Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Merger or Acquisition (August 2010)
62 slides from Braskem's merger presentation, Aug 16, 2010
Slide 1: Valuation Report: Braskem S.A. and Quattor Participações S.A.
Free tranalation of the orginal ‘vainonRepeinPortgese ind BBI Valuation Report Braskem S.A. and Quattor Participagées S.A. July 19, 2010 ‘tity Private nd Confidentiat
Slide 2: Important Notice
Introduction cremate oe ct Important Notice Banco Bradesco BB! SA. racesco BB nas engaged by Brashim S.A (Brahe nore roar an independent vaiten repo (Valuation Report) of he fetong asses Baskem and QuaterParpajtes SA Oust ated a posse ncwporaton ef Quator by Basen, unde he ems of are 27 of Law a {64
Slide 3: Important Notice
Introduction cremate oe ct Important Notice ‘hough he aalses and rests reer hen ae kasd in tre projections, is Valiton Report int nae, n any level fom, of ny rea ue ‘esis at can be her rower fom thse prsered heron. We were ao net asked fo conduct (and wed ret conéct) ay physi insects fe > Aaa reat o
Slide 4: Important Notice
Introduction cremate oe ct Important Notice ‘matmay occu ator he cneiion cl he Tranactens 8a est of coneerca changes. Be esting buses > Bastem ands management ot (fe wih tor tcut in any manner whatsoever, our aces, ulzabon or knowledge of fe ornate, oaument or metedalopes elevate aly a he anata rese
Slide 5: Content
Content towee Reto Page LL Execute Summary ‘ 1. Inlomaton about Bradesco Bt 0 1. Deseiption ofthe Companies “ IV. Valuation Methodologies a V.Basken’s Vatnton 2“ VL Rots Vetaton 2 Vi, Quator inc’ Vln x» Vi. CuatorPetroquinica'sVatuton 4“ 1% Quatos Valution 0 Append % Lossy 5 ML Wet Deb Calculations
Slide 6: I. Executive Summary
‘vainonRepeinPortgese |. Executive Summary i= BBI
Slide 7: Valuation Report Considerations
Executive Summary towee Reto Valuation Report Considerations » Brastom, Pebciras S.A. CPetobras, Pebobras inca SA. (Pevomss”) and Odereent SA COdebret) signed an agremant in 2007 to conto he ‘ralon chemical ndusty by igrting pat of thr pabochencal assts rio Brastem, comping fis agreonet he flowing a
Slide 8: Summary of the Valuation
Executive Summary towee Reto Summary of the Valuation > rashnts eres vali isn the rage of RS 25,313 min and RE 27579 male, consign et nd equals of 04007200, egy vase (Equity Va inte rage of RS 18,75 mitlon eS 20882 aon > Quatorsenrpse va iin he ange of RS 7.102 millon and RS 7.858 ion; cnsidong tene
Slide 9: Summary of Quattor's Valuation
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Slide 10: II. Information about Bradesco BBI
‘vainonRepeinPortgese Il. Information about Bradesco BBI i= BBI
Slide 11: Credentials
Information about Bradesco BBI towee Reto Credentials > adesco 861 present tots qualfeatans as tran adver n merger, dequsiton and ener fer Yasactons he Grain markt Year chant comtry —_Counterpat eset ety 20 bene ect bcs Denson ne 0 Sain Vile tLe Oe Magee os 2009 con ft AG Concent pequitonct toe ear
Slide 12: Qualification of the Professionals Responsible for this Valuation Report
Information about Bradesco BBI Voto ep Pa Qualification of the Professionals Responsible for this Valuation Report {0s an 200 mse ea be a rn ME gn Cio ew essa an eset Bark som runny a B&G fr Fj Go Ves ong MR a Ce Ue se Cuore reco Bln fe 2008 Pex he wed et Capen Gal Mal snc as 200, er ‘wan vo peer ad
Slide 13: Bradesco BBI's Statement
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Slide 14: III. Description of the Companies
‘vainonRepeinPortgese Ill. Description of the Companies i= BBI
Slide 15: Description of the Companies - Braskem
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Slide 16: Description of the Companies - Braskem (quantiQ)
Description of the Companies - Braskem ‘Free twanaation oth ogi acer quantiQ [oie [ ance > amore onan tetsapnebecmoma rai sae semen > en te mary sonpay tatters at Rae oa SS SRE a co i= sm > The logisties structure of quant &s comprised of eight Distnbution Centars STD 2 = es baa TRS PAO S eaee aes E
Slide 17: Description of the Companies - Quattor: Rio Polímeros S.A.
Description of the Companies — Quattor ‘ache ecinponeees Rio Polimeros S.A. [[oveiew [ Fencitgihs » Rated wet cnc conde amen - postition tas = » fara nas poacn pc 20 and eee enn, 15 Nea ‘een ars dsc _ 7 » fhm etntaeaci nt panayene tn rene ae tom Tenn dg o Minipsecaeuon a Sty vee = » aoe ep cn tt oe
Slide 18: Description of the Companies - Quattor Química S.A.
Description of the Companies — Quattor nc Vann pari Parnes Quattor Quimica S.A, [overview [[ Financia Highiigms > uta inca se et oe scan of Gur Cus sees Eton 1 __nor__root_ sue. fer Ponca un (POU, yPteonos Uno a » tere esiucten Cito Quine now has Wo padre how im tm ne So sort ard te omar Capo and ha
Slide 19: Description of the Companies - Quattor Petroquímica S.A.
‘Free ranaition of he cgi! Description of the Companies — Quattor the auton Repatin Pog Quattor Petroquimica S.A. [overiew [ Fence > ator Peomimia emerge weh te ean ouster Panceries, —wémaon zoxe__nnr_os__suo, fa win contnaton ef the botecomial aes of Peeves and apc a near ‘cou fo tao nn > Por 1 te
Slide 20: Description of the Companies - Quattor
‘Free ranaition of he cgi! Description of the Companies - Quattor : Companies. Parana Polibutenos S.A. Industrias Quimicas [ores [ Fosse » rate men ni a eam et SESS RSS eesti eee ese Soecacens = ua am » tare emanate doihaoe-M83t ote 3 os comes roumer wh wk nd 0 » Sy arn anon ab ep om ant 7S es am wh
Slide 21: IV. Valuation Methodologies
‘vainonRepeinPortgese IV. Valuation Methodologies i= BBI
Slide 22: Valuation Methodologies
Valuation Methodologies ‘Free twanaation oth ogi vain RepeinPortese DCF (Operational Braskem and Quattor’s Subsidiaries) and EBITDA Multiple (quantiQ, PIB and Divisio Quimica) Discounted Cash Flow and EBITDA Multiple petra insta (0F and unt (ESTA se) Discounted Cash Flow and EBITDA Multiples ‘uars S
Slide 23: Discounted Cash Flow: Macroeconomic Assumptions
Discounted Cash Flow towee Reto Macroeconomic Assumptions used in the Valuations — xchange Fate Us Averaged Pett 2m 19 sos} 150 170 sat t87 190 195 200 20 ama ae a ‘Strictly Private and Confidential BB
Slide 24: V. Braskem's Valuation
‘vainonRepeinPortgese V. Braskem’s Valuation i= BBI
Slide 25: Operational Braskem's Valuation: Sales Volume and Assumptions
‘Free ranaition of he cgi! Operational Braskem’s Valuation ‘vainonRepeinPortgese Sales Volume and Assumptions <r [ pssontone » cnt 0m eae 06 sn 2 = Seopa ee eee ee cnet rt, emt Si pct ns dn SRLS Se es oes ars So Spectr rs afi Pate cen Sire ph Sete ace sacs Sy > ee ent nat in Sema fe [ Pic eum Patel,
Slide 26: Net Revenue, COGS and EBITDA
‘Free ranaition of he cgi! Operational Braskem’s Valuation Sante epnthPotepe ‘Net Revenue, COGS and EBITDA << [coos mito ses 1788 uw 187 Se ee ee [oro tna TDA Main) i Nata’ average pice, Brashan's main ow mati was cult based ‘on CMATS pected aia te intmatonal mare, aghsted by the historia rtubonsip
Slide 27: Free Cash Flow
Operational Braskem’s Valuation fehabeaonnfabehanean Free Cash Flow [ sedate of FF 80 ton or woot aaa an (tere at ee am nowuxt eT) 136 (oxen etton mm mmm ex (rors cath Row a ee ee ee ee) 2am wore Ce ee a Omerng cnt ‘ © wa @® 2 s © (FEE Free Caan ow ois mes sgoo testes tte nets [ sedation fhe FF itio
Slide 28: WACC Calculation
Operational Braskem’s Valuation WACC Calculation ‘Free twanaation oth ogi ‘vainonRepeinPortgese [ acc tn aw San Eanes enya oto Samy Oye bageaee poner too Step ais wee ete org non ee ues tO, seeveedbnsene ageco screamed) UA tee 550% Avenger ed cen SAPS wd Tr te) ee 2am nd niet cmp ct rk ea te eae cn
Slide 29: Sensitivity Analysis of Operational Braskem's Enterprise Value
Operational Braskem’s Valuation ‘Free twanaation oth ogi vocseetnones ‘Sensitivity Analysis of Operational Braskem’s Enterprise Value (DCF) oo [ om vate ran (mt) wn oe oor oe w[ ae ae a en ee Biam| se nm mn eee Sanson | same sess wars tsa 500 & acon | sess asso om rss aes | eh te ae) ae clot ae ae o
Slide 30: quantiQ's Valuation
quantiQ’s Valuation auton Repatin Pog quantiQ’s Enterprise Value (EBITDA Multiples) [[ comsrbie Companies Muti Vocal currency in Smilin) Congany Coty —_—Cency Manet ee aoe © "ITA 208 EVERTON ‘GouePars USA USD 310 om 10 a5 Pica USA USD om ae ‘oe { Comparbie Transactions Mute {[ Sommary ofthe Valuatio
Slide 31: Braskem's Valuation
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Slide 32: VI. RioPol's Valuation
‘vainonRepeinPortgese VI. RioPol’s Valuation i= BBI
Slide 33: RioPol's Valuation: Sales Volume and Assumptions
RioPol’s Valuation towee Reto Sales Volume and Assumptions [ se vole Gon tn TTT eee itll = HLT BB 2 ‘Suitly Private and Confidential
Slide 34: Net Revenue, COGS and EBITDA
RioPol’s Valuation Vana Poet ‘Net Revenue, COGS and EBITDA [[ Net Revenue (5 mition) [£068 (es mation) sine tse {One NNE OEE HME 2Oe see IME DOE SME soe «SME TONE ONE ZONE ame ME BE TE THEE OH ee) [ssretne . + Awan reo ePane and cps RePofs an ets, were este to oy based on CMAs projec dae eatenal mat
Slide 35: Free Cash Flow
RioPol’s Valuation Free Cash Flow ‘Free twanaation oth ogi ‘vainonRepeinPortgese [ sedate of FF U8 itn tame (yam om mm we Comin es . 8 «© 8 « wore er er | yee oS mmm mmm tater: tes ow ee [ sedate fe FF itn Came re er ee joe re reemeny a tater: eee Swiety Private and Confidential
Slide 36: Sensitivity Analysis of RioPol's Enterprise Value
RioPol’s Valuation towee Reto Sensitivity Analysis of RioPol’s Enterprise Value (DCF) [ Foi ve RPO US tin [ Fri oe ra wt a on Boam| oe tone tas A ee eee 6 eee an Pe ei] os eek el ae sees (yen stn Seca Ser ren 8 pe Sic Patan Coen Bes % a
Slide 37: RioPol's Valuation (100%)
RioPol’s Valuation RioPol’s Valuation (100 [ sa evo (5 ition [ senate vation tion) eoereievtoe ae) ori vor ee ee) ‘Gnetoas eoea7e%5) oe ‘nao casa) 10 uty vaue a 2 ay Your os =r te) ang at 647 tan 900, (Disarm ed ea 288 pe) a ‘Suitly Private and Confidential
Slide 38: VII. Quattor Química's Valuation
‘vainonRepeinPortgese VII. Quattor Quimica’s Valuation i= BBI
Slide 39: Quattor Química's Valuation: Sales Volume and Assumptions
Quattor Quimica’s Valuation towee Reto Sales Volume and Assumptions [ sss voto gourds [ Assonptone om aes an ae 2M 1 2H 20 2) oon amearnvanet a0 7] a a a a i aa a > increase in the average capacty utzation of 75.0% in 2010 to 96.0% trom nema enone ‘omeste Markt poets sales volume based on he alas be
Slide 40: Net Revenue, COGS and EBITDA
‘Free ranaition of he cgi! Quattor Quimica’s Valuation ‘abecbecrionisoageics ‘Net Revenue, COGS and EBITDA [ recover itn [e068 ion ey sry 2802 088 ane CEI EELE EL Ee ee eee [100 tno HFA agi) i Nam's average pie, Cutie Quinc's man raw mater, was caked sed on CMATS projected at in the iterboal marl, a
Slide 41: Free Cash Flow
Quattor Quimica’s Valuation Free Cash Flow ‘Free twanaation oth ogi ‘vainonRepeinPortgese [ sedate FF U0 ton (Tone? Ce ee ee en en er) 0) 08 (Omron Anetatn noe sw 7 ts © 6 0 @ @ mM ® @ ® ww CER. tree Coan ow » [ee [ aed aon fe FF itn (Tues ent ee (oreo Anette a a wore a Omerng cnt? 7 om @ mm @ @ Mm
Slide 42: Sensitivity Analysis of Quattor Química's Enterprise Value
‘Free twanaation oth ogi Quattor Quimica’s Valuation ‘vainonRepeinPortgese Sensitivity Analysis of Quattor Quimica's Enterprise Value (DCF) <r << am [oe oe ne am [xe ae aaa ee 2 S ason| zen 12 4900622008 S aum| ai ae 3s 3409 3607 Foam om tm we ome fam | are aoe sae ame . 290% | ras 1a 1.982 2019 200
Slide 43: Quattor Química's Valuation
Quattor Quimica’s Valuation Quattor Quimica’s Valuation ‘Free ranaition of he cgi! ‘vaunson Rept n Poruguese [ sa evo (80 ition [ sna te vation tion) mee Vue 00 t900 Eerie vate 3203 ‘Gnetons eoea7e%57 ‘0 ‘Dretoe enone 208 uty vaue 20 we zr Easy ve 6 on on te) ang at 647 tan 900, (heemang ne sr eng p
Slide 44: VIII. Quattor Petroquímica's Valuation
‘vainonRepeinPortgese VIII. Quattor Petroquimica’s Valuation i= BBI
Slide 45: Quattor Petroquímica's Valuation: Sales Volume and Assumptions
‘Free ranaition of he cgi! Quattor Petroquimica’s Valuation Sante epnthPotepe ‘Sales Volume and Assumptions << —— » Capacty expansions werent conse ey Domeste Markt pects sats volume based on he alate between te ‘ear owt eres and nabonl GOP growth stone ae90) 1 2 Bo ay > dma! Market cerence between
Slide 46: Net Revenue, COGS and EBITDA
Quattor Petroquimica’s Valuation ‘ache ecinponeees ‘Net Revenue, COGS and EBITDA [ recover itn [e068 ion om ran 1a Tue ME D0 OWE Me TE AEE mee mA ANE EM AM Hf oR ne ee [oo tno TOA Main) — ce as Propane’ averape rice, cuatr Petouiic' main aw mata was based ey ‘on CMATS projec cata nt atonal met, gust
Slide 47: Free Cash Flow
‘Free twanaation oth ogi Quattor Petroquimica’s Valuation voce oe Free Cash Flow [ete ctuon ft F (80 ion) (mete er (stn eo o8 8 # 8 © wo won ower oo o © © o oO Ong 7 mmm mw Carer net Pe a [ emtecatuon ft FF (tony (mee rr (At ee ee ee ee ee ee ee ower ee er ee er ore, rr ee ee er Cyrene ae a {itenanc
Slide 48: Sensitivity Analysis of Quattor Petroquímica's Enterprise Value
‘Free twanaation oth ogi Quattor Petroquimica’s Valuation Sante epnthPotepe Sensitivity Analysis of Quattor Petroquimica’s Enterprise Value (DCF) —— ————— i ee a sin[ aon tar aan aaa ee ne ee Bram | ne aoe tae ae ee ee ee ee er se on on rr nt cae ert Sentara Scag ran te pet “ Sic Patan Coen Bes a
Slide 49: Quattor Petroquímica's Valuation (100%)
Quattor Petroquimica’s Valuation Quattor Petroquimica's Valuation (100%) [ sa evo (80 ition) ee Vue a ee) Eerie vate zara ‘Gnetoas coo) cy ‘rete on0870007| os uy Your oo wr er Ena vave vee mea [hSurny naam pe ae cd ea 08 973) ‘Suitly Private and Confidential
Slide 50: IX. Quattor's Valuation
‘vainonRepeinPortgese IX. Quattor’s Valuation i= BBI
Slide 51: Definition of the Discount Rate Used for Quattor's Subsidiaries
‘Free twanaation oth ogi Quattor’s Valuation ‘vaunson Rept n Poruguese Definition of the Discount Rate Used in the Valuation of Quattor's Subsidiaries [| Wace cateutation ear Fte Fe 350% Ghul ara yl cf be US Hey 10yeus bond been 7820001192010 feet me —_Sesoler crpaaticarpanee were deer et manure bef
Slide 52: PIB's and Divisão Química's Valuation
‘Free twanaation oth ogi PIB’s and Divisao Quimica’s Valuation ‘Vatuibon Report in Portuese PIB's and Divisdo Quimica's Enterprise Values (EBITDA Multiple) {[comporabe Companies Mui! Yoel enc in $ilon) ‘Coneuny Coty —_—Cency Manet ee aoe © OA EVERTON MaSAB Meso we ory 7 cc ea ‘mnan USA uso 460 520 ™
Slide 53: Quattor Participações' Enterprise and Equity Values - DCF Analysis
‘Free ranaition of he cgi! Quattor Participagdes’ Valuation Vaden Rpertinertaguee Quattor Participagées’ Enterprise and Equity Values - DCF’ Analysis [ syns ra ne (SD iy ——[ iy x ao ne[ am ae as ane com tam tama F am| sor aoe aa es ne ee re oe Foam) wom oor oe aor Jom] ee re rama a aos ues see ase t
Slide 54: Quattor Participações' Valuation
Quattor Participagées’ Valuation Quattor Participagées’ Valuation ‘Free ranaition of he cgi! ‘vaunson Rept n Poruguese [ soma ot vation (80 mito [ senate ato mtn) — = | i oy rs ct sca twos tots, eer sin a mar Peensrs ts as una Prone aay se 2007 econo ncn e “ « et Concer ™ ” « re * * 2 re “ 2 * Tener
Slide 55: Appendix
Free tranalation of the orginal ‘vainonRepeinPortgese Vil. Appendix i= BBI
Slide 56: I. Glossary
Free tranalation of the orginal ‘vainonRepeinPortgese |. Glossary i= BBI
Slide 57: Glossary
Glossary towee Reto Used Terms Term Definition ‘weasres te pa of teases Hana vate atcannal be nilialedy fhe Svrscaton ode by te portato ot et: 6 many hy asses, because ts colt wn te retun oft erases at are nto prteo, Bala canbe estat {ern conpanes sng eresion ans gata sock market nex Bresso Banco er
Slide 58: Glossary (Cont.)
Glossary (Cont.) ‘Free tranaatin oth ogi ‘vaunson Rept n Poruguese Used Terms Term Definition TDA Earings Bote ree, Tax, Dereon an Amortization ees merging Mares Bond Index tacks tol eum forded esta det nerumensln he emerging mares eau ‘Shareotes Eauty aut vabe aury vate vA Et Vint ete Fer Free cae
Slide 59: Glossary (Cont.)
‘Free tranaatin oth ogi Glossary (Cont.) ‘Vatuibon Report in Portuese Used Terms Term Definition More cium Deny Peter Re Masts Premium: tek prism can be te expecta cen above te sk tee terest ae etcaen ‘Sor Tem Cash and Cash Equant wn gh baty Net et ‘eet mrs cunt cash an cash eavaents NoptaT Net Opti
Slide 60: II. Net Debt Calculation
‘vainonRepeinPortgese Il. Net Debt Calculation i= BBI
Slide 61: Detailed Calculation of Braskem's Net Debt
Detailed Calculation of Braskem’s Net Debt As of 09/30/2009 (RS million) ‘Free tranaatin oth ogi ‘vainonRepeinPortgese 6 ‘Suitly Private and Confidential
Slide 62: Rio Polímeros S.A. Addendum to audit services proposal
Rio Polímeros S.A. Addendum to the proposal for the provision of independent audit services June 2010 PricewaterhouseCoopers Rua da Candelária, 65 - 11º, 14°, 15º e 16° Cjs. 1302 a 1304 20091-020 - Rio de Janeiro - RJ - Brazil Caixa Postal 949 Telephone +55 (21) 3232-6112 Fax +55 (21) 2516-6319 pwc.