Braskem S.A. · BMFBOVESPA:BRKM3
Braskem — Merger or Acquisition (March 2007)
18 slides from Braskem's merger presentation, Mar 23, 2007
Slide 1: Acquisition of the Petrochemical Assets of The Ipiranga Group
Acquisition of the Petrochemical Assets of The Ipiranga Group José Carlos Grubisich March 2007 Forward-lookingStatements
Slide 2: Strategic Drivers: Growth with value creation
To become Latin America's leader in thermoplastic resins To rank amongst the TOP 10 global petrochemical companies in market capitalization Strategic Drivers Growth with value creation
Slide 3: Strategic Drivers: Main projects
Leverage Braskem's production chains and Brazil's alternative sources of raw materials by broadening its portfolio of products and services Consolidate market position in key products in Latin America and guarantee competitive sources of raw material Strategic Drivers Main projects
Slide 4: Braskem: the largest petrochemical company in Latin America
Capacity increases in isoprene and paraxylene Converging from MTBE to ETBE Hidrocarbonic resins Green polymers Petroquímica Paulínia Venezuela Projects: PP plant Jose Olefins Complex - 1st and 2nd generation Braskem The largest petrochemical company in Latin America
Slide 5: Gross Revenue
Gross Revenue 2002 2003 2004 2005 2006*
Slide 6: The Transaction Step by Step
* Pro forma - includes Ipiranga and Copesul's figures for 2006 The Transaction Step by step
Slide 7: Ipiranga Petroquímica Profile
* Analysts' average for Source: Citigroup, JP Morgan and Bear Stearns Ipiranga Petroquimica Profile Complementary businesses
Slide 8: Ipiranga Petroquímica Profile: Complementary businesses
• Leader in HDPE: 38% market share • Capacity utilization rate in 2006: • 89% for PE • 81% for PP • More than US$ 300 million in exports - around 40% of total volume • Production technology in PP: Spheripol (same as in Petroquímica Paulínia) • Production technology in PE (HDPE): Hostalen - the only
Slide 9: Copesul Profile
• 2 nd Largest raw material unit in Latin America • 85% of ethylene and 100% of propylene supplied to Ipiranga and Braskem • 440 kt of aromatics production capacity • 58% of imported raw material - naphtha and condensate • Storage capacity of naphtha/condensate - 2 times larger than Braskem • More t
Slide 10: Braskem: Increased scale with improved profitability
Ethylene Production Capacity: 1.3 MM tons - 2.5 MM tons Resins Production Capacity: 2.3 MM tons - 3.1 MM tons Market share higher than 50% in all resins Largest Petrochemical Company in Latin America * Unaudited pro-forma figures Braskem: even more strengthned position of leading producer in the reg
Slide 11: Industry leadership for all the resins
Source: CMAI and Braskem 2007 coupled with industry leadership for all the resins
Slide 12: Braskem
Braskem Braskem
Slide 13: Braskem: positioned among the largest petrochemical companies in the world
Source: Braskem/ Brazilian Association of Chemical Industry - 2006 Braskem: positioned among the largest petrochemical companies in the world
Slide 14: Braskem: Improvement of the quality of the business
*Braskem estimates. 2005 results only in petrochemical businesses of mentioned companies Braskem: Improvement of the quality of the business
Slide 15: Solid financial structure
Braskem Solid financial structure: financial leverage almost intact
Slide 16: Braskem: next steps in the implementation of its strategy
Capacity increase in PP and PE Copesul capacity increases Investments of around R$ 700 million Braskem: next steps in the implementation of its strategy of Growth with Value Creation
Slide 17: Growth with value creation
(1) JV with Petrobras (2) JV with Pequiven Source: Braskem Growth with value creation
Slide 18: Signatures and Forward-Looking Statements
Acquisition of the Petrochemical Assets of The Ipiranga Group José Carlos Grubisich March 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: Ma