2. 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 they are
made (September 30, 2007), 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.
2
3. Braskem: 3Q07 Highlights
Good Operating Performance coupled with advances in the Consolidation of the
Southern Complex
• Operating Performance
– Historical records of resins domestic sales volume and production volume on a
quarterly basis
– Resins market share increased from 51% in 2Q07 to 54% in the 3Q07;
– 18% reduction in General and Administrative Expenses;
– EBITDA of R$ 755 million, with EBITDA margin of 16.3%;
– Net Income reaches R$ 132 million;
• Consolidation of the Southern Petrochemical Complex
– Successful offer for Copesul shares
• 98.6% acceptance from shareholders registered to participate at the Offer
• Delisting was authorized by CVM;
• Redemption of the remaining shares will be decided in an Extraordinary Shareholders
Meeting of Copesul;
– Tag Along Offer to common shareholders of the Ipiranga Group
• The Offer was held in October and 82% of the shares of RPI and 77% of the shares of DPPI
were acquired;
• Offer for CBPI shareholders to be held in November;
• Green Polyethylene
– Decision to invest in a 200 thousand ton Unit of ethylene from ethanol from sugar
cane to start-up in 2009.
3
4. Braskem
Record resins production and high capacity utilization rates
Capacity Utilization Rate %
Ethylene pp PE PVC
104% 97%
96% 95%
93% 94% 90% 92% 92% 89%
87% 88%
3Q06 2Q07 3Q07 3Q06 2Q07 3Q07 3Q06 2Q07 3Q07 3Q06 2Q07 3Q07
Resins Production Kton
2,121
2,049
714 Historical record of
710
+3.5% quarterly resins production
+0.6%
in the 3Q07 => 714,000 tons
9M06 9M07 3Q06 3Q07
Source: Braskem 4
5. Braskem
Strengthening of our market leadership
Historical record of quarterly resins sales in Brazil => 551,000 tons
Domestic Sales 3Q07 x 2Q07 % Resins Market Share – 3Q07
+12%
Others
+8%
+6% 32%
2% 54%
+1%
14%
Imports
Braskem Domestic
PE PP PVC Resins Market
*Domestic Sales + Imports
Source: Braskem / Abiquim 5
6. Braskem: EBITDA Evolution 3Q07 x 3Q06
Commercial strategy minimizes impact of both naphtha price increases and
exchange rate
R$ million
Foreign Exchange
344 impact on costs
Foreign
Exchange
(566)
impact on
revenue
387 61
795 (222)
(182) 755
(66)
(18)
Raw Fixed
3Q06 Prices Volume Exchange
Costs/
Others 3Q07
Rates Materials
SG&A
Source: Braskem 6
7. Braskem: EBITDA Evolution 3Q07 x 3Q06
Commercial strategy minimizes impact of both naphtha price increases and
exchange rate
R$ million
Foreign Exchange
74 impact on costs
Foreign
Exchange
(159)
27 impact on
810 * 167
revenue
(138) 755
(85) (24)
(2)
Fixed Costs / Raw Exchange
2Q07* Prices
Rates
Volume Others 3Q07
SG&A Materials
* Excludes R$ 111 milllion non-recurring revenue incurred in 2Q07
Source: Braskem 7
8. Debt Profile
Amortization schedule compatible with cash generation and acquisition
in process
TJLP
In million of R$ (09/30/2007) CDI
Fixed 7%
18% Net Debt / EBITDA LTM
Gross Debt: 6,819 11%
Net Debt: 5,004 1.49
Trade Finance 1.44
21%
Average Maturity: 13 years
-3%
US$
1,815 Cash 43%
US$
64% Jun Sep
07 07
750
750
14% 14%
14%
12%
10% 11% 10%
10%
1,065
963* 945 917
802 4%
695 669 741 782
305
09/30/07 2007 2008 2009 2010 2011 / 2013 / 2015 / 2017 / 2019 /
Invested in R$ 2012 2014 2016 2018 Perpetual
invested in US$ * Includes R$ 770 million from the bridge loan for the acquision of Grupo Ipiranga petrochemical assets
Source: Braskem 8
9. Braskem: Economic and Financial Performance
Operating performance and improved financial results leverage Net Income
R$ million
3Q07 3Q06 Chg. % 9M07 9M06 Chg. %
Main Economic Indicators
(A) (B) (A)/(B) (C) (D) (C)/(D)
Net Revenue
k t Revenue
Net 4,623 4,724 -2% 14,016 12,746 10%
EBITDA 755 795 -5% 2,529 2,085 21%
EBITDA Margin 16.3% 16.8% +0.5 pp 18.0% 16.4% +1.6 pp
Net Financial Result (68) (396) -83% (231) (753) -69%
Net Income 132 (54) - 541 38 1,331%
Source: Braskem 9
10. Acquisition of Ipiranga Group Petrochemical Assets
Potential Synergies
SYNERGIES OF US$ 1.1 BILLION IN NET PRESENT VALUE
US$ million
73 58 1,147
112
228
267
409
Total
Financing Industrial Commercial Supply Chain Logistics Others Synergies
Source: Braskem 10
11. Earnings Conference Call – 3Q07
José Carlos Grubisich Carlos Fadigas
Visit our website: www.braskem.com.br/ir
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