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Published byRuby Webster Modified over 9 years ago
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Visit our website www.indoramaventures.com
As of August 2015
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Disclaimer This presentation might 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 agents, employees or advisors 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. The results of operations for the periods reflected herein are not necessarily indicative of results that may be achieved for future periods, and the Company’s actual results may differ materially from those discussed in the forward-looking statements as a result of various factors not foreseen at the time of giving this presentation. This presentation should not be treated as advice relating to legal, taxation, financial, accounting or investment matters. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and of the risks and merits of any investment in the Shares, and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. 2
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Indorama Ventures Vision, Mission and Values
To be one of the leading global producers with key focus on people and processes thus making Indorama Ventures one of the most admired companies in the world. Mission Value Continuously upgrade quality of products and services through people involvement and world class processes to attain customer delight thus becoming a preferred supplier and institutionalize people learning as a key factor for business growth. People First We believe that people are our core strength, be it our employees, suppliers, customers, shareholders and stakeholders. Their involvement and satisfaction are the key drivers for our success and growth. Social Responsibility We believe in being responsible and caring for the society and maintaining as well as enhancing the environment around. Customer Delight We believe we exist because of our customers. We focus our activities to achieve customer delight and loyalty for a long lasting relationship. Corporate Governance We believe in transparency, accountability and ethics. We aim to achieve highest degree of governance in accordance with the best practices. 3
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Indorama Ventures Leading through Innovation
Benchmark in operational excellence. Exceptional management with proven track record. Polyester chain industry leader - target capacity of 10.4 million tonnes by 2018. Globally #1 PET producer Over 260 patents and R&D team over 125 professionals Focused on both staple and specialty products to serve all customer needs. Integrated portfolio designed for growth. Providing value-added and differentiated products and services. Truly global company With 56 operating sites, 19 countries, four continents The only Polyester Value Chain company with a presence on four continents. Represents over a third of the market in Europe and North America. Leading the recycling revolution. The key player in Europe PET recycling. Lower carbon footprint. Long-term Business View A+ credit rating with stable outlook by TRIS Rating Co., Ltd. Strong financial discipline. Strong commitment to grow shareholder value. Strong visibility of cash flow. Part of the MSCI in Thailand since 2010. Selected by Forbes Asia as a Fab 50 company in the Asia Pacific Region. BCG Global Challenger and ICIS Top 40 Power Players. Market Capitalization THB 119 bn/US$ 3.6 bn (as of April 2015). Creating shareholders’ value 4
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Our Roadmap to Establishing a Winning Business Model
From one PET Plant in Thailand in 1995 to a Truly Global Footprint Extended global reach to all key mature and developing markets Enhanced and well-balanced HVA portfolio Enhanced integration into raw materials Expanded global reach across main markets Differentiated product portfolio with addition of HVA businesses Backward integrated into MEG Commenced business in Thailand Entered into PET and Fiber industries Enter PET market in US and Europe Backward integrated into PTA 5
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Continuous Growth leads to Sustainable Leadership Differentiation and low cost business profile
1994 Commenced business in Thailand by setting up the first worsted wool yarn producer in Thailand. 2008 Entered into PTA business with IRH Rotterdam, Indorama Petrochem and TPT Petrochemicals. Acquired Tuntex Thailand, the largest polyester fiber producer in the country. Acquired two PET resin facilities from the Eastman Chemical Company in Rotterdam, the Netherlands and Workington, UK. Indonesia and Poland, with entry into R&D through acquisitions in the US and Germany, as well as a joint venture for a PTA facility in Indonesia. Entry into value- added hygiene sector with acquisition of FiberVisions in the U.S.A. Acquired Polypet in Indonesia, BPL in the UK and Old World MEG acquisition slated for April IVL constructed a PET plant at Port Harcourt, Nigeria. IVL announced agreement to acquire Performance Fibers in China. 1995 Entered the petrochemical industry with the establishment of a PET resin facility in Thailand. 1996 Grew PET business downstream by producing PET preforms, bottles and closures through a joint ventures with Serm Suk PCL. 2009 IVL completed construction of AlphaPet in Alabama, the U.S.A. 2015 IVL announced agreement to fully acquire the new state-of-the-art PET resin plant, Polyplex Europa Polyester Film San ve Ticaret. A.Ş. In Turkey. We acquired 94.91% stake in Bangkok Polyester (“BPC”), Thailand and signed an agreement to acquire 100% shareholding of CEPSA Chimie Montréal s.e.c. in Canada. 1997 Entered the polyester fiber business with the acquisition of Siam Polyester which subsequently re-named Indo Poly. 2013- 2014 IVL board approved the acquisition of a packaging company in Nigeria, Africa. IVL announced the acquisition of PHP Fibers GmbH and its subsidiaries. IVL holds 80% of PHP while the remaining 20% is held by Toyobo. We acquired 100% of Artenius TurkPET A.S. in Adana, Turkey. The company has added new packaging facilities in The Philippines and Ghana in 2014. 2010 Listed in Thailand as IVL. Launched strategic plan to triple production capacity by We acquired a business in Italy through joint venture and a utilities company to power our Rotterdam plant. 2003 The Company expanded PET production internationally with StarPet in the U.S.A. 2011- 2012 Acquisitions in HVA business and build portfolio of differentiation and low cost in the US, Mexico, Germany, China, 2006 IVL expanded into Europe with Orion Global PET in Lithuania. 6
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Global Presence 56 Operating sites in 19 countries across 4 continents
IVL has two non-operating sites in Workington, UK, and Ottana, Italy 7
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Differentiated Fiber Brand in Attractive HVA Niches
Global Industry Leader Dominant Presence Across The Value Chain Position Segment Region Share Other Players PET Polymers North America 31% Alpek, M&G Europe 29% La Seda, Neo Group China* 42% CRC, Pan Asia Thailand 38% Shinkong, Thai PET Resin Indonesia 44% IRS, Petnesia West Africa 75% Hosaf PET Packaging 11% Precision Plastics, Srithai Polyester Fibers 16% Nan Ya, Alpek Greenfibre, Elana 32% TPC, Kangwal 22% Asia Pacific, Tifico Monocomponent PP Fibers North America, Europe IFG, Meraklon Polyamide 6.6 Airbag Fibers 53% Invista, Nexis RPET Flakes 6% Freudenberg, STF RPET Fibers Greenfibre, Sion Purified Ethylene Oxide 30% Shell, BASF #1 #1 #1 #1 #1 #1 #1 #1 #1 PET Polymers #1 PET Packaging #1 Fibers #1 Recycling #1 PEO 1 PET Producer Globally Differentiated Fiber Brand in Attractive HVA Niches 1 1 8 Note: *Pearl River Delta Source: Industry Data, IVL Analysis
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Focused Portfolio in the Polyester Value Chain with committed total capacity of approximate 9 million tonnes by 2016 PET Revenue THB in million No.1 global PET player 26 sites, 13 countries, 4 continents Capacity: 3.8 MT per annum at the end of 2014 Only PET producer with presence in Europe , North America, Asia and Africa Leadership in Europe and North America Well-established and growing exposure to emerging markets 146,418 145,121 PET Fibers and Yarns Revenue THB in million 23 sites, 10 countries, 4 continents Capacity: 1.4 MT per annum at the end of 2014 Leading global player with presence in Europe, North America and Asia A global leader in value-added products Well-established and growing exposure to emerging markets 70,274 47,968 Fibers and Yarns Feedstock Revenue THB in million 6 sites, 5 countries, 3 continents Capacity: 2.3 MT per annum at the end of 2014 Strategic co-located with downstream facilities Raw material integration Provide cost competitive edge to PET and fiber businesses 64,477 70,391 Feedstock 9
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Polyester Staple Fibers
Leading polyester chain producer Diversified Product Portfolio Feedstock Polymer MEG PTA PET Polyester Staple Fibers High Value Added Products 21% 79% 68% 8% 24% Ethylene Oxide Ethylene Glycols Purified Terephthalic Acid Water Grade CSD Grade Reheat Grade Hot Fill Resin Film/ Sheet Grade Semi Dull Spinning Fibers Spinning Drawn Yarns Partially Oriented Yarns Regular Filament Yarns Specialty Film Can Liner Resins Barrier Resins Low Melt Polymer EBM PET rPET & Sb-free Resins Compounding Resins Medical Application High IV Refill Grade Hygiene Fibers Bi-component Super Absorbent Fibers Recycled Fibers Medical Application Mono Filament Non-woven Based on 2013 production volume 10
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Technology + Production Know How
Recycling for Sustainable Future Growth IVL Global Recycling Platform 2014 North America Europe Asia 8 5 6 1 7 2 4 3 Recycled Polymers Recycled Fiber Flakes Alpha Pet, USA Auriga, USA IV Polymers, Mexico IV Ecomex, Mexico Wellman, Ireland Wellman, France Wellman, Netherlands IPI NPT, Thailand 1 5 8 2 6 3 7 4 Technology + Production Know How 11
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Partnering Closely with Global Majors World’s most famous brands
World-class Raw Material Suppliers World-class Technologies World-class customer base globally Partnership 12
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Energy & Upstream Petrochemicals
Polyester Value Chain Bridge between petrochemicals and FMCGs Energy & Upstream Petrochemicals PX and Ethylene Polyester Chain PTA, MEG and Polyester Consumer Staple Key end use markets Refinery PTA Plant Polyester Fiber Food & Beverage PTA (0.86) Personal Care & Home Care PET Resin Pharmaceuticals Electronics Aromatics (PX) Plant Polyester Polymer Plant PET Film MEG (0.34) Specialty Polymers Apparel Home Textile Non-woven Automotive Steam Cracker MEG Plant Specialty Fiber 13
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Executive and Non-executive Directors Independent Directors
INDORAMA VENTURES PCL Experienced Board of Directors Executive and Non-executive Directors S.P. Lohia ***** Chairman (Non-executive) Aloke Lohia ***** NCCG Committee Sustainability & Risk Management Committee D.K. Agarwal ***** Sustainability & Risk Management Committee Uday Gill ***** Sustainability & Risk Management Committee Suchitra Lohia ***** CSR Committee S.P. Khaitan ***** President Wool Amit Lohia ***** Director (Non-executive) Independent Directors Rathian Srimongkol ***** Audit Committee Sustainability & Risk Management Committee Maris Samaram ***** Audit Committee Sustainability & Risk Management Committee Russell Kekuewa ***** Sustainability & Risk Management Committee Dr. Siri Ganjarerndee ***** Audit Committee NCCG Committee Kanit Si ***** NCCG Committee William E. Heinecke ***** NCCG Committee NCCG - Nomination, Compensation and Corporate Governance Committee * Mr. Apisak Tantivorawong resigned from the IVL Board, effecitve 17 August 2015. 14
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Recent Recognitions, Strong Commitment
Forbes 2014 Asia’s Fab 50 Companies ICIS 2014 ICIS Top 100 Chemical Companies BCG 2014 BCG Global Challengers IHS 2014 Chemical Week’s Billion-Dollar Club SET Five-Star Corporate Governance Rating 2013 IOD Audit Committee of the Year 2013 Board of the Year 2013 CSR Recognition Award 2014 15
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Key Strategic Drivers #1 #2 #3 #4 #5 #6 Sustainability Product
Sustainability as key business driver Recycling capabilities and increasing use of RPET #2 Product Diversification Expand presence in attractive, growth HVA segments (e.g. Automotive, Hygiene) #3 Integration Enhance integration of downstream and intermediates businesses for margin resilience #4 Geographic Diversification Expand access to key developed and developing markets (Turkey, Africa, Asia, Middle East) #5 Operational Excellence Relentless focus on operational excellence Well-defined optimization plan #6 Asset Portfolio Optimization Continued reinvestment and active asset portfolio management to stay ahead of the cost curve (e.g. Europe) 16
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IVL – Delivering Superior Shareholder Value
Looking with Confidence in the Future IVL – Delivering Superior Shareholder Value New Markets New Products ‘Green’ Solutions Underpenetrated Emerging Markets Continued Production Substitution Lowest Carbon Footprint 17
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Our Strategic Levers Long-Term Commitment Integrated Business Model
Market Access Operational Excellence Innovation Sustainability 19 Scale, geography, innovation
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ขอบคุณ Grazie Thank you for your attention Merci Thank You Xièxiè Tak
Terima kasih Merci Na gode Thank You Xièxiè Danke Dank u Tak Dziękuję Gracias Grazie Ačiū Go raibh maith agat Salamat Po 20
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