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José Carlos GrubisichPaul Altit

Third Quarter 2002 Earnings

A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company

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This presentation includes forward looking statements. Suchinformation is not merely based on historical fact but also reflectsmanagement’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 identifyaffirmations which, necessarily, involve known and unknown risks.

Known risks include uncertainties which include, but are not limited toprice and product competition, market acceptance of products, theactions of competitors, regulatory approval, currency type andfluctuations, regularity in the sourcing of raw materials and inoperations, among others. This presentation is based on events up toNovember 22, 2002 and Braskem is not liable to update the contents inthe light of new information and/or future events.

Braskem takes no responsibility for transactions or investmentdecisions made on the basis of information contained in thispresentation.

Disclaimer – forward looking statements

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Nine-month results through September 30, 2002:Criteria Adopted in the Pro-Forma results:

• The financial information for the companies comprising the Braskemgroup is considered as if these companies had been part of thecorporate structure since the beginning of 2002.

• The companies that comprise Braskem and are 100% consolidated inthe result are: Braskem pp dita; OPP; Trikem; Polialden andNitrocarbono;

• The effects of the proportional consolidation of Braskem’s investmentsin Politeno and Copesul pursuant to CVM 247 are excluded. Theseinvestments are recognized in the Equity Income account.

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Basic Petrochemical

Complex

Basic Petrochemical

Complex

Braskem – The largest Latin American petrochemical company:

13 Plants in the main industrial centers:

Clorine SodaClorine Soda

HDPEHDPEBasicPetrochemica

Complex

BasicPetrochemica

Complex

LDPELDPE

Camaçari

Triunfo

São Paulo

AratuPort

Terminal

AratuPort

Terminal

PPPP

PVCPVC

CaprolactamCaprolactam

HDPELLDPEHDPELLDPE

Alagoas

Assets with a replacementvalue of ~ US$ 4.5 Bi,

excluding investments inCopesul and Politeno

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! 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 domesticthermoplastics market. New opportunities for consolidation.

Positive Petrochemical Scenario – 2003 / 2007:

Source: international consulting firms

The next cycle could be one of the best periods for the sector

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Braskem - Market – Sales Volume (kton):

ETHYLENE

PE

PVC

482,181494,217 + 2%

292,338297,691 + 2%

PP 281,825307,489 + 9%

800,981708,833 - 12%(*)

PET 39,62644,206 + 12%

1,095,9691,143,603 + 4%TOTAL THERMOPLASTICS

9M 019M 02 Var. (%)PRINCIPAL PRODUCTS

(*) Maintenance and modernization stoppage at the Pyrolysis Plant #1 at the Basic PetrochemicalsComplex, Camaçari (Ba)

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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)

40%

35%

19%7% Basic raw material

PolyolefinsVinyls

Bus. Development

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Braskem – Industrial Performance - Production (kton):

ETHYLENE

PE

PVC

497,782484,459 - 3% (*)

265,345273,919 + 3%

9M 019M 02 Var. (%)

PP 290,915301,501 + 4%

805,183703,840 - 13% (*)

PET 51,38440,085 - 22% (*)

1,105,4261,099,964 0%TOTAL TERMOPLASTICS

(*) Maintenance and modernization stoppage at the Pyrolysis Plant #1 at the Basic PetrochemicalsPlant, Camaçari (Ba)

PRINCIPAL PRODUCTS

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Braskem – Industrial Performance – Average Utilization Rates:

(*) Maintenance and Modernization Stoppage at the Pyrolysis Plant #1 at the Basic PetrochemicalsComplex, Camaçari (Ba)

ETHYLENE

PE

PVC

79%80% (*)

79%82%

9M 019M 02

PP 86%89%

90%

81%83%TOTAL THERMOPLASTICS

PRODUCTS

79% (*)

91%

95%

Oct/02

98%

102%

95%

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Braskem – Operating Results - COGS (9M02):

64%

24%

6% 4%2%

Others

Depreciation Personnel

Electric Energy

Naphtha

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Braskem – Operating Results - EBITDA (9M02):

EBITDA – 2002(Quaterly)

367315

238

100

200

300

400

1Q 2Q 3Q

R$ million

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109

(14)

9M01 9M02

540

307

461

(23)(30)

(63)

(470)

816

Participation inControled/AssociatedCompanies

AveragePrice

Other Oper.Rev./Exp.

Variable Costs

SG&A **

Fixed C./Deprec.

Deprec./Amort.Expenses

Total SalesVolume

** Not including depreciation

* Operating Income = Operating Profit - Net. Fin. Res. + S/h. Equity

Inflation (IGP-M) = 13.3%; Reclassifications(R$ 10 MM) and Integration Process (R$15MM)

Braskem – Variation in Operating Income * (9M02):

Insurance; Depreciation (transf.from fixed assets in progress)

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Braskem – Financial Result and F/X Impact (9M02):(R$ million)

09/30/02

Net F/X variation (2,177)

On F/X liabilties (2,374)

Intercompany Loans 46

Banking Expenses (39)

Others 45

On F/X assets 197

Interest /Monetary Restatement (788)Interest (406)Monetary Restatement (382)

Amortization of 2001 deferred F/X losses (190)

F/X Impact (2,367)

Financial Result without F/X translation effect (736)

FINANCIAL RESULT (2,913)

(A)

(B)

(A) + (B)

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(306)

355 53

403

(2,104)(238) (1,836)

Loss for the Period

9M01 9M02

Operating Result*IT Minority Participation

NetFinancial

Result

OtherN/operatingRev./Exp.

Braskem – Net Profit Variation (9M02):

Loss for the Period

* Operating Result = Operating Profit - Net Fin. Res.+ Shareholders’ Equity

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Braskem’s Net DebtIn R$ at 09/30/02

R$7,698 (*)

(*) Ignoring proportional consolidation of Copesul and Politeno.

Payment Schedule

0%

10%

20%

30%

40%

50%42.1%

Oct 2002 toDec 2003

2004 2005 2006 2007 2008

15.2%

6.0%10.7%

26.0%

0.0%

Average Cost ~ US$ + 8 % pa

Composition by Index

Braskem – Consolidated Debt (Sep/02):

• Short Term includes: R$ 1.35 Bi of pre-exportcontracts; and

• ~ R$ 700 million in working capital forfinancing operating cash flow requirements

14%11%

71%

4%TJLP

CDI

US$

IGP- M

Trade Finance ~ 47%

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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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Synergies already implemented have achieved an annual recurring gain of R$ 53 millions

Synergies already implemented have achieved an annual recurring gain of R$ 53 millions

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14

3

6

19

IPI

PIS/CofinsProcurement

/Logistics

Optimizationof the labor

force

Total

53

Reduction inoperatingexpenses

Position in September/02

Braskem – Synergies arising from Integration (R$ MM/year):

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Braskem: Next steps in the Integration Process:

! Braskem: operating on an integratedbasis;

! OPP Camaçari to be merged intoBraskem before the year-end;

! Nitrocarbono PSO being examined byCVM (conclusion imminent);

! Trikem/Polialden: studies in progress.

! Braskem: operating on an integratedbasis;

! OPP Camaçari to be merged intoBraskem before the year-end;

! Nitrocarbono PSO being examined byCVM (conclusion imminent);

! Trikem/Polialden: studies in progress.

PolialdenPolialden

TrikemTrikem

NitrocarbonoNitrocarbono

OPPOPP

Note: Besides the above assets, Braskemalso holds the assets of the extinct CopeneNote: Besides the above assets, Braskem

also holds the assets of the extinct Copene

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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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Abamec PresentationsNovember 22, 2002

José Carlos GrubisichPaul Altit

Third Quarter 2002 Earnings

A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company