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    Credit suisse conference Credit suisse conference Presentation Transcript

    • Meeting with Investors
    • Forward-looking StatementsThis presentation contains forward-looking statements. These statements are nothistorical facts and are based on management’s objectives and estimates. Thewords "anticipate", "believe", "expect", "estimate", "intend", "plan", "project","aim" and similar words indicate forward-looking statements. Although we believethey are based on reasonable assumptions, these statements are based on theinformation currently available to management and are subject to a number ofrisks and uncertainties.The forward-looking statements in this presentation are valid only on the datethey are made (September 30, 2010) and the Company does not assume anyobligation to update them in light of new information or future developments.Braskem is not responsible for any transaction or investment decision taken basedon the information in this presentation. 2
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 3
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 4
    • Overview Braskem has become the leading thermoplastic company Diversified portfolio of petrochemical products, in the Americas with Quattor acquisition in January with focus on PE, PP and PVC 2010 Annual capacity of 6,460 kton Foothold in the USA with Sunoco PP assets acquisition in 31 facilities in Brazil and USA February 2010 Naphtha and gas based crackers Attractive project pipeline in Latin America Petrobras as the main supplier in Brazil 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 PPFinancial Highlights 2009 LTM Sep/10 BraskemR$ billion Consolidated Stand alone 1 PVCNet Revenue 15.2 26.3 + 73% 1 Chlorine-soda 1 naphtha crackerEBITDA 2.5 3.8 + 52% 4 PENet Debt/EBITDA 2.67x 2.63x - 1% 1 PP 1 PVC 1 gas cracker 1 Chlorine-soda Potential Upside 1 PP 1 PE 1 naphtha Synergies: 1 naphtha cracker cracker - Additional EBITDA – R$ 400 million on a 1 ethanol cracker 2 PP 5 PE 3 PE recurring basis 2 PP Expectation of cycle recovery as of 2012 Industrial Assets 5
    • Track record of success with clear objectives 6,460 Resins Capacity (kton/y) 3,595 Acquisitions 2,341 4,275 1,410 Organic Growth 520 1,821 2,185 2,185 Leader in the 54% capacity 80% capacity Americas increase increase Leader in Latin America Acquisitions Petroquímica Quattor + 2020 Ipiranga, Copesul Triunfo Sunoco and Paulínia Politeno Polialden 2010 Trikem 2009 OPP 2008 2006 2007 2005 2004 2003 2002 2006 Quattor and Sunoco capital increase and disbursement of After R$3.74 bi acquisitions Currency Devalution in 2Q10 3Q10 2008 crisis 2.72x 3.73x 2.67x 2.84x 2.63x Net Debt/EBITDA (R$)Source: Braskem 6
    • Ownership Structure Leveraging relationship with Petrobras - World leader in - Leader in Minority E&P in deep Construction in Shareholders waters; Latam; - Present in the - More than 30-years industry as in the petrochemical 50,1% / 38,2% 0,0% / 5,9% 2,8% / 20,1% 47,1% / 35,8% investor, supplier industry; Voting Shares / Total Shares and client; - Investment Grade - Investment Grade by Moody’s and by all 3 Rating Fitch. Agencies. • Odebrecht as the controlling shareholder reinforces Braskem’s condition as a listed privately-owned company • Odebrecht appoints Chairman, CEO and CFO. Governance • Mutual right of preference between Odebrecht and Petrobras in case of decision to sell shareholder interests in the 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.Source: Braskem 7
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 8
    • Quattor - key indicators Operational Indicators Acquisition opportunities Operating rate (%) 1Q10 2Q10 3Q10 Asset concentration in Southeast (~70% Brazilian consumption); Ethylene 71%(1) 83%(1) 89%(1) Diversified RM matrix; PE 61% 76% 84% Joint administration of raw material agreements; Financial Indicators Integrated industrial planning; R$ million 1Q10 2Q10 3Q10 Reduction of working capital costs; Tax and logistical synergies. Net Revenue 1,220 1,425 1,663 Disbursement: R$647.3 million +99% +41% EBITDA 107 214 302 Outlook as of 9M10 EBITDA Margin 8.8% 15.0% 18.2% Cabiúnas and Reduc refineries normalized operation enabled Riopol to have better operating rates in the 3Q10: 81% for Main impact on operational profit in 3Q10 ethylene and 82% for PE; Increase in operating rates with better stability of Petrobras’ commitment to raw material supply: supply from Mauá complex normalize supply to enable Riopol normalized in May 2010. to operate at full capacity by January 2011.(1) Considering the 200 kty expansion 9
    • Quattor synergies of R$ 400 million in EBITDA* as of 2012 Synergies 2012 Synergies 2011 R$ million R$ million 13 43 49 79 400 235 279 173 Industrial Logistics Supply EBITDA Industrial Logistics Supply EBITDA Production Maximization Joint Synergies Synergies mix of gains from management Seizing the product of feedstock cracker distribution purchases streams (domestic and Renegotiation Efficient and rapid implementation of actions to export of third-party capture synergies: additional of R$ 235 million in Optimization markets) agreements of inventories EBITDA* as of 2011 Optimization of channelsSource: Braskem * Annual and recurring 10
    • Braskem America (former Sunoco Chemicals) Acquisition opportunities Global-scale, state-of-the-art R&T Center assets – technology and age similar Pittsburgh, PA to Brazil’s polypropylene (PP) assets; Development of a global production base; Marcus Hook, PA Consolidation of industrial assets; Neal, WV 1 PP 1 PP Competitive costs for some 70% of raw materials; Platform for greenfield projects in Latin America. La Porte, TX 1 PP Disbursement: US$350 million Challenges Financial Indicators Knowledge of North American R$ million 9M09 9M10 distribution market; Add value to supplier ⇔ client Net Revenue 1,252 1,737 chain (substitute distributor); EBITDA 112 162 Highly disperse market; Resumption in demand vs. uncertainty of economic recovery. 11
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 12
    • Strategic direction “BECOME THE GLOBAL SUSTAINABLE CHEMICALLEADER, INNOVATING FOR BETTER SERVE THE PEOPLE”. 13
    • Green polyethyleneFirst Green Plastic Certified in the World POLYETHYLENE 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 Demand 3x higher than the installed capacityMain Clients and Partners Partnership in R&D – Renewable Polymers Green PE trading in Asia 14
    • Growth strategy On the path to leadership in sustainable chemicals Innovation Pipeline Green PP 2013 Meet global demand for Green PE sustainable products 2010 Innovation in bioplastic Guarantee CO2 sequestration market Partnerships for the Successful track record for Production integrated with development of competitiveBraskem becomes implementing projects: green propylene technologiesa global leader in term and costs Capture of 2.3t CO2/t PP biopolymers Capture of 2.5t CO2/t PE Partnership with Clients Cooperation agreement with Cenpes (Petrobras Research Center) Development of other cracks streams 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$450 million • Disbursements already in 2Q10 • Support for Brazil’s infrastructure projects • Brazil currently imports 30% of its needs PVC Domestic Demand (kton) 1,113 New Projects 982 950 857 31% Industrial Assets 748 34% 26% 19% 17% Imports Domestic Sales 2006 2007 2008 2009 2010 LTMSource: Braskem 16
    • Growth strategy Projects with competitive materialsEthylene XXI Project MEXICO EthyleneCharacteristics Ethane 66,000 bpd 1,000 kton/y Startup: 2015 PEMEX Gás (Basic Petrochemicals) JV Braskem (65%) and IDESA (35%) Cracker Integrated project: 1 Mton ethylene and Ethane 1Mton PEs Gas Investment: US$ 2.5 billion Financial advisor: Sumitomo PolyethyleneFocus 2010/2011 1,000 kton/y Selection of technology Manufacturing Definition of EPC agreement and Industry PEMEX Exploration project’s FEED and Production Structuring of Project Finance: already received US$ 3 billion in letters of interestAttractiveness Today Mexico imports around 70% of its demand Proj. (1.8 million ton/year of PE) EXXI in 2014 1st quartile in cost curve Fragmented market: 3,500 converters 17
    • Unique pipeline of growth in the Americas Consolidated Project Pipeline PeruProj. (+ 600 to 1,000 ktony ethylene/PE) Ethylene XXI - Mexico Projects in Venezuela (+ 1,000 ktony ethylene (+300 ktony PP) and + 1,000 ktony PE) (integrated ethylene/PE) Green PE Green PP Comperj (+ 200 ktony ethylene) (+ 30 ktony ethylene) PVC Expansion (+ 200 ktony) 2010 - 2012 2013 - 2015 Projects under evaluation 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 executionSource: Braskem
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 19
    • Highlights Braskem’s EBITDA in the past two quarters was R$ 1 billion, Braskem EBITDA R$ million in a scenario marked by the downcycle of the industry and +24% Real appreciation 2,981 Crackers have continuously improved their operation rate and 2,403 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 9M09 9M10 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*EBITDA in Last 12 Months (LTM); ** Includes the bond issue in October and call in December 2010 of the US$150 million in perpetual bonds with coupon of9.75% 20
    • Value added products and potential market growth are key differentiators of value creation Brazilian Market - Consumer driven (9M10) Chemicals & Industrial Infrastructure Agrochemicals Braskem Sales by Sector 9M10 X 9M09 Others Electric & Electronic CONSUMER GOODS 4% 2% 5% 37% 3% Agribusiness 6% DURABLE GOODS 31% 3% Construction AGRIBUSINESS 43% 33% 11% CONSTRUCTION 11% Automotive 6% Food Packaging OTHERS 4% 3% 8% 7% 11% Cosmetics & Pharmaceutical Retail Hygiene and Cleaning Consumer GoodsSource: Braskem 21
    • Historical Prices PE prices evolution (100 basis) PP prices evolution ( 100 basis) 140 140 130 130 120 120 110 110 100 100 90 90 80 80 aug/09 aug/10 jun/09 jun/10 apr/09 feb/10 apr/10 aug/09 aug/10 apr/09 jun/09 feb/10 apr/10 jun/10 oct/09 oct/10 dec/09 dec/10 oct/09 dec/09 oct/10 dec/10 International Market Brazilian Market International Market Brazilian Market 4Q10 Higher prices in the international market Recovery in the domestic market already in SeptemberSource: CMAI 22
    • Innovation pipeline: new developments to aggregate further valueApplied Innovation and technology to strengthenvalue chain competitivenessStructured resource base to support client needs Over US$ 330 million in R&D assets PE PE Large More than 190 researchers Rotomolded water 8 pilot plants Manhole tanks More than 260 patents filed worldwide Partnership with universities and R&D centers in Brazil and abroad PE PVC Roof Tiles PVC Windows Innovation pipeline Biopolymers NPV: ~US$ 500 million PP PP auto grade PP Buckets PVC 23
    • Raw material matrix Diversification to compete globally Raw Material Profile* (2010) Braskem Post-Acquisitions** Braskem Post-Projects*** 3% 3% 8% 30% 13% 37% Implementation of 24% 17% Project Pipeline 17% 92% 58% 56% 15% 67% 46% 14% Quattor Sunoco Braskem More balanced and diversified supply of raw materials Liquid (2) Refinery propylene Gas (1) Competitive natural gas price vs. international reference prices Ethanol Propane Naphtha / Condensate USG reference to competitive prices ~70% of naphtha supplied by Petrobras with competitive price formula Natural Gas 30% direct imports from various international suppliers 100% Petrobras supply with competitive prices versus international prices Ethanol *Based on resin-production capacity. Sunoco buys propane directly(1) Ethane, Propane and HLR ** Considering Green Ethylene capacity(2) Naphtha and condensate *** Considering the Mexico Project 24
    • Lower leverage and longer average debt term Net Debt/ EBITDA (R$ million) * Including the perpetual bond issue in October and the call in -24% December 2010 of US$ 150 million in perpetual bonds. Average term 3.46x increases to 11.9 years 2.63x 3,505 762 2,781* 16% 501 14% 14% 13% 17% 13% 10% 2,155 1,946 Dec 09 Sep 10 2,743 1,889 2,281 1,747 1,683 1,375 3% 386 09/30/10 2010 2011 2012 2013 2014 2015/ 2017/ 2019 Cash 2016 2018 onwards Does not include transaction costs Invested in R$ Invested in US$ Foreign Foreign Entities 0% Entities 5% More balanced sourceDebt Profile Gov. Entities Bank 37% Gov. Entities of funds 26% 22% Bank 52% Capital Market 21% Capital Market 37% 25
    • Braskem: Reaffirmed post-acquisition ratings Upgrade Conditions: RATING + Maintenance of high liquidity (cash or equivalents - Baa3 BBB- - Investment Grade stand-by) above R$3 billion. Cash above R$3 billion May/09 since Dec/2008. Jan/09 + Ba1 BB+ stable - Jan&Jul/10 Capitalization of Braskem as pre-condition for acquisition. Shareholder movements; Ba2 BB Successful integration with capture of synergies and increase in cash generation (EBITDA increase R$ 3,1 Ba3 BB- bi to R$3.8 bi); Post-Acquisitions Decrease in Net Debt/EBITDA ratio expected to B1 B+ 2.5x. In first post-acquisition quarter we already reduced this ratio from 3.46x to 3.12x. In 2Q10 we reduced to 2.84x, and to 2,63x in 3Q10. 2009 2010 The acquisitions: Braskem Ratings (Global Scale) Strengthened strategic positioning; Ba1 / Stable Outlook Increased # of plants, sites and geographic diversification; Diversification of raw material mix; BB+ / Stable Outlook More disciplined and less volatile domestic market ; High governance standards; BB+ / Positive Outlook Petrobras participation.Source: Braskem 26
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 27
    • Outlook on the global petrochemical industry Ethylene: Operating rate 9M10000 ton Industry at 9M2010 20,000 94 91 Operating rates increased from 2Q10 89 90 86 83 86 supported by better demand 15,000 84 82 81 79 78 80 Competitive cost base allows the US 77 10,000 to operate at higher rates than other 70 regions 5,000 60 Braskem continuously improving its operations reached 91% in 3Q10 0 50 Europe N. America Asia M. East World Braskem Global Scenario Capacity 3Q Operating rate 3Q10 (%) Operating rate 2Q10 (%) New capacity additions can lead to Ethylene: Supply and Demand Balance the closing down of non competitive000 ton assets on a permanent basis,200,000 88.4 90.5 especially in Europe and US 87.0150,000 83.8 83.1 Global economic outlook volatility 80.4 versus petrochemicals demand100,000 Lower operating rates indicate 2010 50,000 as the trough of the cycle 0 Expectation of improvement in the 2009 2010e 2011e 2012e 2013e 2014e industry profitability as of 2H11 Capacity Demand Operating Rate 2010e (%)Source: CMAI , Parpinelli Tecnon 28
    • Leadership in Brazil – strong potential growth Industrial Assets Brazilian’s thermoplastic demand – Million tons Potential Growth 4,9 4,2 4,3 4,0 3,7 2006 2007 2008 2009 2010E Per-capita consumption of PE, PP and PVC (kg/person) 63Market Share 57 Others9M10 6% 41 22,2 28 Imports Braskem 25% 69% Brazil USA Europe Japan China 29
    • Agenda Braskem A global player Acquisitions: opportunities and challenges Project pipeline: growth with value creation Braskem consolidated The petrochemical industry Final considerations 30
    • PrioritiesExisting assets Maintaining growth in domestic sales in relation to 2009, aligned with the better performance of the Brazilian market (GDP and demand growth should exceed 7% and 12%, respectively) Strengthening the relationship with our Clients, adding value and differentiation to our products and services 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 employedFinancial To balance the investments and dividends equation Leverage reduction to achieve investment grade credit rating Maintaining liquidity and financial disciplineGrowth 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 raw material 31
    • Why Braskem?Pr/share BRKM5 Performance 40 Consolidated (R$ billion) 3Q10 Multiple 35 EBITDA LTM 3.8 30 Synergies to 2012 4.2 25 Market Capitalization 16.1 18.8 20 + EV 26.0 29.7 15 EV/EBITDA 6.9x 7.8x** 10 Price per share 20.2* 28.2 5 0 Proj. NPV to 2012 > R$1.12 bi Value added by projects to 1.40 share price R$ USD *BRKM5 as of 12/21/10 ** Peer Multiple Dec/2010 Largest thermoplastic resin producer in the Americas Source: Bloomberg. Leader of important projects in Latin America with competitive raw materials Emerging consumer market with potential per-capita growth Huge potential for value creation as additional driver EBITDA increase Above-peer profitability Access to one of the world’s largest consumer markets EV/EBITDA multiple below following the U.S. acquisition peers’ multiple (7-9x) Successful trajectory of organic growth and acquisitions Shareholders hold long-term view with strategic synergies for growth and value creation Leader in green chemicals 32
    • Meeting with Investors
    • Appendix
    • Leader in the Americas and a top 8 global player in resins capacity 1stCapacity in the Americas (kton/y) 6,460 510 5,307 ( 4,827 4,256 4th 1,230 627 2,915 3,595 3,082 1,731 510 2,340 2,311 4,077 1,090 1,210 1,915 4,200 PVC 3,035 822 875 950 2,525 2,340 2,311 PP 1,995 1,050 1,040 950 PE Braskem Exxon Dow Lyondell Braskem Formosa Shintech Chevron Quattor Sunoco post Mobil Basell Philips transactions 10,914World Capacity (kton/y) 9,311 8,668 8th 7,749 7,284 7,109 6,541 6,460 4,681 4,564 12th 4,303 4,079 3,595 Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Braskem Total IPIC Reliance PetroChina Braskem Basell Mobil post transactions operations 35
    • Global Ethylene supply/demand Global ethylene supply / demand (Mton/y) 151 154 143 146 146 140 130 133 133 125 127 121 114 111 111 115 Supply Demand 2007 2008 2009 2010 2011 2012 2013 2014 - Not considering additional delays and shutdownsSource: CMAI, June 2010 - Considering world GDP growth of 2.5% – 3.0% in 2011 36
    • Global Resins supply/demand Global Resins (PE, PP, PVC) Supply (Mton/y) 215 219 205 209 198 173 182 168 51 52 47 49 51 44 45 41 PVC 64 64 66 68 55 60 PP 49 51 PE 78 79 83 90 92 93 97 99 2007 2008 2009 2010 2011 2012 2013 2014 Global Resins (PE, PP, PVC) Demand (Mton/y) 181 191 161 172 149 152 141 143 41 43 37 39 35 34 PVC 32 32 60 53 57 PP 44 47 50 43 44 PE 69 71 75 79 83 88 66 67 2007 2008 2009 2010 2011 2012 2013 2014Source: CMAI, June 2010 * Compounded Annual Growth Rate 37
    • Resins demand by region 2010 Resins (PE, PP, PVC) Demand by region Africa 3% China Europe 27% 18% North America 17% Asia ex-China 23% South America 6% Middle East 6%The Brazilian demand for resins represents 3% of global demandSource: CMAI, June 2010 38
    • Investments in 2010 amount to R$1.6 bi Investments R$ million 1,617 56 Braskem America 35 Venezuela 360 Quattor 10 Quantiq 72 Mexico 1,011 12 254 Green PE 191 47 192 Equipment Replacement 52 Capacity Increse/PVC Alagoas 311 317 Maintenance 116 18 61 Productivity 175 New Projects 31 208 Others 66 Industrial Assets 9M10 2010e * 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.Source: Braskem 39
    • Increase in Quattor capacity operating rate positivelyimpacted 2Q10 Braskem consolidated operating rate % Ethylene Polyethylene Polypropylene PVC 100% 91%* 89% 91% 90% 97% 83%* 83% 88% 86% 81% 87% 3Q09* 2Q10 3Q10 3Q09* 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 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 ktonSource: Braskem 40
    • World indicative ethylene cash costsSource: CMAI 41
    • Revenues breakdown – 3Q10 Net Revenue By Product (1) 3Q10 Others 7% Fuel 3% ETBE 2% Cumene 2% BTX* 7% Butadiene 5% Resins 66% Propylene 3% Ethylene 4% (1) Does not include naphta / condensate/ crude oil processing and distribuitor sales *Benzene, Toluene, Paraxylene and OthoxyleneSource: Braskem 42
    • COGS breakdown – 3Q10 COGS 3Q10 Deprec / Amort Others 1% 7% Services 2% Labor 3% Other Variable Costs 8% Natural Gas 2% Electric Energy Naphtha 54% 5% Gas as feedstock 18% 1 Does not include naphtha / condensate / crude oil processing and Quantiq costsSource: Braskem 43
    • Exports Destination – 3Q10 Exports Destination 3Q10 Others 1% Asia 7% North America 28% Europe 21% Central America 9% South America 34% The Export Market represents 29% of Company’s Net Revenue.Source: Braskem 44
    • EBITDA Trends 2Q10 Pro Forma vs. 3Q10Higher sales volume was impacted by lower margins, due to R$ millionthe narrower spreads in the international market (a trendthat reversed only in August) and to the BRL appreciation FX impact on costs 95 FX impact on (160) revenues 301 1,042 1,030 ( 228) ( 65 ) ( 10 ) ( 11) EBITDA Volume Contribution FX Fixed Costs Others EBITDA 2Q10 Margin SG&A 3Q10Source: Braskem 45
    • Debt Profile Gross Debt by Category Gross Debt by Index Foreign Gov. Entities Outros CDI 1% 1% 11% Brazilian Gov. TJLP-6 PRE Entities 20% 6% 27% Capital Market 33% Trade Finance 22% Working Capital Operações 8% No Trade Finance Estruturadas 40% 31% 62%Source: Braskem 46
    • Outstanding Bonds & Outstanding Ratings Coupon Yield * Outstanding Bonds Maturity (% p.a.) (% 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 5.9 US$450 MM Perpetual 7.375 7.3 * As of November, 8th Corporate Credit Rating – Global Scale Agency Rating Outlook Reviewed in Fitch Ratings BB+ Stable 03/02/2009 S&P BB+ Stable 05/28/2009 Moody’s Ba1 Stable 05/21/2009 47Source: Braskem / Bloomberg
    • Covenants Net Debt / Ebitda (x) US$ R$ 2.75 2.63 Sep 10 Sep 10 Facility Amount* Jun 10 Currency Type Senior Notes R$ 500 MM R$ 500 MM R$ Issuance Nippon Export and US$80 MM US$49 MM US$ Maintenance Investment Insurance EPP (Export Pre- US$725 MM US$625 MM US$ Maintenance Payment) *The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / Ebitda ratio. 48Source: Braskem