This document contains forward-looking statements that do not represent historical fact but reflect Braskem's management's beliefs and expectations. It summarizes Braskem's strategic direction to become a leader in the Americas and among the top 5 global petrochemical companies. It outlines the acquisition of Quattor, which will make Braskem the largest resin producer in the Americas and one of the top 10 globally. It discusses how the transaction strengthens Braskem's feedstock supply, scale, geographic diversification, and production chain integration.
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 by 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 in this presentation are valid only on the date
they are made (September 30, 2009) 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.
2
3. Agenda
Strategic direction
Quattor acquisition
Braskem post transaction
Key differentiators
The petrochemical industry
4. Strategic direction
Vision 2020 Braskem
Leader in the Americas, rank
among the 5 largest
petrochemical companies
worldwide measures by EV*
and to be positioned as the
preferred partner for global
alliances
Source: Braskem * Enterprise Value 4
5. Strategic drivers
Quattor acquisition strongly aligned to
the strategic drivers of the Company
Feedstock and energy
availability at
competitive costs
Defense of business in
Business differentiation
Latin America
International expansion Diversification of
in attractive markets products and business
Source: Braskem 5
6. Agenda
Strategic direction
Quattor acquisition
Braskem post transaction
Key differentiators
The petrochemical industry
7. Braskem overview
Key Financials 2009 LTM*:
Net Revenue R$ 15.3 billion Ethylene and resins capacity (kton/y)
EBITDA R$ 2.4 billion 6,127
Net Result R$ (328) million 510
* Last 12 months
1,090
Profile:
PVC
1,995
17 petrochemical plants with 1st and 2nd PP
generations integrated: states of BA, RS,
AL, SP (non integrated) PE
Ethylene
Listed in 3 stock exchanges:
BM&FBovespa, NYSE and Latibex 2,532
Source: Braskem 7
8. Quattor overview
Key Financials 2009 LTM*:
Net Revenue R$ 4.1 billion
Ethylene and resins capacity (kton/y)
EBITDA R$ 462 million
3,155
Net Result R$ (256) million
* Last 12 months
875
Profile:
PP
1,040 PE
9 petrochemical plants with 1st and 2nd
generations partially integrated: states of Ethylene
SP, RJ
Private company
1,240
Source: Braskem / Company estimates / Quattor 8
9. Geographic Complementarities
Complementation and
geographic diversification
Country region with the highest
availability of feedstock
Quattor assets are located in
Maceió
the SE region;
Marechal Deodoro
The southeast region has the
Camaçari largest thermoplastic resins
domestic consumption;
The privileged location of
Quattor assets represents low
logistics costs on the transport
Mauá Duque de Caxias of products to the final resin
Paulínia
consumers.
Triunfo
Industrial Footprint
Greenfields
10. Benefits and strategic drivers
Creation of a world scale player
Diversification of feedstock supply
Scale increase and geographic complementarities
Strengthening of the production chain – petrochemicals and plastics
Balanced capital structure
Value creation for all shareholders
Consolidation of Odebrecht and Petrobras shares in their activities in the
petrochemical sector, strengthening Braskem and the Brazilian production
chain to compete in the international market and ensuring the basis for
global growth, consolidating the leadership in the Americas
10
11. Transaction stages (1/2)
1. Creation of BRK Investimentos Petroquímicos SA (BRK) holding Braskem’s common
shares from Odebrecht (ODB) and Petroquisa (PTB), followed by a capital increase of
R$ 3,5 billion, R$ 1 billion from ODB and R$ 2.5 billion from PTB
ODB PTB Aportes ODB PTB
ODB/PTB
66,8% 33,2% 53.8% 46.2%
BRK BRK
2. Braskem capital increase through Private Offer between R$ 4.5 billion and R$ 5 billion,
with a minimum subscription of R$ 3.5 billion assured by BRK. The Offer share price
will be R$ 14.40 per share
3. Braskem acquires Unipar 60% stake of Quattor Participações for R$ 647.3 million in
addition to suceed Unipar in a liability with BNDESPAR
11
12. Transaction stages (2/2)
4. Braskem merges Quattor shares, consolidating Petrobras/Petroquisa 40% interest in
Braskem:
Braskem
100%
Quattor
Participações
94,11% 65,98% 99,3%
QQuímica RioPol QPetroquímica
25,00% RioPol
5,89% 9,02%
permanecem com
BNDESPar
5. Braskem acquires 33.3% of Polibutenos and 100% of Unipar Comercial for R$ 52.7
million
These steps of the transaction are expected to be concluded in 120 days
12
13. Assets to be acquired
40.0%
Direct Subsidiaries
50.0% 33.3% 60.0% 100.0%
Participações
Divisão Qu
94.11% 65.98% 99.30%
Química Petroquímica
ímica
5.89% 9.02%
25.00% of RioPol
remains with
BNDESPar
Source: Quattor 13
14. Agenda
Strategic direction
Quattor acquisition
Braskem post transaction
Key differentiators
The petrochemical industry
15. Braskem post transaction
Key Financials (2009 LTM* ProForma):
Gross Revenue R$ 25.8 billion Resins capacity (kton/y)
Net Revenue R$ 19.4 billion
5,510
EBITDA R$ 2.9 billion
Total Assets R$ 33.5 billion 510
*LTM: oct/08 to sep/09
1,965
PVC
Profile:
PP
26 petrochemical plants with 1st and 2nd
generations integration: States of BA, RS, PE
AL, SP, RJ
Listed in 3 stock exchanges: 3,035
BM&FBovespa, NYSE and Latibex
Source: Braskem / Company estimates 15
16. Assets location overview
PVC
Chlorine - Soda
Naphtha cracker
PE
PVC
26 Plants in 5 states Chlorine – Soda
- 17 Braskem plants PP
- 9 Quattor plants
AL
Gas (ethane and
propane) cracker
BA PE
PP
QUATTOR ASSETS
PROXIMITY OF THE
CONSUMER MARKET Naphtha and LRH
cracker
PE
RJ PP
SP PVC
Naphtha cracker
Green Ethylene
PE
RS
PP
16
17. Quattor acquisition places Braskem as #1
resins producer in the Americas...
Production capacity of resins in the Americas, kton/y
2009 basis
1st
5,510
5,307
4,827
510
1,230
4,256 4th
627
3,595
1,965
3,082
1,731 510
2,340 2,311
1,090 1,210 1,915
4,077
4,200
PVC
3,035 822 875
2,525 2,340 2,311 PP
1,995
1,050 1,040 PE
Braskem Exxon Dow Lyondell Braskem Formosa Shintech Chevron Quattor
post Mobil Basell Philips
transaction
Source: Braskem / CMAI / Barclays / Parpinelli Tecnon 17
18. ... and in the global ranking, one of the
Top 10 in resins
Production capacity of resins (PE, PP, PVC) worldwide, kton/y
2009 basis
10,914
9,311
8,668
7,749 7,284 7,109
6,541 12th
4,681 4,564 4,303 4,079
3,595 19th
1,915
Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Total IPIC Reliance PetroChina Braskem Quattor
Basell Mobil
10,914
9,311
8,668
7,749 7,284 7,109
8th Braskem
6,541
5,510
post
transaction
Lyondell Exxon SINOPEC Dow Formosa SABIC Ineos Braskem
Basell Mobil post
transaction
Source: Braskem / CMAI / Barclays / Parpinelli Tecnon 18
19. Diversity and competitiveness of
feedstock to compete globally
Feedstock profile (2009*) Refinery Propylene
USGC international reference with competitive
prices
8% 11% Petrobras as main supplier
37% 13%
Naphtha/Condensate
17% 72% of Petrobras naphtha supplied at
92% competitive pricing formula
76%
46% 28% of purchases via imports
Gas
100% of Petrobras gas supplied with
Quattor Braskem Braskem competitive prices in relation to international
post transaction references
Liquid (2) Propylene Gas (1)
(1) Ethane, Propane and LRH
(2) Includes naphtha and condensate Ethanol
Matrix with a greater balance and diversification
Competitive gas pricing in relation to the international
reference
19
20. Concerns with Corporate Governance
Braskem as a public company - Odebrecht as the controlling shareholder of the
company
Operational issues to be addressed by Braskem Executive Officers
Sharing of strategic decisions (Board consensus), such as:
Assets sales, acquisitions, investments etc
Professional management - CEO chosen by Odebrecht and executive officers chosen by
CEO, with Petrobras nominating 2 out of 8
Preferred partner for investments in the industry, exclusive choice in Latin America –
Peru, COMPERJ, Suape, etc.
Board of Directors with 11 members, out of which 1 is not nominated by the
controlling shareholders
20
21. Capital structure post transaction
High liquidity, with availability around R$9 billion
Capital structure with leverage (net debt/EBITDA) around 3x
Opportunity to extend maturities and reduce the cost of debt through renegotiation
Estimated Capital Estimated Capital
ProForma
Increase R$4.5bi - Increase R$5bi -
Sep 09
Acquisitions Acquisitions
Availabilities 4,274 8,074 8,574
Gross Debt 17,470 17,470 17,470
Net Debt 13,197 9,397 8,897
Net Debt / EBITDA 4.55x 3.24x 3.07x
Shareholders’
7,270 11,770 12,270
equity
21
22. Braskem debt profile post transaction
Short term cash balance of Braskem post transaction, without any capital injection, is
enough to amortize debts maturing in 2009 and 2010
Consolidated Debt Profile (R$ million) Consolidated Debt
No injection R$4.5 bi injection
US$ R$
In R$ million Cash 4,274 8,774 47%
53%
8,774
Gross Debt 17,470 17,470
Net Debt 13,197 8,697
R$4.5 bi
R$3.5bi
injection
injection
Average Term: 7.1 years
3,200
2,518
4,274 > 3,828
2,288
1,556
1,896 1,932
1,264
1,086 1,416
728
1,144 1,140
620 934 900
1,644 516 617
1,204 1,254 1,202 601 123
752 796 156
447 494
333 69
Cash and 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Perp.
Equivalents
Braskem Debt (sep/09) Quattor Debt (sep/09)*
* Braskem Estimates 22
23. Partnership in new projects
700 kton/y PTA Suape: integration of the
450 kton/y PET petrochemical Complex
All corporate 240 kton/y textiles polymers businesses into the Company
and contractual assets
instruments
shall be signed Comperj: production and
860 kton/y PE
within 120 marketing of resins and basic
850 kton/y PP
days. petrochemicals
500 kton/y PTA
600 kton/y PET
Maintaining financial solidity
700 kton/y PTX
608 kton/y Benzene
157 kton/y Butadiene
23
24. Growth combined with improved
competitiveness
• Green PE:
- 200 kton/y of green PE
- Ethylene made from 100% renewable raw material, with sugarcane ethanol used as feedstock
- Investments of R$ 488 million and startup expected for the end of 2010
- Financing package with BNDES approved in May/09
- 70% of the ethanol volume required on final contract negotiation
• Venezuela (JVs with Pequiven with equal ownership) – Under Review:
• Polipropileno del Sur (Propilsur)
- 450 kton/y of PP
- Startup in 2013 and investments estimated at US$1.2 billion
- Front end engineering design (FEED) at its final stage, EPC contract negotiation and financing structure
with the ECA´s and multilaterals in progress
• Polietilenos de America (Polimerica)
- 1.3 Mton of ethylene and 1.1 Mton/y of PE
- Integrated project using the natural gas available in Venezuela as feedstock
- Startup in 2014 and investments estimated at US$3.25 billion
- Technology license agreements signed for the PE plants and 79% of the PE Project Design Packages
(PDPs) concluded
Source: Braskem 24
25. Growth combined with improved
competitiveness
• Mexico:
• Project Ethylene XXI
- Partnership with the Mexican group IDESA for the acquisition of ethane from PEMEX to be
used as feedstock for an integrated petrochemical project
- 1 Mtons/y of ethylene and 1 Mtons/y of PE
- Investment initially estimated in up to US$ 2.5 billion over the course of 5 years, planned to be
financed by a project finance model with 70% debt and 30% equity
• PVC Alagoas:
- 210 kton/y of PVC capacity expansion in Alagoas, Brazil
- Investments around US$500 million and startup expected for the second half of 2012
• Peru:
- Braskem, Petrobras and PetroPerú concluded studies for the technical and economic pre-
feasibility phase of an integrated project to produce 600 kton to 1.000 kton/y using the natural
gas available in Peru as feedstock
Source: Braskem 25
26. Agenda
Strategic direction
Quattor acquisition
Braskem post transaction
Key differentiators
The petrochemical industry
27. Brazil: dynamic market with still
low per capita consumption
• PE, PP and PVC per capita consumption
(Kg per person)
76
68
Brazil: 57
5.2%
CAGR*
22.7
21.9
20.2
17.8 18.7 18.0
16.2 16.6 17.5
15.4 16.1
14.5
12.5 13.6
11.1
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 USA Europe Japan
PE PP PVC
27
* Compound annual growth rate 27
Source: CMAI
28. In Brazil, companies are exposed to a
dynamic market with resilient growth
• Domestic demand for resins (Kton/y)
5.4%
CAGR
3%
10%
4,172
9% 4,048
3,696
856 982
3,435 3,377
749
2,880 692
1,228 1,218
1,114
990
1,833 1,964 1,972
1,695
2001 2004 2005 2006 2007 2008
PE PP PVC
Source: Abiquim – domestic sales + imports Source: NAD - CMAI 28
29. Applied Innovation and technology to
strengthen value chain competitiveness
Structured resource base to support client
needs
Focus on product and
application
Over US$ 190 million in R&D assets development
– 18% of resin sales
> 170 researchers derive from
products developed
in the last three
8 pilot plants years
– Focus on clients’
> 240 patents filed end users
worldwide
Targeted initiatives for
breakthrough
Partnership with universities and R&D centers in technology
Brazil and abroad – Intelligent
packaging
– Renewables
29
29
Source: Braskem
30. Agenda
Strategic direction
Quattor acquisition
Braskem post transaction
Key differentiators
The petrochemical industry
31. Petrochemical Cycle
Good naphtha x resins spreads even with lower ethylene
utilization rate
Global ethylene supply-demand and operating rate (Mton/y, %)
Points of concern
143 146 148 • Uncertainty regarding the extent of the
140 global economic recovery
134 134
130 127
120 • Incentives to sustain supply buildup
111 112 115
91 – China: import substitution
– Middle East own agenda
87 • Stronger activity of capital investors in
86 the commodity market
84
83
83
Supply & Demand
Balance
Potential positive factors
2008 2009 2010 2011 2012 2013
• Frequent delays in new capacities
Supply Demand Utilization Rate CMAI - May/09
• Operational and logistics problems
Spread HDPE/Naphtha X Ethylene utilization rate (US$/ton, %) • Increased economic importance of
emerging countries with relevant
91 91
domestic consumption, as Brazil and
702 717
751 750 688 694
China
84
609 • Supply-demand geographical imbalance
638 562 626
77 528 leads to logistics barriers
79
77 77 • Opportunities from assets on sale
474
• Limited utilization rates helps to balance
Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 the market
Spread HDPE/Naphtha Utilization rate 3Q09 Estimated utilization rate Source: CMAI 31
32. 12 million tons of ethylene capacity lost
in USA and Europe
2009 expected utilization rate:
Kton
45,000 88%
82%
40,000 77%
35,000 67% • Lower global demand
30,000
25,000 growth and new
20,000
15,000 capacity additions
10,000
5,000 expected to come on
0
stream limiting the
North Europe Middle Asia
America East utilization rates of the
Nameplate Capacity Effective Production
actual players
New ethylene capacity additions globally (Mton):
• New capacity additions
12
10
could be delayed
8
6
4
Delayed
2
Go ahead
0
2009 2010 2011 2012 2013 Source: Parpinelli Tecnon / CMAI / SRI 32
33. Major ethylene capacity additions in 2009:
9.5 Mtons of nameplate capacity in Asia and Middle
East, of which 4.5 Mtons effectively operating
Effective capacity Nameplate
Country Company Startup in 2009 (Kton) Capacity (Kton)
Kuwait TKOC 1Q09 850 850
Saudi Arabia Petro-Rabigh 2Q09 975 1,300
Saudi Arabia Yansab 3Q09 867 1,300
Qatar RLOC 3Q09 325 1,300
China Fujian Ref & Chem 3Q09 400 800
China Secco 3Q09 150 300
Saudi Arabia SHARQ 4Q09 100 1,200
China Dushanzi PC 4Q09 417 1,000
Thailand PTT Polyethylene 4Q09 250 1,000
China Panjin Ethylene 4Q09 113 450
4,447 9,500
10,340
3,832
Total ethylene 5,773
5,130
capacity 888
2,475 1,240
additions (kton) 202 1,450
4,040 4,033 China
3,083
Asia ex-China
Middle East
Source: CMAI / updated in Oct 30th. 2009 2010 2011 33
35. Management’s main priorities
Implementation of the Quattor Transaction
Analysis of the Transaction by CADE
Continued strengthening of long-term relationship with Clients
Prioritizing financial health and liquidity
Construction of Green PE plant
Projects in Latin America: competitive feedstock
Selective acquisitions in North America
Financial strength and respect for minority shareholders
Opportunities for internationalization
35