Braskem S A : 1Q21 - Braskem reports recurring Operating Result in 1Q21 of US$1,266 million, up 52% on 4Q20 - ITR

Braskem S.A.

Condensed Quarterly Information (ITR)

at March 31, 2021

and Independent Auditors' Review Report

(FreeTranslation into English from the Original Previously Issued in Portuguese.)

(Free translation from the original issued in Portuguese. In the event of any discrepancies, the Portuguese language version shall prevail.)

Independent auditor's report on review of interim financial information

To the Board of directors and shareholders of Braskem S.A.

Camaçari - Bahia

Grant Thornton Auditores

Independentes

Av. Eng. Luís Carlos Berrini, 105 - 12oandar Itaim Bibi, São Paulo (SP) Brasil

T [phone]

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of Braskem S.A. (the Company), comprised in the Quarterly Information Form for the quarter ended March 31, 2021, comprising the balance sheet as of March 31, 2021 and the respective statements of income, of comprehensive income, of changes in shareholders' equity and of cash flows for the period of three months then ended, including the footnotes.

Management is responsible for the preparation of the individual interim financial information in accordance with the NBC TG

21 - Interim Financial Reporting and of the consolidated interim financial information in accordance with the NBC TG 21 and with the international standard IAS 34 - Interim Financial Reporting, as issued by the International Accounting Standards Board (Iasb), such as for the presentation of these information in accordance with the standards issued by the Brazilian Exchange Securities Commission, applicable to the preparation of interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.

Review scope

We conducted our review in accordance with the Brazilian and International standards on reviews of interim information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). The review of interim information consists of making inquiries, primarily of persons responsible for the financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the audit standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the individual interim financial information included in the quarterly information form referred to above has not been prepared, in all material respects, in accordance with NBC TG 21 applicable to the preparation of interim financial information, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

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Conclusion on the consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information included in the quarterly information form referred to above has not been prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of interim financial information, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

Emphases of matter

Investigation in progress - Braskem Idesa

We draw attention to Note No.9(d) to the individual and consolidated interim financial information, which states that the Company engaged an independent US law firm, in order to conduct an internal investigation, due to allegations of undue payments related to the Project "Ethylene XXI". The information was originally delivered by Mexico news media and included in the testimony of Pemex´s former CEO to the General Attorney of Mexico. The investigation is under way and, to date, the Company is not able to estimate when it will be completed. Our review conclusion is not modified with respect to this matter.

Class action

We draw attention to Note No.22.3 to the individual and consolidated interim financial information, which describes that a class action lawsuit has been filed in the United States District Court for the District of New Jersey against the Company and some of its current and former executive officers under the U.S. Securities Exchange Act of 1934 and its rules. The proceeding is at its initial stage and, on January 15, 2021, the court appointed two plaintiffs to act as the lead plaintiffs in said class action lawsuit. The Company have engaged legal advisors for its defense in that country. Our review conclusion is not modified with respect to this matter.

Other matters

Statements of value added

The quarterly information referred to above includes the individual and consolidated statements of value added for the period of three months ended March 31, 2021, prepared under the responsibility of the Company's management and presented as supplementary information for the purposes of IAS 34.

These statements were submitted to the same review procedures in conjunction with the review of the Company's interim financial information in order to conclude they are reconciliated to the interim financial information and to the accounting records, as applicable, and whether the structure and content are in accordance with the criteria established in the NBC TG 09

• Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added were not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.

São Paulo, May 05, 2021

Daniel Gomes Maranhão Junior

Assurance Partner

Grant Thornton Auditores Independentes

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Braskem S.A.

Statement of interim financial position

Base date: 03/31/2021

All amounts in thousands of reais

					Consolidated				Parent company
Assets	Note	Mar/2021		Dec/2020		Mar/2021		Dec/2020
Current assets
Cash and cash equivalents	3		12,493,422	13,862,852	6,682,407	8,377,511
Financial investments	4		3,878,457	3,627,227	3,764,624	3,540,280
Trade accounts receivable	5		6,843,055	4,731,979	4,116,721	2,717,369
Inventories	6		11,939,115	8,383,650	8,883,972	6,191,167
Taxes recoverable	8		1,722,915	1,192,665	1,639,608	1,148,263
Income tax and social contribution	20(a)	1,855,838	1,547,916	637,752	345,174
Dividends and interest on capital	7		165	165	4,463	4,463
Prepaid expenses	0		336,872	344,867	221,741	241,131
Derivatives	18.2.1		20,274	33,769	311	33,765
Other receivables	0		604,200		465,154		467,286		328,687
			39,694,313	34,190,244	26,418,885	22,927,810
Non-current assets
Financial investments	4		15,322	15,564
Trade accounts receivable	5		20,644	23,229	16,062	18,647
Inventories	6		38,356	18,036			1,256
Taxes recoverable	8		1,059,990	1,072,737	804,952	813,902
Income tax and social contribution			72,475	72,267	72,475	72,267
Deferred income tax and social contribution	20(b)	9,482,232	8,529,972	7,113,721	6,536,701
Judicial deposits	24		197,115	196,911	186,357	186,140
Derivatives	18.2.1		295	34,091	288	34,091
Other receivables			290,278	227,480	169,354	161,407
Investments	9		47,677	43,153	21,187,776	17,640,426
Property, plant and equipment	10		37,337,900	35,929,149	14,813,668	14,782,471
Intangible assets	11		2,840,225	2,828,691	2,511,943	2,516,881
Right of use of assets	12		2,973,427		2,902,395		1,435,233		1,540,206
			54,375,936		51,893,675		48,311,829		44,304,395
Total assets			94,070,249		86,083,919		74,730,714		67,232,205

The notes are an integral part of the interim financial statements.

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Braskem S.A.

Statement of interim financial position

Base date: 03/31/2021

All amounts in thousands of reais									Continued
					Consolidated			Parent company
Liabilities and shareholders' equity	Note	Mar/2021		Dec/2020		Mar/2021		Dec/2020
Current liabilities
Trade payables	13		13,705,356	9,946,315	13,146,154	10,361,070
Borrowings	14		1,070,154	1,318,931	245,581	173,729
Braskem Idesa borrowings	15		8,275,858	7,660,128
Debenture	16		55,525	54,436
Derivatives	18.2.1		751,459	592,251	554,757	470,364
Payroll and related charges			515,639	814,566	321,360	567,789
Taxes payable	19		1,104,942	952,689	1,018,405	848,931
Income tax and social contribution			1,050,613	284,129	705,792	194,791
Dividends			5,451	5,456	2,628	2,633
Advances from customers			369,928	287,449	123,827	96,979
Leniency agreement	23		400,841	397,036	400,841	397,036
Sundry provisions	21		303,265	362,407	252,498	279,702
Accounts payable to related parties	7(b)				639,750	1,200,983
Other payables			545,611	466,341	139,843	187,363
Provision - geological event in Alagoas	24		4,228,652	4,349,931	4,228,652	4,349,931
Lease	12(b)	1,044,872		895,109		541,015		540,715
			33,428,166	28,387,174	22,321,103	19,672,016
Non-current liabilities
Trade payables	13		16,170	7,233	16,170	7,233
Borrowings	14		40,894,782	40,413,192	4,454,969	4,220,039
Braskem Idesa borrowings	15		4,871,657	4,399,110
Debenture	16		171,326	181,679
Derivatives	18.2.1		516,118	558,913	445,203	454,078
Taxes payable	19		1,371	1,370	1,371	1,370
Accounts payable to related parties	7(b)				37,587,324	34,769,612
Loan to non-controlling shareholders of Braskem Idesa	7(a)	3,600,276	3,222,493
Income tax and social contribution			576,174	576,174	576,174	576,174
Deferred income tax and social contribution	20(b)	1,335,926	1,234,398
Post-employment benefits			495,671	472,074	223,914	217,089
Advances from customers			378,171	382,478
Provision for losses on subsidiaries						636,874	571,952
Contingencies	22.1		1,183,202	1,151,087	1,169,298	1,137,567
Leniency agreement	23		778,707	1,077,314	778,707	1,077,314
Sundry provisions	21		526,289	511,801	481,010	476,316
Provision - geological event in Alagoas	24		4,225,145	4,825,846	4,225,145	4,825,846
Other payables			233,618	235,324	181,378	186,240
Lease	12(b)	2,327,541		2,312,777		1,201,863		1,241,665
			62,132,144	61,563,263	51,979,400	49,762,495
Shareholders' equity	25
Capital			8,043,222	8,043,222	8,043,222	8,043,222
Additional paid in capital			(488,388)	(488,388)	(488,388)	(488,388)
Other comprehensive income			(5,046,304)	(5,177,889)	(5,046,304)	(5,177,889)
Treasury shares			(49,704)	(49,704)	(49,704)	(49,704)
Accumulated losses			(2,028,615)		(4,529,547)		(2,028,615)		(4,529,547)
Total attributable to the Company's shareholders			430,211		(2,202,306)		430,211		(2,202,306)
Non-controlling interest in subsidiaries			(1,920,272)		(1,664,212)
			(1,490,061)		(3,866,518)		430,211		(2,202,306)
Total liabilities and shareholders' equity			94,070,249		86,083,919		74,730,714		67,232,205

The notes are an integral part of the interim financial statements.

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