Presentation 9M03 Earnings

November 11, 2003

José Carlos GrubisichPaul Altit

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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 September 30, 2003 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.

Disclaimer – Forward-Looking Statements

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Braskem – 9M03 Earnings HighlightsEBITDA (R$ million)

Net Debt/EBITDA (LTM*)

Net Revenues (R$ million)

+43%

* Last twelve months: without extraordinary items in 4Q02.

6,649+36%

921

1,315

9M02 9M03

4,894

5.1

3.5

Mar 2003 Jun 2003

Net Income (R$ million)

468

R$ 2,247

(1,836)

9M02

9M03

Dec 2002

4.1

411

Sep 2003

3.6

9M02 9M03

2,837

(1,841)

Sep 2003

Impact of Concluded Funding and in Progress

Sep 2003Adjusted

996

Adjusted Short-Term Debt**

(R$MM)

** Adjusted Proforma Short Term Debt ignores any effects of foreign exchange, fiscal, operating as well as other uncertainties that may occur. Ongoing operations may not take place or have their volumes reduced.

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Average Capacity Utilization (%)

Braskem – Operating Performance

9M03Main Products

ETHYLENE

Total Thermoplastics

PP

PE

PVC

96%

80%

84%

83%

86%

9M02

89%

74%

82%

80%

79%

1H03

93%

75%

79%

81%

79%

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Braskem – Sales Performance

ETHYLENE*

PP

PE

PVC

Total Thermoplastics

288,395 278,828 3% 766,841

433,319 411,787 5% 1,159,983

116,083 114,113 322,698

185,004 190,330 491,629

115,863 93,727 306,407

Main Products 3Q03 (A)

3Q02(B)

Chg% (A)/(B)

9M03

708,833

1,143,603

307,489

494,217

297,691

9M02

Sales Volume - Ton

2%

(3%)

24%

(C)/(D)

8%

1%

5%

(1%)

3%

(C) (D)

* Of the total for the quarter, 138,000 tons (48%) were sold/transferred to Braskem’s Business Units. Year to date (9M03) this amount was 351,000 tons (46%).

Chg%

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Braskem – Export Sales

175178

3Q02 3Q03

+2%

(US$ MM)

Export Markets (in %)

9M03

North America40%

Europe 19%

Asia19%

South America19%Africa

3%

405

495

9M02 9M03

+22%

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Simplified structure accelerating the capture of synergies

* Annualized, recurring gains

Goal =330

Sep/02 Dec/02 Jun/03

5375

240

Synergies*(R$ million)

Sep/03

260

80% of Goal already reached !

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Braskem – Income Statement

Operating Profit (1)

Net Revenue

Cost of Goods Sold

Gross Profit

EBITDA

EBITDA Margin (%)

Net Financial Result

Profit (Loss) fiscal year

Earnings per share

9M03

6,649

(5,285)

1,364

1,315

19.8%

940

(216)

411

119.03

4,894

(3,987)

907

921

18.8%

816

(2,913)

(1,836)

9M02*

(540.3)

2,197

(1,760)

437

367

255

(1,672)

(1,356)

3Q02*

(399.0)

16.7%20.9%

2,203

(1,728)

3Q03

475

461

304

(386)

(58)

(16.8)

-

(2%)

9%

26%

19%

(77%)

(96%)

Chg %

-

(A/B)

25.1%

37%

33%

51%

43%

5.3%

15%

(93%)

-

* Pro-forma financial statement

Chg %(C/D)

-

(A) (B) (C) (D)

(1) Before Financial Result

(R$ Million )

Consistent Growth in Operating Profit Margins

Gross Margin (%) 20.5% 18.5%19.9%21.6% 8.4% 10.7%

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SG&A (1) and Fixed Cash Cost (as % of Net Revenue)

(1) Excluding Depreciation/Amortization

9M02 9M03

8.3%

9.8%

4.2%

5.9%

SG&A (1)Fixed Cash Cost

9M02 9M03

Focus on Managing the Competitiveness of Costs and Expenses

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9M02

921

1,315

Prices

1,744 (1,317)

Fixed &Var. Costs

(62)

OtherOperating

Revs./Exps.

Braskem - EBITDA Change (R$ million)

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SalesVolume

9M03

Naphtha: (R$ 1.15 billion)

Fuel Oil: (R$ 109 MM)

Natural Gas: (R$ 23 MM)

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Braskem – Steady EBITDA Growth

Source: Thomson Financial Investor Relations and Braskem

(*) Average EBITDA margin for the following companies: Dow, DuPont, Solvay, Lyondell, Nova Chemicals and Georgia Gulf based on public earnings data from 9M03. 9M02 includes Eastman and BASF in addition to those already mentioned.

EBITDA marginPetrochemical Peers (%)

Braskem

Industry Average (*)

9M02 9M03

EBITDA(R$ million)

20

11

19

Extraordinary Items

14

315367

780*

415

1,195

450

405

2Q02 3Q02 4Q02 1Q03 2Q03 3Q03

461

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Braskem – Financial Management of Working Capital

G.O.C.

+

Competitive Funding in the

Financial

Market

Liquidity

CushionR$ 662 MM

(Cash, Finan. Aplic, Securities)

Reduction in cost of finance lines from

banks and suppliers

GreaterFlexibilityoperational,financial and

strategic.&

Reduction in AverageFinancial

Cost

++

Focus on Liquidity and Reduction of Capital Costs

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R$1.2 Bi via 4-year debenture issue.

Braskem – Program for Refinancing and Funding of ~US$1.0 Billion

US$386 MM via MTN (3 tranches issued);

US$100 MM via pre-payment of exports;

US$50 MM via a trade finance line for naphtha imports.

Concluded

09/30/2003Gross Debt: R$ 6.8 BiNet Debt: R$ 6.2 Bi

Improved Results = Competitive Funding Opportunities

R$200 MM via structuring of Receivable Fund;

In progress

18

316

20

34

2004 2005 2006 20072003Oct03-Dec03

Adjusted Amortization Schedule*(Gross Debt - %)

Adjusted Short-Term Debt*(R$MM)

9

2008

1,731

996

Sep/03Adjusted

(Net Value)

542

Sep/03Tax Credit

Balanceused

Sep/03EBITDA

UDM

662

Sep/03Cash balance/Fin . Inv./Sec.

* Adjusted ST pro forma debt disregards any effect of FX, fiscal, or operating nature, as well as further uncertainties that may occur. Operations in progress may not take place or have their volumes reduced.

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IGP-M5%

TJLP16%

CDI11% Other

1%

Braskem – Exchange Risk Management

HedgeNon-export linked

Finance Lines

$ 555 MM

Export linked Finance Lines

$ 310 MM

1. Hedge/Investments $ 472 MM

2. Export relatedcredits $ 138 MM

Position on 09/30/2003

(1 + 2) = USD 610 MM

Trade Finance ~28%

69%

Breakdown of Gross Debt by Index (Sep/03)

0

100

FINANCE LINES LINKED TO EXPORTS.

60%

60 %

0

100

FINANCE LINES NOT LINKED TO EXPORTS

60%

75 %

Hedge Policy

Level of hedge protection contracted.

75%

60%

USD 416 MM

USD 186 MM

USD 602MM

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Updated to: 11/07/2003

Braskem – Share Price Performance in 2003

398

166

465

60

140

220

300

380

460

Jan-03Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03

100

BAK

BRKM5

Ibovespa

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The scenario looks promising for Braskem

Source: Nexant – Chem Systems + Braskem

Braskem: Major growth potential in sales volumes, revenues and margins.

The outlook is for higher thermoplastic resin prices on the international front, with improved margins;

As confirmed by Chem Systems, the fly-up for the petrochemical sector is expected for 2005;

On the international front, there is also the outlook for a gradual reduction in oil and Naphtha prices in the next few years, providing the basis for a consistent improvement in margins;

Domestically, the outlook is for GDP growth - as of 2004. This factor associated with the high degree of elasticity for thermoplastic resins in Brazil, indicate improved sales volumes to the domestic market.

Should the above outlook become a reality, Braskem can be expected to report improved sales volumes, revenues and returns - as of 2004, onwards…

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Braskem – an excellent investment opportunity

Leader in the Latin American thermoplastics market.

Integrated operations permitting capture of synergies.

Consolidated businesses and superior margins.

Incorporation of OPP and Nitrocarbono concluded and negotions with common shareholders of Trikem and Polialden in progress.

Adherance to Bovespa’s corporate governance Level 1 and adhesion to Level 2 (in 2 years).

Stock split with a view to increased liquidity

Adoption of 100% tag along rights for all shareholders.

Listed on Latibex in October (“ticker symbol” XBRK).

Strong future growth potential in volumes and returns.

A world class Brazilian petrochemical company !