Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Corporate Update (February 2021)
44 slides from Braskem's corporate update, Feb 2, 2021
Slide 1: Case Maceió
CASE MACEIO FEBRUARY 01, 2021 >) Braskem
Slide 2: Disclaimer on Forward-Looking Statements
DISCLAIMER ON FORWARD- LOOKING STATEMENTS This presentation includes forward-looking statements that reflect predictions and expectations of Braskem’s management as to future events. The terms “anticipate,” “believe,” “expect,” “foresee,” “intend,” “plan,” “estimate,” “project,” “aim” and similar te
Slide 3: Agenda
AGENDA > Introduction Marcelo Cerqueira (VP of Manufacturing Brazil & Global Industrial Operations) Braskem's Actions Thiago Fontana Gemignani (Case Maceié Leadership Team) Legal Front Filipe Alves Tavares (Case Maceié Legal) Vinyls Operation Almir Viana Cotias Filho (Vinyls Leader) Financial Impact
Slide 4: Introduction
Introduction Marcelo Cerqueira (VP of Manufacturing Brazil & Global Industrial Operations) > ) Braskem PUBLIC
Slide 5: Braskem in Alagoas: Long presence and commitment to the State
Braskem in Alagoas: Long presence and commitment to the State Introduction General informatior Integrated Industrial Operation * Start of operations: 1975! (through mergers and acquisitions) + Assets: two plants in Alagoas: (i) Chlor-alkali, in Maceié and (ii) PVC, in Marechal Deodoro + Braskem's co
Slide 6: General characteristics about the salt extraction process
General characteristics about the salt extraction process Salt Extraction Process * Process: Rock salt mining by underground dissolution Cemented + Number of wells: 35 (vertical and directional wells) coating Protection + Depth: 900 to 1,200 meters fluid + Licensing: with ANM' and IMA2, according to
Slide 7: Geological event in Alagoas: an earthquake occurred in March 2018
Geological event in Alagoas: an earthquake occurred in the region in March 2018 Geological Phenomenon in Maceié + In March 2018, an earthquake is recorded in some neighborhoods of Maceié, capital of the state of Alagoas + Since then, Braskem has adopted a responsible, transparent and active posture,
Slide 8: Since the recorded earthquake, Braskem has been implementing the mine closure plan
Since the recorded earthquake, Braskem has been implementing the mine closure plan and the actions defined with the authorities Eee ED a + Earthquake is registered | | + Hiring of independent + Agreement signed with DPE, MPF, DPU and MPE', which establishes actions for in some neighborhoods geologic
Slide 9: Braskem's actions remain focused on safety of residents and understanding the phenomenon
Braskem's actions remains focused on the safety of the region's residents and understanding the geological phenomenon Focus of Action SAFETY OF PEOPLE UNDERSTANDING OF THE GEOLOGICAL PHENOMENON Understanding of the geological phenomenon and possible surface effects Removal of residents from risk are
Slide 10: Braskem's work fronts in the scope of the geological phenomenon in Maceió
Braskem's work fronts in the scope of the geological phenomenon in Maceid ae Work LEGAL FRONT TECHNICAL FRONT OPERATIONAL FRONT + Reduction of exposure inthe context + Conducting studies to understand + Return to operation of Chlor-alkali of the geological event in Alagoas the phenomenon for directi
Slide 11: Braskem's Actions
Braskem's Actions Thiago Fontana Gemignani (Case Maceié Leadership Team) > ) Braskem PUBLIC
Slide 12: Acting fronts due to Braskem's knowledge of the geological event
Due to Braskem's knowledge of the geological event, the Company has been working on the following acting fronts Actions ° Relocation and Compensation Support for relocation and compensation of residents and large structures located in the areas of risk, protection and monitoring t ) Closing and Moni
Slide 13: The relocation areas in Pinheiro, Mutange, Bebedouro and Bom Parto
The relocation areas are located in the neighborhoods of Pinheiro, Mutange, Bebedouro and Bom Parto and comprise the protection area and different zones (1) 2)3)4)5 > iS a @ mroecion Aes @ 2a .3,cm00-snce04 Highlights eae. aeons + Risk Evaluation Map represents a comprehensive and resh-oecco conserv
Slide 14: Interface dimensions with residents of areas under the PCF agreement
Interface dimensions with residents of areas object of the PCF’ agreement (1) 2) 3) 4) 58) THE FINANCIAL COMPENSATION AND SUPPORT FOR RELOCATION PROGRAM HAS TWO DIMENSIONS OF INTERFACE WITH THE RESIDENTS OF THE AREAS OBJECT OF THE AGREEMENT Relocation Support Financial Compensation + Availability of
Slide 15: By end of 2020, PCF accounted for ~9,200 relocated families
By the end of 2020, the PCF' accounted for ~9,200 relocated families and ~99.7% status on of acceptance index for the proposals submitted 12/31/2020 @»: Ve) ‘at isl nO Relocation and Compensation: Achievements in 2020 ~9,200 ~3,450 “99.7% Relocated Families Financial Compensation Acceptance Index fo
Slide 16: Considerations of the Relocation and Compensation Front
Considerations of the Relocation and Compensation Front nd Compensation: Consid (1) 2) 3) 4) 5) = Provisioned amounts’ cover all areas of relocation and monitoring currently appointed by the Civil Defense, including regions indicated by specialized and independent technical studies hired by the Comp
Slide 17: Planning the final closure of the 35 salt wells
With the announcement of the definitive closure of salt extraction, Braskem started planning the final closure of the 35 wells located in the neighborhoods of Maceié e y YO] PLAN FOR CLOSING AND MONITORING OF THE SALT WELLS + Based on the findings of sonar, geomechanics studies and recommendations f
Slide 18: Clarifications on the Letter from the National Mining Agency
Closing and Mi Clarifications on the Letter from the National Mining Agency foring of Salt Wells: 10 3) 4) 5) J POY ANM(' Letter: Measures for the closure of the salt extraction activities in the state of Maceid ANM' Letter * Braskem became aware of a letter from the National Mining Agency regarding
Slide 19: Considerations of the Closing and Monitoring of Salt Wells Front
Considerations of the Closing and Monitoring of Salt Wells Front rm 2 ) 2) 4) s) = The Company already presented to ANM' a plan for stabilization and monitoring of all its 35 salt extraction wells, which was defined based on recommendations from independent institutions and nationally and internatio
Slide 20: Socio-urbanistic measures in the affected neighborhoods
Braskem is also adopting socio-urbanistic measures in the affected neighborhoods banistic Mk SOCIO-URBANISTIC MEASURES Actions of socio-urbanistic nature already started in 2020 with demolition, security and janitorial services in relocated areas As of the December/2020 agreement at Socio- environme
Slide 21: Considerations of the Socio-Urbanistic Measures Front
Considerations of the Socio-Urbanistic Measures Front Urbanistic 1) 2) = The provisioned amount' of R$ 1.58 Bi is a maximum cap agreed in the Social and Environmental PCA settlement, which includes the resources that will be available for actions in the relocated areas, urban mobility actions, socia
Slide 22: Considerations of the environmental study in progress
Considerations of the environmental study in progress 1) 2) 3) 5) = According to the settlement in the Social and Environmental PCA executed in December/2020, an environmental study was hired with the objective of verifying whether the salt well extraction activities created any environmental impact
Slide 23: Additional measures adopted in the neighborhoods of Maceió
Examples of additional measures adopted by the Company in the neighborhoods of Maceié aA + Actions related to the Technical Cooperation Instruments signed with Civil Defense + Hiring of external advisors to support the execution of the relocation and compensation action for residents MAIN ADDITIONAL
Slide 24: Four Cooperation Terms with City Hall of Maceió
Braskem's priority is the safety of people; so the company signed four Cooperation Terms with City Hall of Maceié Additional Measures: Cooperation Terms 1st Cooperation Term April 2019 + Installation of meteorological equipment and DGPS* + Inspection of properties + Drainage works and street paving
Slide 25: Residents' Center to serve PCF residents
Braskem created a robust structure to the Residents’ Center litional Measures: Residents’ Cente 1)2)3 cor 5) } y Residents’ Center erve the residents of the PCF', with emphasis on + The service to residents at PCF" includes more than 400 professionals, including field teams, facilitators, social tec
Slide 26: Additional Measures: Animal Care Program
Examples of additional measures adopted by the Company in the neighborhoods of Maceié Additional Measures: Animal Care Program Veterinarians treat abandoned animals In partnership with Ufal and FUNDEPES, Braskem created a program that contemplates the rescue, health treatment and improvement of anim
Slide 27: Considerations of the Additional Measures Front
Considerations of the Additional Measures Front 2398 = The expected spending’ in additional measures were dimensioned aligned with the action plan presented on the other acting fronts of Case Maceié = Priority of the Company to continue implementing the ives of the Cooperation Terms signed with the
Slide 28: Legal Front
Legal Front Filipe Alves Tavares (Case Maceié Legal) > ) Braskem PUBLIC
Slide 29: Main lawsuits filed against the Company
Main lawsuits filed against the Company in the context of the geological event Main ta uits filed against the Company C) i] J ° Reparation for Reparation for Social-environmental Investors Workers Residents Reparation (Class Action) State and Federal Prosecution and Public Defenders Offices — uliies
Slide 30: Reparation for Workers: action terminated
After Feb/20 agreement, the MPT agreed with the termination of the public-interest civil action of the Alagoas State Labor Prosecution Office Legal Front Legal Action: Reparation for Workers @»)»)4 Status: Terminated Object: Author(s): + Reparation of workers affected by the geological phenomenon -
Slide 31: Agreement for the Compensation of Residents
In Dec/20, the Company entered into an agreement for the Compensation of Residents, representing an important advance related to the geological event of Alagoas Legal Front 1)@:)*) Legal Action: _ Reparation for Residents Status: Terminated Object: Author(s): + Compensation to residents of neighborh
Slide 32: Agreement for Social-environmental Reparation
In Dec/20, the Company also entered into an agreement for the Social-environmental Reparation 1) 2)@ +) Legal Action: Social-environmental Reparation Status: Terminated Object: Author(s): + Reparation of socio-environmental damages related to the geological phenomenon- _—*_ Federal Prosecution Offic
Slide 33: Putative class action by investors
Braskem became aware of a putative class action which is in the initial stage 130 1) 2)3) Legal Action: Investors (Class Action) Status: Ongoing 2 Object: Author(s): + Reparation for alleged losses to Braskem's ADR holders due to alleged omissions or + Class of investors false statements made in rel
Slide 34: Vinyls Operation
Vinyls Operation Almir Viana Cotias Filho (Vinyls Leader) > ) Braskem PUBLIC
Slide 35: A relevant portion of Braskem's Vinyls operation is located in Alagoas
A relevant portion of Braskem's Vinyls operation is located in Alagoas Vinyls Oper ALAGOAS Production Capacity (kt/year) * PVC: 460 * Caustic Soda: 460 Braskem is in the commissioning * Chlorine: 400 phase of the Chlor-alkali plant in i, Maceié, expected to be concluded in + EDC':520 aGeEh BAHIA Pro
Slide 36: Resumption of Chlor-alkali operation and integrated Vinyls model
With the resumption of the Chlor-alkali operation in Alagoas, Braskem will return to operating with an integrated business model in Vinyls ss Model Temporary Business Model New Integrated Business Model (2019-2020) (2021) Imported 5 Caustic eS Soda — Hectricty Chlorine Imported a pve To honor the se
Slide 37: Financial Impact
Financial Impact Pedro Freitas (CFO) > ) Braskem PUBLIC
Slide 38: Advances in all work fronts in 2020
In 2020, Braskem presented important advances in all work fronts within the scope of the geological phenomenon in Maceié k Fronts - Advances in 2020 Jan/2020 vs. Jan/2021 + Public-interest Civil Actions (PCAs) unresolved: (i) workers, ‘+ Public-Interest Civil Actions (PCAs) terminated: (i) workers,
Slide 39: Preliminary estimate of provisions ~R$8.8 billion in 4Q20
The Company's preliminary estimate is that the provisions related to the geological event in Alagoas is ~R$8.8 billion in 4Q20' Financial Impact - Estimated Provision 4Q20" {R$ Billion) 0.8 8.8 16 1.2 5.2 Relocationand —Closingand = Socio-Urbanistic Additional Compensation Monitoring Measures Measur
Slide 40: Resources to fund the Case Maceió
Considering the resources that can be obtained through non-operating / recurring events + cash, Braskem has sufficient resources to fund the Case Maceié Potential non-operating / recurring events (R$ Billion) Ce es + Value of ~US$0.3 billion, It will be disbursed over the imonetined’ or, “RS17 billi
Slide 41: 2021 non-operating resources and disbursement schedule
For 2021, the Company estimates that non-operating / recurring resources could be in the same proportion to the disbursement of Case Maceio in the year Financial impa Disbursement Schedule’ Potential non-operating / recurring events - 2021 {RS Billion) (RS Billion) * Value of ~US$0.3 billion, Expect
Slide 42: 2021 Priorities
2021 Priorities Marcelo Cerqueira (VP of Manufacturing Brazil & Global Industrial Operations) > ) Braskem PUBLIC
Slide 43: Our priorities for 2021 in Alagoas
Our priorities for 2021 in Alagoas 2021 Priorities ° ‘Source: Braskem. Note (2): ANM: National Mining agency. PUBLIC Ensure the safety of people in the neighborhoods affected by the geological phenomenon Continue with the advances of the Financial Compensation and Support for Relocation Program (PCF
Slide 44: Forward-looking statements notice
This presentation contains 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 circumstances, in