The petrochemical sector continued to feel the effects of the downturn in the closing months of 2022, when spreads in the export market were affected by the global supply and demand scenario. Against this backdrop, Braskem reported recurring EBITDA of R$10.6 billion and net cash generation of R$3.3 billion in 2022. In the fourth quarter, EBITDA was a negative R$168 million, though cash generation remained positive at R$155 million.

"As a result of our commitment to disciplined cost management and efficient capital allocation, Braskem continues to report positive cash generation, while preparing itself for the challenges facing the petrochemical industry. Our raw materials, products and markets are highly diversified. Our cash position remains strong, combined with a comfortable debt repayment schedule," said Roberto Bischoff, CEO of Braskem.

The cash position at the end of 2022 was US$2.4 billion, a level that guarantees coverage of debt maturities for the next 60 months. Note that this position does not include the international stand-by credit facility of US$1.0 billion, maturing in 2026. Corporate leverage, measured by the ratio of adjusted net debt to recurring EBITDA in U.S. dollar, remained healthy, ending the year at 2.42x.

In the quarter, the Company registered net loss of R$1.7 billion, compared to net income of R$550 million in the same period in 2021. Sales revenue in the last three months of 2022 was R$19 billion, down 33% from the fourth quarter in 2021. The year ended with loss of R$336 million.

The fourth quarter results are explained by lower international spreads. These effects were partially offset by higher Green PE sales in Brazil, which totaled 179 kton - a record since the start of operations in 2010, which shows that demand for Green PE remains resilient despite market uncertainties. Capacity utilization rate of green ethylene stood at 95% in the year, outperforming other segments.

With regard to its corporate growth strategy, the Company in 2022 reviewed and consolidated its global strategy for 2030. In broad terms, it is anchored on Braskem's strategic pillars and foundations, with the focus on creating value through balanced capital allocation and priority to investments in growth avenues in order to generate value for shareholders over the cycles.

ESG

The year 2022 was marked by major advances in Braskem's circularity ecosystem. Globally, the Company sold 54 kton of products with recycled content, an increase of 144% from the previous year. In this ecosystem, Braskem invested R$67 million to build a plant in Indaiatuba, São Paulo, in partnership with Valoren to transform 250 million of post-consumer packaging into 14 kton of high-quality recycled resin per year. It also acquired 61.1% interest in Wise Plásticos, a leading recycling company in Brazil, and launched a project to produce 50 kton of recycled materials by 2026. In Europe, it formed a joint venture with Terra Circular, which developed an innovative technology to convert low-quality plastic waste into finished goods and has a recycling capacity of 23 kton per year.

Braskem also announced that it partnered with Sojitz Corporation to launch Sustainea, a joint venture with ambitions to become the global leader in the bioMEG market. Once the technology is developed, Sustainea plans to produce bioMEG (monoethylene glycol), a raw material for PET and polyesters, at three new plants with combined production capacity of up to 700 kton/y of bioMEG.

As part of our industrial decarbonization program, we have signed five long-term renewable energy agreements, which will enable Braskem to avoid around 220,000 tons of CO₂ emissions a year. More than 150 average-MW have already been contracted for the long term. The goal is for renewable energy to account for 85% of the energy matrix by 2030.

Regarding people - the foundation of the Company's strategy - our Diversity, Equity and Inclusion Program has been yield increasingly greater results. In Brazil, 34.2% of women held leadership positions and 36.3% of the employees were Black people. The targets for 2030 are 45% of women in leadership positions and 40% of Black employees.

The Vocational and Undergraduate Internship Program currently has 365 people on its rolls, with significant cutoffs for diversity and inclusion: 41% Black people, 50% women, 62% low-income and 15% LGBTQIA+. A total of 36,255 people applied for the Program.