Investor Presentaiton
2016 Braskem | Annual Report
without deformation and may be
fully recycled, aligned with our
sustainable commitments.
It is also worth mentioning the
use of of I'm green™ Polyethylene
(green plastic) to produce
equipment and parts in zero
gravity. The project was the result
of a partnership with Made In
Space, a leading North American
company in the development
of 3D printers for zero gravity
operation and a supplier for the
North American Space Agency
(NASA). This is one of the essential
advances for a possible mission to
Mars and we are very proud to be
part of this epic moment.
Perspectives
Despite the adversities, 2016 was
a year that once again proved
the soundness of Braskem's
operations. We are a strong
Company, committed to the growth
of the regions where we operate,
and firm in our commitment to
contributing to the sustainable
development of the planet.
In Brazil, despite the consistent
decline in inflation and rising
investor confidence seen in
recent months, the challenges
of the macroeconomic scenario
for 2016 continue in 2017.
Although resumption of growth
is expected, the consensus is
that it will occur at a slow and
gradual pace.
In the international market,
according to the International
Monetary Fund (IMF),
the outlook for advanced
economies improved for 2017
and 2018, due to stronger
economic activity in the second
half of 2016 and projected
fiscal stimulus in the United
States. For emerging markets
and developing economies in
general, prospects for growth
have marginally worsened,
with positive reviews for China
and negative for countries
such as Mexico, influenced by
uncertainties regarding the
election of Donald Trump in the
United States.
Concerning the dynamics of
the oil market, expectations
are to maintain the agreement
between OPEC members and
other producers to limit global
supply, which may lead to an
increase in the price of oil and
consequent increase of the
competitiveness of the gas
based producer compared to the
naphtha based producer.
Concerning the petrochemical
market, new polyethylene
capacities in the United States
may pressure the spreads of
polyethylene in the international
market whithin the period
beginning in the end of 2017
and continuing mainly in
2018, with expected recovery
beginning in 2019. Regarding
the other resins (PP and PVC),
expectations are to maintain
the spreads at sustainable
levels, especially in the North
American polypropylene market,
where there is no new capacity
beginning operation until the
end of this decade.
on
In this context, the Company's
strategy remains focused
diversifying the raw material
and geographic profile as a
way to mitigate the volatility of
the petrochemical cycle, taking
advantage of the synergies
between Braskem's industrial
units and commercial offices
for both marketing products
and identifying new investment
opportunities,
reinforcing
petrochemical activity in order
to guarantee the operational
efficiency, productivity, and
competitiveness of units in
all regions, with emphasis on
stabilizing production at the
Petrochemical Complex in
Mexico. We are also committed
to continuously improving
the compliance program and
governance practices, maintaining
financial soundness, and cost
discipline. Thus, we continue
on the mission of building an
increasingly global Company.
Enjoy your reading
Fernando Musa
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