in seasonally strong third quarter INVESTOR PRESENTATION Kemira in - PowerPoint PPT Presentation

OCTOBER 24, 2019 Excellent profitability in seasonally strong third quarter INVESTOR PRESENTATION

Kemira in brief LAST 12 MONTHS: REVENUE EUR 2,663 MILLION, OPERATIVE EBITDA EUR 404 MILLION, OPERATIVE EBITDA MARGIN 15.2%, OPERATIVE ROCE 11.5% SEGMENT SPLIT GEOGRAPHIES PRODUCTS 9% ◼ 20% Other: ◼ 43% ◼ 57% APAC e.g. defoamers, ◼ 25% Bleaching Industry & Water Pulp & Paper 1.China dispersants, 39% and pulping 2.South and biocides AMERICAS #2 globally Korea 1.USA 3.Thailand 2.Canada ◼ 15% 3.Brazil Sizing #1 in and 52% water strength EMEA treatment 1.Finland in NA and 2.Sweden ◼ 20% ◼ 20% Europe 3.Germany Polymers Coagulants #2 in friction reduction in North American shale oil & gas Revenue by geographies and product category represent FY 2018. CUSTOMERS EXAMPLES OF LARGEST CUSTOMERS Several thousand customers TOP 10 customers are ~ 25% of revenue Municipalities, e.g. TOP 50 customers are ~ 50% of revenue Frankfurt, London, New York, Paris, Shanghai, Singapore OCTOBER 2019 INVESTOR PRESENTATION 2

Why invest in Kemira Profitable growth 1 Operative EBITDA improved by +34% and Operative EBIT +41% in January-September 2019 Attractive dividend 2 Stable dividend and competitive yield Sustainable investment 3 Excellent sustainability performance (EcoVadis rating: Gold) OCTOBER 2019 INVESTOR PRESENTATION 3

Strategy and Equity Story in summary HOW KEMIRA CREATES VALUE OUR MARKET BUILDING A GREAT EXECUTION – VALUE FOCUS CHEMICALS COMPANY OVER VOLUME Great products: Chemicals for Pulp & Paper, Improving product and market mix Oil & Gas and Water Treatment 4 core areas are polymers, coagulants, Focusing on capital efficiency sizing and bleaching chemicals which meet #1 or #2 in our core markets our customers’ needs incl. resource efficiency Investing selectively in core Market growth estimated to be 2-3% p.a. product areas with higher return Great operations: supported by higher use of fiber-based on capital employed Deliver reliably with consistent quality products, resource efficiency and regulation Great people: Deep application expertise and innovation capability FINANCIAL TARGETS (mid- to long-term) Above the market revenue growth • Operative EBITDA 15-17% • Gearing below 75% OCTOBER 2019 INVESTOR PRESENTATION 4

Global megatrends favor Kemira GROWING MIDDLE SCARCITY CLASS & REGULATION OF RESOURCES URBANIZATION Higher use of E-commerce / Alternative Material and More stringent Safe drinking water, energy, online shopping materials for resource discharge limits water tissue and board single-use plastic efficiency products OCTOBER 2019 INVESTOR PRESENTATION 5

Delivering profitable growth PRE IFRS 16 REVENUE OPERATIVE EBITDA OPERATIVE EBITDA MARGIN EUR million EUR million 2 593 323 311 2 486 303 287 2 373 2 363 253 2 137 12.8% 12,5% 12.5% 12.1% 11.8% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 OCTOBER 2019 INVESTOR PRESENTATION 6

Pulp & Paper – strong business with solid track record REVENUE AND OPERATIVE EBITDA REVENUE BY CUSTOMER REVENUE BY TYPE AND MARKET GROWTH PRODUCT CATEGORY EUR million ◼ 40% ◼ 40% ◼ 20% ◼ 5% Other ◼ 40% 1,520 1,457 1,477 1,417 Pulp Board & Printing & Bleaching 1,170 ◼ 10% tissue writing papers & pulping Polymers 198 195 192 171 ◼ 20% 137 Defoamers, dispersants, biocides and Market ◼ 25% 1-2% 2-3% -1-2% other process growth Sizing & chemicals 2014 2015 2016 2017 2018 strength MARKET ENVIRONMENT REVENUE BY GEOGRAPHIES AND CUSTOMER EXAMPLES MARKET GROWTH BY REGION #1 Solenis (paper)* ◼ 15% ◼ 55% ◼ 30% Kemira (pulp and paper) m.s. ~16% #2 APAC EMEA Americas #3 Nouryon (pulp) Ecolab (paper) #4 Market 1% 0-1% 2-3% Kurita (paper) #5 growth * Solenis-BASF combined entity Note: Revenue by industry, product and geography rounded to the nearest 5% OCTOBER 2019 INVESTOR PRESENTATION 7

Industry & Water – strong positions in chosen categories REVENUE AND OPERATIVE EBITDA REVENUE BY APPLICATION REVENUE BY TYPE AND MARKET GROWTH PRODUCT CATEGORY EUR million 1,073 1,009 956 947 ◼ 25% ◼ 10% 906 ◼ 65% ◼ 20% ◼ 40% Oil & Gas Water treatment Other Other Coagulants 131 products 116 116 114 107 such as defoamers Municipal Industrial and biocides Market 2014 2015 2016 2017 2018 ◼ 40% 2-3% 5-6% 2-3% growth Polymers 2014-2016 figures are pro forma; combination of Municipal & Industrial and Oil & Mining segments MARKET ENVIRONMENT REVENUE BY GEOGRAPHIES AND CUSTOMER EXAMPLES MARKET GROWTH BY REGION WATER TREATMENT OIL & GAS ◼ 5% ◼ 50% ◼ 45% MUNICIPAL (40%), INDUSTRIAL (60%), Market share Market share ~25% in APAC ~30% in coagulants and polymers used in shale EMEA Americas customer examples customer examples ~20% in polymers oil & gas Amsterdam Los Angeles Barcelona Montreal Main competitors in Main peers in polymers Frankfurt New York City coagulants: (also in water treatment): London Toronto • Feralco (Europe) • SNF Oslo Melbourne Market Paris Shanghai • Kronos (Europe) • Solenis 3-4% 3-4% 5-6% growth Stockholm Singapore • Chemtrade (NA) • Solvay (only O&G) • USAlco (NA) Note: Revenue by industry, product and geography rounded to the nearest 5% OCTOBER 2019 INVESTOR PRESENTATION 8

Kemira’s mid - to long-term financial targets FINANCIAL TARGETS AND HISTORICAL FIGURES Targets 2017 2018 IFRS 16 impact 1-9 2019 Mid- to long-term target Revenue MEUR 2,486 MEUR 2,593 - MEUR 2,001 Above-the-market Change +5% Change +4% Change +4% growth Operative 12.5% 12.5% Around +1 %-point 16.0% 15-17% EBITDA* Gearing* 59% 62% Around +11 %-points 71% Below 75% * Targets updated in February 2019 due to IFRS 16 accounting change. 2017-2018 figures are PRE IFRS 16. KEY FACTORS TO WATCH FOR PROFITABILITY IMPROVEMENT Factors 1-9 2019 comments Organic growth through volume and sales price increases Group’s organic growth +1% Oil & Gas becoming larger share of Group (incl. shale, CEOR and oil sands) Revenue from EUR 126m in 2016 to around 300m run-rate Sales price vs raw material price development Focus on value over volume visible in profitability; higher sales prices and better product mix Growth investments – Polymer capacity expansion in Netherlands, AKD Backward integration and growth benefits 2020-21 sizing Joint Venture in China, Polymer capacity expansion in the US OCTOBER 2019 INVESTOR PRESENTATION 9

Healthy market growth for Kemira’s relevant markets KEMIRA RELEVANT MARKET PULP & PAPER RELEVANT MARKET EUR billion EUR billion 10 CAGR: 9 27 1-2% CAGR: 2- 3% 22 2018 2023 Pulp Printing & writing Board & tissue INDUSTRY & WATER RELEVANT MARKET EUR billion 17 CAGR: 13 3-4% 2018 2023 2018 2023 Americas EMEA APAC Water treatment Oil & Gas Other Source: Management estimation based on various sources OCTOBER 2019 INVESTOR PRESENTATION 10

Kemira pays stable and competitive dividend • Kemira’s dividend policy is to pay a stable ◼ Dividend per share  Dividend yield and competitive dividend 0,53 0,53 0,53 0,53 0,53 0,53 0,53 0.53 • Kemira has paid dividend every year since listing of shares in 1994 • Attractive dividend yield 5.8% 4.5% 4.4% 5.4% 4.9% 4.4% 4.6% 5.4% 2011 2012 2013 2014 2015 2016 2017 2018 Kemira’s dividend yield calculated using the share price at year-end OCTOBER 2019 INVESTOR PRESENTATION 11

Our three sustainability priorities Incorporating sustainability into Ensuring responsible operations our products and solutions to protect our assets, our environment, employees, Proactive product stewardship contractors, customers and Sustainable throughout the products’ lifecycle Responsible communities products operations & Ensuring compliance with KPI’S AND TARGETS and responsible business practices supply chain At least 50% of our revenue is generated solutions through products improving customers’ in our supply chain resource efficiency KPI’S AND TARGETS • Carbon Index 80 by 2020 (Baseline Culture and commitment to people 100 in 2012) • People safety TRIF 2.0 by 2020 Ensuring compliance with People and Supplier Sustainability Evaluation Kemira Code of Conduct • 90% of direct key suppliers screened integrity through sustainability evaluation KPI’S AND TARGETS through assessments and audits (Baseline 60% in 2017) • Employee engagement index above industry benchmark • Leadership development activities 2 per people manager position, cumulative target 1500 by 2020 (2015=0) • Integrity index continuously increasing OCTOBER 2019 INVESTOR PRESENTATION 12