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Acquisition of Dow
Polypropylene Business

     Carlos Fadigas
    Luiz de Mendonça
      Marcelo Lyra

       July 2011
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.


The forward-looking statements in this presentation are valid only on the date they are
made (March 31, 2011) 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
Transaction overview

 On July 27, Braskem acquired Dow’s Polypropylene (PP) business, increasing
  its PP capacity by 1,050 kty

 Upon approval of antitrust authorities, Braskem will pay US$323 million for
  the business

 Dow PP business: - Spheripol and Unipol technologies
    – North America: 50% increase in our capacity in the region
        • 2 plants in Texas: Freeport (320 kty) and Seadrift (185 kty)
    – Europe:
        • 2 plants in Germany: Wesseling (225 kty) and Schkopau (320 kty)


 Rational behind the acquisition
    – Polypropylene resins are one of the fastest-growing categories of thermoplastic
       resins in the world
    – U.S. is one of the largests global consumers of PP
    – Fragmented market in US - Potential of additional consolidation
                                                                                        3
Benefits and strategic drivers

 Tied as the # 1 player in the US market

 Expansion of global industrial footprint

 Geographical diversification
                                                                16% Capacity
                                                                  Increase

                                                                               1.050      7,480
 Complementary product portfolio                                6,430                               PP acquisition
                                                     2.885                     2.885       1.050
   – Strong focus on higher margin co-polymers                                                       PP
                                                                                                     PE               P
                                                                   2.885                   2.885
 Access to propylene pipeline grid in US            3.035                     3.035                 PVC              P




                                                         Kty
                                                                                                                      P
                                                         510                    510
 Value creation through potential synergies                       3.035                   3.035                      P

                                                   Brk                     Brk + D
   with current business                                           510                     510


                                                               Braskem
                                                                 Brk
                                                                                        Braskem
                                                                                        Brk + D
 Enhanced presence in the European market                                                after
                                                                                       acquisition
   – Proximity with new clients

   – Support to global leadership in biopolymers

                                                                                                                 4
Overview of Braskem Synergies

                       Components of Synergies


                                                                                            Braskem should
                                                                                             enjoy substantial
                                                                                             amount of
                                                                                             annual run-rate
                                                                                             synergies


                                      NPV of synergies
                                                                                            Synergies
                                    expected to be around
                                          $140MM                                             incorporate
                                                                                             business
                                                                                             leaders’
   Portfolio      Industrial   Procurement     Logistics / Supply   1-Time Costs   TOTAL     expectations
  Optimization                                       Chain




   Portfolio        Quality &   Raw material       Product           IT, closing
  optimization      reliability optimization     wheel in NA          costs and
  and product    improvements                      & railcar         integration
  mix savings     at US assets                   optimization          costs *
Leader in the US PP market




                                  1st
  U S market (kton/y)
  PP Capacity in the




                                  1,425       1,422                       4th
                                                         1,230   1,180
                                                                          920       863      815

                                                                                                      447




                                 Braskem      Lyondell   Exxon   Total   Braskem   Formosa   Ineos   Conoco
                                   Post        Basell    Mobil                      Group            Phillips
                                Transaction              Corp.




Source: CMAI, Company reports                                                                                   6
Dow PP business acquisition does not change
   Capital Structure and Leverage
   Strong liquidity with cash and cash equivalents of approximately R$3 billion (US$2 bi)
   Capital structure practically unchanged after acquisition

                                                                                            After PP assets
                        (In R$ million)                    Braskem 1Q11
                                                                                              acquisition

                  Cash disbursement                                                                  497**

                  Cash & Cash Equiv.*                              2,890                            2,393

                  Gross Debt                                      12,537                           12,537

                  Net Debt                                         9,647                           10,144

                  EBITDA (LTM)                                     4,064                          4,154 ***

                  Net Debt / EBITDA                                2.37x                            2.44x

                                                                               *** Includes US$ 51 million in 2010
                   * Not considering the standby of   ** Exchange rate: 1.54   EBITDA for the acquired business at an
Source: Braskem    $350 million                                                exchange rate of 1.76                    7
2020 Vision




Shareholder commitment                                                  Technological autonomy
                                        International expansion
                                          in Attractive markets

        Financial Solidity                                            Geopolitical alliances


                           Grow through                    Improve core
                         cultural initiative           business performance

                                                                                                 8
Acquisition of Dow
Polypropylene Business

     Carlos Fadigas
    Luiz de Mendonça
    Marcela Drehmer

       July 2011

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Apres 2707 eng

  • 1. Acquisition of Dow Polypropylene Business Carlos Fadigas Luiz de Mendonça Marcelo Lyra July 2011
  • 2. 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. The forward-looking statements in this presentation are valid only on the date they are made (March 31, 2011) 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. Transaction overview  On July 27, Braskem acquired Dow’s Polypropylene (PP) business, increasing its PP capacity by 1,050 kty  Upon approval of antitrust authorities, Braskem will pay US$323 million for the business  Dow PP business: - Spheripol and Unipol technologies – North America: 50% increase in our capacity in the region • 2 plants in Texas: Freeport (320 kty) and Seadrift (185 kty) – Europe: • 2 plants in Germany: Wesseling (225 kty) and Schkopau (320 kty)  Rational behind the acquisition – Polypropylene resins are one of the fastest-growing categories of thermoplastic resins in the world – U.S. is one of the largests global consumers of PP – Fragmented market in US - Potential of additional consolidation 3
  • 4. Benefits and strategic drivers  Tied as the # 1 player in the US market  Expansion of global industrial footprint  Geographical diversification 16% Capacity Increase 1.050 7,480  Complementary product portfolio 6,430 PP acquisition 2.885 2.885 1.050 – Strong focus on higher margin co-polymers PP PE P 2.885 2.885  Access to propylene pipeline grid in US 3.035 3.035 PVC P Kty P 510 510  Value creation through potential synergies 3.035 3.035 P Brk Brk + D with current business 510 510 Braskem Brk Braskem Brk + D  Enhanced presence in the European market after acquisition – Proximity with new clients – Support to global leadership in biopolymers 4
  • 5. Overview of Braskem Synergies Components of Synergies  Braskem should enjoy substantial amount of annual run-rate synergies NPV of synergies  Synergies expected to be around $140MM incorporate business leaders’ Portfolio Industrial Procurement Logistics / Supply 1-Time Costs TOTAL expectations Optimization Chain Portfolio Quality & Raw material Product IT, closing optimization reliability optimization wheel in NA costs and and product improvements & railcar integration mix savings at US assets optimization costs *
  • 6. Leader in the US PP market 1st U S market (kton/y) PP Capacity in the 1,425 1,422 4th 1,230 1,180 920 863 815 447 Braskem Lyondell Exxon Total Braskem Formosa Ineos Conoco Post Basell Mobil Group Phillips Transaction Corp. Source: CMAI, Company reports 6
  • 7. Dow PP business acquisition does not change Capital Structure and Leverage  Strong liquidity with cash and cash equivalents of approximately R$3 billion (US$2 bi)  Capital structure practically unchanged after acquisition After PP assets (In R$ million) Braskem 1Q11 acquisition Cash disbursement 497** Cash & Cash Equiv.* 2,890 2,393 Gross Debt 12,537 12,537 Net Debt 9,647 10,144 EBITDA (LTM) 4,064 4,154 *** Net Debt / EBITDA 2.37x 2.44x *** Includes US$ 51 million in 2010 * Not considering the standby of ** Exchange rate: 1.54 EBITDA for the acquired business at an Source: Braskem $350 million exchange rate of 1.76 7
  • 8. 2020 Vision Shareholder commitment Technological autonomy International expansion in Attractive markets Financial Solidity Geopolitical alliances Grow through Improve core cultural initiative business performance 8
  • 9. Acquisition of Dow Polypropylene Business Carlos Fadigas Luiz de Mendonça Marcela Drehmer July 2011