Solid Strategy, Confident Execution CSFB Chemical Conference September 16, 2003 Kevin DeNicola Senior Vice President and CFO

1
Solid Strategy, Confident ExecutionCSFB
Chemical ConferenceSeptember 16, 2003Kevin
DeNicolaSenior Vice President and CFO

2
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 Companys
Annual Report on Form 10-K for the year ended
December 31, 2002, filed in March 2003, and
Lyondells Quarterly Report on Form 10-Q, filed
in August 2003. Reconciliations of GAAP financial
measures to non-GAAP financial measures are
provided at the end of this presentation.
3
Lyondell Has Built a Balanced Portfolio
Lyondell
Growth International Presence -- A leading
global producer of PO and derivatives -- Process
technology strength
ICD
Cash Generation -- Unique capability to refine
heavy crude oils -- Contractually stable
business strong cash flow generator
LCR
Commodity Leverage -- A leading North American
producer of ethylene, propylene and
polyethylene -- Low cost position based on
feedstock flexibility and scale
Equistar
4
Significant Integration Exists Among the
Operating Entities and With Our Partners
5
Leading Product Positions Create Significant
Earnings Leverage
Pre-Tax Leverage (?1/unit)
1
1
Product
Annual Capacity
Capacity Position
Intermediate Chemicals and Derivatives
2
st
Propylene Oxide
(
lbs)
3.9 billion
1
in North America
20MM
nd
2
in the world
st
Styrene Monomer (
lbs)
3.7 billion
1
in North America
14MM
rd
3
in the world
st
MTBE (bbl/day)
58,500
1
in North America
94MM
st
1
in the world
Equistar
nd
Ethylene (
lbs)
11.6 billion
2
in North America
116MM
th
5
in the world
3
nd
Propylene (
lbs)
5.0 billion
2
in North America
50MM
th
6
in the world
rd
Polyethylene (
lbs)
5.7 billion
3
in North America
57MM
th
4
in the world
1 Source CMAI, LYO capacities as of Jan 2003 2
Includes 1.5 billion pounds that represents
Bayers 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 Equistars Channelview
facility. 4 Based on 1/gal change
6
The Lyondell and Equistar Products Serve a Broad
Mix of End Users
ETHYLENE
PROPYLENE OXIDE
7
We Have Focused Our Efforts On Operational
Excellence
1998 - 2002 Improvement

Product Simplification
Downtime
Environment
Quality
8
Industry Leading Safety PerformanceEnterprise
Incident Rate (1)
2
1.5
1.18
0.99
RIR
0.8
1
0.52
0.37
0.5
0

• Enterprise Recordable Incident Rate (RIR) data
  does not include Lyondell-Citgo Refining (LCR)
• American Chemistry Council Best 2002 0.37
  Top Quartile 2002 1.0

9
Strong Operations Lead to Reduced Capital
Requirements
Days of Working Capital
Capital Spending
MM
1999
2002
Based on accounts receivable (including those
sold), inventories and accounts payable as of
6/30, and second-quarter days of sales.
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A Brief Portfolio Review

• ICD
• Propylene Oxide (PO) and Derivatives
• Styrene
• MTBE
• LCR
• Gasoline
• Heating oil
• Jet fuel
• Equistar
• Ethylene
• Polyethylene

11
The PO Industry Has Absorbed a Period of Capacity
Additions
Demand
Source SRI / Lyondell
12
Global Styrene Supply/Demand Balances Are
Relatively Tight
Source CMAI 2003 World Styrene Analysis
13
MTBE is a Source of Premium Clean Octane to the
19-20 MMB/D Global Gasoline Market
600
CAPACITY
U.S. Dehydro
DEMAND
500
CA
Dehydro Non -US
400
MB/D
SUPPLY
DEMAND
300
U.S.
Imports
Refinery /Olefins
CA
U.S. Dehydro
200
Non- U.S.
U.S.
Refinery /Olefins
100
PO
PO
Global Supply/Demand
US Market Balance
Source Dewitt
14
Component Premiums Above Gasoline
MTBE
Alkylate
Source Platts
15
Steps Toward Increased ICD Cash Flow
MM/Yr
Potential Cash Improvement From 1st Half, 2003

600
500
400
300
200
100
1st Half
MTBE Resolution
Convert PO/SM Purchases on Production
Sell-out at 1995 PO / TDI / SM Margins
Complete PO-11 Capital Spend
1st Half EBITDA Annualized 200MM
1999 PO / TDI SMMargins
16
LCR Important Cash Generator
Operating Reliability and Crude Deliveries Drive
Performance
MB/day
MM
2
1
Net Distribution To LYO, MM 33
(7) 16 76 20 24 59 17
2 22 49 7 67 68
1 4Q01 Scheduled maintenance turnaround 2 1Q03
Includes a 25MM write-off
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Improved LCR Operations Result in Stronger
Distributions

• Recent Current
• History Performance
• Safety, Recordable Injury Rate 1.8 0.35
• Unscheduled Unit Downtime, Days 400 lt50
• Headcount, Fulltime Equivalents 2400
  1500

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Equistar is a Leading Ethylene Producer
Top 5 North America
66
Nova 8

• 2 in North America
• Competitive position based on feedstock
  flexibility

ChevronPhillips10
40
ExxonMobil13
Exxon 7
Union Carbide7
Equistar15
Nova8
Dow9
Dow/Carbide20
Shell9
Source CMAI
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North American Supply/Demand Balance Is On Track
To Improve Significantly
Source CMAI / Equistar (September/2003)
20
Ethylene Demand Growth has Historically
Accelerated out of a Downturn
Ethylene Demand 1971-2004 United States
MM Lbs
Change GDP
30
55000
25
6
45000
20
13
15
35000
9
10
25000
5
15000
0
-5
5000
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
GDP AGR
Ethylene consumption
Source DRI ChemData
21
Middle Eastern Capacity is Required to Meet
Global Demand
Source CMAI (August 2003)
22
Liquid Cracking Provides an Advantage vs. Ethane
Raw Materials
Equistar Capability
NGL
37
Liquid
63
N. American Industry
(ex. Equistar)
Liquid
22
2003 YTD
NGL
78
Source CMAI and Lyondell
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Cost Advantage of Liquid Feedstock Versus Ethane
Equistar Impact - 1/lb equals 70MM/yr
Cents/lb
2003
2002
COE Cost of ethylene production
Source ChemData
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The Chemical Product Chains All Offer Upside in a
Recovery
Relative Raw Material Margin Range, 1994-2002 100
Period Average
HDPE
PG
Styrene

• 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

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Enterprise Earnings Capability Far Exceeds Recent
Trough Results
Cycle EBITDA Potential
Recession / Trough
Pre-Recession
(MM)
Peak
3,000
2,500
1.35 / share
2,000
7.45 / share
1,500
2002 Proportional Interest, Dividends Capital
1,000
500
0
2002
1999/2000
1995
1988
Margins¹
Margins¹
Margins¹
LCR
ICD
Equistar
1 Chem Data/CMAI industry margins conditions for
ICD and Equistar products (ex. MTBE) applied to
current capacities and ownership, LCR 2002
EBITDA, includes PO-11 Note Assumes current
capital structure 160MM shares
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Our Financial Strategy is Focused and Unchanged

• Maintain Sufficient Liquidity
• Repay Debt

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We Have Maintained Significant Liquidity
06/30/2003
12/31/2002


Equistar
Lyondell
Equistar
Lyondell
143MM
327MM
27MM
330MM
Cash ST Investments
354MM
350MM
450MM
350MM
Revolver 1
497MM
677MM
477MM
680MM
Total Liquidity
1 represents the total commitment and has not
been reduced by amounts committed against letters
of credit (12/30/02 LYO-49MM, Equ-16MM)
(6/30/03 LYO-53MM, Equ-17MM)
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We Have Actively Managed Our Maturity Profile
Debt Maturities
Pre-Payable Debt
(MM)
(MM)
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De-leveraging Will Benefit All Stakeholders

• Impact of Lyondell debt reduction at constant
  capitalization1
• Debt Reduction
• 1B 2B
• Debt to capitalization 54 36
• Avoided interest expense 100MM/Yr 200MM/Yr
• Earnings improvement 40/share 80/share
• Share price improvement at
• constant capitalization 6/share 12/share

1 Capitalization debt book value of equity
minority interest Based on 160 MM shares
outstanding
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There are Striking Similarities Between 1993 and
2003
1991-1997 or 2001-2007?
Coming out of the U.S. recession of 1991
1992 and 1993 confirmed the worse fears of
pessimists
U.S. hoping to sustain economic growth of late
1993
Europe headed to moderate economic recovery
Japan waiting for some sign of recovery
Uncertainty and apprehension for 1994 and
1995the most dominant emotions in light olefins
Iraq will comply with UN edict andexport crude
Reinvestment reached in the U.S. by the end of
decade
Source 1993 World Light Olefins Analysis, CMAI
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Interpretations of the Global Situation Created
Forecasts Very Similar to Those Being Made Today
1991-1997 or 2001-2007?
Demand forecasts

• Annual rate of 4.9 per year 1992-1998 period

• Worldwide growthduring 1993 to 2

• New light olefins in Asia/Pacific and
  Africa/Middle East will severely impact exports

Operating rate forecasts

• Slowly improve from 85 in 1993 to 89 in 1998

• Between 1993 and 199717.9 MM tons capacity
  will be added to 1993 total

• In the U.S. between 1990 and 1992 three new
  world scale plants

Source 1993 World Light Olefins Analysis, CMAI
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External Factors Can Quickly Alter the Outlook
and Results Within the Ethylene Industry
Forecast Versus Actual Margins, /lb

• 1994 1995 1996 1997 1998
• Forecast 8.9 8.0 8.5 10.0 12.0
• Actual 14.3 18.9 10.4 16.2 11.4

Actual Outcome Ethylene margins peaked in
1994/1995 Under the current Equistar structure,
1994-1999 margins/conditions would equate to
approximately 1B of EBITDA annually.
Source World Light Olefins Analysis, CMAI
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