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Conference call presentation 2 q09 results


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  • 1. 2Q09 EarningsConference Call
  • 2. Forward-looking StatementsThis presentation contains forward-looking statements. These statements do notrepresent historical fact, but rather reflect the beliefs and expectations ofBraskem’s management. The words “anticipate”, “wish”, “expect”, “estimate”,“intend”, “forecast”, “plan”, “predict”, “project”, “target” and similar wordsare intended to identify these statements. Although Braskem believes that theexpectations and assumptions reflected in these forward-looking statements arereasonable 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 datethey are made (June 30, 2009) and the Company does not assume any obligationto update them in light of new information or future developments.Braskem is not responsible for any transaction or investment decision takenbased on the information in this presentation. 2
  • 3. Global Scenario• Oil price influenced by reduced supply and financial market movements• Petrochemical prices recovery in the international market: • Asian demand acceleration • Supply restriction in the region • Stronger demand for gasoline (US driving season) and aromatics• Delays in the startup of new capacities in the Middle East• 12 MM tons of ethylene capacity lost in USA and Europe in 2009• Financial sector upturn is unsure• Downturn cycle can last until 2011 3
  • 4. Regional Scenario• Braskem plants operating at full capacity• Braskem’s Inventories at normal levels• Increased demand for thermoplastic resins in the Brazilian market: • Government incentives for automotive and white goods • Agribusiness and construction industries signaling a recovery in 2H09• Reduced volumes of imported resins and manufactured goods• Inventories levels in the chain are still low• Sales volume recovery for Mercosur, Bolivia and Andean countries 4
  • 5. 2Q09 HighlightsOperating Performance:. Net revenue reaches R$ 3.7 billion, 13% up on 1Q09, with sales recovery in the domestic market and prices retrieval in the exports market. EBITDA reaches R$ 566 million, with 15.3% margin. Net income grows R$ 1,146 million over 1Q09: exchange appreciation and upturn in profitabilityStrategic Actions:. Merger of Petroquímica Triunfo. Startup of ETBE plant in the Camaçari Petrochemical Complex: + 210 ktAchievements:. Raising of R$ 250 million through a receivables-backed investment fund (FIDC) with weighted remuneration of CDI + 1.85% p.a.. SG&A reduction reaches R$ 50 million in the first six months of 2009 5
  • 6. Brazilian market showing significant evolution Domestic Sales 1Q09 x 2Q09 % Resins Market Share 2Q09 55% Imports 19% 29% 27% 53% 16% 18% 28% Others PE’s PP PVC Total Brazilian Resinas Market * * Braskem estimates: Domestic sales + importsSource: Braskem 6
  • 7. EBITDA Higher basic petrochemicals prices and sales volume overcome exchange appreciation and raw material cost increase R$ million FX Impact 247 on Costs FX Impact on Revenue (334) 539 65 ( 232 ) ( 96 ) 566 457 ( 87 ) ( 57 ) ( 24 ) EBITDA Price Volume Raw Others FX Other Costs + EBITDA 1Q09 Material PIS/ Variable SG&A 2Q09 COFINS Costs 7Source: Braskem
  • 8. EBITDA Positive FX impact, COGS gains and increased sales volume offset lower resin prices R$ million FX Impact 1,171 on Revenue FX Impact on Costs (890) 280 111 36 23 407 1,661 557 566 (2,509) EBITDA Raw Other FX Volume Others Costs + Price EBITDA 2Q08 material Variable SG&A 2Q09 Costs 8Source: Braskem
  • 9. Comfortable cash position, coveringover 2 years of debt amortization R$ Million (06/30/09) Gross Debt: Debt: 10,583 Net Debt / Ebitda (x) R$ Net Debt / Ebitda (x) US$ Net Debt: Debt: 7,347 Average Term: 10.1 years Term: 3.97 -20% 6% 3.16 3.25 3.4367% of the debt are pegged to the USD 3,236 Mar 09 Jun 09 Mar 09 Jun 09 1,468 PFICO 15% 13% 13% 12% 11% 11% 10% 9% 1,768 610 1,617 6% 1,326 1,288 1,209 1,372 1,091 976 526 615 06/30/09 2009 2010 2011 2012 2013 2014/ 2016/ 2018/ 2020 onwards 2015 2017 2019 In US$ Value related to the loan granted by a Petrobras subsidiary for the In R$ delisting of Copesul, due in October 2009. Source: Braskem 9
  • 10. Focus Continuous strengthening of long-term relationship with Clients Priority over financial health and liquidity Productivity Program: cost reduction Support the sustainability of the Brazilian petrochemical chain Construction of the Green PE plant Projects in Venezuela Analysis of opportunities arising from crisis: selective acquisitions in North America Operational renewal: over 500 employees by 2011 Greater operational and financial strength 10
  • 11. 2Q09 EarningsConference Call