Slide 1: 1Q20 Earnings Conference Call
1Q20 EARNINGS CONFERENCE CALL JUNE 03, 2020
Slide 2: Disclaimer on Forward-Looking Statements
DISCLAIMER ON 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,”
Slide 3: COVID-19
COVID-19 Chemistry and plastics play an important role in the fight against COVID-19 Braskem plays an essential role in this effort HEALTHCARE AND HYGIENE ITEMS PACKAGING
Slide 4: Commitment to Society
Commitment to Society DONATIONS OF COMMUNITY CLIENT HEALTH AND THERMOPLASTIC RESINS SUPPORT SUPPORT SAFETY AND CHEMICALS Partnership with Minimal teams 1,200 families that Credit line of clients to produce: work with recycling R$1 billion working in our factories, received food support live-in at so
Slide 5: Business Impact
Business Impact BRAZIL RELIABILITY Reduction in ethylene production to 65% of the total capacity The reduction by ~50% in the number of industrial team members and contractors allows us to keep teams safe total capacity: while maintaining the reliability of our operations. 3.6 million tons/year SALE
Slide 6: Financial Robustness
Financial Robustness LIQUIDITY & CAPITAL RESOURCES CASH DISCIPLINE Sufficient liquidity position to cover the payment of all Disbursement of Revolving Credit Facility liabilities coming due in the next 55 months (1) of US$1 billion Reduction of administrative expenses by approximately 10% Reduction
Slide 7: 1Q20 Highlights
1Q20 Highlights OPERATIONAL RESULTS CASH FLOW GOOD OPERATING FIXED COSTS REDUCTION PIS/COFINS MONETIZATION PERFORMANCE ~54% below 4Q19 Positive cash impact of Utilization rate in Brazil R$344 million in 1Q20 81% 3 p.p. above 4Q19 Total credit yet to be EBITDA OF US$ 294 MILLION monetized of R$2.0 bi
Slide 8: 1Q20 Highlights | Brazil
1Q20 Highlights |Brazil EBITDA BRASKEM’S RESIN SALES (US$ million) PE+PP+PVC by destination market (kt) -21% 1Q19 878 356 1,234 -5% 294 4Q19 822 307 1,129 +214% +4% 233 1Q20 882 289 1,171 Brazilian Market Exports FIXED COSTS¹ SG&A + Other operating income/expenses (US$ million) 74 -55% -76% 315 1Q19
Slide 9: 1Q20 Highlights | US and Europe
1Q20 Highlights |US and Europe EBITDA BRASKEM’S PP SALES (US$ million) by destination market (kt) -21% 1Q19 346 130 476 +5% 72 +33% 4Q19 356 121 476 62 +5% 1Q20 368 131 499 PP US PP Europe 47 UTILIZATION RATE by region (%) 91 +4p.p. 1Q19 90 -2 p.p. 1Q19 4Q19 1Q20 84 +11 p.p. 4Q19 EBITDA 87 10% 8% 9%
Slide 10: 1Q20 Highlights | Mexico
1Q20 Highlights |Mexico EBITDA BRASKEM’S PE SALES (US$ million) by destination market (kt) -22% 1Q19 119 45 13 10 21 209 +2% 100 4Q19 118 16 20 25 27 207 +2% +3% 77 79 1Q20 109 6 28 31 38 213 Mexican Market Asia Europe USA Americas ex USA UTILIZATION RATE (%) 1Q19 79 +7 p.p. 1Q20 4Q20 1Q20 4Q19 82 +
Slide 11: 1Q20 Highlights | Braskem Consolidated
1Q20 Highlights |Braskem Consolidated EBITDA BRASKEM’S RESIN SALES (US$ million) by origin of production (kt) -34% 1Q19 1,234 346 130 209 1,918 446 -2% 4Q19 1,129 356 121 207 1,812 +4% +22% 1Q20 1,171 368 131 213 1,883 294 Brazil US Europe Mexico 241 FIXED COSTS¹ SG&A + Other operating income/expens
Slide 12: Petrochemical Spreads 2020
Petrochemical Spreads 2020 External consulting firms forecast: Jan/20 report vs May/20 report Brazil Spreads US & Europe Spreads Mexico Spreads PE, PP, PVC and Main Chemicals PP US and PP EU PE Mexico +3% +2% +19% +59% +28% +23% -16% PE PP PVC Main PP US EU PP PE Mexico Chemicals Jan/20 projection J
Slide 13: ESG Highlights: Corporate Governance
ESG Highlights: Corporate Governance MONITORSHIP CONCLUSION CERTIFIED BY 2020 MPF, SEC AND DOJ MAIN ACHIEVEMENTS 11k+ 80+ AGU & CGU leniency agreement policies and 3rd monitors’ assessment documents 2019 Implementation of 3rd package of monitor’s reviewed normative documentation recommendations revi
Slide 14: Priorities for 2Q20
Priorities for 2Q20 PRODUCTIVITY ▪ Ensure reliability of the industrial plants within the COVID-19 scenario AND COMPETITIVENESS ▪ Focus on the negotiation of feedstock contracts with Petrobras FEEDSTOCK AND SUPPLIER ▪ Ramp up the import solution for complementary ethane in Mexico DIVERSIFICATION GEO
Slide 15: Thanks to the heroes in our industrial plants
THESE ARE SOME OF THE HEROES WHO LIVED IN OUR INDUSTRIAL PLANTS TO GUARANTEE THE MATERIALS THAT SOCIETY NEEDS TO GET THROUGH THIS CRITICAL MOMENT. THANKS FOR YOUR EFFORTS!