Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q4 2024 Earnings Presentation
65 slides from Braskem's earnings presentation, Feb 27, 2025
Slide 1: o 72) 8) x D Oe Y) D fe = Ww = | E
o 72) 8) x D Oe Y) D 3 fe = 5 Ww = | E 2 m7 fej = a
Slide 2: Update on the defense agenda of the Brazilian Chemical Industry
=D OID Us$102 MM USS$2.4 bi USS 204 MM 76th vs. 3024 Coverage of debt 5296s, 4023 maturities: 47 months Update on the defense agenda of the Brazilian Chemical Industr; > In January 2025, the Brazilian Association of the Chemical Industry (Abiquim) announced projects to expand the production capacity
Slide 3: Key operating and financial indicators
Ss 424 gs 4023, hg. cha. 2024 2023 Chg. a) B) G OVOMEEONE 0) ) oie Seat Usizaton Rate Ethylene ($4) 70% 73% 6% Spe Aw. 72% 71% 1 pe. Sales Volume of Main Chamical (ton) 586 ns 358 ee 2 2.555 2407 2 Sale Volume of Main Chemicals Exports (kton) 52 55 at 6% 36% 270 34-24% Sale Volume of Resin (iton) 81
Slide 4: Prices and spreads
4Q24 3924 hag. 20242023, “ (6) wo) o © Brent (USS/B) 75 20 oH -% Bt 32% Natural Gas (US¢/MMBtu) 246 2.20274 12% 10% 222254 13% Prices Naphtha e757 5ST HD 2% Ethane 13 6 169 40% 3% Lt -23%, Propane 40938350 T% 1% 405 370 3% Resins (i) 924 1008897 -8% 3% 73930 5% PEUS 956 1091912 -12% 5% 1029944 9% PP
Slide 5: Operational overview: demand for resins
5.1.1 OPERATIONAL OVERVIEW a) Demand for resins in Brazil (PE, PP and PVC): lower than in 3Q24 (-6%), explained by (i) lower demand for PE, mainly from the food sector due to its higher inventory level; (ii) lower demand for PP, mainly from the hygiene and cleaning, and packaging sectors; and (iii)
Slide 6: Average utilization rate of petrochemical complexes
b) Average utilization rate of petrochemical complexes: reduction in relation to 3Q24 (-3 p.p.), mainly explained by (i) seasonality of the period; (ii) operational instability at the Rio Grande do Sul petrochemical complex caused by adjustments to its power grid; (iii) a scheduled maintenance shutd
Slide 7: Resin sales volume
c) Resin sales volume: in the Brazilian market, resin sales were lower (-7%) compared to 3Q24, mainly due to the lower demand for PE and PP explained by the seasonality of the period. Compared to 4Q23, the increase (+3%) is mainly explained by the higher sales volume of PE and PP due to the greater
Slide 8: Sales volume of resins
‘Sales Volume of Resins (kton) ‘Sales Volume of Resins (kton) | Annual =! es 859 3.382 3381 2025 Brazilian Market I Beazion Market 2028
Slide 9: Sales volume of main chemicals
d) Sales volume of main chemicals 1 : in the Brazilian market, main chemicals sales were lower than in 3Q24 (-4%) due to: (i) lower sales volume of gasoline and paraxylene, associated with lower availability of product for sale; and (ii) lower sales volume of benzene, due to reduced demand during th
Slide 10: Main chemicals exports
Exports were lower compared to 3Q24 (-6%) mainly due to the lower sales volume of gasoline and butadiene, as a result of prioritizing the Brazilian market. The reduction compared to 4Q23 (-36%) is mainly explained by the lower sales volume of gasoline and toluene, as a result of prioritizing the Bra
Slide 11: Main chemicals definition
1 Main chemicals refer to: ethylene, propylene, butadiene, cumene, gasoline, benzene, toluene and paraxylene, given these products’ share of net revenue in the segment.
Slide 12: Provision for salt cavities closure
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, an increase was recorded in the provision for filling the 11 pressurized cavities with solid material, currently belonging to the Plugging
Slide 13: Net revenue
A) Net Revenue: lower in U.S. dollar compared to 3Q24 (-10%), mainly due to: (i) a reduction of 59 thousand tons, or 7%, in the volume of resin sales in the Brazilian market; (ii) a 12% decrease in the international price reference of the main chemicals; (iii) a reduction of 43 thousand tons, or 4%,
Slide 14: Resin sales volume per region
Resin Sales Volume per Region (%)* ‘Sales Volume per Region (%6) | Annual 2023 2028 3025 3024 4024 eet chine Ween chine Bi Mercomue North America europe Mothers TB ewope lowers [Asis and Ocean (ex-China) Penn
Slide 15: SG&A expenses and other revenue (expense)
C) SG&A Expenses: increase in U.S. dollar (+4%) compared to 3Q24, primarily due to higher expenses with contract terminations and third-party services. Compared to 4Q23, the reduction in U.S. dollar (-27%) and in Brazilian real (-13%) is mainly explained by; (i) the decrease in provisions for losses
Slide 16: Sales volume of Green PE
b) Sales volume of Green PE (I'm green TM biobased): increase compared to 3Q24 (+24%), mainly explained by the higher demand for Green PE in Europe and Asia. The increase compared to 4Q23 (+17%) is mainly explained by the greater availability of product for sale. The sales volume of Green PE in 4Q24
Slide 17: Financial overview: Green PE and ETBE
5.1.3.2 FINANCIAL OVERVIEW A) Net Sales Revenue of Green PE and ETBE 3 : increase compared to 3Q24 (+5%) and in line with 4Q23, mainly explained by the increase of about 11 thousand and 8 thousand tons, respectively, in the sales volume of Green PE, partially offset by the lower sales volume of ETBE
Slide 18: Green PE renewable feedstock
Product that uses renewable feedstock, ethanol in its composition
Slide 19: Operational overview: PP demand
5.2.1 OPERATIONAL OVERVIEW a) PP demand: PP demand in North America was lower (-6%) compared to 3Q24, mainly due to the seasonality of the period. Compared to 4Q23, demand in North America was higher (+6%), primarily due to improvements in the region's economic conditions compared to the same period
Slide 20: Average utilization rate of PP plants
b) Average utilization rate of PP plants: lower than in 3Q24 (-9 p.p.) and 4Q23 (-15 p.p.), mainly explained by: (i) the adjustment of the utilization rate in the United States due to lower demand in the region; and (ii) unscheduled maintenance shutdowns at plants in Europe.
Slide 21: PP sales volume
c) PP sales volume: lower compared to 3Q24 (-10%) and 4Q23 (-12%) mainly explained by; (i) the seasonality of the period resulting from the destocking process in the transformation chain; and (ii) lower product availability for sale in Europe, due to lower utilization rate.
Slide 22: Sales volume
Sales Volume (kton) Sales Volume (kton) | Annual 798 2110
Slide 23: Net revenue and COGS
A) Net Revenue : lower in U.S. dollar (-18%) and in Brazilian real (-14%), compared to 3Q24, mainly due to (i) a reduction of 52 thousand tons, or 10%, in the volume of PP sales; and (ii) a 13% decrease in the average international PP price references. Compared to 4Q23, the reduction in U.S. dollar
Slide 24: SG&A and recurring EBITDA
C) SG&A Expenses : increase in dollars (+16%) and in reais (+23%) compared to 3Q24 mainly due to expenses with terminations and project engineering expenses. Compared to 4Q23, the reduction in U.S. dollar (-2%) is mainly explained by lower expenses with consulting services. The increase in Brazilian
Slide 25: Average utilization rate of PE plants
b) Average utilization rate of PE plants: higher compared to 3Q24 (+3 p.p.), mainly due to: (i) the increased ethane supply by PEMEX, around 30 thousand barrels per day, in line with the minimum volume established in the contract; and (ii) the normalization of operations following a scheduled mainte
Slide 26: PE sales volume
c) PE sales volume: reduction compared to 3Q24 (-6%), mainly due to the seasonality of the period and the PE inventory replenishment process. In relation to 4Q23, the increase (+9%) is mainly explained by the buildup of inventories in 4Q23 following an unscheduled shutdown due to failures in the nat
Slide 27: Sales volume
‘Sales Volume (kton) Sales Volume (kton) | Annual 195 mre
Slide 28: Net revenue
A) Net Revenue: lower in U.S. dollar (-16%) and in Brazilian real (-12%) compared to 3Q24, mainly due to: (i) a reduction of 13 thousand tons, or 6%, in the PE sales volume; and (ii) a 15% reduction in the international PE price reference. The increase compared to 4Q23 (+7%) is mainly explained by:
Slide 29: Cost of goods sold
B) Cost of Goods Sold (COGS): reduction in U.S. dollar (-2%) compared to 3Q24, mainly explained by the reduction of 13 thousand tons, or 6%, in PE sales volume, partially offset by the impact in the international ethane reference price in relation to the previous quarter. In Brazilian real, the incr
Slide 30: COGS breakdown
cogs 424: cogs 2024* 4023, 3Q24 424 2023 thane Natural Gas Ml Other Variable Costs Ill Electric Energy | Deprec/Amort Ml Sales Freight Ill Fixed Costs? \enader accounting Hgures Zirces chercoyedtire, coals fuss, utes, omong others $ipeludes salar ard benefits
Slide 31: Investments in 2025
Investments in 2025 The investment planned by Braskem Idesa for 2025 is US$104 million (R$623 million), with US$23 million allocated to the completion of the construction of the ethane import terminal, financed through the Syndicated Project Finance Loan issued by the Terminal Química Puerto México
Slide 32: Investments table
Investments ee ncMnnES va Non-Corporates (Braskem Idesa) Mexico Operating 484 81 Strategic (ex-TOQPM) Total (ex-TOQPM) 484 81 TOPM 139 23 Total 623 104
Slide 33: Includes Value Added Tax (VAT)
Includes Value Added Tax (VAT).
Slide 34: Shareholder loan capitalization and rating
Agency Rating Outlook Date FITCH B+ Stable 12/13/2024 S&P B Negative 07/05/2024 Shareholder Loan Capitalization On October 16, 2024, the Company together with the Idesa Group, a non-controlling shareholder of Idesa, approved an increase in Braskem Idesa's capital through the capitalization of the pr
Slide 35: Income statement 2024
“Income Statement 2024 "29 millon ©) ‘Gross Revenue 16% 90080 NetRevenue rast (Cost of Good Sold (800) ass) ia) Gross Profit, 116 2240 ‘5997 ‘Sang and Dsebton Expenses ‘ss G99) (toss rere for Impatmant of acne ‘ * 108 (General an Admnsrave Expenses 75s) (oan) (2.838) iperses wth Reseach and Tececlog
Slide 36: Net revenue
‘Net Revenue (R$ million) | Annual | Consolidated? Net Revenue (R$ million) | Consol 2023 2024 4Q23 324 428 Mi brazil Ml Green PE+ETBE ll Mexico ME oraz Ml Green PE + ETBE [ll Mexico I Exports? Ml USA and Europe I Exports? Ml USA and Europé (Doss not consider feedstock ecsle and others oes not consd
Slide 37: Other income (expenses), net
6.3 OTHER INCOME (EXPENSES), NET As of December 31, 2024, the Company recorded a total net expense of R$1,596 million, higher than in 3Q24, mainly attributed by (i) the addition to the provision for the geological event in Alagoas due to updated cost estimates related to updates in the closure plan
Slide 38: Recurring EBITDA
6.4 RECURRING EBITDA 6 Braskem's Recurring EBITDA was US$102 million (R$557 million) in 4Q24, lower than in 3Q24 (-76%), mainly due to; (i) lower average spreads in the international market for Main Chemicals (-24%) and Resins (-12%) in Brazil, PE in Mexico (-21%) and PP in the United States and Eur
Slide 39: Consolidated financial result
6.5 CONSOLIDATED FINANCIAL RESULT
Slide 40: Financial expenses and income
Financial expenses: higher compared to 3Q24 (+36%) mainly explained by (i) higher interest expenses, due to the increase in gross debt with the raising of the US$850 million bond in October, partially offset by the prepayment of the hybrid bond in the amount of US$369 million, and the depreciation o
Slide 41: Net income (loss) and investments
6.6 NET INCOME (LOSS) In the quarter, the Company posted net loss of US$1.0 billion, or R$5.9 billion, mainly due to the impact of R$4.7 billion of negative exchange rate variation on the financial consolidated result. In the year, the Company registered net loss of US$2.2 billion, or R$12.1 billion
Slide 42: 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 43: Investments for 2025
Investments for 2025 The investment expected to be made throughout 2025 by Braskem (ex-Braskem Idesa and Ex-REIQ Investimentos) is US$404 million¹ (R$2.4 billion), around 39% lower than the historical average of the last 6 years (US$672 million). Considering the investments to be made through REIQ I
Slide 44: 2025 sustainable development investments
For 2025, investments related to the sustainable development macro goals will amount to US$142 million (R$851 million), accounting for 30% of corporate investments. These funds will be primarily allocated to projects focused on health and safety, sustainable innovation, and operational eco-efficienc
Slide 45: Cash flow
6.8 CASH FLOW The Company reported an operating cash generation of R$1.1 billion in 4Q24. This result is mainly explained by the positive variation in working capital, which was partially offset by the lower Recurring EBITDA in the period. During 4Q24, the positive variation in working capital is ma
Slide 46: Debt maturity profile and rating
6.9 DEBT MATURITY PROFILE AND RATING On December 31, 2024, the balance of corporate gross debt stood at U$8.6 billion, composed of 95% long-term maturities and 5% short-term maturities. At the end of the period, corporate debt in foreign currency accounted for 92% of the Company's total debt. As of
Slide 47: Cash position
The cash position of US$2.4 billion in December 2024 is sufficient to cover the payment of all debts coming due in the next 47 months, not considering the international stand-by credit facility of US$1.0 billion available through December 2026.
Slide 48: Debt profile
Debt Profile (USS million) 12/31/2024) Gad) 22% ms ws 10% — mm | a s oe oan = man szjsuj20re 2025 2028 2029 20: 2023 2023 onwards cash Mi Totalcash Hl Totaldobt Il Principal Ml Interest Ml Sustainability inked lon? Ml Standby * Does not consider the amount of US$! millon destined tothe Francia Compe
Slide 49: Rating and stock performance
Agency Rating Outlook Date FITCH BB+ Negative 10/07/2024 S&P BB+ Negative 10/07/2024 Agency Rating Outlook Date FITCH AAA(bra) Stable 10/07/2024 S&P brAAA Negative 10/07/2024 Rating CORPORATE CREDIT RATING - GLOBAL SCALE CORPORATE CREDIT RATING - NATIONAL SCALE 7. CAPITAL MARKETS 7.1 STOCK PERFORMAN
Slide 50: Stock performance
‘Stock Performance 160 20 0 Dee Jon Feb Mar Apr May Jun July Aug Sep Oc Nov Dec Tov — BRKMs — BRIO — BAK Source: Bloomberg
Slide 51: Performance of corporate debt securities
7.2 PERFORMANCE OF CORPORATE DEBT SECURITIES
Slide 52: Vai
Vai @)-(6) Var. (ORG) Var. ()-(0) 45% 45% 35% 73% 80% 71% 59% 35% 77% 84% 85% 85% a7% 39% 91% 35% 65% 7.0% 7.3% 74% NA 75% 79% 8.6% 10.1% 95% 10.0% 10.1% NA 99% 9.9% 7% 2.0% 01%
Slide 53: Resin sales by sector
Resin sales by sector (%) | Mexico segment
Slide 54: Updates about Alagoas
8.3 UPDATES ABOUT 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 hi
Slide 55: Amounts recorded for Alagoas action fronts
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 56: 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 57: Consolidated recurring EBITDA calculation
8.5 CONSOLIDATED RECURRING EBITDA CALCULATION
Slide 58: Recurring EBITDA by segment
8.6 RECURRING EBITDA BY SEGMENT
Slide 59: Financial overview
France Overview (f¢ illon) CONSOLIDATED 4904 NetRevense c06s rom mrome sean MHO"RY avemcr nd OPIN Racing oat Hes (825) (8) re 0 US ae pe ee) ron) = 2 aw oy Ne isan wa : a fo 2 a a a Gass) 79 ‘be sees oa 2 o ) ° 37 ‘note Unt : : ce 2) ) Stn nd Rein con eo 7 ‘2 = oa) 8) tease Tol as (oo) aaa) @_ Gs as
Slide 60: Company valuation and leverage
9. it we) ao) 5,289 5% ‘Adjusted Net Debl/Recuring EBITDA (LTM)> z B12 29% Recurring EBITDA (LTM)/Interest Paid (LTM) 124 -13% “Company Valuation Share Price (Final)* E E 45 Shares Outstanding (Milion)* 797 3,600 7,901 7597 6790 4% 16% 6276 5967 5289 5% 19% Braskem Idesa (75%) 1,625 1,630 1501 0% 3%
Slide 61: Assets and liabilities
ASSETS (R$ million) Dec/24 O) Dec/23. Change (8) ie) Current ‘37,037 ‘37,441 1% (Cash and Gach Equivalents 14,986 14,187 6% “Marketable Securities/Held for Trading 1,786 4,996 3,562 2910 22% 13,688 12,532 9% 1372 1461 6% 752 428 83% B 47% 788 “5% 37,037 37,441 -1% 64538. 54,300 19% 1,758 1,370 25% 2
Slide 62: Cash flow
4Q2 2023 oO © Profit (Loss) Before Income Tax and Social Contribution (6330) (1312) (1827) nana (47.734) (6.192) ‘Adjust fr Result Restatement Depreciation and Amortization cece re a ee. a eS a | EnuiyResut 2 co) 1 na 7% Et ees Interest, Monetary and Exchange Variation, Net est 86 2 27% 77% TSS 26 S
Slide 63: Braskem Idesa balance sheet
8.11 BRASKEM IDESA BALANCE SHEET
Slide 64: Braskem Idesa assets and liabilities
ASSETS (R$ million) Deci™s Decl23 ene «) ©) ee) Current 3,630, 3,525 3% ‘ash and Cash Equivalents 1,720 1,562 10% curs Hexen 174 120 15% Inventories 1,004 1,055 5% Recoverable Taxes 592 537, 10% Other 140 251 44% lion Gantt 19,605 16477 10% Taxes Recoverable 298 225 (32% Deferred Income Tax and Soci
Slide 65: Braskem Idesa cash flow
4Q23 Change Change Grange ve) ore) ‘Prof (Loss) Before Income Tax and Socal Contribution (5i2)_G567) 35% 21% “ajasonerts for Recocaion of oft (Loss) Depreciation and Amortization Ce ed ca nut Result ~ i 5 na ne {rmere, Monetary and Exchange Variation Net 599 388 sD wis DIS and COFD\S cds -exclaon of