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 in this presentation are valid only on the date
they are made (December 31, 2008) 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. 4Q08 Highlights
• Unprecedent financial crisis
• High volatility in the exchange rate, raw materials and resins prices
Market:
Drop-off in international thermoplastic resin demand
Destocking in the petrochemical chain due to credit restriction
Impact in Brazil concentrated in agriculture and durable goods in 4Q08
Brazil's thermoplastic resin market contracted by 16% in 4Q08
Operating Performance:
Reduction in the plants capacity utilization rates starting in November
Net revenue of R$ 4.1 billion in 4Q08, 18% lower than in 3Q08
EBITDA of R$ 633 million with an EBITDA margin of 15.4%, positively impacted by
the effects from the adjustments introduced by law 11,638/07 in the amount of R$
74 million, not related to the period
3
4. 4Q08 Highlights
Real Depreciation:
R$1.9 billion accounting impact on net liabilities pegged to the US dollar
Increase in the producers competitiveness
Reduction of resin imports in December
Strategic Actions:
Approval for the construction of the green PE plant and obtainment of the
environmental license to build the facility. Agreement with Toyota Tsusho to sell
Green PE in Asia.
Focusing on the cash position
4
5. Destocking trend in the petrochemical chain
limits growth in domestic market to 3% in 2008
Domestic Sales 2008 x 2007 % Resin Market Share 2008
+ 7% +7%
Others
26%
+3%
+2%
51%*
- 3%
23%
Imports
Braskem Brazilian
PP PVC
PE Resins Market*
* Braskem market share includes sales of
*Domestic Sale + Imports
PVC imported by the Company
Source: Braskem / Abiquim
5
6. EBITDA
Lower resins prices and reduced volumes overcome
the positive FX impact on revenues
FX impact
R$ million 1,487 on revenue
426 9 FX impact
(949) on costs
538
683
(848) 633
(174)
3Q08 Exchange Raw Fixed Costs/
Price Volume 4Q08
Rate Materials Others
Source: Braskem 6
7. Financial Results reflect FX
variation
R$ million 4Q08 3Q08 4Q07 2008 2007
Financial Result (2,275) (1,616) (137) (3,685) (367)
Expenses (2,731) (1,923) 329 (4,403) 211
Income 456 308 (466) 719 (578)
FX Variation (1,872) (1,351) 146 (2,629) 798
Loss (2,290) (1,618) 675 (3,173) 1,607
Gain 418 267 (528) 544 (809)
FX Rate - EOP 2.34 1.91 1.77 2.34 1.77
FX Variation 22.1% 20.3% -3.7% 31.9% -17.2%
Source: Braskem 7
8. Short-term debt well managed and long-
term debt well distributed with an
average term of 11 years
R$ million (12/31/08)
Gross Debt: 11,986 Net Debt / Ebitda (x) R$ Net Debt / Ebitda (x) US$
Net Debt: 9,028
Average Term: 10.9 years 3.73 3.06
3.42 2.89
74% of the debt are pegged to the USD 9% - 6%
Cash and Equivalents
2,960 Sep08 Dec08 Sep08 Dec08
18%
738 13%
1,901
12%
11% 11% 11%
10%
1,408 8%
6%
1,642
1,368 1,259 1,402 1,345
1,059 942 1,169
713
12/31/08 2009 2010 2011 2012 2013 2014 / 2016 / 2018 / 2020 onwards
2015 2017 2019
In R$
In US$ Value related to the loan granted by a Petrobras subsidiary for the delisting of Copesul, due in October 2009
Source: Braskem 8
9. Net debt increases by US$500 million on
investments of US$1.3 billion
US$ million
175
355 337 3,864
3,350 1,297
(1,325)
2,230
(271)
(54)
Working PPSA
Net Debt Interest Dividends Ebitda FX / MV Net Debt Investments Net Debt
Capital Consolidation
Dec07 Dec08 disbursements Dec08
Source: Braskem
9
10. Focus on priority investment projects
R$ million
2,279
Investments in Equity Stake
885
(Ipiranga Group/Politeno)
Capacity increases / 909
195 Petroquímica Paulínia
238 Equipment Replacement Capacity increases / Green PE
172
161 HSE
213 Equipment Replacement
91 Technology
Productivity HSE
202 203
Technology
14
Maintenance 74 Productivity
407
182 Maintenance
55 Information System Information System
45 Quality / Others 14
37 Quality / Others
2008 2009
Source: Braskem
10
11. Short-term priorities
Focus on financial strength and liquidity
Acceleration of the capture of synergies from the IPQ/CPS
acquisition
Focus on maintaining operational profitability
Recovery of plants capacity utilization rates
Naphtha: conclusion of the new contract with Petrobras
Green PE Project: construction in progress
Assessment of growth opportunities during the crisis
Greater operational and financial strength
11
