1. Acquisition of
Sunoco
Chemicals
Bernardo Gradin
Carlos Fadigas
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. Transaction Overview
• On February 1, 2010 Braskem acquired 100% of the shares of
Sunoco Chemicals1, made up of the Sunoco Polypropylene Business
– 950 kty of PP.
• Braskem America, a wholly owned subsidiary of Braskem, S.A.
acquired the business for $350 million in cash, to be paid within 60
days.
• Sunoco Chemicals:
– 4th largest supplier of PP in North America
– 3 plants: La Porte - TX, Marcus Hook - PA and Neal - WV
– Research & Tech Center: Pittsburgh, PA
– Competitive margins
– Well-located and state-of-the-art facilities run by experienced
employees
1 The Phenol Business does not form part of this transaction 3
4. Benefits and Strategic Drivers
• Further internationalization of a world scale player
• Acquisition of upgraded and competitive assets with access to a
highly skilled management team and workforce
• Development of a base of global production in a market with further
industry consolidation opportunities
• Foothold in the U.S. enhancing market for greenfield projects in Latin
American
• Value creation
Adding Sunoco Chemicals to the Braskem group furthers our objective of
being among the top 5 global petrochemical companies in the world.
4
5. Polypropylene Market in the U.S.
• Polypropylene resins are one of the fastest-growing categories of
thermoplastic resins in the world
• SRI estimates PP consumption growth at 1.3 – 1.7 times US GDP
growth
• U.S. is the largest global consumer of PP at 12% of global
production
• 5 largest producers have over 60% of the market
• Producers out of the Gulf hub have feedstock competitive
advantage
• Sunoco is amongst the most competitive in the US PP industry
Source: UBS 5
6. Sunoco Chemicals Overview
• State-of-the-art R&T center and facilities operating SpheripolTM and UNIPOLTM
PP technologies
– Established industry reputation for providing high quality products and
services
– Superior safety record
• Serves a broad range of clients with top 10 customers accounting for 52% of
total sales volume
• Favorable cost position and feedstock integration
– Ability to access lower cost feedstock with 60% of total capacity located
outside US Gulf Coast
– Robust transportation infrastructure
• Flexible product mix including high margin products
• Strong management team and workforce
– Recent restructuring without material impact to the business
Source: Sunoco Inc 6
7. Braskem - # 1 Resin Producer in the
Americas, now with plants in the USA
Key Financials (2009 LTM* ProForma): Resins capacity (kton/y)
6,460
Gross Revenue R$ 27.3 billion
510
Net Revenue R$ 20.8 billion
EBITDA R$ 3.0 billion
Total Assets R$ 34.6 billion 2,915
*LTM: oct/08 to sep/09 PVC
Profile: PP
PE
29 petrochemical plants : 26 in Brazil and
3 in the USA
3,035
Listed on 3 stock exchanges:
BM&FBovespa, NYSE and Latibex
Source: Braskem / Company estimates 7
8. Sunoco Chemicals acquisition does not
change Capital Structure and Leverage
• Strong liquidity with cash and cash equivalents of approximately R$8 billion
(US$4.3 billion)
• Capital structure with significant capacity (net debt/EBITDA) of
approximately 3x
Estimated Capital
Estimated Capital
ProForma Increase R$4.5bi –
Increase R$4.5bi –
Sep 09 Sunoco Chemicals
Quattor Acquisition
Acquisition
Cash & Cash Equiv. 4,274 8,074 7,444
Gross Debt 17,470 17,470 17,470
Net Debt 13,197 9,397 10,027
Net Debt / EBITDA 4.55x 3.24x 3.30x
Source: Braskem, Unipar and Sunoco Inc 8
9. Strategic Roadmap
2020 Objective: Leader in the
Americas, rank among the 5
largest petrochemical
companies worldwide and to
be positioned as the preferred
partner for global alliances
Source: Braskem 9
10. Acquisition of
Sunoco
Chemicals
Bernardo Gradin
Carlos Fadigas