Your SlideShare is downloading. ×
0
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Teleconferência de resultados 3 t03 (versão inglês)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Teleconferência de resultados 3 t03 (versão inglês)

213

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
213
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Presentation 9M03 Earnings November 11, 2003 José Carlos Grubisich Paul Altit
  • 2. Disclaimer – Forward-Looking StatementsThis presentation includes forward looking statements. Such information is notmerely based on historical fact but also reflects management’s objectives andexpectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan","predict", “forecast", “aim" and similar words, written and/or spoken, are intendedto identify affirmations which, necessarily, involve known and unknown risks.Known risks include uncertainties which include, but are not limited to price andproduct competition, market acceptance of products, the actions of competitors,regulatory approval, currency type and fluctuations, regularity in the sourcing ofraw materials and in operations, among others. This presentation is based onevents up to September 30, 2003 and Braskem is not liable to update the contentsin the light of new information and/or future events.Braskem takes no responsibility for transactions or investment decisions made onthe basis of information contained in this presentation. 2
  • 3. Braskem – 9M03 Earnings Highlights Net Revenues (R$ million) EBITDA (R$ million) +43% +36% 6,649 1,315 4,894 921 9M02 9M03 Net Income (R$ million) 9M02 9M03 411 9M02 Net Debt/EBITDA (LTM*) R$ 2,247 Adjusted Short-Term Debt** 468 (R$MM) 2,837 9M03 5.1 996 4.1 3.5 3.6 (1,836) Sep 2003 Sep 2003 AdjustedDec 2002 Mar 2003 Jun 2003 Sep 2003 Impact of Concluded (1,841)Last twelve months: without extraordinary items in 4Q02. Funding and in Progress 3Adjusted Proforma Short Term Debt ignores any effects of foreign exchange, fiscal, operating as well as other uncertainties that
  • 4. Braskem – Operating Performance Average Capacity Utilization (%) Main Products 1H03 9M03 9M02 ETHYLENE 79% 83% 79% Total Thermoplastics 81% 86% 80% PP 93% 96% 89% PE 75% 80% 74% PVC 79% 84% 82% 4
  • 5. Braskem – Sales Performance Sales Volume - Ton 3Q03 3Q02 Chg% 9M03 9M02 Chg% Main Products (A) (B) (A)/(B) (C) (D) (C)/(D) ETHYLENE* 288,395 278,828 3% 766,841 708,833 8% Total Thermoplastics 433,319 411,787 5% 1,159,983 1,143,603 1% PP 116,083 114,113 2% 322,698 307,489 5% PE 185,004 190,330 (3%) 491,629 494,217 (1%) PVC 115,863 93,727 24% 306,407 297,691 3% 5Of the total for the quarter, 138,000 tons (48%) were sold/transferred to Braskem’s Business
  • 6. Braskem – Export Sales (US$ MM) +22% Export Markets (in %) 495 9M03 +2% 405 North America 178 40%175 Asia 19% Europe3Q02 3Q03 9M02 9M03 19% Africa South America 19% 3% 6
  • 7. Simplified structure accelerating the capture of synergies 80% of Goal already reached ! Synergies* (R$ million) Goal =330 260 240 75 53 Sep/02 Dec/02 Jun/03 Sep/03 7
  • 8. Braskem – Income Statement Consistent Growth in Operating Profit Margins (R$ Million ) 3Q03 3Q02* Chg % 9M03 9M02* Chg % (A) (B) (A/B) (C) (D) (C/D) Net Revenue 2,203 2,197 - 6,649 4,894 37% Cost of Goods Sold (1,728) (1,760) (2%) (5,285) (3,987) 33% Gross Profit 475 437 9% 1,364 907 51% Gross Margin (%) 21.6% 19.9% 8.4% 20.5% 18.5% 10.7% EBITDA 461 367 26% 1,315 921 43%EBITDA Margin (%) 20.9% 16.7% 25.1% 19.8% 18.8% 5.3% Operating Profit (1) 940 816 15% 304 255 19% Net Financial Result (386) (1,672) (77%) (216) (2,913) (93%) Profit (Loss) fiscal year (58) (1,356) (96%) 411 (1,836) - Earnings per share (16.8) (399.0) - 119.03 (540.3) - (1) Before Financial Result 8
  • 9. SG&A (1) and Fixed Cash Cost (as % of Net Revenue) Focus on Managing the Competitiveness of Costs and Expenses Fixed Cash SG&A (1) Cost 9.8% 8.3% 5.9% 4.2% 9M02 9M03 9M02 9M03 91) Excluding Depreciation/Amortization
  • 10. Braskem - EBITDA Change (R$ million) 1,744 (1,317) Naphtha: (R$ 1.15 billion) Fuel Oil: (R$ 109 MM) Natural Gas: (R$ 23 MM) (62) 1,315 Fixed & Var. Costs Other 29 Operating 921 Revs./Exps. Sales Prices Volume 9M02 9M03 10
  • 11. Braskem – Steady EBITDA Growth EBITDA EBITDA margin (R$ million) Petrochemical Peers (%) Extraordinary Items Braskem Industry Average (*) 1,195 20 19 780* 450 461 14 11 367 315 405 415 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 9M02 9M03 (*) Average EBITDA margin for the following companies: Dow, DuPont, Solvay, Lyondell, Nova Chemicals and Georgia Gulfbased on public earnings data from 9M03. 9M02 includes Eastman and BASF in addition to those already mentioned. 11
  • 12. Braskem – Financial Management of Working Capital Focus on Liquidity and Reduction of Capital Costs Liquidity Cushion R$ 662 MM Greater (Cash, Finan. Aplic, Flexibility G.O.C. Securities) operational, + financial and CompetitiveFunding in the + strategic. & Reduction in Financial Average Reduction in cost of Financial Market finance lines from Cost banks and suppliers 12
  • 13. Braskem – Program for Refinancing and Funding of ~US$1.0 Billion Improved Results = Competitive Funding Opportunities 09/30/2003 Gross Debt: R$ 6.8 Bi Adjusted Short-Term Debt* Net Debt: R$ 6.2 Bi (R$MM) 1,731 R$1.2 Bi via 4-year debenture issue. 996 662 542 US$386 MM via MTN (3 tranches issued); Sep/03 Sep/03 Sep/03 Sep/03 Adjusted EBITDA Cash balance/ Tax Credit (Net Value) UDM Fin . Inv./Sec. Balance US$100 MM via pre-payment of used exports; Adjusted Amortization Schedule* (Gross Debt - %) R$200 MM via structuring of 34 Receivable Fund; 20 18 16 US$50 MM via a trade finance line for 3 9 naphtha imports. 2003 2004 2005 2006 2007 2008 Concluded In progress Oct03-Dec03 13djusted ST pro forma debt disregards any effect of FX, fiscal, or operating nature, as well as further uncertainties that may occur.
  • 14. Braskem – Exchange Risk ManagementBreakdown of Gross Debt by Index (Sep/03) Hedge Policy TJLP FINANCE LINES LINKED FINANCE LINES NOT CDI IGP-M 16% TO EXPORTS. LINKED TO EXPORTS 11% 5% Other 1% Trade Finance 100 100 ~28% 60% 60% 60 % 75 % 69% 0 0 Level of hedge protection contracted. Position on 09/30/2003 1. Hedge/Investments Non-export linked $ 472 MM 75% Hedge Finance Lines USD 416 MM 2. Export related $ 555 MM credits $ 138 MM Export linked Finance Lines 60% USD 186 MM (1 + 2) = USD 610 MM $ 310 MM USD 602MM 14
  • 15. Braskem – Share Price Performance in 2003 BAK 46560 39880 BRKM50020 Ibovespa 166400060 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Jan-03 15 Updated to: 11/07/2003
  • 16. The scenario looks promising for BraskemThe outlook is for higher thermoplastic resin prices on the international front,with improved margins;As confirmed by Chem Systems, the fly-up for the petrochemical sector isexpected for 2005;On the international front, there is also the outlook for a gradual reduction inoil and Naphtha prices in the next few years, providing the basis for aconsistent improvement in margins;Domestically, the outlook is for GDP growth - as of 2004. This factorassociated with the high degree of elasticity for thermoplastic resins in Brazil,indicate improved sales volumes to the domestic market.Should the above outlook become a reality, Braskem can be expected to reportimproved sales volumes, revenues and returns - as of 2004, onwards… Braskem: Major growth potential in sales volumes, revenues and margins. 16
  • 17. Braskem – an excellent investment opportunityLeader in the Latin American thermoplastics market.Integrated operations permitting capture of synergies.Consolidated businesses and superior margins.Incorporation of OPP and Nitrocarbono concluded and negotions withcommon shareholders of Trikem and Polialden in progress.Adherance to Bovespa’s corporate governance Level 1 and adhesion toLevel 2 (in 2 years).Stock split with a view to increased liquidityAdoption of 100% tag along rights for all shareholders.Listed on Latibex in October (“ticker symbol” XBRK).Strong future growth potential in volumes and returns. A world class Brazilian petrochemical company ! 17

×