Braskem S A : 4Q20 - In 2020, the Recurring Operating Result was US$2,082 million, 38% higher than 2019 - Earnings Release

CONTENTS

• 1. 4Q20 & 2020 HIGHLIGHTS..................................................................................................... 4

  • 1.1 BRASKEM-CONSOLIDATED........................................................................................... 4

  • 1.2 BRASKEM - HIGHLIGHTS BY REGION 4Q20 ............................................................... 5

• 2. OPERATING PERFORMANCE IN 4Q20 BY REGION ............................................................ 7

  2.1 BRAZIL ................................................................................................................................. 7

  2.2 UNITED STATES & EUROPE ........................................................................................... 16

  2.3 MEXICO .............................................................................................................................. 18

• 3. CONSOLIDATED PERFORMANCE 4Q20 & 2020 ................................................................ 22

  A) REVENUE BY REGION ........................................................................................................... 22

  B) CONSOLIDATED COGS .......................................................................................................... 23

  C) OTHER NET REVENUE (EXPENSES) .................................................................................... 23

  D) RECURRING OPERATING RESULT ..................................................................................... 24

  E) NET FINANCIAL RESULT ...................................................................................................... 25

  F) FREE CASH FLOW ................................................................................................................... 27

  G) LIQUIDITY & CAPITAL RESOURCES .................................................................................. 27

  H) INVESTMENTS & VALUE CREATION .................................................................................. 30

  I) DELEVERAGING PLAN ........................................................................................................... 33

• 4. ENVIRONMENT, SOCIAL RESPONSIBILITY & CORPORATION GOVERNANCE ........... 33

  • 4.1 HIGHLIGHTS ..................................................................................................................... 33

  • 4.2 RECOGNITION .................................................................................................................. 34

  • 4.3 CIRCULAR ECONOMY ...................................................................................................... 34

  • 4.4 SAFETY ............................................................................................................................... 35

  • 4.5 CORPORATE GOVERNANCE ........................................................................................... 36

• 5. CAPITAL MARKETS ................................................................................................................. 36

5.1 RATING .............................................................................................................................. 37

5.2 MODELING 2021 .............................................................................................................. 37

5.3 INDICATORS ..................................................................................................................... 38

LIST OF ANNEXES: ......................................................................................................................... 39

DISCLAIMER ON FUTURE STATEMENTS

This Earnings Release may contain prospective statements. These statements are not historical facts, they are based on the current vision and estimates by the Company's management regarding future economic circumstances and other industry conditions, performance and financial results, including any potential or projected impact of the geological event in Alagoas and related legal proceedings, and from COVID on business, financial situation and operating results of the Company. The words "foresee", "believe", "estimate", "expect", "plan" and other similar expressions, when referring to the Company, are used to identify prospective statements. Statements regarding possible results of legal and administrative processes, implementation of operations strategies and financing and investment plans, direction on future operations, as well as factors or trends which can affect the financial condition, liquidity or operating results of the Company are examples of prospective 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 premises and factors including general economic and market conditions, industry conditions and operational factors. Any change in such premises or factors, including the projected impact of the geological event in Alagoas and related legal proceedings and the unprecedented impact of the COVID pandemic on business, employees, service providers, shareholders, investors and all other individuals related to the Company may lead to results that in effect are significantly different from current expectations. Consult the reports filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários, CVM), in particular the factors discussed in the sections for a full discussion of the risks and other factors that may impact any prospective statements contained in this document.

In 2020, the Recurring Operating Result was US$2,082 million, 38% higher than 2019

In 4Q20, the Recurring Operating Result was US$833 million, 22% higher than 3Q20

1. 4Q20 & 2020 HIGHLIGHTS

1.1 BRASKEM - CONSOLIDATED

4Q20	3Q20	4Q19	Chg.	Chg.	2020	2019	Chg.
(A)	(B)	(C)	(A)/(B)	(A)/(C)	(D)	(E)	(D)/(E)
In R$ million
Net Revenue	18,738	15,992	12,640	17%	48%	58,543	52,324	12%
COGS	(13,798)	(12,427)	(11,065)	11%	25%	(47,331)	(45,680)	4%
Recurring Operating Result¹	4,522	3,666	993	23%	n.a.	10,975	5,936	85%
Net Financial Result	898	(1,832)	(872)	n.a.	n.a.	(9,612)	(4,746)	103%
Net Profit (Loss)²	846	(1,413)	(2,922)	n.a.	n.a.	(6,692)	(2,798)	139%
Free Cash Flow Generation³	2,033	747	292	172%	n.a.	1,276	3,108	-59.0%
In US$ million
Net Revenue	3,482	2,972	3,071	17%	13%	11,381	13,285	-14%
COGS	(2,568)	(2,310)	(2,689)	11%	-4%	(9,254)	(11,598)	-20%
Recurring Operating Result¹	833	681	241	22%	n.a.	2,082	1,514	38%
Net Financial Result	172	(334)	(208)	n.a.	n.a.	(1,955)	(1,192)	64%
Net Profit (Loss)²	137	(258)	(708)	n.a.	n.a.	(1,367)	(662)	106%
Free Cash Flow Generation³	377	139	71	171%	n.a.	216	789	-73%
Net Debt/Recurring Operating Result (x)	2.94x	4.98x	4.71x	-41%	-38%	2.94x	4.71x	-38%

Main Financial Highlights

¹Operating Result (-) non-recurring expenses, including expenses related to the geological event in Alagoas, PIS and COFINS credits (excluding the ICMS calculation base) and others

²Net Profit (Loss) Attributable to Company's Shareholders

•  The Company's recurring Operating Result was US$833 million, 22% higher than in 3Q20, explained mainly by better spreads for resins and main chemicals in Brazil, for PP in the United States and for PE in Mexico. Compared to 4Q19, recurring Operating Result in U.S. dollar was 246% higher, due to: (i) the better spreads for resins and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) the higher sales volume of resins and main chemicals in Brazil. In Brazilian real, the recurring Operational Result was R$4,522 million, 23% and 355% higher than in 3Q20 and 4Q19, respectively, due to the depreciation in the Brazilian real against the U.S. dollar.

  ³Free Cash Flow Generation (=) Net Cash Generated from Operating Activities (-) Leniency Agreement (+) effects of reclassifications between the lines of Financial Investments (includes LFT's and LF's) and Cash and Cash Equivalents (-) Judicial Deposits - Other Financial Assets (+) Net Cash used in Investing Activities (+) Lease (+) Revenue to be Performed.

•  In 2020, the Company recorded a net loss1 of R$6,692 million, explained mainly by the provisions related to the geological event in Alagoas in the amount of R$6,902 million and by the impact of the exchange variation on the financial result given the Brazilian real depreciation against the U.S. dollar on net exposure of US$3,400 million.

•  In the year, the Company registered positive net cash generation of R$1,276 million, mainly due to: (i) strong operating result; (ii) the monetization of PIS/COFINS credits of R$1,786 million; and (iii) the reduction of the Company's projected investments by 23%. These impacts were partially offset by the impact from working capital on cash flow in the first half of the year, given the cash consumption caused by the change in the feedstock profile, with lower volumes of imported naphtha.

•  Supported by the Company's cash generation and continued commitment to its financial health, corporate leverage measured by the ratio of Net Debt to recurring Operating Result2 in U.S. dollar was 2.94x.

•  In the year, the overall accident frequency rate with and without lost time (CAF + SAF) was 0.95 event per million hours worked, 71% below the industry average3. The rate is the lowest rate of the last three years and was achieved with the efforts and training under the Company's Human Reliability Program. Also, the

• 1 Based on net loss attributable to the Company's shareholders.

• 2 Excludes the Project Finance in Mexico and based on recurring EBITDA.

³ The industry average is 3.25 per million hours worked according to the American Chemistry Council. The most recent data refers to 2018.