braskem apres citi 23mar final

8/10/2019 Braskem Apres Citi 23Mar Final

1/51

Meeting with Investors

March, 2012


2/51

Forward-looking Statements

2

This presentation contains forward-looking statements. These statements are not

historical facts and are based on managements 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, 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.


3/51

Agenda

Overview

The petrochemical industry

Braskem key differentiators

Looking forward: Accretive pipeline in the Americas

Brazil

International expansion

Renewable chemicals

Results

Priorities

3


4/51

Leading presence in the Brazilian market: onlyintegrated petrochemical company in 1stand 2nd

generationDominant player of thermoplastic resins (PE+PP+PVC)

inSouth America

Largest PPproducer in USA

Leader in sustainable chemicals (focus on renewableraw materials)

Listed in 3 stock exchanges: BM&FBovespa, NYSE and

Latibex - 100% tag alongMarket Cap of US$7 billion and EV ofUS$13 billion

(03/15/12)

Investment grade by all 3global rating agencies:

Industrial Assets

28 facilities in Brazil, 5in USAand 2inGermany

Naphtha, hybrid and gas based crackers

Petrobras as the main supplier in Brazil(~70% of naphtha needs and 100% of gasneeds)

4

1 gas cracker

1 PP

1 PE

1 hybrid cracker

2 PP

3 PE

1

Philadelphia

1 naphtha cracker

1 ethanol cracker

5 PE

2 PP

1 PVC

1 chlorine-soda1 naphtha cracker

4 PE

1 PP

1 PVC

1 chlorine-soda

2 PP

(Wesseling

and

Schkopau)

3 Texas

1

W.Virginia

Braskem: leader in thermoplastic resins production in the Americas

R$ billion 2009 2010 2011

Net Revenue 22.6 27.8 33.2

EBITDA 3.2 4.1 3.7

Net Debt/EBITDA 2.67x 2.43x 3.20x

US$ billion 2009 2010 2011

Net Revenue 11.6 15.8 19.9

EBITDA 1.6 2.3 2.2Net Debt/EBITDA 2.98x 2.56x 2.83x


5/51

Agenda

5

Overview




Brazil


Renewable chemicals

Results

Priorities


6/51

-1

0

1

2

3

4

5

6

7

8

2011 2012 2013 2014 2015 2016

Million

Africa & India Europe & CIS M.East Americas Asia

Global additional capacity

3.6

2.2

6.5

7.3

3.2

6.3

Source: CMAI Mar/12

Iran

China

China

China

China

Iran

Iran

Very small capacity addition in 2012

compared to potential additionaldemand of 6 million ton/year

Limited/no further availability ofsubsidized gas for new projects inMiddle East (2015/16) hybridcrackers (naphtha/gas)

Iran sanctions could delay announcedinvestments (ethane as feedstock)

Projects in U.S. are not sufficient todisrupt the world supply and demandbalance

China will still be a net importer

Greenfield project: 4-5 years start-up

Most of the feedstock associated withthe new additional capacity is oilprice driven

Ethylene: additional capacity

6


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Outlook for the petrochemical industry scenario remainspositive

Global GDP: average growth of 3.4%

Demand should outpace capacity increasehigher operating ratesinternational spreads improvement

Emerging markets are the key drivers

Ethylene: Supply and Demand Overview

Source: CMAI mar/12

CAGR 11-16: 3.3%

CAGR 11-16: 4.5%

84.9 85.2 87.4 87.5 87.4 89.6 89.2Operating Rate

122125

131137

143 150

156144

147 150156

163167

173

2010 2011 2012e 2013e 2014e 2015e 2016e

Demand Nameplate Capacity

7


8/51

Agenda

8

Overview




Brazil


Renewable chemicals

Results

Priorities


9/519

A winning history. Consistent delivery of results: successful

trajectory of organic growth and acquisitions

Capacity (kton/year)

Leadership in Brazil Going GlobalLeadership in the Americas

PVC ExpansionSunoco PP Plants

Politeno

EBITDA 1(US$ million)

Braskem (Aug, 2002)CopeneNitrocarbonoProppet PolialdenTrikemOPP

CAGR: 19%

Market Cap

(US$ bi) 0.2 1.6 4.6 2.9 2.6 3.7 1.2 4.0 9.1 6.6

*Pro-forma figures for 2009: Quattor+Braskem America

Dow PP Plants

1,200 1,280 1,280 1,280 1,2802,480 2,480

3,752 3,752 3,752 3,7521,765 1,765 1,865 1,9102,341

3,071 3,441

6,460 6,460 6,4307,680

200 200

200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

457581

872 851 764

1.6261.385

1.638

2.308 2.246

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Green

Ethylene

Ethylene

Resins


10/5110

Braskem: unique position in the global industry

South America:Second player has around10% of Braskems capacity

South America# 12 players

North America# 32 players

M.East# 38 players

W.Europe# 29 players

N.Asia~# 150 players

S.Asia~# 40 playersBraskem: 5,510

PBB Polisur (Dow): 650

Ecopetrol: 548

Solvay Indupa: 541

Polinter: 495

Mexichem: 416

Pequiven : 185

Petroken (LYB): 180

Petroq. Cuyo: 130

PETROQUIM : 120

Propilven : 115

Petro Dow: 42

Capacity (000 Metric Tons)

Braskem responsible for over 60% of the capacity share of thermoplastic resins* in SouthAmerica65% market share in Brazil.

Source: Analysts reports, CMAI capacity list * PE, PP and PVC 40% Petrobras Energia; 50,5% Admire Trading Corp and 9,5% Panam SA


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20 22 23 2326 25

2006 2007 2008 2009 2010 2011e

Brazilian demand: potential of further growth

11Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE.

Brazil

Per-capita Consumption of PE, PP and

PVC* kg/person

Brazilian's thermoplastic demand (MMton)

CAGR: 5.8%

3,74,0

4,2 4,3

4,9 4,9

2006 2007 2008 2009 2010 2011

66

57

47

34

USA Eur ope Japan China

Real appreciation

Subsidized portsPRS 72**

Brazilian thermoplastic resins

demand growth

** Resolution Proposal of the Senate


12/51Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE * Polyethylene, Polypropylene and Polyvinyl Chloride

Braskem is well positioned to capture emerging market potential

per-capita growth

12

Average Income (March 2002 = 100 basis)

Higher income and wealth

distribution improvement stimulate

consumption demand in Brazil

Braskemssales profile: Consumer driven

30%

10%

9%11%

14%

6%

5%

5%

10%

AGRIBUSINESS

AUTOMOTIVE

RETAIL

OTHERS

FOOD PACKAGING

CONSUMER

GOODS

HYGIENE AND

CLEANINGINDUSTRIAL

CONSTRUCTION

207

80

100120

140

160

180

200

220

mar/ 02 jun/ 03 s et/04 dez/05 mar/ 07 jun/ 08 s et/09 dez/10

Average Income

Jan/12
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1,411 1,510 1,457 1,3612,040 2,238

358 342725

395

1,0921,547

1,084 1,2021,472

1,321

1,931

2,014

2006 2007 2008 2009 2010 2011

Braskem: raw material diversification and higher co-products value

improving its cost position

Source: Braskem

Raw Material Profile*

*Based on ethylene capacity.

Net revenue (R$ million)

Naphtha crackers co-products

13

16%

78%

5%

Braskem 2012

33%

63%

4%

Braskem 2015e 1

gas naphtha ethanol

45%

52%

3%

Braskem 2018e 2

1 Considering Mexico Project2 Considering Comperj Project

662 703 602

1,254932 872

151 149 204

352

328 312530591

332

8301,121

984

2006 2007 2008 2009 2010 2011

Ethylene/Propylene Butadiene BTX

Sales volume (kton/year)

2,853 3,054

3,6543,077

5,063

5,799


14/51

Innovation & Technology

Strengthening the value chain competitiveness

14

Structured resource base to support

Customer needs

Over R$ 390 million in R&D assets

More than 296 researchers

8 pilot plants + 24 laboratories + 2technology centers

More than 400 patents filed worldwide

Partnership with universities and R&Dcenters in Brazil and abroad

13% of resins revenues resulted fromnew products launched in the past 3years

Polyethylene

Grain bags Water tanks

+ 32kton/y

Geomembrane

+ 10kton/y+ 5kton/y

Roof Tiles

+ 120kton/y

Windows

+ 2kton/y

Building system

+ 30kton/y

PVC

P

olypropylene

Auto grade Wash machine

+ 4kton/y + 6kton/y

Bags

+ 2kton/y

NEW DEVELOPMENTS

Chamar visio neste slide

Strengthening the plastics

production chain

Supporting the individual development ofeach Customer

Boosting Customers competitiveness, while

ensuring sustainable growth

Strengthening Brazils plastics productionchain


15/51

Government Initiatives

Supporting the competitiveness of the Brazilian Industry

Brasil MaiorInvestment and

Innovation Incentives

Government Incentives

Lei do Bem

Innovation Incentives

Benefits

Tax Benefit: between 60% to 80% of Innovation

expenditures can reduce the companys tax base

Full depreciation and 50% IPI reduction: equipments

purchase dedicated to research

Exports: 3% credit on exports revenues (REINTEGRA)

BNDES/ FINEP*: attractive financing programs (below

Brazilian interest rate)

IPI:Warehouse goods and automotive industry: higher

product demand

Innovation Incentives:

Stimulate technological developments Intensify industry's competitiveness in domestic and foreign markets

* Studies and Projects Financing - (Financiadora de Estudos e Projetos) 15


16/51

Agenda

16

Overview




Brazil


Renewable chemicals

Results

Priorities


17/51

Our strategy is based on 3 major drivers of growth

17

Key differentiators

Adding value to the current streams

Strategically positioned to capture the futurefeedstock availability (pre-salt exploration: Comperj)

Committed to the competitiveness of the domesticplastic chain

Brazil

Expanding presence in countries with feedstockadvantage

Preferred partner to develop the industry in LatinAmerica

Ongoing project: Mexico Ethylene XXI

InternationalExpansion

Largest biopolymer player in the world Well positioned to capture ethanol advantage

Technological breakthrough in green: PE, PP and otherstreams (under analysis)

SustainableChemicals

To be the

global leader insustainablechemicals,

innovating tobetter serve

people

Innovation & Technology


18/51

Brazil

Adding value to the existing streams

18

PVC Expansion:

Sole integrated producer in the vinyls chain in the Brazilian market

Additional capacity of 200 kton/y in Alagoas (northeast complex) using

its current EDC surplus (intermediated product to produce PVC)

Start-up: May 2012

Construction: in the final phase. 80% of works completed

Capex of US$470 million and expected NPV of ~US$450 million

Investment to date: R$ 604 million (2010-2011)

Market-driven project: to supply the growing domestic demand of PVC

Demand increased 4% in 2011 with imports of 330kton/y

Scenario:

EDC

ExportsDomestic Sales

PVC

Present Future

21%25% 29%

2009 2010 2011

Producers' Domestic Sales Imports

1,1251,081

943 29%26%22%

kton


19/51

Brazil

Adding value to the existing streams

19

Butadiene Expansion:

Additional capacity of 100 kton/y in Triunfo (south complex) using its

current crude C4 surplus

Start-up: July 2012

Construction: 69% of the project completed, test phase

Capex of R$300 million

Investment to date: R$ 127 million

Product pre-sale agreements of ~R$200 million

Market-driven project: to meet the growing global demand for

butadiene

2011 prices vs. 2010 rose by 55%

Raw material for the manufacturing of rubber tires and

synthetic rubbers

Comperj

2011: conclusion of the first phase of the FEL1 (Front End Loading)

engineering process

2012: final detailing of the scope of the petrochemical project at

Comperj (FEL2), based on the definition by Petrobras of the

feedstock to be used

2014e: definition on the development and installation of the project

and its approval by the CompanysBoard of Directors

Scenario:

Crude C4

Stream*

Present Future

* Sporadic sales or re turn to the cr acking process

Butadiene

100 kton/y


20/51

International: Mexico

Feedstock diversification with competitive cost

20

Greenfield ProjectEthylene XXI:

JV (65% Braskem and 35% Idesa)

Largest petrochemical complex in Mexico

World scale integrated project: 1 Mton/y of ethylene +

1Mton/y of PE

Adding capacity to supply the local and growing market:

Current deficit: 1.1 Mton/y of PE (70% of total

demand supplied by imports)

Long term contract (20 years) with PEMEX-Gas, based on gasprice Mont Belvieu + discount

Start-up: 1sthalf 2015

Disbursement in 2011: R$ 191 million

Acquisition of equipment with long manufacturing

and delivery lead times was moved forward

Earthmoving works have begun

Capex of ~US$3 billion (70% debt and 30% equity)

2012 Priorities:

Project Finance structuring and conclusion of the due

diligence

Starting construction of the industrial plants

Pre-marketing for Mexican clients

Micros

60%Small

24%

Medium

12%

Big; 4%

Small

45%

Medium

28%

Big

27%

Converters Profile

Mexico Brazil

Ethylene XXI


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Sustainable chemicals

Strategic path forward for our Renewable Chemicals business

21

1stWave

Get to know the Market

2ndWaveGrow

3rdWave

Perpetuate

Sustainable growth toconsolidate PE and PP

Leadership

~2020 Leverage assets

and be pioneer

2010 - 2014

New capacities to increase

market positioning

and competitiveness

2015 - 2019

Phases

We arehere

Capacity

GreenPP

30kt+ Green PPExistent Technology

New capacity Green PPTechnology

Improvement

Bigger CapacitiesGreen PP

Bio chemical route

GreenPE

200 ktGreen PE(Triunfo-RS)

New capacitiesGreen PE

AdditionalCapacities

Capacity 230 kt+ TBD TBD

Green PE


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Green PEPartnership with leading global companies reinforce sustainability

strategy

National and international market Leader ensure that

Braskemsbiopolymer adds value to their business andsustainability strategy:

Danone

Faber-Castell

Johnson & Johnson

Estrela Amsterdam Arena

Nestl

Natura

P&G

Chanel Tigre

Braskem ranked as a Model Company in the 2011 Sustainability Guide by Examemagazine22


23/51

Agenda

23

Overview




Brazil


Renewable chemicals

Results

Priorities


24/51

2011 Highlights

Year performance

Average capacity utilization at crackers of 83%

Net revenue of R$33 billion (US$20 billion), up 19% (25%) from 2010

2011 EBITDA of R$3.7 billion, or US$2.2 billion

Power blackout

Higher supply of imported goods entering through subsidized ports + real appreciation

Capture of synergies from Quattor acquisition of R$400 million in annual and recurring EBITDA,6% above initial expectation

Implemented in 2H12 of a program to reduce fixed costs, which neutralized the impacts frominflation (IPCA) of 6.5%, wage increases and integration of the new assets

Partnership with Basf to supply propylene to the acrylic complex to be built in Bahia

Conclusion of 1stphase of engineering project for Comperj (FEL1)

Leadership in the U.S. polypropylene market

Braskem considered investment grade by 3 major risk-rating agencies

Dividend proposal of R$482 million

24


25/51

Uncertainties related to the global economy and imports limited

growth in the domestic resin market

Origin of Imports (PE+PP+PVC) Brazilian Thermoplastic Resins Market

(million tons)

Imports accounted for

29% of domestic resin

market in 2011

Over 60% of imports

entered Brazil through

subsidizedports

2010 2011

4.9 4.9

Argentina

22%

North America

24%

Colombia

13%

Asia

17%

Europe

9%

Others

15%

2011 GDP

2.7%

2011 Plastic goods volume 2011*

6.4%

2011 Plastic industry**

-1.5%

2011 Imports of converted plastics ***

7.5%

Domestic Consumption growth not captured by

Brazilian industry

Source: IBGE/ Abiplast / Alice / Braskem estimates

* Brazilian demand for plastic goods (apparent consumption) **Production from the plastic industry ***Imports volume of converted plastics

-1%

25

Attractive domestic market associated with the opportunistic


26/51

153 158 150 158 175 159178

210 211 206250 253 234

267 288 28346 42 49 54 50 39 48

74 67 71

73 6764

86

11367

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Attractive domestic market associated with the opportunisticentrance through subsidized ports lead to an increase in the level of

imported material

199

350

401

4.2 MM ton 4.2 MM ton 4.9 MM ton 4.9 MM tonTOTAL

DEMAND

Kton

PVC: net importer market

Higher imports of manufactured products have impacted resins market

200 199 212225

198226

284 277 277

323 320299

353

811

933

1,197

1,403

% through

Subsidized Ports 45% 51% 62% 64%

Average FX 1.83 2.00 1.76 1.67

RESINS IMPORTS:

+15%

+28%

+17%

Economic and Financial crisis - USA & Europe

PVC

PE+PP

26


27/51

R$ million

The lower sales volume and BRL appreciation were partially

offset by the better performance of basic petrochemicals and

the reduction in expenses.

EBITDA Performance2011 vs. 2010

4,055

338

136

332

221 3,742

EBITDA2010 Volume ContributionMargin FX Fixed Costs +SG&A + Others EBITDA2011

FX impact

on costs 1,355

FX impact

on revenue(1,687)

( )

( )

27


28/51

Synergies from Quattor acquisitionIn 2011, synergies amounted to R$400* million, 6% above the estimate of R$ 377 million

Full synergies of R$495 million in annual and recurring EBITDA should be captured in 2012

Better planning of export activities

Reduction in the number of grades

Integrated acquisition of feedstocks, such as naphtha and propylene

Better integrated planning of petrochemical complexes and 2ndgeneration plants (thermoplastic

resins)

Synergies breakdown Income statement breakdown

Source: Braskem * Annual and recurring

268

400

67

65

Industrial Logistics Supply EBITDA Synergies

R$ million

115

400

277

124

Revenue COGS SG&A + Fixed Costs EBITDA Synergies

R$ million

28

St t t l th d bt fil d t it t t


29/51

Risk Agency Rating Outlook Reviewed on

Fitch BBB- Stable 11/01/2011

S&P BBB- Stable 03/30/2011

Moodys Baa3 Stable 03/31/2011

Corporate Credit RatingGlobal Scale

Diversified funding sources

Net Debt/EBITDA (US$)

Braskemshigh liquidity ensures its cash and cash equivalents

cover the payment of obligations maturing over next 29 months

1Considers US$600 million in stand-by loans

Brazilian andForeign Gov.

Entities

23%

Banks

37%

Capital

Market

40%

2.32x

2.83x

Sep 11

Dec 11

+22%

Strategy to lengthen debt profile and strong commitment to

maintaining liquidity

3,192

2,369

1,403 1,2931,822

1,134 1,214

1,908

3,295 3,221

823

1,125

*

2012 2013 2014 2015 2016 2017/

2018

2019/

20202021

onwards12/31/11

Cash

9% 8%

12%

7% 8%

12%

22% 21%

4,317

Invested in US$

Invested in R$

Amortization Schedule(1)

(R$ million)

12/31/2011

(1) Does not include transaction costs

* US$600 million stand by

29


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Capex


31/51

Capex

Investments totaled R$2.1 billion in 2011

Main deviations from initially announced 2011 Capex:

Investments in Ethylene XXI - Mexico project due to the moving forward of earthmoving works and the advances made to

acquire equipment with long manufacturing and delivery lead-times;

Acceleration of PVCand Butadienecapacity expansion projects, in line with the Companys strategy to add valueto existing

streams;

Higher spending on maintenance, due to the unscheduled shutdowns at plants in the Northeast and the moving forward of

the scheduled shutdown on one of the lines at Camaari.

R$ million

1,644 102

289(36)

781

2,078

Investments

2011e

Mexico Capacity

Increase - Brazil

Equipment

Replacement

Maintenance

Shutdown

Others* Investments

2011

*Includes HSE, Productivity and Others investments

280

84

469

696

207

151

191

305

35

343

512

145

113

260Mexico

HSE

Equipment Replacement

Capacity Increase - Brazil

Maintenance

Productivity

Others

1,712

Investments

2012e

278

94

391

407

243

14289

31


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33/51

Short-term scenario still challenging

Source: CMAI, Analyst reports

Points of Concern

Volatility in naphtha and oil prices

Lack of clear strategy for tackling Europes sovereign debt crisis

and its impacts on world economic growth demand forpetrochemicals

Lengthy solution for subsidized ports problems

Potential Positive Factors

Scheduled shutdowns in USA and Asia

Positive signs from U.S. economy

Higher economic importance of emerging countries

- Growing demand for high value added productsplastics

Limited addition of new capacities in 2012 andrestocking trend in chain could lead to a recoveryin petrochemical spreads

Government committed to increasing thecompetitiveness of Brazilian industrial producers

- BrasilMaiorPlan (Reintegra)

- Combating imports

- Measures to control excessive BRL appreciation33


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2012 Braskemspriorities

Strengthening of the partnership with Clients and market share expansion

Ending of the VAT tax incentive (subsidized ports) and development of a Brazilian industrial policy

that reinforces the competitiveness of the national petrochemical and plastics chain

Expansion of Braskemscompetitiveness by capturing identified synergies, reducing fixed costs and

maximizing operating efficiency

Ensuring delivery of expansion projects on-time and on-cost, adding value to existing streams:

PVC (May/12) and Butadiene (July/12)

Finalizing project finance structure and advancing construction of Mexican greenfield project, with

startup expected in 2015

Further progress on engineering studies for Comperj (FEL2) and feedstock definition

Increasing Braskems leadership in renewable chemical

Maintaining liquidity and financial health in a scenario of global crisis

34


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Meeting with Investors

March, 2012


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Appendix

Braskem


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BraskemCorporate Governance Principles

50.1% / 38.1%

Minority

Shareholders

47.0% / 36.0%

Voting Shares / Total Shares

0.0% / 5.5% 2.9% / 20.1%

- World leader inE&P in deep

waters;

- Present in theindustry asinvestor, supplierand client;

- Investment Gradeby all 3 RatingAgencies.

- Conglomerate;

- More than 30-yearsin the petrochemicalindustry;

- Investment Grade byMoodys and Fitch.

Odebrecht as the controlling shareholder reinforces Braskemscondition as a listed privately-owned company

Rules for choosing the CEO and Directors

Odebrecht appoints the Chairman, the CEO and the CFO;

Petrobras appoints the Vice-Chairman, as well as three options for Portfolio & Investment Director, one

to be selected by the CEO; All the positions will be filled by highly qualified professionals with recognized competency for the

position.

Braskem Executive Directors in charge of operational issues and Companys Business Plan which shall beapproved by the Board

Sole vehicle for petrochemical investments of both shareholders, Braskem has the right:

to lead all petrochemical investments identified by Petrobras;

if not of its interest, has the right to commercialize such products.

Governance

37


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3,035 3,0353,927

4,641

2,525

1,063

2,292

926 1,180

3,3902,885 1,230

1,911

863 815 440

710

510

1,376

2,640

7,135

6,430

5,1574,641

4,436

3,3022,640

2,2921,741 1,620

Braskem Braske m w/ PP

Dow e w/ PVC

Expansion

Exxon Mobil DOW LyondellBasell Formosa Shin-Etsu Chevron Phillips Ineos Total

PVC

PP

PE

1st

5,075 4,920

7,3225,768

8,289

3,0352,102

3,056 3,035 2,8242,059

4,6595,696

2,150

2,904

3,935

2,2731,705

2,885 2,968

2,715

930

351

710

3,169 1,729510

10,664 10,616

9,472 9,023

8,2897,680 7,544

6,490 6,4305,792

4,774

SINOPEC LyondellBasell Exxon Mobil SABIC DOW Braskem Formosa Ineos Braskem w/ PPDow e w/ PVC

Expansion

PetroChina Total PC

PVC

PP

PE

Global capacity (kty)

Americas capacity (kty)

Thermoplastic resins capacityGlobal ranking

8th

Source: CMAI, Braskem

6th

38


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154 158162 166

171 176

125 131 137143 150 156

2011e 2012e 2013e 2014e 2015e 2016e

Supply Demand

Global Ethylene and Resins supply/demand

Source: CMAI, Mar 2012

Global Resins Supply (Mton/y) Global Resins Demand (Mton/y)

* Compounded Annual Growth Rate

Global Ethylene Supply/Demand (Mton/y)

CAGR 11-16

2.5%

CAGR 11-16

3.2%

93 95 99 105 108 113

63 66 6973 76

78

51 54 5556 57

57

2011e 2012e 2013e 2014e 2015e 2016e

PE PP PVC

207 214224 234

240 248

76 80 84 89 9397

51 53 5659 62

6536 38

40 4143 44

2011e 2012e 2013e 2014e 2015e 2016e

PE PP PVC

163 171179 189

198 206

39


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Resins demand by region

Source: CMAI 2011 estimates

2012e

According to CMAI the Brazilian demand for resins will represent 3% of global

demand in 2012

2016e

Resins (PE, PP, PVC) Demand by region

40

North America;

17%

South America;

5%

Europe; 18%

Middle East;

12%

Africa; 3%

Asia ex-China;

22%

China; 22%North America;

16%

South America;

5%

Europe; 17%

Middle East;

13%Africa; 3%

Asia ex-China;

22%

China; 24%


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Source: Abiquim, Braskem

Origin of Imports 2011

Polyolefins (PE and PP) and PVC

imports accounted for 29% of the

domestic market

PE + PP PVC

Europe

12%

Asia

18%

Colombia

3%North America

26%

Argentina

20%

Others

21% Argentina

26%

North America

20%Colombia

35%

Asia

15%

Others

2%

Europe

2%

41


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Revenues breakdown

2011 RevenuesR$ 33,2 billion

38%

5%26%

10%

13%

7%

Polyolefins Vinyls Basic Petrochemicals International Business Resale Others + Quantiq

42


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International sales Breakdown2011

Source: Braskem

International sales ex-Resale (R$ 9,3bi)

The Export Market (ex-resale) represents 30% of Companys Net Revenue

43

Polyolefins

37%

Ethylene +

Propylene; 4%

Butadiene; 3%

BTX

9%

International

Business

34%

Others

13%


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South America43%

Europe

25%

Asia23% Africa

6%

North America

2%

Central America

1%

Polymers Export2011

Polymers Export by region (R$3.7 bi)

Qualified

Sales

44


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EBITDA Performance4Q11 vs. 3Q11

45

R$ million

EBITDA impacted mainly by the decrease in contribution margin

caused by the lower spreads in international markets, which

were partially offset by lower expenses.

940

58

345

62

119 718

EBITDA

3Q11

Volume Contribution

Margin

FX Fixed Costs +

SG&A + Others

EBITDA

4Q11

FX impact

on costs (723)

FX impact

on revenue785

( )

( )


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Debt Market: Successful transactions guarantee a good portfolio of


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Debt Market: Successful transactions guarantee a good portfolio of

outstanding bonds

47

Outstanding Bonds Maturity

Coupon

(% p.a.)

Yield **

(% p.a.)

US$84.3 million* Jan/2014 11.750 2.866

US$65.3 million* Jun/2015 9.375 4.072

US$130.7 million* Jan/2017 8.000 5.239

US$500 million Jun/2018 7.250 4.679

US$750 million May/2020 7.000 5.067

US$500 million Jul/2041 7.125 7.062

US$750 million +

US$250 million RetapApr/2021 5.750 5.026

US$450 million +

US$250 million RetapPerpetual 7.375 7.252

** Mid. As of Mar, 20th* Post Tender Offer expired in April , 20th

Re-Opening of Braskem 5.75% Notes due in 2021

Pricing Day: January 26th

, 2012Amount: US$250 million

Coupon: 5.750%

Yield: 5.750%

Transaction Highlights:

US$2.3 billion in demand from over 185 accounts. The transaction

was oversubscribed 9.2x

Re-opening executed at a yield 25 bps lower than the original

transaction

Lowest New Issue Concession for an Emerging Market

Corporate Bond Year-to-Date (10 bps)

Re-Opening of Braskem 7.375% Perpetual Bonds

Pricing Day: February 9th, 2012

Amount: US$250 millionCoupon: 7.375%

Yield: 7.345%

Transaction Highlights:

US$1.6 billion in demand from over 150 accounts. The transaction

was oversubscribed 6.5x

Priced at 100.375% face value

Source: Bloomberg and Citibank

Outstanding Bonds

C


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Source: Braskem

FacilityAmount in

Dec 11Currency Type

Contract

Date

Nippon Export andInvestment Insurance

US$14 MM US$ Maintenance Mar andSep/2005

Nippon Export and

Investment InsuranceUS$200 MM US$ Maintenance Mar/2011

*The company is prevented from issuing any new debt for the period if it overcomes the 4.5x Net debt / EBITDA ratio.

Covenants

48

2.32x2.83x

Sep 11 Dec 11

Net Debt/ EBITDA

(US$ million)

+22%

2.62x3.20x

Sep 11 Dec 11

Net Debt / EBITDA

(R$ million)

+22%

A i iti f D P l l B i


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Acquisition of Dows Polypropylene Business

49

Benefits and strategic drivers:

Leader in U.S. PP market, one of the worlds largest

PP consumers

Geographic diversification and global expansion of

industrial operations

Portfolio of complementary products

Focus on higher value-added products (co-polymers)

Access to U.S. propylene distribution chain

Transaction:

On July 27, Braskem acquired Dows

Polypropylene (PP) business,expanding its PP capacity by 1,050ktons/years

Braskem will pay US$323 million forthe business

BraskemPost

Transaction

LyondellBasell

ExxonMobil

Corp.

Total Braskem FormosaGroup

Ineos ConocoPhillips

1,425 1,4221,230 1,180

920 863 815

447

1st

4th

PPCapacityinthe

USmarket(kton/y)

Value creation through potential synergies with thecurrent business

NPV near US$140 million

Greater presence in the European market Proximity to new clients

Support to global leadership in biopolymers

PP is one of the worlds faster growing

thermoplastic resins

Fragmented markets in U.S. and Europe - potentialfor future consolidation


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B k i ith D PP b i i iti


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Portfolio

Optimization

Industrial Procurement Logistics / Supply

Chain

1-Time Costs TOTAL

Braskem synergies with Dow PP business acquisition

Components of Synergies

NPV of synergiesexpected to be around

$140MM

Annual run-rate

synergies

between US$ 18-

20 million

Timeframe of

capturing the

synergies to be

disclosed after

closing the deal

Portfolio

optimization

and product

mix savings

Quality &

reliability

improvements

at US assets

Raw material

optimization

Product

wheel in NA

& railcar

optimization

IT, closing

costs and

integration

costs *

braskem apres citi 23mar final

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