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Braskem presentation 1_q08_20091201_en Braskem presentation 1_q08_20091201_en Presentation Transcript

  • 1Q08 ResultsConference Call
  • Forward-looking Statements This presentation contains forward-looking statements. These statements do not represent historical fact, but rather reflect the beliefs and expectations of Braskem’s management. The words “anticipate”, “wish”, “expect”, “estimate”, “intend”, “forecast”, “plan”, “predict”, “project”, “target” and similar words are intended to identify these statements. Although Braskem believes that the expectations and assumptions reflected in these forward- looking statements are reasonable and based on information currently available to management, Braskem cannot guarantee future results or events. The forward-looking statements included in this presentation are valid only on the date on which they are made (March 31, 2008), and the Company does not undertake any obligation to update them in light of new information or future developments. Braskem is not responsible for any transaction or investment decision taken based on the information in this presentation. 2
  • Highlights 1Q08 vs. 1Q07Operating Performance • Brazilian resin market: +10% • Growth in domestic resin sales: + 7% • Domestic PVC Sales: + 13% • Record-high quarterly PVC production: 130 Kton • Reduction in fixed costs • Annual and recurring gains from synergies • R$ 77 MM in EBITDA • R$ 59 MM in other additional gains • Operational investments: R$ 242 MM 3
  • 1Q08 HighlightsConclusion of important strategic steps • Operational startup of new Paulínia unit • Cash inflow of R$252 million in April from sale of the interest in Petroflex, with profit of R$116 million • Consolidation of Brazil’s petrochemical sector • Conclusion of the acquisition of the Ipiranga Group’s petrochemical assets • SEAE and SDE executive departments recommend to antitrust authority CADE approval of the Investment Agreement between Braskem and Petrobras • Green Polymer Project 4
  • Production growth with higheroperating reliability Capacity Utilization % ETHYLENE PE PP PVC 104% 96% 95% 96% 96% 96% 93% 94% 92% 91% 89% 86% 88% 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 Resin Production Kton RECORDS 2,827 2,786  Production in last 12 700 702 704 months of 2,827 Kton +1%  Quarterly PVC production of 130 Kton in 1Q08 LTM LTM 1Q07 4Q07 1Q08 1Q07 1Q08 5Source: Braskem
  • Braskem maintains leadership position inrobust domestic market: Demand +10% Domestic Sales 1Q08 vs. 1Q07 % Resin Market Share 1Q08 +13% +10% Other +7% 29% + 6% +5% 49% 22% Imports Resin Brazilian PE PP PVC Braskem market* *Domestic sales + ImportsSource: Braskem / Abiquim 6
  • Evolution of EBITDACommercial strategy minimizes impacts from both higherNaphtha prices and exchange rate variation R$ million 108 28 FX impact 1,220 665 on costs FX impact (860) on revenue 853 (1,328) 583 (195) (103) 1Q07 Fixed Raw 1Q08 Prices Other Foreign Volume Costs/ Materials Exchange SG&ASource: Braskem 7
  • Evolution of EBITDACommercial strategy and reduction in fixed expensesminimize impacts from both higher Naphtha prices R$ million FX impact 83 on costs 19 112 FX impact (115) 188 on revenue 648 (263) (136) 583 (89) (32) 4Q07 Fixed Raw 1Q08 Prices Other Volume Foreign Costs/ Materials Exchange SG&ASource: Braskem 8
  • Main Economic Performance Indicators Main Economic Indicators 1Q08 1Q07 Chg.% R$ million Net Revenue 4,410 4,424 0 EBITDA 583 853 (32) EBITDA Margin 13.2 % 19.3 % -6.1 p.p. Net Financial Result (200) (104) 94 Net income before minority interest 120 275 (56) Net Income 83 127 (35)Source: Braskem 9
  • Lengthening of debt profile is a priority TJLP in R$ million (3/31/08) CDI Pré-fixado 8% 17% 2% Gross Debt: 9,363 Net Debt / EBITDA (x) Net Debt: 7,431 2.56 US$ 1.93 Bridge Average Term:10 years 23% Trade Loan Finance 23% +33% 27% 31% Dec-07 Mar-08 US$ 73% Cash and equivalents 1,932 1,668* 13% 1,143 10% 9% 9% 441* 8% 7% 7% 6% 1,241 894 789 974 827 786 767 534 617 614 3/31/08 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpetual In R$ 2013 2015 2017 2020 In US$ * Includes R$2.1 billion from bridge loan to acquire Ipiranga Group’s petrochemical assetsSource: Braskem 10
  • 2008 Outlook • Positive macroeconomic outlook • Brazil Investment Grade by Standard & Poor’s • Growth in domestic resin market of 10% • Industrial productivity leveraged by conclusion of stoppages • Acceleration of synergy gains • Fixed costs reduction • Venezuela • Conclusion of the economic and feasibility studies will allow investment decision on PP plant • Green Polymer • Investment Decision in first half 2008 • Implementation of Investment Agreement with Petrobras 11
  • 1Q08 Results Conference CallVisit our website: www.braskem.com.br/ri