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Investor Presentaiton

2016 Braskem | Annual Report Communication: transparency in Relations with the Market and Internal Audience G4-58 As part of its legal commitments, Braskem regularly sends a set of information to the Brazilian Securities and Exchange Commission (CVM) and the São Paulo Stock Exchange (BM&FBOVESPA), and the New York Stock Exchange (NYSE), such as Standardized Financial Statements, Announcements, Material Facts, and others. In addition, members of the Board of Directors and the Fiscal Committee have an exclusive information channel, which may be accessed on the Braskem portal on the Internet, providing security, transparency, equity, and speed in the process of communicating with Shareholders. For the internal Braskem's audience, communication and channel, View, (intranet), available in Portuguese, English, and Spanish, disseminates Company national regional news, corporate and business information, products, campaigns, internal processes, and acknowledgments. Braskem Global Agreement G4-SO5 In March 2015, as part of the "Operation Lava-Jato" investigation, allegations made about defendants in criminal proceedings were made public, according to which certain persons no longer linked to Braskem were involved in undue payments to obtain benefits through raw material contracts with Petrobras. In view of these facts, Braskem immediately approved the hiring of law firms with ample and proven experience in similar cases in Brazil and the United States in order to conduct an internal and independent investigation of said allegations, which was performed under the supervision of and in collaboration with public authorities of the Department of Justice and the Securities and Exchange Commission of the United States (DoJ and SEC, respectively). By mid-July 2016, the internal investigation had not obtained evidence proving the existence of illicit facts at Braskem. At the end of July 2016, Braskem received new information about deviations, revealed in the collaborations of former Braskem administrators in the context of Odebrecht's cooperation with the authorities. Based on this information, the internal investigation confirmed the existence of payments made by the Company between 2006 and 2014 to three companies located abroad, as commercial intermediation services, and it was not possible to prove the effective services provided by such companies. As Braskem's former administrators explained in their collaboration process, these companies only transferred resources to a number of other companies, which in the end made illicit payments to Braskem, involving issues such as the naphtha contract signed with Petrobras in 2009 and terminated in 2014, as well as changes in the federal and state tax legislation, to obtain tax incentives and monetization of tax credits that were already within the rights of Braskem. After confirming the illicit acts, on October 3, 2016, Braskem began discussions with the DoJ and the SEC to formalize an agreement resolving all the illicit acts identified and to seek a simultaneous agreement with the Brazilian authorities, and later on, with the Swiss authorities. As a result of these negotiations, on December 14, 2016, Braskem entered into a Leniency Agreement with the Federal Public Ministry (MPF). Shortly thereafter, on December 21, 2016, Braskem finalized the formal agreements with the DoJ and the SEC, as well as an agreement to terminate investigations by the Swiss Attorney General (in conjunction with the agreement with the MPF, Global Agreement). The Global Agreement includes all the facts ascertained up to the date of its execution involving Braskem under Operation Lava-Jato. Under the terms of the Global Agreement, Braskem will pay the above-mentioned authorities, in Brazil and abroad, the approximate total value of US$ 957 million, equivalent to nearly BRL 3.1 billion, which is approximately US$ 95 million (nearly BRL 316 million) due to the DoJ, US$ 65 million (nearly BRL 216 million) due to the SEC, close to CHF 95 million (approximately BRL 307 million) to the Swiss Attorney General, and approximately BRL 2.2 billion due to the MPF. Also according to the Global Agreement, Braskem committed to undergo independent monitoring for a term of up to three years by monitors designated by the US and Brazilian authorities, who will verify Company compliance with the obligations assumed in the agreements and evaluate its Compliance Program, with the purpose of reducing the risk of deviations recurring in the Company. 31
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