Indorama Polymers “IRP” 2005 Analyst Meeting 1 March 2006 The Stock Exchange of Thailand

Indorama Polymers “IRP”2005 Analyst Meeting1 March 2006The Stock Exchange of Thailand DISCLAIMER: This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Indorama 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.

Fundamentals 2005 Financial Update Focus: Thailand Global Outlook Agenda

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

Group Structure Post-IPO issued and paid-up capital Baht 1,382 million APL Group Public DEG *Indorama Holding Ltd. Beacon Global (Thailand) Ltd. Indorama Synthetics (India) Ltd. 23.1% 26.5% 38.9% 6.5% 5.0% Îndorama Polymers Public Co. Ltd (IRP) PET Polymers: 126,000 ton/yr 99.9% 9% 51% 100% Petform (Thailand) Limited (PTF) Preforms and Closures Asia Pet (Thailand) Ltd. (APT) Amorphous PET Polymers:110,000 ton/yr ^^StarPet Inc. (SPT), USA PET Polymers:200,000 tons/yr 20% 60% 20% ^^ÛAB Orion Global Pet (OPT) Lithuania, Europe PET Polymers: 198,000 ton/yr Êxpanded capacity in December, 2006. Now 90,000 tpa ^Êxpanded capacity in December, 2006. Now 116,000 tpa ^^^Lithuania plant commissioning expected in Mid-2006 *Name change effective from August 25, 2005 2

Production Process Bottle blowing & filling *0.84 PTA *0.35 CP Plant SSP Plant Preforms MEG PET Polymers Amorphous PET Closures IPA *0.02 Petform Asia Pet IRP *Tons of Input for 1 ton of PET polymers StarPet / Orion Global Pet 3

Demand Growth: New Applications Carbonated Soft Drinks Water Iced Tea Energy Drinks Juices BEER Ketchup and Sauces Milk Liquor / Wine Toiletries & Cosmetics Paints Lubricating Oil Food 4

IRP Capacity 4% of Global Demand in 2007 524,000 206,000 170,000 154% 21% 5

PET: Demand Growth and Per Capita Global demand of 12.5 million tons, growing at 8-10% p.a. Global 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 6

PET Polymers demand growth in all regions 14,208 13,281 12,331 11,416 Source: Tecnon 7

PET: Demand distribution Source: PIRA International Source: Tecnon • CSD demand growth of 6-7% • Water demand growth of 10-12% • Others include beverages and food • Sheet include food and non-food • Beer, developing stage, high growth • potential • Convenience is the key to growth of • packaging materials • Consumers prefer usability or • occasion specific packaging • Priority for product safety and • functionality 8

Plastics highest growth packaging material Source: PIRA International Source: Rexam Beverage • Plastics highest growth segment • Low prices of large family packs is • driving strong growth of plastic bottles • Preference to recyclable v/s refillable • packaging material • PET growth segment in beverage • packaging • Glass and can is stable • USA a growth market where only 50% • of CSD in PET • Emerging markets favor PET 9

Shift from Aluminium Cans to PET Bottles ? LME Aluminium Prices PET Polymers Prices 1,150 2,400 US$ / Ton 39% 830 75% 1,370 Source: LME Source: PCI • Industry analysts predict branded beverages to increase use of PET Bottles over • aluminium considering: • Cost effective, rising cost of aluminium • Resealed and large packs, convenience of PET • PET development in small packs to directly compete with Cans 10

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 Industry Attractiveness 11

PET prices move in tandem with raw materials Improving PET spreads on lowering RM costs Narrow PET spreads on rising RM costs Histrorical, Wide PET spreads on lower RM costs Source: Industry prices 12

PET chain quarterly margin distribution Source: Industry 13

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) Crude impact marginal on PET spreads 14

Financial Performance: Proforma 15

Higher profits in 2H’2005 Proforma Baht Katrina impact in H2’05 Katrina impact in H2’05 16

Higher sales in premium markets 20% 32% 43% 61% 13% Gain from market mix 7% 13% 12% Note: Sales quantities are indicated by % Spread Spread Higher sales in premium markets = Improved Spreads 17

Surge: Revenues 16% & Profits 54% YoY Proforma Baht 18

Surge: Revenues 13% & Profits 77% YoY Proforma US$ 19

Post-IPO, Higher Returns to Shareholders In Baht In UScents 22% 41% *2004 based on proforma financial statements for the given period Issued and paid-up capital for 2005 Post-IPO of Baht 1,382,197,870 while for 2004 Baht 1,062,197,870 20

Key ratios In Baht terms On Post-IPO share capital of Baht 1,382 m. Liquidity Position Leverage Notes: Based on proforma financial statements for the given period Issued and paid-up capital for 2005 Post-IPO of Baht 1,382,197,870 while for 2004 Baht 1,062,197,870 21

Financial Position Includes Euro 32.3 million debt of Orion Global Pet 22

Key Ratios: Comparison 23

Integrated operations in Lopburi PTA MEG IPA Inputs Inputs Asia Pet (Thailand) Limited Output: Amorphous PET Polymers - 110,000 tons Exports Domestic Captive Indorama Polymers Pcl. Output: PET Polymers - ^126,000 tons Exports Domestic Captive *Petform (Thailand) Limited Output: Preforms and Closures Exports Domestic Captive Serm Suk Pcl. Output: Bottled Beverages Bottled Beverages End Users *JV with Serm Suk Pcl. ^Expanded capacity in December, 2006. Now 90,000 tpa IRP Group Cos. 24

Competitive Edge: IRP has low capex cost Notes: Producer represented here are (BPC Thailand, Thai Pet Resin Thailand and Thai Shinkong. The investment and capacity data has been taken from various published reports. 25

Surplus domestic feed stock availability=Higher Spreads • Domestic availability of raw materials is key to higher spreads • Countries with surplus domestic feedstock supply help polyester plants in achieving high capacity utilization because of competitive raw material costs hence higher spreads eg. Thailand 26

Thailand: Surplus PTA Industry Sources 27

IRP has announced expansion of PET polymers capacity by 36,000 tpa, current capacity 90,000 tpa and post-expansion 126,000 tpa, at the same site New capacity expected to start commercial operations in January, 2007 Proposed capital expenditure is US$ 5 million per ton Expansion to be financed by long term loans US$ 4 million and balance from internal cash Expand PET Polymers capacity by 40% Rationale for expansion: • Rising demand from customers in domestic and export market • No major capacity additions in Asia ex-China for next 2 years • Current capacity operating at full for 2 years • Utilize surplus Amorphous PET capacity 110,000 tpa for better margins • Expected pay back of 2 years, lower incremental cost 28

First producer of PET Polymers in Thailand CAGR Revenue 34% (Year 1996 to 2005) Consistently profitable operations since inception Integrated operations at single location Low capex cost per ton Large customer base in domestic and export markets Indorama Polymers Market in Thailand: • Demand for PET polymers growing at 15% per annum • Low per capita consumption of 1.1 kilos v/s global average of 1.7 kilos • CSD packaging more in glass, projected to shift in PET in line with global market movement • Surplus availability of PTA and MEG start-up, the main raw materials 29

Year 2005 in Hindsight Year 2005 started with uncertainity on demand growth and its negative impact on spreads from: • Rising crude prices • Over capacity in China • Tight supply of raw materials, PTA and MEG • August 2005, Hurricane Katrina and Rita adding to tight supply of raw materials IRP in year 2005, • Strong operations, higher production on increased plant efficiency • Able to pass rising costs and PET spreads improved on lowering of raw material spreads • Relationship with suppliers enable to overcome unusual supply situation • Responsive, ability to move products to premium markets Result: Normalized pre-tax net profit increase to Baht 899 million, growth 172% 30

IRP has achieved 84% CAGR Sales 240,000 • Customer acceptance • Global delivery capability 220,000 200,000 180,000 160,000 140,000 Tons 120,000 100,000 80,000 60,000 40,000 20,000 - 2002 2003 2004 2005 Expanding markets and customer base 31

Spread * Quantity = Profits Committed volume growth upto year 2007... More than 1 Billion pieces Growth 154% • Preforms & Closures: • Forward integration into bottles for • 150 m. pieces • Capacity increase in preforms by • 42% and closures 50% • Expansion in line with growth plans • of customers • PET Polymers: • 7th largest global producer • Current PET capacity 206,000 tons • 2007 PET capacity 524,000 tons 32

Project Updates NEW PET Polymers: Indorama Polymers, Thailand Expansion Project • Increase capacity of PET Polymers by 36,000 tpa at existing site • 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 • Commissioning in December, 2006 PET Polymers: Orion Global Pet, Lithuania Greenfield Project • Capital expenditure of Euro 60 m. upto end of 2005 • Loan draw down of Euro 32.3 m. upto end of 2005 (Sanctioned Euro 57.5 m.) • Interest during construction period to be capitalized and charged to P&L from Q3, 2006 • Commissioning in Mid-2006 PET Polymers: StarPet Inc., USA, Expansion Project • Site work in progress and plant supply agreement signed • 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 • Commissioning in December, 2006 Preforms & Closures: Petform, Thailand Expansion Project • Capital expenditure of Baht 175.6 m. upto end of 2005 • Loan draw down of Baht 83 m. upto end of 2005(Sanctioned Baht 260 m.) • Preforms and closures start operations in Feb. 2006 and blowing plant to start inQ1,2006 33

Looking ahead... • Global packaging market of US$ 370 billion growing at 4.8%, plastics • (including PET) is the largest segment and with highest growth of 5.9% • 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 • PET Polymers volume growth from 216,000 tpa to 524,000 tpa by • December, 2006 and year 2007 to be the full year of operations • Added new capacity for preforms and closures and Blowing bottle, a • new product line to be added in Q1, 2006 …IRP, Prepared and Enthusiastic 34

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 IRP Positioning 35

Low Operating Costs High capacity utilization Continuous volume growth Lower fixed overheads than comparable peers Enhancing Spreads Global delivery model - Domestic production base for regional reach Market mix - Focusing sales to premium markets translates into higher spreads Product mix - Multiple production base caters to regional speciality grade needs Sales Strategy - Balance between contracted and spot Competitive Raw Material Buying - Large volume purchases, Secured volume discounts Key Value drivers Better Spreads Increasing Shareholder’s Returns = 36

THANK YOU

Indorama Polymers “IRP” 2005 Analyst Meeting 1 March 2006 The Stock Exchange of Thailand