Integrated Report 2020 slide image

Integrated Report 2020

INTEGRATED Braskem STRATEGIC PLANNING REPORT 2020 A MESSAGE FROM THE BUSINESS LEADER BRASKEM CAPITAL PERFORMANCE ABOUT THE REPORT CREDITS ŵ ( 23 ) VINYL OPERATION During the chlorine-soda unit shutdown, we imported caustic soda and dichloroethane (EDC) to honor our commitments to customers. In order to resume our chlorine-soda operation, we focused on the acquisition of sea salt from third parties to be used as raw material for the chlorine-soda plant in Alagoas, replacing brine. The estimated cost of this acquisition project is approx- imately R$ 68 million, out of which R$ 64 million was spent in 2020. We announced plant start-up in February 2021. After completing the commissioning process ob- serving all applicable safety standards, we resumed pro- duction of chlorine-soda and EDC at the chlorine-soda plant in Alagoas, going back to our integrated vertical business model in Vinyl. We ended 2020 with a provision of R$ 9.2 billion to fulfill the commitments arising from the Maceió case FINANCIAL IMPACT Considering the agreements signed, our internal eval- uation and assessment by external consultants, and taking into account the short- and long-term effects of the technical studies, the existing information and the best estimate of the expenses for the im- plementation of the various measures related to the geological event in Alagoas, we closed the year with approximately R$ 9.2 billion provisioned to comply with the obligations resulting from the agreements, in contrast with the R$ 3.4 billion provisioned in 2019. Over the course of 2020, approximately R$ 1.2 billion was spent on PCF-related expenses, on the closure and monitoring of wells and social/urban measures, among other expenses. Approximately R$ 409 million out of the total was written off from the current ac- count balance intended only for the fulfillment of PCF obligations. Additionally, within the Residents' Compensa- tion Agreement, the Company, DPE, MPF, MPE and DPU agreed to transfer an additional R$ 1 billion to Braskem's bank account specifically for PCF Fund- ing in 10 monthly installments of R$ 100 million each, starting in January 2021. As of May 5, 2021, the Company had made four deposits of R$100 million each, with the other six remaining de- posits scheduled for the subsequent months. EISTERNER
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