Petri Castrén | May, 2015 Kemira credit investor presentation Creating value where water meets chemistry
Disclaimer This presentation contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures and future cash sources and requirements, that involve known and unknown risks, uncertainties and other factors that may cause Kemira Oyj’s or its businesses’ actual results of operations, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward- looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the forward-looking statements contained in this presentation, possibly to a material degree. All forward-looking statements made in this presentation are based on information presently available to management and Kemira Oyj assumes no obligation to update any forward-looking statements, unless obligated to do so under applicable law or regulation. It is expected that each potential investor is acting for its own account, and it will make its own independent decisions to enter into any transaction and as to whether any transaction is appropriate or proper for it based upon its own judgment. The potential investor shall make its own evaluations, calculations, appraisal of the financial structure and financial outcome, credit analysis or any other evaluation (inter alia tax consideration) and the party shall make its own independent assessment of the terms and conditions of any proposed transaction. It is not relying on any communication (written or oral), information or explanation of Danske Bank, SEB and/or Kemira as an advice or as a recommendation to enter into any transaction. No communication (written or oral) received from any of Danske Bank, SEB and Kemira shall be deemed to be an assurance or guarantee as to the expected results of any transaction. The information may not be used or reproduced, in whole or in part, for any other purpose, nor be furnished nor distributed to any persons other than those to whom copies of this information package have been delivered by any of Danske Bank, SEB and Kemira. Further, the distribution of any information in this presentation, and the offer, sale and delivery of the securities described herein in certain jurisdictions may be restricted by law. There shall be no sale of these securities in any state or jurisdiction in which an offer, solicitation or sale would be unlawful prior to qualification under the securities laws of such state or jurisdiction. By electing to view this presentation, you represent and agree that you are not resident in the United States nor a US Person, as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act"), nor acting on behalf of a US Person and, to the extent you purchase the securities described in this presentation, you will be doing so pursuant to Regulation S under the Securities Act. Kemira credit investor presentation 2015 December 19, 2017 2
Presenting Kemira Our business 1 Our strategic focus 2 Review of financials 3 Key debt metrics 4 Potential bond transaction 5 Appendix 6
1. Our business
We help customers create more value by applying our expertise where water meets chemistry Kemira is a global chemicals company serving customers in water-intensive industries Focus Revenue Revenue split by EUR 2.14 billion (2014) customer benefit • Pulp & Paper Product quality or product yield • Oil & Gas optimization 50% • Mining Process and energy • Water treatment efficiency 20% Employees 4,250 (2014) Water quality and regulatory compliance in raw water and wastewater treatment 30% Kemira shares are listed on the NASDAQ OMX Helsinki stock exchange. Kemira credit investor presentation 2015 December 19, 2017 5
Business units in 40 countries and sales in more than 100 reach our customers around the world KEMIRA HQ Helsinki, Finland Paper & M&I EMEA management Frankfurt, Germany ASIA PACIFIC 6% Regional HQ EUR 120 million Atlanta, USA 350 O&M management Regional HQ EUROPE, MIDDLE EAST Houston, USA Shanghai, China AND AFRICA 55% EUR 1,170 million 2,410 Paper management AMERICAS 39% Hong Kong EUR 850 million 1,480 R&D and technology centers Employees Kemira credit investor presentation 2015 December 19, 2017 6
Key figures EUR million (except ratios) 2014 2013 2012 2011 2010 Revenue 2,137 2,229 2,241 2,207 2,161 EBITDA, excluding non-recurring items 253 252 249 253 259 % of revenue 11.8 11.3 11.1 11.5 12.0 Gearing, % at period-end 42 41 42 38 39 Personnel at period-end 4,248 4,453 4,857 5,006 4,977 Kemira credit investor presentation 2015 December 19, 2017 7
Our business is organized into customer-based segments SALES BY SEGMENT (2014) OPERATIVE EBITDA BY SEGMENT (2014) OIL & MINING 20 % 19 % PAPER 55 % 54 % 25 % 27 % MUNICIPAL & INDUSTRIAL Kemira credit investor presentation 2015 December 19, 2017 8
Kemira Management Board Jari Rosendal Petri Castrén President & CEO CFO Mats Rönnbäck Antti Salminen Tarjei Johansen Oil & Mining Paper Municipal & (Interim) Industrial Heidi Fagerholm Eeva Salonen Michael Löffelmann Esa-Matti Puputti CTO HR Projects & Operational Manufacturing Excellence Technology (as of May 18, 2015) 9
A leading global pulp and paper chemical supplier PAPER, Packaging, Revenue 2014: EUR 1,170 million board and Operative EBITDA: EUR 137 million, 11.7% margin tissue grades Expertise We have unique expertise in applying chemicals and supporting pulp & paper producers to innovate and constantly improve their operational efficiency and end-product quality. 35% Offering We develop and commercialize new products to fulfil 45% customer needs and to ensure a leading portfolio for the pulp and paper industry. Market position: Chemical, #1 in EMEA 20% mechanical and recycled pulp #2 in Americas and APAC Paper grades Kemira credit investor presentation 2015 December 19, 2017 10
Growing chemical supplier to Oil & Gas and Mining industries OIL & MINING, Minerals & Metals Revenue 2014: EUR 382 million applications Operative EBITDA: EUR 48 million, 12.7% margin Expertise We provide a unique combination of innovative chemicals and application knowledge that improves process 20% efficiency and yield in oil, gas and metals recovery. Offering We use our in-depth understanding of extraction processes to tailor solutions for water management and re- use. 80% Market position: #2 in emulsion and dry polyacrylamides Oil & Gas and process additives applications Kemira credit investor presentation 2015 December 19, 2017 11
Oil & Mining is a growing partner to the oil, gas and mining industry Kemira’s revenue split in oil and gas applications • Business is driven by cyclical oil, gas and metals prices • Less than 50% of Oil & Mining revenue is related to shale operations • Kemira is the world’s second largest dry and emulsion polyacrylamide 15% 75% producer • 10% 0% Market leader in friction reducers in the US for shale fracking • Polymer technology is a growing trend in the shale operations
Market leader in raw and wastewater treatment chemicals MUNICIPAL & INDUSTRIAL, Other Revenue 2014: EUR 565 million Operative EBITDA: EUR 68 million, 12.1% margin Expertise We enable our customers to improve their water 15% 20% treatment efficiency by providing value adding support and high performing chemicals. Polymers Offering We are the only company that manufactures and supplies such a broad range of water treatment chemicals – both polymers and coagulants, as well as antiscalants, defoamers and water disinfectant. Market position: In water treatment chemicals 65% #1 in EMEA (67% of M&I revenue) Coagulants #1 in North America (28% of M&I revenue) Re-entry into emerging markets once legislation comes into force Kemira credit investor presentation 2015 December 19, 2017 13
2. Our strategic focus INNOVATION We invest in innovation and expertise. BUSINESS FOCUS We provide expertise and chemicals for water-intensive industries. GROWTH We target profitability and above-the- market growth. GEOGRAPHICAL FOCUS We strengthen position in mature markets and expand selectively in emerging markets.
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