apresentação braskem day ny
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Braskem DayCarlos Fadigas
CEO
April 19, 2011
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 (December 31, 2010) 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
Braskem: Leader in PE, PP and PVC production in
the Americas
Industrial Assets
Dominant market share in South America, with 69% of
the Brazilian market
Strong growth track record with attractive project
pipeline in Brazil, Latin America and Sustainable
chemicals (focus on renewable raw materials)
Listed in 3 stock exchanges: BM&FBovespa, NYSE and
Latibex - 100% tag along
Investment grade rating by S&P and Moody’s
Market Cap (03/25/2011) – US$ 10 billion
EV – Net debt Dec 2010 – US$ 16 billion
1 gas cracker
1 PP
1 PE
1 naphtha
cracker
2 PP
3 PE
3 PP
1 naphtha cracker
1 ethanol cracker
5 PE
2 PP
1 PVC
1 Chlorine-soda
Diversified portfolio of petrochemical products,
with focus on PE, PP and PVC
Annual capacity of 6,460 kton
31 facilities in Brazil and USA
Naphtha and gas based crackers (70/30)
Petrobras as the main supplier in Brazil (~70%
of naphtha needs and 100% of gas needs)
1 naphtha cracker
4 PE
1 PP
1 PVC
1 Chlorine-soda
2009 2010
∆R$ billion
Braskem
Stand aloneConsolidated
Net Revenue 15.2 27.8 + 83%
EBITDA 2.5 4.1 + 64%
Net Debt/EBITDA 2.67x 2.43x - 9%
Financial Highlights
Potential Short term
Upside
Synergies:
‐ Additional EBITDA – R$ 495 million on a
recurring basis as of 2012, out of which R$
377 million in 2011
Expectation of cycle recovery as of 2012
3
Agenda
Recent financial performance
Final considerations
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
4
Agenda
Recent financial performance
Final considerations
5
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Source: Analysts reports, CMAI capacity list
South America:
Second player has
around 10% of Braskem’s
capacity
South America
# 12 players
* PE, PP and PVC
North America
# 32 players
M.East
# 38 players
W.Europe
# 29 players
N.Asia
~# 150 players
S.Asia
~# 40 playersBraskem: 5,510
Ecopetrol: 548
Mexichem: 416
PBB Polisur: 650
Pequiven: 185
Petro Dow: 42
Petroken: 180
PETROQUIM: 120
Petroquímica Cuyo: 130
Polinter: 495
Propilven: 115
Solvay Indupa: 541
Capacity (000 Metric Tons)
Braskem: strong potential for outperform
6
Braskem responsible for over 60% of the capacity share of thermoplastic
resins* in South America – 69% market share in Brazil.
Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE.
Brazil: strong potential growth
Per-capita Consumption of PE, PP and PVC (kg/person)
2010 Market Share Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth%
Brazil:
69%
26%
5%
Braskem
Others
Imports
18 17 19 18 20 21 22 23 25
2002 2003 2004 2005 2006 2007 2008 2009 2010
6558
46
31
USA Europe Japan China
Estimate: Resins Demand ~ 2.0x GDP
-0.6%
7.5%
4.5%1.0%
15.0%
10.0%
2009 2010 2011e 2012e 2013e 2014e 2015e
Brazilian GDP (Growth %) Demand Growth (2x GDP) %
2x GDP
7
Customers’ relationship (development
of solutions)
New applications for plastic /
applications with environmental
benefits
Technological innovation and
sustainability solutions
Fiscal Isonomy
Actions against tax distortions
Program related to transformed
goods quality / standardization
Chain financing (R$3 billion)
Creation of FIDCs oriented to
customers
Chemical Industry National Agenda
(sets forth the allocation of resources
for investments in capital goods in
the plastic transformed goods
industry)
Plastic image
Environmental impact studies –
plastic x Ersatz (life cycle)
“I’m green” seal
Brasilplast: fair as communication
channel for plastic image promotion
campaigns
Formula 1 campaign: green plastic,
recycling, wood plastic
Mechanical recycling
Pro-plastic (with BNDES)
Industry technological agenda (with
MDIC and ABDI)
Qualified labor for third generation
Export Plastic Program
Plastic Chain Competitiveness
Forum
Intangible value: the reasons behind strong
relationship with customers in Brazil
8
Market
Development
Domestic
Market
Defense
Fiscal
Support
Export
Incentives
Chain
Capacity
Sustainability
& Marketing
Ownership Structure Leveraging relationship with Petrobras
Source: Braskem
50.1% / 38.2%
MinorityShareholders
47.1% / 35.8%
Voting Shares / Total Shares
0.0% / 5.9% 2.8% / 20.1%
- World leader in
E&P in deep
waters;
- Present in the
industry as
investor, supplier
and customer;
- Investment Grade
by all 3 Rating
Agencies.
- Conglomerate with
investments in
different sectors;
- More than 30-years
in the petrochemical
industry.
• Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned
company
• Board of Directors with 11 members: 6 nominated by Odebrecht, 4 by Petrobras and 1 independent
• Sole vehicle for petrochemical investments of both shareholders, Braskem has the right:
- to lead all petrochemical investments identified by Petrobras and Odebrecht.
Govern
ance
9
Raw material matrixDiversification to compete globally
Raw Material Profile* (2010)
More balanced and diversified supply of raw materials
Competitive gas price vs. international reference prices
(1) Ethane, Propane and LHR (FCC off gas)(2) Naphtha and condensate *Based on resin-production capacity. Sunoco buys propylene directly
Current Braskem Post- Mexico Project
Propylene
USG reference with competitive prices in 70% of US
supply
Gas
100% Petrobras supply with competitive prices versus
international prices
Ethanol
Naphtha / Condensate
66% of naphtha supplied by Petrobras with competitive
price formula – based on international price
34% direct imports from various international suppliers
Implementation of
Project Pipeline
Ethanol
13%
17%
67%
3%
24%
15%58%
3%
10
Quattor Braskem America
Braskem Braskem after
acquisitions
46%
14%
92%69%
17%
56%
8%
18%37%30%
13%
Liquid (2) Refinery propylene Gas (1)
Structured resource base to support customer needs:
Over R$ 330 million in R&D assets
More than 190 researchers
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
Innovation & Technology
PE
BIOPOLYMERS
Innovation and Technology Center
Strengthening the value chain competitiveness
Innovation pipeline
NPV: ~US$ 510 millionPP
PVC
PPCoffee Bags
PVCDoors
11
PERotomolded Manhole
Innovation & Technology
PP
PP - NEW PP WASHING MACHINES
Partners: Electrolux and ColormaqInnovation: Steel and PET replacement in washing machine body part (lower cost and weight)Target Sales: 6 kton/year
PP - LOW VOC AUTOMOTIVE GRADE
Partner: Lyondell-Basell BrazilInnovation: High performance grade for automotive compounds.Target Sales: 4 kton/year
PE - LARGE ROTOMOLDED WATER TANKS
Partner: FortlevInnovation: Fiberglass tank replacementTarget Sales: 32 kton/year
PVC - PVC WINDOWS
Partners: Claris, Primeira Linha, Veka and WeikuInnovation: Increase PVC window profile application in the market Target Sales: 2 kton/year
PE - GRAIN BAGS
Partner: PacifilInnovation: Lower cost and faster installation with flexible silos for grain storageTarget Sales: 5 kton/year
PVC - PVC ROOF TILES (To be launched)
Partners: Not disclosed now due to secrecy agreementInnovation: Asbestos and Clay roof tiles replacement Target Sales: 120 kton/year
12
13
2011 EBITDA*: R$377 million
* Annual and Recurring
2012 EBITDA*: R$495 million
Source: Braskem
Identification of new opportunities, efficient and rapid implementation of initiatives to capture synergies
Integrated planning for industrial units
Centralized maintenance strategy
Optimization of freight and gains in distribution and storage
Joint purchase of materials for industrial operations
Synergies from Quattor acquisition totaling
R$377 million in EBITDA for 2011
Additional R$490 million in NPV
of synergies that do not affect
EBITDA – financial, fiscal, etc
350
495
87
59
Industrial Logística Suprimentos EBITDA Sinergias
R$ milhões
Industrial Logistics Supply EBITDA Synergies
234
377
82
61
Industrial Logística Suprimentos EBITDA Sinergias
R$ milhões
Industrial Logistics Supply EBITDA Synergies
R$ million R$ million
Ethylene: Operating rate 2010
Source: CMAI, Parpinelli Tecnon
Industry in 2010
Operating rates decreased in 4Q10 driven by the
rigorous winter in the Northern hemisphere and
operational problems in Europe and Middle East
Competitive cost base allowed the US to
operate at higher rates than other regions
throughout 2010
Global operating rate at 83.5% in 2010, 3.1 p.p.
over previous forecast
Demand grew by 6.7%, or 7.4 million ton.
More than 50% higher than previous forecast
Global Scenario
New capacity additions can lead to the closing
down of non competitive assets, especially in
Europe and Asia (Japan)
No significant expected change in ME
operating rate – structural problems in Iranian
plants
High volatility in oil prices boosts naphtha
prices. Prices of resins and basic petrochemicals
follow this trend
Expectation of improvement in the industry
profitability as of 2H11
Ethylene: Supply and Demand Balance
MM ton
MM ton
81
89 88
74
838484
94
82
78
86
91
50
60
70
80
90
0
5
10
15
20
Europe N. America Asia M. East World Braskem
Capacity 4Q Operating rate 4Q10 (%) Operating rate 3Q10 (%)
83.5 83.986.3
88.790.7 91.3
0
50
100
150
200
2010 2011e 2012e 2013e 2014e 2015e
Capacity Demand Operating Rate (%)
Outlook on the global petrochemical industry
* Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days.
*
14
Demand growth shall overcome new capacity
additions
Source: CMAI, March/2011
EthyleneDemand
CAGR 10-15
4.4%
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 in Middle East
Greenfield projects: 5-6 years to startup
Supply
CAGR 10-15
2.8%
2,067 743 962
(1,282) (1,227) (699) (150)
529
468
490
3,229
1,816
1,200
2,545
375
400
550
6,521
3,216
2,652 3,774
2,805
2,462
2010 2011 2012 2013 2014 2015
Asia
Africa
Middle East
Europe
Americas
Closures
Postponed/Delayed
4,514
-19% Delayed
3,8143,423
6,090
3,417
9,010
8.4%
2.6% 2.3% 2.5% 3.3%2.1%
6.7%
3.4%5.2% 4.5% 4.4%
4.3%
2010 2011 2012 2013 2014 2015
Supply Growth %
Demand Growth %
2,067 743 962
(1,282) (1,227) (699) (150)
529
468
490
3,229
1,816
1,200
2,545
375
400
550
6,521
3,216
2,652 3,774
2,805
2,462
2010 2011 2012 2013 2014 2015
Asia
Africa
Middle East
Europe
Americas
Closures
Postponed/Delayed
4,514
-19% Delayed
3,8143,423
6,090
3,417
9,010
6.7% 3.4%
5.2%4.5% 4.4% 4.3%
6.8%
3.2%2.3% 2.6%
4.0%
2.1%
2010 2011 2012 2013 2014 2015
Demand Growth % Supply Growth %
Capacity
(MM ton)
15
World indicative ethylene cash costs
Source: CMAI 16
Agenda
Recent financial performance
Final considerations
17
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
“BECOME THE GLOBAL
SUSTAINABLE CHEMICAL
LEADER, INNOVATING
FOR BETTER SERVE THE
PEOPLE”.
Strategic Vision
18
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 newprojects in Brazil
Internationalization
Latin America and US as good alternatives for future competitive feedstocksupply
Partnerships with local players to develop local industry at competitive gasprices
Sustainable Chemicals
Initial focus in renewable raw materials with no changes for customers interms of investments and applications
Partnerships to enter other avenues in green products
19
Industrial Assets
New Projects
2006 2007 2008 2009 2010
Imports
Domestic Sales
748
950982857
1,119
17%
31%26%34%19%
Brazil – adding value to the Vinyls chain
Source: Braskem
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 ~R$850 million
Expected NPV ~US$450 million
Long term financing from BNDES (up to R$525 million) andfrom BNB (R$200 million) at very competitive costs
Expected disbursement of R$380 million in 2011
Support for Brazil’s infrastructure projects
Brazil currently imports ~30% of its needs
PVC Domestic Demand (kton)
20
Brazil – adding value to the cracker chain
Source: Braskem
Butadiene
Operational start-up : 2013
Capacity: 100 kton/y
Location: Triunfo (Rio Grande do Sul)
Investments of R$300 million
Raw material for the manufacture of rubber tiresand synthetic rubbers
21
Industrial Assets
New Projects
Tighter market balance sustaining higher prices
Light feedstock expansion limiting theavailability of C4 supply
Continuous consumption growth
Higher demand from emerging markets
Recovery of the mature markets
Attractiveness worldwide
Polybutadiene SBR
Styrene Butadiene Rubber
SSBR
Solution SBR
NBR
Acrylonitrile Butadiene
Rubber
TR
Thermoplastic Rubber
Brazil – potential capacity expansion projects
PVC
PE
Greenfield adding ~250
kton/y in the northeast of
Brazil
~ 130 kton/y through DBNs
adding LDPE, HDPE and
LLDPE in Bahia, Rio de
Janeiro and São Paulo
(southeast of Brazil)
COMPERJ – from 1.1 to 1.5
million tons of ethylene
2013 - 2015 2016 - 2018
22
PP
~ 100kton/y through DBNs in
Rio Grande do Sul (south of
Brazil) and São Paulo
(southeast of Brazil) or 300
kton/y trhrough a Greenfield
in Bahia (northeast of Brazil)
Sustainable Chemicals
Green PP2013
Successful track record for
implementing projects:
term and costs
Capture of 2.5t CO2/t PE
Partnership with
Customers
Innovation in bioplastic
market
Production integrated with
green propylene
Capture of 2.3t CO2/t PP
Development
Partnerships for the
development of competitive
technologies
Cooperation agreement with
Cenpes (Petrobras Research
Center)
Development of other cracks
streams to sustainable
chemicals
PE integrated project study
Braskem becomes
a global leader in
biopolymers
23
Green PE2010 – started
up in 4Q10
Access to competitive feedstock The Ethylene XXI Project (Mexico)
Mexico: Ethylene XXI Project
Operational start-up: January 2015
JV between Braskem (65%) and the Mexicangroup IDESA (35%) for the purchase of ethanefrom PEMEX
Integrated project: 1 Mton/y of ethylene and1 Mton/y of PE
Fixed Investment: US$ 2.5 billion over 5 years(project finance – 70% debt/30% equity)
Expected NPV over US$ 3 billion
Strategic partnership with Ineos and LyondellBasell for PE plants technologies and withTechnip for the cracker
Financial Advisor hired: Sumitomo Bank
Structuring of the participation of ECAs andMLAs1 – already received over US$ 6 billion inletters of interest
Source: Braskem 1 Export Credit Agency (ECA) and Multilateral Agency (MLA) 24
Currently deficit above 1.1 Mton (2010) - ~70% of the market – being supplied by
US players
Estimated deficit in 2015 (project start-up): 1.7 Mton
Annual Growing rate foreseen: 4.5 % (Period: 2010-2025)
Mexican Polyethylene Market
25
0,4 0,5 0,5 0,5 0,6 0,7 0,7 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8
1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,01,1 1,1 1,1 1,2 1,1 1,0 1,1 1,1 1,3 1,4 1,5
0,7 0,8 0,9 1,0 1,1 1,2 1,3 1,4 1,5 1,6 1,7
-
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
MM
ton
/ye
ar
Polyethylene Mexican Market
Supply Ethylene XXI Deficit
Converters Profile
Total: 3,500 Converters
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
Big4% Medium
12%
Small24%
Micros60%
26
Unique pipeline of growth in the Americas
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
2010 - 2012 2013 - 2015 Projects under evaluation
Green PE – already
operational
(+ 200 kton/y ethylene)
PVC Expansion
(+ 200 kton/y)
Ethylene XXI - Mexico
(+ 1,000 kton/y ethylene
and + 1,000 kton/y PE)
Butadiene (100 kton/y)
Green PP
(+ 30 kton/y ethylene/
propylene)
Brownfield/Greenfield expansion
projects in Brazil: PE and PP assets
Comperj – integrated complex in Rio
de Janeiro (southeast Brazil)
New Biopolymers Plants in Brazil –
integrated project (1st and 2nd
generation)
Peru(+ 600 to 1,000 kton/y
ethylene/PE)
Venezuela – under revaluation
Source: Braskem
Conso
lidate
d P
roje
ct
Pip
eline
27
Agenda
Recent financial performance
Final considerations
28
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Basic Petrochemicals priorities
Operational excellence, as well as in HSE and cost competitiveness
Maximize the capture of synergies from the integration process of Quattor’s Basic
Chemicals business
Ensure energy efficiency and competitive sources
Redesign of the petrochemical complexes (chains and infrastructure), identifying
opportunities to add value to available chains
Detail the investment plan for meeting future domestic demand of basic
petrochemicals
Prepare and implement a plan to capture synergies from Petrobras refineries
Identify business opportunities related to Pre-Salt, from existing product portfolio
29
Polymers priorities
Operational excellence, as well as in HSE and cost competitiveness
Maximize synergies capture from the integration process of Quattor PE and PP
businesses
New product portfolio, reducing industrial and supply chain complexity with less
SKU´s
Continuous effort of Braskem with its customers to create value through innovation
and cost efficiency, bringing new solutions to the people
Plastics uses and advantages promotion
Detail the investment plan for meeting the Brazilian demand for PE, PP and Vinyls
Identify business opportunities related to Pre-Salt, from existing product portfolio
30
International business priorities
Conclude basic engineering (FEL 3) and project finance in order to obtain FID (final
investment decision) for the Mexico Project in 2011
Identify and implement synergies opportunities from operations in USA and Mexico
Advance in the integration and operational improvement process of the PP business
in the USA
Assess potential acquisition of assets in the USA, aimed at increasing Braskem’s
market share and value creation (“smart buy”)
Analyze opportunities related to shale gas availability
Expand Braskem’s leadership in Sustainable Chemistry
Ensure participation in potential projected in Peru, Venezuela and Bolivia
31
Agenda
Recent financial performance
Final considerations
32
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Main numbers for 2010 x 2009
Exports 23% 26% 23% 26%
22.647
27.829
2009 2010
11.620
15.833
2009 2010
Net Revenue (US$ million)
+23% +36%
Net Revenue (R$ million)
3.181
4.055
2009 2010
EBITDA (R$ million)
+27%
* 2007: Last dividend distribution
% of NetIncome
51% 40%
278
666
2007 2010
+139%
Dividends (R$ million) *
398
1,889
2009 2010
+375%
Net Income (R$ million)
1.638
2.308
2009 2010
EBITDA (US$ million)
+41%
33
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
*2009 data does not include Quattor expansion of 200 kton
86% 87%78% 83% 80% 85%
94% 93%
2009 2010 2009 2010 2009 2010 2009 2010
Ethylene Polyethylene Polypropylene PVC
63%71%
83% 89% 94%
4Q09 1Q10 2Q10 3Q10 4Q10
Source: Braskem
Capacity utilization rates were positively impacted by
the improvement of Quattor’s assets
Braskem consolidated operating rates %
Quattor - Ethylene
34
North America29%
Argentina21%
Colombia15%
Mexico1%
Asia10%
Europe10%
Others14%
Source: Abiquim, Braskem
Origin of Imports in 2010(PE, PP and PVC)
Americas account for 67% of imports
Braskem’s Sales Profile – 2010
Braskem’s Performance – 2009 Vs. 2010 (Thousand tons)
Imports represented 26% of thedomestic market
Value added products and potential market growth
are key differentiators of value creation
35
29%
18%
13%
9%
7%
6%
4%
4%
10%
FOOD PACKAGING
RETAIL
HYGIENE AND CLEANING
CONSUMER GOODS
CONSTRUCTION
AUTOMOTIVE
AGRIBUSINESS
INDUSTRIAL
OTHERS
3,072 3,413
2009 2010
Braskem
+11%
Value creation through acquisitions
36
Quattor’s EBITDA Performance (R$ million)
Braskem America’s EBITDA Performance (US$ million)
107
214
302
361
1Q10 2Q10 3Q10 4Q10
+99%
+41%
+19%
554
984
2009 2010
+78%
37
22
32
23
1Q10 2Q10 3Q10 4Q10
-30%
26*
*Excluding the non-recurring positive ajustment in the inventory booking criteria of R$ 10 MM.
66
114
2009 2010
+73%
Dec 2009
Gross Debt: R$ 17,637 MM
Net Debt: R$ 11,417 MM
EBITDA: R$ 3,181 MM
Average Debt Term: 6.6 years
Gross Debt/EBITDA: 5.54x
Net Debt/EBITDA: 3.59x
LEV
ERA
GE
Dec 2010
Gross Debt: R$ 12,728 MM
Net Debt: R$ 9,839 MM
EBITDA: R$ 4,055 MM
Average Debt Term: 12.5 years
Gross Debt/EBITDA: 3.14x
Net Debt/EBITDA: 2.43x-32%
-14%
-28%
Indebtedness and leverage decrease
Non-recurring Financial Expenses: R$464 million in 2010
Source: Braskem
Million of R$ 2010 2009
Change
(%)
Net Financial Result -1.618 266 -
Foreign Exchange Variation (FX) 405 2.782 -85%
Monetary Variation (MV) -355 -511 -31%
Net Financial Result Excluding FX and MV -1.668 -2.005 -17%
37
ForeingEntities
5%
Gov.Entities
22%
Banks52%
Capital Market
21%
Debt reduction and lengthening the average maturity
of debt
DEBT PROFILE
2009
2010
More balanced source of funds.
ForeingEntities
1%
Gov.Entities
26%
Banks35%
Capital Market
38%
Issue of US$450 million in perpetual bonds, project finance prepayment and others financing operations lengthened the average debt term to 12.5 years
2,4961,733
1,245
1,8201,694
1,0731,360
1,244
2,594
393
583*
2011 2012 2013 2014 2015 2016/2017
2018/2019
2020 onwards
12/31/10Cash
13%
10%
14%13%
8%
11%10%
20%
2,889
Amortization Schedule(1)
(million of R$)12/31/2010
(1) Does not include transaction costs*US$350 million of Stand byInvested in US$
Invested in R$
Agency Rating Outlook Reviewed in
S&P BBB- Stable 03/30/2011
Moody’s Baa3 Stable 03/31/2011
Fitch Ratings BB+ Positive 01/11/2011
Corporate Credit Rating – Global Scale
38
Total Investment in 2011 is estimated at R$1.6 billion
InvestmentsR$ million
Source: Braskem
For 2011, capex is estimated at R$
1.6 billion, out of which
approximately 30% destined to
capacity expansion projects, 20% to
scheduled maintenance shutdowns,
and the remaining to operational
investments.
301
47
343
6
283
211
85
127
373
2010
Maintenance Shutdown
HSE
Productivity
Capacity Increase / PVC Alagoas
Equipment Replacement
Quantiq
Green PE
Mexico
Others
1,777
Investimentos(R$ milhões)
278
89
243
407
94
142
391
2011e
1,644
39
Agenda
Recent financial performance
Final considerations
40
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Petrochemical market
Political instability in Arab countries and oil price volatility
Global petrochemical scenario continues to be marked by recovery, but oversupply is still expected
for 2011. Mitigating factors:
Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran
Strong demand from emerging countries like China, India and Brazil
Braskem priorities
Strengthening of the Brazilian petrochemical and plastics production chain
Guarantee, through an investment plan, the supply to the Brazilian future market growth: ~2x GDP
Ensure capture of identified synergies
Add value through the acquired assets
Quattor: continue improvement in its operational efficiency
Braskem America: return above capital employed
Ensure domestic competitive feedstock for both current assets and new capacities, strengthening the
Brazilian petrochemical industry;
Maintain the capital structure health, making viable the execution of the investment plan while
maintaining the investment grade;
Develop partnerships required for the Company’s growth;
Ensure that Braskem follows its growth course towards a stronger and more competitive position in
the global industry
Outlook and Priorities
41
Braskem DayCarlos Fadigas
CEO
April 19, 2011