Kemira (KEMIRA) Investor Presentation summary

Company overview and business model

• Operative EBITDA margin at 20.9% and ROCE at 21.6% for LTM, with revenue of €2.84 billion excluding Oil & Gas.

• Operations span 57 manufacturing sites in 40 countries, serving over 100 countries globally.

• Business split: 60% Pulp & Paper, 40% Industry & Water; top 10 customers account for ~25% of revenue.

• Key products include coagulants, polymers, sizing/strength chemicals, and bleaching agents.

• Strategic transformation to a water-focused company, with divestment of Oil & Gas business in 2024.

Market position and growth drivers

• Holds #1 or #2 global positions in Pulp & Paper and water treatment markets.

• Pulp & Paper chemicals market expected to grow 1–2% annually; Industry & Water chemicals 4–5%.

• Market growth driven by sustainability trends, e-commerce, urbanization, and tightening regulations.

• Strong presence in EMEA, with leading positions in water treatment and pulp chemicals.

• Focus on expanding in water, building renewable solutions, and scaling digital services.

Financial performance and outlook

• Q2 2024 revenue €733.4 million, with organic growth of 1% and operative EBITDA margin at 19.2%.

• Industry & Water segment delivered strong margin at 22.6% and ROCE at 35.0%.

• Net debt/EBITDA at 0.6, with gearing at 21% and strong cash flow from operations.

• 2024 revenue outlook upgraded to €2.8–3.2 billion; operative EBITDA expected at €540–640 million.

• Dividend policy targets competitive and increasing dividends, with a 2023 DPS of €0.68 (~4% yield).