2. Forward-looking Statements
This presentation contains forward-looking statements. These statements do
not represent historical fact, but rather reflect the beliefs and expectations
of Braskem’s management. The words “anticipate”, “wish”, “expect”,
“estimate”, “intend”, “forecast”, “plan”, “predict”, “project”, “target” and
similar words are intended to identify these statements. Although Braskem
believes that the expectations and assumptions reflected in these forward-
looking statements are reasonable and based on information currently
available to management, Braskem cannot guarantee future results or events.
The forward-looking statements included in this presentation are valid only
on the date on which they are made (June 30, 2008), and the Company does
not undertake 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. Highlights 2Q08
Operating Performance :
Brazilian resin market grows 11% on 2Q08 x 2Q07
Braskem’s resin sales in the domestic market grow 17%, with market
share of 53%
Maintenance stoppage in Braskem’s 2 crackers:
Increase of 25 kton/year in Triunfo’s ethylene capacity
Naphtha ARA increases 48% on 2Q08 X 2Q07 and 50% on 1H08.
Impact on costs reaches R$ 601 million in 1H08
Net income reaches R$ 383 million, positively impacted by the
Brazilian Real appreciation
3
4. Highlights 2Q08
Strategic Steps:
Acquisition of the petrochemical assets of Ipiranga Group approved by CADE
Braskem owns 100% of the total capital of Ipiranga Petroquímica and
Paulínia, and 99.2% of Copesul
With the incorporation of Petrobras’ stake in these companies, Petrobras
increased its stake in Braskem from 6.8% to 23.1% of the total capital
Green Polymer:
Location – Triunfo
Investment - R$ 450 million to R$ 500 million
MOU signed between Braskem, Petrobras and Petroperu
4
5. PP and PVC high production levels in a
quarter with maintenance stoppages
Utilization Rate %
ETHYLENE PE PP PVC
104%
97% 102%
96% 95% 96%
92%
89% 89% 88%
86%
74% 73%
2Q07 1Q08 2Q08 2Q07 1Q08 2Q08 2Q07 1Q08 2Q08 2Q07 1Q08 2Q08
Resin Production Kton
2,807 35 days of maintenance
2,744
707 704
stoppage in its two
624 crackers
-2%
-11%
14 days of maintenance
stoppage in the PE
LTM LTM 2Q07 1Q08 2Q08
plants
2Q07 2Q08
5
Source: Braskem
6. Braskem strengthens leadership position
in robust domestic market: Demand +11%
Domestic Sales 2Q08 x 2Q07 % Resin Market Share 2Q08
+ 18 %
+ 17% +17%
Others
+13%
+11%
26%
53%*
21%
Imports
Resin Brazilian
PE PP PVC
Braskem market *
* Braskem market-share includes sales of
PVC imported by the Company
*Domestic sales + Imports
Source: Braskem / Abiquim
6
7. EBITDA Evolution
Commercial strategy minimizes impact from Naphtha
prices increases and foreign exchange rate appreciation
67
1,266 FX impact
763 on costs
R$ million
(1,089) FX impact
on revenue
921 (1,179)
519
(326) (126)
(104)
2Q07 Prices Fixed Raw Foreign Volume Non-recurring 2Q08
Costs/ Materials Exchange gains PIS/
SG&A Cofins 2Q07
Source: Braskem 7
8. EBITDA Evolution
Increase in basic petrochemical prices and higher volumes in
domestic market minimizes impacts from higher raw materials costs
costs
FX impact
R$ million
185 on costs
FX impact
(246) on revenue
79
166 (136)
583
(193) (136)
519
(61) (39)
(16)
1Q08 Prices Volume Raw Foreign Fixed Other 2Q08
Materials Exchange Costs/
SG&A
Source: Braskem 8
9. Main Economic Performance Indicators
R$ million
Main Economic 2Q08 1Q08 2Q07 Chg. % Chg. % 1H08 1H07 Chg. %
Indicators (A) (B) ( C) (A)/(B) (A)/( C) (D) (E) (D)/(E)
Net Revenue 4,405 4,410 4,969 0 (11) 8,816 9,393 (6)
EBITDA 519 583 921 (11) (44) 1,102 1,774 (38)
Ebitda Margin 11.8% 13.2% 18.5% -1.4 p.p. -6.7 p.p. 12.5% 18.9% -6.4 p.p.
Net Financial Result 407 (200) (59) - - 206 (163) -
Net Income Before
384 120 420 220 (8) 504 695 (28)
Minority Interest
Net Income 383 83 281 362 36 465 408 14
Source: Braskem
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10. Lengthening of debt profile
is a priority
TJLP
CDI
14%
13%
in million of R$ (06/30/08) Fixed 3%
Bridge Loan Net Debt / Ebitda (x)
13%
Gross Debt:
Debt: 8,799
2.78
Net Debt:
Debt: 6,968 2.56
US$ Trade
35% Finance +9%
Average Term: 10.5 years
Term: 22%
US$ 70%
Mar08 Jun08
25%
Cash and equivalents
1,831
990
15%
1,134 11% 11% 11%
10%
145
6% 1,357 6%
5%
1,196 936
838 947 933
697 493 557
407
06/30/08 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpetuals
2013 2015 2017 2020
In R$
In US$ Includes R$ 1.1 billion from the bridge loan related to the acquistion of the petrochemical assets of the
Ipiranga Group
Source: Braskem 10
11. 2008 Outlook
Emerging markets support the world’s growth, despite slowdown
in the US economy
High resin prices pressured by high raw materials costs
Robust demand in the domestic resin market
Improved productivity and industrial performance
Acceleration of synergy gains and costs reduction
Incorporation of the petrochemical assets of the Ipiranga Group
Venezuela
Conclusion of the economic and feasibility studies will allow
investment decision on PP plant
11
