Diversified portfolio of products, operations in Brazil and abroad lead Braskem to a good result in 2022.

SAO PAULO: BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) the largest resin producer in the Americas and the world's leading biopolymers producer, presents its 4Q22 Earnings Release.

4Q22 HIGHLIGHTS

CONSOLIDATED

During the fourth quarter of 2022, petrochemical and chemical products spreads in the international market continued to be impacted by the dynamics between global supply and demand. Several factors contributed to the lower demand in the period, including (i) the "zero-COVID" policy measures impacting China's growth; and (ii) the uncertainties of the scenario in the United States and Europe. Additionally, the increase in products supply with the new PE and PP capacities coming online in the United States and in China also contributed to decline the petrochemical and chemical spreads in the international market.

In this scenario, the Company's Recurring EBITDA in 4Q22 was negative in US$32 million (-R$168 million), a decrease from 3Q22 and 4Q21, mainly explained by (i) the lower international spreads for PE, PP, PVC and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; (ii) the lower sales volume of resins and main chemicals in the Brazil segment, of PP in Europe and of PE in the Mexico segment; (iii) the seasonal restatement of provisions, with no impact on cash generation, in the amount of around R$248 million; and (iv) the 6% appreciation of the Brazilian real against the U.S. dollar between 4Q22 and 4Q21. These effects were partially offset by the higher sales volume of Green PE in the Brazil segment and PP in the United States.

In 2022, the Company's Recurring EBITDA was US$2.1 billion, 64% lower than 2021, due to (i) the lower international spreads for PE, PP and PVC in Brazil, for PP in the United...

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