Conf call 4t14_eng_120215

4Q14 and 2014 Earnings Conference Call
São Paulo, February 12, 2015

2
This presentation includes forward-looking statements. These forward-looking
statements are not solely historical data, but rather reflect the targets and
expectations of Braskem’s management. The terms “anticipate,” “believe,”
“expect,” “foresee,” “intend,” “plan,” “estimate,” “project,” “aim” and similar
terms are used to indicate forward-looking statements. Although we believe
these forward-looking statements are based on reasonable assumptions, they
are subject to various risks and uncertainties and are prepared using the
information currently available to Braskem.
This presentation was up-to-date as of December 31, 2014, and Braskem does
not assume any obligation to update it in light of new information or future
developments.
Braskem assumes no liability for transactions or investment decisions taken
based on the information in this presentation.
Disclaimer on forward-looking statements

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4Q14 Highlights
3 3
 The average cracker capacity utilization rate was 86%, influenced by the scheduled maintenance
shutdown at the São Paulo cracker, which ended in October.
 Brazilian thermoplastic resins market (PE, PP and PVC) came to 1.3 million tons, down 5% from 3Q14,
reflecting the seasonality from the period. Braskem’s sales followed this trend and totaled 850 kton.
 Sales of PP in the USA and Europe business unit reached 453 thousand tons in the 4Q14, down 4% from
the previous quarter, reflecting the postponements of portion of purchases by clients in the period.
 Braskem recorded EBITDA of R$1.4 billion in 4Q14, down 10% from the 3Q14, impacted by (i) lower sales
volume of resins and (ii) lower petrochemical prices in international market. Comparing with the 4Q13,
EBITDA registered an increase of 19%.
 Commitment with financial health: new stand-by credit facility of US$ 750 million.
 Braskem continued to advance with the Plastics Chain Incentive Plan (PICPLAST). The highlight was the
creation of the Industry Fund, which aims to promote the image of plastic.
 For the tenth straight year, Braskem was included in the Corporate Sustainability Index (ISE) of the
BM&FBovespa.

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Braskem posted EBITDA of R$1,352 million. The growth is explained
mainly by:
 Higher total sales volumes; and
 Depreciation of the Brazilian Real.
EBITDA 4Q14 vs. 4Q13
R$ million
¹ Negative impact in 2013 related to the labor claim involving the payment of overtime at the industrial plants.
2 Positive impact related to the reopening of the Tax Debit Renegotiation Program (Refis) and negative impact from accounting adjusts of inventory in the U.S. and Europe
( )
( )

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2014 Highlights
5 5
 Consolidated net revenue reached R$46 billion, 12% higher than the previous year.
 Consolidated EBITDA was R$5.6 billion or US$2.4 billion, increasing 17% and 8%, respectively, from 2013.
The main factors contributing to this result were:
 The recovery of petrochemical spreads in the international market;
 The Brazilian Real depreciation of 9%;
 And the gain of R$277 million related to the divestment of non-strategic assets.
 In 2014, Braskem recorded net income of R$726 million.
 Leverage, as measured in U.S. dollars by the ratio of net debt to EBITDA, stood at 2,58x, down 10% from
the previous year.
 Growth Projects and feedstock diversification
 The project in Mexico continued to advance, reaching 88% of physical completion.
 In addition to its UTEC portfolio in Brazil, Braskem announced a project to produce ultra-high
molecular weight polyethylene (UTEC), a resin with applications across a wide range of industries,
in USA.
 The Company completed the expansion and conversion of one of its polyethylene lines in Bahia,
for the production of metallocene-based LLDPE.
Financial performance and Growth Projects

66
Brazilian Market for Resins and Braskem’ Sales
 Brazilian Market for Thermoplastic Resins (kton)
 Braskem’s Sales Domestic Market (kton)
-1.0%
-2.8%
 The good performance of the sectors related to retail and consumer goods didn’t offset the
retraction of durable goods, infrastructure and construction.
 Braskem’s resins sales followed the market trend and decreased 3%.
 Braskem’s market share was 67%, 1 p.p. less than 2013, impacted by the opportunistic entry of
imported material during the last quarter of 2014.
 Braskem’ Sales Profile - 2014

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 Braskem reached an all-time record of production in the U.S. and Europe unit, with 1.9
million tons.
 Sales volume were 4% higher and totaled 1.9 million tons.
 As a result of its investments in maintenance and efficiency increase of assets, Braskem
expanded the capacity of its plant in Seadrift, Texas (USA) by 40 kton/year.
 Braskem production totaled 4.0 million tons, a 5% decrease comparing to 2013.
 Total sales volume of 4.0 million tons, down 3% from 2013. In the domestic market, sales
decreased 4%, while export sales reduced 2%.
 The average cracker capacity utilization rate was 86%.
 Total sales of ethylene and propylene amounted to 957 kton, 4% higher than the
previous year.
 Regarding butadiene and BTX, sales were down 1% and 2%.
Highlights by Business Unit - 2014
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Operational
BASIC
PETROCHEMICALS
Volume Margin
POLYOLEFINS
Volume Margin
VINYLS
Volume Margin
USA and EUROPE
Volume Margin
Comparison with 2013
 PVC production was 9% higher, reflecting the normalization of the operation of the new
plant in Alagoas.
 Braskem’s PVC sales totaled 660 thousand tons, an increase of 4% related to 2013.
 Regarding caustic soda, sales reached 460 thousand tons, a 2% decrease comparing
to 2013.

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EBITDA 2014 vs. 2013
R$ million
EBITDA was R$5,620 million, increasing 11% on a recurring basis
from 2013. This result is explained mainly by:
 The recovery in petrochemical spreads in the international
market;
 The depreciation in the Brazilian real.
( )
( )
¹ Negative impact in 2013 related to the labor claim involving the payment of overtime at the industrial plants.
2 Positive impacts related to the reopening of the Tax Debit Renegotiation Program (Refis) + asset sales and negative impacts from accounting adjusts of inventory in the
U.S. and Europe + Petros pension fund provision’

99 9
 Project reached 88% of physical completion by the end of
2014:
 Engineering and procurement activities practically
finalized;
 Pre-marketing activities, with a portfolio of 320
clients.
 Total investment until December 2014 amounted to US$4.2
billion, of which:
 US$2.9 billion was structured under a project
finance model; and
 US$1.3 billion was contributed by the controlling
shareholders.
Growth Projects: Project Ethylene XXI - Mexico
Integrated project for the production of 1 million tons of
PE – JV Braskem (75%) and Idesa (25%)
#1 greenfield project to start-up in North America

1010 10
Capex
R$ million
 Braskem invested R$2,526 million, 5% less than the initial estimate of R$2,664 million.
 Excluding the amounts allocated to the Mexico project, total investment came to R$1,905 million.
 R$1,613 million or 85% allocated to maintenance and other operational investments
 2 scheduled maintenance shutdowns (Triunfo and São Paulo crackers)
 R$292 million or 15% allocated to productivity, operational efficiency and other ongoing projects

1111
US$ million 4Q13 3Q14 4Q14
Net Debt(a) 6,390 6,430 6,229
EBITDA (LTM) 2,230 2,375 2,412
Net Debt/EBITDA 2.87x 2.71x 2.58x
Net Debt / EBITDA (US$)
Amortization Schedule (1)
(R$ million)
Diversified Funding Sources
(a) It does not include the financial structure of the Mexico project
Longer debt profile and high liquidity levels

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Source: International Monetary Fund Report. Focus Bulletin
Global Scenario
Petrochemical Scenario
Additional capacity of Ethylene (MM tons)
3,2
6,5
5,6 5,6
 Projects postponed or cancelled
comparing to the same period last year
 Balanced supply and demand in 2015 -
maintaining spreads
 China:
 High cost/investments to access
available feedstock
 Infrastructure issues
 USA: New capacities to come online as of
2017/2018
 Expected growth of the global economy in 2015 revised
from 3.8% to 3.5%.
 Moderate level of growth in China. GDP of 6.8%.
 Solid recovery in the US economy (GDP of 3.6%).
 Weak economic activity in Brazil, with expectation of
stagnation for 2015.
 Oil prices showing signs of recovery, but still at lower
levels than the 2014 average.
Annual average
increase in
demand (6.3 MM
tons)
Brent ($/bbl)
Economic and Petrochemical Scenario
2014 2015e 2016e 2017e
North America China Middle East Others
30
50
70
90
110
Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15

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Concentrations
 Renewal of the naphtha supply contract.
 Mexico Project:
 Conclusion of construction and start-up in 2015
 Expand the clients base.
 Find a solution that ensures the competitiveness of energy costs, enabling the energy-intense operations
of Braskem in the Northeastern region of Brazil - renewal of the energy contract with Chesf.
 Support an industrial policy that, in parallel with the fiscal austerity policy, lead to the gradual recovery of
the competitiveness factors of the Brazilian industry.
 Increase the competitiveness of Braskem’s feedstock, by reducing its cost and by its diversification.
 Maintaining liquidity levels, cost discipline and financial health.
 Focus on the cash generation;
 Implement a new Fixed Costs reduction program.

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4Q14 and 2014 Earnings Conference Call
São Paulo, February 12, 2015

Conf call 4t14_eng_120215

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