This document summarizes Braskem's 2Q11 earnings call. Key highlights include:
- Net revenue grew 18% in USD and 13% in BRL compared to 1Q11. Revenue was up 39% vs 2Q10.
- EBITDA reached a record R$1.2 billion in 2Q11, up 25% vs 1Q11 due to higher contribution margins.
- Braskem acquired Dow's polypropylene business for US$323 million, expanding its global PP capacity.
- Synergies from the Quattor acquisition totaled R$163 million in 1H11.
- Outlook points to recovery in resin-naphtha spreads in 2H
Market Research Report :Polymer Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Indian Petrochemical industry is one of the fastest growing sectors in the world. Low operating capacities in Indian petrochemical concerns bring with it the opportunity for future facility utilization. Polymer market is dependent on growth in related sectors. Low per capita consumption of polymer offers opportunities for domestic manufacturers to meet the rising domestic demand for polymers.
The report begins with an overview of the petrochemical industry in India providing the market size and growth as well as information regarding the increase in refining capacity in India. This is followed by a primary segmentation of the industry. An overview of polymer industry provides an introduction to the sector and covers the market size and growth along with share of polymer in India. This is followed by an analysis of the value chain as well as a description of the key processes involved in the methodology for developing polymeric products. The section also renders information about the distribution model prevalent in the sector along with an EXIM trend over a period of five years. Porter’s Five Forces analysis concludes this section.
The next section provides highlights regarding the major polymers in the Indian Market. The sector can be categorized into four major sub-divisions of polymers. It includes information regarding individual market sizes and growth. Also provided are the primary properties and uses of these polymers.
An analysis of the drivers explains the factors for growth of the market and includes demand from packaging industry, growth in associated manufacturing sectors, increase in usage of polymer products in agriculture, depreciation of rupee and low per capita consumption of polymer. Due to marketing policies varying across sectors and unique attractive packaging surfacing as a potent determinant for success of products, packaging sector is poised for growth. Growth in packaging sector will translate in to strong demand for the polymer industry. Growth is directly linked with its associated sectors that are prime polymer users. Growth in the Indian economy ushers in the development of sectors such as infrastructure, automobiles and consumer goods. These require polymer in their product development and thus pose as significant drivers for the sector. Agriculture constitutes another sector that has emerged as a potential end user for polymers. Be it infrastructural projects such as irrigation or even construction activities, polymers find its applications in such areas. Depreciation of rupee has added to major woes in the cost of imports for the sector. India has witnessed increased domestic demand and with imports slowing down due to increased cost, immense opportunities exists for domestic manufacturers to cater to the rising demand. Finally, India faces low per capita consumption of polymers which poses latent opportunities for the sector. Howe
Business Marketing Strategies to Attract New Customers in Houston and The Woo...ITVibes, Inc.
There’s no doubt the economy is changing, re-shaping and re-inventing itself. The Woodlands, Conroe and the surrounding areas of Montgomery county, Texas are experiencing a never seen before growth in the economy. This has created a major potential for many local businesses to create a bigger exposure for expansion to capture the opportunities using Website, Mobile Site & Social Media.
ARE YOU IN THE KNOW? Will you be well-positioned to take advantage of these changes? Marketing your products or services is the most critical part of Small Business Success and a business will fail if you can’t close a sale.
About 90% of the people in Conroe and The Woodlands use the Internet. According to the analysts, 86% of consumers use Local Search and Social Media before making their buying decision. Are they finding you or your competition first?
Learn how to:
Create Brand Exposure
Build Customer Loyalty
Increase Website Traffic and Conversions
Attract New Generation Potential Clients
Generate More Leads to Effect the Bottom Line
Houston Website Marketing & Lead GenerationITVibes, Inc.
There’s no doubt the economy is changing, re-shaping and re-inventing itself with Houston Web Design branding & Social Media Marketing picking up for local businesses.
Will you be well-positioned to take advantage of these changes? Marketing your products or services is the most critical part of Small Business Success and a business will fail if you can’t close a sale.
Looking for more information on Marketing? Check out this presentation from our seminar on Low Cost Marketing: Online & Offline Strategies for Small Businesses’. This event is conducted by SCORE Houston and Houston Community College.
Presentation Details:
“Selling Like a Pro” will teach a non-manipulative, needs-satisfaction sales strategy aimed at producing a “win” for both the seller and the buyer, making them partners in the sales transaction. You will learn how to focus on customers and ask the right questions to close a sale.
“Your Website as a First Marketing Tool” presentation covers on how to make your business website an online magnet to generate more leads and to attract potential customers to increase sales and bottom line. Learn how to integrate Mobile design, keywords, content strategy, search engine optimization, blogs and social media marketing to make the website your first online marketing and branding tool.
Market Research Report :Polymer Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Indian Petrochemical industry is one of the fastest growing sectors in the world. Low operating capacities in Indian petrochemical concerns bring with it the opportunity for future facility utilization. Polymer market is dependent on growth in related sectors. Low per capita consumption of polymer offers opportunities for domestic manufacturers to meet the rising domestic demand for polymers.
The report begins with an overview of the petrochemical industry in India providing the market size and growth as well as information regarding the increase in refining capacity in India. This is followed by a primary segmentation of the industry. An overview of polymer industry provides an introduction to the sector and covers the market size and growth along with share of polymer in India. This is followed by an analysis of the value chain as well as a description of the key processes involved in the methodology for developing polymeric products. The section also renders information about the distribution model prevalent in the sector along with an EXIM trend over a period of five years. Porter’s Five Forces analysis concludes this section.
The next section provides highlights regarding the major polymers in the Indian Market. The sector can be categorized into four major sub-divisions of polymers. It includes information regarding individual market sizes and growth. Also provided are the primary properties and uses of these polymers.
An analysis of the drivers explains the factors for growth of the market and includes demand from packaging industry, growth in associated manufacturing sectors, increase in usage of polymer products in agriculture, depreciation of rupee and low per capita consumption of polymer. Due to marketing policies varying across sectors and unique attractive packaging surfacing as a potent determinant for success of products, packaging sector is poised for growth. Growth in packaging sector will translate in to strong demand for the polymer industry. Growth is directly linked with its associated sectors that are prime polymer users. Growth in the Indian economy ushers in the development of sectors such as infrastructure, automobiles and consumer goods. These require polymer in their product development and thus pose as significant drivers for the sector. Agriculture constitutes another sector that has emerged as a potential end user for polymers. Be it infrastructural projects such as irrigation or even construction activities, polymers find its applications in such areas. Depreciation of rupee has added to major woes in the cost of imports for the sector. India has witnessed increased domestic demand and with imports slowing down due to increased cost, immense opportunities exists for domestic manufacturers to cater to the rising demand. Finally, India faces low per capita consumption of polymers which poses latent opportunities for the sector. Howe
Business Marketing Strategies to Attract New Customers in Houston and The Woo...ITVibes, Inc.
There’s no doubt the economy is changing, re-shaping and re-inventing itself. The Woodlands, Conroe and the surrounding areas of Montgomery county, Texas are experiencing a never seen before growth in the economy. This has created a major potential for many local businesses to create a bigger exposure for expansion to capture the opportunities using Website, Mobile Site & Social Media.
ARE YOU IN THE KNOW? Will you be well-positioned to take advantage of these changes? Marketing your products or services is the most critical part of Small Business Success and a business will fail if you can’t close a sale.
About 90% of the people in Conroe and The Woodlands use the Internet. According to the analysts, 86% of consumers use Local Search and Social Media before making their buying decision. Are they finding you or your competition first?
Learn how to:
Create Brand Exposure
Build Customer Loyalty
Increase Website Traffic and Conversions
Attract New Generation Potential Clients
Generate More Leads to Effect the Bottom Line
Houston Website Marketing & Lead GenerationITVibes, Inc.
There’s no doubt the economy is changing, re-shaping and re-inventing itself with Houston Web Design branding & Social Media Marketing picking up for local businesses.
Will you be well-positioned to take advantage of these changes? Marketing your products or services is the most critical part of Small Business Success and a business will fail if you can’t close a sale.
Looking for more information on Marketing? Check out this presentation from our seminar on Low Cost Marketing: Online & Offline Strategies for Small Businesses’. This event is conducted by SCORE Houston and Houston Community College.
Presentation Details:
“Selling Like a Pro” will teach a non-manipulative, needs-satisfaction sales strategy aimed at producing a “win” for both the seller and the buyer, making them partners in the sales transaction. You will learn how to focus on customers and ask the right questions to close a sale.
“Your Website as a First Marketing Tool” presentation covers on how to make your business website an online magnet to generate more leads and to attract potential customers to increase sales and bottom line. Learn how to integrate Mobile design, keywords, content strategy, search engine optimization, blogs and social media marketing to make the website your first online marketing and branding tool.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
1. Conference Call
2Q11
Investor Relations
São Paulo, August 15, 2011
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
(June 30, 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. Highlights
Net revenue in 2Q11 was US$5.2 billion, or R$8.3 billion, growing 18% and 13%, respectively, from
1Q11. In relation to 2Q10, growth in USD was 39%.
In 1H11, net revenue was US$ 9.7 billion, up 31% from 1H10.
Record EBITDA of R$ 1.2 billion in 2Q11, up 25% when compared to prior quarter, supported by the
higher contribution margin in the period. Record LTM EBITDA of US$2.5 billion or R$4.2 billion.
Braskem remains committed to maintaining its financial solidity:
Net Debt/EBITDA ratio maintained its downward trend to reach 2.30 times
New markets tapped: US$ 500 million, 30-year bond issue due in July 2041, with coupon of 7.125%
p.a. and yield of 7.25% p.a.
Synergies from Quattor acquisition totaled R$163 million in 1H11.
Acquisition of Dow’s Polypropylene business for US$323 million
Leader in the U.S. PP market.
Global expansion of industrial operations
Total capacity of 1,050 ktons/year: 2 plants in U.S. and 2 in Europe
Net Debt/EBITDA ratio of 2.40 x (pro forma)
3
4. Performance by Segment – 2Q11 vs. 1Q11
POLYOLEFINS
• Total sales remain stable
• Revenue: growth of 8% in USD and 4% in BRL
VINYLS
• PVC and soda sales grow 12% and 7%, respectively
• Recovery in production and increase of 12% in PVC apparent consumption
• Revenue: growth of 19% in USD and 14% in BRL
BASIC PETROCHEMICALS
• Total ethylene and propylene sales increase 8%
• Higher feedstock costs and higher cracker co-product prices
• Revenue: growth of 28% in USD and 22% in BRL
INTERNATIONAL BUSINESSES
• Higher PP prices, driven by the increase in propylene prices
• Revenue: growth of 18%, to US$460 million
4
5. Domestic Market Performance
Resins Domestic Market grew 2% in 2Q11, compared to Origin of Imports in 2Q11
2Q10
PE + PP PVC
Europe Others
Braskem’s Sales Profile – 2Q11
2Q11 3% 4%
Others
OTHERS 16% Asia
16%
RETAIL Europe North America
10%
12% North America 27%
AGRIBUSINESS 5% FOOD PACKAGING
31% 35%
5%
AUTOMOTIVE Asia Colombia Argentina
6%
17% 38% 12%
Argentina
16%
14%
CONSTRUCTION 10% Colombia
CONSUMER 4%
10% 9% GOODS
INDUSTRIAL HYGIENE AND
CLEANING Polyolefins (PE and PP) and PVC
imports accounted for 29% and 37% of
the domestic market, respectively
Stronger performance on Consumer Goods and
Construction segments Americas accounted for 61% of imports
Source: Abiquim, Braskem 5
6. EBITDA Performance: 2Q11 vs. 1Q11
Combination of sales volume growth and higher resin R$ million
and basic petrochemical prices partially offset the
increase in raw material prices and BRL appreciation. FX impact
on costs 292
FX impact
on
(376)
revenue
263 9
1,152
( 84 )
(5 )
50
919
EBITDA Volume Contribution Others FX Fixed Costs EBITDA
1Q11 Margin SG&A 2Q11
Source: Braskem 6
7. EBITDA Performance: 2Q11 vs. 2Q10
Higher resin and basic petrochemical prices offset the R$ million
lower sales volume, the BRL appreciation and higher raw
material prices. FX impact
on costs 800
FX impact
on
(1,031)
revenue
381 3
( 48 )
10 1,152
1,036 ( 231)
EBITDA Contribution Others Volume FX Fixed Costs EBITDA
2Q10 Margin SG&A 2Q11
Source: Braskem 7
8. Reduction in leverage reaffirms Braskem’s strategy
Dívida LíquidaEBITDA (R$)
Net Debt/ / EBITDA (US$)
Jun 11 2.30x
AmortizationSchedule(1) -3%
(R$ million)
Mar 11 2.37x
06/30/2011
546*
Dívida Líquida / EBITDA (US$)
Net Debt/ EBITDA (US$)
662
17% 15%
14% Jun 11 2.47x
3,192 13%
2,646 11% 12% -2%
10% 2,114 Mar 11 2.52x
8% 1,895
1,363 1,715 1,499
1,984 1,185 1,582
999
Gross debt pegged to USD: 60%
Net debt pegged to USD: 69%
06/30/11 2011 2012 2013 2014 2015/ 2017/ 2019/ 2021
2020
Corporate Credit Rating
Cash 2016 2018 onwards
Agency Rating Outlook Date
(1) Does notinclude transaction costs
Invested in R$
Invested in US$ * Stand by of US$ 350 million Global Scale
Moody's Baa3 Stable 3/31/2011
S&P BBB- Stable 3/30/2011
Fitch BB+ Positive 1/11/2011
US$500 million bond issue due in July 2041 with yield of
National Scale
7.25% p.a. and coupon of 7.125% p.a. marked Braskem’s first
30-year issue, allowing for the access to a new profile of Moody's Aa2.br Stable 3/31/2011
S&P brAAA Stable 3/30/2011
investors.
Fitch AA (bra) Positive 1/11/2011
8
9. Synergies from Quattor acquisition total
R$ 163 million in 1H11
1H11 EBITDA*: R$ 163 million 2012 EBITDA*: R$ 495 million
R$ million
R$ million
59
32 87
45
495
163
350
86
Industrial Logistics Supply EBITDA Synergies Industrial Logistics Supply EBITDA Synergies
Identification of new opportunities, efficiency and rapid implementation of initiatives to capture synergies
Integrated planning for industrial units
Centralization of strategy for asset maintenance planning
Optimization of freight activities and distribution and storage gains
Integrated purchasing of raw materials
Tax gains and lower debt carrying cost
Source: Braskem * Annual and recurring 9
10. Acquisition of Dow’s Polypropylene Business
Transaction:
On July 27, Braskem acquired Dow’s Polypropylene (PP) business,
expanding its PP capacity by 1,050 ktons/years
Braskem will pay US$323 million for the business 16% Capacity
Increase
1.050 7,480
Benefits and strategic drivers: 6,430
PP acquisition
Leader in U.S. PP market, one of the world’s largest PP consumers2.885 2.885 1,050
PP
Geographic diversification and global expansion of industrial 2,885 2,885 PE
operations
Kty
3.035 3.035 PVC
Portfolio of complementary products 510 3,035 510 3,035
– Focus on higher value-added products (co-polymers)
Brk 510 + D
Brk 510
Access to U.S. propylene distribution chain Braskem Braskem
Value creation through potential synergies with the current business after
acquisition
– NPV near US$140 million
Greater presence in the European market
– Proximity to new clients
– Support to global leadership in biopolymers
PP is one of the world’s faster growing thermoplastic resins
Fragmented markets in U.S. and Europe - potential for future
consolidation
10
11. Outlook and Priorities
Petrochemical Industry:
Global industry scenario in 2H11 points to recovery in resin-naphtha spreads over 2Q11
Scheduled stoppages in Asia and recovery in local demand;
Continued instability in Middle East operations;
Lower capacity utilization rates (U.S. and Europe).
Risk Factors
Slowdown in demand from emerging countries impacted by the crisis in developed economies;
Volatility in raw material prices, driven by stronger speculation on oil prices.
Braskem’s priorities:
Support the development of an industrial scenario that strengthens the Brazilian petrochemical and plastics
chain
Recover market share, combating “subsidized” imports
Ensure capture of identified synergies
Integrate new PP plants located in U.S. and Germany
Maintain liquidity and financial health
Expansion Project
– Expansion of the new PVC Alagoas plant
– Final Investment Decision for the Ethylene XXI Project in Mexico, based on competitive feedstock
– Define Comperj configuration with Petrobras
– Study projects aimed at the access to competitive feedstock in U.S. (shale gas)
– Expand use of renewable feedstock
11
12. Conference Call
2Q11
Investor Relations
São Paulo, August 15, 2011