Q3 2025 Braskem SA Earnings Call

Speaker #1: Boa tarde. E obrigada por aguardarem. Sejam bem-vindos à videoconferência da BRASKEM para a discussão dos resultados referentes ao terceiro trimestre de 2025. Estão presentes hoje conosco os senhores Roberto Ramos, CEO da BRASKEM, Felipe Gens, CFO da BRASKEM, e Rosana Avolio, diretora de relações com investidores, planejamento.

Speaker #2: Investor Relations, Strategic Planning, and Corporate Market Intelligence Director.

Speaker #3: Informamos que este evento está

Speaker #3: sendo.

Speaker #2: Please note that this event is being

Speaker #2: recorded. The presentation will be held in Portuguese with simultaneous translation into English. All participants can choose which language to listen to and see the presentation in using the show captions and interpretation buttons, respectively.

Speaker #2: After BRASKEM's remarks, there will be a question and answer session. Please note that questions must be sent through the Q&A button in writing. Now, I will repeat the same instructions in Portuguese translated into English.

Speaker #2: The presentation is being held in Portuguese with simultaneous interpreting into English. All participants can choose what language to see the presentation and listen in using the interpretation button and the tabs on top.

Speaker #2: After BRASKEM's remarks, there will be a Q&A session. Please note that questions must be sent through the Q&A button. The audio for this event will be available on the Investor Relations website after it ends.

Speaker #2: We remind you that participants will be able to submit questions for BRASKEM, which will be answered after the end of the conference by the IR department.

Speaker #2: Before we proceed, please note that any statements that may be made during this conference call regarding BRASKEM's business prospects, projections, operational and financial goals, constitute beliefs and assumptions of the company's management.

Speaker #2: As well as information currently available to BRASKEM. Future considerations are not a guarantee of performance and involve risks, uncertainties, and assumptions. As they refer to future events, and therefore depend on circumstances that may or may not occur.

Speaker #2: Investors and analysts should understand that general conditions, industry conditions, and other operational factors may affect BRASKEM's future results. And may lead to results that differ materially from those expressed in such future conditions.

Speaker #2: Now, I'll turn the conference over to Ms. Rosana Avolio, investor relations, strategic planning, and corporate market intelligence director. Ms. Avolio, you may begin your presentation.

Speaker #4: Bom dia a todas e a todos.

Speaker #5: Good morning, everyone. Thank you for participating in BRASKEM's earnings conference call for the third quarter of 2025. As indicated in the agenda described on slide three, I will begin the presentation with the company's main highlights in the period, starting on slide four.

Speaker #5: In the third quarter of 2025, the industry's performance continued to be impacted by the prolonged downward cycle. Utilization rate at petrochemical plants in Brazil was lower than in the second quarter, due to the scheduled maintenance stoppage at the Rio de Janeiro plant and the continued implementation of this strategy to optimize production at NAFTA-based plants, which takes into account demand levels and spreads on the international market.

Speaker #5: In the United States and Europe, the increase is mainly due to the normalization of operations and the rebooting of stocks in the United States.

Speaker #5: While production levels in Mexico remained lower given the first general maintenance stoppage, since the start of production which was completed at the end of July 2025.

Speaker #5: With regard to safety and non-negotiable value, BRASKEM recorded an average accident frequency rate of 0.75 events per million hours worked, down on the previous quarter and well below the.

Rosana Avolio: Red growth, de-accelerate inflation, high interest rates, strong geopolitical and trade tensions. Considering the still volatile scenario, we have seen a significant impact in the regions where we operate, resulting in lower industrial activity in resin processing, a typical downturn in demand for the period, reflecting the challenges faced by the industry on a global scale, especially in Brazil and Europe. In addition, most international petrochemical spreads fell in the period, remaining at historically low levels due to excess installed capacity, which, together with weakened demand, continue to put negative pressure on the sector's profitability at the global level. Moving on to the next slide. The performance of each of the company's segment will presented below, starting with Brazil on slide number 7.

Rosana Avolio: In Brazil, the utilization rate at the petrochemical plants was lower due to the scheduled shutdown of the Rio de Janeiro petrochemical plant and the strategy of optimizing production at naphtha-based plants in face of demand levels. Resin sales in the Brazilian market were lower, mainly due to the higher volume of polyethylene imports and lower demand for polypropylene. This reduction was offset by higher sales of key chemicals. In the quarter, recurring EBITDA was $205 million, 35% higher than in the previous quarter. This increase is explained by the prioritization of sales with higher added value, the implementation of the commercial strategy to supply the Brazilian market, and the initiatives of the resilience program. Let's move on to the next slide, please.

Resin sales in the Brazilian market were lower mainly due to the higher volume of polyethylene imports and lower demand for polypropylene.

This reduction was offset by higher sales of key chemicals.

In the quarter recurring EBITDA was $205 million, 35% higher than in the previous quarter. This increase is explained by the prioritization of sales with higher added value the implementation of the commercial strategy to supply the Brazilian market and.

Initiatives of the resilience program, let's move on to the next slide please.

Rosana Avolio: In Q3 2025, the utilization rate of green ethylene plant was 40%, 31 percentage points lower than the previous quarter, impacted by the continued implementation of measures to optimize stock levels, which is part of the resilience program. Sales were lower compared to Q2 due to lower demand from Asian markets. In relation to the strategy of accelerating the production of new bioproducts and with the aim of seeking opportunities to create value, Braskem Green S.A. was created at the end of 2023, a company that already owns the green ethylene assets in Rio Grande do Sul and which will concentrate the growth of Braskem's green portfolio. Next slide, please. The utilization rate in United States and Europe segment was higher due to the normalization of operations and the rebuilding of inventories in the United States.

In the third quarter 'twenty 'twenty five the utilization rate of Green ethylene plant was 40% 31 percentage points lower than the previous quarter impacted by the continued implementation of measures to optimize that.

Stock levels, which is part of the resilience program sales were lower compared to the second quarter due to lower demand from Asian markets.

In relation to the strategy of accelerating the production of new buy a product and with the aim of seeking opportunities to create value breast Kim Greene co was created at the end of 2023 accompany that already owns the green ethylene assets in Rio Grande do soup and which way.

Concentrate the growth of breast cancer Green portfolio next slide please.

The utilization rate in the United States and Europe segment was higher due to the normalization of operations and the rebuilding of inventories in the United States, the lower sales volume compared to the previous quarter is mainly explained by the lower industrial activity in Europe, and the weekend demand in the United State.

Rosana Avolio: The lower sales volume compared to the previous quarter is mainly explained by the lower industrial activity in Europe and the weakened demand in the United States. The segment's results continue at negative levels impacted by weakened demand in the regions, pressured spreads, and higher ship expenses. These effects were partially offset by the lower inventory effect of feedstock acquired in previous periods in the United States. Moving on to the next slide, we will talk about the Mexico segment's performance in the quarter. The utilization rate for the quarter was 47%, still impacted by the first general maintenance stoppage since the plant startup, which was concluded on 31 July. With regard to ethane supply, the lower volume of ethane supplied by Pemex compared to the previous quarter was offset by the increase in the volume imported through Fast Track and the start of supply from the ethane import terminal.

The segment's results cause continue that negative levels impacted by weekend demand in the regions pressured spreads and higher shipping expenses.

Its effects were partially offset by the lower inventory effect of feedstock acquired in previous periods in the United States.

Moving onto the next slide we will talk about the Mexico segment's performance in the quarter.

The utilization rate for the quarter was 47% still impacted by the first general maintenance stoppage faced of plant startup, which was concluded on July 31st.

With regard to ethane supply the lower volume of ethane supplied by Pemex compared to the previous quarter was offset by the increase in the volume imported through fast track and the start of supply from the ethane import terminal in this scenario the volume of polyethylene sales.

Rosana Avolio: In this scenario, the volume of polyethylene sales was lower than in Q2. Recurring EBITDA of the segment for the period was -$37 million, also impacted by the higher idle expenses in the quarter due to scheduled stoppages and lower provisions for fine receivable for delays in the construction of Terminal Química Puerto México compared to Q2 2025. Now, let's move on to the next slide. The general maintenance stoppage at Braskem Idesa petrochemical plant was completed at the end of July with the participation of more than 3,000 people. This was the first scheduled maintenance stoppage at the petrochemical complex in Mexico since its inauguration in 2016.

It was lower than in the second quarter.

Recurring EBITDA of the segment for the period was negative by 37 million also impacted by the higher idle expenses in the quarter due to scheduled stoppages.

And lower provisions for find receivable for delays in the construction of the terminal of ethane imports compared to the second quarter of 2025.

Now, let's move on to the next slide.

The general maintenance stoppage at the brass Kenzie Desert petrochemical plant was completed at the end of July with the participation of more than 3000 people.

As was the furthest scheduled maintenance stoppage at the petrochemical complex in Mexico since its inauguration in 2016.

In addition, the start of ethane supplies from paid me now key makeup with the Mexico in September 2025 marks the beginning of a new chapter in the history of Braskem. It is with the reduction of the need to use.

Rosana Avolio: The start of ethane supplies from Terminal Química Puerto México in September 2025 marks the beginning of a new chapter in the history of Braskem Idesa, with the reduction of the need to use Fast Track's solution and guaranteeing the possibility of access to 100% of Braskem Idesa's feedstock at lower logistics cost. This ethane will be transported using two ethane transport vessels leased by Braskem Trading & Shipping, which are dedicated to this operation. TQPM is connected to the petrochemical complex in Mexico via pipelines, guaranteeing greater reliability to the operation when compared to the Fast Track solution. It's worth noting that in September, TQPM supply of ethane to Braskem Idesa amounted to approximately 11,000 barrels per day. Next slide, please. In the next chapter, we will discuss the company's consolidated results.

That's correct solution and guaranteeing the possibility of access to 100% of Bresca me Theres as feedstock at lower logistics cost.

This is dana will be transported using two ethane transport vessels leased by Baskin trading and shipping which are dedicated to this operation.

<unk> P. M is connected to the petrochemical complex in Mexico via pipelines guaranteeing greater reliability to the operation if I compare to the fast track solution.

It's worth noting that September in September.

TP two <unk> P. M supply of ethane are two black Kimmy days amounted to approximately 11000 barrels per day next slide. Please in the next chapter we will discuss the company's consolidated results.

Rosana Avolio: Consolidated recurring EBITDA in Q3 was $150 million. The increase in relation to the previous quarter is mainly explained by the prioritization of higher, say, value-added sales, prioritization of supply to the Brazilian market, positively impacting the contribution margin, lower inventory effects in the United States, and the implementation of the resilience plan initiatives, with emphasis on reducing fixed costs in general. These effects were partially offset by higher idle expenses due to scheduled stoppages in Brazil and Mexico, and by the appreciation of the real against the dollar. Moving on to the next slide. By the end of September 2025, all work fronts in Maceió were progressing according to plan. The relocation and compensation front continued to show progress in its indicator and ended Q3 with 99.9% execution of the residence relocation program.

Consolidated recurring EBITDA in the third quarter was $150 million.

The increase in relation to the previous quarter is mainly explained by the prioritization of hires a value added sales prioritization of supply to the Brazilian market positively impacting the contribution margin lower inventory effect in the United States and the implementation of the.

The resilience plan initiatives with emphasis on reducing fixed costs in general.

Is it factor were partially offset by higher idle expenses due to scheduled stoppages in Brazil, and Mexico and by the appreciation of the real against the dollar.

Moving on to the next slide.

By the end of September 2025, all work fronts in Marseille, we're progressing according to plan the relocation and compensation front continue to show progress in its indicator and ended the quarter with 99 point or 9%.

Execution of the residents relocation program the same percentage applies to the number of proposals submitted for the financial compensation and relocation support program.

Rosana Avolio: The same percentage applies to the number of proposals submitted for the financial compensation and relocation support program, of which around 99.6% were accepted and 99.5% were paid out. At the same time, the closure and monitoring of the salt cavities is being implemented. After all the actions have been taken, if necessary, to ensure that the 35 cavities reach a maintenance-free state in the long term. This quarter, we highlight the achievement of the technical filling limit of cavity 16. As a result, 6 cavities have now been naturally filled, 6 cavities have been completed, 3 have reached the technical filling limit, and 7 cavities are being filled.

Of which around a 99, 6% were accepted and 90% to 95% were paid out at.

At the same time, the closure and monitoring of the salt cavities is being implemented.

After all the actions have been taken.

If necessary to ensure that the thirty-five cavities reach a maintenance free state in the long term.

This quarter, we highlight the achievement of the technical filling limit of cavity 16.

As a result, six cavities have now being naturally filled six cavities have been completed three.

Richard the technical filling limit and seven cavities are being filled. Additionally.

Rosana Avolio: Additionally, as announced by the company through a material fact, Braskem and the state of Alagoas signed an agreement related to the Alagoas geological event, providing for a total payment of BRL 1.2 billion, of which around BRL 139 million had already been paid. The outstanding balance is to be paid in 10 variable and adjusted annual installments, mainly after 2030, taking into account the company's payment capacity. The state agreement establishes compensation, indemnification, and/or reimbursement to the state of Alagoas for full reparation of any and all state property and of patrimonial damages, and grants the company full discharge for any damages arising from and/or related to the geological event in Alagoas, including the extinction of the Alagoas state suit in action.

Additionally, as announced by the company through a material effect.

Skin and the state of Alagoas.

<unk> an agreement related to the Alagoas geological event, providing for a total payment of one 1.1 point 2 billion reals of which around 139 million has already been paid.

The outside.

And the balance is to be paid in 10 variable and adjusted annual installment mainly after 2030, taking into account the company's payment capacity.

The state agreement establishes conversation indemnification and our reimbursement to the state of Alagoas for full operation of any and all state property and off but two mono damages and granted the company full discharge for any damages arising from at all.

Later to the geological event in Alagoas, including the extinction of the Alagoas State suite connection the signing of this agreement represents a significant and important step forward for the company in relation to the impact resulting from the geological event in Alagoas.

Rosana Avolio: The signing of this agreement represents a significant and important step forward for the company in relation to the impact resulting from the geological event in Alagoas. Therefore, in relation to the final provision, the total provision related to Alagoas event was around BRL 18.1 billion, of which around BRL 13.6 billion have already been disbursed, and approximately BRL 1.5 billion have been reclassified to other obligations payable, including those related to the agreement signed with the state of Alagoas, as mentioned above. As a result, the total provisioned balance at the end of Q3 2025 was BRL 3.8 billion. Let's move on to the next slide. In Q3 2025, the implementation of resilience measures, especially the optimization of inventory levels, was important in partially mitigating the consumption of working capital.

Therefore in relation to the final provision the total provision related to Alagoas event was around $18 1 billion Reals.

Wage around 13.6 billion Reals have a red wing disbursed and approximately one 5 billion reals have been.

Reclassified to other obligations payable, including those related to the agreement signed with the state of Alagoas as mentioned above.

As a result, the total provision balance at the end of the third quarter of 2025 was 3.8 billion Reals now, let's move on to the next slide.

In the third quarter of 2025, the implementation of resilience measures, especially the optimization of inventory levels, what's important in partially mitigating the consumption of working capital. The company had an operating cash consumption of 334 million reals impacted mainly by the.

Rosana Avolio: The company had an operating cash consumption of BRL 334 million, impacted mainly by the higher seasonal disbursement of operating investments, including the scheduled stoppage at the Rio de Janeiro petrochemical plant and in Mexico. Recurring cash consumption was mainly impacted by higher half-yearly interest payments on debt securities issued on the international market by the company, which are concentrated in the Q1 and Q3 of the year. The sales of Senpodes, part of the resilience plan, and the receipt of the last installment of the sale of Cetrel reduced this consumption by BRL 211 million. Finally, considering the disbursements in Alagoas, the company had a cash consumption of approximately BRL 2.2 billion. Let's move on to the next slide.

Higher seasonal disbursement of operating investments, including those scheduled stoppage at the Rio de Janeiro petrochemical plant.

Andy Mexico recurring cash consumption was mainly impacted by higher half yearly interest payments on debt securities issued on the international market by the company, which are concentrated in the first and third quarters of the year.

The sales of quotas part of the resilience plan and the receipt of the last installment of the sales I'll say, what I said thrilled reduces consumption by 211 materials finally, considering the disbursements in Alagoas the company had a cash consumption of approximately 2.2.

Billion barrels now.

Let's move onto the next slide.

Brascan ended the third quarter of the year with an elongated that profile with 67% of it that's concentrated after 2030.

Rosana Avolio: Braskem ended Q3 of the year with an elongated debt profile, with 69% of its debts concentrated after 2030. In order to strengthen its liquidity position in the face of the industry prolonged downturn, the company drew down its standby line in the amount of BRL 1 billion at the beginning of October. The current line matures in December 2026. The available cash of $1.3 billion is enough to cover the debt's principal repayments over the next 27 months. Finally, corporate leverage stood at approximately 14.7x at the end of Q3 2025, mainly due to the lower EBITDA over the last 12 months. Moving on with our agenda on slide 11. This concludes the review of the results for Q3 2025. Next, I will comment on the company's resilience and transformation program.

Are there to strengthen its liquidity position in the face of the industry prolonged downturn the company drew down it's by standby line in the amount of $1 billion at the beginning of October occur into line matures in December 2026, the available cash of $1 $3 billion is enough to cover.

That that's principal repayments over the next 27 months find.

Finally corporate leverage.

At approximately $14 seven times at the end of the third quarter of 2025, mainly due to the lower EBITDA over the last 12 months.

Moving on with our agenda on slide 11.

This concludes the overview of the results for the third quarter of 2025.

And next I will comment on the company's resilience and transformation program.

Braskem continues to focus on implementing the initiatives set out in its global resilience and transformation program, considering the significant impacts resulting from the prolonged downturn of the entire industry and the Brazilian chemical sector to this end the company has adopted measures aimed at.

Rosana Avolio: Braskem continues to focus on implementing the initiatives set out in its global resilience and transformation program, considering the significant impact resulting from the prolonged downturn of the entire industry and the Brazilian chemical sector. To this end, the company has adopted measures aimed at generating sustainable value, with an emphasis on maximizing EBITDA and mitigating cash consumption. Braskem's resilience program is aimed at implementing tactical initiatives in the company's operations and processes and is structured around two pillars: initiatives with an impact on EBITDA and short-term cash generation and actions to defend the competitiveness of the Brazilian chemical industry. With a focus on building a more competitive Braskem, resilient and sustainable, the transformation program brings together initiatives that support the perpetuity of the business and is structured around three pillars: optimization of naphtha base, increasing and flexibility of the gas base, and finally, migrating to products with renewable sources.

Generating sustainable value with an emphasis on maximizing EBITDA and mitigating cash consumption.

Breast cancer resilience program is aimed at implementing tactical initiatives in the company's operations and processes and is structured around three pillars.

Initiatives with an impact on avatar and short term cash generation and actions to defend the competitiveness of the Brazilian chemical industry.

With a focus on building a more competitive brascan resilient and sustainable.

The transformation program brings together initiatives that support the perpetuity of the business and is structured around three pillars optimization of naphtha base, increasing and flexibility of the gas base and finally migrating to a product with renewable sources now let's move on to the next slide.

Rosana Avolio: Now let's move on to the next slide. Following on from what was presented on the previous slide, the implementation of the global resilience program fronts have been intensified, considering the prolonged downturn in the industry. So far, we have established 79 action plans globally, which have been broken down into more than 700 initiatives. These actions are distributed on fronts presented above: institutional agenda, commercial agenda, monetization of assets, negotiation with suppliers, optimization of capital employed, and operational optimization. In 2025, the potential for capturing these actions is around $400 million in EBITDA and about $500 million in cash generation in relation to the business plan budget for the year 2025.

Following on from what was presented on the previous slide the implementation of the global resilience programme fronts have been intensified since either.

Considering the prolonged downturn in the industry. So far we have established 79 action plans globally, which have been broken down into more than 700 initiatives. This actions are distributed on France, France presented above our institutional agenda commercial agenda monetization of assets.

Negotiation with suppliers optimization of capital employed and operational optimization in 'twenty to 'twenty five the potential for capturing those actions is around $400 million in EBITDA and about $500 million in cash generation in relation to the business plan.

Budget for the year 2025.

Rosana Avolio: Regarding the progress of the implementation of the actions, around one-third of the initiatives have already been implemented, and other are in execution or partially implemented, demonstrating the progress of the program. This program is an essential pillar to get through the challenging scenario of the global industry. Moving on to the next slide. Continuing what we saw in the previous slide, resilience initiatives have made progress that is fundamental to mitigating the impacts of the prolonged downturn in the industry. On the regulatory side, we have made significant progress in strengthening the Brazilian chemical industry ensuring fair competitiveness. Among them, the approval of the provisional application of the antidumping duty for the PE imported from the US and Canada, mitigating the existing damage in the Brazilian market, and the maintenance of the 20% import rate in Brazil for PE, PP, and PVC resins.

Regarding the progress of the implementation of the actions around one third of the initiatives have already implemented and others are at execution or partially implemented demonstrating the progress of the program.

This program is an essential pillar to get through the challenging scenario of the global industry.

Onto the next slide.

Continuing what we saw in the previous slides resilience initiatives have made program that is fundamental to mitigating the impacts of the prolonged downturn in the industry on the regulatory side, we have made significant progress.

In strengthening the Brazilian chemical industry, ensuring fair competitiveness among them the approval of the provisional application of the antidumping duty for the be imported from the U S and Canada mitigating the existing damage in the Brazilian market and the maintenance of the 20% to import rate in Brazil for the.

E.

BP.

And PVC resin.

Rosana Avolio: In addition, the approval of Bill 892/2025 by the Chamber of Deputies represent a significant step forward for the Brazilian chemical industry, which has been operating at the highest idle rate in the last 30 years. This bill has the purpose of extending the REIQ, the Special Regime for the Chemical Industry, in November and December 2025. In addition to instituting the PRESIQ, which is the Special Sustainability Program for the Chemical Industry from 2027 to 2031. The text of the bill is currently being processed in the Federal Senate for approval and subsequent presidential sanction. Braskem, together with Abiquim and other companies in the sector, reinforces the importance of approving the Bill 892.

In addition, the approval of Bill 892 of 2025 by the Chamber of Deputies represent a significant step forward for the Brazilian chemical industry, which has been operating at the highest rate in the last 30 years.

This bill has the purpose of extending the break the special regimen for chemical industry and November and December 2025. In addition to instituting the prism, which is the special program for the sustainability of the chemical industry from 2027 to 2031 the text of the.

Bill is currently being processed and the Senate for approval and subsequent presidential sanction Brascan together with Abbvie key and other companies in the sector reinforces the importance of proving the bill 892.

I became stacking those studies indicate that this bill could generate an estimated positive impact of 112 billion real on the Brazilian GDP by 2029 crore.

Rosana Avolio: Abiquim's technical studies indicate that this bill could generate an estimated positive impact of BRL 112 billion on the Brazilian GDP by 2029, create up to 1.7 million direct and indirect jobs, recover up to BRL 65 billion in tax revenues, as well as increasing the use of the sector's installed capacity, which currently operates at the lowest level in the industry. In addition, a series of initiatives with an impact on EBITDA were implemented, such as commercial optimizations, reductions of logistics costs, energy, supplies, input, raw materials, optimization of inventory levels, as we commented on throughout the performance of the segments, monetization of tax credits, among others.

Right up to 1.7 million direct and indirect jobs recover up to 65 billion reals in tax revenues as well as increasing the use of this sector's installed capacity wage currently operates at the lowest level in the industry.

In addition, a series of initiatives with an impact EBITDA were implemented such as commercial optimization reductions of logistics costs of energy supplies input raw materials optimization of inventory levels. As we commented on throughout the performance of the segment, but the monetization of tax credits among us.

Others.

Rosana Avolio: These combined initiatives generated positive impacts of around $240 million in EBITDA and approximately $330 million in cash in the year to date compared to the budget of the company's business plan for 2025. These results reinforce the importance of the resilience program in the current industry scenario. Now let's move on to the next slide. With regard to the transformation program, the company also made progress on initiatives to increase the competitiveness of its operations in the medium and long term, with the aim of ensuring the perpetuity of our business. Starting with Transform Alagoas, we highlight the beginning of actions to increase the competitiveness of the company's PVC operations and make them more sustainable. The chlor-soda plant in Alagoas will be transformed into a unit dedicated to handling volumes of EDC, the raw material for the production of PVC.

These combined initiatives generated positive impact of around $240 million in EBITDA and approximately $230 million in cash in the year to date compared to the budget of the company's business plans for 2025.

These results reinforce the importance of their resilience program and the current industry scenario now let's move on to the next slide.

With regard to the transformation program. The company also made progress on initiatives to increase the competitiveness of its operations in the medium and long term.

With the aim of ensuring the perpetuity of our business.

Starting with transform Alagoas, we highlight at the beginning of actions to increase the competitiveness of the Companys previously operations and make them more sustainable.

The Chlor showed a plant in alagoas will be transformed into a unit dedicated to handling volumes of E. D. C. The raw material for the production of PVC in this context the floors of the plateau was hibernate it in September 2025.

Rosana Avolio: In this context, the chlor-soda plant was hibernated in September 2025. The company thus started a new PVC operating model and will now import all its EDC needs through a long-term contract signed with an international supplier. Braskem, which has been present in Alagoas for 48 years, reaffirms its commitment to the socioeconomic development of the state, boosting the strengthening of the chemical and plastic chain. With regard to Transform Sul initiative, the study into importing L-LPG for use as feedstock has been completed. It's worth noting that the Rio Grande do Sul Petrochemical plant is the most competitive naphtha-based plant in South America and the best positioned on the global ethylene cash cost curve.

The company's those started a new PVC operating model and we will now imports all its EDC needs through a long term contract signed with an international supplier breath.

Brascan, which has been present in our language for 48 years reaffirms its commitment to the social economic development of the states boosting the strengthening of the chemical and plastics chain.

With regard to transform us Sue initiative the study into importing L. L. P. G for use as feedstock has been completed it's worth noting that the yogurt into the soup at a chemical plant is the most competitive naphtha base plant in South America, and the best positioned on the global ethylene cash.

Cost curve. This study was carried out with the aim of taking advantage of the plant's existing Gaspar the processing flexibility combined with greater logistical efficiency by importing LPG from Argentina, taking advantage of our.

Rosana Avolio: This study was carried out with the aim of taking advantage of the plant's existing gas processing flexibility, combined with greater logistical efficiency by importing LPG from Argentina, taking advantage of Vaca Muerta production. This initiative brings potential incremental profitability of about $110 per ton compared to the using naphtha as a feedstock. These actions demonstrate how the company has sought to modify its operations to ensure efficiency, flexibility, and long-term sustainability. Now let's move on to the next slide. Concluding this chapter, we come to the biggest transformation initiative underway, Transforma Rio. The expansion of the Rio de Janeiro plant's capacity was approved by the board of directors in October 2025.

If I can work the production this initiative brings potential incremental profitability of about $110 per ton compared to the using a naphtha as a feedstock.

Actions demonstrate how the company has sort of the modified operations to ensure efficiency flexibility and long term sustainability.

Now, let's move onto the next slide.

Okay.

Concluding this chapter we come to the biggest transformation initiative underway transformer Rio the expansion of the Rio de Janeiro plant capacity was approved by the board of Directors in October 2025. This project will add 220.

Rosana Avolio: This project will add 220,000 tons per year of ethylene capacity with an equivalent expansion of PE, increasing the share of gas in Braskem's feedstock profile. The estimated investment of BRL 4.2 billion, with completion estimated for the end of 2028. The implementation of the project is conditional on obtaining funding. In addition to the resources already approved under the REIQ investments benefit for 2025 and 2026, and a long-term supply contract with Petrobras. In addition to increasing the competitiveness of Brazil's most efficient petrochemical plant, this expansion will bring greater competitiveness to the Brazilian polyethylene market, which is in deficit, and positive socioeconomic impact, such as revenue generation for the state and the creation of more than 7,500 jobs during the project execution.

1000 tonnes per year.

Ethylene capacity with an equivalent expression of B E increasing the share of gas in breast cancer feedstock profile. The estimated investment of $4 2 billion Reals with completion estimated for the end of 'twenty or 'twenty eight.

The implementation of the project is conditional on obtaining funding. In addition to the resources already approved under the rake investments benefits for 'twenty, 'twenty, five and 'twenty 'twenty 'twenty six and a long term supply contract with Petrobras in addition to increasing the compare.

<unk> Brazil's most efficient petrochemical plant this expansion will bring greater competitiveness to the Brazilian polyethylene market.

Which is in deficit and the positive social economic impact such as revenue generation for the states and the creation of more than 7500 jobs. During the project execution with this we conclude the chapter by reinforcing that the resilience and transformation program is essential for <unk>.

Rosana Avolio: With this, we conclude the chapter by reinforcing that the resilience and transformation program is essential for getting through the industry's challenging cycle, guaranteeing competitiveness and sustainability. On to the next slide. I will now comment on the company's strategic direction for the next five years cycle and the outlook for the petrochemical scenario. Let's move on to the next slide. Every year, the company draws up its business plan with a five-year horizon through a regular process with a structured timetable and the involvement of various areas of the company. Discussions related to the strategic direction typically take place during the H2 of the year, where we revisit our vision for the next five years, taking into account changes in the global scenario, trends, and fundamentals in the energy and petrochemical industry.

Getting through the industry's challenging cycle guaranteeing competitiveness and sustainability.

Onto the next slide I will.

I'll comment on the company's strategic direction for the next five year cycle and the outlook for the petrochemical scenario now let's move onto the next slide.

Every year the company throws up its business plan with a five year horizon through a regular process with a stricter timetable and the involvement of various areas of the company.

Discuss shows related to the strategic direction.

Typically take place during the second half of the year, where we revisit our vision for the next five years.

<unk> into account changes in the global scenario trends and fundamentals in the energy and petrochemical industry.

Rosana Avolio: For this cycle, between May and July, we kick off by drawing up future scenarios for the petrochemical industry. In August and September, after a detailed discussion, the macroeconomic and petrochemical scenarios were validated with the leadership. In October, we refined the market operational financial projections based on these validations, and in December, we will consolidate the strategic direction for approval by the board of directors. Let's move on to the next slide. When we look at the global scenario in 2025, what stands out most is the high level of uncertainty and volatility. This movement has been driven by trade tensions between the United States and China, which have escalated throughout the year.

For the cycle between May and July we kick off by drawing up future scenarios for the petrochemical industry in August and September after a detailed discussion the macroeconomic and petrochemicals scenarios were validated with our leadership in October we refined the market operation.

No financial projections based on these validation and in December we were consolidated their strategic direction for approval by the board of directors now, let's move onto the next slide.

When we look at the global scenario in 2025, what stands out most is the high level of uncertainty.

T and volatility this movement has been driven by trade.

Trade tensions between the United States, and China, which have escalated throughout the year. This sanctions are accompanied by a series of factors that are likely to continue over the next years, such as more fragmented global Danes increasingly protectionist industrial policies and changes in investment flows which.

Rosana Avolio: These tensions are accompanied by a series of factors that are likely to continue over the next years, such as more fragmented global chains, increasingly protectionist industrial policies, and changes in investment flows, which directly affect international competitiveness. Even with interest rate cuts, the risk of global economic slowdown is still present. When we look at the GDP projections, the consensus is for growth similar to the start of the decade, but limited by the uncertainties of the trade war. This means that we are facing a scenario in which globalization is weakening and protectionism is advancing. The main impacts of this scenario are uncertainty about the stability of the global economic growth and the profound transformations in the dynamics of international trade, with additional risks of disruption in global supply chains.

Directly affect international competitiveness.

Even with interest rate cuts the risk of global economic slowdown.

And when we look at the GDP projections. The consensus is for growth similar to the start of the decade, but limited by the uncertainties of the trade War. This means that we are facing a scenario in which a globalization is weakening and protection is is advancing the main impacts of this.

Scenario, our uncertainty about the stability of the global economic growth and the profound transformations in the dynamics of International trade. With addition of risks of disruption in global supply chains.

Rosana Avolio: This is the macroeconomic backdrop that we are taking into consideration in our strategic discussions for the 2026 to 2030 cycle. Moving on to the next slide. The current scenario combines two factors that put pressure on the petrochemical industry, which are lower oil prices and subdued global demand. This configuration tends to reduce resin prices on the international market as the marginal producer's cost falls, and there's not enough demand to sustain the price of resin on the international market. Even with relatively stable spreads for the marginal producer-based naphtha, lower oil prices and consequently naphtha and resins on the international market could be unfavorable for base gas producers, as in the case of Mexico, depending on the magnitude of the drop in the naphtha prices if gas prices remain stable.

This is the macroeconomic backdrop that we are taking into consideration in our strategic discussions for the 26 to 2030 cycle.

Moving onto the next slide.

The current scenario combines two factors that put pressure on the petrochemical industry, which which are lower oil prices and subdued global demand. This configuration tends to reduce our resin prices on the international market as the marginal producers cost falls and theres not enough demand to.

Sustain the price of resin on the international market, even with relatively stable spreads for the marginal producer.

Base, NAFTA lower oil prices and consequently NAV.

NAFTA and resins on the international market could be unfavorable for our base gas producers as in the Gulf of Mexico, depending on the magnitude of the drop in the naphtha prices if gas prices remain stable.

Rosana Avolio: In 2025, the price of oil on the international market was intensified by the trade war between the United States and China, which brought uncertainties and reduced expectations of growth and global energy consumption. In addition, there was a significant increase in oil production, especially by OPEC+, which gradually resumed its supply, contributing to adjustments in global supply and putting pressure on resin prices benchmarks. In this scenario, realized oil prices this year were lower than expected when compared to the assumption made in the company's 2025/2029 business plan, as well as most of the market. This difference has resulted in a challenging environment for the petrochemical industry, which with direct impact on competitiveness and profitability. Now let's move on to the next slide.

In 'twenty or 'twenty five the price of oil on the international market was intensified by the trade war between the United States, and China, which brought uncertainties and reduced expectations of growth and global energy consumption. In addition, there was a significant increase in oil production, especially.

Actually by OPEC, OPEC, plus which gradually resumed at supply contributing to adjustments in global supply pressure.

Pressure on raising prices benchmarks in this scenario realized oil prices. This year were lower than expected when compare to the assumption made in the company's 2025 2029 business plan as well.

Most of the market. This difference has resulted in a challenging environment for the petrochemical industry, which there with direct impact on competitiveness and profitability.

Now, let's move onto the next slide.

And the company's internal discussions supported by external consultants. It was concluded that dynamics of the petrochemical industry will remain structurally challenging until at least 2030 with China, leading investments to achieve self sufficiency. These investments combined with combined with a.

Rosana Avolio: In the company's internal discussions, supported by external consultants, it was concluded the dynamics of the petrochemical industry will remain structurally challenging until at least 2030, with China leading investments to achieve self-sufficiency. These investments, combined with a growth in demand impacted by the macroeconomic uncertainties, as mentioned above, contributed to the continued imbalance between supply and demand, putting pressure on overall operating rates, which should remain at historically low levels, even with moderate growth in demand. Given the current expectations about the rationalization scenario, it is expected that the sector will begin to recover towards the end of the decade. Now let's move on to the next slide. Finally, when we look at the outlook for the petrochemical spread until 2030, the scenario is structurally challenging, considering global trends and industry dynamics.

Growth in demand impacted by the macroeconomic uncertainties as mentioned above contributed to the continued imbalance between supply and demand.

Putting pressure on overall operating rates, which should remain at historically low levels, even with moderate growth in demand.

Yeah.

Given the current expectations about their rationalization scenario, it's expected that the sector will begin to recover towards the end of the decade now let's move on to the next slide.

Finally, when we look at the outlook for the petrochemical spreads into 'twenty third if the scenario is struck to structurally challenging considering global trends and industry dynamics.

Rosana Avolio: The prolonged downward cycle is expected to last until the end of the decade, with a modest recovery after 2029. This behavior reflects the structural excess of supply, combined with moderate growth in demand, which has kept international spreads below the historical average for a prolonged period. This reality reinforces the importance of the initiatives we presented in previous chapters aimed at resilience and transformation, as well as the need for increasingly assertive commercial and operational strategies. With this, we end this chapter by emphasizing that in the face of a challenging global environment and pressured margins, Braskem's strategic advances will be essential to ensure competitiveness, sustainability, and value generation. I would now like to close the presentation by reinforcing the company's priorities for 2025. On the next slide. We will continue to make progress with the initiatives to transform our assets.

The prolonged down cycle.

Cycle is expected to lessen till the end of the decade with a master does recovery. After 2029. This behavior reflects the structural excessive supply compliant combined with moderate growth in demand, which has kept the international spreads are below the historical average for a prolonged period.

This reality reinforces the importance of the initiatives were presented in previous chapters aimed at resilience and transformation as well as the need for increasingly assertive commercial and operational strategies with this we end this chapter by emphasizing that in the face of a challenging global environment and pressure.

<unk> margins.

Breast skin strategic advances will be essential to ensure competitiveness sustainability and value generation.

I would now like to close the presentation by reinforcing the company's priorities for 2025 on the next slide we will continue to make progress with our initiative Davis to transform our assets. This front of the resilience and transformation plan is strategic if we are to continuously increase the competitiveness.

Rosana Avolio: This front of the resilience and transformation plan is strategic if we are to continuously increase the competitiveness, efficiency, and sustainability of our business, making Braskem better prepared to face the adversities of the global petrochemical scenario and guaranteeing its perpetuity. In order to guarantee the continued progress of the transformation, it is essential that the company continues to identify and implement resilience measures. These actions are fundamental to mitigating the impact of the cycle on the company's results and cash flow, strengthening thus the competitiveness of our business throughout this prolonged downturn. Braskem reaffirms its commitment to the competitiveness of the Brazilian chemical industry. Together with associations, clients, suppliers, and society, it will continue to promote initiatives that guarantee a level playing field and a fair competitiveness for the Brazilian industry, making a consistent contribution to the sector's development.

Efficiency and sustainability of our business, making brascan and better prepared to face the adversity of the global petrochemical scenario and guaranteeing its perpetuity.

Or are there to guarantee the continued progress of the transformation, it's essential that the company continues to identify and implement resilience measures.

These actions are fundamental to mitigating the impact of the cycle on the company as a result and cash flow.

Strengthening the competitiveness of our business throughout this prolonged downturn.

Asking reaffirmed its commitment to the competitiveness of the Brazilian chemical industry together with associations clients suppliers and society. It will continue to promote initiatives that guarantee level.

Playing field and a fair competitiveness for the Brazilian industry, making a consistent contribution to the sector's development.

Rosana Avolio: In addition, the company maintains its commitment to the agreement signed in Maceió, conducting each stage with transparency, responsibility, and respect for all parties involved. Finally, it's essential to emphasize that all our priorities will be carried out while maintaining our commitment to safety in our operations. Safety is and will continue to be a perpetual and non-negotiable value in Braskem strategy, guiding every action and decision the company makes. This concludes the presentation of Braskem for Q3 2025.

In addition, the company maintains its commitment to the agreements signed and myself conducting each stage with transparency Christmas ability and respect for all parties involved finally, it's essential to emphasize that all our priorities will be carried out while maintaining our commitment to safety.

In our operations safety is and will continue to be upper petrol and known negotiable value in breast cancer strategy guiding every action and decision the company makes.

This concludes the presentation of breast Kim.

For the third quarter of 2025.

Okay.

Okay.

Ladies and gentlemen.

Roberto Ramos: Ladies and gentlemen, we will now begin the question and answer session. Please, you may proceed. Good afternoon, everyone. This is Roberto Ramos, President of Braskem. Before we begin the Q&A session, I'd like to highlight some aspects from the presentation, in addition to some updates about the financial and economic alternatives for our capital structure, which are currently in effect in assistance from our external consultants, as we announced in 25 September. That work in developing our strategy for the 2026, 2030 cycle begin in August and have now been finished by the administrative board. We've made some significant conclusions about the company's mid and long-term outlooks. We have ascertained that the perspectives for the local and international petrochemical industry have suffered a significant negative impact for a number of reasons.

We will now begin the question and answer session.

Please.

Proceed.

Okay.

Good afternoon, everyone.

President.

Russ Com before we begin the Q&A session I'd like to highlight some aspects from the presentation. In addition to some updates about the financial and economic alternatives for our capital structure, which are currently in effect.

Assistance from our extra.

External consultants as we announced in September 25.

Uh huh.

That work in.

Our strategy for the 2026 2030 cycle.

Begin.

August.

And have now.

Finish it by the administrative board.

We've made some significant conclusions about the company's mid and long term outlooks.

Got it.

We have ascertained that the perspectives for the local and international petrochemical industry have suffered a significant.

Negative impact for a number of reasons.

Roberto Ramos: China will continue to make significant expansions in its ethylene, propylene, and polypropylene chains using different feedstocks and solutions. In the Middle East, there are similar movements. This movement by the Chinese government will have a significant impact on the global scenario, with over 40 new crackers increasing production by 70 or 100 million tons, respectively. This will have a significant effect as well on the different petrochemical plants' idle capacities. This, combined with the very timid rationalization in the petrochemical industry, updates our idle projections. We project a significant gap between supply and demand up until at least the turning of the decade. The companies and the petrochemical industry's mid and long-term outlooks must be updated. This leads to our strategic planning project.

China will continue to make significant expansions in its ethylene propylene propylene in polypropylene chains.

Using different feedstocks and.

Our solutions also because in the middle East there are similar movements.

Movement by the Chinese government will have a significant impact on the global scenario with over 40, new crackers.

Increasing.

Production by 70 or 100 million tons, respectively.

This will have a significant effect as well on the different petrochemical plants idle capacities.

This combined with the very timid rationalization in the petrochemical industry.

Okay.

Updates are idle projections.

We project.

Different gap between supply and demand up until at least the turning of the decade.

As such the <unk>.

Companies and the petrochemical industries mid and long term outlooks.

Must be updated.

And so this leads to our strategic planning project.

So in September the company announced the contracting of external consultants to investigate a healthier capital structure.

Roberto Ramos: In September, the company announced the contracting of external consultants to investigate a healthier capital structure. This is given the projection that the downward cycle is going to be longer than we expected. Since then, we have been updating our mid and long-term strategies and outlooks. This is made even more challenging by the 2025, 2026 cycle. Any potential change about the path forward must consider these projections. As always, the company will keep its investors and the market as a whole duly informed about all material developments and conclusions about the topic. Lastly, please note that in spite of any negative outlooks or projections, Braskem continues to move forward with its resiliency project, which was approved by its shareholders in 25 and focuses on increasing global competitiveness around the world.

And this is given the projection that the downward cycle is going to be longer than we expected. Since then we have been updating our mid and long term strategies and outlooks.

Yes.

This is made even more challenging by the 'twenty to 'twenty five 'twenty six cycles.

Any potential change.

The path to path forward must consider these projections.

As always the company will keep its investors and the market as a whole duly informed about all material development and conclusions about the topic Lastly, please note that.

Any.

In spite of any negative outlooks or projections Braskem continues to move forward with its resiliency project, which was approved by shareholders in 'twenty five.

And focuses on increasing global competitivity around the world.

Yes.

Roberto Ramos: As such, I'd like to highlight some initiatives linked to value generation for various stakeholders, emphasizing on maximizing EBITDA and cash generation, which were announced recently by Rosana. First, defense of competitive for the Brazilian industry. By maintaining the 20% import rate for various feedstocks, to approving various antidumping laws and rights with regard to the US and Canada, and also with regard to PVC in the US. Three, approval in the Chamber of Deputies of a bill here, PL 892/2025, which sets forth rules about the REIQ and PRESIQ, which is now going to the Federal Senate for approval.

I'd like to highlight some initiatives.

Linked to value generation for various stakeholders, emphasizing on maximizing EBITDA and cash generation, which we're.

Nounced recently by Ozona.

First defense of Competitivity for the Brazilian industry.

By maintaining the 20% import right.

For various feedstocks too.

Sure.

Approving various antidumping laws and rights with regard to the U S and Canada and also with regard to PTC in the U S. Three approval in the chamber of Deputies.

Ah Ah Ah Bill here.

<unk> 892 slashed 2025.

Which.

Which sets forth rules about the rake and predict which is now going to the Brazilian Senate for approval.

Next the hibernation of the Chlor soda plant in September 25.

Roberto Ramos: The hibernation of the chlor-alkali plant in September 25, with the goal of making PVC production in Alagoas more competitive and sustainable by importing EDC. The feedstock makes our PVC plant more competitive and also approving the Transforma Rio project, which will make Braskem more competitive by using gas in its feedstock matrix to produce polyethylene. Operating improvement, which have been generated by over 700 initiatives in 79 different action plans, which include the use of inventories linked to CapEx, producing resin with lower or higher added value, pardon. Reducing downtime in plants due to upgrades, which is something that used to hurt us. Improving our use of feedstocks and inputs, and also the use of fiscal incentives and credits. That being said, I will now begin to answer our listeners' questions. Thank you.

<unk> of making PVC production in Alagoas, more competitive and sustainable by importing E D C.

This feedstock mix, our PVC plant more competitive and also approving the transformer Rio project, which will make braskem more competitive by using gas and it's in stock matrix to produce polyethylene.

And next.

Operating improvement.

Where have been generated by over 700 initiatives and their 79 different action plans.

Which include the use of inventories linked to Capex.

Producing resin with lower or higher added value pardon.

Reducing downtime in our plants due to upgrades, which is something that used to hurt us.

Improving our use of feedstocks and.

<unk>.

And also the use of fiscal incentives and credits.

So that being said I will now begin to answer our our listeners questions.

Okay.

Okay.

Thank you Beth I'll start with the questions that we receive on the chat.

Rosana Avolio: Thank you, Roberto. I'll start with the questions that we received on the chat. There's some convergence in some points. I'm going to answer some individual questions, then I'm going to answer the questions that are grouped in terms of content, starting with Vicente with Banco Bradesco. Vicente asked two questions. The first one, he makes some comments as follows. Lot had happened since the last call, and Braskem hire financial assessors to help them in the restructuring. When are we going to have a decision on this? Does the company considers injecting equity now that Alagoas case seems to be completed? Vicente also asked us, resin volumes were very weak in this quarter. What was the main economic driver? What can we expect for the quarters to come?

And there's a there's some convergence in some point, so I'm going to answer some difficult questions and then I'm going to answer.

The questions that were are grouped in terms of content, starting with Hussein with Bradesco the scent and ask you two questions. The first one he make some comments as follows.

Lots have happened since the last call and briskin higher.

<unk> financial our sensors to help them and those restructuring when are we going to have a decision on this and does the company.

You can see there is injecting equity now that Alagoas case and should be completed and the sense also ask us.

Resin volumes were very weak in this quarter what was the main economic driver what can we expect for the quarters to come.

Roberto Ramos: Thank you, Rosana, and thank you, Vicente, for the question. I'll field the first one, and Rosana will handle your second question. With regard to hiring the advisors, as you can imagine, this is something that comes up rather often. It's an important decision of the company, which was actually a relevant fact that was announced to the market in September. What we can state right now is what Roberto has just read when he opened the Q&A session. Vis-a-vis any decision pertaining to whatever route we will move forward is still subject to the completion of this diagnostic, especially with the necessary adaptations by the company's board. At this moment, these discussions are already being elaborated on the results as well, so that we can, as we mentioned previously, develop in a conjunction with the company's main stakeholders, something that will effectively reorganize Braskem's capital structure.

Thank you and thank you presented for the question.

Right.

Okay.

I'll field. The first one and has I know will handle your second question with regards to hiring the advisors as you can imagine.

This is something that comes up rather often it's an important decision of the company, which was actually a relevant fact that was announced to the market in September.

And what we can state.

Right now is what Roberto has just read.

When he opened the Q&A session.

These are the any decision.

Pertaining to whatever route we will move forward is still subject to the completion of this diagnostic and especially we see necessary adaptations by the company's board.

At this moment these discussions are already being elaborated on the results as well.

So that we can as I mentioned previously.

<unk> in conjunction with the company's main stakeholders something that will effectively reorganize brass comes capital structure.

Roberto Ramos: At the present moment, no options are discarded or confirmed. Everything is open. Rosana.

At the present moment no options are.

Discarded or confirmed everything is open hosanna.

Yes of course, I think if for the question.

Rosana Avolio: Yes, of course. Thank you for the question. You know the company quite well. In a quarterly basis, we see some dynamics of seasonality. In the historic seasonality, Q3 tends to be the best period because it anticipates the weekend, end of year, celebrations and the formation of inventory levels. It was different this year, however. If we consider 2025 compared to 2024, if we consider the demand growth of resins, we do not see a growth posted in this line. We see that demand of resins, the demand of plastic is strongly associated with the Brazilian GDP. When we talk about the PE and PP, we can see that there is a drop of about 4% for the next months.

You know the company quite well in a quarterly basis, we see.

C are the dynamics.

Dynamics of Susan ability and in the historic says and the ability the third quarter tends to be the best period, because it anticipates the weekend O N.

And of your.

Celebrations and the formation of inventory levels.

This year. However, if we consider 2025 compared to 'twenty 'twenty four and if we can see that the demand growth of resins, we do not see a growth posted in this line.

We see that the man the resins the demand of plastic is strongly associated with the Brazilian GDP.

When we talk about the B M. P. P. We can see that there is.

Drop.

Oh about 4% for the next months for the ear to come or we see a recovery of about 3%, but without any doubt there was a drop when compared to last year. This is C. Because of this in education law, we have seen a very important demand from this sector job to do.

Rosana Avolio: For the years to come, we see a recovery of about 3%, without any doubt, there was a drop when compared to last year. PVC, because of the sanitation law, we have seen a very important demand from the sectors of two and the civil construction. That is a result from the sanitation law. We expect a 3% growth for this year, just what we, just as we saw in Q3, when we compare to the previous quarter, we saw a 3% growth. For the next year, we expect a growth of 3% based on the sanitation law.

And the civil construction that is a result from the sanitation law. So we expect a 3% growth for this year.

She has worked with it just as we saw in the third quarter when we compare to the previous quarter, we saw 3% growth and for the next year, we expect a growth of 3% based on the sanitation law.

And a general comment I would like to make.

Rosana Avolio: A general comment I would like to make, we have seen from the global viewpoint, a very weakened demand, or I would even say an uncertain demand due to tariff war that we have seen along the year of 2025. I will answer the next question by Gabriel with Citigroup. This is his question. It's about in relation to Transforma Rio project, could you provide us the timeline of the investment and the impact expected on the EBITDA of the company? In addition, could you talk about the funding of the project? Could Petrobras take part in the funding of the project? The second question is as follows: could you provide an update on the PRESIQ and what are the discussions like in Brasília? Is there a timeline to provide? What would be the potential impact for the company?

We have seen it from the global viewpoint very weekend event or I would even say uninsured in demand due to.

Terrorism War that we have seen along the year of 2025.

They got to go out a press might be long term.

Key vein do Gabriele.

Answer the next question by company L. With Citi. This is his question.

About a religion Childrenswear Maria project could you provide us the timeline of the investment and the impact expected on the EBITDA of the company. In addition could you talk about the funding of the project.

Could the Petro plastic part and the funding of the project and the second question is as follows could you provide an update on the <unk> and what are the discussions like in Brazilian is there a timeline to provide what would be the potential impact for the company.

Okay.

Roberto Ramos: All right, I'll begin with Transforma Rio and Roberto can talk about Prebic afterwards. With regard to Transforma Rio, as Rosana presented now, we have a schedule. The project will begin its engineering phase right now, and this persists until the end of 2028 or the beginning of 2029, at which point the project will be completed. If we do some math to calculate the added value that this could bring to the company's EBITDA and using a 220,000 tons installed capacity as announced, and using an average from the spreads of the previous years, which is the $860 per ton, this brings us to just under $200 million per year of additional EBITDA that we will bring to the company.

Alright, I'll begin with transform of Rio and Roberto can talk about crazy afterwards.

So with regard to transform our REO.

As we.

<unk> presented now we have a schedule.

The project will begin its engineering phase right now and this persists until the end of 'twenty eight or the beginning of 2029 at which point the project will be completed.

Okay.

If we do some math to calculate the added value that this could bring to the company as a beta.

And using a 220000 tons installed capacity as announced.

And using an average from the spreads of the previous years, which is $860 per ton. This brings us to just under $200 million.

Per year of additional debt that we will bring to the company.

Roberto Ramos: With regard to financing this project, which is extremely important, as was also announced in our relevant fact, there is a condition for this project to persist so that it can have the needed resources and funds so that it can proceed with the company's cash flow. At this first stage, we use the funds that are already available for the company from the rake and investment. This allows us to neutralize those impacts to our cash by the first part of 2026. After that, the need to raise additional funds is already included in the context. Actually the first question that was asked for with regard to restructuring the company, this already includes this project. Due to the nature of the project, very likely we were going to find funding sources, but this is not yet defined.

With regard to financing this project, which is extremely important.

As was also announced in a relevant fact.

There is a can.

<unk> for this project to persist.

It can have the needed.

Resources and funds so that it can proceed with the company's cash flow. So at this first stage. We use the funds that are already available for the company from the rig and investments.

This allows us to neutralize those impacts to our cash.

By the first part of 2026 and after that.

Need to raise additional funds is already included in the context. So actually the first question that was asked for with regard to restructuring. The company. This has this already includes this project due to the nature of the project very likely we were going to find.

So funding sources, but this is not yet defined it is still being discussed it will be.

Roberto Ramos: It is still being discussed. It will be defined as soon as possible so that this project will not be delayed. Roberto, could you talk about PRESIQ and our forecasts for next steps? Yes, of course. The project, as you know, was approved by the Chamber of Deputies here in Brazil and was sent to the Federal Senate. Abiquim and ourselves as members of Abiquim, the Brazilian Chemical Industry, is pushing for this to be voted on with urgency so that it can be duly studied by the Industry and Trade Commission, and then follow on to the plenary session to actually be voted on. We believe that if we manage to get it evaluated with urgency, it can still be signed this year, maybe in November, or if not November, then at least in December, so that it will have an impact on the 2026 results.

Find as soon as possible so that this project.

Will not be delayed Roberto could you talk about prism and our forecast for next steps.

Yes of course the project as you know was approved by the chamber here in Brazil and was sent to the Senate.

Yeah.

I became.

And ourselves as members of I became the Brazilian chemical industry is.

Pushing for this to be voted on with urgency.

So that.

It can be duly studied by the industry and trade Commission and then follow on to the plenary session to actually be voted on and we believe that if we manage to get it.

Evaluated with urgency it can still be signed this year maybe in November.

Or if not November then at least in December.

Yeah.

So that.

It will have an impact on the 2026 results, it's very difficult to make projections about how quickly. These bills go through whether it's in the chamber or in the Senate.

Roberto Ramos: It's very difficult to make projections about how quickly these bills go through, whether it's in the Chamber or in the Senate, because political scenarios change every day. New scenarios produce the need for other discussions and other topics to be pushed forward. It's very difficult for us to give any kind of forecast as to when we think this will happen. It's our wish and our firm belief that this will be approved in 2025.

Because.

Political scenarios change everyday new scenarios.

The need for other discussions and other topics to be pushed forward. So it's very difficult for us to give any kind of forecast as to when we think this will happen, but it's our wish and our firm belief.

That this will be approved in 2025.

But.

Thank you her bathroom Felipe.

Rosana Avolio: Thank you, Roberto, Felipe. Now a question about Alagoas, about a recent announcement. We disclosed a material fact yesterday. Since there are many questions, I'm going to try to focus on the main points. There's a request for more details about the agreement in Alagoas, especially in relation to the schedule of payment expected. There's a question if there is flexibility of the amount considering each payment individually.

Now a question about the law goes about a recent announcement, we disclosed the material fact yesterday since there are many questions I'm going to try to focus on the main points.

Yes.

That's helpful.

So.

There's a request for more details about the agreement in Alagoas, especially in relation to this casual of payment expected.

There's a question if there is flexibility of the amounts considering each payment individually.

Yeah.

Thanks for the question.

Roberto Ramos: Thanks for the question. The state of Alagoas, as we mentioned in the material fact, signed with Braskem this agreement. It now needs to once again go through the legal approval by the public sector. This is a BRL 1.2 billion, of which BRL 139 million have already been paid by Braskem. The remaining balance, and this is a very important topic in the negotiations by both parties or all parties, with regard to Braskem's present financial condition, was established so that this agreement would be paid over a 10-year period. That's our material fact. The initial installments up until 2030 do respect the company's projected financial condition, which is a result of the entire tightening of the whole global petrochemical cycle, and Braskem is tied to it.

The state of Alagoas, as we mentioned in the material fact signed with Braskem disagreement.

It now needs to once again go through the legal approval by the public sector.

This is a $1 2 billion of which $139 million.

Have already been paid by breast cancer, so the remaining balance.

And this is a very important topic in the negotiations by both parties, where all parties.

With regard to breast cancer present financial condition.

<unk> was established so that this agreement would be paid over a 10 year period. So that's our material fact, and the initial installment up until 2030 due respect the company's projected financial condition, which is a result of the entire tightening of the <unk>.

Whole global petrochemical cycle, and Braskem is tied to it and after.

Roberto Ramos: After that period, these factors become even more material and move to make Braskem's financial condition recover, as Rosana mentioned in the beginning of your call, and that includes the transformation, Switch to Gas and Fly up to Green, and all of our green projects in a context with more rational balance between supply and demand for the global petrochemical sector.

After that period.

These factors become even more material.

And.

Yes.

Move to make brush camps financial condition recover as Rosanna mentioned at the beginning of your call and and that includes the transformation switched to gas fly up to green and all of our green projects.

Context, with more rational balance between supply and demand for the global petrochemical sector.

Rosana Avolio: Thank you, Felipe. Moving on along the same lines, there's a question by Gustavo with BTG, which is consistent with what you just mentioned. In a scenario of a possible change of control in the pillar of transformation, what do you believe to be non-negotiable to sustain the long-term cases? There is the green agenda. The second question, what is material in terms of hibernation of capacity in Europe and in Asia? How does it compare to the scenarios announced in the past? As the company sees it, the rationalization tends to be relevant within 2 years. Last thing in relation to Braskem Idesa. With the ethane terminal in operation, what are the app capacity that you would consider to be normalized for Braskem Idesa? How long this asset is likely to start contributing again for reducing the consolidated leverage level?

Thank you Felipe.

Moving on along the same lines. There's a question back stop with it as you wish.

Just consistent with what you've just mentioned.

In a scenario of a possible change of control in the pillar of our transformation what do you believe to be non negotiable to sustain the long term.

Cases, so there is the green agenda. The second question what is material in terms of hibernation of capacity in Europe and in Asia, and how does it compare to the scenarios announced in the past as the company sees it the rationalization tends to be.

Relevant it within two years and lastly in relation to breast cancer, a disease with the ethane terminal in operation what are the add the capacity that you would consider to be normalized for Braskem your data and how long. This asset is likely to start contributing again for reducing the consolidated <unk>.

Bridge level.

Of course thank.

Roberto Ramos: Of course. Thank you, Rosana, and thank you, Gustavo. The answer to the first question is contained right in the question. It is in fact what the company believes it has as far as ability to add value to all its stakeholders. That is, continuing with the transformation plan, our migration to gas, our focus on competitive assets and the green agenda, or what we call here in-house as Fly up to Green. A new, if a new potential shareholder has a different view, that it is difficult to answer that, because if we already had that view, we would certainly be implementing it right now. It really will depend on what such a question would be, if and when such a new shareholder would be. With regard to our strategic plan, this is what we have been working on throughout 2025.

Thank you Regina and thank you Gustavo.

The answer to the first question is contained right in the question.

In fact, what the company believes it has as far as our ability to add value to all its stakeholders.

Is continuing with the transformation plan, our migration to gas our focus on competitive assets and the green agenda or what we call here in house.

By up to Green.

A new.

If a new potential shareholder has a different view, but it's difficult to answer that because if we already had that view, we would certainly be implementing it right now.

It really will depend on what such a question would be if and when such a new shareholder would be with regard to our strategic plan. This is what we've been working on throughout 2020.

With regard to.

Roberto Ramos: With regard to the perspectives of closing or hibernating Europe, that depends on rationalization and our rationalization strategy. What we've been seeing is that rationalization has been lower than what we initially projected. We know this from our own experience. We announced recently the hibernation of chlor-alkali. This is a decision that was made in the beginning of the year and was only implemented in September. These decisions all take significant time to implement with all the due care and precautions that are needed so that they can actually happen in the most sustainable, rational, and also productive possible ways for the company. Roberto, I have two points. First, our strategic plan was approved by our board of administrators, which is composed of, there's a significant stake by Petrobras there.

The perspectives of closing or hibernating Europe that depends on rationalization.

And our rationalization strategy, what we've been seeing is that.

Rationalization has been lower than what we initially projected.

We know this.

Tom.

Our own experience, we announced recently the hibernation of Chlor soda.

This is a decision that was made in the beginning of the year and was only implemented in September.

Level.

So these decisions all takes significant time to implement with all the due care and precautions that are needed. So that they can actually happen in the most sustainable and rational and also productive possible ways for the company Rebecca.

Yes.

I have two points.

Yes.

First our strategic plan was approved by our board.

Administrators.

Which is.

Compose.

There's a significant.

Stake by Petrobras there so Petrobras is certainly.

Roberto Ramos: Petrobras is certainly aligned with our vision. I'm sure that Petrobras will continue to have that same vision regardless of whatever new shareholder comes in, if that happens. Again, this needs to be approved by all shareholders. We never do anything different from what is approved by the shareholders. This new shareholder, if and when someone arrives, they will need to get involved in discussions with all shareholders, as always. With regard to Europe, what we are seeing in Europe is announced shutting down of units and refineries. One of the biggest petrochemical companies in the world, which has units in England and the Netherlands, has closed dozens of refineries in the previous years.

Aligned.

With our vision and I'm sure that Petrobras will continue to have that same vision, regardless of whatever new shareholder comes in.

If that happens.

And again this needs to be approved by all shareholders. We never do anything different from what is approved by the shareholders. So this new shelf her holder, if and when someone arrives they will need to.

Get involved in discussions with.

With.

All shareholders as always.

With regard to Europe, what we are seeing in Europe.

As announced shut.

Shutting down of units and refineries one of the biggest petrochemical companies in the world.

Which is.

Is has.

Units in England, and the Netherlands has closed dozens of refineries.

In the previous years.

The precedent of a large European petrochemical company announced the closure of 12 million tons of capacity.

Roberto Ramos: The president of a large European petrochemical company announced the closure of 12 million tons of capacity of ethylene production in Europe if they do not obtain the necessary protection measures, that includes either antidumping or tariffs, to prevent the arrival of products, especially from China, that come into Europe. That also includes US products that arrive in Europe without any import tariffs. That being said, Europe is strategically long in propene. Our polypropylene plants use propene as a feedstock. It's really about finding the needed logistics. If we need to replace any current suppliers, we'll do that. The propene molecule, which is important for us, will continue to exist. It will just be a matter of plugging the right numbers into the equation.

Ethylene production in Europe.

If they do not obtain the necessary protection measures that includes either antidumping or tariffs to prevent the arrival of products, especially from China that come into Europe that also includes U S products arrive in Europe without.

Any import tariffs.

Now that being said.

Europe is strategically long in protein.

Now our polypropylene plants use propane as a feedstock.

So it's really about finding the needed logistics.

So.

If we need to replace any current suppliers will do that but the protein molecule, which is important for us.

We'll continue to exist.

It will just be a matter of plugging the right numbers into the equation.

Thank you how about them in relation to ethane terminal only to provide the context.

Rosana Avolio: Thank you, Roberto. In relation to ethane terminal, only to provide the context. Today, we have Braskem Idesa solution for the import of 80,000 barrels per day. Braskem Idesa, to run the total capacity, would require 66 barrels per day. The total focus of Braskem team is to run full capacity. An operation rate above 90%, that in our industry is extremely high. That would be the focus. From the startup of the terminal, we have had the operating results very positive, all in line with what's expected. When you made a comment about the consistent way of reducing the consolidated leverage, it's good to remember that Braskem Idesa, since when we developed this project, it was devised by means of limited recourse. At the time, all the bonds, all the debts have no collateral by Braskem.

Today, we have a basket and theres a solution for the imports of 80000 barrels per day.

First can he does it to run the total capacity would require six to six barrels per day and therefore, the total focus on Burger King team is to run to capacity.

So in operation rate above 90%.

And our industry in our English is extremely high that would be the focus.

The startup of the terminal we have had the operating results very positive.

It's all in line with what <unk> expected and when you made a comment about the consistent way of reducing the consolidated leverage Oh, it's good to remember that our basket. It is since when we develop this project it was devised by means.

The name.

Remember of course at the time all of the bonds all of the debt.

Have no collateral by breast game.

This came as a controller of the asset. So every time, we are announcing our.

Rosana Avolio: Braskem as a controller of the asset. Every time we are announcing our cash position, our debt coverage, and the consolidated leverage, we do not consider the cash position or EBITDA or the debt of Braskem Idesa. The way it's gonna contribute to the future is when there will be dividend payments. In fact, since the startup of the plant in 2016, considering everything that we went through, you know, the reduction of ethane supply, the renegotiation of ethane contract, there's a limitation of the availability of ethane in Mexico, and this is why we made this investment. We received dividends only once in the past 10 years. The total focus of the team is to increase operating rate, increase the sales volume, focus on the Mexican market.

Cash position our debt coverage at the consolidated leverage we did not consider the cash position or EBITDA or the debt Canada is in.

The way, it's going to contribute to the future is when there will be dividend payments.

In fact since the start off of the plan in 2016.

Because he's doing everything that we went through you know the reduction of ethane supply the renegotiation of ethane contract. So theres a limitation of the availability of ethane in Mexico.

And this is why we made this investment.

We received dividends the only ones in the past 10 years. So the total focus of the team is to increase the operating rate to increase the sales volume focus on the Mexican market that this was the first purpose when the product was devised which is to meet the demands of the Mexican market.

Rosana Avolio: This was the first purpose when the project was devised, which is to meet the demands of the Mexican market. As there is a more balanced capital structure, we will consider the contribution for Braskem.

And as there is a more balanced capital structure, we will consider the contribution for breast cancer.

Arizona Gustavo also asked about China.

Roberto Ramos: Hey, Rosana, Gustavo also asked about China. Whether the movements in China tend to have an impact on the market. I believe Rosana already mentioned this in her presentation. We are looking at an increase in 20 to 30 million tons of additional capacity in China over the next 5 years. Essentially resulting from crackers, whether they are gas-based or naphtha-based, and also whether they are carbon-based, believe it or not. Even Gas-to-Olefins and Methanol-to-Olefins plants. These are four different types of feedstocks that China is coordinating in its search for self-sufficiency with regard to PE consumption. It's always very difficult to understand the scale of this shift. This means that China's trend is, just as it is in polypropylene, to be a net importer of polyethylene.

And whether the movements in China tends to have an impact on the market.

I believe Rosanna already mentioned this in her presentation. We are looking at an increase in 20 to 30 million tons of additional capacity in China over the next five years.

Yeah.

Essentially resulting from crackers, whether they are gas base or naphtha base.

And also whether they are carbon base believe it or not.

And.

Even.

Gas for olefins and methanol for all your friends plants. So these are four different types of feedstocks that China is coordinating in its search for self sufficiency.

With regard to P E consumption.

And it's always very difficult to understand that the scale of this shift but this means that China's trend is just as it is in polypropylene to be a net importer of polyethylene today. It is currently an importer of polypropylene, but it will.

Roberto Ramos: Today, it is currently an importer of polypropylene, but it will become self-sufficient after some time, and it will become a net exporter of polyethylene as well. This is the baseline scenario for us, and it's a scenario that leads us to conclude that this downward cycle will extend for many years.

Will become self sufficient after some time and it will become a net exporter of polyethylene as well.

This is the baseline scenario for us and it's a scenario that leads us to conclude that this downward cycle will extend for many years.

Okay.

Thank you Roberto.

Rosana Avolio: Thank you, Roberto. Another question by Joaquín with Moneda. He asked us about the context of Transforma Rio contract Has been recently announced by the company. The question is: Have we signed a long-term contract with Petrobras to supply ethane, or Would that depend on the construction of the project?

Another question.

Sure Kim with Moneda.

The other context of transform a real context that has being recently announced by the company. The question is have we signed a long term contract with Petrobras to supply ethane or the wood that it depends on the construction of the project.

Thanks for the question.

Roberto Ramos: Thanks for the question. Yes, as we mentioned in the material fact, Braskem's board approved the terms of the negotiation between Petrobras and Braskem for ethane supply. This contract has not yet been signed. It is still subject to being concluded. This has not yet occurred. It is still currently in negotiations. Within the schedule that we announced recently, that Rosana announced recently, but we do not foresee any kind of change. The commercial conditions have already been agreed to officially. The only conditions that are still being discussed are secondary conditions that are not material to the contract.

Yes, as we mentioned in the material fact breast cameras board.

Approved the terms of the negotiation between Bachelor brass and Braskem for ethane supply.

But this contract has not yet been signed it is still subject to being concluded.

Okay.

This has not yet occurred it is still currently in negotiations and so within the schedule that we announced recently that was announced recently.

But we do not foresee any kind of change the.

<unk>.

The commercial conditions have already been agreed to officially.

The only conditions that are still being discussed are secondary conditions that are not material to the contract.

Rosana Avolio: Thank you. Moving on. Conrado, Banco Safra asks the following: To whom you attribute the sequential improvement of the margin in Brazil, the focus that had the better margin and better cost efficiency, or is there any special reason or a combination of all? Is it likely for the margin to continue improving? Thank you, Conrado. I'm gonna answer your question. Let's consider the historical viewpoint. Brazilian business is very important for the company. We saw some improvement with an EBITDA margin of from 5% to 9%, but be below what would be a historical margin for this business. As a result of everything that we mentioned in this call, capacity, the demand is weakened when compared to the historical levels, especially 2010, 2019, putting pressure on the petrochemical spread at the international level.

Thank you moving on I'll handle.

Oh, sorry for asking the following.

Yeah.

To whom you are a tribute to the sequentially improvement of the margin in Brazil. The focus that has it been better margin and better cost efficiency or is there any special reason or a combination of all is there is it likely for the margin to continue improving.

Thank you Cole had I'm going to answer your question.

Let's consider the historical viewpoint.

Brazilian business is very important for the company without or we saw some improvement with an EBITDA margin all from part two 9%, but b b are below what would be a historical margin for this business and as a result of everything that we mentioned in this call.

The capacity the demand is weekend when compared to the historical levels, especially 'twenty.

10, 2019, putting pressure on the petrochemicals proud that the international level.

Rosana Avolio: This is where our resiliency program stands. When you ask what were the factors, without a doubt, this is a combination of different factors. Without a doubt, we are always going to prioritize the supply of the Brazilian market, the South American market, but we have been going for grades whose value added is higher for the company. In terms of cost reduction, we have made different renegotiations with our suppliers, and we've been seizing to reduce logistics costs. In addition, when considering the EBITDA and the cash flow, we captured along the year nearly $100 million as the numbers presented in presentation, and that was driven by the optimization of inventory levels.

And this is where our resiliency program stands.

So when you ask what were the factors without a doubt. This is a combination of different factors without a doubt we're always going to prioritize the supply of the Brazilian market.

South American market, but we have been going for grade whose value added is higher for the company in terms of our cost reduction we have made different renegotiations with our suppliers and we've been seeking to reduce logistics costs.

In addition.

When considering that EBITDA into cash flow, we captured along the year of nearly $100 million.

As the numbers presented in the presentation and it was driven by the optimization of inventory levels and when the spread which is the main contributor to the result of any petrochemical industry when its it stands at a level, which historically low.

Rosana Avolio: When the spread, which is the main contributor to the result of any petrochemical industry, when it stands at a level which historically low, the company has to operate in such a way to mitigate this impact, partially of this downward turn. This is something we are going to continue doing. We are going to continue communicating quarterly.

No.

The company has to operate in such a way to mitigate this impact.

Partially of the downward turn and this is something we're going to continue doing we're going to continue.

Communicating.

Mitigating core I just wanted to add one thing.

Roberto Ramos: I just wanted to add one thing. With regard to when Braskem was created 20 years ago, the major difference with regard to supply and demand is that at the time, the European petrochemical industry was very important. It was actually the largest in the world, and it gradually lost competitiveness and has been replaced by the petrochemical industry that is being created in China and that already existed in the Middle East and was expanded. The consequences are that the new petrochemical industries that were created, and also in Japan and Korea, to a lesser extent, China and Middle East react much more quickly to requests for higher demand than the European industry did. As a result, the high and low cycles are going to be less steep and longer.

With regard to when Braskem was created 20 years ago. The major difference with regard to supply and demand is that at the time the European petrochemical industry was very important it was that were actually the largest in the world.

And it gradually lost Competitivity and has been replaced by the petrochemical industry.

Is being created in China and that already existed in the middle East and was expanded.

The.

The consequences are that the new petrochemical industries.

That were created and also with <unk> in Japan, and Korea, but to a lesser extent, but China and middle East react much more quickly to request for higher demand than the European industry.

As a result.

The high and low cycles are going to be less steep.

And longer.

Okay.

And as a result of that the petrochemical industry must adjust its processes reduce its cost so that it can coexist with a new reality for the future.

Roberto Ramos: As a result of that, the petrochemical industry must adjust its processes, reduce its costs, so that it can coexist with the new reality for the future, where the EBITDA margins are not going to be exuberant as they were before, 20% or more. These margins are going to be more contained, closer to the refinery margins. We need to reinvent the way we operate petrochemical plants, for example, by reducing the impact of labor, increasing automation, and using artificial intelligence tools to make the plant respond automatically to certain requests. All of this will reduce direct cost and fixed cost. This movement is an intrinsic part of our resiliency plan. We've had results in 2025. We're going to capture even more of them in 2026. This is inexorable.

We're a bit the margins are not going to be exuberance as they were before 20% or more.

Margins are going to be more contained closer to the refinery margins and so we need to reinvent the way we operate petrochemical plant for example by reducing the impact of labor increasing automation.

Okay.

Using artificial intelligence tools to make the plant respond automatically to certain requests.

All of this will reduce direct cost and fixed cost.

Yeah.

Sure.

This movement is.

An intrinsic part of our resiliency plan. We've had results in 2025, we're going to capture even more of them. In 26. This is inexorable, it's a new reality in the petrochemical industry and everyone is going to need to adapt to this new way of doing business.

Roberto Ramos: It's a new reality in the petrochemical industry, and everyone is going to need to adapt to this new way of doing business.

Thank you [laughter] Battle I'm Gonna.

Rosana Avolio: Thank you, Roberto. I'm gonna read a question that we received from different people participating in this call in relation to the possible sale of Novonor and the change of control, bringing the name of J&F, as a result of what we've seen in the media. There is a question asking if we have any type of timeline to complete the discussion, especially in the case of J&F.

Read a question that we received from different people participating in this call in relation to the possible sale of novel Moa.

And the change of control.

Bring in the name of IAG for them as a result of what we've seen in the media.

So there is a question asking if we have any type of timeline to complete the discussion, especially in the case of our IGF one.

Yeah.

I would really love to be able to give you that answer unfortunately.

Roberto Ramos: I would really love to be able to give you that answer. Unfortunately, I can't. As we've been saying repeatedly, we are not party to that negotiation. The information we receive from Novonor, everything we receive, we immediately convey to the market through material facts, and we are not aware of any topics or any progress that leads to an imminent decision with regard to the sale of Novonor shares. We remain waiting just as the market as a whole is waiting. Of course, it's a topic that is of interest to us. It's of interest to everyone, but we are not even side players. We are merely spectators. Sure, we may be in the first row, but we are spectators nonetheless.

I can't.

As we've been saying.

Repeatedly we are not party to that negotiation the.

The information we receive from an opener everything we receive we immediately convey to the market through material facts.

And we are not aware of any topics or any progress that leads to an imminent decision with regard to the sale of an over north shares.

So we remain waiting just is the market as a whole is waiting of course is the topic that is of interest to us it's of interest to everyone. But we are not even side players. We are merely spectators sure. We may be in the first row, but we are spectators. Nonetheless.

Yeah.

And they might be thinking Roberto Theres, a question of and with Bank of America.

Rosana Avolio: Thank you, Roberto. There's a question of Anne with Bank of America in relation to our transformation in Alagoas. Can you provide more information about Braskem Chlor-Alkali Vinyl Transformation Plant? We would like to understand a little bit more about Olin. She asks if we saw the press release that was published by Olin, and she would like to understand how this relationship is gonna play out. At the end of the day is how to, Transforma Alagoas will perform in general.

<unk> two hours for information in August.

Can you provide more information about breast skin.

Or actually the new transformation plant.

And we would like to understand a little more about only.

And she asks if we saw the press release that was published by only and she would like to understand how this relationship is going to play out. So at the end of the day is how to cause for a while ago will perform in general.

Uh huh.

Well what does this transformation bring us.

Roberto Ramos: Well, what does this transformation bring us? Our chlor-alkali process is based on electrolysis used with salt. This is something that's been in effect since we opened in 2021. It was a brine transformation, and this actually was, it didn't generate value. It produced EDC at a cost that was harmful to the PVC plant. The PVC plant carried the cost of the lack of competitivity from the chlor-soda plant. This is a plant that dated from the 1970s and whose technology had already lost its competitivity, and especially guided by the fact that we needed to bring salt, gem rock salt, halite, which is different from sea salt from Chile. This halite came all the way down south through the coast of Chile, through the Magellan Strait, and then north all the way up through the Brazilian coast.

Our car ethane.

Process.

Is based on.

Electrolysis used with.

With Salt this is something that's been in effect since we opened in 2021.

It was a Brian transformation and this actually was it it didn't generate value. It produced E. D. C. At a cost that was harmful to the PVC plant.

The PVC plant carried the cost of the lack of Competitivity from the car soda plant. This is a plant that data from the 19 seventies.

And whose technology had already lost its competitivity and especially guided by the fact that we needed to bring salt.

Jim Rock Salt highlight which is different from sea salt.

From Chile.

So this halite came all the way down of down south through the coast of Chile through the Magellan Strait and the north all the way up through the Brazilian coast. So the logistics cost was.

Roberto Ramos: The logistics cost was actually just as high as, if not even higher than the halite itself. This was something that could only work if the product, the polyethylene prices were high. Sorry, not polyethylene. PVC. If the costs were sufficient. Replacing EDC manufactured in Alagoas with a non-competitive plant, such as EDC imported from the US made using ethane resulting from shale gas, therefore an appreciable comparative the output of the PVC plant to stop losing money. Now, with this change, we can run our PVC plant at its maximum capacity. We can even apply some improvements that will improve it by 25, maybe 30 tons per year. It will also lead us to produce more material in a shorter amount of time.

Actually just as high as if not even higher than the halite itself. So this was something that could only work if the.

Product that polyethylene prices were high.

Sorry, not polyethylene he corrects himself PVC.

But if the cost for sufficient so replacing E. D C manufactured in Alagoas with a noncompetitive plants, so such as E. D. C imported from the U S made using ethane, resulting from shale gas.

Therefore, a.

Appreciable comparator there.

Sure.

[noise] phenomenon.

Sure.

[music] more for more.

Of the PVC plant to stop losing money now with this change we can run our PVC plant at its maximum capacity, we cannot even apply some improvements that will improve it by 25, maybe 30 per year tons per year.

And.

It will also lead us to produce more material.

In a shorter amount of time.

Okay.

This is all based on the fact that it is going to be produced the PVC is going to be produced from more efficient feedstocks.

Roberto Ramos: This is all based on the fact that it is going to be produced, the PVC is going to be produced from more efficient feedstocks. In addition, in a partnership that we have signed, we are burning cavaco, which is a renewable feedstock. This makes our PVC increasingly more and more green. This is going to improve the results for our sales as well. With regard to the press release from Olin, I apologize, I haven't read it.

In addition in a partnership that we have signed we are burning cavaco, which is a renewable feedstock. This makes our PV see increasingly more and more green.

This is going to improve.

For our sales as well.

With regard to the press release from all of you and I apologize I haven't read it.

Well.

As we mentioned previously.

Rosana Avolio: As we mentioned previously, when we were mentioning Transforma Rio, any change, any project is necessary, requires a raw material contract in order to maintain operational stability. With the change explained by Robert, the answer, yes, we have an agreement for the supply of feedstock of the. It is a long-term contract. Moving on, we have some questions by Regis about PRESIQ. The question is repeated sometimes. It is in relation to PRESIQ. PRESIQ seems to be an important and necessary program in order to control the cash burn of the company. What are the expected impacts of PRESIQ?

When we were mentioning TUSK pharma here any change any project as necessary.

It requires a.

Mhm material contract in order to maintain.

Operational stability with a change explained by Robert the question. The answer yes, we have an agreement for the supply of feedstock.

And it's a long term contract.

Okay.

Moving on we have some questions.

Yes.

<unk> has is about predict and the core.

She has repeated sometimes so its relation to play seek plus he seems to be an important and necessary program in order to control the cash burn of the company what are the expected impact of precinct.

Okay.

Sure.

With regards was always built with Walter.

Roberto Ramos: Thanks for the question. This is a relevant fact, a material fact for the company. It deals with our resiliency and transformation plan. I'll answer in 2 sections. With regard to the year 2026, during which REIQ will still be in effect, and 2 REIQs, the investment and feedstock REIQs. Now, the investment REIQ has no change from what is currently in effect. This is a fiscal benefit, a 1.5% benefit we have based on PIS and COFINS that Braskem pays. As we mentioned previously, this is something we use as our funding for the Transforma Rio project and other projects of the company. The second is the feedstocks REIQ, which today is 0.7. As of 2026, as Roberto mentioned, once this is approved by the president, this will move to 6.25 from the current 0.7.

For the question.

Yeah.

This is a relevant fact, a material factor for the company.

It deals with our resiliency on transformation plan. So I'll answer in two sections with regard to the year 2026.

During which Rick will still be in effect in two rigs the investment and feedstock rigs now the investment rate has no change from what is currently in effect.

This is a physical benefit a 1.5% benefit we have based on peace and coffee.

Breast Kim Perez.

As we mentioned previously this is something we use as our funding for the transformer Rio project and other projects.

Of the company and the second is the feedstocks rake, which today is 0.7.

As of 'twenty or 'twenty six as Roberto mentioned once this is approved by the president.

This will move.

2625 from the current 0.7. So this will mean something in the order of $280 million to $300 million of EBITDA in the year 2026.

Roberto Ramos: This will mean something in the order of $280 to 300 million of EBITDA in the year 2026. Starting as of 2027 up until 2031, which is currently in PRESIQ. It has a yearly budget for the petrochemical industry, and of course, Braskem is part of that, of BRL 3 billion per year, out of which BRL 2.5 billion will be the so-called PRESIQ feedstocks and another BRL 500 million for PRESIQ investments. This is what we are currently working on with our projections, and we currently await that signature as quickly as possible. We hope that it will be approved by the Senate firstly and then by the president. Just a reminder, this sum is for the whole industry. The BRL 3 billion that Felipe mentioned, BRL 3 billion per year.

Starting as of 2027 up until 2031.

[noise], which is currently.

In prison.

It has a yearly budget for the petrochemical industry and of course breast come as part of that.

3 billion Reals per year.

Out of which $2 5 billion highs will be.

The so called President feedstocks, and another 500 million for.

Crazy investments.

So this is what we are currently working on with our projections and we currently await that signature as quickly as possible. We hope that it will be approved by the Senate Firstly and then by the President.

Yeah.

Okay.

Just a reminder.

The sum is for the whole industry, the 3 billion that Philippe mentioned $3 billion per year.

Some is the grant that is being given to the industry as a whole we imagine that braskem will receive something in the order of 50% of that sum.

Roberto Ramos: This sum is the grant that is being given to the industry as a whole. We imagine that Braskem will receive something in the order of 50% of that sum.

Okay.

Rosana Avolio: Thank you, Roberto. To wrap up, due to time limits, we have less questions, and the remaining questions will be answered later. The question is about our projections. There's a comment about our price projections, chemicals and petrochemical spreads. Why would make us so confident to believe that the cycle would continue below of the historical levels in the next five years? They believe that external consulting services has a weak track record to estimate what would be the spread for the future. What they usually do is to extrapolate what's happening at the moment. I'm gonna talk about our planning process at the conceptual level and how we carry out to the mitigation. Before that, I would like to say that the downward cycle has been different from the other ones.

Thank you Roberto.

And to wrap up.

Due to time limits, we have last questions and the remaining questions will be answered to lately.

Later and the question is about our projections.

So there's a comment about our French projections chemicals and petrochemical spreads.

Why would make us so confident to believe that the cycle would continue.

Below the historical levels in the next five years.

Okay.

Yeah.

Yeah.

They believe that external consulting services has a week a track record to estimate what would be the spreads for the future.

And why would they usually do as to extrapolate what's happening at the moment.

So I'm going to talk about our planning process at the conceptual level and how we.

Carryout to the mitigation, but before that I would like to say that the downward to cycle has been different from the other ones.

Rosana Avolio: When we discuss the track record and the weakness and weaknesses of the external consulting services, this is the environment we have been experiencing since 2019. We have seen a weakened demand when compared to the global GDP of 2010 to 2019, which was different what we saw since 2019. As a reminder, the demand for plastic is very connected to the global GDP. The higher the global GDP, the higher the consumption of plastic. Whenever there's a drop in plastic, even though it's been growing, but we see a drop of the global average GDP when compared to the previous decade. In addition to that, there's a very important difference to consider. China, with the driver for new capacities, they are very based on sufficiency and to meet their own demands.

So when we discuss the track record and the weakness and the weaknesses of our external consulting services.

This is the environment, we have been experiencing since 2019, so we have seen a weekend demand when compared to the global.

GDP of 2010 to 2019, which is what's different what we saw since 2019.

As a reminder, the demand for plant plastic is very connected to the global GDP the higher the global GDP the hired a conceptual plastic so whenever there's a drop in plastic even though its been growing but we see a.

The drop of the global average D P when compared to the previous decade.

In addition to that there's a very important difference to consider.

Yeah.

China with the driver with four new capacities, they're very based on self sufficiency.

Sufficiency and to meet their own demand.

And this what we have seen and this is aligned with our external consultancy and this has created a very major oversupply and this is something we showed in the results.

Rosana Avolio: This is what we have seen, and this is aligned with the external consultancies. This has created a very major oversupply, and this is something we showed in the results definition. There is a backlog, and there's a backlog before offer and demand, and the backlog is really huge. When I look into the future, we'll still see capacity coming in, especially in China, in its search for self-sufficiency. When we defined our projections, this is what we considered. By the way, this is an approval process which is still going on. This is a process which will end at the end of the year with the approval by the board, as we have mentioned in this results presentation.

Yeah.

Definitions and there is a backlog and there's a backlog before offering demand and the backlog is really huge and when I look into the future, we still see capacity coming in especially in China in the end it search for self sufficiency.

When we defined our projections. This is what we consider.

And by the way. This is a this is an approval process, which is still going on.

And this is a process where she will end at the end of the Europe I with the approval by the board.

As we have mentioned in the results presentation, so for us to define the.

Rosana Avolio: For us to define the scenarios, we can consider different probabilities in different scenarios. We do not work with a one case only. We incorporate different probabilities when we define the assumptions. Without any doubt, in our base case, we have been more conservative or even more realistic. Realistic would be a better word when we do the rationalization, because that could accelerate or could provide a better support to the better spread for the future. As we mentioned in this call, it's very difficult to estimate other people's decision. There are external consultancies that provide the cash costs of all producers in the world, but we do not have the disclosure of any agreement between suppliers and clients. The decision of investment to close plant is not decision based only on cash cost.

Scenarios, we can consider different vulnerabilities in different scenarios.

We didn't have to work with one case only we incorporate to different probabilities when we defined the assumptions and without any doubt in our base case, we have been more conservative are even more realistic realistic would be a better word when we do the rest and elevation because that.

It could.

Celebrate or could provide the better support to the better spreads for the future, but as we've mentioned in this call. It's very difficult to estimate other people's decision. So there are external consultancies that to provide the cash cost of all participated in the world, but we do not have the disclosure of any agreement.

Between suppliers and clients. So the decision of investment to close a plant. There's no decision based only on cash cost. It starts from cash cost, but there is a definition actually agreements what's the best moment to make the decision for the rationalization. So again.

Rosana Avolio: It starts from cash cost, but there is a definition at play. Agreement. What's the best moment to make the decision for the rationalization. Again, in the past 5 or 6 years, there was a different downward turn from the previous years, and there's this player that is going to include capacity up to 2030. We consider the probability plus the definition of the assumption. Again, we were very realistic, more than what we have been based on what we have been observing.

In the past five or six years, there was a different downturn.

The previous years and there are players that are good. There's this player that is going to include capacity up to 2030. So we consider the probability plus the definition of that assumption and again, we were very realistic more than what we had been at basically they don't look we have been observing.

Just to mention something else about the topic of rationalization.

Roberto Ramos: Just to mention something else about the topic of rationalization, we have some perspectives for reduction. Some have been announced, others not yet, but there's a significant reduction in South Korea, which should reach maybe even 4 billion tons. In China, the Chinese capitalist process encourages creation of various industries and allows those industries to fight for space. Once some time has elapsed, the winners remain, and the Chinese government rationalizes the winners and losers. Of course, they have a lot of capacity spinning up, and of course, there's going to be rationalization. The biggest losers are Europe. Europe has 12 million tons of ethylene production that is currently at risk. Structurally, Europe's problem is much more serious because not only do they not have the feedstocks, they don't have the ethane, they don't have the oil, so they import oil.

We have some perspectives for reduction some have been announced others not yet, but theres a significant reduction in South Korea.

Which should reach maybe even 4 billion tons in China.

The Chinese capitalist process encourages.

Creation of various industries and allows those industries to fight for space.

And then once some time has elapsed the winners remain and the Chinese government government Rationalises the winners and losers.

So.

Of course, they have a lot of capacity spinning up and of course, there's going to be rationalization and the biggest losers are Europe Europe has 12 million tons of ethylene production that is currently at risk.

Yes.

Structurally Europe's problem is much more serious because not only do they not have the feedstock. So you don't have the ethane.

Don't have the oil so the important oil yesterday refine it but they import oil and they import ethane.

Roberto Ramos: Yes, they refine it, but they import oil and they import ethane, and their energy cost is also very high as a result of the war between Russia and Ukraine, which has shut down the supply of cheap Russian gas to Europe and especially to Germany. With the energy cost in Europe, which is currently almost 3 times as high as it was before Ukraine was invaded, and also considering that the petrochemical industry is highly energy-intensive, combined with the fact that Europe doesn't produce any of these feedstocks, not even naphtha, because they don't have oil or gas, because they don't have oil reserves. Now, of course, I'm not considering Russia. This means that Europe's petrochemical industry is moving forward toward a state of de-industrialization, of total inexistence.

And their energy cost is also very high as a result of the war between Russia and Ukraine.

Has shut down the supply of cheap Russian gas to Europe and.

And especially to Germany.

So with the energy cost in Europe, which is currently three almost three times as high as it was before Ukraine was invaded and also considering that the petrochemical industry is highly energy intensive.

Bind with the fact that Europe doesn't produce any of these feedstocks not even naphtha because they don't have oil or gas because they don't have oil reserves now of course, I'm not considering Russia.

Sure.

This means that Europe's petrochemical industry is moving forward to award a state of.

D industrialization of total are in existence.

And we have.

Roberto Ramos: We have a significant amount of production capacity that is at risk during this sunset perspective.

A significant amount of production capacity that is at risk during this sunset perspective.

Thank you Rebecca.

Rosana Avolio: Thank you, Roberto. Due to time limitations, the other questions we will answer later. I would like to thank everyone for attending this call to discuss the results of the Q3 2025. I will see you next time when we for our next call. Thank you.

Due to time limitations.

The other questions. We will answer later, so we'd like to thank everyone for attending this call to discuss the results of the third quarter of 2025.

And I'll see you next time when we do.

For our next call. Thank you.

Roberto Ramos: Thank you.

Rosana Avolio: Thank you.

Thank you.

Operator: This concludes Braskem's conference call. Thank you all for joining us, and have a great afternoon.

This concludes <unk> conference call.

You all for joining us and have a great afternoon.