Indorama Polymers “IRP” Q1, 2006 Analyst Meeting 15 May by ANejman

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									                   Indorama Polymers “IRP”

                   Q1, 2006 Analyst Meeting


                                             15 May 2006
                    The Stock Exchange of Thailand

DISCLAIMER: This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or
dispose of any IRP Shares. Past performance is no guide to future performance and persons needing advice should
consult an independent financial adviser. For the convenience of the interested investors the management is presenting
the financial data in US Dollar also. However, the translation method does not confirm with GAAP and is based on the
method developed by the management which will be followed consistently in future.
Agenda


    Fundamentals


    Q1, 2006 Financial Update


    Projects in Progress


    Focus: Lithuania


    Outlook
    Guiding Philosophy

                            VISION
       To be one of the leading global producer with key
    focus on people and processes thus making INDORAMA
         one of the most admired companies in the world

                           MISSION
    Continuously upgrade quality of products and services
         through people involvement and world class
    processes to attain customer delight thus becoming a
    preferred supplier and institutionalise people learning
             as a key factor for business growth


1
     Major Shareholders
     APL Group, the main promoters holdings are held Beacon Global
     and Indorama Holding
     Major Sharholders                                                            Country       Shares           Percent

 1   Beacon Global Limited                                                        Mauritius       537,198,080     38.9%
 2   Indorama Holdings Limited                                                    BVI             365,999,970     26.5%
 3   Indorama Synthetics (India) Limited                                          India            90,480,000      6.5%
 4   DEG                                                                          Germany          68,519,790      5.0%
 5   Somers (U.K.) Ltd.                                                           British          62,706,300      4.5%
 6   Credit Agricole Investor Services Bank Luxembourg                            Luxemburg        23,500,000      1.7%
 7   Thai NVDR Ltd.                                                               Thai             22,477,200      1.6%
 8   Citibank Nominees Singapore PTE Ltd-Citibank LDN RE Fund 202                 Singaporean      18,997,600      1.4%
 9   Government Saving Bank                                                       Thailand         18,400,000      1.3%
10   Bangkok Bank Pcl.                                                            Thailand         15,000,000      1.1%
11   PICTET & CIE                                                                 Switzerland      13,142,400      1.0%
12   Mr. Kamlesh Chandumal Daswani                                                India            11,560,000      0.8%
13   Ayudhaya Equity Fund                                                         Thailand         10,596,800      0.8%
14   Mrs. Wilai Panwongkloam                                                      Thailand          8,723,100      0.6%
15   Raffles Nominees (PTE) Ltd.                                                  Singapore         8,541,900      0.6%

Note: As on March 29, 2006, book closure for annual general meeting of shareholders              1,267,301,240    91.7%

                  IRP, total issued and paid-up capital Baht 1,382 million

2
     Group Structure


                                          ^Indorama Polymers Public Company Limited
                                                            “IRP”
                                                  PET Polymers: 126,000 tpa


                       51%                                         99.9%                                100%

      *Petform (Thailand) Limited                    Asia Pet (Thailand) Limited                    ^^StarPet Inc., USA
                 “PTF”                                          “APT”                                     “SPT”
    Preforms, Bottles and Closures              Amorphous PET Polymers: 110,000 tpa              PET Polymers: 200,000 tpa


                                                                       20%         60%         20%

                                                                     ^^^UAB Orion Global Pet, Lithuania
                                                                                  “OPT”
                                                                         PET Polymers: 198,000 tpa




     * Joint venture with Serm Suk Pcl which holds 40%                 ^ Expanded capacity in December, 2006. Now 90,000 tpa
     and DEG holds 9%                                                  ^^ Expanded capacity in December, 2006. Now 116,000 tpa
                                                                       ^^^Lithuania plant commissioning expected in Mid-2006




3
    Production Process


                 *0.84
    PTA



                 *0.35                                                   PET
    MEG                          CP Plant      Amorphous   SSP Plant              Preforms
                                                 PET                   Polymers
                                                                                                   Bottle
                                                                                                  Blowing
                                                                                  Closures
     IPA         *0.02




                                 Asia Pet                    IRP                        Petform

                                   StarPet / Orion Global Pet


    *Tons of Input for 1 ton of PET polymers


4
       IRP Capacity 4% of Global Demand in 2007
                              IRP Capacity (Tons)
       600,000

       550,000                                                 524,000
       500,000

       450,000
                                                               198,000
       400,000

       350,000
Tons




       300,000

       250,000
                                          206,000
                                            -                  200,000
       200,000      -
                  170,000                             154%
       150,000                            116,000
                   80,000
       100,000
                              21%                              126,000
        50,000     90,000                  90,000
           -
                   2003                     2005                2007P
                            Asia      North America   Europe


5
    Demand Growth: New Applications




Carbonated Soft Drinks         Water              Iced Tea         Energy Drinks          Juices




              Milk           Ketchup and Sauces    Liquor / Wine                   BEER




    Toiletries & Cosmetics       Paints      Lubricating Oil                Food


6
               PET: Demand Growth and Per Capita
      Global demand of 12.3 million tons, growing at 8-10% p.a.
                                        World PET Demand                                                                                     Per Capita PET Consumption
               14,000                                                                                                         8
               13,000
                                                                                                                              7




                                                                                                              Kg per person
               12,000
               11,000                                                                                                         6
               10,000
    '000 tpy




                9,000                                                                                                         5
                8,000
                7,000                                                                                                         4                                       Global
                6,000                                                                                                         3
                5,000
                4,000                                                                                                         2
                3,000
                2,000                                                                                                         1
                1,000                                                                                                         0




                                                                                                      2006P
                         1995
                                1996
                                       1997
                                              1998
                                                     1999
                                                            2000
                                                                   2001
                                                                          2002
                                                                                 2003
                                                                                        2004
                                                                                               2005
                                                                                                                                   North     East Asia    East    CIS/Russia   Middle   South East
                                                                                                                                  Am erica               Europe                 East      Asia



    Source: Tecnon


                       Demand growing by 1 million tons per annum
                       World per capita consumption is 1.7 kilos per annum
                       Higher per capita consumption in North America (8 kilos) and West
                        Europe (5 kilos), still growing at 7-8% per annum


7
           PET Polymers demand growth in all regions
                                      Regional Demand for PET Polymers
                15,000
                                                                               14,208
                14,000
                                                                13,281
                                                                                1,747
                13,000                        12,331
                                                                 1,637
                12,000      11,416
                                               1,527
                11,000
                             1,420
                                                                                4,361
                10,000
                                                                 4,084
                 9,000                         3,807
    '000 Tons




                             3,535
                 8,000
                 7,000
                 6,000                                                          4,508
                                                                 4,225
                 5,000                         3,918
                             3,628
                 4,000
                 3,000
                 2,000                                                          3,592
                                               3,079             3,335
                             2,833
                 1,000
                   -
                            2005E             2006P             2007P          2008P
           Source: Tecnon            Asia      North America    Europe   ROW



8
        PET: Demand distribution
       Consumption Pattern in PET 2006P        Marketshare of Global Packaging Materials
                                                                in 2005

                                                      Glass     Others
   Others                                                         5%
    29%                              CSD               8%
                                     37%                                                    Plastics
                                              Metal                                           39%
                                              19%

Sheet
 6%
      Beer             Water
                                                              Paper &
       2%              26%
                                                              Boards
                                                               29%       Source: PIRA International
      Source: Tecnon

      • CSD demand growth of 6-7%                • Convenience is the key to growth of
      • Water demand growth of 10-12%              packaging materials
      • Others include beverages and food        • Consumers prefer usability or
      • Sheet include food and non-food            occasion specific packaging
      • Beer, developing stage, high growth      • Priority for product safety and
        potential                                  functionality

  9
     Cans Vs PET, New Equations
                                                                             CSD Costs US c/Lit
        During past four years,                           30
         Aluminum prices increased from
         1400 to 2400 $/ton or by 71%                      25
         while PET prices increased from




                                           US cent/Lit .
         830 to 1,150 $/ton or by 38%                      20

                                                           15
        Aluminum prices are high due to
         energy costs and tight demand                     10
         supply
                                                            5

        In 2007,US Aluminum price will                     0




                                                                                                                         Al Can 360 ml


                                                                                                                                         Al Can 360 ml


                                                                                                                                                         Al can 360 ml
                                                                                           PET 500 ml 6


                                                                                                          PET 360 ml 8
                                                                              PET 600 ml
                                                                 PET 2 Lit
         further increase when new




                                                                                                                                                             24 pk
                                                                                                                                             12 pk
                                                                                                                             6 pk
         contracts are negotiated




                                                                                               pk


                                                                                                              pk
        360 ml bottles replacing Cans
                                                                Container                                 Closure, Label
                                                                Sec Packing                               Filling

                                             Source: Industry Data
10
     Industry Attractiveness

        Global demand 12.3 million tons projected for 2006 and growth at 8-10% per
         annum

             New applications fuelling high growth rates, 2-3 times global GDP growth,
              i.e. energy drinks, flavored water, iced tea and others

        Market movements in packaging reflect preferred packaging material

             PET preferred over glass, PVC and other polymers

             Better properties than other packaging materials

             Consumers prefer convenience of PET for purity, light weight and
              resealable

             Beverage producers prefer PET for being cost effective



11
 PET prices move in tandem with raw materials

                                                            PET Chain Margin Distribution
          1300
          1200                                                   Narrow PET spreads                 95
                                                                 on rising RM costs                                     PET
          1100                   Histrorical, Wide PET                                              85
                                 spreads on lower RM costs
          1000
                                                                                                    75                  C2/MEG
                    900
                    800                                                                             65
     Prices, $/mt




                                                                                                         Crude, $/bbl
                                                                                                                        PTA
                    700                                                                             55
                    600
                                                                                                    45                  pX
                    500
                    400                                                                             35
                    300                                                                                                 Naphtha
                                                                                                    25
                    200
                                                                                                    15
                    100                                                                                                 Crude
                      0                                                                             5
                          2000




                                         2001




                                                     2002




                                                                  2003




                                                                             2004




                                                                                      2005




                                                                                             2006
            Source: Industry prices


12
     Crude impact marginal on PET spreads

     Crude price increase absorbed in petrochemical chain
          Petrochemical prices increased
          Petrochemical spreads were higher on tight supply, low investments
           Post-SE Asian crisis in 1997-98
          Additional supply in year 2005-6 result in decline in spreads


     PET prices move in line with raw material prices
          Able to pass rising costs in past 2 years
          Historically, PET spreads widen on lower raw material costs
          Reversing petrochemical cycle will be beneficial (refer slide 12)




13
     PTA: Capacity additions outstrip demand increase
            Global Capacity & Demand ('000 Tons)                          Global Additions of Capacity & Demand ('000 Tons)
55000                                                          6000
50000
45000                                                          5000
40000
35000                                                          4000
30000
                                                               3000
25000
20000                                                          2000
15000
10000                                                          1000
 5000
    0                                                             0
           2004      2005      2006E      2007E        2008E                 2004       2005       2006E      2007E      2008E
                      Demand            Capacity                                 Demand Increase             Capacity Addition

         North America Capacity & Demand ('000 Tons)                             Asia Capacity & Demand ('000 Tons)
7000                                                           40000

6000                                                           35000
                                                               30000
5000
                                                               25000
4000
                                                               20000
3000
                                                               15000
2000
                                                               10000
1000                                                            5000
     0                                                                0
          2004      2005       2006E     2007E         2008E                  2004       2005      2006E      2007E      2008E
                      Demand            Capacity                                         Demand             Capacity

 Source: CMAI                                                  Note: Asia includes Middle East


14
     MEG: Surplus Availability
                Global Capacity & Demand ('000 Tons)                          Global Additions of Capacity & Demand ('000 Tons)
25000                                                              2500


20000                                                              2000


15000                                                              1500


10000                                                              1000


 5000                                                               500


         0                                                            0
               2004      2005      2006E      2007E        2008E                 2004       2005       2006E      2007E      2008E
                          Demand            Capacity                                Demand Increase             Capacity Addition

             North America Capacity & Demand ('000 Tons)                             Asia Capacity & Demand ('000 Tons)
6000                                                               16000
                                                                   14000
5000
                                                                   12000
4000
                                                                   10000
3000                                                                8000
                                                                    6000
2000
                                                                    4000
1000
                                                                    2000
     0                                                                    0
              2004      2005       2006E     2007E         2008E                  2004       2005      2006E      2007E      2008E
                          Demand             Supply                                           Demand             Supply

Source: CMAI                                                       Note: Asia includes Middle East


15
Agenda


    Fundamentals


    Q1, 2006 Financial Update


    Projects in Progress


    Focus: Lithuania


    Outlook
     Surge: Profits 30% YoY                                                          (in US$)
                 90,000                                                                   6,500
                                                                                          6,000
                 80,000
                                                                                          5,500
                 70,000                                                                   5,000
                                                                                          4,500
                 60,000
                                                                                          4,000
      US$ '000




                 50,000                                                                   3,500




                                                                                                  US$
                 40,000                                                                   3,000
                                                                                          2,500
                 30,000
                                                                                          2,000

                 20,000                                                                   1,500
                                                                                          1,000
                 10,000
                                                                                          500
                    -                                                                     -
                          Q1' 04 Q2' 04 Q3' 04 Q4' 04 Q1' 05 Q2' 05 Q3' 05 Q4'05 Q1' 06

                                   Revenue                   Normalized Net Profit


16
     Financial Performance: Consolidated
                                                                                               (’000)
         Consolidated (Baht)                                                     Consolidated (US$)
        Q1, 2006     Q1, 2005                                                   Q1, 2005    Q1, 2006
            50,127       48,452 Production Quantity (Tons)                         48,452       50,127

         2,706,756        2,852,391 Total Revenue ('000)                            73,867     68,834

           289,425          272,546 EBITDA ('000)                                    6,471       7,659

           218,912          147,613 Net Profit ('000)                                4,122       5,450
              48%                                                    Growth                       32%

            202,940         165,910 Normalized Net profit ('000)                      4,202      5,450
                22%                                                   Growth                      30%
              4,049           3,782 Normalized Net Profit per Ton                        87        109
                 7%                                                   Growth                      25%
              5,774           5,625 EBITDA per Ton                                      134        153
                 3%                                                   Growth                      14%
     * Total Revenue for Q1, 2005 includes trading sales of 7,081 tons or Baht 393 million
      Note: Average Exchange Rate                                                     38.62   39.32


17
                  Higher sales in premium markets
                              Geographical Sales Q1, 2005                                                                        Geographical Sales Q1, 2006
                                                                                                                                            Thailand
                                    Thailand
                                     Region
                                                                                                                                             Region

                                                27%                                                                                                19%
                                                                   North
                                                            47%                                                                              ROW 9%
                                                                  America                                                                                     66%
                                               18%                                                                                         Europe 6%                    North
                                                       8%                                                                                                              America
                                          ROW
                                                     Europe

Note: Sales quantities are indicated by %

                                                                                  B/t                                                                                               B/t
                                 Sales Realisation by Region                                                                             Sales Realisation by Region
                                                                                  $/mt                                                                                              $/mt
                 56,000                                                     260                                         56,000                                                    260
                 54,000                                 Spread - $229/ton                                               54,000
                                                                                                                                                             Spread - $232/ton
                                                                            240                                                                                                   240
                 52,000                                                           Blended Spread, $/mt




                                                                                                                                                                                        Blended Spread, $/mt
                                                                            220                                         52,000
                 50,000                                                                                                                                                           220
                                                                                                                        50,000
  Baht per ton




                 48,000                                                     200                          Baht per ton   48,000                                                    200
                 46,000                                                     180                                         46,000                                                    180
                 44,000                                                     160                                         44,000                                                    160
                 42,000                                                                                                 42,000
                                                                            140                                                                                                   140
                 40,000                                                                                                 40,000
                 38,000                                                     120                                                                                                   120
                                                                                                                        38,000
                 36,000                                                     100                                         36,000                                                    100
                          North America   Thailand      Europe      ROW                                                           North America   Thailand    Europe        ROW




 18
     Surge: Profits 26% YoY                                                               (in Baht)
                  3,500,000                                                                   300,000


                                                                                              270,000
                  3,000,000
                                                                                              240,000

                  2,500,000                                                                   210,000


                                                                                              180,000
      Baht' 000




                                                                                                        Baht' 000
                  2,000,000

                                                                                              150,000

                  1,500,000
                                                                                              120,000


                  1,000,000                                                                   90,000


                                                                                              60,000
                   500,000
                                                                                              30,000


                        -                                                                     -
                              Q1' 05        Q2' 05   Q3' 05        Q4'05         Q1' 06

                                       Revenue                Normalized Net Profit


19
     Post-IPO, Higher Returns to Shareholders

     In Baht                                                                                    In UScents

 0.70                                                  1.60
 0.60
                                    0.64               1.40
 0.50
                                                                                         1.48
 0.40
                                                       1.20
 0.30            0.43
 0.20                                                  1.00
                                                                     1.12
 0.10
 0.00                                                  0.80
               *Q1 2005           Q1 2006                         *Q1 2005             Q1 2006

                 Annualized EPS (Baht)                               Annualized EPS (cents)


     *Q1 2005 and Q1, 2006 based on post-IPO issued and paid-up capital of Baht 1,382,197,870


20
       Key ratios                                                                         (in Baht)

1.40                                               28.0%

1.30      1.29                                     26.0%

                                                   24.0%            23.42%
1.20                                1.19
                                                   22.0%
1.10                                                          19.50%                        20.10%
                                                   20.0%                              18.70%
1.00                                               18.0%
                                                   16.0%
0.90
                                                   14.0%
0.80             0.75                              12.0%
0.70                                        0.67   10.0%

0.60                                               8.0%
                                                   6.0%
0.50
                                                   4.0%
0.40                                                              2005                   31-Mar-06
             2005                    31-Mar-06               Return on Capital Employed (excl. OPT)

            Current ratio Net Debt-Equity ratio              Return on Equity

                                                                On higher base of
                 Lower leverage
                                                           capital employed and equity

21
     Financial Position
                                                            (Baht’ 000)
          Balance Sheet as on                 31-Dec-05     31-Mar-06
          Total Current Assets                  3,549,648    3,449,688
          Total Assets                         10,114,561   10,255,880
          Total Current Liabilities             2,765,726    2,897,819
          Total Liabilities                     5,845,996    5,824,175
          Net Interest bearing Debt             3,182,373    2,959,049
          Issued and paid-up Capital            1,382,198    1,382,198
          Total Shareholders Equity             4,268,565    4,431,705

          Current Ratio                              1.28         1.19
          Total Liabilities to Equity                1.37         1.31
          Net Debt to Equity                         0.75         0.67
          Book Value per Share                       3.09         3.21

              Includes Baht 1,693 million (Euro 35.8 million)
                        debt of Orion Global Pet

22
     Cash flow
                                                                  (Baht’ 000)
                                                     2005         Q1' 2006
        Net Profit                                     771,738      218,922
        Cashflow before change in working capital    1,127,085      291,246
        Change in working capital                     (105,274)     300,141
        Free cashflow before capex                   1,021,811      591,387
        Capex                                       (2,599,769)    (497,164)
        Free cashflow after capex                   (1,577,958)      94,223

        Proceeds from capital increase               1,151,865           -
        Repayment of loans                          (1,441,533)     (230,758)
        Additional loans                             1,806,391       342,651
        Others                                         (15,411)       (4,498)
        Cashflow from financing                      1,501,311       107,395

        Net Cashflow                                  (76,647)       201,618
        Cash beginning                                385,035        308,389
        Cash closing                                  308,389        510,007




23
     Key Ratios: Comparison

      Q1, 2006    2005                 Particulars                  2005   Q1, 2006
       (Baht)    (Baht)                                            (USD)    (USD)

       12.0%     17.0%         Return on Capital Employed          16.7%    12.1%
       18.7%     19.5%    Return on Capital Employed (excl. OPT)   19.1%    18.8%
       20.1%     23.4%               Return on Equity              24.5%    18.6%
       9.1%      9.5%                Return on Assets              9.3%     8.0%
        1.06      1.37           Assets Turnover (Times)            1.16     1.06

        1.19      1.29                Current Ratio                1.28      1.19
        0.80      0.85                 Quick Ratio                 0.85      0.80
        1.31      1.36           Total Liabilities - Equity        1.31      1.34
        0.78      0.82                Debt - Equity                0.78      0.79
        0.67      0.75              Net Debt-Equity                0.72      0.68
        7.42      6.44             Interest Coverage               6.46      8.06




24
Agenda


    Fundamentals


    Q1, 2006 Financial Update


    Projects in Progress


    Focus: Lithuania


    Outlook
     Petform, Thailand
     Preforms & Closures Expansion and Bottling Project

      Preform 4th machine and Closure 3rd machine installed and started

     commercial production in Q1, 2006

      In April, 2006, Bottle blowing project completed and started commercial

     production

      Capital expenditure of Baht 248 m. upto end of Q1, 2006 balance around Baht

     70 million to be capitalized in Q2, 2006

      Loan draw down of Baht 260 m. upto Q1, 2006 (Sanctioned Baht 260 m.)

      Interest during construction period to be capitalized and charged to P&L from

     Q1, 2006



25
     Orion Global Pet, Lithuania

      PET Polymers Greenfield Project
       Ongoing work at site, installation of plant & equipment, storage facility and
      utilities
       Capital expenditure of Euro 66.8 m. upto end of Q1, 2006
       Loan draw down of Euro 35.8 m. upto end of Q1, 2006 (Sanctioned Euro 57.5
      m.)
       Interest during construction period to be capitalized and charged to P&L from
      Q3, 2006
       Commissioning in Mid-2006




30
     StarPet Inc., USA

      PET Polymers Expansion Project

       Site work and railway siding work in progress

       Plant and equipment supply agreements signed

       First lot of plant and equipment to arrive in May, 2006 at site

       Capital expenditure of around US$ 4 m. upto end of Q1, 2006

       Loan draw down US$ 1.2 m. upto end of 2005 (Sanctioned US$ 31 million)

       Interest during construction period to be capitalized and charged to P&L from

      Q1, 2007

       Start-up of commercial operations in January, 2007




36
     Indorama Polymers, Thailand

      PET Polymers Expansion Project

       Increase capacity of PET Polymers by 36,000 tpa at existing site

       Supply agreements signed with plant & equipment suppliers

       Proposed capital expenditure of US$ 5 million

       Financing with US$ 4 million long term loans and balance from internal cash

       Interest during construction period to be capitalized and charged to P&L from

      Q1, 2007

       Start-up of commercial operations in January, 2007




39
Agenda


    Fundamentals


    Q1, 2006 Financial Update


    Projects in Progress


    Focus: Lithuania


    Outlook
     Strategically located in the gateway of EU and CIS




                                                                           Lithuania




     Lithuania, EU member and recognized as the prime transport center in the region
     linking the EU with the East, CIS & Russia


40
     Growing economy attracting FDI




     Source: Lithuanian Department of Statistics, www.std.lt

41
     Klaipeda: Free economic zone and transport hub



Orion Global Pet
Plant Location




       Klaipeda, a transport and logistics hub with a developed infrastructure

42
     Port of Klaipeda - the biggest container port in Baltic States
     and open for investments




                 Source: Klaipeda State Seaport, www.portofklaipeda.lt
     • Klaipeda, a free economic zone with developed infrastructure and tax benefits
     • Klaipeda is a big transport hub connecting sea, land and rail routes from East to
      West
     • Port of Klaipeda has been designated the EU's regional priority port,
              linked to all major ports in EU
              an ice free port
              capacity of more than 30 million tons per year


43
     Europe Continues to be a Net Importer
                    4,750                                                                   100%
                    4,500
                    4,250                                                                   90%
                    4,000
                    3,750                                                                   80%
                    3,500
                    3,250                                                                   70%
                    3,000
                    2,750                                                                   60%
                    2,500
                    2,250
                                                                                            50%
       '000 Tons




                    2,000
                    1,750
                                                                                            40%
                    1,500
                    1,250
                                                                                            30%
                    1,000
                      750
                      500                                                                   20%
                      250
                      -                                                                     10%
                     (250)   2003   2004         2005E     2006P         2007P      2008P
                     (500)                                                                  0%
                     (750)
                   (1,000)                                                                  -10%
                   (1,250)
                   (1,500)                                                                  -20%

      Source: Tecnon                Production   Demand   Utilization   Net Trade

     Demand outstrips supply, imports to continue but domestic producers at
     advantage over imports

44
     Demand outstrips Supply…Room to grow
       PET producers in Europe market:
     S. No.       Producer          Plant Locations             2006
                                       (Country)               (Tons)
       1      Advansa        UK                                 165,000
       2      CEP Tergal     France                              75,000   Uneconomic size
       3      Elana          Poland                             129,000
       4      Equipolymers   Italy and Germany                  450,000   350,000 tons in land locked location
       5      Indorama       Lithuania                          198,000
       6      Invista        Germany                            270,000   Land locked location and
                                                                          majority quantity is DMT based
       7      M&G            Italy                             300,000
       8      Neo Group      Lithuania                         154,000    Capex cost US$ 731 per ton
       9      Novapet        Spain                             240,000
      10      Selenis        Portugal, Italy, Greece, Spain    525,000    High acquisition cost US$ 670/ton
                                                                          for 175,000 tons capacity
      11      SK Euroechem   Poland                             120,000
      12      Voridian       Spain, UK, Netherlands             480,000
      13      Wellman        Netherlands                         60,000   Uneconomic size
              Total                                           3,166,000

     • IRP capacity represents 6.3% of the capacity
     • Total demand around 3.5 million tons and demand growth of 7-8% per annum
       equivalent to around 250,000 tons per annum


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     Key highlights
     • Economies of scale, OPT will have the largest single line plant in Europe
     • Low capex cost, around US$ 485 per ton compared to peers
     • Low Conversion cost, comparable to Asia of around US$ 80 per ton considering
     low cost base, a developing economy, and required manpower around 110 persons
     • Availability of key raw materials, PTA & MEG, available in Europe and suppliers
     in Asia and USA have manufacturing facility in Europe
     • Demand exceeds supply, marketing will be concentrated in the markets of
     Greater Europe including CIS & Russia which are supply deficit regions. OPT will
     substitute imports and capture growing demand through sales to:
              Global Convertors, customers of the Group in Asia and USA
              Global Brand Beverages, customers of the Group in Asia and USA
              Regional Convertors




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Agenda

    Fundamentals


    Q1, 2006 Financial Update


    Projects in Progress


    Focus: Lithuania


    Outlook
     Spread * Quantity = Profits
     Committed volume growth upto year 2007...

       IRP Group PET Polymers Effective Capacity (tpa)                Preforms & Closures Capacity (Million pieces)
 600,000
                                                              1,200
 500,000                                                      1,100
                                                              1,000
                                                     Europe     900                                             Bottles
 400,000
                                                                800
 300,000                                                        700
                                                     USA        600                                             Closures
 200,000                                                        500
                                                                400
 100,000                                                        300
                                                     Asia       200                                             Preforms

       0                                                        100
             2004      2005      2006      2007                            2004         2005         2006



                                                              Completed:
 PET Polymers:
                                                              • Forward integration into bottles for
                                                                150m. pieces
 • Current PET capacity 206,000 tons                          • Capacity increase in preforms by
                                                                42% and closures 50%
 • 2007 PET capacity 524,000 tons                             • Expansion in line with growth plans
                                                                of customers


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     Outlook

     • PET Polymers demand growth at 8-10%, replacing aluminium and

      glass as cost effective and convenience of use

     • Asian operating rates to improve with limited new capacity additions

     • Raw materials in a long market, increasing supply, and larger volume

      purchase to leverage favorable prices


     Raw material prices are rising and we expect to pass rising costs to
     our customers

                   …IRP, Prepared and Enthusiastic

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     IRP Positioning

         7th largest global PET producer with end-2006 capacity at
          524,000 tons

         Only PET producer with production facility in Asia, Europe and
          North America enabling to capture demand growth in all markets

         Regional presence provides ability to service large global
          customers at low logistics cost

         Large volume purchase of raw materials enable higher volume
          discounts thereby increasing spread

         High capacity utilization resulting in lower conversion costs

         New plants of economic size at lower capex


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