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Investor Presentaiton

2016 Braskem | Annual Report 52 WECYCLE Wecycle, Braskem's Brazilian platform for the recovery of plastic waste along the production chain, achieved important advances throughout 2016. The first polypropylene and polyethylene resins made from fully recycled content were launched. Combined production volumes can reach 50 tons per month. Braskem works in partnership with recyclers in São Paulo, which undergo an audit process that assesses legal, environmental, and social issues, as well as product quality. The polypropylene WCL H 1003 BBM is produced from recycling big bags used by the Company when transporting resins, which, previously, were being discarded. Approximately 120,000 big bag packages will be recycled annually, which should generate a potential volume of 30 tons per month of post-consumer recycled resin (PCR). The novelty may be applied in household utilities, garden products, and lids. Possible applications of polyethylene WCL L004 SCV include bags, laminated containers, tarpaulins, flexible packaging, and tubes, and it is produced from used and discarded bags at Braskem Distribution Centers. The total volume of recycled resin can reach 20 tons per month in 2017, which represents the monthly recycling of approximately 200,000 bags. BRASKEM LABS In 2016, Braskem held the second edition of Braskem Labs, an incentive program for entrepreneurs that have solutions focused on sustainability and innovation, and have social impact. The program, developed in partnership with Endeavor - a global, non-profit organization fostering entrepreneurship - has broadened its thematic scope by accepting applications for chemical solutions, as well as looking at proposals for social and environmental solutions for plastic. As a special topic of the year, Braskem Labs will also select two projects to combat the Aedes aegypti mosquito. In 2016, Braskem Labs received 190 registrations, an increase of 19.5% over last year. Of the total, 12 projects sent by young Brazilian entrepreneurs from the states of São Paulo, Santa Catarina, Rio Grande do Sul, Amazonas, and Pernambuco, were selected for development. The selected proposals were chosen considering the innovation of the proposal, the business model, social impact, market potential, and entrepreneur profile of the proponents. Participants were individually monitored by a Braskem Leader, selected according to the similarity between their business experiences and the challenges of each entrepreneur, having received at least four sessions of individual and collective mentoring on topics relevant to their business, as well as contents online, tailor made by Endeavor. Through the program, entrepreneurs also have access to a network of strategic players in their market - including potential Clients, partners, and investors, as well as several Braskem teams, such as Innovation, Sustainability, and Marketing. In all, 54 mentors became involved with the program, between Braskem Leaders and mentors from the Endeavor network. The entrepreneurs participated in three classroom training events and closed the program with Demo Day, where they presented their solutions to an audience of 180 Braskem investors, mentors, partners and clients. At the end of this edition, Braskem spoke with participating entrepreneurs seeking their evaluation of the program. In all, 48 business connections relevant to the companies were made on behalf of Braskem Labs. Half the entrepreneurs said that the program generated business for their company, and 75% developed improvements in their solution or even made a new product. Another 67% obtained investment in 2016, and two entrepreneurs attributed the result directly to their participation in the program. The overall evaluation uses the Net Promoter Score methodology, which shows how much the participants would recommend the experience to another entrepreneur at the same level. The result, of 9.1 out of a possible 10, indicates the highest level of satisfaction and confirms that respondents will indeed act as promoters of the program. Braskem LABS LEARN ABOUT THE PROJECTS SELECTED ON BRASKEM LABS WEBSITE (portuguese only)
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