6th annual latam ceo conference itau bba (inglês)

6th Annual Latam CEO 6th Annual Latam CEO 6th Annual Latam CEO Conference ItauBBA

May 2011

6th Annual Latam CEO Conference ItauBBA

May 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 (March 31, 2011) 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 the Brazilian market

� Strong growth track record with attractive project pipeline in Brazil, Latin America and Sustainable chemicals (focus on renewable raw materials)

� Listed in 3 stock exchanges: BM&FBovespa, NYSE and Latibex - 100% tag along

� Investment grade rating by S&P and Moody’s

�Market Cap (05/12/2011) – US$ 11.2 billion

� EV – Net debt March 2011 – US$ 17.1 billion � 3 PP

�Diversified portfolio of petrochemical products, with focus on PE, PP and PVC

� Annual capacity of 6,460 kton

� 31 facilities in Brazil and USA

� Naphtha and gas based crackers (70/30)

� Petrobras as the main supplier in Brazil (~70% of naphtha needs and 100% of gas needs)

Financial Highlights

Industrial Assets

� 1 gas cracker� 1 PP� 1 PE

� 1 naphtha cracker� 2 PP� 3 PE

� 1 naphtha cracker� 1 ethanol cracker� 5 PE� 2 PP

� 1 PVC� 1 Chlorine-soda

�1 naphtha cracker� 4 PE� 1 PP� 1 PVC�1 Chlorine-soda

2010 LTM 2011∆

R$ billion Consolidated Consolidated

Net Revenue 27.8 28.6 + 2,9%

EBITDA 4.1 4.1 -

Net Debt/EBITDA 2.43x 2.37X - 2,5%

Financial Highlights

Potential Short term Upside

� Synergies:

- Additional EBITDA – R$ 495 million on a recurring basis as of 2012, out of which R$ 377 million in 2011

� Expectation of cycle recovery as of 2012

3

Agenda

� The Petrochemical Industry

� Vision and Growth pipeline

� South America and Brazil: an unique global position

Global competitiveness: gas x naphtha

� Final considerations

� Global competitiveness: gas x naphtha

� Recent financial performance

4

Agenda







5

“BECOME THE GLOBAL

SUSTAINABLE CHEMICAL

LEADER, INNOVATING

Strategic Vision

LEADER, INNOVATING

FOR BETTER SERVE THE

PEOPLE”.

6

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

�Internacionalization

�Latin America and US as good alternatives for future competitive feedstock�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

7

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 US$470 million

�Expected NPV ~US$450 million

�Total of R$149 million invested in 2010 and 2011 in the project

�Expected disbursement of R$380 million in 2011

�Long term financing from BNDES (up to R$525 million) and from BNB

Industrial Assets

New Projects

2006 2007 2008 2009 2010

Imports

Domestic Sales

748

950982857

1,119

17%

31%26%34%19%

Source: Braskem

�Long term financing from BNDES (up to R$525 million) and from BNB(R$ 200 million) at very competitive costs

�Support for Brazil’s infrastructure projects

�Brazil currently imports ~30% of its needs

PVC Domestic Demand (kton)

8

Brazil – adding value to the cracker chain

Butadiene�Operational start-up : 2013

�Capacity: 100 kton/y

Polybutadiene SBR

Styrene Butadiene Rubber

SSBR

Solution SBR

NBR

Acrylonitrile Butadiene

Rubber

TR

Thermoplastic Rubber

Source: Braskem

�Capacity: 100 kton/y

�Location: Triunfo (Rio Grande do Sul)

� Investments of R$300 million

�Pre-sales contracts have been firmed, receiving ~US$127 million of

payments in advance

�Raw material for the manufacture of rubber tires and synthetic rubbers

Industrial Assets

New Projects

�Tighter market balance sustaining higher prices

� Light feedstock expansion limiting the availability of C4 supply

� In 2010, butadiene prices increased by 50% from 2009

�Continuous consumption growth

� Higher demand from emerging markets

� Recovery of the mature markets

Attractiveness worldwide

9

Brazil – potential capacity expansion projects

PEPEPEPE

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

2013 2013 -- 201520152013 2013 -- 20152015 2016 2016 -- 201820182016 2016 -- 20182018

PVCPVCPVCPVC� Greenfield adding ~250

kton/y in the northeast of Brazil

� COMPERJ – from 1.1 to 1.5 million tons of ethylene

PPPP

� ~ 100kton/y through DBNs in Rio Grande do Sul (south of Brazil) and São Paulo (southeast of Brazil) or 300 kton/y through a greenfieldproject

10

Sustainable Chemicals

Green PP

2013

�Successful track record for

�Innovation in bioplasticmarket

�Production integrated with

Development

�Partnerships for the development of competitive technologies

Green PE

2010 – started

up in 4Q10

�Successful track record for implementing projects: term and costs

�Capture of 2.5t CO2/t PE

�Partnership with Customers

�Production integrated with green propylene

�Capture of 2.3t CO2/t PP�Cooperation agreement with

Cenpes (Petrobras Research Center)

�Development of other cracks streams to sustainable chemicals

�PE integrated project study

Braskem becomes a global leader in

biopolymers

11

Access to competitive feedstock The Ethylene XXI Project (Mexico)

Mexico: Ethylene XXI Project

�Operational start-up: January 2015

�JV between Braskem (65%) and the Mexicangroup IDESA (35%) for the purchase of ethanefrom PEMEX

�Integrated project: 1 Mton/y of ethylene and1 Mton/y of PE

�Fixed Investment: US$ 2.5 billion over 5 years�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 LyondellBasell for PE plants technologies

�Technip was selected as the technology supplierfor the ethylene cracker

�Financial Advisor hired: Sumitomo Bank

�Structuring of the participation of ECAs andMLAs1 – already received over US$ 6 billion inletters of interest

Source: Braskem 1 Export Credit Agency (ECA) and Multilateral Agency (MLA) 12

Proj. EXXI in 2014

�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)

Mexican Polyethylene Market

Polyethylene Mexican Market

0,4 0,5 0,5 0,5 0,6 0,7 0,7 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 0,8 0,8

1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0

1,1 1,1 1,1 1,2 1,1 1,0 1,1 1,1 1,3 1,4 1,5

0,7 0,8 0,9 1,0 1,1 1,2 1,3 1,4 1,5 1,6 1,7

-

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

ton

/ye

ar

Supply Ethylene XXI Deficit

13

Converters Profile

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

Total: 3,500 ConvertersTotal: 3,500 Converters

Big

4% Medium

12%

Small

24%

Micros

60%

14

Unique pipeline of growth in the Americas

� Green PE – already operational

� Ethylene XXI - Mexico(+ 1,000 kton/y ethylene and + 1,000 kton/y PE)

� Butadiene (100 kton/y)

� Brownfield/Greenfield expansion projects in Brazil: PE and PP assets

� Comperj – integrated complex in Rio de Janeiro (southeast Brazil)

� New Biopolymers Plants in Brazil –integrated project (1st and 2nd

generation)

Consolidated Project Pipeline

� 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

2010 - 2012 2013 - 2015 Projects under evaluation

operational(+ 200 kton/y ethylene)

� PVC Expansion (+ 200 kton/y)

� Butadiene (100 kton/y)

� Green PP(+ 30 kton/y ethylene/ propylene)

generation)

� Peru(~1,000 kton/y ethylene/PE)

� Venezuela – under revaluation

Source: Braskem

Consolidated Project Pipeline

15

Structured resource base to support customer needs:

� Over R$ 330 million in R&D assets

� More than 190 researchers

� 8 pilot plants

� More than 400 patents filed worldwide

Innovation & Technology

Innovation and Technology Center

�Strenghtening the value chain competitiviness

PP

Coffee Bags

� 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

BIOPOLYMERSInnovation pipeline

NPV: ~US$ 510 millionPP

PVCPVC

Doors

PE

Rotomolded Manhole

16

Innovation & Technology

PP - NEW PP WASHING MACHINES

Partners: Electrolux and Colormaq

Innovation: Steel and PET replacement in

washing machine body part (lower cost and

weight)

Target Sales: 6 kton/year

PP - LOW VOC AUTOMOTIVE GRADE

Partner: Lyondell-Basell Brazil

Innovation: High performance grade for

automotive compounds.


PE - LARGE ROTOMOLDED WATER TANKS PE - GRAIN BAGS

PP

Partner: Fortlev

Innovation: Fiberglass tank replacement


PVC - PVC WINDOWS

Partners: Claris, Primeira Linha, Veka and

Weiku

Innovation: Increase PVC window profile

application in the market


Partner: Pacifil

Innovation: Lower cost and faster installation

with flexible silos for grain storage


PVC - PVC ROOF TILES (To be launched)

Partners: Not disclosed now due to secrecy

agreement

Innovation: Asbestos and Clay roof tiles

replacement


17

Agenda







18

Ethylene: Operating rate 1Q11

Overview 1Q11

� Naphtha prices following oil volatility

� Unscheduled shutdowns and better market

demand in the mature markets

� Chinese economy once again presented

growth above market estimates

� Competitive gas prices bring advantage to

US players

MM ton

Outlook on the global petrochemical industry

83

91 92

78

86

8081

89 88

74

83 81

50

60

70

80

90

0

5

10

15

20

Europe N. America Asia M. East World Braskem

1

2

Source: CMAI, Parpinelli Tecnon

US players

Outlook

� Scheduled maintenance shutdowns in

Europe and Asia

� Upward price trend of resins and basic

petrochemicals, following higher costs

� Continuous instability in Middle East

operations

� Stronger global demand

Ethylene: Supply and Demand Balance

MM ton

83.5 83.986.3

88.790.7 91.3

0

50

100

150

200

2010 2011e 2012e 2013e 2014e 2015e

Capacity Demand Operating Rate (%)

19

Europe N. America Asia M. East World Braskem

Capacity 1Q11 Operating rate 1Q11 (%) Operating rate 4Q10 (%)

1 Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days.2 Impacted by the power blackout that occurred on February 4 in all states in Brazil's Northeast

Demand growth shall overcome new capacity additions

EthyleneDemand

CAGR 10-154.4%

Supply

CAGR 10-152.8%

Asia

Africa

Middle East

Europe

6,521

2,805

4,5146,090

9,010

6.7% 3.4%

5.2%4.5% 4.4% 4.3%

6.8%

3.2%2.3% 2.6%

4.0%

2.1%

Capacity(MM ton)

Source: CMAI, March/2011

� 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

� Greenfield projects: 4-5 years to startup

Europe

Americas

Closures

Postponed/Delayed

Supply Growth %

Demand Growth %

20

2,067 743 962

(1,282) (1,227)(699) (150)

529

468

490

3,229

1,816

1,200

2,545

375

400

550

3,216

2,652

3,774

2,805

2,462

2010 2011 2012 2013 2014 2015

-19% Delayed

3,8143,423

3,417

9,010

Agenda







21

South America:Second player hasaround 10% of Braskem’scapacity

North America# 32 players

W.Europe# 29 players

Braskem: unique position in the global industry

Braskem responsible for over 60% of the capacity share of thermoplastic resins* in South America – 69% market share in Brazil.

Source: Analysts reports, CMAI capacity list

capacity

South America# 12 players

* PE, PP and PVC

M.East# 38 players

N.Asia~# 150 players

S.Asia~# 40 playersBraskem: 5,510

Ecopetrol: 548

Mexichem: 416

PBB Polisur: 650

Pequiven: 185

Petro Dow: 42

Petroken: 180

PETROQUIM: 120

Petroquímica Cuyo: 130

Polinter: 495

Propilven: 115

Solvay Indupa: 541

Capacity (000 Metric Tons)

22

Brazil: strong potential growth

2010 Market Share Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth%

69%

26%

5%

Braskem

Others

Imports

Estimate: Resins Demand ~ 2.0x GDP

-0.6%

7.5%

4.5%1.0%

15.0%

10.0%2x GDP

Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE.

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

Brazil:

18 17 19 18 20 21 22 23 25

2002 2003 2004 2005 2006 2007 2008 2009 2010

6558

46

31

USA Europe Japan China

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

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

23

� Origin of Imports in 1Q11

(PE, PP and PVC) � Braskem’s Sales Profile – 1Q11

Domestic market performance

32%5%

5%

11%

AGRIBUSINESS

RETAIL

OTHERS

FOOD PACKAGING

North America

27%Asia

Europe

12%

Others

11%

Source: Abiquim, Braskem 24

Americas account for 67% of imports

� Imports represented 27% of the

domestic market

9%

9%9%

13%

7%AUTOMOTIVE

CONSUMER

GOODS

HYGIENE AND

CLEANINGINDUSTRIAL

CONSTRUCTION

27%

Argentina

25%

Colombia

14%

Mexico

1%

Asia

10%

Agenda







25

US ethane-based industry to remain more competitive than naphtha based producers

Source: CMAI 26

Preference for light feed (ethane) and refineries low utilization rates to shorten co-products supply worldwide

U.S. Shale Gas Advantange does not benefit all...

• Relative cost advantage accrues to the integrated

and gas basis contracted products

• Lower Btu values mean that lower feedstock and

eletricity prices are a potential but not a certainty –

market forces prevail

Global Base Chemical and PlasticsWeighted Average Earnings Before Interest & Taxes

Segment Contribution – U.S. Dollars per Metric Ton

Source: CMAI

• Differentiated natural gas results in lower

generation of C4s and aromatics in steam crackers –

may change trade volumes

A comparison of

some of the products

impacted by the

difference in natural

gas values vs. Oil

prices MO

DE

RA

TE

AD

VA

NT

AG

E

HIG

HLY

AD

VA

NT

AG

E Polyethylene

EthyleneOxide

Derivatives

MEG, Amines, Alpha Olefins

Chlorine & Caustic Soda

VinylsEDC / VCM

Styrenics

NO

AD

VA

NT

AG

E Refinery Products

BTX

Propylene(Methanol)

Relative Advantage Due to Natural Gas

27

Potential benefits for Braskem in this scenario

Increased polymers competitiveness:

• gas-based projects; and

• increasing price scenario for co-products

(reducing naphtha based costs)

1,070

1,628

408 497 459 284505

165 265 395391

920498

867 801824

1.181

2006 2007 2008 2009 2010

Co-products Revenue (US$)

Propylene Butadiene BTX

1,655 1,499

2,605

Source: Braskem

8%

92%

Braskem

13%

17%

67%

3%

Braskem Post-Acquisitions

24%

15%58%

3%

Braskem 2015*

33%

13%

51%

2%

Braskem 2018**

Naphtha and Condensate Gas

EthanolRefinery Propylene

*Considering Mexico Project

**Considering Comperj Project

Raw Material Profile

Propylene Butadiene BTX

28

Agenda








29

Recent Financial Performance

1,638

2,308 2,354

2009 2010 LTM 2011

EBITDA (US$ million)

+40,9%

+2,0%

Exports

Net Revenue (million of US$)

11,620

15,833 16,620

2009 2010 LTM 2011

+36,3%

+5,0%

23% 26% 28%

30

Exports 23% 26% 28%

2002 2003 2004 2005 2006 2007 2008 2009 2010

2,965 3,045 3,145 3,1903,621

5,551

10,21210,412

5,921

Nominal Capacity (kton)

Resins

Ethylene

Green Ethylene

EBITDA (US$ million)

457 581

871 851 764

1,626

1,337

1,638

2,308 2,354

2002 2003 2004 2005 2006 2007 2008 2009 2010 LTM 2011

R$ million

EBITDA performance: 1Q11 vs. 1Q10

� Brazilian real appreciation and the increase in raw

material price were offset by higher prices of resins and

basic petrochemicals.

244

4

FX impact

on costs 284

FX impact

on revenue(401)

31Source: Braskem

910 11778

29 15

919

EBITDA

1Q10

Contribution

Margin

Others FX Power

Blackout Cost

Volume Fixed Costs

SG&A

EBITDA

1Q11

( )

( )

( )( )

Leverage decrease and Braskem’s ratings raised to investment grade

2,389 1,3811,847

1,891

2,598

501

570*

2,89011%

10%

15% 15%

8%

10% 10%

21%

Amortization Schedule(1)

(R$ million)

03/31/2011

� Gross debt pegged to dollar: 64%

32

Call of US$200 million in perpetual bonds issued in 2006, with

coupon of 9% p.a.. Issue of US$750 million in bonds with maturity

in 2021 destined for short and medium term debt pre-payment,

with less atractive costs..

Agency Rating Outlook Date

Moody's Baa3 Stable 3/31/2011

S&P BBB- Stable 3/30/2011

Fitch BB+ Positive 1/11/2011

Moody's Aa2.br Stable 3/31/2011

S&P brAAA Stable 3/30/2011

Fitch AA (bra) Positive 1/11/2011

Corporate Credit Rating

Global Scale

National Scale

2,389 1,381

1,202

1,891

1,054

1,314 1,300

2011 2012 2013 2014 2015 2016/

2017

2018/

20192020

onwards03/31/11

Cash

8%

(1) Does not include transaction costs

Invested in US$

Invested in R$

* Stand by of US$ 350 million

� Gross debt pegged to dollar: 64%

� Net debt pegged to dollar: 79%

Synergies from Quattor acquisition totaling R$75 million in 1Q11

EBITDA 2011*: R$377 millionEBITDA 1Q11*: R$75 million

7524

19

R$ million

377

82

61

R$ million

* Annual and RecurringSource: Braskem 33

Identification of new opportunities, efficient and rapid implementation of initiatives to capture synergies

� Integrated planning for industrial units

� Centralized maintenance plan assets strategy

� Optimization of freight and gains in distribution and storage

� Joint purchase of materials for industrial operations

� Fiscal gains and lower cost of debt

32

7524

Industrial Logistics Supply EBITDA Synergies

234

Industrial Logistics Supply EBITDA Synergies

Agenda








34

Outlook and Priorities

Petrochemical market:

� Naphtha price impacted by the oil price volatility

� Global petrochemical scenario marked by recovery, but oversupply is still expected for 2011, improving from2Q11. Mitigating factors:

� Operational instability, delays on the startup of new plants, scheduled shutdowns in Europe and Asia and tradesanctions imposed on Iran;

� Higher prices of resins and basic petrochemicals;

� Strong demand from emerging countries like China, India and Brazil.

Braskem’s priorities:

35

� Strengthening of the Brazilian petrochemical and plastics production chain

� To follow the domestic resins’ market growth: 9-10% in 2011 and regain the market share

� Ensure capture of identified synergies

� Adding value through the acquired assets

� Quattor: continue improvement in its operational efficiency

� Braskem America: return above capital employed

� Maintaining liquidity and financial health

� Growth Project

– PVC Alagoas expansion

– Project Ethylene XXI in Mexico, which is based in competitive raw material

– To define Comperj’s configuration with Petrobras

– Expand the use of renewable feedstock

� Maintain the leadership in sustainable chemicals

6th Annual Latam CEO 6th Annual Latam CEO 6th Annual Latam CEO Conference ItauBBA

May 2011

6th Annual Latam CEO Conference ItauBBA

May 2011

AppendixAppendix

Ownership Structure Leveraging relationship with Petrobras

50.1% / 38.2%

MinorityShareholders

47.1% / 35.8%

Voting Shares / Total Shares

0.0% / 5.9% 2.8% / 20.1%

- World leader in E&P in deep waters;

- Present in the industry as investor, supplier and client;

- Investment Grade by all 3 Rating Agencies.

- Conglomerate;

- More than 30-years in the petrochemical industry;

- Investment Grade by Moody’s and Fitch.

Source: Braskem

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

company

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

- to lead all petrochemical investments identified by Petrobras;

- if not of its interest, has the right to commercialize such products.

Go

ve

rna

nce

38

Leader in the Americas and a top 8 global player in resins capacity

4th

1st

Ca

pa

city

in th

e A

me

rica

s (

kto

n/y

)

3,035

4,077 4,200

2,525 1,995 2,311

2,915 1,230

627

1,731

1,090

822 875

510

510

1,210

2,340

PVC

PP

6,460

4,827

3,595

4,256

3,082

2,340 2,3111,915

5,307

950

Lyondell Basell

ExxonMobil

SINOPEC Dow Formosa SABIC Ineos Braskem post

operations

Total IPIC Reliance PetroChina Braskem

10,914

9,3118,668

7,749 7,284 7,1096,541 6,460

4,681 4,564 4,303 4,079 3,595

transactions

8th

12th

Ca

pa

city

in th

e A

me

rica

s (

World

Ca

pa

city

(kto

n/y

)

Braskem post

transactions

Exxon Mobil

Dow Lyondell Basell

Braskem Formosa Shintech Chevron Philips

Quattor Sunoco

2,525 1,995

1,050

2,311

1,040 950

2,340 PP

PE

39

Global Ethylene and Resins supply/demand

Global Ethylene Supply/Demand (Mton/y)

133 143 148 150 153 156 161

112 119 123

130 135 141 147

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

Supply

Demand

Source: CMAI, March 2011

Global Resins Supply (Mton/y) Global Resins Demand (Mton/y)

* Compounded Annual Growth Rate

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

67 71 75 79 83 88 92

45 48 51 54 57 61 64 32 34 37 39 41 43 45

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

144

173163154

200182

191

CAGR* 09-15

5.7%

82 90 93 95 98 99 103

55 61 65 67 70 71 73

43 46 50 51 52 52 53

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

PVC

PP

PE

181

214207229

219 223

CAGR* 09-15

4.0%

197

40

Resins demand by region

2010 Resins (PE, PP, PVC) Demand by region

Africa

3%

Europe

18%

China

27%

Source: CMAI 2010 estimates

North America

17%

South America

6%Middle East

6%

Asia ex-China

23%

The Brazilian demand for resins represents 3% of global demand

41

86% 87%78% 83% 80% 85%

94% 93%

2009 2010 2009 2010 2009 2010 2009 2010

Ethylene Polyethylene Polypropylene PVC

63%71%

83% 89% 94%

4Q09 1Q10 2Q10 3Q10 4Q10

Capacity utilization rates were positively impacted by the improvement of Quattor’s assets

Braskem consolidated operating rates %%

Quattor - Ethylene

� 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

*2009 data does not include Quattor expansion of 200 kton

2009 2010 2009 2010 2009 2010 2009 20104Q09 1Q10 2Q10 3Q10 4Q10

Source: Braskem 42

Fuel 4%

Others 19%

Net Revenue by Product (1)

2010

Revenues breakdown – 2010

Resins

53%

Ethylene 4%

Propylene 4%

Butadiene 4%

BTX 8%

Cumene 2%

ETBE 2%

Source: Braskem

1 Does not include naphtha/ condensate/crude oil processing and distributor sales

* Benzene, Toluene, Paraxylene and Orthoxylene

43

2010 COGS breakdown

Naphtha , 53.1%

Other Variable

Costs, 7.2%

Labor, 3.1%

Services, 1.5%

Others, 0.9%

Deprec / Amort,

7.0%

Freight, 3.9%

COGS 2010 (1)

Source: Braskem

Gas as

feedstock, 16.9%

Electric Energy,

4.3%

Natural Gas,

2.4%

(1) Does not include naphtha / condensate / crude oil processing

and Quantiq costs

44

Exports Destination – 2010

Europe

15%

Asia

6%

Others

1%

Exports 2010

Source: Braskem

The Export Market represents 26% of Company’s Net Revenue.

45

N. America

44%

C. America

6%

S. America

28%

� Contribution margin was positive impacted by the

higher sales volume and the improvement in resin-

naphtha spread. FX impacted by the appreciation in

Brazilian real.

R$ million

1,979

FX impact

on costs 2,089

FX impact

on revenues(3,140)

EBITDA performance: 2010 vs. 2009

**2009 non-recurring effect amounts R$135 million*SG&A: R$244 million of non-recurring expenses in 2010

3,181

523

1,051

441 135

4,055

EBITDA

2009

Volume Contribution

Margin

FX Fixed Costs

SG&A

Non recurring

effect 2009

EBITDA

2010

( )

( ) ( )

* **

Source: Braskem46

EBITDA performance: 1Q11 vs. 4Q10

R$ million� Higher resins and basic petrochemical prices didn’t

offset the increase in raw material cost and Brazilian

real appreciation. Sales volume, seasonally lower, were

negatively impacted by the unscheduled maintenance

shutdown in the northeast plants.

1,074

71

FX impact

on costs 62

FX impact

on revenue(87)

Source: Braskem 47

8178

35 25 7

919

EBITDA

4Q10

Fixed Costs

SG&A

Contribution

Margin

Power

Blackout Cost

Volume FX Others EBITDA

1Q11

( )( ) ( )

( )

( )

Debt Profile Mar/11

Foreign Gov.

Entities

1%

Brazilian Gov.

Entities

26%

Capital Market

38%

Gross Debt by Category

CDI

9%

BRL - PRE

7%

USD-POS

TJLP

19%

Gross Debt by Index

Source: Braskem48

Banks

35%

38%

USD-PRE

55%

USD-POS

9%

Outstanding Bonds & Outstanding Ratings

Outstanding Bonds MaturityCoupon

(% p.a.)

Yield **

(% p.a.)

US$84.3 MM * Jan/2014 11.750 2.8

US$65.3 MM * Jun/2015 9.375 3.4

US$130.7 MM * Jan/2017 8.000 4.6

US$500 MM Jun/2018 7.250 5.1

US$750 MM May/2020 7.000 5.5

US$450 MM Perpetual 7.375 6.8

US$750 MM Apr/2021 5.750 5.5

Agency Rating Outlook Reviewed in

Fitch Ratings BB+ Positive 01/11/2011

S&P BBB- Stable 03/30/2011

Moody’s Baa3 Stable 03/31/2011

Corporate Credit Rating – Global Scale

* Post Tender Offer expired in April, 20th

Source: Braskem / Bloomberg49

** As of May, 13th

Covenants

2.43x 2.37x

Dec 10 Mar 11

(R$ million)

-2%

2.56x 2.52x

Dec 10 Mar 11

(US$ million)

-2%

Net Debt/EBITDA

Source: Braskem

Facility Amount* Mar 11 Currency Type

Senior Notes R$ 500 MM R$ 500 MM R$ Issuance

Nippon Export and

Investment InsuranceUS$80 MM US$33 MM US$ Maintenance

EPP (Export Pre-Payment) US$725 MM US$400 MM US$ Maintenance

*The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / EBITDA ratio.

50

Dec 10 Mar 11 Dec 10 Mar 11

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