Financial Performance & Strategy - The company's Cash Improvement Plan is on track to achieve $600 million of incremental cash flow for 2025[24, 31, 36, 71] - The company is targeting $200 million in trade working capital reductions and $200 million in fixed cost reductions by the end of 2025[24] - 2025 CAPEX guidance revised down $200 million from $1.9 billion to $1.7 billion, and 2026 CAPEX is expected to be $1.4 billion[24] - The company returned over $500 million to shareholders through dividends and share repurchases during 2Q25[26, 36] - The company has $1.7 billion in cash and cash equivalents as part of $6.4 billion of available liquidity as of June 30, 2025[36] Portfolio Optimization - The company announced the planned sale of four European O&P assets[10, 13, 36, 51, 52, 71] - Portfolio optimization improves the company's cost advantage, positioning it well to serve markets from its cost-advantaged asset base in North America and the Middle East[14] - The company is rebalancing its global footprint toward cost-advantaged regions[71] Market Dynamics & Outlook - US/Canada domestic polyethylene sales grew 3.5% vs 1Q25[49] - The company is targeting approximately 85% operating rates in 3Q25 for O&P Americas and approximately 75% for O&P EAI[49, 52] - The company's 2Q25 last twelve months (LTM) cash conversion was 75%[40]

Financial Data and Key Metrics Changes - The company is targeting significant cost savings in 2025 and has reduced capital spending for 2026, indicating a cautious outlook on macroeconomic conditions [7][8] - There is an expected mid-single-digit drop in demand for the second half of the year, influenced by trade dynamics and seasonality [12][16] - The company anticipates a utilization headwind of approximately $75 million to $100 million in the second half of the year due to inventory reduction efforts [13][14] Business Line Data and Key Metrics Changes - The chemical and materials business is facing challenges due to overcapacity from China, impacting profitability [20][21] - The Methanalysis unit is performing well, with expectations of improved profitability through debottlenecking investments [30][32] - The fibers business is experiencing a decline due to tariff impacts and market demand issues, with a projected $20 million headwind from tariffs [56][91] Market Data and Key Metrics Changes - The automotive market is expected to see low single-digit declines in the back half of the year, influenced by tariff concerns and consumer behavior [50][51] - The consumer durables market is particularly affected by trade dynamics, leading to cautious purchasing behavior among customers [41][42] - The textile market has slowed down significantly due to tariffs, impacting overall demand [57][58] Company Strategy and Development Direction - The company is focusing on cash generation and cost management in response to current market uncertainties [13][17] - There is a strategic emphasis on improving the structural strength of the business and enhancing profitability through targeted investments [22][24] - The company is exploring alternative options for its Methanalysis investments, indicating a flexible approach to capital allocation [34][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant uncertainty in demand due to trade dynamics and macroeconomic factors, emphasizing the need for cautious forecasting [10][15] - There is optimism about potential stabilization in 2026, driven by pro-growth policies and resolution of trade issues [16][17] - The management is committed to maintaining cost discipline and optimizing working capital to navigate the current challenges [45][62] Other Important Information - The company is experiencing volatility in customer demand, particularly in consumer discretionary markets, which are highly sensitive to trade conditions [70][72] - The company has a strong focus on maintaining price-cost stability in its AFP business, which has contributed to its performance [55][56] Q&A Session Summary Question: How representative of the second half should be when thinking about trough earnings levels? - Management indicated that the second half is heavily impacted by trade situations, making it a poor indicator of overall company performance [8][10] Question: How far along is the investment in the Metapasys unit? - Management confirmed that the investment is progressing well, with expectations of significant profitability improvements [18][30] Question: What triggered the change in customer dialogue in July? - Management noted that the trade pause allowed customers to reassess their inventory and demand outlook, leading to a more cautious approach [39][41] Question: Can you provide more color on the automotive end markets? - Management highlighted that while the aftermarket performed well, the interlayer business faced challenges due to production moderation in response to tariffs [49][50] Question: What is the current state of tariffs and their impact on the fibers business? - Management stated that tariffs have significantly impacted the textile market, leading to a cautious outlook for the fibers segment [56][58] Question: What are the expectations for cash flow next year? - Management indicated that while cash flow may decrease due to pulling forward cash flow this year, they expect to build off a stable platform for future growth [62][63]

Financial Data and Key Metrics Changes - The company is targeting a reduction in capital spending for 2026, indicating a focus on cost savings in 2025 as well [6][14] - There is an expected mid-single-digit drop in demand for the second half of the year, influenced by trade dynamics and seasonality [12][15] - The company anticipates a utilization headwind of approximately $75 million to $100 million in the second half of the year due to inventory reduction efforts [13][16] Business Line Data and Key Metrics Changes - The Chemical Intermediates segment is expected to improve by over $30 million, while the Specialty and Fibers segments are projected to decline by a similar amount [70] - The AFP business saw a 4% year-over-year price increase primarily driven by cost pass-through contracts [54] - The Fibers business is facing a $20 million headwind due to tariffs and a $20 million asset utilization headwind, alongside higher energy costs [95][96] Market Data and Key Metrics Changes - The automotive market is expected to see a low single-digit decline in the back half of the year, with challenges stemming from tariff impacts and consumer behavior [50][51] - The textile market has slowed down significantly due to tariffs, impacting demand and leading to a cautious approach from customers [57][58] - The company is experiencing accelerated demand in certain areas, particularly in mechanical recycling for food-grade packaging applications [35] Company Strategy and Development Direction - The company is focusing on cash generation and cost management in response to current market uncertainties [13][16] - There is an emphasis on improving the structural strength of the business, particularly in the chemical and materials segments [21][22] - The company is exploring debottlenecking investments to enhance operational efficiency and profitability in its methanol system plant [30][31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the chaotic nature of the current operating environment, driven by trade dynamics and consumer caution [12][14] - There is a belief that stability may return in 2026, contingent on resolving trade issues and improving economic conditions [15][16] - The management remains cautious about predicting demand due to ongoing uncertainties in the market [40][81] Other Important Information - The company is targeting additional cost cuts of $75 million to $100 million, which will be detailed in plans for the second half of the year [103] - The methanol system plant is performing well, with expectations for increased profitability as operational efficiencies are realized [30][31] Q&A Session Summary Question: Can you help us understand how representative the second half should be when thinking about trough earnings levels? - Management indicated that the second half is heavily impacted by trade situations, making it a poor measure of overall company performance [7][10] Question: How far along is the investment in the Metapasys unit, and what gives confidence in profitability? - Management discussed ongoing challenges in the chemical and materials business but expressed optimism about improving profitability through strategic investments [20][24] Question: What triggered the change in customer dialogue in July? - Management noted that the trade pause allowed customers to reassess their inventory and demand, leading to a more cautious approach [41][42] Question: Can you provide more color on the weakness in the automotive end markets? - Management confirmed that while the aftermarket performed well, the interlayer business faced challenges due to production moderation in response to tariffs [49] Question: What is the outlook for the Fibers business next year? - Management indicated that the Fibers business is facing headwinds this year but expects stabilization and potential recovery in the following year [94][100]

European Asset Sale June 5, 2025 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 of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," ...

Group 1: Valuation and Market Position - Enterprise Products Partners LP (EPD) is currently trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.28x, which is below the industry average of 11.49x and significantly lower than midstream competitors like Kinder Morgan Inc. (KMI) at 14.18x and Enbridge Inc. (ENB) at 15.14x [1][2] Group 2: Business Resilience - EPD is largely immune to market uncertainties related to tariffs, as it has secured 85% to 90% of its LPG export capacity through long-term take-or-pay agreements with international counterparties, providing predictable revenue sources [3][4] - The company’s contracts are primarily with international trading companies, insulating it from geopolitical risks such as tariffs or sanctions, as traders can reroute barrels based on global demand [4] Group 3: Asset Portfolio and Growth Potential - EPD has a diversified asset portfolio with over 50,000 miles of pipelines and a storage capacity of 300 million barrels, which supports stable fee-based revenues from long-term contracts [5] - The company has a backlog of $7.6 billion in major capital projects, which will generate additional fee-based earnings and stable cash flows for unitholders [6] - EPD has achieved over two decades of distribution growth, with a current distribution yield of 6.7%, slightly above the industry average of 6.4% [7] Group 4: Operational Outlook - EPD connected more than 1,000 wells in the Permian Basin last year and plans to add a similar number this year, which will increase the volume of oil, natural gas, and natural gas liquids transported through its pipelines [15][16] - Even if oil production remains flat, the volume of natural gas and NGLs will continue to grow due to the byproducts from oil wells, generating incremental cash flows for the partnership [16] Group 5: Stock Performance - Over the past year, EPD's stock price has increased by 19%, outperforming the industry's composite stocks, which improved by 18.3% [17]