Edgar Filing: BRASKEM SA

bakitr2q17-6k.htm - Generated by SEC Publisher for SEC Filing

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 August, 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

June 30, 2017

and Independent Auditors’ Report Review

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 June 30, 2017, which comprises the balance sheet as of June 30, 2017, the statements of profit or loss and comprehensive income for the three and six-month period then ended, changes in equity and cash flows for the six-month period then ended, and notes to the interim financial information.

Management is responsible for the preparation and presentation of this individual interim financial information in accordance with CPC 21(R1) Technical Pronouncement - Interim Financial Reporting and the consolidated interim financial information in accordance with CPC 21(R1) and international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of this quarterly information in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission, applicable to the preparation of interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international review standards applicable to interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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.

Emphasis of a matter

We call your attention to note 19.3, which says about the ratification of the Leniency Agreement (the “Agreement”) with the Federal Prosecution Office, the Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) of the United States of America, and with the General Prosecution Office of Switzerland, in the approximate amount of R$3.1 billion, and discloses information on progress of class action brought in the United States of America. Except for the value of the Agreement, as well as other non-monetary penalties enforced, the Company is not able, for the moment, to reliably foresee or measure the extent of financial and non-financial impacts on the Company and, accordingly, is not able to record possible additional losses that confirmation of accusations, possible lawsuits filed by other authorities and/or third-parties, and parallel investigations could cause to the Company, as well as resources required to remedy such occurrences, including possible effects deriving from the outcome of above-mentioned class action. Our opinion is not qualified in relation to this matter.

Other matters

Statements of value added

We also reviewed the individual and consolidated statements of value added for the six-month period ended June 30, 2017, prepared under the responsibility of the Company's management, whose presentation on the interim financial information is required under the standards issued by CVM - Brazilian Securities and Exchange Commission applicable to the preparation of Interim Financial Information and considered as additional information by IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added are not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.

Restatement of the corresponding values

According to mencioned in the note 2.5, as a result of the change in accounting policy in the presentation of interest paid in the Cash Flow and in the classification of the bonus provision, the interim financial information related to the statements of profit or loss for the three and six-month period and cash flows for the six-month period ended June 30, 2016, presented for comparison purposes, were adjusted and has been restated, as required in the CPC 23 - Accounting Policies, Changes in Accounting Estimates and Errors and CPC 26 (R1) - Presentation of Financial Statements. Our conclusion is not qualified in respect of this matter.

São Paulo, August 15, 2017

KPMG Auditores Independentes

CRC 2SP014428/O-6

Original report in Portuguese signed by

Anselmo Neves Macedo

Accountant CRC 1SP160482/O-6

Braskem S.A.

Balance sheet

at June 30, 2017

All amounts in thousands of reais


			Consolidated		Parent company
Assets		Note	Jun/2017	Dec/2016	Jun/2017	Dec/2016

Current assets
	Cash and cash equivalents	4	5,711,450	6,701,864	2,715,732	3,561,431
	Financial investments	5	2,677,819	1,190,483	2,231,608	741,086
	Trade accounts receivable	6	2,460,514	1,634,137	1,419,285	952,689
	Inventories	7	5,907,679	5,238,014	3,978,654	3,795,899
	Taxes recoverable	9	1,184,187	826,015	604,666	543,275
	Dividends and interest on capital	8	20,729	14,986	37,165	31,421
	Prepaid expenses	0	204,444	101,747	132,234	83,252
	Related parties	8(b)	-	-	16,260	172,344
	Derivatives operations	15.2.1	-	8,387	-	8,387
	Other receivables		311,058	180,915	247,029	128,231

			18,477,880	15,896,548	11,382,633	10,018,015

Non-current assets held for sale		3	-	359,704	-	263,912
		0
		0	18,477,880	16,256,252	11,382,633	10,281,927
Non-current assets		0
	Trade accounts receivable	6	62,697	70,236	3,429,639	2,794,889
	Advances to suppliers	7	53,998	61,533	53,998	61,533
	Taxes recoverable	9	1,148,419	1,088,353	1,050,215	998,039
	Deferred income tax and social contribution	17(b.ii)	1,026,328	1,653,115	-	42,459
	Judicial deposits	0	243,349	233,320	236,788	226,894
	Related parties	8(b)	-	-	14,977	14,472
	Insurance claims	0	39,650	50,653	39,650	50,653
	Derivatives operations	15.2.1	14,820	29,308	-	-
	Other receivables	0	174,117	140,971	143,265	129,704
	Investments	10(b)	96,880	92,313	6,318,007	4,132,529
	Property, plant and equipment	11	30,448,082	29,336,710	15,598,223	15,963,127
	Intangible assets	12	2,785,911	2,809,087	2,505,577	2,521,243
		0
		0	36,094,251	35,565,599	29,390,339	26,935,542
		0
Total assets		0	54,572,131	51,821,851	40,772,972	37,217,469

The Management notes are an integral part of the financial statements.

Braskem S.A.

Balance sheet

at June 30, 2017

All amounts in thousands of reais

Continued

			Consolidated		Parent company
Liabilities and shareholders' equity		Note	Jun/2017	Dec/2016	Jun/2017	Dec/2016

Current liabilities
	Trade payables		5,257,693	6,545,136	2,048,807	2,056,661
	Borrowings	13	4,216,322	2,594,463	3,369,568	2,117,409
	Braskem Idesa borrowings	14	10,195,823	10,437,791	-	-
	Derivatives operations	15.2.1	41,350	29,042	22,905	-
	Payroll and related charges	0	476,967	562,455	375,579	431,688
	Taxes payable	16	947,680	624,080	467,135	424,088
	Dividends	0	2,560	3,083	2,560	3,083
	Advances from customers	0	219,267	203,216	34,117	28,200
	Leniency agreement	19.3	985,630	1,354,492	930,177	948,286
	Sundry provisions	18	78,875	112,891	48,896	87,084
	Accounts payable to related parties	8(b)	-	-	963,200	956,609
	Other payables	0	212,317	476,262	62,543	295,233
		0
		0	22,634,484	22,942,911	8,325,487	7,348,341
		0
Non-current liabilities held for sale		3	-	95,396	-	-
		0
		0	22,634,484	23,038,307	8,325,487	7,348,341
Non-current liabilities		0
	Trade payables	0	272,911	201,686	10,492,003	8,832,553
	Borrowings	13	19,385,947	20,736,604	5,671,962	6,463,032
	Derivatives operations	15.2.1	840,485	861,302	840,485	861,302
	Taxes payable	16	40,424	24,097	39,672	23,830
	Accounts payable to related parties	8(b)	-	-	5,787,061	8,234,053
	Loan to non-controlling shareholders of Braskem Idesa	0	1,679,492	1,620,519	-	-
	Deferred income tax and social contribution	17(b.ii)	1,025,736	510,523	540,090	-
	Post-employment benefits		171,318	162,136	71,899	71,899
	Provision for losses on subsidiaries		-	-	99,509	92,365
	Advances from customers		75,186	162,955	-	-
	Contingencies	19	1,015,882	985,237	955,926	926,819
	Leniency agreement	19.3	1,328,714	1,498,738	1,278,087	1,400,224
	Sundry provisions	18	207,100	206,245	170,035	169,499
	Other payables		154,437	92,792	6,001	6,070

			26,197,632	27,062,834	25,952,730	27,081,646

Shareholders' equity		20
	Capital		8,043,222	8,043,222	8,043,222	8,043,222
	Capital reserve		232,430	232,430	232,430	232,430
	Revenue reserves		834,616	834,616	834,616	834,616
	Other comprehensive income		(5,526,437)	(6,321,859)	(5,526,437)	(6,321,859)
	Treasury shares		(49,819)	(49,819)	(927)	(927)
	Retained earnings		2,911,851	-	2,911,851	-

	Total attributable to the Company's shareholders		6,445,863	2,738,590	6,494,755	2,787,482

	Non-controlling interest in Braskem Idesa		(705,848)	(1,017,880)	-	-

			5,740,015	1,720,710	6,494,755	2,787,482

Total liabilities and shareholders' equity			54,572,131	51,821,851	40,772,972	37,217,469

The Management notes are an integral part of the financial statements.

Braskem S.A.

Balance sheet

at June 30, 2017

All amounts in thousands of reais

			Consolidated
Continued operations		Note	2Q2017	YTD2017	2Q2016	YTD2016
		0			Restated	Restated
Net sales revenue		22	11,870,430	24,470,158	11,721,937	23,636,532
	Cost of products sold	0	(8,979,357)	(17,890,990)	(8,460,914)	(17,074,199)
		0
		0	2,891,073	6,579,168	3,261,023	6,562,333
		0
Income (expenses)		0
	Selling and distribution	0	(358,284)	(704,586)	(341,888)	(648,644)
	General and administrative	0	(311,821)	(622,384)	(301,368)	(586,624)
	Research and development	0	(38,483)	(72,145)	(40,034)	(82,628)
	Results from equity investments	10(c)	10,642	22,851	11,690	13,377
	Other income (expenses), net	23	118,316	16,807	(225,882)	(363,505)
		0
		0	2,311,443	5,219,711	2,363,541	4,894,309
		0
Financial results		24
	Financial expenses	0	(820,578)	(1,656,087)	(901,777)	(1,692,159)
	Financial income	0	151,550	316,530	210,261	375,755
	Exchange rate variations, net	0	(8,431)	276,604	(1,202,296)	(2,062,692)
		0
		0	(677,459)	(1,062,953)	(1,893,812)	(3,379,096)
		0
Profit before income tax and social contribution		0	1,633,984	4,156,758	469,729	1,515,213

	Current and deferred income tax and social contribution	17(a)	(491,563)	(1,108,963)	(202,407)	(463,225)
		0
Profit for the period of continued operations		0	1,142,421	3,047,795	267,322	1,051,988
		3
Discontinued operations results		0
	Profit from discontinued operations	0	-	13,499	10,897	27,200
	Current and deferred income tax and social contribution	0	-	(4,623)	(3,512)	(8,927)
		0	-	8,876	7,385	18,273
		0
Profit for the period		0	1,142,421	3,056,671	274,707	1,070,261
		0
Attributable to:		0
	Company's shareholders	0	1,089,848	2,897,400	406,980	1,230,371
	Non-controlling interest in Braskem Idesa	0	52,573	159,271	(132,273)	(160,110)
		0
Profit for the period		0	1,142,421	3,056,671	274,707	1,070,261

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of operations and statement of comprehensive income

at June 30, 2017

All amounts in thousands of reais

Continued

			Parent company
Continued operations		Note	2Q2017	YTD2017	2Q2016	YTD2016
		0			Restated	Restated
Net sales revenue		22	9,113,983	18,321,499	8,744,353	17,765,004
	Cost of products sold	0	(7,134,868)	(14,318,463)	(6,614,955)	(13,763,940)
		0
		0	1,979,115	4,003,036	2,129,398	4,001,064
		0
Income (expenses)		0
	Selling and distribution	0	(224,638)	(449,130)	(228,931)	(451,556)
	General and administrative	0	(228,073)	(427,875)	(179,014)	(348,932)
	Research and development	0	(26,670)	(49,961)	(27,653)	(50,718)
	Results from equity investments	10(c)	404,481	1,573,361	274,856	1,066,730
	Other income (expenses), net	0	137,122	43,988	(145,944)	(255,641)
		0
		0	2,041,337	4,693,419	1,822,712	3,960,947
		0
Financial results		24
	Financial expenses	0	(548,302)	(1,107,714)	(671,932)	(1,409,239)
	Financial income	0	136,930	288,022	174,638	318,701
	Exchange rate variations, net	0	(198,128)	(411,403)	(764,560)	(1,586,195)
		0
		0	(609,500)	(1,231,095)	(1,261,854)	(2,676,733)
		0
Profit before income tax and social contribution		0	1,431,837	3,462,324	560,858	1,284,214

	Current and deferred income tax and social contribution	17(a)	(341,989)	(573,800)	(161,263)	(74,334)
		0
Profit for the period of continued operations		0	1,089,848	2,888,524	399,595	1,209,880

Discontinued operations results		3	-	8,876	7,385	20,491
		0
Profit for the period		0	1,089,848	2,897,400	406,980	1,230,371

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of operations and statement of comprehensive income

at June 30, 2017

All amounts in thousands of reais, except earnings or loss per share

Continued

			Consolidated
		Note	2Q2017	YTD2017	2Q2016	YTD2016
					Restated	Restated
Profit for the period			1,142,421	3,056,671	274,707	1,070,261

Other comprehensive income or loss:
Items that will be reclassified subsequently to profit or loss
	Fair value of cash flow hedge		(36,411)	51,167	151,913	179,831
	Income tax and social contribution		12,821	(15,650)	(54,348)	(68,307)
	Fair value of cash flow hedge from jointly-controlled		3,168	3,762	(2,761)	(12,765)
			(20,422)	39,279	94,804	98,759

	Exchange variation of foreign sales hedge	15.3(a.i)	(711,317)	(230,507)	2,213,130	4,433,659
	Sales Hedge - transfer to profit or loss	15.3(a.i)	249,722	498,962	345,443	767,243
	Income tax and social contribution on exchange variation		156,942	(91,275)	(869,915)	(1,768,307)
	Exchange variation of foreign sales hedge - Braskem Idesa	15.3(a.ii)	496,071	1,403,603	(914,249)	(1,093,972)
	Sales Hedge - transfer to profit or loss - Braskem Idesa	15.3(a.ii)	42,992	73,910	14,297	14,297
	Income tax on exchange variation - Braskem Idesa		(161,719)	(443,254)	274,275	328,192
			72,691	1,211,439	1,062,981	2,681,112

	Foreign subsidiaries currency translation adjustment		10,846	(288,565)	40,643	(23,989)

	Total		63,115	962,153	1,198,428	2,755,882

Total comprehensive income for the period			1,205,536	4,018,824	1,473,135	3,826,143

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of operations and statement of comprehensive income

at June 30, 2017

All amounts in thousands of reais, except earnings or loss per share

Continued

			Parent company
		Note	2Q2017	YTD2017	2Q2016	YTD2016
		0			Restated	Restated
Profit for the period		0	1,089,848	2,897,400	406,980	1,230,371
		0
Other comprehensive income or loss:		0
Items that will be reclassified subsequently to profit or loss		0
	Fair value of cash flow hedge	0	(47,451)	7,494	219,366	358,953
	Income tax and social contribution	0	16,133	(2,548)	(74,584)	(122,044)
	Fair value of cash flow hedge - Braskem Idesa	0	8,280	32,754	(50,590)	(134,342)
	Income tax and social contribution	0	(2,484)	(9,826)	15,177	40,303
	Fair value of cash flow hedge from jointly-controlled	0	3,168	3,762	(2,761)	(12,765)
		0	(22,354)	31,636	106,608	130,105
		0
	Exchange variation of foreign sales hedge	15.3(a.i)	(711,317)	(230,507)	2,213,130	4,433,659
	Sales Hedge - transfer to profit or loss	15.3(a.i)	249,722	498,962	345,443	767,243
	Income tax and social contribution on exchange variation	0	156,942	(91,275)	(869,915)	(1,768,307)
	Exchange variation of foreign sales hedge - Braskem Idesa	15.3(a.ii)	372,053	1,052,702	(685,687)	(820,479)
	Sales Hedge - transfer to profit or loss - Braskem Idesa	15.3(a.ii)	32,244	55,432	10,723	10,723
	Income tax on exchange variation - Braskem Idesa	0	(121,289)	(332,440)	205,706	246,144
		0	(21,645)	952,874	1,219,400	2,868,983
		0
	Foreign subsidiaries currency translation adjustment	0	76,126	(175,118)	(79,984)	(215,975)
		0
	Total	0	32,127	809,392	1,246,024	2,783,113
		0
Total comprehensive income for the period		0	1,121,975	3,706,792	1,653,004	4,013,484

			Parent company
		YTD2017	YTD2016
	Note	Basic and diluted	Basic and diluted
Profit per share attributable to the shareholders of the Company	0		Restated
of continued operations at the end of the period (R$)	21
(expressed in reais)	0
Earnings per share - common	0	3.6309	1.5206
Earnings per share - preferred shares class "A"	0	3.6309	1.5206
Earnings per share - preferred shares class "B"	0	0.6069	0.6065

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of operations and statement of comprehensive income

at June 30, 2017

All amounts in thousands of reais, except earnings or loss per share

Continued

													Consolidated
		Attributed to shareholders' interest
					Revenue reserves						Total
							Additional	Other		Retained	Braskem	Non-controlling	Total
				Capital	Legal	Retention	dividends	comprehensive	Treasury	earnings	shareholders'	interest in	shareholders'
	Note	Capital		reserve	reserve	of profits	proposed	income	shares	(losses)	interest	Braskem Idesa	equity
	0
At December 31, 2015 - restated	2.4	8,043,222	#	232,430	229,992	2,404,663	247,364	(9,060,710)	(49,819)	(416,768)	1,630,374	(684,885)	945,489
	0
Comprehensive income for the period:	0
Profit for the period - restated	0	-		-	-	-	-	-	-	1,230,371	1,230,371	(160,110)	1,070,261
Exchange variation of foreign sales hedge, net of taxes	0	-		-	-	-	-	2,868,983	-	-	2,868,983	(187,871)	2,681,112
Fair value of cash flow hedge, net of taxes	0	-		-	-	-	-	130,105	-	-	130,105	(31,346)	98,759
Foreign subsidiaries currency translation adjustment	0	-		-	-	-	-	(215,975)	-	-	(215,975)	191,986	(23,989)
	0	-		-	-	-	-	2,783,113	-	1,230,371	4,013,484	(187,341)	3,826,143
	0
Equity valuation adjustments:	0
Realization of additional property, plant and equipment price-level restatement, net of taxes	0	-		-	-	-	-	(13,619)	-	13,619	-	-	-
Realization of deemed cost of jointly-controlled investment, net of taxes	0	-		-	-	-	-	(482)	-	482	-	-	-
	0	-		-	-	-	-	(14,101)	-	14,101	-	-	-

Contributions to shareholders:		-
Additional dividends approved by the General Meeting		-		-	-	-	(247,364)	-	-	-	(247,364)	-	(247,364)
		-		-	-	-	(247,364)	-	-	-	(247,364)	-	(247,364)
	0	-
At June 30, 2016 - restated	2.4	8,043,222		232,430	229,992	2,404,663	-	(6,291,698)	(49,819)	827,704	5,396,494	(872,226)	4,524,268
	0
At December 31, 2016	0	8,043,222		232,430	229,992	604,624	-	(6,321,859)	(49,819)	-	2,738,590	(1,017,880)	1,720,710
	0
Comprehensive income for the period:
Profit for the period	0	-		-	-	-	-	-	-	2,897,399	2,897,399	159,271	3,056,670
Exchange variation of foreign sales hedge, net of taxes	0	-		-	-	-	-	952,874	-	-	952,874	258,565	1,211,439
Fair value of cash flow hedge, net of taxes	0	-		-	-	-	-	31,636	-	-	31,636	7,643	39,279
Foreign currency translation adjustment	0	-		-	-	-	-	(175,118)	-	-	(175,118)	(113,447)	(288,565)
	0	-		-	-	-	-	809,392	-	2,897,399	3,706,791	312,032	4,018,823
	0
Equity valuation adjustments:
Realization of additional property, plant and equipment price-level restatement, net of taxes	0	-		-	-	-	-	(13,488)	-	13,488	-	-	-
Realization of deemed cost of jointly-controlled investment, net of taxes	0	-		-	-	-	-	(482)	-	482	-	-	-
	0	-		-	-	-	-	(13,970)	-	13,970	-	-	-
Contributions to shareholders:	0
Prescribed dividends		-		-	-	-	-	-	-	482	482	-	482
		-		-	-	-	-	-	-	482	482	-	482

At June 30, 2017	0	8,043,222		232,430	229,992	604,624	-	(5,526,437)	(49,819)	2,911,851	6,445,863	(705,848)	5,740,015

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of changes in shareholder’s equity

All amounts in thousands of reais

											Parent Company
				Revenue reserves
						Additional	Other			Retained	Total
			Capital	Legal	Retention	dividends	comprehensive		Treasury	earnings	shareholders'
	Note	Capital	reserve	reserve	of profits	proposed	income		shares	(losses)	equity

At December 31, 2015 - restated	2.4	8,043,222	232,430	229,992	2,404,663	247,364	(9,060,710)		(927)	(416,768)	1,679,266
	0
Comprehensive income for the period:	0
Profit for the period - restated	0	-	-	-	-	-	-	#	-	1,230,371	1,230,371
Exchange variation of foreign sales hedge, net of taxes	0	-	-	-	-	-	2,868,983		-	-	2,868,983
Fair value of cash flow hedge, net of taxes	0	-	-	-	-	-	130,105	#	-	-	130,105
Foreign subsidiaries currency translation adjustment	0	-	-	-	-	-	(215,975)	#	-	-	(215,975)
	0	-	-	-	-	-	2,783,113		-	1,230,371	4,013,484
	0							#
Equity valuation adjustments:	0							#
Realization of additional property, plant and equipment price-level restatement, net of taxes	0	-	-	-	-	-	(13,619)	#	-	13,619	-
Realization of deemed cost of jointly-controlled investment, net of taxes	0	-	-	-	-	-	(482)	#	-	482	-
		-	-	-	-	-	(14,101)		-	14,101	-
	0
Contributions to shareholders:
Additional dividends approved by the General Meeting		-	-	-	-	(247,364)	-		-	-	(247,364)
		-	-	-	-	(247,364)	-		-	-	(247,364)

At June 30, 2016 - restated	2.4	8,043,222	232,430	229,992	2,404,663	-	(6,291,698)		(927)	827,704	5,445,386
	0
At December 31, 2016	0	8,043,222	232,430	229,992	604,624	-	(6,321,859)		(927)	-	2,787,482
	0
Comprehensive income for the period:	0
Profit for the period	0	-	-	-	-	-	-		-	2,897,399	2,897,399
Exchange variation of foreign sales hedge, net of taxes	0	-	-	-	-	-	952,874		-	-	952,874
Fair value of cash flow hedge, net of taxes	0	-	-	-	-	-	31,636		-	-	31,636
Foreign currency translation adjustment	0	-	-	-	-	-	(175,118)		-	-	(175,118)
	0	-	-	-	-	-	809,392		-	2,897,399	3,706,791
	0
Equity valuation adjustments:	0
Realization of deemed cost of jointly-controlled investment, net of taxes	0	-	-	-	-	-	(13,488)		-	13,488	-
Realization of additional property, plant and equipment price-level restatement, net of taxes	0	-	-	-	-	-	(482)		-	482	-
		-	-	-	-	-	(13,970)	#	-	13,970	-
Contributions to shareholders:	0
Prescribed dividends		-	-	-	-	-	-		-	482	482
		-	-	-	-	-	-		-	482	482

At June 30, 2017	0	8,043,222	232,430	229,992	604,624	-	(5,526,437)		(927)	2,911,851	6,494,755

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of changes in shareholder’s equity

All amounts in thousands of reais

			Consolidated		Parent company
		Note	Jun/2017	Jun/2016	Jun/2017	Jun/2016
		2.4		Restated		Restated
Profit before income tax and social contribution and for the result with discontinued operations		0	4,156,758	1,542,413	3,462,324	1,304,705
		0	-	-	-	-
Adjustments for reconciliation of profit		0	-	-	-	-
	Depreciation, amortization and depletion	0	1,424,202	1,243,975	921,386	1,030,708
	Results from equity investments	10(c)	(22,851)	(13,377)	(1,573,361)	(1,087,221)
	Interest and monetary and exchange variations, net	0	1,292,218	931,709	1,282,308	1,029,508
	Gain from divestment in subsidiary	3	(276,816)	-	(276,366)	-
	Provision for losses and write-offs of long-lived assets	0	25,730	12,959	19,535	12,930
		0
		0	6,599,241	3,717,679	3,835,826	2,290,630
		0
Changes in operating working capital		0
	Held-for-trading financial investments	0	(1,430,383)	(466,498)	(1,447,486)	(960)
	Trade accounts receivable	0	(820,306)	732,656	(1,102,601)	502,406
	Inventories	0	(663,855)	373,946	(174,709)	440,615
	Taxes recoverable	0	184,040	686,777	185,809	459,258
	Prepaid expenses	0	(102,697)	7,922	(48,982)	24,486
	Other receivables	0	(46,675)	(25,407)	140,474	(253,384)
	Trade payables	0	(1,346,034)	(2,364,352)	1,521,780	(1,304,351)
	Taxes payable	0	(177,213)	(9,815)	(26,184)	38,507
	Advances from customers	0	(71,718)	(47,148)	5,917	(19,447)
	Leniency agreement	0	(607,358)	-	(206,460)	-
	Sundry provisions	0	(2,516)	5,043	(8,545)	26,102
	Other payables	0	(227,315)	(179,173)	(296,579)	(208,102)
		0
Cash from operations		0	1,287,211	2,431,630	2,378,260	1,995,760
		0
	Interest paid	0	(1,024,942)	(938,968)	(366,823)	(273,968)
	Income tax and social contribution paid	0	(602,278)	(668,126)	(299,376)	(40,176)
		0
Net cash generated by operating activities		0	(340,009)	824,536	1,712,061	1,681,616
		0
Proceeds from the sale of fixed assets		0	1,468	114	1,255	19
Funds received on the sale of investments		3	450,000	-	449,550	-
Acquisitions of property, plant and equipment and intangible assets		(i)	(755,063)	(1,233,146)	(501,396)	(435,452)
Premuim in the dollar put option		0	(9,771)	-	(9,771)	-
Held-for-maturity financial investments		0	-	38,353	-	38,353
		0
Net cash used in investing activities		0	(313,366)	(1,194,679)	(60,362)	(397,080)
		0
Short-term and Long-term debit		0	-	-	-	-
	Obtained	0	1,486,963	1,937,284	1,486,963	1,957,182
	Payments	0	(1,513,356)	(1,865,492)	(1,101,584)	(1,781,594)
Braskem Idesa borrowings		0	-	-	-	-
	Obtained funds	0	187,959	153,126	-	-
	Payment of borrowings	0	(448,525)	(227,201)	-	-
Related parties		0	-	-	-	-
	Obtained	0	-	-	87,067	-
	Payments	0	-	-	(2,969,803)	(2,071,978)
Dividends paid		0	(41)	(998,982)	(41)	(998,982)
		0
Net cash provided by financing activities		0	(287,000)	(1,001,265)	(2,497,398)	(2,895,372)
		0
Exchange variation on cash of foreign subsidiaries		0	(50,039)	568,780	-	-
		0
Increase (decrease) in cash and cash equivalents		0	(990,414)	(802,628)	(845,699)	(1,610,836)
		0
Represented by		0
	Cash and cash equivalents at the beginning of the period	0	6,701,864	7,043,262	3,561,431	4,415,764
	Cash and cash equivalents at the end of the period	0	5,711,450	6,240,634	2,715,732	2,804,928
		0
Increase (decrease) in cash and cash equivalents		0	(990,414)	(802,628)	(845,699)	(1,610,836)

(i) In the period ended June 30, 2016, the capitalized interest paid that was included in this item (R$252,722 Consolidated, R$33,640 Parent Company) was reclassified to “Interest paid” (Note2.5(a)).

The Management notes are an integral part of the financial statements.

Braskem S.A.

Statement of cash flows

at June 30, 2017

All amounts in thousands of reais

		Consolidated		Parent company
		Jun/2017	Jun/2016	Jun/2017	Jun/2016
			Restated		Restated
Revenue		28,908,199	27,439,467	22,829,462	21,219,508
	Sale of goods, products and services	28,643,780	27,589,221	22,605,553	21,351,776
	Other income (expenses), net	261,729	(108,499)	221,528	(93,520)
	Allowance for doubtful accounts	2,690	(41,255)	2,381	(38,748)
Inputs acquired from third parties		(20,198,975)	(19,748,486)	(16,912,801)	(16,025,575)
	Cost of products, goods and services sold	(19,217,807)	(18,884,716)	(16,173,930)	(15,433,387)
	Material, energy, outsourced services and others	(964,070)	(859,438)	(721,948)	(588,183)
	Impairment of assets	(17,098)	(4,332)	(16,923)	(4,005)
Gross value added		8,709,224	7,690,981	5,916,661	5,193,933