LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Investor Presentation (June 2010)
44 slides from LyondellBasell Industries NV's investor presentation, Jun 18, 2010
Slide 1: Investor Presentation June 18, 2010
Investor Presentation June 18, 2010
Slide 2: Disclaimer and Notice
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 r
Slide 3: Agenda
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
Slide 4: Key Investment Highlights
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 rel
Slide 5: Our Broad Product Lines And The End Markets We Serve
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 Lice
Slide 6: Sales Into Diverse End Markets With Significant Sales Into Consumables
…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 consul
Slide 7: Diversified & Vertically Integrated Portfolio
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 Gl
Slide 8: Globally Integrated Leading Product Positions
…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 o
Slide 9: North American Footprint
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 Belv
Slide 10: European Footprint
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) Polan
Slide 11: Owned Assets and JVs
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% Gua
Slide 12: Leadership Team
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 Preside
Slide 13: A Back To Basics Strategy
A Back To Basics Strategy • Operational excellence • Cost reduction/revenue enhancement • Capital discipline • Portfolio management • Performance culture • Technology-driven growth | www.lyondellbasell.com | 13
Slide 14: Agenda
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
Slide 15: We Have A Conservative Corporate Financial Policy
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 conservati
Slide 16: We Emerge As A Broadly Traded Public Entity
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
Slide 17: Simplified Legal And Debt Organizational Structure
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 Hold
Slide 18: Solid Balance Sheet With Improving Credit Metrics
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 T
Slide 19: Rating Agency Review
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 fir
Slide 20: LyondellBasell Is Well Positioned For The Future
LyondellBasell Is Well Positioned For The Future Net Debt / Enterprise Value 1 Bayer Celanese Corp Dow Chemical Co. LyondellBasell 2 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 /
Slide 21: Term Debt Summary
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
Slide 22: Liquidity Facilities Summary
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: $1,750 MM €45
Slide 23: Historical Financial Overview
Historical Financial Overview ($ 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 %
Slide 24: Improved Balance Sheet And Liquidity Profile
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, – $1.75 billion ABL
Slide 25: The New LyondellBasell – Stronger And Better Positioned
The New LyondellBasell – Stronger And Better Positioned 2007 / 2008 2010 • Combined, not merged • New Senior Management Management & • Multiple strategies • Focused, proven strategy Strategy • Growth through acquisition • Operational Excellence / Cost Reduction / Accountability • Economic Peak • Tro
Slide 26: Agenda
Agenda I Company Overview II Financials III Business Segment Overview - Refining & Oxyfuels - Olefins & Polyolefins - Americas - Olefins & Polyolefins - Europe, Asia and International - Intermediates & Derivatives - Technology IV Product Position and Capacity | www.lyondellbasell.com | 26
Slide 27: Overview Of Refining & Oxyfuels
Overview Of Refining & Oxyfuels Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking End Markets ($ millions) 2008 2009 Revenue $18,362 $11,439 Refineries USGC, France 373 MBPD -- Fuels, Heating Oil Supplemental EBITDAR – Current Cost 1,175 255 Oxyfuels Chan
Slide 28: Overview Of Olefins & Polyolefins - Americas
Overview Of Olefins & Polyolefins - Americas Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking 2 End Markets ($ millions) 2008 2009 Ethylene 6 Crackers 9.6 B lbs #4 Chemical Revenue $16,412 $10,530 Polypropylene 4 sites (1 JV) 4.4 B lbs #1 Transportation,
Slide 29: Overview Of Olefins & Polyolefins - EAI
Overview Of Olefins & Polyolefins - EAI Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking 2 End Markets Ethylene 5 Crackers 6.4 B lbs #4 Chemical ($ millions) 2008 2009 (1 JV) Polypropylene 17 sites (7 JVs) 12.8 B lbs #1 Transportation, Revenue $13,489 $7
Slide 30: Joint Ventures Represent Significant Value
Joint Ventures Represent Significant Value Joint Percent Recent Venture Country Ownership Activity SEPC Saudi Arabia 25% Start-up in 2008/2009 Al-Waha Saudi Arabia 21% Start-up in 2009 Expanded PP production in SPC Saudi Arabia 25% 2009 Expanded Propylene and PP HMC Thailand 29% in 2010 Basell Orlen
Slide 31: Overview Of Intermediates & Derivatives
Overview Of Intermediates & Derivatives Product Position and Footprint Financial Snapshot Product Facilities Capacity 1 Global Ranking End Markets ($ millions) 2008 2009 Propylene 9 PO Units 4.6 B lbs PO #2 Chemical, Oxide Plastics Revenue $6,218 $3,778 Supplemental EBITDAR – Current Cost 571 535 Ac
Slide 32: Overview Of Technology
Overview Of Technology Product Position and Footprint Financial Snapshot Product Share of global licensed capacity since 2003 ($ 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 Construct
Slide 33: Our Size Provides Considerable Leverage To Recovery
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 Polyethy
Slide 34: Realization of Significant Cost Savings
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 2
Slide 35: Agenda
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
Slide 36: Global Position By Product
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 ExxonMobi
Slide 37: Global Position By Product
Global Position By Product 1 Position in Key Chemical Products Ethylene Propylene Propylene Propylene Oxide World capacity: World World capacity: capacity: World capacity: 293 billion pounds 192 192 billion billion pounds pounds 18.7 billion pounds Dow SABIC SINOPEC Dow ExxonMobil ExxonMobil Shell L
Slide 38: Global Position By Product
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 Ly
Slide 39: Global Position By Product
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
Slide 40: Key Product Capacities - Refining and Oxyfuels
Key Product Capacities - Refining and Oxyfuels Capacity 1 Site: (MBPD) Refining Houston, TX, USA 268 Berre, France 105 373 MTBE / ETBE Channelview, TX, USA 46 Fos-Ser-Mer, France 15 Botlek, The Netherlands 14 75 1 Capacity based on LyondellBasell wholly owned capacity and 100% of JV capacity Source:
Slide 41: Key Product Capacities - Olefins
Key Product Capacities - Olefins Ownership Capacity 2 Ownership Capacity 2 Site: 1 Site: 1 Share (B lbs) Share (B lbs) Ethylene Channelview, TX, USA 3.9 Propylene Channelview, TX, USA 3.4 Clinton, IL, USA 0.2 Clinton, IL, USA 1.1 Corpus Christi, TX, USA 0.7 Corpus Christi, TX, USA 1.7 Houston, TX, U
Slide 42: Key Product Capacities - Polyolefins
Key Product Capacities - Polyolefins Ownership Capacity 2 Ownership Capacity 2 Site: Site: Share 1 (B lbs) Share 1 (B lbs) PE Chocolate Bayou, TX, USA 0.5 PP Bayport, TX, USA 1.6 Clinton, IL, USA 1.0 Lake Charles, TX, USA 1.0 La Porte, TX, USA 0.9 Altamira, Mexico 49% 1.3 Matagorda, TX, USA 1.7 Ense
Slide 43: Agenda
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 IV Appendix | www.lyondellbasell.com | 4
Slide 44: EBITDAR Reconciliation to Net Income
EBITDAR Reconciliation to Net Income LyondellBasell Industries AF S.C.A. (formerly Basell AF) Year Ended December 31, Dollars in Millions 2008 2009 Net (loss) $ (7,321) $ (2,865) Add: Depreciation and amortization (1,911) (1,774) Impairment charges (5,207) (17) Accounts receivable facility fees (44)
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