Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — FY2021 Earnings Presentation
27 slides from Braskem's earnings presentation, Mar 17, 2022
Slide 1: Braskem's new mechanical recycling line, in partnership with Valoren
Braskem's new mechanical recycling line, in partnership with Valoren
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: Main highlights of the Company in 2021
Main highlights of the Company in 2021 ( Hl) Financial Highlights @ ESG Highlights i @D Einancial Results: D Financial Results: + Record annual recurring Operating Result (US$S.6 billion) and net cash generation (R$10.7 billion) teturn for Shareholders: + BRKMS as the 3rd largest TSR" in U.S. dollar
Slide 4: 4Q21 & 2021 Highlights | Braskem Consolidated (1/2)
4Q21 & 2021 Highlights | Braskem Consolidated (1/2) Recurring Operating Result - 4Q21 & 2021 (US$ million) Comments: + In 4Q21, recurring Operating Result was US$1.1 Higher profitability in 2021, as shown by period's ion, down 23% on 3Q21, mainly due to: operating margin i. lower international sprea
Slide 5: 4Q21 & 2021 Highlights | Braskem Consolidated (2/2)
4Q21 & 2021 Highlights | Braskem Consolidated (2/2) Net Profit - 4Q21 & 2021 (R$ million) Positive net profit in 2021, after net loss registered in 2020 z Ga) 846 — ~6,692 2020 11% >) 2021 Net Margin’ source: Brashem, Note ‘common share o Cass preferred share an of 850.606032140100 per ciass"B" pref
Slide 6: Highlights 4Q21 & 2021 | Brazil
Highlights 4Q21 & 2021 | Brazil Operational (%) Utilization Rate of Petrochemical Crackers Higher feedstock availabilty in RI (eee | eee 85% senators 81% 81% inthe Brazilian LL “ 4c20 3021 Qt 2020-2024 WiEthylene Resin Sales (PE+PP+PVC) ) 2 Higher exports de to higher 1,002 area, BOR 494 4a20 3021 a
Slide 7: Update on Geological Event in Alagoas (1/2)
Update on Geological Event in Alagoas (1/2) Financial Impact! — Balance of Provisions in 4Q21 Disbursement Schedule (R$ billion} In 4Q21, the balance of provisions related to the geological event in Alagoas was around R$7.7? billio Al 11.8 (R$ billion} of which some 57% was under Current Lial and 43
Slide 8: Update on Geological Event in Alagoas (2/2)
Update on Geological Event in Alagoas (2/2) <> Status on Update of PCF! as of February 28, 2022 Feb/28/22 ‘Approximately 97% | ~*~ Aeeeptance index for Proposals Submitted of properties Hi Financial Compensation Proposals Submitted [il Payments Made (R$ million)* Hil Properties Relocated 99.7% 99.6%
Slide 9: Highlights 4Q21 & 2021 | USA & Europe
Operational Utilization Rate of PP Plants Highlights 4Q21 & 2021 | USA & Europe “ Gon Gass a 94% “a grog 28% 4020 i 4q21 7. [lus pp ill europe PP 8 Sie g PP Sales* @ <> 2 1,650 ais BA sua 118 137 128 502 558 4020 "3021 4a21 «2020 2021 Hus PP Bil Europe pp Source: erase, Note (1: FC: Fike Costs. Note
Slide 10: Highlights 4Q21 & 2021 | Mexico
Highlights 4Q21 & 2021 | Mexico Operational Utilization Rate of PE Plants Financial Recurring Operating Result BRIDGE (4) = Higher feedstock 74% ime supply (PEMEX iki ui a ff i — (i a a 3021 aq2t 20202021 PE sales (kt) 20) 183 130 igner 845 159 allt of ll UW ~ | | 4q20 3021-42 20202021 me ‘Source: s
Slide 11: Higher Feedstock Supply (ethane) to Braskem Idesa in 4Q21
Higher Feedstock Supply (ethane) to Braskem Idesa in 4Q21, for 2022 Ethane Supply — PEMEX vs. Fast Track (Thousand barrels per day — kbpd) Mi Fast Track [lll PEMEX Braskem Idese could reach around 100% of its feedstock needs (PEMEX + Fast Track) 1 ' i ' i 515 i 43.2 | Fast Track 39.8 Bz0 | Expansion
Slide 12: Ethane Import Terminal, Braskem Idesa FID approved in Dec/21
Regarding the Ethane Import Terminal, Braskem Idesa had the FID' approved in Dec/21 > Advances * Constitution of the subsidiary: Terminal Quimica Puerto México * CAPEX of US$400 million + FID! approved by Braskem Idesa shareholders + Licenses and permits on schedule * Detailed engineering 45% comple
Slide 13: Historic annual record of operating cash generation in 2021
Considering the consolidated result, Braskem reported a historic annual record of operating cash generation in 2021 Free Cash Generation - 4Q21 Free Cash Generation - 2021 (R$ million) FCF Yield! 4Q21: 24% © (RSmillion) CR 10,705 6,317 oe 3,104 a 1276 Recurring Working Geological CAPEX InterestPaid
Slide 14: Efficient capital allocation with focus on creating value and returns
Braskem remains committed to efficient capital allocation with focus on creating value and returns for shareholders Gross Debt Reduction Dividend Distributions + Significant reduction in Gross Debt * Remuneration of shareholders + Realization of (i) ope! level’ (US$1.8 billion) with the through (i)
Slide 15: Better return metrics than its international peers
Braskem has been showing better return metrics than its international peers Return for Shareholders Free Cash Flow Yield Dividend Yield (Total shareholder Return in US$ - 2021) (FCF Yield! in USS - 2021) (Dividend Yielo? in USS - 2021) 157% 24% 21% 15% 14% 13% 11% a 8% 5% aM 4% |_| | | om om “12% “B
Slide 16: Maintenance of very long debt maturity profile
Maintenance of very long debt maturity profile Debt Profile (US$ million) Dec/31/21" . Debt Indicators Strong liquidity position, with most liabilities maturing * Sufficient liquidity to cover liabilities coming in long term (54% after 2030) due in next 72 months + Average debt term of around 15 yea
Slide 17: Solid credit metrics and low corporate leverage ratio
Braskem continued to present solid credit metrics and low corporate leverage ratio, even after the distribution of anticipated dividends of RS 6 billion Adjusted Net Debt/Recurring Operating Result’ (US$ million) —®— Corporate Leverage (Ex-Braskem Idesa) Hl Adjusted Net Debt (ex-Braskem Idesa) [lll
Slide 18: Investment grade after rating upgrade by Fitch
Braskem was once again considered an investment grade company with the upgrade of its rating by the risk rating agency Fitch Braskem's risk level on global scale Comments: (Agencies! Rating Scales) + In Sep/21, S&P Global Ratings (S&P) upgraded Braskem’s risk rating on the global scale to BBB-, with
Slide 19: ESG: Growing renewables business, 1 million tons Green PE by 2030
ESG: Braskem continues to grow its renewables business and is committed to reaching 1 million tons of Green PE production capacity by 2030 Green PE Sales (I’m green™ bio-based) and ETBE' Net Revenue of Green PE and ETBE praceressoers (US$ million) (kt) Wl creen Pe Micrer Braskem’s targets to reach 1
Slide 20: ESG: Capital contribution in Circular Economy projects in Brazil
ESG: Braskem is contributing capital (R$130 million) in projects related to Circular Economy in Brazil Ga) (2) Cs) Circular Packaging : : - patna mi, Mechanical Recycling Advanced Recycling Technological Development and construction of the first advanced Construction of mechanical recyclingline recy
Slide 21: ESG: Steam purchase agreement from biomass with Veolia Brasil
ESG: In renewable energy, Braskem entered into purchase agreement for steam produced from biomass with Veolia Brasil Main information on partnership with Veolia Brasil’ r) * Purchase agreement for steam produced from biomass in Alagoas Braskem } @veoua * RS400 million (Veolia: construction of an ind
Slide 22: In 2022, the Company expects to invest US$ 1.2 billion
In 2022, the Company expects to invest US$ 1.2 billion Company Investments (Consolidated) (US$ Million) Strategic [I Operational Lower CAPEX compared to ‘of projects and (i) depreciation of the real against the dollar ane 236 798 & } 97 691 63 993 701 ep 2021e 2021 2022e The investments by Macro-Obj
Slide 23: Braskem Outlook | 1Q22 vs. 4Q21
Braskem Outlook | 1Q22 vs. 4Q21 & Brazil United States Europe PP operations expected to Expectation of higher PP Expectation of increase in Prpectation of maining normalize after scheduled production due to restarting of production, with PEMEX ‘ethylene production at levels similar to the fourth qua
Slide 24: An interesting investment opportunity in global petrochemical industry
Braskem remains an interesting investment opportunity in global petrochemical industry Valuation by Multiple Indicators Braskem vs. Peers Consensus vs. Actual Price on B3 (Ew/Recurring Operating Result LTM") (Profitability and Credit KPIs - 2021) (BRKMS) [Us Peers Average? [lj Braskem Hil craskem [U
Slide 25: BRKM5 increased trading liquidity and weighting in Brazil's stock market
Braskem stock (BRKMS5) increased trading liquidity and weighting in Brazil's stock market BRKMS is improving its position in B3 Tradability Index (IN), which is calculated based on liquidity indicators With the improvement in the IN, BRKMS was included again in IBRX-50, index tracking performance of
Slide 26: Strategy focused on renewables, recycling and productivity improvement
Lastly, we will continue to focus on implementing our strategy focused on renewables, recycling and productivity improvement OUR MAIN GROWTH AVENUES ) ff rod o (nD as Strategic Pillars * Expansion our Green PE * Grow to milion tonsofresins + ‘Newfeedstckimportterminal | Allocation production capacty
Slide 27: 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