Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — Q2 2024 Earnings Presentation
25 slides from Braskem's earnings presentation, Aug 8, 2024
Slide 1: Earnings Conference Call 2nd Quarter 2024
EARNINGS CONFERENCE CALL 2nd QUARTER 2024 AUGUST 8, 2024 Industrial area (PE6) Triunfo, Rio Grande do Sul
Slide 2: Disclaimer Regarding Forward-Looking Statements
2Q24 EARNINGS CONFERENCE CALL 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 and othe
Slide 3: Agenda
AGENDA Main Highlights Operational Performance Alagoas Update Outlook for the future 3 | CONFIDENTIAL PUBLIC
Slide 4: 2Q24 Financial Highlights
2Q24 Financial Highlights 2Q24 Financial Highlights R ES I LIENCE A N D FI N A N C IA L Recurring EBITDA HEA L TH ∆ 1T24 ∆ 2T23 Liquidity² Advancement of corporate initiatives with US$320 MM + 39% + 128% US$2.8 billion impact on EBITDA and Cash Generation R$1.7 billion 61-month coverage 2Q24 YTD Res
Slide 5: Optimizing operating results while advancing long-term strategy
The Company continues to optimize its operating results while advancing its long-term strategy 2Q24 Operational Highlights 2Q24 Strategic Highlights TRADITIONAL AND DECARBONIZATION CAF + SAF¹ 0.93 (events/1MM HHT²) 75% physical Strategic partnership for 1H24 -14% vs. 1H23 the management of progress
Slide 6: Agenda
AGENDA Main Highlights Operational Performance Alagoas Update Outlook for the future 6 | CONFIDENTIAL PUBLIC
Slide 7: 2Q24 Performance | Brazil
Brazil Segment Recurring EBITDA in 2Q24 was US$231 MM, 10% higher than in the previous quarter 2Q24 Performance | Brazil Utilization Rate of Petrochemical Plants Shutdown at the Triunfo Recurring EBITDA Petrochemical Complex (% utilization of ethylene capacity) (in US$ million) plants after extreme
Slide 8: 2Q24 Performance | Green PE
The Green Ethylene utilization rate, impacted by the extreme weather event in Rio Grande do Sul, reached 35% in 2Q24 2Q24 Performance | Green PE Green Ethylene Utilization Rate Green PE Sales (% utilization of Green Ethylene capacity) (in thousand tons) Shutdown at the plants of the Triunfo Petroche
Slide 9: 2Q24 Performance | U.S. & Europe
In the U.S. & Europe Segment, Recurring EBITDA was US$46 million, lower compared to 1Q24 due to lower sales and lower spreads 2Q24 Performance | U.S. & Europe Utilization Rate of U.S. & European plants Recurring EBITDA (% of average utilization of US & European PP capacities) (in US$ million) +2 p.p
Slide 10: 2Q24 Performance | Mexico
In the Mexico Segment, sales volume and spread increased, resulting in Recurring EBITDA 53% higher than in 1Q24 2Q24 Performance | Mexico Average Utilization Rate of Mexico's Plants Recurring EBITDA Reduced raw material (% of average PE capacity utilization) supply and scheduled (in US$ million) mai
Slide 11: 2Q24 Performance | EBITDA
Braskem's consolidated Recurring EBITDA in 2Q24 was US$320 MM, 39% higher than in 1Q24, accumulating an increase of 59% in the semester compared to 2023 2Q24 Performance | EBITDA Consolidated Recurring EBITDA Key drivers of the (in US$ million) 2Q24 vs 1Q24 +59% PETROCHEMICAL SPREADS 550 Higher spre
Slide 12: 2Q24 Performance | Cash Generation
The Company's operating cash generation was R$1.1 billion in 2Q24, with recurring cash generation of R$357 million 2Q24 Performance | Cash Generation Cash Generation (Consumption) in 2Q24 (in R$ million) 1,667 128 15% higher than 1Q24 due to -646 higher EBITDA -33 -621 1,117 -190 51 357 -682 -325 Re
Slide 13: 2Q24 Performance | Indebtedness
Braskem maintains its robust cash position and a very long debt profile, with 64% of debt maturing as of 2030 2Q24 Performance | Indebtedness Debt Profile (US$ million) 06/30/20241 Debt Indicators Total Cash Principal Debt linked to Sustainability² Sufficient liquidity to cover debt maturities over
Slide 14: Agenda
AGENDA Main Highlights Operational Performance Alagoas Update Outlook for the future 14 | CONFIDENTIAL PUBLIC
Slide 15: Advancement of the work fronts in Alagoas
The Company maintains its commitment in the advancement of the work fronts in Alagoas 1 SOCIO & URBAN MEASURES 2 RELOCATION & COMPENSATION 3 CLOSURING & MONITORING OF SALT MINES 4 CONSOLIDATED FINANCIAL PROVISION 15 | PUBLIC CONFIDENTIAL PUBLIC
Slide 16: Socio & Urban measures
1 Socio & Urban measures (Status of 07/31/2024) Urban Mobility Actions Actions in the vacant areas 11 urban mobility projects, scheduled for completion in 2026: Overall progress of the Encosta do Mutange Project: 74.9% Ladeira Santa Amélia Marques de Abrantes Socio-Urban Action Plan (PAS) 48 actions
Slide 17: Relocation & Compensation
2 Relocation & Compensation (Status of 07/31/2024) Update of the Financial Compensation and Relocation Support Program (PCF) in relation to the estimated total: 99.7% of the Residents' Relocation Program Presented Accepted Paid executed until July/24 99.9% 98.4% 96.9% 19,153 proposals 18,864 proposa
Slide 18: Closuring & monitoring of salt mines
3 Closuring & monitoring of salt mines (Status of 07/31/2024) Closing Technique # Status Comments 5 cavities with completed filling Sand filling 3 4 7 11 15 17 2 cavities in advanced stage filling (Backfilling) 13 6 cavities, previously in the monitoring group, are in activity 19 20 21 25 27 29 34 p
Slide 19: Consolidated Financial Provision
4 Consolidated Financial Provision (Status of 06/30/2024) Total Amount and Balance of Provisions¹ (R$ billion) Disbursements Other obligations to pay 15.9 56% Current Liabilities 44% Non-current Liabilities (10.6) 4.8 (1.0) 0.5 (11.6) Total amount of provisions Disbursements and Realization of the p
Slide 20: Agenda
AGENDA Main Highlights Operational Performance Alagoas Update Outlook for the future 20 | CONFIDENTIAL PUBLIC
Slide 21: Outlook | 3Q24 vs. 2Q24
Outlook | 3Q24 vs. 2Q24 3Q24 vs. 2Q24 Brazil U.S. & Europe Mexico • Increase in the consolidated utilization rate • Increase in the utilization rate of the United Utilization due to the resumption of production at the States due to the resumption of production after a scheduled shutdown in 2Q24 • St
Slide 22: Decarbonization Journey | 2024 Progress
Decarbonization Journey | 2024 Progress Progress Journey in Reduction potential¹ development Current focus of the development of Ongoing initiatives in 2024 +240 Thousand solutions together with partners: tons of CO2e/year Electrification of equipment Purchase of renewable energy Implemented initiat
Slide 23: Resilience and financial health | Deliverables 2024
Resilience and financial health | Deliverables 2024 Deliverables 2Q24 YTD Impacts in 2024 Fronts of action 2024 PRIORITIES EBITDA ~US$ 51 MM Commercial ~US$ 100 MM Commitments Prioritization of investments established in Maceió related to the Company's long-term strategy EBITDA ¹ Fixed and ~US$ 53 M
Slide 24: Initiatives supporting priorities for 2024
Braskem has been continuously implementing initiatives that support its priorities for 2024 PRIORITIES 2024 PROGRESS IN 2Q24 Commitments established in Material progress on all work fronts Maceió ~R$10.6 billion of the financial provision disbursed until June/2024 Progress in the quarter on the perf
Slide 25: Earnings Conference Call 2nd Quarter 2024 - Investor Relations
EARNINGS CONFERENCE CALL 2nd QUARTER 2024 AUGUST 8, 2024 Investor Relations IR Website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Phone: +55 (11) 3576-9531 PUBLIC 25 | PUBLIC PUBLIC