ข้อมูลรายงานต่อตลาดหลักทรัพย์
Submission of reviewed FS of IVL for Q1/2010 and MD&A
Ref.No.IVL005/05/2010
May 12, 2010
The President
The Stock Exchange of Thailand
Subject: Submission of Reviewed Financial Statements of Indorama Ventures
Public Company for
the 1st quarter of 2010 and the Management's Discussion and Analysis (MD&A)
We are pleased to submit:
1. A copy of the Consolidated and Company only Reviewed Financial Statements
for the 1st quarter of 2010 (a copy in Thai and English)
2. Management's Discussion and Analysis (MD&A) for the 1st quarter of 2010 (a
copy in Thai and English)
3. Company's performance report, Form F45-3 (a copy in Thai and English)
Please be informed Form 45-3 shows consolidated earnings per share for Q1,
2009 of Baht 3.31 per share which is based on par value of Baht 10 per share.
The earnings per share for Q1, 2009 would have been Baht 0.33 per share based
on par value of Baht 1 per share. The par value was split from Baht 10 per
share to Baht 1 per share in year 2009.
Please be informed accordingly.
Sincerely yours,
(Mr. Aloke Lohia)
Group Chief Executive Officer
Company Secretary
Tel: +66 (0) 2661-6661
Fax: +66 (0) 2661-6664
-1-
INDORAMA VENTURES PUBLIC COMPANY LIMITED
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
FOR THE PERIOD OF 1Q 2010 (Consolidated)
IVL 1Q10 HIGHLIGHTS
- Higher sales revenue in all business segments on higher volumes and
higher average selling prices
- Average sales realization in all business segments was higher in 1Q10 in
comparison to 4Q09 and 1Q09 which was in line with higher crude and
petrochemical product prices.
The table below summarizes the average sales realization increase both in
absolute prices in Baht equivalent and exchange adjusted prices:
1Q10 over 4Q09 1Q10 over 1Q09
Movement *Forex Movement *Forex
Business segment in Baht factored in Baht factored
PET 9% 14% 13% 16%
Polyester & Wool 4% 6% 41% 45%
PTA 3% 6% 25% 27%
*Adjusted for movement in forex rates quarter on quarter
- Higher consolidated sales and earnings in 1Q10:
The followings are the consolidated sales and earnings converted
equivalent in USD -
- Net sales for 1Q10 of USD 733 million, a growth of 17% over 4Q09
and 47% over 1Q09
- EBITDA for 1Q10 of USD 92 million, a growth of 13% over 4Q09 and
15% over 1Q09
- Profit before tax for 1Q10 of USD 57 million, a growth of 12% over
4Q09 and 29% over 1Q09
- Net profit after tax and minority interest for 1Q10 of USD 48*
million, a growth of 16% over 4Q09 and 53% over 1Q09
The following are the consolidated sales and earnings as reported in
Thai Baht -
- The results below have been achieved despite the strengthening of
the Thai Baht (an accounting impact only; otherwise the business has a natural
hedge in each region of operations) which resulted in lower earnings from
overseas subsidiaries on translation to Thai Baht at the average foreign
exchange rate for the quarter. The Thai Baht strengthened against the USD by
1.3% in 1Q10 over 4Q09 and by 6.9% in 1Q10 over 1Q09 and the Thai Baht
strengthened against the Euro by 7.5% in 1Q10 over 4Q09 and by 1.1% in 1Q10
over 1Q09
-2-
- Net sales for 1Q10 of Baht 24,100 million, a growth of 15% over 4Q09
and 37% over 1Q09
- EBITDA for 1Q10 of Baht 3,010 million, a growth of 12% over 4Q09 and
7% over 1Q09
- Profit before tax for 1Q10 of Baht 1,890 million, a growth of 11%
over 4Q09 and 20% over 1Q09
- Net profit after tax and minority interest for 1Q10 of Baht 1,583*
million, a growth of 15% over 4Q09 and 43% over 1Q09
*Including minority interest of Baht 53 million for IRP considering
on completion of tender offer IVL shareholding has increased from 69.29% to
99.08% on February 3, 2010
- In 1Q10, despite the increase in absolute prices of crude oil and
petrochemicals, the net margin achieved was 6.6% which is the same as 4Q09 of
6.6% and higher than 1Q09 of 6.3%
- Annualized weighted earnings per share of Baht 1.51 per share and a return
on equity of 30.8% in 1Q10
- In 1Q10, there was an increase in free cash flow before capex and
investments of Baht 2,054 million despite cash outflow for working capital on
higher volumes and higher prices. The free cash flow after capex was Baht
1,646 million
- Net debt reduced by Baht 6,632 million in this quarter, resulting in net
gearing ratio of 53% lower than 63% at the end of 2009
- Announcement of new projects:
- A strategic investment in South Europe to enlarge our presence
across Europe IVL has agreed for a 50% joint venture with PCH Holdings S.R.L.
for acquisition of assets PTA and PET business in Italy from Equipolymers. The
acquisition will comprise PTA capacity of around 190,000 tons, and equivalent
capacity for PET resins. The transaction is expected to be completed in end
May 2010. The transaction is expected to be value accretive to earnings,
increase book value per share and will not impact net gearing.
- Acquisition of the assets of 24MW utility plant co-located at IVL's
site in Rotterdam, the Netherlands. Currently the utility plant supplies
steam, electricity, compressed air, cooling and filtered water to the
company's PTA and PET plants - Indorama Holdings Rotterdam and Indorama
Polymers Rotterdam. The transaction was completed on May 5, 2010. It is
expected to be value accretive to earnings, increase margins, increase book
value per share and will not impact net gearing.
- IVL Board in its meeting no. 4/2010 dated May 12, 2010 approved
expansion of PET production at the site of its existing plant, owned and
operated by its subsidiary Indorama Polymers Rotterdam BV. It will add a new
production line with an annual capacity of PET resin of 190,000 tons thus
bringing the total capacity at the site to 390,000 tons. The expansion is
expected to be completed and start operations by Q1, 2012. The new plant will
generate employment. The proposed expansion is being taken up to increase
market share in Europe,to fully integrate with the PTA capacity of 350,000
tons and utilities at the same location and benefit from economies of scale.
It is expected to be value accretive to earnings and will not have a material
impact on net gearing.
-3-
IVL CONSOLIDATED PERFORMANCE
OPERATIONS
This section presents a summary of the key events observed in 1Q10 at each of
IVL's business groups.
PET business reported sales of Baht 14,258 million representing growth of 19%
over 4Q09 and 42% over 1Q09. The increase in sales from the previous quarter
was from higher average selling price as well as the growth in sales volume.
The sales volume in this quarter increased from the AlphaPet line in operation
and from the conversion of one line at Indorama Polyester Industries (Rayong
facility, Thailand) from polyester fibers to PET. During the quarter, the
facilities ramped-up production volume. The PET business represented 59.2% of
consolidated sales and 55.7% of consolidated EBITDA.
Polyester fibers & Wool yarns business reported sales of Baht 3,454 million,
representing growth of 7% over 4Q09 and 83% over 1Q09. The increase in sales
in 1Q10 compared to 4Q09 was from increase in average selling price of
polyester fibers and wool yarns business and from increase in sales volume. The
Polyester fibers business turned to positive earnings in this quarter on
higher production volume, product-mix and reduction in conversion cost. The
Polyester fibers and Wool yarns business represented 14.3% of consolidated
sales and 14.1% of consolidated EBITDA.
PTA business reported merchant sales (excluding captive sales) for PTA of Baht
6,388 million, representing growth of 12% over 4Q09 and 13% over 1Q09. The
increase in sales is primarily from the increase in sales volume in Asia and
higher average selling prices. 48% of PTA produced was for captive
use in PET and Polyester fibers and yarns business within the group. The PTA
business represented 26.5% of consolidated sales and 30.2% of consolidated
EBITDA.
CONSOLIDATED FINANCIAL RESULTS
Consolidated sales of Baht 24,100 million in 1Q10, increasing 15% from 4Q09
and 37% from 1Q09. These were driven by higher volumes and increases in
average selling price of PET resins, Polyester fibers and Wool yarns and PTA.
However, the strengthening of Thai Baht resulted in lower sales and earnings
from overseas subsidiaries when converting into Thai Baht.
Consolidated EBITDA of Baht 3,010 million in 1Q10 which was 12% higher than
4Q09 and 7% higher than 1Q09. Despite increase in absolute EBITDA, EBITDA
margin decreased slightly from 12.9% in 4Q09 to 12.5% in 1Q10 as a result of
higher average selling prices in all business segments.
IVL posted profit before tax of Baht 1,890 million in 1Q10, increasing 11%
from 4Q09 and 20% from 1Q09, on the back of the stronger sales, higher
integrated margins and lower interest expense in the quarter.
IVL posted net profit after tax and minority interest of Baht 1,583* million,
increasing 15% from 4Q09 and 43% from 1Q09. Minority interest in 1Q10 was
Baht 223 million, mainly comprised of minority shareholders in TPT
Petrochemicals Public Company Limited and Indorama Polymers Public Company
Limited "IRP" up
to the date of acquisition of additional shares. On February 3, 2010, IVL
registered an increase in shareholding in IRP from 69.29% to 99.08% on
completion of a tender offer based on a share swap therefore the minority
interest from earnings in IRP was recorded up to the transaction date.
*including minority interest of Baht 53 million for IRP considering on
completion of tender offer IVL shareholding has increased from 69.29% to
99.08% on February 3, 2010
-4-
CAPITAL EXPENDITURES AND NET DEBT
Total capital expenditure of IVL in 1Q10 of Baht 408 million was primarily for
greenfield project called AlphaPet, USA and expansion in Petform, Thailand.
Major capital expenditures initiated have been completed with the 2nd line
installation near completion in AlphaPet. The total assets at the end of March
31, 2010 were Baht 72,928 million of which net fixed assets are Baht 47,824
million, equivalent to 66% of total assets.
Current ratio improved to 1.04 times at end of March 31, 2010 from 0.91 times
at end of December 31, 2009.
At the end of March 31, 2010, IVL's total net debt stood at Baht 30,908
million, an 18% decrease from the end of 2009. The company reduced short term
loans and repaid long term loans from cash flow from operations and partly
from cash proceeds of initial public offering completed in January, 2010. Net
gearing ratio went down from 63% at end of December 31, 2009 to 53% at the
end of March 31, 2010. The net debt consists of:
Bank overdrafts and short term loans Baht 6,348 million
Current portion of long term loans Baht 4,622 million
Long term loans net of current portion Baht 22,200 million
TOTAL Baht 33,170 million
Less: Cash and cash equivalents Baht 2,262 million
Net debt Baht 30,908 million
-5-
FINANCIAL INFORMATION
- IVL consolidated tables
- Business segment tables
- IVL consolidated balance sheet and statement of income
-6-
EXCHANGE RATE
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Exchange rate: THB/USD
Average rate 32.88 33.31 35.31 -1.3% -6.9%
Closing rate 32.37 33.37 35.48 -3.0% -8.8%
Exchange rate: THB/EUR
Average rate 45.52 49.22 46.02 -7.5% -1.1%
Closing rate 43.41 47.79 46.96 -9.2% -7.6%
IVL CONSOLIDATED
Table 1
IVL : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Total revenues
Baht in millions 24,100 20,922 17,603 15% 37%
USD in millions 733 628 499 17% 47%
Proportion of revenues by geographic
Thailand 14% 16% 16%
Asia(excluding Thailand)25% 24% 22%
North America 18% 14% 16%
Europe 36% 37% 39%
Rest of the World 7% 9% 8%
Table 2
IVL : KEY FINANCIAL PERFORMANCE AND MARGINS
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
EBITDA
Baht in millions 3,010 2,693 2,801 12% 7%
USD in millions 92 81 79 13% 15%
Margin (%) 12.5% 12.9% 15.9%
Profit (loss) before tax
Baht in millions 1,890 1,709 1,575 11% 20%
USD in millions 57 51 45 12% 29%
Margin (%) 7.8% 8.2% 8.9%
Net profit (loss) after tax and minority
Baht in millions *1,583 1,380 1,109 15% 43%
USD in millions 48 41 31 16% 53%
Margin (%) 6.6% 6.6% 6.3%
*including minority interest of Baht 53 million for IRP considering on
completion of tender offer IVL shareholding has increased from 69.29% to
99.08% on February 3, 2010
-7-
Table 3
IVL : CASH FLOW
1Q10 vs.
Baht in millions 1Q10 1Q09 1Q09
EBITDA 3,010 2,801 7%
Net working capital and others (503) 572 -188%
Net financial expenses (407) (872) -53%
Income tax (46) (1) 4500%
Free cash flow before Capex 2,054 2,500 -18%
Capital expenditures (408) (1,187) -66%
Net (acquisitions) disposals of subsidiaries
0 0 n/a
Free cash flow after Capex 1,646 1,313 25%
Dividends (1) 0 n/a
Proceeds from issues of shares 3,856 0 n/a
Changes in net debt (5,501) (1,313) 319%
Note: The consolidated financials are based upon elimination of intra-company
(or intra business segment) transactions reason which the total of each
segment may not tally with consolidated financials.
Table 4
IVL : FINANCIAL RATIOS
1Q10 4Q09 1Q09
Current ratio (times) 1.0 0.9 0.8
Net gearing ratio (%) 53% 63% 68%
* Net operating gearing ratio (%) 51% 61% 66%
Interest coverage ratio (times) 9.3 7.6 6.0
** ROE (%) 30.8% 33.2% 33.6%
*** ROCE (%) 15.7% 13.3% 14.9%
* Based on net operating debt which is net debt less debt for capex and
investments not generating revenue and earnings
** Net profit after minority to average total equity attributable to
shareholders
*** Operating income to average capital employed (net operating debt plus
total shareholder's equity)
-8-
PET
Table 5
PET : CAPACITY AND UTILISATION (%)
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)
316,110 323,134 236,219 -2% 34%
Production volumes (in Tonnes)
297,993 300,843 242,129 -1% 23%
Utilization rate (%) 94% 93% 103%
*Capacity based on available days in the quarter for production. 4Q09 and 1Q10
includes a line switched from Polyester fibers to PET
Table 6
PET : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Total revenues
Baht in millions 14,258 12,018 10,054 19% 42%
USD in millions 434 361 285 20% 52%
Growth in Baht revenues from:
Volume growth 8% 26%
Price movement 14% 16%
Exchange rate movement -4% -3%
Proportion of revenues by geographic
Thailand 6% 7% 5%
Asia (excluding Thailand)
4% 4% 3%
North America 31% 24% 27%
Europe 52% 57% 58%
Rest of the World 7% 8% 7%
Table 7
PET : OPERATING EBITDA AND MARGIN
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Operating EBITDA
Baht in millions 1,677 1,325 1,615 27% 4%
USD in millions 51 40 46 28% 11%
Margin (%) 11.8% 11.0% 16.1%
* Based on pro-rata allocation of earnings of PTA business calculated on
intra-group sales to PET and Polyester fibers
-9-
POLYESTER & WOOL
Table 8
POLYESTER & WOOL : CAPACITY AND UTILIZATION (%)
POLYESTER FIBERS & YARNS 1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)
60,362 61,703 86,992 -2% -31%
** Production volumes (in Tonnes)
68,136 68,295 64,355 0% 6%
Utilization rate (%) 113% 111% 74%
WOOL YARNS 1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)
1,455 1,487 1,455 -2% 0%
** Production volumes (in Tonnes)
1,169 824 754 42% 55%
Utilization rate (%) 80% 55% 52%
*Capacity based on available days in the quarter for production. 4Q09 and 1Q10
excludes a line switched from Polyester fibers to PET
**Production volumes based on equivalent production
Table 9
POLYESTER & WOOL : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Total revenues
Baht in millions 3,454 3,218 1,892 7% 83%
USD in millions 105 97 54 9% 96%
Growth in Baht revenues from:
Volume growth 3% 30%
Price movement 6% 45%
Exchange rate movement -2% -4%
Proportion of revenues by geographic
Thailand 22% 24% 29%
Asia (excluding Thailand)
46% 36% 44%
North America 5% 4% 5%
Europe 16% 22% 9%
Rest of the World 10% 15% 12%
Table 10
POLYESTER & WOOL : OPERATING EBITDA AND MARGIN
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Operating EBITDA
Baht in millions 423 429 270 -1% 57%
USD in millions 13 13 8 0% 68%
Margin (%) 12.3% 13.3% 14.3%
* Based on pro-rata allocation of earnings of PTA business calculated on
intra-group sales to PET and Polyester fibers
- 10 -
PTA
Table 11
PTA : CAPACITY AND UTILISATION (%)
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)392,055 400,767 392,055 -2% 0%
Production volumes (in Tonnes) 393,978 390,138 392,322 1% 0%
Utilisation rate (%) 100% 97% 100%
*Capacity based on available days in the quarter for production.
Table 12
PTA : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
(more)
May 12, 2010
The President
The Stock Exchange of Thailand
Subject: Submission of Reviewed Financial Statements of Indorama Ventures
Public Company for
the 1st quarter of 2010 and the Management's Discussion and Analysis (MD&A)
We are pleased to submit:
1. A copy of the Consolidated and Company only Reviewed Financial Statements
for the 1st quarter of 2010 (a copy in Thai and English)
2. Management's Discussion and Analysis (MD&A) for the 1st quarter of 2010 (a
copy in Thai and English)
3. Company's performance report, Form F45-3 (a copy in Thai and English)
Please be informed Form 45-3 shows consolidated earnings per share for Q1,
2009 of Baht 3.31 per share which is based on par value of Baht 10 per share.
The earnings per share for Q1, 2009 would have been Baht 0.33 per share based
on par value of Baht 1 per share. The par value was split from Baht 10 per
share to Baht 1 per share in year 2009.
Please be informed accordingly.
Sincerely yours,
(Mr. Aloke Lohia)
Group Chief Executive Officer
Company Secretary
Tel: +66 (0) 2661-6661
Fax: +66 (0) 2661-6664
-1-
INDORAMA VENTURES PUBLIC COMPANY LIMITED
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
FOR THE PERIOD OF 1Q 2010 (Consolidated)
IVL 1Q10 HIGHLIGHTS
- Higher sales revenue in all business segments on higher volumes and
higher average selling prices
- Average sales realization in all business segments was higher in 1Q10 in
comparison to 4Q09 and 1Q09 which was in line with higher crude and
petrochemical product prices.
The table below summarizes the average sales realization increase both in
absolute prices in Baht equivalent and exchange adjusted prices:
1Q10 over 4Q09 1Q10 over 1Q09
Movement *Forex Movement *Forex
Business segment in Baht factored in Baht factored
PET 9% 14% 13% 16%
Polyester & Wool 4% 6% 41% 45%
PTA 3% 6% 25% 27%
*Adjusted for movement in forex rates quarter on quarter
- Higher consolidated sales and earnings in 1Q10:
The followings are the consolidated sales and earnings converted
equivalent in USD -
- Net sales for 1Q10 of USD 733 million, a growth of 17% over 4Q09
and 47% over 1Q09
- EBITDA for 1Q10 of USD 92 million, a growth of 13% over 4Q09 and
15% over 1Q09
- Profit before tax for 1Q10 of USD 57 million, a growth of 12% over
4Q09 and 29% over 1Q09
- Net profit after tax and minority interest for 1Q10 of USD 48*
million, a growth of 16% over 4Q09 and 53% over 1Q09
The following are the consolidated sales and earnings as reported in
Thai Baht -
- The results below have been achieved despite the strengthening of
the Thai Baht (an accounting impact only; otherwise the business has a natural
hedge in each region of operations) which resulted in lower earnings from
overseas subsidiaries on translation to Thai Baht at the average foreign
exchange rate for the quarter. The Thai Baht strengthened against the USD by
1.3% in 1Q10 over 4Q09 and by 6.9% in 1Q10 over 1Q09 and the Thai Baht
strengthened against the Euro by 7.5% in 1Q10 over 4Q09 and by 1.1% in 1Q10
over 1Q09
-2-
- Net sales for 1Q10 of Baht 24,100 million, a growth of 15% over 4Q09
and 37% over 1Q09
- EBITDA for 1Q10 of Baht 3,010 million, a growth of 12% over 4Q09 and
7% over 1Q09
- Profit before tax for 1Q10 of Baht 1,890 million, a growth of 11%
over 4Q09 and 20% over 1Q09
- Net profit after tax and minority interest for 1Q10 of Baht 1,583*
million, a growth of 15% over 4Q09 and 43% over 1Q09
*Including minority interest of Baht 53 million for IRP considering
on completion of tender offer IVL shareholding has increased from 69.29% to
99.08% on February 3, 2010
- In 1Q10, despite the increase in absolute prices of crude oil and
petrochemicals, the net margin achieved was 6.6% which is the same as 4Q09 of
6.6% and higher than 1Q09 of 6.3%
- Annualized weighted earnings per share of Baht 1.51 per share and a return
on equity of 30.8% in 1Q10
- In 1Q10, there was an increase in free cash flow before capex and
investments of Baht 2,054 million despite cash outflow for working capital on
higher volumes and higher prices. The free cash flow after capex was Baht
1,646 million
- Net debt reduced by Baht 6,632 million in this quarter, resulting in net
gearing ratio of 53% lower than 63% at the end of 2009
- Announcement of new projects:
- A strategic investment in South Europe to enlarge our presence
across Europe IVL has agreed for a 50% joint venture with PCH Holdings S.R.L.
for acquisition of assets PTA and PET business in Italy from Equipolymers. The
acquisition will comprise PTA capacity of around 190,000 tons, and equivalent
capacity for PET resins. The transaction is expected to be completed in end
May 2010. The transaction is expected to be value accretive to earnings,
increase book value per share and will not impact net gearing.
- Acquisition of the assets of 24MW utility plant co-located at IVL's
site in Rotterdam, the Netherlands. Currently the utility plant supplies
steam, electricity, compressed air, cooling and filtered water to the
company's PTA and PET plants - Indorama Holdings Rotterdam and Indorama
Polymers Rotterdam. The transaction was completed on May 5, 2010. It is
expected to be value accretive to earnings, increase margins, increase book
value per share and will not impact net gearing.
- IVL Board in its meeting no. 4/2010 dated May 12, 2010 approved
expansion of PET production at the site of its existing plant, owned and
operated by its subsidiary Indorama Polymers Rotterdam BV. It will add a new
production line with an annual capacity of PET resin of 190,000 tons thus
bringing the total capacity at the site to 390,000 tons. The expansion is
expected to be completed and start operations by Q1, 2012. The new plant will
generate employment. The proposed expansion is being taken up to increase
market share in Europe,to fully integrate with the PTA capacity of 350,000
tons and utilities at the same location and benefit from economies of scale.
It is expected to be value accretive to earnings and will not have a material
impact on net gearing.
-3-
IVL CONSOLIDATED PERFORMANCE
OPERATIONS
This section presents a summary of the key events observed in 1Q10 at each of
IVL's business groups.
PET business reported sales of Baht 14,258 million representing growth of 19%
over 4Q09 and 42% over 1Q09. The increase in sales from the previous quarter
was from higher average selling price as well as the growth in sales volume.
The sales volume in this quarter increased from the AlphaPet line in operation
and from the conversion of one line at Indorama Polyester Industries (Rayong
facility, Thailand) from polyester fibers to PET. During the quarter, the
facilities ramped-up production volume. The PET business represented 59.2% of
consolidated sales and 55.7% of consolidated EBITDA.
Polyester fibers & Wool yarns business reported sales of Baht 3,454 million,
representing growth of 7% over 4Q09 and 83% over 1Q09. The increase in sales
in 1Q10 compared to 4Q09 was from increase in average selling price of
polyester fibers and wool yarns business and from increase in sales volume. The
Polyester fibers business turned to positive earnings in this quarter on
higher production volume, product-mix and reduction in conversion cost. The
Polyester fibers and Wool yarns business represented 14.3% of consolidated
sales and 14.1% of consolidated EBITDA.
PTA business reported merchant sales (excluding captive sales) for PTA of Baht
6,388 million, representing growth of 12% over 4Q09 and 13% over 1Q09. The
increase in sales is primarily from the increase in sales volume in Asia and
higher average selling prices. 48% of PTA produced was for captive
use in PET and Polyester fibers and yarns business within the group. The PTA
business represented 26.5% of consolidated sales and 30.2% of consolidated
EBITDA.
CONSOLIDATED FINANCIAL RESULTS
Consolidated sales of Baht 24,100 million in 1Q10, increasing 15% from 4Q09
and 37% from 1Q09. These were driven by higher volumes and increases in
average selling price of PET resins, Polyester fibers and Wool yarns and PTA.
However, the strengthening of Thai Baht resulted in lower sales and earnings
from overseas subsidiaries when converting into Thai Baht.
Consolidated EBITDA of Baht 3,010 million in 1Q10 which was 12% higher than
4Q09 and 7% higher than 1Q09. Despite increase in absolute EBITDA, EBITDA
margin decreased slightly from 12.9% in 4Q09 to 12.5% in 1Q10 as a result of
higher average selling prices in all business segments.
IVL posted profit before tax of Baht 1,890 million in 1Q10, increasing 11%
from 4Q09 and 20% from 1Q09, on the back of the stronger sales, higher
integrated margins and lower interest expense in the quarter.
IVL posted net profit after tax and minority interest of Baht 1,583* million,
increasing 15% from 4Q09 and 43% from 1Q09. Minority interest in 1Q10 was
Baht 223 million, mainly comprised of minority shareholders in TPT
Petrochemicals Public Company Limited and Indorama Polymers Public Company
Limited "IRP" up
to the date of acquisition of additional shares. On February 3, 2010, IVL
registered an increase in shareholding in IRP from 69.29% to 99.08% on
completion of a tender offer based on a share swap therefore the minority
interest from earnings in IRP was recorded up to the transaction date.
*including minority interest of Baht 53 million for IRP considering on
completion of tender offer IVL shareholding has increased from 69.29% to
99.08% on February 3, 2010
-4-
CAPITAL EXPENDITURES AND NET DEBT
Total capital expenditure of IVL in 1Q10 of Baht 408 million was primarily for
greenfield project called AlphaPet, USA and expansion in Petform, Thailand.
Major capital expenditures initiated have been completed with the 2nd line
installation near completion in AlphaPet. The total assets at the end of March
31, 2010 were Baht 72,928 million of which net fixed assets are Baht 47,824
million, equivalent to 66% of total assets.
Current ratio improved to 1.04 times at end of March 31, 2010 from 0.91 times
at end of December 31, 2009.
At the end of March 31, 2010, IVL's total net debt stood at Baht 30,908
million, an 18% decrease from the end of 2009. The company reduced short term
loans and repaid long term loans from cash flow from operations and partly
from cash proceeds of initial public offering completed in January, 2010. Net
gearing ratio went down from 63% at end of December 31, 2009 to 53% at the
end of March 31, 2010. The net debt consists of:
Bank overdrafts and short term loans Baht 6,348 million
Current portion of long term loans Baht 4,622 million
Long term loans net of current portion Baht 22,200 million
TOTAL Baht 33,170 million
Less: Cash and cash equivalents Baht 2,262 million
Net debt Baht 30,908 million
-5-
FINANCIAL INFORMATION
- IVL consolidated tables
- Business segment tables
- IVL consolidated balance sheet and statement of income
-6-
EXCHANGE RATE
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Exchange rate: THB/USD
Average rate 32.88 33.31 35.31 -1.3% -6.9%
Closing rate 32.37 33.37 35.48 -3.0% -8.8%
Exchange rate: THB/EUR
Average rate 45.52 49.22 46.02 -7.5% -1.1%
Closing rate 43.41 47.79 46.96 -9.2% -7.6%
IVL CONSOLIDATED
Table 1
IVL : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Total revenues
Baht in millions 24,100 20,922 17,603 15% 37%
USD in millions 733 628 499 17% 47%
Proportion of revenues by geographic
Thailand 14% 16% 16%
Asia(excluding Thailand)25% 24% 22%
North America 18% 14% 16%
Europe 36% 37% 39%
Rest of the World 7% 9% 8%
Table 2
IVL : KEY FINANCIAL PERFORMANCE AND MARGINS
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
EBITDA
Baht in millions 3,010 2,693 2,801 12% 7%
USD in millions 92 81 79 13% 15%
Margin (%) 12.5% 12.9% 15.9%
Profit (loss) before tax
Baht in millions 1,890 1,709 1,575 11% 20%
USD in millions 57 51 45 12% 29%
Margin (%) 7.8% 8.2% 8.9%
Net profit (loss) after tax and minority
Baht in millions *1,583 1,380 1,109 15% 43%
USD in millions 48 41 31 16% 53%
Margin (%) 6.6% 6.6% 6.3%
*including minority interest of Baht 53 million for IRP considering on
completion of tender offer IVL shareholding has increased from 69.29% to
99.08% on February 3, 2010
-7-
Table 3
IVL : CASH FLOW
1Q10 vs.
Baht in millions 1Q10 1Q09 1Q09
EBITDA 3,010 2,801 7%
Net working capital and others (503) 572 -188%
Net financial expenses (407) (872) -53%
Income tax (46) (1) 4500%
Free cash flow before Capex 2,054 2,500 -18%
Capital expenditures (408) (1,187) -66%
Net (acquisitions) disposals of subsidiaries
0 0 n/a
Free cash flow after Capex 1,646 1,313 25%
Dividends (1) 0 n/a
Proceeds from issues of shares 3,856 0 n/a
Changes in net debt (5,501) (1,313) 319%
Note: The consolidated financials are based upon elimination of intra-company
(or intra business segment) transactions reason which the total of each
segment may not tally with consolidated financials.
Table 4
IVL : FINANCIAL RATIOS
1Q10 4Q09 1Q09
Current ratio (times) 1.0 0.9 0.8
Net gearing ratio (%) 53% 63% 68%
* Net operating gearing ratio (%) 51% 61% 66%
Interest coverage ratio (times) 9.3 7.6 6.0
** ROE (%) 30.8% 33.2% 33.6%
*** ROCE (%) 15.7% 13.3% 14.9%
* Based on net operating debt which is net debt less debt for capex and
investments not generating revenue and earnings
** Net profit after minority to average total equity attributable to
shareholders
*** Operating income to average capital employed (net operating debt plus
total shareholder's equity)
-8-
PET
Table 5
PET : CAPACITY AND UTILISATION (%)
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)
316,110 323,134 236,219 -2% 34%
Production volumes (in Tonnes)
297,993 300,843 242,129 -1% 23%
Utilization rate (%) 94% 93% 103%
*Capacity based on available days in the quarter for production. 4Q09 and 1Q10
includes a line switched from Polyester fibers to PET
Table 6
PET : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Total revenues
Baht in millions 14,258 12,018 10,054 19% 42%
USD in millions 434 361 285 20% 52%
Growth in Baht revenues from:
Volume growth 8% 26%
Price movement 14% 16%
Exchange rate movement -4% -3%
Proportion of revenues by geographic
Thailand 6% 7% 5%
Asia (excluding Thailand)
4% 4% 3%
North America 31% 24% 27%
Europe 52% 57% 58%
Rest of the World 7% 8% 7%
Table 7
PET : OPERATING EBITDA AND MARGIN
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Operating EBITDA
Baht in millions 1,677 1,325 1,615 27% 4%
USD in millions 51 40 46 28% 11%
Margin (%) 11.8% 11.0% 16.1%
* Based on pro-rata allocation of earnings of PTA business calculated on
intra-group sales to PET and Polyester fibers
-9-
POLYESTER & WOOL
Table 8
POLYESTER & WOOL : CAPACITY AND UTILIZATION (%)
POLYESTER FIBERS & YARNS 1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)
60,362 61,703 86,992 -2% -31%
** Production volumes (in Tonnes)
68,136 68,295 64,355 0% 6%
Utilization rate (%) 113% 111% 74%
WOOL YARNS 1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)
1,455 1,487 1,455 -2% 0%
** Production volumes (in Tonnes)
1,169 824 754 42% 55%
Utilization rate (%) 80% 55% 52%
*Capacity based on available days in the quarter for production. 4Q09 and 1Q10
excludes a line switched from Polyester fibers to PET
**Production volumes based on equivalent production
Table 9
POLYESTER & WOOL : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
Total revenues
Baht in millions 3,454 3,218 1,892 7% 83%
USD in millions 105 97 54 9% 96%
Growth in Baht revenues from:
Volume growth 3% 30%
Price movement 6% 45%
Exchange rate movement -2% -4%
Proportion of revenues by geographic
Thailand 22% 24% 29%
Asia (excluding Thailand)
46% 36% 44%
North America 5% 4% 5%
Europe 16% 22% 9%
Rest of the World 10% 15% 12%
Table 10
POLYESTER & WOOL : OPERATING EBITDA AND MARGIN
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Operating EBITDA
Baht in millions 423 429 270 -1% 57%
USD in millions 13 13 8 0% 68%
Margin (%) 12.3% 13.3% 14.3%
* Based on pro-rata allocation of earnings of PTA business calculated on
intra-group sales to PET and Polyester fibers
- 10 -
PTA
Table 11
PTA : CAPACITY AND UTILISATION (%)
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
*Production capacity (in Tonnes)392,055 400,767 392,055 -2% 0%
Production volumes (in Tonnes) 393,978 390,138 392,322 1% 0%
Utilisation rate (%) 100% 97% 100%
*Capacity based on available days in the quarter for production.
Table 12
PTA : REVENUES
1Q10 vs.
1Q10 4Q09 1Q09 4Q09 1Q09
(more)