Indian Polyester 2016

Vipin Kumar

PET GLOBAL OVERVIEW

www.indoramaventures.com

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

3 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

PET is now in its 75th Year

and Still Revolutionizing The Drinks World

Superior benefits to brandowners

• Encourages novel package design and enhances

brand differentiation, Shelf impact

• Reduces transportation and distribution cost

Superior benefits to consumers

• PET is a shatterproof, safe package option for both

home and away-from-home applications

• PET is easy to store, carry, clean up and re-seal

Sustainable packaging choice

• Competitive product against other packaging

materials

• Product & pack size innovation help PET

outperform competing packaging

• PET is the most widely recycled plastic globally

• PET has lower carbon footprint vs. competing

materials

PET is a transparent, lightweight, strong, safe, and recyclable packaging material, making it suitable for a wide array of products

0

100

200

300

400

500

2000 2003 2006 2009 2012 2015

Aluminium PET Glass

Paper Others

15-yr CAGR

+7.0%Surpassing glass as

the largest packaging

substrate

Global Beverage Containers Demand (Bn units)Compelling product attributes driving PET’s success

Source: IVL Analysis, Euromonitor

4 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

PET: Most Affordable Packaging Material

0

500

1,000

1,500

2,000

2,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PET Aluminum

Most cost effective alternative

PET vs Aluminum Price Comparison (2001-2010)

Equivalent Prices (US$ / T)

1. Asia PET Prices 2. London Metals Exchange Aluminum Price x 0.71Note: Prices are per equalized unit for the product consumedSource: SBA CCI, London Metals Exchange, IVL Analysis

1 2

28%10-year Average

Aluminum / PET price premium

5 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

PET: Sustainable Packaging ChoiceNumerous life-cycle studies give environmental edge to PET over competing materials

11

16

27

0

5

10

15

20

25

30

(Million BTU)

302

767

4,457

0

1,000

2,000

3,000

4,000

5,000

PET Aluminum Glass

1,125

2,766

4,848

0

1,000

2,000

3,000

4,000

5,000

PET Aluminum Glass

Weight (lbs) CO2 equivalents (lbs)

Note: Product pictures for illustrative purpose onlySource: Franklin Associates, IVL Analysis

Lowest energy

consumption

Lowest waste

generation

Lowest CO2

emissions

PET packaging is more energy efficient and has lower

carbon footprint vs. aluminum and glass

6 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Growing PET Application

28.8% 28% 10.9%

15.5% 10.1%

6.6%

CSD

10.6 bn. Additional Consumption

Water

71.2 bn. Additional Consumption

PET Packaging Consumption

Total unit volume

CAGR% 2013-2018

Source: Euromonitor (2014), Husky, IVL Analysis

Global Consumption of PET

package growth at steady

pace.

JSDT

37.4 bn. Additional

Consumption

Global Packaging Demand in

Carbonates

21%

43%

36%

Glass PET Bottle Others

20%

18.3%

21%

19.2%

12.9% 8.5%

PET Demand Share by Region

Source : PET Planet (No.6, 2016)

Source : pci WoodMackenzie

Source: Euromonitor (2014)

7 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

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 TrendsCompelling Product Attributes Driving PET Success

Health Awareness• Quality of tap water is suspect 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 Analysis

8 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Food & Beverages

Differentiated 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

Antimony Free Catalyst: Al, Ge, Ti

Bio & Recycle

Medical

Industrial &

Electronics

Personal & Home

Care

Note: Examples only and not exhaustive

Shampoo containers

Body care

Cosmetics

9 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

2016

PET Demand

in India

1.6K

2015 GDP Per Capita ($) Current PET Per Capita

Consumption

0.8

Kg

Current Soft Drink

Per capita consumption

13

litres

Modern Trade stores per

million consumers

6

Source: World Bank 2015 GDP per capita, Industry Data, IVL Analysis, Euromonitor, Nielsen

8K

2015 GDP Per Capita ($) Current PET Per Capita

Consumption

3.4

Kg

Current Soft Drink

Per capita consumption

62

litres

Modern Trade stores per

million consumers

162

India = “NEXT China” A very promising market for long-term growth

CAGR 2016-2026 = 17%

CAGR 2016-2026 = 17%

2016

PET Demand

in China965 1,129 1,320 1,544 1,805 2,111

2,469 2,888

3,377 3,950

4,619

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

10 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

India – A Country with Huge Growth PotentialStructural Changes Underpin Strong Long-Term Demand Growth

2013 Beverage Packaging Mix (Per Cent)

Application

Share

Significant Penetration Upside

Still Drinks

Source : Industry Data, IVL Analysis

17% 38% 15% 23% 7%

PET Share of Beverage Market 30% Only

“Lifestyle Parity”

India Beverage Industry

CAGR

In Litres mn 2013 2018 2013-2018

Soft drinks 11,755 22,937 14%

Bottled water 8,197 16,957 16%

CSD 2,352 3,465 8%

Juice (Fruit/vegetable) 1,132 2,413 16%

Source : The Economic Times (2016)

Source : PET Planet (No.5, 2016)

11 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

India – A High-Priority Market Coke and Pepsi to Invest > $10 billion by 2020

“PepsiCo will invest $5.2 billion with its

partners in India by 2020 as it increases

manufacturing capacity and adds new

products…India is a country with huge

potential and it remains an attractive, high-

priority market for PepsiCo”

Indra Nooyi, CEO PepsiCo, Nov 2013

“Coca Cola and its bottling partners will

invest $5 billion in India by 2020 as it

looks to raise its presence in one of the

fastest growing markets in the

world…India, a country of 1.2 billion,

remains one of the last big frontiers for

Coca Cola”

Muhtar Kent, CEO Coca-Cola, July 2012

Ambitious Targets Confirm Long Term Potential

Note: IVL Research, The Economic Times (2016)

“We have already created some 45,000

jobs and continue to see huge potential in

the Indian economy”

Jeff Bezos, CEO Amazon, June 2016

"India continues to be among P&G's fastest

growing developing markets globally, and is

a key priority for the company”

A.G. Lafley, CEO P&G, June 2013

Referring to the launch of Coke 250 ml

PET bottle in India,

"The pack radically extends the shelf life of

small PET... So, this is a way of really

being able to extend the reach way further

into the rural areas“

James Quincey, COO Coca-Cola,

June 2016

12 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Source : IVL Analysis, IHS Global Trade Atlas (2016)

India PET Operating Rates Returning to Normal

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

500

1000

1500

2000

2500

2012 2013 2014 2015 2016 2017 2018 2019 2020

Capacity Production Demand Operating Rate

13 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Supply Chain Supports the Socio-Economic Needs

Improving

Processes and

Technology to

reduce Energy

consumption

Recycling-The

way to go

Zero emissions

and waste

Conservation of

resources through

light-weighting

Renewable

Materials

BIO-MEG/ BIO-PX

SUSTAINABILITY

Renewable

Energy

Stakeholder

Engagement

14 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Recyclability Creates Competitive Attractiveness

Countries Have Proven It Can Be Done

Source: PCI, NAPCOR, IVL Analysis

31%

PET Bottle Collection Rates in Selected Geographies - 2014

US

58%

EU

85%

China

79%

Japan

75%

Mexico

31%

15 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

PCR Approval

Industry

Collaboration

Create

Infrastructure

Volatility

Focused Business

Commitment

“LOOKING AHEAD”

Carbon Footprint

Modern Trade

Awareness

Sustainability

16 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Key Essential Elements for Business

EBITDA MarginTop 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 d

eb

t

Cash FlowNet debt/Equity

Net debt/EBITDA

Div

iden

d p

ayo

ut

Cyclical products

Advantaged Raw Materials

Sustainability

17 ©Indorama Ventures PCL Our vision: To be a world-class chemical company making great products for society.

Indorama’s Differentiation

EBITDA MarginTop 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 d

eb

t

Cash FlowNet debt/Equity

Net debt/EBITDA

Div

iden

d p

ayo

ut

Cyclical products

Advantaged Raw Materials

Sustainability

Innovation

TechnologyR&D

Integration

Global

Scale

People

HVA