enterprise value enhancement for global leadership uday gill fibers business
TRANSCRIPT
Enterprise value enhancement
for
global leadership
Uday GillFibers business
Business value enhancement– the next phaseContinued focus on sustainable and profitable growth
Cross Multiply Innovation
Global Supply Partnerships
Operational Excellence
Engaged and Empowered PeopleCurrent Value Structure
2010 2013Volume KT 279 875Revenue $M 381 1,370
Target Value Structure2018
Volume KT 1,968Revenue $M 3,818
Enhancement Process
2014 - 2018
Regulatory / Industry moves
Multiple 20132.2x2.8x
Target Acquisitions/investments
Baselining andGrowth Strategy
Growth Strategy
Acquisitions Integration
Greenfield ExpansionOperaional Excellence
Our path to growth and globalizationHighly diversified global portfolio
279
415
875
REVENUE $ mn 381 7661,370
CAGR %(2010 – 2013)
Volume 44
Revenue 58
HVA Focus Brownfiled Expansion
1,211
2,404
Volume KT
2009 - 2010 2010 - 2011 2011 - 2013 2013 - 2014Timeline
Synergistic portfolio of industry leading brands
GlobalAirbag Yarn
leader Globally #1 Bi-Co Fibers
Europe #1 Specialty Fibers
Europe #1 Recycle Fibers
Procure-ment
CustomerIntimacy
AssetUtilization
R&D
Focus
Leveraged western IP and market access to swing Asian assets to HVAAsian assets to help western units regain lost markets
Apparel
Home HygieneAuto Industrial
Apparel
Home
HygieneAuto Industrial
Planned Assets New Assets
Asia 2010 Asia 2018
European and North American business mix
Volume 256 KT Volume 909 KT
Hygiene
Industrial
Auto
Home Safety
Specialty Apparel
0 50 100 150 200
Raw Material Variable Cost Fixed Cost EBITDA IVL Commdity Price IVL Specialty Price 1,000
1,200
1,400
1,600
1,800
2,000
2,200
Business model enhances IVL brand premium ( 2013 )
1. Based on IVL all units price for standard grades of commodity productsSource: IVL analysis
$/MT
Brand Value
Fixed Cost
Raw Material
Specialty EBITDA Premium
ICIS commodity priceVariable Cost
Specialty price premium
2009 2010 2011 2012 2013 2018 -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Operations Utilities Commercial Consumables
Continued focus on operational excellence Reducing operating cost and increasing operational efficiency
Operational Excellence Savings($ K)Major Initiatives
Utilization Improvement
Capacity utilization > 90%
Efficiency Improvement
Savings 2009-13 $ 13.6 mn
Energy Saving
Savings 2009-13 $ 11.1 mn
RM and Procurement Initiatives
Savings 2009-13 $4.5 mn
Significant cost reduction from process improvement initiativesNote: Savings under major initiatives total from 2009 - 2013
Cumulative return on acquisitions less than 5 years
1 2 3 4 5 6 7 8 -
100
200
300
400
500
600
700 Cumulative Investment Cumulative EBITDA
5 Years
Note: Doesn't’t include IPI assets ,which are already paid back and IPCI
Mega trends – changing demographics
Growing World Population
Increasing Affluence and Urbanization
7.6 billion people will live on earth by 2018
55% of world’s population will live in cities by 2018
•Apparel and Home• Sports and active wear2018 48.3 mn tons2013 37.4 mn tons
Medical and hygiene segment2018 3.0 mn tons2013 2.3 mn tons
•Technical Segment•Filtration/ Industrial2018 27.5 mn tons2013 20.2 mn tons
Sub Trends
Opportunity
IVL Focus2018 833 KT 2013 443 KT
2018 301 KT2013 224 KT
2018 359 KT2013 208 KT
CAGR5.3%
CAGR5.7%
CAGR6.5%
Lifestyle Changes
CAGR13%
CAGR6%
CAGR11%
Note: All fibers excluding cotton and wool
2013 Apparel Home Automotive Hygiene Industrial 201840
50
60
70
80
61
6.6
4.4
0.8 0.7
6.5
Man made fibers growth led by technical textilesIndustrial, Automotive and Hygiene segment to grow at higher rate
2013 59.9 mn tons
2018 78.8 mn tons
Note: All fibers excluding cotton and wool
4.9%
5.9%5.3%
5.7%
6.5%
Mn tons
CAGR 2013 - 2018
Apparel40%
Home22%
Auto4%
Hygiene4%
Industrial30%
Apparel39%
Home22%
Auto4%
Hygiene4%
Industrial31%
IVL focus – HVA segmentsG
row
th R
ate
Segment Attractiveness
Construction3 mn tons
Industrial2.6 mn tons
Medical and Hygiene2.7 mn tons
Automotive3.7 mn tons
Sports1.5 mn tons
Geo Textiles0.5 mn tons
Safety0.4 mn tons
Packaging4 mn tons
Home13 mn tons
8%
4%
Apparel24 mn tons
Technical Clothing1.5 mn tons
Agriculture2.2 mn tons
2013 Apparel Home Automotive Hygiene Industrial 20180
200
400
600
800
1,000
1,200
1,400
1,600
255
181
8877
63
Apparel35%
Home21%
Auto8%
Hygiene20%
Industrial16%
IVL strategic growth in target segments Leveraging regional capabilities and competitiveness
2013 875 KT
KT
11%
19%31%
6%6%
CAGR 2013 – 201812%
20181,493 KT
Apparel35%
Home15%Auto
4%
Hygiene26%
Industrial20%
The competition we respect
• IVL better positioned from cost of production, access to specialty know how and global presence•Some of IVL’s competitors have preferential trade agreements in their favor• IVL is actively working on acquiring position in countries with preferential trade benefits
Project pipeline focused on diversified technical segments Unbeatable product portfolio for Competitive Advantage
2013 BudgetedGrowth
PotentialGrowth 2018
Volume (KT) 875 1,493 475 1,968
Revenue ($ mn) 1,370 2,970 855 3,818
Revenue Growth ($ M)
2013IPCI
Projec
t Pan
da
Projec
t Silk
Other
Projec
ts PLA
Recyc
ling
2018
-
1,000
2,000
3,000
4,000
Thank You