braskem day braskem america presentation - carlos fadigas

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Braskem America Carlos Fadigas Braskem America Carlos Fadigas

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Page 1: Braskem day   braskem america presentation - carlos fadigas

Braskem AmericaCarlos Fadigas

Braskem AmericaCarlos FadigasCarlos FadigasCarlos Fadigas

Page 2: Braskem day   braskem america presentation - carlos fadigas

Agenda

�Main priorities and business overview

�Braskem America – key differentiators

�Questions

2

Page 3: Braskem day   braskem america presentation - carlos fadigas

Agenda

�Main priorities and business overview

�Braskem America – key differentiators

�Questions

3

Page 4: Braskem day   braskem america presentation - carlos fadigas

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

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� 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

Page 5: Braskem day   braskem america presentation - carlos fadigas

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

Page 6: Braskem day   braskem america presentation - carlos fadigas

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

Page 7: Braskem day   braskem america presentation - carlos fadigas

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.

Page 8: Braskem day   braskem america presentation - carlos fadigas

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

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Page 9: Braskem day   braskem america presentation - carlos fadigas

Agenda

�Main priorities and business overview

�Braskem America – key differentiators

�Questions

9

Page 10: Braskem day   braskem america presentation - carlos fadigas

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

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Page 11: Braskem day   braskem america presentation - carlos fadigas

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

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Page 12: Braskem day   braskem america presentation - carlos fadigas

�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

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Page 13: Braskem day   braskem america presentation - carlos fadigas

Net Revenue

($MM)

617

EBITDA

($MM)

40

59

Higher Performance

50%76%

1H09

351

1H10 1H09

40

1H10

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Page 14: Braskem day   braskem america presentation - carlos fadigas

Agenda

�Main priorities and business overview

�Braskem America – key differentiators

�Questions

14