1st Annual 1st Annual CitiCiti Brazil Brazil
Equity ConferenceEquity ConferenceJune 2008June 2008
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.
3
Agenda
� Overview
� Key Differentiators
� Key Financial & Operational Figures
� Upside Drivers
3
4
Agenda
� Overview
� Key Differentiators
� Key Financial & Operational Figures
� Upside Drivers
4
5
Braskem # 1 Petrochemical Company in Latin America
• #1 Petrochemical Company in LATAM
Resins Production Capacity (kton)
5
Source: Braskem/ CMAI
1Q08 LTM FINANCIALS
• Net Revenue: US$ 10.2 bi
• EBITDA: US$ 1.6 Bi
• Assets: US$ 12.1 bi
• EV: US$ 8.0 bi 0
1,000
2,000
3,000
Quattor Solvay EcopetrolMexichemBraskem
3,440
1,515
682521
438
692
Dow
3,500
6
Strong and consistent growth via Organic and Acquisitions Routes
Source: Braskem(1) Ethylene and Resins(2) LTM 1Q08 Net Revenue
1994 1996 1998 2000 2002 2004 2005 2006 2007
Organic
Acquisitions
1,000
2,000
3,000
4,000
5,000
US$ 1,357 MM
US$ 2,375 MM
US$ 9,712 MM
1,228 1,2341,528 1,734
3,045 3,225
3,621
5,551
• Production capacity (1) ► CAGR (94-08) = 12%
• Total Revenues ► CAGR (94-08) = 15.5%
New PP Plant
start-up
New PE Plant
start-up
Creation ofBraskem
PP DBNEthylene DBN PVC DBN
PolitenoAcquisition
Copesul / IPQAcquisition
3,145
KtonRevenues
6
2008
5,901
US$ 10,153MM (2)
7
• # 3 Resins Producer in Americas -petrochemical “pure-play”(kton)
7
0%
5%
10%
15%
20%
Mexichem Solvay Westlake DowUnipar
18%
LG Ultrapar Nova Chemical
Median
Braskem
• #2 Global Ebitda Margin - petrochemical “pure-play” (03-07 average)
Source:Braskem / CMAI March 2008
PVC
PEPP
5,774
3,440
4,646
2,949
2,161
2,040
3rd
FormosaDow
615
6464
5,0955,095
LyondellBasellBraskem ShintechIneos
2,8132,813
1,833
1,8151,815
1,110
515515
978978
761
1,2101,210
926926
1,235
Large Scale combined with superior profitability
• #2 Ebitda Margin in the Americas (1Q08 LTM)
0%
5%
10%
15%
20%
Mexichem Nova Chemical
Unipar DOW Westlake Ultrapar
Median
Braskem
15%
8
AgendaAgenda
� Overview
� Key Differentiators
� Key Financial & operational Figures
� Upside Drivers
8
9
% 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%
Regional strength better than that of global peers
9
Source: Braskem / CMAI
Unmatched capacity share in its respective home region
1010
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
México: 1,353
Argentina: 524
Venezuela: 335
Colombia: 320
Others: 1,070
Total: 5,440
Colombia 6%
Mexico
25%
Argentina
10%
Venezuela 6%
Brazil
33%
Others
20%
Source: The Economist (Mar2008)
(*) PPP – Purchasing Power Parity
11
…and is exposed to a dynamic market with strong growth rates…
• Domestic demand for resins
Source: Abiquim – domestic sales + imports
PEPPPVC
2,880
3,435 3,3773,694
2001 2004 2005 2006
4,048
2007
1,695
990
692
1,833
1,114
1,964
1,228
856
6.0%CAGR
10%
9%
749
• USA Demand for resins (Kton)
23,276
25,90424,749
25,020
2001 2004 2005 2006
24,306
2007
6,350
6,081
6,287
12,826
6,142
12,601
5,563
0.7%CAGR
-3%1%
5,907
12,318
Source: NAD - CMAI
01-07 GDP Elasticity in Brazil: 2x
1212
…with high level of consolidation…
• 2 Top producers share• Number of Producers
BRAZIL USA
Source: Braskem / CMAI
PEPP PVC
1212
9
42 2
PP PVCPE
100% 100%93%
30%51%42%
131313
…Growing & Sustained Leadership in Brazil…
Source: Braskem/Abiquim Dec 07
• PP Market Share • PVC Market Share
• PE Market Share
51% 55% 37%
9% 7% 14%
38%40% 41%42% 49%
50%48%
9%10%
0%
20%
40%
60%
80%
100%
2001 2003 2005 2006 2007
BRASKEM PEER IMPORTS
57%48%
29%32% 27%
14% 20% 19%
54%52% 53%
28% 30%
20% 17%
0%
20%
40%
60%
80%
100%
2001 2003 2005 2006 2007
BRASKEM PEER IMPORTS
29% 31%
55% 50%
32%
16% 19% 16%
52%33% 37%
53% 46%
15% 17%
0%
20%
40%
60%
80%
100%
2001 2003 2005 2006 2007
BRASKEM PEER IMPORTS
141414
Source: Braskem / IBGE
…and Diversified customer basis in the fast-growing Brazilian market
% of Resin Sales% of Resin Sales
FOOD PACKAGING
CONSUMERGOODS
CIVIL CONSTRUCTION
RETAIL
AGRICULTURE
COSMETICS ANDPHARMACEUTICALS
CLEANINGMATERIAL
INFRASTRUCTURE
ELECTRIC AND ELECTRONIC
AUTOMOTIVE
OTHERS
17%
17%
23%
10%3%
2%4%
5%
3%
8%
8%
INDUSTRIALINDUSTRIAL + 6%
Growth by Sector in 2007Growth by Sector in 2007
CONSTRUCTION CONSTRUCTION
AUTOMOBILESAUTOMOBILES
HOME APPLIANCESHOME APPLIANCES
FERTILIZERSFERTILIZERS
CONSUMER GOODSCONSUMER GOODS
PLASTIC PACKAGINGPLASTIC PACKAGING + 4%
+ 5%
+ 5%
+ 5%
+ 15%
+6%
151515
Braskem has differentiated technology
• 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
Source: Braskem
Innovation is a key value driver for Braskem
1616
Green Polymer:A global pioneer achievement
Source: Braskem
• 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
100% renewable 100% renewable feedstockfeedstock
Sugar Cane EthanolSugar Cane Ethanol
Certified by Beta Certified by Beta Analytics USAAnalytics USA
Main laboratory in the world Main laboratory in the world specialized in carbon analysisspecialized in carbon analysis
Association with Association with Brazilian and Brazilian and multinational multinational companiescompanies
Food, automotive and Food, automotive and cosmetic industriescosmetic industries
17
Strong and consistent spread over international prices
Source: CMAI / Braskem
PVC: Braskem premium over internationalPVC: Braskem premium over international
PP: Braskem Premium over InternationalPP: Braskem Premium over InternationalPE: Braskem Premium over InternationalPE: Braskem Premium over International %% %%
%%
27%
34%
jan/
05m
ar/0
5m
ai/0
5
jul/0
5
set/0
5no
v/05
jan/
06m
ar/0
6m
ai/0
6
jul/0
6
set/0
6no
v/06
jan/
07m
ar/0
7m
ai/0
7
jul/0
7
set/0
7no
v/07
jan/
08m
ar/0
8
Spread PEAD Braskem / International US$
Average 27%
42%33%
jan/
05m
ar/0
5m
ai/0
5
jul/0
5
set/0
5no
v/05
jan/
06m
ar/0
6m
ai/0
6
jul/0
6
set/0
6no
v/06
jan/
07m
ar/0
7m
ai/0
7
jul/0
7
set/0
7no
v/07
jan/
08m
ar/0
8
Spread PP Braskem / International US$
Average 30%
42%
52%
jan/
05m
ar/0
5m
ai/0
5
jul/0
5
set/0
5no
v/05
jan/
06m
ar/0
6m
ai/0
6
jul/0
6
set/0
6no
v/06
jan/
07m
ar/0
7m
ai/0
7
jul/0
7
set/0
7no
v/07
jan/
08m
ar/0
8
Spread PVC Braskem / International US$
Average 42%
Drivers
•High value-added product mix
•Development of new products
•Logistics constraints as a barrier for imports
•Import tariffs
•Reliability of supply
•Market knowledge
•Technical support for product
applications
18
AgendaAgenda
� Overview
� Key Differentiators
� Key Financial & Operational Figures
� Upside Drivers
18
19
Production growth with higher operating reliability
PE PP PVC
1Q084Q07
ETHYLENE
93%
95%
Source: Braskem
Resin ProductionResin Production KtonKton
1Q07
86%
96%
Capacity Utilization Capacity Utilization %%
ALL-TIME RECORDS
� Production in the last 12 months of 2,827 Kton
� Quarterly PVC production of 130 Kton in 1Q08
1Q084Q071Q07 1Q084Q071Q07 1Q084Q071Q07
88% 89%91%
96% 96%96%94%
104%
92%
702
1Q084Q07
704
LTM1Q08
LTM 1Q07
2,786 2,827
+1%
700
1Q07
20
Continued leadership position in growing domestic market
Source: Braskem / Abiquim
Domestic Sales 1Q08 vs. 1Q07 Domestic Sales 1Q08 vs. 1Q07 %% Resin Market Share 1Q08Resin Market Share 1Q08
+13%
+ 5 %+7%+ 6%
PVCPPResin
BraskemPE
Other
Imports
49%49%
22%
29%
*Domestic sales + Imports in kton
21
Resilience performance in a challenging scenario
R$ million
Source: Braskem * Pro Forma Figures
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
22
648
4Q07 1Q08PricesFixed Costs/ SG&A
Volume Foreign Exchange
Source: Braskem
Raw Materials
188
Other
Evolution of EBITDA Commercial strategy and reduction in fixed costs minimize impacts from higher Naphtha prices
Evolution of EBITDA Commercial strategy and reduction in fixed costs minimize impacts from higher Naphtha prices
583
112
19
(32)
FX impacton costs
FX impacton revenue
(263) (136)
83
(115)
(89)
R$ million
Higher international prices coupled with strong pricing power in the domestic market
Fixed cost reduction and lower export volumes
5% increase in US$/t naphtha prices
Extraordinary sales volume in 4Q07
23
2016 /2017
Source: Braskem
Lengthening of debt profileis a priority and is in course
in R$ million (3/31/08)
3/31/08
1,932
Gross Debt: 9,363
Net Debt: 7,431
2008
In US$
In R$
Cash and equivalents
2009 2010 2011 2012 /2013
2014 /2015
2018 /2020
Perpetual
13%13%
9%9%8%8%
6%6%
16%16%
7%7%
US$ 73%
* Includes R$2.1 billion from bridge loan to acquire Ipiranga Group’s petrochemical assets
9%9%
Average Term:10 years*
22%22%
974974
10%10%
1,2411,241
792
767767 827827 786786894894
534534 617617 614614
1,1431,143
789789
441
2.56
Dec-07 Mar-08
1.93
+33%
Net Debt / EBITDA (x)
Pré-fixado
2%
Bridge
Loan
23%
US$
23% Trade
Finance
27%
CDI
17%
TJLP
8%
US$ 500 million Bond Issuance (~ R$ 875 MM)
875
875
* Average Term after the US$ 500 million bond issuance is 11 years
24
AgendaAgenda
� Overview
� Braskem Key Differentiators
� Key Financial Figures
� Upside Drivers
24
2525
� R$ 200 million on annual and recurring basis in the EBITDA
25
NPV of US$ 1.1 billion in total synergies from Ipiranga acquisition
R$ million
200
TotalSynergies
69
Commercial Financial
9
Industrial
73
SupplyLogistics
25
Others
Source: Braskem
1410
Synergies in 2008 (R$ 108 million)
Total Synergies
26
Accelerated Synergies in 1Q08:R$ 136 million in annual and recurring gains
R$ million
Source: Braskem
Commercial
Industrial
Supply
Logistics
Synergies 1Q08
16
42
7
10
2008
39
29
16
13
Financial ex-Ebitda 59
Financial 2 7
Others 1 4
Actual Goal
Annualized
Benefit on EBITDA 77 108
80
272727
�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
Additional gains of R$ 100 million with Fixed Costs Reduction Program
282828
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
29
Ethylene global supply & demand balanceHigh capacity utilization rate in 2008
Source: CMAI, March of 2008
Supply Demand Utilization Rate
131140
149 154
119124
131 136
88%88%88%88%89%89%
91%91%
0
20
40
60
80
100
120
140
160
180
2008 2009 2010 2011
75
80
85
90
95
100
Utilization Rate %MM ton
160
142
89%89%
2012
75
80
85
90
95
100
1 2 3 4 5
SIPCHEM* shelves plans for 1.3 MM ton cracker at Al-Jubail in Saudi Arabia
* SIPCHEM - Saudi International Petrochemical
30
Global supply & demandHigh Ethylene Utilization Rate in South America
EthyleneMM tons
159
Supply2012
9
Saudi Arabia Others
9
Supply2007
126
IranChina
8
Qatar
43
EHYTLENE UTILIZATION RATE (EHYTLENE UTILIZATION RATE (’’0707--’’12)12)
WORLD WORLD ≥≥≥≥≥≥≥≥ 88%88%
SOUTH AMERICA SOUTH AMERICA ≥≥≥≥≥≥≥≥ 92%92%
NORTH AMERICA NORTH AMERICA ≥≥≥≥≥≥≥≥ 85%85%
30
Source: CMAI
31
Meaningful organic growth …
Source: Braskem
Braskem Capacity Additions (2008-12)
* JV with Pequiven (49%) and Sojitz (2%)31
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
NA: Not Available
Reinvestment spread prudently
• (1) over time, (2) across geographies and (3) with diversified feedstock
32
…resulting in further improvement in cost competitiveness via scale and efficiency
NaphthaFeedstock from Refinery
Ethanol
Camaçari - BA
Triunfo - RS
Paulínia - SP
Venezuela
9%9%
57%57%34%34%32%32% 55%55%
4%4%9%9%
Natural GasPolyethylene Polypropylene PVC
2008 2012 FYE
4.9 million
1,815
1,110
515515
3.4million
715
1,635
2,565
+43%
� Larger scale � Increased Competitiveness
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
34
EV/EBITDA (x)
NOVA Chemicals
8.8
Mexichem SolvayUnipar
12.1
WestlakeDow Braskem
# 1 in Domestic Market Share, #2 in Profitability and # 3 in Growth: not yet translated into the stock price
LG Chemicals
4.8
7.0 7.05.8
50% upside 50% upside potential to the potential to the average peer average peer EV/EBITDA EV/EBITDA multiplemultiple
5.5 5.5
Average – 7.1
Source: Avi Nash LLC
Braskem: High Upside Potential
353535
Braskem: High Upside Potential
Commitment to SustainabilityCommitment to Sustainability
� 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
1st Annual 1st Annual CitiCiti Brazil Brazil
Equity ConferenceEquity ConferenceJune 2008June 2008