Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — FY2024 Earnings Presentation
50 slides from Braskem's earnings presentation, Feb 27, 2025
Slide 1: Contents
Contents 1. MESSAGE FROM MANAGEMENT 2. OUTLOOK 3. GLOBAL PETROCHEMICAL INDUSTRY 2024 4. OPERATING PERFORMANCE 2024 5. CONSOLIDATED FINANCIAL OVERVIEW 6. VALUE CREATION STRATEGY 7. ESG AGENDA – 2024 HIGHLIGHTS 8. SUSTAINABLE INNOVATION 9. CAPITAL MARKETS & INVESTOR RELATIONS 10. AUDITORIA EXTERNA
Slide 2: Reference prices and spreads 2024 vs 2023
2023 Chg. (8) (ay/(8) Brent (US$/bbl) 81 3 2% Natural Gas (US$/MMBtu) 2.22 254 -13% Prices Naphtha 657 643, 2% Ethane 141 182 -23% Propane 405 370 9% Resins (i) 973 930 5% PEUS 1,029 044 9% PP Asia 961 951 1% PVC Asia 774 819 6% Main Chemicals (i) 1062 1,041 2% Caustic Soda US 421 489 14% 232 246 6%
Slide 3: U.S. PE – U.S. ethane prices
[7] U.S. PE – U.S. ethane prices
Slide 4: Resin export volume
Resin export volume remained in line with 2023, primarily due to the prioritization of serving the Brazilian market, which was partially offset by increased export opportunities to South American countries.
Slide 5: Main chemicals sales volume
d) Main chemicals sales volume: compared to 2023, main chemicals sales volume was higher (+12%), mainly due to the increased sales volume of gasoline, ethylene, benzene and paraxylene due to higher product availability for sale.
Slide 6: Brazilian market sales
2023 2024 Wl Brazilian Market
Slide 7: Updates on Alagoas
4.1.2 UPDATES ON ALAGOAS The provision in relation to the geological event in Alagoas, based on its assessment and that of its external advisors, with short and long-term effects, and the best estimate of expenses to implement the various measures, presented the following movement at the end of 2024
Slide 8: Alagoas cavities closure provision
Based on a new recommendation from the specialized technical consultancy hired by the Company to conduct studies on the definitive closure of the salt cavities, the provision for filling the 11 pressurized cavities with solid material, currently belonging to the Plugging and Pressurization group, wa
Slide 9: Net revenue
A) NET REVENUE: the increase compared to 2023 (+3%) is mainly explained by: (i) a 5% increase in the average international reference price of resins; (ii) a 2% increase in the average international reference price of main chemicals; (iii) an increase of 11%, or 268 thousand tons, in the sales volume
Slide 10: SG&A, other revenue and recurring EBITDA
C) SG&A Expenses: in the year, the reduction in U.S. dollar (-15%) is mainly explained by: (i) the reversal of provisions for losses on accounts receivable; and (ii) the implementation of initiatives aimed at reducing fixed costs during the period. D) Other Revenue (Expense), Net : totaled US$ -426
Slide 11: Sales volume of Green PE
b) Sales volume of Green PE (I'm green TM biobased): the increase (+23%) is mainly explained by the higher availability of product for sale and commercial market development efforts following the completion of the green ethylene production capacity expansion project carried out in 2023. The sales vo
Slide 12: Sales of green PE annual
Sales (kton) of green PE| Annual 155 2023 2024 ll Green PE
Slide 13: Financial Overview
Financial Overview A) NET SALES REVENUE OF PE I’M GREEN TM BIO-BASED AND ETBE [8] : the increase (+6%) is mainly explained by the increase of 36 thousand tons, or 23%, in the sales volume of Green PE I’m green TM bio-based.
Slide 14: Product with renewable feedstock
[8] Product that contains renewable feedstock, ethanol in its composition
Slide 15: Operational overview: resin demand
4.2.1 OPERATIONAL OVERVIEW a) Demand for resins: in North America, the demand for PP was higher (+6%) mainly explained by; (i) the improvements in the region's economic conditions; and (ii) the increased demand from the industrial, packaging, textile, and consumer goods sectors. In Europe, PP demand
Slide 16: Sales volume
c) Sales volume: Compared to 2023, the reduction (-7%) is mainly explained by; (i) lower availability of product for sale associated with a lower utilization rate in 2024; and (ii) the prioritization of sales with higher added value.
Slide 17: Net revenue and COGS
A) NET REVENUE: the increase in U.S. dollar (+4%) and in Brazilian real (+11%) is mainly explained by the 9% and 2% increase in international PP price references in the United States and Europe, respectively. B) COST OF GOODS SOLD (COGS): the increase in U.S. dollar (+4%) and in Brazilian real (+12%
Slide 18: SG&A expenses
C) SG&A Expenses: the reduction in U.S. dollar (-5%) is mainly explained by: (i) lower expenses with logistics and storage; and (ii) the implementation of initiatives aimed at reducing fixed costs during the
Slide 19: Net revenue
A) NET REVENUE: the increase in U.S. dollar (+8%) and in Brazilian real (+16%) compared to 2023 is mainly explained by: (i) an increase of 42 thousand tons, or 5%, in the volume of PE sales during the year; (ii) the increase in the international PE reference price in the international market.
Slide 20: SG&A and other revenue
C) SG&A EXPENSES: Compared to 2023, the reduction in U.S. dollar (-16%) and in Brazilian real (-8%) is mainly explained by lower expenses with logistics and storage. D) Other Revenue (Expense), Net: totaled US$8 million in the year, mainly due to the ethane resale operation in the international mark
Slide 21: Income Statement 2024
Income Statement 2024 2023 ha. R$ million (a) (B) (A)/(B) ‘Gross Revenue 90,080 81,638 10% Net Revenue 71A1 70,569 10% Cost of Good Sold (7iaia) (67,548) 6% Gross Profit 5,997 3,021, 98% Seling and Distrbution Expenses (set) (4,916) 4% (Loss) reversals for impairment of accounts receivable 108 (3) n
Slide 22: Net Revenue annual consolidated
Net Revenue (R$ million) | Annual | Consolidated* 72023 72024 Brazil Ml Groon PE +ETBE ll Mexico Exports? ll USA and Europe ves not colder Feditock real ae oters *arsiars ony expos from Baa “acheter 2003 te cosiar ta vole of Graan PE sles ives nthe Brailan markt and exports,
Slide 23: Other revenue (expense), net
OTHER REVENUE (EXPENSE), NET In 2024, the Company recorded a total net expense of R$2.1 billion, mainly due to (i) the supplement to the provision for the Alagoas geological event by updating cost estimates relating to updates to the mining front closure plan, implementation and advancement in the m
Slide 24: Other revenue (expense), net table
(OTHER REVENUE (EXPENSE), NET* 2024 2023 Chg. R$ million (a) (8) (a)/(B) Other Revenues Fines, imprisionments and indemnities - 64 -100% Taxes 266 490 46% Others 712 1215 41% Total Other Revenues 978 1,769 -45% Other Expenses Provision for lwsuits, net of reversals (140) (67) 60% Provision for damag
Slide 25: Financial Overview consolidated 2024
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Slide 26: Financial Result
Financial Result (R$ million) 2028 2023 cho. Consolidated Oy (@) (OO) Expenses, (6,853) (5,588) 23% (918) (3,780) 30% (1935) (1,808) Pe Financial Revenue 4,719 1,678 2% Interest 1367 4,520 “10% others 352 158 123% Net Foreign Exchange Variation (11,520) su na, Foreign Exchange Variation (Expense) (2
Slide 27: Zero-cost collar hedges
Strike Put Strike Call EDR teat (average) (average) (R$ million) Zer0-Cost Collar 1025, 4.59 649 1,378 Zero-Cost Collar 2925 452 647 1.273 Zer0-Cost Collar 3025 4.65 658 72 Zero-Cost Collar 405 49 7.30 934 Zero-Cost Collar 1026 sat 779 22 Zero-Cost Collar 2926 537 12 179 Total 471 6.81 5,358
Slide 28: Braskem Idesa ethane import terminal
Regarding Braskem Idesa, the strategic investment went towards the ongoing construction of the ethane import terminal in Mexico, through Terminal Química Puerto México (TQPM).
Slide 29: 2024 main investments
In 2024, the main investments related to the Sustainable Development Macro Goals were; (i) projects related to reducing CO 2 e emissions and enhancing the energy efficiency of industrial assets; and (ii) projects related to industrial safety.
Slide 30: Investments in 2025
Investments in 2025 The investment expected to be made throughout 2025 by Braskem (formerly Braskem Idesa) is US$484 million¹ (R$2.9 billion), approximately 26% lower than the historical average of the last 6 years (US$672 million), and can be classified as follows:
Slide 31: 2025 sustainability investments
For 2025, investments related to the Macro-Objectives for sustainable development total US$142 million (R$851 million), 30% of corporate investments, mainly directed to projects related to health and safety, sustainable innovation, and operational eco-efficiency.
Slide 32: Braskem Idesa
Braskem Idesa The investment planned for 2025 by Braskem Idesa is US$104 million (R$623 million), with US$23 million related to the ethane import terminal being financed through the Syndicated Project Finance
Slide 33: Cash Flow
CASH FLOW In 2024, the Company generated approximately R$ 4.1 billion in operational cash flow, mainly due to (i) a 54% increase in consolidated Recurring EBITDA in Brazilian reais; (ii) a 31% reduction in operational CAPEX, without impacting the reliability and safety of operations; and (iii) lower
Slide 34: Cash Flow Generation
ssh Flow Generation 2024 = 2023 R$ million (a) (8)__(a)/(8) Recurring EBITDA 5,759 3,737 54% ‘Changes in Working Capital* 1,109 3,793 -71% Operational CAPEX (2623) (3,788) 31% Strategic Investments? (17) (742) 84% Operational Cash Generation (4,127 3,000 38% Interest Paid 4261) (@,551)——(20% ‘Income
Slide 35: Debt and liquidity
In line with the strategy of maintaining financial health, Braskem issued debt instruments in the international market (bonds) in October 2024 in the amount of US$850 million maturing in October 2034. Also, as part of its strategy to maintain the debt maturities lengthy, the Company conducted a part
Slide 36: Ratings
Ratings In February 2024, S&P Global Ratings downgraded Braskem to 'BB+'/'brAAA' with a stable outlook. In June 2024, Fitch Ratings affirmed Braskem's rating at 'BB+'/'AAA'(bra)' and removed the negative watch, updating the outlook to Stable. In September 2024, S&P Global Ratings reaffirmed Braskem'
Slide 37: Braskem Idesa Debt
Braskem Idesa Debt* Dec/24 Chg. US$ million @) /(@) Gross Debt 2,191 0% in RS - 7a. in USS 2,91 0% (-) Cash and Cash Equivalents 231 4% in RS - 7a. in USS 231 % (=) Net Debt 1,960 1% nS ~ Ta. in US$ 1,960 1% ‘Recurring EBITDA (LTM)? 264 56% Net Debt/Recurring EBITDA (LTM) Tax 36% “Tt does not consid
Slide 38: Corporate credit rating - Braskem Idesa
Agency Ratings Outlook Date FITCH B+ Stable 12/13/2024 S&P B Negative 07/05/2024 Ratings In December 2024, S&P affirmed the “B” rating for Braskem Idesa with a “Negative” outlook. In December 2024, Fitch Ratings affirmed Braskem Idesa's rating of “B+” and updated its outlook from "Negative" to "Stab
Slide 39: Safety and social responsibility
7.2 SAFETY AND SOCIAL RESPONSIBILITY 7.2.1 HEALTH & SAFETY § 2020-2030 long-term goals: Security is a non-negotiable value for Braskem. In 2024, in relation to the Health and Safety dimension, the Company achieved 61% of the objectives for 2030, with emphasis on the rate of reported occupational dis
Slide 40: Post-Employment Benefits
Post-Employment Benefits § Brazil: 93% of the Company's employees participate in the defined contribution pension plan, which pays pension and retirement amounts that supplement the amounts paid by the official pension system of the Brazilian government. In addition to the pension plan, employees wh
Slide 41: Stock performance BRKM5 & BRKM3
In 2024, there were no material changes in the ownership structure of the Company, such as capital increases, stock splits, reverse stock splits, bonus shares or capital decreases. § B3 (Level I Corporate Governance) – BRKM5 & BRKM3 STOCK PERFORMANCE [19] Ibovespa, B3's flagship index, ended 2024 do
Slide 42: Updates on Alagoas
11.1 UPDATES ON ALAGOAS The Company operated, since its formation and subsequently as the successor of the company Salgema, salt mining wells located in Maceió city, Alagoas state, with the purpose of supplying feedstock to its chlor-alkali and dichloroethane plant. In March 2018, an earthquake hit
Slide 43: Amounts recorded by action front
The total amounts recorded from the beginning of actions related the geological event until the period ending December 31, 2024, are segregated into the following action fronts:
Slide 44: Support for relocation and compensation
a) Support for relocation and compensation: Refers to initiatives to support relocation and compensation of the residents, business and real state owners of properties located in the Civil Defense Map (version 4) updated in December 2020, including establishments that requires special measures for t
Slide 45: Income Statement consolidated
Income Statement (R$ n 2024 2023 Change CONSOLIDATED (A) (B) (A)/(B) Gross Revenue 90,080 81,638 10% Net Revenue 77,411 70,568 —-10% Cost of Good Sold (71,414) (67,548) 6% Gross Profit 5,997 3,020 99% Selling and Distribution Expenses (1,991) (1,916) 4% ‘Loss for impairment of accounts receivable an
Slide 46: Consolidated balance sheet
Dec/24 ecl23 Change ASSETS (RS milion) (a) @) ve) Current ‘3703737441 “16 ‘Cash and Cash Equivalents 14906 —~«18,187 a Marketable Secrtis/ Held for Trading 1785 4955 61% ‘counts Recevable 352 2810 22% Inventories 1361252 % Recovereb Tater 132 14st 6% Prepaid expenses 782 238 om Derwetives a 7 7% Oth
Slide 47: Consolidated Cash Flow
Consolidated Cash Flow 2024 = 2023 Change RS million @) (8) __ (ays) Profit (Loss) Before Income Tax and Social Contribution (47,734) (6,192) 18696 ‘Adjust for Result Restatement Depreciation and Amortization 4950 5,208 5% Equity Result 2 na Interest, Monetary and Exchange Variation, Net 17,555 2,68
Slide 48: Income Statement Braskem Idesa
Income Statement (R$ 2024 2023 Change BRASKEM IDESA. fA) (8) (a)/(B) ‘Net Revenue 5,247 4,455 18% Cost of Products Sold (4,574) 5% Gross Profit 673 683% ‘Selling and Distribution (232) 19% (Loss) reversals for impairment of accounts receivable (2) 100% General and Administrative (331) -16% Other Inc
Slide 49: Braskem Idesa balance sheet
ASSETS (R$ million) Declas pelea coe « @) ite) Current 3,630, 3,525, 3% Cash and Cash Equivalents 1,720 1,562 (10% ‘Accounts Receivable 174 45% Se 4,004 5% Recoverable Taxes 592 (10% Other 140 49% Non Current 19,605 19% ‘Taxes Recoverable 208 32% Deferred Income Tax and Social Contribution 1,841 na.
Slide 50: Forward-looking statements
This report on Form 6-K may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are statements that are not historical facts, and are based on our management’s current view and estimates of future economic and other circumst