OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2013
(Commission File No. 1-14862 )
Camacari, Bahia - CEP 42810-000 Brazil
Form 20-F ___X___ Form 40-F ______
in paper as permitted by Regulation S-T Rule 101(b)(1). _____
in paper as permitted by Regulation S-T Rule 101(b)(7). _____
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ______ No ___X___
Report on Review of Quarterly Information
To the Board of Directors and Shareholders
Braskem S.A.
Introduction
We have reviewed the accompanying parent company and consolidated interim accounting information of Braskem S.A., included in the Quarterly Information Form (ITR) for the quarter ended June 30, 2013, comprising the balance sheet as at that date and the statements of operations and comprehensive income for the quarter and six-month periods then ended, and the statements of changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation of the parent company interim accounting information in accordance with the accounting standard CPC 21 - Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and of the consolidated interim accounting information in accordance with CPC 21 and International Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the parent
company interim information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM.
Braskem S.A.
Conclusion on the consolidatedinterim information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM.
Other matters
Statements of value added
We have also reviewed the parent company and consolidated statements of value added for the six-month period ended June 30, 2013. These statements are the responsibility of the Company’s management, and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the parent company and consolidated interim accounting information taken as a whole.
Salvador, August 8, 2013
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5 "F" BA
Fábio Cajazeira Mendes
Contador CRC 1SP196825/O-0 "S" BA
Braskem S.A.
Balance sheet
at June 30, 2013
All amounts in thousands of reais
Parent Company | Consolidated | |||||||||
Assets | Note | Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | |||||
2.2.1 | Revised | Revised | ||||||||
Current assets | ||||||||||
Cash and cash equivalents | 4 | 2,201,892 | 1,627,928 | 3,400,349 | 3,287,622 | |||||
Financial investments | 5 | 50,108 | 155,535 | 39,149 | 172,146 | |||||
Trade accounts receivable | 6 | 2,747,302 | 1,834,491 | 2,302,954 | 2,326,480 | |||||
Inventories | 7 | 2,552,279 | 2,478,550 | 4,374,023 | 4,102,055 | |||||
Taxes recoverable | 9 | 1,086,969 | 1,005,842 | 1,683,079 | 1,476,211 | |||||
Dividends and interest on capital | 135,851 | 130,145 | 439 | 2,645 | ||||||
Prepaid expenses | 47,686 | 14,153 | 133,815 | 54,013 | ||||||
Related parties | 8 | 18,817 | 13,906 | 20,330 | 13,912 | |||||
Insurance claims | 144,490 | 160,981 | 150,207 | 160,981 | ||||||
Other receivables | 10 | 626,003 | 761,450 | 752,611 | 818,434 | |||||
|
|
|
| |||||||
9,611,397 | 8,182,981 | 12,856,956 | 12,414,499 | |||||||
Non-current assets held for sale | 3(a) | 277,828 | 277,828 | |||||||
9,611,397 | 8,182,981 | 13,134,784 | 12,692,327 | |||||||
Non-current assets | ||||||||||
Financial investments | 5 |
| 32,731 | 34,088 | 55,104 | 34,489 | ||||
Trade accounts receivable | 6 | 140,338 | 35,710 | 143,108 | 37,742 | |||||
Taxes recoverable | 9 | 956,330 | 1,026,391 | 1,453,327 | 1,527,134 | |||||
Deferred income tax and social contribution | 17(b) | 1,580,280 | 1,100,611 | 2,636,091 | 2,062,009 | |||||
Judicial deposits | 11 | 168,519 | 164,443 | 179,809 | 179,618 | |||||
Related parties | 8 | 1,690,865 | 988,589 | 131,330 | 127,627 | |||||
Insurance claims | 59,888 | 45,649 | 61,494 | 47,255 | ||||||
Other receivables | 127,975 | 153,466 | 168,033 | 218,279 | ||||||
Investments in subsidiaries and jointly-controlled subsidiaries | 12 | 9,879,336 | 9,591,644 | 111,497 | 118,787 | |||||
Other investments | 6,575 | 6,575 | 6,949 | 6,948 | ||||||
Property, plant and equipment | 13 | 11,618,092 | 11,794,385 | 22,620,857 | 21,176,785 | |||||
Intangible assets | 14 | 2,229,908 | 2,241,565 | 2,928,559 | 2,940,966 | |||||
|
|
|
| |||||||
28,490,837 | 27,183,116 | 30,496,158 | 28,477,639 | |||||||
Total assets | 38,102,234 | 35,366,097 | 43,630,942 | 41,169,966 |
The Management notes are an integral part of the financial statements
1
Braskem S.A.
Balance sheet
at June 30, 2013
All amounts in thousands of reais Continued
Parent Company | Consolidated | |||||||||
Liabilities and equity | Note | Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | |||||
2.2.1 | Revised | Revised | ||||||||
Current liabilities | ||||||||||
Trade payables | 7,770,412 | 6,446,898 | 9,843,702 | 8,897,597 | ||||||
Borrowings | 15 | 3,045,917 | 1,887,811 | 2,796,159 | 1,836,028 | |||||
Derivatives operations | 23.2 | 16,061 | 293,378 | 97,221 | 293,378 | |||||
Payroll and related charges | 229,155 | 249,275 | 329,876 | 349,176 | ||||||
Taxes payable | 16 | 277,679 | 245,173 | 425,640 | 342,789 | |||||
Dividends and interest on capital | 1,326 | 2,160 | 4,102 | 5,369 | ||||||
Advances from customers | 19 | 41,008 | 257,079 | 464,263 | 237,504 | |||||
Sundry provisions | 18 | 17,519 | 11,930 | 48,634 | 52,264 | |||||
Post-employment benefits | 20 | 174,399 | 147,175 | 174,415 | 147,175 | |||||
Accounts payable to related parties | 8 | 282,879 | 206,991 |
|
| |||||
Other payables | 21 | 34,532 | 29,478 | 609,257 | 385,577 | |||||
|
|
|
| |||||||
11,890,887 | 9,777,348 | 14,793,269 | 12,546,857 | |||||||
Non-current liabilities held for sale | 3(a) | 109,770 | 109,770 | |||||||
11,890,887 | 9,777,348 | 14,903,039 | 12,656,627 | |||||||
Non-current liabilities | ||||||||||
Borrowings | 15 | 10,413,019 | 10,534,287 | 16,157,485 | 15,675,610 | |||||
Operações de derivativos | 23.2 | 340,790 |
| 340,790 |
| |||||
Taxes payable | 16 | 1,021,698 | 1,059,225 | 1,127,119 | 1,164,753 | |||||
Accounts payable to related parties | 8 | 4,904,076 | 3,667,754 |
|
| |||||
Long-term incentives | 9,843 | 10,405 | 9,843 | 10,405 | ||||||
Deferred income tax and social contribution | 17(b) | 1,051,795 | 1,015,743 | 2,248,056 | 2,138,622 | |||||
Post-employment benefits | 20 |
|
| 39,787 | 36,602 | |||||
Provision for losses on subsidiaries and jointly-controlled subsidiaries | 128,313 | 119,375 |
|
| ||||||
Advances from customers | 19 | 65,429 | 80,463 | 179,671 | 204,989 | |||||
Sundry provisions | 18 | 141,963 | 144,782 | 324,825 | 363,411 | |||||
Other payables | 332,553 | 343,652 | 409,718 | 266,963 | ||||||
|
|
|
| |||||||
18,409,479 | 16,975,686 | 20,837,294 | 19,861,355 | |||||||
Equity | 24 | |||||||||
Capital | 8,043,222 | 8,043,222 | 8,043,222 | 8,043,222 | ||||||
Capital reserve | 232,430 | 797,979 | 232,430 | 797,979 | ||||||
Other comprehensive income | (580,572) | 337,411 | (580,572) | 337,411 | ||||||
Treasury shares |
|
| (48,892) | (48,892) | ||||||
Losses accumulated | 106,788 | (565,549) | 106,788 | (565,549) | ||||||
|
|
|
| |||||||
Total attributable to the Company's shareholders | 7,801,868 | 8,613,063 | 7,752,976 | 8,564,171 | ||||||
Non-controlling interest | 2.4 |
| 137,633 | 87,813 | ||||||
|
| |||||||||
7,801,868 | 8,613,063 | 7,890,609 | 8,651,984 | |||||||
Total liabilities and equity | 38,102,234 | 35,366,097 | 43,630,942 | 41,169,966 |
The Management notes are an integral part of the financial statements
2
Braskem S.A.
Statement of operations for the period
at June 30, 2013
All amounts in thousands of reais, except earnings (loss) per share
Parent Company | Consolidated | |||||||||||||||||
Note | 2Q13 | YTD13 | 2Q12 | YTD12 | 2Q13 | YTD13 | 2Q12 | YTD12 | ||||||||||
3(b) | Revised | Revised | ||||||||||||||||
Continued operations | ||||||||||||||||||
Net sales revenue | 26 | 5,799,541 | 11,308,324 | 5,121,830 | 9,696,524 | 9,527,624 | 18,823,375 | 8,955,986 | 17,027,659 | |||||||||
Cost of products sold | (5,018,467) | (9,988,118) | (4,599,513) | (8,746,223) | (8,470,621) | (16,786,296) | (8,146,086) | (15,628,111) | ||||||||||
Gross profit | 781,074 | 1,320,206 | 522,317 | 950,301 | 1,057,003 | 2,037,079 | 809,900 | 1,399,548 | ||||||||||
Income (expenses) | ||||||||||||||||||
Selling | (51,345) | (99,842) | (41,830) | (91,214) | (96,016) | (195,571) | (89,265) | (180,216) | ||||||||||
Distribution | (94,596) | (194,673) | (93,204) | (183,526) | (144,180) | (290,997) | (136,640) | (266,638) | ||||||||||
General and administrative | (155,995) | (310,183) | (187,817) | (341,274) | (228,153) | (465,159) | (269,035) | (500,784) | ||||||||||
Research and development | (20,426) | (38,941) | (21,457) | (39,617) | (26,677) | (51,241) | (26,911) | (51,357) | ||||||||||
Results from equity investments | 12(c) | (121,153) | 34,935 | 114,860 | 252,090 | 1,528 | (3,194) | 4,179 | 2,080 | |||||||||
Other operating income (expenses), net | 31 | 11,907 | (8,324) | 73,896 | 41,498 | (25,103) | (54,158) | 90,529 | 282,469 | |||||||||
Operating profit | 349,466 | 703,178 | 366,765 | 588,258 | 538,402 | 976,759 | 382,757 | 685,102 | ||||||||||
Financial results | 28 | |||||||||||||||||
Financial expenses | (739,901) | (891,410) | (2,167,137) | (2,236,714) | (995,764) | (1,225,814) | (2,383,008) | (2,575,759) | ||||||||||
Financial income | 307,972 | 353,286 | 188,052 | 200,982 | 329,967 | 452,831 | 280,681 | 366,322 | ||||||||||
(431,929) | (538,124) | (1,979,085) | (2,035,732) | (665,797) | (772,983) | (2,102,327) | (2,209,437) | |||||||||||
Profit (loss) before income tax and | ||||||||||||||||||
social contribution | (82,463) | 165,054 | (1,612,320) | (1,447,474) | (127,395) | 203,776 | (1,719,570) | (1,524,335) | ||||||||||
Current and deferred income tax and social contribution | 17(a) | (34,763) | (72,368) | 581,903 | 570,615 | (829) | (105,197) | 676,547 | 623,409 | |||||||||
(34,763) | (72,368) | 581,903 | 570,615 | (829) | (105,197) | 676,547 | 623,409 | |||||||||||
Profit (loss) for the period of continued operations | (117,226) | 92,686 | (1,030,417) | (876,859) | (128,224) | 98,579 | (1,043,023) | (900,926) | ||||||||||
Discontinued operations results | 3(b) | |||||||||||||||||
Profit from discontinued operations | 14,507 | 29,940 | ||||||||||||||||
Current and deferred income tax and social contribution | (4,661) | (9,994) | ||||||||||||||||
9,846 | 19,946 | |||||||||||||||||
Profit (loss) for the period | (128,224) | 98,579 | (1,033,177) | (880,980) | ||||||||||||||
Attributable to: | ||||||||||||||||||
| Company's shareholders |
|
|
|
| (117,226) |
| 92,686 |
| (1,030,417) |
| (876,859) | ||||||
| Non-controlling interest | 2.4 |
|
|
| (10,998) |
| 5,893 |
| (2,760) |
| (4,121) | ||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
| (128,224) |
| 98,579 |
| (1,033,177) |
| (880,980) | ||
|
|
|
|
|
|
|
|
|
| |||||||||
Earnings per share attributable to the shareholders of the Company | ||||||||||||||||||
of continued operations at the end of the period (R$) | 25 | |||||||||||||||||
Basic earnings per share - common | (1.0756) | |||||||||||||||||
Basic earnings per share - preferred | 0.2691 | (1.0756) | ||||||||||||||||
Diluted earnings per share - common | (1.0752) | |||||||||||||||||
Diluted earnings per share - preferred | 0.2693 | (1.0752) |
The Management notes are an integral part of the financial statements
3
Braskem S.A.
Statement of comprehensive income for the period
at June 30, 2013
All amounts in thousands of reais, except earnings (loss) per share
Parent Company | Consolidated | |||||||||||||||||
Note | 2Q13 | YTD13 | 2Q12 | YTD12 | 2Q13 | YTD13 | 2Q12 | YTD12 | ||||||||||
3(b) | Revised | Revised | ||||||||||||||||
Profit (loss) for the period | (117,226) |
| 92,686 | (1,030,417) | (876,859) | (128,224) | 98,579 | (1,033,177) | (880,980) | |||||||||
|
|
|
|
|
|
|
|
| ||||||||||
Other comprehensive income or loss: |
|
|
|
|
|
|
|
|
| |||||||||
Fair value of cash flow hedge | (1,517,598) |
| (1,517,598) |
| 15,613 | (1,517,598) | (1,517,598) |
| 15,613 | |||||||||
Foreign currency translation adjustment | 106,549 |
| 99,728 | 92,254 | 36,623 | 111,427 | 108,250 | 98,713 | 49,269 | |||||||||
Income tax and social contribution related to |
|
|
|
|
|
|
|
|
| |||||||||
components of comprehensive income | 515,983 |
| 515,983 |
| (5,309) | 515,983 | 515,983 |
| (5,309) | |||||||||
|
|
|
|
|
|
|
|
| ||||||||||
Total other comprehensive income or loss | (895,066) |
| (901,887) | 92,254 | 46,927 | (890,188) | (893,365) | 98,713 | 59,573 | |||||||||
|
|
|
|
|
|
|
|
| ||||||||||
Total comprehensive income for the period | (1,012,292) |
| (809,201) | (938,163) | (829,932) | (1,018,412) | (794,786) | (934,464) | (821,407) | |||||||||
|
|
|
|
|
|
|
|
| ||||||||||
Attributable to: |
|
|
|
|
|
|
|
|
| |||||||||
Company's shareholders - continued operations |
|
|
|
|
| (1,012,292) | (809,201) | (948,009) | (849,878) | |||||||||
Company's shareholders - discontinued operations |
|
|
|
|
|
|
| 9,846 | 19,946 | |||||||||
Non-controlling interest |
|
|
|
|
| (6,120) | 14,415 | 3,699 | 8,525 | |||||||||
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
| (1,018,412) | (794,786) | (934,464) | (821,407) |
The Management notes are an integral part of the financial statements
4
Braskem S.A.
Statement of changes in equity
All amounts in thousands of reais
Parent Company | |||||||||||||||||||||
Revenue reserves |
| Retained | |||||||||||||||||||
Unrealized | Additional | Other | earnings | Total | |||||||||||||||||
Capital | Legal | Tax | profit | dividends | comprehensive | Treasury | (accumulated | shareholders' | |||||||||||||
Note | Capital | reserve | reserve | incentives | reserve | proposed | income | shares | deficit) | equity | |||||||||||
At December 31, 2011 | 8,043,222 | 845,998 | 87,710 |
| 4,547 |
| 16,457 |
| 482,593 |
| 315,586 |
| (11,325) |
| 28,692 |
| 9,813,480 | ||||
|
|
|
|
|
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|
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|
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|
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|
| |||||
Comprehensive income for the period: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loss for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (876,859) |
| (876,859) | ||||
Fair value of cash flow hedge, net of taxes |
|
|
|
|
|
|
|
|
|
| 10,304 |
|
|
|
|
| 10,304 | ||||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
| 36,623 |
|
|
|
|
| 36,623 | ||||
|
|
|
|
|
|
|
|
|
| 46,927 |
|
|
| (876,859) |
| (829,932) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Equity valuation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Realization of deemed cost of jointly-controlled subsidiary, net of taxes |
|
|
|
|
|
|
|
|
|
| (230) |
|
|
| 230 |
|
| ||||
Realization of additional property, plant and equipment price-level | |||||||||||||||||||||
restatement, net of taxes |
|
|
|
|
|
|
|
|
|
| (13,618) |
|
|
| 13,618 |
|
| ||||
|
|
|
|
|
|
|
|
|
| (13,848) |
|
|
| 13,848 |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Contributions and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Additional dividends approved at Shareholders’ Meeting |
|
|
|
|
|
|
|
| (482,593) |
|
|
|
|
|
|
| (482,593) | ||||
Gain on interest in subsidiary |
|
|
|
|
|
|
|
|
|
| 1,511 |
|
|
|
|
| 1,511 | ||||
|
|
|
|
|
|
|
| (482,593) |
| 1,511 |
|
|
|
|
| (481,082) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
At June 30, 2012 | 8,043,222 | 845,998 | 87,710 |
| 4,547 |
| 16,457 |
|
|
| 350,176 |
| (11,325) |
| (834,319) |
| 8,502,466 | ||||
At December 31, 2012 (revised) | 8,043,222 | 797,979 |
|
|
|
| 337,411 |
| (565,549) | 8,613,063 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Profit for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 92,686 |
| 92,686 | ||||
Fair value of cash flow hedge, net of taxes |
|
|
|
|
|
|
|
|
|
| (1,001,615) |
|
|
|
|
| (1,001,615) | ||||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
| 99,728 |
|
|
|
|
| 99,728 | ||||
|
|
|
|
|
|
|
|
|
| (901,887) |
|
|
| 92,686 |
| (809,201) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Equity valuation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Realization of deemed cost of jointly-controlled subsidiary, net of taxes |
|
|
|
|
|
|
|
|
|
| (484) |
|
|
| 484 |
|
| ||||
Realization of additional property, plant and equipment price-level |
| ||||||||||||||||||||
restatement, net of taxes |
|
|
|
|
|
|
|
|
|
| (13,618) |
|
|
| 13,618 |
|
| ||||
|
|
|
|
|
|
|
|
|
| (14,102) |
|
|
| 14,102 |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Contributions and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Absorption of losses | 24(d) |
| (565,549) |
|
|
|
|
|
| 565,549 |
| ||||||||||
Loss on interest in subsidiary |
|
|
|
|
|
|
|
|
|
| (1,994) |
|
|
|
|
| (1,994) | ||||
| (565,549) |
|
|
|
|
|
|
|
| (1,994) |
|
|
| 565,549 |
| (1,994) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
At June 30, 2013 | 8,043,222 | 232,430 |
|
|
|
|
|
|
|
| (580,572) |
|
|
| 106,788 |
| 7,801,868 |
The Management notes are an integral part of the financial statements
5
Braskem S.A.
Statement of changes in equity
All amounts in thousands of reais
Consolidated | |||||||||||||||||||||||||
Attributed to shareholders' interest | |||||||||||||||||||||||||
Revenue reserves | Retained | Total | |||||||||||||||||||||||
Unrealized | Additional | Other | earnings | Braskem | Total | ||||||||||||||||||||
Capital | Legal | Tax | profit | dividends | comprehensive | Treasury | (accumulated | shareholders' | Non-controlling | shareholders' | |||||||||||||||
Capital | reserve | reserve | incentives | reserve | proposed | income | shares | deficit) | interest | interest | equity | ||||||||||||||
At December 31, 2011 | 8,043,222 |
| 845,998 |
| 87,710 |
| 4,547 |
| 16,457 |
| 482,593 |
| 315,586 |
| (60,217) |
| 28,692 |
| 9,764,588 |
| 215,322 |
| 9,979,910 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Loss for the period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (876,859) |
| (876,859) |
| (4,121) |
| (880,980) | ||
Fair value of cash flow hedge, net of taxes |
|
|
|
|
|
|
|
|
|
|
|
| 10,304 |
|
|
|
|
| 10,304 |
|
|
| 10,304 | ||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
|
| 36,623 |
|
|
|
|
| 36,623 |
| 12,646 |
| 49,269 | ||
|
|
|
|
|
|
|
|
|
|
|
| 46,927 |
|
|
| (876,859) |
| (829,932) |
| 8,525 |
| (821,407) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Equity valuation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Realization of deemed cost of jointly-controlled subsidiary, net of taxes |
|
|
|
|
|
|
|
|
|
|
|
| (230) |
|
|
| 230 |
|
|
|
|
|
| ||
Realization of additional property, plant and equipment price-level | |||||||||||||||||||||||||
restatement, net of taxes |
|
|
|
|
|
|
|
|
|
|
|
| (13,618) |
|
|
| 13,618 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| (13,848) |
|
|
| 13,848 |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Contributions and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Additional dividends approved at Shareholders’ Meeting |
|
|
|
|
|
|
|
|
|
| (482,593) |
|
|
|
|
|
|
| (482,593) |
|
|
| (482,593) | ||
Capital increase of non-controlling shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 22,534 |
| 22,534 | ||
Gain on interest in subsidiary |
|
|
|
|
|
|
|
|
|
|
|
| 1,511 |
|
|
|
|
| 1,511 |
| (1,511) |
|
| ||
|
|
|
|
|
|
|
|
|
| (482,593) |
| 1,511 |
|
|
|
|
| (481,082) |
| 21,023 |
| (460,059) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
At June 30, 2012 | 8,043,222 |
| 845,998 |
| 87,710 |
| 4,547 |
| 16,457 |
|
|
| 350,176 |
| (60,217) |
| (834,319) |
| 8,453,574 |
| 244,870 |
| 8,698,444 | ||
At December 31, 2012 (revised) | 8,043,222 |
| 797,979 |
|
|
|
|
|
|
|
|
| 337,411 |
| (48,892) |
| (565,549) |
| 8,564,171 |
| 87,813 |
| 8,651,984 | ||
Comprehensive income for the period: | |||||||||||||||||||||||||
Profit for the period |
|
|
|
| 92,686 |
| 92,686 |
| 5,893 |
| 98,579 | ||||||||||||||
Fair value of cash flow hedge, net of taxes | (1,001,615) |
|
|
|
|
| (1,001,615) |
|
|
| (1,001,615) | ||||||||||||||
Foreign currency translation adjustment | 99,728 |
|
|
|
|
| 99,728 |
| 8,522 |
| 108,250 | ||||||||||||||
|
|
|
|
|
| (901,887) |
| 92,686 | (809,201) | 14,415 | (794,786) | ||||||||||||||
Equity valuation adjustments | |||||||||||||||||||||||||
Realization of deemed cost of jointly-controlled subsidiary, net of taxes | (484) | 484 |
|
| |||||||||||||||||||||
Realization of additional property, plant and equipment price-level | |||||||||||||||||||||||||
restatement, net of taxes | (13,618) |
|
|
| 13,618 |
| |||||||||||||||||||
|
|
|
|
|
| (14,102) |
| 14,102 |
|
|
| ||||||||||||||
Contributions and distributions to shareholders: | |||||||||||||||||||||||||
Absorption of losses | 24(d) |
| (565,549) |
|
|
|
|
|
| 565,549 |
|
|
| ||||||||||||
Capital increase of non-controlling shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 35,405 |
| 35,405 | ||||||||
Loss on interest in subsidiary |
|
|
|
|
|
| (1,994) |
|
|
|
|
| (1,994) |
|
|
| (1,994) | ||||||||
| (565,549) |
|
|
|
| (1,994) |
| 565,549 | (1,994) | 35,405 | 33,411 | ||||||||||||||
At June 30, 2013 | 8,043,222 | 232,430 |
|
|
|
| (580,572) | (48,892) | 106,788 | 7,752,976 | 137,633 | 7,890,609 |
The Management notes are an integral part of the financial statements
6
Braskem S.A.
Statement of cash flows
at June 30, 2013
All amounts in thousands of reais
Parent Company | Consolidated | |||||||
YTD13 | YTD12 | YTD13 | YTD12 | |||||
Profit (loss) before income tax and social contribution | ||||||||
and after of discontinued operations results | 165,054 |
| (1,447,474) |
| 203,776 |
| (1,494,395) | |
|
|
|
|
|
|
| ||
Adjustments for reconciliation of loss |
|
|
|
|
|
|
| |
Depreciation, amortization and depletion | 603,005 |
| 568,976 |
| 967,935 |
| 927,750 | |
Results from equity investments | (34,935) |
| (252,090) |
| 3,194 |
| (2,080) | |
Interest and monetary and exchange variations, net | 494,918 |
| 1,326,788 |
| 511,995 |
| 1,611,653 | |
Other | 2,161 |
| 212 |
| 43,919 |
| 3,584 | |
|
|
|
|
|
|
| ||
1,230,203 |
| 196,412 |
| 1,730,819 |
| 1,046,512 | ||
|
|
|
|
|
|
| ||
Changes in operating working capital |
|
|
|
|
|
|
| |
Held-for-trading financial investments | 105,343 |
| 30,079 |
| 101,391 |
| (21,773) | |
Trade accounts receivable | (1,023,648) |
| (110,040) |
| (82,981) |
| (251,271) | |
Inventories | (35,376) |
| (617,804) |
| (269,298) |
| (897,422) | |
Taxes recoverable | 982 |
| (231,804) |
| (98,296) |
| (358,927) | |
Prepaid expenses | (33,534) |
| 19,908 |
| (79,802) |
| 29,880 | |
Other receivables | (115,762) |
| (133,439) |
| (13,013) |
| 27,956 | |
Trade payables | 915,174 |
| 1,955,690 |
| 537,764 |
| 1,999,107 | |
Taxes payable | 2,397 |
| (25,317) |
| (8,645) |
| (57,728) | |
Long-term incentives | (563) |
| (4,973) |
| (562) |
| (4,973) | |
Advances from customers | (231,105) |
| 481,240 |
| 201,441 |
| 93,364 | |
Sundry provisions | (24,037) |
| 17,094 |
| (42,216) |
| 9,243 | |
Other payables | 20,458 |
| 143,814 |
| 365,045 |
| 149,949 | |
|
|
|
|
|
|
| ||
Cash from operations | 810,532 |
| 1,720,860 |
| 2,341,647 |
| 1,763,917 | |
|
|
|
|
|
|
| ||
Interest paid | (233,154) |
| (354,000) |
| (512,935) |
| (392,491) | |
Income tax and social contribution paid | (12,049) |
| (21,874) |
| (34,765) |
| (21,487) | |
|
|
|
|
|
|
| ||
Net cash generated by (used in) operating activities | 565,329 |
| 1,344,986 |
| 1,793,947 |
| 1,349,939 | |
|
|
|
|
|
|
| ||
Proceeds from the sale of fixed assets |
|
|
|
| 1,141 |
| 747 | |
Proceeds from the sale of investments | 233,000 |
|
|
| 233,000 |
|
| |
Cash effect from incorporated subsidiary |
|
| 394 |
|
|
|
| |
Acquisitions of investments in subsidiaries and associates | (106,245) |
| (35,204) |
| (31) |
|
| |
Acquisitions to property, plant and equipment | (419,171) |
| (911,651) |
| (2,150,117) |
| (1,400,457) | |
Acquisitions of intangible assets | (7,767) |
| (4,595) |
| (8,264) |
| (4,695) | |
Held-for-trading and available for sale financial investments | 10,329 |
| (1,660) |
| 19,584 |
| (4,598) | |
|
|
|
|
|
|
| ||
Net cash used in investing activities | (289,854) |
| (952,716) |
| (1,904,687) |
| (1,409,003) | |
|
|
|
|
|
|
| ||
Short-term and long-term debt |
|
|
|
|
|
|
| |
Obtained borrowings | 3,629,200 |
| 1,698,231 |
| 4,584,995 |
| 3,595,351 | |
Payment of borrowings | (3,532,445) |
| (2,536,219) |
| (4,381,882) |
| (3,182,616) | |
Related parties |
|
|
|
|
|
|
| |
Obtained loans | 130,801 |
| 1,081,259 |
|
|
|
| |
Payment of loans | (114,621) |
| (135,835) |
|
|
|
| |
Net current transactions | 185,584 |
| (41,696) |
|
|
|
| |
Dividends paid | (30) |
| (17) |
| (30) |
| (18) | |
Non-controlling interests in subsidiaries |
|
|
|
| 32,712 |
| 16,347 | |
|
|
|
|
|
|
| ||
Net cash provided by (used in) financing activities | 298,489 |
| 65,723 |
| 235,795 |
| 429,064 | |
|
|
|
|
|
|
| ||
Exchange variation on cash of foreign subsidiaries |
|
|
|
| (12,328) |
| (24,816) | |
|
|
|
|
|
|
| ||
Increase (decrease) in cash and cash equivalents | 573,964 |
| 457,993 |
| 112,727 |
| 345,184 | |
|
|
|
|
|
|
| ||
Represented by |
|
|
|
|
|
|
| |
Cash and cash equivalents at the beginning for the period | 1,627,928 |
| 2,224,335 |
| 3,287,622 |
| 2,952,272 | |
Cash and cash equivalents at the end for the period | 2,201,892 |
| 2,682,328 |
| 3,400,349 |
| 3,297,456 | |
|
|
|
|
|
|
| ||
Increase (decrease) in cash and cash equivalents | 573,964 |
| 457,993 |
| 112,727 |
| 345,184 |
The Management notes are an integral part of the financial statements
7
Braskem S.A.
Statement of value added
At June 30, 2013
All amounts in thousands of reais
Parent Company | Consolidated | |||||||||
Continued and discontinued operations | Nota | YTD13 | YTD12 | YTD13 | YTD12 | |||||
Revenue |
|
| 13,403,305 |
| 11,790,829 |
| 21,893,699 |
| 20,777,664 | |
Sale of goods, products and services, including discontinued operations | 3(b) |
| 13,420,007 |
| 11,747,235 |
| 21,958,474 |
| 20,489,394 | |
Other income (expenses), net |
|
| (4,749) |
| 58,777 |
| (47,006) |
| 313,072 | |
Allowance for doubtful accounts |
|
| (11,953) |
| (15,183) |
| (17,769) |
| (24,802) | |
Inputs acquired from third parties |
|
| (11,462,171) |
| (9,346,801) |
| (18,860,729) |
| (16,861,621) | |
Cost of products, goods and services sold |
|
| (11,055,739) |
| (8,965,192) |
| (18,218,852) |
| (16,229,208) | |
Material, energy, outsourced services and others |
|
| (406,244) |
| (381,159) |
| (641,618) |
| (626,757) | |
Impairment of assets |
|
| (188) |
| (450) |
| (259) |
| (5,656) | |
Gross value added |
|
| 1,941,134 |
| 2,444,028 |
| 3,032,970 |
| 3,916,043 | |
|
|
|
|
|
|
|
|
| ||
Depreciation, amortization and depletion | 3(b) |
| (603,005) |
| (568,976) |
| (967,935) |
| (927,750) | |
|
|
|
|
|
|
|
|
| ||
Net value added produced by the entity |
|
| 1,338,129 |
| 1,875,052 |
| 2,065,035 |
| 2,988,293 | |
|
|
|
|
|
|
|
|
| ||
Value added received in transfer |
|
| 388,397 |
| 453,169 |
| 449,809 |
| 376,211 | |
Results from equity investments | 3(b) |
| 34,935 |
| 252,090 |
| (3,194) |
| 2,080 | |
Financial income | 3(b) |
| 353,286 |
| 200,982 |
| 452,831 |
| 373,998 | |
Other |
|
| 176 |
| 97 |
| 172 |
| 133 | |
|
|
|
|
|
|
|
|
| ||
Total value added to distribute |
|
| 1,726,526 |
| 2,328,221 |
| 2,514,844 |
| 3,364,504 | |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
Personnel |
|
| 245,928 |
| 254,125 |
| 392,965 |
| 426,926 | |
Direct compensation |
|
| 192,719 |
| 182,785 |
| 306,272 |
| 319,222 | |
Benefits |
|
| 34,376 |
| 53,543 |
| 62,999 |
| 82,927 | |
FGTS (Government Severance Pay Fund) |
|
| 18,833 |
| 17,797 |
| 23,694 |
| 24,777 | |
|
|
|
|
|
|
|
|
| ||
Taxes, fees and contributions |
|
| 440,322 |
| 652,301 |
| 729,286 |
| 1,152,504 | |
Federal |
|
| 131,940 |
| (218,068) |
| 355,742 |
| (77,051) | |
State |
|
| 304,660 |
| 865,891 |
| 364,139 |
| 1,213,323 | |
Municipal |
|
| 3,722 |
| 4,478 |
| 9,405 |
| 16,232 | |
|
|
|
|
|
|
|
|
| ||
Remuneration on third parties' capital |
|
| 947,590 |
| 2,298,654 |
| 1,294,014 |
| 2,666,054 | |
Financial expenses (including exchange variation) |
|
| 881,868 |
| 2,227,844 |
| 1,211,513 |
| 2,572,826 | |
Rentals |
|
| 65,722 |
| 70,810 |
| 82,501 |
| 93,228 | |
|
|
|
|
|
|
|
|
| ||
Remuneration on own capital |
|
| 92,686 |
| (876,859) |
| 98,579 |
| (880,980) | |
Profit for the period | 3(b) |
| 92,686 |
| (876,859) |
| 92,686 |
| (896,805) | |
Non-controlling interests in profit (loss) for the period |
|
|
|
|
|
| 5,893 |
| (4,121) | |
Profit from discontinued operations |
|
|
|
|
|
|
|
| 19,946 | |
|
|
|
|
|
|
|
|
| ||
Value added distributed |
|
| 1,726,526 |
| 2,328,221 |
| 2,514,844 |
| 3,364,504 |
The Management notes are an integral part of the financial statements
8
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
1. Operations
Braskem S.A. (hereinafter “Parent Company”) is a public corporation headquartered in Camaçari, Bahia, which jointly with its subsidiaries (hereinafter “Braskem” or “Company”), operates 36 industrial units, 29 in Brazil, 5 in the United States and 2 in Germany.
Braskem S.A. is controlled by Odebrecht S.A. (“Odebrecht”), which indirectly holds interests of 50.11% and 38.32% in its voting and total capital, respectively.
(a) Material corporate and operating events
(a.1) On August 17, 2012, the Company inaugurated, in Marechal Deodoro, Alagoas, a new plant with annual production capacity of 200 kton of polyvinyl chloride (“PVC”). With the plant’s opening, Braskem’s annual PVC production capacity increased to 710 kton (unaudited).
(a.2) On September 13, 2012, the Company inaugurated, in the Triunfo Petrochemical Complex in the state of Rio Grande do Sul, a new plant with annual production capacity of 103 kton (unaudited) of butadiene. The new plant is already operating at full production capacity.
(a.3) In the last quarter of 2012, the ownership interests held in Cetrel and Braskem Distribuidora were divested, for R$208,100 and R$444,000, respectively. The Parent Company held 54.2% of the total and voting capital of Cetrel and 100% of the capital of Braskem Distribuidora.
(a.4) The Extraordinary Shareholders Meeting held on May 15, 2013 approved the increase in the capital stock of the subsidiary Braskem Idesa S.A.P.I. (“Braskem Idesa”), without the issue of new shares, in the amount of R$141,620 (Mex$850,061), through capital injection of R$ 106,214 (Mex$ 637,546) by the parent company and R$ 35,406 (Mex$ 212,515) by the non-controlling shareholder.
(b) Net working capital
On June 30, 2013, net working capital at the Parent Company and Consolidated were negative R$2,279,490 and R$1,768,255, respectively. The consolidated figures are used in the management of working capital, since the Company uses mechanisms to transfer funds between the companies efficiently without jeopardizing the fulfillment of the commitments of each of the entities forming the consolidated statements. For this reasons, any analysis of the Parent Company’s working capital will not reflect the actual liquidity position of the consolidated group. Although the consolidated net working capital is negative, the Company does not have any issue regarding liquidity, since this condition is only temporary, for the following reason. Braskem S.A. and the Idesa Group temporarily financed the installation of the Ethylene XXI Project in Mexico of the subsidiary Braskem Idesa. The funds required are loaned by the shareholders proportionally to their interest in the capital of Braskem Idesa. As of June 30, 2013, a total of R$1,964 million had been loaned, of which R$1,472 million by Braskem and R$492 million by the Idesa Group. These funds will be repaid upon the release of funds under the long-term loan Project Finance structure. The contracts were executed in December 2012 and the first tranche was made in July 2013 (Note 32). The amount owed to the Idesa Group is recorded in “other accounts payable” under current liabilities in the consolidated financial statements (Note 21).
Additionally, Braskem has three revolving credit lines in the amounts of: (i) US$350 million that may be used without restrictions for a period of four years as from November 2012; and (ii) US$250 million that may be used without restrictions for a period of five years as from August 2011; and (iii) R$450 million for a period of
9
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
three years as from December 2012. These credit facilities enable Braskem to reduce the amount of cash it holds. Up to June 30, 2013, Braskem had not drawn credit from these lines.
(c) Effect of foreign exchange variation
The Company has balances and transactions in other currencies, mainly in U.S. dollar, as well as financial investments, trade accounts receivable, trade payables, borrowings and sales. The balances of assets and liabilities are translated based on the exchange rate at the end of each period, while transactions are based on the effective exchange rate on the date each operation occurs. These rates are informed by the Central Bank of Brazil.
The following table shows the U.S. dollar average and end-of-period exchange rates for the periods in this report:
U.S. dollar, end of period |
|
June 2013 | R$ 2.2156 |
December 2012 | R$ 2.0435 |
Appreciation of the U.S. dollar in relation to the Brazilian real | 8.42% |
|
|
Average U.S. dollar rate |
|
Six-month period ended June 30, 2013 | R$ 2.0333 |
Six-month period ended June 30, 2012 | R$ 1.8663 |
Appreciation of the U.S. dollar in relation to the Brazilian real | 8.95% |
2. Summary of significant accounting policies
2.1. Basis of preparation
This Quarterly Information should be read together with the financial statements of Braskem S.A. as of December 31, 2012, which were prepared and presented in accordance with accounting practices adopted in Brazil, including the pronouncements issued by the Brazilian Accounting Pronouncements Committee (CPC), and in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
The preparation of the quarterly information requires the use of certain critical accounting estimates. It also requires the Management of the Company to exercise its judgment in the process of applying its accounting policies. There were no changes in the assumptions and judgments made by the Company’s management in the use of estimates for the preparation of the Quarterly Information in relation to those used in the December 31, 2012 financial statements.
The statement of operations and statement of comprehensive income for the second quarter of 2012 and for the period ended June 30, 2012, as well as their respective Notes for the period ended June 30, 2012 were restated to reflect the divestments of Cetrel S.A. (“Cetrel”) and of Distribuidora de Água Camaçari S.A. (“Braskem Distribuidora”), as well as the decision to divest IQ Soluções & Química S.A. (“Quantiq”) and IQAG Armazéns Gerais Ltda. (“IQAG”) (Note 3). The balance sheet and statement of changes in shareholders' equity as on December 31, 2012, were resubmitted to reflect the effects of the retroactive application of CPC 33 (R1) and IAS 19, as explained in Note 20.
10
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a) Consolidated quarterly information
The consolidated Quarterly Information was prepared and is being presented in accordance with the pronouncements CPC 21 (R1) and IAS 34 - Interim Financial Reporting, which establish the minimum content for interim financial statements.
(b) Parent company quarterly information
The parent company Quarterly Information was prepared and is being presented in accordance with pronouncement CPC 21.
2.2. Accounting policies
There were no changes in the accounting practices used in the preparation of the Quarterly Information in relation to those presented in the December 31, 2012 financial statements, except as presented in Notes 2.2.1 and 2.2.2.
2.2.1 Defined benefit plans
The defined benefit plans are financed by contributions to pension funds and the use of actuarial assumptions is necessary to measure the liability and the expenses of the plans, as well as the existence of actuarial gains and losses.
The liability recognized in respect of these plans is the present value of the defined benefit obligation at the balance sheet date, less the fair value of plan assets, adjusted by actuarial gains or losses and past-service costs.
The cost components of defined-benefit plans are recognized as follows:
(i) actuarial gains and losses from the actuarial remeasurement are recognized under “other comprehensive income”.
(ii) immediate recognition of the costs of past services in the profit or loss as they are incurred; and
(iii) the net amount of interest on the assets and liabilities of the plan are recorded in the financial results of the period.
Until 2012, item (i) above was not recognized if the amount was lower than 10% (a) of the amount of the current defined benefit obligation; and (b) of the fair value of any plan assets. As of 2013, the amount must be recognized at the moment it is determined. The effects of this change in accounting standard are described in Note 20.
2.2.2 Derivative instruments and hedge operations
(a) Derivative instruments
Derivatives are permanently recognized at fair value. The recognition of gain or loss in the result depends on the designation of the derivative as a hedge instrument.
11
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Hedge operations
The fair value of a hedge derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is greater than 12 months.
The Management may designate the derivatives contracted as hedges for a specific risk associated to a recognized asset or liability, or a highly probable expected operation (cash flow hedge) and non-derivative financial instruments as hedges for the flow of highly probable future exports.
At the beginning of the operation, the Company documents the relationship between the hedge instruments and the respective hedged items, as well as the risk management objectives and strategy for undertaking the hedge. It also constantly documents its assessment as to whether the derivatives and non-derivatives used in the hedge operations are highly effective in offsetting the changes in fair values or cash flows of the hedged items.
The effective portion of changes in fair value of the hedge derivatives and the foreign exchange variation on financial liabilities designated and qualified as hedges for the flow of exports are recognized in "other comprehensive income".These amounts are transferred to the “financial result” in the periods when the item covered by hedge affects the result.The not effective portion is immediately booked at the statement of operations as “financial result”.
When a hedge instrument expires, is sold, or no longer meets the criteria for hedge accounting, it is discontinued prospectively and all the accumulated gain or loss in shareholders' equity remains there and is recognized in the profit or loss of the year when the hedged item or transaction impacts the result.If the hedged item or transaction is settled in advance or discontinued or if any foreseen transaction is not expected to occur, the accumulated gain or loss in shareholders' equity is immediately transferred to "financial results".
Cash flow hedge operations held by the Company are described in Note 23.
(c) Derivatives measured at fair value through profit and loss
Derivatives not designated as hedge instruments are classified as current assets or liabilities.
Changes in the fair value of these derivative instruments are recognized immediately in the statement of operations under “financial results”, regardless of the instrument contracted.
2.3. Consolidated quarterly information
The consolidated quarterly information includes the quarterly information of the Parent Company and companies in which it, directly or indirectly, maintains a controlling equity interest or controls the activities, as presented below:
12
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Total interest - % | |||||||||||
Headquarters | |||||||||||
(Country) | Jun/2013 | Dec/2012 | Jun/2012 | ||||||||
Direct and Indirect subsidiaries | |||||||||||
Braskem America, Inc. (“Braskem America”) |
| USA | 100.00 | 100.00 | 100.00 | ||||||
Braskem America Finance Company ("Braskem America Finance") |
| USA | 100.00 | 100.00 | 100.00 | ||||||
Braskem Argentina S.A. (“Braskem Argentina”) |
| Argentina | 100.00 | 100.00 | 100.00 | ||||||
Braskem Austria Finance GmbH ("Braskem Austria Finance") | (i) | Austria | 100.00 | 100.00 |
| ||||||
Braskem Chile Ltda. (“Braskem Chile”) |
| Chile | 100.00 | 100.00 | 100.00 | ||||||
Braskem Europe GmbH ("Braskem Alemanha") |
| Germany | 100.00 | 100.00 | 100.00 | ||||||
Braskem Finance Limited (“Braskem Finance”) |
| Cayman Islands | 100.00 | 100.00 | 100.00 | ||||||
Braskem Idesa S.A.P.I (“Braskem Idesa") | (ii) | Mexico | 75.00 | 75.00 | 65.00 | ||||||
Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") | (ii) | Mexico | 75.00 | 75.00 | 65.00 | ||||||
Braskem Importação e Exportação Ltda. (“Braskem Importação”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
Braskem Incorporated Limited (“Braskem Inc”) |
| Cayman Islands | 100.00 | 100.00 | 100.00 | ||||||
Braskem International GmbH ("Braskem Austria") |
| Austria | 100.00 | 100.00 | 100.00 | ||||||
Braskem Netherlands B.V (“Braskem Holanda”) |
| Netherlands | 100.00 | 100.00 | 100.00 | ||||||
Braskem México, S de RL de CV (“Braskem México”) |
| Mexico | 100.00 | 100.00 | 100.00 | ||||||
Braskem Participações S.A. (“Braskem Participações”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
Braskem Petroquímica Ltda. (“Braskem Petroquímica”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
Braskem Petroquímica Chile Ltda. (“Petroquímica Chile”) |
| Chile | 100.00 | 100.00 | 100.00 | ||||||
Braskem Petroquímica Ibérica, S.L. ("Braskem Espanha") |
| Spain | 100.00 | 100.00 | 100.00 | ||||||
Braskem Qpar S.A. (“Braskem Qpar”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
Cetrel S.A. ("Cetrel") | (iii) | Brazil |
|
| 53.91 | ||||||
Common Industries Ltd. (“Common”) |
| British Virgin Islands | 100.00 | 100.00 | 100.00 | ||||||
Distribuidora de Água Camaçari S.A. ("Braskem Distribuidora") | (iii) | Brazil |
|
| 100.00 | ||||||
IQ Soluções & Química S.A.(“Quantiq”) | (iv) | Brazil |
|
| 100.00 | ||||||
IQAG Armazéns Gerais Ltda. (“IQAG”) | (iv) | Brazil |
|
| 100.00 | ||||||
Lantana Trading Co. Inc. (“Lantana”) |
| Bahamas | 100.00 | 100.00 | 100.00 | ||||||
Norfolk Trading S.A. (“Norfolk”) |
| Uruguay | 100.00 | 100.00 | 100.00 | ||||||
Politeno Empreendimentos Ltda. (“Politeno Empreendimentos”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
Rio Polímeros S.A. (“Riopol”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
|
|
|
|
| |||||||
Specific Purpose Entity ("SPE") |
|
|
|
|
| ||||||
Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) |
| Brazil | 100.00 | 100.00 | 100.00 | ||||||
(i) | Company merged in August 2012. | ||||||||||
(ii) | The Company incresed its interest in this investiment in November 2012. | ||||||||||
(iii) | Disvestments in December 2012. | ||||||||||
(iv) | Investments classified as non-current assets held for sale and presented in consolidated assets and liabilities in specific lines. |
2.4. Non-controlling interest in the equity and results of operationsof the Company’s subsidiaries
Equity | Profit (loss) for the period | ||||||
Jun/2013 | Dec/2012 | YTD13 | YTD12 | ||||
Braskem Idesa | 137,633 |
| 87,813 |
| 5,893 |
| (9,701) |
Cetrel |
|
|
|
|
|
| 5,580 |
Total | 137,633 | 87,813 | 5,893 | (4,121) |
13
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
2.5. Reconciliation of equity and profit (loss) for the periodbetween parent company and consolidated
Equity | Profit (loss) for the period | |||||||
Jun/2013 | Dec/2012 | YTD13 | YTD12 | |||||
Parent Company | 7,801,868 |
| 8,613,063 |
| 92,686 |
| (876,859) | |
Braskem shares owned by subsidiary Braskem Petroquímica | (48,892) | (48,892) | 0 |
| ||||
Non-controlling interest | 137,633 | 87,813 | 5,893 | (4,121) | ||||
Consolidated | 7,890,609 | 8,651,984 | 98,579 | (880,980) |
3. Held-for-sale assets and discontinued operations
(a) Assets held for sale - Quantiq and IQAG
These investments are in the process of sale and the Management of the Company estimates that the negotiations will be concluded in 2013.
The operating profits or losses of Quantiq and IQAG were presented in the segment information as operating segment “Chemical distribution” (Note30). The operating profits or losses of this segment in the period ended June 30, 2012 were R$18,997.
The profits and losses of Quantiq and IQAG in 2012are presented under “profit or loss from discontinued operations” in the consolidated statement of operations, and further detailed in item (b) of this Note.The assets and liabilities of these companies on December 31, 2012 are presented under “held-for-sale assets” and “held-for-sale liabilities”, respectively.These amounts should be assessed at the lowest between the book value as of December 31, 2012 and fair value, until the sale or eventual withdrawal from the divestment.
Profit or loss from discontinued operations includes only transactions with third parties.
The balances on June 30, 2013 and 2012 and the transactions during the period ended June 30, 2013 and 2012 of the parent company with Quantiq and IQAG are as follows:
Income statement transactions from January to June 30, 2013 | ||||||||||||||||
| ||||||||||||||||
Balances at June 30, 2013 | ||||||||||||||||
Assets | Liabilities | Sales /Purchases of products | ||||||||||||||
Current | Current | Non-current | ||||||||||||||
Trade accounts receivable | Dividends and interest on capital receivable | Total | Trade payables | Other receivable | Total | Payable notes | ||||||||||
| ||||||||||||||||
Assets held for sale | ||||||||||||||||
Quantiq | 3,188 | 7,912 | 11,100 | 20 | 1,954 | 1,974 | 61,157 | 67,258 | ||||||||
IQAG |
| 2,997 |
| |||||||||||||
|
|
| ||||||||||||||
Total | 3,188 | 7,912 | 11,100 | 20 | 1,954 | 1,974 | 64,154 | 67,258 |
Income statement transactions from January to June 30, 2012 | ||||||||
| ||||||||
Balances at December 31, 2012 | ||||||||
Assets | Liabilities | |||||||
Current | Current |
| Non-current | Sales /Purchases of products | ||||
Trade accounts receivable | Payable notes | Payable notes | ||||||
Assets held for sale | ||||||||
Quantiq | 610 | 1,954 | 81,418 | 100,450 | ||||
IQAG | 1,235 |
| ||||||
|
| |||||||
Total | 610 | 1,954 | 82,653 | 100,450 |
The statements of cash flow and of value added for 2012 include the results from discontinued operations.
14
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Discontinued operations – Cetrel, Braskem Distribuidora, Quantiq and IQAG
The results from investments available-for-sale (Note 3(a)) and from investments of Cetrel and Braskem Distribuidora sold in December 2012 (Note 1(a.3)) are included in these statements.
Income from discontinued operations
YTD12 | |
Net sales revenue | 334,950 |
Cost of products sold | (245,763) |
Gross profit | 89,187 |
| |
Selling, General and administrative expenses | (61,830) |
Other operating income, net | 2,394 |
| |
Operating profit | 29,751 |
| |
Financial results | 189 |
| |
Profit before income tax and social contribution | 29,940 |
| |
Current and deferred income tax and social contribution | (9,994) |
| |
Discontinued operations results | 19,946 |
| |
| |
Earnings per share attributable to the shareholders of the Company |
|
of continued operations at the end of the year (R$) (i) |
|
Basic earnings per share - preferred | 0.0577 |
Diluted earnings per share - preferred | 0.0577 |
(i) Increase in loss per share of the Company |
15
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Cash flow information from discontinued operations
YTD12 | ||
Profit before income tax and social contribution | 29,940 | |
| ||
Adjustments for reconciliation of profit |
| |
Depreciation, amortization and depletion | 7,466 | |
Interest and monetary and exchange variations, net | 1,765 | |
Other adjustments | 129 | |
| ||
39,300 | ||
| ||
Changes in operating working capital | (26,176) | |
| ||
| ||
Net cash generated by operating activities | 13,124 | |
| ||
Acquisitions to property, plant and equipment | (6,105) | |
Acquisitions of intangible assets | (100) | |
| ||
Net cash used in investing activities | (6,205) | |
| ||
Short-term and long-term debt |
| |
Payment of borrowings | (5,299) | |
| ||
| ||
Net cash used in financing activities | (5,299) | |
| ||
Decrease in cash and cash equivalents | 1,620 | |
| ||
Represented by |
| |
Cash and cash equivalents at the beginning of the year | 148,642 | |
Cash and cash equivalents at the end of the year | 150,262 | |
| ||
Decrease in cash and cash equivalents | 1,620 |
16
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Statement of value added for discontinued operations
Discontinued operations | YTD12 | |
Revenue | 434,240 | |
Sale of goods, products and services, including discontinued operations | 431,874 | |
Other income (expenses), net | 2,366 | |
| ||
Inputs acquired from third parties | (374,861) | |
Cost of products, goods and services sold | (338,803) | |
Material, energy, outsourced services and others | (36,058) | |
| ||
Gross value added | 59,379 | |
| ||
Depreciation, amortization and depletion | (694) | |
| ||
Net value added produced by the entity | 58,685 | |
| ||
Value added received in transfer | 7,712 | |
Financial income | 7,676 | |
Other | 36 | |
| ||
Total value added to distribute | 66,397 | |
| ||
| ||
Personnel | 1,645 | |
Direct compensation | 1,375 | |
Benefits | 208 | |
FGTS (Government Severance Pay Fund) | 62 | |
| ||
Taxes, fees and contributions | 14,093 | |
Federal | 10,201 | |
Municipal | 3,892 | |
| ||
Remuneration on third parties' capital | 30,713 | |
Financial expenses (including exchange variation) | 7,487 | |
Rentals | 23,226 | |
| ||
Remuneration on own capital | 19,946 | |
Result from discontinued operations | 19,946 | |
| ||
Value added distributed | 66,397 |
17
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
4. Cash and cash equivalents
Consolidated | ||||
Jun/2013 | Dec/2012 | |||
Cash and banks | 354,795 | 398,142 | ||
Cash equivalents: |
|
| ||
Domestic market | 1,965,324 | 1,293,164 | ||
Foreign market | 1,080,230 | 1,596,316 | ||
Total | 3,400,349 | 3,287,622 |
This table was presented in the 2012 annual financial statements of the Company, in Note 7.
5. Financial investments
Consolidated | |||||
Jun/2013 | Dec/2012 | ||||
Held-for-trading | |||||
Investments in FIM Sol | 38,027 | 50,803 | |||
Investments in foreign currency | 4,376 | 5,256 | |||
Shares | 1,679 | 3,023 | |||
Loans and receivables |
| ||||
Investments in FIM Sol | 77,469 | ||||
Investments in local currency | 513 | ||||
Held-to-maturity |
| ||||
Quotas of investment funds in credit rights (i) | (i) | 38,756 | 52,559 | ||
Restricted deposits |
| 1,281 | |||
Time deposit investment | 11,415 | 15,731 | |||
Investments in foreign currency | 222,297 | 307,639 | |||
Compensation of investments in foreign currency (ii) | (ii) | (222,297) | (307,639) | ||
Total | 94,253 | 206,635 | |||
In current assets | 39,149 | 172,146 | |||
In non-current assets | 55,104 | 34,489 | |||
Total | 94,253 | 206,635 |
This table was presented in the 2012 annual financial statements of the Company, in Note 8.
(i) On June 30, 2013, the Parent Company held junior subordinated shares issued by receivables-backed investment funds. These shares are measured by their redemption value and are held until the conclusion of operations of said funds. The funds issue two other types of shares that enjoy priority in compensation over the junior subordinated shares. The risk related to the operations of these funds is limited to the value of the shares held by the Parent Company.
(ii) On June 30, 2013, Braskem Holanda had a financial investments held-to-maturity that was irrevocably offset by an export prepayment agreement of the Parent Company, in the amount of US$100 million, as provided for in the credit assignment agreement entered into between these two companies and Banco Bradesco (Note 15). This accounting offset was carried out in accordance with CPC 39 and IAS 32, which provides for the possibility of offsetting financial instruments when there is intent and rightfully executable right to realize an asset and settle a liability simultaneously. On April 5, 2013, the amount of US$50 million was settled upon maturity.
18
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
6. Trade accounts receivable
Parent company | Consolidated | |||||||
Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | |||||
Consumers | ||||||||
Domestic market | 1,065,119 | 790,518 | 1,271,484 | 1,038,673 | ||||
Foreign market | 2,038,396 | 1,283,605 | 1,450,007 | 1,582,433 | ||||
Allowance for doubtful accounts | (215,875) | (203,922) | (275,429) | (256,884) | ||||
Total | 2,887,640 | 1,870,201 | 2,446,062 | 2,364,222 | ||||
In current assets | 2,747,302 | 1,834,491 | 2,302,954 | 2,326,480 | ||||
In non-current assets | 140,338 | 35,710 | 143,108 | 37,742 | ||||
Total | 2,887,640 | 1,870,201 | 2,446,062 | 2,364,222 |
This table was presented in the 2012 annual financial statements of the Company, in Note 9.
The Company realizes part of its trade accounts receivable through the sale of trade notes to funds that acquire receivables. These operations are not entitled to recourse, for which reason the trade notes are written-off at the moment of the operation.
7. Inventories
Parent company | Consolidated | |||||||
Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | |||||
Finished goods | 1,684,206 | 1,417,380 | 3,114,019 | 2,622,736 | ||||
Raw materials, production inputs and packaging | 710,957 | 908,298 | 944,194 | 1,175,451 | ||||
Maintenance materials | 113,342 | 113,118 | 220,145 | 211,517 | ||||
Advances to suppliers | 5,225 | 10,969 | 49,634 | 61,385 | ||||
Imports in transit and other | 38,549 | 28,785 | 46,031 | 30,966 | ||||
Total | 2,552,279 | 2,478,550 | 4,374,023 | 4,102,055 |
This table was presented in the 2012 annual financial statements of the Company, in Note 10.
19
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
8. Related parties
The information concerning related parties was presented in the 2012 annual financial statements of the Company, in Note 11.
(a) Parent company
Balances at June 30, 2013 | |||||||||||||||||
Assets | |||||||||||||||||
Current | Non-current | ||||||||||||||||
Trade accounts receivable | Related Parties |
| Other | Total | Related Parties | Total | |||||||||||
Receivable notes | Other receivable | Current accounts | Loan agreements | Other receivable | |||||||||||||
Subsidiaries | |||||||||||||||||
Braskem America | 8,155 | 4,340 |
|
|
| 12,495 |
|
|
|
| |||||||
Braskem Argentina | 95,054 |
|
|
|
| 95,054 |
|
|
|
| |||||||
Braskem Chile | 10,511 |
|
|
|
| 10,511 |
|
|
|
| |||||||
Braskem Holanda | 34,145 | 168 |
|
|
| 34,313 |
|
|
|
| |||||||
Braskem Idesa | 28,054 | 2,742 |
|
|
| 30,796 |
| 386,217 |
| 386,217 | |||||||
Braskem Inc | 1,266,885 |
|
|
|
| 1,266,885 |
| 8,415 |
| 8,415 | |||||||
Braskem México | 528 |
|
|
|
| 528 |
|
|
|
| |||||||
Braskem Participações |
| 97 |
|
|
| 97 | 1,632 |
|
| 1,632 | |||||||
Braskem Petroquímica | 21,880 |
|
| 34,000 | (i) | 55,880 |
|
|
|
| |||||||
Braskem Qpar | 502 |
|
|
|
| 502 | 1,216,519 |
|
| 1,216,519 | |||||||
Lantana |
|
|
|
|
|
|
| 60 |
| 60 | |||||||
Riopol | 9,542 |
|
| 93,500 | (i) | 103,042 |
|
|
|
| |||||||
1,475,256 | 7,347 |
| 127,500 |
| 1,610,103 | 1,218,151 | 394,692 |
| 1,612,843 | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Jointly-controlled subsidiary |
|
|
|
|
|
|
|
|
|
| |||||||
RPR | 159 |
|
| 439 | (i) | 598 |
|
|
|
| |||||||
159 |
|
| 439 |
| 598 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Associated companies |
|
|
|
|
|
|
|
|
|
| |||||||
Borealis Brasil S.A. ("Borealis") | 475 | 187 |
|
|
| 662 |
|
|
|
| |||||||
Sansuy Administração, Participação, Representação e Serviços Ltda ("Sansuy") | 14,931 |
|
|
|
| 14,931 |
|
|
|
| |||||||
15,406 | 187 |
|
|
| 15,593 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Related companies |
|
|
|
|
|
|
|
|
|
| |||||||
Odebrecht and subsidiaries | 2,872 |
|
| 419,100 | (ii) | 421,972 |
|
|
|
| |||||||
Petrobras and subsidiaries | 59,305 |
| 11,283 |
|
| 70,588 |
| 65,029 | 12,993 | 78,022 | |||||||
62,177 |
| 11,283 | 419,100 |
| 492,560 |
| 65,029 | 12,993 | 78,022 | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
SPE |
|
|
|
|
|
|
|
|
|
| |||||||
FIM Sol |
|
|
| 1,515,239 | (iii) | 1,515,239 |
|
|
|
| |||||||
|
|
| 1,515,239 |
| 1,515,239 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Total | 1,552,998 | 7,534 | 11,283 | 2,062,278 |
| 3,634,093 | 1,218,151 | 459,721 | 12,993 | 1,690,865 |
(i) Amounts under “dividends and interest on capital receivable”
(ii) Amounts under “other accounts receivable”
(iii) Amounts under “cash and cash equivalents”: R$1,477,212 and under “financial investments”: R$38,027
20
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Balances at June 30, 2013 | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | Non-Current | |||||||||||||||||||
Trade payables | Borrowings | Accounts payable to related parties | Total | Borrowings | Accounts payable to related parties | Total | ||||||||||||||
| Advance to export | Payable notes | Advance to export | Current accounts | Payable notes | |||||||||||||||
|
|
| ||||||||||||||||||
Subsidiaries |
| |||||||||||||||||||
Braskem America | 79 |
|
|
| 208,908 |
| 243 |
| 209,230 |
|
|
| 443,120 |
|
|
|
|
| 443,120 | |
Braskem Austria |
|
|
|
| 45,543 |
|
|
| 45,543 |
|
|
| 354,496 |
|
|
|
|
| 354,496 | |
Braskem Holanda |
|
|
|
| 27,317 |
|
|
| 27,317 |
|
|
| 2,844,444 |
|
|
|
|
| 2,844,444 | |
Braskem Importação |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 113 |
|
|
| 113 | |
Braskem Inc | 3,835,654 |
| 458,650 |
|
|
| 868 |
| 4,295,172 |
| 3,518,898 |
|
|
|
|
| 93,440 |
| 3,612,338 | |
Braskem Petroquímica | 2,743 |
|
|
|
|
|
|
| 2,743 |
|
|
|
|
| 47,691 |
|
|
| 47,691 | |
Braskem Qpar | 1,568 |
|
|
|
|
|
|
| 1,568 |
|
|
|
|
|
|
|
|
|
| |
Politeno Empreendimentos |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 15 |
|
|
| 15 | |
Riopol | 657 |
|
|
|
|
|
|
| 657 |
|
|
|
|
| 1,120,757 |
|
|
| 1,120,757 | |
3,840,701 |
| 458,650 |
| 281,768 |
| 1,111 |
| 4,582,230 |
| 3,518,898 |
| 3,642,060 |
| 1,168,576 |
| 93,440 |
| 8,422,974 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Related companies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Odebrecht and subsidiaries | 9,913 |
|
|
|
|
|
|
| 9,913 |
|
|
|
|
|
|
|
|
|
| |
Petrobras and subsidiaries | 1,441,480 |
|
|
|
|
|
|
| 1,441,480 |
|
|
|
|
|
|
|
|
|
| |
1,451,393 |
|
|
|
|
|
|
| 1,451,393 |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Total | 5,292,094 |
| 458,650 |
| 281,768 |
| 1,111 |
| 6,033,623 |
| 3,518,898 |
| 3,642,060 |
| 1,168,576 |
| 93,440 |
| 8,422,974 |
21
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Income statement transactions from January to June 30, 2013 | |||||||
Purchases of | Cost of | ||||||
raw materials, | Financial | production/general | |||||
Sales | services and | income | and administrative | ||||
of products | utilities | (expenses) | expenses | ||||
Subsidiaries | |||||||
Braskem America | 5,495 |
| (71,063) |
| |||
Braskem Argentina | 102,101 |
| 8,541 |
| |||
Braskem Austria |
|
| (47,905) |
| |||
Braskem Chile | 14,141 |
| 976 |
| |||
Braskem Finance |
|
| 1 |
| |||
Braskem Holanda | 137,576 |
| (307,266) |
| |||
Braskem Idesa | 24,814 |
| 38,118 |
| |||
Braskem Importação |
|
| (1) |
| |||
Braskem Inc | 1,049,513 | 327,887 | (613,698) |
| |||
Braskem Petroquímica | 235,928 | 103,142 |
|
| |||
Braskem Qpar | 5,874 | 58,969 |
|
| |||
Lantana |
|
| 5 |
| |||
Riopol | 95,653 | 66,020 |
|
| |||
1,671,095 | 556,018 | (992,292) |
| ||||
|
|
|
| ||||
Jointly-controlled subsidiary |
|
|
|
| |||
RPR | 10,167 | 175 |
|
| |||
10,167 | 175 |
|
| ||||
|
|
|
| ||||
Associated companies |
|
|
|
| |||
Borealis | 166,666 |
|
|
| |||
Sansuy | 18,556 | 4,352 |
|
| |||
185,222 | 4,352 |
|
| ||||
|
|
|
| ||||
Related companies |
|
|
|
| |||
Odebrecht and subsidiaries | 10,798 | 141,846 |
|
| |||
Petrobras and subsidiaries | 476,498 | 5,663,346 | 2,206 |
| |||
487,296 |
| 5,805,192 | 2,206 |
| |||
|
|
|
| ||||
Post-employment benefit plan |
|
|
|
| |||
Odebrecht Previdência Privada ("Odeprev") |
|
|
| 6,896 | |||
|
|
| 6,896 | ||||
|
|
|
| ||||
|
|
|
| ||||
Total | 2,353,780 | 6,365,737 | (990,086) | 6,896 |
22
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Balances at December 31, 2012 | |||||||||||||||||
Assets | |||||||||||||||||
Current | Non-current | ||||||||||||||||
Trade accounts receivable | Related Parties | Other | Total | Related Parties | Total | ||||||||||||
Receivable notes | Other receivable | Current accounts | Loan agreements | Other receivable | |||||||||||||
Subsidiaries | |||||||||||||||||
Braskem America | 20,295 | 4,011 |
|
|
| 24,306 |
|
|
|
| |||||||
Braskem Argentina | 95,273 |
| 20 |
|
| 95,293 |
|
|
|
| |||||||
Braskem Chile | 429 |
|
|
|
| 429 |
|
|
|
| |||||||
Braskem Holanda | 7,588 | 168 | 39 |
|
| 7,795 |
|
|
|
| |||||||
Braskem Idesa |
| 3,026 |
|
|
| 3,026 |
|
|
|
| |||||||
Braskem Inc | 478,182 |
|
|
|
| 478,182 |
| 7,584 |
| 7,584 | |||||||
Braskem Participações |
| 96 |
|
|
| 96 | 1,611 |
|
| 1,611 | |||||||
Braskem Petroquímica | 5,939 |
|
| 34,000 | (i) | 39,939 | 54,085 |
|
| 54,085 | |||||||
Braskem Qpar | 1,138 |
| 196 |
|
| 1,334 | 849,437 |
|
| 849,437 | |||||||
Lantana |
|
|
|
|
|
|
| 57 |
| 57 | |||||||
Riopol | 5,066 |
| 50 | 93,500 | (i) | 98,616 |
|
|
|
| |||||||
613,910 | 7,301 | 305 | 127,500 |
| 749,016 | 905,133 | 7,641 |
| 912,774 | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Jointly-controlled subsidiary |
|
|
|
|
|
|
|
|
|
| |||||||
RPR |
|
|
| 2,645 | (i) | 2,645 |
|
|
|
| |||||||
|
|
| 2,645 |
| 2,645 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Associated companies |
|
|
|
|
|
|
|
|
|
| |||||||
Borealis | 252 | 187 |
|
|
| 439 |
|
|
|
| |||||||
Sansuy | 15,609 |
|
|
|
| 15,609 |
|
|
|
| |||||||
15,861 | 187 |
|
|
| 16,048 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Related companies |
|
|
|
|
|
|
|
|
|
| |||||||
Odebrecht and subsidiaries |
|
|
| 652,148 | (ii) | 652,148 |
|
|
|
| |||||||
Petrobras and subsidiaries | 85,566 |
| 6,113 |
|
| 91,679 |
| 62,822 | 12,993 | 75,815 | |||||||
85,566 |
| 6,113 | 652,196 |
| 743,827 |
| 62,822 | 12,993 | 75,815 | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
SPE |
|
|
|
|
|
|
|
|
|
| |||||||
FIM Sol |
|
|
| 1,083,190 | (iii) | 1,083,190 |
|
|
|
| |||||||
|
|
| 1,083,190 |
| 1,083,190 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Total | 715,337 | 7,488 | 6,418 | 1,865,531 |
| 2,594,726 | 905,133 | 70,463 | 12,993 | 988,589 |
(i) Amounts under “dividends and interest on capital receivable”
(ii) Amounts under “other accounts receivable”
(iii) Amounts under “cash and cash equivalents”: R$954,919 and under “financial investments”: R$128,271
23
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Balances at December 31, 2012 | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Current | Non-Current | ||||||||||||||||||
Trade payables | Advances from customers | Borrowings | Accounts payable to related parties | Total | Borrowings | Accounts payable to related parties | Total | ||||||||||||
|
| Advance to export | Payable notes | Advance to export | Payable notes | ||||||||||||||
|
|
|
| ||||||||||||||||
Subsidiaries |
|
| |||||||||||||||||
Braskem America |
|
|
| 181,639 | 170 | 181,809 |
| 408,700 |
|
| 408,700 | ||||||||
Braskem Holanda |
| 80 |
| 24,382 |
| 24,462 |
| 2,521,323 |
|
| 2,521,323 | ||||||||
Braskem Importação |
|
|
|
|
|
|
|
| 113 |
| 113 | ||||||||
Braskem Inc | 2,677,575 |
| 53,406 |
| 800 | 2,731,781 | 3,245,562 |
| 86,181 | (i) | 3,331,743 | ||||||||
Braskem Petroquímica | 863 |
|
|
|
| 863 |
|
|
|
|
| ||||||||
Braskem Qpar | 40 |
|
|
|
| 40 |
|
|
|
|
| ||||||||
Politeno Empreendimentos |
|
|
|
|
|
|
|
| 15 |
| 15 | ||||||||
Riopol | 954 |
|
|
|
| 954 |
|
| 651,422 | (i) | 651,422 | ||||||||
2,679,432 | 80 | 53,406 | 206,021 | 970 | 2,939,909 | 3,245,562 | 2,930,023 | 737,731 |
| 6,913,316 | |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
Related companies |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Odebrecht and subsidiaries | 1,388 |
|
|
|
| 1,388 |
|
|
|
|
| ||||||||
Petrobras and subsidiaries | 1,193,461 |
|
|
|
| 1,193,461 |
|
|
|
|
| ||||||||
1,194,849 |
|
|
|
| 1,194,849 |
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total | 3,874,281 | 80 | 53,406 | 206,021 | 970 | 4,134,758 | 3,245,562 | 2,930,023 | 737,731 |
| 6,913,316 |
(i) Amount refers to “current accounts”
24
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Income statement transactions from January to June 30, 2012 | |||||||
Purchases of | Cost of | ||||||
raw materials, | Financial | production/general | |||||
Sales | services and | income | and administrative | ||||
of products | utilities | (expenses) | expenses | ||||
Subsidiaries | |||||||
Braskem America | 5,425 |
| 1,413 |
| |||
Braskem Argentina | 59,906 |
| 1,924 |
| |||
Braskem Chile | 21,438 |
| 119 |
| |||
Braskem Finance |
|
| 1 |
| |||
Braskem Holanda | 246,737 |
| (301,120) |
| |||
Braskem Idesa |
|
| 14 |
| |||
Braskem Inc | 21,069 | 1,096,587 | (631,305) |
| |||
Braskem Petroquímica | 180,481 | 100,280 |
|
| |||
Braskem Qpar | 22,548 | 41,926 |
|
| |||
Ideom | 2 | 5,500 |
|
| |||
Lantana |
|
| 4 |
| |||
Riopol | 71,688 | 49,295 |
|
| |||
629,294 | 1,293,588 | (928,950) |
| ||||
|
|
|
| ||||
Jointly-controlled subsidiary |
|
|
|
| |||
RPR | 1,940 | 1,482 | 743 |
| |||
1,940 | 1,482 | 743 |
| ||||
|
|
|
| ||||
Associated companies |
|
|
|
| |||
Borealis | 35,694 |
|
|
| |||
Sansuy | 13,504 | 6,902 |
|
| |||
49,198 | 6,902 |
|
| ||||
|
|
|
| ||||
Related companies |
|
|
|
| |||
Odebrecht and subsidiaries |
| 244,296 |
|
| |||
Petrobras and subsidiaries | 321,686 | 5,153,849 | 2,341 |
| |||
Other |
| 82,459 |
|
| |||
321,686 | 5,480,604 | 2,341 |
| ||||
Post employment benefit plan |
|
|
|
| |||
Odeprev |
|
|
| 12,490 | |||
|
|
| 12,490 | ||||
|
| �� |
| ||||
|
|
|
| ||||
Total | 1,002,118 | 6,782,576 | (925,866) | 12,490 |
25
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Consolidated
Balances at June 30, 2013 | |||||||||||||||||
Assets | Liabilities | ||||||||||||||||
Current | Non-current | Current | |||||||||||||||
Trade accounts receivable | Related parties | Other | Total | Related parties | Total | Trade payables | |||||||||||
Receivable notes | Other receivable | Loan agreements | Other receivable | ||||||||||||||
|
| ||||||||||||||||
Jointly-controlled subsidiary | |||||||||||||||||
RPR | 159 |
|
| 439 | (i) | 598 |
|
|
|
| |||||||
159 |
|
| 439 |
| 598 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Associated companies |
|
|
|
|
|
|
|
|
|
| |||||||
Borealis | 475 | 187 |
|
|
| 662 |
|
|
|
| |||||||
Sansuy | 14,931 |
|
|
|
| 14,931 |
|
|
|
| |||||||
15,406 | 187 |
|
|
| 15,593 |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Related companies |
|
|
|
|
|
|
|
|
|
| |||||||
Odebrecht and subsidiaries | 2,872 |
|
| 419,100 | (ii) | 421,972 |
|
|
| 111,080 | |||||||
Petrobras and subsidiaries | 65,774 |
| 20,143 |
|
| 85,917 | 65,029 | 66,301 | 131,330 | 1,537,106 | |||||||
68,646 |
| 20,143 | 419,100 |
| 507,889 | 65,029 | 66,301 | 131,330 | 1,648,186 | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
Total | 84,211 | 187 | 20,143 | 419,539 |
| 524,080 | 65,029 | 66,301 | 131,330 | 1,648,186 |
(i) Amount under “dividends and interest on capital receivable”
(ii) Amounts under “other accounts receivable”
Income statement transactions from January to June 30, 2013 | |||||||
Purchases of | Cost of | ||||||
raw materials, | Financial | production/general | |||||
Sales | services and | income | and administrative | ||||
of products | utilities | (expenses) | expenses | ||||
Jointly-controlled subsidiary | |||||||
RPR | 10,521 | 20,316 |
|
| |||
10,521 | 20,316 |
|
| ||||
|
|
|
| ||||
Associated companies |
|
|
|
| |||
Borealis | 180,194 |
|
|
| |||
Sansuy | 18,556 | 4,352 |
|
| |||
198,750 | 4,352 |
|
| ||||
|
|
|
| ||||
Related companies |
|
|
|
| |||
Odebrecht and subsidiaries | 10,798 | 142,166 |
|
| |||
Petrobras and subsidiaries | 667,142 | 8,930,305 | 2,206 |
| |||
677,940 | 9,072,471 | 2,206 |
| ||||
|
|
|
| ||||
Post employment benefit plan |
|
|
|
| |||
Odeprev |
|
|
| 8,840 | |||
|
|
| 8,840 | ||||
|
|
|
| ||||
|
|
|
| ||||
Total | 887,211 | 9,097,139 | 2,206 | 8,840 |
26
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Balances at December 31, 2012 | |||||||||||||||||
Assets | Liabilities | ||||||||||||||||
Current | Non-current | Current | |||||||||||||||
Trade accounts receivable | Related parties | Other | Total | Related parties | Total | Trade payables | |||||||||||
Receivable notes | Other receivable | Loan agreements | Other receivable | ||||||||||||||
|
| ||||||||||||||||
Jointly-controlled subsidiary | |||||||||||||||||
RPR |
|
| 2,645 | (i) | 2,645 |
|
|
|
| ||||||||
|
|
| 2,645 | 2,645 |
|
|
|
| |||||||||
|
|
|
| ||||||||||||||
Associated companies |
|
|
|
| |||||||||||||
Borealis | 1,017 | 187 |
| 1,204 |
|
|
|
| |||||||||
Sansuy | 15,640 |
|
| 15,640 |
|
|
|
| |||||||||
16,657 | 187 |
|
| 16,844 |
|
|
|
| |||||||||
|
|
|
| ||||||||||||||
Related companies | |||||||||||||||||
Odebrecht and subsidiaries |
|
|
| 652,100 | (ii) | 652,100 |
|
|
| 1,388 | |||||||
Petrobras and subsidiaries | 95,462 |
| 13,725 |
| 109,187 | 62,822 | 64,805 | 127,627 | 1,505,754 | ||||||||
95,462 |
| 13,725 | 652,100 | 761,287 | 62,822 | 64,805 | 127,627 | 1,507,142 | |||||||||
|
|
|
| ||||||||||||||
|
|
|
| ||||||||||||||
Total | 112,119 | 187 | 13,725 | 654,745 | 780,776 | 62,822 | 64,805 | 127,627 | 1,507,142 |
(i) Amount under “dividends and interest on capital receivable”
(ii) Amounts under “other accounts receivable”
Income statement transactions from January to June 30, 2012 | |||||||
Purchases of | Cost of | ||||||
raw materials, | Financial | production/general | |||||
Sales | services and | income | and administrative | ||||
of products | utilities | (expenses) | expenses | ||||
Jointly-controlled subsidiary | |||||||
RPR | 2,247 | 17,877 | 743 |
| |||
2,247 | 17,877 | 743 |
| ||||
Associated companies |
|
|
|
| |||
Borealis | 41,539 |
|
|
| |||
Sansuy | 13,504 | 6,902 |
|
| |||
55,043 | 6,902 |
|
| ||||
Related companies |
|
|
|
| |||
Odebrecht and subsidiaries |
| 244,344 |
|
| |||
Petrobras and subsidiaries | 477,410 | 8,352,188 | 1,992 |
| |||
Other |
| 83,084 |
|
| |||
477,410 | 8,679,616 | 1,992 |
| ||||
Post employment benefit plan |
|
|
|
| |||
Odeprev |
|
|
| 14,469 | |||
|
|
| 14,469 | ||||
|
|
|
| ||||
|
|
|
| ||||
Total | 534,700 | 8,704,395 | 2,735 | 14,469 |
27
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(c) Key management personnel
Parent company and Consolidated | ||||
Non-current liabilities | Jun/2013 | Dec/2012 | ||
Long-term incentives | 2,812 | 2,897 | ||
Total | 2,812 | 2,897 | ||
Income statement transactions | Parent company and Consolidated | |||
YTD13 | YTD12 | |||
Remuneration | ||||
Short-term benefits to employees and managers | 23,432 | 26,302 | ||
Post-employment benefit | 140 | 102 | ||
Long-term incentives | 51 | 298 | ||
Total | 23,623 | 26,702 |
9. Taxes recoverable
Parent company | Consolidated | |||||||||
Note | Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | ||||||
Parent Company and subsidiaries in Brazil | ||||||||||
IPI | 33,969 | 31,647 | 36,485 | 32,734 | ||||||
Value-added tax on sales and services (ICMS) - normal operations | 425,254 | 447,086 | 853,755 | 845,045 | ||||||
ICMS - credits from PP&E | 86,685 | 108,910 | 123,309 | 178,920 | ||||||
Social integration program (PIS) and social contribution on | 384,271 | 419,170 | 441,339 | 484,692 | ||||||
revenue (COFINS) - normal operations | ||||||||||
PIS and COFINS - credits from PP&E | 134,467 | 147,764 | 262,862 | 273,693 | ||||||
PIS and COFINS - Provisional measure 613/13 | (a) | 55,928 |
| 78,551 |
| |||||
PIS and COFINS - Law 9,718/98 | 120,383 | 158,570 | 127,238 | 171,140 | ||||||
PIS - Decree-Law 2,445 and 2,449/88 | 69,772 | 70,856 | 102,450 | 104,256 | ||||||
Income tax and social contribution (IR and CSL) | 347,408 | 323,924 | 496,660 | 452,867 | ||||||
REINTEGRA program | (b) | 247,281 | 194,694 | 265,324 | 217,775 | |||||
Other | 137,881 | 129,612 | 160,392 | 150,980 | ||||||
Foreign subsidiaries | ||||||||||
Value-added tax | (c) | 185,615 | 90,301 | |||||||
Income tax | 836 | 177 | ||||||||
Other | 1,590 | 765 | ||||||||
Total | 2,043,299 | 2,032,233 | 3,136,406 | 3,003,345 | ||||||
Current assets | 1,086,969 | 1,005,842 | 1,683,079 | 1,476,211 | ||||||
Non-current assets | 956,330 | 1,026,391 | 1,453,327 | 1,527,134 | ||||||
Total | 2,043,299 | 2,032,233 | 3,136,406 | 3,003,345 |
The information related to taxes recoverable was presented in the 2012 annual financial statements of the Company, in Note 12.
28
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a) PIS and COFINS – Provisional Presidential Decree No. 613/13
Provisional Presidential Decree No. 613 was published on May 8, 2013, which, among others, reduced the PIS and COFINS taxes on imports and on revenue from sales in the domestic market of inputs manufactured by domestic manufacturers and offers fresh credit to the chemical and petrochemical production chain.
The price of raw materials acquired by Braskem includes PIS and COFINS taxes at 1%. While recording such purchases, Braskem considers a credit related to these contributions at the rate of 9.25% thus generating a benefit equivalent to 8.25% of the value of such purchases. Starting 2016, the rate of 1% will gradually increase to reach 9.25% as of 2018.
The realization of these credits may occur in two ways: (i) offset of overdue or falling due liabilities related to taxes levied by the Federal Revenue Service; or (ii) cash reimbursement.
(b) REINTEGRA Program
In the period ended June 30, 2013, the Company recognized credits in the amount of R$92,587 (Note 27) and offset the amount of R$45,038.
(c) Value added tax (“VAT”)
On June 30, 2013, this line included:
(i) R$33,734 from sales by Braskem Alemanha to other countries. These credits are refunded in cash by the local government; and
(ii) R$151,881 from purchases of machinery and equipment for the Ethylene XXI Project. These credits may be refunded, in cash, by the local government or offset with VAT due from the start of operations of the project.
10. Other accounts receivable - consolidated
The main change is due to the receipt of R$233,000 from the divestment, in December 2012, of the interests held by the Parent Company in Cetrel and Braskem Distribuidora.
The information related to other accounts receivable was presented in the 2012 annual financial statements, in Note 15.
11. Judicial deposits
Consolidated | |||||
Jun/2013 | Dec/2012 | ||||
Judicial deposits | |||||
Tax contingencies | 97,871 | 101,499 | |||
Labor and social security contingencies | 77,020 | 73,177 | |||
Other | 4,918 | 4,942 | |||
Total | 179,809 | 179,618 |
The information related to judicial deposits was presented in the 2012 annual financial statements of the Company, in Note 13.
29
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
12. Investments
The information related to investments was presented in the Company’s 2012 annual financial statements, in Note 16.
(a) Information on investments
(a.1) Investments of the Parent Company
Interest in | Adjusted net profit (loss) | Adjusted | |||||||||
total capital (%) | for the period | equity | |||||||||
Jun/2013 | Jun/2013 | Jun/2012 | Jun/2013 | Dec/2012 | |||||||
Subsidiaries | |||||||||||
Braskem Alemanha | 5.66 | (34,616) | (45,348) | 989,792 | 961,450 | ||||||
Braskem America | (i) |
|
| 252,851 |
|
| |||||
Braskem Argentina | 96.77 | 169 | (523) | 8,019 | 7,850 | ||||||
Braskem Austria |
| 100.00 | (346) | - | (300) | 81 | |||||
Braskem Chile | 99.02 | 48 | 150 | 1,830 | 1,782 | ||||||
Braskem Distribuidora | (ii) |
|
| 6,561 |
|
| |||||
Braskem Holanda | 100.00 | (3,195) | 11,414 | 1,241,860 | 1,188,368 | ||||||
Braskem Finance | 100.00 | (10,224) | (25,643) | (127,653) | (117,429) | ||||||
Braskem Idesa | 75.00 | 23,507 | (27,719) | 550,532 | 351,249 | ||||||
Braskem Importação | 0.04 | (1) | (1) | 203 | 203 | ||||||
Braskem Inc. | 100.00 | (99,240) | 27,475 | 202,589 | 301,829 | ||||||
Braskem Participações | 100.00 | 1,518 | 286 | (360) | (1,945) | ||||||
Braskem Petroquímica | 100.00 | 45,285 | 22,280 | 1,639,258 | 1,593,973 | ||||||
Braskem Qpar | 96.96 | (105,614) | (49,646) | 2,430,475 | 2,536,089 | ||||||
Cetrel | (iii) |
|
| 11,569 |
|
| |||||
IQAG | (iv) | 0.12 |
| 627 |
| 3,942 | |||||
Petroquímica Chile | 97.96 | (962) | 212 | 5,573 | 6,535 | ||||||
Politeno Empreendimentos | 99.98 | (6) | (2) | 601 | 607 | ||||||
Quantiq | (iv) | 99.90 |
| 7,524 |
| 249,383 | |||||
Riopol | 100.00 | 246,472 | 43,356 | 2,878,810 | 2,632,337 | ||||||
| |||||||||||
Jointly-controlled subsidiary |
| ||||||||||
RPR | 33.20 | 6,483 | 2,696 | 116,798 | 128,591 |
(i) Investment transferred to the subsidiary Braskem Alemanha in December 2012.
(ii) Company divested in December 2012.
(iii)Investment divested in December 2012.
(iv)Assets held for sale.
Interest in | Adjusted net profit (loss) | Adjusted | |||||||||
total capital (%) | for the period | equity | |||||||||
Jun/2013 | Jun/2013 | Jun/2012 | Jun/2013 | Dec/2012 | |||||||
Associates | |||||||||||
Borealis | 20.00 | 5,492 | 5,703 | 166,746 | 165,459 | ||||||
Companhia de Desenvolvimento |
| ||||||||||
Rio Verde ("Codeverde") | 35.97 | (406) | 649 | 45,671 | 46,342 | ||||||
Sansuy | 20.00 | (11) | (12) | 1,709 | 1,722 |
30
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a.2) Investments of subsidiaries
Interest in | Adjusted net profit (loss) | Adjusted | |||||||||
total capital (%) | for the period | equity | |||||||||
Jun/2013 | Jun/2013 | Jun/2012 | Jun/2013 | Dec/2012 | |||||||
Braskem Alemanha | |||||||||||
Braskem America | (i) | 100.00 | 11,329 |
| 884,552 | 810,315 | |||||
Braskem America |
| ||||||||||
Braskem America Finance | 100.00 | 72 | (505) | 1,108 | (4,206) | ||||||
Braskem Austria |
|
| |||||||||
Braskem Austria Finance | (v) | 100.00 |
|
| 47 | 47 | |||||
Braskem Espanha | (vi) | 100.00 |
|
| 8 | 8 | |||||
Braskem Chile |
|
| |||||||||
Braskem Argentina | (x) |
|
| (523) |
| 7,850 | |||||
Petroquímica Chile | 2.03 | (962) | 212 | 5,573 | 6,535 | ||||||
Braskem Distribuidora |
|
| |||||||||
Lantana | (viii) |
|
| 6,845 |
|
| |||||
Braskem Holanda |
| ||||||||||
Braskem Alemanha | 94.34 | (34,616) | (45,348) | 989,792 | 961,450 | ||||||
Propilsur | 49.00 | (2,433) | (515) | 104,427 | 109,695 | ||||||
Polimerica | (ix) |
|
| (13) |
|
| |||||
Braskem Idesa |
|
| |||||||||
Braskem Idesa Serviços | 100.00 | 788 | 234 | 3,747 | 2,726 | ||||||
Braskem Importação |
| ||||||||||
Braskem México | 0.03 | 1,557 | 259 | 1,626 |
| ||||||
Braskem Inc. |
|
| |||||||||
Braskem Chile | 0.98 | 48 | 150 | 1,830 | 1,782 | ||||||
Lantana | 3.66 | (44) | 6,845 | (588) | (544) | ||||||
Petroquímica Chile | 0.01 | (962) | 212 | 5,573 | 6,535 | ||||||
Braskem Participações |
|
| |||||||||
Braskem Argentina | (x) | 3.23 | 169 |
| 8,019 | 7,850 | |||||
Braskem Importação | (vii) | 99.96 | (1) |
| 203 | 203 | |||||
Braskem México | 99.97 | 1,557 | 259 | 1,626 |
| ||||||
Politeno Empreendimentos | 0.02 | (6) | (2) | 601 | 607 | ||||||
Quantiq | (iv) | 0.10 |
| 7,524 |
| 249,383 | |||||
Lantana | (viii) | 96.34 | (44) |
| (588) | (544) | |||||
Braskem Petroquímica |
|
| |||||||||
Braskem Qpar | 3.04 | (105,614) | (49,646) | 2,430,475 | 2,536,089 | ||||||
Cetrel | (iii) |
|
| 11,569 |
|
| |||||
Braskem Qpar |
|
| |||||||||
Common | 100.00 | 699 | 550 | 8,248 | 7,550 | ||||||
Common |
|
| |||||||||
Norfolk | 100.00 | 7,284 | 6,076 | 77,353 | 70,069 | ||||||
Quantiq |
|
| |||||||||
IQAG | (iv) | 99.88 |
| 627 |
| 3,942 |
(v) Company incorporated in August 2012.
(vi) Company incorporated in June 2012.
(vii) Company acquired by Braskem Participações in August 2012.
(viii) Company acquired by Braskem Participações in October 2012.
(ix) Withdrawal of the interest in this investment in November 2012
(x) Shares acquired from Braskem Participações in April 2013.
31
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Changes in investments – parent company
Dividends | Equity in results of investees | Currency | |||||||||||||||||
Balance at | Capital | and interest | Effect | Adjustment of | Goodwill | Interest | translation | Balance at | |||||||||||
Dec/2012 | increase | on equity | of results | profit in inventories | amortization | Other | loss | adjustments | Jun/2013 | ||||||||||
Subsidiaries and jointly-controlled subsidiaries | |||||||||||||||||||
Domestic subsidiaries | |||||||||||||||||||
Braskem Petroquímica | 1,452,589 |
|
| 45,285 | (131) | (1,718) |
|
|
| 1,496,025 | |||||||||
Braskem Qpar | 3,367,628 |
|
| (102,402) | 2,155 | (56,889) | 47,746 | (i) |
|
| 3,258,238 | ||||||||
Politeno Empreendimentos | 607 |
|
| (6) |
|
|
|
|
| 601 | |||||||||
Quantiq | 253,272 |
| (7,912) |
|
|
|
|
|
| 245,360 | |||||||||
Riopol | 2,630,417 |
|
| 246,472 | 1,297 |
|
|
|
| 2,878,186 | |||||||||
RPR | 42,698 |
|
| (3,916) |
|
|
|
|
| 38,782 | |||||||||
7,747,211 |
| (7,912) | 185,433 | 3,321 | (58,607) | 47,746 |
|
| 7,917,192 | ||||||||||
Foreign subsidiaries | |||||||||||||||||||
Braskem Alemanha | 53,753 |
|
| (1,959) |
|
|
|
| 4,232 | 56,026 | |||||||||
Braskem Argentina | 7,850 |
|
| 169 |
|
|
|
|
| 8,019 | |||||||||
Braskem Austria | 81 |
|
|
|
|
| (81) |
|
|
| |||||||||
Braskem Chile | 1,782 |
|
| 48 |
|
|
|
|
| 1,830 | |||||||||
Braskem Holanda | 1,177,221 |
|
| (3,195) |
|
|
|
| 67,834 | 1,241,860 | |||||||||
Braskem Idesa | 263,437 | 106,214 |
| 17,630 |
|
|
| (1,994) | 27,612 | 412,899 | |||||||||
Braskem Inc. | 301,829 |
|
| (99,240) |
|
|
|
|
| 202,589 | |||||||||
Petroquímica Chile | 6,535 |
|
| (962) |
|
|
|
|
| 5,573 | |||||||||
1,812,488 | 106,214 |
| (87,509) |
|
| (81) | (1,994) | 99,678 | 1,928,796 | ||||||||||
Total subsidiaries and jointly-controlled subsidiaries | 9,559,699 | 106,214 | (7,912) | 97,924 | 3,321 | (58,607) | 47,665 | (1,994) | 99,678 | 9,845,988 | |||||||||
Associates | |||||||||||||||||||
Domestic subsidiaries | |||||||||||||||||||
Borealis | 31,945 |
|
| 1,403 |
|
|
|
|
| 33,348 | |||||||||
Nitrocolor |
| 38 |
|
|
|
| (38) |
|
|
| |||||||||
Total associates | 31,945 | 38 |
| 1,403 |
|
| (38) |
|
| 33,348 | |||||||||
Total subsidiaries, jointly-controlled subsidiaries and associates | 9,591,644 | 106,252 | (7,912) | 99,327 | 3,321 | (58,607) | 47,627 | (1,994) | 99,678 | 9,879,336 | |||||||||
(i) Settlement of this subsidiary contingencies that were recorded when the purchase. |
32
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(c) Breakdown of equity accounting results
Parent company | Consolidated | |||||||
Jun/2013 | Jun/2012 | Jun/2013 | Jun/2012 | |||||
Equity in results of subsidiaries, associate and jointly-controlled | 102,648 | 321,851 | (3,194) | 707 | ||||
Amortization of fair value adjustment | (58,607) | (i) | (45,509) |
|
| |||
Provision for losses on investments | (9,106) | (25,625) |
|
| ||||
Other |
| 1,373 |
| 1,373 | ||||
34,935 | 252,090 | (3,194) | 2,080 |
(i) Amortization of fair value adjustments comprises the following:
· R$56,889 related to the amortization of fair value adjustments on the assets and liabilities from the acquisition of Quattor. This amount is distributed in the following items of the consolidated statement of operations: “net sales revenue” of R$8,859; “cost of sales” of R$46,033; “general and administrative expenses” of R$45, and “financial results” of R$6,661. The effect of deferred income tax and social contribution was R$4,709.
· R$1,718 related to the amortization of fair value adjustments on property, plant and equipment of the subsidiary Braskem Petroquímica.
13. Property, plant and equipment
Consolidated | |||||||||||
Jun/2013 | Dec/2012 | ||||||||||
Accumulated | Accumulated | ||||||||||
depreciation/ | depreciation/ | ||||||||||
Cost | depletion | Net | Cost | depletion | Net | ||||||
Land | 421,001 |
| 421,001 | 417,077 |
| 417,077 | |||||
Buildings and improvements | 1,770,606 | (733,643) | 1,036,963 | 1,749,193 | (699,935) | 1,049,258 | |||||
Machinery, equipment and installations | 24,749,437 | (10,119,615) | 14,629,822 | 24,514,118 | (9,296,148) | 15,217,970 | |||||
Projects in progress | 6,095,224 |
| 6,095,224 | 4,057,731 |
| 4,057,731 | |||||
Other | 847,911 | (410,064) | 437,847 | 805,160 | (370,411) | 434,749 | |||||
Total | 33,884,179 | (11,263,322) | 22,620,857 | 31,543,279 | (10,366,494) | 21,176,785 |
This table was presented in the Company’s 2012 annual financial statements, in Note 17.
Impairment test for property, plant and equipment
There were no significant events or circumstances in the period ended June 30, 2013 that indicate the need for impairment testing on the property, plant and equipment.
33
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
14. Intangible Assets
Consolidated | |||||||||||
Jun/2013 | Dec/2012 | ||||||||||
Accumulated | Accumulated | ||||||||||
Cost | amortization | Net | Cost | amortization | Net | ||||||
Goodwill based on future profitability | 3,187,722 | (1,128,804) | 2,058,918 | 3,187,722 | (1,128,804) | 2,058,918 | |||||
Trademarks and patents | 200,605 | (75,609) | 124,996 | 199,367 | (71,141) | 128,226 | |||||
Software and use rights | 435,118 | (210,908) | 224,210 | 402,396 | (183,908) | 218,488 | |||||
Contracts with customers and suppliers | 701,560 | (181,125) | 520,435 | 685,890 | (150,556) | 535,334 | |||||
4,525,005 | (1,596,446) | 2,928,559 | 4,475,375 | (1,534,409) | 2,940,966 |
This table was presented in the 2012 annual financial statements of the Company, in Note 18.
Impairment testing of intangible assets with indefinite useful life
There were no significant events or circumstances in the period ended June 30, 2013 that indicated the need for impairment testing of the intangible assets with indefinite useful life.
15. Borrowings
Annual financial charges |
|
| Consolidated | ||||||
Average interest (unless otherwise stated) | |||||||||
Monetary restatement | Jun/2013 | Dec/2012 | |||||||
Foreign currency | |||||||||
Bonds and Medium term notes (MTN) | Note 15 (a) | Note 15 (a) | 9,927,075 | 9,278,759 | |||||
Advances on exchange contracts | US dollar exchange variation | 1.54% |
| 173,939 | |||||
Export prepayments | Note 15 (b) | Note 15 (b) | 977,944 | 513,610 | |||||
BNDES | Note 15 (c) | Note 15 (c) | 508,738 | 495,260 | |||||
Export credit notes | Note 15 (d) | Note 15 (d) | 853,840 | 787,687 | |||||
Working capital | US dollar exchange variation | 1.54% above Libor | 1,089,536 | 917,283 | |||||
Other | US dollar exchange variation | 4.00% above Libor | 2,439 |
| |||||
Other | Exchange variation (UMBNDES) | 6.06% |
| 768 | |||||
Other | US dollar exchange variation | 1.15% | 236,215 |
| |||||
Transactions costs, net | (84,174) | (60,285) | |||||||
Local currency | |||||||||
Export credit notes | Note 15 (d) | Note 15 (d) | 2,518,938 | 2,384,414 | |||||
BNDES | Note 15 (c) | Note 15 (c) | 2,294,795 | 2,381,892 | |||||
BNB/ FINAME/ FINEP/ FUNDES | 6.98% | 608,067 | 605,273 | ||||||
BNB/ FINAME/ FINEP/ FUNDES | TJLP | 0.32% | 20,231 | 25,746 | |||||
Other | TJLP | 2.87% |
| 7,292 | |||||
Total | 18,953,644 | 17,511,638 | |||||||
Current liabilities | 2,796,159 | 1,836,028 | |||||||
Non-current liabilities | 16,157,485 | 15,675,610 | |||||||
Total | 18,953,644 | 17,511,638 |
The information related to borrowings was presented in the 2012 annual financial statements of the Company, in Note 19.
34
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a) Bonds and MTN
Issue amount | Interest | Consolidated | ||||||||
Issue date | (US$ in thousands) | Maturity | (% per year) | Jun/2013 | Dec/2012 | |||||
July 1997 | 250.000 | June 2015 | 9.38 | 145,227 | 134,175 | |||||
January 2004 | 250.000 | January 2014 | 11.75 | 180,128 | 169,609 | |||||
September 2006 | 275.000 | January 2017 | 8.00 | 295,019 | 275,270 | |||||
June 2008 | 500.000 | June 2018 | 7.25 | 987,796 | 1,026,894 | |||||
May 2010 | 400.000 | May 2020 | 7.00 | 889,636 | 820,621 | |||||
May 2010 | 350.000 | May 2020 | 7.00 | 783,452 | 722,596 | |||||
October 2010 | 450.000 | no maturity date | 7.38 | 1,014,585 | 935,776 | |||||
April 2011 | 750.000 | April 2021 | 5.75 | 1,675,982 | 1,545,798 | |||||
July 2011 | 500.000 | July 2041 | 7.13 | 1,142,442 | 1,053,701 | |||||
February 2012 | 250.000 | April 2021 | 5.75 | 560,535 | 516,995 | |||||
February 2012 | 250.000 | no maturity date | 7.38 | 563,659 | 519,876 | |||||
May 2012 | 500.000 | May 2022 | 5.38 | 1,117,393 | 1,030,598 | |||||
July 2012 | 250.000 | July 2041 | 7.13 | 571,221 | 526,850 | |||||
Total | 4,975,000 | 9,927,075 | 9,278,759 |
(b) Export prepayments (“EPP”)
Initial amount | ||||||||||
of the transaction | Consolidated | |||||||||
Issue date | (US$ thousand) | Maturity | Charges (% per year) | Jun/2013 | Dec/2012 | |||||
May 2010 | 150.000 | May-2015 | US dollar exchange variation + semiannual Libor + 2.40 | 333,231 | 307,406 | |||||
December 2010 | 100.000 | December-2017 | US dollar exchange variation + semiannual Libor + 2.47 | 223,207 | 206,204 | |||||
January 2013 | 200.000 | November-2022 | US dollar exchange variation + semiannual Libor + 1.10 | 421,506 |
| |||||
Total | 450.000 | 977,944 | 513,610 |
(c) BNDES borrowings
|
| Consolidated | ||||||||
Projects | Issue date | Maturity | Charges (% per year) | Jun/2013 | Dec/2012 | |||||
Foreign currency | ||||||||||
Other | 2006 | October-2016 | US dollar exchange variation + 6.43 | 7,267 | 7,708 | |||||
Other | 2006 | January-2013 | Monetary variation (UMBNDES) + 5.46 |
| 100 | |||||
Limit of credit UNIB-South | 2006 | July-2014 | US dollar exchange variation + 5.45 to 5.65 | 7,558 | 10,747 | |||||
Braskem Qpar expansion | 2006/2007/2008 | April-2016 | US dollar exchange variation + 6.13 to 6.43 | 17,953 | 21,072 | |||||
Braskem Qpar expansion | 2006/2007/2008 | January-2015 | Monetary variation (UMBNDES) + 6.28 | 1,723 | 2,099 | |||||
Limit of credit I | 2007 | April-2015 | US dollar exchange variation + 4.95 to 5.84 | 35,013 | 42,519 | |||||
Green PE | 2009 | July-2017 | US dollar exchange variation + 6.21 | 42,920 | 44,440 | |||||
Limit of credit II | 2009 | January-2017 | US dollar exchange variation + 6.21 | 88,809 | 93,354 | |||||
New plant PVC Alagoas | 2010 | January-2020 | US dollar exchange variation + 6.21 | 117,523 | 101,647 | |||||
Limit of credit III | 2011 | October-2018 | US dollar exchange variation + 6.05 to 6.08 | 149,092 | 143,186 | |||||
Butadiene | 2011 | January-2021 | US dollar exchange variation + 6.08 | 40,880 | 28,388 | |||||
508,738 | 495,260 | |||||||||
Local currency | ||||||||||
Other | 2006 | September-2016 | TJLP + 2.80 | 58,233 | 67,218 | |||||
Limit of credit UNIB-South | 2006 | Mai-2014 | TJLP + 2.02 to 2.32 | 26,192 | 44,432 | |||||
Braskem Qpar expansion | 2006/2007/2008 | February-2014 | TJLP + 1.00 to 3.30 | 152,453 | 197,546 | |||||
Limit of credit I | 2007 | April-2015 | TJLP + 1.81 to 2.32 | 129,821 | 173,477 | |||||
Green PE | 2008/2009 | June-2017 | TJLP + 0.00 to 4.78 | 367,363 | 414,278 | |||||
Limit of credit II | 2009 | January-2017 | TJLP + 2.58 to 3.58 | 279,863 | 319,039 | |||||
Limit of credit II | 2009 | January-2017 | 4.50 | 12,505 | 14,252 | |||||
New plant PVC Alagoas | 2010 | December-2019 | TJLP + 0.00 to 3.58 | 381,634 | 351,406 | |||||
New plant PVC Alagoas | 2010 | December-2019 | 5.50 | 43,419 | 43,066 | |||||
Limit of credit III | 2011 | September-2018 | TJLP + 2.05 to 3.45 | 596,292 | 582,981 | |||||
Limit of credit III | 2011 | July-2018 | 4.00 | 103,078 | 64,095 | |||||
Butadiene | 2011 | December-2020 | TJLP + 0.00 to 3.45 | 143,942 | 110,102 | |||||
2,294,795 | 2,381,892 | |||||||||
| ||||||||||
Total | 2,803,533 | 2,877,152 |
35
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(d) Export credit notes (“NCE”)
Initial amount |
|
| Consolidated | ||||||||
Issue date |
| of the transaction | Maturity | Charges (% per year) | Jun/2013 | Dec/2012 | |||||
Foreign currency | |||||||||||
November 2006 | 167,014 | May 2018 | Us dollar exchange variation + 8.10 | 174,800 | 161,150 | ||||||
April 2007 | 101,605 | March 2018 | Us dollar exchange variation + 7.87 | 112,766 | 104,029 | ||||||
May 2007 | 146,010 | May 2019 | Us dollar exchange variation + 7.85 | 167,257 | 154,298 | ||||||
January 2008 | 266,430 | February 2020 | Us dollar exchange variation + 7.30 | 342,381 | 315,973 | ||||||
March 2008 | 41,750 | March 2016 | Us dollar exchange variation + 7.50 | 56,636 | 52,237 | ||||||
722,809 | 853,840 | 787,687 | |||||||||
Local currency | |||||||||||
April 2010 | 50,000 | March 2014 | 100% of CDI | 67,932 | 65,678 | ||||||
June 2010 | 200,000 | June 2014 | 100% of CDI | 265,271 | 256,471 | ||||||
February 2011 | 250,000 | February 2014 | 99% of CDI | 246,029 | 297,434 | ||||||
April 2011 | (i) | 450,000 | April 2019 | 112.5% of CDI | 457,261 | 456,876 | |||||
June 2011 | 80,000 | June 2014 | 98.5% of CDI | 94,657 | 91,563 | ||||||
August 2011 | (i) | 400,000 | August 2019 | 112.5% of CDI | 402,798 | 402,527 | |||||
January 2012 | (ii) | 200,000 | December 2013 | 103% of CDI |
| 217,320 | |||||
June 2012 | 100,000 | June 2014 | 103% of CDI | 107,490 | 103,818 | ||||||
September 2012 | 300,000 | September 2015 | 103% of CDI | 316,494 | 305,684 | ||||||
October 2012 | 85,000 | September 2014 | 98.5% of CDI | 89,340 | 86,419 | ||||||
November 2012 | (iii) | 100,000 | November 2013 | 106% of CDI |
| 100,624 | |||||
February 2013 | (iv) | 100,000 | February 2016 | 8.00 | 101,183 | ||||||
February 2013 | (iv) | 50,000 | February 2016 | 7.50 | 50,515 | ||||||
February 2013 | (iv) | 100,000 | February 2016 | 8.00 | 100,880 | ||||||
February 2013 | (iv) | 50,000 | February 2016 | 8.00 | 50,440 | ||||||
February 2013 | (iv) | 100,000 | February 2016 | 8.00 | 100,816 | ||||||
March 2013 | (iv) | 50,000 | March 2016 | 8.00 | 50,246 | ||||||
March 2013 | (iv) | 17,500 | March 2016 | 8.00 | 17,586 | ||||||
Total | 2,682,500 | 2,518,938 | 2,384,414 |
(i) The Company enters into swap transactions for these NCE contracts in order to offset the variation in the Interbank Certificate of Deposit (CDI) rate.
(ii) Financing paid in advance in March 2013.
(iii) Financing paid in advance in January 2013.
(iv) The Company enters into swap transactions for these NCE contracts (from 88.20% to 92.70% of CDI).
36
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(e) Payment schedule
The maturity profile of the long-term amounts is as follows:
Consolidated | ||||
Jun/2013 | Dec/2012 | |||
2014 | 482,322 | 1,759,551 | ||
2015 | 1,654,020 | 1,515,498 | ||
2016 | 1,684,636 | 1,092,519 | ||
2017 | 818,626 | 715,362 | ||
2018 | 1,566,406 | 1,512,383 | ||
2019 | 1,216,596 | 1,146,166 | ||
2020 | 2,094,600 | 1,884,761 | ||
2021 | 2,275,051 | 2,059,513 | ||
2022 and thereafter | 4,365,228 | 3,989,857 | ||
Total | 16,157,485 | 15,675,610 |
(f) Capitalized financial charges - consolidated
The Company capitalized financial charges in the period ended June 30, 2013 in the amount of R$66,694 (R$78,883 in the period ended June 30, 2012), including monetary variation and part of the exchange variation. The average rate of these charges applied on ongoing projects was 6.90% p.a. (7.27% p.a. in the period ended June 30, 2012).
(g) Guarantees
Braskem gave collateral for part of its borrowings as follows:
Total | ||||||||
debt | Total | |||||||
Loans | Maturity | Jun/2013 | guaranteed | Guarantees | ||||
BNB | December 2022 | 293,357 | 293,357 | Mortgage of plants, pledge of machinery and equipment | ||||
BNDES | January 2021 | 2,803,533 | 2,803,533 | Mortgage of plants, land and property, pledge of machinery and equipment | ||||
FUNDES | May 2020 | 225,750 | 225,750 | Mortgage of plants, land and property, pledge of machinery and equipment | ||||
FINEP | January 2022 | 105,731 | 105,731 | Bank surety | ||||
FINAME | February 2022 | 3,460 | 3,460 | Pledge of equipment | ||||
Total | 3,431,831 | 3,431,831 |
37
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
16. Taxes payable
Parent company | Consolidated | |||||||
Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | |||||
Parent Company and subsidiaries in Brazil | ||||||||
IPI | 65,651 | 55,609 | 88,621 | 71,440 | ||||
PIS and COFINS | 7,128 | 5,764 | ||||||
Income tax and social contribution | 26,501 | 16,983 | 125,116 | 54,987 | ||||
ICMS | 27,245 | 16,274 | 82,378 | 72,435 | ||||
Federal tax payment program - Law 11,941/09 | 1,134,502 | 1,168,413 | 1,202,264 | 1,237,156 | ||||
Other | 45,478 | 47,119 | 47,168 | 59,630 | ||||
Foreign subsidiaries | ||||||||
Value-added tax | 2,538 | |||||||
Income tax | 2,132 | |||||||
Other | 84 | 1,460 | ||||||
Total | 1,299,377 | 1,304,398 | 1,552,759 | 1,507,542 | ||||
Current liabilities | 277,679 | 245,173 | 425,640 | 342,789 | ||||
Non-current liabilities | 1,021,698 | 1,059,225 | 1,127,119 | 1,164,753 | ||||
Total | 1,299,377 | 1,304,398 | 1,552,759 | 1,507,542 |
The information related to taxes payable was presented in the Company’s 2012 annual financial statements, in Note 21.
38
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
17. Income tax (“IR”) and social contribution (“CSL”)
(a) Reconciliation of the effects of income tax and social contribution on profit or loss
Parent company | Consolidated | |||||||
Jun/2013 | Jun/2012 | Jun/2013 | Jun/2012 | |||||
Income before IR and CSL and after discontinued operations | 165,054 | (1,447,474) | 203,776 | (1,494,395) | ||||
IR and CSL at the rate of 34% | (56,118) | 492,141 | (69,284) | 508,094 | ||||
Permanent adjustments to the IR and CSL calculation basis | ||||||||
IR and CSL on equity in results of investees | 14,974 | 93,956 | (1,086) | 240 | ||||
Tax incentives (Sudene and PAT) |
|
| 609 | 27 | ||||
Other permanent adjustments | (31,224) | (15,482) | (35,436) | 105,054 | ||||
Effect of IR and CSL on results of operations | (72,368) | 570,615 | (105,197) | 613,415 | ||||
Breakdown of IR and CSL: | ||||||||
Current IR and CSL / continued operations |
|
| (78,789) | (5,222) | ||||
Current IR (credit) - foreign subsidiaries / continued operations | 5,847 | |||||||
Current IR and CSL / discontinued operations |
|
|
| (8,519) | ||||
Current IR and CSL |
|
| (78,789) | (7,894) | ||||
Deferred IR and CSL / continued operations | (72,368) | 570,615 | (26,408) | 622,784 | ||||
Deferred IR and CSL / discontinued operations |
|
|
| (1,475) | ||||
Deferred IR and CSL | (72,368) | 570,615 | (26,408) | 621,309 | ||||
Total IR and CSL on income statement | (72,368) | 570,615 | (105,197) | 613,415 |
39
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Breakdown of deferred income tax and social contribution
Parent company | Consolidated | |||||||||
Deferred tax - assets | Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | ||||||
Tax losses (IR) and negative base (CSL) | 497,876 | 444,332 | 1,194,433 | 1,099,345 | ||||||
Goodwill amortized | 15,927 | 28,126 | 19,018 | 31,432 | ||||||
Exchange variations | 586,978 | 205,725 | 597,321 | 215,545 | ||||||
Temporary adjustments | 327,836 | 277,549 | 487,461 | 362,198 | ||||||
Business combination | 89,769 | 89,770 | 229,548 | 243,517 | ||||||
Pension plan | 59,296 | 49,912 | 59,296 | 49,912 | ||||||
Deferred charges - write-off | 2,598 | 5,197 | 49,014 | 60,060 | ||||||
Total assets | 1,580,280 | 1,100,611 | 2,636,091 | 2,062,009 | ||||||
Parent company | Consolidated | |||||||||
Deferred tax - liabilities | Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | ||||||
Amortization of goodwill based on future profitability | 527,443 | 510,308 | 615,042 | 586,857 | ||||||
Tax depreciation | 245,301 | 208,849 | 508,509 | 391,224 | ||||||
Exchange variations |
|
| 1,529 |
| ||||||
Temporary differences | 7,716 | 8,014 | 325,753 | 327,500 | ||||||
Business combination | 84,651 | 85,746 | 605,043 | 624,817 | ||||||
Write-off negative goodwill of incorporated subsidiaries | 1,484 | 1,781 | 1,484 | 1,781 | ||||||
Additional indexation PP&E | 147,174 | 154,188 | 147,174 | 154,189 | ||||||
Other | 38,026 | 46,857 | 43,522 | 52,254 | ||||||
Total liabilities | 1,051,795 | 1,015,743 | 2,248,056 | 2,138,622 |
(c) Realization of deferred income tax and social contribution
In the period ended June 30, 2013, there were no material events or circumstances that indicate any compromise of the realization of these deferred taxes.
The information related to income tax and social contribution was presented in the 2012 annual financial statements of the Company, in Note 22.
40
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
18. Sundry provisions
Consolidated | ||||
Jun/2013 | Dec/2012 | |||
Provision for customers bonus | 28,652 | 40,666 | ||
Provision for recovery of environmental damages | 45,914 | 32,944 | ||
Judicial and administrative provisions | 289,314 | 333,218 | ||
Other | 9,579 | 8,847 | ||
Total | 373,459 | 415,675 | ||
Current liabilities | 48,634 | 52,264 | ||
Non-current liabilities | 324,825 | 363,411 | ||
Total | 373,459 | 415,675 |
The composition of provisions for judicial and administrative suits is as follows:
Consolidated | ||||
Jun/2013 | Dec/2012 | |||
Labor claims | 78,676 | 75,697 | ||
Tax claims | ||||
Income tax and social contribution | 30,980 | 29,980 | ||
PIS and COFINS | 34,085 | 32,929 | ||
ICMS - interstate purchases | 82,485 | 79,688 | ||
ICMS - other | (i) | 10,935 | 56,974 | |
Other | 44,143 | 50,744 | ||
Corporate claims and other | 8,010 | 7,206 | ||
289,314 | 333,218 |
(i) Settlement of the contingency of Quattor booked upon the acquisition of this subsidiary in the amount of de R$ 47,747 (Note 12(b.)).
This table and the information on provisions were presented in the 2012 annual financial statements of the Company, in Note 23.
19. Advances from customers – consolidated current liabilities
The main change in this item is related to advances made by clients abroad for the purchase of products in 2013.
The information related to advances from customers was presented in the 2012 annual financial statements of the Company, in Note 26.
41
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
20. Defined-benefit plans
The amounts recognized for defined benefit pension plans are as follows:
Consolidated | ||||
Jun/2013 | Dec/2012 | |||
Petros Copesul | 174,415 | 147,175 | ||
Novamont Braskem America | (i) | 10,995 | 10,381 | |
Braskem Alemanha | (i) | 28,792 | 26,221 | |
214,202 | 183,777 | |||
Current liabilities | 174,415 | 147,175 | ||
Non-current liabilities | 39,787 | 36,602 | ||
Total | 214,202 | 183,777 |
(i) With the adoption of CPC 33 (R1) and IAS 19, the actuarial losses previously unrecognized in these two plans in the amount of R$18,204 (R$11,816, net of income tax) were recognized under "other comprehensive income (loss)" on December 31, 2012.For comparison purposes, the information for December 31, 2011 was not restated, since the amounts are immaterial.
21. Other accounts payable – consolidated
The main variation was the addition to amounts payable to the non-controlling shareholder of Braskem Idesa of R$231,757, due in 2013, arising from loans for the Ethylene XXI Project, which will be reimbursed upon disbursement of funds from the associated Project Finance structure (Note 32).
The information related to other accounts payable was presented in the 2012 annual financial statements of the Company, in Note 27.
22. Contingencies
The Company has contingent liabilities related to lawsuits and administrative proceedings arising from the normal course of its business. These contingencies are of a labor and social security, tax, civil and corporate nature and involve risks of losses that are classified by the Company’s management as possible. A provision for the lawsuits for which the risk of loss is classified as probable is recognized and is presented in Note 18 of this Quarterly Information.
The balance of contingencies not booked at June 30, 2013:
Consolidated | ||||
Jun/2013 | Dec/2012 | |||
Tax claims | 2,862,456 | 2,967,799 | ||
Other lawsuits | 336,292 | 411,324 | ||
Total | 3,198,748 | 3,379,123 |
The description of the main contingent liabilities of the Company was presented in the 2012 annual financial statements, in Note 28.
42
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
23. Financial instruments
The information related to financial instruments was presented in the 2012 financial statements of the Company, in Note 20.
23.1. Non-derivative financial instruments – consolidated – measured at fair value
Fair value | Book value | Fair value | ||||||||||||
Note | Classification by category | hierarchy | Jun/2013 | Dec/2012 | Jun/2013 | Dec/2012 | ||||||||
Cash and cash equivalents | 4 | |||||||||||||
Cash and banks | Loans and receivables | 354,795 | 398,142 | 354,795 | 398,142 | |||||||||
Financial investments in Brazil | Held-for-trading | Level 2 | 488,112 | 393,348 | 488,112 | 393,348 | ||||||||
Financial investments in Brazil | Loans and receivables | 1,477,212 | 899,816 | 1,477,212 | 899,816 | |||||||||
Financial investments abroad | Held-for-trading | Level 2 | 1,080,230 | 1,596,316 | 1,080,230 | 1,596,316 | ||||||||
3,400,349 | 3,287,622 | 3,400,349 | 3,287,622 | |||||||||||
|
| |||||||||||||
Financial investments | 5 |
|
| |||||||||||
FIM Sol investments | Held-for-trading | Level 2 | 38,027 | 50,803 | 38,027 | 50,803 | ||||||||
Investments in foreign currency | Held-for-trading | Level 2 | 4,376 | 5,256 | 4,376 | 5,256 | ||||||||
Investments in foreign currency | Held-to-maturity | 11,415 | 15,731 | 11,415 | 15,731 | |||||||||
Shares | Held-for-trading | Level 1 | 1,679 | 3,023 | 1,679 | 3,023 | ||||||||
FIM Sol investments | Loans and receivables |
| 77,469 |
| 77,469 | |||||||||
Investments in national currency | Loans and receivables |
| 513 |
| 513 | |||||||||
Quotas of receivables investment fund | Held-to-maturity | 38,756 | 52,559 | 38,756 | 52,559 | |||||||||
Restricted deposits | Held-to-maturity |
| 1,281 |
| 1,281 | |||||||||
94,253 | 206,635 | 94,253 | 206,635 | |||||||||||
|
| |||||||||||||
Trade accounts receivable | 6 | Loans and receivables | 2,446,062 | 2,364,222 | 2,446,062 | 2,364,222 | ||||||||
|
| |||||||||||||
Related parties credits | 8 | Loans and receivables | 151,660 | 141,539 | 151,660 | 141,539 | ||||||||
|
| |||||||||||||
Other receivables |
|
| ||||||||||||
Disposal of shareholdings | Loans and receivables | 489,100 | 652,100 | 489,100 | 652,100 | |||||||||
|
| |||||||||||||
Trade payables | Other financial liabilities | 9,843,702 | 8,897,597 | 9,843,702 | 8,897,597 | |||||||||
|
| |||||||||||||
Borrowings | 15 |
|
| |||||||||||
Foreign currency | Other financial liabilities | 13,595,787 | 12,166,538 | 13,765,890 | 12,920,332 | |||||||||
Local currency | Other financial liabilities | 5,442,031 | 5,404,617 | 5,442,031 | 5,405,688 | |||||||||
19,037,818 | 17,571,155 | 19,207,921 | 18,326,020 | |||||||||||
|
| |||||||||||||
Other payables | 21 |
|
| |||||||||||
Creditors for the acquisitions of shares | Other financial liabilities | 265,624 | 256,030 | 265,624 | 256,030 | |||||||||
Accounts payable to non-controlling | Other financial liabilities | 621,474 | 260,649 | 621,474 | 260,649 | |||||||||
887,098 | 516,679 | 887,098 | 516,679 |
Fair value hierarchy
Level 1 – fair value obtained through prices quoted (without adjustments) in active markets for identical assets or liabilities, such as the stock exchange.
Level 2 – fair value obtained from discounted cash flow models, when the instrument is a forward purchase or sale or a swap contract, or valuation models of option contracts, such as the Black-Scholes model, when the derivative has the characteristics of an option.
43
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
23.2. Derivative and non-derivative financial instruments
Operation characteristics | ||||||||||||||||
Fair value | Principal exposure | Change in | Financial | |||||||||||||
Identification | Note | hierarchy | Derivatives | Dec/2012 | fair value | settlement | Jun/2013 | |||||||||
Non-hedge accounting transactions | ||||||||||||||||
Non-deliverable forward ("NDF") - ethanol | Level 2 | Real |
| Dollar | 1,791 | 52 | (1,843) |
| ||||||||
Commodity swap - Naphtha | 23.2.1 (a.i) | Level 2 | Fixed price |
| Variable price |
| 111 |
| 111 | |||||||
Contract for the future purchase - ethanol | Level 1 | Fixed price |
| Variable price | 2 |
| (2) |
| ||||||||
Exchange swap | Level 2 | Dollar |
| CDI | 4,968 | (1,688) | (3,280) |
| ||||||||
Interest rate swaps | 23.2.1 (a.ii) | Level 2 | Fixed rate | CDI |
| 14,180 | 1,770 | 15,950 | ||||||||
Interest rate swaps | 23.2.1 (a.iii) | Level 2 | Libor | Dollar |
| (93,880) |
| (93,880) | ||||||||
Deliverable Forward | 23.2.1 (a.iv) | Level 2 | Mexican peso | Dollar |
| 79,292 | 1,868 | 81,160 | ||||||||
Deliverable Forward | 23.2.1 (a.v) | Level 2 | Euro | Dollar |
| 1,038 | (1,723) | (685) | ||||||||
6,761 | (895) | (3,210) | 2,656 | |||||||||||||
Hedge accounting transactions | ||||||||||||||||
Swap de câmbio | 23.2.1 (b.i) | Level 2 | CDI | Dollar | 286,617 | 28,576 | 4,668 | 319,861 | ||||||||
286,617 | 28,576 | 4,668 | 319,861 | |||||||||||||
Current assets (other receivables) |
| (115,494) | ||||||||||||||
Current liabilities (derivatives operations) | 293,378 | 97,221 | ||||||||||||||
Non current liabilities (derivatives operations) | 340,790 | |||||||||||||||
293,378 | 322,517 |
23.2.1. Existing operations on June 30, 2013
(a) Non-hedge accounting transactions
The regular changes in the fair value of swaps are recorded as financial income or expenses in the same period in which they occur. Braskem recognized a financial income of R$895 related to the change in the fair value of these swaps for the period ended June 30, 2013.
(a.i) Commodity swap - Naphtha
Identification |
| Nominal value |
| Fixed price - R$/Ton (hedge) |
| Maturity |
|
|
| Fair value |
| US$ thousands |
|
|
| Jun/2013 |
| Dec/2012 | |||
Commodity swap - naphtha | 918 | 830.000 | July-2013 |
| 7 | |||||
Commodity swap - naphtha | 269 | 830.000 | August-2013 |
| 4 | |||||
Commodity swap - naphtha | 477 | 830.000 | February-2014 |
| 22 | |||||
Commodity swap - naphtha | 477 | 830.000 | March-2014 |
| 25 | |||||
Commodity swap - naphtha | 477 | 830.000 | April-2014 |
| 28 | |||||
Commodity swap - naphtha | 425 | 830.000 | May-2014 |
| 25 | |||||
Total |
| 3,044 |
|
|
|
|
| 111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities (derivatives operations) |
|
|
|
|
|
|
| 111 |
|
|
Total |
|
|
|
|
| 111 |
|
|
On June 30, 2013, Braskem Inc. held six futures contracts for the purchase of naphtha, at a nominal value of US$ 3,043 thousand. In these contracts, Braskem Inc. buys future naphtha at a fixed price in order to preserve its margins during an occasional resin sale operation at a fixed price to the final client.
44
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a.ii) Interest rate swap linked to NCE
Identification |
|
| Interest rate |
| Maturity |
|
|
| Fair value | |
Nominal value |
| (hedge) |
|
| Jun/2013 |
| Dec/2012 | |||
Swap NCE I | 100,000 | 90.65% CDI | February-2016 | 3,114 | ||||||
Swap NCE II | 50,000 | 88.20% CDI | February-2016 | 1,804 | ||||||
Swap NCE III | 100,000 | 92.64% CDI | February-2016 | 3,569 | ||||||
Swap NCE IV | 50,000 | 92.70% CDI | February-2016 | 1,604 | ||||||
Swap NCE V | 100,000 | 91.92% CDI | February-2016 | 3,430 | ||||||
Swap NCE VI | 50,000 | 92.25% CDI | March-2016 | 1,837 | ||||||
Swap NCE VII | 17,500 | 91.10% CDI | March-2016 | 592 | ||||||
Total | 467,500 | 15,950 |
| |||||||
Current liabilities (derivatives operations) |
|
|
|
|
|
|
| 15,950 |
|
|
Total |
|
|
|
|
| 15,950 |
|
|
The objective of swap transactions is to reduce cash flow volatility by causing the fluctuation in interest on debt to match the return on cash in Brazilian real on the financing facilities mentioned in Note 15.
(a.iii) Interest rate swap linked to Libor
Identification | Nominal value | Interest rate | Maturity |
|
| Fair value | ||||
US$ thousands | (hedge) | Jun/2013 |
| Dec/2012 | ||||||
Swap Libor I | 299,996 | 1.9825% | May-2025 | (21,451) | ||||||
Swap Libor II | 299,996 | 1.9825% | May-2025 | (21,451) | ||||||
Swap Libor III | 299,996 | 1.9825% | May-2025 | (21,451) | ||||||
Swap Libor IV | 129,976 | 1.9825% | May-2025 | (9,294) | ||||||
Swap Libor V | 132,996 | 1.9825% | May-2025 | (9,509) | ||||||
Swap Libor VI | 149,932 | 1.9825% | May-2025 | (10,724) | ||||||
Total | 1,312,892 | (93,880) |
| |||||||
Current assets (other receivables) | (93,880) | |||||||||
Total | (93,880) |
|
On June 30, 2013, Braskem Idesa held six interest rate swap contracts for a nominal value of US$ 1,313 thousand, contracted on the future disbursements of the Project Finance contracted in US dollar at floating rates (based on Libor). In these swaps, Braskem Idesa receives floating rates (Libor) and pays fixed rates periodically, coinciding with the Project Finance cash flows. The objective of these swaps is to offset the changes in the future financial expenses from debt caused by changes in the Libor rate. The term, amount, settlement dates and floating interest rates coincide with the terms of the Project Finance.
45
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a.iv) Currency futures contract– Mexican Peso
Identification | Nominal value | Foreign exchange | Maturity |
|
| Fair value | ||||
US$ thousands | (hedge) | Jun/2013 |
| Dec/2012 | ||||||
Deliverable Forward | 18,911 | 12.3039 | July-2013 | 2,338 | ||||||
Deliverable Forward | 22,729 | 12.3330 | July-2013 | 2,822 | ||||||
Deliverable Forward | 27,260 | 12.3649 | September-2013 | 3,410 | ||||||
Deliverable Forward | 27,612 | 12.3905 | September-2013 | 3,456 | ||||||
Deliverable Forward | 30,811 | 12.4196 | October-2013 | 3,867 | ||||||
Deliverable Forward | 31,517 | 12.4493 | December-2013 | 3,972 | ||||||
Deliverable Forward | 32,291 | 12.4763 | December-2013 | 4,085 | ||||||
Deliverable Forward | 35,315 | 12.5052 | January-2014 | 4,486 | ||||||
Deliverable Forward | 35,232 | 12.5343 | February-2014 | 4,475 | ||||||
Deliverable Forward | 37,938 | 12.5662 | March-2014 | 4,819 | ||||||
Deliverable Forward | 36,920 | 12.6458 | April-2014 | 4,389 | ||||||
Deliverable Forward | 32,410 | 12.6792 | June-2014 | 3,853 | ||||||
Deliverable Forward | 36,844 | 12.7075 | June-2014 | 4,380 | ||||||
Deliverable Forward | 36,839 | 12.7388 | July-2014 | 4,380 | ||||||
Deliverable Forward | 33,627 | 12.7722 | September-2014 | 3,998 | ||||||
Deliverable Forward | 30,750 | 12.8005 | September-2014 | 3,655 | ||||||
Deliverable Forward | 30,079 | 12.8318 | October-2014 | 3,575 | ||||||
Deliverable Forward | 27,843 | 12.8631 | December-2014 | 3,309 | ||||||
Deliverable Forward | 24,091 | 12.8933 | December-2014 | 2,863 | ||||||
Deliverable Forward | 22,522 | 12.9276 | February-2015 | 2,676 | ||||||
Deliverable Forward | 18,209 | 12.9548 | March-2015 | 2,164 | ||||||
Deliverable Forward | 15,394 | 12.9841 | March-2015 | 1,829 | ||||||
Deliverable Forward | 9,703 | 13.0148 | April-2015 | 1,152 | ||||||
Deliverable Forward | 5,299 | 13.0497 | June-2015 | 627 | ||||||
Deliverable Forward | 3,191 | 13.0812 | June-2015 | 377 | ||||||
Deliverable Forward | 1,769 | 13.1149 | July-2015 | 208 | ||||||
Deliverable Forward | 1,840 | 13.1486 | August-2015 | 216 | ||||||
Deliverable Forward | 17,117 | 13.0907 | July-2013 | (74) | ||||||
Deliverable Forward | 6,901 | 13.1269 | September-2013 | (26) | ||||||
Deliverable Forward | 6,978 | 13.1553 | September-2013 | (27) | ||||||
Deliverable Forward | 5,448 | 13.1838 | October-2013 | (17) | ||||||
Deliverable Forward | 10,593 | 13.2190 | December-2013 | (34) | ||||||
Deliverable Forward | 8,654 | 13.2487 | December-2013 | (25) | ||||||
Deliverable Forward | 5,706 | 13.2791 | January-2014 | (13) | ||||||
Deliverable Forward | 1,267 | 13.3375 | March-2014 | (1) | ||||||
Deliverable Forward | 5,471 | 13.3669 | April-2014 | (4) | ||||||
Total | 735,079 | 81,160 |
| |||||||
Current liabilities (derivatives operations) | 81,160 | |||||||||
Total | 81,160 |
|
Braskem Idesa contracted currency purchase transactions through futures contracts to hedge its cash flow, swapping its exposure in Mexican peso to U.S. dollar, since the subsidiary has cash in dollar and future expenses in Mexican peso.
46
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(a.v) Currency futures contract - Euro
Identification | Nominal value | Foreign exchange | Maturity |
|
| Fair value | ||||
US$ thousands | (hedge) | Jun/2013 |
| Dec/2012 | ||||||
Deliverable Forward | 9,763 | 1.3007 | May-2013 | (107) | ||||||
Deliverable Forward | 9,771 | 1.3017 | July-2013 | (96) | ||||||
Deliverable Forward | 9,780 | 1.3028 | September-2013 | (79) | ||||||
Deliverable Forward | 8,485 | 1.3041 | December-2013 | (50) | ||||||
Deliverable Forward | 7,839 | 1.3053 | January-2014 | (31) | ||||||
Deliverable Forward | 22,266 | 1.3066 | March-2014 | (165) | ||||||
Deliverable Forward | 15,819 | 1.3035 | July-2013 | (96) | ||||||
Deliverable Forward | 10,444 | 1.3042 | September-2013 | (49) | ||||||
Deliverable Forward | 6,096 | 1.3051 | December-2013 | (20) | ||||||
Deliverable Forward | 3,287 | 1.3059 | January-2014 | (5) | ||||||
Deliverable Forward | 6,501 | 1.3068 | March-2014 | 1 | ||||||
Deliverable Forward | 6,555 | 1.3079 | June-2014 | 12 | ||||||
Total | 116,606 | (685) |
| |||||||
Current assets (other receivables) | (685) | |||||||||
Total | (685) |
|
Braskem Idesa contracted currency purchase transactions through futures contracts to hedge its cash flow, swapping its exposure in Euro to U.S. dollar, since the subsidiary has cash in dollar and future expenses in Euro.
(b) Hedge accounting transactions
(b.i) Swaps related to export credit notes (NCE)
Prior the designation of these swaps as hedge accounting, on May 1, 2013, the Company recognized financial income of R$ 43,651 in the profit or loss. After this designation, a financial expense of R$ 72,227 was recognized in shareholders’ equity related to changes in the fair value of these swaps as from such designation until June 30, 2013.
Identification | Interest rate | Maturity | Fair value | |||||||
Nominal value | (hedge) | Jun/2013 | Dec/2012 | |||||||
Swap NCE I | 200,000 | 5.44% | August 2019 | 90,410 | 82,812 | |||||
Swap NCE II | 100,000 | 5.40% | August 2019 | 42,745 | 39,008 | |||||
Swap NCE III | 100,000 | 5.37% | August 2019 | 41,027 | 37,333 | |||||
Swap NCE IV | 100,000 | 5.50% | April 2019 | 33,495 | 29,904 | |||||
Swap NCE V | 100,000 | 5.50% | April 2019 | 33,432 | 29,250 | |||||
Swap NCE VI | 150,000 | 5.43% | April 2019 | 44,671 | 38,585 | |||||
Swap NCE VII | 100,000 | 4.93% | April 2019 | 34,081 | 29,725 | |||||
Total | 850,000 | 319,861 | 286,617 | |||||||
| ||||||||||
Current assets (other receivables) | (20,929) | |||||||||
Current liabilities (derivatives operations) |
| 286,617 | ||||||||
Non Current liabilities (derivatives operations) | 340,790 | |||||||||
Total | 319,861 | 286,617 |
The purpose of these swap operations is to offset the interest rate risk arising from the borrowings mentioned in Note 15.
47
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b.ii) Non-derivative liabilities designated for export hedge accounting
On May 1, 2013, Braskem S.A. designated non-derivative financial instruments liabilities, denominated in U.S. Dollars as hedging instrument for the flow of its highly probable future exports. Thus, the impact of exchange rates on future cash flows in dollars derived from these exports will be offset by the foreign exchange variation on the designated liabilities, partly eliminating the volatility of the statements of operations.
On June 30, 2013, the following non-derivative liabilities of Braskem S.A. were designated as hedge for the flow of its highly probable future exports:
Financial liabilities - Parent company | ||||||||||
Nominal value | Balance at | Balance at | ||||||||
Identification | Maturity | Hedge | US$ thousands | Dec/2012 | Jun/2013 | |||||
Operations designated for hedge accounting | ||||||||||
Trade payables related parties |
| 2016 |
| Dollar |
| 839,447 |
|
|
| 1,859,878 |
Accounts payable - related parties |
| 2017 |
| Dollar |
| 83,000 |
|
|
| 183,895 |
Trade payables related parties |
| 2018 |
| Dollar |
| 365,846 |
|
|
| 810,569 |
Export prepayments - related parties |
| 2018 |
| Dollar |
| 150,000 |
|
|
| 332,340 |
Trade payables |
| 2019 |
| Dollar |
| 230,839 |
|
|
| 511,446 |
Trade payables related parties |
| 2019 |
| Dollar |
| 353,552 |
|
|
| 783,330 |
Credit note export |
| 2019 |
| Dollar |
| 25,000 |
|
|
| 55,390 |
Export prepayments |
| 2020 |
| Dollar |
| 260,000 |
|
|
| 576,056 |
Export prepayments - related parties |
| 2020 |
| Dollar |
| 30,000 |
|
|
| 66,468 |
Trade payables |
| 2020 |
| Dollar |
| 119,342 |
|
|
| 264,413 |
Bond |
| 2021 |
| Dollar |
| 65,143 |
|
|
| 144,331 |
Accounts payable - related parties |
| 2021 |
| Dollar |
| 50,000 |
|
|
| 110,780 |
Bond |
| 2022 |
| Dollar |
| 150,000 |
|
|
| 332,340 |
Export prepayments - related parties |
| 2022 |
| Dollar |
| 468,837 |
|
|
| 1,038,755 |
Accounts payable - related parties |
| 2022 |
| Dollar |
| 294,000 |
|
|
| 651,386 |
Export prepayments |
| 2023 |
| Dollar |
| 100,000 |
|
|
| 221,560 |
Export prepayments - related parties |
| 2023 |
| Dollar |
| 330,000 |
|
|
| 731,148 |
Accounts payable - related parties |
| 2024 |
| Dollar |
| 336,000 |
|
|
| 744,442 |
Export prepayments |
| 2024 |
| Dollar |
| 380,000 |
|
|
| 841,928 |
Accounts payable - related parties |
| 2022 |
| Dollar |
| 216,000 |
|
|
| 478,570 |
Credit note export |
| 2022 |
| Dollar |
| 353,000 |
|
|
| 782,107 |
Export prepayments - related parties |
| 2022 |
| Dollar |
| 150,000 |
|
|
| 332,340 |
Accounts payable - related parties |
| 2023 |
| Dollar |
| 653,972 |
|
|
| 1,448,939 |
Export prepayments - related parties |
| 2023 |
| Dollar |
| 64,400 |
|
|
| 142,685 |
Accounts payable - related parties |
| 2024 |
| Dollar |
| 113,854 |
|
|
| 252,255 |
Export prepayments - related parties |
| 2024 |
| Dollar |
| 575,000 |
|
|
| 1,273,970 |
|
|
|
| 6,757,231 |
|
|
| 14,971,321 | ||
|
|
|
| |||||||
|
|
|
| |||||||
|
|
| Nominal value | Balance at | Balance at | |||||
Related parties |
|
|
|
| US$ thousands | Dec/2012 | Jun/2013 | |||
Braskem Holanda |
|
|
|
| 1,283,826 | 2,844,444 | ||||
Braskem America |
|
|
|
| 283,000 | 627,015 | ||||
Braskem Inc |
|
|
|
| 3,327,082 | 7,371,483 | ||||
Braskem GmbH |
|
|
|
| 180,000 | 398,808 | ||||
|
|
|
| 5,073,908 | 11,241,750 |
48
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
The Company considers that the flow covered is highly probable, based, among others, on the following facts:
· Historically, annual export volume is three to four times higher than the annual amount covered. In the last five years, Braskem S.A. presented an average exportation of US$ 2,4 billion that support hedged foreign sales; and
· The flow covered varies between 15% and 30% of the export flows planned by the Company.
The Company designated export flows that are longer than the financial liabilities that hedged them. Thus the hedge objects have their terms linked to these hedging instruments. However, for effectiveness test purposes, the export flows will be considered only until the maturity date of the linked debts instruments. Additionally, to ensure continuity of the relation and the hedge strategy proposed, the Company plans to refinance and/or replace these hedge instruments according to their maturity, in accordance with CPC 38 and IAS 39.
In order to maintain consistency between the parent company’s results and the consolidated results, Braskem selected hedge instruments with subsidiaries abroad observing the guarantees on those companies whose counterparty is external to Braskem’s. As such, non-derivative financial liabilities in which the foreign subsidiary acted as an intermediary in the operations were selected, maintaining the essence of the transactions.
On June 30, the following non-derivative financial liabilities were designated as guarantee for the hedge, considering the scope of the consolidated balance sheet:
49
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
Financial liabilities - Consolidated | ||||||||||
Nominal value | Balance at | Balance at | ||||||||
Identification | Maturity | Hedge | US$ thousands | Dec/2012 | Jun/2013 | |||||
Operations designated for hedge accounting | ||||||||||
Bond | 2016 |
| Dollar |
| 78,893 |
|
|
| 174,794 | |
Foreign currency borrowings | 2016 |
| Dollar |
| 90,000 |
|
|
| 199,404 | |
Trade payables | 2016 |
| Dollar |
| 670,554 |
|
|
| 1,485,680 | |
Bond | 2017 |
| Dollar |
| 213,220 |
|
|
| 472,410 | |
Trade payables | 2017 |
| Dollar |
| 616,465 |
|
|
| 1,365,840 | |
Bond | 2018 |
| Dollar |
| 340,455 |
|
|
| 754,312 | |
Trade payables | 2018 |
| Dollar |
| 447,439 |
|
|
| 991,345 | |
Bond | 2019 |
| Dollar |
| 327,483 |
|
|
| 725,572 | |
Foreign currency borrowings | 2019 |
| Dollar |
| 49,999 |
|
|
| 110,778 | |
Trade payables | 2019 |
| Dollar |
| 181,497 |
|
|
| 402,126 | |
Credit note export | 2019 |
| Dollar |
| 25,000 |
|
|
| 55,390 | |
Export prepayments | 2019 |
| Dollar |
| 150,000 |
|
|
| 332,340 | |
Bond | 2020 |
| Dollar |
| 460,001 |
|
|
| 1,019,178 | |
Foreign currency borrowings | 2020 |
| Dollar |
| 149,999 |
|
|
| 332,338 | |
Export prepayments | 2020 |
| Dollar |
| 114,000 |
|
|
| 252,578 | |
Bond | 2021 |
| Dollar |
| 480,001 |
|
|
| 1,063,490 | |
Foreign currency borrowings | 2021 |
| Dollar |
| 99,999 |
|
|
| 221,557 | |
Export prepayments | 2021 |
| Dollar |
| 136,001 |
|
|
| 301,323 | |
Bond | 2022 |
| Dollar |
| 184,369 |
|
|
| 408,487 | |
Foreign currency borrowings | 2022 |
| Dollar |
| 179,288 |
|
|
| 397,230 | |
Credit note export | 2022 |
| Dollar |
| 353,000 |
|
|
| 782,107 | |
Export prepayments | 2022 |
| Dollar |
| 2,344 |
|
|
| 5,193 | |
Bond | 2023 |
| Dollar |
| 698,372 |
|
|
| 1,547,312 | |
Export prepayments | 2023 |
| Dollar |
| 20,000 |
|
|
| 44,312 | |
Bond | 2024 |
| Dollar |
| 610,199 |
|
|
| 1,351,958 | |
Foreign currency borrowings | 2024 |
| Dollar |
| 70,999 |
|
|
| 157,306 | |
Export prepayments | 2024 |
| Dollar |
| 7,656 |
|
|
| 16,962 | |
| 6,757,231 |
| 14,971,321 |
The amounts of the operations designated for hedge accounting booked in shareholders' equity are shown below:
Balance at | Balance at | |||||||
Dec/2012 | Addition | Reversion | Jun/2013 | |||||
Hedge accounting of exportation |
|
| 1,445,372 |
|
|
| 1,445,372 | |
Income tax and social contribution on hedge accounting of exportation |
|
| (491,427) |
|
|
| (491,427) | |
|
|
|
|
| ||||
Fair value of cash flow hedges, net of taxes |
|
| 953,945 |
|
|
| 953,945 |
(c) Estimated maximum loss
The amount at risk of the derivatives held by Braskem on June 30, 2013, which is defined as the highest loss that could result in one month and in 95% of the cases under normal market conditions, was estimated by the Company at US$32,241 for the NCE swaps, and US$64,361 for fixed rate / CDI swaps.
50
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
23.3. Credit quality of financial assets
(a) Trade accounts receivable
Only a few of the Company's customers have risk ratings assigned by credit rating agencies. For this reason, the Company developed its own credit rating system for all accounts receivable from domestic customers and for part of the accounts receivable from foreign customers. The Company does not apply this rating to all of its foreign customers because most accounts receivable from them are covered by an insurance policy or letters of credit issued by banks. On June 30, 2013, the credit ratings were as follows:
|
| Percentage | ||
1 | Minimum risk |
|
| 15.25% |
2 | Low risk |
|
| 27.11% |
3 | Moderate risk |
|
| 25.65% |
4 | High risk |
|
| 30.56% |
5 | Very high risk | (i) |
| 1.43% |
(i) Most customers in this group are inactive and the respective accounts are in the process of collection actions in the courts. Customers in this group that are still active buy from Braskem and pay in advance.
Delinquency indicators for the periods ended:
| Domestic | Export (LTM) | |
June 30, 2013 | 0.30% | 0.45% | |
December 31, 2012 | 0.28% | 0.37% | |
December 31, 2011 | 0.18% | 0.43% |
LTM – last 12 months
(b) Other financial assets
In order to determine the credit ratings of counterparties in financial assets classified as cash and cash equivalents, held-for-trading, held-to-maturity and loans and receivables, the Company uses the following credit rating agencies: Standard & Poor’s, Moody’s and Fitch Ratings.
51
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
|
| Jun/2013 |
| Dec/2012 |
Financial assets with risk assessment |
|
|
|
|
AAA |
| 2,815,818 |
| 2,484,788 |
AA+ |
| 282,667 |
| 190,660 |
AA |
| 60,544 |
| 5 |
AA- |
|
|
| 449,555 |
A+ |
|
|
| 120,123 |
A |
| 289,444 |
| 19 |
A- |
| 1,131 |
| 80,231 |
|
| 3,449,604 |
| 3,325,381 |
Financial assets without risk assessment |
|
|
|
|
Quotas of investment funds in credit rights | (i) | 38,756 |
| 103,359 |
Sundry funds | (ii) | 4,376 |
| 60,356 |
Restricted deposits | (iii) |
|
| 1,281 |
Other financial assets with no risk assessment |
| 1,866 |
| 3,880 |
|
| 44,998 |
| 168,876 |
|
|
|
|
|
Total |
| 3,494,602 |
| 3,494,257 |
(i) Financial assets with no internal or external ratings and approved by the Management of the Company.
(ii) Investment funds with no assessment of internal or external risk, whose portfolio is composed of assets from major financial institutions and that comply with Braskem’s financial policy.
(iii) Risk-free financial assets
Braskem’s financial policy determines “A-” as the minimum rating for financial investments.
23.4. Sensitivity analysis
Financial instruments, including derivatives, may be subject to changes in their fair value as a result of the variation in commodity prices, foreign exchange rates, interest rates, shares and share indexes, price indexes and other variables. The sensitivity of the derivative and non-derivative financial instruments to these variables are presented below:
(a) Selection of risks
On June 30, 2013, the main risks that can affect the value of the Company’s financial instruments are:
· Brazilian real/U.S. dollar exchange rate;
· Mexican peso/U.S. dollar exchange rate;
· Euro/U.S. dollar exchange rate;
· LIBOR floating interest rate;
· CDI interest rate; and
· TJLP interest rate.
For the purposes of the risk sensitivity analysis, the Company presents the exposures to currencies as if they were independent, that is, without reflecting in the exposure to a foreign exchange rate the risks of the variation in other foreign exchange rates that could be directly influenced by it.
52
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Selection of scenarios
In accordance with CVM Instruction No. 475/08, the Company included three scenarios in the sensitivity analysis, with one that is probable and two that represent adverse effects to the Company. In the preparation of the adverse scenarios, only the impact of the variables on the financial instruments, including derivatives, and on the items covered by hedge transactions, was considered. The overall impacts on the Company’s operations, such as those arising from the revaluation of inventories and revenue and future costs, were not considered. Since the Company manages its exposure to foreign exchange rate risk on a net basis, adverse effects from depreciation in the Brazilian real in relation to the U.S. dollar can be offset by opposing effects on Braskem’s operating results.
(b.1) Probable scenario
TheMarket Readout published by the Central Bank of Brazil on June 28, 2013 was used to create the probable scenario for the U.S. dollar/Brazilian real exchange rate and the CDI interest rate, using the reference date of December 31, 2013. TheMarket Readout presents a consensus of market expectations based on a survey of the forecasts made by various financial and non-financial institutions.
TheMarket Readout does not publish forecasts for the interest rates LIBOR and TJLP. Therefore, the Company considered the expectations for the CDI interest rate for determining the probable scenario for those rates, given their correspondence. The probable scenario for the TJLP is an increase of 0.5% from the current rate of 5%, in line with the size of the government’s most recent decisions to increase or decrease the rate, and accompanying the forecast for the cumulative increase in the CDI rate by end-2013 of 1.25%.
(b.2) Possible and extreme adverse scenarios
For the Brazilian real/U.S. dollar and Mexican peso/U.S. dollar exchange rates, a positive change of 25% was considered for the possible adverse scenario and of 50% for the extreme scenario based on the exchange rate on June 30, 2013.
For the U.S. dollar/Euro exchange rate, a decrease of 25% was considered for the possible adverse scenario and of 50% for the extreme scenario based on the exchange rate on June 30, 2013.
For the Libor and CDI interest rates, a positive change of 25% was considered for the possible adverse scenario and of 50% for the extreme scenario based on the respective interest rate on June 30, 2013.
For the TJLP interest rate, an increase of 1% was considered for the possible adverse scenario and of 1.5% for the extreme scenario based on its rate on June 30, 2013, in accordance with the upward or downward adjustments made by the government in the rate, in this order of scale.
The sensitivity values in the table (c) below are the changes in the value of the financial instruments in each scenario, except for tables (d), (e), (f), (g) and (h) which show the changes in future cash flows.
53
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(c) Sensitivity to the Brazilian real/U.S. dollar exchange rate
The sensitivity of each financial instrument, including derivatives and items covered by them, to the variation in the Brazilian real/US dollar exchange rate is presented in the table below:
|
|
|
| Possible adverse |
| Extreme adverse |
Instrument |
| Probable |
| (25%) |
| (50%) |
Bonds and MTN |
| 69,896 |
| (2,481,769) |
| (4,963,538) |
BNDES |
| 3,582 |
| (127,184) |
| (254,369) |
Working capital / structured operations |
| 13,683 |
| (485,844) |
| (971,688) |
Raw material financing |
| 1,680 |
| (59,663) |
| (119,326) |
Export prepayments |
| 6,886 |
| (244,486) |
| (488,972) |
Financial investments abroad |
| (9,877) |
| 350,709 |
| 701,418 |
Swaps |
| 89,066 |
| (206,746) |
| (491,007) |
(d) Sensitivity to the U.S. dollar/Mexican peso exchange rate
The sensitivity of each financial instrument, including derivatives and items covered by them, to the variation in the U.S. dollar/Mexican peso exchange rate is presented in the table below:
|
|
|
| Possible adverse |
| Extreme adverse |
Instrument |
| Probable |
| (25%) |
| (50%) |
Deliverable Forward |
| 28,744 |
| (134,054) |
| (225,614) |
(e) Sensitivity to the U.S. dollar/Euro exchange rate
The sensitivity of each financial instrument, including derivatives and items covered by them, to the variation in the U.S. dollar/Euro exchange rate is presented in the table below:
|
|
|
| Possible adverse |
| Extreme adverse |
Instrument |
| Probable |
| (25%) |
| (50%) |
Deliverable Forward |
| (2,777) |
| (10,821) |
| (28,696) |
(f) Sensitivity of future cash flows to the LIBOR floating interest rate
The sensitivity of future interest income and expenses of each financial instrument, including derivatives and items covered by them, is presented in the table below. The figures represent the impact on financial income (expenses), taking into consideration the average term of the respective instrument.
|
|
|
| Possible adverse |
| Extreme adverse |
Instrument |
| Probable |
| (25%) |
| (50%) |
Working capital / structured operations |
| (588) |
| (1,632) |
| (3,264) |
Export prepayments |
| (525) |
| (1,460) |
| (2,919) |
Swaps |
| 31,563 |
| (87,674) |
| (175,349) |
54
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(g) Sensitivity of future cash flows to the CDI interest rate
The sensitivity of each financial instrument, including derivatives and items covered by them, to the variation in CDI interest rate is presented in the table below:
|
|
|
| Possible adverse |
| Extreme adverse |
Instrument |
| Probable |
| (25%) |
| (50%) |
Export credit notes |
| (2,706) |
| (4,339) |
| (8,726) |
Agricultural credit note |
| (7,490) |
| (12,007) |
| (24,136) |
Financial investments in local currency |
| 8,999 |
| 14,425 |
| 28,995 |
(h) Sensitivity of future cash flows to the TJLP interest rate
The sensitivity of each financial instrument, including derivatives and items covered by them, to the variation in TJLP interest rate is presented in the table below:
|
| Probable |
| Possible adverse |
| Extreme adverse |
Instrument |
| 5.5% |
| 6.0% |
| 6.5% |
BNDES |
| (5,236) |
| (10,434) |
| (15,595) |
FINEP |
| (41) |
| (82) |
| (122) |
Other governmental agents |
| (8) |
| (17) |
| (3,189) |
24. Shareholders’ Equity
The information related to the Company’s shareholders’ equity was presented in its 2012 annual financial statements, in Note 29.
(a) Capital
On June 30, 2013, the Company's subscribed and paid up capital stock amounted to R$8,043,222 and comprised 797,265,348 shares with no par value divided into 451,668,652 common shares, 345,002,878 class A preferred shares, and 593,818 class B preferred shares, distributed as follows:
Preferred | Preferred | ||||||||||||||||
Common | shares | shares | |||||||||||||||
shares | % | class A | % | class B | % | Total | % | ||||||||||
OSP e Odebrecht | 226,334,623 | 50.11% | 79,182,498 | 22.95% |
| 305,517,121 | 38.32% | ||||||||||
Petrobras | 212,426,951 | 47.03% | 75,792,589 | 21.97% |
| 288,219,540 | 36.15% | ||||||||||
BNDESPAR |
|
|
| 44,069,052 | 12.77% |
| 44,069,052 | 5.53% | |||||||||
ADR | (i) |
|
|
| 34,199,944 | 9.91% |
| 34,199,944 | 4.29% | ||||||||
Other | 12,907,078 | 2.86% | 110,604,037 | 32.06% | 593,818 | 100.00% | 124,104,933 | 15.57% | |||||||||
Total | 451,668,652 | 100.00% | 343,848,120 | 99.67% | 593,818 | 100.00% | 796,110,590 | 99.86% | |||||||||
Braskem shares owned | (ii) | 1,154,758 | 0.33% | 1,154,758 | 0.14% | ||||||||||||
Total | 451,668,652 | 100.00% | 345,002,878 | 100.00% | 593,818 | 100.00% | 797,265,348 | 100.00% | |||||||||
(i) American Depository Receipt, negotiated in the New York stock market (USA). | |||||||||||||||||
(ii) This shares are treated as "treasury shares" in consolidated Equity. |
55
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(b) Ongoing share repurchase programs
(b.1) 4th Share repurchase program
On August 13, 2012, Braskem’s Board of Directors approved a program for the repurchase of shares effective for the period between August 29, 2012 and August 28, 2013, through which the Company may acquire up to 13,376,161 class A preferred shares at market price. The shares may be acquired by the Company or by financial institutions hired for such purpose. Upon the expiration of the program, Braskem will have to acquire from financial institutions, at market value, the shares acquired by the latter. The private transaction was approved by the CVM. No shares were purchased under this program in the six-month period.
(c) Other comprehensive income - shareholders' equity
Parent company and consolidated | ||||||||||||||||
Additional | Deemed | Defined | Foreign | |||||||||||||
indexation of | cost of | benefit | Fair value | currency | Gain (loss) | |||||||||||
PP&E | jointly-controlled | plan actuarial | of cash flow | translation | on interest | |||||||||||
price-level | subsidiary | loss | derivatives | adjustment | in subsidiary | |||||||||||
Note | (i) | (i) | (ii) | (iii) | (iv) | (v) | Total | |||||||||
As of December 31, 2011 | 326,541 | 21,159 | (10,716) | (24,504) | 3,106 | 315,586 | ||||||||||
Additional indexation | ||||||||||||||||
Realization by depreciation or write-off assets | (20,634) | (20,634) | ||||||||||||||
Income tax and social contribution on realization | 7,016 | 7,016 | ||||||||||||||
Deemed cost of jointly-controlled subsidiary | ||||||||||||||||
Realization by depreciation or write-off assets | (348) | (348) | ||||||||||||||
Income tax and social contribution on realization | 118 | 118 | ||||||||||||||
Cash flow derivatives | 23.2.1(b) | |||||||||||||||
Change in fair value | 491 | 491 | ||||||||||||||
Transfer to result | 15,122 | 15,122 | ||||||||||||||
Tax on fair value gains | (5,309) | (5,309) | ||||||||||||||
Gain on interest in subsidiary | 1,511 | 1,511 | ||||||||||||||
Foreign currency translation adjustment | 36,623 | 36,623 | ||||||||||||||
As of June 30, 2012 | 312,923 | 20,929 | (412) | 12,119 | 4,617 | 350,176 | ||||||||||
As of December 31, 2012 | 299,305 | 20,207 | (11,816) | 37,158 | (7,443) | 337,411 | ||||||||||
Additional indexation | ||||||||||||||||
Realization by depreciation or write-off assets | (20,634) | (20,634) | ||||||||||||||
Income tax and social contribution on realization | 7,016 | 7,016 | ||||||||||||||
|
|
|
| |||||||||||||
Deemed cost of jointly-controlled subsidiary |
|
|
|
| ||||||||||||
Realization by depreciation or write-off assets | (733) | (733) | ||||||||||||||
Income tax and social contribution on realization | 249 | 249 | ||||||||||||||
Cash flow derivatives | ||||||||||||||||
Change in fair value | (1,473,946) |
| (1,473,946) | |||||||||||||
Transfer to result | (43,652) |
| (43,652) | |||||||||||||
Tax on fair value gains | 515,983 |
| 515,983 | |||||||||||||
| ||||||||||||||||
Loss on interest in subsidiary | (1,994) | (1,994) | ||||||||||||||
| ||||||||||||||||
Foreign currency translation adjustment | 99,728 |
| 99,728 | |||||||||||||
As of June 30, 2013 | 285,687 | 19,723 | (11,816) | (1,001,615) | 136,886 | (9,437) | (580,572) | |||||||||
(i) Realization under retained earnings (accumulated losses) as the asset is depreciated or written-off (CPC 26(R1)); |
56
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
(d) Absorption of accumulated losses
On April 2, 2013, the Ordinary Shareholders Meeting approved the absorption of accumulated losses recorded in 2012 in the amount of R$ 565,549 using part of the balance of the "capital reserve".
25. Earnings per share
The table below shows the reconciliation of profit or loss for the period adjusted for the amounts used to calculate basic and diluted earnings per share.
Jun/2013 | Jun/2012 | |||||||
Basic | Diluted | Basic | Diluted | |||||
3(b) | Revised | Revised | ||||||
Profit (loss) for the period attributed to Company's shareholders | ||||||||
of continued operations | 92,686 | 92,686 | (856,913) | (856,913) | ||||
Distribution of dividends attributable to priority: | ||||||||
Preferred shares class "A" | 92,526 | 92,606 | ||||||
Preferred share class "A" potentially convertible |
| 80 | ||||||
(the ratio of 2 shares class "B" for each share class "A") |
| |||||||
Preferred shares class "B" | 160 | |||||||
92,686 | 92,686 |
|
|
| ||||
|
|
| ||||||
Distribution of 6% of unit value of common shares |
|
|
|
|
|
| ||
|
|
| ||||||
Reconciliation of income available for distribution, by class (numerator): |
|
|
| |||||
Common shares |
|
|
| (485,830) | (485,649) | |||
Preferred shares class "A" | 92,526 | 92,606 | (371,083) | (370,945) | ||||
Preferred share class "A" potentially convertible |
| 80 | (319) | |||||
(the ratio of 2 shares class "B" for each share class "A") |
|
|
| |||||
92,526 | 92,686 | (856,913) | (856,913) | |||||
Weighted average number of shares, by class (denominator): | ||||||||
Common shares |
|
|
| 451,668,652 | 451,668,652 | |||
Preferred shares class "A" (i) | 343,848,120 | 343,848,120 | 344,990,720 | 344,990,720 | ||||
Preferred share class "A" potentially convertible |
|
|
| |||||
(the ratio of 2 shares class "B" for each share class "A") |
| 296,909 | 296,909 | |||||
343,848,120 | 344,145,029 | 796,659,372 | 796,956,281 | |||||
Earnings (loss) per share (in R$) | ||||||||
Common shares |
|
|
| (1.0756) | (1.0752) | |||
Preferred shares class "A" | 0.2691 | 0.2693 | (1.0756) | (1.0752) |
The information related to the earnings per share of the Company was presented in its 2012 annual financial statements, in Note 30.
57
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
26. Net sales revenues
Parent company | Consolidated | |||||||
Jun/2013 | Jun/2012 | Jun/2013 | Jun/2012 | |||||
3(b) | Revised | |||||||
Sales revenue | ||||||||
Domestic market | 10,321,698 | 9,002,074 | 14,276,914 | 12,517,898 | ||||
Foreign market | 3,239,042 | 2,840,447 | 7,873,879 | 7,680,225 | ||||
13,560,740 | 11,842,521 | 22,150,793 | 20,198,123 | |||||
Sales deductions | ||||||||
Taxes | (2,111,683) | (2,050,711) | (3,135,099) | (3,029,861) | ||||
Sales returns and other | (140,733) | (95,286) | (192,319) | (140,603) | ||||
(2,252,416) | (2,145,997) | (3,327,418) | (3,170,464) | |||||
Net sales revenue | 11,308,324 | 9,696,524 | 18,823,375 | 17,027,659 |
This table was presented in the 2012 annual financial statements of the Company, in Note 31.
27. Tax incentives
Consolidated | |||||||
Jun/2013 | Jun/2012 | ||||||
State of Alagoas Integrated Development Program - PRODESIN | (i) | 22,510 | 11,596 | ||||
REINTEGRA program | (ii) | 92,587 | 104,324 | ||||
115,097 | 115,920 |
(i) Recorded under “Net sales revenue” (Note 26).
(ii) Recorded under “Cost of goods sold”.
This table was presented in the 2012 annual financial statements of the Company, in Note 32.
58
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
28. Financial results
Parent company | Consolidated | ||||||||
Jun/2013 | Jun/2012 | Jun/2013 | Jun/2012 | ||||||
3(b) | Revised | ||||||||
Financial income | |||||||||
Interest income | 111,664 |
| 108,097 |
| 117,267 |
| 114,663 | ||
Monetary variations | 7,332 |
| 19,592 |
| 7,665 |
| 21,229 | ||
Exchange rate variations | 196,988 |
| 63,810 |
| 244,347 |
| 217,045 | ||
Other | 37,302 |
| 9,483 |
| 83,552 |
| 13,385 | ||
353,286 |
| 200,982 |
| 452,831 |
| 366,322 | |||
|
|
| |||||||
Financial expenses |
|
|
| ||||||
Interest expenses | (498,865) |
| (457,509) |
| (524,026) |
| (510,938) | ||
Monetary variations | (146,693) |
| (118,945) |
| (147,452) |
| (135,618) | ||
Exchange rate variations | 10,647 |
| (1,396,450) |
| (42,808) |
| (1,556,454) | ||
Inflation adjustments on fiscal debts | (44,775) |
| (119,078) |
| (104,851) |
| (132,225) | ||
Tax expenses on financial operations | (9,542) |
| (8,870) |
| (14,302) |
| (10,419) | ||
Discounts granted | (15,619) |
| (12,446) |
| (37,716) |
| (23,419) | ||
Loans transaction costs - amortization | (163) |
| (1,966) |
| (2,987) |
| (6,585) | ||
Adjustment to present value - appropriation | (168,876) |
| (98,534) |
| (292,373) |
| (135,804) | ||
Other | (17,524) |
| (22,916) |
| (59,299) |
| (64,297) | ||
(891,410) | (2,236,714) | (1,225,814) | (2,575,759) | ||||||
Total | (538,124) | (2,035,732) | (772,983) | (2,209,437) |
Parent company | Consolidated | |||||||
Jun/2013 | Jun/2012 | Jun/2013 | Jun/2012 | |||||
3(b) | Revised | |||||||
Interest income | ||||||||
Held for sale | 4,596 |
| 5,887 |
| 4,596 |
| 14,916 | |
Loans and receivables | 42,742 |
| 66,947 |
| 45,706 |
| 62,266 | |
Held-to-maturity | 9,947 |
| 8,298 |
| 11,728 |
| 8,298 | |
57,285 |
| 81,132 |
| 62,030 |
| 85,480 | ||
Other assets not classifiable | 54,379 |
| 26,965 |
| 55,237 |
| 29,183 | |
Total | 111,664 | 108,097 | 117,267 | 114,663 |
This table was presented in the 2012 annual financial statements of the Company, in Note 34.
59
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
29. Expenses by nature
Parent company | Consolidated | ||||||||
Jun/2013 | Jun/2012 | Jun/2013 | Jun/2012 | ||||||
3(b) | Revised | ||||||||
Classification by nature: | |||||||||
Raw materials other inputs | (8,428,947) | (7,289,628) | (14,261,829) | (13,250,932) | |||||
Personnel expenses | (543,676) | (539,531) | (878,500) | (861,430) | |||||
Outsourced services | (409,049) | (440,893) | (728,256) | (764,044) | |||||
Tax expenses | (1,835) | (13,296) | (3,165) | (26,306) | |||||
Depreciation, amortization and depletion | (599,445) | (552,052) | (952,012) | (891,634) | |||||
Freights | (465,696) | (418,681) | (718,436) | (619,038) | |||||
Other expenses | (183,109) | (147,773) | (247,066) | (213,722) | |||||
Total | (10,631,757) | (9,401,854) | (17,789,264) | (16,627,106) | |||||
Classification by function: | |||||||||
Cost of products sold | (9,988,118) | (8,746,223) | (16,786,296) | (15,628,111) | |||||
Selling | (99,842) | (91,214) | (195,571) | (180,216) | |||||
Distribution | (194,673) | (183,526) | (290,997) | (266,638) | |||||
General and administrative | (310,183) | (341,274) | (465,159) | (500,784) | |||||
Research and development | (38,941) | (39,617) | (51,241) | (51,357) | |||||
Total | (10,631,757) | (9,401,854) | (17,789,264) | (16,627,106) |
This table was presented in the 2012 annual financial statements of the Company, in Note 35.
60
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
30. Segment information
Jun/2013 | ||||||||||||||||||||
Reporting segments | Total | Braskem | ||||||||||||||||||
Basic | USA and | reportable | Other | Corporate | consolidated | Braskem | ||||||||||||||
petrochemicals | Polyolefins | Vinyls | Europe | segments | segments | unit | before adjustments | Eliminations | consolidated | |||||||||||
Net sales revenue | 12,012,422 | 7,928,361 | 1,266,851 | 3,170,811 | 24,378,445 | 46,942 |
|
| 24,425,387 | (5,602,012) | 18,823,375 | |||||||||
Cost of products sold | (11,113,942) | (6,956,871) | (1,157,013) | (3,036,140) | (22,263,966) | (52,093) |
|
| (22,316,059) | 5,529,763 | (16,786,296) | |||||||||
Gross profit | 898,480 | 971,490 | 109,838 | 134,671 | 2,114,479 | (5,151) |
|
| 2,109,328 | (72,249) | 2,037,079 | |||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and distribution expenses | (242,365) | (398,535) | (78,996) | (126,863) | (846,759) | (20,197) | (136,012) | (1,002,968) |
| (1,002,968) | ||||||||||
Results from equity investments |
|
|
|
|
|
|
|
|
|
|
| (3,194) | (3,194) |
| (3,194) | |||||
Other operating income (expenses), net | (14,346) | 34 | 958 | 48 | (13,306) | (2,753) | (38,099) | (54,158) |
| (54,158) | ||||||||||
(256,711) | (398,501) | (78,038) | (126,815) | (860,065) | (22,950) | (177,305) | (1,060,320) | (1,060,320) | ||||||||||||
Operating profit (loss) | 641,769 | 572,989 | 31,800 | 7,856 | 1,254,414 | (28,101) | (177,305) | 1,049,008 | (72,249) | 976,759 | ||||||||||
Jun/2012 | ||||||||||||||||||||
3(b) |
|
|
|
|
|
|
|
| Revised | |||||||||||
Reporting segments | Total | Braskem | ||||||||||||||||||
Basic | USA and | reportable | Other | Corporate | consolidated | Braskem | ||||||||||||||
petrochemicals | Polyolefins | Vinyls | Europe | segments | segments | unit | before adjustments | Eliminations | consolidated | |||||||||||
Net sales revenue | 11,689,015 | 6,747,445 | 925,109 | 2,733,532 | 22,095,101 | 37,610 |
| 22,132,711 | (5,105,052) | 17,027,659 | ||||||||||
Cost of products sold | (10,762,549) | (6,318,608) | (922,471) | (2,654,246) | (20,657,874) | (42,591) |
| (20,700,465) | 5,072,354 | (15,628,111) | ||||||||||
Gross profit | 926,466 | 428,837 | 2,638 | 79,286 | 1,437,227 | (4,981) |
| 1,432,246 | (32,698) | 1,399,548 | ||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and distribution expenses | (234,919) | (434,343) | (60,873) | (113,014) | (843,149) | (21,852) | (133,994) | (998,995) |
| (998,995) | ||||||||||
Results from equity investments |
|
|
|
|
|
|
|
|
|
|
| 2,080 | 2,080 |
| 2,080 | |||||
Other operating income (expenses), net | (17,985) | (4,997) | (849) | 258,610 | 234,779 | (2,465) | 50,155 | 282,469 |
| 282,469 | ||||||||||
(252,904) | (439,340) | (61,722) | 145,596 | (608,370) | (24,317) | (81,759) | (714,446) |
| (714,446) | |||||||||||
|
|
| ||||||||||||||||||
Operating profit (loss) | 673,562 | (10,503) | (59,084) | 224,882 | 828,857 | (29,298) | (81,759) | 717,800 | (32,698) | 685,102 |
The segment “United States and Europe” was presented in December 2012 as “International Business”.
The information related to the presentation of information by segment was presented in the 2012 annual financial statements, in Note 36.
61
Braskem S.A.
Notes to the financial statements
at June 30, 2013
All amounts in thousands of reais unless otherwise stated
31. Other net operating income (expenses)
In the period ended June 30, 2013, no material operations were classified under this item. In the period ended June 30, 2012, the main amount in this item was the indemnity envisaged in the agreement signed between Sunoco and Braskem America, amounting to R$ 263,571 and the reduction in the balance of the installment program of Law 11,941/09, amounting to R$ 80,496.
The information related to other net operating income (expenses) of the Company was presented in the 2012 annual financial statements, in Note 33.
32. Subsequent events
On July 24, 2013, Braskem Idesa received the first tranche under the Project Finance agreement signed in December 2012, amounting to R$ 3,316,211 (US$ 1,483,896). A portion of these funds will be used to settle the amounts lent by Braskem and Grupo Idesa (Note 1(b)).
62
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August9, 2013BRASKEM S.A. | |||
By: | /s/ Mário Augusto da Silva | ||
Name: | Mário Augusto da Silva | ||
Title: | Chief Financial Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.