bakitr1q17_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

March 31, 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 March 31, 2017, which comprises the balance sheet as of March 31, 2017, the statements of profit or loss and comprehensive income for the three-month period then ended, changes in equity and cash flows for the three-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 three-month period ended March 31, 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 and cash flows for the period of three-month ended March 31, 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 March 31, 2017

All amounts in thousands of reais                                                                                                                                      

 

 

       

Consolidated

 

Parent company

Assets

Note

  

Mar/2017

  

Dec/2016

  

Mar/2017

  

Dec/2016

   

 

                

Current assets

 

                
 

Cash and cash equivalents

4

  

6,617,161

 

6,701,864

 

4,374,897

 

3,561,431

 

Financial investments

5

  

1,011,223

 

1,190,483

 

587,773

 

741,086

 

Trade accounts receivable

6

  

2,243,287

 

1,634,137

 

1,252,534

 

952,689

 

Inventories

7

  

5,546,050

 

5,238,014

 

3,706,576

 

3,795,899

 

Taxes recoverable

9

  

592,413

 

826,015

 

351,717

 

543,275

 

Dividends and interest on capital

8

  

14,986

 

14,986

 

31,421

 

31,421

 

Prepaid expenses

 

  

73,780

 

101,747

 

53,066

 

83,252

 

Related parties

8(b)

  

 

  

 

  

55,009

 

172,344

 

Derivatives operations

15.3

  

4,592

 

8,387

 

4,592

 

8,387

 

Other receivables

 

  

177,509

 

180,915

 

152,795

 

128,231

   

 

  

 

  

 

  

 

  

 

   

 

  

16,281,001

 

15,896,548

 

10,570,380

 

10,018,015

   

 

                

Non-current assets held for sale

3

  

375,217

 

359,704

 

273,183

 

263,912

   

 

                
   

 

  

16,656,218

 

16,256,252

 

10,843,563

 

10,281,927

Non-current assets

 

                
 

Trade accounts receivable

6

  

64,932

 

70,236

 

3,669,457

 

2,794,889

 

Advances to suppliers

7

  

57,766

 

61,533

 

57,766

 

61,533

 

Taxes recoverable

9

  

1,156,582

 

1,088,353

 

1,058,587

 

998,039

 

Deferred income tax and social contribution

17(b.ii)

  

1,182,197

 

1,653,115

 

 

  

42,459

 

Judicial deposits

 

  

237,246

 

233,320

 

230,712

 

226,894

 

Related parties

8(b)

  

 

  

 

  

14,206

 

14,472

 

Insurance claims

 

  

50,848

 

50,653

 

50,848

 

50,653

 

Derivatives operations

15.3

  

30,321

 

29,308

 

 

  

 

 

Other receivables

 

  

135,894

 

140,971

 

128,108

 

129,704

 

Investments in subsidiaries and jointly-controlled investments

10(b)

  

105,102

 

92,313

 

5,555,196

 

4,132,529

 

Property, plant and equipment

11

  

29,606,664

 

29,336,710

 

15,745,870

 

15,963,127

 

Intangible assets

12

  

2,780,955

 

2,809,087

 

2,504,611

 

2,521,243

   

 

  

 

  

 

  

 

  

 

   

 

  

35,408,507

 

35,565,599

 

29,015,361

 

26,935,542

   

 

                

Total assets

 

  

52,064,725

 

51,821,851

 

39,858,924

 

37,217,469

 

 

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

 

1

 

 
 

Braskem S.A.

 

Balance sheet

at March 31, 2017

All amounts in thousands of reais     

 Continued

                                                                                                                                                               

 

       

Consolidated

 

Parent company

Liabilities and shareholders' equity

Note

  

Mar/2017

  

Dec/2016

  

Mar/2017

  

Dec/2016

   

 

                

Current liabilities

 

                
 

Trade payables

 

  

5,070,441

 

6,545,136

 

2,254,368

 

2,056,661

 

Borrowings

13

  

3,011,605

 

2,594,463

 

2,671,129

 

2,117,409

 

Braskem Idesa borrowings

14

  

9,911,068

 

10,437,791

 

 

  

 

 

Derivatives operations

15.3

  

30,130

 

29,042

 

9,052

 

 

 

Payroll and related charges

 

  

376,210

 

562,455

 

293,913

 

431,688

 

Taxes payable

16

  

1,048,893

 

624,080

 

704,909

 

424,088

 

Dividends

 

  

3,052

 

3,083

 

3,052

 

3,083

 

Advances from customers

 

  

219,846

 

203,216

 

39,366

 

28,200

 

Leniency agreement

19.3

  

1,291,488

 

1,354,492

 

1,195,646

 

948,286

 

Sundry provisions

18

  

83,441

 

112,891

 

64,053

 

87,084

 

Accounts payable to related parties

8(b)

  

 

  

 

  

1,020,978

 

956,609

 

Other payables

 

  

397,041

 

476,262

 

248,173

 

295,233

   

 

  

 

  

 

  

 

  

 

   

 

  

21,443,215

 

22,942,911

 

8,504,639

 

7,348,341

   

 

                

Non-current liabilities held for sale

3

  

102,033

 

95,396

 

 

  

 

   

 

                
   

 

  

21,545,248

 

23,038,307

 

8,504,639

 

7,348,341

Non-current liabilities

 

                
 

Trade payables

 

  

229,489

 

201,686

 

8,368,970

 

8,832,553

 

Borrowings

13

  

19,635,082

 

20,736,604

 

6,025,913

 

6,463,032

 

Derivatives operations

15.3

  

799,004

 

861,302

 

799,004

 

861,302

 

Taxes payable

16

  

31,371

 

24,097

 

30,948

 

23,830

 

Accounts payable to related parties

8(b)

  

 

  

 

  

8,004,902

 

8,234,053

 

Loan to non-controlling shareholders of Braskem Idesa

 

  

1,597,072

 

1,620,519

 

 

  

 

 

Deferred income tax and social contribution

17(b.ii)

  

808,828

 

510,523

 

295,113

 

 

 

Post-employment benefits

 

  

161,160

 

162,136

 

71,899

 

71,899

 

Provision for losses on subsidiaries

 

  

 

  

 

  

87,382

 

92,365

 

Advances from customers

 

  

115,215

 

162,955

 

 

  

 

 

Contingencies

19

  

1,001,716

 

985,237

 

942,808

 

926,819

 

Leniency agreement

19.3

  

1,276,507

 

1,498,738

 

1,179,105

 

1,400,224

 

Sundry provisions

18

  

206,093

 

206,245

 

169,939

 

169,499

 

Other payables

 

  

123,942

 

92,792

 

6,003

 

6,070

   

 

  

 

  

 

  

 

  

 

   

 

  

25,985,479

 

27,062,834

 

25,981,986

 

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

 

  

(5,551,644)

  

(6,321,859)

  

(5,551,644)

  

(6,321,859)

 

Treasury shares

 

  

(49,819)

  

(49,819)

  

(927)

  

(927)

 

Retained earnings

 

  

1,814,602

 

 

  

1,814,602

 

 

   

 

  

 

  

 

  

 

  

 

 

Total attributable to the Company's shareholders

 

  

5,323,407

 

2,738,590

 

5,372,299

 

2,787,482

   

 

                
 

Non-controlling interest in Braskem Idesa

 

  

(789,409)

  

(1,017,880)

  

 

  

 

   

 

                
   

 

  

4,533,998

 

1,720,710

 

5,372,299

 

2,787,482

   

 

                

Total liabilities and shareholders' equity

 

  

52,064,725

 

51,821,851

 

39,858,924

 

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 March 31, 2017

All amounts in thousands of reais                                        

 

  

         

Consolidated

  

Parent company

Continued operations

  

Note

  

Mar/2017

  

Mar/2016

  

Mar/2017

  

Mar/2016

     

 

      

Restated

      

Restated

Net sales revenue

  

22

  

12,599,728

 

11,914,595

 

9,207,516

 

9,020,651

 

Cost of products sold

  

 

  

(8,911,633)

  

(8,613,285)

  

(7,183,595)

  

(7,148,985)

     

 

                
     

 

  

3,688,095

 

3,301,310

 

2,023,921

 

1,871,666

     

 

                

Income (expenses)

 

 

                
 

Selling and distribution

  

 

  

(346,302)

  

(306,756)

  

(224,492)

  

(222,625)

 

General and administrative

 

 

  

(310,563)

  

(285,256)

  

(199,802)

  

(169,918)

 

Research and development

  

 

  

(33,662)

  

(42,594)

  

(23,291)

  

(23,065)

 

Results from equity investments

  

10(c)

  

12,209

 

1,687

 

1,168,880

 

791,874

 

Other income (expenses), net

 

23

  

(101,509)

  

(137,623)

  

(93,134)

  

(109,697)

     

 

                
     

 

  

2,908,268

 

2,530,768

 

2,652,082

 

2,138,235

     

 

                

Financial results

  

24

                
 

Financial expenses

 

 

  

(835,509)

  

(790,382)

  

(559,412)

  

(737,307)

 

Financial income

  

 

  

164,980

 

165,494

 

151,092

 

144,063

 

Exchange rate variations, net

  

 

  

285,035

 

(860,396)

  

(213,275)

  

(821,635)

     

 

                
     

 

  

(385,494)

  

(1,485,284)

  

(621,595)

  

(1,414,879)

     

 

                

Profit before income tax and

  

 

                

social contribution

 

 

  

2,522,774

 

1,045,484

 

2,030,487

 

723,356

     

 

                
 

Current and deferred income tax and social contribution

  

17(a)

  

(617,400)

  

(260,818)

  

(231,811)

  

86,929

     

 

                

Profit for the period of continued operations

  

 

  

1,905,374

 

784,666

 

1,798,676

 

810,285

     

 

                

Discontinued operations results

  

3

                
 

Profit from discontinued operations

  

 

  

13,499

 

16,303

 

8,876

 

13,106

 

Current and deferred income tax and social contribution

  

 

  

(4,623)

  

(5,415)

  

 

  

 

     

 

  

8,876

 

10,888

 

8,876

 

13,106

     

 

                

Profit for the period

  

 

  

1,914,250

 

795,554

 

1,807,552

 

823,391

     

 

                

Attributable to:

  

 

                
 

Company's shareholders

  

 

  

1,807,552

 

823,391

 

 

  

 

 

Non-controlling interest in Braskem Idesa

  

 

  

106,698

 

(27,837)

        
     

0

                

Profit for the period

  

0

  

1,914,250

 

795,554

       

 

 

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

 

 

3

 

 
 

Braskem S.A.

 

Statement of operations and statement of comprehensive income

at March 31, 2017

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

Continued

 

 
         

Consolidated

  

Parent company

     

Note

  

Mar/2017

  

Mar/2016

  

Mar/2017

  

Mar/2016

     

 

      

Restated

      

Restated

Profit for the period

  

 

  

1,914,250

 

795,554

 

1,807,552

 

823,391

     

 

                

Other comprehensive income or loss:

  

 

                

Items that will be reclassified subsequently to profit or loss

  

 

                
 

Fair value of cash flow hedge

  

 

  

87,578

 

27,918

 

54,945

 

139,587

 

Income tax and social contribution

  

 

  

(28,471)

  

(13,959)

  

(18,681)

  

(47,460)

 

Fair value of cash flow hedge - Braskem Idesa

  

 

  

 

  

 

  

24,474

 

(83,752)

 

Income tax and social contribution

  

 

  

 

  

 

  

(7,342)

  

25,126

 

Fair value of cash flow hedge from jointly-controlled

  

 

  

594

 

(10,004)

  

594

 

(10,004)

     

 

  

59,701

 

3,955

 

53,990

 

23,497

     

 

                
 

Exchange variation of foreign sales hedge

  

15.3(a.i)

  

480,810

 

2,220,529

 

480,810

 

2,220,529

 

Sales Hedge - transfer to profit or loss

  

15.3(a.i)

  

249,240

 

421,800

 

249,240

 

421,800

 

Income tax and social contribution on exchange variation

  

 

  

(248,217)

  

(898,392)

  

(248,217)

  

(898,392)

 

Exchange variation of foreign sales hedge - Braskem Idesa

  

15.3(a.ii)

  

907,532

 

(179,723)

  

680,649

 

(134,792)

 

Sales Hedge - transfer to profit or loss - Braskem Idesa

  

15.3(a.ii)

  

30,918

 

 

  

23,188

 

 

 

Income tax on exchange variation - Braskem Idesa

  

 

  

(281,535)

  

53,917

 

(211,151)

  

40,438

     

 

  

1,138,748

 

1,618,131

 

974,519

 

1,649,583

     

 

                
 

Foreign subsidiaries currency translation adjustment

  

 

  

(299,411)

  

(64,632)

  

(251,244)

  

(135,991)

     

 

  

 

  

 

  

 

  

 

 

Total

  

 

  

899,038

 

1,557,454

 

777,265

 

1,537,089

     

 

                

Total comprehensive income for the period

  

 

  

2,813,288

 

2,353,008

 

2,584,817

 

2,360,480

     

 

                

Attributable to:

  

 

                
 

Company's shareholders

  

 

  

2,584,817

 

2,360,480

       
 

Non-controlling interest in Braskem Idesa

  

 

  

228,471

 

(7,472)

        
     

 

  

 

  

 

        

Total comprehensive income for the period

  

 

  

2,813,288

 

2,353,008

       
                       
                       
                       
                 

 

 

Parent company

                 

Mar/2017

 

Mar/2016

     

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 (R$)

  

21

                

(expressed in reais)

  

 

                
 

Earnings per share - common

  

 

          

2.2608

 

1.0182

 

Earnings per share - preferred shares class "A"

  

 

          

2.2608

 

1.0182

 

Earnings per share - preferred shares class "B"

  

 

          

0.6069

 

0.6065

 

 

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

 

 

4

 

 
 

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 year:

 

                                            

Profit for the period - restated

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

823,391

 

823,391

 

(27,837)

  

795,554

Exchange variation of foreign sales hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

1,649,583

 

 

  

 

  

1,649,583

 

(31,452)

  

1,618,131

Fair value of cash flow hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

23,497

 

 

  

 

  

23,497

 

(19,542)

  

3,955

Foreign subsidiaries currency translation adjustment

 

  

 

  

 

  

 

  

 

  

 

  

(135,991)

  

 

  

 

  

(135,991)

  

71,359

 

(64,632)

 

 

  

 

  

 

  

 

  

 

  

 

  

1,537,089

 

 

  

823,391

 

2,360,480

 

(7,472)

  

2,353,008

 

 

                                            

Equity valuation adjustments:

 

                                            

Realization of additional property, plant and equipment price-level restatement, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(6,809)

  

 

  

6,809

 

 

  

 

  

 

Realization of deemed cost of jointly-controlled investment, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(241)

  

 

  

241

 

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

  

(7,050)

  

 

  

7,050

 

 

  

 

  

 

 

 

                                            

At March 31, 2016 - restated

2.4

  

8,043,222

 

232,430

 

229,992

 

2,404,663

 

247,364

 

(7,530,671)

  

(49,819)

  

413,673

 

3,990,854

 

(692,357)

  

3,298,497

 

 

                                            

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 year:

                                              

Loss for the year

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

1,807,552

 

1,807,552

 

106,698

 

1,914,250

Exchange variation of foreign sales hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

974,519

 

 

  

 

  

974,519

 

164,229

 

1,138,748

Fair value of cash flow hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

53,990

 

 

  

 

  

53,990

 

5,711

 

59,701

Foreign currency translation adjustment

 

  

 

  

 

  

 

  

 

  

 

  

(251,244)

  

 

  

 

  

(251,244)

  

(48,167)

  

(299,411)

 

 

  

 

  

 

  

 

  

 

  

 

  

777,265

 

 

  

1,807,552

 

2,584,817

 

228,471

 

2,813,288

 

 

                                            

Equity valuation adjustments:

                                              

Realization of additional property, plant and equipment price-level restatement, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(6,809)

  

 

  

6,809

 

 

  

 

  

 

Realization of deemed cost of jointly-controlled investment, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(241)

  

 

  

241

 

 

  

 

  

 

 

 

  

 

  

 

  

 

  

 

  

 

  

(7,050)

  

 

  

7,050

 

 

  

 

  

 

 

 

                                            

At March 31, 2017

 

  

8,043,222

 

232,430

 

229,992

 

604,624

 

 

  

(5,551,644)

  

(49,819)

  

1,814,602

 

5,323,407

 

(789,409)

  

4,533,998

 

 

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

 

5

 

 
 

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 year:

 

                                  

Profit for the year

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

823,391

 

823,391

Exchange variation of foreign sales hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

1,649,583

 

  

 

  

1,649,583

Fair value of cash flow hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

23,497

 

  

 

  

23,497

Foreign subsidiaries currency translation adjustment

 

  

 

  

 

  

 

  

 

  

 

  

(135,991)

 

  

 

  

(135,991)

 

 

  

 

  

 

  

 

  

 

  

 

  

1,537,089

 

  

823,391

 

2,360,480

 

 

                                  

Equity valuation adjustments:

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

 

Realization of additional property, plant and equipment price-level restatement, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(6,809)

 

  

6,809

 

 

Realization of deemed cost of jointly-controlled investment, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(241)

 

  

241

 

 

     

 

  

 

  

 

  

 

  

 

  

(7,050)

 

  

7,050

 

 

 

 

                                  

At March 31, 2016 - restated

2.4

  

8,043,222

 

232,430

 

229,992

 

2,404,663

 

247,364

 

(7,530,671)

(927)

  

413,673

 

4,039,746

 

 

                                    

At December 31, 2016

 

  

8,043,222

 

232,430

 

229,992

 

604,624

 

 

  

(6,321,859)

  

(927)

  

 

  

2,787,482

 

 

                                    

Comprehensive income for the year:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Loss for the year

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

1,807,552

 

1,807,552

Exchange variation of foreign sales hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

974,519

 

 

  

 

  

974,519

Fair value of cash flow hedge, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

53,990

 

 

  

 

  

53,990

Foreign currency translation adjustment

 

  

 

  

 

  

 

  

 

  

 

  

(251,244)

  

 

  

 

  

(251,244)

 

 

  

 

  

 

  

 

  

 

  

 

  

777,265

 

 

  

1,807,552

 

2,584,817

 

 

                                    

Equity valuation adjustments:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Realization of deemed cost of jointly-controlled investment, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(6,809)

  

 

  

6,809

 

 

Realization of additional property, plant and equipment price-level restatement, net of taxes

 

  

 

  

 

  

 

  

 

  

 

  

(241)

  

 

  

241

 

 

     

 

  

 

  

 

  

 

  

 

  

(7,050)

 

 

  

7,050

 

 

 

 

                                    

At March 31, 2017

 

  

8,043,222

 

232,430

 

229,992

 

604,624

 

 

  

(5,551,644)

  

(927)

  

1,814,602

 

5,372,299

 

 

 

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

 

6

 

 
 

Braskem S.A.

 

Statement of cash flows

at March 31, 2017

All amounts in thousands of reais

 

 

       

Consolidated

  

Parent company

   

Note

  

Mar/2017

  

Mar/2016

  

Mar/2017

  

Mar/2016

   

2.4

      

Restated

      

Restated

Profit (loss) before income tax and social contribution and 
  for the result with discontinued operations

0

  

2,522,774

 

1,061,787

 

2,030,487

 

736,462

   

 

  

 

  

Adjustments for reconciliation of profit

0

  

 

  
 

Depreciation, amortization and depletion

 

  

702,122

 

571,104

 

467,835

 

490,773

 

Results from equity investments

10(c)

 

(12,209)

  

(1,687)

  

(1,168,880)

  

(804,980)

 

Interest and monetary and exchange variations, net

  

214,931

 

364,706

 

561,345

 

541,291

 

Provision for losses and write-offs of long-lived assets

  

9,196

 

19,583

 

6,113

 

19,582

     

 

  

 

  

 

  

 

     

3,436,814

 

2,015,493

 

1,896,900

 

983,128

                   

Changes in operating working capital

0

                
 

Held-for-trading financial investments

  

188,498

 

(278,826)

  

173,492

 

(287,992)

 

Trade accounts receivable

  

(604,109)

  

525,108

 

(1,174,538)

  

439,200

 

Inventories

 

(316,471)

  

277,618

 

80,275

 

447,880

 

Taxes recoverable

  

206,326

 

316,153

 

148,468

 

165,058

 

Prepaid expenses

  

27,967

 

8,269

 

30,186

 

(975)

 

Other receivables

  

3,851

 

(8,479)

  

89,843

 

(47,434)

 

Trade payables

  

(1,283,309)

  

(1,883,587)

  

(102,293)

  

(1,603,311)

 

Taxes payable

  

25,688

 

(202,681)

  

126,802

 

102,339

 

Advances from customers

  

(31,110)

  

(5,336)

  

11,166

 

(937)

 

Leniency agreement

    

(296,591)

  
 

Sundry provisions

  

(13,123)

  

(5,003)

  

(6,602)

  

13,551

 

Other payables

  

(262,911)

  

32,171

 

(189,086)

  

27,820

     

 

  

 

  

 

  

 

Cash from operations

0

  

1,081,520

 

790,900

 

1,084,613

 

238,327

                   
 

Interest paid

  

(472,006)

  

(447,767)

  

(128,337)

  

(136,984)

 

Income tax and social contribution paid

  

(40,953)

  

(94,662)

  

(17,458)

  

(15,350)

     

 

  

 

  

 

  

 

Net cash generated by operating activities

  

568,561

 

248,471

 

938,818

 

85,993

                   

Proceeds from the sale of fixed assets

0

  

263

 

97

 

125

 

18

Acquisitions to property, plant and equipment and intangible assets

(i)

  

(272,934)

  

(566,910)

  

(197,899)

  

(193,584)

Premium in the dollar put option

0

  

(2,153)

  

 

  

(2,153)

  

 

     

 

  

 

  

 

  

 

Net cash used in investing activities

  

(274,824)

  

(566,813)

  

(199,927)

  

(193,566)

                   

Short-term and Long-term debit

  
 

Obtained

  

660,324

 

803,625

 

660,324

 

823,523

 

Payments

  

(886,221)

  

(968,354)

  

(506,800)

  

(925,757)

Project finance

  
 

Obtained funds

  

 

  

91,094

 
 

Payment of borrowings

  

(198,180)

  

(80,391)

  

Related parties

      
 

Obtained

      

48,086

 

 

 

Payments

      

(127,004)

  

(1,718,207)

Dividends paid

  

(31)

  

(4)

  

(31)

  

(4)

Repurchase of treasury shares

  

 

  

 

  

 

  

 

     

 

  

 

  

 

  

 

Net cash provided by financing activities

  

(424,108)

  

(154,030)

  

74,575

 

(1,820,445)

                   

Exchange variation on cash of foreign subsidiaries

  

45,668

 

238,273

 
     

 

  

 

  

 

  

 

Increase (decrease) in cash and cash equivalents

  

(84,703)

  

(234,099)

  

813,466

 

(1,928,018)

                   

Represented by

                
 

Cash and cash equivalents at the beginning of the year

  

6,701,864

 

7,043,262

 

3,561,431

 

4,415,764

 

Cash and cash equivalents at the end of the year

  

6,617,161

 

6,809,163

 

4,374,897

 

2,487,746

     

 

  

 

  

 

  

 

Increase (decrease) in cash and cash equivalents

0

  

(84,703)

  

(234,099)

  

813,466

 

(1,928,018)

 

(i) In the first quarter of 2016, the capitalized interest paid that was included in this item (R$188,725 Consolidated, R$16,974 Parent Company) was reclassified to “Interest paid” (Note 2.5(a)).

 

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

 

7

 

 
 

Braskem S.A.

 

Statement of value added

at March 31, 2017

All amounts in thousands of reais

 

 

 

       

Consolidated

  

Parent company

   

Note

  

Mar/2017

  

Mar/2016

  

Mar/2017

  

Mar/2016

   

2.4

      

Restated

      

Restated

Revenue

    

14,705,650

 

13,876,808

 

11,360,841

 

10,799,926

 

Sale of goods, products and services, including discontinued operations

  

14,692,787

 

13,942,809

 

11,362,160

 

10,861,088

 

Other income (expenses), net

    

14,184

 

(43,427)

  

302

 

(40,537)

 

Allowance for doubtful accounts

    

(1,321)

  

(22,574)

  

(1,621)

  

(20,625)

Inputs acquired from third parties

    

(10,090,801)

  

(9,920,081)

  

(8,482,794)

  

(8,246,829)

 

Cost of products, goods and services sold

    

(9,608,786)

  

(9,527,567)

  

(8,138,161)

  

(7,976,593)

 

Material, energy, outsourced services and others

    

(466,071)

  

(391,518)

  

(328,509)

  

(269,468)

 

Impairment of assets

    

(15,944)

  

(996)

  

(16,124)

  

(768)

Gross value added

    

4,614,849

 

3,956,727

 

2,878,047

 

2,553,097

                     

Depreciation, amortization and depletion

    

(702,122)

  

(571,104)

  

(467,835)

  

(490,773)

                     

Net value added produced by the entity

    

3,912,727

 

3,385,623

 

2,410,212

 

2,062,324

                     

Value added received in transfer

    

186,071

 

167,213

 

1,328,848

 

949,043

 

Results from equity investments

    

21,085

 

1,687

 

1,177,756

 

804,980

 

Financial income

    

164,980

 

165,494

 

151,092

 

144,063

 

Other

    

6

 

32

 

 

  

 

                     

Total value added to distribute

    

4,098,798

 

3,552,836

 

3,739,060

 

3,011,367

                     
                     

Personnel

    

342,267

 

309,578

 

240,357

 

179,975

 

Direct compensation

    

278,135

 

242,114

 

190,931

 

133,445

 

Benefits

    

48,209

 

49,932

 

33,265

 

29,232

 

FGTS (Government Severance Pay Fund)

    

15,923

 

17,532

 

16,161

 

17,298

                     

Taxes, fees and contribuitions

    

1,233,310

 

737,774

 

868,462

 

397,142

 

Federal

    

747,824

 

196,334

 

408,297

 

(40,093)

 

State

    

475,481

 

530,014

 

452,759

 

429,267

 

Municipal

 

  

10,005

 

11,426

 

7,406

 

7,968

   

 

                

Remuneration on third parties' capital

 

  

608,971

 

1,709,930

 

822,689

 

1,610,859

 

Financial expenses (including exchange variation)

 

  

544,051

 

1,640,889

 

767,592

 

1,554,182

 

Rentals

 

  

64,920

 

69,041

 

55,097

 

56,677

   

 

                

Remuneration on own capital

 

  

1,914,250

 

795,554

 

1,807,552

 

823,391

 

Profit (loss) for the year, including discontinued operations

    

1,798,676

 

812,503

 

1,798,676

 

810,285

 

Non-controlling interest in Braskem Idesa