Creating a Sustainable Competitive Advantage from a Global R&D CapabilityBangkok, January 10, 2014

2 IVL CONFIDENTIAL

IVL Business Model for Sustainable Growth

Commodities Specialties

Volume

Overheads

Vulnerabilityto Volatility

Business Sustainability

Model 1 Model 2

R&D

IVLPosition

• Significant Asian capacity serving globally

• Expansion in Indonesia, Thailand and China

• Leverage synergies from global assets to reduce

vulnerability to business volatility

• R&D capability through FiberVisions,

Trevira, Wellman, Auriga, IPI R, IPI N

• Flexibility to swing existing assets to

growing segments

HighLow

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Leveraging Business Model for Product Development

Technology Transfer

Globalization

Smart LocalizationEnhanced Development

Site Technical Leadership

Key Technical Resources

Domain Specific Development

Application specific

Region specific

Customer specific

Effective decision-making and execution supported by a collaboration structure

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Resin R&D Structure

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Fibers R&D Collaboration Structure

IVL Fiber R&D Group Leadership  

R&D Leadership Team (RDLT) 

Innovation Council: Mr. Uday Gill, Chairman         

Steering Committee   Steering Committee

Staple Fibers Filaments      

Centers of ExcellenceCoE CoE CoE CoE

Polymer Staple Nonwoven Filament Spartanburg Bobingen Covington Rayong Rayong NPT Purwakarta Mullagh

Allan HastieJörg

DahringerPrashant

DesaiDinesh Bet R. Raturi S. Munshi Atul Jain

JamesCampbell

Technical StaffKnowledge Management Tools

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Fiber Product Development and Supply Chain Infrastructure

R&D and Technology Platform

• R&D and Application Development Centers in IPI Rayong, IPI NPT, FiberVisions, Trevira, Auriga

• Polymer pilot lines in IPI NPT, Auriga, Trevira

• Pilot Fiber Lines in IPI Rayong (Filament), FiberVisions, Trevira

• Access to leading polymer technologies

Supply Chain and Production Infrastructure

• 7 Fiber CP lines in the Group

• Batch Polymer Lines IPI NPT, Auriga, Trevira

• 26 Staple Fiber Lines + 2 world scale lines under commissioning

• 9 Bi-component Fiber Lines + 1 under commissioning

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Resins R&D Global Technology Platforms

Technology Platform New Products and Technologies Markets/CustomersExamples

Gas Barrier Enhanced Polyester

OxyClear® Resin, OxyClear® Shield Resin Food Packaging--Nestle, Berry Plastics, Graham, Amcor

High Melt Strength Polyester PolyClear EBM 5505, Foamable PET, PET for melt blown films

Tropicana, Coca-Cola, M&Q Plastics

High Impact Strength Polyester

In development—Extrusion Grade PET with improved impact performance, P120F thermoplastic elastomer, improved shrink film resins

Packaging resins, medical plastics, film and sheet, “stretch” nonwovens

High Heat Resistant Polyester

NDC Co-polyester resin grades for microwaveable, clear thermoforms and dishwasher-safe, re-usable bottles

Absolute Plastics, Thermofisher Scientific

Sustainability Non-Sb catalyst options for commodity PET resins; 100% renewably resourced (“bio-based”) packaging resins

Commodity packaging resins

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Fibers/Filaments R&D Global Technology Platforms Sampling

Technology Platform New Products and Technologies Markets

Bi-shrink yarns FINE and INOV bi-shrink yarns Apparel

Polyester staple fibers for nonwovens

Fine fibers for spunlaced wipes; Acquisition layer fibers for absorbent hygiene products

Wipes; Diapers; Femcare; Cured-in-place pipes

Shaped PP fibers Fine trilobal full dull fibers; Hollow PP fibers

Baby wipes; Diapers; Femcare

Bicomponent Fibers Fine bico fibers for hygiene absorbent products; Bicomponent binders for flexible composites & papers

Diapers; Femcare; Air filtration (HVAC); Insulation

Binder Fibers PP binder fibers for lightweight automotive composites;

Automotive panels

Sustainability Recycled PET fibers and filaments; PLA-based fibers; Renewably resourced (“bio-based”) resins

Apparel; Diapers; Tea bags

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Integrated approach to Innovation

SMART PRODUCT DEVELOPMENT

R&

D

Mar

ket

Dev

elo

pm

ent

Manufacturing

Key imperatives

•Customer focused product development

•Product management organization

•Focus on Vitality Index