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1

July 2016

JBF INDUSTRIES LTD Corporate Presentation

2

Index

Company Overview

Current Facilities

Upcoming Projects

Industry Overview

Outlook & Strategy

Financial Performance

Index

3

Overview

JBF Industries is a global company engaged in the production of polyester value chain Current polymerisation capacity of 1.43 MMT p.a. and downstream capacity of 544 KMT p.a. Operates out of 3 domestic facilities, 1 in Gujarat and 2 in Silvassa, and 3 overseas facility in Ras Al-

Khaimah, UAE, Belgium and Bahrain. Promoted by Mr. Bhagirath C. Arya, a technocrat entrepreneur Listed on the BSE and NSE with a market cap of INR 14,962 mn (as on March 31, 2016)

Products& Business Mix

Product Mix can be divided into three broad categories:- I. Polyethylene Terephthalate (PET) Chips:Textile Grade and Bottle Grade II. Polyester Yarn: Partially Oriented Yarn, Full Drawn Yarn etc. III. Biaxially-Oriented Polyethylene Terephthalate (BOPET) Films:Thin, Thick, Metallized FY 16 Sales Mix (By Value) :-Chips – 66%, Polyester Yarn – 19%, BOPET Films – 15%

Markets

Indian facilities cater to the Indian and exports markets: 2nd largest domestic supplier of textile grade chips with a capacity share of ~20% 3rd largest domestic supplier of bottle grade chips with a capacity share of ~20% 3rd largest domestic supplier of Polyester Yarn with a capacity share of ~15%

RAK facility (Bottle grade chips and Films) caters to European, MEAF and North American markets Market share of 70 % in the UAE and 45% in GCC region in the Bottle grade chips segment


Highlights

Income has grown from INR 64,836 mn in FY 11 to 88,965 mn in FY 16 – 5 year CAGR of 6.5% FY 16 Performance: Income – INR 88,965 mn, EBITDA – INR 7,298 mn, Net Profit – INR (1,815) mn JBF announced Dividend of INR 1/share in FY16

Integrated Polyester

Player of Global scale

JBF is amongst the Top 5 producers of PET chips and of BOPET Films globally JBF is setting up a 1.25 MMT Purified Terephthalic Acid (PTA) plant at Mangalore SEZ thereby will

become an integrated petrochemical company. JBF has also set up a 390 KT p.a. PET plant in Belgium and a 90KT p.a. BoPET Film plant in Bahrain.

Executive Summary

4

760 886

1047 1180

216 224

211 213

77 79

101

114

0

200

400

600

800

1,000

1,200

1,400

1,600

FY13 FY14 FY15 FY16

Chips Yarn Films

Established in 1982, JBF Industries was founded by Mr. Bhagirath Arya as a Yarn Texturising company, the company has

since backward integrated into the polyester value chain.

Company is currently engaged in the production of products in the Polyester value chain such as: Polyethylene

Terephthalate (PET) chips which are of Bottle grade, Textile grade and Film grade; Polyester Yarn, such as Partially

Oriented Yarn (POY), Polyester Filament Yarn (PFY), Full Drawn Yarn (FDY) and Other Specialized Yarn; and PET Films, which

are of Thin grade, Thick grade and Metallised grade.

It commenced its international operations in 2006 by foraying into the PET chips and PET Film business by setting up plant

at Ras-Al-Khaimah (RAK) UAE. Currently, JBF has 3 plants internationally in RAK, Bahrain and Belgium.

JBF declared a Dividend of INR 1/share for FY16.

INR Mn FY13 FY14 FY15 FY16

Total Income 74,592 85,803 88,978 88,965

EBIDTA 6,903 7,245 9,408 7,298

EBIDTA Margin 9.30% 8.30% 10.60% 8.20%

Net Profit 1,135 57 311 (1,815)

Net Profit Margin

1.52% 0.07% 0.35% NA

Diluted EPS (INR)

15.24 0.35 4.22 (26.52)

Company Overview

Financial Highlights Production Highlights (‘000 tons)

Company Background

5

JBF India - Management Profile

BC Arya

Chairman

Qualified with a Bachelor’s Degree in Electrical Engineering Equipped with over 35 years experience in the Polyester industry particularly in the field of synthetic

yarn Presently acting as Executive Chairman and handles all management and operating affairs of the

Company

Rakesh Gothi

Managing Director

B. Tech, MS & MBA degree holder; associated with the Company since January 1997 Equipped with over 35 years of experience; worked as Vice President (Marketing) at J.K. Synthetics Ltd

and Nirlon Ltd Presently acting as Managing Director with a particular focus on production and marketing functions

Nilesh K. Shah

Director -

Commercial

Qualified science graduate; associated with the Company since 1992 Over 25 years of experience; previously Manager in the Production Department of Armour Chemicals Presently acting as Commercial Director and responsible for managing material procurement,

inventories management, excise and other commercial tax related matters etc.

Ajay Agarwal

Chief Financial

Officer

Associated with textile sector for over 25 years Served in a senior role with Pioneer Embroideries, GINI & JONY, Allied Digital and Ginja Industries Responsible for turning around Ginja Industries (unlisted) from default rating to A- credit rating Presently acting as Chief Financial Officer and responsible for handling finance function

6

JBF RAK - Management Profile

Cheerag B Arya

CEO & Director

Management graduate with in-depth understanding of global petrochemical industry & polyester businesses.

Under his leadership JBF RAK LLC has scaled new heights continuously during last six years of operations in UAE.

All the overseas expansion projects of JBF Group are being executed under his supervision

Rohit Maindwal

COO & Director

Shri Gangadhara S.

Poojary - CFO

A . Gopalkrishna Pai

CEO –

JBF Petrochemicals

Ltd (PTA)

Chemical Engineer with a Diploma in Marketing. He has rich & varied experience of more than 19 years in petrochemical industry. His prior work experience includes stints in polyester industry of both India & China, providing

in-depth business understanding of the two largest polyester industry hubs.

Charted Accountant by qualification with more than 31 Years of experience in Corporate Finance and Accounting.

He had joined JBF RAK since inception in 2006 & is currently overseeing all financial & regulatory compliance functions in the company as its Chief Financial Officer.

B.Tech in Chemical Engineering and Post Graduation in Diploma in Business Management with

over 29 years experience in mega industries like MCF, MRPL, & MSEZL. He had joined in November 2011 and currently is the CEO of the PTA plant (JBF Petrochemicals

Ltd) in Mangalore.

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JBF Industries Ltd

Promoters

SILVASSA Plants SARIGAM Plant

JBF Global Pte. (Singapore)

JBF Ras Al-Khaimah

100%

43%

Group and Shareholding Structure

Public Institutions

14% 17%

Marquee Investors % Holding

KKR 20.00%

Copthall Mauritius Investment Ltd

3.94%

Life Insurance Corporation of India

2.59%

Cresta Fund Ltd 2.07%

Eriska Investment Fund 1.55%

TOTAL 30.15%

`

Intn’l Operations Indian Operations

Source – BSE India, Co. data

JBF Petrochemicals Ltd. (Mangalore SEZ)

` 100%

Existing Projects Proposed Projects

JBF Belgium

96.9%

100%

100% JBF Bahrain

3.1%

Shareholding Pattern (As on June 30th, 2016)

Promoter 43%

DII 3%

FII 14%

Public 40%

8

1982-1994

• Incorporated in 1982, established itself as one of India’s Leading Polyester Texturisers

1995-1999

• Entered yarn manufacturing in 1996, capacity 18,000 MT/ Expanded to 36,000 in 1999

2000-2002

• Backward integration into chips production with 36,000 MT in Mar 01/ Expanded to 72,000 in Nov. 01

2003-2005

• Expansion: Chips – 108 KTA, Yarns – 144 KTA Setup Sarigam facility; 216 KTA textile grade chips

2006-2007

• Commissioned Ras Al Khaima UAE plant; Capacity: 216 KTA grade chips and BOPET Film capacity of 48 KTA

2008-2011

• Increased India Textile chips capacity to 460 KTA, RAK Bottle grade chips capacity to 390 KTA and BOPET Film capacity of 66 KTA at RAK

2012-present

• Backward integration by setting up a PTA plant. Set up greenfield capacities in Belgium for PET Chips, in Bahrain for BOPET Film.

Ability to grow continuously through backward integration and scale...

Key Milestones

9

Textile Grade Chips

Bottle Grade Chips

Film

Yarn

Clientele Mix

10

Purified Terephthalic Acid (PTA)

Mono Ethylene Glycol (MEG)

Textile Grade Chips

Partially Oriented yarn (POY)

Specialized yarn (FDY/Micro POY)

Film Grade chips

BoPET Films

Yarn manufacturers

Weaving-Fabric, Garment

Value Chain segments covered by JBF

Value addition across the Polyester chain

Backward Integration plans

Industry application

Basic Petrochemicals Polyester Value Chain Applications

Solar Industry, FMCG

& Other Applications

1 MT of Polyester melt

0.86 MT

0.34 MT

Business Value Chain

Bottle Grade chips (PET)

Application/s in FMCG industry

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Index

Company Overview

Current Facilities

Upcoming Projects

Industry Overview

Outlook & Strategy


Index

12

JBF has witnessed significant capacity growth over FY 05-12 through a series of brown-field as well green-field expansion

programmes

Commenced commercial operations at the RAK facility in FY 08 thereby diversifying its product portfolio into polyester films

JBF currently has a polymerization (chips production) capacity of 1,430 KT p.a. and a downstream capacity of 544 KT p.a.

The company has commenced its greenfield expansions in Belgium for PET Bottle grade chips, and in Bahrain for BoPET

films and is currently undergoing another greenfield expansion in Mangalore SEZ for Purified Terephthalic Acid (PTA)

All expansion plans are expected to be fully commercialized by FY18, thereby taking the company’s polymerization

capacity to 1,430 KT p.a., downstream capacity of 544 KT p.a., and a backward integrated PTA capacity of 1,250 KT p.a.

Polymerisation & Downstream Capacity

Domestic & Other Capacities

(KTPA) FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E

India – Chips 335 551 551 608 608 608 608 608 608 608

India - Polyester Yarn 163 163 201 230 245 262 262 262 262 262

India - Texturized Yarn 90 90 90 90

India – PTA 1,250

RAK, UAE – Chips 324 324 360 390 432 432 432 432 432 432

RAK, UAE - BOPET Films 60 66 66 66 102 102 102 102 102

Bahrain - BOPET Films 60 90 90 90

Geel, Belgium – PET (Bottle) 390 390 390

Total 835 1,111 1,191 1,307 1,364 1,421 1,554 1,974 1,974 3,224

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Domestic Facilities – POY and PET chips

Sarigam, Gujarat

Total Chips capacity- 608,000 MT p.a.

includes:

a. Textile Grade Chips

b. Specialty Grade Chips

c. Bottle Grade Chips

Athola and Saily, Silvassa

Polyester Yarn Capacity - 262,000 MT p.a.

Texturized Yarn Capacity – 90,000 MT p.a.

Facilities are located in close proximity to each other, the raw material suppliers and also to the major textile hub of Surat Facility locations ensure flexibility in operations, working capital requirement optimization and low logistical costs JBF is amongst the largest domestic manufacturers of Textile & Bottle grade chips as well as Polyester Yarn

FY14 FY15 FY16

Production (MTPA)

Chips 4,83,535 4,66,738 5,07,177

POY & Specialty Yarn 2,66,079 2,73,931 2,93,703

Sales (MTPA)

Chips 2,66,550 2,55,631 2,91,059

POY & Specialty Yarn 2,25,040 2,07,835 2,12,487

Sales (INR Mn) 47,709 41,225 36,167

INR

/Kg

Performance Highlights Average Product Realization

89

109

78

100

66

83

0

20

40

60

80

100

120

Chips POY & Specialty Yarn

FY14 FY15 FY16

14

Domestic Facilities

JBF Sarigam Plant Aerial View JBF Silvassa Plant

Partially Oriented Yarn Manufacturing Units POY Texturising Units

15

Ras Al-Khaimah, UAE Facility – PET Chips and BOPET Films

Ras Al-Khaimah, UAE

Chips – 432,000 MT p.a.

BOPET Films – 102,000 MT p.a.

Strategic Advantage of production facility in RAK, UAE: Tax free and no export duty zone Easy availability of raw material Major Port, giving easy access for exporting to USA and

Europe Tap growth potential of the MEAF and GCC markets, which

are the fastest growing PET markets in the world with more than 10% growth YoY

First mover advantage in the Middle East region has helped secure preferred supplier contracts for bottle grade chips

Expansion into higher value added products like Thick films and Metallised films

Performance Highlights

FY14 FY15 FY16

Production (MTPA)

Chips 3,99,431 3,91,296 3,41,995

Films 79,586 61,339 53,175

Sales (MTPA)

Chips 3,38,463 3,47,238 3,33,506

Films 72,417 65,913 49,407

Sales (INR Mn)* 38,773 34,298 27,097

85

138

75

125

63

124

0

20

40

60

80

100

120

140

160

Bottle Grade Chips Films

FY14 FY15 FY16

INR

/Kg

Average Product Realization*

*Calculated based on Average exchange rate USD/INR for respective period

16

JBF RAK Plant Aerial View External View

BOPET Thick Film Line BOPET Thin Film Line

Ras Al-Khaimah, UAE Facility

17

Geel, Belgium Bottle Grade Chips – 390,000 MT p.a.

JBF has developed a 390 KT p.a. capacity PET plant to

manufacture bottle grade chip.

The Facility was commissioned on 1st July 2014.

The plant is located in the Geel province of Belgium, and is a

co-location plant next to British Petroleum’s (BP) PTA facility

The plant engineering and construction has been done by

Uhde Inventa-Fischer. Uhde’s Melt-To-Resin (MTR)

technology enables JBF Industries to produce top-quality PET

chips at lower cost.

JBF PET has a 19.5% lower carbon footprint than the Indian

average (source: Intertek)

Geel, Belgium Facility – PET Chips


FY15 FY16

Production (MTPA)

Chips 1,88,592 3,30,436

Sales (MTPA)

Chips 1,77,101 3,28,537

Sales (INR Mn)* 12,191 21,631


18

Project Update: The Facility is co-located on the BP Aromatics site in Geel Belgium. JBF has a tie-up with British Petroleum (BP) for procurement of PTA. BP supplies PTA through a common pipeline which reduces logistical costs. All customers are located within a 100 km radius of the Geel plant. EU is a net importer of PET chips.

Technology:

Technology Provider: Uhde Inventa-Fischer of Germany, a subsidiary of the ThyssenKrupp Uhde GmbH company.

Europe’s Biggest: JBF’s Belgium Facility will be Europe’s biggest PET plant to date.

Superior Technology: Based on Uhde Inventa-Fischer's state-of-the-art, energy-efficient, patented Melt-To-Resin (MTR.) technology, the plant will produce top-quality PET pellets.

Scope: Uhde’s scope of supplies includes the know-how license for the MTR®-and FTR® technologies, the basic-and detail engineering, supply of all plant components and supervision of the construction and commissioning activities, training of the operating personnel.

Technology Advantage: The Melt-to-Resin (MTR)® replaces the cost-intensive solid-state post

condensation (SSP) process. Much lower operating and maintenance costs Significantly reduced CO2 balance Fewer investment costs Overall reduction of conversion costs of about 30%. Flakes-To-Resin (FTR®) recycling line will also allow 25% of the PTA required

to be replaced with recycling material.

FTR® process is FDA-approved, which certifies that the quality of the PET pellets produced is adequate for food application.

Geel, Belgium PET Facility

19

Bahrain BOPET Films – 90,000 MT p.a.

JBF has developed a 90 KT p.a BOPET Films plant at Bahrain International Investment Park, a free trade zone with significant support from the Bahrain Government.

All 3 lines of polyester film plant executed with total capacity of 90,000 MT per annum and have been fully commissioned

Bahrain Facility - BOPET Films


FY15 FY16

Production (MTPA)

Films 40,115 60,825

Sales (MTPA)

Films 38,110 58,658

Sales (INR Mn)* 5,024 7,403


20

Bahrain Facility - BOPET Films

Project Update: JBF Bahrain is located in the Kingdom of Bahrain’s free trade

International Investment Park. With support from the Bahraini Government, the acquired land of 65,000 square meters by JBF Group at the Salman Industrial City enjoys geographic and economic advantages to cater to the North & South American and Middle East PET markets.

This plant commenced operations in three phases: Phase I: The first phase of production has commenced with

manufacturing of thin BOPET films and is the only one of its kind in the world producing thickness ranging from 8 Micron to 125 Micron.

Phase II: Second phase of production has commenced and will produce thin BOPET films ranging from 36 Micron to 250 Micron. This state of the art structure will be capable of delivering deckle width of 6.0 meters.

Phase III: The third stage has commenced and will be producing thickness BOPET films ranging from 8 Micron to 125 Micron.

Technology: Technology Provider: The Bahrain factory will be equipped with

the state of the art BOPET film machinery from Dornier of Germany.

Superior Technology: This new factory is equipped with latest and robust production technology, comprising two lines at 8.7 meters wide and one line at 6.0 meters wide machine which will offer films with maximum width of 3300 mm.

21

Index

Company Overview

Current Facilities

Upcoming Projects

Industry Overview

Outlook & Strategy


Index

22

Mangalore, Karnataka

Purified Terephthalic Acid (PTA) –

1,250,000 MT p.a.

JBF will develop a 1.25 MMT p.a capacity PTA plant, which will be amongst the largest of its kind in India

The plant will be located in the Mangalore SEZ, for which 114 acres of land has been allotted.

Technology has been provided by British Petroleum.

The turnkey project has been awarded to Technip, France.

Raw material tie-up has been completed with OMPL (a subsidiary of MRPL).

JBF currently consumes ~800-900 KT p.a of PTA globally and maintains an average of 10-15 days of inventory, this would reduce to less than 5 days

Imports to JBF RAK and India take ~3-4 weeks delivery time currently, which would reduce to 3-5 days to RAK and 1-2 days to India

JBF expects to save ~ $40-$50 per ton in freight for its RAK facility, due to reduction in logistical costs that it incurs currently by procuring Px in UAE and sending it to South East Asia to convert it into PTA

JBF India’s operation is expected to save ~ $15-$20 per ton on logistical costs of PTA imports

Working Capital Advantage Logistics Savings

Timeline: expected completion by FY17 year end

Expected Total Project Cost: $700mn

Funding: Debt financing of $464mn via ECB is underwritten by IDBI Bank.

KKR has invested $150mn equity to complete the project.

Expansion Plans – Mangalore PTA Project

Backward Integration

After commencement, JBF would become the only PTA integrated Polyester company in India other than Reliance Industries Ltd.

JBF’s current total PTA requirement is more than 800,000 MT p.a.

JBF’s Mangalore PTA plant would be able to meet all of JBF’s internal PTA requirement.

Excess capacity will be sold in the open market.

23

Project Update: All necessary permits, clearances have been received to begin

plant construction. Leveling of Land, Boundary Wall construction, peripheral drain,

road development all have ben completed. The site has been handed over to the EPC contractor Technip

and the Technology provider British Petroleum. Construction and Engineering work has begun.

Raw Material Sourcing: The company will source Paraxylene (Px) from the OMPL

Aromatics Refinery which is only 1km away within the same SEZ JBF also has the ability to import Px as the plant is 7Km from the

Mangalore Port.

Technology:

British Petroleum’s First Third Party, Non-Affiliate, Licensing of latest generation PTA technology

Originally developed in the 1950’s, improved through successful iterations

Significantly lower capital and operating costs compared to conventional PTA plants

Relies on proprietary technology to deliver 75% lower water discharge, 65% lower GHG emissions, and 95% lower solid waste generation than conventional PTA plants

Expansion Plans – Mangalore PTA Project

24

Index

Company Overview

Current Facilities

Upcoming Projects

Industry Overview

Outlook & Strategy


Index

25

Global Man Made Fibre Demand

68%

12%

4%

4%

12%

Polyester PP PA AC RY

51%

25%

4%

3% 3%

4% 5%

5%

Apparel Home Textiles Auto

Filter Medical Geotextiles

Hygiene Other

Total 2012 = 60 Million Tons

PP = Polypropylene PA = Polyamide (Nylon) AC = Acrylic RY = Rayong (Cellulose)

Types of Man Made

Fibre

Applications of Man

Made Fibre

26

World Polyester Growth Rates

Polyester Market Overview Polyester Market Overview Global Polyester capacity is estimated at ~85.5MMT whereas overall production is ~60 MMT at the end of 2012

Polyester downstream margins remained firm; PET deltas improved 29% Y-o-Y

Polyester exports increased 12% Y-o-Y supported by depreciation of Indian Rupee

Operating rates have been stable averaging ~75% and are expected to increase further backed by higher demand and stable capacity additions

Polyester Production AAGR (%)*

2005-10 – 4.5% 2010-15E – 7.3%

Fibre intermediates price weakness favoured polyester fibre/yarn margins

PX/PTA/MEG prices down 8-9%

PET margins healthy owing to operation rationalization and Asian demand

Polyester filament growth nearly three times the average of all fibres during the last five years (7.9% vs. 3.1%). Future production growth (through 2025) expected to moderate to 6% per annum (still almost twice all other fibre growth)

0%10%20%30%40%50%60%70%80%90%100%

0

20

40

60

80

100

120

Operating Rate

Mn Tonnes

Capacity Production Oper. Rate

Global Demand AAGR** 2005-10 2010-15E

Polyester Film 3.7% 7.9%

Polyester Filament Yarn (PFY) 10.7% 10.4%

Polyester Staple Fiber (PSF) 2.5% 2.7%

PET Resin (For Bottles) 4.9% 5.5%

Polyester Segmental Break-up

PET margins improved due to extensive operation rationalizations and lower input

cost

Source: Tecnon OrbiChem

27

Day to day Applications

When you Drink When you Cook When you Play

When you Sleep When you need

Surgery When you Drive

When you Celebrate When you need

Safety When you Dress Up

When its time for Adventures

When you need to stay Dry

When you need to be Responsible

Global Polyester Demand Drivers

28

Beer Bottles

Plant bottle

LCD / LED Screens Mobile Phones

Shoes Solar Power

Future Polyester Demand Drivers

29

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

10

20

30

40

50

60

70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Operating Rate

Million Tons

Total Capacity World PTA Demand

Annual global capacity for PTA is estimated to be ~57

MMT at the end of 2012; whereas the global demand

is estimated at ~46 MMT.

Domestic Capacity of PTA is at ~3.5 MMT, while

demand is at ~4.5 MMT

Global Suppliers - Samsung Petrochemicals, Total

Petrochemicals, BP Aromatics, Acetyls

Domestic Suppliers – Reliance Industries, Mitsubishi

Chemical, Indian Oil Corporation

Operating rates expected to moderate due to

relatively higher growth in capacity additions

Demand to remain firm and is expected to grow at a

CAGR of 6.4% from 2010-14

Annual global capacity for Monoethylene Glycol (MEG)

is estimated to be ~25 MMT at the end of 2012;

whereas the global demand is estimated at ~23 MMT

Domestic Capacity of MEG is expected at ~1.2 MMT,

while demand is at ~1.7 MMT

Major Suppliers

Global - SABIC, Sinopec Group, Formosa

Petrochemical, Shell, ME Global

Domestic – Reliance Industries, Indian Oil Corp

2012-13 period witnessed over capacity in MEG

globally

Purified Terephthalic Acid Supply-Demand

Monoethylene Glycol Supply-Demand

Source – CMAI Global, JBF Internal Research

Raw Material Scenario

65

70

75

80

85

90

95

0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Operating Rate

Million Tons

Total Capacity MEG Demand Operating Rate

30

World PTA Status

Asian PX-PTA Spreads 2010–2013 (US$/ton)

0

100

200

300

400

500

600

700

800

20

10

Ap

r

Jul

Oct

20

11

Ap

r

Jul

Oct

20

12

Ap

r

Jul

Oct

20

13

Ap

r

Jul

PX- Naphtha PTA-0.66PX

Healthy PTA Margins

High PX price, Massive new PTA capacity additions & Poor

downstream demand

Strong PX Margins -

Tight Supply

Strong demand for PTA

World Surplus PTA Capacity (Mn tons)

0

5

10

15

20

25

30

35

PTA capacity is expanding faster than demand, average utilisation rates have fallen and margins have been eroded

China’s need for imported PTA is shrinking as polyester fibre / PET Resin producers are back integrating, impacting Taiwanese, South Korean and other Asian countries PTA exports significantly

Rumours of Asian PTA industry rationalisation as there are no target substitute countries that need the PTA volumes that China consumed before they commissioned the new PTA plant capacities in the mainland.


Cautious demand of PTA and looming supply, forced PX deltas lower

PTA margin revival expected owing to new PX capacity additions and

operational rationalization

31

World New PTA Capacity 2012

Company Location Capacity (ktpa) Start-Up Date

Lotte Chemical Ulsan, South Korea 100 Jan 2012

BP Zhuhai Chemical Zhuhai, China (Guangdong)

200 Jan 2012

Oriental Petrochemical Shanghai, China (Shanghai)

100 Jan 2012

Artlant Sines, Portugal 700 Mar 2012

Zhejiang Yuandong Shaoxing, China (Zhejiang) 1,500 May 2012

Tuntex Petrochemical Pinnan, Taiwan 50 Jun 2012

Hengli Petrochemical Dalian, China (Liaoning) 2,200 Sep 2012

Jiaxing Petrochemical Jiaxing, China (Zhejiang) 1,500 Sep 2012

Hengli Petrochemical Dalian, China (Liaoning) 2,200 Oct 2012

PT Indorama Petrochemicals

Cilegon, Indonesia 35 Dec 2012

Yisheng Dahua Dalian, China (Liaoning) 3,000 Dec 2012

Total 11,585


32



CEPSA Quimica Montreal-East, Canada 50 Jan 2013

Petroquimica Suape (PQS) Suape, Brazil 700 Mar 2013

FCFC Ningbo, China (Zhejiang) 300 Mar 2013

Zhejiang Yisheng Petrochemical

Yangpu, China (Hainan) 2,200 Mar 2013

Ibn Rushd Yanbu, Saudi Arabia 280 Sep 2013

Xianglu Petrochemicals Zhangzhou, China (Fujian) 4,500 Sep-Oct 2013

Total 7,000


33



Indorama Holdings Rotterdam

Rotterdam, Netherlands 251 Q1 2014

Jiangsu Honggang Petrochemical

Lianyungang, China (Jiangsu)

1,500 Q1 2014

Sichuan Shengda Chemical

Nanchong, China (Sichuan)

1,000 Q1 2014

Reliance Industries Dahej, India 1,150 Q2 2014

Petkim Aliaga, Turkey 35 Q3 2014

Hengli Petrochemical Dalian, China (Liaoning) 2,200 Q3 2014

Reliance Industries Dahej, India 1,150 Q4 2014

Oriental Petrochemical Kuan Yin, Taiwan 1,500 Q4 2014

BP Zhuhai Chemical Zhuhai, China (Guangdong)

1,250 Q4 2014

Total 5,950


34

Delta Prices over the last 1 year

PTA (Rs/Kg) MEG (Rs/Kg) CHIPS (Rs/Kg) POY (Rs/Kg) Chips Delta

(Rs./kg) POY Delta

(Rs./kg)

Max 55.00 68.10 75.75 82.00 5.30 22.73

Min 44.90 45.20 59.00 71.11 3.70 8.80

Avg 48.48 52.08 64.02 78.69 4.62 19.29

75.75

69.00

61.50 62.50 61.50 62.00 60.00 59.00

63.50 64.00 64.50 64.00 65.00

79.25 75.56

71.11

81.00 80.00 77.50 76.00 76.00

81.00 81.50 82.00 81.00 81.00

5.30 5.30 4.04 4.20 3.70

4.92 4.81 4.64 5.23 3.73 4.18

4.92 5.13

8.80

11.86 13.65

22.70 22.20 20.42 20.81 21.64

22.73 21.23 21.68

21.92

21.13

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

CHIPS (Rs/Kg) POY (Rs/Kg) (inclusive of excise) Chips Delta (Rs./kg) POY Delta (Rs./kg)

35

Historical Delta Prices over the last 3 years

PTA (Rs/Kg) MEG (Rs/Kg) CHIPS (Rs/Kg) POY (Rs/Kg) Chips Delta

(Rs./kg) POY Delta

(Rs./kg)

Max 77.50 78.30 101.50 113.00 11.89 23.51

Min 43.50 45.20 59.00 71.11 3.70 8.80

Avg 57.06 60.53 75.76 88.51 6.11 18.86

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

-

20.00

40.00

60.00

80.00

100.00

120.00

CHIPS (Rs/Kg) POY (Rs/Kg) (inclusive of excise) Chips Delta (Rs./kg) POY Delta (Rs./kg)

36

World Paraxylene Capacity

World Paraxylene Capacity Vs. Consumption (Mn Tons) World capacity will grow from 39 to 59 million tons in 2016 (+

51% CAGR)

The supply growth rate of PX from 2013-2015 is estimated at

14-17% annually, compared to the growth rate of demand,

which is likely to remain relatively stable at 5-6% on

unfavourable macroeconomic conditions.

PX capacity additions as planned should be sufficient to match

polyester growth rates but does not match planned new PTA

capacity growth and PTA utilisation rates are suffering.

Several industry sources expect the additional PX capacities to

add downward pressure on PX prices as supply will likely be

ample in 2014.

The overall operating rate of Asia’s PX plants is likely to fall to

80-85% capacity in 2014.

World Surplus Paraxylene Capacity (Mn Tons)

0

2

4

6

8

10

12

14

16

18

PX capacity additions although came with a lag compared to PTA, should

result in improved deltas for PX-PTA. Note : To produce one ton of PTA

0.66 ton of PX is required


37

World New Paraxylene Capacity 2013


Hyundai Cosmo Petrochemical

Daesan, South Korea 800 Jan 2013

Singapore Aromatics Recovery

Jurong Island, Singapore 80 Jun 2013

Dragon Aromatics Zhangzhou, China (Fujian) 800 Aug 2013

Dragon Aromatics Zhangzhou, China (Fujian) 800 Sept-Oct 2013

PetroChina Sichuan Petrochemical

Pengzhou, China (Sichuan)

650 Q4 2013

Qingdao Lidong Chemical Qingdao, China (Shandong)

300 Q4 2013

Fujia Dahua Petrochemical

Dalian, China (Liaoning) 700 Q4 2013

Hainan Refinery & Chemical

Yangpu EDZ, China (Hainan)

650 Q4 2013

ONGC Mangalore Petrochemicals

Mangalore, India 920 Q4 2013

SATORP Al Jubail, Saudi Arabia 700 Q4 2013

Naftek (Sonatrach) Skikda, Algeria 220 Q4 2013

Total 6,620


38

World New Paraxylene Capacity 2014


Yasref Yanbu, Saudi Arabia 700 Q1 2014

Byco Oil Pakistan Lasbela, Pakistan 92 Q2 2014

Jurong Aromatics Corporation

Jurong Island, Singapore 800 Q2 2014

SK Global Chemical Incheon, South Korea 1,300 Q2 2014

Ulsan Aromatics Ulsan, South Korea 1,000 Q2 2014

Samsung Total Petrochemical

Daesan, South Korea 1,000 Q3 2014

Total 4,892

8 million tpa of new PX capacity is due on-stream in 2015


39

Index

Company Overview

Current Facilities

Upcoming Projects

Industry Overview

Outlook & Strategy


Index

40

Belgium PET Project

390,000 MT p.a.

Bahrain Films Project

90,000 MT p.a.

Mangalore PTA Project

1,250,000 MT p.a.

New Projects

Growth Drivers

Co-location plant with BP’s PTA facility will ensure continuous

supply of PTA

Free trade agreement with USA will export products at

better realizations

Imports to JBF RAK and India would reduce to 3-5 days to RAK

and 1-2 days to India

Demand strong for bottle grade chips in EU

Strong local presence in the middle east market

British Petroleum’s First Third Party, Non-Affiliate, Licensing of latest generation PTA technology

Preferred supplier in UAE and GCC Region

JBF expects to save ~ $40-$50 per ton in freight for its RAK

facility

Outlook to 2016

2014 2018

Uhde Inventa-Fischer‘s patented Melt-To-Resin

technology, will produce top-quality PET pellets.

1,511 KTPA 3,224 KTPA

Total Capacity

41

CHIPS India, 2,76,376

POY, 2,07,069

Chips RAK, 2,78,356

PET Film, 76,375

Revenue Mix

Well Diversified Business Model….

Chips India 28%

POY 26%

PET Chips RAK 28%

Films 18%

FY 11 FY 16

…..Ensures acceleration into higher value added products

Product Delta Range ~

Chips – India (INR/Kg) 3-12

POY (INR/Kg) 8-24

Chips – RAK (USD/MT) 133-300

PET Film (USD/MT) 556-2,223

~Delta is calculated as Revenue (Less) Raw Material

FY 16

^ Includes Speciality Yarn

Product Mix (By Value)

Sales Mix (By Geography)

India, 54%

Outside India, 46%

FY 11

Historical Product Deltas

Product Mix* (By Volume)

*India and RAK Sales

FY 11 FY 16

CHIPS -India 20%

POY 19%

PET Chips - International

46%

Films 15%

Chips India, 2,91,059

POY, 2,12,487 Chips Intl,

6,62,043

Films, 1,08,065

Outside India 60%

India 40%

42

Reliance 37%

Indo Rama 15%

JBF Industries

11%

Alok 9%

Garden Silk 8%

Others 20%

Reliance 43%

JBF Industries

20%

Dhunseri 26%

Futura 7%

Poly Pearl 4% Reliance

7%

JBF Industries

26%

Garden Silk 45%

Bhilosa 8%

Sumeet 5%

Others 9%

JBF ranked 3rd in domestic POY capacity share..

JBF ranked 3rd in domestic bottle grade chips capacity share..

JBF ranked 2nd in domestic textile grade chips capacity share..

JBF Among Top 10 Global PET chips and

BOPET Films manufacturing

companies

India - Polyester Yarn India - PET Chips (Bottle Grade) India – PET Chips (Textile Grade)

Global – BOPET Films Global – PET Chips (Bottle Grade)

M&G Group 17%

IVL 15%

Jiangsu 12%

Far Eastern 10%

DAK 8%

Artenius 8%

Nan Ya 8%

INVISTA 8%

Eastman 8%

JBF Industries 6%

DuPont 14%

Zhejiang 11%

Toray 9%

Mitsubishi 7%

Flex 4%

SKC 3%

Kodak 3%

JBF Industries 3%

Kolon 3%

Jindal Poly 3%

Major Polyester Companies

Source – Internal Research

43

Index

Company Overview

Current Facilities

Upcoming Projects

Industry Overview

Outlook & Strategy


Index

44

Standalone Income Statement

Income Statement (INR Mn) FY12 FY13 FY14 FY15 FY16

Income 43,833 45,041 47,847 41,269 36,206

Other Income 833 223 316 276 295

Total Income 44,666 45,264 48,163 41,545 36,501

Total Expenses 39,817 40,940 44,187 36,995 32,530

EBITDA 4,849 4,324 3,976 4,550 3,971

EBITDA Margin 10.86% 9.55% 8.26% 10.95% 10.88%

Exchange Difference & Derivative Loss 2,951 1,386 1,185 126 216

Depreciation 839 1,007 1,122 967 1,005

Interest 776 1,060 1,376 1,452 1,730

PBT 283 871 293 2,005 1,020

Tax -205 356 143 611 365

Profit After Tax 488 515 150 1,394 655

PAT Margin 1.09% 1.14% 0.31% 3.36% 1.79%

EPS 6.61 6.72 1.70 20.78 8.90

All numbers in INR Mn

45

Standalone Results – Balance Sheet


Particulars FY14 FY15 FY16

B ASSETS

Part -1 Non Current Assets

(A) Fixed Assets 15,470 16,264 15,515

(B) Non-Current Investments 4,238 4,235 3,983

(C) Long Term Loans & Advances 1,046 1,132 1,062

(D) Other Non - Current Assets - 463 711

Total - Non – Current Assets 20,754 22,094 21,271

Part 2 Current Assets

(A) Current Investments 7 2 2

(B) Inventories 4,405 3,353 3,633

(C) Trade Receivables 6,123 5,647 7,680

(D) Cash and Bank Balances 425 2,147 3,270

(E) Short-term loans and advances

1,591 2,061 5,389

(F) Other current assets 514 112 119

Total – Current Assets 13,065 13,322 20,093

B GRAND TOTAL – ASSETS 33,819 35,416 41,364


A EQUITIES & LIABILITIES

Part -1 Shareholder Funds

(A) Share Capital 802 804 968

(B) Reserves& Surplus 9,153 10,218 15,315

Total -Shareholder Funds 9,955 11,022 16,283

Part 2 Non Current Liabilities

(A) Long Term Borrowings 6,696 8,250 5,940

(B) Deferred Tax Liabilities (Net) 1,705 2,242 2,279

(C) Long Term provisions 236 125 98

Total - Non – Current Liabilities 8,637 10,617 8,317

Part 3 Current Liabilities

(A) Short term Borrowings 5,341 7,047 7,632

(B) Trade Payables 6,149 3,088 4,801

(C) Other Current Liabilities 3,226 3,033 3,940

(D) Short-term provisions 511 609 391

Total – Current Liabilities 15,227 13,777 16,764

A GRAND TOTAL - EQUITIES & LIABILITIES

33,819 35,416 41,364

46

Consolidated Income Statement

Income Statement FY12 FY13 FY14 FY15 FY16

Income 71,793 74,558 85,677 88,795 88,816

Other Income 824 34 126 183 149

Total Income 72,617 74,592 85,803 88,978 88,965

Total Expenses 64,666 67,656 78,558 79,570 81,667

EBITDA 7,951 6,936 7,245 9,408 7,298

EBITDA Margin 10.95% 9.30% 8.44% 10.57% 8.20%

Exchange Difference & Derivative Loss 2,939 1,329 1,254 1,209 110

Depreciation 1,525 2,002 2,450 3,068 3,572

Interest 1,462 2,100 3,162 4,237 5,253

Exceptional Item - - 367 - -

PBT 2,025 1,505 12 894 (1,637)

Tax -205 371 143 583 546

Profit After Tax 2,230 1,134 -131 311 (2,183)

Extraordinary Item - - 188 - -

Profit After Tax and Extraordinary Items 2,230 1,134 57 311 (2,183)

Minority Interest - - - - 368

Net Profit 2,230 1,134 57 311 (1,815)

PAT Margin 3.10% 1.52% 0.07% 0.35% NA

Diluted EPS 30.7 15.24 0.35 4.22 (26.52)


47

Consolidated Results – Balance Sheet


Particulars FY14 FY 15 FY16

A EQUITIES & LIABILITIES

Part -1 Shareholder Funds

(A) Share Capital 802 804 968

(B) Reserves& Surplus 18,045 17,551 23,992

Total -Shareholder Funds 18,847 18,355 24,960

Minority Interest - - 2,217

Part 2 Non Current Liabilities

(A) Long Term Borrowings 45,587 61,672 71,844

(B) Deferred Tax Liabilities (Net)

1,705 2,242 2,279

(C) Other Long Term liabilities

352 255 252

(D) Long Term provisions 403 342 385

Total - Non – Current Liabilities

48,047 64,511 74,760

Part 3 Current Liabilities

(A) Short term Borrowings 13,923 20,645 29,560

(B) Deferred Tax Liabilities 68 36 28

(C) Trade Payables 11,841 18,233 17,672

(D) Other Current Liabilities 8,372 8,643 11,718

(E) Short-term provisions 727 997 991

Total – Current Liabilities 34,931 48,554 59,969

A GRAND TOTAL - EQUITIES & LIABILITIES

1,01,825 1,31,420 1,61,906


B ASSETS

Part -1 Non Current Assets

(A) Fixed Assets 62,372 84,651 1,02,822

(B) Goodwill on Consolidation

1,048 1,092 1,180

(C) Non-Current Investments

26 24 21

(D) Long Term Loans & Advances

6,624 2,236 1,191

(E) Other Non-Current Assets

6 6 7

Total - Non – Current Assets

70,076 88,009 1,05,221

Part 2 Current Assets

(A) Current Investments 7 2 2

(B) Inventories

10,440 10,550 10,894

(C) Trade Receivables 11,504 14,508 17,908

(D) Cash and Bank Balances

4,870 4,735 12,212

(E) Short-term loans and advances

4,768 13,503 15,548

(F) Other current assets 160 113 119

(G) Deferred Tax Assets - - 2

Total – Current Assets 31,749 43,411 56,685

B GRAND TOTAL – ASSETS 1,01,825 1,31,420 1,61,906

48

Market Data (Bloomberg – JBF IN, Reuters – JBFI.BO)

Price Data (As on June 30th, 2016)

Share Price Performance

•Source – Bloomberg, Capitaline, BSE India

Face Value (INR) 10

Market Price (INR) 214.3

52 week H/L (INR) 318.4/150.1

Market Cap (INR Mn) 17,545.1

Equity Shares Outstanding (Mn) 81.8

Free Float (Mn) 9,975

1 Year Avg. Trading Volume (‘000) 304.9

Shareholding Pattern (As on June 30th, 2016)

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%JBF BSE

Promoter 43%

KKR 20%

DII 3%

FII 14%

Public 20%

49

Thank You

For further details, please feel free to contact our Investor Relations Representatives:

JBF Industries Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of JBF Industries (“Company” or “JBF”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-3006-7521 / 22 / 23 / 24 Email: [email protected]

mailto:[email protected]

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