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Beverages Food Home Care Pharma Apparel Medical Home Textiles Geotextile Indorama Ventures Capital Day, 10 th January, 2014.

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Presentation on theme: "Beverages Food Home Care Pharma Apparel Medical Home Textiles Geotextile Indorama Ventures Capital Day, 10 th January, 2014."— Presentation transcript:

1 Beverages Food Home Care Pharma Apparel Medical Home Textiles Geotextile Indorama Ventures Capital Day, 10 th January, 2014

2 PET Business Value Enhancement 2009 2013E 2018 Note : 2018 includes new projects Volume in KMT & Revenue & EBITDA in MM $ Selective Downstream Market Leadership Global Presence Innovation Passionate Leadership Operating Excellence Key Drivers

3 3 IVL PET Segment Growth Journey.. Lead by Greenfield expansions and successful acquisitions 21170 230870112028403660 3900 # 1995200320062007-08200920112012-132014 Indorama Polymers Thailand Starpet Acquisition US Orion Global, Lithuania Eastman (RTD + WKT), Europe Alphapet, US GIVL, China Polypet, Indonesia Project Thor & Poseidon SK Indonesia & Poland SK Indonesia & Poland Invista Auriga, US & Mexico IPNL, Nigeria IPNL, Nigeria IPIR, Thailand IPIR, Thailand RTD-II OGP DBN GIVL DBN RTD-II OGP DBN GIVL DBN POLAND DBN Brownfield Starpet DBN Starpet DBN WKT Mothballing Green Field Acquisition *Cumulative Capacity KMT * Year 15 sites- 10 countries- 4 continents New capacities based on startup dates. #Mothballing in WKT (168KMT), Poland DBN (73KMT) & new targets considered for full capacity Capacity Share- 15% 2007-14 PET Segment 32% CAGR

4 A Successful Journey of Greenfield and Acquisitions Average payback period 4.3 Years Projects paid back already

5 IVL…Global #1 PET Industry Leader Aforesaid is based on 2013 capacity (ex JV) IVL nos are excl Nigeria (being SSP only) Alpek 200 KMT of Cape Fear site closure announcement reduced Source: PAL, IVL Analysis Geographical Diversification & Market Leadership

6 IVL Leadership Across Globe 15% Global Share 34% NAM40% EMEA Europe 35% Nigeria* 60% Project Thor & Poseidon 64% 7% Asia Thailand 41% Indonesia 45% China PRD 26% Unbeatable market position in each region for competitive advantage & long term sustainability *Nigeria- Capacity share 100% but 60% market share based on 2014 Business Plan PRD is Pearl River Delta Region in China

7 Global PET Producer’s…Competition We respect IVL Leads the Space ParameterIVLCompany A Company B Company CCompany D Cost competitiveness Multi Continental Raw Material Integration Market Reach (Low SG&A) HVA Portfolio Financial Strength rPET High Moderate Low

8 High Value Added – Global Presence Recycling capability to enhance value & volume proposition Spartanburg, US HVA (231 KMT) Decatur, US rPET(216 KMT) Rotterdam, Netherland Bio-PET Kaiping, China HVA (148 KMT) Mexico rPET & BIO PET (126 KMT) Largest producer of flake to rPET resin in North America market Target rPET production to be 20% of IVL volume by 2018 Upstream integration in bottles to flakes using In-house technology Largest producer of flake to rPET resin in North America market Target rPET production to be 20% of IVL volume by 2018 Upstream integration in bottles to flakes using In-house technology Target Projects in Europe, China, Indonesia & Thailand

9 IVL – Emerges as Global PET Solution Provider Volume ( HVA & rPET) KMT Revenue ( HVA & rPET) MM$ HVA Portfolio Speciality film grade Extrusion blow molding Barrier resin Target Japan market for Germanium, EBM, BIO etc. rPET in Mexico & Alphapet Pharma application R & D Platform Dedicated team of 27 professionals based in Auriga Scientist, Technicians having long experience Analytical labs CAGR 27% CAGR 26%

10 10 202/0/38 77/153/13 200/0/40 245/147/71 121/162/17 9 178/178/17 8 rPET Resin An opportunity for next phase of growth for Sustainability Bottles Wash Lines FlakesrPET IVL is only producer of rPET in Nr. America Target to grow Recycled business from 55 KMT in 2013 to 149 KMT in 2014 Strategy to develop 20% of IVL PET volume (700 KMT) as rPET by 2018 through setting up plants in Asia, Europe and further expansion in Nr. America Capture more value chain by backward integration with Wash lines rPET F&B Bottles Sheet and Film Fibers Strapping rPET Spreads higher than virgin by $ 35 to $ 70 PMT based on blended percentage CAGR- 65%

11 High Value Added – A Future Growth Driver HVA Volume Target 32%

12 Cost Competitiveness – A Continuous Focus…. Cost Optimization Efficiency Higher Operating Rate Debottlenecking Energy Reduction Operational Excellence Manpower Synergy benefit Projected Savings 46 MM$ UR – 81% to 96%

13 IVL Approach …. ROCE to grow from 7% to more than 15% Strategy Market Focus Operational Excellence Value Proposition Global Footprint Increase domestic market share Product Diversification Integration High utilisation & cost savings initiatives Debottlenecking of assets Direct selling & logistics optimization RM buying efficiency & better yield Focus on HVA / rPET product portfolio Strong R&D Strategic supplier relationship Develop new usage of PET Efficient working capital management Strategic fit for IVL Strategic Partnerships

14 THANK YOU


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