Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Investor Presentation (February 2003)
14 slides from Braskem's investor presentation, Feb 13, 2003
Slide 1: BOVESPA Presentation
BOVESPA Presentation February 13, 2003 A A World World Class Class Brazilian Brazilian Petrochemical Petrochemical Company Company José Carlos Grubisich 1
Slide 2: Disclaimer – forward looking statements
Disclaimer – forward looking statements This presentation includes forward looking statements. Such information is not merely based on historical fact but also reflects management’s objectives and expectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan", "predict", “foreca
Slide 3: Braskem: Overview
Braskem: Overview - Overview of the Braskem Project; - Thermoplastics in Brazil; - Petrochemical Industry Situation; - Cash Flow and Debt Reduction. José Carlos Grubisich - CEO 3
Slide 4: Braskem's Commitment with the Market: Corporate Governance
Braskem’s Commitment with the Market: ! Corporate Governance ! New Bylaws ! 100% tag-along for all shareholders ! New Conduct Code ! Level 1 - Bovespa ! Disclosure Policy directed to the Market ! Stock Trading Policy ! Timetable of 2003 Events has already been set up ! Tender Offer - Nitrocarbono 4
Slide 5: Braskem: 181 days later ...
Braskem: 181 days later ... 29.5% 29.5% 35.0% 30.9% Braskem:fully !! Braskem: fullyintegrated integratedoperations; operations; % voting capital - % total capital Nitrocarbono’stender !! Nitrocarbono’s tenderoffer offerof ofcommon common stocks; stocks; Note:Apart Apartfrom fromthe theassets assetss
Slide 6: Braskem – The leading petrochemical company in Latin America
Braskem – The leading petrochemical company in Latin America: 13 modern and competitive plants: Alagoas PVC PVC Camaçari Chlorine Chlorine Soda Soda São Paulo HDPE HDPE LLDPE LLDPE Petrochemical Aratu Aratu Petrochemical Caprolactam Caprolactam Port Port Triunfo Complex Complex Terminal Terminal Ass
Slide 7: Braskem – A "Catalyst" in the Petrochemical Sector
Braskem – A “Catalyst” in the Petrochemical Sector: A World Class Brazilian Petrochemical Company ! The creation of Braskem reiterates the advantages to the Brazilian petrochemical sector of an integrated business model, with competitive scale; ! Braskem established a new strategic dynamics in the s
Slide 8: An attractive market for its core business: Thermoplastics
Braskem – An attractive market for its core business: Thermoplastics 3,500 (PE,PP e PVC) 6% 3,200 CAGR*= 8% 3,102 3,014 3,000 2,829 2,653 2,529 2,500 2,276 2,135 Thousands of tons 2,000 1,811 1,596 1,500 1,313 1,419 1,274 1,000 500 0 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 * CAGR - Compo
Slide 9: Thermoplastics in Brazil – Elasticity has remained high
Thermoplastics in Brazil – Elasticity has remained high: Annual growth rate – Brazil % (1990 through 2002) 15 Thermoplastics’ CAGR*is 3.7 greater than GDP 11.7 10 7.7 6.5 6.1 PP PP 5 TP TP (thermoplastics) PE’s PE’s PVC 2.1 PVC GDP GDP 0 1990 - 2002 Source: Abiquim, 2002 CAGR * - Compound annual gro
Slide 10: Thermoplastics in Brazil - Potential growth
Thermoplastics in Brazil - Potential growth: Per Capita Consumption of Thermoplastics 60 Intensification in the use of plastics: replacement of traditional products USA 47 Korea 45 Eastern Europe Consumption (kg/inhabitant) Brazil 33 31 30 Mexico China 22 23 16 20 20 15 15 8 9 4.5 2.7 4 3.7 5 5 2.8
Slide 11: Braskem – Net Debt Reduction (2001/2002)
Braskem – Net Debt Reduction (2001/2002): US$ MM Initial Net Debt 2,500 REDUCTION FACTORS Final Net Debt 2,250 2,216 ! Strong Cash Generation in 2002; 2,000 ! Efficiency in the working capital 1,773 1,750 management efficiency; 1,500 ∆ = US$ 443 MM ! Synergies stemming from the 1,250 integration pro
Slide 12: Braskem – Short-term Debt Reduction (Set – Dec/02)
Braskem – Short-term Debt Reduction (Set – Dec/02): Short-term maturities In R$ MM Cash Flow in 2002 (estimated) > R$ 2 billion Base Sep - 02 Base Dec - 02 3,361 2,583 ∆ = 778 Braskem’s Net Debt 30/Sep/2002 31/Dec/2002 R$ 7,698 MM R$ 6,913 MM (*) Sep/02-Sep/03 - Dec/02-Dec/03* R$ USD * Unaudited 12
Slide 13: Braskem: An excellent investment opportunity!
Braskem : An excellent investment opportunity ! ! Leading thermoplastics producer in Latin America ! Integrated operations enable synergies to be captured ! Consolidated businesses and superior margins, with adjustment of capital structure already under way; ! Bovespa’s Level 1 corporate governance
Slide 14: BOVESPA Presentation
BOVESPA Presentation February 13, 2003 A A World World Class Class Brazilian Brazilian Petrochemical Petrochemical Company Company José Carlos Grubisich 14