Braskem S A : 2023 Management Report

MANAGEMENT REPORT 2023

Contents
1.	MESSAGE FROM MANAGEMENT	4
2.	OUTLOOK	6
3.	GLOBAL PETROCHEMICAL INDUSTRY	7
4.	OPERATING PERFORMANCE 2023	9
7.	ESG AGENDA - 2023 HIGHLIGHTS	37
8.	SUSTAINABLE INNOVATION	42
9.	CAPITAL MARKETS & INVESTOR RELATIONS	43
10.	LIST OF ANNEXES:	45

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MANAGEMENT REPORT 2023

FORWARD-LOOKING STATEMENTS

This Management Report may contain forward-looking statements. These statements are not historical facts, but rather are based on the current view and estimates of the Company's management regarding future economic and other circumstances, industry conditions, financial performance and results, including any potential or projected impact regarding the geological event in Alagoas and related legal procedures on the Company's business, financial condition and operating results. The words "project," "believe," "estimate," "expect," "plan," "aim" and other similar expressions, when referring to the Company, are used to identify forward-looking statements. Statements related to the possible outcome of legal and administrative proceedings, implementation of operational and financing strategies and investment plans, guidance on future operations, the objective of expanding its efforts to achieve the sustainable macro goals disclosed by the Company, as well as factors or trends that affect the financial condition, liquidity or operating results of the Company are examples of forward-looking statements. Such statements reflect the current views of the Company's management and are subject to various risks and uncertainties, many of which are beyond the Company's control. There is no guarantee that the events, trends or expected results will actually occur. The statements are based on various assumptions and factors, including, but not limited to, general economic and market conditions, industry conditions, operating factors, and availability, development and financial access to new technologies. Any change in these assumptions or factors, including the projected impact from the geological event in Alagoas and related legal proceedings and unprecedented impacts on businesses, employees, service providers, shareholders, investors and other stakeholders of the Company could cause actual results to differ significantly from current expectations. For a comprehensive description of the risks and other factors that could impact any forward-looking statements in this document, especially the factors discussed in the sections, see the reports filed with the Brazilian Securities and Exchange Commission (CVM). This Management Report is not an offer of securities for sale in Brazil. No securities may be offered or sold in Brazil without being registered or exempted from registration, and any public offering of securities in Brazil will be carried out by means of a prospectus that may be obtained from Braskem and which will contain detailed information on Braskem and management, as well as its financial statements.

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MANAGEMENT REPORT 2023

MANAGEMENT REPORT

BRASKEM 2023

The Management of Braskem S.A. ("Braskem") submits for your examination this Management Report and corresponding Financial Statements, accompanied by the opinions of the Independent Auditors and the Audit Board, for the fiscal year ended December 31, 2023.

1. MESSAGE FROM MANAGEMENT

In 2023, the global economy should register economic growth of 3.1%, according to the International Monetary Fund (IMF), an increase of 0.2 p.p. from the 2.9% projected by it early in 2023. The main factor that will result in above-expected growth was the control of global inflationary pressure due to the increase in interest rates globally, even though these increases have had an impact on industrial activity and consumption in the world's leading economies.

Regarding the global petrochemical scenario, the increase in the supply of products, with the continuous entry of new PE and PP capacities in operation in the United States and China, combined with lower global consumption as a result of high-interest rates and persistent inflationary pressures, reflected in petrochemical spreads in the international market which reached the lowest levels ever in 2023, putting pressure on the profitability across the global chemical and petrochemical industry.

Regarding the Brazilian chemical industry, Brazil imported chemical products worth approximately US$61 billion in 2023, according to the Brazilian Chemical Manufacturers Association (ABIQUIM), which is the second highest level in the sector trade balance since 1989. The increase in the volume of imported products combined with the downcycle across the industry led to an increase in idle capacity in the Brazilian industry, which reached levels not seen since 2007.

Therefore, Braskem presented a recurring EBITDA of US$743 million in 2023, 64% lower in relation to 2022, mainly due to: (i) the decrease in international spreads for PE, PP, and PVC in Brazil, PP in the United States and Europe and PE in Mexico; (ii) the decrease in the sales volume of resins and main chemicals in the Brazil/South America Segment, and PP in the United States and Europe. These effects were partially offset by: (i) the prioritization of sales with higher added value and sales mix optimization; (ii) the reduction of around R$292 million in general and administrative expenses as a result of the corporate initiatives for fixed cost reduction implementation; and (iii) the recognition in the result of around R$393 million related to the calculation of REIQ-related tax credits in 2023.

In the period, the Company registered a cash consumption of R$ 1.9 billion, mainly explained by the reduction of 64% in the recurring EBITDA in relation to 2022; due the downcycle in the petrochemical industry. These impacts were partially offset by (i) lower CAPEX in relation to the estimates in the beginning of 2023, explained by the prioritization of investments; (ii) the positive variation in working capital due implementing of optimization in operational working capital initiatives; and (iii) the lower income tax payments in the year. Considering the payments regarding Alagoas, the Company registered a cash consumption of approximately R$ 4.6 billion.

In this scenario, the Company remained focused on implementing resilience and preservation of financial health initiatives. These initiatives were implemented in diverse action fronts, such as:

• Operations: revision of the commercial strategy, purchase of feedstock, prioritization of sales of higher value added, global optimization of operating working capital and of fixed and variable costs;
• Asset profitability: adjustment of the operating rate of industrial assets in relation to the level of demand, prioritizing more competitive assets, and review of the maintenance shutdown schedule;
• Finance: maintenance of robust cash position and extended debt profile, and debt coverage above 60 months;
• Investments: prioritization of growth investments with high returns, through partnerships;

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MANAGEMENT REPORT 2023

• Competitiveness: participation in the competitiveness agenda of the Brazilian chemical industry and optimization of the asset portfolio, seeking greater value capture in resilient businesses.

Regarding the development strategy, it is worth mentioning the completion of financing for construction of an ethane import terminal in Mexico by Terminal Química Puerto México ("TQPM"), a joint venture between Braskem Idesa and Advario, a branch of the German company Oil Tanking, global leader in liquid storage logistics sector. The financing was structured in the project finance structure and was one more important step towards greater availability of feedstock for Braskem Idesa. The ethane import terminal, which will have the capacity to import up to 80,000 barrels of ethane per day, should be concluded by the end of 2024, with startup of operations in 1Q25.

Additionally, the expansion of Green PE production capacity was completed to 260 kt/year or 30% in relation to previous capacity, reinforcing Braskem's global leadership in the production of biopolymers.

Regarding safety, a permanent and nonnegotiable value for the Company, in 2023, the global reportable and lost-time injury rate (CAF + SAF) stood at 1.08 events per million hours worked, which is below the industry average1. Also, the frequency rate of Tier 1 and Tier 2 process accidents was 0.11 events per million hours worked, which is the Company's second best-ever performance.

Braskem's priority in its operations in Brazil and abroad is people's safety. At the end of 2023, after an atypical microseismical activity in a region located in the Mutange neighborhood, in Maceió, one of the cavities that the Company monitors collapsed, with direct impacts restricted to its location within the protection area defined together with the authorities, which has been vacated since April 2020. From 2019 until now, Braskem has reaffirmed its commitment to Maceió and its residents. Four years ago, Braskem began the preventive relocation of the eviction areas together with the authorities and signed agreements to develop a set of actions and programs to repair, mitigate, and compensate for the effects of soil subsidence in Maceió.

In this scenario, in the context of the geological related to Financial Compensation and Relocation Support Program. By February 29, 2024, 99.6% of properties had already been relocated, with 100% of properties in criticality area 00 having already been relocated. Additionally, 19,121 financial compensation proposals were presented by the Company, with a proposal acceptance rate of 99.4%. At the end of 2023, the balance of provisions related to the geological event in Alagoas was approximately R$5.2 billion.

About ESG, the Company advanced in the implementation of its sustainable development strategy and, at the end of 2023, 31% of its 2020-2030 goals had been achieved2, notably the following macro goals: (i) Eliminating plastic waste (+5%), mainly due to the 25% increase in sales of products with recycled content, totaling 65,000 tons; (ii) Combating climate change (+37%), with the reduction of scope 1 and scope 2 GHG emissions and the increase in the purchase of renewable electrical energy to 85%; and (iii) Social responsibility and human rights (+48%), with the highest percentage of women in leadership positions in the last four years (33%), and by increasing the number of people benefiting in communities and achieving 98% of the high and medium human rights risks managed.

Acknowledgments:

The Management once again takes this opportunity to thank its Shareholders for their trust in Braskem, its Clients, who are fundamental partners in our aspiration to continue developing solutions in chemistry and plastics that improve people's lives, and its Team Members, Partners and Suppliers for their dedication and competence, who are critical for our achievements and results as we continue to expand globally and resiliently.

1. The industry average is 3.25 per million hours worked, according to the American Chemistry Council. The most recent data refers to 2018.
2. Excludes the Water Security Indicator, since the base year is under evaluation, and Operational Eco-efficiency commitment, since the related ambitions are being defined.

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MANAGEMENT REPORT 2023

2. OUTLOOK

In January 2024, the International Monetary Fund (IMF) revised its global GDP growth projection to 3.1% in 2024, which is higher than its forecast in October 2023 (+0.2 p.p.), due to the greater economic resilience of the United States and several large emerging and developing economies, in addition to fiscal stimuli in China. However, still below the historical average of 3.8% (2000-2019).

Additionally, the IMF forecasts a decline in global inflation from 6.8% in 2022 to 5.8% in 2024 and 4.4% in 2025, and disinflation will be more accelerated in developed economies. The main factors driving this disinflationary in general are: the results of contractionary monetary policies, and the consequences of lower energy prices.

In this context of global disinflation combined with constant economic growth, the IMF indicates that the probability of a hard landing has decreased and the risks to global growth are balanced.

As for the global petrochemical scenario, the expectation among external consulting firms for 2024 is a scenario with petrochemical spreads slightly better for some products compared to 2023 levels, however still affected by the imbalance between supply and demand caused by the entry of new resin production capacities globally in the last years. However, the recent positive revisions in global GDP growth associated with the global disinflationary process indicate an increase in global consumption in 2024, reflecting better spreads in the international market until the end of the year.

Regarding the Brazilian chemical industry, according to ABIQUIM, the focus in 2024 is on continuing the agenda related to the competitiveness of Brazilian industry in comparison with global industry, including the reduction in the price of natural gas in Brazil, including the feedstocks extracted from it, such as ethane, propane and butane, for consumption by the chemical industry.

In 2024, Braskem will continue to focus on areas of action that seek a balance between optimizing the current asset portfolio and executing growth and transformation investments, to ensure profitability and financial health. Regarding the CAPEX, the investment planned to be carried out throughout 2024 by Braskem (ex-Braskem Idesa) its US$440 million (R$2,2 billion), around 37% lower than the historical average of the last 7 years (US$700 million), as a result of prioritizing investments and reviewing the shutdown schedule, with no impact on the operations safety.

Accordingly, in 2024, the Company's focus will be: (i) advancing on fronts related to the geological event in Alagoas to meet all the commitments established in the agreements; (ii) optimizing the operation of assets and strengthening measures to reduce costs and increase productivity and competitiveness; (iii) implementing initiatives aimed at financial preservation, deleveraging and less cash requirements, with the focus on contingency actions for the petrochemical cycle, including the optimization of working capital; (iv) encouraging discussions about the competitiveness of the Brazilian industry and seeking measures to ensure competitive equilibrium; (v) concluding the construction of the ethane terminal and pursuing initiatives to create value in Mexico; and (vi) giving priority to investments related to the company's long-term strategy, supported by innovation and digital transformation initiatives.

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MANAGEMENT REPORT 2023

3. GLOBAL PETROCHEMICAL INDUSTRY

	International References¹ (US$/ton)	2023		2022	Chg.
		(A)		(B)	(A)/(B)
	Brazil
	Prices
	Brent (US$/bbl)	83	101	-18%
	Natural Gas (US$/MMBtu)	3		7	-61%
	Naphtha	643	770	-16%
	Ethane	182		356	-49%
	Propane	370	576	-36%
	Resins (i)	930		1,201	-23%
	PE US	944	1,284	-26%
	PP Asia	951		1,106	-14%
	PVC Asia	819	1,095	-25%
	Main Chemicals (ii)	1,041		1,263	-18%
	Caustic Soda US	498	817	-39%
	EDC US	246		433	-43%
	Spreads
	Resins (i)	356	525	-32%
	PE US (iii)	366		568	-36%
	PP Asia	308	336	-8%
	PVC Spread Par (iv)	450		838	-46%
	Main Chemicals (v)	398	493	-19%
	USA & Europe
	PP US	1,395		2,201	-37%
	PP Europe	1,416	1,792	-21%
	Average Price - US and Europe (vi)	1,401		2,086	-33%
	Propylene Polymer Grade US	954		1,121	-15%
	Propylene Polymer Grade Europe	1,176	1,463	-20%
	Average Price - Raw Material (vii)	1,016		1,216	-16%
	PP US Spread	441		1,080	-59%
	PP Europe Spread	240	329	-27%
	PP US and Europe - Average Spread	385	870	-56%
	Mexico
	PE US (1)	944		1,248	-24%
	Ethane US (2)	182	356	-49%
	Spread (1-2)	762	892	-15%

¹Source: External consulting (Spot Price)

1. PE US (54%), PP Asia (33%) e PVC Asia (13%)
2. Ethylene (20%), Butadiene (10%), Propylene (10%), Cumene (5%), Benzene (20%), Paraxylene (5%), Gasoline (25%) and Toluene (5%)
3. PE US -Naphtha (82%)+ (PE US - 0,5*Ethane - 0,5*Propane)(18%)
4. PVC Asia + (0.685*Soda US) - (0.48*Ethylene Europe) - (1.014*Brent)
5. Main Chemicals - Naphtha
6. PP USA (72%) and PP Europe (28%)
7. Propylene USA (72%) and Propylene Europe (28%)

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MANAGEMENT REPORT 2023

BRAZIL/SOUTH AMERICA

PE Spread3: decreased from 2022 (-36%).

1. PE price was lower (-26%) due to: (i) lower demand growth on account of macroeconomic factors; and (ii) higher supply due to the startup of new capacities in 2023.

1. 1. Naphtha prices also decreased (-16%), due to lower petroleum prices (-18%) in the period, and lower global demand across the petrochemical sector.
2. Spread4: decreased compared to 2022 (-8%).
3. 1. PP prices in Asia decreased (-14%) mainly due to: (i) lower demand growth associated with the global economic slowdown; and (ii) by the supply of the product in the region, from the startup of new capacities in China.

1. Naphtha prices decreased (-16%), as mentioned earlier. PVC Par Spread5: decreased in relation to 2022 (-46%).

1. The PVC Par Spread decreased mainly due to: (i) lower demand growth, influenced by the increase in global interest rates, which affected the construction and infrastructure sector, including in China; and (ii) lower prices of caustic soda (-39%) due to the normalization of supply of the product in the international market during 2023.

Main Basic Chemicals Spreads6: decreased from 2022 (-19%).

1. Spread on main base chemicals decreased mainly due to the drop in prices of main chemicals (-18%), explained by lower oil prices in the period (-18%) resulting from lower global demand, partially offset by lower ARA naphtha prices (-16%) caused by weaker global demand from the petrochemical industry additionally with oil prices.

UNITED STATES & EUROPE

U.S. PP Spread7: decreased from 2022 (-59%).

1. PP prices in the United States decreased (-37%), primarily due to: (i) lower demand in U.S. for the product, combined with higher inflation and interest rates in the region; and
2. 1. the increase in supply of products with the entry of new PP capacities in the United States and Canada.

1. Propylene prices in the United States decreased (-15%), due to: (i) lower demand in the region, affected by lower demand for PP, the main product made from propylene; and (ii) lower oil prices in the international market.

Europe PP Spread8: decreased from 2022 (-27%).

1. PP prices in Europe decreased (-21%) due to: (i) the decrease in demand as a result of lower consumption, influenced by high inflation and interest rates in the region; and (ii) the

1. (US PE Price - naphtha ARA price)*82%+(US PE Price - 50% US ethane price - 50% US propane price)*18%.
2. Asia PP price - ARA naphtha price.
3. The PVC Par spread better reflects the profitability of the Vinyls business, which is more profitable compared to the temporary/non-integrated business model of 2019/20, when the Company imported EDC and caustic soda to serve its clients. Its calculation formula is: Asia PVC Price + (0.685*US Caustic Soda) - (0.48*Europe Ethylene) - (1.014*Brent).
4. Average price of base chemicals (Ethylene (20%), Butadiene (10%), Propylene (10%), Cumene (5%), Benzene (20%), Paraxylene (5%), Gasoline (25%) and Toluene (5%), based on Braskem's sales mix) - naphtha ARA price.
5. U.S. PP price - U.S. propylene price.
6. EU PP price - EU propylene price.

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MANAGEMENT REPORT 2023

entry of imported products, whose production costs are more competitive than the producers of the region.

1. Propylene prices decreased (-20%) due to: (i) lower demand, influenced by macroeconomic factors and higher production costs; and (ii) lower oil prices in the international market.

MEXICO

North America PE Spread9: decreased from 2022 (-15%).

1. PE prices decreased (-24%),as explained above.

1. Regarding ethane, the price reduction in 2023 (-49%) is chiefly due to lower price of natural gas, which contains ethane, explained by the high supply in the region and by operating and logistics problems that hampered the logistics and exports of both products.

4. OPERATING PERFORMANCE 2023

4.1 BRAZIL/SOUTH AMERICA

Recurring EBITDA in 2023 was US$442 million (R$2,235 million), lower than in 2022 (-63%), accounting for 54% of the Company's consolidated Recurring EBITDA in 2023. This reduction is mainly explained by:

1. the average decrease of 32% in resin spread and of 19% in main chemicals spread in the international market; and (ii) the decrease of 482 kton (-17%) in sales volume of main chemicals in the Brazilian market, 176 kton (-5%) in the sales volume of resins in the Brazilian market, and 27 kton (-3%) in resin export volume. These effects were partially offset by: (i) the prioritization of sales with higher added value; and
2. the reduction in SG&A expenses compared to 2022 as result of the implementing of corporate initiatives for fixed and variable cost reduction.

4.1.1 OPERATIONAL OVERVIEW

1. Demand for thermoplastic resins (PE+PP+PVC): higher (+2%) in relation to 2022, mainly due to higher demand for PP and PVC from agricultural and construction sectors.

9 U.S. PE price - U.S. ethane price.

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MANAGEMENT REPORT 2023

1. Utilization rate of petrochemical crackers: in relation to 2022, declined (-7 p.p.) mainly due to: (i) the adaptation of production to the global demand level; and (ii) the scheduled maintenance shutdown at the petrochemical cracker in Bahia in 4Q23.

1. Resin sales: resin sales volume in the Brazilian market decreased (-5%) in relation to 2022 due to the prioritization of sales with higher added value and higher supply of products in the international market.

Resin export volume was lower (-3%) in relation to 2022, due to high inventory levels in the global chain, reducing demand for products with an impact on petrochemical spreads in the international market in the period.

1. Main chemicals sales volume: in the year, mains chemical sales volume in the Brazilian market decreased (-17%) compared to 2022 mainly due to: (i) lower spreads on main chemicals in the international market, explained by the global supply and demand imbalance; (ii) lower gasoline sales resulting from lower product availability for sale; and (iii) the increase in imports for finished products derived from main chemicals, impacting demand in the Brazilian market.

Exports of main chemicals grew (+7%) in relation to 2022, due to better opportunities in the international market for sales of gasoline, benzene and toluene.

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