Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q1 2023 Earnings Presentation
19 slides from Braskem's earnings presentation, May 9, 2023
Slide 1: Earnings Conference Call 1Q23
EARNINGS CONFERENCE CALL 1Q23 M AY 9 , 2 0 2 3 PUBLIC
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 1Q23
Main highlights of the Company in 1Q23 Recurring EBITDA Net Income Cash Flow R$1,063 MM R$184 MM -R$1,358 MM¹ around around around US$205 MM US$35 MM -US$261 MM¹ FINANCIAL OPERATING STRATEGIC HIGHLIGHTS HIGHLIGHTS HIGHLIGHTS Maintenance of a strong liquidity The global frequency rate of accidents Ex
Slide 4: Highlights 1Q23: Consolidated EBITDA was US$205 million
Highlights 1Q23 | Consolidated EBITDA Recurring EBITDA In 1Q23 , the Company's Recurring EBITDA (US$ million) was US$205 million 920 mainly explained by: Demand recovery, mainly due to better global industrial activities in the quarter and the inventory consumption 205 process in the chain Higher sa
Slide 5: Highlights 1Q23: Brazil
Highlights 1Q23 | Brazil Utilization Rate of Petrochemical Complexes Recurring EBITDA Bridge (%) Ethylene Due to improvement (US$ million) in demand 122 -2 -9 p.p. +5 p.p. 100 86% 72% 77% 50 0 1Q22 4Q22 1Q23 153 Resin Sales (PE + PP + PVC) (kt) Brazilian Market Exports +10% +3% 1.000 885 861 884 -5
Slide 6: Geological Event in Alagoas | Update (1/2)
Geological Event in Alagoas| Update (1/2) Total Amount and Balance of Provisions¹¹ Relocation & Compensation – PCF³ (R$ billion) Relocating and Compensating Socio-urban measures (Status on 03/31/2023) Closing and monitoring of salt wells Additional measures Financial Compensation Proposals Submitted
Slide 7: Geological Event in Alagoas | Update (2/2)
Geological Event in Alagoas| Update (2/2) Closing & Monitoring of Salt Wells Advances on Socio-urbanistic and Environmental Measures (Status on 03/31/2023) Concluded Ongoing To be started (Status on 03/31/2023) All 11 Urban Mobility actions are in progress, 8 of them already 13 are with original wel
Slide 8: Highlights 1Q23: USA & Europe
Highlights 1Q23 | USA & Europe Average utilization rate of PP plants in USA & Europe Recurring EBITDA Bridge (%) (US$ million) 98 +6 p.p. 88% 15 75% 81% 1Q22 4Q22 1Q23 69 PP Sales USA & Europe (kt) +1% 15 -0.2 600 547 515 518 400 Recurring Volume Contribution FC¹+SG&A² Recurring 200 EBITDA Margin +O
Slide 9: Highlights 1Q23: Mexico
Highlights 1Q23 | Mexico Utilization Rate of PE plants Recurring EBITDA Bridge (%) Higher ethylene supply by Pemex (US$ million) (~33 thousands barrels/day) +3 p.p. 27 100 80% 69% 72% 5 50 0 1Q22 4Q22 1Q23 PE Sales 55 (kt) Higher demand in the region 400 +11% 300 219 197 0.4 200 178 -33 100 Recurrin
Slide 10: Consolidated Cash Flow
Highlights 1Q23 | Consolidated Cash Flow Cash Generation 1Q23 (R$ million) Increase in sales volume and in the international 1,063 reference price -204 -938 Typical concentration of -226 semiannual interest payments on bonds -677 -1,173 -681 986 -1,358 -185 Recurring Working Capital Operational Stra
Slide 11: Corporate Debt Profile
Highlights 1Q23 | Corporate Debt Profile Debt Profile (US$ million) 03/31/2023(1) Debt Indicators 3,761 Sufficient liquidity to cover the liabilities coming ~60% of maturities concentrated after due in the next 76 months³ 2030 1,000 Weighted average cost of debt is FX variation 2,761 2,949 + 5,8%4 C
Slide 12: Credit Metrics and Corporate Leverage Ratio
Highlights 1Q23 | Credit Metrics and Corporate Leverage Ratio Adjusted Net Debt/Recurring EBITDA (LTM)¹ (US$ Milhões) Adjusted Net Debt (ex-Braskem Idesa) Recurring EBITDA (LTM) Comments -34% Net debt remained at comfortable levels 4,602 and in line with 4Q22 4,347 The momentum in the petrochemical
Slide 13: Update of corporate initiatives with impact on EBITDA and Cash Generation
Update of corporate initiatives with impact on EBITDA and Cash Generation Initiatives with impacts on EBITDA Impacts in 2023¹ Status 1 Revenues Optimization of global commercial management ~US$100 MM Ongoing (recurring) 2 Fixed & Variable costs Optimization of the global fixed and variable cost mana
Slide 14: Expansion of the Technology and Innovation Center in Rio Grande do Sul
The expansion of the Technology and Innovation Center in Rio Grande do Sul is part of Braskem's strategy for sustainable development through innovation R$108 million invested, R$ 64 million with Braskem has innovation as a strategic pillar physical structure and R$ 44 million in technology 2 Centers
Slide 15: Advancing in commitments to sustainable development
Braskem continues advancing in its commitments to sustainable development Publication of the Integrated Conclusion of the acquisition New renewable energy Report of Wise Plásticos agreement Publication of the Integrated Conclusion of the acquisition of a New wind power purchase Report 2022, which in
Slide 16: Expected recovery trajectory for the Petrochemical Cycle
The expectation of a recovery trajectory for the Petrochemical Cycle in the coming years is a consequence of the petrochemical industry's fundamentals Fundamentals of Supply and Demand (New Capacities - Demand growth) (MMt) Global PE Global PP Global PVC The concentration of entry of new production
Slide 17: Braskem Outlook | 2Q23 vs. 1Q23
Braskem Outlook | 2Q23 vs. 1Q23 Comments¹ Brazil Segment¹ Ethylene utilization rate remaining stable, even with the Brazil USA & Europe Mexico pitstop in the RJ cracker RJ during 2Q23 Chemicals and resins sales volume expected to remain stable Utilization Rate¹ USA & Europe Segment¹ Production level
Slide 18: Our priorities for 2023
Our priorities for 2023 Optimize asset operation and focus on cost discipline Implement financial preservation initiatives, with a focus on creating value for shareholders Prioritize, selectively, investments related to eliminating plastic waste and combating climate change, and focus on initiatives
Slide 19: Earnings Conference Call 1Q23
EARNINGS CONFERENCE CALL 1Q23 MAY 9, 2023 Investor Relations Department IR Website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Telephone: +55 (11) 3576-9531