Integrated Report 2020 slide image

Integrated Report 2020

Braskem INTEGRATED REPORT 2020 CAPITAL PERFORMANCE A MESSAGE FROM THE BUSINESS LEADER BRASKEM STRATEGIC PLANNING ABOUT THE REPORT CREDITS ŵ ( 37 ) Origin of Financial Resources NET CASH FLOW GENERATION R$ 1,276 million 59% lower than in 2019 • Strong operating result • Monetized PIS/COFINS credits totaling . R$ 1.786 million • Reduced planned investments by 23% • Impacts partially set off by the impact of working capital in the cash flow in the first half of the year due to lower purchased volumes of imported naphtha AVERAGE DEBT MATURITY 19 years •50% of the debt due later than 2030 • Average weighted cost of debt impacted by exchange rate variation +5.3% CASH POSITION US$ 3,940 million •Assures timely payment for debt maturing . in the next 84 months • Considers the revolving credit line of US$1 billion, available until 2023 Corporate leverage RATIO Despite the adverse scenario resulting from the downturn in the petrochemical industry and the uncertainties stemming from the Covid pandemic, we have been able to pre- serve and maintain our solid cash position and long debt profile. In line with our firm commitment to financial health and cost discipline, we implemented a number of measures to reduce our corporate leverage ratio, aiming to return to investment grade. Since the second quarter of 2020, we were able to deleverage significantly, down from 7.1x to 2.9x at the end of 2020. One of the measures taken was the issuan- ce of US$ 600 million in hybrid bonds (su- bordinated bonds) in July 2020, with 50% equity treatment by Standard & Poor's and Fitch Ratings. $ Allocation of Resources INVESTMENTS: US$ 555 million 8% below the US$ 600 million Including: • Construction of the new PP plant in the United States (Delta Project) tota- ling R$ 802 million (US$ 162 million) • Includes investments to restart chlorine- -soda production in Maceió through the acquisition of sea salt STATEMENT OF VALUE ADDED (DVA) R$ 9,599 million 38% higher than 2019 We aim to distribute our financial capital in a way that adds value to all our sta- keholders. To this end, all funds, whether provided by third parties or deriving from the company's own cash flow, are inves- ted to generate added value for society. + See complete DVA in the indicator center. Capital Market BRKM3 R$ 25.22 per share (-20.04% compared to 2019) BRKM3 R$ 23.57 per share (-21.04% compared to 2019) Uncertainties resulting from the COVID-19 pandemic • Updates on the geological event in Alagoas •Loss of investment grade by rating agencies •Controlled company Braskem Idesa in Mexico affected by problems in the transportation of natural gas and ethane supply + For additional information on Financial Capital, visit our Management Report 2020.
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