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CS LatAm Equity
Conference 2010
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 by 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 (September 30, 2009) 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
Agenda



         Strategic direction


         Quattor acquisition


         Braskem post transaction


         Key differentiators


         The petrochemical industry
Strategic direction
 Vision 2020 Braskem



                       Leader in the Americas, rank
                          among the 5 largest
                       petrochemical companies
                       worldwide measures by EV*
                       and to be positioned as the
                       preferred partner for global
                                alliances




Source: Braskem                   * Enterprise Value   4
Strategic drivers

                        Quattor acquisition strongly aligned to
                        the strategic drivers of the Company


                                      Feedstock and energy
                                          availability at
                                        competitive costs



                  Defense of business in
                                                        Business differentiation
                      Latin America



                       International expansion        Diversification of
                         in attractive markets     products and business




Source: Braskem                                                                    5
Agenda



         Strategic direction


         Quattor acquisition


         Braskem post transaction


         Key differentiators


         The petrochemical industry
Braskem overview


    Key Financials 2009 LTM*:

    Net Revenue        R$ 15.3 billion          Ethylene and resins capacity (kton/y)

    EBITDA             R$ 2.4 billion                           6,127

    Net Result         R$ (328) million                           510

    * Last 12 months
                                                                 1,090


     Profile:
                                                                            PVC
                                                                 1,995
    17 petrochemical plants with 1st and 2nd                                PP
    generations integrated: states of BA, RS,
    AL, SP (non integrated)                                                 PE

                                                                            Ethylene
    Listed in 3 stock exchanges:
    BM&FBovespa, NYSE and Latibex                                2,532




Source: Braskem                                                                         7
Quattor overview


    Key Financials 2009 LTM*:

    Net Revenue                   R$ 4.1 billion
                                                     Ethylene and resins capacity (kton/y)
    EBITDA                        R$ 462 million
                                                                    3,155
    Net Result                    R$ (256) million
    * Last 12 months
                                                                      875


     Profile:
                                                                                PP
                                                                     1,040      PE
     9 petrochemical plants with 1st and 2nd
     generations partially integrated: states of                                Ethylene
     SP, RJ
     Private company
                                                                     1,240




Source: Braskem / Company estimates / Quattor                                                8
Geographic Complementarities

                                                                     Complementation and
                                                                   geographic diversification

                                                                     Country region with the highest
                                                                     availability of feedstock
                                                                     Quattor assets are located in
                                                    Maceió
                                                                     the SE region;
                                                Marechal Deodoro
                                                                     The southeast region has the
                                            Camaçari                 largest thermoplastic resins
                                                                     domestic consumption;
                                                                     The privileged location of
                                                                     Quattor assets represents low
                                                                     logistics costs on the transport
                              Mauá     Duque de Caxias               of products to the final resin
                            Paulínia
                                                                     consumers.


                         Triunfo
  Industrial Footprint
  Greenfields
Benefits and strategic drivers

    Creation of a world scale player
    Diversification of feedstock supply
    Scale increase and geographic complementarities
    Strengthening of the production chain – petrochemicals and plastics
    Balanced capital structure
    Value creation for all shareholders



 Consolidation of Odebrecht and Petrobras shares in their activities in the
 petrochemical sector, strengthening Braskem and the Brazilian production
  chain to compete in the international market and ensuring the basis for
        global growth, consolidating the leadership in the Americas


                                                                              10
Transaction stages (1/2)

 1. Creation of BRK Investimentos Petroquímicos SA (BRK) holding Braskem’s common
    shares from Odebrecht (ODB) and Petroquisa (PTB), followed by a capital increase of
    R$ 3,5 billion, R$ 1 billion from ODB and R$ 2.5 billion from PTB



                        ODB         PTB      Aportes   ODB           PTB
                                             ODB/PTB
                          66,8%      33,2%                   53.8%    46.2%


                              BRK                              BRK



 2. Braskem capital increase through Private Offer between R$ 4.5 billion and R$ 5 billion,
    with a minimum subscription of R$ 3.5 billion assured by BRK. The Offer share price
    will be R$ 14.40 per share



 3. Braskem acquires Unipar 60% stake of Quattor Participações for R$ 647.3 million in
    addition to suceed Unipar in a liability with BNDESPAR




                                                                                              11
Transaction stages (2/2)

 4. Braskem merges Quattor shares, consolidating Petrobras/Petroquisa 40% interest in
    Braskem:

                                           Braskem

                                                100%
                                           Quattor
                                        Participações


                          94,11%                65,98%                99,3%

                     QQuímica               RioPol            QPetroquímica
  25,00% RioPol
                           5,89%                 9,02%
  permanecem com
  BNDESPar



 5. Braskem acquires 33.3% of Polibutenos and 100% of Unipar Comercial for R$ 52.7
    million


 These steps of the transaction are expected to be concluded in 120 days


                                                                                        12
Assets to be acquired


                                                               40.0%

       Direct Subsidiaries

              50.0%               33.3%       60.0%                       100.0%



                                              Participações




                                                      Divisão Qu




                             94.11%                   65.98%             99.30%


                                Química                            Petroquímica
                                                                          ímica
                                      5.89%           9.02%

25.00% of RioPol
remains with
BNDESPar
                                                                                   Source: Quattor   13
Agenda



         Strategic direction


         Quattor acquisition


         Braskem post transaction


         Key differentiators


         The petrochemical industry
Braskem post transaction

    Key Financials (2009 LTM* ProForma):

    Gross Revenue                 R$ 25.8 billion   Resins capacity (kton/y)
    Net Revenue                   R$ 19.4 billion
                                                              5,510
    EBITDA                        R$ 2.9 billion
    Total Assets                  R$ 33.5 billion              510
     *LTM: oct/08 to sep/09


                                                              1,965
                                                                          PVC
     Profile:
                                                                          PP
     26 petrochemical plants with 1st and 2nd
     generations integration: States of BA, RS,                           PE
     AL, SP, RJ
     Listed in 3 stock exchanges:                             3,035
     BM&FBovespa, NYSE and Latibex




Source: Braskem / Company estimates                                             15
Assets location overview

                                                                  PVC
                                                                  Chlorine - Soda


                                                                                    Naphtha cracker
                                                                                    PE
                                                                                    PVC
     26 Plants in 5 states                                                          Chlorine – Soda
             - 17 Braskem plants                                                    PP
             - 9 Quattor plants
                                                      AL
                                                                                Gas (ethane and
                                                                              propane) cracker
                                                     BA                             PE
                                                                                    PP
                                                                                              QUATTOR ASSETS
                        PROXIMITY OF THE
                        CONSUMER MARKET                                        Naphtha and LRH
                                                                            cracker
                                                                               PE
                                           RJ                                  PP
                                 SP                                            PVC

                                                Naphtha cracker
                                                Green Ethylene
                                                PE
                      RS
                                                PP
                                                                                                               16
Quattor acquisition places Braskem as #1
 resins producer in the Americas...
                           Production capacity of resins in the Americas, kton/y
                                                                                                           2009 basis


           1st
         5,510
                     5,307
                                  4,827
          510
                      1,230
                                              4,256        4th
                                   627
                                                           3,595
         1,965
                                                                   3,082
                                              1,731        510
                                                                              2,340     2,311
                                                           1,090   1,210                           1,915
                      4,077
                                  4,200
                                                                                                               PVC
         3,035                                                      822                             875
                                              2,525                           2,340     2,311                  PP
                                                           1,995
                                                                   1,050                           1,040       PE


    Braskem    Exxon           Dow        Lyondell      Braskem Formosa    Shintech Chevron     Quattor
      post     Mobil                       Basell                                    Philips
   transaction




Source: Braskem / CMAI / Barclays / Parpinelli Tecnon                                                                   17
... and in the global ranking, one of the
  Top 10 in resins
                           Production capacity of resins (PE, PP, PVC) worldwide, kton/y
                                                                                                                                        2009 basis
    10,914
               9,311
                          8,668
                                    7,749     7,284      7,109
                                                                    6,541                                                  12th
                                                                               4,681       4,564         4,303     4,079
                                                                                                                           3,595          19th
                                                                                                                                          1,915




  Lyondell    Exxon    SINOPEC    Dow       Formosa     SABIC    Ineos        Total       IPIC      Reliance PetroChina Braskem         Quattor
   Basell     Mobil
                        10,914
                                    9,311
                                                8,668
                                                            7,749     7,284           7,109
                                                                                                                  8th                Braskem
                                                                                                  6,541
                                                                                                                 5,510
                                                                                                                                       post
                                                                                                                                   transaction


                      Lyondell    Exxon      SINOPEC      Dow       Formosa       SABIC          Ineos      Braskem
                       Basell     Mobil                                                                       post
                                                                                                           transaction


Source: Braskem / CMAI / Barclays / Parpinelli Tecnon                                                                                                18
Diversity and competitiveness of
feedstock to compete globally
   Feedstock profile (2009*)                                   Refinery Propylene
                                                                 USGC international reference with competitive
                                                                 prices
                             8%                      11%         Petrobras as main supplier
          37%                                        13%

                                                               Naphtha/Condensate
          17%                                                    72% of Petrobras naphtha supplied at
                             92%                                 competitive pricing formula
                                                     76%
           46%                                                   28% of purchases via imports


                                                               Gas
                                                                 100% of Petrobras gas supplied with
    Quattor          Braskem                   Braskem           competitive prices in relation to international
                                            post transaction     references
   Liquid (2)    Propylene    Gas (1)

(1) Ethane, Propane and LRH
(2) Includes naphtha and condensate                            Ethanol



                             Matrix with a greater balance and diversification
                             Competitive gas pricing in relation to the international
                             reference
                                                                                                                   19
Concerns with Corporate Governance

   Braskem as a public company - Odebrecht as the controlling shareholder of the
   company

   Operational issues to be addressed by Braskem Executive Officers

   Sharing of strategic decisions (Board consensus), such as:

        Assets sales, acquisitions, investments etc

   Professional management - CEO chosen by Odebrecht and executive officers chosen by
   CEO, with Petrobras nominating 2 out of 8

   Preferred partner for investments in the industry, exclusive choice in Latin America –
   Peru, COMPERJ, Suape, etc.

   Board of Directors with 11 members, out of which 1 is not nominated by the
   controlling shareholders




                                                                                            20
Capital structure post transaction

   High liquidity, with availability around R$9 billion
   Capital structure with leverage (net debt/EBITDA) around 3x
   Opportunity to extend maturities and reduce the cost of debt through renegotiation
                                               Estimated Capital    Estimated Capital
                              ProForma
                                               Increase R$4.5bi -    Increase R$5bi -
                               Sep 09
                                                  Acquisitions         Acquisitions

  Availabilities                4,274                     8,074            8,574

  Gross Debt                   17,470                 17,470              17,470

  Net Debt                     13,197                     9,397            8,897

  Net Debt / EBITDA             4.55x                     3.24x            3.07x

  Shareholders’
                                7,270                 11,770              12,270
  equity


                                                                                        21
Braskem debt profile post transaction

         Short term cash balance of Braskem post transaction, without any capital injection, is
         enough to amortize debts maturing in 2009 and 2010
                                                 Consolidated Debt Profile (R$ million)                                      Consolidated Debt

                                                                No injection        R$4.5 bi injection

                                                                                                                               US$          R$
In R$ million                                Cash                   4,274                 8,774                                            47%
                                                                                                                               53%
             8,774
                                             Gross Debt             17,470               17,470
                                             Net Debt               13,197                8,697


                                      R$4.5 bi
                       R$3.5bi
                                     injection
                      injection

                                                                                                                          Average Term: 7.1 years
                                            3,200

                                                        2,518
            4,274     >     3,828
                                                                 2,288
                                            1,556
                      1,896        1,932
                                                        1,264
                                                                 1,086      1,416
                                    728
                      1,144                                                                                       1,140
                                                                             620       934                                           900
                                            1,644                                                 516    617
                                  1,204                 1,254    1,202                 601               123
                      752                                                    796                                             156
                                                                                                  447    494
                                                                                       333         69

       Cash and 2009              2010      2011        2012     2013       2014       2015       2016    2017     2018       2019 2020 + Perp.
      Equivalents
                                                          Braskem Debt (sep/09)          Quattor Debt (sep/09)*

* Braskem Estimates                                                                                                                                 22
Partnership in new projects



                  700 kton/y PTA                 Suape: integration of the
                  450 kton/y PET                 petrochemical Complex
All corporate     240 kton/y textiles polymers   businesses into the Company
and contractual                                  assets
instruments
shall be signed                                  Comperj: production and
                  860 kton/y PE
within 120                                       marketing of resins and basic
                  850 kton/y PP
days.                                            petrochemicals
                  500 kton/y PTA
                  600 kton/y PET
                                                 Maintaining financial solidity
                  700 kton/y PTX
                  608 kton/y Benzene
                  157 kton/y Butadiene



                                                                                  23
Growth combined with improved
 competitiveness
• Green PE:
     - 200 kton/y of green PE
     - Ethylene made from 100% renewable raw material, with sugarcane ethanol used as feedstock
     - Investments of R$ 488 million and startup expected for the end of 2010
     - Financing package with BNDES approved in May/09
     - 70% of the ethanol volume required on final contract negotiation

• Venezuela (JVs with Pequiven with equal ownership) – Under Review:
      •   Polipropileno del Sur (Propilsur)
      -   450 kton/y of PP
      -   Startup in 2013 and investments estimated at US$1.2 billion
      -   Front end engineering design (FEED) at its final stage, EPC contract negotiation and financing structure
          with the ECA´s and multilaterals in progress

      •   Polietilenos de America (Polimerica)
      -   1.3 Mton of ethylene and 1.1 Mton/y of PE
      -   Integrated project using the natural gas available in Venezuela as feedstock
      -   Startup in 2014 and investments estimated at US$3.25 billion
      -   Technology license agreements signed for the PE plants and 79% of the PE Project Design Packages
          (PDPs) concluded
Source: Braskem                                                                                                 24
Growth combined with improved
 competitiveness
 • Mexico:
     • Project Ethylene XXI
     - Partnership with the Mexican group IDESA for the acquisition of ethane from PEMEX to be
           used as feedstock for an integrated petrochemical project
       -   1 Mtons/y of ethylene and 1 Mtons/y of PE
       -   Investment initially estimated in up to US$ 2.5 billion over the course of 5 years, planned to be
           financed by a project finance model with 70% debt and 30% equity


 • PVC Alagoas:
     - 210 kton/y of PVC capacity expansion in Alagoas, Brazil
     - Investments around US$500 million and startup expected for the second half of 2012

  • Peru:
      - Braskem, Petrobras and PetroPerú concluded studies for the technical and economic pre-
           feasibility phase of an integrated project to produce 600 kton to 1.000 kton/y using the natural
           gas available in Peru as feedstock




Source: Braskem                                                                                               25
Agenda



         Strategic direction


         Quattor acquisition


         Braskem post transaction


         Key differentiators


         The petrochemical industry
Brazil: dynamic market with still
low per capita consumption
  • PE, PP and PVC per capita consumption
    (Kg per person)

                                                                                                              76

                                                                                                                     68


  Brazil:                                                                                                                   57

                                                    5.2%
                                                   CAGR*

                                                                                                   22.7
                                                                                            21.9
                                                                                     20.2
                                                         17.8          18.7   18.0
                                    16.2   16.6                 17.5
                             15.4                 16.1
                      14.5
       12.5    13.6
11.1




1994   1995    1996   1997   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008     USA Europe Japan
                                    PE            PP            PVC
                                                                                                                                   27
                                                                                                   * Compound annual growth rate    27
Source: CMAI
In Brazil, companies are exposed to a
dynamic market with resilient growth

  • Domestic demand for resins (Kton/y)


                                                                5.4%
                                                                CAGR
                                                                                               3%
                                                                                 10%
                                                                                                    4,172
                                                                9%                     4,048
                                                                          3,696
                                                                                        856         982
                                                3,435        3,377
                                                                           749
                                        2,880                692

                                                                                       1,228        1,218
                                                                          1,114
                                                             990




                                                                          1,833        1,964        1,972
                                                             1,695




                                        2001    2004         2005         2006         2007         2008

                                                        PE           PP           PVC

Source: Abiquim – domestic sales + imports                                                                  Source: NAD - CMAI   28
Applied Innovation and technology to
strengthen value chain competitiveness
 Structured resource base to support client
 needs
                                                      Focus on product and
                                                      application
    Over US$ 190 million in R&D assets                development
                                                       – 18% of resin sales
    > 170 researchers                                    derive from
                                                         products developed
                                                         in the last three
    8 pilot plants                                       years
                                                       – Focus on clients’
  > 240 patents filed                                    end users
 worldwide
                                                      Targeted initiatives for
                                                      breakthrough
   Partnership with universities and R&D centers in   technology
 Brazil and abroad                                     – Intelligent
                                                         packaging
                                                       – Renewables

                                                                            29
                                                                              29
Source: Braskem
Agenda



         Strategic direction


         Quattor acquisition


         Braskem post transaction


         Key differentiators


         The petrochemical industry
Petrochemical Cycle
  Good naphtha x resins spreads even with lower ethylene
  utilization rate

 Global ethylene supply-demand and operating rate (Mton/y, %)
                                                                                                           Points of concern
                                                         143              146              148              • Uncertainty regarding the extent of the
                                        140                                                                   global economic recovery
                      134                                                                     134
       130                                                                  127
                                                            120                                             • Incentives to sustain supply buildup
            111            112             115
                                                                                                91               – China: import substitution
                                                                                                                 – Middle East own agenda
                                                                                87                          • Stronger activity of capital investors in
             86                                                                                               the commodity market
                                                               84
                            83
                                              83
                                                                                                                     Supply & Demand
                                                                                                                         Balance
                                                                                                            Potential positive factors
        2008            2009             2010             2011             2012             2013
                                                                                                           • Frequent delays in new capacities
             Supply              Demand                  Utilization Rate CMAI - May/09
                                                                                                           • Operational and logistics problems
 Spread HDPE/Naphtha X Ethylene utilization rate (US$/ton, %)                                              • Increased economic importance of
                                                                                                             emerging countries with relevant
       91             91
                                                                                                             domestic consumption, as Brazil and
                             702         717
 751    750                                                                       688            694
                                                                                                             China
                                   84
                                                                                                       609 • Supply-demand geographical imbalance
                  638                                                562                  626
                                                    77         528                                            leads to logistics barriers
                                                                                                 79
                                                                     77              77                    • Opportunities from assets on sale
                                                   474
                                                                             • Limited utilization rates helps to balance
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09   the market
       Spread HDPE/Naphtha               Utilization rate            3Q09 Estimated utilization rate                                            Source: CMAI   31
12 million tons of ethylene capacity lost
in USA and Europe
 2009 expected utilization rate:
 Kton
45,000                                              88%
            82%
40,000                   77%
35,000                             67%                                • Lower global demand
30,000
25,000                                                                 growth and new
20,000
15,000                                                                 capacity additions
10,000
 5,000                                                                 expected to come on
     0
                                                                       stream limiting the
           North         Europe   Middle            Asia
          America                  East                                utilization rates of the
            Nameplate Capacity           Effective Production
                                                                       actual players
 New ethylene capacity additions globally (Mton):
                                                                      • New capacity additions
   12

   10
                                                                       could be delayed
    8

    6

    4
                                                           Delayed
    2
                                                           Go ahead
    0
         2009     2010     2011   2012       2013                       Source: Parpinelli Tecnon / CMAI / SRI   32
Major ethylene capacity additions in 2009:
  9.5 Mtons of nameplate capacity in Asia and Middle
  East, of which 4.5 Mtons effectively operating
                                                                    Effective capacity       Nameplate
           Country                    Company             Startup     in 2009 (Kton)       Capacity (Kton)
      Kuwait                 TKOC                          1Q09             850                 850
      Saudi Arabia           Petro-Rabigh                  2Q09             975                1,300
      Saudi Arabia           Yansab                        3Q09             867                1,300
      Qatar                  RLOC                          3Q09             325                1,300
      China                  Fujian Ref & Chem             3Q09             400                 800
      China                  Secco                         3Q09             150                 300
      Saudi Arabia           SHARQ                         4Q09             100                1,200
      China                  Dushanzi PC                   4Q09             417                1,000
      Thailand               PTT Polyethylene              4Q09             250                1,000
      China                  Panjin Ethylene               4Q09             113                 450
                                                                          4,447                9,500
                                                         10,340


                                                         3,832


                Total ethylene                                      5,773
                                                 5,130
                   capacity                       888
                                                         2,475      1,240

               additions (kton)                   202               1,450


                                                 4,040   4,033                   China
                                                                    3,083
                                                                                 Asia ex-China
                                                                                 Middle East

Source: CMAI / updated in Oct 30th.              2009    2010        2011                                    33
World indicative ethylene cash costs




Source: CMAI                            34
Management’s main priorities

   Implementation of the Quattor Transaction

   Analysis of the Transaction by CADE

   Continued strengthening of long-term relationship with Clients

   Prioritizing financial health and liquidity

   Construction of Green PE plant

   Projects in Latin America: competitive feedstock

   Selective acquisitions in North America


        Financial strength and respect for minority shareholders
                  Opportunities for internationalization
                                                                    35
CS LatAm Equity
Conference 2010

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  • 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 by 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 (September 30, 2009) 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. Agenda Strategic direction Quattor acquisition Braskem post transaction Key differentiators The petrochemical industry
  • 4. Strategic direction Vision 2020 Braskem Leader in the Americas, rank among the 5 largest petrochemical companies worldwide measures by EV* and to be positioned as the preferred partner for global alliances Source: Braskem * Enterprise Value 4
  • 5. Strategic drivers Quattor acquisition strongly aligned to the strategic drivers of the Company Feedstock and energy availability at competitive costs Defense of business in Business differentiation Latin America International expansion Diversification of in attractive markets products and business Source: Braskem 5
  • 6. Agenda Strategic direction Quattor acquisition Braskem post transaction Key differentiators The petrochemical industry
  • 7. Braskem overview Key Financials 2009 LTM*: Net Revenue R$ 15.3 billion Ethylene and resins capacity (kton/y) EBITDA R$ 2.4 billion 6,127 Net Result R$ (328) million 510 * Last 12 months 1,090 Profile: PVC 1,995 17 petrochemical plants with 1st and 2nd PP generations integrated: states of BA, RS, AL, SP (non integrated) PE Ethylene Listed in 3 stock exchanges: BM&FBovespa, NYSE and Latibex 2,532 Source: Braskem 7
  • 8. Quattor overview Key Financials 2009 LTM*: Net Revenue R$ 4.1 billion Ethylene and resins capacity (kton/y) EBITDA R$ 462 million 3,155 Net Result R$ (256) million * Last 12 months 875 Profile: PP 1,040 PE 9 petrochemical plants with 1st and 2nd generations partially integrated: states of Ethylene SP, RJ Private company 1,240 Source: Braskem / Company estimates / Quattor 8
  • 9. Geographic Complementarities Complementation and geographic diversification Country region with the highest availability of feedstock Quattor assets are located in Maceió the SE region; Marechal Deodoro The southeast region has the Camaçari largest thermoplastic resins domestic consumption; The privileged location of Quattor assets represents low logistics costs on the transport Mauá Duque de Caxias of products to the final resin Paulínia consumers. Triunfo Industrial Footprint Greenfields
  • 10. Benefits and strategic drivers Creation of a world scale player Diversification of feedstock supply Scale increase and geographic complementarities Strengthening of the production chain – petrochemicals and plastics Balanced capital structure Value creation for all shareholders Consolidation of Odebrecht and Petrobras shares in their activities in the petrochemical sector, strengthening Braskem and the Brazilian production chain to compete in the international market and ensuring the basis for global growth, consolidating the leadership in the Americas 10
  • 11. Transaction stages (1/2) 1. Creation of BRK Investimentos Petroquímicos SA (BRK) holding Braskem’s common shares from Odebrecht (ODB) and Petroquisa (PTB), followed by a capital increase of R$ 3,5 billion, R$ 1 billion from ODB and R$ 2.5 billion from PTB ODB PTB Aportes ODB PTB ODB/PTB 66,8% 33,2% 53.8% 46.2% BRK BRK 2. Braskem capital increase through Private Offer between R$ 4.5 billion and R$ 5 billion, with a minimum subscription of R$ 3.5 billion assured by BRK. The Offer share price will be R$ 14.40 per share 3. Braskem acquires Unipar 60% stake of Quattor Participações for R$ 647.3 million in addition to suceed Unipar in a liability with BNDESPAR 11
  • 12. Transaction stages (2/2) 4. Braskem merges Quattor shares, consolidating Petrobras/Petroquisa 40% interest in Braskem: Braskem 100% Quattor Participações 94,11% 65,98% 99,3% QQuímica RioPol QPetroquímica 25,00% RioPol 5,89% 9,02% permanecem com BNDESPar 5. Braskem acquires 33.3% of Polibutenos and 100% of Unipar Comercial for R$ 52.7 million These steps of the transaction are expected to be concluded in 120 days 12
  • 13. Assets to be acquired 40.0% Direct Subsidiaries 50.0% 33.3% 60.0% 100.0% Participações Divisão Qu 94.11% 65.98% 99.30% Química Petroquímica ímica 5.89% 9.02% 25.00% of RioPol remains with BNDESPar Source: Quattor 13
  • 14. Agenda Strategic direction Quattor acquisition Braskem post transaction Key differentiators The petrochemical industry
  • 15. Braskem post transaction Key Financials (2009 LTM* ProForma): Gross Revenue R$ 25.8 billion Resins capacity (kton/y) Net Revenue R$ 19.4 billion 5,510 EBITDA R$ 2.9 billion Total Assets R$ 33.5 billion 510 *LTM: oct/08 to sep/09 1,965 PVC Profile: PP 26 petrochemical plants with 1st and 2nd generations integration: States of BA, RS, PE AL, SP, RJ Listed in 3 stock exchanges: 3,035 BM&FBovespa, NYSE and Latibex Source: Braskem / Company estimates 15
  • 16. Assets location overview PVC Chlorine - Soda Naphtha cracker PE PVC 26 Plants in 5 states Chlorine – Soda - 17 Braskem plants PP - 9 Quattor plants AL Gas (ethane and propane) cracker BA PE PP QUATTOR ASSETS PROXIMITY OF THE CONSUMER MARKET Naphtha and LRH cracker PE RJ PP SP PVC Naphtha cracker Green Ethylene PE RS PP 16
  • 17. Quattor acquisition places Braskem as #1 resins producer in the Americas... Production capacity of resins in the Americas, kton/y 2009 basis 1st 5,510 5,307 4,827 510 1,230 4,256 4th 627 3,595 1,965 3,082 1,731 510 2,340 2,311 1,090 1,210 1,915 4,077 4,200 PVC 3,035 822 875 2,525 2,340 2,311 PP 1,995 1,050 1,040 PE Braskem Exxon Dow Lyondell Braskem Formosa Shintech Chevron Quattor post Mobil Basell Philips transaction Source: Braskem / CMAI / Barclays / Parpinelli Tecnon 17
  • 18. ... and in the global ranking, one of the Top 10 in resins Production capacity of resins (PE, PP, PVC) worldwide, kton/y 2009 basis 10,914 9,311 8,668 7,749 7,284 7,109 6,541 12th 4,681 4,564 4,303 4,079 3,595 19th 1,915 Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Total IPIC Reliance PetroChina Braskem Quattor Basell Mobil 10,914 9,311 8,668 7,749 7,284 7,109 8th Braskem 6,541 5,510 post transaction Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Braskem Basell Mobil post transaction Source: Braskem / CMAI / Barclays / Parpinelli Tecnon 18
  • 19. Diversity and competitiveness of feedstock to compete globally Feedstock profile (2009*) Refinery Propylene USGC international reference with competitive prices 8% 11% Petrobras as main supplier 37% 13% Naphtha/Condensate 17% 72% of Petrobras naphtha supplied at 92% competitive pricing formula 76% 46% 28% of purchases via imports Gas 100% of Petrobras gas supplied with Quattor Braskem Braskem competitive prices in relation to international post transaction references Liquid (2) Propylene Gas (1) (1) Ethane, Propane and LRH (2) Includes naphtha and condensate Ethanol Matrix with a greater balance and diversification Competitive gas pricing in relation to the international reference 19
  • 20. Concerns with Corporate Governance Braskem as a public company - Odebrecht as the controlling shareholder of the company Operational issues to be addressed by Braskem Executive Officers Sharing of strategic decisions (Board consensus), such as: Assets sales, acquisitions, investments etc Professional management - CEO chosen by Odebrecht and executive officers chosen by CEO, with Petrobras nominating 2 out of 8 Preferred partner for investments in the industry, exclusive choice in Latin America – Peru, COMPERJ, Suape, etc. Board of Directors with 11 members, out of which 1 is not nominated by the controlling shareholders 20
  • 21. Capital structure post transaction High liquidity, with availability around R$9 billion Capital structure with leverage (net debt/EBITDA) around 3x Opportunity to extend maturities and reduce the cost of debt through renegotiation Estimated Capital Estimated Capital ProForma Increase R$4.5bi - Increase R$5bi - Sep 09 Acquisitions Acquisitions Availabilities 4,274 8,074 8,574 Gross Debt 17,470 17,470 17,470 Net Debt 13,197 9,397 8,897 Net Debt / EBITDA 4.55x 3.24x 3.07x Shareholders’ 7,270 11,770 12,270 equity 21
  • 22. Braskem debt profile post transaction Short term cash balance of Braskem post transaction, without any capital injection, is enough to amortize debts maturing in 2009 and 2010 Consolidated Debt Profile (R$ million) Consolidated Debt No injection R$4.5 bi injection US$ R$ In R$ million Cash 4,274 8,774 47% 53% 8,774 Gross Debt 17,470 17,470 Net Debt 13,197 8,697 R$4.5 bi R$3.5bi injection injection Average Term: 7.1 years 3,200 2,518 4,274 > 3,828 2,288 1,556 1,896 1,932 1,264 1,086 1,416 728 1,144 1,140 620 934 900 1,644 516 617 1,204 1,254 1,202 601 123 752 796 156 447 494 333 69 Cash and 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Perp. Equivalents Braskem Debt (sep/09) Quattor Debt (sep/09)* * Braskem Estimates 22
  • 23. Partnership in new projects 700 kton/y PTA Suape: integration of the 450 kton/y PET petrochemical Complex All corporate 240 kton/y textiles polymers businesses into the Company and contractual assets instruments shall be signed Comperj: production and 860 kton/y PE within 120 marketing of resins and basic 850 kton/y PP days. petrochemicals 500 kton/y PTA 600 kton/y PET Maintaining financial solidity 700 kton/y PTX 608 kton/y Benzene 157 kton/y Butadiene 23
  • 24. Growth combined with improved competitiveness • Green PE: - 200 kton/y of green PE - Ethylene made from 100% renewable raw material, with sugarcane ethanol used as feedstock - Investments of R$ 488 million and startup expected for the end of 2010 - Financing package with BNDES approved in May/09 - 70% of the ethanol volume required on final contract negotiation • Venezuela (JVs with Pequiven with equal ownership) – Under Review: • Polipropileno del Sur (Propilsur) - 450 kton/y of PP - Startup in 2013 and investments estimated at US$1.2 billion - Front end engineering design (FEED) at its final stage, EPC contract negotiation and financing structure with the ECA´s and multilaterals in progress • Polietilenos de America (Polimerica) - 1.3 Mton of ethylene and 1.1 Mton/y of PE - Integrated project using the natural gas available in Venezuela as feedstock - Startup in 2014 and investments estimated at US$3.25 billion - Technology license agreements signed for the PE plants and 79% of the PE Project Design Packages (PDPs) concluded Source: Braskem 24
  • 25. Growth combined with improved competitiveness • Mexico: • Project Ethylene XXI - Partnership with the Mexican group IDESA for the acquisition of ethane from PEMEX to be used as feedstock for an integrated petrochemical project - 1 Mtons/y of ethylene and 1 Mtons/y of PE - Investment initially estimated in up to US$ 2.5 billion over the course of 5 years, planned to be financed by a project finance model with 70% debt and 30% equity • PVC Alagoas: - 210 kton/y of PVC capacity expansion in Alagoas, Brazil - Investments around US$500 million and startup expected for the second half of 2012 • Peru: - Braskem, Petrobras and PetroPerú concluded studies for the technical and economic pre- feasibility phase of an integrated project to produce 600 kton to 1.000 kton/y using the natural gas available in Peru as feedstock Source: Braskem 25
  • 26. Agenda Strategic direction Quattor acquisition Braskem post transaction Key differentiators The petrochemical industry
  • 27. Brazil: dynamic market with still low per capita consumption • PE, PP and PVC per capita consumption (Kg per person) 76 68 Brazil: 57 5.2% CAGR* 22.7 21.9 20.2 17.8 18.7 18.0 16.2 16.6 17.5 15.4 16.1 14.5 12.5 13.6 11.1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 USA Europe Japan PE PP PVC 27 * Compound annual growth rate 27 Source: CMAI
  • 28. In Brazil, companies are exposed to a dynamic market with resilient growth • Domestic demand for resins (Kton/y) 5.4% CAGR 3% 10% 4,172 9% 4,048 3,696 856 982 3,435 3,377 749 2,880 692 1,228 1,218 1,114 990 1,833 1,964 1,972 1,695 2001 2004 2005 2006 2007 2008 PE PP PVC Source: Abiquim – domestic sales + imports Source: NAD - CMAI 28
  • 29. Applied Innovation and technology to strengthen value chain competitiveness Structured resource base to support client needs Focus on product and application Over US$ 190 million in R&D assets development – 18% of resin sales > 170 researchers derive from products developed in the last three 8 pilot plants years – Focus on clients’ > 240 patents filed end users worldwide Targeted initiatives for breakthrough Partnership with universities and R&D centers in technology Brazil and abroad – Intelligent packaging – Renewables 29 29 Source: Braskem
  • 30. Agenda Strategic direction Quattor acquisition Braskem post transaction Key differentiators The petrochemical industry
  • 31. Petrochemical Cycle Good naphtha x resins spreads even with lower ethylene utilization rate Global ethylene supply-demand and operating rate (Mton/y, %) Points of concern 143 146 148 • Uncertainty regarding the extent of the 140 global economic recovery 134 134 130 127 120 • Incentives to sustain supply buildup 111 112 115 91 – China: import substitution – Middle East own agenda 87 • Stronger activity of capital investors in 86 the commodity market 84 83 83 Supply & Demand Balance Potential positive factors 2008 2009 2010 2011 2012 2013 • Frequent delays in new capacities Supply Demand Utilization Rate CMAI - May/09 • Operational and logistics problems Spread HDPE/Naphtha X Ethylene utilization rate (US$/ton, %) • Increased economic importance of emerging countries with relevant 91 91 domestic consumption, as Brazil and 702 717 751 750 688 694 China 84 609 • Supply-demand geographical imbalance 638 562 626 77 528 leads to logistics barriers 79 77 77 • Opportunities from assets on sale 474 • Limited utilization rates helps to balance Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 the market Spread HDPE/Naphtha Utilization rate 3Q09 Estimated utilization rate Source: CMAI 31
  • 32. 12 million tons of ethylene capacity lost in USA and Europe 2009 expected utilization rate: Kton 45,000 88% 82% 40,000 77% 35,000 67% • Lower global demand 30,000 25,000 growth and new 20,000 15,000 capacity additions 10,000 5,000 expected to come on 0 stream limiting the North Europe Middle Asia America East utilization rates of the Nameplate Capacity Effective Production actual players New ethylene capacity additions globally (Mton): • New capacity additions 12 10 could be delayed 8 6 4 Delayed 2 Go ahead 0 2009 2010 2011 2012 2013 Source: Parpinelli Tecnon / CMAI / SRI 32
  • 33. Major ethylene capacity additions in 2009: 9.5 Mtons of nameplate capacity in Asia and Middle East, of which 4.5 Mtons effectively operating Effective capacity Nameplate Country Company Startup in 2009 (Kton) Capacity (Kton) Kuwait TKOC 1Q09 850 850 Saudi Arabia Petro-Rabigh 2Q09 975 1,300 Saudi Arabia Yansab 3Q09 867 1,300 Qatar RLOC 3Q09 325 1,300 China Fujian Ref & Chem 3Q09 400 800 China Secco 3Q09 150 300 Saudi Arabia SHARQ 4Q09 100 1,200 China Dushanzi PC 4Q09 417 1,000 Thailand PTT Polyethylene 4Q09 250 1,000 China Panjin Ethylene 4Q09 113 450 4,447 9,500 10,340 3,832 Total ethylene 5,773 5,130 capacity 888 2,475 1,240 additions (kton) 202 1,450 4,040 4,033 China 3,083 Asia ex-China Middle East Source: CMAI / updated in Oct 30th. 2009 2010 2011 33
  • 34. World indicative ethylene cash costs Source: CMAI 34
  • 35. Management’s main priorities Implementation of the Quattor Transaction Analysis of the Transaction by CADE Continued strengthening of long-term relationship with Clients Prioritizing financial health and liquidity Construction of Green PE plant Projects in Latin America: competitive feedstock Selective acquisitions in North America Financial strength and respect for minority shareholders Opportunities for internationalization 35