Investor Presentaiton

Profitability in the petrochemical industry behaves cyclically Profitability in the petrochemical industry Supply and Demand Dynamics of the Petrochemical Industry CONCEPTUAL Volume Oversupply Time between decision and start-up Simultaneous investments decisions Tight market: stronger margins Beginning of the start-up period of new capacities Long market: drop in margins Supply Demand Time Highlights: Investment decisions are usually taken simultaneously and at times when the market is tight - with strong spreads However, when the new capacities come into operation, there is an oversupply of products The oversupply pressures prices down and then the market is "long", with reduced spreads Investments in the petrochemical industry do not occur in a linear fashion with demand, which results in significant excesses of capacity at certain moments Source: External Consultants. PUBLIC Braskem 22

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