outlook withdrawn due to an uncertain environment INVESTOR - PowerPoint PPT Presentation

APRIL 28, 2020 Good start to the year, outlook withdrawn due to an uncertain environment INVESTOR PRESENTATION

Kemira in brief LAST 12 MONTHS: REVENUE EUR 2,653 MILLION, OPERATIVE EBITDA EUR 423 MILLION, OPERATIVE EBITDA MARGIN 15.9%, OPERATIVE ROCE 11.8% SEGMENT SPLIT GEOGRAPHIES PRODUCTS 10% ◼ 20% Other: ◼ 43% ◼ 57% APAC e.g. defoamers, ◼ 25% Bleaching Industry & Water Pulp & Paper 1.China dispersants, 40% and pulping 2.South and biocides AMERICAS #2 globally Korea 1.USA 3.Thailand 2.Canada ◼ 15% 3.Brazil Sizing #1 in and 50% 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 2019. 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, Berlin, New York, Paris, Shanghai, Singapore Note: Revenue by industry, product and geography rounded to the nearest 5% APRIL 28, 2020 INVESTOR PRESENTATION 2

Why invest in Kemira Profitable growth 1 Operative EBITDA improved by +13% and Operative EBIT +21% in Q1/2020 Attractive dividend 2 Stable dividend and competitive yield Sustainable investment 3 Climate ambition to carbon neutrality by 2045 APRIL 28, 2020 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 Above the market revenue growth • Operative EBITDA 15-17% • Gearing below 75% APRIL 28, 2020 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 APRIL 28, 2020 INVESTOR PRESENTATION 5

Delivering profitable growth REVENUE OPERATIVE EBITDA OPERATIVE EBITDA MARGIN EUR million EUR million 410 2,659 2,593 2,486 323 15.4% 2,373 2,363 311 303 287 2,137 253 12.8% 12.5% 12.5% 12.1% 11.8% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 PRE IFRS 16 APRIL 28, 2020 INVESTOR PRESENTATION 6

Key profitability improvement actions in 2016-2019 Organic growth / expansion of site Acquisition Operational efficiencies Closure of site / divestment Ramp-up of of new Start-up of Ortigueira sodium Chevron CEOR deal & Start-up of new AKD wax site (CN) AKD wax site (CN) chlorate site (BR) Botlek expansion Polymer investment decision (US) Ramp-up of of new Bradford polymer expansion Start-up of Joutseno chlorate Joint Venture – Dry polymers (SK) polymer facility (NL) (UK) expansion (FI) Bleaching capacity San Giorgio polymer Major oil sands tailings water AKD wax manufacturing JV extension (US) expansion (IT) treatment deal (CA) deal closed (CN) 2019 Operative Operative 2018 EBITDA 2015: Move from ‘Value EBITDA 12.1% 2017 over volume’ to ‘Active 2019: ‘Value over volume’ initiated price management’ 15.4% 2016 (IFRS 16 Two segment Odyssey go-live in Europe Cost savings in included) structure operational Pulp & Paper Transportation agreement Closing of ECOX detergent with Odyssey Divestment of Odyssey go-live production (SWE) coagulant asset (IT) in North America Botlek modernization (NL) Divestment of BOOST operational Kemira Operon excellence program launch (water treatment facility Closures of Ottawa (CA) and operations, FI) Zaramillo (ES), coagulants APRIL 28, 2020 INVESTOR PRESENTATION 7

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 1,523 1,520 ◼ 40% ◼ 40% ◼ 20% ◼ 5% Other ◼ 40% Pulp Board & Printing & Bleaching ◼ 10% tissue writing papers & pulping 1,477 Polymers 1,457 218 ◼ 20% 198 192 1,417 Defoamers, 195 dispersants, 171 biocides and Market ◼ 25% 1-2% 2-3% -1-2% other process growth Sizing & chemicals strength 2015 2016 2017 2018 2019 MARKET ENVIRONMENT REVENUE BY GEOGRAPHIES AND CUSTOMER EXAMPLES MARKET GROWTH BY REGION #1 Solenis (paper)* ◼ 15% ◼ 50% ◼ 35% 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% APRIL 28, 2020 INVESTOR PRESENTATION 8

Industry & Water – strong positions in chosen categories REVENUE AND OPERATIVE EBITDA REVENUE BY APPLICATION REVENUE BY TYPE AND MARKET GROWTH PRODUCT CATEGORY EUR million 1,136 1,073 1,009 956 ◼ 25% ◼ 10% ◼ 65% ◼ 20% ◼ 40% 906 Oil & Gas Water treatment Other Other Coagulants 192 products such as 131 116 114 defoamers Municipal Industrial 107 and biocides Market ◼ 40% 2015 2016 2017 2018 2019 2-3% 5-6% 2-3% growth Polymers 2015-2016 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% ◼ 45% ◼ 50% 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): Berlin 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) * Solenis-BASF combined entity Note: Revenue by industry, product and geography rounded to the nearest 5% APRIL 28, 2020 INVESTOR PRESENTATION 9

Kemira’s financial targets FINANCIAL TARGETS AND HISTORICAL FIGURES Targets 2018 2019 IFRS 16 impact in Q1 2020 Financial target 2019 Revenue MEUR 2,593 MEUR 2,659 - MEUR 642 Above-the-market Change +4% Change +3% Change -1% growth Operative 12.5% 15.4% Around +1.3 %-point 16.9% 15-17% EBITDA* Gearing* 62% 66% Around +11 %-points 67% 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 Q1 2020 comments Organic growth through volume and sales price increases Group’s organic growth was stable excl. forest industry strike Growth investments – Polymer capacity expansion in Netherlands, AKD Backward integration. Gradual positive contribution to sizing Joint Venture in China, Polymer capacity expansion in the US EBITDA starting Q1 2020. Sales price vs raw material price development Focus on value over volume visible in profitability; favorable variable cost development APRIL 28, 2020 INVESTOR PRESENTATION 10

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: 3-4% 22 2019 2025 Pulp Printing & writing Board & tissue INDUSTRY & WATER RELEVANT MARKET EUR billion 18 CAGR: 13 5-6% 2019 2025 2019 2025 Americas EMEA APAC Water treatment Oil & Gas Other Source: Management estimation based on various sources APRIL 28, 2020 INVESTOR PRESENTATION 11