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of US$ 35 million (Baht 1,046 million) of which US$ 1 million (Baht 23 million) went towards transaction expenses incurred on acquisitions completed during 1Q 2011, and US$ 34 (Baht 1,023 million) towards inventory loss. Core EBITDA is after excluding inventory gains/losses from reported EBITDA. Inventory gains/losses in a period result from the movement in prices of raw materials and products from the end of the last reported period to the end of the current reported period. The cost of sales are impacted by inventory gains/losses wherein inventory gains decreas cost of sales and inventory losses increas cost of sales. Core ROCE and Core EPS have been calculated by taking book ROCE & book EPS and normalizing them by reducing/adding back extraordinary items as explained above. Net operating debt is defined as Net debt (Total debt minus cash and cash under management) minus the project spending for various Brownfield expansions underway which are not completed and have not yet started contributing to the earnings of IVL. Forward-Looking Statements: This earnings release includes forward-looking statements concerning current expectations for demand for the company's products, implementation and impact of previously announced growth initiatives, Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. The Polyester Chain businesses are generally traded in US dollars and therefore IVL believes in helping its reader with translated US Dollar figures. IVL reporting currency is in Thai Baht and the accompanying pages are an integral part of this report. The accompanying pages report the Reviewed Thai Baht results and its translation in US Dollars at average exchange rates and closing exchange rates where applicable. Readers should rely on the Thai Baht results only. IVL CONSOLIDATED RESULTS Financial Status and Ratios IVL net operating debt to equity is 1.1 times in 2Q 2012 [post acquisition of Indorama Ventures (Oxide and Glycols) Limited in April 2012], which is higher than 0.6 times at the end of year 2011. In 2Q 2012 IVL spent total capex and investment of US$ 848 million, primarily for the acquisitions of Indorama Ventures (Oxide & Glycols) in North America and ongoing brownfield expansions. The capex and investments have been funded with a mix of long term loans, cash proceeds from debentures issue and cash flow from operations. IVL net operating debt increased from US$ 1,166 million at end of December 31, 2011 to US$ 2,111 million at the end of June 30, 2012. The table below provides movement of total debt and net operating debt in US$ millions: 2Q12 4Q11 2Q11 Bank overdraft and short-term loans 457 432 339 % of Total Debt 17% 22% 18% Long term debt (Current-portion) 195 204 168 % of Total Debt 7% 11% 9% Long term debt (Non current-portion) 1,529 1,064 1,331 % of Total Debt 56% 55% 72% Debentures (Non current-portion) 529 236 - % of Total Debt 20% 12% - Total Debt 2,711 1,936 1,838 Cash & Cash under management 264 559 670 Cash and cash equivalents 178 379 170 Current investments 86 179 500 Net Debt 2,446 1,377 1,168 Non Operating Debt (Project Debt) 336 211 29 Net Operating Debt 2,111 1,166 1,139 Financial Ratios Interest Coverage (times) 3.8 2.7 9.3 Net operating debt to equity (times) 1.1 0.6 0.6 Total Debt to Equity (times) 1.5 1.0 0.9 The Net Operating Gearing ratio increased to 53% as at June 30, 2012, from 39% at the end of year 2011. The ROCE achieved in 2Q 2012 is 5% comparing with 7% in 1Q 2012. Excluding the extraordinary gain/loss, Core ROCE for 2Q 2012 would be 11% comparing with 5% in 1Q 2012 on the same basis. The current ratio is 1.4 times as at June 30, 2012 which is less than 1.6 times at the end of year 2011. As at June 30, 2012, IVL has high liquidity of around US$ 917 million with unutilized credit facilities of around US$ 653 million and cash and cash under management of US$ 264 million. The table below provides repayment schedule of long-term debt and debentures in US$ million; Year *Repayment of long-term debt (Post new refinancing plan) Repayment of long-term debt (as of now) Repayment of debentures 2012 195 195 - 2013 312 771 - 2014 324 267 - 2015 327 247 - 2016 278 190 216 2017 or later 288 55 313 Total 1,724 1,724 529 * IVL is in the process of refinancing a project loan amounting to about US$ 450 million, which was taken as a bridge loan to support an acquisition. The above repayment periods have been considered based on proposed new refinancing plan of this loan under consideration. Cash Flow IVL generated US$ 133 million of cash flow from operation, a decrease from US$ 189 million generated in 6M 2011 driving mainly by lower PTA margin. In 6M 2012 there was net cash outflow for capex and investments of US$ 1,115 million, of which US$ 795 million towards acquisition of Old World Industry, US$ 185 million towards acquisition of FiberVisions and the rest mainly towards Rotterdam PET expansion, China PET expansion, the conversion of DMT to PTA in Auriga US, and TPT due to maintenance work. The capex and investments have been funded by the mix of long term loans, cash proceeds from debentures issue and cash flow from operations. The consolidated cash and cash equivalents as on June 30, 2012 are US$ 264 million (Baht 8,415 million) ensuring a healthy financial position and high liquidity in the group. Issuance and offering of Thai Baht Debentures The extraordinary general meeting of shareholders held on 22 September 2011 approved the issue of debentures up to an amount not exceeding Baht 25,000 million (in Baht or equivalent foreign currency) for a maturity not exceeding 15 years. On 19 October 2011, the Company raised Baht 7,500 million in cash through the issue of unsubordinated and unsecured Baht debentures to the public. The debentures issued are for Baht 2,900 million with a maturity of 5 years, Baht 1,400 million with a maturity of 7 years, and Baht 3,200 million with a maturity of 10 years. The details of issue are; 5 Year Tranche Baht 2,900 million Coupon 4.70% 7 Year Tranche Baht 1,400 million Coupon 5.04% 10 year tranche Baht 3,200 million Coupon 5.35% On 9 April 2012, IVL successfully completed the second issuance of debenture. The Company raised in cash Baht 9,400 million through the debenture for Bath 4,000 million with a maturity of 5 years, Baht 1,500 million with a maturity of 7 years, and Baht 3,900 million with a maturity of 10 years. The details of issue are; 5 Year Tranche Baht 1,500 million Coupon 4.45% in Year 1-2 and 5.20% in Year 4-5 5 Year Tranche Baht 2,500 million Coupon 4.73% 7 Year Tranche Baht 1,500 million Coupon 5.09% 10 year tranche Baht 1,250 million Coupon 5.10% in Year 1-3, 5.60% in Year 4-7, 6.0% in Year 8-10 10 year tranche Baht 2,650 million Coupon 5.52% The issue has achieved its objectives of accessing the Thai bond market, increasing the average maturity of debt, locking-in fixed interest rates for the long term, refinancing existing high cost debt and adding liquidity for planned capex and investments. The company's rating on the issue has a rating of A+ by the Thai Rating Information Service (TRIS) in Thailand. Table 1 IVL: KEY OPERATING DATA 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 *Total capacity (in Tonnes) 1,555,159 1,421,415 1,321,715 9% 18% 2,976,574 2,369,967 26% PET resins 773,501 773,500 763,690 0% 1% 1,547,001 1,290,641 20% Polyester & wool 210,071 210,071 121,771 0% 73% 420,142 211,612 99% Feedstock 571,587 437,844 436,254 31% 31% 1,009,431 867,714 16% **Total production (in Tonnes) 1,346,026 1,187,347 1,141,330 13% 18% 2,533,373 2,095,125 21% PET resins 631,123 615,803 619,473 2% 2% 1,246,926 1,083,885 15% Polyester & wool 189,079 194,718 100,953 -3% 87% 383,797 194,852 97% Feedstock 525,824 376,826 420,905 40% 25% 902,650 816,389 11% Combined operating rate (%) 87% 84% 86% 4% 0% 85% 88% -4% Core EBITDA/ton (USD) 112 71 159 59% -29% 93 162 -100% Consolidated EBITDA/ton (USD) 78 82 129 -6% -40% 80 173 -100% *Capacity based on available days in the quarter for production excluding J/V capacity **Production volumes based on equivalent production Table 2 IVL: CASH FLOW 6M12 vs. Baht in millions 6M12 6M11 6M11 Profit for the period 3,018 13,599 -78% Adjustments for non-cash items: Depreciation and amortization 3,041 2,382 28% Gains on bargain purchases (687) (6,619) -90% Others adjustments (equity income etc.) 2,040 1,475 38% Total 7,412 10,837 -32% Changes in operating assets and liabilities (3,255) (5,076) -36% Cash flow from operation 4,157 5,761 -28% Interest received 254 117 117% Capital expenditures (5,216) (2,292) 128% Net cash outflow on acquisition and investments (29,516) (21,470) 37% Other investing activities 60 37 62% Cash flow from investment (34,418) (23,608) 46% Interest paid (1,481) (1,128) 31% Dividend paid (2,415) (3,197) -24% Change in debt 24,575 23,414 5% Proceeds from issue of shares, net - 17,224 -100% Cash flow from financing 20,679 36,313 -43% Effect of exchange rate changes 290 105 176% Net change in cash and current investments (9,292) 18,571 -150% Table 3 IVL: FINANCIAL RATIOS 2Q12 1Q12 2Q11 Current ratio (times) 1.4 1.4 1.7 Net gearing ratio (%) 57% 45% 37% * Net operating gearing ratio (%) 53% 40% 36% Interest coverage ratio (times) 3.8 5.3 9.3 ** ROE (%) 8% 11% 16% *** ROCE (%) 5% 7% 14% *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) PET SEGMENT PET sales revenue in dollar terms in 2Q 2012 decreased by 2% over 1Q 2012 and 8% over 2Q 2011 due to lower prices led by a sharp drop in the crude oil price. In 2Q 2012, PET demand remains subdued globally, and has recently shown the sign of improvement around the end of quarter. The partial start up of IRP Lopburi plant which has been shutdown since September 2011, contributed to the growth in volume by 2% over 1Q 2012, and the slight improvement in utilization rate to 82%. The segment achieved core EBITDA of US$ 69 million, a 31% increase from 1Q 2012 from slight improvement in spread globally. Certain operational improvement measures, the debottlenecking of several plants especially China, and Lopburi where startup is expected to help strengthen PET revenues and earnings starting 3Q 2012 and fully in 2013. Table 4 PET: CAPACITY AND UTILISATION (%) 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Production capacity (in Tonnes) 773,501 773,500 763,690 0% 1% 1,547,001 1,290,641 20% Production volumes (in Tonnes) 631,123 615,803 619,473 2% 2% 1,246,926 1,083,885 15% Utilization rate (%) 82% 80% 81% 81% 84% Table 5 PET: SALES REVENUE 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Total revenues Baht in millions 34,600 34,776 36,316 -1% -5% 69,376 62,863 10% USD in millions 1,105 1,122 1,199 -2% -8% 2,227 2,066 8% Growth in Baht revenues from: Volume growth 2% 5% 18% Price movement -3% -9% -6% Exchange rate movement 0% 0% 0% Proportion of revenues by geographic Thailand 3% 2% 4% 3% 4% Asia (excluding Thailand) 13% 10% 9% 12% 9% North America 44% 49% 42% 46% 43% Europe 29% 30% 31% 30% 34% Rest of the World 10% 8% 15% 9% 10% Table 6 PET: EBITDA 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Core EBITDA Baht in millions 2,154 1,634 3,853 32% -44% 3,788 6,419 -41% USD in millions 69 53 127 31% -46% 122 211 -42% Operating EBITDA Baht in millions 1,398 1,820 2,569 -23% -46% 3,217 5,021 -36% USD in millions 45 59 85 -24% -47% 103 165 -37% POLYESTER & WOOL SEGMENT The segment achieved core EBITDA of US$ 27 million in 2Q 2012, an increase of 57% over 1Q 2012. Despite a slight decrease in sales volume, the polyester segment benefits from spread improvement mainly due to high margin from value added products of FiberVisions which is acquired in early January 2012. Certain operational improvement projects in the USA and Indonesia, and ramping up synergies with FiberVisions, all of which are expected to start delivering value in the second half of the year. The Wool segment in Lopburi is scheduled to start up partially in 3Q 2012 and is expected to be fully operating by the end of 2012. Table 7 POLYESTER & WOOL: CAPACITY AND UTILIZATION (%) POLYESTER FIBERS & YARNS 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Production capacity (in Tonnes) 208,604 208,604 120,300 0% 73% 417,208 208,686 100% * Production volumes (in Tonnes) 189,079 194,718 99,617 -3% 90% 383,797 192,132 100% Utilization rate (%) 91% 93% 83% 92% 92% WOOL YARNS 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Production capacity (in Tonnes) 1,467 1,467 1,471 0% 0% 2,934 2,926 0% * Production volumes (in Tonnes) 0 0 1,336 0% -100% 0 2,720 -100% Utilization rate (%) 0% 0% 91% 0% 93% **Production volumes based on equivalent production Table 8 POLYESTER & WOOL: SALES REVENUE 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Total revenues Baht in millions 10,227 10,813 6,407 -5% 60% 21,040 12,183 73% USD in millions 327 349 212 -6% 54% 676 400 69% Growth in Baht revenues from: Volume growth -8% 92% 96% Price movement 2% -17% -12% Exchange rate movement 0% 0% 0% Proportion of revenues by geographic Thailand 10% 10% 16% 10% 18% Asia (excluding Thailand) 26% 26% 41% 26% 41% North America 30% 27% 22% 28% 16% Europe 28% 28% 14% 28% 14% Rest of the World 6% 9% 8% 8% 11% Table 9 POLYESTER & WOOL: EBITDA 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Core EBITDA Baht in millions 836 527 908 59% -8% 1,363 2,069 -34% USD in millions 27 17 30 57% -11% 44 68 -36% Operating EBITDA Baht in millions 511 607 711 -16% -28% 1,118 1,475 -24% USD in millions 16 20 23 -17% -31% 36 48 -26% FEEDSTOCK SEGMENT The acquisition of the Oxide & Glycols business in North America has started delivering earnings to IVL in this quarter. The Feedstock segment reported revenue of US$ 576 million, an increase by 23% over 1Q 2012 and 6% over 2Q 2011. The segment achieved core EBITDA of US$ 53 million. The growth in North America EO/EG (MEG, DEG, and TEG) has led to high overall utilization rate of 92% and good margins in our Oxide & Glycols business. The available merchant supply of ethylene through network of pipelines and advantaged feedstock source based on natural gas and shale gas creates a positive outlook for at least the next 2-3 years in North America, according to research by industry experts. The PTA margins in Asia continued to be extremely weak in 2Q 2012, driven by an oversupply outlook for PTA in Asia. The utilization rate of the PTA segment increased after the 22 days shutdown of our TPT plant for schedule maintenance and to complete several capex job that are intended to lower total cost of production in 1Q 2012. Feedstock integration with the inclusion of the Oxide & Glycols business allows us to continue to operate at high utilization rates, while other PTA players operating with cash loss will not be able to sustain in the long-term. Table 10 FEEDSTOCK: CAPACITY AND UTILISATION (%) 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Production capacity (in Tonnes) 571,587 437,844 436,254 31% 31% 1,009,431 867,714 16% Production volumes (in Tonnes) 525,824 376,826 420,905 40% 25% 902,650 816,389 11% Utilization rate (%) 92% 86% 96% 89% 94% * Glycols & Oxide capacity is taken at 550kt pa, based on Glycols equivalent derived capacity from Ethylene Feed. Table 11 FEEDSTOCK: SALES REVENUE 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Total revenues Baht in millions 18,022 14,524 16,525 24% 9% 32,546 33,765 -4% USD in millions 576 469 546 23% 6% 1,045 1,110 -6% Growth in Baht revenues from: Volume growth 27% 18% 8% Price movement -2% -4% -11% Exchange rate movement 0% -4% 0% Proportion of revenues (after eliminations) by geographic Thailand 16% 24% 19% 19% 21% Asia (excluding Thailand) 35% 68% 62% 49% 63% North America 40% 0% 0% 23% 0% Europe 10% 8% 17% 9% 11% Rest of the World 0% 0% 2% 0% 5% Table 12 FEEDSTOCK: EBITDA 2Q12 vs. 6M12 vs. 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Core EBITDA Baht in millions 1,647 318 816 418% 102% 1,965 2,099 -6% USD in millions 53 10 27 414% 95% 63 69 -9% Operating EBITDA Baht in millions 1,287 492 1,251 161% 3% 1,780 4,748 -63% USD in millions 41 16 41 159% 0% 57 156 -63% IVL CONSOLIDATED STATEMENT OF INCOME 2Q12 vs. 6M12 vs. Baht in millions 2Q12 1Q12 2Q11 1Q12 2Q11 6M12 6M11 6M11 Net sales 54,495 52,551 51,300 4% 6% 107,046 91,853 17% Other income (expense), net 243 87 468 179% -48% 330 612 -46% Total Revenue 54,738 52,638 51,768 4% 6% 107,376 92,465 16% *Cost of sales 50,289 48,274 45,985 4% 9% 98,563 79,375 24% Gross profit 4,449 4,364 5,783 2% -23% 8,813 13,090 -33% *Selling and administrative expenses 2,957 2,807 2,713 5% 9% 5,764 4,540 27% Foreign exchange gain (loss) 53 163 91 -67% -42% 216 75 188% EBITDA 3,271 3,035 4,453 8% -27% 6,306 11,007 -43% Depreciation and amortization 1,726 1,315 1,292 31% 34% 3,041 2,382 28% Operating income 1,545 1,720 3,161 -10% -51% 3,265 8,625 -62% Share of profit from joint ventures (291) (78) (8) 273% 3538% (369) 75 -592% **Extraordinary items 1,086 733 (23) 48% -4821% 1,819 6,272 -71% Interest income 147 95 171 55% -14% 242 207 17% Interest expense 998 664 649 50% 54% 1,662 1,085 53% Profit (loss) before tax 1,489 1,806 2,652 -18% -44% 3,295 14,094 -77% Income tax expense 153 124 264 23% -42% 277 495 -44% Profit (loss) for the period 1,336 1,682 2,388 -21% -44% 3,018 13,599 -78% Minority interest 110 (9) 22 -1322% 400% 101 79 28% Net profit after minority interest 1,226 1,691 2,366 -28% -48% 2,917 13,520 -78% Weighted average no. of shares (in Million) 4,814 4,814 4,814 0% 0% 4,814 4,660 3% Annualized EPS (in Baht) 1.02 1.40 1.97 -28% -48% 1.21 5.80 -79% *Includes depreciation and amortization expenses **Includes gain on bargain purchase on new acquisitions and their related transaction costs, pre operative acquisition, insurance claim and reversal of provision for impairment of property, plant and equipment and inventories from floods in Lopburi, Thailand 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 30-Jun-12 vs. Baht in millions 30-Jun-12 31-Dec-11 31-Dec-11 Assets Cash and current investments 8,415 17,707 -52% Trade accounts receivable 29,667 24,509 21% Inventories 21,437 21,422 0% Other current assets 6,098 4,133 48% Total current assets 65,617 67,771 -3% Investment 5,560 5,416 3% Property, plant and equipment 84,862 66,825 27% Intangible assets 17,479 4,701 272% Other assets 1,332 1,102 21% Total assets 174,850 145,815 20% Liabilities Bank OD and short-term loans from financial institutions 14,559 13,677 6% Trade accounts payable 21,590 17,978 20% Current portion of long-term loans 6,178 6,440 -4% Current portion of finance lease liabilities 23 18 28% Other current liabilities 6,125 5,088 20% Total current liabilities 48,475 43,201 12% Long-term loans from financial institutions 48,632 33,702 44% Debenture 16,850 7,469 126% Finance lease liabilities 31 40 -23% Other liabilities 1,697 2,637 -36% Total liabilities 115,685 87,049 33% Shareholder's equity Share capital 4,814 4,814 0% Share premium 29,775 29,775 0% Retained earnings 27,997 27,884 0% Reserves (3,657) (3,846) -5% Total equity attributable to shareholders 58,929 58,627 1% Minority interest 236 139 70% Total shareholder's equity 59,165 58,766 1% Total liabilities and shareholder's equity 174,850 145,815 20% Note: The consolidated financials are based upon elimination of intra-company (or intra business segment) transactions. 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