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Conference call presentation 3 q07 results

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Conference call presentation 3 q07 results

  1. 1. Earnings Conference Call – 3Q07José Carlos Grubisich Carlos Fadigas 1
  2. 2. Forward-looking StatementsThis presentation contains forward-looking statements. Such statements are not statementsof historical facts, and reflect the beliefs and expectations of Braskem’s management. Thewords “anticipates”, “wishes”, “expects”, “estimates”, “intends”, “forecasts”, “plans”,“predicts”, “projects”, “targets” and similar words are intended to identify thesestatements. Although Braskem believes that expectations and assumptions reflected in theforward-looking statements are reasonable based on information currently available toBraskem’s management, Braskem cannot guarantee future results or events.Forward-looking statements included in this presentation speak only as of the date they aremade (September 30, 2007), and the Company does not undertake any obligation to updatethem in light of new information or future developments.Braskem shall not be responsible for any transaction or investment decisions that are takenbased on information included in this presentation. 2
  3. 3. Braskem: 3Q07 HighlightsGood Operating Performance coupled with advances in the Consolidation of theSouthern Complex • Operating Performance – Historical records of resins domestic sales volume and production volume on a quarterly basis – Resins market share increased from 51% in 2Q07 to 54% in the 3Q07; – 18% reduction in General and Administrative Expenses; – EBITDA of R$ 755 million, with EBITDA margin of 16.3%; – Net Income reaches R$ 132 million; • Consolidation of the Southern Petrochemical Complex – Successful offer for Copesul shares • 98.6% acceptance from shareholders registered to participate at the Offer • Delisting was authorized by CVM; • Redemption of the remaining shares will be decided in an Extraordinary Shareholders Meeting of Copesul; – Tag Along Offer to common shareholders of the Ipiranga Group • The Offer was held in October and 82% of the shares of RPI and 77% of the shares of DPPI were acquired; • Offer for CBPI shareholders to be held in November; • Green Polyethylene – Decision to invest in a 200 thousand ton Unit of ethylene from ethanol from sugar cane to start-up in 2009. 3
  4. 4. Braskem Record resins production and high capacity utilization rates Capacity Utilization Rate % Ethylene pp PE PVC 104% 97% 96% 95% 93% 94% 90% 92% 92% 89% 87% 88% 3Q06 2Q07 3Q07 3Q06 2Q07 3Q07 3Q06 2Q07 3Q07 3Q06 2Q07 3Q07 Resins Production Kton 2,121 2,049 714 Historical record of 710 +3.5% quarterly resins production +0.6% in the 3Q07 => 714,000 tons 9M06 9M07 3Q06 3Q07Source: Braskem 4
  5. 5. Braskem Strengthening of our market leadership Historical record of quarterly resins sales in Brazil => 551,000 tons Domestic Sales 3Q07 x 2Q07 % Resins Market Share – 3Q07 +12% Others +8% +6% 32% 2% 54% +1% 14% Imports Braskem Domestic PE PP PVC Resins Market*Domestic Sales + ImportsSource: Braskem / Abiquim 5
  6. 6. Braskem: EBITDA Evolution 3Q07 x 3Q06 Commercial strategy minimizes impact of both naphtha price increases and exchange rate R$ million Foreign Exchange 344 impact on costs Foreign Exchange (566) impact on revenue 387 61 795 (222) (182) 755 (66) (18) Raw Fixed 3Q06 Prices Volume Exchange Costs/ Others 3Q07 Rates Materials SG&ASource: Braskem 6
  7. 7. Braskem: EBITDA Evolution 3Q07 x 3Q06 Commercial strategy minimizes impact of both naphtha price increases and exchange rate R$ million Foreign Exchange 74 impact on costs Foreign Exchange (159) 27 impact on 810 * 167 revenue (138) 755 (85) (24) (2) Fixed Costs / Raw Exchange 2Q07* Prices Rates Volume Others 3Q07 SG&A Materials* Excludes R$ 111 milllion non-recurring revenue incurred in 2Q07Source: Braskem 7
  8. 8. Debt Profile Amortization schedule compatible with cash generation and acquisition in process TJLP In million of R$ (09/30/2007) CDI Fixed 7% 18% Net Debt / EBITDA LTM Gross Debt: 6,819 11% Net Debt: 5,004 1.49 Trade Finance 1.44 21% Average Maturity: 13 years -3% US$ 1,815 Cash 43% US$ 64% Jun Sep 07 07 750 750 14% 14% 14% 12% 10% 11% 10% 10% 1,065 963* 945 917 802 4% 695 669 741 782 305 09/30/07 2007 2008 2009 2010 2011 / 2013 / 2015 / 2017 / 2019 / Invested in R$ 2012 2014 2016 2018 Perpetual invested in US$ * Includes R$ 770 million from the bridge loan for the acquision of Grupo Ipiranga petrochemical assetsSource: Braskem 8
  9. 9. Braskem: Economic and Financial Performance Operating performance and improved financial results leverage Net Income R$ million 3Q07 3Q06 Chg. % 9M07 9M06 Chg. % Main Economic Indicators (A) (B) (A)/(B) (C) (D) (C)/(D) Net Revenue k t Revenue Net 4,623 4,724 -2% 14,016 12,746 10% EBITDA 755 795 -5% 2,529 2,085 21% EBITDA Margin 16.3% 16.8% +0.5 pp 18.0% 16.4% +1.6 pp Net Financial Result (68) (396) -83% (231) (753) -69% Net Income 132 (54) - 541 38 1,331%Source: Braskem 9
  10. 10. Acquisition of Ipiranga Group Petrochemical Assets Potential Synergies SYNERGIES OF US$ 1.1 BILLION IN NET PRESENT VALUE US$ million 73 58 1,147 112 228 267 409 Total Financing Industrial Commercial Supply Chain Logistics Others SynergiesSource: Braskem 10
  11. 11. Earnings Conference Call – 3Q07José Carlos Grubisich Carlos Fadigas Visit our website: www.braskem.com.br/ir 11

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