Slide 1: Earnings Conference Call 4Q21 & 2021
EARNINGS CONFERENCE CALL 4Q21 & 2021 MARCH 17, 2022 Braskem's new mechanical recycling line, in partnership with Valoren
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 2021
Main highlights of the Company in 2021 Financial Highlights ESG Highlights • Advances in expanding current production capacity of 1 Financial Results: green ethylene in Triunfo • Record annual recurring Operating Result (US$5.6 billion) and net cash • Execution of MOU4 with SCG Chemicals and Lummus
Slide 4: 4Q21 & 2021 Highlights | Braskem Consolidated (1/2)
4Q21 & 2021 Highlights | Braskem Consolidated (1/2) Recurring Operating Result – 4Q21 & 2021 Comments: (US$ million) • In 4Q21, recurring Operating Result was US$1.1 Higher profitability in 2021, as shown by period's higher recurring billion, down 23% on 3Q21, mainly due to: operating margin i. lowe
Slide 5: 4Q21 & 2021 Highlights | Braskem Consolidated (2/2)
4Q21 & 2021 Highlights | Braskem Consolidated (2/2) Net Profit - 4Q21 & 2021 (R$ million) Comments: Positive net profit in 2021, after net loss registered in 2020 • In 2021, Braskem reported net profit of R$14.0 billion. In Dec/20, Braskem registered n.a. Accumulated Losses of R$4.5 billion, which w
Slide 6: Operational Financial Highlights 4Q21 & 2021 | Brazil
Highlights 4Q21 & 2021 | Brazil Operational Financial Utilization Rate of Petrochemical Crackers Recurring Operating Result BRIDGE (%) (US$ million) Higher feedstock +6 p.p. availability in RJ +0 p.p. 34 -170 and greater 165 -96 85% 79% 85% demand for PE 81% 81% in the Brazilian market 828 761 Recur
Slide 7: Update on Geological Event in Alagoas (1/2)
Update on Geological Event in Alagoas (1/2) Financial Impact¹ – Balance of Provisions in 4Q21 Disbursement Schedule (R$ billion) (R$ billion) In 4Q21, the balance of provisions related to the geological event in Alagoas ... of which some 57% was under Current Liabilities was around R$7.7² billion...
Slide 8: Update on Geological Event in Alagoas (2/2)
Update on Geological Event in Alagoas (2/2) Update of PCF¹ as of February 28, 2022 Status on Feb/28/22 Acceptance Index for Proposals Submitted Approximately 97% of properties Financial Compensation Proposals Submitted Payments Made (R$ million)² Properties Relocated 99.7% 99.6% 99.7% 99.6% 99.5% 52
Slide 9: Operational Financial Highlights 4Q21 & 2021 | USA & Europe
Highlights 4Q21 & 2021 | USA & Europe Operational Financial Utilization Rate of PP Plants Recurring Operating Result BRIDGE (%) -8 p.p. (US$ million) +12 p.p. -21 p.p. -6 p.p. -81 85% 94% 92% 92% 79% 86% 91% -192 64% 73% 84% 519 34 281 4Q20 3Q21 4Q21 2020 2021 Recurring Volume Contribution FC¹+SG&A²
Slide 10: Operational Financial Highlights 4Q21 & 2021 | Mexico
Highlights 4Q21 & 2021 | Mexico Operational Financial Utilization Rate of PE Plants Recurring Operating Result BRIDGE (%) +13 p.p. (US$ million) Higher 81% feedstock 74% 66% 40 -36 68% supply (PEMEX -10 48% and Fast Track) 166 160 4Q20 3Q21 4Q21 2020 2021 Recurring Volume Contribution FC¹+SG&A² Recu
Slide 11: Higher Feedstock Supply (ethane) to Braskem Idesa in 4Q21
Higher Feedstock Supply (ethane) to Braskem Idesa in 4Q21, with positive outlook for 2022 Ethane Supply – PEMEX vs. Fast Track (Thousand barrels per day – kbpd) Comments: Braskem Idesa could reach around Fast Track PEMEX 100% of its feedstock needs • In 4Q21, Braskem Idesa imported (PEMEX + Fast Tra
Slide 12: Ethane Import Terminal, Braskem Idesa FID approved in Dec/21
Regarding the Ethane Import Terminal, Braskem Idesa had the FID¹ approved in Dec/21 Advances • Constitution of the subsidiary: Terminal Química Puerto México • CAPEX of US$400 million • FID¹ approved by Braskem Idesa shareholders • Licenses and permits on schedule • Detailed engineering 45% comple
Slide 13: Historic annual record of operating cash generation in 2021
Considering the consolidated result, Braskem reported a historic annual record of operating cash generation in 2021 Free Cash Generation – 4Q21 Free Cash Generation – 2021 (R$ million) FCF Yield¹ 4Q21: 24% (R$ million) +739% 10,705 7,068 6,317 -78 -910 -1,182 -313 3,104 -534 -196 3,108 1 1,276 Recur
Slide 14: Efficient capital allocation focused on value and returns for shareholders
Braskem remains committed to efficient capital allocation with focus on creating value and returns for shareholders 1 2 3 Gross Debt Reduction Dividend Distributions Investments • Significant reduction in Gross Debt • Remuneration of shareholders • Realization of (i) operating level¹ (US$1.8 billion
Slide 15: Better return metrics than international peers
Braskem has been showing better return metrics than its international peers Return for Shareholders Free Cash Flow Yield Dividend Yield (Total Shareholder Return in US$ - 2021) (FCF Yield¹ in US$ - 2021) (Dividend Yield² in US$ - 2021) 157% 24% 30% 21% 15% 14% 13% 11% 8% 8% 5% 4% 4% 1% -12% Braskem
Slide 16: Maintenance of very long debt maturity profile
Maintenance of very long debt maturity profile Debt Profile (US$ million) Dec/31/21(1) Debt Indicators Strong liquidity position, with most liabilities maturing • Sufficient liquidity to cover liabilities coming in long term (54% after 2030) 54% due in next 72 months 9 • Average debt term of around
Slide 17: Solid credit metrics and low corporate leverage ratio
Braskem continued to present solid credit metrics and low corporate leverage ratio, even after the distribution of anticipated dividends of R$ 6 billion Adjusted Net Debt/Recurring Operating Result¹ (US$ million) Corporate Leverage (Ex-Braskem Idesa) Adjusted Net Debt (ex-Braskem Idesa) Recurring Op
Slide 18: Investment grade upgrade by Fitch
Braskem was once again considered an investment grade company with the upgrade of its rating by the risk rating agency Fitch Braskem's risk level on global scale (Agencies' Rating Scales) Comments: S&P Fitch Moody's • In Sep/21, S&P Global Ratings (S&P) AAA AAA Aaa upgraded Braskem’s risk rating on
Slide 19: ESG: Growing renewables business, 1 million tons Green PE by 2030
ESG: Braskem continues to grow its renewables business and is committed to reaching 1 million tons of Green PE production capacity by 2030 Green PE Sales (I’m greenTM bio-based) and ETBE¹ Net Revenue of Green PE and ETBE (kt) (US$ million) Outlook +65% Green PE ETBE 1,000 630 Braskem's target is to
Slide 20: ESG: Circular Economy projects
ESG: Braskem is contributing capital (R$130 million) in projects related to Circular Economy in Brazil 1 2 3 Circular Packaging Mechanical Recycling Advanced Recycling Development Center Technological Development and construction of the first advanced Construction of an innovation hub, in Constructi
Slide 21: ESG: Biomass steam purchase agreement with Veolia Brasil
ESG: In renewable energy, Braskem entered into purchase agreement for steam produced from biomass with Veolia Brasil Main information on partnership with Veolia Brasil¹ • Purchase agreement for steam produced from biomass in 1 Project Alagoas • R$400 million (Veolia: construction of an industrial an
Slide 22: In 2022, the Company expects to invest US$1.2 billion
In 2022, the Company expects to invest US$ 1.2 billion Company Investments (Consolidated) Comments: (US$ Million) CAPEX 2022e Operational vs. Strategic Strategic Operational • Operational: (i) the scheduled maintenance Lower CAPEX compared to shutdowns at the Rio Grande do Sul plants, (ii) budgeted
Slide 23: Braskem Outlook | 1Q22 vs. 4Q21
Braskem Outlook | 1Q22 vs. 4Q21 Brazil United States Europe Mexico PP operations expected to Expectation of higher PP Expectation of increase in Expectation of maintaining normalize after scheduled production due to restarting of production, with PEMEX Utilization ethylene production at levels maint
Slide 24: Interesting investment opportunity in global petrochemical industry
Braskem remains an interesting investment opportunity in global petrochemical industry Valuation by Multiple Indicators Braskem vs. Peers Consensus vs. Actual Price on B3 (EV/Recurring Operating Result LTM¹) (Profitability and Credit KPIs - 2021) (BRKM5) US Peers Average² Braskem Braskem US Peers Av
Slide 25: BRKM5 increased trading liquidity and weighting in Brazil's stock market
Braskem stock (BRKM5) increased trading liquidity and weighting in Brazil's stock market BRKM5 is improving its position in B3 Tradability Index With the improvement in the IN, BRKM5 was included (IN), which is calculated based on again in IBRX-50, index tracking performance of the 50 liquidity indi
Slide 26: Strategy focused on renewables, recycling and productivity improvement
Lastly, we will continue to focus on implementing our strategy focused on renewables, recycling and productivity improvement OUR MAIN GROWTH AVENUES Existing Productivity & Renewables Recycling Competitiveness Projects Capital Strategic Pillars • Expansion of our Green PE • Grow to 1 million tons of
Slide 27: Earnings Conference Call 4Q21 & 2021
EARNINGS CONFERENCE CALL 4Q21 & 2021