International Business UnitRoberto Ramos

Questions

International Business Unit

Ethylene XXI Project

Agenda

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Questions

International Business Unit

Ethylene XXI Project

Agenda

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UNINT

Business

To continuously evaluate the opportunities in countries

wherever the feedstock is available under competitive

conditions for the construction of Greenfield projects and

to support Braskem growing strategy by mergers and

acquisitions

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UNINT

Main Targets

Support Braskem long term growth strategy, towards new

geographic frontiers

Be present in new places wherever competitive feedstock

is available and/or it is possible privileged access to

relevant markets

Focus on new projects in countries where Brazil’s

geopolitical influence allows the leverage of the

opportunities

Identify and prepare people with entrepreneurial skills

and multicultural capability

Ensure that new projects shall be aligned with Braskem’s

growing and sustainability strategies

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Concentrations

Mexico

JV configuration: done (17 expatriates)

Feedstock supply agreement: done

Financial Advisor: done (Sumitomo)

Basic Engineering: starting in Oct/2010

Technology selection: virtually selected

EPC Alliance Model: Under negotiation

Financial Package: Preparation of information

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Concentrations

Venezuela

Propilsur: PP alternative location Under study

Polimerica: Analyze alternatives in accessing new gas sources

Peru

Project Office: Already established

Agenda with Petrobras and other suppliers of gas

Bolivia

Government: Possible revision of the Hydrocarbon Law to attract

new investments

Colombia

New opportunities under monitoring

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Structure

CEO

Bernardo Gradin

UNINT V.P.

Roberto Ramos

Mexico

Roberto Bischoff

Projects

Support

Airton Beretta

Projects

Support

Carlos Brenner

Venezuela, Peru,

Bolivia

Sergio Thiesen

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Expansion in Americas

Ensure regional positioning

allowing the supply of the

regional market from

different production centers

with more integrated

approach and not restricted

to Brazilian exports

Operation Areas

Greenfield Projects

Mexico – Peru – Bolivia – Venezuela

Commercial Offices

Chile – USA – Argentina – Colombia – Singapore – Netherlands

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Main Regional Front

Mexico: Ongoing Project: Second largest Latin American

plastics market and relevant feedstock producer.

Peru: Boundary to Pacific coast with natural gas

availability. Appropriate place for an Integrated Project.

Relationship and feedstock solution under development.

Venezuela: Largest Latin American feedstock reserves.

Natural player for petrochemical development. Economic,

social and politic environment demand continuously

evaluation.

Bolivia: Regional proximity with Brazilian and

Argentinean markets, existing feedstock and production

infrastructure to be developed. Networking under

reconstruction.

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Enlarge the Horizon

Global Alliances and Partnership:

Continuously evaluate the new growth opportunities abroad

Offices: Europe – Asia

Projects: Africa, Europe, Asia11

Maturity

Background

Capability

Partner Relationship

Government Relationship

Family

Social and Cultural Integration

Internationalization with Peopleware

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Up Dated Environmental

Criteria

Minimized CO2 emissions

Maximize recycling such as

process water

Carry out all Greenfield

Projects

Sustainability

Green Chemistry Technology

Consolidate Brazilian development

Projects abroad

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Agenda

International Business Unit

Ethylene XXI Project

Questions

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Currently deficit above 1.1 MM ton (2010)

Estimated deficit in 2015 (project start-up): 1.7 MM ton

Annual Growing rate foreseen: 4.5 % (Period: 2010-2025 )

Polyethylene Market

0.4 0.5 0.5 0.5 0.6 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8

1.1 1.1 1.1 1.2 1.1 1.0 1.1 1.1 1.3 1.4 1.5 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 1.5 1.6 1.7 1.7 1.6 1.7 1.8 1.9

2.0 2.2

2.3 2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

ton

/ye

ar

Polyethylene Mexican Market

Supply Deficit Demand

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Micros

60%

Pequenas

24%

Médias

12%

Grandes

4%

Big

Medium

Small

Converters Profile

Total: 3,500 Converters

Mexican Converters Industry

3,500 plastics converters

84% small and micro companies

More than 5 MM ton of plastics conversion, with 1.8 MM of Polyethylene

Main application: Packaging (48% market)

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PEMEX Gas (Basic Petchem)

Ethane Cracker

3 Polyethylene sites

Ethane Ethylene

66,000 bpd 1,000 kTy

1,000 kTy

HDPE

PEMEX (E & P)

Gas

Polyethylene

LDPEHDPE

The Project

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Estimated investment: US$ 2.5 billion

Project Finance target: 70 % debt / 30% equity

Estimated Jobs during the construction: around 8,000

Estimated Jobs during operation: around 3,000 ( direct and indirect )

Localization: Coatzacoalcos (Veracruz State: Population: over 7 million)

Video link

The Project

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Video

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2010 2011 2012 2013 2014 2015Phase

PDP/FEED

EPC

50 month from the PDP/FEED until to Start-Up

Preparation/Selection

Project Finance

FID Start-up

Schedule

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Competitive feedstock

State-of-the-art Ethylene and Polyethylene Technologies: focus on

reduction of CO2 emissions

Labor cost among of the world’s most competitive (emphasis on

detailing engineering and construction)

Alliance Model: reduction of total cost and assurance of the schedule

Braskem team with large project and Ethylene and Polyethylene

operation background

Excellent timing to project implantation

Competitiveness Factors

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Ethylene XXI

Current Situation

US$ 138 MM of expenditures approved by shareholders until Dec/2011 –

financial assistance done until Sept/2010 / Braskem team work already

expatriated / technology: ongoing selection and acquisition and basic

project phase

Market study already done and Polyethylene technologies defined

Cracker Technology: under definition

Alliance Model Agreement: under negotiations

Braskem and Idesa team mobilized for project management and follow-up

Starting of Basic Engineering: Oct/2010

Project Finance: under study supported by BNDES/BANCOMEXT

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Questions

International Business Unit

Ethylene XXI Project

Agenda

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