2. Forward-looking Statements
This presentation contains forward-looking statements. These statements do not
represent historical fact, but rather reflect the beliefs and expectations of
Braskem’s management. The words “anticipate”, “wish”, “expect”, “estimate”,
“intend”, “forecast”, “plan”, “predict”, “project”, “target” and similar words
are intended to identify these statements. Although Braskem believes that the
expectations and assumptions reflected by these forward-looking statements are
reasonable and based on information currently available to management,
Braskem cannot guarantee future results or events.
The forward-looking statements in this presentation are valid only on the date
they are made (September 30, 2009) and the Company does not assume any
obligation to update them in light of new information or future developments
Braskem is not responsible for any transaction or investment decision taken
based on the information in this presentation.
2
3. Global Scenario
• 3Q09 was marked by a recovery in resin and petrochemical prices from 2Q09:
- Restrictions on capacity utilization rates and operational problems
- Stronger demand and higher naphtha prices
• This upward price trend was reversed in September due to:
- Lower raw material prices
- New capacity coming on line, especially in Asia
- Seasonal contraction of Chinese demand and destocking trend
• Continued depreciation in the US dollar and higher investment in commodities,
which have pressured naphtha and oil prices, bringing reduction for resin spreads
in 4Q09
• New capacity coming on line and still-depressed demand should prolong the down
cycle until 2011
• Uncertainty persists regarding the extent of the global economic recovery: the U.S.
shows slight signs of recovery while developing countries register positive growth
Source: Braskem / CMAI 3
4. Regional Scenario
• Braskem plants are operating at full capacity
• Robust recovery in domestic demand in 3Q09 and favorable global scenario supported
price increases
- Recovery of the construction sector and signs of better performance in the
agribusiness sector
• Economic performance expected to keep domestic demand strong until November
• Braskem sales outperform domestic market:
- Domestic resin sales up 10% versus 2Q09, while domestic demand grew 9%
• Net Revenue of R$4.0 billion, up 10% on 2Q09, driven by recoveries in domestic sales
and in local and international prices
• EBITDA grows 48% to R$838 million with 20.7% margin, up 5.4 p.p. on 2Q09.
Year to date, EBITDA already totals R$1.9 billion.
• Program to cut fixed costs generated savings of R$98 million in G&A expenses for
9M09
Sources: Braskem 4
5. Brazilian market expands 9%, reflecting
economic recovery
Domestic Sales in 3Q09 vs. 2Q09 % Resins Market Share in 3Q09
Imports
17%
15%
20%
10% 9%
53%
3%
27%
Others
PE PP PVC Total Brazilian
Resins Market *
* Braskem estimates: Domestic sales + Imports
Source: Braskem 5
6. EBITDA
Higher domestic prices and volumes fully offset BRL
appreciation and higher raw material costs
R$ million
FX Impact on
274 Costs
FX Impact
on Revenue (445)
110
745
(252)
(117) 838
(171)
566 (43)
EBITDA Price Volume Raw Other FX Others EBITDA
2Q09 Material Variable 3Q09
Costs
Source: Braskem 6
7. EBITDA
Savings in COGS, impact from FX gains and higher volumes
fully offset lower resin prices
R$ million
FX Impact
605 on Revenue
FX Impact
(457)
on Costs
142
148
607
1,300
726
838
(2,068) (17)
EBITDA Raw Other FX Volume Price Others EBITDA
3Q08 Material Variable 3Q09
Costs
Source: Braskem 7
8. Comfortable cash position covers
2 years of debt amortizations
R$ Million (9/30/09)
Gross Debt: 9,844
Net Debt: 6,687 Net Debt / EBITDA (x) R$ Net Debt / EBITDA (x) US$
Average Term: 9.75 years
65% of debt pegged to USD 3.16 -13%
2.74 3.25 3.21
3,157
1,296 Jun 09 Sep 09 Jun 09 Sep 09
PIFCO 17%
10% 13% 13%
12% 12%
192 9%
1,861 8%
1,644
1,254 6% 1,250
366 1,202 1,129
1,012 889
386 563
09/30/09 2009 2010 2011 2012 2013 2014/ 2016/ 2018/ 2020 onwards
2015 2017 2019
In US$
Value related to the loan granted by Petrobras subsidiary. R$366
In R$ million has been renegotiated for Nov/09 and R$192 million for Jan/10.
Source: Braskem8
9. Management’s main priorities
• Continued strengthening of long-term relationship with Clients
• Prioritizing financial health and liquidity
• Productivity Program: cost reductions
• Support the sustainability of Brazil’s petrochemical chain
- dollar depreciation
- higher taxes in India, China, USA and Europe
- instability of North American economy recovery
• Construction of Green PE plant
• Projects in Latin America: competitive feedstock
• Analysis of opportunities brought by crisis: selective acquisitions
in North America
Greater operational and financial strength
9
