Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q1 2021 Earnings Presentation
25 slides from Braskem's earnings presentation, May 6, 2021
Slide 1: Earnings Conference Call 1Q21
EARNINGS CONFERENCE CALL 1Q21 MAY 6, 2021 Braskem ©
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: Petrochemical Context in 1Q21
Petrochemical Context in 1Q21 In 1Q21, petrochemical supply was impacted by the severe winter storm in the U.S. Gulf Coast, which led to unplanned production closures affecting resins suppliers. Additionally, demand continued strong Spread PE US—Naphtha ARA* @ Spread PE US— Ethane Mont Belvieu' CS)
Slide 4: 1Q21 Highlights | Braskem Consolidated
1Q21 Highlights | Braskem Consolidated Recurring Operating Result - 1Q21 (US$ million) Profitability improves in 1021, as shown by the higher recurring operating margin in the period @® 1.266 833 287 1Q20 4020 1921 Recurring Operating 10% 24% ex) Margin’ Source: Braskem. Note 1): Based on Recurring
Slide 5: 1Q21 Highlights | Brazil
1Q21 Highlights | Brazil Operational Financial Utilization Rate of Petrochemical Crackers Recurring Operating Result BRIDGE (%) {USS million) Impacted by the pit 81% i 82% stop (rapid scheduled as shutdown) in RS a4 1020 a Ethylene Resin Sales (PE+PP+PVC) (kt ie (eo 883 ue i] |_| | a — oo 1q20 40201
Slide 6: Higher supply of imported feedstock in Brazil
Higher supply of imported feedstock in Brazil <>} Naphtha Purchases - Supplier Location 4) Comments: Diversified feedstock supplier base in Brazil, with + In line with the Company's several suppliers of naphtha imports strategy to diversify its suppliers, the Brazil segment continued to Higher napht
Slide 7: Update on geological event in Alagoas - Financial Impact
Update on geological event in Alagoas - Financial Impact <>} Financial Impact! - Balance of provisions in 1Q21 Disbursement Schedule (RS billion) In 1021, the balance of provisions related to the geological event in Alagoas was around R$8.5 billion... In 1021, Braskem reversed provisions in the amou
Slide 8: Update on geological event in Alagoas - PCF
Update on geological event in Alagoas - PCF! Update of PCF" as of March 31, 2021 Acceptance Index for Proposals Submitted Hl Families Relocated Il Financial Compensation Proposals Submitted 9.213 [ll Payments Made (R$ million) es 409,5 Dec/20 Mar/21 Dec/20 Mar/21 99.7% 99.6% In 1Q21, Braskem continu
Slide 9: 1Q21 Highlights | USA & Europe
1Q21 Highlights | USA & Europe Operational Utilization Rate of PP Plants Financial Recurring Operating Result BRIDGE ) SPI 1020 4qzo* 1021 [EPP USA IPP Europe * Utilzation Rate of 4020 inthe United States does not consider Detta PP Sales? ° = 499 ats 543 37 395 1020 4Q20 1021 [EPP USA [PP Europe Sou
Slide 10: Startup of new global export hub facility in Charleston
First interna Startup of new global export hub facility in Charleston, South Carolina The new hub offers packaging, warehousing and export shipment services to support Braskem’s six PP plants in the United States The facility has the capacity to support export shipments of up to 204 kt annually to B
Slide 11: 1Q21 Highlights | Mexico
1Q21 Highlights | Mexico Operational Utilization Rate of PE Plants ancial Recurring Operating Result BRIDGE B6% Ho ea! In Mar/21, _ 1Q21 mee PE Sales (xt) Reduction due to lower production ‘and inventory a ire - 4q20 1021 re Source: Braskem. Note 1) Fc: Fited Coss. Nota (2) SGMA: Sling, General 8. A
Slide 12: Expansion of ethane imports from U.S. to Braskem Idesa
Expansion of ethane imports from U.S. to Braskem Idesa U.S. Ethane Imports from USA (Fast Track Solution) (000 barrels per day) Comments: * In 1021, to complement the supply bee si bennarunaues of ethane by Pemex, Braskem Idesa Perit amchieee aided imported a daily average of 13,100 Fok aoa Un Cnely
Slide 13: Free Cash Flow Generation
Free Cash Flow Generation Free Cash Flow Generation (R$ million) - 1Q21 Consistent operating cash generation, in line with the strategy of efficient capital allocation and financial health 6.943 Impact from higher prices for resins and main chemicals in the international market on accounts receivabl
Slide 14: Debt Profile
Debt Profile Debt Profile (US$ million) 03/31/2021" Strong liquidity position, with most debt maturing in the long term Prepayment of perpetual a i bond (US$500 million) in es faa lsc os 149% 125 oe? gn 3% 3% 3% st eae?> S86]°” loa amer!? maar? Cosh at 2021 «= 2022-2023. 2028 ©2025 2026/2027 2028/20
Slide 15: Corporate Leverage
Corporate Leverage Net Debt/Recurring Operating Result (USS)' Comments: Significant reduction in in'ihewiiitl F < aemetisecona n line with its continuous commitment to GD financial health and with the objective to be reassigned as an investment grade company, Braskem continued to reduce its corporat
Slide 16: ESG: Startup of the EDF Renewables wind complex
ESG: Startup of the EDF Renewables wind complex, which will supply renewable energy to Braskem Renewable Energy Purchase * Power supply secured by a 20-year power purchase agreement signed in 2018 * The partnership is estimated to result in the avoidance of 280,000 tons of CO2 emissions over the lif
Slide 17: ESG: Braskem and Trafigura first transport of naphtha with carbon offset
ESG: Braskem and Trafigura perform the world's first transport of naphtha with carbon offset? Offsetting of emissions in the value chain + Trafigura is a supplier of naphtha imports to Braskem's petrochemical complexes in Brazil + In collaboration with Braskem, the first naphtha shipment was made wi
Slide 18: ESG: International certification for chemical recycling
ESG: International certification to produce resins and chemicals from chemical recycling ISCC' Plus and Chemical Recycling * First Brazilian company to receive ISCC Plus certification for the use of circular feedstocks, such as pyrolysis oil, which is used to produce polymers * Pyrolysis oil is the
Slide 19: ESG: R$15 million in 2021 to combat hunger
ESG: Braskem allocates R$15 million in 2021 to combat hunger and distributes 48,000 food staple boxes in Brasil Combating the social crisis caused by COVID + The COVID pandemic has affected people's lives, especially with regard to basic survival needs + Braskem launched the distribution of 48,000 f
Slide 20: ESG: Authorized Economic Operator certification
ESG: Certification by the Federal Revenue Service as an Authorized Economic Operator (OEA) in the Compliance category Authorized Economic Operator + International recognition for adopting management processes that: > minimize the risk events existing in import operations > voluntarily comply with th
Slide 21: Petrochemical Scenario 2Q21 vs. 1Q21 - PE and PVC
Petrochemical Scenario 2Q21 vs. 1Q21 - PE and PVC Spread PE US — Naphtha ARA' Spread PE US— Ethane Mont Belvieu' Spread PVC - Spread Par’ $/ton @ so QE) shor © 1.759 367 1.059, 904 703 - lors — ae Ee 1.796 1.583 acts: 1.088. 915 704 Ls 1.609 932 753 1187 563 623 q4a1—— 162 — 156 ___»-——¢ 435 496 202
Slide 22: Petrochemical Scenario 2Q21 vs. 1Q21 - PP
Petrochemical Scenario 2Q21 vs. 1Q21 - PP Spread PP US ~ Propylene US' Spread PP Europe — Propylene Europe’ Spread PP Asia — Naphtha ARA’ $/ton & sion @ so (5) 1302 4.950 1.081 206 399 617 6390757 S| we s70-— ap 889 758 688 2020-3020, 4Q20. 1021 2@21e = 2Q20 3Q20. 4020. :1Q21_ 2Q2ie = 2020. 3Q20 4Q2
Slide 23: Braskem Outlook | 2Q21 vs. 1Q21
Braskem Outlook | 2Q21 vs. 1Q21 Utilization Rate’ Sales Volume’ Petrochemical Spreads? Increase Brazil Ethylene production in line, with higher production in RS after the pitstop in 1021 and the schedule shutdown at the ‘SP complex in April/May Total resin sales in line and continuity of the strateg
Slide 24: We remain focused on main objectives for 2021
We remain focused on 6 main objectives for 2021 GEOLOGICAL PHENOMENON = Co \e advances related to the i IN ALAGOAS Continue the advances related to the geological phenomenon in Alagoas = Expand the ethane import operation and negotiate definitive agreement with PEMEX CAPITAL ALLOCATION / = Ensure th
Slide 25: Form 6-K forward-looking statements
This report on Form 6-K may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are statements that are not historical facts, and are based on our management’s current view and estimates of future economic and other circumst