Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q4 2022 Earnings Presentation
21 slides from Braskem's earnings presentation, Mar 23, 2023
Slide 1: Earnings Conference Call 4Q22 & 2022
EARNINGS CONFERENCE CALL 4Q22 & 2022 MARCH 23, 2023 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 4Q22 and 2022
Main highlights of the Company in 4Q22 and 2022 Consolidated Highlights Historical record of Green PE Ethane import terminal in In 2022, we achieved ~31% of sales volume in 2022 Mexico with physical progress our 2030 sustainable development commitments¹ Expansion of current green ethylene of 25% by
Slide 4: Highlights 4Q22 & 2022 | Consolidated EBITDA
Highlights 4Q22 & 2022 | Consolidated EBITDA Recurring EBITDA – 4Q22 & 2022 Comments: (US$ million) In 4Q22, the Company's Recurring EBITDA was US$ -32 million, mainly explained by: -64% 5,645 i. lower petrochemical spreads in the international market ii. lower sales volume of resins and main chemic
Slide 5: Operational Financial Highlights | Brazil Segment
Highlights 4Q22 & 2022 | Brazil Segment Operational Financial Utilization Rate of Petrochemical Complexes Recurring EBITDA Bridge (%) Ethylene (US$ million) Adequacy of production due to lower international spreads -13 p.p. -7 p.p. -3 p.p. -58 -161 100 85% 79% 100 81% 78% 72% 50 50 0 0 -2,281 4Q21 3
Slide 6: Operational Highlights 4Q22 e 2022 | Green PE
Highlights 4Q22 e 2022 | Green PE Operational Green Ethylene Utilization Rate Main characteristics of Braskem's Green PE (%) Green PE is a differentiated product with unique -9 p.p. -6 p.p. characteristics in the global petrochemical industry -6 p.p. 105% 102% 101% 95% • Renewable feedstock, produce
Slide 7: Geological event in Alagoas (1/2) - Financial Update
Geological event in Alagoas (1/2) - Financial Update Total amount of provisions¹ Balance of provisions in 4Q22 Disbursement Schedule (R$ billion) (R$ billion) (R$ billion) The total amount of provisions is R$13.1 billion, of ...in 4Q22, the balance of provisions related to ...with approximately 64%
Slide 8: Geological event in Alagoas (2/2) – Progress on Work Fronts
Geological event in Alagoas (2/2) – Progress on Work Fronts Relocation & Compensation - PCF¹ Closing & Monitoring of Wells Socio-urbanistic & Environmental Measures (Status in 02/28/23) (Status in 02/28/23) (Status in 02/28/23) Financial Compensation Proposals Submitted Concluded In progress Not sta
Slide 9: Operational Financial Highlights | USA & Europe Segment
Highlights 4Q22 & 2022 | USA & Europe Segment Operational Financial Utilization rate of PP plants Recurring EBITDA bridge (%) US PP Europe PP (US$ million) -1 p.p. -10 p.p. -105 +1 p.p. -7 p.p. 73% 84% 74% 78% 75% 77% 86% 91% 79% 81% -944 4Q21 3Q22 4Q22 2021 2022 PP sales 1,608 (kt) US PP Europe PP
Slide 10: Operational Financial Highlights | Mexico Segment
Highlights 4Q22 & 2022 | Mexico Segment Operational Financial Capacity Utilization of PE plants Recurring EBITDA bridge (%) (US$ million) Higher ethane supply via Fast Track -7 p.p. +7 p.p. 154 100 81% 76% 100 69% 66% 73% 50 50 -454 0 0 4Q21 3Q22 4Q22 2021 2022 PE sales 620 -9 (kt) Due to higher -99
Slide 11: Highlights 4Q22 & 2022 | Consolidated Cash Flow
Highlights 4Q22 & 2022 | Consolidated Cash Flow Cash Generation in 2022 (R$ million) 4,295 -3,898 10,571 Recurring Free Cash Flow Yield of -2,905 33% Free Cash Flow -998 Yield of -951 6,016 18% -99 -2,743 3,273 Recurring EBITDA Working Capital CAPEX Interest Paid Taxes Paid Strategic Others Recurrin
Slide 12: Highlights | Corporate Debt Profile
Highlights 4Q22 & 2022 | Corporate Debt Profile Debt Profile (US$ million) 12/31/2022(1) Debt Indicators: Strong liquidity position, with most liabilities maturing • Leverage: 2.42x in long term (51% after 2030) • Sufficient liquidity to cover liabilities coming due in 3,380 next 60 months³ • Averag
Slide 13: Update of Braskem's global strategy for 2030
The update of Braskem's global strategy for 2030 will enable the sustainable growth of the business with value creation for shareholders STRATEGIC PILLARS AND THEIR AMBITIONS GROWTH AVENUES Productivity and Traditional Competitiveness Bio-based Recycling Business Drive toward top quartile of the glo
Slide 14: Traditional business growth through selective high value-added investments
The company's traditional business will grow through selective high value-added investments, with improvements in competitiveness and a focus on decarbonization GROWTH AVENUES Tradicional Business Ethane Import Terminal Industrial Decarbonization Program Transform for Value JV between Braskem Idesa
Slide 15: Growing bio-based products and renewable raw materials
Our strategy seeks to grow our portfolio of bio-based products and expand the use of renewable raw materials through strategic and financial partnerships GROWTH AVENUES Bio-based DBN¹ of the current green Expansion of current green ethylene production + 60 kta² capacity in Triunfo, Rio Grande do Sul
Slide 16: Recycling action fronts
Sales of 54,000 tons, an increase of 144%, of products with recycled content, in addition to several partnerships signed for the development of new technologies GROWTH AVENUES Recycling 144% increase SALE OF PRODUCT WITH RECYCLABLE Sustainable product 40 grades 54kt compared to 2021 CONTENT - (KT) 1
Slide 17: Recovery trajectory expected 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 18: Corporate initiatives to improve cash generation in the down cycle
We established corporate initiatives to improve our cash generation during the petrochemical down cycle Initiatives with impact on EBITDA Impact in 2023¹ 1 Revenue Optimization of global commercial management ~US$100 MM (recurrent) 2 Fixed and Optimization of global fixed and variable cost managemen
Slide 19: Braskem Outlook | 4Q22 vs. 1Q23
Braskem Outlook | 4Q22 vs. 1Q23 Brazil United States Europe Mexico Utilization Expectation of higher Expectation of higher PP PP production expected to PE production expected to Rate¹ ethylene production production increase remains stable Resin sales expected to PP sales expected to remain Expectati
Slide 20: 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 21: Earnings Conference Call 4Q22 & 2022 – Investor Relations
EARNINGS CONFERENCE CALL 4Q22 & 2022 MARCH 23, 2023 Investor Relations Department IR Website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Telephone: +55 (11) 3576-9531 21