DATA BOOK - LyondellBasell

DATA BOOK
UPDATED: AUGUST 2015
La Porte – Texas, U.S.A.
Cautionary Statement
The information in this Data Book includes forwardlooking 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 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; 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, 2014, which can be found
at www.lyb.com on the Investor Relations page and on
the Securities and Exchange Commission’s website at
www.sec.gov.
On the cover: Geelong, Victoria – Australia
I
Fos-sur-Mer – France
Information Related to Financial Measures
This Data Book includes certain “non-GAAP” financial
measures. The non-GAAP measures we have presented
include income from continuing operations excluding LCM,
diluted earnings per share excluding LCM, EBITDA and
EBITDA excluding LCM. LCM stands for “lower of cost or
market,” 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 results in us writing down the value of inventory to
market value in accordance with the LCM rule, consistent
with GAAP. We report our financial results in accordance
with U.S. generally accepted accounting principles, but
believe that certain non-GAAP financial measures, such as
EBITDA and earnings and EBITDA excluding LCM, provide
useful supplemental information to investors regarding
the underlying business trends and performance of the
company’s ongoing operations and are useful for periodover-period comparisons of such operations. 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.
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 have also presented financial information
herein exclusive of adjustments for LCM.
Quantitative reconciliations of our non-GAAP measures to
the most comparable GAAP measures can be found in the
appendix.
II
Contents
Cautionary Statement
i
Information Related to Financial Measures
ii
Contents
1
Our Corporate Strategy
2
LyondellBasell At A Glance
3
Our Business Segments
4
Global Presence
6
Joint Ventures Increase Our Footprint
7
Optimizing Our Businesses
8
Pre-Tax Earnings Leverage
9
LyondellBasell Products Serve Diverse End Uses
10
Portfolio Stability
12
Vertically Integrated Portfolio Structure
13
Major Product Yield Factors
14
Olefins and Polyolefins Segments
15
Overview
16
Olefins Process
17
Global Olefins and Polyolefins Capacity Position
19
Olefins Production Process and Derivatives Chain
20
Olefins and Polyolefins–Americas
21
Olefins and Polyolefins–Europe, Asia & International
23
Intermediates and Derivatives Segment
25
Overview
26
Production Process
27
Product Capacities & Joint Ventures
29
Global Capacity
30
Refining Segment
31
Overview
32
Process Flow
33
Product Capacities
34
Technology Segment
35
Overview
36
Comprehensive Portfolio of Licensed Technologies
37
Appendix
39
Glossary of Acronyms
40
Key Benchmark Prices and Margins for 2012-2014
41
Income Statements for 2012-2014 42
Consolidated Balance Sheets for 2012-2014
43
Cashflow Statements for 2012-2014
44
Reconciliation Information
45-49
A Heritage of Achievement
50
1
Our Corporate Strategy
LyondellBasell is a top performer in our industry. To accomplish this, four strategic
elements guide our actions.
Operational Excellence
Focused Investment and Growth
Operational Excellence is LyondellBasell’s
fundamental method for achieving safe and
reliable performance, which has a direct,
positive impact on our bottom line. The safer
the plant, the more reliable it becomes – and
vice versa. The more efficient the operation,
the less raw materials and energy it consumes,
the less waste it generates and the more we
contribute to a sustainable future. All of this
is driven by the implementation of proven,
operational processes designed from company
and industry best practices.
Whether we are applying our proprietary
technology or leveraging innovations in the
chemical and energy sectors, LyondellBasell is
investing in growth projects that will expand
our advantaged positions now and into the
future. In 2014, we invested $800 million in
growth projects and $700 million in operational
maintenance and reliability.
Cost Management
Delivering top performance requires disciplined
cost control regardless of industry conditions.
Careful management of fixed costs and a lean,
motivated organization are key drivers of our
business model.
Industry-Leading
Operating Rates
2014 Operating Rates
•U.S. Ethylene – 95%*
•Europe Ethylene – 95%
•Propylene Oxide – 90%
•Houston Refinery – 97%
Financial Discipline
*Excludes La Porte turnaround
Our management is committed to a financial
strategy that positions the company long-term
and targets the highest return to shareholders.
In 2014, LyondellBasell was an industry leader
in share repurchases and dividends.
Return to Shareholders
in 2014
•$7.2 billion in share repurchases
and dividends
•63.3 million shares repurchased (12%)
•Dividend increased by 17%
Strong Balance Sheet and
Cash Flow in 2014
•Free Cash Flow: $4.5 billion
•Debt/EBITDA of 0.9x, excluding LCM
•Corporate Credit Rating of BBB+/Baa1
Named a Responsible Care Company of the Year
by the American Chemistry Council
2
LyondellBasell At A Glance
LyondellBasell Overview
LyondellBasell (NYSE: LYB) is one of the world’s largest plastics, chemical
and refining companies and a member of the S&P 500 Index. We had
annual revenues of approximately $46 billion in 2014 and 13,100 employees
worldwide. The Company manufactures products at more than 55 sites in
18 countries. LyondellBasell products and technologies are used to make
EPS Bridge(1) 2011-2014
items that improve the quality of life for people around the world including
textiles, food packaging, electronics, automotive parts, home furnishings,
construction materials and biofuels. More information about LyondellBasell
can be found at www.lyb.com.
Highlights of Consolidated Financial Statements (USD millions)
per share
$10
$8.92
2012
2013
2014
Sales and other operating revenues
$45,352
$44,062
$45,608
Income from continuing operations
$2,858
$3,860
$4,172
$8
Diluted EPS from continuing operations
$4.96/share
$6.76/share
$8.00/share
$6
Cash flow from operating activities
$4,787
$4,835
$6,048
Ebitda
$5,808
$6,311
$7,050
$4.32
$4
LCM adjustment*
$2
$0
2011 EPS
As Reported
2014 EPS
--
--
$760
EBITDA, excluding LCM
$5,808
$6,311
$7,810
Income from continuing operations,
excluding LCM
$2,858
$3,860
$4,655
$4.96/share
$6.76/share
$8.92/share
$2,732
$4,450
$2,974
13%
14%
17%
Regular dividends
$1.45/share
$2.00/share
$2.70/share
Special dividends
$2.75/share
--
--
0.76x
0.92x
0.91x
Diluted EPS from continuing operations,
excluding LCM
Excluding LCM
• EBITDA up $2.3B, or 43%
Cash and liquid investments(2)
• Effective tax rate decreased by 6% pts.
EBITDA excluding LCM/revenues
• Share count lower by 15%
Total debt/EBITDA excluding LCM
(1)2014 EPS is adjusted for the impact of the LCM
adjustment.
(2)Balance sheet items represent end of year data.
*LCM stands for lower of cost or market. An explanation of LCM can be found under the “Information Related to
Financial Measures,” section in the front of this Data Book.
Global Capacity Positions
Ethylene
5th
Polyethylene
5th
Propylene Oxide
2nd
Oxygenated Fuels
1st
Polypropylene
1st
Propylene
6th
Polypropylene Compounds
1st
Polyolefin Licensing
3rd
2014 Sales by Segment(3)
2014 EBITDA, excluding LCM
USD millions
USD millions
$15,000
$4,000
$12,000
$3,200
$9,000
$2,400
$6,000
$1,600
$3,000
$800
$0
$0
Refining Capacity = 268,000 Barrels Per Day
Sources: Third party consultants data.
Note: Capacities and worldwide capacity positions are as
of December 31, 2014, and include our wholly owned
capacity and pro rata share of joint venture capacities.
O&P Americas
O&P EAI
I&D
Refining
Technology
(3)Revenue amounts reported include intersegment revenues without the presentation of “other,” which includes the
elimination of intersegment revenues. The total of the amounts presented will exceed consolidated revenues.
3
Our Business Segments
LyondellBasell Portfolio
LyondellBasell consists
of a balanced,
integrated product
portfolio comprising
five major business
segments. Each plays a
strategic role in creating
stakeholder value.
O&P–Americas
O&P–Europe, Asia & International
Our O&P–Americas segment produces and
markets ethylene, propylene, polyethylene,
polypropylene and various co-products.
We are a leading producer of light olefins
(ethylene and propylene), the largest
polypropylene producer and the thirdlargest producer of polyethylene in North
America. In addition, we produce significant
quantities of high-value specialty products
such as Catalloy process resins.
Our O&P–EAI segment produces and
markets ethylene, propylene, polyethylene,
polypropylene and various co-products. We
are the largest producer of polypropylene
and polyethylene in Europe. We are also the
largest worldwide producer of polypropylene
compounds, a high-value specialty product.
We also produce significant quantities of
other high-value specialty products such as
Catalloy process resins and Polybutene-1.
Key Advantages
Key Advantages
Increased processing capability and
access to low cost natural gas liquids
(NGLs)
Feedstock-advantaged joint ventures
and premium grade polyolefin
products
Key Products
Ethylene
Propylene
Polyethylene
Polypropylene
Catalloy Process Resins
Polypropylene Compounds
Polybutene-1
Butadiene
Benzene
End Uses
Packaging
Textiles
Automotive
Appliances
4
Films
Flexible Piping
Intermediates and Derivatives Refining
Technology
Our I&D segment produces and markets
propylene oxide and its co-products and
derivatives, acetyls including methanol, ethylene
oxide and its derivatives, ethanol, and oxyfuels
such as methyl tertiary butyl ether and ethyl
tertiary butyl ether. Propylene oxide co-products
include styrene monomer and C4 chemicals
(tertiary butyl alcohol or TBA), most of which is
used to make oxyfuels, isobutylene and tertiary
butyl hydroperoxide. Propylene oxide derivatives
include propylene glycol, propylene glycol ethers
and butanediol. We believe that our proprietary
propylene oxide and acetyls production process
technologies provide us with a cost advantaged
position for these products and their derivatives.
Our Refining segment refines heavy and
light high-sulfur crude oil in the U.S. Gulf
Coast. Our Houston refinery is among North
America’s largest full conversion refineries
capable of processing significant quantities
of heavy, high-sulfur crude oil. The growth
in North American crude oil production and
pipeline infrastructure creates significant
opportunities for this segment through costadvantaged crude oil.
Our Technology segment develops and
licenses industry-leading polyolefin process
technologies, a portfolio of selected
chemical technologies and provides
associated engineering and other services.
We also develop, manufacture and sell
polyolefin catalysts and provide associated
technical support services. We market our
process technologies and our polyolefin
catalysts to external customers and also use
them in our own manufacturing operations.
Key Advantages
Key Advantages
Key Advantages
Leading proprietary technologies
Diversity and linkage of our integrated
product portfolio
Access to low cost natural gas
Capability to process diverse crude mix
Strategic location on the Gulf Coast
Industry leading polyolefin process
technologies
Key Products
Key Products
Key Products
Propylene Oxide
Styrene Monomer
Propylene Glycols and Ethers
Methanol and Acetyls
TBA Intermediates
Ethylene Oxide
Ethylene Glycols and Ethers
Oxygenated Fuels
Gasoline
Ultra Low-Sulfur Diesel
Jet Fuel
Lube Oils
Process Licensing
Catalyst Sales
Technology Services
End Uses
End Uses
End Uses
Consumer
Insulation
Products
Home Furnishings
Coatings
Adhesives
Fuel Additives
Automotive
Automotive Fuels
Aviation Fuels
Heating Oil
Industrial Engine Lube Oils
5
Polyolefin and Chemical
Manufacturers
Global Presence
North America
USA
Illinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
South America
Argentina
Brazil
Middle East
Saudi Arabia
Europe
France
Germany
Italy
Netherlands
Rotterdam
Poland
Spain
United Kingdom
London Asia-Pacific
Australia
China
Hong Kong
Japan
S. Korea
Malaysia
Thailand
Administrative Offices/Headquarters
Manufacturing
Technology Centers
Joint Ventures
Owned and operated by LyondellBasell subsidiaries and/or joint
ventures.
2014 Employees by Region
2012-2014 Sales by Region
USD millions
$50,000
$40,000
North America: 6,000
$30,000
Europe: 6,000
$20,000
Rest of World: 1,100
$10,000
$0
2012
North America
6
2013
Europe
2014
Rest of World
Joint Ventures Increase Our Footprint
Chemical Monomers
Polymers
Chemical Intermediates
North America
USA
La Porte Methanol
Bayer PO/SM
Mexico
Indelpro
Middle East
Saudi Arabia
SPC
SEPC
Al Waha
Europe
Poland
BOP
Netherlands
Bayer PO/SM
Asia-Pacific
Japan
SunAllomer
Thailand
HMC Polymers
South Korea
PolyMirae
Malaysia
PolyPacific
China
Ningbo ZRCC
Australia
PolyPacific
Note: Each dot represents the presence of a business at a site, irrespective of the number of plants/lines the business has at that site.
2012-2014 Joint Venture Equity Income*
By Segment
By Region
USD millions
USD millions
$250
$250
$200
$200
$150
$150
$100
$100
$50
$50
$0
$0
-$50
-$50
2012
O&P Americas
2013
O&P EAI
2014
2012
Americas
I&D
* Does not include income from our U.S. and European Propylene Oxide JV’s.
7
2013
Asia Pacific
Europe
2014
Middle East
Optimizing Our Businesses
SEGMENT
LYB POSITION
• NGL advantage
O&P – Americas
• Increasing capacity
• Commodities – naphtha based, with
cyclical upside
O&P – EAI
• Advantaged feedstock
• Differentiated polymers
• Proprietary technologies
Intermediates & Derivatives (I&D)
• Natural gas advantage
• Large, heavy crude oil refinery
Refining
• Processing Canadian crude
• Strong technology position
Technology
• Maintain leadership
8
Pre-Tax Earnings Leverage
Estimated Pre-Tax Earnings Impact from Change in Margin, USD millions/year*
Wholly Owned
Chemicals
Polymers
Fuels
$100
$150
$150
$80
$120
$120
$60
$90
Proportional JV Contribution
$90
EAI
$40
$60
$60
EAI
$20
$30
$0
$0
$30
AM
AM
U.S. Ethylene
EU Ethylene
Propylene
Oxide
Chemicals impact 1¢/lb. change
$0
Polyethylene
Polypropylene PP Compounds
Polymers impact 1¢/lb. change
*Estimates are calculated using 2014 year-end production capacity, exclusive of specific contract impacts.
9
Refining
Oxyfuels
Refining impact of $1/bbl change and
oxyfuels impact of 10¢/gal.
LyondellBasell Products Serve Diverse End Uses
LyondellBasell products are the basic elements used to manufacture countless goods
and products that people use every day.
From fresh food packaging, clean fuels and durable textiles to medical applications,
construction materials and automotive parts, the uses for LyondellBasell materials are
almost unlimited.
Building Blocks
Products & Derivatives
End Uses
Polyethylene
Food and beverage packaging, cups, bottles, wire and cable compounds
and pipes
Vinyle Acetate Monomer
Ethylene
Hand sanitizer, hair spray, cleaning solutions, pharmaceuticals,
adhesives, paint and coatings
Ethanol
Ethylene Oxide
Antifreeze, polyester, solvents, cleaners, inks, coatings, surfactants,
industrial cleaners, cosmetics, emulsifiers and paint
Ethylene Glycol/Ethers
Urethane foams for automotive seating, home furnishings, coatings,
adhesives, sealants and elastomers
Propylene Oxide
Propylene
Propylene Glycol/Ethers
Polyester resins - bath fixtures, boat hulls, antifreeze, deicers, cosmetics
and cleaners
Butanediol & Derivatives
Engineering resins for automotive, films, personal care products, coatings,
pharmaceuticals, solvents and clothing
Fibers for carpets, rugs and upholstery, housewares, automotive
components, bottle caps and packaging films
Polypropylene
Polypropylene Compounds
Automotive interior and exterior panels and trims
Butadiene
Tires, rubber products
Polystyrene packaging, foam cups and appliances insulation
Benzene
Styrene Monomer
Methanol
Acetic Acid
Adhesives, paint and coatings, fuel additives, textiles and fibers, solvents,
construction plywoods
Isobutylene
Lube oil additives, coatings, butyl rubber, resins
MTBE/ETBE
Octane enhancer for gasoline
Tertiary Butyl Alcohol
Olefins & Polyolefins
Intermediates & Derivatives
10
Revenue by End Use*
Durable/Non-Durable Revenue*
Packaging
Transportation
Electronics
Consumer
Coatings
Fuels
Building &
Construction
Durable
Textiles &
Furnishings
* Estimates are based on LYB 2014 third party sales and third party industry volume estimates of product end uses.
Revenues of the Technology segment and inter-segment eliminations are excluded.
11
Non-durable
Portfolio Stability
Portfolio % at
2014 EBITDA
Examples
Description
100%
• Ethylene (naphtha)
90%
Cyclical
80%
• PE – Blow Molding
• PP – Homopolymer
Less than 30% of our EBITDA is
purely cyclical commodities
• Refining
70%
60%
• Ethylene (ethane)
U.S. Shale
Advantage
50%
• Oxyfuels
• Methanol
40%
30%
• Propylene Oxide
• Differentiated PE/PP
20%
Differentiated /
Stable
10%
• Catalloy & PB-1
• PP Compounds
• Technology Segment
0%
Nearly 40% of our EBITDA benefits
from shale oil/gas advantaged
positions, primarily in North
America, where we benefit from the
widened oil to gas ratio
More than 30% of LyondellBasell’s
EBITDA is derived from stable
businesses that benefit from
proprietary technology, steady
margin due to end uses, favorable
market structure, long-term
contracts, or a combination thereof
• Differentiated businesses provide a solid foundation
• Cyclical products represent a minority of 2014 earnings
Source: Internal LYB Estimates
12
Vertically Integrated Portfolio Structure
Wellhead
Crude
Natural Gas
Refining
Natural Gas
Liquids (NGLs)
Refining
Naphtha
Petrochemical
Building
Blocks
Polyethylene
Polypropylene
Polypropylene
Compounds
O&P–Americas
Polybutene-1
Catalloy
Methanol
Olefins
Propylene
Oxide
Glycols,
Glycol Ethers
Butanediol
O&P–Europe, Asia &
International
Ethylene
Oxide
Oxyfuels
Acetyls
Glycols,
Glycol Ethers
Intermediates &
Derivatives
13
Styrene
Technology
Second Level
Derivatives
Olefins
Crackers
Aromatics
Refining
Technology
Capturing value along the chain
Olefins
Derivatives
Fuels
Major Product Yield Factors
1.29 lbs. Ethane
1 lb.
2.38 lbs. Propane
0.62 lb.
1 lb. Ethylene Glycol
2.50 lbs. Normal Butane
1 lb. Ethylene
0.35 lb.
1 lb. Ethylene Glycol Ethers
3.25 lbs. Light Naphtha
0.84 lb.
1 lb. Ethylene Oxide
4.35 lbs. Atmospheric Gas Oil
0.36 lb.
1 lb. Vinyl Acetate Monomer
.02 MMBtu Natural Gas
1 lb. Methanol
0.54 lb.
1 lbs. Acetic Acid
0.71 lb.
5.9 lbs. Propane
0.78 lb.
0.78 lb.
1 lb. Propylene Glycol
1 lb. Propylene Oxide
0.87 lb.
1 lb. Butanediol
0.67 lb.
1 lb. Propylene Glycol Ethers
1 lb. Polyethylene
5.8 lbs. Normal Butane
1 lb. Propylene
6.17 lbs. Light Naphtha
6.76 lbs. Atmospheric Gas Oil
0.96 gal. n-Butane + 0.34 gal. Methanol
1 gal. MTBE
0.29 lb. Ethylene + 0.11 gal. Benzene
1 lb. Styrene Monomer
1 lb.
1 lb. Polypropylene
Olefins & Polyolefins
Intermediates & Derivatives
Source: IHS
Note: 2,205 lbs. = 1 metric ton
14
Olefins and Polyolefins
Segments
Key Advantages
Products used in a broad range of applications and
in products that people use every day with increasing
demand in developing markets
Operate multiple major integrated olefin and olefin
derivative sites, which provide cost efficiencies through
economies of scale and optimization
U.S. access to shale gas, low cost NGLs, and the ability to
process NGLs up to 90 percent of ethylene production
Strong global position in polypropylene compound products
which are tailor-made to meet the demanding requirements
of durable end‑use market applications, primarily servicing
the automotive, appliance and industrial markets
Feedstock advantaged joint ventures and differentiated
premium grade polyolefin products
Key Products
Olefins
– Ethylene
– Propylene
– Benzene
Polyolefins
15
– Propylene-based
compounds, materials
and alloys (polypropylene
compounds)
– Catalloy process resins
– Polybutene-1
– Butadiene
Aromatics
Specialty polyolefins
– Polypropylene
– High-density polyethylene
– Low-density polyethylene
– Linear low-density
polyethylene
Olefins and Polyolefins Overview
LyondellBasell is a leading worldwide producer of ethylene, propylene and
polyethylene and the world’s largest producer of polypropylene and polypropylene
compounds. Our polymers are used in extrusion, blow molding and injection
molding processes for a wide variety of end markets including food and beverage
packaging, construction, wire and cable, and automotive markets. We manage our
olefin and polyolefin businesses in two reportable segments: O&P–Americas and
O&P–Europe, Asia & International.
O&P–Americas: Our O&P–Americas segment
produces and markets ethylene, propylene,
polyethylene, polypropylene and various coproducts. We are a leading producer of light
olefins (ethylene and propylene), a leading
polypropylene producer and the third-largest
producer of polyethylene in North America. In
addition, we produce significant quantities of
high-value specialty products such as Catalloy
process resins.
O&P–EAI: Our O&P–EAI segment produces
and markets ethylene, propylene, polyethylene,
polypropylene and various co-products. We
are the largest producer of polypropylene and
polyethylene in Europe. We are also the largest
worldwide producer of PP compounds, a
high-value specialty product. We also produce
significant quantities of other high-value
specialty products such as Catalloy process resins
and Polybutene-1.
O&P - Combined Product
End Uses*
Packaging
O&P - Combined Product
Durability Breakdown*
Coatings
Consumer
Building &
Construction
Durable
Non-durable
Textiles &
Furnishings
Fuels
Transportation
*Estimates are based on O&P 2014 third party sales, and third party industry estimates of product end uses.
Financial Highlights (USD millions)
O&P-Americas
2012
2013
2014
Revenues
$12,934
$13,089
$13,948
EBITDA
$2,968
$3,573
$3,911
EBITDA, excluding LCM
$2,968
$3,573
$4,190
23%
27%
30%
O&P-EAI
2012
2013
2014
Revenues
$14,521
$14,685
$15,203
EBITDA
$548
$839
$1,366
EBITDA, excluding LCM
$548
$839
$1,410
4%
6%
9%
EBITDA excluding LCM/revenues
EBITDA excluding LCM/revenues
*LCM stands for lower of cost or market. An explanation of LCM can be found under the “Information Related to
Financial Measures,” section in the front of this Data Book.
16
Olefins Process
Olefins Process
Ethylene is our largest olefins product and propylene is the second largest
by volume produced by the Company
Basic process steps
– Thermal cracking
– Quench and compression
– Separation
Crackers classified by feedstock (raw materials) type – gas and/or liquid
Types of Ethylene Plants
NGL gas crackers
– Ethane, propane, butane feeds
– Lower initial construction cost
– Fewer by-products
Liquid crackers
– Heavy feedstock: Naphtha (gasoline) up to oil gas
– Can usually crack some NGL feeds
– Higher construction cost (~2x ethane feed plant)
– Broader, more flexible product slate
Channelview – Texas, U.S.A.
17
Ethylene Plant Material Balance (lb. Product/1000 lb. Ethylene)
6,000
Liquid crackers
5,000
4,000
NGL gas crackers
3,000
2,000
1,000
0
Ethane
Ethylene
Propane
Propylene
Butadiene
Lt. Naphtha
Other C4s
Gas Oil
Gasoline
Cash Cost of Ethylene (COE) Production
Fuel Gases
In olefins technology,
liquid crackers process
oil-based feedstocks and
produce considerably
more co-products such
as propylene, butadiene
and heavier products than
ethane crackers.
Fuel Oil
Source: IHS
Example of Calculating Cash COE
(¢/lb. Ethylene by Feedstock)
Cash COE
($/lb.) =
Feedstock Costs + Variable & Fixed Costs - Coproduct Value
Ethylene Production
The cash COE production is the total manufacturing cost to produce ethylene,
taking into consideration the co-product credit values and the capacity utilization.
Ethane
Naphtha
Feedstock Cost
12
117
+ Variable Cost
5
7
Fixed Cost
4
5
-Co-product Credits
(8)
(88)
Net Ethylene Cost
13
41
NOTE: Ethane price~27cpg
Naphtha price~199 cpg
18
Source: IHS and LyondellBasell; 2014 cents
per gallon economics provided by IHS.
Global Olefins and Polyolefins Capacity Position1
Global Ethylene Producers
Global Propylene Producers
Global Butadiene Producers
Global Capacity ~ 344 billion lbs./yr.
Global Capacity ~ 236 billion lbs./yr
Global Capacity ~ 32 billion lbs./yr
LyondellBasell
ExxonMobil
CNPC
SABIC
SINOPEC
TPC Group
Dow
Royal Dutch Shell
Other
LYB: #3 Global Polyolefins (Polyethylene and Polypropylene) Capacity (million lbs.)
SINOPEC
HDPE
ExxonMobil
LDPE
LLDPE
LyondellBasell
PP
SABIC
Dow
5,000
10,000
15,000
20,000
25,000
30,000
2000
2500
3000
LYB: #1 PP Compounding Capacity (million lbs.)2
LyondellBasell
Mitsui (ACP)
KingFa
Mitsubishi (JPP)
Washington Penn
500
1000
1500
(1) Source: IHS 2014 industry capacity data. LyondellBasell capacity includes LyondellBasell’s share of joint ventures capacity.
(2) Source: AMI Consulting.
19
Olefins Production Process and Derivatives Chain
Merchant
Propylene
Merchant
Ethylene
Styrene
Acetic Acid
Vinyl Acetate
High-Density
Polyethylene
Low-Density
Polyethylene
Linear
Low-Density
Polyethylene
Acetyls
High-Density
Polyethylene Unit
Low-Density
Polyethylene Unit
Linear Low-Density
Polyethylene Unit
EO/EG Unit
Ethylene
Propylene
Styrene
Monomer
Ethylene Oxide
Ethylene Glycol
Catalloy
PP Compounds
Polypropylene
Propylene
Oxide
Polypropylene
Unit
Propylene
Oxide Unit
Olefins Process
Heavy Fuels
Compression
C5 Recovery
Isoprene
Piperylene
Dicyclopentadiene
NGLs and
Petroleum Liquid
Feedstocks
Cracking
Furnaces
Gasoline
Fractionation
Fractionation
Benzene/
Toluene
Recovery
Benzene
Toluene
Gasoline
Styrene
Monomer
Butylene
Isomerization
Olefins and Polyolefins
20
Butadiene
Butylenes
MTBE Unit
Methanol
Intermediates and Derivatives
Butadiene
Recovery
MTBE
Alkylation
Unit
Alkylate
Olefins and Polyolefins–Americas
Product Capacities
2014 Annual Capacities, as of year end*
OLEFINS
Ethylene
10.7 billion lbs.
4.8 million MT
Propylene
5.5 billion lbs.
2.5 million MT
Butadiene
1.1 billion lbs.
0.5 million MT
AROMATICS
Benzene
195 million gals.
Toluene
40 million gals.
POLYOLEFINS
Polypropylene
4.4 billion lbs.
2.0 million MT
High-Density Polyethylene
3.6 billion lbs.
1.6 million MT
Low-Density Polyethylene
1.3 billion lbs.
0.6 million MT
Linear Low-Density Polyethylene
1.3 billion lbs.
0.6 million MT
600 million lbs.
272 thousand MT
SPECIALTY POLYOLEFINS
Catalloy process resins
2,205 lbs. = 1 metric ton
* Represents the total annual nameplate capacity, which includes approximately 670 million lbs. of polypropylene owned by third parties through a joint venture arrangement.
Joint Ventures
Name
Location
J. V. Partner
Ownership
Product
Indelpro
Mexico
Alfa
49%
Polypropylene
2,205 lbs. = 1 metric ton
** Represents the joint venture’s total capacity and not our proportional share.
Corpus Christi – Texas, U.S.A.
21
2014 Capacity**
1.3 billion lbs.
0.6 million MT
Olefins and Polyolefins–Americas
2014 NORTH AMERICAN
INDUSTRY AVERAGE
ANNUAL CAPACITY
PRODUCT
LYB CAPACITY RANK
Ethylene
75.9 billion lbs.
2
Propylene
73.4 billion lbs.
3
Butadiene
5.5 billion lbs.
2
Polyethylene
44.8 billion lbs.
3
Polypropylene
18.9 billion lbs.
1
Source: IHS and LYB. Capacity ranking for LYB uses LYB reported capacity and 2014 average annual capacity as published
by IHS.
La Porte – Texas, U.S.A.
22
Olefins and Polyolefins–Europe, Asia &
International
Product Capacities
2014 Annual Capacities, as of year end*
OLEFINS
Ethylene
6.5 billion lbs.
2.9 million MT
Propylene
6.0 billion lbs.
2.7 million MT
Butadiene
0.7 billion lbs.
0.3 thousand MT
POLYOLEFINS
Polypropylene
12.6 billion lbs.
5.7 million MT
High-Density Polyethylene
4.2 billion lbs.
1.9 million MT
Low-Density Polyethylene
2.8 billion lbs.
1.3 million MT
2.6 billion lbs.
1.2 million MT
SPECIALTY POLYOLEFINS
Polypropylene Compounds Global
Catalloy Process Resins
600 million lbs.
272 thousand MT
PB-1 Resins
110 million lbs.
50 thousand MT
2,205 lbs. = 1 metric ton
* Represents total annual nameplate capacity, which includes approximately 1,650 million lbs. of ethylene; approximately 2,500 million lbs. of propylene; approximately 1,010 million lbs. of
high-density polyethylene; approximately 780 million lbs. of low-density polyethylene; approximately 4,960 million lbs. of polypropylene; and approximately 200 million lbs. of PP compounds of
nameplate capacity owned by third parties either through joint venture arrangements or other contractual relationships. In some situations, the Company and the third party have access to the
other’s capacity through certain arrangements.
Joint Ventures
Name
Location
J.V. Partners
LyondellBasell
Ownership
Product
2014 Capacity(1)
billion lbs.
SPC
SEPC
Al-Waha
HMC Polymers
Basell Orlen
Polyolefins
Al-Jubail Industrial
City, Saudi Arabia
Al-Jubail Industrial
City, Saudi Arabia
Tasnee
Tasnee, Sahara
Petrochemical
Company
25%
25%
Al-Jubail Industrial
City, Saudi Arabia
Sahara Petrochemical
Company and others
21%
Thailand
PTT
29%
Poland
Orlen
50%
million MT
Polypropylene
1.6
Propylene
1.0
0.7
0.5
PP Compounding
0.1
0.04
Ethylene
2.2
1.0
Propylene
0.6
0.3
HDPE
0.9
0.4
LDPE
0.9
0.4
Polypropylene
1.0
0.5
Propylene
1.0
0.5
Polypropylene
1.7
0.8
Propylene
0.7
0.3
Polypropylene
0.9
0.4
HDPE
0.7
0.3
LDPE
0.2
0.1
0.1
PolyPacific
Australia, Malaysia
Mirlex Pty. Ltd.
50%
PP Compounding
0.2
SunAllomer
Japan
Showa Denko,
Nippon Oil
50%
Polypropylene
0.9
0.4
PP Compounding
0.1
0.05
Daelim, SunAllomer
43%
Polypropylene
1.5
0.7
PolyMirae
South Korea
2,205 lbs. = 1 metric ton
23
Olefins and Polyolefins–Europe,
Asia & International
WESTERN EUROPE 2014
INDUSTRY AVERAGE
ANNUAL CAPACITY
PRODUCT
LYB CAPACITY RANK
billions lbs.
Ethylene
50.7
5
Propylene
46.5
7
Butadiene
5.5
2
Polyethylene
31.3
3
Polypropylene
21.0
1
Source: IHS and LYB. Capacity ranking for LYB uses LYB reported capacity and 2014 average annual capacity as published
by IHS.
Wessling – Germany
24
Intermediates and
Derivatives Segment
Key Advantages
Technological leader in the manufacture of propylene
oxide, using our proprietary propylene oxide/styrene
monomer and propylene oxide/tertiary butyl alcohol
processes
Second-largest global producer of propylene oxide and one
of the largest producers of styrene monomer, acetic acid
and vinyl acetate monomer worldwide
Ranked number one in global capacity, our oxygenated
fuel products are produced from chemical assets that
benefit from low cost natural gas and NGLs and their
linkage to global gasoline market trends
Vertically integrated facilities benefiting from optimization
opportunities along the entire value chain
Products such as methanol, acetyls, ethylene oxide and
derivatives benefit from low cost natural gas and NGLs
Historically, a segment with steady earnings
25
Intermediates and Derivatives Overview
LyondellBasell’s I&D business benefits from leading proprietary technologies for
propylene oxide and acetyls production. These provide us with a cost-advantaged
position for these products and their derivatives as well as growth opportunities
across the globe. We are an industry leader in oxyfuels (MTBE/ETBE), produced
from co-products of our propylene oxide process. End uses for I&D products
range from personal care products and medical applications to construction
materials and automotive components.
Key Products
I&D - Product End Uses*
Propylene Oxide
Acetyls
Propylene Oxide Co-products
– Methanol
– Acetic Acid
– Vinyl Acetate Monomer – Styrene Monomer
– TBA Derivative Isobutylene
Packaging
Consumer
Building & Construction
Ethylene Derivatives
Propylene Oxide derivatives
– Propylene Glycol
– Ethylene Oxide
– Propylene Glycol Ethers
– Ethylene Glycol
– Butanediol
– EO Derivatives
Transportation
Coatings
Textiles & Furnishings
Electronics
Oxyfuels
Fuels
*Estimates are based on I&D 2014 third party sales, and third party industry estimates of
products end uses.
Financial Highlights (USD millions)
I&D - Products Durability Breakdown*
2012
2013
2014
Revenues
$9,658
$9,472
$10,130
EBITDA
$1,621
$1,492
$1,459
EBITDA, excluding LCM
$1,621
$1,492
$1,552
17%
16%
15%
Durable
Non-durable
EBITDA excluding
LCM /revenues
*LCM stands for lower of cost or market. An explanation of LCM can be found under the
“Information Related to Financial Measures” section in the front of this Data Book.
26
Intermediates and Derivatives Production Process
Propylene Oxide Process
Oxygen
Ethylene
EB Unit
Benzene
Ethyl Benzene
Styrene
Oxidation
Normal
Butane
Isomerization
Propylene
Epoxidation
Isobutane
Tertiary Butyl
Alcohol
Propylene
Oxide
Dehydration
Isobutylene
MTBE/ETBE
Process
Isobutylene
PO/SM Process
o x yfuels process
PO/TBA Process
Propylene Glycol Production
Water
Propylene Oxide
Propylene Glycol
Dipropylene Glycol
Tripropylene Glycol
Hydration
Propylene Glycol Ethers Production
Methanol/Ethanol/Propanol
Propylene Oxide
Propoxylation
27
Propylene Glycol Monomethyl Ether
Dipropylene Glycol Monomethyl Ether
Tripropylene Glycol Monomethyl Ether
Methyl
Tertiary
Butyl Ether
or Ethyl
Tertiary
Butyl Ether
MTBE/ETBE
Ethylene Oxide/Ethylene Glycol
Oxygen
Ethylene
Water
Ethylene
Oxide
Ethylene
Glycol
Ethylene Glycol
Diethylene Glycol
Triethylene Glycol
Ethylene Oxide
Derivatives
Glycol Ether EB
Glycol Ether DB
Glycol Ether DM
Glycol Ether DE
Methanol/Ethanol/Propanol
Butanediol & Derivatives
Propylene
Oxide
Syngas
Allyl Alcohol
BDO
THF
THF
PTMEG
GBL
GBL
NMP
MPDiol
Allyl Alcohol
MPDiol
BDO
Acetyls
Natural Gas & Oxygen
Methanol
Ethylene
Synthesis Gas
Methanol
Acetic Acid
Carbon
Monoxide
28
VAM
Vinyl Acetate
Intermediates and Derivatives
Product Capacities
2014 Annual Capacity, as of year end(1)
PROPYLENE OXIDE*
Propylene Oxide
5.1 billion lbs.
2.3 million MT
Styrene Monomer
5.9 billion lbs.
2.7 million MT
Tertiary Butyl Alcohol
5.8 billion lbs.
2.6 million MT
Oxyfuels
75 million BPD
Propylene Glycol
1.0 billion lbs.
0.4 million MT
Propylene Glycol Ethers
540 million lbs.
0.2 million MT
Butanediol
465 million lbs.
0.2 million MT
Methanol
440 million gals.
1.3 million MT
Acetic Acid
1.2 billion lbs.
0.6 million MT
Vinyl Acetate Monomer
700 million lbs.
0.3 million MT
Ethylene Oxide
850 million lbs.
0.4 million MT
Ethylene Glycol
650 million lbs.
0.3 million MT
Other Ethylene Oxide
Derivatives – Ethers, Amines
220 million lbs.
0.1 million MT
Ethanol
PO CO-PRODUCTS
PO DERIVATIVES
ACETYLS
ETHYLENE DERIVATIVES
50 million gals.
2,205 lbs. = 1 metric ton
Joint Ventures
LyondellBasell
Ownership
Name
Location
J.V. Partners
U.S. PO
Joint Venture
Channelview, TX
Bayport, TX
Bayer
(3)
European PO
Joint Venture
Rotterdam,
The Netherlands
Bayer
(4)
PO/SM II LP
Channelview, TX
IPIC
Ningbo ZRCC
LCC Ltd.
Ningbo, China
ZRCC
La Porte Methanol
La Porte, TX
Linde
(3)
27%
85%
Product
Propylene Oxide
2014 Capacity(2)
1.5 billion lbs.
0.7 million MT
Propylene Oxide
0.7 billion lbs.
0.3 million MT
Styrene Monomer
1.5 billion lbs.
0.7 million MT
Styrene Monomer
0.6 billion lbs.
0.3 million MT
Propylene Oxide
0.6 billion lbs.
0.3 million MT
Styrene Monomer
1.3 billion lbs.
0.6 million MT
Methanol
0.2 billion gals.
(1) The annual capacities include approximately 2,300 million lbs. of propylene oxide; approximately 2,750 million lbs. of styrene monomer; approximately 110 million lbs. of propylene glycol
ethers; and approximately 30 million gals. of methanol production owned by third parties through joint venture or other contractual relationships. Ethylene oxide capacity presented is
ethylene oxide equivalent. Oxyfuels are produced from the propylene oxide/tertiary butyl alcohol process and the oxyfuels capacity is not additive to the tertiary butyl alcohol capacity.
(2) Unless otherwise noted, represents the joint venture’s total capacity and not our proportional capacity.
(3) The parties’ rights in the joint venture are based on off take volumes as opposed to ownership percentages. Bayer’s interest represents ownership of an in-kind portion of the propylene
oxide production of 1.5 billion lbs. per year. LYB takes, in-kind, the remaining propylene oxide production and all co-product (styrene monomer and tertiary butyl alcohol) production.
(4) The parties’ rights in the joint venture are based on off take volumes as opposed to ownership percentages. Bayer has the right to 50 percent of the propylene oxide and styrene monomer
production of our European PO joint venture.
29
Intermediates and Derivatives
Global Industry Capacity
Global Propylene Oxide
Global Capacity ~ 22 billion lbs./yr.
Dow
LyondellBasell
Royal Dutch Shell
Sumitomo Chem.
Sunkyong Ind.
BASF SE
Other
Global Oxyfuels
Global Capacity ~ 784 thousand bbl/day
LyondellBasell
SABIC
SINOPEC
CNPC
Royal Dutch Shell
Other
Source: IHS, based on 2014 average annual capacity.
Bayport – Texas, U.S.A.
30
Refining Segment
Key Advantages
Operational flexibility to process a wide array of feedstock
grades, including heavy and light high-sulfur crude oil
Among North America’s largest full conversion refineries
Strategically located on the U.S. Gulf Coast with
access to interstate pipelines and the Port of Houston,
providing access to multiple product markets
and lower‑cost feedstocks
31
Refining Overview
LyondellBasell’s Refining segment processes a wide range of cost-advantaged
crude oils, including heavy high-sulfur crudes, at one of North America’s largest
full-conversion refineries. Key products include reformulated gasoline, jet fuel,
ultra-low sulfur diesel and heating oil. Strategically located on the U.S. Gulf
Coast near interstate pipelines and the Port of Houston, the refinery benefits
from access to multiple product markets. LyondellBasell has recently broadened
the feedstock flexibility of the refinery to process crudes with increased gravity
ranges including lighter U.S. crude oil and heavy crude oil from Canada.
Key Products
Financial Highlights (USD millions)
Gasoline
Ultra Low-Sulfur Diesel
2012
2013
2014
$13,291
$11,698
$11,710
EBITDA
$481
$182
$65
EBITDA, excluding LCM
$481
$182
$409
4%
2%
3%
Revenues
Jet Fuel
Lube Oils
EBITDA excluding
LCM/revenues
*LCM stands for lower of cost or market. An explanation of LCM can be found under the
“Information Related to Financial Measures,” section in the front of this Data Book.
Houston Refinery – Texas, U.S.A.
32
Simplified Refining Process Flow
Naphtha
Kerosene
Heavy Crude
Crude
Distilling
Column
Diesel
Naphtha
Heavy Vacuum
Gas Oil
Gasoline Blending
Jet Fuel
Vacuum Resid
Multiple
HDS*
Units
Ultra Low-Sulfur Diesel
Distillate
Gasoline blending
Distillate
Light Cycle
Gas Oil
Dry Gas
Fluid Catalytic
Cracking Unit
Coker Naphtha
Propane/Propylene
Cokers
Light Coker
Gas Oil
Butane/Butene
Heavy Coker
Gas Oil
Gas Oil
Coke
Houston Refinery Only
Bitumen, Fuel Oil,
Bunkers
* HDS = Hydrodesulfurization
Typical crude yields are based on crude and refinery type.
Typical Products 1
Crude Oil
Refinery Type
Gasoline
Diesel/Jet
Other
Light
Simple Conversion
45%
30%
25%
Heavy
Simple Conversion
30%
15%
55%
Heavy
Full-Deep Conversion
45%
35%
20%
(1) Volume basis.
33
Refining Product Capacities
2014 Annual Capacities, as of year end
HOUSTON REFINERY
bbl/day
Primary Uses
Crude Distillation
268,000
N/A
Gasoline and Components
120,000
Automotive Fuel
Ultra Low-Sulfur Diesel
95,000
Diesel Fuel for Cars and Trucks
Jet Fuel
25,000
Aviation Fuel
Lube Oils
4,000
Industrial Lube Oils
Aromatics
7,000
Intermediate Chemicals
Houston Refinery – Houston, Texas
34
Technology Segment
Key Advantages
High-margin specialty business
Leading producer of polyproylene catalysts
Only licensor offering process technologies for the worldscale production of all propylene and polyethylene product
families, as well as a diversified portfolio of chemical
technologies. Approximately 300 licensed lines of various
technologies
35
Technology Overview
Our Technology segment develops and licenses industry-leading polyolefin
process technologies and a portfolio of selected chemical technologies. It also
provides associated engineering and other technical support services. The
segment develops, manufactures and sells polyolefin catalysts. We market our
process technologies and our polyolefin catalysts to external customers and also
use them in our manufacturing operations.
Key Products
Financial Highlights (USD millions)
Polypropylene Process
Selected Chemical
Technologies
– Spheripol
– Spherizone
– Metocene
Polyethylene Process
Technologies
– Lupotech
– Spherilene
– Hostalen
Technologies
– Trans4m
Olefins Conversion
– Glacido
Acetic Acid Technology
– Vacido
Vinyl Acetate Monomer
Technology
– Aromatics Extraction
Polyolefin Catalysts
– Avant
36
2012
2013
2014
Revenues
$498
$532
$497
EBITDA
$197
$232
$232
EBITDA/revenues
40%
44%
47%
Comprehensive Portfolio of Licensed Technologies
Polyolefins Technologies
Chemicals Technologies
Olefins Conversion
Spherizone
PP Process
Polypropylene
Superflex, Prodflex*, Trans4m
for Ethylene, Propylene, Butenes
Olefins Recovery
Spheripol
PP Process
Trans4m for Isoprene, DCPD,
Piperylenes, Isobutene, Butadiene
Aromatics Extraction
Metocene
PP Technology Upgrade
From Coke Oven / Pygas
Benzene, Toluene, Xylenes
Cracker
Lupotech
LDPE/EVA Process
Polyethylene
Acetyls
Spherilene
LL/HDPE Process
Glacido Acetic Acid Process,
Vacido Vinyl Acetate Monomer
(VAM) Process
Oxiranes & Derivatives
Hostalen
Multimodal HDPE Process
Propylene Oxide*, Butanediol
THF, NMP, GBL
* For LyondellBasell ventures only
37
38
Appendix
We make chemicals the
world counts on
39
Glossary of Acronyms
Acronym
Definition
Acronym
Definition
Bbl
Barrels
LCM
Lower of cost or market
BDO
Butanediol
LDPE
Low-density polyethylene
BPD
Barrels per day
Lb.
Pound of product
BTU
British thermal unit
LLDPE
Linear low-density polyethylene
COE
Cost of ethylene
Lt.
Light
DCPD
Dicyclopentadiene
MT
Metric ton
EAI
Europe, Asia & International
MTBE
Methyl tertiary butyl ether
EB
Ethyl benzene
NGL
Natural gas liquid
EBITDA
E arnings before interest, taxes,
depreciation and amortization
NMP
N-methyl pyrrolidone
O&P
Olefins & Polyolefins
PB-1
Polybutene-1
PE
Polyethylene
PG
Propylene glycol
PGE
Propylene glycol ethers
PO
Propylene oxide
PO/SM
Propylene oxide/
Styrene monomer
EG
Ethylene glycol
EO
Ethlene oxide
EOD
Ethylene oxide derivatives
EPS
Earnings per share
ETBE
Ethyl tertiary butyl ether
EU
Europe
EVA
Ethylene vinyl acetate
GAAP
Generaly accepted accounting
principles
PO/TBA
Propylene oxide/Teritary butyl
alcohol
Gal.
Gallon
PP
Polypropylene
GBL
Gamma-butyrolactone
SM
Styrene monomer
HDPE
High-density polyethylene
TBA
Tertiary butyl alcohol
HDS
Hydrosulfurization
THF
Tetrahydrofurane
I&D
Intermediates & Derivatives
USD
U.S. dollars
JV
Joint venture
VAM
Vinyl acetate monomer
40
Key Benchmark Prices and Margins for 2012-2014
For the Years Ended December 31
Olefins and Polyolefins – Americas
2012
2013
2014
94.15 98.06 92.91
111.70 107.31 96.92
Natural gas (USD per million BTUs)
2.90 3.78 4.51
U.S. weighted average cost of ethylene production (cents/lb.)
21.2 16.2 15.4
U.S. ethylene (cents/lb.)
48.3 46.7 48.0
U.S. polyethylene [high density] (cents/lb.)
62.3 70.5 77.0
U.S. propylene (cents/lb.)
60.4 68.7 70.9
U.S. polypropylene [homopolymer] (cents/lb.)
72.5 82.2 86.3
Western Europe weighted average cost of ethylene production (€0.01 per lb.)
38.9 34.7 29.2
Western Europe ethylene (€0.01 per lb.)
56.2 55.8 52.6
Western Europe polyethylene [high density] (€0.01 per lb.)
59.4 58.2 54.5
Western Europe propylene (€0.01 per lb.)
50.7 49.5 50.5
Western Europe polypropylene [homopolymer] (€0.01 per lb.)
58.3 57.9 59.9
118.2
79.1
94.0
Light crude oil - 2-1-1
12.86
12.89
13.32
Light crude oil - Maya differential
12.05
10.05
11.11
Benchmark Market Prices
West Texas Intermediate crude oil (USD per bbl)
Light Louisiana Sweet (LLS) crude oil (USD per bbl)
Olefins and Polyolefins – EAI
Benchmark Market Prices
Intermediates and Derivatives
Benchmark Market Margins
MTBE - Northwest Europe (cents per gal.)
Refining
Benchmark Market Margins (USD per bbl)
Source: IHS, Bloomberg, LyondellBasell Industries
Note - Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. All benchmark market prices represent the average of the full years values.
41
Income Statements for 2012-2014
For the Years Ended December 31
Millions of U.S. dollars, except earnings per share
2012
2013
2014
$44,315
$43,052
$44,714
1.037
1,010
894
45,352
44,062
45,608
39,595
37,940
38,939
Selling, general and administrative expenses
909
870
806
Research and development expenses
172
150
127
40,676
38,960
39,872
Operating Income
4,676
5,102
5,736
Interest expense
(655)
(309)
(352)
15
15
33
6
(15)
38
4,042
4,793
5,455
143
203
257
4,185
4,996
5,712
Provision for income taxes
1,327
1,136
1,540
Income from continuing operations
2,858
3,860
4,172
(24)
(7)
(4)
2,834
3,853
4,168
14
4
6
$2,848
$3,857
$4,174
Continuing operations
$5.01
$6.81
$8.04
Discontinued operations
(0.04)
(0.01)
(0.01)
$4.97
$6.80
$8.03
Continuing operations
$4.96
$6.76
$8.00
Discontinued operations
(0.04)
(0.01)
(0.01)
$4.92
$6.75
$7.99
Sales and Other Operating Revenues
Trade
Related parties
Operating Costs and Expenses
Cost of sales
Interest income
Other income (expense), net
Income from continuing operations before equity investments
and income taxes
Income from equity investments
Income from continuing operations before income taxes
Loss from discontinued operations, net of tax
Net Income
Net loss attributable to non-controlling interests
Net income attributable to the Company shareholders
Earnings (Loss) Per Share:
Net Income (Loss) Attributable to the Company Shareholders
Basic:
Diluted:
42
Consolidated Balance Sheets for 2012-2014
December 31
Millions of U.S. dollars, except shares and par value data
2012
2013
2014
$2,732
$4,450
$1.031
5
10
2
--
--
1,593
3,582
3,828
3,226
Assets
Current assets
Cash and cash equivalents
Restricted cash
Short-term investments
Accounts receivable:
Trade, net
Related parties
Inventories
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
184
202
222
5,075
5,279
4,517
570
830
1,054
12,286
14,599
11,645
7,696
8,457
8,758
397
421
384
1,583
1,629
1,636
383
64
44
591
605
566
Investments and long-term receivables:
Investment in PO joint ventures
Equity investments
Other investments and long-term receivables
Goodwill
Intangible assets, net
1,038
904
769
Other assets
246
619
481
Total assets
$24,220
$27,298
$24,283
Current maturities of long-term debt
$1
$1
$4
Short-term debt
95
58
346
2,440
2,822
2,239
Liabilities and Equity
Current liabilities:
Accounts payable:
Trade
Related parties
Accrued liabilities
845
750
825
1,157
1,299
1,554
558
580
469
5,096
5,510
5,437
Long-term debt
4,304
5,776
6,757
Other liabilities
2,327
1,839
2,122
Deferred income taxes
1,314
1,659
1,623
31
31
31
Deferred income taxes
Total current liabilities
Commitments and contingencies
Stockholders’ equity:
Ordinary shares, €0.04 par value, 1,275 million shares authorized,
486,969,402; 548,824,138; and 575,216,709 shares issued, respectively
10,351
10,382
10,387
Retained earnings
Additional paid-in capital
1,274
4,004
6,775
Accumulated other comprehensive income loss
(411)
96
(1,026)
Treasury stock, at cost, 91,463,726; 29,607,877; and 3,206,033 ordinary
shares, respectively
(106)
(2,035)
(7,853)
11,139
12,478
8,314
40
36
30
Total Company share of stockholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity
43
11,179
12,514
8,344
$24,220
$27,298
$24,283
Cashflow Statements for 2012-2014
For the Years Ended December 31
Millions of U.S. dollars
2012
2013
2014
$2,834
$3,853
$4,168
983
1,021
1,019
Asset impairments
22
--
--
Amortization of debt-related costs
58
21
20
Inventory valuation adjustment
--
--
760
(143)
(203)
(257)
147
186
156
715
(46)
177
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
Depreciation and amortization
Equity investments –
Equity income
Distribution of earnings, net of tax
Deferred income taxes
Changes in assets and liabilities that provided (used) cash:
Accounts receivable
(101)
(64)
358
441
(151)
(205)
(189)
275
(378)
Prepaid expenses and other current assets
(98)
(165)
156
Other, net
118
108
74
4,787
4,835
6,048
(1,060)
(1,561)
(1,499)
Payments for repurchase agreements
--
--
(425)
Proceeds from repurchase agreements
--
--
75
Purchases of available-for-sale securities
--
--
(3,439)
Proceeds from sales and maturities of available-for-sale securities
--
--
1,751
Changes in restricted cash
48
(5)
8
Inventories
Accounts payable
Net cash provided by operating activities
Cash Flows from Investing Activities
Expenditures for property, plant and equipment
Other, net
Net cash used in investing activities
(1)
(36)
(2)
(1,013)
(1,602)
(3,531)
--
(1,949)
(5,788)
(2,415)
(1,127)
(1,403)
3,000
1,472
992
(2,679)
--
--
Cash Flows from Financing Activities
Repurchases of Company ordinary shares
Dividends paid
Issuance of long-term debt
Repayments of long-term debt
Net proceeds from commercial paper
Payments of debt issuance costs
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash
--
--
262
(53)
(23)
(18)
2
38
48
(2,145)
(1,589)
(5,907)
38
74
(29)
Increase (decrease) in cash and cash equivalents
1,667
1,718
(3,419)
Cash and cash equivalents at beginning of period
1,065
2,732
4,450
$2,732
$4,450
$1,031
Interest paid
$665
$266
$343
Net income taxes paid
$261
$1,213
$1,167
Cash and cash equivalents at end of period
Supplemental Cash Flow Information
44
Reconciliation of Net Income to EBITDA
For the Years Ended December 31
USD millions
2011
2012
2013
2014
$2,140
$2,834
$3,853
$4,168
332
24
7
4
-
-
-
483
2,472
2,858
3,860
4,655
-
-
-
(483)
Income from Continuing Operations
2,472
2,858
3,860
4,172
Provision for Income Taxes
1,059
1,327
1,136
1,540
931
983
1,021
1,019
1,007
640
294
319
-
-
-
760
5,469
5,808
6,311
7,810
-
-
-
760
$5,469
$5,808
$6,311
$7,050
Net Income
(Income) Loss from Discontinued Operations
LCM Adjustments, After Tax
Income from Continuing Operations
Excluding LCM Adjustments
Less:
LCM Adjustments, After Tax
Depreciation and Amortization
Interest expense, net
Add:
LCM Adjustments, Before Tax
EBITDA Excluding LCM Adjustments
Less:
LCM Adjustments, Before Tax
EBITDA
45
Reconciliation of Free Cash
Flow to Net Cash Provided by
Operating Activities
For the Year Ended December 31
USD millions
2014
Free Cash Flow
$4,549
Add:
Capital Expenditures
1,499
Net Cash Provided by Operating Activities
$6,048
Reconciliation of Ratio of Total
Debt to EBITDA and EBITDA
Excluding LCM
December 31
USD millions
2012
2013
2014
Current Maturities of Long-Term Debt
$1
$1
$4
Short-Term Debt
95
58
346
Long-Term Debt
4,304
5,776
6,757
Total Debt
4,400
5,835
7,107
5,808
6,311
7,050
0.8x
0.9x
1.0x
-
-
760
$5,808
$6,311
$7,810
0.76x
0.92x
0.91x
Divided by:
EBITDA
Ratio of Total Debt to EBITDA
LCM Adjustment
EBITDA excluding LCM
Ratio of Total Debt to EBITDA excluding LCM
46
Reconciliation of EBITDA Excluding LCM
Adjustments to EBITDA - 2011 Through 2014
For the Years Ended December 31
USD millions
Incremental Change
from 2011
2011
2012
2013
2014
$2,137
$2,968
$3,573
$4,190
$2,053
865
548
839
1,410
545
EBITDA Excluding LCM Adjustments:
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI
Intermediates & Derivatives
1,410
1,621
1,492
1,552
142
Refining
977
481
182
409
(568)
Technology
191
197
232
232
41
Other
(111)
(7)
(7)
17
128
Total
5,469
5,808
6,311
7,810
2,341
Olefins & Polyolefins - Americas
-
-
-
279
279
Olefins & Polyolefins - EAI
-
-
-
44
44
Intermediates & Derivatives
-
-
-
93
93
Refining
-
-
-
344
344
Technology
-
-
-
-
-
Other
-
-
-
-
-
Total
-
-
-
760
760
2,137
2,968
3,573
3,911
1,774
Less:
LCM Adjustments:
EBITDA:
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI
865
548
839
1,366
501
1,410
1,621
1,492
1,459
49
Refining
977
481
182
65
(912)
Technology
191
197
232
232
41
Intermediates & Derivatives
Other
(111)
(7)
(7)
17
128
Total
$5,469
$5,808
$6,311
$7,050
$1,581
47
Reconciliation of Diluted EPS from Continuing
Operations Excluding LCM Adjustments to Diluted
EPS from Continuing Operations
For the Years Ended December 31
USD
2012
2013
2014
Diluted Earnings Per Share from Continuing
Operations Excluding LCM Adjustments
$4.96
$6.76
$8.92
-
-
0.92
$4.96
$6.76
$8.00
Less:
LCM Adjustments
Diluted Earnings Per Share from Continuing
Operations
Components of Cash and Liquid Investments
December 31
USD millions
2012
2013
2014
$2,732
$4,450
$1,031
Short-Term Investments
-
-
1,593
Repurchase Agreements
-
-
350
$2,732
$4,450
$2,974
Cash and Cash Equivalents
Cash and Liquid Investments
48
Reconciliation of Segment
EBITDA excluding LCM as a
Percent of Revenues
For the Years Ended December 31
USD millions
2012
2013
2014
$2,968
$3,573
$4,190
548
839
1,410
EBITDA Excluding LCM Adjustments:
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI
Intermediates & Derivatives
1,621
1,492
1,552
Refining
481
182
409
Technology
197
232
232
Other
(7)
(7)
17
Total
5,808
6,311
7,810
Olefins & Polyolefins - Americas
12,934
13,089
13,948
Olefins & Polyolefins - EAI
14,521
14,685
15,203
9,658
9,472
10,130
13,291
11,698
11,710
498
532
497
Other
(5,550)
(5,414)
(5,880)
Total
45,352
44,062
45,608
23%
27%
30%
4%
6%
9%
17%
16%
15%
4%
2%
3%
Technology
40%
44%
47%
Total
13%
14%
17%
Divided by Segment Revenues:
Intermediates & Derivatives
Refining
Technology
Segment EBITDA as a Percent of Revenues:
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI
Intermediates & Derivatives
Refining
49
A Heritage of Achievement
Our assets and technologies have a long history within the global chemical industry.
2015
• Five-year anniversary of public listing
2013
• Initiated share repurchases
• Initiated NGL-based Ethylene expansion program
• Upgraded to investment-grade rating
2012
• LyondellBasell added to S&P 500
2010
• LyondellBasell N.V. becomes a public company
• Listed on the NYSE as a publicly traded company
(ticker symbol: LYB)
Channelview – Texas, U.S.A.
50
LyondellBasell
Shareholder Information
Stock Exchange
LyondellBasell’s common stock is listed on the
New York Stock Exchange under the symbol
“LYB.”
London
4th Floor, One Vine Street
London W1J 0AH
United Kingdom
Tel: +44 (0) 207 220 2600
Website
Shareholders and other interested parties
can learn about LyondellBasell by visiting
www.lyb.com.
Rotterdam
Delftseplein 27E
3013 AA Rotterdam
Netherlands
Tel: +31 (0) 10 275 5500
Investor Relations Contact
Douglas J. Pike +1 713 309 4590
Corporate Governance
LyondellBasell’s Corporate Governance
Guidelines and related materials are available by
selecting “Investor Relations” on our website at
www.lyb.com.
Online Annual Report
LyondellBasell’s Annual Report is available
online at www.lyb.com.
Houston
LyondellBasell Tower, Ste. 300
1221 McKinney Street
Houston, TX 77010
P.O. Box 3646 (77253-3646)
United States
Tel: +1 713 309 7200
Registrar and Transfer Agent
Computershare Shareholder Services, Inc.
250 Royall Street
Canton, MA 02021
+1 877 456 7920 (U.S. Toll-Free)
+1 781 575 4337 (U.S. Toll/International)
www.computershare.com
www.lyb.com
Before using a LyondellBasell product, customers and other users should make their own independent determination that the product
is suitable for the intended use. They should also ensure that they can use the LyondellBasell product safely and legally (Material
Safety Data Sheets are available from LyondellBasell at www.lyb.com). This document does not constitute a warranty, express or
implied, including a warranty of merchantability or fitness for a particular purpose. No one is authorized to make such warranties or
assume any liabilities on behalf of LyondellBasell except in writing signed by an authorized LyondellBasell employee. Unless otherwise
agreed in writing, the exclusive remedy for all claims is replacement of the product or refund of the purchase price at LyondellBasell’s
option, and in no event shall LyondellBasell be liable for special, consequential, punitive, or exemplary damages.
You can find out more about us by visiting our website at: www.lyb.com
Avant, Catalloy, Glacido, Hostalen, Lupotech, Metocene, Spherilene, Spheripol, Spherizone, Trans4m and Vacido are trademarks
owned or used by LyondellBasell group companies. Avant, Hostalen, Spheripol and Spherizone are registered in the U.S. Patent and
Trademark Office.
LyondellBasell does not sell PB-1 for use in pipe applications intended for use in North America, and requires its customers not to sell
products made from PB-1 into pipe applications for North America.