Leadership with Differentiation

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Presentation transcript:

Leadership with Differentiation Capital Markets Day 2014 Leadership with Differentiation Aloke Lohia, Group CEO January 10, 2014

Disclaimer All the following presentations by management of Indorama Ventures Public Company Limited and its subsidiaries and associates (“the Company”) at this Capital Day may contain “forward-looking statements”, which are based on current expectations and projections about future events, and include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “plans”, “could”, “should”, “predicts”, “projects”, “estimates”, “foresees” or similar expressions or the negative thereof, as well as predictions, projections and forecasts of the economy or economic trends of the markets, which are not necessarily indicative of the future or likely performance of the Company. Such forward-looking statements, as well as those included in any other material discussed at the presentation, concern future circumstances and results and involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions and estimates regarding the Company and its subsidiaries’ present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements are not guarantees of future performance. These forward- looking statements speak only as at the date of this presentation, and none of the Company, nor any of its employees intends or has any duty or obligation to supplement, amend, update or revise any such forward- looking statements to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based or whether in the light of new information, future events or otherwise. Given the aforementioned risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise.

Truly Global Footprint Integrated Business Model Global Industry Leader Unique Investment Opportunity with Significant Further Growth to Come World Class Portfolio Largest Scale 7.3MMt Capacity $7.4B Revenue 9,000 People Truly Global Footprint 2013E Capacity (MMt) 2013E Revenue Split (%) Most Global 42 Sites 15 Countries 4 Continents End Products Feedstock Consumer Staples Differentiated 6 R&D Centers 250 Patents 125 R&D Employees Integrated Business Model 9M13 Revenue by End Use Markets(%) Hygiene 5% Flakes Industrial 4% Automotive 1% PX Plant PTA Plant PET Resin Apparel 8% Home 1% Integrated PTA MEG Flakes PX (by 2018) Polyester Polymer Plant Polyester Fiber PTA 9% EO/EG 6% MEG Plant Packaging 66% PET Film Note: Capacity on proforma basis including JVs

Dominant Presence Across The Value Chain Leading Businesses Aligned to Attractive Markets Position Segment Region Share Main Players PET Resin & Polymers North America 31% Alpek, M&G Europe 29% La Seda, Neo Group China Pearl River Delta 42% CRC, Pan Asia PET Resin Thailand 38% Shinkong, Thai PET Resin Indonesia 44% IRS, Petnesia West Africa 75% Hosaf Specialty Polyester Fibers 16% Nan Ya, Alpek Greenfibre, Elana Commodity & Specialty Polyester Fibers 32% TPC, Kangwal 22% Asia Pacific, Tifico Bi-component PP Fibers World 28% Jiangnan, Far Eastern Monocomponent PP Fibers North America, Europe IFG, Meraklon Recycled PET (RPET) 6% Freudenberg, STF Recycled Fiber (RFiber) Greenfibre, Sion Merchant PEO 30% Shell, BASF #1 Source: Industry Data, IVL Analysis

Track Record of Success with Clear Objectives Milestones of Growth Towards Global Leadership Pre 2007 2007-2009 2010 - Present Commenced business in Thailand Entrance into petrochemical downstream industry Expansion into US and Europe Creating fundamentals for growth Moving towards undisputable leadership Listing on SET Deployment of global M&A strategy across full value chain Diversification of HVA portfolio Expanding presence – entrance into EO/EG Integration and consolidation Emerging as industry-leading player Expanding presence – entrance into PTA Creating PET market leadership in US and Europe Fiber expansion Orion Global Lithuania IRP Thailand Petform Starpet US Tuntex Thailand IRPL Thailand Ottana Italy Invista N.America Wellman Europe Polypet Indonesia Kaiping China Trevira Germany FiberVisions Global Old World US Eastman Europe Alphapet US SK Indonesia/ Poland Polyprima Indonesia Packaging UK PET Nigeria Fibers Indonesia Packaging Nigeria PET/Polymers Packaging Fibers PTA MEG PET & Fiber PET/Fiber & PTA

Key Drivers of Future Evolution Principal Levers Creating Shareholders Value Margin Volume Cost

Clear Roadmap to 2018 Rich Pipeline of Attractive Opportunities 2013 2018 Key Approved and On-Going Projects Indonesia Fibers Start-Up in 4Q13 Poland PET Expansion 2014 Rotterdam PTA Expansion 2015 AlphaPet 2 2015 Aromatics Abu Dhabi 2018 New Growth Opportunities Project Panda 2014 Project Silk 2014 Project Thor 2014 Project Poseidon 2014 Project Manhattan 2017 Various HVA Businesses through M&A Geography Integration Innovation

Portfolio Development Geography, Integration, Innovation 2018 2013 2018F Capacity 12.1 MMt 2013E Capacity 7.3 MMt Feedstock from Market Own Feedstock PET Export PET Domestic Fiber Export Fiber Domestic PET HVA Fiber HVA Non-Poly HVA Benzene Feedstock Integration End Product Portfolio Note: Capacity on proforma basis including JVs

Optimized Five Elements for Cost Leadership Leveraging Our Operational Excellence Integrated Sites Utilization Energy 5 4 3 Lean Management 2 Scale Proximity to Suppliers Proximity to Customers 1 2018 Target: 10% Reduction Procurement Conversion Cost SG&A Overheads Capital Cost Total Cost To Market

Delivering Profitable Growth Enhancing Margins and Optimizing Cost Spread ($/MT) Cost ($/MT) Raw Material Margin ($) Net Operating Debt ($B) 1.1 1.0 1.4 2.5 2.9 3.0 2.8 2.0 Growth Capex ($B) 0.1 0.2 1.0 1.3 0.7 0.6 0.5 PET Asia PET EMEA PET NAM Poly Asia PTA Asia PTA EMEA Glycols HVA Aromatics Raw Material Margin - LHS ($B) Spread - RHS ($/MT) Delivered Cost (ex RM) – RHS ($/MT) Note: Raw Material Margin defined as Sales less Raw Material Cost

Far Reaching Transformation Maximizing Potential Opportunities EBITDA Bridge 2013 - 2018 Others Glycols PTA 2018F 2013E Utilization Cost Margin Projects Panda Silk & Thor Poseidon PTA/MEG Brownfield Manhattan Abu Dhabi CP-4 Projects: PET Brownfield Fibers Brownfield

IVL Tomorrow Creating Superior Shareholder Returns Proforma Capacity Growth Proforma Revenue Growth ~1.7 times Proforma Capacity Growth ROCE > 15% ROCE MMt ~1.7x Proforma Revenue Growth 2018F EBITDA $Billion Commodity ~1.7x Feedstock HVA

Key Drivers of Our Growth Are Compelling Recycling Innovation Integration Operational Excellence Leading Through Differentiation