(Commission File No. 1-14862 )
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ______ No ___X___
To Shareholders, Members of the Board and Management
Braskem S.A.
Camaçari - Bahia
Introduction
We have reviewed the accompanying individual and consolidated interim financial information of Braskem S.A. (the “Company”) included in the Quarterly Financial Information for the quarter ended June 30, 2017, which comprises the balance sheet as of June 30, 2017, the statements of profit or loss and comprehensive income for the three and six-month period then ended, changes in equity and cash flows for the six-month period then ended, and notes to the interim financial information.
Management is responsible for the preparation and presentation of this individual interim financial information in accordance with CPC 21(R1) Technical Pronouncement - Interim Financial Reporting and the consolidated interim financial information in accordance with CPC 21(R1) and international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of this quarterly information in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission, applicable to the preparation of interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and international review standards applicable to interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) applicable to the preparation of interim financial information and presented in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission.
Conclusion on the consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, issued by the IASB, applicable to the preparation of interim financial information and presented in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission.
Emphasis of a matter
We call your attention to note 19.3, which says about the ratification of the Leniency Agreement (the “Agreement”) with the Federal Prosecution Office, the Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) of the United States of America, and with the General Prosecution Office of Switzerland, in the approximate amount of R$3.1 billion, and discloses information on progress of class action brought in the United States of America. Except for the value of the Agreement, as well as other non-monetary penalties enforced, the Company is not able, for the moment, to reliably foresee or measure the extent of financial and non-financial impacts on the Company and, accordingly, is not able to record possible additional losses that confirmation of accusations, possible lawsuits filed by other authorities and/or third-parties, and parallel investigations could cause to the Company, as well as resources required to remedy such occurrences, including possible effects deriving from the outcome of above-mentioned class action. Our opinion is not qualified in relation to this matter.
Other matters
Statements of value added
We also reviewed the individual and consolidated statements of value added for the six-month period ended June 30, 2017, prepared under the responsibility of the Company's management, whose presentation on the interim financial information is required under the standards issued by CVM - Brazilian Securities and Exchange Commission applicable to the preparation of Interim Financial Information and considered as additional information by IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added are not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.
Restatement of the corresponding values
According to mencioned in the note 2.5, as a result of the change in accounting policy in the presentation of interest paid in the Cash Flow and in the classification of the bonus provision, the interim financial information related to the statements of profit or loss for the three and six-month period and cash flows for the six-month period ended June 30, 2016, presented for comparison purposes, were adjusted and has been restated, as required in the CPC 23 - Accounting Policies, Changes in Accounting Estimates and Errors and CPC 26 (R1) - Presentation of Financial Statements. Our conclusion is not qualified in respect of this matter.
KPMG Auditores Independentes
CRC 2SP014428/O-6
Original report in Portuguese signed by
Anselmo Neves Macedo
Accountant CRC 1SP160482/O-6
Braskem S.A.
Balance sheet
at June 30, 2017
All amounts in thousands of reais
Consolidated |
Parent company | |||||||||
Assets |
Note |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | |||||
Current assets |
||||||||||
Cash and cash equivalents |
4 |
5,711,450 |
6,701,864 |
2,715,732 |
3,561,431 | |||||
Financial investments |
5 |
2,677,819 |
1,190,483 |
|
2,231,608 |
741,086 | ||||
Trade accounts receivable |
6 |
2,460,514 |
1,634,137 |
1,419,285 |
952,689 | |||||
Inventories |
7 |
5,907,679 |
5,238,014 |
3,978,654 |
3,795,899 | |||||
Taxes recoverable |
9 |
1,184,187 |
826,015 |
604,666 |
543,275 | |||||
Dividends and interest on capital |
8 |
20,729 |
14,986 |
37,165 |
31,421 | |||||
Prepaid expenses |
0 |
204,444 |
101,747 |
132,234 |
83,252 | |||||
Related parties |
8(b) |
- |
- |
16,260 |
172,344 | |||||
Derivatives operations |
15.2.1 |
- |
8,387 |
- |
8,387 | |||||
Other receivables |
311,058 |
180,915 |
247,029 |
128,231 | ||||||
|
|
|
| |||||||
18,477,880 |
15,896,548 |
11,382,633 |
10,018,015 | |||||||
Non-current assets held for sale |
3 |
- |
359,704 |
- |
263,912 | |||||
0 |
||||||||||
0 |
18,477,880 |
16,256,252 |
11,382,633 |
10,281,927 | ||||||
Non-current assets |
0 |
|||||||||
Trade accounts receivable |
6 |
62,697 |
70,236 |
3,429,639 |
2,794,889 | |||||
Advances to suppliers |
7 |
53,998 |
61,533 |
53,998 |
61,533 | |||||
Taxes recoverable |
9 |
1,148,419 |
1,088,353 |
1,050,215 |
998,039 | |||||
Deferred income tax and social contribution |
17(b.ii) |
1,026,328 |
1,653,115 |
- |
42,459 | |||||
Judicial deposits |
0 |
243,349 |
233,320 |
236,788 |
226,894 | |||||
Related parties |
8(b) |
- |
- |
14,977 |
14,472 | |||||
Insurance claims |
0 |
39,650 |
50,653 |
39,650 |
50,653 | |||||
Derivatives operations |
15.2.1 |
14,820 |
29,308 |
- |
- | |||||
Other receivables |
0 |
174,117 |
140,971 |
143,265 |
129,704 | |||||
Investments |
10(b) |
96,880 |
92,313 |
6,318,007 |
4,132,529 | |||||
Property, plant and equipment |
11 |
30,448,082 |
29,336,710 |
15,598,223 |
15,963,127 | |||||
Intangible assets |
12 |
2,785,911 |
2,809,087 |
2,505,577 |
2,521,243 | |||||
0 |
|
|
|
| ||||||
0 |
36,094,251 |
35,565,599 |
29,390,339 |
26,935,542 | ||||||
0 |
||||||||||
Total assets |
0 |
54,572,131 |
51,821,851 |
40,772,972 |
37,217,469 |
The Management notes are an integral part of the financial statements.
1
Braskem S.A. Balance sheet at June 30, 2017 All amounts in thousands of reais Continued
Consolidated |
Parent company | |||||||||
Liabilities and shareholders' equity |
Note |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | |||||
Current liabilities |
||||||||||
Trade payables |
5,257,693 |
6,545,136 |
2,048,807 |
2,056,661 | ||||||
Borrowings |
13 |
4,216,322 |
2,594,463 |
3,369,568 |
2,117,409 | |||||
Braskem Idesa borrowings |
14 |
10,195,823 |
10,437,791 |
- |
- | |||||
Derivatives operations |
15.2.1 |
41,350 |
29,042 |
22,905 |
- | |||||
Payroll and related charges |
0 |
476,967 |
562,455 |
375,579 |
431,688 | |||||
Taxes payable |
16 |
947,680 |
624,080 |
467,135 |
424,088 | |||||
Dividends |
0 |
2,560 |
3,083 |
2,560 |
3,083 | |||||
Advances from customers |
0 |
219,267 |
203,216 |
34,117 |
28,200 | |||||
Leniency agreement |
19.3 |
985,630 |
1,354,492 |
930,177 |
948,286 | |||||
Sundry provisions |
18 |
78,875 |
112,891 |
48,896 |
87,084 | |||||
Accounts payable to related parties |
8(b) |
- |
- |
963,200 |
956,609 | |||||
Other payables |
0 |
212,317 |
476,262 |
62,543 |
295,233 | |||||
0 |
|
|
|
| ||||||
0 |
22,634,484 |
22,942,911 |
8,325,487 |
7,348,341 | ||||||
0 |
||||||||||
Non-current liabilities held for sale |
3 |
- |
95,396 |
- |
- | |||||
0 |
||||||||||
0 |
22,634,484 |
23,038,307 |
8,325,487 |
7,348,341 | ||||||
Non-current liabilities |
0 |
|||||||||
Trade payables |
0 |
272,911 |
201,686 |
10,492,003 |
8,832,553 | |||||
Borrowings |
13 |
19,385,947 |
20,736,604 |
5,671,962 |
6,463,032 | |||||
Derivatives operations |
15.2.1 |
840,485 |
861,302 |
840,485 |
861,302 | |||||
Taxes payable |
16 |
40,424 |
24,097 |
39,672 |
23,830 | |||||
Accounts payable to related parties |
8(b) |
- |
- |
5,787,061 |
8,234,053 | |||||
Loan to non-controlling shareholders of Braskem Idesa |
0 |
1,679,492 |
1,620,519 |
- |
- | |||||
Deferred income tax and social contribution |
17(b.ii) |
1,025,736 |
510,523 |
540,090 |
- | |||||
Post-employment benefits |
171,318 |
162,136 |
71,899 |
71,899 | ||||||
Provision for losses on subsidiaries |
- |
- |
99,509 |
92,365 | ||||||
Advances from customers |
75,186 |
162,955 |
- |
- | ||||||
Contingencies |
19 |
1,015,882 |
985,237 |
955,926 |
926,819 | |||||
Leniency agreement |
19.3 |
1,328,714 |
1,498,738 |
1,278,087 |
1,400,224 | |||||
Sundry provisions |
18 |
207,100 |
206,245 |
170,035 |
169,499 | |||||
Other payables |
154,437 |
92,792 |
6,001 |
6,070 | ||||||
|
|
|
| |||||||
26,197,632 |
27,062,834 |
25,952,730 |
27,081,646 | |||||||
Shareholders' equity |
20 |
|||||||||
Capital |
8,043,222 |
8,043,222 |
8,043,222 |
8,043,222 | ||||||
Capital reserve |
232,430 |
232,430 |
232,430 |
232,430 | ||||||
Revenue reserves |
834,616 |
834,616 |
834,616 |
834,616 | ||||||
Other comprehensive income |
(5,526,437) |
(6,321,859) |
(5,526,437) |
(6,321,859) | ||||||
Treasury shares |
(49,819) |
(49,819) |
(927) |
(927) | ||||||
Retained earnings |
2,911,851 |
- |
2,911,851 |
- | ||||||
|
|
|
| |||||||
Total attributable to the Company's shareholders |
6,445,863 |
2,738,590 |
6,494,755 |
2,787,482 | ||||||
Non-controlling interest in Braskem Idesa |
(705,848) |
(1,017,880) |
- |
- | ||||||
5,740,015 |
1,720,710 |
6,494,755 |
2,787,482 | |||||||
Total liabilities and shareholders' equity |
54,572,131 |
51,821,851 |
40,772,972 |
37,217,469 |
The Management notes are an integral part of the financial statements.
2
Braskem S.A.
Balance sheet
at June 30, 2017
All amounts in thousands of reais
Consolidated | |||||||||||
Continued operations |
Note |
2Q2017 |
YTD2017 |
2Q2016 |
YTD2016 | ||||||
0 |
Restated |
Restated | |||||||||
Net sales revenue |
22 |
11,870,430 |
24,470,158 |
11,721,937 |
23,636,532 | ||||||
Cost of products sold |
0 |
(8,979,357) |
(17,890,990) |
(8,460,914) |
(17,074,199) | ||||||
0 |
|||||||||||
0 |
2,891,073 |
6,579,168 |
3,261,023 |
6,562,333 | |||||||
0 |
|||||||||||
Income (expenses) |
0 |
||||||||||
Selling and distribution |
0 |
(358,284) |
(704,586) |
(341,888) |
(648,644) | ||||||
General and administrative |
0 |
(311,821) |
(622,384) |
(301,368) |
(586,624) | ||||||
Research and development |
0 |
(38,483) |
(72,145) |
(40,034) |
(82,628) | ||||||
Results from equity investments |
10(c) |
10,642 |
22,851 |
11,690 |
13,377 | ||||||
Other income (expenses), net |
|
23 |
118,316 |
16,807 |
(225,882) |
(363,505) | |||||
0 |
|||||||||||
0 |
2,311,443 |
5,219,711 |
2,363,541 |
4,894,309 | |||||||
0 |
|||||||||||
Financial results |
24 |
||||||||||
Financial expenses |
0 |
(820,578) |
(1,656,087) |
(901,777) |
(1,692,159) | ||||||
Financial income |
0 |
151,550 |
316,530 |
210,261 |
375,755 | ||||||
Exchange rate variations, net |
0 |
(8,431) |
276,604 |
(1,202,296) |
(2,062,692) | ||||||
0 |
|||||||||||
0 |
(677,459) |
(1,062,953) |
(1,893,812) |
(3,379,096) | |||||||
0 |
|||||||||||
Profit before income tax and social contribution |
0 |
1,633,984 |
4,156,758 |
469,729 |
1,515,213 | ||||||
Current and deferred income tax and social contribution |
17(a) |
(491,563) |
(1,108,963) |
(202,407) |
(463,225) | ||||||
0 |
|||||||||||
Profit for the period of continued operations |
0 |
1,142,421 |
3,047,795 |
267,322 |
1,051,988 | ||||||
3 |
|||||||||||
Discontinued operations results |
0 |
||||||||||
Profit from discontinued operations |
0 |
- |
13,499 |
10,897 |
27,200 | ||||||
Current and deferred income tax and social contribution |
0 |
- |
(4,623) |
(3,512) |
(8,927) | ||||||
0 |
- |
8,876 |
7,385 |
18,273 | |||||||
0 |
|||||||||||
Profit for the period |
0 |
1,142,421 |
3,056,671 |
274,707 |
1,070,261 | ||||||
0 |
|||||||||||
Attributable to: |
0 |
||||||||||
Company's shareholders |
0 |
1,089,848 |
2,897,400 |
406,980 |
1,230,371 | ||||||
Non-controlling interest in Braskem Idesa |
0 |
52,573 |
159,271 |
(132,273) |
(160,110) | ||||||
0 |
|||||||||||
Profit for the period |
0 |
1,142,421 |
3,056,671 |
274,707 |
1,070,261 |
The Management notes are an integral part of the financial statements.
3
Braskem S.A.
Statement of operations and statement of comprehensive income at June 30, 2017 All amounts in thousands of reais |
Continued |
Parent company | |||||||||||
Continued operations |
Note |
2Q2017 |
YTD2017 |
2Q2016 |
YTD2016 | ||||||
0 |
Restated |
Restated | |||||||||
Net sales revenue |
22 |
9,113,983 |
18,321,499 |
8,744,353 |
17,765,004 | ||||||
Cost of products sold |
0 |
(7,134,868) |
(14,318,463) |
(6,614,955) |
(13,763,940) | ||||||
0 |
|||||||||||
0 |
1,979,115 |
4,003,036 |
2,129,398 |
4,001,064 | |||||||
0 |
|||||||||||
Income (expenses) |
0 |
||||||||||
Selling and distribution |
0 |
(224,638) |
(449,130) |
(228,931) |
(451,556) | ||||||
General and administrative |
0 |
(228,073) |
(427,875) |
(179,014) |
(348,932) | ||||||
Research and development |
0 |
(26,670) |
(49,961) |
(27,653) |
(50,718) | ||||||
Results from equity investments |
10(c) |
404,481 |
1,573,361 |
274,856 |
1,066,730 | ||||||
Other income (expenses), net |
|
0 |
137,122 |
43,988 |
(145,944) |
(255,641) | |||||
0 |
|||||||||||
0 |
2,041,337 |
4,693,419 |
1,822,712 |
3,960,947 | |||||||
0 |
|||||||||||
Financial results |
24 |
||||||||||
Financial expenses |
0 |
(548,302) |
(1,107,714) |
(671,932) |
(1,409,239) | ||||||
Financial income |
0 |
136,930 |
288,022 |
174,638 |
318,701 | ||||||
Exchange rate variations, net |
0 |
(198,128) |
(411,403) |
(764,560) |
(1,586,195) | ||||||
0 |
|||||||||||
0 |
(609,500) |
(1,231,095) |
(1,261,854) |
(2,676,733) | |||||||
0 |
|||||||||||
Profit before income tax and social contribution |
0 |
1,431,837 |
3,462,324 |
560,858 |
1,284,214 | ||||||
Current and deferred income tax and social contribution |
17(a) |
(341,989) |
(573,800) |
(161,263) |
(74,334) | ||||||
0 |
|||||||||||
Profit for the period of continued operations |
0 |
1,089,848 |
2,888,524 |
399,595 |
1,209,880 | ||||||
Discontinued operations results |
3 |
- |
8,876 |
7,385 |
20,491 | ||||||
0 |
|||||||||||
Profit for the period |
0 |
1,089,848 |
2,897,400 |
406,980 |
1,230,371 |
The Management notes are an integral part of the financial statements.
4
Braskem S.A.
Statement of operations and statement of comprehensive income at June 30, 2017 All amounts in thousands of reais, except earnings or loss per share |
Continued |
Consolidated | |||||||||||
Note |
2Q2017 |
YTD2017 |
2Q2016 |
YTD2016 | |||||||
Restated |
Restated | ||||||||||
Profit for the period |
1,142,421 |
3,056,671 |
274,707 |
1,070,261 | |||||||
Other comprehensive income or loss: |
|||||||||||
Items that will be reclassified subsequently to profit or loss |
|||||||||||
Fair value of cash flow hedge |
(36,411) |
51,167 |
151,913 |
179,831 | |||||||
Income tax and social contribution |
12,821 |
(15,650) |
(54,348) |
(68,307) | |||||||
Fair value of cash flow hedge from jointly-controlled |
3,168 |
3,762 |
(2,761) |
(12,765) | |||||||
(20,422) |
39,279 |
94,804 |
98,759 | ||||||||
Exchange variation of foreign sales hedge |
15.3(a.i) |
(711,317) |
(230,507) |
2,213,130 |
4,433,659 | ||||||
Sales Hedge - transfer to profit or loss |
15.3(a.i) |
249,722 |
498,962 |
345,443 |
767,243 | ||||||
Income tax and social contribution on exchange variation |
|
156,942 |
(91,275) |
(869,915) |
(1,768,307) | ||||||
Exchange variation of foreign sales hedge - Braskem Idesa |
15.3(a.ii) |
496,071 |
1,403,603 |
(914,249) |
(1,093,972) | ||||||
Sales Hedge - transfer to profit or loss - Braskem Idesa |
15.3(a.ii) |
42,992 |
73,910 |
14,297 |
14,297 | ||||||
Income tax on exchange variation - Braskem Idesa |
(161,719) |
(443,254) |
274,275 |
328,192 | |||||||
72,691 |
1,211,439 |
1,062,981 |
2,681,112 | ||||||||
Foreign subsidiaries currency translation adjustment |
10,846 |
(288,565) |
40,643 |
(23,989) | |||||||
|
|
|
| ||||||||
Total |
63,115 |
962,153 |
1,198,428 |
2,755,882 | |||||||
Total comprehensive income for the period |
1,205,536 |
4,018,824 |
1,473,135 |
3,826,143 |
The Management notes are an integral part of the financial statements.
5
Braskem S.A.
Statement of operations and statement of comprehensive income at June 30, 2017 All amounts in thousands of reais, except earnings or loss per share |
Continued |
Parent company | |||||||||||
Note |
2Q2017 |
YTD2017 |
2Q2016 |
YTD2016 | |||||||
0 |
Restated |
Restated | |||||||||
Profit for the period |
0 |
1,089,848 |
2,897,400 |
406,980 |
1,230,371 | ||||||
0 |
|||||||||||
Other comprehensive income or loss: |
0 |
||||||||||
Items that will be reclassified subsequently to profit or loss |
0 |
||||||||||
Fair value of cash flow hedge |
0 |
(47,451) |
7,494 |
219,366 |
358,953 | ||||||
Income tax and social contribution |
0 |
16,133 |
(2,548) |
(74,584) |
(122,044) | ||||||
Fair value of cash flow hedge - Braskem Idesa |
0 |
8,280 |
32,754 |
(50,590) |
(134,342) | ||||||
Income tax and social contribution |
0 |
(2,484) |
(9,826) |
15,177 |
40,303 | ||||||
Fair value of cash flow hedge from jointly-controlled |
0 |
3,168 |
3,762 |
(2,761) |
(12,765) | ||||||
0 |
(22,354) |
31,636 |
106,608 |
130,105 | |||||||
0 |
|||||||||||
Exchange variation of foreign sales hedge |
15.3(a.i) |
(711,317) |
(230,507) |
2,213,130 |
4,433,659 | ||||||
Sales Hedge - transfer to profit or loss |
15.3(a.i) |
249,722 |
498,962 |
345,443 |
767,243 | ||||||
Income tax and social contribution on exchange variation |
0 |
156,942 |
(91,275) |
(869,915) |
(1,768,307) | ||||||
Exchange variation of foreign sales hedge - Braskem Idesa |
15.3(a.ii) |
372,053 |
1,052,702 |
(685,687) |
(820,479) | ||||||
Sales Hedge - transfer to profit or loss - Braskem Idesa |
15.3(a.ii) |
32,244 |
55,432 |
10,723 |
10,723 | ||||||
Income tax on exchange variation - Braskem Idesa |
0 |
(121,289) |
(332,440) |
205,706 |
246,144 | ||||||
0 |
(21,645) |
952,874 |
1,219,400 |
2,868,983 | |||||||
0 |
|||||||||||
Foreign subsidiaries currency translation adjustment |
0 |
76,126 |
(175,118) |
(79,984) |
(215,975) | ||||||
0 |
|
|
|
| |||||||
Total |
0 |
32,127 |
809,392 |
1,246,024 |
2,783,113 | ||||||
0 |
|||||||||||
Total comprehensive income for the period |
0 |
1,121,975 |
3,706,792 |
1,653,004 |
4,013,484 |
|
|
Parent company | |||||||||
YTD2017 |
YTD2016 | ||||||||||
Note |
Basic and diluted |
Basic and diluted | |||||||||
Profit per share attributable to the shareholders of the Company |
0 |
Restated | |||||||||
of continued operations at the end of the period (R$) |
21 |
||||||||||
(expressed in reais) |
0 |
||||||||||
Earnings per share - common |
0 |
3.6309 |
1.5206 | ||||||||
Earnings per share - preferred shares class "A" |
0 |
3.6309 |
1.5206 | ||||||||
Earnings per share - preferred shares class "B" |
0 |
0.6069 |
0.6065 |
The Management notes are an integral part of the financial statements.
6
Braskem S.A.
Statement of operations and statement of comprehensive income at June 30, 2017 All amounts in thousands of reais, except earnings or loss per share |
Continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated | |||
Attributed to shareholders' interest |
|||||||||||||||||||||||
Revenue reserves |
Total |
||||||||||||||||||||||
Additional |
Other |
Retained |
Braskem |
Non-controlling |
Total | ||||||||||||||||||
Capital |
Legal |
Retention |
dividends |
comprehensive |
Treasury |
earnings |
shareholders' |
interest in |
shareholders' | ||||||||||||||
Note |
Capital |
reserve |
reserve |
of profits |
proposed |
income |
shares |
(losses) |
interest |
Braskem Idesa |
equity | ||||||||||||
0 |
|||||||||||||||||||||||
At December 31, 2015 - restated |
2.4 |
8,043,222 |
# |
232,430 |
|
229,992 |
|
2,404,663 |
|
247,364 |
|
(9,060,710) |
|
(49,819) |
|
(416,768) |
|
1,630,374 |
|
(684,885) |
|
945,489 | |
0 |
|||||||||||||||||||||||
Comprehensive income for the period: |
0 |
||||||||||||||||||||||
Profit for the period - restated |
0 |
- |
- |
- |
- |
- |
- |
- |
1,230,371 |
1,230,371 |
(160,110) |
1,070,261 | |||||||||||
Exchange variation of foreign sales hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
2,868,983 |
- |
- |
2,868,983 |
(187,871) |
2,681,112 | |||||||||||
Fair value of cash flow hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
130,105 |
- |
- |
130,105 |
(31,346) |
98,759 | |||||||||||
Foreign subsidiaries currency translation adjustment |
0 |
- |
- |
- |
- |
- |
(215,975) |
- |
- |
(215,975) |
191,986 |
(23,989) | |||||||||||
0 |
- |
- |
- |
- |
- |
2,783,113 |
- |
1,230,371 |
4,013,484 |
(187,341) |
3,826,143 | ||||||||||||
0 |
|||||||||||||||||||||||
Equity valuation adjustments: |
0 |
||||||||||||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes |
0 |
- |
- |
- |
- |
- |
(13,619) |
- |
13,619 |
- |
- |
- | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes |
0 |
- |
- |
- |
- |
- |
(482) |
- |
482 |
- |
- |
- | |||||||||||
0 |
- |
- |
- |
- |
- |
(14,101) |
- |
14,101 |
- |
- |
- | ||||||||||||
Contributions to shareholders: |
- |
||||||||||||||||||||||
Additional dividends approved by the General Meeting |
- |
- |
- |
- |
(247,364) |
- |
- |
- |
(247,364) |
- |
(247,364) | ||||||||||||
- |
- |
- |
- |
(247,364) |
- |
- |
- |
(247,364) |
- |
(247,364) | |||||||||||||
0 |
- |
||||||||||||||||||||||
At June 30, 2016 - restated |
2.4 |
8,043,222 |
232,430 |
229,992 |
2,404,663 |
- |
(6,291,698) |
(49,819) |
827,704 |
5,396,494 |
(872,226) |
4,524,268 | |||||||||||
0 |
|||||||||||||||||||||||
At December 31, 2016 |
0 |
8,043,222 |
232,430 |
229,992 |
604,624 |
- |
(6,321,859) |
(49,819) |
- |
2,738,590 |
(1,017,880) |
1,720,710 | |||||||||||
0 |
|||||||||||||||||||||||
Comprehensive income for the period: |
|||||||||||||||||||||||
Profit for the period |
0 |
- |
- |
- |
- |
- |
- |
- |
2,897,399 |
2,897,399 |
159,271 |
3,056,670 | |||||||||||
Exchange variation of foreign sales hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
952,874 |
- |
- |
952,874 |
258,565 |
1,211,439 | |||||||||||
Fair value of cash flow hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
31,636 |
- |
- |
31,636 |
7,643 |
39,279 | |||||||||||
Foreign currency translation adjustment |
0 |
- |
- |
- |
- |
- |
(175,118) |
- |
- |
(175,118) |
(113,447) |
(288,565) | |||||||||||
0 |
- |
- |
- |
- |
- |
809,392 |
- |
2,897,399 |
3,706,791 |
312,032 |
4,018,823 | ||||||||||||
0 |
|||||||||||||||||||||||
Equity valuation adjustments: |
|||||||||||||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes |
0 |
- |
- |
- |
- |
- |
(13,488) |
- |
13,488 |
- |
- |
- | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes |
0 |
- |
- |
- |
- |
- |
(482) |
- |
482 |
- |
- |
- | |||||||||||
0 |
- |
- |
- |
- |
- |
(13,970) |
- |
13,970 |
- |
- |
- | ||||||||||||
Contributions to shareholders: |
0 |
||||||||||||||||||||||
Prescribed dividends |
- |
- |
- |
- |
- |
- |
- |
482 |
482 |
- |
482 | ||||||||||||
- |
- |
- |
- |
- |
- |
- |
482 |
482 |
- |
482 | |||||||||||||
At June 30, 2017 |
0 |
8,043,222 |
232,430 |
229,992 |
604,624 |
- |
(5,526,437) |
(49,819) |
2,911,851 |
6,445,863 |
(705,848) |
5,740,015 |
The Management notes are an integral part of the financial statements.
7
Braskem S.A.
Statement of changes in shareholder’s equity
All amounts in thousands of reais
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company | |||
Revenue reserves |
|
||||||||||||||||||
Additional |
Other |
Retained |
Total | ||||||||||||||||
Capital |
Legal |
Retention |
dividends |
comprehensive |
Treasury |
earnings |
shareholders' | ||||||||||||
Note |
Capital |
reserve |
reserve |
of profits |
proposed |
income |
shares |
(losses) |
equity | ||||||||||
At December 31, 2015 - restated |
2.4 |
8,043,222 |
232,430 |
229,992 |
2,404,663 |
247,364 |
(9,060,710) |
(927) |
(416,768) |
1,679,266 | |||||||||
0 |
|||||||||||||||||||
Comprehensive income for the period: |
0 |
||||||||||||||||||
Profit for the period - restated |
0 |
- |
- |
- |
- |
- |
- |
# |
- |
1,230,371 |
1,230,371 | ||||||||
Exchange variation of foreign sales hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
2,868,983 |
- |
- |
2,868,983 | |||||||||
Fair value of cash flow hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
130,105 |
# |
- |
- |
130,105 | ||||||||
Foreign subsidiaries currency translation adjustment |
0 |
- |
- |
- |
- |
- |
(215,975) |
# |
- |
- |
(215,975) | ||||||||
0 |
- |
- |
- |
- |
- |
2,783,113 |
- |
1,230,371 |
4,013,484 | ||||||||||
0 |
# |
||||||||||||||||||
Equity valuation adjustments: |
0 |
# |
|||||||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes |
0 |
- |
- |
- |
- |
- |
(13,619) |
# |
- |
13,619 |
- | ||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes |
0 |
- |
- |
- |
- |
- |
(482) |
# |
- |
482 |
- | ||||||||
- |
- |
- |
- |
- |
(14,101) |
- |
14,101 |
- | |||||||||||
0 |
|||||||||||||||||||
Contributions to shareholders: |
|||||||||||||||||||
Additional dividends approved by the General Meeting |
- |
- |
- |
- |
(247,364) |
- |
- |
- |
(247,364) | ||||||||||
- |
- |
- |
- |
(247,364) |
- |
- |
- |
(247,364) | |||||||||||
At June 30, 2016 - restated |
2.4 |
8,043,222 |
232,430 |
229,992 |
2,404,663 |
- |
(6,291,698) |
(927) |
827,704 |
5,445,386 | |||||||||
0 |
|||||||||||||||||||
At December 31, 2016 |
0 |
8,043,222 |
232,430 |
229,992 |
604,624 |
- |
(6,321,859) |
(927) |
- |
2,787,482 | |||||||||
0 |
|||||||||||||||||||
Comprehensive income for the period: |
0 |
||||||||||||||||||
Profit for the period |
0 |
- |
- |
- |
- |
- |
- |
- |
2,897,399 |
2,897,399 | |||||||||
Exchange variation of foreign sales hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
952,874 |
- |
- |
952,874 | |||||||||
Fair value of cash flow hedge, net of taxes |
0 |
- |
- |
- |
- |
- |
31,636 |
- |
- |
31,636 | |||||||||
Foreign currency translation adjustment |
0 |
- |
- |
- |
- |
- |
(175,118) |
- |
- |
(175,118) | |||||||||
0 |
- |
- |
- |
- |
- |
809,392 |
- |
2,897,399 |
3,706,791 | ||||||||||
0 |
|||||||||||||||||||
Equity valuation adjustments: |
0 |
||||||||||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes |
0 |
- |
- |
- |
- |
- |
(13,488) |
- |
13,488 |
- | |||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes |
0 |
- |
- |
- |
- |
- |
(482) |
- |
482 |
- | |||||||||
- |
- |
- |
- |
- |
(13,970) |
# |
- |
13,970 |
- | ||||||||||
Contributions to shareholders: |
0 |
||||||||||||||||||
Prescribed dividends |
- |
- |
- |
- |
- |
- |
- |
482 |
482 | ||||||||||
- |
- |
- |
- |
- |
- |
- |
482 |
482 | |||||||||||
At June 30, 2017 |
0 |
8,043,222 |
232,430 |
229,992 |
604,624 |
- |
(5,526,437) |
(927) |
2,911,851 |
6,494,755 |
The Management notes are an integral part of the financial statements.
8
Braskem S.A.
Statement of changes in shareholder’s equity
All amounts in thousands of reais
Consolidated |
Parent company | |||||||||
Note |
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | ||||||
2.4 |
Restated |
Restated | ||||||||
Profit before income tax and social contribution and |
0 |
4,156,758 |
1,542,413 |
3,462,324 |
1,304,705 | |||||
0 |
- |
- |
- |
- | ||||||
Adjustments for reconciliation of profit |
0 |
- |
- |
- |
- | |||||
Depreciation, amortization and depletion |
0 |
1,424,202 |
1,243,975 |
921,386 |
1,030,708 | |||||
Results from equity investments |
10(c) |
(22,851) |
(13,377) |
(1,573,361) |
(1,087,221) | |||||
Interest and monetary and exchange variations, net |
0 |
1,292,218 |
931,709 |
1,282,308 |
1,029,508 | |||||
Gain from divestment in subsidiary |
3 |
(276,816) |
- |
(276,366) |
- | |||||
Provision for losses and write-offs of long-lived assets |
0 |
25,730 |
12,959 |
19,535 |
12,930 | |||||
0 |
|
|
|
| ||||||
0 |
6,599,241 |
3,717,679 |
3,835,826 |
2,290,630 | ||||||
0 |
||||||||||
Changes in operating working capital |
0 |
|||||||||
Held-for-trading financial investments |
0 |
(1,430,383) |
(466,498) |
(1,447,486) |
(960) | |||||
Trade accounts receivable |
0 |
(820,306) |
732,656 |
(1,102,601) |
502,406 | |||||
Inventories |
0 |
(663,855) |
373,946 |
(174,709) |
440,615 | |||||
Taxes recoverable |
0 |
184,040 |
686,777 |
185,809 |
459,258 | |||||
Prepaid expenses |
0 |
(102,697) |
7,922 |
(48,982) |
24,486 | |||||
Other receivables |
0 |
(46,675) |
(25,407) |
140,474 |
(253,384) | |||||
Trade payables |
0 |
(1,346,034) |
(2,364,352) |
1,521,780 |
(1,304,351) | |||||
Taxes payable |
0 |
(177,213) |
(9,815) |
(26,184) |
38,507 | |||||
Advances from customers |
0 |
(71,718) |
(47,148) |
5,917 |
(19,447) | |||||
Leniency agreement |
0 |
(607,358) |
- |
(206,460) |
- | |||||
Sundry provisions |
0 |
(2,516) |
5,043 |
(8,545) |
26,102 | |||||
Other payables |
0 |
(227,315) |
(179,173) |
(296,579) |
(208,102) | |||||
0 |
|
|
|
| ||||||
Cash from operations |
0 |
1,287,211 |
2,431,630 |
2,378,260 |
1,995,760 | |||||
0 |
||||||||||
Interest paid |
0 |
(1,024,942) |
(938,968) |
(366,823) |
(273,968) | |||||
Income tax and social contribution paid |
0 |
(602,278) |
(668,126) |
(299,376) |
(40,176) | |||||
0 |
|
|
|
| ||||||
Net cash generated by operating activities |
0 |
(340,009) |
824,536 |
1,712,061 |
1,681,616 | |||||
0 |
||||||||||
Proceeds from the sale of fixed assets |
0 |
1,468 |
114 |
1,255 |
19 | |||||
Funds received on the sale of investments |
3 |
450,000 |
- |
449,550 |
- | |||||
Acquisitions of property, plant and equipment and intangible assets |
(i) |
(755,063) |
(1,233,146) |
(501,396) |
(435,452) | |||||
Premuim in the dollar put option |
0 |
(9,771) |
- |
(9,771) |
- | |||||
Held-for-maturity financial investments |
0 |
- |
38,353 |
- |
38,353 | |||||
0 |
|
|
|
| ||||||
Net cash used in investing activities |
0 |
(313,366) |
(1,194,679) |
(60,362) |
(397,080) | |||||
0 |
||||||||||
Short-term and Long-term debit |
0 |
- |
- |
- |
- | |||||
Obtained |
0 |
1,486,963 |
1,937,284 |
1,486,963 |
1,957,182 | |||||
Payments |
0 |
(1,513,356) |
(1,865,492) |
(1,101,584) |
(1,781,594) | |||||
Braskem Idesa borrowings |
0 |
- |
- |
- |
- | |||||
Obtained funds |
0 |
187,959 |
153,126 |
- |
- | |||||
Payment of borrowings |
0 |
(448,525) |
(227,201) |
- |
- | |||||
Related parties |
0 |
- |
- |
- |
- | |||||
Obtained |
0 |
- |
- |
87,067 |
- | |||||
Payments |
0 |
- |
- |
(2,969,803) |
(2,071,978) | |||||
Dividends paid |
0 |
(41) |
(998,982) |
(41) |
(998,982) | |||||
0 |
|
|
|
| ||||||
Net cash provided by financing activities |
0 |
(287,000) |
(1,001,265) |
(2,497,398) |
(2,895,372) | |||||
0 |
||||||||||
Exchange variation on cash of foreign subsidiaries |
0 |
(50,039) |
568,780 |
- |
- | |||||
0 |
|
|
|
| ||||||
Increase (decrease) in cash and cash equivalents |
0 |
(990,414) |
(802,628) |
(845,699) |
(1,610,836) | |||||
0 |
||||||||||
Represented by |
0 |
|||||||||
Cash and cash equivalents at the beginning of the period |
0 |
6,701,864 |
7,043,262 |
3,561,431 |
4,415,764 | |||||
Cash and cash equivalents at the end of the period |
0 |
5,711,450 |
6,240,634 |
2,715,732 |
2,804,928 | |||||
0 |
|
|
|
| ||||||
Increase (decrease) in cash and cash equivalents |
0 |
(990,414) |
(802,628) |
(845,699) |
(1,610,836) |
(i) In the period ended June 30, 2016, the capitalized interest paid that was included in this item (R$252,722 Consolidated, R$33,640 Parent Company) was reclassified to “Interest paid” (Note2.5(a)).
The Management notes are an integral part of the financial statements.
9
Braskem S.A.
Statement of cash flows
at June 30, 2017
All amounts in thousands of reais
Consolidated |
Parent company | ||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | ||||||
Restated |
Restated | ||||||||
Revenue |
28,908,199 |
27,439,467 |
22,829,462 |
21,219,508 | |||||
Sale of goods, products and services |
28,643,780 |
27,589,221 |
22,605,553 |
21,351,776 | |||||
Other income (expenses), net |
261,729 |
(108,499) |
221,528 |
(93,520) | |||||
Allowance for doubtful accounts |
2,690 |
(41,255) |
2,381 |
(38,748) | |||||
Inputs acquired from third parties |
(20,198,975) |
(19,748,486) |
(16,912,801) |
(16,025,575) | |||||
Cost of products, goods and services sold |
(19,217,807) |
(18,884,716) |
(16,173,930) |
(15,433,387) | |||||
Material, energy, outsourced services and others |
(964,070) |
(859,438) |
(721,948) |
(588,183) | |||||
Impairment of assets |
(17,098) |
(4,332) |
(16,923) |
(4,005) | |||||
Gross value added |
8,709,224 |
7,690,981 |
5,916,661 |
5,193,933 | |||||
Depreciation, amortization and depletion |
(1,424,202) |
(1,243,975) |
(921,386) |
(1,030,708) | |||||
Net value added produced by the entity |
7,285,022 |
6,447,006 |
4,995,275 |
4,163,225 | |||||
Value added received in transfer |
348,282 |
389,220 |
1,870,284 |
1,405,922 | |||||
Results from equity investments |
31,727 |
13,377 |
1,582,237 |
1,087,221 | |||||
Financial income |
316,530 |
375,755 |
288,022 |
318,701 | |||||
Other |
25 |
88 |
25 |
- | |||||
Total value added to distribute |
7,633,304 |
6,836,226 |
6,865,559 |
5,569,147 | |||||
Personnel |
679,581 |
633,499 |
481,802 |
367,622 | |||||
Direct compensation |
550,942 |
501,476 |
381,901 |
276,132 | |||||
Benefits |
98,014 |
100,976 |
68,577 |
61,693 | |||||
FGTS (Government Severance Pay Fund) |
30,625 |
31,047 |
31,324 |
29,797 | |||||
Taxes, fees and contribuitions |
2,398,190 |
1,271,435 |
1,869,218 |
883,234 | |||||
Federal |
1,424,171 |
373,811 |
933,795 |
148,956 | |||||
State |
960,432 |
880,893 |
926,121 |
724,118 | |||||
Municipal |
13,587 |
16,731 |
9,302 |
10,160 | |||||
Remuneration on third parties' capital |
1,498,862 |
3,861,031 |
1,617,139 |
3,087,920 | |||||
Financial expenses (including exchange variation) |
1,370,715 |
3,736,491 |
1,512,694 |
2,987,674 | |||||
Rentals |
128,147 |
124,540 |
104,445 |
100,246 | |||||
Remuneration on own capital |
3,056,671 |
1,070,261 |
2,897,400 |
1,230,371 | |||||
Profit for the period |
2,888,524 |
1,212,098 |
2,888,524 |
1,209,880 | |||||
Non-controlling interest in Braskem Idesa |
159,271 |
(160,110) |
- |
- | |||||
Discontinued operations results |
8,876 |
18,273 |
8,876 |
20,491 | |||||
Value added distributed |
7,633,304 |
6,836,226 |
6,865,559 |
5,569,147 | |||||
The Management notes are an integral part of the financial statements.
10
Braskem S.A.
Notes to the financial statements at June 30, 2017 All amounts in thousands of reais, unless otherwise stated |
| |
1. |
Operations |
| |
Braskem S.A. (hereinafter “Parent Company”) is a public corporation headquartered in Camaçari, Bahia (“BA”), which jointly with its subsidiaries (hereinafter “Braskem” or “Company”) is controlled by Odebrecht S.A. (“Odebrecht”), which directly and indirectly holds interests of 50.11% and 38.32% in its voting and total capital, respectively. | |
| |
(a) |
Significant operating events impacting these financial statements |
| |
(i) |
In January 2017, Braskem’s new line to produce ultra-high molecular weight polyethylene (UHMWPE), known commercially as UTEC®, started operations. Located in La Porte, Texas, United States, the plant will complement the production capacity of the existing line in Brazil at the petrochemical complex in Camaçari. |
| |
(ii) |
On January 27, 2017, the Board of Directors of the Company authorized the execution of a purchase agreement with Odebrecht Utilities S.A., through which Braskem undertook to purchase all shares held by the seller in Cetrel S.A., which represent 63.7% of its voting capital, for the aggregate amount of R$610 million, to be paid upon the consummation of the transaction. The consummation of the acquisition is subject to a vote by the Shareholders' Meeting of Braskem, in accordance with Article 256 of Federal Law 6,404/76, and to the conditions precedent typical to transactions of this nature. As of the date on which the issue of these financial statements was authorized, the Meeting had not yet to be called. |
| |
The Shareholders' Meeting to deliberate the approval of this transaction was convened for August 25, 2017. | |
| |
(iii) |
On June 21, 2017, the Board of Directors approved the construction of a new polypropylene production facility in the city of La Porte, Texas, in the United States. The approximate amount is up to US$675 million to the production of 450 thousand tons per year. Completion of this project is planned for 2020. |
| |
(b) |
Net working capital |
| |
On June 30, 2017, consolidated net working capital was negative R$4,156,604. This situation, however, does not reflect the Company’s actual liquidity position. Note that, without the reclassification mentioned in the paragraph below, consolidated net working capital is positive at R$5,030,520 . | |
| |
In compliance with CPC 26 and its corresponding accounting standard IAS 1 (Presentation of Financial Statements), Braskem and its subsidiary Braskem Idesa, reclassified to current liabilities financial obligations originally maturing in the long term. These obligations include restrictive contractual clauses (covenants) that at the base date of this quarterly information, were in default (Notes 13 (a) and 14). The disclosure of the audited financial statements for 2016 determines the cure of the obligations mentioned in Note 13(a), which results in the return to noncurrent liabilities of the amount of R$40,481. | |
Note that Braskem and Braskem Idesa has been settling these obligations in accordance with their original maturity schedule. | |
2. |
Summary of significant accounting policies |
There were no changes in the accounting practices used in the preparation of the Quarterly Information in relation to those presented in the December 31, 2016 financial statements. |
Braskem S.A.
Notes to the financial statements at June 30, 2017 All amounts in thousands of reais, unless otherwise stated |
2.1. | Basis of preparation |
This “Quarterly Information” includes the six-month period ended June 30, 2017 and should be read together with the financial statements of Braskem as of December 31, 2016, which were prepared and presented (i) in the Consolidated, in accordance with accounting practices adopted in Brazil, including the pronouncements issued by the Brazilian Accounting Pronouncements Committee (“CPCs”), and in accordance with the International Financial Reporting Standards (IFRS) issued by the IASB (International Accounting Standards Board) and (ii) in the Parent company, in accordance with accounting practices adopted in Brazil, in compliance with the Law 6,404/76 and subsequent adjustments and the standards issued by the CPC.. | |
The preparation of the Quarterly Information requires the use of certain critical accounting estimates. It also requires the Management of the Company to exercise its judgment in the process of applying its accounting policies. | |
There were no significant changes in the assumptions and judgments made by the Company’s management in the use of estimates for the preparation of the Quarterly Information in relation to those used in the December 31, 2016 financial statements. | |
Issue of these Quarterly Information was authorized by the Executive Board on August 14, 2017. | |
2.1.1 | Consolidated and parent company quarterly information |
The consolidated Quarterly Information was prepared and is being presented in accordance with the pronouncements CPC 21 and IAS 34 - Interim Financial Reporting, which establish the minimum content for interim financial statements. The parent company information was prepared and is being presented in accordance with CPC pronouncement. | |
| |
All relevant information pertaining exclusively to these interim financial statements is presented herein and corresponds to the information used by the Management of the Company. |
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
2.1.2 Consolidated quarterly information
The consolidated Quarterly Information includes the quarterly information of the Parent Company and companies in which it, directly or indirectly, maintains a controlling equity interest or controls the activities, as presented below:
Total and voting interest - % | |||||||||
Headquarters |
Jun/2017 |
Dec/2016 | |||||||
Direct and Indirect subsidiaries |
|||||||||
Braskem America Finance Company ("Braskem America Finance") |
EUA |
100.00 |
100.00 | ||||||
Braskem America, Inc. (“Braskem America”) |
EUA |
100.00 |
100.00 | ||||||
Braskem Argentina S.A. (“Braskem Argentina”) |
Argentina |
100.00 |
100.00 | ||||||
Braskem International GmbH ("Braskem Austria") |
(i) |
Austria |
100.00 |
100.00 | |||||
Braskem Europe GmbH ("Braskem Alemanha") |
Germany |
100.00 |
100.00 | ||||||
Braskem Finance Limited (“Braskem Finance”) |
Cayman Islands |
100.00 |
100.00 | ||||||
Braskem Idesa S.A.P.I. ("Braskem Idesa") |
Mexico |
75.00 |
75.00 | ||||||
Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") |
Mexico |
75.00 |
75.00 | ||||||
Braskem Incorporated Limited ("Braskem Inc") |
Cayman Islands |
100.00 |
100.00 | ||||||
Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") |
Mexico |
100.00 |
100.00 | ||||||
Braskem Mexico, S. de RL de CV ("Braskem México") |
Mexico |
100.00 |
100.00 | ||||||
Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") |
Mexico |
100.00 |
100.00 | ||||||
Braskem Netherlands B.V. ("Braskem Holanda") |
Netherlands |
100.00 |
100.00 | ||||||
Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) |
Netherlands |
100.00 |
100.00 | ||||||
Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) |
Netherlands |
100.00 |
100.00 | ||||||
Braskem Petroquímica Chile Ltda. (“Braskem Chile”) |
Chile |
100.00 |
100.00 | ||||||
Braskem Petroquímica Ltda. ("Braskem Petroquímica") |
Brazil |
100.00 |
100.00 | ||||||
Lantana Trading Co. Inc. (“Lantana”) |
Bahamas |
100.00 |
100.00 | ||||||
- |
- | ||||||||
Specific Purpose Entity ("SPE") |
- |
- | |||||||
Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) |
Brazil |
100.00 |
100.00 | ||||||
Fundo de Investimento Caixa Júpiter Multimercado |
|
|
Brazil |
100.00 |
100.00 | ||||
|
|
|
|
|
|||||
(i) |
In process of extinction. |
13
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
2.2. Foreign and functional currency
The information on functional and foreign currency was presented in the 2016 annual financial statements of the Company, in Note 2.2.
Exchange variation effects
The main effects from exchange variation in this Quarterly Information are shown below:
Final rate |
Average rate for period ended | ||||||||||
Jun/2017 |
Dec/2016 |
Variation |
Jun/2017 |
Jun/2017 |
Variation | ||||||
U.S. dollar - Brazilizan real |
3.3082 |
3.2591 |
1.51% |
3.1807 |
3.7017 |
-14.08% | |||||
U.S. dollar - Mexican peso |
18.0820 |
20.6352 |
-12.37% |
19.4478 |
18.0712 |
7.62% | |||||
U.S. dollar - Euro |
0.8763 |
0.9479 |
-7.54% |
0.9239 |
0.8957 |
3.14% |
2.3. Reconciliation of equity and profit (loss) for the period between Parent Company and consolidated
Shareholders' equity |
Profit for the period | |||||||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | |||||||
|
| |||||||||
Parent company |
6,494,755 |
2,787,482 |
2,897,400 |
1,230,371 | ||||||
Braskem shares owned by subsidiary Braskem Petroquímica |
(48,892) |
(48,892) |
- |
- | ||||||
Non-controlling interest of Braskem Idesa |
(705,848) |
(1,017,880) |
159,271 |
(160,110) | ||||||
Consolidated |
5,740,015 |
1,720,710 |
3,056,671 |
1,070,261 |
2.4. Restatement
The statements of operations and of cash flows for the period ended June 30, 2016 and the starting balance of equity in December 2015 were restated due to the adjustment of taxes recognized from prior periods and other prior-year adjustments. The information related to this restatement was reported in the 2016 annual financial statements of the Company, in Note 2.4. The effect on the first quarter result corresponding to the update by the SELIC, recorded under "Financial expenses", was R$5,805.
Additionally, the statement of cash flows for the period ended June 30, 2016 was restated due to the reclassification of Brazilian government bonds from “cash and cash equivalents” to “financial investments” (Note 5).
2.5. Change in accounting policy
(a) The Management of Braskem decided to change, in the statement of cash flows, the presentation of interest paid, which previously was presented under the group referred to as “cash used in investment activities.” These expenses are now recorded under the item “interest paid.” This change enables: (i) the direct identification of the total amount paid as interest; and (ii) greater accuracy in determining the net cash from operations. The amounts reclassified in the period ended June 30, 2016 were R$252,722 and R$33,640 in the consolidated and Parent Company cash flows, respectively.
(b) In 2017, the Company changed the classification of provision for profit sharing to standardize such classification among all companies, whether or not productive, and because it deemed the current classification more appropriate, since this provision does not present recurring elements or, even when recurring, the amounts differ from year to year.
14
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
In the period ended June 30, 2016, the consolidated amounts related to this item were reclassified from “costs of goods sold” (R$83,363), “selling and distribution expenses” (R$3,994) and “general and administrative expenses” (R$96,515) to the item “other net income (expenses)” (Note 23).
3. Available-for-sale assets and discontinued operations
On January 9, 2017, the Board of Directors approved the sale of the subsidiaries Quantiq Distribuidora Ltda and IQAG Armazens Gerais Ltda to the company GTM do Brasil Comércio de Produtos Químicos Ltda. The sale agreement, in the amount of R$550 million, was signed on the following day, and in January the operation was approved by Brazil’s antitrust agency CADE (Conselho Administrativo de Defesa Econômica). The transfer of control to the buyer company was concluded on April 3, 2017. On the same date, Braskem received R$450 million. The remaining R$100 million will be received within 12 months, subject to adjustments typical to operations of this nature. The capital gain from the operation was R$276,816 (Total income of R$550,000 (-) net assets of R$273,184) registered in this quarter.
Assets and liabilities classified as held for sale and profit or loss from discontinued operations until the date of transfer of control are shown below:
Assets and liabilities classified as held for sale |
Mar/2017 |
Dec/2016 | ||||
Assets |
||||||
Cash and cash equivalents |
40,216 |
76,146 | ||||
Trade accounts receivable |
119,076 |
65,626 | ||||
Inventories |
82,815 |
84,296 | ||||
Taxes recoverable |
46,858 |
45,859 | ||||
Property, plant and equipment |
61,591 |
61,037 | ||||
Intangible assets |
6,729 |
6,665 | ||||
Other assets |
17,932 |
20,075 | ||||
Total assets |
375,217 |
359,704 | ||||
Liabilities |
||||||
Trade payables |
75,852 |
62,692 | ||||
Payroll and related charges |
7,099 |
11,170 | ||||
Dividends |
6,371 |
6,371 | ||||
Taxes payable |
9,668 |
7,064 | ||||
Other payables |
3,043 |
8,099 | ||||
Total liabilities |
102,033 |
95,396 | ||||
Net assets (Assets (-) Liabilities) |
273,184 |
264,308 |
15
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
Result with discontinued operations |
Mar/2017 |
Dec/2016 | ||||
Net sales revenue |
212,238 |
211,915 | ||||
Cost of products sold and services provided |
(176,957) |
(169,739) | ||||
Gross profit |
35,281 |
42,176 | ||||
Income (expenses) |
||||||
Selling and distribution |
(10,164) |
(11,617) | ||||
General and administrative |
(12,067) |
(20,021) | ||||
Other income (expenses), net |
(1,298) |
1,691 | ||||
Operating profit |
11,752 |
12,229 | ||||
Financial results |
1,747 |
4,074 | ||||
Profit before income tax and social contribution |
13,499 |
16,303 | ||||
Current and deferred income tax and social contribution |
(4,623) |
(5,415) | ||||
Result with discontinued operations |
8,876 |
10,888 |
4. Cash and cash equivalents
The information on cash and cash equivalents was presented in the 2016 annual financial statements of the Company, in Note 6.
Consolidated | |||||||
Jun/2017 |
Dec/2016 | ||||||
| |||||||
Cash and banks |
(i) |
2,567,561 |
2,178,611 | ||||
Cash equivalents: |
- |
- |
- | ||||
Domestic market |
- |
1,743,939 |
2,914,685 | ||||
Foreign market |
(i) |
1,399,950 |
1,608,568 | ||||
Total |
5,711,450 |
6,701,864 |
(i) On June 30, 2017, it includes cash and banks of R$243,796 (R$172,390 on December 31, 2016) and cash equivalents of R$49,996 (R$29,169 on December 31, 2016) of the subsidiary Braskem Idesa, available for its exclusive use.
16
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
5. Financial investments
The information on financial investments was presented in the 2016 annual financial statements of the Company, in Note 7.
Consolidated | ||||||
Jun/2017 |
Dec/2016 | |||||
Loans and receivables |
||||||
Time deposit investments |
(i) |
440,568 |
434,015 | |||
Held-for-trading |
0 |
- |
- | |||
Letras financeiras do tesouro - LFT |
(ii) |
2,236,755 |
755,712 | |||
Other |
0 |
496 |
756 | |||
Total |
0 |
2,677,819 |
1,190,483 | |||
0 |
||||||
Current assets |
0 |
2,677,819 |
1,190,483 | |||
Total |
0 |
2,677,819 |
1,190,483 |
(i) This investment was given as guarantee to cover Braskem’s obligation related to the constitution of a reserve account for the Project finance of the subsidiary Braskem Idesa.
(ii) Government bonds held-for-trading refers to Brazilian floating-rate government bonds (“LFTs”) issued by the Brazilian federal government and Financial Bills ("LF's") are issued by financial institutions. These financial investments have maturity above three months, immediate liquidity and expected realization in the short term.
6. Trade accounts receivable
The information on trade accounts receivable was presented in the 2016 annual financial statements of the Company, in Note 8.
Consolidated |
Parent Company | ||||||||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | ||||||||
Customers |
|||||||||||
Domestic market |
1,029,501 |
869,306 |
1,159,607 |
969,072 | |||||||
Foreign market |
1,871,579 |
1,215,626 |
4,045,814 |
3,137,384 | |||||||
Allowance for doubtful accounts |
(377,869) |
(380,559) |
(356,497) |
(358,878) | |||||||
Total |
2,523,211 |
1,704,373 |
4,848,924 |
3,747,578 | |||||||
Current assets |
2,460,514 |
1,634,137 |
1,419,285 |
952,689 | |||||||
Non-current assets |
62,697 |
70,236 |
3,429,639 |
2,794,889 | |||||||
Total |
2,523,211 |
1,704,373 |
4,848,924 |
3,747,578 |
17
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
7. Inventories
The information on inventories was presented in the 2016 annual financial statements of the Company, in Note 9.
Consolidated |
Parent company | ||||||||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | ||||||||
Finished goods |
- |
3,789,850 |
3,444,898 |
2,384,193 |
2,314,755 | ||||||
Raw materials, production inputs and packaging |
- |
1,376,142 |
1,407,399 |
1,203,870 |
1,266,323 | ||||||
Maintenance materials |
- |
359,627 |
312,167 |
167,705 |
162,568 | ||||||
Advances to suppliers |
409,468 |
103,267 |
257,372 |
82,618 | |||||||
Imports in transit and other |
- |
26,590 |
31,816 |
19,512 |
31,168 | ||||||
Total |
5,961,677 |
5,299,547 |
4,032,652 |
3,857,432 | |||||||
Current assets |
- |
5,907,679 |
5,238,014 |
3,978,654 |
3,795,899 | ||||||
Non-current assets |
- |
53,998 |
61,533 |
53,998 |
61,533 | ||||||
Total |
5,961,677 |
5,299,547 |
4,032,652 |
3,857,432 |
18
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
8. Related parties
The information concerning related parties was presented in the 2016 annual financial statements of the Company, in Note 10.
(a) Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated | ||||
|
|
|
|
Balances at June 30, 2017 |
|
|
|
|
Balances at December 31, 2016 | |||||||||
Associated companies, Jointly-controlled investment and Related companies |
Associated companies, Jointly-controlled investment and Related companies | |||||||||||||||||
Odebrecht and |
Petrobras and |
Odebrecht and |
Petrobras and |
|||||||||||||||
Balance sheet |
subsidiaries |
subsidiaries |
Other |
Total |
subsidiaries |
subsidiaries |
Other |
Total | ||||||||||
Assets |
||||||||||||||||||
Current |
||||||||||||||||||
Trade accounts receivable |
7,381 |
20,494 |
31,116 |
58,991 |
5,634 |
33,843 |
28,390 |
67,867 | ||||||||||
Inventories |
155,507 |
8(c.iv) |
37,625 |
- |
193,132 |
- |
5,434 |
- |
5,434 | |||||||||
Dividends and interest on capital |
- |
- |
20,729 |
20,729 |
- |
- |
14,986 |
14,986 | ||||||||||
Other |
42 |
- |
- |
42 |
50 |
- |
- |
50 | ||||||||||
Total assets |
162,930 |
58,119 |
51,845 |
272,894 |
5,684 |
39,277 |
43,376 |
88,337 | ||||||||||
Liabilities |
||||||||||||||||||
Current |
- |
- |
- |
- |
- |
- |
||||||||||||
Trade payables |
42,704 |
478,921 |
333 |
521,958 |
77,461 |
904,090 |
1,226 |
982,777 | ||||||||||
Total liabilities |
42,704 |
478,921 |
333 |
521,958 |
77,461 |
904,090 |
1,226 |
982,777 | ||||||||||
|
|
Six-month period ended June 30, 2017 |
|
|
|
|
Six-month period ended June 30, 2016 | |||||||||||
Associated companies, Jointly-controlled investment and Related companies |
Associated companies, Jointly-controlled investment and Related companies | |||||||||||||||||
Odebrecht and |
Petrobras and |
Odebrecht and |
Petrobras and |
|||||||||||||||
subsidiaries |
subsidiaries |
Other |
Total |
subsidiaries |
subsidiaries |
Other |
Total | |||||||||||
Transactions |
||||||||||||||||||
Sales of products |
25,008 |
833,004 |
323,616 |
1,181,628 |
30,707 |
1,009,837 |
275,852 |
1,316,396 | ||||||||||
Purchases of raw materials, finished goods |
- |
- | ||||||||||||||||
services and utilities |
403,618 |
(i) |
6,691,063 |
2,657 |
7,097,338 |
859,246 |
(i) |
5,826,466 |
39,933 |
6,725,645 | ||||||||
Financial income (expenses) |
4,929 |
(36,110) |
- |
(31,181) |
160 |
(104,399) |
- |
(104,239) | ||||||||||
General and administrative expenses |
- |
- | ||||||||||||||||
Post-employment benefits plan |
- |
- | ||||||||||||||||
Odebrecht Previdência Privada ("Odeprev") |
- |
- |
11,026 |
|
11,026 |
|
- |
- |
10,054 |
|
(i) Includes expenses with the Braskem Idesa project, of which R$62,584 related to the period ended June 30, 2017, and R$539,096 related to the period ended June 30, 2016.
19
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b) Parent Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at June 30, 2017 | |||||
Associated companies, Jointly-controlled investment and associated companies |
Related companies |
EPE |
| ||||||||||||||||||||
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Odebrecht and |
Petrobras and |
||||||||||||||||
Balance sheet |
Inc. |
Holanda |
Holanda Inc |
Petroquímica |
America |
Argentina |
Other |
subsidiaries |
subsidiaries |
FIM Júpiter |
Total | ||||||||||||
Assets |
|||||||||||||||||||||||
Current |
|||||||||||||||||||||||
Cash and equivalents |
- |
- |
- |
- |
- |
- |
- |
- |
- |
3,834,221 |
3,834,221 | ||||||||||||
Trade accounts receivable |
- |
516 |
- |
141,835 |
44,242 |
98,140 |
81,130 |
7,381 |
18,986 |
- |
392,230 | ||||||||||||
Inventories |
- |
- |
- |
- |
- |
- |
- |
155,507 |
8(c.iv) |
37,625 |
- |
193,132 | |||||||||||
Dividends and interest on capital |
- |
- |
- |
16,436 |
- |
- |
20,729 |
- |
- |
- |
37,165 | ||||||||||||
Related parties |
- |
21 |
- |
158 |
1,372 |
6 |
14,661 |
42 |
- |
- |
16,260 | ||||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||||
Non-current |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Trade accounts receivable |
2,561,084 |
810,492 |
- |
- |
- |
- |
- |
- |
- |
- |
3,371,576 | ||||||||||||
Related parties |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Loan agreements |
14,881 |
- |
- |
- |
- |
- |
96 |
- |
- |
- |
14,977 | ||||||||||||
Total assets |
2,575,965 |
811,029 |
- |
158,429 |
45,614 |
98,146 |
116,616 |
162,930 |
56,611 |
3,834,221 |
7,859,561 | ||||||||||||
Liabilities |
|||||||||||||||||||||||
Current |
|||||||||||||||||||||||
Trade payables |
24 |
1 |
- |
841,416 |
15 |
- |
365 |
20,535 |
448,181 |
- |
1,310,537 | ||||||||||||
Accounts payable to related parties |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Advance to export |
- |
- |
61,368 |
- |
680,079 |
- |
- |
- |
- |
- |
741,447 | ||||||||||||
Other payables |
- |
- |
- |
221,700 |
53 |
- |
- |
- |
- |
- |
221,753 | ||||||||||||
- | |||||||||||||||||||||||
Non-current |
- | ||||||||||||||||||||||
Trade Payables |
1,215,551 |
9,023,157 |
- |
- |
- |
- |
- |
- |
- |
- |
10,238,708 | ||||||||||||
Accounts payable to related parties |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Advance to export |
- |
- |
5,499,777 |
- |
274,580 |
- |
- |
- |
- |
- |
5,774,357 | ||||||||||||
Payable notes |
12,704 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
12,704 | ||||||||||||
Total liabilities |
1,228,279 |
9,023,158 |
5,561,145 |
1,063,116 |
954,727 |
- |
365 |
20,535 |
448,181 |
- |
18,299,506 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-month period ended June 30, 2017 | |||||
Associated companies, Jointly-controlled investment and associated companies |
|
|
|
|
Related companies |
| |||||||||||||||||
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Odebrecht and |
Petrobras and |
||||||||||||||||
Inc |
Holanda |
Holanda Inc |
Petroquímica |
America |
Argentina |
Other |
subsidiaries |
subsidiaries |
Other |
Total | |||||||||||||
Transactions |
|||||||||||||||||||||||
Sales of products |
- |
2,012,852 |
- |
1,313,882 |
62,287 |
145,145 |
367,343 |
25,008 |
817,097 |
- |
4,743,614 | ||||||||||||
Purchases of raw materials, finished products |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
services and utilities |
- |
3,456,409 |
- |
1,593,216 |
- |
- |
2,808 |
333,451 |
6,076,985 |
- |
11,462,869 | ||||||||||||
Financial income (expenses) |
34,155 |
(144,980) |
(407,808) |
25 |
(34,215) |
1,032 |
207 |
2,012 |
(36,109) |
- |
(585,681) | ||||||||||||
General and administrative expenses - Odeprev |
- |
- |
- |
- |
- |
- |
- |
- |
- |
10,533 |
10,533 |
20
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
|
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|
|
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|
|
Balances at December 31, 2016 | ||
Associated companies, Jointly-controlled investment and associated companies |
Related companies |
EPE |
| |||||||||||||||||||
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Odebrecht and |
Petrobras and |
FIM Sol e |
||||||||||||||
Balance sheet |
Inc. |
Holanda |
Holanda Inc |
Petroquímica |
America |
Argentina |
Other |
subsidiaries |
subsidiaries |
FIM Júpiter |
Total | |||||||||||
Assets |
||||||||||||||||||||||
Current |
||||||||||||||||||||||
Cash and equivalents |
- |
- |
- |
- |
- |
- |
- |
- |
- |
2,668,701 |
2,668,701 | |||||||||||
Trade accounts receivable |
- |
189 |
- |
2,223 |
24,212 |
97,060 |
95,583 |
5,634 |
32,152 |
- |
257,053 | |||||||||||
Inventories |
- |
- |
- |
- |
- |
- |
- |
- |
5,434 |
- |
5,434 | |||||||||||
Dividends and interest on capital |
- |
- |
- |
16,435 |
- |
- |
14,986 |
- |
- |
- |
31,421 | |||||||||||
Related parties |
- |
20 |
- |
104,471 |
50,802 |
24 |
16,977 |
50 |
- |
- |
172,344 | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Non-current |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Trade accounts receivable |
2,523,072 |
112,330 |
- |
88,615 |
- |
- |
- |
- |
- |
- |
2,724,017 | |||||||||||
Related parties |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Loan agreements |
14,378 |
- |
- |
- |
- |
- |
94 |
- |
- |
- |
14,472 | |||||||||||
Total assets |
2,537,450 |
112,539 |
- |
211,744 |
75,014 |
97,084 |
127,640 |
5,684 |
37,586 |
2,668,701 |
5,873,442 | |||||||||||
Liabilities |
||||||||||||||||||||||
Current |
||||||||||||||||||||||
Trade payables |
25 |
- |
- |
- |
15 |
- |
- |
34,682 |
886,775 |
- |
921,497 | |||||||||||
Accounts payable to related parties |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Advance to export |
- |
- |
97,165 |
- |
670,325 |
- |
- |
- |
- |
- |
767,490 | |||||||||||
Other payables |
- |
- |
- |
189,106 |
- |
- |
13 |
- |
- |
- |
189,119 | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Non-current |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Trade Payables |
1,527,820 |
6,351,905 |
- |
918,038 |
- |
- |
- |
- |
- |
- |
8,797,763 | |||||||||||
Accounts payable to related parties |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Advance to export |
- |
- |
7,951,033 |
- |
270,505 |
- |
- |
- |
- |
- |
8,221,538 | |||||||||||
Payable notes |
12,515 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
12,515 | |||||||||||
Total liabilities |
1,540,360 |
6,351,905 |
8,048,198 |
1,107,144 |
940,845 |
- |
13 |
34,682 |
886,775 |
- |
18,909,922 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-month period ended June 30, 2016 | ||||
Associated companies, Jointly-controlled investment and associated companies |
|
|
|
|
Related companies |
| ||||||||||||||||
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Braskem |
Odebrecht and |
Petrobras and |
|||||||||||||||
Inc |
Holanda |
Holanda Inc |
Petroquímica |
America |
Argentina |
Other |
subsidiaries |
subsidiaries |
Other |
Total | ||||||||||||
Transactions |
||||||||||||||||||||||
Sales of products |
83,183 |
1,349,464 |
- |
1,062,344 |
110,880 |
149,750 |
441,939 |
30,437 |
987,501 |
- |
4,215,498 | |||||||||||
Purchases of raw materials, finished products |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
services and utilities |
160,378 |
2,308,173 |
- |
2,107,124 |
- |
- |
45,590 |
311,394 |
5,348,381 |
- |
10,281,040 | |||||||||||
Financial income (expenses) |
(399,819) |
520,893 |
1,859,698 |
(3) |
148,617 |
(30,941) |
(11,875) |
164 |
(104,399) |
- |
1,982,335 | |||||||||||
General and administrative expenses - Odeprev |
- |
- |
- |
- |
- |
- |
- |
- |
- |
9,378 |
9,378 |
21
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(c) Agreements executed and/or renewed with related companies
In the period ended June 30, 2017, the following agreements were signed with related companies, except for those with subsidiaries of the Company:
(i) Sales of gasoil to Refinaria de Petróleo Riograndense (“RPR”) totaled R$26,077. The product is used as feedstock in the diesel production process.
(ii) As from January 2017, Braskem will maintain monthly negotiations for the sale of gasoline to RPR. Sales in the period amounted to R$171,733.
(iii) Since January 2017, Braskem has held agreements for the sale of gasoline to Petrobras Distribuidora S.A., which are renewed monthly. Sales in the period amounted to R$443,665.
(iv) In March 2017, the Company entered into an agreement for supply of hydrous ethanol with Usina Conquista do Pontal S.A. and Agro Energia Santa Luzia S.A. Ethanol is the feedstock consumed by Braskem to produce green ethylene. The agreement is guaranteed by Odebrecht Agroindustrial Participações S.A. and Rio Claro Agroindustrial S.A.. The agreement also provides for a commercial discount and other flexibilities in the process of Braskem’s acquisition of the product. It also includes an advance of R$150,000, to be restated at market rates. The advance is guaranteed by a pledge of the sugarcane crop, its products and subproducts at net market value in an amount greater than the value of the advance, with the pledged asset insured through a policy contracted from a premium insurer and with a provision for subrogation. The agreement is valid through April 30, 2018.
(d) Key management personnel
Consolidated | ||||
Income statement transactions |
Jun/2017 |
Jun/2016 | ||
Remuneration |
||||
Short-term benefits |
25,873 |
16,065 | ||
Post-employment benefit |
219 |
174 | ||
Total |
26,092 |
16,239 |
22
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
9. Taxes recoverable
The information on taxes recoverable was presented in the 2016 annual financial statements of the Company, in Note 11.
Consolidated |
Parent Company | ||||||||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | ||||||||
Parent Company and subsidiaries in Brazil |
|||||||||||
IPI |
26,525 |
38,909 |
24,392 |
37,859 | |||||||
Value-added tax on sales and services (ICMS) - normal operations |
523,473 |
495,339 |
441,579 |
420,625 | |||||||
ICMS - credits from PP&E |
126,132 |
125,145 |
119,355 |
118,984 | |||||||
Social integration program (PIS) and social contribution on revenue |
26,740 |
32,823 |
23,492 |
28,386 | |||||||
PIS and COFINS - credits from PP&E |
246,208 |
253,503 |
235,438 |
242,475 | |||||||
Income tax and social contribution (IR and CSL) |
658,765 |
605,058 |
585,008 |
487,079 | |||||||
REINTEGRA program |
66,618 |
53,129 |
62,145 |
51,414 | |||||||
Federal supervenience |
161,494 |
155,533 |
157,358 |
151,798 | |||||||
Other |
8,808 |
1,046 |
6,114 |
2,694 | |||||||
- |
- |
- |
- | ||||||||
Foreign subsidiaries |
- |
- |
- |
- | |||||||
Value-added tax |
249,219 |
132,152 |
- |
- | |||||||
Income tax (IR) |
233,125 |
19,103 |
- |
- | |||||||
Other |
5,499 |
2,628 |
- |
- | |||||||
Total |
2,332,606 |
1,914,368 |
1,654,881 |
1,541,314 | |||||||
Current assets |
1,184,187 |
826,015 |
604,666 |
543,275 | |||||||
Non-current assets |
1,148,419 |
1,088,353 |
1,050,215 |
998,039 | |||||||
Total |
2,332,606 |
1,914,368 |
1,654,881 |
1,541,314 |
23
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
10. Investments
The information related to investments was presented in the Company’s 2016 annual financial statements, in Note 12.
(a) Information on investments
Interest |
||||||||||||||
in total and voting |
Adjusted net profit (loss) |
Adjusted | ||||||||||||
capital (%) - 6/30/2017 |
for the year |
equity | ||||||||||||
Direct and indirect |
Jun/2017 |
Jun/2016 |
Jun/2017 |
Dec/2016 | ||||||||||
Subsidiaries |
||||||||||||||
Braskem Alemanha |
# |
100.00 |
464,212 |
974,099 |
3,435,609 |
2,883,238 | ||||||||
Braskem America |
# |
100.00 |
425,256 |
795,115 |
3,084,043 |
2,582,061 | ||||||||
Braskem America Finance |
# |
100.00 |
334 |
210 |
(6,335) |
(6,573) | ||||||||
Braskem Argentina |
# |
100.00 |
6,511 |
1,495 |
30,601 |
24,090 | ||||||||
Braskem Austria |
# |
100.00 |
(201) |
(96) |
4,362 |
4,170 | ||||||||
Braskem Chile |
# |
100.00 |
1,929 |
888 |
16,615 |
14,685 | ||||||||
Braskem Holanda |
# |
100.00 |
1,419,289 |
885,846 |
3,331,438 |
1,320,056 | ||||||||
Braskem Holanda Finance |
# |
100.00 |
(6) |
(10) |
(32) |
(25) | ||||||||
Braskem Holanda Inc |
# |
100.00 |
869 |
1,221 |
3,088 |
2,150 | ||||||||
Braskem Finance |
# |
100.00 |
(7,143) |
52,426 |
(99,509) |
(92,365) | ||||||||
Braskem Idesa |
# |
75.00 |
637,085 |
(640,440) |
(2,823,392) |
(4,071,517) | ||||||||
Braskem Idesa Serviços |
# |
75.00 |
33,111 |
1,891 |
91,597 |
9,241 | ||||||||
Braskem Inc. |
# |
100.00 |
(24,691) |
(66,242) |
259,218 |
283,909 | ||||||||
Braskem México |
# |
100.00 |
(19,804) |
17,616 |
179,811 |
173,590 | ||||||||
Braskem México Sofom |
# |
100.00 |
2,319 |
1,842 |
11,873 |
8,667 | ||||||||
Braskem México Serviços |
# |
100.00 |
1,350 |
371 |
3,582 |
1,952 | ||||||||
Braskem Petroquímica |
# |
100.00 |
96,417 |
127,598 |
2,178,318 |
2,081,901 | ||||||||
Lantana |
# |
100.00 |
(13) |
187 |
(888) |
(874) | ||||||||
# |
- |
- |
- |
- |
- | |||||||||
Jointly-controlled investment |
# |
- |
- |
- |
- |
- | ||||||||
RPR |
# |
33.20 |
52,868 |
36,931 |
179,547 |
175,896 | ||||||||
Odebrecht Comercializadora de Energia S.A. ("OCE") |
# |
20.00 |
74 |
(207) |
5,796 |
5,721 | ||||||||
# |
- |
- |
- |
- |
- | |||||||||
Associates |
# |
- |
- |
- |
- |
- | ||||||||
Borealis |
# |
20.00 |
12,082 |
796 |
179,927 |
162,629 |
24
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b) Changes in investments – Parent Company
Subsidiaries and jointly-controlled investment |
||||||||
Domestic subsidiaries |
Foreign subsidiaries |
Domestic associate |
Total | |||||
Balance at December 31, 2016 |
2,191,179 |
1,908,823 |
32,527 |
4,132,529 | ||||
Equity of investments |
- |
- |
- |
- | ||||
Effect of results |
113,986 |
1,409,307 |
5,252 |
1,528,545 | ||||
Adjustment of profit in inventories |
4,715 |
61,343 |
- |
66,058 | ||||
Goodwill amortization |
(14,497) |
- |
- |
(14,497) | ||||
Equity valuation adjustments |
3,762 |
798,622 |
- |
802,384 | ||||
Currency translation adjustments |
- |
(175,118) |
- |
(175,118) | ||||
Capital increase |
- |
- |
511 |
511 | ||||
Provision for loss |
- |
- |
(511) |
(511) | ||||
Dividends and interest on equity |
(20,101) |
- |
(1,793) |
(21,894) | ||||
Balance at June 30, 2017 |
2,279,044 |
4,002,977 |
35,986 |
6,318,007 |
(c) Equity accounting results
|
|
Parent company | ||||||
Jun/2017 |
Jun/2016 | |||||||
Equity in results of subsidiaries, associate and jointly-controlled |
1,594,603 |
1,029,899 | ||||||
Amortization of fair value adjustment |
(14,497) |
(15,960) | ||||||
(Provision) reversal to subsidiaries with short-term liabilities |
(6,745) |
52,427 | ||||||
Dividends received |
- |
364 | ||||||
1,573,361 |
1,066,730 |
25
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(d) Impacts on consolidation of Braskem Idesa
In compliance with IFRS 12 and CPC 45, the Company is presenting the financial statements of the subsidiary in which it holds non-controlling interest and the effects on the Company’s consolidated statements.
Balance sheet |
|||||||||||||||||
Consolidated Braskem |
Braskem Idesa consolidated (i) |
Eliminations |
Consolidated | ||||||||||||||
Assets |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | |||||||||
|
|
|
|||||||||||||||
Curent |
|||||||||||||||||
Cash and cash equivalents |
5,417,658 |
# |
6,500,265 |
- |
293,792 |
# |
201,600 |
- |
- |
# |
- |
# |
5,711,450 |
# |
6,701,865 | ||
Financial investments |
2,677,819 |
# |
1,190,483 |
- |
- |
# |
- |
- |
- |
# |
- |
# |
2,677,819 |
# |
1,190,483 | ||
Trade accounts receivable |
2,047,055 |
# |
1,455,893 |
- |
501,111 |
# |
247,465 |
- |
(87,652) |
# |
(69,221) |
# |
2,460,514 |
# |
1,634,137 | ||
Inventories |
5,520,262 |
# |
4,862,571 |
- |
387,417 |
# |
375,443 |
- |
- |
# |
- |
# |
5,907,679 |
# |
5,238,014 | ||
Taxes recoverable |
1,095,362 |
# |
710,982 |
- |
88,825 |
# |
115,033 |
- |
- |
# |
- |
# |
1,184,187 |
# |
826,015 | ||
Other receivables |
467,541 |
# |
278,865 |
- |
68,690 |
# |
27,169 |
- |
- |
# |
- |
# |
536,231 |
# |
306,034 | ||
|
# |
|
- |
|
# |
|
- |
|
# |
|
# |
|
# |
| |||
17,225,697 |
# |
14,999,059 |
- |
1,339,835 |
# |
966,710 |
- |
(87,652) |
# |
(69,221) |
# |
18,477,880 |
# |
15,896,548 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Non-current assets held for sale |
- |
# |
359,704 |
- |
- |
# |
- |
- |
- |
# |
- |
# |
- |
# |
359,704 | ||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
17,225,697 |
# |
15,358,763 |
- |
1,339,835 |
# |
966,710 |
- |
(87,652) |
# |
(69,221) |
# |
18,477,880 |
# |
16,256,252 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Non-current |
# |
- |
# |
- |
# |
# |
# |
||||||||||
Taxes recoverable |
1,148,362 |
# |
1,088,304 |
- |
57 |
# |
49 |
- |
- |
# |
- |
# |
1,148,419 |
# |
1,088,353 | ||
Deferred tax |
133,746 |
# |
189,613 |
- |
892,582 |
# |
1,463,502 |
- |
- |
# |
- |
# |
1,026,328 |
# |
1,653,115 | ||
Related parties |
4,917,597 |
# |
4,690,672 |
- |
- |
# |
- |
(ii) |
(4,917,597) |
# |
(4,690,672) |
# |
- |
# |
- | ||
Other receivables |
650,855 |
# |
648,511 |
- |
34,656 |
# |
29,823 |
- |
- |
# |
- |
# |
685,511 |
# |
678,334 | ||
Property, plant and equipment |
18,553,724 |
# |
18,814,175 |
- |
12,622,298 |
# |
11,171,400 |
(iii) |
(727,940) |
# |
(648,865) |
# |
30,448,082 |
# |
29,336,710 | ||
Intangible |
2,621,169 |
# |
2,667,708 |
- |
164,742 |
# |
141,379 |
- |
- |
# |
- |
# |
2,785,911 |
# |
2,809,087 | ||
|
# |
|
- |
|
# |
|
- |
|
# |
|
# |
|
# |
| |||
28,025,453 |
# |
28,098,983 |
- |
13,714,335 |
# |
12,806,153 |
- |
(5,645,537) |
# |
(5,339,537) |
# |
36,094,251 |
# |
35,565,599 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Total assets |
45,251,150 |
# |
43,457,746 |
- |
15,054,170 |
# |
13,772,863 |
- |
(5,733,189) |
# |
(5,408,758) |
# |
54,572,131 |
# |
51,821,851 | ||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Liabilities and shareholders' equity |
# |
- |
# |
- |
# |
# |
# |
||||||||||
Current |
# |
- |
# |
- |
# |
# |
# |
||||||||||
Trade payables |
5,100,510 |
# |
6,335,452 |
- |
244,835 |
# |
278,905 |
- |
(87,652) |
# |
(69,221) |
# |
5,257,693 |
# |
6,545,136 | ||
Borrowings |
4,216,322 |
# |
2,594,463 |
- |
- |
# |
- |
- |
- |
# |
- |
# |
4,216,322 |
# |
2,594,463 | ||
Braskem Idesa Borrowings |
- |
# |
- |
- |
10,195,823 |
# |
10,437,791 |
- |
- |
# |
- |
# |
10,195,823 |
# |
10,437,791 | ||
Payroll and related charges |
460,983 |
# |
540,405 |
- |
15,984 |
# |
22,050 |
- |
- |
# |
- |
# |
476,967 |
# |
562,455 | ||
Taxes payable |
935,411 |
# |
611,231 |
- |
12,269 |
# |
12,849 |
- |
- |
# |
- |
# |
947,680 |
# |
624,080 | ||
Other payables |
1,460,900 |
# |
2,053,031 |
- |
79,099 |
# |
125,955 |
- |
- |
# |
- |
# |
1,539,999 |
# |
2,178,986 | ||
|
# |
|
- |
|
# |
|
- |
|
# |
|
# |
|
# |
| |||
12,174,126 |
# |
12,134,582 |
- |
10,548,010 |
# |
10,877,550 |
- |
(87,652) |
# |
(69,221) |
# |
22,634,484 |
# |
22,942,911 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Non-current liabilities held for sale |
- |
# |
95,396 |
- |
- |
# |
- |
- |
- |
# |
- |
# |
- |
# |
95,396 | ||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
12,174,126 |
# |
12,229,978 |
- |
10,548,010 |
# |
10,877,550 |
- |
(87,652) |
# |
(69,221) |
# |
22,634,484 |
# |
23,038,307 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Non-current |
# |
- |
# |
- |
# |
# |
# |
||||||||||
Loan agreements |
19,385,947 |
# |
20,736,604 |
- |
- |
# |
- |
- |
- |
# |
- |
# |
19,385,947 |
# |
20,736,604 | ||
Braskem Idesa Borrowings |
- |
# |
- |
- |
- |
# |
- |
- |
- |
# |
- |
# |
- |
# |
- | ||
Accounts payable to related parties |
- |
# |
- |
- |
4,869,590 |
# |
4,698,881 |
(ii) |
(4,869,590) |
# |
(4,698,881) |
# |
- |
# |
- | ||
Loan agreement Etileno XXI project |
- |
# |
- |
(v) |
1,679,492 |
# |
1,620,519 |
- |
- |
# |
- |
# |
1,679,492 |
# |
1,620,519 | ||
Provision for losses on subsidiaries |
2,117,544 |
# |
3,053,637 |
- |
- |
# |
- |
(iv) |
(2,117,544) |
# |
(3,053,637) |
# |
- |
# |
- | ||
Other payables |
5,127,670 |
# |
4,698,937 |
- |
4,523 |
# |
6,774 |
- |
- |
# |
- |
# |
5,132,193 |
# |
4,705,711 | ||
|
# |
|
- |
|
# |
|
- |
|
# |
|
# |
|
# |
| |||
26,631,161 |
# |
28,489,178 |
- |
6,553,605 |
# |
6,326,174 |
- |
(6,987,134) |
# |
(7,752,518) |
# |
26,197,632 |
# |
27,062,834 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Shareholders' equity |
# |
- |
# |
- |
# |
# |
# |
||||||||||
Attributable to the Company's shareholders |
6,445,863 |
# |
2,738,590 |
- |
(2,047,445) |
# |
(3,430,861) |
- |
2,047,445 |
# |
3,430,861 |
# |
6,445,863 |
# |
2,738,590 | ||
Non-controlling interest in Braskem Idesa |
- |
# |
- |
- |
- |
# |
- |
- |
(705,848) |
# |
(1,017,880) |
# |
(705,848) |
# |
(1,017,880) | ||
|
# |
|
- |
|
# |
|
- |
|
# |
|
# |
|
# |
| |||
6,445,863 |
# |
2,738,590 |
- |
(2,047,445) |
# |
(3,430,861) |
- |
1,341,597 |
# |
2,412,981 |
# |
5,740,015 |
# |
1,720,710 | |||
# |
- |
# |
- |
# |
# |
# |
|||||||||||
Total liabilities and shareholders' equity |
45,251,150 |
# |
43,457,746 |
- |
15,054,170 |
# |
13,772,863 |
- |
(5,733,189) |
# |
(5,408,758) |
# |
54,572,131 |
# |
51,821,851 | ||
(i) Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Serviços.
(ii) Loan from Braskem Holanda as part of shareholders’ contribution to Braskem Idesa’s project.
(iii) Adjustment corresponding to the capitalization of a portion of financial charges of the loan mentioned above.
(iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa.
(v) Loan owed to the non-controlling shareholder as part of shareholders’ contribution to the project.
26
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
Statement of operations |
|||||||||||||||||
Consolidated Braskem |
|||||||||||||||||
Ex consolidated Braskem Idesa |
Braskem Idesa consolidated |
Eliminations |
Consolidated | ||||||||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | ||||||||||
Continued operations |
Restated | ||||||||||||||||
Net sales revenue |
22,879,823 |
23,370,965 |
1,857,606 |
318,476 |
(267,271) |
(52,909) |
24,470,158 |
23,636,532 | |||||||||
Cost of products sold |
(17,126,516) |
(16,851,407) |
(1,038,061) |
(259,479) |
273,587 |
36,687 |
(17,890,990) |
(17,074,199) | |||||||||
5,753,307 |
6,519,558 |
819,545 |
58,997 |
6,316 |
(16,222) |
6,579,168 |
6,562,333 | ||||||||||
Income (expenses) |
|||||||||||||||||
Selling and distribution |
(619,997) |
(604,596) |
(84,589) |
(44,048) |
- |
- |
(704,586) |
(648,644) | |||||||||
General and administrative |
(575,857) |
(521,977) |
(61,369) |
(88,759) |
14,842 |
24,112 |
(622,384) |
(586,624) | |||||||||
Research and development |
(72,145) |
(82,628) |
- |
- |
- |
- |
(72,145) |
(82,628) | |||||||||
Results from equity investments |
500,665 |
(466,953) |
- |
- |
(477,814) |
480,330 |
22,851 |
13,377 | |||||||||
Other income (expenses), net |
|
35,910 |
(349,243) |
(19,103) |
(14,262) |
- |
- |
16,807 |
(363,505) | ||||||||
5,021,883 |
4,494,161 |
654,484 |
(88,072) |
(456,656) |
488,220 |
5,219,711 |
4,894,309 | ||||||||||
Financial results |
|||||||||||||||||
Financial expenses |
(1,293,569) |
(1,519,787) |
(494,436) |
(200,265) |
131,918 |
27,893 |
(1,656,087) |
(1,692,159) | |||||||||
Financial income |
445,771 |
497,102 |
2,677 |
1,876 |
(131,918) |
(123,223) |
316,530 |
375,755 | |||||||||
Exchange rate variations, net |
(446,018) |
(1,642,834) |
778,735 |
(510,952) |
(56,113) |
91,094 |
276,604 |
(2,062,692) | |||||||||
(1,293,816) |
(2,665,519) |
286,976 |
(709,341) |
(56,113) |
(4,236) |
(1,062,953) |
(3,379,096) | ||||||||||
Profit before income tax |
|||||||||||||||||
and social contribution |
3,728,067 |
1,828,642 |
941,460 |
(797,413) |
(512,769) |
483,984 |
4,156,758 |
1,515,213 | |||||||||
IR and CSL - current and deferred |
(839,543) |
(616,545) |
(269,420) |
153,320 |
- |
- |
(1,108,963) |
(463,225) | |||||||||
Profit for the period of continued operations |
2,888,524 |
1,212,097 |
672,040 |
(644,093) |
(512,769) |
483,984 |
3,047,795 |
1,051,988 | |||||||||
Discontinued operations results |
|||||||||||||||||
Profit from discontinued operations |
13,499 |
27,200 |
- |
- |
- |
- |
13,499 |
27,200 | |||||||||
IR and CSL - current and deferred |
(4,623) |
(8,927) |
- |
- |
- |
- |
(4,623) |
(8,927) | |||||||||
8,876 |
18,273 |
- |
- |
- |
- |
8,876 |
18,273 | ||||||||||
Profit for the period |
2,897,400 |
1,230,370 |
672,040 |
(644,093) |
(512,769) |
483,984 |
3,056,671 |
1,070,261 |
27
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
Statement of cash flows |
Consolidated Braskem |
||||||||||||||||
Ex consolidated Braskem Idesa |
Braskem Idesa consolidated |
Eliminations |
Consolidated | ||||||||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | ||||||||||
Restated | |||||||||||||||||
Profit before income tax and social contribution and |
3,728,067 |
1,855,842 |
941,460 |
(797,413) |
(512,769) |
483,984 |
4,156,758 |
1,542,413 | |||||||||
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||
Adjustments for reconciliation of profit (loss) |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
Depreciation, amortization and depletion |
1,091,056 |
1,192,158 |
354,304 |
59,707 |
(21,158) |
(7,890) |
1,424,202 |
1,243,975 | |||||||||
Results from equity investments |
(500,665) |
466,953 |
- |
- |
477,814 |
(480,330) |
(22,851) |
(13,377) | |||||||||
Interest and monetary and exchange variations, net |
1,360,610 |
721,003 |
(124,505) |
206,470 |
56,113 |
4,236 |
1,292,218 |
931,709 | |||||||||
Gain from divestment in subsidiary |
(276,816) |
- |
- |
- |
- |
- |
(276,816) |
- | |||||||||
Provision for losses and write-offs of long-lived assets |
25,402 |
12,936 |
328 |
23 |
- |
- |
25,730 |
12,959 | |||||||||
|
|
|
|
|
|
|
| ||||||||||
5,427,654 |
4,248,892 |
1,171,587 |
(531,213) |
- |
- |
6,599,241 |
3,717,679 | ||||||||||
Changes in operating working capital |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
Held-for-trading financial investments |
(1,430,383) |
(466,498) |
- |
- |
- |
- |
(1,430,383) |
(466,498) | |||||||||
Trade accounts receivable |
(585,091) |
741,723 |
(253,646) |
(27,197) |
18,431 |
18,130 |
(820,306) |
732,656 | |||||||||
Inventories |
(644,312) |
417,859 |
(19,543) |
(43,913) |
- |
- |
(663,855) |
373,946 | |||||||||
Taxes recoverable |
156,471 |
626,156 |
27,569 |
60,621 |
- |
- |
184,040 |
686,777 | |||||||||
Prepaid expenses |
(73,496) |
23,420 |
(29,201) |
(15,498) |
- |
- |
(102,697) |
7,922 | |||||||||
Other receivables |
(15,035) |
(17,521) |
(31,640) |
(7,886) |
- |
- |
(46,675) |
(25,407) | |||||||||
Trade payables |
(1,293,533) |
(2,141,753) |
(34,070) |
(204,469) |
(18,431) |
(18,130) |
(1,346,034) |
(2,364,352) | |||||||||
Taxes payable |
(21,779) |
(267,212) |
(155,434) |
257,397 |
- |
- |
(177,213) |
(9,815) | |||||||||
Advances from customers |
(63,951) |
(47,760) |
(7,767) |
612 |
- |
- |
(71,718) |
(47,148) | |||||||||
Leniency agreement |
(607,358) |
- |
- |
- |
- |
- |
(607,358) |
- | |||||||||
Other payables |
(280,448) |
(333,998) |
50,617 |
159,868 |
- |
- |
(229,831) |
(174,130) | |||||||||
|
|
|
|
|
|
|
| ||||||||||
Cash from operations |
568,739 |
2,783,308 |
718,472 |
(351,678) |
- |
- |
1,287,211 |
2,431,630 | |||||||||
Interest paid |
(777,700) |
(663,335) |
(247,242) |
(275,633) |
- |
- |
(1,024,942) |
(938,968) | |||||||||
Income tax and social contribution paid |
(600,908) |
(668,126) |
(1,370) |
- |
- |
- |
(602,278) |
(668,126) | |||||||||
|
|
|
|
|
|
|
| ||||||||||
Net cash generated by operating activities |
(809,869) |
1,451,847 |
469,860 |
(627,311) |
- |
- |
(340,009) |
824,536 | |||||||||
Proceeds from the sale of fixed assets |
450,000 |
- |
- |
- |
- |
- |
450,000 |
- | |||||||||
Acquisitions to property, plant and equipment and intangible assets |
(701,863) |
(910,625) |
(62,971) |
(322,521) |
- |
- |
(764,834) |
(1,233,146) | |||||||||
Other investiments |
1,468 |
38,467 |
- |
- |
- |
- |
1,468 |
38,467 | |||||||||
|
|
|
|
|
|
|
| ||||||||||
Net cash used in investing activities |
(250,395) |
(872,158) |
(62,971) |
(322,521) |
- |
- |
(313,366) |
(1,194,679) | |||||||||
Short-term and long-term debt |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
Obtained |
1,486,963 |
1,937,284 |
- |
- |
- |
- |
1,486,963 |
1,937,284 | |||||||||
Payments |
(1,513,356) |
(1,865,492) |
- |
- |
- |
- |
(1,513,356) |
(1,865,492) | |||||||||
Braskem Idesa borrowings |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
Obtained |
- |
- |
187,959 |
153,126 |
- |
- |
187,959 |
153,126 | |||||||||
Payments |
- |
- |
(448,525) |
(227,201) |
- |
- |
(448,525) |
(227,201) | |||||||||
Related parties |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
Obtained loans (payment of loans ) |
20,637 |
(925,183) |
(20,637) |
925,183 |
- |
- |
- |
- | |||||||||
Dividends paid |
(41) |
(998,982) |
- |
- |
- |
- |
(41) |
(998,982) | |||||||||
|
|
|
|
|
|
|
| ||||||||||
Net provided (used) in financing activities |
(5,797) |
(1,852,373) |
(281,203) |
851,108 |
- |
- |
(287,000) |
(1,001,265) | |||||||||
Exchange variation on cash of foreign subsidiaries |
(16,546) |
539,202 |
(33,493) |
29,578 |
- |
- |
(50,039) |
568,780 | |||||||||
|
|
|
|
|
|
|
| ||||||||||
Increase (decrease) in cash and cash equivalents |
(1,082,607) |
(733,482) |
92,193 |
(69,146) |
- |
- |
(990,414) |
(802,628) | |||||||||
Represented by |
|||||||||||||||||
Cash and cash equivalents at the beginning for the period |
6,500,265 |
6,908,623 |
201,599 |
134,639 |
- |
- |
6,701,864 |
7,043,262 | |||||||||
Cash and cash equivalents at the end for the period |
5,417,658 |
6,175,141 |
293,792 |
65,493 |
- |
- |
5,711,450 |
6,240,634 | |||||||||
|
|
|
|
|
|
|
| ||||||||||
Increase (decrease) in cash and cash equivalents |
(1,082,607) |
(733,482) |
92,193 |
(69,146) |
- |
- |
(990,414) |
(802,628) | |||||||||
28
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
11. Property, plant and equipment
The information on property, plant and equipment was presented in the Company’s 2016 annual financial statements, in Note 13.
Consolidated | ||||||||||||||
|
|
|
|
Jun/2017 |
|
|
|
|
Dec/2016 | |||||
Accumulated |
Accumulated |
|||||||||||||
depreciation/ |
depreciation/ |
|||||||||||||
Cost |
depletion |
Net |
Cost |
depletion |
Net | |||||||||
Land |
481,773 |
- |
481,773 |
471,655 |
- |
471,655 | ||||||||
Buildings and improvements |
6,109,166 |
(1,313,069) |
4,796,097 |
5,530,714 |
(1,111,642) |
4,419,072 | ||||||||
Machinery, equipment and installations |
38,728,299 |
(17,768,071) |
20,960,228 |
36,804,409 |
(16,595,497) |
20,208,912 | ||||||||
Projects and stoppage in progress |
3,490,516 |
- |
3,490,516 |
3,495,965 |
- |
3,495,965 | ||||||||
Other |
1,450,691 |
(731,223) |
719,468 |
1,404,759 |
(663,653) |
741,106 | ||||||||
Total |
50,260,445 |
(19,812,363) |
30,448,082 |
47,707,502 |
(18,370,792) |
29,336,710 | ||||||||
Capitalized charges in the six-month period ended June 30, 2017 were R$73,186 (R$298,804 on June 30, 2016).
There were no significant events or circumstances in this period that indicate the need for impairment testing on the property, plant and equipment.
12. Intangible assets
The information on intangible assets was presented in the 2016 annual financial statements of the Company, in Note 14.
Consolidated | ||||||||||||||
|
|
|
|
Jun/2017 |
Dec/2016 | |||||||||
Accumulated |
Accumulated |
|||||||||||||
Cost |
amortization |
Net |
Cost |
amortization |
Net | |||||||||
Goodwill based on future profitability |
3,187,722 |
(1,128,848) |
2,058,874 |
3,187,722 |
(1,128,848) |
2,058,874 | ||||||||
Trademarks and patents |
361,059 |
(115,914) |
245,145 |
339,512 |
(110,880) |
228,632 | ||||||||
Software and use rights |
588,019 |
(384,481) |
203,538 |
566,673 |
(364,336) |
202,337 | ||||||||
Contracts with customers and suppliers |
780,645 |
(502,291) |
278,354 |
772,888 |
(453,644) |
319,244 | ||||||||
Total |
4,917,445 |
(2,131,534) |
2,785,911 |
4,866,795 |
(2,057,708) |
2,809,087 |
There were no significant events or circumstances in the period ended June 30, 2017 that indicated the need for updating the impairment testing of intangible assets with indefinite useful life made in the end of 2016, or that indicated the need to perform an impairment testing of intangible assets with definite useful life.
29
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
13. Borrowings
(a) The information on borrowings was presented in the 2016 annual financial statements of the Company, in Note 15.
The Company has borrowings contracted from financial institutions and the capital markets that include restrictive clauses (covenants) requiring the presentation of its audited financial statements within the legal deadline (or within 120 days from the end of the fiscal year).
On the base date for the quarterly information of June 30, 2017, these clauses were not being complied with on the base date of these quarterly financial statements within de legal deadline for the following contracts. For this reason, the amounts indicated in the column “Reclassification to current liabilities” in the following table, have been reclassified to current liabilities, in compliance with CPC 26 and its corresponding accounting standard IAS 1 (Presentation of Financial Statements).
According to the standards mentioned above, such reclassification is required when a contractual breach entitles creditors to request the immediate repayment of the obligations in the short-term. In this context, note that none of the Company's creditors requested such advance payment of the obligations and that Braskem has been settling these obligations in accordance with their original maturity schedule.
Additionally, said clauses will be automatically complied with once the audited financial statements are presented, as of when said creditors will no longer be entitled to request the immediate repayment of short-term obligations, with the amounts listed in the column “Reclassification to current liabilities” in the following table from short-term to long-term.
Consolidated - Jun/2017 | ||
Local currency | ||
Maturity |
Government Agents | |
2018 |
- | |
2019 |
2,793 | |
2020 |
5,255 | |
2021 |
5,255 | |
2022 |
5,149 | |
2023 |
4,896 | |
2024 |
4,896 | |
2025 |
4,896 | |
2026 |
4,893 | |
2027 and thereafter |
2,448 | |
Total |
40,481 |
30
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b) Borrowings position
|
|
Consolidated | |||||||||
Annual financial charges (%) |
Jun/2017 |
Dec/2016 | |||||||||
Foreign currency |
|||||||||||
Bonds |
US dollar exchange variation + interest between 5.38 and 7.38 |
14,239,556 |
14,216,539 | ||||||||
Advances on exchange contracts |
US dollar exchange variation + 3.91% |
1,511,401 |
362,779 | ||||||||
Export prepayment |
Note 13 (c) |
590,378 |
777,801 | ||||||||
BNDES |
US dollar exchange variation + interest between 6.70 and 6.86 |
150,781 |
201,147 | ||||||||
Export credit notes |
US dollar exchange variation + interest between 7.30 and 8.10 |
1,190,301 |
1,173,127 | ||||||||
Working capital |
US dollar exchange variation + 1.77% above Libor |
1,464,528 |
1,644,487 | ||||||||
Transactions costs |
(185,344) |
(199,570) | |||||||||
18,961,601 |
18,176,310 | ||||||||||
Current liabilities |
2,848,157 |
1,128,524 | |||||||||
Non-current liabilities |
16,113,444 |
17,047,786 | |||||||||
Total |
18,961,601 |
18,176,310 | |||||||||
Local currency |
|||||||||||
Export credit notes |
8.00 |
302,652 |
381,632 | ||||||||
Export credit notes |
105.00 e 112.50 of CDI |
(i) |
1,707,898 |
1,717,262 | |||||||
BNDES |
TJLP + interest between 0.00 and 3.58 |
1,242,629 |
1,527,765 | ||||||||
BNDES |
SELIC + interest between 2.32 and 2.78 |
560,651 |
602,648 | ||||||||
BNDES |
Interest between 3.50 and 7.00 |
241,481 |
288,486 | ||||||||
BNB/ FINEP/ FUNDES |
6.21 |
524,486 |
580,647 | ||||||||
FINAME |
TJLP + 1.90 |
1,680 |
1,850 | ||||||||
Fundo de Desenvolvimento do Nordeste (FDNE) |
6.50 |
44,510 |
46,991 | ||||||||
Other |
CDI + 0.04 |
24,400 |
19,321 | ||||||||
Transactions costs |
(9,719) |
(11,845) | |||||||||
4,640,668 |
5,154,757 | ||||||||||
Current liabilities |
1,368,165 |
1,465,938 | |||||||||
Non-current liabilities |
3,272,503 |
3,688,819 | |||||||||
Total |
4,640,668 |
5,154,757 | |||||||||
Foreign currency and local currency |
|||||||||||
Current liabilities |
4,216,322 |
2,594,462 | |||||||||
Non-current liabilities |
19,385,947 |
20,736,605 | |||||||||
Total |
23,602,269 |
23,331,067 |
(i) The Company enters into swap transactions to offset the variation in the Interbank Certificate of Deposit (CDI) rate (Note 15.2.1 (a.ii)).
|
|
Parent company | |||||||||
Jun/2017 |
Dec/2016 | ||||||||||
Foreign currency |
|||||||||||
Current liabilities |
2,041,884 |
651,471 | |||||||||
Non-current liabilities |
2,358,978 |
2,774,213 | |||||||||
4,400,862 |
3,425,684 | ||||||||||
Local currency |
|||||||||||
Current liabilities |
1,327,684 |
1,465,938 | |||||||||
Non-current liabilities |
3,312,984 |
3,688,819 | |||||||||
4,640,668 |
5,154,757 | ||||||||||
Foreign currency and local currency |
|||||||||||
Current liabilities |
3,369,568 |
2,117,409 | |||||||||
Non-current liabilities |
5,671,962 |
6,463,032 | |||||||||
Total |
9,041,530 |
8,580,441 |
31
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(c) Export prepayments
Initial amount |
|||||||||||
of the transaction |
Consolidated | ||||||||||
Issue date |
(US$) |
Maturity |
Charges (% per year) |
Jun/2017 |
Dec/2016 | ||||||
Jan-2013 |
200,000 |
Nov-2022 |
US dollar exchange variation + semiannual Libor + 1.10 |
364,691 |
391,923 | ||||||
May-2016 |
50,000 |
May-2017 |
US dollar exchange variation + quarterly Libor + 3.25 |
- |
163,564 | ||||||
Dec-2016 |
68,000 |
Nov-2019 |
US dollar exchange variation + quarterly Libor + 2.60 |
225,687 |
222,314 | ||||||
Total |
318,000 |
590,378 |
777,801 |
(d) Payment schedule
The payment schedule below shows the original long-term maturities, not including the reclassification to current liabilities arising from the breach of contractual covenants related to the presentation of audited financial statements within the legal term (Note 13(a)).
The maturity profile of amounts maturing in the long-term is as follows:
|
|
Consolidated | ||||
Jun/2017 |
Dec/2016 | |||||
2018 |
1,015,015 |
2,379,757 | ||||
2019 |
3,138,233 |
3,310,384 | ||||
2020 |
2,479,107 |
2,442,493 | ||||
2021 |
3,724,233 |
3,667,632 | ||||
2022 |
1,771,643 |
1,745,936 | ||||
2023 |
13,760 |
13,772 | ||||
2024 |
2,497,899 |
2,461,086 | ||||
2025 |
3,827 |
3,839 | ||||
2026 |
1,379 |
1,391 | ||||
2027 and thereafter |
4,781,332 |
4,710,315 | ||||
Total |
19,426,428 |
20,736,605 |
(e) Guarantees
Braskem gave collateral for part of its borrowings as follows:
Total debt |
Total |
|||||||
Loans |
Maturity |
Jun/2017 |
guaranteed |
Guarantees | ||||
BNB |
Dec-2022 |
122,222 |
122,222 |
Mortgage of plants, pledge of machinery and equipment | ||||
BNB |
Aug-2024 |
202,649 |
202,649 |
Bank surety | ||||
BNDES |
Jan-2022 |
2,195,542 |
2,195,542 |
Mortgage of plants, land and property, pledge of machinery and equipment | ||||
FUNDES |
Jun-2020 |
95,843 |
95,843 |
Mortgage of plants, land and property, pledge of machinery and equipment | ||||
FINEP |
Jul-2024 |
103,772 |
103,772 |
Bank surety | ||||
FINAME |
Feb-2022 |
1,680 |
1,680 |
Pledge of equipment | ||||
Total |
2,721,708 |
2,721,708 |
32
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
14. Braskem Idesa borrowings
The information on Braskem Idesa borrowings was presented in the 2016 annual financial statements in Note 16.
Initial value |
||||||||||
of operation |
|
|
Consolidated | |||||||
Identification |
US$ |
Maturity |
Charges (% per year) |
Jun/2017 |
Dec/2016 | |||||
Project finance |
(i) |
|||||||||
Project finance I |
700,000 |
Feb-2027 |
Us dollar exchange variation + quarterly Libor + 3.25 |
2,242,709 |
2,274,754 | |||||
Project finance II |
189,996 |
Feb-2027 |
Us dollar exchange variation + 6.17 |
642,356 |
663,856 | |||||
Project finance III |
600,000 |
Feb-2029 |
Us dollar exchange variation + 4.33 |
1,866,837 |
1,911,857 | |||||
Project finance IV |
680,004 |
Feb-2029 |
Us dollar exchange variation + quarterly Libor + 3.88 |
2,067,783 |
2,111,234 | |||||
Project finance V |
400,000 |
Feb-2029 |
Us dollar exchange variation + quarterly Libor + 4.65 |
1,246,933 |
1,276,449 | |||||
Project finance VI |
89,994 |
Feb-2029 |
Us dollar exchange variation + quarterly Libor + 2.73 |
279,729 |
286,480 | |||||
Project finance VII |
533,095 |
Feb-2029 |
Us dollar exchange variation + quarterly Libor + 4.64 |
1,661,814 |
1,701,229 | |||||
Transactions costs |
- |
(110,906) |
(104,157) | |||||||
Total |
3,193,089 |
9,897,255 |
10,121,702 | |||||||
Other borrowings |
||||||||||
VAT borrowings |
(ii) |
Nov-2029 |
2.00% above TIIE (*) |
- |
13,500 | |||||
Borrowings for working capital |
Aug-2017 |
Us dollar exchange variation + quarterly Libor + 3.18 |
298,568 |
302,589 | ||||||
298,568 |
316,089 | |||||||||
10,195,823 |
10,437,791 | |||||||||
Current liabilities |
10,195,823 |
10,437,791 | ||||||||
Total |
10,195,823 |
10,437,791 |
(*) TIIE – “Tasa de Interés Interbancaria de Equilibrio” – basic interest rate in Mexico, similar to the CDI overnight rate in Brazil.
(i) Financing without resource or with resource limited to shareholders.
(ii) Financing obtained in Mexican peso and paid exclusively with IVA refund, settled in January 2017.
This kind of Project finance includes restrictive contractual clauses (covenants), among others, that require the presentation of the audited financial statements within the legal deadline (or within 120 days from the end of the fiscal year).
At the reporting date for the quarterly information as of June 30, 2017, these clauses were not being complied with on the base date of these quarterly financial statements within the legal term, as well as other obligations customary in contracts of this nature. In this sense, the entire balance of non-current liabilities, in the amount of R$9,146,643, was reclassified to current liabilities, in accordance with CPC 26 and its corresponding accounting standard IAS 1 (Presentation of Financial Statements).
According to the standards mentioned above, such reclassification is required when a contractual breach entitles creditors to request the immediate repayment of the obligations in the short-term. In this context, note that none of the its creditors has requested said immediate repayment of obligations and Braskem Idesa has been settling this obligation in accordance with its original maturity schedule.
33
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
Additionally, Braskem Idesa has already entered into agreements with its creditors to obtain approvals for said contractual breach in order to return the entire amount reclassified from current liabilities to non-current liabilities.
The payment schedule below shows the original long-term maturities, excluding the reclassification to current liabilities arising from the breach of contractual covenants mentioned previously.
Jun/2017 |
Dec/2016 | |||
2018 |
361,079 |
709,793 | ||
2019 |
736,980 |
736,885 | ||
2020 |
864,851 |
864,149 | ||
2021 |
988,253 |
986,914 | ||
2022 |
823,285 |
822,235 | ||
2023 |
1,090,310 |
1,088,155 | ||
2024 |
1,179,751 |
1,177,017 | ||
2025 |
1,179,390 |
1,176,346 | ||
2026 |
1,038,472 |
1,035,586 | ||
2027 and thereafter |
884,272 |
894,606 | ||
Total |
9,146,643 |
9,491,686 |
34
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
15. Financial instruments
The information related to financial instruments was presented in the 2016 financial statements of the Company, in Note 17.
15.1. Non-derivative financial instruments and leniency agreement (Note 19.3) – consolidated
Fair value |
Book value |
Fair value | ||||||||||||
Note |
Classification by category |
hierarchy |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | ||||||||
Cash and cash equivalents |
4 |
|||||||||||||
Cash and banks |
2,567,561 |
2,178,611 |
2,567,561 |
2,178,611 | ||||||||||
Financial investments in Brazil |
Loans and receivables |
1,743,939 |
2,914,685 |
1,743,939 |
2,914,685 | |||||||||
Financial investments abroad |
Held-for-trading |
Level 2 |
1,399,950 |
1,608,568 |
1,399,950 |
1,608,568 | ||||||||
5,711,450 |
6,701,864 |
5,711,450 |
6,701,864 | |||||||||||
Financial investments |
5 |
|||||||||||||
Letras financeiras do tesouro - LFT |
Held-for-trading |
Level 2 |
2,236,755 |
755,712 |
2,236,755 |
755,712 | ||||||||
Time deposit investments |
Loans and receivables |
Level 2 |
440,568 |
434,015 |
440,568 |
434,015 | ||||||||
Other |
Held-to-maturity |
Level 2 |
496 |
756 |
496 |
756 | ||||||||
2,677,819 |
1,190,483 |
2,677,819 |
1,190,483 | |||||||||||
Trade accounts receivable |
6 |
2,523,211 |
1,704,373 |
2,523,211 |
1,704,373 | |||||||||
Trade payables |
5,530,604 |
6,746,822 |
5,530,604 |
6,746,822 | ||||||||||
Borrowings |
13 |
|||||||||||||
Foreign currency - Bond |
Level 1 |
14,239,556 |
14,216,539 |
15,039,361 |
12,509,981 | |||||||||
Foreign currency - other borrowings |
4,907,389 |
4,159,341 |
4,907,389 |
4,159,341 | ||||||||||
Local currency |
4,650,387 |
5,166,602 |
4,650,387 |
5,166,602 | ||||||||||
23,797,332 |
23,542,482 |
24,597,137 |
21,835,924 | |||||||||||
Braskem Idesa borrowings |
14 |
10,306,729 |
10,541,948 |
10,306,729 |
10,541,948 | |||||||||
Loan ton non-controlling |
1,679,492 |
1,620,519 |
1,679,492 |
1,620,519 | ||||||||||
Leniency agreement |
19.3 |
2,314,344 |
2,853,230 |
2,314,344 |
2,853,230 | |||||||||
Other payables (BNDESPAR) |
- |
176,846 |
- |
176,846 |
15.2. Derivative financial instruments designated and not designated for hedge accounting
15.2.1 Changes
Net |
Net | |||||||||||||||||
Operation characteristics |
(Asset)/ |
(Asset)/ | ||||||||||||||||
Fair value |
Principal exposure |
Accumulated |
Liability |
Change in |
Financial |
Liability | ||||||||||||
Identification |
Note |
hierarchy |
Derivatives |
OCI (equity) |
Dec/2016 |
fair value |
settlement |
Jun/2017 | ||||||||||
Hedge accounting transactions |
||||||||||||||||||
Dollar put option |
15.2.1 (a.i) |
Level 2 |
Real |
Dollar |
- |
0 |
(4,184) |
5,139 |
- |
955 | ||||||||
Exchange swap |
15.2.1 (a.ii) |
Level 2 |
CDI |
Dollar + Interests |
533,134 |
857,099 |
14,484 |
(9,148) |
862,435 | |||||||||
Interest rate swaps |
Level 2 |
Libor |
Fixed rates |
302,399 |
(266) |
(1,316) |
5,207 |
3,625 | ||||||||||
835,533 |
852,649 |
18,307 |
(3,941) |
867,015 | ||||||||||||||
Derivatives operations |
||||||||||||||||||
Current assets |
(8,387) |
- | ||||||||||||||||
Non-current assets |
(29,308) |
(14,820) | ||||||||||||||||
Current liabilities |
29,042 |
41,350 | ||||||||||||||||
Non-current liabilities |
861,302 |
840,485 | ||||||||||||||||
852,649 |
867,015 |
35
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(a) Operations designated for hedge accounting
(a.i) U.S. dollar Put Options
In September 2016, Braskem launched a recurring currency hedge program to mitigate the exposure of its cash flows to liabilities denominated in Brazilian real and not pegged to the U.S. dollar (such as electricity, payroll, etc.).
As of June 30, 2017, Braskem held a total notional value of put options of R$3,258, with a maximum term of 18 months and average strike price of 2.97 R$/US$. Braskem also held a total notional value of short positions in call option contracts in the amount of R$2,261. The average strike price of the short position in call options was R$4.28.
This type of strategy involving options, called Collar, offers protection in the event the Brazilian real appreciates while simultaneously enabling the capture of competitiveness gains in the event of currency depreciation, until limited to the strike price of the options.
Such operations were designed for the hedge accounting of cash flows as from January 1, 2017, and seek to hedge future dollar-denominated revenues with maturities in months coinciding with the maturity of the derivatives.
(a.ii) Swaps related to export credit notes (NCE)
Identification |
Maturity |
|||||||||
Hedge |
Fair value | |||||||||
Nominal value |
Financial charges for year |
Jun/2017 |
Dec/2016 | |||||||
Swap NCE I to III |
400,000 |
Exchange variation + 6.15% |
Aug-2019 |
439,611 |
438,201 | |||||
Swap NCE IV to VII |
450,000 |
Exchange variation + 4.93% to 7.90% |
Apr-2019 |
422,824 |
418,898 | |||||
Total |
850,000 |
862,435 |
857,099 | |||||||
Derivatives operations |
||||||||||
Current assets |
- |
(4,203) | ||||||||
Current liabilities |
21,950 |
- | ||||||||
Non-Current liabilities |
840,485 |
861,302 | ||||||||
Total |
862,435 |
857,099 |
36
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
15.3. Non-derivative liabilities designated for export hedge accounting
(a.i) Future exports in U.S. dollars
On June 30, 2017, exports that were designated and not yet realized are shown below:
|
|
|
|
Total nominal value | ||
|
US$ | |||||
|
|
|
|
|||
2017 |
|
|
|
|
420,273 | |
2018 |
|
|
|
|
787,894 | |
2019 |
|
|
|
|
733,980 | |
2020 |
|
|
|
|
724,000 | |
2021 |
|
|
|
|
716,000 | |
2022 |
|
|
|
|
719,000 | |
2023 |
|
|
|
|
718,372 | |
2024 |
|
|
|
|
688,854 | |
|
|
|
|
5,508,373 |
The following table shows the changes in financial instruments designated for this hedge in the period:
|
|
|
|
|
|
US$ | ||
Sales in |
Hedge |
|||||||
Dec/2016 |
the year |
discontinued |
Jun/2017 | |||||
Designated balance |
5,917,784 |
(409,412) |
(609,598) |
4,898,774 |
On June 30, 2017, the maturities of financial liabilities designated, within the scope of the consolidated balance sheet, were as follows:
|
|
|
|
Total nominal value | ||
|
US$ | |||||
|
|
|
|
|||
2017 |
|
|
|
|
889,595 | |
2018 |
|
|
|
|
772,104 | |
2019 |
|
|
|
|
449,736 | |
2020 |
|
|
|
|
570,782 | |
2021 |
|
|
|
|
1,017,703 | |
2022 |
|
|
|
|
510,000 | |
2024 |
|
|
|
|
688,854 | |
|
|
|
|
4,898,774 |
37
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
Considering the strong cash generation in recent quarters, the Management of the Company believed it was appropriate to advance the payment of dollar-denominated obligations, including liabilities designated for this hedge. As a result of the decision, the amount of US$609,598 was discontinued prospectively. Exchange variation on the discontinued amount, of R$771,222, which is recorded under Shareholders' Equity as “Other comprehensive income” (“OCI”) will be taken to net financial income (expenses) as of July 2017, as the hedged exports are realized.
Conversion rate |
||||||||
Total nominal |
at Inception |
Closing rate |
Gross nominal | |||||
value US$ |
R$/US$ |
R$/US$ |
value | |||||
Hedge descontinued - Third quarter 2017 |
207,273 |
2.0017 |
3.3302 |
275,362 | ||||
Hedge descontinued - Fourth quarter 2017 |
213,000 |
2.0017 |
3.1684 |
248,507 | ||||
Hedge descontinued - First quarter 2018 |
189,325 |
2.0017 |
3.3082 |
247,353 | ||||
609,598 |
771,222 |
The following table provides the balances of exchange variation recognized in the Company’s net financial income (expenses) due to the realization of exports designated for this hedge for the six-month period ended June 30, 2017:
Conversion rate |
||||||||
Total nominal |
at Inception |
Closing rate |
Gross nominal | |||||
value US$ |
MXN/US$ |
MXN/US$ |
value | |||||
First quarter |
201,277 |
2.0017 |
3.2400 |
249,241 | ||||
Second quarter |
208,135 |
2.0017 |
3.2015 |
249,721 | ||||
409,412 |
498,962 |
The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” of this hedge are as follows:
Exchange |
Net | ||||
variation |
IR and CSL |
effect | |||
At December 31, 2016 |
(7,439,927) |
2,529,575 |
(4,910,352) | ||
Exchange variation recorded in the period on OCI / IR and CSL |
(230,507) |
78,372 |
(152,135) | ||
Exchange variation transferred to profit or loss / IR and CSL |
498,962 |
(169,647) |
329,315 | ||
At June 30, 2017 |
(7,171,472) |
2,438,300 |
(4,733,172) |
38
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(a.ii) Liabilities related to the Project Finance of future sales in U.S. dollar
On June 30, 2017, sales designated and not yet realized are as follows:
|
|
|
|
Nominal value | ||
|
|
|
|
US$ | ||
|
|
|
|
|||
2017 |
|
|
|
|
106,182 | |
2018 |
|
|
|
|
221,790 | |
2019 |
|
|
|
|
229,270 | |
2020 |
|
|
|
|
266,690 | |
2021 |
|
|
|
|
303,392 | |
2022 |
|
|
|
|
253,204 | |
2023 |
|
|
|
|
333,093 | |
2024 |
|
|
|
|
359,559 | |
2025 |
|
|
|
|
357,903 | |
2026 |
|
|
|
|
309,240 | |
2027 |
|
|
|
|
152,103 | |
2028 |
|
|
|
|
124,654 | |
2029 |
|
|
|
|
31,164 | |
|
|
|
|
3,048,244 |
The following table shows the changes in financial instruments designated for these hedge operations in the period:
|
|
|
|
|
|
US$ | ||||
Sales in |
Hedge |
|||||||||
Dec/2016 |
the year |
discontinued |
Jun/2017 | |||||||
Designated balance |
3,125,315 |
(77,070) |
(12,091) |
3,036,154 |
On June 30, 2017, the maturities of financial liabilities designated were distributed as follows:
|
|
|
|
Nominal value | ||
|
US$ | |||||
|
|
|
|
|||
2017 |
|
|
|
|
105,992 | |
2018 |
|
|
|
|
221,390 | |
2019 |
|
|
|
|
228,850 | |
2020 |
|
|
|
|
266,187 | |
2021 |
|
|
|
|
302,816 | |
2022 |
|
|
|
|
252,723 | |
2023 |
|
|
|
|
332,458 | |
2024 |
|
|
|
|
358,788 | |
2025 |
|
|
|
|
357,221 | |
2026 |
|
|
|
|
308,650 | |
2027 |
|
|
|
|
150,419 | |
2028 |
|
|
|
|
124,348 | |
2029 |
|
|
|
|
26,312 | |
|
|
|
|
3,036,154 |
39
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
The following table provides the balance of exchange variation of the discontinued amount, net of realization already occurred, on June 30, 2017, which is recorded in Braskem Idesa’s shareholders’ equity under “Other comprehensive income” and will be transferred to financial income (expenses) according to the schedule of future hedged sales:
Conversion rate |
||||||||||
Total nominal |
at Inception |
Closing rate |
Total nominal |
Gross nominal | ||||||
value US$ |
MXN/US$ |
MXN/US$ |
value MXN |
value | ||||||
Hedge descontinued |
12,091 |
13.4541 |
17.9915 |
54,860 |
10,039 | |||||
54,860 |
10,039 |
The following table provides the balances of exchange variation recognized in Braskem Idesa’s financial income (expenses) due to the realization of sales designated for this hedge over the course of the six-month period ended June 30, 2017:
Conversion rate |
||||||||||
Total nominal |
at Inception |
Closing rate |
Total nominal |
Gross nominal | ||||||
value US$ |
MXN/US$ |
MXN/US$ |
value MXN |
value | ||||||
First quarter |
29,174 |
13.6650 |
20.0871 |
187,361 |
30,918 | |||||
Second quarter |
47,896 |
13.6560 |
18.5659 |
235,167 |
42,992 | |||||
77,070 |
422,528 |
73,910 |
The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” are as follows:
Exchange |
Net | ||||
variation |
IR |
effect | |||
At December 31, 2016 |
(4,182,052) |
1,255,350 |
(2,926,702) | ||
Exchange variation recorded in the period on OCI / IR |
1,403,603 |
(421,081) |
982,522 | ||
Exchange variation transferred to profit or loss / IR |
73,910 |
(22,173) |
51,737 | ||
At June 30, 2017 |
(2,704,539) |
812,096 |
(1,892,443) |
40
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
15.4. Credit quality of financial assets
(a) Trade accounts receivable
On June 30, 2017, the credit ratings for the domestic market were as follows:
|
|
|
|
|
(%) |
|
|
|
Jun/2017 |
|
Dec/2016 |
1 |
Minimum risk |
|
12.58 |
|
8.92 |
2 |
Low risk |
|
38.61 |
|
39.98 |
3 |
Moderate risk |
|
25.63 |
|
30.51 |
4 |
High risk |
|
18.60 |
|
16.48 |
5 |
Very high risk |
(i) |
4.58 |
|
4.11 |
(i) Most clients in this group are inactive and the respective accounts are in the process of collection actions in the courts. Clients in this group that are still active buy from Braskem and pay in advance.
Default indicators
|
Last 12 months | ||
|
Domestic |
|
Export |
|
Market |
|
Market |
June 30, 2017 |
0.49% |
|
0.08% |
December 31, 2016 |
0.18% |
|
0.04% |
June 30, 2016 |
0.27% |
|
0.10% |
41
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b) Other financial assets
In order to determine the credit ratings of counterparties in financial assets classified as cash and cash equivalents, held-for-trading, held-to-maturity and loans and receivables, Braskem uses credit rating from the following agencies: Standard & Poor’s, Moody’s and Fitch Ratings within the limits established in its financial policy approved by the Board of Directors.
Jun/2017 |
Dec/2016 | ||||
Financial assets with risk assessment |
| ||||
AAA |
4,288,374 |
3,871,105 | |||
AA+ |
3,362 |
241,359 | |||
AA |
60,023 |
5,370 | |||
AA- |
638,249 |
654,232 | |||
A+ |
1,601,138 |
2,426,078 | |||
A |
1,521,426 |
364,198 | |||
A- |
147,455 |
209,175 | |||
BBB+ |
3,060 |
116,987 | |||
BBB |
122,538 |
- | |||
8,385,625 |
7,888,504 | ||||
Financial assets without risk assessment |
|||||
Other financial assets with no risk assessment |
(i) |
3,644 |
3,843 | ||
3,644 |
3,843 | ||||
Total |
8,389,269 |
7,892,347 |
(i) Investments approved by the Management of the Company, as permitted by the financial policy.
15.5. Sensitivity analysis
Financial instruments, including derivatives, may be subject to changes in their fair value as a result of the variation in commodity prices, foreign exchange rates, interest rates, shares and share indexes, price indexes and other variables. The sensitivity of the derivative and non-derivative financial instruments to these variables are presented below:
(a) Selection of risks
On June 30, 2017, the main risks that can affect the value of Braskem’s financial instruments are:
· Brazilian real/U.S. dollar exchange rate;
· Brazilian real/Mexican peso exchange rate;
· Libor floating interest rate;
· Selic interest rate;
· CDI interest rate; and
· TJLP interest rate.
For the purposes of the risk sensitivity analysis, Braskem presents the exposures to currencies as if they were independent, that is, not reflecting in the exposure to a foreign exchange rate the risks of the variation in other foreign exchange rates that could be directly influenced by it.
42
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b) Value at risk
The value at risk of the derivatives held by Braskem which is defined as the loss that could result in one month as from June 30, 2017, with a probability of 5%, and under normal market conditions, was estimated by the Company at US$28,144 for the NCE exchange rate swap (Note 15.2.1(a.ii)) and at US$2,489 for put and call options (Note 15.2.1(a.i)) and null for the swap of Libor related to Braskem Idesa’s project.
(c) Selection of scenarios
(c.1) Probable scenario
The Market Readout published by the Central Bank of Brazil was used to create the probable scenario for the U.S. dollar/Brazilian real exchange rate, Selic basic interest rate and the CDI interest rate, using the reference date of June 30, 2017. According to the Market Readout, at the end of 2017, the U.S. dollar will appreciate by 1.2% against the Brazilian real, compared to the closing PTAX rate at June 30, 2017, while the Selic rate will be 8.5% p.a. The Selic rate is used as a reference for analyses of sensitivity to the CDI.
The probable scenario for the TJLP is a decrease of 0.50% from the current rate of 7.0%, in line with the size of the government’s most recent decisions to increase or decrease the rate. The Market Readout does not publish forecasts for the Libor interest rate. Therefore, to determine the probable scenario, Braskem considered a 5% increase on current market levels.
43
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(c.2) Possible and extreme adverse scenarios
The sensitivity values in the table below are the changes in the value of the financial instruments in each scenario:
Gain (losses) | ||||||
Possible adverse |
Extreme adverse | |||||
Instrument / Sensitivity |
Probable |
(25%) |
(50%) | |||
Brazilian real/U.S. dollar exchange rate |
||||||
Bonds |
(177,707) |
(3,516,094) |
(7,032,189) | |||
BNDES |
(1,905) |
(37,695) |
(75,391) | |||
Working capital / structured operations |
(33,544) |
(663,707) |
(1,327,415) | |||
Export prepayments |
(7,331) |
(145,053) |
(290,107) | |||
Braskem Idesa borrowings |
(128,827) |
(2,548,956) |
(5,097,911) | |||
Financial investments abroad |
(19,097) |
(377,850) |
(755,700) | |||
Swaps |
(21,787) |
(431,094) |
(840,350) | |||
Dollar put option |
(1,852) |
(25,013) |
(77,752) | |||
Financial investments abroad |
36,103 |
714,331 |
1,428,662 | |||
Selic interest rate |
||||||
BNDES |
33,842 |
(52,500) |
(108,648) | |||
Libor floating interest rate |
||||||
Working capital / structured operations |
(643) |
(3,217) |
(6,433) | |||
Export prepayments |
(2,251) |
(11,254) |
(22,508) | |||
Swaps |
2,060 |
10,233 |
20,300 | |||
CDI interest rate |
||||||
Swaps NCE |
|
32,076 |
(48,179) |
(97,805) | ||
Swaps NCA |
|
60,205 |
(94,454) |
(196,790) | ||
Financial investments in local currency |
|
(30,308) |
43,974 |
87,479 | ||
|
|
|
| |||
Probable |
Possible adverse |
Extreme adverse | ||||
Instrument / Sensitivity |
6.5% |
7.5% |
8.0% | |||
TJLP interest rate |
||||||
BNDES |
|
26,540 |
(26,993) |
(54,443) | ||
Other government agents |
|
37 |
(37) |
(75) |
44
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
16. Taxes payable
The information related to taxes payable was presented in the Company’s 2016 annual financial statements, in Note 18.
|
|
Consolidated |
|
|
Parent company | ||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | ||||||
Brazil |
|||||||||
IPI |
65,110 |
59,323 |
61,715 |
57,191 | |||||
IR and CSL |
219,653 |
222,680 |
117,206 |
119,573 | |||||
ICMS |
211,500 |
182,034 |
200,441 |
173,915 | |||||
PIS and COFINS |
98,816 |
59,105 |
97,784 |
58,252 | |||||
Other |
50,103 |
62,743 |
29,661 |
38,987 | |||||
Other countries |
|||||||||
IR |
214,252 |
46,670 |
- |
- | |||||
Value-added tax |
128,670 |
15,622 |
- |
- | |||||
Total |
988,104 |
648,177 |
506,807 |
447,918 | |||||
Current liabilities |
947,680 |
624,080 |
467,135 |
424,088 | |||||
Non-current liabilities |
40,424 |
24,097 |
39,672 |
23,830 | |||||
Total |
988,104 |
648,177 |
506,807 |
447,918 |
17. Income tax (“IR”) and social contribution (“CSL”)
The information related to income tax and social contribution was presented in the Company’s 2016 annual financial statements, in Note 20.
(a) Reconciliation of the effects of income tax and social contribution on profit or loss
Consolidated |
Parent company | |||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | |||||||
Restated |
Restated | |||||||||
Income before IR and CSL |
4,156,758 |
1,515,213 |
3,462,324 |
1,284,214 | ||||||
IR and CSL at the rate of 34% |
(1,413,298) |
(515,172) |
(1,177,190) |
(436,633) | ||||||
Permanent adjustments to the IR and CSL calculation basis |
||||||||||
IR and CSL on equity in results of investees |
4,151 |
4,548 |
545,318 |
362,689 | ||||||
Tax loss and negative basis - Installment Rectification |
38,403 |
- |
- |
- | ||||||
Tax benefits (Sudene and PAT) |
41,654 |
- |
41,586 |
- | ||||||
Difference of rate applicable to each country |
166,406 |
(4,335) |
- |
- | ||||||
Other permanent adjustments |
53,721 |
51,734 |
16,486 |
(390) | ||||||
IR and CSL on results of operations |
(1,108,963) |
(463,225) |
(573,800) |
(74,334) | ||||||
Breakdown of IR and CSL: |
||||||||||
Current IR and CSL |
(363,969) |
(551,597) |
(85,074) |
(35,354) | ||||||
Deferred IR and CSL |
(744,994) |
88,372 |
(488,726) |
(38,980) | ||||||
Total |
(1,108,963) |
(463,225) |
(573,800) |
(74,334) | ||||||
45
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b) Breakdown of deferred income tax and social contribution
(b.i) According to tax collection records
Consolidado |
Controladora | ||||||||
Assets |
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | |||||
|
| ||||||||
Tax losses (IR) and negative base (CSL) |
1,864,478 |
2,420,376 |
161,295 |
215,413 | |||||
Goodwill amortized |
4,270 |
4,624 |
4,270 |
4,623 | |||||
Exchange variations |
255,357 |
464,947 |
249,746 |
456,816 | |||||
Temporary adjustments |
336,775 |
717,868 |
1,018,467 |
1,339,681 | |||||
Business combination |
192,101 |
191,250 |
89,770 |
89,770 | |||||
2,652,981 |
3,799,065 |
1,523,548 |
2,106,303 | ||||||
Liabilities |
- |
- |
- |
- | |||||
- |
- |
- |
- | ||||||
Amortization of goodwill based on future profitability |
783,659 |
767,277 |
696,492 |
680,111 | |||||
Tax depreciation |
919,228 |
867,922 |
840,823 |
792,869 | |||||
Temporary adjustments |
313,414 |
316,991 |
8,188 |
11,701 | |||||
Business combination |
179,353 |
198,381 |
61,390 |
76,959 | |||||
Additional indexation PP&E |
54,325 |
118,202 |
54,325 |
96,700 | |||||
Amortization of fair value adjustments on |
398,904 |
263,808 |
398,904 |
266,004 | |||||
Other |
3,506 |
123,892 |
3,516 |
139,500 | |||||
2,652,389 |
2,656,473 |
2,063,638 |
2,063,844 |
(b.ii) Offset for the purpose of presentation in the balance sheet (consolidated)
Jun/2017 | |||||||||||
Headquarters |
|
|
|
IR and CSL |
|
| |||||
(Country) |
Tax calculation |
Compensation |
Balance | ||||||||
Assets |
|||||||||||
Braskem S.A |
Brazil |
1,523,548 |
(1,523,548) |
- | |||||||
Braskem Chile |
Chile |
90 |
- |
90 | |||||||
Braskem Argentina |
Argentina |
4,291 |
- |
4,291 | |||||||
Braskem Alemanha |
Germany |
25,420 |
- |
25,420 | |||||||
Braskem Idesa |
Mexico |
892,582 |
- |
892,582 | |||||||
Braskem México Serviços |
Mexico |
1,613 |
- |
1,613 | |||||||
Braskem Petroquímica |
Brazil |
103,105 |
(103,105) |
- | |||||||
Braskem Petroquímica - business combination effects |
Brazil |
102,332 |
- |
102,332 | |||||||
2,652,981 |
(1,626,653) |
1,026,328 | |||||||||
Liabilities |
|||||||||||
Braskem S.A |
Brazil |
2,063,638 |
(1,523,548) |
540,090 | |||||||
Braskem America |
USA |
305,228 |
- |
305,228 | |||||||
Braskem Petroquímica |
Brazil |
165,562 |
(103,105) |
62,457 | |||||||
Braskem Petroquímica - business combination effects |
Brazil |
117,961 |
- |
117,961 | |||||||
2,652,389 |
(1,626,653) |
1,025,736 |
46
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
Dec/2016 | |||||||||||
Headquarters |
|
|
IR and CSL |
| |||||||
(Country) |
Tax calculation |
Compensation |
Balance | ||||||||
Assets |
|||||||||||
Braskem S.A |
Brazil |
2,106,303 |
(2,063,844) |
42,459 | |||||||
Braskem Argentina |
Argentina |
6,745 |
- |
6,745 | |||||||
Braskem Alemanha |
Germany |
36,932 |
- |
36,932 | |||||||
Braskem Chile |
Chile |
135 |
(135) |
- | |||||||
Braskem Idesa |
Mexico |
1,463,502 |
- |
1,463,502 | |||||||
Braskem México Serviços |
Mexico |
1,994 |
- |
1,994 | |||||||
Braskem Petroquímica |
Brazil |
81,971 |
(81,971) |
- | |||||||
Braskem Petroquímica and Braskem Qpar - business combination effects |
Brazil |
101,483 |
- |
101,483 | |||||||
3,799,065 |
(2,145,950) |
1,653,115 | |||||||||
Liabilities |
|||||||||||
Braskem S.A |
Brazil |
2,063,844 |
(2,063,844) |
- | |||||||
Braskem America |
USA |
305,289 |
- |
305,289 | |||||||
Braskem Chile |
Chile |
1,404 |
(135) |
1,269 | |||||||
Braskem Petroquímica |
Brazil |
162,241 |
(81,971) |
80,270 | |||||||
Braskem Petroquímica and Braskem Qpar - business combination effects |
Brazil |
123,695 |
- |
123,695 | |||||||
2,656,473 |
(2,145,950) |
510,523 |
(c) Realization of deferred income tax and social contribution
In the six-month period ended June 30, 2017, there were no material events or circumstances that indicate any compromise of the realization of these deferred taxes.
18. Sundry provisions
The information on sundry provisions was presented in the 2016 annual financial statements of the Company, in Note 22.
Consolidated |
Parent company | |||||||||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | |||||||||
Provision for customers rebates |
32,123 |
41,475 |
8,508 |
24,167 | ||||||||
Provision for recovery of environmental damages |
229,397 |
254,040 |
206,089 |
228,618 | ||||||||
Other |
24,455 |
23,621 |
4,334 |
3,798 | ||||||||
Total |
285,975 |
319,136 |
218,931 |
256,583 | ||||||||
Current liabilities |
78,875 |
112,891 |
48,896 |
87,084 | ||||||||
Non-current liabilities |
207,100 |
206,245 |
170,035 |
169,499 | ||||||||
Total |
285,975 |
319,136 |
218,931 |
256,583 |
47
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
19. Contingencies
19.1. Claims with probable loss and arising from business combinations
The description of the main contingent liabilities of the Company was presented in the 2016 annual financial statements, in Note 23.1.
Consolidated |
Parent company | ||||||||
Jun/2017 |
Dec/2016 |
Jun/2017 |
Dec/2016 | ||||||
Labor claims |
200,193 |
207,827 |
190,847 |
197,452 | |||||
Tax claims |
|||||||||
Normal operations |
|||||||||
IR and CSL |
14,044 |
11,462 |
11,782 |
11,462 | |||||
PIS and COFINS |
208,444 |
204,516 |
208,254 |
204,333 | |||||
ICMS |
44,067 |
39,604 |
44,067 |
39,604 | |||||
Other tax claims |
18,578 |
19,586 |
18,577 |
17,382 | |||||
285,133 |
275,168 |
282,680 |
272,781 | ||||||
Business Combination |
|||||||||
IR and CSL |
48,158 |
45,656 |
- |
- | |||||
PIS and COFINS |
53,947 |
51,052 |
53,947 |
51,052 | |||||
ICMS - interstate purchases |
235,859 |
223,071 |
235,859 |
223,071 | |||||
ICMS - other |
17,308 |
16,379 |
17,308 |
16,379 | |||||
355,272 |
336,158 |
307,114 |
290,502 | ||||||
Corporate claims |
110,084 |
105,175 |
110,084 |
105,175 | |||||
- |
- |
- |
- | ||||||
Civil claims and other |
65,200 |
60,909 |
65,201 |
60,909 | |||||
1,015,882 |
985,237 |
955,926 |
926,819 |
19.2. Claims with possible losses
The amount of claims and a description of the main claims with possible losses are presented in the financial statements for fiscal year 2016, in Note 23.2.
(a) Civil claims
In January 2017, the Company became defendant in a civil lawsuit filed by former reseller of solvents, claiming alleged breach of a tacit distribution agreement. On June 30, 2017, the damages claimed in the lawsuit amounted to R$140 million.
Based on the opinion of external legal counsel accompanying the case, the Management believes that the lawsuit has a possible risk of loss within an eight-year period.
No judicial deposit or other form of security was made for these suits.
(b) Tax claims
In March 2017, the Company received a tax deficiency notice claiming that the methodology used to offset tax losses and tax loss carryforwards at Rio Polímeros failed to observe the limit of 30% of the Taxable Profit and Social Contribution calculation base when offsetting such liabilities with Income Tax and Social Contribution liabilities in its merger into Braskem Qpar S/A, in August 2013. On June 30, 2017, the restated value of the taxes recorded amounted to R$247 million.
48
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
The Company’s external legal advisors estimate that the administrative proceedings should be concluded by 2020.
Considering that the requirement to pay the tax liability has been suspended, currently no administrative, escrow or other type of guarantee deposit has been made for this proceeding.
19.3. Reports of irregularities and global settlement with authorities
Complete information on the reports of irregularities and on the global settlement with authorities was presented in Note 23.3 to the Company’s annual financial statements for 2016.
(a) Global Settlement with authorities
The Leniency Agreement (“Agreement”) with the Federal Prosecution Office (“MPF”) and with U.S. and Swiss authorities (“Global Settlement”), in the approximate amount of US$957 million (approximately R$3.1 billion), were definitively ratifying in the following manner:
1. In Brazil, the Agreement was ratified by the 5th Coordination and Review Chamber of the MPF on December 15, 2016 and on June 6, 2017 by the Judge of the 13th Federal Court of Curitiba.
2. The agreement with U.S. Department of Justice (“DoJ”) was confirmed by sentence by the American justice on January 26, 2017.
3. The U.S. Securities and Exchange Commission (“SEC”) confirmed the agreement on February 28, 2017.
4. The agreement with Swiss authorities did not require ratification to produce effect.
Of the total amount of the Global Agreement, the Company has already paid approximately R$1.3 billion in the following manner:
1. US$94,894 (R$296,591) to DoJ on February 8, 2017;
2. US$65,000 (R$206,460) to SEC on April 27, 2017;
3. CHF30,240 (R$104,307) to the Office of the Attorney General of Switzerland on June 27, 2017;
4. R$736,445 to MPF on July 6, 2017.
The outstanding amount of approximately R$1.7 billion will be paid in the following manner:
1. CHF64,260 to the Office of the Attorney General of Switzerland in four equal annual and successive installments of CHF16,065 due on June 30 of each year as from 2018;
2. R$1.5 billion to MPF in six annual installments adjusted for inflation by the variation in the IPCA inflation index due on January 30 of each year as from 2018. To guarantee payment of the installments coming due, Braskem offered fixed assets in an amount corresponding to one annual installment.
(b) Reimbursement for damages and other considerations
A significant portion of the total amount of R$$2.2 billion to be paid to MPF will be made available for use in reimbursing third parties for any damages caused by the wrongdoings.
Under the Agreement, the MPF undertook to coordinate actions with other authorities or government agencies with which Braskem comes to negotiate for entering into agreements involving the facts uncovered in connection with the Agreement, the public prosecution offices of states and cities in Brazil, state-owned companies and state-controlled companies for entering into similar agreements with such organizations, including for the purpose of preventing duplicate restitution with regard to the amount paid under the Agreement.
49
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
The Agreement does not prevent any third party from filing proceedings to seek reimbursement for any damages caused by Braskem, which could result in payments other than those provided for in the Agreement. Therefore, the Company cannot guarantee that the total amount available for reimbursement will be sufficient to fully reimburse any third parties affected by the wrongdoings, which means that the Company may be subject to the payment of damages or financial penalties other than those provided for in the Global Settlement.
With the exception of the amount mentioned above, as well as of the other non-monetary obligations imposed on the Company under the Global Settlement, it may have a material adverse effect on our business, reputation, financial condition, financial instruments and operational results, as well as on the liquidity and price of the securities of Braskem. Furthermore, the negative publicity resulting from the Global Settlement, could have a material adverse impact on our businesses, including reducing the demand for our products, our financial instruments and other effects that currently cannot be estimated or measured. In addition, other authorities with jurisdiction over our company may seek to impose additional monetary sanctions or fines or commence new investigations against us. Finally, as a result of the Global Settlement, the Company may be barred from entering into certain agreements with government authorities and may be subject to increased operating costs in connection with its obligations to improve its governance and anti-corruption practices, including the cost of the external monitorship.
It is not possible to predict the impacts on Braskem of others investigations or of any decision or action taken by authorities involving its largest shareholders, namely Odebrecht S.A. and Petróleo Brasileiro S.A. – Petrobras, or any of their subsidiaries.
(c) Control deficiencies and Compliance Program
Based upon the investigative process and the confirmation of illicit acts, the Company identified material deficiencies within its internal controls.
A broad Compliance Program was launched in 2016 to strengthen its governance to significantly reduce the likelihood of other deviations of the same nature occur again.
A series of actions have been implemented and reported periodically.
In the period ended June 30, 2017, several compliance initiatives were completed, including:
(i) | Increase in the number of Compliance staff members for the Internal Control, Risk Management, Compliance and Internal Audit areas, with emphasis on hiring Compliance Officers for the United States and Mexico; |
(ii) | Appointment and hiring of independent monitors with the DoJ and MPF; |
(iii) | Approval of the following documentation: Internal Audit Directive, Corporate Credit Card Directive and Research Protocols for Ethics Line; |
(iv) | Continuation of the training program, focusing on the Compliance System, applicable laws and awareness; |
(v) | Definition of the corporate goal related to Compliance applicable to all company leaders; |
(vi) | Approval of the Multi-Year Global Compliance Communication Plan; |
(vii) | Elaboration of the Procedure for Relations with Public Agents, regulating interactions with politicians and executives of public companies; |
50
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
(viii) Formal and effective participation in working groups: UN Anti-Corruption and ETHOS Integrity;
(ix) Improvement in the processes of suppliers’ registration and homologation with implementation of risk assessment and third-party integrity;
(x) Creation of the Procedure for Payment of Commissions to Agents;
(xi) Development of the Communication Plan, disseminating the Company's commitment to conduct Business with Ethics, Integrity and Transparency;
(xii) Submission of the questionnaire and documentation for the Company's participation in the 2017 Pro-Ethics evaluation process, through which the effectiveness of the Compliance System is monitored;
(xiii) Elaboration of the Ethics Line Procedure, considering the formal process of handling and treating denunciations and investigation protocols;
(xiv) Outsourcing of the Ethics Line and improvement of the tool used to receive complaints;
(xv) Mapping of risks and controls for the most relevant corporate processes in Brazil, USA, Mexico, Netherlands and Germany;
(xvi) Review of corporate guiding documentation (policies, directives, procedures, etc.).
(d) Class actions
On July 1, 2015, a putative class action lawsuit was filed against the Company and its certain of its current and former officers in the United States District Court for the Southern District of New York. In the operative complaint, the Lead Plaintiff, Boilermaker-Blacksmith National Pension Trust, alleges that the Defendants made misrepresentations or omissions that inflated the price of the Company's stock in violation of U.S. securities laws. The Company has engaged a U.S. law firm to represent it and filed motion to dismiss on July 6, 2016.
On March 31, 2017, the judge rendered a decision on the motion to dismiss granting it in part and denying it in part. With respect to the remaining claims, the class action is now in the discovery stage.
The Company cannot foresee the outcome of this process. The Company may be named as a defendant in other legal actions. Furthermore, the Company may be required, in accordance with any applicable legal and regulatory limits, to indemnify directors, officers and employees that are defendants in the securities class action and any other related actions that may arise in the future. The litigation has required significant time and dedication of the Management of the Company and is expected to continue to require such time and attention in the future.
51
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
20. Shareholders’ Equity
The information related to the Company’s shareholders’ equity was presented in its 2016 annual financial statements, in Note 26.
(a) Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of shares | |||
Preferred |
Preferred |
||||||||||||||||
Common |
shares |
shares |
|||||||||||||||
shares |
% |
class A |
% |
class B |
% |
Total |
% | ||||||||||
Odebrecht |
226,334,623 |
50.11 |
79,182,498 |
22.95 |
- |
- |
305,517,121 |
38.32 | |||||||||
Petrobras |
212,426,952 |
47.03 |
75,761,739 |
21.96 |
- |
- |
288,188,691 |
36.15 | |||||||||
ADR |
(i) |
- |
0.00% |
54,996,724 |
15.94 |
- |
- |
54,996,724 |
6.90 | ||||||||
Other |
12,907,077 |
2.86 |
133,834,903 |
38.79 |
578,330 |
100.00 |
147,320,310 |
18.48 | |||||||||
Total |
451,668,652 |
100.00 |
343,775,864 |
99.64 |
578,330 |
100.00 |
796,022,846 |
99.85 | |||||||||
Treasury shares |
(ii) |
- |
- |
1,234,758 |
0.36 |
- |
- |
1,234,758 |
0.15 | ||||||||
Total |
451,668,652 |
100.00 |
345,010,622 |
100.00 |
578,330 |
100.00 |
797,257,604 |
100.00 |
(i) American Depositary Receipts traded on the New York Stock Exchange (USA);
(ii) Includes 1,154,758 shares held by Braskem Petroquímica, considered “treasury shares” in the consolidated shareholders’ equity, amounting to R$48,892.
(b) Other comprehensive income - shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated | |||
Attributed to shareholders' interest |
|||||||||||||||||||||
Defined |
Foreign |
||||||||||||||||||||
Additional |
Deemed |
benefit |
Foreign |
currency |
Gain (loss) |
Total |
|||||||||||||||
indexation of |
cost of |
plans actuarial |
sales |
Fair value |
translation |
on interest |
Braskem |
Non-controlling |
|||||||||||||
PP&E |
PP&E |
Gain (loss) |
hedge |
of hedge |
adjustment |
in subsidiary |
shareholders' |
interest in |
|||||||||||||
(i) |
(i) |
(ii) |
(iii) |
(iii) |
(iv) |
(v) |
interest |
Braskem Idesa |
Total | ||||||||||||
On December 31, 2015 |
217,595 |
17,309 |
(39,232) |
(9,666,973) |
(685,396) |
1,105,391 |
(9,404) |
(9,060,710) |
(476,708) |
(9,537,418) | |||||||||||
Additional indexation |
|||||||||||||||||||||
Realization |
(20,635) |
- |
- |
- |
- |
- |
- |
(20,635) |
- |
(20,635) | |||||||||||
Income tax and social contribution |
7,016 |
- |
- |
- |
- |
- |
- |
7,016 |
- |
7,016 | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Deemed cost of jointly-controlled investment |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Realization |
- |
(730) |
- |
- |
- |
- |
- |
(730) |
- |
(730) | |||||||||||
Income tax and social contribution |
- |
248 |
- |
- |
- |
- |
- |
248 |
- |
248 | |||||||||||
- |
- |
- |
- |
- |
- |
# |
- |
- |
- |
- | |||||||||||
Foreign sales hedge |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Exchange rate |
- |
- |
- |
3,613,180 |
- |
- |
- |
3,613,180 |
(273,493) |
3,339,687 | |||||||||||
Transfer to result |
- |
- |
- |
777,966 |
- |
- |
- |
777,966 |
3,574 |
781,540 | |||||||||||
Income tax and social contribution |
- |
- |
- |
(1,522,163) |
- |
- |
- |
(1,522,163) |
82,048 |
(1,440,115) | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Fair value of Cash flow hedge |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Change in fair value |
- |
- |
- |
- |
239,487 |
- |
- |
239,487 |
(38,128) |
201,359 | |||||||||||
Transfer to result |
- |
- |
- |
- |
(14,876) |
- |
- |
(14,876) |
(6,652) |
(21,528) | |||||||||||
Income tax and social contribution |
- |
- |
- |
- |
(81,741) |
- |
- |
(81,741) |
13,434 |
(68,307) | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Fair value of cash flow hedge from jointly-controlled |
- |
- |
- |
- |
(12,765) |
- |
- |
(12,765) |
- |
(12,765) | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
(215,975) |
- |
(215,975) |
191,986 |
(23,989) | |||||||||||
On June 30, 2016 |
203,976 |
16,827 |
(39,232) |
(6,797,990) |
(555,291) |
889,416 |
(9,404) |
(6,291,698) |
(503,939) |
(6,795,637) | |||||||||||
On December 31, 2016 |
190,359 |
16,344 |
(43,351) |
(7,105,377) |
(539,518) |
1,169,088 |
(9,404) |
(6,321,859) |
(548,601) |
(6,870,460) | |||||||||||
Additional indexation |
|||||||||||||||||||||
Realization |
(20,437) |
- |
- |
- |
- |
- |
- |
(20,437) |
- |
(20,437) | |||||||||||
Income tax and social contribution |
6,949 |
- |
- |
- |
- |
- |
- |
6,949 |
- |
6,949 | |||||||||||
- |
# |
- |
0 |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||
Deemed cost of jointly-controlled investment |
- |
# |
- |
0 |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
Realization |
- |
(730) |
- |
- |
- |
- |
- |
(730) |
- |
(730) | |||||||||||
Income tax and social contribution |
- |
248 |
- |
- |
- |
- |
- |
248 |
- |
248 | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Foreign sales hedge |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Exchange rate |
- |
- |
- |
822,195 |
- |
- |
- |
822,195 |
350,901 |
1,173,096 | |||||||||||
Transfer to result |
- |
- |
- |
554,394 |
- |
- |
- |
554,394 |
18,478 |
572,872 | |||||||||||
Income tax and social contribution |
- |
- |
- |
(423,715) |
- |
- |
- |
(423,715) |
(110,814) |
(534,529) | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Fair value of Cash flow hedge |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Change in fair value |
- |
- |
- |
- |
(7,979) |
- |
- |
(7,979) |
(880) |
(8,859) | |||||||||||
Transfer to result |
- |
- |
- |
- |
48,227 |
- |
- |
48,227 |
11,799 |
60,026 | |||||||||||
Income tax and social contribution |
- |
- |
- |
- |
(12,374) |
- |
- |
(12,374) |
(3,277) |
(15,651) | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Fair value of cash flow hedge from jointly-controlled |
- |
- |
- |
- |
3,762 |
- |
- |
3,762 |
- |
3,762 | |||||||||||
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | ||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
(175,118) |
- |
(175,118) |
(113,447) |
(288,565) | |||||||||||
On June 30, 2017 |
176,871 |
15,862 |
(43,351) |
(6,152,503) |
(507,882) |
993,970 |
(9,404) |
(5,526,437) |
(395,841) |
(5,922,278) | |||||||||||
(i) |
Transfer to retained earnings as the asset is depreciated or written-off. |
||||||||||||||||||||
(ii) |
Transfer to retained earnings when the extinction of the plan. |
||||||||||||||||||||
(iii) |
Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. |
||||||||||||||||||||
(iv) |
Transfer to the income statement when write-off of subsidiary abroad. |
||||||||||||||||||||
(v) |
Transfer to the income statement when divestment or transfer of control of subsidiary. |
52
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
21. Earnings per share
The table below shows the reconciliation of profit or loss for the period adjusted for the amounts used to calculate basic and diluted earnings per share.
Basic and diluted | ||||||
Jun/2017 |
|
Jun/2016 | ||||
Restated | ||||||
Profit for the period attributed to Company's shareholders |
||||||
of continued operations |
2,888,524 |
1,209,880 | ||||
Distribution of dividends attributable to priority: |
||||||
Preferred shares class "A" |
208,416 |
208,409 | ||||
Preferred shares class "B" |
351 |
360 | ||||
208,767 |
208,769 | |||||
Distribution of 6% of unit value of common shares |
273,827 |
273,824 | ||||
Distribution of plus income, by class: |
||||||
Common shares |
1,366,133 |
412,971 | ||||
Preferred shares class "A" |
1,039,797 |
314,316 | ||||
2,405,930 |
727,287 | |||||
Reconciliation of income available for distribution, by class (numerator): |
||||||
Common shares |
1,639,960 |
686,795 | ||||
Preferred shares class "A" |
1,248,213 |
522,725 | ||||
Preferred shares class "B" |
351 |
360 | ||||
2,888,524 |
1,209,880 | |||||
Weighted average number of shares, by class (denominator): |
||||||
Common shares |
451,668,652 |
451,668,652 | ||||
Preferred shares class "A" |
343,775,864 |
343,768,220 | ||||
Preferred shares class "B" |
578,330 |
593,618 | ||||
796,022,846 |
796,030,490 | |||||
Profit per share (in R$) |
||||||
Common shares |
3.6309 |
1.5206 | ||||
Preferred shares class "A" |
3.6309 |
1.5206 | ||||
Preferred shares class "B" |
0.6069 |
0.6065 |
53
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
22. Net sales revenues
Consolidated |
Parent company | ||||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | ||||||||
Sales revenue |
Restated |
Restated | |||||||||
Domestic market |
17,004,059 |
15,918,691 |
17,892,569 |
16,618,288 | |||||||
Foreign market |
11,778,506 |
11,430,701 |
4,780,739 |
4,882,840 | |||||||
28,782,565 |
27,349,392 |
22,673,308 |
21,501,128 | ||||||||
Sales and services deductions |
|||||||||||
Taxes |
|||||||||||
Domestic market |
(4,158,457) |
(3,476,669) |
(4,284,054) |
(3,586,772) | |||||||
Foreign market |
(15,165) |
(13,456) |
- |
- | |||||||
Costumers rebates |
|||||||||||
Domestic market |
(3,415) |
(21,763) |
(2,780) |
(21,763) | |||||||
Foreign market |
(24,655) |
(26,699) |
(140) |
(837) | |||||||
Sales returns |
|||||||||||
Domestic market |
(61,683) |
(145,720) |
(61,434) |
(115,842) | |||||||
Foreign market |
(49,032) |
(28,553) |
(3,401) |
(10,910) | |||||||
(4,312,407) |
(3,712,860) |
(4,351,809) |
(3,736,124) | ||||||||
Net sales and services revenue |
24,470,158 |
23,636,532 |
18,321,499 |
17,765,004 |
23. Other net income (expenses)
Note |
|
|
Consolidated | |||
Jun/2017 |
Jun/2016 | |||||
Restated | ||||||
Participation of members in profits and results |
(i) |
(174,133) |
(183,872) | |||
Expense and depreciation with hibernate plants |
- |
(97,724) |
(100,613) | |||
Expenses from fixed assets |
- |
(30,911) |
(30,575) | |||
Capital gain - sale of Quantiq |
3 |
276,816 |
- | |||
Other |
- |
42,759 |
(48,445) | |||
16,807 |
(363,505) | |||||
(i) In the period ended June 30, 2016, the amounts related to this item were reclassified from “costs of goods sold” (R$83,363), “selling and distribution expenses” (R$3,994) and “general and administrative expenses” (R$96,515) (Note 2.5(b)).
54
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
24. Financial results
Consolidated |
Parent company | |||||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | |||||||||
Financial income |
Restated |
Restated | ||||||||||
Interest income |
286,111 |
352,879 |
264,281 |
297,170 | ||||||||
Other |
30,419 |
22,876 |
23,741 |
21,531 | ||||||||
316,530 |
375,755 |
288,022 |
318,701 | |||||||||
Financial expenses |
||||||||||||
Interest expenses |
(1,147,962) |
(1,192,252) |
(780,105) |
(1,009,122) | ||||||||
Monetary variations on fiscal debts |
(46,365) |
(45,433) |
(43,933) |
(43,096) | ||||||||
Discounts granted |
(60,255) |
(54,182) |
(58,310) |
(45,148) | ||||||||
Loans transaction costs - amortization |
(25,469) |
(29,392) |
(2,334) |
(2,611) | ||||||||
Adjustment to present value - appropriation |
(174,589) |
(273,615) |
(130,370) |
(256,787) | ||||||||
Other |
(201,447) |
(97,285) |
(92,662) |
(52,475) | ||||||||
(1,656,087) |
(1,692,159) |
(1,107,714) |
(1,409,239) | |||||||||
Exchange rate variations, net |
||||||||||||
On financial assets |
209,373 |
(1,010,274) |
248,529 |
(1,613,308) | ||||||||
On financial liabilities |
67,231 |
(1,052,418) |
(659,932) |
27,113 | ||||||||
276,604 |
(2,062,692) |
(411,403) |
(1,586,195) | |||||||||
Total |
(1,062,953) |
(3,379,096) |
(1,231,095) |
(2,676,733) |
25. Expenses by nature and function
Consolidated |
Parent company | ||||||||||
Jun/2017 |
Jun/2016 |
Jun/2017 |
Jun/2016 | ||||||||
Classification by nature: |
|||||||||||
Raw materials other inputs |
(14,509,167) |
(13,773,204) |
(11,928,164) |
(11,126,232) | |||||||
Personnel expenses |
(1,074,155) |
(1,151,829) |
(836,106) |
(884,957) | |||||||
Outsourced services |
(986,094) |
(965,353) |
(698,126) |
(681,575) | |||||||
Depreciation, amortization and depletion |
(1,424,202) |
(1,241,299) |
(921,386) |
(1,030,708) | |||||||
Freights |
(1,011,658) |
(1,008,150) |
(658,909) |
(735,962) | |||||||
Other expenses, net |
(268,022) |
(615,765) |
(158,750) |
(411,353) | |||||||
Total |
(19,273,298) |
(18,755,600) |
(15,201,441) |
(14,870,787) | |||||||
Classification by function: |
|||||||||||
Cost of products sold |
(17,890,990) |
(17,074,199) |
(14,318,463) |
(13,763,940) | |||||||
Selling and distribution |
(704,586) |
(648,644) |
(449,130) |
(451,556) | |||||||
General and administrative |
(622,384) |
(586,624) |
(427,875) |
(348,932) | |||||||
Research and development |
(72,145) |
(82,628) |
(49,961) |
(50,718) | |||||||
Other income (expenses), net |
16,807 |
(363,505) |
43,988 |
(255,641) | |||||||
Total |
(19,273,298) |
(18,755,600) |
(15,201,441) |
(14,870,787) | |||||||
55
Braskem S.A.
Notes to the financial statements
at June 30, 2017
All amounts in thousands of reais, unless otherwise stated
26. Segment information
The information by segment was presented in the 2016 annual financial statements, in Note 33.
|
|
|
|
|
|
|
|
|
|
|
|
Jun/2017 | |||
Operating expenses |
|||||||||||||||
Net |
Cost of |
Selling, general |
Results from |
||||||||||||
sales |
products |
Gross |
and distribuition |
equity |
Other income |
Consolidated | |||||||||
revenue |
sold |
profit |
expenses |
investments |
(expenses), net |
Braskem | |||||||||
Reporting segments |
|||||||||||||||
Basic petrochemicals |
12,514,921 |
(10,166,902) |
2,348,019 |
(376,465) |
- |
(79,907) |
1,891,647 | ||||||||
Polyolefins |
9,705,309 |
(7,603,727) |
2,101,582 |
(639,369) |
- |
(62,170) |
1,400,043 | ||||||||
Vinyls |
1,457,179 |
(1,252,403) |
204,776 |
(76,209) |
- |
(50,072) |
78,495 | ||||||||
USA and Europe |
4,734,490 |
(3,577,997) |
1,156,493 |
(296,192) |
- |
(1,545) |
858,756 | ||||||||
Mexico |
1,821,095 |
(1,025,393) |
795,702 |
(134,618) |
- |
(23,712) |
637,372 | ||||||||
Total |
30,232,994 |
(23,626,422) |
6,606,572 |
(1,522,853) |
- |
(217,406) |
4,866,313 | ||||||||
Other segments |
7,220 |
(8,659) |
(1,439) |
(129) |
- |
(1,639) |
(3,207) | ||||||||
Corporate unit |
- |
- |
- |
63,612 |
22,851 |
235,852 |
(i) |
322,315 | |||||||
Braskem consolidated before |
30,240,214 |
(23,635,081) |
6,605,133 |
(1,459,370) |
22,851 |
16,807 |
5,185,421 | ||||||||
Eliminations and reclassifications |
(5,770,056) |
5,744,091 |
(25,965) |
60,255 |
- |
- |
34,290 | ||||||||
Total |
24,470,158 |
(17,890,990) |
6,579,168 |
(1,399,115) |
22,851 |
16,807 |
5,219,711 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Jun/2017 | |||
Operating expenses |
|||||||||||||||
Net |
Cost of |
Selling, general |
Results from |
||||||||||||
sales |
products |
Gross |
and distribuition |
equity |
Other income |
Consolidated | |||||||||
revenue |
sold |
profit |
expenses |
investments |
(expenses), net |
Braskem | |||||||||
Reporting segments |
|||||||||||||||
Basic petrochemicals |
12,105,795 |
(9,721,997) |
2,383,798 |
(306,891) |
- |
(104,513) |
1,972,394 | ||||||||
Polyolefins |
10,407,556 |
(8,183,726) |
2,223,830 |
(619,844) |
- |
(78,604) |
1,525,382 | ||||||||
Vinyls |
1,482,236 |
(1,393,112) |
89,124 |
(108,571) |
- |
(15,362) |
(34,809) | ||||||||
USA and Europe |
4,832,660 |
(3,077,924) |
1,754,736 |
(219,771) |
- |
(29,865) |
1,505,100 | ||||||||
Mexico |
334,324 |
(263,580) |
70,744 |
(91,797) |
- |
(58,781) |
(79,834) | ||||||||
Total |
29,162,571 |
(22,640,339) |
6,522,232 |
(1,346,874) |
- |
(287,125) |
4,888,233 | ||||||||
Other segments |
6,012 |
(86,116) |
(80,104) |
(48,075) |
- |
20,367 |
(107,812) | ||||||||
Corporate unit |
- |
- |
- |
(64,824) |
13,377 |
(11,279) |
(62,726) | ||||||||
Braskem consolidated before |
29,168,583 |
(22,726,455) |
6,442,128 |
(1,459,773) |
13,377 |
(278,037) |
4,717,695 | ||||||||
Eliminations and reclassifications |
(5,532,051) |
5,652,256 |
120,205 |
141,877 |
- |
(85,468) |
176,614 | ||||||||
Total |
23,636,532 |
(17,074,199) |
6,562,333 |
(1,317,896) |
13,377 |
(363,505) |
4,894,309 |
(i) Includes gain from sale of the former “chemical distribution” segment in the amount of R$276,816 (Note 3).
56
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 17, 2017BRASKEM S.A. | |||
By: | /s/ Pedro van Langendonck Teixeira de Freitas | ||
| |||
Name: | Pedro van Langendonck Teixeira de Freitas | ||
Title: | Chief Financial Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.