Slide 1: Earnings Conference Call 2Q23
EARNINGS CONFERENCE CALL 2Q23 AUGUST 9, 2023 PUBLIC
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: Company Highlights 2Q23
Company Highlights 2Q23 Net Income Recurring Recurring EBITDA (Loss) Cash Flow¹ R$703 MM -R$771 MM -R$27 MM¹ around around around -R$ 655 MM US$140 MM -US$156 MM -US$5 MM¹ around -US$ 132 MM considering the payments regarding the Geological FINANCIAL OPERATING STRATEGIC Event in Alagoas HIGHLIGHTS H
Slide 4: Consolidated EBITDA US$140 million in 2Q23
Highlights 2Q23 | Consolidated EBITDA Recurring EBITDA Recurring EBITDA US$140 million in 2Q23 mainly explained by: (US$ million) 802 Decrease in sales volume of resins and main chemicals in Brazil and PP in Europe compared to the previous quarter due to the downturn in demand -32% 205 Decreased spr
Slide 5: Highlights 2Q23: Brazil
Highlights 2Q23 | Brazil Utilization Rate of Petrochemical Complexes Recurring EBITDA bridge (%) Ethylene (US$ million) Production -5 p.p. adjustment to the 122 lower demand 74% 77% 72% -20 -37 81 2Q22 1Q23 2Q23 Resin Sales (PE + PP + PVC) 62 (kt) Brazilian Market Exports -47 -20% -11% 1.000 879 884
Slide 6: Green ethylene capacity expansion project concluded in 2Q23
Green ethylene capacity expansion project concluded in 2Q23 Green PE Sales Addition of 60,000 tons % Utilization Rate Production capacity (kton) Green PE Sales (kton) per year in green ethylene production 260 200 200 200 200 200 200 200 200 200 200 200 200 200 Braskem concluded the project to expand
Slide 7: Geological event in Alagoas | Updates (1/2)
Geological event in Alagoas | Updates (1/2) Relocation & Compensation – PCF¹ Closing & Monitoring of Wells (Status as of 06/30/2023) (Status as of 06/30/2023) Concluded In progress Not started Update on Relocation and Compensation Proposals in 14 have completed the filling activities of the relation
Slide 8: Geological event in Alagoas | Updates (2/2)
Geological event in Alagoas | Updates (2/2) Advances on Socio-urbanistic and Environmental Measures Total Amount and Balance of Provisions¹ (Status as of 06/30/2023) (R$ billion) Relocation and Compensation Socio-urban measures Closing and monitoring of salt wells Additional measures² All 11 Urban M
Slide 9: Highlights 2Q23: USA & Europe
Highlights 2Q23 | USA & Europe Average utilization rate of PP plants in USA & Europe Recurring EBITDA bridge (%) (US$ million) -1 p.p. 98 6 80% 81% 80% -62 2Q22 1Q23 2Q23 PP Sales USA & Europe (kt) -18 24 +3% 600 526 518 536 400 Recurring Volume Contribution FC¹+SG&A² Recurring 200 EBITDA 1Q23 Matgi
Slide 10: Highlights 2Q23: Mexico
Highlights 2Q23 | Mexico Utilization Rate of PE plants Recurring EBITDA bridge (%) Highest PE (US$ million) production volume +14 p.p. -3 40 of last 6 years 100 86% 11 67% 72% 50 0 27 5 2Q22 1Q23 2Q23 PE sales (kt) 400 +8% 300 190 197 214 200 100 Recurring Volume Contribution FC¹+SG&A² Recurring 0 E
Slide 11: Consolidated Cash Flow
Highlights 2Q23 | Consolidated Cash Flow Cash Generation (Consumption) in 2Q23 (R$ million) -682 962 703 -227 -524 Optimization of Working capital -300 40 -27 -627 -655 Recurring EBITDA Working Capital Operational Strategic Interest Paid IR/CSLL Paid Other Recurring Cash Geological Cash Flow 2Q23 CA
Slide 12: Corporate Debt Profile
Highlights 2Q23 | Corporate Debt Profile Debt Profile (US$ million) 06/30/2023(1) Debt Indicators 3,895 Sufficient liquidity to cover liabilities coming due in 57% of maturities concentrated after next 74 months³ 2030 1,000 Weighted average cost of debt is FX variation + 6.0%4 2,895 2,951 Conservati
Slide 13: Corporate Credit and Leverage Metrics
Highlights 2Q23 | Corporate Credit and Leverage Metrics Adjusted Net Debt/Recurring EBITDA (LTM)¹ (US$ million) Adjusted Net Debt (ex-Braskem Idesa) Recurring EBITDA (LTM) Comments Stable Net Debt in the period -51% +1% Net debt remained in line with 1Q23 4,602 4,646 The continued downcycle in the p
Slide 14: Braskem continues advancing in its sustainable development commitments
Braskem continues advancing in its sustainable development commitments Climate Risks Increase in the Recycled resins Donation of resin to AACD sales volume The Company concluded its 2030 In the 2Q23, sales volume for the In June, Braskem donated the first and 2050 Climate Risks analysis, resins with
Slide 15: Braskem Outlook | 1H23 vs. 2H23
Braskem Outlook | 1H23 vs. 2H23 Comments¹ Brazil¹ Utilization rate: Reduction due the schedule maintenance shutdown in the petrochemical complex in Bahia during 3Q23 Brazil USA & Europe Mexico Sales volume: increase in resins due higher demand in the period, and reduction for chemicals in function o
Slide 16: Update of corporate initiatives with impact on EBITDA and Cash Generation
Update of corporate initiatives with impact on EBITDA and Cash Generation Impacts on Update on 2023¹ 1S23 estimates Status Initiatives with impacts on EBITDA 2023¹ Deliveries 1 Revenues Optimization of global commercial management ~US$ 100 MM ~US$ 100 MM ~US$ 20 MM (recurring) (recurring) 2 Fixed &
Slide 17: Our priorities for 2023
Our priorities for 2023 Optimize asset operations and focus on cost discipline Implement financial preservation initiatives, with a focus on creating value for shareholders Prioritize, selectively, investments related to eliminating plastic waste and combating climate change, and focus on initiative
Slide 18: Earnings Conference Call 2Q23
EARNINGS CONFERENCE CALL 2Q23 AUGUST 9, 2023 Investor Relations Department IR Website: https://www.braskem-ri.com.br/ E-mail: braskem-ri@braskem.com.br Telephone: +55 (11) 3576-9531