Earnings Conference Call4Q06 and 2006

José Carlos Grubisich Carlos Fadigas

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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 (December 31, 2006), 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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Highlights of the PeriodStrong demand* growth in the domestic marketHighlights of the PeriodStrong demand* growth in the domestic market

*Domestic sales + Imports

Source: Abiquim

%2006 x 2005

PVC PP ResinsPE

+8%+8%

+12%

+9%

Resins demand growth of 315,000 tons in 2006

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Highlights of the periodHighlights of the period

Record Gross Revenues of approximately US$7 billion, a 8% growth over 2005;

Strengthening of Braskem’s leading position in the resins market (PE, PP and PVC);

Acquisition of Politeno’s control:

– Integration of operations completed;

– Volume of synergies initially identified confirmed: US$ 110 million in NPV;

– Portfolio of products and customers improved;

– Identification of new synergies underway

Inovation & Technology– Launching of the 1st Brazilian resin using Nanotechnology (PP grade);

– 14 new patents registered in 2006;

– 20% of resins revenue from products developed in the last 3 years

Increased efficiency and productivity

– Conclusion of Braskem + one year ahead of schedule with overcoming results

– Successful implementation of Formula Braskem as planned;

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Lengthening of the Company’s average debt maturity from 11 to 16 years;

Selection as part of the Bovespa’s Corporate Sustainability Index (ISE) for the second

consecutive year in a row;

International recognition in Corporate Governance:

– Highest corporate governance rating among Brazilian companies in a survey conducted by GovernanceMetrics International (GMI);

Implementation of a Share Buyback Program as planned;

Launch of PP Paulinia’s plant cornerstone and construction start up

Highlights of the periodHighlights of the period

6

Highlights of the PeriodPositive evolution of EBITDA and EBITDA marginHighlights of the PeriodPositive evolution of EBITDA and EBITDA margin

1Q06 3Q06 4Q062Q06

%EBITDA Margin

+9%

+15% +14%

+18%

R$ millionEBITDA

1Q06 3Q06 4Q062Q06

253

417 461

530

Source: Braskem

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Braskem Figures – 4Q06Significant EBITDA growth and improved profitabilityBraskem Figures – 4Q06Significant EBITDA growth and improved profitability

Net Revenue R$ million

Net Debt / EBITDA Last 12 Months

3Q06 4Q06

3,2772,974

Sep06

Dec06

2.962.72

3Q06 4Q06

461530

3Q06 4Q06

212

+17%

247

3Q06 4Q06

-65

78

3Q06 4Q06

396

%NR

396

Exports US$ million

EBITDA R$ million461Net Income / Loss R$ million

461EBITDA US$ million

-9%

-8%

+15%+143

29%26%

Source: Braskem

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EBITDA Evolution Decreasing costs of raw material boosts 4Q06 EBITDAEBITDA Evolution Decreasing costs of raw material boosts 4Q06 EBITDA

3Q06 Raw Materials

Price Others

R$ million

Volume

461

34

215

FX Rate

(7)(75)

(97)

4Q06

530

Source: Braskem

9

Main SG&A Variations – 4Q06 vs. 3Q06Main SG&A Variations – 4Q06 vs. 3Q06

R$ million

Source: Braskem

3Q06 4Q06Export Expenses

Accounting Standard Adequacy

Service Expenses

(Consulting and Legal)

Other Expenses

ExportsVolume 14% higher

215

275

Distribution Logistic

Expenses

5

1612

9

18

10

Financial ResultFinancial Result

4Q06 3Q06 Chg %

(A) (B) (A)/(B)

Net Financial Results (239) (330) -28%

Foreign Exchange Variation - FXV 35 (50) -

Monetary Variation - MV (55) (54) 2%

Financial Results Excluding FXV and MV (218) (227) -4%

Net Financial Result(R$ million)

Hedge /Others

(25)(227) (218)

3Q06 4Q06

Interests and Vendor

10

SELIC Tax Provision

CPMF, IOF / Working Capital

Source: Braskem

1113

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Debt ProfileHigher level of cash and cash equivalents coupled with a debt profile compatible with the cash flow from operations

Debt ProfileHigher level of cash and cash equivalents coupled with a debt profile compatible with the cash flow from operations

AMORTIZATION SCHEDULE12/31/2006 - (R$ million)

Gross Debt: 6,295

Net Debt: 4,513

Avg. maturity: 16 years

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

December 31, 2006

Cash and cashequivalents

Trade Finance8%

Pre2%

US$41%

CDI26%

TJLP23%

25%

14%

6%

2007 20092008 2010

7%9%

2013/2014

2017/2018

2015/2016

5%

12%

2011/2012

10%

Perpetual

12%1,131*

748755

343565

648

451362

859

431

1,782

1.087 US$

695R$

US$49%

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Highlights:• Competitiveness Programs:

• Isoprene capacity expansion: + 9kt• Polyethylene Debottlenecking: + 30 kt

(R$ million)

Capacity Increases

Equipment

Healthy, Safety and EnvironmentTechnology

Productivity

Quality and Others

Information System

93

199

153

54

119

97

4

719

2006

This amount doesn’t include:

Maintenance Shutdowns R$ 150 MMCapitalized Interests R$ 83 MMInvestments in Paulínia R$ 15 MMPoliteno Acquisition R$ 238 MM

InvestmentsOver R$ 700 million invested in 2006InvestmentsOver R$ 700 million invested in 2006

Source: Braskem

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Outlook for 2007Outlook for 2007

Global supply-demand balance for thermoplastic resins remains favorable;

High utilization capacity rates globally;

Sustained prices scenario for resins and other petrochemical products;

Average oil prices expected to be lower in 2007 compared to 2006;

Domestic demand for resins positively impacted by Brazilian GDP growing scenario;

Operating investments estimated at R$ 550 million;

Start-up of the PP project in Paulínia in 1Q08, with investments of R$ 80 MM in 2007;

Attractive perspectives of both projects – PP and Jose Complex - in Venezuela

confirmed, with investment case to be concluded by the end of 2007.

Earnings Conference Call4Q06 and 2006

José Carlos Grubisich Carlos Fadigas