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May, 15 2003

A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company

First Quarter 2003 EarningsInternational Conference-Call

This presentation includes forward looking statements. Such information is not merely based on historical fact but also reflects management’s objectives and expectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan", "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks.

Known risks include uncertainties which include, but are not limited to price and product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations, regularity in the sourcing of raw materials and inoperations, among others. This presentation is based on events up to May 15, 2003 and Braskem is not liable to update the contents in the light of new information and/or future events.

Braskem takes no responsibility for transactions or investment decisions made on the basis of information contained in this presentation.

Disclaimer – forward looking statements :

3,17 2,57

0,001,00

2,003,004,00

Dec 2002 Mar 2003

6.0006.2006.4006.6006.8007.000

Dec 2002 Mar 2003

Braskem – First Quarter 2003 Highlights:

1Q02 1Q93

1Q02 1Q03

OCG (R$ million)

EBITDA (R$ million)

Net Debt / OCG (LTM*)

Net Revenue (R$ million)

Net Debt (R$ million)

+86% +89%

* Last Twelve Months

R$(450)MM

Braskem – Simplified structure accelerating the capture of synergies:

29.6% 29.6% 35.0% 34.7%

66.7% 42.6% 69.4% 43.2%

POLIALDEN

% Voting stake

% Total stake

* Gains on a recurring, annulized basis

Mar/03

Dec/02Sep/02

Synergies*:

(R$ million)

Goal = 330

Braskem - EBITDA Growth (R$ million):

(*) Extraordinary items

1Q02 2Q02 3Q02 4Q02 1Q03

450780*

International Price Trend (Naphtha vs. PEBD):

Naphtha & PEBD Price TrendIndexed as of January 2, 2003

NaphthaPEBD

5/12/2003

(% Indexed)

Source: Bloomberg

Braskem – Operating Performance - Output (tons):

MAIN PRODUCTS 1Q03 (A)

1Q02 (B)

Chg % (A)/(B)

ETHYLENE 229,165 224,769 2 285,436

THERMOPLASTICS - TOTAL 384,254 349,002 10 409,429

PP 107,533 92,531 16 110,745

PE 157,966 154,797 2 170,544

PVC 103,844 87,564 19 112,558

Braskem – Market – Sales Volume (tons):

* Of this amount, 102,000 tons (45%) represent sales to Braskem companies

MAIN PRODUCTS 1Q03 (A)

1Q02 (B)

Chg % (A)/(B)

ETHYLENE 230,251* 227,913 1 285,993

THERMOPLASTICS - TOTAL 401,098 376,139 7 388,925

PP 111,716 95,256 17 103,947

PE 164,563 163,712 1 165,948

PVC 110,679 103,602 7 101,898

Braskem – Exports in 1Q03:

1Q02 1Q03

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(US$ MM)

Braskem – Income Statement Review:R$ million

Chg. (%) (A)/(B)

Net Revenue 2,292 1,230 86 2,097

Cost of Goods Sold (1,823) (1,043) 75 (1,760)Gross Profit 469 186 152 337

Gross Margin (%) 20 15 33 16

EBITDA 450 238 89 1,164

EBITDA Margin (%) 20 19 5 56

Operating Profit * 358 44 714 836

Net Financial Result (87) (217) (60) 108

Net Profit (Loss) 131 (164) - 1,042

Earnings per Share 38.73 (26.26) - 311.48

1Q03 (A)

1Q02 (B)

(* Operating Profit = Operating Income – Net Financial result)

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Braskem – Net Revenue for Main Products (R$ million):

MAIN PRODUCTS1Q03

(A)1Q02

(B)Chg. % (A)/(B)

ETHYLENE 233 115 103 241

TOTAL - THERMOPLASTICS 1,077 608 77 890

PP 317 162 96 238

PE 440 266 65 367

PVC 271 150 81 232

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Braskem – Cost of Goods Sold (1Q03):

COGS 1Q03:

R$ 1.823 billion

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AveragePrice

970 (706)

Fixed &Variable

OtherOperating

Exp/Income

Braskem – 1Q03 x 1Q02 EBITDA comparison (R$ million):

SalesVolume

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Braskem – EBITDA consistent growth:

Source: Thomson Financial Investor Relations and Braskem

(*) Average EBITDA Margin of Basf, Dow, Reliance, DuPont, Solvay, Lyondell, Eastman and Georgia Gulf, basedupon disclosed 1Q03 earnings data.

EBITDA margin – Sector

Braskem

Industry Average (*)

1Q03 1Q02

12%15%

20% 19%

1Q02 2Q02 3Q02 4Q02 1Q03

367315238

EBITDA (R$ million)

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Braskem – Net Debt Reduction:

Debt reduction drivers

� Strong operating cash generation in 1Q03: R$ 579 million;

� Synergies captured through integration: R$208 million on an annualized & recurring basis.

31/12/2002 31/03/2003

(R$ million)

∆∆∆∆ = - 450

∆∆∆∆ = - 6,6%

�Net Debt / OCG Ratio:

�31/12/2002: 3.17

�31/03/2003: 2.57

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Braskem – Consolidated Debt (Mar/03):

Breakdown by Indexation

5%TJLP

IGP- M

Trade Finance~34%

Amortization Schedule

Short Term includes:• R$ 1.294 million in trade finance obligations• ~ R$ 612 million in working capital financing

2004 2005 2006 2007

19%15%

Apr/03 toDec/03

(Gross Debt)

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Braskem : Share price performace in 2003

jan-03 fev-03 mar-03 abr-03 mai-03

Ibovespa

BAK (ADR)

As of closing on May 8, 2003

Indexed as of Jan. 2, 2003

Average daily trading volume ~_R$ 873,000

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Braskem : An excellent investment opportunity !� Leading thermoplastics producer in Latin America

� Integrated operations enable synergies to be captured

� Consolidated businesses and superior margins, with adjustment of capital structure already under way;

� OPP and Nitrocarbono incorporation completed

� Already a Bovespa’s Level 1 Company; shall qualify for Level 2 in 2 years

� Offering 100% tag-along rights for all shareholders

� High potential for shareholder value creation

Braskem: A world-class Brazilian petrochemical company !Braskem: A world-class Brazilian petrochemical company !

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May, 15 2003

A World Class Brazilian Petrochemical CompanyA World Class Brazilian Petrochemical Company

First Quarter 2003 EarningsInternational Conference-Call

Teleconferência de resultados 1 t03 (versão inglês)

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