Conference Call. March 2009

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Norma McDowell
7 years ago
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UNIPAR Portfolio March - 2009 Directly Controlled Companies 50% 33.

2 UNIPAR Portfolio March Directly Controlled Companies 50% 33.3% 60% 100% Participações Indirectly Controlled Companies Divisão Química 100% 91.1% 66.0% 99.3% Químicos Básicos (*) Petroquímica 8.43% 9.02% (*) formerly PQU - 1 -

3 International Petrochemical Scenario

4 Raw Materials Prices Brent Oil & Naphtha Europe Brent Crude Oil (US$ /bbl) % % % 72,6 97,5 34% -52% Naphtha/Brent Ratio % % % 9,3 8,1-13% -22% Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09 Feb/09 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09 Feb/09 Naphtha (US$/t) % % -62% Q08 Strong decline of oil and naphtha prices global crisis Lower naphtha/brent ratio indicates reduced activity along the petrochemical chain in Europe 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09 Feb/ Source: CMAI

1 8.7 8.1 8.3 % % 9.3 8.1-13% 9,3 8,1-13% -22% 6.5 8.0 9.

5 Raw Materials Prices Natural Gas & Ethane US Gulf Natural Gas (US$/MM BTU) % Ethane / Natural Gas Ratio % % % % % Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan 09 Feb 09 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan 09 Feb 09 Ethane (USc/gal) % % - 61% Q08: Strong reduction of ethane and natural gas prices decline of ethane/ng shows lower activity in U.S. petrochemical market 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan 09 Feb Source: CMAI

1 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan 09 Feb 09 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan 09 Feb 09 Ethane (USc/gal) 104.4 101.3 105.2 108.9 59.

6 PE s & PP Prices International Market EUROPE USA 3,000 LDPE LLDPE HDPE PP Price - US$/t 3,000 Price - US$/t HDPE LDPE LLDPE PP 2,500 2,000 1,500 1, Q08 4Q08 % LDPE 2,318 1,248-46% LLDPE 2,290 1,252-45% HDPE 2,263 1,287-43% PP ,251-37% 1,060 1,034 1, ,500 2,000 1,500 1, Q08 4Q08 % LDPE 2,285 1,573-31% LLDPE 2,109 1,396-34% HDPE 2,219 1,506-32% PP 2,337 1,367-42% 1,433 1,367 1,257 1,168 % % LDPE 1,736 1,916 10% PEBD % LLDPE 1,645 1,865 13% PEBDL % HDPE 1,733 1,906 10% PEAD % PP 1,672 1,761 5% PP % % % LDPE 1,681 1,971 17% PEBD % LLDPE 1,505 1,795 19% PEBDL % HDPE 1,615 1,905 18% PEAD % PP 1,699 1,932 14% PP % 4Q08: Sharp decline in international PE and PP prices. Expressive decline in market activity (international crisis) Europe: sharper reduction (stronger signs of recession) Source: CMAI

979 1,251-37% 1,060 1,034 1,021 969 2,500 2,000 1,500 1,000 500 3Q08 4Q08 % LDPE 2,285 1,573-31% LLDPE 2,109 1,396-34% HDPE 2,219 1,506-32% PP 2,337 1,367-42% 1,433 1,367 1,257 1,168 % % LDPE 1,736

LDPE - Ethylene Integrated Margin International Market EUROPE - US$/t USA - US$/t -9,1% 779 819 861 815 839 760 891-68% 889 898 938 883 953 1.035 1.233 1.121 1.006 1.

7 LDPE - Ethylene Integrated Margin International Market EUROPE - US$/t USA - US$/t -9,1% % Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09Feb/09 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09Feb/09 % Integrated Margin % % Integrated Margin 902 1,086 20% 4Q08: Strong decline of integrated margin Europe showing signs of recession 4Q08: Lower margins Reduction in margins due to lower demand Source: CMAI

042 289 395 404 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09Feb/09 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Jan/09Feb/09 %

8 Domestic Scenario

9 Domestic Market Thermoplastics Quarterly Evolution thousands of tons Polyethylene Polietilenos -(PE s) (PE s) % vs thousands of tons Polyethylene (PE s) 1,904 1, % ,589 1,489 1Q07 1T07 2Q07 2T07 3Q07 3T07 4Q07 4T07 1Q08 1T08 2Q08 2T08 3Q08 3T08 4Q08 4T08 Polypropylene Polipropileno -(PP) % Polypropylene (PP) 1,227-1% 1, ,061 1,032 1Q07 1T07 2Q07 2T07 3Q07 3T07 4Q07 4T07 1Q08 1T08 2Q08 2T08 3Q08 3T08 4Q08 4T08 Termoplásticos Thermoplastics 1,045 1,095 1,106 1,171 1, ,230-17% 1, Thermoplastics 4,418 4, % 1,020 3,726 3,512 1Q07 1T07 2Q07 2T07 3Q07 3T07 4Q07 4T07 1Q08 1T08 2Q08 2T08 3Q08 3T08 4Q08 4T Q08: Lower domestic demand (crisis + seasonal effect) 2008: Higher share of imports in domestic demand - 6 -

Polypropylene Polipropileno -(PP) 323 338 336-26% 309 316 281 40 295 53 53 45 43 39 41 250 40 283 242 264 273 285 283 254 210 2007 2008 Polypropylene (PP) 1,227-1% 1,218 166 186 1,061 1,032 1Q07 1T07

10 Domestic Market PE s & PP Prices (*) Domestic Market Prices (ICIS) 5,000 4,500 4,000 3,500 3,000 LDPE LLDPE HDPE PP 3Q08 4Q08 % LDPE 4,758 4,714-1% LLDPE 4,646 4,559-2% HDPE 4,717 4,642-2% PP 4,907 4,851-1% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 4,851 4,714 4,642 4,559 Annual Average Price % LDPE PEBD 4, , % 7% LLDPE PEBDL 4, , % 5% HDPE PEAD 4, , % 11% PP PP 4, , % 9% Though the annual average prices were higher compared to 2007, 4Q08 prices showed signs of weakening (falling domestic demand + decline in international prices + high inventories) (*) in R$/t, ex-icms, including PIS/Cofins - 7 -

326 7% 7% LLDPE PEBDL 4,033 4.033 4,245 4.245 5% 5% HDPE PEAD 4,058 4.058 4,487 4.487 11% 11% PP PP 4,282 4.282 4,668 4.

11 UNIPAR Results - Consolidated / Parent Company

Net Income Loss of R$ 152 million in 2008 versus Net Income of R$ 145 million in 2007 Exchange variation on foreign currency debt of indirect subsidiaries Riopol and Quattor Petroquímica Current

12 Net Income Loss of R$ 152 million in 2008 versus Net Income of R$ 145 million in 2007 Exchange variation on foreign currency debt of indirect subsidiaries Riopol and Quattor Petroquímica Current petrochemical industry scenario: compression of margins and lower demand, especially in 4Q08 Maintenance stoppage in the ABC Petrochemical Complex (operating expenses of R$ 51 million) Non-recurring expenses of R$ 53 million (provision for inventory losses) Non-operating gain of R$ 461 million sale of Petroflex and União Terminais Impact of Law 11638/07 Loss of R$ 50 million in 4Q08 Quarterly Results- R$ million 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q (18) 25.4 (50) Excluding the impacts of Law 11638/07 of R$ 75.8 million on UNIPAR s statement, 4Q08 result would be reverted to a Net Income of R$ 25.4 million (140) - 8 -

expenses of R$ 53 million (provision for inventory losses) Non-operating gain of R$ 461 million sale of Petroflex and União Terminais Impact of Law 11638/07 Loss of R$ 50 million in 4Q08 Quarterly

13 Performance Indicator UNIPAR - Consolidated Net Revenue - R$ million - 2,180 2,306 2,544 2,815 4,594 Gross Profit - R$ million EBITDA - R$ million - Net Income - R$ million (152) Impacted by the provision for inventory losses in the amount of R$ 53 MM and operational expenses of R$ 51 MM related to scheduled QQB stoppages The consolidation of 100% of Quattor Participações, beyond the impacts of Law 11638/07 and non-recurring expenses, distorts comparisons with previous periods - 9 -

provision for inventory losses in the amount of R$ 53 MM and operational expenses of R$ 51 MM related to scheduled QQB stoppages 2004 2005 2006 The

14 Debt in Dec, UNIPAR Consolidated Total Debt Foreign Currency 20% - R$ 9,008 million - Short-Term 17% Net Debt - R$ million - Total Debt 9,008 Cash and Cash Equivalents 1,291 Net Debt 7,717 Brazilian Currency 80% Long-Term 83% Debt predominantly long-term and pegged to local currency

Cash and Cash Equivalents 1,291 Net Debt 7,717 Brazilian Currency 80%

15 Results 2008 UNIPAR - Parent Company INCOME STATEMENT - R$ million % Net Revenues % COGS (46.1) (509.3) -91% Gross Profit % Gross Margin% 1.1% 6.7% -84% Operating Expenses (204.0) (60.5) >200% Equity Income (299.3) % Financial Result (73.9) (54.1) 37% Operating Income (576.6) >200% Non-Operating Result (1.5) >200% Income Tax and Social Contribution (54.1) Reversal of Interest on Equity Net Income (152.3) % Reduced equity income due to narrower margins and foreign exchange impact on indirect subsidiaries with foreign-currency debt (mainly Riopol and Quattor Petroquímica)

6) 146.5 >200% Non-Operating Result 457.1 (1.5) >200% Income Tax and Social Contribution (54.1) 0.0 - Reversal of Interest on Equity 21.4 0.0 - Net Income (152.3) 145.

16 Debt in Dec, UNIPAR - Parent Company Total Debt - R$ 908 million Short-termCP 6% Net Debt R$ million Total Debt 908. Short Term 50. Long Term 858 Cash and Cash Equivalents 437 Long-term LP 94% Net Debt 471 Total debt predominantly in long- term and fully in Brazilian currency

Long Term 858 Cash and Cash Equivalents 437 Long-term LP 94% Net Debt

17 Directly Controlled Companies

18 Conference Call Directly Controlled Companies 2008 vs 2007 UNIPAR COMERCIAL EBITDA % 12.4 CARBOCLORO EBITDA + 26% POLIBUTENOS EBITDA % 8.9 Net Income % 4.2 Net Income + 7% Net Income % % volume sales. - 7% unit gross margin Narrower margins due to higher resale costs. + 5% volume sales. + 15% average sales price (recovery of international caustic prices + US$ appreciation). + 11% unit gross margin % volume sales and + 12% average sales price + 21% average feedstock price (isobutylene) - 18% unit gross margin (isobutylene price linked to naphtha quotation).

- 7% unit gross margin Narrower margins due to higher resale costs. + 5% volume sales.

19 Quattor Participações 2008 Consolidated INCOME STATEMENT - R$ million Net Revenue 3,706 Cost of Products and Services Sold (3,140) Gross Profit 566 Gross Margin,% 0 Operating Expenses (456) Financial Expenses (842) Equity Income (86) Operating Income (818) Non-Operating Revenue 0 Income and Social Contrbution Taxes 107 Minority Shareholders 46 Net Income (Loss) (665) Exchange variation on debt in foreign currency of Rio Polímeros and Quattor Petroquímica monetary losses of R$ 550 million Impact of non-recurring expenses recached R$ 112 million, including provision for inventories loss (R$ 53 million) and maintenance stoppage of ABC Complex (R$ 51 million)

Shareholders 46 Net Income (Loss) (665) Exchange variation on debt in foreign currency of Rio Polímeros and Quattor Petroquímica monetary losses of R$ 550 million Impact

20 Indirectly Controlled Companies

21 Conference Call Indirectly Controlled Companies 2008 vs 2007 DIVISÃO QUÍMICA QUATTOR QUÍMICOS BÁSICOS % EBITDA 34-12% volume sales + 74% unit gross margin (higher cumene-naphtha spread + US dollar appreciation) 307 EBITDA - 26% volume sales -49% + 12% average sales price % unit gross margin POLIETILENOS UNIÃO RIO POLIMEROS QUATTOR PETROQUÍMICA EBITDA EBITDA EBITDA 73-49% % % % volume sales + 10% average sales price - 42% unit gross margin - 9% PE volume sales - 17% unit gross margin % PP volume sales - 27% unit gross margin

22 Conference Call Indirectly Controlled Companies 2008 vs 2007 DIVISÃO QUÍMICA Net Income + 70% 22 QUATTOR QUÍMICOS BÁSICOS Net Income % 17 Higher margins Drop of volume sales and unit margins POLIETILENOS UNIÃO Net Income (*) 37 RIO POLIMEROS Net Income 133 QUATTOR PETROQUÍMICA 145 Net Income - 110% (4) (*) after goodwill amortization Lower margins <200% (160) Lower PE sales and unit margin Exchange variation on foreign currency debt <200% (340) Lower PP sales and unit margin Exchange variation on foreign currency debt

Expansion Programm Companies Scope Total Investment Disbursed until Dec 2008 Progress Conclusion R$ million R$ million % % Indirectly Controlled Companies.

23 Expansion Programm Companies Scope Total Investment Disbursed until Dec 2008 Progress Conclusion R$ million R$ million % % Indirectly Controlled Companies. Carbocloro + 100,000 mt/yr of chlorine % 100% 3Q08. Polibutenos + 15,000 mt/yr of polyisobutylenes % 80% 1Q09. Quattor Participações 2,331 2,084 89% - - Divisão Química + 100,000 mt/yr of cumene % 100% 4Q08 Quattor Químicos Básicos + 420,000 mt/yr of basic petrochemicals 1,532 1,322 86% 94% 2Q09 Polietilenos União + 230,000 mt/yr of PE % 99% 1Q09 Quattor Petroquímica - RJ + 100,000 mt/yr of PP % 100% 2Q08 Quattor Petroquímica - SP + 90,000 mt/yr of PP % 99% 1Q09 TOTAL 2,634 2,366 90% - - Expansion programm almost fully concluded. QQB and Polibutenos projects are in the final step of their implementation Long-term financing corresponding to 70% of total investment

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