Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q3 2021 Earnings Presentation
25 slides from Braskem's earnings presentation, Nov 10, 2021
Slide 1: Earnings Conference Call 1Q21
EDF Renewables wind power complex that will supply renewable energy to Braskem EARNINGS CONFERENCE CALL 1Q21 M AY 6 , 2 0 2 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements. These forward-looking statements are not solely historical data, but rather reflect the targets and expectations of Braskem’s management. The terms “anticipate,” “believe,” “expect,” “foresee,” “intend,” “plan,” “estim
Slide 3: Petrochemical Context in 1Q21
Petrochemical Context in 1Q21 In 1Q21, petrochemical supply was impacted by the severe winter storm in the U.S. Gulf Coast, which led to unplanned production closures affecting resins suppliers. Additionally, demand continued strong Spread PE US – Naphtha ARA¹ Spread PE US – Ethane Mont Belvieu¹ Spr
Slide 4: 1Q21 Highlights | Braskem Consolidated
1Q21 Highlights | Braskem Consolidated Recurring Operating Result - 1Q21 (US$ million) Comments: • In 1Q21, recurring Operating Result was US$1,266 Profitability improves in 1Q21, as shown by the higher recurring million, up 52% on 4Q20, mainly due to: operating margin in the period i. better spread
Slide 5: 1Q21 Highlights | Brazil
1Q21 Highlights | Brazil Operational Financial Utilization Rate of Petrochemical Crackers Recurring Operating Result BRIDGE (%) (US$ million) -3 p.p. Impacted by the pit 85% 31 81% 82% stop (rapid scheduled maintenance shutdown) in RS 271 5 -44 1Q20 4Q20 1Q21 Ethylene 943 Resin Sales (PE+PP+PVC) 680
Slide 6: Higher supply of imported feedstock in Brazil
Higher supply of imported feedstock in Brazil Naphtha Purchases - Supplier Location (%) Comments: Diversified feedstock supplier base in Brazil, with • In line with the Company’s several suppliers of naphtha imports strategy to diversify its suppliers, the Brazil segment continued to Higher naphtha
Slide 7: Update on geological event in Alagoas - Financial Impact
Update on geological event in Alagoas - Financial Impact Financial Impact¹ - Balance of provisions in 1Q21 Disbursement Schedule (R$ billion) (R$ billion) In 1Q21, the balance of provisions related to the geological event in Alagoas ...of which approximately 50% was registered was around R$8.5 billi
Slide 8: Update on geological event in Alagoas - PCF
Update on geological event in Alagoas - PCF¹ Update of PCF¹ as of March 31, 2021 % Acceptance Index for Proposals Submitted Families Relocated Financial Compensation Proposals Submitted Payments Made (R$ million) +25% +74% 11.560 712,7 9.213 +58% 409,5 5.447 3.456 Dec/20 Mar/21 Dec/20 Mar/21 Dec/20
Slide 9: 1Q21 Highlights | USA & Europe
1Q21 Highlights | USA & Europe Operational Financial Utilization Rate of PP Plants Recurring Operating Result BRIDGE (%) -6 p.p. (US$ million) +30 p.p. 95% 88% 84% 93% 21 64% 78% Impact from winter storm Uri in the U.S. Gulf Coast 1Q20 4Q20* 1Q21 PP USA PP Europe 173 * Utilization Rate of 4Q20 in th
Slide 10: First international shipment from new global export hub facility
First international shipment from new global export hub facility Startup of new global export hub facility in Charleston, South Carolina • The new hub offers packaging, warehousing and export shipment services to support Braskem’s six PP plants in the United States • The facility has the capacity to
Slide 11: 1Q21 Highlights | Mexico
1Q21 Highlights | Mexico Operational Financial Utilization Rate of PE Plants Recurring Operating Result BRIDGE (%) (US$ million) 86% +10 p.p. -15 58% 48% In Mar/21, return of the natural gas transportation service with Cenagas 74 1Q20 4Q20 1Q21 PE -29 94 PE Sales 63 (kt) Reduction due to -27% lower
Slide 12: Expansion of ethane imports from U.S. to Braskem Idesa
Expansion of ethane imports from U.S. to Braskem Idesa U.S. Ethane Imports from USA (Fast Track Solution) ('000 barrels per day) Comments: • In 1Q21, to complement the supply Additionally, the expectation is of ethane by Pemex, Braskem Idesa In Dec/20, Braskem Idesa to increase the capacity of Fast
Slide 13: Free Cash Flow Generation
Free Cash Flow Generation Free Cash Flow Generation (R$ million) - 1Q21 Comments: • Free cash flow generation in 1Q21 was Consistent operating cash generation, in line with the strategy of positive by R$1,766 million, mainly due efficient capital allocation and financial health to: 6.943 i. the recu
Slide 14: Debt Profile
Debt Profile Debt Profile (US$ million) 03/31/2021¹ Debt Indicators Strong liquidity position, with most debt maturing in the long term • Sufficient liquidity to cover liabilities 49% coming due in next 79 months 3.469 Prepayment of perpetual 11 Available rotating bond (US$500 million) in 1Q21 2.469
Slide 15: Corporate Leverage
Corporate Leverage Net Debt/Recurring Operating Result (US$)¹ Comments: Significant reduction in leverage since 2Q20 • In line with its continuous commitment to -5,31 financial health and with the objective to 7,11 be reassigned as an investment grade 5,84 company, Braskem continued to reduce 4,71 4
Slide 16: ESG: Startup of the EDF Renewables wind complex
ESG: Startup of the EDF Renewables wind complex, which will supply renewable energy to Braskem Renewable Energy Purchase • Power supply secured by a 20-year power purchase agreement signed in 2018 • The partnership is estimated to result in the avoidance of 280,000 tons of CO2 emissions over the lif
Slide 17: ESG: Braskem and Trafigura world's first naphtha transport with carbon offset
ESG: Braskem and Trafigura perform the world's first transport of naphtha with carbon offset1 Offsetting of emissions in the value chain • Trafigura is a supplier of naphtha imports to Braskem's petrochemical complexes in Brazil • In collaboration with Braskem, the first naphtha shipment was made wi
Slide 18: ESG: International certification for chemical recycling
ESG: International certification to produce resins and chemicals from chemical recycling ISCC¹ Plus and Chemical Recycling • First Brazilian company to receive ISCC Plus certification for the use of circular feedstocks, such as pyrolysis oil, which is used to produce polymers • Pyrolysis oil is the
Slide 19: ESG: R$15 million in 2021 to combat hunger
ESG: Braskem allocates R$15 million in 2021 to combat hunger and distributes 48,000 food staple boxes in Brasil Combating the social crisis caused by COVID • The COVID pandemic has affected people's lives, especially with regard to basic survival needs • Braskem launched the distribution of 48,000 f
Slide 20: ESG: Authorized Economic Operator certification
ESG: Certification by the Federal Revenue Service as an Authorized Economic Operator (OEA) in the Compliance category Authorized Economic Operator • International recognition for adopting management processes that: minimize the risk events existing in import operations voluntarily comply with th
Slide 21: Petrochemical Scenario 2Q21 vs. 1Q21 - PE and PVC
Petrochemical Scenario 2Q21 vs. 1Q21 - PE and PVC Spread PE US – Naphtha ARA¹ Spread PE US – Ethane Mont Belvieu¹ Spread PVC – Spread Par¹ $/ton $/ton $/ton 1.759 1.796 1.567 1.583 1.515 1.187 1.059 1.088 1.050 904 915 813 703 704 693 690 713 1.609 1.406 1.196 378 427 1.024 932 666 753 178 187 802 4
Slide 22: Petrochemical Scenario 2Q21 vs. 1Q21 - PP
Petrochemical Scenario 2Q21 vs. 1Q21 - PP Spread PP US – Propylene US¹ Spread PP Europe – Propylene Europe¹ Spread PP Asia – Naphtha ARA¹ $/ton $/ton $/ton 2.579 2.477 1.985 1.664 1.609 1.587 1.407 1.264 1.302 1.250 1.194 1.190 1.205 1.214 1.072 1.066 1.081 908 899 768 846 865 806 679 577 1.213 970
Slide 23: Braskem Outlook | 2Q21 vs. 1Q21
Braskem Outlook | 2Q21 vs. 1Q21 Brazil United States Europe Mexico Ethylene production in line, Higher PP production, with the Higher PE production, due to with higher production in RS expectation of returning PP production in line, due to the return of gas transportation Utilization after the pitst
Slide 24: We remain focused on 6 main objectives for 2021
We remain focused on 6 main objectives for 2021 GEOLOGICAL PHENOMENON 1 Continue the advances related to the geological phenomenon in Alagoas IN ALAGOAS BRASKEM Expand the ethane import operation and negotiate definitive agreement with 2 IDESA PEMEX CAPITAL ALLOCATION / Ensure the Company's co
Slide 25: Thank you!
Thank you!