Petrochemical Panel

transcript

Doing Business in Rio Grande do Sul:

Petrochemicals Sector

Brazilian Petrochemical Industry

EXTRACTION Raw Materials

1st GENERATION Basic Petrochemicals

2nd GENERATION Thermoplastic Resins

3rd GENERATION Plastic Converters

COMPETITIVE INTEGRATION

NAPHTHA CONDENSATE ETHANE/PROPANE

ADDED VALUE COMPETITIVINESS

MARKET LEADERSHIP

Biggest Producer of Resin in the Americas

COST COMPETITIVENESS Integration with Scale

TECHNOLOGICAL AUTONOMY Know-How

Strong and consistent growth since foundation

GLOBAL AND AMERICAS RANKING

Resulted in production scale and competitiveness

Braskem after

acquisitions

Exxon Mobil Dow Lyondell Basell

Braskem Formosa Shintech Chevron Philips

Quattor Sunoco

Lyondell Basell

Exxon Mobil SINO PEC Dow Formosa SABIC Ineos Braskem after

acquisitions

Total IPIC Reliance PetroChina Braskem

3.595 3.082

10.914

9.311 8.668

7.480 7.284 7.109 6.541 6.264

4.681 4.564 4.303 4.79 3.595

CAPACITY IN THE AMERICAS (kt/p.a.)

GLOBAL CAPACITY (kt/p.a.)

35 industrial units

Source: Braskem

Industrial Presence

Projects

Bahia - Brazil

1 UNIB

1 Chlorine Soda

Alagoas - Brazil

1 Chlorine Soda

São Paulo - Brazil

2 UNIB

Rio de Janeiro - Brazil

1 UNIB

Rio Grande do Sul - Brazil

2 UNIB

United States

5 PP Neal | La Porte | Marcus

Hook | Freeport | Seadrift

Germany

2 PP Wesseling | Schkopau

Camaçari Bahia

Duque de Caxias Rio de Janeiro

Santo André São Paulo

Triunfo Rio Grande do

Basic Petrochemical Sites in Brazil

Consistent evolution of eco-efficiency indicators

Braskem pro forma data for 2002.

2002 2003 2004 2005 2006 2007 2008 2009 2010

4,25 4,26

4,14 4,15

Water Consumption (m³/t)

2002 2003 2004 2005 2006 2007 2008 2009 2010

11,55 11,46 11,47

Energy Consumption (GJ/t)

2002 2003 2004 2005 2006 2007 2008 2009 2010

3,53 3,28 3,41

3,10 3,38

2,40 2,21

Residue Generation (kg/t)

2002 2003 2004 2005 2006 2007 2008 2009 2010

1,94 1,74

1,40 1,50 1,34 1,28

1,44 1,40 1,24

Effluent Generation (m³/t)

Braskem: Economic and Financial Performance

KEY FINANCIAL ASPECTS:

USD million 2010 2011 %

NET REVENUE 15,828 19,852 +25

Exports 26% 33%

EBITDA 2,308 2,246 -3

EBITDA Margin 14.6% 11.3% 457 581 871 851 764

1.626 1.337

2.308 2.246

19,1 19,3

13,5 14,0 14,6

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EBITDA (USD Million) EBITDA Margin (%)

CAGR 19%

Global Presence

Algeria, Angola, Argentina, Belgium,

Bolivia, British Virgin Islands,

Cameroon, Canada, Chile, China,

Colombia, Congo, Costa Rica,

Dominican Republic, Ecuador, El

Salvador, England, France, Gabon,

Germany, Ghana, Greece, Guatemala,

India, Indonesia, Israel, Italy, Ivory

Coast, Japan, Kenya, Libya, Mexico,

Morocco , Netherlands, Nicaragua,

Nigeria, Pakistan, Panama, Paraguay,

Peru, Philippines, Portugal, Senegal,

Singapore, South Africa, South Korea,

Spain, Sweden, Switzerland, Taiwan,

Tanzania, Togo, Tunisia, Turkey, United

Arab Emirates, United Kingdom, United

States of America, Uruguay and

Venezuela

Ownership Structure

Fonte: Braskem

Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned company

Odebrecht appoints Chairman, CEO and CFO

Mutual right of preference between Odebrecht and Petrobras in case of decision to sell shareholder interests in the company

Braskem rated as Investment Grade by Moody’s, S&P and Fitch´s

Sole vehicle for petrochemical investments of both shareholders, Braskem has the right

To lead all petrochemical investments identified by Petrobras

If not of its interest, has the right to commercialize such products

Governance

Odebrecht Businesses

ODB: Economic and Financial Performance 2011

USD ? billions

USD 23.8 billions

and Others

KEY FINANCIAL ASPECTS:

USD billion 2010 2011

Gross Revenue 31.7V ?

Net Profit 1.6 ?

GROSS REVENUE

To become the leader in thermoplastic resins in Latin

America

Revision of 2012 Strategy

To be among the world’s 10 largest

petrochemical companies in market value

POLITENO

IPIRANGA

COPESUL

Revision of 2020 Strategy

PETROQUÍMICA

TRIUNFO

TRIKEM

POLIALDEN

PAULINIA QUATTOR

SUNOCO

Be the world leader in sustainable chemistry, innovating to better serve people

2020 VISION

Acquisition of Dow’s Polypropylene Business

1. Freeport: 320kt/y

2. Seadrift: 185kt/y

Germany

1. Wesseling: 225kt/y

2. Schkopau: 320kt/y

On the path to leadership sustainable chemicals

Growth with improved competitiveness

Source: Braskem

Projects with Petrobras

PVC Alagoas

Expansion of capacity to 200 kt/year of PVC in Alagoas

Investments of around US$ 500 million, and operational startup expected in the 2nd half of 2012

Butadiene Rio Grande do Sul

Expansion of capacity to 100 kt/year at an investment of R$ 300 million

Partnership with Petrobras for new projects (under appraisal)

Comperj: production and sale of resins and basic petrochemical products. Located in Rio de Janeiro state

BRAZIL

New Projects

Source: Braskem

ETHYLENE XXI PROJECT: Startup in 2015

MEXICO

New Projects

Partnership with the Mexican group IDESA (65% Braskem, 35% IDESA) to build an integrated petrochemical complex to produce 1 Mt/year

ethylene and 1 Mt/year of PE using raw material (ethane) supplied by PEMEX

Investments estimated at US$ 3 billion over 5 years

Source: Braskem

JVs WITH PEQUIVEN THROUGH FINANCING OF PROJECT WITH NET EQUITY OF JUST 30% (UNDER ANALYSIS)

VENEZUELA

New Projects

Polipropileno del Sur – Propilsur

~350 kt/year of PP

Polietilenos de America – Polimerica

1.3 Mt of ethylene and 1.1 Mt/year of PE

Braskem, Petrobras and PetroPerú concluded studies for the technical and economic pre-feasibility of an integrated project to produce between 600 kt and 1,000 kt/year of ethane and polyethylene using the natural gas available in Peru as raw material

Products Portfolio

:: Ethylene

:: Propylene Chemical Gd.

:: Propylene Polymer Gd.

:: Butadiene

:: Paraxylene

:: Benzene

:: Toluene Nitration

:: Orthoxilene

:: Isoprene

:: Butene-1

:: Dicyclopentadiene

:: Pyperilenes

:: Hydrogen

:: Methane Stream

:: M. T. B. E.

:: Heavy Condensate

:: E. T. B. E.

:: RAP

:: Heavy C4

:: Petrochemical Oil BTE

:: Propane High Purity

:: LDPE

:: LLDPE

:: HDPE

:: UHMW-PE

:: EVA

:: Green PE

:: Homopolymer

:: Raco

:: Heco

:: Electricity

:: Steam

:: Water

:: Air

:: PVC

:: EDC

:: Sodium

:: Chlorine

:: Mixed Xilenes

:: Solvent AB9

:: Toluene Solvent

:: AB10+

:: PGH Stream

:: Coperaf1

:: C6 Solvent

:: Aguarras Mineral

:: Light Aliphatic Solvent

:: Dehydrated Ethanol

:: C6C8 Rafinate

:: Autom. Gasoline

:: L P G

:: Carbureting Residue

:: AB9 Solvent

:: C7C8 Aromatic

:: Pyrolisis C9

:: Diesel

:: Caprolactam

:: Amonium Sulfate

:: Cyclohexane

:: Cyclohexanone

:: Nitrol

Basic Petrochemicals Polymers

Petrochemicals Solvents Fuels

Utilities CPL

PEs PPs

Vinyls

Braskem Organization Chart Braskem’s Shareholding Structure Braskem Organization Chart

Braskem Organization Chart Braskem’s Shareholding Structure Basic Petrochemical Organization Chart

Triunfo Basic Petrochemical Site

Summary

Nature Risks exposure

Site Location

Plant Overview

Programs of excellence

Certificates and Main Partnerships

BPU 2 – RS Organization Chart

Summary

7. We believe every loss can be avoided, therefore, the

prevention of accidents, disease, environmental impacts (pollution)

and any other deviation, is always preferred. The search for Zero

Accidents, Zero Diseases, Zero Impact resulting from Waste,

Effluents or Emissions will always be pursued.

Braskem SHE Principle Number 7

Summary

Site Location

Plant Overview

Summary

CORPORATE MANAGERS

A Quality and Productivity

Abelardo Azevedo

Process and Technology

Renato Costa

Industrial Director

Marcia Silva

Plant Manager Marco Vasconcellos

Plant Manager Nelzo Silva

SHE Manager Reginaldo Sabanai

Maintenance Manager Jader Brun

Industrial Planning Manager

Sara Schmidt

Triunfo Basic Petrochemical Organizational Chart

Site Location

Plant Overview

Summary

Distance from major cities:

Porto Alegre: 60 km

São Paulo: 1164 km

Buenos Aires: 1260 km

Montevideo: 960 km

Triunfo Basic Petrochemical Complex Overview

Site Location

Plant Overview

Summary

Lightning

Electrical storms rarely occur. Lightning conductors are installed on all

major Buildings and Structures to contain this risk.

The annual rainfall isn’t heavy and the drainage systems have always proved to be adequate.

Aircraft Collision

The nearest airport is 45 Km (28 miles) from the Plant. Exposure to collision from the aircraft is considered very low. The nearest major public road is about 10 Km (6.2 miles) away.

Earthquake

Rio Grande do Sul is designated as an area below the category of low exposure to earthquake. (MUNICH-RE – 0 Zone)

Natural Risks

Site Location

Plant Overview

Summary

Naphta

Argelin Condensate

Electricity

Jacui river

Boiler Water

Service Water Energy

Terminal

Santa Clara

Rio Grande

Other Refineries Petrobras

REFAP Petrobras

Naphta

Fuel Oil

Natural Gas and pirolisys FO

International

Suppliers

Aromatics

Olefins

Thermoelectric Unit

Propane

Butadiene

Solvent

Gasoline

Ethylene

Propylene

Hydrogen

Natural gas

Nitrogen

C4 Cut

Hydrogen

Naphta

Algelin Condensate

Utilities

Terminal

Santa Clara

Rio Grande / Ferrovia

Ethanol

Green Ethylene

Triunfo General process Flow Chart

UNIB-2

REVAMP

22” 16”

10” 6”

14” ORSUL

Single Buoy Mooring

28” 3 Km

28” 7 Km

TANKS:

4 X 18.000 m³

4 X 35.000 m³

TANKS:

3 X 17.700 m3

1 X 65.000 m3

TANKS:

6 X 30.000 m3

Clean Products

Single Buoy Mooring

Triunfo Naphtha Feedstocks Logistics

Algerian Condensate

International suppliers

Naphtha Areas 31 and 131 Vertical cylinder type tanks 6 available tanks and 4 in use Available capacity: 183.742 m³ Capacity used: 122.642 m³

Algerian Condensate Area 131 Vertical cylinder type tanks 3 available tanks and 2 in use Available capacity: 91.650 m³ Capacity used: 61.100 m³

Naphtha REFAP Petrobras – other refineries International suppliers

10 days of production to Olefins plant

5 days of production to Green Ethylene plant

Ethanol Area 232 and Area 298 Vertical cylinder type tanks 4 available tanks and 2 in use Available capacity: 22.000 m³ Capacity used: 10.000 m³

Ethanol Brazilian suppliers, most part

from southeast

Triunfo Feedstock Overview

Sphere Park: Pressure gas storage 18 spheres Total capacity 43.913 m³

Storage area: Liquid storage 53 tanks Total capacity 320.684 m³

Triunfo Liquid and Gas Storage

Road and rail loading (13%)

Pipeline (70%)

Shipping - Santa Clara Terminal and Rio Grande Terminal (17%)

Triunfo Distribution Profile of Final Products

Site Location

Plant Overview

Summary

• ISO 9001, 14001, 17025

• OHSAS 18001

Triunfo Certifications and Awards

• Shell Global Solutions

• DNV

• Stone & Webster (Shaw Group)

• Linde

• Invensys (Foxboro,Triconex)

• Metso;

• Honeywell;

• Siemens;

• Nalco

• GE

• Kurita

• Dorf Ketal

• Yokogawa

Triunfo Main Partnerships - Suppliers

Site Location

Plant Overview

Summary

InsuranceInsurance

RecommendationsRecommendations

Risk Evaluation

(Survey)Recommendation

Monitoring of

Action Plan

Implementation

Investments

InsuranceInsurance

RecommendationsRecommendations

Risk Evaluation

(Survey)Recommendation

Monitoring of

Action Plan

Implementation

Investments

Braskem Risc Management System

SHE Legal

Normative Quality & Produtivity

HR Technical Training

Certification

HR Development

Competencies Development System (CDS)

Introduction to Culture Odebrecht Business Technology (TEO)

Developing Programs (Leaders and members )

Ambiance to work

Individual Development Plan (PDI)

Normative

Technical EDUCATION

EE-07 Skills and Abilities – Management

Braskem Training Programmes

Thank You !!!

Petrochemical Panel

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