Earnings Conference Call            4Q06 and 2006José Carlos Grubisich   Carlos Fadigas
Forward-looking StatementsThis presentation contains forward-looking statements. Such statements are notstatements of hist...
Highlights of the PeriodStrong demand* growth in the domestic market     Resins demand growth of 315,000 tons in 2006     ...
Highlights of the period  Record Gross Revenues of approximately US$7 billion, a 8% growth over 2005;  Strengthening of Br...
Highlights of the period   Lengthening of the Company’s average debt maturity from 11 to 16 years;   Selection as part of ...
Highlights of the PeriodPositive evolution of EBITDA and EBITDA marginEBITDA                           R$ million   EBITDA...
Braskem Figures – 4Q06Significant EBITDA growth and improved profitability  Net Revenue                  R$ million    EBI...
EBITDA EvolutionDecreasing costs of raw material boosts 4Q06 EBITDA                                                       ...
Main SG&A Variations – 4Q06 vs. 3Q06                                                                                      ...
Financial Result                                                           4Q06      3Q06       Chg %          (R$ million...
Debt Profile Higher level of cash and cash equivalents coupled with a debt profile compatible with the cash flow from oper...
InvestmentsOver R$ 700 million invested in 2006     (R$ million)                                         Highlights:      ...
Outlook for 2007  Global supply-demand balance for thermoplastic resins remains favorable;  High utilization capacity rate...
Earnings Conference Call            4Q06 and 2006José Carlos Grubisich   Carlos Fadigas
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Braskem presentation 4_q06_20091201_en

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Transcript of "Braskem presentation 4_q06_20091201_en"

  1. 1. Earnings Conference Call 4Q06 and 2006José Carlos Grubisich Carlos Fadigas
  2. 2. Forward-looking StatementsThis presentation contains forward-looking statements. Such statements are notstatements of historical facts, and reflect the beliefs and expectations of Braskem’smanagement. The words “anticipates”, “wishes”, “expects”, “estimates”, “intends”,“forecasts”, “plans”, “predicts”, “projects”, “targets” and similar words are intendedto identify these statements. Although Braskem believes that expectations andassumptions reflected in the forward-looking statements are reasonable based oninformation currently available to Braskem’s management, Braskem cannot guaranteefuture results or events.Forward-looking statements included in this presentation speak only as of the date theyare made (December 31, 2006), and the Company does not undertake any obligation toupdate them in light of new information or future developments.Braskem shall not be responsible for any transaction or investment decisions that aretaken based on information included in this presentation. 2
  3. 3. Highlights of the PeriodStrong demand* growth in the domestic market Resins demand growth of 315,000 tons in 2006 2006 x 2005 % +12% +9% +8% +8% PVC PE PP Resins*Domestic sales + ImportsSource: Abiquim 3
  4. 4. Highlights of the period Record Gross Revenues of approximately US$7 billion, a 8% growth over 2005; Strengthening of Braskem’s leading position in the resins market (PE, PP and PVC); Acquisition of Politeno’s control: – Integration of operations completed; – Volume of synergies initially identified confirmed: US$ 110 million in NPV; – Portfolio of products and customers improved; – Identification of new synergies underway Inovation & Technology – Launching of the 1st Brazilian resin using Nanotechnology (PP grade); – 14 new patents registered in 2006; – 20% of resins revenue from products developed in the last 3 years Increased efficiency and productivity – Conclusion of Braskem + one year ahead of schedule with overcoming results – Successful implementation of Formula Braskem as planned; 4
  5. 5. Highlights of the period Lengthening of the Company’s average debt maturity from 11 to 16 years; Selection as part of the Bovespa’s Corporate Sustainability Index (ISE) for the second consecutive year in a row; International recognition in Corporate Governance: – Highest corporate governance rating among Brazilian companies in a survey conducted by GovernanceMetrics International (GMI); Implementation of a Share Buyback Program as planned; Launch of PP Paulinia’s plant cornerstone and construction start up 5
  6. 6. Highlights of the PeriodPositive evolution of EBITDA and EBITDA marginEBITDA R$ million EBITDA Margin % 530 +18% 417 461 +15% +14% 253 +9% 1Q06 2Q06 3Q06 4Q06 1Q06 2Q06 3Q06 4Q06Source: Braskem 6
  7. 7. Braskem Figures – 4Q06Significant EBITDA growth and improved profitability Net Revenue R$ million EBITDA R$ million Net Income / Loss R$ million 461 530 78 3,277 461 2,974 +143 +15% -9% 3Q06 4Q06 3Q06 4Q06 3Q06 4Q06 -65 Last 12 Exports US$ million EBITDA US$ million Net Debt / EBITDA 461 Months 396 396 247 2.96 212 2.72 +17% -8% 3Q06 4Q06 3Q06 4Q06 Sep Dec 06 06 %NR 26% 29%Source: Braskem 7
  8. 8. EBITDA EvolutionDecreasing costs of raw material boosts 4Q06 EBITDA R$ million 34 215 (97) 530 (75) 461 (7) 3Q06 Raw Price Volume Others FX Rate 4Q06 Materials 8Source: Braskem
  9. 9. Main SG&A Variations – 4Q06 vs. 3Q06 R$ million Exports 275 Volume 14% higher 9 5 12 16 215 18 3Q06 Service Accounting Export Distribution Other 4Q06 Expenses Standard Expenses Logistic Expenses (Consulting Adequacy Expenses and Legal) 9Source: Braskem
  10. 10. Financial Result 4Q06 3Q06 Chg % (R$ million) Net Financial Result (A) (B) (A)/(B) Net Financial Results (239) (330) -28% Foreign Exchange Variation - FXV 35 (50) - Monetary Variation - MV (55) (54) 2% Financial Results Excluding FXV and MV (218) (227) -4% (227) (218) (25) 13 11 10 CPMF, IOF / Interests and SELIC Tax Hedge / Working Vendor Provision Others Capital 3Q06 4Q06Source: Braskem 10
  11. 11. Debt Profile Higher level of cash and cash equivalents coupled with a debt profile compatible with the cash flow from operations AMORTIZATION SCHEDULE TJLP CDI 12/31/2006 - (R$ million) 23% 26% Pre 2% Gross Debt: 6,295 Trade Finance 8% Net Debt: 4,513 US$ 41% US$ 49% 1,782 25% Avg. maturity: 16 years 695 R$ 14% 12% 12% 1,131* 10% 9% 7% 859 6% 1.087 648 5% 748 US$ 565 755 451 362 343 431December 31, 2006 2007 2008 2009 2010 2011/ 2013/ 2015/ 2017/ Perpetual 2012 2014 2016 2018 Cash and cash *Subordinated debentures fully subscribed by the controlling shareholder, with payment of interest and principal equivalents in July 2007. 11
  12. 12. InvestmentsOver R$ 700 million invested in 2006 (R$ million) Highlights: 719 • Competitiveness Programs: Capacity Increases 93 199 Equipment Healthy, Safety • Isoprene capacity expansion: + 9kt 153 and Environment • Polyethylene Debottlenecking: + 30 kt 54 Technology Productivity 119 97 Information System This amount doesn’t include: 4 Quality and Others Maintenance Shutdowns R$ 150 MM Capitalized Interests R$ 83 MM 2006 Investments in Paulínia R$ 15 MM Politeno Acquisition R$ 238 MMSource: Braskem 12
  13. 13. Outlook for 2007 Global supply-demand balance for thermoplastic resins remains favorable; High utilization capacity rates globally; Sustained prices scenario for resins and other petrochemical products; Average oil prices expected to be lower in 2007 compared to 2006; Domestic demand for resins positively impacted by Brazilian GDP growing scenario; Operating investments estimated at R$ 550 million; Start-up of the PP project in Paulínia in 1Q08, with investments of R$ 80 MM in 2007; Attractive perspectives of both projects – PP and Jose Complex - in Venezuela confirmed, with investment case to be concluded by the end of 2007. 13
  14. 14. Earnings Conference Call 4Q06 and 2006José Carlos Grubisich Carlos Fadigas
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