EMS CHEMIE : Earning document

Half-Year Report 2022

of the EMS Group

EMS-CHEMIE HOLDING AG

Domat/Ems Switzerland

Contents

The EMS Group
The EMS Group in the first half of 2022	3
Forecast 2022	4

Interim consolidated financial statements
Financial report of the EMS Group for the first half of 2022	5
Segment information	12

Half-year report 2022 of the EMS Group

2/12

The EMS Group in the first half of 2022

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, achieved net sales amounting to CHF 1,284 million (1,166) and a net operating income (EBIT) of CHF 324 million (322) in the first half-year of 2022.

While the first quarter of 2022 was characterized by a positive consumer mood and generally high demand, the global economy worsened significantly in the second quarter. Particularly in Europe, the Ukraine conflict caused great uncertainty among consumers and companies. Massively increased energy costs caused raw material prices to rise abruptly and triggered additional surges in inflation. In China, rigorous lockdown measures forced customers to production shutdowns. Overheated demand in the USA was slowed by rising interest rates. As expected, the continuing shortage of semiconductors prevented any recovery by the global automotive industry.

EMS had already prepared for unstable economic developments at the beginning of the year. Innovative new business was realized successfully and new energy and cost-saving products were introduced into the market. Meanwhile, continual expansion of production capacity, together with local inventory stocks, safeguards delivery reliability. EMS was able to show overproportional growth compared to its markets. Rising inflation, in particular with regard to raw materials and energy costs, made corresponding sales price increases for customers inevitable.

Consolidated net sales rose compared to the previous year by 10.1% to close at CHF 1,284 million (1,166). Net operating income (EBIT) reached CHF 324 million

1. which is 0.8% above previous year. The operational cash flow (EBITDA) amounted to CHF 354 million (350) which is 1.2% above previous year. The EBIT margin reached 25.2% (27.6%), the EBITDA margin 27.6% (30.0%). Due to sales price increases, made necessary by higher raw material costs, net sales developed more strongly than the net operating income.

Net financial income amounted to CHF +7 Mio. (+4).

Net income for the first half of 2022 was CHF 286 million (281) which is +1.8% above the previous year. Equity attributable to shareholders of EMS-CHEMIE Holding AG increased to CHF 2,077 million (31.12.2021: CHF 1,799 million). The equity ratio is 79.1% (31.12.2021: 77.4%).

Half-year report 2022 of the EMS Group

3/12

Outlook 2022

For the second half-year 2022, EMS is expecting a slower global economy. The shortage of semiconductors in the automotive industry will continue. The generally high inflation, pushed by energy prices, will have an increasingly negative effect on overall economic development. Further interest rate increases by central banks will have an additional slowing effect. In China, economic development will be strongly influenced by the extent of any further lockdown measures. A shortage of energy or a military escalation of the Ukraine conflict could have an enormous negative impact on Europe.

In these turbulent times, EMS will continue to follow the proven strategy of concentration on specialties. Focus will be on implementing planned development and expansion projects. Now more than ever, planned research and development projects will be driven ahead and new opportunities appearing in the market will be rapidly made use of. Innovative products and solutions providing customers savings on energy and overall costs will be given primary focus. The investment program announced last year, with more than CHF 300 million to increase capacity at the main production location in Domat/Ems, Switzerland, is being implemented. Other production locations outside of Switzerland are also undergoing major expansion. EMS considers delivery reliability to be top priority.

Despite the currently adverse environment, EMS continues to expect net sales and net operating income (EBIT) for 2022 to be slightly above previous year.

Magdalena Martullo

CEO and Vice-Chairman of the

Board of Directors

Half-year report 2022 of the EMS Group

4/12

Interim Consolidated Financial Statements

Financial report of the EMS Group for the first half of 2022

In million CHF		2022	2021
	Notes	Jan-Jun	Jan-Jun
Consolidated income statement (condensed)
Net sales revenue from goods and services		1'284	1'166
Change		+10.1%
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 1)		354	350
Change		+1.2%
In % of net sales revenue		27.5%	30.0%
Net operating income (EBIT) 1)		324	322
Change		+0.8%
In % of net sales revenue		25.2%	27.6%
Net financial income	1	7	4
Net income before taxes		331	326
Change		+1.5%
Income taxes		(45)	(45)
Net income		286	281
Change		+1.8%
In % of net sales revenue		22.2%	24.1%
Of which attributable to:
Shareholders of EMS-CHEMIE HOLDING AG		285	278
Non-controlling interests		0	2
Earnings per share (in CHF)
Basic / Diluted2)		12.20	11.91

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 30.06.2022 (30.06.2021: 23'389'028 shares). There is no earnings dilution.

Half-year report 2022 of the EMS Group

5/12