1st Annual 1st Annual CitiCiti Brazil Brazil

Equity ConferenceEquity ConferenceJune 2008June 2008

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 in 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 included in this presentation are valid only

on the date on which they are made (March 31, 2008), and the Company does

not undertake 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.

3

Agenda

� Overview

� Key Differentiators

� Key Financial & Operational Figures

� Upside Drivers

3

4

Agenda

� Overview

� Key Differentiators

� Key Financial & Operational Figures

� Upside Drivers

4

5

Braskem # 1 Petrochemical Company in Latin America

• #1 Petrochemical Company in LATAM

Resins Production Capacity (kton)

5

Source: Braskem/ CMAI

1Q08 LTM FINANCIALS

• Net Revenue: US$ 10.2 bi

• EBITDA: US$ 1.6 Bi

• Assets: US$ 12.1 bi

• EV: US$ 8.0 bi 0

1,000

2,000

3,000

Quattor Solvay EcopetrolMexichemBraskem

3,440

1,515

682521

438

692

Dow

3,500

6

Strong and consistent growth via Organic and Acquisitions Routes

Source: Braskem(1) Ethylene and Resins(2) LTM 1Q08 Net Revenue

1994 1996 1998 2000 2002 2004 2005 2006 2007

Organic

Acquisitions

1,000

2,000

3,000

4,000

5,000

US$ 1,357 MM

US$ 2,375 MM

US$ 9,712 MM

1,228 1,2341,528 1,734

3,045 3,225

3,621

5,551

• Production capacity (1) ► CAGR (94-08) = 12%

• Total Revenues ► CAGR (94-08) = 15.5%

New PP Plant

start-up

New PE Plant

start-up

Creation ofBraskem

PP DBNEthylene DBN PVC DBN

PolitenoAcquisition

Copesul / IPQAcquisition

3,145

KtonRevenues

6

2008

5,901

US$ 10,153MM (2)

7

• # 3 Resins Producer in Americas -petrochemical “pure-play”(kton)

7

0%

5%

10%

15%

20%

Mexichem Solvay Westlake DowUnipar

18%

LG Ultrapar Nova Chemical

Median

Braskem

• #2 Global Ebitda Margin - petrochemical “pure-play” (03-07 average)

Source:Braskem / CMAI March 2008

PVC

PEPP

5,774

3,440

4,646

2,949

2,161

2,040

3rd

FormosaDow

615

6464

5,0955,095

LyondellBasellBraskem ShintechIneos

2,8132,813

1,833

1,8151,815

1,110

515515

978978

761

1,2101,210

926926

1,235

Large Scale combined with superior profitability

• #2 Ebitda Margin in the Americas (1Q08 LTM)

0%

5%

10%

15%

20%

Mexichem Nova Chemical

Unipar DOW Westlake Ultrapar

Median

Braskem

15%

8

AgendaAgenda

� Overview

� Key Differentiators

� Key Financial & operational Figures

� Upside Drivers

8

9

% Capacity Share

Region Company PE PP PVC

South America Braskem 46% 44% 32%

Quattor 23% 31% 0%

North America DOW 22% 4% 1%

NOVA 7% 0% 0%

Mexichem 0% 0% 4%

Westlake 6% 0% 8%

Northeast Asia LG Chemical 5% 2% 6%

Western Europe Solvay 0% 0% 15%

Regional strength better than that of global peers

9

Source: Braskem / CMAI

Unmatched capacity share in its respective home region

1010

Braskem has most of its operations in the leading economy in LATAM…

• Brazil: 1/3 of LATAM GDP • LATAM GDP (US$ billion) *

Brazil: 1,838

México: 1,353

Argentina: 524

Venezuela: 335

Colombia: 320

Others: 1,070

Total: 5,440

Colombia 6%

Mexico

25%

Argentina

10%

Venezuela 6%

Brazil

33%

Others

20%

Source: The Economist (Mar2008)

(*) PPP – Purchasing Power Parity

11

…and is exposed to a dynamic market with strong growth rates…

• Domestic demand for resins

Source: Abiquim – domestic sales + imports

PEPPPVC

2,880

3,435 3,3773,694

2001 2004 2005 2006

4,048

2007

1,695

990

692

1,833

1,114

1,964

1,228

856

6.0%CAGR

10%

9%

749

• USA Demand for resins (Kton)

23,276

25,90424,749

25,020

2001 2004 2005 2006

24,306

2007

6,350

6,081

6,287

12,826

6,142

12,601

5,563

0.7%CAGR

-3%1%

5,907

12,318

Source: NAD - CMAI

01-07 GDP Elasticity in Brazil: 2x

1212

…with high level of consolidation…

• 2 Top producers share• Number of Producers

BRAZIL USA

Source: Braskem / CMAI

PEPP PVC

1212

9

42 2

PP PVCPE

100% 100%93%

30%51%42%

131313

…Growing & Sustained Leadership in Brazil…

Source: Braskem/Abiquim Dec 07

• PP Market Share • PVC Market Share

• PE Market Share

51% 55% 37%

9% 7% 14%

38%40% 41%42% 49%

50%48%

9%10%

0%

20%

40%

60%

80%

100%

2001 2003 2005 2006 2007

BRASKEM PEER IMPORTS

57%48%

29%32% 27%

14% 20% 19%

54%52% 53%

28% 30%

20% 17%

0%

20%

40%

60%

80%

100%

2001 2003 2005 2006 2007

BRASKEM PEER IMPORTS

29% 31%

55% 50%

32%

16% 19% 16%

52%33% 37%

53% 46%

15% 17%

0%

20%

40%

60%

80%

100%

2001 2003 2005 2006 2007

BRASKEM PEER IMPORTS

141414

Source: Braskem / IBGE

…and Diversified customer basis in the fast-growing Brazilian market

% of Resin Sales% of Resin Sales

FOOD PACKAGING

CONSUMERGOODS

CIVIL CONSTRUCTION

RETAIL

AGRICULTURE

COSMETICS ANDPHARMACEUTICALS

CLEANINGMATERIAL

INFRASTRUCTURE

ELECTRIC AND ELECTRONIC

AUTOMOTIVE

OTHERS

17%

17%

23%

10%3%

2%4%

5%

3%

8%

8%

INDUSTRIALINDUSTRIAL + 6%

Growth by Sector in 2007Growth by Sector in 2007

CONSTRUCTION CONSTRUCTION

AUTOMOBILESAUTOMOBILES

HOME APPLIANCESHOME APPLIANCES

FERTILIZERSFERTILIZERS

CONSUMER GOODSCONSUMER GOODS

PLASTIC PACKAGINGPLASTIC PACKAGING + 4%

+ 5%

+ 5%

+ 5%

+ 15%

+6%

151515

Braskem has differentiated technology

• Over US$ 160 million in R&D assets

• 200 researchers

• 8 pilot plants

• 187 patents filed

• Focus on nanotechnology and intelligent packaging

• Partnership with universities and R&D centers in Brazil and abroad

• 18% of resins sales derive from products developed in the last three years

Source: Braskem

Innovation is a key value driver for Braskem

1616

Green Polymer:A global pioneer achievement

Source: Braskem

• Ethylene plant from ethanol – 200,000 tons

• Operation startup in 2010 in Triunfo, RS

• Pilot plant producing @ 12 ton/year – samples under tests at potential clients

• High demand potential

• Estimated investment of ~ R$ 450 million

100% renewable 100% renewable feedstockfeedstock

Sugar Cane EthanolSugar Cane Ethanol

Certified by Beta Certified by Beta Analytics USAAnalytics USA

Main laboratory in the world Main laboratory in the world specialized in carbon analysisspecialized in carbon analysis

Association with Association with Brazilian and Brazilian and multinational multinational companiescompanies

Food, automotive and Food, automotive and cosmetic industriescosmetic industries

17

Strong and consistent spread over international prices

Source: CMAI / Braskem

PVC: Braskem premium over internationalPVC: Braskem premium over international

PP: Braskem Premium over InternationalPP: Braskem Premium over InternationalPE: Braskem Premium over InternationalPE: Braskem Premium over International %% %%

%%

27%

34%

jan/

05m

ar/0

5m

ai/0

5

jul/0

5

set/0

5no

v/05

jan/

06m

ar/0

6m

ai/0

6

jul/0

6

set/0

6no

v/06

jan/

07m

ar/0

7m

ai/0

7

jul/0

7

set/0

7no

v/07

jan/

08m

ar/0

8

Spread PEAD Braskem / International US$

Average 27%

42%33%

jan/

05m

ar/0

5m

ai/0

5

jul/0

5

set/0

5no

v/05

jan/

06m

ar/0

6m

ai/0

6

jul/0

6

set/0

6no

v/06

jan/

07m

ar/0

7m

ai/0

7

jul/0

7

set/0

7no

v/07

jan/

08m

ar/0

8

Spread PP Braskem / International US$

Average 30%

42%

52%

jan/

05m

ar/0

5m

ai/0

5

jul/0

5

set/0

5no

v/05

jan/

06m

ar/0

6m

ai/0

6

jul/0

6

set/0

6no

v/06

jan/

07m

ar/0

7m

ai/0

7

jul/0

7

set/0

7no

v/07

jan/

08m

ar/0

8

Spread PVC Braskem / International US$

Average 42%

Drivers

•High value-added product mix

•Development of new products

•Logistics constraints as a barrier for imports

•Import tariffs

•Reliability of supply

•Market knowledge

•Technical support for product

applications

18

AgendaAgenda

� Overview

� Key Differentiators

� Key Financial & Operational Figures

� Upside Drivers

18

19

Production growth with higher operating reliability

PE PP PVC

1Q084Q07

ETHYLENE

93%

95%

Source: Braskem

Resin ProductionResin Production KtonKton

1Q07

86%

96%

Capacity Utilization Capacity Utilization %%

ALL-TIME RECORDS

� Production in the last 12 months of 2,827 Kton

� Quarterly PVC production of 130 Kton in 1Q08

1Q084Q071Q07 1Q084Q071Q07 1Q084Q071Q07

88% 89%91%

96% 96%96%94%

104%

92%

702

1Q084Q07

704

LTM1Q08

LTM 1Q07

2,786 2,827

+1%

700

1Q07

20

Continued leadership position in growing domestic market

Source: Braskem / Abiquim

Domestic Sales 1Q08 vs. 1Q07 Domestic Sales 1Q08 vs. 1Q07 %% Resin Market Share 1Q08Resin Market Share 1Q08

+13%

+ 5 %+7%+ 6%

PVCPPResin

BraskemPE

Other

Imports

49%49%

22%

29%

*Domestic sales + Imports in kton

21

Resilience performance in a challenging scenario

R$ million

Source: Braskem * Pro Forma Figures

1Q08 4Q07 Change %

Sales 4,410 4,809 (8)

EBITDA 583 648 (10)

Margin 13.2% 13.5% -0.3 p.p.

Net Income before Minority 120 25 379

Minority Interest (37) 2 -

Net Income 83 27 204

22

648

4Q07 1Q08PricesFixed Costs/ SG&A

Volume Foreign Exchange

Source: Braskem

Raw Materials

188

Other

Evolution of EBITDA Commercial strategy and reduction in fixed costs minimize impacts from higher Naphtha prices

Evolution of EBITDA Commercial strategy and reduction in fixed costs minimize impacts from higher Naphtha prices

583

112

19

(32)

FX impacton costs

FX impacton revenue

(263) (136)

83

(115)

(89)

R$ million

Higher international prices coupled with strong pricing power in the domestic market

Fixed cost reduction and lower export volumes

5% increase in US$/t naphtha prices

Extraordinary sales volume in 4Q07

23

2016 /2017

Source: Braskem

Lengthening of debt profileis a priority and is in course

in R$ million (3/31/08)

3/31/08

1,932

Gross Debt: 9,363

Net Debt: 7,431

2008

In US$

In R$

Cash and equivalents

2009 2010 2011 2012 /2013

2014 /2015

2018 /2020

Perpetual

13%13%

9%9%8%8%

6%6%

16%16%

7%7%

US$ 73%

* Includes R$2.1 billion from bridge loan to acquire Ipiranga Group’s petrochemical assets

9%9%

Average Term:10 years*

22%22%

974974

10%10%

1,2411,241

792

767767 827827 786786894894

534534 617617 614614

1,1431,143

789789

441

2.56

Dec-07 Mar-08

1.93

+33%

Net Debt / EBITDA (x)

Pré-fixado

2%

Bridge

Loan

23%

US$

23% Trade

Finance

27%

CDI

17%

TJLP

8%

US$ 500 million Bond Issuance (~ R$ 875 MM)

875

875

* Average Term after the US$ 500 million bond issuance is 11 years

24

AgendaAgenda

� Overview

� Braskem Key Differentiators

� Key Financial Figures

� Upside Drivers

24

2525

� R$ 200 million on annual and recurring basis in the EBITDA

25

NPV of US$ 1.1 billion in total synergies from Ipiranga acquisition

R$ million

200

TotalSynergies

69

Commercial Financial

9

Industrial

73

SupplyLogistics

25

Others

Source: Braskem

1410

Synergies in 2008 (R$ 108 million)

Total Synergies

26

Accelerated Synergies in 1Q08:R$ 136 million in annual and recurring gains

R$ million

Source: Braskem

Commercial

Industrial

Supply

Logistics

Synergies 1Q08

16

42

7

10

2008

39

29

16

13

Financial ex-Ebitda 59

Financial 2 7

Others 1 4

Actual Goal

Annualized

Benefit on EBITDA 77 108

80

272727

�R$ 100 million estimated annual & recurring gains:

�R$ 30 million in production costs

�R$ 70 million in general and administrative expenses

�R$ 67 million already captured in 1Q08 on annualized and recurring basis

�Renegotiation of contracts: insurance, IT and telecom

�Supply chain integration: reduction in inventory levels of maintenance and production items

�Optimization of the organizational structure

Additional gains of R$ 100 million with Fixed Costs Reduction Program

282828

Strategic alignment with Petrobras

� Superior Industry Structure in Brazil: Consolidation around 2 large competitors (Braskem & CPS).

� New Geographic growth opportunities: linked to Petrobras’extensive footprint in Brazil and abroad

� Synergies:

� potential for operational integration with Petrobras refineries

� Innovation & Technology: partnership with Petrobras Research Center

� High corporate governance standards: New shareholders agreement

29

Ethylene global supply & demand balanceHigh capacity utilization rate in 2008

Source: CMAI, March of 2008

Supply Demand Utilization Rate

131140

149 154

119124

131 136

88%88%88%88%89%89%

91%91%

0

20

40

60

80

100

120

140

160

180

2008 2009 2010 2011

75

80

85

90

95

100

Utilization Rate %MM ton

160

142

89%89%

2012

75

80

85

90

95

100

1 2 3 4 5

SIPCHEM* shelves plans for 1.3 MM ton cracker at Al-Jubail in Saudi Arabia

* SIPCHEM - Saudi International Petrochemical

30

Global supply & demandHigh Ethylene Utilization Rate in South America

EthyleneMM tons

159

Supply2012

9

Saudi Arabia Others

9

Supply2007

126

IranChina

8

Qatar

43

EHYTLENE UTILIZATION RATE (EHYTLENE UTILIZATION RATE (’’0707--’’12)12)

WORLD WORLD ≥≥≥≥≥≥≥≥ 88%88%

SOUTH AMERICA SOUTH AMERICA ≥≥≥≥≥≥≥≥ 92%92%

NORTH AMERICA NORTH AMERICA ≥≥≥≥≥≥≥≥ 85%85%

30

Source: CMAI

31

Meaningful organic growth …

Source: Braskem

Braskem Capacity Additions (2008-12)

* JV with Pequiven (49%) and Sojitz (2%)31

Product Capacity Investment Advantage Start-up(K ton) (US$ MM)

PP Paulínia 350 350 Diversification - Refinery Gas 2008

Green PE 200 NA Ethanol – 100% Renewable 2010

PP Venezuela* 450 900 Propane at competitive cost 2010

PVC Alagoas 200 350 Leadership and innovation 2010

PP Bahia 300 NA Strengthen Market leadership 2012

PE Venezuela* 1,100 2,600 Ethane at competitive cost 2012

Total 2,600

NA: Not Available

Reinvestment spread prudently

• (1) over time, (2) across geographies and (3) with diversified feedstock

32

…resulting in further improvement in cost competitiveness via scale and efficiency

NaphthaFeedstock from Refinery

Ethanol

Camaçari - BA

Triunfo - RS

Paulínia - SP

Venezuela

9%9%

57%57%34%34%32%32% 55%55%

4%4%9%9%

Natural GasPolyethylene Polypropylene PVC

2008 2012 FYE

4.9 million

1,815

1,110

515515

3.4million

715

1,635

2,565

+43%

� Larger scale � Increased Competitiveness

32

Source: Braskem

33

Proven capacity in project management: PP Paulínia

� Start up in April 2008

� Spheripol technology

� Global scale: 350 Kton/year

� Located in the largest consumer market in Latin America

� Feedstock: Propylene from refinery

� Investments of R$ 700 million

34

EV/EBITDA (x)

NOVA Chemicals

8.8

Mexichem SolvayUnipar

12.1

WestlakeDow Braskem

# 1 in Domestic Market Share, #2 in Profitability and # 3 in Growth: not yet translated into the stock price

LG Chemicals

4.8

7.0 7.05.8

50% upside 50% upside potential to the potential to the average peer average peer EV/EBITDA EV/EBITDA multiplemultiple

5.5 5.5

Average – 7.1

Source: Avi Nash LLC

Braskem: High Upside Potential

353535

Braskem: High Upside Potential

Commitment to SustainabilityCommitment to Sustainability

� Dominance in the domestic market with superior profitability

� Exposure to the fast-growing domestic market

� NPV of US$ 1.4 billion derived from synergies and reduced fixed

costs

� Growth projects with increased profitability and high ROCE

� Proven expertise to implement greenfield projects

� Strategic alignment with Petrobras

� Innovation and Technology as key value drivers: green polymer

� Experienced management team focused on value creation

1st Annual 1st Annual CitiCiti Brazil Brazil

Equity ConferenceEquity ConferenceJune 2008June 2008