Investments | Investments See the accounting policy in Note 2.3 Basis of Consolidation. (a) Information on investments Interest in total and Net profit (loss) for the year Equity voting capital (%) 2021 2020 2019 2021 2020 Jointly-controlled investment RPR (i) 33.20 312 (63,525) 29,687 50,064 32,217 Associate - - - - - Borealis (ii) 20.00 45,490 6,019 17,622 205,568 161,363 (i) The main activities are the refine, processing and sale and import of oil, its byproducts and correlated products. (ii) The main activities are the production and commercialization of petrochemical byproducts and correlated products. (b) Changes in investments Domestic associate Borealis RPR Other Total Balance at 2019 32,816 30,887 140 63,843 Dividends and interest on equity (1,748) (164) (1,912) Equity in results of investees 1,204 (21,093) (19,889) Other comprehensive income 1,067 1,067 Other 44 44 Balance at 2020 32,272 10,697 184 43,153 Dividends and interest on equity (295) (295) Equity in results of investees 9,136 103 9,239 Other comprehensive income 5,825 5,825 Capital increase 1,001 1,001 Balance at 2021 41,113 16,625 1,185 58,923 (c) Impact on the consolidation of Braskem Idesa In light of the allegations of undue payments related to the Ethylene XXI project, which were originally published in the media in Mexico and were included in the testimony by the former CEO of Pemex to the Office of the Attorney General of Mexico, Braskem S.A., together with Braskem Idesa, in compliance with the standards established by Braskem’s Global Compliance System Policy and Braskem Idesa’s governance guidelines, approved the hiring of an U.S. law firm with proven experience in similar cases to conduct an independent internal investigation of the allegations. The investigation was concluded in February 2022 and did not find evidence to support the allegations by the former CEO of Pemex regarding allegedly improper payments in connection with or otherwise related to the Ethylene XXI project. The Company presents the financial information of the subsidiary in which the non-controlling shareholder holds interests, and the material effects on the Company’s consolidated statements: Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated (i) Eliminations Consolidated 2021 2020 2021 2020 2021 2020 2021 2020 Assets Curent Cash and cash equivalents 6,907,355 12,958,419 1,773,331 904,433 8,680,686 13,862,852 Financial investments 3,492,710 3,627,227 3,492,710 3,627,227 Trade accounts receivable 6,607,762 4,386,825 1,225,479 577,530 (679,676) (232,376) 7,153,565 4,731,979 Inventories 15,325,001 7,876,485 1,010,100 507,165 16,335,101 8,383,650 Taxes recoverable 1,402,100 1,144,355 26,558 48,310 1,428,658 1,192,665 Recoverable income taxes 1,189,812 1,547,916 1,189,812 1,547,916 Derivatives 33,816 33,769 33,816 33,769 Other current assets 841,473 688,944 137,624 121,242 979,097 810,186 Total current assets 35,800,029 32,263,940 4,173,092 2,158,680 (679,676) (232,376) 39,293,445 34,190,244 Non-current Financial investments 16,845 15,564 16,845 15,564 Taxes recoverable 983,655 847,399 268,403 225,338 1,252,058 1,072,737 Income tax and social contribution 230,069 72,267 230,069 72,267 Deferred tax assets 6,481,642 6,658,276 1,775,610 1,871,696 8,257,252 8,529,972 Related parties 10,064,320 9,122,666 (ii) (10,064,320) (9,122,666) Derivatives 51 34,091 51 34,091 Judicial deposits 194,212 196,911 194,212 196,911 Other non-current assets 354,083 251,398 24,964 17,347 379,047 268,745 Investments 58,923 43,153 58,923 43,153 Property, plant and equipment 23,510,588 22,295,803 14,483,720 14,436,012 (iii) (769,178) (802,666) 37,225,130 35,929,149 Intangible 2,572,675 2,568,869 304,624 259,822 2,877,299 2,828,691 Right of use of assets 2,427,633 2,509,484 352,404 392,911 2,780,037 2,902,395 Total non current assets 46,894,696 44,615,881 17,209,725 17,203,126 (10,833,498) (9,925,332) 53,270,923 51,893,675 Total assets 82,694,725 76,879,821 21,382,817 19,361,806 (11,513,174) (10,157,708) 92,564,368 86,083,919 Liabilities and shareholders' equity Current Trade payables 11,861,563 9,753,762 871,379 424,929 (679,676) (232,376) 12,053,266 9,946,315 Borrowings 1,343,494 1,318,931 1,343,494 1,318,931 Debentures 59,088 54,436 59,088 54,436 Braskem Idesa Borrowings 86,765 7,660,128 86,765 7,660,128 Payroll and related charges 1,095,040 776,134 75,306 38,432 1,170,346 814,566 Taxes payable 1,003,813 927,039 8,303 25,650 1,012,116 952,689 Income tax and social contribution 1,672,844 284,129 1,672,844 284,129 Lease 598,523 821,695 76,843 73,414 675,366 895,109 Provision - geological event in Alagoas 4,378,071 4,349,931 4,378,071 4,349,931 Other current liabilities 2,495,544 1,947,569 246,623 163,371 2,742,167 2,110,940 Total current liabilities 24,507,980 20,233,626 1,365,219 8,385,924 (679,676) (232,376) 25,193,523 28,387,174 Non-current Loan agreements 33,553,766 40,413,192 33,553,766 40,413,192 Braskem Idesa Borrowings 12,224,770 4,399,110 12,224,770 4,399,110 Debentures 137,830 181,679 137,830 181,679 Accounts payable to related parties 10,134,287 9,140,064 (ii) (10,134,287) (9,140,064) Loan to non-controlling shareholders of Braskem Idesa (v) 3,646,538 3,222,493 3,646,538 3,222,493 Income tax and social contribution 576,174 576,174 Deferred tax liabilities 1,407,434 1,234,398 1,407,434 1,234,398 Provision for losses on subsidiaries 5,284,666 5,283,264 (iv) (5,284,666) (5,283,264) Lease 2,147,745 1,962,235 333,303 350,542 2,481,048 2,312,777 Provision - geological event in Alagoas 3,283,188 4,825,846 3,283,188 4,825,846 Other non-current liabilities 4,406,733 4,274,837 25,710 122,757 4,432,443 4,397,594 Total non current liabilities 50,221,362 58,751,625 26,364,608 17,234,966 (15,418,953) (14,423,328) 61,167,017 61,563,263 Shareholders' equity Attributable to theCompany's shareholders 7,865,819 (2,202,306) (6,347,010) (6,259,084) 6,347,010 6,259,084 7,865,819 (2,202,306) Non-controlling interest in subsidiaries 99,564 96,876 (1,761,555) (1,761,088) (1,661,991) (1,664,212) Total shareholders equity 7,965,383 (2,105,430) (6,347,010) (6,259,084) 4,585,455 4,497,996 6,203,828 (3,866,518) Total liabilities and shareholders' equity (net capital deficiency) 82,694,725 76,879,821 21,382,817 19,361,806 (11,513,174) (10,157,708) 92,564,368 86,083,919 (i) Consolidation of Braskem Idesa with its direct subsidiaries Braskem Idesa Serviços and Terminal Química. (ii) Loan from Braskem Holanda as part of shareholders’ contribution to the Braskem Idesa project. (iii) Adjustment corresponding to the capitalization of a portion of financial charges of the above-mentioned loan. (iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. (v) Loan payable, maturing December 2029 and 7% p.a., to the non-controlling shareholders of Braskem Idesa. These proceeds were used by Braskem Idesa to fund its construction project. Statement of profit or loss Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Net revenue 101,448,155 55,779,528 49,961,286 6,333,199 4,046,581 3,050,420 (2,156,153) (1,282,615) (688,181) 105,625,201 58,543,494 52,323,525 Cost of products sold (72,471,291) (45,563,723) (44,111,980) (3,321,601) (3,112,129) (2,509,060) 2,224,661 1,344,438 741,922 (73,568,231) (47,331,414) (45,879,118) 28,976,864 10,215,805 5,849,306 3,011,598 934,452 541,360 68,508 61,823 53,741 32,056,970 11,212,080 6,444,407 Income (expenses) Selling and distribution (1,834,303) (1,609,844) (1,582,794) (221,337) (242,211) (200,661) (2,055,640) (1,852,055) (1,783,455) (Loss) reversals for impairment (8,736) (55,074) (4,772) (178) (178) (2,297) (8,914) (55,252) (7,069) General and administrative (2,292,884) (1,739,541) (2,082,002) (229,334) (179,350) (141,269) 91 144 (909) (2,522,127) (1,918,747) (2,224,180) Research and development (296,583) (250,648) (247,730) (296,583) (250,648) (247,730) Results from equity-accounted investees (82,709) (1,026,922) (326,427) 87,353 1,007,524 336,645 4,644 (19,398) 10,218 Other income 1,530,443 748,923 2,102,684 4,044 1,826 305,750 1,534,487 750,749 2,408,434 Other expenses (2,651,425) (7,573,874) (4,466,450) (17,865) (364,747) 19,508 (2,669,290) (7,938,621) (4,446,942) 23,340,667 (1,291,175) (758,185) 2,546,928 149,792 522,391 155,952 1,069,491 389,477 26,043,547 (71,892) 153,683 Financial results Financial expenses (4,750,895) (3,851,233) (3,009,471) (1,618,020) (1,505,628) (1,205,412) 461,760 443,496 332,098 (5,907,155) (4,913,365) (3,882,785) Financial income 2,276,312 1,032,530 1,135,118 12,886 11,150 47,534 (461,760) (443,496) (332,098) 1,827,438 600,184 850,554 Exchange rate variations, net (2,884,292) (4,823,269) (1,768,850) (1,164,697) (482,125) 75,610 46,182 6,683 (31,280) (4,002,807) (5,298,711) (1,724,520) (5,358,875) (7,641,972) (3,643,203) (2,769,831) (1,976,603) (1,082,268) 46,182 6,683 (31,280) (8,082,524) (9,611,892) (4,756,751) Profit (loss) before income tax 17,981,792 (8,933,147) (4,401,388) (222,903) (1,826,811) (559,877) 202,134 1,076,174 358,197 17,961,023 (9,683,784) (4,603,068) Income taxes (3,991,055) 2,253,684 1,873,207 (8,348) 414,794 89,463 (3,999,403) 2,668,478 1,962,670 (3,991,055) 2,253,684 1,873,207 (8,348) 414,794 89,463 (3,999,403) 2,668,478 1,962,670 Net profit (loss) for the year 13,990,737 (6,679,463) (2,528,181) (231,251) (1,412,017) (470,414) 202,134 1,076,174 358,197 13,961,620 (7,015,306) (2,640,398) Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Profit (loss) before income tax 17,981,792 (8,933,147) (4,401,388) (222,903) (1,826,811) (559,877) 202,134 1,076,174 358,197 17,961,023 (9,683,784) (4,603,068) Adjustments for reconciliation of profit (loss) Depreciation and amortization 3,450,171 2,995,609 2,732,181 796,861 1,114,439 952,916 (68,599) (61,967) (52,832) 4,178,433 4,048,081 3,632,265 Results from equity-accounted investees 82,709 1,026,922 326,427 (87,353) (1,007,524) (336,645) (4,644) 19,398 (10,218) Net interest, monetary and foreign exchange gain/losses 3,792,708 8,541,980 3,050,987 2,564,905 1,921,975 1,062,843 (46,182) (6,683) 31,280 6,311,431 10,457,272 4,145,110 Provisions (reversal and recovery of credits), net 819,130 336,838 320,439 819,130 336,838 320,439 Provision - geological event in Alagoas 1,339,765 6,901,828 3,383,067 1,339,765 6,901,828 3,383,067 PIS and COFINS credits - exclusion of ICMS (1,031,099) (310,557) (1,904,206) (1,031,099) (310,557) (1,904,206) Loss (reversals) for impairment of trade accounts receivable 10,134 55,252 7,069 (1,220) 8,914 55,252 7,069 Provision for losses and write-offs of long-lived assets 114,148 8,794 224,825 1,039 379 115,187 8,794 225,204 Adjustments for reconciliation of profit 26,559,458 10,623,519 3,739,401 3,138,682 1,209,603 1,456,261 29,698,140 11,833,122 5,195,662 Changes in operating assets and liabilities Judicial deposits - unfreezing (blocking) Public Civil Action 3,746,107 (3,680,460) 3,746,107 (3,680,460) Financial investments 296,957 (1,860,827) 797,445 296,957 (1,860,827) 797,445 Trade accounts receivable (2,002,897) (2,247,729) 677,176 (619,688) (152,971) 325,820 447,300 212,874 (107,950) (2,175,285) (2,187,826) 895,046 Inventories (7,176,104) (309,492) 825,236 (398,181) 56,958 42,581 (7,574,285) (252,534) 867,817 Taxes recoverable 4,958,779 1,584,911 1,216,225 4,808 (52,357) (20,798) 4,963,587 1,532,554 1,195,427 Prepaid expenses (67,923) (172,027) 85,549 87,245 465,812 117,183 19,322 293,785 202,732 Other receivables (201,798) 44,513 (242,727) (16,080) 352,590 (30,938) (217,878) 397,103 (273,665) Trade payables 1,218,550 (2,926,585) 330,633 428,364 137,895 (156,138) (447,300) (212,874) 107,950 1,199,614 (3,001,564) 282,445 Taxes payable (2,878,056) 965,191 (485,309) (129,432) (515,430) (84,484) (3,007,488) 449,761 (569,793) Advances from customers (217,159) 224,764 176,189 (16,792) (25,776) 21,776 (233,951) 198,988 197,965 Leniency agreement (389,087) (349,842) (341,605) (389,087) (349,842) (341,605) Sundry provisions (482,565) (158,915) (226,519) 168,371 13,560 10,971 (314,194) (145,355) (215,548) Geological event in Alagoas (2,928,081) (1,181,931) (2,928,081) (1,181,931) Other payables 1,040,674 (217,997) 348,916 (1,271) 33,810 13,287 1,039,403 (184,187) 362,203 Cash generated from operations 17,730,748 7,763,660 3,220,150 2,646,026 1,523,694 1,695,521 20,376,774 9,287,354 4,915,671 Interest paid (2,207,196) (1,946,931) (1,576,526) (676,237) (789,890) (661,919) (2,883,433) (2,736,821) (2,238,445) Income taxes paid (2,697,829) (252,479) (403,614) (9,027) (5,063) (8,337) (2,706,856) (257,542) (411,951) Net cash generated by operating activities 12,825,723 5,564,250 1,240,010 1,960,762 728,741 1,025,265 14,786,485 6,292,991 2,265,275 Proceeds from the sale of property, plant and equipment 40,353 33,140 12,590 40,353 33,140 12,590 Dividends received 295 4,822 3,513 295 4,822 3,513 Acquisitions to property, plant and equipment (3,249,132) (2,653,009) (2,578,558) (172,192) (106,780) (103,964) (3,421,324) (2,759,789) (2,682,522) Net cash used in investing activities (3,208,484) (2,615,047) (2,562,455) (172,192) (106,780) (103,964) (3,380,676) (2,721,827) (2,666,419) Short-term and long-term debt Acquired 16,308 13,049,459 20,586,103 16,308 13,049,459 20,586,103 Payments (9,413,909) (8,734,505) (17,425,409) (9,413,909) (8,734,505) (17,425,409) Braskem Idesa borrowings Acquired 7,271,658 3,497,622 7,271,658 3,497,622 Payments (7,995,045) (905,210) (4,398,453) (7,995,045) (905,210) (4,398,453) Loan to non-controlling shareholders 216,862 (226,407) (37,618) (9,545) (37,618) Lease payments (787,932) (610,392) (407,320) (53,774) (51,676) (46,870) (841,706) (662,068) (454,190) Dividends paid (5,993,265) (2,380) (668,904) (5,993,265) (2,380) (668,904) Other financial liabilities (534,456) 499,999 (534,456) 499,999 Cash generated (used) in financing activities (15,961,936) 3,167,726 2,584,469 (1,003,568) (994,504) (947,701) (16,965,504) 2,173,222 1,636,768 Exchange variation on cash of foreign subsidiaries 293,633 1,054,845 (59,659) 83,896 259,741 80,278 377,529 1,314,586 20,619 (Decrease) increase in cash and cash equivalents (6,051,064) 7,171,774 1,202,365 868,898 (112,802) 53,878 - - - (5,182,166) 7,058,972 1,256,243 Represented by Cash and cash equivalents at the beginning for the year 12,958,419 5,786,645 4,584,280 904,433 1,017,235 963,357 - - - 13,862,852 6,803,880 5,547,637 Cash and cash equivalents at the end for the year 6,907,355 12,958,419 5,786,645 1,773,331 904,433 1,017,235 - - - 8,680,686 13,862,852 6,803,880 (Decrease) increase in cash and cash equivalents (6,051,064) 7,171,774 1,202,365 868,898 (112,802) 53,878 - - - (5,182,166) 7,058,972 1,256,243 |