1. New York
October 23rd, 2006
José Carlos Grubisich

2. Disclaimer
Forward looking statements
This presentation contains forward-looking statements. Such statements are not
statements of historical facts, and reflect the beliefs and expectations of Braskem’s
management. The words “anticipates”, “wishes”, “expects”, “estimates”, “intends”,
“forecasts”, “plans”, “predicts”, “projects”, “targets” and similar words are intended
to identify these statements. Although Braskem believes that expectations and
assumptions reflected in the forward-looking statements are reasonable based on
information currently available to Braskem’s management, Braskem cannot guarantee
future results or events.
Forward-looking statements included in this presentation speak only as of the date on
which they are made (June 30, 2006), and the Company does not undertake any
obligation to update them in light of new information or future developments.
Braskem shall not be responsible for any transaction or investment decisions that are
taken based on information included in this presentation.
2

3. Competitive Positioning
Business Strategy
Sustainability
Growth with Value Creation

4. Competitive Positioning
Business Strategy
Sustainability
Growth with Value Creation

5. Braskem’s key figures
Largest petrochemical company in Latin America
Gross Revenue* Ebitda* Total Assets
US$ 6.5 bi US$ 660 mi US$ 7 bi
Net Debt / Ebitda* Debt / Equity
2.97 x 57 / 43
* Last twelve months (LTM) as of June 30, 2006
5

6. Braskem’s key figures
Significant and consistent improvement
Gross Revenue US$ million EBITDA US$ million
6,252 871 851
4,900
3,688 581
3,013 457
28% 23%
CAGR CAGR
2002 2003 2004 2005 2002 2003 2004 2005
Source: Braskem
6

7. Braskem’s key strategic drivers
Solid business model based on competitive integration in
the value chain
COMPETITIVE INTEGRATION
Extraction 1st generation
1st generation 2nd generation
2nd generation 3rd generation
3rd generation
Value Added
Naphtha
Condensate
Competitiveness
Raw materials Basic petrochemicals Thermoplastic resins Plastic Converters
Market Cost Technological
Leadership Competitiveness Autonomy
#1 Petrochemical Integration Know-How
Company in Latin with Scale
America
7

8. Market leadership in the region as a key
driver for Value Creation
Strengthened with the acquisition of Politeno
Market-Share in Brazil – 1H06
PVC % PE After the acquisition %
39%
54%
39% 44%
BRASKEM 17%
7%
IMPORTS
PP % OTHERS PE Before the acquisition %
30%
42%
51% 52%
18%
7%
Source: Braskem 1H06
8

9. Cost Competitiveness as a key driver for value creation
Largest Producer in the region
6.1 MM tons in total annual capacity of petrochemical and
chemical products
Production Capacity 000 tons / year
3,605
PVC
515
PP
580
PE
Ethylene
1,230
1,400
1,135
1,060
700
700 685 630 561
1,280 540 150
130 85 160
700
520 550 476
500
Braskem Dow Copesul1 Rio Polímeros Ipiranga Suzano Unipar / PQU Solvay Triunfo
1. Braskem jointly controls Copesul with the Ipiranga Group
Source: CMAI and Braskem 2006
9

10. Cost Competitiveness as a key driver for value creation
Increased Efficiency and productivity with Braskem +
R$ MM / year
420
297
29% Operational reliability
R$ 359 million gains already
Variable Cost
28% captured by Sept’06.
19% Utilities Production
Remaining initiatives under
Raw Material Yield
12% implementation could lead to the
7% Fixed Cost conclusion of the project one year
5% Others
ahead of schedule.
Captured by Target
June, 2006
Note: Annualized and recurring basis
10

11. Cost Competitiveness as a key driver for Value Creation
More streamlined operations with Fórmula Braskem
A new integrated management
system encompassing all
business processes
R$ 130 million invested in the project
Successfully implemented in October 2006
Expected NPV of R$ 260 million
Expected Savings
28%
23%
19%
16%
8%
6%
Commercial Supply Maintenance Financial Operations Projects
Chain
11

12. Technology as a key driver for value creation
Know-how and competencies leveraging Braskem’s
differentiation in the value chain
US$ 158 million in assets
171 researchers
141 patent registrations filed
7 pilot plants
Global technology agreement with BASELL
US$ 25 million of value created with technology
supplied to Petroquímica Paulínia
11% of the resins sold in 2005 were launched in
the last two years
12

13. Technology as a key driver for value creation
New markets and products developed in partnership with Clients
Plastic is increasingly Recently developed
Higher Value Added Plastic
replacing other materials special resins
Substitution of glass by Asbestos substitution in Thermoplastics liners
polyethylene in the cream cheese concrete reinforcement (UHMWHDPE) for trucks
bowls for roof tiles
Replacement of polystyrene by
polypropylene in small cups for
coffee
13

14. Technology as a key driver for value creation
New frontiers of development
Nanotechnology
– 1st Brazilian Petrochemical company to file a patent
– 3 patents already filed
– 1st product to be launched in November 2006: new PP grade
Green Polymer
– Manufacturing of resins based on renewable sources of raw material (sugar
cane)
– Technology to convert Ethanol into Ethylene and propylene already in
place
– Biopolymer: biodegradable green polymer
14

15. Competitive Positioning
Business Strategy
Sustainability
Growth with Value Creation

16. Our Strategic Intent
Growth with value creation
2012
2002
To rank amongst the TOP
10 global petrochemical
companies in market
To become capitalization
Latin America’s leader
in thermoplastic resins
16

17. Growth with value creation
Expand production and
Strengthen market
sales outside of South
leadership in Brazil
America, capturing
through consolidation in
value and creating a
Internationalization Organic Growth the local market,
growth platform for the
capturing synergies
future
Value Creation
Enhancement of the
Selective Growth
Aromatics Chain
Consolidate market
Leverage aromatics
position in key
production chain by
products in Latin
broadening its portfolio
America and
of products and
guarantee competitive
services in the local
sources of raw
market
material
17

18. Organic Growth
Dynamic and fast growing domestic market
Consumption growth in Brazil Strong increase in domestic
Polyethylene, Polypropylene and PVC consumption in 2006
Ton (000) 3,436 8M06 Compared to 8M05
+18%
3,156
+12% +13%
2,834
2,293
+7%
1,601
7%
CAGR
1993 1996 1999 2002 2005 PE PVC PP Resins
Source: Abiquim
18

19. Organic Growth
Consolidation as an opportunity for value creation
Merger of Polialden into Braskem
– Approved on May 31, 2006, it completed the integration process
that was originally designed when Braskem was created
Politeno’s Acquisition
– Over US$ 100 million in estimated synergies
– Main advantages for Braskem
• 80% ethylene integration in the Camaçari complex
• 360 K tons additional production capacity for PE
• A complementary portfolio of products and customer base
Braskem is prepared to play an active role in the consolidation of the
petrochemical sector in Brazil
19

20. Organic Growth
Increasing PP capacity using competitive raw material
Petroquímica Paulínia
– JV with Petrobras
– Total investment of U$ 310 million
Paulínia – Additional Capacity
• +350 k ton / year
– Location
• Paulínia, State of São Paulo
– Provisional environmental license
recently obtained
– Start-up in 1Q08
Source: Braskem (2006)
20

21. Organic Growth
700 k ton of potential capacity additions
Projects being considered for future
implementation:
Alagoas
Bahia – DBN
PVC +150 k ton / year
PE +100 k ton / year
Ethylene +150 k ton / year
– Greenfield
PP Bahia +300 k ton / year
Source: Braskem (2006)
21

22. Selective Growth
Ensuring access to competitive feedstock
Venezuela Jose Olefins Complex*
– MOU signed with Pequiven (April, 2006);
– Estimated investments between US$ 1.5
and US$ 2.5 billion
– 1.2 million tons/year natural gas-based
cracker, integrated with the production of
polyethylene and other second generation
products
– Mobilization of a working group for the
project with the start up of a branch office
in Venezuela
PP Plant in El Tablazo*
– JV with Pequiven
– Production capacity of 400 kton / year
– Investments of US$ 370 million
* To be presented to the Board
22

23. Selective Growth
A new competitive integrated Petrochemical Complex in Venezuela
Our project will leverage on
infrastructure already available
in the Jose Industrial Complex
23

24. Enhancement of aromatic chain
Adding value through existing production streams
Isoprene debottlenecking
(November 2006)
– Investment: US$ 29 Million
Bahia – Additional Capacity: + 9 k ton / year (+50%)
– Rate of Return: 49%
– Location: Camaçari, State of Bahia
Paraxylene capacity increase, combined
with a potential downstream project to
produce PTA
ETBE production as an alternative to MTBE
Source: Braskem (2006)
24

25. Internationalization
Strengthening our presence in key international markets
Europe
Rotterdam
Exports surpass US$
US$ 1 billion million
~1,200
USA
Delaware Asia* 959
Shanghai
Venezuela
Caracas 710
617
30%
415 CAGR 1H
Argentina
613
Buenos Aires
Closer relationship with international customers 2002 2003 2004 2005 2006e
23% 25% 19% 20% 24%
Direct sales through local distribution
1H06
% of net revenue
Export margins increase
* Future
25

26. Competitive Positioning
Business Strategy
Sustainability
Growth with Value Creation

27. High levels of Corporate Governance
Level 1 Company in BOVESPA with commitment to migrate to Level 2
100% tag-along rights
SOx Early Adopter - June 2006
Code of Conduct: sets values, principles and practices governing corporate behavior
Pre-established corporate policies:
– Trading of securities
– Financial management
– Insurance and Guarantees
– Health, Safety and Environment
Four independent members at the Board
Existing committees
– Enhanced Fiscal Council
– Finance & Investment
– People & Organization
– Strategy & Communication
27

28. Braskem’s Human Capital
Over 3,000 employees proud of their workplace
Strong Culture values
– Transparent communication
– Self-development
– Entrepreneurship
– Results driven approach
– Profit Sharing
Talent atraction & retention
– Trainee Program: 26 trainees in 2006 and 24 in 2005. Latest selection included over 18,000
candidates
– Internship Program: 94 interns in 2006 and 100 in 2005. Latest selection included over 12,000
people
MBA Braskem: 70 leaders post graduated in a program developed in partnership with
Fundação Getúlio Vargas (SP) focused on the petrochemical business
One of the best places to work in Brazil
(Exame – Brazilian magazine)
28

29. Social responsibility
Strong commitment with surrounding communities
Corporate Responsibility
– Braskem is committed to the well being of its
surrounding communities through a number of
programs directed towards
• Environmental education
• Social inclusion
• Cultural promotion
Braskem follows the guidelines from:
– ILO (International Labor Organization)
– OECD (Organization for Economic Co-Operation
and Development)
– UN’s Global Compact and the UN Millennium
Development Goals
Investments of R$ 10 million in social projects in 2005
29

30. Environmental Responsibility
1st Brazilian company to sign the
“International Statement of Cleaner Production”
Safety performance in line with the best petrochemical
companies worldwide
– 0.3 accident with lost workday per million man hour
– 1.1 accident with/without lost workday per million man hour
All industrial plants are ISO 14001 certified
Continuous improvement in environmental performance
– 2% reduction in water consumption
(~ to the consumption of 12,000 people per year)
– 11% reduction in liquid effluents
(~ to the sewage of 33,000 people per year)
– 13% reduction in industrial waste
(~ to the garbage of 21,000 people per year)
30

31. Competitive Positioning
Business Strategy
Sustainability
Growth with Value Creation

32. Commitment to Grow with Value Creation
Market leadership in the region for PE, PP and PVC: Organic Growth and
Consolidation
Strong growth potential over the next 5 years: from 6 to 9 million tons
production capacity, which includes doubling resins from 2.3 to 4.7 million tons
Greenfield projects in the region aimed at securing access to competitive
feedstock: Selective Growth
Solid financial structure coupled with Capital Discipline: Capital Expenditures
in line with depreciation and amortization
Additional cash generation through competitiveness
improvement programs:
Innovation and technology as a key value driver
100% tag along to all shareholders and high standards of corporate governance
Social and environmental responsibility
32

33. New York
October 23rd, 2006
José Carlos Grubisich