MIRA INFORM REPORT

 

 

Report No. :

302841

Report Date :

16.01.2015

 

IDENTIFICATION DETAILS

 

Name :

BRASKEM S A

 

 

Registered Office :

Rua Eteno,1561 - Complexo Petroquímico Camaçari, 42810-000 - Camaçari/Ba

 

 

Country :

Brazil

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

12.01.1972

 

 

Legal Form :

Publicly Held Corporation

 

 

Line of Business :

Manufacturer of Chemicals.

 

 

No. of Employee :

7807

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Exist

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Brazil

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

BRAZIL - ECONOMIC OVERVIEW

 

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth in 2011-13. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 14 years. Brazil's historically high interest rates have made it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchange markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint.

 

Source : CIA

Company name

 

BRASKEM S A

 

 

ADDRESSES

 

MAIN ADDRESS:

RUA ETENO,1561 - COMPLEXO PETROQUÍMICO CAMAÇARI

ZIP CODE/CITY:

42810-000 - CAMAÇARI/BA

 

 

PHONE:

71 3504-7932

E-MAIL:

braskem@braskem.com.br

WEB SITE:

www.braskem.com.br

 

BRANCHES:

 

 

 

ADDRESS:

AVENIDA DAS NAÇÕES UNIDAS,4777 - ALTO PINHEIROS

ZIP CODE/CITY:

05477-000 SÃO PAULO/SP

PHONE:

11 3443-9531

FAX:

11 3443-9532

 

 

ADDRESS:

AVENIDA HIDROGÊNIO,3342 - COMPLEXO BÁSICO

ZIP CODE/CITY:

42810-000 CAMAÇARI/BA

 

 

ADDRESS:

AV VEREADOR ALFREDO NEVES,1055 - ALEMOA

ZIP CODE/CITY:

11095-510 SANTOS/SP

PHONE:

13 3299-8768

CNPJ:

42.150.391/0027-00

STATE REGISTER:

633.128.438.112

 

 

REQUESTED ADDRESS:

BR 388 - RODOVIA TABAI / CANOAS, KM,419 VIA CONTORNO 1216 - PASSO RASO

ZIP CODE/CITY:

95850-000 TRIUNFO/RS

CNPJ:

42.150.391/0010-61

STATE REGISTER:

149/0034894

 

 

ADDRESS:

RUA BENZENO,2391 - COMPLEXO BÁSICO

ZIP CODE/CITY:

42810-000 CAMAÇARI/BA

PHONE:

71 3632-4444

FAX:

71 3632-1132

 

 

ADDRESS:

III POLO PETROQUÍMICO - LOTE,4

ZIP CODE/CITY:

95853-000 TRIUNFO/RS

 

 

ADDRESS:

RUA ETENO,1582 - POLO PETROQUÍMICO - UNIDADE POLETILENO 1

ZIP CODE/CITY:

CAMAÇARI/BA

PHONE:

71 3413-3600

 

 

ADDRESS:

RUA OXIGÊNIO,765

ZIP CODE/CITY:

CAMAÇARI/BA

PHONE:

71 3413-2200

 

 

ADDRESS:

AV. AYRTON SENNA DA SILVA,2700

ZIP CODE/CITY:

09380-901 MAUA/SP

PHONE:

11 3583-2200

 

 

ADDRESS:

AV. ASSIS CHATEAUBRIND,5260 - PORTAL DA BARRA

ZIP CODE/CITY:

57010-900 MACEIO/AL

PHONE:

82 3177-5151

CNPJ:

42.150.391/0022-03

 

THE COMPANY ALSO HAS OTHER BRANCHES LOCATED IN: CABO DE SANTO AGOSTINHO/PE, TRIUNFO/RS, RIO GRANDE/RS, PORTO ALEGRE/RS, OSORIO/RS, BRASILIA/SF, IMBITUBA/SC, FLORIANOPOLIS/SC, ARAUCARIA/PR, SÃO PAULO/SP, SANTOS/SP, PAULINIA/SP, VILA VELHA/ES, TRES CORAÇÕES/MG, SALVADOR/BA, CANDEIAS/BA, CAMAÇARI/BA, MARECHAL DEODORO/AL, MACEIO/AL AND IPOJUCA.

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

MANUFACTURE OF CHEMICALS.

 

LEGAL FORM:

PUBLICLY HELD CORPORATION

 

 

INCORPORATION DATE:

12/01/1972

REGISTER DATE:

12/01/1972

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

42.150.391/0001-70

STATE REGISTER:

01.027.389

 

 

SHARE CAPITAL:

R$ 8.043.222.080,50

LAST REGISTER OF CAPITAL:

27/12/2010

 

BOARD OF DIRECTORS:

 

 

 

CARLOS JOSÉ FADIGAS DE SOUZA FILHO

PRESIDENT DIRECTOR

MARIO AUGUSTO DA SILVA

INVESTORS RELATIONS DIRECTOR

DECIO FABRICIO ODDONE DA COSTA

DIRECTOR

EDMUNDO JOSE CORREIA AIRES

DIRECTOR

LUCIANO NITRINI GUIDOLIN

DIRECTOR

MARCELO CERQUEIRA

DIRECTOR

GUSTAVO SAMPAIO VALVERDE

DIRECTOR

 

 

AUTHORIZED USE OF SIGNATURE

 

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

 

SHAREHOLDERS / PARTNERS:

 

 

 

PETRÓLEO BRASILEIRO S/A - PETROBRAS

47,03%

ODEBRECHT SERVIÇOS E PARTICIPAÇÕES S/A

50,11%

OTHERS

2,86%

 

AFFILIATES / SUBSIDIARIES:

 

 

 

BRASKEM AMERICA INC. (USA)

100,0%

BRASKEM CHILE LIMITADA (CHILE)

100,0%

BRASKEM DISTRIBUIDORA LTDA.

100,0%

BRASKEM EUROPE B.V. (HOLLAND)

100,0%

BRASKEM FINANCE LIMITED (CAYMAN ISLANDS)

100,0%

BRASKEM IDESA, S.A PROMOTORA DE INVERSIÓN (MEXICO)

65,00%

BRASKEM INCORPORATED (CAYMAN ISLANDS)

100,0%

BRASKEM IMPORTAÇÃO E EXPORTAÇÃO LTDA

100,0%

BRASKEM PARTICIPAÇÕES S.A.

100,0%

BRASKEM PETROQUÍMICA S.A (ARGENTINA)

100,0%

BRASKEM PETROQUÍMICA CHILE LIMITADA (CHILE)

100,0%

BRASKEM PP AMERICAS INC (USA)

100,0%

COMPANHIA ALAGOAS INDUSTRIAL - CINAL

100,0%

LANTANA TRADING CO. INC. (BAHAMAS)

100,0%

IDEOM TECNOLOGIA LTDA

100,0%

IQ SOLUÇÕES & QUÍMICAS S.A. - QUANTIQ

100,0%

MANPOL - MANUTENÇÃO DO POLO LTDA

 

IQAG ARMAZENS GERAIS LTDA

 

IPIRANGA QUÍMICA ARMAZÉNS GERAIS LTDA

100,0%

ISATEC - PESQUISA, DESENV. E ANÁLISES QUÍMICAS LTDA

100,0%

POLITENO EMPREENDIMENTOS LTDA

100,0%

QUATTOR PARTICIPAÇÕES S.A

100,0%

QUATTOR PETROQUÍMICA S.A

99,32%

RIO POLÍMEROS S.A

100,0%

NORFOLK TRADING S.A (URUGUAY)

100,0%

COMMOM INDUSTRIES LTD. (BRITISH VIRGIN ISLANDS)

100,0%

UNIPAR COMERCIAL E DISTRIBUIDORA S.A.

100,0%

CETREL S.A - EMPRESA DE PROTEÇÃO AMBIENTAL

53,54%

POLIETILENOS DA AMERICA S.A (VENEZUELA)

49,00%

POLIPROPILENO DEL SUR S.A (VENEZUELA)

49,00%

FUNDO DE INVESTIMENTO MULTIMERCADO CRÉDITO PRIVADO SOL

100,0%

CPN ADMINISTRAÇÃO DE BENS MOVEIS E SERVIÇOS

 

ALCLOR QUIMICA DE ALAGOAS LTDA

 

IDEOM TECNOLOGIA LTDA

 

SANSUY ADMINISTRAÇÃO PARTICIPAÇÃO REPRES

 

 

 

COMPANY'S BACKGROUND

 

STARTING THE SECOND HALF OF THE 1960S BRAZILIAN DEVELOPMENT DEMANDED SIGNIFICANT AMOUNTS OF PETROCHEMICAL PRODUCTS TO SUPPLY THE COUNTRY'S GROWING INDUSTRIALIZATION. THIS LED TO A REDIRECTION OF EXISTING RESOURCES IN ORDER TO AVOID DEPENDENCE ON IMPORTS.

 

CONSIDERING THE ECONOMIC ADVANTAGES OFFERED BY PLANNED INDUSTRIAL COMPLEXES, THE BRAZILIAN FEDERAL GOVERNMENT DECIDED TO IMPLEMENT A SECOND PETROCHEMICAL COMPLEX IN THE COUNTRY. THE FIRST BRAZILIAN PETROCHEMICAL COMPLEX WAS ALREADY OPERATING IN SÃO PAULO (PQU BEING THE BASIC PETROCHEMICALS MANUFACTURER. OTHER COMPANIES INCLUDED POLIOLEFINAS, UNION CARBIDE, ALBA, POLIBRASIL, ETC.)

 

COPENE WAS FOUNDED ON JANUARY 12, 1972 UNDER THE NAME COMPANHIA PETROQUÍMICA DO NORDESTE - COPENE LTDA. (NORTHEASTERN PETROCHEMICAL COMPANY). ITS CREATION WAS A DIRECT CONSEQUENCE OF RESOLUTION NUMBER 2/70 (JULY 21, 1970) OF THE INDUSTRIAL DEVELOPMENT COUNCIL OF THE MINISTRY FOR INDUSTRY AND COMMERCE (CDI - MIC), WHICH SET THE BASIC GUIDELINES FOR THE NORTHEASTERN PETROCHEMICAL COMPLEX, AND ALSO OF THE EXPOSIÇÃO DE MOTIVOS [RATIONALE] NUMBER 213/71, WHICH GAVE PETROQUISA (A SUBSIDIARY OF PETROBRÁS, BRAZIL'S NATIONAL OIL COMPANY, AND THUS A GOVERNMENT-OWNED COMPANY ITSELF) THE ASSIGNMENT OF "PROMOTING THE FORMATION OF A PILOT COMPANY, WHICH WILL DETAIL THE TECHNICAL AND ECONOMIC ACTIVITIES FOR THE COMPANIES COMPRISING THE PETROCHEMICAL COMPLEX, INCLUDING THE SECOND GENERATION INDUSTRIES WHICH WILL USE THE BASIC PETROCHEMICALS PRODUCED BY THE BASIC PETROCHEMICALS PRODUCING UNIT."

 

THE BRAZILIAN GOVERNMENT'S AIM TO REDUCE THE COUNTRY'S REGIONAL DIFFERENCES LED TO STUDIES FOR LOCATING THIS PETROCHEMICAL COMPLEX IN A REGION WITH A LOW INDUSTRIAL DENSITY, BUT HAVING MARKET POTENTIAL AS WELL AS RAW MATERIAL, TRANSPORTATION, AND INFRASTRUCTURE FACILITIES. THESE STUDIES POINTED TO THE STATE OF BAHIA AS BEING THE MOST FAVORABLE LOCATION. ANOTHER CONSIDERATION WAS THE FACT THAT THE STATE OF BAHIA WAS LOCATED IN NORTHEASTERN BRAZIL, A REGION WHOSE DEVELOPMENT WAS TO BE FOSTERED, CONSIDERING ITS HIGH POPULATION DENSITY.

 

ONCE THE STATE OF BAHIA WAS SELECTED, A SERIES OF FACTORS LED TO CHOOSING THE RECÔNCAVO [REGION AROUND ALL SAINTS BAY AND INCLUDING SALVADOR, THE STATE CAPITAL] AS A PREFERRED REGION, AND WITHIN IT, THE CAMAÇARI PLAINS FOR THE CONSTRUCTION OF THE BASIC COMPLEX. THIS BASIC COMPLEX WOULD BE FORMED BY THE BASIC PETROCHEMICALS PLANT (UNDER THE CHARGE OF COPENE - PETROQUÍMICA DO NORDESTE S/A), A CONSIDERABLE PART OF THE SECOND GENERATION PLANTS AND SOME FINAL TRANSFORMATION UNITS. THIS LOCATION WOULD ALSO ALLOW A CONNECTION FOR THE USE OF CHLORINE FROM SALGEMA (IN THE STATE OF ALAGOAS) AND FOR SUPPLY OF BUTADIENE TO COPERBO (IN THE STATE OF PERNAMBUCO).

 

THE SELECTED CAMAÇARI AREA HAS A MOST FAVORABLE LOCATION, BEING ONLY 40 KM (25 MILES) FROM THE CAPITAL CITY OF SALVADOR, 20 KM (12 MILES) FROM CIA (ARATU INDUSTRIAL CENTER), AND 30 KM (19 MILES) FROM RLAM (PETROBRAS' LANDULPHO ALVES REFINERY). IT HAS ACCESS TO THREE SEAPORTS: SALVADOR, MADRE DEUS (BELONGING TO PETROBRÁS), AND ARATU. THERE IS RAILWAY SERVICE TO THE SITE AND A GOOD ROAD NETWORK. IT HAS ACCESS TO THE BASINS OF THE JOANNES, JACUIPE, AND POJUCA RIVERS, TERRAIN AND CLIMAT OFFERING EXCELLENT CONDITIONS, AS WELL AS BEING PROVIDED WITH HYDROELECTRIC ENERGY FROM THE PAULO AFONSO DAM.

 

IN ACCORDANCE WITH ITS STATUTORY ATTRIBUTIONS, COPENE AVOWED ITSELF TO THE PLANNING OF AN INTEGRATED PETROCHEMICAL COMPLEX, INCLUDING IN THE MASTER PLAN EXISTING PLANTS AND PROJECTS, DETAILING THE PRODUCT SLATE AND PLANNING THE FORMATION OF THE COMPANIES THAT WOULD, IN THE FUTURE, OPERATE THE DOWNSTREAM UNITS. ON JUNE 1ST, 1973 ISOCIANATOS DO BRASIL S/A, THE FIRST DOWNSTREAM COMPANY CONSIDERED IN THE MASTER PLAN WAS FOUNDED. ON THAT SAME YEAR SITE PREPARATION WORK WAS STARTED FOR THE WHOLE INDUSTRIAL COMPLEX WHICH TODAY CONSTITUTES THE BASIC COMPLEX. COPENE DEVELOPED THE ENTIRE INFRASTRUCTURE, INCLUDING THE RAW MATERIALS AND UTILITIES DISTRIBUTION SYSTEMS.

 

ON JUNE 18, 1974 COPENE BECAME A CORPORATION. THE CONSTITUTION OF SECOND-GENERATION COMPANIES WAS DEFINED IN 1975 WHEN CONSTRUCTION OF THE COMPLEX WAS PROCEEDING AT FULL STEAM. PETROQUISA CEASED TO BE COPENE'S ONLY SHAREHOLDER. THE DOWNSTREAM COMPANIES ACQUIRED ALMOST HALF OF COPENE'S COMMON STOCK, WITH INDIVIDUAL SHARES BEING DEFINED ACCORDING TO EACH COMPANY'S SIZE AND ITS PARTICIPATION IN BASIC PETROCHEMICALS AND UTILITIES CONSUMPTION. ONE MORE STEP OF THE ORIGINAL INSTITUTIONAL MODEL OF THE COMPLEX WAS THUS ACCOMPLISHED: DOWNSTREAM COMPANIES, NOW COPENE SHAREHOLDERS, COULD TAKE PART IN THE MANAGEMENT OF THE BASIC PETROCHEMICALS AND UTILITIES PLANTS OPERATED BY COPENE.

 

IN 1976 COPENE STARTED OPERATING THE FIRST PRODUCTION UNITS IN THE UTILITIES PLANT, AND STARTED TO FURNISH STEAM, ELECTRIC ENERGY, AND TREATED WATER TO THE COMPANIES THAT STARTED PRODUCTION THAT YEAR. THESE PLANTS USED FEED STOCKS/BONDS, WHICH COULD BE IMPORTED WHILE CONSTRUCTION OF THE BASIC PETROCHEMICALS PLANT WAS BEING CONCLUDED. 1977 AND 1978 SAW THE MOST INTENSE ACTIVITY IN CONSTRUCTION, EQUIPMENT ERECTION AND PLANT STARTUP AND OPERATION.

 

THE LABOR FORCE AT THE SITE REACHED 26,000 FOR THE COMPLEX AS A WHOLE. COPENE, WITH 8,000 MEN, HAD THE LARGEST SINGLE CONTRIBUTION TO THIS TOTAL.

 

ON JUNE 29, 1978, BRAZILIAN PRESIDENT ERNESTO GEISEL, WHO HAD, IN 1972, SIGNED THE DOCUMENTS THAT CREATED COPENE, INAUGURATED COPENE AND TEN OTHER INDUSTRIES WITHIN THE BASIC COMPLEX.

 

COPENE STARTED OPERATIONS WITH A DELAY OF ONLY FOUR MONTHS IN RELATION TO THE ORIGINAL SCHEDULE. NO PROBLEMS WERE EXPERIENCED DURING STARTUP AND, IN SEPTEMBER 1978, COPENE STARTED DISTRIBUTING ETHYLENE, ITS MAIN PRODUCT.

 

AT THE END OF 1978 COPENE OFFERED SHARES TO THE GENERAL PUBLIC. THROUGH AN ISSUE OF COMMON STOCK TO THIRD PARTIES PETROQUISA [A GOVERNMENT-OWNED COMPANY] REDUCED ITS VOTING SHARE TO LESS THAN FIFTY PERCENT, THUS TRANSFORMING COPENE INTO A PRIVATE COMPANY.

 

1979 MARKED THE CONSOLIDATION OF THE NORTHEASTERN PETROCHEMICAL COMPLEX. IN MAY THAT YEAR, COPENE HAD ITS FIRST MAJOR TURNAROUND. SOME PROJECT AND EQUIPMENT FLAWS DETECTED DURING THE FIRST MONTHS OF OPERATION WERE CORRECTED. IN NOVEMBER AND DECEMBER, THE TWO FIRST INDUSTRIAL UNITS INCLUDED IN THE MASTER PLAN STARTED PRODUCTION: CPC - COMPANHIA PETROQUÍMICA DE CAMAÇARI (PRODUCING VINYL CHLORIDE AND POLYVINYL CHLORIDE) AND ACRINOR - ACRILONITRILA DO NORDESTE S/A (A PRODUCER OF ACRYLONITRILE). BASIC PETROCHEMICALS DEMAND GENERATED BY THESE TWO UNITS ALLOWED COPENE TO START 1980 OPERATING NEAR ITS DESIGN CAPACITY.

 

IN 1980 COPENE'S MANAGEMENT TURNED ITS ATTENTION TO PLANT OPTIMIZATION. ANALYSIS OF PRODUCTION DATA ALLOWED IDENTIFICATION OF BOTTLENECKS, WHICH COULD BE REMOVED AT A SMALL COST. DURING COPENE'S SECOND TURNAROUND, IN NOVEMBER 1980, THESE BOTTLENECKS WERE REDUCED, RAISING PRODUCTION TO LEVELS 10 TO 20 PERCENT ABOVE DESIGN CAPACITY. WORTH NOTING HERE IS THE CAPACITY OF COPENE'S TECHNICAL TEAM WHICH CARRIED OUT (AND CONTINUES TO DO SO) PLANT MODIFICATIONS AND CAPACITY INCREASE PROJECTS, WITH AN EVER-INCREASING USE OF IN-HOUSE AND BRAZILIAN KNOW-HOW.

 

A SUBSTANTIAL MODIFICATION IN COPENE'S INSTITUTIONAL MODEL TOOK PLACE IN THE SECOND HALF OF 1980. SEVENTEEN DOWNSTREAM COMPANIES FOUNDED NORDESTE QUÍMICA S/A - NORQUISA, WHICH INHERITED THE PARENT COMPANIES' COMMON STOCK. THIS NEW BRAZILIAN PETROCHEMICAL HOLDING COMPANY STARTED TO SHARE COPENE'S OWNERSHIP WITH PETROQUISA, EACH HOLDING ABOUT 48% PERCENT OF THE VOTING STOCK. THESE TWO COMPANIES, ONE PRIVATE AND THE OTHER GOVERNMENT-OWNED, WORK JOINTLY FOR THE COORDINATION OF INVESTMENT POLICIES IN THE COMPANIES, WHICH CONSTITUTE THE NORTHEASTERN PETROCHEMICAL COMPLEX. THIS, IN TURN, ASSURES THAT THE COMPLEX WILL GROW IN AN ORDERLY WAY, FOLLOWING MARKET GROWTH AND OBSERVING CONSIDERATIONS FOR REGIONAL AND NATIONAL DEVELOPMENT.

 

IN 1998 THE SUBJECT SHARES STARTED TO BE TRADED IN THE NEW YORK STOCK EXCHANGE AS ADR - AMERICAN DEPOSITARY RECEIPTS.

 

THE SUBJECT IS STILL OPERATING AS A LEADING COMPANY.

 

STATEMENT REGARDING CONTROL OF COPENE - PETROQUÍMICA DO NORDESTE AND THE RESTRUCTURING OF THE BRAZILIAN PETROCHEMICAL SECTOR

 

RIO DE JANEIRO, AUGUST 08, 2001 - THE FOLLOWING TEXT WAS PUBLISHED BY THE MARIANI GROUP AND THE ODEBRECHT GROUP, SHAREHOLDERS OF COPENE - PETROQUÍMICA DO NORDESTE S.A. (NYSE: PNE; BOVESPA: CPNE5), IN RESPECT OF THE CHANGE OF CONTROL OF THE COMPANY DESCRIBED THEREIN AND THE RESTRUCTURING OF THE BRAZILIAN PETROCHEMICAL SECTOR. COPENE - PETROQUÍMICA DO NORDESTE NEITHER EXPRESSES NOR IMPLIES ANY OPINION ON, OR ENDORSEMENT OF, ANY OF THE CONTENT THEREOF, AND REPORTS IT PURSUANT TO THIS FORM 6-K FOR INFORMATION PURPOSES ONLY.

 

THE MARIANI GROUP AND THE ODEBRECHT GROUP, THROUGH NOVA CAMAÇARI PARTICIPAÇÕES S.A., WERE THE WINNERS IN THE AUCTION OF THE ASSETS OF THE SO CALLED "ATIVOS ECONÔMICO S/A EMPREENDIMENTOS" ("ESAE"), CARRIED OUT IN THE CITY OF SÃO PAULO ON JULY 25, 2001, BECOMING CONTROLLERS OF NORQUISA WHICH, IN TURN, CONTROLS COPENE.

 

BACKGROUND

 

IN ORDER TO IMPROVE THE VALUE OF THE ESAE ASSETS, THE CENTRAL BANK, AS LIQUIDATOR OF THE BANCO ECONÔMICO, STRUCTURED A PROCESS THAT CONTEMPLATED THE SALE, TOGETHER WITH THE SALE OF THE ESAE ASSETS, OF A BLOCK OF ASSETS, INCLUDING THE PARTICIPATIONS OF OTHER COMPANIES IN NORQUISA, THUS FORMING THE SO CALLED "GRUPO PROTOCOLO" ("PROTOCOL GROUP"). IT THEN ANNOUNCED TWO AUCTIONS FOR THE SALE OF THE PACKAGE OF PARTICIPATIONS, IN DECEMBER 2000 AND MARCH OF 2001, BOTH FRUSTRATED.

THE ODEBRECHT AND MARIANI GROUPS, AS LARGE INVESTORS IN THE NORTHEASTERN CENTER (CAMAÇARI AND ALAGOAS), HAD A GREATER INTEREST THAT THE DIFFICULTIES THAT INHIBITED THE DEVELOPMENT OF COPENE BE OVERCOME, AND FOR THIS REASON DECIDED TO CONTRIBUTE DECISIVELY TO A SOLUTION. WITH THIS AIM, THE ODEBRECHT AND MARIANI GROUPS PRESENTED A PURCHASE PROPOSAL OF THE SO CALLED ESAE ASSETS TO THE CENTRAL BANK, WHICH LED THE CENTRAL BANK TO CALL A THIRD AUCTION, WHICH WAS HELD SUCCESSFULLY ON JULY 25TH.

 

DESCRIPTION OF THE ASSETS ACQUIRED

 

DECLARED WINNER OF THE 3RD AUCTION AND HAVING EXERCISED THE SUBSEQUENT RIGHTS OF JOINT SALE, NOVA CAMAÇARI BECAME HOLDER OF ALL THE COMMON SHARES ISSUED BY CONEPAR - COMPANHIA NORDESTE DE PARTICIPAÇÕES, AND OF PROPPET S.A. CONEPAR HOLDS THE CONTROL (66.67% OF VOTING CAPITAL) OF POLIALDEN PERTOQUÍMICA S.A. AND AN IMPORTANT PARTICIPATION OF 31% IN THE CAPITAL OF POLITENO S.A. INDÚSTRIA E COMÉRCIO, BOTH SECOND GENERATION OPERATIONAL COMPANIES, PRODUCERS OF THERMOPLASTIC RESINS.

 

TRIKEM EXERCISED ITS RIGHT OF JOINT SALE AGAINST ODEBRECHT QUÍMICA, BY SIGNING A CONTRACT OPTION FOR THE SALE OF 16.03% OF THE VOTING CAPITAL OF NORQUISA, WHICH WILL BE EXERCISED WITHIN THE 120 DAY CONTRACTUAL PERIOD.

WITHIN THE CONTEXT OF THE 3RD AUCTION, ODEBRECHT QUÍMICA ACQUIRED 23.69% OF THE COMMON SHARES OF NORQUISA, HELD INDIRECTLY BY POLIALDEN, FOR R$ 242 MILLION - PROPORTIONATE VALUE RESULTING FROM THE EXERCISE OF THE JOINT SALE OF TRIKEM AND PRONOR - THUS CONSOLIDATING THE CONTROL OF NORQUISA, WITH THE MARIANI GROUP. THE PARTICIPATION OF THE TWO GROUPS IN THE NORQUISA VOTING CAPITAL IS NOW 55.78%. NORQUISA HOLDS 58.41% OF THE VOTING CAPITAL OF COPENE.

 

STILL IN THE CONTEXT OF THE 3RD AUCTION, NOVA CAMAÇARI ACQUIRED, AS A RESULT OF THE EXERCISE OF THE JOINT SALE, 31.92% OF CONEPAR CAPITAL, HELD INDIRECTLY BY THE ODEBRECHT AND MARIANI GROUPS, AND 11.76% HELD BY BNDESPAR, NOW HOLDING 100% OF CONEPAR CAPITAL. FURTHERMORE, BY THE EXERCISE OF THE JOINT RIGHT OF SALE HELD BY COMPANIES CONTROLLED BY THE ODEBRECHT AND MARIANI GROUPS, NOVA CAMAÇARI ACQUIRED 100% OF THE CAPITAL OF PROPPET.

 

WITH PRIOR AUTHORIZATION OF THE BOARD OF ADMINISTRATION, AFTER THE 3RD AUCTION, COPENE ACQUIRED NOVA CAMAÇARI, ASSUMING ASSETS ACQUIRED IN THE CONTEXT OF THE AUCTION - ESAE, INTERCAPITAL, DIRECT PARTICIPATION OF BNDESPAR IN CONEPAR AND PROPPET - AS WELL AS RESPECTIVE LOANS, FOR THE AMOUNT OF R$1,417.5 MILLION.

 

THE LARGEST PETROCHEMICAL COMPANY IN SOUTH AMERICA-RESULTING FROM THE INTEGRATION OF COPENE AND OTHER ASSETS ACQUIRED BY THE ODEBRECHT-MARIANI CONSORTIUM AT THE CRACKER'S JULY 25 AUCTION-WILL BE CALLED BRASKEM S.A.

 

BRASKEM FIGURES AS THE LARGEST PETROCHEMICAL OPERATION IN LATIN AMERICA AND AMONG THE FIVE LARGEST PRIVATE COMPANIES IN BRAZIL. WITH A VERTICALIZED STRUCTURE INTEGRATING THE FIRST AND THE SECOND PETROCHEMICAL GENERATIONS, BRASKEM REPORTS ANNUAL EARNINGS OF OVER R$ 8.9 BILLION (2002). THE COMPANY EMPLOYS DIRECTLY OVER 2.800 PEOPLE, ACHIEVING A PRODUCTION OF 5 MILLION TONS OF PRIMARY BASE, SECONDARY AND INTERMEDIATE PETROCHEMICAL PRODUCTS.

 

COORDINATED BY ODEBRECHT-MARIANI, BRASKEM ALSO COUNTS ON DIRECT AND INDIRECT PARTICIPATION OF NORQUISA, HOLDING THAT BELONGS TO BRASKEM GROUP, AND SHAREHOLDERS LIKE, PETROQUISA (A PETROBRAS PETROCHEMICAL SUBGROUP), PETROS (PETROBRAS) AND PREVI (BANK OF BRAZIL) PENSION FOUNDS. SHARES OF THE COMPANY ARE LISTED AND TRADED ON THE SÃO PAULO (BOVESPA) AND THE NEW YORK STOCK EXCHANGES, AND WILL SUBSTITUTE COPENE´S. WITH 13 INDUSTRIAL FACILITIES LOCATED IN ALAGOAS, BAHIA, SÃO PAULO AND RIO GRANDE DO SUL, BRASKEM PRODUCES PRIMARY BASE PETROCHEMICALS SUCH AS ETHYLENE, PROPYLENE, BENZENE, CAPROLACTAM, DMT AND TERMOPLASTIC RESINS (POLYPROPYLENE, POLYETHYLENE, PVC AND PET), GAS, UHMW-PE (AN ENGINEERING PLASTIC) AND GLP.

 

ON MARCH 31, 2003 THE SUBJECT TOOK OVER THE COMPANIES NITROCARBONO S/A, ECONOMICO S/A EMPREENDIMENTOS AND OPP QUIMICA S/A.

 

IN MAY 2004 SUBJECT TOOK OVER THE COMPANY COPENE MONÔMEROS ESPECIAIS S/A.

 

ACCORDING TO EXTRAORDINARY GENERAL MEETING HELD ON JANUARY 12, 2004 IT WAS APPROVED THE PARTIAL SPLIT OF ODEBRECHT QUÍMICA S.A. ("ODEQUI") WITH TRANSFERENCE OF THE SPLITTING PART TO THE SUBJECT.

 

ON JANUARY 15, 2004, THE SUBJECT'S SHAREHOLDERS APPROVED THE TAKEOVER OF TRIKEM S/A BY THE SUBJECT COMPANY.

 

REMARK:

 

BRASKEM MERGES POLITENO WITH AND INTO ITSELF (SOURCE - BRASKEM´S WEB SITE PUBLIC ANNOUNCEMENTS)

 

SÃO PAULO, BRASIL, APRIL 2, 2007 --- A BRASKEM (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK), LEADER IN THE THERMOPLASTIC RESINS SEGMENT IN LATIN AMERICA AND THE SECOND LARGEST BRAZILIAN INDUSTRIAL COMPANY OWNED BY THE PRIVATE SECTOR, ANNOUNCES THAT THE MERGER OF POLITENO WITH AND INTO ITSELF WAS APPROVED BY THE SHAREHOLDERS OF BOTH COMPANIES IN EXTRAORDINARY SHAREHOLDERS' MEETINGS HELD TODAY. BRASKEM THEREFORE ADVANCES ONE STEP FORWARD IN ITS GROWTH WITH VALUE CREATION PROCESS.

"THE MERGER OF POLITENO WAS DESIGNED TO ALIGN THE INTERESTS OF ALL SHAREHOLDERS AND WILL ALLOW SHAREHOLDERS OF POLITENO THAT DECIDE TO BECOME SHAREHOLDERS OF BRASKEM FULL ACCESS TO THE BENEFITS OFFERED BY BRASKEM TO ALL OF ITS SHAREHOLDERS,

 

SUCH AS 100% TAG-ALONG RIGHTS IN THE EVENT OF A CHANGE OF CONTROL," COMMENTED CARLOS FADIGAS, VICE PRESIDENT OF FINANCES AND INVESTOR RELATIONS OF BRASKEM. PRIOR TO THE MERGER, BRASKEM OWNED 100% OF POLITENO'S VOTING SHARE CAPITAL AND APPROXIMATELY 96.2% OF ITS TOTAL SHARE CAPITAL. COMMENCING AS OF TOMORROW, POLITENO'S PREFERRED SHAREHOLDERS CAN EXCHANGE THEIR POLITENO SHARES FOR BRASKEM'S CLASS A PREFERRED SHARES, AT AN EXCHANGE RATIO OF 1,656 OF POLITENO SHARES FOR EACH BRASKEM'S CLASS A

PREFERRED SHARE. THIS EXCHANGE RATIO IS BASED ON AN APPRAISAL REPORT WITH RESPECT TO BOTH COMPANIES PREPARED BY PRICEWATERHOUSECOOPERS AUDITORES INDEPENDENTES, AND REPRESENTS A 8.57% PREMIUM FOR SHAREHOLDERS OF POLITENO OVER THE FAIR MARKET VALUE OF THESE SHARES BASED ON THE RESPECTIVE SHAREHOLDERS' EQUITY OF THESE COMPANIES. TO MAINTAIN THE LEGALLY REQUIRED RATIO OF BRASKEM'S COMMON AND PREFERRED SHARES (1/3 AND 2/3, RESPECTIVELY), BRASKEM'S SHAREHOLDERS APPROVED THE CONVERSION OF 486,530 CLASS A PREFERRED SHARES INTO COMMON SHARES, AS WELL AS THE ISSUANCE OF 1,533,670 CLASS A PREFERRED SHARES. AS A RESULT, BRASKEM'S SHARE CAPITAL WILL INCREASE BY R$19.2 MILLION, AND BRASKEM'S FREE FLOAT WILL BE MAINTAINED AT APPROXIMATELY 53% OF TOTAL CAPITAL. COMMENCING AS OF TOMORROW (APRIL 3, 2007), MINORITY SHAREHOLDERS OF POLITENO HAVE UNTIL MAY 2, 2007 TO EXERCISE THEIR APPRAISAL RIGHTS, IF THEY DO NOT EXCHANGE THEIR SHARES FOR BRASKEM'S SHARES. THE SHAREHOLDER THAT HAS SHARES AT CBLC - COMPANHIA BRASILEIRA DE LIQUIDAÇÃO E CUSTÓDIA (BRAZILIAN CLOSING AND TRUSTEE COMPANY), AND THAT WANTS TO EXERCISE THIS RIGHT SHOULD CONTACT ITS CHOSEN SECURITIES TRADER INFORMING OF ITS INTENTION TO EXERCISE THE APPRAISAL RIGHT THROUGH AN SPECIFIC FORM TO BE GIVEN BY CBLC. IF THE SHARES ARE REGISTERED AT BANCO ITAÚ (ITAU BANK), THE SHAREHOLDER SHOULD CONTACT ANY BRANCH TO FILL AN SPECIFIC FORM TO BE GIVEN BY BANCO ITAÚ. POLITENO SHAREHOLDERS THAT EXERCISE THEIR APPRAISAL RIGHTS WILL RECEIVE A CASH PAYMENT OF R$7.543 PER LOT OF 1,000 SHARES ON MAY 15, 2007.

 

BRASKEM ANNOUNCES THE CONCLUSION OF THE ACQUISITION OF IPIRANGA GROUP PETROCHEMICAL ASSETS

 

SÃO PAULO, FEBRUARY 27, 2008 - BRASKEM (BOVESPA: BRKM5; NYSE: BAK; LATIBEX:

XBRK) (THE "COMPANY"), THE LEADING COMPANY IN THE THERMOPLASTIC RESINS INDUSTRY IN LATIN AMERICA AND THE THIRD-LARGEST PETROCHEMICAL PRODUCER IN THE AMERICAS, ANNOUNCES

THAT 60% OF THE PETROCHEMICAL ASSETS OF THE IPIRANGA GROUP, CONSISTING OF THE 60% INTEREST IN IPIRANGA QUÍMICA, WERE EFFECTIVELY TRANSFERRED TO THE COMPANY.

 

AS A RESULT OF THE TRANSACTION, BRASKEM NOW HOLDS A DIRECT INTEREST OF 60% IN IPIRANGA QUÍMICA, AN INDIRECT INTEREST OF 60% IN IPIRANGA PETROQUÍMICA, AND A DIRECT AND INDIRECT INTEREST OF 62.7% IN COPESUL. THE REMAINING 40% OF IPIRANGA QUÍMICA WERE DELIVERED TO PETROBRAS.

 

THE CONCLUSION OF THE ACQUISITION OF THESE PETROCHEMICAL ASSETS ALLOWS FOR THE IMPLEMENTATION OF THE INVESTMENT AGREEMENT ENTERED INTO WITH PETROBRAS LAST NOVEMBER. THROUGH THIS AGREEMENT PETROBRAS AND PETROQUISA INTERESTS, CORRESPONDING TO 40% OF THE PETROCHEMICAL ASSETS OF IPIRANGA, 40% OF PETROQUÍMICA PAULÍNIA, AS WELL AS THE OPTION TO INCORPORATE PETROQUÍMICA TRIUNFO, WILL BE INCORPORATED INTO BRASKEM, IN EXCHANGE FOR APPROXIMATELY 103.4 MILLION SHARES OF BRASKEM.

 

THE SHAREHOLDERS´ EXTRAORDINARY MEETING HELD ON SEPTEMBER 11, 2008 HAVE APPROVED THE TAKEOVER OF COPESUL BY IPQ. CONTINUING THE PROCESS OF ACQUIRING THE PETROCHEMICAL ASSETS OF IPIRANGA GROUP, THE IPQ, PETROQUÍMICA PAULINIA SA AND SPUN OFF PORTION OF IQ, WERE TAKEN OVER ON SEPTEMBER 30, 2008.

 

BRASKEM S.A. AND SUNOCO, INC.. (R & M) ( "SUNOCO"), AAMERICAN OIL COMPANY, SIGNED AGREEMENT FOR ACQUISITION OF BRASKEM SUNOCO CHEMICALS, INC.. (SUNOCO CHEMICALS). FOR THIS SALE, WHICH WILL BE COMPLETED IN 60 DAYS, THE SUNOCO RECEIVE THE IMPORTANCE OF $ 350 MILLION. THIS TRANSACTION REPRESENTS AN IMPORTANT STEP IN THE INTERNATIONALIZATION PROCESS OF BRASKEM.

 

SUNOCO CHEMICALS HAS CAPACITY TO PRODUCE 950 THOUSAND TONS PER YEAR OF PP. THE COMPANY IS HEADQUARTERED IN PHILADELPHIA, PENNSYLVANIA, AND HAS THREE INDUSTRIAL UNITS, LOCATED IN LA PORTE - TEXAS, MARCUS HOOK - NEAL AND PENNSYLVANIA - WEST VIRGINIA.

 

BEYOND THE INDUSTRIAL UNITS, THE ACQUISITION ALSO INCLUDES A TECHNOLOGY CENTER IN PITTSBURGH, PENNSYLVANIA.

 

ON APRIL 30 AND MAY 05, 2009, THE EXTRAORDINARY GENERAL MEETINGS OF BRASKEM E DA PETROQUÍMICA TRIUNFO S.A. ("TRIUNFO"), RESPECTIVELY, APPROVED THE TAKEOFF OF TRIUMPH. THIS WAS THE LAST STEP OF THE AGREEMENT DONE ON NOVEMBER 30, 2007 BETWEEN PETROBRAS - PETRÓLEO BRASILEIRO S.A. ("PETROBRAS"), PETROBRAS QUÍMICA S.A. ("PETROQUISA"), ODEBRECHT S.A. ("ODEBRECHT") AND NORDESTE QUÍMICA S.A. ("NORQUISA")

 

THE NET ASSETS OF TRIUNFO, EVALUATE THE BOOK VALUE, AMOUNTED TO R$ 117.990.000. FROM THIS AMOUNT, R$ 97.379.000 WERE INTENDED TO INCREASE THE SHARE CAPITAL OF THE COMPANY AND R$ 20.611.000 WERE INTENDED FOR THE CAPITAL RESERVE ACCOUNT. WERE ISSUED 13,387,157 CLASS "A" PREFERRED SHARES FROM BRASKEM AND DELIVERED TO THE STOCKHOLDERS OF TRIUNFO. HE WAS ASSIGNED 0.210428051882238 PREFERRED CLASS "A" FROM BRAKEM FOR EVERY 1 (ONE) COMMON OR PREFERRED CLASS "A" SHARE OF TRIUMPH.

 

AFTER THIS OPERATION, PETROBRAS, THROUGH ITS SUBSIDIARY PETROQUISA, HOLDS 59,014,254 COMMON SHARES AND 72,966,174 PREFERRED CLASS "A" SHARES, EQUIVALENT TO 25.3% AND 31.0% OF TOTAL CAPITAL AND VOTING IN THE BRASKEM RESPECTIVELY.

 

ON JANUARY 22, 2010, THE COMPANY ANNOUNCED THE CONCLUSION OF NEGOTIATIONS THAT WILL RESULT IN THE ACQUISITION OF QUATTOR PARTICIPAÇÕES S.A. ("QUATTOR"),THROUGH AN INVESTMENT AGREEMENT BETWEEN ODEBRECHT, PETROBRAS, BRASKEM AND UNIPAR - UNIÃO DE INDUSTRIAS PETROQUÍMICAS S.A. ("UNIPAR").

 

THE AGREEMENT WILL ALLOW PETROBRAS TO CONSOLIDATE ITS MAIN PETROCHEMICAL ASSETS IN BRASKEM, WHICH WILL REMAINS A PUBLICLY HELD CORPORATION AND EXPAND ITS CAPACITY. THE INVESTMENT AGREEMENT WILL BE IMPLEMENTED AS FOLLOWS:

 

(I) IN DECEMBER 2009, HAS BEEN CREATED THE BRK HOLDING, FURTHER WAS CONCENTRATED THE WHOLE ORDINARY SHARES ISSUED FROM BRASKEM BELONGING TO ODEBRECHT AND PETROBRAS.

 

(II) IN MARCH AND APRIL 2010, ODEBRECHT AND PETROBRAS INCREASE THE CAPITAL OF BRK IN R $ 3.500.000.

 

(III) THE CAPITAL INCREASE IN APRIL 2010 OF BRASKEM TO BE DONE IN THE FORM OF SUBSCRIPTION FUNDS, THROUGH THE ISSUANCE OF CLASS "A" COMMON SHARES.

 

(IV) ACQUISITION FROM BRASKEM, IN APRIL 2010, ALL THE SHARES OF QUATTOR HELD BY UNIPAR. THESE SHARES CORRESPONDS TO 60% OF TOTAL VOTING CAPITAL OF QUATTOR. FROM THAT DATE BRASKEM WILL HOLD THE CORPORATE CONTROL OF QUATTOR AND ITS SUBSIDIARIES.

 

(V) ACQUISITION, BRASKEM, TO BE DONE IN MAY 2010, THE WHOLE SHARE CAPITAL OF UNIPAR COMERCIAL E DISTRIBUIDORA S.A. ("UNIPAR COMERCIAL") HELD BY UNIPAR UNIÃO DE INDÚSTRIAS PETROQUÍMICAS S.A. ("UNIPAR")

 

(VI) ACQUISITION, FROM BRASKEM, TO BE DONE IN MAY 2010, 66% OF THE VOTING AND SHARE CAPITAL OF POLIBUTENOS S.A. INDÚSTRIAS QUÍMICAS ("POLIBUTENOS") HELD BY UNIPAR AND CHEVRON ORONITE DO BRASIL LTDA.. THE REMAINING PORTION OF THE TOTAL VOTING CAPITAL (33%) OF POLYBUTENE BELONGS QUATTOR.

 

(VII) TAKEOVER BY BRASKEM, TO BE DONE DURING THE 2ND QUARTER OF 2010, OF THE REMAINING EMISSION SHARES OF QUATTOR.

 

(VIII) INITIAL PUBLIC OFFERING, FORECAST TO HAPPEN DURING THE 2ND QUARTER OF 2010, FOR ACQUISITION OF OUTSTANDING SHARES OF QUATTOR PETROQUÍMICA.

 

ADDITIONALLY, AN AGREEMENT DEAL BETWEEN PETROBRAS, ODEBRECHT AND BRASKEM GIVES BRASKEM THE RIGHT TO PARTICIPATE AS PARTNER OF THE PROJECTS OF PETROCHEMICAL COMPLEX OF THE STATE OF RIO DE JANEIRO (COMPLEXO PETROQUÍMICO DO ESTADO DO RIO DE JANEIRO - COMPERJ)- AND PETROCHEMICAL COMPLEX OF SUAPE (COMPLEXO PETROQUÍMICO DE SUAPE) IN PERNAMBUCO.

 

ON SEPTEMBER 30, 2008 SUBJECT TOOK OVER THE COMPANY IPIRANGA PETROQUÍMICA S/A.

 

IN MAY 2009 SUBJECT TOOK OVER THE COMPANY PETROQUÍMICA TRIUNFO S/A, CNPJ 90.751.025-10.

 

IN DECEMBER 2010 SUBJECT TOOK OVER THE COMPANY CIA ALAGOAS INDL CINALA, CNPJ 08.444.655-60.

 

FURTHER DETAILS ARE SO FAR NOT KNOWN.

 

PUBLIC INFORMATION:

 

PROTESTS:

 

44  PROTESTS,TOTAL AMOUNT R$ 482.843,39

    DATE OF FIRST PROTEST: 19/01/2010  R$ 2.700,00

    DATE OF HIGHEST PROTEST: 22/04/2013  R$ 108.468,15

 

DETAILS OF LATEST PROTESTS:

 

NOTARY OFFICE:

DATE:

VALUE:

CARTORIO DE TRIUNFO/RS

08/12/2014

R$ 2.538,23

5º CARTORIO DE SÃO PAULO/SP

19/12/2014

R$ 6.000,00

2º CARTORIO DE SALVADOR/BA

02/12/2014

R$ 21.000,00

4º CARTORIO DE SALVADOR/BA

10/12/2014

R$ 287,10

CARTORIO DE TRIUNFO/RS

25/11/2014

R$ 4.386,92

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

16

FEDERAL LAWSUITS

07/10/14

8ª VARA DE SALVADOR/BA

10

STATE LAWSUITS

20/02/14

 VARA DE TRIUNFO/RS

 

FINANCIAL INFORMATION

 

GENERAL BALANCE SHEETS AS OF 30/09/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

ASSETS

 

 

 

CURRENT:

30/09/2014

31/12/2013

31/12/2012

 

 

 

 

CASH AND BANKS

2.274.380

2.425.078

1.627.928

INVESTMENTS

102.239

86.535

155.535

CLIENTS

4.551.460

3.814.830

1.834.491

ACCOUNTS RECEIVABLE

173.491

141.360

761.450

DIVIDENDS RECEIVABLES

79.208

78.031

130.145

INVENTORY

2.974.530

2.848.700

2.478.550

RECOVERABLE TAXES

1.272.096

1.246.858

1.005.842

PRE PAID EXPENSES

70.776

19.778

14.153

CREDIT WITH RELATED PARTIES

52.128

100.173

13.906

OTHER CREDITS

 

28.951

160.981

DERIVATIVES OPERATIONS

26.446

 

 

 

----------------

----------------

----------------

TOTAL CURRENT ASSETS

11.576.754

10.790.294

8.182.981

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

INVESTMENTS

33.277

20.774

34.088

CLIENTS

11.988

60.328

35.710

DEFERRED TAXES

912.637

674.273

1.100.611

INTERCOMPANY CREDITS

95.712

404.668

988.589

RECOVERABLE TAXES

793.979

899.751

1.026.391

JUDICIAL DEPOSITS

195.411

194.397

164.443

INVENTORY

49.346

116.714

 

OTHER CREDITS

288.255

250.805

199.115

 

----------------

----------------

----------------

TOTAL LONG-TERM RECEIVABLES

2.380.605

2.621.710

3.548.947

 

FIXED ASSETS:

 

 

 

 

 

 

 

INVESTMENTS

11.197.153

10.485.494

9.598.219

FIXED ASSETS

11.622.125

11.650.667

11.794.385

INTANGIBLE

2.216.753

2.225.326

2.241.565

 

----------------

----------------

----------------

TOTAL FIXED ASSETS

25.036.031

24.361.487

23.634.169

 

================

================

================

TOTAL ASSETS

38.993.390

37.773.491

35.366.097

 

LIABILITIES:

 

 

 

CURRENT:

30/09/2014

31/12/2013

31/12/2012

 

 

 

 

SOCIAL / LABOR OBLIGATIONS

317.845

320.548

249.275

SUPPLIERS

8.918.789

8.845.414

6.446.898

TAX LIABILITIES

334.491

316.408

245.173

LOANS AND FINANCING

1.867.402

1.283.046

1.887.811

DEBT WITH RELATED PARTIES

278.444

127.629

206.991

DIVIDENDS

1.729

129.022

2.160

ADVANCE FROM CLIENTS

39.991

38.274

257.079

ACCOUNTS PAYABLE

72.179

54.501

29.478

DERIVATIVES OPERATIONS

10.619

20.751

293.378

PROVISIONS

51.807

158.122

11.930

OTHER DEBTS

 

60.991

147.175

 

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

11.893.296

11.354.706

9.777.348

 

LONG TERM LIABILITIES:

 

 

 

 

 

 

 

LOANS AND FINANCING

7.355.763

11.721.414

10.534.287

RELATED COMPANIES

10.023.105

5.148.743

3.667.754

DERIVATIVES OPERATIONS

481.726

396.040

 

TAXES AND CONTRIBUTIONS

 

839.531

1.059.225

TAX INCENTIVES

806.126

9.274

10.405

ACCOUNTS PAYABLE

459.702

281.646

343.652

DEFERRED TAXES

 

 

1.015.743

PROVISIONS

214.121

375.220

144.782

ADVANCE FROM CLIENTS

32.169

53.807

80.463

PROV./LOSSES IN INVESTMENTS

225.004

 

119.375

 

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

19.597.716

18.825.675

16.975.686

 

NET EQUITY:

 

 

 

 

 

 

 

SHARE CAPITAL

8.043.222

8.043.222

8.043.222

CAPITAL RESERVES

232.430

232.430

797.979

PROFIT RESERVES

55.307

410.149

 

ACCRUED PROFIT (LOSS)

823.935

 

-565.549

COMPREHENSIVE INCOME

-1.652.516

-1.092.691

337.411

 

----------------

----------------

----------------

TOTAL NET EQUITY

7.502.378

7.593.110

8.613.063

 

================

================

================

TOTAL LIABILITIES

38.993.390

37.773.491

35.366.097

 

PROFIT AND LOSS ACCOUNTS AS OF 30/09/2014, 31/12/2013 AND 31/12/2012.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

30/09/2014

31/12/2013

31/12/2012

 

 

 

 

NET SALES

19.575.668

23.542.490

20.634.400

(-) COST OF SOLD GOODS

17.214.864

20.469.552

18.217.333

 

----------------

----------------

----------------

GROSS PROFIT

2.360.804

3.072.938

2.417.067

OPERATING REVENUE (EXPENSE)

-209.209

-932.183

-683.980

FINANCIAL REVENUE(EXPENSE)

-1.314.850

-1.395.516

-3.040.333

 

----------------

----------------

----------------

OPERATIONAL PROFIT (LOSS)

836.745

745.239

-1.307.246

CONTRIBUTION/INCOME TAX

-33.963

-235.542

576.103

 

----------------

----------------

----------------

NET PROFIT (LOSS)

802.782

509.697

-731.143

 

RATIOS:

30/09/2014

31/12/2013

31/12/2012

 

QUICK RATIO

,72

 

,70

 

,58

 

CURRENT RATIO

,97

 

,95

 

,84

 

ACCOUNTS RECEIVABLE TURNOVER

4,30

TIMES

6,17

TIMES

11,25

TIMES

DAYS' SALES IN RECEIVABLES

62,78

DAYS

58,33

DAYS

32,01

DAYS

INVENTORY TURNOVER

5,79

TIMES

7,19

TIMES

7,35

TIMES

ACCOUNTS PAYABLE PERIOD

139,88

DAYS

155,57

DAYS

127,40

DAYS

RETURN ON ASSETS

,50

TIMES

,62

TIMES

,58

TIMES

SALES TURNOVER ON NET EQUITY

2,61

TIMES

3,10

TIMES

2,40

TIMES

NET WORTH TIE-UP

1,55

 

1,53

 

1,37

 

INDEBTEDNESS

4,20

 

3,97

 

3,11

 

EQUITY RATIO

19,24

%

20,10

%

24,35

%

WORKING CAPITAL RATIO

-2,66

%

-4,97

%

-16,31

%

GENERAL SOLVENCY

1,24

 

1,25

 

1,32

 

RETURN ON NET EQUITY

10,70

%

6,71

%

-8,49

%

RETURN ON SALES (PROFIT MARGIN)

4,10

%

2,17

%

-3,54

%

GROSS PROFIT MARGIN

12,06

%

13,05

%

11,71

%

OPERATIONAL RESULT

4,27

%

3,17

%

-6,34

%

SALES TURNOVER ON LIABILITIES

1,65

TIMES

2,07

TIMES

2,11

TIMES

FOREIGN CURRENCY ON ASSETS

 

 

 

 

 

 

FOREIGN CURRENCY ON LIABILITIES

 

 

 

 

 

 

 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 2,64

 - OFFICIAL RATE ON 13/01/2015

US$ 1,00 = R$ 2,45

 - OFFICIAL RATE ON 30/09/2014

US$ 1,00 = R$ 2,34

 - OFFICIAL RATE ON 31/12/2013

US$ 1,00 = R$ 2,04

 - OFFICIAL RATE ON 31/12/2012

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS.

 

THE ANNUAL FIGURES FOR 2013 SHOWS A SATISFACTORY FINANCIAL STANDING. IT SHOWED VERY HIGH LEVEL OF INDEBTEDNESS AND LOW LIQUIDITY. ON THE OTHER HAND IT SHOWED GROWING SALES AND MADE PROFIT.

 

THE QUARTERLY FIGURES FOR SEPTEMBER 2014 STILL SHOW HIGH LEVEL OF INDEBTEDNESS AND LOW LIQUIDITY. ON THE OTHER HAND, IT SHOWS GROWING SALES TREND AND PROFITABILITY.

 

IT IS WORTH TO COMMENT THAT THE SUBJECT BELONGS TO TWO LARGE-SIZED CONGLOMERATES KNOWN BY ITS HUGE FINANCIAL STRENGTH THEREFORE SUBJECT IS NOT LIKELY TO FACE FINANCIAL PROBLEMS.

 

REAL ESTATE:

 

   OWNED PREMISES ARE VALUED AT R$ 1.447.500.000,00

 

VEHICLES:

 

   NOT AVAILABLE

 

MACHINES:

 

   OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 14.080.236.000,00

 

INSURANCE

 

NOT AVAILABLE.

 

BANKING REFERENCES

 

 

 

CITY:

BANCO CITIBANK S/A

 

CAMAÇARI/SALVADOR/BA

BANCO ITAÚ S/A

 

CAMAÇARI/SALVADOR/BA

BANCO DO BRASIL S/A

 

CAMAÇARI/SALVADOR/BA

BANCO BRADESCO S/A

 

CAMAÇARI/SALVADOR/BA

BANCO ITAUBANK SA

 

CAMAÇARI/SALVADOR/BA

BANCO REAL (SANTANDER) S/A

 

CAMAÇARI/SALVADOR/BA

 

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

 

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK"). DATE RESEARCHED JANUARY 13, 2015.

 

ACTIVITIES COMMENTS

 

BRASKEM S.A. IS A PUBLICLY-HELD CORPORATION HEADQUARTERED IN CAMAÇARI, STATE OF BAHIA, WHICH, TOGETHER WITH ITS SUBSIDIARIES AND JOINTLY-CONTROLLED SUBSIDIARIES, OPERATES 35 INDUSTRIAL UNITS, 28 OF WHICH ARE LOCATED IN THE BRAZILIAN STATES OF ALAGOAS, BAHIA, RIO DE JANEIRO, RIO GRANDE DO SUL AND SÃO PAULO, FIVE ARE LOCATED IN THE UNITED STATES, IN THE STATES OF PENNSYLVANIA, TEXAS AND WEST VIRGINIA AND TWO ARE LOCATED IN GERMANY. THESE UNITS PRODUCE BASIC PETROCHEMICALS - SUCH AS ETHYLENE, PROPYLENE BUTADIENE, TOLUENE, XYLENE AND BENZENE, AS WELL AS GASOLINE AND LPG (LIQUEFIED PETROLEUM GAS) - AND THERMOPLASTIC RESINS - POLYETHYLENE, POLYPROPYLENE AND POLYVINYL CHLORIDE ("PVC"). ADDITIONALLY, BRASKEM IS ALSO ENGAGED IN THE IMPORT AND EXPORT OF CHEMICALS, PETROCHEMICALS AND FUELS, THE PRODUCTION, SUPPLY AND SALE OF UTILITIES SUCH AS STEAM, WATER, COMPRESSED AIR, INDUSTRIAL GASES, AS WELL AS THE PROVISION OF INDUSTRIAL SERVICES AND THE PRODUCTION, SUPPLY AND SALE OF ELECTRIC ENERGY FOR ITS OWN USE AND USE BY OTHER COMPANIES. BRASKEM ALSO INVESTS IN OTHER COMPANIES, EITHER AS A PARTNER OR SHAREHOLDER.

 

IT IS SOUTH AMERICA'S LARGEST BASIC PETROCHEMICALS PRODUCER AND RANKS AMONG THE TEN LARGEST PLANTS OF ITS KIND AT A SINGLE SITE IN THE WHOLE WORLD.

 

NATIONAL INDUSTRY CLASSIFICATION CODE(S) (CNAE):

20.21-5-00 – MANUFACTURE OF BASIC PETROCHEMICAL PRODUCTS

 

IMPORT AND EXPORT:

 

   IMPORTS FROM:

UNITED STATES, ENGLAND, GERMANY, FRANCE, HOLLAND, ARGENTINA, ITALY, JAPAN AND CANADA.

 

   EXPORTS TO:

SOUTH AMERICA, ASIA, UNITED STATES AND EUROPE.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

 

 

ATLAS PLÁSTICA S/A

 

 

DETEN QUÍMICA S/A

 

 

DOW BRASIL NORDESTE LTDA

 

 

ELEKEIROZ S/A

 

 

NITROCARBONO

 

 

OPP S/A

 

 

OXITÊNO NORDESTE S/A

 

 

PETROFLEX INDÚSTRIA E COMÉRCIO S/A

 

 

PIRAMIDAL TERMOPLÁSTICOS LTDA

 

 

POLIALDEN PETROQUÍMICA S/A

 

 

POLIBRASIL RESINAS S/A

 

 

POLITENO INDÚSTRIA E COMÉRCIO S/A

 

 

PROPEX DO BRASIL LTDA

 

 

TETRA PAK LTDA

 

 

TETROFLEX/CABO

 

 

ZARAPLAST S/A

 

 

 

FOREIGN CLIENTS:

 

 

CPN INCORPORATED LIMITED

 

 

 

STAFF:

 

THE COMPANY HAS: 7807 EMPLOYEE(S)

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS AN OLD AND WELL-ESTABLISHED COMPANY IN BUSINESS SINCE THE 1972. IT BELONGS TO TWO LARGE-SIZED CONGLOMERATES WHICH HAVE HUGE FINANCIAL AND OPERATES WITH A HIGH SCALE OF ACTIVITIES AND A GOOD REPUTATION.

 

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

 

AS MOST OF THE SUPPLIERS, WHICH PROVIDED INFORMATION, REPORTED PROMPT PAYMENTS AND THE SUBJECT HAS A GOOD TRADE REPUTATION.

 

THE LAWSUITS REPORTED ARE NOT RELATED WITH TRADE DEBTS. THEY ARE RELATED TO TAX DEBTS THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. USUALLY THIS KIND OF SUITS DO NOT AFFECT THE COMPANY REPUTATION BUT IN THE SUBJECT SPECIFIC CASE IT IS NOT POSSIBLE TO EVALUATE AS THERE ARE SEVERAL SUITS REGISTERED AND NO DETAILS REGARDING THE AMOUNTS INVOLVED ARE AVAILABLE FOR PUBLIC INSPECTION.

 

OUR INVESTIGATION THROUGH THE PUBLIC SHOWED SOME DETRIMENTAL FILES REGISTERED AGAINST THE SUBJECT BUT DUE TO THE SUBJECT'S HIGH FINANCIAL STRENGTH AND HIGH SCALE OF OPERATIONS THE DETRIMENTAL FILES DO NOT AFFECT ITS TRADE REPUTATION.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

 

 

BAHIAGAS

 

 

COELBA - COMPANHIA DE ELETRICIDADE DA BAHIA

 

 

COMGÁS

 

 

COMPANHIA HIDROELÉTRICA DO SÃO FRANCISCO - CHESF

 

 

EMBRASA

 

 

METANOL IMPORT

 

 

PETROBRÁS

 

 

PETROBRÁS DISTRIBUIDORA S/A

 

 

 

PAYMENT HISTORY:

 

32 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 41.472.010,00

 

AMOUNT OF INVOICES PAID: 1569

TOTAL OF PROMPT PAYMENTS: 98,6%

TOTAL OF DELAYED PAYMENTS: 1,4%

 

HIGHEST INVOICE: R$ 971.907,00

HIGHEST CREDIT: R$ 1.554.938,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 60 DAYS:

 

---------------------------

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

3

14

R$ 13.844,82

DUE WITHIN 60 DAYS

1

2

R$ 9.928,05

 

FINAL OPINION

 

THE SUBJECT IS AN OLD AND WELL-ESTABLISHED COMPANY. IT IS ONE OF THE MOST IMPORTANT COMPANIES IN THE WORLD IN ITS LINE OF BUSINESS. THE SUBJECT HAS A CLEAR TRADE HISTORY AND NORMAL PAYMENT BEHAVIOR.

 

BASED ON THE GENERAL INFORMATION AVAILABLE IT IS BELIEVED THAT GOOD TRADE RELATIONS MAY BE ESTABLISHED. CREDIT FACILITIES MAY BE EXTENDED WITHIN TERMS AND AMOUNTS ADEQUATE TO THE COMPANY'S FINANCIAL STRENGTH.

 

DESPITE SOME NEGATIVE RESULTS THE SUBJECT STILL HAS HIGH FINANCIAL POWER AND AN INITIAL CREDIT LIMIT OF US$ 10.000.000,00 MAY BE CONSIDERED. HIGHER AMOUNTS CAN BE GRANTED DEPENDING ON THE IMPORTANCE OF THE OPERATIONS TO BE ESTABLISHED WITH THE SUBJECT.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.76

UK Pound

1

Rs.94.02

Euro

1

Rs.72.63

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.