| Geological event - Alagoas | 24 Geological event
- Alagoas The Company operated, since its formation and subsequently
as the successor of the company Salgema, salt mining wells located in Maceió city, state of Alagoas, with the purpose of supplying
raw material to its chlor-alkali and dichloroethane plant. In March 2018, an earthquake hit certain districts of Maceió, where
the wells are located, and cracks were found in buildings and public streets of Pinheiro, Bebedouro, Mutange and Bom Parto districts. In May 2019, the Geological Survey of Brazil (“CPRM”)
issued a report, indicating that the geological phenomenon observed in the region, could be related to the rock salt exploration activities
developed by Braskem. In view of these events, on May 9, 2019, Braskem preventively decided to suspend its salt mining activities and
the operation of its chlor-alkali and dichloroethane plant. Since then, the Company has been devoting its best efforts
to understand the geological event: (i) possible surface effects; and (ii) the analyses of cavities’ stability. The results are
being shared with the Brazilian National Mining Agency (“ANM”) and other pertinent authorities, which the Company has been
maintaining constant dialogue. Braskem presented to ANM the measures for shutting down its
salt mining fronts in Maceió, with measures for the closure of its cavities, and, on November 14, 2019, it proposed the creation
of a protective area surrounding certain cavities as a precautionary measure to ensure public safety. These measures are based on a study
conducted by the Institute of Geomechanics of Leipzig (IFG), in Germany, an international reference in the geomechanical analysis of areas
of salt extraction by dissolution and are being adopted in coordination with the Civil Defense of Maceió and other authorities. As a result of the geological phenomenon, negotiations were
conducted with public and regulatory authorities that resulted in the Agreements executed, including:
(i) Instrument of Agreement to Support the Relocation of People
in Risk Areas (“Agreement for Compensation of Residents"), entered into with State Prosecution Office (“MPE”),
the State Public Defender’s Office (“DPE”), the Federal Prosecution Office (“MPF”) and the Federal Public
Defender’s Office (“DPU”), which was ratified by the court on January 3, 2020, adjusted by its resolutions and subsequent
amendments, which establish cooperative actions for relocating residents from risk areas, defined in the Map of Sectors of Damages and
Priority Action Lines by the Civil Defense of Maceió (“Civil Defense Map”), as updated in December 2020 (version 4),
and guaranteed their safety, which provides support, under the Financial Compensation and Support for Relocation Program (“PCF”)
implemented by Braskem to the population in the areas of the Civil Defense Map, as well as the dismissal of the Public-Interest Civil
Action (Reparations for Residents), as detailed in Note 24.1 (i).
(ii) Instrument of Agreement with the Labor Prosecution Office
of the State of Alagoas (MPT - AL), entered into on February 14, 2020, in the amount of R$40, for implementation of the Program to Recover
Business and Promote Education for residents and workers from the districts affected by the geological phenomenon. The program consists
of support for the construction of daycare centers and schools and for administering professional training programs, as well as support
for the Civil Defense to hire skilled professionals to continue monitoring the risk areas in the districts affected. On March 3, 2020,
with the approval of the agreement by the court, the Public-Interest Civil Action (Reparation for Workers) was dismissed;
(iii) Instrument of Agreement to Dismiss the Public-Interest
Civil Action on Socio-Environmental Reparation and the Agreement to define the measures to be adopted regarding the preliminary injunctions
of the Public-Interest Civil Action on Socio-Environmental Reparation (jointly referred to as “Agreement for Socio-Environmental
Reparation”), signed with the MPF with the MPE as the intervening party, on December 30, 2020, in which the Company mainly undertook
to: (i) adopt measures to stabilize and monitor the subsidence phenomenon arising from salt mining; (ii) repair, mitigate or compensate
possible environmental impacts and damages arising from salt mining in the Municipality of Maceió; and (iii) repair, mitigate or
compensate possible socio-environmental impacts and damages arising from salt mining in the Municipality of Maceió, as well as
the termination of the Public-Interest Civil Action (Socio-environmental Reparation) related to the Company, as detailed in Note 24.1
(iii). Moreover, the Agreement for Socio-Environmental Reparation envisages the inclusion of other parties, which depends on specific
negotiation with such potential parties;
(iv) Instrument of Agreement for Implementation
of Socioeconomic Measures for the Requalification of the Flexal Area (“Flexal Agreement”) entered into with MPF, MPE, DPU
and the Municipality of Maceió and ratified on October 26, 2022 by the 3 rd in the Flexais
region, compensation to the Municipality of Maceió and indemnities to the residents of this location ;
(v) Instrument of Global Agreement with the Municipality of
Maceió (“Instrument of Global Agreement”) ratified on July 21, 2023 by the 3 rd The Company's Management, based on its assessment and that
of its external advisers, taking into account the short and long-term effects of technical studies prepared, available information and
the best estimate of expenses for implementing the measures related to the geological event in Alagoas, provision changes in the fiscal
year ended on December 31, 2023 and 2022 were:
Schedule of provision
2023 2022
Balance at the beginning of the year 6,627 7,661
Additions (*) 2,307 1,520
Payments (**) (3,826) (2,743)
Realization of present value adjusment 132 188
Balance at the end of the year 5,240 6,627
Current liability 2,759 4,248
Non-current liability 2,481 2,379
Total 5,240 6,627
(*) In 2023, include: a) the additional provision of R$ 980 (R$ 920 net of present value adjustment) of the Instrument of Global Agreement
of R$ 1.7 billion disclosed above, of which approximately R$ 720 were already provisioned. Of this amount, R$700 was disbursed in 2023
and R$1 billion (R$961 net of present value adjustment) is classified as other accounts payable; b) monetary adjustment in total of R$
114 classified as financial expense.
(**) Of this amount, R$2,686 (2022: R$ 2,532) refers to payments made and R$1,140 (2022: R$ 211) was reclassified to other accounts payable. The current provision can be segregated into the following
action fronts: a. Support for relocation and compensation: These actions have a provision of R$ 1,353 2,087 b. Actions for closing and monitoring
the salt cavities, environmental actions and other technical matters Based on preliminary results from the analysis of event in
cavity 18, the indication is that filling with sand will not be necessary for this cavity. To find a definitive solution for the six cavities,
previously expected to be monitored by sonar (monitoring group), the Company decided that they should be filled with sand. Considering the progress made in the last half of 2023 and
the cavity 18 event, the new configuration of the closure plan for the 35 mining areas considers that:
(i) 13 cavities are recommended to be filled with sand. Of
these, filling for 5 has been completed, filling for 2 is in progress. For the 6 cavities recently included in the filling with sand group,
the activities are under planning;
(ii) 6 cavities do not have indication of additional measures,
whereas natural filling was confirmed for 5 cavities and 1 cavity, the cavity 18, has its evaluation in progress, with an indication that
filling with sand will not be required;
(iii) 16 cavities should be buffered, which is a technique that
consists of pressurizing the cavity. Of these, buffering was completed for 9. All Company's actions are based on technical studies prepared
by outsourced specialists, whose recommendations are submitted to competent authorities and respect the periods of time agreed under the
closing plan, which is public and regularly reevaluated jointly with the ANM. After the events in this period, the plan to close mining
areas is under revision. The provisioned amount of R$ 1,583 1,367 Regarding environmental initiatives, in June 2022, in compliance
with the Agreement for Socio-environmental Reparation, Braskem submitted to the MPF the environmental diagnosis containing the assessment
of the potential environmental impacts and damages arising from salt mining activities and the environmental plan with proposals of the
measures required. As established in the agreement, the parties jointly defined the specialized company that will evaluate and monitor
the environmental plan. In December 2022, an additional report on the plan was filed with the MPF. In February 2023, MPF expressed its
agreement with this environmental plan, incorporating the suggestions provided in the additional report. Braskem initiated the actions
foreseen by the plan, implementing the commitments established in the agreement and sharing the results of its actions with the authorities.
Also is agreed that the environmental diagnosis is expected to be updated in December 2025. As one of the developments of the cavity 18 event, although
alteration in lagoon's water quality has not been identified, according to the Agreement for Social-Environmental Reparation, the specialized
company will prepare an amendment to the current environmental diagnosis report. c. Social and urban measures allocating R$1,580 for the adoption of actions and measures in vacated areas, urban mobility and social compensation actions, of which
R$300 going to indemnification for social damages and collective pain and suffering and possible contingencies related to the actions
in the vacated areas and urban mobility actions. On June 30, 2022, the Company filed with MPF the social diagnosis report and the respective
social action plan that will support the definition of measures to be adopted. Until December 31, 2023, 24 actions have already been approved.
The current provision amount is R$1,369 (2022: R$1,567). d. Additional measures: The provisions of the Company are based on current estimates
and assumptions and may be updated in the future due to new facts and circumstances, including, but not limited to: changes in the execution
time, scope and method and the success of action plans; new repercussions or developments arising from the geological event, including
possible revision of the Civil Defense Map; and possible studies that indicate recommendations from specialists, including the Technical
Monitoring Committee, according to Agreement for Compensation of Residents as detailed in Note 24.1 (i), and other new developments in
the matter. The measures related to the mining areas closure plans are
also subject to the analysis and approval by ANM, the monitoring of results of the measures under implementation as well as changes related
to the dynamic nature of geological event. Continuous monitoring is essential for confirming the results
of the current recommendations. Accordingly, the plan to close the mining areas may be updated based on the need to adopt technical alternatives
to stabilize the subsidence phenomena arising from the extraction of salt. In addition, the assessment of the future behavior of cavities
monitored mainly using sonar and piezometers could indicate the need for certain additional measures to stabilize them. The actions to repair, mitigate or offset potential environmental
impacts and damages, as provided for in the Socio-environmental Reparation Agreement, were defined considering the environmental diagnosis
already prepared by a specialized and independent company. After the conclusion of all discussions with authorities and regulatory agencies,
as per the process established in the agreement, an action plan was agreed to be part of the measures for a Plan to Recover Degraded Areas
(“PRAD”). On December 13, 2023, the Senate established a Parliamentary
Inquiry Commission ("CPI") in relation to the geological event in Alagoas. The Company is monitoring the matter. An investigation has been carried out under secrecy by the
Federal Police in Alagoas for around four years. In December 2023, the Federal Police conducted search and seizure of documents under
this investigation, named Salt Tears Operation. In this sense, the Company informs that it is and has always been at the disposal of authorities
and that it has been providing all the information related to salt mining during the investigation. The Company has been making progress with local authorities
about other indemnification requests to understand them better. Although future disbursements may occur as a result of progress in negotiations,
as of the reporting date, the Company is unable to predict the results and timeframe for concluding these negotiations or its possible
scope and the total associated costs in addition to those already provisioned for. It is not possible to anticipate all new claims, related
to damages or other nature, that may be brought by individuals or groups, including public or private entities, that understand they suffered
impacts or damages somehow related to the geological phenomenon and the relocation of people from risk areas, as well as new notices of
infraction or administrative penalties of diverse natures. Braskem continues to face and could still face administrative procedures and
various lawsuits filed by individuals or legal entities not included in the PCF or that disagree with the financial compensation offer
for individual settlement, as well as new collective actions and new lawsuits filed by public utility concessionaires, entities of the
direct or indirect administration of the State, Municipality or Federal level. Therefore, the number of such actions, their nature or
the amounts involved cannot be estimated. Consequently, the Company cannot eliminate the possibility
of future developments related to the geological event in Alagoas, the relocation process and actions in vacated and adjacent areas, so
the expenses to be incurred may differ from its estimates and provisions. In February 2023, the Company signed a settlement agreement
with the insurance companies related to the claim for the geological event in Alagoas. 24.1 Main lawsuits and contingent liabilities
in progress In the context of this event, the following lawsuits were
filed against the Company: (i) Public-Interest
Civil Action (“ACP”) filed by the Alagoas State Prosecution Office and the Alagoas State Public Defender’s Office –
Reparation for Residents In June 2019, the Company was informed of the Public-Interest
Civil Action claiming the payment of indemnification for damages caused to the buildings and the residents of areas affected in the Pinheiro
district and surrounding areas, in the total minimum amount of R$6.7 billion, with initial request for provisional measure to freeze the
Company’s financial and other assets in the same amount. Successive orders to freeze funds resulted in the court blocking of R$3.7
billion in assets in 2019, and the unfreezing occurred in January 2020. Once the case was sent to the Federal Courts, the Federal Prosecution
Office started to participate in the action. The first agreement under this Public-Interest Civil Action
(Reparation for Residents) was ratified on January 3, 2020. The Agreement to Support the Relocation of People in Risk Areas (“Agreement
for Compensation of Residents”), entered into by Braskem and the MPE, the DPE, the MPF and the DPU (“Authorities”),
establishes cooperative actions for relocating people in risk areas and guaranteeing their safety, which provides support under the Financial
Compensation and Support for Relocation Program implemented by Braskem, for the population in specified risk areas. After updates
of the Civil Defense Map, two legal instruments were entered into with the Authorities, in July and October 2020, to include properties
in the PCF. On December 30, 2020, the Company and the Authorities executed
a second amendment to the Agreement for Compensation of Residents to terminate the Public-Interest Civil Action, through which the parties
agreed to include in PCF the relocation of additional properties defined in the updated version of the Civil Defense Map, of December
2020, and in the independent technical and specialized studies engaged by the Company on the potential impact of the geological event
on the surface of the region (“Studies”). The Agreement for Compensation of Residents includes the area currently affected
by the geological event, according to the Civil Defense, and the areas with potential future impacts indicated in the Studies. To implement the actions envisaged in the Public-Interest
Civil Action, the Company undertook to maintain R$2.7 billion in a checking account (R$1.7 billion under the Agreement for Compensation
of Residents and an additional R$1 billion under the second amendment), with minimum working capital of R$100, whose transactions will
be verified by an external audit company. On December 31, 2023, arising from the costs incurred related to the PCF, the balance of this
checking account corresponded to R$115 under current assets (2022: R$175). In addition, the Company and the Authorities agreed to: (i)
create a technical group (Technical Monitoring Committee) to monitor the geological event and study the areas adjacent to the Civil Defense
Map for a period of five years; and (ii) maintain a performance bond in the current amount of R$615 (down from the R$2 billion performance
bond envisaged in the Agreement for Compensation of Residents). With the judicial ratification by the courts of the Agreement
for Compensation of Residents on January 6, 2021, this Public-Interest Civil Action was terminated. (ii) Public-Interest
Civil Action (ACP) filed by the Federal Prosecution Office (MPF), Federal Public Defender’s Office (DPU) and Alagoas State Prosecution
Office (MPE/AL): Reparation for Residents – Map Version 5 On November 30, 2023, the Company was informed of the Public-Interest
Civil Action filed by the MPF, DPU and MPE against the Municipality of Maceió and Braskem, with a request for a injunctive relief
based on evidence, against the Municipality of Maceió: (i) the disclosure of the new Map of Priority Action Lines, Version 5, and
(ii) preparation of the Action Plan to address issues related to the identification of the roads and public equipment located in the region.
Against Braskem, they request through a preliminary injunction: (i) inclusion in the PCF of the new criticality area 00 (area defined
by the Civil Defense of Maceió with recommendation of allocation) of Version 5 of the Civil Defense Map and making feasible the
optional inclusion of all residents affected whose properties are located in the criticality area 01 (area defined by the Civil Defense
of Maceió with recommendation of monitoring) of Version 5 of the Map, with inflation adjustment corresponding to the amounts adopted
by the PCF; (ii) establishment, with the permission of the affected party of the criticality area 01, of a Program for Reparation of Damage
to Properties resulting from the alleged depreciation of the property, as well as the alleged pain and suffering resulting from the inclusion
of the property in the Map; (iii) engagement of independent and specialized firm to identify the alleged damage to properties if the affected
party decides to remain in the area of criticality 01 of Version 5 of the Civil Defense Map; and (iv) engagement of independent and specialized
technical advisory to provide support to the affected parties in the analysis of the scenarios and decision-making of their relocation
or staying in the area. On the merits, they request confirmation of the preliminary injunctions. On November 30, 2023, the judge rendered a decision granting
the injunctive relief based on evidence of the plaintiffs. Against this decision, Braskem proposed suspension of the preliminary injunction
and filed an interlocutory appeal. On January 22, 2024, the decision rendered in the interlocutory appeal determined “the immediate
suspension of the provisory execution determined by the trial court”, decision maintained by the full court until the final and
unappealable judgment of the interlocutory appeal. The amount assigned to the case by the plaintiffs in the
lawsuit is R$ 1 The Management, supported by the opinion of the external
legal advisors, classifies the probability of loss in this case as possible. (iii) Public-Interest
Civil Action filed by the Alagoas State Federal Prosecution Office – Social-environmental reparation In April 2020, the Company was informed of the Public-Interest
Civil Action claiming the payment by the Company of indemnification for socio-environmental damages and other collective damages, as well
as the adoption of corrective and environmental compliance measures, with preliminary injunction requiring the freezing of assets, suspension
of borrowings with the Brazilian Development Bank (“BNDES”), formation of an own private fund in the initial amount of R$ 3.1 20.5 27.6 On December 30, 2020, the Agreement for Socio-environmental
Reparation was executed, with the Company mainly undertaking to: (i) adopt measures to stabilize and monitor the subsidence phenomenon
resulting from salt mining; (ii) repair, mitigate or compensate potential impacts and environmental damages arising from salt mining in
the Municipality of Maceió; and (iii) repair, mitigate or compensate potential impacts and social and urban damages arising from
salt mining in the Municipality of Maceió, as detailed below: (i) To stabilize the cavities and monitor the soil, the Company
continues to implement the action plans involving the closure of mining fronts prepared by Braskem and approved by the ANM, whose measures
can be adjusted until the stability of the subsidence phenomenon resulting from salt mining is verified. (ii) Regarding the potential environmental impacts and damages
resulting from salt mining in the Municipality of Maceió: as agreed with the MPF, the Company hired a specialized independent company
to identify and recommend measures for recovering, mitigating or compensating any environmental impacts identified as the result of salt
mining activities in Maceió. The study and the second opinion report on the environmental planning were delivered to the MPF on
June 30, 2022 and December 7, 2022, respectively, and will follow the procedures as per the agreement for final consolidation of the actions
to be adopted in the mutual agreement between the Company and the MPF, but it is not possible to predict the outcome or if it will result
in additional amounts other than those already recorded in the provision. (iii) Regarding potential impacts and social and urban damages
arising from salt mining in the city of Maceió: to allocate the maximum amount of R$1.3 billion for adopting actions and measures
in vacated areas, urban mobility actions and social compensation actions. For these social compensation actions and measures, on June
30, 2022, the Company filed with the MPF the report and the respective plan of social action that will be used as base to define the measures
to be adopted. Braskem also will allocate the amount of R$300 for indemnification for social and collective pain and suffering and possible
contingencies related to actions in vacated areas and in urban mobility actions. The Company and the Federal Prosecution Office also agreed
to hire a specialized consultancy to evaluate the Company’s Social and Environmental Management Program and on the pledging of security
interest involving certain assets of the Company in the amount of R$2.8 billion to substitute the performance bond of R$1 billion. The Agreement for Socio-environmental Reparation was ratified
by Court on January 6, 2021, with the termination of the Public-Interest Civil Action for Socio-environmental Reparation regarding to
Braskem. Finally, under the Agreement for Socio-environmental Reparation,
on January 21, 2021 the Civil Investigation launched in June 2020 by the MPE was terminated. It aimed to: (i) calculate the extent of
the urban damages caused by the geological event that occurred in Maceió; (ii) seek, from liable parties, necessary and adequate
architectural solutions for the destination, restoration and/or use of the cited empty spaces left in the districts impacted; (iii) calculate, if applicable, potential compensatory
liabilities for the damages caused to the urban order. On July 21, 2023, the 3 rd (iv) Public-Interest
Civil Action filed by the State Public Defender's Office of Alagoas: Request for Additional Collective Moral Damages In March 2024, the Company was informed of the Public-interest
Civil Action filed by DPE against Braskem, seeking, among other requests, to challenge clause 69 of the Agreement for Socio-environmental
Reparation (payment of R$ 150 for collective moral damages) alleging that there were facts subsequent to the date of the agreement that
would give rise to additional damages. DPE sustains that: (i) the waiver set forth in the Agreement
for Socio-environmental Reparation would not cover future damages; (ii) the transfer of the property of the PCF to Braskem would violate
constitutional principles; (iii) the damage caused should be fairly compensated; (iv) collective existential damages should be compensated;
and (v) Braskem should be condemned for illicit profit, yet to be liquidated. Based on such allegations, it requests, as a preliminary
measure: (i) the suspension of clause 58, second paragraph, of the Agreement for Socio-environmental Reparation, in order to rule out
the possibility of reversion of the area to the benefit of Braskem; (ii) the imposition of inalienability to the PCF area until the final
and unappealable decision on the merits of the claim, considering the need for the assets acquired by the Financial Compensation Program
not to be subject to any disposal, nor subject to seizure. On the merits, it requests, among others: (i) the loss of
all properties subject to the PCF, with the possibility of reverting the area to the victims or to public domain, in addition to the conviction
of Braskem to the payment, as collective and social moral damages, to the same amount spent by Braskem for material damages; (ii) the
conviction of Braskem, as existential damages, for the loss of all properties subject to the PCF; (iii) the conviction of Braskem for
illicit profit, with the loss of the PCF properties, in addition to the payment of the amounts the Company obtained due to its alleged
illicit conduct (to be determined in a liquidation proceeding); (iv) subpoena to the Investor Relations Officer, for the purposes of regulatory
obligations, with publication of a relevant fact. The value of the case attributed by the DPE is R$150. Management, supported by the opinion of external legal advisors,
classifies the probability of loss in this case as possible. (v) Public-Interest
Civil Action filed by the Federal Public Defender’s Office (“DPU”): refusal of insurance within the scope of Housing
Financial System (“SFH”) In November 2021, the Company was informed of the Public-Interest
Civil Action filed by DPU to question the denial of necessary insurance for contracts under the SFH to acquire properties located within
a radius of 1 km outside the risk area defined by the version 4 map of Civil Defense authorities, which is the subject matter of the Residents
PCA agreement – see item (i). Insurers linked to SFH, financial agents, the regulatory
agency and Braskem are the defendants. The main claim is only against the insurers, financial agents and the regulatory agency on the
grounds that the refusal to contract the insurance is abusive and has no technical or legal grounds. There is a secondary and eventual
claim to sentence Braskem to pay indemnification in an amount to be settled in the future, if the judge understands that the refusal somehow
has grounds due to the subsidence phenomenon. On January 10, 2024, a decision was rendered partially ordering
the insurance companies to: (i) refrain from applying the safety margin beyond the risk area defined by the Civil Defense and engaging
in unfair pricing and increases to avoid contracting insurance coverage for properties out of and next to the risk area, declaring that
there were no denials/decreases in the insurance coverage based exclusively on the safety margin, (ii) call everyone who is interested
to reassess the request for housing insurance. Braskem was not found guilty, however an appeal against this decision is possible. It is not possible to estimate the indemnification amount,
which will depend on the evidence of damages submitted by people whose insurance was denied. The Management, supported by the opinion of the external
legal advisors, classifies the probability of loss in this case as possible. (vi) Public-Interest
Civil Action filed by the Alagoas State Public Defender’s Office – Review of terms of the Flexal Agreement In March 2023, the Company was informed of the Public-interest
civil action filed by DPE against the Company, the Federal Government, the State of Alagoas and the Municipality of Maceió seeking,
among other claims, the revision of terms of the Flexal Agreement, signed amongst Braskem, the MPF, the MPE, the DPU, and Municipality
of Maceió, ratified on October 26, 2022, by the 3 rd Through this lawsuit, the DPE seeks, among other claims,
the inclusion of residents of Flexais region, who choose to adhere the PCF, program created under the agreement in ACP (Reparation for
Residents), with consequent reallocation of these residents and compensation for moral and material damages in parameters specified in
the ACP. As injunction relief, DPE also requested, that the Municipality
of Maceió and Braskem initiated the registration of all residents who requested to be relocated and their concomitant inclusion
in the PCF, or, alternatively, requested the freeze of Braskem bank accounts in the amount of R$ 1.7 1.9 On January 19, 2024, a decision
was rendered, judging partially valid the requests made by the DPE.
The judge determined the following: (i) deny the request for annulment of the clauses of Flexal
Agreement, stating, however, that the settlement described in the agreement must be interpreted as settlement until the date of execution
of the agreement, and does not cover property damages related to real estates and their depreciation; (ii) deny the request for payment of collective pain and
suffering; (iii) grant the payment for pain and suffering while the
effects of social isolation persist. The judgment validated the parameters of the program provided in the Flexal Agreement, however it
understood that the amounts paid in the program correspond to the period between October 2020 and the date the Flexal Agreement was entered
into, therefore payments must continue until the effective requalification of the Flexais region; (iv) grant the request for indemnity for property damages
resulting from the real estate depreciation to be estimated during the phase of fulfillment of the judgment; (v) determine the development of the case to adjudicate the
request for relocation of residents, among others. The Management, supported by the opinion of the external
legal advisor, classifies the probability of loss in this lawsuit as possible. (vii) Public-Interest
Civil Action filed by the Federation of Fishermen of the State of Alagoas (“FEPEAL”) and National Confederation of Fishermen
and Aquaculturists (“CNPA”): Fishermen Reparation In August 2023, the Company was
informed of the . As a preliminary measure, the Associations requested, among
other claims, that the Company provision sufficient funds to guarantee the compensation of fishermen included in the public-interest civil
action, while publishing a material fact notice to the shareholders, requests that were denied by the Court. Among other requests, the Associations claim the payment
of: (i) compensation for (a) individual and homogeneous moral damages suffered, in the amount of R$ 50 132 100 750 20 . On December 31, 2023, the plaintiffs’
claims amount to R$ 1.9 1.6 R$ 321 (viii) Public-Interest
Civil Action filed by the Federation of Fishermen of the State of Alagoas (“FEPEAL”): Fishermen Financial Assistance On December 13, 2023, the Company became aware of the ACP,
with request for advance relief, filed by FEPEAL, which requested the pa |
