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Meeting with
 Investors
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 (June 30, 2010) 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

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        3
Agenda

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        4
Braskem overview

    Leading thermoplastic company in
    the Americas
    Diversified portfolio of                                                 Industrial Assets
    petrochemical products, with focus
                                                                      3 PP
    on PE, PP and PVC
      Annual capacity of 6,460 kton
    31 facilities in Brazil and USA                                             1 PVC
                                                                                1 Chlorine-soda
       Naphtha and gas based crackers
                                                                               1 naphtha cracker
       Petrobras as the main supplier in Brazil                                4 PE
                                                                               1 PP
    Attractive project pipeline in Latin                                       1 PVC
                                                                               1 Chlorine-soda
    America
    Listed in 3 stock exchanges:                                             1 gas cracker
    BM&FBovespa, NYSE and Latibex                                            1 PP
                                                                             1 PE
    100% tag along
                                                                             1 naphtha cracker
    Key Financials LTM 2Q10                       1 naphtha cracker
                                                                             2 PP
                                                                             3 PE
       Net Revenue: R$ 24.8 billion               1 ethanol cracker
                                                  5 PE
       EBITDA: R$ 3.8 billion                     2 PP



Source: Braskem                                                                                  5
Track record of success with
clear objectives                                                                                                  6,460
                  Resins Capacity (kton/y)
                                                                                                  3,595
                           Acquisitions                     2,341                                                 4,275
                                                                                                   1,410
                           Organic Growth                    520
                                                            1,821                                  2,185
                                                                                                                  2,185
                                                                                                              Leader in the
                                                                         54% capacity              80% capacityAmericas
                                                                           increase                  increase
                                                      Leader in Latin
                                                         America
                                                                                                              Acquisitions
                                                                                               Petroquímica    Quattor +                           2020
                                                                        Ipiranga, Copesul         Triunfo       Sunoco
                                                                           and Paulínia
                                                          Politeno
                                             Polialden                                                            2010
                                 Trikem                                                             2009
                    OPP                                                                 2008
                                                            2006        2007
                                               2005
                                   2004
                    2003
         2002
                                                               2006




                                                                                                                    increase and disbursement of
                                                                                                                        After R$3.74 bi capital

                                                                                                                         Quattor and Sunoco
                                                                                                                             acquisitions
                                                            2.76x                   2,89x         2.98x        3.23x                               2.84x
                                                                                                                                        2Q10



Source: Braskem
                                                                             Net Debt/EBITDA (US$)
                                                                                                                                                           6
Leader in the Americas and a top 8 global
                                  player in resins capacity
                                             1st
                                        6,460
Capacity in the Americas (kt/y)




                                         510
                         (




                                                     5,307
                                                                 4,827
                                                                               4,256
                                                                                          4th
                                                     1,230        627
                                        2,915
                                                                                          3,595
                                                                                                         3,082
                                                                               1,731       510
                                                                                                                     2,340         2,311
                                                       4,077                              1,090      1,210                                                   1,915
                                                                 4,200                                                                                                                               PVC
                                        3,035                                                            822                                                 875                     950
                                                                               2,525                                 2,340          2,311                                                            PP
                                                                                          1,995
                                                                                                     1,050                                                   1,040                   950             PE


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

                                     10,914
World Capacity (kt/y)




                                                   9,311
                                                               8,668                                                             8th
                                                                          7,749        7,284       7,109
                                                                                                                 6,541          6,460
                                                                                                                                              4,681    4,564                                  12th
                                                                                                                                                                      4,303       4,079
                                                                                                                                                                                              3,595




                                  Lyondell     Exxon       SINOPEC       Dow        Formosa      SABIC         Ineos         Braskem        Total     IPIC         Reliance   PetroChina   Braskem
                                   Basell      Mobil                                                                           post
                                                                                                                            transactions
                                                                                                                            operations                                                                    7
Consistent growth
EBITDA 1 (US$ million)
                                23.1%

                                              18.0%         16.9%                          15.5%      Nominal Capacity (kton)
                      19.3%
           19.1%                                                                 14.4%
                                                                                                           Resins
                                                      14.1%           13.5%
                                                                                                           Ethylene

                                       CAGR: 21%                                                                    CAGR: 19%
                                                                                            2,132                                                        10,212
                                                              1,626               1,642
                                                                        1,337
                                                                                                                                                 5,921
                                 871                                                                                                     5,551
                                          851         764
                      581                                                                            2,965 3,045 3,145 3,190 3,621
            457




       2002        2003     2004       2005     2006        2007      2008      2009      LTM
                                                                                          2010      2002   2003     2004   2005   2006   2007    2008    2009

EV         2.4      3.9       5.8       4.2      4.7        7.6       5.1       7.5       13.4

(US$ bi)

EV/ 5.2x           6.7x     6.6x       5.0x     6.2x        4.6x      3.8x      4.8x      6.3x

EBITDA
                   Supported by higher production, market leadership, successful sales policies and industry
                                                       consolidation                            8
Source: Braskem             1   Pro-forma figures for 2009 and 1Q10: Braskem + Quattor + Sunoco                                                                   8
Agenda

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        9
Quattor acquisition
                                                                                                            Opportunities




                                                    Bahia
                                                                         PP HOMO/COPO (1979)
                                                                         Capacity: 115 kty                    Asset concentration in Southeast
                                                                         Technology: Slurry Shell
                                                                                                              (~70% Brazilian resin consumption);
                                                                                                              Optimization of logistics distribution
                                                                                                              related to reduction in external
                                                                                                              storage;
                                             Camaçari
                                                                           Cracker (2005)                     Diversified RM matrix – balance
                                                                            Capacity: 520 kty ethylene
                                                        Rio de Janeiro     Technology: ABB Lummus –
                                                                                                              between naphtha-natural gas;
                                                                           ethane/propane                     Joint administration of raw material
                                     Mauá Duque de
                                                                           HDPE/LLDPE (2005)                  agreements;
                                   Paulínia Caxias                         Capacity: 540 kty
                                                                           Technology: Gas phase - Unipol     Renegotiation of service and insurance
                                                                           PP HOMO/COPO (1992)                contracts;
                                 Triunfo
                                                                           Capacity: 310 kty                  Unification of production and
            Cracker (1972)                                                 Technology: Bulk – Lipp
            Capacity: 700 kty ethylene*                                                                       maintenance practices;
            Technology: ABB Lummus
            (naphtha)                                                                                         Unification of Technology and
            LDPE/ EVA (1972)                                                                                  Innovation centers;
            Capacity: 120 kty
                                                                                                              Reduction of working capital costs;
São Paulo




            Technology: HP Autoclave
            HDPE/ LDPE (2008)                                             Acquisition disbursement:           Tax and logistical synergies;
            Capacity: 240 kty
            Technology: Slurry – Chevron Phillips                             R$647.3 million                 Organizational restructuring.
            LDPE (1965)
            Capacity: 140 kty
            Technology: Tubular                                                                             Challenges
            PP HOMO/COPO (2003)                                                                               Stability of raw material supplies;
            Capacity: 450 kty
            Technology: Spheripol                                                                             Integration of cultures.
    *200 kty expansion effectively coming online in 2010                                                                                               10
Quattor - key indicators
     Operational Indicators
        Operating rate (%)                1Q10          2Q10
        Ethylene                          71%(1)        83%(1)

        PE                                 61%           76%


     Financial Indicators
        R$ million                        1Q10          2Q10
        Net Revenue                       1,220         1,425

        EBITDA                            107            214

        EBITDA Margin                     8.8%          15.0%    Outlook as of 2H10
                                                                  Cabiúnas and Reduc refineries
                                                                  normalized operation enabled
                                                                  Riopol to have the best
         Main impact on operational profit in 2Q10                monthly operating rates in
                                                                  July: 86% for ethylene and 77%
           Increase in operating rates with better stability      for PE;
           of raw material supply: supply from Mauá
           complex normalized in May 2010                         Petrobras’ commitment to
                                                                  normalize supply to enable
                                                                  Riopol to operate at full
                                                                  capacity by October 2010.
(1) Considering   the 200 kty expansion                                                            11
Quattor synergies of R$ 400(a) million in
   EBITDA as of 2012
    R$ million
                                                                  43



                                           79




                                                                                   400
                                           Investment of R$ 350 million
                                           required to capture all
                    279                    synergies
                                           Financial synergy NPV
                                           estimated in R$ 340 million




                  Industrial            Logistics               Supply        EBITDA Synergies


           Production mix           Maximization of        Joint management
           Seizing the cracker      gains from product     of feedstock
           streams                  distribution           purchases
                                    (domestic and          Renegotiation of
           Optimization of
                                    export markets)        third-party
           inventories
                                    Optimization of        agreements
                  (a)
                                    modes
Source: Braskem         Recurring                                                                12
Braskem America (former Sunoco)
                                    R&T Center
                                       Pittsburgh,                     Opportunities
                                               PA
                                                                         Global-scale, state-of-the-art assets –
                                                                         technology and age similar to Brazil’s
                                                                         polypropylene (PP) assets;
                                                                         Development of a global production
                              Neal, WV               Marcus Hook, PA
                                                             1 PP
                                                                         base;
                                   1 PP
                                                                         Consolidation of industrial assets;
                                                                         Competitive costs for some 70% of raw
                                                                         materials;
                        La Porte, TX                                     Platform for greenfield projects in
                             1 PP
                                                                         Latin America.

  Acquisition disbursement:
      US$350 million                                                   Challenges
                                                                         Knowledge of North American
Financial Indicators                                                     distribution market;
                                                                         Add value to supplier ⇔ client chain
R$ million      1H09          1H10                                       (substitute distributor);
Net Revenue      764          1,109                                      Highly disperse market;

EBITDA            88          106                                        Resumption in demand vs.
                                                                         uncertainty of economic recovery.

                                                                                                                   13
Agenda

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        14
Strategic Direction



  “BECOME THE GLOBAL
 SUSTAINABLE CHEMICAL
LEADER, INNOVATING FOR
   BETTER SERVE THE
       PEOPLE”.




                         15
Green Polyethylene
First Green Plastic Certified in the World
                                 Location: Triunfo – RS
                POLYETHYLENE
                                 Capacity: 200 Kton/y
                                 Startup: September 2010
                                 Investment: R$ 488 million
                                 Consumption of 460,000 m³ of ethanol per year
                                 75% of the ethanol supply is already contracted
                                 Demand 3x higher than the installed capacity
Main Clients and Partners




                                                   Partnership in R&D – Renewable Polymers
                                                   Green PE trading in Asia
                                                                                             16
Expansion with increased
competitiveness
                                              BRAZIL
     PVC Expansion
    Operational start-up : 1st half 2012
    • Expansion of 200 kton/y in PVC capacity in Alagoas
    • Investments of US$470 million
    • Expected NPV ~US$450 million
    • Disbursements already in 2Q10
    • Support for Brazil’s infrastructure projects




  Comperj and Suape

   • Braskem participation in Suape Project (textile       New Projects

      complex) and Comperj (1st and 2nd Generation)        Industrial Assets

      under analysis.                                      Projects with Petrobras




Source: Braskem                                                                      17
Expansion with increased competitiveness
                                            LATIN AMERICA

    Mexico: Ethylene XXI Project
   Operational start-up: early 2015
   • JV between Braskem (65%) and the Mexican group
     IDESA (35%) for the purchase of ethane from PEMEX
   • Integrated project: 1 Mty of ethylene and 1 Mty of PE
   • Investment estimated at up to US$2.5 billion over 5
     years (project finance)
   • Financial Advisor hired: Sumitomo Bank
   • Structuring of the participation of ECAs and MLAs1



                                                                               New Projects

                                                                               Industrial Assets

                                                                               Projects with Petrobras




                            1   Export Credit Agencie (ECA) and Multilateral Agencie (MLA)
Source: Braskem                                                                                          18
Mexican Polyethylene Market
                    Currently deficit above 1.1 MM ton (2010)

                    Estimated deficit in 2015 (project start-up): 1.7 MM ton

                    Annual Growing rate foreseen: 4.5 % (Period: 2010-2025 )

                                                        Polyethylene Mexican Market
              4.0
                                                                                                                                                  3.4   3.5
              3.5                                                                                                                     3.2   3.3
                                                                                                                          3.0   3.1
                                                                                                           2.8    2.9
              3.0                                                                              2.6   2.7
                                                                                         2.5
                                                                                   2.3
 MMton/year




              2.5                                                            2.2
                                                                       2.0
                                                         1.8     1.9                                                                                    2.7
              2.0               1.7   1.7   1.6   1.7                                                                                 2.4   2.5   2.6
                    1.5   1.6                                                                                     2.1     2.2   2.3
                                                                                               1.8   1.9   2.0
              1.5                                                                  1.5   1.7
                                                                       1.3   1.4
                                                         1.1     1.1
                                1.1   1.2   1.1   1.0
              1.0   1.1   1.1

              0.5                                                            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
                                0.5         0.6   0.7    0.7     0.8   0.8
                    0.4   0.5         0.5
               -
                    2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

                                                        Supply                      Deficit                      Demand




                                                                                                                                                              19
Mexican Converters Industry
                 3,500 plastics converters
                 84% small and micro companies
                 More than 5 MM ton of plastics conversion, with 1.8 MM of Polyethylene
                 Main application: Packaging (48% market)
                 Sales to distributors: Braskem ≠ Pemex

       Converters Profile
                    Big
                   Grandes
      Médias
      Medium         4%
           12%




Pequenas
 Small
  24%                            Micros
                                  60%




                                          Total: 3,500 Converters
                                                                                          20
Consolidated project pipeline


                                                                          PeruProj.
                                                                          (+ 600 to 1,000 kty ethylene/PE)
                                              Ethylene XXI - Mexico       Polimerica – Venezuela
                                              (+ 1,000 kty ethylene       (+ 1,300 kty ethylene and
                                              and + 1,000 kty PE)         + 1,000 kty PE)
             Green PE                         Propilsur – Venezuela       Suape
             (+ 200 kty ethylene)             (+ 300 kty PP)              Comperj
             PVC Expansion
             (+ 200 kty)




                  2010 - 2012                   2013 - 2015              Projects under evaluation


                          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
Source: Braskem                                                                                              21
Investments in 2010 amount to
R$1.6 bi
                   Investments
                     R$ million


                                  1,617
                                   56     Braskem America
                                   35     Venezuela

                                   360    Quattor

                                   10     Quantiq
                                   72     Mexico

                                   254    Green PE


             621                   192    Equipment Replacement
              7                    52     Capacity Increase / PVC Alagoas
             119
              7
                                   317    Maintenance
             251

              63
                                   61     Productivity                      New Projects
                      8
             101                   208                                      Industrial Assets
              21                          Others
              44
                                                                            Projects with Petrobras
            1S10                  2010e

Source: Braskem
                                                                                                      22
Agenda

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        23
Braskem consolidated
  Financial Indicators:
                                    2009           LTM Jun/10
 R$ billion                      Consolidated      Consolidated                Potential for margin gains
                                                                                 Stabilization in raw material
 Net Revenue                         21.5              24.8
                                                                                 supplies;
 EBITDA                               3.2               3.8                      Margin equalization Braskem
                                                                                 (17%) vs. Quattor(12%) in
                                     3.46x             2.84x
                                                                                 1H10;
 Net Debt/EBITDA
                                                                                 Substitution of 1H09 by 1H10
 # Plants:                            29                29



                                                             80% Capacity
                                                                                    6,460
                                                               Increase
                                                                                     510


                                                                       3,595         1,965
                                                                        510                        PVC
       Industrial Assets
                                                                                                   PP
                                                                       1,090
                                                                                                   PE

                                                                                     3,035
                                                                       1,995
Listed on three stock exchanges: BM&FBovespa, NYSE and Latibex
Source: Braskem                                                                                                  24
Raw material matrix
   Diversification to compete globally
   Raw Material Profile* (2009)                           Braskem Post-Acquisitions*                          Braskem Post-Projects*

                                         8%                                                                                3%
                         30%
           37%
                                                                         13%          Implementation of
                                                                                      Project Pipeline**                            24%

           17%                                                                 18%
                                        92%
                          56%                                                                                        58%              15%
                                                                   69%
           46%

                         14%


     Quattor        Sunoco       Braskem                  More balanced and diversified supply of raw materials
       Liquid (2)     Refinery propylene        Gas (1)   Competitive natural gas price vs. international reference prices
      Ethanol




    Propane                                                                Naphtha / Condensate
        USGC reference to competitive prices                                   ~70% of naphtha supplied by Petrobras with
                                                                               competitive price formula
    Natural Gas                                                                30% direct imports from various international suppliers
        100% Petrobras supply with competitive prices versus
        international prices

    Ethanol

                                                                                     *Based on resin-production capacity. Sunoco buys propane directly
(1) Ethane, Propane and HLR; (2) Naphtha and condensate                              ** Considering the Mexico Project and Green PE                      25
Strong cash generation and
 competitive margins
R$ million
                                                       2Q10      1Q10      2Q09      Change      Change
   Key Indicators
                                                        (A)       (B)       (C)      (A)/(B)     (A)/(C)     Strong cash generation
   Net Revenue                                          6,539     6,272     4,996         4%         31%     mainly due to the
   EBITDA                                               1,042      909       735         15%         42%
                                                                                                             improvement on Quattor
                                                                                                             operational performance
   EBITDA Margin                                        15.9%     14.5%     14.7%     1.4 p.p.    1.2 p.p.
                                                                                                             Productivity gains already
                                                                                                             reflecting on 2nd quarter
                                                       2Q10      1Q10      2Q09      Change      Change
                                                                                                             result
   Financial Result
                                                        (A)       (B)       (C)      (A)/(B)     (A)/(C)
                                                                                                             Focus on capturing
   Net Financial Result                                  (575)     (880)    1,379       -35%       -142%
                                                                                                             synergies
   Foreign Exchange (FX) and Monetary Variation (MV)     (216)     (374)    1,666       -42%       -113%
   Financial Result excluding FX and MV                  (359)     (506)     (287)      -29%         25%     Significant improvement on
   Interest Expenses / Revenues Net                      (165)     (129)     (153)       28%          8%
                                                                                                             results after financial crisis
   Tax Assets and Liabilities                             (40)     (287)      (30)      -86%         34%
   Others                                                (155)      (90)     (105)       71%         47%




Source: Braskem                                                                                                                           26
Demand stability in 2Q10 reflects
 sectors good performance
Apparent Consumption (Kton)                                                  +10%
                                                                                    4,720
                                               4,173              4,291
                        4,048




                                                                                            1H10



                         2007                  2008                   2009          2010e

                                      Food
                                      Retail
                                                                                                   Domestic demand performance
                                      Hygiene and Cleaning                                         by sector:
                                      Agribusiness                                                       Relevant
                                      Consumer Goods                                                     Moderate
                                      Construction                                                       Low / Retraction
                                      Automotive
                                      Electric and Electronic


Source: Abiquim, Braskem estimates, Tendência Report, IBGE, Anfavea                                                              27
Historical Prices

    PE prices evolution (100 basis)                                                           PP prices evolution ( 100 basis)

                                                                                              130
    140
    130                                                                                       120
    120                                                                                       110
    110
                                                                                              100
    100
                                                                                              90
     90
     80                                                                                       80




                                                                                                              Jun-09
                                                                                                                  09




                                                                                                                                                                    Jun-10
                                                                                                                                                                        10
                                                                                                                       aug/09




                                                                                                                                                                             aug/10
                                                                                                                                         dec/09
                                                                                                    apr/09




                                                                                                                                                  feb/10


                                                                                                                                                           apr/10
                                                                                                                                oct/09
                   Jun-09
                       09




                                                                            Jun-10
                                                                                10
                            aug/09




                                                                                     aug/10
                                              dec/09
          apr/09




                                                       feb/10


                                                                   apr/10
                                     oct/09




                    International Market                        Brazilian Market                             International Market                    Brazilian Market




       Resins prices show signs of recovery in the international market

       Recovery expected already in August




Source: CMAI                                                                                                                                                                          28
Market trend

Braskem consolidated sales evolution of
                                                                                                  3Q10 trend in the Brazilian market
thermoplastic resins (1) – Brazilian market

                                                                                                      Volume Price Revenue         Cost
  Resins sales evolution (kton)




                                                                                            PP
                                                                                            PE
                                                                                            PVC


                                  1Q09   2Q09   3Q09   4Q09   1Q10       2Q10




Source: Braskem estimates and ABIQUIM.                        (1) 2009 and 1Q10 pro forma data.                                        29
Leverage ratio falls below 3x
for the first time since the acquisition
   In R$ million (06/30/10)
                                                                 Net Debt / EBITDA                             Net Debt / EBITDA
    Gross Debt: 14,384                                            (million of R$)                               (million of US$)
    Net Debt: 10,909                                                         -9%
                                                                3.12x                                        3.23x     -12%
    Average Term: 8.2 years                                                         2.84x                                     2.84x

   64% of debt is pegged to USD


                                                               Mar 10              Jun 10                   Mar 10            Jun 10
                                                                                      *    After capital increase of R$3.74 bi and
           3,475                                                                          disbursement of Quattor and Sunoco acquisitions



           1.197
                                                16%     16%
                                13%
                                         12%                                                                 12%
                                                2.346   2.346           9%          9%            9%
                                1.889
           2.278                        1.731                                                              1.631
                      4%                                                           1.299        1.315
                                                                   1.296
                      584

          06/30/10    2010      2011    2012    2013    2014        2015           2016/        2018/        2020
            Cash                                                                   2017         2019        onwards

               Invested in R$
              Invested in US$
                                                                                                                     Source: Braskem   30
Braskem: Ratings confirmed
  after acquisition
    RATING                       Post-Acquisitions
                                                                                        Upgrade Conditions:
                                                                                        ‣    Maintenance of high liquidity (cash or equivalents - stand-
                                                         +                                   by) above R$3 billion. Cash above R$3 billion since
  Ba3 BBB-                                                                                   Dec/2008.
                                                     -           Investment Grade
                    Jan/09          May/09               +
                                                                                        ‣    Capitalization of Braskem as pre-condition for acquisition.
  Ba1 BB+                                                                                    Shareholder movements;
                                                     stable
                              Mar/09                  -
                                             Jan&Feb/10                                 ‣    Successful integration with capture of synergies and
                                                                                             increase in cash generation;
  Ba2   BB        The acquisitions:                                                     ‣    Decrease in Net Debt/EBITDA ratio expected to 2.5x. In
                  ‣   Strengthened strategic positioning;                                    first post-acquisition quarter we already reduced this ratio
                                                                                             from 3.46x to 3.12x. In 2Q10 we reduced to 2.84x.
  Ba3 BB-         ‣   Increased # of plants, sites and geographic diversification;
                  ‣   Diversification of raw material mix;
                  ‣   More disciplined and less volatile domestic market ;
   B1   B+
                  ‣   High governance standards;
                  ‣   Petrobras participation.




                             2009            2010
                  Braskem Ratings (National Scale)                                     Braskem Ratings (Global Scale)
             Moody’s                                Aa2.br / Stable Outlook          Moody’s             Ba1 / Stable Outlook


              Fitch                                  AA / Stable Outlook             Fitch               BB+ / Stable Outlook

              S&P                                    AA+ / Stable Outlook            S&P                                    31
                                                                                                         BB+ / Stable Outlook

Source: Braskem
Agenda

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        32
Outlook on the global petrochemical
industry
   Ethylene: Operating rate 1H10
000 ton                                                                         Industry at 1H2010
20,000                     90              89                              89     Producers already responded to the
               84          86                                   86         84
                                       83            82
                                                                81
                                                                                  demand slowdown in 2Q10 by
15,000         79
                                                    77                            reducing the operating rates
10,000                                                                            Competitive cost base allows the US
 5,000
                                                                                  to operate at higher rates than other
                                                                                  regions
     0                                                                            Braskem back to operate at a rate
          Europe    N. America      Asia       M. East      World     Braskem     above world average in 2Q10
                    Capacity 2Q             Operating rate 2Q10 (%)
                                            Operating rate 1Q10 (%)
                                                                                Global Scenario
   Ethylene: Supply and Demand Balance                                            New capacity additions can lead to
000 ton                                                                           the closing down of non competitive
200,000
                                                            88.4
                                                                       90.5       assets on a permanent basis,
                                                 87.0
           83.8                     83.1
                                                                                  especially in Europe and US
150,000
                          80.4
                                                                                  Global economic outlook volatility
100,000                                                                           versus petrochemicals demand
 50,000                                                                           Expectation of improvement in the
                                                                                  industry profitability as of 2H11
     0
           2009       2010e         2011e       2012e      2013e       2014e
           Capacity               Demand            Operating Rate 2010e (%)


Source: CMAI                                                                                                              33
2010 Ethylene capacity additions

                                                  Additional                         Effective
    Region                  Company                                  Start up
                                                 Capacity 2010                     Capacity 2010*
  Middle East             Morvarid PC                 334             2Q10               208                        New players are located in
  Middle East                 RLOC                    975          2Q10 / 3Q10           650                        Middle East (38%) and Asia
  Middle East                 Kayan                   300             4Q10               300                        (59%)
  Middle East             Petro-Rabigh                325             1Q10               325
  Middle East                SHARQ                  1,100             2Q10               800                        Feedstock matrix of the
  Middle East                Yansab                   433             1Q10               108                        new capacities:51%
  Middle East               Borouge                   700             3Q10               650                        naphtha and 49% gas
     Asia               Baotou Shenhua                100             3Q10               100
     Asia             CNOOC & Shell PC                150             2Q10               150
                                                                                                                    Delays already reduced in
     Asia                 Dushanzi PC                 667             2009               667
                                                                                                                    18% the start up of new
                                                                                                                    capacity for the year
     Asia              Fujian Ref & Chem              533             2009               533
     Asia                Panjin Ethylene              450             2Q10               305                        A demand growth of 4.5
     Asia                     Secco                   150             2009               150                        million tons of ethylene is
     Asia              Shenyang Paraffin               87             2009                87                        expected in 2010, up by 4%
     Asia          SINOPEC/SABIC Tianjin PC          1,000         1Q10 / 3Q10           750                        compared to 2009
     Asia                     ZRCC                    750             2Q10               750
     Asia         JX Nippon Oil & Energy Corp.        220             3Q10               220                        Delays and learning curve
     Asia                   LG Chem                    75             2009                75                        from the commissioned
     Asia                     YNCC                     33             2009                33                        plants shall positively
     Asia                Shell Chemical               667             2Q10               667                        impact the 2010
     Asia                     MOC                     675             2Q10               675                        supply/demand balance
     Asia               PTT Polyethylene              917             3Q10               500
    Others                                            275                                275
   TOTAL                                            10,916                              8,978

                                                                       -18%

Source: CMAI / Parpinelli / Braskem Analysis        * Estimated data. Does not consider the plants operating rates and possible additional delays.   34
Brazil’s macroeconomic outlook
                                                                Annual real GDP growth

  • Brazil’s economy is still relatively closed, with exports    9,0%                                                7,8%
    corresponding to 14% of GDP, distributed among               8,0%
                                                                 7,0%                        6,1%
    various trade partners.
                                                                 6,0%                 4,7%                                                4,6%
                                                                        4,5%                                                4,5%   4,5%
                                                                 5,0%
                                                                               3,5%
  • Strong external solvency ratings and floating exchange       4,0%                                                5,2%
                                                                                                                            4,4%   4,3%   4,3%
                                                                 3,0%
    rate system curbed speculation against the BRL during                                             1,3%
                                                                 2,0%
    the crisis.                                                  1,0%                                        -0,2%
                                                                 0,0%

  • Brazil’s banking system is well capitalized and highly      -1,0%
                                                                        2004   2005   2006   2007     2008   2009    2010   2011   2012   2013
    regulated.
                                                                          Real GDP             On August 2010                On December 2009


  • Household consumption corresponds to 61% of GDP,
    while government consumption corresponds to 20%.
    GDP is highly influenced by consumer behavior, which          Average monthly income (March 2002 = base 100)
    has been driven by growth in average income levels.
                                                                 180
  • Brazil is still an unleveraged economy, but with             160
    growing access to credit (the ratio of available credit
    to GDP is currently 45% and is expected to increase to       140
    49% in 2010), which ultimately spurs consumption.            120

                                                                 100

                                                                  80



                                                                                                     Average Income
                                                                                                    Rendimento Médio
Source: Santander                                                                                                                                35
Brazil: Dynamic Market
  Still-low per-capita consumption



    Per-capita consumption of PE, PP and PVC (kg/person)
                                                                                                                                        63
                                                                                                                                        63
                                                                                                                                              57
                                                                                                                                             57



     Brazil:                                                                                                                                       41
                                                                                                                                                   41
                                                                     5.4%
                                                                     CAGR
                                                                                                                                                        28
                                                                                                                                                        28
                                                                                                                   21.9   22.7   22.2
                                                                                                                                 22.2
                                                                                                            20.2
                                                                                                18.7 18.0
                                                             16.6                 17.8   17.5
                                              15.4   16.2                16.1
                                       14.5
                     12.5    13.6
             11.1
     9.6




   1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

                                                        PE          PP          PVC


Source: CMAI, IBGE, Abiquim, Braskem                                                                                               * Compound annual growth rate   36
Consumer driven
 Braskem’s domestic sales breakdown in 1H10




                                         HYGIENE AND CLEANING
                                                                       COSMETICS AND PHARMACEUTICALS
                                CONSUMER GOODS             9%                AUTOMOTIVE
                                                                  3%
                                                   13%                 6%

                                     RETAIL
                                              6%
                                                                            14%     CONSTRUCTION



                                                                           3%      ELECTRIC AND ELECTRONIC
                            FOOD PACKAGING                                4%
                                               28%                      4%        INDUSTRIAL
                                                                   5%        INFRASTRUCTURE
                                                            4%2%       AGRIBUSINESS
                                                         OTHERS
                                                                  CHEMICALS AND AGROCHEMICALS




Source: Braskem / Abiquim                                                                                    37
Market development
               Construction of light slabs using                           Parts for tractors, harvesters and
               polypropylene spheres.                                      tools migrating to PE rotational
                                                                           molding.

BUBBLEDECK                                               Agro-machinery



                                                                          Substitutes concrete wells for a
               Project developed with Unipac and                          rotation-molded structure. Support from
               Toyota-Tsusho. Flooring that allows                        CNO and partners Asperbras, Fortlev and
               water permeability.                                        Brinquedos Bandeirante

CROSSWAVE
                                                       Manholes



               Substitution of asbestos by PP                             Substitution of fiberglass tanks for
               fibers with fiber-cement                                   volumes greater than 2,000 l.
               reinforcement.

FIBER-CEMENT                                             Large Tanks



               New washer molds, with PP cabinets                         Plastic silos for grain storage.
               (replacing steel) in final validation                      Partnership with Suzuki.
               stage.

TRAVELING                                              Silo Bags
BLOCK
                                                                                                                 38
Agenda

    Braskem
         A global player
         Acquisitions: opportunities and challenges
         Project pipeline: growth with value creation
         Braskem consolidated


    The petrochemical industry



    Final considerations




                                                        39
Why Braskem?
Pr/share                      BRKM5 Performance
35

30                                                                                        Consolidated (R$ billion)             2Q10           Multiple
25                                                                                                             EBITDA LTM               3.8            3.8
20                                                                                                      Synergies to 2012                              4.2
                                                                                      +             Market Capitalization            13.3            18.8
15
                                                                                                                        EV           24.2            29.7
10
                                                                                                                EV/EBITDA              6.3x        7.0x**
5                                                                                                         Price per share           16.6*            23.6
0                                                                                                       Proj. NPV to 2012                     > R$1.12 bi
 jan-02    jan-03   jan-04   jan-05    jan-06   jan-07     jan-08   jan-09   jan-10            Value added by projects to
                                                                                                             share price                             1.40
                                  R$                     US$
                                                                                          *BRKM5 as of 9/29/10        ** Peer Multiple 2010.
      Largest thermoplastic resin producer in the Americas                                Source: Bloomberg.
      Leader of important projects in Latin America with
      competitive raw materials
      Emerging consumer market with potential per-capita growth                                     Huge potential for value creation
      as additional driver
                                                                                                         EBITDA increase
      Above-peer profitability
      Access to one of the world’s largest consumer markets                                              EV/EBITDA multiple below
      following the U.S. acquisition                                                                     peers’ multiple (6-7x)
      Successful trajectory of organic growth and acquisitions
      Shareholders hold long-term view with strategic synergies
      for growth and value creation
      Leader in green chemicals
                                                                                                                                                             40
Meeting with
 Investors
Appendix
Global Ethylene supply/demand

                                Global ethylene supply / demand (Mton/y)

                                                                                                 151          154
                                                          143           146          146
                                                                                                                     140
                             130             133                                                        133
                 125                                                                       127
                                                                              121
                       114          111            111           115


                                                                                                                           Supply
                                                                                                                           Demand




                 2007        2008           2009          2010         2011         2012         2013         2014




Source: CMAI, June 2010                   * Not considering additional delays and shutdowns                                         43
Global Resins supply/demand
                            Global Resins (PE, PP, PVC) Supply (Mton/y)
                                                                             215      219
                                                            205     209
                                                    198
                                    173     182
                            168                                              51       52
                                                    47      49      51
                                    44      45
                            41                                                               PVC
                                                            64      64       66       68
                                            55      60                                       PP
                            49      51
                                                                                             PE
                            78      79      83      90      92      93       97       99


                          2007    2008    2009    2010    2011    2012     2013     2014

                           Global Resins (PE, PP, PVC) Demand (Mton/y)
                                                                              181      191
                                                            161      172
                            149                     152
                                    141     143                              41       43
                                                            37      39
                           35                       34                                        PVC
                                   32      32                                         60
                                                                    53       57               PP
                           44                       47      50
                                   43      44
                                                                                              PE

                           69                       71      75      79       83       88
                                   66      67


                          2007    2008    2009    2010    2011    2012     2013     2014
Source: CMAI, June 2010                                                                             44
                                                                                                    44
Resins demand by region
                          2010 Resins (PE, PP, PVC) Demand by region

                                                           Africa
                                                            3%
                                      China                             Europe
                                      27%                                18%




                                                                              North America
                                                                                  17%
                              Asia ex-China
                                   23%
                                                                       South America
                                                                            6%
                                                         Middle East
                                                            6%



The Brazilian demand for resins represents 3% of global demand
Source: CMAI, June 2010                                                                       45
Ownership Structure
  Leveraging relationship with Petrobras
                                                                        % Capital Votante % Capital Total


              Odebrecht*                     Petrobras*            BNDESPAR                  Outros (1)
             50,1 % 38,3%                    47,0% 35,8%            0,0% 5,5%               2,9% 20,2%

                                                                                       (1) Does not include shares held in treasury




    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
                                           – Access to competitive raw materials
                                           – Improved value chain competitiveness
                                 •        Corporate governance standards: Shareholders’ agreement


Source: Braskem, as of August 31, 2010.                                                                                               46
Corporate Governance post acquisition
  Odebrecht as the controlling shareholder, with all results fully consolidated,
  reinforcing Braskem’s condition as a publicly traded private company;
  Braskem executives entrusted with the Company’s management and business plan,
  approved by a simple majority of the Board of Directors;
  Sharing of strategic decisions, with consensus approval by Board of Directors, including
  for:
   –   divestments greater than 10% of long-term assets
   –   acquisitions greater than 30% of long-term assets

  Board of Directors with 11 members, out of which 1 is independent:
   –   Odebrecht nominates Chairman of the Board, CEO and CFO
   –   Petrobras nominates Vice Chairman of the Board, the Chief Investments and Portfolio
       Officers

  Investment decisions based on objective criteria for returns and profitability, such as
  project IRR and NPV.
  Clear financial policy that stipulates the strict conditions, with derivatives used solely
  for hedging;
  Being the sole vehicle for petrochemicals investments gives Braskem the right to:
   -   Act as the leader for all investments identified by Petrobras that are of interest to
       Braskem;
   -   If not interested, the right to sell the products.
                                                                                               47
Increase in Quattor capacity operating
rate positively impacted 2Q10
         Braskem consolidated operating rate                        %

                  Ethylene               Polyethylene             Polypropylene                              PVC

             92%*            89%                                                                    95%      98%
                                                                                                                     87%
                      84%               81%* 76%     83%          83%     79%      81%




            2Q09 1Q10 2Q10              2Q09 1Q10 2Q10           2Q09 1Q10 2Q10                    2Q09 1Q10 2Q10



                  Quattor better performance:
                       12 pp growth in ethylene operating rate – 83% in 2Q10 versus 71% in 1Q10
                       15 pp growth in PE operating rate – 76% in 2Q10 versus 61% in 1Q10
                  Crackers and 2nd generation plants, in general, show recovery of operating level in 2Q10
                  Scheduled shutdown in Camaçari affected PVC operating rate in 2Q10




Source: Braskem                                                         * 2009 data does not include the 200 kton expansion in Quattor 48
World indicative ethylene cash costs




Source: CMAI                           49
Revenues breakdown – 2Q10

                                         Net Revenue by Product(1)
                                                    (2Q10)
                                                   Others 7%
                                         Fuel 4%
                                   ETBE 2%
                               Cumene 3%

                               BTX* 8%


                     Butadiene 4%

                       Propylene 4%                                       Resins 62%

                               Ethylene 5%



                  1 Does notinclude nafta/ condensate/crude oil processing and QuantiQ sales
                  * Benzene, Toluene, Paraxylene and Orthoxylene




Source: Braskem                                                                                50
COGS breakdown – 2Q10

                                               COGS 2Q10 (1)
                                        Others 1.0% Deprec / Amort

                              Services 1.7%             6.3%

                            Labor 3.5%

                    Other Variable
                      Costs 6.9%
                  Natural Gas 2.5%
                   Electric Energy
                        4.6%                                                  Naphtha 56.6%


                            Gas 16.8%




                   1Does not include naphtha / condensate / crude oil processing and costs of
                   Quantiq




Source: Braskem                                                                                 51
Exports Destination – 2Q10

                           Exports Destination (2Q10)

                                  Asia 6%   Others 1%


                     Europe 16%

                                                              North
                                                            America 44%




                       South
                     America 27%

                                                Central
                                               America 6%

                  The Export Market represents 32% of Company’s Net Revenue.




Source: Braskem                                                                52
EBITDA Trends
 1Q10 Pro Forma vs. 2Q10
   The better domestic prices through May, following the                                                            R$ million
   international market, offset the higher raw material prices in
   2Q10
                                                                                                    FX Impact on
                                                                                        26          Costs


                                                                                      FX Impact
                                                                                                      -38
                                                                                    on Revenue

                             213
                                           (5)                                                                     1,042
                                                        (12)
                                                                        (20)                 (43)
                  909




              EBITDA     Contribution    Volume          FX         Fixed Costs +         Others               EBITDA
               1Q10        Margin                                       SG&A                                    2Q10




Source: Braskem                                                                                                                  53
Outstanding Bonds & Outstanding Ratings
                                               Coupon          Yield *
Outstanding Bonds              Maturity
                                               (% p.a.)       (% p.a.)
US$250 MM                       Jan/2014         11.750         3.8

US$250 MM                       Jun/2015         9.375          4.6

US$275 MM                       Jan/2017         8.000          5.6

US$500 MM                       Jun/2018         7.250          5.9

US$750 MM                      May/2020          7.000          6.0

US$150 MM                      Perpetual         9.750          9.5

US$200 MM                      Perpetual         9.000          8.9

US$450 MM                      Perpetual         7.375          7.4
* As of September, 30th

                                       Corporate Credit Rating – Global Scale

 Agency                       Rating              Outlook         Reviewed in

 Fitch Ratings                 BB+                 Stable             03/02/2009

 S&P                           BB+                 Stable             05/28/2009

 Moody’s                       Ba1                 Stable             05/21/2009

                                                                                   54
Source: Braskem / Bloomberg
Covenants
                                                                                      Net Debt / Ebitda (x)
                              RATIO

                       Net Debt / EBITDA                                              US$               R$
                                                                                      2.84              2.84
                              < 4.5X



                                                                                    Jun 10             Jun 10


              Facility                           Amount*             Jun 10            Currency           Type

              2010 and 2011
                                                 R$800 MM           R$500 MM                 R$        Incurrence*
              Debentures
              2014 Medium Term
                                                US$250 MM           R$250 MM                 R$        Incurrence*
              Notes
              Nippon Export and
                                                 US$80 MM           US$49 MM              US$          Maintenance
              Investment Insurance
              EPP (Export Pre-
                          Pre-
                                                US$725 MM          US$625 MM              US$          Maintenance
              Payment)
                  *The company is prevented from issuing any new debt for the period if it overcomes
                  the 4.5x Net debt / Ebitda ratio.

                                                                                                                     55
Source: Braskem
Applied Innovation and technology to
   strengthen value chain competitiveness
      Structured resource base to support client needs
                                                           Focus on product and
                                                           application
        Over US$ 330 million in R&D assets                 development
        More than 190 researchers                            18% of resin sales
                                                             derive from products
        8 pilot plants                                       developed in the last
                                                             three years
        More than 260 patents filed worldwide
                                                             Focus on clients’ end
        Partnership with universities and R&D centers in     users
        Brazil and abroad
                                                           Targeted initiatives for
                                                           breakthrough
                                                           technology
                                                             Intelligent packaging
                                                             Renewable products




                                                                                      56
                                                                                       56
Source: Braskem
Sustainable development


 Sustainable Development:

 A way of doing businesses to satisfy all                    Results
 stakeholders, today and in the future




 2002 Public Commitment                      Acknowledgements




                                                                  2005, 2006, 2007, 2008, 2009
                              Responsibe
                              Care          ISO 14.001*
                                            OHSAS 18.001**




                                                                                                 57
Health, Safety and Environmental Results
   Strong Improvement since 2002

 Total Recordable Cases Accidents Rate         Effluents                         Water Consumption
 (employees and contractors – 1.000.000 mh)    (m3/t)                            (m3/t)
                                                                     -54%                            -27%
      5.12                          -83%      2.71                              5.49
      2002                                    2002                              2002

                                 0.88                                1.23                         4.02
                                 2009           Brazil CI: 2.8       2009       World CI: 27.8    2009
      Brazil CI: 11.8


 Lost Time Cases Accidents Rate                 Solid & Liquid Residues           Energy Consumption
 (employees and contractors – 1.000.000 mh)     (kg/t)                            (GJ/t)

       0.85                         -79 %     9.93                   -72%      11.96                 -6%
       2002
                                              2002                             2002
                                  0.18                               2.76                        11.22
      World CI: 3.9               2009         Brazil CI: 11.9       2009       Brazil CI: 7.4   2009


                        2008 Brazilian Chemical Industry data (Abiquim 2009)
Source: Braskem         2007 World Chemical Industry data (ICCA, 2009)                                      58

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Apresentação para investidores btg pactual latin american ceo conference

  • 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 (June 30, 2010) 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 Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 3
  • 4. Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 4
  • 5. Braskem overview Leading thermoplastic company in the Americas Diversified portfolio of Industrial Assets petrochemical products, with focus 3 PP on PE, PP and PVC Annual capacity of 6,460 kton 31 facilities in Brazil and USA 1 PVC 1 Chlorine-soda Naphtha and gas based crackers 1 naphtha cracker Petrobras as the main supplier in Brazil 4 PE 1 PP Attractive project pipeline in Latin 1 PVC 1 Chlorine-soda America Listed in 3 stock exchanges: 1 gas cracker BM&FBovespa, NYSE and Latibex 1 PP 1 PE 100% tag along 1 naphtha cracker Key Financials LTM 2Q10 1 naphtha cracker 2 PP 3 PE Net Revenue: R$ 24.8 billion 1 ethanol cracker 5 PE EBITDA: R$ 3.8 billion 2 PP Source: Braskem 5
  • 6. Track record of success with clear objectives 6,460 Resins Capacity (kton/y) 3,595 Acquisitions 2,341 4,275 1,410 Organic Growth 520 1,821 2,185 2,185 Leader in the 54% capacity 80% capacityAmericas increase increase Leader in Latin America Acquisitions Petroquímica Quattor + 2020 Ipiranga, Copesul Triunfo Sunoco and Paulínia Politeno Polialden 2010 Trikem 2009 OPP 2008 2006 2007 2005 2004 2003 2002 2006 increase and disbursement of After R$3.74 bi capital Quattor and Sunoco acquisitions 2.76x 2,89x 2.98x 3.23x 2.84x 2Q10 Source: Braskem Net Debt/EBITDA (US$) 6
  • 7. Leader in the Americas and a top 8 global player in resins capacity 1st 6,460 Capacity in the Americas (kt/y) 510 ( 5,307 4,827 4,256 4th 1,230 627 2,915 3,595 3,082 1,731 510 2,340 2,311 4,077 1,090 1,210 1,915 4,200 PVC 3,035 822 875 950 2,525 2,340 2,311 PP 1,995 1,050 1,040 950 PE Braskem Exxon Dow Lyondell Braskem Formosa Shintech Chevron Quattor Sunoco post Mobil Basell Philips transactions 10,914 World Capacity (kt/y) 9,311 8,668 8th 7,749 7,284 7,109 6,541 6,460 4,681 4,564 12th 4,303 4,079 3,595 Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Braskem Total IPIC Reliance PetroChina Braskem Basell Mobil post transactions operations 7
  • 8. Consistent growth EBITDA 1 (US$ million) 23.1% 18.0% 16.9% 15.5% Nominal Capacity (kton) 19.3% 19.1% 14.4% Resins 14.1% 13.5% Ethylene CAGR: 21% CAGR: 19% 2,132 10,212 1,626 1,642 1,337 5,921 871 5,551 851 764 581 2,965 3,045 3,145 3,190 3,621 457 2002 2003 2004 2005 2006 2007 2008 2009 LTM 2010 2002 2003 2004 2005 2006 2007 2008 2009 EV 2.4 3.9 5.8 4.2 4.7 7.6 5.1 7.5 13.4 (US$ bi) EV/ 5.2x 6.7x 6.6x 5.0x 6.2x 4.6x 3.8x 4.8x 6.3x EBITDA Supported by higher production, market leadership, successful sales policies and industry consolidation 8 Source: Braskem 1 Pro-forma figures for 2009 and 1Q10: Braskem + Quattor + Sunoco 8
  • 9. Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 9
  • 10. Quattor acquisition Opportunities Bahia PP HOMO/COPO (1979) Capacity: 115 kty Asset concentration in Southeast Technology: Slurry Shell (~70% Brazilian resin consumption); Optimization of logistics distribution related to reduction in external storage; Camaçari Cracker (2005) Diversified RM matrix – balance Capacity: 520 kty ethylene Rio de Janeiro Technology: ABB Lummus – between naphtha-natural gas; ethane/propane Joint administration of raw material Mauá Duque de HDPE/LLDPE (2005) agreements; Paulínia Caxias Capacity: 540 kty Technology: Gas phase - Unipol Renegotiation of service and insurance PP HOMO/COPO (1992) contracts; Triunfo Capacity: 310 kty Unification of production and Cracker (1972) Technology: Bulk – Lipp Capacity: 700 kty ethylene* maintenance practices; Technology: ABB Lummus (naphtha) Unification of Technology and LDPE/ EVA (1972) Innovation centers; Capacity: 120 kty Reduction of working capital costs; São Paulo Technology: HP Autoclave HDPE/ LDPE (2008) Acquisition disbursement: Tax and logistical synergies; Capacity: 240 kty Technology: Slurry – Chevron Phillips R$647.3 million Organizational restructuring. LDPE (1965) Capacity: 140 kty Technology: Tubular Challenges PP HOMO/COPO (2003) Stability of raw material supplies; Capacity: 450 kty Technology: Spheripol Integration of cultures. *200 kty expansion effectively coming online in 2010 10
  • 11. Quattor - key indicators Operational Indicators Operating rate (%) 1Q10 2Q10 Ethylene 71%(1) 83%(1) PE 61% 76% Financial Indicators R$ million 1Q10 2Q10 Net Revenue 1,220 1,425 EBITDA 107 214 EBITDA Margin 8.8% 15.0% Outlook as of 2H10 Cabiúnas and Reduc refineries normalized operation enabled Riopol to have the best Main impact on operational profit in 2Q10 monthly operating rates in July: 86% for ethylene and 77% Increase in operating rates with better stability for PE; of raw material supply: supply from Mauá complex normalized in May 2010 Petrobras’ commitment to normalize supply to enable Riopol to operate at full capacity by October 2010. (1) Considering the 200 kty expansion 11
  • 12. Quattor synergies of R$ 400(a) million in EBITDA as of 2012 R$ million 43 79 400 Investment of R$ 350 million required to capture all 279 synergies Financial synergy NPV estimated in R$ 340 million Industrial Logistics Supply EBITDA Synergies Production mix Maximization of Joint management Seizing the cracker gains from product of feedstock streams distribution purchases (domestic and Renegotiation of Optimization of export markets) third-party inventories Optimization of agreements (a) modes Source: Braskem Recurring 12
  • 13. Braskem America (former Sunoco) R&T Center Pittsburgh, Opportunities PA Global-scale, state-of-the-art assets – technology and age similar to Brazil’s polypropylene (PP) assets; Development of a global production Neal, WV Marcus Hook, PA 1 PP base; 1 PP Consolidation of industrial assets; Competitive costs for some 70% of raw materials; La Porte, TX Platform for greenfield projects in 1 PP Latin America. Acquisition disbursement: US$350 million Challenges Knowledge of North American Financial Indicators distribution market; Add value to supplier ⇔ client chain R$ million 1H09 1H10 (substitute distributor); Net Revenue 764 1,109 Highly disperse market; EBITDA 88 106 Resumption in demand vs. uncertainty of economic recovery. 13
  • 14. Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 14
  • 15. Strategic Direction “BECOME THE GLOBAL SUSTAINABLE CHEMICAL LEADER, INNOVATING FOR BETTER SERVE THE PEOPLE”. 15
  • 16. Green Polyethylene First Green Plastic Certified in the World Location: Triunfo – RS POLYETHYLENE Capacity: 200 Kton/y Startup: September 2010 Investment: R$ 488 million Consumption of 460,000 m³ of ethanol per year 75% of the ethanol supply is already contracted Demand 3x higher than the installed capacity Main Clients and Partners Partnership in R&D – Renewable Polymers Green PE trading in Asia 16
  • 17. Expansion with increased competitiveness BRAZIL PVC Expansion Operational start-up : 1st half 2012 • Expansion of 200 kton/y in PVC capacity in Alagoas • Investments of US$470 million • Expected NPV ~US$450 million • Disbursements already in 2Q10 • Support for Brazil’s infrastructure projects Comperj and Suape • Braskem participation in Suape Project (textile New Projects complex) and Comperj (1st and 2nd Generation) Industrial Assets under analysis. Projects with Petrobras Source: Braskem 17
  • 18. Expansion with increased competitiveness LATIN AMERICA Mexico: Ethylene XXI Project Operational start-up: early 2015 • JV between Braskem (65%) and the Mexican group IDESA (35%) for the purchase of ethane from PEMEX • Integrated project: 1 Mty of ethylene and 1 Mty of PE • Investment estimated at up to US$2.5 billion over 5 years (project finance) • Financial Advisor hired: Sumitomo Bank • Structuring of the participation of ECAs and MLAs1 New Projects Industrial Assets Projects with Petrobras 1 Export Credit Agencie (ECA) and Multilateral Agencie (MLA) Source: Braskem 18
  • 19. Mexican Polyethylene Market Currently deficit above 1.1 MM ton (2010) Estimated deficit in 2015 (project start-up): 1.7 MM ton Annual Growing rate foreseen: 4.5 % (Period: 2010-2025 ) Polyethylene Mexican Market 4.0 3.4 3.5 3.5 3.2 3.3 3.0 3.1 2.8 2.9 3.0 2.6 2.7 2.5 2.3 MMton/year 2.5 2.2 2.0 1.8 1.9 2.7 2.0 1.7 1.7 1.6 1.7 2.4 2.5 2.6 1.5 1.6 2.1 2.2 2.3 1.8 1.9 2.0 1.5 1.5 1.7 1.3 1.4 1.1 1.1 1.1 1.2 1.1 1.0 1.0 1.1 1.1 0.5 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 0.5 0.6 0.7 0.7 0.8 0.8 0.4 0.5 0.5 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Supply Deficit Demand 19
  • 20. Mexican Converters Industry 3,500 plastics converters 84% small and micro companies More than 5 MM ton of plastics conversion, with 1.8 MM of Polyethylene Main application: Packaging (48% market) Sales to distributors: Braskem ≠ Pemex Converters Profile Big Grandes Médias Medium 4% 12% Pequenas Small 24% Micros 60% Total: 3,500 Converters 20
  • 21. Consolidated project pipeline PeruProj. (+ 600 to 1,000 kty ethylene/PE) Ethylene XXI - Mexico Polimerica – Venezuela (+ 1,000 kty ethylene (+ 1,300 kty ethylene and and + 1,000 kty PE) + 1,000 kty PE) Green PE Propilsur – Venezuela Suape (+ 200 kty ethylene) (+ 300 kty PP) Comperj PVC Expansion (+ 200 kty) 2010 - 2012 2013 - 2015 Projects under evaluation 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 Source: Braskem 21
  • 22. Investments in 2010 amount to R$1.6 bi Investments R$ million 1,617 56 Braskem America 35 Venezuela 360 Quattor 10 Quantiq 72 Mexico 254 Green PE 621 192 Equipment Replacement 7 52 Capacity Increase / PVC Alagoas 119 7 317 Maintenance 251 63 61 Productivity New Projects 8 101 208 Industrial Assets 21 Others 44 Projects with Petrobras 1S10 2010e Source: Braskem 22
  • 23. Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 23
  • 24. Braskem consolidated Financial Indicators: 2009 LTM Jun/10 R$ billion Consolidated Consolidated Potential for margin gains Stabilization in raw material Net Revenue 21.5 24.8 supplies; EBITDA 3.2 3.8 Margin equalization Braskem (17%) vs. Quattor(12%) in 3.46x 2.84x 1H10; Net Debt/EBITDA Substitution of 1H09 by 1H10 # Plants: 29 29 80% Capacity 6,460 Increase 510 3,595 1,965 510 PVC Industrial Assets PP 1,090 PE 3,035 1,995 Listed on three stock exchanges: BM&FBovespa, NYSE and Latibex Source: Braskem 24
  • 25. Raw material matrix Diversification to compete globally Raw Material Profile* (2009) Braskem Post-Acquisitions* Braskem Post-Projects* 8% 3% 30% 37% 13% Implementation of Project Pipeline** 24% 17% 18% 92% 56% 58% 15% 69% 46% 14% Quattor Sunoco Braskem More balanced and diversified supply of raw materials Liquid (2) Refinery propylene Gas (1) Competitive natural gas price vs. international reference prices Ethanol Propane Naphtha / Condensate USGC reference to competitive prices ~70% of naphtha supplied by Petrobras with competitive price formula Natural Gas 30% direct imports from various international suppliers 100% Petrobras supply with competitive prices versus international prices Ethanol *Based on resin-production capacity. Sunoco buys propane directly (1) Ethane, Propane and HLR; (2) Naphtha and condensate ** Considering the Mexico Project and Green PE 25
  • 26. Strong cash generation and competitive margins R$ million 2Q10 1Q10 2Q09 Change Change Key Indicators (A) (B) (C) (A)/(B) (A)/(C) Strong cash generation Net Revenue 6,539 6,272 4,996 4% 31% mainly due to the EBITDA 1,042 909 735 15% 42% improvement on Quattor operational performance EBITDA Margin 15.9% 14.5% 14.7% 1.4 p.p. 1.2 p.p. Productivity gains already reflecting on 2nd quarter 2Q10 1Q10 2Q09 Change Change result Financial Result (A) (B) (C) (A)/(B) (A)/(C) Focus on capturing Net Financial Result (575) (880) 1,379 -35% -142% synergies Foreign Exchange (FX) and Monetary Variation (MV) (216) (374) 1,666 -42% -113% Financial Result excluding FX and MV (359) (506) (287) -29% 25% Significant improvement on Interest Expenses / Revenues Net (165) (129) (153) 28% 8% results after financial crisis Tax Assets and Liabilities (40) (287) (30) -86% 34% Others (155) (90) (105) 71% 47% Source: Braskem 26
  • 27. Demand stability in 2Q10 reflects sectors good performance Apparent Consumption (Kton) +10% 4,720 4,173 4,291 4,048 1H10 2007 2008 2009 2010e Food Retail Domestic demand performance Hygiene and Cleaning by sector: Agribusiness Relevant Consumer Goods Moderate Construction Low / Retraction Automotive Electric and Electronic Source: Abiquim, Braskem estimates, Tendência Report, IBGE, Anfavea 27
  • 28. Historical Prices PE prices evolution (100 basis) PP prices evolution ( 100 basis) 130 140 130 120 120 110 110 100 100 90 90 80 80 Jun-09 09 Jun-10 10 aug/09 aug/10 dec/09 apr/09 feb/10 apr/10 oct/09 Jun-09 09 Jun-10 10 aug/09 aug/10 dec/09 apr/09 feb/10 apr/10 oct/09 International Market Brazilian Market International Market Brazilian Market Resins prices show signs of recovery in the international market Recovery expected already in August Source: CMAI 28
  • 29. Market trend Braskem consolidated sales evolution of 3Q10 trend in the Brazilian market thermoplastic resins (1) – Brazilian market Volume Price Revenue Cost Resins sales evolution (kton) PP PE PVC 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Source: Braskem estimates and ABIQUIM. (1) 2009 and 1Q10 pro forma data. 29
  • 30. Leverage ratio falls below 3x for the first time since the acquisition In R$ million (06/30/10) Net Debt / EBITDA Net Debt / EBITDA Gross Debt: 14,384 (million of R$) (million of US$) Net Debt: 10,909 -9% 3.12x 3.23x -12% Average Term: 8.2 years 2.84x 2.84x 64% of debt is pegged to USD Mar 10 Jun 10 Mar 10 Jun 10 * After capital increase of R$3.74 bi and 3,475 disbursement of Quattor and Sunoco acquisitions 1.197 16% 16% 13% 12% 12% 2.346 2.346 9% 9% 9% 1.889 2.278 1.731 1.631 4% 1.299 1.315 1.296 584 06/30/10 2010 2011 2012 2013 2014 2015 2016/ 2018/ 2020 Cash 2017 2019 onwards Invested in R$ Invested in US$ Source: Braskem 30
  • 31. Braskem: Ratings confirmed after acquisition RATING Post-Acquisitions Upgrade Conditions: ‣ Maintenance of high liquidity (cash or equivalents - stand- + by) above R$3 billion. Cash above R$3 billion since Ba3 BBB- Dec/2008. - Investment Grade Jan/09 May/09 + ‣ Capitalization of Braskem as pre-condition for acquisition. Ba1 BB+ Shareholder movements; stable Mar/09 - Jan&Feb/10 ‣ Successful integration with capture of synergies and increase in cash generation; Ba2 BB The acquisitions: ‣ Decrease in Net Debt/EBITDA ratio expected to 2.5x. In ‣ Strengthened strategic positioning; first post-acquisition quarter we already reduced this ratio from 3.46x to 3.12x. In 2Q10 we reduced to 2.84x. Ba3 BB- ‣ Increased # of plants, sites and geographic diversification; ‣ Diversification of raw material mix; ‣ More disciplined and less volatile domestic market ; B1 B+ ‣ High governance standards; ‣ Petrobras participation. 2009 2010 Braskem Ratings (National Scale) Braskem Ratings (Global Scale) Moody’s Aa2.br / Stable Outlook Moody’s Ba1 / Stable Outlook Fitch AA / Stable Outlook Fitch BB+ / Stable Outlook S&P AA+ / Stable Outlook S&P 31 BB+ / Stable Outlook Source: Braskem
  • 32. Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 32
  • 33. Outlook on the global petrochemical industry Ethylene: Operating rate 1H10 000 ton Industry at 1H2010 20,000 90 89 89 Producers already responded to the 84 86 86 84 83 82 81 demand slowdown in 2Q10 by 15,000 79 77 reducing the operating rates 10,000 Competitive cost base allows the US 5,000 to operate at higher rates than other regions 0 Braskem back to operate at a rate Europe N. America Asia M. East World Braskem above world average in 2Q10 Capacity 2Q Operating rate 2Q10 (%) Operating rate 1Q10 (%) Global Scenario Ethylene: Supply and Demand Balance New capacity additions can lead to 000 ton the closing down of non competitive 200,000 88.4 90.5 assets on a permanent basis, 87.0 83.8 83.1 especially in Europe and US 150,000 80.4 Global economic outlook volatility 100,000 versus petrochemicals demand 50,000 Expectation of improvement in the industry profitability as of 2H11 0 2009 2010e 2011e 2012e 2013e 2014e Capacity Demand Operating Rate 2010e (%) Source: CMAI 33
  • 34. 2010 Ethylene capacity additions Additional Effective Region Company Start up Capacity 2010 Capacity 2010* Middle East Morvarid PC 334 2Q10 208 New players are located in Middle East RLOC 975 2Q10 / 3Q10 650 Middle East (38%) and Asia Middle East Kayan 300 4Q10 300 (59%) Middle East Petro-Rabigh 325 1Q10 325 Middle East SHARQ 1,100 2Q10 800 Feedstock matrix of the Middle East Yansab 433 1Q10 108 new capacities:51% Middle East Borouge 700 3Q10 650 naphtha and 49% gas Asia Baotou Shenhua 100 3Q10 100 Asia CNOOC & Shell PC 150 2Q10 150 Delays already reduced in Asia Dushanzi PC 667 2009 667 18% the start up of new capacity for the year Asia Fujian Ref & Chem 533 2009 533 Asia Panjin Ethylene 450 2Q10 305 A demand growth of 4.5 Asia Secco 150 2009 150 million tons of ethylene is Asia Shenyang Paraffin 87 2009 87 expected in 2010, up by 4% Asia SINOPEC/SABIC Tianjin PC 1,000 1Q10 / 3Q10 750 compared to 2009 Asia ZRCC 750 2Q10 750 Asia JX Nippon Oil & Energy Corp. 220 3Q10 220 Delays and learning curve Asia LG Chem 75 2009 75 from the commissioned Asia YNCC 33 2009 33 plants shall positively Asia Shell Chemical 667 2Q10 667 impact the 2010 Asia MOC 675 2Q10 675 supply/demand balance Asia PTT Polyethylene 917 3Q10 500 Others 275 275 TOTAL 10,916 8,978 -18% Source: CMAI / Parpinelli / Braskem Analysis * Estimated data. Does not consider the plants operating rates and possible additional delays. 34
  • 35. Brazil’s macroeconomic outlook Annual real GDP growth • Brazil’s economy is still relatively closed, with exports 9,0% 7,8% corresponding to 14% of GDP, distributed among 8,0% 7,0% 6,1% various trade partners. 6,0% 4,7% 4,6% 4,5% 4,5% 4,5% 5,0% 3,5% • Strong external solvency ratings and floating exchange 4,0% 5,2% 4,4% 4,3% 4,3% 3,0% rate system curbed speculation against the BRL during 1,3% 2,0% the crisis. 1,0% -0,2% 0,0% • Brazil’s banking system is well capitalized and highly -1,0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 regulated. Real GDP On August 2010 On December 2009 • Household consumption corresponds to 61% of GDP, while government consumption corresponds to 20%. GDP is highly influenced by consumer behavior, which Average monthly income (March 2002 = base 100) has been driven by growth in average income levels. 180 • Brazil is still an unleveraged economy, but with 160 growing access to credit (the ratio of available credit to GDP is currently 45% and is expected to increase to 140 49% in 2010), which ultimately spurs consumption. 120 100 80 Average Income Rendimento Médio Source: Santander 35
  • 36. Brazil: Dynamic Market Still-low per-capita consumption Per-capita consumption of PE, PP and PVC (kg/person) 63 63 57 57 Brazil: 41 41 5.4% CAGR 28 28 21.9 22.7 22.2 22.2 20.2 18.7 18.0 16.6 17.8 17.5 15.4 16.2 16.1 14.5 12.5 13.6 11.1 9.6 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 PE PP PVC Source: CMAI, IBGE, Abiquim, Braskem * Compound annual growth rate 36
  • 37. Consumer driven Braskem’s domestic sales breakdown in 1H10 HYGIENE AND CLEANING COSMETICS AND PHARMACEUTICALS CONSUMER GOODS 9% AUTOMOTIVE 3% 13% 6% RETAIL 6% 14% CONSTRUCTION 3% ELECTRIC AND ELECTRONIC FOOD PACKAGING 4% 28% 4% INDUSTRIAL 5% INFRASTRUCTURE 4%2% AGRIBUSINESS OTHERS CHEMICALS AND AGROCHEMICALS Source: Braskem / Abiquim 37
  • 38. Market development Construction of light slabs using Parts for tractors, harvesters and polypropylene spheres. tools migrating to PE rotational molding. BUBBLEDECK Agro-machinery Substitutes concrete wells for a Project developed with Unipac and rotation-molded structure. Support from Toyota-Tsusho. Flooring that allows CNO and partners Asperbras, Fortlev and water permeability. Brinquedos Bandeirante CROSSWAVE Manholes Substitution of asbestos by PP Substitution of fiberglass tanks for fibers with fiber-cement volumes greater than 2,000 l. reinforcement. FIBER-CEMENT Large Tanks New washer molds, with PP cabinets Plastic silos for grain storage. (replacing steel) in final validation Partnership with Suzuki. stage. TRAVELING Silo Bags BLOCK 38
  • 39. Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 39
  • 40. Why Braskem? Pr/share BRKM5 Performance 35 30 Consolidated (R$ billion) 2Q10 Multiple 25 EBITDA LTM 3.8 3.8 20 Synergies to 2012 4.2 + Market Capitalization 13.3 18.8 15 EV 24.2 29.7 10 EV/EBITDA 6.3x 7.0x** 5 Price per share 16.6* 23.6 0 Proj. NPV to 2012 > R$1.12 bi jan-02 jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 Value added by projects to share price 1.40 R$ US$ *BRKM5 as of 9/29/10 ** Peer Multiple 2010. Largest thermoplastic resin producer in the Americas Source: Bloomberg. Leader of important projects in Latin America with competitive raw materials Emerging consumer market with potential per-capita growth Huge potential for value creation as additional driver EBITDA increase Above-peer profitability Access to one of the world’s largest consumer markets EV/EBITDA multiple below following the U.S. acquisition peers’ multiple (6-7x) Successful trajectory of organic growth and acquisitions Shareholders hold long-term view with strategic synergies for growth and value creation Leader in green chemicals 40
  • 43. Global Ethylene supply/demand Global ethylene supply / demand (Mton/y) 151 154 143 146 146 140 130 133 133 125 127 121 114 111 111 115 Supply Demand 2007 2008 2009 2010 2011 2012 2013 2014 Source: CMAI, June 2010 * Not considering additional delays and shutdowns 43
  • 44. Global Resins supply/demand Global Resins (PE, PP, PVC) Supply (Mton/y) 215 219 205 209 198 173 182 168 51 52 47 49 51 44 45 41 PVC 64 64 66 68 55 60 PP 49 51 PE 78 79 83 90 92 93 97 99 2007 2008 2009 2010 2011 2012 2013 2014 Global Resins (PE, PP, PVC) Demand (Mton/y) 181 191 161 172 149 152 141 143 41 43 37 39 35 34 PVC 32 32 60 53 57 PP 44 47 50 43 44 PE 69 71 75 79 83 88 66 67 2007 2008 2009 2010 2011 2012 2013 2014 Source: CMAI, June 2010 44 44
  • 45. Resins demand by region 2010 Resins (PE, PP, PVC) Demand by region Africa 3% China Europe 27% 18% North America 17% Asia ex-China 23% South America 6% Middle East 6% The Brazilian demand for resins represents 3% of global demand Source: CMAI, June 2010 45
  • 46. Ownership Structure Leveraging relationship with Petrobras % Capital Votante % Capital Total Odebrecht* Petrobras* BNDESPAR Outros (1) 50,1 % 38,3% 47,0% 35,8% 0,0% 5,5% 2,9% 20,2% (1) Does not include shares held in treasury 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 – Access to competitive raw materials – Improved value chain competitiveness • Corporate governance standards: Shareholders’ agreement Source: Braskem, as of August 31, 2010. 46
  • 47. Corporate Governance post acquisition Odebrecht as the controlling shareholder, with all results fully consolidated, reinforcing Braskem’s condition as a publicly traded private company; Braskem executives entrusted with the Company’s management and business plan, approved by a simple majority of the Board of Directors; Sharing of strategic decisions, with consensus approval by Board of Directors, including for: – divestments greater than 10% of long-term assets – acquisitions greater than 30% of long-term assets Board of Directors with 11 members, out of which 1 is independent: – Odebrecht nominates Chairman of the Board, CEO and CFO – Petrobras nominates Vice Chairman of the Board, the Chief Investments and Portfolio Officers Investment decisions based on objective criteria for returns and profitability, such as project IRR and NPV. Clear financial policy that stipulates the strict conditions, with derivatives used solely for hedging; Being the sole vehicle for petrochemicals investments gives Braskem the right to: - Act as the leader for all investments identified by Petrobras that are of interest to Braskem; - If not interested, the right to sell the products. 47
  • 48. Increase in Quattor capacity operating rate positively impacted 2Q10 Braskem consolidated operating rate % Ethylene Polyethylene Polypropylene PVC 92%* 89% 95% 98% 87% 84% 81%* 76% 83% 83% 79% 81% 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10 Quattor better performance: 12 pp growth in ethylene operating rate – 83% in 2Q10 versus 71% in 1Q10 15 pp growth in PE operating rate – 76% in 2Q10 versus 61% in 1Q10 Crackers and 2nd generation plants, in general, show recovery of operating level in 2Q10 Scheduled shutdown in Camaçari affected PVC operating rate in 2Q10 Source: Braskem * 2009 data does not include the 200 kton expansion in Quattor 48
  • 49. World indicative ethylene cash costs Source: CMAI 49
  • 50. Revenues breakdown – 2Q10 Net Revenue by Product(1) (2Q10) Others 7% Fuel 4% ETBE 2% Cumene 3% BTX* 8% Butadiene 4% Propylene 4% Resins 62% Ethylene 5% 1 Does notinclude nafta/ condensate/crude oil processing and QuantiQ sales * Benzene, Toluene, Paraxylene and Orthoxylene Source: Braskem 50
  • 51. COGS breakdown – 2Q10 COGS 2Q10 (1) Others 1.0% Deprec / Amort Services 1.7% 6.3% Labor 3.5% Other Variable Costs 6.9% Natural Gas 2.5% Electric Energy 4.6% Naphtha 56.6% Gas 16.8% 1Does not include naphtha / condensate / crude oil processing and costs of Quantiq Source: Braskem 51
  • 52. Exports Destination – 2Q10 Exports Destination (2Q10) Asia 6% Others 1% Europe 16% North America 44% South America 27% Central America 6% The Export Market represents 32% of Company’s Net Revenue. Source: Braskem 52
  • 53. EBITDA Trends 1Q10 Pro Forma vs. 2Q10 The better domestic prices through May, following the R$ million international market, offset the higher raw material prices in 2Q10 FX Impact on 26 Costs FX Impact -38 on Revenue 213 (5) 1,042 (12) (20) (43) 909 EBITDA Contribution Volume FX Fixed Costs + Others EBITDA 1Q10 Margin SG&A 2Q10 Source: Braskem 53
  • 54. Outstanding Bonds & Outstanding Ratings Coupon Yield * Outstanding Bonds Maturity (% p.a.) (% p.a.) US$250 MM Jan/2014 11.750 3.8 US$250 MM Jun/2015 9.375 4.6 US$275 MM Jan/2017 8.000 5.6 US$500 MM Jun/2018 7.250 5.9 US$750 MM May/2020 7.000 6.0 US$150 MM Perpetual 9.750 9.5 US$200 MM Perpetual 9.000 8.9 US$450 MM Perpetual 7.375 7.4 * As of September, 30th Corporate Credit Rating – Global Scale Agency Rating Outlook Reviewed in Fitch Ratings BB+ Stable 03/02/2009 S&P BB+ Stable 05/28/2009 Moody’s Ba1 Stable 05/21/2009 54 Source: Braskem / Bloomberg
  • 55. Covenants Net Debt / Ebitda (x) RATIO Net Debt / EBITDA US$ R$ 2.84 2.84 < 4.5X Jun 10 Jun 10 Facility Amount* Jun 10 Currency Type 2010 and 2011 R$800 MM R$500 MM R$ Incurrence* Debentures 2014 Medium Term US$250 MM R$250 MM R$ Incurrence* Notes Nippon Export and US$80 MM US$49 MM US$ Maintenance Investment Insurance EPP (Export Pre- Pre- US$725 MM US$625 MM US$ Maintenance Payment) *The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / Ebitda ratio. 55 Source: Braskem
  • 56. Applied Innovation and technology to strengthen value chain competitiveness Structured resource base to support client needs Focus on product and application Over US$ 330 million in R&D assets development More than 190 researchers 18% of resin sales derive from products 8 pilot plants developed in the last three years More than 260 patents filed worldwide Focus on clients’ end Partnership with universities and R&D centers in users Brazil and abroad Targeted initiatives for breakthrough technology Intelligent packaging Renewable products 56 56 Source: Braskem
  • 57. Sustainable development Sustainable Development: A way of doing businesses to satisfy all Results stakeholders, today and in the future 2002 Public Commitment Acknowledgements 2005, 2006, 2007, 2008, 2009 Responsibe Care ISO 14.001* OHSAS 18.001** 57
  • 58. Health, Safety and Environmental Results Strong Improvement since 2002 Total Recordable Cases Accidents Rate Effluents Water Consumption (employees and contractors – 1.000.000 mh) (m3/t) (m3/t) -54% -27% 5.12 -83% 2.71 5.49 2002 2002 2002 0.88 1.23 4.02 2009 Brazil CI: 2.8 2009 World CI: 27.8 2009 Brazil CI: 11.8 Lost Time Cases Accidents Rate Solid & Liquid Residues Energy Consumption (employees and contractors – 1.000.000 mh) (kg/t) (GJ/t) 0.85 -79 % 9.93 -72% 11.96 -6% 2002 2002 2002 0.18 2.76 11.22 World CI: 3.9 2009 Brazil CI: 11.9 2009 Brazil CI: 7.4 2009 2008 Brazilian Chemical Industry data (Abiquim 2009) Source: Braskem 2007 World Chemical Industry data (ICCA, 2009) 58