Kemira Oyj: Kemira publishes alternative key figures for 2022 and 2023 to reflect the divestment of its Oil & Gas related portfolio

Kemira publishes alternative key figures for 2022 and 2023 to reflect the divestment of its Oil & Gas related portfolio

Kemira announced on December 4, 2023 (https://www.kemira.com/company/media/newsroom/releases/inside-information-kemira-divests-its-oil-gas-business/) that it had signed an agreement to divest its Oil & Gas related portfolio to Sterling Specialty Chemicals LLC, a US subsidiary of Artek Group, a global industrial chemicals group based in India.

The portfolio was classified as held for sale until the closing of the transaction. The divestment was closed on February 2, 2024 (https://www.kemira.com/company/media/newsroom/releases/kemira-completes-the-divestment-of-its-oil-gas-related-portfolio/) as announced by Kemira with a press release.

Additional alternative key figures

Kemira will not restate the income statement nor the balance sheet for financial years 2022 and 2023. Kemira will instead publish selected alternative key figures that are adjusted for the divestment of the Oil & Gas related portfolio for 2022 and 2023 as well as quarterly for 2022 and 2023. Alternative key figures are available as an attachment to this release and they are also presented later in this release. These additional alternative key figures are not defined by IFRS. Kemira believes that these additional alternative key figures provide useful information about Kemira's comparable business performance and financial position to the capital markets and are followed by Kemira's management.

Kemira will publish alternative key figures for Kemira Group and also for the Industry & Water segment. The historical figures of the Pulp & Paper segment remain unchanged. Kemira will use alternative key figures for the Industry & Water segment as the comparison point in its financial reporting in 2024.

The revenue to be carved-out from Kemira was around EUR 495 million in 2023. This includes Oil & Gas revenue of EUR 453 million in 2023. The remaining carved-out revenue of around EUR 42 million consisted of non-Oil & Gas industrial polymer sales through indirect channels that are produced in manufacturing facilities within the scope of the transaction. The operative EBITDA of the divested portfolio was around EUR 71 million in 2023 representing around 14% operative EBITDA margin.

Additional alternative key figures

QUARTERLY SEGMENT INFORMATION, OIL & GAS DIVESTMENT ADJUSTED

2023 2023 2023 2023 2022 2022 2022 2022 2023 2022
10-12 7-9 4-6 1-3 10-12 7-9 4-6 1-3 1-12 1-12
EUR million

Revenue, O&G
divestment
adjusted
Pulp & Paper 418.8 403.6 421.2 504.6 556.2 537.3 487.6 446.5 1,748.2 2,027.7
Industry & 271.4 290.7 287.9 291.0 303.4 299.1 269.9 241.0 1,140.9 1,113.4
Water, O&G
divestment
adjusted
Total, O&G 690.2 694.3 709.1 795.6 859.7 836.4 757.5 687.6 2,889.0 3,141.1
divestment
adjusted

Operative
EBITDA, O&G
divestment
adjusted
Pulp & Paper 87.5 68.9 65.2 109.4 110.9 92.3 73.6 71.3 330.9 348.0
Industry & 61.8 75.0 68.1 60.1 52.0 46.2 37.5 34.7 265.0 170.3
Water, O&G
divestment
adjusted
Total, O&G 149.3 143.8 133.3 169.4 162.9 138.5 111.1 105.9 595.9 518.3
divestment
adjusted

Operative
EBIT, O&G
divestment
adjusted
Pulp & Paper 58.6 39.8 37.6 80.4 80.3 61.8 42.8 40.7 216.3 225.7
Industry & 45.1 58.0 52.0 44.1 35.1 29.7 21.9 19.4 199.2 106.0
Water, O&G
divestment
adjusted
Total, O&G 103.7 97.8 89.6 124.4 115.4 91.5 64.7 60.0 415.5 331.7
divestment
adjusted

Operative
ROCE rolling
12 months
avg, %, O&G
divestment
adjusted**
Pulp & Paper 16.9 18.5 19.9 19.9 16.9
Industry & 34.7 33.3 28.3 22.9 34.7
Water, O&G
divestment
adjusted
Total, O&G 22.4 23.0 22.4 20.8 22.4
divestment
adjusted

Capital
employed
rolling 12
months avg,
O&G
divestment
adjusted**
Pulp & Paper 1,282.0 1,288.2 1,310.2 1,333.4 1,282.0
Industry & 574.0 567.5 569.4 571.2 574.0
Water, O&G
divestment
adjusted
Total, O&G 1,856.0 1,855.7 1,879.6 1,904.7 1,856.0
divestment
adjusted

Capital
Expenditure
excl.
Acquisitions,
O&G
divestment
adjusted
Pulp & Paper 39.4 34.3 31.3 19.3 51.4 28.4 24.7 17.9 124.4 122.5
Industry & 26.6 16.3 13.1 7.3 27.5 10.8 9.4 6.0 63.4 53.7
Water, O&G
divestment
adjusted
Total, O&G 66.1 50.6 44.4 26.6 78.9 39.2 34.1 23.9 187.7 176.2
divestment
adjusted

GROUP FIGURES
Net working 278.9 245.3 262.1 294.5 255.7 320.3 349.6 317.1 278.9 255.7
capital,
eop*, O&G
divestment
adjusted**
*End of
period
**Assets
classified as
held-for-sale
in
December
2023,
therefore no
adjustment in
December 2023

More details of the transaction can be found in the stock exchange release published on December 4, 2023 (https://www.kemira.com/company/media/newsroom/releases/inside-information-kemira-divests-its-oil-gas-business/).

For more information, please contact:

Kemira Oyj

Mikko Pohjala, Vice President, Investor Relations

Tel.+358 40838 0709
mikko.pohjala@kemira.com

Kemira is a global leader in sustainable chemical solutions for water-intensive industries. Our customers include industrial and municipal water treatment, and pulp & paper industry among others. We provide the best-suited products and services to improve our customers' product quality, process, and resource efficiency. Our focus is on water treatment, renewable solutions, and digital services. In 2023, Kemira had annual revenue of around EUR 3.4 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd. www.kemira.com