Braskem presentation 3_q08_20091201_en
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Braskem presentation 3_q08_20091201_en Braskem presentation 3_q08_20091201_en Presentation Transcript

  • 3Q08 EarningsConference 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 in this presentation are valid only on the date they are made (September 30, 2008) and the Company does not assume 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
  • 3Q08 Highlights Operating Performance : Net revenue grows to R$5 billion in 3Q08 High naphtha prices and FX rate had a negative impact of R$477million on COGS Higher operational efficiency and plants reliability as a result ofthe programmed maintenance stoppages in 2Q08.  Capacity utilization rates above 90% EBITDA of R$683 million in 3Q08, with a recovery in EBITDAmargin compared with 2Q08, to 13.6%  14% increase in PVC sales was the highlight for resins  Higher revenues from basic petrochemicals 3 View slide
  • 3Q08 HighlightsStrategic Actions: Merger of Ipiranga Petroquímica, Copesul and Petroquímica Paulíniainto Braskem Issue of US$725 million export prepayment facility at a cost ofLibor+1.75 p.p. Green Polymers:  Agreement with Toyota Tsusho to sell Green PE in Asia;  Certification of the green polypropylene. 4 View slide
  • Domestic Market Grows 9% YTDDomestic Sales 9M08 vs. 9M07 % Resin Market Share 9M08 +16% Other + 11 % +9% +9% + 4% 27 % 51%* 22 % Imports Braskem Brazilian PE PP PVC Resins Market* * Braskem market share includes sales of *Domestic Sales + Imports PVC imported by the CompanySource: Braskem / Abiquim 5
  • Main Economic Indicators R$ million Change Change ChangeMain Economic 3Q08 2Q08 3Q07 9M08 9M07Indicators (A) (B) % % (D) (E) % ( C) (A)/(B) (A)/( C) (D)/(E)Net Revenue 5,032 4,405 4,623 14 9 13,848 14,016 (1)EBITDA 683 519 755 31 (10) 1,785 2,529 (29) EBITDA Margin 13.6% 11.8% 16.3% 1.8 p.p. -2.8 p.p. 12.9% 18,0% -5.2 p.p.Net Financial Result (1,616) 407 (68) - 2,271 (1,409) (231) 511Net Income / Loss (849) 383 132 - - (384) 541 -Source: Braskem 6
  • EBITDAHigher basic petrochemical prices and domestic volumesovercome impacts from higher raw material costs FX impact 31 on revenue R$ million FX impact (24) on costs 8 75 7 291 683 (217) 519 2Q08 Prices Volume Exchange Others Raw 3Q08 Rate MaterialsSource: Braskem 7
  • Lengthening of Debt is a Priority in R$ million (10/30/08) Net Debt / EBITDA (x) Gross Debt: 10,184 3.42 Net Debt: 8,331 2.78 +23% Average Term: 10.5 years US$ 72% Jun08 Sep08 27% Cash and equivalents 1,853 1,185 1,108 16% 1,213 277 11% 10% 11% 9% 175 7% 6% 1,671 1,792 1,064 1,115 3% 894 956 640 67 598 282 8 9/30/08 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpétuos In R$ 2013 2015 2017 2020 In US$ Includes R$1.4 billion from the bridge loan used to acquire the petrochemical assets of the Ipiranga Group, R$1.2 billion maturing in 2009 and R$175 million in 2010. In October, this loan was exchanged for a US$725Source: Braskem million export prepayment facility with a 3- year grace period. 8
  • Financial Results Reflect FX Rate R$ million 3Q08 2Q08 1Q08 9M08 2007 Financial Result (1,616) 407 (200) (1,410) (284) Expenses (1,932) 473 (231) (1,690) (84) Income 316 (66) 30 280 (200) FX variation (1,351) 593 4 (753) 800 Loss (1,626) 708 25 (892) 1,133 Gain 275 (115) (21) 139 (334) FX Rate - EOP 1.91 1.59 1.75 1.91 1.77 FX Variation 20.25% -8.99% -1.25% 8.07% -17.15% 9
  • Priorities in 4Q08  Reduce fixed costs / expenses  Capture synergies from the IPQ/CPS acquisition  Focus on profitability of the business and competitiveness of the chain  Naphtha: negotiations with Petrobras  Green PE project: Investment decision 10
  • 3Q08 Earnings Conference CallVisit our website: www.braskem.com.br/ir