Braskem S.A. Q4 FY2025 earnings call

• 2025 petrochemical industry impacted by prolonged down cycle, Brazilian petrochemical complexes utilization rate 4 percentage points lower than previous year. International businesses in US and Europe had utilization rates in line with 2024, Mexico had lower production due to maintenance shutdown. - Safety: Global accidental frequency rate was 0.80 events per million hours worked, second lowest since 2002. - Financial results: Recurring consolidated EBITDA in Q4 2025 was $109 million, full year $557 million. Operating cash flow: $13 million in Q4, $246 million for the year. Corporate cash at end of 2025 totaled ~$2.1 billion, corporate leverage ~14.74 times. - 2025 global macroeconomic environment volatile, Brazil resin demand declined 2% in 2025 after 60% growth in 2024, same movement in US. - Adopted over 70 action plans across six major fronts to mitigate downturn cycle. - In Alagoas, relocation and compensation program completion high, salt active cavities sealing and monitoring ongoing, total provision for Alagoas event ~18 billion reais, remaining provision ~3.5 billion reais at end of Q4 2025. - Strategic direction for 2026 - 2028: Reinforce strategy pillars, including capital structure reorganization, resilience and financial soundness initiatives, transformation initiatives. 2026 priorities: Capital structure reorganization, implementation of resilience plan, transformation plan initiatives, expand green profit portfolio, comply with Alagoas agreements, emphasize safety.

Brazil segment: Recurring consolidated EBITDA in 2025 was $698 million, 22% lower than 2024, mainly due to lower resin and chemical sales volumes and lower average spreads, partially offset by depreciation of Brazilian Real and cost reduction initiatives. United States and Europe segments: Recurring EBITDA for the year was negative $52 million, impacted by lower polypropylene spreads in Europe, inventory effects on cost of goods sold in the United States, and reclassification of expenses. Mexico segment: In Q4 2025, polyethylene utilization reached 85%, an increase from Q3, but for the year utilization was 64%, a reduction from 2024. Recurring EBITDA for this segment was $2 million, decline due to lower product availability from shutdown and lower international polyethylene ethane spreads.

• Despite global instability in 2026, need to assess risks and opportunities and preserve company liquidity. - Continue with capital structure reorganization, implementation of resilience plan,推进 transformation plan, expand green profit portfolio, etc. - Monitor developments in geopolitical conflict and their potential effects on costs, spreads and competitive dynamics.

• Global macroeconomic volatility combined with prolonged petrochemical down cycle resulting in lowest industry operating rates in decades. - Middle East geopolitical tensions causing greater volatility in commodity prices, especially Brent crude oil and naphtha, additional pressures on international freights. - Potential logistical restriction of Strait of Hormuz could reduce global supply of polyethylene by 6 - 19 million tons and polypropylene by 7 - 10 million tons, affecting different regions differently.

Q: Considering the current context, could you provide a view of how the global industry has behaved Have you seen reduction of relevant capacity or events of first measure impacting the business?

A: The company doesn't provide formal guidance, but refers to historical EBITDA and external consultancy services. Middle East conflict has complex impacts, need to consider various scenarios.

Q: I know that the company does not provide the formal guidance, but what would be the effect of the war on the EBITDA of the company? Could we expect an EBITDA about $1 billion?

A: The company doesn't provide formal guidance. Based on historical consolidated EBITDA between 2014 - 2025 and external consultancy, impact is complex and depends on multiple factors.

Q: In previous year, have you managed to, you have been able to diversify the purchase of NAFTA, reducing the exposure of NAFTA for Petrobras? The lower availability of NAFTA has been affecting your feedstock considering the global price at a global level.

A: Braskem is the biggest buyer of NAFTA in the world. Sourcing is not at risk at source but impacted by price. Aim to reduce dependency on NAFTA by 2030, exploring other feedstocks like ethanol, propane, etc.

Q: With the default of the bonds of interest rates and the lower ratings to do and possible reorganization via Chapter 11, what's the real likelihood of this scenario to materialize? What are the next steps and what would impact and the consequences of Chapter 11 in the Consolidated Balance Sheet and in the control of its assets.

A: The company has hired legal and financial advisors to reorganize Braskem Deza's capital structure. Progress is ongoing and will share material information in real time.

Q: What was the result of the meeting that was held yesterday? And will the new protections be implemented? And the current logistics restrictions rate increases and production restrictions, can they reduce the possibility of using anti-dumping actions in Brazil?

A: GSEC opted to maintain the protection granted by the provisional anti-dumping law from six months ago. Braskem will appeal the decision as the anti-dumping case is strong.

Q: Why there are questions in the capacity to continue operating as we saw in the financial report of Braskem?

A: The company's auditors raise uncertainties about significant or less significant uncertainties about any plan. But the company has a defined plan for capital structure reorganization and will implement it.

Q: The company announced investment in the Transforma Hill project and continues with strategic investments. Considering the high leverage and cash flow, how is the company going to finance this CAPEX without affecting its capital structure? Was there any re-evaluation in the scope of those investments?

A: The capital structure reorganization includes resources for the Transforma project. The project is integrated with feedstock changes and is considered in financing.

Q: What we have seen has increased and what are the potential impacts since the closure of the Strait of Hormuz on petrochemical spreads?

A: The company considers different scenarios. If oil prices go up, NAFTA price will be higher. There's a working capital consumption from payables. External consultancies expect an increase in spreads in Q1 2026. The length of price rise depends on Iran conflict duration.

Q: Could the company provide an update on the latest facts about the potential change of control?

A: There was public information about CADE and US negotiations. Braskem is not party to discussions and will notify market timely when notified.

Q: Could you provide more information on Petrobras? Could there be any type of support from Petrobras to Braskem, considering that the transaction with IG4 has been approved and the new shareholder's agreement is likely to be signed briefly.

A: Petrobras holds a relevant stake in Braskem, has monthly board meetings and regular communication. Discussions on support remain ongoing and parallel regardless of shareholder situation.