Kemira Oyj : Q3 2021 Result presentation

JARI ROSENDAL, PRESIDENT AND CEO

PETRI CASTRÉN, CFO

OCTOBER 26, 2021

Record quarterly revenue

JANUARY-SEPTEMBER 2021

Summary of Q3 2021

• Strong end-market growth continued
• Organic revenue growth +16%, record-high quarterly revenue in a seasonally strong quarter
• Profitability impacted by strong raw material inflation. Impact from inflationary pressures expected to continue in the coming quarters, particularly in Q4 2021.
• Actions to mitigate price pressure continued
• Ramp-upof investments in South Korea and the U.S. ongoing. New ASA sizing investment announced in China.
• Second dividend installment of EUR 0.29 to be paid on November 4, 2021
• Outlook for 2021 unchanged

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Financial highlights of Q3 2021

Strong organic revenue growth of 16%

• Strong demand in both segments, geographically particularly in EMEA and the Americas
• Organic revenue growth excl. Oil & Gas business 11%

Operative EBITDA EUR 115.9 million

• Absolute EBITDA grew following higher sales prices and volumes. Positive impact from emission right compensation (7 MEUR), received fully in Q3.
• Margin declined due to significantly higher raw material prices

Earnings per share increased to EUR 0.25

EUR million	Q3	Q3	Δ%	1-9	1-9	Δ%	FY
(except ratios)	2021	2020		2021	2020		2020
Revenue	692.7	596.7	+16%	1,956.2	1,821.6	+7%	2,427.2
Operative EBITDA	115.9	113.0	+3%	327.8	327.2	0%	435.1
of which margin	16.7%	18.9%	-	16.8%	18.0%	-	17.9%
Operative EBIT	64.5	62.3	+3%	178.4	180.7	-1%	237.7
of which margin	9.3%	10.4%	-	9.1%	9.9%	-	9.8%
Net profit	39.6	39.0	+1%	105.3	114.2	-8%	138.0
EPS diluted, EUR	0.25	0.24	+1%	0.65	0.71	-9%	0.86
Cash flow from	86.9	117.3	-26%	139.4	228.3	-39%	374.7
operating activities

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Pulp & Paper: Revenue growth across

customer segments

Market environment in Q3 2021

• Strong demand in pulp, board and tissue; continued recovery in printing and writing demand.

Organic growth +11%

• Sales volumes continued to grow; sales prices also increased clearly
• Organic growth driven by strong demand across customer segments. Strong demand in EMEA and the Americas.

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

EUR million

381	373	383	386	378			370	370	378	391
			357	352
+0%	-3%	-3%	-3%	-1%	-4%	-5%	0%	2%	9%	11%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	2019			2020			2021

Operative EBITDA margin 16.2%	OPERATIVE EBITDA AND OPERATIVE EBITDA-%
EUR million				18.6% 18.6%
			18.4%	17.0% 15.3% 16.2%
• Higher raw material prices impacted margin	13.3%	14.4%	16.0%	13.6%	15.9%
negatively. Positive impact from emission right	61.3	60.2	65.6	65.5	68.9	62.9		63.5
	53.7		57.8
compensation (7 MEUR), which was received fully in	50.7	52.6
Q3 this year (during Q3 and Q4 in 2020).
Ramp-up of polymer capacity in South Korea
ongoing
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
		2019			2020			2021

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Industry & Water: Strong organic growth

Market environment in Q3 2021

• Water treatment: Good demand in both municipal and industrial water treatment
• Oil & Gas: demand improved sequentially and year- on-year.

Organic growth +23%

• Sales volumes and sales prices increased
• Organic growth excluding Oil & Gas +11%. Good demand in water treatment across regions.

Operative EBITDA margin 17.4%

• Higher raw material prices impacted margin negatively

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

EUR million

267	290	307	272	264					279	301
		226	244	236	237
+5%	+4%	+6%	-1%	-1%	-22%	-18%	-10%	-7%	28%	23%
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	2019			2020			2021

OPERATIVE EBITDA AND OPERATIVE EBITDA-%

EUR million

16.8% 18.1% 18.5%	13.8%	18.3% 17.7% 19.5% 16.6% 17.6% 17.7% 17.4%
45.0	52.4	56.8	48.2	40.0	47.6	39.0	41.7	49.5	52.3
		37.5
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	2019			2020			2021

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