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 (December 31, 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.
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3. Braskem: 2007 Highlights
• Consolidation of the Brazilian Petrochemical Industry
– Acquisition of petrochemical assets of Ipiranga Group and Copesul
– Delisting of Copesul and cancellation of its registration as publicly-held
company
– Investment Agreement with Petrobras
• Operating and Financial Performance
– 10% growth in the Brazilian resins market (PE, PP and PVC)
– Record resins production and sales in 2007
– Gross revenue reaches R$ 24 billion (US$ 12,3 billion)
– EBITDA of R$ 3.2 billion (US$ 1.6 billion)
– Net Income before minority interest is nearly R$ 1 billion
– Net income after minority interest reaches R$ 568 million
• Dividend Payment of R$ 278.5 million
3
4. Braskem: 2007 Highlights
• Braskem rating upgraded in global scale
– S&P raises rating and Fitch upgrades outlook for Braskem. Moody’s
initiates rating
– Braskem is 1 notch from Investment Grade
• Petroquímica Paulínia operations startup in March 2008
• Growth projects move forward
– Venezuela (450 Kton of polypropylene and 1,100 Kton of polyethylene)
• Joint Ventures created
• Approval of initial investment of US$ 90 million throughout 2008-2009
period
• Innovation & Technology
– In 2007, certification of the first Green Polyethylene in the world – from
sugarcane ethanol – Annual capacity of 200 kton
– Conversion of MTBE units into ETBE units from ethanol
4
5. Braskem:
Record resins production and high capacity utilization rates
Utilization Rates %
Ethylene 99%
pp PE PVC
95% 96% 94%
94% 92% 94%
93% 93%
88% 89%
86%
4Q06 3Q07 4Q07 4Q06 3Q07 4Q07 4Q06 3Q07 4Q07 4Q06 3Q07 4Q07
Resins Production Kton
2,824
2,740
702 Record annual
691
+3.1% production in 2007
+1.6%
=> 2,824 Kton
2006 2007 4Q06 4Q07
Source: Braskem
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7. Braskem:
Improvement in key indicators
Gross Revenue R$ million Net Revenue R$ million Exports US$ million
23.870 18,825 2,311
21,550 16,969 2,065
+11% +11% +12%
2006 2007 2006 2007 2006 2007
EBITDA R$ million Income before Minor. Interests R$ million Income after Minor. Interests R$ milhões
3,177
957
3,023
568
564
+5%
+70%
117
+385%
2006 2007 2006 2007 2006 2007
Source: Braskem 7
8. Braskem: EBITDA Evolution
Commercial strategy minimizes impact of both Naphtha price increases
and Exchange Rate
R$ million
Foreign Exchange
198 impact on costs
Foreign
412 Exchange
(317) impact on
revenue
755
(335)
648
(119) (34) (28) (3)
3Q07 Feedstocks Fixed 4Q07
Prices Exchange Volume Others
costs/
Rate
SG&A
Source: Braskem
8
9. Braskem: Financial Performance
Income before minority interest was approximately R$ 1 billion
R$ million
4Q07 4Q06 Chg % 2007 2006 Chg %
Main Financial Indicators
(A) (B) (A)/(B) (C) (D) (C)/(D)
Net Revenue 4,809 4,223 14% 18,825 16,969 11%
EBITDA 648 938 -31% 3,177 3,023 5%
EBITDA Margin 13.5% 22.2% -8.7 pp 16.9% 17.8% -0.9 pp
Net Financial Result (54) (260) -79% (284) (1,013) -72%
Net Income before Minority Interest 25 208 -88% 957 564 70%
Net Income 27 79 -66% 568 117 385%
Source: Braskem
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10. Braskem:
Debt maturity extension is a priority
R$ Million (12/31/07) US$
71%
US$ - Non Trade
Gross Debt: 8,382 Finance
36%
Net Debt: 6,123
US$ - Trade Finance
Average Maturity: 11 years 35% TJLP
8%
CDI
Pré 15%
6%
Cash & Cash Equivalents 31%
2,259
892
1,282
14%
11%
10%
1,702* 8% 9% 7%
6% 4%
1,180
977 895
679 805 752
497 360 620
12/31/07 2008 2009 2010 2011 2012 / 2014 / 2016 / 2018 / Perpetual
Invested in R$ 2013 2015 2017 2019
Invested in US$
•Includes R$ 1.7 billion from the bridge loan for the acquisition of Grupo Ipiranga petrochemical assets
Source: Braskem 10
11. Braskem:
Leverage reduced by acquisition combined to improved rating
Braskem Rating
Net Debt / EBITDA LTM * (x)
• Moody’s initiates rating with
Ba1 - stable
2.72
• Standard & Poors raises rating
2.20
1.93 to BB+ - stable
1.44 • Fitch upgrades outlook to
34% positive
Conclusion of
Dec 06 Sep 07 Dec 07 Ipiranga
Acquisition -
Estimate
Braskem is 1 notch
from Investment Grade
LTM – Last Twelve Months
Source: Braskem / Rating Agencies 11
12. Braskem:
Operating investments surpass R$ 1.3 billion
R$ million
1,344 1,354*
351 Capacity Increases
238
Equipment Replacement
327 227
HSE 162
130
Technology 32
62
197
120 Productivity
61
60 Information System
Maintenance 355
263
31 Others 82
2007 2008
* Does not include investment of US$ 90 million in Venezuela
Source: Braskem 12
13. New Share Buyback Program
Program size is US$ 150 million*
• Proposed the cancellation of 16,594 thousand shares held in treasury,
in the amount of R$ 244 million
• Decided the new buyback program for preferred class A shares (PNA)
• Bought back shares will be firstly held in treasury and posteriorly sold
(sale or exchange) or cancelled
• Program is expected to be concluded in 12 months
• Investment to fully implement the program is estimated at R$ 252
million (US$ 150 million)
(*) Braskem preferred share (BRKM5) price on 02/15/2008
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14. Braskem: 2008 Outlook
Global petrochemical player
• Operating and Financial Performance
– Domestic resins market growth ranging from 8% to 10% in 2008
– Resins market leadership
– Reduction in fixed costs and expenses – impact of R$ 100 million from 2008 on
– Strong commitment with profitability in domestic and external markets
• Petroquímica Paulínia operations startup (PP)
• Growth Projects
– Venezuela
• Progress in studies and presentation of PP project to Braskem and Pequiven Boards
of Directors
• Innovation and Technology
– Approval of investments for the construction of Green PE Unit, with annual capacity of
200 Kton
• Consolidation of the Brazilian Petrochemical Industry
– Conclusion of Copesul and Ipiranga Group petrochemical assets acquisitions
– Implementation of the Investment Agreement with Petrobras
– Capture of Synergies amounting to US$ 1.1 billion in NPV
Social and Environmental Responsibility
14
15. 4Q07 Results Conference Call
José Carlos Grubisich Carlos Fadigas
Visit our website: www.braskem.com.br/ri
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