Investor Presentaiton
Fundamental aspects in the profitability of the petrochemical industry
(=)
(-)
(-)
Net Revenue
(Demand x Price)
COGS¹
(Variables + Fixed)
SG&A²
(Sales + G&A)
(=)
Recurring
Operating Result
.
Conceptual
Demand (sales volume): strong correlation with the growth rate of the
economy
Product Pricing: follows international references and is defined by the
marginal producer (the producer with the highest cash cost)
• Variable Costs: Feedstock is a key factor in the competitiveness and
represents between ~60-70% of total production costs
• Fixed Costs: production scale influences the competitiveness of the
petrochemical industry
• % in relation to Net Revenue: historically, represents between ~5-8% of
Braskem's consolidated net revenue
• SG&A Breakdown: selling expenses are similar to general and administrative
expenses (~50-50%)
Margins: cyclic, with the existence of "peaks" (high margins) and "valleys"
(low margins) in the petrochemical cycle
Source: Braskem. Note (1): COGS: Cost of Goods Sold. Note (2): SG&A: Sales, General & Administrative Expenses.
PUBLIC
Braskem
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