JARI ROSENDAL, PRESIDENT AND CEO

PETRI CASTRÉN, CFO

JULY 15, 2022

Record-high revenue and operative EBITDA

JANUARY - JUNE 2022

Summary of Q2 2022

  • Record-strongQ2 2022: Record-high revenue and operative EBITDA. Relative profitability impacted by continued strong inflationary pressures.
  • Biobased strategy progressing: new Growth Accelerator unit launched in June; contract extension with Danimer Scientific announced in May
  • Kemira commits to the Science Based Targets Initiative (SBTi); new ambitious climate target set
  • Exit from Russia progressing well
  • Outlook upgraded June 8. Operative EBITDA now expected to increase from 2021 (EUR 425.5 million).

J U L Y 1 5 , 2 0 2 2

Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N

2

Financial highlights of Q2 2022

Record-high revenue in Q2 2022

  • Revenue growth driven by higher sales prices in both segments and in all regions. Sales volumes declined.
  • Organic revenue growth 24% in Q2 2022; 23% in H1 2022

Record-high operative EBITDA in Q2 2022

  • Margin declined due to continued strong inflationary pressures. Price increases ongoing to mitigate impacts from higher inflation.

Cash flow from operations declined due to an increase in net working capital

EUR million

Q2

Q2

Δ%

H1

H1

Δ%

FY

(except ratios)

2022

2021

2022

2021

2021

Revenue

861.4

657.5

+31%

1,629.4

1,263.6

+29%

2,674.4

Operative EBITDA

122.1

107.3

+14%

242.1

211.9

+14%

425.5

of which margin

14.2%

16.3%

-

14.9%

16.8%

-

15.9%

Operative EBIT

69.7

58.2

+20%

138.6

114.0

+22%

225.4

of which margin

8.1%

8.9%

-

8.5%

9.0%

-

8.4%

Net profit

46.9

24.9 +88%

89.1

65.7

+36%

115.2

EPS diluted, EUR

0.29

0.15

+95%

0.56

0.40

+38%

0.70

Cash flow from

41.6

38.6

+8%

30.6

52.4

-42%

220.2

operating activities

Earnings per share EUR 0.29 in Q2 2022; EUR 0.56 in H1 2022

J U L Y 1 5 , 2 0 2 2

Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N

3

Pulp & Paper: Record-high revenue and operative EBITDA

Market environment in Q2 2022

  • Continued solid demand across customer segments and geographic regions

Organic growth Q2 2022: +22%; H1 2022 20%

  • Organic growth driven by higher sales prices. Work ongoing to shorten pricing checkpoints in customer contracts.
  • Sales volumes declined mainly due to exit from Russia and strike at a customer in Finland

Record-high operative EBITDA

  • Margin resilient at 15.1% despite unprecedented inflationary environment

J U L Y 1 5 , 2 0 2 2Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N

REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y)

EUR million

488

420

447

391

378

357

370

370

378

352

-1%

-4%

-5%

0%

2%

9%

11%

11%

17%

22%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2020

2021

2022

OPERATIVE EBITDA AND OPERATIVE EBITDA-%

EUR million

18.6%

18.6%

15.9%

18.4%

17.0%

15.3%

16.2%

16.0%

15.1%

14.4%

65.6

65.5

68.9

60.2

62.9

57.8

63.5

60.5

71.3

73.6

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2020

2021

2022

4

Industry & Water: Record-high revenue

Market environment in Q2 2022

  • Water treatment: Good demand in both municipal and industrial water treatment
  • Oil & Gas: shale market grew but slower than expected. Solid demand in oil sands tailings and CEOR*.

Organic growth Q2 2022: 26%; H1 2022 28%

  • Organic growth driven by higher sales prices. Sales volumes stable.
  • Organic growth excluding Oil & Gas +27% in Q2 2022. Oil & Gas revenue growth +36% in Q2 2022, organic growth +24%.

Operative EBITDA margin Q2 2022: 13.0%

  • Margin declined due to unprecedented inflationary pressures
  • Further profitability improvement needed in Oil & Gas

REVENUE AND ORGANIC REVENUE GROWTH (Y-ON-Y)

EUR million

322

374

301

298

264

279

244

226

236

237

-1%

-22%

-18%

-10%

-7%

28%

23%

23%

31%

26%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2020

2021

2022

OPERATIVE EBITDA AND OPERATIVE EBITDA-%

EUR million

18.3%

17.7%

19.5%

16.6%

17.6%

17.7%

17.4%

12.5%

15.2%

13.0%

48.2

47.6

49.5

52.3

48.8

40.0

39.0

41.7

37.3

48.5

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2020

2021

2022

J U L Y 1 5 , 2 0 2 2

Q 2 2 0 2 2 R E S U L T P R E S E N T A T I O N

*CEOR= chemical enhanced oil recocery

5

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Kemira Oyj published this content on 15 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2022 05:43:07 UTC.