2. Forward-looking Statements
This presentation contains forward-looking statements. Such statements are not
statements of historical facts, and reflect the beliefs and expectations of Braskem’s
management. The words “anticipates”, “wishes”, “expects”, “estimates”, “intends”,
“forecasts”, “plans”, “predicts”, “projects”, “targets” and similar words are intended
to identify these statements. Although Braskem believes that expectations and
assumptions reflected in the forward-looking statements are reasonable based on
information currently available to Braskem’s management, Braskem cannot guarantee
future results or events.
Forward-looking statements included in this presentation speak only as of the date they
are made (December 31, 2006), and the Company does not undertake any obligation to
update them in light of new information or future developments.
Braskem shall not be responsible for any transaction or investment decisions that are
taken based on information included in this presentation.
2
3. Highlights of the Period
Strong demand* growth in the domestic market
Resins demand growth of 315,000 tons in 2006
2006 x 2005 %
+12%
+9%
+8% +8%
PVC PE PP Resins
*Domestic sales + Imports
Source: Abiquim 3
4. Highlights of the period
Record Gross Revenues of approximately US$7 billion, a 8% growth over 2005;
Strengthening of Braskem’s leading position in the resins market (PE, PP and PVC);
Acquisition of Politeno’s control:
– Integration of operations completed;
– Volume of synergies initially identified confirmed: US$ 110 million in NPV;
– Portfolio of products and customers improved;
– Identification of new synergies underway
Inovation & Technology
– Launching of the 1st Brazilian resin using Nanotechnology (PP grade);
– 14 new patents registered in 2006;
– 20% of resins revenue from products developed in the last 3 years
Increased efficiency and productivity
– Conclusion of Braskem + one year ahead of schedule with overcoming results
– Successful implementation of Formula Braskem as planned;
4
5. Highlights of the period
Lengthening of the Company’s average debt maturity from 11 to 16 years;
Selection as part of the Bovespa’s Corporate Sustainability Index (ISE) for the second
consecutive year in a row;
International recognition in Corporate Governance:
– Highest corporate governance rating among Brazilian companies in a survey
conducted by GovernanceMetrics International (GMI);
Implementation of a Share Buyback Program as planned;
Launch of PP Paulinia’s plant cornerstone and construction start up
5
6. Highlights of the Period
Positive evolution of EBITDA and EBITDA margin
EBITDA R$ million EBITDA Margin %
530 +18%
417 461 +15% +14%
253 +9%
1Q06 2Q06 3Q06 4Q06 1Q06 2Q06 3Q06 4Q06
Source: Braskem 6
7. Braskem Figures – 4Q06
Significant EBITDA growth and improved profitability
Net Revenue R$ million EBITDA R$ million Net Income / Loss R$ million
461
530 78
3,277 461
2,974
+143
+15%
-9%
3Q06 4Q06
3Q06 4Q06 3Q06 4Q06 -65
Last 12
Exports US$ million EBITDA US$ million Net Debt / EBITDA
461 Months
396 396 247 2.96
212 2.72
+17% -8%
3Q06 4Q06 3Q06 4Q06 Sep Dec
06 06
%NR 26% 29%
Source: Braskem 7
8. EBITDA Evolution
Decreasing costs of raw material boosts 4Q06 EBITDA
R$ million
34
215
(97)
530
(75)
461 (7)
3Q06 Raw Price Volume Others FX Rate 4Q06
Materials
8
Source: Braskem
9. Main SG&A Variations – 4Q06 vs. 3Q06
R$ million
Exports 275
Volume 14% higher
9 5
12
16
215 18
3Q06 Service Accounting Export Distribution Other 4Q06
Expenses Standard Expenses Logistic Expenses
(Consulting Adequacy Expenses
and Legal)
9
Source: Braskem
10. Financial Result
4Q06 3Q06 Chg % (R$ million)
Net Financial Result
(A) (B) (A)/(B)
Net Financial Results (239) (330) -28%
Foreign Exchange Variation - FXV 35 (50) -
Monetary Variation - MV (55) (54) 2%
Financial Results Excluding FXV and MV (218) (227) -4%
(227) (218)
(25)
13
11
10
CPMF, IOF / Interests and SELIC Tax Hedge /
Working Vendor Provision Others
Capital
3Q06 4Q06
Source: Braskem 10
11. Debt Profile
Higher level of cash and cash equivalents coupled with a debt profile
compatible with the cash flow from operations
AMORTIZATION SCHEDULE TJLP CDI
12/31/2006 - (R$ million) 23% 26%
Pre
2%
Gross Debt: 6,295 Trade Finance
8%
Net Debt: 4,513
US$
41%
US$
49%
1,782
25%
Avg. maturity: 16 years
695
R$ 14%
12% 12%
1,131* 10% 9%
7%
859 6%
1.087 648 5% 748
US$ 565 755
451
362 343
431
December 31, 2006 2007 2008 2009 2010 2011/ 2013/ 2015/ 2017/ Perpetual
2012 2014 2016 2018
Cash and cash *Subordinated debentures fully subscribed by the controlling shareholder, with payment of interest and principal
equivalents in July 2007.
11
12. Investments
Over R$ 700 million invested in 2006
(R$ million)
Highlights:
719 • Competitiveness Programs:
Capacity Increases
93
199 Equipment
Healthy, Safety • Isoprene capacity expansion: + 9kt
153 and Environment • Polyethylene Debottlenecking: + 30 kt
54
Technology
Productivity
119
97
Information System This amount doesn’t include:
4 Quality and Others
Maintenance Shutdowns R$ 150 MM
Capitalized Interests R$ 83 MM
2006
Investments in Paulínia R$ 15 MM
Politeno Acquisition R$ 238 MM
Source: Braskem 12
13. Outlook for 2007
Global supply-demand balance for thermoplastic resins remains favorable;
High utilization capacity rates globally;
Sustained prices scenario for resins and other petrochemical products;
Average oil prices expected to be lower in 2007 compared to 2006;
Domestic demand for resins positively impacted by Brazilian GDP growing scenario;
Operating investments estimated at R$ 550 million;
Start-up of the PP project in Paulínia in 1Q08, with investments of R$ 80 MM in 2007;
Attractive perspectives of both projects – PP and Jose Complex - in Venezuela
confirmed, with investment case to be concluded by the end of 2007.
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