1. Completing the Integrated Polyester Chain
10 January 2014
Feedstock Business

2. Target Value Structure
Capturing Value Chain through Integration Resilient and Sustainable profitable growth
Target Value Structure
Volume KT 2, ,223
Revenue $M 2, ,624
Value Drivers
Entering upstream:
Aromatics Project
Building Smart Assets:
Scale, Close to Feedstock, Markets
Retrofit existing Assets:
Cost reduction & enhanced productivity
Assured Markets:
Captive Feed to IVL Polyester D/S
Management Bandwidth:
Knowledgeable & Experienced Team
Current Value Structure
Volume KT ,146
Revenue $M ,424

3. Capturing full value chain integration
Milestones in moving Upstream
2018
6275 KT
Capturing full value chain integration
Abu Dhabi PX 1400 KT
PTA “Project Manhattan”
1200 KT
Abu Dhabi BZ 500 KT PX
1400 KT BZ
500 KT
Netherland PTA Expansion
250 KT
2009
1745 KT
Indonesia PTA
500 KT EG
680 KT
EG 130KT
US EG
550 KT
Thailand PTA
600 KT
770 KT
PTA
3695 KT
More than tripling feedstock capacity in 10 years
Netherland PTA
375 KT
2012
2013
2015

4. PET Recycle Resin (PCR)
Strategic Upstream Investment
Refinery
(Naphtha)
Aromatics (PX) plant
PTA plant
Polyester Fiber
Crude Oil/ Natural Gas
PET Recycle Resin (PCR)
Polyester Polymer plant
PET Resin
Steam Cracker
(Ethylene)
MEG plant
PET Film
Energy & Upstream (Naphtha and Ethylene)
Polyester Chain (PX, PTA, EG and Polyesters)
Source: IVL Analysis

5. Resilient Margins – Polyester Value Chain
Chain Spread Avg: 1292/MT
PX Spread Avg: 470$/MT
BZ Spread Avg:240$/MT
BZ Spread over Naphtha
Source: Industry Publications PAL, IHS, PCI & IVL Analysis,
Global spreads derived from simple avg. of US & EU del spreads and Asia spreads on CFR China basis. BZ spreads on FOB NEA basis
IVL’s integration loop is in an advance state of capturing entire value chain to enhance margins
IVL PTA targeted 3.9 MMTA capacity by 2018 warrants PX to the tune of 2.5MMTA
Footprint in US EG to lead to many opportunities in Olefins integration & EG expansion
Entry into BZ will open up new opportunities

6. IVL’s investment into Aromatics - A Better Cost Position
New Aromatics Plant at Abu Dhabi
Indorama Ventures Ltd and Abu Dhabi National Chemicals Co.(ChemaWEyaat) have signed a JV to develop the Tacaamol Aromatics Plant on Madeenat ChemaWEyaat Al Gharbia’s (MCAG) site in the Western Region of Abu Dhabi.
Paraxylene MMTA
Benzene MMTA
Start up
Technology - UOP
Virtual Integration with Refinery / Feedstock
Attractive Feedstock Pricing
Project Management Consultancy – Foster Wheeler
Feed available from 2014 H2
ChemaWEyaat will hold 51% equity & Indorama 49% in the JV to be known as Abu Dhabi Chemicals Integration Co. LLC (Tacaamol).

7. Retrofits give fast payback - lower RM consumption and energy savings
PTA - Cost Reduction through Retrofit
Operational Excellence
72.50
US$ Mil.
28.13
US$ Mil./Y
Payback:
Capex – 0.9 years
Capex – 2.6 years
11.01
US$ Mil./Y
9.83
US$ Mil.
Capex (USD Mil.)
Annual Saving (USD Mil.)
Retrofits give fast payback - lower RM consumption and energy savings

8. IVL PTA Business
Well positioned regionally with high degree of integration
Flexible operations with 4 facilities located in Thailand, Indonesia and Netherlands
Integrated PTA production with D/S: 70% captive consumption overall.
RTD and Indonesia PTA fully captive and Thai has 60% captive / associate consumption.
End product logistics cost savings, sharing of physical infrastructure, utility, storage facilities
Strong asset portfolio with low cost position compared to regional peers
Cost advantage obtained by scale, polyester and energy integration/co-location, operational excellence
Secured, cost advantaged feedstock supply under strategic contracts
Strong Buying position in Europe and SE Asia
Co-location / proximity to feedstock (pipeline, barge)
Highly experienced mgt team with track record of value creation

9. IVOG - EOEG Business Key Factors
One of the largest EO EG facility in North America
Diverse Product portfolio
Advantage feedstock sourcing from natural gas/shale gas
Strategic location in Celanese facility with sharing cost
High EBITDA margin business
Low operational risk
Favorable industry dynamics

10. IVOG - Diverse product portfolio
End-Use Products
End Use
Purified Ethylene Oxide (PEO)
Surfactants
Detergents
Soaps & Shampoos
Monoethylene Glycol (MEG)
Polyester fibers
Pet Resin
Film resin
Antifreeze & coolants
Industrial application
Diethylene Glycol (DEG)
Solvent
Lubricants
Gas dehydration
Triethylene Glycol (TEG)
Industrial solvent
Insecticides
Pigments
Alcohol Ethoxylates (AE’s)
Shampoos
Source: IHS, IVL Analysis

11. EO industry in North America : Extremely Tight
EO Capacity /Production
Tight EO market leads to tightness in EG industry
Source: PCI, IVL Analysis

12. High PEO Margins expected in USA
PEO Margins in USA to 2016f
Enhance PEO margins due to shortage
Source: PCI, IVL Analysis

13. IVOG – PEO & MEG Market Share in USA
2013- MEG market share by competitor
2013- PEO Producer merchant market share
US MEG market short by 691KT in Total requirement is 2250kt.
Demand shortfall supplied by Canada and Middle east
Twelve major MEG buyers, seven polyester buyers, five antifreeze buyers
Total PEO merchant market size in USA is 517 KT in 2013
IVOG is largest seller of PEO to US merchant buyers with 30% market share
Source: IHS, IVL Analysis

14. Cheaper Ethylene in North America
MEG Spreads
Cheaper Ethylene in North America
Global tightness
High US MEG Spreads
Source: IHS, IVL Analysis

15. EG – Global Industry Cost Curve
Ethylene production cash cost @ $99 Brent/$3.7 U.S Gas
No longer available
5% capacity based on dmo/mto & coal based unproven technologies
43% capacity based on Gas
52% capacity based on Naphtha
World MEG Floor price to be set by MEG producers with integrated Naphtha economics
Source: PCI, IVL Analysis

16. Footprint in US to lead to greater Olefins & EG opportunities
Debottlenecking
Expansion
Downstream integration
Upstream integration
Scope
Scale
Key business growth drivers
Set up / participate in crackers in N.A to leverage shale gas. “Make or Buy decision” for captive requirement
Set up facility for PEO derivatives like Ethanolamine, Ethoxylates etc
Set up new MEG plant of 750KT for captive use. IVL’s global captive requirement 2000 kt (in 2015f)
Increase crude EO capacity by 100KT to balance PEO & EG production
Source: IVL Analysis

17. Strategy – Feedstock Upstream Integration
Being at all segments of value chain
Competitive RM Buying
Leverage volume, supply Chain
Retrofit & DBN Existing Assets
Taking advantage of integrated production at single location & making assets more competitive
Focus on Untapped Potential
Leveraging on Shale Gas, Mid-stream Cracker Investment, Aromatics
Assured Markets
Seizing Opportunity as less competitive
& non-integrated players vanish away

18. Thank You