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					Solid Strategy, Confident Execution
     14th Annual Smith Barney
       Chemical Conference
         December 2, 2003
           Dan F. Smith
        President and CEO
Safe Harbor Language

Statements in this presentation relating to matters that are not historical
facts are forward-looking statements. These forward-looking statements are
just predictions or expectations and are subject to risks and uncertainties.
Actual results could differ materially, based on factors including but not
limited to the cyclical nature of the chemical and refining industries;
availability, cost and volatility of raw materials and utilities; governmental
regulatory actions and political unrest; global economic conditions;
industry production capacity and operating rates; the supply/demand
balance for Lyondell's and its joint ventures' products; competitive
products and pricing pressures; access to capital markets; and
technological developments and other risk factors. For more detailed
information about the factors that could cause our actual results to differ
materially, please refer to Lyondell Chemical Company’s Annual Report on
Form 10-K for the year ended December 31, 2002, filed in March 2003, and
Lyondell’s Quarterly Report on Form 10-Q, which was filed in November
2003. Reconciliations of GAAP financial measures to non-GAAP
financial measures are provided at the end of this presentation.


                                        2
Lyondell Has Built a Balanced Portfolio

  Lyondell


                                 Growth & International Presence
                      IC&D       --   A leading global producer of PO and derivatives
                                 --   Process technology strength


                                 Cash Generation
                      LCR        --   Unique capability to refine heavy crude oils
                                 --   Contractually stable business; strong cash flow generator


                                 Commodity Leverage
                                 --   A leading North American producer of ethylene, propylene
                  Equistar
                                      and polyethylene
                                 --   Low cost position based on feedstock flexibility and scale


             ($ MM)                  2002                   Lyondell
                             Revenues EBITDA               Ownership
             IC&D             $3,262      $410               100.0%
             Equistar          5,537       256                70.5
             LCR               3,392       362                58.75
                                             3
Significant Integration Exists Among the
Operating Entities and With Our Partners




                        4
           Leading Product Positions Create Significant
           Earnings Leverage                         Pre-Tax
                                                                                         1
                                                                                                                       Leverage
                                                                                                                              1
                            Product                       Annual Capacity                            Capacity Position (∆1¢/unit)
   Intermediate Chemicals
       and Derivatives




                            Propylene Oxide2 (lbs)        3.9 billion                                 1 st in North America       $20MM
                                                                                                      2 nd in the world

                            Styrene Monomer ( lbs)        3.7 billion                                 1 st in North America       $14MM
                                                                                                      3 rd in the world

                            MTBE (bbl/day)                58,500                                      1st in North America        $ 94MM
                                                                                                      1st in the world


                            Ethylene (lbs)                11.6 billion                                2 nd in North America       $116MM
                                                                                                      5 th in the world
     Equistar




                                      3
                            Propylene (lbs)               5.0 billion                                 2 nd in North America       $50MM
                                                                                                      6 th in the world

                            Polyethylene (lbs)            5.7 billion                                 3 rd in North America       $57MM
                                                                                                      4 th in the world

1 Source: LYO capacities as of Jan 2003, CMAI
2 Includes 1.5 billion pounds that represents Bayer’s share under the PO Joint Venture and 385 million pounds or
        100% of the capacity of Nihon Oxirane
3 Does not include refinery-grade material or production from the product flexibility unit at Equistar’s Channelview
        facility.
4 Based on 1¢/gal change                                                         5
    Lyondell and Equistar Products Serve a Broad
    Mix of End Users


                                                                    Other   Bldg & Const
                    Other
                                  Bldg & Const

      Electronics
                                                      Electronics
 Textiles/
Furnishings
                                            Transportation                                 Transportation

                                                   Textiles/
                                                   Furnishings
                                        Consumer




               Packaging                                     Packaging
                                                                            Consumer


                       ETHYLENE                                  PROPYLENE OXIDE



                                                         6
 There is a Growing Consensus that the Global
 Economy is Emerging from a Difficult Period
                                  Global GDP
        (Percent change in real GDP)
    5

    4

    3

    2

    1

    0
        1986      1989    1992    1995       1998   2001   2004   2007


Source: Global Insights
                                         7
The US Economy is Beginning to Benefit from
Economic Stimulus
                                                         Δ GDP
                                                    Leads to After
             Stimulus                Change     1 Year           2 Years


 Fed Rate Reduction                  100 BP      0.6               1.7


 Real Dollar Decline                  10%        0.4               1.6


 Income Tax Reduction               1% of GDP    0.4               0.8


 Stock Price Increase                 20%        0.4               0.8


 Oil Price Decline                   $10/bbl     0.2               0.4


 * Source: Fed Reserve, Jan. 1999

                                            8
A Brief Portfolio Review


      IC&D
         – Propylene Oxide (PO) and Derivatives
         – Styrene
         – MTBE
      LCR
        – Gasoline
        – Heating oil
        – Jet fuel
      Equistar
        – Ethylene
        – Polyethylene



                                   9
The PO Industry Has Absorbed a Period of
Capacity Additions
             25.0                                                                                                                         100%


             22.5                                        Effective Operating Rate                                                         95%
                                                          (96% On Stream Time)
             20.0                                                                                                                         90%


             17.5                                                                                                                         85%

                           Demand at 4.4%




                                                                                                                                                 Operating Rate
             15.0                                                                                                                         80%
   Bln lbs




             12.5                                                                                                                         75%


             10.0                                                                                                                         70%




                                                                                       Nameplate Capacity
              7.5                                                                                                                         65%


              5.0                                                                                                                         60%


              2.5                                                                                                                         55%


              0.0                                                                                                                         50%
                    1992       1994        1996   1998     2000    2002         2004                        2006        2008       2010

                              Lyondell/Partners          Dow             Shell/BASF                                Rest of World

 Source: SRI / Lyondell
                                                                    10
 Global Styrene Supply/Demand Balances Are
 Relatively Tight
                         100                                                                              100%


                                    90                                                                    95%
                                                       92% Rate
                                    80                                                                    90%
       Capacity (Billions Pounds)




                                                                                                                 Operating Rate (%)
                                    70                                                                    85%

                                                                    Demand at 4.5% Growth
                                    60                                                                    80%


                                    50                                                                    75%


                                    40                                                                    70%


                                    30                                                                    65%


                                    20                                                                    60%
                                         1998   2000              2002              2004    2006   2008



Source: CMAI 2003 World Styrene Analysis
                                                                               11
     MTBE is a Source of Premium Clean Octane
     to the 19-20 MMB/D Global Gasoline Market
                                               2002
         600                                 CAPACITY
                          2002                                          2004 Est. Demand
                                  U.S.
                         DEMAND
         500                      Dehydro
                  CA
         400                      Dehydro
 MB/D




                                                                2002                 2002
                                  Non -US
                                                               DEMAND               SUPPLY

         300      U.S.
                                                        CA               Imports
                                  Refinery
                                  /Olefins                               U.S.
         200
                                                                         Dehydro
                  Non-
         100      U.S.                                  U.S.             Refinery
                                                                         /Olefins
                                    PO
                                                                           PO
                   Global Supply/Demand                   US Market Balance
Source : Dewitt
                                                12
                                        Premium above Gasoline (¢/gal)




     Source: Platts
                       Ju




                                  0
                                                 10
                                                      20
                                                           30
                                                                 40
                                                                       50
                          l'                                                60
                            01
                      S
                        ep
                           '0
                             1
                      N
                        ov
                           '0
                              1
                      Ja
                         n
                           '0
                              2
                      M
                        ar
                           '0
                              2
                      M
                        ay
                           '0
                              2
                       Ju
                          l'
                            02
                                                                MTBE




                      S
                        ep




13
                           '0
                             2
                      N
                        ov
                           '0
                              2
                      Ja
                         n
                           '0
                              3
                      M
                                      Alkylate



                        ar
                           '0
                              3
                      M
                        ay
                           '0
                              3
                       Ju
                                                                                 Component Premiums Above Gasoline




                          l'
                            03
                      S
                        ep
                           '0
                             3
  Steps Toward Increased IC&D Cash Flow
        $ MM/Yr
                         Potential Cash
                          Improvement
         600                   From
                         1 st Half, 2003 *



         500

         400

         300

         200

         100

       1st Half
                   Complete         Convert       1999         MTBE         Sell-out at 1995
  * 1st Half
                     PO-11           PO/SM       PO / TDI    Resolution   PO / TDI / SM Margins
  EBITDA
Annualized =      Capital Spend   Purchases on     SM
  $200MM                           Production    Margins
                                                        14
     LCR Important Cash Generator -- Operating Reliability
     and Crude Deliveries Drive Performance



                 MB/day                                                                                 $MM
                  300                              CSA       Spot Mkt       EBITDA                      140


                  250                                                                                   120

                                                                                                        100
                  200
                                                                                                        80
                  150
                                                                                                        60
                  100
                                                                                                        40

                   50                                                                                   20
                                                                  1                      2
                     0                                                                                  0
                         1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
Net Distribution
To LYO, $MM               33     (7)   16    76   20   24   59   17   2    22   49   7   67   68   55

1   4Q01: Scheduled maintenance turnaround
2   1Q03: Includes a $25MM write-off
                                                                      15
   Equistar is a Leading Ethylene Producer


                               Top 5 North America       66%

                                                         Nova
                                                          8%
      #2 in North America                           ChevronPhillips
                                                          10%

      Competitive position
                                       40%            ExxonMobil
       based on feedstock             Exxon              13%
                                        7%
       flexibility                 Union Carbide
                                        7%              Equistar
                                       Nova               15%
                                        8%

                                       Dow
                                       9%             Dow/Carbide
                                                         20%
                                       Shell
                                        9%


                                      1991              2002


Source: CMAI

                              16
     North American Supply/Demand Balance Is
     On Track To Improve Significantly
                                         Ethylene Supply/Demand Balance – North America
                                120                                                                                              100%
                                                                                                          Rest of World

                                110


                                100
                                      N. American Effective Operating Rate                                                       90%
                                                (96% On-Stream Time)


                                 90




                                                                                                                                        Operating Rate
               Billion Pounds




                                                               N. America


                                 80                                                                                              80%

                                      N. America Demand
                                 70


                                 60                                          Nameplate Capacity                                  70%


                                 50


                                 40                                                                                              60%


                                 30
                                      1994       1996           1998        2000                   2002       2004        2006

Source: CMAI / Equistar (September/2003)
                                                                                              17
 We Believe that Global Ethylene Supply/Demand
 is on a Path to a Tight Balance
                                                                 CMAI base case                     Sensitivity
                                                           300
  World Ethylene Supply - Demand




                                                           275
                                   (billion pounds/year)




                                                           250




                                                           225




                                                           200




                                                           175
                                                                 2003       2007          '07 + 2% Growth   '07 - 18 M o Delay

                                                                          Effective Capacity     Demand


Source: CMAI
                                                                                     18
 The Emergence of a Middle Class Increases Local
 Demand for Plastics
PE Consumption/capita, lbs
                                                                                                       China PE Demand
 120                                                                                                  Domestic vs. Export
                                                                                      US        12
 100
                        Korea                                                  Singapore
                                                                                                10
                                       Taiwan
  80
                                                              WE                                 8
           Malaysia
  60
                                                                                 Japan           6

  40                                                                                             4
               Thailand

  20                                                                                             2
           China
           India
            Indonesia                                                                            0
   0
       0       5, 000     10, 000   15, 000     20, 000   25, 000    30, 000    35, 000    40, 000   Domestic     Exports

                                         2000 GDP/Capita                                                   1995 2001

Sources: CMAI 2001; Nexant Chemsystems                              19
    The Most Recent CMAI US Demand Forecast
    Departs from the Historic Trend Line
                                         Quarterly U.S. Ethylene Dem and vs. GDP
                              20
                                                NPRA Quarterly Demand
                                                                                                   2010
                              18                CMAI Based Forecast
  Quarterly Ethylene Demand




                                                30-Year Trendline
                              16


                              14
            (Bl. Lbs)




                              12                                                    2003


                              10


                              8


                              6          1970



                              4
                                   3.0             5.0             7.0          9.0         11.0          13.0
                                                         GDP - Trillion $ (constant 1996 $'s)
Source: SRI, CMAI, NPRA, US Govn.
                                                                        20
    Liquid Cracking Provides an Advantage vs.
    Ethane Raw Materials
         Equistar Capability                       Liquid Cracking Variable Cost Advantage
                                                                   vs. NGL
                             NGL                                     Ethane - Light Naphtha Cost of Ethylene Spread
                                                   7
                             37%
                                                   6
    Liquid
      63%
                                                   5
                                   ¢/lb ethylene

                                                                                     Average
                                                   4
     N. American Industry
             (ex. Equistar)                        3

       Liquid                                      2
        22%
                                                   1

                                                   0




                                                                                                                                             1999




                                                                                                                                                                  2003
                                                                                                                                      1998




                                                                                                                                                                  2002
                                                                                                                                                    2000

                                                                                                                                                           2001
                                                       1987

                                                              1988
                                                                      1989

                                                                              1990

                                                                                     1991

                                                                                            1992

                                                                                                   1993

                                                                                                          1994




                                                                                                                               1997
                                                                                                                 1995

                                                                                                                        1996




                                                                                                                                                                  YTD
                            NGL       Source: ChemData
                            78%
Source: CMAI and Lyondell                                                    21
 Growing Global Demand will Increasingly be
 Supplied by Gas Based Raw Materials
                                         140     Global Ethylene Supply            Global Propylene
                                                       by Feed Type                      Growth
                                         120
      Ethylene Supply – Heavy vs Light
             (billion pounds / year)




                                         100


                                         80


                                         60


                                         40


                                         20


                                          0
                                           Current (2003)       Additions (2008)       Propylene (Blb/yrs)


                                                 Heavy Liquid    NGL Based    Demand   Olefins Plant Supply

Source: CMAI
                                                                         22
          The Chemical Product Chains All Offer Upside in
          a Recovery
              Relative Raw Material Margin Range, 1994-2002
              100 = Period Average
                                  200
                                  180
                                  160
                                  140
                                  120
                                  100
                                     80
                                     60
                                     40
                                                                PG                           Styrene                          HDPE
•PG: U.S. Industrial Grade Propylene Glycol minus 0.63 x Chem Grade Propylene, both as reported by Chem Data
•Styrene: US Net Industry Average Styrene Price minus 0.28 x North America ethylene Net Transaction Price, minus 0.105 x North America Contract
Benzene, all as reported by CMAI
•HDPE: North America HDPE Domestic Market Contract Injection Molding price - Ethylene product cash cost (Weighted Average Feed) as
reported by CMAI
                                                                                                  23
Enterprise Earnings Capability Far Exceeds
Recent Trough Results
Cycle EBITDA Potential
                    Recession/               Pre-                                            Peak
       3000          Trough                Recession                                          $1.40 /
                                                                                               share
       2500
       2000                                                                 $6.30 /
 $MM




                                                                            share
       1500                                                                                               2002 Proportional
                                                                                                                Interest,
       1000                                                                                                   Dividends &
                                                                                                                 Capital
       500
            0
                       2002             1999/2000                                      1995              1988
                                        Margins 1                                     Margins 1         Margins 1

                                             LCR            IC&D          Equistar
   1 Chem Data/CMAI industry margins conditions for IC&D and Equistar products (ex. MTBE)
   applied to current capacities and ownership, LCR 2002 EBITDA, includes PO-11 capacity.
   Note: Assumes current capital structure; 175MM shares.

                                                               24
Our Financial Strategy is Focused and
Unchanged



   Maintain Sufficient Liquidity


   Repay Debt




                           25
We Have Maintained Significant Liquidity




                                            12/31/2002               9/30/2003

                                        Lyondell        Equistar   Lyondell   Equistar
     Cash & ST Investments              $330MM           $27MM     $393MM     $128MM
     Revolver 1                         $350MM          $450MM     $350MM     $325MM
           Total Liquidity              $680MM          $477MM     $743MM     $453MM


1– represents the undrawn balances and has not been reduced by
amounts committed against letters of credit:

(12/30/02: LYO-$49MM, Equ-$16MM)

(9/30/03: LYO-$53MM, Equ-$17MM)


                                                   26
         We Have Actively Managed Our Maturity Profile


                      Debt Maturities(1),(2)                                                   Pre-Payable Debt(3)

       ($MM)                                                                ($MM)
      2,000                                                               2,000
      1,800                                                               1,800
      1,600                                                               1,600
      1,400                                                               1,400
      1,200                                                               1,200
      1,000                                                               1,000
        800                                                                 800
        600                                                                 600
        400                                                                 400
        200                                                                 200
          0                                                                   0
               2003      2004     2005         2006    2007     2008                   2003    2004      2005       2006      2007         2008

                                 Lyondell   Equistar                                                    Lyondell   Equistar

(1)      Lyondell: $350MM Revolving Credit Facility expires in 2005 (not included); does not include $100MM Receivables Purchase Program
(2)      Equistar: Does not include $250MM Inventory Revolving Credit Facility or $450MM Receivables Purchase Program; includes $98MM GE Railcar
         Lease, which expires during fourth quarter 2004.
(3)      Debt with make-whole provisions are shown at maturity, including the $900MM Senior Secured Notes Series A due 2007 (Lyondell), the $700MM
         Senior Notes due 2008 (Equistar) and the $600MM Senior Unsecured Notes due 2009 (Equistar).

                                                                                  27
De-leveraging Will Benefit All Stakeholders



   Impact of Lyondell debt reduction at constant capitalization1:
                                                                            Debt Reduction
                                                                                $2B
    Debt to capitalization                                                      35%
    Avoided interest expense                                                 $200MM/Yr

    Earnings improvement                                                      75¢/share
    Share price improvement at
    constant capitalization                                                 $11.50/share

    1   Capitalization = debt + book value of equity + minority interest
        Based on 175 MM shares outstanding


                                                                       28
                                              Lyondell Chemical Company
                                      Reconciliation of Net Income (Loss) to EBITDA
                                                              (Millions of dollars)

                                                                                                        Six M onths
                                                                                                             Ende d            For the tw e lve m onths e nde d
                                                                                                            June 30,                     De ce m be r 31,
                                                                                                              2003               2002                       2001
Lyondell net loss                                                                                       $        (181)     $         (148)           $         (150)
Add: Benefit from income tax                                                                                      (94)                (58)                      (76)
     Interest expense, net                                                                                        182                 373                       369
     Depreciation and amortization                                                                                118                 244                       254
     Loss from equity investment in Equistar                                                                      132                 117                        77
     Income from equity investment in LCR                                                                         (56)               (135)                     (129)
     Loss from other equity investments                                                                           -                     5                        12
     Restructuring charges (credits)                                                              (a)             -                    (3)                       63
     Extraordinary loss on early retirement of debt, net of tax                                                   -                    15                         5
Lyondell EBITDA excluding restructuring charges (credits)                                         (b)   $            101   $            410          $             425


Equistar net loss                                                                                       $        (195)     $       (1,299)           $         (283)
Add: Cumulative effect of accounting change                                                                       -                 1,053                       -
     Depreciation and amortization                                                                                154                 298                       319
     Interest expense, net                                                                                        102                 204                       189
     Facility closing costs                                                                       (c)             -                   -                          22
     Extraordinary loss on early retirement of debt, net of tax                                                   -                   -                           3
Equistar EBITDA                                                                                         $             61   $            256          $             250
Proportionate Share - % varies                                                                    (d)   $             43   $            122          $             103


LCR net income                                                                                          $             86   $            213          $             203
Add: Depreciation and amortization                                                                                    57                116                        108
     Interest expense, net                                                                                            19                 32                         51
     Extraordinary loss on early retirement of debt                                                                  -                    1                          2
LCR EBITDA                                                                                              $            162   $            362          $             364
Proportionate Share - 58.75%                                                                            $             95   $            213          $             214


Lyondell and Proportionate Share of Equity Investments - EBITDA
Lyondell EBITDA excluding restructuring charges (credits)                                               $            101   $            410          $             425
Lyondell share of Equistar EBITDA                                                                 (d)                 43                122                        103
58.75% of LCR EBITDA                                                                                                  95                213                        214
75% of LMC EBITDA through April 30, 2002                                                                             -                   (3)                        (3)
Lyondell and Proportionate Share of Equity Investments                                                  $            239   $            742          $             738
________
 (a)   Restructuring charges (credits) related to shutdow n of Lyondell's ADI business.
 (b)   Annualized EBITDA f or the six months ended June 30, 2003 is approximately $200 million.




                                                                                   29
                                                                              Lyondell Chemical Company
                                                                   Reconciliation of LCR Net Income (Loss) to EBITDA
                                                                                          (Millions of dollars)

                                       1Q 2000    2Q 2000     3Q 2000     4Q 2000     1Q 2001     2Q 2001     3Q 2001 (a) 4Q 2001    Q1 2002     Q2 2002       Q3 2002   Q4 2002 (b) Q1 2003   Q2 2003   Q3 2003

Net income (loss)                     $ 22        $ (22)      $ 66        $ 62        $ 42        $ 66        $ 78       $ 17        $ 41        $ 63          $ 50      $ 59        $ 28      $ 58      $    69
Add: Depreciation and amortization         26          30          28         28          28          27          26          27          29          30           28        29          28        29         28
     Interest expense, net                 12          16          16         17          16          15          10          10           8           7            8         9          10         9          8
LCR EBITDA                            $ 60        $ 24        $ 110       $ 107       $ 86        $ 108       $ 114      $ 54        $ 78        $ 100         $ 86      $ 97        $ 66      $ 96      $   105

________
 (a) EBITDA for LCR for the three months ended September 30, 2001 was originally reported as $116 million and was restated to include extraordinary charges
     related to early debt retirement, currently reflected in other expense, net.

 (b) EBITDA for the three months ended December 31, 2002 was originally reported as $98 million and was restated to include extraordinary charges related to
     early debt retirement, currently reflected in other expense, net.




                                                                                                              30
                                Lyondell Chemical Company
              Reconciliation of Lyondell and Proportionate Share of Ventures'
                       Interest, Capital Expenditures and Dividends
                    For the Twelve Months ended December 31, 2002
                                                       (Millions of dollars)



Lyondell IC&D
    Interest expense                                                                                                     $    384
    Capital expenditures                                                                                 (a)                   22
    Dividends                                                                                                                 109
Total                                                                                                                    $    515


Equistar
     Interest expense                                                                                                         205
     Capital expenditures                                                                                                     118
Total                                                                                                                    $    323
Proportionate Share - 70.5%                                                                              (b)             $    228


LCR
        Interest expense                                                                                                       32
        Capital expenditures                                                                                                   65
Total                                                                                                                    $     97
Proportionate Share - 58.75%                                                                                             $     57


Lyondell and Proportionate Share of Equity Investments -
     Interest, Capital Expenditures and Dividends
Lyondell IC&D                                                                                                            $    515
Lyondell share of Equistar                                                                               (b)                  228
58.75% of LCR                                                                                                                  57
Lyondell and Proportionate Share of Equity Investments
     Interest, Capital Expenditures and Dividends                                                                        $    800
________
 (a)    Excludes contributions to PO-11 and U.S. PO joint ventures.
 (b)    For purposes of this presentation, Lyondell's proportionate interest in Equistar is reflected at its current ownership interest
        of 70.5% and not at its historical ownership interest.




                                                                            31

				
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