Company Presentation March 2017ivl.listedcompany.com/misc/presentation/20170320-presentation.pdf · 2 Our vision: “To be a world-class chemical company making great products for

1 Our vision: “To be a world-class chemical company making great products for society”

Company Presentation

March 2017


Disclaimer

All such factors are difficult or impossible to predict and contain uncertainties

that may materially affect actual results. New factors emerge from time to

time, and it is not possible for management to predict all such factors or to

assess the impact of each such factor on the Company. Such forward-looking

statements are also 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. Any forward-looking statements are not guarantees of future

performance and 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, except as may be required by

applicable laws and stock exchange regulations. The above and other risks

and uncertainties are described in the Company’s most recent annual

registration statement (Form 56-1), and additional risks or uncertainties may

be described from time to time in other reports filed by the Company with the

Securities and Exchange Commission of Thailand and the Stock Exchange of

Thailand. Given the aforementioned and other 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 must 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.

This presentation and certain statements included herein contain “forward-

looking statements” about the [financial condition and results of operations]

of Indorama Ventures Public Company Limited (the “Company”), which are

based on management’s current beliefs, assumptions, expectations and

projections about future economic performance and events, considering the

information currently available to the management. 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, identify or signal the presence of

forward-looking statements 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, are not statements of historical facts and

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 the expectations of future

results, performance or achievements expressed or implied by such forward-

looking statements.

Factors that could contribute to such differences include, but are not limited

to: the highly competitive nature of the industries in which the Company

operates; a potential recurrence of regional or global overcapacity;

exposures to macro-economic, political,

legal and regulatory risks in markets where the Company operates;

dependence on availability, sourcing and cost of raw materials; ability to

maintain

cost structure and efficient operation of manufacturing facilities; shortages or

disruptions of supplies to customers; operational risks of production facilities;

costs and difficulties of integrating future acquired businesses and

technologies; dependence of informal relationships with other Indorama

group entities in Indonesia and India; project and other risks carried by

significant capital investments including future development of new facilities;

exchange rate and interest rate fluctuations; pending environmental lawsuits;

changes in laws and regulations relating beverage containers and

packaging; the impact of environmental, health and safety laws and

regulations in the countries in which the Company operates.


0.0

2.0

4.0

6.0

8.0

2012 2013 2014 2015 2016

0

4

8

12

16Necessities Business

Asia EMEA NA Production (MMT)

MMT EBITDA THB B

0

4

8

12

16

0.0

0.5

1.0

1.5

2.0

2012 2013 2014 2015 2016

EBITDA (THB B) Production (MMT)

MMT EBITDA THB B

Indorama Ventures At a Glance

Note: Core Financials, Inventory gain loss calculation methodology have been revised to reflect core financials more appropriately.

Historical core financials have bee restated accordingly. There is no change in reported financials

HVA Business

30.6%

THB 175B

Investment

Headroom

2017 to 2020

THB 276B

Enterprise Value

Dec’16

THB 35B

Planned Capex

2017 to 2020

Global #1 Thai Company with 67 sites in 21 countries

and 4 continents

Global #1 Integrated PET producer with ~20% market share

Aiming to be a World-Class Chemical Company

28.1% 33.6

% 66.4%

Retail

Foreign Institutions

(including NVDR 100%)

Domestic Institutions

Free

Float

Promotors

35.5%

36.4%

Shareholding Structure Mar 7, 2017

19%

49%

32%

49%

35%

16%

2016

EBITDA

THB 27B

High Value

Added:

Automotive

Hygiene

Industrial

Packaging

Specialty-

Chemicals (PEO,

IPA, NDC etc.)

Asia

Necessities: PET

PTA

Necessity Fibers

West

Necessities: PET

PTA

MEG

Ethylene &

Propylene (4Q17)

Volumes

EBITDA

EBITDA Margins%

EBITDA Margins%

6.7% 5.7%

6.7%

7.2%

8.4%

7.0% 8.5% 9.5%

13.5% 14.4%


Global Revenue

2016 Revenue = $7.2B

21 Countries, 67 Sites, 4 Continents

Diversified Earnings Mix

% of Core EBITDA

Share of HVA/Western Necessities >80% and

Growing

Vitality Index (%)

Innovation in PET, Fibers &

Chemicals

11 R&D Centers, 250+ Patents, >20% Vitality

Index

Key Drivers to

Success

Powered by 14,000+ Employees Worldwide

EMEA

32%

Asia

30%

North America

38%

East

Necessities

West

Necessities

HVA

16%

35%

49%

0

5

10

15

20

25

2012 2013 2014 2015 2016


Delivered

Record

Performance

in 2016

Strategy, Execution and Passion Enables Outperformance

Financial • EBITDA THB 27.4B, 25% YoY

• Net Profit THB 9.7B, 57% YoY

• ROCE expands to 10.4%

• EPS THB 1.79; 5th consecutive annual growth

• TSR of 68% YoY outpaced S&P Chemical Index

Operational • 24% volume YoY

• EBITDA margin expands to 10.7%

• BP Decatur and Cepsa acquisitions delivered 19% EBITDA margin

• Expansion in Asia PTA EBITDA margin mainly reflective of operational

excellence

Strategic • Emergence as the 2nd largest PET producer in high-growth India market

• PTA/PX integration in a disciplined North America market

• Global Leadership into unique IPA and NDC feedstocks

• Rotterdam expansion by mid-2017, to complete integration into PTA in

EMEA

• U.S. olefins gas cracker on track and on budget for start up by end 2017

Note: Core Financials


5.3 5.8

6.2 7.0

8.7

2012 2013 2014 2015 2016

IVL Production (MMt)

14.3 14.7

18.5

22.0

27.4

2012 2013 2014 2015 2016

EBITDA (THB B)

1.4 1.7

3.9

6.2

9.7

2012 2013 2014 2015 2016

Net profit after NCI (THB B)

0.30 0.35

0.77

1.06

1.79

2012 2013 2014 2015 2016

EPS (THB)

Note: Core Financials, 2013/14 are restated numbers following changes in accounting policy/others

Long-term Performance Record On Track with Announced Plan 2020

IVL Plan 2020


Major Global Customers

Major Global Customers

$76M EBITDA

3 Countries

1,998 Employees

0.7 MMt

Capacity

PET &

Packaging Home

&

Apparel

100% Merchant Integration 50% Captive 50% Merchant Integration

2007

Industrial

10.5 MMt

Capacity

$775M EBITDA

14,600 Employees

Feedstock

Hygiene

PET &

Packaging

Home

&

Apparel

2016

21 Countries

Automotive

11 R&D

Centers Bio &

Recycling

Realizing the Power of Incrementalism Transformed from the Past, Ready for the Future

Source: Core financials


13.9%

9.0%

12.7%

15.3% 15.7%

7.3% 6.0%

8.0% 9.2%

10.4%

0

300

600

900

1,200

1,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E

PET Fibers PTA MEG IVL ROCE

Source: Industry Data, IVL Analysis

Note: Fibers = PSF premium over PET, PTA = Spread over MX x 0.86, MEG = Spread over Ethane/Naphtha x 0.34

IVL ROCE (%) Industry Spreads, $/MT

IVL Differentiation with Scale

creates Industry Leadership Riding the Waves

Strategy, Execution and Passion Enables Outperformance


EBITDA Growth from 2007 to 2020

10

Polyamide 66 StreamPET

PTA

Packaging

Fibers

HVA

EOEGPolypropylene Stream

Ethylene/Propylene

Polyester Stream

Polypropylene Stream

HVA

IPA

NDC

2007A 2012A 2016A 2020 est.

US Gas Cracker

NDC

PX

IPA

PTA NA

PET EMEA/HVA

EOEG/Necessities

EOEG/HVA

PTA EMEA

PTA Asia

Fiber NA

Fiber EMEA

Pkg EMEA

PET NA/HVA

PET ASIA/HVA

Wool

Fiber Asia/Necessities

Fiber Asia/HVA

Pkg Asia

PET NA/Necessities

PET EMEA/Necessities

PET ASIA/Necessities

$76M

20

07

20

12

20

07

20

12

20

16

20

07

20

12

20

16

20

20

20

07

$775M

$461M

High Growth

with Diversified

& Integrated

Earnings Profile

Enhancing Value Add and Hedging the Value Chain

Note: Core 2016 Financials


247 286

195 205

197 271

640

775

-100

100

300

500

700

900

1100

1300

1500

2015A 2016A 2018 est. 2020 est.

PET Fibers Feedstock

340 348

126 185

173 230

640

775

-100

100

300

500

700

900

1100

1300

1500

2015A 2016A 2018 est. 2020 est.

EBITDA $M

NA EMEA Asia

313 373

246 267

81

123 640

775

-100

100

300

500

700

900

1100

1300

1500

2015A 2016A 2018 est. 2020 est.

HVA West Necessities Asia Necessities

Growth in Every Segment, Region and Portfolio

Note: 1)Core Financials

2)Segments total may not match to IVL due to holdings segment


775

2016A Cost Volume Mix AnnouncedProjects

Margins 2020 EBITDAest.

Headroom forGrowth

2020 EBITDAPotential

Projects

PET Aromatics

Fibers Olefins

Key Growth Drivers Going Forward $1Billion Total Announced Capex in 2017 to 2020

Margins

Fibers PET

Olefins Aromatics

EBITDA $M

Note: Headroom for growth consider exercise of warrants W1 and W2.

Core Financials, Aromatics= PTA, PX, NDC,IPA. Olefin=EOEG and Gas Cracker in USA

Strategic Growth

Opportunities

<0.4 0.88

Net Operating Debt/Equity


Total Shareholders Return

22%

68%

12%

19%

0% 20% 40% 60% 80%

Feb 2010- 2nd Mar

2017

Mar 2016- 2nd Mar

2017

S&P Chemicals Index CAGR(Bloomberg)

IVL TSR CAGR

Outperforming the Industry

Delivering

Superior

Shareholder

Returns

(since IVL IPO)

(1-Year)


Key Takeaways

2016

Earnings Growth in Every Segment

Tough Business Environment

2017 to 2020

Improvement in Industry Fundamentals

IVL - Value Enhancing Projects

Sizeable headroom (~$5 Billion) to Fund

Growth Opportunities and Further

Improve Financial Ratios

Building World-class Organization with

Sustainability as our Competitive Advantage


Creating a More Valuable IVL

A Global Leader

in PET

2007

A World-Class

Chemical Company

Developing Products

for Unmet Consumer

Needs

2020 & Beyond

A Global, Integrated

Leader in PET and

Fibers with HVA

Portfolio

2016

Backups

PET and Feedstock


Global footprint creates a natural currency

hedge

Earnings mostly in US$ with costs in local

currencies

Expecting improvement in business

environment as demand-supply starts

balancing

Business Environment Integrated PET Chain

Higher cost expectations (interest rates

and crude oil) create challenges for

marginal operators

Higher freight rates improve domestic

margins

Industry

Exchange Rate

Crude Oil


Global Supply Tightening & Improving Operating Environment

Better Supply-Demand Balance

Global Polyester and PTA Incremental Supply-Demand (MMt)

Note: Polyester includes PET, Fibers and Film

Supply = Design Capacity * 85% (maintenance, seasonality, etc.)


Polyester PTA

24.1

13.3 15.5

17.7

8.6

-4.4

2012-2016 2017-2021

21.4

6.0

12.0

15.0

9.4

-9.0 2012-2016 2017-2021

71%

73%

78%

84%

Su

pp

ly

Gro

wth

Dem

an

d

Gro

wth

Su

pp

ly

Supply

Su

pp

ly

Su

pp

ly S

up

ply

Gro

wth

Dem

an

d

Gro

wth

Dem

an

d

Gro

wth

Su

pp

ly

Gro

wth

Su

pp

ly

Gro

wth

Dem

an

d

Gro

wth

MMt MMt

Op rate%


Olefins Integration to Provide Full Value Chain in the USA Superior Margins over Asian Naphtha Based Operators

4Q15 1Q16 2Q16 3Q16 4Q16 1Q17E

IVL US Integrated Olefins Margins vs Asia MEG Integrated Margins ($/MT)

IVL US EO/EG

standalone margin

Asia MEG

standalone margin

IVL US Olefins

standalone margin

Asia Ethylene

standalone margin

Note: Margin = End Product Price over Feedstock Cost less By-Product Credits plus Variable Cost


IVL U

S

Ole

fins

IVL U

S

EO

/EG

Asia

ME

G

Asia

Eth

yle

ne


U.S.A. Dual-Feed, Gas Cracker On Track and On Budget For Start-up by End 2017

Feedstock secured

under long term

agreement

Focused on HSE

>650,000 man-

hours without any

LTI

70% complete

as of Jan 31, 2017

Environmental

permits received

Advantaged shale gas feedstocks to drive margin expansion


NDC: A Unique Feedstock Sole Commercial Producer Globally

High temperature > 100 C

Gas barrier properties, Co2

Radiation absorption

To Unlock Full Potential

Unique properties

Long term emerging market developments


Isophthalic Acid (IPA): A Unique Feedstock Sole Producer in Europe

Segment Key End Markets

PET

Resins

Coating

Resins

Textiles &

Specialties

Polyester

Resins

#2 Producer Globally

Captive Consumptions and

Growing Merchant Sales

Production to be doubled in

2018 (over current annualized volumes)


247 286

197 271

444

557

0

200

400

600

800

1000

1200

2015A 2016A 2018 est. 2020 est.

PET Feedstock

284 292

65 137

95

129 444

557

0

200

400

600

800

1000

1200

2015A 2016A 2018 est. 2020 est.

EBITDA $M

NA EMEA Asia

128 197

246

267

70

94 444

557

0

200

400

600

800

1000

1200

2015A 2016A 2018 est. 2020 est.

HVA West Necessities Asia Necessities

Business Plan 2020: PET & Feedstock Segment

70% 74% 76% 75% % of

IVL



Fibers


Traditional Apparel

Home

Technical Clothing

Automotive

Protection

Agro

Filtration

Construction

Geo Tech Industrial

Activewear

0

1

2

3

4

5

6

7

-5 -3 -1 1 3 5 7 9 11 13 15

Relative Market Share

Attra

ctiv

e

Ave

rag

e

Un

attra

ctiv

e

Lower than

world average

Higher than

world average

Ma

rket

att

rac

tive

ne

ss

Target Increased Share in High Growth Segments Continued Identification and Participation in Attractive Segments

Maintaining share in necessities market to absorb overheads


0

5

10

15

20

25

2012 2013 2014 2015 2016

Innovation Platform The Backbone of New Product Pipeline

0

20

40

60

80

100

120

140

160

180

200

2012 2013 2014 2015 2016 2017

Hyg & Med Auto & Ind Home & App

0

500

1,000

1,500

2012 2013 2014 2015 2016

Old Products Auto & Ind

Hyg & Med Home & App

New product pipeline delivering continued lead

80 R&D resources 8 R&D centers 250+ Patents

New product pipeline (KMT) Vitality Index (%) HVA EBITDA ($M)

est.


IVL Fibers: Competitive Advantages & Leadership Leading Position in Attractive Segments

Position Segment Region Share

Bi-component PP Fibers World 28%

Air Bag Yarns Europe 40%

Recycled Fiber (RFiber) Europe 16%

Monocomponent PP Fibers N America, Europe 31%

PLA for shale gas fracking N America/Europe 95%

Specialty industrial fibers N America/Europe 22%

Tire Cord China/Asia 15%

#1

#1

#1

#1

#1

#1

#2

http://app.gwv-fachverlage.de/atz/cms/images/evonik_071015.jpg


195 205 0

50

100

150

200

250

300

350

400

2015A 2016A 2018 est. 2020 est.

Fibers

56 56

61 48

79 102

195 205

0

50

100

150

200

250

300

350

400

2015A 2016A 2018 est. 2020 est.

EBITDA $M

NA EMEA Asia

40 49

44 43

45 35

66 78

195 205

0

50

100

150

200

250

300

350

400

2015A 2016A 2018 est. 2020 est.

Automotive Hygiene & Medical

Industrial Home & Apparel

Business Plan 2020: Fibers

30% 26% 24% 25% % of

IVL



Corporate


Governance Framework

Independent Directors

7 Independent Directors

7 Executive and Non-Executive Directors

Executive Committee

Audit Committee

Nomination, Compensation and

Corporate Governance Committee

Sustainability and Risk

Management Committee 6 Executive Members

14 Board Members 3 Sub-Committees

Rathian Maris William Dr. Siri Kanit Russell

Chakramon

Srimongkol Samaram E. Heinecke Ganjarerndee Si Kekuewa

Independent Independent Director Independent Director Independent Independent Independent Director

Phasukavanich

Independent Director

Director ***** ***** Director Director ***** *****

***** Independent Director Founder, Chairman ***** ***** Former Vice Ex Industry Minister

President and and Chairman of Audit and CEO, Minor Director of the Bank Executive Vice President for South Thailand

CEO, Krungthai Committee, Siam International PCL and of Thailand Board, President, Bangkok and Southeast Asia,

Card PCL Commercial Bank PCL its subsidiaries Former Assistant Bank PCL Tetra Pak

Governor at Bank of

Thailand

Strong Governance Five Star CG Rating Thailand, Committed to Sustainability


Committed Towards Sustainability

IVL Percentile Rank vs DJSI World Chemical Companies 84

69

2016 2015 2014

20

Bronze Class: RobecoSAM’s

Sustainability Yearbook 2017

#1 in SET Index: Bloomberg

ESG Disclosure Scores

A constituent of:

the FTSE4Good ASEAN5 Index

and the FTSE4Good Emerging Index

MSCI ESG Rating: B

#1 Thai MNC: Transparency

in Corporate Reporting

Gold Recognition:

Most preferred supplier

Climate Change Score: B


Unmatched Global Presence in 21 Countries with 67 Sites


Polymer

PET

Polypropylene (PP)

Nylon 66 Fibers

IPA

PTA MEG

*Ethylene Paraxylene

*Ethane/Propane Cracker Oil Refinery

PEO

*Propylene

HVA PEO HVA Nylon 66 Fibers HVA PP Fibers HVA Polyester Fibers PET Resin PET Film Polyester

Fibers

PP Fibers

Benzene

Butadiene

Ammonia

Shale Gas or Oil

Metaxylene

The Indorama Ventures Unique Value Chain Integrated, Diversified, Necessities and HVA

ADA/ADN

Capacity Reservation

Coatings

Note: * Ethylene Gas Cracker of IVL is expected to start by 4Q17

IVL Necessities Value Chain IVL HVA Value Chain Value chain supplying raw materials to IVL

Polyester Fibres

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi8-rDjgrbLAhVXBY4KHYEoA20QjRwIBw&url=http://businessdayghana.com/nestles-ideal-milk-promotes-innovative-cooking/&psig=AFQjCNEXuLpBM8Nu5HjMqAtZseyH2vTefg&ust=1457695956086225

http://www.google.co.th/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjV2J347a7OAhWKtI8KHY3lCqwQjRwIBw&url=http://www.biorizon.eu/community/members&psig=AFQjCNEKSGPwoNd_y2IKgH52lXntBiN9WA&ust=1470643981243199


4Q 2016 Performance Highlights

Production

2.3MMt +27%

YoY

+43%

YoY

Core

Net Profit

THB 2.6 B

+73%

YoY

Core EPS after

PERP

THB 0.49

+89%

YoY

EPS after PERP

THB 0.56

+7,036%

YoY

Core

EBITDA

THB 7.3 B


Glossary of commonly used terms

Core =

Core financials are calculated as reported financials less Inventory gain/ (loss)-tax adjusted as

applicable and less extraordinary items, if any to reflect operations before any extraordinary items

HVA = High Value Added, which is defined as below:

a) all Fibers & Yarns in Western Countries

b) PEO (purified ethylene oxide) at our EOEG site in NA

c) all downstream packaging businesses (Preforms, Bottles, Closures etc.)

d) all specialty PET resins including recycled products globally

e) all specialty Fibers & Yarns in Asia including recycled products

f) IPA (purified isophthalic acid) with Cepsa, Spain acquisition

g) NDC (naphthalene dicarboxylate) with BP Alabama, USA acquisition

Necessities = Items not classified as HVA but which are essential part of our daily lives

West = North America & EMEA

EMEA = Europe, Middle East & Africa

West Necessities = Necessities in the West (also termed “special position” )

East Necessities = Necessities in Asia (also termed “cyclicals”)

Feedstocks = PTA, MEG and IPA as they are raw materials for PET resin and/or polyester fibers

West Feedstocks = Feedstocks in West region

Documents

Company Presentation March 2017ivl.listedcompany.com/misc/presentation/20170320-presentation.pdf · 2 Our vision: “To be a world-class chemical company making great products for