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Meeting with Meeting with InvestorsInvestorsInvestorsInvestors
Forward-looking Statements
This presentation contains forward-looking statements. These statements are not
historical facts and are based on management’s objectives and estimates. The
words "anticipate", "believe", "expect", "estimate", "intend", "plan", "project",
"aim" and similar words indicate forward-looking statements. Although we believe
they are based on reasonable assumptions, these statements are based on the
information currently available to management and are subject to a number of
risks and uncertainties.
2
risks and uncertainties.
The forward-looking statements in this presentation are valid only on the date
they are made (September 30, 2010) and the Company does not assume 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.
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
3
� The petrochemical industry
� Final considerations
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
4
� The petrochemical industry
� Final considerations
Overview
� Braskem has become the leading thermoplastic company in the Americas with Quattor acquisition in January 2010
� Foothold in the USA with Sunoco PP assets acquisition in February 2010
� Attractive project pipeline in Latin America
� Listed in 3 stock exchanges: BM&FBovespa, NYSE and Latibex - 100% tag along
�Market Cap (01/10/2011) – US$ 9,5 billion
� EV – Net debt at Sep 2010 – US$ 15,4 billion � 3 PP
�Diversified portfolio of petrochemical products, with focus on PE, PP and PVC
� Annual capacity of 6,460 kton
� 31 facilities in Brazil and USA
� Naphtha and gas based crackers
� Petrobras as the main supplier in Brazil
Financial Highlights
5
Industrial Assets
� 1 gas cracker� 1 PP� 1 PE
� 1 naphtha cracker� 2 PP� 3 PE
� 1 naphtha cracker� 1 ethanol cracker� 5 PE� 2 PP
� 1 PVC� 1 Chlorine-soda
�1 naphtha cracker� 4 PE� 1 PP� 1 PVC�1 Chlorine-soda
2009 LTM Sep/10
∆R$ billion
BraskemStand alone
Consolidated
Net Revenue 15.2 26.3 + 73%
EBITDA 2.5 3.8 + 52%
Net Debt/EBITDA 2.67x 2.63x - 1%
Financial Highlights
Potential Upside
� Synergies:
- Additional EBITDA – R$ 400 million on a recurring basis
� Expectation of cycle recovery as of 2012
2020
Polialden
Ipiranga, Copesul and Paulínia
Petroquímica Triunfo
Track record of success with clear objectives
Acquisitions Quattor + Sunoco
Leader in Latin America
Leader in the Americas
2010Politeno
54% capacity increase
80% capacity increase
Acquisitions
Organic Growth
Resins Capacity (kton/y)
1,821
520
2,341
2,185
1,410
3,595
2,185
4,275
6,460
20022006
2007
Polialden
6
2.72x2.72x 3.73x3.73x 2.84x2.84x
Net Debt/EBITDA (R$)
2.67x2.67x
Aft
er
R$
3.7
4 b
i c
ap
ita
l in
cre
as
e and
dis
bu
rse
me
nt
of
Qu
att
or
an
d S
un
oc
o
ac
qu
isit
ion
s
2006
20032004
2005
20082009
2010OPP Trikem
Politeno
2.63x2.63x
2Q10
Source: Braskem
3Q10Currency Devalution in 2008 crisis
Ownership Structure Leveraging relationship with Petrobras
50,1% / 38,2%
MinorityShareholders
47,1% / 35,8%
Voting Shares / Total Shares
0,0% / 5,9% 2,8% / 20,1%
- World leader in E&P in deep waters;
- Present in the industry as investor, supplier and client;
- Investment Grade by all 3 Rating Agencies.
- Leader in Construction in Latam;
- More than 30-years in the petrochemical industry;
- Investment Grade by Moody’s and Fitch.
7Source: Braskem
• Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned company
• Odebrecht appoints Chairman, CEO and CFO.
• Mutual right of preference between Odebrecht and Petrobras in case of decision to sell shareholder interests inthe company
• Sole vehicle for petrochemical investments of both shareholders, Braskem has the right:
- to lead all petrochemical investments identified by Petrobras;
- if not of its interest, has the right to commercialize such products.
Go
ve
rna
nce
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
8
� The petrochemical industry
� Final considerations
Quattor - key indicators
R$ million 1Q10 2Q10 3Q10
Operating rate (%) 1Q10 2Q10 3Q10
Ethylene 71%(1) 83%(1) 89%(1)
PE 61% 76% 84%
Operational Indicators
Financial Indicators
Acquisition opportunities
� Asset concentration in Southeast (~70% Brazilian consumption);
� Diversified RM matrix;
� Joint administration of raw material agreements;
� Integrated industrial planning;
� Reduction of working capital costs;
� Tax and logistical synergies.
9
Net Revenue 1,220 1,425 1,663
EBITDA 107 214 302
EBITDA Margin 8.8% 15.0% 18.2%
Main impact on operational profit in 3Q10
� Increase in operating rates with better stability of raw material supply: supply from Mauá complex normalized in May 2010.
(1) Considering the 200 kty expansion
Outlook as of 9M10
� Cabiúnas and Reduc refineries normalized operation enabled Riopol to have better operating rates in the 3Q10: 81% for ethylene and 82% for PE;
� Petrobras’ commitment to normalize supply to enable Riopolto operate at full capacity by January 2011.
� Tax and logistical synergies.
Disbursement: R$647.3 million+99% +41%
Quattor synergies of R$ 400 million in EBITDA* as of 2012
279
400
79
43R$ million
173
235
49
13R$ million
Synergies 2012 Synergies 2011
* Annual and recurringSource: Braskem 10
279
Industrial Logistics Supply EBITDA Synergies
Industrial Logistics Supply EBITDA Synergies
� Production mix
� Seizing the cracker streams
� Optimization of inventories
� Maximization of gains from product distribution (domestic and export markets)
� Optimization of channels
� Joint management of feedstock purchases
� Renegotiation of third-party agreements
Efficient and rapid implementation of actions to capture synergies: additional of R$ 235 million in
EBITDA* as of 2011
Braskem America (former Sunoco Chemicals)
Marcus Hook, PA� 1 PP
R&T Center
Pittsburgh, PA
Neal, WV� 1 PP
Acquisition opportunities
� Global-scale, state-of-the-art assets – technology and age similar to Brazil’s polypropylene (PP) assets;
� Development of a global production base;
� Consolidation of industrial assets;
� Competitive costs for some 70% of raw materials;
11
La Porte, TX� 1 PP
Challenges
� Knowledge of North American distribution market;
� Add value to supplier ⇔ client chain (substitute distributor);
� Highly disperse market;
� Resumption in demand vs. uncertainty of economic recovery.
R$ million 9M09 9M10
Net Revenue 1,252 1,737
EBITDA 112 162
raw materials;
� Platform for greenfield projects in Latin America.
Disbursement: US$350 million
Financial Indicators
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
12
� The petrochemical industry
� Final considerations
“BECOME THE GLOBAL
SUSTAINABLE CHEMICAL
LEADER, INNOVATING FOR
Strategic direction
LEADER, INNOVATING FOR
BETTER SERVE THE
PEOPLE”.
13
� First Green Plastic Certified in the World
� Location: Triunfo – RS (Brazil)
� Capacity: 200 Kton/y
� Startup: September 2010
� Investment: R$ 488 million
� Consumption of 460,000 m³ of ethanol per year
� 75% of the ethanol supply is already contracted
POLYETHYLENE
Green polyethylene
� Main Clients and Partners� Demand 3x higher than the installed capacity
����Partnership in R&D – Renewable Polymers
���� Green PE trading in Asia
14
Growth strategyOn the path to leadership in sustainable chemicals
Green PE
2010
Green PP
2013
�Successful track record for
�Innovation in bioplasticmarket
�Production integrated with
Innovation
Pipeline
�Meet global demand for sustainable products
�Guarantee CO2 sequestration
�Partnerships for the development of competitive �Successful track record for
implementing projects: term and costs
�Capture of 2.5t CO2/t PE
�Partnership with Clients
�Production integrated with green propylene
�Capture of 2.3t CO2/t PP
development of competitive technologies
�Cooperation agreement with Cenpes (Petrobras Research Center)
�Development of other cracks streams
Braskem becomes a global leader in
biopolymers
15
Expansion with increased competitiveness
BRAZIL
PVC Expansion
Operational start-up : 1st half 2012
• Expansion of 200 kton/y in PVC capacity in Alagoas
• Investments of US$470 million
• Expected NPV ~US$450 million
• Disbursements already in 2Q10
2006 2007 2008 2009 2010 LTM
Imports
Domestic Sales
748
950982857
1,113
17%
31%26%34%19%
16Source: Braskem
Industrial Assets
New Projects
• Support for Brazil’s infrastructure projects
• Brazil currently imports 30% of its needs
PVC Domestic Demand (kton)
Growth strategyProjects with competitive materials
Ethylene XXI Project
Characteristics
� Startup: 2015
� JV Braskem (65%) and IDESA (35%)
� Integrated project: 1 Mton ethylene and 1Mton PEs
� Investment: US$ 2.5 billion
� Financial advisor: Sumitomo
PEMEX Gás (Basic Petrochemicals)
Cracker Ethane
Ethane
66,000 bpd 1,000 kton/y
Gas
Polyethylene
Ethylene
MEXICO
Focus 2010/2011
� Selection of technology
� Definition of EPC agreement and project’s FEED
� Structuring of Project Finance: already received US$ 3 billion in letters of interest
Proj. EXXI in 2014
Attractiveness
� Today Mexico imports around 70% of its demand (1.8 million ton/year of PE)
� 1st quartile in cost curve
� Fragmented market: 3,500 converters
1,000 kton/y
PEMEX Exploration and Production
Manufacturing Industry
17
Unique pipeline of growth in the Americas
� Green PE(+ 200 ktony ethylene)
� Ethylene XXI - Mexico(+ 1,000 ktony ethylene and + 1,000 ktony PE)
� Green PP
� PeruProj. (+ 600 to 1,000 ktony ethylene/PE)
� Projects in Venezuela(+300 ktony PP) (integrated ethylene/PE)
� Comperj
Consolidated Project Pipeline
� Resin Capacity CAGR for 2010-2015: +4.3% p.y.
� Diversification of raw materials and world-class assets
� Fiscal discipline
� Excellent track record of projects execution
2010 - 2012 2013 - 2015 Projects under evaluation
(+ 200 ktony ethylene)
� PVC Expansion (+ 200 ktony)
� Green PP(+ 30 ktony ethylene)
� Comperj
Source: Braskem
Consolidated Project Pipeline
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
19
� The petrochemical industry
� Final considerations
� Braskem’s EBITDA in the past two quarters was R$ 1 billion,in a scenario marked by the downcycle of the industry and Real appreciation
� Crackers have continuously improved their operation rate and in the 3Q10 it was over 90% for the first time since the asset merger
� Braskem’s domestic resin sales in 3Q10 rose 17% from 2Q10 and in 9M10 rose 11% from 9M09
Highlights
Braskem EBITDA
R$ million
+24%
2,403
2,981
9M09 9M10
*EBITDA in Last 12 Months (LTM); ** Includes the bond issue in October and call in December 2010 of the US$150 million in perpetual bonds with coupon of 9.75%
� Braskem is committed to its financial solidity: Net Debt/EBITDA* ratio fell from 3.46x (acquisition in January 2010) to 2.63x in the quarter
� US$ 1.2 billion raised in perpetual and 10-year bonds, reduced bank exposure and improved debt costs, lengthening its pro-forma average debt term to 11.9** years
� Start up of the Green Ethylene plant led Braskem to become the global leader in biopolymers
� Advances in the process of integrating and improving the performance of the Quattor assets
• 3Q10 EBITDA was R$ 302 million compared to an average of less than R$ 150 million prior to the acquisition
• Synergies implemented total R$ 235 million in annual and recurring EBITDA for 2011
• SEAE and SDE of the Ministry of Justice recommend to CADE the unqualified approval of the Quattor acquisition
20
Value added products and potential market growth are key differentiators of value creation
Brazilian Market - Consumer driven (9M10)
Agribusiness
Electric & Electronic
Industrial Infrastructure
Others
Chemicals & Agrochemicals
5%
6%
3%4% 2%
37%CONSUMER GOODS
Braskem Sales by Sector9M10 X 9M09
21Source: Braskem
Food Packaging
Retail
Consumer Goods
Hygiene and Cleaning
Cosmetics & Pharmaceutical
Automotive
Construction33%
7%
11%
8%
3%
6%
11%
3%
6%
31%
43%
11%
4%
DURABLE GOODS
AGRIBUSINESS
CONSTRUCTION
OTHERS
Historical Prices
PE prices evolution (100 basis) PP prices evolution ( 100 basis)
90
100
110
120
130
140
90
100
110
120
130
140
22
International Market Brazilian Market International Market Brazilian Market
4Q10
� Higher prices in the international market
� Recovery in the domestic market already in September
Source: CMAI
80
apr/09
jun/09
aug/09
oct/09
dec/09
feb/10
apr/10
jun/10
aug/10
oct/10
dec/10
80
apr/09
jun/09
aug/09
oct/09
dec/09
feb/10
apr/10
jun/10
aug/10
oct/10
dec/10
Innovation pipeline: new developments to aggregate further value
PE Rotomolded Manhole
PE Largewatertanks
Structured resource base to support client needs
� Over US$ 330 million in R&D assets
� More than 190 researchers
� 8 pilot plants
� More than 260 patents filed worldwide
� Partnership with universities and R&D centers in Brazil and abroad
Applied Innovation and technology to strengthen value chain competitiveness
23
PE
BiopolymersInnovation pipeline
NPV: ~US$ 500 million PP
PVC
PVC Roof Tiles PVCWindows
PP auto grade PPBuckets
� Partnership with universities and R&D centers in Brazil and abroad
Raw material matrixDiversification to compete globally
Raw Material Profile* (2010) Braskem Post-Acquisitions** Braskem Post-Projects***
Implementation of Project Pipeline
46%
14%
92%17%
56%
8%
37% 30% 13%
17%
67%
3%
24%
15%58%
3%
�More balanced and diversified supply of raw materials
�Competitive natural gas price vs. international reference prices
(1) Ethane, Propane and HLR(2) Naphtha and condensate
*Based on resin-production capacity. Sunoco buys propane directly** Considering Green Ethylene capacity *** Considering the Mexico Project
Propane
�USG reference to competitive prices
Natural Gas
� 100% Petrobras supply with competitive prices versus international prices
Ethanol
Naphtha / Condensate
� ~70% of naphtha supplied by Petrobras with competitive price formula
� 30% direct imports from various international suppliers
Quattor Sunoco Braskem
Liquid (2) Refinery propylene Gas (1)
Ethanol
24
Lower leverage and longer average debt term
* Including the perpetual bond issue in October and the call in
December 2010 of US$ 150 million in perpetual bonds. Average term
increases to 11.9 years
762
13%
10%
16%14% 14%
13%17%
3,505
2,781*
501
3.46x
2.63x
-24%
Net Debt/ EBITDA
(R$ million)
25
2,743
386
1,747
1,375
2,155 1,9461,889
1,6832,281
2010 2011 2012 2013 2014 2015/
2016
2017/
20182019
onwards09/30/10
Cash
3%
10%13%
Does not include transaction costs
Invested in US$
Invested in R$
Debt P
rofile More balanced source
of fundsBank 37%
Capital
Market 37%
Gov. Entities
26%
Foreign
Entities 0%
Bank 52%
Capital
Market 21%
Gov. Entities
22%
Foreign
Entities 5%
Dec 09 Sep 10
-
BB+
BB
BB-
stable
RATING
Ba1
Ba2
Ba3
-
+BBB-Baa3
Jan/09 +May/09
Jan&Jul/10
Post-Acquisitions
Investment Grade
Upgrade Conditions:
Maintenance of high liquidity (cash or equivalents -stand-by) above R$3 billion. Cash above R$3 billionsince Dec/2008.
Capitalization of Braskem as pre-condition foracquisition. Shareholder movements;
Successful integration with capture of synergies andincrease in cash generation (EBITDA increase R$ 3,1bi to R$3.8 bi);
�
�
�
Braskem:Reaffirmed post-acquisition ratings
Source: Braskem
BB-
B+
Ba3
B1
2009 2010
Post-Acquisitions
The acquisitions:
Strengthened strategic positioning;
Increased # of plants, sites and geographic diversification;
Diversification of raw material mix;
More disciplined and less volatile domestic market ;
High governance standards;
Petrobras participation.
Decrease in Net Debt/EBITDA ratio expected to2.5x. In first post-acquisition quarter we alreadyreduced this ratio from 3.46x to 3.12x. In 2Q10 wereduced to 2.84x, and to 2,63x in 3Q10.
Braskem Ratings (Global Scale)
BB+ / Stable Outlook
Ba1 / Stable Outlook
BB+ / Positive Outlook
26
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
27
� Final considerations
� The petrochemical industry
Outlook on the global petrochemical industry
Ethylene: Operating rate 9M10
Industry at 9M2010
� Operating rates increased from 2Q10 supported by better demand
� Competitive cost base allows the US to operate at higher rates than other regions
� Braskem continuously improving its operations reached 91% in 3Q10
000 ton
84
94
8278
86
91
79
86 83
77
81
89
50
60
70
80
90
0
5,000
10,000
15,000
20,000
Europe N. America Asia M. East World Braskem
28Source: CMAI , Parpinelli Tecnon
Global Scenario
� New capacity additions can lead to the closing down of non competitive assets on a permanent basis, especially in Europe and US
� Global economic outlook volatility versus petrochemicals demand
� Lower operating rates indicate 2010 as the trough of the cycle
� Expectation of improvement in the industry profitability as of 2H11
Ethylene: Supply and Demand Balance
000 ton
83.880.4
83.1
87.0 88.490.5
0
50,000
100,000
150,000
200,000
2009 2010e 2011e 2012e 2013e 2014e
Capacity Demand Operating Rate 2010e (%)
Europe N. America Asia M. East World Braskem
Capacity 3Q Operating rate 3Q10 (%) Operating rate 2Q10 (%)
Leadership in Brazil – strong potential growth
Industrial Assets Brazilian’s thermoplastic demand – Million tonsPotential Growth
3,7
4,04,2 4,3
4,9
29
Per-capita consumption of PE, PP and PVC (kg/person)
Brazil USAEurope
JapanChina
22,2
6357
41
28
69%25%
6%
Others
BraskemImports
Market Share9M10
2006 2007 2008 2009 2010E
Agenda
� Braskem
� A global player
� Acquisitions: opportunities and challenges
� Project pipeline: growth with value creation
� Braskem consolidated
30
� Final considerations
� The petrochemical industry
Priorities
Existing assets
Maintaining growth in domestic sales in relation to 2009, aligned with the better performance of theBrazilian market (GDP and demand growth should exceed 7% and 12%, respectively)
Strengthening the relationship with our Clients, adding value and differentiation to our products andservices and consolidating the market share to prevent imports
Ensure capture of the identified synergies
Adding value through the acquired assets
� Quattor: continue improvement in its operational efficiency
� Braskem America: return above capital employed
31
� Braskem America: return above capital employed
Financial
To balance the investments and dividends equation
Leverage reduction to achieve investment grade credit rating
Maintaining liquidity and financial discipline
Growth
Expand the use of renewable feedstock maintaining the leadership in bioplastics
Implementing Projects in Latin America, which are based on competitive raw materials
Green Chemicals
To strengthen the Brazilian Petrochemical Sector, ensuring the supply of local competitive rawmaterial
Pr/share BRKM5 Performance
+
Why Braskem?
Consolidated (R$ billion) 3Q10 Multiple
EBITDA LTM 3.8
Synergies to 2012 4.2
Market Capitalization 16.1 18.8
EV 26.0 29.7
EV/EBITDA 6.9x 7.8x**
Price per share 20.2* 28.2
Proj. NPV to 2012 > R$1.12 bi
Value added by projects to
share price1.40
0
5
10
15
20
25
30
35
40
� Largest thermoplastic resin producer in the Americas
� Leader of important projects in Latin America with
competitive raw materials
� Emerging consumer market with potential per-capita growth
as additional driver
� Above-peer profitability
� Access to one of the world’s largest consumer markets
following the U.S. acquisition
� Successful trajectory of organic growth and acquisitions
� Shareholders hold long-term view with strategic synergies
for growth and value creation
� Leader in green chemicals
� Huge potential for value creation
� EBITDA increase
� EV/EBITDA multiple below
peers’ multiple (7-9x)
32
*BRKM5 as of 12/21/10 ** Peer Multiple Dec/2010
Source: Bloomberg.
share price1.40
R$ USD
Meeting with Meeting with InvestorsInvestorsInvestorsInvestors
AppendixAppendixAppendixAppendix
Leader in the Americas and a top 8 global player in resins capacity
4th
1st
Ca
pa
city
in th
e A
me
rica
s (
kto
n/y
)
3,035
4,077 4,200
2,525 1,995 2,311
2,915 1,230
627
1,731
1,090
822 875
510
510
1,210
2,340
PVC
PP
6,460
4,827
3,595
4,256
3,082
2,340 2,3111,915
5,307
950
Lyondell Basell
ExxonMobil
SINOPEC Dow Formosa SABIC Ineos Braskem post
operations
Total IPIC Reliance PetroChina Braskem
10,914
9,3118,668
7,749 7,284 7,1096,541 6,460
4,681 4,564 4,303 4,079 3,595
transactions 35
8th
12th
Ca
pa
city
in th
e A
me
rica
s (
World
Ca
pa
city
(kto
n/y
)
Braskem post
transactions
Exxon Mobil
Dow Lyondell Basell
Braskem Formosa Shintech Chevron Philips
Quattor Sunoco
2,525 1,995
1,050
2,311
1,040 950
2,340 PP
PE
125130 133
143 146 146151 154
114 111 111 115121
127133
140
Global Ethylene supply/demand
Global ethylene supply / demand (Mton/y)
2007 2008 2009 2010 2011 2012 2013 2014
Supply
Demand
36Source: CMAI, June 2010
- Not considering additional delays and shutdowns- Considering world GDP growth of 2.5% – 3.0% in 2011
78 79 83 90 92 93 97 99
49 51 5560 64 64 66 68
41 44 4547 49 51 51 52
PVC
PP
PE
168
215209205198182173
219
Global Resins supply/demand
Global Resins (PE, PP, PVC) Supply (Mton/y)
2007 2008 2009 2010 2011 2012 2013 2014
69 66 67 71 75 79 83 88
44 43 44 47 50 53 57 6035 32 32 34 37 39 41 43
PVC
PP
PE
149
181172161
152143141
191
2007 2008 2009 2010 2011 2012 2013 2014
37Source: CMAI, June 2010
Global Resins (PE, PP, PVC) Demand (Mton/y)
* Compounded Annual Growth Rate
Resins demand by region
2010 Resins (PE, PP, PVC) Demand by region
Africa
3%
Europe
18%
China
27%
38Source: CMAI, June 2010
North America
17%
South America
6%Middle East
6%
Asia ex-China
23%
The Brazilian demand for resins represents 3% of global demand
254
7210
191
360
35
12
56
1,011
1,617
Quattor
Quantiq
VenezuelaBraskem America
Mexico
Green PE
Investments in 2010 amount to R$1.6 bi
InvestmentsR$ million
66
20831
61175
317
18
52
116
192
311
47
191
9M10 2010e
Equipment Replacement
Capacity Increse/PVC Alagoas
Maintenance
Others
Productivity
39
Industrial Assets
New Projects
Source: Braskem
* For 2011, capex is estimated at R$ 1.6 billion, which approximately 30% destined to
projects of capacity expansion, 20% to scheduled maintenance shutdowns, and the
remaining to operational investments and spare parts.
Increase in Quattor capacity operating rate positively impacted 2Q10
Braskem consolidated operating rate %%
91% 89% 91%83% 83% 88% 86% 81%
90%100%
87%97%
Ethylene Polyethylene Polypropylene PVC
**
40
� Quattor better performance:
� 6 pp growth in ethylene operating rate – 89% in 3Q10 versus 83% in 2Q10
� 8 pp growth in PE operating rate – 84% in 3Q10 versus 76% in 2Q10
� 7 pp growth in PP operating rate – 71% in 3Q10 versus 65% in 2Q10
� Crackers and 2nd generation plants increased operating rates during 3Q10
* 2009 data does not include Quattor expansion of 200 kton
Source: Braskem
3Q09* 2Q10 3Q10 3Q09* 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10
World indicative ethylene cash costs
Source: CMAI 41
Revenues breakdown – 3Q10
BTX* 7%
Cumene 2%
ETBE 2%
Fuel 3%Others 7%
Net Revenue By Product (1)
3Q10
42Source: Braskem
Resins 66%
Ethylene 4%
Propylene 3%
Butadiene 5%
(1) Does not include naphta / condensate/ crude oil processing and distribuitor sales
*Benzene, Toluene, Paraxylene and Othoxylene
COGS breakdown – 3Q10
Natural Gas 2%
Other Variable
Costs 8%
Labor 3%Services 2%
Others 1%
Deprec / Amort
7%
COGS 3Q10
43Source: Braskem
Naphtha 54%
Gas as feedstock
18%
Electric Energy
5%
Natural Gas 2%
1 Does not include naphtha / condensate / crude oil processing and Quantiq costs
Exports Destination – 3Q10
North America
28%
Europe 21%
Asia 7%
Others 1%
Exports Destination
3Q10
44Source: Braskem
The Export Market represents 29% of Company’s Net Revenue.
Central America
9%
South America
34%
R$ million
EBITDA Trends 2Q10 Pro Forma vs. 3Q10
1,042
301
1,030
FX impact
on costs 95
FX impact on
revenues(160)
Higher sales volume was impacted by lower margins, due to
the narrower spreads in the international market (a trend
that reversed only in August) and to the BRL appreciation
Source: Braskem45
1,042
22865 10 11
1,030
EBITDA
2Q10
Volume Contribution
Margin
FX Fixed Costs
SG&A
Others EBITDA
3Q10
( )( ) ( ) ( )
Debt Profile
Foreign Gov.
Entities
1%
Brazilian Gov.
Entities
27%Capital Market
33%
Gross Debt by Category
CDI
11%
PRE
6%
TJLP-6
20%
Outros
1%
Gross Debt by Index
Source: Braskem46
Working Capital
8%Operações
Estruturadas
31%
33%
Trade Finance
22%
No Trade Finance
40%
62%
Outstanding Bonds & Outstanding Ratings
Outstanding Bonds MaturityCoupon
(% p.a.)
Yield *
(% p.a.)
US$250 MM Jan/2014 11.750 3.7
US$250 MM Jun/2015 9.375 4.4
US$275 MM Jan/2017 8.000 5.3
US$500 MM Jun/2018 7.250 5.6
US$750 MM May/2020 7.000 5.9US$750 MM May/2020 7.000 5.9
US$450 MM Perpetual 7.375 7.3
Agency Rating Outlook Reviewed in
Fitch Ratings BB+ Stable 03/02/2009
S&P BB+ Stable 05/28/2009
Moody’s Ba1 Stable 05/21/2009
Corporate Credit Rating – Global Scale
* As of November, 8th
Source: Braskem / Bloomberg47
Covenants
2.75
Sep 10
Net Debt / Ebitda (x)
2.63
Sep 10
R$US$
Facility Amount* Jun 10 Currency Type
Senior Notes R$ 500 MM R$ 500 MM R$ Issuance
Nippon Export and Investment Insurance
US$80 MM US$49 MM US$ Maintenance
EPP (Export Pre-Payment)
US$725 MM US$625 MM US$ Maintenance
*The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt /
Ebitda ratio.
Source: Braskem48