Presentation targeting roadshow

Meeting with InvestorsMeeting with Investors

May 2007May 2007

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Forward-looking StatementsForward-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 they are made (March 31, 2007), 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.

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Our Vision Our Vision

2012

2002

To rank amongst theTo rank amongst the TOP 10 global TOP 10 global petrochemical petrochemical

companies in market companies in market capitalizationcapitalization

To becomeTo becomeLatin AmericaLatin America’’s leaders leaderin thermoplastic resinsin thermoplastic resins

2006

2007

PolitenoPoliteno

Ipiranga /Ipiranga /CopesulCopesul

TurnaroundTurnaround

4

Strategic Drivers Opportunities for Growth with Value Creation Strategic Drivers Opportunities for Growth with Value Creation

• Politeno acquisition

• Acquisition of the Petrochemical assets of the Ipiranga Group (Ipiranga and Copesul)

• Debottleneckings in PE and PVC

• New PP plant in Camaçari

• Start-up of overseas commercial operations and distribution network

• Investment opportunities in the Americas

• Petroquímica Paulínia

• Projects in Venezuela:

•PP plant

•Jose Olefins Complex – 1st and 2nd generation

• Capacity increases in isoprene and paraxylene

• Conversion of MTBE to ETBE

• Hydrocarbon resins

• Green polymers

Organic Growth

Selective GrowthEnhancement of the Brazilian Production

Chains

Internationalization

Value Creation

5

SolidBusiness Model

Ipiranga Acquisition

Compelling Market Outlook

Upcoming Opportunities

for Value Creation

A Unique Investment OpportunityA Unique Investment Opportunity

6


Compelling Market Outlook

7

Brazil: a growing and dynamic market for thermoplastic resins With high historical growth rates… Brazil: a growing and dynamic market for thermoplastic resins With high historical growth rates…

Overall Market Consumption for Polyethylene, Polypropylene and PVC

* Compound Annual Growth Rate

Thousands of tons

Source: Brazilian Chemical Industry Association - Abiquim

1,596

2,135

2,5292,829

3,0143,064

3,4403,741

1993 1995 1997 1999 2001 2003 2005 2006

7%CAGR *

9%

8

Brazil: a growing and dynamic market for thermoplastic resins …and strong elasticity to the GDP growth Brazil: a growing and dynamic market for thermoplastic resins …and strong elasticity to the GDP growth

Source: Braskem and Abiquim

2.9

Elasticity: 2.4x GDP growth

PVCPVC

5.7 6.1

PolyethylenePolyethylene

9.1

PolypropylenePolypropylene

6.8

ResinsResins

Annual Growth Rates Annual Growth Rates –– Brazil (1994 through 2006)Brazil (1994 through 2006) %%

GDPGDP

9Source: Braskem. Figures do not consider the effects of the acquisition of Ipiranga.

2002

415

2003

617

2004

710

2005

959

2006

1,382

Gross RevenueGross Revenue US$ millionUS$ million ExportsExports US$ millionUS$ million

2002

3,013

2003

3,688

2004

4,900

2005

6,252

2006

6,893

23%CAGR 35%

CAGR

Brazil: a growing and dynamic market for thermoplastic resins Braskem: Solid and consistent growth Brazil: a growing and dynamic market for thermoplastic resins Braskem: Solid and consistent growth

10Source: Braskem

Outlook for 2007:

– Sustained global economic growth

– In Brazil:• Gradual reduction in interest

rates• Increase in investments in

infrastructure• Growth in domestic demand

coupled with higher expected GDP growth

• Increase in available income

Braskem: consumption-driven player with a strong customer basis Differentiated position to benefit from the growth of the Brazilian market

Braskem: consumption-driven player with a strong customer basis Differentiated position to benefit from the growth of the Brazilian market

Market segmentation for Braskem’s resins in 2006

* Includes personal hygiene, infrastructure, electronics and others

PACKAGING FOR FOOD

24%

CONSUMER GOODS (NON-DURABLE)

17%

CONSTRUCTION

17%

OTHERS *

20%

RETAIL8%

AGRICULTURE

8%

COSMETICS AND PHARMACEUTICALS

3%

% of Revenue% of Revenue

3%AUTOMOTIVE

11

Brazil: a growing and dynamic market for thermoplastic resins Solid demand growth for thermoplastic resins

Brazil: a growing and dynamic market for thermoplastic resins Solid demand growth for thermoplastic resins

Demand growth approximately 1.2 million tons for the next 4 years

3.74.0 4.2 4.5

4.8

Source: Braskem and LCA consultancy

Domestic sales + imports

mn ton

315 264 282 303

Growth 2007-2010 (k ton)Market growth (k ton)

20102009200820072006

1

2

3

4

5

7.2% CAGR

391 391

530530

243243

PE

PP

PVC

0

100

200

300

2010200920082007

+ 8 %

12


SolidBusiness Model

13

33rdrd generationgenerationExtractionExtraction 11stst generationgeneration 22ndnd generationgeneration11stst generationgeneration 22ndnd generationgenerationExtraction 3rd generation

COMPETITIVE INTEGRATION

Value AddedValue Added

CompetitivenessCompetitiveness

Braskem: Solid business model based on competitive integration in the Value Chain Braskem: Solid business model based on competitive integration in the Value Chain

#1 Petrochemical #1 Petrochemical Company in Latin Company in Latin

AmericaAmerica

MarketMarketLeadershipLeadership

Integration with Scale

Integration with Scale

Cost Cost CompetitivenessCompetitiveness

Know-HowKnow-How

Technological Technological AutonomyAutonomy

NaphthaNaphtha

CondensateCondensate

Thermoplastic resins Plastic ConvertersRaw materials Basic petrochemicals

Level of integration reaches 80% for ethylene and 85% for propylene

14

Braskem: Cost Competitiveness Leading producer in the region with scale surpassing all other players

Braskem: Cost Competitiveness Leading producer in the region with scale surpassing all other players

More than 10 million tons of petrochemical and chemical products in 2007, 5.6 million of which ethylene and resins

Source: CMAI and Braskem 2007

Ethylene

PVC

PE

PP

685

Suzano

000 t / ano

Braskem

1,8151,815

760

515515

5,570

2,4802,480

Production CapacityProduction Capacity 000 tons / year000 tons / year

700

Dow

700700

700700

1,400

Rio Polímeros

520520

1,060

540540 561

Solvay

476476

Triunfo

160620

Unipar / PQU

500500

120120

8585

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Braskem: Market leadership in Brazil Number 1 petrochemical company in the region Braskem: Market leadership in Brazil Number 1 petrochemical company in the region

OTHERS

IMPORTS

PPPP %%

8%

51% 41%41%

12%

46% 42%42%53%53%

7%

40%

PVCPVC %% PE + PP + PVCPE + PP + PVC %%

47%

16%

37%37%

PEPE %%

Source: Braskem / Brazilian Chemical Industry Association – Mar 07; Braskem´s market share before acquisition of Ipiranga

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Spreads over Asian prices Spreads over Asian prices PVC: International and BraskemPVC: International and Braskem

PP: International and Braskem PP: International and Braskem PE: International and BraskemPE: International and Braskem

Braskem: Strong pricing power Spreads over international prices above 30% Braskem: Strong pricing power Spreads over international prices above 30%

Base 100Base 100

%%March 2007March 2007

Source: CMAI / Braskem

PPPP

PEPE + 32%

+ 33%

PVCPVC + 38%

167%

126% 127%

100%

jan/0

5fev

/05

mar/0

5ab

r/05

mai/05

jun/0

5jul

/05

ago/

05se

t/05

out/0

5no

v/05

dez/0

5jan

/06

fev/0

6mar

/06

abr/0

6mai/

06jun

/06

jul/0

6ag

o/06

set/0

6ou

t/06

nov/

06de

z/06

jan/0

7fev

/07

mar/0

7

PEAD - Braskem (MI) Base 100

PEAD - Ásia (CMAI) Base 100

126%

100%

168%

142%

jan/0

5fev

/05

mar/0

5ab

r/05

mai/05

jun/0

5jul

/05

ago/

05se

t/05

out/0

5no

v/05

dez/0

5jan

/06

fev/0

6mar

/06

abr/0

6mai/

06jun

/06

jul/0

6ag

o/06

set/0

6ou

t/06

nov/0

6de

z/06

jan/0

7fev

/07

mar/0

7

PP - Ásia (CMAI) Base 100

PP - Braskem (MI) Base 100

101%

100%

140%152%

jan/0

5fev

/05

mar/0

5ab

r/05

mai/05

jun/0

5jul

/05

ago/

05se

t/05

out/0

5no

v/05

dez/0

5jan

/06

fev/0

6mar

/06

abr/0

6mai/

06jun

/06

jul/0

6ag

o/06

set/0

6ou

t/06

nov/

06de

z/06

jan/0

7fev

/07

mar/0

7

PVC - Ásia (CMAI) Base 100

PVC - Braskem (MI) Base 100

Base 100Base 100

Base 100Base 100

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Braskem: Innovation and Technology as key drivers for Value Creation Braskem: Innovation and Technology as key drivers for Value Creation

Over US$ 160 million in R&D assets

171 researchers

8 pilot plants

151 patent registrations filed

Extended knowledge network with Universities

20% of sales come from new products launched over the last 3 years

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Braskem: Innovation and Technology New frontiers of development Braskem: Innovation and Technology New frontiers of development

Green Polymer– Manufacture of resins based on renewable sources of raw

material (sugar cane)

– Technology to convert ethanol into ethylene already in place

– Biopolymer: biodegradable green polymer

Nanotechnology– 1st Brazilian petrochemical company to file a patent

– 4 patents already filed

– 1st product launched in November 2006: new PP grade

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Ipiranga Acquisition

20

A new step in the restructuring of the Brazilian Petrochemical Industry A new step in the restructuring of the Brazilian Petrochemical Industry

5 plants5 plants730 730 ktkt of resinsof resins

Leadership in HDPELeadership in HDPE40% Market Share40% Market Share

ProductionProduction1.2 1.2 mnmn tons of Ethylenetons of Ethylene

2nd largest cracker2nd largest crackerin in LatamLatam

MarchMarch 19th, 200719th, 2007

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Gross RevenueGross Revenue

US$ 6.9 bn

Net RevenueNet Revenue

US$ 5.4 bn

EBITDAEBITDA

US$ 760 mn

Debt / EquityDebt / Equity

59 / 41

AssetsAssets

US$ 7.5 bn

Net Debt / Net Debt / EbitdaEbitda

2.7 x

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Largest petrochemical player in Latin America

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Largest petrochemical player in Latin America

Note: 2006 Figures consolidating Ipiranga and Copesul are unaudited and proforma

US$ 9.9 bn US$ 7.8 bn US$ 1.4 bn

53 / 47 US$ 10.3 bn2.6 x

22Source: Citigroup, JP Morgan and Bear Stearns

15% 15% DiscountDiscount

Comparable Comparable Companies Average: Companies Average:

5.755.75

Dow Nova Chemicals

Lyondell Chemical

Huntsman Georgia Gulf Braskem2007*

4.9

EV/EBITDA EV/EBITDA

* Analysts’ average for 2007

6.5

5.0

6.06.06.0

Acquired Assets Acquired Assets + Debt+ Debt

US$ US$ 2,415 2,415 mnmn

AcquisitionAcquisition EBITDA EBITDA (Ipiranga (Ipiranga + 55% of Copesul)+ 55% of Copesul)

US$ US$ 390 390 mnmn

Transaction multiple of 6.2 x before synergies

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Financial leverage practically intact after the acquisition Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Financial leverage practically intact after the acquisition

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Improved profitability and EBITDA with potential increase in cash flow

Expansion of product portfolio, consolidating our leading position in all respective segments, mainly HDPE

Client base expansion and supply of value-added services based on Innovation & Technology structure

Full integration between 1st and 2nd generation, leading to improved competitiveness

Increased operational flexibility

Improvement of supply chain management

– Increased flexibility with naphtha supply

Strengthening of the partnership with Petrobras

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Strengthening of our competitive advantages unlocks potential synergies

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Strengthening of our competitive advantages unlocks potential synergies

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OTHERS

IMPORTS

PPPP %%

PVCPVC %% PE + PP + PVCPE + PP + PVC %%

PEPE %%

42%42%

41%41%

53%53%

37%37%

Source: Braskem/Abiquim 2006

More than 50% of market share in all resins

33%

15%

52%52%

9%

39%52%52%

30%

53%53%17%

30%

53%53%17%

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Strengthened market leadership Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Strengthened market leadership

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Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Synergies: Experienced management team with proven implementation capacity

Braskem: Acquisition of Ipiranga Group´s Petrochemical Business Synergies: Experienced management team with proven implementation capacity

Commercial– Complementary product portfolio, especially HDPE– Integration of client base – Optimization of export contracts

Industrial– Operational flexibility– Shared maintenance services

Fiscal and tax optimization

Supply chain– Scale gains in procurement– Optimization of logistics

Competitive management model with potential to improve quality and productivity through the exchange of best practices

Possibility of new DBN’s in the Southern Complex

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AMORTIZATION SCHEDULE03/31/2007 - (R$ million)

Gross debt: 5,800Gross debt: 5,800

Net debt: 4,205Net debt: 4,205

Average term: 17 years

26%

8%6%

2007 20092008 2010

8%9%

2013/2014

2017/2018

2015/2016

6%

12%

2011/2012

12%

Perpetuals

13%1,162*1,162*

718718724724543543675675

462462366366449449372372

Source: Braskem

331331

03/31/07Cash and cash equivalents

1,596

812

784

Invested in US$

Invested in R$

Dec 06 Mar 07

2.722.51

Net Debt / EBITDA (LTM)

*Subordinated debentures fully subscribed by the controlling shareholder with payment of interest and principal in July 2007.

**Unaudited pro-forma figure for 2006 considering the acquisition of Ipiranga

-8%

Ratings of BraskemRatings of BraskemOutlook from Stable to PositiveOutlook from Stable to Positive

““Fitch expects the company to be able to increase Fitch expects the company to be able to increase significantly free cash flow generation, which significantly free cash flow generation, which

would allow a significant improvement in credit would allow a significant improvement in credit metrics needed for metrics needed for BraskemBraskem´́ss rating to migrate to rating to migrate to

an Investment Grade category.an Investment Grade category.””Pro-

forma**

2.63““BB+BB+””

Braskem: Solid Financial Structure Adequate indebtedness profile with financial leverage practically intact after the acquisition

Braskem: Solid Financial Structure Adequate indebtedness profile with financial leverage practically intact after the acquisition

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Upcoming Opportunities

for Value Creation

28

Braskem: Opportunities for Value Creation Resin production capacity growth in Brazil … Braskem: Opportunities for Value Creation Resin production capacity growth in Brazil …

Source: Braskem (2006)

PaulíniaPaulínia

BahiaBahia

AlagoasAlagoas

PVC +150 k ton / year

PE +100 k ton / year

PP Bahia +300 k ton / year

Petroquímica Paulínia: PP Plant– JV with Petrobras– Total investment of R$ 734 million– Production capacity

• +350 k ton / year

– Location• Paulínia, State of São Paulo

– Start-up in 2Q08

Projects being considered for future implementation:– DBN

– Greenfield

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Braskem: Opportunities for Value Creation …combined with investments in the lowest feedstock cost country in the region…

Braskem: Opportunities for Value Creation …combined with investments in the lowest feedstock cost country in the region…

PDA’s signed

Cornerstone laid on 04/16/07

JVs to be created by the end of 07

Two projects in the Jose Complex:– 50/50 Braskem and Pequiven– Capital structure: 30% equity, 70% debt– Project finance non-recourse – multilaterals, ECAs

and development banks

PP Plant*– Production capacity of 450 kton / year– Investments of US$ 370 million– Start-up in 2009– Propylene at competitive prices

Jose Olefins Complex*– 1.3 million tons of ethylene– 1.1 million tons of PE– Total investment of US$ 2.5 billion – Start-up in 2011– Natural gas at competitive prices

* To be presented to the Board

Venezuela

30Source: Braskem

Polyethylene Polypropylene PVC

PaulPaulííniania350350

Braskem Current 2008 2009 2010 2011 2012

VenezuelaVenezuela450450

CamaCamaççariari150150100100

VenezuelaVenezuela1,1001,100

5.5 million

(1) JV with Petrobras(2) JV with Pequiven

(2)

(2)

CamaCamaççariari300300

1,815

760

515515

3.1million

665

1,860

3,015

(1)

Braskem: Opportunities for Value Creation …will result in an 80% production capacity increase for

thermoplastic resins...

Braskem: Opportunities for Value Creation …will result in an 80% production capacity increase for

thermoplastic resins...

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Braskem: Opportunities for Value Creation …within a lower production cost structure derived from access to diversified sources of raw materials on a competitive basis

Braskem: Opportunities for Value Creation …within a lower production cost structure derived from access to diversified sources of raw materials on a competitive basis

Source: Braskem

Naphtha Feedstock from Refinery Natural Gas

100%100%

Camaçari - BA

Triunfo - RS

Camaçari - BA

Triunfo - RSPaulínia - SP

Venezuela

9%9%

57%57%34%34%

20062006 20122012

32

100% tag-along rights for all shareholders

Part of BOVESPA’s Corporate Sustainability Index - ISE

BOVESPA Level 1 Company with commitment to migrate to Level 2

SOX early adopter - June 2006

Four of eleven Board members are independent

Existing committees– Ethics Committee– Enhanced Fiscal Council– Finance & Investment– People & Organization– Strategy & Communication

Code of Conduct: sets values, principles and practices governing corporate behavior

Long-term incentive plan tied to stock performance

All plants ISO 14000 certified: excellence in HSE

Braskem: Opportunities for Value Creation Commitment to Sustainability and high standards

of Corporate Governance

Braskem: Opportunities for Value Creation Commitment to Sustainability and high standards

of Corporate Governance

Braskem environment project in Alagoas / Brazil

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Regional market leader in the production of PE, PP and PVC: organic growth and consolidation

Greenfield projects in the region to guarantee access to competitive raw materials: selective growth

Strong growth potential in the next 5 years:– Total production capacity will increase from 6 to 10 million tons– Production of resins will increase from 3.1 to 5.5 million tons

Solid financial structure coupled with capital discipline

Innovation and technology as key drivers for value creation

Access to competitive sources of renewable raw materials

Consolidation of the partnership model with Petrobras

100% tag-along for all shareholders and best corporate governance practices

Social and environmental responsibilitySocial and environmental responsibility

Braskem: Growth with Value CreationBraskem: Growth with Value Creation

Meeting with InvestorsMeeting with Investors

May 2007May 2007