Indorama Ventures Public Company Limited (IVL) Earnings Call Transcript & Summary

A very good morning and good evening to our investors who have joined from the Americas. I hope you're all safe and fine. My name is Vikash Jalan, and I'm Vice President, Investor Relations and Planning at Indorama Ventures. On behalf of my company, I welcome all of you to our flagship annual event, Capital Markets Day. At this event, every year, we talk about our business strategies and discuss our road map for the next 3 years on our business plans. We will do this today also and they'll be covered by our CEO and group CFO, Mr. D.K. Agarwal. However, this time and for the very first time, our group CEO, Mr. Aloke Lohia, will speak about the purpose statement of IVL and give us the Vision 2030 for the company. A quick disclaimer that this meeting is being recorded, and we have made certain forward-looking statements and made some estimates, which are, of course, based on facts and views available at this point in time. At the end of the prepared presentation, we'll open up for the Q&A. [Operator Instructions]. Our 3 business heads, Alastair, Sanjay and Chris, will join with us to answer all your questions, along with Mr. Yash Lohia, our Chief Sustainability Officer. Okay. So without any further delay, let's start, and I request to play a short video first. And after that, I request Mr. Lohia to start with his presentation. Thank you. [Presentation]

Good morning. Welcome to our Capital Market Day 2022. Today, we are joined with our members of the Indorama Management Council. Mr. D.K. Agarwal is going to take us through our 3-year business plan right after my discussion. We also have today available Mr. Chris Kenneally, who heads our Fiber business; and Mr. Alastair Port, who heads our IOD business. Recently, Mr. Sanjay Ahuja has been promoted to become the COO of our CPET, and as you know, which is also our largest business at the present. The presentations have been presented -- has been prepared by our teams in business development and in Investor Relations. So without much further ado, let me start. The past 2 years had been -- seen unprecedented times as we confronted and navigated our first global pandemic. I'm proud that IVL has emerged as a more responsible and agile organization in these challenging times, be it due to lost production, due to the absenteeism or due to supply disruptions, just to name a few other disruptions and the challenges that we have faced. D.K. will discuss our 3-year business plan that we prepare in earnest for our Capital Market Day. And I hope you will agree that over the last couple of years, the rigor with which these plans are put together are seen demonstratively enhanced learnings. IVL has continued capturing global opportunities and executing on our growth and circularity objectives as a firm. Our continued stellar track record allows me to claim that whatever challenges unfold in the year ahead, I have never been more confident about the durability of our strategy, the capability of our global team or the resilience of our product portfolio. I plan to discuss today our view on where IVL is heading in this decade. For the very first time since our listing back in 2005 as [ IIP ], we have formulated a longer-term vision guiding -- guided by our purpose. Our plan, like everyone else's, is organized to stay successful in the face of accelerating changes. The pace of disruption is much faster than it has ever been. Closer collaboration inside our company and with our stakeholders as well as the new streamlined business model will enable the company to grow shareholder value and position IVL for success through the energy transition. We are confident in our capabilities to deliver on our aspirational 2030 vision that grows shareholder value, while preserving our purpose of reimagining chemistry together to create a better world. Next please. Sorry, can you go back? This single slide captures very well the products that IVL is in. And as you can see from the slide, predominantly, all our products cater to our everyday life to our everyday needs. Next, please. Each of our segments are well positioned, and we are a global leader in most of them. Our segment strategy for CPET remains to strengthen our circularity platform as well as our specialty businesses. In IOD, we are building repeatedly a bigger platform. And with Oxiteno, we will continue to develop our leadership in the surfactants arena. We also get an opportunity with Oxiteno to more than double our R&D platform, and therefore, use innovation for customer-centric portfolio. In Fibers, we have strengthened and expanded our platform over the years. And our next level of R&D partnerships are focused on sustainable products. Next, please. While thinking of the 2030 targets and vision, it was important to see whether the megatrends support our portfolio and our businesses. And as you would notice, we went and validated based on sustainability, based on safety and wellness as well as the megatrends on population growth that all of these factors support the continued expansion of IVL. Next, please. So our purpose, reimagining chemistry together to create a better world. What do we mean by that? Next, please. Our Vision 2030 are around 3 pillars. The first is around our products for value and for performance and for the environment. The second pillar is around decarbonization of our assets as well as to reduce our GHG intensity, which we had targets for 2025, which we are now expanding to 2030, and to make our products and our targets achievable is our people and our systems. And we have been, over the last few years, been investing in our talent and investing in this leadership, who is going to take us forward in this next 10 years to 2030. Next, please. All the product segments that we are in are going to incorporate sustainability brand Deja, which means more eco-friendly, improved performance and provide a better value to our customers. Next, please. The linear economy of the past for the state fossil fuel-based use and discard. But now with the supply coming -- can we add the next slide? With the circularity in mind where IVL has demonstrated 10 years of leadership and we continue to invest in mechanical recycling at present, and together with the new vision to invest in biomass-based raw materials, the Deja brand will grow to provide significant raw material inputs, let's not only lower our GHG emissions, but also helps meet our customers' targets. The 750,000 tonne target by 2025 is now being extended to 3 million tonne of circular products into our feedstock. That's a significant increase from our targets that we established 3 years ago. Next, please. The newness of the 2030 vision is going beyond mechanical recycling, going into chemical recycling and even going into industrial crops, which means biomass. One thing that we have been asked repeatedly is what binds all the products of IVL together. On this slide, in the bottom, 83% of the feedstock that we consume in IVL are based on feedstock that are used in polyester making. That is the glue that binds all of IVL together. All the 3 segments they use polyester-based feedstocks. Whether it is ethylene or it is aromatic products, these are the same raw materials that can be made from biomass, and this is an area where we intend to invest significantly over the next 7, 8 years to come out by 2030 as the most sustainable company in our value chain. The target is to have 1/3 of our inputs coming from renewable or from recycled raw materials. Next, please. We are also investing $640 million in reduction of emissions from our sites, be it to removing all coal-based utilities and investing more in renewable utilities to fill our operations. There are also investments being considered into the carbon capture as well as the intensive studies going on, on how we could deploy green hydrogen. Next, please. So the new targets for 2030 is a reduction of the GHG intensity from 10% to 30%, and which follows the energy intensity, the renewable electricity consumption as well as the water intensity. So more challenging targets, but I'm very confident in our team's ability to get to these numbers as they have been put together based on understanding of our sites and opportunities available. Even more important, these investments, we believe, yield a return of 4 to 5 years, which is remarkable. So not only do we become a better sustainable corporation, but we also yield good returns. Next, please. On the people and on the platform on the organization, we are investing heavily in the last many years, again, on our S/4 HANA journey with our phase 1 rolled out last year, and now we continue in 2022 and 2023 to complete our S/4 HANA implementation, which with the integrated central platform will become our own single source of truth. We are investing in our IT infrastructure. As we all know, the cybersecurity risks are immense, and we intend to be investing to ensure that we are not -- we do not lose connectivity to our businesses and our customers because of these attacks. The enabler for our improved performance is on digital, which will accelerate our decision-making. And the Lean Six Sigma becomes a new way of our business performance that will go across all our 124 sites. Next, please. All of what I've said is only possible with empowered people. And as -- I love this slide as it shows there's a generation 1 now handing over to generation 2 in the last -- in the next 10 years, next 5 years. And this is going to be an immense opportunity as we get more learnings, more energy from the people who are well knowledgeable about our business and with good leadership styles. The diversity and the inclusion that we have, being a global company, helps us immensely as we believe that we better understand the mind of the consumer, the mind of the customer and as well our own talent inside IVL, the 25,000 strong people that we have. Next, please. This is what the outcome by 2030 would look like. It shows significant investment of $18 billion by 2020 -- by 2030, which is a significant increase on the investment in the next 3 years of $3 billion that you see on the right-hand side. Even more significant is 1/3 of the new investments are going to sustainably -- sustainability and reduction of emissions as well as improving the renewable inputs into our products. And even more so, all these investments, we believe, have a payback period, and we have estimated a 7-year payback for these investments. Some of these investments would still be in project stage by the end of 2030. But collectively, as you can see on the table on the left, they drive immense shareholder value. Our recycle content would grow from 13% and 24% to 38%. And our intensity, as I mentioned earlier, will grow from 10% reduction to 30% reduction. So this is a big picture of what our 2030 vision looks like. This is the first time we have been bold enough to share with you what we believe our future looks like. And for me, personally, this is after 20 years that I have come out with a vision, which is as bold as when the first vision was made in 2002, but not shared publicly, was our PET vision, where we said in 2002 to ourselves that by 2010, we will be amongst the top 5 PET producers in the world and a $1 billion operation. We far exceeded those targets. We became the #1 PET producer in the world, and we had a $3 billion revenue by the end of 2010. That is the time when IVL got listed. Next, please. So in conclusion, before I hand it over to D.K., I want to share with you the short- and medium-term term plan. Our 3 segments are strong and well positioned for future growth. We are resilient. We are preparing ourselves for the new world of sustainability and circularity. And we have strong financial performance with ample headroom to deliver on our vision. Thank you very much.

Very good morning. Thank you, Mr. Lohia. I hope all of you are keeping safe, anticipating that we are not able to meet in person, but this is the second year we are meeting virtually. Yes. If you can go to the slide. I will cover the midterm and short-term, as Mr. Lohia mentioned. Let's move to the next slide. The key messages, which I want to drive here, is very important. What is IVL? IVL is highly-integrated world-class chemical company, serving attractive and resilient end markets through a unique footprint with regional supply chain. We have 3 very important items here, which defines the business model of IVL. One, integration. Integration means, you capture the entire value chain margin, and that differentiates you from the competitor. The second very important is the resilient end markets. We serve, we touch the lives of the people. This means our products grow, and you will see in future slides how the growth is. And the third important, and very important is, regional supply chain. In the present world of disruption, the customers are looking for local sourcing, and we have been able to price the product based on the local alternative availability, means, import parity. So these 3 pillars differentiates the IVL model. We are recognizing the leading the industry's sustainability drive. We continue to expand our leadership position through substantial investments, as Mr. Lohia mentioned, in sustainability and circularity. We went very correctly. We acquired many recycling assets around the globe. We are consolidating them, and we are the largest recyclers. We have invested in the solutions where we can create return on the decarbonization. Olympus, in 2019 Capital Markets Day, we talked about it. I think when we talked about $600 million, I'm very happy that it has gone deep-rooted in the organization. And today, as we look at it, we have raised the Olympus target to $670 million, and this is recurring EBITDA. This is not onetime saving to uplift by 2024. And we continue to invest in platform, people and system with SAP HANA 4 rollout, GBS, 6 enabling functions to prepare IVL for future as we rolled out the 2030 vision. What all this translated it into, into a very strong core EBITDA of $1.8 billion for 2021 and furthermore in 2022 and a reported EBITDA of $2 billion in 2021, which proves the resiliency of the business. Well, what is in the plan for '24? We are well set to continue the growth trajectory to a 15% ROCE by 2024. And this is all committed and nothing speculative with disciplined capital allocation resulting in a very strong cash flow of $5 billion to $6 billion, creating headroom for further growth, as Mr. Lohia spelled out. So this is the most exciting time what we have in the IVL history. Let's move to the next slide. This slide tells you the market leadership. We achieved the market leadership position in every sector we decided to compete in. We are the leading PET company in the world. Today, we have 22% market share. We are the most prominent name in surfactants after the Oxiteno acquisition. EO and ethoxylation in Americas, a position that is strengthening further with Oxiteno acquisition. And I think that gives us a very strong position in this business segment. We are leaders in the tire reinforcement on automotive safety, in hygiene fibers, non-wovens and in Lifestyle, polyester fibers and yarn. I think they're very important that there's a lot of barrier to entry in the Fibers business. As you can see, we have 1 in 2 premium baby diapers made from our fibers; 1 in 4 airbags made from our yarns, which is a very strong creation; 1 in 4 cleaning products in Americas contain IOD products; 1 in 5 PET bottles are made from our PET resin; and that puts IVL into one of the strongest position in the marketplace, where we operate. The fact that our product serves and application that touches people's everyday's life is one key source of our resilience, which the COVID pandemic has confirmed, as you can see, that how the business has performed in the last 2 years. So every business where we operate, we have the leading position. Next slide, please. I think this is very important integration, as I talked about. Our high level of integration within and across our business is another major source of our competitive advantage. What does integration mean? Integration allows us to capture more value chain margin and create significant barriers for entry into the commodity market, which makes it difficult for others to copy our business model. Well, for example, in Europe, we are the only integrated PET producers and which creates a very good position for our business. We constantly monitor and expand this advantage, as example, by continuously innovating and expanding into adjacent HVA products. Take, for example, packaging, as an example, which creates demand for our presence in new markets, while also providing us with attractive margin and returns. Attracted this packaging we have rolled out in developing world where we don't compete with our customers. Our latest acquisition Oxiteno fits right into this picture, strengthening our competitive positioning and integration advantage significantly and access to the bio feedstock. A combined IOD and Oxiteno also opened significant new avenues to attractive stable downstream application. All these 3 businesses are strong platforms for further growth. Our combined platform has never been so stronger and which was proven in the 2021 results and further going down. Let's move to next slide. This is the geographical footprint. It's very important as I told you about this present world of supply chain disruption. Our strategic footprint is unique. We are truly local, all around the world, operating in 6 continents, 33 countries. This is difficult to imitate. We are a very proud Thai company, hosting Thai flag in 33 countries. Our unique local projects allow us to realize profit [ and depths ] market. We can command very good pricing. And you will see in the Western world, our profitability is much higher. Our stronger presence in Western markets further helps to enjoy the premium above the Asian benchmark. IVL has always believed in the strategic advantage that comes with our geographical footprint. Local access to the customers allow unattached service quality so we can serve our customers better. It also allows for a much more efficient logistic and unmatched agility. People are looking for local solutions today. And probably most important, it gives us a structural advantage, such as feedstock access. You have, for instance, heard me speak about our shale gas advantage in the previous sessions. Now over the past 2 years, the advantage of our unique geographical footprint has been amplified and proven. The COVID crisis has demonstrated to companies around the world the value of regional supply chain and resilience. People are looking for local suppliers. The intensified awareness of the need for more sustainability further boosts the competitive advantage of our geographical footprint. Short supply chain are more sustainable. In time of global supply chain disruption, we are significantly -- advantaged. And these advantages and competitive advantages cannot be imitated, and that's the business model of IVL. As I always say, we are in the business which is necessity, not discretionary expenditures. Next slide. We talked about ESG. IVL is already widely recognized as a leader in ESG. We are happy to see our efforts being recognized in recent ESG rating. For example, in 2021 alone, we were rated 1 out of 50 chemical companies by [ ChemScore ]. We got the S&P Global Sustainability Award, and we're ranked in the top 1% by EcoVadis. But we don't want to stop here. As you saw in Mr. Lohia's presentation, we want to drive sustainability in our products and in our operation. To that end, we are working on multiple initiatives, driving product innovation and expanding our portfolio of carbon-neutral products under our Deja brand, which you heard in previous presentation. Starting up in PET recycling, we are going to double it to 1.5 million tons. We already achieved nearly 750 PET and increase the recycling and use the beauty of this polymer PET, and finally, committing $640 million to drive decarbonization of our operation with projects. That is attractive payback. When you decarbonize, it's important, are you getting the payback on the investment? We are confident that these initiatives will help us to achieve our commitments that you see on this page or on this slide. Let's move to next slide. This is our team from our Olympus program. Our team continues to be laser-focused on the delivery of Project Olympus. Our 3 years transformation that will result in more than $600 million of recurring EBITDA uplift. And you can see here, we already unlocked $280 million to $290 million EBITDA by 2021. All businesses meticulously implement hundreds of initiatives across the regions, the progress of which is closely monitored through our Transformation Management Office, which we call the TMO, using our key system. I'm very pleased to say we continue to track ahead of plan, delivering sustainable savings faster than planned, and that despite the many COVID-related operational changes the team had to deal with. In fact, the teams even identified further Olympus potentials throughout the year so that we have raised our Olympus target again to $650 million by -- so this is a deep-rooted in the organization journey of excellence, which will continue. And I'm very proud that Olympus is truly a success story for IVL, which will further increase the strength of our already powerful platform. So you have a good platform. You bought legacy assets. You bought market, and you keep improving the footprint and the cost structure. Next, please. As we -- Mr. Lohia covered, what is important is that we continue to invest in our high operating performance systems. This is very important. When we think about our strategy, we feel quite confident, especially in the resilience and performance of our platforms. As you saw on the previous page, our Olympus transformation is progressing significantly better than planned and continue to strengthen our platform. We have also continued to make tremendous progress in other areas where the group provides strong parenting advantage to the segment. We have continued to build our leadership team by the empowerment, as you have seen in some of the recent changes. Our enabling functions, such as digital IVEX, which is Lean Six Sigma, [ EHS ] are contributing towards driving excellence in our businesses. Our ERP, SAP HANA 4 and GBS transformation are progressing on track. Over the next 5 years, we'll continue to build on the successes to deliver the synergy of the group to the segment. So we continue to invest in people and systems. Next slide, please. What does it translates into? In 2020, when the pandemic started, we were not sure how the portfolio will be behaving. Portfolio has been very resilient. After a very challenging 2020, many factors due to COVID-19, natural calamities, supply chain constraints, drop in the oil prices, we just could achieve $1.1 billion EBITDA. Look at the growth from '20 to '21. In 2021, we not only recovered but delivered one of the best performance in the IVL history, which is a testimony of the resiliency and the management of the company. At $1.8 billion, we are creating a return on capital employed of 12.2%. This is not only driven by market recovery, but the agility of the management that we have been able to capture, but also a result of investing into fundamentals and delivering Olympus with $290 million of run rate savings. So markets have been great, but we have been able to milk the situation. What is in the store for 2024? You can see from 14.9 million, it is 18 million volume, where basically these are all committed projects. There is no speculative capacity addition here. So in addition to further normalization of the 3 markets, our strategic investment into the future is expected to deliver $2.8 billion to $3 billion EBITDA and 15% to 17% ROCE by 2024. And these plans have been built from bottoms up. Driven by executing on our key strategic thrust, integration advantage to capture value chain margin across the group, I mean, today, 2022, as you can see, we can't give you the exact number, but you can see the difference how the jump in the earning will be there as we are resetting our Western contracts for PET and which has already been executed. Lead sustainability platforms of the industry in all business segments, leverage our growth platforms, strengthening of our fundamentals and cost position with Olympus drive, continued investment into our triple platforms and systems to prepare IVL for future. And you can see that this will translate into an EBITDA of $2.8 billion to $3 billion. Let's deep dive into the 3 business segments. Let's move to the next slide, please. Combined PET, which is a flagship of the IVL. Let's move to the next slide. What is the characteristics of this business? I think Mr. Lohia explained to you, PET has undoubtedly recognized as a material of choice in fight for sustainability because of 100% circularity and the new application, thermal-forming, all this growth is robust and likely today, as we step in, the markets are extremely tight. The availability is not there of the product. Our unique global footprint, high level of integration and diverse product portfolio enables to achieve attractive premium. As you know, we operate in the Western markets, where we can price the product based on the alternative. What is alternative? It's import parity, which is defined as Asian prices, plus trade, plus duty. And we are integrated. So our raw material is local, and that's where we attract the higher premium over the Asian benchmark. And that's the success story. Our decision to scale up recycling was timely, enabling us to harness surge in interest. And this, you will see unlocking the value of recycling coming in the next couple of years. Our target ROCE on those investments is about 15%, and that differentiates us from other players. We're well positioned to take advantage of growth opportunities. There's a lot of conversion happening from different plastics to PET because of recyclability. Confident to deliver peak earning in 2022, as I said, we were not able to reset the contract for '21, which were entered in '20. Now in -- for '22, we have reset in '21. So we have a very clear visibility of '22 earning. Followed by steady results, we have normalized that -- the supply chain disruption will get normalized. In spite of that, we are targeting $1.4 billion to $1.5 billion EBITDA by '24, a staggering return on capital employed of 25% to 26%. So that's the key messages about combined PET. This is a very important slide. Move to the next, please. This differentiates the IVL model if I'm an Asian producer or if I'm a global producer. PET business model is based on a high level of integration and proximity to customers due to global local supply chain. Here, you can see a dotted line, which gives the Asian margin. And on the top, what you have is the IVL spread. And you can see the gap being increasing and further increases in '22 as we have reset the contract. And that's where -- and you can see in '22, Western EBITDA market share is 63%, but will translate into EBITDA share of 76%. So 63% volume, contributes 76%, and that's the strength of the Western business. This business model provides a strategic cost advantage, resulting in higher spreads than industrial. And as I mentioned, higher share in the Western markets relatively constant, yet share of EBITDA increased since 2020 progressively and is expected to continue to increase in 2024. So this slide defines you that why I will differentiate from other players because of the global footprint, which we have, and the integration, which we have. Next slide, please. This is a rather important slide. You have heard about the Dual-Control Policy in China, where they have targeted to reduce carbon intensity by 18% from [ 2021 ] and energy intensity by 13.5%. What is it impacting? It is impacting the production of the energy-intensive operations. On the right-hand side, you can see how much polyester chain is located in the red and yellow provinces. 56% of paraxylene capacity, 67% of the PTA capacity and 79% of the polyester capacity. We have seen many plants who have been completed but could not start the production. And that is restricting the supply from China, coupled with supply chain disruption, makes the entire system very, very tight. This Dual Policy -- Control Policy will likely impact China capacity evaluation as some of the newly-built plants will not -- have not yet received the permission. Now this is a big disruptor in the petrochemical industry and the PET world, where we import. Just to remind you, China exports about 3 million tons of PET globally. So this is also improving the supply -- I mean the tightness in the market. Next slide, please. In what industry we operate? Undoubtedly, this is a sunshine industry. PET demand is very resilient. In '95, when it started in Thailand, it was 5,000 tons demand, 7,000 tons. Today, we have 0.5 million tonne demand, which is 8 kilo per capita consumption. So PET demand is very resilient, expected to grow 4.3% in CAGR and 2.8% in CAGR to 2030. Growth outlook is amplified by strong sustainability drive. Recycle market expected to double. You can see the developed world will continue to increase recycled PET. Developing world will be a combination of virgin PET and recycled PET. And virgin PET growth, as I mentioned, will continue to grow, fueled by emerging markets and conversion opportunities from other polymers. We are seeing a lot of projects where there's a conversion happening. Nevertheless, new application and conversion opportunities from different polymers will sustain growth in developed market as well. So we are very excited about this industry as there is going to be a continuous growth in this. Next slide. I think we have presented this slide many times. PET is a material of choice as compared to aluminum and glass. PET is twice more cost competitive. PET also has the lowest carbon footprint. And PET is the most versatile and use for all single and multiple use packaging sites, unlike aluminum and glass, which is typically used for small packs. You can't use can for bigger size bottles. So PET is a material of choice. Next, please. This is the thrust on the recycling. As you can see, we continue to expand the recycling footprint even during endemic, adding new -- 9 new assets. Committed pipeline of 336 kt additional capacity. You can see that small 80 kt that is also going to be get committed as India has recently allowed bottle to bottle. We are waiting for the final approval from the Indian government, and that will open up in a very large market. And as we mentioned, we'll be going to 1.5 million tons of recycling capacity as disclosed by Mr. Lohia. Next, please. Best innovation. Innovation in PET, innovation enables advancement into addressable market supporting the growth outlook for PET. Opportunities actively exclude in soft drinks. Juice, beer and dairy leveraging not only [indiscernible], but also recycled PET products to meet evolving customer needs. So a strong growth potential expected for thermoforming. Thermoforming growth in China in '21 has been in excess of 25%, which is significantly below developed market for sheet consumption. So we are going to see an exclusion because of this pandemic. The food get impacted. The feed is replacing polystyrene and several other products. So it is a -- PET is a very high growth market. Next slide, please. Just covering on some other products. We are also actively pursuing growth opportunities in our adjacency business, in NDC opportunities to grow in application, expected to have a high growth rate. I mean people having buying iPhones, this goes on the iPhone screens, solar, electronic and medical appliances. Specialty polymers also present growth opportunities. And as you know, in IPA, we are the only producer in Europe. And also in U.S., one of the largest producers. So a very unique position on PIA in high-growth market. Packaging. I think we have a -- next slide, please. Can we move to the next slide? Yes. So in Packaging, we have recently completed the latest acquisition in Vietnam. This is a footprint, which we have in different countries, a very strong business. We have a first, second or third place by share of market in each country, continuously strategy to expand in emerging markets, expand into packaging for adjacency products in home care, pharma, beauty and personal care, very strong. And we have a leading position in some markets. We'll continue to grow in some of the African continents. There, we don't want to compete with our customers like in Europe and United States. Next. So what is conclusion? In combined PET, in '21, we are 10.8 million tons. We are targeting 12.5 million tons. We are already at the ROCE of 19%, with a $4.4 billion of capital employed. As I said, 2022 will be the peak in terms of getting a big increase in profitability, benefiting from the supply tightness. The first quarter integrated margins are already very high, and we have reset the contract in the Western markets. And higher margin from recycled PET and specialty polymer, strong demand, as well as operating rates are expected to sustain performance up to 2024. And you can see on the slide how the recycling EBITDA slides of the overall EBITDA as well as Packaging. So very strong delivery will be there in combined PET. Let's go to the next slide. Now let's go into another very interesting IOD section, where we went in 2011 in the U.S. with the shale gas play. With the Oxiteno acquisition, IOD emerges as a global leader in surfactants, undoubtedly. And we'll have access to the sustainable feedstock. As I mentioned, Oxiteno acquisition enhances our downstream business because that's the -- when you will get access to the bio feedstock and integration strategy. And we continue to strengthen our core function with Olympus delivery over plan, you will see. And you're always asking about the cracker. I'm very pleased to report that cracker is operating Lake Charles at 75% capacity utilization and has stabilized, which is an upstream integration strategy. And we continue to invest in people capabilities enabling function. And after having a good 2021, we are expecting to grow this to $800 million to $850 million EBITDA, resulting into a double-digit ROCE by 2024. And we'll deep dive into it, how this is going to happen. Next slide. This is a very important slide. There are 2 types of companies in the world. Those who are integrated. This means they make their own purified EO or cracker, like shale or Sasol. We are -- after the Oxiteno, we become into the middle phase that we continue our surfactant expansion. As you can see, we've become the diversified, enhancing proximity to attractive end applications with higher and more stable margins. On the right-hand side, you'll see the specialty, which are high specialty companies, who spend good money on R&D. We are going to use the best of the 2 words, means you have upstream integration benefits and also continue to expand the downstream product portfolio with innovation. And we'll have the icing on the cake with access to the bioethylene in Brazil with Oxiteno acquisition. So we'll continue to innovate and keep moving on the right-hand side of the curve. And that will make IOD business continuously with the leadership position in Americas. Next slide. This shows you the volatility in the business. As you can see in the bottom, the downstream first is 72% of the contribution margin, and that's where the focus is where there is a low variability of the COMA, on the right-hand side, you can see. And below is upstream where the ethylene, glycol and MTBE, where the volatility is high, but it is must because you are upstream integrated and which is needed for reliable captive supply and to capture broader value chain margin. And so as we go into Oxiteno, we are much more integrated. We are much more downstream focus, where the 72% of contribution margin will come out from downstream businesses, which serves very important home and personal care, crop solutions, coatings and resources. Next slide, please. This is an -- overall more than 6,000 products across end markets in IOD. I think that's why -- we just wanted to give what IOD means. Our current product already continues to better the words, surfactants improve cleaning power of laundry and detergents, reducing energy and water usage and shortening wash cycle, surfactants improve cleaning efficiencies of surface cleaners. Surfactants help optimize dispersion and reduce amount of active ingredients. [ Ethylenes ], which we produce, which also Brazil produces, forms the building blocks for insecticides and herbicides as agriculture economy is significantly improving. EOA and LAB, linear alkyl benzene, and corrosion inhibitors and lube additive help increase lifetime of equipments improving [ environment ]. So these are very, very important products, which we have. We're looking into many opportunities for future growth in our IOD platform. One is carbon capture and use for ethylene carbonate. Ethylene carbonate goes for the electrical batteries. And you know this is the area, which is rapidly growing because of electrical vehicles. Bioethylene feedstock, as I mentioned, Polyols and I have no doubt that after Oxiteno acquisition, which is expected to be completed by March end, we have more, not less future growth opportunities, a lot of opportunities, which are available to the segment. Next slide. We see a strong value in combining IOD and Oxiteno to a global leader in surfactants. As you can see, we are expecting a synergy benefits of $100 million. This is in form of cross-selling. They are very good in ag chemicals. We are good in mining, all those cross synergies and innovation platform. We are well on track for time, closing the engagement from all teams with a clear team and plan, a new concept, which we have done, and how to unlock the synergy. We have done the clean team concept, where before the closing, the -- as you know, because when [indiscernible] you can't share more information, but they start this clean team led by a consultant. They work on what are the 100 days plan and which we'll roll out. So unlock the synergy quicker than later. And we are very excited about this acquisition. Next slide. I think R&D is very, very important. Our combined capabilities, innovation, R&D and sustainable solutions will be a platform for future growth. Increased customer proximity will allow us to strengthen our relationships. Oxiteno's access to the bio-based ethylene feedstock and sustainable product leap us forward in our journey, and this is sustainable requirement. And Oxiteno's digital label lab -- they have a digital lab. We must admit that they are much ahead in innovation. It'll also accelerate our capacity buildup and very complementary R&D capabilities reinforcing each other's strength. So that will be a fantastic manage of the 2 companies. Next slide. I think -- let's talk a little bit about the MEG. Naturally, the oil has gone up to $90 a barrel. We play a shale gas advantage. So you can see on the left-hand side, U.S. integrated MEG spreads benefits from the MEG, which is predominantly based from naphtha. MTBE margin, you can see on the right-hand side, as the [ crude ] is improving. There's a lot of purpose-made MTBE. The purpose-made MTBE is butane. In Europe, the production is reduced because of high energy costs, and we are already seeing MTBE margin. As you can see, a small dot there in January where the MTBE margins have strongly started recovering. And this will be the -- a very important development and you can -- you will see in the earnings, which will be coming in the quarter -- coming quarters where the MTBE margins have strongly improved. And as Mobility also starts to improve, with higher vaccination rate, we see upside on the MTBE. MTBE, there's a lot of tightness. Similarly MEG, coal-based MEG, because of the dual policy, the reduction -- there's a production reduction and MEG is predominantly made from naphtha. So excited about this margin recovery in these 2 verticals where we could not unlock in 2022. Next, please. We continue to strengthen the fundamental [ poor ] functions in addition to growth and market recovery and Olympus. As you can see, we have over delivered and further increased our already ambitious Olympus target. Going forward, we'll leverage our experience with advanced digital tools, whether it is manufacturing, machine learning or the commercial excellence, and as an example, risk management and asset-backed trading to strengthen the commercial function. And as we merge Oxiteno, there is always a learning from every acquisition, which we had in the past and will further improve our product optimization and continue to deliver on the Olympus. And you will certainly see this slide building up as you will see more opportunities in Olympus, in Oxiteno also. Next slide. So in conclusion, '20 was a year, which got impacted due to low crude oil, low MEG margins, low MTBE margins, a lot of natural disruption. In '21, we are nearly $400 million, and we are targeting about $800 million to $850 million by 2024. Simple mathematics, $400 million. You add the Lake Charles cracker, which will deliver $60 million to $80 million, depending on the crack margins. You have $200 million coming from Oxiteno, and you have $100 million of synergy benefits, so $780 million. And then you have operating rates of existing plants going up because still '21 was not impacted. And if the crude -- the way crude is moving up, I have no doubt the shale gas advantage will unlock further. So the volume, which we are targeting, including Oxiteno, is 3.5 million tons, return on capital employed about 10% to 11%, and net capital employed is $4.5 billion. As you know, the investments in the petrochemicals is not happening right now. The new crackers are not getting built. And naturally, this creates a gap between supply chain. So very excited about our IOD business. Next. So let's go into the Fibers. Move to the next slide, please. Fiber business, we are on track to deliver the Olympus, achieve 15% ROCE by 2024. We are already at 130 million Olympus, which we have delivered on the full transformation by 2021. You are all aware, Mobility got impacted, particularly our airbag yarn business, from chip shortage. Tesla announced that they will reduce the chips in some of their cars, but we expect that this production starts recovering in 2022. Lifestyle, I'm very happy to report that the full potential EBITDA jump achieved, and we'll talk about it in a future slide. Hygiene has come to a new normal after the COVID peak, setting a new normal. We are expanding. We are putting a line in Russia. And we are very confident that Fiber will achieve a full potential EBITDA of $500 million to $600 million, our ROCE of 15% and preparing our platform for next cycle of growth as we have a lot of barrier to entry. So very important key messages on the Fiber business. Next slide. As you know, our Fiber business is broken down into 3 empowered verticals. I mentioned 1 of the 4 airbags across the world is made by IVL airbags, 1 in 2 premium diapers across the world made from our non-woven fibers, and we lead the polyester fiber market in geographies. What is common across all these verticals that we are touching. People's every day's lives in critical situation, our products provide safety, enable performance and can be relied upon. You entrust your life with the tires because you want to make sure that tires are good. And as -- and you can see in the Hygiene, adult incontinence as aging population will need more diapers. And clothing, polyester is the wonderful fiber as compared to any other fiber. What cuts across all these 3 verticals is the Mobility that they are [ breached ] by robust megatrends. The installed worldwide car parc continues to grow, while the focus on safety intensifies. Lifestyle rising middle class population. Hygiene, the change in the behavior of the people, awareness for hygiene, comfort and well-being and which is new normal. As you know, you will -- I don't know if the face masks will go for the next few years because people want to be very careful. So it is the quality of our products, our R&D strength and the services level we can provide as local suppliers. So a very, very strong platform, which we have in the Fiber. Next slide. Last year, we presented to you an ambitious plan entered around the Olympus program, and there was a lot of speculation that where are we heading. I'm very pleased to report that the fiber team has delivered in time full at $130 million. And this is despite the major challenges on our operations, such as COVID, semiconductor shortages, which we had, supply chain disruption happened, our plants in India got stopped because of COVID. Now that's behind us. We have suffered. And through agile management, our teams have managed to work around these challenges, capture opportunities and ensure that we stay on track. And we won't stop there. This is a firm plan of Olympus. We are targeting to deliver $250 million by '23. And actually, pipeline has improved and which will go up to $270 million. And this cuts across many sales, excellence, operational excellence, everything. It's not one and we don't [ count ] here onetime savings. Next slide. This is a good example of what we did. Last year, we presented to you one of the ambitious initiatives that make up our Olympus program, the restructuring of our European PET [indiscernible] footprint. That's basically optimizing the entire sites in Europe. We rightsize and turn around the Longlaville. Longlaville, which was a loss-making, has turned into a positive EBITDA. Refocus Obernburg in Germany on airbag and fine deniers. We've moved the facility to Senica on to become an industrial application and leveraging Kordarna as a conversion hub. And even in Mexico -- I'm not ending here, but in Mexico, we are seeing strong results, where we can leverage on our value chain margin, as you know, we make the PTA. So this is just an example to you that how European footprint connection is progressing despite the headwinds in the Mobility division. And that's what is resulting into a better profitability. Next slide, please. As I mentioned, 2021 has not been a good year for the automotive because, as you can see in the bottom slide, the number of cars sold were lost -- less because of semiconductor shortages. But the secondhand car prices have gone up. It's actually the replacement tires, demand was very, very strong. Our Chinese plant, Kaiping, ran very strongly. And I was told that before you sell your second-hand car, you want to change the tires so that the car looks better. And naturally, in airbag, there's a lot of movement in the safety. Recently, India has announced increase in the number of airbags. So this will boost our airbag business, which can also rely on ever-increasing focus on the safety. And so we are excited about this. We are exploring to put up an airbag yarn plant in India, which is not considered in this '24 business plan yet. So there's a strong recovery expected in the Mobility business with the Olympus track. Next, please. Lifestyle, I think a very good recovery. Our Lifestyle business has been a fantastic jump in EBITDA, driven by successful delivery of our Olympus program. On the right, you see a particular India, where we have strongly recovered by high operating rate. How we have done this? Increase of production of high value-added products like DTY, POY, balancing of customer footprint, resulting in higher volume at a better mix and capturing the local margin. India is consolidating -- industry is consolidating a lot of opportunities, and this has been achieved in spite of COVID-related shutdowns. As you know, we have a state of plant in Indonesia, and this also -- this got reversely impacted because of high pace because we export from Asia. So Lifestyle is a very exciting turnaround. And with Olympus initiative, with the major CapExs, which we are doing, we'll make the targeted EBITDA in 2024. Next, please. The Hygiene industry had created phenomenal value for the world in 2020, helping people to stay safe. I mean this has been very important. We see a peak of the earning in '20 with a strong demand for face mask came. And this has shown exceptional financial results of the industry, especially during the 6 months of the crisis. Now 2021 shown -- has shown a new normal. In the case of a [ non-woven ] business, average COMA has normalized, but 5% higher than the previous. We had a lag loss, as you know, because of higher polypropylene price, which will get recovered in '22 as polypropylene prices are getting normalized. And with consumer awareness on the rise comes, hygiene is the new norm and continue to be a very, very strong demand. And this combined with a robust megatrend, such as population growth, rising middle classes, hedging population make us confident about the feature of this Hygiene business. Next slide. You may be thinking that what is the investment plans? We are really putting a lot of money. Our portfolio has proven the resiliency as demonstrated by the strength of our replacement business when investing in Mexico to improve. We are putting a line in Russia for $70 million. All these investments are in pipeline. We completed the plant -- the investment in [ Knoxville ] in U.S. for fiber. So in total, we are putting $250 million across 5 years, since 2020. And most of these investments are geared towards higher value-added products. Also note that there are brownfield expansion. India, we are expanding it, and you can see on the right bottom here, and you can see the paybacks. So this is not that this increase in EBITDA is only coming from Olympus, it's coming from new investments and for capturing more better value-added products. Next, please. So we are strengthening our fiber platforms not only through Olympus and growth CapEx, we are systematically investing and strengthening our people, organization and capabilities with intensifying demand for sustainability and circularity that is founded in consumer interest and increasingly picked up by our customers. And we continue to build those capabilities. That is why we decided to investment in the development of a world-class innovation engine, centrally controlled innovation funds to ensure disciplined allocation, full focus on customers' future needs, creating partnership with the customers, next level innovation, and circularity is not only in the PET. Today, the [indiscernible] these worlds are looking for the [ apparels ] made from the recycled fiber. So that's where the 2 businesses also connect. And we are intent to invest and capture the emerging opportunities, building a strengthened and advantaged platform. So sustainability is a big driver even in Fiber business. Next slide. This is just an example -- next slide, please. Yes. This is just, in fact, journey towards a world-class innovation engine, producing game-changing innovation has already started. You can see some examples here. You can see some examples here, polymaterial which [indiscernible] to have biodegradable polypropylene. What it means that when you throw away the diapers, if it biodegrades, that gets distinction from the others. At the last CMD, we also introduced to you our plan to explore the -- this is what we have talked about, the polypropylene. Since then, this partnership has resulted in first prototype that already satisfied the British Standard Institutes criteria for biodegradability. Well, there's a lot of work still to be done in the innovation, but innovation will be the driver in our Fiber business. Next, please. So what does it translate into? I can see a significant improvement in 2021. We are about $300 million. You saw the $250 million being invested. Olympus program improves the performance, and we're targeting $550 million to $600 million by 2024, a volume of 2.2%. So there's a volume increase from 1.7% to 2.2% coming from higher operating rates, expansions, new investments, which we are doing in Russia, India and the targeted return on capital employed is about 15% to 16% on a net capital implied of $2.6 billion. So very exciting business in the Fiber. So this wraps up the 3 business verticals. Let's go to the finance. Well, a disciplined balance sheet is very important, just recapping the first slide, what it will translate into, 2021 will soon come out with the official results. We have core EBITDA is $1.8 billion in spite of so much COVID issues, national calamities. We expect reported EBITDA with $2 billion because as the crude goes up, we have inventory gain. We unlocked $290 million of Olympus and return on capital of 12.2%. You can see in the graph, '22 will be a very strong year. And for '24, we are expecting good EBITDA of $2.8 billion to $3 billion unlocking the Olympus initiatives. So very excited about these financial results, and they are all formed of projects, no speculative addition of the capacity. Next, please. It's important. You would like to say, well, how 1.8% is going to be 2.8%, probably you had the same question last year, now it's going to go from 1% to 1.8%. Look at here, 1.8% to 2.8% has 4 buckets. Margin expansion is $130 million. This is because of Western markets, which we have reset. I told you, '22 will have a spike, but then you have -- we are normalizing back into '23, '24, assuming that supply chain will get normalized. Improved product mix, innovation and product development, which we are continuously driving across. Olympus, which is cutting across operational excellence, cost transformation, resetting organized [indiscernible] perform with all pipeline of the initiatives, $370 million, and organic growth means higher operating rates, default linking of some of the assets, one line we are putting in India into PET and double-digit CAGR for -- we have invested in recycling, still the return have -- as we are completing the projects, you will see those results coming into '22 onwards, and that's going to add $180 million. And 4 important projects, Oxiteno $200 million, synergy benefits of Oxiteno, recycling Indorama Synthetics India expansion and Avgol Russia. So very -- all projects are firm, and that's what translates into $2.8 billion to $3 billion. Next slide, please. So what does it translate in cumulatively 3 years? We have $6 billion roughly about operating cash flow. We have maintenance CapEx of $1.2 billion and free cash flow in the range of $5.4 billion. We talk about the strategic investments of $3 billion, which includes Oxiteno and the sustainability investment and deleverages the balance sheet. We still like to follow the policy of 30% of the profit distribution, reward the shareholders, expected dividends in next 3 years, cumulatively, 1.1%. So very, very strong cash flows and that's what it translates into the deleveraging the balance sheet and providing for the future growth of the company. Next, please. In this world of interest regime where the interests are increasing, rates are increasing, we did a very smart move of locking in the fixed interest rate. 65% of our loans are with the fixed interest rate, very important. As we deleveraged, we deleverage the floating one, 35% is on the floating rate basis. You can see the debt service coverage ratio, very strong. The lighter blue shows you the debentures, which will get refinanced. Actually, we are targeting THB 10 billion debenture issue before the yield curve of Thailand runs away more. And you can see on the right-hand side how the debt cost has continuously come down and 17 basis points. And that is a very important risk management at the time when the interest rates are moving up. Next slide. What it translates into debt equity. First quarter ending will be 1.18 roughly. As you can see, with deleverage. We -- our high leverage was when we completed the Huntsman acquisition, a lot of speculation about whether we're going to increase the capital. We peaked at 1.4 when the Oxiteno acquisition gets completed. There's $150 million deferred payment. And then we strongly deleverage 2.6. This is including Oxiteno debt and the CapEx plans, which we have made from '22 to '24, which is a significant cash flow. So the company is well positioned for further future growth, as Mr. Lohia rolled out in 2030 vision. Next, please. Well, that wraps up my presentation. I know it shoot the 40 minutes. Same summary, very strong business model, leader in sustainability, Olympus ahead of the plan, investing in people, making next generation, then how do we make a $15 billion company to a $30 billion company. And remain focused on return on capital employed with disciplined capital allocation and a strong free cash flow. So thank you very much for patient hearing, and now we can take up your questions. Thank you.

Thank you, Mr. Lohia and Mr. Agarwal. So we open up for Q&A.

Can we have all the panelists on the screen, please? [Operator Instructions] So can we have all the panels, please, on the screen. While we are waiting for the questions. There's 1 question which is in the chat box, and I'll just pick that question. It's from Khun Komsun. So he's saying for IVL sustainable journey, what is your split by 2030 in terms of mechanical, chemical recycling and green polymer business biomass? So that's the question from Khun Komsun.

Thanks, Vikash. Can you put up the slide on the assumptions for our 2030 finance? On that, we have the breakup of the capital allocation between biomass investments and recycling investments. So when I think of the recycling investments, I'm still thinking mechanical at 3 million tons with the investment of about $2.8 billion. And the biomass includes chemical recycling at $4.4 billion with output of about 2.4 million tons. So the split, as you can understand, this is a very high level at this moment, but chemical recycling and biomass recycling are clubbed together in our analysis whereas mechanical recycling is at 3 million tons. That is to answer Khun Komsun's question.

I can see some hands are raised. But just before that, Kunmaria, do you want to speak your question from Maybank. [Operator Instructions]

Okay. Yes, for knowledge sharing since you are very close to the ground and interact with a lot of multinationals. What is the situation on the logistics issues under disruption that you can share with us on the ground. And the second thing is this one is pertinent to IVL. I am seeing the global PMI to start to go down and in the latest data, China has entered the construction periphery. I'm just wondering what is this going to mean to IVL's businesses in Asia and also possible knock-on effect in other parts of the world?

D. K. Did you want to take that, please?

Thank you. Thank you for asking that question. So logistic disruption, there are 4 parts of this. One is the capacity in terms of containers and capacity in terms of shipping. I mean, if Vikash, you can bring that slide. And the second is the congestion at the port because of the last mile delivery infrastructure is not available. Today, we have in Los Angeles congestion going up to 40 days. This disruption, there's capacity coming in, but this disruption has continued to remain at least for '22 as per whatever studies we have done. It is -- you are running into the labor shortages today, even at the ports is difficult to find. And then if you have COVID then it gets worse because then you have people getting in isolation. So logistic disruption will continue to remain there. The container freights are strong, and we will continue, of course, that's why we reset the contract in '22. Customers are looking for product. Customers are not looking for what's the pricing it is. They want reliable supply of the products, and that's where we benefit in all our businesses with the PET and you saw these are strong results. We have assumed normalization in '23. That's why we have brought down the profitability in '23. On the PMI, yes, there is a contraction going in China. It's a combination -- there is a prediction that GDP growth will be slowed down. But as you know, our exposure to China is quite limited in terms of EBITDA percentage in the larger picture. We are talking about only 4% to 5% coming from China. It's not a significant portion. Whether there will be a knock-on effect of this in the rest of the world, I doubt India has come out with their latest budget, very strong growth is predicted by India. Many parts in the world. U.S., you have seen largest economy registering fourth quarter strong growth. We are extremely not worried -- and we are not worried. And particularly, when we look at our products, which touch the lives of the people, and I think that you saw in the resiliency of our product portfolio in '20 when GDP was negative, where growth was positive. In '21, we have seen strong. So I won't be worried at this stage about any demand or knock in effect if the PMI goes down. And if Chinese exports goes down, that further -- which restricts because of the policies. So I won't be worried in the product portfolio, which we operate. And you have seen crude oil. Crude oil is moving up, I mean, people are saying that it may go up to $100 a barrel. I mean, a few months back, somebody said, I was surprised. And you can see $90 a barrel. So -- and we get the -- shell gets advantage. So I won't be worried about that.

Thank you, Kunmaria. I can see Kun Poom from Credit Suisse. [Operator Instructions]

Okay. Few questions can I ask them one by one?

Yes, please go ahead.

Okay. The first question is on oil price assumption. I looked at your guidance for EBITDA. I'm just wondering what is the assumption that you have behind these numbers? For the oil price, yes.

Kun Poom, you want to complete your questions on the oil. Our business plan is based on $75 oil across '22, '23 and '24.

Okay. Okay. And the second question is on the CapEx plan on recycling. The -- target, like if we fit it in the PET demand, rPET demand. What's that 3 million-ton represent? And can you like give us some indication of the return on investments on these recycling and decarbonization efforts, like whether it's something that we can expect like sensible return from it?

Yes, Kun Poom. So on the recycling, again, maybe Vikash, you can show the slide in the CPET deck on the virgin and recycled. So as far as the return is concert Kun Poom, we are taking a 7-year payback for our investments, both on mechanical recycling as well as from biomass or chemical recycling. So that is based on our current understanding of the appetite by the market, by the brand owners to implement recycled products within that portfolio. So the larger question is the availability of the bales to increase the CAGR growth of recycled, which in D. K.'s presentation, he's taken at 6% -- this is something that has been deliberated within IVL. The total growth of 2.8%, let's say, is conservative. But the recycle growth rate, which was 10% for the last 5 years, will it be lower at 6% or grow at the same rate of 10%? If it grows at a rate of 10% then the Western share of virgin growth will drop from 1.5% to practically 0. So this is a big range in our mind. What I'm taking is for my Vision 2030, I'm taking a -- how do you call it, safe -- safety play. But if we can provide more recycled content to our brand owners to our customers, then they would appreciate that instead of virgin PET. So in my vision statement and in D.K.'s presentation, there is this gap. I take 0 growth for virgin growth in the West and 10% growth of recycled. So this is something that between business and strategy is something of a deliberation. And I don't think we know as yet where exactly we are going. But the way I would like you all to think of the Vision 2030 is that it is directional. It was a way for me to understand what are the free cash flows that the business can generate. And how would we do the capital allocation. And the key message is that I believe more than 1/3 of the capital allocation going forward would go towards sustainability and climate.

Okay. Can I have like one last question on Fiber business? Perhaps I can ask Chris. Yes, perhaps if I can ask, Chris. D.K. has mentioned that innovation will be the driver of the Fiber business. Can you maybe elaborate on that, please, as to like what the effects are.

Sure. I'd -- thank you. So everyone here in Thailand and hello to everyone around the world. Yes, thanks for the question. I guess -- it's a topic that's important to our business. It's certainly a passion point for mine. And why do I think it is a growth driver we feel that because the customer requirements that we see, which is driven by the consumer needs by the macro trends that D.K. referred to demand. The world is changing, the expectations of customers are changing, and we've got to make sure that we are in front of that. So to give you an example, when we collaborate or ideate with our customers around the world, we're innovating around these core consumer needs. We're not just talking to our customers about what we produce. In mobility, for example, we're talking about material that drives performance and safety lifestyle. We're not just delivering fibers and filaments, our customers are asking for fashion with functionality, particularly in the sustainable world, which we're living in. And the same with Hygiene. If you think about those products, diapers, feminine care, it is all about well-being and comfort. So that's why it's important. There is a demand. If you -- if I just raise a couple of examples that we're working on and how we're maximizing our material science, mobility, we're working on something we call X-Cord. So that's a new hybrid tire cord. And I think you can see that in the top left-hand corner. But why are we doing that? What the customer is demanding there is lightweight cord with low rolling resistance. And why are they asking for that? Well, with the emergence of the electric vehicles, the consumers need to prevent noise and nuisance in otherwise, what is the silent car. In Lifestyle, you can see in the bottom middle, we talk about iCare, which is our heavy metal-free Fine yarn. What are the customers seeking there? They're seeking in this case, improved fabrics with sustainability and performance. And the consumers are demanding safer, toxic free apparel from their leading brands. So it's not just what we're delivering. It's the why. In Hygiene, I think a great one is the next-gen liquid management for the diapers. This is an area where the customers need that balance of cost and performance. And as parents of babies who are using diapers, what do they need? They need that comfortable, leakproof, diaper and overnight protection. So these needs, these fundamental needs are forever changing, and we play a really important role in that. My final point, I would say in innovation and our approach to innovation is we're humble enough to know that we can't do this on our own. That's why a major part of our innovation plan is to be seeking out technology partners. D. K. referred to what we're doing in Russia with Reicofil, which enables us to develop and introduce new applications into the market, higher value-added applications into the market. But we're it gets really exciting is where we're partnering up with young entrepreneurs, young start-ups. Polymateria, which was the example used is one of those. It's where we combine these -- the scale of idea with great ideas, and we incubate those ideas and bring them to the market. And that's exciting for our future. We have a saying in Fibers, our goal is not just to be market leader. We've got to lead the market. And that's why innovation is so important to us. We're underway. We've got a lot to do but I think with our pipeline and what we're building into that pipeline, we should have a lot of confidence. So thanks for asking the question. It's really important to our business and our future.

Thank you, Chris, Kun Poom. Do you have any more questions, Poom? So [ Kun Yupapan ] from Thanachart. [Operator Instructions]

I also have a few questions. I may ask for the first question first. It seemed like project Olympus is quite important for Fiber segment. Can you give more -- give me more color on your plan and the progress so far?

Sure. Thank you for the question. If you -- for those of you who were in last year, CMD, I did put a lot of importance of the Olympus program and also flagged some very ambitious gains we had. As D. K. mentioned, I'm pleased to say we're on track. Plan '21 achieved -- and when you look at our outlook for '23, as I sit here today, I actually think there's some upside. So D. K. covered the numbers, I think, very well. They're impressive. But something I am proud of what the Fiber segment and Fiber's management and team did this year was not just what they delivered, but how they delivered it. And there's some fundamentals in that tracking activities. We had over 14 -- we have over 1,400 activities within our program. So ensuring we track early identification of risks and opportunities. Nothing ever goes directly to plan. There will always be slippage, a change in assumptions. But what the management team have done is built in a way of working that identifies how to mitigate risks and capitalize on the opportunities. And I truly believe that's why we delivered the plan in full in 2021. And it's what gives me confidence in going forward. Each of our verticals has a fully-embedded project management office, partnering extremely well with the global transformation office. Two final highlights. Manufacturing excellence played an incredible role in '21's delivery. Delivering over half of that -- of those efficiency gains. And what -- how does that come to life? The team were able to reduce, as an example, our nonconformity costs by between 13% and 15%. So what's that? That's improving our quality and reducing waste. And what does that mean? That means our plants are running better, greater profitability and a more satisfied customer at the end of the day. And we're going to continue to invest. We're investing in strategic and commercial capabilities, which will only build on the platform we've got today. So great start. We're on track, and I think the outlook is bright. Thanks. Thank you for the question.

Okay. My next question is that [indiscernible] become a very important part of your company. I just wonder as an outsider, how should we track performance of this business? Or should I just assume that this will be like a steady business with like a fixed and high margin? Or how should they view this business going forward?

Maybe you can put the slide on the left side to right side moving from commodity to specialty. And Alastair, if you can please cover that?

Sure, and thank you for the question. Do you have the slide? Slide 26? As we're looking for the slide. As D. K. mentioned, if you look at the surfactant part of the business that we've got, it's growing significantly. And if you think about all of the HVA type processes in our business, it's now almost 70% of our business portfolio. Good margins, I would say, 15% to 20% of where we are today. What we're looking to do is we see ourselves very much today on the left-hand side of this chart. So our main competitors would be the Shell's and the Sasol's, highly integrated, I guess, low-margin products, large volumes but they'll make whatever anybody asked them to make. And a lot of our portfolios like that today. But we do have a specialty arm with some very, very sticky products, which I'll come to in a minute. With Oxiteno, they're slightly further to the right. So they have a good integration. They're the biggest in Brazil, as you know. But they have a very much larger R&D presence and a larger presence on some of the key markets that we're looking at. You just see them on the right, the home and personal care, the crop solutions and the coatings and resources. So the way we're looking at this is if we combine their knowledge of crop solutions, for example, and their knowledge of personal care with our knowledge of home care and our knowledge of resources, mining and oil build, et cetera, we're going to have a pretty important combination of some pretty sticky products. So what I would say is we're not walking away from any large volume, good margin products, 10% to 20% products in that portfolio. As D. K. mentioned, very low volatility, very good margins, and we're not walking away from that business. But what we are stepping into is more of the specialty products, more of the sticky products, more of the price formulated products, which we think will have higher margins, and we're pushing more to the right. So you see them more the 20% to 30% to 40% margin products. And we do have some of those today. And Oxiteno also have some of those today. And the question we've got is how do we make more of them? How do we make them more relevant to our customers, as Chris said. And how do we expand those products globally? We're going to be very Americas-centric and there's no -- nothing bad about that. They're very good, stable markets. But then how do we take those products globally into India, into Asia and into Europe? And that pushes us more -- much more to the right in terms of the [indiscernible] that make similar products but make them more sticky, more relevant to the customers. So I think that's what you're going to see, not across the whole portfolio, but maybe across 20%, 30% of the portfolio you see pushing to the right in the coming years.

And Alastair, if I can add, we do have capacity. So the utilization rates are in Oxiteno, let's say there's enough room. And Oxiteno's business in Pasadena is still not fully loaded. So we do have the capacity within the IOD to take on more business.

That's a great point. And one of the exercises we're doing with Oxiteno on the clean team at the moment is because we'll become the largest of [indiscernible] in the Americas with a lot of capability there. It's where do you make the right products in the right place local to the customers, local to the markets. But -- so you're not swapping and changing on the reactors and the equipment. So that in itself will unlock a lot more capacity within the joint business going forward. So it's pretty exciting to look at it.

My last question would be like your assumption regarding the EBITDA target in 2024. What are like your PET spread, or like MTBE, MEG spread you are assuming? Is it going to drive only like by margin or mainly because of the volume expansion?

I think, Vikash, you have a backup slide on that assumptions. And D. K. can talk through that, I guess?

Yes. I think, as we mentioned, the assumption of the crude oil price is $75 a barrel. Naturally, we have been conservative in our MTBE spreads in the '24. Today, as the crude oil has become $90 a barrel. As I showed you, the MTBE margins are quite strong purpose-made MTV is not there. So certainly, if these margins hold, there is upside on it. Similarly, MEG becomes -- when you take MEG, we make MEG from ethane while the MEG pricing is based on naphtha-based economics because the majority of that is naphtha-based. So here, you can see the assumption of the slide and which is very important, you can see the PTA spread, so crude assumption is $75 a barrel. PTA spread we have taken lower. And as you know, we are not in a merchant PTA spread in a big way. PTA spread, so you see the integrated PTA spread considered for '22 is 234. And as I speak to you in first quarter is about 280, 290. So it's very conservative assumptions, 234, 218, 212. MTBE factor assumption is 178, 261, 268. As expected today, it is about -- I mean, as February started and the crude has started jumping up, it's already at 260, 270. And which is in the -- in terms of U.S. MEG integrated margin, which is ethane to MEG, we have assumed 5.5, 5.8 and 5.72 percent margins are higher. So if growth remains higher than 75. Naturally, MTB, MEG, both margins get a positive impact, and we have been conservative in forecasting the integrated PET spreads. And as you know, we have a buildup of premium on that. So that hopefully gives you an idea how this forecast have been built on.

Just to share additionally D.K. -- sorry, Kun Yupapan. Every dollar of crude oil has an impact of $6 million to $7 million positive -- so plus $1 crude oil is $6 million plus EBITDA for IVR. Go ahead Kun Yupapan.

Sorry, how about PET assumption?

Sorry?

Sorry, how about with PET spread assumption? Like do you think that the premium over Asia will hold over the next 5 years or should peak this year? And how that -- you'll see the benefit going forward after that the container shortage are easing?

I think on the CPET slide, there is a slide on that...

So before the slide is put, let's explain this in 2 parts. '22 is all locked in contracts, okay, whether it is PET, PTA, everything is locked in. We have assumed that '23 the container freights will ease out. But actually, as you know, there's a lot of consolidation of shipping industry. The investments have slowed down -- and that's why you can see here the premium we have reduced from 23% to 24%. As '22 is the highest. And that -- of course, it will not roll back to the original level of freight because as high crude oil also puts some oil costs higher. So we have rolled down the premiums as reflected here. And naturally, our Western market percentage, you can see that we have reduced EBITDA percentage also. So this is just to give you an idea how we have built into our forecast of '23, '24. So '22, we are assuming it's a peak here. And the rest of the earning in '23, '24 comes from extra volumes, our Olympus program, we are converting 1 line in India to PET, we are debottlenecking some of the other assets. I think Kun Poom asked about recycling. Recycling will result into -- we are targeting 12% to 15% ROCE as we have now expanded them, brought them to scale, flat to PT. So all that will get unlocked in the next 2 years. So that's the assumption, the conservative assumption, if I can summarize.

Thank you. Sumedh, I can see you have raised your hand. Can you ask a question?

Yes. I had 3 questions. So firstly, I just want to understand with respect to your 2030 target of recycled PET of 3.1 million tons. Does it assume that IVL gains global market share in PET? And I asked this because already we have 25% market share in virgin PET, right? So if 3 million tons recycled PET comes out of 6 million tons demand that we see in the chart. Does that mean that there is a gain in overall market share? Or does that mean that recycled market share is gained or at the expense of virgin? So let me start with my first question, and I'll ask a couple of questions later.

Yes. Let me answer that. So I think we have a slide on what our customers are targeting. And by 2030, most of our customers are seeking a 50% recycled content or renewable content in the product mix. So for me, that becomes my aspiration. So we have 6 million tons of virgin and if we put 3 million tons of recycled content, and it will vary from region to region. So in Europe, we should be aiming for 30%, 40% recycled content in our PET. In the U.S., we should be aiming for a similar higher level of content. Whereas in developing and emerging markets, the content will be much lower. So these are aspirational targets. The point is we are looking at what is our free cash flow, where should we deploy it. And in order to deploy it across the recycling world, we'll have to invest in also the value chain and the product value. How do you call it? The supply chain. So how do we enable the collection system? So the investment is not going to be only in recycling, I would think the investment would be across the supply chain in order to help the industry reach those levels of recycled content. So it is abstract, consummate, but it is aspirational. But the way I look at it is that we have the means, do we have the talent and do we have the appetite. So that is what's demonstrated in our 2030 vision. If that sort of directly answers your question.

Yes, it does. It does, actually. Just one thing. I don't have the slide in front of me, but does that mean that overall market share of PET market for IVL will be higher than where it is today?

I think not -- I definitely think so. I definitely hope so because we are going to make these commitments and make these investments. I do hope that our partners across the value chain would see IVL as an engaged partner as well. So we would work together with them across the supply chain on how do we get this product into their system. So definitely -- and when I -- in my presentation in 2030, when we spoke about CPET, it was about enhancing our leadership. So enhancing our leadership in terms of sustainability as well as in market share. I think that will lead to a market share increase.

Sumedh, does that answer your question? Do you have a follow-up question?

I'm sorry, I was on mute. Sorry, I was on mute. So my second question is going into next sort of 9 years, right? Have we -- have IVL identified opportunities for any bolt-on acquisitions? And can you just elaborate to us on what those products could be?

I think the main inspiration Sumedh we are taking is from our current portfolio where in the last 2 years of this pandemic, we have seen resilience in our product portfolio. So I'm very happy with what we have, and I just want to continue to improve on that products that we have. Like Chris mentioned about this fiber portfolio and Alastair mentioned about the specialties in Surfactants. So we'll keep enhancing our portfolio, and we spoke about CPET about the same thing. So what -- how do we cater to what the consumers are seeking through the lenses of our customers? We are a B2B business, but we can become a very strong interesting partner to our customers who have the lenses of what the consumer is seeking. And I think what our portfolio affords is that about 90% of our portfolio can be switched to renewable or recyclable feedstock. And that's where I'm trying to head the company towards. And in that direction, every new opportunity, every new M&A, every new greenfield that we built has to fit into this dimension. So we would not acquire anything, which will hurt our carbonization -- decarbonization story or which will hurt our total GHG emissions. Only if it helps towards our road map where we do those stuff and within these businesses that we have. All these businesses have high growth potential. And I think we have a focused management group. We are making a deep dive into our portfolios, understanding what are the levers that we have including our pricing levers. So there we always have a pipeline of projects that we are looking at. And if you can get comfort is that in our 2024 balance sheet as well. We have a longer-term target of keeping our net debt equity at 1:1 because at that level, our cash flows are sustainable and we create the best ROE. So in 2024, as per the present business plan, our net debt equity will go down to 0.6x, which is low. Therefore, there will be opportunities in the immediate next few years but then rolled out all the way to 2030. If we did nothing, obviously, you will have a very lazy balance sheet. But what we did over the last 2 weeks is we took our Vision 2030 through our business -- through our Board of Directors. We had a 2-day off-site in Phuket. We spent a good quality time with our senior management and our directors running through that. And I think we have confidence from our Board that this is the right way to go forward. Thank you.

Understand. My very last question and just this is mostly a housekeeping question. But in the CapEx plan in 2022 to '24, on Slide 46, does it include the annual maintenance CapEx or it doesn't?

Yes, Vikash can you show. Yes, it can includes maintenance CapEx. It includes all the CapEx's, but let's show the slide again.

So we have shown the maintenance CapEx separate.

You have the EBITDA bridge, right? Yes, this one.

The EBITDA and CapEx earlier. Okay, got it.

Yes, it includes.

Thank you, Sumedh, for those questions. I can see Mayank from Morgan Stanley.

And at this time, it was quite useful of how you are kind of thinking about that road map for the next 8, 9 years. I think a few things, which would help us understand a bit of these numbers and the targets that you have kind of come through. If you can just give us the big picture thinking about -- you talked about the net debt to equity of 1x, et cetera. But can you have some ROE and ROCE targets because that's where I think you have struggled for the past couple of years. So is there a way you can kind of put some numbers around that, that you can help us on how much return expansion do you see in the business because of what you are trying to do around decarbonization because the worry everybody has is decarbonization is lower return kind of a business. So can you just help us understand your thinking around it and the big inorganic growth CapEx that you're trying to do? You say 7 years payback but at the end of the day, I think it has been a struggle for you in the historical times to kind of get that kind of a payback. So can you just give us a broad picture thinking of how you are thinking about it?

Thank you, Mayank. So the way we constructed our 2030 numbers is that, number one, we took 12% ROCE -- no, not 12% ROCE. We took 12% EBITDA margin, which we have achieved in 2021 across '25 to '30. So for our legacy portfolio, let's call it, legacy portfolio. We are not taking the 14%, 15% EBITDA margin that we forecast in '22 to '24 but we take only 12% EBITDA margin that we have achieved in 2021. So that's one conservativeness we have taken. On the organic growth between '25 and '30. Obviously, those are lower CapEx, and these are going to be brownfields and debottlenecking of our existing capacities. Over there, the paybacks are more like 5 years. So the EBITDA margin on those organic growth would be higher than 12%, which on this slide shows that up. But then we looked at our investments. I mentioned, I think, the $600-odd million that we have earmarked for emissions, these are all low-hanging fruits and they have a good solid payback of 4 to 5 years actually. So that was very thrilling to notice from -- and maybe I can ask Yash if he is available, to share a little bit about the decarbonization, $600 million spend and the 4-, 5-year payback that he shared with the Board. Yash, are you there?

Yes, I'm here. Sure. So thanks, Mayank, for the question. We've taken a 360-degree view of our sustainability strategy, and it's broken up into 6 parts. One, and we break it up into Scope 1, Scope 2 and Scope 3. So for Scope 1, we've identified what we call green projects. And for the green projects, these are upgrading our inefficiencies in our existing plants. And for this, we have a guideline of 7-year payback, plus an internal carbon price of $20 per ton. And because -- and as you know, the carbon price, carbon tax in Europe is much higher at the moment. But for our projects, we take that internal carries $20 per ton. And that's what makes these projects more attractive. And with those green projects, we get that payback of 4 to 5 years. Secondly, on the scope 2 side, energy, we're increasing our renewable energy portion, which has no CapEx. At the same time, we're phasing out all of our coal sites starting from 2024 throughout to 2028, depending on the turnaround of those sites. And again, because carbon tax has been announced in the countries, Thailand, India, Indonesia, where we have our coal assets. We've taken that $20 per ton, which is probably still conservative, which gives that payback, and we will be switching from coal to natural gas for biomass. Thirdly, we have our recycling footprint, which I think we've spoken about already. Fourth is our future technologies. So we're looking at carbon capture in our Port Neches IOD site in the U.S., which would -- which is a big impact to our CO2 footprint. You're capturing all of the CO2 from the [indiscernible] gas stack and you will either store it underground or as Mr. Agarwal mentioned, we would convert that into ethylene carbonate for the electric vehicle batteries as well as carbon capture, we're looking at green hydrogen. And for both of these technologies, our strategy going forward would be on partnerships in industrial hubs. So as you know, there are a lot of industrial hubs coming out and a lot of projects being announced on green hydrogen and carbon capture. For carbon capture, we will work with the industrial hub to use the pipelines that are being developed to store carbon that we capture. For green hydrogen, today, we use very little green hydrogen, but the potential there is to replace natural gas. And as you know, green hydrogen has a 0 carbon footprint. And we have 1 project for green hydrogen at the moment in Portugal with 80% subsidy. So with that, that becomes very economically feasible with a 2-year payback. The fifth strategy is on biomass, which is our Scope 3 emissions. And the goal over there is to have 20% of our total feedstocks coming from biomass or through feedstock by 2030? So that's the -- so when we mentioned the $600 million CapEx by 2030, that takes into account all of these sustainability actions with a payback of 5 years.

So Mayank, you're right. The jury is still out on how can the payback would be or if the payback would be at all. But I think we just took -- since we wanted to share with you a high-level objective of where we are heading. So therefore, we have taken a 7-year payback in our assumption. And even for our legacy assets, I think we've taken a 12% EBITDA margin, which is lower than what we expect in our '22 to '24 number. But more on this, I'm very happy to engage with you because this is the last subject and it will require a lot of patience.

Fair enough, sir. I think my second question, I think, was more in terms of the growth CapEx of $2.3 billion that you're kind of spending over the next few years, correct? So I think the message that we are kind of getting is a bit mixed in saying that you are still spending on your legacy businesses. But should we kind of think about that you will no longer be spending money on at least growing the PET side of the value chain or even the value chain in a very, very big way because at the end of the day, you are trying to decarbonize and trying to shift the portfolio. So this $2.3 billion number -- just wanted to get a sense of how you are trying to kind of deploy it over the next few years?

The $2.3 billion deployment is based on the growth rate of those industries. So I believe we have taken 3% growth rate as an average for all the products that we are in. And to keep our market share -- just to maintain our market share, we would invest $2.3 billion to keep our market share basically. Think of it that way. And since that market share of that growth would come from debottlenecking or brownfield expansions. Therefore, the returns would be much better. Much better than the second year. It will be more on 4- to 5-year paybacks. And because you're talking about a long period from '25 to '30, so over 6 years. So maintain our market share because all our products are resilient. We see them all growing. And we at least will keep our market share. And even grow our market share with sustainability with [indiscernible] our products.

Okay. And I think the last question, sir, was more about how are these targets kind of showing up in management KPIs and compensation. Can you just highlight of what you're trying to do there?

Well, we haven't. At the moment, our 2023 targets, which we shared last year, is the KPI for the key management. So for that, there is an LTI in place. At this moment, I'm working with the Board on how to define beyond 2023. So don't be surprised if you hear something soon on '25 or the '27 KPI in the form of [indiscernible] but it's still a work in progress. So to answer your question, there would be KPI and there would be management engagement -- senior management engagement.

I can see Kun Poom, Credit Suisse. Do you have some more questions?

The bucket assumption kind of show, actually, I have 2 questions on it. The MTBE and the U.S. MEG, I noticed that you have assumptions for 2023 and '24, which are above the historical average between 16 to 20. And for the U.S. MEG, in particular, it's actually going in a different direction from Asia. Can you explain the assumptions behind it, please?

Maybe, Alastair, you can take that, please. And remember, the average of '18 to '20 was a lower crude oil versus what we have assumed for the next few years. So that changes the dynamics of our MEG and MTBE business. But please, Alastair, I think there is a slide, which captures that.

Could you put the slide there, please? Yes. So let's look at the history of as to where we've come from. And I think one of fairly low crude oil, '16 to '20, average of $55 there. And I think the other thing you've seen is variable butane and methanol prices during that period and a reasonable MTBE price linked to the crude. Then you saw during the 2020 period, quite a construction. Mobility stopped, as we all know, around the world, crude prices fell. And then coming out in 2021, we had quite a mix of different actions going on at the same time. We had the bullwhip effect of supply chains around the world, which pushed butane prices up, which pushed methanol prices up. So that was a raw material play. And then we had a slow and cautious recovery from COVID during '21. If you remember, our frantic start at the first quarter and then a bit more of a lockdown, and it was a very variable year for mobility. And then as we approached Q4, we started seeing a drop-off in raw material prices. As D. K. mentioned, China started slowing down with the policies. We saw mobility going up. So we saw a double hit of raw material going down and oil price going up and mobility going up at the same time. And then what we've seen in Q1 so far is something quite different. We've seen certainly oil price going up, as we all know, and it sits in 7-year records. We're seeing MTBE prices going up: one, because of a lack of inventory around the world; and two, because of a very high demand. There's very low inventories, certainly in the U.S. region. And therefore, it's almost like a just-in-time type delivery at the moment. So there's a high demand at the moment for MTBE linked to a high price, linked to crude oil. And at the same time, this whole bullwhip effect on butane and methanol has started calming down. Plus, we've got more rigs online in the U.S. now over 600. And if you saw a recent announcement that President Biden is asking for all caps to be taken off oil and start pumping oil. So you've seen the rig count going up, which has allowed a lot more NGLs into the market. And for the first time in about a year, we've seen butane inventory starting to move into the normalized base in territories. So all of that's compounding into as Mr. Agarwal said, a very good seen factor back into the mid-range of the historicals. So where would this go in the future? Well, we think more and more rigs are going to come online. Saudi is going to max out in terms of its capabilities in terms of pumping oil. And therefore, good forward-looking potential of oil pricing and a good forward-looking potential of NGL being available in the U.S. So our feeling is our spreads are now going to move to the upper territory as we move through the future years. We've been very cautious this year in terms of just making sure the pandemic is over, and it looks like it's coming to an end. I'm being very cautious in making sure that the NGLs, the exports, the inventory levels are going to right size and they look like they are. And being very cautious in how we're looking at gasoline demand versus electric vehicle demand, and we've got some very good charts now where we've looked in the future, and we're not at the peak of internal combustion engine production by any stretch. And that's going to peak around about 2028. And therefore, won't even get back to the current levels with the levels EV disruption until something like 2035. So I think if you bundle all that together, and bundle the fact that we're one of the lowest cost producers in the world versus other producers and D. K. mentioned high gas price in Europe and high naphtha price in China, you bundle all that together, and you're looking at a pretty bright future for MTBE, especially on our cost base. So that's why we're being quite bullish in the outer years of MTBE being higher than the average.

Audience, do you have -- we don't have any more questions in the chat room. Do anybody have any questions? [Operator Instructions] Okay. So we are also on time. So any last minute message, Mr. Lohia, you want to give out?

You caught us by surprise Vikash. Again, I would like to thank all the participants for joining us today and for your patience. I'm thankful to our management. I think we prepared very hard for this Capital Market Day and in advance for our board offsite. So I think business has shown resilience. Our management has shown agility, and we have a plan not only for the next 3 years, but the next 7 years. So with that, I would like to thank you all for joining us today, and hope to see you all again soon face to face. Thank you.

Thank you very much.

Thank you very much, and we bring the event to the end, and we look forward to get engaged with you on a one-to-one basis. And have a very good success this year. Thank you.