2. Forward-looking Statements
This presentation contains forward-looking statements. These statements are not
historical facts and are based on management’s objectives and estimates. The words
"anticipate", "believe", "expect", "estimate", "intend", "plan", "project", "aim" and similar
words indicate forward-looking statements. Although we believe they are based on
reasonable assumptions, these statements are based on the information currently
available to management and are subject to a number of risks and uncertainties.
The forward-looking statements in this presentation are valid only on the date they are
made (March 31, 2011) 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. Braskem: Leader in PE, PP and PVC production in
the Americas
Dominant market share in South America, with 69% of Diversified portfolio of petrochemical products,
the Brazilian market with focus on PE, PP and PVC
Strong growth track record with attractive project Annual capacity of 6,460 kton
pipeline in Brazil, Latin America and Sustainable 31 facilities in Brazil and USA
chemicals (focus on renewable raw materials) Naphtha and gas based crackers (70/30)
Listed in 3 stock exchanges: BM&FBovespa, NYSE and Petrobras as the main supplier in Brazil (~70%
Latibex - 100% tag along of naphtha needs and 100% of gas needs)
Investment grade rating by S&P and Moody’s
Market Cap (05/12/2011) – US$ 11.2 billion
EV – Net debt March 2011 – US$ 17.1 billion 3 PP
Financial Highlights
2010 LTM 2011
R$ billion Consolidated Consolidated
1 PVC
Net Revenue 27.8 28.6 + 2,9% 1 Chlorine-soda
EBITDA 4.1 4.1 - 1 naphtha cracker
4 PE
Net Debt/EBITDA 2.43x 2.37X - 2,5% 1 PP
1 PVC
1 gas cracker
Potential Short term 1 Chlorine-soda
1 PP
Upside 1 PE
1 naphtha
Synergies: 1 naphtha cracker cracker
- Additional EBITDA – R$ 495 million on a 1 ethanol cracker 2 PP
5 PE 3 PE
recurring basis as of 2012, out of which R$
2 PP
377 million in 2011
Expectation of cycle recovery as of 2012
Industrial Assets
3
4. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
4
5. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
5
6. Strategic Vision
“BECOME THE GLOBAL
SUSTAINABLE CHEMICAL
LEADER, INNOVATING
FOR BETTER SERVE THE
PEOPLE”.
6
7. 3 Main growth/value drivers
Brazil
The country will need a new thermoplastic plant per year until 2020
Gas supply from pre-salt exploration can bring competitiveness to the new
projects in Brazil
Internacionalization
Latin America and US as good alternatives for future competitive feedstock
supply
Partnerships with local players to develop local industry at competitive gas
prices
Sustainable Chemicals
Initial focus in renewable raw materials with no changes for customers in
terms of investments and applications
Partnerships to enter other avenues in green products
7
8. Brazil – adding value to the Vinyls chain
PVC Expansion
Operational start-up : May 2012
Expansion of 200 kton/y in PVC capacity in Alagoas, using EDC (1st
intermediate product in the PVC chain) currently exported
Investments of US$470 million
Expected NPV ~US$450 million
Total of R$149 million invested in 2010 and 2011 in the project
Expected disbursement of R$380 million in 2011
Long term financing from BNDES (up to R$525 million) and from BNB
(R$ 200 million) at very competitive costs
Support for Brazil’s infrastructure projects
Brazil currently imports ~30% of its needs
PVC Domestic Demand (kton)
1,119
982 950
857 31%
748 34% 26%
19%
17% Imports New Projects
Domestic Sales
Industrial Assets
2006 2007 2008 2009 2010
Source: Braskem 8
9. Brazil – adding value to the cracker chain
Polybutadiene SBR SSBR NBR TR
Styrene Butadiene Rubber Solution SBR Acrylonitrile Butadiene Thermoplastic Rubber
Butadiene
Rubber
Operational start-up : 2013
Capacity: 100 kton/y
Location: Triunfo (Rio Grande do Sul)
Investments of R$300 million
Pre-sales contracts have been firmed, receiving ~US$127 million of
payments in advance
Raw material for the manufacture of rubber tires and synthetic rubbers
Attractiveness worldwide
Tighter market balance sustaining higher prices
Light feedstock expansion limiting the availability of C4 supply New Projects
In 2010, butadiene prices increased by 50% from 2009 Industrial Assets
Continuous consumption growth
Higher demand from emerging markets
Recovery of the mature markets
Source: Braskem 9
10. Brazil – potential capacity expansion projects
2013 - 2015 2016 - 2018
~ 130 kton/y through DBNs
adding LDPE, HDPE and
PE LLDPE in Bahia, Rio de
Janeiro and São Paulo
(southeast of Brazil)
~ 100kton/y through DBNs in COMPERJ – from 1.1 to 1.5
Rio Grande do Sul (south of million tons of ethylene
Brazil) and São Paulo
PP (southeast of Brazil) or 300
kton/y through a greenfield
project
Greenfield adding ~250
PVC kton/y in the northeast of
Brazil
10
11. Sustainable Chemicals
Development
Green PP
Green PE 2013 Partnerships for the
2010 – started development of competitive
Innovation in bioplastic technologies
up in 4Q10
market
Successful track record for Production integrated with
Braskem becomes implementing projects: green propylene Cooperation agreement with
a global leader in term and costs Capture of 2.3t CO2/t PP Cenpes (Petrobras Research
biopolymers Center)
Capture of 2.5t CO2/t PE
Partnership with Development of other cracks
Customers streams to sustainable
chemicals
PE integrated project study
11
12. Access to competitive feedstock
The Ethylene XXI Project (Mexico)
Mexico: Ethylene XXI Project
Operational start-up: January 2015
JV between Braskem (65%) and the Mexican
group IDESA (35%) for the purchase of ethane
from PEMEX
Integrated project: 1 Mton/y of ethylene and
1 Mton/y of PE
Fixed Investment: US$ 2.5 billion over 5 years
(project finance – 70% debt/30% equity)
Expected NPV over US$ 3 billion
Strategic partnership with Ineos and Lyondell
Basell for PE plants technologies
Technip was selected as the technology supplier
for the ethylene cracker
Financial Advisor hired: Sumitomo Bank
Structuring of the participation of ECAs and Proj.
MLAs1 – already received over US$ 6 billion in EXXI in
2014
letters of interest
1 Export Credit Agency (ECA) and Multilateral Agency (MLA)
Source: Braskem 12
14. Mexican Converters Industry
3,500 plastics converters
84% small and micro companies
More than 5 Mton of plastics conversion, with 1.8 Mton of Polyethylene
Main application: Packaging (48% market)
Sales to distributors: Braskem ≠ Pemex
Converters Profile
Big
4% Medium
12%
Micros Small
60% 24%
Total: 3,500 Converters
14
15. Unique pipeline of growth in the Americas
Consolidated Project Pipeline
Brownfield/Greenfield expansion
projects in Brazil: PE and PP assets
Comperj – integrated complex in Rio
Ethylene XXI - Mexico de Janeiro (southeast Brazil)
(+ 1,000 kton/y ethylene New Biopolymers Plants in Brazil –
and + 1,000 kton/y PE) integrated project (1st and 2nd
Green PE – already Butadiene (100 kton/y) generation)
operational
(+ 200 kton/y ethylene) Green PP Peru(~1,000 kton/y ethylene/PE)
(+ 30 kton/y ethylene/ Venezuela – under revaluation
PVC Expansion propylene)
(+ 200 kton/y)
2010 - 2012 2013 - 2015 Projects under evaluation
Resin Capacity CAGR for 2010-2015: +4.3% p.y.
Diversification of raw materials and world-class assets
Fiscal discipline
Excellent track record of projects execution
Source: Braskem 15
16. Innovation & Technology
Innovation and Technology Center
Strenghtening the value chain competitiviness
Structured resource base to support customer needs:
Over R$ 330 million in R&D assets
PP
More than 190 researchers Coffee Bags
8 pilot plants
More than 400 patents filed worldwide
Partnership with universities and R&D centers in Brazil and abroad
12% of Polymer Business Unit revenues results from new products launched
in the past 3 years
PE
Rotomolded Manhole
PE
Innovation pipeline
BIOPOLYMERS PP
NPV: ~US$ 510 million
PVC
PVC Doors
16
17. Innovation & Technology
PP - NEW PP WASHING MACHINES PP - LOW VOC AUTOMOTIVE GRADE
Partners: Electrolux and Colormaq Partner: Lyondell-Basell Brazil
Innovation: Steel and PET replacement in Innovation: High performance grade for
washing machine body part (lower cost and automotive compounds.
weight) Target Sales: 4 kton/year
Target Sales: 6 kton/year
PE - LARGE ROTOMOLDED WATER TANKS PE - GRAIN BAGS
Partner: Fortlev Partner: Pacifil
Innovation: Fiberglass tank replacement Innovation: Lower cost and faster installation
Target Sales: 32 kton/year with flexible silos for grain storage
Target Sales: 5 kton/year
PVC - PVC WINDOWS PVC - PVC ROOF TILES (To be launched)
PP
Partners: Claris, Primeira Linha, Veka and Partners: Not disclosed now due to secrecy
Weiku agreement
Innovation: Increase PVC window profile Innovation: Asbestos and Clay roof tiles
application in the market replacement
Target Sales: 2 kton/year Target Sales: 120 kton/year
17
18. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
18
19. Outlook on the global petrochemical industry
Ethylene: Operating rate 1Q11
MM ton
20 Overview 1Q11
91 92
89 90
88 86
15 83 1 Naphtha prices following oil volatility
83 81 2
81 80 80
78 Unscheduled shutdowns and better market
74
10
70
demand in the mature markets
Chinese economy once again presented
5 60
growth above market estimates
0 50 Competitive gas prices bring advantage to
Europe N. America Asia M. East World Braskem US players
Capacity 1Q11 Operating rate 1Q11 (%) Operating rate 4Q10 (%)
Outlook
Ethylene: Supply and Demand Balance
MM ton
Scheduled maintenance shutdowns in
200 90.7 91.3 Europe and Asia
88.7
86.3
83.5 83.9 Upward price trend of resins and basic
150
petrochemicals, following higher costs
100 Continuous instability in Middle East
operations
50
Stronger global demand
0
2010 2011e 2012e 2013e 2014e 2015e
Capacity Demand Operating Rate (%)
1 Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days.
Source: CMAI, Parpinelli Tecnon 2 Impacted by the power blackout that occurred on February 4 in all states in Brazil's Northeast 19
20. Demand growth shall overcome new capacity
additions
Ethylene
Demand
6.8%
5.2% CAGR 10-15
Capacity 6.7% 4.5% 4.4% 4.3%
(MM ton) 3.4% 4.4%
4.0%
3.2%
2.3% 2.6% Supply
2.1%
Asia
CAGR 10-15
Africa 6,521
6,090
2.8%
Middle East 4,514
Europe
9,010 2,805
Americas 3,216 3,423
3,229 3,814 400 3,417
Closures
2,652 2,545
Postponed/Delayed 468 1,816 2,462
3,774
2,067 529 1,200 490
Supply Growth % 743 962 550
375
(1,282) (699) (150)
Demand Growth % (1,227)
2010 2011 2012 2013 2014 2015
-19% Delayed
Limited additional capacity until 2015
No new investments announced motivated by financial crisis
Sanctions in Qatar restrict investments in petrochemicals
No further availability of cheap gas for new projects
Greenfield projects: 4-5 years to startup
Source: CMAI, March/2011 20
21. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
21
22. Braskem: unique position in the global industry
Braskem responsible for over 60% of the capacity share of thermoplastic
resins* in South America – 69% market share in Brazil.
W.Europe
North America # 29 players
South America: # 32 players
Second player has
around 10% of Braskem’s
capacity
N.Asia
M.East ~# 150 players
Capacity (000 Metric Tons) # 38 players
S.Asia
Braskem: 5,510 Petroken: 180
~# 40 players
Ecopetrol: 548 PETROQUIM: 120
Mexichem: 416 Petroquímica Cuyo: 130
South America
PBB Polisur: 650 Polinter: 495 # 12 players
Pequiven: 185 Propilven: 115
Petro Dow: 42 Solvay Indupa: 541
Source: Analysts reports, CMAI capacity list * PE, PP and PVC 22
23. Brazil: strong potential growth
Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth% 2010 Market Share
Estimate: Resins Demand ~ 2.0x GDP
Others
15.0%
5%
10.0% Imports
2x GDP 26%
7.5%
1.0% 69%
4.5%
Braskem
-0.6%
2009 2010 2011e 2012e 2013e 2014e 2015e
Brazilian GDP (Growth %) Demand Growth (2x GDP) %
Per-capita Consumption of PE, PP and PVC (kg/person)
65
58
Brazil: 46
23 25 31
21 22
18 19 18 20
17
2002 2003 2004 2005 2006 2007 2008 2009 2010 USA Europe Japan China
Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE. 23
24. Domestic market performance
Braskem’s Sales Profile – 1Q11 Origin of Imports in 1Q11
(PE, PP and PVC)
OTHERS
Others
RETAIL 11% 11%
5% FOOD PACKAGING Europe
AGRIBUSINESS 32% 12%
5% North America
Asia 27%
AUTOMOTIVE 7% 10%
Mexico
Colombia
13% 1%
9% 14% Argentina
CONSTRUCTION 25%
9% 9% CONSUMER
GOODS
INDUSTRIAL HYGIENE AND
CLEANING
Americas account for 67% of imports
Imports represented 27% of the
domestic market
Source: Abiquim, Braskem 24
25. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
25
26. US ethane-based industry to remain more
competitive than naphtha based producers
Source: CMAI 26
27. Preference for light feed (ethane) and refineries low
utilization rates to shorten co-products supply worldwide
Global Base Chemical and Plastics
U.S. Shale Gas Advantange does not benefit all... Weighted Average Earnings Before Interest & Taxes
Segment Contribution – U.S. Dollars per Metric Ton
• Relative cost advantage accrues to the integrated
and gas basis contracted products
• Lower Btu values mean that lower feedstock and
eletricity prices are a potential but not a certainty –
market forces prevail
• Differentiated natural gas results in lower
generation of C4s and aromatics in steam crackers –
may change trade volumes
Relative Advantage Due to Natural Gas
A comparison of
MODERATE ADVANTAGE
Polyethylene
HIGHLY ADVANTAGE
some of the products Chlorine & Refinery
NO ADVANTAGE
Caustic Soda Products
impacted by the Ethylene
Oxide
Vinyls BTX
difference in natural Derivatives
EDC / VCM
gas values vs. Oil MEG, Amines,
Propylene
Styrenics (Methanol)
prices Alpha Olefins
Source: CMAI 27
28. Potential benefits for Braskem in this scenario
Co-products Revenue (US$)
Increased polymers competitiveness: 2,605
• gas-based projects; and 1,628 1,655 1,499 1.181
1,070
• increasing price scenario for co-products 867 801
824
920
498
165 265 395
(reducing naphtha based costs) 408 497 459
391
505
284
2006 2007 2008 2009 2010
Propylene Butadiene BTX
Raw Material Profile
Braskem Braskem Post-Acquisitions Braskem 2015* Braskem 2018**
3% 3% 2%
8% 13%
24%
33%
17%
51%
58% 15%
67% 13%
92%
Naphtha and Condensate Gas
*Considering Mexico Project
Refinery Propylene Ethanol **Considering Comperj Project
Source: Braskem 28
29. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
29
31. EBITDA performance: 1Q11 vs. 1Q10
Brazilian real appreciation and the increase in raw R$ million
material price were offset by higher prices of resins and
basic petrochemicals.
FX impact
on costs 284
FX impact
on revenue
(401)
4
244
910 (117) 919
( 78 )
( 29 ) ( 15 )
EBITDA Contribution Others FX Power Volume Fixed Costs EBITDA
1Q10 Margin Blackout Cost SG&A 1Q11
Source: Braskem 31
32. Leverage decrease and Braskem’s ratings raised to
investment grade
Amortization Schedule(1)
(R$ million)
03/31/2011
570*
21%
501
15% 15%
11% 10% 10% 2,598
2,890 10% 1,847 Gross debt pegged to dollar: 64%
1,891 8%
2,389 1,381 1,314
1,202 1,300 Net debt pegged to dollar: 79%
1,054
Corporate Credit Rating
Agency Rating Outlook Date
03/31/11 2011 2012 2013 2014 2015 2016/ 2018/ 2020
Cash 2017 2019 onwards Global Scale
Invested in R$ (1) Does not
include transaction costs Moody's Baa3 Stable 3/31/2011
Invested in US$ * Stand by of US$ 350 million S&P BBB- Stable 3/30/2011
Fitch BB+ Positive 1/11/2011
National Scale
Call of US$200 million in perpetual bonds issued in 2006, with Moody's Aa2.br Stable 3/31/2011
S&P brAAA Stable 3/30/2011
coupon of 9% p.a.. Issue of US$750 million in bonds with maturity
Fitch AA (bra) Positive 1/11/2011
in 2021 destined for short and medium term debt pre-payment,
with less atractive costs..
32
33. Synergies from Quattor acquisition totaling
R$75 million in 1Q11
EBITDA 1Q11*: R$75 million EBITDA 2011*: R$377 million
R$ million R$ million
61
82
19
377
24
75 234
32
Industrial Logistics Supply EBITDA Synergies Industrial Logistics Supply EBITDA Synergies
Identification of new opportunities, efficient and rapid implementation of initiatives to capture synergies
Integrated planning for industrial units
Centralized maintenance plan assets strategy
Optimization of freight and gains in distribution and storage
Joint purchase of materials for industrial operations
Fiscal gains and lower cost of debt
Source: Braskem * Annual and Recurring 33
34. Agenda
Vision and Growth pipeline
The Petrochemical Industry
South America and Brazil: an unique global position
Global competitiveness: gas x naphtha
Recent financial performance
Final considerations
34
35. Outlook and Priorities
Petrochemical market:
Naphtha price impacted by the oil price volatility
Global petrochemical scenario marked by recovery, but oversupply is still expected for 2011, improving from
2Q11. Mitigating factors:
Operational instability, delays on the startup of new plants, scheduled shutdowns in Europe and Asia and trade
sanctions imposed on Iran;
Higher prices of resins and basic petrochemicals;
Strong demand from emerging countries like China, India and Brazil.
Braskem’s priorities:
Strengthening of the Brazilian petrochemical and plastics production chain
To follow the domestic resins’ market growth: 9-10% in 2011 and regain the market share
Ensure capture of identified synergies
Adding value through the acquired assets
Quattor: continue improvement in its operational efficiency
Braskem America: return above capital employed
Maintaining liquidity and financial health
Growth Project
– PVC Alagoas expansion
– Project Ethylene XXI in Mexico, which is based in competitive raw material
– To define Comperj’s configuration with Petrobras
– Expand the use of renewable feedstock
Maintain the leadership in sustainable chemicals
35
38. Ownership Structure
Leveraging relationship with Petrobras
- World leader in
- Conglomerate; Minority E&P in deep
Shareholders waters;
- More than 30-years
in the petrochemical
- Present in the
industry;
industry as
50.1% / 38.2% 0.0% / 5.9% 2.8% / 20.1% 47.1% / 35.8% investor, supplier
- Investment Grade by
and client;
Moody’s and Fitch. Voting Shares / Total Shares
- Investment Grade
by all 3 Rating
Agencies.
• Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned
company
Governance
• Sole vehicle for petrochemical investments of both shareholders, Braskem has the right:
- to lead all petrochemical investments identified by Petrobras;
- if not of its interest, has the right to commercialize such products.
Source: Braskem 38
39. Leader in the Americas and a top 8 global player in
resins capacity
1st
Capacity in the Americas (kton/y)
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
transactions
10,914
World Capacity (kton/y)
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
transactions
operations 39
41. Resins demand by region
2010 Resins (PE, PP, PVC) Demand by region
Africa
3%
China Europe
27% 18%
North America
17%
Asia ex-China
23%
South America
6%
Middle East
6%
The Brazilian demand for resins represents 3% of global demand
Source: CMAI 2010 estimates 41
42. Capacity utilization rates were positively impacted by
the improvement of Quattor’s assets
Braskem consolidated operating rates %
Quattor - Ethylene
Ethylene Polyethylene Polypropylene PVC
89% 94%
94% 93% 83%
86% 87% 83% 85% 71%
78% 80% 63%
4Q09 1Q10 2Q10 3Q10 4Q10
2009 2010 2009 2010 2009 2010 2009 2010
Raw material supply regularization, in the Southeast and Rio de Janeiro complex, gradually increased
the operating rates of Quattor’s assets:
RJ unit presented a record rate of 93% in the last quarter of the year
Continuous operational improvement of existing assets (record production rates in the south
complex)
Scheduled maintenance shutdown at Bahia’s cracker in the 4Q10 had a higher influence in the PVC
production, partially impacting the average operating rate of PE and PP
Source: Braskem *2009 data does not include Quattor expansion of 200 kton 42
43. Revenues breakdown – 2010
Net Revenue by Product (1)
2010
Others 19%
Fuel 4%
ETBE 2%
Cumene 2% Resins
53%
BTX 8%
Butadiene 4%
Propylene 4%
Ethylene 4%
1 Does notinclude naphtha/ condensate/crude oil processing and distributor sales
* Benzene, Toluene, Paraxylene and Orthoxylene
Source: Braskem 43
44. 2010 COGS breakdown
COGS 2010 (1)
Deprec / Amort, Freight, 3.9%
7.0%
Others, 0.9%
Services, 1.5%
Naphtha , 53.1%
Labor, 3.1%
Other Variable
Costs, 7.2%
Natural Gas,
2.4%
Electric Energy,
4.3%
Gas as
feedstock, 16.9%
(1) Does not include naphtha / condensate / crude oil processing
and Quantiq costs
Source: Braskem 44
45. Exports Destination – 2010
Exports 2010
Others
Asia
1%
6%
Europe
15%
N. America
44%
S. America
28%
C. America
6%
The Export Market represents 26% of Company’s Net Revenue.
Source: Braskem 45
46. EBITDA performance: 2010 vs. 2009
R$ million
Contribution margin was positive impacted by the
higher sales volume and the improvement in resin-
naphtha spread. FX impacted by the appreciation in
Brazilian real. FX impact
on costs 2,089
FX impact
1,979 (3,140) on revenues
( 1,051 )
4,055
523 ( 441) (135)
3,181
EBITDA Volume Contribution FX Fixed Costs Non recurring EBITDA
2009 Margin SG&A * effect 2009** 2010
46
Source: Braskem *SG&A: R$244 million of non-recurring expenses in 2010 **2009 non-recurring effect amounts R$135 million
47. EBITDA performance: 1Q11 vs. 4Q10
R$ million
Higher resins and basic petrochemical prices didn’t
offset the increase in raw material cost and Brazilian FX impact
real appreciation. Sales volume, seasonally lower, were on costs 62
negatively impacted by the unscheduled maintenance
FX impact
shutdown in the northeast plants. (87) on revenue
71
1,074
( 81 ) 919
( 78)
( 35 ) ( 25) ( 7)
EBITDA Fixed Costs Contribution Power Volume FX Others EBITDA
4Q10 SG&A Margin Blackout Cost 1Q11
Source: Braskem 47
48. Debt Profile Mar/11
Gross Debt by Category Gross Debt by Index
Foreign Gov.
Entities CDI
1% 9%
TJLP
Brazilian Gov. 19% BRL - PRE
Entities 7%
26%
Capital Market
38%
USD-POS
9%
Banks USD-PRE
35% 55%
48
Source: Braskem
49. Outstanding Bonds & Outstanding Ratings
Coupon Yield **
Outstanding Bonds Maturity
(% p.a.) (% p.a.)
US$84.3 MM * Jan/2014 11.750 2.8
US$65.3 MM * Jun/2015 9.375 3.4
US$130.7 MM * Jan/2017 8.000 4.6
US$500 MM Jun/2018 7.250 5.1
US$750 MM May/2020 7.000 5.5
US$450 MM Perpetual 7.375 6.8
US$750 MM Apr/2021 5.750 5.5
* Post Tender Offer expired in April, 20th ** As of May, 13th
Corporate Credit Rating – Global Scale
Agency Rating Outlook Reviewed in
Fitch Ratings BB+ Positive 01/11/2011
S&P BBB- Stable 03/30/2011
Moody’s Baa3 Stable 03/31/2011
49
Source: Braskem / Bloomberg
50. Covenants
Net Debt/EBITDA
(R$ million) (US$ million)
-2% -2%
2.43x 2.37x 2.56x 2.52x
Dec 10 Mar 11 Dec 10 Mar 11
Facility Amount* Mar 11 Currency Type
Senior Notes R$ 500 MM R$ 500 MM R$ Issuance
Nippon Export and
US$80 MM US$33 MM US$ Maintenance
Investment Insurance
EPP (Export Pre-Payment) US$725 MM US$400 MM US$ Maintenance
*The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / EBITDA ratio.
50
Source: Braskem
