Conference call presentation   3 q09 results
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  • 1. 3Q09 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 by 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 (September 30, 2009) and the Company does not assume anyobligation to update them in light of new information or future developmentsBraskem is not responsible for any transaction or investment decision takenbased on the information in this presentation. 2
  • 3. Global Scenario • 3Q09 was marked by a recovery in resin and petrochemical prices from 2Q09: - Restrictions on capacity utilization rates and operational problems - Stronger demand and higher naphtha prices • This upward price trend was reversed in September due to: - Lower raw material prices - New capacity coming on line, especially in Asia - Seasonal contraction of Chinese demand and destocking trend • Continued depreciation in the US dollar and higher investment in commodities, which have pressured naphtha and oil prices, bringing reduction for resin spreads in 4Q09 • New capacity coming on line and still-depressed demand should prolong the down cycle until 2011 • Uncertainty persists regarding the extent of the global economic recovery: the U.S. shows slight signs of recovery while developing countries register positive growthSource: Braskem / CMAI 3
  • 4. Regional Scenario • Braskem plants are operating at full capacity • Robust recovery in domestic demand in 3Q09 and favorable global scenario supported price increases - Recovery of the construction sector and signs of better performance in the agribusiness sector • Economic performance expected to keep domestic demand strong until November • Braskem sales outperform domestic market: - Domestic resin sales up 10% versus 2Q09, while domestic demand grew 9% • Net Revenue of R$4.0 billion, up 10% on 2Q09, driven by recoveries in domestic sales and in local and international prices • EBITDA grows 48% to R$838 million with 20.7% margin, up 5.4 p.p. on 2Q09. Year to date, EBITDA already totals R$1.9 billion. • Program to cut fixed costs generated savings of R$98 million in G&A expenses for 9M09Sources: Braskem 4
  • 5. Brazilian market expands 9%, reflectingeconomic recovery Domestic Sales in 3Q09 vs. 2Q09 % Resins Market Share in 3Q09 Imports 17% 15% 20% 10% 9% 53% 3% 27% Others PE PP PVC Total Brazilian Resins Market * * Braskem estimates: Domestic sales + ImportsSource: Braskem 5
  • 6. EBITDA Higher domestic prices and volumes fully offset BRL appreciation and higher raw material costs R$ million FX Impact on 274 Costs FX Impact on Revenue (445) 110 745 (252) (117) 838 (171) 566 (43) EBITDA Price Volume Raw Other FX Others EBITDA 2Q09 Material Variable 3Q09 CostsSource: Braskem 6
  • 7. EBITDA Savings in COGS, impact from FX gains and higher volumes fully offset lower resin prices R$ million FX Impact 605 on Revenue FX Impact (457) on Costs 142 148 607 1,300 726 838 (2,068) (17) EBITDA Raw Other FX Volume Price Others EBITDA 3Q08 Material Variable 3Q09 CostsSource: Braskem 7
  • 8. Comfortable cash position covers2 years of debt amortizations R$ Million (9/30/09) Gross Debt: 9,844 Net Debt: 6,687 Net Debt / EBITDA (x) R$ Net Debt / EBITDA (x) US$ Average Term: 9.75 years 65% of debt pegged to USD 3.16 -13% 2.74 3.25 3.21 3,157 1,296 Jun 09 Sep 09 Jun 09 Sep 09 PIFCO 17% 10% 13% 13% 12% 12% 192 9% 1,861 8% 1,644 1,254 6% 1,250 366 1,202 1,129 1,012 889 386 563 09/30/09 2009 2010 2011 2012 2013 2014/ 2016/ 2018/ 2020 onwards 2015 2017 2019 In US$ Value related to the loan granted by Petrobras subsidiary. R$366 In R$ million has been renegotiated for Nov/09 and R$192 million for Jan/10. Source: Braskem8
  • 9. Management’s main priorities • Continued strengthening of long-term relationship with Clients • Prioritizing financial health and liquidity • Productivity Program: cost reductions • Support the sustainability of Brazil’s petrochemical chain - dollar depreciation - higher taxes in India, China, USA and Europe - instability of North American economy recovery • Construction of Green PE plant • Projects in Latin America: competitive feedstock • Analysis of opportunities brought by crisis: selective acquisitions in North America Greater operational and financial strength 9
  • 10. 3Q09 EarningsConference Call