Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q4 2020 Earnings Presentation
25 slides from Braskem's earnings presentation, Mar 11, 2021
Slide 1: Earnings Conference Call 4Q20 & 2020
GREEN POLYETHYLENE PLANT IN BRAZIL EARNINGS CONFERENCE CALL 4Q20 & 2020 MARCH 11, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements. These forward-looking statements are not solely historical data, but rather reflect the targets and expectations of Braskem’s management. The terms “anticipate,” “believe,” “expect,” “foresee,” “intend,” “plan,” “estim
Slide 3: Main achievements of the Company in 2020
Main achievements of the Company in 2020 GEOLOGICAL PHENOMENON IN FINANCIAL RESULTS ALAGOAS ESG¹ POSITIONING • Consistent net cash generation: ~R$1.3 • Execution of the agreements with the • Achieve carbon neutrality by 2050 billion competent authorities, with the termination of the public-interest
Slide 4: Main measures taken by the Company in response to COVID
Main measures taken by the Company in response to COVID SUPPORT/COOPERATION RELIABILITY NONNEGOTIABLE VALUE VALUE CHAIN OPERATIONS & SALES SAFETY • ~R$10.6 million in donations, • Temporary reduction in capacity • Smaller teams for production, including of hospital materials, utilization rates in Br
Slide 5: 4Q20 & 2020 Highlights | Braskem Consolidated
4Q20 & 2020 Highlights | Braskem Consolidated Recurring Operating Result 4Q20 & 2020 (US$ million) Comments: • In 4Q20, Recurring Operating Result of US$833 STRONG OPERATING RESULT IN SECOND HALF OF THE million, up 22% on 3Q20, explained mainly by: YEAR, WITH RECURRING OPERATING RESULT CLOSING 2020
Slide 6: 4Q20 & 2020 Highlights | Brazil
4Q20 & 2020 Highlights | Brazil Operational Financial Utilization Rate Recurring Operating Result BRIDGE (%) (US$ million) -2 p.p. -4 p.p. 87% 85% 85% 81% -54 78% 225 5 -24 680 529 4Q19 3Q20 4Q20 2019 2020 Recurring FX Volume Contribution FC¹ + SG&A² Recurring Ethylene Operating Margin + Others Oper
Slide 7: Update on geological event in Alagoas - ANM Official Letter
Update on geological event in Alagoas - ANM Official Letter¹ Material Fact Notice to the Market Material Fact (11/26/2020) (1/5/2021) (2/17/2021) ANM¹ Official Letter Temporary suspension of effects of ANM¹ has accepted the Request for ANM¹ Official Letter Reconsideration • Braskem became aware of a
Slide 8: Update on geological event in Alagoas - Financial Impact
Update on geological event in Alagoas - Financial Impact Disbursement Schedule¹ Potential non-operating / recurring events - 2021 (R$ billion) (R$ billion) ~R$1.0 billion General liability insurance 4,83 already being discussed with 4,35 provisioned to be 4,35 insurance companies, in the For leverag
Slide 9: Update on Vinyls operation in Alagoas
Update on Vinyls operation in Alagoas Return of chlor-alkali New Integrated Business Model production in Alagoas (2021) • Braskem announced the restarting of chlor-alkali and dichloroethane production at its unit in the Pontal da Barra district of Maceió, Alagoas, which had been shut down since May
Slide 10: 4Q20 & 2020 Highlights | USA & Europe
4Q20 & 2020 Highlights | USA & Europe Operational Financial Utilization Rate Recurring Operating Result BRIDGE (%) -23 p.p. (US$ million) -15 p.p. +1 p.p. 99% 87% 91% 92% 46 -33 84% 87% 84% 79% 79% -29 64% 133 117 4Q19 3Q20 4Q20 2019 2020 Recurring Volume Contribution FC¹ + SG&A² Recurring PP USA PP
Slide 11: 4Q20 & 2020 Highlights | Mexico
4Q20 & 2020 Highlights | Mexico Operational Financial Utilization Rate 10% of the Recurring Operating Result BRIDGE³ utilization rate in the (%) year came from the (US$ million) -37 p.p. Fast Track solution -2 p.p. -19 19 -16 82% 84% 76% 74% 79 48% 63 Recurring Volume Contribution FC¹ + SG&A² Recurr
Slide 12: Update on Braskem Idesa operation
Update on Braskem Idesa operation (12/2/2020) (1/7/2021) (3/1/2021) Unilateral suspension of natural gas Partial return of Braskem Idesa Braskem Idesa signed documents with transportation operations Pemex and Cenagas • Braskem Idesa was notified by Cenagas¹, the • Braskem announced the partial retur
Slide 13: Free Cash Flow Generation
Free Cash Flow Generation Free Cash Flow Generation (R$ million) - 2020 Comments: • In 2020, the Company registered net SIMILAR TO PRIOR YEARS, POSITIVE FREE CASH cash generation of R$1,276 million, FLOW GENERATION IN 2020 mainly due to: 10,975 o strong operating result; -3,983 o monetization of PIS
Slide 14: Debt Profile
Debt Profile Debt Profile (US$ million) 12/31/2020¹ Debt Indicators APPROXIMATELY 50% OF DEBT COMES DUE AFTER 2030 • Sufficient liquidity to cover liabilities 50% coming due in next 84 months 3.940 12 • Average debt term of ~19 years 1.000 2.940 • Weighted average cost of debt was FX 909 variation +
Slide 15: Corporate Leverage & Deleveraging Plan
Corporate Leverage & Deleveraging Plan Net Debt / Recurring Operating Result (US$)¹ Deleveraging Plan: Sharp reduction since 2Q20, from a ratio • In 2020, Braskem implemented measures to reduce its of 7.11x to 2.94x corporate leverage to be reassigned as an investment -4,17 grade company 7,11 5,84 •
Slide 16: ESG: New agreement to buy renewable energy from Casa dos Ventos
ESG: New agreement to buy renewable energy from Casa dos Ventos New wind power supply agreement • The agreement contributes to the feasibility of the construction of a new wind farm by Casa dos Ventos in Rio Grande do Norte state, which will ensure the supply of energy to Braskem for 20 years • In a
Slide 17: ESG: Expansion of Green Ethylene production capacity at Triunfo, RS
ESG: Expansion of Green Ethylene production capacity at Triunfo, RS Expansion of Record sales biopolymer business % Utilization Rate +53% Green PE Sales (kt) • Braskem will launch a project at Triunfo PetChem 161 170 120 134 133 Complex in Rio Grande do Sul, to expand its green 98 111 73 80 ethylene
Slide 18: ESG: Production of renewable bio-MEG from sugar
ESG: Production of renewable bio-MEG from sugar Cooperation between Braskem and Haldor Topsoe • Braskem and Danish-based Haldor Topsoe announced in late 2020 the first production of biobased monoethylene glycol (MEG) on a demonstration scale • The unit started up in 2019 to demonstrate the main desi
Slide 19: ESG: Studies for the production of plastic from CO2 capture
ESG: Studies for the production of plastic from the capture and use of CO2 Partnership between Braskem and the Example inspired by University of Illinois, Chicago, USA mechanisms existing in nature, where a leaf and an artificial • Braskem joined forces with the University of Illinois (UIC), photosy
Slide 20: Petrochemical Scenario 2021 vs. 2020 - PE and PVC
Petrochemical Scenario 2021 vs. 2020 - PE and PVC Spread PE USA –Naphtha ARA¹ Spread PE USA – Ethane Mont Belvieu¹ Spread PVC – Spread Par¹ $/ton $/ton $/ton 1.335 1.360 1.202 1.191 1.185 1.221 1.155 860 860 868 870 893 912 862 853 602 622 639 485 505 529 476 531 355 1.001 1.154 328 977 717 806 708
Slide 21: Petrochemical Scenario 2021 vs. 2020 - PP
Petrochemical Scenario 2021 vs. 2020 - PP Spread PP USA – Propylene USA¹ Spread PP Europe – Propylene Europe¹ Spread PP Asia – Naphtha ARA¹ $/ton $/ton $/ton 2.244 1.852 1.571 1.489 1.534 1.596 1.386 1.447 1.347 1.324 1.220 1.189 1.164 1.091 1.194 986 1.170 1.108 1.049 946 1.025 925 820 734 827 602
Slide 22: Braskem Outlook | 1Q21 vs. 4Q20
Braskem Outlook | 1Q21 vs. 4Q20 Brazil United States Europe Mexico PE production similar, with Ethylene production should be Decline in PP production due to partial restarting of operations similar, despite a pit-stop at the Utilization the impacts from severe winter Increase in PP production after
Slide 23: Braskem Outlook | 2021 vs. 2020
Braskem Outlook | 2021 vs. 2020 Considerations on Operating Result 2021 vs. 2020 Considerations on Cash Generation in 2021 Demand Sales Spreads¹ SG&A² Recurring Regions Petrochemical scenario could (kta) (kta) (US$/t) (US$) (=) Operating Result positively influence operating result GDP/Demand Strate
Slide 24: Main objectives of the Company for 2021
Main objectives of the Company for 2021 GEOLOGICAL PHENOMENON 1 Continue with the advances related to the geological phenomenon in Alagoas IN ALAGOAS BRASKEM 2 Find constructive ways to solve the ethane shortage in Mexico IDESA CAPITAL ALLOCATION / Ensure the Company's continued financial heal
Slide 25: Thank you!
Thank you!