This presentation discusses Braskem, a Brazilian petrochemical company. It provides an overview of Braskem's leadership position in Latin America, growth strategy, financial performance, and outlook. The presentation notes that Braskem has a dominant market share in Brazil and a diversified portfolio. It discusses Braskem's recent acquisition of Quattor, which is expected to generate annual synergies of $377 million in EBITDA by 2011. The presentation also analyzes trends in the global petrochemical industry and expects demand growth to outpace new capacity additions between 2010-2015.
2. Forward-looking Statements
This presentation contains forward-looking statements. These statements are not
historical facts and are based on management’s objectives and estimates. The words
"anticipate", "believe", "expect", "estimate", "intend", "plan", "project", "aim" and similar
words indicate forward-looking statements. Although we believe they are based on
reasonable assumptions, these statements are based on the information currently
available to management and are subject to a number of risks and uncertainties.
The forward-looking statements in this presentation are valid only on the date they are
made (December 31, 2010) and the Company does not assume any obligation to update
them in light of new information or future developments.
Braskem is not responsible for any transaction or investment decision taken based on the
information in this presentation.
2
3. Braskem: Leader in PE, PP and PVC production in
the Americas
Dominant market share in South America, with 69% of Diversified portfolio of petrochemical products,
the Brazilian market with focus on PE, PP and PVC
Strong growth track record with attractive project Annual capacity of 6,460 kton
pipeline in Brazil, Latin America and Sustainable 31 facilities in Brazil and USA
chemicals (focus on renewable raw materials) Naphtha and gas based crackers (70/30)
Listed in 3 stock exchanges: BM&FBovespa, NYSE and Petrobras as the main supplier in Brazil (~70%
Latibex - 100% tag along of naphtha needs and 100% of gas needs)
Investment grade rating by S&P and Moody’s
Market Cap (03/25/2011) – US$ 10 billion
EV – Net debt Dec 2010 – US$ 16 billion 3 PP
Financial Highlights
2009 2010
Braskem ∆
R$ billion Consolidated
Stand alone 1 PVC
Net Revenue 15.2 27.8 + 83% 1 Chlorine-soda
1 naphtha cracker
EBITDA 2.5 4.1 + 64% 4 PE
Net Debt/EBITDA 2.67x 2.43x - 9% 1 PP
1 PVC
1 gas cracker
Potential Short term 1 Chlorine-soda
1 PP
Upside 1 PE
1 naphtha
Synergies: 1 naphtha cracker cracker
‐ Additional EBITDA – R$ 495 million on a 1 ethanol cracker 2 PP
5 PE
recurring basis as of 2012, out of which R$ 3 PE
2 PP
377 million in 2011
Expectation of cycle recovery as of 2012
Industrial Assets
3
4. Agenda
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Recent financial performance
Final considerations
4
5. Agenda
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Recent financial performance
Final considerations
5
6. Braskem: strong potential for outperform
Braskem responsible for over 60% of the capacity share of thermoplastic
resins* in South America – 69% market share in Brazil.
W.Europe
North America # 29 players
South America: # 32 players
Second player has
around 10% of Braskem’s
capacity
N.Asia
M.East ~# 150 players
Capacity (000 Metric Tons) # 38 players
S.Asia
Braskem: 5,510 Petroken: 180
~# 40 players
Ecopetrol: 548 PETROQUIM: 120
Petroquímica Cuyo: 130
Mexichem: 416 South America
PBB Polisur: 650 Polinter: 495 # 12 players
Pequiven: 185 Propilven: 115
Petro Dow: 42 Solvay Indupa: 541
Source: Analysts reports, CMAI capacity list * PE, PP and PVC 6
7. Brazil: strong potential growth
Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth% 2010 Market Share
Estimate: Resins Demand ~ 2.0x GDP
Others
15.0%
5%
10.0% Imports
2x GDP 26%
7.5%
1.0% 69%
4.5%
Braskem
-0.6%
2009 2010 2011e 2012e 2013e 2014e 2015e
Brazilian GDP (Growth %) Demand Growth (2x GDP) %
Per-capita Consumption of PE, PP and PVC (kg/person)
65
58
Brazil: 46
23 25 31
21 22
18 19 18 20
17
2002 2003 2004 2005 2006 2007 2008 2009 2010 USA Europe Japan China
Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE. 7
8. Intangible value: the reasons behind strong
relationship with customers in Brazil
Customers’ relationship (development Export Plastic Program
of solutions)
Export
Plastic Chain Competitiveness
Market New applications for plastic / Incentives Forum
applications with environmental
Development benefits
Pro-plastic (with BNDES)
Technological innovation and
sustainability solutions Chain Industry technological agenda (with
Capacity MDIC and ABDI)
Fiscal Isonomy Qualified labor for third generation
Domestic
Actions against tax distortions
Market Plastic image
Program related to transformed
Defense goods quality / standardization Environmental impact studies –
plastic x Ersatz (life cycle)
Chain financing (R$3 billion) “I’m green” seal
Sustainability
Creation of FIDCs oriented to & Marketing Brasilplast: fair as communication
Fiscal customers channel for plastic image promotion
campaigns
Support Chemical Industry National Agenda
(sets forth the allocation of resources Formula 1 campaign: green plastic,
for investments in capital goods in recycling, wood plastic
the plastic transformed goods
industry) Mechanical recycling
8
9. Ownership Structure
Leveraging relationship with Petrobras
- World leader in
- Conglomerate with Minority
E&P in deep
investments in Shareholders
waters;
different sectors;
- Present in the
- More than 30-years
industry as
in the petrochemical
50.1% / 38.2% 0.0% / 5.9% 2.8% / 20.1% 47.1% / 35.8% investor, supplier
industry.
Voting Shares / Total Shares and customer;
- Investment Grade
by all 3 Rating
Agencies.
• Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned
Governance
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.
Source: Braskem 9
10. Raw material matrix
Diversification to compete globally
Raw Material Profile* (2010) Current Braskem Post- Mexico Project
3% 3%
8% 13%
37% 30% 13%
18%
Implementation of 24%
17% Project Pipeline
17%
92%
56% 69% 58% 15%
46% 67%
14%
Quattor Braskem Braskem Braskem balanced and diversified supply of raw materials
More
America after
Liquid (2) Refinery propylene Gas (1)
Competitive gas price vs. international reference prices
acquisitions
Ethanol
Propylene Naphtha / Condensate
USG reference with competitive prices in 70% of US 66% of naphtha supplied by Petrobras with competitive
supply price formula – based on international price
34% direct imports from various international suppliers
Gas
100% Petrobras supply with competitive prices versus
international prices
Ethanol
(1) Ethane, Propane and LHR (FCC off gas)
(2) Naphtha and condensate *Based on resin-production capacity. Sunoco buys propylene directly 10
11. Innovation & Technology
Innovation and Technology Center
Strengthening the value chain competitiveness
Structured resource base to support customer needs:
Over R$ 330 million in R&D assets
PP
More than 190 researchers Coffee Bags
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
PE
Rotomolded Manhole
PE
Innovation pipeline
BIOPOLYMERS PP
NPV: ~US$ 510 million
PVC
PVC Doors
11
12. Innovation & Technology
PP - NEW PP WASHING MACHINES PP - LOW VOC AUTOMOTIVE GRADE
Partners: Electrolux and Colormaq Partner: Lyondell-Basell Brazil
Innovation: Steel and PET replacement in Innovation: High performance grade for
washing machine body part (lower cost and automotive compounds.
weight) Target Sales: 4 kton/year
Target Sales: 6 kton/year
PE - LARGE ROTOMOLDED WATER TANKS PE - GRAIN BAGS
Partner: Fortlev Partner: Pacifil
Innovation: Fiberglass tank replacement Innovation: Lower cost and faster installation
Target Sales: 32 kton/year with flexible silos for grain storage
Target Sales: 5 kton/year
PVC - PVC WINDOWS PVC - PVC ROOF TILES (To be launched)
PP
Partners: Claris, Primeira Linha, Veka and Partners: Not disclosed now due to secrecy
Weiku agreement
Innovation: Increase PVC window profile Innovation: Asbestos and Clay roof tiles
application in the market replacement
Target Sales: 2 kton/year Target Sales: 120 kton/year
12
13. Synergies from Quattor acquisition totaling
R$377 million in EBITDA for 2011
2011 EBITDA*: R$377 million 2012 EBITDA*: R$495 million
R$ milhões
R$ million R$ million
R$ milhões
61 59
87
82
377 495
350
234
Industrial
Industrial Logistics
Logística Supply
Suprimentos EBITDA Synergies
EBITDA Sinergias Industrial
Industrial Logistics
Logística Supply
Suprimentos EBITDA Synergies
EBITDA Sinergias
Identification of new opportunities, efficient and rapid implementation of initiatives to
capture synergies
Integrated planning for industrial units Additional R$490 million in NPV
Centralized maintenance strategy of synergies that do not affect
EBITDA – financial, fiscal, etc
Optimization of freight and gains in distribution and storage
Joint purchase of materials for industrial operations
Source: Braskem * Annual and Recurring 13
14. Outlook on the global petrochemical industry
Ethylene: Operating rate 2010
MM ton Industry in 2010
20 94 Operating rates decreased in 4Q10 driven by the
91 90
89 88 rigorous winter in the Northern hemisphere and
86 84 *
15 84 82 83 operational problems in Europe and Middle East
81 80
78
74 Competitive cost base allowed the US to
10
70 operate at higher rates than other regions
throughout 2010
5 60
Global operating rate at 83.5% in 2010, 3.1 p.p.
over previous forecast
0 50
Europe N. America Asia M. East World Braskem Demand grew by 6.7%, or 7.4 million ton.
More than 50% higher than previous forecast
Capacity 4Q Operating rate 4Q10 (%) Operating rate 3Q10 (%)
Global Scenario
New capacity additions can lead to the closing
Ethylene: Supply and Demand Balance
down of non competitive assets, especially in
MM ton Europe and Asia (Japan)
200 90.7 91.3
86.3
88.7 No significant expected change in ME
150 83.5 83.9 operating rate – structural problems in Iranian
plants
100 High volatility in oil prices boosts naphtha
prices. Prices of resins and basic petrochemicals
50
follow this trend
0 Expectation of improvement in the industry
2010 2011e 2012e 2013e 2014e 2015e profitability as of 2H11
Capacity Demand Operating Rate (%)
Source: CMAI, Parpinelli Tecnon * Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days. 14
15. Demand growth shall overcome new capacity
additions
Ethylene
Demand
6.8%
6.7%
Capacity 6.7%
5.2%
4.5% 4.4% 4.3% CAGR 10-15
(MM ton) 3.4% 4.4%
8.4% 5.2% 4.5% 4.4%
4.3% 4.0%
3.4%
6,521 3.2%
2.3% 2.6% Supply
3.3% 2.1%
2.6% 2.3% 2.5% 6,090
Asia
4,514
2.1%
CAGR 10-15
Africa 6,521
9,010 2,805
6,090
2.8%
Asia
Middle East
2010 2011 2012 2013
3,216 3,423
2014 2015
4,514 3,814
3,229 400 3,417
Africa
Europe
9,010 2,805
Middle East 2010 2011 2,652
2012
3,423 2013 2,545
2014 2015
Americas 468 3,216
1,816 3,814 2,462
3,229 3,774 400 3,417
Europe
Closures 2,067 529 Demand Growth % 490
1,200 Supply Growth %
962 550
743 2,652 2,545 375
Americas
Postponed/Delayed 468 1,816 (699) (150) 2,462
(1,282) (1,227) 3,774
Closures 2,067 529 1,200 490
Supply Growth % 743 962 550
375
Postponed/Delayed (1,282) (699) (150)
Demand Growth % 2010 (1,227)
2011 2012 2013 2014 2015
-19% Delayed
2010 2011 2012 2013 2014 2015
-19% Delayed
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
Source: CMAI, March/2011 15
17. Agenda
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Recent financial performance
Final considerations
17
18. Strategic Vision
“BECOME THE GLOBAL
SUSTAINABLE CHEMICAL
LEADER, INNOVATING
FOR BETTER SERVE THE
PEOPLE”.
18
19. 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 new
projects in Brazil
Internationalization
Latin America and US as good alternatives for future competitive feedstock
supply
Partnerships with local players to develop local industry at competitive gas
prices
Sustainable Chemicals
Initial focus in renewable raw materials with no changes for customers in
terms of investments and applications
Partnerships to enter other avenues in green products
19
20. Brazil – adding value to the Vinyls chain
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) and
from 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)
1,119
982 950
857 31%
748 34% 26%
19%
17% Imports New Projects
Domestic Sales
Industrial Assets
2006 2007 2008 2009 2010
Source: Braskem 20
21. Brazil – adding value to the cracker chain
Polybutadiene SBR SSBR NBR TR
Styrene Butadiene Rubber Solution SBR Acrylonitrile Butadiene Thermoplastic Rubber
Butadiene Rubber
Operational start-up : 2013
Capacity: 100 kton/y
Location: Triunfo (Rio Grande do Sul)
Investments of R$300 million
Raw material for the manufacture of rubber tires
and synthetic rubbers
Attractiveness worldwide
Tighter market balance sustaining higher prices
Light feedstock expansion limiting the New Projects
availability of C4 supply
Industrial Assets
Continuous consumption growth
Higher demand from emerging markets
Recovery of the mature markets
Source: Braskem 21
22. Brazil – potential capacity expansion projects
2013 - 2015 2016 - 2018
~ 130 kton/y through DBNs
adding LDPE, HDPE and
PE LLDPE in Bahia, Rio de
Janeiro and São Paulo
(southeast of Brazil)
~ 100kton/y through DBNs in COMPERJ – from 1.1 to 1.5
Rio Grande do Sul (south of million tons of ethylene
Brazil) and São Paulo
PP (southeast of Brazil) or 300
kton/y trhrough a Greenfield
in Bahia (northeast of Brazil)
Greenfield adding ~250
PVC kton/y in the northeast of
Brazil
22
23. Sustainable Chemicals
Development
Green PP
Green PE 2013 Partnerships for the
2010 – started development of competitive
Innovation in bioplastic technologies
up in 4Q10
market
Successful track record for Production integrated with
Braskem becomes implementing projects: green propylene Cooperation agreement with
a global leader in term and costs Capture of 2.3t CO2/t PP Cenpes (Petrobras Research
biopolymers Center)
Capture of 2.5t CO2/t PE
Partnership with Development of other cracks
Customers streams to sustainable
chemicals
PE integrated project study
23
24. Access to competitive feedstock
The Ethylene XXI Project (Mexico)
Mexico: Ethylene XXI Project
Operational start-up: January 2015
JV between Braskem (65%) and the Mexican
group IDESA (35%) for the purchase of ethane
from PEMEX
Integrated project: 1 Mton/y of ethylene and
1 Mton/y of PE
Fixed Investment: US$ 2.5 billion over 5 years
(project finance – 70% debt/30% equity)
Expected NPV over US$ 3 billion
Strategic partnership with Ineos and Lyondell
Basell for PE plants technologies and with
Technip for the cracker
Financial Advisor hired: Sumitomo Bank
Structuring of the participation of ECAs and
MLAs1 – already received over US$ 6 billion in
letters of interest
1 Export Credit Agency (ECA) and Multilateral Agency (MLA)
Source: Braskem 24
26. 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
Converters Profile
Big
4% Medium
12%
Micros Small
60% 24%
Total: 3,500 Converters
26
27. Unique pipeline of growth in the Americas
Consolidated Project Pipeline
Brownfield/Greenfield expansion
projects in Brazil: PE and PP assets
Comperj – integrated complex in Rio
Ethylene XXI - Mexico de Janeiro (southeast Brazil)
(+ 1,000 kton/y ethylene New Biopolymers Plants in Brazil –
and + 1,000 kton/y PE) integrated project (1st and 2nd
Green PE – already Butadiene (100 kton/y) generation)
operational
(+ 200 kton/y ethylene) Green PP Peru(+ 600 to 1,000 kton/y
(+ 30 kton/y ethylene/ ethylene/PE)
PVC Expansion propylene)
(+ 200 kton/y) Venezuela – under revaluation
2010 - 2012 2013 - 2015 Projects under evaluation
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
Source: Braskem 27
28. Agenda
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Recent financial performance
Final considerations
28
29. 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
30. 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
31. 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
32. Agenda
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Recent financial performance
Final considerations
32
33. Main numbers for 2010 x 2009
Net Revenue (R$ million) Net Revenue (US$ million) Net Income (R$ million)
+23% +36% +375%
27.829 1,889
15.833
22.647
11.620
398
2009 2010 2009 2010 2009 2010
Exports 23% 26% 23% 26%
EBITDA (R$ million) EBITDA (US$ million) Dividends (R$ million) *
+27% +139%
+41%
4.055 666
2.308
3.181
1.638
278
2009 2010 2009 2010 2007 2010
% of Net
51% 40%
Income
* 2007: Last dividend distribution 33
34. Capacity utilization rates were positively impacted by
the improvement of Quattor’s assets
Braskem consolidated operating rates %
Quattor - Ethylene
Ethylene Polyethylene Polypropylene PVC
89% 94%
94% 93% 83%
86% 87% 83% 85% 71%
78% 80% 63%
4Q09 1Q10 2Q10 3Q10 4Q10
2009 2010 2009 2010 2009 2010 2009 2010
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
Source: Braskem *2009 data does not include Quattor expansion of 200 kton 34
35. Value added products and potential market growth
are key differentiators of value creation
Braskem’s Performance – 2009 Vs. 2010 (Thousand tons)
Braskem Origin of Imports in 2010
(PE, PP and PVC)
+11% 3,413
3,072
Others
2009 2010 14%
Europe
10% North America
Braskem’s Sales Profile – 2010 Asia
29%
10%
OTHERS Mexico Colombia Argentina
1% 15%
AGRIBUSINESS 21%
10%
INDUSTRIAL 4% FOOD
29% PACKAGING
4%
AUTOMOTIVE 6%
RETAIL 7% Americas account for 67% of imports
9%
18%
Imports represented 26% of the
HYGIENE AND
13%
domestic market
CLEANING CONSTRUCTION
CONSUMER
GOODS
Source: Abiquim, Braskem 35
36. Value creation through acquisitions
Quattor’s EBITDA Performance (R$ million)
+19% 361
+41%
302
984
214 +78%
+99%
554
107
1Q10 2Q10 3Q10 4Q10 2009 2010
Braskem America’s EBITDA Performance (US$ million)
37 114
-30% +73%
32
26*
22 23 66
2009 2010
1Q10 2Q10 3Q10 4Q10
*Excluding the non-recurring positive ajustment in the
inventory booking criteria of R$ 10 MM.
36
37. Indebtedness and leverage decrease
Dec 2009 Dec 2010
Gross Debt: R$ 17,637 MM -28% Gross Debt: R$ 12,728 MM
Net Debt: R$ 11,417 MM -14% Net Debt: R$ 9,839 MM
EBITDA: R$ 3,181 MM EBITDA: R$ 4,055 MM
LEVERAGE
Average Debt Term: 6.6 years Average Debt Term: 12.5 years
Gross Debt/EBITDA: 5.54x Gross Debt/EBITDA: 3.14x
Net Debt/EBITDA: 3.59x -32% Net Debt/EBITDA: 2.43x
Change
Million of R$ 2010 2009 (%)
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%
Non-recurring Financial Expenses: R$464 million in 2010
Source: Braskem 37
38. Debt reduction and lengthening the average maturity
of debt
DEBT PROFILE
Amortization Schedule(1) 2010
(million of R$) Foreing
12/31/2010 Entities
1%
Gov.
Entities
Capital 26%
583*
Market
20% 38%
393
13% 14%
13%
10% 11%
10% 2,594
2,889 1,733 1,820 8%
2,496 1,694 1,360
1,245 1,073 1,244 Banks
35%
2009
Foreing
12/31/10 2011 2012 2013 2014 2015 2016/ 2018/ 2020
Entities
Cash 2017 2019 onwards
5%
(1) Does not
include transaction costs
Invested in R$ Capital
*US$350 million of Stand by Gov.
Invested in US$ Market Entities
21% 22%
Issue of US$450 million in perpetual bonds, project finance prepayment and
others financing operations lengthened the average debt term to 12.5 years
Corporate Credit Rating – Global Scale
Agency Rating Outlook Reviewed in
Banks
S&P BBB- Stable 03/30/2011 52%
Moody’s Baa3 Stable 03/31/2011 More balanced source of
funds.
Fitch Ratings BB+ Positive 01/11/2011
38
39. Total Investment in 2011 is estimated at R$1.6 billion
Investments
Investimentos
(R$ million
R$ milhões)
1,777 1,644
373 Maintenance Shutdown
391
HSE For 2011, capex is estimated at R$
127
85 142 Productivity 1.6 billion, out of which
211 94
Capacity Increase / PVC Alagoas approximately 30% destined to
283 407 Equipment Replacement capacity expansion projects, 20% to
6 Quantiq scheduled maintenance shutdowns,
343 243 Green PE and the remaining to operational
47 89 Mexico investments.
301 278 Others
2010 2011e
Source: Braskem 39
40. Agenda
Braskem
A global player in the petrochemical industry
Vision and Growth pipeline
Main goals and priorities by business segment
Recent financial performance
Final considerations
40
41. 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 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
41