Investor Presentaiton slide image

Investor Presentaiton

2016 Braskem | Annual Report MEXICO In the first year of operation, the average utilization rate of the polyethylene plants at the Braskem Idesa Petrochemical Complex was 42%, registering 443 kton of PE production in 2016. In the year, 431 kton of PE were sold, including resale of resins, to meet the Mexican demand for grades that are not yet produced during the ramp-up phase of the plants.11 Of the total sold, 46% were to the Mexican market and the rest was exported to several regions, among which are Asia, Europe, and the United States. In Mexico, the sales price for polyethylene (PE) is referenced in the price of resins traded in the American Gulf region, whose average amount in 2016 was US$ 1,115/t, which was 9% below 2015. In this scenario, the net revenue recorded in 2016 was BRL 1.6 billion (US$ 474 million). BUSINESS STRUCTURE OF BRASKEM IDESA This business segment consists of an ethane-based cracker, two high density polyethylene (HDPE) plants, and one low density polyethylene plant (LDPE) with annual production capacity of 1,050 kton of PE. Since May 2016, the result of Braskem Idesa is no longer registered as a project and became a reportable operating segment. The same occurred with the result of the LDPE plant, but only as of August 2016. FINANCIAL OVERVIEW (BRL MILLION) MEXICO* Net Sales Revenue Cost of Goods Sold Gross Income 44 4T16 (A) 3T16 4T15 VAR. (B) (C) VAR. 2016 (A)/(B) (A)/(C) (D) 2015 VAR. (E) (D)/(E) 714 538 33% 1,587 (428) (325) 32% (1,017) 286 214 34% 570 Gross Margin 40% 40% 0.4 p.p. 36% SG&A (73) (79) (8%) (246) Other Operating Income (Expenses) (27) (43) (37%) (125) EBITDA for the Segment 336 214 57% 530 EBITDA Margin for the Segment 47% 40% 7.3 p.p. 33% 11 Ramp-up is a term used in economics and business to define the early stage of industrial production
View entire presentation