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Investor Presentaiton

2016 Braskem | Annual Report 39 BRL 5.6 BILLION is the net revenue from exports, up 13% from 2015. Results by Operational Segment in Brazil G4-EC1 The result of Braskem in Brazil is composed of the following segments: Basic Petrochemicals, Polyolefins, Vinyls, and Chemical Distribution. 1. BASIC PETROCHEMICALS Production in 2016 was 8.5 million tons, 3% higher than 2015 and a Company historical record, while the average utilization rate in the year was 92%, an increase of 3 p.p. compared to 2015, highlighting the petrochemical plants of São Paulo, Rio Grande do Sul, and Rio de Janeiro. The Petrochemical Plant of Rio de Janeiro also stands out, due to the greater supply of ethane raw material, with a record utilization rate. The segment's net sales revenue in the Brazilian market reached BRL 19.5 billion, a 1% growth over the previous year, driven by greater sales volume of the main basic petrochemicals to third parties, especially the redirection of sales of gasoline for the domestic market, showing a growth of 66% compared to the previous year. The volume of export sales was impacted mainly by the replacement of the exported volume of propylene for supply to the Client in the acrylic complex in Bahia and by the higher volume of transfer to the Polyolefins segment for PP production. The result was 705 kton, 7% less than the volume recorded in 2015, which was partially compensated the increase in benzene and butadiene exports. by Net revenue for exports was BRL 5.6 billion, up 13% from that in 2015, due to the higher average exchange rate between 2016 and 2015, in addition to better prices of some basic petrochemicals in the international market, especially butadiene. STRUCTURE OF THE BASIC PETROCHEMICAL SEGMENT The Basic Petrochemicals segment owns and operates four petrochemical complexes in Brazil (Camaçari, Triunfo, São Paulo, and Rio de Janeiro), where olefins, aromatics, and utilities are produced. The total annual ethylene production capacity of these industrial units is 3,952 kton, approximately 78% of which is naphtha-based, 16% is gas based, and the rest is ethanol-based. Of the total ethylene produced by the Basic Petrochemicals units, nearly 80% is transferred for consumption in the Company's Polyolefins and Vinyls units. The segment's annual propylene production capacity totals 1,585 kton and approximately 65% is transferred for consumption in the Company's Polyolefins segment. FINANCIAL OVERVIEW (BRL MILLION) BASIC PETROCHEMICALS Net Sales Revenue Cost of Goods Sold Gross Income 4T16 3T16 4T15 (A) (B) (C) VAR. VAR. 2016 (A)/(B) (A)/(C) (D) 2015 VAR. (E) (D)/(E) 6,548 6,409 6,297 2% 4% 25,063 24,270 3% (5,315) (5,194) (5,247) 2% 1% (20,266) (20,053) 1% 1,233 1,215 1,051 2% 17% 4,796 4,217 14% 19% 19% 17% 0 p.p. 2 p.p. 19% 17% 2 p.p. (186) (198) (202) (6%) (8%) (698) (659) 6% (268) (44) (159) 507% 69% (374) (178) 110% EBITDA for the Segment 1,076 1,274 986 (16%) 9% 4,910 4,440 11% EBITDA Margin for the Segment 16% 20% 16% (3 p.p.) 1 p.p. 20% 18% 2p.p. Gross Margin SG&A Other Operating Income (Expenses)
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