Slide 1: Management Report
Management Report Braskem's basic petrochemicals unit Duque de Caxias — RJ
Slide 2: International References (US$/ton)
2021 Cha. International References! (US$/ton) )_ aie) Prices Brent (US$/bbI) 101 a 43% ‘Naphtha 770 635 21% Ethane 35 955% Propane 5784 6% Resins (i) 1,201 1,508 -20% PEUS 12081470825 PP Asia 1106428 -11% PVC Asia 105 1356 19% ‘Main Chemicals (ii) 1,263, 1,091 16% Caustic Soda US o17303, 108% EDC US
Slide 3: Average utilization rate of petrochemical crackers
b) Average utilization rate of petrochemical crackers: in comparison with 2021, the average utilization rate of petrochemical crackers in 2022 was lower (-3 p.p.), explained mainly by the lower spreads in the international market due to lower demand. Additionally, the average utilization rate of pet
Slide 4: Resins sales volume
c) Resins sales volume: resin sales in the Brazilian market remained in line with 2021, explained by the higher resins market share and the increase in PE local demand, which partially offset the lower demand for PP and PVC in the Brazilian market during 2022. Resin exports in 2022 remained in line
Slide 5: Main chemicals sales volume
d) Main chemicals sales volume: in the year, sales volume of the main chemicals in the Brazilian market decreased (-6%) mainly due to the lower sales volume of (i) benzene, butadiene and toluene due to the lower product availability for sale, given the lower utilization rate of the petrochemical com
Slide 6: Geological Event in Alagoas
3.2.1.2 GEOLOGICAL EVENT IN ALAGOAS a. Provisions As assessed by the Company and its external advisors, considering the measures recommended on technical studies in the short and long-term and the existing information and refined estimates of expenses for implementing several measures connected with
Slide 7: Provision action fronts
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 (version 4) updated in December 2020, including establishments that requires special m
Slide 8: Net Revenue
A) NET REVENUE: net revenue in U.S. dollar increased compared to 2021 (+4%), mainly due to higher prices for main chemicals in the international market. In Brazilian real, net revenue in 2022 decreased in relation to 2021 (-1%), due to the Brazilian real appreciation of 4% against the U.S. dollar be
Slide 9: Sales by Economic Activity | Brazil
Sales by Economic Activity PE | Brazil Sales by Economic Activity PP | Brazil Sales by Economic Activity PVC | Brazil 12% 12% 60% 62% 2021 2022 2021 2022 2021 2022 1 Food Il Various Sectors ll Consumer goods Ml Others Hl construction Agricultural Sector Industrial Il cosmetic and Pharmaceutical 1 Fo
Slide 10: Cost of Goods Sold (COGS)
B) COST OF GOODS SOLD (COGS): the increase in U.S. dollar (+34%) and in Brazilian reais (+28%) compared to 2021 is mainly explained by the higher prices considering the moving average for key petrochemical feedstocks (naphtha, ethane and propane) in the international market, influenced mainly by hig
Slide 11: SG&A, Recurring EBITDA and Renewables Overview
C) SG&A EXPENSES: in U.S. dollar, increased in relation to 2021 (+20%), mainly due to the higher expenses with third parties and tankage services. D) RECURRING EBITDA: corresponded to 60% of the consolidated recurring EBITDA of the Company’s segment. 3.2.1.4 RENEWABLES Operational Overview a) Utiliz
Slide 12: Green PE sales volume
b) Green PE sales volume: in 2022, the sales volume of Green PE was a historic record since the beginning of its operation in 2010 and increased by 8% compared to 2021, due to the higher logistical availability for export and demand at healthy levels in the period.
Slide 13: Braskem Sales (kton) of Green PE
Braskem Sales (kton) of Green PE 179 165 Il Green PE
Slide 14: Green PE Sales Volume per Region (%)
Green PE Sales Volume per Region (%) 2021 2022 | Europe [i Brazil HB south America Asia [J North America
Slide 15: Net Sales Revenue, Green PE and US & Europe
A) NET SALES REVENUE GREEN PE (I’m green TM bio-based ) + ETBE [20] : increased (+35%) due to (i) the higher sales volume of Green PE; (ii) appreciation of the ETBE international references and attractive Green PE prices; (iii) stabilization of the ETBE operation after concluding the investment in c
Slide 16: Average utilization rate of PP plants
b) Average utilization rate of PP plants: the utilization rate in the United States declined 7 p.p. in relation to 2021 due to the lower PP demand in the region and the scheduled maintenance shutdowns and short unscheduled shutdowns at PP plants in the period. In Europe, the utilization rate decreas
Slide 17: Sales volume US & Europe
c) Sales volume: PP sales volume in the United States [22] decreased 4% compared to 2021 explained by the lower demand in the region associated with high inventory levels in the converter chain and the fear of an economic recession in the region. In Europe, PP sales volume decreased (-9%) due to the
Slide 18: Sales Volume (kton) | US & Europe
Sales Volume (kton) | US & Europe 2022 Hi PP USA Hl PP Europe
Slide 19: Net Revenue and COGS, US & Europe
A) NET REVENUE: decreased in U.S. dollar (-25%) and Brazilian real (-28%) in relation to 2021, explained by the lower PP sales volume in the United States and Europe and the lower international PP price in both regions. In Brazilian real, the decrease also is explained by the 4% appreciation in the
Slide 20: SG&A, EBITDA and Mexico Operating Overview
C) SG&A EXPENSES: in U.S. dollar, the decrease (-3%) in relation to 2021 is explained by lower costs with logistics and storage, with port services and with selling activities. D) RECURRING EBITDA: corresponded to 30% of the Company’s consolidated recurring EBITDA. 3.2.3 MEXICO 3.2.3.1 OPERATING OVE
Slide 21: Average utilization rate of PE plants
b) Average utilization rate of PE plants: in 2022, the utilization rate was higher in 7 p.p. explained by the expansion of the Fast Track solution for importing ethane, which reached 18,500 barrels per day on average for the year, representing an increase of 20% compared to 2021 and 74% of utilizati
Slide 22: PE sales volume
c) PE sales volume: PE sales volume increased (+20%) in relation to 2021, reflecting the higher product availability for sale, given the higher utilization rate in the period and stronger PE demand in the region due to the recovery of the Mexican economy throughout 2022.
Slide 23: Sales Volume (kton) | Mexico
Sales Volume (kton) | Mexico 767 638 2021 2022 TPE
Slide 24: Net Revenue, Mexico
A) NET REVENUE: decreased in U.S. dollar (-6%) and in Brazilian real (-10%), mainly due to the lower PE price in the international market. In Brazilian real, the decrease also is explained by the 4% appreciation in the Brazilian real against the U.S. dollar.
Slide 25: Sales by Economic Activity | Mexico
Sales by Economic Activity | Mexico 2021 2022 Hl Bags & Films i industrial I Construction & Infrastructure [lj Others (Packaging Hl Chemicals Wl Hygiene and Cleaning
Slide 26: Cost of Goods Sold, Mexico
B) COST OF GOODS SOLD (COGS): the increase in U.S. dollar (+56%) and in Brazilian real (+49%) is explained by (i) the higher prices considering the moving average for ethane and natural gas in the international market; and (ii) the higher PE sales volume. In the year, COGS was affected by the net am
Slide 27: SG&A, EBITDA and Ethane Import Terminal
C) SG&A: in U.S. dollar, remained in line with 2022 in comparison with 2021. D) RECURRING EBITDA: corresponded to 10% of the Company’s consolidated recurring EBITDA. 3.2.3.3 ETHANE IMPORT TERMINAL In September 2021, Braskem Idesa approved and started the project for the construction of an Ethane Imp
Slide 28: Income Statement 2022
me Statement 2022 R$ milion () Gross Revenue 111,716 Net Revenue 96,519 Cost of Good Sold (85,161) Gross Profit 11,359 ‘Selling and Distribution Expenses (2,108) (Loss) reversals for impaitment of accounts receivable GB) General and Administrative Expenses (2,764) Expenses with Research and Technolo
Slide 29: Net Revenue (R$ million) Consolidated
Net Revenue (R$ million) | Consolidated? 105,625 9 Gee 96,519 6% 10% 12% 53% 58% 2021 2022 WB Brazil USA and Europe Wl Exports? Mexico *Does not consider feedstock resale and others 2Considers only exports from Brazi
Slide 30: Other Revenue (Expense), Net
OTHER REVENUE (EXPENSE), NET The Company recorded in 2022 a total net expense of R$1.8 billion, mainly due to: (i) the accounting provision related to the geological event in Alagoas in the amount of R$1.5 billion related to the natural evolution of the work fronts and complementary provisions throu
Slide 31: Other Revenue (Expense), Net table
(OTHER REVENUE (EXPENSE), NET* 2022 2021 R$ million ) 8) (OVO) Other Revenues PIS and COFINS credits — exclusion of ICMS from the calculation basis - 4031 -100% Fines, imprisionments and indemaities 120 63-90% Taxes 123 20-41% Reversal (provision) for damages - Alagoas : - na. Others 265 231___15% ‘
Slide 32: Accounting effect of realization of inventories
[26] Accounting effect of realization of inventories in accordance with accounting standard CPC 16 (Correlation to International Accounting Standards - IAS 2).
Slide 33: Financial result
Financial expenses: 4% decrease compared to 2021, mainly explained by (i) the lower amortization of transaction costs associated with prepayments, which were higher in the previous year; and (ii) lower expenses with derivatives due to the settlement of derivatives in 2021. Financial income: increase
Slide 34: Net Income/Loss, Dividends and Investments
NET INCOME/LOSS In 2022, the Company reported a net loss attributable to the shareholders of R$336 million. DIVIDENDS On April 19, 2022, the Company's Ordinary and Extraordinary General Meeting approved the distribution of dividends of R$1.35 billion, in addition to the R$6.0 billion that had been d
Slide 35: Main investments in 2022
In 2022, the main investments related to Braskem’s Sustainable Development Macro-Objectives were (i) the project to expand green ethylene production capacity at the Triunfo Petrochemical Complex in Rio Grande do Sul; (ii) projects associated with reducing CO2 emissions and energy efficiency of the p
Slide 36: Investments in 2023
Investments in 2023 The investments planned by Braskem (ex-Braskem Idesa) to be made during 2023 amount to R$4.0 billion (US$724 million), which can be classified as follows: § Operating investments in the amount of R$3.6 billion (US$650 million), mainly explained by (i) the scheduled maintenance sh
Slide 37: Total projected investment
The total projected investment of R$4.0 billion (US$724 million) includes R$1.1 billion (US$194 million), 27% of the total investments planned for the year, for investments aligned to Braskem’s Sustainable Development Macro-Objectives.
Slide 38: Braskem Idesa investments
Braskem Idesa The investment estimated to 2023 by Braskem Idesa is of R$618 million (US$112 million). The operating investments are mainly allocated to projects related to operating efficiency, such as maintenance, productivity and HES. Meanwhile, strategic investments refer to the continuing strate
Slide 39: Debt Maturity Profile and Rating
DEBT MATURITY PROFILE AND RATING BRASKEM (ex-Braskem Idesa) On December 31, 2022, gross corporate debt stood at US$6.8 billion, composed of 96% long-term maturities and 4% short-term maturities. The corporate foreign currency-denominated debt corresponded to 87% of the Company's total debt at the en
Slide 40: Local market funding operations
In line with the strategy to maintain a robust cash position and due to the volatile and unstable scenario for carrying out funding operations in the international market in 2022, Braskem returned to tap the local market, issuing four operations in the total amount of R$3.7 billion. In January, the
Slide 41: Debt Profile (US$ million)
Debt Profile (US$ million) 12/31/2022 28% 23% 4% 7 12/31/2022 2023 2024 2025 2026 2027 2028 2029 2030/2031 2032 onwards Cash Hi Invested in R$ [lj Invested in US$ [MJ Local Currency [Mj Foreign Currency [ij Sustainability linked loan? [J Standby 1 Does not consider the amount of US$34 million destin
Slide 42: Risk-rating agencies
Risk-rating agencies In December 2022 and January 2023, S&P Global Ratings and Fitch Ratings, respectively, reaffirmed Braskem's rating at 'BBB-'/'brAAA', with a stable outlook. Thus, at the end of 2022, the Company remained an investment grade company by S&P Global Ratings and Fitch Ratings and abo
Slide 43: Braskem Idesa debt
Braskem Idesa On December 31, 2022, the average debt term was around 7.8 years, with 92% of maturities due after 2029. The weighted average cost of the Braskem Idesa’s debt was exchange variation plus 7.3% p.a.
Slide 44: Braskem Idesa Debt
Braskem Idesa Debt Dec/22 Dec/21 Cho. US$ million a B) A)/(B) Gross Debt 2,180 2,206 -1% nS ~ - 72. in US$ 2,180 2,208 “1% (©) Gash and Cash Equivalents 419 318__32% RS = - 7d. in US$ 419 318 32% (=) Net Debt 1761 1,888 -7% nS = - Ta. in US$ 1,761 1,888 7% Recurring EBITDA (LTM)+ 264 622 58% Net Deb
Slide 45: Rating
Rating On November 29, 2022, S&P Global Ratings revised the outlook for Braskem Idesa S.A.P.I. from stable to negative and confirmed its credit rating at 'B+'.
Slide 46: Transform For Value Program
b. Transform For Value Program The Transform for Value program works with a methodology for measuring and consolidating the value of initiatives that make up 5 different pipelines: (i) continuous improvement; (ii) transformation office; (iii) digital center; (iv) competitiveness & productivity capex
Slide 47: Digital Transformation and Industrial Decarbonization Program
In addition, one-third of the US$353 million/year can be associated with Digital Transformation initiatives, which make relevant use of digital technologies in their scopes, such as: automation and instrumentation, new software and systems, advanced analytics, machine learning, cloud services, etc.
Slide 48: New green ethylene plant in Thailand
b. Building a new green ethylene plant in Thailand (MOU with SCG Chemicals) Execution of a memorandum of understanding with SCG Chemicals to conduct feasibility studies for a joint investment in the construction of a new green ethylene plant in Thailand. [29] Marginal Abatement Cost Curve
Slide 49: Green ethylene licensing and bioMEG joint venture
c. Joint licensing of green ethylene technology (partnership with Lummus Technology) Partnership to develop and license Braskem's technology for the production of green ethylene. The partnership (i) brings complementary expertise to accelerate Braskem's commitment to reach 1.0 million tons of Green
Slide 50: Plastic Waste Elimination
Finally, with regard to the macro-objective of Plastic Waste Elimination, the Company achieved 3.3% of its 2020-2030 commitments.
Slide 51: Post-employment benefits
Post-employment benefits § Brazil: 93.5% of employees of the Company participate in the pension plan that pays pension and retirement amounts that complement the amounts paid by the Brazilian government’s official pension system. In addition to the pension plan, the Company employees and their depen
Slide 52: Income Statement (R$ million)
Income Statement (R$ million) 2022 2021 Change CONSOLIDATED (a) (B) (A)/(B) Gross Revenue 111,716 122,860 9% Net Revenue 96,519 105,625 9% ‘Cost of Good Sold (85,161) (73,568) 16% Gross Profit 11,359 32,057 -65% Selling and Distribution Expenses (2,108) (2,056) 3% Loss for impairment of accounts rec
Slide 53: Recurring EBITDA Statement (R$ million)
Recurring EBITDA Statement (R$ million) 2022 2021 Change CONSOLIDATED: (A) (B) (A)/(B) Net Profit (820) 13,962 na. Income Tax / Social Contribution 868 3,999 -78% Financial Result 4,25 8,083 48% Depreciation, amortization and depletion 4,733 4178 13% Cost 3,515 3,077 14% Expenses 1,218 1,102 11% Bas
Slide 54: 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