presentation to ini individual investors

May, 2006

José Marcos TreigerHead of Investor Relations

Individual Investor Meeting

22

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 on which they are made (March 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.

33

Value Creation to Shareholders

Plastic and the Petrochemical industry in Brazil

Agenda

Braskem: World class Brazilian petrochemical

44

The History of PlasticThe History of Plastic

1839 Charles Goodyear discovers the vulcanization of rubber from latex

1862 Parkes presents its first products made of Parkesine – a compoundmade of pulp nitrate, naphthalene and camphor.(eg. pool ball)

1872 The discovery of PVC through the polimerization of vinyl cloridecatalized by sun light

1909 L. H. Baekeland announces the discoverty of a phenol resinand registers the patent as Baquelite: first synthetic polymer.

55

The History of PlasticThe History of Plastic

1920 In the USA, Ford uses compounds made of phenolic resinswith fabric to produce car parts.

1937 Low density polyethylene was discovered, as a powder,in England.

1954 G. Natta prepares isostatic polypropylene to be producedby Montecatini in Ferrara (Italy) in 1957.

1954 High density polyethylene was created by Professor Zieglerat Philips Petroleum.

1964 The copolymers of ethyl-acetate of vinyl (EVA) were developped for sale.

66

The market for plasticsThe market for plastics

Pharmaceutical

White Goods

Consumption Goods

Automotive

Hygiene and Cleaning

Food and Beverage

Textiles

Agribusiness

77

Petrochemical industry in South AmericaBraskem – Consolidated as the largest producer in the regionPetrochemical industry in South AmericaBraskem – Consolidated as the largest producer in the region

Source: CMAI and Braskem

6.1 million tons in total annual capacity of chemical and petrochemical products

Eteno

PVC

PE

PP

700

700

1,400

Dow

1,135

Copesul1

520

540

1,060

Rio Polímeros2

520

150

670

Ipiranga

500

130630

PQU / Unipar

85

476

561

Solvay

1,280

1,230

580

515

3,615

Braskem

625

Suzano

000 tons / yearRegional CapacityRegional Capacity

1. Braskem controls Copesul together with the Ipiranga Group

2. Jointly controlled by Suzano, Unipar, Petroquisa and BNDES

88



Agenda


99

Current Ownership (*)

Free-Float above 50%Current Ownership (*)

Free-Float above 50%

% Voting Capital % Total Capital

Controlling Shareholder

Investments in affiliated companies

Source: Braskem

* On April 31, 2006

29.5% 29.5% 100.0% 96.1%100.0% 63.7%

POLIALDEN

FREE FLOATPETROQUISA8.4%

ODEBRECHT51.9%30.5%

NORQUISA9.1% 10.0%48.6% 25.4% 16.0%

1010

A new approach to the Brazilian petrochemical sector

Strong platform for growth

Oil exploration 1st Generation 2nd Generation 3rd Generation

INTEGRATION

New dynamics in the value chain

NaphthaNaphtha andand CondensateCondensate CompetitivenessCompetitiveness

1111Source: Braskem and FIERGS/CEPAL

Perspectives for 2006:

Lingering of global economic growth, led by China and India

In Brazil:

Gradual reduction in interest ratesIncrease in public investments in infrastructureProbable domestic demand boost coupled with higher expected GDP growthIncrease in disposable income

Market segmentation for Braskem’s resins in 2005

* Includes personal hygiene, infrastructure, electronics, auto parts and others

% of Revenues% of Revenues

*

FOOD AND BEVERAGES33%

CONSUMER GOODS15%

CIVIL CONSTRUCTION15%

OTHERS16%

RETAIL9%

AGRICULTURE7%

COSMETICS AND PHARMACEUTICALS

5%

Sales Diversification at BraskemSales Diversification at Braskem

1212

Braskem is the Market LeaderStrengthened with the acquisition of PolitenoBraskem is the Market LeaderStrengthened with the acquisition of Politeno

Source: Braskem

2005MarketMarket--Share (Brazil)Share (Brazil)

PE (After the acquisition)

PE (Before the acquisition)

30%

18%52%

46%

18%

36%

PVC

PP

49%42%

9%

Braskem

Imports

Others

55%

28%

17%

1313

1Q06 HighlightsAccumulated results for the last twelve months

2,7081,803

EBITDA

-33%

11,169

1Q06

Net Revenues

-7%

1Q05

11,978

1Q06

887

Net Income

-33%

1Q05

593

R$ million

1Q061Q05

1Q05

1Q06Price

O thers FX Volume

68

(111)

319

Raw materials

(457)

(107)

688400

Price Volume

FX1Q05 1Q06

1,256

277

(70) 1,242

(221)

Impacts on EBITDA and CoGS Impacts on EBITDA and CoGS –– 1Q05 x 1Q061Q05 x 1Q06 R$ million

EBITDA CoGS

1414

Revenue in constant growthChallenging current scenario due to strong R$

2002 2003 2004 2005

R$ millionGross RevenueGross Revenue

11,284

8,858

14,342 15,193

20% CAGR

US$ millionGross RevenueGross Revenue

R$ millionNet RevenueNet Revenue

18% CAGR

US$ millionNet RevenueNet Revenue

26% CAGR

9,191

6,991

11,04411,607

3,6883,013

4,900

28% CAGR

6,252

3,0082,375

3,771

4,775

2002 2003 2004 2005

2002 2003 2004 2005 2002 2003 2004 2005

Source: Braskem

1515

TJLP24% CDI

28%Pré1%

US$47%

40%

Debt Profile16 years of average debt maturity (April) and reduction in FX exposure

Source: Braskem

Net Net DebtDebt / / EbitdaEbitda**

Mar 2006

+21%

Dec 2005

Net Net DebtDebt (US$ MM)(US$ MM)

Mar 2006

+12%

Dec 2005

*Subordinated debentures, with payment of interest and principal scheduled for July 2007, fully subscribed by the controlling shareholder

Average Maturity9.3 years

Gross DebtR$ 5,646 million

AmortizationAmortization ScheduleSchedule R$ million

03/31/2006Cash and cash

equivalents

12%

31%

19%

8%

2007 2009

1,103666 726 444

2008

810(em R$)

1,299(em US$)

1,033*

2010

7%

381

23%

2011...

1,293

2,109

*LTM – last twelve months

1,454

1,211

240243

1,388

1,628 1.971.63

1.671.36

Trade Finance

7%

TypesTypes ofof FinancingFinancing

CVM 408

20069 months

1616

A Level 1 Company in BOVESPA since February 13th, 2003

Intention to move up to BOVESPA’s Level 2, in 2005

100% tag-along rights - in case of transfer of control - for all shareholders and all classes of shares

Code of Conduct: sets values, principles and practices governing corporate behavior

Pre-established corporate policies:Trading of securitiesFinancial management Insurance and GuaranteesHealth, Safety and Environment

Compliance with SOx by Dec 2005

Qualified, motivated and experienced management

High levels of Corporate Governance

1717

Braskem Aiming at Sustainable DevelopmentBraskem Aiming at Sustainable Development

ECONOMICSECONOMICS

To ensure operational excellency and to develop Sustainable Products, using minimum natural resources and competitive raw materials. To properly divulge to the interested parties and to develop strategic alliances.

To be recognized as a transformation agent in environmental awareness, in the development ofself-sustainable communities and in the creation of social responsible products. To promote qualityof life inside and outside of the company.

SOCIALSOCIAL

To be a reference in sustainable development through eco-efficiency, in the use of clean tecnologiesand in the use of renewable raw materials, by promoting environmental education andinfluencing the production chain as a whole.

ENVIRONMENTALENVIRONMENTAL

1818

Corporate Responsibility

Braskem is committed to the well being of its surrounding communities through a number of programs directed towards

Environmental education

Recycling of plastic waste

Social and cultural inclusion

First Brazilian company to sign the “International Statement of Cleaner Production”, a United Nations initiative in Environmental Protection

Social responsibility

1919

Safety and Environmental Concern

Safety performance in line with the best petrochemical companies worldwide

All industrial plants are ISO 14001 certified

Continuous improvement in environmental performance

6% reduction in water consumption (~ to the consumption of 12,000 people per year)27% reduction in liquid effluents (~ to the sewage of 33,000 people per year)

39% reduction in industrial waste (~ to the garbage of 21,000 people per year)

2020



Agenda


2121

Hight returns in the long-term and LiquidityPerformance above the main indexes and high liquidityHight returns in the long-term and LiquidityPerformance above the main indexes and high liquidity

Source: Braskem - Dec 2002 = 100

Braskem (BRKM5) confirmed its position as the 9th most liquid share in the Ibovespa index, with a 3% share in the theoretical portfolio from May to August2006.

60% above iBovespa572

358

426401

0

200

400

600

800

1000

1200

1400

dec-

02fe

b-03

apr-0

3ju

n-03

aug-

03oc

t-03

dec-

03fe

b-04

apr-0

4ju

n-04

aug-

04oc

t-04

dec-

04fe

b-05

apr-0

5ju

n-05

aug-

05oc

t-05

dec-

05fe

b-06

apr-0

6

Braskem Ibovespa IGC Petrochemical industry

2222

Payment of R$ 326 million to shareholders in 200560% increase when compared to 2004Payment of R$ 326 million to shareholders in 200560% increase when compared to 2004

326

204

20052004

Dividends and Interest on EquityDividends and Interest on Equity R$ million

60%

48

30

20052004

Dividend PayDividend Pay--outout %

60%

2323

Strategy to grow with value creation

Strengthen market leadership in Brazil through consolidation in the local market, capturing synergies

Expand production and sales outside of South America, capturing value and creating a growth platform for the future

Organic Organic GrowthGrowth

Selective Selective GrowthGrowth

Enhancement of the Enhancement of the Aromatics Chain Aromatics Chain

InternationalizationInternationalization

Value creation

Consolidate market position in key products in Latin America and guarantee competitive sources of raw material

Leverage aromatics production chain by broadening its portfolio of products and services in the local market

2424

Growing investments: confidence in the futureR$ 900 million in investments to be made in 2006Growing investments: confidence in the futureR$ 900 million in investments to be made in 2006

InvestmentsInvestments

Completed 1Q06 2006

142

900

R$ million

244

202

151

134

118

51

23

27

27122429

16%

Capacity Increases

Equipment

Health, Safety & Environment

Technology

Productivity

Quality and others

Capacity Increases

Equipment

Health, Safety & Environment

TechnologyProductivity

Others

2525

Value creation to shareholdersValue creation to shareholders

55

R$ 350 million per year in recurring synergies, already captured

Strong platform for growth

R$ million

240

Jun/03

260

Sep/03

285

Dec/03

208

Mar/03

310

Mar/04

330(2004)

Target

350

Dec/04

Synergies

A World-Class Company

New Levels of Competitiveness

• Best Practices• Simplification• Integration• Compliance to

to SOx

Innovation & Technology

Braskem Business SystemBraskem Business System

2626

Braskem +Significant acceleration in capturing productivity gainsBraskem +Significant acceleration in capturing productivity gains

Results Achieved by 1Q06Results Achieved by 1Q06

Annualized and recurring basis

R$ 270 million in productivity gains captured by March 2006

R$ million / year

270218

420

360

+ 24%

Target by 1Q06

Target by 2006

Target by 2007

Achieved by 1Q06

2727

Politeno’s AcquisitionOne step forward in the consolidation of the Brazilian petrochemical industry

Politeno’s AcquisitionOne step forward in the consolidation of the Brazilian petrochemical industry

Polyethylene Producer (PE) based in Camaçari – State of BahiaR$ 1 billion in Revenues in 200516% market-share in PE2002 National Quality Award Winner

320 K tons of PE production in 2005Products with leading quality in numerous segmentsHighly skilled staff with excellent operational and technical know-howRecognized competent technical assistance

A complementary portfolio of productsSolid relationship with the customer base in the Northeast of BrazilDynamic business culture, focused on customers, quality and resultsExcellence in operations and processes

Profile

Tangible Advantages

Intangible Advantages

Source: Braskem

2828

Growth and Competitiveness New strategic internationalization opportunitiesGrowth and Competitiveness New strategic internationalization opportunities

* To be presented to the Board of Directors

MOU signed with Pequiven (April, 2006). Detailing should be concluded in 6 months;

Estimated investments between US$ 1.5 and US$ 2.5 billion;

1.2 million tons/year natural gas-based cracker, integrated with the production of polyethylene and other second generation products.

““JoseJose”” Olefins Complex * Olefins Complex *

The opportunities already announced in Venezuela are still under analysis

PP: El Tablazo, Venezuela: 400.000 tons/year, also in partnership with Pequiven*

In light of the last developments in Bolivia, the studies for the construction of a petrochemical complex in that country are temporarily on hold

Brazil / BoliviaBrazil / Bolivia

2929

Share Buy-Back ProgramAn excellent investment for BraskemShare Buy-Back ProgramAn excellent investment for Braskem

Source: Braskem

Braskem has announced the implementation of a buy-back program to repurchase common and class “A” preferred shares;

Repurchased shares are initially to be held in treasury, and may be subsequently resold or cancelled;

Deadline for completion of the program is 6 months;

Up to 1,400,495 common shares (7.1% of free-float) and up to 13,896,133 class “A” preferred shares (8.25% of free-float)

Authorized brokerage firms: Credit Suisse, Itaú, UBS, Hedging-Griffoand Ágora Senior.

3030

An Unique Investment OpportunityAn Unique Investment Opportunity

Market leadership in the region

Consistent operational performance

Solid financial structure

Ongoing competitive improvements: and

Structural market growth opportunities in the region

Greenfield projects in the region based upon access to competitive raw materials

Innovation and technology as value driver

100% Tag Along to all shareholders

High Standards of Corporate GovernanceHigh Standards of Corporate Governance

May, 2006

José Marcos TreigerHead of Investor Relations

Individual Investor Meeting