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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!