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Investors MeetingInvestors Meeting
March, 2011March, 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
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� The petrochemical industry
� Final considerations
� Braskem consolidated
3
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� The petrochemical industry
� Final considerations
� Braskem consolidated
4
Overview
� Braskem has become the leading thermoplastic company in the Americas with Quattor acquisition in January 2010
� Foothold in the USA with Sunoco PP assets acquisition in February 2010
� Attractive project pipeline in Latin America
� Listed in 3 stock exchanges: BM&FBovespa, NYSE and Latibex - 100% tag along
�Market Cap (03/18/2011) – US$ 9.9 billion
� EV – Net debt Dec 2010 – US$ 15.8 billion � 3 PP
�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
� Petrobras as the main supplier in Brazil
Financial Highlights
Industrial Assets
� 1 gas cracker� 1 PP� 1 PE
� 1 naphtha cracker� 2 PP� 3 PE
� 1 naphtha cracker� 1 ethanol cracker� 5 PE� 2 PP
� 1 PVC� 1 Chlorine-soda
�1 naphtha cracker� 4 PE� 1 PP� 1 PVC�1 Chlorine-soda
2009 2010
∆R$ billion
BraskemStand alone
Consolidated
Net Revenue 15.2 27.8 + 83%
EBITDA 2.5 4.1 + 64%
Net Debt/EBITDA 2.67x 2.43x - 9%
Financial Highlights
Potential Upside
� Synergies:
- Additional EBITDA – R$ 495 million on a recurring basis
� Expectation of cycle recovery as of 2012
5
Consistent growth
EBITDA 1 (US$ million)
10,21210,412
Nominal Capacity (kton)
Resins
Ethylene
19.1 19.3
23.1
18.0
14.1
16.9
13.5
14.4
14.6
1,626 1,642
2,308
Green Resin
2002 2003 2004 2005 2006 2007 2008 2009 2010
EV/
EBITDA
EV
(US$ bi)
Source: Braskem 1 Pro-forma figures for 2009 and 9M10: Braskem + Quattor + Braskem America
2.4 3.9 5.8 4.2 4.7 7.6 5.1 7.5 15.8
5.2x 6.7x 6.6x 5.0x 6.2x 4.6x 3.8x 4.8x 6.8x
2,965 3,045 3,145 3,1903,621
5,551
6
5,921
Politeno
Ipiranga, Copesul and Paulínia
Petroquímica Triunfo
Acquisitions Quattor + Sunoco
457581
871 851764
1,626
1,337
1,642
2002 2003 2004 2005 2006 2007 2008 2009 2010
Ownership Structure Leveraging relationship with Petrobras
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 client;
- Investment Grade by all 3 Rating Agencies.
- Conglomerate;
- More than 30-years in the petrochemical industry;
- Investment Grade by Moody’s and Fitch.
Source: Braskem
• Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned
company
• Sole vehicle for petrochemical investments of both shareholders, Braskem has the right:
- to lead all petrochemical investments identified by Petrobras;
- if not of its interest, has the right to commercialize such products.
Go
ve
rna
nce
7
Braskem: strong potential for outperform
Braskem:Consolidated position in main regional market of thermoplastic resins*
North America# 32 players
M.East# 38 players
W.Europe# 29 players
N.Asia~# 150 players
S.AsiaCapacity (000 Metric Tons)
Source: Analysts reports, CMAI capacity list
South America# 12 players
* PE, PP and PVC
# 38 playersS.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
8
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� The petrochemical industry
� Final considerations
� Braskem consolidated
9
Quattor - key indicators
Acquisition opportunities
� Asset concentration in Southeast (~70% Brazilian consumption);
� Diversified RM matrix;
� Joint administration of raw
Operating rate (%) 1Q10 2Q10 3Q10 4Q10
Ethylene(1) 71% 83% 89% 94%
PE 61% 76% 84% 91%
Operational Indicators
Financial Indicators
(1) Considering the 200 kty expansion
� Joint administration of raw material agreements;
� Integrated industrial planning;
� Reduction of working capital costs;
� Tax and logistical synergies.
10
R$ million 1Q10 2Q10 3Q10 4Q10
Net Revenue 1,250 1,459 1,697 1,807
EBITDA 107 214 302 361
EBITDA Margin 8,6% 14,7% 17,8% 20,0%
Financial Indicators
+99% +41% +20%
2011 EBITDA*: R$377 million 2012 EBITDA*: R$495 million
350
495
87
59
R$ million
377
82
61
R$ milhõesR$ million
Synergies from Quattor acquisition totaling R$377 million in EBITDA for 2011
11* Annual and Recurring
350
Industrial Logistics Supply EBITDA Synergies
Source: Braskem
234
Industrial Logística Suprimentos EBITDA SinergiasIndustrial Logistics Supply EBITDA Synergies
Identification of new opportunities, efficient and rapid implementation of initiatives to
capture synergies
� Integrated planning for industrial units
� Centralized maintenance plan assets strategy
� Optimization of freight and gains in distribution and storage
� Joint purchase of materials for industrial operations
Braskem America (former Sunoco Chemicals)
Marcus Hook, PA� 1 PP
R&T Center
Pittsburgh, PA
Neal, WV� 1 PP
Acquisition opportunities
� Global-scale, state-of-the-art assets – technology and age similar to Brazil’s polypropylene (PP) assets;
� Development of a global production base;
� Consolidation of industrial assets;
� Competitive costs for some 70% of raw materials;
12
La Porte, TX� 1 PP
Challenges
� Knowledge of North American distribution market;
� Add value to supplier ⇔ client chain (substitute distributor);
� Highly disperse market.
2009 2010
Net Revenue (R$ million) 1,737 2,267
EBITDA (R$ million) 134 201
EBITDA (USD million) 66 114
raw materials;
� Platform for greenfield projects in Latin America.
Disbursement: US$350 million
Financial Indicators
+73%
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� The petrochemical industry
� Final considerations
� Braskem consolidated
13
“BECOME THE GLOBAL
SUSTAINABLE CHEMICAL
LEADER, INNOVATING FOR
Strategic direction
LEADER, INNOVATING FOR
BETTER SERVE THE
PEOPLE”.
14
Growth strategyOn the path to leadership in sustainable chemicals
Green PP
2013
�Successful track record for
�Innovation in bioplasticmarket
�Production integrated with
Development
�Partnerships for the development of competitive technologies
Green PE
2010
�Successful track record for implementing projects: term and costs
�Capture of 2.5t CO2/t PE
�Partnership with Clients
�Production integrated with green propylene
�Capture of 2.3t CO2/t PP�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
15
Expansion with competitiveness increase
BRAZIL
PVC Expansion
�Operational start-up : May 2012
�Expansion of 200 kton/y in PVC capacity in Alagoas
�Investments of US$470 million
�Expected NPV ~US$450 million
�Approval of a financing line of up to R$525 millionfrom BNDES and R$200 million from BNB
�Expected disbursement of R$380 million in 2011
Source: Braskem
Industrial Assets
New Projects
�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)
2006 2007 2008 2009 2010
Imports
Domestic Sales
748
950982857
1,119
17%
31%26%34%19%
16
Growth strategyProjects with competitive materials
Ethylene XXI Project – JV Braskem and IDESA - Mexico
Characteristics
�Startup: January 2015
�Ethane acquisition from PEMEX
� Integrated project: 1 Mton ethylene and 1Mton
PEs
� Investment: US$2.5 billion (project finance)
�Mexico imports 68% of its PE demand (1.8
million ton/year)
PEMEX Gas (Basic Petrochemicals)
Ethane Cracker
Ethane
66,000 bpd 1,000 kton/y
Gas
Ethylene
million ton/year)
�Financial advisor: Sumitomo Bank
�Strategic partnership with Ineos and Lyondell
Basell for PE plants technologies
�Structuring of Project Finance: already received
US$ 5 billion in letters of interest
2011 Focus
�Selection of the cracker technology
�Structuring of Project Finance: due diligence, negotiation of financial agreements
�Studies on environmental impacts and beginning of the process to obtain the construction licenses
�Conclusion of the engineering agreement
�Definition and negotiation of EPC agreements (Engineering, Procurement and Construction)
1,000 kton/y
PEMEX Exploration
and Production
Gas
Manufacturing Industry
Polyethylene
17
Unique pipeline of growth in the Americas
� Green PE(+ 200 ktony ethylene)
� Ethylene XXI - Mexico(+ 1,000 ktony ethylene and + 1,000 ktony PE)
� Green PP
� Brownfield/Greenfield expansion projects in Brazil: PE and PP assets
� New Biopolymers Plants in Brazil –integrated project (1st and 2nd
generation)
� Comperj
Consolidated Project Pipeline
� 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
(+ 200 ktony ethylene)
� PVC Expansion (+ 200 ktony)
� Green PP(+ 30 ktony ethylene)
� Comperj
� PeruProj. (+ 600 to 1,000 ktony ethylene/PE)
� Projects in Venezuela(+300 ktony PP) (integrated ethylene/PE)
Source: Braskem
Consolidated Project Pipeline
18
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� The petrochemical industry
� Final considerations
� Braskem consolidated
19
North America
29%Asia
Europe
10%
Others
14%
� Origin of Imports in 2010
(PE, PP and PVC)
� Braskem’s Sales Profile – 2010
� Braskem’s Performance – 2009 Vs. 2010 (Thousand tons)
Value added products and potential market growth are key differentiators of value creation
3,072 3,413
2009 2010
Braskem
+11%
Argentina
21%
Colombia
15%
Mexico
1%
Asia
10%
Source: Abiquim, Braskem
Americas account for 67% of imports
� Braskem’s Sales Profile – 2010
� Imports represented 26% of the
domestic market
20
29%
18%
13%
9%
7%
6%
4%
4%
10%
FOOD
PACKAGING
RETAIL
HYGIENE AND
CLEANING
CONSUMER
GOODS
CONSTRUCTION
AUTOMOTIVE
AGRIBUSINESS
INDUSTRIAL
OTHERS
Structured resource base to support client needs:
� Over R$ 330 million in R&D assets
� More than 190 researchers
� 8 pilot plants
� More than 400 patents filed worldwide
Innovation pipeline: new developments to aggregate further value
Innovation and Technology Center
�Strenghtening the value chain competitiviness
PP
Coffee Bags
� 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
PE
BIOPOLYMERSInnovation pipeline
NPV: ~US$ 510 millionPP
PVC
PVC
Windows
PVC
Doors
21
Raw material matrixDiversification to compete globally
Raw Material Profile* (2010) Braskem Post-Acquisitions** Braskem Post-Projects***
Implementation of Project Pipeline
46%
14%
92%17%
56%
8%
37% 30% 13%
17%
67%
3%
24%
15%58%
3%
�More balanced and diversified supply of raw materials
�Competitive natural gas price vs. international reference prices
(1) Ethane, Propane and HLR(2) Naphtha and condensate
*Based on resin-production capacity. Sunoco buys propane directly** Considering Green Ethylene capacity *** Considering the Mexico Project
Propane
�USG reference to competitive prices
Natural Gas
� 100% Petrobras supply with competitive prices versus international prices
Ethanol
Naphtha / Condensate
� ~70% of naphtha supplied by Petrobras with competitive price formula
� 30% direct imports from various international suppliers
Quattor Sunoco Braskem
Liquid (2) Refinery propylene Gas (1)
Ethanol
22
Debt reduction and lengthening the average maturity of debt
DEBT PROFILE
2010Foreing
Entities
1%
Gov.
Entities
26%Capital
Market
38%
393
583*
13% 14%13%
20%
Amortization Schedule(1)
(million of R$)
12/31/2010
Foreing
Entities
5%
Gov.
Entities
22%
Banks
52%
Capital
Market
21%
2009
→→→→ More balanced source of
funds.
Banks
35%
Issue of US$450 million in perpetual bonds, project finance prepayment and
others financing operations lengthened the average debt term to 12.5 years
23
2,4961,733
1,245
1,8201,694
1,0731,360
1,244
2,594
2011 2012 2013 2014 2015 2016/
2017
2018/
20192020
onwards12/31/10
Cash
10%8%
11%10%
2,889
(1) Does not include transaction costs
*US$350 million of Stand byInvested in US$
Invested in R$
-
BB+
BB
BB-
stable
RATING
Ba1
Ba2
Ba3
-
+BBB-Baa3
Jan/09 +May/09
Jan&Jul/10
Post-Acquisitions
Investment Grade
Upgrade Conditions:
Maintenance of high liquidity (cash or equivalents -stand-by) above R$3 billion. Cash above R$3 billionsince Dec/2008.
Capitalization of Braskem as pre-condition foracquisition. Shareholder movements;
Successful integration with capture of synergies andincrease in cash generation (EBITDA increase R$ 3,1bi to R$3.8 bi);
�
�
�
Braskem:Reaffirmed post-acquisition ratings
On January 11, 2011, Fitch changed from BB+ with stable outlook to BB+ with positive outlook and placed the Company on review for a potential upgrade
Source: Braskem
BB-
B+
Ba3
B1
2009 2010
Post-Acquisitions
The acquisitions:
Strengthened strategic positioning;
Increased # of plants, sites and geographic diversification;
Diversification of raw material mix;
More disciplined and less volatile domestic market ;
High governance standards;
Petrobras participation.
Decrease in Net Debt/EBITDA ratio expected to2.5x. In first post-acquisition quarter we alreadyreduced this ratio from 3.46x to 3.12x. In 2Q10 wereduced to 2.84x, and to 2,63x in 3Q10.
Braskem Ratings (Global Scale)
BB+ / Stable Outlook
Ba1 / Stable Outlook
BB+ / Positive Outlook
24
Total Investment in 2011 is estimated at R$1.6 billion
InvestmentsR$ million
* For 2011, capex is estimated at R$
1.6 billion, which approximately 85
127
373 Maintenance Shutdown
HSE
Productivity
1,777
142
391
1,644
25Source: Braskem
30% destined to capacity expansion
projects, 20% to scheduled
maintenance shutdowns, and the
remaining to operational
investments.
301
47
343
6
283
211
85
2010
Productivity
Capacity Increase / PVC Alagoas
Equipment Replacement
Quantiq
Green PE
Mexico
Others278
89
243
407
94
142
2011e
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� Final considerations
� Braskem consolidated
� The petrochemical industry
26
Ethylene: Operating rate 2010
Industry in2010
� Operating rates decreased in 4Q10 driven
by the rigorous winter in the Northern
hemisphere and operational problems at 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
MM ton
81
89 88
74
8384
84
94
82
78
86
91
50
60
70
80
90
0
5
10
15
20
Europe N. America Asia M. East World Braskem
Outlook on the global petrochemical industry
*
Source: CMAI, Parpinelli Tecnon
� Global operating rate at 83.5% in 2010, 3.1
p.p. over previous forecast
Global Scenario
� New capacity additions can lead to the
closing down of non competitive assets on
a permanent basis, especially in Europe
� 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
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 (%)
27* Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days.
Demand growth shall overcome new capacity additions
EthyleneDemand
CAGR 10-154.4%
Supply
CAGR 10-152.8%
Asia
Africa
Middle East
Europe
6,521
2,805
4,5146,090
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%
Capacity(MM ton)
Source: CMAI, March/2011
� 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
� Greenfield projects: 4-5 years to startup
Europe
Americas
Closures
Postponed/Delayed
Supply Growth %
Demand Growth %
28
2,067 743 962
(1,282) (1,227)(699) (150)
529
468
490
3,229
1,816
1,200
2,545
375
400
550
3,216
2,652
3,774
2,805
2,462
2010 2011 2012 2013 2014 2015
-19% Delayed
3,8143,423
3,417
9,010
Brazil: strong potential growth
2010 Market Share Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth%
69%
26%
5%
Braskem
Others
Imports-0.6%
7.5%
4.5%
7.0 - 7.2
5.3 - 5.4
Million tons
Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE. 29
Per-capita Consumption of PE, PP and PVC (kg/person)
Brazil:
2009 2010 2011e 2015e
Brazilian's thermoplastic demand (MMton) GDP (Growth %)
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 = 1.5x to 2.0x GDP
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
� Final considerations
� Braskem consolidated
� The petrochemical industry
30
Outlook and Priorities
Petrochemical market
Political instability in Arab countries and oil price volatility
Global petrochemical scenario continues to be marked by recovery, but oversupply is still expectedfor 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
To follow the domestic resins’ market growth: 9-10% in 2011
Ensure capture of the identified synergies
Adding value through the acquired assets
� Quattor: continue improvement in its operational efficiency
� Braskem America: return above capital employed
Maintaining liquidity and financial discipline
Growth Projects
� PVC Alagoas
� Implementing project in Mexico, which is based on competitive raw materials
� To define Comperj’s configuration with Petrobras
� Expand the use of renewable feedstock
31
Pr/share BRKM5 Performance
+
Why Braskem?
Consolidated (R$ billion) 2011e Multiple
EBITDA (consensus) 4.4
Synergies to 2012 4.9
Market Capitalization 16.5 22.9
EV 26.3 32.8
EV/EBITDA 6.0x 6.7x**
Price per share 20.60* 28.70
Proj. NPV to 2012 > R$1.12 bi
Value added by projects to
share price1.40
0
5
10
15
20
25
30
35
40
� Largest thermoplastic resin producer in the Americas
� Leader of important projects in Latin America with
competitive raw materials
� Emerging consumer market with potential per-capita growth
as additional driver
� Above-peer profitability
� Access to one of the world’s largest consumer markets
following the U.S. acquisition
� Successful trajectory of organic growth and acquisitions
� Shareholders hold long-term view with strategic synergies
for growth and value creation
� Leader in green chemicals
� Huge potential for value creation
� EBITDA increase
� EV/EBITDA 2011 multiple
below peers’ multiple (6-8x)
*BRKM5 as of 03/18/11 ** Peer Multiple Feb/2011
Source: Bloomberg.
Price per share after projects 30.11R$ USD
32
Investors MeetingInvestors Meeting
March, 2011March, 2011
AppendixAppendix
Leader in the Americas and a top 8 global player in resins capacity
4th
1st
Ca
pa
city
in th
e A
me
rica
s (
kto
n/y
)
3,035
4,077 4,200
2,525 1,995 2,311
2,915 1,230
627
1,731
1,090
822 875
510
510
1,210
2,340
PVC
PP
6,460
4,827
3,595
4,256
3,082
2,340 2,3111,915
5,307
950
Lyondell Basell
ExxonMobil
SINOPEC Dow Formosa SABIC Ineos Braskem post
operations
Total IPIC Reliance PetroChina Braskem
10,914
9,3118,668
7,749 7,284 7,1096,541 6,460
4,681 4,564 4,303 4,079 3,595
transactions
8th
12th
Ca
pa
city
in th
e A
me
rica
s (
World
Ca
pa
city
(kto
n/y
)
Braskem post
transactions
Exxon Mobil
Dow Lyondell Basell
Braskem Formosa Shintech Chevron Philips
Quattor Sunoco
2,525 1,995
1,050
2,311
1,040 950
2,340 PP
PE
35
Global Ethylene and Resins supply/demand
Global Ethylene Supply/Demand (Mton/y)
133 143 148 150 153 156 161
112 119 123
130 135 141 147
2009 2010 2011e 2012e 2013e 2014e 2015e
Supply
Demand
Source: CMAI, March 2011
Global Resins Supply (Mton/y) Global Resins Demand (Mton/y)
* Compounded Annual Growth Rate
2009 2010 2011e 2012e 2013e 2014e 2015e
67 71 75 79 83 88 92
45 48 51 54 57 61 64 32 34 37 39 41 43 45
2009 2010 2011e 2012e 2013e 2014e 2015e
144
173163154
200182
191
CAGR* 09-15
5.7%
82 90 93 95 98 99 103
55 61 65 67 70 71 73
43 46 50 51 52 52 53
2009 2010 2011e 2012e 2013e 2014e 2015e
PVC
PP
PE
181
214207229
219 223
CAGR* 09-15
4.0%
197
36
Resins demand by region
2010 Resins (PE, PP, PVC) Demand by region
Africa
3%
Europe
18%
China
27%
Source: CMAI 2010 estimates
North America
17%
South America
6%Middle East
6%
Asia ex-China
23%
The Brazilian demand for resins represents 3% of global demand
37
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
Capacity utilization rates were positively impacted by the improvement of Quattor’s assets
Braskem consolidated operating rates %%
Quattor - Ethylene
� 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
2009 2010 2009 2010 2009 2010 2009 20104Q09 1Q10 2Q10 3Q10 4Q10
Source: Braskem 38
World indicative ethylene cash costs
Source: CMAI39
Revenues breakdown – 4Q10
BTX* 7%
Cumene 2%
ETBE 2%
Fuel 4%Others 10%
Net Revenue by Product(1)
(4Q10)
Source: Braskem
Resins 66%Ethylene 4%
Propylene 3%
Butadiene 4%
1 Does not include naphtha/ condensate/crude oil processing and distributor sales
* Benzene, Toluene, Paraxylene and Orthoxylene
40
4Q10 and 2010 COGS breakdown
Naphtha , 51.5%
Other Variable
Costs, 6.9%
Labor, 3.4%
Services, 1.5%
Others, 0.7%
Deprec / Amort,
7.5%
Freight, 4.1%
COGS 4Q10 (1)
Naphtha , 53.1%
Natural Gas,
Other Variable
Costs, 7.2%
Labor, 3.1%
Services, 1.5%
Others, 0.9%
Deprec / Amort,
7.0%
Freight, 3.9%
COGS 2010 (1)
Source: Braskem
Gas as
feedstock, 18.4%
Electric Energy,
3.5%
Natural Gas,
2.5%
1 Does not include naphtha / condensate / crude oil processing
and Quantiq costs
Gas as
feedstock, 16.9%
Electric Energy,
4.3%
Natural Gas,
2.4%
(1) Does not include naphtha / condensate / crude oil processing
and Quantiq costs
41
Exports Destination – 4Q10
North
Europe 18%
Asia 4%
Exports Destination
4Q10
Source: Braskem
The Export Market represents 26% of Company’s Net Revenue.
North
America 44%
Central
America 4%
South
America 29%
42
� Contribution margin was positive impacted by the
higher sales volume and the improvement in resin-
naphtha spread. FX impacted by the appreciation in
Brazilian real.
R$ million
1,979
FX impact
on costs 2,089
FX impact
on revenues(3,140)
EBITDA performance: 2010 vs. 2009
**2009 non-recurring effect amounts R$135 million*SG&A: R$244 million of non-recurring expenses in 2010
3,181
523
1,051
441 135
4,055
EBITDA
2009
Volume Contribution
Margin
FX Fixed Costs
SG&A
Non recurring
effect 2009
EBITDA
2010
( )
( ) ( )
* **
Source: Braskem43
Debt Profile
Foreign Gov.
Entities
1%
Brazilian Gov.
Entities
26%
Capital Market
Gross Debt by Category
CDI
12%
BRL - PRE
6%
TJLP
20%
Gross Debt by Index
Banks
35%
Capital Market
38%
USD-PRE
56%
USD-POS
6%
Source: Braskem44
Outstanding Bonds & Outstanding Ratings
Outstanding Bonds MaturityCoupon
(% p.a.)
Yield *
(% p.a.)
US$250 MM Jan/2014 11.750 3.9
US$250 MM Jun/2015 9.375 4.3
US$275 MM Jan/2017 8.000 5.7
US$500 MM Jun/2018 7.250 5.8
US$750 MM May/2020 7.000 6.3US$750 MM May/2020 7.000 6.3
US$450 MM Perpetual 7.375 7.3
Agency Rating Outlook Reviewed in
Fitch Ratings BB+ Positive 01/11/2011
S&P BB+ Stable 05/28/2009
Moody’s Ba1 Stable 05/21/2009
Corporate Credit Rating – Global Scale
* As of March, 18th
Source: Braskem / Bloomberg45
Covenants
2.64x 2.43x
Sep 10 Dec 10
(R$ million)
-8%
2.76x 2.56x
Sep 10 Dec 10
(US$ million)
-7%
Net Debt/ EBITDA
Source: Braskem
Facility Amount* Dec 10 Currency Type
Senior Notes R$ 500 MM R$ 500 MM R$ Issuance
Nippon Export and
Investment InsuranceUS$80 MM US$40 MM US$ Maintenance
EPP (Export Pre-Payment) US$725 MM US$400 MM US$ Maintenance
*The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / EBITDA ratio.
46