1q08 results conference call...2009/12/01 · this presentation contains forward-looking...
TRANSCRIPT
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1Q08 Results Conference Call
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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 included in this presentation are valid only
on the date on which they are made (March 31, 2008), and the Company does
not undertake 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.
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• Brazilian resin market: +10%
• Growth in domestic resin sales: + 7%
• Domestic PVC Sales: + 13%
• Record-high quarterly PVC production: 130 Kton
• Reduction in fixed costs
• Annual and recurring gains from synergies
• R$ 77 MM in EBITDA
• R$ 59 MM in other additional gains
• Operational investments: R$ 242 MM
Highlights 1Q08 vs. 1Q07 Operating Performance
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1Q08 HighlightsConclusion of important strategic steps
• Operational startup of new Paulínia unit
• Cash inflow of R$252 million in April from sale of the
interest in Petroflex, with profit of R$116 million
• Consolidation of Brazil’s petrochemical sector
• Conclusion of the acquisition of the Ipiranga Group’s
petrochemical assets
• SEAE and SDE executive departments recommend to antitrust
authority CADE approval of the Investment Agreement between
Braskem and Petrobras
• Green Polymer Project
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Production growth with higher
operating reliability
PE PP PVC
1Q084Q07
ETHYLENE
93%
95%
Source: Braskem
Resin Production Kton
1Q07
86%
96%
Capacity Utilization %
RECORDS
Production in last 12
months of 2,827 Kton
Quarterly PVC production
of 130 Kton in 1Q08
1Q084Q071Q07 1Q084Q071Q07 1Q084Q071Q07
88% 89%91%
96% 96%96%94%
104%
92%
702
1Q084Q07
704
LTM1Q08
LTM 1Q07
2,7862,827
+1%
700
1Q07
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Braskem maintains leadership position in
robust domestic market: Demand +10%
Source: Braskem / Abiquim
Domestic Sales 1Q08 vs. 1Q07 % Resin Market Share 1Q08
+13%
+ 5 %+7%
+ 6%
+10%
PVCPPResin
BraskemPE
Brazilian
market*
Other
Imports
49%
22%
29%
*Domestic sales + Imports
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853
1Q07 1Q08Prices VolumeForeign Exchange
Source: Braskem
(195)
FX impact
on costs
FX impact
on revenue
Raw
Materials
(1,328)
1,220
(103)
Evolution of EBITDA Commercial strategy minimizes impacts from both higher Naphtha prices and exchange rate variation
583
665
(860)
Fixed
Costs/
SG&A
Other
108 28R$ million
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8
648
4Q07 1Q08Prices Fixed Costs/
SG&A
Volume Foreign
Exchange
Source: Braskem
(32)
FX impact
on costs
FX impact
on revenue
Raw
Materials
(263)
188
(136)
Other
Evolution of EBITDA Commercial strategy and reduction in fixed expenses minimize impacts from both higher Naphtha prices
583
83
(115)
11219
(89)
R$ million
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9Source: Braskem
Main Economic Performance Indicators
R$ million
Main Economic Indicators
Net Revenue
EBITDA
EBITDA Margin
Net Financial Result
Net income before minority interest
1Q08 1Q07 Chg.%
04,410
583
13.2 %
(200)
120
4,424
853
19.3 %
(104)
275
(32)
-6.1 p.p.
94
(56)
Net Income 83 127 (35)
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10
2016 /
2017
Source: Braskem
Lengthening of debt profileis a priority
in R$ million (3/31/08)
3/31/08
1,932
Gross Debt: 9,363
Net Debt: 7,431
2008
In US$
In R$
Cash and equivalents
2009 2010 2011 2012 /
2013
2014 /
2015
2018 /
2020Perpetual
13%
9%8%
6%7% 7%
US$ 73%
* Includes R$2.1 billion from bridge loan to acquire Ipiranga Group’s petrochemical assets
9%
Average Term:10 years
31%
974
10%
1,241
1,668*
767827 786
894
534 617 614
1,143
789
441*
2.56
Dec-07 Mar-08
1.93
+33%
Net Debt / EBITDA (x)
Pré-fixado
2%
Bridge
Loan
23%
US$
23% Trade
Finance
27%
CDI
17%
TJLP
8%
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• Positive macroeconomic outlook
• Brazil Investment Grade by Standard & Poor’s
• Growth in domestic resin market of 10%
• Industrial productivity leveraged by conclusion of stoppages
• Acceleration of synergy gains
• Fixed costs reduction
• Venezuela
• Conclusion of the economic and feasibility studies will allow investment decision
on PP plant
• Green Polymer
• Investment Decision in first half 2008
• Implementation of Investment Agreement with Petrobras
2008 Outlook
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1Q08 Results
Conference Call
Visit our website: www.braskem.com.br/ri