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Braskem Day
Carlos Fadigas
     CEO
 April 19, 2011
Forward-looking Statements


This presentation contains forward-looking statements. These statements are not
historical facts and are based on management’s objectives and estimates. The words
"anticipate", "believe", "expect", "estimate", "intend", "plan", "project", "aim" and similar
words indicate forward-looking statements. Although we believe they are based on
reasonable assumptions, these statements are based on the information currently
available to management and are subject to a number of risks and uncertainties.


The forward-looking statements in this presentation are valid only on the date they are
made (December 31, 2010) and the Company does not assume any obligation to update
them in light of new information or future developments.


Braskem is not responsible for any transaction or investment decision taken based on the
information in this presentation.




                                                                                                2
Braskem: Leader in PE, PP and PVC production in
  the Americas
 Dominant market share in South America, with 69% of       Diversified portfolio of petrochemical products,
  the Brazilian market                                       with focus on PE, PP and PVC
 Strong growth track record with attractive project          Annual capacity of 6,460 kton
  pipeline in Brazil, Latin America and Sustainable         31 facilities in Brazil and USA
  chemicals (focus on renewable raw materials)                Naphtha and gas based crackers (70/30)
 Listed in 3 stock exchanges: BM&FBovespa, NYSE and          Petrobras as the main supplier in Brazil (~70%
  Latibex - 100% tag along                                     of naphtha needs and 100% of gas needs)
 Investment grade rating by S&P and Moody’s
 Market Cap (03/25/2011) – US$ 10 billion
 EV – Net debt Dec 2010 – US$ 16 billion                                                     3 PP

Financial Highlights
                         2009          2010
                        Braskem                     ∆
R$ billion                          Consolidated
                      Stand alone                                                                      1 PVC
Net Revenue              15.2          27.8        + 83%                                               1 Chlorine-soda
                                                            1 naphtha cracker
EBITDA                   2.5            4.1        + 64%     4 PE
Net Debt/EBITDA         2.67x          2.43x       - 9%      1 PP
                                                             1 PVC
                                                                                                  1 gas cracker
                  Potential Short term                      1 Chlorine-soda
                                                                                                  1 PP
                        Upside                                                                    1 PE

                                                                                                  1 naphtha
  Synergies:                                                           1 naphtha cracker       cracker
    ‐ Additional EBITDA – R$ 495 million on a                           1 ethanol cracker        2 PP
                                                                        5 PE
       recurring basis as of 2012, out of which R$                                                3 PE
                                                                        2 PP
       377 million in 2011
  Expectation of cycle recovery as of 2012
                                                                   Industrial Assets
                                                                                                                          3
Agenda


    Braskem
        A global player in the petrochemical industry
        Vision and Growth pipeline
        Main goals and priorities by business segment


    Recent financial performance



    Final considerations




                                                         4
Agenda


    Braskem
        A global player in the petrochemical industry
        Vision and Growth pipeline
        Main goals and priorities by business segment


    Recent financial performance



    Final considerations




                                                         5
Braskem: strong potential for outperform


           Braskem responsible for over 60% of the capacity share of thermoplastic
           resins* in South America – 69% market share in Brazil.
                                                                                          W.Europe
                                            North America                                # 29 players
      South America:                        # 32 players
      Second player has
      around 10% of Braskem’s
      capacity
                                                                                                                 N.Asia
                                                                                M.East                       ~# 150 players
               Capacity (000 Metric Tons)                                 # 38 players
                                                                                                            S.Asia
        Braskem:      5,510    Petroken:         180
                                                                                                        ~# 40 players
        Ecopetrol:   548       PETROQUIM:        120
                               Petroquímica Cuyo: 130
        Mexichem: 416                                     South America
        PBB Polisur: 650       Polinter:         495      # 12 players
        Pequiven:    185       Propilven:        115
        Petro Dow: 42          Solvay Indupa:    541




Source: Analysts reports, CMAI capacity list        * PE, PP and PVC                                                          6
Brazil: strong potential growth
      Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth%                                                        2010 Market Share
                Estimate: Resins Demand ~ 2.0x GDP
                                                                                                                              Others
                           15.0%
                                                                                                                                     5%
                                          10.0%                                                               Imports
                               2x GDP                                                                                       26%


                             7.5%
              1.0%                                                                                                                        69%
                                          4.5%
                                                                                                                                            Braskem
               -0.6%


               2009          2010        2011e     2012e   2013e     2014e     2015e

                     Brazilian GDP (Growth %)              Demand Growth (2x GDP) %


                     Per-capita Consumption of PE, PP and PVC (kg/person)
                                                                                                     65
                                                                                                            58

                          Brazil:                                                                                    46

                                                                                       23     25                              31
                                                                     21       22
                        18                   19      18     20
                                    17




                       2002     2003        2004    2005   2006     2007     2008      2009   2010   USA   Europe   Japan    China


Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE.                                                                                                    7
Intangible value: the reasons behind strong
 relationship with customers in Brazil
                     Customers’ relationship (development                               Export Plastic Program
                      of solutions)
                                                                    Export
                                                                                         Plastic Chain Competitiveness
  Market             New applications for plastic /              Incentives              Forum
                      applications with environmental
Development           benefits
                                                                                          Pro-plastic (with BNDES)
                     Technological innovation and
                      sustainability solutions                      Chain                 Industry technological agenda (with
                                                                   Capacity                MDIC and ABDI)
                      Fiscal Isonomy                                                     Qualified labor for third generation
 Domestic
                      Actions against tax distortions
  Market                                                                                  Plastic image
                      Program related to transformed
  Defense              goods quality / standardization                                    Environmental impact studies –
                                                                                           plastic x Ersatz (life cycle)

                      Chain financing (R$3 billion)                                      “I’m green” seal
                                                                 Sustainability
                      Creation of FIDCs oriented to             & Marketing              Brasilplast: fair as communication
   Fiscal              customers                                                           channel for plastic image promotion
                                                                                           campaigns
  Support             Chemical Industry National Agenda
                       (sets forth the allocation of resources                            Formula 1 campaign: green plastic,
                       for investments in capital goods in                                 recycling, wood plastic
                       the plastic transformed goods
                       industry)                                                          Mechanical recycling
                                                                                                                                  8
Ownership Structure
  Leveraging relationship with Petrobras
                                                                                                                        - World leader in
   - Conglomerate with                                                      Minority
                                                                                                                          E&P in deep
     investments in                                                       Shareholders
                                                                                                                          waters;
     different sectors;
                                                                                                                        - Present in the
   - More than 30-years
                                                                                                                          industry as
     in the petrochemical
                                    50.1% / 38.2%       0.0% / 5.9%       2.8% / 20.1%                  47.1% / 35.8%     investor, supplier
     industry.
                                                                         Voting Shares / Total Shares                     and customer;

                                                                                                                        - Investment Grade
                                                                                                                          by all 3 Rating
                                                                                                                          Agencies.




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




                      company

                  •   Board of Directors with 11 members: 6 nominated by Odebrecht, 4 by Petrobras and 1 independent

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

                       -    to lead all petrochemical investments identified by Petrobras and Odebrecht.



Source: Braskem                                                                                                                                9
Raw material matrix
     Diversification to compete globally
   Raw Material Profile* (2010)                                                      Current                                     Braskem Post- Mexico Project
                                                                                          3%                                                    3%
                                            8%                        13%
          37%            30%                                                                   13%
                                                                     18%
                                                                                                                 Implementation of                   24%
                                                                                                       17%        Project Pipeline
          17%
                                        92%
                         56%                                          69%                                                                 58%         15%
          46%                                                                        67%

                         14%

   Quattor        Braskem        Braskem                       Braskem balanced and diversified supply of raw materials
                                                                More
                  America                                        after
     Liquid (2)      Refinery propylene          Gas (1)
                                                                Competitive gas price vs. international reference prices
                                                             acquisitions
     Ethanol



    Propylene                                                                                    Naphtha / Condensate
    USG reference with competitive prices in 70% of US                                           66% of naphtha supplied by Petrobras with competitive
     supply                                                                                        price formula – based on international price
                                                                                                  34% direct imports from various international suppliers
    Gas
     100% Petrobras supply with competitive prices versus
      international prices

    Ethanol
(1) Ethane, Propane and LHR (FCC off gas)
(2) Naphtha and condensate                                 *Based on resin-production capacity. Sunoco buys propylene directly                                  10
Innovation & Technology

Innovation and Technology Center
Strengthening the value chain competitiveness
Structured resource base to support customer needs:
 Over R$ 330 million in R&D assets
                                                                                     PP
 More than 190 researchers                                                      Coffee Bags

 8 pilot plants
 More than 400 patents filed worldwide
 Partnership with universities and R&D centers in Brazil and abroad
 12% of Polymer Business Unit revenues results from new products launched
  in the past 3 years
                                                                                     PE
                                                                             Rotomolded Manhole

                                           PE


                                   Innovation pipeline
          BIOPOLYMERS                                         PP
                                  NPV: ~US$ 510 million


                                                                                     PVC
                                          PVC                                       Doors


                                                                                                  11
Innovation & Technology

             PP - NEW PP WASHING MACHINES                      PP - LOW VOC AUTOMOTIVE GRADE

       Partners: Electrolux and Colormaq                  Partner: Lyondell-Basell Brazil
       Innovation: Steel and PET replacement in           Innovation: High performance grade for
       washing machine body part (lower cost and          automotive compounds.
       weight)                                            Target Sales: 4 kton/year
       Target Sales: 6 kton/year




        PE - LARGE ROTOMOLDED WATER TANKS                                PE - GRAIN BAGS

      Partner: Fortlev                                    Partner: Pacifil
      Innovation: Fiberglass tank replacement             Innovation: Lower cost and faster installation
      Target Sales: 32 kton/year                          with flexible silos for grain storage
                                                          Target Sales: 5 kton/year




                    PVC - PVC WINDOWS                        PVC - PVC ROOF TILES (To be launched)
                                                    PP
       Partners: Claris, Primeira Linha, Veka and        Partners: Not disclosed now due to secrecy
       Weiku                                             agreement
       Innovation: Increase PVC window profile           Innovation: Asbestos and Clay roof tiles
       application in the market                         replacement
       Target Sales: 2 kton/year                         Target Sales: 120 kton/year



                                                                                                           12
Synergies from Quattor acquisition totaling
    R$377 million in EBITDA for 2011
   2011 EBITDA*: R$377 million                                                              2012 EBITDA*: R$495 million
R$ milhões
 R$ million                                                                  R$ million
                                                                           R$ milhões


                                             61                                                                          59
                                                                                                    87
                             82
                                                             377                                                                           495
                                                                                 350
         234


       Industrial
       Industrial          Logistics
                           Logística       Supply
                                          Suprimentos   EBITDA Synergies
                                                        EBITDA Sinergias      Industrial
                                                                               Industrial         Logistics
                                                                                                  Logística            Supply
                                                                                                                      Suprimentos   EBITDA Synergies
                                                                                                                                      EBITDA Sinergias




          Identification of new opportunities, efficient and rapid implementation of initiatives to
          capture synergies
                 Integrated planning for industrial units                                        Additional R$490 million in NPV
                 Centralized maintenance strategy                                                 of synergies that do not affect
                                                                                                    EBITDA – financial, fiscal, etc
                 Optimization of freight and gains in distribution and storage
                 Joint purchase of materials for industrial operations
Source: Braskem                                                                              * Annual and Recurring                                  13
Outlook on the global petrochemical industry
      Ethylene: Operating rate 2010
MM ton                                                                                                                Industry in 2010
20                         94                                                                                          Operating rates decreased in 4Q10 driven by the
                                                                                  91     90
                           89             88                                                                            rigorous winter in the Northern hemisphere and
                                                                    86            84 *
15             84                         82                        83                                                  operational problems in Europe and Middle East
               81                                                                        80
                                                      78
                                                       74                                                              Competitive cost base allowed the US to
10
                                                                                         70                             operate at higher rates than other regions
                                                                                                                        throughout 2010
  5                                                                                      60
                                                                                                                       Global operating rate at 83.5% in 2010, 3.1 p.p.
                                                                                                                        over previous forecast
  0                                                                                      50
          Europe    N. America     Asia        M. East        World          Braskem                                   Demand grew by 6.7%, or 7.4 million ton.
                                                                                                                        More than 50% higher than previous forecast
           Capacity 4Q      Operating rate 4Q10 (%)         Operating rate 3Q10 (%)
                                                                                                                      Global Scenario
                                                                                                                       New capacity additions can lead to the closing
      Ethylene: Supply and Demand Balance
                                                                                                                        down of non competitive assets, especially in
MM ton                                                                                                                  Europe and Asia (Japan)
 200                                                                  90.7          91.3
                                       86.3
                                                      88.7                                                             No significant expected change in ME
 150         83.5          83.9                                                                                         operating rate – structural problems in Iranian
                                                                                                                        plants
 100                                                                                                                   High volatility in oil prices boosts naphtha
                                                                                                                        prices. Prices of resins and basic petrochemicals
  50
                                                                                                                        follow this trend
      0                                                                                                                Expectation of improvement in the industry
            2010          2011e       2012e           2013e         2014e          2015e                                profitability as of 2H11
               Capacity               Demand                     Operating Rate (%)


Source: CMAI, Parpinelli Tecnon                * Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days.                                             14
Demand growth shall overcome new capacity
   additions
                                                                  Ethylene
                                                                                                                   Demand
                                     6.8%
     6.7%
                          Capacity 6.7%
                                                                  5.2%
                                                                                4.5%          4.4%       4.3%     CAGR 10-15
                          (MM ton)                  3.4%                                                             4.4%
     8.4%                             5.2%             4.5%         4.4%
                                                                                   4.3%       4.0%
                       3.4%
                                   6,521            3.2%
                                                                  2.3%          2.6%                                Supply
                                                                     3.3%                                2.1%
                       2.6%           2.3%             2.5%                                    6,090
  Asia
                                                    4,514
                                                                                   2.1%
                                                                                                                  CAGR 10-15
  Africa                             6,521
                           9,010                                                               2,805
                                                                                             6,090
                                                                                                                     2.8%
  Asia
  Middle East
     2010              2011             2012            2013
                                                     3,216        3,423
                                                                     2014          2015
                                                    4,514                       3,814
                                     3,229                                                      400      3,417
   Africa
  Europe
                           9,010                                                             2,805
  Middle East                        2010           2011         2,652
                                                                 2012
                                                                 3,423          2013           2,545
                                                                                              2014      2015
  Americas                            468           3,216
                                                    1,816                      3,814                      2,462
                                     3,229                                      3,774         400       3,417
  Europe
  Closures                           2,067             529 Demand Growth %                      490
                                                                   1,200              Supply Growth %
                                                                                                962        550
                                                       743        2,652                      2,545         375
  Americas
  Postponed/Delayed                   468            1,816         (699)                       (150)    2,462
                                    (1,282)          (1,227)                   3,774
   Closures                          2,067            529         1,200                       490
  Supply Growth %                                     743                                     962        550
                                                                                                         375
   Postponed/Delayed                (1,282)                       (699)                      (150)
  Demand Growth %                    2010           (1,227)
                                                      2011         2012          2013          2014       2015
                                               -19% Delayed
                                     2010           2011          2012          2013          2014      2015
                                               -19% Delayed
                               Limited additional capacity until 2015

                                      No new investments announced motivated by financial crisis

                                      Sanctions in Qatar restrict investments in petrochemicals

                               No further availability of cheap gas for new projects in Middle East

                               Greenfield projects: 5-6 years to startup
Source: CMAI, March/2011                                                                                                       15
World indicative ethylene cash costs




Source: CMAI                           16
Agenda


    Braskem
        A global player in the petrochemical industry
        Vision and Growth pipeline
        Main goals and priorities by business segment


    Recent financial performance



    Final considerations




                                                         17
Strategic Vision




   “BECOME THE GLOBAL
  SUSTAINABLE CHEMICAL
    LEADER, INNOVATING
  FOR BETTER SERVE THE
         PEOPLE”.




                         18
3 Main growth/value drivers


Brazil
    The country will need a new thermoplastic plant per year until 2020
    Gas supply from pre-salt exploration can bring competitiveness to the new
     projects in Brazil
Internationalization
    Latin America and US as good alternatives for future competitive feedstock
     supply
    Partnerships with local players to develop local industry at competitive gas
     prices
Sustainable Chemicals
    Initial focus in renewable raw materials with no changes for customers in
     terms of investments and applications
    Partnerships to enter other avenues in green products



                                                                                    19
Brazil – adding value to the Vinyls chain


 PVC Expansion
 Operational start-up : May 2012
 Expansion of 200 kton/y in PVC capacity in Alagoas, using EDC
  (1st intermediate product in the PVC chain) currently exported
 Investments of ~R$850 million
 Expected NPV ~US$450 million
 Long term financing from BNDES (up to R$525 million) and
  from BNB (R$200 million) at very competitive costs
 Expected disbursement of R$380 million in 2011
 Support for Brazil’s infrastructure projects
 Brazil currently imports ~30% of its needs

     PVC Domestic Demand (kton)
                                       1,119
                         982    950
                  857                  31%
      748                34%    26%
                  19%
      17%                                      Imports             New Projects
                                               Domestic Sales
                                                                   Industrial Assets



     2006         2007   2008   2009   2010

Source: Braskem                                                                        20
Brazil – adding value to the cracker chain




            Polybutadiene      SBR                        SSBR                  NBR                       TR
                               Styrene Butadiene Rubber   Solution SBR          Acrylonitrile Butadiene   Thermoplastic Rubber
 Butadiene                                                                      Rubber
 Operational start-up : 2013
 Capacity: 100 kton/y
 Location: Triunfo (Rio Grande do Sul)
 Investments of R$300 million
 Raw material for the manufacture of rubber tires
  and synthetic rubbers
 Attractiveness worldwide
 Tighter market balance sustaining higher prices
       Light feedstock expansion limiting the                   New Projects
        availability of C4 supply
                                                                 Industrial Assets
 Continuous consumption growth
       Higher demand from emerging markets
       Recovery of the mature markets
Source: Braskem                                                                                                                  21
Brazil – potential capacity expansion projects


                      2013 - 2015                         2016 - 2018

                 ~ 130 kton/y through DBNs
                  adding LDPE, HDPE and
      PE          LLDPE in Bahia, Rio de
                  Janeiro and São Paulo
                  (southeast of Brazil)

                 ~ 100kton/y through DBNs in         COMPERJ – from 1.1 to 1.5
                  Rio Grande do Sul (south of          million tons of ethylene
                  Brazil) and São Paulo
     PP           (southeast of Brazil) or 300
                  kton/y trhrough a Greenfield
                  in Bahia (northeast of Brazil)


                 Greenfield adding ~250
     PVC          kton/y in the northeast of
                  Brazil




                                                                                   22
Sustainable Chemicals


                                                                                 Development
                                                     Green PP
                         Green PE                      2013               Partnerships for the
                       2010 – started                                      development of competitive
                                              Innovation in bioplastic    technologies
                        up in 4Q10
                                               market
                  Successful track record for Production integrated with
Braskem becomes implementing projects:          green propylene            Cooperation agreement with
a global leader in term and costs              Capture of 2.3t CO2/t PP    Cenpes (Petrobras Research
   biopolymers                                                              Center)
                  Capture of 2.5t CO2/t PE
                  Partnership with                                        Development of other cracks
                   Customers                                                streams to sustainable
                                                                            chemicals
                                                                          PE integrated project study




                                                                                                          23
Access to competitive feedstock
    The Ethylene XXI Project (Mexico)

 Mexico: Ethylene XXI Project

 Operational start-up: January 2015
 JV between Braskem (65%) and the Mexican
  group IDESA (35%) for the purchase of ethane
  from PEMEX
 Integrated project: 1 Mton/y of ethylene and
  1 Mton/y of PE
 Fixed Investment: US$ 2.5 billion over 5 years
  (project finance – 70% debt/30% equity)
 Expected NPV over US$ 3 billion
 Strategic partnership with Ineos and Lyondell
  Basell for PE plants technologies and with
  Technip for the cracker
 Financial Advisor hired: Sumitomo Bank
 Structuring of the participation of ECAs and
  MLAs1 – already received over US$ 6 billion in
  letters of interest




                            1   Export Credit Agency (ECA) and Multilateral Agency (MLA)
Source: Braskem                                                                            24
Mexican Polyethylene Market
       Currently deficit above 1.1 Mton (2010) - ~70% of the market – being supplied by
             US players

       Estimated deficit in 2015 (project start-up): 1.7 Mton

       Annual Growing rate foreseen: 4.5 % (Period: 2010-2025)

                                                       Polyethylene Mexican Market
             4,0
             3,5
             3,0
                                                                                                                                                  1,6   1,7
MMton/year




             2,5                                                                                                                1,3   1,4   1,5
                                                                                                              1,0   1,1   1,2
                                                                                     0,7      0,8     0,9
             2,0
             1,5                                                         1,4   1,5
                                                             1,1   1,3               1,0      1,0     1,0     1,0   1,0   1,0   1,0   1,0   1,0   1,0   1,0
                                     1,2   1,1   1,0   1,1
             1,0   1,1   1,1   1,1

             0,5                                                         0,8   0,8   0,8      0,8     0,8     0,8   0,8   0,8   0,8   0,8   0,8   0,8   0,8
                               0,5   0,5   0,6   0,7   0,7   0,8   0,8
                   0,4   0,5
              -
                   2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

                                                                     Supply    Ethylene XXI         Deficit




                                                                                                                                                              25
Mexican Converters Industry
3,500 plastics converters

 84% small and micro companies

 More than 5 Mton of plastics conversion, with 1.8 Mton of Polyethylene

 Main application: Packaging (48% market)

Sales to distributors: Braskem ≠ Pemex

      Converters Profile


                Big
                4% Medium
                    12%




    Micros                  Small
     60%                    24%




                                    Total: 3,500 Converters

                                                                           26
Unique pipeline of growth in the Americas
  Consolidated Project Pipeline




                                                                                                  Brownfield/Greenfield expansion
                                                                                                   projects in Brazil: PE and PP assets
                                                                                                  Comperj – integrated complex in Rio
                                                                     Ethylene XXI - Mexico        de Janeiro (southeast Brazil)
                                                                      (+ 1,000 kton/y ethylene    New Biopolymers Plants in Brazil –
                                                                      and + 1,000 kton/y PE)       integrated project (1st and 2nd
                                   Green PE – already               Butadiene (100 kton/y)       generation)
                                    operational
                                    (+ 200 kton/y ethylene)          Green PP                    Peru(+ 600 to 1,000 kton/y
                                                                      (+ 30 kton/y ethylene/       ethylene/PE)
                                   PVC Expansion                     propylene)
                                    (+ 200 kton/y)                                                Venezuela – under revaluation



                                         2010 - 2012                     2013 - 2015             Projects under evaluation


                                               Resin Capacity CAGR for 2010-2015: +4.3% p.y.
                                               Diversification of raw materials and world-class assets
                                               Fiscal discipline
                                               Excellent track record of projects execution
Source: Braskem                                                                                                                           27
Agenda


    Braskem
        A global player in the petrochemical industry
        Vision and Growth pipeline
        Main goals and priorities by business segment


    Recent financial performance



    Final considerations




                                                         28
Basic Petrochemicals priorities

  Operational excellence, as well as in HSE and cost competitiveness

  Maximize the capture of synergies from the integration process of Quattor’s Basic
  Chemicals business

  Ensure energy efficiency and competitive sources

  Redesign of the petrochemical complexes (chains and infrastructure), identifying
  opportunities to add value to available chains

  Detail the investment plan for meeting future domestic demand of basic
  petrochemicals

  Prepare and implement a plan to capture synergies from Petrobras refineries

  Identify business opportunities related to Pre-Salt, from existing product portfolio



                                                                                         29
Polymers priorities

  Operational excellence, as well as in HSE and cost competitiveness

  Maximize synergies capture from the integration process of Quattor PE and PP
  businesses

  New product portfolio, reducing industrial and supply chain complexity with less
  SKU´s

  Continuous effort of Braskem with its customers to create value through innovation
  and cost efficiency, bringing new solutions to the people

  Plastics uses and advantages promotion

  Detail the investment plan for meeting the Brazilian demand for PE, PP and Vinyls

  Identify business opportunities related to Pre-Salt, from existing product portfolio



                                                                                         30
International business priorities

  Conclude basic engineering (FEL 3) and project finance in order to obtain FID (final
  investment decision) for the Mexico Project in 2011

  Identify and implement synergies opportunities from operations in USA and Mexico

  Advance in the integration and operational improvement process of the PP business
  in the USA

  Assess potential acquisition of assets in the USA, aimed at increasing Braskem’s
  market share and value creation (“smart buy”)

  Analyze opportunities related to shale gas availability

  Expand Braskem’s leadership in Sustainable Chemistry

  Ensure participation in potential projected in Peru, Venezuela and Bolivia



                                                                                         31
Agenda


    Braskem
        A global player in the petrochemical industry
        Vision and Growth pipeline
        Main goals and priorities by business segment


    Recent financial performance



    Final considerations




                                                         32
Main numbers for 2010 x 2009

                         Net Revenue (R$ million)      Net Revenue (US$ million)          Net Income (R$ million)

                                      +23%                       +36%                                  +375%
                                             27.829                                                            1,889
                                                                         15.833
                           22.647
                                                         11.620



                                                                                                 398



                            2009                2010      2009           2010                   2009           2010
              Exports           23%             26%      23%              26%



                         EBITDA (R$ million)           EBITDA (US$ million)                   Dividends (R$ million) *

                                  +27%                                                                 +139%
                                                               +41%
                                         4.055                                                                   666
                                                                        2.308
                        3.181
                                                       1.638

                                                                                                 278




                        2009             2010          2009             2010                    2007            2010
                                                                                   % of Net
                                                                                                 51%             40%
                                                                                   Income




* 2007: Last dividend distribution                                                                                       33
Capacity utilization rates were positively impacted by
    the improvement of Quattor’s assets
    Braskem consolidated operating rates                                         %
                                                                                                             Quattor - Ethylene
      Ethylene              Polyethylene     Polypropylene                 PVC
                                                                                                                                  89%   94%
                                                                     94%     93%                                    83%
     86%     87%                   83%               85%                                                  71%
                            78%               80%                                                  63%




                                                                                                   4Q09   1Q10      2Q10      3Q10      4Q10
     2009    2010          2009   2010        2009   2010           2009     2010




               Raw material supply regularization, in the Southeast and Rio de Janeiro complex, gradually increased
                the operating rates of Quattor’s assets:
                      RJ unit presented a record rate of 93% in the last quarter of the year
               Continuous operational improvement of existing assets (record production rates in the south
                complex)
               Scheduled maintenance shutdown at Bahia’s cracker in the 4Q10 had a higher influence in the PVC
                production, partially impacting the average operating rate of PE and PP



Source: Braskem                             *2009 data does not include Quattor expansion of 200 kton                                          34
Value added products and potential market growth
     are key differentiators of value creation
   Braskem’s Performance – 2009 Vs. 2010 (Thousand tons)
                            Braskem                                                 Origin of Imports in 2010
                                                                                       (PE, PP and PVC)
                                                   +11%     3,413
                                           3,072




                                                                                                        Others
                                           2009                 2010                                     14%
                                                                                               Europe
                                                                                                10%              North America
   Braskem’s Sales Profile – 2010                                                            Asia
                                                                                                                     29%

                                                                                              10%

                           OTHERS                                                    Mexico      Colombia        Argentina
                                                                                      1%           15%
         AGRIBUSINESS                                                                                               21%
                                     10%
       INDUSTRIAL               4%                                       FOOD
                                                          29%          PACKAGING
                           4%
  AUTOMOTIVE          6%


        RETAIL        7%                                                                 Americas account for 67% of imports

                           9%
                                                     18%
                                                                                       Imports represented 26% of the
       HYGIENE AND
                                     13%
                                                                                      domestic market
        CLEANING                                                  CONSTRUCTION

                           CONSUMER
                             GOODS

Source: Abiquim, Braskem                                                                                                         35
Value creation through acquisitions

Quattor’s EBITDA Performance (R$ million)

                                                       +19%      361

                                         +41%
                                                   302
                                                                                                  984
                                    214                                                  +78%
                         +99%
                                                                                  554
                        107




                       1Q10         2Q10          3Q10          4Q10              2009            2010

Braskem America’s EBITDA Performance (US$ million)

                              37                                                                114
                                                                 -30%                +73%
                                                         32
                              26*
                                           22                           23         66




                                                                                  2009          2010
                          1Q10          2Q10           3Q10           4Q10
                         *Excluding the non-recurring positive ajustment in the
                               inventory booking criteria of R$ 10 MM.

                                                                                                         36
Indebtedness and leverage decrease
                                                  Dec 2009                                    Dec 2010

                                    Gross Debt:      R$ 17,637 MM       -28%    Gross Debt:      R$ 12,728 MM

                                    Net Debt:        R$ 11,417 MM       -14%    Net Debt:        R$ 9,839 MM

                                    EBITDA:          R$ 3,181 MM                EBITDA:          R$ 4,055 MM
                  LEVERAGE




                                    Average Debt Term:   6.6 years             Average Debt Term:        12.5 years


                                    Gross Debt/EBITDA:       5.54x             Gross Debt/EBITDA:           3.14x

                                    Net Debt/EBITDA:         3.59x      -32%   Net Debt/EBITDA:             2.43x




                                                                                                                Change
                             Million of R$                                       2010             2009            (%)
                             Net Financial Result                                -1.618           266                 -
                               Foreign Exchange Variation (FX)                    405             2.782             -85%
                               Monetary Variation (MV)                            -355            -511              -31%
                             Net Financial Result Excluding FX and MV            -1.668          -2.005             -17%

                                              Non-recurring Financial Expenses: R$464 million in 2010




Source: Braskem                                                                                                            37
Debt reduction and lengthening the average maturity
of debt
                                                                                                                             DEBT PROFILE
                                             Amortization Schedule(1)                                                             2010
                                                 (million of R$)                                                                   Foreing
                                                  12/31/2010                                                                       Entities
                                                                                                                                     1%
                                                                                                                                                     Gov.
                                                                                                                                                    Entities
                                                                                                                Capital                              26%
            583*
                                                                                                                Market
                                                                                                      20%        38%
            393

                        13%                  14%
                                                       13%
                                  10%                                        11%
                                                                                          10%        2,594
 2,889                 1,733                1,820                  8%
           2,496                                      1,694                 1,360
                                 1,245                           1,073                  1,244                                                     Banks
                                                                                                                                                  35%

                                                                                                                                   2009
                                                                                                                                      Foreing
          12/31/10      2011     2012       2013       2014       2015       2016/       2018/        2020
                                                                                                                                      Entities
            Cash                                                             2017        2019        onwards
                                                                                                                                        5%
                                                                         (1) Does not
                                                                                    include transaction costs
               Invested in R$                                                                                      Capital
                                                                                  *US$350 million of Stand by                                             Gov.
               Invested in US$                                                                                     Market                                Entities
                                                                                                                    21%                                   22%
           Issue of US$450 million in perpetual bonds, project finance prepayment and
           others financing operations lengthened the average debt term to 12.5 years


         Corporate Credit Rating – Global Scale
         Agency                    Rating                  Outlook                 Reviewed in
                                                                                                                                                 Banks
         S&P                        BBB-                      Stable               03/30/2011                                                    52%

         Moody’s                    Baa3                      Stable               03/31/2011                              More balanced source of
                                                                                                                          funds.
         Fitch Ratings              BB+                    Positive                01/11/2011
                                                                                                                                                                    38
Total Investment in 2011 is estimated at R$1.6 billion

                         Investments
                           Investimentos
                            (R$ million
                             R$ milhões)

                  1,777                    1,644

                   373                             Maintenance Shutdown
                                            391
                                                   HSE                               For 2011, capex is estimated at R$
                   127
                    85                      142    Productivity                      1.6 billion, out of which
                   211                      94
                                                   Capacity Increase / PVC Alagoas   approximately 30% destined to

                   283                      407    Equipment Replacement             capacity expansion projects, 20% to
                    6                              Quantiq                           scheduled maintenance shutdowns,
                   343                      243    Green PE                          and the remaining to operational
                   47                       89     Mexico                            investments.
                   301                      278    Others


                  2010                     2011e



Source: Braskem                                                                                                            39
Agenda


    Braskem
        A global player in the petrochemical industry
        Vision and Growth pipeline
        Main goals and priorities by business segment


    Recent financial performance



    Final considerations




                                                         40
Outlook and Priorities
Petrochemical market
    Political instability in Arab countries and oil price volatility
    Global petrochemical scenario continues to be marked by recovery, but oversupply is still expected
    for 2011. Mitigating factors:
          Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran
          Strong demand from emerging countries like China, India and Brazil
Braskem priorities
    Strengthening of the Brazilian petrochemical and plastics production chain
    Guarantee, through an investment plan, the supply to the Brazilian future market growth: ~2x GDP
    Ensure capture of identified synergies
    Add value through the acquired assets
          Quattor: continue improvement in its operational efficiency
          Braskem America: return above capital employed
    Ensure domestic competitive feedstock for both current assets and new capacities, strengthening the
    Brazilian petrochemical industry;
    Maintain the capital structure health, making viable the execution of the investment plan while
    maintaining the investment grade;
    Develop partnerships required for the Company’s growth;
    Ensure that Braskem follows its growth course towards a stronger and more competitive position in
    the global industry
                                                                                                              41
Braskem Day
Carlos Fadigas
     CEO
 April 19, 2011

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Braskem Day: Forward-Looking Statements and Financial Highlights

  • 1. Braskem Day Carlos Fadigas CEO April 19, 2011
  • 2. Forward-looking Statements This presentation contains forward-looking statements. These statements are not historical facts and are based on management’s objectives and estimates. The words "anticipate", "believe", "expect", "estimate", "intend", "plan", "project", "aim" and similar words indicate forward-looking statements. Although we believe they are based on reasonable assumptions, these statements are based on the information currently available to management and are subject to a number of risks and uncertainties. The forward-looking statements in this presentation are valid only on the date they are made (December 31, 2010) and the Company does not assume any obligation to update them in light of new information or future developments. Braskem is not responsible for any transaction or investment decision taken based on the information in this presentation. 2
  • 3. Braskem: Leader in PE, PP and PVC production in the Americas  Dominant market share in South America, with 69% of  Diversified portfolio of petrochemical products, the Brazilian market with focus on PE, PP and PVC  Strong growth track record with attractive project  Annual capacity of 6,460 kton pipeline in Brazil, Latin America and Sustainable  31 facilities in Brazil and USA chemicals (focus on renewable raw materials)  Naphtha and gas based crackers (70/30)  Listed in 3 stock exchanges: BM&FBovespa, NYSE and  Petrobras as the main supplier in Brazil (~70% Latibex - 100% tag along of naphtha needs and 100% of gas needs)  Investment grade rating by S&P and Moody’s  Market Cap (03/25/2011) – US$ 10 billion  EV – Net debt Dec 2010 – US$ 16 billion  3 PP Financial Highlights 2009 2010 Braskem ∆ R$ billion Consolidated Stand alone  1 PVC Net Revenue 15.2 27.8 + 83%  1 Chlorine-soda 1 naphtha cracker EBITDA 2.5 4.1 + 64%  4 PE Net Debt/EBITDA 2.67x 2.43x - 9%  1 PP  1 PVC  1 gas cracker Potential Short term 1 Chlorine-soda  1 PP Upside  1 PE  1 naphtha  Synergies:  1 naphtha cracker cracker ‐ Additional EBITDA – R$ 495 million on a  1 ethanol cracker  2 PP  5 PE recurring basis as of 2012, out of which R$  3 PE  2 PP 377 million in 2011  Expectation of cycle recovery as of 2012 Industrial Assets 3
  • 4. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 4
  • 5. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 5
  • 6. Braskem: strong potential for outperform Braskem responsible for over 60% of the capacity share of thermoplastic resins* in South America – 69% market share in Brazil. W.Europe North America # 29 players South America: # 32 players Second player has around 10% of Braskem’s capacity N.Asia M.East ~# 150 players Capacity (000 Metric Tons) # 38 players S.Asia Braskem: 5,510 Petroken: 180 ~# 40 players Ecopetrol: 548 PETROQUIM: 120 Petroquímica Cuyo: 130 Mexichem: 416 South America PBB Polisur: 650 Polinter: 495 # 12 players Pequiven: 185 Propilven: 115 Petro Dow: 42 Solvay Indupa: 541 Source: Analysts reports, CMAI capacity list * PE, PP and PVC 6
  • 7. Brazil: strong potential growth Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth% 2010 Market Share Estimate: Resins Demand ~ 2.0x GDP Others 15.0% 5% 10.0% Imports 2x GDP 26% 7.5% 1.0% 69% 4.5% Braskem -0.6% 2009 2010 2011e 2012e 2013e 2014e 2015e Brazilian GDP (Growth %) Demand Growth (2x GDP) % Per-capita Consumption of PE, PP and PVC (kg/person) 65 58 Brazil: 46 23 25 31 21 22 18 19 18 20 17 2002 2003 2004 2005 2006 2007 2008 2009 2010 USA Europe Japan China Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE. 7
  • 8. Intangible value: the reasons behind strong relationship with customers in Brazil  Customers’ relationship (development  Export Plastic Program of solutions) Export  Plastic Chain Competitiveness Market  New applications for plastic / Incentives Forum applications with environmental Development benefits  Pro-plastic (with BNDES)  Technological innovation and sustainability solutions Chain  Industry technological agenda (with Capacity MDIC and ABDI)  Fiscal Isonomy  Qualified labor for third generation Domestic  Actions against tax distortions Market  Plastic image  Program related to transformed Defense goods quality / standardization  Environmental impact studies – plastic x Ersatz (life cycle)  Chain financing (R$3 billion)  “I’m green” seal Sustainability  Creation of FIDCs oriented to & Marketing  Brasilplast: fair as communication Fiscal customers channel for plastic image promotion campaigns Support  Chemical Industry National Agenda (sets forth the allocation of resources  Formula 1 campaign: green plastic, for investments in capital goods in recycling, wood plastic the plastic transformed goods industry)  Mechanical recycling 8
  • 9. Ownership Structure Leveraging relationship with Petrobras - World leader in - Conglomerate with Minority E&P in deep investments in Shareholders waters; different sectors; - Present in the - More than 30-years industry as in the petrochemical 50.1% / 38.2% 0.0% / 5.9% 2.8% / 20.1% 47.1% / 35.8% investor, supplier industry. Voting Shares / Total Shares and customer; - Investment Grade by all 3 Rating Agencies. • Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned Governance company • Board of Directors with 11 members: 6 nominated by Odebrecht, 4 by Petrobras and 1 independent • Sole vehicle for petrochemical investments of both shareholders, Braskem has the right: - to lead all petrochemical investments identified by Petrobras and Odebrecht. Source: Braskem 9
  • 10. Raw material matrix Diversification to compete globally Raw Material Profile* (2010) Current Braskem Post- Mexico Project 3% 3% 8% 13% 37% 30% 13% 18% Implementation of 24% 17% Project Pipeline 17% 92% 56% 69% 58% 15% 46% 67% 14% Quattor Braskem Braskem Braskem balanced and diversified supply of raw materials More America after Liquid (2) Refinery propylene Gas (1) Competitive gas price vs. international reference prices acquisitions Ethanol Propylene Naphtha / Condensate USG reference with competitive prices in 70% of US  66% of naphtha supplied by Petrobras with competitive supply price formula – based on international price  34% direct imports from various international suppliers Gas  100% Petrobras supply with competitive prices versus international prices Ethanol (1) Ethane, Propane and LHR (FCC off gas) (2) Naphtha and condensate *Based on resin-production capacity. Sunoco buys propylene directly 10
  • 11. Innovation & Technology Innovation and Technology Center Strengthening the value chain competitiveness Structured resource base to support customer needs:  Over R$ 330 million in R&D assets PP  More than 190 researchers Coffee Bags  8 pilot plants  More than 400 patents filed worldwide  Partnership with universities and R&D centers in Brazil and abroad  12% of Polymer Business Unit revenues results from new products launched in the past 3 years PE Rotomolded Manhole PE Innovation pipeline BIOPOLYMERS PP NPV: ~US$ 510 million PVC PVC Doors 11
  • 12. Innovation & Technology PP - NEW PP WASHING MACHINES PP - LOW VOC AUTOMOTIVE GRADE Partners: Electrolux and Colormaq Partner: Lyondell-Basell Brazil Innovation: Steel and PET replacement in Innovation: High performance grade for washing machine body part (lower cost and automotive compounds. weight) Target Sales: 4 kton/year Target Sales: 6 kton/year PE - LARGE ROTOMOLDED WATER TANKS PE - GRAIN BAGS Partner: Fortlev Partner: Pacifil Innovation: Fiberglass tank replacement Innovation: Lower cost and faster installation Target Sales: 32 kton/year with flexible silos for grain storage Target Sales: 5 kton/year PVC - PVC WINDOWS PVC - PVC ROOF TILES (To be launched) PP Partners: Claris, Primeira Linha, Veka and Partners: Not disclosed now due to secrecy Weiku agreement Innovation: Increase PVC window profile Innovation: Asbestos and Clay roof tiles application in the market replacement Target Sales: 2 kton/year Target Sales: 120 kton/year 12
  • 13. Synergies from Quattor acquisition totaling R$377 million in EBITDA for 2011 2011 EBITDA*: R$377 million 2012 EBITDA*: R$495 million R$ milhões R$ million R$ million R$ milhões 61 59 87 82 377 495 350 234 Industrial Industrial Logistics Logística Supply Suprimentos EBITDA Synergies EBITDA Sinergias Industrial Industrial Logistics Logística Supply Suprimentos EBITDA Synergies EBITDA Sinergias Identification of new opportunities, efficient and rapid implementation of initiatives to capture synergies  Integrated planning for industrial units Additional R$490 million in NPV  Centralized maintenance strategy of synergies that do not affect EBITDA – financial, fiscal, etc  Optimization of freight and gains in distribution and storage  Joint purchase of materials for industrial operations Source: Braskem * Annual and Recurring 13
  • 14. Outlook on the global petrochemical industry Ethylene: Operating rate 2010 MM ton Industry in 2010 20 94  Operating rates decreased in 4Q10 driven by the 91 90 89 88 rigorous winter in the Northern hemisphere and 86 84 * 15 84 82 83 operational problems in Europe and Middle East 81 80 78 74  Competitive cost base allowed the US to 10 70 operate at higher rates than other regions throughout 2010 5 60  Global operating rate at 83.5% in 2010, 3.1 p.p. over previous forecast 0 50 Europe N. America Asia M. East World Braskem  Demand grew by 6.7%, or 7.4 million ton. More than 50% higher than previous forecast Capacity 4Q Operating rate 4Q10 (%) Operating rate 3Q10 (%) Global Scenario  New capacity additions can lead to the closing Ethylene: Supply and Demand Balance down of non competitive assets, especially in MM ton Europe and Asia (Japan) 200 90.7 91.3 86.3 88.7  No significant expected change in ME 150 83.5 83.9 operating rate – structural problems in Iranian plants 100  High volatility in oil prices boosts naphtha prices. Prices of resins and basic petrochemicals 50 follow this trend 0  Expectation of improvement in the industry 2010 2011e 2012e 2013e 2014e 2015e profitability as of 2H11 Capacity Demand Operating Rate (%) Source: CMAI, Parpinelli Tecnon * Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days. 14
  • 15. Demand growth shall overcome new capacity additions Ethylene Demand 6.8% 6.7% Capacity 6.7% 5.2% 4.5% 4.4% 4.3% CAGR 10-15 (MM ton) 3.4% 4.4% 8.4% 5.2% 4.5% 4.4% 4.3% 4.0% 3.4% 6,521 3.2% 2.3% 2.6% Supply 3.3% 2.1% 2.6% 2.3% 2.5% 6,090 Asia 4,514 2.1% CAGR 10-15 Africa 6,521 9,010 2,805 6,090 2.8% Asia Middle East 2010 2011 2012 2013 3,216 3,423 2014 2015 4,514 3,814 3,229 400 3,417 Africa Europe 9,010 2,805 Middle East 2010 2011 2,652 2012 3,423 2013 2,545 2014 2015 Americas 468 3,216 1,816 3,814 2,462 3,229 3,774 400 3,417 Europe Closures 2,067 529 Demand Growth % 490 1,200 Supply Growth % 962 550 743 2,652 2,545 375 Americas Postponed/Delayed 468 1,816 (699) (150) 2,462 (1,282) (1,227) 3,774 Closures 2,067 529 1,200 490 Supply Growth % 743 962 550 375 Postponed/Delayed (1,282) (699) (150) Demand Growth % 2010 (1,227) 2011 2012 2013 2014 2015 -19% Delayed 2010 2011 2012 2013 2014 2015 -19% Delayed  Limited additional capacity until 2015  No new investments announced motivated by financial crisis  Sanctions in Qatar restrict investments in petrochemicals  No further availability of cheap gas for new projects in Middle East  Greenfield projects: 5-6 years to startup Source: CMAI, March/2011 15
  • 16. World indicative ethylene cash costs Source: CMAI 16
  • 17. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 17
  • 18. Strategic Vision “BECOME THE GLOBAL SUSTAINABLE CHEMICAL LEADER, INNOVATING FOR BETTER SERVE THE PEOPLE”. 18
  • 19. 3 Main growth/value drivers Brazil The country will need a new thermoplastic plant per year until 2020 Gas supply from pre-salt exploration can bring competitiveness to the new projects in Brazil Internationalization Latin America and US as good alternatives for future competitive feedstock supply Partnerships with local players to develop local industry at competitive gas prices Sustainable Chemicals Initial focus in renewable raw materials with no changes for customers in terms of investments and applications Partnerships to enter other avenues in green products 19
  • 20. Brazil – adding value to the Vinyls chain PVC Expansion Operational start-up : May 2012 Expansion of 200 kton/y in PVC capacity in Alagoas, using EDC (1st intermediate product in the PVC chain) currently exported Investments of ~R$850 million Expected NPV ~US$450 million Long term financing from BNDES (up to R$525 million) and from BNB (R$200 million) at very competitive costs Expected disbursement of R$380 million in 2011 Support for Brazil’s infrastructure projects Brazil currently imports ~30% of its needs PVC Domestic Demand (kton) 1,119 982 950 857 31% 748 34% 26% 19% 17% Imports New Projects Domestic Sales Industrial Assets 2006 2007 2008 2009 2010 Source: Braskem 20
  • 21. Brazil – adding value to the cracker chain Polybutadiene SBR SSBR NBR TR Styrene Butadiene Rubber Solution SBR Acrylonitrile Butadiene Thermoplastic Rubber Butadiene Rubber Operational start-up : 2013 Capacity: 100 kton/y Location: Triunfo (Rio Grande do Sul) Investments of R$300 million Raw material for the manufacture of rubber tires and synthetic rubbers Attractiveness worldwide Tighter market balance sustaining higher prices  Light feedstock expansion limiting the New Projects availability of C4 supply Industrial Assets Continuous consumption growth  Higher demand from emerging markets  Recovery of the mature markets Source: Braskem 21
  • 22. Brazil – potential capacity expansion projects 2013 - 2015 2016 - 2018  ~ 130 kton/y through DBNs adding LDPE, HDPE and PE LLDPE in Bahia, Rio de Janeiro and São Paulo (southeast of Brazil)  ~ 100kton/y through DBNs in  COMPERJ – from 1.1 to 1.5 Rio Grande do Sul (south of million tons of ethylene Brazil) and São Paulo PP (southeast of Brazil) or 300 kton/y trhrough a Greenfield in Bahia (northeast of Brazil)  Greenfield adding ~250 PVC kton/y in the northeast of Brazil 22
  • 23. Sustainable Chemicals Development Green PP Green PE 2013 Partnerships for the 2010 – started development of competitive Innovation in bioplastic technologies up in 4Q10 market Successful track record for Production integrated with Braskem becomes implementing projects: green propylene Cooperation agreement with a global leader in term and costs Capture of 2.3t CO2/t PP Cenpes (Petrobras Research biopolymers Center) Capture of 2.5t CO2/t PE Partnership with Development of other cracks Customers streams to sustainable chemicals PE integrated project study 23
  • 24. Access to competitive feedstock The Ethylene XXI Project (Mexico) Mexico: Ethylene XXI Project Operational start-up: January 2015 JV between Braskem (65%) and the Mexican group IDESA (35%) for the purchase of ethane from PEMEX Integrated project: 1 Mton/y of ethylene and 1 Mton/y of PE Fixed Investment: US$ 2.5 billion over 5 years (project finance – 70% debt/30% equity) Expected NPV over US$ 3 billion Strategic partnership with Ineos and Lyondell Basell for PE plants technologies and with Technip for the cracker Financial Advisor hired: Sumitomo Bank Structuring of the participation of ECAs and MLAs1 – already received over US$ 6 billion in letters of interest 1 Export Credit Agency (ECA) and Multilateral Agency (MLA) Source: Braskem 24
  • 25. Mexican Polyethylene Market Currently deficit above 1.1 Mton (2010) - ~70% of the market – being supplied by US players Estimated deficit in 2015 (project start-up): 1.7 Mton Annual Growing rate foreseen: 4.5 % (Period: 2010-2025) Polyethylene Mexican Market 4,0 3,5 3,0 1,6 1,7 MMton/year 2,5 1,3 1,4 1,5 1,0 1,1 1,2 0,7 0,8 0,9 2,0 1,5 1,4 1,5 1,1 1,3 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,2 1,1 1,0 1,1 1,0 1,1 1,1 1,1 0,5 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,8 0,5 0,5 0,6 0,7 0,7 0,8 0,8 0,4 0,5 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Supply Ethylene XXI Deficit 25
  • 26. Mexican Converters Industry 3,500 plastics converters  84% small and micro companies  More than 5 Mton of plastics conversion, with 1.8 Mton of Polyethylene  Main application: Packaging (48% market) Sales to distributors: Braskem ≠ Pemex Converters Profile Big 4% Medium 12% Micros Small 60% 24% Total: 3,500 Converters 26
  • 27. Unique pipeline of growth in the Americas Consolidated Project Pipeline  Brownfield/Greenfield expansion projects in Brazil: PE and PP assets  Comperj – integrated complex in Rio  Ethylene XXI - Mexico de Janeiro (southeast Brazil) (+ 1,000 kton/y ethylene  New Biopolymers Plants in Brazil – and + 1,000 kton/y PE) integrated project (1st and 2nd  Green PE – already  Butadiene (100 kton/y) generation) operational (+ 200 kton/y ethylene)  Green PP  Peru(+ 600 to 1,000 kton/y (+ 30 kton/y ethylene/ ethylene/PE)  PVC Expansion propylene) (+ 200 kton/y)  Venezuela – under revaluation 2010 - 2012 2013 - 2015 Projects under evaluation  Resin Capacity CAGR for 2010-2015: +4.3% p.y.  Diversification of raw materials and world-class assets  Fiscal discipline  Excellent track record of projects execution Source: Braskem 27
  • 28. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 28
  • 29. Basic Petrochemicals priorities Operational excellence, as well as in HSE and cost competitiveness Maximize the capture of synergies from the integration process of Quattor’s Basic Chemicals business Ensure energy efficiency and competitive sources Redesign of the petrochemical complexes (chains and infrastructure), identifying opportunities to add value to available chains Detail the investment plan for meeting future domestic demand of basic petrochemicals Prepare and implement a plan to capture synergies from Petrobras refineries Identify business opportunities related to Pre-Salt, from existing product portfolio 29
  • 30. Polymers priorities Operational excellence, as well as in HSE and cost competitiveness Maximize synergies capture from the integration process of Quattor PE and PP businesses New product portfolio, reducing industrial and supply chain complexity with less SKU´s Continuous effort of Braskem with its customers to create value through innovation and cost efficiency, bringing new solutions to the people Plastics uses and advantages promotion Detail the investment plan for meeting the Brazilian demand for PE, PP and Vinyls Identify business opportunities related to Pre-Salt, from existing product portfolio 30
  • 31. International business priorities Conclude basic engineering (FEL 3) and project finance in order to obtain FID (final investment decision) for the Mexico Project in 2011 Identify and implement synergies opportunities from operations in USA and Mexico Advance in the integration and operational improvement process of the PP business in the USA Assess potential acquisition of assets in the USA, aimed at increasing Braskem’s market share and value creation (“smart buy”) Analyze opportunities related to shale gas availability Expand Braskem’s leadership in Sustainable Chemistry Ensure participation in potential projected in Peru, Venezuela and Bolivia 31
  • 32. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 32
  • 33. Main numbers for 2010 x 2009 Net Revenue (R$ million) Net Revenue (US$ million) Net Income (R$ million) +23% +36% +375% 27.829 1,889 15.833 22.647 11.620 398 2009 2010 2009 2010 2009 2010 Exports 23% 26% 23% 26% EBITDA (R$ million) EBITDA (US$ million) Dividends (R$ million) * +27% +139% +41% 4.055 666 2.308 3.181 1.638 278 2009 2010 2009 2010 2007 2010 % of Net 51% 40% Income * 2007: Last dividend distribution 33
  • 34. Capacity utilization rates were positively impacted by the improvement of Quattor’s assets Braskem consolidated operating rates % Quattor - Ethylene Ethylene Polyethylene Polypropylene PVC 89% 94% 94% 93% 83% 86% 87% 83% 85% 71% 78% 80% 63% 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010 2009 2010 2009 2010 2009 2010  Raw material supply regularization, in the Southeast and Rio de Janeiro complex, gradually increased the operating rates of Quattor’s assets:  RJ unit presented a record rate of 93% in the last quarter of the year  Continuous operational improvement of existing assets (record production rates in the south complex)  Scheduled maintenance shutdown at Bahia’s cracker in the 4Q10 had a higher influence in the PVC production, partially impacting the average operating rate of PE and PP Source: Braskem *2009 data does not include Quattor expansion of 200 kton 34
  • 35. Value added products and potential market growth are key differentiators of value creation  Braskem’s Performance – 2009 Vs. 2010 (Thousand tons) Braskem  Origin of Imports in 2010 (PE, PP and PVC) +11% 3,413 3,072 Others 2009 2010 14% Europe 10% North America  Braskem’s Sales Profile – 2010 Asia 29% 10% OTHERS Mexico Colombia Argentina 1% 15% AGRIBUSINESS 21% 10% INDUSTRIAL 4% FOOD 29% PACKAGING 4% AUTOMOTIVE 6% RETAIL 7% Americas account for 67% of imports 9% 18%  Imports represented 26% of the HYGIENE AND 13% domestic market CLEANING CONSTRUCTION CONSUMER GOODS Source: Abiquim, Braskem 35
  • 36. Value creation through acquisitions Quattor’s EBITDA Performance (R$ million) +19% 361 +41% 302 984 214 +78% +99% 554 107 1Q10 2Q10 3Q10 4Q10 2009 2010 Braskem America’s EBITDA Performance (US$ million) 37 114 -30% +73% 32 26* 22 23 66 2009 2010 1Q10 2Q10 3Q10 4Q10 *Excluding the non-recurring positive ajustment in the inventory booking criteria of R$ 10 MM. 36
  • 37. Indebtedness and leverage decrease Dec 2009 Dec 2010 Gross Debt: R$ 17,637 MM -28% Gross Debt: R$ 12,728 MM Net Debt: R$ 11,417 MM -14% Net Debt: R$ 9,839 MM EBITDA: R$ 3,181 MM EBITDA: R$ 4,055 MM LEVERAGE Average Debt Term: 6.6 years Average Debt Term: 12.5 years Gross Debt/EBITDA: 5.54x Gross Debt/EBITDA: 3.14x Net Debt/EBITDA: 3.59x -32% Net Debt/EBITDA: 2.43x Change Million of R$ 2010 2009 (%) Net Financial Result -1.618 266 - Foreign Exchange Variation (FX) 405 2.782 -85% Monetary Variation (MV) -355 -511 -31% Net Financial Result Excluding FX and MV -1.668 -2.005 -17% Non-recurring Financial Expenses: R$464 million in 2010 Source: Braskem 37
  • 38. Debt reduction and lengthening the average maturity of debt DEBT PROFILE Amortization Schedule(1) 2010 (million of R$) Foreing 12/31/2010 Entities 1% Gov. Entities Capital 26% 583* Market 20% 38% 393 13% 14% 13% 10% 11% 10% 2,594 2,889 1,733 1,820 8% 2,496 1,694 1,360 1,245 1,073 1,244 Banks 35% 2009 Foreing 12/31/10 2011 2012 2013 2014 2015 2016/ 2018/ 2020 Entities Cash 2017 2019 onwards 5% (1) Does not include transaction costs Invested in R$ Capital *US$350 million of Stand by Gov. Invested in US$ Market Entities 21% 22% Issue of US$450 million in perpetual bonds, project finance prepayment and others financing operations lengthened the average debt term to 12.5 years Corporate Credit Rating – Global Scale Agency Rating Outlook Reviewed in Banks S&P BBB- Stable 03/30/2011 52% Moody’s Baa3 Stable 03/31/2011  More balanced source of funds. Fitch Ratings BB+ Positive 01/11/2011 38
  • 39. Total Investment in 2011 is estimated at R$1.6 billion Investments Investimentos (R$ million R$ milhões) 1,777 1,644 373 Maintenance Shutdown 391 HSE For 2011, capex is estimated at R$ 127 85 142 Productivity 1.6 billion, out of which 211 94 Capacity Increase / PVC Alagoas approximately 30% destined to 283 407 Equipment Replacement capacity expansion projects, 20% to 6 Quantiq scheduled maintenance shutdowns, 343 243 Green PE and the remaining to operational 47 89 Mexico investments. 301 278 Others 2010 2011e Source: Braskem 39
  • 40. Agenda  Braskem  A global player in the petrochemical industry  Vision and Growth pipeline  Main goals and priorities by business segment  Recent financial performance  Final considerations 40
  • 41. Outlook and Priorities Petrochemical market Political instability in Arab countries and oil price volatility Global petrochemical scenario continues to be marked by recovery, but oversupply is still expected for 2011. Mitigating factors:  Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran  Strong demand from emerging countries like China, India and Brazil Braskem priorities Strengthening of the Brazilian petrochemical and plastics production chain Guarantee, through an investment plan, the supply to the Brazilian future market growth: ~2x GDP Ensure capture of identified synergies Add value through the acquired assets  Quattor: continue improvement in its operational efficiency  Braskem America: return above capital employed Ensure domestic competitive feedstock for both current assets and new capacities, strengthening the Brazilian petrochemical industry; Maintain the capital structure health, making viable the execution of the investment plan while maintaining the investment grade; Develop partnerships required for the Company’s growth; Ensure that Braskem follows its growth course towards a stronger and more competitive position in the global industry 41
  • 42. Braskem Day Carlos Fadigas CEO April 19, 2011