Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Kemira Oyj Ord — Q2 2025 Earnings Presentation
34 slides from Kemira Oyj's earnings presentation, Jul 18, 2025
Slide 1: Continued solid profitability in a challenging market environment
ANTTI SALMINEN, PRESIDENT & CEO PETRI CASTRÉN, CFO JULY 18, 2025 Continued solid profitability in a challenging market environment JANUARY – JUNE 2025
Slide 2: Agenda
Agenda Antti Salminen 1. Q2 2025 Highlights p. 3 President and CEO 2. Group revenue p. 5 3. Group profitability p. 6 4. Growth strategy update p. 7 5. Outlook for 2025 p. 8 Petri Castrén 6. Group profitability bridge p. 10 CFO 7. Net impact from sales prices and variable costs p. 11 8. Business unit
Slide 3: Highlights of Q2 2025
Highlights of Q2 2025 Market environment continues challenging • Organic growth -3% • Demand environment particularly challenging in Packaging & Hygiene Solutions • Outlook updated recently Good profitability level maintained • Operative EBITDA margin 19.0%, demonstrating the resiliency of Kemira’s
Slide 4: Excellent customer satisfaction and employee engagement
Excellent customer satisfaction and employee engagement NET PROMOTER SCORE EMPLOYEE ENGAGEMENT 65 80 59 in 2024 80 in 2024 All-time high Industry average 73 JULY 18, 2025 Q2 2025 RESULT PRESENTATION 4
Slide 5: Group revenue
Group revenue REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) Revenue declined in Q2 EUR million • Organic growth -3% mainly due to the 800 0% -9% -13% -9% 1% 2% 1% -2% -3% continued market softness 700 • Revenue declined in Packaging & Hygiene 600 Solutions and Water Solutions, remained 500 stable in F
Slide 6: Group profitability
Group profitability OPERATIVE EBITDA AND OPERATIVE EBITDA-% Operative EBITDA margin 19.0% EUR million • Operative EBITDA margin declined Y/Y, 160 21.6% 22.2% close to the Q1 level. 140 20.7% 20.3% 18.8% 19.2% 18.7% 19.1% 19.0% • The decline driven by lower revenue and 120 currency impact 100 80 149.
Slide 7: Growth strategy continues
Growth strategy continues Expanding sodium borohydride powder capacity in Finland • Investment less than EUR 10 million, supporting the globally growing pharma industry. Acquisition of Thatcher Group’s iron sulfate coagulant business in the US • Completed in the beginning of the quarter, annual reve
Slide 8: Outlook for 2025 (updated on July 10)
Outlook for 2025 (updated on July 10) OUTLOOK ASSUMPTIONS BEHIND THE OUTLOOK REVENUE • The continued global economic uncertainty is Kemira's revenue is expected to be between EUR expected to result in softer volume demand in 2,700 and EUR 2,950 million in 2025 Kemira's end-markets. (reported 2024 re
Slide 9: Agenda
Agenda Antti Salminen 1. Q2 2025 Highlights p. 3 President and CEO 2. Group revenue p. 5 3. Group profitability p. 6 4. Growth strategy continues p. 7 5. Outlook for 2025 p. 8 Petri Castrén 6. Group profitability bridge p. 10 CFO 7. Net impact from sales prices and variable costs p. 11 8. Business u
Slide 10: Q2 operative EBITDA bridge
Q2 operative EBITDA bridge Q2/2025 REVENUE AND ORGANIC GROWTH (Y-ON-Y) Organic revenue growth -3% EUR million 733 • Revenue declined in Packaging & Hygiene Solutions -16 -8 -20 4 693 and Water Solutions, and remained stable in Fiber Essentials. • Y/Y sales volumes and prices declined. Q/Q sales volu
Slide 11: Net impact from sales prices and variable costs
Net impact from sales prices and variable costs SALES PRICES AND VARIABLE COSTS (CHANGE Y-ON-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 24 28 25 16 28 15 62 70 16 66 9 5 -3 -2 47 42 37 2 -16 16 26 34 43 38 2 -23 -26 -10
Slide 12: Water Solutions
Water Solutions REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) Stable market environment EUR million 3% 5% Organic growth -2% 6% 0% -2% 350 14% 3% -2% 300 -2% • Y/Y increase in Urban EMEA, decrease in 250 Urban Americas and Industrial 200 150 288 291 271 296 321 329 311 304 309 • The decline mainly dri
Slide 13: Packaging & Hygiene Solutions
Packaging & Hygiene Solutions REVENUE AND REVENUE GROWTH* (Y-ON-Y) Challenging market environment EUR million • Further softening in market environment in APAC, -4% 0% 0% 300 0% -6% -7% some softening in EMEA and early signs of 250 recovery in Americas 200 150 Organic revenue growth -7% 269 256 265
Slide 14: Fiber Essentials
Fiber Essentials REVENUE AND REVENUE GROWTH* (Y-ON-Y) Market environment stable EUR million • Signs of increasing softness in the pulp 200 -6% -3% -3% 0% 3% industry 150 Organic revenue growth 3% 100 50 153 148 154 152 144 144 149 151 145 • Y/Y increase in sales prices, volumes flat 0 • Q/Q decrease
Slide 15: Balance sheet and ROCE
Balance sheet and ROCE NET DEBT (EUR million) AND LEVERAGE RATIO* OPERATIVE RETURN ON CAPITAL EMPLOYED 771 21.5% 22.4% 20.8% 20.6% 535 18.5% 16.2% 1.3 0.8 292 286 0.5 0.5 Dec 31 Dec 31 Dec 31 2024 Jun 30 2025 2022 2023 2023 O&G 2024 2024 O&G Q2 2025 2022 2023 divestment divestment adjusted adjusted
Slide 16: Cash flow generation
Cash flow generation ALL KEY FIGURES IN EUR MILLION CASH FLOW FROM OPERATIONS CAPITAL EXPENDITURE EXCL. ACQUISITIONS 546 6% 6% 6% 6% 485 97 401 98 198 205 188 42 143 34 167 133 43 115 109 20 3% 4% 58 207 58 42 173 112 173 146 119 61 71 255 25598 3% 165 55 97 114 106 133 109 81 64 -11 117 2022 61 202
Slide 17: Share buyback program to be launched
Share buyback program to be launched • The aim is to optimize Kemira’s capital structure and serve the interests of the company’s diverse shareholder base. • The maximum number of shares to be repurchased is 5,000,000, which is approximately 3.2% of the total number of shares. The maximum monetary a
Slide 18: Chemistry with a purpose. Better every day.
4 e mM | cra Chemistry with a purpose. Better every day.
Slide 19: Appendix
Appendix JULY 18, 2025 Q2 2025 RESULT PRESENTATION 19
Slide 20: Financial highlights of Q2 2025
Financial highlights of Q2 2025 EUR million Q2 Q2 H1 H1 (except ratios) 2025 2024 Δ% 2025 2024 Δ% 2024 Revenue 693.4 733.4 -5% 1,402.2 1,496.7 -6% 2,948.1 Revenue, O&G divestment 693.4 733.4 -5% 1,402.2 1,452.2 -3% 2,903.5 adjusted Operative EBITDA 131.8 140.5 -6% 267.3 303.0 -12% 585.4 of which mar
Slide 21: Kemira in brief
Kemira in brief LTM EXCL. OIL & GAS: REVENUE EUR 2,854 MILLION, OPERATIVE EBITDA EUR 550 MILLION, OPERATIVE EBITDA MARGIN 19.3%, OPERATIVE ROCE 18.5% BUSINESS UNITS GEOGRAPHIES PRODUCTS 20% 45% 10% 15% Other: e.g. Fiber Essentials Water APAC defoamers, dispersants, 25% Solutions 35% 1. China
Slide 22: 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 50% 25% 25% 279 15% 60% 1,400 Industrial Urban Urban 1,200 224 Other Coagulants 181 Americas** EMEA** 1,000 175 products 800 1,542 1,636 su
Slide 23: Packaging & Hygiene Solutions
Packaging & Hygiene Solutions REVENUE AND OPERATIVE EBITDA REVENUE BY CUSTOMER REVENUE BY EUR million, TYPE AND MARKET GROWTH PRODUCT CATEGORY historical figures for the new business unit 55% 10% 5% 5% Coagulants 1% Other 30 36 28 31 25% 300 31 24 31 30 Packaging & Printing & Tissue Pulp
Slide 24: Fiber Essentials
Fiber Essentials REVENUE AND OPERATIVE EBITDA REVENUE BY CUSTOMER REVENUE BY EUR million, TYPE AND MARKET GROWTH PRODUCT CATEGORY historical figures for the new business unit 15% 80 Others 250 100% Pulp 200 35 47 46 48 38 32 41 40 37 15% 150 55% 222 Caustic 100 Sodium Chlorate 153 148 154 15
Slide 25: Currency impact in Q2 2025
Currency impact in Q2 2025 KEMIRA REVENUE DISTRIBUTION IN 2024 • Main currency exposure comes via translation 6% Others impact 2% PLN 2% BRL • Transaction risk is limited as revenues and costs 45% EUR 2% SEK are typically in same currency due to local manufacturing. Transaction risk mostly
Slide 26: Key figures (reported)
Key figures (reported) Q2 Q1 Q4 Q3 Q2 2024 2023 EUR million 2025 2025 2024 2024 2024 Revenue 693.4 708.8 723.7 727.6 733.4 2,948.1 3,383.7 Operative EBITDA 131.8 135.5 135.0 147.4 140.5 585.4 666.7 margin 19.0% 19.1% 18.7% 20.3% 19.2% 19.9% 19.7% Operative EBIT 83.4 85.6 86.2 100.8 94.0 398.7 463.0
Slide 27: Key figures, Oil & Gas divestment adjusted
Key figures, Oil & Gas divestment adjusted Q2 Q1 Q4 Q3 Q2 EUR million 2025 2025 2024 2024 2024 2024 2023 Revenue 693.4 708.8 723.7 727.6 733.4 2,903.5 2,889.0 Operative EBITDA 131.8 135.5 135.0 147.4 140.5 582.1 595.9 margin 19.0% 19.1% 18.7% 20.3% 19.2% 20.0% 20.6% Operative EBIT 83.4 85.6 86.2 100
Slide 28: Cash flow
Cash flow EUR million Q2 2025 Q2 2024 2024 Net profit for the period 57.5 65.4 262.7 Total adjustments 69.7 71.0 312.9 Change in net working capital -38.5 4.0 28.5 Finance expenses -2.3 -3.9 -29.8 Income taxes paid -22.5 -27.2 -89.6 Net cash generated from operating activities 63.8 109.4 484.6 Purch
Slide 29: Water Solutions
Water Solutions KEY FINANCIALS EUR million Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 2024 2023 Revenue 308.6 303.8 311.3 328.6 321.0 1,301.4 1,635.5 Revenue, O&G divestment adjusted 308.6 303.8 311.3 328.6 321.0 1,256.9 1,140.9 Operative EBITDA 70.7 65.1 58.8 76.7 72.6 282.3 335.8 Margin 22.9% 21.4% 1
Slide 30: Packaging & Hygiene Solutions
Packaging & Hygiene Solutions KEY FINANCIALS EUR million Q2 Q1 Q4 Q3 Q2 2024 2023 2025 2025 2024 2024 2024 Revenue 240.3 253.7 263.9 254.8 268.5 1,058.5 1,072.0 Operative EBITDA 23.7 30.5 28.4 30.1 35.7 136.3 132.1 margin 9.9% 12.0% 10.8% 11.8% 13.3% 12.9% 12.3% Operative EBIT 9.4 13.9 12.5 15.4 20.
Slide 31: Fiber Essentials
Fiber Essentials KEY FINANCIALS EUR million Q2 Q1 Q4 Q3 Q2 2024 2023 2025 2025 2024 2024 2024 Revenue 144.5 151.2 148.5 144.1 143.9 588.2 676.1 Operative EBITDA 37.4 39.8 47.8 40.7 32.2 166.7 198.8 margin 25.9% 26.3% 32.2% 28.2% 22.4% 28.3% 29.4% Operative EBIT 22.5 24.7 32.5 25.6 17.8 107.7 142.5 m
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% JULY 18, 2025 Q2 2025 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: Kemira
Kemifa WWW.KEMIRA.COM