SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2017
(Commission File No. 1-14862 )
BRASKEM S.A.
(Exact Name as Specified in its Charter)
N/A
(Translation of registrant's name into English)
Rua Eteno, 1561, Polo Petroquimico de Camacari
Camacari, Bahia - CEP 42810-000 Brazil
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1). _____
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7). _____
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___
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____.
Braskem S.A.
Quarterly Information (ITR) at
September 30, 2017
and Independent Auditors’ Report Review
KPMG Auditores Independentes
Rua Arquiteto Olavo Redig de Campos, 105, 6º andar - Torre A
04711-904 - São Paulo/SP - Brasil
Caixa Postal 79518 - CEP 04707-970 - São Paulo/SP - Brasil
Telefone +55 (11) 3940-1500, Fax +55 (11) 3940-1501
www.kpmg.com.br
Report on review of interim financial information
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 September 30, 2017, which comprises the balance sheet as of September 30, 2017, the statements of profit or loss and comprehensive income for the three and nine-month period then ended, changes in equity and cash flows for the nine-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.
KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.
|
KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
|
2
Conclusion on the individual interim financial information
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.
Other matters
Statements of value added
The individual and consolidated interim financial information related to the Statements of added value (DVA) for the nine-month period ended September 30, 2017, prepared under the responsibility of the Company´s management, presented herein as supplementary information for IAS 34 purposes, have been subject to review procedures jointly performed with the review of the Company´s interim financial information - ITR. In order to form our conclusion, we assessed whether those statements are reconciled with the interim financial information and accounting records, as applicable, and whether their format and contents are in accordance with criteria determined in the Technical Pronouncement CPC 09 - Demonstração do Valor Adicionado. Based on our review, nothing has come to our attention that causes us to believe that the statements of added value referred to above were not prepared, in all material respects, consistently with the overall individual and consolidated interim financial information.
São Paulo, November 7, 2017
KPMG Auditores Independentes
CRC 2SP014428/O-6
Original report in Portuguese signed by
Anselmo Neves Macedo
Accountant CRC 1SP160482/O-6
KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.
|
KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
|
3
Braskem S.A.
Balance sheet
at September 30, 2017
All amounts in thousands of reais
|
|
|
|
Consolidated
|
|
Parent company
|
Assets
|
Note
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
4
|
|
5,452,435
|
|
6,701,864
|
|
3,482,275
|
|
3,561,431
|
|
Financial investments
|
5
|
|
2,284,643
|
|
1,190,483
|
|
1,861,774
|
|
741,086
|
|
Trade accounts receivable
|
6
|
|
2,698,969
|
|
1,634,137
|
|
1,288,954
|
|
952,689
|
|
Inventories
|
7
|
|
5,746,335
|
|
5,238,014
|
|
4,041,413
|
|
3,795,899
|
|
Taxes recoverable
|
9
|
|
1,206,478
|
|
826,015
|
|
666,422
|
|
543,275
|
|
Dividends and interest on capital
|
8
|
|
|
|
14,986
|
|
16,436
|
|
31,421
|
|
Prepaid expenses
|
|
|
189,482
|
|
101,747
|
|
140,648
|
|
83,252
|
|
Related parties
|
8(b)
|
|
|
|
|
|
15,040
|
|
172,344
|
|
Derivatives operations
|
15.2.1
|
|
10,032
|
|
8,387
|
|
10,032
|
|
8,387
|
|
Other receivables
|
|
|
298,805
|
|
180,915
|
|
220,562
|
|
128,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,887,179
|
|
15,896,548
|
|
11,743,556
|
|
10,018,015
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale
|
3
|
|
|
|
359,704
|
|
|
|
263,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,887,179
|
|
16,256,252
|
|
11,743,556
|
|
10,281,927
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
6
|
|
109,069
|
|
70,236
|
|
3,931,716
|
|
2,794,889
|
|
Advances to suppliers
|
7
|
|
50,231
|
|
61,533
|
|
50,231
|
|
61,533
|
|
Taxes recoverable
|
9
|
|
1,127,018
|
|
1,088,353
|
|
1,034,898
|
|
998,039
|
|
Deferred income tax and social contribution
|
17(b.ii)
|
|
918,737
|
|
1,653,115
|
|
|
|
42,459
|
|
Judicial deposits
|
|
|
247,178
|
|
233,320
|
|
240,278
|
|
226,894
|
|
Related parties
|
8(b)
|
|
|
|
|
|
14,482
|
|
14,472
|
|
Insurance claims
|
|
|
39,734
|
|
50,653
|
|
39,734
|
|
50,653
|
|
Derivatives operations
|
15.2.1
|
|
16,177
|
|
29,308
|
|
|
|
|
|
Other receivables
|
|
|
139,874
|
|
140,971
|
|
128,505
|
|
129,704
|
|
Investments
|
10(b)
|
|
100,490
|
|
92,313
|
|
6,521,118
|
|
4,132,529
|
|
Property, plant and equipment
|
11
|
|
29,803,098
|
|
29,336,710
|
|
15,456,541
|
|
15,963,127
|
|
Intangible assets
|
12
|
|
2,747,582
|
|
2,809,087
|
|
2,495,925
|
|
2,521,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,299,188
|
|
35,565,599
|
|
29,913,428
|
|
26,935,542
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
53,186,367
|
|
51,821,851
|
|
41,656,984
|
|
37,217,469
|
The Management notes are an integral part of the financial statements.
1
Braskem S.A.
Balance sheet
at September 30, 2017
All amounts in thousands of reais
|
Continued
|
|
|
|
|
Consolidated
|
|
Parent company
|
Liabilities and shareholders' equity
|
Note
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
4,810,718
|
|
6,545,136
|
|
1,767,997
|
|
2,056,661
|
|
Borrowings
|
13
|
|
3,528,069
|
|
2,594,463
|
|
2,396,996
|
|
2,117,409
|
|
Braskem Idesa borrowings
|
14
|
|
9,632,412
|
|
10,437,791
|
|
|
|
|
|
Derivatives operations
|
15.2.1
|
|
47,725
|
|
29,042
|
|
33,769
|
|
|
|
Payroll and related charges
|
|
|
558,578
|
|
562,455
|
|
444,453
|
|
431,688
|
|
Taxes payable
|
16
|
|
1,327,355
|
|
624,080
|
|
745,343
|
|
424,088
|
|
Dividends
|
|
|
2,559
|
|
3,083
|
|
2,559
|
|
3,083
|
|
Advances from customers
|
|
|
335,124
|
|
203,216
|
|
158,757
|
|
28,200
|
|
Leniency agreement
|
19.3
|
|
249,695
|
|
1,354,492
|
|
197,156
|
|
948,286
|
|
Sundry provisions
|
18
|
|
82,045
|
|
112,891
|
|
39,057
|
|
87,084
|
|
Accounts payable to related parties
|
8(b)
|
|
|
|
|
|
969,002
|
|
956,609
|
|
Other payables
|
|
|
205,012
|
|
476,262
|
|
66,430
|
|
295,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,779,292
|
|
22,942,911
|
|
6,821,519
|
|
7,348,341
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities held for sale
|
3
|
|
|
|
95,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,779,292
|
|
23,038,307
|
|
6,821,519
|
|
7,348,341
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
259,105
|
|
201,686
|
|
12,015,994
|
|
8,832,553
|
|
Borrowings
|
13
|
|
18,489,860
|
|
20,736,604
|
|
5,338,372
|
|
6,463,032
|
|
Derivatives operations
|
15.2.1
|
|
761,973
|
|
861,302
|
|
761,973
|
|
861,302
|
|
Taxes payable
|
16
|
|
45,342
|
|
24,097
|
|
44,661
|
|
23,830
|
|
Accounts payable to related parties
|
8(b)
|
|
|
|
|
|
5,475,280
|
|
8,234,053
|
|
Loan to non-controlling shareholders of Braskem Idesa
|
|
|
1,655,847
|
|
1,620,519
|
|
|
|
|
|
Deferred income tax and social contribution
|
17(b.ii)
|
|
1,248,698
|
|
510,523
|
|
786,730
|
|
|
|
Post-employment benefits
|
|
|
171,131
|
|
162,136
|
|
71,899
|
|
71,899
|
|
Provision for losses on subsidiaries
|
|
|
|
|
|
|
90,349
|
|
92,365
|
|
Advances from customers
|
|
|
28,800
|
|
162,955
|
|
|
|
|
|
Contingencies
|
19
|
|
1,064,397
|
|
985,237
|
|
1,005,299
|
|
926,819
|
|
Leniency agreement
|
19.3
|
|
1,337,217
|
|
1,498,738
|
|
1,289,251
|
|
1,400,224
|
|
Sundry provisions
|
18
|
|
206,453
|
|
206,245
|
|
170,301
|
|
169,499
|
|
Other payables
|
|
|
135,812
|
|
92,792
|
|
6,006
|
|
6,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,404,635
|
|
27,062,834
|
|
27,056,115
|
|
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
|
|
|
(5,048,133)
|
|
(6,321,859)
|
|
(5,048,133)
|
|
(6,321,859)
|
|
Treasury shares
|
|
|
(49,819)
|
|
(49,819)
|
|
(927)
|
|
(927)
|
|
Retained earnings
|
|
|
3,718,142
|
|
|
|
3,718,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total attributable to the Company's shareholders
|
|
|
7,730,458
|
|
2,738,590
|
|
7,779,350
|
|
2,787,482
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest in Braskem Idesa
|
|
|
(728,018)
|
|
(1,017,880)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,002,440
|
|
1,720,710
|
|
7,779,350
|
|
2,787,482
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
53,186,367
|
|
51,821,851
|
|
41,656,984
|
|
37,217,469
|
The Management notes are an integral part of the financial statements.
2
Braskem S.A.
Statement of operations and statement of comprehensive income
at September 30, 2017
All amounts in thousands of reais
|
|
|
|
|
Consolidated
|
Continued operations
|
|
Note
|
|
3Q2017
|
|
YTD2017
|
|
3Q2016
|
|
YTD2016
|
|
|
|
|
|
|
|
|
|
Restated
|
|
Restated
|
Net sales revenue
|
|
22
|
|
12,162,048
|
|
36,632,206
|
|
11,981,341
|
|
35,617,873
|
|
Cost of products sold
|
|
|
|
(9,126,289)
|
|
(27,017,279)
|
|
(8,765,150)
|
|
(25,839,349)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,035,759
|
|
9,614,927
|
|
3,216,191
|
|
9,778,524
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution
|
|
|
|
(380,879)
|
|
(1,085,465)
|
|
(363,709)
|
|
(1,012,353)
|
|
General and administrative
|
|
|
|
(372,133)
|
|
(994,517)
|
|
(335,740)
|
|
(922,364)
|
|
Research and development
|
|
|
|
(38,839)
|
|
(110,984)
|
|
(37,219)
|
|
(119,847)
|
|
Results from equity investments
|
|
10(c)
|
|
6,474
|
|
29,325
|
|
9,800
|
|
23,177
|
|
Other income (expenses), net
|
|
23
|
|
(318,756)
|
|
(301,949)
|
|
(192,775)
|
|
(556,280)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,931,626
|
|
7,151,337
|
|
2,296,548
|
|
7,190,857
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial results
|
|
24
|
|
|
|
|
|
|
|
|
|
Financial expenses
|
|
|
|
(808,402)
|
|
(2,464,489)
|
|
(879,144)
|
|
(2,571,303)
|
|
Financial income
|
|
|
|
155,935
|
|
472,465
|
|
190,189
|
|
565,944
|
|
Exchange rate variations, net
|
|
|
|
(287,693)
|
|
(11,089)
|
|
(453,783)
|
|
(2,516,475)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(940,160)
|
|
(2,003,113)
|
|
(1,142,738)
|
|
(4,521,834)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax and social contribution
|
|
|
|
991,466
|
|
5,148,224
|
|
1,153,810
|
|
2,669,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current and deferred income tax and social contribution
|
|
17(a)
|
|
(227,689)
|
|
(1,336,652)
|
|
(340,840)
|
|
(804,065)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period of continued operations
|
|
|
|
763,777
|
|
3,811,572
|
|
812,970
|
|
1,864,958
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations results
|
|
3
|
|
|
|
|
|
|
|
|
|
Profit from discontinued operations
|
|
|
|
|
|
13,499
|
|
7,338
|
|
34,538
|
|
Current and deferred income tax and social contribution
|
|
|
|
|
|
(4,623)
|
|
(2,286)
|
|
(11,213)
|
|
|
|
|
|
|
|
8,876
|
|
5,052
|
|
23,325
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
763,777
|
|
3,820,448
|
|
818,022
|
|
1,888,283
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Company's shareholders
|
|
|
|
799,370
|
|
3,696,770
|
|
889,433
|
|
2,119,804
|
|
Non-controlling interest in Braskem Idesa
|
|
|
|
(35,593)
|
|
123,678
|
|
(71,411)
|
|
(231,521)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
763,777
|
|
3,820,448
|
|
818,022
|
|
1,888,283
|
The Management notes are an integral part of the financial statements.
3
Braskem S.A.
Statement of operations and statement of comprehensive income
at September 30, 2017
All amounts in thousands of reais, except earnings or loss per share
|
Continued
|
|
|
|
|
|
Parent company
|
Continued operations
|
|
Note
|
|
3Q2017
|
|
YTD2017
|
|
3Q2016
|
|
YTD2016
|
|
|
|
|
|
|
|
|
|
Restated
|
|
Restated
|
Net sales revenue
|
|
22
|
|
8,917,381
|
|
27,238,880
|
|
8,961,293
|
|
26,726,297
|
|
Cost of products sold
|
|
|
|
(7,116,050)
|
|
(21,434,513)
|
|
(6,898,736)
|
|
(20,662,676)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,801,331
|
|
5,804,367
|
|
2,062,557
|
|
6,063,621
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution
|
|
|
|
(237,675)
|
|
(686,805)
|
|
(250,255)
|
|
(701,811)
|
|
General and administrative
|
|
|
|
(248,037)
|
|
(675,912)
|
|
(186,225)
|
|
(535,157)
|
|
Research and development
|
|
|
|
(25,413)
|
|
(75,374)
|
|
(25,265)
|
|
(75,983)
|
|
Results from equity investments
|
|
10(c)
|
|
409,468
|
|
1,982,829
|
|
344,811
|
|
1,411,541
|
|
Other income (expenses), net
|
|
|
|
(289,092)
|
|
(245,104)
|
|
(120,561)
|
|
(376,202)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,410,582
|
|
6,104,001
|
|
1,825,062
|
|
5,786,009
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial results
|
|
24
|
|
|
|
|
|
|
|
|
|
Financial expenses
|
|
|
|
(524,437)
|
|
(1,632,151)
|
|
(686,519)
|
|
(2,095,758)
|
|
Financial income
|
|
|
|
136,320
|
|
424,342
|
|
196,275
|
|
514,976
|
|
Exchange rate variations, net
|
|
|
|
(219,220)
|
|
(630,623)
|
|
(195,969)
|
|
(1,782,164)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(607,337)
|
|
(1,838,432)
|
|
(686,213)
|
|
(3,362,946)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax and social contribution
|
|
|
|
803,245
|
|
4,265,569
|
|
1,138,849
|
|
2,423,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current and deferred income tax and social contribution
|
|
17(a)
|
|
(3,875)
|
|
(577,675)
|
|
(256,668)
|
|
(331,002)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period of continued operations
|
|
|
|
799,370
|
|
3,687,894
|
|
882,181
|
|
2,092,061
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations results
|
|
3
|
|
|
|
8,876
|
|
7,252
|
|
27,743
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
799,370
|
|
3,696,770
|
|
889,433
|
|
2,119,804
|
The Management notes are an integral part of the financial statements.
4
Braskem S.A.
Statement of operations and statement of comprehensive income
at September 30, 2017
All amounts in thousands of reais, except earnings or loss per share
|
Continued
|
|
|
|
|
|
Consolidated
|
|
|
|
Note
|
|
3Q2017
|
|
YTD2017
|
|
3Q2016
|
|
YTD2016
|
|
|
|
|
|
|
|
|
|
Restated
|
|
Restated
|
Profit for the period
|
|
|
|
763,777
|
|
3,820,448
|
|
818,022
|
|
1,888,283
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income or loss:
|
|
|
|
|
|
|
|
|
|
|
Items that will be reclassified subsequently to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of cash flow hedge
|
|
|
|
80,378
|
|
131,545
|
|
(13,927)
|
|
165,904
|
|
Income tax and social contribution
|
|
|
|
(26,985)
|
|
(42,635)
|
|
5,660
|
|
(62,647)
|
|
Fair value of cash flow hedge - Braskem Idesa
|
|
|
|
|
|
|
|
|
|
|
|
Income tax and social contribution
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of cash flow hedge from jointly-controlled
|
|
|
|
(2,847)
|
|
915
|
|
6,493
|
|
(6,272)
|
|
|
|
|
|
50,546
|
|
89,825
|
|
(1,774)
|
|
96,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange variation of foreign sales hedge
|
|
15.3(a.i)
|
|
686,808
|
|
456,301
|
|
(226,015)
|
|
4,207,644
|
|
Sales Hedge - transfer to profit or loss
|
|
15.3(a.i)
|
|
275,362
|
|
774,324
|
|
267,896
|
|
1,035,139
|
|
Income tax and social contribution on exchange variation
|
|
|
|
(327,137)
|
|
(418,412)
|
|
(14,239)
|
|
(1,782,546)
|
|
Exchange variation of foreign sales hedge - Braskem Idesa
|
|
15.3(a.ii)
|
|
(155,426)
|
|
1,248,177
|
|
(306,283)
|
|
(1,400,255)
|
|
Sales Hedge - transfer to profit or loss - Braskem Idesa
|
|
15.3(a.ii)
|
|
38,918
|
|
112,828
|
|
21,067
|
|
35,364
|
|
Income tax on exchange variation - Braskem Idesa
|
|
|
|
34,953
|
|
(408,301)
|
|
82,010
|
|
410,202
|
|
|
|
|
|
553,478
|
|
1,764,917
|
|
(175,564)
|
|
2,505,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign subsidiaries currency translation adjustment
|
|
|
|
(105,377)
|
|
(393,942)
|
|
159,621
|
|
135,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
498,647
|
|
1,460,800
|
|
(17,717)
|
|
2,738,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
|
|
1,262,424
|
|
5,281,248
|
|
800,305
|
|
4,626,448
|
The Management notes are an integral part of the financial statements.
5
Braskem S.A.
Statement of operations and statement of comprehensive income
at September 30, 2017
All amounts in thousands of reais, except earnings or loss per share
|
Continued
|
|
|
|
|
|
Parent company
|
|
|
|
Note
|
|
3Q2017
|
|
YTD2017
|
|
3Q2016
|
|
YTD2016
|
|
|
|
|
|
|
|
|
|
Restated
|
|
Restated
|
Profit for the period
|
|
|
|
799,370
|
|
3,696,770
|
|
889,433
|
|
2,119,804
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income or loss:
|
|
|
|
|
|
|
|
|
|
|
Items that will be reclassified subsequently to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of cash flow hedge
|
|
|
|
71,800
|
|
79,294
|
|
(37,057)
|
|
321,896
|
|
Income tax and social contribution
|
|
|
|
(24,412)
|
|
(26,960)
|
|
12,599
|
|
(109,445)
|
|
Fair value of cash flow hedge - Braskem Idesa
|
|
|
|
6,435
|
|
39,189
|
|
17,349
|
|
(116,993)
|
|
Income tax and social contribution
|
|
|
|
(1,931)
|
|
(11,757)
|
|
(5,205)
|
|
35,098
|
|
Fair value of cash flow hedge from jointly-controlled
|
|
|
|
(2,847)
|
|
915
|
|
6,493
|
|
(6,272)
|
|
|
|
|
|
49,045
|
|
80,681
|
|
(5,821)
|
|
124,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange variation of foreign sales hedge
|
|
15.3(a.i)
|
|
686,808
|
|
456,301
|
|
(226,015)
|
|
4,207,644
|
|
Sales Hedge - transfer to profit or loss
|
|
15.3(a.i)
|
|
275,362
|
|
774,324
|
|
267,896
|
|
1,035,139
|
|
Income tax and social contribution on exchange variation
|
|
|
|
(327,137)
|
|
(418,412)
|
|
(14,239)
|
|
(1,782,546)
|
|
Exchange variation of foreign sales hedge - Braskem Idesa
|
|
15.3(a.ii)
|
|
(116,569)
|
|
936,133
|
|
(229,712)
|
|
(1,050,191)
|
|
Sales Hedge - transfer to profit or loss - Braskem Idesa
|
|
15.3(a.ii)
|
|
29,189
|
|
84,621
|
|
15,800
|
|
26,523
|
|
Income tax on exchange variation - Braskem Idesa
|
|
|
|
26,214
|
|
(306,226)
|
|
61,507
|
|
307,651
|
|
|
|
|
|
573,867
|
|
1,526,741
|
|
(124,763)
|
|
2,744,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign subsidiaries currency translation adjustment
|
|
|
|
(137,688)
|
|
(312,806)
|
|
130,205
|
|
(85,770)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
485,224
|
|
1,294,616
|
|
(379)
|
|
2,782,734
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
|
|
1,284,594
|
|
4,991,386
|
|
889,054
|
|
4,902,538
|
|
|
|
|
|
|
|
|
|
Parent company
|
|
|
|
|
|
|
|
|
|
YTD2017
|
|
YTD2016
|
|
|
|
Note
|
|
|
|
|
|
Basic and diluted
|
|
Basic and diluted
|
Profit per share attributable to the shareholders of the Company
|
|
|
|
|
|
|
|
|
|
Restated
|
of continued operations at the end of the period
|
|
21
|
|
|
|
|
|
|
|
|
(expressed in reais)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - common
|
|
|
|
|
|
|
|
4.6358
|
|
2.6296
|
|
Earnings per share - preferred shares class "A"
|
|
|
|
|
|
|
|
4.6358
|
|
2.6296
|
|
Earnings per share - preferred shares class "B"
|
|
|
|
|
|
|
|
0.6069
|
|
0.6069
|
The Management notes are an integral part of the financial statements.
6
Braskem S.A.
Statement of changes in shareholder’s equity
All amounts in thousands of reais
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period - restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,119,804
|
|
2,119,804
|
|
(231,521)
|
|
1,888,283
|
Exchange variation of foreign sales hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
2,744,220
|
|
|
|
|
|
2,744,220
|
|
(238,672)
|
|
2,505,548
|
Fair value of cash flow hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
124,284
|
|
|
|
|
|
124,284
|
|
(27,299)
|
|
96,985
|
Foreign subsidiaries currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(85,770)
|
|
|
|
|
|
(85,770)
|
|
221,402
|
|
135,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,782,734
|
|
|
|
2,119,804
|
|
4,902,538
|
|
(276,090)
|
|
4,626,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity valuation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization of additional property, plant and equipment price-level restatement, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,427)
|
|
|
|
20,427
|
|
|
|
|
|
|
Realization of deemed cost of jointly-controlled investment, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(724)
|
|
|
|
724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,151)
|
|
|
|
21,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional dividends approved by the General Meeting
|
|
|
|
|
|
|
|
|
|
|
(247,364)
|
|
|
|
|
|
|
|
(247,364)
|
|
|
|
(247,364)
|
Interim dividends approved by Board of Directors
|
|
|
|
|
|
|
|
|
(1,000,000)
|
|
|
|
|
|
|
|
|
|
(1,000,000)
|
|
|
|
(1,000,000)
|
|
|
|
|
|
|
|
|
|
(1,000,000)
|
|
(247,364)
|
|
|
|
|
|
|
|
(1,247,364)
|
|
|
|
(1,247,364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2016 - restated
|
2.4
|
|
8,043,222
|
|
232,430
|
|
229,992
|
|
1,404,663
|
|
|
|
(6,299,127)
|
|
(49,819)
|
|
1,724,187
|
|
5,285,548
|
|
(960,975)
|
|
4,324,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2016
|
|
|
8,043,222
|
|
232,430
|
|
229,992
|
|
604,624
|
|
|
|
(6,321,859)
|
|
(49,819)
|
|
|
|
2,738,590
|
|
(1,017,880)
|
|
1,720,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,696,770
|
|
3,696,770
|
|
123,678
|
|
3,820,448
|
Exchange variation of foreign sales hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
1,526,741
|
|
|
|
|
|
1,526,741
|
|
238,176
|
|
1,764,917
|
Fair value of cash flow hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
80,681
|
|
|
|
|
|
80,681
|
|
9,144
|
|
89,825
|
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(312,806)
|
|
|
|
|
|
(312,806)
|
|
(81,136)
|
|
(393,942)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,294,616
|
|
|
|
3,696,770
|
|
4,991,386
|
|
289,862
|
|
5,281,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity valuation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization of additional property, plant and equipment price-level restatement, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,167)
|
|
|
|
20,167
|
|
|
|
|
|
|
Realization of deemed cost of jointly-controlled investment, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(723)
|
|
|
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,890)
|
|
|
|
20,890
|
|
|
|
|
|
|
Contributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapsed dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
482
|
|
482
|
|
|
|
482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
482
|
|
482
|
|
|
|
482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2017
|
|
|
8,043,222
|
|
232,430
|
|
229,992
|
|
604,624
|
|
|
|
(5,048,133)
|
|
(49,819)
|
|
3,718,142
|
|
7,730,458
|
|
(728,018)
|
|
7,002,440
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period - restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,119,804
|
|
2,119,804
|
Exchange variation of foreign sales hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
2,744,220
|
|
|
|
|
|
2,744,220
|
Fair value of cash flow hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
124,284
|
|
|
|
|
|
124,284
|
Foreign subsidiaries currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(85,770)
|
|
|
|
|
|
(85,770)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,782,734
|
|
|
|
2,119,804
|
|
4,902,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity valuation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization of additional property, plant and equipment price-level restatement, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,427)
|
|
|
|
20,427
|
|
|
Realization of deemed cost of jointly-controlled investment, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(724)
|
|
|
|
724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,151)
|
|
|
|
21,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional dividends approved by the General Meeting
|
|
|
|
|
|
|
|
|
|
|
(247,364)
|
|
|
|
|
|
|
|
(247,364)
|
Interim dividends approved by Board of Directors
|
|
|
|
|
|
|
|
|
(1,000,000)
|
|
|
|
|
|
|
|
|
|
(1,000,000)
|
|
|
|
|
|
|
|
|
|
(1,000,000)
|
|
(247,364)
|
|
|
|
|
|
|
|
(1,247,364)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2016 - restated
|
2.4
|
|
8,043,222
|
|
232,430
|
|
229,992
|
|
1,404,663
|
|
|
|
(6,299,127)
|
|
(927)
|
|
1,724,187
|
|
5,334,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2016
|
|
|
8,043,222
|
|
232,430
|
|
229,992
|
|
604,624
|
|
|
|
(6,321,859)
|
|
(927)
|
|
|
|
2,787,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,696,770
|
|
3,696,770
|
Exchange variation of foreign sales hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
1,526,741
|
|
|
|
|
|
1,526,741
|
Fair value of cash flow hedge, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
80,681
|
|
|
|
|
|
80,681
|
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
(312,806)
|
|
|
|
|
|
(312,806)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,294,616
|
|
|
|
3,696,770
|
|
4,991,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity valuation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization of deemed cost of jointly-controlled investment, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,167)
|
|
|
|
20,167
|
|
|
Realization of additional property, plant and equipment price-level restatement, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(723)
|
|
|
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,890)
|
|
|
|
20,890
|
|
|
Contributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapsed dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
482
|
|
482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
482
|
|
482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2017
|
|
|
8,043,222
|
|
232,430
|
|
229,992
|
|
604,624
|
|
|
|
(5,048,133)
|
|
(927)
|
|
3,718,142
|
|
7,779,350
|
The Management notes are an integral pa
rt of the financial statements.
8
Braskem S.A.
Statement of cash flows
at September 30, 2017
All amounts in thousands of reais
|
|
|
|
Consolidated
|
|
Parent company
|
|
|
Note
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
|
2.4
|
|
|
|
Restated
|
|
|
|
Restated
|
Profit before income tax and social contribution and
for the result with discontinued operations
|
|
|
5,148,224
|
|
2,703,561
|
|
4,265,569
|
|
2,450,806
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for reconciliation of profit
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion
|
|
|
2,169,141
|
|
1,955,041
|
|
1,405,483
|
|
1,552,065
|
|
Results from equity investments
|
10(c)
|
|
(29,325)
|
|
(23,177)
|
|
(1,982,829)
|
|
(1,439,284)
|
|
Interest and monetary and exchange variations, net
|
|
|
1,573,571
|
|
1,998,450
|
|
1,674,575
|
|
1,676,418
|
|
Gain from divestment in subsidiary
|
3
|
|
(276,816)
|
|
|
|
(276,366)
|
|
|
|
Provision for losses and write-offs of long-lived assets
|
|
|
115,978
|
|
16,610
|
|
105,630
|
|
17,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,700,773
|
|
6,650,485
|
|
5,192,062
|
|
4,257,146
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating working capital
|
|
|
|
|
|
|
|
|
|
|
Held-for-trading financial investments
|
|
|
(1,016,992)
|
|
(903,701)
|
|
(1,077,507)
|
|
(521,928)
|
|
Trade accounts receivable
|
|
|
(1,105,299)
|
|
636,520
|
|
(1,474,461)
|
|
2,131,272
|
|
Inventories
|
|
|
(493,758)
|
|
566,310
|
|
(241,253)
|
|
807,343
|
|
Taxes recoverable
|
|
|
257,580
|
|
993,223
|
|
160,610
|
|
775,975
|
|
Prepaid expenses
|
|
|
(87,735)
|
|
25,866
|
|
(57,396)
|
|
29,487
|
|
Other receivables
|
|
|
16,637
|
|
(66,964)
|
|
200,076
|
|
119,784
|
|
Trade payables
|
|
|
(1,468,178)
|
|
(3,012,976)
|
|
3,103,598
|
|
(884,068)
|
|
Taxes payable
|
|
|
(8,927)
|
|
154,230
|
|
148,228
|
|
150,798
|
|
Advances from customers
|
|
|
(2,247)
|
|
255,523
|
|
130,557
|
|
(26,316)
|
|
Leniency agreement
|
|
|
(1,343,803)
|
|
|
|
(942,905)
|
|
|
|
Sundry provisions
|
|
|
48,522
|
|
117,210
|
|
31,255
|
|
130,002
|
|
Other payables
|
|
|
(195,449)
|
|
(18,058)
|
|
(223,813)
|
|
(113,175)
|
|
|
|
|
|
|
|
|
|
|
|
Cash from operations
|
|
|
3,301,124
|
|
5,397,668
|
|
4,949,051
|
|
6,856,320
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
(1,492,709)
|
|
(1,364,113)
|
|
(490,589)
|
|
(410,952)
|
|
Income tax and social contribution paid
|
|
|
(676,708)
|
|
(847,012)
|
|
(320,616)
|
|
(65,002)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated by operating activities
|
|
|
1,131,707
|
|
3,186,543
|
|
4,137,846
|
|
6,380,366
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the sale of fixed assets
|
|
|
1,634
|
|
431
|
|
1,369
|
|
114
|
Funds received on the sale of investments
|
3
|
|
450,000
|
|
|
|
449,550
|
|
|
Acquisitions of property, plant and equipment and intangible assets
|
(i)
|
|
(1,515,260)
|
|
(1,752,884)
|
|
(892,111)
|
|
(729,251)
|
Premuim in the dollar put option
|
|
|
(12,463)
|
|
(4,856)
|
|
(12,463)
|
|
(4,856)
|
Held-for-maturity financial investments
|
|
|
|
|
38,353
|
|
|
|
38,353
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(1,076,089)
|
|
(1,718,956)
|
|
(453,655)
|
|
(695,640)
|
|
|
|
|
|
|
|
|
|
|
|
Short-term and Long-term debit
|
|
|
|
|
|
|
|
|
|
|
Obtained
|
|
|
2,469,210
|
|
2,821,945
|
|
2,077,328
|
|
2,787,182
|
|
Payments
|
|
|
(3,308,590)
|
|
(3,755,480)
|
|
(2,847,849)
|
|
(3,963,058)
|
Braskem Idesa borrowings
|
|
|
|
|
|
|
|
|
|
|
Obtained funds
|
|
|
187,959
|
|
503,921
|
|
|
|
|
|
Payment of borrowings
|
|
|
(710,821)
|
|
(370,041)
|
|
|
|
|
Related parties
|
|
|
|
|
|
|
|
|
|
|
Obtained
|
|
|
|
|
|
|
852,148
|
|
260,101
|
|
Payments
|
|
|
|
|
|
|
(3,844,932)
|
|
(3,827,017)
|
Dividends paid
|
|
|
(42)
|
|
(998,985)
|
|
(42)
|
|
(998,985)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
(1,362,284)
|
|
(1,798,640)
|
|
(3,763,347)
|
|
(5,741,777)
|
|
|
|
|
|
|
|
|
|
|
|
Exchange variation on cash of foreign subsidiaries
|
|
|
57,237
|
|
526,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(1,249,429)
|
|
195,586
|
|
(79,156)
|
|
(57,051)
|
|
|
|
|
|
|
|
|
|
|
|
Represented by
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
6,701,864
|
|
7,043,262
|
|
3,561,431
|
|
4,415,764
|
|
Cash and cash equivalents at the end of the period
|
|
|
5,452,435
|
|
7,238,848
|
|
3,482,275
|
|
4,358,713
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(1,249,429)
|
|
195,586
|
|
(79,156)
|
|
(57,051)
|
(i)
In the period ended September 30, 2016, the capitalized interest paid that was included in this item (R$270,235 Consolidated, R$51,153 Parent Company) was reclassified to “Interest paid” (Note 2.5(a)).
The Management notes are an integral part of the financial statements.
9
Braskem S.A.
Statement of value added
at September 30, 2017
All amounts in thousands of reais
|
|
|
Consolidated
|
|
Parent company
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
|
|
Restated
|
|
|
|
Restated
|
Revenue
|
|
43,093,239
|
|
41,527,675
|
|
33,795,477
|
|
32,108,339
|
|
Sale of goods, products and services
|
|
43,000,974
|
|
41,745,534
|
|
33,752,056
|
|
32,291,772
|
|
Other income (expenses), net
|
|
93,431
|
|
(153,654)
|
|
45,346
|
|
(123,311)
|
|
Allowance for doubtful accounts
|
|
(1,166)
|
|
(64,205)
|
|
(1,925)
|
|
(60,122)
|
Inputs acquired from third parties
|
|
(30,537,295)
|
|
(29,570,140)
|
|
(25,038,039)
|
|
(24,180,946)
|
|
Cost of products, goods and services sold
|
|
(28,973,421)
|
|
(28,135,514)
|
|
(23,887,029)
|
|
(23,191,585)
|
|
Material, energy, outsourced services and others
|
|
(1,541,770)
|
|
(1,386,408)
|
|
(1,130,738)
|
|
(944,893)
|
|
Impairment of assets
|
|
(22,104)
|
|
(48,218)
|
|
(20,272)
|
|
(44,468)
|
Gross value added
|
|
12,555,944
|
|
11,957,535
|
|
8,757,438
|
|
7,927,393
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion
|
|
(2,169,141)
|
|
(1,955,041)
|
|
(1,405,483)
|
|
(1,552,065)
|
|
|
|
|
|
|
|
|
|
|
Net value added produced by the entity
|
|
10,386,803
|
|
10,002,494
|
|
7,351,955
|
|
6,375,328
|
|
|
|
|
|
|
|
|
|
|
Value added received in transfer
|
|
510,709
|
|
589,269
|
|
2,416,091
|
|
1,954,260
|
|
Results from equity investments
|
|
38,201
|
|
23,177
|
|
1,991,705
|
|
1,439,284
|
|
Financial income
|
|
472,465
|
|
565,944
|
|
424,342
|
|
514,976
|
|
Other
|
|
43
|
|
148
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
Total value added to distribute
|
|
10,897,512
|
|
10,591,763
|
|
9,768,046
|
|
8,329,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
|
|
1,051,419
|
|
942,389
|
|
750,200
|
|
558,736
|
|
Direct compensation
|
|
846,444
|
|
735,252
|
|
588,681
|
|
412,572
|
|
Benefits
|
|
160,053
|
|
162,305
|
|
115,514
|
|
102,707
|
|
FGTS (Government Severance Pay Fund)
|
|
44,922
|
|
44,832
|
|
46,005
|
|
43,457
|
|
|
|
|
|
|
|
|
|
|
Taxes, fees and contribuitions
|
|
3,374,928
|
|
2,513,283
|
|
2,911,601
|
|
1,639,954
|
|
Federal
|
|
1,938,800
|
|
1,176,031
|
|
1,532,288
|
|
502,628
|
|
State
|
|
1,417,962
|
|
1,315,940
|
|
1,367,398
|
|
1,125,696
|
|
Municipal
|
|
18,166
|
|
21,312
|
|
11,915
|
|
11,630
|
|
|
|
|
|
|
|
|
|
|
Remuneration on third parties' capital
|
|
2,650,717
|
|
5,247,808
|
|
2,409,475
|
|
4,011,094
|
|
Financial expenses (including exchange variation)
|
|
2,463,186
|
|
5,067,060
|
|
2,254,096
|
|
3,868,518
|
|
Rentals
|
|
187,531
|
|
180,748
|
|
155,379
|
|
142,576
|
|
|
|
|
|
|
|
|
|
|
Remuneration on own capital
|
|
3,820,448
|
|
1,888,283
|
|
3,696,770
|
|
2,119,804
|
|
Profit for the period
|
|
3,687,894
|
|
2,096,479
|
|
3,687,894
|
|
2,092,061
|
|
Non-controlling interest in Braskem Idesa
|
|
123,678
|
|
(231,521)
|
|
|
|
|
|
Discontinued operations results
|
|
8,876
|
|
23,325
|
|
8,876
|
|
27,743
|
|
|
|
|
|
|
|
|
|
|
Value added distributed
|
|
10,897,512
|
|
10,591,763
|
|
9,768,046
|
|
8,329,588
|
The Management notes are an integral part of the financial statements.
10
|
Braskem S.A.
Notes to the financial statements
at
September 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, the plant will complement the production capacity of the existing line in Brazil at the Camaçari Petrochemical Complex.
|
|
|
(ii)
|
On January 27, 2017, the Board of Directors of the Company authorized the execution of a purchase agreement with Odebrecht Utilities S.A. (“Odebrecht Utilities”), through which Braskem undertook to purchase all shares held by the seller in Cetrel S.A. (“Cetrel”), 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.
|
|
|
|
Cetrel is an environmental services company that started operations in 1978, together with the industries of the Camaçari Petrochemical Complex. With more than 100 clients, with approximately 70% in the Camaçari Petrochemical Complex, Cetrel is responsible for the treatment and final disposal of effluents and industrial waste, environmental monitoring and water supply for industrial use of Braskem's plants in Camaçari.
|
|
|
|
Cetrel plays an important role in the management of the environmental processes of the activities of the Camaçari Petrochemical Complex, and its acquisition seeks to guarantee the safety and reliability of the industrial operations in said Pole.
|
|
|
|
On September 29, 2017, the Shareholders Meeting of Braskem approved the consummation of the acquisition, with payment and transfer of control occurring on October 2, 2017 (Note 27(a)).
|
|
|
(iii)
|
On June 21, 2017, the Board of Directors approved the construction of a new polypropylene production unit in La Porte, Texas, United States. The total investment is up to approximately US$675 million for 450 kta in production capacity. The project is slated to be concluded in 2020.
|
|
|
(b)
|
Net Working Capital
|
|
|
|
On September 30, 2017, in compliance with CPC 26 and its corresponding accounting standard IAS 1 (Presentation of Financial Statements), the subsidiary Braskem Idesa reclassified to current liabilities the finance obligations whose original maturities are long term, since certain contractual obligations (covenants) that at base date of this quarterly information, were in default (Note 14). Consequently, the net working capital became negative R$2,892,113.
|
|
|
|
It should be noted that Braskem Idesa has been settling its debt service obligations in accordance with the original maturity schedule, none of the creditors has requested immediate repayment of such obligations and, without the above reclassification, consolidated net working capital is positive at R$5,807,912.
|
|
|
11
|
Braskem S.A.
Notes to the financial statements
at
September 30, 2017
All amounts in thousands of reais, unless otherwise stated
|
|
|
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, except for Note 2.5.
|
|
|
2.1.
|
Basis of preparation
|
|
|
|
This Quarterly Information includes the nine-month period ended September 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 (CPC), and in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB); and (ii) in the Parent Company, in accordance with the accounting practices adopted in Brazil, in compliance with Federal Law 6,404/76, as amended, and with the standards issued by 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 financial statements was authorized by the Executive Board on November 7, 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.
|
|
|
12
Braskem S.A.
Notes to the financial statements
at
September 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
|
|
Sep/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
|
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
Crédito Privado Longo Prazo ("FIM Júpiter")
|
|
|
|
Brazil
|
|
100.00
|
|
100.00
|
(i)
Dissolved in July 2017.
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
|
|
Sep/2017
|
|
Dec/2016
|
|
Variation
|
|
Sep/2017
|
|
Sep/2017
|
|
Variation
|
U.S. dollar - Brazilizan real
|
3.1680
|
|
3.2591
|
|
-2.80%
|
|
3.1750
|
|
3.5450
|
|
-10.44%
|
U.S. dollar - Mexican peso
|
18.1511
|
|
20.6352
|
|
-12.04%
|
|
18.8955
|
|
18.3130
|
|
3.18%
|
U.S. dollar - Euro
|
0.8464
|
|
0.9479
|
|
-10.71%
|
|
0.8995
|
|
0.8958
|
|
0.42%
|
13
Braskem S.A.
Notes to the financial statements
at
September 30, 2017
All amounts in thousands of reais, unless otherwise stated
2.3.
Reconciliation of equity and profit (loss) for the period between Parent Company and consolidated
|
|
|
|
Shareholders' equity
|
|
Profit for the period
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
Parent company
|
|
|
7,779,350
|
|
2,787,482
|
|
3,696,770
|
|
2,119,804
|
|
Braskem shares owned by subsidiary Braskem Petroquímica
|
|
|
(48,892)
|
|
(48,892)
|
|
|
|
|
|
Non-controlling interest of Braskem Idesa
|
|
|
(728,018)
|
|
(1,017,880)
|
|
123,678
|
|
(231,521)
|
Consolidated
|
|
|
7,002,440
|
|
1,720,710
|
|
3,820,448
|
|
1,888,283
|
2.4.
Restatement
The statements of operations, of changes in shareholders’ equity and of cash flows for the period ended September 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.
Furthermore, the statement of cash flows for the period ended September 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 September 30, 2016 were R$270,235 and R$51,153 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.
In the period ended September 30, 2016, the consolidated amounts related to this item were reclassified from “costs of goods sold” (R$107,318), “selling and distribution expenses” (R$5,031) and “general and administrative expenses” (R$133,004) to the item “other income (expenses), net” (Note 23).
3.
Held-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 approval of the sale plan was made by Management during the second half of 2016.
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 the second quarter of 2017.
14
Braskem S.A.
Notes to the financial statements
at
September 30, 2017
All amounts in thousands of reais, unless otherwise stated
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
15
Braskem S.A.
Notes to the financial statements
at
September 30, 2017
All amounts in thousands of reais, unless otherwise stated
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
|
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
Cash and banks
|
|
|
(i)
|
1,424,383
|
|
2,178,611
|
Cash equivalents:
|
|
|
|
|
|
|
|
Domestic market
|
|
|
|
2,977,859
|
|
2,914,685
|
|
Foreign market
|
|
|
(i)
|
1,050,193
|
|
1,608,568
|
Total
|
|
|
|
5,452,435
|
|
6,701,864
|
(i)
On September 30, 2017, it includes cash and banks of R$238,422 (R$172,430 on December 31, 2016) and cash equivalents of R$47,523 (R$29,169 on December 31, 2016) of the subsidiary Braskem Idesa, available for its exclusive use.
5.
Financial investments
The information on financial investments was presented in the 2016 annual financial statements of the Company, in Note 7.
|
|
|
|
Consolidated
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
Loans and receivables
|
|
|
|
|
|
|
Time deposit investments
|
(i)
|
422,869
|
|
434,015
|
Held-for-trading
|
|
|
|
|
|
|
Letras financeiras do tesouro - LFT's
and
Letras Financeiras - LF's
|
(ii)
|
1,859,099
|
|
755,712
|
|
Other
|
|
|
2,675
|
|
756
|
Total
|
|
|
2,284,643
|
|
1,190,483
|
|
|
|
|
|
|
|
Current assets
|
|
|
2,284,643
|
|
1,190,483
|
Total
|
|
|
2,284,643
|
|
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 trade refer to Brazilian floating-rate government bonds (“LFTs”) issued by the Brazilian federal government and floating-rate bonds (“LFs”) issued by financial institutions. These bonds have maturity above three months, immediate liquidity and expected realization in the short term.
16
Braskem S.A.
Notes to the financial statements
at
September 30, 2017
All amounts in thousands of reais, unless otherwise stated
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
|
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
Customers
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market
|
|
|
|
1,049,840
|
|
869,306
|
|
1,171,241
|
|
969,072
|
|
Foreign market
|
|
|
|
2,139,923
|
|
1,215,626
|
|
4,410,232
|
|
3,137,384
|
Allowance for doubtful accounts
|
|
|
(381,725)
|
|
(380,559)
|
|
(360,803)
|
|
(358,878)
|
Total
|
|
|
|
2,808,038
|
|
1,704,373
|
|
5,220,670
|
|
3,747,578
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
2,698,969
|
|
1,634,137
|
|
1,288,954
|
|
952,689
|
Non-current assets
|
|
|
|
109,069
|
|
70,236
|
|
3,931,716
|
|
2,794,889
|
Total
|
|
|
|
2,808,038
|
|
1,704,373
|
|
5,220,670
|
|
3,747,578
|
7.
Inventories
The information on inventories was presented in the 2016 annual financial statements of the Company, in Note 9.
|
|
Consolidated
|
|
Parent company
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
Finished goods
|
-
|
3,514,391
|
|
3,444,898
|
|
2,352,342
|
|
2,314,755
|
Raw materials, production inputs and packaging
|
-
|
1,607,855
|
|
1,407,399
|
|
1,418,514
|
|
1,266,323
|
Maintenance materials
|
-
|
363,252
|
|
312,167
|
|
170,597
|
|
162,568
|
Advances to suppliers
|
|
241,976
|
|
103,267
|
|
81,752
|
|
82,618
|
Imports in transit and other
|
-
|
69,092
|
|
31,816
|
|
68,439
|
|
31,168
|
Total
|
|
5,796,566
|
|
5,299,547
|
|
4,091,644
|
|
3,857,432
|
|
|
|
|
|
|
|
|
|
Current assets
|
-
|
5,746,335
|
|
5,238,014
|
|
4,041,413
|
|
3,795,899
|
Non-current assets
|
-
|
50,231
|
|
61,533
|
|
50,231
|
|
61,533
|
Total
|
|
5,796,566
|
|
5,299,547
|
|
4,091,644
|
|
3,857,432
|
17
Braskem S.A.
Notes to the financial statements
at September 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 September 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
|
|
|
4,634
|
|
35,505
|
|
23,585
|
|
63,724
|
|
5,634
|
|
33,843
|
|
28,390
|
|
67,867
|
|
Inventories
|
|
|
64,037
|
8(c.iv)
|
2,685
|
|
|
|
66,722
|
|
|
|
5,434
|
|
|
|
5,434
|
|
Dividends and interest on capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,986
|
|
14,986
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
50
|
|
|
|
|
|
50
|
Total assets
|
|
|
68,671
|
|
38,190
|
|
23,585
|
|
130,446
|
|
5,684
|
|
39,277
|
|
43,376
|
|
88,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
62,556
|
|
121,090
|
|
262
|
|
183,908
|
|
77,461
|
|
904,090
|
|
1,226
|
|
982,777
|
Total liabilities
|
|
|
62,556
|
|
121,090
|
|
262
|
|
183,908
|
|
77,461
|
|
904,090
|
|
1,226
|
|
982,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-month period ended September 30, 2017
|
|
Nine-month period ended September 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
|
|
|
36,861
|
|
1,309,950
|
|
445,081
|
|
1,791,892
|
|
37,853
|
|
1,406,078
|
|
437,317
|
|
1,881,248
|
|
Purchases of raw materials, finished goods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
services and utilities
|
|
|
752,668
|
(i)
|
9,654,100
|
|
4,078
|
|
10,410,846
|
|
1,228,830
|
(i)
|
8,882,908
|
|
47,685
|
|
10,159,423
|
|
Financial income (expenses)
|
|
|
1,957
|
|
(39,431)
|
|
|
|
(37,474)
|
|
163
|
|
(158,281)
|
|
|
|
(158,118)
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-employment benefits plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Odebrecht Previdência Privada ("Odeprev")
|
|
|
|
30,863
|
|
30,863
|
|
|
|
|
|
25,828
|
|
25,828
|
(i)
Includes expenses with the Braskem Idesa project, of which R$65,785 related to the period ended September 30, 2017, and R$663,799 related to the period ended September 30, 2016.
18
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b)
Parent Company
|
|
|
Balances at September 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,739,662
|
|
4,739,662
|
|
Trade accounts receivable
|
|
|
|
|
|
|
|
99,270
|
|
5,336
|
|
103,865
|
|
64,292
|
|
4,634
|
|
32,932
|
|
|
|
310,329
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64,037
|
8(c.iv)
|
2,685
|
|
|
|
66,722
|
|
Dividends and interest on capital
|
|
|
|
|
|
|
|
16,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,436
|
|
Related parties
|
|
|
|
68
|
|
|
|
425
|
|
226
|
|
|
|
14,321
|
|
|
|
|
|
|
|
15,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
2,452,546
|
|
1,374,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,826,892
|
|
Related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan agreements
|
|
14,390
|
|
|
|
|
|
|
|
|
|
|
|
92
|
|
|
|
|
|
|
|
14,482
|
Total assets
|
|
2,466,936
|
|
1,374,414
|
|
|
|
116,131
|
|
5,562
|
|
103,865
|
|
78,705
|
|
68,671
|
|
35,617
|
|
4,739,662
|
|
8,989,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
24
|
|
1
|
|
|
|
893,565
|
|
14
|
|
|
|
284
|
|
40,944
|
|
90,613
|
|
|
|
1,025,445
|
|
Accounts payable to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advance to export
|
|
|
|
|
|
107,508
|
|
|
|
639,427
|
|
|
|
|
|
|
|
|
|
|
|
746,935
|
|
Other payables
|
|
|
|
|
|
|
|
222,014
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
222,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade Payables
|
|
1,164,036
|
|
10,612,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,776,389
|
|
Accounts payable to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advance to export
|
|
|
|
|
|
5,200,171
|
|
|
|
262,944
|
|
|
|
|
|
|
|
|
|
|
|
5,463,115
|
|
Payable notes
|
|
12,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,165
|
Total liabilities
|
|
1,176,225
|
|
10,612,354
|
|
5,307,679
|
|
1,115,579
|
|
902,438
|
|
|
|
284
|
|
40,944
|
|
90,613
|
|
|
|
19,246,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-month period ended September 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
|
|
|
|
2,859,565
|
|
|
|
1,878,698
|
|
95,490
|
|
233,487
|
|
512,380
|
|
36,861
|
|
1,287,042
|
|
|
|
6,903,523
|
|
Purchases of raw materials, finished products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
services and utilities
|
|
|
|
5,461,054
|
|
|
|
2,379,577
|
|
|
|
|
|
4,230
|
|
676,385
|
|
8,731,727
|
|
|
|
17,252,973
|
|
Financial income (expenses)
|
|
(22,821)
|
|
177,846
|
|
(245,036)
|
|
9
|
|
(3,331)
|
|
(3,472)
|
|
(2,557)
|
|
1,958
|
|
(39,431)
|
|
|
|
(136,835)
|
|
General and administrative expenses - Odeprev
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,476
|
|
29,476
|
19
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-month period ended September 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
|
107,479
|
|
2,254,169
|
|
|
|
1,585,396
|
|
108,291
|
|
194,775
|
|
664,179
|
|
37,583
|
|
1,373,049
|
|
|
|
6,324,921
|
|
Purchases of raw materials, finished products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
services and utilities
|
160,378
|
|
3,726,804
|
|
|
|
2,939,756
|
|
|
|
|
|
53,982
|
|
549,533
|
|
8,125,891
|
|
|
|
15,556,344
|
|
Financial income (expenses)
|
(384,047)
|
|
477,725
|
|
1,592,816
|
|
(4)
|
|
128,682
|
|
(29,436)
|
|
(11,379)
|
|
163
|
|
(158,282)
|
|
|
|
1,616,238
|
|
General and administrative expenses - Odeprev
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,185
|
|
24,185
|
20
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(c)
Agreements executed and/or renewed with related companies
In the period ended September 30, 2017, the Company engaged in the following transactions with related parties, except for those with subsidiaries of the Company:
(i)
Sales of gasoil to Refinaria de Petróleo Riograndense S.A. (“RPR”) totaled R$44,698. 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$216,542.
(iii)
Since January 2017, Braskem has held agreements for the sale of gasoline to Petrobrás Distribuidora S.A., which are renewed monthly. Sales in the period amounted to R$685,121.
(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
|
|
Sep/2017
|
|
Sep/2016
|
Remuneration
|
|
|
|
|
Short-term benefits
|
|
42,870
|
|
27,225
|
Post-employment benefit
|
|
511
|
|
269
|
Total
|
|
43,381
|
|
27,494
|
21
Braskem S.A.
Notes to the financial statements
at September 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
|
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company and subsidiaries in Brazil
|
|
|
|
|
|
|
|
|
|
|
IPI
|
|
|
|
23,285
|
|
38,909
|
|
20,799
|
|
37,859
|
|
Value-added tax on sales and services (ICMS) - normal operations
|
|
|
525,993
|
|
495,339
|
|
448,142
|
|
420,625
|
|
ICMS - credits from PP&E
|
|
|
133,091
|
|
125,145
|
|
126,212
|
|
118,984
|
|
Social integration program (PIS) and social contribution on revenue (COFINS) - normal operations
|
|
|
22,556
|
|
32,823
|
|
21,293
|
|
28,386
|
|
PIS and COFINS - credits from PP&E
|
|
|
229,349
|
|
253,503
|
|
219,661
|
|
242,475
|
|
Income tax and social contribution (IR and CSL)
|
|
|
673,618
|
|
605,058
|
|
606,956
|
|
487,079
|
|
REINTEGRA program
|
|
|
101,920
|
|
53,129
|
|
98,013
|
|
51,414
|
|
Federal supervenience
|
|
|
158,819
|
|
155,533
|
|
154,648
|
|
151,798
|
|
Other
|
|
|
|
6,672
|
|
1,046
|
|
5,596
|
|
2,694
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign subsidiaries
|
|
|
|
|
|
|
|
|
|
|
Value-added tax
|
|
|
|
228,608
|
|
132,152
|
|
|
|
|
|
Income tax (IR)
|
|
|
|
224,630
|
|
19,103
|
|
|
|
|
|
Other
|
|
|
|
4,955
|
|
2,628
|
|
|
|
|
Total
|
|
|
|
2,333,496
|
|
1,914,368
|
|
1,701,320
|
|
1,541,314
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
1,206,478
|
|
826,015
|
|
666,422
|
|
543,275
|
Non-current assets
|
|
|
1,127,018
|
|
1,088,353
|
|
1,034,898
|
|
998,039
|
Total
|
|
|
|
2,333,496
|
|
1,914,368
|
|
1,701,320
|
|
1,541,314
|
22
Braskem S.A.
Notes to the financial statements
at September 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 (%) - 9/30/2017
|
|
for the year
|
|
equity
|
|
|
|
|
|
|
Direct and indirect
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Braskem Alemanha
|
|
|
|
100.00
|
|
689,695
|
|
1,246,333
|
|
3,528,086
|
|
2,883,238
|
|
Braskem America
|
|
|
|
100.00
|
|
625,433
|
|
1,034,483
|
|
3,154,254
|
|
2,582,061
|
|
Braskem America Finance
|
|
|
|
100.00
|
|
652
|
|
398
|
|
(5,749)
|
|
(6,573)
|
|
Braskem Argentina
|
|
|
|
100.00
|
|
12,323
|
|
1,584
|
|
36,413
|
|
24,090
|
|
Braskem Austria
|
|
|
|
100.00
|
|
(288)
|
|
(145)
|
|
4,238
|
|
4,170
|
|
Braskem Chile
|
|
|
|
100.00
|
|
1,993
|
|
2,362
|
|
16,678
|
|
14,685
|
|
Braskem Holanda
|
|
|
|
100.00
|
|
1,854,300
|
|
1,152,808
|
|
3,587,953
|
|
1,320,056
|
|
Braskem Holanda Finance
|
|
|
|
100.00
|
|
(10)
|
|
(13)
|
|
(35)
|
|
(25)
|
|
Braskem Holanda Inc
|
|
|
|
100.00
|
|
1,279
|
|
1,965
|
|
3,369
|
|
2,150
|
|
Braskem Finance
|
|
|
|
100.00
|
|
2,016
|
|
47,574
|
|
(90,349)
|
|
(92,365)
|
|
Braskem Idesa
|
|
|
|
75.00
|
|
457,671
|
|
(926,086)
|
|
(2,242,610)
|
|
(4,071,517)
|
|
Braskem Idesa Serviços
|
|
|
|
75.00
|
|
7,604
|
|
2,804
|
|
17,851
|
|
9,241
|
|
Braskem Inc.
|
|
|
|
100.00
|
|
(41,833)
|
|
(50,307)
|
|
242,076
|
|
283,909
|
|
Braskem México
|
|
|
|
100.00
|
|
(14,409)
|
|
22,224
|
|
176,922
|
|
173,590
|
|
Braskem México Sofom
|
|
|
|
100.00
|
|
3,206
|
|
2,840
|
|
12,256
|
|
8,667
|
|
Braskem México Serviços
|
|
|
|
100.00
|
|
1,718
|
|
(696)
|
|
3,780
|
|
1,952
|
|
Braskem Petroquímica
|
|
|
|
100.00
|
|
110,116
|
|
173,941
|
|
2,191,947
|
|
2,081,901
|
|
Lantana
|
|
|
|
100.00
|
|
24
|
|
177
|
|
(850)
|
|
(874)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jointly-controlled investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RPR
|
|
|
|
|
33.20
|
|
76,494
|
|
62,701
|
|
194,599
|
|
175,896
|
|
Odebrecht Comercializadora de Energia S.A. ("OCE")
|
|
20.00
|
|
(570)
|
|
(255)
|
|
5,151
|
|
5,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borealis
|
|
|
|
20.00
|
|
14,765
|
|
10,538
|
|
173,644
|
|
162,629
|
23
Braskem S.A.
Notes to the financial statements
at September 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
|
|
135,397
|
|
1,851,123
|
|
3,996
|
|
1,990,516
|
|
Adjustment of profit in inventories
|
|
2,938
|
|
8,520
|
|
|
|
11,458
|
Goodwill amortization
|
|
(21,560)
|
|
|
|
|
|
(21,560)
|
Equity valuation adjustments
|
|
915
|
|
741,960
|
|
|
|
742,875
|
Currency translation adjustments
|
|
|
|
(312,806)
|
|
|
|
(312,806)
|
Capital increase
|
|
|
|
|
|
511
|
|
511
|
Provision for loss
|
|
|
|
|
|
(511)
|
|
(511)
|
Dividends and interest on equity
|
|
(20,101)
|
|
|
|
(1,793)
|
|
(21,894)
|
Balance at September 30, 2017
|
|
2,288,768
|
|
4,197,620
|
|
34,730
|
|
6,521,118
|
(c)
Equity accounting results
|
|
|
|
|
|
|
Parent company
|
|
|
|
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
|
|
|
|
|
|
|
Equity in results of subsidiaries, associate and jointly-controlled
|
|
|
|
|
|
2,001,974
|
|
1,387,065
|
Amortization of fair value adjustment
|
|
|
|
|
|
(21,560)
|
|
(23,428)
|
Reversal to subsidiaries with short-term liabilities
|
|
|
|
|
|
2,415
|
|
47,574
|
Dividends received
|
|
|
|
|
|
|
|
330
|
|
|
|
|
|
|
|
1,982,829
|
|
1,411,541
|
24
Braskem S.A.
Notes to the financial statements
at September 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
Ex consolidated Braskem Idesa
|
|
Braskem Idesa consolidated (i)
|
|
Eliminations
|
|
Consolidated
|
Assets
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
5,166,490
|
|
6,500,265
|
|
285,945
|
|
201,600
|
|
|
|
|
|
5,452,435
|
|
6,701,865
|
|
Financial investments
|
|
2,284,643
|
|
1,190,483
|
|
|
|
|
|
|
|
|
|
2,284,643
|
|
1,190,483
|
|
Trade accounts receivable
|
|
2,279,203
|
|
1,455,893
|
|
509,703
|
|
247,465
|
|
(89,937)
|
|
(69,221)
|
|
2,698,969
|
|
1,634,137
|
|
Inventories
|
|
5,402,367
|
|
4,862,571
|
|
343,968
|
|
375,443
|
|
|
|
|
|
5,746,335
|
|
5,238,014
|
|
Taxes recoverable
|
|
1,143,576
|
|
710,982
|
|
62,902
|
|
115,033
|
|
|
|
|
|
1,206,478
|
|
826,015
|
|
Other receivables
|
|
418,778
|
|
278,865
|
|
79,541
|
|
27,169
|
|
|
|
|
|
498,319
|
|
306,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,695,057
|
|
14,999,059
|
|
1,282,059
|
|
966,710
|
|
(89,937)
|
|
(69,221)
|
|
17,887,179
|
|
15,896,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale
|
|
|
|
359,704
|
|
|
|
|
|
|
|
|
|
|
|
359,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,695,057
|
|
15,358,763
|
|
1,282,059
|
|
966,710
|
|
(89,937)
|
|
(69,221)
|
|
17,887,179
|
|
16,256,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes recoverable
|
|
1,126,964
|
|
1,088,304
|
|
54
|
|
49
|
|
|
|
|
|
1,127,018
|
|
1,088,353
|
|
Deferred tax
|
|
127,139
|
|
189,613
|
|
791,598
|
|
1,463,502
|
|
|
|
|
|
918,737
|
|
1,653,115
|
|
Related parties
|
|
4,777,241
|
|
4,690,672
|
|
|
|
|
(ii)
|
(4,777,241)
|
|
(4,690,672)
|
|
|
|
|
|
Other receivables
|
|
686,040
|
|
648,511
|
|
16,713
|
|
29,823
|
|
|
|
|
|
702,753
|
|
678,334
|
|
Property, plant and equipment
|
|
18,614,901
|
|
18,814,175
|
|
11,871,468
|
|
11,171,400
|
(iii)
|
(683,271)
|
|
(648,865)
|
|
29,803,098
|
|
29,336,710
|
|
Intangible
|
|
2,590,627
|
|
2,667,708
|
|
156,955
|
|
141,379
|
|
|
|
|
|
2,747,582
|
|
2,809,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,922,912
|
|
28,098,983
|
|
12,836,788
|
|
12,806,153
|
|
(5,460,512)
|
|
(5,339,537)
|
|
35,299,188
|
|
35,565,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
44,617,969
|
|
43,457,746
|
|
14,118,847
|
|
13,772,863
|
|
(5,550,449)
|
|
(5,408,758)
|
|
53,186,367
|
|
51,821,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
4,723,663
|
|
6,335,452
|
|
176,992
|
|
278,905
|
|
(89,937)
|
|
(69,221)
|
|
4,810,718
|
|
6,545,136
|
|
Borrowings
|
|
3,528,069
|
|
2,594,463
|
|
|
|
|
|
|
|
|
|
3,528,069
|
|
2,594,463
|
|
Braskem Idesa Borrowings
|
|
|
|
|
|
9,632,412
|
|
10,437,791
|
|
|
|
|
|
9,632,412
|
|
10,437,791
|
|
Payroll and related charges
|
|
539,662
|
|
540,405
|
|
18,916
|
|
22,050
|
|
|
|
|
|
558,578
|
|
562,455
|
|
Taxes payable
|
|
1,315,273
|
|
611,231
|
|
12,082
|
|
12,849
|
|
|
|
|
|
1,327,355
|
|
624,080
|
|
Other payables
|
|
850,776
|
|
2,053,031
|
|
71,384
|
|
125,955
|
|
|
|
|
|
922,160
|
|
2,178,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,957,443
|
|
12,134,582
|
|
9,911,786
|
|
10,877,550
|
|
(89,937)
|
|
(69,221)
|
|
20,779,292
|
|
22,942,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities held for sale
|
|
|
|
95,396
|
|
|
|
|
|
|
|
|
|
|
|
95,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,957,443
|
|
12,229,978
|
|
9,911,786
|
|
10,877,550
|
|
(89,937)
|
|
(69,221)
|
|
20,779,292
|
|
23,038,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan agreements
|
|
18,489,860
|
|
20,736,604
|
|
|
|
|
|
|
|
|
|
18,489,860
|
|
20,736,604
|
|
Accounts payable to related parties
|
|
|
|
|
|
4,791,052
|
|
4,698,881
|
(ii)
|
(4,791,052)
|
|
(4,698,881)
|
|
|
|
|
|
Loan agreement Etileno XXI project
|
|
|
|
|
(v)
|
1,655,847
|
|
1,620,519
|
|
|
|
|
|
1,655,847
|
|
1,620,519
|
|
Provision for losses on subsidiaries
|
|
2,184,053
|
|
3,053,637
|
|
|
|
|
(iv)
|
(2,184,053)
|
|
(3,053,637)
|
|
|
|
|
|
Other payables
|
|
5,256,157
|
|
4,698,937
|
|
2,771
|
|
6,774
|
|
|
|
|
|
5,258,928
|
|
4,705,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,930,070
|
|
28,489,178
|
|
6,449,670
|
|
6,326,174
|
|
(6,975,105)
|
|
(7,752,518)
|
|
25,404,635
|
|
27,062,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to the Company's shareholders
|
7,730,456
|
|
2,738,590
|
|
(2,242,609)
|
|
(3,430,861)
|
|
2,242,611
|
|
3,430,861
|
|
7,730,458
|
|
2,738,590
|
|
Non-controlling interest in Braskem Idesa
|
|
|
|
|
|
|
|
|
|
(728,018)
|
|
(1,017,880)
|
|
(728,018)
|
|
(1,017,880)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,730,456
|
|
2,738,590
|
|
(2,242,609)
|
|
(3,430,861)
|
|
1,514,593
|
|
2,412,981
|
|
7,002,440
|
|
1,720,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
44,617,969
|
|
43,457,746
|
|
14,118,847
|
|
13,772,863
|
|
(5,550,449)
|
|
(5,408,758)
|
|
53,186,367
|
|
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.
25
Braskem S.A.
Notes to the financial statements
at September 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
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
Continued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
|
Net sales revenue
|
|
34,313,987
|
|
34,908,743
|
|
2,707,458
|
|
816,486
|
|
(389,239)
|
|
(107,356)
|
|
36,632,206
|
|
35,617,873
|
|
Cost of products sold
|
|
(25,848,364)
|
|
(25,375,121)
|
|
(1,569,686)
|
|
(559,555)
|
|
400,771
|
|
95,327
|
|
(27,017,279)
|
|
(25,839,349)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,465,623
|
|
9,533,622
|
|
1,137,772
|
|
256,931
|
|
11,532
|
|
(12,029)
|
|
9,614,927
|
|
9,778,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and distribution
|
|
(955,363)
|
|
(928,901)
|
|
(130,102)
|
|
(83,452)
|
|
|
|
|
|
(1,085,465)
|
|
(1,012,353)
|
|
General and administrative
|
|
(917,033)
|
|
(869,899)
|
|
(98,557)
|
|
(83,538)
|
|
21,073
|
|
31,073
|
|
(994,517)
|
|
(922,364)
|
|
Research and development
|
|
(110,984)
|
|
(119,847)
|
|
|
|
|
|
|
|
|
|
(110,984)
|
|
(119,847)
|
|
Results from equity investments
|
|
400,360
|
|
(671,387)
|
|
|
|
|
|
(371,035)
|
|
694,564
|
|
29,325
|
|
23,177
|
|
Other income (expenses), net
|
|
(289,631)
|
|
(453,644)
|
|
(12,318)
|
|
(102,636)
|
|
|
|
|
|
(301,949)
|
|
(556,280)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,592,972
|
|
6,489,944
|
|
896,795
|
|
(12,695)
|
|
(338,430)
|
|
713,608
|
|
7,151,337
|
|
7,190,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
|
|
(1,932,121)
|
|
(2,233,309)
|
|
(732,906)
|
|
(436,013)
|
|
200,538
|
|
98,019
|
|
(2,464,489)
|
|
(2,571,303)
|
|
Financial income
|
|
662,479
|
|
756,898
|
|
10,524
|
|
2,395
|
|
(200,538)
|
|
(193,349)
|
|
472,465
|
|
565,944
|
|
Exchange rate variations, net
|
|
(662,005)
|
|
(1,835,548)
|
|
646,478
|
|
(710,763)
|
|
4,438
|
|
29,836
|
|
(11,089)
|
|
(2,516,475)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,931,647)
|
|
(3,311,959)
|
|
(75,904)
|
|
(1,144,381)
|
|
4,438
|
|
(65,494)
|
|
(2,003,113)
|
|
(4,521,834)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and social contribution
|
|
4,661,325
|
|
3,177,985
|
|
820,891
|
|
(1,157,076)
|
|
(333,992)
|
|
648,114
|
|
5,148,224
|
|
2,669,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IR and CSL - current and deferred
|
|
(973,432)
|
|
(1,081,506)
|
|
(363,220)
|
|
277,441
|
|
|
|
|
|
(1,336,652)
|
|
(804,065)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period of continued operations
|
|
3,687,893
|
|
2,096,479
|
|
457,671
|
|
(879,635)
|
|
(333,992)
|
|
648,114
|
|
3,811,572
|
|
1,864,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from discontinued operations
|
|
13,499
|
|
34,538
|
|
|
|
|
|
|
|
|
|
13,499
|
|
34,538
|
|
IR and CSL - current and deferred
|
|
(4,623)
|
|
(11,213)
|
|
|
|
|
|
|
|
|
|
(4,623)
|
|
(11,213)
|
|
|
|
8,876
|
|
23,325
|
|
|
|
|
|
|
|
|
|
8,876
|
|
23,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
3,696,769
|
|
2,119,804
|
|
457,671
|
|
(879,635)
|
|
(333,992)
|
|
648,114
|
|
3,820,448
|
|
1,888,283
|
26
Braskem S.A.
Notes to the financial statements
at September 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
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
|
Profit before income tax and social contribution and
for the result with discontinued operations
|
|
4,661,325
|
|
3,212,523
|
|
820,891
|
|
(1,157,076)
|
|
(333,992)
|
|
648,114
|
|
5,148,224
|
|
2,703,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for reconciliation of profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and depletion
|
|
1,685,017
|
|
1,791,865
|
|
516,729
|
|
182,220
|
|
(32,605)
|
|
(19,044)
|
|
2,169,141
|
|
1,955,041
|
|
Results from equity investments
|
|
(400,360)
|
|
671,387
|
|
|
|
|
|
371,035
|
|
(694,564)
|
|
(29,325)
|
|
(23,177)
|
|
Interest and monetary and exchange variations, net
|
|
1,402,912
|
|
1,224,499
|
|
175,097
|
|
858,954
|
|
(4,438)
|
|
(85,003)
|
|
1,573,571
|
|
1,998,450
|
|
Gain from divestment in subsidiary
|
|
(276,816)
|
|
|
|
|
|
|
|
|
|
|
|
(276,816)
|
|
|
|
Provision for losses and write-offs of long-lived assets
|
|
115,616
|
|
16,375
|
|
362
|
|
235
|
|
|
|
|
|
115,978
|
|
16,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,187,694
|
|
6,916,649
|
|
1,513,079
|
|
(115,667)
|
|
|
|
(150,497)
|
|
8,700,773
|
|
6,650,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating working capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-for-trading financial investments
|
|
(1,016,992)
|
|
(903,701)
|
|
|
|
|
|
|
|
|
|
(1,016,992)
|
|
(903,701)
|
|
Trade accounts receivable
|
|
(863,777)
|
|
754,645
|
|
(262,238)
|
|
(144,694)
|
|
20,716
|
|
26,569
|
|
(1,105,299)
|
|
636,520
|
|
Inventories
|
|
(543,027)
|
|
675,100
|
|
49,269
|
|
(108,790)
|
|
|
|
|
|
(493,758)
|
|
566,310
|
|
Taxes recoverable
|
|
204,084
|
|
921,535
|
|
53,496
|
|
71,688
|
|
|
|
|
|
257,580
|
|
993,223
|
|
Prepaid expenses
|
|
(69,619)
|
|
30,009
|
|
(18,116)
|
|
(4,143)
|
|
|
|
|
|
(87,735)
|
|
25,866
|
|
Other receivables
|
|
50,913
|
|
(55,615)
|
|
(34,276)
|
|
(11,349)
|
|
|
|
|
|
16,637
|
|
(66,964)
|
|
Trade payables
|
|
(1,345,549)
|
|
(2,869,233)
|
|
(101,913)
|
|
(117,174)
|
|
(20,716)
|
|
(26,569)
|
|
(1,468,178)
|
|
(3,012,976)
|
|
Taxes payable
|
|
107,134
|
|
(153,173)
|
|
(116,061)
|
|
307,403
|
|
|
|
|
|
(8,927)
|
|
154,230
|
|
Advances from customers
|
|
5,801
|
|
213,516
|
|
(8,048)
|
|
42,007
|
|
|
|
|
|
(2,247)
|
|
255,523
|
|
Leniency agreement
|
|
(1,343,803)
|
|
|
|
|
|
|
|
|
|
|
|
(1,343,803)
|
|
|
|
Other payables
|
|
(170,831)
|
|
(93,327)
|
|
23,904
|
|
192,479
|
|
|
|
|
|
(146,927)
|
|
99,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from operations
|
|
2,202,028
|
|
5,436,405
|
|
1,099,096
|
|
111,760
|
|
|
|
(150,497)
|
|
3,301,124
|
|
5,397,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
(1,118,725)
|
|
(968,687)
|
|
(373,984)
|
|
(395,426)
|
|
|
|
|
|
(1,492,709)
|
|
(1,364,113)
|
|
Income tax and social contribution paid
|
|
(675,338)
|
|
(847,012)
|
|
(1,370)
|
|
|
|
|
|
|
|
(676,708)
|
|
(847,012)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated by operating activities
|
|
407,965
|
|
3,620,706
|
|
723,742
|
|
(283,666)
|
|
|
|
(150,497)
|
|
1,131,707
|
|
3,186,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the sale of fixed assets
|
|
450,000
|
|
|
|
|
|
|
|
|
|
|
|
450,000
|
|
|
Acquisitions to property, plant and equipment and intangible assets
|
(1,451,482)
|
|
(1,135,312)
|
|
(76,241)
|
|
(772,925)
|
|
|
|
150,497
|
|
(1,527,723)
|
|
(1,757,740)
|
Other investiments
|
|
1,634
|
|
38,784
|
|
|
|
|
|
|
|
|
|
1,634
|
|
38,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(999,848)
|
|
(1,096,528)
|
|
(76,241)
|
|
(772,925)
|
|
|
|
150,497
|
|
(1,076,089)
|
|
(1,718,956)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term and long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obtained
|
|
2,469,210
|
|
2,821,945
|
|
|
|
|
|
|
|
|
|
2,469,210
|
|
2,821,945
|
|
Payments
|
|
(3,308,590)
|
|
(3,755,480)
|
|
|
|
|
|
|
|
|
|
(3,308,590)
|
|
(3,755,480)
|
Braskem Idesa borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obtained
|
|
|
|
|
|
187,959
|
|
503,921
|
|
|
|
|
|
187,959
|
|
503,921
|
|
Payments
|
|
|
|
|
|
(710,821)
|
|
(370,041)
|
|
|
|
|
|
(710,821)
|
|
(370,041)
|
Related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obtained loans (payment of loans )
|
|
20,637
|
|
(1,184,419)
|
|
(20,637)
|
|
1,184,419
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
(42)
|
|
(998,985)
|
|
|
|
|
|
|
|
|
|
(42)
|
|
(998,985)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net provided (used) in financing activities
|
|
(818,785)
|
|
(3,116,939)
|
|
(543,499)
|
|
1,318,299
|
|
|
|
|
|
(1,362,284)
|
|
(1,798,640)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange variation on cash of foreign subsidiaries
|
|
76,893
|
|
489,396
|
|
(19,656)
|
|
37,243
|
|
|
|
|
|
57,237
|
|
526,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
(1,333,775)
|
|
(103,365)
|
|
84,346
|
|
298,951
|
|
|
|
|
|
(1,249,429)
|
|
195,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
5,166,490
|
|
6,805,258
|
|
285,945
|
|
433,590
|
|
|
|
|
|
5,452,435
|
|
7,238,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
(1,333,775)
|
|
(103,365)
|
|
84,346
|
|
298,951
|
|
|
|
|
|
(1,249,429)
|
|
195,586
|
27
Braskem S.A.
Notes to the financial statements
at September 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
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
depreciation/
|
|
|
|
|
|
depreciation/
|
|
|
|
|
|
|
Cost
|
|
depletion
|
|
Net
|
|
Cost
|
|
depletion
|
|
Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
474,058
|
|
|
|
474,058
|
|
471,655
|
|
|
|
471,655
|
Buildings and improvements
|
|
|
5,920,952
|
|
(1,382,381)
|
|
4,538,571
|
|
5,530,714
|
|
(1,111,642)
|
|
4,419,072
|
Machinery, equipment and installations
|
|
38,859,922
|
|
(18,133,660)
|
|
20,726,262
|
|
36,804,409
|
|
(16,595,497)
|
|
20,208,912
|
Projects and stoppage in progress
|
|
|
3,297,666
|
|
|
|
3,297,666
|
|
3,495,965
|
|
|
|
3,495,965
|
Other
|
|
|
1,529,746
|
|
(763,205)
|
|
766,541
|
|
1,404,759
|
|
(663,653)
|
|
741,106
|
Total
|
|
|
50,082,344
|
|
(20,279,246)
|
|
29,803,098
|
|
47,707,502
|
|
(18,370,792)
|
|
29,336,710
|
Capitalized charges in the nine-month period ended September 30, 2017 were R$100,211 (R$333,278 on September 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
|
|
|
|
|
|
|
|
|
Sep/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
|
|
353,295
|
|
(116,879)
|
|
236,416
|
|
339,512
|
|
(110,880)
|
|
228,632
|
Software and use rights
|
|
585,315
|
|
(388,797)
|
|
196,518
|
|
566,673
|
|
(364,336)
|
|
202,337
|
Contracts with customers and suppliers
|
|
754,350
|
|
(498,576)
|
|
255,774
|
|
772,888
|
|
(453,644)
|
|
319,244
|
Total
|
|
|
4,880,682
|
|
(2,133,100)
|
|
2,747,582
|
|
4,866,795
|
|
(2,057,708)
|
|
2,809,087
|
There were no significant events or circumstances in the period ended September 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.
28
|
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
|
|
|
13.
|
Borrowings
|
|
|
|
The information on borrowings was presented in the 2016 annual financial statements of the Company, in Note 15.
|
|
|
(a)
|
The Company has borrowings contracted from financial institutions and the capital markets that include contractual obligations (covenants) requiring the presentation of its audited financial statements within the legal deadline (or within 120 days from the end of the fiscal year).
|
|
|
|
In the quarterly financial statements as of June 30, 2017, the company was in unremedied breach with regard to the presentation of audited financial statements within the legal timeframe involving contracts with government agents in the amount of R$40,481, which were reclassified to current liabilities in accordance with CPC 26 and its corresponding IAS 1 (Presentation of Financial Statements).
|
|
|
|
In accordance with the aforementioned accounting standards, reclassification is required in situations in which the breach of certain contractual obligations entitles creditors to request the prepayment of obligations in the short term. In this context, Braskem notes that none of its creditors requested said prepayment of obligations and that it has been settling these obligations in accordance with their original maturity schedule.
|
|
|
|
The breach of said obligations was automatically remedied with the presentation of the audited financial statements in the third quarter of 2017, with said creditors no longer entitled to request prepayment, reclassified from current liabilities back to non-current liabilities.
|
|
|
29
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b)
Borrowings
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
Annual financial charges (%)
|
|
Sep/2017
|
|
Dec/2016
|
Foreign currency
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
|
US dollar exchange variation + interest between 5.38 and 7.38
|
|
13,651,816
|
|
14,216,539
|
|
Advances on exchange contracts
|
|
|
|
US dollar exchange variation + 3.52%
|
|
645,933
|
|
362,779
|
|
Export prepayment
|
|
|
|
Note 13 (c)
|
|
|
|
997,486
|
|
777,801
|
|
BNDES
|
|
|
|
US dollar exchange variation + interest between 6.82 and 6.98
|
|
122,860
|
|
201,147
|
|
Export credit notes
|
|
|
|
US dollar exchange variation + interest between 7.30 and 8.10
|
|
1,144,348
|
|
1,173,127
|
|
Working capital
|
|
|
|
US dollar exchange variation + 1.74% above Libor
|
|
1,353,027
|
|
1,644,487
|
|
Transactions costs
|
|
|
|
|
|
|
|
(208,173)
|
|
(199,570)
|
|
|
|
|
|
|
|
|
|
17,707,297
|
|
18,176,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
2,312,395
|
|
1,128,524
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
15,394,902
|
|
17,047,786
|
|
Total
|
|
|
|
|
|
|
|
17,707,297
|
|
18,176,310
|
|
|
|
|
|
|
|
|
|
|
|
|
Local currency
|
|
|
|
|
|
|
|
|
|
|
|
Export credit notes
|
|
|
|
8.00
|
|
|
|
153,996
|
|
381,632
|
|
Export credit notes
|
|
|
|
105.00 e 112.50 of CDI
|
|
|
(i)
|
1,720,330
|
|
1,717,262
|
|
BNDES
|
|
|
|
TJLP + interest between 0.00 and 3.58
|
|
1,122,166
|
|
1,527,765
|
|
BNDES
|
|
|
|
SELIC + interest between 2.32 and 2.78
|
|
533,936
|
|
602,648
|
|
BNDES
|
|
|
|
Interest between 3.50 and 7.00
|
|
|
|
218,186
|
|
288,486
|
|
BNB/ FINEP/ FUNDES
|
|
|
|
6.23
|
|
|
|
499,106
|
|
580,647
|
|
FINAME
|
|
|
|
TJLP + 1.90
|
|
|
|
1,595
|
|
1,850
|
|
Fundo de Desenvolvimento do Nordeste (FDNE)
|
|
|
|
6.50
|
|
|
|
45,222
|
|
46,991
|
|
Other
|
|
|
|
CDI + 0.04
|
|
|
|
24,776
|
|
19,321
|
|
Transactions costs
|
|
|
|
|
|
|
|
(8,681)
|
|
(11,845)
|
|
|
|
|
|
|
|
|
|
4,310,632
|
|
5,154,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
1,215,674
|
|
1,465,939
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
3,094,958
|
|
3,688,818
|
|
Total
|
|
|
|
|
|
|
|
4,310,632
|
|
5,154,757
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency and local currency
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
3,528,069
|
|
2,594,463
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
18,489,860
|
|
20,736,604
|
|
Total
|
|
|
|
|
|
|
|
22,017,929
|
|
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
|
|
|
|
|
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
Foreign currency
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
1,181,322
|
|
651,471
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
2,243,414
|
|
2,774,213
|
|
|
|
|
|
|
|
|
|
3,424,736
|
|
3,425,684
|
Local currency
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
1,215,674
|
|
1,465,938
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
3,094,958
|
|
3,688,819
|
|
|
|
|
|
|
|
|
|
4,310,632
|
|
5,154,757
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency and local currency
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
2,396,996
|
|
2,117,409
|
Non-current liabilities
|
|
|
|
|
|
|
|
5,338,372
|
|
6,463,032
|
Total
|
|
|
|
|
|
|
|
7,735,368
|
|
8,580,441
|
30
Braskem S.A.
Notes to the financial statements
at September 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)
|
|
Sep/2017
|
|
Dec/2016
|
Jan-2013
|
|
|
200,000
|
|
Nov-2022
|
|
US dollar exchange variation + semiannual Libor + 1.10
|
|
351,474
|
|
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
|
|
218,265
|
|
222,314
|
set-2017
|
|
|
135,000
|
|
Mar-2027
|
|
US dollar exchange variation + quarterly Libor + 1.61
|
|
427,747
|
|
|
Total
|
|
|
453,000
|
|
|
|
|
|
997,486
|
|
777,801
|
(d)
Payment schedule
The maturity profile of amounts maturing in the long-term is as follows:
|
|
Consolidated
|
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
2018
|
|
356,309
|
|
2,379,757
|
2019
|
|
3,121,258
|
|
3,310,384
|
2020
|
|
2,445,343
|
|
2,442,493
|
2021
|
|
3,626,334
|
|
3,667,632
|
2022
|
|
1,743,078
|
|
1,745,936
|
2023
|
|
58,664
|
|
13,772
|
2024
|
|
2,438,311
|
|
2,461,086
|
2025
|
|
50,058
|
|
3,839
|
2026
|
|
48,274
|
|
1,391
|
2027 and thereafter
|
|
4,602,231
|
|
4,710,314
|
Total
|
|
18,489,860
|
|
20,736,604
|
(e)
Guarantees
Braskem gave collateral for part of its borrowings as follows:
|
|
|
|
Total debt
|
|
Total
|
|
|
Loans
|
|
Maturity
|
|
Sep/2017
|
|
guaranteed
|
|
Guarantees
|
|
|
|
|
|
|
|
|
|
BNB
|
|
Dec-2022
|
|
119,354
|
|
119,354
|
|
Mortgage of plants, pledge of machinery and equipment
|
BNB
|
|
Aug-2024
|
|
195,206
|
|
195,206
|
|
Bank surety
|
BNDES
|
|
Jan-2022
|
|
1,997,148
|
|
1,997,148
|
|
Mortgage of plants, land and property, pledge of machinery and equipment
|
FUNDES
|
|
Jun-2020
|
|
87,856
|
|
87,856
|
|
Mortgage of plants, land and property, pledge of machinery and equipment
|
FINEP
|
|
Jul-2024
|
|
96,690
|
|
96,690
|
|
Bank surety
|
FINAME
|
|
Feb-2022
|
|
1,595
|
|
1,595
|
|
Pledge of equipment
|
Total
|
|
|
|
2,497,849
|
|
2,497,849
|
|
|
31
Braskem S.A.
Notes to the financial statements
at September 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)
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
Project finance
|
|
|
(i)
|
|
|
|
|
|
|
|
Project finance I
|
|
700,000
|
|
Feb-2027
|
|
Us dollar exchange variation + quarterly Libor + 3.25
|
|
2,132,263
|
|
2,274,754
|
Project finance II
|
|
189,996
|
|
Feb-2027
|
|
Us dollar exchange variation + 6.17
|
|
609,532
|
|
663,856
|
Project finance III
|
|
600,000
|
|
Feb-2029
|
|
Us dollar exchange variation + 4.33
|
|
1,781,193
|
|
1,911,857
|
Project finance IV
|
|
680,004
|
|
Feb-2029
|
|
Us dollar exchange variation + quarterly Libor + 3.88
|
|
1,976,582
|
|
2,111,234
|
Project finance V
|
|
400,000
|
|
Feb-2029
|
|
Us dollar exchange variation + quarterly Libor + 4.65
|
|
1,189,876
|
|
1,276,449
|
Project finance VI
|
|
89,994
|
|
Feb-2029
|
|
Us dollar exchange variation + quarterly Libor + 2.73
|
|
266,901
|
|
286,480
|
Project finance VII
|
|
533,095
|
|
Feb-2029
|
|
Us dollar exchange variation + quarterly Libor + 4.64
|
|
1,585,773
|
|
1,701,229
|
Transactions costs
|
|
|
|
|
|
|
|
(101,173)
|
|
(104,157)
|
Total
|
|
3,193,089
|
|
|
|
|
|
9,440,947
|
|
10,121,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other borrowings
|
|
|
|
|
|
|
|
|
|
|
VAT borrowings
|
|
|
(ii)
|
Nov-2029
|
|
2.00% above TIIE (*)
|
|
|
|
13,500
|
Borrowings for working capital
|
|
Dec
-2017
|
|
Us dollar exchange variation + quarterly Libor + 2,30
|
|
191,465
|
|
302,589
|
|
|
|
|
|
|
|
|
191,465
|
|
316,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,632,412
|
|
10,437,791
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
9,632,412
|
|
10,437,791
|
Total
|
|
|
|
|
|
|
|
9,632,412
|
|
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 recourse or with recourse limited to shareholders.
(ii)
Financing obtained in Mexican peso and paid exclusively with IVA refund, settled in January 2017.
Project finance borrowings include contractual obligations (covenants) that require, among other things, the presentation of the audited financial statements within the legal timeframe (or within 120 days from the end of the fiscal year).
On the reporting date of the quarterly financial statements of September 30, 2017, the company was in unremedied breach of its obligation to present audited financial statements within the legal timeframe, as well as of other obligations typical to contracts of this nature. As a result, the entire balance of non-current liabilities, in the amount of R$8,700,025, was reclassified to current liabilities, in accordance with CPC 26 and its corresponding accounting standard IAS 1 (Presentation of Financial Statements).
In accordance with the aforementioned accounting standards, reclassification is required in situations in which the breach of certain contractual obligations entitles creditors to request the prepayment of obligations in the short term. In this context, note that none of the creditors requested said prepayment of obligations and that Braskem Idesa has been settling its debt service obligations in accordance with their original maturity schedule.
Furthermore, Braskem Idesa has been negotiating approval of such breaches with its creditors in order to reclassify the entire amount reclassified from current liabilities back to non-current liabilities.
32
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
The following amortization schedule presents the original long-term maturities, excluding the reclassification to current liabilities arising from the aforementioned breach of contractual obligations.
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
2018
|
|
175,262
|
|
709,793
|
2019
|
|
715,228
|
|
736,885
|
2020
|
|
839,254
|
|
864,149
|
2021
|
|
958,939
|
|
986,914
|
2022
|
|
798,872
|
|
822,235
|
2023
|
|
1,057,887
|
|
1,088,155
|
2024
|
|
1,144,621
|
|
1,177,017
|
2025
|
|
1,144,233
|
|
1,176,346
|
2026
|
|
1,007,492
|
|
1,035,586
|
2027 and thereafter
|
|
858,237
|
|
894,606
|
Total
|
|
8,700,025
|
|
9,491,686
|
33
Braskem S.A.
Notes to the financial statements
at September 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
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and banks
|
|
|
|
|
|
|
|
1,424,383
|
|
2,178,611
|
|
1,424,383
|
|
2,178,611
|
Financial investments in Brazil
|
|
|
|
Loans and receivables
|
|
|
|
2,977,859
|
|
2,914,685
|
|
2,977,859
|
|
2,914,685
|
Financial investments abroad
|
|
|
|
Held-for-trading
|
|
Level 2
|
|
1,050,193
|
|
1,608,568
|
|
1,050,193
|
|
1,608,568
|
|
|
|
|
|
|
|
|
5,452,435
|
|
6,701,864
|
|
5,452,435
|
|
6,701,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial investments
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
LFT's and LF's
|
|
|
|
Held-for-trading
|
|
Level 2
|
|
1,859,099
|
|
755,712
|
|
1,859,099
|
|
755,712
|
Time deposit investments
|
|
|
|
Loans and receivables
|
|
Level 2
|
|
422,869
|
|
434,015
|
|
422,869
|
|
434,015
|
Other
|
|
|
|
Held-to-maturity
|
|
Level 2
|
|
2,675
|
|
756
|
|
2,675
|
|
756
|
|
|
|
|
|
|
|
|
2,284,643
|
|
1,190,483
|
|
2,284,643
|
|
1,190,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
6
|
|
|
|
|
|
2,808,038
|
|
1,704,373
|
|
2,808,038
|
|
1,704,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
|
|
|
|
5,069,823
|
|
6,746,822
|
|
5,069,823
|
|
6,746,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency - Bond
|
|
|
|
|
|
Level 1
|
|
13,651,816
|
|
14,216,539
|
|
17,131,263
|
|
12,509,981
|
Foreign currency - other borrowings
|
|
|
|
|
|
|
|
4,263,654
|
|
4,159,341
|
|
4,263,654
|
|
4,159,341
|
Local currency
|
|
|
|
|
|
|
|
4,319,313
|
|
5,166,602
|
|
4,319,313
|
|
5,166,602
|
|
|
|
|
|
|
|
|
22,234,783
|
|
23,542,482
|
|
25,714,230
|
|
21,835,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Braskem Idesa borrowings
|
|
14
|
|
|
|
|
|
9,733,585
|
|
10,541,948
|
|
9,733,585
|
|
10,541,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan ton non-controlling
shareholder of Braskem Idesa
|
|
|
|
|
|
|
|
1,655,847
|
|
1,620,519
|
|
1,655,847
|
|
1,620,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leniency agreement
|
|
19.3
|
|
|
|
|
|
1,586,912
|
|
2,853,230
|
|
1,586,912
|
|
2,853,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other payables (BNDESPAR)
|
|
|
|
|
|
|
|
|
|
176,846
|
|
|
|
176,846
|
34
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
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
|
|
Sep/2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge accounting transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar put option
|
|
15.2.1 (a.i)
|
|
Level 2
|
|
Real
|
|
Dollar
|
|
|
|
(4,184)
|
|
(5,848)
|
|
|
|
(10,032)
|
Exchange swap
|
|
15.2.1 (a.ii)
|
Level 2
|
|
CDI
|
|
Dollar + Interests
|
|
461,335
|
|
857,099
|
|
(69,693)
|
|
8,336
|
|
795,742
|
Interest rate swaps
|
|
|
|
Level 2
|
|
Libor
|
|
Fixed rates
|
|
293,820
|
|
(266)
|
|
20,839
|
|
(22,794)
|
|
(2,221)
|
|
|
|
|
|
|
|
|
|
|
755,155
|
|
852,649
|
|
(54,702)
|
|
(14,458)
|
|
783,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
(8,387)
|
|
|
|
|
|
(10,032)
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
(29,308)
|
|
|
|
|
|
(16,177)
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
29,042
|
|
|
|
|
|
47,725
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
861,302
|
|
|
|
|
|
761,973
|
|
|
|
|
|
|
|
|
|
|
|
|
852,649
|
|
|
|
|
|
783,489
|
(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 (e.g., electricity, payroll, etc.).
With the exclusive purpose of protecting cash flow, the program uses two strategies with derivative instruments: (i) purchase of put options and (ii) purchase of put options associated with the sale of call options ("Collar ").
Both alternatives offer protection to Braskem if the local currency appreciates, with the difference that the Collar strategy can also result in negative adjustments to the Company if the USD/BRL exceeds the call exercise price. Eventual losses, however, will always be offset by gains in competitiveness resulting from costs in lower Reais, when observed in US Dollars.
On September 30, 2017, Braskem had total notional value purchased in puts of R$3.8 billion, at the average exercise price of 2.96 R$/US$. Concomitantly, the Company also had total notional value sold in calls of R$2.2 billion, at the average exercise price of R$4.26. The contracted operations have a maximum maturity of 18 months.
Such operations were designed for the hedge accounting of cash flows as from January 1, 2017, and seek to hedge future dollar-denominated revenues with maturities in months coinciding with the maturity of the derivatives.
Dollar put options were recognized initially at fair value and measured subsequently at their fair value at the end of each period. Any gain or loss related to the effective portion of dollar options (intrinsic value) is recognized as other comprehensive income or loss under shareholders' equity. Any gain or loss related to the ineffective portion and the extrinsic value of the option are immediately recognized in financial results.
35
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(a.ii) Swaps related to export credit notes (NCE)
Identification
|
|
|
|
|
|
Maturity
|
|
|
|
|
|
Hedge
|
|
|
Fair value
|
|
Nominal value
|
|
Financial charges for year
|
|
|
Sep/2017
|
|
Dec/2016
|
Swap NCE I to III
|
|
400,000
|
|
Exchange variation + 6.15%
|
|
Aug-2019
|
|
406,530
|
|
438,201
|
Swap NCE IV to VII
|
|
450,000
|
|
Exchange variation + 4.93% to 7.90%
|
|
Apr-2019
|
|
389,212
|
|
418,898
|
Total
|
|
850,000
|
|
|
|
|
|
795,742
|
|
857,099
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives operations
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
(4,203)
|
Current liabilities
|
|
|
|
|
|
|
|
33,769
|
|
|
Non-Current liabilities
|
|
|
|
|
|
|
|
761,973
|
|
861,302
|
Total
|
|
|
|
|
|
795,742
|
|
857,099
|
15.3.
Non-derivative liabilities designated for export hedge accounting
(a.i) Future exports in U.S. dollars
On September 30, 2017, exports that were designated and not yet realized are shown below:
|
|
|
|
|
|
Total nominal value
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
213,000
|
2018
|
|
|
|
|
|
787,894
|
2019
|
|
|
|
|
|
733,980
|
2020
|
|
|
|
|
|
724,000
|
2021
|
|
|
|
|
|
716,000
|
2022
|
|
|
|
|
|
719,000
|
2023
|
|
|
|
|
|
718,371
|
2024
|
|
|
|
|
|
688,854
|
|
|
|
|
|
|
5,301,099
|
The following table shows the changes in financial instruments designated for this hedge in the period:
|
|
|
|
US$
|
|
|
|
|
|
|
Discontinued
|
|
|
|
|
|
|
Dec/2016
|
|
hedge
|
|
Sep/2017
|
|
|
|
|
|
|
|
|
|
Designated balance
|
|
|
|
5,301,099
|
|
(402,325)
|
|
4,898,774
|
On September 30, 2017, the maturities of financial liabilities designated, within the scope of the consolidated balance sheet, were as follows:
36
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
|
|
|
|
|
|
Total nominal value
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
598,568
|
2019
|
|
|
|
|
|
733,980
|
2020
|
|
|
|
|
|
724,000
|
2021
|
|
|
|
|
|
716,000
|
2022
|
|
|
|
|
|
719,000
|
2023
|
|
|
|
|
|
718,372
|
2024
|
|
|
|
|
|
688,854
|
|
|
|
|
|
|
4,898,774
|
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$402,235 was discontinued prospectively. Exchange variation on the discontinued amount, of R$495,860, which is recorded under Shareholders' Equity as “Other comprehensive income” (OCI) will be taken to net financial income (expenses) as from October 2017, as the hedged exports are realized.
|
|
|
|
Conversion rate
|
|
|
|
|
|
|
Total nominal
|
|
at Inception
|
|
Closing rate
|
|
Gross nominal
|
|
|
value US$
|
|
R$/US$
|
|
R$/US$
|
|
value
|
|
|
|
|
|
|
|
|
|
Hedge descontinued - Fourth quarter 2017
|
213,000
|
|
2.0017
|
|
3.1684
|
|
248,507
|
Hedge descontinued - First quarter 2018
|
|
189,325
|
|
2.0017
|
|
3.3082
|
|
247,353
|
|
|
402,325
|
|
|
|
|
|
495,860
|
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 nine-month period ended September 30, 2017:
|
|
|
|
Conversion rate
|
|
|
|
|
|
|
Total nominal
|
|
at Inception
|
|
Closing rate
|
|
Gross nominal
|
|
|
value US$
|
|
R$
/US$
|
|
R$
/US$
|
|
value
|
|
|
|
|
|
|
|
|
|
First quarter
|
|
201,277
|
|
2.0017
|
|
3.2400
|
|
249,241
|
Second quarter
|
|
208,135
|
|
2.0017
|
|
3.2015
|
|
249,721
|
Third quarter
|
|
207,273
|
|
2.0017
|
|
3.3302
|
|
275,362
|
|
|
616,685
|
|
|
|
|
|
774,324
|
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
|
456,301
|
|
(155,142)
|
|
301,159
|
Exchange variation transferred to profit or loss / IR and CSL
|
774,324
|
|
(263,270)
|
|
511,054
|
At September 30, 2017
|
(6,209,302)
|
|
2,111,163
|
|
(4,098,139)
|
37
Braskem S.A.
Notes to the financial statements
at September 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 September 30, 2017, sales designated and not yet realized are as follows:
|
|
|
|
|
|
Nominal value
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
53,889
|
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
|
|
|
|
|
|
|
2,995,951
|
The following table shows the changes in financial instruments designated for these hedge operations in the period:
|
|
|
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
Realization
|
|
Realization of
|
|
|
|
|
|
|
Dec/2016
|
|
in the period
|
|
discontinued hedge
|
|
Sep/2017
|
|
|
|
|
|
|
|
|
|
|
|
Designated balance
|
|
|
|
3,113,173
|
|
(129,363)
|
|
229
|
|
2,984,039
|
On September 30, 2017, the maturities of financial liabilities designated were distributed as follows:
|
|
|
|
|
|
Nominal value
|
|
|
|
|
|
|
US$
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
53,793
|
2018
|
|
|
|
|
|
221,390
|
2019
|
|
|
|
|
|
228,850
|
2020
|
|
|
|
|
|
266,187
|
2021
|
|
|
|
|
|
302,816
|
2022
|
|
|
|
|
|
252,723
|
2023
|
|
|
|
|
|
332,458
|
2024
|
|
|
|
|
|
358,873
|
2025
|
|
|
|
|
|
357,221
|
2026
|
|
|
|
|
|
308,650
|
2027
|
|
|
|
|
|
150,419
|
2028
|
|
|
|
|
|
124,347
|
2029
|
|
|
|
|
|
26,312
|
|
|
|
|
|
|
2,984,039
|
38
Braskem S.A.
Notes to the financial statements
at September 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, in the period ended September 30, 2017 (US$229), which is recorded in Braskem Idesa’s shareholders’ equity under “Other comprehensive income” and will be transferred to financial income (expenses) according to the schedule of future hedged sales:
|
|
|
|
Conversion rate
|
|
|
|
|
|
|
|
|
Total nominal
|
|
at Inception
|
|
Closing rate
|
|
Total nominal
|
|
Gross nominal
|
|
|
value US$
|
|
MXN/US$
|
|
MXN/US$
|
|
value MXN
|
|
value
|
|
|
|
|
|
|
|
|
|
|
|
Hedge descontinued
|
11,912
|
|
13.4541
|
|
17.9915
|
|
54,050
|
|
9,437
|
|
|
|
|
|
|
|
|
54,050
|
|
9,437
|
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 nine-month period ended September 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
|
|
13.6649
|
|
20.0871
|
|
187,361
|
|
30,917
|
Second quarter
|
|
47,896
|
|
13.6560
|
|
18.5659
|
|
235,165
|
|
42,992
|
Third quarter
|
|
52,293
|
|
13.6536
|
|
17.8489
|
|
219,385
|
|
38,919
|
|
|
129,363
|
|
|
|
|
|
641,911
|
|
112,828
|
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
|
1,248,177
|
|
(374,453)
|
|
873,724
|
Exchange variation transferred to profit or loss / IR
|
112,828
|
|
(33,848)
|
|
78,980
|
At September 30, 2017
|
(2,821,047)
|
|
847,049
|
|
(1,973,998)
|
39
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
15.4.
Credit quality of financial assets
(a)
Trade accounts receivable
On September 30, 2017, the credit ratings for the domestic market were as follows:
|
|
|
|
|
(%)
|
|
|
|
Sep/2017
|
|
Dec/2016
|
1
|
Minimum risk
|
|
12.76
|
|
8.92
|
2
|
Low risk
|
|
43.90
|
|
39.98
|
3
|
Moderate risk
|
|
23.36
|
|
30.51
|
4
|
High risk
|
|
16.22
|
|
16.48
|
5
|
Very high risk
|
(i)
|
3.76
|
|
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
|
September 30, 2017
|
0.07%
|
|
0.09%
|
December 31, 2016
|
0.18%
|
|
0.04%
|
September 30, 2016
|
0.23%
|
|
0.10%
|
40
|
Braskem S.A.
Notes to the financial statements
at September 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.
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Financial assets with risk assessment
|
|
|
|
|
|
|
AAA
|
|
|
4,986,329
|
|
3,871,105
|
|
AA+
|
|
|
5,028
|
|
241,359
|
|
AA
|
|
|
61,389
|
|
5,370
|
|
AA-
|
|
|
344,217
|
|
654,232
|
|
A+
|
|
|
689,264
|
|
2,426,078
|
|
A
|
|
|
1,340,068
|
|
364,198
|
|
A-
|
|
|
|
|
209,175
|
|
BBB+
|
|
|
289,221
|
|
116,987
|
|
BBB
|
|
|
16,212
|
|
|
|
|
|
|
7,731,728
|
|
7,888,504
|
|
|
|
|
|
|
|
|
Financial assets without risk assessment
|
|
|
|
|
|
|
Other financial assets with no risk assessment
|
|
(i)
|
5,350
|
|
3,843
|
|
|
|
|
5,350
|
|
3,843
|
|
|
|
|
|
|
|
|
Total
|
|
|
7,737,078
|
|
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 September 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.
|
41
|
Braskem S.A.
Notes to the financial statements
at September 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 September 30, 2017, with a probability of 5%, and under normal market conditions, was estimated by the Company at US$40,517 for the NCE exchange rate swap (Note 15.2.1(a.ii)) and at US$6,634 for put and call options (Note 15.2.1(a.i)) and US$11,151 for the swap of Libor related to Braskem Idesa’s project.
|
|
|
(c)
|
Selection of scenarios
|
|
|
(c.1)
|
Probable scenario
|
|
|
|
The Focus
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 September 29, 2017. According to the Market Readout, at the end of 2017, the U.S. dollar will depreciate by 0.25% against the Brazilian real, compared to the closing PTAX rate at September 29, 2017, while the Selic rate will be 7% 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 0.5% 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.
|
42
Braskem S.A.
Notes to the financial statements
at September 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 and MTM
|
|
2,624
|
|
(259,757)
|
|
(519,514)
|
BNDES
|
|
310
|
|
(30,715)
|
|
(61,430)
|
Working capital / structured operations
|
|
4,437
|
|
(439,282)
|
|
(878,565)
|
Export prepayments
|
|
40,913
|
|
(4,050,415)
|
|
(8,100,831)
|
Braskem Idesa borrowings
|
|
4,644
|
|
(459,767)
|
|
(919,534)
|
Financial investments abroad
|
|
23,841
|
|
(2,360,237)
|
|
(4,720,473)
|
Swaps
|
|
(4,190)
|
|
414,770
|
|
833,730
|
Dollar put option
|
|
(1,150)
|
|
79,378
|
|
428,191
|
Financial investments abroad
|
|
(4,737)
|
|
468,965
|
|
937,930
|
|
|
|
|
|
|
|
Selic interest rate
|
|
|
|
|
|
|
BNDES
|
|
22,125
|
|
(38,047)
|
|
(78,071)
|
|
|
|
|
|
|
|
Libor floating interest rate
|
|
|
|
|
|
|
Working capital / structured operations
|
|
(3,864)
|
|
(19,319)
|
|
(38,639)
|
Export prepayments
|
|
(3,841)
|
|
(19,207)
|
|
(38,414)
|
Swaps
|
|
4,950
|
|
9,159
|
|
11,848
|
|
|
|
|
|
|
|
CDI interest rate
|
|
|
|
|
|
|
Swaps NCE
|
|
20,289
|
|
(33,999)
|
|
(68,648)
|
External loans / Other domestic market
|
|
24
|
|
(39)
|
|
(78)
|
Swaps NCA
|
|
42,069
|
|
(72,960)
|
|
(150,501)
|
Financial investments in local currency
|
|
(16,686)
|
|
27,224
|
|
54,077
|
|
|
|
|
|
|
|
|
|
Probable
|
|
Possible adverse
|
|
Extreme adverse
|
Instrument / Sensitivity
|
|
6.5%
|
|
7.5%
|
|
8.0%
|
|
|
|
|
|
|
|
TJLP interest rate
|
|
|
|
|
|
|
BNDES
|
|
22,671
|
|
(23,030)
|
|
(46,423)
|
Other government agents
|
|
33
|
|
(33)
|
|
(67)
|
43
Braskem S.A.
Notes to the financial statements
at September 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
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
Brazil
|
|
|
|
|
|
|
|
|
|
|
IPI
|
|
|
73,326
|
|
59,323
|
|
70,403
|
|
57,191
|
|
IR and CSL
|
|
|
337,119
|
|
222,680
|
|
225,784
|
|
119,573
|
|
ICMS
|
|
|
247,083
|
|
182,034
|
|
239,163
|
|
173,915
|
|
PIS and COFINS
|
|
|
129,002
|
|
59,105
|
|
126,757
|
|
58,252
|
|
PERT installment
|
|
(a)
|
98,840
|
|
|
|
98,067
|
|
|
|
Other
|
|
|
49,424
|
|
62,743
|
|
29,830
|
|
38,987
|
|
|
|
|
|
|
|
|
|
|
|
Other countries
|
|
|
|
|
|
|
|
|
|
|
IR
|
|
|
279,143
|
|
46,670
|
|
|
|
|
|
Value-added tax
|
|
|
158,760
|
|
15,622
|
|
|
|
|
Total
|
|
|
1,372,697
|
|
648,177
|
|
790,004
|
|
447,918
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
1,327,355
|
|
624,080
|
|
745,343
|
|
424,088
|
Non-current liabilities
|
|
|
45,342
|
|
24,097
|
|
44,661
|
|
23,830
|
Total
|
|
|
1,372,697
|
|
648,177
|
|
790,004
|
|
447,918
|
(a)
Special Tax Compliance Program (“PERT”)
In October 2017, Braskem and its subsidiary Braskem Petroquímica adhered to PERT, a federal government tax installment/amnesty program implemented through Decree MP 783, of May 31, 2017, indicating the payment of tax and social security liabilities in the aggregate amount of R$111,735. The amount was reduced to R$12,895 due to discounts granted under the program, with (i) R$67,953 to be offset using tax credits from income tax losses and social contribution tax loss carryforwards, (ii) R$21,854 paid in cash in October 2017, and (iii) R$9,033 to be paid in cash in January 2018.
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.
44
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(a)
Reconciliation of the effects of income tax and social contribution on profit or loss
|
|
|
|
Consolidated
|
|
Parent company
|
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
|
|
|
Restated
|
|
|
|
Restated
|
Income before IR and CSL
|
|
|
|
5,148,224
|
|
2,669,023
|
|
4,265,569
|
|
2,423,063
|
|
|
|
|
|
|
|
|
|
|
|
IR and CSL at the rate of 34%
|
|
|
|
(1,750,396)
|
|
(907,468)
|
|
(1,450,293)
|
|
(823,841)
|
|
|
|
|
|
|
|
|
|
|
|
Permanent adjustments to the IR and CSL calculation basis
|
|
|
|
|
|
|
|
|
|
|
IR and CSL on equity in results of investees
|
|
|
|
2,201
|
|
7,880
|
|
683,824
|
|
479,924
|
IR and CSL from previous years
|
|
|
|
105,961
|
|
|
|
105,992
|
|
|
Tax loss and negative basis - installment rectification
|
|
|
|
39,092
|
|
|
|
|
|
|
Tax benefits (Sudene and PAT)
|
|
|
|
58,394
|
|
5,302
|
|
58,285
|
|
5,302
|
Difference of rate applicable to each country
|
|
|
|
203,169
|
|
101,044
|
|
|
|
|
Other permanent adjustments
|
|
|
|
4,927
|
|
(10,823)
|
|
24,517
|
|
7,613
|
|
|
|
|
|
|
|
|
|
|
|
IR and CSL on results of operations
|
|
|
|
(1,336,652)
|
|
(804,065)
|
|
(577,675)
|
|
(331,002)
|
|
|
|
|
|
|
|
|
|
|
|
Breakdown of IR and CSL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current IR and CSL
|
|
|
|
(607,441)
|
|
(777,154)
|
|
(193,858)
|
|
(88,360)
|
Deferred IR and CSL
|
|
|
|
(729,211)
|
|
(26,911)
|
|
(383,817)
|
|
(242,642)
|
Total
|
|
|
|
(1,336,652)
|
|
(804,065)
|
|
(577,675)
|
|
(331,002)
|
(b)
Breakdown of deferred income tax and social contribution
(b.i) According to tax collection records
|
|
|
Consolidated
|
|
Parent company
|
Assets
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
|
|
|
|
|
|
|
|
|
|
Tax losses (IR) and negative base (CSL)
|
|
|
1,744,662
|
|
2,420,376
|
|
95,393
|
|
215,413
|
Goodwill amortized
|
|
|
4,093
|
|
4,624
|
|
4,093
|
|
4,623
|
Exchange variations
|
|
|
199,733
|
|
464,947
|
|
189,253
|
|
456,816
|
Temporary adjustments
|
|
|
34,862
|
|
717,868
|
|
775,631
|
|
1,339,681
|
Business combination
|
|
|
290,322
|
|
191,250
|
|
187,631
|
|
89,770
|
|
|
|
2,273,672
|
|
3,799,065
|
|
1,252,001
|
|
2,106,303
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of goodwill based on future profitability
|
|
|
791,849
|
|
767,277
|
|
704,682
|
|
680,111
|
Tax depreciation
|
|
|
941,337
|
|
867,922
|
|
861,353
|
|
792,869
|
Temporary adjustments
|
|
|
290,800
|
|
316,991
|
|
8,188
|
|
11,701
|
Business combination
|
|
|
116,426
|
|
198,381
|
|
1,302
|
|
76,959
|
Additional indexation PP&E
|
|
|
50,522
|
|
118,202
|
|
50,522
|
|
96,700
|
Amortization of fair value adjustments on
the assets from the acquisiton of Braskem Qpar
|
|
|
409,169
|
|
263,808
|
|
409,169
|
|
266,004
|
Other
|
|
|
3,530
|
|
123,892
|
|
3,515
|
|
139,500
|
|
|
|
2,603,633
|
|
2,656,473
|
|
2,038,731
|
|
2,063,844
|
45
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(b.ii) Offset for the purpose of presentation in the balance sheet (consolidated)
|
|
|
|
|
Sep/2017
|
|
|
|
|
|
Headquarters
|
|
IR and CSL
|
|
|
|
|
|
|
(Country)
|
|
Tax calculation
|
|
Compensation
|
|
Balance
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Braskem S.A
|
|
|
|
Brazil
|
|
1,252,001
|
|
(1,252,001)
|
|
|
Braskem Chile
|
|
|
|
Chile
|
|
110
|
|
|
|
110
|
Braskem Argentina
|
|
|
|
Argentina
|
|
3,940
|
|
|
|
3,940
|
Braskem Alemanha
|
|
|
|
Germany
|
|
18,728
|
|
|
|
18,728
|
Braskem Idesa
|
|
|
|
Mexico
|
|
791,598
|
|
|
|
791,598
|
Braskem México Serviços
|
|
|
|
Mexico
|
|
1,671
|
|
|
|
1,671
|
Braskem Petroquímica
|
|
|
|
Brazil
|
|
102,934
|
|
(102,934)
|
|
|
Braskem Petroquímica - business combination effects
|
|
Brazil
|
|
102,690
|
|
|
|
102,690
|
|
|
|
|
|
|
|
2,273,672
|
|
(1,354,935)
|
|
918,737
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Braskem S.A
|
|
|
|
Brazil
|
|
2,038,731
|
|
(1,252,001)
|
|
786,730
|
Braskem America
|
|
|
|
USA
|
|
282,613
|
|
|
|
282,613
|
Braskem Petroquímica
|
|
|
|
Brazil
|
|
167,164
|
|
(102,934)
|
|
64,230
|
Braskem Petroquímica - business combination effects
|
|
Brazil
|
|
115,125
|
|
|
|
115,125
|
|
|
|
|
|
|
2,603,633
|
|
(1,354,935)
|
|
1,248,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine-month period ended September 30, 2017, there were no material events or circumstances that indicate any compromise of the realization of these deferred taxes.
46
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
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
|
|
|
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
Provision for customers rebates
|
|
|
49,378
|
|
41,475
|
|
11,414
|
|
24,167
|
Provision for recovery of environmental damages
|
|
215,248
|
|
254,040
|
|
193,344
|
|
228,618
|
Other
|
|
|
|
|
|
23,872
|
|
23,621
|
|
4,600
|
|
3,798
|
Total
|
|
|
|
|
|
288,498
|
|
319,136
|
|
209,358
|
|
256,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
82,045
|
|
112,891
|
|
39,057
|
|
87,084
|
Non-current liabilities
|
|
|
|
|
206,453
|
|
206,245
|
|
170,301
|
|
169,499
|
Total
|
|
|
|
|
|
288,498
|
|
319,136
|
|
209,358
|
|
256,583
|
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
|
|
|
|
Sep/2017
|
|
Dec/2016
|
|
Sep/2017
|
|
Dec/2016
|
Labor claims
|
|
|
204,056
|
|
207,827
|
|
196,705
|
|
197,452
|
|
|
|
|
|
|
|
|
|
|
Tax claims
|
|
|
|
|
|
|
|
|
|
Normal operations
|
|
|
|
|
|
|
|
|
|
IR and CSL
|
|
|
14,462
|
|
11,462
|
|
11,915
|
|
11,462
|
PIS and COFINS
|
|
|
161,863
|
|
204,516
|
|
161,700
|
|
204,333
|
ICMS
|
|
|
98,281
|
|
39,604
|
|
98,281
|
|
39,604
|
Other tax claims
|
|
|
16,093
|
|
19,586
|
|
16,267
|
|
17,382
|
|
|
|
290,699
|
|
275,168
|
|
288,163
|
|
272,781
|
|
|
|
|
|
|
|
|
|
|
Business Combination
|
|
|
|
|
|
|
|
|
|
IR and CSL
|
|
|
49,211
|
|
45,656
|
|
|
|
|
PIS and COFINS
|
|
|
55,164
|
|
51,052
|
|
55,164
|
|
51,052
|
ICMS - interstate purchases
|
|
|
241,238
|
|
223,071
|
|
241,238
|
|
223,071
|
ICMS - other
|
|
|
17,698
|
|
16,379
|
|
17,698
|
|
16,379
|
|
|
|
363,311
|
|
336,158
|
|
314,100
|
|
290,502
|
|
|
|
|
|
|
|
|
|
|
Corporate claims
|
|
|
142,187
|
|
105,175
|
|
142,187
|
|
105,175
|
|
|
|
|
|
|
|
|
|
|
Civil claims and other
|
|
|
64,144
|
|
60,909
|
|
64,144
|
|
60,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,064,397
|
|
985,237
|
|
1,005,299
|
|
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.
47
|
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
|
|
|
(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 September 30, 2017, the damages claimed in the lawsuit amounted to R$158 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
|
|
|
(i)
|
Income Tax (IR) and Social Contribution (CSL) – Unlimited offsetting
|
|
|
|
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 September 30, 2017, the restated value of the taxes recorded amounted to R$253 million.
|
|
|
|
The Company’s external legal advisors estimate that the administrative proceedings will 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.
|
|
|
(ii)
|
IR and CSL – Expenses from using goodwill
|
|
|
|
In July 2017, the Company received a tax-deficiency notice from the Brazilian Revenue Service (“RFB”) for the deduction of expenses, in the period from 2011 to 2013, arising from the use of goodwill tax offsets arising from the acquisition by OPP Produtos Petroquímicos S/A of shares issued by Companhia Petroquímica do Sul S/A (“COPESUL”), held by OPP Química S/A in 2011.
|
|
|
|
On September 30, 2017, the restated amount of taxes and tax effects from disallowances of income tax losses and social contribution tax loss carryforwards through said tax deficiency notice is R$95 million.
|
|
|
|
The Company’s external legal advisors estimate that the administrative proceeding will be concluded in 2021.
|
|
|
|
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.
|
|
|
(c)
|
Social security – hazardous agents
|
|
|
|
In August 2017, the Company received a deficiency notice from RFB requiring the payment of a premium for labor accident risk to fund the special retirement plan due to the alleged exposure of its workers to hazardous agents in the period from January 2013 to December 2015. The total amount under the deficiency notice, on September 30, 2017, is R$327 million.
|
|
|
48
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
The Company’s external legal advisors estimate that the administrative proceeding should be concluded in 2021.
No judicial deposit or other form of security was accrued 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”) entered into in December 2016 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) was officially ratified as follows:
1.
In Brazil, the Agreement was ratified by the 5
th
Coordination and Review Chamber of the MPF on December 15, 2016, with ratification by the 13
th
Federal Court of Curitiba on June 6, 2017.
2.
The agreement with the U.S. Department of Justice (“DoJ”) was confirmed by a U.S. court ruling on January 26, 2017.
3.
The agreement with the Securities and Exchange Commission (“SEC”) was confirmed on February 28, 2017.
4.
The agreement with Swiss authorities did not require ratification to produce effect.
Of the aggregate amount of the Global Settlement, the Company already has paid approximately R$1.3 billion, as follows:
1.
US$94,894 (R$296,591) to the DoJ, paid on February 8, 2017;
2.
US$65,000 (R$206,460) to the SEC, paid on April 27, 2017;
3.
CHF30,240 (R$104,307) to the Swiss Office of the Attorney General, paid on June 27, 2017;
4.
R$736,445 to the MPF, paid on July 6, 2017.
The outstanding amount, of approximately R$1.7 billion, will be paid as follows:
1.
CHF64,260 to the Swiss Office of the Attorney General in four annual installments of CHF16.065 due on June 30 of each year as from 2018;
2.
R$1.5 billion to the 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 gave as collateral assets from its property, plant and equipment 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 September 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 cited above, in addition to other nonpecuniary obligations imposed on Braskem under the Global Settlement, the Company could suffer a substantial negative impact on its business activities, reputation, financial condition, financial instruments and operating results, or on the liquidity and price of the securities issued by the Company. Furthermore, the negative publicity resulting from the Global Settlement could have a material adverse impact on the Company’s business, including reducing the demand for its products, financial instruments and other effects that currently cannot be estimated or measured. In addition, other authorities with jurisdiction over the Company may seek to impose additional monetary sanctions or fines or commence new investigations against the Company. Finally, as a result of the Global Settlement, the Company may be barred from entering into certain agreements with governmental 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 required external monitorship.
It is not possible to predict the impacts on Braskem of others investigations or 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
After the investigation in 2016 and confirmation of wrongdoings, the Company identified material control deficiencies.
In 2016, it began developing a comprehensive Compliance Program to strengthen its governance with the goal of significantly reducing the possibility of future wrongdoings of the same kind. The Program also contains initiatives that have been implemented throughout 2017.
As of the period ended September 30, 2017, a series of Compliance initiatives are being implemented, including:
(i)
|
Increasing the number of Team Members in the Compliance Department;
|
(ii)
|
Designating and engaging independent monitors jointly with the DoJ and MPF, and beginning of analysis of the Company’s processes and documents by said monitors;
|
(iii)
|
Approving the following documents: Policy on Compliance in Acting Ethically with Integrity and Transparency; Internal Audit Directive; Corporate Credit Card Directive; Procedure for Payment of Commissions to Agents; and Ethics Line Investigation Protocols;
|
(iv)
|
Continuing the training program with a focus on the Compliance System, applicable legislation and raising Team Member awareness;
|
(v)
|
Setting a corporate target related to Compliance for all Leaders at the Company;
|
50
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
(vi)
|
Approving the Directive and Procedure for Relations with Government Officials, which regulates interactions with politicians and executives at state-owned companies;
|
(vii)
|
Formally and effectively participating in working groups: UN Anticorruption and ETHOS Integrity;
|
(viii)
|
Improving the supplier registration and approval process by implementing a third-party risk and integrity assessment;
|
(ix)
|
Developing the Communication Plan for disseminating the Company’s commitment to conducting its Business Ethically with Integrity and Transparency;
|
(x)
|
Approving the Procedure for the Ethics Line, considering the formal process for handling reports of violations and investigation protocols;
|
(xi)
|
Outsourcing of the Whistleblowing Channel and improving the tool for receiving reports of violations;
|
(xii)
|
Mapping of risks and controls and beginning of assessment of the effectiveness of controls for the most relevant corporate processes in Brazil, United States, Mexico, Netherlands and Germany;
|
(xiii)
|
Reviewing the corporate guidance documentation (Policies, Directives, Procedures, etc.);
|
(xiv)
|
Incorporating anti-corruption clauses in agreements with third parties;
|
(xv)
|
Implementing improvements to internal controls with a view to remediating deficiencies identified in the past (especially material deficiencies) and preventing future vulnerabilities;
|
(xvi)
|
Publishing the new version of the Code of Conduct in Brazil, Mexico and United States, and training Team Members;
|
(xvii)
|
Defining the corporate methodology for Risk Management to be adopted in Brazil, United States, Mexico, Netherlands and Germany;
|
(xviii)
|
Conducting Internal Audit works to address points of concern and recommendations for improvements to areas involved in the processes assessed.
|
(d) Class action
On July 1, 2015, a putative class action lawsuit was filed against the Company and certain of its current and former officers in the United States District Court for the Southern District of New York. In the operative complaint in the action, which is titled
In re Braskem Securities Litigation
, 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 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.
Following the decision, the Company and the Lead Plaintiff participated in a mediation which resulted in a proposed settlement of the action. On September 14, 2017, the Company and the Lead Plaintiff signed the proposed settlement agreement (“Proposed Settlement”) and submitted it to the mentioned Court for preliminary approval, which was granted on September 15, 2017. The Proposed Settlement is subject to a number of conditions including final approval by the Court.
Under the terms of the Proposed Settlement, Braskem will pay US$10 million to resolve all claims arising out of or relating to the subject matter of the Class Action of a settlement class consisting of all persons who purchased or otherwise acquired a legal or beneficial ownership interest in Braskem American Depositary Receipts (“ADRs”) between July 15, 2010 and March 11, 2015 inclusive, with the exception of any such claims belonging to purchasers who file valid and timely requests to opt out of the settlement class.
In accordance with CPC 25 and its corresponding accounting standard IAS 37 (Provisions, Contingent Liabilities and Contingent Assets), the Company recorded a provision in the amount of US$10 million
(R$31,680) in the item “Other income (expenses), net”. On October 2, the amount involved in the class action was deposited in court.
51
Braskem S.A.
Notes to the financial statements
at September 30, 2017
All amounts in thousands of reais, unless otherwise stated
Braskem has made no admission of any wrongdoing or liability as part of the Proposed Settlement, and entered into the Proposed Settlement solely to avoid the risk, uncertainty, and expense of further litigation.”
The Court has scheduled a Final Approval Hearing for February 21, 2018 to determine whether the Proposed Settlement should be approved.
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.
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)
|
|
|
|
|
|
55,858,224
|
|
16.19
|
|
|
|
|
|
55,858,224
|
|
7.01
|
Other
|
|
|
12,907,077
|
|
2.86
|
|
132,973,403
|
|
38.54
|
|
578,330
|
|
100.00
|
|
146,458,810
|
|
18.37
|
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.
52
Braskem S.A.
Notes to the financial statements
at September 30, 2016
All amounts in thousands of reais, unless otherwise stated
(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
|
|
(30,951)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30,951)
|
|
|
|
(30,951)
|
|
Income tax and social contribution
|
|
10,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,524
|
|
|
|
10,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed cost of jointly-controlled investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization
|
|
|
|
(1,096)
|
|
|
|
|
|
|
|
|
|
|
|
(1,096)
|
|
|
|
(1,096)
|
|
Income tax and social contribution
|
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
372
|
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign sales hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
|
|
|
|
|
|
|
|
3,157,453
|
|
|
|
|
|
|
|
3,157,453
|
|
(350,064)
|
|
2,807,389
|
|
Transfer to result
|
|
|
|
|
|
|
|
1,061,661
|
|
|
|
|
|
|
|
1,061,661
|
|
8,842
|
|
1,070,503
|
|
Income tax and social contribution
|
|
|
|
|
|
|
|
(1,474,894)
|
|
|
|
|
|
|
|
(1,474,894)
|
|
102,550
|
|
(1,372,344)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of Cash flow hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
|
|
|
|
|
|
|
|
|
|
220,324
|
|
|
|
|
|
220,324
|
|
(30,175)
|
|
190,149
|
|
Transfer to result
|
|
|
|
|
|
|
|
|
|
(15,421)
|
|
|
|
|
|
(15,421)
|
|
(8,823)
|
|
(24,244)
|
|
Income tax and social contribution
|
|
|
|
|
|
|
|
|
|
(74,347)
|
|
|
|
|
|
(74,347)
|
|
11,699
|
|
(62,648)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of cash flow hedge from jointly-controlled
|
|
|
|
|
|
|
|
|
|
(6,272)
|
|
|
|
|
|
(6,272)
|
|
|
|
(6,272)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
(85,770)
|
|
|
|
(85,770)
|
|
221,402
|
|
135,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On September 30, 2016
|
|
197,168
|
|
16,585
|
|
(39,232)
|
|
(6,922,753)
|
|
(561,112)
|
|
1,019,621
|
|
(9,404)
|
|
(6,299,127)
|
|
(521,277)
|
|
(6,820,404)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
(30,557)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30,557)
|
|
|
|
(30,557)
|
|
Income tax and social contribution
|
|
10,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,390
|
|
|
|
10,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed cost of jointly-controlled investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realization
|
|
|
|
(1,095)
|
|
|
|
|
|
|
|
|
|
|
|
(1,095)
|
|
|
|
(1,095)
|
|
Income tax and social contribution
|
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
372
|
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign sales hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
|
|
|
|
|
|
|
|
1,392,434
|
|
|
|
|
|
|
|
1,392,434
|
|
312,044
|
|
1,704,478
|
|
Transfer to result
|
|
|
|
|
|
|
|
858,945
|
|
|
|
|
|
|
|
858,945
|
|
28,207
|
|
887,152
|
|
Income tax and social contribution
|
|
|
|
|
|
|
|
(724,638)
|
|
|
|
|
|
|
|
(724,638)
|
|
(102,075)
|
|
(826,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of Cash flow hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
|
|
|
|
|
|
|
|
|
|
62,796
|
|
|
|
|
|
62,796
|
|
480
|
|
63,276
|
|
Transfer to result
|
|
|
|
|
|
|
|
|
|
55,687
|
|
|
|
|
|
55,687
|
|
12,584
|
|
68,271
|
|
Income tax and social contribution
|
|
|
|
|
|
|
|
|
|
(38,717)
|
|
|
|
|
|
(38,717)
|
|
(3,920)
|
|
(42,637)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of cash flow hedge from jointly-controlled
|
|
|
|
|
|
|
|
|
|
915
|
|
|
|
|
|
915
|
|
|
|
915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
(312,806)
|
|
|
|
(312,806)
|
|
(81,136)
|
|
(393,942)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On September 30, 2017
|
|
170,192
|
|
15,621
|
|
(43,351)
|
|
(5,578,636)
|
|
(458,837)
|
|
856,282
|
|
(9,404)
|
|
(5,048,133)
|
|
(382,417)
|
|
(5,430,550)
|
(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.
|
53
Braskem S.A.
Notes to the financial statements
at September 30, 2016
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
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
Restated
|
Profit for the period attributed to Company's shareholders
|
|
|
|
of continued operations
|
3,687,894
|
|
2,092,061
|
|
|
|
|
Distribution of dividends attributable to priority:
|
|
|
|
Preferred shares class "A"
|
208,416
|
|
208,416
|
Preferred shares class "B"
|
351
|
|
351
|
|
208,767
|
|
208,767
|
|
|
|
|
Distribution of 6% of unit value of common shares
|
273,827
|
|
273,827
|
|
|
|
|
Distribution of plus income, by class:
|
|
|
|
Common shares
|
1,820,031
|
|
913,886
|
Preferred shares class "A"
|
1,385,270
|
|
695,581
|
|
3,205,301
|
|
1,609,467
|
|
|
|
|
Reconciliation of income available for distribution, by class (numerator):
|
|
|
|
Common shares
|
2,093,858
|
|
1,187,713
|
Preferred shares class "A"
|
1,593,686
|
|
903,997
|
Preferred shares class "B"
|
351
|
|
351
|
|
3,687,895
|
|
2,092,061
|
|
|
|
|
Weighted average number of shares, by class (denominator):
|
|
|
|
Common shares
|
451,668,652
|
|
451,668,652
|
Preferred shares class "A"
|
343,775,864
|
|
343,775,864
|
Preferred shares class "B"
|
578,330
|
|
578,330
|
|
796,022,846
|
|
796,022,846
|
|
|
|
|
Profit per share (in R$)
|
|
|
|
Common shares
|
4.6358
|
|
2.6296
|
Preferred shares class "A"
|
4.6358
|
|
2.6296
|
Preferred shares class "B"
|
0.6069
|
|
0.6069
|
54
Braskem S.A.
Notes to the financial statements
at September 30, 2016
All amounts in thousands of reais, unless otherwise stated
22.
Net sales revenues
|
|
|
|
|
Consolidated
|
|
Parent company
|
|
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
Sales revenue
|
|
|
|
|
|
Restated
|
|
|
|
Restated
|
|
Domestic market
|
|
|
|
25,724,368
|
|
24,269,820
|
|
26,943,600
|
|
25,303,281
|
|
Foreign market
|
|
|
|
17,498,562
|
|
17,096,224
|
|
6,916,643
|
|
7,189,440
|
|
|
|
|
|
43,222,930
|
|
41,366,044
|
|
33,860,243
|
|
32,492,721
|
Sales and services deductions
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market
|
|
|
|
(6,344,014)
|
|
(5,399,082)
|
|
(6,513,176)
|
|
(5,565,475)
|
|
Foreign market
|
|
|
|
(24,754)
|
|
(20,462)
|
|
|
|
|
Costumers rebates
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market
|
|
|
|
(9,115)
|
|
(33,434)
|
|
(8,480)
|
|
(33,434)
|
|
Foreign market
|
|
|
|
(43,137)
|
|
(40,899)
|
|
(176)
|
|
(1,043)
|
Sales returns
|
|
|
|
|
|
|
|
|
|
|
|
Domestic market
|
|
|
|
(95,832)
|
|
(198,623)
|
|
(95,504)
|
|
(151,314)
|
|
Foreign market
|
|
|
|
(73,872)
|
|
(55,671)
|
|
(4,027)
|
|
(15,158)
|
|
|
|
|
|
(6,590,724)
|
|
(5,748,171)
|
|
(6,621,363)
|
|
(5,766,424)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales and services revenue
|
|
|
36,632,206
|
|
35,617,873
|
|
27,238,880
|
|
26,726,297
|
23.
Other net income (expenses)
|
|
Note
|
|
|
|
Consolidated
|
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
|
|
|
Restated
|
Participation of members in profits and results
|
(i)
|
|
(286,535)
|
|
(245,352)
|
Expense and depreciation with hibernate plants
|
|
|
(161,171)
|
|
(160,555)
|
Expenses from fixed assets
|
|
|
(144,041)
|
|
(31,777)
|
Capital gain - sale of Quantiq
|
3
|
|
276,817
|
|
|
Provision of legal and labor lawsuits
|
|
|
(60,976)
|
|
(61,622)
|
Other
|
|
|
73,957
|
|
(56,974)
|
|
|
|
|
(301,949)
|
|
(556,280)
|
(i)
In the period ended September 30, 2016, the amounts related to this item were reclassified from “costs of goods sold” (R$107,318), “selling and distribution expenses” (R$3,031) and “general and administrative expenses” (R$133,004) (Note 2.5(b)).
55
Braskem S.A.
Notes to the financial statements
at September 30, 2016
All amounts in thousands of reais, unless otherwise stated
24.
Financial results
|
|
|
|
|
|
Consolidated
|
|
Parent company
|
|
|
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
Financial income
|
|
|
|
|
|
|
Restated
|
|
|
|
Restated
|
|
Interest income
|
|
|
|
|
410,695
|
|
534,836
|
|
381,142
|
|
486,719
|
|
Other
|
|
|
|
|
61,770
|
|
31,108
|
|
43,200
|
|
28,257
|
|
|
|
|
|
|
472,465
|
|
565,944
|
|
424,342
|
|
514,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
|
|
|
(1,700,141)
|
|
(1,804,390)
|
|
(1,092,752)
|
|
(1,487,360)
|
|
Monetary variations on fiscal debts
|
|
|
|
(137,479)
|
|
(88,565)
|
|
(134,519)
|
|
(82,391)
|
|
Discounts granted
|
|
|
|
|
(96,458)
|
|
(85,672)
|
|
(94,535)
|
|
(73,267)
|
|
Loans transaction costs - amortization
|
|
|
|
(38,884)
|
|
(42,947)
|
|
(3,586)
|
|
(3,927)
|
|
Adjustment to present value - appropriation
|
|
|
|
(235,124)
|
|
(403,327)
|
|
(181,589)
|
|
(372,669)
|
|
Other
|
|
|
|
|
(256,403)
|
|
(146,402)
|
|
(125,170)
|
|
(76,144)
|
|
|
|
|
|
|
(2,464,489)
|
|
(2,571,303)
|
|
(1,632,151)
|
|
(2,095,758)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate variations, net
|
|
|
|
|
|
|
|
|
|
|
|
On financial assets
|
|
|
|
|
(146,618)
|
|
(994,352)
|
|
49,223
|
|
(1,573,414)
|
|
On financial liabilities
|
|
|
|
135,529
|
|
(1,522,123)
|
|
(679,846)
|
|
(208,750)
|
|
|
|
|
|
|
(11,089)
|
|
(2,516,475)
|
|
(630,623)
|
|
(1,782,164)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
(2,003,113)
|
|
(4,521,834)
|
|
(1,838,432)
|
|
(3,362,946)
|
25.
Expenses by nature and function
|
|
|
|
|
Consolidated
|
|
Parent company
|
|
|
|
|
|
Sep/2017
|
|
Sep/2016
|
|
Sep/2017
|
|
Sep/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification by nature:
|
|
|
|
|
|
|
|
|
|
|
Raw materials other inputs
|
|
|
(21,890,516)
|
|
(20,841,220)
|
|
(17,831,129)
|
|
(16,732,613)
|
|
Personnel expenses
|
|
|
(1,631,679)
|
|
(1,726,222)
|
|
(1,266,750)
|
|
(1,325,910)
|
|
Outsourced services
|
|
|
(1,523,736)
|
|
(1,517,291)
|
|
(1,091,296)
|
|
(1,064,430)
|
|
Depreciation, amortization and depletion
|
|
|
(2,169,141)
|
|
(1,951,011)
|
|
(1,405,483)
|
|
(1,552,065)
|
|
Freights
|
|
|
(1,530,348)
|
|
(1,473,531)
|
|
(994,386)
|
|
(1,071,261)
|
|
Other expenses, net
|
|
|
(764,774)
|
|
(940,918)
|
|
(528,664)
|
|
(605,550)
|
|
Total
|
|
|
(29,510,194)
|
|
(28,450,193)
|
|
(23,117,708)
|
|
(22,351,829)
|
|
|
|
|
|
|
|
|
|
|
|
|
Classification by function:
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
(27,017,279)
|
|
(25,839,349)
|
|
(21,434,513)
|
|
(20,662,676)
|
|
Selling and distribution
|
|
|
(1,085,465)
|
|
(1,012,353)
|
|
(686,805)
|
|
(701,811)
|
|
General and administrative
|
|
|
(994,517)
|
|
(922,364)
|
|
(675,912)
|
|
(535,157)
|
|
Research and development
|
|
|
(110,984)
|
|
(119,847)
|
|
(75,374)
|
|
(75,983)
|
|
Other income (expenses), net
|
|
|
|
(301,949)
|
|
(556,280)
|
|
(245,104)
|
|
(376,202)
|
|
Total
|
|
|
(29,510,194)
|
|
(28,450,193)
|
|
(23,117,708)
|
|
(22,351,829)
|
56
Braskem S.A.
Notes to the financial statements
at September 30, 2016
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep/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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals
|
(i)
|
18,473,383
|
|
(15,024,902)
|
|
3,448,481
|
|
(583,205)
|
|
|
|
(149,531)
|
|
2,715,745
|
|
Polyolefins
|
|
14,666,021
|
|
(11,560,642)
|
|
3,105,379
|
|
(975,528)
|
|
|
|
(126,397)
|
|
2,003,454
|
|
Vinyls
|
|
2,256,963
|
|
(1,935,520)
|
|
321,443
|
|
(112,426)
|
|
|
|
(69,463)
|
|
139,554
|
|
USA and Europe
|
|
7,183,930
|
|
(5,421,116)
|
|
1,762,814
|
|
(422,040)
|
|
|
|
(19,836)
|
|
1,320,938
|
|
Mexico
|
|
2,664,348
|
|
(1,548,851)
|
|
1,115,497
|
|
(211,772)
|
|
|
|
(17,821)
|
|
885,904
|
Total
|
|
45,244,645
|
|
(35,491,031)
|
|
9,753,614
|
|
(2,304,971)
|
|
|
|
(383,048)
|
|
7,065,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other segments
|
|
11,816
|
|
(13,463)
|
|
(1,647)
|
|
(129)
|
|
|
|
(2,426)
|
|
(4,202)
|
Corporate unit
|
|
|
|
|
|
|
|
17,676
|
|
29,325
|
|
83,525
|
(ii)
|
130,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Braskem consolidated before
eliminations and reclassifications
|
|
45,256,461
|
|
(35,504,494)
|
|
9,751,967
|
|
(2,287,424)
|
|
29,325
|
|
(301,949)
|
|
7,191,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations and reclassifications
|
|
(8,624,255)
|
|
8,487,215
|
|
(137,040)
|
|
96,458
|
|
|
|
|
|
(40,582)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
36,632,206
|
|
(27,017,279)
|
|
9,614,927
|
|
(2,190,966)
|
|
29,325
|
|
(301,949)
|
|
7,151,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep/2016
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
|
|
Chemicals
|
(i)
|
18,514,922
|
|
(14,899,944)
|
|
3,614,978
|
|
(501,273)
|
|
|
|
(168,369)
|
|
2,945,336
|
|
Polyolefins
|
|
15,577,095
|
|
(12,257,118)
|
|
3,319,977
|
|
(942,543)
|
|
|
|
(121,345)
|
|
2,256,089
|
|
Vinyls
|
|
2,222,487
|
|
(2,085,354)
|
|
137,133
|
|
(169,591)
|
|
|
|
(21,331)
|
|
(53,789)
|
|
USA and Europe
|
|
6,898,923
|
|
(4,526,507)
|
|
2,372,416
|
|
(350,185)
|
|
|
|
(46,292)
|
|
1,975,939
|
|
Mexico
|
|
872,660
|
|
(587,116)
|
|
285,544
|
|
(168,308)
|
|
|
|
(105,451)
|
|
11,785
|
Total
|
|
44,086,087
|
|
(34,356,039)
|
|
9,730,048
|
|
(2,131,900)
|
|
|
|
(462,788)
|
|
7,135,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other segments
|
|
9,784
|
|
(12,001)
|
|
(2,217)
|
|
(1,876)
|
|
|
|
(21,318)
|
|
(25,411)
|
Corporate unit
|
|
|
|
|
|
|
|
(6,460)
|
|
23,177
|
|
(72,174)
|
|
(55,457)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Braskem consolidated before
eliminations and reclassifications
|
|
44,095,871
|
|
(34,368,040)
|
|
9,727,831
|
|
(2,140,236)
|
|
23,177
|
|
(556,280)
|
|
7,054,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eliminations and reclassifications
|
|
(8,477,998)
|
|
8,528,691
|
|
50,693
|
|
85,672
|
|
|
|
|
|
136,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
35,617,873
|
|
(25,839,349)
|
|
9,778,524
|
|
(2,054,564)
|
|
23,177
|
|
(556,280)
|
|
7,190,857
|
(i)
The Basic Petrochemical segment had its nomenclature changed for Chemicals, with the objective of adopting a language more focused on the market of this segment.
(ii)
Includes gain from sale of the former “chemical distribution” segment in the amount of R$276,816 (Note 3).
57
Braskem S.A.
Notes to the financial statements
at September 30, 2016
All amounts in thousands of reais, unless otherwise stated
27.
Subsequent events
(a)
Cetrel
On October 2, 2017, the acquisition of 1,269,290 shares issued by Cetrel, representing 63.66% of its total and voting capital, through the payment of R$610 million, was concluded, on which date the control of said company was transferred to Braskem. The acquisition is classified as a business combination, in accordance with CPC 15 and its corresponding standard IFRS 3 (Business Combinations).
On October 16, 2017, during an extraordinary meeting of the Board of Directors of Cetrel, Braskem elected the new executive board and, on October 25, 2017, the extraordinary shareholders meeting of Cetrel elected the new members of the Board of Directors and Audit Board.
The following table summarizes the consideration paid to Odebrecht Utilities on the acquisition date and the best estimate of the fair values of the assets acquired and liabilities assumed:
|
|
|
|
|
September/2017
|
|
|
|
|
|
|
Consideration
|
|
|
|
|
|
Acquisition of 1.269.290 shares (63,66% of the capital)
|
|
|
|
610,000
|
(A) Total consideration transferred
|
|
|
|
610,000
|
|
|
|
|
|
|
Amounts of identifiable assets acquired and liabilities assumed
|
|
|
|
|
|
|
|
|
|
|
% of participation
|
|
100.00%
|
|
63.66%
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Financial investments
|
|
24,315
|
|
15,479
|
|
Trade accounts receivable
|
|
55,055
|
|
35,048
|
|
Inventories
|
|
8,152
|
|
5,190
|
|
Other receivables
|
|
15,376
|
|
9,788
|
Non-current assets
|
|
|
|
|
|
Property, plant, equipment and intangible assets
|
|
1,147,647
|
|
730,592
|
|
Other receivables
|
|
108,980
|
|
69,377
|
Total identifiable assets acquired
|
|
1,359,525
|
|
865,474
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Borrowings
|
|
33,766
|
|
21,495
|
|
Other liabilities
|
|
35,444
|
|
22,564
|
Non-current liabilities
|
|
|
|
|
|
Borrowings
|
|
302,680
|
|
192,686
|
|
Other liabilities
|
|
68,147
|
|
43,382
|
Total liabilities assumed
|
|
440,037
|
|
280,128
|
|
|
|
|
|
|
(B) Total identifiable assets acquired (-) liabilities assumed
|
|
919,488
|
|
585,346
|
|
|
|
|
|
|
Business combination result - (A) - (B)
|
|
|
|
24,654
|
The final effects from the business combination will be verified through an expert valuation report of the identifiable assets acquired and liabilities assumed at fair value, to be prepared by an expert firm.
58
Braskem S.A.
Notes to the financial statements
at September 30, 2016
All amounts in thousands of reais, unless otherwise stated
(b)
Bonds
On October 4, 2017, Braskem issued US$1,750 million in Bonds (R$5,480 million), comprising US$500 million (R$1,566 million) due in January 2023 with interest of 3.5% p.a. and US$1,250 million (R$3,914 million) due in January 2028 with interest of 4.5% p.a. The issue due in 2023 was priced at 99.058% of face value, which represents a yield of 3.7% p.a., and the issue due in 2028 was priced at 98.995% of face value, which represents a yield of 4.625% p.a.
The proceeds from the issues are being used to prepay other liabilities, to fund investments and for general purposes of the Company.
(c)
Prepayment of borrowings
With the proceeds from the issues of October 4, 2017, informed in item (b) above, Braskem prepaid borrowings and derivative operations as follows:
Borrowings
|
|
|
Annual financial charges (%)
|
|
Prepayments
|
Foreign currency
|
|
|
|
|
|
Advances on exchange contracts
|
|
US dollar exchange variation + 3.52%
|
|
638,193
|
|
Export prepayment
|
|
Note 13 (c)
|
|
215,145
|
|
Working capital
|
|
US dollar exchange variation + 1.74% above Libor
|
|
1,040,405
|
|
|
|
|
|
1,893,743
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
917,002
|
|
Non-current liabilities
|
|
|
|
976,741
|
|
Total
|
|
|
|
1,893,743
|
|
|
|
|
|
|
Local currency
|
|
|
|
|
|
Export credit notes
|
|
105.00 e 112.50 of CDI
|
|
995,000
|
|
Other
|
|
CDI + 0.04
|
|
11,305
|
|
|
|
|
|
1,006,305
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
1,006,305
|
|
Total
|
|
|
|
1,006,305
|
|
|
|
|
|
|
Foreign currency and local currency
|
|
|
|
|
|
Current liabilities
|
|
|
|
917,002
|
|
Non-current liabilities
|
|
|
|
1,983,046
|
|
Total
|
|
|
|
2,900,048
|
Derivative operations – swaps related to export credit notes (NCE)
Identification
|
|
|
|
Hedge
|
|
Maturity
|
|
|
|
Nominal value
|
|
Financial charges for year
|
|
|
Prepayments
|
Swap NCE I to III
|
|
400,000
|
|
Exchange variation + 6.15%
|
|
Aug-2019
|
|
414,716
|
Swap NCE IV to VII
|
|
450,000
|
|
Exchange variation + 4.93% to 7.90%
|
|
Apr-2019
|
|
395,451
|
Total
|
|
850,000
|
|
|
|
|
|
810,167
|
|
|
|
|
|
|
|
|
|
Derivatives operations
|
|
|
|
|
|
|
|
|
Non-Current liabilities
|
|
|
|
|
|
|
|
810,167
|
Total
|
|
|
|
|
|
810,167
|
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: November 9, 2017
|
BRASKEM S.A.
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Pedro van Langendonck Teixeira de Freitas
|
|
|
|
|
|
Name:
|
Pedro van Langendonck Teixeira de Freitas
|
|
|
Title:
|
Chief Financial Officer
|
FORWARD-LOOKING STATEMENTS
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.