Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q3 2022 Earnings Presentation
20 slides from Braskem's earnings presentation, Nov 9, 2022
Slide 1: Earnings Conference Call 3Q22
Braskem's green ethylene spherical storage tank in Triunfo, RS - Brazil EARNINGS CONFERENCE CALL 3Q22 NOVEMBER 9, 2022
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: Braskem's 3Q22 highlights
Braskem's 3Q21 highlights Petrochemical Scenario during 3Q22 ESG Highlights • Global macroeconomic uncertainties • Launch of Voqen, an electricity and natural gas trading house, and • Geopolitical tensions Oxygea, a business and innovation hub E • Restrictions in China related to the zero-COVID poli
Slide 4: 3Q22 Highlights | Braskem Consolidated
3Q22 Highlights | Braskem Consolidated Recurring EBITDA – 3Q22 & 9M22 Comments: (US$ million) -54% • In 3Q22, Recurring EBITDA was US$371 million, 1,469 4,510 1,469¹ down 54% on 2Q22, mainly due to: i. lower international spreads for resins in Excluding the accounting Brazil, for PP in USA and Europ
Slide 5: 3Q22 Highlights | Brazil
3Q22 Highlights | Brazil Operational Financial Utilization Rate of Petrochemical Complexes Recurring EBITDA bridge (%) (US$ million) 0 p.p. +5 p.p. Increase vs. 2Q22 due to restarting the -2 79% 74% 79% petrochemical complex 454 30 in RS after scheduled -88 maintenance shutdown -54 -29 312 3Q21 2Q22
Slide 6: Geological event in Alagoas (1/2) - Financial Update
Geological event in Alagoas (1/2) - Financial Update Total amount of provisions¹ Balance of provisions in 3Q22 Disbursement Schedule (R$ billion) (R$ billion) (R$ billion) The total amount of provisions is R$13.0 billion, of ...In 3Q22, the balance of provisions related to the ...with 67% recorded u
Slide 7: Geological event in Alagoas (2/2) - Progress on Work Fronts
Geological event in Alagoas (2/2) – Progress on Work Fronts Relocation & Compensation - PCF¹ Closing & Monitoring of Wells Socio-urbanistic & Environmental Measures (Status as of October 31, 2022) (Status as of October 31, 2022) (Status as of October 31, 2022) Financial Compensation Proposals Submit
Slide 8: 3Q22 Highlights | USA & Europe
3Q22 Highlights | USA & Europe Operational Financial Utilization rate of PP plants Recurring EBITDA bridge (%) In USA, decline due (US$ million) -1 p.p. to region's weaker demand and short -7 p.p. unscheduled 94% 92% shutdowns 81% 79% 74% 78% -42 3Q21 2Q22 3Q22 US PP Europe PP -140 237 PP sales (kt)
Slide 9: 3Q22 Highlights | Mexico
3Q22 Highlights | Mexico Operational Financial Capacity Utilization of PE plants Recurring EBITDA bridge (%) +9 p.p. (US$ million) Due to higher 76% ethane supply 68% 67% (PEMEX and Fast -7 Track) 3Q21 2Q22 3Q22 PE sales 96 -81 (kt) -5% 190 180 Due to restocking 159 trend at Braskem Idesa 10 14 -3 R
Slide 10: Start of construction of Ethane Import Terminal in Mexico
Start of construction of Ethane Import Terminal in Mexico, with physical completion of 22% as of September 2022 Ethane Import Terminal Braskem Idesa’s feedstock supply (kbpd) I JV between Braskem Idesa and Advario, each Share Capital holding a 50% interest Pursuant to the amendment executed in 2021,
Slide 11: In 3Q22, the Company's cash flow was R$889 million
In 3Q22, the Company's cash flow was R$889 million Cash Flow (R$ million) – 3Q22 -1.142 Payment of semiannual interest on bonds 2.586 -1.069 1.967 -375 -368 1.557 -41 • Accounts receivable: lower sales volume and lower -668 international price references 889 • Inventory: lower international price re
Slide 12: Maintenance of very long debt maturity profile
Maintenance of very long debt maturity profile Debt Profile (US$ million) Sep/30/22(1) Strong liquidity position, with most liabilities maturing Debt Indicators 3.205 in long term (52% after 2030) • Sufficient liquidity to cover liabilities coming due in next 63 months¹ • Average debt term of around
Slide 13: Solid credit metrics and low corporate leverage ratio
Braskem continued to present solid credit metrics and a low corporate leverage ratio in the quarter Adjusted Net Debt/Recurring EBITDA¹ Financing Sources Adjusted Net Debt (ex-Braskem Idesa) Recurring EBITDA (LTM)² Corporate Leverage (Ex-Braskem Idesa) 1.55x Banks Capital 1.22x 5% 81% Markets Brazil
Slide 14: ESG: Second edition of ESG Day
ESG: Braskem held the second edition of its ESG Day, a meeting with the financial market to share the advances made in commitments to sustainable development Braskem believes that global challenges and trends are business opportunities and have become key growth avenues ELIMINATING PLASTIC WASTE COM
Slide 15: ESG: Launch of Voqen, Sustainea and Oxygea
ESG: In the quarter, Braskem launched Voqen, Sustainea and Oxygea. Initiatives aligned with the Company's sustainable development strategy SUSTAINABLE BUSINESS AND 1 ENERGY TRANSITION 2 3 PRODUCTS PORTFOLIO INNOVATION HUB • Voqen: a wholly owned subsidiary • Sustainea: JV formed by Braskem • Oxygea:
Slide 16: ESG: Human rights and social responsibility initiatives
ESG: in the quarter, we continued to implement initiatives to promote human rights and social responsibility Initiatives for needy population Partnership with the NGO Ação da Cidadania in campaign to collect funds for HUMAN RIGHTS AND SOCIAL food staples in donations from volunteer team members. Bra
Slide 17: Petrochemical Scenario 2022 – PE and PP
Petrochemical Scenario 2022 – PE and PP US PE – Naphtha ARA Spread¹ US PE – Ethane US Spread¹ US PP – US Propylene Spread¹ ($/ton) ($/ton) ($/ton) 1,708 1,451 1,589 1,764 1,535 2,833 2,565 2,535 1,052 1,155 1,407 1,123 2,109 1,000 1,052 986 1,552 1,668 884 866 684 764 1,587 1,396 1,345 466 635 434 4
Slide 18: Braskem Outlook | 4Q22 vs. 3Q22
Braskem Outlook | 4Q22 vs. 3Q22 Brazil United States Europe Mexico Utilization Ethylene production expected to PP production expected to PP production expected to PE production expected to Rate¹ decrease remain stable remain stable remain stable Sales volume for resins and chemicals expected to decr
Slide 19: Recap: Our main goals for 2022
Recap: Our main goals for 2022 Strategic Pillars Targets and Status for 2022 Productivity and • Capture value through initiatives related to Transform for Value program, reaching recurring Competitiveness gains of US$302 million/year¹ in 2022 (90% of target already achieved) • Intensify actions in r
Slide 20: Earnings Conference Call 3Q22 – Investor Relations
EARNINGS CONFERENCE CALL 3Q22 NOVEMBER 9, 2022 Investor Relations Department IR Website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Telephone: +55 (11) 3576-9531 20