Enterprise value enhancement for global leadership Uday Gill Fibers business

Business value enhancement– the next phase Continued focus on sustainable and profitable growth Cross Multiply Innovation Global Supply Partnerships Operational Excellence Engaged and Empowered People Current Value Structure Volume KT Revenue $M 381 1,370 Target Value Structure 2018 Volume KT1,968 Revenue $M 3,818 Enhancement Process Regulatory / Industry moves Multiple x 2.8x Target Acquisitions/investments

Our path to growth and globalization Highly diversified global portfolio REVENUE $ mn ,370 CAGR % (2010 – 2013) Volume44 Revenue58 HVA Focus Brownfiled Expansion 1,211 2,404 Volume KT Timeline

Synergistic portfolio of industry leading brands Global Airbag Yarn leader Globally #1 Bi-Co Fibers Europe #1 Specialty Fibers Europe #1 Recycle Fibers Procure- ment Customer Intimacy Asset Utilization R&D Focus

Leveraged western IP and market access to swing Asian assets to HVA Asian assets to help western units regain lost markets Planned AssetsNew Assets Asia 2010 Asia 2018 European and North American business mix Volume 256 KT Volume 909 KT

Business model enhances IVL brand premium ( 2013 ) 1. Based on IVL all units price for standard grades of commodity products Source: IVL analysis $/MT Brand Value Fixed Cost Raw Material Specialty EBITDA Premium ICIS commodity price Variable Cost Specialty price premium

Continued focus on operational excellence Reducing operating cost and increasing operational efficiency Operational Excellence Savings ($ K) Major Initiatives Utilization Improvement Capacity utilization > 90% Efficiency Improvement Savings $ 13.6 mn Energy Saving Savings $ 11.1 mn RM and Procurement Initiatives Savings $4.5 mn Significant cost reduction from process improvement initiatives Note: Savings under major initiatives total from

Cumulative return on acquisitions less than 5 years 5 Years Note: Doesn't’t include IPI assets,which are already paid back and IPCI

Mega trends – changing demographics Growing World Population Increasing Affluence and Urbanization 7.6 billion people will live on earth by % of world’s population will live in cities by 2018 Apparel and Home Sports and active wear mn tons mn tons Medical and hygiene segment mn tons mn tons Technical Segment Filtration/ Industrial mn tons mn tons Sub Trends Opportunity IVL Focus KT KT KT KT KT KT CAGR 5.3% CAGR 5.7% CAGR 6.5% Lifestyle Changes CAGR 13% CAGR 6% CAGR 11% Note: All fibers excluding cotton and wool

Man made fibers growth led by technical textiles Industrial, Automotive and Hygiene segment to grow at higher rate mn tons mn tons Note: All fibers excluding cotton and wool 4.9% 5.9% 5.3% 5.7% 6.5% Mn tons CAGR

IVL focus – HVA segments Growth Rate Segment Attractiveness Construction 3 mn tons Industrial 2.6 mn tons Medical and Hygiene 2.7 mn tons Automotive 3.7 mn tons Sports 1.5 mn tons Geo Textiles 0.5 mn tons Safety 0.4 mn tons Packaging 4 mn tons Home 13 mn tons 8% 4% Apparel 24 mn tons Technical Clothing 1.5 mn tons Agriculture 2.2 mn tons

IVL strategic growth in target segments Leveraging regional capabilities and competitiveness KT KT 11% 19% 31% 6% CAGR 2013 – % ,493 KT

The competition we respect IVL better positioned from cost of production, access to specialty know how and global presence Some of IVL’s competitors have preferential trade agreements in their favor IVL is actively working on acquiring position in countries with preferential trade benefits

Project pipeline focused on diversified technical segments Unbeatable product portfolio for Competitive Advantage 2013 Budgeted Growth Potential Growth 2018 Volume (KT) 875 1, ,968 Revenue ($ mn) 1,370 2, ,818 Revenue Growth ($ M)

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