Investor Presentaiton
Braskem reduces FX risk by setting a Long-Term Currency Hedge Program
Financial Highlights - FX Risk
FX Exposure
(%)
"Dollarized" company - sales are referenced in USD, but some costs (e.g.,
fixed costs), expenses and CAPEX, referenced in BRL
7%
20%
Mismatch between
dollarized sales and costs:
93%
Main generator of the
exposure
80%
Costs
Sales
Dollarized slow transfer¹
-
Dollarized - quick transfer
Source: Braskem. Note (1): The currency conversion in the Brazilian market is done after 2 months.
Reference in BRL
Dollarized
Comments:
1
2 3
4
With the objective of partially mitigate the
long-term FX risk, as of Sep/2016, the
Company started to contract financial
derivatives to compose a Long-Term Foreign
Exchange Hedge Program
The program's main form of mitigation is
dollar call and put option contracts,
protecting expected flows for a horizon
of up to 24 months
In addition to the Hedge Program, in order to
balance the composition between assets and
liabilities in dollars, Braskem's Financial Policy
establishes that the Company must always
maintain a percentage of at least 70% of the
net debt expressed in dollars
PUBLIC
Braskem
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