Teleconferência de resultados 3 t02 (versão inglês)

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Teleconferência de resultados 3 t02 (versão inglês)

  1. 1. Third Quarter 2002 Earnings A World Class Brazilian Petrochemical Company A World Class Brazilian Petrochemical Company José Carlos Grubisich Paul Altit1
  2. 2. Disclaimer – forward looking statements This presentation includes forward looking statements. Such information is not merely based on historical fact but also reflects management’s objectives and expectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan", "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks. Known risks include uncertainties which include, but are not limited to price and product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations, regularity in the sourcing of raw materials and in operations, among others. This presentation is based on events up to November 22, 2002 and Braskem is not liable to update the contents in the light of new information and/or future events. Braskem takes no responsibility for transactions or investment decisions made on the basis of information contained in this presentation.2
  3. 3. Nine-month results through September 30, 2002: Criteria Adopted in the Pro-Forma results: • The financial information for the companies comprising the Braskem group is considered as if these companies had been part of the corporate structure since the beginning of 2002. • The companies that comprise Braskem and are 100% consolidated in the result are: Braskem pp dita; OPP; Trikem; Polialden and Nitrocarbono; • The effects of the proportional consolidation of Braskem’s investments in Politeno and Copesul pursuant to CVM 247 are excluded. These investments are recognized in the Equity Income account.3
  4. 4. Braskem – The largest Latin American petrochemical company: 13 Plants in the main industrial centers: Alagoas PVC PVC Camaçari Clorine Soda Clorine Soda São Paulo HDPE HDPE LLDPE LLDPE Basic Basic Aratu Aratu Triunfo Petrochemical Caprolactam Petrochemical Caprolactam Port Port Complex Complex Terminal Terminal Assets with a replacement LDPE LDPE value of ~ US$ 4.5 Bi, excluding investments in Basic Basic HDPE HDPE Copesul and Politeno Petrochemica Petrochemica PP PP Complex Complex4
  5. 5. Positive Petrochemical Scenario – 2003 / 2007: ! Low sector margins inhibited investment in new capacity; ! Gradual transition to world economic recovery; ! Gradual stabilization of oil prices (from US$18.0/bl to US$ 22.0/bl); ! Naphtha : reduction in prices to between US$ 190/t and US$ 210/t; ! Capacity utilization levels and prices: gradual recovery reaching maximum profitability (“fly-up”) in 2005; ! Brazil – gradual recovery in economic growth (approx. 3% annually) and in the domestic thermoplastics market. New opportunities for consolidation. The next cycle could be one of the best periods for the sector5 Source: international consulting firms
  6. 6. Braskem - Market – Sales Volume (kton): PRINCIPAL PRODUCTS 9M 02 9M 01 Var. (%) ETHYLENE 708,833 800,981 - 12%(*) TOTAL THERMOPLASTICS 1,143,603 1,095,969 + 4% PE 494,217 482,181 + 2% PVC 297,691 292,338 + 2% PP 307,489 281,825 + 9% PET 44,206 39,626 + 12% (*) Maintenance and modernization stoppage at the Pyrolysis Plant #1 at the Basic Petrochemicals Complex, Camaçari (Ba)6
  7. 7. Braskem - Market – Net Revenues (R$ million): Business Units 2001 2002 Variation(%) Domestic Market 3,484 3,768 8% Basic Raw Material 1,353 1,505 11% Polyolefins 1,184 1,303 10% Vinyls 707 701 -1% Bus. Development 240 259 8% Export Market 783 1.126 44% Total Net Sales 4,266 4,894 15% Net Revenues per BN (Domestic Market) Basic raw material 7% Polyolefins 19% 40% Vinyls Bus. Development 35%7
  8. 8. Braskem – Industrial Performance - Production (kton): PRINCIPAL PRODUCTS 9M 02 9M 01 Var. (%) ETHYLENE 703,840 805,183 - 13% (*) TOTAL TERMOPLASTICS 1,099,964 1,105,426 0% PE 484,459 497,782 - 3% (*) PVC 273,919 265,345 + 3% PP 301,501 290,915 + 4% PET 40,085 51,384 - 22% (*) (*) Maintenance and modernization stoppage at the Pyrolysis Plant #1 at the Basic Petrochemicals Plant, Camaçari (Ba)8
  9. 9. Braskem – Industrial Performance – Average Utilization Rates: PRODUCTS 9M 02 9M 01 Oct/02 ETHYLENE 79% (*) 90% 102% TOTAL THERMOPLASTICS 83% 81% 95% PE 80% (*) 79% 91% PVC 82% 79% 95% PP 89% 86% 98% (*) Maintenance and Modernization Stoppage at the Pyrolysis Plant #1 at the Basic Petrochemicals Complex, Camaçari (Ba)9
  10. 10. Braskem – Operating Results - COGS (9M02): Depreciation 6% Personnel 4% Electric Energy 2% Others 24% Naphtha 64%10
  11. 11. Braskem – Operating Results - EBITDA (9M02): R$ million EBITDA – 2002 (Quaterly) 400 367 315 300 238 200 100 1Q 2Q 3Q11
  12. 12. Braskem – Variation in Operating Income * (9M02): 109 (470) 540 Inflation (IGP-M) = 13.3%; Reclassifications (R$ 10 MM) and Integration Process (R$15 MM) Insurance; Depreciation (transf. Other Oper. (63) from fixed assets in progress) Rev./Exp. (30) Variable Costs (23) 307 (14) 816 SG&A ** Average Price Fixed C./ 461 Deprec. Total ** Not including depreciation Sales Volume Participation in Deprec./ Controled/Associated Amort. Companies Expenses 9M01 * Operating Income = Operating Profit - Net. Fin. Res. + S/h. Equity 9M0212
  13. 13. Braskem – Financial Result and F/X Impact (9M02): (R$ million) 09/30/02 F/X Impact (2,367) Amortization of 2001 deferred F/X losses (190) Net F/X variation (A) (2,177) On F/X liabilties (2,374) On F/X assets 197 Financial Result without F/X translation effect (B) (736) Interest /Monetary Restatement (788) Interest (406) Monetary Restatement (382) Intercompany Loans 46 Banking Expenses (39) Others 45 FINANCIAL RESULT (A) + (B) (2,913)13
  14. 14. Braskem – Net Profit Variation (9M02): IT Minority Participation Operating Result* 403 9M01 355 53 9M02 (306) Other N/operating Rev./Exp. Loss for the Period * Operating Result = Operating Profit - Net Fin. Res. (2,104) + Shareholders’ Equity (238) (1,836) Net Financial Result Loss for the Period14
  15. 15. Braskem – Consolidated Debt (Sep/02): Braskem’s Net Debt In R$ at 09/30/02 Composition by Index R$7,698 (*) Payment Schedule IGP- M TJLP 50% 4% 14% CDI 42.1% 11% 40% 26.0% 30% Trade Finance ~ 47% 20% 15.2% 10.7% 10% 6.0% 0.0% 0% Oct 2002 to 2004 2005 2006 2007 2008 71% Dec 2003 US$ • Short Term includes: R$ 1.35 Bi of pre-export contracts; and • ~ R$ 700 million in working capital for Average Cost ~ US$ + 8 % pa financing operating cash flow requirements15 (*) Ignoring proportional consolidation of Copesul and Politeno.
  16. 16. Braskem – Operating Cash Generation (9M02): R$ million EBITDA 920,544 Principal variations Working Capital Variation 338,319 Financial Transactions/Trade Fin. Lines (pre-payments) 207,462 Others 46,916 Operating Cash Generation 1,513,24216
  17. 17. Braskem – Synergies arising from Integration (R$ MM/year): Position in September/02 14 53 Synergies already implemented have achieved Synergies already implemented have achieved an annual recurring gain of R$ 53 millions an annual recurring gain of R$ 53 millions 19 Reduction in operating expenses 6 Optimization 3 of the labor 11 force Procurement PIS/Cofins /Logistics IPI Total17
  18. 18. Braskem: Next steps in the Integration Process: Trikem OPP Polialden Nitrocarbono ! Braskem: operating on an integrated ! Braskem: operating on an integrated basis; basis; ! OPP Camaçari to be merged into ! OPP Camaçari to be merged into Braskem before the year-end; Braskem before the year-end; ! Nitrocarbono PSO being examined by ! Nitrocarbono PSO being examined by Note: Besides the above assets, Braskem Note: Besides the above assets, Braskem CVM (conclusion imminent); CVM (conclusion imminent); also holds the assets of the extinct Copene also holds the assets of the extinct Copene ! Trikem/Polialden: studies in progress. ! Trikem/Polialden: studies in progress.18
  19. 19. Braskem : An excellent investment opportunity ! ! Leading thermoplastics producer in Latin America ! Integrated operations enable synergies to be captured ! Consolidated businesses and superior margins, with adjustment of capital structure already under way; ! Qualifies immediately for Bovespa’s Level 1 corporate governance classification; will qualify for Level 2 in 2 years ! Adoption of 100% “tag along” rights for all shareholders ! High potential for creation of shareholder value A world class Brazilian Petrochemical Company !19
  20. 20. Abamec Presentations November 22, 2002 Third Quarter 2002 Earnings A World Class Brazilian Petrochemical Company A World Class Brazilian Petrochemical Company José Carlos Grubisich Paul Altit20

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