LyondellBasell Industries N : Q1 2020 Presentation Slides

FIRST QUARTER 2020 EARNINGS

May 1, 2020

CAUTIONARY STATEMENT AND

INFORMATION RELATED TO FINANCIAL MEASURES

CAUTIONARY STATEMENT

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 business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of crude oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2019, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

The illustrative results or returns of growth projects are not in any way intended to be, nor should they be taken as, indicators or guarantees of performance. The assumptions on which they are based are not projections and do not necessarily represent the Company's expectations and future performance. You should not rely on illustrated results or returns or these assumptions as being indicative of our future results or returns.

This presentation contains time sensitive information that is accurate only as of the date hereof. Information contained in this presentation is unaudited and is subject to change. We undertake no obligation to update the information presented herein except as required by law.

INFORMATION RELATED TO FINANCIAL MEASURES

This presentation makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.

EBITDA, 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. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. EBITDA should not be considered 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. We also present EBITDA exclusive of adjustments for "lower of cost or market" ("LCM"), which is an accounting rule consistent with GAAP related to the valuation of inventory. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in,first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, which reduces the value of inventory to market value. This adjustment is related to the recent decline in pricing for many of our raw material and finished goods inventories. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover.

Cash from operations yield from EBITDA excluding LCM is a measure that provides an indicator of a company's operational efficiency and management. Cash from operations yield from EBITDA excluding LCM, as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. For purposes of this presentation, cash from operating activities yield from EBITDA means cash from operating activities divided by EBITDA excluding LCM.

The ratio of total debt to EBITDA excluding LCM and free operating cash flow are measures of profitability commonly used by investors to evaluate performance, the ratio of total debt to EBITDA excluding LCM and free operating cash flow, as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. For purposes of this presentation, the ratio of total debt to EBITDA is the sum of long term debt and short term debt divided by EBITDA excluding LCM. Free operating cash flow means net cash provided by operating activities minus sustaining (maintenance and HSE) capital expenditures. Additionally, total liquidity is a measure that provides an indicator of value to investors. For purposes of this presentation, total liquidity includes cash and cash equivalents, restricted cash and restricted cash equivalents, short term investments, and availability under our Senior Revolving Credit Facility and our Receivables Facility.

Reconciliations for our non-GAAP measures can be found on our website at www.LyondellBasell.com/investorrelations.

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FIRST QUARTER 2020 HIGHLIGHTS

RESILIENT PORTFOLIO THAT IS WELL POSITIONED FOR CHALLENGING MARKETS

$0.1 B		$0.6 B		$0.42		$0.4 B
NET INCOME		EBITDA		DILUTED EPS		DIVIDENDS
$0.5 B		$1.1 B		$1.47
NET INCOME ex. LCM		EBITDA ex. LCM		DILUTED EPS ex. LCM

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IMPACT OF COVID-19 AND OIL PRICE VOLATILITY

LYONDELLBASELL IS TAKING ACTION TO MITIGATE MARKET EFFECTS

STATE OF

CURRENT OPERATIONS

All major sites operating

Several small APS sites idled or

running at reduced rates

Reducing operating rates to meet

decreased demand

ACTIONS

WE ARE TAKING

Implemented recommended

safe work practices

Reducing 2020 CAPEX by $500 MM

Reducing inventories

Increased liquidity by $2 B

Affirming commitment to a strong

investment grade rating

1Q20 MARKET

IMPACTS

Declining fuel, automotive and durables

market demand

Strong packaging and

medical grade polymer demand

Resilient integrated polyethylene margins

4

PLASTIC PACKAGING MARKET INDICATORS

CONSUMER HABITS EXPECTED TO CHANGE

Sales

USD % Change

250%

200%

150%

100%

50%

0%

Jan-Feb	8-Mar	15-Mar		22-Mar	29-Mar		5-Apr
2020
Paper products			Healthcare Goods		Packaged Food		Dairy		Frozen

PANTRY STOCK	MEDIUM TERM
	DEMAND

5

~40%

WILL WORK FROM HOME

MORE OFTEN

~65%

WILL EAT AT HOME

MORE OFTEN

Source: IRI; April survey of US Primary Grocery Shoppers that complied with stay at home orders.

CONSISTENT SAFETY FOCUS

INCORPORATING BEST PRACTICES FOR VIRUS RESPONSE

Injuries per 200,000 hours worked 0.5

0.4

0.3

0.2

0.1

2016 2017 2018 2019 1Q20

LyondellBasell		ACC Top Quartile

6	Source: American Chemistry Council (ACC) and LyondellBasell. Note: Number of hours
	worked includes employees and contractors. Data includes safety performance from the

acquisition of A. Schulman from August 21, 2018 forward.

INDUSTRIAL HYGIENE

SOCIAL DISTANCING

HEALTH MONITORING

OUR PRODUCTS SUPPORT THE FIGHT AGAINST COVID-19

CHEMICALS AND PLASTICS SUPPORT ESSENTIAL NEEDS FOR SOCIETY

MELT-BLOWN POLYPROPYLENE	ALCOHOLS	POLYOLEFINS
Face Masks	Hand Sanitizer	Test Kits & Medical Devices

STRONG CASH CONVERSION

DELIVERING TYPICAL PATTERN OF CASH FROM OPERATING ACTIVITIES

Cash from Operating Activities USD, billions

$7

6

5

4

3

2

1

2015	2016	2017	2018	2019	1Q20 LTM
		Free Operating Cash Flow			Sustaining Capex

90%

CASH FROM OPERATING ACTIVITIES / EBITDA ex. LCM

1Q20 LTM

$4.8 B

CASH FROM OPERATING ACTIVITIES

1Q20 LTM

$3.8 B

FREE OPERATING CASH FLOW

1Q20 LTM

8	Note: Free Operating Cash Flow = cash from operating activities - sustaining (maintenance and HSE) capital expenditures.

CASH GENERATION AND DEPLOYMENT

CASH FLOW SUPPORTING ACCRETIVE INVESTMENTS AND SHAREHOLDER RETURNS

DELIVERING RESULTS

Cash from operating activities $0.5 B

GROWINGTHROUGH INVESTMENT

Building PO/TBA plant

RETURNINGVALUE TO SHAREHOLDERS

USD, billions $4

3

2

$1.8

1$1.1

Dividends $351 MM	1Q20	Cash from	Change in	CAPEX	Dividends &	Other	1Q20
	Beginning	Operating	Debt		Share		Ending
	Balance	Activities			Repurchases		Balance

9	Note: Beginning and ending cash balances include cash and cash equivalents, restricted cash, and liquid investments. CAPEX includes growth and sustaining
	(maintenance and HSE) capital.

MAXIMIZING LIQUIDITY

LYONDELLBASELL IS PREPARED FOR A RANGE OF SCENARIOS

ACTIONS SUPPORTING		ACTIONS REDUCING
CASH INFLOW		CASH OUTFLOW

Accelerating cost efficiency initiatives

Reducing 2020 CAPEX by $500 MM

Increased liquidity by $2 B to more than $5 B

Deferring planned maintenance

Aggressively managing inventories	Prioritizing liquidity over
to reduce working capital	share repurchases and M&A

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STRONG BALANCE SHEET

DEMONSTRATING PRUDENT FINANCIAL MANAGEMENT

ROBUST LIQUIDITY

Total liquidity >$5 B

April 24, 2020

MODERATE LEVERAGE RATIO

Total debt / EBITDA ex. LCM 2.5x 1Q20 LTM

STRONG INVESTMENT GRADE

Credit rating BBB/Baa1

Long-Term Debt USD, billions

$ 3.5

3.0

2.5

2.0

1.5

1.0

0.5

2021 2022 2023 2024 2025 2026 2027 … 2030 2031 … 2043 2044 … 2049 2050 … 2055

USD		EUR

Note: Long-term debt as of April 20, 2020. Includes the 2.875% Senior Notes due 2025, 3.375% Senior Notes due 2030 and 4.20% Senior Notes due 2050 issued on

11April 20, 2020. Excludes debt discount, debt issuance cost and leases classified as long-term. 2022 long term debt includes $500 MM borrowed under our RCF and $1.95 B borrowed under our 2022 Term Loan, which can be repaid without penalty. EUR notes outstanding are shown in USD equivalent using a FX rate of 1.085 USD to 1 EUR. Long term weighted average interest rate reduced from 3.78% to 3.76% as a result of the April 20, 2020 issuance.

UPDATED 2020 MODELING INFORMATION

CAPITAL

EXPENDITURES

MAJOR

PLANNED

MAINTENANCE EBITDA IMPACT

	Sustaining CAPEX
Total CAPEX	~$0.8 B
~$1.9 B	Profit Generating CAPEX
	~$1.1 B

	1Q	2Q	3Q	4Q
O&P - Americas
~$25 MM	~$30 MM
O&P - EAI			--	--
I&D	~$10 MM	~$10 MM	--	--

FINANCIAL

METRICS

Interest Expense

~$410 MM

Depreciation & Amortization

~$1.5 B

Pension Contribution

~$80 MM

Pension Expense

~$100 MM

Effective Tax Rate

Mid-teens %

12	Note: Interest expense includes ~$45 MM capitalized interest.

RESILIENT PORTFOLIO

DIVERSE GLOBAL BUSINESS PORTFOLIO PROVIDES STABILITY

EBITDA ex. LCM USD, billions

$2.0

1.5

1.0

0.5

1Q19		2Q19		3Q19	4Q19	1Q20
		EBITDA		EBITDA ex. LCM

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CONSUMER DRIVEN

Majority of portfolio supports non-durables

CHALLENGING

Market conditions

ADVANTAGED

Reliable assets with feedstock flexibility

SUPERIOR FEEDSTOCK FLEXIBILITY

ROBUST FEEDSTOCK OPTIMIZATION ENHANCES PROFITABILITY

GLOBAL CRACKER NETWORK

Full-range assets that utilize ethane, propane, butane, y-grade, naphtha and other advantaged feeds

NORTH AMERICA

Advantaged feeds in both the U.S. Gulf Coast and Midwest markets

EUROPE

Capability to run ~50 % non-naphtha feedstocks such as propane, butane, condensates and refinery streams

Ethylene Production

100%

75%

50%

25%

LyondellBasell	Industry	LyondellBasell	Industry
North America	North America	Europe	Europe

Full-range		Ethane/Propane		Ethane		Naphtha

14	Note: Full-range for North America represents the production that may switch between ethane, propane, butane and other liquids such as naphtha. Full range
	for Europe represents the production that may switch between naphtha, propane, butane and other advantaged feeds such as condensate and hydrowax.

FEEDSTOCK FLEXIBILITY PROVIDES MARGIN BENEFITS

DIVERSE GLOBAL BUSINESS PORTFOLIO PROVIDES RESILIENCE

NORTH AMERICA

Maximizing value by optimizing feedstocks in our flexible crackers

EUROPE

Maximizing value across naphtha, LPGs and other advantaged feedstocks

North America Integrated PE Margin

USD / ton

$1,000
800
600
400
200
		2017			2018	2019		Jan 20		Feb20	Mar 20	Apr20
-200		2017	2018	2019	Jan 20	Feb 20	Mar 20	Apr 20
				Ethane Margin			Naphtha Margin			HDPE Margin

Europe Integrated PE Margin

USD / ton

$1,000 800 600 400 200

-200	2017	2018	2019	Jan 20 Feb 20 Mar 20 Apr 20
				Naphtha Margin			HDPE Margin

15	Source: IHS Markit.

OLEFINS & POLYOLEFINS - AMERICAS

STRONG DEMAND SUPPORTED SEASONAL POLYETHYLENE PRICE INCREASE

EBITDA ex. LCM

USD, millions

$635	$653	OLEFINS
$516	$523	Margin declined due lower ethylene prices partially offset
	$477	by decreased feedstock prices

Volume declined due to planned maintenance

POLYOLEFINS

Launched production at 500 kta HyperzonePE plant

Polyethylene spread increased

1Q19	2Q19	3Q19		4Q19		Volume Margin	Other	1Q20
				EBITDA		EBITDA ex. LCM

16

OLEFINS & POLYOLEFINS - EUROPE, ASIA & INTERNATIONAL

LOWER FEEDSTOCK COSTS, INCREASED RELIABILITY AND HIGHER VOLUMES DROVE SEQUENTIAL IMPROVEMENT

EBITDA ex. LCM

USD, millions

$331

$296$291

$225

$144

1Q19	2Q19	3Q19		4Q19		Volume Margin	Other	1Q20
				EBITDA		EBITDA ex. LCM

OLEFINS

Margin improved due to lower feedstock prices

Volume increased due to improved reliability

POLYOLEFINS

Volume increased and spreads declined in both polyethylene and polypropylene

EQUITY INCOME

Margins and volumes declined

17

INTERMEDIATES & DERIVATIVES

OXYFUELS MARGINS DECLINED DUE TO LOWER GASOLINE DEMAND IN MARCH

EBITDA ex. LCM

USD, millions

$448

$390$390

$329

PO & DERIVATIVES

Volume and margin increased due to U.S. demand and industry outages

INTERMEDIATE CHEMICALS

$281

Margins increased, mostly in acetyls

Volume declined due to planned maintenance

OXYFUELS & RELATED PRODUCTS

1Q19	2Q19	3Q19		4Q19		Volume Margin	Other	1Q20	Margins decreased driven by lower product prices
				EBITDA		EBITDA ex. LCM

18

ADVANCED POLYMER SOLUTIONS

SEASONAL IMPROVEMENTS MUTED BY LOW DEMAND AND SHUTDOWNS IN AUTOMOTIVE END MARKETS

EBITDA ex. LCM

USD, millions

$148

$120	$115
	$102

$62

1Q19	2Q19	3Q19		4Q19		Volume Margin	Other	1Q20
				EBITDA		EBITDA ex. LCM

COMPOUNDING & SOLUTIONS

Continued low automotive demand and COVID-19 impact

Margins and volumes increased

ADVANCED POLYMERS

Catalloyvolume and margin increased due to seasonal construction demand

INTEGRATION COSTS

$14 MM in 1Q20

19	NOTE: 1Q19 through 1Q20 EBITDA includes integration costs of $130 MM.

REFINING

DIMINISHED MARGINS, LOWER VOLUME AND FCC OUTAGE STRESSED PROFITABILITY

EBITDA ex. LCM

USD, millions

		$22			CRUDE THROUGHPUT
					226 MBPD - impacted by unplanned maintenance
$(15)	$(6)

$(66) $(80)

1Q19	2Q19	3Q19		4Q19		Volume Margin	Other	1Q20
				EBITDA		EBITDA ex. LCM

20

MARGIN DECLINE

Maya 2-1-1 decreased by $2.23 to $17.21 Inability to upgrade fuels during FCC outage

TECHNOLOGY

LICENSING IMPACTED BY REVENUE TIMING WITH CONTINUED STRONG CATALYST SALES

EBITDA

USD, millions

$138

$107

$83$83

$56

LICENSING

Reduced number of revenue milestones in 1Q20 versus

significant milestones reached in 4Q19

CATALYST

Continued strong catalyst volumes

1Q19 2Q19 3Q19 4Q19 1Q20

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FIRST QUARTER 2020 SUMMARY & OUTLOOK

RESILIENT PORTFOLIO THAT IS WELL POSITIONED FOR CHALLENGING MARKETS

LEADING	DISCIPLINED	CHALLENGING	PROACTIVE
ADVANTAGED	FINANCIAL	OUTLOOK	BUSINESS
POSITIONS	POLICIES		RESPONSES

Reliable, cost efficient operator	Efficient cash generation	Declining fuel, automotive and	Increased liquidity
Feedstock flexibility	Secure dividend	durables market demand	Accelerating cost efficiencies
Resilient portfolio	Committed to strong	Strong polymer demand from	Reducing inventories and
	investment grade rating	packaging and medical markets	2020 CAPEX

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