2. Forward-looking Statements
This presentation contains forward-looking statements. Such statements are not
statements of historical facts, and reflect the beliefs and expectations of
Braskem’s management. The words “anticipates”, “wishes”, “expects”,
“estimates”, “intends”, “forecasts”, “plans”, “predicts”, “projects”, “targets”
and similar words are intended to identify these statements. Although Braskem
believes that expectations and assumptions reflected in the forward-looking
statements are reasonable based on information currently available to Braskem’s
management, Braskem cannot guarantee future results or events.
Forward-looking statements included in this presentation speak only as of the
date they were made (March 31, 2009), and the Company does not undertake any
obligation to update them in light of new information or future developments.
Braskem shall not be responsible for any transaction or investment decisions that
are taken based on information included in this presentation.
2
3. Agenda
The Company & 1Q09 Financials
Petrochemical Industry
Key Differentiators
3
3
4. Braskem in a snapshot
Leading petrochemical company in Latin America
Third largest resins producer in the Americas
Diversified portfolio of petrochemical products, with
focus on PE, PP and PVC
18 facilities plants in Brazil and annual production
capacity of 11 million tons of chemical and
petrochemical products
Key financials, 2008
Gross revenue = US$ 12.8 billion
Net revenue = US$ 10.0 billion (78% in Brazil)
Ebitda = US$ 1.3 billion
Assets = US$ 9.7 billion
Listed at Bovespa, NYSE and LATIBEX
4
5. Ownership Structure – Leveraging
relationship with Petrobras
% Voting Capital % Total Capital
ODEBRECHT GROUP PETROBRAS BNDESPAR OTHERS
62.3% 38.3% 31.0% 25.3% 0.0% 5.1% 6.7% 31.3%
Leveraging relationship with Petrobras: NOC alliance
• Potential for operational synergies with refineries and partnership
with Petrobras R&D Center
• Alliance to strengthen Brazil’s petrochemical value chain
– Consolidation around 2 large competitors (Braskem & Quattor)
– Access to competitive raw materials
– Improved value chain competitiveness
• Corporate governance standards: Shareholders’ agreement
5
7. Track record of strong and consistent
organic growth and acquisitions
Rank amongst the 10
Become the largest largest petrochemical
thermoplastic resins companies in the world
producer in Latin measured by EV*
America
Triunfo
Paulinia
IPQ / CPS
Politeno 2009 2012
Polialden 2007 2008
2006
Trikem
2002
5,901
5,551
Braskem’s Ethylene and
resins capacity (kt) 22% CAGR
3,621 Acquisitions
3,045 3,145 3,225
1,200
Organic growth
2000 2002 2004 2005 2006 2007 2008 * Enterprise Value 7
8. Applied Innovation and technology to
strengthen value chain competitiveness
Structured resource base to support client
needs • Focus on product and
application
development
Over US$ 160 million in R&D assets
– 18% of resin sales
derive from products
200 researchers developed in the last
three years
– Focus on clients’ end
8 pilot plants users
• Targeted initiatives for
219 patents filed breakthrough
technology
Partnership with universities and R&D centers in – Nanotechnology and
intelligent packaging
Brazil and abroad – Renewables
8
Source: Braskem 8
9. Growth combined with
improved competitiveness
Green PE:
− Cornerstone laid for its green ethylene plant in 04/22/09
− Investments of R$488 million and start-up expected for the end of 2010
− Competitive product with oil at US$45/bbl
− 60% of the volume with long-term commercial agreements nearing completion
− Financing package with BNDES approved in 05/ May
Venezuela:
Polipropileno del Sur (Propilsur)
- Negotiations with BNDES Exim for Brazilian equipment and services related
to the project
- Due Diligence expected for the coming months
- Project Finance expected for 2H09
- Investment final approval expected for 2H09
Polietilenos de America (Polimerica)
− Ongoing licensing agreements with technology suppliers
9
10. Global Scenario
. US producers (gas base) more competitive and local market remains weak
. Supply problems at the Asian market
. Prices in Asia expected to drop in 2H09 due to Middle East and India supply
. Global ethylene capacity:
. 6 MMt starting operations – 80% in the Middle East
. 7 MMt stopped or iddle – USA and Europe (excludes Asia)
. 4 MMt delayed – Middle East and Asia
. Consumption of non-durable goods in Brazil shows resilience when compared to
2008
. Brazilian industries with best performances in the period: Packages, Home
Appliances, Consumption Goods, Personal Hygiene and Cleaning
. Industries still presenting poor performance: Agribusiness, Automotive,
Construction
10
11. 1Q09 Achievements
. New Naphtha Agreement:
- agreement under confidentiality clause regarding disclosure of price formula
- clause assuring adjustment to ARA quality standard
- price formula to weaken volatility and improve predictability
- foreseen discount and premium over ARA reference
- ~60% of volume from Braskem
- 5 years, renewable for other 5 years
. Maintenance of financial discipline: cash of R$ 3 billion
. Resumption of full capacity in March (95% ethylene)
. Doubled exports when compared to 4Q08
. Inventories average cost leveled with production costs in March
. Productivity program leads to a reduction of R$ 78 million in SG&A in the quarter
. Reduced disbursement with investments 49% lower vis a vis 1Q08
11
12. Braskem sales by industry: growing non-
durable goods
% PE Sales 20O8 % PE Sales 1QO9
CLEANING MATERIAL
OTHERS
CLEANING MATERIAL AND HYGIENE
18% RETAIL 16% 6%
AND HYGIENE 15% OTHERS
12%
8% AGRICULTURE
AGRICULTURE
RETAIL 13% 6%
52%
2% CONSUMER GOODS
7% CONSUMER GOODS 36%
37% 8%
FOOD CONSTRUCTION
4% CONSTRUCTION
24% 4% PACKAGING 2% CHEMICALS AND
FOOD PACKAGING 4%
CHEMICALS AND AGROCHEMICALS 3% AGROCHEMICALS
3% AUTOMOTIVE
9% AUTOMOTIVE
COSMETICS AND PHARMACEUTICALS HYGIENE, COSMETICS AND
PHARMACEUTICALS
% PP Sales 20O8 % PP Sales 1QO9
CONSUMER GOODS
ELECTRIC AND ELECTRIC AND ELECTRONIC
ELECTRONIC 17% 7% CONSUMER GOODS
6% 15%
CLEANING INDUSTRIAL CLEANING
MATERIAL 6% MATERIAL
AND 10% AND 15% INDUSTRIAL
HYGIENE HYGIENE 8%
9% AUTOMOTIVE
47% 55%
5% AGRICULTURE
7% AUTOMOTIVE
4% COSMETICS AND
FOOD 31% FOOD 33% 6% AGRICULTURE
PHARMACEUTICALS PACKAGING
PACKAGING
12% 3%
COSMETICS AND
OTHERS 6% PHARMACEUTICALS
Source: Braskem OTHERS 12
13. March performance shows trends for the
upcoming quarter
Resins Sales Volume in the Domestic
2Q09 Trend in the Domestic Market
Market
Volume Price Revenue Cost
PP
PE
PVC
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Source: Braskem 13
14. EBITDA
Reduced resins prices overcome the positive impact
from lower raw material prices
R$ milhões FX impact
60 on revenue
FX impact
(44)
on costs
26 23
86
97
1,175
565
458
(1,514)
Raw Taxes
4Q08 Materials
Volume FX SG&A Price 1Q09
(PIS / Cofins)
Soure: Braskem
14
15. Short-term debt well managed and long-term debt well
distributed with an average term of 11 years
R$ Million (03/31/09)
Gross Debt: 12,151 Net Debt / Ebitda (x) R$ Net Debt / Ebitda (x) US$
Net Debt: 9,181
Average Term: 10.5 years 4.00
3.73 3.31
2.89
72% of the debt are pegged to the USD
+7,2% +15%
Cash and Equivalents
2,970 Dec08 Mar09 Dec08 Mar08
1,814
14%
13% 13%
PFICO 12% 12%
10% 11%
726 9%
1,570 1,457 1,448 6% 1,628
1,156 1,346
1,225 1,158
943
710
03/31/09 2009 2010 2011 2012 2013 2014 / 2016 / 2018 / 2020
2015 2017 2019 onwards
In R$
Value related to the loan granted by a Petrobras subsidiary for the delisting of Copesul,
In US$
due in October 2009
Source: Braskem 15
16. Agenda
The Company & 1Q09 Financials
Petrochemical Industry
Key Differentiators
16
16
17. Petrochemical Cycle: Good naphtha X resins spreads
even with lower ethylene utilization rate
Global ethylene supply-demand and operating rate, Points of concern
Mton/y. %
146
143 • US/EU slowdown
140 130
134 • Incentives to sustain supply buildup
130 118 123
– China: import substitution
114 114
– Middle East own agenda
• Credit availability
87% • Change on petrochemicals ownership
86%
84%
83%
82%
Supply & Demand
Balance
Potential positive factors
2008 2009 2010 2011 2012
• Frequent delays in new capacities
CMAI Utilization Rate Feb/09
1 2 3 Supply Demand
5
• Supply-demand geographical imbalance
Spread PEAD/Naphtha X Ethylene Utilization Rate leads to logistics barriers
91 91 • Increased economic importance of
702 717 emerging countries with relevant
751 750 84 83 domestic consumption
638 562
77 528 • China: raw materials less competitive
• Opportunities from assets on sale
474
• 7MMton of capacities temporarily
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 shutdown
Spread PEAD/Naphtha US$/ton Utilization Rate % Utilization Rate 2009e %
Source: CMAI 17
18. 5% of the world ethylene capacity
shutdown or idle
Dow (USA)
- Dec/08: 522 kton cracker New capacity addition (kton):
- Jan/09: 390 kton cracker
- Feb/09: 102 kton of LDPE and 998 kton cracker
Westlake (USA)
- Dec/08: 544 kton cracker
Lyondell Basell (USA/Europe) 4,203
- Feb/09: 544 kton cracker in USA; 185 kton of
LDPE, UK, and 110 kton of LDPE, France
1,145
Basf (Europe)
- Mar/09: 240 kton cracker, Germany 452
Sabic (Europe)
- Feb/09: 865 kton cracker, UK 1,825
ExxonMobil (USA)
- Sep/08: 826 kton cracker
Formosa Plastics (USA) 4,890
- Nov/08: 680 kton cracker
3,533
DuPont (USA)
- Sep/08: 680 kton cracker
Flint Hill Resources (USA)
- Jan/09: 348 kton cracker
Chevron Philips (USA) 2009 2010
- Nov/08: 295 kton cracker
Eastman Chemical (USA) Middle East Asia Ex-China China
- Nov/08: 141 kton cracker
Source: Chemsweek’s Business Daily / HSBC / CMAI 18
19. Resins demand grows even in economic
slowdown periods
PE Demand X World GDP
6.0% 80,000
70,000
5.0%
60,000
4.0%
50,000
3.0% 40,000
30,000
2.0%
20,000
1.0%
10,000
0.0% 0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
World GDP Growth Economic Slowdown PE Demand
Source: CMAI / IMF 19
20. Agenda
The Company & 2008 Financials
Petrochemical Industry
Key Differentiators
20
20
21. Brazil: A stable economy
Structural changes have prepared the country to
the current environment
Economic policy based on inflation target, fiscal
responsibility and floating exchange rate GDP growth and inflation
%
% GDP
interest
Competitive, diversified and open economy 7 7
6 6
Liquid financial system
5 5
Mature democracy 4 4
3 3
Broad and consumerist domestic market 2 2
1 1
Greater competitiveness of Brazilian multinationals
0 0
2007 2008 2009 2010
Focus on improving social conditions (health, education, -1 -1
GDP Inflation
income distribution)
Sovereign debt in a record low, rated investment grade
(S&P, Fitch)
Source: Tendências Consulting - Bradesco and Santander Perspectives 21
22. Brazil: dynamic market with still low
per capita consumption
• PE, PP and PVC per capita consumption (Kg per person)
81
71
55
Brazil
5.2%
CAGR*
21.9
22.7
18.7 20.2
15.4 16.6 16.1 17.8 17.5 18.0
14.5 16.2
13.6
11.1 12.5
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
USA Europe Japan
PE PP PVC
22
Source: CMAI *Compound annual growth rate 22
24. … and a high level of consolidation
• Number of Producers • 2 Top producers share
100% 100%
11 93%
13
9
42% 52%
3 30%
2 2
PP PE PVC PP PE PVC
BRAZIL USA
24
Source: Braskem / CMAI 24
25. Braskem is prepared to seize the
opportunities offered by this environment
n
re atio
e c C
valu
w ith Expand access to
w
G ro
attractive markets
B
Strengthen current position Assure regional
low-cost raw
A material and energy
supplies • Expansion of Green-PE
Increase and and renewable
protect core Latin • M&As
American business
• Global Alliances
• Gas crackers in Latin America
• Operational and commercial excellence
• Brazilian sugar cane ethanol
• Relationship with Petrobras
• Value-chain virtual integration
– Refineries and raw materials
– Logistics and services
– Innovation and technology
• Enhancement of aromatics and crackers’
products
• Regional leadership 25
26. Short Term Focus
Clients’ proximity
Focus on financial health and liquidity
Productivity Program: cost reduction
Defend Brazilian petrochemical and plastic chain against imported
products
Identification of synergies with Petrobras
Construction of the Green PE plant
Analysis of opportunities arising from crisis: selective acquisitions
Greater operational and financial strength
26
29. Resins Capacity in the Americas
Capacity of resins in Latin America, kt
3,600
Brazilian
assets
1,895
692 682
521 438
Braskem*Quattor** Dow Mexichem Solvay Ecopetrol
Capacity of resins in Americas, kt
5,774
PVC
64
PP
615 PE
4,646
3,600
2.949
1,833
515
1,110 1,210 2,161
5,095
2,813 2,040
761 1,235
1,975
978 926
Dow Lyondell Braskem Formosa Ineos Shintech
Source: CMAI
Basell
2
9
* Includes Petroquimica Triunfo s plant
´
**JV between Unipar (60%) and Petrobras (40%). The production is segregated between 1,020 kt in PE and 875 kt in PP
29
30. Income statement
Change Change Change
Main Economic 1Q09 4Q08 1Q08 2008 2007
Indicators (A) (B) % % (D) (E)
%
( C)
(A)/(B) (A)/( C) (D)/(E)
Net Revenue 3,155 4,132 4,401 (24) (28) 17,960 18,788 (4)
EBITDA 458 565 601 (19) (24) 2,418 3,250 (26)
EBITDA Margin 14.5% 13.7% 13.7% 0.8 p.p. 0.8 p.p. 13.5% 17.3% -3.8 p.p.
Net Financial Result (209) (2,243) (219) - (5) (3,685) (367) 903
Net Income / Loss 10 (2,140) 80 - (88) (2,492) 642 -
30
33. Plants operating at full capacity
in March
Utilization Rate %
ETHYLENE PE PP PVC
97% 104%
95% 95%
89%
73% 73% 74% 76%
69% 70%
64%
1Q08 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 4Q08 1Q09 1Q08 4Q08 1Q09
Resins Production Kt Monthly Utilization Rate - Ethylene Kt
704
611 95%
599
78%
47%
+2%
1Q08 4Q08 1Q09 Jan Feb Mar
Source: Braskem 33
34. Outstanding Bonds &
Outstanding Ratings
Coupon Yield *
Outstanding Bonds Maturity
(% p.a.) (% p.a.)
US$250 MM Jan/2014 11.750 7.5
US$250 MM Jun/2015 9.375 7.6
US$275 MM Jan/2017 8.000 8.1
US$500 MM Jun/2018 7.250 8.0
US$150 MM Perpetual 9.750 11.1
US$200 MM Perpetual 9.000 11.7
* As of May, 15th
Corporate Credit Rating – Global Scale
Agency Rating Outlook
Fitch Ratings BB+ Stable
S&P BB+ Stable
Moody’s Ba1 Stable
Source: Braskem / Bloomberg 34
35. Covenants
RATIO Net Debt / Ebitda (x)
Net Debt / EBITDA US$ R$
4.00
< 4.5X 3.31
Mar09 Mar09
Facility Amount Currency Type
2010 and 2011 Debentures R$800 MM R$ Incurrence*
2014 Medium Term Notes US$250 MM R$ Incurrence*
Nippon Export and
US$80 MM US$ Maintenance
Investment Insurance
EPP (Export Pre-Payment) US$725 MM US$ Maintenance
* The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / Ebitda
ratio.
Source: Braskem 35
36. Focus on priority investment projects
R$ million
2,279
Investments in Equity Stake
885
(Ipiranga Group/Politeno)
Capacity increases /
195 Petroquímica Paulínia 909
238 Equipment Replacement
Health, Safety and Environment 172 Capacity increases / Green PE
161
91 Technology Equipment Replacement
213
202
Productivity
Health, Safety and Environment
203
14 Technology
407 Maintenance
74 Productivity
55 Information System
233 Maintenance / Others
45 Quality / Others
2008 2009e
Source: Braskem 36
