Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q1 2022 Earnings Presentation
23 slides from Braskem's earnings presentation, May 12, 2022
Slide 1: Earnings Conference Call 1Q22
Braskem Polyethylene (PE) Plant in Cubatão, São Paulo - Brazil EARNINGS CONFERENCE CALL 1Q22 M AY 1 2 , 2 0 2 2
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements. These forward-looking statements represent not solely historical data, but also reflect the goals and expectations of Braskem’s management. The terms “anticipate,” “believe,” “expect,” “foresee,” “intend,” “plan,” “est
Slide 3: Return for Shareholders: Dividend distribution of R$7.35 billion for fiscal year 2021
Return for Shareholders: Dividend distribution of R$7.35 billion for fiscal year 2021 Dividend Distribution¹ - 2015-2021 Comments: (R$ billion) Corresponding to 77.5% Dividend Distribution (R$ billion) of adjusted net income for the year • Braskem remains committed to returning value to shareholders
Slide 4: 1Q22 Highlights | Braskem Consolidated (1/2)
1Q22 Highlights | Braskem Consolidated (1/2) Net Income - 1Q22 Comments: (R$ million) • In 1Q22, the Company recorded a Net Income of +56% 632% R$3.9 billion, representing R$4.88 per common 3,884 share and class “A” preferred share¹ • Additionally, the Company’s net margin in the period was 15% 2,49
Slide 5: 1Q22 Highlights | Braskem Consolidated (2/2)
1Q22 Highlights | Braskem Consolidated (2/2) Recurring EBITDA - 1Q22 Comments: (US$ million) • In 1Q22, the Company’s Recurring EBITDA was -27% -19% US$920 million, down 19% on 4Q21, mainly due 1,266 to: 1,135 i. the expected normalization of international spreads for main chemicals and resins in 92
Slide 6: 1Q22 Highlights | Brazil
1Q22 Highlights | Brazil Operational Financial Utilization Rate of Petrochemical Crackers Recurring EBITDA Bridge (%) (US$ million) +3 p.p. +1 p.p. Increase vs. 1Q21 82% 85% 86% due to pit stop¹ in RS in 1Q21 -185 -35 1Q21 4Q21 1Q22 Ethylene -280 761 217 Resin Sales (PE+PP+PVC) (kt) -16% 477 +2% Str
Slide 7: Geological event in Alagoas (1/2) - Provisions
Geological event in Alagoas (1/2) - Provisions Financial Impact - Balance of provisions in 1Q22 Disbursement Schedule (R$ billion) (R$ billion) In 1Q22, the balance of provisions related to the geological event in Alagoas ...with 56% recorded under Current Liabilities and was around R$7.2² billion..
Slide 8: Geological event in Alagoas (2/2) – Progress on Work Fronts
Geological event in Alagoas (2/2) – Progress on Work Fronts Relocation & Compensation – PCF¹ Closing & Monitoring of Wells Socio Urbanistic Measures (Status as of April 30, 2022) (Status as of April 30, 2022) Financial Compensation Proposals Submitted (i) Urban Mobility: Sand Acceptance Index for Pr
Slide 9: 1Q22 Highlights | USA and Europe
1Q22 Highlights | USA and Europe Operational Financial Utilization Rate of PP Plants Recurring EBITDA Bridge (%) +5 p.p. (US$ million) In USA, increased due +15 p.p. to normalization of -14 operations after 33 -5 78% 93% 88% 89% scheduled 73% 84% maintenance shutdown 1Q21 4Q21 1Q22 US PP Europe PP P
Slide 10: 1Q22 Highlights | Mexico
1Q22 Highlights | Mexico Operational Financial Utilization Rate of PE Plants Recurring EBITDA Bridge (%) (US$ million) -1 p.p. 81% 80% 58% 30 -49 -6 1Q21 4Q21 1Q22 PE PE sales 160 (kt) +15% 136 219 Increase due to stable 190 production at healthy levels and inventory 134 consumption Recurring Volume
Slide 11: Recurring cash generation was R$467 million, excluding Alagoas disbursements
Recurring cash generation was R$467 million, excluding disbursements related to the geological event in Alagoas Cash Generation (R$ million) – 1Q22 4,845 Working capital consumption was due to: (i) higher sales volume in Accounts Receivable (ii) higher sales volume of finished goods, explained by -2
Slide 12: Maintenance of very long debt maturity profile
Maintenance of very long debt maturity profile Debt Profile (US$ million) Mar/31, 2022(1) Debt Indicators Strong liquidity position, with most liabilities maturing • Sufficient liquidity to cover liabilities coming in long term (52% after 2030) due in next 69 months¹ 2,834 • Average debt term of 14
Slide 13: Solid credit metrics and a low corporate leverage ratio
Braskem continued to present solid credit metrics and a low corporate leverage ratio in the quarter Adjusted Net Debt/Recurring EBITDA (LTM)¹ (US$ million) Corporate Leverage (Ex-Braskem Idesa) Adjusted Net Debt (ex-Braskem Idesa) Recurring EBITDA (LTM³) 1.80x 1.10x 0.83x 0.94x 1.00x 4,936 4,522 4,8
Slide 14: ESG: New Investment Policy considers potential impact of CO2 emissions
ESG: Braskem's new Investment Policy considers the potential impact associated with CO2 emissions Braskem's Investment Cycle occurs annually and follows the process below: Definition of annual Strategic Business and Multi-year Investment portfolio dedicated to Performance Corporate Areas Execution P
Slide 15: ESG: long-term renewable energy purchase agreements
ESG: long-term renewable energy purchase agreements will support Braskem to reach its GHG¹ reduction targets by 2030 We already are receiving energy under these agreements 2021 2022 2022 - 2024 2024 The agreements will enable Braskem to avoid emissions of PPA - Folha Larga PPA - Serra do Mel Braskem
Slide 16: ESG: Cooperation agreement with Sojitz to produce bio-MEG and bio-MPG
ESG: Execution of cooperation agreement with Sojitz to produce and market bio-MEG and bio-MPG Key information on JV • To set up a joint venture (“JV”) to produce and market bio-MEG 1 Project (monoethylene glycol) and bio-MPG (monopropylene glycol), conditioned on the conclusion of technology develop
Slide 17: PE-Naphtha ARA spread expectations for 2022 above pre-war levels
The expectation for PE-Naphtha ARA spreads for 2022 are already at levels above pre-war Russia and Ukraine Spread US PE – Nafta ARA¹ 2022e - Weekly Projections Since April, there were successive increases in expectations for the ($/ton) Last update from year, reaching a level above the After the sta
Slide 18: Petrochemical Scenario 2022
Petrochemical Scenario 2022 US PE – ARA Naphtha Spread¹ US PE – US Ethane Spread¹ US PP – US Propylene Spread¹ ($/ton) ($/ton) ($/ton) 1,708 1,630 1,556 1,520 1,764 1,581 1,554 2,833 2,565 2,737 2,627 2,440 1,451 1,407 1,507 1,052 1,052 1,552 884 956 918 884 1,587 1,396 1,532 1,451 1,360 466 635 897
Slide 19: Braskem Outlook | 2Q22 vs. 1Q22
Braskem Outlook | 2Q22 vs. 1Q22 Brazil United States Europe Mexico Expectation of lower ethylene Expectation of lower PP Expectation of higher production due to scheduled PP production expected to Utilization production due to scheduled production due to higher maintenance shutdown at remain stable
Slide 20: Braskem remains an interesting investment opportunity in the global petrochemical industry
Braskem remains an interesting investment opportunity in the global petrochemical industry Consensus vs. Actual Price on B3 Valuation by Multiple Why invest in Braskem? (BRKM5) (EV/Recurring EBITDA LTM¹) • Global company: with industrial units in Brazil, United States, Mexico and Germany and a globa
Slide 21: Our main goals for 2022
Our main goals for 2022 Strategic Pillars Goals for 2022: Productivity and • Capture value through initiatives related to Transform for Value program, reaching recurring Competitiveness gains of US$302 million/year¹ Sustainability • Intensify actions in recycling, expand renewables and reduce carbon
Slide 22: New IR website Braskem Invest
Lastly, we created new communication channels: New Investor Relations website and Podcast NEW IR WEBSITE BRASKEM INVEST The new website was created to share clearly, reliably and We also created Braskem Invest, a podcast about practically important information such as financial investments to cover
Slide 23: Earnings Conference Call 1Q22 - Investor Relations
EARNINGS CONFERENCE CALL 1Q22 MAY 12, 2022 Investor Relations IR website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Phone: +55 (11) 3576-9531 23