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Polymers Business Unit
Rui Chammas
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
Business and main priorities
 Polymers Business Unit concentrates the industrial, commercial,
  marketing, supply chain, human resources and planning areas of 4
  polymer families : Polyethylene, Polypropylene, Vinyls and
  Biopolymers.
 Priorities
    Health, Safety and Environment;
    To work in alliance with our customers creating value to the plastic
     industry chain, through innovative solutions and products;
    To maximize our asset efficiency;
    To optimize working capital use;
    To develop Biopolymer business;
    BRASKEM + QUATTOR synergies;
    To prepare the BRASKEM future leadership.
                                                                            4
Structure

                                                                              PE

                                                                         Marco Quirino


                                    Technology         Human
                                  and Innovation      Resources

                                  Antônio Queiroz   Silvia Spessotto
                                                                              PP

                                                                         Walmir Soller




                                                    Marketing and
                                    Controller                              Vinyls
                                                    Supply Chain

                                  Rafael Christo    Marcelo Nunes      Marcelo Cerqueira




                                                                        International
                                                                          Business

                                                                         Edison Terra



     CEO          Polymers V.P.

Bernardo Gradin   Rui Chammas
                                                                        Biopolymers

                                                                        Marcelo Nunes

                                                                                           5
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
Sales by product family

                       2010 Resins (PE, PP, PVC) Sales – MM USD
                                 Receita Bruta (US$ MM)


                                               10%

                                                                              PE
                                                                              PP
                                  34%
                                                                        56%   PVC




Total sales including Brazil and Exports from January to August 2010.
                                                                                    7
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
Polyethylene business

 2010 PE Global sales by region                                                   PE Mercosur market growth

                   Volume (kton)
             1% 2%                             Brazil                                                 5.7% p.y.
                                                                  kton                                                                    2,919
                                                                                                                                 2,717
                                                                                                              2,648     2,637
         11%                                   Mercosur                            2,324    2,305
                                                                                                     2,491

                                               Ex-Brazil                  1,984
    6%                                         Andean
                                               Countries
  11%                                          Europe

                           69%                 Africa
                                                                         2003     2004     2005     2006     2007     2008      2009     2010

                                               Asia                                        BRAZIL             MERCOSUR EX-BRAZIL




Total sales including Brazil and Exports from January to August 2010.

Source: CMAI, COPLAST and Braskem database.                                                                                                       9
Polyethylene main segments
  Automatic
                Description: Films for automatic packaging for solid and          Clients: Zaraplast,
 Packaging /
                liquid food such as cereals, grains, sugar, flour and dairy       Ruplast, Plasdil,
   General
                products.                                                         Embalo.
Purpose Films


  Industrial                                                                      Clients: FFS, CBS,
                Description: Films for industrial packaging: boxes, pallets and
Films (Shrink                                                                     Plasc, AG-Remy,
                shrinkable films for transport and protection of goods.
  /Stretch)                                                                       Packtec and Tecnoval.


                                                                                  Clients: Valplast,
  T-Shirt /     Description: Checkout supermarket bags, shopping bags and
                                                                                  Suzuki, Rioplastic and
Produce Bags    plastic bags for fruits and vegetables.
                                                                                  Sol Embalagens.


                                                                                  Clients: Logoplaste,
                Description: Cleaning product packaging, pharmaceuticals,
Blowmolding                                                                       Sinimplast, Graham,
                food packaging, chemicals, toys, technical parts, drums.
                                                                                  Unipac and Chevron.


                                                                                  Clients: Inplasul,
                Description: Cast films for disposal diapers, packaging for
Special Films                                                                     Maxiplast, Tredegar,
                frozen meat, laminated films and hygienic films.
                                                                                  PrismaPack and Nold.


                                                                                  Clients: Fortlev,
Rotomolding     Description: Water tanks, toys, technical parts.                  Isdralit, Rotoplas and
                                                                                  Tigre.

                                                                                                           10
Polyethylene market split




Note: 2009 data.                11
Polyethylene – new developments

    NEW PE GRADE FOR GEOMEMBRANE
                                               GRAIN BAGS
    FILM (Under development)
                                               Partner: Pacifil
    Partners: Nortene, Maccaferri, Roma
                                               Innovation: Lower cost and faster
    and Neoplastic
                                               installation with flexible silos for grain
    Innovation: Better performance grade
                                               storage
    to avoid soil contamination in landfills
                                               Target Sales: 5 kton/year
    Target Sales: 12 kton/year




    ROTOMOLDED MANHOLE
                                               LARGE ROTOMOLDED WATER TANKS
    Partners: Fortlev, Kapass, Asperbras
                                               Partner: Fortlev
    and Brinquedos Bandeirantes
                                               Innovation: Fiberglass tank
    Innovation: Concrete replacement with
                                               replacement
    lower cost and faster installation
                                               Target Sales: 32 kton/year
    Target Sales: 9 kton/year




                                                                                            12
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
Polypropylene business

 2010 PP Global sales by region                                                  PP Mercosur market growth
                    Volume (kton)
     6%       0% 3%
                                              Brazil                                                     6.2% p.y.
8%                                                             kton
                                                                                                                                1,615
                                                                                                                                         1,731
                                                                                                              1,536    1,511
                                              Mercosur                                    1,303    1,362
                                                                                 1,276
                                              Ex-Brazil                 1,134
                                              Andean
     6%
                                              Countries
                                              Europe

                          77%                 Africa
                                                                      2003      2004     2005     2006      2007      2008     2009     2010
                                              Asia
                                                                                       BRAZIL              MERCOSUR EX-BRAZIL




Total sales including Brazil and Exports from January to August 2010.
Source: CMAI, COPLAST and Braskem database.                                                                                                      14
Polypropylene main segments
                                                                                Clients: Borealis,
                           Compound producers for automotive industry,
              Description: Compounding production and automotive parts
Compounding                                                                     Basell, Styron and
              producers. parts, PPR pipes and SPC application.
              automotive
                                                                                Produmaster.


                                                                                Clients: Propex, Têxtil
              Description: Bags for fertilizers, flour and sugar, geotextiles
   Raffia     Description:                                                      Oeste, Embrasa,
              and bulk bags.
                                                                                Zaraplast.


                                                                                Clients: Fitesa-
              Description: Hygiene disposables (diapers and pads) and
 Nonwoven     Description:                                                      Fiberweb, Companhia
              Durables (mattress, furniture).
                                                                                Providência.



              Description: Bioriented     Polypropylene   Film   for   tapes,   Clients: Polo, Vitopel,
   BOPP       Description:
              packaging and labels.                                             3M, Valfilm.



                                                                                Clients: Cartonale,
              Description: Producers of niche market such as sheets, DVD
   Niche      Description:                                                      Novodisc, Magic Toys,
              cases, toys, blow molded packaging and plastic furniture.
                                                                                Tramontina.


              Description: Houseware (food storage containers, garbage          Clients: Bettanin,
Houseware /
              Description: handles) and buckets for food and chemical
              can, knife                                                        Clients:.
                                                                                Jaguar, Tramontina,
  Buckets
              industry.                                                         Plasútil.

                                                                                                          15
Polypropylene market split




Note: 2009 data.                 16
Polypropylene – new developments
    NEW PP WASHING MACHINES                                         PLASTIC GAS VESSEL
                                                                    (Under Development)
    Partners: Electrolux and Colormaq
    Innovation: Steel and PET replacement                           Partner: Liquigás
    in washing machine body part (lower                             Innovation: Steel replacement to
    cost and weight)                                                reduce weight
    Target Sales: 6 kton/year                                       Target Sales: 1.8 kton/year



    PP BAGS FOR COFFEE
                                                                    LOW VOC AUTOMOTIVE GRADE
    (To be launched)
                                                                    Partner: Lyondell-Basell Brazil
    Partner: Nova Plast
                                                                    Innovation: High performance grade
    Innovation: Better flavor and aroma
                                                                    for automotive compounds.
    preservation for exported coffee
                                                                    Target Sales: 4 kton/year
    Target Sales: 2 kton/year




                                PP FOR SEALING LAYER IN BOPP

                                Partners: Vitopel, Polo, OPP Film, BOPP
                                del Ecuador
                                Innovation: Specialty grade for flexible
                                packaging (imports replacement)
                                Target Sales: 7 kton/year


                                                                                                         17
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
PVC business

              PVC Mercosur market growth
                                                                               PVC sales are concentrated in
                                       8.3% p.y.                               Brazil. We are experiencing an
kton                                                                  1,195

                                            934
                                                    1,074    1,048             important market growth which
         683
                 755     776
                                  833
                                                                               consolidates our expansion
                                                                               decision.

                                                                                      PVC expansion - Alagoas
       2003    2004    2005     2006      2007     2008     2009     2010     Operational start-up : 1st half 2012
                       BRAZIL            MERCOSUR EX-BRAZIL                    Expansion of 200 kton/y 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



Total sales including Brazil and Exports from January to August 2010.
Source: CMAI, COPLAST and Braskem database.                                                                                          19
PVC main segments
            Description: Pipes for water and sewage domestic networks,        Clients: Tigre,
Pipes and
            irrigation systems, agricultural and road drainage, electrical    Amanco, Tubozan,
 Fittings
            conduits.                                                         Nicoll, Krona, Plastilit.


            Description: Compounds manufacturers. Main applications           Clients: Karina,
Compounds   are footwear and cables, but it supplies almost all               Dacarto, Cortevivo,
            applications.                                                     PVTEC.


            Description:     Liners, window frames, doors, furniture,         Clients: Vipal, Tigre,
 Profiles   technical profile (hospital handrail), household appliances,      Araforros, Rehau,
            PVC concrete building system, communication panels.               Darthel, PVTEC.



            Description: Communication panels, truck tarpaulins,              Clients: Sansuy,
Laminates   swimming pools, tanks, flooring and wall cladding, credit         Plastwal, Cipatex,
            cards, blister packaging.                                         Simbal, Vulcan, FLC.



            Description: Plastic shoes (like “Melissa”), soles of shoes and   Clients: Grendene,
Footwear
            slippers strips.                                                  Alpargatas.




 Flexible   Description: Hoses for household, industrial, irrigation and      Clients: Ibirá, AFA,
  Hoses     fuel.                                                             Plastmar.
                                                                                                          20
PVC market split




Note: 2009 data.       21
PVC – new developments

    CONCRETE/PVC BUILDING SYSTEM                 PVC ROOF TILES (To be launched)

    Partners: Global Housing International,      Partners: Not disclosed now due to
    Royal Building Systems, and others           secrecy agreement
    Innovation: Building system with hollow      Innovation: Asbestos and Clay roof tiles
    PVC profiles filled with concrete            replacement
    Target Sales: 30 kton/year                   Target Sales: 120 kton/year




    PVC WINDOWS
                                                 TRANSLUCENT PVC ROOF TILES
    Partners: Claris, Primeira Linha, Veka and
                                                 Partners: Fortlev
    Weiku
                                                 Innovation: Fiberglass roof tiles
    Innovation: Increase PVC window profile
                                                 replacement
    application in the market
                                                 Target Sales: 5 kton/year
    Target Sales: 2 kton/year




                                                                                            22
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions
Green polyethylene
First Green Plastic Certified in the World
               POLYETHYLENE
                               Location: Triunfo - RS
                               Capacity: 200 kton/y
                               Startup: September 2010
                               Consumption of 460,000 m³ of ethanol per year
                               75% of the ethanol supply is already contracted
                               Demand 3x higher than the installed capacity
Main Clients and Partners




                                                  Partnership in R&D – Renewable Polymers
                                                   Green PE trading in Asia

                                                                                             24
Green polyethylene
Sales by Region - Forecast
(volume)                     Europe
                                      Asia




                               50%
          Americas




                                       25%
              25%




                                             25
Agenda

 Polymers Business Unit

 Polymers Market
       Polyethylene
       Polypropylene
       PVC

 Biopolymers - Green PE

 Questions

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  • 2. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 3. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 4. Business and main priorities  Polymers Business Unit concentrates the industrial, commercial, marketing, supply chain, human resources and planning areas of 4 polymer families : Polyethylene, Polypropylene, Vinyls and Biopolymers.  Priorities  Health, Safety and Environment;  To work in alliance with our customers creating value to the plastic industry chain, through innovative solutions and products;  To maximize our asset efficiency;  To optimize working capital use;  To develop Biopolymer business;  BRASKEM + QUATTOR synergies;  To prepare the BRASKEM future leadership. 4
  • 5. Structure PE Marco Quirino Technology Human and Innovation Resources Antônio Queiroz Silvia Spessotto PP Walmir Soller Marketing and Controller Vinyls Supply Chain Rafael Christo Marcelo Nunes Marcelo Cerqueira International Business Edison Terra CEO Polymers V.P. Bernardo Gradin Rui Chammas Biopolymers Marcelo Nunes 5
  • 6. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 7. Sales by product family 2010 Resins (PE, PP, PVC) Sales – MM USD Receita Bruta (US$ MM) 10% PE PP 34% 56% PVC Total sales including Brazil and Exports from January to August 2010. 7
  • 8. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 9. Polyethylene business 2010 PE Global sales by region PE Mercosur market growth Volume (kton) 1% 2% Brazil 5.7% p.y. kton 2,919 2,717 2,648 2,637 11% Mercosur 2,324 2,305 2,491 Ex-Brazil 1,984 6% Andean Countries 11% Europe 69% Africa 2003 2004 2005 2006 2007 2008 2009 2010 Asia BRAZIL MERCOSUR EX-BRAZIL Total sales including Brazil and Exports from January to August 2010. Source: CMAI, COPLAST and Braskem database. 9
  • 10. Polyethylene main segments Automatic Description: Films for automatic packaging for solid and Clients: Zaraplast, Packaging / liquid food such as cereals, grains, sugar, flour and dairy Ruplast, Plasdil, General products. Embalo. Purpose Films Industrial Clients: FFS, CBS, Description: Films for industrial packaging: boxes, pallets and Films (Shrink Plasc, AG-Remy, shrinkable films for transport and protection of goods. /Stretch) Packtec and Tecnoval. Clients: Valplast, T-Shirt / Description: Checkout supermarket bags, shopping bags and Suzuki, Rioplastic and Produce Bags plastic bags for fruits and vegetables. Sol Embalagens. Clients: Logoplaste, Description: Cleaning product packaging, pharmaceuticals, Blowmolding Sinimplast, Graham, food packaging, chemicals, toys, technical parts, drums. Unipac and Chevron. Clients: Inplasul, Description: Cast films for disposal diapers, packaging for Special Films Maxiplast, Tredegar, frozen meat, laminated films and hygienic films. PrismaPack and Nold. Clients: Fortlev, Rotomolding Description: Water tanks, toys, technical parts. Isdralit, Rotoplas and Tigre. 10
  • 12. Polyethylene – new developments NEW PE GRADE FOR GEOMEMBRANE GRAIN BAGS FILM (Under development) Partner: Pacifil Partners: Nortene, Maccaferri, Roma Innovation: Lower cost and faster and Neoplastic installation with flexible silos for grain Innovation: Better performance grade storage to avoid soil contamination in landfills Target Sales: 5 kton/year Target Sales: 12 kton/year ROTOMOLDED MANHOLE LARGE ROTOMOLDED WATER TANKS Partners: Fortlev, Kapass, Asperbras Partner: Fortlev and Brinquedos Bandeirantes Innovation: Fiberglass tank Innovation: Concrete replacement with replacement lower cost and faster installation Target Sales: 32 kton/year Target Sales: 9 kton/year 12
  • 13. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 14. Polypropylene business 2010 PP Global sales by region PP Mercosur market growth Volume (kton) 6% 0% 3% Brazil 6.2% p.y. 8% kton 1,615 1,731 1,536 1,511 Mercosur 1,303 1,362 1,276 Ex-Brazil 1,134 Andean 6% Countries Europe 77% Africa 2003 2004 2005 2006 2007 2008 2009 2010 Asia BRAZIL MERCOSUR EX-BRAZIL Total sales including Brazil and Exports from January to August 2010. Source: CMAI, COPLAST and Braskem database. 14
  • 15. Polypropylene main segments Clients: Borealis, Compound producers for automotive industry, Description: Compounding production and automotive parts Compounding Basell, Styron and producers. parts, PPR pipes and SPC application. automotive Produmaster. Clients: Propex, Têxtil Description: Bags for fertilizers, flour and sugar, geotextiles Raffia Description: Oeste, Embrasa, and bulk bags. Zaraplast. Clients: Fitesa- Description: Hygiene disposables (diapers and pads) and Nonwoven Description: Fiberweb, Companhia Durables (mattress, furniture). Providência. Description: Bioriented Polypropylene Film for tapes, Clients: Polo, Vitopel, BOPP Description: packaging and labels. 3M, Valfilm. Clients: Cartonale, Description: Producers of niche market such as sheets, DVD Niche Description: Novodisc, Magic Toys, cases, toys, blow molded packaging and plastic furniture. Tramontina. Description: Houseware (food storage containers, garbage Clients: Bettanin, Houseware / Description: handles) and buckets for food and chemical can, knife Clients:. Jaguar, Tramontina, Buckets industry. Plasútil. 15
  • 17. Polypropylene – new developments NEW PP WASHING MACHINES PLASTIC GAS VESSEL (Under Development) Partners: Electrolux and Colormaq Innovation: Steel and PET replacement Partner: Liquigás in washing machine body part (lower Innovation: Steel replacement to cost and weight) reduce weight Target Sales: 6 kton/year Target Sales: 1.8 kton/year PP BAGS FOR COFFEE LOW VOC AUTOMOTIVE GRADE (To be launched) Partner: Lyondell-Basell Brazil Partner: Nova Plast Innovation: High performance grade Innovation: Better flavor and aroma for automotive compounds. preservation for exported coffee Target Sales: 4 kton/year Target Sales: 2 kton/year PP FOR SEALING LAYER IN BOPP Partners: Vitopel, Polo, OPP Film, BOPP del Ecuador Innovation: Specialty grade for flexible packaging (imports replacement) Target Sales: 7 kton/year 17
  • 18. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 19. PVC business PVC Mercosur market growth PVC sales are concentrated in 8.3% p.y. Brazil. We are experiencing an kton 1,195 934 1,074 1,048 important market growth which 683 755 776 833 consolidates our expansion decision. PVC expansion - Alagoas 2003 2004 2005 2006 2007 2008 2009 2010 Operational start-up : 1st half 2012 BRAZIL MERCOSUR EX-BRAZIL  Expansion of 200 kton/y 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 Total sales including Brazil and Exports from January to August 2010. Source: CMAI, COPLAST and Braskem database. 19
  • 20. PVC main segments Description: Pipes for water and sewage domestic networks, Clients: Tigre, Pipes and irrigation systems, agricultural and road drainage, electrical Amanco, Tubozan, Fittings conduits. Nicoll, Krona, Plastilit. Description: Compounds manufacturers. Main applications Clients: Karina, Compounds are footwear and cables, but it supplies almost all Dacarto, Cortevivo, applications. PVTEC. Description: Liners, window frames, doors, furniture, Clients: Vipal, Tigre, Profiles technical profile (hospital handrail), household appliances, Araforros, Rehau, PVC concrete building system, communication panels. Darthel, PVTEC. Description: Communication panels, truck tarpaulins, Clients: Sansuy, Laminates swimming pools, tanks, flooring and wall cladding, credit Plastwal, Cipatex, cards, blister packaging. Simbal, Vulcan, FLC. Description: Plastic shoes (like “Melissa”), soles of shoes and Clients: Grendene, Footwear slippers strips. Alpargatas. Flexible Description: Hoses for household, industrial, irrigation and Clients: Ibirá, AFA, Hoses fuel. Plastmar. 20
  • 21. PVC market split Note: 2009 data. 21
  • 22. PVC – new developments CONCRETE/PVC BUILDING SYSTEM PVC ROOF TILES (To be launched) Partners: Global Housing International, Partners: Not disclosed now due to Royal Building Systems, and others secrecy agreement Innovation: Building system with hollow Innovation: Asbestos and Clay roof tiles PVC profiles filled with concrete replacement Target Sales: 30 kton/year Target Sales: 120 kton/year PVC WINDOWS TRANSLUCENT PVC ROOF TILES Partners: Claris, Primeira Linha, Veka and Partners: Fortlev Weiku Innovation: Fiberglass roof tiles Innovation: Increase PVC window profile replacement application in the market Target Sales: 5 kton/year Target Sales: 2 kton/year 22
  • 23. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions
  • 24. Green polyethylene First Green Plastic Certified in the World POLYETHYLENE  Location: Triunfo - RS  Capacity: 200 kton/y  Startup: September 2010  Consumption of 460,000 m³ of ethanol per year  75% of the ethanol supply is already contracted  Demand 3x higher than the installed capacity Main Clients and Partners Partnership in R&D – Renewable Polymers  Green PE trading in Asia 24
  • 25. Green polyethylene Sales by Region - Forecast (volume) Europe Asia 50% Americas 25% 25% 25
  • 26. Agenda  Polymers Business Unit  Polymers Market  Polyethylene  Polypropylene  PVC  Biopolymers - Green PE  Questions