presentation to investors itaú -

Presentation to Presentation to

Investors

Bernardo Gradin

Presidente

Disclaimer

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

statements are not 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 were prepared using the

2

subject to various risks and uncertainties and were prepared using the

information currently available to Braskem.

This presentation was updated on March 31, 2010, and Braskem does not assume

any responsibility for updating it in light of new information and/or events.

Braskem is not liable for any investment decisions taken based on the

information contained in this presentation.

Agenda

� Braskem

� A global player

� Acquisitions: opportunities and challenges

� Project pipeline: growth with value accretion

� Braskem consolidated

3

� The petrochemical industry

� Final considerations

Agenda

� Braskem

� A global player




4



A leading Brazilian company going global

2010 – a milestone in Braskem’s history: becoming a world-class player and advancing its strategy to become one of the world’s five largest global

petrochemical companies in terms of enterprise value

Solid ownership structure

Firmly committed shareholders;

Injection of R$3.5 billion by Odebrecht and Petrobras as an acquisition pre-condition;

BNDES maintained its interest by contributing

Acquisition of Quattor and Sunoco

Creation of a global player;

Diversification of raw materials;

Foothold in the U.S. market: one of the largest consumer markets for thermoplastic resins; BNDES maintained its interest by contributing

R$240 million in capital;

Braskem is the priority vehicle for petrochemical investments in Brazil;

Professional management;

Maintenance of Governance standards.

consumer markets for thermoplastic resins;

Value accretion through synergies.

Financial solidity

Solid operating results;

Strategic debt profile;

Prepared for opportunities arising from a potential downcycle of the petrochemical industry.

Competitive projects

Leader in all new sources of competitive raw materials in Latin America, comparable to the conditions in Middle East;

Geographic and raw material diversification;

Protection of the Brazilian market;

Development of high value added products (green polyethylene).

5

2020

Polialden

Ipiranga, Copesul and Paulínia

Petroquímica Triunfo

Acquisitions Quattor + Sunoco

Leader in Latin America

Leader in the Americas

2010Politeno

54% capacity increase

Track record of success with clear objectives

80% capacity increase

Acquisitions

Organic Growth

Resins Capacity (kton/y)

1,821

520

2,341

2,185

1,410

3,595

2,185

4,275

6,460

20022006

2007

Polialden

To be one of the world’s

top 5 petrochemical

companies in terms of

enterprise value

6

2.72x2.72x 3.73x3.73x 3.46x3.46x

Net Debt/EBITDA (R$)

2.67x2.67x

Aft

er

R$3.7

4 b

i capital in

cre

ase

FX devaluation2008 Crisis

2006

20032004

2005

20082009

2010OPP Trikem

Politeno

3.12x3.12x1Q10

Source: Braskem

Become leader inthermoplastic resinsin Latin America

2,549

3,177

2,418

3,150 3,496

Consistent growth

CAGR: 13%

EBITDA (R$ million)

10,212CAGR: 19%

Nominal Capacity (kton)19.1%

19.3%

23.1%

18.0%

14.1%

16.9%

13.5%

14.4%14.7%

Resins

Ethylene

2002 2003 2004 2005 2006 2007 2008 2009 LTM

2010

1,335

1,777

2,549

2,090 1,661

2,418

Supported by higher production, market leadership, successful sales policies and industry consolidation

7 Source: Braskem 1 Pro-forma figures for 2009: Braskem + Quattor + Sunoco

2002 2003 2004 2005 2006 2007 2008 2009

2,965 3,045 3,145 3,190 3,621

5,5515,921

8.4 11.2 15.3 9.9 10.1 13.4 11.9 13.1 19.7EV

(R$ bi)

6.3x 6.3x 6.0x 4.7x 6.1x 4.2x 4.9x 4.2x 5.6xEV/

EBITDA

1,626

1,337

1,580

1,846

Consistent growth

CAGR: 19%

EBITDA (US$ million)

19.1%19.3%

23.1%

18.0%

14.1%

16.9%

13.5%

14.4%14.7%

10,212CAGR: 19%

Nominal Capacity (kton)

Resins

Ethylene

2002 2003 2004 2005 2006 2007 2008 2009 LTM

2010

457 581

871 851 764

1,337

EV/

EBITDA

EV

(US$ bi)

8Source: Braskem 1 Pro-forma figures for 2009: Braskem + Quattor + Sunoco

2.4 3.9 5.8 4.2 4.7 7.6 5.1 7.5 11.0

5.2x 6.7x 6.6x 5.0x 6.2x 4.6x 3.8x 4.8x 5.9x

2002 2003 2004 2005 2006 2007 2008 2009

2,965 3,045 3,145 3,190 3,621

5,5515,921

Supported by higher production, market leadership, successful sales policies and industry consolidation

Strong cash generation and competitive margins

� Braskem positions itself as a consolidator of the global petrochemical industry

� Opportunistic acquisitions during the economic crisis

� Strong cash flow

� Disciplined in reducing fixed costs

Key Financial Key Financial Indicators (R$ ‘000)*Indicators (R$ ‘000)*

1Q10 1Q10 (A)(A)

4Q094Q09(B) (B)

1Q091Q09(C)(C)

% % (A)/(B)(A)/(B)

% % (A)/(C)(A)/(C)

Sales Revenue 6,245 5,960 4,307 5 45

EBITDA 903 751 545 20 66

EBITDA Margin 14.5% 12.6% 12.6%1.9 p.p.

1.8 p.p.

9

COMPANYEBITDA

Margin 1Q10

SABIC 34,9%

MEXICHEM 21,5%

RELIANCE 15,2%

BRASKEM 14,5%

FORMOSA 13,9%

WESTLAKE 10,3%

DOW 10,1%

GEORGIA GULF 6,6%

� Disciplined in reducing fixed costs

� Renegotiation of raw material agreements since March 2009

� Growing productivity gains and operational excellence – already in the 1st quartile worldwide

� Notable improvement in HSE results since 2002

� Green polyethylene helping to reduce effects from GHGs

Source: Braskem, Bloomberg Pro-forma figures for 2009: Braskem + Quattor + Sunoco

Potential for margin gains through good operating practices.Braskem pre-acquisitions:16.3%

Quattor acquisition

Camaçari

MauáPaulínia

Duque de Caxias

PP HOMO/COPO (1979)Capacity: 115 ktyTechnology: Slurry Shell

Bahia Opportunities

� Asset concentration in Southeast (~70% Brazilian resin consumption);

� Optimization of logistics distribution related to reduction in external storage;

� Diversified RM matrix – balance between naphtha-natural gas;

� Joint administration of raw material agreements;

� Renegotiation of service and insurance

Cracker (2005)Capacity: 520 kty ethyleneTechnology: ABB Lummus –

ethane/propane

HDPE/LLDPE (2005)Capacity: 540 kty

Rio de Janeiro

Cracker (1972)Capacity: 700 kty ethylene*Technology: ABB Lummus

(naphtha)

LDPE/ EVA (1972)Capacity: 120 ktyTechnology: HP Autoclave

HDPE/ LDPE (2008)Capacity: 240 kty Technology: Slurry – Chevron Phillips

LDPE (1965)Capacity: 140 kty Technology: Tubular

PP HOMO/COPO (2003)Capacity: 450 ktyTechnology: Spheripol

Sao Paulo

Triunfo

Paulínia Caxias

10*200 kta expansion effectively coming online in 2010

� Renegotiation of service and insurance contracts;

� Unification of production and maintenance practices;

� Unification of Technology and Innovation centers;

� Reduction of working capital costs;

� Tax and logistical synergies;

� Organizational restructuring.

Challenges

� Stability of raw material supplies;

� Integration of cultures.

Capacity: 540 kty Technology: Gas phase - Unipol

Rio de Janeiro

PP HOMO/COPO (1992)Capacity: 310 ktyTechnology: Bulk – Lipp

Quattor - key indicators

SIMULATION 1Q10*

Utilization rate: 90%

R$ million 2009 1Q10

Operating rate (%) 2009 1Q10

Ethylene 68%(1) 74%(1)

PE 61% 67%

Operational Indicators

Financial Indicators

11

EBITDA: R$193

SIMULATION 1Q10*

*Assumptions

� Higher production = higher sales

� Average price 1Q10

� Excludes synergies

Net Revenue 4,772 1,233

EBITDA 534 109

Main impact on operational profit in 1Q10

� Limited operating rate

(1) Considering the 200 kty expansion

Outlook as of 2Q10

� Supply from Mauá complex normalized in May 2010;

� Petrobras’ commitment to normalize supply to enable Riopol to operate at full capacity by August 2010.

Corporate Governance post acquisition

� Odebrecht as the controlling shareholder, with all results fully consolidated,reinforcing Braskem’s condition as a publicly traded private company;

� Braskem executives entrusted with the Company’s management and business plan,approved by a simple majority of the Board of Directors;

� Sharing of strategic decisions, with consensus approval by Board of Directors, includingfor:

– divestments greater than 10% of long-term assets

– acquisitions greater than 30% of long-term assets

12

– acquisitions greater than 30% of long-term assets

� Investment decisions based on objective criteria for returns and profitability, such asproject IRR and NPV.

� Clear financial policy that stipulates the strict conditions, with derivatives used solelyfor hedging;

� Being the sole vehicle for petrochemicals investments gives Braskem the right to:

- Act as the leader for all investments identified by Petrobras that are of interest toBraskem;

- If not interested, the right to sell the products.

Braskem America (former Sunoco)

Marcus Hook, PA

R&T Center

Pittsburgh, PA

Neal, WV

Opportunities

� Global-scale, state-of-the-art assets –technology and age similar to Brazil’s polypropylene (PP) assets;

� Development of a global production base;

� Consolidation of industrial assets;

� Competitive costs for some 70% of raw materials;

13

La Porte, TX� 1 PP

Marcus Hook, PA� 1 PP

Neal, WV� 1 PP � Platform for greenfield projects in

Latin America.

Challenges

� Knowledge of North American distribution market;

� Add value to supplier ⇔ client chain (substitute distributor);

� Highly disperse market;

� Resumption in demand vs. uncertainty of economic recovery.

R$ million 2009 1Q10

Net Revenue 1,866 547

EBITDA 140 65*

Financial Indicators

* R$18 million non-recurring positive impact from inventory adjustments.

Agenda

� Braskem

� A global player




14



BRAZIL

Expansion with increased competitiveness

Green Ethylene

Operational start-up: 3Q10

� Physical progress – 75%

� Costs in line with budget

� Expected NPV ~US$180 million

15

PVC Expansion

Operational start-up : 1st half 2012

� Expansion of 200 kty in PVC capacity

� Investments of US$470 million

� Expected NPV ~US$450 million

� Support for Brazil’s infrastructure projects

Source: Braskem

Industrial Assets

New Projects

Projects with Petrobras

LATIN AMERICA

Expansion with increased competitiveness

Mexico: Ethylene XXI Project

Operational start-up: early 2015

� Partnership between Braskem (65%) and the Mexican group IDESA (35%) for the purchase of ethane from PEMEX

� Integrated project: 1 Mty of ethane and 1 Mty of PE

16

� Investment estimated at up to US$2.5 billion over 5 years

Venezuela: JV’s with Pequiven with Project Finance structure

Propilsur

Operational start-up: 2013

� 300 kty PP in Paranaguá complex

� Investment estimated at US$500 million

Industrial Assets

New Projects


Source: Braskem

Consolidated project pipeline

� Green PE(+ 200 kty ethylene)

� Ethylene XXI - Mexico(+ 1,000 kty ethylene and + 1,000 kta PE)

� Propilsur – Venezuela

� PeruProj. (+ 600 to 1,000 kty ethylene/PE)

� Polimerica – Venezuela(+ 1,300 kty ethylene and + 1,000 kty PE)

� Suape

17

� Resin Capacity CAGR for 2010-2015: +4.3%

� Diversification of raw materials and world-class assets

� Fiscal discipline

� Excellent track record of projects execution

2010 - 2012 2013 - 2015 Projects under evaluation

(+ 200 kty ethylene)

� PVC Expansion (+ 200 kty)

� Propilsur – Venezuela(+ 300 kty PP)

� Suape

� Comperj

Source: Braskem

Investments in 2010 total R$1.6 bi

2010 Estimated InvestmentsIn millions of R$

1,617

72

254

VenezuelaMexico

Green PE

18

10

360

56

317

462

52 35 72

Maintenance

BRASKEM

Venezuela

PVC Alagoas

QUATTOR

QUANTIQ / VARIENT

BRASKEM AMERICA

Operational

Industrial Assets

New Projects


Source: Braskem

Agenda

� Braskem

� A global player




19



Braskem consolidated

2009 LTM Mar/10R$ billion Braskem B + Q + S Braskem B + Q + S

Net Revenue 15.2 21.9 16.5 23.8

EBITDA 2.5 3.1 2.7 3.5

Net Debt/EBITDA 2.67x 3.46x 2.37x 3.12x

# Plants: 17 29 17 29

Financial Indicators:

Potential for margin gains

�Stabilization in raw material supplies;

�Margin equalization Braskem (16%) vs. Quattor (9%);

�Substitution of 1Q09 by 1Q10

1,995

3,035

1,090

1,965

510

510

PVC

PP

PE

20 Source: Braskem

3,595

6,46080% Capacity Increase

Listed on three stock exchanges: BM&FBovespa, NYSE and Latibex

Industrial Assets

# Plants: 17 29 17 29

R$ million (03/31/2010)

Gross Debt: 9,810

Net Debt: 6,500

Average Term: 9.7 years

Net Debt/EBITDA: 2.37x

Quattor + Sunoco Acquisition

R$ million (03/31/10)

Gross Debt: 17,176

Net Debt: 10,909



R$3.74 bi capital increase

65% of debt pegged to USD 44% of debt pegged to USD

R$ million (03/31/10)

Gross Debt: 14,066

Net Debt: 10,909



Funding operations in April and May

and scheduled payments

59% of debt pegged to USD

Braskem Cash: + 3,311

Quattor Cash: + 542

Braskem’s consolidated debt profile after debt restructuring

7001,456 1,060 1,416 1,057

491 101511

1,118267 623

478

622614

804

478

389

3,157 1,178

2,0781,674

2,371

1,735

1,222

289607

1,142

157

989623

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020

onwards

Braskem Quattor New debt Cash Net capital increase

Quattor Cash: + 542

Capital Increase: + 3,742

(-) UNIPAR Payment - (700)

(-) SUNOCO Payment - (630)

Bond Issuance (US$400 mi) + 712

SUNOCO, EPP and NCA fin. + 694

Debt Prepayment: - (4,514)

Cash = 3,157

21

3,157

Source: Braskem

-

BB+

BB

BB-

stable

RATINGRATING

Ba1

Ba2

Ba3

-

+BBB-Ba3

Jan/09

Mar/09

+May/09

Jan&Feb/10

Post-Acquisitions

Braskem: Ratings confirmed after acquisition

Investment Grade

The acquisitions:‣ Strengthened strategic positioning;‣ Increased # of plants, sites and geographic diversification;

Upgrade Conditions:‣ Maintenance of high liquidity (cash or equivalents -stand-by) above R$3 billion. Cash above R$3 billion sinceDec/2008.‣ Capitalization of Braskem as pre-condition foracquisition. Shareholder movements;‣ Successful integration with capture of synergies andincrease in cash generation;‣ Decrease in Net Debt/EBITDA ratio to 2.5x. In first post-acquisition quarter we already reduced this ratio from3.46x to 3.12x

22 Source: Braskem

Braskem Ratings (National Scale) Braskem Ratings (Global Scale)

S&P AA+ / Stable Outlook

Moody’s Aa2.br / Stable Outlook

Fitch AA / Stable Outlook

S&P BB+ / Stable Outlook

Moody’s Ba1 / Stable Outlook

Fitch BB+ / Stable Outlook

BB-

B+

Ba3

B1

2009 2010

‣ Increased # of plants, sites and geographic diversification;‣ Diversification of raw material mix;‣ More disciplined and less volatile domestic market ;‣ High governance standards;‣ Petrobras participation.

3.46x to 3.12x

Raw material matrixDiversification to compete globally

Raw Material Profile* (2009)

13%

18%

69%

24%

15%58%

3%

Braskem Post-Acquisitions* Braskem Post-Projects*

Implementation of Project Pipeline**

46%

14%

92%17%

56%

8%

37% 30%

23

�More balanced and diversified supply of raw materials

�Competitive natural gas price vs. international reference prices

(1) Ethane, Propane and HLR; (2) Naphtha and condensate*Based on resin-production capacity. Sunoco buys propane directly** Considering the Mexico Project and Green PE

Propane

�USGC reference to competitive prices

Natural Gas

� 100% Petrobras supply with competitive prices versus international prices

Ethanol

Naphtha / Condensate

� ~70% of naphtha supplied by Petrobras with competitive price formula

� 30% direct imports from various international suppliers

Quattor Sunoco Braskem

Liquid (2) Refinery propylene Gas (1)

Agenda

� Braskem

� A global player




24



75

8583

79 80

86

0

10,000

20,000

30,000

40,000

50,000

60,000

Europe N. America Asia M. East World Braskem

Overview of the world petrochemical cycle

Ethylene: projected utilization in 2010What did we learn in 2009?

� Plants with high operating costs were closed during the crisis

� Demand driven by emerging countries, primarily China

� Effective new capacity 50% below projections: delays, learning curve, lack of skilled labor, problems with raw material supply

2010-2014 Outlook

80 84

90

74

84

89

*

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2009 2010 2011 2012 2013 2014

MIDDLE EAST ASIA OTHERS

NORTH AMERICA W. EUROPE May2009 Forecast

Capacidade Operating rate 2010 (%)

Source: CMAI

� Uncompetitive assets shall be permanently shuttled down

� Restrictions on gas extraction linked to oil production (OPEC)

� ~3 million tons expected for 2010 should be postponed: Iran (Morvarid and Illam) and Saudi Arabia (Sharq and Saudi – Al Jubail)

� Demand growth over 6 million ton/year should exceed additional supply in 2011

� Higher domestic consumption in emerging countries like Brazil, China and India

� Industry consolidation increasing players’ competitiveness

25

K tAdditional capacity and closures announced

Estimated delay

2009 operating rate (%)

* Braskem:1Q10

Brazil’s macroeconomic outlook

Annual real GDP growth

• Brazil’s economy is still relatively closed, with exportscorresponding to 14% of GDP, distributed amongvarious trade partners.

• Strong external solvency ratings and floating exchangerate system curbed speculation against the BRL duringthe crisis.

• Brazil’s banking system is well capitalized and highlyregulated.

4,5%

3,5%

4,7%

6,1%

1,3%

-0,2%-0,2%

5,8%

4,4% 4,4% 4,6%

4,4% 4,3% 4,3%

5,2%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

26

Average monthly income (March 2002 = base 100)

regulated.

• Household consumption corresponds to 61% of GDP,while government consumption corresponds to 20%.GDP is highly influenced by consumer behavior, whichhas been driven by growth in average income levels.

• Brazil is still an unleveraged economy, but withgrowing access to credit (the ratio of available creditto GDP is currently 45% and is expected to increase to49% in 2010), which ultimately spurs consumption.

Real GDP On April 2010 On December 2009

Source: Santander

80

100

120

140

160

180

Rendimento MédioAverage Income

63

57

Brazil: Dynamic MarketStill-low per-capita consumption

Per-capita consumption of PE, PP and PVC (kg/person)

Brazil:

63

57

4141

28

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

PE PP PVC

11,1

16,616,215,414,513,612,5

22,221,920,2

18,018,717,517,816,1

22,7

9,6

27 * Compound annual growth rate Source: CMAI, IBGE, Abiquim, Braskem

Brazil:

5.4%CAGR

22,2

41

28

5%

13%6%

2%5%

Consumer driven Braskem’s domestic sales breakdown in 2009

RETAIL

CONSUMER GOODSAUTOMOTIVE

HYGIENE AND CLEANINGCOSMETICS AND PHARMACEUTICALS

4%

30%

5%

17%

3%

6%

4%4%1%

28 Source: Braskem / Abiquim

FOOD PACKAGING

CONSTRUCTION

AGRIBUSINESS

ELECTRIC AND ELECTRONIC

INDUSTRIAL

CHEMCIALS AND AGROCHEMICALSOTHER

INFRASTRUCTURE

Market development

BUBBLEDECK

Construction of light slabs using polypropylene spheres.

Project developed with Unipac and Toyota-Tsusho. Flooring that allows water permeability.

Substitutes concrete wells for a rotation-molded structure. Support from CNO and partners Asperbras, Fortlev and Brinquedos Bandeirante

Agro-machinery

Parts for tractors, harvesters and tools migrating to PE rotational molding.

29

CROSSWAVE

TRAVELING BLOCK

New washer molds, with PP cabinets (replacing steel) in final validation stage.

Substitution of asbestos by PP fibers with fiber-cement reinforcement.

FIBER-CEMENT

Manholes

Large Tanks

Substitution of fiberglass tanks for volumes greater than 2,000 l.

Plastic silos for grain storage. Partnership with Suzuki.

Silo Bags

Agenda

� Braskem

� A global player




30



0

5

10

15

20

25

30

35

jan-02 jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10

Pr/share BRKM5 Performance

B+Q+S (R$ billion) 1Q10 Itaú Multiple

EBITDA LTM 3.5 3.5 3.5

Market Capitalization 8.8 11.9 13.6

EV 19.7 22.8 24.5

EV/EBITDA 5.6x 6.5x 7.0x*

Price per share 11.3 15.3 17.4

Proj. NPV to 2012 > R$1 bi

Value added by

projects to share price

> R$1.3 /

share

+

Why Braskem?

R$ US$

� Largest thermoplastic resin producer in the Americas

� Leader of important projects in Latin America with

competitive raw materials

� Emerging consumer market with potential per-capita growth

as additional driver

� Above-peer profitability

� Access to one of the world’s largest consumer markets

following the U.S. acquisition

� Successful trajectory of organic growth and acquisitions

� Shareholders hold long-term view with strategic synergies

for growth and value creation

� Leader in green chemicals

� Huge potential for value creation

� EBITDA increase

� EV/EBITDA multiple below

peers’ multiple (7-8x)

projects to share price share

31

* Peer Multiple. Source: Bloomberg.

Presentation to

Investors

Bernardo Gradin

Presidente

presentation to investors itaú -

Economy & Finance

capital braskem

braskem net debtebitda

indicators r

consistent growthebitda

value accretionbraskem

petrochemical investments

ethylene cagr

abc ab ac braskem positions