2. Agenda
Business overview and main priorities
Industrial overview
Products and markets
Naphtha
Ethanol
Questions
2
3. Agenda
Business overview and main priorities
Industrial overview
Products and markets
Naphtha
Ethanol
Questions
3
4. Did you know that...
BRASKEM’S BASIC
PETROCHEMICALS EVERY YEAR OUR
PRODUCTION SHIPPING WE ARE THE
RESPONDS FOR CARGOS
1 st
CORRESPOND TO
70% 40 LARGER
FREE NAPHTHA BUYERS
OF THE OF THE WORLD
TRAVELS AROUND THE
BRAZILIAN GLOBE
DEMAND
Water treatment WHAT IF WE Power Generation
Capacity WERE A Capacity
2.8 mm citizens CITY 1.6 mm citizens
4
5. Main priorities
Be a world reference in HSE, Sustainability and Social Responsibility;
Develop opportunities with clients to ensure operation at full
capacity;
Implement actions to optimize costs and be a world reference in our
segment, with focus on reducing physical losses and energy
consumption at industrial plants;
Ensuring Energy Efficiency and competitive sources for acquisition;
Develop leaders to meet growth projects, acquisitions and
international challenges, identifying and preparing new generations
for Greenfields projects.
5
6. Structure
Isabel Figueiredo
Commercial
Andrea Jucá Renato Costa
New Business
Human Resources
Development
Hardi Schuck
Supply Chain
Vinícius Patel Andre Gohn
Controlling and
Energy
Planning
José Kelso Moraes
Industrial - BA
Bernardo Gradin Manoel Carnaúba
CEO Vice-President
Ademir Zaparoli
Industrial - RS
6
7. Agenda
Business overview and main priorities
Industrial overview
Products and markets
Naphtha
Ethanol
Questions
7
8. Industrial overview
BAHIA (BA) Camaçari, BA
RIO GRANDE DO
SUL (RS)
Triunfo, RS
8
9. Industrial Overview – State of Bahia (BA)
CONTINENTAL
MONSANTO
DUPONT FORD
CHLOR ALKALI KORDSA
EMCA ACRINOR
PE-2 PVC DOW TDI DETEN
PET
CPL QUATTOR
PE-3
ABB
OXITENO
P. FAFEN
BASF
BRASKEM - BASIC
PETROCHEMICALS
ELEKEIROZ
PE-1
COPENOR
BRASKEM - BASIC
PETROCHEMICALS
BRASKEM
9 9
10. Industrial Overview – State of Bahia (BA)
Aratu Terminal (BA):
9 petrochemical exports and feedstock imports ARATU TERMINAL
ULTRACARGO
LIQUIDS
Tanks 85
Storage capacity 192.600 m3
GASES
Tanks 8
Liquid and Gas Terminal Storage capacity 44.600 m3
10
11. Industrial overview
BAHIA (BA)
Camaçari, BA
RIO GRANDE
DO SUL (RS)
Triunfo, RS
11
12. Industrial Overview – State of Rio Grande
do Sul (RS)
INNOVA
OXITENO
PP-1 DSM
PP-2 / PE-5
PE-4
PE-6
BRASKEM - BASIC
PETROCHEMICALS
LANXESS
BRASKEM - BASIC
PETROCHEMICALS
BRASKEM
12 12
13. Industrial Overview – State of Rio Grande
do Sul (RS)
Santa Clara Terminal
Privately-owned terminal
extending for 4.6 miles,
with 3 petrochemical docks
and 2 ethanol tanks
13
14. Braskem +
Main Goal Æ To ensure profitability during the petrochemical cycles
It is a corporate program created to support the units in their efforts to improve quality,
productivity in their operations and sustainability of results through the application of a
set of integrated and consistent methodologies.
Equipment Reliability
5 Elements of Braskem +
Physical Organization
Production Reliability
Process Standardization
Focused Improvement
14
15. Braskem + Lean Six Sigma
Six Sigma Æ One of the tools used in Braskem +
The Six Sigma culture is present in the Basic Petrochemicals Unit spread in several areas,
mostly located in operational areas, where are the greatest opportunities for gains in
safety, environmental improvements and economic return.
Gains of Six Sigma (US$ MM)
30.0
21.1 23.6
9.6 *
5.2 21.1
2006 2007 2008 2009 2010
* Cumulative value until May/10
15
16. Process benchmarking
Periodicity: Each 2 years
1 1 Benchmarking
Participants
Research
Define Content
D
5 2
Evaluation of
Indicators (KPIs)
Results /
Presentation Design Data
Structure
Gaps Capture
Plan
Æ We use Benchmark
Solomon for Olefins and
4 3 Utilities
Verification,
Analysis,Generation Data Collection
of Results Transfer
& Transfe Æ We use Phillip
Towsend (PTAI) for
Aromatics
16
22. Benzene – Clients and markets
Styrenes LAB
Linear Alkyl Benzene
Unigel (BA) Deten (BA)
Innova (RS)
PS: disposables Household detergents
PS: appliances Industrial detergents
EPS: expanded polystyrene Soap powder
OLEFINS AROMATICS UTILITIES
BENZENE
Annual Production Capacity: 714,000 t
22
23. Toluene – Clients and markets
Solvents TDI AB9
Toluene di-isocyanate
Retail Market DOW (BA) Retail Market
Paints and varnish Flexible foam (upholstery) Agrochemicals
Thinners, turpentine Rigid foams
Adhesives (Bumpers and sandals)
OLEFINS AROMATICS UTILITIES
TOLUENE
Annual Production Capacity: 135,000 t
23
24. Gasoline + ETBE – Clients and markets
VEHICLE GASOLINE
Annual Production Capacity: 731,000 t
GASOLINE ADDITIVE
Export
ETBE
Annual Production Capacity: 372,000 t
24
25. Agenda
Business overview and main priorities
Industrial overview
Products and markets
Naphtha
Ethanol
Questions
25
26. Naphtha market forecast
Global naphtha balance points to oversupply in the following years
Naphtha crack spread will remain negative
Naphtha petrochemical demand in the U.S. will decrease as a consequence of low-
cost ethane
Ethane will increase its share of the U.S. feedstock slate
U.S. government regulations call for more ethanol in gasoline (bearish factor for
naphtha demand)
In Brazil, increasing ethanol demand and new Petrobras refineries will ensure naphtha
supply.
World Surplus (Deficit) Crack spread
20 10
15 8
4,1 6
10 3,4
2,0 4
5 1,0
0,2 0,0 2
US$/bbl
MM t
0 0
-5 -1,0 -1,0 -2
-1,7 -1,7 -1,9 -4
-10
-6
-15 -8
-20 -8,2 -10
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 2020
Source: Tecnon Parpinelli
26
27. Agenda
Business overview and main priorities
Industrial overview
Products and markets
Naphtha
Ethanol
Questions
27
28. A vision on sustainability
Social and environmental responsibility is a core value
among all leading global companies
Company’s
Core Business
Reduce Reduce water
emissions consumption
Social
Recycling
responsibility
Economic and Sustainable
Financial Raw
responsibility material
28
29. Sugar cane, Brazil and Braskem – a unique
combination
Sugar Cane Brazil
29
30. Sugar Cane – Competitive advantages with
other materials
Fossil-fuel energy used to MAKE the fuel (input) compared with
the energy IN the fuel (output)
,
9,3
1,4
, ,
2,0
1,0
,
Fossil-fuel Corn Sugar Beet Sugar Cane
Input Output
Sugar Cane has the highest energy productivity
compared to other Ethanol sources
New technologies expected to double productivity
30
31. Overview of the Ethanol Market
Fundamentals and balance
Growth in domestic demand
Flex-fuel vehicles may account for 50% of the Brazilian vehicle fleet by 2011
Expansion of ethanol use in the chemical industry
Sugarcane industry is facing a consolidation process, mainly through foreign capital
Production is exceptionally dependent on weather conditions
Ethanol availability is connected to sugar profitability
Environmental legislation worldwide is a driver for increasing global ethanol consumption.
Brazilian balance
80 20
70
60 15
MM de m³
MM de m³
50
40 10
30
20 5
10
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Production Total consumption Surplus (right axis)
Source: ANP and UNICA
31
32. Overview of the Ethanol Market
Fundamentals and balance
Growth in domestic demand
• Flex-fuel vehicles may account for 50% of the Brazilian vehicle fleet by 2011
• Expansion of ethanol use in the chemical industry
Sugarcane industry is facing a consolidation process, mainly through foreign capital
Production is exceptionally dependent on weather conditions
Ethanol availability is connected to sugar profitability
Environmental legislation worldwide is a driver for increasing global ethanol
consumption.
Market share of the five biggest groups of producers
2004/05
004/05 2009/10
009/10
12% 27%
% of the mills with external capital holdings
t
2007/08 2010/11e
010/11e
22%
7%
Source: Itaú BBA and UNICA 32
34. Braskem – increased demand for ethanol
Also the leader in renewable feedstocks
Brazilian Ethanol Consumers
6.000 24.2% (million liters per year)
5.000
18.5% 17.9%
4.000
3.000
3.0
2.000 %
3.7%
1.000 2.0% 1.9% 1.9% 1.8% 1.7% 1.1% 1.0% 0.9% 0.8%
0
Gold Petro
Euro Tux Florida Rodo
nova
petro
As a result of Braskem’s growth in the alcohol-
chemical sector, the company is increasingly present in
the market as an ethanol consumer.
Source: Sindicom and ANP 34
35. Green ethylene
An alternative to ethylene derivatives
SUSTAINABLE
Ethanol
Sugar Cane
Green Ethylene Derivatives
Ethylene oxide - MEG Styrene - PS Green Polyethylene
35
36. Agenda
Business overview and main priorities
Industrial overview
Products and markets
Naphtha
Ethanol
Questions
36
