 B lbs #4 Chemical ($ millions) 2008 2009 (1 JV) Polypropylene 17 sites (7 JVs) 12.8 B lbs #1 Transportation, Revenue $13,489 $7,437 Packaging Supplemental EBITDAR – Current Cost 803 341 Polyethylene 5 sites (2 JVs) 6.8 B lbs #3 Plastics, % Margin 6.0% 4.6% Consumer PP 15 sites (3 JVs) 2.4 B lbs #1 Automotive Compounding PCMA EU Olefins Operating Rate Historical PE Chain Margin and PP Spread PE Chain PP Spread, Operating Rate, % 3 Margin, € per ton (4) € per ton 100% LyondellBasell Actuals PE Chain Margin 400 400 LyondellBasell Industry View PP Spread 300 300 90% 200 200 80% 100 100 70% 0 0 2000 2002 2004 2006 2008 2010 2012 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: LyondellBasell 1 Includes LyondellBasell wholly owned capacity as of December 31, 2009 2 Includes Olefins and Polymers – Americas segment 3 Operating rate on a nameplate basis 4 PE chain margin does not include BD business. 2001-2007 margins based on FIFO inventory accounting basis; 2008-2009 margins based on current cost inventory accounting | www.lyondellbasell.com | 29
  30. 30. Joint Ventures Represent Significant Value Joint Percent Recent Venture Country Ownership Activity SEPC Saudi Arabia 25% Start-up in 2008/2009 Al-Waha Saudi Arabia 21% Start-up in 2009 Expanded PP production in SPC Saudi Arabia 25% 2009 Expanded Propylene and PP HMC Thailand 29% in 2010 Basell Orlen Polyolefins Poland 50% - Indelpro Mexico 49% Expanded in 2008 SunAllomer Japan 50% - Polymirae South Korea 43% - Australia/ Polypacific 50% - Malaysia • Joint ventures allow the Company to participate in higher growth regions of the world without the significant capital expense of constructing wholly owned facilities • 16 significant manufacturing joint ventures in 11 countries – Most ventures are in key geographic locations that have cost advantaged feedstock or higher growth rates, including Asia, the Middle East, and Eastern Europe • The Company received $272 million of cash dividends from joint ventures during 2007-2009 | www.lyondellbasell.com | 30
  31. 31. Overview Of Intermediates & Derivatives Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking End Markets ($ millions) 2008 2009 Propylene 9 PO Units 4.6 B lbs PO #2 Chemical, Oxide Plastics Revenue $6,218 $3,778 Supplemental EBITDAR – Current Cost 571 535 Acetyls 1 Acetic Acid 1.2 B lbs AA, #2 (U.S.) Paints, Unit Adhesives, % Margin 9.2% 14.2% 1 VAM Unit 0.7 B lbs VAM #4 Textiles PO Operating Rates Resilient PO Operating Margins Variable Margin 100% 150% PO Chain Variable Margin 90% 2 Operating Rate, % (2008 = 100%) 100% 80% 50% 70% 60% 0% 2002 2004 2006 2008 2010 2012 2014 2002 2004 2006 2007 2009 Source: LyondellBasell internal data LyondellBasell Actuals LyondellBasell Industry View 1 Includes LyondellBasell wholly owned capacity as of December 31, 2009 2 Operating rate on an effective basis | www.lyondellbasell.com | 31
  32. 32. Overview Of Technology Product Position and Footprint Financial Snapshot Product Share of global licensed capacity since 2003 ($ millions) 2008 2009 PP 43% Revenue $583 $523 PE 35% Supplemental EBITDAR – Current Cost 291 309 % Margin 49.9% 59.1% Polymer Production Will Drive Catalyst Sales Construction Drives Licensing Industry Capacity Additions (mm lbs) PE Production 225,000 PP PE PP Production 40,000 200,000 175,000 30,000 Million Pounds 150,000 125,000 100,000 20,000 75,000 50,000 10,000 25,000 0 0 2001 2003 2005 2007 2009 2011 2013 2001 2003 2005 2007 2009 2011 2013 Source: LyondellBasell internal data, CMAI | www.lyondellbasell.com | 32
  33. 33. Our Size Provides Considerable Leverage To Recovery Pre-Tax Impact on EBITDA, $ millions/yr Chemicals Impact of 1¢/lb Change Polymers Impact of 1¢/lb Change $120 $140 $100 $120 $100 $80 $80 ROW $60 ROW $60 $40 $40 U.S. $20 $20 U.S. $0 $0 U.S. Olefins EU Olefins Propylene Oxide Polypropylene Polyethylene PP Compounding Refining Impact of $1/bbl Change and Oxyfuels Impact of 10¢/gal $160 $140 $120 ROW $100 $80 $60 U.S. Wholly Owned Contribution $40 Proportional JV Contribution $20 $0 Refining Oxyfuels Note: Based on capacities as of December 31, 2009 | www.lyondellbasell.com | 33
  34. 34. Realization of Significant Cost Savings 2009 Cash Fixed Cost: $1 B Savings versus 2008 Sources of Savings $5,000 Headcount Target Realized To- Reduction 1 Date 2 $4,500 Employees 3,015 2,369 Contractors 1,782 1,650 Compensation 2009 Plan $2,312 MM 2009 Act. $1,906 MM $4,000 Travel 2009 Plan $98 MM 2009 Act. $30 MM $3,500 Professional Services 2009 Plan $521 MM 2009 Act. $447 MM $3,000 2008 2009 Compen- Travel Maint/ Profes- Facilities Taxes & Sales/ Charge- 2009 Act. Plan sation EHS sional & Insurance Tolling/ outs Act. Services Equip- Other 1 2010 Target ment 2 As of December 31, 2009 | www.lyondellbasell.com | 34
  35. 35. Agenda I Company Overview II Financials III Business Segment Overview - Refining & Oxyfuels - Olefins & Polyolefins - Americas - Olefins & Polyolefins - Europe, Asia and International - Intermediates & Derivatives - Technology IV Product Position and Capacity | www.lyondellbasell.com | 35
  36. 36. Global Position By Product Position in Key Refining & Oxyfuels Products 1 4 4 US Refining MTBE ETBE Total Crude Distillation Unit World capacity: World capacity: 2 Capacity: 17,800 MBPD 399 MBPD 90 MBPD Other Valero SABIC Other ConocoPhillips LyondellBasell LyondellBasell Sinopec Neste Oil ExxonMobil Other Petrochina CEPSA Repsol Shell BP Braskem Huntsman PCK Schw edt LyondellBasell Marathon Total • Lyondell capacity: • Tightly integrated with chemicals operations – 268,000 barrels/day 3 • Significant scale advantages • Deep conversion refinery asset • Biofuels premium for ETBE • Heavy crude discounts • MTBE/ETBE capacity: 74,700 barrels/day 3 Source: EIA; Dewitt; CMAI; LyondellBasell internal data Note: Capacities as of December 31, 2009 1. Positions based on LyondellBasell wholly owned capacity and pro rata share of JV capacities 2. Thousands of barrels per day 3. LyondellBasell wholly owned capacity 4. MTBE / ETBE split based on actual production at plants where there is swing capacity between the two fuels | www.lyondellbasell.com | 36
  37. 37. Global Position By Product 1 Position in Key Chemical Products Ethylene Propylene Propylene Propylene Oxide World capacity: World capacity: World capacity: World capacity: 293 billion pounds 192 billion pounds 192 billion pounds 18.7 billion pounds Dow SABIC SINOPEC Dow ExxonMobil ExxonMobil Shell LyondellBasell Other Other LyondellBasell Shell Total Other SINOPEC LyondellBasell CNPC Ineos Formosa Shell BASF • LyondellBasell capacity: 2 • LyondellBasell capacity: 2 • LyondellBasell capacity: 2 – 14.4 billion lbs pro rata – 8.9 billion lbs pro rata – 2.5 billion lbs pro rata – 16.0 billion lbs including 100% JV – 10.9 billion lbs including 100% JV – 4.6 billion lbs including 100% JV • North America flexibility • Economic flexibility through 5 • Leading technology • Saudi JV production processes Source: CMAI; LyondellBasell internal data Note: Capacities are as of December 31, 2009. 1 Positions based on LyondellBasell wholly owned capacity and pro rata share of JV capacities 2 Pro rata capacity includes LyondellBasell wholly owned capacity and pro rata share of JV capacities. 100% basis includes LyondellBasell wholly owned capacity and 100% of JV capacities | www.lyondellbasell.com | 37
  38. 38. Global Position By Product 1 Position in Key Polymer Products Polypropylene Polyethylene PP Compounding World capacity: World capacity: World capacity: 121 billion pounds 184 billion pounds 12 billion pounds LyondellBasell LyondellBasell SINOPEC Dow Total Other ExxonMobil Other Other SABIC Mitsui LyondellBasell Reliance SABIC Exxon Mitsubishi Sinopec Formosa Chevron HEP Borealis CNPC Ineos Phillips Ineos Borealis Sumitomo NPC Kingfa Wash. Penn • LyondellBasell capacity: 2 • LyondellBasell capacity: 2 • LyondellBasell capacity: 2 – 12.1 billion lbs pro rata – 10.9 billion lbs pro rata – 2.3 billion lbs pro rata – 17.2 billion lbs incl 100% JV – 12.7 billion lbs incl 100% JV – 2.4 billion lbs incl 100% JV • Leading technology • Technology strength • Specification products/ proprietary • Saudi JVs • Saudi JVs technology Source: CMAI, LyondellBasell internal data Note: Competitor capacities as of December 31, 2009 1 Positions based on LyondellBasell wholly owned capacity and pro rata share of JV capacities 2 Pro rata capacity includes LyondellBasell wholly owned capacity and pro rata share of JV capacities. 100% basis includes LyondellBasell wholly owned capacity and 100% of JV capacities | www.lyondellbasell.com | 38
  39. 39. Global Position By Product Position in Polyolefins Technology & Catalyst PP Licensing PE Licensing PP Catalyst World Capacity World Capacity World Capacity 121 billion pounds 184 billion pounds 3.3 million pounds LyondellBasell Univation (4) Others** Mitsui LyondellBasell LyondellBasell LBI Sinopec Other Other Toho CP Chem JPP Dow Mitsui Ineos Dow (3) Mitsui Dow BASF* NTH Ineos • Number 1 licensor since 2003 with more than 20 million tons of PE & PP capacity licensed globally • 43% of PP and 35% of PE global licensed capacity since 2003 uses LyondellBasell technologies • Proven processes with competitive capital and operating costs Source: LyondellBasell internal data as of 2008; CMAI; Chemical Market Resources, Inc., 2008 1 Installed capacity share 2 Based on market share for Ziegler-Natta PP Catalyst 3 Includes Lynx and PTK 4 Includes Sud-Chemie, Grace, XY Chemicals, and others | www.lyondellbasell.com | 39

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