Braskem S.a. · BMFBOVESPA:BRKM3
Braskem — APIMEC 2020
72 slides from Braskem's conference presentation, Nov 27, 2020
Slide 1: APIMEC 2020
Slide 2: Disclaimer on Future Statements
DISCLAIMER ON FUTURE STATEMENTS This presentation contains forward-looking statements. Such information is not only historical facts, but they reflect the goals and expectations of Braskem’s management. The words “advance”, “believe”, “expect”, “foresee”, “intend”, “plan”, “estimate”, “project”, “go
Slide 3: Agenda
AGENDA > VV VV VW 2020 Results Pedro Freitas (CFO) Braskem Idesa Stefan Lepecki (CEO of Braskem Idesa) Petrochemical Scenario Rosana Avolio (Investor Relations Leader) Sustainable development Jorge Soto (Leader of Sustainable Development) Transform for Value Celso Procknor (Leader of Transform for V
Slide 4: 2020 Results
2020 Results Pedro Freitas (CFO) > ) Braskem PUBLIC
Slide 5: In 2020, we stayed focused on our five strategic pillars
In 2020, we stayed focused on our five clearly defined strategic pillars cous @ = Braskem as a first quartile operator PRODUCTIVITY AND. COMPETITIVENESS FEEDSTOCK AND SUPPLIER DIVERSIFICATION = Achieve balance between liquid and gas bases, increasing flexibility GEOGRAPHICAL DIVERSIFICATION = Increa
Slide 6: We improved performance in safety and are close to Best in Class
We improved performance in safety and in 2020, we are close to Best in Class 1) Productivity and Competitiven: Personnel Safety - Accident Rate CAF' + SAF? Process Safety - Accident Rate TIER 1 (events/1MM HH") {events/1MM HHP) Benchmarks: ACC# (3.25) and Best in Class (“0.80 - 0.90) Benchmarks: ACC
Slide 7: Industrial operations in Brazil and the US have returned to normal
Industrial operations in Brazil and the US have returned to normal, after a temporary reduction in 2Q20 1) Productivity and Competitiveness Petrochemical Crackers in Brazil PP Plants in the US + Europe PE Plants in Mexico Utilization Rate (%) @ _Vitization Rate (%) ES @ vsizstion rate &) Global Aver
Slide 8: Contracts with Petrobras to supply naphtha to crackers
We signed contracts with Petrobras to supply naphtha to the petrochemical crackers in Bahia and Rio Grande do Sul 1) Produc Highlights: We signed contracts for the supply of petrochemical naphtha for Braskem’s industrial units in Bahia and Rio Grande do Sul > The contracts have a 5-year term after t
Slide 9: Energy modernization projects and renewable energy contracts
We continue to move forward with our energy modernization projects and concluded new contracts that will increase our use of renewable energy Energy Modernization Projects Breakdown of Total Energy Consumption Vesta Project: replacement of steam turbines by high- performance electric motors in the A
Slide 10: We are radically transforming our core
We are radically transforming our core SEE . Pei f yi? u Pag - =< i fenooytand Seertine ‘iene ans Braskem of the near and creating new business models Freight Marketplace The future of freight service, connecting carriers and companies without an intermediary v Customer Portal An e-commerce platform
Slide 11: Feedstock diversification toward balance between oil and natural gas
In the feedstock diversification, we move toward a more balanced profile between oil and natural gas sources 2) Feedstock and Su Feedstock Profile by Production Capacity 4) 80% 2009 2015 2016 2019 2020 HiEthanolli Flex [J Gas [Propylene fj Naphtha Our strategy for diversifying feedstock aims to incr
Slide 12: Supplier diversification through international naphtha agreements
In line with our supplier diversification strategy, we continue to acquire naphtha through supply agreements with international suppliers 2) Feedstock and Su Purchases of Naphtha - Location of Suppliers (%) 20+ suppliers of imported naphtha ]| i 57% 63% E b 2016 2017 2018 2019 (i brazil [imports Thi
Slide 13: Diversified feedstock suppliers abroad
Abroad, we also have a diversified profile of feedstock suppliers @ () Braskem America Braskem Europe Braskem Idesa Busi . ; . . . Modal” Non-integrated PP Business Non-integrated PP Business Integrated PE Business Assets! 6 PP plants 2 PP plants 1 cracker and 3 PE plants Feedstock 100% Propylene 10
Slide 14: Start of commercial production at new US PP plant (Delta)
With regard to geographical diversification, we had one of the most relevant achievements of the year, by starting commercial production at our new PP plant in the US (Delta) 3) Geographical Diversific: Delta Conclusion ) the new plantis located in La Porte, Texas, and has a production capacity of 4
Slide 15: 40% of resins capacity is located outside of Brazil
With Delta’s conclusion, we became an even more global company and now 40% of our total resins capacity is located outside of Brazil 3) Geographical Diversification BRASKEM IS THE LEADER IN THE PRODUCTION OF .» AND THE SIXTH LARGEST THERMOPLASTIC RESINS THERMOPLASTIC RESINS IN AMERICAS... PRODUCER I
Slide 16: In Alagoas, focused on ensuring the safety of people
In Alagoas, we continue focused on ensuring the safety of people 4) People, innovation, Governance and Reputatic SAFETY OF PEOPLE SOLUTION FOR THE GEOLOGICAL PHENOMENON: Collaboration with the investigation for the causes of [ei}a, Removal of residents from risk areas and their the geological phenom
Slide 17: Provisions related to the geological event in Alagoas
Provisions’ related to the geological event in Alagoas 4) People, innovation, srmance and Reputati 1 Provision 2"4 Provision 3" Provision January, 2020 July, 2020 September, 2020 (-RS3.4 billion) (-RS1.6 billion) (-R$3.5 billion) (>) hon la anes ; sane ea : + “$1.7 billion: Support the relocation +
Slide 18: Among the best employers in the Forbes ranking
In people management, we are among the best employers in the Forbes ranking novation, Governance and Reputal 4) Peopl > Braskem is among the 7 Brazilian companies that comprise the list of best employers in the world according to Forbes Forbes intotal, 750 companies from 45 countries make up the ran
Slide 19: Recognized as one of the most engaged in open innovation
We were recognized as one of the most engaged companies in open innovation 4) People, Innovation, Governance and Reputatic > The international platform 100 Open Startups, which connects startups to large companies, announced the ranking of 100 Open Corps, leading companies in open innovation in the
Slide 20: Closure of external monitoring after DoJ and SEC commitments
In the governance part, an important achievement was the closure of external monitoring, after compliance with the commitments assumed with the DoJ and the SEC 4) People, innovation, Governance and Reputatic O} 9020 SATECTE SF coNaUISION oF MAIN DELIVERIES MONITORING ISSUED BY MPF', DOJ? AND ‘SEC >
Slide 21: Positive free cash flow generation
5] Braskem has been presenting positive free cash flow generation; the impact of WC' on cash flow in 2020 is timely and potentially will be reversed at the end of 4Q20 Free Cash Flow Generation (R$ mm) 7,068 3,108 2,247 2,460 | -757 2016 2017 2018 2019 9M20 The change in the feedstock purchase strat
Slide 22: Strong liquidity position, with long-term debt maturity
Strong liquidity position, with most debt with long-term maturity Debt Profile (US$ million) 09/30/2020 APPROXIMATELY 50% OF DEBT DUE AFTER 2030 Led Pies a i wi Ba) st ao 09/30/2020 2020 2021 1022 2023 2025 2026/2027 2028/2029 2030 ca a. Hi investment in R$ J investment in US$ [| Local currency J Fo
Slide 23: Reduction in leverage even in a down cycle
The resilience of our businesses added to our initiatives resulted in a reduction in our leverage, even in a down cycle of the petrochemical industry '5) Capital Allocation / Financial Di Leverage (ex - Braskem Idesa) (us$ MM) Start of the dowt cycle of the > petocienlcal ne The Company's net debt l
Slide 24: Measures to preserve cash and maintain financial strength
We have adopted some measures to preserve cash, maintain financial strength and the resilience of our businesses 5) Capital Allocation / Financial Discipline Initiatives Description Status 4 + Issuance in the total volume of US$600 million, Hybrid Bond " i eit with 50% equity treatment by S&P and Fi
Slide 25: EV/EBITDA multiple is discounted relative to peers
Braskem’s EV/EBITDA multiple is discounted in relation to its Peers 5) Capi EV/EBITDA' Indicator Highlights: Braskem has similar characteristics to its main pear pce peers with public capital, such as: ofthe saree mace } Global company, with industrial and commercial 91 presence in several countries
Slide 26: Braskem Idesa
Braskem Idesa Stefan Lepecki (CEO of Braskem Idesa) > ) Braskem PUBLIC
Slide 27: RECAP: Summary of our business in Mexico
RECAP: Summary of our business in Mexico Idesa (BI) | i Overview: Bra Joint Venture formed by Braskem (75%) and Idesa Group (25%) } Integrated petrochemical complex for the production of ethylene, high and low density polyethylene in the city of Nanchital, state of Veracruz ) Production capacity: “1
Slide 28: Braskem Idesa is an important asset for industry and Mexican economy
Braskem Idesa is an important asset for the petrochemical industry and the Mexican economy Braskem Idesa (BI) PE market vs. Capacity of Braskem Idesa Commitment to Mexico: (kt/year) > Braskem Idesa has made Mexico’s largest private ¥ cn industrial investment in the last 30 years (US$5.2 billion) Bra
Slide 29: Strategic differentials of Braskem Idesa
Braskem Idesa has strategic differentials that makes the business one of the most competitive in the petrochemical sector Bra: Idesa (BI) Integrated and global scale complex Commercially competitive and diversified » Low cost petrochemical complex with “state-of-the-art” Strategic geographical posit
Slide 30: Information about the feedstock supply contract
Information about the feedstock supply contract Idesa (BI) | il * The ethane supply agreement between Braskem Idesa and Pemex was the result of an international public auction process in which more than 30 Mexican and international companies participated + Braskem Idesa was the winner for offering t
Slide 31: Plan to increase ethane supply; ethane imports from the US
A clear plan to increase the supply of Ethane in the country; In Feb/20, we started to import ethane from the US Idesa (BI) i PE Plants in Mexico Capacity Total (kpba) Utilization Rate (%) lacie 2 In 2Q20 and 3020, 13% of the Fast Track II (Expansion) 413 +25 Start of ethane imports from utilization
Slide 32: Strong free cash flow and EBITDA margin
Similar to previous years, Braskem Idesa has been showing strong and positive free cash flow generation and EBITDA Margin, even in a adverse scenario Bra: Idesa (BI) International Spreads PE - Ethane Free Cash Flow Generation and EBITDA Margin (Us$/ton) (R$ MM and %) 4115 1,185 1,221 55% sore — 489%
Slide 33: Braskem Idesa Debt Profile and Leverage
Idesa (BI) Braskem Idesa Debt Profile 09/30/2020 (uss mm) 37% 17% 9% oe a7 ry = i 09/30/20202020 2021 2022 2023 2024 2025/ 2027/ 2029 Cash 2026 2028 [il investment in USS [J Project Finance Guarantees’ (Gil Foreign currency ‘Source: Braskem. Note (1): Refers to the usual guarantees ofthe financing t
Slide 34: Braskem Idesa priorities for 2021
Braskem Idesa priorities for 2021 Idesa (BI) | * Complete the expansion of the Fast Track ethane import project from 12 kbpd' to 25 kbpd' * Approve and start the construction of the project to develop an Ethane Import Terminal and a pipeline to transport it to the BI petrochemical complex + Enable c
Slide 35: Petrochemical Scenario
Petrochemical Scenario Rosana Avolio (Investor Relations Leader) > ) Braskem PUBLIC
Slide 36: Brazil: economic improvement may offer opportunity in domestic market
In Brazil, the expectation for an improvement in the economic scenario may offer an opportunity to transfer export products to the domestic market Petrochemical Scenari Growth in Brazilian GDP* Demand for Resins? in Brazil Average Exchange Rate? % @ wT Growtin demandin 2020, @ sss oo even with retra
Slide 37: Control of COVID spread is key to economic recovery abroad
Abroad, the control of the spread of COVID is a key factor in driving economic recovery Us GDP growth’ % —Braskemiseaderin PP intheus @&}_% —_raskemis leaderin PEin Mexico 3.7% 2.2% 29% — 2.2% 6.1% Growth in Mexican GDP* 2.0% 2.0% a GDP growth in the European Union" 1.3% ~0.3% “9.0% 8.6% 2017-2018 ~
Slide 38: Feedstock price difference between naphtha and ethane may decrease
In 2021, the difference between the prices of the main petrochemical feedstock (naphtha and ethane) may decrease, increasing the competi Cendrio Petroquimico iveness of naphtha-based producers Oil (Brent)' Natural Gas (Henry Hub)' Naphtha ARA' and Ethane Mont Belvieu' $/bbl @ ser g veo 8 —*— Naphtha
Slide 39: China will concentrate capacity additions
According to consultancies, China will concentrate capacity additions; however, delays/cancellations of projects may occur, reducing excess supply Petrochemical Scenari Growth in Supply/Demand - PE" Growth in Supply/Demand - PP" Growth in Supply/Demand - PVC" Capacity Additions by Region and Demand
Slide 40: PE and PP operation rates may be impacted by new capacities
PE and PP operation rates may be impacted by new capacities, whereas growth is expected in PVC Petrochemical Scen: PE’ Global Utilization Rate PP" Global Utilization Rate PVC' Global Utilization Rate “ re 8 36% 87% «= 87% (%) 98 84% 33% —— 82% 32% 83% ae | 78% 81% 82% 74% 76% 2017-2018 +=—«2019-«202
Slide 41: PE spreads can be pressured if capacity additions go into operation
PE spreads can be further pressured if all expected capacity additions actually go into operation Petrochemical Scenari Spread PE USA — Ethane Mont Belvieu' Spread PVC Asia’ - Naphtha ARA/EDC USA Spread PE USA—Naphtha ARA' uss/t © uss/t © (se) usst (5) gog 812 913 2202 Last ties 1221 8 B60" war B2 8
Slide 42: US remains the most profitable region for PP spreads
In relation to the PP spreads, the US remains the most profitable region Petrochemical Scenari Spread PP USA — Propylene USA’ Spread PP Europe— Propylene Europe’ Spread PP Asia - Naphtha ARAT uss/t &S uss/t ~) uss/t ©@ 1,852 1,534 1,206 1487 4s7L 1,489 pag 1,347 107 1,034 1,017 1,363 1,170 aase apg
Slide 43: Sustainable development
Sustainable development Jorge Soto (Leader of Sustainable Development) > ) Braskem PUBLIC
Slide 44: Always seeking innovative and sustainable solutions
ALWAYS seeking INNOVATIVE AND SUSTA SONS Creation of Formula 1 trophy with recycled resin from ‘material collected during the qualifying session \By 2007 { green 2002 Launch ofthe fs polythene \. aquapolo ‘made with 100% renewable ss A resources and the fst ethylene CREATION pore ian OF BRASKEM 2010
Slide 45: Sustainability timeline (2014-2018)
(#2...) (PST \ @MPANY Made In Space partner to produce objects by 3D printing from green plastic, 2014 Braskem is appointed as one of the 50 most Innovative companies in the world by Fast. Company magazine, acknowledged for its research in bio-based products, Start of green EVA production. Plastic c
Slide 46: Sustainability timeline (2019-2020)
Partnership with the Philadelphia Eagles team for collection, recycling and education project. Obata 2019 Inauguration of a bio MEG plant in Copenhagen. Signatory of the Alliance to End Plastic Waste. Solvent development from renewable source. Partnership with Join the Pipe to distribute plastic bot
Slide 47: 2020: years of Green PE - I'm Green
2020: 10 years of Green PE - I’m Green AWARDS Braskem’s plastic made out of a renewable feedstock: sugar cane Chemical Week: Best sustainable initiative at the Chemical Industry Production 299 KTA Financial Outlook & capacity of Sustainability Forum & Awards 2020. Equivalents to Recognized by the Ec
Slide 48: Global Policy of Sustainable Development
GLOBAL POLICY of SUSTAINABLE development For us, acting sustainably is to meet the needs of all parties, considering the immediate and future impacts. This is what guides all our activities and our relationships with all the public. The Policy sets a clear Governance structure, which involves the Bo
Slide 49: Policy relies on strategic pillars for its implementation
_ ili OUR POLICY RELIES ON ir STRATEGIC PILLARS FOR ITS IMPLEMENTATION PURPOSE Improve people's lifes 1) gessecitees creating sustainable more Sustainable solutions of chemicals and plastics 5 Portfolio of products and 4} services more sustainable C ‘Solutions to allow society to Strong culture and
Slide 50: Braskem macro sustainable development goals
BRASKEM MACRO SUSTAINABLE Development GOALS ‘Asa result of a long and structured consultation process considering the vision of our target audience, relevant topics to our materiality matrix and the UN Sustainable Development Goals (SDG), we have outlined our own macro goals that guide our attention
Slide 51: Improved environmental impacts in our plants
WE IMPROVED THE ENVIRONMENTAL IMPACTS IN OUR PLANTS SINCE 2002 UP UNTIL 2020 (ESTIMATED) ENERGY CONSUMPTION ‘WASTE WATER ‘WASTE (a/t) {m?/t) (ke /t) -A% eee 36% Ay 33% (ee consumption oF water generated By, A ee 23 million 31 million people Hf aii. houses per year inone month Ree CARBON EMISSIONS IN
Slide 52: Private social investment projects
PRIVATE SOCIAL investment PROJECTS Project for the promotion of social inclusion and social and economic development of waste collectors and strengthen work of cooperatives: Increase post-consumption waste sent for recycling. Training, improving waste collectors’ work environment and increasing thei
Slide 53: Volunteering Program
Source: braskem : Al VOLUNTEERING Program SERVING TOGETHER TO IMPROVE PEOPLE'S LIVES The was set up as an opportunity to generate positive social and environmental impact in the surrounding of our operations a1 transform lives from practical work of our members in volunt ions. Volunteers may partici
Slide 54: Acknowledgments
ACKNOWLEDGMENTS Proud to be Braskem as, Global Compact ~aft SER = @LEAD ROBECOSAM@® indice CDP Brasil Resiligncia Climatica gcopa-70) ° Diversidade PUBLIC
Slide 55: New cycle of long term improvements
New cycle of long term improvements Has started (2021-2025/2030/2050) 1 - Health and Safety 7 - Sustainable Innovation 2 - Financial and Economic Results 6 - Social Responsibility and Human Rights 3 - Plastic Waste 4 - Climate Change 5 - Operational Eco-Efficiency Source: braskem Dimension PUBLIC
Slide 56: A strong ambition
A strong ambition In combating climate change and eliminating plastic waste MITIGATING CLIMATE CHANGE ELIMINATING PLASTIC WASTE (& Achieve carbon neutrality by 2050 Provide a 15% reduction in carbon emissions by 2030 2008-19 Most of the emissions reduction due to energy efficiency projects Carbon Ne
Slide 57: Clear and flexible strategy to capture opportunities
We have a clear and flexible strategy to capture the best opportunities in... EMISSIONS REDUCTION EMISSIONS OFFSET EMISSIONS CAPTURE + Reduction of emissions * Offsetting emissions with : CARBON focusing on energy efficiency, _ potential investments in the NEUTRALITY and increasing the use of produc
Slide 58: Together, we will build a carbon neutral circular economy
Braskem_ ~) TOGETHER, WE WILL BUILD A CARBON NEUTRAL CIRCULAR ECONOMY
Slide 59: Transform for Value
FOR VALUE > ) RS Celso Procknor Braskem PUBLIC
Slide 60: Industry and Braskem contexts require greater efficiency
Industry and Braskem contexts require, at the same time, greater efficiency in the allocation of our resources and enabled the possibility of capturing synergies CONTEXT OF THE INDUSTRY AND BRASKEM AT THE BEGINNING OF 2020 DOWNTURN OF THE RECOVERY COMPAN' PETROCHEMICAL INDUSTRY OF INVESTMENT GRADE R
Slide 61: Launch of Transform for Value program
In this scenario, we launched Transform for Value, a program that aims to @ coordinate, accelerate and focus on the company’s main improvement initiatives Consolidate Visions Prioritize Resources Similar to the forms of a Transformation Office, the program has 4 main goals: Communicate Results Imple
Slide 62: Consolidated vision of improvement initiatives
The consolidated vision of the improvement initiatives currently spread throughout the organization will encompass actions of various types and areas Source: braskem SOURCES OF TRANSFORMATIONAL OR IMPROVEMENT INITIATIVES TRANSFORM FOR \ + Initiatives with pro; allocation i DIGITAL CENTER + Initiativ
Slide 63: Example of initiative: Forecast-to-Stock and Order-to-Cash redesign
Example of initiative: Redesign of Forecast-to-Stock and Order-to-Cash processes in SAM Projected gains with FTS and OTC redesign in RS MM/year 400 ins fom veneer by svlang os fale Gains from increased product ee oe by and eed ———_ ington - Gain Fam redaction nes =i employed ord inestoy E Eo carryin
Slide 64: Example of initiative: Reliability days
Example of initiative: @ Reliability days > loss and maintenance cost reduction BENCHMARK STUDY SHOWED THAT A SIGNIFICANT PART OF BRASKEM ASSETS ARE POTENTIAL GAINS WERE BROKEN DOWN BY ASSETS IN THE 30/4%2 QUARTILES IN COST OR EFFECTIVENESS OF MAINTENANCE AND BY CAPTURE TYPE Potential gains, by regi
Slide 65: Throughout 2021, more details on the improvement pipeline
Throughout 2021, we will bring more details about the evolution of the improvement pipeline and some of the initiatives we are implementing at Braskem —_— Transform for Value Communication about ReSraenication is announced the program to the 9 in-house outside public jon on goals ary results a1 2021
Slide 66: 2021 Priorities
2021 Priorities Roberto Simdes (CEO) > ) Braskem PUBLIC
Slide 67: Focused on growth opportunities, new business, sustainability and innovation
Braskem continues focused on seeking opportunities for growth, having a vast portfolio of new business projects, sustainability and innovation lat ‘NEW BUSINESS Advancement of the ventures we developed to try out new business models, such as: + An e-commerce platform for customers to manage thelr or
Slide 68: Outlook Braskem 2021 versus 2020
OUTLOOK BRASKEM | 2021 VERSUS 2020 Utilization Rate (PE) ramp-up of “fast Sales volume BD _ track” project Petrochemical spreads Fixed Cost 8 Recurring EBITDA ®» Crackers Utilization Demand growth in Utilization Rate (PP) t Rate Brazil Sales volume Shifting product from Sales volume t New PP plant e
Slide 69: Sustainability more prominent in corporate strategy from 2021
Starting in 2021, Sustainability will be even more prominent in our corporate strategy PRODUCTIVITY "AND RATIONALE: COMPETITIVENESS + Braskem’s business strategy is focused on sustainable development since its Sune creation in 2002 SUPPLIER + The Company has a broad portfolio of investments in proje
Slide 70: Our priorities for 2021
Our priorities for 2021 PRODUCTIVITY AND COMPETITIVENESS FEEDSTOCK AND. SUPPLIER DIVERSIFICATION GEOGRAPHICAL DIVERSIFICATION PEOPLE, INNOVATION, GOVERNANCE AND. REPUTATION SUSTAINABILITY CAPITAL ALLOCATION / FINANCIAL SOUNDNESS GOALS o Continue improving performance in the safety of people and proc
Slide 71: Slide 71
Slide 72: Forward-looking statements notice (Form 6-K)
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