2. Forward-looking Statements
This presentation contains forward-looking statements. These statements do
not represent historical fact, but rather reflect the beliefs and expectations
of Braskem’s management. The words “anticipate”, “wish”, “expect”,
“estimate”, “intend”, “forecast”, “plan”, “predict”, “project”, “target” and
similar words are intended to identify these statements. Although Braskem
believes that the expectations and assumptions reflected in these forward-
looking statements are reasonable and based on information currently
available to management, Braskem cannot guarantee future results or events.
The forward-looking statements included in this presentation are valid only
on the date on which they are made (March 31, 2008), and the Company does
not undertake any obligation to update them in light of new information or
future developments.
Braskem is not responsible for any transaction or investment decision taken
based on the information in this presentation.
2
9. Regional strength better than that of
global peers
Unmatched capacity share in its respective home region
% Capacity Share
Region Company PE PP PVC
South America Braskem 46% 44% 32%
Quattor 23% 31% 0%
North America DOW 22% 4% 1%
NOVA 7% 0% 0%
Mexichem 0% 0% 4%
Westlake 6% 0% 8%
Northeast Asia LG Chemical 5% 2% 6%
Western Europe Solvay 0% 0% 15%
9
Source: Braskem / CMAI 9
10. Braskem has most of its operations in the
leading economy in LATAM…
• Brazil: 1/3 of LATAM GDP • LATAM GDP (US$ billion) *
Brazil: 1,838
Others
México: 1,353
20% Argentina: 524
Brazil
33% Venezuela: 335
Colombia 6%
Venezuela 6% Colombia: 320
Argentina Others: 1,070
Mexico
10%
25%
Total: 5,440
(*) PPP – Purchasing Power Parity
10
Source: The Economist (Mar2008) 10
11. …and is exposed to a dynamic market
with strong growth rates…
01-07 GDP Elasticity in Brazil: 2x
• Domestic demand for resins • USA Demand for resins (Kton)
0.7%
6.0%
CAGR
CAGR
10% 4,048
3,694 1% -3%
9% 25,904 25,020
3,435 3,377 856 24,749 24,306
2,880 749 23,276
692 5,907
1,228 6,081 5,563
1,114
990 6,287
6,350 6,142
1,964
1,833
1,695 12,826
12,318 12,601
2001 2004 2005 2006 2007 2001 2004 2005 2006 2007
PVC PP PE
Source: Abiquim – domestic sales + imports Source: NAD - CMAI 11
12. …with high level of consolidation…
• Number of Producers • 2 Top producers share
100% 100%
12 93%
12
9
42% 51%
4 30%
2 2
PP PE PVC PP PE PVC
BRAZIL USA
12
Source: Braskem / CMAI 12
14. …and Diversified customer basis in the
fast-growing Brazilian market
% of Resin Sales Growth by Sector in 2007
OTHERS INDUSTRIAL + 6%
AUTOMOTIVE FOOD PACKAGING
ELECTRIC AND 10%
ELECTRONIC 3% PLASTIC PACKAGING + 4%
INFRASTRUCTURE
2% 23%
4%
CLEANING
MATERIAL 5% CONSUMER GOODS + 5%
COSMETICS AND
PHARMACEUTICALS
3%
CONSTRUCTION + 5%
8% 17%
AGRICULTURE
CONSUMER FERTILIZERS + 5%
8% GOODS
RETAIL 17%
AUTOMOBILES + 15%
CIVIL CONSTRUCTION
HOME APPLIANCES +6%
14
Source: Braskem / IBGE
14
15. Braskem has differentiated
technology
Innovation is a key value driver for Braskem
• Over US$ 160 million
in R&D assets
• 200 researchers
• 8 pilot plants
• 187 patents filed
• Focus on nanotechnology and intelligent
packaging
• Partnership with universities and R&D
centers in Brazil and abroad
• 18% of resins sales derive from
products developed in the last three
years 15
Source: Braskem 15
16. Green Polymer:
A global pioneer achievement
• Ethylene plant from ethanol – 200,000 tons
• Operation startup in 2010 in Triunfo, RS
• Pilot plant producing @ 12 ton/year – samples
under tests at potential clients
• High demand potential
• Estimated investment of ~ R$ 450 million
Certified by Beta Association with
100% renewable
Analytics USA Brazilian and
feedstock multinational
Sugar Cane Ethanol Main laboratory in the world companies
specialized in carbon analysis Food, automotive and
cosmetic industries
16
Source: Braskem 16
17. Strong and consistent spread over
international prices
PE: Braskem Premium over International % PP: Braskem Premium over International %
42%
34% 33%
27%
Spread PEAD Braskem / International US$ Spread PP Braskem / International US$
Average 27%
Average 30%
5
5
5
5
5
05
6
6
6
6
6
06
7
7
7
7
7
07
8
8
5
5
5
5
06
6
6
6
07
7
7
07
08
8
5
05
6
06
7
07
/0
/0
/0
l/0
/0
/0
/0
/0
l/0
/0
/0
/0
/0
l/0
/0
/0
/0
0
/0
/0
l/0
t/0
/0
/0
l/0
t/0
/0
/0
l/0
/0
v/
v/
v/
v/
v/
t/
v/
n/
n/
n/
n/
n
n
n
n
t
t
t
ar
ar
ar
ar
ai
ai
ai
ju
ju
ju
ar
ar
ar
ar
ai
ai
ai
se
se
se
ju
ju
ju
no
no
no
ja
ja
ja
ja
se
se
se
m
m
m
no
no
no
ja
ja
ja
ja
m
m
m
m
m
m
m
m
m
m
m
Drivers
PVC: Braskem premium over international % •High value-added product mix
•Development of new products
52% •Logistics constraints as a barrier for
imports
42% •Import tariffs
•Reliability of supply
Spread PVC Braskem / International US$
Average 42% •Market knowledge
•Technical support for product
05
05
5
5
05
05
06
6
6
6
06
06
07
7
7
7
07
07
08
8
l/0
/0
l/0
/0
l/0
/0
/0
/0
/0
t/
t/
t/
n/
/
v/
n/
v/
n/
v/
n/
ai
ai
ai
ar
ar
ar
ar
ju
ju
ju
se
se
se
no
no
no
ja
ja
ja
ja
m
m
m
m
m
m
m
applications
Source: CMAI / Braskem 17
19. Production growth with higher
operating reliability
Capacity Utilization %
ETHYLENE PE PP PVC
104%
96% 95% 96% 96% 96%
93% 94%
92%
91% 89% 86%
88%
1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08
Resin Production Kton
ALL-TIME RECORDS
2,827
2,786 Production in the last 12
700 702 704 months of 2,827 Kton
+1%
Quarterly PVC production
of 130 Kton in 1Q08
LTM LTM 1Q07 4Q07 1Q08
1Q07 1Q08
19
Source: Braskem
20. Continued leadership position in
growing domestic market
Domestic Sales 1Q08 vs. 1Q07 % Resin Market Share 1Q08
+13%
Other
+7% 29%
+ 6% +5% 49%
22%
Imports
Resin
PE PP PVC
Braskem
*Domestic sales + Imports in kton
Source: Braskem / Abiquim 20
21. Resilience performance in a
challenging scenario
R$ million 1Q08 4Q07 Change %
Sales 4,410 4,809 (8)
EBITDA 583 648 (10)
Margin 13.2% 13.5% -0.3 p.p.
Net Income before Minority 120 25 379
Minority Interest (37) 2 -
Net Income 83 27 204
Source: Braskem
* Pro Forma Figures 21
22. Evolution of EBITDA
Commercial strategy and reduction in fixed costs minimize
impacts from higher Naphtha prices
R$ million
Fixed cost reduction and 5% increase in US$/t
lower export volumes naphtha prices
Higher international
prices coupled with
FX impact
strong pricing power in 83 on costs
the domestic market 112
Extraordinary sales FX impact
188 volume in 4Q07 (115) on revenue
648
(263) (136) 19 583
(89)
(32)
4Q07 Fixed Raw 1Q08
Prices Volume Foreign Other
Costs/ Materials
Exchange
SG&A
Source: Braskem 22
23. Lengthening of debt profile
is a priority and is in course
TJLP CDI
in R$ million (3/31/08) Pré-fixado 8% 17%
2%
Gross Debt: 9,363 Net Debt / EBITDA (x)
Net Debt: 7,431
2.56
US$
1.93
Bridge
Average Term:10 years* 23% Trade Loan
Finance 23% +33%
27%
22%
Dec-07 Mar-08
875 US$ 73%
Cash and equivalents
US$ 500 million Bond Issuance (~ R$ 875 MM)
1,932
792 16%
13%
1,143
10% 9% 875
9%
441 8%
7%
6%
1,241 894
789 974 827 786
767 534 617 614
3/31/08 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpetual
In R$ 2013 2015 2017 2020
In US$ * Includes R$2.1 billion from bridge loan to acquire Ipiranga Group’s petrochemical assets
Source: Braskem
* Average Term after the US$ 500 million bond issuance is 11 years 23
25. NPV of US$ 1.1 billion in total synergies
from Ipiranga acquisition
R$ 200 million on annual and recurring basis in the EBITDA
R$ million
Total Synergies
Synergies in 2008 (R$ 108 million) 9 200
10
14
25
69
73
Total
Industrial Commercial Logistics Supply Others Financial
Synergies
Source: Braskem 25
25
26. Accelerated Synergies in 1Q08:
R$ 136 million in annual and recurring gains
Actual Goal R$ million
Annualized
Synergies 1Q08 2008
Industrial 16 39
Commercial 42 29
Logistics 7 16
Supply 10 13
Financial 2 7
Others 1 4
Benefit on EBITDA 77 108
Financial ex-Ebitda 59 80
Source: Braskem 26
27. Additional gains of R$ 100 million with
Fixed Costs Reduction Program
R$ 100 million estimated annual & recurring gains:
R$ 30 million in production costs
R$ 70 million in general and administrative
expenses
R$ 67 million already captured in 1Q08 on annualized
and recurring basis
Renegotiation of contracts: insurance, IT and telecom
Supply chain integration: reduction in inventory levels of
maintenance and production items
Optimization of the organizational structure 27
27
28. Strategic alignment with Petrobras
Superior Industry Structure in Brazil: Consolidation around 2 large
competitors (Braskem & CPS).
New Geographic growth opportunities: linked to Petrobras’
extensive footprint in Brazil and abroad
Synergies:
potential for operational integration with Petrobras refineries
Innovation & Technology: partnership with Petrobras Research
Center
High corporate governance standards: New shareholders
agreement
28
28
29. Ethylene global supply & demand balance
High capacity utilization rate in 2008
SIPCHEM*
shelves plans
for 1.3 MM ton
MM ton cracker at Utilization Rate %
Al-Jubail in
180 Saudi Arabia 100
100
160
160 149 154
140 142 95
95
140 131 131 136
124
91% 119
120
90 89% 89% 90
88% 88%
100
80
85
85
60
80
40 80
20
75
0 1 2 3 4 5 75
2008 2009 2010 2011 2012
Supply Demand Utilization Rate
Source: CMAI, March of 2008 * SIPCHEM - Saudi International Petrochemical
29
30. Global supply & demand
High Ethylene Utilization Rate in South America
Ethylene
MM tons
159
9
3
4
8
9
126
EHYTLENE UTILIZATION RATE (’07-’12)
(’ 07-
WORLD ≥ 88%
SOUTH AMERICA ≥ 92%
NORTH AMERICA ≥ 85%
Supply Supply
Saudi Arabia China Iran Qatar Others
2007 2012
30
Source: CMAI 30
31. Meaningful organic growth …
Reinvestment spread prudently
• (1) over time, (2) across geographies and (3) with diversified feedstock
Braskem Capacity Additions (2008-12)
Product Capacity Investment Advantage Start-up
(K ton) (US$ MM)
PP Paulínia 350 350 Diversification - Refinery Gas 2008
Green PE 200 NA Ethanol – 100% Renewable 2010
PP Venezuela* 450 900 Propane at competitive cost 2010
PVC Alagoas 200 350 Leadership and innovation 2010
PP Bahia 300 NA Strengthen Market leadership 2012
PE Venezuela* 1,100 2,600 Ethane at competitive cost 2012
Total 2,600
31
Source: Braskem * JV with Pequiven (49%) and Sojitz (2%) NA: Not Available
31
32. …resulting in further improvement in cost
competitiveness via scale and efficiency
Larger scale Increased Competitiveness
Venezuela
4.9
+43% million
Camaçari - BA
715
Paulínia - SP
3.4
million 1,635
4% Triunfo - RS
9%
515
515
34%
32% 57%
55%
1,110
9%
2,565
1,815
2008 2012 FYE Feedstock from Refinery Naphtha
Polyethylene Polypropylene PVC Ethanol Natural Gas
32
32
Source: Braskem
33. Proven capacity in project
management: PP Paulínia
Start up in April 2008
Spheripol technology
Global scale: 350
Kton/year
Located in the largest
consumer market in
Latin America
Feedstock: Propylene
from refinery
Investments of R$ 700
million
33
34. Braskem:
High Upside Potential
# 1 in Domestic Market Share, #2 in Profitability and # 3 in Growth:
not yet translated into the stock price
EV/EBITDA (x)
50% upside
potential to the
12.1
average peer
EV/EBITDA
8.8 multiple
7.0 7.0 Average – 7.1
5.8 5.5 5.5 4.8
Unipar Mexichem Dow Westlake Braskem Solvay NOVA LG
Chemicals Chemicals
Source: Avi Nash LLC 34
35. Braskem:
High Upside Potential
Dominance in the domestic market with superior profitability
Exposure to the fast-growing domestic market
NPV of US$ 1.4 billion derived from synergies and reduced fixed
costs
Growth projects with increased profitability and high ROCE
Proven expertise to implement greenfield projects
Strategic alignment with Petrobras
Innovation and Technology as key value drivers: green polymer
Experienced management team focused on value creation
Commitment to Sustainability 35
35