Braskem S A : 2023 Annual Audited Financial Statements

Braskem

Braskem

Consolidated and individual financial statements

for the year ended December 31, 2023 and independent auditor's report

KPMG Auditores Independentes Ltda.

Rua Verbo Divino, 1400, Conjunto Térreo ao 801 - Parte, Chácara Santo Antônio, CEP 04719-911, São Paulo - SP Caixa Postal 79518 - CEP 04707-970 - São Paulo - SP - Brasil Telefone [phone]

kpmg.com.br

Independent Auditor's Report on the Individual and Consolidated Financial Statements

To Shareholders, Members of the Board and Management of Braskem S.A.

Camaçari - Bahia

(A free translation of the original report in Portuguese, as filed in the Brazilian Securities and Exchange Commission ("CVM"), containing individual and consolidated financial statements prepared accordance with Accounting Practices Adopted in Brazil and with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB)).

Opinion

We have audited the individual and consolidated financial statements of Braskem S.A. ("the Company"), respectively referred to as Parent and Consolidated, which comprise the statement of financial position as of December 31, 2023, and the related statements of profit or loss, other comprehensive income (loss), changes in equity and cash flows for the year then ended, and notes, including material accounting policies and other explanatory information.

Opinion on the individual financial statements

In our opinion, the accompanying individual financial statements present fairly, in all material respects, the financial position of the Braskem S.A. ("the Company") as of December 31, 2023, and of its financial performance and its cash flows for the year then ended in accordance with Accounting Practices Adopted in Brazil.

Opinion on the consolidated financial statements

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Braskem S.A. as of December 31, 2023, and of its consolidated financial performance and its cash flows for the year then ended in accordance with Accounting Practices Adopted in Brazil and with International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB).

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the individual and consolidated financial statements section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical requirements included in the Accountant Professional Code of Ethics ("Código de Ética Profissional do Contador") and in the professional standards issued by the Brazilian Federal Accounting Council ("Conselho Federal de Contabilidade") and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

Key audit matter is the matter that, in our professional judgment, was the most significant in our audit of the current period. This matter was addressed in the context of our audit of the individual and consolidated financial statements as a whole, and in forming our opinion on these individual and consolidated financial statements, and therefore, we do not provide a separate opinion on this matter.

Evaluation of the provision and disclosures related to the geological event in Alagoas

See the note 24 to the individual and consolidated financial statements

Key audit matter	How our audit conducted this issue
As of December 31, 2023, the Company presents in its	Our audit procedures included, but were not limited to:
financial statements a balance of provision "Geological	- We evaluated the design, implementation and
event - Alagoas", linked to obligations arising from the
effectiveness of internal controls we judged to be key
geological event related to the extraction of salt in Alagoas,
controls related to Company's provision estimate
assumed under Terms of Agreement, signed with
process, including the evaluation of information from
government authorities, which include, among other
external specialists, as well as the controls over the
obligations, actions for monitoring and stabilizing the salt
disclosures in the individual and consolidated financial
mining wells related to these activities. The Company also
statements;
discloses legal proceedings for which an unfavorable
outcome is considered possible related to the same	- We evaluated, with the support of our specialists in
matter.	infrastructure: (i) the technical appraisal reports
In determining the provision for estimated future	prepared by the Company's external experts regarding
the monitoring and stabilization of the salt mining wells;
disbursements on monitoring and stabilizing the salt
(ii) the action plan established by the Company's
mining wells, the Company's management uses the results
management; and (iii) the main costs estimated for
of sonars measurements and information from technical
monitoring and stabilizing the salt mining wells;
studies conducted by external companies specialized in
geology, geomechanics and engineering, which are	- We obtained legal confirmations, received directly from
relevant for determining the technical solutions of the	the Company's external legal counsel, that included
actions required for monitoring and stabilizing these salt	their assessment on the risk of loss and the estimation
mining wells.	of the amounts involved in legal proceedings related to
	the geological event - Alagoas;
	- We inquired the Company's management about the
	other obligations related to the geological event -

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

	Alagoas and we inspected internal and external
	documents related to the matter; and
	-
	- We evaluated whether the disclosures in the individual
	and consolidated financial statements consider the
	relevant information related to the provisioned
Due to the high level of judgment and uncertainties	amounts, as well as the relevant information related to
legal proceedings with possible risk of loss.
inherent in determining technical solutions and costs
estimated for monitoring and stabilizing the salt mining	During our audit, we identified adjustments that, although
wells, which will be used as assumptions for measuring the	immaterial, would affect the measurement and disclosure
Company's obligations, as well as due to the level of	of the provision for the geological event - Alagoas, which
relevance and complexity in evaluating the estimate of the	were not recognized by management.
likelihood of outflows of economic benefits and related
disclosures, originating from lawsuits related to the	Our tests revealed deficiencies in the operating
extraction of salt in Alagoas, we considered this subject as	effectiveness of internal controls related to the provision
a key audit matter.	for the geological event - Alagoas. As a result, we
	expanded the extent of our substantive procedures, in
	addition to what was originally planned, to obtain
	sufficient and appropriate audit evidence in relation to the
	provision for the geological event - Alagoas.
	Based on evidence obtained from the procedures
	summarized above, we consider acceptable the level of
	provision for the expenses associated with monitoring and
	stabilization of the salt mining wells and the financial
	obligations linked to the legal proceedings related to the
	geological event - Alagoas, as well as related disclosures in
	the context of the individual and consolidated financial
	statements taken as a whole, for the year ended December
	31, 2023.

Other matters

Statements of value added

The individual and consolidated statements of value added (DVA) for the year ended December 31, 2023, prepared under the responsibility of the Company's management, and presented herein as supplementary information for IFRS purposes, have been subject to audit procedures jointly performed with the audit of the Company's financial statements. In order to form our opinion, we assessed whether those statements are reconciled with the financial statements and accounting records, as applicable, and whether their format and contents are in accordance with criteria determined in the Technical Pronouncement 09 (CPC 09) - Statement of Value Added issued by the Committee for Accounting Pronouncements (CPC). In our opinion, the statements of value added have been fairly prepared, in all material respects, in accordance with the criteria determined by the aforementioned Technical Pronouncement, and are consistent with the overall individual and consolidated financial statements.

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Audit of prior year's financial statements

The individual and consolidated statement of financial position as of December 31, 2022 and the individual and consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows and related notes for the year then ended, presented as comparative amounts in the individual and consolidated financial statements of the current year, were previously audited by other independent auditors, who issued an unmodified opinion on March 22, 2023. The comparative amounts related to the individual and consolidated statements of value added (DVA) for the year ended December 31, 2022, were submitted to the same audit procedures by those independent auditors and, based on their examination, those auditors issued an unmodified opinion.

Other information accompanying the individual and consolidated financial statements and the auditor's report

Management is responsible for the other information comprising the management report.

Our opinion on the individual and consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the individual and consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the individual and consolidated financial

statements

Management is responsible for the preparation and fair presentation of the individual financial statements in accordance with Accounting Practices Adopted in Brazil, and consolidated financial statements in accordance with Accounting Practices Adopted in Brazil and with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the individual and consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company and subsidiaries or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's and subsidiaries financial reporting process.

Auditors' responsibilities for the audit of the individual and consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Brazilian and international standards on auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

As part of an audit in accordance with Brazilian and international standards on auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the individual and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
  Company's and its subsidiaries internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and its subsidiaries ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the individual and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.
  Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company and subsidiaries to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the individual and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the individual and consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, including, when applicable, the actions taken to eliminate the threats or safeguards applied by the Company.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the individual and consolidated financial statements of the current period and are therefore the key audit matter. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

São Paulo, March 18, 2024

KPMG Auditores Independentes Ltda.

CRC 2SP014428/O-6

Original report in Portuguese signed by

Fernando Rodrigues Nascimento

Accountant CRC 1SP244524/O-1

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Braskem S.A.

Statement of financial position at December 31

All amounts in millions of Reais

			Consolidated				Parent company
Assets	Note	2023	2022	2023	2022
Current assets
Cash and cash equivalents	5	14,187	12,466	8,658	4,187
Financial investments	6	4,956	2,295	4,812	2,129
Trade accounts receivable	7	2,910	3,232	2,971	2,978
Inventories	8	12,532	14,030	9,263	10,137
Taxes recoverable	10	1,461	1,156	783	863
Recoverable income taxes	21.1	428	392	223	315
Derivatives	19.5	137	158	70	57
Other receivables		830		728		610		574
		37,441	34,457	27,390	21,240
Non-current assets
Taxes recoverable	10	1,370	1,618	1,073	1,182
Recoverable income taxes	21.1	292	253	292	253
Deferred tax assets	21.2	6,443	6,359	5,846	5,771
Judicial deposits		178	215	169	206
Derivatives	19.5	210	72	132	72
Other receivables		309	188	119	115
Investments	11	165	149	21,909	22,761
Property, plant and equipment	12	38,405	37,763	16,430	16,868
Intangible assets	13	3,108	3,022	2,576	2,561
Right of use of assets	14 (a)	3,820		3,953		2,175		2,225
		54,300		53,592		50,721		52,014
Total assets		91,741		88,049		78,111		73,254

The notes are an integral part of the consolidated and parent company financial statements.

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Braskem S.A.

Statement of financial position at December 31

All amounts in millions of Reais

				Consolidated	Parent company
Liabilities and shareholders' equity	Note	2023	2022	2023	2022
Current liabilities
2.01	Trade payables	15	13,221	12,247	13,231	11,487
	Borrowings and debentures	16	2,029	1,382	1,435	208
5.02	Braskem Idesa borrowings	17	739	868	-	-
5.02	Derivatives	19.5	58	195	-	111
1.02	Payroll and related charges		828	828	599	580
3.01	Taxes payable	20	387	491	319	407
3.01	Income taxes payable		11	381	-
6.02	Sundry provisions	22	1,282	923	1,197	843
5.01	Accounts payable to related parties	9(c)	-	-	1,252	1,103
6.02	Geological event in Alagoas	24	2,759	4,248	2,759	4,248
5.02	Lease	14 (b)	978	1,040	538	507
5.02	Other payables		2,202	1,583	1,556	823
			24,494	24,186	22,886	20,317
Non-current liabilities
	Borrowings and debentures	16	40,207	34,334	8,245	8,100
2.02	Braskem Idesa borrowings	17	10,511	10,502
2.02	Derivatives	19.5	141	82		82
2.02	Taxes payable	20	206	298		2
2.01	Accounts payable to related parties	9(c)		-	35,886	29,219
2.02	Loan from non-controlling shareholders of Braskem Idesa	9(a)	2,490	2,498
3.01	Deferred tax liabilities	21.2	1,677	1,153
2.02	Post-employment benefits	25.3(a)	567	494	369	325
2.02	Provision for losses on subsidiaries	11(b)			13	903
4.01	Legal provisions	23	1,095	1,171	1,089	1,164
4.02	Sundry provisions	22	943	1,357	887	1,287
4.02	Geological event in Alagoas	24	2,481	2,379	2,481	2,379
2.02	Lease	14 (b)	2,955	3,201	1,791	1,945
2.02	Other payables		695	286	472	209
			63,968	57,755	51,233	45,615
Shareholders' equity	26
1	Capital		8,043	8,043	8,043	8,043
2.05	Capital reserve and treasury shares		27	17	27	17
4	Profit reserves		-	1,826	-	1,826
8.01	Additional paid in capital		(488)	(488)	(488)	(488)
8.02	Other comprehensive loss		(852)	(2,076)	(852)	(2,076)
5	Accumulated losses		(2,738)	-	(2,738)	-
	Total attributable to the Company's shareholders		3,992	7,322	3,992	7,322
9	Non-controlling interest in subsidiaries		(713)	(1,214)	-
			3,279	6,108	3,992	7,322
Total liabilities and shareholders' equity		91,741	88,049	78,111	73,254

The notes are an integral part of the consolidated and parent company financial statements.

2

Braskem S.A.

Statement of profit or loss

Years ended December 31

All amounts in millions of Reais, except earnings (loss) per share

				Consolidated		Parent company
		Note	2023	2022	2023	2022
Net revenue	28	70,569	96,519	48,647	68,091
	Cost of products sold	30	(67,548)	(85,161)	(49,247)	(63,274)
Gross profit (loss)		3,021	11,358	(600)	4,817
Income (expenses)
1.01	Selling and distribution	30	(1,916)	(2,108)	(1,039)	(1,198)
3	Loss for impairment of trade accounts receivable and others from clients	30	(83)	(38)	(90)	(6)
2.01	General and administrative	30	(2,472)	(2,764)	(1,689)	(1,792)
2.02	Research and development	30	(383)	(374)	(196)	(204)
6.01	Results from equity-accounted investees	11(b)	7	35	2,692	3,179
4.02	Other income	30	1,769	507	1,599	306
5	Other expenses	30	(2,735)	(2,344)	(2,683)	(2,259)
(Loss) profit before financial results and taxes		(2,792)	4,272	(2,006)	2,843
Financial results	31
2.01	Financial expenses		(5,589)	(5,066)	(5,316)	(4,514)
1.01	Financial income		1,678	1,374	1,300	1,065
	Derivatives and exchange rate variations, net		511	(533)	90	(625)
			(3,400)	(4,225)	(3,926)	(4,074)
(Loss) profit before income tax		(6,192)	47	(5,932)	(1,231)
	Income taxes	21.1(c)	1,302	(868)	1,353	895
Loss for the year		(4,890)	(821)	(4,579)	(336)
Attributable to:
	Company's shareholders		(4,579)	(336)	(4,579)	(336)
	Non-controlling interest in subsidiaries		(311)	(485)
Loss for the year		(4,890)	(821)	(4,579)	(336)
Loss per share - basic and diluted - R$	27
	Basic
1.01	Common		(5.7458)	(0.4215)	(5.7458)	(0.4215)
1.02	Preferred shares class "A"		(5.7458)	(0.4215)	(5.7458)	(0.4215)
1.03	Preferred shares class "B"		(5.7458)	(0.4215)	(5.7458)	(0.4215)
	Diluted
2.01	Common		(5.7458)	(0.4215)	(5.7458)	(0.4215)
2.02	Preferred shares class "A"		(5.7458)	(0.4215)	(5.7458)	(0.4215)
2.03	Preferred shares class "B"		(5.7458)	(0.4215)	(5.7458)	(0.4215)

The notes are an integral part of the consolidated and parent company financial statements.

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