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Apresentação braskem day ny

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  • 1. Braskem DayCarlos Fadigas CEO April 19, 2011
  • 2. Forward-looking StatementsThis presentation contains forward-looking statements. These statements are nothistorical facts and are based on management’s objectives and estimates. The words"anticipate", "believe", "expect", "estimate", "intend", "plan", "project", "aim" and similarwords indicate forward-looking statements. Although we believe they are based onreasonable assumptions, these statements are based on the information currentlyavailable to management and are subject to a number of risks and uncertainties.The forward-looking statements in this presentation are valid only on the date they aremade (December 31, 2010) and the Company does not assume any obligation to updatethem in light of new information or future developments.Braskem is not responsible for any transaction or investment decision taken based on theinformation in this presentation. 2
  • 3. Braskem: Leader in PE, PP and PVC production in the Americas Dominant market share in South America, with 69% of  Diversified portfolio of petrochemical products, the Brazilian market with focus on PE, PP and PVC Strong growth track record with attractive project  Annual capacity of 6,460 kton pipeline in Brazil, Latin America and Sustainable  31 facilities in Brazil and USA chemicals (focus on renewable raw materials)  Naphtha and gas based crackers (70/30) Listed in 3 stock exchanges: BM&FBovespa, NYSE and  Petrobras as the main supplier in Brazil (~70% Latibex - 100% tag along of naphtha needs and 100% of gas needs) Investment grade rating by S&P and Moody’s Market Cap (03/25/2011) – US$ 10 billion EV – Net debt Dec 2010 – US$ 16 billion  3 PPFinancial Highlights 2009 2010 Braskem ∆R$ billion Consolidated Stand alone  1 PVCNet Revenue 15.2 27.8 + 83%  1 Chlorine-soda 1 naphtha crackerEBITDA 2.5 4.1 + 64%  4 PENet Debt/EBITDA 2.67x 2.43x - 9%  1 PP  1 PVC  1 gas cracker Potential Short term 1 Chlorine-soda  1 PP Upside  1 PE  1 naphtha  Synergies:  1 naphtha cracker cracker ‐ Additional EBITDA – R$ 495 million on a  1 ethanol cracker  2 PP  5 PE recurring basis as of 2012, out of which R$  3 PE  2 PP 377 million in 2011  Expectation of cycle recovery as of 2012 Industrial Assets 3
  • 4. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 4
  • 5. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 5
  • 6. Braskem: strong potential for outperform Braskem responsible for over 60% of the capacity share of thermoplastic resins* in South America – 69% market share in Brazil. W.Europe North America # 29 players South America: # 32 players Second player has around 10% of Braskem’s capacity N.Asia M.East ~# 150 players Capacity (000 Metric Tons) # 38 players S.Asia Braskem: 5,510 Petroken: 180 ~# 40 players Ecopetrol: 548 PETROQUIM: 120 Petroquímica Cuyo: 130 Mexichem: 416 South America PBB Polisur: 650 Polinter: 495 # 12 players Pequiven: 185 Propilven: 115 Petro Dow: 42 Solvay Indupa: 541Source: Analysts reports, CMAI capacity list * PE, PP and PVC 6
  • 7. Brazil: strong potential growth Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth% 2010 Market Share Estimate: Resins Demand ~ 2.0x GDP Others 15.0% 5% 10.0% Imports 2x GDP 26% 7.5% 1.0% 69% 4.5% Braskem -0.6% 2009 2010 2011e 2012e 2013e 2014e 2015e Brazilian GDP (Growth %) Demand Growth (2x GDP) % Per-capita Consumption of PE, PP and PVC (kg/person) 65 58 Brazil: 46 23 25 31 21 22 18 19 18 20 17 2002 2003 2004 2005 2006 2007 2008 2009 2010 USA Europe Japan ChinaSource: Abiquim, Braskem, CMAI, Ipeadata and IBGE. 7
  • 8. Intangible value: the reasons behind strong relationship with customers in Brazil  Customers’ relationship (development  Export Plastic Program of solutions) Export  Plastic Chain Competitiveness Market  New applications for plastic / Incentives Forum applications with environmentalDevelopment benefits  Pro-plastic (with BNDES)  Technological innovation and sustainability solutions Chain  Industry technological agenda (with Capacity MDIC and ABDI)  Fiscal Isonomy  Qualified labor for third generation Domestic  Actions against tax distortions Market  Plastic image  Program related to transformed Defense goods quality / standardization  Environmental impact studies – plastic x Ersatz (life cycle)  Chain financing (R$3 billion)  “I’m green” seal Sustainability  Creation of FIDCs oriented to & Marketing  Brasilplast: fair as communication Fiscal customers channel for plastic image promotion campaigns Support  Chemical Industry National Agenda (sets forth the allocation of resources  Formula 1 campaign: green plastic, for investments in capital goods in recycling, wood plastic the plastic transformed goods industry)  Mechanical recycling 8
  • 9. Ownership Structure Leveraging relationship with Petrobras - World leader in - Conglomerate with Minority E&P in deep investments in Shareholders waters; different sectors; - Present in the - More than 30-years industry as in the petrochemical 50.1% / 38.2% 0.0% / 5.9% 2.8% / 20.1% 47.1% / 35.8% investor, supplier industry. Voting Shares / Total Shares and customer; - Investment Grade by all 3 Rating Agencies. • Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned Governance company • Board of Directors with 11 members: 6 nominated by Odebrecht, 4 by Petrobras and 1 independent • Sole vehicle for petrochemical investments of both shareholders, Braskem has the right: - to lead all petrochemical investments identified by Petrobras and Odebrecht.Source: Braskem 9
  • 10. Raw material matrix Diversification to compete globally Raw Material Profile* (2010) Current Braskem Post- Mexico Project 3% 3% 8% 13% 37% 30% 13% 18% Implementation of 24% 17% Project Pipeline 17% 92% 56% 69% 58% 15% 46% 67% 14% Quattor Braskem Braskem Braskem balanced and diversified supply of raw materials More America after Liquid (2) Refinery propylene Gas (1) Competitive gas price vs. international reference prices acquisitions Ethanol Propylene Naphtha / Condensate USG reference with competitive prices in 70% of US  66% of naphtha supplied by Petrobras with competitive supply price formula – based on international price  34% direct imports from various international suppliers Gas  100% Petrobras supply with competitive prices versus international prices Ethanol(1) Ethane, Propane and LHR (FCC off gas)(2) Naphtha and condensate *Based on resin-production capacity. Sunoco buys propylene directly 10
  • 11. Innovation & TechnologyInnovation and Technology CenterStrengthening the value chain competitivenessStructured resource base to support customer needs: Over R$ 330 million in R&D assets PP More than 190 researchers Coffee Bags 8 pilot plants More than 400 patents filed worldwide Partnership with universities and R&D centers in Brazil and abroad 12% of Polymer Business Unit revenues results from new products launched in the past 3 years PE Rotomolded Manhole PE Innovation pipeline BIOPOLYMERS PP NPV: ~US$ 510 million PVC PVC Doors 11
  • 12. Innovation & Technology PP - NEW PP WASHING MACHINES PP - LOW VOC AUTOMOTIVE GRADE Partners: Electrolux and Colormaq Partner: Lyondell-Basell Brazil Innovation: Steel and PET replacement in Innovation: High performance grade for washing machine body part (lower cost and automotive compounds. weight) Target Sales: 4 kton/year Target Sales: 6 kton/year PE - LARGE ROTOMOLDED WATER TANKS PE - GRAIN BAGS Partner: Fortlev Partner: Pacifil Innovation: Fiberglass tank replacement Innovation: Lower cost and faster installation Target Sales: 32 kton/year with flexible silos for grain storage Target Sales: 5 kton/year PVC - PVC WINDOWS PVC - PVC ROOF TILES (To be launched) PP Partners: Claris, Primeira Linha, Veka and Partners: Not disclosed now due to secrecy Weiku agreement Innovation: Increase PVC window profile Innovation: Asbestos and Clay roof tiles application in the market replacement Target Sales: 2 kton/year Target Sales: 120 kton/year 12
  • 13. Synergies from Quattor acquisition totaling R$377 million in EBITDA for 2011 2011 EBITDA*: R$377 million 2012 EBITDA*: R$495 millionR$ milhões R$ million R$ million R$ milhões 61 59 87 82 377 495 350 234 Industrial Industrial Logistics Logística Supply Suprimentos EBITDA Synergies EBITDA Sinergias Industrial Industrial Logistics Logística Supply Suprimentos EBITDA Synergies EBITDA Sinergias Identification of new opportunities, efficient and rapid implementation of initiatives to capture synergies  Integrated planning for industrial units Additional R$490 million in NPV  Centralized maintenance strategy of synergies that do not affect EBITDA – financial, fiscal, etc  Optimization of freight and gains in distribution and storage  Joint purchase of materials for industrial operationsSource: Braskem * Annual and Recurring 13
  • 14. Outlook on the global petrochemical industry Ethylene: Operating rate 2010MM ton Industry in 201020 94  Operating rates decreased in 4Q10 driven by the 91 90 89 88 rigorous winter in the Northern hemisphere and 86 84 *15 84 82 83 operational problems in Europe and Middle East 81 80 78 74  Competitive cost base allowed the US to10 70 operate at higher rates than other regions throughout 2010 5 60  Global operating rate at 83.5% in 2010, 3.1 p.p. over previous forecast 0 50 Europe N. America Asia M. East World Braskem  Demand grew by 6.7%, or 7.4 million ton. More than 50% higher than previous forecast Capacity 4Q Operating rate 4Q10 (%) Operating rate 3Q10 (%) Global Scenario  New capacity additions can lead to the closing Ethylene: Supply and Demand Balance down of non competitive assets, especially inMM ton Europe and Asia (Japan) 200 90.7 91.3 86.3 88.7  No significant expected change in ME 150 83.5 83.9 operating rate – structural problems in Iranian plants 100  High volatility in oil prices boosts naphtha prices. Prices of resins and basic petrochemicals 50 follow this trend 0  Expectation of improvement in the industry 2010 2011e 2012e 2013e 2014e 2015e profitability as of 2H11 Capacity Demand Operating Rate (%)Source: CMAI, Parpinelli Tecnon * Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days. 14
  • 15. Demand growth shall overcome new capacity additions Ethylene Demand 6.8% 6.7% Capacity 6.7% 5.2% 4.5% 4.4% 4.3% CAGR 10-15 (MM ton) 3.4% 4.4% 8.4% 5.2% 4.5% 4.4% 4.3% 4.0% 3.4% 6,521 3.2% 2.3% 2.6% Supply 3.3% 2.1% 2.6% 2.3% 2.5% 6,090 Asia 4,514 2.1% CAGR 10-15 Africa 6,521 9,010 2,805 6,090 2.8% Asia Middle East 2010 2011 2012 2013 3,216 3,423 2014 2015 4,514 3,814 3,229 400 3,417 Africa Europe 9,010 2,805 Middle East 2010 2011 2,652 2012 3,423 2013 2,545 2014 2015 Americas 468 3,216 1,816 3,814 2,462 3,229 3,774 400 3,417 Europe Closures 2,067 529 Demand Growth % 490 1,200 Supply Growth % 962 550 743 2,652 2,545 375 Americas Postponed/Delayed 468 1,816 (699) (150) 2,462 (1,282) (1,227) 3,774 Closures 2,067 529 1,200 490 Supply Growth % 743 962 550 375 Postponed/Delayed (1,282) (699) (150) Demand Growth % 2010 (1,227) 2011 2012 2013 2014 2015 -19% Delayed 2010 2011 2012 2013 2014 2015 -19% Delayed  Limited additional capacity until 2015  No new investments announced motivated by financial crisis  Sanctions in Qatar restrict investments in petrochemicals  No further availability of cheap gas for new projects in Middle East  Greenfield projects: 5-6 years to startupSource: CMAI, March/2011 15
  • 16. World indicative ethylene cash costsSource: CMAI 16
  • 17. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 17
  • 18. Strategic Vision “BECOME THE GLOBAL SUSTAINABLE CHEMICAL LEADER, INNOVATING FOR BETTER SERVE THE PEOPLE”. 18
  • 19. 3 Main growth/value driversBrazil The country will need a new thermoplastic plant per year until 2020 Gas supply from pre-salt exploration can bring competitiveness to the new projects in BrazilInternationalization Latin America and US as good alternatives for future competitive feedstock supply Partnerships with local players to develop local industry at competitive gas pricesSustainable Chemicals Initial focus in renewable raw materials with no changes for customers in terms of investments and applications Partnerships to enter other avenues in green products 19
  • 20. Brazil – adding value to the Vinyls chain PVC Expansion Operational start-up : May 2012 Expansion of 200 kton/y in PVC capacity in Alagoas, using EDC (1st intermediate product in the PVC chain) currently exported Investments of ~R$850 million Expected NPV ~US$450 million Long term financing from BNDES (up to R$525 million) and from BNB (R$200 million) at very competitive costs Expected disbursement of R$380 million in 2011 Support for Brazil’s infrastructure projects Brazil currently imports ~30% of its needs PVC Domestic Demand (kton) 1,119 982 950 857 31% 748 34% 26% 19% 17% Imports New Projects Domestic Sales Industrial Assets 2006 2007 2008 2009 2010Source: Braskem 20
  • 21. Brazil – adding value to the cracker chain Polybutadiene SBR SSBR NBR TR Styrene Butadiene Rubber Solution SBR Acrylonitrile Butadiene Thermoplastic Rubber Butadiene Rubber Operational start-up : 2013 Capacity: 100 kton/y Location: Triunfo (Rio Grande do Sul) Investments of R$300 million Raw material for the manufacture of rubber tires and synthetic rubbers Attractiveness worldwide Tighter market balance sustaining higher prices  Light feedstock expansion limiting the New Projects availability of C4 supply Industrial Assets Continuous consumption growth  Higher demand from emerging markets  Recovery of the mature marketsSource: Braskem 21
  • 22. Brazil – potential capacity expansion projects 2013 - 2015 2016 - 2018  ~ 130 kton/y through DBNs adding LDPE, HDPE and PE LLDPE in Bahia, Rio de Janeiro and São Paulo (southeast of Brazil)  ~ 100kton/y through DBNs in  COMPERJ – from 1.1 to 1.5 Rio Grande do Sul (south of million tons of ethylene Brazil) and São Paulo PP (southeast of Brazil) or 300 kton/y trhrough a Greenfield in Bahia (northeast of Brazil)  Greenfield adding ~250 PVC kton/y in the northeast of Brazil 22
  • 23. Sustainable Chemicals Development Green PP Green PE 2013 Partnerships for the 2010 – started development of competitive Innovation in bioplastic technologies up in 4Q10 market Successful track record for Production integrated withBraskem becomes implementing projects: green propylene Cooperation agreement witha global leader in term and costs Capture of 2.3t CO2/t PP Cenpes (Petrobras Research biopolymers Center) Capture of 2.5t CO2/t PE Partnership with Development of other cracks Customers streams to sustainable chemicals PE integrated project study 23
  • 24. Access to competitive feedstock The Ethylene XXI Project (Mexico) Mexico: Ethylene XXI Project Operational start-up: January 2015 JV between Braskem (65%) and the Mexican group IDESA (35%) for the purchase of ethane from PEMEX Integrated project: 1 Mton/y of ethylene and 1 Mton/y of PE Fixed Investment: US$ 2.5 billion over 5 years (project finance – 70% debt/30% equity) Expected NPV over US$ 3 billion Strategic partnership with Ineos and Lyondell Basell for PE plants technologies and with Technip for the cracker Financial Advisor hired: Sumitomo Bank Structuring of the participation of ECAs and MLAs1 – already received over US$ 6 billion in letters of interest 1 Export Credit Agency (ECA) and Multilateral Agency (MLA)Source: Braskem 24
  • 25. Mexican Polyethylene Market Currently deficit above 1.1 Mton (2010) - ~70% of the market – being supplied by US players Estimated deficit in 2015 (project start-up): 1.7 Mton Annual Growing rate foreseen: 4.5 % (Period: 2010-2025) Polyethylene Mexican Market 4,0 3,5 3,0 1,6 1,7MMton/year 2,5 1,3 1,4 1,5 1,0 1,1 1,2 0,7 0,8 0,9 2,0 1,5 1,4 1,5 1,1 1,3 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,2 1,1 1,0 1,1 1,0 1,1 1,1 1,1 0,5 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,5 0,5 0,6 0,7 0,7 0,8 0,8 0,4 0,5 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Supply Ethylene XXI Deficit 25
  • 26. Mexican Converters Industry3,500 plastics converters 84% small and micro companies More than 5 Mton of plastics conversion, with 1.8 Mton of Polyethylene Main application: Packaging (48% market)Sales to distributors: Braskem ≠ Pemex Converters Profile Big 4% Medium 12% Micros Small 60% 24% Total: 3,500 Converters 26
  • 27. Unique pipeline of growth in the Americas Consolidated Project Pipeline  Brownfield/Greenfield expansion projects in Brazil: PE and PP assets  Comperj – integrated complex in Rio  Ethylene XXI - Mexico de Janeiro (southeast Brazil) (+ 1,000 kton/y ethylene  New Biopolymers Plants in Brazil – and + 1,000 kton/y PE) integrated project (1st and 2nd  Green PE – already  Butadiene (100 kton/y) generation) operational (+ 200 kton/y ethylene)  Green PP  Peru(+ 600 to 1,000 kton/y (+ 30 kton/y ethylene/ ethylene/PE)  PVC Expansion propylene) (+ 200 kton/y)  Venezuela – under revaluation 2010 - 2012 2013 - 2015 Projects under evaluation  Resin Capacity CAGR for 2010-2015: +4.3% p.y.  Diversification of raw materials and world-class assets  Fiscal discipline  Excellent track record of projects executionSource: Braskem 27
  • 28. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 28
  • 29. Basic Petrochemicals priorities Operational excellence, as well as in HSE and cost competitiveness Maximize the capture of synergies from the integration process of Quattor’s Basic Chemicals business Ensure energy efficiency and competitive sources Redesign of the petrochemical complexes (chains and infrastructure), identifying opportunities to add value to available chains Detail the investment plan for meeting future domestic demand of basic petrochemicals Prepare and implement a plan to capture synergies from Petrobras refineries Identify business opportunities related to Pre-Salt, from existing product portfolio 29
  • 30. Polymers priorities Operational excellence, as well as in HSE and cost competitiveness Maximize synergies capture from the integration process of Quattor PE and PP businesses New product portfolio, reducing industrial and supply chain complexity with less SKU´s Continuous effort of Braskem with its customers to create value through innovation and cost efficiency, bringing new solutions to the people Plastics uses and advantages promotion Detail the investment plan for meeting the Brazilian demand for PE, PP and Vinyls Identify business opportunities related to Pre-Salt, from existing product portfolio 30
  • 31. International business priorities Conclude basic engineering (FEL 3) and project finance in order to obtain FID (final investment decision) for the Mexico Project in 2011 Identify and implement synergies opportunities from operations in USA and Mexico Advance in the integration and operational improvement process of the PP business in the USA Assess potential acquisition of assets in the USA, aimed at increasing Braskem’s market share and value creation (“smart buy”) Analyze opportunities related to shale gas availability Expand Braskem’s leadership in Sustainable Chemistry Ensure participation in potential projected in Peru, Venezuela and Bolivia 31
  • 32. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 32
  • 33. Main numbers for 2010 x 2009 Net Revenue (R$ million) Net Revenue (US$ million) Net Income (R$ million) +23% +36% +375% 27.829 1,889 15.833 22.647 11.620 398 2009 2010 2009 2010 2009 2010 Exports 23% 26% 23% 26% EBITDA (R$ million) EBITDA (US$ million) Dividends (R$ million) * +27% +139% +41% 4.055 666 2.308 3.181 1.638 278 2009 2010 2009 2010 2007 2010 % of Net 51% 40% Income* 2007: Last dividend distribution 33
  • 34. Capacity utilization rates were positively impacted by the improvement of Quattor’s assets Braskem consolidated operating rates % Quattor - Ethylene Ethylene Polyethylene Polypropylene PVC 89% 94% 94% 93% 83% 86% 87% 83% 85% 71% 78% 80% 63% 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 2009 2010 2009 2010 2009 2010  Raw material supply regularization, in the Southeast and Rio de Janeiro complex, gradually increased the operating rates of Quattor’s assets:  RJ unit presented a record rate of 93% in the last quarter of the year  Continuous operational improvement of existing assets (record production rates in the south complex)  Scheduled maintenance shutdown at Bahia’s cracker in the 4Q10 had a higher influence in the PVC production, partially impacting the average operating rate of PE and PPSource: Braskem *2009 data does not include Quattor expansion of 200 kton 34
  • 35. Value added products and potential market growth are key differentiators of value creation  Braskem’s Performance – 2009 Vs. 2010 (Thousand tons) Braskem  Origin of Imports in 2010 (PE, PP and PVC) +11% 3,413 3,072 Others 2009 2010 14% Europe 10% North America  Braskem’s Sales Profile – 2010 Asia 29% 10% OTHERS Mexico Colombia Argentina 1% 15% AGRIBUSINESS 21% 10% INDUSTRIAL 4% FOOD 29% PACKAGING 4% AUTOMOTIVE 6% RETAIL 7% Americas account for 67% of imports 9% 18%  Imports represented 26% of the HYGIENE AND 13% domestic market CLEANING CONSTRUCTION CONSUMER GOODSSource: Abiquim, Braskem 35
  • 36. Value creation through acquisitionsQuattor’s EBITDA Performance (R$ million) +19% 361 +41% 302 984 214 +78% +99% 554 107 1Q10 2Q10 3Q10 4Q10 2009 2010Braskem America’s EBITDA Performance (US$ million) 37 114 -30% +73% 32 26* 22 23 66 2009 2010 1Q10 2Q10 3Q10 4Q10 *Excluding the non-recurring positive ajustment in the inventory booking criteria of R$ 10 MM. 36
  • 37. Indebtedness and leverage decrease Dec 2009 Dec 2010 Gross Debt: R$ 17,637 MM -28% Gross Debt: R$ 12,728 MM Net Debt: R$ 11,417 MM -14% Net Debt: R$ 9,839 MM EBITDA: R$ 3,181 MM EBITDA: R$ 4,055 MM LEVERAGE Average Debt Term: 6.6 years Average Debt Term: 12.5 years Gross Debt/EBITDA: 5.54x Gross Debt/EBITDA: 3.14x Net Debt/EBITDA: 3.59x -32% Net Debt/EBITDA: 2.43x Change Million of R$ 2010 2009 (%) Net Financial Result -1.618 266 - Foreign Exchange Variation (FX) 405 2.782 -85% Monetary Variation (MV) -355 -511 -31% Net Financial Result Excluding FX and MV -1.668 -2.005 -17% Non-recurring Financial Expenses: R$464 million in 2010Source: Braskem 37
  • 38. Debt reduction and lengthening the average maturityof debt DEBT PROFILE Amortization Schedule(1) 2010 (million of R$) Foreing 12/31/2010 Entities 1% Gov. Entities Capital 26% 583* Market 20% 38% 393 13% 14% 13% 10% 11% 10% 2,594 2,889 1,733 1,820 8% 2,496 1,694 1,360 1,245 1,073 1,244 Banks 35% 2009 Foreing 12/31/10 2011 2012 2013 2014 2015 2016/ 2018/ 2020 Entities Cash 2017 2019 onwards 5% (1) Does not include transaction costs Invested in R$ Capital *US$350 million of Stand by Gov. Invested in US$ Market Entities 21% 22% Issue of US$450 million in perpetual bonds, project finance prepayment and others financing operations lengthened the average debt term to 12.5 years Corporate Credit Rating – Global Scale Agency Rating Outlook Reviewed in Banks S&P BBB- Stable 03/30/2011 52% Moody’s Baa3 Stable 03/31/2011  More balanced source of funds. Fitch Ratings BB+ Positive 01/11/2011 38
  • 39. Total Investment in 2011 is estimated at R$1.6 billion Investments Investimentos (R$ million R$ milhões) 1,777 1,644 373 Maintenance Shutdown 391 HSE For 2011, capex is estimated at R$ 127 85 142 Productivity 1.6 billion, out of which 211 94 Capacity Increase / PVC Alagoas approximately 30% destined to 283 407 Equipment Replacement capacity expansion projects, 20% to 6 Quantiq scheduled maintenance shutdowns, 343 243 Green PE and the remaining to operational 47 89 Mexico investments. 301 278 Others 2010 2011eSource: Braskem 39
  • 40. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 40
  • 41. Outlook and PrioritiesPetrochemical market Political instability in Arab countries and oil price volatility Global petrochemical scenario continues to be marked by recovery, but oversupply is still expected for 2011. Mitigating factors:  Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran  Strong demand from emerging countries like China, India and BrazilBraskem priorities Strengthening of the Brazilian petrochemical and plastics production chain Guarantee, through an investment plan, the supply to the Brazilian future market growth: ~2x GDP Ensure capture of identified synergies Add value through the acquired assets  Quattor: continue improvement in its operational efficiency  Braskem America: return above capital employed Ensure domestic competitive feedstock for both current assets and new capacities, strengthening the Brazilian petrochemical industry; Maintain the capital structure health, making viable the execution of the investment plan while maintaining the investment grade; Develop partnerships required for the Company’s growth; Ensure that Braskem follows its growth course towards a stronger and more competitive position in the global industry 41
  • 42. Braskem DayCarlos Fadigas CEO April 19, 2011