Merrill Lynch Chemical Conference Robert Blakely Chief Financial Officer March 20, 2002

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Merrill LynchChemical ConferenceRobert
BlakelyChief Financial OfficerMarch 20, 2002


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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 future
global economic conditions, access to capital
markets, industry production capacity and
operating rates, technological developments, the
supply demand balance for the products produced
by the Company and its joint ventures,
competitive products and pricing pressures,
increases in raw material and/or energy costs,
changes in governmental regulations 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, 2001, which
was filed in March 2002.
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Roadmap to Success

• Executing our Strategic Plan
• Prudently Managing Quality Assets
• Delivering Results in Difficult Environment
• Positioned for Significant Returns in Up-Turn

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Lyondell Operates in 3 Major Businesses

• Lyondell Chemical Company - Intermediate
  Chemicals and Derivatives
• Worlds leading producer of PO and derivatives
• 100 Ownership
• Equistar - Petrochemicals and Polymers
• A leading North American producer of ethylene,
  propylene and polyethylene
• Low cost position based on feedstock flexibility
  and scale
• 41 Ownership
• LCR - Refining
• Unique capability to refine heavy crude oils
• Contractually stable business strong cash flow
  generator
• 58.75 Ownership

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Strategy for Value Creation
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Businesses are Integrated and Costs Optimized
Lyondell Methanol Co.
Intermediate Chemicals Derivatives
Markets
MTBE
Methanol
Propylene glycol / ethers
Antifreeze / deicers Resins / solvents
PO / TBA
Equistar
Propylene oxide
Pharmaceutical Coatings Plastics
Butanediol / derivatives
PO / SM
Propylene
Polypropylene
SM

• Polyurethanes
• Auto seating
• Furniture
• CASE

TDI
Ethylene
Polyethylene

• Consumer products
• Grocery sacks
• Toys
• Packaging

EO / EG
LCR
Polyester Antifreeze
Benzene
Automotive
Toluene
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Leading Positions in All Key Products
ICD
Equistar
Source CMAI, LYO capacities as of 1/1/02
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Sustainable Advantages in Key Businesses

• Refining Strong Cash Generation
• Heavy Crude Processing Capability
• Unique Deemed Margin Contract
• Improved Operational Reliability
• ICD PO Cost and Technology Leadership
• Proprietary Process Technology Leader
• Global Production Base
• Important Derivative Positions
• Petrochemicals Low Cost Advantage
• Feedstock flexibility historically provides 4 cpp
  variable cost advantage

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Feedstock Flexibility is a Key Advantage
Equistar Capability
Liquid Cracking Variable Cost Advantage
NGL
37
Ethane - Light Naphtha Cost of Ethylene Spread
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Prior 15 Yr Average
Liquid
7
63
6
5
N. American Industry
4
/lb ethylene
(ex. Equistar)
Liquid
3
22
2
1
0
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
NGL
Source ChemData,
78
Source CMAI and Lyondell.
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Reduced Fixed Costs
11
Reduced Working Capital
Days of Working Capital
2001 Cash from Working Capital LYO 128MM
Equistar 282MM
Includes elimination 130 million AR
securitization
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Prudently Managing Assets
Disciplined Capital Expenditures
PO11 Spending
(MM)
13
Minimal Near Term Debt Maturities
Debt Maturity Schedule
1
1 LYO Revolver Expires
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Significant Liquidity
1
1
1 excludes amounts committed against letters of
credit at December 31, 2001
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Debt Reduction Still a Priority
Total Lyondell Debt
3.1 B reduction
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Equistar Transactions

• Lyondell Sells Package of Securities to
  Occidental
• 30 34 million shares of Series B stock
• 5 million, 5 year 25 warrants
• Payments equivalent to 7.38 of 02 03
  Equistar distributions up to 35 million
• Lyondell buys Occidentals 29.5 share of Equistar

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Impact of Occidental Transaction on Cash
Generation and Earnings Potential
Impact of 0.01/lb margin increase on Lyondell EPS
Before After Ethylene 0.24 0.32 Polymers 0.1
4 0.19
Impact of potential accelerated debt reduction .
. .
Normalized Equistar EBITDA1 1.0
billion Increase in proportional Equistar
EBITDA 300 million Impact of 300 million of
Lyondell debt reduction 0.12/share
1 - Pro forma assuming 1993 (trough) and 1995
(cyclical upturn) CMAI cash margins, Equistar
product capacities as of 2002 and up to 280
million of cost savings resulting from Equistar
formation.
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Past Demand Contractions Were Followed by Periods
of Strong Growth
Source DRI ChemData
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Roadmap to Success

• Executing our Strategic Plan
• Prudently Managing Quality Assets
• Delivering Results in Difficult Environment
• Positioned for Significant Returns in Up-Turn

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Merrill LynchChemical ConferenceRobert
BlakelyChief Financial OfficerMarch 20, 2002