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Meeting with Investors Rosana Avolio October 18 th , 2016

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Page 1: Braskem

Meeting with Investors

Rosana AvolioOctober 18th, 2016

Page 2: Braskem

Disclaimer and forward-looking statements

This presentation contains forward-looking statements. These forward-looking

statements are not solely historical data, but rather reflect the targets and

expectations of Braskem’s management. The terms “anticipate,” “believe,”

“expect,” “foresee,” “intend,” “plan,” “estimate,” “project,” “aim” and similar terms

are used to indicate forward-looking statements. Although we believe these

forward-looking statements are based on reasonable assumptions, they are

subject to various risks and uncertainties and are prepared using the information

currently available to Braskem.

This presentation was up-to-date as of June 30, 2016, and Braskem does not

assume any obligation to update it in light of new information or future

developments.

Braskem undertakes no liability for transactions or investment decisions made

based on the information in this presentation.

Page 3: Braskem

BRASKEM

Agenda

Business Model / Strategy Drivers

Risks and Opportunities

Sustainable Development

Conclusion

Page 4: Braskem

Leading presence in the Brazilian market: only integratedpetrochemical company in 1st and 2nd generation

Key player of thermoplastic resins (PE+PP+PVC) in the Americasand largest Biopolymer Producer of the World

Largest PP producer in USA

29 units in Brasil, 5 in EUA, 2 in Germany and 4 inMexico:

Braskem

Summary 2015:

Net revenue: R$47.3 billion / US$14.3 billion

EBITDA: R$9.4 billion / US$2.8 billion

EBITDA margin: 19.8%

Net debt: R$21.1 bi / US$5.4 billion

Leverage (net debt/EBITDA): 2.23x (R$) / 1.91x (US$)

Activities divided into 6 segments:

1) UNIB (1st generation): 3.9 MM ton Ethylene/ 1.5 MM tonpropylene

2) UNPOL (PE and PP): 3.0 MM ton PE / 1.8 MM ton PP

3) Vinyls (PVC and chlor-alkali): 710 kt PVC / 539 kt Soda

4) quantiQ (chemicals distribution): more than 1,500 products

5) USA and Europe (PP): 2.0 MM ton PP

6) Mexico (PE): 1.050 MM ton PE

Industrial Assets

1 gas cracker 1 PP 1 PE

1 hybrid cracker 2 PP 3 PE

1 PP Pennsylvania

1 naphtha cracker 1 ethanol cracker 5 PE 2 PP

2 PVC 1 chlor-alkali 1 naphtha cracker

4 PE 1 PP 1 PVC 1 chlor-alkali

2 PP (Wesseling

andSchkopau)

3 PP Texas

1 PP W.Virginia

Listed in 3 stock exchanges: BM&FBovespa, NYSE and Latibex- 100% tag along

Investment Grade by S&P e Fitch

Page 5: Braskem

Business Model - Brazil

Solid business model based on the competitive integration of the value chain

Raw material

Naphtha

Ethanol

Ethane

Propane

Basic Petrochemicals Unit

Ethene

Propylene

Benzene

Toluene

Paraxylene

ButadieneCumene

Ethene and Propylene

Clients

Polyolefins and Vinyls Unit

Integrated Petrochemical

Polyethylene

Polypropylene

PVC

Green Polyethylene

Page 6: Braskem

Business Model – US & Europe

Propylene

Polypropylene

Diversified sources of raw materials:

Refineries PDH Crackers

Clients

Page 7: Braskem

Business Model – Mexico

Gás

Ethane

Ethylene

HDPE

HDPE

LDPE

Clients

Page 8: Braskem

Total common shares = 451,668,652

Total class “A” preferred shares = 345,002,978

Total class “B” preferred shares = 593,618

Total Shares = 797,265,248

Odebrecht and Petrobras corporate relations regarding Braskem are regulated by a Shareholders’ Agreement

Odebrecht appoints Braskem’s Chairman of the Board, while Petrobras appoints its Vice Chairman

¹Include shares held in treasury

Source: Shareholders’ Agreement of Braskem S.A., BM&FBOVESPA – Data retrieved in 06/30/2016

Ownership Structure

Page 9: Braskem

Corporate Governance Structure SH

AREH

OLD

ERS

STRATEGY AND COMMUNICATION COMMITTEE

PEOPLE AND ORGANIZATION COMMITTEE

FINANCIAL AND INVESTMENT COMMITTEE

COMPLIANCE COMMITTEE

SUPPORT FROM CORPORATE GOVERNANCE AREA

CLIE

NTS

BOARD OF DIRECTORS

FISCAL COUNCIL

INDEPENDENT AUDITORS

BUSINESS LEADER

PERMANENT BOARD OF DIRECTORS SUPPORT COMMITTEE

Corporate Governance at Braskem is based on ethics, transparency and respect for Clients, Team

Members, Shareholders, Suppliers and all other audiences with whom the Company interacts.

CHIEF COMPLIANCE OFFICER

Page 10: Braskem

Strategy Drivers

10BRASKEM / Relatório Anual / 11

PURPOSE Improve people's lives by creating sustainable solutions through chemicals and plastics

‘VALUES

(TEO) Trust in people Client satisfaction Partnership among team members

STRATEGY

PERPETUATE

GROW

SURVIVE

• Focus on the client and the market

• Competitive raw material and energy

• Productivity and operacional efficiency

• Geographic diversity

• Serve the Brazilian market

• Develop new paths using renewable

raw material.

• Technology

• People and Organization

• Sustentability and Innovation

Reinvestments Self-development of people Return for shareholders

Page 11: Braskem

BRASKEM

Agenda

Business Model/ Strategy Drivers

Risks and Opportunities

Sustainable Development

Conclusion

Page 12: Braskem

Diversification through competitive raw material: current feedstock profile with higher exposure based on

naphtha that presents higher costs and that could create exposure to carbon pricing mechanisms.

Acess to competitive feedstock

Raw Material Profile

Recent investments to diversify feedstock:

1. Braskem Idesa complex: 1,05kt PE production using 100% ethane as feedstock.

2. Feedstock flexibility project in Bahia: Braskem is investing R$ 380 million to enable the cracker in Bahia to use ethane for up to 15% of its feedstock. The project is scheduled to start operating in the second half of 2017.

Page 13: Braskem

Brazilian Market Challenges

Brazilian Market of Resins (kton):

2015

2,372

5,385

-7.6%

4,926

2014

5,331

1H162013

Good operational performance, exports and

international units results : record EBITDA

even in a year of an unfavorable Brazilian

economy (2015 GDP: - 3,5%)

Exports:

862 778 680921

520

415312 388

386

288

+22%

2015

1,307

2014

1,068

2013

1,090

2012

1,277

1H16

808

PE

PP

Program of costs reduction:

Competitive Energy: Chesf (valid until 2037 withcontribution to a fund to develop energy sector)

Client support:• Pic Plast• Braskem Visio

Page 14: Braskem

Allegations

• In early March 2015, in connection with the operation by Brazilian Federal Police called Operation Car Wash (Lava Jato),

statements made by defendants against former executives were mentioned in allegations asserting that improper payments were

made in connection with certain feedstock supply agreements entered into with Petrobras.

• In light of said facts, the Company's Management and Board of Directors immediately approved the engagement of law firms

States and Brazil to conduct an independent internal investigation into the allegations mentioned above. Through said Expert

Firms, Braskem voluntarily contacted the agencies regulating the capital markets in Brazil and the United States, as well as the

U.S. Department of Justice – DoJ, to advise them of the launch of the Investigation.

• The Expert Firms report directly to the Board of Directors of the Company and to the applicable authorities. The Company,

through the Expert Firms, has maintained frequent contact and cooperated with said authorities.

Material Fact (October 3th):

• Braskem has started discussions with DoJ and SEC, that the Company hopes will lead to formal settlement negotiations and theresolution of the allegations of misconduct. In addition to the conversations with DoJ and SEC, the Company intends to startsimultaneous discussions in Brazil with the same purpose.

• The discussions are being conducted by the Executive Officers of the Company, and the independent investigators, in cooperationwith the competent authorities, shall continue to investigate with the purpose of verifying the accusations of misconduct object ofthe potential settlement.

• The Company believes that any possible settlement with the authorities may result in relevant monetary obligations, in addition toother possible sanctions and/or non-monetary obligations. Due to the nature of this kind of negotiation, it is not possible toestimate its duration or its final result.

Page 15: Braskem

BRASKEM

Agenda

Business Model/ Strategy Drivers

Risks and Opportunities

Sustainable Development

Conclusion

Page 16: Braskem

Materiality Matrix

14

Page 17: Braskem

2015 Results

14

9,4EBITDA Record

Billion

R$

External Funding

R$11

6,1Loss Avoided

Million

R$

13,4Water Saving

Million

R$

116Energy Saving

Million

R$ 16%

Reduction CO2

Scope 1+2 Emissions

15New Resins Revenue

84% Applications SDG Linked

%

Listed In

Sustainable Indexes

2,78Green PE

Life Cycle Analysis

tCO2/t

100Recycled Resin

8 projects

tons/month

Million

Page 18: Braskem

BRASKEM

Agenda

Business Model/ Strategy Drivers

Risks and Opportunities

Sustainable Development

Conclusion

Page 19: Braskem

Braskem PerformanceRenov. Contrato nafta Aprovação

impeachment/ câmbio apreciado

-

5

10

15

20

25

BRKM5*

em R$

Release 2014

Allegations

Release 1TQ5

AgreementCHESF

Release2Q15

F/X ratedepreciation

Release 3Q16

PTB Divest plan

Release2015

Brexit

Impeachment/F/X rate apreciation

8,20x 7,75x 7,82x 7,55x

5,45x4,53x

3,56x4,07x

EAST

MA

N

MEX

ICH

EM

DO

W

SOLV

AY

LYO

ND

ELL

BA

SELL

WES

TLA

KE

BR

ASK

EM(U

S$)

BR

ASK

EM(R

$)

Peers Average (US$) 6,88x

EV/EBITDA – June 2016:

Braskem EV / EBITDA in dollars is discounted

by 48% when compared to the

average of its peers.

Page 20: Braskem

SO WHY INVEST IN BRASKEM?

Solid company investing to ensure its long term strategy through geographic, marketand feedstock diversification, leading the way on renewables.

Responsible in its management of direct and indirect social and environmental impacts.

Focused on developing sustainable products, working with its value chain and society.

Significant market expansion prospect of plastics which can make a meaningfulcontribution to sustainable development and reducing environmental impact.

Page 21: Braskem

Thank you!