bc 03252010 pres

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R d W lf l NOVA Chemicals Randy Woelfel Chief Executive Officer Todd Karran Todd Karran Senior Vice President, Chief Financial Officer and Treasurer Barclays Capital High Yield Bond Barclays Capital High Yield Bond and Syndicated Loan Conference March 25 2010 March 25, 2010

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Page 1: Bc 03252010 pres

R d W lf l

NOVA ChemicalsRandy WoelfelChief Executive Officer

Todd KarranTodd KarranSenior Vice President, Chief Financial Officer and Treasurer

Barclays Capital High Yield BondBarclays Capital High Yield Bondand Syndicated Loan Conference

March 25 2010March 25, 2010

Page 2: Bc 03252010 pres

Forward-Looking Information

This material and the comments made by our management contain forward-looking information with respect to NOVA Chemicals Corporationalone or together with its subsidiaries and affiliates, depending on the context in which such statements are used. By its nature, forward-lookinginformation requires us to make assumptions and is subject to inherent risks and uncertainties. There is significant risk that predictions,forecasts conclusions and projections will not prove to be accurate that our assumptions may not be correct and that actual results may differforecasts, conclusions and projections will not prove to be accurate, that our assumptions may not be correct and that actual results may differmaterially from such predictions, forecasts, conclusions or projections. We caution you not to place undue reliance on our forward-lookinginformation as a number of factors could cause actual results, conditions, actions or events to differ materially from the targets, expectations,estimates or intentions expressed in the forward-looking information. The words “believe,” “expect,” “plan,” “intend,” “estimate,” or “anticipate”and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would,” and “could” often identify forward-lookinginformation. Specific forward looking information contained in this material include, among others, statements regarding: IPIC’s vision to be aglobal polyolefins leader; IPIC’s growth plans; our strategic fit within the IPIC family; reasons to invest in NOVA Chemicals; our competitiveg p y g p g y padvantages; general economic conditions; our structurally advantaged feedstock supply; our beliefs about ethane supply; our beliefs aboutfeedstock trends and the crude oil to natural gas ratio; our beliefs about regional ethylene cash costs and feedstocks; our expectationsregarding global polyethylene supply/demand and global demand versus global industrial production growth; our expectations and beliefsregarding polyethylene trade flow and export pricing; and our financing plans and plans for current maturities. With respect to the forward-looking information, we have made assumptions regarding, among other things: future oil, natural gas, natural gas liquids and benzene prices;our ability to obtain raw materials; our ability to market products successfully; the impact of increasing competition; and our ability to obtainfinancing on acceptable terms Some of our assumptions are based upon internal estimates and analyses of current market conditions andfinancing on acceptable terms. Some of our assumptions are based upon internal estimates and analyses of current market conditions andtrends, management plans and strategies, economic conditions and other factors and are necessarily subject to risks and uncertainties inherentin projecting future conditions and results. Some of the risks that could affect our future results and could cause results to differ materially fromthose expressed include: commodity chemicals price levels (which depend, among other things, on supply and demand for these products,capacity utilization and substitution rates between these products and competing products); feedstock availability and prices; operating costs;terms and availability of financing; technology developments; starting up and operating facilities using new technology; realizing synergy andcost savings targets; our ability to implement our business strategies; meeting time and budget targets for significant capital investments;g g ; y p g ; g g g g p ;avoiding unplanned facility shutdowns; safety, health, and environmental risks associated with the operation of chemical plants and marketing ofchemical products, including transportation of these products; public perception of chemicals and chemical end-use products; the impact ofcompetition; changes in customer demand; changes in, or the introduction of new laws and regulations relating to our business, includingenvironmental, competition and employment laws; loss of the services of any of our executive officers; uncertainties associated with worldeconomies; terrorists attacks; severe weather events; and other risks detailed from time to time in our publicly filed disclosure documents andsecurities commission reports. Our forward-looking information is expressly qualified in its entirety by this cautionary statement. In addition, thef d l ki i f ti i d l f th d t f thi t i l d t i d b li bl l d t k bli ti tforward-looking information is made only as of the date of this material, and except as required by applicable law, we undertake no obligation toupdate publicly this forward-looking information to reflect new information, subsequent events or otherwise.

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NOVA ChemicalsOverviewOverview

NOVA Chemicals is focused on plastics and chemicals that make everyday life saferchemicals that make everyday life safer, healthier and easier

Our 2,500 employees develop and manufacture materials for customers worldwide that produce consumer, industrial and packaging products

Our innovation and technology create value for gyour customers, their products and the markets they serve

NOVA Chemicals is owned by the InternationalNOVA Chemicals is owned by the International Petroleum Investment Company (IPIC) of the Emirate of Abu Dhabi

2

Page 4: Bc 03252010 pres

NOVA ChemicalsOwnershipOwnership

International Petroleum Investment Company (IPIC)IPIC

• A sovereign wealth investment arm of the Government of the Emirate of Abu Dhabi

• Invested portfolio value approximately $30 billion• Aa3/AA/AA rated

Will l th ti f it i t t t f lfill it• Will leverage the expertise of its investments to fulfill its vision of becoming a global polyolefins leader

NOVA Chemicals • IPIC’s first 100% acquisition• Part of IPIC’s vision of becoming a global polyolefins leader• Excellent strategic fit

3

• Excellent strategic fit

Page 5: Bc 03252010 pres

IPIC Investments

NOVA Chemicals Corporation BOREALIS AG (BOREALIS) OMV Aktiengesellschaft (OMV) Abu Dhabi National Chemicals CoNOVA Chemicals CorporationPetrochemicals HDQ: CanadaShareholding: 100%

BOREALIS AG (BOREALIS)Petrochemicals HDQ: AustriaShareholding: 64%

OMV Aktiengesellschaft (OMV)Integrated OilHDQ: AustriaShareholding: 20%

Abu Dhabi National Chemicals Co.Chemical IndustryHDQ:  Abu DhabiShareholding: 40%

Hyundai Oilbank Co., Ltd. (HDO)Oil Refining and MarketingHDQ: KoreaShareholding: 70%

Gulf Energy Maritime (GEM) PJSCClean Hydrocarbons ShippingHDQ: UAEShareholding: 30%

Pak‐Arab Refinary Ltd.Oil Refining / Products PipelineHDQ: PakistanShareholding: 30%

Aabar Investments PJSCInvestment CompanyHDQ: Abu DhabiShareholding: 71.23%

Oman Polypropylene LLCPolyolefinsHDQ: OmanShareholding: 20%

Compañia Española De Petroléos, S.A.Integrated Oil / PetrochemicalsHDQ: SpainShareholding: 47%

Cosmo Oil Co., Ltd.Oil Refining and MarketingHDQ: JapanShareholding: 20.76%

Oil Search LimitedOil & Gas – LNGHDQ: AustraliaShareholding: 18%

Energias de Portugal, S.A.UtilitiesHDQ: PortugalShareholding: 4%

MAN FerrostaalIndustrial ServicesHDQ: GermanyShareholding: 70%

Arab Petroleum Pipeline CompanyCrude Oil PipelineHDQ: EgyptShareholding: 15%

Oasis International Power LLCPower UtilitiesHDQ: Abu DhabiShareholding: 18%

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Page 6: Bc 03252010 pres

NOVA ChemicalsBusiness StructureBusiness Structure

Olefins/Polyolefins Performance Styrenics

INEOS NOVA Joint Venture(1)

North AmericanEthylene North American EPS

North American Styrene Monomer

and SPS

Polyethylene Styrenic Performance European SPS and Polyethylene Resins EPS

Co-products EPS-Based Ventures

2009 R 2009 R 2009 R (2)2009 Revenue:$2.7B U.S.

2009 Revenue:$0.3B U.S.

2009 Revenue(2):$1.2B U.S.

1. NOVA Chemicals owns 50% of INEOS NOVA2. NOVA Chemicals’ 50% share. 5

Page 7: Bc 03252010 pres

NOVA ChemicalsExamples of Polyethylene ApplicationsExamples of Polyethylene Applications

6

Page 8: Bc 03252010 pres

Global Polyethylene Demand vsGlobal Industrial Production Growth

2008%PE Demand (B lb)IP Growth

Global Industrial Production Growth

160

180

200

4%

6%

8%

100

120

140

2%

0%

2%

40

60

80

-6%

-4%

-2%

Global IP GrowthGlobal PE Demand

0

20

40

-10%

-8%

19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Global PE Demand

990991992993994995996997998999000001002003004005006007008009010011012013014

Source: ChemSystems, IHS Global Insight, NOVA Chemicals 7

Page 9: Bc 03252010 pres

Global PolyethyleneSupply and Demand Growth

8 9%

(billion pounds)(billion pounds)

Supply and Demand Growth

8.9%

12

16

12

16

Demand Growth

2.3%4

8

4

8

-4

0

-4

0

-8-82005 2006 2007 2008 2009 2010 2011 2012 2013 2014

North America Europe Middle East Asia Latin America Other

Source: ChemSystems, CMAI, NOVA Chemicals 8

Page 10: Bc 03252010 pres

Energy and FeedstockCrude Oil to Natural Gas Ratio

20125

Ratio, Gas PriceCrude Oil

C d G R i WTI C d H H b G

Crude Oil to Natural Gas Ratio

16

18

100

Crude to Gas Ratio WTI Crude,$/bbl

Henry Hub Gas,$/mmbtu

10

12

14

75

6

850

0

2

4

0

25

002005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: CMAI, Platts, NYMEX, NOVA Chemicals 9

Page 11: Bc 03252010 pres

Regional Ethylene Cash Costs and Feedstock Useand Feedstock Use

40cpp North America (2014)

2628

35

30 Light76%

Heavy24%

20

3

10ROW (2014)

0Middle East

EthaneU.S. Ethane Saudi Arabia

PropaneU.S., Europe, Asia Naphtha

Light38%Heavy

62%

Source: CMAI, NOVA Chemicals; Data is from March 2009 through February 2010 10

Page 12: Bc 03252010 pres

Polyethylene Trade Flow

Europe: Manufacturing

U.S. and Canada: Manufacturing and Sales in North America

and Sales in Europe

Asia: Manufacturing and Sales in Asia

Sales in North America and Export to Mexico, Latin/South America, Asia and Europe Middle East:

Manufacturing in The Middle East and Export to Asia, Europe and Latin/South America

11

Page 13: Bc 03252010 pres

NOVA ChemicalsReasons for InvestmentReasons for Investment

Focused portfolio of products

Oriented to more resilient market segments

Technology platform that fits the markets we choose to serve

Location of assets leads to advantages

Western Canada - Access to advantaged feedstocks

Eastern Canada - Access to diverse sources of feedstock and proximity to customers

Challenges in the near term, but positive outlook in medium- to g , plong-term

Recovery from 2008/2009 on the horizon

Part of a strong global family with goal to be a leader in the industry

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Page 14: Bc 03252010 pres

NOVA ChemicalsRefinancing and Financial Results

13

Page 15: Bc 03252010 pres

Maturity ProfileAs of July 6 2009

$1,000

As of July 6, 2009

M USD

75

150

$700

$800

$900 7.875% Notes 2025 L+312.5bps Fr Notes 2013

6.5% Notes 2012 EDC Facility

7.85% Note 2010 Total Return Swap

265

130

$500

$600

$700AR Sec Program Bilaterals

Secured Revolver

265

$300

$400

350250

400 400

100$0

$100

$200

Cdn

$03Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2013 2014 2015 2016 2017 2018 2019 2025

14

Page 16: Bc 03252010 pres

Maturity ProfileAs of October 31 2009As of October 31, 2009

$1,000M USD

75

$700

$800

$900 8.625% Sr. Note 2019 8.375% Sr. Note 2016

7.875% Notes 2025 L+312.5bps Fr Notes 2013

6.5% Notes 2012 7.85% Note 2010

265

130

$500

$600

$700 Total Return Swap AR Sec Program

Bilaterals Secured Revolver

265

$300

$400

350250

400 400

100

350 350

$0

$100

$200

Cdn

$04Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2013 2014 2015 2016 2017 2018 2019 2025

15

Page 17: Bc 03252010 pres

Maturity ProfileAs of November 30 2009As of November 30, 2009

$1,000M USD

$700

$800

$900 8.625% Sr. Note 2019 8.375% Sr. Note 2016

7.875% Notes 2025 L+312.5bps Fr Notes 2013

6.5% Notes 2012 7.85% Note 2010

$500

$600

$700 Total Return Swap AR Sec Program

Bilaterals Secured Revolver

75 400$300

$400

350

95 100 30 40

130250

400 400

100

350 350

$0

$100

$200

Cdn

$04Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2013 2014 2015 2016 2017 2018 2019 2025

16

Page 18: Bc 03252010 pres

Maturity ProfileAs of February 28 2010

$1,000

As of February 28, 2010

M USD

$700

$800

$900 8.625% Sr. Note 2019 8.375% Sr. Note 2016

7.875% Notes 2025 L+312.5bps Fr Notes 2013

6.5% Notes 2012 7.85% Note 2010

$500

$600

$700 Total Return Swap AR Sec Program

Bilaterals Secured Revolver

400

400$300

$400

350

95 100 30 40

20075 237

400

100

350350

$0

$100

$200

$01Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2013 2014 2015 2016 2017 2018 2019 2025

17

Page 19: Bc 03252010 pres

Maturity ProfileForecast as of September 1 2010Forecast as of September 1, 2010

$1,000M USD

$700

$800

$900 8.625% Sr. Note 2019 8.375% Sr. Note 2016

7.875% Notes 2025 L+312.5bps Fr Notes 2013

6.5% Notes 2012 AR Sec Program

$500

$600

$700Bilaterals Secured Revolver

400

400$300

$400

350

100 30 40

200

400

100

350350

$0

$100

$200

$02010 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2013 2014 2015 2016 2017 2018 2019 2025

18

Page 20: Bc 03252010 pres

NOVA ChemicalsNet Income

50$M

Net Income

0

-100

-50

-150

-250

-200

Q4'08 Q1'09 Q2'09 Q3'09 Q4'09

19

Page 21: Bc 03252010 pres

NOVA ChemicalsAdjusted EBITDA

200$M

Adjusted EBITDA

100

-100

0

R l f FX I

-200

Removal of FX ImpactAdjusted EBITDA

-400

-300

Q4'08 Q1'09 Q2'09 Q3'09 Q4'09

20Adjusted EBITDA is net income before interest expense, income taxes, depreciation and amortization, other gains/losses, mark-to-market feedstock derivatives, IPIC transaction costs and restructuring costs.

Page 22: Bc 03252010 pres

NOVA ChemicalsBond Price Performance

$110

Bond Price Performance

$90

$100

$80

$90

$60

$70

$50 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

2012 6.5% Notes 2013 L+312.5bps Notes 2025 7.875% Notes

21

Page 23: Bc 03252010 pres

NOVA ChemicalsDebt RatingsDebt Ratings

Dominion Bond Rating Service Limited(1) BBB (low)

Fitch Ratings Ltd. B+

Moody’s Investor Service Ba3Moody s Investor Service Ba3

Standard & Poor’s B+

1. The rating is NOVA Chemicals’ senior unsecured debt rating. DBRS has withdrawn the corporate family debt rating because NOVA Chemicals is now rated investment grade. 22

Page 24: Bc 03252010 pres

NOVA ChemicalsSummarySummary

B i lt i d t dil i 2009 diBusiness results improved steadily in 2009, ending with a quarterly net profit

Successful refinancing including $700M of seniorSuccessful refinancing – including $700M of senior notes

Focus on meeting our customers’ needsFocus on meeting our customers needs

Part of a larger IPIC family that gives us new opportunities

23

Page 25: Bc 03252010 pres

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The information contained herein is to our knowledge accurate and reliable as of the date of publication. We extend no warranties and make no representations as to the accuracy or completeness of the information contained herein, and assume no responsibility regarding the consequences of its use or for any printing errors.