Investor Presentaiton
Braskem adopts a conservative financial policy to limit the risks associated with the
exposure to the cyclical and capital-intensive nature of its businesses
Financial Highlights - Financial Policy
Conceptual
•
1
Liquidity
Risk
Main Mitigation Mechanisms for each Risk
Maintenance of a robust cash position, with the objective to ensure the permanent fulfillment of the
Company's financial obligations
• Calculation of a Minimum Cash based on "monthly vision" and "yearly vision" (approximately US$1.5 bi)
•
FX1
2
Braskem is a highly dollarized company; Structurally, both its revenues and most of its costs are
denominated in or indexed to Dollar
Risk
•
•
3
Commodity
Risk
•
•
4
Default
Risk
Additionally, the Company reduces FX risk by setting a Long-Term Currency Hedge Program
In the petrochemical industry, feedstock and product prices are highly correlated, creating a natural
protection (a natural "hedge") over time
Additionally, the mitigation may be achieved by contracting Commodity Hedge operations
Development of a credit rating system for all accounts receivable from clients in Brazil and abroad,
with about 80-90% of the Company's accounts receivable rated as minimal risk or low risk
Braskem has exposure to risks (liquidity, FX', commodity price variations, default, among others)
However, the Company has mitigation mechanisms for these risks to protect its cash generation
Source: Braskem. Note (1): Foreign Exchange.
PUBLIC
Braskem
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