Braskem S.A. · BMFBOVESPA:BRKM3
Braskem — Q1 2003 Earnings Presentation
19 slides from Braskem's earnings presentation, May 15, 2003
Slide 1: First Quarter 2003 Earnings International Conference-Call
First Quarter 2003 Earnings International Conference-Call A A World World Class Class Brazilian Brazilian Petrochemical Petrochemical Company Company May, 15 2003
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", “fore
Slide 3: First Quarter 2003 Highlights
Braskem – First Quarter 2003 Highlights: Net Revenue (R$ million) EBITDA (R$ million) +86% 2.292 +89% 450 3.000 600 1.230 2.000 238 400 1.000 200 0 0 1Q02 1Q93 OCG (R$ million) 1Q02 1Q03 579 +130% 600 251 400 200 0 1Q02 1Q03 Net Debt (R$ million) Net Debt / OCG (LTM*) 6.815 R$(450)MM -19% 3,17 2,57
Slide 4: Synergies
Braskem – Simplified structure accelerating the capture of synergies: 66.7% 42.6% 69.4% 43.2% 29.6% 29.6% 35.0% 34.7% POLIALDEN % Voting stake Goal = 330 % Total stake 208 Synergies*: (R$ million) 75 53 Sep/02 Dec/02 Mar/03 * Gains on a recurring, annulized basis
Slide 5: EBITDA Growth (R$ million)
Braskem - EBITDA Growth (R$ million): 1,195 780* 450 367 315 238 415 1Q02 2Q02 3Q02 4Q02 1Q03 (*) Extraordinary items
Slide 6: Naphtha & PEBD Price Trend
International Price Trend (Naphtha vs. PEBD): (% Indexed) Naphtha & PEBD Price Trend Indexed as of January 2, 2003 140 120 100 90 80 Naphtha PEBD 70 60 40 5/12/2003 Source: Bloomberg
Slide 7: Operating Performance - Output (tons)
Braskem – Operating Performance - Output (tons): MAIN PRODUCTS 1Q03 1Q02 Chg % 4Q02 (A) (B) (A)/(B) ETHYLENE 229,165 224,769 2 285,436 THERMOPLASTICS - TOTAL 384,254 349,002 10 409,429 PP 107,533 92,531 16 110,745 PE 157,966 154,797 2 170,544 PVC 103,844 87,564 19 112,558
Slide 8: Market – Sales Volume (tons)
Braskem – Market – Sales Volume (tons): 1Q03 1Q02 Chg % 4Q02 MAIN PRODUCTS (A) (B) (A)/(B) ETHYLENE 230,251* 227,913 1 285,993 THERMOPLASTICS - TOTAL 401,098 376,139 7 388,925 PP 111,716 95,256 17 103,947 PE 164,563 163,712 1 165,948 PVC 110,679 103,602 7 101,898 * Of this amount, 102,000 tons (45%)
Slide 9: Exports in 1Q03
Braskem – Exports in 1Q03: (US$ MM) +46% 137 ! 94 ! "# $# # 1Q02 1Q03
Slide 10: Income Statement Review
Braskem – Income Statement Review: R$ million 1Q03 1Q02 Chg. (%) 4Q02 (A) (B) (A)/(B) Net Revenue 2,292 1,230 86 2,097 Cost of Goods Sold (1,823) (1,043) 75 (1,760) Gross Profit 469 186 152 337 Gross Margin (%) 20 15 33 16 EBITDA 450 238 89 1,164 EBITDA Margin (%) 20 19 5 56 Operating Profit * 358 4
Slide 11: Net Revenue for Main Products (R$ million)
Braskem – Net Revenue for Main Products (R$ million): 1Q03 1Q02 Chg. % 4Q02 MAIN PRODUCTS (A) (B) (A)/(B) ETHYLENE 233 115 103 241 TOTAL - THERMOPLASTICS 1,077 608 77 890 PP 317 162 96 238 PE 440 266 65 367 PVC 271 150 81 232
Slide 12: Cost of Goods Sold (1Q03)
Braskem – Cost of Goods Sold (1Q03): COGS 1Q03: R$ 1.823 billion ! ! "
Slide 13: 1Q03 x 1Q02 EBITDA comparison (R$ million)
Braskem – 1Q03 x 1Q02 EBITDA comparison (R$ million): 970 (706) (59) (12) 450 Fixed & Variable costs Other SG&A 19 Operating 238 Exp/Income Sales Average Volume Price 1Q02 1Q03
Slide 14: EBITDA consistent growth
Braskem – EBITDA consistent growth: EBITDA (R$ million) EBITDA margin – Sector Braskem 30% 25% Industry Average (*) 1,195 23% 20% 19% 20% 18% 15% 780 15% 12% 450 13% 315 367 10% 238 415 8% 5% 1Q02 2Q02 3Q02 4Q02 1Q03 3% 1Q03 1Q02 (*) Average EBITDA Margin of Basf, Dow, Reliance, DuPont, Solvay, Lyon
Slide 15: Net Debt Reduction
Braskem – Net Debt Reduction: Debt reduction drivers (R$ million) Strong operating cash generation ∆ = - 450 in 1Q03: R$ 579 million; 6.815 Synergies captured through 6.365 integration: R$208 million on an ∆ = - 6,6% annualized & recurring basis. Net Debt / OCG Ratio: 31/12/2002: 3.17 31/12/2002 31/
Slide 16: Consolidated Debt (Mar/03)
Braskem – Consolidated Debt (Mar/03): Breakdown by Indexation Amortization Schedule (Gross Debt) IGP- M TJLP 50% 5% 15% CDI 9% 40% 30% 30% Trade Finance 28% ~34% 20% 19% 15% 10% 8% 0% Apr/03 to 2004 2005 2006 2007 69% Dec/03 US$ Short Term includes: • R$ 1.294 million in trade finance obligations •
Slide 17: Share price performance in 2003
Braskem : Share price performace in 2003 As of closing on May 8, 2003 202 200 180 160 156 Average daily trading volume ~_R$ 873,000 140 BRKM5 Ibovespa BAK (ADR) 120 111 100 80 60 jan-03 fev-03 mar-03 abr-03 mai-03 Indexed as of Jan. 2, 2003
Slide 18: 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; OPP and Nitrocarbono incorporation completed Al
Slide 19: First Quarter 2003 Earnings International Conference-Call
First Quarter 2003 Earnings International Conference-Call A A World World Class Class Brazilian Brazilian Petrochemical Petrochemical Company Company May, 15 2003