Braskem presented important strategic advances and consistent evolution of its
operational results in 2005, improving the performance and consolidating its growth platform that aims at positioning the company among the international etrochemical companies with higher potential of value creation. The net profit reached in 2005 was R$ 677 million, aligned with the profit of R$ 691 million resulted in 2004, what confirms the competitiveness of the integrated business model of Braskem. The EBITDA result in the fourth quarter reflected expressive progress in relation with the former quarter, jumping from R$ 353 million to R$ 480 million.

"In 2005, Braskem produced and sold more, increased the exportations, kept the EBITDA and the profit in high levels and invested almost the double than in 2004, even in a non favorable context characterized by the high prices of NAFTA and appreciation of Brazilian currency", states José Carlos Grubisich, president of the company. "This performance reinforced even more the main fundaments of our strategic positioning which represent leadership in the market like competitiveness in costs and technologic autonomy, what makes Braskem more well prepared to accelerate its growth programs and its internationalization process", he explains.

The occupation levels of production capacity in 2005 remained elevated, surpassing 91% in all industrial units of Braskem. This performance contributed for an increase of 8% of the thermoplastic resin volumes commercialized by the company in the domestic and in the international markets in relation to 2004. The exportations registered a 35% growth, increasing from US$ 710 million to US$ 959 million, confirming the strategic agility and flexibility of the company reinforcing the presence of the company in the international market and minimizing the impact of the lower growth level of the internal market.

Even with the high valuation of the Brazilian currency verified in 2005, Braskem
registered a net income of R$ 11,6 billion in the year, what represents an increase of 5% in relation to the former year. When expressed in dollars, the net income increased 26%, reaching US$ 4,8 billion.

The EBITDA of Braskem totalized R$ 2,1 billion in 2005, the equivalent to US$ 850 million, practically aligned with EBITDA in dollar verified in 2004. The EBITDA argin was 18% against 23% reached in the former year.

Braskem confirmed its commitment with the discipline of capital and with the return over the capital invested. The indebtedness of the company in reais (Brazilian currency) was reduced in 27%, to R$ 2,8 billion in December of 2005, its average deadline was stretched to 11 years, and the relation between the net debt and the EBITDA decreased from 1,52 to 1,36 in the year. The classification of risk of the company in a worldwide scale and foreign currency, measured by S&P, evolved from BB - to BB +, closing the year better than the one registered in Brazil.

At the end of the year, Braskem counted with a cash balance and a financial applications balance of R$ 2,2 billion, equivalent to around US$ 1,0 billion, what provides the company with the operational and financial flexibility necessary for developing the strategic movements anticipated in its growth plans.

In 2005, the company proceeded with the accelerated implementation of the  Braskem Program focused on the operational excellence and on the productivity improvement, what allows the company to expect that the gains, estimated in R$ 420 million in annualized and recurrent bases might be anticipated to the end of 2006. Until last December, Braskem had reached annualized gains of R$ 256 million, 51% more than the goal for this phase.

The investments in 2005 practically doubled in relation with the former year, increasing from R$ 374 million to R$ 717 million. "According with the business plan for 2006, Braskem will invest more than R$ 900 million along this year, almost tripling the amount invested in only two years", says Grubisich. "It"s a clear demonstration of the reliability of the company in the country and in the thermoplastic resin development", adds Grubisich. In this context, Braskem is implementing, in partnership with Petroquisa, a new industrial plant in Paulinia, SP, with capacity to produce until 350 thousand tons/year of polypropylene. It is also amplifying the polyethylene and isoprene production capacity in Camaçari, BA, as well as its raw material tanking park. Additionally, the company has projects for building new industrial units in Venezuela and Bolivia, accessing competitive raw materials. A R$ 130 million investment to be done in the Formula Braskem Program, aims at implementing a new integrated system of management in 2006 and it should bring annual gains estimated in R$ R$ 150 million.

In 2005, Braskem reached an important evolution in practically all its indicators related to Health, Safety and Environment, area in which it invested R$ 150 million in the period. The company was rewarded, due to its qualification, with the integration in the Sustainable Development Bovespa Index, a differentiated list of stocks, presenting the companies that performed in favor of the sustainable development and of social responsibility.

Braskem received another important recognition when conquering two of the most important awards given to the most innovative companies in the country - The Finep Prize of Technology and Innovation and the Abiquim of technology. Furthermore, Braskem became the first petrochemical company in Brazil to deposit a patent in nanotechnology, the most promising frontier of polymers science and of materials in general.