Slide 1: Earnings Conference Call 4Q23 & 2023
Braskem Petrochemical Plant in Triunfo, Rio Grande do Sul, Brazil EARNINGS CONFERENCE CALL 4Q23 & 2023 MARCH 19, 2024 PUBLIC
Slide 2: Disclaimer Regarding Forward-Looking Statements
EARNINGS CONFERENCE CALL 4Q23 & 2023 DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements. These statements are not historical facts and are based on the Company’s current vision and estimates of the Company’s management regarding future economic a
Slide 3: Agenda
AGENDA 4Q23 & 2023 Main Highlights Operational Performance Financial Performance Alagoas Update Outlook for the Future 3| PUBLIC CONFIDENTIAL
Slide 4: Main highlights of the Company in 4Q23 and 2023
Main highlights of the Company in 4Q23 and 2023 Financial Highlights Recurring EBITDA Net Income (Loss) Recurring Cash Flow¹ 4Q23 US$ 211 MM 4Q23 - US$ 317 MM 4Q23 - US$ 106 MM R$ 1.0 billion -R$ 1.6 billion - R$ 524 MM 2023 US$ 743 MM 2023 - US$ 935 MM 2023 - US$ 375 MM R$ 3.7 billion - R$ 4.6 bill
Slide 5: Main highlights of the Company in 4Q23 and 2023 (operational and strategic)
Main highlights of the Company in 4Q23 and 2023 Operational Highlights Utilization rate Global accident frequency 4Q23: 84% PP Record production, exceeding the rate in the year: 1.08 PE + 18 p.p vs. 3Q23 industry average for the period: CAF + SAF¹ (events/1MM HHT²) Production Production 2023: 77% Un
Slide 6: Agenda
AGENDA 4Q23 & 2023 Main Highlights Operational Performance Financial Performance Alagoas Update Outlook for the Future 6 | CONFIDENTIAL PUBLIC
Slide 7: Highlights | Brazil
4Q23 & 2023 Highlights | Brazil Utilization Rate of Petrochemical Complexes Recurring EBITDA (% average utilization of ethylene capacity) (US$ million) Scheduled maintenance -7 p.p. -2 p.p shutdown in Bahia 72% 68% 66% 78% 71% +7% -6 123 115 4Q22 3Q23 4Q23 2022 2023 30 -16 Resin Sales (PE + PP + PVC
Slide 8: Highlights | Green PE
4Q23 & 2023 Highlights | Green PE Utilization Rate of Green Ethylene Green PE Life Cycle Analysis (LCA) (% utilization of Green Ethylene capacity) In November, the ACV was updated, which confirmed the negative carbon footprint of Green PE (I’m green bio- - 46p.p Supply restriction of feedstock - 26p
Slide 9: Highlights | USA & Europe
4Q23 & 2023 Highlights | USA & Europe Average utilization rate of PP plants in USA & Europe Recurring EBITDA (% average utilization of US and Europe PP capacities) (US$ million) +1 p.p. +1p.p. 75% 81% 82% 80% 81% +45% 4Q22 3Q23 4Q23 2022 2023 -64 96 87 PP sales (in thousand tons) 60 -6 +1% Flexibili
Slide 10: Highlights | Mexico
4Q23 & 2023 Highlights | México Average Utilization Rate of PE plants Recurring EBITDA (% average utilization of PE capacities) (US$ millions) Unscheduled +18p.p. +5p.p. shutdown 84% 73% 77% 69% 66% +245% 4Q22 3Q23 4Q23 2022 2023 -8 26 PE sales (in thousand tons) 35 +5% 8 Better spreads in the Inven
Slide 11: Agenda
AGENDA 4Q23 & 2023 Main Highlights Operational Performance Financial Performance Alagoas Update Outlook for the Future 11| 11| PUBLIC CONFIDENTIAL
Slide 12: Highlights | Consolidated EBITDA
4Q23 & 2023 Highlights | Consolidated EBITDA Recurring EBITDA Impact of resilience and financial (US$ million) health actions in 2023: 2022 2023 i. Prioritization of sales with higher 2,060 743 added value and optimization of the sales mix 920 802 ii. Implementation of initiatives to reduce fixed an
Slide 13: 2023 Highlights | Consolidated Cash Flow
2023 Highlights | Consolidated Cash Flow Cash Generation (Consumption) in 2023 (R$ million) ~ 12% lower than the estimate for the year due to the 2,584 prioritization of initiatives 3,737 -3,788 Optimization of the -742 operating cycle -3,551 -1,874 -866 752 -4,560 -2,686 Recurring Working Capital O
Slide 14: 2023 Highlights | Corporate Debt Profile
2023 Highlights | Corporate Debt Profile Debt Profile (US$ million) 12/31/2023(1) Debt Indicators Total cash Total debt Debt linked to Sustainability2 Stand by Sufficient liquidity to cover liabilities coming due in 4,611 the next 72 months³ Average corporate debt term is ~12 years 1,000 61% of matu
Slide 15: Agenda
AGENDA 4Q23 & 2023 Main Highlights Operational Performance Financial Performance Alagoas Update Outlook for the Future 15| PUBLIC CONFIDENTIAL
Slide 16: Updates about Alagoas
Updates about Alagoas Main action fronts: 1 RELOCATION AND COMPENSATION 2 CLOSING AND MONITORING OF THE SALT MINES 3 SOCIAL AND URBAN MEASURES 4 CONSOLIDATED FINANCIAL PROVISION 16| PUBLIC CONFIDENTIAL PUBLIC
Slide 17: Relocation and Compensation
Relocation and Compensation 1 (Status as of 02/29/2024) Relocation Program Update Update of the Financial Compensation and Relocation Support Program (PCF) proposals in relation to the estimated total • The risk area (area 00) from the 2020 Civil Defense map is 100% vacant Submitted Accepted Paid •
Slide 18: Closing and Monitoring of the Salt Mines
Closing and Monitoring of the Salt Mines 2 (Status as of 02/29/2024) Closing Technique # Status Comments 5 cavities with completed filling; 3 4 7 11 15 17 Backfilling 13 6 cavities recently included, previously in the monitoring 19 20 21 25 27 29 34 group, are being planned for the start of activiti
Slide 19: Social and Urban Measures
Social and Urban Measures 3 (Status as of 02/29/2024) Urban Mobility Actions Socio-Urbanistic Action Plan (PAS) 11 Urban Mobility projects 23 actions validated with the signatory authorities of the Agreement, 2 • 6 in progress of physical execution, and the Traffic Light system has already of which
Slide 20: Consolidated Financial Provision
Consolidated Financial Provision 4 Total Amount and Balance of Provisions¹ (Status as of 12/31/2023) (R$ billion) Disbursements Other obligations to pay 15.5 53% Current Liabilities 47% Non-Current Liabilities (9.5) 5.2 (1.1) 0.5 -10.7 Total amount of provisions Disbursements and Realization of the
Slide 21: Braskem's Commitments to Maceió
BRASKEM’S COMMITMENTS TO MACEIÓ Safety of people and social support to impacted Preservation of historical heritage, culture, and cultural residents practices in evacuation areas Completion of indemnity for families and merchants Compensation and interventions to improve public health, in evacuation
Slide 22: Agenda
AGENDA 4Q23 & 2023 Main Highlights Operational Performance Financial Performance Alagoas Update Outlook for the Future 22 | CONFIDENTIAL PUBLIC
Slide 23: Braskem Outlook | 4Q23 vs. 1Q24 and 2023 vs. 2024
Braskem Outlook | 4Q23 vs. 1Q24 and 2023 vs. 2024 Brazil USA & Europe Mexico Resumption of production after maintenance Utilization shutdown at Bahia Complex Maintenance of production levels due to Maintenance of the production outlook Rate¹ Green PE: resumption of production with shutdown in the Un
Slide 24: Braskem's Fronts of Actions for value creation
Braskem’s Fronts of Actions for value creation STRATEGIC DIRECTION 1 RESILIENCE AND 2 BUSINESS FINANCIAL HEALTHY GROWTH MAXIMIZATION OF CASH GENERATION ADDITIONAL CASH CONTRIBUTION CORPORATE STRATEGY VALUE CREATION 24| PUBLIC CONFIDENTIAL PUBLIC Source: Braskem.
Slide 25: Update of corporate initiatives with impact on EBITDA and Cash Generation
1 R ES I LIENCE AN D Update of corporate initiatives with impact FI N A N C IA L HEA L THY on EBITDA and Cash Generation Fronts of Action 2023 Results 2024 Perspectives ✓ Global commercial synergies EBITDA EBITDA Commercial ✓ Sales mix optimization and sales ➢ Strength commercial strategy prioritiza
Slide 26: Braskem will continue to advance its Growth Strategy
2 Braskem will continue to advance its Growth B US I N ES S GR OWTH Strategy, with the potential to create value of up to ~ US$ 1 billion1 by 2030 Traditional and Bio-based Recycling Decarbonization • New green ethylene plant in Thailand³ • Expansion (debottlenecking) of gas- Braskem Siam (JV with S
Slide 27: Priorities 2024
Priorities 2024 Accomplish the commitments Implement initiatives of financial preservation, deleveraging and reduction of cash need, with established in the agreements signed focus on resilience and financial healthy with the authorities in Maceió Optimize asset operation Prioritize investments rela
Slide 28: Results Conference Call 4Q23 and 2023
RESULTS CONFERENCE CALL 4Q23 AND 2023 MARCH 19, 2024 Investor Relations RI website: https://www.braskem-ri.com.br/ Email: braskem-ri@braskem.com.br Telephone: +55 (11) 3576-9531 PUBLIC 28| PUBLIC PUBLIC