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As of August 2015Visit our website www.indoramaventures.com
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.
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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.
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.
Mission ValuePeople 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.
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.
Social Responsibility We believe in being responsible and caring for the society and maintaining as well as enhancing the environment around.
Indorama VenturesVision, Mission and Values
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Long-term Business View
▪Leading the recycling revolution.▪The key player in Europe PET recycling.▪Lower carbon footprint.
Creating shareholders’ value
▪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).
Indorama Ventures Leading through Innovation
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.
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.
Globally #1PET producer
▪Benchmark in operational excellence.▪Exceptional management with proven track record.▪Polyester chain industry leader - target capacity of 10.4 million tonnes by 2018.
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.
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Our Roadmap to Establishinga Winning Business Model
From one PET Plant in Thailand in 1995 toa Truly Global Footprint
▪ Commenced business in Thailand▪ Entered into PET and Fiber
industries▪ Enter PET market in US and
Europe▪ Backward integrated into PTA
1995 - 2010
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▪ Expanded global reach across main markets
▪ Differentiated product portfolio with addition of HVA businesses
▪ Backward integrated into MEG
2010 - 2014
▪ Extended global reach to all key mature and developing markets
▪ Enhanced and well-balanced HVA portfolio
▪ Enhanced integration into raw materials
2014 - 2018
Continuous Growth leads to Sustainable LeadershipDifferentiation and low cost business profile
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1994 Commenced business in Thailand by setting up the first worsted wool yarn producer in Thailand.
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.
1997 Entered the polyester fiber business with the acquisition of Siam Polyester which subsequently re-named Indo Poly.
2003 The Company expanded PET production internationally with StarPet in the U.S.A.
2006 IVL expanded into Europe with Orion Global PET in Lithuania.
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.
2009 IVL completed construction of AlphaPet in Alabama, the U.S.A.
2010 Listed in Thailand as IVL. Launched strategic plan to triple production capacity by 2014. We acquired a business in Italy through joint venture and a utilities company to power our Rotterdam plant.
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 2012. IVL constructed a PET plant at Port Harcourt, Nigeria.
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.
2011-2012
Acquisitions in HVA business and build portfolio of differentiation and low cost in the US, Mexico, Germany, China,
IVL announced agreement to acquire Performance Fibers in China.
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.
Global Presence56 Operating sites in 19 countries across 4 continents
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IVL has two non-operating sites in Workington, UK, and Ottana, Italy
Global Industry LeaderDominant 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 Thailand 11% Precision Plastics, Srithai
Polyester FibersNorth America 16% Nan Ya, Alpek
Europe 29% Greenfibre, Elana
Thailand 32% TPC, Kangwal
Indonesia 22% Asia Pacific, Tifico
Monocomponent PP Fibers North America, Europe 31% IFG, Meraklon
Polyamide 6.6 Airbag Fibers Europe 53% Invista, Nexis
RPET Flakes Europe 6% Freudenberg, STF
RPET Fibers Europe 16% Greenfibre, Sion
Purified Ethylene Oxide North America 30% Shell, BASFPET Polymers PET Packaging Fibers Recycling PEO
PET Producer Globally Differentiated Fiber Brand in Attractive HVA Niches
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Note: *Pearl River DeltaSource: Industry Data, IVL Analysis
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PETRevenue
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
Fibers and YarnsRevenue
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
FeedstockRevenue
THB in million
Focused Portfolio in the Polyester Value Chainwith committed total capacity of approximate 9 million tonnes by 2016
• 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
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146,418
145,121
70,27447,968
64,477
70,391
PET
Fibers and Yarns
Feedstock
▪Hygiene Fibers▪Bi-component Super Absorbent Fibers
▪Recycled Fibers▪Medical Application▪Mono Filament▪Non-woven
▪Spinning Fibers▪Spinning Drawn Yarns▪Partially Oriented Yarns▪Regular Filament Yarns
▪Water Grade▪CSD Grade▪Reheat Grade▪Hot Fill Resin▪Film/ Sheet Grade▪Semi Dull
▪Purified Terephthalic
Acid
▪Ethylene Oxide▪Ethylene Glycols
PTA PET Polyester Staple Fibers High Value AddedProducts
▪Specialty Film▪Can Liner Resins▪Barrier Resins▪Low Melt Polymer▪EBM PET▪rPET & Sb-free Resins▪Compounding Resins▪Medical Application▪High IV▪Refill Grade
Leading polyester chain producerDiversified Product Portfolio
Feedstock Polymer
21% 79%
MEG
68% 8% 24%
Based on 2013 production volume
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Recycling for Sustainable Future GrowthIVL Global Recycling Platform 2014
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North America Europe Asia
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1
3
57
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Recycled Polymers Recycled Fiber Flakes
Alpha Pet, USA
Auriga, USA
IV Polymers, Mexico
IV Ecomex, Mexico
Wellman, Ireland
Wellman, France
Wellman, Netherlands
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IPI NPT, Thailand5
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Technology + Production Know How
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Partnering Closely with Global MajorsWorld’s most famous brands
World-class Raw Material Suppliers World-class Technologies World-class customer base globally
Partnership
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Polyester Value ChainBridge between petrochemicals and FMCGs
PTA Plant
PolyesterPolymer Plant
MEG Plant
Aromatics (PX)Plant
MEG (0.34)
PTA (0.86)
Steam Cracker
Refinery
PET Film
Polyester Fiber
PET Resin
Energy & Upstream Petrochemicals
PX and Ethylene
Consumer Staple
Key end use markets
Food & Beverage
Personal Care & Home Care
PharmaceuticalsElectronics
ApparelHome Textile
Non-wovenAutomotive
SpecialtyPolymers
Specialty Fiber
Polyester Chain
PTA, MEG and Polyester
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INDORAMA VENTURES PCLExperienced Board of Directors
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Executive and Non-executive Directors
S.P. Lohia
*****Chairman
(Non-executive)
Aloke Lohia
*****NCCG Committee
Sustainability & Risk Management
Committee
Suchitra Lohia
*****CSR Committee
D.K. Agarwal
*****Sustainability &
Risk Management Committee
Amit Lohia
*****Director
(Non-executive)
UdayGill
*****Sustainability &
Risk Management Committee
Rathian Srimongkol
*****Audit Committee Sustainability &
Risk Management Committee
WilliamE. Heinecke
*****NCCG Committee
Kanit Si
*****NCCG Committee
Dr. Siri Ganjarerndee
*****Audit Committee
NCCG Committee
Independent Directors
S.P. Khaitan
*****President
Wool
MarisSamaram
*****Audit Committee Sustainability &
Risk Management Committee
Russell Kekuewa
*****Sustainability &
Risk Management Committee
* Mr. Apisak Tantivorawong resigned from the IVL Board, effecitve 17 August 2015.NCCG - Nomination, Compensation and Corporate Governance Committee
Recent Recognitions, Strong Commitment
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Forbes 2014 Asia’s Fab 50
Companies
ICIS2014 ICIS Top 100 Chemical
Companies
BCG2014 BCG Global
Challengers
IHS 2014 Chemical Week’s
Billion-Dollar Club
SETFive-Star Corporate
Governance Rating 2013
IODAudit Committee of the Year
2013
IODBoard of the Year
2013
CSR Recognition Award 2014
Key Strategic Drivers
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ProductDiversification
Integration
Asset Portfolio Optimization
▪ Sustainability as key business driver▪ Recycling capabilities and increasing use of RPET
▪ Expand presence in attractive, growth HVA segments (e.g. Automotive, Hygiene)
▪ Enhance integration of downstream and intermediates businesses for margin resilience
Sustainability
▪ Continued reinvestment and active asset portfolio management to stay ahead of the cost curve (e.g. Europe)
Geographic Diversification
▪ Expand access to key developed and developing markets (Turkey, Africa, Asia, Middle East)
Operational Excellence
▪ Relentless focus on operational excellence▪ Well-defined optimization plan
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Looking with Confidencein the Future
New Markets New Products ‘Green’ SolutionsUnderpenetrated Emerging Markets Continued Production Substitution Lowest Carbon
Footprint
IVL – Delivering Superior Shareholder Value
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Our Strategic Levers
Scale, geography, innovation
▪ Long-Term Commitment
▪ Integrated Business Model
▪ Market Access
▪ Operational Excellence
▪ Innovation
▪ Sustainability
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Thank you for your attention
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Dank u
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Salamat Po
Ačiū
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Grazie
Thank You
Terima kasihMerci
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