Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Kemira Oyj Ord — Q4 2024 Earnings Presentation
34 slides from Kemira Oyj's earnings presentation, Feb 11, 2025
Slide 1: Continued strong performance in 2024, good volume growth in full year and Q4
ANTTI SALMINEN, PRESIDENT & CEO PETRI CASTRÉN, CFO FEBRUARY 11, 2025 Continued strong performance in 2024, good volume growth in full year 2024 and Q4 2024 JANUARY – DECEMBER 2024
Slide 2: Highlights of 2024
Highlights of 2024 • Continued strong financial performance in 2024: – Continued strong margin performance in both segments – Sales volumes increased in both segments during the year, sales prices increased sequentially in Q4 – Solid cash flow in 2024 with strong Q4 cash flow • Good progress on the
Slide 3: Accelerating profitable growth with the strategic priorities
Accelerating profitable growth with the strategic priorities EXPAND IN WATER BUILD LEADING RENEWABLE UNLOCK NEW GROWTH SOLUTIONS PORTFOLIO PLATFORMS Significantly grow our water Enable sustainability transformation Increase penetration into selected new business by expanding to additional in our exi
Slide 4: Several actions taken to accelerate growth in recent years
Several actions taken to accelerate growth in recent years • Acquisition of SimAnalytics, a digital start-up • Initial plans to build a re- • Coagulant capacity expansion in the UK activation plant for activated carbon in Sweden • Expanded renewables partnership with IFF announced 2022 2024 2023 • N
Slide 5: Further improvement in customer satisfaction and employee engagement
Further improvement in customer satisfaction and employee engagement NET PROMOTER SCORE EMPLOYEE ENGAGEMENT 59 80 (57 in December 2023) (80 in 2023) All- Above time industry benchmark high FEBRUARY 11, 2025 Q4 2024 RESULT PRESENTATION 5
Slide 6: Financial highlights of 2024
Financial highlights of 2024 Slight organic revenue decline in 2024 EUR million Q4 Q4 • Organic revenue growth 1% in Q4 2024; -1% in (except ratios) 2024 2023 Δ% 2024 2023 Δ% 2024 Revenue 723.7 808.8 -11% 2,948.1 3,383.7 -13% • FY2024: volume growth in both segments, sales prices decreased Revenue,
Slide 7: Pulp & Paper: Good margin performance in a soft market
Pulp & Paper: Good margin performance in a soft market – sequential volume and price growth in Q4 REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) EUR million Market environment in 2024 537 556 505 447 488 421 404 419 423 412 399 412 • Market declined in 2024 following weak macroeconomic environment and
Slide 8: Industry & Water: Good full year organic growth with strong margin performance
Industry & Water: Good full year organic growth with strong margin performance REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) EUR million Market environment in 2024 435412 425 401 419 390 374 321 • Good demand in both municipal and industrial water 322 291 288 291 340 296 321329 329311 311 271 treatmen
Slide 9: Sustainability highlights 2024
Sustainability highlights 2024 KEY PERFOMANCE INDICATORS: SAFETY PEOPLE CIRCULARITY WATER CLIMATE*** Reach Glint top 10% cross Reduce waste intensity** Reach the Leadership level Scope 1 and 2 emissions - TRIF* industry norm for Diversity by 15% by the end of 2030 (A-/A) in water 51.23% by the end o
Slide 10: Strategy execution in 2025
STRATEGY EXECUTION IN 2025 WATER SOLUTIONS • Continue expansion investments and execute on M&A pipeline • Maintain strong financial performance PACKAGING & HYGIENE SOLUTIONS • Capture growth opportunities as markets start to recover; look for margin improvement opportunities • Strengthen presence in
Slide 11: Financials Q4 2024
PETRI CASTRÉN CFO Financials Q4 2024 FEBRUARY 11, 2025 Q4 2024 RESULT PRESENTATION 11
Slide 12: Strong operative EBITDA margin of 20.0% in 2024
Strong operative EBITDA margin of 20.0% in 2024 JANUARY-DECEMBER 2024 REVENUE AND ORGANIC GROWTH (Y-ON-Y) Organic revenue growth of -1% in 2024 EUR million • 3% organic growth in Industry & Water compensated for 3,384 revenue decline in Pulp & Paper -14% 2,917 2,948 4% -5% 0% 3% • Sales volumes incr
Slide 13: Q4 operative EBITDA margin at 18.7%
Q4 operative EBITDA margin at 18.7% Q4/2024 REVENUE AND ORGANIC GROWTH (Y-ON-Y) Organic revenue growth of 1% in Q4 2024 EUR million • Strong organic growth in Industry & Water compensated for 809 revenue decline in Pulp & Paper -15% 691 * 724 1% 0% 0% 3% • Sales volumes increased and sales prices we
Slide 14: Neutral net impact from sales prices and variable costs
Neutral net impact from sales prices and variable costs SALES PRICES AND VARIABLE COSTS (CHANGE Y-O-Y) EUR million 300 269 250 256 200 188 197 129 174 150 152 138 141 99 122 100 59 68 64 97 11 4 8 32 28 36 75 50 -20 -10 -2 -2 24 28 25 16 28 15 62 70 16 66 9 5 -3 47 42 -16 16 26 37 34 43 38 -23 -26 -
Slide 15: Items affecting comparability in 2024
Items affecting comparability in 2024 • Q4 2024: Items affecting comparability, Q4 2024 Q4 2023 FY 2024 FY 2023 • EUR 8 million provision related to the EUR million implementation of Kemira’s new organization Within EBITDA -18.5 -111.4 -34.8 -126.7 • EUR 8 million provision in Q4 2024 Pulp & Paper -
Slide 16: Strong balance sheet enabling flexibility
Strong balance sheet enabling flexibility NET DEBT (EUR million) AND LEVERAGE RATIO* 850 • Balance sheet remains record-strong 771 535 • Gearing 16% (32% in Q4 2023) 2.0 1.3 292 • Net debt / operative EBITDA at a record-strong level 0.8 of 0.5 0.5 • Average interest rate of net debt excluding leases
Slide 17: Continued solid cash flow generation
Continued solid cash flow generation ALL KEY FIGURES IN EUR MILLION CASH FLOW FROM OPERATIONS • Strong cash flow during the fourth quarter and solid 546 cash flow in FY 2024; net working capital decreased 97 485 slightly 401 98 133 42 115 143 109 Q1 Q3 • Supplementary pension fund Neliapila to retur
Slide 18: Strong track record of increasing dividends
Strong track record of increasing dividends – dividend proposal of EUR 0.74 per share • Dividend is proposed to be increased to a new high of EUR 0.74 per share – strong track record in increasing dividends since ◼ Dividend per share Dividend yield 2018 0.74* 0.68 • Board of Directors proposes to
Slide 19: Outlook for 2025
Outlook for 2025 OUTLOOK REVENUE ASSUMPTIONS FOR 2025 Kemira’s revenue in local currencies, excluding • Kemira’s end-market demand (in volumes) is acquisitions and divestments, is expected to be expected to grow slightly during the year. The water between EUR 2,800 and 3,200 million in 2025 (2024 tr
Slide 20: Chemistry with a purpose. Better every day.
4 e mn | cra Chemistry with a purpose. Better every day.
Slide 21: Appendix
Appendix FEBRUARY 11, 2025 Q4 2024 RESULT PRESENTATION 21
Slide 22: Kemira in brief
Kemira in brief LTM EXCL. OIL & GAS: REVENUE EUR 2,903.5 MILLION, OPERATIVE EBITDA EUR 582.1 MILLION, OPERATIVE EBITDA MARGIN 20.0%, OPERATIVE ROCE 20.6% BUSINESS UNITS GEOGRAPHIES PRODUCTS ◼ 20% ◼ 45% 10% ◼ 15% Other: Fiber Essentials APAC e.g. defoamers, ◼ 25% Bleaching Water 35% 1. China dispersa
Slide 23: Water Solutions
Water Solutions REVENUE AND OPERATIVE EBITDA REVENUE BY APPLICATION REVENUE BY EUR million TYPE AND MARKET GROWTH PRODUCT CATEGORY 1,800 336 1,600 282 279 ◼ 50% ◼ 25% ◼ 25% ◼ 15% ◼ 60% 1,400 224 Industrial Urban Urban Other Coagulants 1,200 192 175 181 Americas** EMEA** products 1,000 800 1,542 1,63
Slide 24: Packaging & Hygiene Solutions
Packaging & Hygiene Solutions FINANCIAL PROFILE REVENUE BY CUSTOMER REVENUE BY Restated figures to be published during TYPE AND MARKET GROWTH PRODUCT CATEGORY Q1 2025 ◼ 1% Other ◼ 55% ◼ 25% ◼ 10% ◼ 5% ◼ 5% Packaging & Printing & Tissue Pulp Coagulants Board Writing 35% <18% >16% Operative ◼ 15% shar
Slide 25: Fiber Essentials
Fiber Essentials FINANCIAL PROFILE REVENUE BY CUSTOMER REVENUE BY Restated figures to be published during TYPE AND MARKET GROWTH PRODUCT CATEGORY Q1 2025 ◼ 100% ◼ 15% Pulp Others 20% >21% <16% Operative ◼ 15% share of Operative EBITDA above ROCE below Caustic ◼ 55% Group group financial Sodium Chlor
Slide 26: Very limited currency impact in 2024
Very limited currency impact in 2024 KEMIRA REVENUE DISTRIBUTION IN 2024 • Main currency exposure comes via translation ◼ 6% Others impact ◼ 2% PLN ◼ 45% EUR • Transaction risk is limited as revenues and costs ◼ 2% BRL are typically in same currency due to local ◼ 2% SEK manufacturing. Transaction r
Slide 27: Key figures (reported)
Key figures (reported) EUR million Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 2024 2023 Revenue 723.7 727.6 733.4 763.3 808.8 2,948.1 3,383.7 Operative EBITDA 135.0 147.4 140.5 162.5 162.7 585.4 666.7 margin 18.7% 20.3% 19.2% 21.3% 20.1% 19.9% 19.7% Operative EBIT 86.2 100.8 94.0 117.6 112.6 398.7 463.
Slide 28: Key figures, Oil & Gas divestment adjusted
Key figures, Oil & Gas divestment adjusted EUR million Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 2024 2023 Revenue 723.7 727.6 733.4 718.8 690.2 2,903.5 2,889.0 Operative EBITDA 135.0 147.4 140.5 159.2 149.3 582.1 595.9 margin 18.7% 20.3% 19.2% 22.2% 21.6% 20.0% 20.6% Operative EBIT 86.2 100.8 94.0 11
Slide 29: Cash flow
Cash flow EUR million Q4 2024 Q4 2023 2024 2023 Net profit for the period 51.1 -27.1 262.7 211.3 Total adjustments 81.6 177.9 312.9 429.4 Change in net working capital 51.3 2.7 28.5 14.9 Finance expenses -7.0 -4.2 -29.8 -18.8 Income taxes paid -11.6 -16.1 -89.6 -90.8 Net cash generated from operatin
Slide 30: Pulp & Paper
Pulp & Paper KEY FINANCIALS EUR million Q4 Q3 Q2 Q1 Q4 2024 2023 2024 2024 2024 2024 2023 Revenue 412.4 399.0 412.4 422.9 418.8 1,646.7 1,748.2 Operative EBITDA 76.2 70.7 67.9 88.2 87.5 303.1 330.9 margin 18.5% 17.7% 16.5% 20.9% 20.9% 18.4% 18.9% Operative EBIT 45.0 41.1 38.0 59.8 58.6 183.8 216.3 m
Slide 31: Industry & Water
Industry & Water KEY FINANCIALS EUR million Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 2024 2023 Revenue 311.3 328.6 321.0 340.5 390.0 1,301.4 1,635.5 Revenue, O&G divestment adjusted 311.3 328.6 321.0 295.9 271.4 1,256.9 1,140.9 Operative EBITDA 58.8 76.7 72.6 74.3 75.2 282.3 335.8 Margin 18.9% 23.3%
Slide 32: Revenue split by country
Revenue split by country FY 2024 Other APAC 6% China 4% Other EMEA 9% USA 24% Belgium 2% Netherlands 3% France 3% Spain 3% Italy 3% Canada 7% Poland 3% Brazil 2% UK 3% Other Americas 4% Germany 4% Sweden 7% Finland 13% FEBRUARY 11, 2025 Q4 2024 RESULT PRESENTATION 32
Slide 33: Important information about financial figures
Important information about financial figures Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as revenue growth in loc
Slide 34: WWW.KEMIRA.COM
WWW.KEMIRA.COM