2. Forward-looking Statements
This presentation contains forward-looking statements. These statements do not
represent historical fact, but rather reflect the beliefs and expectations of
Braskem’s management. The words “anticipate”, “wish”, “expect”, “estimate”,
“intend”, “forecast”, “plan”, “predict”, “project”, “target” and similar words
are intended to identify these statements. Although Braskem believes that the
expectations and assumptions reflected in these forward-looking statements are
reasonable and based on information currently available to management,
Braskem cannot guarantee future results or events.
The forward-looking statements in this presentation are valid only on the date
they are made (March 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. Global Scenario
. World governments’ recovery plans start to work out
. Retraction process of some economies begin to ease
. Consumer Index in China out of the contraction level for the first time in 9
months
. Commodities production chain at low levels of inventories
. US producers (gas base) more competitive and local market remains weak
. Supply problems at the Asian market
. Prices in Asia expected to drop in 2H09 due to Middle East and India supply
. Global ethylene capacity:
. 6 MMt starting operations – 80% in the Middle East
. 6 MMt stopped or iddle – USA and Europe (excludes Asia)
. 4 MMt delayed – Middle East and Asia
. Year of economic contraction
3
4. Regional Scenario
. Consumption of non-durable goods in Brazil shows resilience when compared to
2008
. Brazilian industries with best performances in the period: Packages, Home
Appliances, Consumption Goods, Personal Hygiene and Cleaning
. Industries still presenting poor performance: Agribusiness, Automotive,
Construction
. Imported resins volume still at high levels – ports with fiscal benefits, weak
demand in the USA and Latin America (Argentina and Colombia)
. Argentinean market very depressed due to credit restriction – stronger exports to
Brazil
. Colombian market – shifting exports from USA to Brazil
4
5. 1Q09 Achievements
. New Naphtha Agreement:
- agreement under confidentiality clause regarding disclosure of price formula
- clause assuring adjustment to ARA quality standard
- price formula to weaken volatility and improve predictability
- foreseen discount and premium over ARA reference
- ~60% of volume from Braskem
- 5 years, renewable for other 5 years
. Maintenance of financial discipline: cash of R$ 3 billion
. Resumption of full capacity in March (95% ethylene)
. Doubled exports when compared to 4Q08
. Inventories average cost leveled with production costs in March
. Productivity program leads to a reduction of R$ 78 million in SG&A in the quarter
. Reduced disbursement with investments 49% lower vis a vis 1Q08
5
6. 1Q09 Highlights
Operating Performance:
. Net revenue of R$ 3.2 billion, 24% down on 4Q08: volume and prices
. Reduction in PVC demand (33% versus 1Q08)
. R$458 million EBITDA, with non-recurring effects, sustains covenants
Strategic Actions:
. Merger of Petroquímica Triunfo
. Launch of the cornerstone for the Green PE project in the Triunfo
Complex
6
7. Plants operating at full capacity
in March
Utilization Rate %
ETHYLENE PE PP PVC
97% 104%
95% 95%
89%
73% 73% 74% 76%
69% 70%
64%
1Q08 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 4Q08 1Q09
Resins Production Kt Monthly Utilization Rate - Ethylene Kt
704
611 95%
599
78%
47%
+2%
1Q08 4Q08 1Q09 Jan Feb Mar
Source: Braskem
7
8. Brazilian Market starts recovery
in March
Domestic Sales 1Q08 x 1Q09 % Resins Market Share 1Q09
- Resins volume in March is flat when compared to - Exports remain strong in January and
March 2008 February
Others
- 12% -9% -33% -16% -13%
29%
46%
PP 25%
PE Brazilian Imports
Braskem Market*
Resins
PVC
* Braskem estimates: Domestic Sales + Imports
Source: Braskem
8
9. EBITDA
Reduced resins prices overcome the positive impact from
lower raw material prices and FX increase on revenues
R$ million
342 FX impact
1,339
on revenue
97 4
95 FX impact
2,447 on costs
(997)
601
458
(3,128)
Raw Taxes
1Q08 Material
Volume (PIS / Cofins) Others FX Price 1Q09
Sourcee: Braskem 9
10. EBITDA
Reduced resins prices overcome the positive impact
from lower raw material prices
R$ milhões FX impact
60 on revenue
FX impact
(44)
on costs
26 23
86
97
1,175
565
458
(1,514)
Raw Taxes
4Q08 Materials
Volume FX SG&A Price 1Q09
(PIS / Cofins)
Soure: Braskem 10
11. Short-term debt well managed and long-term debt well
distributed with an average term of 11 years
R$ Million (03/31/09)
Gross Debt: 12,151 Net Debt / Ebitda (x) R$ Net Debt / Ebitda (x) US$
Net Debt: 9,181
Average Term: 10.5 years 4.00
3.73 3.31
2.89
72% of the debt are pegged to the USD
+7,2% +15%
Cash and Equivalents
2,970 Dec08 Mar09 Dec08 Mar08
1,814
14%
13% 13%
PFICO 12% 12%
10% 11%
726 9%
1,570 1,457 1,448 6% 1,628
1,156 1,346
1,225 1,158
943
710
03/31/09 2009 2010 2011 2012 2013 2014 / 2016 / 2018 / 2020
2015 2017 2019 onwards
In R$
Value related to the loan granted by a Petrobras subsidiary for the delisting of Copesul,
In US$
due in October 2009
Source: Braskem
11
12. Short Term Focus
Clients’ proximity
Priority over financial health and liquidity
Productivity Program: cost reduction
Profitability
Defense against imported products
Identification of operating synergies with Petrobras
Construction of the Green PE plant
Analysis of opportunities arising from crisis: selective acquisitions
Venezuela
Greater operational and financial strength
12
