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1 Bangkok, Thailand – Capital Day January 10 th 2014 Indorama Ventures PET Business Segment Europe 2014
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PET EMEA - Business Value Enhancement 2009 2013E 2018 Key Drivers Market leadership Upstream Integration Geographical Diversification Cost leadership Market reach EMEA growth opportunity ROCE to improve - Rationalisation of Workington asset Higher Capacity Utilisation Growth in EMEA Poland Debottlenecking Cost reduction initiatives Efficient working capital management Note : 2014 & 2018 includes new projects Volume in KMT & Revenue in MM $
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3 Orion Global, Lithuania Eastman (RTD + WKT) SK Poland PET EMEA Growth Journey.. Lead by Greenfield and successful acquisitions Cumulative Capacity (KMT) 20047077011001400* Year2006-07200820112012-132014-18 Green Field Acquisition 6 sites- 5 countries Brownfield RTD-II OGP DBN RTD-II OGP DBN POLAND DBN New capacities based on startup dates. *Mothballing in WKT (168KMT) & Poland DBN (73KMT) in 2014. includes Nigeria SSP WKT Mothballing Capacity Share- 40% 2007-14 PET EMEA 34% CAGR IPNL, Nigeria IPNL, Nigeria Projects: Thor & Poseidon Projects: Thor & Poseidon
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ParameterIVLCompany ACompany BCompany CCompany D Cost competitiveness Geographical Diversification (Multi Sites) Raw Material Integration Market Reach Speciality Portfolio Financial Strength European PET Producer’s… Competition We Respect PTA integration and cost leadership High Moderate Low
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European PET Business Drive for Consolidation IVL is the Market Leader with 37% capacity, presence in multiple countries Capacity In Process Of Rationalisation post Laseda insolvency Opportunity to replace imports of 650 KMT IVL is the Market Leader with 37% capacity, presence in multiple countries Capacity In Process Of Rationalisation post Laseda insolvency Opportunity to replace imports of 650 KMT
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European PET Business Utilisation Rate to Improve Post Rationalization ~780 KMT to rationalise in 2014- 15, thus operating rate in 2014 -15 will improve to ~91% Rationalisation assumption – 1. NE – U (168) ; D (90) 2. SE - I (120) ; K (70); G (170 KMT); Z (161)
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7 xxxx European PET Business ~ Market Profile Target to enhance HVA & rPET volume…. PET leader with 34% of the virgin resin market share rPET focus – Strategy of forward integration using IVL Wellman flakes Potential to grow HVA portfolio utilizing IVL Trevira facility (3,500 KMT) Virgin + rPET
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European PET Business IVL EU STRATEGY 2014 PTA integration Actions on trade barriers and GSP Fixed cost reduction Optimal cost structure Improved working capital management Energy Saving Projects (OGP Bio – Fuel) Productivity Volume growth in African region Maintain market share Acquisition in new territory Bio capability in RTD WKT moth balling Higher utilization Poland Debottle knecking EfficiencyGrowth Strategic fit Operational Excellence
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9 Thanks
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