INDORAMA VENTURES CAPITAL DAY 10 th January 2014 Indorama Ventures PET Business Segment North...

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INDORAMA VENTURES CAPITAL DAY

10th January 2014

Indorama Ventures PET Business Segment North America 2014

PET NAM - Business Value Enhancement

2009 2013E 2018

• Market leadership

• Virtual Integration

• HVA portfolio

• Only rPET producer in NAM

• Latest technology

• Portfolio of competitive assets

• Market reach covering Latin America

• Catalyst for IVL integration strategy into Polyester value chain

• ROCE to improve –

• Higher capacity utilisation

• Growth in HVA & recycling

• Productivity projects

• Efficient working capital management

Volume in KMT & Revenue in MM$

3

Starpet

Alphapet

Invista Auriga, US & Mexico

PET North America Growth Journey..Lead by Greenfield and successful acquisitions

Cumulative Capacity (KMT)

120 230 690* 1560*

Year 2003 2007-08 2009-10 2011-13

Green Field Acquisition

4 sites- 2 countries

Brownfield

StarpetDBN

* Based on full year capacity

Capacity Share-

34%

Parameter IVL Company A Company B Company C Company D

Cost competitiveness

Geographical Diversification

Raw Material Integration(PTA & MEG)

Market Reach

Speciality Portfolio

Financial Strength

Recycling Capability

North American PET Producer’s… Competition We RespectIVL Leadership with Virtual Integration , Latest Technology asset & Speciality Portfolio

High Moderate Low

5

North America PET Market

Source: SBA/CCI and Indorama Estimation

CSD, 26%

Water, 21%

Hot Fill, 12%

BCF, 7%

Sheet/Film, 14%

Others, 20%

PET Market

CSD, 43%

Water, 15%

Hot Fill, 11%

BCF, 4%

Sheet/Film, 15%

Others, 12%

IVL Product Mix

Film27%

Medical11%

Tech fil/mono fil

57%

Others5%

HVA Market

6

Differentiated, Premium PET Resins by IVL

PolyClear® EBM PET 5505 – for extrusion blow-molded (EBM) PET containers

• EBM containers with integrated handles that can be recycled with PET

• Potential to replace 50 k tons of 1 million tons of HDPE, PP and PVC EBM market with PET by 2018

OxyClear® Barrier PET – for longer shelf life of oxygen sensitive products

• Extend shelf life for food/beverages such as juice, ketchup, beer, wine, pasta, RTD meals

• Leading position in PET barrier for nutritional drinks with 200 ml bottle for BOOST of Nestle Foods

Tropicana® a registered Trade name of PepsiCo; BOOST® a registered trade mark of Nestle

7

Key Sustainability Initiatives by IVL in NA

• IVL is a key supplier of PET resins using feed stocks from renewable sources

• In addition to being renewable in nature, these resins are also fully recyclable

• IVL played a key role in the launch of Coca Cola’s DASANI® water PlantBottle® packaging, which uses such resins

• IVL is currently the only producer in NA supplying rPET resins using an unique in-pellet Post Consumer Recycle (PCR) solution

• Current supplies of in-pellet PCR are from IVL facilities in Decatur AL and Spartanburg SC. By Q1’14, IVL Mexico will also have this capability

• These resins are being widely used by the various brand owners

• IVL is committed to continuously increasing its participation in the growing rPET segment

PlantPET™

8

IVL StraegyMaximizing Profitability through Innovation & Sustainability

Thank you!