EMS CHEMIE : Earning document

Half-Year Report 2021

of the EMS Group

EMS-CHEMIE HOLDING AG

Domat/Ems Switzerland

Contents

The EMS Group
The EMS Group in the first half of 2021	3
Outlook 2021	4

Interim consolidated financial statements
Financial report of the EMS Group for the first half of 2021	5
Segment information	12

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The EMS Group in the first half of 2021

The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG and globally active in the business areas High Performance Polymers and Specialty Chemicals, increased net sales to CHF 1,166 million (845) and net operating income (EBIT) to CHF 322 million (227) in the first half year of 2021. These figures are well above those of the previous year. In local currencies, net sales and operating income (EBIT) reached new record levels in the 85-years of company history.

Compared to the previous year, consolidated net sales rose by 38.0% to close at CHF 1,166 million (845). After the slump caused by COVID-19, the global economy recovered noticeably, which had a positive influence on sales volumes. Strong growth could be achieved, in particular in the Chinese sales market. Significant state support and stimulus measures, above all in the USA, are generating confidence having a positive effect on consumer spending. Sudden surges in demand and delivery bottle necks in supply chains are forcing the automotive industry to reduce production. Shortages in the raw material markets and logistic capacity are causing prices to rise continuously.

During the pandemic, EMS continued to pursue ongoing development and generation of new business. With the successful strategy of speciality products in the main area of High Performance Polymers, EMS is in a good position to make use of all possible opportunities in the market. Expanded production capacity and local inventory stocks safeguard the delivery capability of all EMS companies, even with current high demand. Raw material shortages and corresponding continually rising prices are forcing EMS to implement sales price increases for customers.

Net operating income (EBIT) amounted to CHF 322 million (227), which is 41.9% above previous year. Compared to the previous year, operational cash flow (EBITDA) increased by 37.8% to CHF 350 million (254). The EBIT margin rose to 27.6% (26.8%), the EBITDA margin reached 30.0% (30.0%). Strong sales development and the strong position with speciality products influenced the result development and the result margin in a positive way. This was hampered, however, by strongly rising raw material prices which made sales price increases for customers inevitable.

Net financial income amounted to CHF 4 Mio. (-2).

Net income for the first half of 2021 was CHF 281 million (192) which is +45.9% above the previous year.

Equity increased to CHF 1,886 million (31.12.2020: CHF 1,598 million). The equity

ratio is 76.1% (31.12.2020: 76.9%).

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Outlook 2021

For the business year 2021, EMS is expecting further economic recovery worldwide. The state stimulus programmes and low interest rates will come into their full effect and provide support for consumer spending and investment activities worldwide. Continuing instability, bottlenecks and price increases in global supply chains must, however, still be expected. The shortage of semi-conductors in the automotive industry will continue.

EMS will continue to follow its successful strategy of speciality products in the main area of High Performance Polymers. Customer demand for innovative products, solutions achieving weight savings and lower CO2 emissions as well as cost reduction through metal replacement, is continually growing. This allows EMS to develop new business and further strengthen market positions. Innovative development expertise in close cooperation with customers enables EMS to quickly recognise market developments and to adapt flexibly to them.

Based on a comprehensive number of new and innovative customer projects, EMS is confident to further expand business in the next years. In order to satisfy this increasing market demand in future, EMS will invest in additional capacity increases. Over the next five years, EMS will invest more than CHF 300 million in expansion of the production site at Domat/Ems (Canton Grisons, Switzerland).

For 2021, EMS continues to expect higher net sales and a higher net operating income (EBIT) than in the previous year.

Magdalena Martullo

CEO and Vice-Chairman of the

Board of Directors

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Interim Consolidated Financial Statements

Financial report of the EMS Group for the first half of 2021

In million CHF		2021	2020
	Notes	Jan-Jun	Jan-Jun
Consolidated income statement (condensed)
Net sales revenue from goods and services		1'166	845
Change		+38.0%
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 1)		350	254
Change		+37.8%	30.0%
In % of net sales revenue		30.0%
Net operating income (EBIT) 1)		322	227
Change		+41.9%	26.8%
In % of net sales revenue		27.6%
Net financial income	1	4	(2)
Net income before taxes		326	224
Change		+45.4%	(32)
Income taxes		(45)
Net income		281	192
Change		+45.9%	22.8%
In % of net sales revenue		24.1%
Of which attributable to:
Shareholders of EMS-CHEMIE HOLDING AG		278	191
Non-controlling interests		2	1
Earnings per share (in CHF)
Basic / Diluted 2)		11.91	8.18

1. The segment information by business area can be found on page 12.
2. The average weighted number of outstanding registered shares for the calculation is 23'389'028 shares on 30.06.2021 (30.06.2020: 23'389'028 shares). There is no earnings dilution.

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