Braskem SA Q2 FY2024 earnings call

• Financial Highlights: Recurring EBITDA was $320 million in the second quarter of 2024, a 39% increase from the previous quarter and 128% higher than the second quarter of the previous year. Operating cash generation increased by 9% compared to the last quarter, recording $214 million, while recurring cash generation was positive at $69 million. • Operational Performance: Geographic diversification of petrochemical plants helped maintain customer service and mitigate shutdown effects. Brazil production was impacted by extreme weather but balanced by other plants. US and Europe had maintenance shutdowns. Mexico faced ethane supply issues and a polyethylene plant shutdown. • Strategic Initiatives: Construction of the ethane import terminal in Mexico reached 75% progress. Strategic partnership with Solví and GRI signed. Decarbonization initiatives with Veolia and large batteries, first sale of circular PP, and HLR tests with Petrobras.

Brazil Segment: Recurring EBITDA was $231 million for the quarter, an increase of 10% compared to the previous quarter. United States and Europe Segment: Recurring EBITDA was $46 million in the second quarter of 2024, which was 33% lower than the first quarter of 2024. Mexico Segment: Recurring EBITDA was $56 million in the second quarter of 2024, 53% higher than the result for the first quarter of 2024.

• Expectation for the third quarter of 2024: Improved usage rates in Brazil's green polyethylene segment due to resumption of production after weather event. Sales volume expected to increase in Brazil. US and Europe usage rates expected to be in line with previous quarter with resumption of production. Mexico expected to see increased production with stabilized ethane supply. • Spreads: Expect gradual balance in global scenario influenced by logistics restrictions.

• Logistical restrictions from Red Sea conflicts impacting freight rates and spreads. • Potential recession affecting demand growth. • Import competition and need for industrial protection policies.

Q: About Brazil demand, import tariffs, and ABP.

A: Pedro Freitas discussed demand growth, import tariffs, anti-dumping reviews.

Q: Spike in container prices, butadiene.

A: Rosana Avolio talked about freight rates and butadiene prices.

Q: Working capital and CapEx dynamics, Rio Grande do Sul impact.

A: Pedro Freitas discussed CapEx, working cash, and Rio Grande do Sul impact.

Q: Global supply and demand dynamics, Kuwait Investment Authority.

A: Pedro Freitas talked about global supply/demand, capacity, and Kuwait Investment Authority.

Q: Capacity rationalization, cash generation.

A: Pedro Freitas discussed capacity rationalization, cash generation, and ForEx impact.

Q: Scenario planning, feedstock, gas availability.

A: Pedro Freitas talked about scenario planning, feedstock, and gas availability.

Q: Ethane prices.

A: Pedro Freitas discussed ethane prices and future expectations.