Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — 4Q21 Earnings Presentation
62 slides from Braskem's earnings presentation, Mar 18, 2022
Slide 1: Earnings Release 4Q21 and 2021
Slide 2: 4Q21 highlights
§ In 4Q21, Braskem’s recurring Operating Result was US$1.1 billion, 23% lower than in 3Q21, mainly due to: (i) lower international spreads for main chemicals, PE and PP in Brazil, PP in the United States and Europe and PE in Mexico, but above the historical average of the past ten years [1] ; and (i
Slide 3: Petrochemical spreads
§ PE Spread [5] : decreased compared to 3Q21 (-27%). The lower PE price in the United States in relation to 3Q21 was mainly influenced by: (i) the weaker demand due to seasonality; and (ii) the higher supply from producers. Similarly, the naphtha price also rose, following higher oil prices in the i
Slide 4: Average utilization rate of petrochemical crackers
b) Average utilization rate of petrochemical crackers: increase compared to 3Q21 (+6 p.p.) due to: (i) higher feedstock supply at the petrochemical complex in Rio de Janeiro; and (ii) higher PE demand in the Brazilian market. In relation to 4Q20, the utilization rate of the petrochemical crackers wa
Slide 5: Resins sales volume
c) Resins sales volume: in the Brazilian market, decreased compared to 3Q21 (-1%), explained by seasonality of the period, but with an increase of 1 p.p. of market share (65%). Compared to 4Q20, sales volume decreased (-13%), mainly due to the weaker resins demand in the Brazilian market. Exports in
Slide 6: Braskem sales volume of resins in the Brazilian market
Braskem Sales Volume (kton) of Resins in the ‘Brazilian Market | Grazil Ey i Brazilian Market raskem Sales Volume (kton) of Resins in the Brazilian Market | Brazil, % 2020 2024, Bi Braztian Market
Slide 7: Main chemicals sales volume
d) Main chemicals sales volume: in the Brazilian market, sales volume increased in relation to 3Q21 (+5%), supported by the higher product availability at petrochemical crackers. Compared to 4Q20, sales volume was practically stable, maintaining the activity of the client’s chain at healthy levels.
Slide 8: Braskem sales of main chemicals in the Brazilian market
Braskem Sales (kton) of Main Chemicals in the Braskem Sales (kton) of Main Chemicals in the Brazilian Market| Brazil ‘Brazilian Market} Brazil "2020 2021, Brazilian Market Hl Brazilian Market
Slide 9: Situation in Alagoas
2.1.3 SITUATION IN ALAGOAS a) Operational Average PVC utilization rate: considering the plants in Alagoas and Bahia, the capacity utilization rate was 69%, up from 3Q21 (+20 p.p.), mainly due to the restarting of operations after scheduled maintenance shutdowns at the PVC plants in both states. PVC
Slide 10: Alagoas provision
The current provision can be segregated 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 updated in December 2020, including establishments that requires special measures for
Slide 11: Net revenue
A) NET REVENUE: increased in Brazilian real (+10%) and U.S. dollar (+3%) compared to 3Q21, explained by higher PP and PVC prices in the international market and the higher sales volume of resins and main chemicals. Compared to 4Q20, the increase in Brazilian real (+50%) and U.S. dollar (+44%) is bas
Slide 12: Braskem sales by economic activity
Braskem Sales by Economic Activity] PP. . [Braskem Sales by Economic Activity| PE = femsti) Ls | oy mo 20, qo sea qt sez aaa Food Various Sectors Consumer goods Hl Others Industral i Cosmeticand Pharmaceutical (Food 1 oumaic and Pharmaceutical IH Reta Business Infrastructure 1 Agriclturl Sector Hl V
Slide 13: Braskem sales by economic activity
Braskem Sales by Economic Activity| PE Em 2020 Food Industrial BH Retail Business Others 2024 I Various Sectors I Cosmeticand Pharmaceutical Infrastructure Wi construction Braskem Sales by Economic Activity| PP Braskem Sales by Economic Activity| PVC | 7020 2028 2020 2021 ( Consumergoods Ml Others W
Slide 14: Import duty reduction and cost of goods sold
On November 4, Resolution GECEX No. 269 was approved by the Brazilian government regarding a temporary reduction of 10% in import duty rates for 87% of products in the tariff universe. As a result, the current rates for PP, PE and PVC resins decreased from 14% to 12.6% on November 12, 2021 and in pr
Slide 15: SG&A expenses and recurring operating result
C) SG&A EXPENSES: in U.S. dollar, remained in line with 3Q21 (-1%). Compared to 4Q20, increased 19%, mainly due to the higher expenses with third parties’ services. D) RECURRING OPERATING RESULT: represented 63% of the Company’s consolidated recurring Operating Result. 2.2 UNITED STATES & EUROPE 2.2
Slide 16: United States and Europe petrochemical spreads
ed States and Europe 421 3921 4920 Cha: 2021 2020 Cha. Intemational References! (U @) @) © AG) AO (©) © (ove) PP US 2,756 3,225 1,664 “15% 66% «= 2,833 1,386 104% PP Europe 2,004 2,024 4,205 “1% 66% 4,923 4,166 65% ‘Average Price - US and Europe () 2545 2,889 1536 Ti2% 66% 2,580 3,324 95% Propylene
Slide 17: Average utilization rate of PP plants
b) Average utilization rate of PP plants: in the United States, it decreased in relation to 3Q21 (-21 p.p.) and 4Q20 (-12 p.p.) explained by the scheduled maintenance shutdown at one of the plants in the region in the period and by the production slowdowns to pace with reducing demand in the region.
Slide 18: PP sales volume
c) PP sales volume: in the United States, sales volume decreased in relation to 3Q21 (-15%) and to 4Q20 (-10%), mainly explained by the lower product availability and by the lower demand in the period. In Europe, PP sales volume decreased (-6%) in relation to 3Q21, reflecting the lower product avail
Slide 19: Braskem sales volume US & Europe
415 Braskem Sales Volume (kton) | US & Europe 4920 sot 4024 IE PPUSA Ml PP Europe Braskem Sales Volume (kton) | US & Europe
Slide 20: Net revenue and COGS
A) NET REVENUE: decreased in Brazilian real (-21%) and U.S. dollar (-26%) compared to 3Q21, explained by the lower PP price in the United States and Europe and the lower sales volume in both regions. Compared to 4Q20, the increase in Brazilian real (+61%) and U.S. dollar (+56%) is explained by highe
Slide 21: SG&A expenses
C) SG&A EXPENSES: in U.S. dollar, the 2% decrease in relation to 3Q21 is explained by lower costs with logistics and storage services. Compared to 4Q20, the increase in U.S. dollar (+9%) is mainly due to the higher fixed costs with third parties and the variable operating expenses with port services
Slide 22: Average utilization rate of PE plants
b) Average utilization rate of PE plants: increase compared to 3Q21 (+13 p.p.) explained mainly by higher ethane imports from the United States under the Fast Track solution and by the higher ethane supply from PEMEX, in line with the volumes established in the amendment to the ethane supply agreeme
Slide 23: PE sales volume
c) PE sales volume: increased (+20%) compared to 3Q21, due to the higher product availability for sale as a result of the increase in the quarter utilization rate. In relation to 4Q20, the increase (+4%) is explained by the higher product availability for sale compared to the same period of the prev
Slide 24: Braskem sales volume Mexico
Braskem Sales Volume (kton) | Mexico Braskem Sales Volume (kton) | Mexico. 638 2020, 2021
Slide 25: Net revenue
A) NET REVENUE: increased in Brazilian real (+11%) and U.S. dollar (+3%) compared to 3Q21, due to the higher sales volume in the period. Compared to 4Q20, the increases in Brazilian real (+70%) and U.S. dollar (+65%) are mainly explained by the higher PE price in the international market. Sales by s
Slide 26: Braskem sales by economic activity Mexico
Braskem Sales by Economic Activity| Mexico 420 3Q21 agai Ml bags & Films Mi industrial WE Construction & Infrastructure Ill Others I Packaging Wi chemicals Il Hygiene and Cleaning Braskem Sales by Economic Activity| Mexico 2020 2021 Wl bags & Films Mi industrial I Construction & Infrastructure ll Ot
Slide 27: Cost of goods sold
B) COST OF GOODS SOLD (COGS): increases in Brazilian real (+16%) and U.S. dollar (+9%) compared to 3Q21, due to the higher sales volume and the higher ethane and natural gas prices in the international market. Compared to 4Q20, the increases in Brazilian real (+22%) and U.S. dollar (+18%) are basica
Slide 28: SG&A expenses and recurring operating result
C) SG&A EXPENSES: in U.S. dollar, the increase in relation to 3Q21 (9%) is mainly explained by the increase in fixed operating expenses with third parties. Compared to 4Q20, SG&A expenses remained stable. D) RECURRING OPERATING RESULT: represented to 13% of the Company’s consolidated recurring Opera
Slide 29: Consolidated income statement
Income 4Q2t-0 302100 4Q2000— Chg. ey. 2021 2020 Ges RS malion oy @) © aye) wy) c} Gross Revenue 32,870 32,873 22,288 0% = 47% 122860 69,569 77% Net Revenue 28,212 23,299 18,738 0% = 51% 105,625 53.543 20% (Goat of Good Sod (21510) (19,995) (13,798) 8% see (73,568) (47,332) 55% Gross Profit 6702 8205
Slide 30: Net revenue consolidated
Net Revenue (R$ million) | Consolidated! 28,299 26,212 18,738 420 3921 4Q21 MM brazil MMLUSA and Europe IM Exports? [lll Mexico ‘Does net conde feedstock esle and others 2Coneiders only exports from Brant Net Revenue (R$ million) | Consolidated 105.625 2020 200 Wi brazil Ml] USA and Europe I Exports
Slide 31: Other revenue (expense), net
C) OTHER REVENUE (EXPENSE), NET The Company recorded in 4Q21 a net expense of R$1.5 billion, mainly due to: (i) the accounting provision in the amount of R$1.4 billion, according to item 2.1.3 of this document; and (ii) fines, rescissions and indemnifications in the amount of R$224 million, which is
Slide 32: Other revenue (expense), net table
OTHER REVENUE (EXPENSE), NET* 4q21-3Q214Q200 Cha. Chg. 2021-2020 Chg.. R$ milion Oo (OF © wie) ao) © oe ina 100% 1031 (@41) 146% na 3 24 671% 210 Reversal (provkion) for damages ~ Alagoas na. 108% 180 Total Other Revenues na. 751 Other Expenses Provsin for avisute, n (2) 41% 50) Provision for damage
Slide 33: Results by segment 4Q21
millon) CONSOLIDATED 4@21 Bac 19,725 410 an) (125) 2080 US and Europe 7a17 1683 (G8) - 10 eae Mexto 1.906 Es (231) : Go) oe Segments Total 23,045, 5562 (51) = Ge) 41 Other Segments* 107 7 7 é C0) 2 Corporate Unt - : (9) - 58 co eliminations and Reclasifcations* (33) Ea 3 S) z o ® Braskem Total ez (a
Slide 34: Results by segment
CONSOLIDATED 421 = 355 (2781) 744 (6) (288) am 761 US and Europe 430 (4028) 32 (oy : 2 28 281 Mexco 24 (ast) 150 fe) : Q 25 160 Segments Total 5205 (4010) 4.196 (452) = (288) 75 2202 Other Segments* rc ) 7 3 7 © 5 4 Girperste Unt = : - aay) : 24 (85) an) Erinatons and Recessfestond? (188) 169 1 @ :
Slide 35: Notes
[12] Braskem’s consolidated result corresponds to the sum of the results in Brazil, United States & Europe and Mexico, less eliminations from the revenues and costs related to transfers of products among these regions. [13] Considers the period from 2011 to 2020.
Slide 36: Net financial result
E) NET FINANCIAL RESULT BRASKEM (ex-BRASKEM IDESA)
Slide 37: Financial expenses and revenue
Financial expenses: increased in relation to 3Q21 (+29%) and 4Q20 (+29%), mainly due to accounting recognition of financial expense related to income tax on the loan to be received from Braskem Idesa. Financial revenue: increases in relation to 3Q21 (19%) and 4Q20 (55%) due to: (i) the impact from h
Slide 38: Hedge accounting zero-cost collars
Strike Put ‘Strike Call Notional Heder ge reve se craton (average) (average) (85 milion) Zero-Cost Collar 1022 47 629 2127 Zero-Cost Collar 2022 492 679 1944 Zero-Cost Collar 3022 43 697 1199 Zero-Cost Collar 4Q22 an 745 412 Zero-Cost Collar 1023 480 7.40 908 Zero-Cost Collar 2023 480 751 562 Zero-C
Slide 39: Braskem Idesa financial result
Financial expenses: increase in relation to 3Q21 (+41%) and 4Q20 (+34%) due to: (i) the amortization of transaction costs associated with payment of the Project Finance; and (ii) the higher expenses with derivative instruments associated with the discontinuation of the interest rate swap operations
Slide 40: Liquidity and capital resources
G) LIQUIDITY & CAPITAL RESOURCES BRASKEM (ex-BRASKEM IDESA) On December 31, 2021, the average debt term was around 15 years, with approximately 54% of maturities concentrated after 2030. The weighted average cost of the Company’s debt was exchange variation plus 5.24%.
Slide 41: Stand-by credit facility
In December, the Company contracted, with a syndicate of 11 global banks, an international stand-by credit facility in the amount of US$1 billion, due in December 2026, to replace the current facility.
Slide 42: Debt profile
Debt Profile (US$ million) 12/31/2021) 54% 21% 11% 42% 4% aoe —— ae se oom oon oom aysj2021 2022 203 2028 2025 2026 2027 2028/2030 onwards Cash 2029 Wi Invested in R§ HH Local Currency Ml Standby i Invested in US$. Ml Foreign Currency (2) Does not consider the amount of RO. billon destined tothe Fin
Slide 43: Braskem Idesa debt
BRASKEM IDESA On December 31, 2021, the average debt term was around 9 years, with 92% of maturities concentrated after 2029. The weighted average cost of the Company’s debt was exchange variation plus 7.0%.
Slide 44: Braskem Idesa debt table
Braskem Idesa Debt dec/21 sep/2 dec/20 USS million A) B) c) Gross Debt 2,206 2,179 2,350 in RS : : = in USS 2,206 2,179 2,350 ©) Cash and Cash Equivalents 318 302 474 in RS - - - in USS 318 302 174 =) Net Debt 1,888 1,877 2,176 in RS 2 2 2 in USS 1,888 1,877 2,176 Recurring Operating Result (TM) 622
Slide 45: Investments and value creation
H) INVESTMENTS & VALUE CREATION At the end of 2021, the Company registered investments in the approximate amount of US$663 million, down 13% from the projection of US$764 million. Expenditures were mainly affected by the postponement of projects and the Brazilian real depreciation against the U.S. d
Slide 46: Investments in 2022
Investments in 2022 The investments projected by Braskem to be made during 2022 amount to R$5.6 billion (US$1.0 billion), which will be allocated mainly to the scheduled maintenance shutdowns at the Rio Grande do Sul plants, preparation for the scheduled maintenance shutdown at the Bahia plants in 2
Slide 47: Projected investment
The total investment projected of R$5.6 billion (US$1.0 billion) considers the amount of R$1.3 billion (US$0.2 billion) related to projects by Braskem's Sustainable Development Macro-Objective to be carried out throughout 2022.
Slide 48: Sustainable development macro-objectives
The projects are classified according to the following division: I. Macro-Objective 1 (MO 1) - health and safety of personnel and processes; II. Macro-Objective 2 (MO 2) - financial controls, governance and compliance processes; III. Macro-Objective 3 (MO 3) - to support the expansion of the I'm Gre
Slide 49: Recycled resins sales
§ Brazil: increase in sales of recycled resins compared to 3Q21 (+54%) and 4Q20 (+138%), mainly due to the higher number of clients and advances in expanding the portfolio of resins with recycled content. In the case of chemicals [20] , sales increased in relation to 3Q21 (+42%) and 4Q20 (+13%), due
Slide 50: Green PE sales and ETBE
Green PE Sales (I’m green TM bio-based) and ETBE
Slide 51: Social responsibility and human rights
4.6 SOCIAL RESPONSIBILITY & HUMAN RIGHTS
Slide 52: Share performance
Desempenho da Aco Dez Jan Fev. Mar Abr. Mai Dun Jul Ago Set. Outs SNv Cer —180V — BRKMS — BRKM3 — BAK Fonte: Bloomberg
Slide 53: Free float and shareholding composition
Free Float distribution in Shareholding composition in 12/31/2021 12/31/2021 (B3 + NYSE) Wl Brazilins IM Individuals WM Novonor Ml Others Ill Tresury Petrobras ADRs
Slide 54: Credit ratings and stand-by facility
In September, the risk rating agency S&P Global Ratings (S&P) upgraded Braskem’s risk rating on the global scale to BBB-, with a stable outlook. The agency highlighted that the rating upgrade to investment grade reflects the Company’s significant improvement in profitability and cash generation indi
Slide 55: List of annexes
LIST OF ANNEXES: ANNEX I: Consolidated Income Statement ANNEX II: Consolidated Recurring Operating Result Calculation ANNEX III: Consolidated Balance Sheet ANNEX IV: Consolidated Cash Flow ANNEX V: Braskem Idesa Income Statement ANNEX VI: Braskem Idesa Balance Sheet ANNEX VII: Braskem Idesa Cash Flo
Slide 56: Consolidated income statement
statement (R$ million) 4@21--3Q21-- 4Q20 Change 4Ghange = 2021, 2020 Chas CONSOLIDATED. @ @ (Al) ID (0) (CROC) (Grom Revenue ‘32870 32879 22.288 084796«122,860 69,569 7708 Net Revenue 23212 23799 18738 «0M 5196 105,625 58543 8006 (Coat of Gand Sad (2isi0) (15,995) (15,755) sess (75568) |7S34) 555 Gr
Slide 57: Consolidated recurring operating result calculation
nt (R$ million) (2020 Mee Profit 463351878 EAM 13962—(7,015) a. Team Te: / Socal Grrsbuten 7 (102) nz ae ses (2a) na. Fancal Resut 2a 302 (888) 20% na 508382 ERS Daparsten aroczaton and deplaton fea nant ne rt esl Os Gs 1056 758 co oe 2338 os Eiperses 270 23 ed as 1102 355 ins ‘Operating Result 5083
Slide 58: Consolidated balance sheet
ASSETS (R$ milion) Current (C} 34150 Change (0) 15% ‘Gshard Gah Eqislenis Marketable Seurtes/Hed for Trading ‘amour Receivable Inventors Recoverble Taxes Prepaid expences Prepaid expenses Derivatives ‘Other Acs 15853 3827 4732 e364 1153 LH8 345 4 465 “7% 4% 51% 5% 20% 23% 25% 096 Hon Current 5,894 a
Slide 59: Consolidated cash flow
2020 Change OE) Profit (Loss) Before Income Tax and Social Contribution 3288 3Ai6 99-6586 —-389 «17,961 (3684) a. Adjust for Result Restatemert Depredation and Amortization 1365 9531085285185 47S 4048 EzutyResut @ 4 (os) na. 10609 6) 8 na Interest, Monetary and Exchange Variation, Net 20133344 (1.31
Slide 60: Annex VI Braskem Idesa Balance Sheet
ANNEX VI Braskem Idesa Balance Sheet
Slide 61: Braskem Idesa balance sheet
ASSETS (R$ million) deci21dec/20 change “ 6) cane) Current 4173 2,159 Cash and Cash Equivalents 1773 904 96% Accounts Receivable 1.225 578 112% Inventories 1010 507 99% Recovereble Taxes 2 48 45% Other 133 121 18% Hon Current 17210__47,203 0% Taxes Recoverable 268 25 19% Defered Income Tax and Socal
Slide 62: 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