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  • 1. 2Q08 ResultsConference Call
  • 2. Forward-looking StatementsThis presentation contains forward-looking statements. These statements donot represent historical fact, but rather reflect the beliefs and expectationsof Braskem’s management. The words “anticipate”, “wish”, “expect”,“estimate”, “intend”, “forecast”, “plan”, “predict”, “project”, “target” andsimilar words are intended to identify these statements. Although Braskembelieves that the expectations and assumptions reflected in these forward-looking statements are reasonable and based on information currentlyavailable to management, Braskem cannot guarantee future results or events.The forward-looking statements included in this presentation are valid onlyon the date on which they are made (June 30, 2008), and the Company doesnot undertake any obligation to update them in light of new information orfuture developments.Braskem is not responsible for any transaction or investment decision takenbased on the information in this presentation. 2
  • 3. Highlights 2Q08Operating Performance : Brazilian resin market grows 11% on 2Q08 x 2Q07 Braskem’s resin sales in the domestic market grow 17%, with marketshare of 53% Maintenance stoppage in Braskem’s 2 crackers: Increase of 25 kton/year in Triunfo’s ethylene capacity Naphtha ARA increases 48% on 2Q08 X 2Q07 and 50% on 1H08.Impact on costs reaches R$ 601 million in 1H08 Net income reaches R$ 383 million, positively impacted by theBrazilian Real appreciation 3
  • 4. Highlights 2Q08Strategic Steps: Acquisition of the petrochemical assets of Ipiranga Group approved by CADE Braskem owns 100% of the total capital of Ipiranga Petroquímica andPaulínia, and 99.2% of Copesul With the incorporation of Petrobras’ stake in these companies, Petrobras increased its stake in Braskem from 6.8% to 23.1% of the total capital Green Polymer: Location – Triunfo Investment - R$ 450 million to R$ 500 million MOU signed between Braskem, Petrobras and Petroperu 4
  • 5. PP and PVC high production levels in aquarter with maintenance stoppages Utilization Rate % ETHYLENE PE PP PVC 104% 97% 102% 96% 95% 96% 92% 89% 89% 88% 86% 74% 73% 2Q07 1Q08 2Q08 2Q07 1Q08 2Q08 2Q07 1Q08 2Q08 2Q07 1Q08 2Q08 Resin Production Kton 2,807 35 days of maintenance 2,744 707 704 stoppage in its two 624 crackers -2% -11% 14 days of maintenance stoppage in the PE LTM LTM 2Q07 1Q08 2Q08 plants 2Q07 2Q08 5Source: Braskem
  • 6. Braskem strengthens leadership positionin robust domestic market: Demand +11% Domestic Sales 2Q08 x 2Q07 % Resin Market Share 2Q08 + 18 % + 17% +17% Others +13% +11% 26% 53%* 21% Imports Resin Brazilian PE PP PVC Braskem market * * Braskem market-share includes sales of PVC imported by the Company*Domestic sales + ImportsSource: Braskem / Abiquim 6
  • 7. EBITDA Evolution Commercial strategy minimizes impact from Naphtha prices increases and foreign exchange rate appreciation 67 1,266 FX impact 763 on costs R$ million (1,089) FX impact on revenue 921 (1,179) 519 (326) (126) (104) 2Q07 Prices Fixed Raw Foreign Volume Non-recurring 2Q08 Costs/ Materials Exchange gains PIS/ SG&A Cofins 2Q07Source: Braskem 7
  • 8. EBITDA EvolutionIncrease in basic petrochemical prices and higher volumes indomestic market minimizes impacts from higher raw materials costs costs FX impact R$ million 185 on costs FX impact (246) on revenue 79 166 (136) 583 (193) (136) 519 (61) (39) (16) 1Q08 Prices Volume Raw Foreign Fixed Other 2Q08 Materials Exchange Costs/ SG&A Source: Braskem 8
  • 9. Main Economic Performance Indicators R$ millionMain Economic 2Q08 1Q08 2Q07 Chg. % Chg. % 1H08 1H07 Chg. %Indicators (A) (B) ( C) (A)/(B) (A)/( C) (D) (E) (D)/(E)Net Revenue 4,405 4,410 4,969 0 (11) 8,816 9,393 (6)EBITDA 519 583 921 (11) (44) 1,102 1,774 (38)Ebitda Margin 11.8% 13.2% 18.5% -1.4 p.p. -6.7 p.p. 12.5% 18.9% -6.4 p.p.Net Financial Result 407 (200) (59) - - 206 (163) -Net Income Before 384 120 420 220 (8) 504 695 (28)Minority InterestNet Income 383 83 281 362 36 465 408 14Source: Braskem 9
  • 10. Lengthening of debt profile is a priority TJLP CDI 14% 13% in million of R$ (06/30/08) Fixed 3% Bridge Loan Net Debt / Ebitda (x) 13% Gross Debt: Debt: 8,799 2.78 Net Debt: Debt: 6,968 2.56 US$ Trade 35% Finance +9% Average Term: 10.5 years Term: 22% US$ 70% Mar08 Jun08 25% Cash and equivalents 1,831 990 15% 1,134 11% 11% 11% 10% 145 6% 1,357 6% 5% 1,196 936 838 947 933 697 493 557 407 06/30/08 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpetuals 2013 2015 2017 2020 In R$ In US$ Includes R$ 1.1 billion from the bridge loan related to the acquistion of the petrochemical assets of the Ipiranga GroupSource: Braskem 10
  • 11. 2008 Outlook Emerging markets support the world’s growth, despite slowdown in the US economy High resin prices pressured by high raw materials costs Robust demand in the domestic resin market Improved productivity and industrial performance Acceleration of synergy gains and costs reduction Incorporation of the petrochemical assets of the Ipiranga Group Venezuela Conclusion of the economic and feasibility studies will allow investment decision on PP plant 11
  • 12. 2Q08 Results Conference CallVisit our website: www.braskem.com.br/ir