(Commission File No. 1-14862 )

EXECUTIVE SUMMARY

In 3Q13, the world economy was marked by improvement in euro zone performance, with signs that the region has begun to emerge from its crisis. Germany and France recorded stronger economic growth, while Spain, after two straight years of negative GDP growth, presented positive growth, signaling the end of its recession. In China, GDP growth strengthened in the quarter to reach 7.8%, alleviating fears of a slowdown in the country's economy. Despite the quarter marked by recovery, the situation in the world economy remains fragile.

Geopolitical issues related to Syria drove oil prices higher in 3Q13, leading the average price of naphtha (the main feedstock used by the petrochemical industry) to increase 9% from 2Q13. The prices of resins¹ and basic petrochemicals² followed the same trend, increasing 4% and 3%, respectively.

In the domestic market, apparent consumption of thermoplastic resins in 3Q13 amounted to 1.3 million tons, decreasing 8% from the previous quarter, in response to the restocking trend in 2Q13 and the slowdown in industrial production. In line with this trend, Braskem’s sales amounted to 898 kton, down 5%, which led its market share to expand 2 p.p. to 68% in the quarter.

In the first nine months of the year, estimated demand for thermoplastic resins reached 4.0 million tons, increasing 9% from the year-ago period, driven by the performance of the agricultural, automotive and infrastructure sectors. Meanwhile, the Company recorded sales of 2.8 million tons, increasing 7% between the periods.

Braskem’s crackers operated at an average capacity utilization rate of 92% in 3Q13, decreasing 2 p.p. from 2Q13, due to the power outage that affected Northeastern states in late August and forced unscheduled shutdowns at the Company’s plants in the region.

Braskem’s EBITDA amounted to R$1,650 million in 3Q13. In U.S. dollar, EBITDA was US$720 million, increasing 42% from 2Q13. This performance was driven by (i) the better level of spreads for resins and basic petrochemicals in the international market; (ii) the sale of resins and basic petrochemicals produced with a lower feedstock costs, since the three-month moving average for the naphtha price, the reference for domestic supply, decreased 5% from 2Q13; (iii) the positive impact of the PIS/COFINS tax relief on raw material purchases; and (iv) the impact of R$52 million from the recognition of extemporaneous PIS/COFINS tax credits from Riopol.

In 9M13, EBITDA stood at R$3,638 million. In U.S. dollar, EBITDA was US$1,696 million, increasing 27% from the same period in 2012. The main factors driving this improvement were (i) the increase in international spreads for resins and basic petrochemicals; (ii) the higher sales volume in the domestic market; and (iii) the tax relief for raw materials purchases mentioned above.

Reflecting the better operating performance, Braskem recorded net income of R$394 million in 3Q13 and of R$492 million in the year to date.

On September 30, 2013, Braskem’s net debt stood at US$6,555 million, decreasing 6% from the end of 2Q13. The reduction is explained by the reimbursement, in the amount of US$649 million, of the financial resources advanced by Braskem to the Mexico project via the bridge loan. Financial leverage measured by the ratio of net debt to EBITDA in U.S. dollar decreased from 3.01x to 2.73x, also reflecting the EBITDA growth in the last 12 months of 12%.

In September, approval was given for PIS and COFINS tax relief on feedstock purchases by the first and second generation of chemical producers. This measure was one of the proposals made by the Chemical Industry Competitiveness Council and aims to improve the competitiveness of the local industry, which still suffers from issues related to infrastructure, productivity and currency fluctuations.

The Brazilian petrochemical industry recorded a trade deficit of US$32 billion, in the last twelve months ended on September 2013, which indicates the need for a more comprehensive industrial policy that continues to strengthen the country's industry and to attract new investments to the sector.

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PERFORMANCE

4  Net Revenue

In 3Q13, Braskem's consolidated net revenue amounted to US$4.7 billion, increasing 2% from the previous quarter, due to opportunities created by the higher volume of naphtha/condensate resales in the period. On the same basis, net revenue in Brazilian real reached R$10.7 billion, increasing 12%, reflecting the 11% U.S. dollar appreciation against the Brazilian real. Excluding resales volumes from the analysis, net revenue in 3Q13 was 1.4% lower in U.S. dollar and 9% higher in Brazilian real.

Compared to 3Q12, consolidated net revenue in U.S. dollar was 3% higher. In Brazilian real, the 16% growth is mainly due to the impact of the 13% U.S. dollar average appreciation between the periods.

Export revenue in 3Q13 was US$2.1 billion, increasing 9% from 2Q13, influenced by the higher resales volume, as explained above. Compared to 3Q12, export revenue grew by 10%, which is explained by the higher average sales price, in line with the international market, and by the increase in resales volume.

In 9M13, Braskem’s consolidated net revenue amounted to US$13.9 billion, up 2% from the year-ago period. The higher average price, which accompanied the improvement in the international market, partially offset the lower total sales volume. In Brazilian real, revenue was R$29.5 billion, increasing 12%, due to the 10% U.S. dollar appreciation between the periods.

Export revenue amounted to US$6.0 billion, in line with the first nine months of 2012, explained by the same factors described above.

Highlights by Segment

4  Capacity utilization rate

Braskem’s plants continued to operate at a higher average capacity utilization rate in 3Q13, despite the power outage that occurred on August 28, which affected the entire Northeast and caused unscheduled shutdowns at Braskem’s plants in the region. The exception was the utilization rate of PVC, which stood at 72% and was also affected by the anticipation of its scheduled maintenance shutdown. The Company’s capacity utilization rates are shown below:

4  Polyolefins  

Brazilian market: estimated demand for Polyolefins (PE and PP) was 1,008 kton in 3Q13, decreasing 7% from 2Q13. The reduction is explained by the restocking trend observed throughout the chain in the first half of the year and the resulting anticipation of a portion of sales volumes, particularly in the food and retail sectors. In relation to 3Q12, when resin demand responded more robustly to the government stimulus measures, demand contracted by 3%.

In the comparison with 9M12, the market expanded by 8% to reach 3.1 million tons, led by growth in the automotive, food, construction and agribusiness sectors.

Production: production volume amounted to 1,069 kton in 3Q13, virtually stable compared to the previous quarter. In relation to 3Q12, production decreased 3%, due to the scheduled maintenance shutdown at one of the PP plants.

Domestic sales: in 3Q13 sales volume came to 753 kton, down 4% from 2Q13, affected by the slowdown in domestic demand. Braskem’s market share, however, expanded by 2 p.p. to 75%. Compared to 3Q12, sales contracted by 6%, which is mainly explained by the weaker domestic market.

Export sales: in 3Q13, exports amounted to 304 kton, increasing 16% from 2Q13, reflecting the lower level of domestic demand in the quarter and the opportunities to export overseas. In relation to 3Q12, sales decreased by 14%, which is explained by the restocking trend in anticipation of the scheduled maintenance shutdown in 4Q13 and by the lower production volume, as mentioned above.

In 9M13, polyolefins production was 3,193 kton, decreasing 1%. Domestic sales reached 2,295 kton, growing 5% from the same period in 2012, driven by stronger domestic demand. Exports reached 807 kton, down 20% from 9M12, due to the redirecting of sales to the domestic market and to the restocking trend.

4  Vinyls  

Brazilian market: in 3Q13, PVC demand came to 302 kton, down 14% from 2Q13, which is explained by the consumption of inventories built up in the chain in the first half of the year, especially in the construction industry. Compared to 3Q12, demand decreased by 2%.

In 9M13, PVC consumption reached 964 kton, growing 11% on the year-ago period, driven by the restocking trend and the performance of the infrastructure and construction sectors.

Production: PVC production totaled 129 kton in 3Q13, decreasing 12% from 2Q13, reflecting the power supply interruption and the anticipation of its scheduled maintenance shutdown. Meanwhile, caustic soda production amounted to 109 kton. Compared to 3Q12, PVC and caustic soda production decreased by 8% and 14%, respectively. 

Domestic sales: following the slowdown in domestic demand, PVC sales came to 145 kton in the quarter, down 9% from 2Q13; however, market share expanded by 2 p.p. to 48% in the quarter. Despite the lower production volume, caustic soda sales grew 12%, reflecting the imports made to take advantage of opportunities in the local market. In relation to 3Q12, PVC sales decreased 6%, while caustic soda sales increased 10%.

In 9M13, PVC production amounted to 423 kton, increasing 16% from 9M12, benefitting from the startup of the new plant in Alagoas. PVC sales came to 471 kton, growing 13%. Caustic soda production was 335 kton, decreasing 2% from the same period of 2012, while caustic soda sales amounted to 357 kton, growing 5% driven by the better demand.

4  Basic Petrochemicals

Ethylene production in 3Q13 totaled 866 kton, down 1% from 2Q13, impacted by the power outage that affected plants in the country's Northeast region. Compared to 3Q12, production volume was virtually stable.
 

Ethylene and propylene: sales in 3Q13 reached 241 kton, increasing 3% from 2Q13, reflecting the resumption of production by certain clients that had carried out scheduled maintenance shutdowns. Compared to 3Q12, sales were down 8%, driven by weaker demand for second generation products.

Butadiene: sales volume amounted to 90 kton in 3Q13, down 8% from 2Q13, explained by the lower production caused by the scheduled and unscheduled maintenance shutdowns, and by the lower demand in the international market. In relation to 3Q12, sales decreased 19%.

BTX: sales totaled 299 kton in 3Q13, growing 4% from 2Q13, explained by the better production mix and the opportunities in the market (both domestic and export). In relation to 3Q12, sales grew by 12%.

In 9M13, ethylene/propylene sales volume decreased by 2% from the year-ago period. Sales of butadiene, however, grew 11%, reflecting the expansion in the product's production capacity. BTX sales volume was up 5% in the period.

4  Braskem America (USA and Europe)

Market: U.S. demand for PP was  lower than in 2Q13, affected by the higher propylene price, whose supply was reduced by the unscheduled maintenance shutdowns. Reflecting the period's seasonality (holiday period), PP demand in the European market contracted by 6% in the quarter.

Production: in 3Q13, production volume amounted to 438 kton, decreasing 4% from 2Q13, due to the scheduled maintenance shutdowns in Germany and the lower demand. Compared to 3Q12, production was 2% down.

Sales: accompanying the performance of the U.S. and European markets, sales were 432 kton in 3Q13, decreasing 7% and 4% from 2Q13 and 3Q12, respectively.

In 9M13, sales increased by 2% from the same period of 2012, reflecting the gradual improvement in the macroeconomic scenario.

4  Cost of Goods Sold

Braskem's cost of goods sold (COGS) in 3Q13 amounted to R$9.0 billion, increasing 6% on the prior quarter. The higher sales volume, explained by the higher resales volume and increase in the propylene price, were partially offset by the decrease in the ARA naphtha price reference for domestic supply (three month moving average) to US$853/ton, from US$901/ton in the prior quarter, and by the PIS and COFINS tax relief on raw material purchases that began to be recorded in the middle of last quarter. The 11% U.S. dollar appreciation against the Brazilian real generated a loss of R$747 million. Braskem acquires around 70% of its naphtha needs from Petrobras, with the remainder imported directly from suppliers in North African countries, Argentina, Mexico and Venezuela. The ARA naphtha price, which is the price reference for imported naphtha, stood at US$907/ton in the quarter, increasing 9% from 2Q13 (US$831/ton). Regarding the average gas price, the Mont Belvieu reference price for ethane decreased 9% from 2Q13 to US$25 cts/gal (US$184/ton), reflecting the supply improvement. The Mont Belvieu reference price for propane moved higher, however, increasing 13% from 2Q13 to US$103 cts/gal (US$538/ton). The increase is explained by the higher volume of exports, which helped to balance the market. For propylene, the USG price reference averaged US$1,506/ton, increasing 8%, which is explained by the unscheduled shutdowns and by the restocking trend in anticipation of the scheduled shutdowns at refineries in the Gulf region (hurricane season).

4  Selling, General and Administrative Expenses (SG&A)

In 3Q13, SG&A Expenses amounted to R$542 million, increasing R$47 million on the prior quarter. Compared to 3Q12, SG&A expenses increased by R$25 million or 5%.

Selling Expenses came to R$242 million, in line with the previous quarter. Compared to 3Q12, selling expenses fell R$4 million, reflecting the reduction in sales volume between the periods.

In the quarter, General and Administrative Expenses amounted to R$300 million, increasing R$45 million from 2Q13. The increase is explained by nonrecurring expenses with outsourced services, such as consulting and auditing services and by the increases in the health insurance policy and in payroll that occurred in July. Compared to 3Q12, general and administrative expenses increased by R$29 million.

In 9M13, SG&A expenses amounted to R$1.5 billion, in line with the same period of 2012, reflecting the Company’s efforts to reduce its fixed costs, despite the continued inflationary pressures.  

4  EBITDA 

Braskem’s consolidated EBITDA³ in 3Q13 amounted to R$1,650 million or US$720 million, increasing 57% and 42%, respectively, from 2Q13. EBITDA margin excluding naphtha resales stood at 16.5%, expanding 5.1 p.p. The main factors contributing to this performance were (i) the sales of resins and basic petrochemicals produced with lower feedstock costs, since the three-month moving average of the naphtha price, the reference for domestic supply, decreased by 5%; (ii) the level of spreads for resins and basic petrochemicals in the international market; (iii) the PIS/COFINS tax relief on the purchase of raw materials; and (iv) the impact of R$52 million from the recognition of extemporaneous PIS/COFINS tax credits from Riopol.

Compared to 3Q12, EBITDA increased by R$720 million or US$261 million. This performance is basically explained by (i) the recovery in thermoplastic resin and basic petrochemicals spreads in the international market of 29% and 24%, respectively, and (ii) the PIS/COFINS tax relief on raw material purchases.

³ EBITDA is defined as the net result in the period plus taxes on profit (income tax and social contribution), the financial result and depreciation, amortization and depletion. The Company opts to present adjusted EBITDA, which excludes or adds other items from the statement of operations that help improve the information on its potential gross cash generation.

EBITDA is used by the Company’s management as a measure of performance, but does not represent cash flow for the periods presented and should not be considered a substitute for net income or an indicator of liquidity. The Company believes that in addition to serving as a measure of operating performance, EBITDA allows for comparisons with other companies. Note however that EBITDA is not a measure established in accordance with the international accounting standards (IFRS) and is presented in accordance with CVM Instruction 527 of October 4, 2012.

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4  Net Financial Result

The net financial result in 3Q13 was an expense of R$536 million, compared to an expense of R$666 million in the prior quarter.

Braskem holds net exposure to the U.S. dollar (more dollar-denominated liabilities than dollar-denominated assets), therefore any change in the exchange rate has an impact on the accounting financial result. On September 30, 2013, this net exposure was composed of: (i) in operations, 69% of supplier accounts, which was partially offset by 70% of accounts receivable; and (ii) in the capital structure, by 73% of net debt. Since the Company’s operating cash flow is heavily linked to the U.S. dollar, the Company’s believes that maintaining this level of net exposure to the dollar in liabilities acts as a natural hedge, which is in compliance with its Financial Management Policy. Virtually 100% of its revenue is directly or indirectly pegged to the variation in the U.S. dollar exchange rate and approximately 80% of its costs are also pegged to this currency.

Since the Company regularly exports part of its production and aiming to better reflect the effects of exchange variation on its result, it designated, as of May 1^st, part of its dollar-denominated liabilities as a hedge for its future exports, in compliance with accounting standards IAS 39 and CPC 38. As a result, the exchange variation from these liabilities, which amounts to US$6,757 million, is temporarily recorded under shareholders’ equity and transferred to the income statement only when such exports occur, which enables the simultaneous recognition of the currency’s impact on liabilities and on exports.

In 3Q13, the effect from the 1% appreciation in the U.S. dollar⁴ on the net exposure of liabilities not designated as hedge accounting generated a gain in the financial result of R$16 million.

It is important to mention that in both cases the effect has no immediate impact on the Company’s cash position, since the amount represents currency translation accounting impacts, especially on Braskem’s debt, with any expenditure occurring upon the maturity of the debt, which has an average term of 15 years (up from 14.5 years). The portion of debt denominated in U.S. dollar has an average term of 20.7 years.

If hedge accounting had not been adopted, exchange variation would have negatively impacted the financial result by R$1.3 billion and Braskem would have recorded a loss of R$526 million in 9M13.

Excluding the effects of exchange and monetary variation, the net financial result in 3Q13 was an expense of R$476 million, in line with the previous quarter. Compared to 3Q12, the net financial result increased by R$84 million.

On the same basis, the net financial result in 9M13 was an expense of R$1,310 million, increasing R$162 million from the prior-year period, which mainly reflects the application of the accounting rule regarding adjustment to present value due to the change in the payment term for raw material acquisitions in the domestic market to 90 days as of 2Q12.

The following table shows the composition of Braskem’s net financial result.

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4  Net Income / Loss

Braskem recorded net income of R$394 million in 3Q13 and of R$492 million in the year to date. In both cases, the result benefitted from the improvement in operating performance.

4  Capital Structure and Liquidity 

On September 30, 2013,Braskem’s consolidated gross debt stood at US$9,625 million. This amount considers the financing for the project in Mexico of US$1,484 million that was received by the subsidiary Braskem-Idesa on July 24, 2013. Since this investment is made via a project finance structure (70% debt and 30% equity) and the project's debt will be repaid using own cash generation (for more information, see note 14 of the Quarterly Information – Project Finance), for the purpose of analyzing the Company's debt this project will not be included.

In this context, the Company's gross debt stood at US$8,145 million, down 5% from the balance on June 30, 2013. The decline is explained mainly by the reimbursement of funds advanced to the project in Mexico by its shareholders via a bridge loan, which in the case of Braskem totaled US$649 million. In Brazilian real, the gross debt decreased by 4%. At the end of the period, 69% of gross debt was denominated in U.S. dollar.

The balance of cash and investments remained virtually stable, at US$1,590 million. In line with its strategy to maintain its high liquidity and financial health, the Company maintains three revolving stand-by credit facilities, with two in the aggregate amount of US$600 million and one in the amount of R$450 million, which do not include any restrictive covenants on withdrawals during times of Material Adverse Change (MAC Clause). Only prime banks with low default rates (credit default swap) and high credit ratings participated in the transactions.

As a result, Braskem’s net debt stood at US$6,555 million or R$14,618 million, which represents decreases of 6% and 5%, respectively. At the end of the period, 73% of net debt was denominated in U.S. dollar.

The EBITDA growth in the last 12 months of 12% (US$2.4 billion), combined with the reduction in net debt, led to a reduction from 3.01x to 2.73x in the Company’s financial leverage measured by the ratio of net debt to EBITDA in U.S. dollar. In Brazilian real, the leverage ratio decreased by 12% to 2.87x.  

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On September 30, 2013, the average debt term stood at approximately 15 years. Considering only the portion of debt denominated in dollar, the average debt term was around 20.7 years. The average cost of servicing the Company's debt on September 30, 2013 was 6.24% in U.S. dollar and 9.01% in Brazilian real, compared to 5.90% and 8.26%, respectively, in the prior quarter.

The following charts show Braskem’s gross debt by category and indexer.

The following chart shows the Company’s consolidated amortization schedule as of September 30, 2013.

Only 3% of the Company’s total debt matures in 2013, and its high liquidity ensures that its cash and cash equivalents cover the payment of obligations maturing over the next 23 months. Considering the stand-by credit facilities, this coverage extends to 33 months.

In keeping with its commitment to maintain healthy liquidity levels, on October 25, Braskem lengthened R$1,015 million of its debt due in 2014/15 (export credit notes) to 2021.

CAPITAL EXPENDITURE:

Maintaining its commitment to making investments with returns above the cost of capital, in the nine months of 2013, Braskem made investments (excluding capitalized interest) of R$1,699 million. Of this amount, 42% (R$716 million) was allocated to the project in Mexico. The deviation from the amount initially planned for the project in 2013 is mainly explained by the anticipation of the disbursements arising from the delivery and assembly of large pieces of equipment on the site. This amount was also affected by exchange variation effects on the translation of dollar-denominated investments to Brazilian real, which is the Company’s functional currency. Braskem also invested R$836 million in maintenance in order to keep its assets operating at high levels of operating efficiency and reliability.

PROJECT PIPELINE:

Consistent with its middle and long term strategy, Braskem focuses on investments that improve the competitiveness and diversification of its feedstock matrix and strengthen its leadership in the Americas and in the biopolymers industry.

BRASKEM’S COMPETITIVE ADVANTAGES:

4   VISIO Program

Braskem continues to make progress in its commitment to develop Brazil’s plastics chain and create value for its Clients. The highlights in the quarter include:

Braskem assisted Mondial, a home appliance manufacturer, in replacing the PP resin used in the jars of some of its blender lines. The suggested solution improved the jar's transparency and helped make the Client more competitive.

Braskem helped Araforros, a leading manufacturer in Brazil of PVC ceiling panels and folding doors, to install a plant in the state of Rio de Janeiro, which was inaugurated in August. Braskem participated in the negotiations that led to tax benefits, while also supplying the raw materials. The effort helped Braskem strengthen its Client's business and to develop the chain.

4   Innovation Pipeline

Polyethylene for the beverage industry: in keeping with its strategy to develop the market, Braskem will expand PE applications for the beverage industry. In September, operations will begin at a plant operated by Companhia Brasileira de Embalagens (CBE) for the production of plastic seals.

OUTLOOK:

The International Monetary Fund (IMF) announced a revision in its forecast for world economic growth to 2.9% for 2013 and 3.6% for 2014. Despite the better performance of more mature economies, emerging economies are expected to grow at more moderate rates, which explains the slower pace of the world economy. China GDP should continue to grow at rates between 7% and 8%, consistent with the government’s measures to ensure more balanced and sustainable growth.

In Brazil, analysts once again revised upwards their forecasts for 2013, and based on the Market Readout published by the Central Bank, GDP growth in the year is estimated at 2.47%. However, the scenario for the last quarter of the year is still uncertain. While sectors like automotive, construction and white goods are expecting stronger demand, other industries that rely more on infrastructure investments are not signaling a recovery in production. This situation should be further exacerbated by the recent appreciation in the Brazilian real, which brings additional challenges for the industry and its competitiveness.

For the petrochemical industry, the near-term outlook calls for international spreads remaining stable at levels in line with recent quarters. The shutdowns scheduled for 4Q13 in the USA and Europe and the continued improvement in the global economy should sustain market fundamentals underlying the balance between petrochemicals supply and demand.

Braskem’s strategy in this context remains centered on strengthening its business and increasing its competitiveness by: (i) intensifying its partnerships with Clients, with a resumption of market share gains in the Brazilian market and segmented sales in the U.S. and European markets; (ii) supporting the development of Brazil’s petrochemical and plastics chain; (iii) pursuing operational efficiency by maintaining high capacity utilization rates and optimizing the production mix; (iv) diversifying its feedstock matrix and improving its competitiveness by advancing construction of the gas-based petrochemical complex in Mexico (Ethylene XXI); and (v) maintaining its cost discipline and financial health.

NOTE:

(i)    On September 30, 2013, the Brazilian real/U.S. dollar exchange rate was R$2.2300/US$1.00.

UPCOMING EVENTS:

4       3Q13 Earnings Conference Call

Portuguese 10:00 a.m. (Brasília) 7:00 a.m. (US EST) 4:00 a.m. (Los Angeles) 12:00 p.m. (London)   Dial-in +55 (11) 2188-0155 Code: Braskem

English 12:00 p.m. (Brasília) 9:00 a.m. (US EST) 6:00 a.m. (Los Angeles) 2:00 p.m. (London)   USA: +1 (866) 890-2584 Other countries: +55 (11) 2188-0155 Code: Braskem

INVESTOR RELATIONS TEAM:

EXHIBITS LIST:

            Braskem, a world-class Brazilian petrochemical company, is the leader in the thermoplastic resins segment in the Americas. With 36 industrial plants, of which 29 are in Brazil, 5 in the United States and 2 in Europe, the Company has annual production capacity of 16 million tons of thermoplastic resins and other petrochemical products.

DISCLAIMER

This press release contains forward-looking statements. These forward-looking statements are not just historical data, but rather reflect the targets and expectations of Braskem’s management. Words such as "anticipate", "wish", "expect", "foresee", "intend", "plan", "predict", "project", "aim" and similar terms, written, seek to identify statements that necessarily involve known and unknown risks. Braskem does not undertake any responsibility for transactions or investment decisions based on the information contained in this document.

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EXHIBIT I

Consolidated Income Statement

(R$ million)

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EXHIBIT II

EBITDA Calculation

(R$ million)

(i)                 Represents accrual and reversal of provisions for the impairment of long-lived assets (investments, property, plant and equipment and intangible assets) that were adjusted to form EBITDA since there is no expectation of their financial realization and if in fact realized they would be duly recorded on the statement of operations.

(ii)                Corresponds to the items current and deferred income and social contribution taxes, financial result, depreciation and amortization and equity income, which are included in profit or loss from discontinued operations.

(iii)                Corresponds to results from equity investments in associated companies and joint ventures.

EXHIBIT III

Consolidated Balance Sheet

 (R$ million)  

* Includes non-derivative liabilities designated for export hedge accounting (Note 20.2.1 of the quarterly Financial Statements).

EXHIBIT IV

Cash Flow

(R$ million)

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EXHIBIT V

Production Volume – Main Products

EXHIBIT VI

Sales Volume - Domestic Market – Main Products

25

EXHIBIT VII

Sales Volume - Export Market – Main Products

EXHIBIT VIII

Consolidated Net Revenue

(R$ million)

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SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.