Indorama Ventures Public Co. Ltd. · SET:IVL
Indorama Ventures Public — Q1 2024 Earnings Presentation
25 slides from Indorama Ventures Public's earnings presentation, May 10, 2024
Slide 1: 1st Quarter 2024 Financial Results
1st Quarter 2024 Financial Results Reimagining Chemistry Together to Create a Better World 10th May 2024 1
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” of Indorama Ventures Public Company Limited (the “Company”) that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical fact contained
Slide 3: Macroeconomic landscape
Macroeconomic landscape Economic Activity Stock Levels and Freight Rates SCFI1 Economic activities in US and Manufacturing PMI Stocks of Purchases PMI ($/TEU) China returning to growth, while 60 55 Destocking 800 Expansion Europe remain challenging from 4Q22 55 600 US 50 50 PMI 400 Destocking is dec
Slide 4: 1Q 2024: Business Results
1Q 2024: Business Results 1Q 2024 Key Financials 1 Ease of destocking supported volumes, partially negated by winter freeze in the US (circa. 60KT) Sale Volume 3.55MT Revenue $3,812M 3% QoQ 2% YoY 6% QoQ -5% YoY Continued low Asia integrated PET benchmark 2 spreads and high PX/MX feedstock in the We
Slide 5: Update on IVL 2.0 Management Actions
Update on IVL 2.0 Management Actions ▪ Seven identified assets include Corpus Christi, PTA Portugal, PET/PTA Rotterdam and four Optimizing Our other sites Assets ▪ Mothballed PTA site in Portugal in 3Q23 & partially impaired Corpus Christi in 4Q23 to reflect the fair market value ▪ Ongoing consultat
Slide 6: Ease of destocking positively impacting our volumes
Ease of destocking positively impacting our volumes Sales Volume (MT) CPET 5.00 Intermediates Chemicals 2.00 2.00 5.00 • 1Q24 sales volume grew 3% 4.00 3.46 3.45 3.55 3.83 growth QoQ, and 2% YoY 2.73 2.77 3.00 4.00 3.00 2.70 1.50 1.50 0.29 0.35 0.31 0.40 3.00 2.00 1.00 1.00 0.41 0.44 0.46 2.00 • Sig
Slide 7: 1Q 2024 Results – IVL by Segments
1Q 2024 Results – IVL by Segments IVL Adjusted EBITDA ($M) • Growth in Adjusted EBITDA driven by sales volumes growth 415 in CPET and Fibers 372 +32% 33 366 QoQ 38 • Western business benefited from 1Q24 vs 53 323 39 4Q23 supply chain disruptions and 33 277 lower energy costs 96 70 22 53 • Indovinya
Slide 8: 1Q 2024 Results – IVL by Regions
1Q 2024 Results – IVL by Regions IVL Adjusted EBITDA ($M) • EMEA improved significantly due 415 to supply chain disruptions, ADD 372 on PET imports from China and 31 366 +32% 6 lower gas prices QoQ 323 45 3Q23 vs 2Q23 88 82 0 • Americas benefitted from higher 277 42 0 56 MEG and MTBE benchmark 57 sp
Slide 9: 1Q 2024 Results – Combined PET
CPET 1Q 2024 Results – Combined PET CPET Adjusted EBITDA ($M) • Int. PET improved QoQ with higher volumes, higher EMEA and 247 SAM margins though lower 35 margins in NAM with contract +32% QoQ 198 resets 4 187 1Q24 vs 4Q23 21 21 • Specialty Chemicals performed 15 142 better with higher volumes and 1
Slide 10: IVL Premium: PET performance leverage on the strength of our platform
CPET IVL Premium: Despite current headwinds, IVL’s PET performance leverage on the strength of our platform Despite compressed industry margins, 2024 Performance drivers IVL premium remain strong Major drivers to maintain IVL ▪ Volumes growth Delta dueIndustry above to easeaverage of Integrated PET
Slide 11: 1Q 2024 Results – Intermediates Chemicals
CPET 1Q 2024 Results – Intermediates Chemicals Intermediates Chemicals Adjusted EBITDA ($M) • Intermediates Chemicals comprises of integrated Purified EO, integrated EG and MTBE businesses. 82 • Intermediates Chemicals improved +38% from higher MEG and MTBE QoQ 1Q24 vs 42 margins despite winter free
Slide 12: 1Q 2024 Results – Indovinya
Indovinya 1Q 2024 Results – Indovinya Indovinya Adjusted EBITDA ($M) • Winter freeze and mini turnaround impacted EBITDA by US$5M in 1Q24 • Home & Personal Care: sales 0% volume grew 6% QoQ as QoQ 1Q24 vs customers increased purchases 4Q23 • Crop Solutions: Lower volumes QoQ, as farmers delaying 96
Slide 13: 1Q 2024 Results – Indovinya by Markets
Indovinya 1Q 2024 Results – Indovinya by Markets Revenue ($M) Volume (KT) 644 586 567 358 349 341 26% Indovinya 1Q23 4Q23 1Q24 26% 28% 30% Adj EBITDA $M 96 70 70 36% 32% HVA 92 80 71 22% 22% Essentials 4 (10) (1) 22% 18% Adj EBITDA Margin % 15% 12% 12% 18% 19% 18% HVA 18% 18% 15% 16% 14% 17% 13% Ess
Slide 14: 1Q 2024 Results – Fibers
Fibers 1Q 2024 Results – Fibers Fibers Adjusted EBITDA ($M) • Lifestyle turned positive as demand recovery in most markets from ease of destocking. India catching up. 39 • Mobility improved with strong 38 demand after normalizing one-time 33 33 6 8 insurance claim of US$15.8M in +73% 2 QoQ 2 2 6 4Q2
Slide 15: Natural hedge on foreign currencies with global investments
Natural hedge on foreign currencies with global investments Natural Hedge Diversified Funding Long-Term Debt Repayment schedule (2) $B 7.4 7.4 31st Mar 2024 Others Cash & cash under Working Liquidity $2.5B 4% management 0.6 $B 0.9 Capital Loan 24% ROW Non operating debt(1) 1.0 2024 0.3 0.1 0.4 6% Fi
Slide 16: Key takeaways
Key takeaways 1 Volumes growth with the ease of destocking Industry polyester benchmark spreads in Asia continue to be low mitigated by IVL premium 2 positions in multiple geographies supported by trade and non-trade barriers 3 West (especially Europe) continues to benefit from supply chain disrupti
Slide 17: Reimagining Chemistry Together to Create A Better World
“Reimagining Chemistry Together to Create A Better World” 17
Slide 18: IVL global manufacturing footprint mitigates competition from Chinese imports
CPET IVL global manufacturing footprint mitigates competition from Chinese imports IVL PET Sales split (%) Trade and non-trade barriers 44% 20% Duties + Anti Dumping Duties on China imports impacted by Chinese impacted by Chinese imports imports 9% US (Duty 6.5%+ ADD Mexico (Duty 35% since Southeast
Slide 19: Significant overcapacity in China continues to pressure operating rate and PET spreads
CPET Significant overcapacity in China continue to put pressure on operating rate and PET industry spreads, and increase exports China PET op. rate remain depressed PET industry spreads remain under Growing export volume from China amidst ongoing capacity addition pressure driven by significant over
Slide 20: Shale gas advantage remained strong as ethane price continues to decline
CPET Shale gas advantage remained strong as ethane price continue to decline, expect ethylene margins to gradually improve with operating rates Shale gas adv. remained strong as Ethylene spreads increased in 1Q24 Expect spreads to improve as ethane price continued to decline due to turnaround and wi
Slide 21: Expect rationalization as Asian MEG producers operate at unsustainable margins
CPET Expect rationalization as Asian MEG producers has been operating at unsustainable margins, US producers to maintain shale gas advantage Global MEG capacity addition Asia MEG spreads remains low as NEA producers operate below cash continues to outpaced demand growth market stays oversupplied cos
Slide 22: US MTBE benchmark spreads remained above historical level
CPET US MTBE benchmark spreads remained above historical level amid tight gasoline market in the West, although falling slightly from 2023 peak Continued strength in MTBE prices US butane and methanol prices US MTBE price elevated above from tight gasoline market remained low historical level US MTB
Slide 23: Moving Intermediates Chemicals to CPET for greater synergies
CPET Moving Intermediates Chemicals to CPET for greater synergies Intermediates Chemicals: Cost Advantage from Shale Gas1 Creating a unique, fully integrated model from 3 13% Upstream integration shale to PET in the Americas Industrial Units EBITDA Margin2 for CPET US Butane US MEG producers maintai
Slide 24: Energy Price impact and Hedging
Energy Price impact and Hedging Energy & Utilities impact Energy Prices 6.63 Net Impact 123 YoY • Gas hedging 62% in Europe and (US$M) 68% in the USA • Gas hedging 42% HH NG price in Europe and ($/mmbtu) 67% in the USA 2.99 2.64 US$M 2022 2023 2024F 2.09 2.38 1.77 Energy cost YoY (637) 355 191 40 30
Slide 25: Key items below EBITDA & Capex
Key items below EBITDA & Capex Key items 2023A 2024e Remarks for 2024e Depreciation and Amortization ($M) 796 780 Lower with management actions Net Finance Cost ($M) 407 440-450 Total Capex ($M) 752 ~650-700 1Q24 = 108 Growth Capex ($M) 432 ~150-200 Mainly Recycling and Hygiene products Oxiteno defe
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