Braskem S A : EARNINGS RELEASE 1Q21

EARNINGS RELEASE 1Q21

CONTENTS
1.	1Q21 HIGHLIGHTS .............................................................................................................................	4
	1.1	BRASKEM - CONSOLIDATED ..................................................................................................	4
	1.2	BRASKEM - HIGHLIGHTS BY SEGMENT 1Q21 .................................................................	5
2. OPERATING PERFORMANCE IN 1Q21 BY SEGMENT..............................................................	6
	2.1	BRAZIL ............................................................................................................................................	6
	2.2	UNITED STATES & EUROPE ...................................................................................................	15
	2.3	MEXICO.........................................................................................................................................	18
3.	CONSOLIDATED PERFORMANCE 1Q21 .....................................................................................	22
	A) REVENUE BY REGION ....................................................................................................................	22
	B) CONSOLIDATED COGS...................................................................................................................	22
	C) OTHER NET REVENUE (EXPENSES)...........................................................................................	23
	D) RECURRING OPERATING RESULT ............................................................................................	23
	E) NET FINANCIAL RESULT ...............................................................................................................	24
	F) FREE CASH FLOW.............................................................................................................................	26
	G) LIQUIDITY & CAPITAL RESOURCES ........................................................................................	26
	H) INVESTMENTS & VALUE CREATION.........................................................................................	29

4. ENVIRONMENTAL, SOCIAL & CORPORATION GOVERNANCE (ESG) PERFORMANCE

32

4.1	HIGHLIGHTS...............................................................................................................................	32
4.2	I'm greenTM PORTFOLIO .........................................................................................................	32
4.3	SAFETY..........................................................................................................................................	34
4.4	CORPORATE GOVERNANCE ...................................................................................................	34
5. CAPITAL MARKETS ...........................................................................................................................	35
5.1	RATING .........................................................................................................................................	36
5.2	MODELING 2Q21 vs. 1Q21 ....................................................................................................	36
5.3	INDICATORS...............................................................................................................................	37
LIST OF ANNEXES:....................................................................................................................................	38

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EARNINGS RELEASE 1Q21

FORWARD-LOOKING STATEMENTS

This Earnings Release may contain forward-looking statements. These statements are not historical facts, but 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 from the geological event in Alagoas and related legal procedures and from covid-19 on the Company's business, financial condition and operating results. The words "foresee", "believe", "estimate", "expect", "plan" 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, 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 general economic and market conditions, industry conditions and operating factors. Any change in these assumptions or factors, including the projected impact from the from the geological event in Alagoas and related legal procedures and the unprecedented impact from covid-19 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).

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EARNINGS RELEASE 1Q21

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

1. 1Q21 HIGHLIGHTS

1.1 BRASKEM - CONSOLIDATED

Main Financial Highlights	1Q21	4Q20	1Q20	Chg.	Chg.
(A)	(B)	(C)	(A)/(B)	(A)/(C)
In R$ million
Net Revenue	22,692	18,738	12,625	21%	80%
COGS	(15,454)	(13,798)	(11,451)	12%	35%
Recurring Operating Result¹	6,943	4,522	1,276	54%	n.a.
Net Financial Result	(3,463)	898	(6,254)	n.a.	-45%
Net Profit (Loss)²	2,494	846	(3,649)	195%	n.a.
Free Cash Flow Generation³	1,766	2,033	(524)	-13%	n.a.
In US$ million
Net Revenue	4,137	3,482	2,846	19%	45%
COGS	(2,818)	(2,568)	(2,581)	10%	9%
Recurring Operating Result¹	1,266	833	287	52%	n.a.
Net Financial Result	(639)	172	(1,332)	n.a.	-52%
Net Profit (Loss)²	449	137	(777)	n.a.	n.a.
Free Cash Flow Generation³	323	377	(118)	-14%	n.a.
Net Debt/Recurring Operating Result (x)	1.80x	2.94x	5.84x	-39%	-69%

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

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 1Q21, the Company's recurring Operating Result was US$1,266 million, 52% higher than 4Q20, mainly due to: (i) better spreads for PE, PP and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher PP sales volume in Europe. Compared to 1Q20, the recurring Operating Result in U.S. dollar increased 341%, due to: (i) better spreads for resins and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher PP sales volume in the United States and Europe and main chemicals in Brazil. In Brazilian real, recurring Operational Result was R$6,943 million, 54% and 444% higher than in 4Q20 and 1Q20, respectively, reflecting the 23% depreciation in the Brazilian real against the U.S. dollar.
• In the quarter, the Company recorded a net profit1 of R$2,494 million, up 195% from 4Q20, representing R$3.14 per common share and class A preferred share2.
• Free cash flow generation in 1Q21 was positive by R$1,766 million, explained mainly by (i) the recurring Operating Result in the quarter; (ii) the monetization of PIS/COFINS credits in the approximate amount of R$761 million; (iii) the reduction in operating capex due to scheduled maintenance shutdowns in the United States and Europe and the operating adjustments carried out at the petrochemical complex in São Paulo in 4Q20; and (iv) the reduction in strategic investments. These positive impacts were mainly opposed by
  (i) the negative variation in working capital, mainly due to the impacts from higher prices for resins and main chemicals in the international market on accounts receivable and from higher naphtha prices on the cost of finished goods in inventory; and (ii) the higher payments of interest in the quarter, which increased compared to the prior quarter due to the payment of interest on the bonds issued by the Company in 2020.

1. Based on net income (loss) attributable to the shareholders of the Company.
2. For the class "B" preferred shares, the amount is R$0.61 per share.

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EARNINGS RELEASE 1Q21

• In line with the continuous commitment to its financial health and regaining its investment grade rating, the Company continued to reduce its corporate leverage, measured as the ratio of net debt to recurring Operating Result3 in U.S. dollar, which ended 1Q21 at 1.80x, down 39% in relation to 4Q20 (2.94x).
• In the year to date, the recordable and lost-time injury frequency rate stood at 0.75 (event/million hours worked), which is 72% below the industry average4, with the highlight the results for January, when the Company registered zero reported and lost-time injuries.
• In February 2021, the Company entered into a strategic partnership with the world's largest logistics company, A.P. Moller - Maersk, and PSA Corporation Ltd (PSA), one of the largest port operators in the world, for the utilization of its terminals in Singapore and initiate the transshipment operation to serve the Asian continent. The agreement will enable the Company to offer its clients in Asia regular access to its vast polymer portfolio, representing yet another step in its geographical diversification by creating more favorable logistics conditions for serving clients directly.
• In April, Braskem was certified as an Authorized Economic Operator (AEO) - Compliance Modality by the Federal Revenue Service of Brazil. Being an OEA means being recognized internationally for adopting management processes that minimize events involving risks inherent to its import operations and that meet voluntarily criteria on compliance, reliability and safety applicable to the global logistics chain, as well as tax and customs obligations.
• The Company's class "A" preferred shares (BRKM5) gained 121% in the year to date5.

1.2 BRASKEM - HIGHLIGHTS BY SEGMENT 1Q21 BRAZIL

• The recurring Operating Result in Brazil was US$943 million (R$5,173 million), 39% and 330% higher than in 4Q20 and 1Q20, respectively, due to the higher spreads in the international market for PE, PP and main chemicals, which accounted for 70% of the Company's consolidated recurring Operating Result.
• In the first quarter, in line with the Company's strategy to diversify its supplier base, the Brazil segment continued to acquire naphtha through supply agreements with international suppliers, with naphtha imports accounting for approximately 70% of total naphtha consumption in the quarter.

UNITED STATES & EUROPE

• The recurring Operating Result in the United States and Europe was US$315 million (R$1,718 million), 170% and 421% higher than in 4Q20 and 1Q20, respectively, reflecting the higher sales volume in Europe and higher spreads in the international market for PP in both regions, accounting for 23% of the Company's consolidated recurring Operating Result.
• In the quarter, Braskem made its first international polypropylene shipment from its new export hub located in Charleston, South Carolina. The new hub, which offers packaging, warehousing and export shipment services to support Braskem's six PP plants in the United States, has capacity to support exports of up to 204 kta to its clients around the world.

1. Excludes the Project Finance in Mexico and based on recurring Operating Result.
2. The industry average is 3.25 per million hours worked, according to the American Chemistry Council. The most recent data refers to 2018.
3. In the year to May 5, 2021.

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