Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q1 2024 Earnings Presentation
53 slides from Braskem's earnings presentation, May 9, 2024
Slide 1: Earnings Release 1Q24
Slide 2: Recurring EBITDA and Cash position highlights
(@) Recurring EBITDA © Cash position Higher than in Ensuring coverage of US$230 million 4023 (49%) and US$3.3 billion debt maturities over Around R$1,140 million 1023 (+12%) the next 69 months nacationfataat Normalization of green Higher than in 4023 ethylene supply after USS196 million (+US$129MM)
Slide 3: Main Operational Indicators
Main Operational Indicators O B) C ONG ONG Brazil Utilization Rate Ethylene (%) 74% 66% 77% 8pp. “3 pp. Sales Volume of Main Chemicals (kton) 663 559 694 19% 5% ‘Sales Volume of Main Chemicals Exports (kton) 74 81 78 9% 5% ‘Sales Volume of Resins (kton) 839 785 884 T% 5% Sales Volume of Resins Expor
Slide 4: International References, Prices and Spreads
1923 Chg. Chg. (©) (a)/(B)_(A)/(C) International References? (US$/ton) Prices Brent (US$/bbl) 3 84 81 1% 2% Natural Gas (USS/MMBtu) 2 3 3 20% — -17% ‘Naphtha or 636 695, 6% -3% Ethane 143 169 185 15% -23% Propane 439 350 428 26% 3% Resins (i) 967 897 1,006 8% “4% PEUS 1,019 912 1,025 12% “1% PP Asia
Slide 5: Average utilization rate of petrochemical crackers
b) Average utilization rate of petrochemical crackers: increase compared to 4Q23 (+8 p.p.) explained by (i) resumption of operations at the Bahia petrochemical plant after a scheduled maintenance shutdown occurred in 4Q23; and (ii) higher availability of feedstock at the petrochemical plant in Rio G
Slide 6: Resin sales volume
c) Resin sales volume: in the Brazilian market, the increase in resin sales volume compared to 4Q23 (+7%) is mainly explained by the higher demand for PE and PP due to the movement of restocking in the chain. In relation to 1Q23, the reduction (-5%) is mainly explained by the lower volume of resin s
Slide 7: The exports in 1Q24
The exports in 1Q24 were lower when compared to 4Q23 (-8%) and 1Q23 (-10%), mainly explained by the prioritization of service to the Brazilian market.
Slide 8: Sales Volume of Resins Exports, Brazil
Sales Volume of Resins Exports (kton) | Brazil 10% 214 210 193 4923 BB Exports
Slide 9: Main chemicals exports
Exports were lower (-9%) compared to 4Q23 and 1Q23 (-5%), mainly explained by (i) lower sales volume of toluene, due to better opportunities in the Brazilian market; and (ii) prioritizing service to the Brazilian gasoline market.
Slide 10: Main chemicals definition
3 The following are considered the main chemicals: ethylene, propylene, butadiene, cumene, gasoline, benzene, toluene and paraxylene due to the representation of these products in net revenue in this segment.
Slide 11: Geological event in Alagoas provision and progress
The amounts included in the accounting provision for the geological event in Alagoas, until March 31, 2024, can be segregated between the following areas of activity and their respective net balances of accounting provision: (a) support in reallocation and compensation, R$ 1.3 billion; (b) actions t
Slide 12: Brazil: Net Revenue
A) Net Revenue: increase compared to 4Q23 in Dollars (+9%) and in Reais (+9%), mainly explained by (i) the increase of 12% and 5% in the quarter's average price of PE and PP, respectively; (ii) the increase of 104 thousand tons, or 19%, in the sales volume of main chemicals in the Brazilian market;
Slide 13: Sales by Economic Activity, Brazil
‘Sales by Economic Activity PE | Beal Sles by Economic Activity P | Bran Sales by Economic Activity PVE | raz 1923 & 3 iS e S ia am 3 194 1923 we 1924 1933 ro i rood Motes Wi construction I Astomotive TM rnsustrat Ml coumetica Pharmaceutical Consumer goods ill Texte Sector i retaitBusiness. infrastr
Slide 14: SG&A expenses, Recurring EBITDA and Renewables overview
[4] C) SG&A EXPENSES: reduction in Dollars (-12%) and in Reais (-11%) compared to 4Q23, mainly due to lower marketing expenses and third-party expenses. Compared to 1Q23, the increase in Dollars (+5%) is mainly explained by the appreciation of the average Real against the Dollar in the period, of 5%
Slide 15: Green PE sales volume
b) Sales volume Green PE (I’m green TM biobased): decrease compared to 4Q23 (-8%), mainly due to seasonality during the Chinese New Year. Compared to 1Q23, the increase in sales volume (+22%), is due to the higher availability of product for sale given the return of operations after the scheduled ma
Slide 16: Sales of green PE
Sales (kton) of green PE Err a=] 9 = 45 37 1923 4923, 1924 I Green PE Green PE Sales Volume per Region (%) 1023 4023 Ml Europe ll Brazil south America Wh Asie Ml North america
Slide 17: United States & Europe
5.2 UNITED STATES & EUROPE Recurring EBITDA was US$69 million (R$343 million), 20% lower than 4Q23 and 30% lower than 1Q23, representing 22% of the consolidated Recurrent EBITDA of the Company's segments in Dollar in the quarter. This reduction is mainly explained by the lower sales volume available
Slide 18: Average utilization rate of PP plants
b) Average utilization rate of PP plants: decrease compared to 4Q23 (-6 p.p.) and 1Q23 (-5 p.p.) mainly explained by the unscheduled shutdown at a plant in the United States, lasting around a month between January and February. The plant production was normalized in February.
Slide 19: PP sales volume
c) PP sales volume: compared to 4Q23, sales volume remained in line (-1%). In relation to 1Q23, the decrease (-2%) is mainly explained by the lower availability of product for sale in the United States due to the unscheduled shutdown in the region.
Slide 20: Sales Volume, US & Europe
Sales Volume (kton) | US & Europe a —e r “1% 518 de 4Q23 1924 (BB PP US.and Europe
Slide 21: US & Europe: Net Revenue and COGS
A) Net Revenue : compared to 4Q23, higher in Dollars (+15%) and in Reais (+15%), mainly due to the increase in the average price of the international PP reference in the United States by 13% in the quarter. In relation to 1Q23, it was higher in Dollars (+10%) and in Reais (+5%), mainly explained by
Slide 22: SG&A, Recurring EBITDA and Mexico
C) SG&A EXPENSES : in Dollars, a drop compared to 4Q23 (-16%) due to lower expenses with consultancies and third-party services. In relation to 1Q23, the increase in Dollars (+4%) is explained by higher expenses with logistics, storage and third-party services. D) Recurring EBITDA: represented 22% o
Slide 23: Average utilization rate of PE plants
b) Average utilization rate of PE plants: in line with 4Q23 (-1 p.p.), due to the increase in the volume of ethane imported through the Fast Track solution, which was offset by the lower supply of ethane by PEMEX, but in line with the contractual average of 30 thousand barrels per day. Increase comp
Slide 24: PE sales volume
c) PE sales volume sales volume was higher when compared to 4Q23 (+17%), mainly explained by the rebuilding of PE stocks and seasonality observed in 4Q23. In relation to 1Q23, the increase (+6%) is mainly explained by the greater availability of product for sale in the period.
Slide 25: Sales Volume, Mexico
‘Sales Volume (kton) | Mexico 78
Slide 26: Mexico: Net Revenue
A) Net Revenue: increase in dollars (+15%) and in reais (+15%) in relation to 4Q23, mainly due to (i) the increase of 31 thousand tons, or 17%, in PE sales volume during the period; and (ii) the 14% increase in the price of the international PE reference in the quarter. In relation to 1Q23, the drop
Slide 27: Mexico: Cost of Goods Sold
B) Cost of Goods Sold (COGS): increase compared to 4Q23, mainly due to (i) an increase of 31 thousand tons, or 17%, in the volume of PE sales in the period. Compared to 1Q23, the decrease in dollars (-7%) and in reais (-12%) is mainly explained by the reduction in the price of ethane on the internat
Slide 28: Mexico: SG&A expenses
C) SG&A EXPENSES: reduction in Dollars (-55%) and in Reais (-54%) compared to 4Q23, mainly due to commercial expenses related to the ethane resale operation in the international market during 4Q23. Compared to 1Q23, the increase in Dollars (+52%) and in Reais (+46%) is explained, mainly, by higher e
Slide 29: Ethane Import Terminal
5.3.3.1 ETHANE IMPORT TERMINAL In 2021, Braskem Idesa approved and began the project to build the ethane import terminal in Mexico, with a capacity of up to 80 thousand barrels of ethane per day, which will allow Braskem Idesa to operate at up to 100% of its capacity of production. In the same year,
Slide 30: Corporate Credit Rating, Braskem Idesa
Agency Rating Outlook Date FITCH B+ Negative 12/20/2023 S&P B Negative 07/07/2023 Ratings CORPORATE CREDIT RATING - BRASKEM IDESA
Slide 31: Income Statement
Income Statement. 1924 1923 cha. R$ millon @) © ANB) AO) ‘Gross Revenue 20,917 2,389 8% “7% Net Revenue 17,920 16,691 19,446 7% -8% Cost of Good Sold (16,709) (45,683) (18,461) 7% 9% Gross Profit 4211 1,008 ‘985 20% 23% ‘selling and Distribution Expenses (459) (526) (477) 13% “4% (Loss) reversals fo
Slide 32: Net Revenue, Consolidated
Net Revenue (R§ million) | Consolidated om ga. = = E ' 1923 4Q23 1924 Mi Brazil Ml Green PE+ETBE [lll Mexico Il Exports? Ml USA and Europe "Does not consider feedstock resale and others *Considers only exports from Brad
Slide 33: Other Revenue (Expense), Net
6.3 OTHER REVENUE (EXPENSE), NET The Company recorded net revenue of R$14 million in 1Q24, mainly due to the tax regularization carried out through the Agreement Paulista [7] program during the quarter, which impacted other revenues by around R$98 million.
Slide 34: Paulista Agreement note
[7] In February 2024, the São Paulo State Attorney General's Office ("PGE") published Resolution 6/24 regulating the "Paulista Agreement", a program created with the enactment of State Law No. 17,843 that allows the settlement of ICMS debts with discounts on interest, fines, and legal fees. In March
Slide 35: Consolidated result note
[8] Braskem’s consolidated result corresponds to the sum of the results in Brazil, United States & Europe and Mexico, less eliminations and reclassifications of purchases and sales among the segments reported by the Company.
Slide 36: Financial result
Financial expenses: reduction (-13%) compared to 4Q23 mainly due to the positive effect of tax regularization through the Paulista Agreement 7 . The increase compared to 1Q23 (+4%) is mainly explained by higher interest expenses due to the increase in the gross debt balance in the period. Financial
Slide 37: Net income note
[9] Based on net income (loss) attributable to the shareholders of the Company
Slide 38: Global Growth Strategy
6.7.1 GLOBAL GROWTH STRATEGY Aligned with the Company's Corporate Growth Strategy, in the quarter, Braskem remained focused on the development of various projects related to its growth avenues, highlighting the following: 1. Traditional Business: a. Construction of an Ethane Import Terminal in Mexic
Slide 39: Debt Maturity Profile and Rating
6.9 DEBT MATURITY PROFILE AND RATING On March 31, 2024, the balance of gross corporate debt was US$8.5 billion, with 95% of maturities concentrated in the long term and 5% in the short term. In relation to net debt, the balance at the end of March 2024 was US$5.3 billion. Corporate debt in foreign c
Slide 40: Liquidity position
The liquidity position of US$3.3 billion, in March 2024, is sufficient to cover the payment of all debts coming due in the next 69 months, not considering the international stand-by credit facility of US$1.0 billion available through 2026.
Slide 41: Ratings and Stock Performance
Agency Rating Outlook Date FITCH BB+ Rating Watch Negative 12/14/2023 S&P BB+ Stable 02/26/2024 Agency Rating Outlook Date FITCH AAA(bra) Rating Watch Negative 12/14/2023 S&P brAAA Stable 02/26/2024 Ratings CORPORATE CREDIT RATING - GLOBAL SCALE CORPORATE CREDIT RATING - NATIONAL SCALE 7.CAPITAL MAR
Slide 42: Performance of Corporate Debt Securities
7.2 PERFORMANCE OF CORPORATE DEBT SECURITIES
Slide 43: Corporate debt securities table
Var. (a)- (8) Var. (ORG) Vat ()-(0) 1750 4,500.0 850.0 1,000.0 573.0 750.0 600.0 Jan/28 Jen/30 Jan/31 Fev/33 suyat Jan/50 Jan/81 45% 45% 35% 73% 71% 59% 35% 77% 75% 73% 79% 82% 8.0% 83% 10.1% 95% 10.0% 101% 9.9% 9.9% 17.7% N/A 8.0% 81% 11.2% 5.6% 0.6% 0.9% 2.2% 27%
Slide 44: Alagoas provision action fronts
The current provision can be broken down into the following action fronts: a. Support for relocating and compensation: Refers to actions to support for relocating and compensating for the residents, business and real state owners of properties located in the Civil Defense Map (version 4) updated in
Slide 45: Consolidated Recurring EBITDA Calculation
8.4 CONSOLIDATED RECURRING EBITDA CALCULATION
Slide 46: Recurring EBITDA Statement
Recurring EBITDA Statement (R$ million) 1924 4923-1923 Change ~—Change_ ‘CONSOLIDATED. @) (8) 8) AKO ‘Net Profit (1,390) (4,751) 242 -21%. na. Income Tax / Social Contribution (681) (78) (98) 595% Financial Result 2,030 798 352 477% Depreciation, amortization and depletion 4,229 1,386 41,230 0% Cost
Slide 47: Financial Overview by segment
‘nancial Overdew (Rf millon) CONSOLIDATED 1024 NetRevenue COGS. Grom Prom SOBA St ame GNSS) et (9) 02 308 US and Euope saan) a aso, 253 30 ics 1335s) Ey (00) a) a Segments Tot iy @auy) kao (03 Ea 506 Doe Sagres 3 7) 5 wy w 2 = 2 Cperate Unt 495) @ (a) 00) Elminations and Reclsefeatons? am 72 cy a 3
Slide 48: Indicators and Company Valuation
Indicators 4923 1923 (6) © (Ay) (ANC) Recurring EBITDA 2b 205 9% 12% EBITDA Margin? 6% S% Opp. Ipp. ‘SGBLA/Net Revenue (%) 6% = Epp. Ipp. Adjusted Net Debt Adjusted Net Debt/Recuring EBITDA (LTM)> Recurring EBITDA (LTM)/Interest Paid (TM) Company Valuation Share Price (Final)* z : r Shares Outstandi
Slide 49: Consolidated Balance Sheet
Mar/24 Dec/23. Change @ (8) ae) Current 37,453. 37,441 0% (Cash and Cash Equivalents 14,215 14,187 036 ‘Marketable Securtes/Held for Trading 3,960 4,956 ‘Accounts Recevable 3371 2910 ASSETS (R§ million) Inventories 13,256 12,532 Recoverable Taxes 1,280 1461 Prepaid expenses 531 28 Derivatives 4s 137
Slide 50: Cash Flow Statement
1924 = 4923-1923. Change Change (O} @ O _@e) WO Profit (Loss) Before Income Tax and Social Contribution (071) (4827) 14a 13% na. ‘Adjust for Result Restatement Depreciation and Amortization 1228 4386 4,230 11% 8 Equity Result 5 1 3) 92% na. Interest, Monetary and Exchange Variation, Net 2190 642 12
Slide 51: Braskem Idesa Balance Sheet
8.10 BRASKEM IDESA BALANCE SHEET
Slide 52: Braskem Idesa Balance Sheet
Mar/24 ASSETS (R$ million) (a) Current 3,862 Cash and Cash Equivalents 1,784 Accounts Receivable 225 Inventories 1,080 Recoverable Taxes 500 Derivatives 4 Other 269 ‘Non Current 17247 ‘Taxes Recoverable 240 Deferred Income Tax and Social Contribution 76 Other 65 Property, Plant and Equipament 15,757
Slide 53: 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