BANGKOK, Thailand — January 28, 2021 — Indorama Ventures Public Co. Ltd., a global chemical producer, hosted its annual IVL Capital Markets Day 2021 announcing its strategic progresses. Highlights are as follows:
Our Platforms. People. Systems – prepared for growth
Despite the challenges of 2020, IVL’s vertically-integrated and multi-regional platforms have proven resilient on the back of strong volume growth and prudent capital management to maintain strong operating cash flows. Impact on demand and spreads across segments largely temporary and expected to make a strong recovery along with the economy.
In addition, the management team has used 2020 to prepare for growth by re-organizing the business, building strong leadership teams at every vertical and enabling the teams with strong support systems — centers of excellence, shared services, one ERP for, example.
Olympus transformation ahead versus first year plan
Execution of the company’s cost saving transformation project, called Olympus, is off to a strong start as IVL is ahead of first year plan by more than 25 percent. Encouraged by internal assessment and out performance, we have increased our Project Olympus ambition to deliver $610M million impact by 2023 — versus $350 million announced last year — comprising of more than 2,500 Cost Transformation and Business Full Potential initiatives.
Segment strategies refreshed
Each segment has refreshed its strategy to reflect the changing macro environment, higher ambition from transformation, opportunity to harness the ‘One IVL’ advantage and new growth and adjacency opportunities.
Sustainability and Circular Economy
IVL remains committed to ESG and continues to be recognized by rating agencies as a leader in the Chemicals Industry. In addition, IVL is on track to meeting its 2025 global commitment on recycling
Strong Financial Performance expected
IVL expects to double its EBITDA and deliver double-digit ROCE by 2023. In doing so, IVL will generate healthy cash flows to meet its capital management goals, invest in value accretive attractive projects, sustain its dividend policy to reward shareholders and continuously de-leverage its balance sheet from 1.46 to 0.6x
Aloke Lohia, group CEO of Indorama Ventures, said: “Despite a challenging year, 2020 has given me even more conviction in our businesses. Through the pandemic, we have strengthened our platforms, empowered our people and advanced our systems agenda, therefore positioning ourselves well to take advantage of opportunities in the recovery, to unlock the full potential of IVL and to ready the company for the next era.”
Posted January 28, 2021
Source: Indorama Ventures Public Company Limited (IVL)