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 in 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 included in this presentation are valid only
on the date on which they are made (March 31, 2008), and the Company does
not undertake 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
5. Braskem
# 1 Petrochemical Company in Latin America
• #1 Petrochemical Company in LATAM
Resins Production Capacity (kton)
3,500
3,440
1Q08 LTM FINANCIALS 3,000
2,000
1,515
1,000 692
• Net Revenue: US$ 10.2 bi 682
521 438
0
• EBITDA: US$ 1.6 Bi Braskem CPS* Dow Mexichem Solvay Ecopetrol
• #2 Ebitda Margin in the Americas (1Q08 LTM)
• Assets: US$ 12.1 bi
20% Braskem
• EV: US$ 8.0 bi 15%
15% Median
10%
5%
0%
Mexichem Unipar Nova DOW Westlake Ultrapar
Chemical 5
Source: Braskem/ CMAI *CPS: Companhia Petroquímica do Sudeste – 60% of Unipar and 40% of Petrobras 5
6. Strong and consistent growth via
Organic and Acquisitions Routes
• Revenues ► CAGR (’94-’07) – 16.3%
• Production capacity ► CAGR (’94-’07) – 12.3% US$ 9,712 MM
Politeno Copesul / IPQ
Acquisition Acquisition
Revenues Creation of PP DBN
PVC DBN
Braskem Ethylene DBN
Acquisitions Kton
5,551
Organic New PE
Plant 5,000
New PP
start-up
Plant
start-up 3,621 4,000
US$ 2,375 MM
3,045 3,145 3,225
3,000
US$ 1,357 MM 1,528 1,734 2,000
1,234
1,228
1,000
1994 1996 1998 2000 2002 2004 2005 2006 2007
6
Source: Braskem 6
7. Large Scale combined with superior
profitability
• # 3 Resins Producer in Americas - petrochemical “pure-play”(kton)
5,774
64
615 PVC
4,646 PP
3,440 PE
1,833 515
2,949
5,095 1,110 2,161
2,813 1,210 2,040 1,515
761 1,235
1,815 785
978 926 730
Dow LyondellBasell Braskem Formosa Ineos Shintech CPS
3rd 7th
• #2 Global Ebitda Margin - petrochemical “pure-play” (03-07 average)
Braskem
20% 18%
15% Median
10%
5%
0%
Mexichem Solvay Unipar Westlake Dow LG Ultrapar Nova
Chemical
7
Source:Braskem / CMAI March 2008 7
9. Braskem has most of its operations in the
leading economy in LATAM…
• Brazil: 1/3 of LATAM GDP • LATAM GDP (US$ billion) *
Brazil: 1,838
Others
México: 1,353
20% Argentina: 524
Brazil
33% Venezuela: 335
Colombia 6%
Venezuela 6% Colombia: 320
Argentina Others: 1,070
Mexico
10%
25%
Total: 5,440
(*) PPP – Purchasing Power Parity
9
Source: The Economist (Mar2008) 9
10. …and is exposed to a dynamic market
with strong growth rates…
(Kton)
• Domestic demand for resins • USA Demand for resins
0.7%
6.0%
CAGR
CAGR
10% 4,048
3,694 1% -3%
9% 25,904 25,020
3,435 3,377 856 24,749 24,306
2,880 749 23,276
692 5,907
1,228 6,081 5,563
1,114
990 6,287
6,350 6,142
1,964
1,833
1,695 12,826
12,318 12,601
2001 2004 2005 2006 2007 2001 2004 2005 2006 2007
PVC PP PE
Source: Abiquim – domestic sales + imports Source: NAD - CMAI 10
11. …with high level of consolidation
• High Demand Growth and Elasticity
01-07 CAGR Resin Growth 01-07 GDP Elasticity
Brazil: 6.0% Brazil: 2x
USA: 0.7%
• Number of Producers • 2 Top producers share
100% 100%
12 93%
12
9
42% 51%
4 30%
2 2
PP PE PVC PP PE PVC
BRAZIL USA 11
Source: Braskem / CMAI 11
12. Braskem has unmatched regional capacity
share in core products…
% Capacity Share
Region Company PE PP PVC
South America Braskem 46% 44% 32%
Unipar 23% 31% 0%
North America DOW 22% 4% 1%
NOVA 7% 0% 0%
Mexichem 0% 0% 4%
Westlake 6% 0% 8%
Northeast Asia LG Chemical 5% 2% 6%
Western Europe Solvay 0% 0% 15%
12
Source: Braskem / CMAI 12
14. …and Diversified customer basis in the
fast-growing Brazilian market
% of Resin Sales Growth by Sector in 2007
OTHERS INDUSTRIAL + 6%
AUTOMOTIVE FOOD PACKAGING
ELECTRIC AND 10%
ELECTRONIC 3% PLASTIC PACKAGING + 4%
INFRASTRUCTURE
2% 23%
4%
CLEANING
MATERIAL 5% CONSUMER GOODS + 5%
COSMETICS AND
PHARMACEUTICALS
3%
CONSTRUCTION + 5%
8% 17%
AGRICULTURE
CONSUMER FERTILIZERS + 5%
8% GOODS
RETAIL 17%
AUTOMOBILES + 15%
CIVIL CONSTRUCTION
HOME APPLIANCES +6%
14
Source: Braskem / IBGE
14
15. Innovation and Technology as key
value drivers
• Over US$ 160 million
in R&D assets
• 200 researchers
• 8 pilot plants
• 187 patents filed
• Focus on nanotechnology and intelligent
packaging
• 18% of resins sales derive from products
launched in the last three years
• Partnership with universities and R&D
centers in Brazil and abroad
15
Source: Braskem 15
16. Strong pricing power
Over 30% spread on international prices
PE: Braskem Premium over International % PP: Braskem Premium over International %
42%
34% 33%
27%
Spread PEAD Braskem / International US$ Spread PP Braskem / International US$
Average 27%
Average 30%
5
5
5
5
5
05
6
6
6
6
6
06
7
7
7
7
7
07
8
8
5
5
5
5
06
6
6
6
07
7
7
07
08
8
5
05
6
06
7
07
/0
/0
/0
l/0
/0
/0
/0
/0
l/0
/0
/0
/0
/0
l/0
/0
/0
/0
0
/0
/0
l/0
t/0
/0
/0
l/0
t/0
/0
/0
l/0
/0
v/
v/
v/
v/
v/
t/
v/
n/
n/
n/
n/
n
n
n
n
t
t
t
ar
ar
ar
ar
ai
ai
ai
ju
ju
ju
ar
ar
ar
ar
ai
ai
ai
se
se
se
ju
ju
ju
no
no
no
ja
ja
ja
ja
se
se
se
m
m
m
no
no
no
ja
ja
ja
ja
m
m
m
m
m
m
m
m
m
m
m
PVC: Braskem premium over international % Spreads on Asian prices %
52%
PE + 34%
42%
PP + 33%
Spread PVC Braskem / International US$
Average 42%
PVC + 42%
05
05
5
5
05
05
06
6
6
6
06
06
07
7
7
7
07
07
08
8
l/0
/0
l/0
/0
l/0
/0
/0
/0
/0
t/
t/
t/
n/
/
v/
n/
v/
n/
v/
n/
ai
ai
ai
ar
ar
ar
ar
ju
ju
ju
se
se
se
no
no
no
ja
ja
ja
ja
m
m
m
m
m
m
m
16
Source: CMAI / Braskem 16
18. Production growth with higher
operating reliability
Capacity Utilization %
ETHYLENE PE PP PVC
104%
96% 95% 96% 96% 96%
93% 94%
92%
91% 89% 86%
88%
1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08
Resin Production Kton
ALL-TIME RECORDS
2,827
2,786 Production in the last 12
700 702 704 months of 2,827 Kton
+1%
Quarterly PVC production
of 130 Kton in 1Q08
LTM LTM 1Q07 4Q07 1Q08
1Q07 1Q08
18
Source: Braskem
19. Leadership position in robust
domestic market: Demand +10%
Domestic Sales 1Q08 vs. 1Q07 % Resin Market Share 1Q08
+13%
+10%
Other
+7% 29%
+ 6% +5% 49%
22%
Imports
Resin Brazilian
PE PP PVC
Braskem market*
*Domestic sales + Imports
Source: Braskem / Abiquim 19
20. Evolution of EBITDA
Commercial strategy and reduction in fixed costs minimize
impacts from higher Naphtha prices
R$ million
FX impact
83 on costs
19
112
FX impact
(115)
188 on revenue
648 (263) (136) 583
(89)
(32)
4Q07 Fixed Raw 1Q08
Prices Other Volume Foreign
Costs/ Materials
Exchange
SG&A
Source: Braskem 20
21. Key Financial Figures
Change % Change %
R$ million 1Q08 (A) 4Q07 (B) 1Q07*(C) (A)/(B) (A)/(C)
Sales 4,410 4,809 4,424 (8) (0)
EBITDA 583 648 853 (10) (32)
Margin 13.2% 13.5% 19.3% -0.3 p.p. -6.1 p.p.
Net Income before Minority 120 25 275 379 (56)
Minority Interest (37) 2 (148) - (75)
Net Income 83 27 127 204 (35)
ST+LT Debt 9,363 8,382 8,948 12 5
Cash (1,932) (2,259) (2,090) (14) (8)
Net Debt 7,431 6,123 6,859 21 8
Net Debt/EBITDA 2.56 1.93 2.28 33 12
Source: Braskem 21
* Pro Forma Figures 21
22. Lengthening of debt profile
is a priority
TJLP CDI
in R$ million (3/31/08) Pré-fixado 8% 17%
2%
Gross Debt: 9,363 Net Debt / EBITDA (x)
Net Debt: 7,431
2.56
US$
1.93
Bridge
Average Term:10 years 23% Trade Loan
Finance 23% +33%
27%
31%
Dec-07 Mar-08
US$ 73%
Cash and equivalents
1,932 1,668
13%
1,143
10% 9%
9%
441 8%
7% 7%
6%
1,241 894
789 974 827 786
767 534 617 614
3/31/08 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpetual
In R$ 2013 2015 2017 2020
In US$
* Includes R$2.1 billion from bridge loan to acquire Ipiranga Group’s petrochemical assets
Source: Braskem
22
24. NPV of US$ 1.1 billion in total synergies
from Ipiranga acquisition
R$ 200 million on annual and recurring basis in the EBITDA
R$ million
Total Synergies
Synergies in 2008 (R$ 108 million) 9 200
10
14
25
69
73
Total
Industrial Commercial Logistics Supply Others Financial
Synergies
Source: Braskem 24
24
25. Accelerated Synergies in 1Q08:
R$ 136 million in annual and recurring gains
Actual Goal R$ million
Annualized
Synergies 1Q08 2008
Industrial 16 39
Commercial 42 29
Logistics 7 16
Supply 10 13
Financial 2 7
Others 1 4
Impact on EBITDA 77 108
Financial ex-Ebitda 59 80
Source: Braskem 25
26. Additional gains of R$ 100 million with
Fixed Costs Reduction Program
R$ 100 million estimated annual & recurring gains:
R$ 30 million in production costs
R$ 70 million in general and administrative
expenses
R$ 67 million already captured in 1Q08 on annualized
and recurring basis
Renegotiation of contracts: insurance, IT and telecom
Supply chain integration: reduction in inventory levels of
maintenance and production items
Optimization of the organizational structure 26
26
27. Strategic alignment with Petrobras
Superior Industry Structure in Brazil: Consolidation around 2 large
competitors (Braskem & CPS).
New Geographic growth opportunities: linked to Petrobras’
extensive footprint in Brazil and abroad
Synergies:
potential for operational integration with Petrobras refineries
Innovation & Technology: partnership with Petrobras Research
Center
High corporate governance standards: New shareholders
agreement
27
27
29. Global supply & demand
High Ethylene Utilization Rate in South America
Ethylene
MM tons
159
9
3
4
8
9
126
EHYTLENE UTILIZATION RATE (’07-’12)
(’ 07-
WORLD ≥ 88%
SOUTH AMERICA ≥ 92%
NORTH AMERICA ≥ 85%
Supply Supply
Saudi Arabia China Iran Qatar Others
2007 2012
29
Source: CMAI 29
30. Significant resins production
capacity increase…
Braskem Capacity Additions (2008-12)
Product Capacity Investment Advantage Start-up
(K ton) (US$ MM)
PP Paulínia 350 350 Diversification - Refinery Gas 2008
Green PE 200 NA Ethanol – 100% Renewable 2010
PP Venezuela* 450 900 Propane at competitive cost 2010
PVC Alagoas 200 350 Leadership and innovation 2010
PE Venezuela* 1,100 2,600 Ethane at competitive cost 2012
PP Bahia 300 NA Strengthen Market leadership 2012
Total 2,600
30
Source: Braskem * JV with Pequiven (49%) and Sojitz (2%) NA: Not Available
30
31. …Resulting in even larger scale
and increased competitiveness
Larger scale Increased Competitiveness
Venezuela
4.9
+43% million
Camaçari - BA
715
Paulínia - SP
3.4
million 1,635
4% Triunfo - RS
9%
515
515
34%
32% 57%
55%
1,110
9%
2,565
1,815
2008 2012 FYE Feedstock from Refinery Naphtha
Polyethylene Polypropylene PVC Ethanol Natural Gas
31
31
Source: Braskem
32. PP Paulínia: Proven capacity in
project management
Start up in April 2008
Spheripol technology
Global scale: 350
Kton/year
Located in the largest
consumer market in
Latin America
Feedstock: Propylene
from refinery
Investments of R$ 700
million
32
33. Braskem:
High upside potential
Dominance in the domestic market with superior profitability
Exposure to the fast-growing domestic market
NPV of US$ 1.4 billion derived from synergies and reduced fixed
costs
Growth projects with increased profitability and high ROCE
Proven expertise to implement greenfield projects
Strategic alignment with Petrobras
Innovation and Technology as key value drivers: green polymer
Experienced management team focused on value creation
Commitment to Sustainability 33
33
