This document discusses Braskem's international business unit and its Ethylene XXI project in Mexico. The international business unit aims to continuously evaluate opportunities for greenfield projects in countries with competitive feedstock. Its main targets are to support Braskem's long-term growth strategy through projects in new geographic areas with access to competitive feedstock and markets. The document then provides updates on Braskem's focus areas in Mexico, Venezuela, Peru, Bolivia, and Colombia. It concludes with details about the Ethylene XXI project in Mexico, which will produce polyethylene to meet the country's growing deficit.

1. International Business Unit
Roberto Ramos

2. Agenda
 International Business Unit
 Ethylene XXI Project
 Questions
2

3. Agenda
 International Business Unit
 Ethylene XXI Project
 Questions
3

4. UNINT
 Business
 To continuously evaluate the opportunities in countries
wherever the feedstock is available under competitive
conditions for the construction of Greenfield projects and
to support Braskem growing strategy by mergers and
acquisitions
4

5. UNINT
 Main Targets
 Support Braskem long term growth strategy, towards new
geographic frontiers
 Be present in new places wherever competitive feedstock
is available and/or it is possible privileged access to
relevant markets
 Focus on new projects in countries where Brazil’s
geopolitical influence allows the leverage of the
opportunities
 Identify and prepare people with entrepreneurial skills
and multicultural capability
 Ensure that new projects shall be aligned with Braskem’s
growing and sustainability strategies
5

6. Concentrations
 Mexico
 JV configuration: done (17 expatriates)
 Feedstock supply agreement: done
 Financial Advisor: done (Sumitomo)
 Basic Engineering: starting in Oct/2010
 Technology selection: virtually selected
 EPC Alliance Model: Under negotiation
 Financial Package: Preparation of information
6

7. Concentrations
 Venezuela
 Propilsur: PP alternative location  Under study
 Polimerica: Analyze alternatives in accessing new gas sources
 Peru
 Project Office: Already established
 Agenda with Petrobras and other suppliers of gas
 Bolivia
 Government: Possible revision of the Hydrocarbon Law to attract
new investments
 Colombia
 New opportunities under monitoring
7

8. Structure
Mexico
Roberto Bischoff
Projects
Support
Airton Beretta
CEO UNINT V.P. Projects
Support
Bernardo Gradin Roberto Ramos Carlos Brenner
Venezuela, Peru,
Bolivia
Sergio Thiesen
8

9. Operation Areas
 Expansion in Americas
 Ensure regional positioning
allowing the supply of the
regional market from
different production centers
with more integrated
approach and not restricted
to Brazilian exports
 Greenfield Projects
 Mexico – Peru – Bolivia – Venezuela
 Commercial Offices
 Chile – USA – Argentina – Colombia – Singapore – Netherlands
9

10. Main Regional Front
 Mexico: Ongoing Project: Second largest Latin American
plastics market and relevant feedstock producer.
 Peru: Boundary to Pacific coast with natural gas
availability. Appropriate place for an Integrated Project.
Relationship and feedstock solution under development.
 Venezuela: Largest Latin American feedstock reserves.
Natural player for petrochemical development. Economic,
social and politic environment demand continuously
evaluation.
 Bolivia: Regional proximity with Brazilian and
Argentinean markets, existing feedstock and production
infrastructure to be developed. Networking under
reconstruction.
10

11. Enlarge the Horizon
 Global Alliances and Partnership:
Continuously evaluate the new growth opportunities abroad
 Offices: Europe – Asia
 Projects: Africa, Europe, Asia
11

12. Internationalization with Peopleware
 Maturity
 Background
 Capability
 Partner Relationship
 Government Relationship
 Family
 Social and Cultural Integration
12

13. Sustainability
 Green Chemistry Technology
 Consolidate Brazilian development
 Projects abroad
 Up Dated Environmental
Criteria
 Minimized CO2 emissions
 Maximize recycling such as
process water
 Carry out all Greenfield
Projects
13

14. Agenda
 International Business Unit
 Ethylene XXI Project
 Questions
14

15. Polyethylene Market
 Currently deficit above 1.1 MM ton (2010)
 Estimated deficit in 2015 (project start-up): 1.7 MM ton
 Annual Growing rate foreseen: 4.5 % (Period: 2010-2025 )
Polyethylene Mexican Market
4.0
3.4 3.5
3.5 3.2 3.3
3.0 3.1
2.8 2.9
3.0 2.6 2.7
2.5
2.3
MMton/year
2.5 2.2
2.0
1.8 1.9 2.7
2.0 1.7 1.7 1.6 1.7 2.4 2.5 2.6
1.5 1.6 2.1 2.2 2.3
1.8 1.9 2.0
1.5 1.5 1.7
1.3 1.4
1.1 1.1
1.1 1.2 1.1 1.0
1.0 1.1 1.1
0.5 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
0.5 0.5 0.6 0.7 0.7 0.8 0.8
0.4 0.5
-
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Supply Deficit Demand
15

16. Mexican Converters Industry
 3,500 plastics converters
 84% small and micro companies
 More than 5 MM ton of plastics conversion, with 1.8 MM of Polyethylene
 Main application: Packaging (48% market)
Converters Profile
Big
Grandes
Medium
Médias 4%
12%
Pequenas
Small
24% Micros
60%
Total: 3,500 Converters
16

17. The Project
Ethane Ethane Cracker Ethylene
66,000 bpd 1,000 kTy
PEMEX Gas (Basic Petchem)
Gas
3 Polyethylene sites
1,000 kTy
Polyethylene
HDPE HDPE LDPE
PEMEX (E & P)
17

18. The Project
 Estimated investment: US$ 2.5 billion
 Project Finance target: 70 % debt / 30% equity
 Estimated Jobs during the construction: around 8,000
 Estimated Jobs during operation: around 3,000 ( direct and indirect )
 Localization: Coatzacoalcos (Veracruz State: Population: over 7 million)
Video link
18

19. Video
19

20. Schedule
 50 month from the PDP/FEED until to Start-Up
Phase 2010 2011 2012 2013 2014 2015
Preparation/Selection
PDP/FEED
Project Finance
FID Start-up
EPC
20

21. Competitiveness Factors
 Competitive feedstock
 State-of-the-art Ethylene and Polyethylene Technologies: focus on
reduction of CO2 emissions
 Labor cost among of the world’s most competitive (emphasis on
detailing engineering and construction)
 Alliance Model: reduction of total cost and assurance of the schedule
 Braskem team with large project and Ethylene and Polyethylene
operation background
 Excellent timing to project implantation
21

22. Ethylene XXI
 Current Situation
 US$ 138 MM of expenditures approved by shareholders until Dec/2011 –
financial assistance done until Sept/2010 / Braskem team work already
expatriated / technology: ongoing selection and acquisition and basic
project phase
 Market study already done and Polyethylene technologies defined
 Cracker Technology: under definition
 Alliance Model Agreement: under negotiations
 Braskem and Idesa team mobilized for project management and follow-up
 Starting of Basic Engineering: Oct/2010
 Project Finance: under study supported by BNDES/BANCOMEXT
22

23. Agenda
 International Business Unit
 Ethylene XXI Project
 Questions
23