Earnings Release

Bangkok, Thailand - 6 May 2021 – Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced its first quarter 2021 financial results.

1Q2021 Performance Summary

• Revenue of US$3,240M in 1Q2021, +10% YoY
• Reported EPS of 1.04 THB, compared with 0.20 THB in 4Q20 and 0.07 THB in 1Q20
• Reported EBITDA of US$483M coming from higher Core EBITDA (US$369M, registering a growth of 45% QoQ and 21% YoY), positive contract adjustments and inventory gains
• Our company-wide cost and business transformation, Project Olympus, yielded US$67M during the quarter, on track to deliver our 2021 target of US$287M (US$195M extra efficiency gains over 2020)

Overview
Positive global sentiment, underscored by rebounding global oil prices and vaccine rollouts, has resulted in strong volume demand and strong margins for all IVL’s key products, driven at first by recovery in China and carrying forward into the second quarter. Global inventory levels are tight and combined with supply chain shocks are leading to margin increase in all commodity products, supporting the increase in crude oil prices. The rise in crude prices has also brought with it improvement in the shale gas advantage, benefiting IVL’s IOD (Integrated Oxides and Derivatives) business segment in North America. All of this is translating into stronger than anticipated earnings in first half 2021.

Transformation Underway
Amidst the recovery, IVL remains focused and committed to the various transformation programs that it embarked on in 2020. The company is making good progress on its journey towards one ERP, strengthening data platforms and digital tools that will allow the company to improve management. Better business analytics will improve discipline in areas such as exposure management, a crucial aspect given the complex nature of today’s markets. Additionally, IVL has created centralized expert enabling functions in areas such as Digital and Business Continuity to provide best-in-class support to its business segments.

IVL’s recent leadership re-organization – 16 distinct business verticals within three business segments under one global CEO – demonstrated deftness and agility in keeping supply chains functioning with minimal disturbance to cater to strong customer demand. IVL’s regionally integrated business model has proven beneficial through the various supply chain disruptions seen this quarter, notably the Polar Vortex and Suez Canal blockage. Having access to its own raw material has allowed IVL to operate at higher rates, and thereby reliably serve customers, due to our supply chain resilience.

ESG & Carbon Neutrality
Carbon neutrality will be IVL’s key differentiator going forward, and IVL has laid out a strategy to include recycling, renewable energy, ethical carbon offsets and adoption of new green technologies and initiatives. The company is in a unique position as the largest PET producer to be the leading sustainable player by leveraging on its scale to support customer’s sustainability targets.

This past Earth Day, IVL proudly launched the industry’s first certified Carbon Neutral PET pellet through its Deja™ sustainable brand platform. IVL’s carbon neutral PET pellets are made with renewable energy, locally sourced materials and low impact water transport to achieve a carbon neutral footprint for its customers. Deja™ is integral to IVL’s commitment to contributing to the achievement of the UN 2030 agenda for sustainable development.

Project Olympus
IVL’s company-wide cost and business optimization program continues on track. Having over-delivered on its targets by 21% in 2020, the company has made progress as planned in 1Q21. The program has yielded US$67M this quarter, split evenly between business-led initiatives and cost transformations. The majority are initiatives focused on sales excellence and operational excellence, allowing IVL to provide better value propositions to customers and improve overall productivity and costs. IVL continues to engage leading external experts to bring the tools and practices that will provide effective ways to execute the Olympus initiatives, enabling IVL businesses to achieve their full potential. IVL remains on track to achieving US$287M efficiency gains in 2021 (US$195M more over 2020).

Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, “Last quarter I stated that 2020 brought no structural damage to the industries IVL plays in and the first quarter of 2021 has further solidified this thesis. Our advantaged portfolio and experienced management, supported by our transformation programs, will yield superior returns for shareholders in line with our 2023 targets. Our journey towards carbon neutrality will be a key guidepost for IVL’s actions going forward, in our quest to be a world class sustainable chemical company.”