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Conference Call
    1Q11
Investor Relations
São Paulo, May 13, 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
Highlights

  1Q11 net revenue reached US$4.4 billion or R$7.4 billion, a growth of 8% and 6%, respectively, over
  4Q10 and a growth of 22% in dollar, over 1Q10.
  EBITDA stood at R$919 million mainly due to the limited availability of products.
       Power blackout in the northeast of Brazil negatively impacted Braskem’s EBITDA around R$230
       million.

  Braskem is committed to its financial solidity:
       At the end of March, S&P and Moody’s upgraded Braskem to Investment grade
       Net debt/EBITDA ratio trended downward to 2.37x
       Issue of US$750 million bonds with maturity in April 2021, with the lowest coupon of Company’s
       history, 5.75% p.a. and with a yield of 6.00% p.a.
  Synergies from Quattor acquisition totalized R$75 million in 1Q11.
  Expansion projects:
       Approved the expansion of 100,000 tons of butadiene in the South complex
       Braskem announced partnership with Technip for the cracker technology of Project Ethylene XXI –
       Mexico


                                                                                                         3
Segment performance – 1Q11 x 1Q10

            POLYOLEFINS
           • Total sales volume up 2% due to better PP availability
           • Strong growth presented by agriculture, food packaging and infrastructure sectors
           • Net revenue: up 17% in dollar and 8% in Brazilian real

            VINYLS
           • PVC and caustic soda sales volume down around 10% (negatively impacted by the
             blackout)
           • Higher prices partially offset the volume decrease
           • Net revenue: an increase of 2% in dollar and decrease of 6% in Brazilian real
            BASIC PETROCHEMICALS
           • Prices growth above 20%
           • Higher raw material cost and price improvement of cracker co-products
           • Net revenue: up 20% in dollar and 11% in Brazilian real


            INTERNATIONAL BUSINESS
           • Production growth of 9%
           • Net revenue: up 24%, reaching US$392 million


                                                                                                 4
Domestic market performance

        Domestic Resins Performance – 1Q11 Vs. 1Q10                            Origin of Imports in 1Q11
                                                                               (PE, PP and PVC)
                                       0% Brazilian Market
               -5%                         Braskem's Sales


                                                                                                  Others
                                                                                                   11%
                                                                                         Europe
        Braskem’s Sales Profile – 1Q11                                                    12%
                                                                                                           North America
                                                                                       Asia                     27%
                     OTHERS                                                            10%

                                 11%                                          Mexico
            RETAIL                                                                       Colombia
                                                                               1%
                                                             FOOD PACKAGING                14%             Argentina
                            5%
   AGRIBUSINESS                                  32%                                                          25%
                       5%

  AUTOMOTIVE         7%


                           13%                                                    Americas account for 67% of imports
                                                 9%
     CONSTRUCTION
                                  9%      9%            CONSUMER
                                                        GOODS                   Imports represented 27% of the
                                          HYGIENE AND                         domestic market
                      INDUSTRIAL
                                          CLEANING




Source: Abiquim, Braskem                                                                                                   5
EBITDA performance: 1Q11 vs. 4Q10

                                                                                                               R$ million
       Higher resins and basic petrochemical prices didn’t
      offset the increase in raw material cost and Brazilian                      FX impact
      real appreciation. Sales volume, seasonally lower, were                     on costs         62
      negatively impacted by the unscheduled maintenance
                                                                                              FX impact
      shutdown in the northeast plants.                                             (87)      on revenue



                               71
                  1,074

                                           ( 81 )                                                           919
                                                        ( 78)
                                                                 ( 35 )   ( 25)            ( 7)




                  EBITDA   Fixed Costs Contribution Power       Volume     FX           Others             EBITDA
                   4Q10       SG&A       Margin Blackout Cost                                               1Q11

Source: Braskem                                                                                                             6
EBITDA performance: 1Q11 vs. 1Q10

                                                                                                                   R$ million
      Brazilian real appreciation and the increase in raw
      material price were offset by higher prices of resins and
      basic petrochemicals.
                                                                         FX impact
                                                                         on costs        284

                                                                                     FX impact
                                                                                     on revenue
                                                                          (401)
                                               4
                                 244


                   910                                     (117)                                                 919
                                                                       ( 78 )
                                                                                       ( 29 )        ( 15 )




                  EBITDA    Contribution    Others        Power       Volume            FX        Fixed Costs   EBITDA
                   1Q10       Margin                  Blackout Cost                                  SG&A        1Q11


Source: Braskem                                                                                                                 7
Leverage decrease and Braskem’s ratings raised to
investment grade
                                       Amortization Schedule(1)
                                            (R$ million)
                                            03/31/2011




           570*
                                                                                               21%
           501
                                      15%        15%

                     11%                                               10%         10%        2,598
 2,890                        10%     1,847
                                                1,891       8%
          2,389     1,381                                             1,314                                 Gross debt pegged to dollar: 64%
                              1,202                                               1,300
                                                           1,054                                            Net debt pegged to dollar: 79%


                                      2013       2014       2015       2016/      2018/        2020                      Corporate Credit Rating
         03/31/11    2011     2012
           Cash                                                        2017       2019        onwards
                                                                                                           Agency    Rating         Outlook          Date
                                                                   (1) Does not
                                                                              include transaction costs
            Invested in R$                                                                                Global Scale
            Invested in US$                                        * Stand by of US$ 350 million
                                                                                                          Moody's        Baa3        Stable        3/31/2011
                                                                                                           S&P           BBB-        Stable        3/30/2011
                                                                                                           Fitch         BB+        Positive       1/11/2011
            Call of US$200 million in perpetual bonds issued in 2006, with                                National Scale
            coupon of 9% p.a.. Issue of US$750 million in bonds with maturity                             Moody's Aa2.br             Stable        3/31/2011
            in 2021 destined for short and medium term debt pre-payment,                                   S&P     brAAA             Stable        3/30/2011
            with less attractive costs..                                                                   Fitch  AA (bra)          Positive       1/11/2011




                                                                                                                                                               8
Synergies from Quattor acquisition totaling
    R$75 million in 1Q11
          EBITDA 1Q11*: R$75 million                                              EBITDA 2011*: R$377 million

    R$ million                                                             R$ million



                                                                                                                  61
                                                                                                82
                                           19
                                                                                                                               377
                             24
                                                              75                 234
            32

          Industrial       Logistics      Supply        EBITDA Synergies        Industrial    Logistics          Supply   EBITDA Synergies




          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

Source: Braskem                                                                              * Annual and Recurring                          9
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 from
    2Q11. Mitigating factors:
        Operational instability, delays on the startup of new plants, scheduled shutdowns in Europe and Asia and trade
        sanctions imposed on Iran;
        Higher prices of resins and basic petrochemicals;
        Strong demand from emerging countries like China, India and Brazil.

Braskem’s priorities:
    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
                                                                                                                     10
Conference Call
    1Q11
Investor Relations
São Paulo, May 13, 2011

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1 q11 conference call presentation

  • 1. Conference Call 1Q11 Investor Relations São Paulo, May 13, 2011
  • 2. 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
  • 3. Highlights 1Q11 net revenue reached US$4.4 billion or R$7.4 billion, a growth of 8% and 6%, respectively, over 4Q10 and a growth of 22% in dollar, over 1Q10. EBITDA stood at R$919 million mainly due to the limited availability of products. Power blackout in the northeast of Brazil negatively impacted Braskem’s EBITDA around R$230 million. Braskem is committed to its financial solidity: At the end of March, S&P and Moody’s upgraded Braskem to Investment grade Net debt/EBITDA ratio trended downward to 2.37x Issue of US$750 million bonds with maturity in April 2021, with the lowest coupon of Company’s history, 5.75% p.a. and with a yield of 6.00% p.a. Synergies from Quattor acquisition totalized R$75 million in 1Q11. Expansion projects: Approved the expansion of 100,000 tons of butadiene in the South complex Braskem announced partnership with Technip for the cracker technology of Project Ethylene XXI – Mexico 3
  • 4. Segment performance – 1Q11 x 1Q10 POLYOLEFINS • Total sales volume up 2% due to better PP availability • Strong growth presented by agriculture, food packaging and infrastructure sectors • Net revenue: up 17% in dollar and 8% in Brazilian real VINYLS • PVC and caustic soda sales volume down around 10% (negatively impacted by the blackout) • Higher prices partially offset the volume decrease • Net revenue: an increase of 2% in dollar and decrease of 6% in Brazilian real BASIC PETROCHEMICALS • Prices growth above 20% • Higher raw material cost and price improvement of cracker co-products • Net revenue: up 20% in dollar and 11% in Brazilian real INTERNATIONAL BUSINESS • Production growth of 9% • Net revenue: up 24%, reaching US$392 million 4
  • 5. Domestic market performance Domestic Resins Performance – 1Q11 Vs. 1Q10 Origin of Imports in 1Q11 (PE, PP and PVC) 0% Brazilian Market -5% Braskem's Sales Others 11% Europe Braskem’s Sales Profile – 1Q11 12% North America Asia 27% OTHERS 10% 11% Mexico RETAIL Colombia 1% FOOD PACKAGING 14% Argentina 5% AGRIBUSINESS 32% 25% 5% AUTOMOTIVE 7% 13% Americas account for 67% of imports 9% CONSTRUCTION 9% 9% CONSUMER GOODS Imports represented 27% of the HYGIENE AND domestic market INDUSTRIAL CLEANING Source: Abiquim, Braskem 5
  • 6. EBITDA performance: 1Q11 vs. 4Q10 R$ million Higher resins and basic petrochemical prices didn’t offset the increase in raw material cost and Brazilian FX impact real appreciation. Sales volume, seasonally lower, were on costs 62 negatively impacted by the unscheduled maintenance FX impact shutdown in the northeast plants. (87) on revenue 71 1,074 ( 81 ) 919 ( 78) ( 35 ) ( 25) ( 7) EBITDA Fixed Costs Contribution Power Volume FX Others EBITDA 4Q10 SG&A Margin Blackout Cost 1Q11 Source: Braskem 6
  • 7. EBITDA performance: 1Q11 vs. 1Q10 R$ million Brazilian real appreciation and the increase in raw material price were offset by higher prices of resins and basic petrochemicals. FX impact on costs 284 FX impact on revenue (401) 4 244 910 (117) 919 ( 78 ) ( 29 ) ( 15 ) EBITDA Contribution Others Power Volume FX Fixed Costs EBITDA 1Q10 Margin Blackout Cost SG&A 1Q11 Source: Braskem 7
  • 8. Leverage decrease and Braskem’s ratings raised to investment grade Amortization Schedule(1) (R$ million) 03/31/2011 570* 21% 501 15% 15% 11% 10% 10% 2,598 2,890 10% 1,847 1,891 8% 2,389 1,381 1,314 Gross debt pegged to dollar: 64% 1,202 1,300 1,054 Net debt pegged to dollar: 79% 2013 2014 2015 2016/ 2018/ 2020 Corporate Credit Rating 03/31/11 2011 2012 Cash 2017 2019 onwards Agency Rating Outlook Date (1) Does not include transaction costs Invested in R$ Global Scale Invested in US$ * Stand by of US$ 350 million Moody's Baa3 Stable 3/31/2011 S&P BBB- Stable 3/30/2011 Fitch BB+ Positive 1/11/2011 Call of US$200 million in perpetual bonds issued in 2006, with National Scale coupon of 9% p.a.. Issue of US$750 million in bonds with maturity Moody's Aa2.br Stable 3/31/2011 in 2021 destined for short and medium term debt pre-payment, S&P brAAA Stable 3/30/2011 with less attractive costs.. Fitch AA (bra) Positive 1/11/2011 8
  • 9. Synergies from Quattor acquisition totaling R$75 million in 1Q11 EBITDA 1Q11*: R$75 million EBITDA 2011*: R$377 million R$ million R$ million 61 82 19 377 24 75 234 32 Industrial Logistics Supply EBITDA Synergies Industrial Logistics Supply EBITDA Synergies 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 Source: Braskem * Annual and Recurring 9
  • 10. 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 from 2Q11. Mitigating factors: Operational instability, delays on the startup of new plants, scheduled shutdowns in Europe and Asia and trade sanctions imposed on Iran; Higher prices of resins and basic petrochemicals; Strong demand from emerging countries like China, India and Brazil. Braskem’s priorities: 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 10
  • 11. Conference Call 1Q11 Investor Relations São Paulo, May 13, 2011