Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q1 2024 Earnings Presentation
23 slides from Braskem's earnings presentation, May 9, 2024
Slide 1: Earnings Conference Call 1Q 2024
Braskem Idesa Petrochemical Plant,Petrochemical Braskem Idesa's Nanchital Industrial ComplexComplex, Veracruz, in Nanchital, MexicoMexico Veracruz, EARNINGS CONFERENCE CALL 1Q 2024 M AY 9 , 2 0 2 4
Slide 2: Disclaimer Regarding Forward-Looking Statements
1Q24 EARNINGS CONFERENCE DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements. These statements are not historical facts and are based on the Company’s current vision and estimates of the Company’s management regarding future economic and other cir
Slide 3: Agenda
AGENDA 1Q24 Main Highlights Operational Performance Alagoas Update Outlook for the Future 3 | PUBLIC CONFIDENTIAL
Slide 4: 1Q24 Main Highlights: Financial Highlights
1Q24 Main Highlights 1Q24 Financial Highlights US$ 230 MM + 9%¹ - US$ 273 MM -14%¹ US$ 196 MM +189%¹ -US$ 102 MM -5%¹ R$ 1.1 billion - R$ 1.3 billion R$ 972 MM -R$ 502 MM Operating Cash Recurring Cash Recurring EBITDA Net Income (Loss) Generation Generation 2 Liquidity 3 Indebtedness Profile Leverag
Slide 5: 1Q24 Operational and Strategic Highlights
During 1Q24, the Company maintained the reliability and safety of its operations, while advanced in its growth avenues 1Q24 Operational Highlights 1Q24 Strategic Highlights Traditional Business 62% physical progress of the Ethane 0.78 Terminal construction project CAF + SAF¹ (events/1MM HHT²) - 23%
Slide 6: Agenda
AGENDA 1Q24 Main Highlights Operational Performance Alagoas Update Outlook for the Future PUBLIC CONFIDENTIAL
Slide 7: Brazil Segment Recurring EBITDA up 70%
In the Brazil Segment, Recurring EBITDA in 1Q24 was US$ 210 million, up 70% from the last quarter of 2023 1Q24 Performance | Brazil Utilization Rate of Petrochemical Plants Recurring EBITDA (% utilization of ethylene capacity) Resumption of operations (US$ Million) in Bahia after scheduled shutdown
Slide 8: Green Ethylene utilization rate reached 98%
During 1Q24, the Green Ethylene utilization rate reached 98%, up 36 p.p. from the previous quarter 1Q24 Performance | Green PE Green Ethylene Utilization Rate Green PE Sales (% utilization of Green Ethylene capacity) (in Thousand tons) Resumption of +36 p.p. raw material Lower demand in supply 98% c
Slide 9: U.S. & Europe Segment Recurring EBITDA US$ 69 million
In the U.S. & Europe Segment, Recurring EBITDA in 1Q24 was US$ 69 million, 20% lower than in 4Q23 1Q24 Performance | U.S. & Europe Average Utilization Rate of PP Plants in the USA & Europe Recurring EBITDA (% of average utilization of US & European PP capacities) Unscheduled (US$ Million) shutdown i
Slide 10: Mexico Segment sales volume up 17%
In the Mexico Segment, sales volume increased 17% and Recurring EBITDA increased 39% compared to 4Q23 1Q24 Performance | Mexico Average Utilization Rate of PE Plants Recurring EBITDA (% average utilisation of PE capacities) (US$ Million) -1 p.p. 84% 83% 72% +39% 1Q23 4Q23 1Q24 3 -3 37 11 PE Sales 26
Slide 11: Consolidated Recurring EBITDA US$ 230 million
Braskem's consolidated Recurring EBITDA in 1Q24 was US$ 230 million, 9% higher than 4Q23 1Q24 Performance| EBITDA Recurring EBITDA Key drivers of the (US$ Million) 1Q24 vs 4Q23 SALES • Brazil: Increase in sales volume in the Brazilian market of +9% main chemicals (+19%) and resins (+7%) • Mexico: In
Slide 12: Operating cash generation of R$ 972 million
In 1Q24, the Company recorded operating cash generation of R$ 972 million, 189% higher than in 4Q23 1Q24 Performance| Cash Flow Cash Generation (Consumption) in 1Q24 (R$ million) CAPEX ~9% lower than the estimated forthe estimate for theperiod perioddueduetoto -650 the prioritization of initiatives
Slide 13: Robust cash position and very long debt profile
Braskem maintains its robust cash position and very long debt profile, with 63% of debts maturing as of 2030 1Q24 Performance| Indebtedness Debt Profile (US$ million) 03/31/20241 Debt Indicators Total Cash Principal Debt linked to Sustainability2 Sufficient liquidity to cover liabilities coming due
Slide 14: Agenda
AGENDA 1Q24 Main Highlights Operational Performance Alagoas Update Outlook for the Future 14 | PUBLIC CONFIDENTIAL
Slide 15: Work fronts in Alagoas
The Company is continuously working on the work fronts in Alagoas 1 RELOCATION & COMPENSATION 2 SOCIO & URBAN MEASURES 3 CLOSURING AND MONITORING OF SALT MINES 4 CONSOLIDATED FINANCIAL PROVISION 15 | PUBLIC CONFIDENTIAL PUBLIC
Slide 16: Relocation and Compensation, and Socio and Urban Measures
Relocation and Compensation, and Socio and Urban Measures (Status as of 4/30/2024) 1 Relocation and Compensation 2 Socio and Urban Measures Urban Mobility Actions Actions in Vacant Areas 99.7% Of the 11 urban mobility projects, Overall progress of the Encosta do of the residents' Relocation Program
Slide 17: Closuring and Monitoring of Salt Mines
3 Closuring and Monitoring of Salt Mines (Status as of 4/30/2024) Closing Technique # STATUS Comments 3 4 7 111 15 17 5 cavities with completed filling Sand filling (Backfilling) 13 6 cavities recently included, previously in the monitoring 19 20 21 25 27 29 34 group, are in activity planning 5 cavi
Slide 18: Consolidated Financial Provision
4 Consolidated Financial Provision (Status as of 3/31/2024) Total Amount and Balance of Provisions¹ (R$ billion) Disbursements Other obligations to pay 15.5 53% Current Liabilities 47% Non-Current Liabilities -10.0 4.9 -1.2 0.5 -11.1 Total Amount of Provisions Disbursements and Realization of the Pr
Slide 19: Agenda
AGENDA 1Q24 Main Highlights Operational Performance Alagoas Update Outlook for the Future PUBLIC CONFIDENTIAL
Slide 20: Outlook | 1Q24 vs. 2Q24
Outlook | 1Q24 vs. 2Q24 Braskem Outlook | 2Q24 vs 1Q24 2Q24 vs. Brazil USA & Europe Mexico 1Q24 Maintenance of production in the crackers and Utilization Green PE, with the impacts of climate events in Rio Maintenance of the production level Higher than 1Q24 due to stable ethane Rate¹ supply Grande
Slide 21: Corporate initiatives impacting EBITDA and Cash Generation
R ES I LIENCE A N D Advancement of corporate initiatives with an FI N A N C IA L HEA L TH impact on EBITDA and Cash Generation Fronts of action Impact in 2024 Deliverables 1Q24 EBITDA Commercial ➢ Strengthen commercial strategy ~US$ 20 MM ~US$ 100 MM Fixed and Variable ➢ Intensify measures to reduce
Slide 22: Initiatives supporting priorities for 2024
Braskem continues to implement initiatives that support its priorities for 2024 PRIORITIES 2024 PROGRESS IN 1Q24 Commitments established in Maceió Continuous progress on all fronts ~R$10 billion of the financial provision disbursed by March/2024 Reduction of US$ 13 million (R$ 66 million) in sales a
Slide 23: Investor Relations
EARNING CONFERENCE CALL Q1 2024 MAY 9, 2024 MAY 9 , 2024 Investor Relations IR Website: https://www.braskem-ri.com.br/ Email: braskem-ri@braskem.com.br Phone: +55 (11) 3576-9531 PUBLIC 23 | PUBLIC PUBLIC