Slide 1: Earnings Release 2Q23
Earnings Release 2Q23
Slide 2: 2Q23 highlights: Recurring EBITDA and green ethylene
(@) Recurring EBITDA (<2) Green ethylene Lower than 1023 Addition of Conclusion of green ani ethylene capacity US$140 MM (US$205 MM) and ‘on/year thyl i About R$703 MM 2022 (Us$802 MM) completed 2023 addition in 2023 Sufficient to cover ees i i PE utilization rate of Highest PE production US$2.9 Bn
Slide 3: Operating and financial indicators 2Q23
= 2Q23 1923 2Q22 Cha. ‘Chg. 1H23, 1H22 Chg. Hesi Oper enna eaestor (A) (6) Owe) ayo) © oe Brazil Utilization Rate Ethylene (%) 724% 77% 74% 5 p.p. 2 pp. 75% 80% 6 pp. ‘Sales Volume of Main Chemicals (kton) 606 694 725 13% 16% 1,300 1,541 -16% ‘Sales Volume of Main Chemicals Exports (kton) 106 78 65
Slide 4: International references: prices and spreads
c 1923 2922 ~— Chg. Chg. 1H23 1H22 — Chg. International References* (B) © (A)/(B)_(AYI(C)___(D) (E) (D)/(E) Prices Brent (US$/bbl) 78 81 114 “4% 31% 80 108 26% Naphtha 605 695 866 -13% 30% 650 875 26% Ethane 156 185 434 “16% 64% a7. 366 “53% Propane 350 428 649 “18% — -46% 389 663 -41% Resins (i) 93
Slide 5: Average utilization rate of petrochemical plants
b) Average utilization rate of petrochemical plants: decreased compared to 1Q23 (-5 p.p.) due to (i) the production adjustment to the lower demand in the period; and (ii) short unscheduled shutdowns and feedstock supply restrictions at the Rio de Janeiro and Rio Grande do Sul petrochemical complexes
Slide 6: Resin sales volume
c) Resin sales volume: in the Brazilian market, resin sales volume decreased from 1Q23 (-11%), in line with the contraction of the Brazilian resin market, due to the lower demand for PE, PP, and PVC, mainly from the packaging, household appliances, and hospital materials. Compared to 2Q22, resin sal
Slide 7: Main chemicals sales volume
d) Main chemicals sales volume 1 : in the Brazilian market, sales volume declined in relation to 1Q23 (-13%) and 2Q22 (-16%), mainly due to the lower sales volume (i) of ethylene and benzene given the lower demand for derivatives of these products; and (ii) of gasoline due to lower product availabil
Slide 8: Geological event in Alagoas
5.1.2 GEOLOGICAL EVENT IN ALAGOAS As assessed by the Company and its external advisors, considering the short- and long-term effects of the technical studies, existing information and the best estimate of expenses for implementing the various measures related to the geological event in Alagoas, the
Slide 9: Global Agreement with the Municipality of Maceió
On July 21, 2023, the Company executed agreement with the Municipality of Maceió (“Global Agreement”) for the payment of R$1.7 billion, of which approximately R$700 million had already been provisioned by the Company in previous years. For more information on advances on the action fronts related to
Slide 10: Net revenue
A) Net Revenue: decreased in U.S. dollar (-6%) and Brazilian real (-10%) in relation to 1Q23, explained by (i) the decrease of 138 kton, or 13%, in total resin sales volume; (ii) the reduction of 88 kton, or 13%, in main chemicals sales volume in the Brazilian market; and (iii) the 7% reduction in t
Slide 11: Sales by economic activity Brazil
‘Sales by Economic Activity PE | Brazil Sales by Economic Activity PP | Brazil Sales by Economic Activity PVC | Brazil Ls = = % | | | | ; ; 2922 1923 2923 2Q22 1923 2923 2922 1923 2923 I Food Mothers Infrastructure ll Agricultural Sector Industrial Ml Various Sectors Wi Construction Ml Automotive Il
Slide 12: Cost of goods sold
B) Cost of Goods Sold (COGS): decreased in U.S. dollar (-3%) and Brazilian real (-7%) compared to 1Q23, mainly explained by the 16% and 18% reduction in ethane and propane prices in the international market, respectively, based on the moving average, influenced mainly by the supply-demand dynamics o
Slide 13: SG&A expenses and renewables operational overview
C) SG&A EXPENSES: in U.S. dollar, decreased compared to 1Q23 (-8%) and to 2Q22 (-14%) mainly explained by lower expenses with third parties due to the efforts to reduce fixed costs carried out in the period. D) Recurring EBITDA: represented 56% of the Company’s segment consolidated Recurring EBITDA.
Slide 14: Green PE sales volume
b) Green PE sales volume: decreased in relation to 1Q23 (-23%) and compared with 2Q22 (-38%) as a result of the effect of the Green PE restocking process following the conclusion of the scheduled maintenance shutdown for the conclusion of the project for expanding the current production capacity of
Slide 15: Sales of Green PE
Sales (kton) of Green PE 38% 46 37 2922 1923 (i Green PE Green PE Sales Volume per Region (%) 2022 1923 2023 WM europe [Ml Brazil WH south America (Asia MM North America
Slide 16: Net revenue of Green PE and ETBE
A) Net Revenue of Green PE and ETBE 2 : increase compared to 1Q23 (+7%) due to the higher ETBE sales volume and higher Green PE price, with these factors partially offset by the lower Green PE sales volume and ETBE price. Compared to 2Q22, there was a decrease (-27%) due to the lower Green PE sales
Slide 17: Average utilization rate of PP plants
b) Average utilization rate of PP plants: stable in relation to 1Q23 and 2Q22, explained by the lower production volume in the United States due to the scheduled maintenance shutdown at one of the PP plants between April and May, which was partially offset by the higher production volume in Europe e
Slide 18: PP sales volume
c) PP sales volume: increased compared to 1Q23 (+3%), explained by higher PP sales volume in the United States due to higher demand after the de-stocking process in the chain during 1Q23. In relation to 2Q22, sales volume increased (+2%), mainly due to higher product availability for sale in Europe,
Slide 19: Sales volume US & Europe
Sales Volume (kton) | US & Europe 42% 1923 I PP US and Europe
Slide 20: US & Europe financial overview
2Q23 1923 2Q22 Che 1H23 1H22 Sn Sete awe @ (e) © VE AKG (0) © oe Nar Revere 344 ao¢ 1,340 “37% 44,737 2,729 cocs (814) (780) (1,089) 25% (1,594) (2,167) 26% Gross Profit 30 114 251 88% 562 74% Gross Margin 4% 13% 19% 15 pp. 21% -12pp. SCRA 7) (38) (38) 3% (79) 6% Other Operating Income (Expenses) 10
Slide 21: SG&A expenses and Mexico results
C) SG&A EXPENSES: in U.S. dollar, remained in line with 1Q23. Compared to 2Q22, the decrease (-3%) is due to lower expenses with third parties and maintenance of industrial and building services as a result of efforts to reduce fixed costs carried out in the period. D) Recurring EBITDA: represented
Slide 22: Average utilization rate of PE plants
b) Average utilization rate of PE plants: increased compared to 1Q23 (+14 p.p.) and 2Q22 (+19 p.p.) due to (i) higher ethane supply by Pemex, which reached an average of 36,000 barrels per day, above the contractual volume; and (ii) higher supply of imported ethane, which complemented the feedstock
Slide 23: PE sales volume
c) PE sales volume: increased in relation to 1Q23 (+8%) and 2Q22 (+13%) due to the higher product availability for sale given the higher utilization rate in the period.
Slide 24: Sales volume Mexico
Sales Volume (kton) | Mexico +13%) 2922 1923 2923 (Pe
Slide 25: Net revenue Mexico
A) Net Revenue: increased in U.S. dollar (+3%) in relation to 1Q23, mainly due to the increase of 17 kton, or 8%, in PE sales volume in the period. In Brazilian real, the decrease (-2%) in relation to 1Q23 is explained by the 5% appreciation in the average of the Brazilian real against the U.S. doll
Slide 26: Sales by economic activity Mexico
Sales by Economic Activity] Mexico 2922 1923 2923 WB bags & Films Wi industrial |B Packaging @ others Bl Hygiene and Cleaning Wl Chemicals Construction & Infrastructure
Slide 27: Cost of goods sold Mexico
B) Cost of Goods Sold (COGS): decreased in U.S. dollar (-5%) and Brazilian real (-10%) in relation to 1Q23, mainly explained by the reduction in production costs as a result of the higher utilization rate and the 16% and 18% reduction in the ethane and natural gas price in the international market,
Slide 28: SG&A expenses Mexico
C) SG&A EXPENSES: in U.S. dollar, the increase in relation to 1Q23 (+71%) is mainly explained by the increase in operating expenses with logistics and storage and with third parties. Compared to 2Q22, the increase (+3%) is mainly explained by higher operating expenses with logistics, storage, tankin
Slide 29: Ethane import terminal
5.3.3.1 ETHANE IMPORT TERMINAL In September 2021, Braskem Idesa approved and started the Ethane Import Terminal construction project in Mexico, which involves building an ethane import terminal with capacity of 80,000 barrels of ethane per day, enabling Braskem Idesa to operate at 100% of its capaci
Slide 30: Rating
Rating On June 30, 2023, Fitch Ratings revised upward its credit rating for Braskem Idesa S.A.P.I. from “BB-” to “B+” and reaffirmed its negative outlook. On July 7, 2023, S&P also revised its credit rating for Braskem Idesa S.A.P.I. from “B+” to “B”, with a negative outlook.
Slide 31: Income statement
Income Statement 2923, 1923 2922 Cha. Chg. ZS azz R$ millon @ ©) © C/E) (0) © (Gross Revenue 20,568 22,389 29,703 “8% “31% 42,957 (60,742 “29% Net Revenue 17736 19455, 9% -30% © 37,202 5,143 -29% Cost of Good Sold (#7298) (asa6i) (21,333) 6% “19% (85,759) (42,934) 17% Gross Profit 459 ‘985 4,079 “53
Slide 32: Net revenue consolidated
Net Revenue (R$ million) | Consolidated* 25,411 6% 19,446 ‘el 17,756 7% 3% 12% 60% 58% 2922 1923 2923 Brazil USA and Europe Exports? [ll Mexico Does not consider feedstock resala and others 2Considers only exports from Brazil
Slide 33: Other revenue (expense), net
6.3 OTHER REVENUE (EXPENSE), NET The Company recorded in 2Q23 a total net expense of R$928 million, mainly due to the adjustment in the amount accrued to the accounting provision for the geological event in Alagoas referring to the Global Agreement entered into with the Municipality of Maceió, as de
Slide 34: Recurring EBITDA
6.4 RECURRING EBITDA 6 The Company’s Recurring EBITDA in 2Q23 was US$140 million (R$703 million), lower 31% than 1Q23, mainly due to (i) the decrease in spreads in the international market of 29% for PVC in Brazil, 3% for PP in Europe and 5% for PE in Mexico; (ii) the reduction of 13% in total sales
Slide 35: Consolidated financial result
6.5 CONSOLIDATED FINANCIAL RESULT
Slide 36: Financial expenses and income
Financial expenses: decreased in relation to 1Q23 (-11%), mainly due to the lower interest expenses (i) on financial transactions in U.S. dollar due to the effect of the appreciation in the Brazilian real; and (ii) linked to the CDI and IPCA rates on financial transactions in Brazilian real. Compare
Slide 37: Net income (loss) and investments
6.6 NET INCOME (LOSS) In the quarter, the Company recorded a net loss 7 of US$156 million, or R$771 million, and net loss attributable to shareholders of US$121 million, or R$586 million, in the first half of the year. 6.7 INVESTMENTS Corporate investment projected by Braskem for 2023 is US$724 mill
Slide 38: Investments in sustainable development objectives
In 2Q23, the main investments related to the sustainable development Macro-Objectives were in (i) the project to expand green ethylene production capacity at the Triunfo Petrochemical Complex in Rio Grande do Sul; (ii) the projects associated with reducing CO2 emissions and capturing energy efficien
Slide 39: Global growth strategy
6.7.1 GLOBAL GROWTH STRATEGY In line with its Corporate Growth Strategy, Braskem remained focused on developing various projects related to its growth avenues, which included the following projects. 1. Traditional Business: a. Building an Ethane Import Terminal in Mexico The project, whose construct
Slide 40: Debt maturity profile and rating
6.9 DEBT MATURITY PROFILE AND RATING On June 30, 2023, the balance of corporate gross debt stood at U$8.9 billion, composed of 95% long-term maturities and 5% short-term maturities. Regarding net debt, the balance at the end of 2Q23 was US$4.6
Slide 41: Liquidity position
The liquidity position of US$2.9 billion in June 2023 is sufficient to cover the payment of all liabilities coming due in the next 74 months, not considering the international stand-by credit facility of US$1.0 billion available through 2026.
Slide 42: Debt profile
Debt Profile (US$ million) 06/30/2023‘ 3,000 2,895 18% [=| o% es 3% ws (ae) oo ea 22) (06/30/2023 2023, 2025 2026 2027 2028 2030/2031 2032 onwards cash Mi Totalcash [I Total debt fll Sustainability linked loan? [lll Standby * Does not consider the amount of US$35 milion destined tothe Financial Comp
Slide 43: Capital market: stock performance
7. CAPITAL MARKET 7.1 STOCK PERFORMANCE On June 30, 2023, Braskem’s stock was quoted at R$27.86/share ( BRKM5 ) and US$11.65/share ( BAK ). The Company’s shares are listed on the Level 1 corporate governance segment of the B3 – Brasil, Bolsa e Balcão
Slide 44: Corporate debt securities performance
7.2 CORPORATE DEBT SECURITIES PERFORMANCE
Slide 45: Bond yields and prices
2023 «1923. -2022_—SsVar. Var Bond Maturity __(A) (8) (©)__(a)-(8)_(A)-(C) Braskem '28 - yield % janjzn O58% 6.68% 6.57% 0.09% 0.01% Braskem '28 - price usd 92.21 91.35 90.66 «0.85 1.55 Braskem '30 - yield % 7.26% 7.33% 7.00% — -0.07% 0.25% Braskem '30 - price usd 7en/30g6.01 85.29 85.66 0.73 0.36 B
Slide 46: Alagoas provision action fronts
The current provision can be broken down into the following action fronts: a. Support for relocating and compensating for the residents, business and real state owners of properties located in the Civil Defense Map (version 4) updated in December 2020, including establishments that requires special
Slide 47: Consolidated recurring EBITDA calculation
8.4 CONSOLIDATED RECURRING EBITDA CALCULATION
Slide 48: Recurring EBITDA statement
Recurring EBITDA Statement (R$ milion) 2q@z3- 10232022 Change Change 9 1H23.2H22.— Change “ONSOLIDATED (a) (8) (ay) (A (0) © we Net Profit (823) 242 (1,463) ma. 44% = (S81) 2,485 na. Income Tax / Social Contribution (656) (38) (275) 568% = 138% (755) 795 na. Financial Result (361) 323,393, na. na, 3
Slide 49: Financial overview by segment
‘Other Fandel Overview (R$ milion) CORSOLIDATED 2023 Met Revenue CD65 Gros Prof souk ATUL Revenues ree™= "Eaaryn? Bratt 1244 (12,360) 3 (295) E (962)(1.303) 407 USS. and Europe 4178 (4.020) 140 (285) = st 35 9 Mexico 4,189 (1,083) 107 (123) = (4) (20) 199 ‘Segments Total ¥7,801__@7,493) 308 (702) :
Slide 50: Indicators
Indicators $ mi (A)/(B) (A), Recurring EBITDA 802 31% 82% EBITDA Margin? 4% 5% 16% 2pp. 12 pp. SG8A/Net Revenue (%) 6% 6% 5% Opp. Ipp. Pima Adjusted Net Debt 4,979 4,911 4,890 1% 2% Adjusted Net Debt/Recuring EBITDA (LTM)? 7.90x 3.86x 1.22x 105% 546% Recurring EBITDA (LTM)/Interest Paid (LTM) 1.43 3
Slide 51: Consolidated balance sheet
ASSETS (R$ million) Mar/23 () Change (a)/(8) Current ‘Cash and Cash Equivalents: 13,240 12,383 Marketable Securtties/Held for Trading 2,340 3,828 Accounts Recelvable 3,057 4,390 Inventories 12,985 13,782 Recoverable Taxes 1,250 1,003 Prepaid expenses 494 412 Derivatives 270 173 Other Assets 704 664
Slide 52: Cash flow statement
1923-2022 Change Change 222 Change @ (CR OUOMONC © owe Profit (Loss) Before Income Tax and Social Contribution (4,480) 144 (4,738) na. -15% (1,335) 3,280. ‘Adjust for Resuit Restatement Depreciation and Amortization 1304 1230-1416 6% 17% 2,585 2126 19% Equity Result 2 (a3) (0) nana. G27) 58% Interes
Slide 53: Braskem Idesa balance sheet
8.10 BRASKEM IDESA BALANCE SHEET
Slide 54: Braskem Idesa balance sheet
Jun/23 Mar/23 hange (A) (G)) (A)/(B) ASSETS (R$ million) Current 3,135 3,470 -10% Cash and Cash Equivalents 1,478 1,803 ~18% Accounts Receivable 296 279 6% Inventories 935 1,009 7% Recoverable Taxes 374 307 22% Other SL mn -29% Non Current 15,963 16,412 -3% Taxes Recoverable 282 293 4% Deferred Inco
Slide 55: 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