Fernando Musa

Transformation through international expansion to meet challenging market conditions

NOVEMBER, 2017

Since its birth 15 years ago, Braskem has transformed itself from being a small company in Brazil to a large global player

0.50.80.90.9

0.6

3.6

2.82.42.2

2.02.22.3

1.61.4

1.6

3.3

EBITDAUS$ billion

Successful track record of organic and inorganic growthdriven by a strong internationalization strategy

2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2015 201620142008 LTM

Braskem Integration

Global Player

Brazil ConsolidationLeadership in LatAm

Leadership in the Americas

3

2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2015 20162014 20172008

Braskem was created in 2002 from the integration of 6 different companies in Brazil

Integration of a newly formed company

Key considerations after creation

Fragmented Brazilian industry

Subscale playerLimited product

portfolio

4

2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2015 20162014 20172008

Initial growth strategy was focused on gaining scale and leadership in the Brazilian market through acquisitions

Brazilian and South American Market Leadership through M&A2006

2007

2009

2008

Key considerations after consolidation

Non-advantaged feedstock cost

position

Limited size of domestic market

Economic/ Political

uncertainties

5

2009 2010 2011 2012 2013 2015 20162014 2017

Strategic acquisition to enter N. America and opportunistic acquisition to enter Europe, while continuing to invest in Brazil

Green PE

PVC plant

Butadiene

PP Plants Leadership in the Americas through Organic and Inorganic growth

2010

2012 2012

2010

2010

2012

2012

2002 2003 2004 2005 2006 2007 2008

Key considerations after internationalization

Leveraging scale and geographical

diversification

Business and cultural

integration

Portfolio of future

investments

6

2015

One of the Global Leaders in resins

2002 2003 2004 2005 2006 2007 2009 2010 2011 2012 2013 2015 20162014 20172008

Internationalization continued with additional investments in NAM and Europe – One of the Global leaders in resins

• 6th largest resins producer in the world

• Largest resins producer in the Americas

• Industrial operations in 4 countries

• Feedstock Diversification: Naphtha, Ethane & Propylene

New UTEC Plant

New PP PLant 2020

2017

2016

New EuropeanTech Center

7

After 15 years of expansion, Braskem has operations spread across 4 countries and sales in over 100 countries

Manufacturing Footprint

• United States

• Mexico

• Brazil

• Germany

Offices

Teams

United States – Mexico – Germany – Netherlands – Singapore

Brazil – Argentina – Colombia – Peru – Chile – Venezuela

Commercial

Footprint8

Internationalization has added complexity to the business but offered several important opportunities

Internationalization is more than just assets in

other regions

Increasing number of variables adds complexity

Benefits to existing business and new growth

opportunities

• Access to new markets

• Feedstock diversification

• Market and business portfolio diversification

• Cultural diversity

• New ways to solve old problems

• Different regulatory and political environments

• Unexpected market and customer needs and dynamics

• Different languages, work cultures and Time zones!

• Experience and Knowledge sharing

• Production, Supply chain and Logistics integration and coordination

• Global clients approach

• New sources and opportunities for future growth 9

Journey taught us to have a clear strategy and priorities, but be prepared to make opportunistic moves

Opportunities

Capabilities

Strategic Objectives

• Organic vs. Inorganic• Strategic vs. Opportunistic• Core vs. Adjacent• Short-term implementation

vs. long-term R&D

Ambitions

Prioritization

• Value Creation • Feasibility• Alignment with Strategy• Risks / Sensitivities

Scenarios

10

Purpose and Culture: key pillars for internationalization and addressing regional and global complexities

Corporate Culture

Decentralization

Planned Delegation

Driving Results

Social Responsibility

Human Centric

Braskem’s Purpose: Improve people’s lives by creating sustainable solutions through chemicals and plastics

11

Braskem Corporate Culture guides a management model where decentralization and planned delegation helps to address complexities of a global operation

Productivity and

Competitiveness

Pursue improvements in productivity and competitiveness of current operations focused on maximizing value creation

12

Transformation through internationalization is a core element of our strategy

First quartile

Operator

Strategic Objectives Ambitions

Geographic

Diversification

Grow our global footprintoutside Brazil, increasing our competitive scale, enhancing our leadership in the Americas, while exploring growth in other regions

Transformation through internationalization is a core element of our strategy

International

operations more

relevant than

home country

Strategic Objectives Ambitions

Feedstock

Diversification

Diversify feedstock profile, increasing exposure to light feedstocks

Transformation through internationalization is a core element of our strategy

Balanced

feedstock

position

Strategic Objectives Ambitions

Governance and

Reputation

Strengthen Braskem's image and reputation, among team members, society and investors, through advancements in compliance, sustainability, innovation and people management

Transformation through internationalization is a core element of our strategy

Recognition as

global leader and

as National Pride

in Brazil

Strategic Objectives Ambitions

Feedstock Diversification

Geographic Diversification

Governance and Reputation

Balanced feedstock position

International operations more

relevant than home country

Recognition as global leader and

as National Pride in Brazil

Productivity and Competitiveness First quartile Operator

16

Transformation through internationalization is a core element of our strategy

Strategic Objectives Ambitions

GPCA, November 29th 2017

Thank You!