11. Financial Position and Operating Performance

In order to read the management’s discussion and analysis, you should
read the following discussion and analysis in conjunction with our
consolidated financial statements. Our financial statements have been
prepared in accordance with generally accepted accounting principles
(“Thai GAAP”). Our financial statements have been derived from our
audited consolidated financial statements for the years ended December
31, 2008, 2009 and 2010. Additionally, you should read the informatition
in “Basis of preparation of the financial statements”, as well as notes
to financial statements, containing summary of our critical accounting
policies. In some case, in preparing our financial statements, our
management may make judgments, estimates and assumptions on business
transactions so as to prepare financial statements which are comply with
generally accepted accounting standards. The following discussion and
analysis included the forward-looking statements reflecting our current
views with respect to future events and future performance. Thus, a
number of factors could cause actual results or outcomes to differ
materially from those expressed in any forward-looking statement as
described in Risk Factors and any statements appearing elsewhere in this
offering memorandum.

Financial Statement

Financial Statement

The consolidated and separate financial statements for the years ended
December 31, 2009 and 2010 audited by Mr. Vichien Thamtrakul, Certified
Public Accountant, with registration No. 3183 of KPMG Phoomchai Audit
Ltd.

Summary of audit report of Certified Public Accountant of the Company

The auditor gives an opinion that the consolidated and separate
financial statements referred to above present fairly, in all material
respects, the financial positions as at 31 December 2010 and 2009, and
the results of operations and cash flows for the years then ended of
Indorama Ventures Public Company Limited and its subsidiaries, and of
Indorama Ventures Public Company Limited, respectively, in accordance
with generally accepted accounting principles.

The following table sets forth summary of the consolidated financial
statements of Indorama Ventures Public Company Limited for the past 2
years and for 2010

Balance Sheet (Consolidated Financial Statements)

+-------------------+---------+------+---------+------+-------+------+
| Assets            | Year    |      |         |      |       |      |
|                   | Ended   |      |         |      |       |      |
|                   | D       |      |         |      |       |      |
|                   | ecember |      |         |      |       |      |
|                   | 31,     |      |         |      |       |      |
+===================+=========+======+=========+======+=======+======+
|                   | 2008    |      | 2009    |      | 2010  |      |
+-------------------+---------+------+---------+------+-------+------+
|                   | (Bt in  | %    | (Bt in  | %    | (Bt   | %    |
|                   | mi      |      | mi      |      | in    |      |
|                   | llions) |      | llions) |      | mill  |      |
|                   |         |      |         |      | ions) |      |
+-------------------+---------+------+---------+------+-------+------+
|   Assets          |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Current Assets  |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Cash and cash   | 1,179.2 | 1.69 | 1,396.8 | 1.88 | 1,    | 1.90 |
|   equivalents     |         |      |         |      | 482.6 |      |
+-------------------+---------+------+---------+------+-------+------+
|   Current         | 257.0   | 0.37 | 1,162.9 | 1.57 | 541.7 | 0.69 |
|   investments     |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Trade account   | 8,525.1 | 1    | 9,962.8 | 1    | 11,   | 1    |
|   receivable      |         | 2.22 |         | 3.41 | 770.7 | 5.09 |
+-------------------+---------+------+---------+------+-------+------+
|   Short-term      | 212.8   | 0.31 | -       | -    | -     | -    |
|   loans to        |         |      |         |      |       |      |
|   related parties |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
| Inventories       | 7,419.2 | 1    | 9,674.0 | 1    | 11,   | 1    |
|                   |         | 0.63 |         | 3.03 | 384.3 | 4.59 |
+-------------------+---------+------+---------+------+-------+------+
|   Other current   | 1,242.1 | 1.78 | 1,369.5 | 1.84 | 964.9 | 1.24 |
|   assets          |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
| To                | 1       | 2    | 2       | 3    | 26,   | 3    |
| tal Current Asset | 8,835.5 | 7.00 | 3,566.0 | 1.73 | 144.2 | 3.52 |
+-------------------+---------+------+---------+------+-------+------+
|   Non-Current     |         |      |         |      |       |      |
|   Assets          |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Investment in   | -       | -    | -       | -    | 2,    | 2.58 |
|   j               |         |      |         |      | 012.6 |      |
| ointly-controlled |         |      |         |      |       |      |
|   entity          |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Other long term | 100.1   | 0.14 | 32.7    | 0.04 | 20.3  | 0.03 |
|   investments     |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Property, plant | 4       | 7    | 4       | 6    | 48,   | 6    |
|   and equipment   | 9,641.8 | 1.15 | 9,505.3 | 6.67 | 748.1 | 2.49 |
+-------------------+---------+------+---------+------+-------+------+
|   Intangible      | 967.8   | 1.39 | 878.9   | 1.19 | 760.2 | 0.97 |
|   assets          |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Other           | 222.8   | 0.32 | 277.2   | 0.37 | 319.3 | 0.41 |
|   non-current     |         |      |         |      |       |      |
|   assets          |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Total           | 5       | 7    | 5       | 6    | 51,   | 6    |
|   Non-Current     | 0,932.6 | 3.00 | 0,694.1 | 8.27 | 860.5 | 6.48 |
|   Asset           |         |      |         |      |       |      |
+-------------------+---------+------+---------+------+-------+------+
|   Total Assets    | 6       | 10   | 7       | 10   | 78,   | 10   |
|                   | 9,768.1 | 0.00 | 4,260.1 | 0.00 | 004.7 | 0.00 |
+-------------------+---------+------+---------+------+-------+------+

[TABLE]

+----------------------+--------+-----+---------+-----+-------+-----+
| Liabilities and      | Year   |     |         |     |       |     |
| Equity               | Ended  |     |         |     |       |     |
|                      | De     |     |         |     |       |     |
|                      | cember |     |         |     |       |     |
|                      | 31,    |     |         |     |       |     |
+======================+========+=====+=========+=====+=======+=====+
|                      | 2008   |     | 2009    |     | 2010  |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|                      | (Bt in | %   | (Bt in  | %   | (Bt   | %   |
|                      | mil    |     | mi      |     | in    |     |
|                      | lions) |     | llions) |     | mill  |     |
|                      |        |     |         |     | ions) |     |
+----------------------+--------+-----+---------+-----+-------+-----+
| Equity               |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Share capital      |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Authorized share   | 3      | 4   | 5,082.0 | 6   | 4,    | 6   |
|   capital            | ,351.5 | .80 |         | .84 | 815.9 | .17 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Issued and paid-up | 3      | 4   | 3,351.5 | 4   | 4,    | 5   |
|   share capital      | ,351.5 | .80 |         | .51 | 334.3 | .56 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Reserves           |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Share premium      | 4      | 6   | 4,443.2 | 5   | 13,   | 16  |
|                      | ,443.2 | .37 |         | .99 | 030.8 | .71 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Currency           | (      | (0. | (324.3) | (0. | (2,0  | (2. |
|   translation        | 109.2) | 16) |         | 44) | 68.5) | 65) |
|   charges            |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Revaluation        | 986.5  | 1   | 864.5   | 1   | 2,    | 2   |
|   surplus            |        | .41 |         | .17 | 255.0 | .89 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Excess of book     | 94.5   | 0   | 173.7   | 0   | (3,3  | (4. |
|   value of acquired  |        | .14 |         | .23 | 07.0) | 24) |
|   subsidiaries over  |        |     |         |     |       |     |
|   cost               |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Difference arising | (1,    | (2. | (1      | (2. | (1,5  | (2. |
|   from common        | 580.7) | 27) | ,580.7) | 13) | 80.7) | 03) |
|   control            |        |     |         |     |       |     |
|   transaction        |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Fair value changes | -      | -   | (132.8) | (0. | (1    | (0. |
|   on cash flow       |        |     |         | 18) | 09.0) | 14) |
|   hedges             |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Retained earnings  |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Appropriated       | 146.0  | 0   | 290.6   | 0   | 604.2 | 0   |
|                      |        | .21 |         | .39 |       | .77 |
|   Legal reserve      |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Unappropriated     | 5      | 7   | 1       | 13  | 18,   | 24  |
|                      | ,462.6 | .83 | 0,093.2 | .59 | 909.7 | .24 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Total equity       | 12     | 18  | 1       | 23  | 32,   | 41  |
|   attributable to    | ,794.5 | .34 | 7,179.0 | .13 | 068.8 | .11 |
|   equity holders of  |        |     |         |     |       |     |
|   the Company        |        |     |         |     |       |     |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Minority interest  | 4      | 7   | 5,286.8 | 7   | 335.8 | 0   |
|                      | ,912.4 | .04 |         | .12 |       | .43 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Total equity       | 17     | 25  | 2       | 30  | 32,   | 41  |
|                      | ,706.9 | .38 | 2,465.8 | .25 | 404.6 | .54 |
+----------------------+--------+-----+---------+-----+-------+-----+
|   Total liabilities  | 69     | 100 | 7       | 100 | 78,   | 100 |
|   and equity         | ,768.1 | .00 | 4,260.1 | .00 | 004.7 | .00 |
+----------------------+--------+-----+---------+-----+-------+-----+

Income Statement (Consolidated Financial Statements)

+----------------------+--------+-----+--------+-----+--------+-----+
|                      | Year   |     |        |     |        |     |
|                      | Ended  |     |        |     |        |     |
|                      | De     |     |        |     |        |     |
|                      | cember |     |        |     |        |     |
|                      | 31,    |     |        |     |        |     |
+======================+========+=====+========+=====+========+=====+
|                      | 2008   |     | 2009   |     | 2010   |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|                      | (Bt in | %   | (Bt in | %   | (Bt in | %   |
|                      | mil    |     | mil    |     | mil    |     |
|                      | lions) |     | lions) |     | lions) |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Revenues:          |        |     |        |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Revenue from sale  | 53     | 100 | 79     | 100 | 96     | 100 |
|   of goods           | ,331.8 | .00 | ,994.2 | .00 | ,858.2 | .00 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Interest income    | 26.9   | 0   | 18.4   | 0   | -      | 0   |
|                      |        | .05 |        | .02 |        | .00 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Dividend income    | -      | -   | -      | -   | 7.1    | 0   |
|                      |        |     |        |     |        | .01 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Net foreign        | -      | -   | 567.7  | 0   | 1      | 1   |
|   exchange gain      |        |     |        | .71 | ,178.4 | .22 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Gain on a bargain  | 3      | 5   | -      | -   | 562.8  | 0   |
|   purchase           | ,123.8 | .86 |        |     |        | .58 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Other income       | 122.4  | 0   | 305.3  | 0   | 157.0  | 0   |
|                      |        | .23 |        | .38 |        | .16 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Total revenues     | 56     | 106 | 80     | 101 | 98     | 101 |
|                      | ,604.9 | .14 | ,885.6 | .11 | ,763.5 | .97 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Expenses:          |        |     |        |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Cost of sale of    | 48     | 90  | 67     | 84  | 82     | 84  |
|   goods              | ,178.3 | .34 | ,665.9 | .59 | ,124.6 | .79 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Selling and        | 2      | 5   | 4      | 6   | 5      | 5   |
|   administrative     | ,919.4 | .47 | ,921.6 | .16 | ,476.2 | .65 |
|   expenses           |        |     |        |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Loss on disposal   | 287.2  | 0   | -      | -   | -      | 0   |
|   of subsidiary      |        | .54 |        |     |        | .00 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Net foreign        | 523.8  | 0   | -      | -   | -      | 0   |
|   exchange loss      |        | .98 |        |     |        | .00 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Management benefit | 53.0   | 0.1 | 123.9  | 0   | 147.3  | 0   |
|   expense            |        |     |        | .15 |        | .15 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Total expenses     | 51     | 97  | 72     | 90  | 87     | 90  |
|                      | ,961.7 | .43 | ,711.4 | .90 | ,748.1 | .59 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Share of profit of | -      | -   | -      | -   | 1      | 1   |
|   jointly-controlled |        |     |        |     | ,888.2 | .95 |
|   entity             |        |     |        |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Profit before      | 4      | 8   | 8      | 10  | 12     | 13  |
|   interest and       | ,643.2 | .71 | ,174.2 | .22 | ,903.6 | .32 |
|   income tax         |        |     |        |     |        |     |
|   expenses           |        |     |        |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Finance costs      | 1      | 2   | 1      | 2   | 1      | 1   |
|                      | ,467.5 | .75 | ,601.5 | .00 | ,293.5 | .34 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Income tax expense | 52.6   | 0   | 554.0  | 0   | 487.9  | 0   |
|                      |        | .10 |        | .70 |        | .50 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Net profit         | 3      | 5   | 6      | 7   | 11     | 11  |
|                      | ,123.1 | .86 | ,018.7 | .52 | ,122.2 | .48 |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Equity holders of  | 2      | -   | 4      | -   | 10     | -   |
|   the parent         | ,656.3 |     | ,824.1 |     | ,560.4 |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Minority interests | 466.8  | -   | 1      | -   | 561.8  | -   |
|                      |        |     | ,194.6 |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Net profit         | 3      | -   | 6      | -   | 11     | -   |
|                      | ,123.1 |     | ,018.7 |     | ,122.2 |     |
+----------------------+--------+-----+--------+-----+--------+-----+
|   Earnings per share | 16.51  | -   | 1.44   | -   | 2.49   | -   |
|   ⁽¹⁾ – basic        |        |     |        |     |        |     |
+----------------------+--------+-----+--------+-----+--------+-----+

(1) Calculated based on 160,914,415 shares in 2008, 3,351,543,910 shares
    in 2009, and 4,240,036,904 shares in 2010.

    Cash Flow Statement (Consolideted Financial Statements)

+--------------------------------------+----------+---------+----------+
|                                      | Year     |         |          |
|                                      | Ended    |         |          |
|                                      | December |         |          |
|                                      | 31,      |         |          |
+======================================+==========+=========+==========+
|                                      | 2008     | 2009    | 2010     |
+--------------------------------------+----------+---------+----------+
|                                      | (Bt      | (Bt     | (Bt      |
|                                      | million) | m       | million) |
|                                      |          | illion) |          |
+--------------------------------------+----------+---------+----------+
|   Cash flows from operating          |          |         |          |
|   activities                         |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Profit for the period              | 3,123.1  | 6,018.7 | 11,122.2 |
+--------------------------------------+----------+---------+----------+
|   Adjustments for                    |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Negative goodwill                  | (        | -       | (562.8)  |
|                                      | 3,123.8) |         |          |
+--------------------------------------+----------+---------+----------+
|   Reversal of provision for bad and  | (29.0)   | (28.5)  | (0.3)    |
|   doubtful debts - net               |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Interest income                    | (26.9)   | (18.4)  | (7.1)    |
+--------------------------------------+----------+---------+----------+
|   Depreciation and amortisation      | 1,566.6  | 3,081.9 | 3,331.9  |
+--------------------------------------+----------+---------+----------+
|   Finance cost                       | 1,467.5  | 1,601.5 | 1,293.5  |
+--------------------------------------+----------+---------+----------+
|   Unrealised (gain) loss on foreign  | 491.6    | (470.1) | (800.9)  |
|   currency exchange                  |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Loss on disposal of subsidiary     | 287.2    | -       | -        |
+--------------------------------------+----------+---------+----------+
|   (Reversal)Provision for inventory  | 229.6    | (87.8)  | (6.7)    |
|   obsolescence                       |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Gain on disposal of property,      | 0.2      | (1.0)   | (8.3)    |
|   plant and equipment                |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Income tax expense                 | 52.6     | 554.0   | 487.8    |
+--------------------------------------+----------+---------+----------+
|   Share of profit of                 | -        | -       | (1888.2) |
|   jointly-controlled entity          |          |         |          |
+--------------------------------------+----------+---------+----------+
|                                      | 4,038.6  | 1       | 12,961.1 |
|                                      |          | 0,650.3 |          |
+--------------------------------------+----------+---------+----------+
|   Changes in operating assets and    |          |         |          |
|   liabilities                        |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Trade accounts receivable          | 3,734.9  | (1      | (        |
|                                      |          | ,080.1) | 2,786.6) |
+--------------------------------------+----------+---------+----------+
|   Inventories                        | 679.7    | (2      | (        |
|                                      |          | ,202.9) | 2,414.8) |
+--------------------------------------+----------+---------+----------+
|   Short-term loans to related        | (42.6)   | (236.7) | 0.0      |
|   parties                            |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Other current assets               | (168.4)  | 319.8   | 1.3      |
+--------------------------------------+----------+---------+----------+
|   Other non-current assets           | 51.8     | 86.1    | 19.2     |
+--------------------------------------+----------+---------+----------+
|   Trade accounts payable             | (        | 1,886.5 | 2,786.1  |
|                                      | 4,909.8) |         |          |
+--------------------------------------+----------+---------+----------+
|   Other current liabilities          | (968.5)  | (139.3) | 215.8    |
+--------------------------------------+----------+---------+----------+
|   Other non-current liabilities      | 32.7     | (33.9)  | 69.9     |
+--------------------------------------+----------+---------+----------+
|   Income taxes paid                  | (27.6)   | (263.6) | (468.9)  |
+--------------------------------------+----------+---------+----------+
|   Net cash provided by operating     | 2,420.8  | 8,986.2 | 10,383.1 |
|   activities                         |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Cash flows from investing          |          |         |          |
|   activities                         |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Interest received                  | 37.5     | 31.5    | 5.9      |
+--------------------------------------+----------+---------+----------+
|   Current investments                | 624.5    | (967.5) | 618.5    |
+--------------------------------------+----------+---------+----------+
|   Other long-term investments        | (89.3)   | 67.4    | -        |
+--------------------------------------+----------+---------+----------+
|   Long-term loan to a related party  | -        | -       | -        |
+--------------------------------------+----------+---------+----------+
|   Purchase of property, plant and    | (        | (3      | (        |
|   equipment                          | 4,855.9) | ,784.5) | 2,418.4) |
+--------------------------------------+----------+---------+----------+
|   Sale of property, plant and        | 186.4    | 2.7     | 12.4     |
|   equipment                          |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Purchase of intangible assets      | (7.4)    | (2.8)   | (6.4)    |
+--------------------------------------+----------+---------+----------+
|   Net cash outflow on acquisition of | -        | -       | (        |
|   business                           |          |         | 1,048.9) |
+--------------------------------------+----------+---------+----------+
|   Net cash outflow on acquisition of | (1       | (165.1) | (        |
|   subsidiaries                       | 4,474.0) |         | 3,075.1) |
+--------------------------------------+----------+---------+----------+
|   Net cash inflow on disposal of     | 279.9    | -       | -        |
|   subsidiaries                       |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Net cash used in investing         | (1       | (4      | (        |
|   activities                         | 8,298.3) | ,818.3) | 5,912.0) |
+--------------------------------------+----------+---------+----------+
|   Cash flows from financing          |          |         |          |
|   activities                         |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Interest paid                      | (        | (1      | (        |
|                                      | 1,338.5) | ,915.6) | 1,338.7) |
+--------------------------------------+----------+---------+----------+
|   Dividends paid                     | (136.0)  | (181.9) | (        |
|                                      |          |         | 1,488.8) |
+--------------------------------------+----------+---------+----------+
|   Proceeds from borrowings           | 18,699.8 | 3,870.6 | 4,887.5  |
+--------------------------------------+----------+---------+----------+
|   Repayment of borrowings            | (        | (5      | (1       |
|                                      | 4,410.4) | ,618.7) | 0,058.2) |
+--------------------------------------+----------+---------+----------+
|   (Repayment) addition of finance    | (64.8)   | (72.3)  | (26.1)   |
|   leases                             |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Proceeds from issue of shares      | 4,025.1  | -       | 3,824.5  |
+--------------------------------------+----------+---------+----------+
|   Net cash (used in) provided by     | 16,775.2 | (3      | (        |
|   financing activities               |          | ,917.9) | 4,199.8) |
+--------------------------------------+----------+---------+----------+
|   Net increase (decrease) in cash    | 897.7    | 250.0   | 271.3    |
|   and cash equivalents               |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Cash and cash equivalents at       | 281.7    | 1,179.2 | 1,396.8  |
|   beginning of period                |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Effect of foreign currency         | (0.1)    | (32.4)  | (185.5)  |
|   exchange rate changes on balances  |          |         |          |
|   held in foreign currencies         |          |         |          |
+--------------------------------------+----------+---------+----------+
|   Cash and cash equivalents at end   | 1,179.2  | 1,396.8 | 1,482.6  |
|   of period                          |          |         |          |
+--------------------------------------+----------+---------+----------+

Key Financial Ratio

  ------------------------------------------------------------------------
                                         Year Ended            
                                         December              
                                         31,                   
  ----------------------------- -------- ---------- ---------- -----------
                                         2008       2009       2010

  Liquidity Ratio                                              

  Current Ratio                 Times    0.79       0.91       1.09

  Quick Ratio                   Times    0.42       0.49       0.57

  Account Receivable Turnover   Times    7.6        8.6        8.9

  Day Sales Outstanding         Days     47.1       41.8       40.5

  Inventory Turnover ⁽¹⁾        Times    8.2        7.8        7.8

  Inventory Days                Days     43.8       46.2       46.2

  Account Payable Turnover      Times    6.9        8.5        8.3

  Account Payable Days          Days     51.9       42.2       43.5

  Cash Cycle                    Days     39.0       45.7       43.2

  Profitability Ratio                                          

  Gross Margin                  %        9.66       15.41      15.21

  Operating Margin              %        4.09       9.26       9.56

  Net Profit Margin             %        5.52       7.52       11.26

  Return on Equity              %        32.51      29.96      42.89

  Efficiency Ratio                                             

  Return on Assets              %        6.57       8.36       14.61

  Return on Fixed Assets        %        14.69      18.36      29.42

  Total Assets Turnover         Times    1.19       1.12       1.30

  Financial Policy Ratio                                       

  Total Liabilities to Equity   Times    2.94       2.31       1.41
  ratio                                                        

  Interest-bearing Debt to      Times    2.40       1.78       0.99
  Equity                                                       

  Net Interest-bearing Debt to  Times    2.32       1.67       0.93
  Equity                                                       

  Interest Coverage Ratio       Times    1.65       6.64       8.03

                                                               
  ------------------------------------------------------------------------

Management’s Discussion and Analysis of Financial Condition and Results
of Operations for Year 2010

The management is pleased to announce record annual earnings of the
company's history. The record earnings are driven with strong demand
globally across all our business lines. Strong demand in the Polyester
value chain has resulted in higher integrated margins. The IVL business
model of global operations, scale and integration continues to deliver
strong growth in revenues and earnings. The depth of our integration
allows us to capture margins in the polyester value chain and our scale
provides for a competitive cost structure. The global shortage of cotton
availability and sharp increase in cotton prices has led to stronger
substitution demand in favor of Polyester fibers & yarns which in turn
has resulted in stronger demand for PTA, a key raw material for
Polyesters.

Indorama Ventures PCL (SET: “IVL”) announced Net Profit after tax and
minority of US$ 333 million (Baht 10,560 million) for the year 2010. In
year 2010, Baht continues to strengthen with weakness in Euro and US
Dollars. The Euro has been significantly weak in 2010 ending 16% cheaper
YonY, and the US Dollar ended 10% cheaper YonY as on 31^(st) December
2010.

  -------------------------------- ------------ ------------ --------------
  Key Financial Information                                   

  US$ in Millions                  FY10         FY09         FY10 vs.FY09

  Exchange Rate Baht vs US$        30.15        33.37        -10%

  Exchange Rate Baht vs Euro       39.94        47.79        -16%

  Consolidated Sales               3,055        2,331        31%

  PET resins                       1,832        1,307        40%

  Polyester & wool                 429          328          31%

  PTA                              795          696          14%

  Consolidated EBITDA              435          324          34%

  PET resins                       237          174          36%

  Polyester & wool                 70           39           78%

  PTA                              129          109          18%

  Net profit after tax and         333          141          137%
  minority                                                   

  CAPEX                            206          115          79%

  Net Debt                         1,001        1,125        -11%

  Net Debt to Equity               0.9          1.7          -44%

  Interest Coverage                10.7         7.0          53%

  ROE                              43%          32%          33%

  ROCE                             17%          14%          22%
  -------------------------------- ------------ ------------ --------------

Net profit after tax and minority for theyear 2010 includes the share of
equity income from jointly controlled entity – UAB Ottana Polimeri
Europe ofUS$ 60 million (Baht 1,888 million). It operates an integrated
PTA – PET plant located in Ottana, Italy. The equity income mainly
comprises of ‘Gain on a bargain purchase or Negative Goodwill’ from the
acquisition completed in July, 2010.

IVL 2010 Results

PET – Sales revenue increased by 40 percent in Dollar terms YonY, due to
both higher sales volume and higher selling prices. The higher sales
volume was attributed primarily to the startup of AlphaPet in USA for
both lines in 2Q 2010 and improved customer demand globally. The higher
selling prices were in line with the rising prices of the feedstock in
the polyester value chain. Operating EBITDA in dollar terms increased by
36% over last year. In 2010, despite price increase of 13% over 2009 the
Operating EBITDA margin remained relatively stable at 12.9%, comparing
with 13.3% in 2009.

Polyester fibers and Wool yarns – Operating EBITDA in US$ terms
increased by 78% over 2009, due to improvement in margins from
product-mix shift to higher value addition, lower conversion cost and
strong demand supported by soaring cotton prices. Cotton has become much
more expensive than Polyester which creates substitution demand for
Polyester and conditions conducive for Polyester makers to increase
prices and expand margins. Polyester fibers and yarns demand was strong
in the year 2010 and the additional demand from cotton substitution has
provided greater strength to demand growth. These factors resulted in
Operating EBITDA margin improving to 16.3% in 2010 from 11.9% last year.
Sales revenue increased by 31% over 2009, due to higher selling prices.

PTA – Operating EBITDA increased by 18% over 2009 in US$ terms, due to
improvement in volume and increase in margins supported by strong demand
from polyesters led by soaring cotton prices and limited PTA capacity
availability. In 2010, despite price increase of 11% over 2009 the
Operating EBITDA margin improved to 16.2% in 2010 from 15.7% in 2009.
Our PTA plants were operating at 100%, same as last year, despite 2 of
our 4 PTA plants (includes Ottana, Italy) having scheduled maintenance
shutdowns in 2010.

Cash Flow

IVL generated US$ 328 million of cash from operating activities during
the year compared to US$ 269 million in 2009. In 2010, witnessed cash
outflow for working capital of US$ 66 million on higher volumes and
selling prices. The free cashflow before capex was US$ 280 million
compared to US$ 216 million in 2009. During the year, there was cash
outflow for capex and investments of US$ 206 million primarily for the
purchase of additional shares in TPT Petrochemicals PCL, the completion
of greenfield plant AlphaPet Inc. in USA, acquisition of utility plant
in Rotterdam, Netherlands and equity investment for acquisition of an
integrated PTA-PET plant in Ottana, Italy. In 2010, the company paid US$
47 million as dividend. The remaining surplus cash has been used for
repayment of debt.

Net Profit after Tax and Minority

The Net Income after tax and minority was US$ 333 million in year 2010,
a tremendous growth of 137% over the same period last year. This
included the fair value adjustment or Negative Goodwill of US$ 17
million on acquisition of the Utility Plant in Rotterdam and the share
of equity income US$ 60 million which mainly comprises of Negative
Goodwill from the acquisition completed in July, 2010 of an integrated
PTA and PET plant in Ottana, Italy. The annualized ROE achieved is 43%
in 2010 compared to 32% achieved in 2009.

Financial Status and Ratios

IVL Net Debt stands at US$ 1,001 million as on 31^(st) December 2010,
which was 11 percent lower than same time last year. The Net Gearing
ratio decreased to 48% as at 31^(st) December 2010 from 63% same time
last year. The annualized ROCE is 17%, which does not include
extraordinary income, in 2010 against 14% in 2009. As at 31^(st)
December 2010, IVL had unutilized credit facilities of USD 654 million,
ensuring high liquidity in the group.

Annual Dividend

IVL dividend policy is to pay 30% of net profit after appropriation of
legal reserve. The board of IVL has proposed to the shareholders for
approval a dividend of Baht 0.66 per share, amounting to a dividend
amount of upto Baht 3,178.5 million (based on increased issued and
paid-up capital of IVL after rights issue of Baht 4,815.8 million). The
proposed dividend pay-out is higher by 122% over year 2009 annual
dividend of Baht 1,430.3 million.

Rights issue

In November, 2010, the IVL Board of Directors approved the issuance of
481,585,672 free Transferable Subscription Right (TSRs) or “IVL-T1” to
the Company’s existing shareholders (rights issue) at the ratio of 9
existing shares to 1 TSR. The TSR has an exercise ratio of 1 TSR for 1
share at an exercise price of Baht 36 per share. The issuance and
offering of the TSRs was subsequently approved in the Extraordinary
General Meeting of Shareholders convening in December, 2010. The
exercise of TSRs into shares is ongoing and the subscription will
complete on February 24, 2011. The cash received from rights issue will
increase liquidity in IVL to take-up growth initiatives, acquisitions
and expansions, in year 2011-14 and reduce the net debt-equity ratio to
much below 1 time at end of Q1, 2011.

2011 Outlook

Positive outlook for Polyester Value Chain supported by strong demand
and expanding integrated margins of our end products- PET, PTA and
Polyester fibers & yarns. PTA demand is equally very strong and
compliment to integration model of IVL. The sharp increase in Cotton
prices to historical highs has resulted in shift of demand towards
Polyester Fiber and Yarns creating scarcity for PTA which is one of the
major raw materials for polyester fibers and yarns. Further, the strong
demand globally is supported by turnaround of the economy in North
America after the 2008 crisis and is now seeing strong demand growth.
The Polyester value chain has been able to pass through the increase in
prices and expand integrated margins. As shown in chart below,
integrated spreads for PTA and PET in Q4’10 were higher over the last 8
quarters average and continues to remain strong for IVL:

[]

Polyester fibers and yarns has been taking market share which has
increased from 39% in year 2000 to 51% in year 2010E of all fibers.
Polyester growth over other fibers is from more stable and sufficient
supply as not dependent on weather related production impact, more
functional as better stretch, durability and less water absorbency and
its lower cost. Cotton is a natural fiber and its supply is dependent on
weather conditions as well as on competing cash crops and Bio-fuel
demand, due to limited supply of land. The proximity of Polyester Value
Chain to consumer necessity has resulted in continuous positive growth
in demand whether it is PET or polyester fibers and yarns. PTA is tight
on strong demand from Polyester and PET and spreads are expected to
remain firm. Polyester fibers and yarns will continue to gain market
share among demand for all fibers and yarns as shown in bar chart below:

[]

Source: Industry data

2011 is expected to see the fast pace of IVL in delivery of both
performance and size growth. The AlphaPet plant is fully operational and
has demonstrated its full nameplate capacity of 1200tpd in November and
is expected to ramp-up to full capacity in the first half of next year.
The first full year impact of volume from AlphaPet will be in year 2011.
In addition, IVL has been able to turnaround the integrated PTA – PET
plant in Italy to positive earnings in 4Q 2010, shortly after completed
the joint venture investment in July, 2010. IVL has completed the
acquisition of PET plant in China at the end of January, 2011and within
1Q 2011, IVL will complete all the acquisitions announced, namely the
Invista PET and Polyester plants in US & Mexico, the SK PET and
Polyester plants in Indonesia and Poland. Recently announced Trevira is
also expected to be closed within the first half of year 2011. These
will add the installed capacity by 2.1 million tonnes to the IVL current
installed capacity of 3.6 million tonnes (excluding joint venture plants
in Italy). The management continues to look at various growth options in
all parts of the world, especially in Asia and Middle East & Africa, in
line with its “Aspiration 2014” plan.

Projects update

In May, 2010, IVL agreed to expand 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 in quarter 1, 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.

In August, 2010, IVL agreed to set up a new PET plant by one of its
subsidiary Indorama Polymers PCL. “IRP”. IRP through a new wholly owned
subsidiary will be setting up a 75,000 tons per annum solid state
polymerization “SSP” plant to produce PET at Port Harcourt, Nigeria.
This is the first PET investment of IVL in Africa and thus establishing
its foothold in the 450,000 tons per annum market demand. Currently,
there is only one producer of PET in Africa. The plant is expected to
complete and start commercial operations in quarter 4, 2011. It is
expected to be value accretive to earnings.

In August, 2010, IVL agreed to implement a PET Recycling project or
Flake to Resins with a capacity of 36,000 tpa in AlphaPet Inc., USA. The
project is in line with demand from branded beverage companies in the
fast moving consumer goods sector. The process and technology is
approved and availability of clean flakes has been tied-up from within a
close proximity of the plant. The project is expected to complete and
start-up in quarter 4, 2011. It is expected to be value accretive to
earnings. Also, the project meets CSR objectives of IVL to protect
environment and to promote recycling.

In August, 2010, IVL agreed to implement a 2 MW Solar Power Project in
Lopburi, Thailand. The electricity generated will be supplied to the PEA
grid and falls in the Very Small Power Producer Program “VSPP” under
which will avail long term incentives on investment in renewable energy.
Thailand with very good solar radiation provides opportunity to tap
solar energy, a renewable energy source. The project will be located at
our existing site and will utilize for productive use surplus vacant
land which falls in the Green Zone. The project will avail BOI promotion
privileges for exemption of corporate tax, custom duty and other
incentives. The project is expected to complete and start-up in quarter
1, 2011. Also, the project meets CSR objectives of IVL to protect
environment, reduce carbon footprint and community development.

In November, 2010, IVL agreed to the acquisition of a plant with an
installed capacity of 406,000 tons of PET and Polyester polymers per
annum from Guangdong Shinda UHMWPE Co., Ltd. The plant is located in
Kaiping City, Guangdong Province of China. This is the first investment
of IVL in China and will allow IVL to establish its footprint in one of
the fast growing countries for PET. IVL has completed the acquisition on
January 27, 2011. It is expected to be value accretive to earnings.

In November, 2010, IVL agreed to acquire from Invista S.à r.l., their
Polyester resins and Polyester staple assets located at Spartanburg,
South Carolina, USA and to also acquire their Latin American Polyester
resins and Polyester staple business (Grupo Arteva S. de R.L. de C.V.
and certain of their affiliates) in Queretaro, Mexico. Both sites
produce wide ranges of PET, Specialty Polymers, Fibers and Film. The
total capacity is 470,000 tons per annum in Invista’s Spartanburg and
535,000 tons per annum in Invista’s Querétaro. The transaction is
expected to close during the first quarter of 2011. This acquisition is
expected to be value accretive to earnings, making IVL the largest PET
producer in the world and at the same time complement the strategy to
increase its footprint into new higher growth markets of Central and
Latin America. Strong R&D set up in the plants will enable IVL to
provide innovative products to its customers.

In December, 2010, IVL agreed to acquire and for the purpose signed two
definitive Share Purchase Agreements, the first with SK Chemicals, Korea
and or its affiliates to acquire the PET business of SK Eurochem Sp. z
o.o. in Poland and the second with SK Syntec (a subsidiary of SK
Chemicals) to acquire the PET and Polyester business of PT SK KERIS and
PT SK Fiber in Indonesia. SK Eurochem Sp. z o.o. in Poland is a PET
chips manufacturing facility having a capacity of 140,000 tons per
annum. PT SK Keris, Indonesia is a PET Chips and Polyester Filament Yarn
manufacturing facility with a combined capacity of 160,000 tons per
annum. PT SK Fiber Indonesia is a Polyester Filament Yarn manufacturing
facility having a capacity of 36,000 tons per annum. The transaction is
expected to close during the first quarter of 2011. It is expected to be
value accretive to earnings.

In February, 2011, IVL agreed to acquire 75% equity stake in the
Polyester Staple Fiber, Specialty Filament business of Trevira GmbH
having operations in Germany and Poland. The remaining 25% will be held
by Sinterama S.p.A., Italy (the “JV Partner”). The acquisition of the
100% shares in Trevira GmbH will be done through a new Joint Venture
Company. The formation of the new JV Company and the transaction are
expected to be completed by Q2, 2011. Trevira GmbH is a fully integrated
Polyester Fiber Company in Europe with a capacity of 120,000 tons per
annum of Staple Fiber and Filament Yarn at its manufacturing locations
in Germany and Poland. Trevira GmbH is the market leader in Europe in
high value applications of polyester, especially in automotive and home
textiles. The company is a widely known and well-recognized brand both
amongst customers and producers of synthetic fabrics. The company has
several valuable patents and technologies together with a strong R&D
setup with substantial accumulated research knowledge. Trevira's
knowledge base developed over a period of time will be complementary to
IVL. The synergy will provide comprehensive and innovative solutions for
apparel and industrial applications of polyester to customers worldwide
through IVL global operations.

On completion of the above stated acquisitions and expansions, IVL will
have an increasingly advantaged portfolio and its capacity will increase
by 2.1 million tons. IVL will have the leading market position in
Thailand, North America and Europe. The regional capacity distribution
of IVL will be as shown below in the pie-chart:

[]

Important Note: 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 of 3Q 2010 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.

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.

  -----------------------------------------------------------------------
  FINANCIAL INFORMATION

  -----------------------------------------------------------------------

+-----------------------------------------------------------------------+
| -   IVL consolidated tables                                           |
|                                                                       |
| -   Business segment tables                                           |
|                                                                       |
| -   IVL consolidated balance sheet and statement of income            |
+-----------------------------------------------------------------------+

  ----------------------- -----------------------------------------------
  IVL CONSOLIDATED        

  ----------------------- -----------------------------------------------

Table 1

IVL : CASH FLOW

  ------------------------------------ ---------- ----------- -----------
                                                              FY10 vs.

  Baht in millions                     FY10       FY09        FY09

  EBITDA                               13,777     11,106      24%

  Net working capital and others       (3,109)    (1,554)     100%

  Net financial expenses               (1,333)    (1,884)     -29%

  Income tax                           (469)      (264)       78%

  Free cash flow before Capex          8,866      7,404       20%

  Capital expenditures                 (2,418)    (3,785)     -36%

  Net (acquisitions) disposals of      (4,124)    (165)       2399%
  subsidiaries                                                

  Free cash flow after Capex           2,324      3,454       -33%

  Dividends                            (1,489)    (182)       718%

  Proceeds from issues of shares       3,825      0           n/a

  Changes in net debt                  (4,660)    (3,272)     42%
  ------------------------------------ ---------- ----------- -----------

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 2

IVL : FINANCIAL RATIOS

  -------------------------------------------- ------------ -------------
                                               FY10         FY09

  Current ratio (times)                        1.1          0.9

  Net gearing ratio (%)                        48%          63%

  * Net operating gearing ratio (%)            48%          61%

  Interest coverage ratio (times)              10.7         7.0

  ** ROE (%)                                   42.9%        32.2%

  *** ROCE (%)                                 17.4%        14.3%
  -------------------------------------------- ------------ -------------

  ----------------------------------------------------------------- -----
  * 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    

  ------ ----------------------------------------------------------------

Table 3

PET : CAPACITY AND UTILISATION (%)

  ------------------------------------ ----------- ----------- -----------
                                                               FY10 vs.

                                       FY10        FY09        FY09

  *Production capacity (in Tonnes)     1,402,013   1,036,944   35%

  Production volumes (in Tonnes)       1,306,728   1,047,414   25%

  Utilisation rate (%)                 93%         101%         
  ------------------------------------ ----------- ----------- -----------

*Capacity based on available days in the quarter for production. From
4Q09 onwards, PET capacity and volumes include a line switched from
Polyester fibers to PET

Table 4

PET : REVENUES

  ------------------------------------ ---------- ----------- -----------
                                                              FY10 vs.

                                       FY10       FY09        FY09

  Total revenues                                               

  Baht in millions                     58,073     44,860      29%

  USD in millions                      1,832      1,307       40%

  Growth in Baht revenues from:                                

  Volume growth                                               25%

  Price movement                                              13%

  Exchange rate movement                                      -9%

  Proportion of revenues by geographic                         

  Thailand                             7%         6%           

  Asia (excluding Thailand)            5%         4%           

  North America                        34%        26%          

  Europe                               47%        57%          

  Rest of the World                    7%         6%           
  ------------------------------------ ---------- ----------- -----------

Table 5

PET : OPERATING EBITDA AND MARGIN

  ------------------------------------ ---------- ----------- -----------
                                                              FY10 vs.

                                       FY10       FY09        FY09

  *Operating EBITDA                                            

  Baht in millions                     7,511      5,979       26%

  USD in millions                      237        174         36%

  Margin (%)                           12.9%      13.3%        
  ------------------------------------ ---------- ----------- -----------

* 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                                    FY10 vs.

                                       FY10       FY09        FY09

  *Production capacity (in Tonnes)     262,948    328,300     -20%

  **Production volumes (in Tonnes)     278,930    297,750     -6%

  Utilisation rate (%)                 106%       91%          

                                                              

  WOOL YARNS                                                  FY10 vs.

                                       FY10       FY09        FY09

  *Production capacity (in Tonnes)     5,900      5,900       0%

  **Production volumes (in Tonnes)     5,068      3,062       66%

  Utilisation rate (%)                 86%        52%          
  ------------------------------------ ---------- ----------- -----------

*Capacity based on available days in the quarter for production. From
4Q09 onwards, Polyester fibers and yarns capacity and volumes exclude a
line switched from Polyester fibers to PET

**Production volumes based on equivalent production 

Table 7

POLYESTER & WOOL : REVENUES

  ------------------------------------ ---------- ----------- -----------
                                                              FY10 vs.

                                       FY10       FY09        FY09

  Total revenues                                               

  Baht in millions                     13,593     11,264      21%

  USD in millions                      429        328         31%

  Growth in Baht revenues from:                                

  Volume growth                                               -3%

  Price movement                                              32%

  Exchange rate movement                                      -7%

  Proportion of revenues by geographic                         

  Thailand                             23%        22%          

  Asia (excluding Thailand)            40%        44%          

  North America                        6%         5%           

  Europe                               18%        14%          

  Rest of the World                    12%        15%          
  ------------------------------------ ---------- ----------- -----------

Table 8

POLYESTER & WOOL : OPERATING EBITDA AND MARGIN

  ------------------------------------ ---------- ----------- -----------
                                                              FY10 vs.

                                       FY10       FY09        FY09

  *Operating EBITDA                                            

  Baht in millions                     2,218      1,345       65%

  USD in millions                      70         39          78%

  Margin (%)                           16.3%      11.9%        
  ------------------------------------ ---------- ----------- -----------

* 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 (%)

  ------------------------------------ ----------- ----------- -----------
                                                               FY10 vs.

                                       FY10        FY09        FY09

  *Production capacity (in Tonnes)     1,590,000   1,590,000   0%

  Production volumes (in Tonnes)       1,594,777   1,584,683   1%

  Utilisation rate (%)                 100%        100%         
  ------------------------------------ ----------- ----------- -----------

*Capacity based on available days in the quarter for production.

Table 10

PTA : REVENUES

  ------------------------------------- ---------- ----------- -----------
                                                               FY10 vs.

                                        FY10       FY09        FY09

  Total revenues                                                

  Baht in millions                      47,991     45,981      4%

  USD in millions                       1,514      1,340       13%

  Growth in Baht revenues from:                                 

  Volume growth                                                -1%

  Price movement                                               11%

  Exchange rate movement                                       -6%

  Sales to PET business                                         

  Baht in millions                      16,529     15,891      4%

  USD in millions                       521        463         13%

  Sales to Polyester business                                   

  Baht in millions                      6,270      6,220       1%

  USD in millions                       198        181         9%

  Total revenues after eliminations                             

  Baht in millions                      25,193     23,870      6%

  USD in millions                       795        696         14%

                                                                

  PTA integration ratio (%)             48%        48%          

                                                               

  Proportion of revenues (after                                
  eliminations) by geographic                                  

  Thailand                              26%        28%          

  Asia (excluding Thailand)             63%        52%          

  North America                         0%         0%           

  Europe                                7%         13%          

  Rest of the World                     4%         8%           
  ------------------------------------- ---------- ----------- -----------

Table 11

PTA : OPERATING EBITDA AND MARGIN

  ------------------------------------- ---------- ----------- -----------
                                                               FY10 vs.

                                        FY10       FY09        FY09

  *Operating EBITDA                                             

  Baht in millions                      4,076      3,750       9%

  USD in millions                       129        109         18%

  Margin (%)                            16.2%      15.7%        
  ------------------------------------- ---------- ----------- -----------

* 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

  -----------------------------------------------------------------------

  ------------------------------------- ---------- ----------- -----------
                                                               FY10 vs.

  Baht in millions                      FY10       FY09        FY09

                                                               

  Net sales                             96,858     79,994      21%

  *Cost of sales                        82,125     67,666      21%

  Gross profit                          14,733     12,328      20%

  *Selling and administrative expenses  5,582      5,045       11%

  Other income (expense), net           116        95          22%

  Foreign exchange gain (loss)          1,178      568         107%

  EBITDA                                13,777     11,106      24%

  Depreciation and amortization         3,332      3,160       5%

  Operating income                      10,445     7,946       31%

  **Extraordinary items                 2,451      210         1067%

  Interest income                       7          18          -61%

  Interest expense                      1,293      1,601       -19%

  Profit (loss) before tax              11,610     6,573       77%

  Income tax expense                    488        554         -12%

  Profit (loss) for the period          11,122     6,019       85%

                                                               

  Minority interest                     562        1,195       -53%

  Net profit after minority interest    10,560     4,824       119%

                                                               

  Weighted average no. of shares (in    4,240      3,352       27%
  Million)                                                     

  Annualised earnings per share (in     2.49       1.44        73%
  Baht)                                                        
  ------------------------------------- ---------- ----------- -----------

*Includes depreciation and amortization expenses

**Includes gain on bargain purchase on new acquisitions and share of
equity income from joint venture company in Italy

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                                          

  Baht in millions                     Dec-10     Dec-09      Dec-10 vs.  
                                                              Dec-09      

                                                                          

  Assets                                                                  

  Cash and current investments         2,024      2,560       -21%        

  Trade accounts receivable            11,771     9,963       18%         

  Inventories                          11,384     9,674       18%         

  Other current assets                 965        1,369       -30%        

  Total current assets                 26,144     23,566      11%         

  Investment                           2,013      0           n/a         

  Property, plant and equipment        48,748     49,505      -2%         

  Intangible assets                    760        879         -14%        

  Other assets                         340        310         10%         

  Total assets                         78,005     74,260      5%          

  Liabilities                                                             

  Bank OD and short-term loans from    5,365      10,004      -46%        
  financial institutions                                                  

  Trade accounts payable               10,858     9,004       21%         

  Current portion of long-term loans   5,954      4,667       28%         

  Current portion of finance lease     22         25          -12%        
  liabilities                                                             

  Other current liabilities            1,881      2,085       -10%        

  Total current liabilities            24,080     25,785      -7%         

  Long-term loans from financial       20,805     25,331      -18%        
  institutions                                                            

  Finance lease liabilities            58         73          -21%        

  Other liabilities                    657        605         9%          

  Total liabilities                    45,600     51,794      -12%        

  Shareholder's equity                                                    

  Share capital                        4,334      3,352       29%         

  Share premium                        13,031     4,443       193%        

  Retained earnings                    18,910     10,093      87%         

  Reserves                             (4,206)    (709)       493%        

  Total equity attributable to         32,069     17,179      87%         
  shareholders                                                            

  Minority interest                    336        5,287       -94%        

  Total shareholder's equity           32,405     22,466      44%         

  Total liabilities and shareholder's  78,005     74,260      5%          
  equity                                                                  
  ------------------------------------ ---------- ----------- ----------- --

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.

Our Acquisitions, Expansion and Disposals

During the period from 2008 to the end of 2010, we commenced commercial
operations at new greenfield production facilities and made a series of
acquisitions. We have also converted a production line of the existing
polyester capacity at Indorama Polyester Industries Map Ta Phut
polyester facility into a PET resin line, which began commercial
production in the fourth quarter of 2009, and we have restarted the
second line of the existing polyester capacity at the Indorama Polyester
Industries Map Ta Phut polyester facility, which resumed commercial
production in the first quarter of 2009. In 2010, our new greenfield
AlphaPET facility in Alabama have started the commercial operation for
both production lines. We have also acquired the utility production
facility in Rotterdam and formed a joint venture company UAB Ottana
Polimeri Europe to invest in PTA and PET facility in Italy during the
year.

2008 Financial Statements

-   We consolidated the assets of the PET and PTA facilities that we
    acquired in Rotterdam and Workington from April 1, 2008 onwards.
    Therefore our full year 2008 annual consolidated financial
    statements reflect the financial condition and results of operations
    of the IRP Rotterdam, IRP Workington and IRH Rotterdam assets for
    only nine months.

-   We consolidated the financial statements of Indorama Petrochem, TPT
    Petrochemicals and Indorama Polyester Industries from October 1,
    2008 onwards. Therefore our full year 2008 annual consolidated
    financial statements reflect the financial condition and results of
    operations of these subsidiaries for only three months. The
    financial condition and results of operations of these subsidiaries
    are fully reflected only in our 2009 consolidated financial
    statements.

  2009 Financial Statements

-   The Indorama Polyester Industries Map Ta Phut polyester facility was
    not operational from 2006 until December 2008, and only restarted
    commercial production in the first quarter of 2009, our full year
    2008 annual consolidated financial statements do not reflect the
    actual operations of Indorama Polyester Industries, our full year
    2009 annual consolidated financial statements reflect, the impact of
    the resumption of commercial production at the facility. Operations
    in 2009 reflect the period of capacity ramp up, stabilization of
    operations, the addition of product lines, improvements in the cost
    of production and the revamping of the facility that had been closed
    for approximately two years, we expect the impact of full commercial
    production will only be reflected in our financial statements from
    2010 onwards.

-   Following the sale of Indo-Rama Chemicals, we deconsolidated the
    financial statements of Indo-Rama Chemicals from June 19, 2008
    onwards. Therefore, our full year 2008 annual consolidated financial
    statements reflects the financial condition and results of
    operations of the subsidiary for only six months, and will no longer
    be reflected in our financial statements from 2009 onwards.

  2010 Financial Statements

-   The new Greenfield AlphaPET facility in Alabama has started one of
    the two production lines since October 2009, and subsequently
    started another line in June 2010. Operations in 2010 reflect the
    period of capacity ramp up and stabilization of operations. Year
    2011 will reflect the full impact of commercial production in our
    financial statements.

-   In March 2010, we had formed a joint venture company UAB Ottana
    Polimeri Europe in Lithuania to invest in PTA and PET facility in
    Ottana, Italy. The acquisition was completed on July 1, 2010 and IVL
    holds 50% equity stake in the joint venture company. We have applied
    the equity method of accounting for this investment in the
    consolidated financial statements for the year ended 31 December
    2010 and it reflects equity income from operations for only six
    months. Year 2011 will be the first full year of operations on
    acquisition and will reflect in our financial statements.