Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q3 2023 Earnings Presentation
20 slides from Braskem's earnings presentation, Nov 9, 2023
Slide 1: Earnings Conference Call 3Q23
PP plant in Paulínia, São Paulo, Brazil EARNINGS CONFERENCE CALL 3Q23 NOVEMBER 9, 2023 PUBLIC 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: 3Q23 Company Highlights
3Q23 Company Highlights Net income Recurring Recurring EBITDA (Loss) Cash Flow¹ -R$1.388 MM R$921 MM -R$2.418 MM -R$329 MM¹ around -US$284 MM around around around considering the payments regarding US$187 MM -US$497 MM -US$69 MM¹ the Geological Event in Alagoas FINANCIAL OPERATING STRATEGIC HIGHLIGH
Slide 4: Highlights 3Q23 | Consolidated EBITDA
Highlights 3Q23 | Consolidated EBITDA Recurring EBITDA Increase in Recurrent EBITDA (US$ million) explained mainly by: 371 Increase in resins sales volume, Brazilian +34% market, and exports, and Green PE in the Brazil 187 segment 140 Increase in PP volume in the United States and Europe segment 3Q2
Slide 5: Highlights 3Q23 | Brazil
Highlights 3Q23 | Brazil Utilization Rate of Petrochemical Complexes Recurring EBITDA (% ethylene capacity utilization) (US$ million) Unscheduled shutdowns at 115 -4 p.p. Braskem and 79% 72% 68% customers 39 81 -5 9 -8 3Q22 2Q23 3Q23 Resin Sales (PE + PP + PVC) (in thousand tons) Brazilian Market Ex
Slide 6: Highlights 3Q23 | Green PE
Highlights 3Q23 | Green PE Utilization Rate of Green Ethylene Opening of a Braskem office in Japan (% utilization of Green Ethylene capacity) Conclusion of ramp-up and industrial efficiency In recent years, Japan +24 p.p. initiatives has been developing and 102% 108% implementing public 84% policies
Slide 7: Highlights 3Q23 | Bio-based Growth Avenue
Highlights 3Q23 | Bio-based Growth Avenue Establishment of JV Braskem Siam¹ BRASKEM GLOBAL STRATEGY FOR 2030 Growth Avenue Bio-based • Grow in bio-based resins and chemical products • Increase the use of renewable feedstocks Joint venture between & Objective of expanding the production capacity of g
Slide 8: Geological event in Alagoas | Updates (1/2)
Geological event in Alagoas | Updates (1/2) Relocation & Compensation – PCF¹ Closing & Monitoring of Wells (Status as of 09/30/2023) (Status as of 09/30/2023) Concluded In progress Not started Update on Relocation and Compensation Proposals in 14 have the original well relation to the total amount e
Slide 9: Geological event in Alagoas | Updates (2/2)
Geological event in Alagoas | Updates (2/2) Advances on Socio-urbanistic and Environmental Measures Total Amount and Balance of Provisions¹ (Status as of 09/30/2023) (R$ billion) All 11 Urban Mobility actions are in progress, 8 of which already have executive projects concluded. Of these actions, 3
Slide 10: Highlights 3Q23 | USA & Europe
Highlights 3Q23 | USA & Europe Average utilization rate of PP plants in USA & Europe Recurring EBITDA (Average % utilization of US and European POP capabilities) (US$ million) +6 p.p. +1 p.p. 75% 80% 81% 60 3Q22 2Q23 3Q23 23 PP Sales (in thousand tons) 12 24 1 +7% +1% 600 509 536 543 400 200 Recurri
Slide 11: Highlights 3Q23 | Mexico
Highlights 3Q23 | Mexico Utilization Rate of PE plants Recurring EBITDA (% average utilization of PE capacities) (US$ million) Instability in the -20 p.p. electricity supply in the region 76% 86% 66% 3T22 2T23 3T23 40 0 PE Sales (in thousand tons) -27 Optimized inventory 0% management 214 214 180 -6
Slide 12: Highlights 3Q23 | Mexico Segment (Terminal)
Highlights 3Q23| Mexico Segment (Terminal) Financing for Ethane Import Terminal BRASKEM’S GLOBAL STRATEGY FOR 2030 Conclusion of financing in the Growth Avenue amount of US$408 million Traditional Business • Grow existing businesses through selective investments, including ✓ Issued: Terminal Química
Slide 13: Highlights 3Q23 | Consolidated Cash Flow
Highlights 3Q23 | Consolidated Cash Flow Cash Generation (Consumption) in 3Q23 (R$ million) -1.043 1.306 921 -1.244 Optimization of Working capital -89 -329 -182 1 -1.388 -1.059 Recurring Working Capital Operational Strategic Interest Paid Investimentos Outros Recurring Cash Geological Cash Flow EBI
Slide 14: Highlights 3Q23 | Corporate Debt Profile
Highlights 3Q23 | Corporate Debt Profile Debt Profile (US$ million) 09/30/2023(1) Total cash Total debt Debt linked to Sustainability² Stand by Debt Indicators Sufficient liquidity to cover liabilities coming due in 4,415 next 75 months³ Weighted average cost of debt is FX variation + 6.2%4 3,415 63
Slide 15: Highlights 3Q23 | Corporate Credit and Leverage Metrics
Highlights 3Q23 | Corporate Credit and Leverage Metrics Adjusted Net Debt/Recurring EBITDA (LTM)¹ (US$ million) Adjusted Net Debt (ex-Braskem Idesa) Recurring EBITDA (LTM) Stable Net Debt Comments in the period -32% Quarterly Average Net debt remained stable in the period, +5% 2017-2022 compared to
Slide 16: Petrochemical Scenario – PE e PP
Petrochemical Scenario¹ – PE e PP US PE – Naphtha ARA Spread2 PE US – Ethane US Spread3 PP Asia – Naphta ARA Spread4 (US$/ton) (US$/ton) (US$/ton) Average 3Q23 670 +10% +27% Average 3Q23 841 800 Average 3Q23 252 +15% 742 ~740 271 683 586 +11% +6% -16% 331 345 ~290 334 346 249 243 265 292 278 244 ~27
Slide 17: Braskem Outlook | 3Q23 vs. 4Q23
Braskem Outlook | 3Q23 vs. 4Q23 Comments¹ Brasil¹ Utilization Rate¹: reduction due the schedule maintenance shutdown in the petrochemical complex in Bahia during 4Q23 Brasil USA & Europe Mexico Sales Volume¹: decrease in resins due to seasonality in the period, and reduction for chemicals in functio
Slide 18: Update of corporate initiatives with impact on EBITDA and Cash Generation
Update of corporate initiatives with impact on EBITDA and Cash Generation Fronts of Action I II III IV V Fixed and Non-recurring Commercial Working Capital CAPEX Variable costs monetization Optimization of global fixed and Optimizing working capital Optimizations in global CAPEX allocation optimizat
Slide 19: Save the Date
SAVE THE DATE — DAY 11/27 | MORE INFORMATION, BRT 10 A.M SOON. EST 08 A.M LONDRES 13 P.M 4 Bs
Slide 20: Earnings Conference Call 3Q23 – Investor Relations
EARNINGS CONFERENCE CALL 3Q23 NOVEMBER 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 PUBLIC