Investments | 11 Investments See the accounting policy in Note 2.3 Basis of Consolidation. (a) Information on investments Schedule of Information on investments Net profit (loss) for the year Equity 2022 2021 2020 2022 2021 Jointly-controlled investment RPR (i) 76,450 312 (63,525) 110,040 50,064 Bioglycols LLC (ii) (3,977) - 80,757 - Associate Borealis (iii) 53,617 45,490 6,019 252,053 205,568 (i) RPR's main activities are the refining, processing and sale and import of oil, its byproducts and correlated products. The percentage of Braskem's equity interest in the capital of RPR on December 31, 2022 is 33.20 33.20 (ii) Bioglycols was incorporated in March 2022, which currently is in the pre-operational phase. Its main activities will be the production and marketing of monoethylene glycol (MEG) and monopropylene glycol (MPG). (iii) Borealis' main activities are the production and commercialization of petrochemical byproducts and correlated products. The percentage of Braskem's ownership interest in the capital of Borealis on December 31, 2022 is 20 20 (b) Changes in investments Schedule of Changes in investments Borealis RPR Bioglycols LLC Other Total 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 Other 1,001 1,001 Balance at 2021 41,113 16,625 – 1,185 58,923 Dividends and interest on equity (5,013) (4,296) (9,309) Equity in results of investees 11,296 25,384 (1,832) 34,848 Other comprehensive income (1,174) 1,299 (788) (663) Capital increase 41,908 23,061 64,969 Other 255 255 Balance at 2022 47,396 36,539 41,375 23,713 149,023 (c) Impact on the consolidation of Braskem Idesa The Company presents the financial information of the subsidiary Braskem Idesa, which holds a non-controlling interest with material effects on the Company’s consolidated statements: Schedule of financial information of the subsidiary in which the non-controlling shareholder holds interests Statement of Financial Position Consolidated Braskem without the effect off Braskem Idesa consolidated Consolidated Braskem Idesa (i) Eliminations Consolidated 2022 2021 2022 2021 2022 2021 2022 2021 Assets Curent Cash and cash equivalents 10,282,142 6,907,355 2,184,332 1,773,331 - - 12,466,474 8,680,686 Financial investments 2,295,497 3,492,710 - - - - 2,295,497 3,492,710 Trade accounts receivable 3,621,335 6,607,762 73,195 1,225,479 (462,596) (679,676) 3,231,934 7,153,565 Inventories 12,921,617 15,325,001 1,108,447 1,010,100 - - 14,030,064 16,335,101 Taxes recoverable 905,844 1,402,100 250,511 26,558 - - 1,156,355 1,428,658 Recoverable income taxes 392,062 1,189,812 - - - - 392,062 1,189,812 Derivatives 157,906 33,816 - - - - 157,906 33,816 Other receivables 628,447 841,473 68,544 137,624 30,373 - 727,364 979,097 Total current assets 31,204,850 35,800,029 3,685,029 4,173,092 (432,223) (679,676) 34,457,656 39,293,445 Non-current Taxes recoverable 1,328,695 983,655 288,974 268,403 - - 1,617,669 1,252,058 Recoverable income taxes 252,995 230,069 - - - - 252,995 230,069 Deferred tax assets 6,671,492 6,481,642 488,116 1,775,610 (801,007) - 6,358,601 8,257,252 Related parties 7,250,756 10,064,320 - - (ii) (7,250,756) (10,064,320) - - Derivatives 71,544 51 - - - - 71,544 51 Judicial deposits 215,274 194,212 - - - - 215,274 194,212 Other receivables 187,107 370,928 563 24,964 - - 187,670 395,892 Investments 149,023 58,923 - - - - 149,023 58,923 Property, plant and equipment 24,319,015 23,510,588 14,126,939 14,483,720 (iii) (682,659) (769,178) 37,763,295 37,225,130 Intangible 2,730,124 2,572,675 292,020 304,624 - - 3,022,144 2,877,299 Right of use of assets 3,638,507 2,427,633 910,900 352,404 (v) (596,420) - 3,952,987 2,780,037 Total non current assets 46,814,532 46,894,696 16,107,512 17,209,725 (9,330,842) (10,833,498) 53,591,202 53,270,923 Total assets 78,019,382 82,694,725 19,792,541 21,382,817 (9,763,065) (11,513,174) 88,048,858 92,564,368 Liabilities and shareholders' equity Current Trade payables 11,418,031 11,861,563 1,291,347 871,379 (462,596) (679,676) 12,246,782 12,053,266 Borrowings 1,254,550 1,343,494 - - - - 1,254,550 1,343,494 Debentures 127,801 59,088 - - - - 127,801 59,088 Braskem Idesa Borrowings - - 868,635 86,765 - - 868,635 86,765 Payroll and related charges 789,441 1,095,040 38,385 75,306 - - 827,826 1,170,346 Taxes payable 481,729 1,003,813 9,322 8,303 - - 491,051 1,012,116 Income taxes payable 381,117 1,672,844 - - - - 381,117 1,672,844 Lease 955,225 598,523 195,518 76,843 (v) (111,037) - 1,039,706 675,366 Provision - geological event in Alagoas 4,247,609 4,378,071 - - - - 4,247,609 4,378,071 Other payables 2,645,828 2,495,544 24,283 246,623 30,059 - 2,700,170 2,742,167 Total current liabilities 22,301,331 24,507,980 2,427,490 1,365,219 (543,574) (679,676) 24,185,247 25,193,523 Non-current Loan agreements 31,310,710 33,553,766 - - - - 31,310,710 33,553,766 Braskem Idesa Borrowings - - 10,501,683 12,224,770 - - 10,501,683 12,224,770 Debentures 3,023,674 137,830 - - - - 3,023,674 137,830 Accounts payable to related parties - - 7,175,837 10,134,287 (ii) (7,175,837) (10,134,287) - - Loan to non-controlling shareholders of Braskem Idesa - - 2,498,093 3,646,538 - - 2,498,093 3,646,538 Deferred tax liabilities 904,521 1,407,434 1,049,967 - (801,007) - 1,153,481 1,407,434 Provision for losses on subsidiaries 4,094,535 5,284,666 - - (iv) (4,094,535) (5,284,666) - - Lease 2,942,284 2,147,745 746,285 333,303 (v) (487,745) - 3,200,824 2,481,048 Provision - geological event in Alagoas 2,378,949 3,283,188 - - - - 2,378,949 3,283,188 Other payables 3,590,317 4,406,733 97,663 25,710 - - 3,687,980 4,432,443 Total non current liabilities 48,244,990 50,221,362 22,069,528 26,364,608 (12,559,124) (15,418,953) 57,755,394 61,167,017 Shareholders' equity Attributable to the Company's shareholders 7,321,798 7,865,819 (4,704,477) (6,347,010) 4,704,478 6,347,010 7,321,799 7,865,819 Non-controlling interest in subsidiaries 151,263 99,564 - - (1,364,845) (1,761,555) (1,213,582) (1,661,991) Total shareholders equity 7,473,061 7,965,383 (4,704,477) (6,347,010) 3,339,633 4,585,455 6,108,217 6,203,828 Total liabilities and shareholders' equity 78,019,382 82,694,725 19,792,541 21,382,817 (9,763,065) (11,513,174) 88,048,858 92,564,368 (i) Consolidation of Braskem Idesa with its subsidiaries Braskem Idesa Servicios and Terminal Química. (ii) Loan from Braskem Holanda to the Braskem Idesa project. (iii) Adjustment corresponding to the capitalization of a portion of financial charges of the abovementioned loan. (iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. (v) Sublease agreed between the subsidiary Braskem Holanda and Braskem Idesa. Statement of profit or loss Consolidated Braskem without the effect of Braskem Idesa consolidated Consolidated Braskem Idesa Eliminations Consolidated 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 Net revenue 93,038,949 101,448,155 55,779,528 5,953,229 6,333,199 4,046,581 (2,472,894) (2,156,153) (1,282,615) 96,519,284 105,625,201 58,543,494 Cost of products sold (82,624,987) (72,471,291) (45,563,723) (5,074,693) (3,321,601) (3,112,129) 2,539,132 2,224,661 1,344,438 (85,160,548) (73,568,231) (47,331,414) Gross profit 10,413,962 28,976,864 10,215,805 878,536 3,011,598 934,452 66,238 68,508 61,823 11,358,736 32,056,970 11,212,080 Income (expenses) Selling and distribution (1,890,181) (1,834,303) (1,609,844) (218,236) (221,337) (242,211) – – – (2,108,417) (2,055,640) (1,852,055) (Loss) reversals for impairment of trade accounts receivable (38,248) (8,736) (55,074) (178) (178) (178) – – – (38,426) (8,914) (55,252) General and administrative (2,545,044) (2,292,884) (1,739,541) (216,098) (229,334) (179,350) (2,841) 91 144 (2,763,983) (2,522,127) (1,918,747) Research and development (374,493) (296,583) (250,648) – – – – – – (374,493) (296,583) (250,648) Results from equity-accounted investees (1,078,115) (82,709) (1,026,922) 7 – – 1,112,956 87,353 1,007,524 34,848 4,644 (19,398) Other income 505,629 1,530,443 748,923 1,704 4,044 1,826 – – – 507,333 1,534,487 750,749 Other expenses (2,305,411) (2,651,425) (7,573,874) (38,114) (17,865) (364,747) - - - (2,343,525) (2,669,290) (7,938,621) Operating profit 2,688,099 23,340,667 (1,291,175) 407,621 2,546,928 149,792 1,176,353 155,952 1,069,491 4,272,073 26,043,547 (71,892) Financial results Financial expenses (5,013,176) (4,750,895) (3,851,233) (1,817,551) (1,618,020) (1,505,628) 1,168,034 461,760 443,496 (5,662,693) (5,907,155) (4,913,365) Financial income 2,558,268 2,276,312 1,032,530 610,792 12,886 11,150 (1,158,926) (461,760) (443,496) 2,010,134 1,827,438 600,184 Exchange rate variations, net (643,377) (2,884,292) (4,823,269) 235,314 (1,164,697) (482,125) (164,107) 46,182 6,683 (572,170) (4,002,807) (5,298,711) Finance income (cost) (3,098,285) (5,358,875) (7,641,972) (971,445) (2,769,831) (1,976,603) (154,999) 46,182 6,683 (4,224,729) (8,082,524) (9,611,892) (Loss) profit before income tax and social contribution (410,186) 17,981,792 (8,933,147) (563,824) (222,903) (1,826,811) 1,021,354 202,134 1,076,174 47,344 17,961,023 (9,683,784) Income taxes 95,651 (3,991,055) 2,253,684 (963,386) (8,348) 414,794 - - - (867,735) (3,999,403) 2,668,478 (Loss) net profit for the year (314,535) 13,990,737 (6,679,463) (1,527,210) (231,251) (1,412,017) 1,021,354 202,134 1,076,174 (820,391) 13,961,620 (7,015,306) Statement of cash flows Consolidated Braskem without the effect of Braskem Idesa consolidated Consolidated Braskem Idesa Eliminations Consolidated 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 (Loss) profit before taxes (410,186) 18,348,774 (8,933,147) (563,824) (222,903) (1,826,811) 1,021,354 (164,848) 1,076,174 47,344 17,961,023 (9,683,784) Adjustments for reconciliation of profit (loss) – – – Depreciation and amortization 3,944,259 3,432,816 2,995,609 901,194 796,861 1,114,439 (112,288) (51,244) (61,967) 4,733,165 4,178,433 4,048,081 Results from equity-accounted investees 1,078,108 (78,567) 1,026,922 – – – (1,112,956) 73,923 (1,007,524) (34,848) (4,644) 19,398 Interest and monetary and exchange variations, net 1,788,259 3,604,357 8,541,980 759,378 2,564,905 1,921,975 154,999 142,169 (6,683) 2,702,636 6,311,431 10,457,272 Reversal of provisions 370,153 819,130 336,838 – – – – – – 370,153 819,130 336,838 Provision - geological event in Alagoas 1,520,019 1,339,765 6,901,828 – – – – – – 1,520,019 1,339,765 6,901,828 PIS and Cofins credits - exclusion of ICMS from the calculation basis – (1,031,099) (310,557) – – – – – – – (1,031,099) (310,557) Loss for impairment of trade accounts receivable 38,426 10,134 55,252 – (1,220) – – – – 38,426 8,914 55,252 Provision for losses and write-offs of long-lived assets 130,366 114,148 8,794 629 1,039 – – – – 130,995 115,187 8,794 Adjustments for reconciliation of profit 8,459,404 26,559,458 10,623,519 1,097,377 3,138,682 1,209,603 (48,891) – – 9,507,890 29,698,140 11,833,122 Changes in operating working capital – – – – – – Judicial deposits - unfreezing (blocking) Public Civil Action – – 3,746,107 – – – – – – – – 3,746,107 Financial investments 1,530,050 296,957 (1,860,827) – – – – – – 1,530,050 296,957 (1,860,827) Trade accounts receivable 2,751,788 (1,739,822) (2,247,729) 1,126,559 (619,688) (152,971) (217,080) 184,225 212,874 3,661,267 (2,175,285) (2,187,826) Inventories 2,246,770 (7,176,104) (309,492) (108,609) (398,181) 56,958 – – – 2,138,161 (7,574,285) (252,534) Taxes recoverable 928,181 4,958,779 1,584,911 (245,724) 4,808 (52,357) – – – 682,457 4,963,587 1,532,554 Prepaid expenses – – (172,027) – – 465,812 – – – – – 293,785 Other receivables 297,209 (269,721) 44,513 13,580 71,165 352,590 – – – 310,789 (198,556) 397,103 Trade payables (73,230) 955,475 (2,926,585) 370,229 428,364 137,895 217,080 (184,225) (212,874) 514,079 1,199,614 (3,001,564) Taxes payable (1,085,427) (2,878,056) 965,191 76,071 (129,432) (515,430) – – – (1,009,356) (3,007,488) 449,761 Advances from customers – – 224,764 – – (25,776) – – – – – 198,988 Leniency agreement (317,867) (389,087) (349,842) - – – – – – (317,867) (389,087) (349,842) Sundry provisions (219,313) (482,565) (158,915) (187,274) 168,371 13,560 – – – (406,587) (314,194) (145,355) Geological event in Alagoas (2,742,791) (2,928,081) (1,181,931) - – – – – – (2,742,791) (2,928,081) (1,181,931) Other payables (384,838) 823,515 (217,997) (5,889) (18,063) 33,810 – – – (390,727) 805,452 (184,187) Cash generated from operations 11,389,936 17,730,748 7,763,660 2,136,320 2,646,026 1,523,694 (48,891) – – 13,477,365 20,376,774 9,287,354 Interest paid (2,118,043) (2,207,196) (1,946,931) (786,836) (676,237) (789,890) – – – (2,904,879) (2,883,433) (2,736,821) Income taxes (1,620,616) (2,697,829) (252,479) (131) (9,027) (5,063) – – – (1,620,747) (2,706,856) (257,542) Net cash generated by operating activities 7,651,277 12,825,723 5,564,250 1,349,353 1,960,762 728,741 (48,891) – – 8,951,739 14,786,485 6,292,991 Proceeds from the sale of fixed assets and intangible assets 2,438 40,353 33,140 – – – – – 2,438 40,353 33,140 Additions to investment in subsidiaries (107,090) – – – – (107,090) – – Dividends received 5,660 295 4,822 – – – – – 5,660 295 4,822 Acquisitions to property, plant and equipment and intangible assets (4,153,707) (3,249,132) (2,653,009) (694,574) (172,192) (106,780) – – – (4,848,281) (3,421,324) (2,759,789) Net cash used in investing activities (4,252,699) (3,208,484) (2,615,047) (694,574) (172,192) (106,780) – – – (4,947,273) (3,380,676) (2,721,827) Short-term and long-term debt Acquired 6,418,208 16,308 13,049,459 - – – – – – 6,418,208 16,308 13,049,459 Payments (3,855,662) (9,413,909) (8,734,505) - – – – – – (3,855,662) (9,413,909) (8,734,505) Braskem Idesa borrowings – – – Acquired – – - 7,271,658 – – – – 7,271,658 – Payments – – (45,311) (7,995,045) (905,210) – – (45,311) (7,995,045) (905,210) Related parts – 216,862 (34,122) (226,407) – – (34,122) (9,545) – Loan to non-controlling shareholders of Braskem Idesa - payment (37,618) – – (37,618) Lease (836,718) (787,932) (610,392) (141,063) (53,774) (51,676) 48,891 – – (928,890) (841,706) (662,068) Dividends paid (1,350,293) (5,993,265) (2,380) – – – – – – (1,350,293) (5,993,265) (2,380) Non-controlling interest in subsidiaries 21,162 – (534,456) – – – – – – 21,162 – (534,456) Cash generated (used) in financing activities 396,697 (15,961,936) 3,167,726 (220,496) (1,003,568) (994,504) 48,891 – – 225,092 (16,965,504) 2,173,222 Exchange variation on cash of foreign subsidiaries (420,488) 293,633 1,054,845 (23,282) 83,896 259,741 – – – (443,770) 377,529 1,314,586 Increase in cash and cash equivalents 3,374,787 (6,051,064) 7,171,774 411,001 868,898 (112,802) - - - 3,785,788 (5,182,166) 7,058,972 Represented by Cash and cash equivalents at the beginning for the period 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 Cash and cash equivalents at the end for the period 10,282,142 6,907,355 12,958,419 2,184,332 1,773,331 904,433 – – – 12,466,474 8,680,686 13,862,852 Increase in cash and cash equivalents 3,374,787 (6,051,064) 7,171,774 411,001 868,898 (112,802) - - - 3,785,788 (5,182,166) 7,058,972 |