Integrated Report 2020

Braskem INTEGRATED REPORT 2020 A MESSAGE FROM THE BUSINESS LEADER BRASKEM STRATEGIC PLANNING CAPITAL PERFORMANCE ABOUT THE REPORT CREDITS ŵ <04> We also provided a R$ 1 billion line of credit with special conditions for our customers, analyzing their needs case by case. We donated approximately R$ 11 million to sur- rounding communities and society at large in products or financial support in global actions against Covid-19. Additionally, we adopted measures to preserve our cash, for example, by reducing investments and fixed expens- es and optimizing working capital with relevant suppliers. As shelter-in-place measures were gradually lifted after the first pandemic wave, the global economy responded with strong recovery and increased demand for thermo- plastic resins, mostly driven by the sectors of greatest consumption during the pandemic - packaging and med- ical applications. In addition, we postponed the start of operations of new capacities in the global petrochemical market, given the uncertainties associated with the evo- lution of the pandemic. These combined factors allowed us to resume normal manufacturing and commercial operations by the end of June, closing 2020 with a quar- terly record of resin sales in the Brazilian market and sales growth in the United States, Europe and Mexico, leading to an operating recurring result of approximately R$ 11.0 billion and R$ 1.3 billion in free cash generation. FOCUS ON BUSINESS STRATEGY In corporate strategy, we made important advances in initiatives related to our defined strategic pillars. In productivity and competitiveness, we reduced the rate of accidents with and without leave by 27% compared to 2019, reaching the best result in the last four years and underscoring our non-negotiable commitment to ensuring safety for people. This improved safety record reflects the stronger commitment from all levels of leadership and the success of our Human Reliability Pro- gram, aimed at minimizing failures and losses in opera- tional processes through extensive aware vareness-raising and training for internal teams and third parties working in the plants. In addition, we renewed contracts for the supply of naphtha, ethane and propane to petrochemical plants in Brazil and implemented Transform for Value, a program designed to coordinate, accelerate and focus on the company's main process and productivity improvement initiatives, capturing an estimated cost savings of US$ 55 million per year in 2020. Regarding feedstock and supplier diversification we mitigated the effects of the shortage of raw materials for our operations in Mexico through the Fast-Track project for importing ethane from the United States, accounting for 9% of the plant utilization rate and sup- plying approximately 35,000 tons of imported ethane in the last quarter of 2020. We also advanced in geographic diversification, with the start of operations of the new polypropylene plant (Delta Project) in La Porte, Texas, ramping up to 90% utilization rate by the end of the year. This new capac- ity reinforces our leadership in the USA polypropylene market and makes us the largest producer in the Ameri- cas. The new plant enhances our balanced profile in raw materials, featuring propylene as the most relevant raw material for our global operations. Regarding the geological event in Alagoas, we reaf- firmed our commitment to the safety of people and communities in the areas in which we operate and we moved forward with the Financial Compensation and Relocation Support Program. By the end of 2020, we had relocated about 9,200 families in the neigh- borhoods affected by the geological phenomenon and presented approximately 3,500 compensation proposals, 99.7% of which were accepted. Reaching agreements with the authorities, we extinguished two public civil actions against Braskem and provisioned approximately R$ 9.2 billion to date for the relocation and compensation of families, as well as infrastructure works and the repair of environmental, urban and social impacts in the affected areas, among other actions. On the operational front, we resumed the production of our chlorine-soda plant in Maceió, and will return to integrated PVC and caustic soda production in the state of Alagoas in 2021, now using imported salt as a raw material. Aligned with ethical and governance principles, we ob- tained the independent monitorship certificate issued by the Brazilian Federal Public Ministry, the United

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