1

BOVESPA PresentationFebruary 13, 2003

José Carlos Grubisich

A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company

2

This presentation includes forward looking statements. Such information isnot merely based on historical fact but also reflects management’sobjectives 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 priceand product competition, market acceptance of products, the actions ofcompetitors, regulatory approval, currency type and fluctuations, regularityin the sourcing of raw materials and in operations, among others. Thispresentation is based on events up to February 13, 2003 and Braskem is notliable to update the contents in the light of new information and/or futureevents.

Braskem takes no responsibility for transactions or investment decisionsmade on the basis of information contained in this presentation.

Disclaimer – forward looking statements

3

- Overview of the Braskem Project;- Thermoplastics in Brazil;- Petrochemical Industry Situation;- Cash Flow and Debt Reduction.

José Carlos Grubisich - CEO

Braskem: Overview

4

! Corporate Governance

! Tender Offer - Nitrocarbono

! New Bylaws

! 100% tag-along for all shareholders

! New Conduct Code

! Disclosure Policy directed to the Market

! Level 1 - Bovespa

! Stock Trading Policy

Braskem’s Commitment with the Market:

! Timetable of 2003 Events has already been set up

5

Braskem: 181 days later ...

! Braskem: fully integrated operations;

! Nitrocarbono’s tender offer of commonstocks;

! Merger of OPP expected to take place bythe end of the first quarter;

! Trikem/Polialden: studies are in course.

! Braskem: fully integrated operations;

! Nitrocarbono’s tender offer of commonstocks;

! Merger of OPP expected to take place bythe end of the first quarter;

! Trikem/Polialden: studies are in course.

Note: Apart from the assets shown above,Braskem holds the assets formerly

belonging to Copene

Note: Apart from the assets shown above,Braskem holds the assets formerly

belonging to Copene

% voting capital - % total capital

29.5% 29.5% 35.0% 30.9%

6

Petrochemical Complex

Petrochemical Complex

Braskem – The leading petrochemical company in Latin America:

13 modern and competitive plants:

Chlorine SodaChlorine Soda

PetrochemicalComplex

PetrochemicalComplex

Camaçari

Triunfo

São Paulo

AratuPort

Terminal

AratuPort

Terminal

PPPP

PVCPVC

CaprolactamCaprolactam

HDPELLDPEHDPELLDPE

Alagoas

Assets with a replacementvalue of ~ US$ 4.5 billion,excluding investments in

Copesul and Politeno

LDPELDPE

HDPEHDPE

7

Braskem – A “Catalyst” in the Petrochemical Sector:

! The creation of Braskem reiterates the advantages to the Brazilianpetrochemical sector of an integrated business model, with competitivescale;

! Braskem established a new strategic dynamics in the sector, intensifyingcompetition in the domestic market, which will benefit customers in thepetrochemical chain;

! The Braskem project has brought forth the need for greater investments inoutput expansion, quality and productivity, which will also contribute toboost competitiveness of Brazilian petrochemical products bothdomestically and abroad.

A World Class Brazilian Petrochemical Company

8

Braskem – An attractive market for its core business:

Source: Abiquim, 2002

1,313 1,4191,274

1,5961,811

2,1352,276

2,529 2,6532,829

3,102 3,014

0

500

1,000

1,500

2,000

2,500

3,000

3,500

‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01

Thou

sand

s of

tons

Thermoplastics(PE,PP e PVC)CAGR*= 8%

* CAGR - Compound Annual Growth Rate

‘02

3,2006%

9

Annual growth rate – Brazil(1990 through 2002)

1990 - 20020

5

10

15

2.1

GDPGDP

PVCPVC

6.1

%

Thermoplastics’ CAGR is3.7 greater than GDP

Thermoplastics in Brazil – Elasticity has remained high:

6.5

PE’sPE’s

11.7

PPPP

7.7

TPTP(thermoplastics)

*

CAGR * - Compound annual growth rateSource: Abiquim, 2002

10

Thermoplastics in Brazil - Potential growth:

Source: ABIQUIM / CMAI 2001

USA

EasternEurope

Korea

Brazil

Mexico

0

15

30

45

33

95

Polypropylene Polyethylene

47

83.7

PVC

15

4.5

1622

4

Con

sum

ptio

n (k

g/in

habi

tant

)

2320

Per Capita Consumption of Thermoplastics

Intensification in the use of plastics:replacement of traditional products

31

2.7

20

2.85

60

China

11

Braskem – Net Debt Reduction (2001/2002):

REDUCTION FACTORS

! Strong Cash Generation in 2002;

! Efficiency in the working capitalmanagement efficiency;

! Synergies stemming from theintegration process.

2,216

1,773

1,000

1,250

1,500

1,750

2,000

2,250

2,500

Initial Net Debt

Dec/01* Dec/02*

Final Net Debt

US$ MM

∆∆∆∆ = US$ 443 MM

Net Debt/GOC** = 4.50 Net Debt/GOC** = 2.40

* Unaudited** Average FX rate in the period

12

Short-term maturities

-

USDR$

In R$ MM

2,583

3,361

Sep/02-Sep/03

Base Sep - 02 Base Dec - 02

Dec/02-Dec/03*

∆∆∆∆ = 778

* Unaudited

Braskem – Short-term Debt Reduction (Set – Dec/02):

Braskem’s Net Debt30/Sep/2002

R$ 7,698 MM 31/Dec/2002

R$ 6,913 MM (*)

Cash Flow in 2002 (estimated) > R$ 2 billion

13

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;

! 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

14

José Carlos Grubisich

A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company

BOVESPA PresentationFebruary 13, 2003