2Q08 Results 2Q08 Results

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2

ForwardForward--looking Statementslooking Statements

This presentation contains forward-looking statements. These statements do

not represent historical fact, but rather reflect the beliefs and expectations

of Braskem’s management. The words “anticipate”, “wish”, “expect”,

“estimate”, “intend”, “forecast”, “plan”, “predict”, “project”, “target” and

similar words are intended to identify these statements. Although Braskem

believes that the expectations and assumptions reflected in these forward-

looking statements are reasonable and based on information currently

available to management, Braskem cannot guarantee future results or events.

The forward-looking statements included in this presentation are valid only

on the date on which they are made (June 30, 2008), and the Company does

not undertake any obligation to update them in light of new information or

future developments.

Braskem is not responsible for any transaction or investment decision taken

based on the information in this presentation.

3

Highlights 2Q08Highlights 2Q08

Operating Performance :

� Brazilian resin market grows 11% on 2Q08 x 2Q07

� Braskem’s resin sales in the domestic market grow 17%, with market

share of 53%

� Maintenance stoppage in Braskem’s 2 crackers:

� Increase of 25 kton/year in Triunfo’s ethylene capacity

� Naphtha ARA increases 48% on 2Q08 X 2Q07 and 50% on 1H08.

Impact on costs reaches R$ 601 million in 1H08

� Net income reaches R$ 383 million, positively impacted by the

Brazilian Real appreciation

4

Strategic Steps:

� Acquisition of the petrochemical assets of Ipiranga Group approved by CADE

� Braskem owns 100% of the total capital of Ipiranga Petroquímica and

Paulínia, and 99.2% of Copesul

� With the incorporation of Petrobras’ stake in these companies, Petrobras

increased its stake in Braskem from 6.8% to 23.1% of the total capital

� Green Polymer:

� Location – Triunfo

� Investment - R$ 450 million to R$ 500 million

� MOU signed between Braskem, Petrobras and Petroperu

Highlights 2Q08Highlights 2Q08

5

PP and PVC high production levels in a PP and PVC high production levels in a quarter with maintenance stoppagesquarter with maintenance stoppages

PE PP PVC

2Q081Q08

ETHYLENE

95%

74%

Source: Braskem

2Q07

86%

96%

� 35 days of maintenance stoppage in its two crackers

� 14 days of maintenance stoppage in the PE plants

2Q081Q082Q07 2Q081Q082Q07 2Q081Q082Q07

89%

73%

92%96%

89%

97%104%

102%

88%

704

2Q081Q08

624

LTM2Q08

LTM 2Q07

2,807 2,744

-2%

707

2Q07

Utilization RateUtilization Rate %%

Resin ProductionResin Production KtonKton

-11%

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Braskem strengthens leadership position Braskem strengthens leadership position in robust domestic market:in robust domestic market: DemandDemand +11%+11%

Source: Braskem / Abiquim

+13%

+ 18 %+17%+ 17%

+11%

PVCPPResin

BraskemPE

Brazilian market *

Others

Imports

53%*53%*

21%

26%

Domestic SalesDomestic Sales 2Q08 x 2Q072Q08 x 2Q07 %% Resin Market Share 2Q08Resin Market Share 2Q08

* Braskem market-share includes sales of PVC imported by the Company

*Domestic sales + Imports

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EBITDA EvolutionCommercial strategy minimizes impact from Naphtha prices increases and foreign exchange rate appreciation

EBITDA EvolutionEBITDA EvolutionCommercial strategy minimizes impact from Naphtha Commercial strategy minimizes impact from Naphtha prices increases and foreign exchange rate appreciationprices increases and foreign exchange rate appreciation

921

2Q07 2Q08Volume

Source: Braskem

(326)

(1,179)

1,266

(126)

519

763

(1,089)

67

R$ million

(104)

Prices Foreign Exchange

Raw Materials

Fixed Costs/ SG&A

Non-recurring gains PIS/

Cofins 2Q07

FX impact on costs

FX impacton revenue

8Source: Braskem

583

1Q08 2Q08

(16)

166 (136)

519

185

(246)

(193)

R$ million

(136)

(61) (39)

79

VolumePrices Foreign Exchange

Raw Materials

Fixed Costs/ SG&A

Other

FX impact on costs

FX impacton revenue

EBITDA EvolutionIncrease in basic petrochemical prices and higher volumes in domestic market minimizes impacts from higher raw materials costs

EBITDA EBITDA EvolutionEvolutionIncrease in basic petrochemical prices and higher volumes in Increase in basic petrochemical prices and higher volumes in domestic market minimizes impacts from higher raw materials costdomestic market minimizes impacts from higher raw materials costss

9Source: Braskem

Main Economic Performance IndicatorsMain Economic Performance Indicators

R$ million

(28)695504(8)220420120384Net Income Before Minority Interest

144084653636228183383Net Income

-(163)206--(59)(200)407Net Financial Result

-6.4 p.p.18.9%12.5%-6.7 p.p.-1.4 p.p.18.5%13.2%11.8%Ebitda Margin

(38)1,7741,102(44)(11)921583519EBITDA

(6)9,3938,816(11)04,9694,4104,405Net Revenue

Chg. % Chg. % (D)/(E)(D)/(E)

1H07 1H07 (E)(E)

1H08 1H08 (D)(D)

Chg. % Chg. % (A)/( C)(A)/( C)

Chg. % Chg. % (A)/(B)(A)/(B)

2Q07 2Q07 ( C)( C)

1Q08 1Q08 (B)(B)

2Q08 2Q08 (A)(A)

Main Economic Main Economic IndicatorsIndicators

10

2016 /2017

Source: Braskem

Lengthening of debt profileLengthening of debt profileis a priorityis a priority

in million of R$ (06/30/08)

06/30/08

1,831

2008 2009 2010 2011 2012 /2013

2014 /2015

2018 /2020

Perpetuals

11%11% 11%11% 11%11%

6%6%

15%15%

6%6%

Includes R$ 1.1 billion from the bridge loan related to the acquistion of the petrochemical assets of the Ipiranga Group

10%10%

25%25%

407407

5%5%1,1961,196

990

838838 936936 947947 933933

493493

1,3571,357

557557

1,1341,134

697697

145

2.78

Mar08 Jun08

2.56

+9%

Gross DebtGross Debt: 8,799: 8,799

Net DebtNet Debt: 6,968: 6,968

AverageAverage TermTerm: 10.5 : 10.5 yearsyears

Net Net DebtDebt / Ebitda (x)/ Ebitda (x)

US$ 70%

Cash and equivalents

In US$

In R$

Fixed 3%Bridge Loan

13%

US$

35%Trade

Finance

22%

CDI

13%

TJLP

14%

11

2008 Outlook2008 Outlook

� Emerging markets support the world’s growth, despite slowdown

in the US economy

� High resin prices pressured by high raw materials costs

� Robust demand in the domestic resin market

� Improved productivity and industrial performance

� Acceleration of synergy gains and costs reduction

� Incorporation of the petrochemical assets of the Ipiranga Group

� Venezuela

� Conclusion of the economic and feasibility studies will allow

investment decision on PP plant

2Q08 Results 2Q08 Results

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