(Commission File No. 1-14862 )

¹  Difference between the price of petrochemicals and the price of naphtha, ethane and propane in accordance with the feedstock mix of the units in Brazil.

²   Does not consider the result with discontinued operations.

Brazil:

4   Brazilian demand for resins (PE, PP and PVC) came to 1.2 million tons in 1Q17, growing 5% from 1Q16 and in line with the previous quarter. In the period, the Company’s market share expanded 2 p.p., with total sales of 844 kton, representing increases of 8% and 2% from 1Q16 and 4Q16, respectively, surpassing the Brazilian market’s growth in the period. 

4   In the quarter, the crackers operated at an average capacity utilization rate of 95%, up 6 p.p. from 1Q16 and 5 p.p. from 4Q16, reflecting the good operating performance of all crackers, the normalization of operations at the cracker in Bahia following the scheduled shutdown in 4Q16, the higher supply of local feedstock as well as the delivery of imported ethane from the United States at the Rio de Janeiro cracker.

4   The good operating performance supported basic petrochemical production of 2.2 million tons in the quarter, growing 5% and 2% from 1Q16 and 4Q16, respectively. As a result, resin production came to 1.3 million tons, increasing 9% and 4% compared to 1Q16 and 4Q16, respectively.

4   Braskem’s resin exports in the quarter amounted to 418 kton, increasing 1% in relation to both 1Q16 and 4Q16. Exports of basic petrochemicals came to 334 kton, advancing 27% and 23% from 1Q16 and 4Q16, respectively, and setting a new record for the Company in the quarter.

4   In April, Braskem concluded the sale of its subsidiary quantiQ to GTM, for which it received payment of R$450 million, with the remaining R$100 million to be paid in up to 12 months, subject to adjustments typical to transactions of this kind.

4   In 1Q17, the units in Brazil, including exports, posted EBITDA of R$2,391 million (US$761 million) to account for 68% of the Company’s consolidated EBITDA from all segments.

United States and Europe:

4   In January, the new plant in La Porte, Texas to produce ultra-high molecular weight polyethylene (UHMWPE) started operating, which will enable Braskem to better serve its clients in North America as well as Europe through exports.

4   In the quarter, the PP plants in the United States and Europe operated at an average capacity utilization rate of 101%, increasing 1 p.p. from 1Q16 and 6 p.p. from 4Q16, with the latter increase due to the scheduled shutdown of the Marcus Hook unit in that period. In this scenario, sales in the quarter came to 534 kton, increasing 7% and 6% from 1Q16 and 4Q16, respectively, and setting a new record for the quarter.

4   In 1Q17, the units in the United States and Europe posted EBITDA of US$188 million (R$592 million), representing 17% of the Company’s consolidated EBITDA from all segments.

Mexico:

4   In the quarter, the polyethylene plants operated at an average capacity utilization rate of 97%, 24 p.p. higher than in 4Q16. PE production in the quarter amounted to 250 kton, growing 29% compared to 4Q16, in line with the Company’s plans.

4   PE sales in the quarter came to 264 kton, growing 33% from 4Q16, with 47% of this amount sold in the Mexican market and 53% exported, mainly to Europe and Asia.

4   In 1Q17, EBITDA from the Mexico unit stood at US$171 million (R$536 million), representing 15% of the Company’s consolidated segments.

Compliance:

4   As part of the Company’s ongoing commitment to acting with ethics, transparency and integrity, since last year Braskem launched a Compliance Program with 151 general initiatives. In the quarter, 17 additional compliance initiatives were completed, including:

§   Increasing the number of compliance professionals working in the Internal Controls, Risk Management, Compliance and Internal Audit departments, which included hiring new Chief Compliance Officers in the United States and Mexico.

§   Approving the Global Internal Audit Plan and the launch of fieldwork.

§   Approving the Internal Audit Guidelines, Corporate Credit Card Guidelines and Investigation Protocols – Ethics Hotline.

§   Continuing the training program focused on the Compliance System, applicable legislation and raising awareness.

§   Setting corporate targets related to compliance for all Leaders at the Company.

§   Approving the Global Multi-Year Plan for Compliance Communication.

§   Drafting the Procedure for Relations with Government Officials, which regulates interactions with politicians and executives at state-owned companies.

§   Formal and effective participation in UN Anticorruption and ETHOS Integrity working groups.

§   Enhancement of the supplier registration and approval process by implementing a third-party risk and integrity assessment.

§   In April, were hired two external monitors appointed by the US and Brazilian authorities, who will work together in a coordinated manner, and whose main objective is to confirm that the Company will comply with all the commitments entered into in the Global Agreement.

1.    BRAZIL

Braskem’s results in Brazil are formed by the following segments: Basic Petrochemicals, Polyolefins & Vinyls.

In 1Q17, the segments in Brazil posted net revenue of R$9,536 million and EBITDA of R$2,391 million, accounting for 74% and 68%, respectively, of the Company's consolidated segments.

1.1.         BASIC PETROCHEMICALS

The Basic Petrochemicals segment is formed by and operates four petrochemical complexes (Camaçari, Triunfo, São Paulo and Rio de Janeiro) producing olefins, aromatics and utilities.

These units have total annual ethylene production capacity of 3,952 kton, of which approximately 78% is naphtha-based, 16% is gas-based and the remainder is ethanol-based. Of the total ethylene produced by the Basic Petrochemicals Unit, approximately 80% is transferred for use by Braskem’s Polyolefins and Vinyls units.

Total annual propylene production capacity is 1,585 kton, of which approximately 65% on average is transferred for use by the Company’s Polyolefins segment.

The following table provides a financial overview of this segment:

Capacity Utilization:

The average cracker capacity utilization rate in 1Q17 was 95%, increasing 6 p.p. and 5 p.p. from 1Q16 and 4Q16, respectively. This performance is explained by the good operating performance of all crackers, the normalization of operations at the cracker in Bahia after the scheduled shutdown in 4Q16, and the higher supply of local feedstock as well as the delivery of imported ethane from the United States at the Rio de Janeiro cracker.

Production:

The good operating performance in the quarter supported record-high basic petrochemicals production volume, of 2.2 million tons.

Sales Volume – Brazilian Market:

Basic petrochemicals sales volume to third parties in the Brazilian market came to 451 kton, down 1% from the same period last year, in line with domestic client demand.

Net Revenue – Domestic Market:

Net revenue was US$1,651 million in 1Q17, up 29% from the same period last year, which is basically explained by the higher prices for basic petrochemicals in the international market due to their lower supply in the global market and to healthy operating performance levels. In Brazilian real, net revenue was R$5,190 million, advancing 4% from the same period of 2016.

SG&A Expenses:

In 1Q17, selling, general and administrative expenses came to R$188 million, corresponding to 3% of the segment’s net revenue in the period.

EBITDA:

In 1Q17, EBITDA from Basic Petrochemicals was US$450 million, advancing 42% compared to 1Q16. The highlights in the quarter were: (i) international spreads for basic petrochemicals, particularly butadiene, benzene and cumene, which in relation to 1Q16 increased 474%, 76% and 71%, respectively, according to IHS. In Brazilian real, EBITDA from the Basic Petrochemicals segment was R$1,414 million, increasing 14% compared to 1Q16.

1.2.         POLYOLEFINS

The Polyolefins segment is formed by 18 industrial plants in Brazil producing polyethylene (PE) and polypropylene (PP), which includes the production of Braskem’s Green PE from renewable feedstock.

The industrial operations consist of the PE and PP plants located in the petrochemical complexes of Triunfo, Camaçari, São Paulo, Paulínia and Rio de Janeiro, which have combined annual production capacity of 3,055 kton of PE, with 200 kton of Green PE and 1,850 kton of PP.

In 1Q17, the UTEC business, which previously was part of the Polyolefins segment, became part of the United States and Europe segment.

The following table provides a financial overview of the Polyolefins unit:

Capacity Utilization:

The PE industrial units operated at an average capacity utilization rate of 91% in the quarter, up 8 p.p. from 1Q16, when capacity utilization was affected by the limited supply of ethane to the Rio de Janeiro cracker. Compared to 4Q16, which was affected by a scheduled shutdown on one of the lines at the Bahia cracker, the average capacity utilization rate increased 4 p.p.

The PP industrial units operated at an average capacity utilization rate of 96% in 1Q17, increasing 7 p.p. and 11 p.p. compared to 1Q16 and 4Q16, respectively, due to the higher supply of propylene by Petrobras.

Production:

Due to the higher average capacity utilization, production by the Polyolefins segment came to 1,109 kton in 1Q17.

SG&A Expenses:

In 1Q17, selling, general and administrative expenses amounted to R$331 million, increasing 7% compared to 1Q16, influenced by the higher sales volumes and corresponding to 6.8% of the segment’s net revenue in the period.

EBITDA:

EBITDA in the quarter came to US$249 million, increasing 17% from 1Q16, driven by sales volume growth and higher international spreads for polyolefins. In Brazilian real, EBITDA came to R$781 million, down 6%, influenced by the 20% average Brazilian real appreciation between the periods. EBITDA margin stood at 16%, stable in relation to 1Q16.

1.3.         VINYLS

The Vinyls segment is formed by the industrial and commercial operations of the PVC, Chlorine and Caustic Soda units, as well as other products such as hydrogen and sodium hypochlorite.

The industrial operations include three PVC plants located in the petrochemical complexes in Camaçari and Alagoas and the two chlor-alkali plants located in the same two petrochemical complexes.

The Company’s annual production capacity is 710 kton of PVC and 539 kton of caustic soda.

The following table provides a financial overview of the Vinyls unit:

Capacity Utilization:

The PVC plants operated at an average capacity utilization rate of 90%, 14 p.p. higher than in 1Q16, a period affected by scheduled shutdowns in Alagoas and Bahia. Compared to 4Q16, the average capacity utilization fell by 1 p.p.

Production:

The production of caustic soda was 4% lower than the volume produced in 1Q16. In relation to 4Q16, the volume was 10% lower due to the preparation for the 2Q17 maintenance turnaround in Alagoas.

Brazilian Market:

The estimated PVC market in 1Q17 was 251 kton, in line with the market in 1Q16. Compared to 4Q16, the Brazilian PVC market also remained stable with a 1% drop.

Net Revenue – Domestic Market:

Net revenue in 1Q17 amounted to US$230 million, increasing 37% from 1Q16, driven by sales volume growth and better prices for PVC and Caustic Soda in the international market. In Brazilian real, net revenue from the unit’s domestic sales came to R$722 million, up 10% from the same period last year.

Net Revenue - Export Market:

Net revenue from the segment’s exports grew 18% compared to 1Q16, to US$27 million. In Brazilian real, net revenue was R$86 million, down 5% from 1Q16.

COGS: Ethylene and salt are the main inputs used by the Vinyls segment to produce caustic soda, chlorine and PVC. The ethylene is 100% supplied by the Basic Petrochemicals segment. In salt consumption, Braskem holds significant cost advantages over some competitors thanks to its low-cost extraction of sodium chloride (especially compared to sea salt) and low transportation costs, given its industrial unit’s proximity to the salt mine.

In 1Q17, the unit’s cost of goods sold (COGS) amounted to R$690 million, increasing 3% from 1Q16, influenced by the higher production and sales volume.

SG&A Expenses:

In 1Q17, selling, general and administrative expenses came to R$38 million, down 30% from 1Q16 and corresponding to 4.7% of the segment’s net revenue in the period.

EBITDA:

EBITDA in the quarter was US$47 million, advancing 123% in relation to 1Q16, driven by sales volume growth and better international spreads for PVC. In Brazilian real, EBITDA amounted to R$149 million, up 77% from 1Q16, with EBITDA margin of 18%, expanding 7 p.p..

2.    UNITED STATES AND EUROPE

The segment’s results are formed by six industrial units in the United States and two in Europe, with aggregate annual production capacity of 2,115 kton, with 1,570 kton in the United States and 545 kton in Europe.

In 1Q17, the segment posted net revenue of R$2,425 million (US$771 million) and EBITDA of R$592 million (US$188 million), accounting for 19% and 17%, respectively, of the Company’s consolidated revenue and EBITDA.

The following table provides a financial overview of the United States and Europe segment:

Capacity Utilization:

The segment registered a capacity utilization rate of 101% in 1Q17, increasing 6 p.p. and 1 p.p. from 4Q16 and 1Q16, respectively. The increase compared to 4Q16 is explained by the scheduled shutdown at the Marcus Hook unit in the United States, which included the debottlenecking to expand production capacity at the plant, which restarted operations on the first day of 2017.

Compared to 1Q16, the increase is explained by the excellent operating performance and lack of scheduled or unscheduled maintenance shutdowns at the segment’s units.

United States

Demand in the U.S. PP market was stable in relation to the year-ago period. The increased caution adopted by converters with regard to domestic PP prices led to lower volumes of imported PP goods in the period, which mainly benefitted the consumer goods and nonwovens industries, which registered demand growth of 5%.

Compared to 4Q16, U.S. PP demand also strengthened, explained by seasonality, which benefited the caps & closures and film sectors, and by the need for producers to rebuild inventories, which had been low since end-2016.

Europe

The high number of maintenance shutdowns at PP plants in the Middle East during 1Q17, which affected 15% of the region’s total polymer production capacity, led to lower exports to Europe in the period and consequently higher prices in the region.

PP demand in Europe strengthened in relation to both 1Q16 and 4Q16, driven primarily by the automotive, consumer goods and construction material industries, which registered good performances in early 2017, and by the higher prices for polystyrene and engineering plastics, which led consumers to seek out other products to substitute these resins.

Net Revenue:

In 1Q17, net revenue was US$771 million, up 19% from 1Q16, which is explained by higher PP prices, the automotive industry’s growth in Europe and the sales volume growth supported by the capacity expansion projects in the United States.

In Brazilian real, net revenue was R$2,425 million in 1Q17, down 4% from 1Q16, due to the 20% Brazilian real appreciation in the period.

COGS: The main feedstock used to make PP in the United States and Europe is propylene, which is supplied to the Company’s industrial units by various local producers. In 1Q17, the segment’s cost of goods sold (COGS) amounted to US$549 million, or 3 4 % higher than in 1Q16. The average price reference for U.S. Gulf (USG) propylene in 1Q17 was US$1,040/ton, 52% higher than in 1Q16, which is explained by the shutdowns at refineries, which limited the product’s supply, and by the delay in the startup of a dehydrogenator in the region. The average price reference for propylene in Europe in 1Q17 was US$870/ton, 36% higher than in 1Q16, which is explained by the scheduled and unscheduled shutdowns at both crackers and propylene production units using propane as feedstock and by the strong demand for propylene derivatives in the region in the period.

SG&A Expenses:

Selling, general and administrative expenses in 1Q17 came to US$5 3 million, corresponding to 7% of the segment’s net revenue in the period.

EBITDA:

EBITDA amounted to US$188 million in the quarter, down 1 5 % from 1Q16, which is explained by the reduction in the PP-propylene spread ⁵ (33% in USA and 8% in Europe) due to higher raw material prices in both regions. In Brazilian real, EBITDA was R$592 million, accounting for 17% of consolidated EBITDA from all segments.

Net Revenue:

In 1Q17, net revenue came to US$299 million, increasing 38% from 4Q16, supported by sales volume growth in the period.

The sales price of Braskem Idesa’s PE in the Mexican market is based on the price of resins sold in the U.S. Gulf region, which registered an average price ⁷ of US$1,191/ton in 1Q17, up 7% from 4Q16, due to the limited supply of PE due to maintenance shutdowns in North America.

COGS: For its ethane supply, Braskem Idesa has a long-term contract with the subsidiary of Petróleos Mexicanos (PEMEX), the Mexican state-owned oil and gas company, whose price is based on the USG ethane price reference. In 1Q17, COGS came to US$161 million, increasing 25% from 4Q16, reflecting the higher sales volume. The average USG price reference for ethane stood at US$173/ton in 1Q17, down 2% from the previous quarter, reflecting: (i) the lower price for natural gas; and (ii) the higher price of petrochemical co-products (especially butadiene), which reduced the competitive advantage of ethane as a feedstock and consequently demand for the product. SG&A Expenses: In 1Q17, selling, general and administrative expenses came to US$21 million, 9% higher than in 4Q16, reflecting the higher sales volume and corresponding to 7% of the segment’s net revenue in the period.

EBITDA:

In 1Q17, EBITDA amounted to US$171 million, advancing 67% compared to 4Q16, with EBITDA margin of 57%, representing expansion of 10 p.p. from 4Q16, driven by sales volume growth and higher petrochemical spreads in the international market. In Brazilian real, EBITDA came to R$536 million, 59% higher than in 4Q16, influenced by the 20% average Brazilian real appreciation in the period.

Financial Results Braskem Idesa  

The financial result of Braskem Idesa mainly reflects the debt contracted under the project finance structure and the loan to Braskem Idesa from the project’s shareholders.

In 1Q17, the net financial result was income of R$272 million, which is explained by the exchange variation gain on the outstanding balance of the loan, given the Mexican peso’s appreciation against the U.S. dollar, which offset the recognition of the financial expense of R$31 million related to the transition of hedge accounting to the statement of operations.

As of March 31, 2017, the outstanding principal of the loan with the project’s shareholders was US$1,912 million.

§   Net Revenue

In 1Q17, net revenue amounted to US$4.0 billion, advancing 32% on the same quarter last year, which is explained by (i) the good sales volume of the Mexico complex; (ii) the recovery in domestic demand; and (iii) higher prices in the international market for resins and basic petrochemicals, especially butadiene, whose price rose by 240% from the same period last year.

In the case of resins, delays at ethane-based greenfield projects in the United States and improved demand contributed to the higher polyethylene prices in relation to 1Q16. In Brazilian real, net revenue came to R$12.6 billion, up 6% on the same period last year.

The share of the Brazilian market in the Company’s total net revenue (ex-resales of naphtha and condensate) in 1Q17 stood at 51%, down 2 p.p. from 1Q16, influenced by the ramp-up of the operations in Mexico and by the Company’s geographic diversification strategy.

Foreign markets accounted for 49% of the Company’s total net revenue, divided between exports from Brazil (23%) and sales by international units (26%). Export revenue in U.S. dollar came to US$2.0 billion in the quarter, up 36% from 1Q16.

§   Cost of goods sold Consolidated cost of goods sold (COGS) in 1Q17 amounted to US$2,836 million (R$8,912 million). Excluding the COGS from resales (R$65 million), consolidated COGS were R$8,847 million, up 10% from 1Q16 (R$8,0 12 million), which is explained by (i) the startup of Braskem Idesa; (ii) sales volume growth; and (iii) higher prices for feedstock, especially naphtha and propylene. Compared to 4Q16, consolidated COGS ex-resale increased 9%. In 1Q17, naphtha accounted for 41.1% of total COGS, declining 4.3 p.p. from 1Q16, which is explained by (i) the stronger Brazilian real in the period; (ii) the startup of the petrochemical complex in Mexico from 2Q16; and (iii) the higher capacity utilization rates in the United States.

§   SG&A Expenses

General and administrative expenses in 1Q17 amounted to R$691 million, increasing 9% from 1Q16, reflecting sales volume growth and higher expenses with the Mexico complex, which include those with launching the activities of the sales teams and with leasing freight cars.

In U.S. dollar, expenses amounted to US$220 million, 35% higher than in 1Q16.

§   EBITDA

Braskem’s consolidated EBITDA ⁸ in 1Q17 was US$1,147 million, advancing 4 4 % on 1Q16, which is explained by the increases of 2% in resin spreads and 64% in basic petrochemical spreads in the international market

and by the good performance of the Mexico complex, which in the same period last year was still in the ramp-up phase. The substantial expansion in basic petrochemical spreads was driven mainly by one-off price increases for butadiene and benzene. In Brazilian real, EBITDA came to R$3,607 million, increasing 16% from 1Q16.

§   Net Financial Result ⁹

In 1Q17, the net financial result was an expense of R$644 million, compared to an expense of R$903 million in 4Q16:

·          Financial expenses improved R$162 million from 4Q16, mainly due to the reductions in interest expenses and tax liabilities. The 3% Brazilian real appreciation in the comparison period was partially offset by the transition to the statement of operations of hedge accounting for exports, of R$337 million in 1Q17.

·          Financial income increased by R$33 million, mainly due to the R$21 million increase in interest income from financial investments in Brazilian real and to the end-of-period appreciation in the Brazilian real.

Excluding the effects from exchange variation, the net financial result in the quarter was an expense of R$429 million, representing a reduction of R$195 million from the expense in the prior-year period.

The following table shows the composition of Braskem’s net financial result, excluding Braskem Idesa:

¹⁰   The net profit (loss) per share does not include the result with discontinued operations.

17

Through a Global Settlement with authorities in Brazil and abroad, the Company undertook to pay approximately US$957 million, equivalent to approximately R$3.1 billion. Including the recognition of the face value of the Leniency Agreement on March 31, 2017 and the payment of US$94.8 million referring to the portion of the U.S. Department of Justice (DoJ) under the Global Settlement in the Company’s balance of net debt, the adjusted leverage ratio in USD ended 1Q17 at 1.81.

On March 31, 2017, the average debt term was 14.5 years and, considering only dollar-denominated debt, the average debt term was 17.1 years. The weighted average cost of servicing the Company's debt was exchange variation + 5.64%.

In line with its strategy to maintain high liquidity and its financial health, the Company also maintains two stand-by credit facilities in the amounts of US$750 million and R$500 million, both of which mature in 2019. None of the stand-by credit facilities was used in the period.

Braskem’s liquidity position of US$2,230 million is sufficient to cover the payment of all obligations maturing over the next 25 months. Considering the stand-by credit facilities, this coverage is 32 months.

The following chart details on Braskem’s debt amortization schedule as of March 31, 2017:

§   Currency Hedging Program

In 4Q16, Braskem launched a currency hedging program to mitigate the exposure of its cash flows to liabilities denominated in Brazilian real and not pegged to the U.S. dollar (energy, water, payroll, sustaining CAPEX, etc.).

The strategy was adopted solely for non-speculative purposes. Under the program, the contracting of derivatives is limited to the extent of exposure, in compliance with Braskem’s Financial Policy.

With the exclusive purpose of protecting its cash flow, the program adopts two strategies using derivative instruments: (i) purchase of put options (“Puts”) and (ii) purchase of put options associated with the sale of call options (“Zero-Cost Collar” or “ZCC”), contracted for a maximum period of 24 months.

Both alternatives offer protection in the event the Brazilian real appreciates while simultaneously enabling the capture of competitiveness gains in the event the local currency depreciates.

In the case of ZCCs, however, this potential benefit is limited to the strike price of the call option. In scenarios in which the exchange rate exceeds such strike prices, their effects will be recognized on the financial statements as a gain in EBITDA and a corresponding financial expense.

Management may suspend the program at any time that it, for whatever reason, deems such decision in the best interest of the Company.

§   Risk-rating agencies:

Braskem maintained investment grade ratings at Standard & Poor's (BBB-) and Fitch Ratings (BBB-) and its credit risk is above Brazil’s sovereign risk at the three main rating agencies (S&P, Fitch and Moody’s).

In 1Q17, Moody’s upgraded Braskem’s outlook from negative to stable, after upgrading its outlook for Brazil’s sovereign credit rating.

In April, Standard & Poor's reaffirmed Braskem’s rating on the global scale at BBB-, reflecting: (i) its position in the Brazilian petrochemical market; (ii) the diversification of its feedstock profile; (iii) its geographic diversification; and (iv) its broad client base and strong capacity to distribute products. The maintenance of the negative outlook reflects Brazil’s sovereign credit rating.

§   Investment ¹¹ :

In 1Q17, Braskem’s units in Brazil, the United States and Europe made 16% of the total investments planned for the year.

The investment of R$20 million in strategic projects in Brazil refers to the project to diversify the feedstock profile of the cracker in Bahia, which already reached 39.2% completion in 1Q17, with startup slated for the second half of 2017.

At the United States and Europe units, of the total of US$11 million (R$35 million) in strategic investments, US$8.7 million (R$27.2 million) refers to expenses with studies for the project to build a new PP plant in the United States.

§   Indicators

DISCLAIMER

This release contains forward-looking statements. These forward-looking statements are not solely historical data, but rather reflect the targets and expectations of Braskem’s management. Words such as "anticipate," "wish," "expect," "foresee," "intend," "plan," "predict," "project," "aim" and similar terms seek to identify statements that necessarily involve known and unknown risks. Braskem does not undertake any liability for transactions or investment decisions based on the information contained in this document.

(i)    Represents the accrual and reversal of provisions for the impairment of long-lived assets (investments, property, plant and equipment and intangible assets) that were adjusted to form EBITDA, since there is no expectation of their financial realization and if in fact realized they would be duly recorded on the statement of operations.

(ii)   Corresponds to the results of quantiQ and IQAG.

(iii) Corresponds to results from equity investments in associated companies and joint ventures.

(iv) Adjustments made in the year because they do not impact operating cash generation as per the Company’s understanding. The largest impact is related to the provision for the Leniency Agreement.