Kemira (KEMIRA) Investor Presentation summary

Business overview and strategy

• Operates in over 100 countries with 57 manufacturing sites and 4,600+ employees, focusing on Pulp & Paper (60% of revenue) and Industry & Water (40%).

• Strategic transformation to a water-focused company, divesting Oil & Gas and aiming to double water revenue.

• New organizational model from 2025: Water Solutions, Fiber Essentials, and Packaging & Hygiene Solutions, each with distinct financial profiles.

• Ambition to achieve >4% average annual organic growth, 18–21% operative EBITDA margin, and >16% ROCE.

• Strong market positions: #1 in water treatment in Europe, #2 globally in Pulp & Paper chemicals.

Financial performance and outlook

• Q3 2024 revenue at €728 million, organic growth +2% year-on-year, driven by Industry & Water.

• Operative EBITDA margin improved to 20.3% in Q3 2024, with solid performance in both segments.

• Net debt/EBITDA at 0.5, with a record-strong balance sheet and gearing at 18%.

• 2024 revenue expected between €2.8–3.2 billion, operative EBITDA €540–640 million; outlook unchanged.

• Dividend per share for 2023 was €0.68, yielding ~4%.

Segment highlights

• Pulp & Paper: Gradual market recovery slowed in Q3; organic growth flat, margin improved to 17.7%.

• Industry & Water: Robust demand, organic growth 5% in Q3, EBITDA margin at 23.3%, ROCE at 34.5%.

• Water Solutions to become the largest business unit from 2025, targeting significant expansion in water treatment and related services.