Teleconferência de resultados 1 t03 (versão inglês)
Transcript of Teleconferência de resultados 1 t03 (versão inglês)
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May, 15 2003
A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company
First Quarter 2003 EarningsInternational Conference-Call
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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", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks.
Known risks include uncertainties which include, but are not limited to price and product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations, regularity in the sourcing of raw materials and inoperations, among others. This presentation is based on events up to May 15, 2003 and Braskem is not liable to update the contents in the light of new information and/or future events.
Braskem takes no responsibility for transactions or investment decisions made on the basis of information contained in this presentation.
Disclaimer – forward looking statements :
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3,17 2,57
0,001,00
2,003,004,00
Dec 2002 Mar 2003
6.815
6.365
6.0006.2006.4006.6006.8007.000
Dec 2002 Mar 2003
Braskem – First Quarter 2003 Highlights:
1.230
2.292
0
1.000
2.000
3.000
1Q02 1Q93
238
450
0
200
400
600
1Q02 1Q03
251
579
0
200
400
600
1Q02 1Q03
OCG (R$ million)
EBITDA (R$ million)
Net Debt / OCG (LTM*)
Net Revenue (R$ million)
Net Debt (R$ million)
+86% +89%
+130%
-19%
* Last Twelve Months
R$(450)MM
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Braskem – Simplified structure accelerating the capture of synergies:
29.6% 29.6% 35.0% 34.7%
66.7% 42.6% 69.4% 43.2%
POLIALDEN
% Voting stake
% Total stake
* Gains on a recurring, annulized basis
208
Mar/03
75
Dec/02Sep/02
53
Synergies*:
(R$ million)
Goal = 330
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Braskem - EBITDA Growth (R$ million):
(*) Extraordinary items
1Q02 2Q02 3Q02 4Q02 1Q03
367
315
238
450780*
1,195
415
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International Price Trend (Naphtha vs. PEBD):
Naphtha & PEBD Price TrendIndexed as of January 2, 2003
40
60
80
100
120
140
NaphthaPEBD
5/12/2003
90
70
(% Indexed)
Source: Bloomberg
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Braskem – Operating Performance - Output (tons):
MAIN PRODUCTS 1Q03 (A)
1Q02 (B)
Chg % (A)/(B)
4Q02
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
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Braskem – Market – Sales Volume (tons):
* Of this amount, 102,000 tons (45%) represent sales to Braskem companies
MAIN PRODUCTS 1Q03 (A)
1Q02 (B)
Chg % (A)/(B)
4Q02
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
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Braskem – Exports in 1Q03:
94
137
1Q02 1Q03
+46%
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(US$ MM)
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Braskem – Income Statement Review:R$ million
Chg. (%) (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 44 714 836
Net Financial Result (87) (217) (60) 108
Net Profit (Loss) 131 (164) - 1,042
Earnings per Share 38.73 (26.26) - 311.48
1Q03 (A)
1Q02 (B)
4Q02
(* Operating Profit = Operating Income – Net Financial result)
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Braskem – Net Revenue for Main Products (R$ million):
MAIN PRODUCTS1Q03
(A)1Q02
(B)Chg. % (A)/(B)
4Q02
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
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Braskem – Cost of Goods Sold (1Q03):
COGS 1Q03:
R$ 1.823 billion
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1Q02
238
450
AveragePrice
SG&A
970 (706)
Fixed &Variable
costs
(12)
(59)
OtherOperating
Exp/Income
Braskem – 1Q03 x 1Q02 EBITDA comparison (R$ million):
19
SalesVolume
1Q03
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Braskem – EBITDA consistent growth:
Source: Thomson Financial Investor Relations and Braskem
(*) Average EBITDA Margin of Basf, Dow, Reliance, DuPont, Solvay, Lyondell, Eastman and Georgia Gulf, basedupon disclosed 1Q03 earnings data.
EBITDA margin – Sector
Braskem
Industry Average (*)
10%
13%
15%
18%
20%
23%
25%
1Q03 1Q02
30%
3%
5%
8%
12%15%
20% 19%
1Q02 2Q02 3Q02 4Q02 1Q03
367315238
780
1,195
450
415
EBITDA (R$ million)
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Braskem – Net Debt Reduction:
Debt reduction drivers
� Strong operating cash generation in 1Q03: R$ 579 million;
� Synergies captured through integration: R$208 million on an annualized & recurring basis.
6.815
6.365
31/12/2002 31/03/2003
(R$ million)
∆∆∆∆ = - 450
∆∆∆∆ = - 6,6%
�Net Debt / OCG Ratio:
�31/12/2002: 3.17
�31/03/2003: 2.57
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Braskem – Consolidated Debt (Mar/03):
Breakdown by Indexation
15%
9%
69%
5%TJLP
CDI
US$
IGP- M
Trade Finance~34%
Amortization Schedule
Short Term includes:• R$ 1.294 million in trade finance obligations• ~ R$ 612 million in working capital financing
0%
10%
20%
30%
40%
50%
30%
2004 2005 2006 2007
19%15%
28%
Apr/03 toDec/03
(Gross Debt)
8%
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Braskem : Share price performace in 2003
156
111
202
60
80
100
120
140
160
180
200
jan-03 fev-03 mar-03 abr-03 mai-03
BRKM5
Ibovespa
BAK (ADR)
As of closing on May 8, 2003
Indexed as of Jan. 2, 2003
Average daily trading volume ~_R$ 873,000
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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
� Already a Bovespa’s Level 1 Company; shall qualify for Level 2 in 2 years
� Offering 100% tag-along rights for all shareholders
� High potential for shareholder value creation
Braskem: A world-class Brazilian petrochemical company !Braskem: A world-class Brazilian petrochemical company !
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May, 15 2003
A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company
First Quarter 2003 EarningsInternational Conference-Call