Durg CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN durg ESCORTS
2Q12 Presentation
1. Conference Call
2Q12
Investor Relations
São Paulo, August 14, 2012
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 Braskem and are subject to a number of risks
and uncertainties.
The forward-looking statements in this presentation are up-to-date as of June 30,
2012 and Braskem 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 decisions taken based
on the information in this presentation.
2
3. 2Q12 Highlights
Average capacity utilization at crackers of 88% in 2Q12
Market share in thermoplastic resins expanded by 3 p.p. to 71%
EBITDA of R$845 million, up 7% from 1Q12. In U.S. dollar, EBITDA was US$430 million
Extraordinary effects of R$108 million
Start-up and ramp-up of new PVC and butadiene projects on schedule. Normalized utilization
rate already expected in 3Q12
Mexico Project: earth moving works in final stages, with acquisition of long-term equipment
and start of construction works
Braskem advanced in its strategy to further diversify its raw material sourcing and improve
its competitiveness:
Acquisition of the splitter at the Marcus Hook refinery - allows for using refinery-grade
propylene (RGP), which has a cost advantage (US$200/ton) over polymer-grade
propylene (PGP), and ensures the continuity of the PP plant’s operations
Strengthening of the partnership with Enterprise Products for the supply of propylene for
an average term of 15 years. One of the agreements involves the construction by
Enterprise of a propane dehydrogenation unit (PDH)
New issue of US$250 million through the reopening of the 2041 bond, with yield of 6.983%
p.a.
3
4. Braskem continues to expand its presence in the Brazilian market,
despite the scenario of slowing demand
Brazilian Market for Thermoplastic Resins Origin of Imports (PE+PP+PVC) 2Q12
(kton) Origin of Imports - Resins 2Q12
71%
68% Others
12% Argentina
64% 65%
20%
Europe
15%
1,336
1,239 71% North America
1,201
68% 1,127 19%
Asia
64% 65% 17%
Colombia
3T11 4T11 1T12 2T12 17%
Mkt Share
Imports of thermoplastic resins accounted
for 23% of the domestic market in 2Q12,
3Q11 3T11 4Q11 4T11 1Q12 1T12 2Q12 2T12 down 39 kton ,or 16%, from 1Q12
Demand Mkt Sharemkt share
Braskem’ Braskem
Source: Alice /Braskem estimates 4
5. EBITDA Performance – 2Q12 vs. 1Q12
The slight improvement in contribution margin, which followed
the recovery in spreads, offset the lower sales volume. EBITDA R$ million
was positively impacted by exchange variation and
extraordinary effects in 2Q12.
FX impact
on revenue 743
FX impact
(532) on costs
845
108
787 212
( 28 )
551 38
( 236 ) (35 )
EBITDA Sunoco Recurring Volume Contribution FX Fixed Costs + Refis + ∆ EBITDA
1Q12 Compensation 1Q12 EBITDA Margin SG&A Sunoco 2Q12
Compensation
5
6. EBITDA Performance – 1H12 vs. 1H11
The contribution margin reduction, that followed the lower
spreads of the international market, more than offset the R$ million
positive effects from exchange variation and the higher sales
volume. EBITDA was positively affected by recognition of the
compensation received under the Sunoco supply agreement and
by the prepayment of tax installments under the Refis program.
FX impact
on 1,779
revenue
FX impact
(1,283) on costs
228
2,066
344 1,629
496
(267 )
( 1,238 )
EBITDA Volume Contribution FX Fixed Costs + Refis + Sunoco EBITDA
1H11 Margin SG&A Compensation 1H12
6
7. Strategy based on lengthening the debt profile and a strong
commitment to liquidity maintenance
Amortization Schedule(1)
(R$ million) Gross Debt by Category
Braskem’s high liquidity2 06/30/2012 Diversified Funding Sources
ensures that its cash and cash
equivalents cover the payment Brazilian and
of obligations maturing over Foreign Gov.
next 32 months. 33%
Entities
22%
*
1,213 Capital
18% Market
51% Banks
699
27%
13% 5,520
4,725 10%
6% 7% 6%
3,539 7%
2,839 3,088
2,116
1,761
937 1,123 1,198 1,030
06/30/12 2012 2013 2014 2015 2016 2017/ 2019/ 2021
Cash 2018 2020 onwards
(1) Does not
include transaction costs
Invested in US$
* US$600 million stand by
Net Debt / EBITDA (US$)
Invested in R$
US$ million 1Q12 2Q12
Credit Risk – Global Scale
Net Debt 6,106 6,508 +7%
Agency Rating Outlook Date*
EBITDA (LTM) 2,124 1,832 -14%
Fitch BBB- Stable 4/15/2012
Net
2.87x 3.55x +24%
S&P BBB- Stable 3/19/2012 Debt/EBITDA
Moody’s Baa3 Stable 4/19/2012
*Date of issue of the last analytical report on the company
2Includes US$600 million stand-by 7
8. Capex
Investments
(R$ million)
1,712
Investments of R$1,126 million in 1H12; 260 Mexico
~45% of total or R$508 million allocated to 113 HSE
capacity expansion projects; 1,126
34 145
PVC expansion plant accrued investment of Equipment Replacement
55
R$300 million, while the new Butadiene plant 115
Capacity Increase - Brazil
received R$162 million; 512
Maintenance
For 2012, total investment is estimated at 508
Productivity
R$1,712 million;
~40% allocated to various expansion projects in 343 Others
Brazil and to the Ethylene XXI greenfield project
207 35
in Mexico.
31
305
176
1H12 2012e
8
9. Acquisition of Marcus Hook propylene splitter
In July 2012, Braskem announced the acquisition of the propylene splitter assets at the Marcus
Hook refinery
The splitter will convert refinery-grade propylene (RGP) into polymer-grade propylene (PGP),
which is the raw material used to produce polypropylene
Diversifies feedstock and suppliers
Continuity of operations at Marcus Hook plant with PP capacity of 350 kton/y
Projected investment for the acquisition, the carve-out of assets and initiatives to increase
competitiveness:
Approximately US$56 million, with some 50% to be invested by end-2013
US$15 million in support from the local government
RGP has a historical cost advantage over PGP of around US$200/t
US$ / ton
Historical price 313
advantage of 231
Average
RGP vs. PGP
Jan-2010
Nov-2010
Jan-2012
Jan-2011
Nov-2011
Sep-2010
Sep-2011
May-2011
May-2012
May-2010
Jul-2010
Jul-2011
Mar-2010
Mar-2011
Mar-2012
9
10. 2H12 Outlook
Points of Concern
Macroeconomic environment still marked by high volatility
Management of European sovereign debt crisis and risk of
systemic crisis impact on world economic growth
Performance of Brazilian and Chinese economies
Potential Positive Factors
Growth in emerging countries compared to
1H12, even if only moderate
- Increased demand for higher-value products
plastics
Brazilian Government committed to
strengthening industry and stimulating growth
- Plano Brasil Maior (Brasil Maior Plan)
- Solution for combating tax incentives at ports
(PRS72)
- Measures to control excessive appreciation in
the BRL
- Transfers for use in low-interest loans for
investments in the industrial sector
Source: IHS (CMAI), research reports 10
11. Braskem’s priorities in 2012
Strengthening its relationship with Clients and expanding its market share
Building a Brazilian industrial policy that boosts the competitiveness of the petrochemical
and plastics chain
Increase Braskem’s competitiveness by capturing identified synergies, reducing fixed costs
and increasing utilization rates
Capturing additional cash generated by the expansion of the new PVC and Butadiene plants
in order to add value to existing chains
Final structuring of project finance in Mexico, with start-up scheduled for 2015, and start
of pre-sales efforts targeting Mexican clients
Liquidity and financial solidity maintenance in the current scenario marked by global crisis
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12. Conference Call
2Q12
Investor Relations
São Paulo, August 14, 2012