Meeting with InvestorsInvestors

2Q10 Results

Bernardo GradinCEO

Marcela Drehmer CFO

Forward-looking Statements

This presentation contains forward-looking statements. These statements are not

historical facts and are based on management’s objectives and estimates. The

words "anticipate", "believe", "expect", "estimate", "intend", "plan", "project",

"aim" and similar words indicate forward-looking statements. Although we believe

they are based on reasonable assumptions, these statements are based on the

information currently available to management and are subject to a number of

risks and uncertainties.

2

risks and uncertainties.

The forward-looking statements in this presentation are valid only on the date

they are made (June 30, 2010) 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.

Agenda

� 2Q10 Results

� Growth with Value Creation

3

� Growth with Value Creation

Agenda

� Growth with Value Creation

� 2Q10 Results

4

� Growth with Value Creation

Scenario

� By the end of 2Q10, resins and basic petrochemical prices (in general) reversed their upward trend:

� Slight slowdown in Asian demand (reduction in government economic stimulus measures);

� Uncertainty regarding economic recovery in developed countries;

� Decline in raw material prices;

� Decrease in resins international prices by the end of April reflected in lower prices in the Brazilian market in June. Focus in profitability led to a temporary increase in Company’s resins inventory.

� Key factors in the 2nd half of 2010:

5

� Key factors in the 2nd half of 2010:

� Weakening of Asian market, combined with new capacity startups in Asia and the Middle East

� Real strengthening of world economy versus reduction in government stimulus measures

� Mitigating factors in the 2nd half of 2010:

� Scheduled shutdowns at U.S. refineries and hurricane season could affect production in 3Q10

� Inventories building in 3rd generation operations

� In Brazil, demand for thermoplastic resins is expected to grow by 10% per year, following GDP growth and led by the PVC market

� Resins imports increased in June, reaching 30% of the PE market. This share should return to historical levels during the 2nd half of the year

Source: Braskem / CMAI

Highlights

� Recurring declines in Net Debt/EBITDA (LTM*): 2009 – 3.46x, 1Q10 – 3.12x and 2Q10 – 2.84x

� Consolidated pro-forma EBITDA (LTM) of R$ 3.8 billion with EBITDA margin of 15.5%

� Quattor increases cracker operating rates to 83% in 2Q10, with better stability of raw material

supply. EBITDA reaches R$ 214 million, for EBITDA margin of 15.0%, up significantly from 8.8% in

1Q10

� Reduction on PP operating rates due temporary decrease on exports competitiveness

� Brazilian team managing Braskem America assets

6

� Brazilian team managing Braskem America assets

� Green ethylene plant in commissioning and pre-operational phase to supply global markets

beginning September 2010

� Merger by Braskem of stock in Quattor Participações S.A. on June 18 (on schedule), making it a

wholly owned subsidiary of Braskem

� Funding of around R$ 1 billion, of which US$ 350 million was in 10-year bonds at 6.875% yield,

the lowest ever obtained by Braskem

� Synergies from acquisitions estimated at R$ 400 million in annual and recurring EBITDA as of

2012, beyond R$ 340 million in net present value of financial synergies

Source: Braskem * LTM: last 12 months

92%84% 89%

81% 76% 83% 83% 79% 81%95% 98%

87%

Ethylene Polyethylene Polypropylene PVC

Increase in Quattor capacity operating rate positively impacted 2Q10

Braskem consolidated operating rate %%

**

2Q09 1Q10 2Q10 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10 2Q09 1Q10 2Q10

7

� Quattor better performance:

� 12 pp growth in ethylene operating rate – 83% in 2Q10 versus 71% in 1Q10

� 15 pp growth in PE operating rate – 76% in 2Q10 versus 61% in 1Q10

� Crackers and 2nd generation plants, in general, show recovery of operating level in 2Q10

� Scheduled shutdown in Camaçari affected PVC operating rate in 2Q10

* 2009 data does not include the 200 kton expansion in QuattorSource: Braskem

Demand stability in 2Q10 reflects sectors good performance

Apparent Consumption (Kton)

4,048 4,173 4,2914,720

+10%

1H10

8Source: Abiquim, Braskem estimates, Tendência Report, IBGE, Anfavea

Food

Retail

Hygiene and Cleaning

Agribusiness

Consumer Goods

Construction

Automotive

Electric and Electronic

Relevant

Moderate

Low / Retraction

Domestic demand performance

by sector:

2007 2008 2009 2010e

Historical Prices

PE prices evolution (100 basis) PP prices evolution ( 100 basis)

80

90

100

110

120

130

apr/09 09

aug/09

oct/09

dec/

09

feb/10

apr/10 10

aug/10

80

90

100

110

120

130

140

apr/09 09

aug/09

oct/09

dec/

09

feb/10

apr/10 10

aug/10

9

International Market Brazilian Market International Market Brazilian Market

� Resins prices show signs of recovery in the international market

� Recovery expected already in August

Source: CMAI

apr/09

Jun-09

aug/09

oct/09

dec/

09

feb/10

apr/10

Jun-10

aug/10

apr/09

Jun-09

aug/09

oct/09

dec/

09

feb/10

apr/10

Jun-10

aug/10

Domestic Market Performance

Share of Imported Resins Origin of Imports 2Q10

(PE, PP and PVC)

Latin America

(others)

1%

Europe

Others

13%

25%

19% 20%

26% 25% 25%

10Source: Braskem

Americas represent 65% of imports

Import Duties = 0%� Imports followed domestic market growth

� Local offer is not sufficient to meet supply

PVC demand

North America

28%

Argentina

16%

Colombia

19%

Mexico

1%

Asia

10%

Europe

12%

1Q09 2Q09 3Q09 4Q09 1Q10 1Q10

Strong cash generation and competitive margins

R$ million

� Strong cash generation mainly due to the improvement on Quattoroperational performance

� Productivity gains already reflecting on 2nd quarter

Key Indicators2Q10

(A)

1Q10

(B)

2Q09

(C)

Change

(A)/(B)

Change

(A)/(C)

Net Revenue 6,539 6,272 4,996 4% 31%

EBITDA 1,042 909 735 15% 42%

EBITDA Margin 15.9% 14.5% 14.7% 1.4 p.p. 1.2 p.p.

11Source: Braskem

reflecting on 2 quarter result

� Focus on capturing synergies

� Significant improvement on results after financial crisis

Financial Result2Q10

(A)

1Q10

(B)

2Q09

(C)

Change

(A)/(B)

Change

(A)/(C)

Net Financial Result (575) (880) 1,379 -35% -142%

Foreign Exchange (FX) and Monetary Variation (MV) (216) (374) 1,666 -42% -113%

Financial Result excluding FX and MV (359) (506) (287) -29% 25%

Interest Expenses / Revenues Net (165) (129) (153) 28% 8%

Tax Assets and Liabilities (40) (287) (30) -86% 34%

Others (155) (90) (105) 71% 47%

213

1,042

FX Impact

on Revenue

FX Impact on

Costs

-38

26

R$ million

EBITDA Trends – 1Q10 vs. 2Q10

The better domestic prices through May, following the

international market, offset the higher raw material prices in

2Q10

909

(5) (12) (20) (43)

1,042

EBITDA1Q10

ContributionMargin

Volume FX Fixed Costs +SG&A

Others EBITDA2Q10

12Source: Braskem

EBITDA Trends– 1H09 vs. 1H10

R$ millionBetter resins performance in the international market,

partially offset by the US dollar depreciation, led to a

51% EBITDA growth

1,362

FX Impact on

Revenue

FX Impact on

Costs

-2,474

1,653

13Source: Braskem

‘Others’ includes R$36 million of non recurring revenue from the 1H09 andR$27 million of non recurring expenses in 1H10

1,293

297 (821)

10

(190)

1,951

EBITDA1H09

Volume ContributionMargin

FX Fixed Costs +SG&A

Others EBITDA1H10

Leverage falls below 3x for the first time since the acquisition

Anticipation of debt payment in the amount of R$4.1 billion

17,233

14,384

Gross Debt (million of R$)

-17%

9,676

7,984

Gross Debt (million of US$)

-17%6.60

8.20

Average Term (in years)

24%

14Source: Braskem

Mar 10 Jun 10 Mar 10 Jun 10 Mar 10 Jun 10

3.12x2.84x

Mar 10 Jun 10

Net Debt/ EBITDA

(million of R$)

-9%3.23x

2,84x

Mar 10 Jun 10

Net Debt/ EBITDA

(million of US$)

-12%

*After capital increase of R$3.74 billion and payments related to the acquisition of

Quattor (R$700 million) and Sunoco Chemicals (R$630 million)

*

Comfortable cash position covers approximately2 years of debt amortizations

64% of debt pegged to USD

Amortization Schedule*

R$ million

(06/30/10)

25%3,475

15Source: Braskem * Does not include transaction costs

2,278

584

1,8891,731

2,346

3,642

1,299 1,315

1,631

1,197

2010 2011 2012 2013 2014/

2015

2016/

2017

2018/

20192020

onwards06/30/10

Cash

4%

13% 12%

16%

9% 9%12%

Invested in US$

Invested in R$

Investments in 2010 amount to R$1.6 bi

InvestmentsR$ million

360

3556

Quattor

Quantiq

VenezuelaBraskem America

621

1,617

16

Industrial Assets

New Projects

Projects with Petrobras

Source: Braskem

208

61

317

52

192

254

7210

2010e

4421

101

863

251

7

119

7

1H10

Quantiq

Equipment Replacement

Capacity Increase / PVC Alagoas

Maintenance

Mexico

Others

Productivity

Green PE

621

400

79

43

Quattor synergies of R$ 400 million in EBITDA as of 2012

R$ million

� Investment of R$ 350 million required to capture all

279

Industrial Logistics Supply EBITDA Synergies

17

� Production mix

� Seizing the cracker streams

�Optimization of inventories

�Maximization of gains from product distribution (domestic and export markets)

�Optimization of modes

� Joint management of feedstock purchases

� Renegotiation of third-party agreements

required to capture all synergies

� Financial synergy NPV estimated in R$ 340 million

(a) RecurringSource: Braskem

Agenda

� Growth with Value Creation

� 2Q10 Results

18

� Growth with Value Creation

“BECOME THE GLOBAL

SUSTAINABLE CHEMICAL

LEADER, INNOVATING FOR

Strategic Direction

LEADER, INNOVATING FOR

BETTER SERVE THE

PEOPLE”.

Outlook on the global petrochemical industry

Ethylene: Operating rate 1H10

Industry at 1H2010

� Producers already responded to the demand slowdown in 2Q10 by reducing the operating rates

� Competitive cost base allows the US to operate at higher rates than other regions

� Braskem back to operate at a rate above world average in 2Q10

79

8683

7781

89

0

5,000

10,000

15,000

20,000

Europe N. America Asia M. East World Braskem

Capacity 2Q Operating rate 2Q10 (%)

000 ton

84

90 89

8286

84

Source: CMAI

above world average in 2Q10

Global Scenario

� New capacity additions can lead to the closing down of non competitive assets on a permanent basis, especially in Europe and US

� Global economic outlook volatility versus petrochemicals demand

� Expectation of improvement in the industry profitability as of 2H11

20

Ethylene: Supply and Demand Balance

000 ton

83.880.4

83.1

87.0 88.490.5

0

50,000

100,000

150,000

200,000

2009 2010e 2011e 2012e 2013e 2014e

Capacity Demand Operating Rate 2010e (%)

Capacity 2Q Operating rate 2Q10 (%)

Operating rate 1Q10 (%)

2010 Ethylene capacity additions

Region CompanyAdditional

Capacity 2010Start up

Effective Capacity 2010*

Middle East Morvarid PC 334 2Q10 208

Middle East RLOC 975 2Q10 / 3Q10 650

Middle East Kayan 300 4Q10 300

Middle East Petro-Rabigh 325 1Q10 325

Middle East SHARQ 1,100 2Q10 800

Middle East Yansab 433 1Q10 108

Middle East Borouge 700 3Q10 650

Asia Baotou Shenhua 100 3Q10 100

Asia CNOOC & Shell PC 150 2Q10 150

� New players are located in Middle East (38%) and Asia (59%)

� Feedstock matrix of the new capacities:51% naphtha and 49% gas

� Delays already reduced in 18% the start up of new

21

Asia CNOOC & Shell PC 150 2Q10 150

Asia Dushanzi PC 667 2009 667

Asia Fujian Ref & Chem 533 2009 533

Asia Panjin Ethylene 450 2Q10 305

Asia Secco 150 2009 150

Asia Shenyang Paraffin 87 2009 87

Asia SINOPEC/SABIC Tianjin PC 1,000 1Q10 / 3Q10 750

Asia ZRCC 750 2Q10 750

Asia JX Nippon Oil & Energy Corp. 220 3Q10 220

Asia LG Chem 75 2009 75

Asia YNCC 33 2009 33

Asia Shell Chemical 667 2Q10 667

Asia MOC 675 2Q10 675

Asia PTT Polyethylene 917 3Q10 500

Others 275 275

TOTAL 10,916 8,978

Source: CMAI / Parpinelli / Braskem Analysis

-18%

18% the start up of new capacity for the year

� A demand growth of 4.5 million tons of ethylene is expected in 2010, up by 4% compared to 2009

� Delays and learning curve from the commissioned plants shall positively impact the 2010 supply/demand balance

* Estimated data. Does not consider the plants operating rates and possible additional delays.

BRAZIL

Expansion with increased competitiveness

PVC Expansion

Operational start-up : 1st half 2012

� Expansion of 200 ktony in PVC capacity in Alagoas

� Investments of US$470 million

� Expected NPV ~US$450 million

� Disbursements already in 2Q10

Support for Brazil’s infrastructure projects

Source: Braskem

Industrial Assets

New Projects

Projects with Petrobras

22

� Support for Brazil’s infrastructure projects

� Braskem participation in Suape Project (textile

complex) and Comperj (1st and 2nd Generation)

under analysis.

Comperj and Suape

LATIN AMERICA

Expansion with increased competitiveness

Mexico: Ethylene XXI Project

Operational start-up: early 2015

� JV between Braskem (65%) and the Mexican group IDESA (35%) for the purchase of ethane from PEMEX

� Integrated project: 1 Mty of ethane and 1 Mty of PE

� Investment estimated at up to US$2.5 billion over 5 � Investment estimated at up to US$2.5 billion over 5 years (project finance)

� Financial Advisor hired: Sumitomo Bank

� Structuring of the participation of ECAs and MLAs1

Industrial Assets

New Projects

Projects with Petrobras

Source: Braskem 231 Export Credit Agencie (ECA) and Multilateral Agencie (MLA)

Final comments

� Capture of synergies with focus on generating results

� Leverage reduction: financial health and liquidity

� Support for the sustainability of the Brazilian petrochemical and plastic

chains – launched the National Pact of Chemical industry and ongoing

24

Sustainable GrowthSustainable Growth

National pact of the Plastic industry

� Expansion of green PE project with focus on renewable feedstock

� Projects in Latin America: competitive raw materials

Meeting with InvestorsInvestors

2Q10 Results

Bernardo GradinCEO

Marcela Drehmer CFO