Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Kemira Oyj Ord — Q1 2025 Earnings Presentation
32 slides from Kemira Oyj's earnings presentation, Apr 25, 2025
Slide 1: Solid profitability in a softer market environment
ANTTI SALMINEN, PRESIDENT & CEO PETRI CASTRÉN, CFO APRIL 25, 2025 Solid profitability in a softer market environment JANUARY – MARCH 2025
Slide 2: Highlights of Q1 2025
Highlights of Q1 2025 Market uncertainty increased – Kemira’s local business model resilient to economic cycles and tariffs Solid profitability in a softer market environment • Organic growth -2% reflecting softer demand environment • Operative EBITDA margin solid at 19.1% within our financial targe
Slide 3: Financial highlights of Q1 2025
Financial highlights of Q1 2025 EUR million Q1 Q1 Slight organic revenue decline in Q1 2025 (except ratios) 2025 2024 Δ% 2024 • Organic growth -2%, stable revenue development in Revenue 708.8 763.3 -8% 2,948.1 Water Solutions and Fiber Essentials. Negative organic growth in Packaging & Hygiene Solut
Slide 4: Water Solutions: Strong profitability, steady demand
Water Solutions: Strong profitability, steady demand REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y) EUR million Market environment 5% 3% 6% 0% 350 24% 14% 3% -2% -2% • Market continued to grow slightly in all regions 300 250 Organic revenue growth stable due to lower contract 200 manufacturing 150 291
Slide 5: Packaging & Hygiene Solutions: End-market demand remained soft
Packaging & Hygiene Solutions: End-market demand remained soft REVENUE AND REVENUE GROWTH* (Y-ON-Y) EUR million Market environment 300 -4% 0% 0% 0% -6% • Market environment remained soft in APAC and 250 China 200 150 283 269 256 265 271 269 264 • Market activity slowed down in North America 100 255
Slide 6: Fiber Essentials: Solid overall performance
Fiber Essentials: Solid overall performance REVENUE AND REVENUE GROWTH* (Y-ON-Y) EUR million Market environment 250 • Soft market environment continued in bleaching -32% -6% -3% -3% 0% chemicals following softness in packaging demand 200 150 Organic revenue growth stable 222 100 153 154 152 151 • Sa
Slide 7: Joint venture with IFF to produce biobased materials at scale
Joint venture with IFF to produce biobased materials at scale • New-to-the-world renewable polymer offering building on Kemira’s and IFF’s long-term partnership • Aim to replace fossil-based equivalents in several applications, such as packaging and water treatment • Completely biobased with plant-b
Slide 8: Further growth steps taken this year
Further growth steps taken this year Acquisition of Thatcher Group’s iron sulfate coagulant business in the US • Bolt-on acquisition expanding the water business on the East Coast of the United States, good fit with Kemira’s existing operational network • Annual revenue less than USD 10 million Expa
Slide 9: 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 10: Financials Q1 2025
PETRI CASTRÉN CFO Financials Q1 2025 APRIL 25, 2025 Q1 2025 RESULT PRESENTATION 10
Slide 11: Q1 operative EBITDA margin 19.1%
Q1 operative EBITDA margin 19.1% Q1/2025 REVENUE AND ORGANIC GROWTH (Y-ON-Y) Organic revenue growth of -2% EUR million • Stable organic growth in Water Solutions and Fiber 763 -45 719 709 Essentials partly offsetting revenue decline of * -3 -17 3 6 Packaging & Hygiene Solutions • Sales volumes were
Slide 12: Negative net impact from sales prices and variable costs
Negative 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 24 28 25 16 28 15 62 70 16 66 9 5 -3 -2 47 42 2 -16 16 26 37 34 43 38 -23 -2
Slide 13: Strong balance sheet and ROCE
Strong balance sheet and ROCE NET DEBT (EUR million) AND LEVERAGE RATIO* 771 • Balance sheet continues to be very strong 535 • Gearing 13% (23% in Q1 2024) 1.3 292 • Net debt / operative EBITDA at a record-strong level 0.8 216 of 0.4 0.5 0.4 • Average interest rate of net debt excluding leases Dec 3
Slide 14: Solid cash flow generation
Solid cash flow generation ALL KEY FIGURES IN EUR MILLION • Solid cash flow of MEUR 55.0 in seasonally slower quarter. CASH FLOW FROM OPERATIONS Deline from high comparison period Q1 2024. Net working 546 485 capital increased compared to the end of year 2024. 97 401 42 143 98 133 • Supplementary pe
Slide 15: Resilient business model brings stability in an uncertain market environment
Resilient business model brings stability in an uncertain market environment EXPECTED IMPACTS OF A POSSIBLE TRADE WAR Direct impacts limited • Resilient business model with mostly local production for local customers • All trade flows, including sales and raw material purchases, into the US from oth
Slide 16: Outlook for 2025 unchanged
Outlook for 2025 unchanged OUTLOOK ASSUMPTIONS FOR 2025 (SPECIFIED) REVENUE Kemira’s revenue in local currencies, excluding • The increased global economic uncertainty is expected to result in softer volume demand in acquisitions and divestments, is expected to be Kemira's end-markets. The uncertain
Slide 17: Chemistry with a purpose. Better every day.
4 e mM | cra Chemistry with a purpose. Better every day.
Slide 18: Appendix
Appendix APRIL 25, 2025 Q1 2025 RESULT PRESENTATION 18
Slide 19: Kemira in brief
Kemira in brief LTM EXCL. OIL & GAS: REVENUE EUR 2,894 MILLION, OPERATIVE EBITDA EUR 558 MILLION, OPERATIVE EBITDA MARGIN 19.3%, OPERATIVE ROCE 19.1% BUSINESS UNITS GEOGRAPHIES PRODUCTS 20% 10% 15% Other: 45% APAC Fiber Essentials e.g. defoamers, 25% Bleaching Water 35% 1. China dispersants,
Slide 20: 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 1,000 175 181 Americas** EMEA** products 800 1,542 1,636 su
Slide 21: 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 1% Other 55% 25% 10% 5% 30 31 36 28 31 5% 300 31 Packaging & Printing &Tissue Pulp 41 42 30 Coagulan
Slide 22: 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 80 100% 15% 250 Pulp Others 200 35 47 46 48 150 38 32 41 40 15% Caustic 55% 222 100 Soda Sodium Chlorate 153 148 154
Slide 23: Very limited currency impact in Q1 2025
Very limited currency impact in Q1 2025 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. Transactio
Slide 24: Key figures (reported)
Key figures (reported) Q1 Q4 Q3 Q2 Q1 2024 2023 EUR million 2025 2024 2024 2024 2024 Revenue 708.8 723.7 727.6 733.4 763.3 2,948.1 3,383.7 Operative EBITDA 135.5 135.0 147.4 140.5 162.5 585.4 666.7 margin 19.1% 18.7% 20.3% 19.2% 21.3% 19.9% 19.7% Operative EBIT 85.6 86.2 100.8 94.0 117.6 398.7 463.0
Slide 25: Key figures, Oil & Gas divestment adjusted
Key figures, Oil & Gas divestment adjusted Q1 Q4 Q3 Q2 Q1 EUR million 2025 2024 2024 2024 2024 2024 2023 Revenue 708.8 723.7 727.6 733.4 718.8 2,903.5 2,889.0 Operative EBITDA 135.5 135.0 147.4 140.5 159.2 582.1 595.9 margin 19.1% 18.7% 20.3% 19.2% 22.2% 20.0% 20.6% Operative EBIT 85.6 86.2 100.8 94
Slide 26: Cash flow
Cash flow EUR million Q1 2025 Q1 2024 2024 Net profit for the period 61.7 79.0 262.7 Total adjustments 70.3 81.3 312.9 Change in net working capital -40.7 -9.3 28.5 Finance expenses -6.9 -15.2 -29.8 Income taxes paid -29.4 -38.2 -89.6 Net cash generated from operating activities 55.0 97.7 484.6 Purc
Slide 27: Water Solutions
Water Solutions KEY FINANCIALS EUR million Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 2024 2023 Revenue 303.8 311.3 328.6 321.0 340.5 1,301.4 1,635.5 Revenue, O&G divestment adjusted 303.8 311.3 328.6 321.0 295.9 1,256.9 1,140.9 Operative EBITDA 65.1 58.8 76.7 72.6 74.3 282.3 335.8 Margin 21.4% 18.9% 2
Slide 28: Packaging & Hygiene Solutions
Packaging & Hygiene Solutions KEY FINANCIALS EUR million Q1 Q4 Q3 Q2 Q1 2024 2023 2025 2024 2024 2024 2024 Revenue 253.7 263.9 254.8 268.5 271.1 1,058.5 1,072.0 Operative EBITDA 30.5 28.4 30.1 35.7 42.1 136.3 132.1 margin 12.0% 10.8% 11.8% 13.3% 15.5% 12.9% 12.3% Operative EBIT 13.9 12.5 15.4 20.2 2
Slide 29: Fiber Essentials
Fiber Essentials KEY FINANCIALS EUR million Q1 Q4 Q3 Q2 Q1 2024 2023 2025 2024 2024 2024 2024 Revenue 151.2 148.5 144.1 143.9 151.7 588.2 676.1 Operative EBITDA 39.8 47.8 40.7 32.2 46.1 166.7 198.8 margin 26.3% 32.2% 28.2% 22.4% 30.4% 28.3% 29.4% Operative EBIT 24.7 32.5 25.6 17.8 31.7 107.7 142.5 m
Slide 30: 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% APRIL 25, 2025 Q1 2025 RESULT PRESENTATION 30
Slide 31: 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 32: Kemira
Kemifa WWW.KEMIRA.COM