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1 IVL Recycling Growth Plan Jan 10 th 2014. 2 IVL strategy maximizes recycling potential Flakes To Premium Fibre (rFibre) Flakes To Packaging (rPET) Post.

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Presentation on theme: "1 IVL Recycling Growth Plan Jan 10 th 2014. 2 IVL strategy maximizes recycling potential Flakes To Premium Fibre (rFibre) Flakes To Packaging (rPET) Post."— Presentation transcript:

1 1 IVL Recycling Growth Plan Jan 10 th 2014

2 2 IVL strategy maximizes recycling potential Flakes To Premium Fibre (rFibre) Flakes To Packaging (rPET) Post Consumer Bottles to Flakes

3 3 Recycled Polyester – A Step Ahead rFiber more energy and emissions efficient than virgin polyester fiber High Low Source: Industry

4 4 Over 3 mn tons of incremental recycling opportunity IVL targeting 3% share of global rPET consumption by 2018 KT20132018CAGR % Bottle Availability17,59024,771 7.1 Bottle Collection 8,773 12,7647.8 Flakes 6,580 9,5737.8 Industrial Waste 1,043 1,4637.0 Recovered Polymer 7,623 11,0357.7 Recycled Fibers 5,592 8,3348.3 Surplus flakes 2,032 2,7015.9 IVL Share (%) 1.53.0 IVL converted over 100,000 tons of bottles to flakes in 2013 which will go up to 150,000 in 2014 IVL consumes over 110 KT of recycled flakes and targets over 300 KT by 2018

5 5 IVL positioned to take advantage of Raw material / Market access Decatur, US Flake to Resin Spartanburg, US Recycled resins Mullagh, Ireland Recycle Fiber Spijk, Netherlands Bottle flakes Verdun, France Bottle flakes Rotterdam, Netherlands Bio-PET Nakhon Pathom, Thailand Recycled Fiber Bottles KT20132018IncrementCAGR % NORTH AMERICA 1,459 1,737 2783.6% SOUTH AMERICA 390 560 1697.5% EUROPEAN UNION 1,896 2,209 3133.1% CENTRAL EUROPE 345 438 924.9% MID EAST - AFRICA 283 478 19511.1% ASIA 4,401 7,344 2,94310.8% Total 8,773 12,764 3,9917.8% Queretaro, Mexico Recycled resins

6 6 Direct customer End user Products, R&D, support Exacting Quality Standards Supply Chain R&D, support solutions Joint Business Planning Global consumers seek direct engagement with IVL worldwide IVL engaged in long term business alliances with major brands

7 7 IVL targeting to be largest premium recycler by 2018 42 operating sites,15 countries, 4 continents Only Polyester Value Chain Company with a Footprint Across 4 Continents

8 8 IVL major thrust into rPET and specialties 2013 2018 3,679 KT 4,875 KT

9 9 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%

10 10 High value applications taking increasing share of rPET IVL has special know-how to target high end applications for recycled material

11 11 Substantial value to be tapped through recycling Avg Delta – 330 $/T Avg Delta – 382 $/T Price Trend - USA Price Trend - Europe Source: CMAI, Platts $/Ton

12 12 IVL Europe consistently Asian import competition proof IVL capability in Europe generates significant premium over Asian imports Avg Premium – 381 $/T

13 13 IVL fibers main focus on Hygiene and Technical segments - Wellman Growth led by Innovation Vitality Index 2012 - 2018 Superior financial performance ROCE 2012 - 2018

14 14 Wellman recycling know-how extended to Nakhonpathom plant in Asia Bale Breaking and electronic bottle sorting Washing and Cleaning Flaking, Decontamination and Drying Computerized Blending Spinning Hygiene Fiber Recycled Bottles 44 KTA Recycled Resin 15 KTA 22 KTA Project Commissioning by Q1 2014

15 15 IVL plans to be world’s most sustainable polyester producer Recycling will continue to grow at a faster rate in premium rPET & rFibre applications IVL targets to grow its recycled products from 158 KT to 823 KT by 2018 Recycled flakes have over $300/ton cost advantage to virgin material IVL to leverage Wellman’s bottle to flake technology on a global scale to generate premium Enhanced intimacy with global brands Increased recycled content in IVL portfolio will improve our sustainability scorecard

16 Thank you for your attention


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