braskem day braskem america presentation - carlos fadigas
TRANSCRIPT
Braskem AmericaCarlos Fadigas
Braskem AmericaCarlos FadigasCarlos FadigasCarlos Fadigas
Agenda
�Main priorities and business overview
�Braskem America – key differentiators
�Questions
2
Agenda
�Main priorities and business overview
�Braskem America – key differentiators
�Questions
3
Strategic intent
Create further value, leveraging the current “beachhead”
� American assets are necessary for long term Clients relationship
� M&A - driven > “Smart” buy is fundamental
� Creative capital structures to further enable M&A
� New operating model
� Focus on Clients and product development
4
� Focus on Clients and product development
� Debottlenecks with return
� Technology exchange
� Empowerment and innovation, e.g., fixed-price contracts
� Value creation driven by
� Outlet for Latin American projects
� Revenue, cost and operational synergies
� Monomer + Polymer integration
� Improved conduct
Braskem America overview
Marcus Hook, PA and Neal,
WV plants are positioned
closer to a large consumer
market, with feedstock
advantage
NEAL, WV:210 Kton/year
Technology: Spheripol
MARCUS HOOK, PA:
350 Kton/year
Technology Unipol
5
La Porte, TX has long term
advantageous feedstock
contract
PHILADELPHIA, PA:
Headquarter
HOUSTON, TX:
390 Kton/year
Technology: Spheripol
PITTSBURGH, PA:Technology &
Innovation Center
Polypropylene market in the U.S.
North American PP CapacitiesMM lbs/year1 Locations2
3500 2
6
1) Source: CMAI Estimates for 2010
2) Source: CMAI, Townsend, Sunoco
0
500
1000
1500
2000
2500
3000
3500 2
23
133
3 1 31 1
x Number of plants
Non-Integrated Integrated
Polypropylene main segments
CompoundingDescription: Compounding production and automotive parts
producers.
Description: Compound producers for automotive industry,
automotive parts, PPR pipes and SPC application.
Fibers Description:Description: mono and multi-filament used in carpet,
upholstery, strapping, staple and geotextiles.
Nonwoven Description:Description: Hygiene disposables (diapers and pads) and
Durables (mattress, furniture).
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Film Description:Description: Bioriented Polypropylene Film for tapes,
packaging and labels.
Rigid
PackagingDescription:Description: food containers, cups, caps and closures
Nonwoven Description:Durables (mattress, furniture).
Houseware /
BucketsDescription:
Description: Houseware (food storage containers, garbage
can, knife handles) and buckets for food and chemical
industry.
Technology &
Innovation
Robert Nadin
External Affairs &
Business Development
Bruce Rubin
Finance & Strategy
Renato Monteiro
Shareholders
Organization structure
CEO Braskem America
Carlos Fadigas
People & Organization
and Communication
Ricardo Lyra
Christopher Bland
Manufacturing
Commercial & Supply
Mark Nikolich
Legal
Frederick Fisher
Shareholders
Clients
8
Agenda
�Main priorities and business overview
�Braskem America – key differentiators
�Questions
9
Innovation and technology
� Expanded resources to support client needs
� 30 Chemists/Engineers
� 10 PhD
� 5 MS
� 4 BS
� 11 Technicians� 11 Technicians
� Joint technology programs
� General areas of activity
� High Crystalline PP
� Impact copolymers
� HC/RCP platform
� Currently 25 +/- active US patents
10
Key technology advances
� Advanced Automotive grades
for demanding performance
and esthetic requirements
Source: Braskem
� New High Crystalline family
for flexible and rigid
packaging
� PP grade for new drainage
/sewage application
11
�Commercial� 20 opportunities identified
� 2 customers from Brazil that we are now supplying in the U.S.
� 3 UTEC customers that we are now also supplying PP
� 3 Distributors in Mexico
�Product development and exchange
Exchange opportunities
�Product development and exchange� Nonwoven, Rigid Packaging and Film market segments
�Join development� Rigid Packaging and Compounding
�Suppliers leverage
12
Net Revenue
($MM)
617
EBITDA
($MM)
40
59
Higher Performance
50%76%
1H09
351
1H10 1H09
40
1H10
13
Agenda
�Main priorities and business overview
�Braskem America – key differentiators
�Questions
14