Indorama Ventures Public Co. Ltd. · SET:IVL
Indorama Ventures Public — Q3 2024 Earnings Presentation
43 slides from Indorama Ventures Public's earnings presentation, Nov 11, 2024
Slide 1: 3rd Quarter 2024 Financial Results
3™ Quarter 2024 Financial Results 11% Nov 2024 Indispensable Chemistry GDp r )
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 | —————, (6p Stock Levels and Freight Rates a Manufacturing PMI SCFI US saw a slowdown in growth, while Stocks of Purchases PMI ScFl up 15% (sATEU) economic conditions in China and 60 > i up 15% in 800 - , 60.0 ° Destocking from y aoe last 3 weeks Europe
Slide 4: 3Q 2024: Business Results
3Q 2024: Business Results ao uu BF WN F Note: (1) Adjusted EBITDA and adjusted net profits are core EBITDA and core net profits further adjusted with lag impacts, hedging and other items to reflect underlying business performance Indispensable Chemistry Adjusted EBITDA reached $427M, up 15% QoQ and
Slide 5: Stable end products demand, partially offset with lower PTA volumes
Stable end products demand, partially offset with lower PTA volumes from assets rationalizations of 2Q24 Sales Volume (MT) Mera " CPET & Intermediate Chemicals excl. PTA 3Q24 sales volume stable YoY and lower 3% QoQ due to lower PTA 2.79 2.86 277 2.78 3.54 3.64 3.54 3.57 volumes post assets rational
Slide 6: Updates on IVL 2.0
Updates on IVL 2.0 Financial Outcomes by 2025 USS160-170M {0.a. Fixed cost reduction US$19M Fiked Gest aecluction US$140-150M {0.a. EBITDA increase +— Destocking ———> 83% 74% 74% L [ L | 9M22 4022 2023 1024 Note: (1) IVL operating rates excludes Oxiteno capacity and volumes because all capacity is n
Slide 7: Updates on IVL 2.0: IPOs and Divestments
Updates on IVL 2.0 IPOs and Divestments Project Amount Target Completion Current Progress $1B Reorganization Pre-Consultation with relevant authorities Reorganization Preparation with FA Appointment of advisors 4Q25 Preparation with FA Project Luster $300M Project Cobra
Slide 8: 3Q 2024 Results — IVL by Segments
3Q 2024 Results — IVL by Segments IVL Adjusted EBITDA ($M) 427 370 366 223 a 283 225 ae) 234 186 3023 4023 1024 2024 3024 Reported EBITDA ($M) 324 175 367 369 374 Note: Total Reported and Adjusted EBITDA includes holding EBITDA which includes corporate expenses Source: IVL Analysis Indispensable Che
Slide 9: 3Q 2024 Results — IVL by Regions
3Q 2024 Results — IVL by Regions IVL Adjusted EBITDA ($M) 427 366 370 102 323 56 42 277 57 ay 307 269 222 45 28 0 0 3023 4023 1024 2024 3024 Reported EBITDA ($M) 324 175 367 369 374 Note: Total Reported and Adjusted EBITDA includes holding EBITDA which includes corporate expenses Source: IVL Analysi
Slide 10: 3Q 2024 Results — Combined PET
3Q 2024 Results — Combined PET CPET Adjusted EBITDA ($M) 215 187 172 142 141 125 178 125 ao 119 21 27 6 24 22 40 19 11 -11 il 3Q23 4023 1024 2024 3Q24 Reported EBITDA ($M) 146 71 173 175 177 Source: IVL Analysis +51% YoY due to improved benchmark spreads, lower feedstock costs in PIA and cost optimi
Slide 11: Integrated PET: Leveraging Market Dynamics for Spread Improvement
Integrated PET: Leveraging Market Dynamics for Spread Improvement PET demand recovery globally Improving Asian spreads 3Q24 industry dynamics * Stable seasonal demand ¢ — Industry discipline supporting margin MMt 266 recovery * High container freight rates Near-term outlook * Reducing inflation lead
Slide 12: Recycling Case Study — building infrastructure to meet customer needs
Recycling Case Study — building infrastructure to meet customer needs 100+ KT recycling capacity in India Building sustainable future through synergies Jammu & Recycling 32a fj Per Rei INDORAMA (By 2025) VENTURES karnal® # 1 PepsiCo's 220 KTA PET & rPET second-largest producer bottling company Q Hal
Slide 13: Indovida — broadening Packaging geographic footprint, focusing on Africa
Indovida — broadening Packaging geographic footprint, focusing on Africa IVL PET Footprint in Africa Tanzania greeni Tanzania = East Africa location, Population ~68.5 million q . . . aye > 7 PNA Rapid growth in Tanzania, with opportunities = 6% GDP Growth in 2025F to expand the client base = PET per
Slide 14: 3Q 2024 Results — Intermediate Chemicals
3Q 2024 Results — Intermediate Chemicals Intermediate Chemicals Adjusted EBITDA ($M) 82 71 62 62 a a L 3Q23 4023 1024 2024 3Q24 Reported EBITDA ($M) 80 42 70 60 70 Note: Intermediate Chemicals include ethylene at Lake Charles, PEO and EG at Clear Lake, and EG and MTBE at Port Neches Source: IVL Anal
Slide 15: Intermediate Chemicals — stable US integrated MEG spreads
Intermediate Chemicals — stable US integrated MEG spreads tegrated MEG margins s/t 600 510 500 464 473 400 300 200 100 2021 2022 2023 1Q24 2Q24 Jul-24 Aug-24 Sep-24 Hl Asia integrated MEG margins‘! MJ Us shale Gas advantage”) Note: (1) Asia Integrated MEG margins = Asia MEG over Asia Naphtha (2) US
Slide 16: Intermediate Chemicals — decline in MTBE spreads from all-time highs
Intermediate Chemicals — decline in MTBE spreads from all-time highs IS MTBE spreads Sit 700 51 623 629 600 541 500 469 400 399 393 300 206 200 100 ) : - 7 r : ' : 2021 2022 2023 1024 2024 Jul-24 Aug-24 Sep-24 Note: US MTBE spreads = US MTBE — US N-Butane -0.35*US Spot Methanol Source: CMA, IVL anal
Slide 17: Sustainability Innovation — Bio-Paraxylene PET bottles for Suntory
Sustainability Innovation — Collaboration to launch world’s first commercialized PET bottles using Bio-Paraxylene for Suntory New Innovative PET Bottle from Bio-Paraxylene SS cies. MT a, a * Sustainable milestone PET bottles derived from used 6 NESTE SENEOS INDORAMA cooking oil —— | | oO ¢ nae on Bi
Slide 18: 3Q 2024 Results — Indovinya
3Q 2024 Results — Indovinya Indovinya Adjusted EBITDA ($M) YoY, EBITDA growth across all segments, driven by 10% higher volumes, improved pricing, and sales mix. QoQ EBITDA improvement is primarily due to the a Crop Solutions performance, benefiting from seasonal upsides in the crop cycles across th
Slide 19: 3Q 2024 Results — Indovinya by End-Markets
3Q 2024 Results — Indovinya by End-Markets Revenue ($M) Volume (KT) ley) 2024 3Q24 Adj EBITDA $M 53 98 103 HVA 66 98 99 634 640 Essentials -12 0 4 573 372 Adj EBITDA Margin % 9% 16% 16% 363 pa x0 330 HVA 14% 20% 20% 32% Essentials -11% 0% 3% 38% 30% 36% 14% 15% aEK Home & Personal Care: demand remai
Slide 20: Intensifying Customer-Backed Innovation for a Sustainable Downstream Portfolio
We are Intensifying Customer-Backed Innovation to Solidify a Sustainable and Value-Generating Downstream Portfolio World-class R&D infrastructures & Green Chemistry 7 R&D & Tech Centers across the world + Implementation of a R&D Digital Committee * R&D Digital Transformation Journey * ELN connectivi
Slide 21: 3Q 2024 Results — Fibers
3Q 2024 Results — Fibers Fibers Adjusted EBITDA ($M) 44% YoY growth in Adjusted EBITDA due to 48 recovery in margins and management actions on fixed cost productivity. 39 39 15 22% QoQ growth in Adjusted EBITDA due to 33 Ls | improvement in Lifestyle margins and lower wes fixed costs. Wi: Wie insura
Slide 22: Lifestyle PSF — Industry spreads at year high
Lifestyle PSF — Industry spreads at 2 year high Improvement in PS! China PSF FOB spread ($/t) 250 5 3024: $156/t oe ape . Maximizing utilization rate 200 4 187 221 i ' 183 150 | 144 441 440 as Increasing domestic share in 96 1 1 * . 100 33 ' ' Indonesia & India 50 ' ' Footprint rationalization in 04
Slide 23: Relocating assets from Germany to Italy
We are relocating assets from Germany to Italy, saving $13M and reducing headcount by 210 in 2025 an)" ilizations Polycondensation Yarn Dyeing Beaming Trevira, Germany 84% Sinterama, Italy N/A 54% N/A Starting Point Execution * Highly complex product and customer portfolio * Reduction of 210 H/C ann
Slide 24: Centrally Managed Functional Organization to reduce White Collar workforce
Centrally Managed Functional Organization expected to reduce net White Collar workforce by ~250, resulting in an annual savings of ~$22M in 2025 Design Principles Replace entity-based structure by standardized functional structure across regions Reduce number of organizational layers: From 10 to 7 a
Slide 25: Net debt bridge: 9M24
Net debt bridge: 9M24 SM o12 — Operating Maintenance Net financing Perpinterestand FCF created for cash flow capex cost NCI dividends IVL Shareholders (83) (134) (150) a ———— ee Lr 380 461 (6,841) (6,461) (6,678) Net debt FCF created for Net debt Dividends Growth Net debt Sep24 — Deferred payment Pe
Slide 26: Enhanced Liquidity with Refinancing and Liquid assets
Enhanced Liquidity with Refinancing and Liquid assets $1.3B refinancing completed in 2024 After refinancing (Sep 2024) Refinancing completed SB . wy in9M24 Sy 2024 0.1 0.3 5% 1. THB 10 billion Senior Unsecured Debentures $285 2. Ninja Loan Refinancing 5-year bullet maturity $255 2025 | os 0.7 10% 3.
Slide 27: 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* SB 7a 74 th oe Others 4% Cash & cash under Working Capital 30" Sep 2024 Liquidity! $2.5B management 0-7 Ea Loan $B 238% ROW Non operating| ’ debt? 2024 0.29% 0.1 0.3 5% 20
Slide 28: Cash conservation and disciplined capital allocation
Cash conservation and disciplined capital allocation Working Capital Days ~—_ 5 Days ~_,_ i | 4Q23 3024 Better discipline on Working Capital Note: (1) 2024 capex excludes $150M Oxiteno deferred payment ID GD © GED © 0.75 0.32 2023A 0.66 0.66~\, ™~ 0.59 ” 0.57\ 058 0.49 0.33 0.42 0.31 | 0.20 0.49 9.4
Slide 29: Outlook: Growth in end-product demand in all segments
Outlook 1 Growth in end-product demand in all segments CPET to face seasonal weakness in 4Q, however benefit from cost savings and better benchmark spreads Intermediate Chemicals to be softer with lower MTBE spreads due to higher feedstock costs Indovinya to be impacted in 4Q24 due to lower crop sea
Slide 30: Evolution to IVL 2.0
Evolution to IVL 2.0 Creating value in a changing landscape IVL 1.0 IVL 2.0 * Free Cash Flow * 1st Quartile Cost * Scale ¢ Value Chain Integration Driven Growth Structure Strategy * Global Reach © Client Relationship * Innovation & * Value Creation Sustainable Solutions oO ti aa , a . model ing ¢ Di
Slide 31: Thank you
Thank you GD © GED © Oindoramaventures202¢ @Y @
Slide 32: Differentiation of IVL
Differentiation of IVL Manufacturing in 32 countries Proximity to customers & shorter supply chain ensures stability of supplies for Coke, Pepsi, Nestle etc. Shale gas integration in US Lowest feedstock cost integration in the US with full value chain from Ethane to PET and Surfactants. Provides adv
Slide 33: Full PET demand potential yet to unfold in many emerging markets
Full PET demand potential yet to unfold in many emerging markets PET per capita, kg, and GDP per capita, $k £ 16) . k eee & 15 | Emerging Markets cee 4 Population: ~5.Sbn cee? ; ; 2 14 4 GDP per capita: $~5.7k cee (es) << India China w 13 4 PET per capita: ~3.3kg wee +9% +7.8% 12 4 ~~ Nigeria Egypt
Slide 34: PET capacity cycle in China reaching its peak in 2024
PET capacity cycle in China reaching its peak in 2024 China PET capacity additions (MMT) 5.0 4 * PET expansion in China cools 4.0 4 down as capacity cycle reaches its peak 3.0 | * With the introduction of new capacities, the gradual phasing out of small, old 2.0 4 production lines has begun * These
Slide 35: China — Market expected to adopt a more disciplined approach
China — Market expected to adopt a more disciplined approach China PET market is concentrated Profit distribution in the polyester value chain China PET Capacity! (2024 = ~20 MMt) China spreads? ($/t) 450 78% 373 \s7 Top 4 producers v7 o 4 i o o o o Of Z 89 101 Most players are not PX integrated 61
Slide 36: Global PET manufacturing footprint mitigates competition from Chinese imports
IVL’s global PET manufacturing footprint mitigates competition from Chinese imports IVL PET sales split (%) Trade barriers Duties + ADD on China PET imports across main IVL markets 45% 29% impacted by Chinese impacted by Chinese imports 9% imports j= US (Duty 6.5%+ ADD Mexico (Duty 35% since southea
Slide 37: Elevated ocean freights continue to support high domestic prices
Elevated ocean freights continue to support high domestic prices SCFI ocean container spot freight rates ($/TEU) 10,000 5 9,000 4 8,000 + 7,000 4 6,000 | 5,000 | 4,000 3,000 + 2,000 + 1,000 + 10) 2019 2020 2021 2022 2023 1Q24 2Q24 3Q24 Source: SCFl, Maersk, IVL Analysis Asia-South America * Asia- US
Slide 38: US producers to retain shale gas advantage
US producers to retain shale gas advantage; rationalization expected as Asian producers face unsustainable margins US producers to maintain shale gas advantage 2023 Global MEG Cost Curve (Brent = $83/bbl) 700 4 Naphtha “45% 650 4 600 4 5507 ASP MEG = ~$500/t 500 — — — — — — — — — — — — — — — ooo oe
Slide 39: Compressed Refinery margins, back to 2019 levels
Compressed Refinery margins, back to 2019 levels GRM Singapore ($/bbl) 10.7 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 1Q24A 2Q24A 3Q24A Indispensable Chemistry rt] r ) re] e © Indorama Ventures 2024 (39)
Slide 40: Indovinya chemistry touches our lives every day
Indovinya chemistry touches our lives every day Toothpastes a -— ) Detergents a Shampoos Ta LE Nutrition and health Paints a] a Auto oil lubricants _ ink A . “ a ‘ = =| . ' HA Su"tece cleaners Biocides io (sanitizers) Indispensable Chemistry GDp r ) GD e © Indorama Ventures 2024 e @
Slide 41: Expected impact from US election — Overall quite positive for IVL
Expected impact from US election — Overall quite positive for IVL Expectations Shale gas production Trump said: “Leave the oil to me” Import duties in the USA Trump made tariffs as key elements of his pitch to voters Corporate tax Trump made tax cuts as key elements of his pitch to voters USD expect
Slide 42: Reconciliation of Reported to Adjusted EBITDA
Reconciliation of Reported to Adjusted EBITDA = Adjusted EBITDA $million 3Q24 2024 3Q23 Remarks Reported EBITDA 374 369 324 2Q24: Brazil (Oxiteno, IVBRZ 8.9) and Egypt . . 1 8 12 |(-1.1) Extraordinary currency impact 3Q23: Nigeria (IPETUSD 11.1,BEVPAKUSD) Acquisition cost and pre-operative expense 1
Slide 43: Reconciliation of Reported to Adjusted Net Profit
Reconciliation of Reported to Adjusted Net Profit Smillion 3024 2024 3023 Remarks Reported Net Profit 34 (637) 5 3Q24: FX translation impact . as tion . 6 666 - |2Q24: PET/PTA Netherlands, PTA Canada,PTA Rationalization of footprint (impairments) Portugal, Ethylene Oxide and derivatives Australia .
Indorama Ventures Public Company — Q3 2024 Earnings Presentation on 6ix