1. Third Quarter 2002 Earnings
A World Class Brazilian Petrochemical Company
A World Class Brazilian Petrochemical Company
José Carlos Grubisich
Paul Altit
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2. Disclaimer – forward looking statements
This presentation includes forward looking statements. Such
information is not merely based on historical fact but also reflects
management’s objectives and expectations. The words "anticipate",
“wish", "expect", “foresee", “intend", "plan", "predict", “forecast",
“aim" and similar words, written and/or spoken, are intended to identify
affirmations which, necessarily, involve known and unknown risks.
Known risks include uncertainties which include, but are not limited to
price and product competition, market acceptance of products, the
actions of competitors, regulatory approval, currency type and
fluctuations, regularity in the sourcing of raw materials and in
operations, among others. This presentation is based on events up to
November 22, 2002 and Braskem is not liable to update the contents in
the light of new information and/or future events.
Braskem takes no responsibility for transactions or investment
decisions made on the basis of information contained in this
presentation.
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3. Nine-month results through September 30, 2002:
Criteria Adopted in the Pro-Forma results:
• The financial information for the companies comprising the Braskem
group is considered as if these companies had been part of the
corporate structure since the beginning of 2002.
• The companies that comprise Braskem and are 100% consolidated in
the result are: Braskem pp dita; OPP; Trikem; Polialden and
Nitrocarbono;
• The effects of the proportional consolidation of Braskem’s investments
in Politeno and Copesul pursuant to CVM 247 are excluded. These
investments are recognized in the Equity Income account.
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4. Braskem – The largest Latin American petrochemical company:
13 Plants in the main industrial centers:
Alagoas PVC
PVC
Camaçari
Clorine Soda
Clorine Soda
São Paulo
HDPE
HDPE
LLDPE
LLDPE
Basic
Basic Aratu
Aratu
Triunfo Petrochemical Caprolactam
Petrochemical Caprolactam Port
Port
Complex
Complex Terminal
Terminal
Assets with a replacement LDPE
LDPE
value of ~ US$ 4.5 Bi,
excluding investments in Basic
Basic HDPE
HDPE
Copesul and Politeno Petrochemica
Petrochemica PP
PP
Complex
Complex
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5. Positive Petrochemical Scenario – 2003 / 2007:
! Low sector margins inhibited investment in new capacity;
! Gradual transition to world economic recovery;
! Gradual stabilization of oil prices (from US$18.0/bl to US$ 22.0/bl);
! Naphtha : reduction in prices to between US$ 190/t and US$ 210/t;
! Capacity utilization levels and prices: gradual recovery reaching maximum profitability
(“fly-up”) in 2005;
! Brazil – gradual recovery in economic growth (approx. 3% annually) and in the domestic
thermoplastics market. New opportunities for consolidation.
The next cycle could be one of the best periods for the sector
5 Source: international consulting firms

6. Braskem - Market – Sales Volume (kton):
PRINCIPAL PRODUCTS 9M 02 9M 01 Var. (%)
ETHYLENE 708,833 800,981 - 12%(*)
TOTAL THERMOPLASTICS 1,143,603 1,095,969 + 4%
PE 494,217 482,181 + 2%
PVC 297,691 292,338 + 2%
PP 307,489 281,825 + 9%
PET 44,206 39,626 + 12%
(*) Maintenance and modernization stoppage at the Pyrolysis Plant #1 at the Basic Petrochemicals
Complex, Camaçari (Ba)
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7. Braskem - Market – Net Revenues (R$ million):
Business Units 2001 2002 Variation(%)
Domestic Market 3,484 3,768 8%
Basic Raw Material 1,353 1,505 11%
Polyolefins 1,184 1,303 10%
Vinyls 707 701 -1%
Bus. Development 240 259 8%
Export Market 783 1.126 44%
Total Net Sales 4,266 4,894 15%
Net Revenues per BN
(Domestic Market)
Basic raw material
7%
Polyolefins
19%
40% Vinyls
Bus. Development
35%
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8. Braskem – Industrial Performance - Production (kton):
PRINCIPAL PRODUCTS 9M 02 9M 01 Var. (%)
ETHYLENE 703,840 805,183 - 13% (*)
TOTAL TERMOPLASTICS 1,099,964 1,105,426 0%
PE 484,459 497,782 - 3% (*)
PVC 273,919 265,345 + 3%
PP 301,501 290,915 + 4%
PET 40,085 51,384 - 22% (*)
(*) Maintenance and modernization stoppage at the Pyrolysis Plant #1 at the Basic Petrochemicals
Plant, Camaçari (Ba)
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9. Braskem – Industrial Performance – Average Utilization Rates:
PRODUCTS 9M 02 9M 01 Oct/02
ETHYLENE 79% (*) 90% 102%
TOTAL THERMOPLASTICS 83% 81% 95%
PE 80% (*) 79% 91%
PVC 82% 79% 95%
PP 89% 86% 98%
(*) Maintenance and Modernization Stoppage at the Pyrolysis Plant #1 at the Basic Petrochemicals
Complex, Camaçari (Ba)
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10. Braskem – Operating Results - COGS (9M02):
Depreciation 6% Personnel 4%
Electric Energy 2%
Others 24%
Naphtha 64%
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11. Braskem – Operating Results - EBITDA (9M02):
R$ million
EBITDA – 2002
(Quaterly)
400 367
315
300
238
200
100
1Q 2Q 3Q
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12. Braskem – Variation in Operating Income * (9M02):
109 (470)
540 Inflation (IGP-M) = 13.3%; Reclassifications
(R$ 10 MM) and Integration Process (R$15
MM)
Insurance; Depreciation (transf.
Other Oper. (63) from fixed assets in progress)
Rev./Exp.
(30)
Variable Costs (23)
307 (14)
816
SG&A **
Average
Price Fixed C./
461 Deprec. Total
** Not including depreciation Sales
Volume
Participation in Deprec./
Controled/Associated Amort.
Companies Expenses
9M01 * Operating Income = Operating Profit - Net. Fin. Res. + S/h. Equity 9M02
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13. Braskem – Financial Result and F/X Impact (9M02):
(R$ million)
09/30/02
F/X Impact (2,367)
Amortization of 2001 deferred F/X losses (190)
Net F/X variation (A) (2,177)
On F/X liabilties (2,374)
On F/X assets 197
Financial Result without F/X translation effect (B) (736)
Interest /Monetary Restatement (788)
Interest (406)
Monetary Restatement (382)
Intercompany Loans 46
Banking Expenses (39)
Others 45
FINANCIAL RESULT (A) + (B) (2,913)
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14. Braskem – Net Profit Variation (9M02):
IT
Minority Participation
Operating Result*
403
9M01 355 53 9M02
(306)
Other
N/operating
Rev./Exp.
Loss for the Period
* Operating Result = Operating Profit - Net Fin. Res. (2,104)
+ Shareholders’ Equity
(238) (1,836)
Net
Financial
Result Loss for the Period
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15. Braskem – Consolidated Debt (Sep/02):
Braskem’s Net Debt
In R$ at 09/30/02
Composition by Index R$7,698 (*)
Payment Schedule
IGP- M TJLP 50%
4% 14% CDI 42.1%
11% 40%
26.0%
30%
Trade Finance
~ 47% 20% 15.2%
10.7%
10% 6.0%
0.0%
0%
Oct 2002 to 2004 2005 2006 2007 2008
71% Dec 2003
US$
• Short Term includes: R$ 1.35 Bi of pre-export
contracts; and
• ~ R$ 700 million in working capital for
Average Cost ~ US$ + 8 % pa financing operating cash flow requirements
15 (*) Ignoring proportional consolidation of Copesul and Politeno.

16. Braskem – Operating Cash Generation (9M02):
R$ million
EBITDA 920,544
Principal variations
Working Capital Variation 338,319
Financial Transactions/Trade Fin. Lines (pre-payments) 207,462
Others 46,916
Operating Cash Generation 1,513,242
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17. Braskem – Synergies arising from Integration (R$ MM/year):
Position in September/02
14 53
Synergies already implemented have achieved
Synergies already implemented have achieved
an annual recurring gain of R$ 53 millions
an annual recurring gain of R$ 53 millions
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Reduction in
operating
expenses
6
Optimization
3 of the labor
11 force
Procurement
PIS/Cofins /Logistics
IPI Total
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18. Braskem: Next steps in the Integration Process:
Trikem OPP
Polialden Nitrocarbono
! Braskem: operating on an integrated
! Braskem: operating on an integrated
basis;
basis;
! OPP Camaçari to be merged into
! OPP Camaçari to be merged into
Braskem before the year-end;
Braskem before the year-end;
! Nitrocarbono PSO being examined by
! Nitrocarbono PSO being examined by
Note: Besides the above assets, Braskem
Note: Besides the above assets, Braskem CVM (conclusion imminent);
CVM (conclusion imminent);
also holds the assets of the extinct Copene
also holds the assets of the extinct Copene
! Trikem/Polialden: studies in progress.
! Trikem/Polialden: studies in progress.
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19. Braskem : An excellent investment opportunity !
! Leading thermoplastics producer in Latin America
! Integrated operations enable synergies to be captured
! Consolidated businesses and superior margins, with
adjustment of capital structure already under way;
! Qualifies immediately for Bovespa’s Level 1 corporate
governance classification; will qualify for Level 2 in 2 years
! Adoption of 100% “tag along” rights for all shareholders
! High potential for creation of shareholder value
A world class Brazilian Petrochemical Company !
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20. Abamec Presentations
November 22, 2002
Third Quarter 2002 Earnings
A World Class Brazilian Petrochemical Company
A World Class Brazilian Petrochemical Company
José Carlos Grubisich
Paul Altit
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