Meeting with Investors

4Q10 and 2010 Results

Meeting with Investors

4Q10 and 2010 Results

Carlos FadigasCEO

Marcela DrehmerCFO

Carlos FadigasCEO

Marcela DrehmerCFO

Sao Paulo, March 22, 2011Sao Paulo, March 22, 2011

4Q10 and 2010 Results4Q10 and 2010 Results

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.

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

made (December 31, 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.

2

Agenda

� 4Q10 and 2010 Results

� Growth with Value Creation

3

� Petrochemical Industry

� Outlook and Priorities

Agenda

� 4Q10 and 2010 Results

� Growth with Value Creation

4

� Petrochemical Industry

� Outlook and Priorities

Highlights

� Braskem’s EBITDA stood at R$1.1 billion in 4Q10 with a 14.9 %

EBITDA margin

� 2010 EBITDA reached R$4.1 billion, up 27% from 2009

• Quattor’s EBITDA increased 78% reaching R$1 billion

� Braskem’s domestic resins sales increased 11%

� Net Income of R$1.9 billion in 2010

� Distribution of R$666 million in dividends

3,181

4,055

2009 2010

EBITDA (R$ million)

+27%

1,638

2,308

2009 2010

EBITDA (US$ million)

+41%

5

� Braskem is committed to its financial solidity:

� Debt prepayment and long term bonds issues lengthened the average debt term

to 12.5 years

� Net Debt/EBITDA ratio fell from 3.59x (Dec/09 pro forma) to 2.43x in Dec/10

� The Administrative Council of Economic Defense (CADE), approved without restrictions

the acquisition of Quattor

� Synergies from the acquisition are expected to reach R$377 million in annual

EBITDA for 2011

� Ethylene XXI Project – Mexico

� Letters of interest to the project finance surpassed its financing needs

� Strategic partnership with Ineos and Lyondell Basell for the use of their technology at the polyethylene plants

Exports 23% 26%

22,647

27,829

2009 2010

+23%

Net Revenue (R$ million)

86% 87%78% 83% 80% 85%

94% 93%

2009 2010 2009 2010 2009 2010 2009 2010

Ethylene Polyethylene Polypropylene PVC

63%71%

83% 89% 94%

4Q09 1Q10 2Q10 3Q10 4Q10

Capacity utilization rates were positively impacted by the improvement of Quattor’s assets

Braskem consolidated operating rates %%

Quattor - Ethylene

� Raw material supply regularization, in the Southeast and Rio de Janeiro complex, gradually increased

the operating rates of Quattor’s assets:

� RJ unit presented a record rate of 93% in the last quarter of the year

� Continuous operational improvement of existing assets (record production rates in the south

complex)

� Scheduled maintenance shutdown at Bahia’s cracker in the 4Q10 had a higher influence in the PVC

production, partially impacting the average operating rate of PE and PP

*2009 data does not include Quattor expansion of 200 kton

2009 2010 2009 2010 2009 2010 2009 20104Q09 1Q10 2Q10 3Q10 4Q10

Source: Braskem 6

North America

29%Asia

Europe

10%

Others

14%

� Origin of Imports in 2010

(PE, PP and PVC)

� Braskem’s Sales Profile – 2010

� Braskem’s Performance – 2009 Vs. 2010 (Thousand tons)

Domestic market performance

3,072 3,413

2009 2010

Braskem

+11%

Argentina

21%

Colombia

15%

Mexico

1%

Asia

10%

Source: Abiquim, Braskem

Americas account for 67% of imports

� Braskem’s Sales Profile – 2010

� Imports represented 26% of the

domestic market

7

29%

18%

13%

9%

7%

6%

4%

4%

10%

FOOD

PACKAGING

RETAIL

HYGIENE AND

CLEANING

CONSUMER

GOODS

CONSTRUCTION

AUTOMOTIVE

AGRIBUSINESS

INDUSTRIAL

OTHERS

� Contribution margin was positive impacted by the

higher sales volume and the improvement in resin-

naphtha spread. FX impacted by the appreciation in

Brazilian real.

R$ million

1,979

FX impact

on costs 2,089

FX impact

on revenues(3,140)

EBITDA performance: 2010 vs. 2009

**2009 non-recurring effect amounts R$135 millionSource: Braskem *SG&A: R$244 million of non-recurring expenses in 2010

3,181

523

1,051

441 135

4,055

EBITDA

2009

Volume Contribution

Margin

FX Fixed Costs

SG&A

Non recurring

effect 2009

EBITDA

2010

( )

( ) ( )

* **

8

Value creation through acquisitions

Quattor’s EBITDA Performance (R$ million)

107

214

302

361

+99%

+41%

+19%

554

984

+78%

9

Braskem America’s EBITDA Performance (US$ million)

1Q10 2Q10 3Q10 4Q10 2009 2010

37

22

32

23

1Q10 2Q10 3Q10 4Q10

-30%

26*

*Excluding the non-recurring positive ajustment in the

inventory booking criteria of R$ 10 MM.

66

114

2009 2010

+73%

2011 EBITDA*: R$377 million 2012 EBITDA*: R$495 million

350

495

87

59

R$ million

377

82

61

R$ milhõesR$ million

Synergies from Quattor acquisition totaling R$377 million in EBITDA for 2011

* Annual and Recurring

350

Industrial Logistics Supply EBITDA Synergies

Source: Braskem

234

Industrial Logística Suprimentos EBITDA SinergiasIndustrial Logistics Supply EBITDA Synergies

10

Identification of new opportunities, efficient and rapid implementation of initiatives to

capture synergies

� Integrated planning for industrial units

� Centralized maintenance plan assets strategy

� Optimization of freight and gains in distribution and storage

� Joint purchase of materials for industrial operations

Dec 2009

Gross Debt: R$ 17,637 MM

Net Debt: R$ 11,417 MM

EBITDA: R$ 3,181 MM

Average Debt Term: 6.6 years

Gross Debt/EBITDA: 5.54x

LEV

ER

AG

EDec 2010

Gross Debt: R$ 12,728 MM

Net Debt: R$ 9,839 MM

EBITDA: R$ 4,055 MM

Average Debt Term: 12.5 years

Gross Debt/EBITDA: 3.14x

-14%

-28%

Indebtedness and leverage decrease

Net Debt/EBITDA: 3.59x Net Debt/EBITDA: 2.43x-32%

4Q10 3Q10 4Q09 Chg. Chg. 2010 2009 Chg.

(A) (B) ( C) (A)/(B) (A)/( C) (D) (E) (D)/(E)

Net Financial Result (541) 183 (981) - -45% (1,618) 266 -

Foreign Exchange Variation (FX) 106 638 166 -83% -36% 405 2,782 -85%

Monetary Variation (MV) (65) (40) (140) 63% -54% (355) (511) -31%

Net Financial Result (583) (416) (1,006) 40% -42% (1,668) (2,005) -17%

R$ Mil l ion

Non-recurring Financial Expenses: approx. R$250 million in 4Q10 and R$464 million in 2010Source: Braskem 11

Debt reduction and lengthening the average maturity of debt

DEBT PROFILE

2010Foreing

Entities

1%

Gov.

Entities

26%Capital

Market

38%

393

583*

13% 14%13%

20%

Amortization Schedule(1)

(million of R$)

12/31/2010

Foreing

Entities

5%

Gov.

Entities

22%

Banks

52%

Capital

Market

21%

2009

→→→→ More balanced source of

funds.

Banks

35%

Issue of US$450 million in perpetual bonds, project finance prepayment and

others financing operations lengthened the average debt term to 12.5 years

12

2,4961,733

1,245

1,8201,694

1,0731,360

1,244

2,594

2011 2012 2013 2014 2015 2016/

2017

2018/

20192020

onwards12/31/10

Cash

10%8%

11%10%

2,889

(1) Does not include transaction costs

*US$350 million of Stand byInvested in US$

Invested in R$

Agenda

� 4Q10 and 2010 Results

� Growth with Value Creation

13

� Petrochemical Industry

� Outlook and Priorities

“BECOME THE GLOBAL

SUSTAINABLE CHEMICAL

LEADER, INNOVATING FOR

Strategic Direction

LEADER, INNOVATING FOR

BETTER SERVE THE

PEOPLE”.

14

Structured resource base to support client needs:

� Over R$ 330 million in R&D assets

� More than 190 researchers

� 8 pilot plants

� More than 400 patents filed worldwide

Innovation pipeline: new developments to aggregate further value

Innovation and Technology Center

�Strenghtening the value chain competitiviness

PP

Coffee Bags

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

� 12% of Polymer Business Unit revenues results from new products launched

in the past 3 years

PE

BIOPOLYMERSInnovation pipeline

NPV: ~US$ 510 millionPP

PVC

15

PVC

Windows

PVC

Doors

Brazil

PVC Expansion

� Startup: May 2012

� Capacity: 200 kton/year

� Investment: US$470 million

� Disbursement 2011e: R$380 million

� Expected NPV: ~US$450 million

� Project Financing:

� BNDES: up to US$525 million

Growth strategyIncrease efficiency and the use of assets in the local market

142

391 Maintenance Shutdown

HSE

1,644

Investments

(R$ million)

16

� BNDES: up to US$525 million

� BNB: R$200 million

� Attractiveness: to supply the increasing Brazilian demand

278

89

243

407

94

142

2011e

Productivity

Capacity Increase / PVC Alagoas

Equipment Replacement

Mexico

Others

COMPERJ

� Project configuration and raw material definition together

with Petrobras

Brownfield Projects (under review)

� PE assets: RJ, RS, SP

� PP assets: SP, BA

Growth strategyOn the path to leadership in sustainable chemicals

Green PP

2013

�Successful track record for

�Innovation in bioplasticmarket

�Production integrated with

Development

�Partnerships for the development of competitive technologies

Green PE

2010

�Successful track record for implementing projects: term and costs

�Capture of 2.5t CO2/t PE

�Partnership with Clients

�Production integrated with green propylene

�Capture of 2.3t CO2/t PP�Cooperation agreement with

Cenpes (Petrobras Research Center)

�Development of other cracks streams to sustainable chemicals

�PE integrated project study

Braskem becomes a global leader in

biopolymers

17

Growth strategyProjects with competitive raw material

Ethylene XXI Project – JV Braskem and IDESA - Mexico

Characteristics

�Startup: January 2015

�Ethane acquisition from PEMEX

� Integrated project: 1 Mton ethylene and

1Mton PEs

� Investment: US$2.5 billion (project finance)

�Mexico imports 68% of its PE demand (1.8

million ton/year)

PEMEX Gas (Basic Petrochemicals)

Ethane

Cracker

Ethane

66,000 bpd 1,000 kton/y

Gas

Ethylene

million ton/year)

�Financial advisor: Sumitomo Bank

�Strategic partnership with Ineos and

Lyondell Basell for PE plants technologies

�Structuring of Project Finance: already

received US$5 billion in letters of interest

2011 Focus

�Selection of the cracker technology

�Structuring of Project Finance: due diligence, negotiation of financial contracts agreement

�Studies on environmental impacts and beginning of the process to obtain the construction licenses

�To finalize the engineering agreement, and the conclusion of the project engineering

�Definition and negotiation of EPC agreements (Engineering, Procurement and Construction)

1,000 kton/y

PEMEX

Exploration

and

Production

Gas

Manufacturing

Industry

Polyethylene

18

Agenda

� 4Q10 and 2010 Results

� Growth with Value Creation

19

� Petrochemical Industry

� Outlook and Priorities

Ethylene: Operating rate 2010

Industry in2010

� Operating rates decreased in 4Q10 driven

by the rigorous winter in the Northern

hemisphere and operational problems at in

Europe and Middle East

� Competitive cost base allowed the US to

operate at higher rates than other regions

throughout 2010

� Global operating rate at 83.5% in 2010, 3.1

MM ton

81

89 88

74

8384

84

94

82

78

86

91

50

60

70

80

90

0

5

10

15

20

Europe N. America Asia M. East World Braskem

Outlook on the global petrochemical industry

*

Source: CMAI, Parpinelli Tecnon

� Global operating rate at 83.5% in 2010, 3.1

p.p. over previous forecast

Global Scenario

� New capacity additions can lead to the

closing down of non competitive assets on

a permanent basis, especially in Europe

� High volatility in oil prices boosts naphtha

prices. Prices of resins and basic

petrochemicals follow this trend

� Expectation of improvement in the

industry profitability as of 2H11

Ethylene: Supply and Demand Balance

MM ton

Europe N. America Asia M. East World Braskem

Capacity 4Q Operating rate 4Q10 (%) Operating rate 3Q10 (%)

83.5 83.986.3

88.790.7 91.3

0

50

100

150

200

2010 2011e 2012e 2013e 2014e 2015e

Capacity Demand Operating Rate (%)

20* Impacted by the scheduled maintenance shutdown in Bahia’s cracker for 52 days.

Demand growth shall overcome new capacity additions

EthyleneDemand

CAGR 10-15

4.4%

Supply

CAGR 10-15

2.8%

Asia

Africa

Middle East

Europe

6,521

2,805

4,5146,090

9,010

6.7% 3.4%

5.2%4.5% 4.4% 4.3%

6.8%

3.2%2.3% 2.6%

4.0%

2.1%

Capacity

(MM ton)

Source: CMAI, March/2011

� Limited additional capacity until 2015

� No new investments announced motivated by financial crisis

� Sanctions in Qatar restrict investments in petrochemicals

� No further availability of cheap gas for new projects

� Greenfield projects: 4-5 years to startup

Europe

Americas

Closures

Postponed/Delayed

Supply Growth %

Demand Growth %

21

2,067 743 962

(1,282) (1,227)(699) (150)

529

468

490

3,229

1,816

1,200

2,545

375

400

550

3,216

2,652

3,774

2,805

2,462

2010 2011 2012 2013 2014 2015

-19% Delayed

3,8143,423

3,417

9,010

Brazil: strong potential growth

2010 Market Share Brazilian’s thermoplastic demand (PE, PP, PVC) X GDP Growth%

Million tons

69%

26%

5%

Braskem

Others

Imports-0.6%

7.5%

4.5%

7.0 - 7.2

5.3 - 5.4

4.3

4.9

Source: Abiquim, Braskem, CMAI, Ipeadata and IBGE. 22

Per-capita Consumption of PE, PP and PVC (kg/person)

Brazil:

18 17 19 18 20 21 22 23 25

2002 2003 2004 2005 2006 2007 2008 2009 2010

6558

46

31

USA Europe Japan China

* Estimate: Resins Demand = 1.5x to 2.0x GDP

2009 2010 2011e 2015e

Brazilian's thermoplastic demand (MMton) GDP (Growth %)

Agenda

� 4Q10 and 2010 Results

� Growth with Value Creation

23

� Petrochemical Industry

� Outlook and Priorities

Outlook and Priorities

Petrochemical Market

� Political instability in Arab countries and oil price volatility

� Global petrochemical scenario continues to be marked by recovery, but oversupply is still

expected for 2011. Mitigating factors:

� Operational instability, delays on the startup of new plants and trade sanctions imposed on Iran

� Strong demand from emerging countries like China, India and Brazil

Braskem’s priorities

Strengthening of the Brazilian petrochemical and plastics production chain� Strengthening of the Brazilian petrochemical and plastics production chain

� To follow the domestic resins’ market growth: 9-10% in 2011

� Ensure capture of the identified synergies

� Adding value through the acquired assets

� Quattor: continue improvement in its operational efficiency

� Braskem America: return above capital employed

� Growth Projects

� PVC Alagoas

� Implementing project in Mexico, which is based on competitive raw materials

� To define Comperj’s configuration with Petrobras

� Expand the use of renewable feedstock

24

Meeting with Investors

4Q10 and 2010 Results

Meeting with Investors

4Q10 and 2010 Results

Carlos FadigasCEO

Marcela DrehmerCFO

Carlos FadigasCEO

Marcela DrehmerCFO

Sao Paulo, March 22, 2011Sao Paulo, March 22, 2011

4Q10 and 2010 Results4Q10 and 2010 Results