Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Q1 2024 Earnings Presentation
82 slides from Kemira Oyj's earnings presentation, Apr 26, 2024
Slide 1: Kemira Investor Presentation
APRIL 26, 2024 Kemira Investor Presentation Chemistry with a purpose. Better every day. INVESTOR PRESENTATION
Slide 2: Content
INVESTOR PRESENTATION Content 1. Kemira in brief 2. Investment highlights 3. Kemira as a sustainable investment 4. Pulp & Paper 5. Industry & Water 6. Recent progress 7. Appendix APRIL 26, 2024 INVESTOR PRESENTATION 2
Slide 3: Kemira in brief
INVESTOR PRESENTATION Kemira in brief APRIL 26, 2024 INVESTOR PRESENTATION 3
Slide 4: Kemira in brief
Kemira in brief LTM EXCL. OIL & GAS: REVENUE EUR 2,812 MILLION, OPERATIVE EBITDA EUR 586 MILLION, OPERATIVE EBITDA MARGIN 20.8%, OPERATIVE ROCE 21.6% SEGMENT SPLIT GEOGRAPHIES PRODUCTS 10% 15% Other: 40% 60% APAC e.g. defoamers, 25% Bleaching Industry & Water Pulp & Paper 35% 1. China disper
Slide 5: Kemira in your everyday
Kemira in your everyday COAGULANTS POLYMERS SIZING AND BLEACHING STRENGTH 30% 15% 15% 25% Important specialty chemical in Main water treatment chemical, Important water treatment pulp & paper, used to improve Critical product in pulp & paper, used to coagulate impurities in chemical, used to separat
Slide 6: Global reach – local excellence
Global reach – local excellence 57 MANUFACTURING SITES KEMIRA HQ Helsinki, Finland R&D Regional HQ Espoo, Finland Atlanta, USA Regional HQ Shanghai, China R&D Atlanta, USA R&D Shanghai, China EMEA 55% ASIA PACIFIC 10% 2,500 AMERICAS 35% 900 UNITS IN AROUND 40 COUNTRIES 1,200 SALES IN OVER 100+ COUNT
Slide 7: Superior transformation into a water-focused company
Superior transformation into a water- focused company 1950 1961 1972 1985-1992 1994 2008 2015 2023 Development of Name changed The “Kemira” Expansion Kemira is listed on Water chemistry Acquisition of Strategic review first chemicals for to Rikkihappo Oy name adopted continues in the Helsinki stock
Slide 8: Pulp & Paper – strong business with solid track record
Pulp & Paper – strong business with solid track record REVENUE AND OPERATIVE EBITDA REVENUE BY CUSTOMER REVENUE BY EUR million TYPE AND MARKET GROWTH PRODUCT CATEGORY 2,200 348 40% 45% 15% 1% Other 331 2,000 Pulp Board & Printing & 40% 1,800 260 tissue writing papers 10% Bleaching 245 Po
Slide 9: Industry & Water – strong market positions
Industry & Water – strong market positions REVENUE AND OPERATIVE EBITDA REVENUE BY APPLICATION REVENUE BY EUR million TYPE AND MARKET GROWTH PRODUCT CATEGORY 1,800 336 1,600 90% 10% 15% 60% 1,400 1,200 224 Water treatment Other Other Coagulants 192 175 181 products 1,000 Municipal Industrial
Slide 10: Investment highlights
INVESTOR PRESENTATION Investment highlights APRIL 26, 2024 INVESTOR PRESENTATION 10
Slide 11: Why invest in Kemira
Why invest in Kemira ATTRACTIVE BUSINESS MODEL STRONG FINANCIAL PROFILE Resilient business model combined with Record-strong balance sheet strong market positions • Net debt / operative EBITDA 0.8 • #1 or #2 positions in P&P and water treatment Excellent profitability improvement track record Sustai
Slide 12: Global megatrends largely favor Kemira
Global megatrends largely favor Kemira – sustainability becoming a key driver for the long term CHANGING GROWING DEMOGRAPHICS ENVIRONMENTAL AWARENESS Growing Changing More efficient use Focus on Tightening Climate change middle-class lifestyles with of scarce natural renewable and environmental miti
Slide 13: Healthy market growth for Kemira's relevant markets
Healthy market growth for Kemira’s relevant markets KEMIRA RELEVANT MARKET PULP & PAPER RELEVANT MARKET EUR billion EUR billion 1-2% 11.1 11.8 2-3% 40.8 35.1 APAC 2023 2028 Packaging & Printing & Pulp Tissue Writing EMEA INDUSTRY & WATER RELEVANT MARKET EUR billion 3-5% 29.0 24.0 Americas 2023 2028
Slide 14: Strong profitability improvement track record
Strong profitability improvement track record REVENUE Revenue OPERATIVE EBITDA EUR million declined due OPERATIVE EBITDA MARGIN to COVID-19 pandemic EUR million 667 19.7% 3,570 +5.2% 3,384 +11.3% 572 CAGR 16.0% CAGR 17.9% 2,674 426 2,593 2,659 410 15.9% 2,486 2,427 435 2,373 2,363 15.4% 2,137 323 30
Slide 15: Profitable growth is at the heart of our strategy
Profitable growth is at the heart of our strategy FASTER-THAN-MARKET GROWTH GROWTH POCKETS NEW OPPORTUNITIES M&A INSIDE EXISTING BUSINESSES STRONG FOUNDATION AND ROBUST EXISTING BUSINESSES APRIL 26, 2024 INVESTOR PRESENTATION 15
Slide 16: We have three strategic priorities
We have three strategic priorities EXPAND IN WATER BUILD A LEADING CREATE A SIGNIFICANT Significantly grow our water RENEWABLE DIGITAL SERVICES business by expanding to SOLUTIONS PORTFOLIO* BUSINESS additional technologies and/or Enable sustainability Strengthen our value add for geographies both or
Slide 17: We want to grow in water-related applications
We want to grow in water-related applications Growth focus SEGMENT PULP & PAPER INDUSTRY & WATER Board Printing Water Customer segment Pulp &Tissue & Writing treatment % of total sales* ~25% ~25% ~10% ~30% Sustainability relevance Capex intensity M&A relevance Role in the Kemi
Slide 18: Our path towards 500 MEUR renewable solutions revenue target
Our path towards 500 MEUR renewable solutions revenue target advances via 4 tracks CURRENT 1. PORTFOLIO Boost the sales of commercially available renewable solutions Convert current products to renewable solutions through a 2. PRODUCT CONVERSION change of raw material and feedstock New products base
Slide 19: Kemira as a sustainable investment
INVESTOR PRESENTATION Kemira as a sustainable investment APRIL 26, 2024 INVESTOR PRESENTATION 19
Slide 20: 59% of revenue from products that improve customer resource efficiency
59% of revenue generated from products that improve customer resource efficiency PULP & PAPER INDUSTRY & WATER Kemira’s products improve the manufacturing process Municipal and industrial and enable better resource-efficiency. water treatment: For example Chemical water treatment provides the most c
Slide 21: We use significant amounts of recycled raw materials
We use significant amounts of recycled raw materials Already 47% up to of current raw materials 70-80% from recycled & renewable of raw materials from sources recycled sources in coagulants APRIL 26, 2024 INVESTOR PRESENTATION 21
Slide 22: Customer behavior is changing with an increased focus on sustainability
SUSTAINABILITY WILL BE A KEY DRIVER FOR FUTURE GROWTH Customer behavior TO SUPPORT OUR CUSTOMERS IN is changing with an THE SHIFT TOWARDS HIGHER SUSTAINABILITY, WE WILL: increased focus on Address growing recyclability and biodegradability demand for products sustainability Gradually transform our p
Slide 23: We want to ensure profitable growth
FROM BASELINE TARGET REVENUE REVENUE IN 2020 IN 2030 ~180 >500 We want MEUR MEUR to ensure FROM RENEWABLE FROM RENEWABLE SOLUTIONS SOLUTIONS profitable growth FROM BASELINE SHARE IN 2020 TARGET SHARE IN 2030 BY BECOMING THE LEADING PROVIDER OF SUSTAINABLE CHEMICAL SOLUTIONS 13%* 40% FOR WATER-INTENS
Slide 24: We already have a significant number of renewable solutions
CURRENT PO RT FO LIO We already have a significant number of renewable solutions in our portfolio REVENUE SPLIT BY TYPE IN 2023 RENEWABLE SOLUTIONS REVENUE DEVELOPMENT Renewable Revenue declined solutions (> 50%) due to lower market Does not contain prics for renewable Partly renewable sizing produc
Slide 25: Strong commitment to sustainability
Strong commitment to sustainability Five sustainability KPIS SAFETY TRIF* 1.5 by the end of 2025 and 1.1 by the end of CLIMATE WATER 2030 PEOPLE Reach top 10% cross industry norm for Glint Chemical sector average Inclusion index by the end of 2025 Chemical Chemical WATER Reach Leadership level (A-/A
Slide 26: We have committed to the Science Based Targets Initiative (SBTi)
We have committed to the Science Based Targets Initiative (SBTi) • Kemira committed to the Science Based Target initiative (SBTi)* in June 2022. • Commitment to cut 50% of emissions from our own operations and energy use (Scope 1 and 2 emissions**) by the end of 2030, compared to a 2018 baseline. Th
Slide 27: How we are reducing our emissions
How we are reducing our emissions SCOPE ■1 & ■2 EMISSIONS 1,000 TONNES CO2eq SCOPE 1 & 2 EMISSIONS -33% Scope 1: 930 -50% • energy efficiency improvements 152 by 2030 625 Scope 2: 137 461 778 • energy efficiency improvements 488 • sourcing emission-free energy: nuclear energy from Olkiluoto 3, less
Slide 28: Sustainability performance in 2023
Sustainability performance in 2023 1/2 Kemira's sustainability work covers economical, SDG KEY FIGURE UNIT 2023 environmental and social topics and is guided by the SAFETY TRIF* 1.5 by the end of 2025 and 1.1 by the end of UN Sustainable Development Goals (SDGs). 2030 2.5 *TRIF = total recordable in
Slide 29: Sustainability performance in Q1 2024
Sustainability performance in Q1 2024 2/2 SAFETY TRIF* in January-March 2024 was 4.5 (1-3/2023: 2.5). Kemira has started a global safety training program focusing on safety-critical elements and employee behavior to turn the negative TRIF trend. PEOPLE Kemira's target is to reach the top 10% cross-i
Slide 30: Pulp & Paper
INVESTOR PRESENTATION Pulp & Paper Driving growth as market leader APRIL 26, 2024 INVESTOR PRESENTATION 30
Slide 31: Pulp & Paper chemicals market estimated to grow 1-2%
Pulp & Paper chemicals market estimated to grow 1-2% REVENUE AND OPERATIVE EBITDA • Pulp & Paper chemicals market drivers EUR million 2,200 348 – Hardwood and softwood pulp demand increasing 2,000 331 driven by growth of packaging needs (e-commerce, 1,800 260 245 non-plastic solutions), growing tiss
Slide 32: Pulp & Paper: technology and market leader
Pulp & Paper TECHNOLOGY AND MARKET LEADER RAW CUSTOMER INTERMEDIATES PRODUCTS APPLICATIONS CUSTOMERS MATERIALS INDUSTRIES Electricity Tall oil rosin Sodium chlorate Pulping Pulp All the major global Sodium chloride AKD Wax Hydrogen peroxide Bleaching Packaging paper (salt) and board and pulp produce
Slide 33: We have a strong position particularly in EMEA
We have a strong position particularly in EMEA PULP PACKAGING & TISSUE PRINTING & WRITING EMEA Market position #1/2 #1/2 #1/2 North America Market position #3/4 #3 #2/3 APAC Market position n.a. #1/2 #1/2 South America Market position #2 #2/3 #2/3 APRIL 26, 2024 INVESTOR PRESENTATION Source: Kemira
Slide 34: Pulp and packaging markets are growing driven by sustainability trends
Pulp and packaging markets are growing driven by sustainability trends PULP & BLEACHING MARKET BOARD AND TISSUE MARKET Demand for virgin fiber increasing due to decline Packaging market growth drivers: APAC, online retail in availability of recycled fiber and growing uses of and move away from plast
Slide 35: We are transforming our portfolio more towards renewable solutions
We are transforming our portfolio more towards renewable solutions C U S T O M E R S S E E K I N G A D D E D VA L U E WE WILL BECOME THE LEADING F R O M S U S TA I N A B I L I T Y A N D P R O V I D E R O F S U S TA I N A B L E B I O M AT E R I A L S C H E M I C A L S O L U T I O N S F O R W AT E R -
Slide 36: Barrier market projected to grow by 5% p.a. to 2028
NEW G RO W TH O PPO RT UNIT IES Barrier market projected to grow by 5% p.a. to 2028 MARKET DRIVERS KEMIRA HAS A STRONG POSITION Consumer preference for sustainable solutions Kemira’s first generation, partly renewable, barrier, commercialized; second generation renewable solution Transition towards
Slide 37: The wood-fiber textile market projected to reach EUR 10 billion by 2030
NEW G RO W TH O PPO RT UNIT IES The wood-fiber textile market projected to reach EUR 10 billion by 2030 TEXTILE MARKET IN TRANSFORMATION Demand for novel sustainable fiber solutions in textiles is high in order to replace cotton and synthetic fibers EUR More than 96% of global EUR 200 billion textil
Slide 38: Services offering is a valuable differentiator
NEW G RO W TH O PPO RT UNIT IES Services offering is a valuable differentiator • Aim to create a significant digital services business, 2022 revenue was around EUR 5 million • New dedicated service organization established to accelerate growth in services COLLABORATION • Commitment to invest in expa
Slide 39: We are competitively positioned in the growing fiber-based applications
We are 100 YEARS OF BROADEST PULP & EXPERTISE IN FIBER PAPER CHEMICAL WATER CHEMISTRY PRODUCT PORTFOLIO competitively IN THE WORLD positioned in the growing fiber- based applications LONG ESTABLISHED BROAD CAPABILITIES CUSTOMER TO SERVE CUSTOMERS RELATIONSHIPS ACROSS THE GLOBE APRIL 26, 2024 INVESTO
Slide 40: Industry & Water
INVESTOR PRESENTATION Industry & Water Stronger platform for profitable growth APRIL 26, 2024 INVESTOR PRESENTATION 40
Slide 41: Industry & Water relevant chemicals market estimated to grow 4-5%
Industry & Water relevant chemicals market estimated to grow 4-5% REVENUE AND OPERATIVE EBITDA EUR million 1,800 1,600 336 • Demand for water treatment chemicals 1,400 1,200 224 expected to increase due to 192 175 181 1,000 800 114 131 1,542 1,635 – Higher demand for water driven by 107 600 906 1,00
Slide 42: Industry & Water: technology and market leader in water treatment
Industry & Water TECHNOLOGY AND MARKET LEADER IN WATER TREATMENT AS WELL AS IN NICHE APPLICATIONS IN OIL & GAS RAW INTERMEDIATES PRODUCTS APPLICATIONS SALES CHANNELS CUSTOMERS MATERIALS Acrylonitrile Acrylamide Polymers Raw water & waste Direct sales Municipalities (EPAM, DPAM) water treatment Acryl
Slide 43: We have strong positions particularly in EMEA water treatment
We have strong positions particularly in EMEA water treatment MARKET POSITION MARKET OUTLOOK EMEA Water treatment1,2) #1 NORTH AMERICA Water treatment1) #2 APAC Water treatment2) Top 10 APRIL 26, 2024 INVESTOR PRESENTATION I&W main product lines 1) Coagulants 2) Polymers 43
Slide 44: Trends in water treatment provide solid opportunities for sustainable growth
Trends in water treatment provide solid opportunities for sustainable growth Relevant water treatment Relevant market trend and products & solutions market expected growth EUR billion Energy efficiency in water treatment CAGR 4-5% 14.6 8-9% processes Phosphorous recovery and reuse 6-7% regulations a
Slide 45: We are accelerating our investments in water
We are accelerating our investments in water Relevant market trend and expected I&W strategic growth road map in execution growth Building a digital platform through selective Energy efficiency in water expansions and acquisitions Accelerated 8-9% “Deploying our strong customer base to scale up digi
Slide 46: Water treatment customers focus increasingly on sustainability
Water treatment customers focus increasingly on sustainability • Consumers increasingly aware of sustainability issues • Water treatment customers increasingly focused on reducing CO2 footprint • Kemira survey shows customers are willing to pay a premium for renewable solutions • Micropollutant remo
Slide 47: Kemira's six actions for cleaner waters in EMEA
Kemira’s six actions 1. The requirements of the Urban Wastewater Treatment Directive (UWWTD) must be implemented fully and equally in all member for cleaner states. 2. Emission limit values (especially phosphorus) in water discharges should be tightened. waters 3. Digitalization can improve both the
Slide 48: Regulation continues to support growth in European water treatment market
Regulation continues to support growth in European water treatment market Regulation under update Comments & Implications Urban • Basis for wastewater treatment business in Europe Wastewater • Target to better enforce existing legislation in all countries Treatment Directive • Other potential improv
Slide 49: Latest news and financials
INVESTOR PRESENTATION Latest news and financials APRIL 26, 2024 INVESTOR PRESENTATION 49
Slide 50: Kemira has an excellent foundation for future growth
Kemira has an excellent foundation for future growth CUSTOMER EMPLOYEE SATISFACTION (NPS*) ENGAGEMENT Strong financial profile and track record 57 80 • Strong profitability, record-strong balance sheet and good 71 cash flow generation • Improved margin structure and capital efficiency as well as 33
Slide 51: Highlights of Q1 2024
Highlights of Q1 2024 • New Management Board started; annual strategy review ongoing • Strong start to the year with a focused portfolio • Kemira closed the divestment of its Oil & Gas business on February 2, 2024. The benefits of the Oil & Gas divestment visible in strong Q1 2024 financial performa
Slide 52: Financial highlights of Q1 2024
Financial highlights of Q1 2024 Revenue EUR million Q1 Q1 Δ% 2023 • Year-on-year and sequential volume growth (except ratios) 2024 2023 following a gradual market recovery Revenue 763.3 906.0 -16% 3,383.7 • Organic revenue growth -9% in Q1 2024 as sales prices for energy-intensive pulp and bleaching
Slide 53: Pulp & Paper: Continued sequential volume growth; margin strong at 20.9%
Pulp & Paper: Continued sequential volume growth; margin strong at 20.9% Market environment in Q1 2024 REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) EUR million • Gradual market recovery continued in Q1 2024 in all 537 556 505 488 geographic regions and product groups 447 421 404 419 423 • Political s
Slide 54: Industry & Water: Strong quarter; Oil & Gas adjusted ROCE over 35%
Industry & Water: Strong quarter; Oil & Gas adjusted ROCE over 35% Market environment in Q1 2024 REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) EUR million • Solid demand in both municipal and industrial water 435 412 419 425 treatment market 374 402 390 322 340 291 296 Organic revenue growth Q1 2024:
Slide 55: Kemira's strategic priorities remain unchanged
Kemira’s strategic priorities remain unchanged – now focus is on accelerated execution WATER TREATMENT REVENUE RENEWABLE SOLUTIONS DIGITAL SERVICES REVENUE DEVELOPMENT REVENUE DEVELOPMENT DEVELOPMENT* MEUR MEUR % of revenue 2,000 500 5 400 4 1,500 300 3 1,000 200 2 500 100 1 0 0 0 2020 2021 2022 202
Slide 56: Financials Q1 2024
PETRI CASTRÉN CFO Financials Q1 2024 APRIL 26, 2024 INVESTOR PRESENTATION 56
Slide 57: Margin stable y-o-y at a record-high level
Margin stable y-o-y at a record-high level Q1/2024 REVENUE AND ORGANIC GROWTH (Y-ON-Y) Organic revenue growth -9% in Q1 2024 EUR million • Sales prices declined as market prices for energy-intensive 906 pulp and bleaching chemicals declined from elevated levels in -9% 1% -9% 763 Q1 2023. Excluding p
Slide 58: We operate in resilient end-markets
We operate in resilient end-markets KEMIRA’S SALES VOLUME DEVELOPMENT 2016-Q1 2024 (excl. Oil & Gas) 12 month rolling % change y-o-y 20 The impact of the Russia 15 exit and historic downturn in Pulp & Paper market visible 10 in sales volume development in 2022-2023 5 0 -5 -10 -15 -20 2016 2017 2018
Slide 59: Variable costs decline stabilizing
Variable costs decline stabilizing SALES PRICE VS VARIABLE COST TREND SALES PRICES AND VARIABLE COSTS (ROLLING 12-MONTH CHANGE Y-O-Y) (CHANGE Y-O-Y) EUR million EUR million 300 1000 900 269 250 256 800 200 700 188197 600 129174 150 152 500 138 14199 122 68 64 100 400 47 42 37 97 59 13 26 34 300 28 3
Slide 60: Record-strong balance sheet
Record-strong balance sheet NET DEBT (EUR million) AND LEVERAGE RATIO* 850 • Balance sheet further strengthened during the quarter 771 due to the proceeds from the Oil & Gas divestment 535 376 • Gearing 23% (32% in Q4 2023) - well below the 2.0 1.3 0.8 financial target range of below 75% 0.6 • Net d
Slide 61: Strong cash flow in a typically lower quarter
Strong cash flow in a typically lower quarter ALL KEY FIGURES IN EUR MILLION CASH FLOW FROM OPERATIONS • Strong cash flow during the quarter; rather stable net 546 working capital 97 Q1 401 133 • Supplementary pension fund Neliapila returned excess 42 Q2 115 143 funds of around EUR 12 million during
Slide 62: Outlook for 2024 (unchanged)
Outlook for 2024 (unchanged) OUTLOOK ASSUMPTIONS BEHIND THE OUTLOOK (SPECIFIED) REVENUE • Kemira’s end-market demand (in volumes) is expected to Kemira’s revenue in local currencies, excluding grow slightly in 2024 following expected gradual demand acquisitions and divestments, is expected to be rec
Slide 63: Save the date!
SAVE THE DATE! Kemira will hold a Capital Markets Day during the afternoon of Thursday September 26, 2024. The CMD will be held physically in Helsinki, Finland. The event can also be followed via a live webcast. Save the date in your calendar; a formal invitation to follow. APRIL 26, 2024 INVESTOR P
Slide 64: Kemira's cost structure and top raw materials
Kemira’s cost structure and top raw materials DIRECT PURCHASES AND EXPOSURE TO OIL RELATED TOP 12 RAW MATERIALS LOGISTICS COSTS 2023 RAW MATERIALS BY SPEND (around 50% of total EUR 1.8 billion raw material spend) 66% 34% 1. Acrylonitrile (OD) 20% Not oil Oil & gas 2. Sodium hydroxide (caustic
Slide 65: Cost structure and top raw materials excluding O&G
Kemira’s cost structure and top raw materials excluding O&G DIRECT PURCHASES AND EXPOSURE TO OIL RELATED TOP 12 RAW MATERIALS LOGISTICS COSTS 2023 RAW MATERIALS BY SPEND (around 50% of total EUR 1.6 billion raw material spend) 75% 25% 1. Sodium hydroxide (caustic soda)* 21% Not oil Oil & gas 2
Slide 66: Kemira has a diversified financing base
Kemira has a diversified financing base 13% GROSS DEBT END OF MARCH 2024 EUR 948 MILLION, MATURITY PROFILE EXCLUDING LEASES Leases 127 million 450 12% 400 400 Other EUR 115 million 42%Bond 350 300 298 EUR 400 million 250 193 200 200 150 120 100 33% 50 16 0 2024 2025 2026 2027 2028 Loans from banks a
Slide 67: Majority of contracts with fixed annual pricing
Majority of contracts with fixed annual pricing Pulp & Paper – Contract types and pricing terms* • Length – Around 95% of contracts are 1-year or longer / only 5% are spot deals • Pricing – Around 65% fixed / 35% formula or spot pricing Industry & Water – Contract types and pricing terms* • Length –
Slide 68: Kemira aims to pay an attractive dividend
Kemira aims to pay an attractive dividend KEMIRA’S DIVIDEND POLICY Competitive and over-time increasing dividend No fixed payout ratio We have a solid dividend track record 0.68* Dividend per share Dividend yield 0.62 0.58 0.58 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.56 5.8% 5.4% 5.4% 4.5% 4.9
Slide 69: Appendix
INVESTOR PRESENTATION Appendix APRIL 26, 2024 INVESTOR PRESENTATION 69
Slide 70: Very limited currency impact in Q1 2024
Very limited currency impact in Q1 2024 KEMIRA REVENUE DISTRIBUTION IN 2023 • Main currency exposure comes via translation 5% Others impact 2% PLN 40% EUR • Transaction risk is limited as revenues and costs 2% BRL are typically in same currency due to local 2% SEK manufacturing. Transactio
Slide 71: Key figures (reported)
Key figures (reported) EUR million Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2023 2022 Revenue 763.3 808.8 828.7 840.1 906.0 3,383.7 3,569.6 Operative EBITDA 162.5 162.7 160.3 151.0 192.6 666.7 571.6 margin 21.3% 20.1% 19.3% 18.0% 21.3% 19.7% 16.0% Operative EBIT 117.6 112.6 107.6 100.9 141.9 463.0 36
Slide 72: Key figures, Oil & Gas divestment adjusted
Key figures, Oil & Gas divestment adjusted EUR million Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2023 2022 Revenue 718.8 690.2 694.3 709.1 795.6 2,889.0 3,141.1 Operative EBITDA 159.2 149.3 143.8 133.3 169.4 595.9 518.3 margin 22.2% 21.6% 20.7% 18.8% 21.3% 20.6% 16.5% Operative EBIT 114.4 103.7 97.8 8
Slide 73: Cash flow
Cash flow EUR million Q1 2024 Q1 2023 2023 Net profit for the period 79.0 95.4 211.3 Total adjustments 81.3 98.5 429.4 Change in net working capital -9.3 -50.8 14.9 Finance expenses -15.2 2.4 -18.8 Income taxes paid -38.2 -48.8 -90.8 Net cash generated from operating activities 97.7 96.7 546.0 Capit
Slide 74: Pulp & Paper key financials
Pulp & Paper KEY FINANCIALS EUR million Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2023 2022 Revenue 422.9 418.8 403.6 421.2 504.6 1,748.2 2,027.7 Operative EBITDA 88.2 87.5 68.9 65.2 109.4 330.9 348.0 margin 20.9 20.9% 17.1% 15.5% 21.7% 18.9% 17.2% Operative EBIT 59.8 58.6 39.8 37.6 80.4 193.4 225.7 m
Slide 75: Industry & Water key financials
Industry & Water KEY FINANCIALS EUR million Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2023 2022 Revenue 340.5 390.0 425.1 418.9 401.5 1,635.5 1,541.9 Revenue, O&G divestment adjusted 295.9 271.4 290.7 287.9 291.0 1,140.9 1 113,40 Operative EBITDA 74.3 75.2 91.5 85.8 83.3 335.8 223.7 margin 21.8% 19.3%
Slide 76: Key figures and ratios – 5-year summary
Key figures and ratios – 5-year summary EUR million (except ratios) 2019 2020 2021 2022 2023 Revenue 2,658.8 2,427.2 2,674.4 3,569.6 3,383.7 Operative EBITDA 410.0 435.1 425.5 571.6 666.7 of which margin 15.4% 17.9% 15.9% 16.0% 19.7 Operative EBIT 224.0 237.7 225.4 361.6 463.0 of which margin 8.4% 9
Slide 77: Per share figures – 5-year summary
Per share figures – 5-year summary 2023 2022 2021 2020 2019 Earnings per share, EUR (diluted) 1.28 1.50 0.70 0.86 0.72 Cash flow from operating activities per 3.56 2.61 1.44 2.45 2.53 share, EUR Equity per share, EUR 10.84 10.89 8.68 7.80 7.98 Dividend per share, EUR 0.68 0.62 0.58 0.58 0.56 Share p
Slide 78: Revenue split by country
Revenue split by country FY 2023 Other APAC 5% China 4% Other EMEA 8% USA 30% Belgium 2% Netherlands 2% France 2% Spain 2% Italy 2% Poland 3% UK 4% Canada 9% Germany 4% Brazil 2% Sweden 6% Other Americas 3% Finland 13% APRIL 26, 2024 INVESTOR PRESENTATION 78
Slide 79: Largest shareholders and Board of Directors
Kemira – largest shareholders and Board of Directors SHAREHOLDERS ON MARCH 31, 2024 KEMIRA BOARD OF DIRECTORS MATTI TIMO % OF SHARES KÄHKÖNEN LAPPALAINEN 1. Oras Invest 22.6% Chair Member since Member since 2014 2. Varma Mutual Pension Insurance Company 3.7% 2021 ANNIKA FERNANDA 3. Nordea Funds 3.4%
Slide 80: Kemira's Management Board
Kemira’s Management Board ANTTI SALMINEN TUIJA POHJOLAINEN- LINUS HILDEBRANDT President & CEO HILTUNEN EVP, Strategy with Kemira since 2011 President with Kemira since 2023 Industry & Water with Kemira since 2008 PETRI CASTRÉN MATTHEW PIXTON EEVA SALONEN CFO CTO EVP, Human Resources with Kemira sinc
Slide 81: 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 82: Chemistry with a purpose. Better every day.
4 e mM | cra Chemistry with a purpose. Better every day.