Indorama Ventures PET Business Segment Asia 2014
PET Asia - Business Value Enhancement Key Drivers Volume – 175 Revenue – 183 EBITDA - 9 ROCE – 6.6% Volume – 888 Revenue – 1,267 EBITDA - 57 ROCE – 6.4% Volume – 1,034 Revenue – 1,436 ROCE – >15% 2009 2013E 2018 End product strategy – key to value chain integration HVA portfolio Full utilisation Market leadership – Thailand & Indonesia Leader in China PRD region ROCE to improve – Higher capacity utilisation Growth in HVA Higher volume in domestic market Productivity projects Efficient working capital management rPET to help sustainability score card Volume in KMT & Revenue in MM $
Thailand capacity share - 41% Indonesia capacity share 45% PET Asia Growth Journey.. Lead by Greenfield and successful acquisitions Thailand capacity share - 41% 2007-13 PET Asia 33% CAGR Indonesia capacity share 45% Indorama Polymers Thailand GIVL, China Polypet, Indonesia SK Indonesia IPIR, Thailand 5 sites- 3 countries Cumulative Capacity (KMT) 21 200 1030 Year 1995 2009 2013 New capacities based on startup dates in 2011-12 Green Field Acquisition
Asian PET Producer’s… Competition We Respect Domestic leadership in Thailand & Indonesia And Low cost Export base in China Parameter IVL Company A Company B Company C Cost competitiveness Geographical Diversification (Multi Country Sites) Raw Material Integration Domestic Market Share (Low SG&A) Speciality Portfolio Financial Strength Recycling Capability Moderate High Low
Global reach of Asian PET business – 2013 Kaiping, China PET & Polymers 522KTA PET: 91KTA Map Ta Phut, Thailand PET: 178KTA, Lopburi, Thailand Majority Share in Top Markets Country Mkt Share Indonesia 58% Thailand 44% Aus/NZ 41% Vietnam 26% PRD China Karyapersada Indonesia Tangerang, Indonesia PET: 88KTA PET: 101KTA Highly Diversified Market Presence - Serves 700 customers in 74 countries
(2012 – 2018 IVL Product and Market Portfolio Focus on Enhancing Margins and ROCE 1,034 855 KMT 562 Highly Diversified markets Specialties/Recycle continue to grow reducing commodities volume Domestic market enhancement reduces SGNA
Specialties / HVA portfolio – Asia Existing High I.V. grades Master batches – Film and Textile Specialties Silica /Fuji Silica 6000 / 8000 ppm Heat Sealable Films Cationic Dyeable and Flame retardant Recently Commercialized Ramapet G1 (Returnable Bottles) Ramapet E1 (Extrusion Blow Molding) Ramapet N2G (Germanium based, Heavy Metal free) Bio MEG Based Grades Ramapet L1 (Blood Collection Tubes) Fast Crystallization Grade (AFRON N001N) Can liner Grade In Pipeline NPG Modified grades (For Shrink Labels) Antimony based Germanium based Aluminum Catalyst and Bio MEG based
IVL Asia STRATEGY 2014 Focus on ROCE Efficiency Growth Strategic fit Full utilization Lower Conversion Cost through productivity projects Action on Trade Barriers Growth Enhance market share in Thailand/ Indonesia Increase captive business Look for next Investment Opportunity Enhance Specialty Portfolio Strategic fit PTA integration Co-Location with Polyester sites Downstream integration with Packaging Financial ROCE to improve to double digit Working capital management
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