2. Forward-looking Statements
This presentation contains forward-looking statements. These statements do not
represent historical fact, but rather reflect the beliefs and expectations of
Braskem’s management. The words “anticipate”, “wish”, “expect”, “estimate”,
“intend”, “forecast”, “plan”, “predict”, “project”, “target” and similar words
are intended to identify these statements. Although Braskem believes that the
expectations and assumptions reflected in these forward-looking statements are
reasonable and based on information currently available to management,
Braskem cannot guarantee future results or events.
The forward-looking statements in this presentation are valid only on the date
they are made (June 30, 2009) 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. Global Scenario
• Oil price influenced by reduced supply and financial market movements
• Petrochemical prices recovery in the international market:
• Asian demand acceleration
• Supply restriction in the region
• Stronger demand for gasoline (US driving season) and aromatics
• Delays in the startup of new capacities in the Middle East
• 12 MM tons of ethylene capacity lost in USA and Europe in 2009
• Financial sector upturn is unsure
• Downturn cycle can last until 2011
3
4. Regional Scenario
• Braskem plants operating at full capacity
• Braskem’s Inventories at normal levels
• Increased demand for thermoplastic resins in the Brazilian market:
• Government incentives for automotive and white goods
• Agribusiness and construction industries signaling a recovery in 2H09
• Reduced volumes of imported resins and manufactured goods
• Inventories levels in the chain are still low
• Sales volume recovery for Mercosur, Bolivia and Andean countries
4
5. 2Q09 Highlights
Operating Performance:
. Net revenue reaches R$ 3.7 billion, 13% up on 1Q09, with sales recovery in the
domestic market and prices retrieval in the exports market
. EBITDA reaches R$ 566 million, with 15.3% margin
. Net income grows R$ 1,146 million over 1Q09: exchange appreciation and upturn
in profitability
Strategic Actions:
. Merger of Petroquímica Triunfo
. Startup of ETBE plant in the Camaçari Petrochemical Complex: + 210 kt
Achievements:
. Raising of R$ 250 million through a receivables-backed investment fund (FIDC) with
weighted remuneration of CDI + 1.85% p.a.
. SG&A reduction reaches R$ 50 million in the first six months of 2009
5
7. EBITDA
Higher basic petrochemicals prices and sales volume
overcome exchange appreciation and raw material cost increase
R$ million
FX Impact
247 on Costs
FX Impact
on Revenue (334)
539 65
( 232 )
( 96 ) 566
457 ( 87 )
( 57 ) ( 24 )
EBITDA Price Volume Raw Others FX Other Costs + EBITDA
1Q09 Material PIS/ Variable SG&A 2Q09
COFINS Costs
7
Source: Braskem
8. EBITDA
Positive FX impact, COGS gains and increased sales volume
offset lower resin prices
R$ million
FX Impact
1,171
on Revenue
FX Impact
on Costs (890)
280 111 36 23
407
1,661
557 566
(2,509)
EBITDA Raw Other FX Volume Others Costs + Price EBITDA
2Q08 material Variable SG&A 2Q09
Costs
8
Source: Braskem
9. Comfortable cash position, covering
over 2 years of debt amortization
R$ Million (06/30/09)
Gross Debt:
Debt: 10,583 Net Debt / Ebitda (x) R$ Net Debt / Ebitda (x) US$
Net Debt:
Debt: 7,347
Average Term: 10.1 years
Term: 3.97 -20% 6%
3.16 3.25 3.43
67% of the debt are pegged to the USD
3,236
Mar 09 Jun 09 Mar 09 Jun 09
1,468
PFICO 15%
13% 13%
12%
11%
11% 10%
9%
1,768 610 1,617 6%
1,326 1,288 1,209 1,372
1,091 976
526 615
06/30/09 2009 2010 2011 2012 2013 2014/ 2016/ 2018/ 2020 onwards
2015 2017 2019
In US$
Value related to the loan granted by a Petrobras subsidiary for the
In R$ delisting of Copesul, due in October 2009.
Source: Braskem 9
10. Focus
Continuous strengthening of long-term relationship with Clients
Priority over financial health and liquidity
Productivity Program: cost reduction
Support the sustainability of the Brazilian petrochemical chain
Construction of the Green PE plant
Projects in Venezuela
Analysis of opportunities arising from crisis: selective
acquisitions in North America
Operational renewal: over 500 employees by 2011
Greater operational and financial strength
10