Good afternoon, ladies and gentlemen. At this time, we would like to welcome everyone to Braskem's Second Quarter 2012 Earnings Conference Call. Today with us, we have Carlos Fadigas, CEO; Marcela Drehmer, CFO; and Guilherme Mélega, IRO and Corporate Controlling. We would like to inform you that this event is being recorded. [Operator Instructions] We have a simultaneous webcast that may be accessed through Braskem's IR website, www.braskem.com.br/ir. The slide presentation may be downloaded from this website. Please feel free to flip through the slides during the conference call. There will be a replay facility for this call on the website. We remind you that questions, which will be answered during the Q&A session, may be posted in advance on the website. Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Braskem management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and, therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Braskem and could cause results to differ materially from those expressed in such forward-looking statements. Now I'll turn the conference over to Guilherme Mélega, IRO and Corporate Controlling Officer. Mr. Mélega, you may begin your conference. Guilherme A. Mélega: Good afternoon, ladies and gentlemen. Thank you for participating in yet another Braskem earnings conference call. Today, we'll be commenting on our results for the second quarter and first half of 2012. First, we would like to remind you that pursuant to Federal Law 11638 from 2007, the results presented…

[Operator Instructions] The first question comes from Frank McGann from Bank of America.

I was just wondering a couple of things. One, in terms of demand trends, you've been successful over the last year, it seems, in raising market share. And I was wondering if you -- if that was a deliberate move and if you had made a change in pricing policy potentially to enable that to happen, so you would be more competitive against the imports and, as a result, could increase your share. And secondly, as you're looking forward into the third, the fourth quarter, obviously, demand has decelerated a lot in the first quarter. And my understanding is that June was particularly weak for overall demand in Brazil. What is your expectation or what are you seeing from your clients in July and August and as you look out over the next several months? Carlos José Fadigas De Souza Filho: Frank, it's Carlos Fadigas. I'll start with your second question and then address the market share you asked about. June, you're right, you're right. It was a particularly weak month. Naturally, it came from the fact that most of the customers were seeing prices falling internationally, and they knew the price would go further down so they delayed purchases as much as they could. And therefore, when you compare the market, not Braskem, but the market, the second quarter with the first quarter, you'd see a decline in 9%. But if we take the first half of the year, that's where you have a better period, so we can avoid the deep inventory effects and have a longer period to compare. So a longer period to compare, you see that the market grew the first half of the year compared to the first half of last year, 1%. So it's not a big growth. It's actually a very small…

Yes, it's very clear. If I could follow up with one just one real small detail. In EBITDA, there's a BRL 37 million adjustment for fixed assets and I was just wondering what that related to. Carlos José Fadigas De Souza Filho: Could you say that again, Frank, please?

Yes, in the EBITDA adjustment, I think it's on Page 21 of the press release, there's a BRL 37 million reais adjustment for some change to fixed assets and I was just wondering what that referred to or related to. Carlos José Fadigas De Souza Filho: Frank, let me.

Page 22, I apologize, Page 22, at the bottom. Carlos José Fadigas De Souza Filho: Okay, we found it. Let me suggest -- let me answer a few questions. The accounting team here is going to identify specifically what that is and I will give that answer as an answer one of the following questions, if you don't mind.

[Operator Instructions] The next question comes from Paula Kovarsky from Itau. Paula Kovarsky - Itaú Corretora de Valores S.A., Research Division: Just a follow-up question from the previous call. I would like to get a better understanding of this reclassification of financial expenses related to the lengthening of the time to pay Petrobras on naphtha purchases. Is it correct to say that in exchange for a larger time or larger number of days to pay, you're actually incurring in a higher price? I mean, you can always say, okay, this is the financial expense, but in essence, I mean you're paying a little bit more to Petrobras. Is this a correct interpretation? And if that's the case, what's the -- amid the 126 million that was adjusted to the financial expenses this quarter or the 74, excluding the number that pertains to the first quarter. What's the recurring level of financial expenses that we should expect? Or what's the penalty, if you like, for having 90 days rather than no additional days to pay? Carlos José Fadigas De Souza Filho: It's Carlos. I'll start the answer, and then I'll pass on to Marcela for her to complement. First of all, yes, the price includes the fact that you are paying in 90 days and, therefore, includes financial interest. The reason why we did not finance, we did not buy from Petrobras with a longer payment period in the past is because, in the past, they had a higher interest rate embedded in a longer-term payment, and we never felt that was to the benefit of Braskem to buy for the longer term because of the level of interest rate. Once we've reached an agreement on something reasonable, we decide to buy, paying 90 days. If these 90 days represent a…

No, you're right, Paula. In the case that we provide 90 days for payment for our clients, we have to reclassify in the same price tier that we are classifying a bit with conditions that Petrobras leading to Braskem. So it's the same price criteria for both sides, okay? And this is an accounting rule, actually. We have these EBITDA adjustments because of the accounting rules, so we have the obligation to do that, okay? Carlos José Fadigas De Souza Filho: Okay, the only additional comments that we should actually have done on that in the first quarter of the year because we haven't had this extended payment terms with Petrobras before. At first, we left the account expenses at the wrong place. And then we -- at the second part, we moved that to the right line, to the financial expense line.

Yes, yes. Actually the discussions with the auditors was that the criteria really became applicable because of the amount of the supply that was financed by Petrobras. The amounts increased between the first quarter and the second quarter. So during our discussions in the second quarter, we got the decision that the right thing to do was reclassify that from the inventory, to costs, to the financial expense, okay?

The next question comes from Marcus Sequeira from Deutsche Bank.

Fadigas, I was wondering if you could comment a little bit about -- we know the demand is -- continues to be pretty weak, but if you could comment about the potential capacity additions globally and how much of that has been postponed. And just a question also in Mexico. If we'd compare the price of gas that you have secured with PEMEX and the price of gas in the U.S., and if the U.S. market is a market you're targeting with that plant as well? Carlos José Fadigas De Souza Filho: Okay, let me start with Mexico, and then we move on to the capacity additions worldwide. First of all, one of the main criteria we had here when we set to negotiate and to set the limits of the project, the raw material price in the next quarter is that, first of all, it should be linked to the U.S.; and second, should include, I would say, a better price than the U.S. So it should be more competitive in order to justify the construction of a new cracker, the risks associated with entering the market with new capacity and gaining market share and so on. As the price of U.S. gas and ethylene go down and actually the price for our Mexican project go down as well. We don't see a scenario in which the Mexican project can't compete with U.S. Actually, we see it going down along with the U.S. prices and becoming more and more competitive. On top of that, we will just explain our favor -- there's no import tariff as part of the same trade agreement, the naphtha trade agreement, so the logistics on our side. One additional thing is, that once we establish operations in Mexico, and we are about to start…

[Operator Instructions] Next question comes from Frank McGann from Bank of America.

Yes, just you announced another share repurchase program. I was just wondering if you could comment on what -- I believe it's replacing the existing program. What percentage of the shares or number of shares were purchased under the last program relative to what was potentially purchasable? And secondly, given the level of leverage that you have, I'm wondering why you'd move forward with share repurchase programs and perhaps don't conserve cash for the investment programs that you have and the strong, strong expansion that you're planning over the next several years. Carlos José Fadigas De Souza Filho: Frank, it's a very good question. Let me start by saying that, first of all, we do believe that having an open and approved repurchase program provides the company with an important tool to defend and to sustain the price of the shares, especially in such a volatile market. So it's -- I would say, although it is, in my belief, a very good investment opportunity even for Braskem itself, although I do believe it is a good investment, but it's not -- this is not the main reason why we are -- we have an open program. We do believe that volatility is in excess of what it should be. Just to give an example, we had our share prices around BRL 14 per share at some point at the beginning of the year. We saw it go all the way down to roughly BRL 10 per share. I wish I could give you the numbers in U.S. Dollars, but these are the numbers I have in my memory. As our share price in reais was going down, we also saw the Brazilian stock exchange move down from 60,000 points down to 50,000, 52,000 points, 53,000 points. You should see it…

Frank, every 6 months, we try to do a clearance in those accounting. And this is basically an adjustment in some projects, in maintenance costs that we had in the past, and we had just to reduce these assets with these adjustments but did not impact the EBITDA, okay, it was out of the EBITDA.

That concludes the question-and-answer session for today. I'll turn the call back over to Carlos Fadigas for closing remarks. Carlos José Fadigas De Souza Filho: Well, I'd like to thank you for joining us again in this call. Just to share with you that, as you know, we're going through a very challenging time, both in terms of the economic growth globally and petrochemical spreads. But as we go through that, Braskem has been very disciplined, I would say, in making sure the fixed costs grow below inflation. So as we try to reduce costs, we should at least grow below inflation. Very interesting also in the Braskem additional investments we are making. We'd be able to finish 2 additional plants. We expect both the time line and also the budget, so they're going to be contributing to our EBITDA in the second half of the year. We've been trying to operate our plants close to true capacity as we can, naturally taking into consideration whether exports are profitable or not. And we regained some percentage points in market share. So we've been doing everything we can. On top of that, we've been also discussing with the Brazilian government and kind of a fiscal package to provide stimulus through the growth of the industry in Brazil, more specifically, the growth of the petrochemical industry in Brazil. As we take care of the short-term issues, we also are taking care of the long-term with investment in Mexico, that is progressing on schedule. So that's the commitment we have, and we remain, in the long term, optimistic about the petrochemical sector, not only Brazil, but also in the U.S., we have 5 polypropylene plants in Europe that at some point in the future, we will recover from the economic crisis. I'd like to thank you again and wish you all good afternoon.

Thank you for participating in Braskem's second quarter 2012 earnings conference call. This concludes the conference for today. You may all disconnect at this time.