Investor Presentaiton
2016 Braskem | Annual Report
3
US$
3.3
BILLION
in EBITDA at
the end of
2016.
Message from the
Business Leader
G4-1, G4-2, G4-S05 Global Compact - Principle 1
2016 was one of the most
challenging times in Braskem's
history. Nevertheless, we have
much to be proud of. Our
Company has accomplished
unprecedented achievements,
the result of a consistent business
strategy based on international
presence, diversification of
raw materials and constant
improvement of operational
efficiency, competitiveness, and
Governance and Compliance
standards. These pillars not
only ensured us the resilience
necessary to overcome the
turbulence, but also proved that
we are on the right track towards
a promising future of sustainable
growth.
Scenario
The main adversities effecting
our activities in 2016
came
from the uncertainties in the
political and economic scenario,
both globally and in our main
country of operation, Brazil.
At the international level, we
faced a slowdown in the pace
of world economic growth from
key factors such as the exit of
the United Kingdom from the
European Union and the fierce
US presidential election. Such
occurrences, coupled with
China's new growth pattern,
led to moderate growth in
international trade below 3%
for the fifth consecutive year
- and to a reduction in global
investment.
In Brazil, the recession scenario
persisted. The GDP recorded
a strong decrease of 3.6%
(repeating the level of the
3.8% drop in 2015), driven
by reduced credit and the
prolonged political-institutional
crisis, which aggravated the
effects of historical bottlenecks
of competitiveness.
Historical Operating
Performance
In 2016, Braskem achieved good
operating results thanks to the
gains in production efficiency
and stronger integration among
the industrial units in Brazil,
Mexico, the United States, and
Germany, and commercial offices
around the world. This formula
was the basis for achieving a
record EBITDA for the Company
in both Brazilian reais (BRL 11.5
billion) and in dollars (US$ 3.3
billion) at the end of 2016.
It is important to note that,
despite the recession in Brazil,
in 2016 our Brazilian units
of basic petrochemicals and
resins recorded good operating
performance. We achieved a
historical record of 8.5 million
tons of basic petrochemicals,
a volume 3% higher than in
2015, with an average cracker
utilization rate of 92% (the
best in the historical series), an
increase of three percentage
points (p.p.) compared to the
previous year. Resin production
reached 4.9 million tons, up 4%.
Despite
the weak
demand
in the Brazilian market, we
also achieved record sales
results. Domestic sales of basic
petrochemicals were 1.9 million
tons, up 5%. Resin sales totaled
3.3 million, with a slight decrease
of 1%. Our commercial strategy,
however, made it possible to
take advantage of opportunities
sectors less
production
affected by the Brazilian crisis,
helping to expand our exports.
in
In 2016, international shipments
of resins from Brazil totaled 1.7
million tons, an expansion of
24% compared to 2015.
Diversifying raw materials and
geographic presence continued
to be a priority in our global
strategy. We achieved a 100%
average utilization rate of the
polypropylene plants in the
United States and Europe, which
was reflected in a 2% increase
in sales volume in the respective
regions compared to 2015,
reaching a level of two million
tons.
of
the start
2016 marked
operation of the Petrochemical
Complex in Mexico, a milestone
in our internationalization
process that required a US$ 5.2
billion investment, the largest
amount ever invested by a
industrial company with BrazilianView entire presentation