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2Q08 Results 2Q08 Results
Conference CallConference Call
2
ForwardForward--looking Statementslooking Statements
This presentation contains forward-looking statements. These statements do
not represent historical fact, but rather reflect the beliefs and expectations
of Braskem’s management. The words “anticipate”, “wish”, “expect”,
“estimate”, “intend”, “forecast”, “plan”, “predict”, “project”, “target” and
similar words are intended to identify these statements. Although Braskem
believes that the expectations and assumptions reflected in these forward-
looking statements are reasonable and based on information currently
available to management, Braskem cannot guarantee future results or events.
The forward-looking statements included in this presentation are valid only
on the date on which they are made (June 30, 2008), and the Company does
not undertake 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.
3
Highlights 2Q08Highlights 2Q08
Operating Performance :
� Brazilian resin market grows 11% on 2Q08 x 2Q07
� Braskem’s resin sales in the domestic market grow 17%, with market
share of 53%
� Maintenance stoppage in Braskem’s 2 crackers:
� Increase of 25 kton/year in Triunfo’s ethylene capacity
� Naphtha ARA increases 48% on 2Q08 X 2Q07 and 50% on 1H08.
Impact on costs reaches R$ 601 million in 1H08
� Net income reaches R$ 383 million, positively impacted by the
Brazilian Real appreciation
4
Strategic Steps:
� Acquisition of the petrochemical assets of Ipiranga Group approved by CADE
� Braskem owns 100% of the total capital of Ipiranga Petroquímica and
Paulínia, and 99.2% of Copesul
� With the incorporation of Petrobras’ stake in these companies, Petrobras
increased its stake in Braskem from 6.8% to 23.1% of the total capital
� Green Polymer:
� Location – Triunfo
� Investment - R$ 450 million to R$ 500 million
� MOU signed between Braskem, Petrobras and Petroperu
Highlights 2Q08Highlights 2Q08
5
PP and PVC high production levels in a PP and PVC high production levels in a quarter with maintenance stoppagesquarter with maintenance stoppages
PE PP PVC
2Q081Q08
ETHYLENE
95%
74%
Source: Braskem
2Q07
86%
96%
� 35 days of maintenance stoppage in its two crackers
� 14 days of maintenance stoppage in the PE plants
2Q081Q082Q07 2Q081Q082Q07 2Q081Q082Q07
89%
73%
92%96%
89%
97%104%
102%
88%
704
2Q081Q08
624
LTM2Q08
LTM 2Q07
2,807 2,744
-2%
707
2Q07
Utilization RateUtilization Rate %%
Resin ProductionResin Production KtonKton
-11%
6
Braskem strengthens leadership position Braskem strengthens leadership position in robust domestic market:in robust domestic market: DemandDemand +11%+11%
Source: Braskem / Abiquim
+13%
+ 18 %+17%+ 17%
+11%
PVCPPResin
BraskemPE
Brazilian market *
Others
Imports
53%*53%*
21%
26%
Domestic SalesDomestic Sales 2Q08 x 2Q072Q08 x 2Q07 %% Resin Market Share 2Q08Resin Market Share 2Q08
* Braskem market-share includes sales of PVC imported by the Company
*Domestic sales + Imports
7
EBITDA EvolutionCommercial strategy minimizes impact from Naphtha prices increases and foreign exchange rate appreciation
EBITDA EvolutionEBITDA EvolutionCommercial strategy minimizes impact from Naphtha Commercial strategy minimizes impact from Naphtha prices increases and foreign exchange rate appreciationprices increases and foreign exchange rate appreciation
921
2Q07 2Q08Volume
Source: Braskem
(326)
(1,179)
1,266
(126)
519
763
(1,089)
67
R$ million
(104)
Prices Foreign Exchange
Raw Materials
Fixed Costs/ SG&A
Non-recurring gains PIS/
Cofins 2Q07
FX impact on costs
FX impacton revenue
8Source: Braskem
583
1Q08 2Q08
(16)
166 (136)
519
185
(246)
(193)
R$ million
(136)
(61) (39)
79
VolumePrices Foreign Exchange
Raw Materials
Fixed Costs/ SG&A
Other
FX impact on costs
FX impacton revenue
EBITDA EvolutionIncrease in basic petrochemical prices and higher volumes in domestic market minimizes impacts from higher raw materials costs
EBITDA EBITDA EvolutionEvolutionIncrease in basic petrochemical prices and higher volumes in Increase in basic petrochemical prices and higher volumes in domestic market minimizes impacts from higher raw materials costdomestic market minimizes impacts from higher raw materials costss
9Source: Braskem
Main Economic Performance IndicatorsMain Economic Performance Indicators
R$ million
(28)695504(8)220420120384Net Income Before Minority Interest
144084653636228183383Net Income
-(163)206--(59)(200)407Net Financial Result
-6.4 p.p.18.9%12.5%-6.7 p.p.-1.4 p.p.18.5%13.2%11.8%Ebitda Margin
(38)1,7741,102(44)(11)921583519EBITDA
(6)9,3938,816(11)04,9694,4104,405Net Revenue
Chg. % Chg. % (D)/(E)(D)/(E)
1H07 1H07 (E)(E)
1H08 1H08 (D)(D)
Chg. % Chg. % (A)/( C)(A)/( C)
Chg. % Chg. % (A)/(B)(A)/(B)
2Q07 2Q07 ( C)( C)
1Q08 1Q08 (B)(B)
2Q08 2Q08 (A)(A)
Main Economic Main Economic IndicatorsIndicators
10
2016 /2017
Source: Braskem
Lengthening of debt profileLengthening of debt profileis a priorityis a priority
in million of R$ (06/30/08)
06/30/08
1,831
2008 2009 2010 2011 2012 /2013
2014 /2015
2018 /2020
Perpetuals
11%11% 11%11% 11%11%
6%6%
15%15%
6%6%
Includes R$ 1.1 billion from the bridge loan related to the acquistion of the petrochemical assets of the Ipiranga Group
10%10%
25%25%
407407
5%5%1,1961,196
990
838838 936936 947947 933933
493493
1,3571,357
557557
1,1341,134
697697
145
2.78
Mar08 Jun08
2.56
+9%
Gross DebtGross Debt: 8,799: 8,799
Net DebtNet Debt: 6,968: 6,968
AverageAverage TermTerm: 10.5 : 10.5 yearsyears
Net Net DebtDebt / Ebitda (x)/ Ebitda (x)
US$ 70%
Cash and equivalents
In US$
In R$
Fixed 3%Bridge Loan
13%
US$
35%Trade
Finance
22%
CDI
13%
TJLP
14%
11
2008 Outlook2008 Outlook
� Emerging markets support the world’s growth, despite slowdown
in the US economy
� High resin prices pressured by high raw materials costs
� Robust demand in the domestic resin market
� Improved productivity and industrial performance
� Acceleration of synergy gains and costs reduction
� Incorporation of the petrochemical assets of the Ipiranga Group
� Venezuela
� Conclusion of the economic and feasibility studies will allow
investment decision on PP plant
2Q08 Results 2Q08 Results
Conference CallConference Call
VisitVisit ourour websitewebsite: www.braskem.com.br/ir: www.braskem.com.br/ir