<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>ex-99_1.txt
<DESCRIPTION>RELEASE DATED AUGUST 5, 2003
<TEXT>
Braskem
COMPANHIA
BOVESPA NIVEL 1 BAK
MERCADO LISTED
BOVESPA - BRASIL NYSE
BOVESPA: BRKM
NYSE: BAK
www.braskem.com.br
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BRASKEM ANNOUNCES NET EARNINGS OF R$ 468 MILLION
FOR THE FIRST HALF 2003
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(Sao Paulo, Brazil, August 5, 2003) Braskem S.A. (BOVESPA: BRKM) (NYSE: BAK)
today announced its earnings for the second quarter of 2003. Results are stated
in Reais in accordance with the Brazilian Corporate Law, except that the results
presented herein are not in accordance with CVM Instruction 247 as they exclude
the effects of proportional consolidation. As the business combination that
formed Braskem occurred on August 16, 2002, the financial information and
analysis contained herein are based on Braskem's unaudited consolidated
pro-forma financial statements, taking into account Braskem's stakes in OPP
Quimica S.A. ("OPP Quimica"), Trikem S.A. ("Trikem"), Nitrocarbono S.A.
("Nitrocarbono") and Polialden Petroquimica S.A. (Polialden) as if the corporate
structure on June 30, 2003 had existed since the beginning of the fiscal-year
2002. The comments in this release refer to unaudited consolidated earnings with
all comparisons being made with the same period in 2002, except where otherwise
indicated. Braskem's unaudited consolidated pro-forma balance sheet and income
statement have been reviewed by independent auditors and reflect the elimination
of the effects of CVM Instruction 247 (i.e. only those investments under the
direct management of Braskem are consolidated, and Braskem's stakes in Politeno
Industria e Comercio S.A. and COPESUL -- Companhia Petroquimica do Sul are
recognized via the equity accounting method). On June 30, 2003, the Brazilian
Real/US Dollar exchange rate was R$ 2.8720/US$ 1.00.
1. Second Quarter Highlights
--------------------------------------------------------------------------------
o Braskem's net revenues totaled R$2.2 billion in the second quarter of 2003,
47% higher than the net revenues of R$1.5 billion in the second quarter of
2002. Such increase reflects Braskem's successful strategy of realigning
the prices of its products sold in the domestic market with international
prices. In the first half of this year, Braskem's net revenues totaled
R$4.4 billion, 65% higher than the net revenue of R$ 2.7 billion in the
first half of 2002.
o Braskem's strong performance with respect to exports contributed to the
increase in its net revenues. During the second quarter of 2003, net
revenues from exports to foreign markets, including sales within Mercosul,
totaled US$181 million, which is 32% higher than net revenues of US$137
million reported during the same quarter of the previous year. During the
first half of 2003, net revenues from exports totaled US$ 317 million, 38%
higher than US$230 million during the first half of 2002.
o Synergies arising from Braskem's continuing integration process through
June 30, 2003, amounted to R$240 million, on an annualized and recurring
basis, out of an projected total of R$330 million.
o Selling, general and administrative expenses (SG&A, except for expenses
arising from depreciation and amortization) during the first half of this
year totaled R$176 million, 10% higher than these expenses during the same
period in 2002. However, this 10% increase is significantly lower than the
inflation rate in Brazil over the last 12 months. In addition, during the
first quarter of 2003, such expenses amounted to 4.7% of Braskem's net
revenues for such quarter, as compared to 6.5% of Braskem's net revenues
during the first quarter of 2002. In the first half of 2003, the same
expenses amounted to 4% of Braskem's net revenues, while in the first half
of the previous year
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<PAGE>
these expenses amounted to 5.9% of the Company's net revenues. Such
decreases, as measured in constant currency, are associated with the
synergies arising from Braskem's continuing integration process and with
overall improvement of the company's productivity levels.
o EBITDA for the second quarter of 2003 totaled R$405 million, 28% above the
EBITDA of R$ 315 million registered during the second quarter of 2002. In
the second quarter of 2003, Braskem's EBITDA margin was 19%. EBITDA for the
first half of 2003 was R$ 855 million, 54% higher than the EBITDA of R$554
million for the same period of the previous year. Braskem's EBITDA margin
during the first half of 2003 was 19%. Operating cash flow totaled R$879
million in the first half of 2003 and R$2.1 billion during the last 12
months.
o Net income during the second quarter of 2003 was R$338 million, offsetting
a loss of $316 million registered during the same period of the previous
year. Net income for the first half of 2003 was R$468 million, offsetting a
loss of R$480 million in the first semester of 2002.
o In the second quarter of 2003 Braskem reduced its net debt by R$659 million
- from R$ 6.4 billion on March 31 2003, to R$ 5.7 billion, on June 30,
2003.
o As compared to the fiscal-year-end 2002, in the first half of 2003, Braskem
reduced its net debt by R$1.1 billion, from R$6.8 billion on December 31,
2002 to R$5.7 billion on June 30, 2003. During the second quarter of 2003,
Braskem decreased its short-term debt by R$345 million.
Decreasing Debt
Changes in Net Debt dec/02 mar/03 jun/03
------------------- ------ ------ ------
NET DEBT (R$ million) 6,815 6,365 5,706
NET DEBT/EBITDA (LTM*) 5.10 4.11 3.49
--------------------------------------------------------
* Last twelve months; does not include non-recurring items
in the calculation of EBITDA
o As a further step in its corporate integration process, Braskem entered
into an agreement to purchase the common shares of the capital stock of its
subsidiaries Trikem and Polialden owned by Mitsubishi Chemical Corporation
("Mitsubishi") and also entered into a memorandum of understanding with
Nissho Iwai Corporation ("Nissho Iwai"), by which the latter will exchange
its stakes in Trikem and Polialden for equity interest in Braskem. By means
of this transaction, Nissho Iwai will hold 4.2% of Braskem's voting
capital, corresponding to 1.6% of its total capital. Further information on
such transactions is available in the Investor Relations section of
Braskem's webpage at www.braskem.com.br. The conclusion of this further
step in the process of Braskem's corporate integration will increase
Braskem's interests in its subsidiaries, Trikem and Polialden, as follows:
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<PAGE>
[GRAPHIC OMITTED]
[Graphic depicts that (i) Previ owns 2.9% of the voting capital stock of Braskem
and 3.4% of the total capital stock of Braskem ; Petroquisa owns 7.8% of the
voting capital stock and 11.1% of the total capital stock of Braskem; Odebrecht
owns 43.2% of the voting capital stock and 43.3% of the total capital stock of
Braskem; Norquisa owns 29.5% of the voting capital stock and 12.0% of the total
capital stock of Braskem; Mariani owns 3.4% of the voting capital stock and 3.5%
of the total capital stock of Braskem; Petros owns 2.9% of the voting capital
stock and 1.1% of the total capital stock of Braskem; and unspecified investors
in the stock market own 10.2% of the voting capital stock and 25.6% of the total
capital stock of Braskem; and (2) Braskem owns 29.5% of the total and voting
capital stock of Copesul; 100% of the voting capital stock and 56.3% of the
total capital stock of Polialden; 92.9% of the voting capital stock and 51.6% of
the total capital stock of Trikem; and 35.0% of the voting capital stock and
33.5% of the total capital stock of Politeno.] % Voting Capital - % Total
Capital
Braskem in Numbers
Net Sales (R$ millions) EBITDA (R$ millions)
[Graphic omitted] [Graphic depicts [Graphic omitted] [Graphic depicts
that in the first half of 2003 that in the first half of 2003
Braskem's net sales in Reais were Braskem's EBITDA in Reais was R$855
R$4.447 billion, 65% higher than million, 54% higher than R$554
recorded in the previous year of million recorded in the first half
R$2.697 billion.] of 2002.]
Net Profit (R$ millions)
[Graphic omitted] [Graphic depicts
that in the first half of 2002
Braskem had a loss of R$480 million
compared to a gain of R$468 million
in the first half of 2003, which
corresponds to a difference of
R$948 million.]
Net debt (R$ millions) Net Debt/EBITDA (LTM*)
[Graphic omitted] [Graphic depicts [Graphic omitted] [Graphic depicts
that in June 2003 Braskem's net that the ratio between Braskem's
debt was R$5.706 billion compared net debt and EBITDA in December
to R$6.365 billion in March 2003, 2002 was 5.10, in March 2003 was
and R$6.815 billion in December 4.11 and in June 2003 was 3.49,
2002, which corresponds to a which corresponds to a decrease of
R$1.109 billion decrease between 32% between December 2002 and June
December 2002 and June 2003.] 2003.]
* LTM - last twelve months; non recurring items excluded from the calculation of
EBITDA.
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<PAGE>
2. Operating Performance
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o Industrial and Sales Performance
<TABLE>
<CAPTION>
2Q03 2Q02 Chg% 1HO3 1HO2 Chg%
Production Volume - tons (A) (B) (A)/(B) (C) (D) (C)/(D)
------------------------ ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C>
Polyolefin Unit
- PE's-Polyethylene 160,485 138,003 16% 317,173 292,799 8%
- PP-Polypropylene 102,661 98,353 4% 210,193 190,884 10%
Vinyls Unit
- PVC - Polyvinyl Chloride 85,494 104,477 -18% 189,338 192,040 -1%
- Caustic Soda 110,943 91,056 22% 208,171 182,651 14%
Basic Petrochemicals Unit
- Ethylene 251,266 198,112 27% 480,431 422,880 14%
- Propylene 118,554 89,132 33% 226,186 191,821 18%
Business Development Unit
- PET 9,466 13,763 -31% 24,377 27,873 -13%
- Caprolactam 11,394 13,574 -16% 22,674 27,713 -18%
</TABLE>
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Braskem's Polyolefins and Basic Petrochemicals Units presented a better
operating performance during the second quarter of 2003 when compared with the
same period of the preceding year. This was partially due to a maintenance
shutdown in the Pirolysis I Unit at the basic petrochemicals industrial
facilities, located in Camacari,Bahia, which occurred during the second quarter
of 2002.
The operating performance of the Vinyls Unit during the first quarter of 2003
was significantly affected by scheduled maintenance shutdowns in Braskem's PVC
plants, both in Camacari,Bahia (18 days), and in Marechal Deodoro, Alagoas (7
days).
Scheduled maintenance stoppages in the PET (30 days) and caprolactam (12 days)
plants of the Business Development Unit also occurred during the second quarter
of 2003.
<TABLE>
<CAPTION>
2Q03 2Q02 Chg% 1HO3 1HO2 Chg%
Sales Volume - tons (A) (B) (A)/(B) (C) (D) (C)/(D)
------------------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C>
Polyolefin Unit
- PE's-Polyethylene 142,593 140,175 2% 306,626 303,887 1%
- PP-Polypropylene 94,900 98,120 -3% 206,616 193,376 7%
Vinyls Unit
- PVC - Polyvinyl Chloride 79,864 100,361 -20% 190,543 203,963 -7%
- Caustic Soda 101,067 89,549 13% 202,984 181,185 12%
Basic Petrochemicals Unit
- Ethylene* 248,195 202,092 23% 478,446 430,005 11%
- Propylene 118,511 86,585 37% 229,297 191,758 20%
Business Development Unit
- PET 8,740 17,020 -49% 22,880 30,589 -25%
- Caprolactam 12,223 14,515 -16% 25,042 27,080 -8%
</TABLE>
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* Of this amount, 71,000 tons (28.5%) were sold to companies that are part of
Braskem (Trikem and Polialden) during the second quarter of 2003. During the
first half of 2003 such amount was 174,000 tons (36.3%).
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<PAGE>
Sales volumes of thermoplastic resins in the second quarter of 2003 in the
domestic market totaled 326,097 tons, down 9% from the 355,676 tons sold during
the same period in the preceding year. This performance reflects mainly a
reduction in the economic activity in Brazil, which was partially offset by the
increase in export volumes. Year-to-date local sales of thermoplastic resins
totaled 726,665 tons, practically in line with the 731,815 tons sold during the
first half of 2002.
Braskem has maintained its strategy for the optimization of the Company's
working capital utilization, continuously adjusting its production volumes in
order to meet actual market demand for its products.
o Exports
In the second quarter of 2003 Braskem's net revenues from exports were US$181
million, 32% higher than net revenues from exports of US$137 million recorded
during the previous year. Braskem's year-to-date net revenues from exports
increased by 38% to US$317 million, as compared to US$230 million during the
first half of 2002. Expressed as a percentage of net revenues, Braskem's net
revenues from exports during the first half of 2003 were 23%, higher than the
21% of net revenues recorded during the same period of 2002.
Exports Evolution Export Markets in the first half of
(US$ millions) 2003 (%)
[Graphic omitted] [Graphic depicts [Graphic omitted] [Graphic depicts
that in the second quarter of 2003 percentage of export market: North
Braskem's net revenues from exports America represents 31%; Europe
in US Dollars were US$181 million, represents 28%; Asia represents
32% higher than the previous year. 20%; Latin America represents 18%;
Braskem's year-to-date net revenues and Africa represents 3%.]
from exports increased by 38% to
US$317 million, as compared to
US$230 million during the first
half of 2002.]
o Synergies resulting from the integration process
As a result of its continuing integration process and on an annualized and
recurring basis, Braskem has benefited from a total of R$240 million in already
captured synergies out of a projected total of R$330 million.
Synergies*:
(R$ million)
[Graphic omitted] [Graphic depicts that
in June 2003 Braskem has realized a
total of R$240 million in already
captured synergies out of a projected
total of R$330 million, compared with
R$75 million as of December 2002 and
R$53 million as of September 2002.]
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<PAGE>
3. Financial Performance
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o Net Revenues:
Net Sales
During the second quarter of 2003, (R$ million
Braskem's net revenues totaled
R$2.155 billion, 47% higher than [Graphic omitted] [Graphic depicts
the R$1.468 billion during the same that during the second quarter of
period in 2002. The main driver for 2003, Braskem's net revenues
this performance was the domestic totaled R$2.155 billion, 47% higher
price-realignment implemented for than R$1.468 billion recorded
the Company's thermoplastic resins during the same period in 2002 and
and basic petrochemicals sold in that Braskem's net revenues were
Brazil. R$4.447 billion in the first half
of 2003, 65% higher than net
Braskem's net revenues were R$4.447 revenues of R$2.697 billion during
billion in the first half of 2003, the first half of 2002.]
65% higher than net revenues of
R$2.697 billion during the first
half of 2002.
The table below provides a breakdown of net revenues per Business Unit:
<TABLE>
<CAPTION>
Business Units 2Q03 2Q02 Chg% 1HO3 1HO2 Chg%
(R$ million) (A) (B) (A)/(B) (C) (D) (C)/(D)
-------------- ----- ----- ------- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C>
Domestic Market 1,619 1,121 44 3,437 2,131 61
Basic Petrochemicals 706 360 96 1,483 728 104
Polyolefin 578 440 31 1,172 807 45
Vinyls 239 240 0 569 440 29
Business Development 95 81 18 213 156 37
Exports 536 348 54 1,009 566 78
Total Net Sales 2,155 1,468 47 4,447 2,697 65
</TABLE>
o Cost of Goods Sold (COGS):
Composition of Cost of Goods Sold In the second quarter of 2003, cost
in 2Q03 (%) of goods sold ("COGS") totaled
R$1.734 billion, 46% higher than
Breakdown - COGS [Graphic omitted] the R$1.184 billion in the second
[Graphic depicts the composition of quarter of 2002. The main reason
cost of goods sold in the second for this increase was a 54%
quarter of 2003: naphtha represents increase in the price of naphtha,
68.4%; other variable costs Braskem's principal raw material,
represent 20.1%; depreciation between the two periods.
represents 3.6%; electric energy
represents 2.6%; personnel
represents 1.8%; other represents
1.6%; services represent 1.3%; and
materials represent 0.6%.]
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<PAGE>
During the second quarter of 2003, Braskem purchased 988 thousand tons of
naphtha, of which 610 thousand tons (62%) were purchased from Petrobras -
Braskem's main raw material supplier. The remaining 378 thousand tons (38%) was
imported directly by Braskem, mainly from African and South American suppliers.
The average price of naphtha during the second quarter of 2003 was US$230/ton, a
28% decrease from the average price of US$ 318/ton during the first quarter of
2003.
During the first half of 2003, Braskem's COGS was R$ 3.558 billion, 60% higher
than its COGS of R$2.228 billion during the first half of 2002, as a result of
an increase in the international price of naphtha.
Braskem's depreciation and amortization costs associated with COGS increased 15%
to R$63 million during the second quarter of 2003 from R$55 million during the
same period of last year. During the first half of 2003, depreciation and
amortization costs increased 7%, to R$131 million, as compared to R$123 million
during the first half of 2002
o Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were 4% higher during the
second quarter of 2003, totaling R$100 million as compared to R$96 million
during the second quarter of 2002. As a percentage of net revenues, such
expenses were 4.7% in the second quarter of 2003 compared to 6.5% during the
same period of 2002.
During the first half of 2003, SG&A expenses increased 10% to R$176 million from
R$160 million during the same period of 2002. This percentage remained below the
inflation rate over the past 12 months. Such decreases, as measured in constant
currency, are associated with the estimated synergies arising from Braskem's
continuing integration process and to the overall improvement of the
company's productivity levels.
o Depreciation and Amortization Expenses
Depreciation and amortization expenses totaled R$39 million during the second
quarter of 2003 compared to R$187 million during the second quarter of 2002. The
difference is attributed primarily to Braskem's decision to fully amortize the
deferred foreign exchange losses, by registering R$167 million of these deferred
expenses in the second quarter of 2002. Depreciation and amortization expenses
during the second quarter of 2003 include R$27 million resulting from the
amortization of portions of goodwill related to expected future profits of OPP
Quimica, which merged into Braskem on March 31, 2003.
Depreciation and amortization expenses decreased to R$83 million during the
first half of 2003 from R$230 million during the first half of last year,
primarily due to the full amortization of R$190 million of the aforementioned
deferred foreign exchange losses , partially offset by expenses in respect of
the amortization of portions of goodwill related to expected future profits of
OPP Quimica, as already discussed.
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<PAGE>
o EBITDA
In the second quarter of 2003, EBITDA
EBITDA was R$405 million, 28% (R$ million)
higher than the R$315 million [Graphic omitted] [Graphic depicts
reported in the second quarter of that in the second quarter of 2003,
2002. EBITDA was R$855 million for EBITDA was R$405 million, 29%
the first half of 2003, 54% higher higher than the R$315 million
than the R$554 million for the reported in the second quarter of
first half of 2002. The EBITDA 2002 and that EBITDA was R$855
margin for the first half of 2003 million for the first half of 2003,
was 19.2%, compared to 20.5% for 54% higher than EBITDA of R$554
the first half of 2002. million for the first half of
2002.]
o Equity in Subsidiaries
In the second quarter of 2003, equity in subsidiaries was a loss of R$25
million, resulting in a loss of R$5 million in equity in subsidiaries during the
first half of the year, as compared to a gain of R$361 million registered in the
same period of the previous year.
Equity Income 2Q03 1H03
Equity Income from Subsidiaries 883 947
Equity Income from Affiliates 28,580 57,713
- Copesul 22,336 36,300
- Politeno 5,998 16,663
- Petroflex 750 5,304
- Outros (504) (555)
Foreign Exchange Effects 19,503 27,713
Amortizations (75,576) (140,737)
Other 1,747 49,642
---------------------------------------------------------------
TOTAL (24,863) (4,723)
---------------------------------------------------------------
o Net Financial Result
2Q03 1H03
(1) Foreign Exchange (F/X) Impact 632 825
On F/X assets (126) (210)
On F/X liabilities 758 1,035
(2) Financial Result excluding F/X
Impact (374) (654)
Interest/Monetary Restatement (167) (355)
Interest 121 (210)
Monetary Restatement (46) (145)
CPMF, banking expenses and other (206) (298)
FINANCIAL RESULT*.......(1) + (2) = 258 171
* Net F/X variation + Financial Result excluding F/X impact
The net financial result in the second quarter of 2003 was a gain of R$258
million, impacted primarily by a 14% devaluation of the US Dollar against the
Real, which generated a net positive exchange gain of R$632 million.
The financial result during the first half of 2003 was a gain of R$ 171 million,
offsetting a loss of R$1.241 billion recorded during the same period in 2002.
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<PAGE>
o Net Income (loss)
Net income was R$338 million during the second quarter of 2003, offsetting a
loss of R$316 million during the second quarter of 2002. Decisive contributions
to this result were: (i) the improvement of Braskem's commercial
performance;(ii) the synergies resulting from Braskem's continuing integration
process;(iii) the increase in net revenues from exports;(iv) Braskem's solid
operating performance during the second quarter of 2003, as reflected by the
Company's EBITDA of R$405 million during the second quarter of 2003; and (v) the
positive net financial result of R$258 million, associated with the appreciation
of the Brazilian Real against the US Dollar - during this period.During the
first half of 2003, Braskem posted net income of R$468 million, offsetting a
loss of R$480 million recorded during the same period in 2002.
4. Changes in the Indebtdeness
--------------------------------------------------------------------------------
[Graphic omitted] [Graphic depicts In the second quarter of 2003,
that in June 2003 Braskem's net Braskem reduced its consolidated
debt was R$5.706 billion compared net debt by R$659 million (10%),
to R$6.365 billion in March 2003 from R$6,365 million as of March
and R$6.815 billion in December 31, 2003 to R$5,706 million as of
2002, which corresponds to a June 30, 2003.
R$1.109 billion decrease between
December 2002 and June 2003.] Consolidated gross debt totaled
R$6,332 million as of June 30,
Net Debt/EBITDA (LTM) 2003, 12% lower than the R$7.187
billion recorded as of March 31,
[Graphic omitted] [Graphic depicts 2002. R$696 million of this debt is
that the ratio between Braskem's comprised of debentures for which
net debt and EBITDA in December payment of principal and interest
2002 was 5.10, in March 2003 was is scheduled in July 2007.
4.11 and in June 2003 was 3.49, Short-term debt obligations total
which corresponds to a decrease of R$2,454 million, or 39% of
32% between December 2002 and June Braskem's total gross debt.
2003.] Braskem's has decreased its
short-term debt during the second
quarter of 2003 by R$345 million
compared to the first quarter of
2003. Of this amount of short-term
debt, approximately R$559 million
is related to working capital
financing, R$1.12 billion
corresponds to trade finance lines
and R$184 million corresponds to
capital markets obligations.
Braskem's remaining debt is
comprised of government debt
obligations and by the current
portion of long-term bank loans.
Braskem has been prioritizing the use of its cash flow surpluses to decrease its
debt. In addition, the Company has been structuring financial transactions in
the domestic and international financial markets in order to refinance its
short-term obligations. In July, 2003, Braskem issued successfully the first
tranche of its US$ 500 million Medium-Term Note Program, raising US$ 75 million
with a tenor of one year. Finally, Braskem recently refinanced a US$ 80 million
loan which matured in July 2003.
Braskem's net debt is comprised of US dollar-indexed liabilities (66%); debt
linked to the TJLP (Brazilian long-term interest rates) (17%); debt linked to
the CDI (the Brazilian interbank rate) (9%); debt linked to the IGP-M (6%); and
fixed-rate obligations (2%).
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<PAGE>
5. Capital Expenditures
--------------------------------------------------------------------------------
The Company invested R$32 million in its capital expenditure programs during the
second quarter of 2003, addressing the needs of its Business Units regarding
operational, health, safety and environmental issues. During the first half of
2003, Braskem's operating investments amounted to R$65 million.
6. Capital Markets
On June 30, 2003, Braskem's Class "A" preferred shares (BRKM5) closed trading on
the Bovespa at R$373.80 per lot of 1,000 shares, which corresponded to an
appreciation of 70% during the first half of 2003. During the same period,the
Ibovespa index increased by 15%.
During the second quarter of 2003, Braskem's preferred shares were traded in
100% of the trading sessions on Bovespa, and showed a growing average daily
trading volume.
Braskem's preferred shares are also traded on the New York Stock Exchange
(NYSE), through Level 2 ADRs, and presented an appreciation of 94% during the
first semester of 2003.
Stock Price Performance in 2003
100 basis on 12/31/2003
[Graphic omitted] [Graphic depicts the percentage change in stock performance in
between January 1, 2003 and June 30, 2003. A summary of the same as of the
beginning, middle and end of each month follows:
--------------------------------------------------------------------------------
Date BRKM5 BAK Ibovespa
--------------------------------------------------------------------------------
January 1, 2003 100.0 100.0 100
--------------------------------------------------------------------------------
January 15, 2003 120.5 122.7 106.2
--------------------------------------------------------------------------------
January 31, 2003 83.6 78.8 97.1
--------------------------------------------------------------------------------
February 4, 2003 77.5 71.8 93.9
--------------------------------------------------------------------------------
February 14, 20003 71.8 66.7 89.5
--------------------------------------------------------------------------------
February 28, 2003 75.0 69.7 91.2
--------------------------------------------------------------------------------
March 5, 2003 75.5 69.7 91.45
--------------------------------------------------------------------------------
March 14, 2003 76.4 74.5 95.9
--------------------------------------------------------------------------------
March 31, 2003 96.9 96.9 100.0
--------------------------------------------------------------------------------
April 1, 2003 103.6 101.5 102.9
--------------------------------------------------------------------------------
April 15, 2003 115.0 121.2 107.4
--------------------------------------------------------------------------------
April 30, 2003 152.7 173.0 111.4
--------------------------------------------------------------------------------
May 2, 2003 155.0 175.8 113.7
--------------------------------------------------------------------------------
May 15, 2003 164.0 186.4 116.5
--------------------------------------------------------------------------------
May 30, 2003 163.6 187.3 119.1
--------------------------------------------------------------------------------
June 2, 2003 159.6 179.0 117.4
--------------------------------------------------------------------------------
June 13, 2003 179.1 207.6 121.9
--------------------------------------------------------------------------------
June 30, 2003 169.9 194.2 115.1]
--------------------------------------------------------------------------------
Braskem is listed on the Bovespa as a Level I Corporate Governance company and
its preferred shares are part of the Ibovespa index and the IGC index
(Differentiated Corporate Governance Index).
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<PAGE>
7. Earnings Conference Call and Presentation to Investment Community
Braskem will present its results for the first half of 2003 to the domestic
financial community at meetings to be held at APIMEC in Sao Paulo and ABAMEC in
Rio de Janeiro on August 12, 2003. Additionally, Braskem will hold an
international conference call on August 14, 2003. For further details, please
visit Braskem's website at www.braskem.com.br or contact Braskem's Investor
Relations Department.
--------------------------------------------------------------------------------
Braskem is a world-class Brazilian company, leader in the thermoplastics segment
in Latin America and among the five largest Brazilian privately-owned industrial
companies. The company operates 13 manufacturing plants located throughout
Brazil, and it has a yearly production of 5.0 million tons of petrochemical
products.
--------------------------------------------------------------------------------
For additional information, please contact:
<TABLE>
<S> <C> <C>
Vasco Barcellos Jose Marcos Treiger Luiz Henrique Valverde
Investor Relations Investor Relations Investor Relations
Tel: (5511) 3443 9178 Tel: (5511) 3443 9529 Tel: (5511) 3443 9744
Fax: (55 11) 3443 9532 Fax: (55 11) 3443 9532 Fax: (5511) 3443-9532
E-mail: vasco.barcellos@braskem.com.br E-mail: jm.treiger@braskem.com.br E-mail: luiz.valverde@braskem.com.br
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Forward-Looking Statement Disclaimer for U.S. Securities Law Purposes
This press release contains statements that are forward-looking within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements are only
predictions and are not guarantees of future performance. Investors are
cautioned that any such forward-looking statements are and will be, as the case
may be, subject to many risks, uncertainties and factors relating to the
operations and business environments of Braskem and its subsidiaries that may
cause the actual results of the companies to be materially different from any
future results expressed or implied in such forward-looking statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the risks and
uncertainties set forth from time to time in Braskem's reports filed with the
United States Securities and Exchange Commission. Although Braskem believes that
the expectations and assumptions reflected in the forward-looking statements are
reasonable based on information currently available to Braskem's management,
Braskem cannot guarantee future results or events. Braskem expressly disclaims a
duty to update any of the forward-looking statement.
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<PAGE>
ATTACHMENT I
Braskem S.A. (Consolidated)
Income Statement 1
(R$ million)
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<CAPTION>
Demonstrativo de Resultado 2Q03 2Q02(2) 1H03 1H02(2)
<S> <C> <C> <C> <C>
Net Sales 2,155 1,468 4,447 2,697
Cost of Goods Sold (1,734) (1,184) (3,558) (2,228)
Gross Profit 420 283 889 470
Selling, General and Administrative Expenses (100) (96) (176) (160)
Depreciation and Amortization (39) (187) (83) (230)
Other Operating Income (Expenses) 22 73 11 121
Equity Income (25) 445 (5) 361
Operating Profit (before financial items) 278 518 636 561
Net Financial Result 258 (1,024) 171 (1,241)
Operating Profit (Loss) 536 (506) 807 (679)
Other Non-Operating Income (Expenses) (17) 38 (18) 23
Profit (Loss) before Income Taxes 519 (469) 789 (657)
Income Taxes (82) 34 (134) 50
Profit (Loss) before Minority Participation 438 (435) 655 (607)
Minority Interest (100) 119 (187) 127
Net Profit (Loss) 338 (316) 468 (480)
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EBITDA 405 315 855 554
EBITDA Margin 18.8% 21.5% 19.2% 20.5%
- Depreciation and Amortization (101) (242) (214) (353)
- Cost (63) (55) (131) (123)
- Expenses (39) (187) (83) (230)
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1- Excludes the effects of proportional consolidation otherwise required by
CVM-247. The numbers may not sum due to the effects of rounding.
2- Pro forma income statement.
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<PAGE>
ATTACHMENT II
Braskem S.A. (Consolidated)
Balance Sheet(1)
(R$ million)
ASSETS 06/30/2003 03/31/2003
--------------------------------------- ---------- ----------
Current Assets 3,192 3,765
- Cash and Banks 104 107
- Marketable Securities 413 463
- Accounts Receivable 1,017 1,278
- Inventories 1,056 1,126
- Taxes to be Recovered 321 470
- Prepaid Expenses 56 77
- Other 225 243
----------------------------------------------------------------------------
Long Term Assets 1,297 1,350
----------------------------------------------------------------------------
- Related Parties 40 33
- Compulsory Deposits 153 141
- Deferred Income Taxes 124 145
- Taxes to be Recovered 718 698
- Marketable Securities 109 126
- Other 154 207
----------------------------------------------------------------------------
Fixed Assets 8,685 8,816
----------------------------------------------------------------------------
- Investments 2,669 2,811
- Plant, Property and Equipment 4,514 4,557
- Deferred 1,502 1,448
----------------------------------------------------------------------------
Total Assets 13,174 13,930
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LIABILITIES AND SHAREHOLDERS' EQUITY 06/30/2003 03/31/2003
--------------------------------------- ---------- ----------
Current 4,947 5,841
----------------------------------------------------------------------------
- Suppliers 1,562 1,946
- Short-term loans 2,084 2,415
- Advances on Export Facilities 370 384
- Salaries Payable 41 81
- Income Taxes 27 23
- Taxes Payable 171 247
- Advances from Customers 415 296
- Advances for Purchase of Credit Rights 147 164
- Others 131 284
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Long Term Liabilities 5,286 5,624
----------------------------------------------------------------------------
- Related Parties 223 258
- Long-term Loans 3,878 4,388
- Taxes Payable 1,055 835
- Others 130 144
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Minority Interest 600 497
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Shareholders' Equity 2,342 1,968
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- Capital 1,848 1,845
- Capital Reserves 754 720
- Treasury Shares (17) (17)
- Retained Earnings (Losses) (243) (580)
----------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity 13,174 13,930
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* Excludes the effects of proportional consolidation otherwise required by
CVM-247. The numbers may not sum due to the effects of rounding.
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