) The Management's Discussion and Analysis for the 1st quarter of 2011

PET Table 3 PET : CAPACITY AND UTILISATION (%) 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Production capacity (in Tonnes) 502,449 374,856 316,110 34% 59% Production volumes (in Tonnes) 464,553 342,930 297,993 35% 56% Utilisation rate (%) 92% 91% 94% *Capacity based on available days in the quarter for production. Table 4 PET : REVENUES 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 Total revenues Baht in millions 26,547 14,495 14,258 83% 86% USD in millions 869 483 434 80% 100% Growth in Baht revenues from: Volume growth 44% 48% Price movement 25% 33% Exchange rate movement 2% -7% Proportion of revenues by geographic Thailand 5% 7% 6% Asia (excluding Thailand) 9% 4% 7% North America 46% 34% 30% Europe 38% 46% 50% Rest of the World 3% 8% 7% Table 5 PET : OPERATING EBITDA AND MARGIN 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Operating EBITDA Baht in millions 3,576 2,088 1,677 71% 113% USD in millions 117 70 51 68% 130% Margin (%) 13.5% 14.4% 11.8% * Based on pro-rata allocation of earnings of PTA business calculated on intra-group sales to PET and Polyester fibers POLYESTER & WOOL Table 6 POLYESTER & WOOL : CAPACITY AND UTILIZATION (%) POLYESTER FIBERS & YARNS 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Production capacity (in Tonnes) 89,765 70,777 60,362 27% 49% **Production volumes (in Tonnes) 92,515 74,225 68,136 25% 36% Utilisation rate (%) 103% 105% 113% WOOL YARNS 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Production capacity (in Tonnes) 1,455 1,487 1,455 -2% 0% **Production volumes (in Tonnes) 1,384 1,424 1,169 -3% 18% Utilisation rate (%) 95% 96% 80% *Capacity based on available days in the quarter for production. **Production volumes based on equivalent production Table 7 POLYESTER & WOOL : REVENUES 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 Total revenues Baht in millions 5,776 3,610 3,454 60% 67% USD in millions 189 120 105 57% 80% Growth in Baht revenues from: Volume growth 30% 33% Price movement 21% 32% Exchange rate movement 2% -6% Proportion of revenues by geographic Thailand 21% 23% 24% Asia (excluding Thailand) 40% 51% 40% North America 9% 5% 6% Europe 15% 16% 19% Rest of the World 15% 5% 12% Table 8 POLYESTER & WOOL : OPERATING EBITDA AND MARGIN 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Operating EBITDA Baht in millions 1,467 810 423 81% 246% USD in millions 48 27 13 78% 273% Margin (%) 25.4% 22.4% 12.3% * Based on pro-rata allocation of earnings of PTA business calculated on intra-group sales to PET and Polyester fibers PTA Table 9 PTA : CAPACITY AND UTILISATION (%) 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Production capacity (in Tonnes) 392,055 400,767 392,055 -2% 0% Production volumes (in Tonnes) 395,484 407,405 393,978 -3% 0% Utilisation rate (%) 101% 102% 100% *Capacity based on available days in the quarter for production. Table 10 PTA : REVENUES 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 Total revenues Baht in millions 17,240 13,571 12,239 27% 41% USD in millions 564 453 372 25% 52% Growth in Baht revenues from: Volume growth -3% 2% Price movement 29% 42% Exchange rate movement 1% -4% Sales to PET business Baht in millions 5,543 4,750 4,267 17% 30% USD in millions 181 156 140 17% 30% Sales to Polyester business Baht in millions 3,466 1,806 1,583 92% 119% USD in millions 113 59 52 92% 119% Total revenues after eliminations Baht in millions 8,230 7,015 6,388 17% 29% USD in millions 269 234 194 15% 39% PTA integration ratio (%) 52% 48% 48% 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 Proportion of revenues (after eliminations) by geographic Thailand 22% 23% 27% Asia (excluding Thailand) 65% 68% 55% North America 0% 0% 0% Europe 4% 5% 15% Rest of the World 9% 4% 4% Table 11 PTA : OPERATING EBITDA AND MARGIN 1Q11 vs. 1Q11 4Q10 1Q10 4Q10 1Q10 *Operating EBITDA Baht in millions 1,669 1,354 941 23% 77% USD in millions 55 45 29 21% 91% Margin (%) 20.3% 19.3% 14.7% * Based on pro-rata allocation of earnings of PTA business calculated on intra-group sales to PET and Polyester fibers IVL CONSOLIDATED STATEMENT OF INCOME 1Q11 vs. Baht in millions 1Q11 4Q10 1Q10 4Q10 1Q10 Net sales 40,553 25,119 24,100 61% 68% *Cost of sales 33,390 20,643 20,844 62% 60% Gross profit 7,163 4,476 3,256 60% 120% *Selling and administrative expenses 1,827 1,300 1,406 41% 30% Other income (expense), net 144 (14) 36 -1129% 300% Foreign exchange gain (loss) (16) 184 326 -109% -105% EBITDA 6,554 4,234 3,009 55% 118% Depreciation and amortization 1,090 888 797 23% 37% Operating income 5,464 3,346 2,212 63% 147% Share of equity income from joint venture 83 0 0 n/a n/a **Extraordinary items 6,199 1,152 0 438% n/a Interest income 36 2 1 1700% 3500% Interest expense 436 354 327 23% 33% Profit (loss) before tax 11,346 4,146 1,886 174% 502% Income tax expense 231 117 137 97% 69% Profit (loss) for the period 11,115 4,029 1,749 176% 536% Minority interest 58 21 222 176% -74% Net profit after minority interest 11,057 4,008 1,527 176% 624% Weighted average no. of shares (in Million) 4,505 4,334 3,952 Weighted earnings per share (in Baht) 2.45 0.92 0.39 165% 534% *Includes depreciation and amortization expenses **Includes gain on bargain purchase on new acquisitions and their related transaction costs Note: The consolidated financials are based upon elimination of intra-company (or intra business segment) transactions. For this reason the total of each segment may not tally with consolidated financials. IVL CONSOLIDATED BALANCE SHEET Mar-11 vs. Baht in millions Mar-11 Dec-10 Mar-10 Dec-10 Mar-10 Assets Cash and current investments 23,784 2,024 2,262 1075% 951% Trade accounts receivable 28,515 11,771 11,334 142% 152% Inventories 17,920 11,384 9,082 57% 97% Other current assets 3,400 965 1,308 252% 160% Total current assets 73,619 26,144 23,986 182% 207% Investment 2,246 2,013 0 12% n/a Property, plant and equipment 66,255 48,820 47,824 36% 39% Intangible assets 4,830 760 817 536% 491% Other assets 263 203 301 30% -13% Total assets 147,213 77,940 72,928 89% 102% Liabilities Bank OD and short-term loans from financial institutions 9,332 5,365 6,348 74% 47% Trade accounts payable 23,202 10,858 9,741 114% 138% Current portion of long-term loans 6,969 5,913 4,596 18% 52% Current portion of finance lease liabilities 20 22 26 -9% -23% Other current liabilities 4,483 1,880 2,342 138% 91% Total current liabilities 44,006 24,038 23,053 83% 91% Long-term loans from financial institutions 40,385 20,710 22,126 95% 83% Finance lease liabilities 54 58 74 -7% -27% Other liabilities 1,498 1,014 569 48% 163% Total liabilities 85,943 45,820 45,822 88% 88% Shareholder's equity Share capital 4,814 4,334 4,334 11% 11% Share premium 29,775 13,031 13,031 128% 128% Retained earnings 29,439 18,638 11,551 58% 155% Reserves (3,152) (4,206) (4,950) -25% -36% Total equity attributable to shareholders 60,876 31,797 23,966 91% 154% Minority interest 394 323 3,140 22% -87% Total shareholder's equity 61,270 32,120 27,106 91% 126% Total liabilities and shareholder's equity 147,213 77,940 72,928 89% 102% Note: The consolidated financials are based upon elimination of intra-company (or intra business segment) transactions. For this reason the total of each segment may not tally with consolidated financials. ______________________________________________________________________