Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q2 2022 Earnings Presentation
23 slides from Braskem's earnings presentation, Aug 12, 2022
Slide 1: Earnings Conference Call 2Q22
Braskem Polypropylene (PP) Plant in Paulínia, SP - Brazil EARNINGS CONFERENCE CALL 2Q22 AUGUST 11, 2022
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: Main highlights of the Company in 2Q22
Main highlights of the Company in 2Q22 Financial Highlights ESG Highlights 1 Financial Results: • Acquisition of equity interest in Wise, which has the capacity to mechanically recycle 25 kt/year, with the • Recurrent EBITDA of US$802 million and net cash generation R$ 2.4 billion¹, prospect of doub
Slide 4: Reduced exposure to Brazil through geographic diversification
In recent years, the Company has reduced its exposure to Brazil through geographic diversification and moved towards a more balanced feedstock profile Currently, about 40% of resin ... additionally, around 42% of Net ... and the Company has already production capacity is located Revenue is contribut
Slide 5: Highlights 2Q22 & 1H22 | Braskem Consolidated
Highlights 2Q22 & 1H22 | Braskem Consolidated Recurring EBITDA – 2Q22 & 1H22 Comments: (US$ million) -43% • In 2Q22, Recurring EBITDA was US$802 million, down 13% on 1Q22, mainly explained by: 1,776 3,042 11% 9% i. lower international spreads for PVC in Brazil and PP in Europe, though still above th
Slide 6: Highlights 2Q22 | Brazil
Highlights 2Q22 | Brazil Operational Financial Utilization Rate of Petrochemical Crackers Recurring EBITDA Bridge (%) (US$ million) -2 p.p. -11 p.p. Down vs. 1Q21, mainly 86% due to the scheduled 76% 74% maintenance shutdown -23 -4 at petrochemical -29 33 complex in RS 2Q21 1Q22 2Q22 Ethylene 477 45
Slide 7: Geological event in Alagoas (1/2) – Financial Update
Geological event in Alagoas (1/2) – Financial Update Total Amount of Provisions¹ Balance of Provisions in 2Q22 Disbursement Schedule (R$ billion) (R$ billion) (R$ billion) The total amount of provisions is R$12.9 billion, of ...In 2Q22, the balance of provisions related to the ...with approximately
Slide 8: Geological event in Alagoas (2/2) – Progress on Work Fronts
Geological event in Alagoas (2/2) – Progress on Work Fronts Relocation & Compensation - PCF¹ Closing & Monitoring of Wells Socio Urbanistic & Environmental Measures (Status as of July 31, 2022) (Status as of July 31, 2022) (Status as of July 31, 2022) Financial Compensation Proposals Submitted • Fil
Slide 9: Highlights 2Q22 | USA & Europe
Highlights 2Q22 | USA & Europe Operational Financial Utilization Rate of PP Plants Utilization of PP plants Recurring EBITDA Bridge (%) -9 p.p. (US$ million) In USA, down due to -7 p.p. 27 scheduled maintenance 98% 96% shutdowns and short -79 88% 89% 81% 79% unscheduled shutdowns -5 2Q21 1Q22 2Q22 U
Slide 10: Highlights 2Q22 | Mexico
Highlights 2Q22 | Mexico Operational Financial Capacity Utilization of PE plants Recurring EBITDA Bridge (%) (US$ million) -14 p.p. 80% Affected by the lower 67% ethane supply by PEMEX 58% and the unscheduled -23 shutdown caused by instability in power supply -16 -1 2Q21 1Q22 2Q22 PE sales 136 (kt)
Slide 11: Braskem Idesa agreement with Advario for Ethane Terminal in Mexico
Braskem Idesa signed agreement with Advario B.V for construction of Ethane Terminal in Mexico Information on partnership with Advario B.V Braskem Idesa’s feedstock supply • Advario is a company with expertise in (Kbpd) Pursuant to the amendment executed in 2021, BI has 1 Partner terminal constructio
Slide 12: 2Q22 cash flow of R$2.4 billion, 60% conversion of EBITDA
In 2Q22, the Company generated cash flow of R$2.4 billion, representing a conversion of 60% of EBITDA into cash Cash Flow (R$ million) – 2Q22 752 Represents a 3,927 -1,043 conversion of EBITDA to cash -355 -108 3,069 of around 60% -66 -39 -665 2,404 Recurring Working CAPEX Interest Paid IR/CSLL Paid
Slide 13: Transform for Value Program on pace to capture US$280 million/year
The Transform for Value (TFV) Program ended 2Q22 on pace to capture US$280 million/year¹ Transform for Value Program Overview – 2Q22 Comments: (US$ million/year) Represents ~93% of the • The program's pace of capture represents Company's target for 2022 mostly a direct impact on the company's Mexico
Slide 14: Maintenance of very long debt maturity profile
Maintenance of very long debt maturity profile Debt Profile (US$ million) Jun/30/22(1) Debt Indicators Strong liquidity position, with most liabilities due • Sufficient liquidity to cover liabilities coming in long term (53% after 2030) due in next 66 months¹ 2,862 • Average debt term of around 14.1
Slide 15: Solid credit metrics and low corporate leverage
Braskem continued to present solid credit metrics and low corporate leverage in quarter Adjusted Net Debt/Recurring EBITDA (LTM)¹ (US$ million) Corporate Leverage (Ex-Braskem Idesa) Adjusted Net Debt (ex-Braskem Idesa) Recurring EBITDA (LTM)² 1.80x 1.10x 0.83x 0.94x 1.00x 1.22x 4,936 4,522 4,109 4,8
Slide 16: ESG: Advancing the Circular Economy and recycling business
ESG: The Company continues to advance the implementation of the Circular Economy, especially in its recycling business, which is one of its main avenues for growth In 2018, Braskem made a commitment to the ... Additionally, the Company has made several Circular Economy and since then, sales of produ
Slide 17: ESG: Brazilian Paralympic Committee sponsorship renewed
ESG: Since 2015, Braskem has supported the Brazilian Paralympic Committee (BPC) and in early Aug/22 the Company renewed its sponsorship of Parathletics Information about sponsorship of the BPC • Four more years, until June/2026 1 Period • World Athletics Championships in Paris 2023 and 2 Competition
Slide 18: Sales of chemical products and diversified feedstock profile
Sales of chemical products are basically made possible mainly by naphtha cracking and represent a significant share of the Company's results Braskem has a diversified feedstock profile for …consequently, Braskem has a broad portfolio This enables the Company to capture ethylene production in compari
Slide 19: Petrochemical Scenario 2022 – PE and PP
Petrochemical Scenario 2022 – PE and PP US PE – Naphtha ARA Spread¹ US PE – Ethane US Spread¹ US PP – Propylene US Spread¹ ($/ton) ($/ton) ($/ton) 1,708 1,589 1,764 1,535 2,833 2,565 2,535 1,451 1,279 1,407 2,241 1,052 1,052 1,239 1,552 884 866 841 1,587 1,396 1,345 466 635 897 1,095 175 229 297 434
Slide 20: Braskem Outlook | 3Q22 vs. 2Q22
Braskem Outlook | 3Q22 vs. 2Q22 Brazil United States Europe Mexico Expectation of higher ethylene Expectation of normalization of Expectation of higher production due to restarting of PP production expected to Utilization PP production due to production due to increase in operations at petrochemical
Slide 21: Braskem remains an interesting investment opportunity
Braskem remains an interesting investment opportunity in the global petrochemical industry Consensus vs. Actual Price on B3 Valuation by Multiple Why invest in Braskem? (BRKM5) (Recurring EV/EBITDA LTM¹) • Global company: with industrial units in Brazil, United States, Mexico and Germany and a globa
Slide 22: Recap: Our main goals for 2022
Recap: Our main goals for 2022 Strategic Pillars Goals and Status for 2022: Productivity and • Capture value through initiatives related to Transform for Value program, reaching recurring Competitiveness gains of US$302 million/year¹ in 2022 (93% of target already achieved) • Intensify actions in re
Slide 23: Earnings Conference Call 2Q22 – Investor Relations
EARNINGS CONFERENCE CALL 2Q22 AUGUST 11, 2022 Investor Relations IR Website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Telephone: +55 (11) 3576-9531 23