Indorama Ventures Public Co. Ltd. · SET:IVL
Indorama Ventures Public — FY2024 Earnings Presentation
25 slides from Indorama Ventures Public's earnings presentation, Feb 27, 2025
Slide 1: 4th Quarter and Full Year 2024 Financial Results
4th Quarter and Full Year 2024 Financial Results 27th Feb 2025 © Indorama Ventures 2024 1 RESTRICTED
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 US and China saw Manufacturing PMI ($/TEU) Stocks of Purchases PMI 60 800 improvement with rising 60.0 Expansion Destocking from 4Q22 production and new 600 55.0 orders, while Europe China SCFI 50.0 50 400 remain challeng
Slide 4: 2024: Business Results
2024: Business Results Reported EBITDA rose 26% YoY to $1.41B while Adjusted 2024 Key Financials 1 EBITDA increased 10% to $1.52B due to management actions despite industry headwinds Sales Volume Revenue 14.1MT $15,358M 2 Like-to-like volumes grew 4% YoY, supported by stable demand for end products
Slide 5: Updates on IVL 2.0
Updates on IVL 2.0 Asset rationalizations in 2024 Financial Outcomes by 2025/2026 Update in 2024 US$160-170M p.a. Fixed cost reduction US$48M Fixed cost reduction US$130-140M p.a. EBITDA increase 495 Manpower reduction US$150-200M One-time cash inflow Better operating rates1 (%) from sale of land De
Slide 6: 2024 & 4Q 2024 Results – IVL by Segments
2024 & 4Q 2024 Results – IVL by Segments 2024 vs 2023 CPET performance improved, stronger IVL Adjusted EBITDA ($M) Specialty Chemicals and cost savings from rationalizations, offset the impact of lower China benchmark spreads. 1,522 Indovinya delivered a strong 1,387 159 performance, with 4% volume
Slide 7: 2024 & 4Q 2024 Results – IVL by Regions
2024 & 4Q 2024 Results – IVL by Regions IVL Adjusted EBITDA ($M) 2024 vs 2023 1,522 Asia: Stronger performance driven by 1,387 better lifestyle fibers due to improved 331 PSF spreads and better CPET volumes 10% 268 and premiums despite lower YoY 427 benchmark spreads 2024 vs 102 358 Americas: Indovi
Slide 8: 2024 & 4Q 2024 Results – Combined PET
CPET 2024 & 4Q 2024 Results – Combined PET CPET Adjusted EBITDA ($M) 2024 vs 2023 Adjusted EBITDA grew 5% YoY, driven by Specialty Chemicals performance and cost savings from rationalizations, 768 729 offsetting weaker China benchmark spreads. 5% 215 Integrated PET: -4% YoY, impacted by YoY 195 mark
Slide 9: Specialty Chemicals Case Study – Strong Turnaround, Building Momentum
Specialty Chemicals Case Study – Strong Turnaround, Building Momentum CPET for the Future Successful turnaround of the business Key Turnaround Actions Specialty Chemicals Adjusted EBITDA ($M) •Operational Excellence: Enhanced plant reliability and yields and fixed cost reduction •Organizational Capa
Slide 10: 2024 & 4Q 2024 Results – Intermediate Chemicals
CPET 2024 & 4Q 2024 Results – Intermediate Chemicals Intermediate Chemicals Adjusted EBITDA ($M) 235 244 2024 vs 2023 4% 71 Adjusted EBITDA: $244M (4% YoY), YoY reflecting stable performance. 2023 vs Integrated MEG & PEO: Benefited from 2024 49 45 improved integrated MEG margins and a stronger shale
Slide 11: 2024 & 4Q 2024 Results – Indovinya
Indovinya 2024 & 4Q 2024 Results – Indovinya Indovinya Adjusted EBITDA ($M) 2024 vs 2023 Indovinya delivered a strong financial performance in 2024, with Adjusted EBITDA rising to $352M, a robust 29% 29% YoY increase. This growth was primarily YoY driven by: 2024 vs • Market Recovery Post-Destocking
Slide 12: 4Q 2024 Results – Indovinya by End-Markets
Indovinya 4Q 2024 Results – Indovinya by End-Markets Revenue ($M) Volume (KT) 2024 vs 2023 2,488 1,359 1,413 Home & Personal Care: demand remains 2,370 640 628 363 351 567 339 resilient; however, the launch of new products 34% 34% 35% 37% 38% combined and improved product mix has 32% 39% 39% 35% 41%
Slide 13: 2024 & 4Q 2024 Results – Fibers
Fibers 2024 & 4Q 2024 Results – Fibers Fibers Adjusted EBITDA ($M) 48 2024 vs 2023 Strong performance across all three verticals, 159 driven by higher volumes and improved 15 industry spreads. 26% 127 40 33 Mobility delivered strong performance, due YoY to higher replacement tire demand and 13 2024
Slide 14: EBITDA Bridge: 2024
EBITDA Bridge: 2024 $M 86 9 19 (99) (144) Int. PET Int. MEG MTBE PIA Int. PSF Management Actions 35 & Inflations Asset Rationalizations 48 122 (131) 60 1,522 1,387 Adjusted EBITDA Volumes Industry Benchmark Contribution Margins Fixed Cost Adjusted EBITDA 2023 Spreads Impact Reduction 2024 Source: IV
Slide 15: Net debt bridge: 2024
Net debt bridge: 2024 $M (110) (229) (276) 1,335 996 (432) (31) 257 Cash Severance, NWC outflow Operating Maintenance Net financing Perp interest and NCI FCF created for generated Rationalizations & cash flow capex cost dividends IVL Shareholders from operations others (193) (150) (111) 257 (6,841)
Slide 16: 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 $B 7.7 7.7 (Post- Refinancing)4 Others 3% Cash & cash under 0.5 31st Dec 2024 Working Capital Liquidity1 $2.1B management 1.2 Loan $B 27% ROW Non operating 0.8 debt3 2025 0
Slide 17: Working capital outflow while maintaining disciplined Capex allocation
Working capital outflow while maintaining disciplined Capex allocation Working Capital Days CAPEX ($B) 6 Days 0.75 88 0.66 82 0.47 0.32 0.42 0.28 0.43 Maintenance 0.24 0.19 Growth 2023A CMD 2024A 1H24 2H24 Mar24 $229M higher WC outflow in 2024 ~$190M lower CAPEX in 2024 due to temporary supply chain
Slide 18: 24.9% investment in EPL Limited, a listed packaging company in India
24.9% investment in EPL Limited, a listed packaging company in India ~8+ B $498 M $97 M Tube Volume'24 Revenue'24 EBITDA'24 Transaction summary Leading global player in consumer laminated tubes • INBV to acquire a minority stake of ~24.9% of EPL limited from Blackstone Presence in three key product
Slide 19: Reflection
2024 Reflection 1 Chemical industries remain challenging 2 Management actions partially mitigated the industry headwinds in 2024 Click to edit Master 3 Volume title style recovery across all segments as de-stocking pressures ease Click to edit MasterWorking capital outflow from temporary supply chai
Slide 20: Thank you
Thank you © Indorama Ventures 2024 20 RESTRICTED
Slide 21: Differentiation of IVL
Differentiation of IVL Manufacturing in 31 countries Leading producer of Recycled PET #1 globally Proximity to customers & shorter supply chain ensures Meet customer needs for circular materials stability of supplies for Coke, Pepsi, Nestle etc. Investing in the startups and new technologies- Shale
Slide 22: Integrated PET: Level Spreads and Changing Freight Dynamics
CPET Integrated PET: Level Spreads and Changing Freight Dynamics 4Q24 industry dynamics Flat Asian Int.PET spreads, but freight rates decline Management •Delayed vPET capacity actions additions and higher exports led to higher utilization in China •Container freight rates moving down 100 % 95 % 97 %
Slide 23: Emerging Markets: A Powerful Frontier for Future PET Demand
CPET Emerging Markets: A Powerful Frontier for Future PET Demand PET per capita, kg, and GDP per capita, $k Emerging market growth CAGR (2024-2027) PET per Capita 16 Emerging Markets 15 Population: ~5.5bn 14 GDP per capita: $~5.7k India China US 13 PET per capita: ~3.3kg +9.0% +5.9% 12 Nigeria Egypt
Slide 24: PET capacity cycle in China reaching its peak in 2024
CPET PET capacity cycle in China reaching its peak in 2024 China PET capacity additions (MMT) 6.0 • Few projects facing delays 5.0 (E.g., Sinopec and SFX) • PET expansion in China cools 4.0 down as capacity cycle reaches its peak 3.0 • With the introduction of new 2.0 capacities, the gradual phasing
Slide 25: IVL's global PET manufacturing footprint mitigates competition from Chinese imports
CPET CPET 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 imports US (Duty 6.5% + ADD Mexico (Duty 35% since 9%
Indorama Ventures Public Company — FY2024 Earnings Presentation on 6ix