2Q13 Earnings
Conference Call
Investor Relations
São Paulo, August 9, 2013
Forward-looking Statements
2
This presentation contains forward-looking statements. These statements are not
historical fa...
2Q13 Highlights
3
 Crackers utilization rates of 94% in 2Q13.
 Braskem’s thermoplastic resin sales amounted to 947 kton,...
Brazil’s thermoplastic resins market and Braskem’s sales
4Sources: Alice / Braskem
 Brazil Thermoplastic Resins Market (k...
EBITDA – 2Q13 versus 1Q13
5
R$ million The EBITDA growth is explained, mainly, by the higher sales volume, the
positive i...
EBITDA – 1H12 versus 1H13
6
R$ million
 Spreads recovery and higher sales volume led to an increase in EBITDA in
the firs...
Export Hedge Accounting
7
 To better reflect the exchange variations impacts in its result and in compliance with account...
Longer debt profile with diversified financing sources. Commitment
to maintaining liquidity
Agency Rating Outlook Date
Fit...
Growth projects and Capex
9
 Maintaining its commitment to capital discipline, Braskem made R$ 1,060 million in operating...
Global outlook and petrochemical industry
Source: IHS, Bloomberg and Analysts reports 10
2013e 2014e 2015e 2016e 2017e
Afr...
Braskem's Priorities
 Focus on continually strengthening the relationship with Clients and regain its level of 70% of
mar...
2Q13 Earnings
Conference Call
Investor Relations
São Paulo, August 9, 2013
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Conf call 2q13_cvm

  1. 1. 2Q13 Earnings Conference Call Investor Relations São Paulo, August 9, 2013
  2. 2. Forward-looking Statements 2 This presentation contains forward-looking statements. These statements are not historical facts and are based on management’s objectives and estimates. The words "anticipate", "believe", "expect", "estimate", "intend", "plan", "project", "aim" and similar words indicate forward-looking statements. Although we believe they are based on reasonable assumptions, these statements are based on the information currently available 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 are made (June 30 2013) 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.
  3. 3. 2Q13 Highlights 3  Crackers utilization rates of 94% in 2Q13.  Braskem’s thermoplastic resin sales amounted to 947 kton, increasing 3% and 19% from 1Q13 and 2Q12.  EBITDA in 2Q13 reached R$1,051 million, increasing 12% from the previous quarter. In U.S. dollar, EBITDA amounted to US$506 million.  Integrated project in Mexico (Ethylene XXI): – The construction continued to advance, with the project’s physical completion reaching about 38%. – On July 24, 2013, the subsidiary Braskem-Idesa withdrew the first installment of the project finance in the amount of US$1,484 million. Braskem reimbursed US$649 million of this amount.  As of May 1st, Braskem decided to designate part of its dollar-denominated liabilities as hedge for its future exports.  Braskem’s leverage, as measured by the net debt/EBITDA ratio, continued its downward trend, and excluding the Mexico project from this analysis, it reached 3.01x, down 10% from 1Q13.
  4. 4. Brazil’s thermoplastic resins market and Braskem’s sales 4Sources: Alice / Braskem  Brazil Thermoplastic Resins Market (kton) +10% +26%  Braskem’s Sales – Domestic Market (kton) +3% +19% + 15% +14% 2,383 2,738 1H12 1H13 1,644 1,868 1H12 1H13 1,140 1,305 1,433 2Q12 1Q13 2Q13 798 921 947 2Q12 1Q13 2Q13
  5. 5. EBITDA – 2Q13 versus 1Q13 5 R$ million The EBITDA growth is explained, mainly, by the higher sales volume, the positive impact of exchange rate and the Company’s commitment to fixed costs reduction. 937 20 14 39 69 1,051 EBITDA 1Q13 Volume Contribution Margin Fixed Costs + SG&A + Others FX EBITDA 2Q13 FX impact on costs 333 FX impact on revenue (264)
  6. 6. EBITDA – 1H12 versus 1H13 6 R$ million  Spreads recovery and higher sales volume led to an increase in EBITDA in the first half. In addition, the U.S. dollar appreciation had a positive impact in the period. 1,629 344 1,285 137 242 348 1,988 EBITDA 1H12 Non-recurring items Recurring 1H12 EBITDA Volume Contribution Margin Fixed Costs + SG&A + Others FX EBITDA 1H13 468 ( ) (24) 1,549 (1,201) FX impact on costs FX impact on revenue
  7. 7. Export Hedge Accounting 7  To better reflect the exchange variations impacts in its result and in compliance with accounting standards IAS 39 and CPC 38, Braskem decided to designate, as of May 1, part of its dollar-denominated liabilities as a hedge for its future exports.  The exchange variation from these designated liabilities will be temporarily recorded under shareholders’ equity and transferred to the income statement only when such exports occur.  If hedge accounting had not been adopted, the financial result in 2Q13 would have been an expense of R$ 2,111 million. R$ million With Hedge Without Hedge With Hedge Without Hedge Exchange Variation (126) (1,571) 202 (1,243) Net Financial Result (666) (2,111) (773) (2,218) Net Profit (loss) (128) (1,082) 99 (855) 2Q13 1H13
  8. 8. Longer debt profile with diversified financing sources. Commitment to maintaining liquidity Agency Rating Outlook Date Fitch BBB- Negative 04/25/2013 S&P BBB- Stable 07/11/2013 Moody’s Baa3 Negative 04/24/2013 Rating Braskem – Global Scale Diversified Funding Sources Net Debt / EBITDA (US$) 8 US$ million 2Q13 1Q13  Net Debt 6,977 7,376 -5% EBITDA (LTM) 2,112 2,036 +4% Net Debt/EBITDA (ex Mexico) 3.01x* 3.34x -10% * Consolidated = 3.30x in 2Q13 Brazilianand ForeignGov. Entities 20% Capital Market 52% Gross Debt by Category Bridge Loan 8% Banks 28% 3,495 1,955 1,401 2,003 1,663 1,583 830 2,922 4,250 4,386 1,539 1,779 * 2013 2014 2015 2016 2017 2018/ 2019 2020/ 2021 2022 onwards 6/30/13 Cash 7% 11% 9% 8% 4% 15% 22% 23% 5,274 Invested in US$ Invested in R$ Amortization Schedule(1) (R$million) 6/30/2013 (1) Does not include transaction costs and Bridge Loan of the Mexico Project * US$600 million and R$450 million in Stand-by Credit Facilities
  9. 9. Growth projects and Capex 9  Maintaining its commitment to capital discipline, Braskem made R$ 1,060 million in operating investments in 1H13:  ~47% of the total, or R$ 493 million, was allocated to the Mexico Project.  In 2Q13, there was a resumption of disbursements via equity, which seek to balance the project’s financing structure (70% debt / 30% equity), and by the anticipation of certain disbursements due the progress of its construction. 1,332 204 173 536 2013e Maintenance/ Equipment Replacement/ Others Productivity/ HSE Comperj/ Acrylic Acid/ Splitter Mexico 2,244 1,332 204 536 173 2013e Comperj/ Acrylic Acid/ Splitter Mexico Productivity/ HSE Maintenance/ Equipment Replacement/ Others 2,244 486 52 493 29 1H13 1,060 Investments (R$ million)
  10. 10. Global outlook and petrochemical industry Source: IHS, Bloomberg and Analysts reports 10 2013e 2014e 2015e 2016e 2017e Africa& India Europe & CIS M.East Americas Asia  2013e spreads on average shall be higher than 2012.  Medium/long term  gradual recovery of spreads. 0 100 200 300 400 500 600 700 800 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Positive Scenario – Short Term Ethylene: Additional Capacity (Million ton)  China:  Uncertainty regarding the feasibility of new projects  High costs/investments in order to access feedstock  Infrastructure problems (logistics, availability of water for extraction and etc)  Iran:  U.S. embargo affects products sale  USA:  Greenfield projects are expected to come on stream as of 2016/2017 Spread – HDPE (USA) x Naphtha (in US$/ton) Jun-13 +55% 7.9 6.15.9 4.9 China China China China China Iran Iran Iran U.S 9.2 ~ 6.0 Annual Increase in Demand
  11. 11. Braskem's Priorities  Focus on continually strengthening the relationship with Clients and regain its level of 70% of market share in the domestic market share  Advance in the industrial policy for the petrochemical chain that continues to strengthen its competitiveness.  Boosting Braskem’s competitiveness by cost reductions, increase in utilizations rates and diversification of its feedstock.  Continue to progress in the greenfield project in Mexico and ensure that it is in line with its schedule (2015) and cost.  Advancing on the engineering studies for the industrial units of the Comperj project and defining the feedstock to be used by the complex.  Maintaining liquidity, cost discipline and financial health in a challenging macroeconomic scenario. 11
  12. 12. 2Q13 Earnings Conference Call Investor Relations São Paulo, August 9, 2013
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