Meeting with
 Investors
4Q09 Results
Bernardo Gradin
      CEO
 Carlos Fadigas
      CFO
Luciana Ferreira
      IRO
Forward-looking Statements

This presentation contains forward-looking statements. These statements are statements that ar...
Agenda



         4Q09 Results




         Growth with Value Creation




                                      3
Agenda



         4Q09 Results




         Growth with Value Creation




                                      4
Global Scenario

        Recovery of resins and basic petrochemicals prices in the 4Q09:
             Increase in naphtha ...
Regional Scenario

         Braskem plants(a) operating at high rates


         The recovery of domestic demand for therm...
Highlights

       Resins production increased 10% in 2009, reaching 3.1 million tons

       Olefins and aromatics sales ...
Braskem still operating at high rates

          Capacity Utilization                      %
             ETHYLENE        ...
Health, Safety and Environmental Results

  Strong Improvement since 2002

Total Recordable Cases Accidents Rate          ...
Demand stability in 4Q09 reflects good
performance of the sectors
                                                        ...
Seasonal slowdown didn’t occur in 4Q09
 and market grows in 2009


    Domestic Sales in 2009 vs. 2008                    ...
EBITDA
 Prices increases are not sufficient to offset higher costs and
 lower sales volume

   R$ million
                ...
Main Economic Indicators


                                                                                           R$ m...
Comfortable cash position covers
 2 years of debt amortization
            R$ Million (12/31/09)
       Gross Debt:   9,76...
Agenda



         4Q09 Results




         Growth with Value Creation




                                      15
Petrochemical Cycle
Downcycle less severe than expected




   Points of concern                                          ...
Global supply of ethylene

 2009 expected utilization rate:
 Kton
45,000                                             90%
 ...
Strategic direction



                         Vision 2020: Leader in the
                        Americas, rank among th...
Drivers of the strategic direction



                                  Raw material
                                 avai...
Benefits and strategic drivers of the
acquisitions
 Quattor:
    Creation of a world scale player
    Diversification of f...
Braskem - # 1 Resin Producer in the
 Americas, now with plants in the USA


    Key Financials (2009 *):
    Gross revenue...
Leader in the Americas and a top 8
global player in resins capacity
           1th
       6,460

           510       5,30...
Acquisitions don’t significantly change
 leverage
        Strong liquidity with cash and cash equivalents of approximately...
Current assets distribution and
 projects location

                                     Industrial Assets              Gr...
Management’s main priorities


   Continued strengthening of long-term relationship with Customers
   Support to the Brazi...
Meeting with
 Investors
4Q09 Results
Bernardo Gradin
      CEO
 Carlos Fadigas
      CFO
Luciana Ferreira
      IRO
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Braskem 2009 results

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Braskem 2009 results

  1. 1. Meeting with Investors 4Q09 Results Bernardo Gradin CEO Carlos Fadigas CFO Luciana Ferreira IRO
  2. 2. Forward-looking Statements This presentation contains forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. The forward-looking statements in this presentation are valid only on the date they are made (December 31, 2009) 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. 2
  3. 3. Agenda 4Q09 Results Growth with Value Creation 3
  4. 4. Agenda 4Q09 Results Growth with Value Creation 4
  5. 5. Global Scenario Recovery of resins and basic petrochemicals prices in the 4Q09: Increase in naphtha and oil prices Operational problems and feedstock availability (winter season) Recovery of Chinese demand and developed markets Delays in the startups of new capacities, planned maintenance shutdowns and continued operational problems favor the short term scenario However, other factors may lead to a new downward trend in prices: Credit restriction announced by the Chinese government Sustainability of the European demand recovery High unemployment rates in the USA negatively impacting the recovery in consumption Additionally, the announcement of new capacities exceed the growth in world demand, which shall impact the profitability of the global petrochemical industry in 2010 and 2011 Source: Braskem / CMAI 5
  6. 6. Regional Scenario Braskem plants(a) operating at high rates The recovery of domestic demand for thermoplastic resins, intensified during 2H09, has led to a 1% growth in annual demand, which reached 4,2(b) million tons 4Q09 was not affected by seasonal downward cycle, consolidating the recovery in the Brazilian market Brazilian demand for finished goods remains strong in the beginning of 2010, which should support higher prices in the region, following the upward trend in international prices Argentina, after a seasonally weak period, shows signs of recovery in both prices and demand (a) Not including Quattor and Sunoco assets (b) Braskem estimates, as Abiquim did not disclose the Brazilian apparent consumption data. Source: Braskem / CMAI 6
  7. 7. Highlights Resins production increased 10% in 2009, reaching 3.1 million tons Olefins and aromatics sales grow more than 20% in 2009 Recovery in the domestic market and new opportunities in international markets Record production in 2Q09 and 3Q09 EBITDA reaches R$ 2.5 billion in 2009 with margin of 16.2%, 2.83 p.p. higher than 2008 Braskem, in association with IDESA, announces an integrated project in Mexico for the production of 1 million ton/year of ethylene and 1 million ton/year of PEs In January 2010, Braskem announced the acquisition of Quattor, becoming the leading thermoplastic resins producer in the Americas And ten days later, the Company announced the acquisition of polypropylene assets belonging to Sunoco Chemicals, an important step in its internationalization process Source: Braskem 7
  8. 8. Braskem still operating at high rates Capacity Utilization % ETHYLENE PE PP PVC 97% 94% 98% 95% 96% 99% 93% 90% 90% 73% 65% 69% 4Q08 3Q09 4Q09 4Q08 3Q09 4Q09 4Q08 3Q09 4Q09 4Q08 3Q09 4Q09 Resins Production Kton 857 815 Even with the reduction in operating 626 rates compared to the 3Q09, -5% crackers and 2nd generation units still present good operating performance in 4Q09 4Q08 3Q09 4Q09 Source: Braskem 8
  9. 9. Health, Safety and Environmental Results Strong Improvement since 2002 Total Recordable Cases Accidents Rate Effluents Water Consumption (employees and contractors – 1.000.000 mh) (m3/t) (m3/t) -54% -27% 5.12 -83% 2.71 5.49 2002 2002 2002 0.88 1.23 4.02 2009 Brazil CI: 2.8 2009 World CI: 27.8 2009 Brazil CI: 11.8 Lost Time Cases Accidents Rate Solid & Liquid Residues Energy Consumption (employees and contractors – 1.000.000 mh) (kg/t) (GJ/t) 0.85 -79 % 9.93 -72% 11.96 -6% 2002 2002 2002 0.18 2.76 11.22 World CI: 3.9 2009 Brazil CI: 11.9 2009 Brazil CI: 7.4 2009 2008 Brazilian Chemical Industry data (Abiquim 2009) Source: Braskem 2007 World Chemical Industry data (ICCA, 2009)
  10. 10. Demand stability in 4Q09 reflects good performance of the sectors +16% 0% Apparent Consumption 1,120 1,087 1,157 1,151 1,056 1,060 910 902 (000 tons) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 DURABLE GOODS 8% AGRIBUSINESS Sectors related to 5% consumer goods have driven the demand for thermoplastic resins CONSTRUCTION CONSUMER GOODS 21% 56% INDUSTRIAL 6% OTHERS 4% 10 Source: Abiquim, Braskem estimates
  11. 11. Seasonal slowdown didn’t occur in 4Q09 and market grows in 2009 Domestic Sales in 2009 vs. 2008 % 9% 0% 1% -2% -8% PE PP PVC Total Brazilian Resins Market* * Braskem estimates: Domestic sales + Imports Source: Braskem 11
  12. 12. EBITDA Prices increases are not sufficient to offset higher costs and lower sales volume R$ million FX impact on 203 costs FX impact on 73 Revenues (324) 287 838 (217) (112) (121) 614 (69) (65) EBITDA Price Tax Raw Other FX Volume Fixed Cost/ EBITDA 3Q09 Renegotiation Material Variable SG&A 4Q09 Program Costs Others Source: Braskem 12
  13. 13. Main Economic Indicators R$ million Main Economic 4Q09 3Q09 4Q08 Chg. % Chg. % 2009 2008 Chg. % Indicators (A) (B) ( C) (A)/(B) (A)/( C) (D) (E) (D)/(E) Net Revenue 4,253 4,047 4,273 5 0 15,248 18,541 (18) EBITDA 614 838 577 (27) 6 2,475 2,485 0 Ebitda Margin 14.4% 20.7% 13.5% -6.3 p.p. 0.9 p.p. 16.2% 13.4% 2.8 p.p. Net Financial Result (655) 243 (2,250) - (71) 572 (3,696) - Net Income (893) 645 (2,138) - (58) 917 (2,457) - Source: Braskem 13
  14. 14. Comfortable cash position covers 2 years of debt amortization R$ Million (12/31/09) Gross Debt: 9,760 Net Debt / EBITDA (x) R$ Net Debt / EBITDA (x) US$ Net Debt: 6,612 Average Term: 9.5 years -3% -7% 2.74 2.67 3.21 2.98 64% of debt pegged to USD 3,148 Sep 09 Dec 09 Sep 09 Dez 09 1,295 19% 17% 13% 12% 12% 12% 1,854 1,834 9% 1,642 6% 1,267 1,213 1,163 1,224 871 585 12/31/09 2010 2011 2012 2013 2014/ 2016/ 2018/ 2020 2015 2017 2019 onwards In US$ In R$ Source: Braskem 14
  15. 15. Agenda 4Q09 Results Growth with Value Creation 15
  16. 16. Petrochemical Cycle Downcycle less severe than expected Points of concern Potential positive factors Frequent delays in new capacities Uncertainty regarding the extent of Operational and logistics problems the global economic recovery Increased economic importance of Incentives to sustain supply buildup emerging countries with relevant China: import substitution Supply & Demand domestic consumption, as Brazil and Balance China New ethylene and resins capacities in the Middle East Supply-demand geographical Stronger activity of capital imbalance leads to logistics barriers investors in the commodity market Opportunities from assets on sale Limited utilization rates helps to balance the market Source: CMAI 16
  17. 17. Global supply of ethylene 2009 expected utilization rate: Kton 45,000 90% 84% 80% 40,000 74% Lower global demand 35,000 30,000 25,000 growth and new 20,000 15,000 capacity additions 10,000 5,000 expected to come on 0 North Europe Middle East Asia stream limiting the America utilization rates of the Nameplate Capacity Effective Production actual players New ethylene capacity additions globally (Mton): New capacity additions 12 10 could be delayed 8 6 4 Delayed 2 Go ahead 0 2009 2010 2011 2012 2013 Source: Parpinelli Tecnon / CMAI / SRI 17
  18. 18. Strategic direction Vision 2020: Leader in the Americas, rank among the 5 largest petrochemical companies worldwide and to be positioned as the preferred partner for global alliances Source: Braskem * Enterprise Value 18
  19. 19. Drivers of the strategic direction Raw material availability and energy at low cost Technological Corporate Autonomy Differentiation People International Diversification of Expansion in Products and Attractive Markets Businesses Source: Braskem 19
  20. 20. Benefits and strategic drivers of the acquisitions Quattor: Creation of a world scale player Diversification of feedstock supply Scale increase and geographic complementarities Operational synergies Strategic alignment with Petrobras: Comperj and Suape participation Value creation for all shareholders Sunoco: Internationalization through the acquisition of an important player in the north american market World scale player, technologically upgraded and with access to competitive feedstock Development of global production base in a market with further industry consolidation opportunities Foothold in the U.S. enhancing market for greenfield projects in Latin America The acquisition of Quattor and Sunoco’s PP assets reinforces Braskem objective of being among the top 5 global petrochemical companies in the world 20
  21. 21. Braskem - # 1 Resin Producer in the Americas, now with plants in the USA Key Financials (2009 *): Gross revenue R$ 27.5 billion Resins capacity (kton/year) Net revenue R$ 21.2 billion 6,460 EBITDA R$ 3.1 billion * Quattor LTM: Oct/08 to Sep/09 510 2,915 PVC Profile: PP 29 petrochemical plants : 26 in Brazil and PE 3 in the USA Listed on 3 stock exchanges: 3,035 BM&FBovespa, NYSE and Latibex Source: Braskem / Company estimates 21
  22. 22. Leader in the Americas and a top 8 global player in resins capacity 1th 6,460 510 5,307 4,827 4,256 4th 1,230 627 2,915 3,595 3,082 1,731 510 2,340 2,311 4,077 1,090 1,210 1,915 4,200 PVC 3,035 822 875 950 2,525 2,340 2,311 PP 1,995 1,050 1,040 950 PE Braskem Exxon Dow Lyondell Braskem Formosa Shintech Chevron Quattor Sunoco post Mobil Basell Philips operations 10,914 9,311 8,668 8th 7,749 7,284 7,109 6,541 6,460 4,681 4,564 12th 4,303 4,079 3,595 Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Braskem Total IPIC Reliance PetroChina Braskem Basell Mobil post operations 22
  23. 23. Acquisitions don’t significantly change leverage Strong liquidity with cash and cash equivalents of approximately R$8 billion (US$4.3 billion) Capital structure with significant leverage (Net Debt/EBITDA) of approximately 3x Estimated Capital Estimated Capital Increase R$4.5bi – Increase R$4.5bi – Sunoco Chemicals Quattor Acquisition Acquisition Cash & Cash Equiv. 8,065 7,435 Gross Debt 17,386 17,386 Net Debt 9,322 9,952 Net Debt / EBITDA 3.17x 3.23x Considering capital increase of only R$3.5 billion, leverage level is still comfortable: 3.51 to 3.56x Quattor data LTM Sep/09 Source: Braskem, Unipar and Sunoco 23
  24. 24. Current assets distribution and projects location Industrial Assets Greenfield Projects Bahia - Brazil Rio Grande do Sul- Brazil 1 naphtha cracker 1 Green PE 3 PE 1 PP Alagoas – Brazil 1 PVC 1 PVC 1 Chlorine - Soda Mexico Alagoas - Brazil 1 gas cracker 1 PVC 3 PE 1 Chlorine - Soda Peru São Paulo - Brazil 1 gas cracker 1 naphtha cracker 1 PE 2 PP Venezuela 3 PE 1 gas cracker 1 PP Rio de Janeiro - Brazil 1 PE 1 gas cracker 1 PP 3 PE New Projects(1) Rio Grande do Sul - Brazil with Petrobras 1 naphtha cracker 5 PE Comperj – RJ, Brazil 2 PP 1st and 2nd generations United States Suape – PE, Brazil 3 PP Textile complex (1) Analysis of economic viability, in Source: Braskem accordance to the Investment Agreement 24
  25. 25. Management’s main priorities Continued strengthening of long-term relationship with Customers Support to the Brazilian petrochemical chain sustainability Implementation of the acquisition stages of Quattor and Sunoco Chemicals Analysis of Braskem’s interest in the Suape (textile center) and Comperj (1st e 2nd generation) projects Construction of Green PE plant: on schedule and within planned Capex Projects in Latin America: competitive feedstock Assessment of selective acquisitions in North America Support alliances with global companies Prioritizing financial health and liquidity Greater operational and financial strength Internationalization 25
  26. 26. Meeting with Investors 4Q09 Results Bernardo Gradin CEO Carlos Fadigas CFO Luciana Ferreira IRO

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