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Conference Call
4Q10 and 2010
 Investor Relations
São Paulo, March 18, 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 (December 31, 2010) 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
Highlights
                                                                                   EBITDA (R$ million)    EBITDA (US$ million)

         Braskem’s EBITDA was R$ 1.1 billion in 4Q10 with a 14.9 %                        +27%
                                                                                                                  +41%

         EBITDA margin                                                                           4,055                   2,308

         2010 EBITDA reached R$ 4.1 billion, a 27% growth over                    3,181
                                                                                                          1,638
         2009
                Quattor EBITDA increased 78% reaching R$1 billion
         Braskem’s domestic resin sales rose 11%
         2010 Net Income was R$ 1,9 billion                                       2009           2010     2009           2010


        Braskem is committed to its financial solidity:
                 Debt prepayment and long term bonds issue, lengthened the average debt term to 12.5 years
                 Net Debt/EBITDA* ratio fell from 3.59x (Dec/09 pro forma) to 2.43x in Dec/10
        The Administrative Council of Economic Defense (CADE), approved without restrictions the acquisition of Quattor
                 Synergies from the acquisition are expected to R$377 million in annual EBITDA for 2011
        Ethylene XXI Project – Mexico
                 Letters of interest for the finance of the project surpassed its financing needs
                 Strategic partnership with Lyondell Basell for the use of the technology at the polyethylene plants


*Last 12 Months EBITDA (LTM)                                                                                                     3
Domestic market performance

        Domestic Resins Performance – 4Q10 Vs. 3Q10                           Origin of Imports in 2010
                                                                              (PE, PP and PVC)
                   -5%                             Brazilian market
            -6%                                    Braskem’s Sales

                                                                                                Others
                                                                                                 14%
                                                                                       Europe
        Braskem’s Sales Profile – 2010                                                  10%              North America
                                                                                                             29%
                                                                                      Asia
                              OTHERS                                                  10%
          AGRIBUSINESS
                                    10%                                      Mexico      Colombia        Argentina
        INDUSTRIAL             4%                                  FOOD       1%           15%
                                                        29%
                                                                                                            21%
                          4%                                     PACKAGING
  AUTOMOTIVE             6%


         RETAIL          7%


                              9%
                                                                                 Americas account for 67% of imports
        HYGIENE AND                                   18%
         CLEANING                      13%                    CONSTRUCTION       Imports continued to represent 26%
                                                                              of the domestic market
                              CONSUMER
                                GOODS



Source: Tendências Consultoria, Abiquim, Braskem                                                                         4
EBITDA performance: 4Q10 vs. 3Q10

                                                                                                                                R$ million
      Although sales volume was impacted by lower seasonal                                  FX impact
                                                                                             on costs       127
   demand, contribution margin was offset by the higher
   prices in Brazilian real. FX impacted by the appreciation in
   Brazilian real.                                                                         (191)
                                                                                                        FX impact on
                                                                                                        revenues



                                                     345


                                                                         ( 64)                                                 1,074
                     1,033
                                                                                             ( 75 )                    ( 32)


                                     ( 134 )




                    EBITDA          Volume       Contribution             FX             Fixed Costs               Others      EBITDA
                     3Q10                          Margin                                   SG&A                                4Q10

Source: Braskem                                                   *SG&A: R$29 million of non-recurring expenses in 4Q10                      5
EBITDA performance: 2010 vs. 2009

                                                                                                                     R$ million
      Contribution margin was positive impacted by the
   higher sales volume and the improvement in resin-
   naphtha spread. FX impacted by the appreciation in
   Brazilian real.                                                                     FX impact
                                                                                        on costs    2,089

                                                                                                   FX impact
                                             1,979                                  (3,140)        on revenues




                                                              ( 1,051 )
                                                                                                                   4,055
                                523                                                ( 441)               (135)
                  3,181




                  EBITDA       Volume     Contribution           FX             Fixed Costs        Non recurring   EBITDA
                   2009                     Margin                                 SG&A             effect 2009     2010


Source: Braskem                                          *SG&A: R$244 million of non-recurring expenses in 2010                   6
Strong cash generation and competitive margins


                                                EBITDA (R$ million) and
                                                  EBITDA Margin (%)

                                                                         14.0%              14.6%
                  12.1%           14.1%            14.9%          40.0%
                                                                  20.0%                     4,055
                                                                  0.0%    3,181
                                   1,036            1,074         -20.0%
                                                                  -40.0%
                   786
                                                                  -60.0%
                                                                  -80.0%
                                                                  -100.0%
                                                                  -120.0%
                                                                  -140.0%
                  3Q09             3Q10             4Q10                   2009             2010




                                                              4Q10      3Q10      4Q09       Chg.     Chg.      2010       2009     Chg.
                    R$ Million
                                                               (A)       (B)       ( C)     (A)/(B) (A)/( C)     (D)        (E)    (D)/(E)
                    Net Financial Result                      (541)      183      (981)        -      -45%     (1,618)     266        -
                         Foreign Exchange Variation (FX)       106       638       166       -83%     -36%      405        2,782   -85%
                         Monetary Variation (MV)               (65)      (40)     (140)       63%     -54%      (355)      (511)   -31%
                    Net Financial Result                      (583)     (416)     (1,006)     40%     -42%     (1,668) (2,005)     -17%




Source: Braskem                Non-recurring Financial Expenses: approx. R$250 million in 4Q10 and R$464 million in 2010                     7
Leverage decrease and longer average debt term

                                                                                                                    Net Debt/EBITDA
                                                                                                                           (R$)


                                       Amortization Schedule(1)                                           Dec-09                           3.59x
                                           (million of R$)
                                            12/31/2010

                                                                                                                                                    -32%
                                                                                                           Sep-10                  2.64x

                                                                                                                                          -8%
          583*
                                                                                                20%       Dec-10                  2.43x
           393

                     13%               14%
                                                 13%
                               10%                                     11%                                          Net Debt/EBITDA
                                                                                    10%       2,594
 2,889              1,733             1,820                  8%                                                          (US$)
          2,496                                 1,694                 1,360
                              1,245                        1,073                  1,244
                                                                                                          Dec-09                            4.00x



         12/31/10    2011     2012    2013       2014       2015       2016/       2018/        2020                                                -36%
                                                                       2017        2019        onwards
                                                                                                          Sep-10                   2.76x
           Cash
                                                                   (1) Does not
                                                                              include transaction costs
            Invested in R$                                                                                                                -7%
            Invested in US$                                                 *US$350 million of Stand by
                                                                                                          Dec-10                  2.56x
         Issue of US$450 million in perpetual bonds, project finance
         prepayment and others financing operations lengthened the
         average debt term to 12.5 years


                                                                                                                                                           8
Synergies from Quattor acquisition totaling
    R$377 million in EBITDA for 2011
   2011 EBITDA*: R$377 million                                                                                  2012 EBITDA*: R$495 million

   R$ milhões
    R$ million                                                                        R$ million

                                                                                                                                           59


                                                                                                                      87
                                                        61


                                         82
                                                                                                                                                         495

                                                                        377
                                                                                                     350

                   234




                 Industrial            Logística
                                       Logistics    Suprimentos
                                                      Supply      EBITDA Synergies
                                                                  EBITDA Sinergias                 Industrial       Logistics             Supply   EBITDA Synergies




             Identification of new opportunities, efficient and rapid implementation of initiatives to
             capture synergies
                              Integrated planning for industrial units
                              Centralized maintenance plan assets strategy
                              Optimization of freight and gains in distribution and storage
                              Joint purchase of materials for industrial operations
Source: Braskem                                                                                                  * Annual and Recurring                               9
2011 Capex and Projects

Ethylene XXI (JV Braskem and IDESA) – Mexico
     Startup: January 2015
     PEMEX guarantees the supply of ethane
     Integrated project: 1 Mton/year ethylene and 1Mton/year PEs
                                                                                          Investments
     Investment: US$ 2.5 billion (project finance)                                         (R$ million)
     Mexico imports 68% of its total PE demand (1.8 Mton/year)
     Financial advisor: Sumitomo                                                             1,644
     Strategic partnership with Ineos and Lyondell Basell for the use of the technology
     at the PE plants                                                                         391
                                                                                                          Maintenance Shutdown
     More than US$5 billion in letters of interest for the project finance
                                                                                                          HSE
                                                                                              142
   2011 Focus
                                                                                               94
     Cracker technology definition                                                                        Productivity

     Structuring of the Project Finance                                                       407
                                                                                                          Capacity Increase / PVC Alagoas
     Conclusion of the engineering and construction agreement

                                                                                              243         Equipment Replacement

PVC Alagoas - Brazil                                                                           89
                                                                                                          Mexico
    Characteristics:                                                                          278
                                                                                                          Others
         Startup: May 2012
         Expansion of 200 kton/y in PVC capacity                                            2011e
         Investments of US$470 million and expected NPV ~US$450 million
         Approval of a financing line of up to R$525 million from BNDES and R$200
         million from BNB

                                                                                                                                       10
Outlook and Priorities

Petrochemical Market
    Political instability in Arab countries and oil price volatility
    Global petrochemical scenario continues to be marked by recovery, but oversupply is still
    expected for 2011. Mitigating factors:
        Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran
        Strong demand from emerging countries like China, India and Brazil
Braskem priorities
    Strengthening of the Brazilian petrochemical and plastics production chain
    To follow the domestic resins’ market growth: 9-10% in 2011
    Ensure capture of the identified synergies
    Adding value through the acquired assets
        Quattor: continue improvement in its operational efficiency
        Braskem America: return above capital employed
    Maintaining liquidity and financial discipline
    Growth Projects
        PVC Alagoas
        Implementing project in Mexico, which is based on competitive raw materials
        To define Comperj’s configuration with Petrobras
        Expand the use of renewable feedstock


                                                                                                           11
Conference Call
4Q10 and 2010
 Investor Relations
São Paulo, March 18, 2011

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Conference call presentation 4 q10 and 2010 results

  • 1. Conference Call 4Q10 and 2010 Investor Relations São Paulo, March 18, 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 (December 31, 2010) 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. Highlights EBITDA (R$ million) EBITDA (US$ million) Braskem’s EBITDA was R$ 1.1 billion in 4Q10 with a 14.9 % +27% +41% EBITDA margin 4,055 2,308 2010 EBITDA reached R$ 4.1 billion, a 27% growth over 3,181 1,638 2009 Quattor EBITDA increased 78% reaching R$1 billion Braskem’s domestic resin sales rose 11% 2010 Net Income was R$ 1,9 billion 2009 2010 2009 2010 Braskem is committed to its financial solidity: Debt prepayment and long term bonds issue, lengthened the average debt term to 12.5 years Net Debt/EBITDA* ratio fell from 3.59x (Dec/09 pro forma) to 2.43x in Dec/10 The Administrative Council of Economic Defense (CADE), approved without restrictions the acquisition of Quattor Synergies from the acquisition are expected to R$377 million in annual EBITDA for 2011 Ethylene XXI Project – Mexico Letters of interest for the finance of the project surpassed its financing needs Strategic partnership with Lyondell Basell for the use of the technology at the polyethylene plants *Last 12 Months EBITDA (LTM) 3
  • 4. Domestic market performance Domestic Resins Performance – 4Q10 Vs. 3Q10 Origin of Imports in 2010 (PE, PP and PVC) -5% Brazilian market -6% Braskem’s Sales Others 14% Europe Braskem’s Sales Profile – 2010 10% North America 29% Asia OTHERS 10% AGRIBUSINESS 10% Mexico Colombia Argentina INDUSTRIAL 4% FOOD 1% 15% 29% 21% 4% PACKAGING AUTOMOTIVE 6% RETAIL 7% 9% Americas account for 67% of imports HYGIENE AND 18% CLEANING 13% CONSTRUCTION Imports continued to represent 26% of the domestic market CONSUMER GOODS Source: Tendências Consultoria, Abiquim, Braskem 4
  • 5. EBITDA performance: 4Q10 vs. 3Q10 R$ million Although sales volume was impacted by lower seasonal FX impact on costs 127 demand, contribution margin was offset by the higher prices in Brazilian real. FX impacted by the appreciation in Brazilian real. (191) FX impact on revenues 345 ( 64) 1,074 1,033 ( 75 ) ( 32) ( 134 ) EBITDA Volume Contribution FX Fixed Costs Others EBITDA 3Q10 Margin SG&A 4Q10 Source: Braskem *SG&A: R$29 million of non-recurring expenses in 4Q10 5
  • 6. EBITDA performance: 2010 vs. 2009 R$ million Contribution margin was positive impacted by the higher sales volume and the improvement in resin- naphtha spread. FX impacted by the appreciation in Brazilian real. FX impact on costs 2,089 FX impact 1,979 (3,140) on revenues ( 1,051 ) 4,055 523 ( 441) (135) 3,181 EBITDA Volume Contribution FX Fixed Costs Non recurring EBITDA 2009 Margin SG&A effect 2009 2010 Source: Braskem *SG&A: R$244 million of non-recurring expenses in 2010 6
  • 7. Strong cash generation and competitive margins EBITDA (R$ million) and EBITDA Margin (%) 14.0% 14.6% 12.1% 14.1% 14.9% 40.0% 20.0% 4,055 0.0% 3,181 1,036 1,074 -20.0% -40.0% 786 -60.0% -80.0% -100.0% -120.0% -140.0% 3Q09 3Q10 4Q10 2009 2010 4Q10 3Q10 4Q09 Chg. Chg. 2010 2009 Chg. R$ Million (A) (B) ( C) (A)/(B) (A)/( C) (D) (E) (D)/(E) Net Financial Result (541) 183 (981) - -45% (1,618) 266 - Foreign Exchange Variation (FX) 106 638 166 -83% -36% 405 2,782 -85% Monetary Variation (MV) (65) (40) (140) 63% -54% (355) (511) -31% Net Financial Result (583) (416) (1,006) 40% -42% (1,668) (2,005) -17% Source: Braskem Non-recurring Financial Expenses: approx. R$250 million in 4Q10 and R$464 million in 2010 7
  • 8. Leverage decrease and longer average debt term Net Debt/EBITDA (R$) Amortization Schedule(1) Dec-09 3.59x (million of R$) 12/31/2010 -32% Sep-10 2.64x -8% 583* 20% Dec-10 2.43x 393 13% 14% 13% 10% 11% Net Debt/EBITDA 10% 2,594 2,889 1,733 1,820 8% (US$) 2,496 1,694 1,360 1,245 1,073 1,244 Dec-09 4.00x 12/31/10 2011 2012 2013 2014 2015 2016/ 2018/ 2020 -36% 2017 2019 onwards Sep-10 2.76x Cash (1) Does not include transaction costs Invested in R$ -7% Invested in US$ *US$350 million of Stand by Dec-10 2.56x Issue of US$450 million in perpetual bonds, project finance prepayment and others financing operations lengthened the average debt term to 12.5 years 8
  • 9. Synergies from Quattor acquisition totaling R$377 million in EBITDA for 2011 2011 EBITDA*: R$377 million 2012 EBITDA*: R$495 million R$ milhões R$ million R$ million 59 87 61 82 495 377 350 234 Industrial Logística Logistics Suprimentos Supply EBITDA Synergies EBITDA Sinergias Industrial Logistics Supply EBITDA Synergies Identification of new opportunities, efficient and rapid implementation of initiatives to capture synergies Integrated planning for industrial units Centralized maintenance plan assets strategy Optimization of freight and gains in distribution and storage Joint purchase of materials for industrial operations Source: Braskem * Annual and Recurring 9
  • 10. 2011 Capex and Projects Ethylene XXI (JV Braskem and IDESA) – Mexico Startup: January 2015 PEMEX guarantees the supply of ethane Integrated project: 1 Mton/year ethylene and 1Mton/year PEs Investments Investment: US$ 2.5 billion (project finance) (R$ million) Mexico imports 68% of its total PE demand (1.8 Mton/year) Financial advisor: Sumitomo 1,644 Strategic partnership with Ineos and Lyondell Basell for the use of the technology at the PE plants 391 Maintenance Shutdown More than US$5 billion in letters of interest for the project finance HSE 142 2011 Focus 94 Cracker technology definition Productivity Structuring of the Project Finance 407 Capacity Increase / PVC Alagoas Conclusion of the engineering and construction agreement 243 Equipment Replacement PVC Alagoas - Brazil 89 Mexico Characteristics: 278 Others Startup: May 2012 Expansion of 200 kton/y in PVC capacity 2011e Investments of US$470 million and expected NPV ~US$450 million Approval of a financing line of up to R$525 million from BNDES and R$200 million from BNB 10
  • 11. Outlook and Priorities Petrochemical Market Political instability in Arab countries and oil price volatility Global petrochemical scenario continues to be marked by recovery, but oversupply is still expected for 2011. Mitigating factors: Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran Strong demand from emerging countries like China, India and Brazil Braskem priorities Strengthening of the Brazilian petrochemical and plastics production chain To follow the domestic resins’ market growth: 9-10% in 2011 Ensure capture of the identified synergies Adding value through the acquired assets Quattor: continue improvement in its operational efficiency Braskem America: return above capital employed Maintaining liquidity and financial discipline Growth Projects PVC Alagoas Implementing project in Mexico, which is based on competitive raw materials To define Comperj’s configuration with Petrobras Expand the use of renewable feedstock 11
  • 12. Conference Call 4Q10 and 2010 Investor Relations São Paulo, March 18, 2011