4Q08 4Q08 EarningsEarnings
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2
ForwardForward--looking Statementslooking 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 (December 31, 2008) 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.
3
• Unprecedent financial crisis
• High volatility in the exchange rate, raw materials and resins prices
Market:
� Drop-off in international thermoplastic resin demand
� Destocking in the petrochemical chain due to credit restriction
� Impact in Brazil concentrated in agriculture and durable goods in 4Q08
� Brazil's thermoplastic resin market contracted by 16% in 4Q08
Operating Performance:
� Reduction in the plants capacity utilization rates starting in November
� Net revenue of R$ 4.1 billion in 4Q08, 18% lower than in 3Q08
� EBITDA of R$ 633 million with an EBITDA margin of 15.4%, positively impacted by
the effects from the adjustments introduced by law 11,638/07 in the amount of R$
74 million, not related to the period
4Q08 Highlights4Q08 Highlights
4
Real Depreciation:
� R$1.9 billion accounting impact on net liabilities pegged to the US dollar
� Increase in the producers competitiveness
� Reduction of resin imports in December
Strategic Actions:
� Approval for the construction of the green PE plant and obtainment of the
environmental license to build the facility. Agreement with Toyota Tsusho to sell
Green PE in Asia.
� Focusing on the cash position
4Q08 Highlights4Q08 Highlights
5
Destocking trend in the petrochemical chain Destocking trend in the petrochemical chain
limits growth in domestic market to 3% in 2008limits growth in domestic market to 3% in 2008
+7%+ 7%
+2%
- 3%
+3%
PVCPPBraskem ResinsPE
Domestic Sales 2008 x 2007Domestic Sales 2008 x 2007 %%
Others
Imports
Resin Market Share 2008Resin Market Share 2008
51%*51%*
23%
26%
Brazilian Market*
*Domestic Sale + Imports
Source: Braskem / Abiquim
* Braskem market share includes sales of PVC imported by the Company
6
683
3Q08 4Q08Raw Materials
Fixed Costs/ Others
Volume
538
633
1,487
(949)
(174)
EBITDA Lower resins prices and reduced volumes overcome the positive FX impact on revenues
EBITDA EBITDA Lower resins prices and reduced volumes overcome Lower resins prices and reduced volumes overcome the positive FX impact on revenues the positive FX impact on revenues
(848)
Price
426 9
R$ million
Exchange Rate
Source: Braskem
FX impact
on revenue
FX impact
on costs
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Financial Results reflect FX Financial Results reflect FX
variationvariation
R$ millionR$ million 4Q084Q08 3Q083Q08 4Q074Q07 20082008 20072007
Financial Result (2,275) (1,616) (137) (3,685) (367)
Expenses (2,731) (1,923) 329 (4,403) 211
Income 456 308 (466) 719 (578)
FX Variation (1,872) (1,351) 146 (2,629) 798
Loss (2,290) (1,618) 675 (3,173) 1,607
Gain 418 267 (528) 544 (809)
FX Rate - EOP 2.34 1.91 1.77 2.34 1.77
FX Variation 22.1% 20.3% -3.7% 31.9% -17.2%
Source: Braskem
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2016 /2017
Source: Braskem
ShortShort--term debt well managed and longterm debt well managed and long--
term debt well distributed with an term debt well distributed with an
average term of 11 yearsaverage term of 11 years
R$ million (12/31/08)
12/31/08
2,960
In US$
In R$
Cash and Equivalents
2009 2010 2011 2013 2014 /2015
2018 /2019
2020 onwards
8%8%
11%11%12%12%
6%6%
13%13%
10%10%11%11%
18%18%
1,4081,408
9429421,3681,368 1,4021,402 1,3451,345
713713
1,6421,642
1,1691,169
1,9011,901
1,0591,059
2.89
Sep08 Dec08
3.06
- 6%
Gross Debt: 11,986Gross Debt: 11,986
Net Debt: 9,028Net Debt: 9,028
Average Term: 10.9 yearsAverage Term: 10.9 years
74% of the debt are pegged to the USD74% of the debt are pegged to the USD
Net Debt / Net Debt / EbitdaEbitda (x) US$(x) US$
2012
11%11%
1,2591,259
3.73
Sep08 Dec08
3.42
9%
Net Debt / Ebitda (x) R$Net Debt / Ebitda (x) R$
738738
Value related to the loan granted by a Petrobras subsidiary for the delisting of Copesul, due in October 2009
9
Net Debt
Dec07
InterestPPSA
ConsolidationEbitda
Net debt increases by US$500 million on investments of US$1.3 billionNet debt increases by US$500 million on Net debt increases by US$500 million on investments of US$1.3 billioninvestments of US$1.3 billion
Dividends
US$ million
Investmentsdisbursements
Source: Braskem
Net Debt
Dec08
Working Capital
FX / MV
3,350 1,297
(1,325)
337355175
3,864
(271)(54)
2,230
Net Debt
Dec08
10
Focus on priority investment projects Focus on priority investment projects
R$ million
Capacity increases /Petroquímica Paulínia
HSE
Technology
Equipment Replacement
Productivity
Quality / Others
Information System
Maintenance
Quality / Others
Information System
HSE
Technology
Productivity
Maintenance
Capacity increases / Green PE
Equipment Replacement161
238
2,279
2008
45
195
91
202
407
55
885Investments in Equity Stake (Ipiranga Group/Politeno)
203
213
909
2009
37
172
1474
182
14
Source: Braskem
11
ShortShort--term prioritiesterm priorities
� Focus on financial strength and liquidity
� Acceleration of the capture of synergies from the IPQ/CPS
acquisition
� Focus on maintaining operational profitability
� Recovery of plants capacity utilization rates
� Naphtha: conclusion of the new contract with Petrobras
� Green PE Project: construction in progress
� Assessment of growth opportunities during the crisis
Greater operational and financial strengthGreater operational and financial strength
4Q08 4Q08 EarningsEarnings
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