A Global Leading Thai Chemical...
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A Global Leading Thai Chemical Company
January 28, 2016
IVL Capital Markets Day
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D.K. Agarwal
CEO PET & Feedstock The Most Global Polymers Company
Tom Zaiser
CEO FiberVisions The World’s Fiber Company
Boriboon Sangiambut
VP Feedstock Truly Global Integrated Producer
Aloke Lohia
Vice Chairman & CEO A Global Leading Thai Chemical
Company
Today’s Presenters
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D.K. Agarwal CEO PET & Feedstock The Most Global Polymers Company
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The Most Global Polymers Company
PET & Packaging
North America 5 Production Sites
EMEA 10 Production Sites
Asia & ROW 15 Production Sites
49%* Of Production
51%* Of Revenue
$ 4.0 B
42%* Of EBITDA
Recycling
Food
Performance
2016
Capacity 4.6MMt
34% 35%
31%
Resin
Note: *Percentage of IVL 2015E Core Financials
Includes BP Decatur & Cepsa Spain
Beverage
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7% 9%
16%
24%
-20%
-10%
0%
10%
20%
0
1
2
2012 2014 2016 2018
Net Capital Employed ROCE$B
0
250
500
2012 2014 2016 2018
3.6 3.8
4.6 4.8
0
2
4
6
2012 2014 2016 2018
2.6 3.1 3.9 4.3
78%
85% 86% 89%
0
2
4
6
2012 2014 2016 2018
Operating rate
Business Plan 2016-2018: Polymers
Capacity Production
Raw Material Margin EBITDA
MMt MMt
ROCE
Revenue
90% 84% 83% 82%
4.3 4.4 4.3
5.3
0
2
4
6
2012 2014 2016 2018
HVA Necessity$B
$M
91% 79% 76%
75%
0.7 0.8
0.9
1.0
0.0
0.4
0.8
1.2
2012 2014 2016 2018
HVA Necessity$B
Note: PET + Packaging
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Packaging Personal Care Automotive Medical Industrial Functional Electronics
>9bn
People by 2050 Of New Middle Class in
Next 20 Years
3bn
Of the World Will Live in Cities
60%
More Energy Needed by 2050 if Business As Usual
2x
Diversified and Growing Markets
Translating Megatrends into Demand for Our Products
Source: Industry Data, IVL Analysis
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Supportive Macro and Industry Outlook 2016-2018
Economy Industry Crude Oil Forex
Macroeconomic and industrial growth
Low oil adding upside to global GDP
China manufacturing discipline
Increased substitution demand
Strengthening USD positive for IVL
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Population Growth • Increase in population and changing
demographics lead to greater demand
for necessities such as food and
beverages
Urbanization, Middle Class • Growing middle class and urbanization
in emerging markets
Higher Income Levels • Wealth increase and upside
purchasing power in emerging markets
Infrastructure Development • The prevalence of supermarkets and
convenience stores allows for ready
access to packaged food and
beverages as well as impulse
purchase spending
Attractive Industry Dynamics and Trends Compelling Product Attributes Driving PET Success
Health Awareness • Poor quality of tap water in emerging
countries and health awareness
driving bottled water consumption
Product Innovations • Continued improvements in design,
process, technology create new
product applications
Brand Differentiation • Brand owners increasingly use
packaging as a source of
differentiation
Lifestyle Changes • Demand for more convenient and
aesthetic packaging
• Consumers are increasingly
encouraged to shift towards more on-
the-go consumption
Source: IVL Research
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Continued PET Consumption Growth
PET Remains the Material of Choice
12 13
15 15 15
16 17 17
18 19
20 21
22 22
23 24
2005200620072008200920102011201220132014
2015E2016E2017E2018E2019E2020E
Water CSD Other Beverages Packaging & Sheet Beer
12 13
15 15 15
16 17 17
18 19
20 21
22 22
23 24
2005200620072008200920102011201220132014
2015E2016E2017E2018E2019E2020E
Asia Europe North America Rest of World
Global PET Demand By Product Global PET Demand By Region
MMt MMt
Source: Industry Data, IVL Analysis
~1 million tonnes of new PET consumption every year
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Structural Changes Underpin On-Going Growth
Lower Prices Support PET Growth with Material Switching
Other Materials Created Additional Space for PET to Grow
-2%
-14%
-32%
-42% -41%
Glass Paper Aluminum HDPE PP PET
Price changes from 1/2014 through 01/2016YTD
Source: Industry Data, IVL Analysis
The Most Cost Effective Alternative
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Undisputable PET Industry Leader Clearly The #1 Producer and Sole Global Player
Key Highlights Serving Global Customers Locally
>15
%
Specialty
Polymers
Recycled
Resins
#1 Global market
position
18%
Global market
share
1st Quartile
Manufacturing
Assets
Industry
Leader
Truly
Local
High Value
Added
Cost
Position
Asia 7 production sites
Capacity share:
Thailand 55%,
Indonesia 45%, India
12%, China 6%
HVA and recycling
EMEA
7 production sites
Capacity share:
Europe 33%, Turkey
45%, Nigeria 100% HVA
North America
4 production sites
Capacity share 33%
HVA and recycling
Europe
Africa
India
US China
SEA
Turkey
Mexico
Source: Industry Data, IVL Analysis
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IVL North America PET Business
Sustainable Advantage of Domestic Production
Business Drivers Strong Production Platform
Market Drivers
Demand growth 2% CAGR
Low energy prices support low cost of
production
Potential anti-dumping duties in USA to
result in imports replacement
Business Drivers
Growing HVA production
Attractive pipeline of new innovative
products
Recycling at the heart of our strategy
Synergies across the portfolio
Domestic Presence Ensures Competiveness
33% 13%
22%
18%
11%
8%
10%
26%
24% 34%
378 373
YTD Nov14 YTD Nov15
China Oman India Taiwan Others
ADD
Affected
251 KMT
(66%)
ADD
affected
147 KMT
(39%)
US PET Imports (Non NAFTA)
US
Mexico
KMT
N.America 4 Sites
Capacity: 1.5 MMt
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IVL EMEA PET Business
Customer Reach Beyond Compare
Business Drivers Strong Production Platform
Market Drivers
Demand growth at 2% CAGR
Reducing imports as domestic production
becomes more competitive
Industry consolidation
Business Drivers
Unbeatable market and customer reach
Turkey market with high growth potential
Growing HVA production
Synergies across the portfolio
Domestic Presence Ensures Competiveness
KMT
760
480
2014 2015
-36%
EU & Turkey PET Imports
Domestic Production Replacing Imports
Europe
Africa
Europe 5 Sites
Capacity 1.1 MMt
Africa 1 Site
Capacity 0.1MMt
Turkey 2 Sites
Capacity 0.4MMt
Source: Industry Data, IVL Analysis
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IVL Asia PET Business
Domestic Presence in Attractive Markets
Business Drivers Strong Production Platform
Market Drivers
Strong demand growth at 6-10%
Industry consolidation
Domestic sales and product differentiation
provide advantage
Business Drivers
Entry into India market
Acquisition of Bangkok Polyester
Growing HVA portfolio
Synergies across the portfolio
Domestic Presence Ensures Competiveness Growing HVA Portfolio
India China
SEA India 1 Site
Capacity 0.2 MMT
China 1 Site
Capacity 0.6 MMt
SEA 5 Sites
Capacity 0.6 MMt
KMT
2012 2015 2018
HV Germanium 5 Gallon Bottle Blood tube EBM Bio
Specialty PET Sales Volume
Source: Industry Data, IVL Analysis
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Food & Beverages
Diversified High-Value Add PET Portfolio Inventing the Future Everyday
End Markets End Use Applications
Solar panels
Wind turbines
LED
Pharma
Blood tubes
Face shields
Bio-based PET resins
Recycled PET bottles
Recycled PET trays
Beer, milk, wine applications
Oxygen barrier resins
Multi-serve resins
Bio & Recycle
Medical
Industrial & Electronics
Personal & Home Care
Note: Examples only and not exhaustive
Shampoo containers
Body care
Cosmetics
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Tom Zaiser CEO FiberVisions The World’s Fiber Company
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The World’s Fibers Company
North America 5 Production Sites
EMEA 7 Production Sites
Asia & ROW 11 Production Sites
19%* Of Production
27%* Of Revenue
$ 2.1B
29%* Of EBITDA
2016
Capacity 1.6MMt
16%
55%
28%
Differentiated Portfolio
Automotive
Apparel & Home
Personal Care
23% 15%
Industrial
24% 38%
Note: *Percentage of IVL 2015E Core Financials
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0.9
1.4 1.6 1.6
0
1
2
3
2012 2014 2016 2018
4% 8%
15% 20%
-20%
-10%
0%
10%
20%
30%
0
1
2
2012 2014 2016 2018
Net Capital Employed ROCE$B
0.8 1.1 1.5 1.5
92%
85%
93% 97%
50%
60%
70%
80%
90%
100%
0
1
2
3
2012 2014 2016 2018
Operating rate
Business Plan 2016-2018: Fibers Segment
Capacity Production
Raw Material Margin EBITDA
MMt MMt
ROCE
Note: Core financials, IVL Analysis
Revenue
25%
25% 33% 35%
1.4
2.2 2.4
2.7
0
1
2
3
2012 2014 2016 2018
HVA Necessity$B
$M
25%
16% 15%
16%
0.4
0.8 1.0
1.1
0.0
0.5
1.0
1.5
2012 2014 2016 2018
HVA Necessity$B
0
200
400
2012 2014 2016 2018
EBITDA
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IVL’s Shared, Leveraged Business Model Synergistic Fiber Portfolio
Automotive Personal Care Apparel & Home Industrial
IVL Culture
Sustainability
Global Procurement
Operational Excellence
R&D Platform
IT Platform C
us
tom
ers
Ma
rke
ts
Tech
no
log
ies
Man
ufa
ctu
ring
Inte
llec
tua
l Pro
pe
rty
Bra
nd
s
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Leadership in HVA Segments
Automotive Segment Personal Care Segment
Industrial Home & Apparel
Market Share
2018 1.5%
2015 1.5%
Market Share
2018 1.4%
2015 1.4%
Market Share
2018 4.4%
2015 4.4%
Market Share
2018 22%
2015 21%
8%
58% 13%
12%
9%
1.4% 1.2%
0.9% 0.8% 0.7%
IVL Nanya ZheijiangGuxiandao
Hengli Dura Fiber
2015 Market Size
20KMT
21%
5% 5% 3% 3%
IVL DEX Huvis Nanya FarEastern
2015 Market Size
1.3KMT
7% 6% 5%
4% 3%
Kordsa DuraFiber Hyosung IVL Toray
2015 Market Size
2.7KMT
4.5%
3.3%
2.1% 2.0% 1.9% 1.5%
2015 Market Size
38KMT
Source: Industry Data, IVL Analysis
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Diversified High Value Add Fiber Portfolio Meeting Mission-Critical Demands
End Markets End Use Applications
Airbags
Tires
Seatbelts
Automotive
(Polyester, PA 66)
Shale gas cracking
Geotextiles
Filtration
Industrial
(Polyester, PA 66, PP, PLA)
Specialty apparel
Protective apparel
Bio-active textiles
Home & Apparel (Polyester)
Wound care
Surgical masks
Filters
Medical (Polyester, PP)
Note: Examples only and not exhaustive
Diapers
Wipes
Feminine Hygiene Products
Personal Care
(Polyester, PP)
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-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
2012 2013 2014 2015
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
2012 2013 2014 2015
HVA Has a Lower Volatility of Prices
$/MT
IVL Inventory Gains/Losses and Feedstock Prices Are Highly Correlated
-60
-10
40
90
-400
-200
0
200
400
600
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Changes in PX Price Asia IVL Inventory Gain/(Loss)
Inventory Gain/Loss: Necessities Inventory Gain/Loss: HVA
% of sales % of sales
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LOW HIGH FUNCTION ORIENTATION
LO
W
HIG
H
FA
SH
ION
O
RIE
NTA
TIO
N
Scope for IVL to drive
functionality
(Co-Branding)
Convergence of performance and fashion
IVL innovation set to gain share
IVL only fiber player with presence across all major demand centers
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Expanding Tire Production Globally
0
500
1,000
1,500
2,000
2014 2015 2016 2018
America Europe China Other Asia ROW
Global Tire Production
195
MM
Tires More Produced
in 2018 than in 2015
92
KMT
More Yarn for Tires
in 2018 than in 2015
MM Units
Source: Industry Data, IVL Analysis
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World’s Airbag Demand Outpaces Car Production
0
100
200
300
400
500
2014 2015 2016 2018
Europe America China Other Asia ROW
Global Airbag Production
MM units 68
MM
More Airbags Produced
in 2018 than in 2015
25
KMT
More yarn for airbags in 2018
than in 2015
Source: Industry Data, IVL Analysis
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0
100
200
300
400
500
600
700
2014 2017 2020
Adult Incontinence Diapers Femcare
Opportunity for Continued Penetration in Personal Care
98% 95%
27%
7%
0%
20%
40%
60%
80%
100%
120%
Diapers Penetration Rate - 2014
Strong Demand for Hygiene Products
Diapers, AI & Fem Care
0
1,000
2,000
3,000
4,000
5,000
6,000
2014 2017 2020
Sanitary Wipes
Global Hygiene NW Demand
Billion Units KMT
IVL is Well Positioned to Capture Growth
Source: Industry Data, IVL Analysis
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Global R&D Platform
Culture of Collaboration
Joint Development
Customer Alliances
Shared Values
Shared Technologies
Converting Strategy into Value
“Sustainable
growth and steady
cash flows
Maximize potential
of existing
businesses
Participate and
grow in leading
future businesses ”
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Boriboon Sangiambut VP Feedstock Truly Global Integrated Producer
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The Most Global Integrated Producer
North America 6 Production Sites
EMEA 3 Production Sites
Asia & ROW 3 Production Sites
2016
Capacity 4.8MMt
40% 38%
22%
32%* Production
22%* Revenue
$ 1.8B
IPA
NDC
Paraxylene
Strategic Integration
PTA PEO
MEG
Ethylene
29%* EBITDA
Note: *Percentage of IVL 2015E Core Financials
Source: Including BP USA & Cepsa Spain M&A, Project Houston
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30
0
100
200
300
400
500
600
2012 2014 2016 2018
EBITDA
2.3 2.3
4.8 5.2
0
2
4
6
2012 2014 2016 2018
5% 7% 10%
17%
-20%
-10%
0%
10%
20%
0
1
2
3
2012 2014 2016 2018
Net Capital Employed ROCE$B
1.9 2.0
3.6 4.8 83% 87%
87% 92%
50%
60%
70%
80%
90%
100%
0
2
4
6
2012 2014 2016 2018
Operating rate
Business Plan 2016-2018: Feedstock Segment
Capacity Production
Raw Material Margin EBITDA
MMt MMt
ROCE
Note: Core financials, IVL Analysis
Revenue
86% 74%
78% 75%
1.1 0.9
1.6
2.0
0
1
2
2012 2014 2016 2018
HVA Necessity$B
$M
83% 77%
77% 80%
0.4 0.5
0.9
1.4
0
1
2
2012 2014 2016 2018
HVA Necessity$B
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Strategic Integration Provides Advantage
North America EMEA ASIA Global
Number of sites
Integration Number of Sites
Integration Number of Sites
Integration Number of Sites
Integration
PX 1 67% - - - - 1 27%
PTA 2 100% 2 75% 2 73% 6 86%
MEG 1 55% - - - - 1 17%
IPA - - 1 100% - - 1 100%
Strategic Integration
Feedstock Security
Reliability of Supply to Customers
Value Chain Capturing
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Complete Value Chain Integration in North America
Downstream Intermediates Upstream Feedstock
PX Capacity: 0.72 MMt
Propylene Capacity: 0.03 MMt
Ethylene Capacity: 0.37 MMt
PTA Capacity: 1.62 MMt
Polypropylene
MEG Capacity: 0.33 MMt
NGLs: Ethane/Propane PP Fiber
Capacity: 0.10 MMt
PET Resin Capacity: 1.52 MMt
Poly Fiber Capacity: 0.12 MMt
PEO Capacity: 0.22 MMt
Crude Oil => Naphtha
IVL NA Facilities Third Parties
Ortho-xylene +
Butadiene NDC
Entry into PET through
acquisition of Starpet
2003 Entry into HVA with
acquisition of Invista
2011 Integration into EO/EG
with Old World
2012 Integration into PTA
with Cepsa
1H15 Ethylene Integration
2015 Integration into PX,
PTA + New HVA (NDC)
2015
Performance
polymers and films
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US Cost Advantage Remains Strong Even At Low Oil Price
Source: IHS
$/ MMBTU
0
5
10
15
20
25
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
2012
201
3
201
4
201
5
201
6
U.S. Ethane Brent U.S. NG
1 Crude, ethane, NG roughly same value
NG decouple from crude.
Ethane remains linked to crude
2 Ethane Decouples
from crude and linked to NG 3
94
244
1021
1175
100
261
881
1104
132 215
507 627
0
200
400
600
800
1,000
1,200
ME Ethane US Ethane WE Naphtha NEA Naphtha
2013 2014 2015
$/MT
$410/ton
Energy Price Relationship
Ethylene Cash Cost
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Project Houston USGC World ScalePlant
0
200
400
600
800
1,000
2,000
2,500
Project Houston USGC WorldScale Plant
Asian Naphtha1MMTPA
0
500
1000
1500
2000
2500
Project Houston
Benefits from Lower Capex and Integration
Note: *Capital reward = Simple 5 years pay back.
**Net Raw Material = Raw Material – Byproduct Credit
Cracker Investment Cost 2015 Ethylene Cost Comparison
$/MT $/MT
Capital Reward* Total Cost
Best in class investment cost offers protection
from low crude / margin environment
Marginal conversion cost penalty offset by
significantly lower CAPEX
~25%
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80%
90% 88% 94%
98% 99%
60%
70%
80%
90%
100%
0
500
1000
1500
2012 2013 2014 2015 2016 2017
Utilization Demand Capacity
Attractive High Value Add IPA Business
Leading Global Position
Limited Number of Market Players Growing IPA Markets
Increasing Capacity Utilization Superior and Steady IPA Margins
260 220
200 200
70 68 50
Lotte CEPSA FHR Formosa MGC Eastman Sinopec
Global IPA Capacity - 2015 (KMT)
23%
20%
9%
48%
KMT (€/MT)
2012 2013 2014 2015
IPA-Meta-Xylene Spread
Ø ~670
Average
Global IPA Demand - 2015 (KMT)
Source: Industry Data, IVL Analysis
~930 KMT
~6-7%
CAGR
PET
Polymers
Coatings
Others
Unsaturated
Polyester
Resins
Own
Tech. ✔ ✔ ✗ ✗ ✗ ✗ ✗
21 77 97 -37 -70 -70
Meta-Xylene Surplus /(Deficit)
Utilization Rate (%)
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Aloke Lohia Vice Chairman & CEO
A Global Leading Thai Chemical
Company
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Touching Billions of Lives
We Are Closer Than you Think
1 in 6 plastic bottles
is made
from IVL polymers
1 in 2 premium baby diapers
is made
from IVL fibers
1 in 4 airbags is made
from
IVL yarns
Source: Industry Data, IVL Management Estimates 2015
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IVL’s Key Essential Elements
EB
ITD
A M
arg
in
Top line growth
Competitive cost
Growing value addition
Effective capacity utilization Resilient products
SCM for reduced cost of delivery
Favorable trends and demographics
Operational excellence
Co
re E
PS
Core EBITDA
Co
st
of
de
bt
Cash Flow
Net debt/Equity
Net debt/EBITDA
Div
ide
nd
pa
yo
ut
Cyclical products
Advantaged Raw Materials Sustainability
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IVL’s Differentiation
EB
ITD
A M
arg
in
Top line growth Competitive cost
Growing value addition
Effective capacity utilization
Resilient products
SCM for reduced cost of delivery
Favorable trends and demographics
Operational excellence
Co
re E
PS
Core EBITDA
Co
st
of
de
bt
Cash Flow
Net debt/Equity
Net debt/EBITDA
Div
ide
nd
pa
yo
ut
Cyclical products
Advantaged Raw Materials Sustainability
Innovation
Technology
R&D
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40
One Company, One Team, One Goal
More than 14,000 People at the Heart of IVL
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32% of Net Revenue
3 Countries
16 Production Sites
3 R&D Centers
>95% Domestic Sales
North America
30% of Net Revenue
13 Countries
21 Production Sites
4 R&D Centers
>95% Domestic Sales
EMEA
Truly Global Production Footprint 21 Countries, 65 Sites, 10 R&D Centers
38% of Net Revenue
5 Countries
28 Production Sites
3 R&D Centers
>75% Domestic Sales
Asia & ROW
Note: Net revenue by sales for 2015E; Domestic sales are sales sold within a region
Including BP USA & Cepsa Spain M&A not icompleted
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Enhancing Our Portfolio
Diversified Markets With Long-Term Growth
6.8 7.5 10.0
Installed
Capacity
Revenue
63% 59% 52% 53%
20% 29% 29% 27%
11% 6% 14% 14% 6% 6% 5% 5%
2012 2014 2016 2018
Pet Fibers & Yarns Aromatics Olefins
53% 50% 42% 42%
13% 19% 14% 14%
26% 23% 38% 36%
8% 7% 5% 8%
2012 2014 2016 2018
Segment
6.8 8.3 10.0
43% 37% 36% 35%
23% 29% 29% 30%
33% 34% 34% 35%
2012 2014 2016 2018
NA EMEA Asia
34% 30% 36% 38%
25% 27% 30% 29%
41% 43% 33% 33%
2012 2014 2016 2018
Region
MMt MMt
8.3 7.5 $B $B
6.8 7.5 11.6 6.8 11.0 11.6 11.0 7.5
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1,044
1,116
950
429
$3,537M
PET Fibers & Yarns Aromatics Olefins
890
990
696
232
$2,811M
Increasing Value Addition Over Time
Capturing More Value Chain Margin
820
786
207
263
$2,064M
23% 27% 34% 35%
680
435
213
206
$1,538M
% of
IVL Revenue
2012
2014
2016F
2018F
Raw Material
Margin $M
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Strategically Building on Our Polyester Core Opportunity to Replicate Success in Other Value Chains
Note: US gas cracker project expected start-up in 4Q17
PET Packaging
Fibers
Polyamide 66 Stream
HVA Automotive
EOEG
Polypropylene Stream
Ethylene/Propylene
Ample Avenues for Value-Accretive Growth
Polypropylene Stream
HVA Personal Care
PTA
IPA
PX
NDC
Polyester Stream
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Disciplined Growth and Investment
Focus on Extracting Value from Recent M&A
1.0
1.3
0.2 0.4
0.9 0.9
0.3 0.1
2011 2012 2013 2014 2015E 2016 2017 2018
Integration M&A Integration M&A
Continued Transformation
Growth
Synergies
Operational
Excellence
48%
14%
38%
HVA Asia NecessityWest Necessity
39%
16%
45% 9%
Committed Growth Capex
EBITDA by Product Segment
$B
Growth
Synergies
Operational
Excellence
25%
66%
2012 2015 2018
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Strong Financial Framework
Balancing Value and Risk Management
Capital Structure Capex Spending
Net Operating Debt to Equity
LT Loan
Debenture
PERP
2015E
Total Equity
$2.3B
Net Debt
$2.2B
Share-
holders
Equity
1.0
1.4
0.2
0.4
0.8
2011 2012 2013 2014 9M15 2016 2017 2018
Maintenance
Growth
Lowering
Capex
$B
0.63
1.3 1.2
0.8 0.9
1.0
0.8
0.5
2011 2012 2013 2014 2015 2016 2017 2018
Net Op Debt/Equity
Reducing
Leverage
Times
Note: Core financials 2015
Net Operating Debt Per Ton
342
234
150
-50
0
50
100
150
200
250
300
350
2012 2015 2018
Net Operating Debt
Net OpDebt/Capacity
$/MT
$B
ST Loan
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Last 7-Year Average Historical Average 2013-2015 Avg 2016-2018 Avg
Asian
PTA 94 94
EU
PTA 190 190
NA
PTA 272 272
Asian
PET 130 130
NA
PET 271 271
EMEA
PET 205 205
0
100
200
300
400
2009 2011 2013 2015
0
100
200
300
400
0
100
200
300
0
100
200
300
0
100
200
300
400
0
100
200
Business Plan 2016-2018
Spreads Taken at Trough
159
226
289
135
265
254
Note: Industry Margins, IVL Analysis, Simple average used
$/MT
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IVL Business Plan 2016-2018
600
0
500
1,000
1,500
2012 2014 2016 2018
EBITDA
6% 9%
12%
18%
-20%
-10%
0%
10%
20%
0
2
4
6
2012 2014 2016 2018
Net Capital Employed ROCE $B
6.8 7.5
11.0 11.6
0
10
20
2012 2014 2016 2018
5 6
9 11 82%
85% 87% 92%
50%
60%
70%
80%
90%
100%
0
10
20
2012 2014 2016 2018
Operating rate
Capacity Production
Raw Material Margin EBITDA
MMt MMt
ROCE
Note: Core financials, IVL Analysis
Revenue
76% 66% 68%
68%
6.8 7.5
8.3
10.0
0
4
8
12
2012 2014 2016 2018
HVA Necessity $B
$M
69%
55%
55%
58%
1.5
2.1
2.8
3.5
0
1
2
3
4
2012 2014 2016 2018
HVA Necessity $B
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Aiming on Delivering Consistent, Superior Value
1.6X Value
Addition
Growth
since 2015
Enlarging from
Integration and
Feedstock Scale
Double-
Digit
EBITDA
Margin
Driven by HVA
Margins and
Volumes and
Integration
~$3B
Operating
Cash Flow
in 2016-18
>85% Revenue
from Consumer
Staples
>15%
ROCE
Enhanced by
Value Addition &
Capex Discipline
~4.0X Core
EPS growth
2015-18
Creating
Shareholder
Value
7 Consecutive Years of Core EPS Growth 2012-2018F
With Strong Cash Flow and Attractive ROCE
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We Are Closer Than You Think