Kemira Oyj

Quarterly Report • Apr 26, 2024

January-March 2024 Interim Report

Research & Development	8
Pulp & Paper	10

Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Cash Flow
Consolidated Statement of Changes in Equity
Group key figures
Definitions of key figures

6	Fair value of financial assets	32
7	Fair value of financial liabilities	33
8	Business combinations	34
9	Asset held for sale	34
10	Contingent liabilities and litigation	36
11	Related party	36
12	Basis of preparation and accounting principles	36
	Critical accounting estimates and judgments	36
13	Events after review period	36

Strong start to the year with a focused portfolio

First quarter:

Kemira divested its Oil & Gas (O&G)-related portfolio on February 2, 2024. All comparisons in this report are made to the comparison period, which includes the Oil & Gas related portfolio. Kemira's Q1 2024 figures include around EUR 45 million of revenue and around EUR 3 million of operative EBITDA from Oil & Gas. Kemira has also presented Oil & Gas divestment adjusted figures and performance in relevant parts of the report, which reflect the underlying business performance of Kemira's Pulp & Paper and Industry & Water segments. Kemira management follows the Oil & Gas divestment adjusted figures. The adjusted figures for the comparison period are also available in a separate stock exchange release published on February 9, 2024 and on kemira.com/investors. Kemira's outlook for 2024 includes the Oil & Gas-related portfolio until the closing date of the divestment, February 2, 2024.

Q1 2024 performance, unadjusted for Oil & Gas divestment

• Revenue decreased by 16% to EUR 763.3 million (906.0).
• Operative EBITDA decreased by 16% to EUR 162.5 million (192.6). The operative EBITDA margin was stable at a record-high level of 21.3% (21.3%). The operative EBITDA margin improved in the Industry & Water segment. EBITDA decreased by 16% to EUR 154.1 million (184.1). The differences between operative and reported figures are explained by items affecting comparability, which were mainly related to the divestment of Oil & Gas.
• Operative EBIT decreased by 17% to EUR 117.6 million (141.9). EBIT decreased by 18% to EUR 109.2 million (133.4).
• Cash flow from operating activities was strong at EUR 97.7 million (96.7).
• EPS (diluted) decreased by 19% to EUR 0.49 (0.60) mainly due to the divestment of Oil & Gas.

Q1 2024 performance, Oil & Gas divestment adjusted

• The Oil & Gas divestment adjusted revenue decreased by 10% to EUR 718.8 (795.6). Revenue in local currencies, excluding acquisitions and divestments, decreased by 9% mainly as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Sales volumes increased both year-on-year and sequentially. Sales prices were rather stable sequentially.
• The Oil & Gas divestment adjusted operative EBITDA decreased by 6% to EUR 159.2 (169.4) mainly as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. The adjusted operative EBITDA margin was strong at 22.2% (21.3%).
• The Oil & Gas divestment adjusted operative EBIT decreased by 8% to EUR 114.4 (124.4).

Outlook for 2024 (unchanged)

R e v e n u e

Kemira's revenue is expected to be between EUR 2,700 and EUR 3,200 million in 2024 (reported 2023 revenue: EUR 3,383.7 million).

O p e r a t i v e E B I T D A

Kemira's operative EBITDA is expected to be between EUR 480 and EUR 580 million in 2024 (reported 2023 operative EBITDA: EUR 666.7 million).

A s s u m p t i o n s b e h i n d o u t l o o k ( s p e c i f i e d )

Kemira's end-market demand (in volumes) is expected to grow slightly in 2024 following expected gradual demand recovery in the pulp and paper market. The water treatment market is expected to remain steady in 2024. Input costs are expected to remain rather stable during the year. The outlook assumes no major disruptions to Kemira's manufacturing operations, supply chain or Kemira's energy-generating assets in Finland. There is uncertainty related to the political strikes in Finland and their implications on Kemira's customers and Kemira. Foreign exchange rates are expected to remain at approximately current levels. The outlook for 2024 includes the Oil & Gas business until February 2, 2024, the closing date of the divestment transaction.

Kemira's President & CEO, Antti Salminen:

"I had the honor to start as Kemira's President and CEO in mid-February. I have spent my first months in the role meeting our people and customers as well as taking a holistic look at Kemira's strategy. Kemira is in excellent shape, which provides a strong foundation to build on. We have a number of strengths: a solid strategy, a resilient business model, committed employees, high customer satisfaction and a very strong financial position. The recent divestment of Oil & Gas further strengthens our business model and reduces cyclicality. It also clarifies our strategy and confirms our commitment to sustainability. We will continue to focus on profitable growth with water, renewable solutions, and digital services as our priority areas. Going forward, we will increasingly concentrate on faster execution to deliver results. Together with our committed team, we are now reviewing our strategic initiatives and targets to see how we can accelerate their execution and create even more value for our shareholders.

Looking at the performance of the first quarter, we started the year strongly with our focused portfolio. Market demand continued to recover gradually and we saw volume growth both year-on-year and sequentially in both segments. Organic revenue growth was negative as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Profitability was very strong and the operative EBITDA margin was stable year-on-year at a record-high level of 21.3% during Q1 2024. We had strong margin performance in both segments driven by successful cost management and higher sales volumes. In absolute terms, our operative EBITDA reached EUR 162 million, a great achievement considering we closed the divestment of Oil & Gas in February. Cash flow was also very strong during the quarter. The proceeds from the Oil & Gas divestment further strengthened our balance sheet, which is currently record strong with net debt / operative EBITDA at 0.6.

The pulp and paper market continued to recover gradually during Q1 2024. However, the political strikes in Finland forced some of Kemira's pulp and paper customers in Finland to curtail production. The strikes had a limited impact on the Pulp & Paper segment's Q1 2024 performance, which was robust. Sales volumes increased both sequentially and year-on-year despite the political strikes in Finland. The segment's revenue declined to EUR 423 million as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated

comparison period. Operative EBITDA margin was strong at 20.9%, which is an excellent achievement.

In Industry & Water, the water treatment market remained steady on both the municipal and industrial side. Kemira's Industry & Water segment continued its excellent performance during the quarter. Revenue was EUR 340 million, while the operative EBITDA margin reached a record-high of 21.8%. Kemira closed the divestment of Oil & Gas on February 2, 2024 and the positive impacts of the divestment were tangibly visible in our Q1 performance: improved operative EBITDA margin and return on capital employed.

Our Annual General Meeting held in March approved the Board of Director's dividend proposal of EUR 0.68 (2023: EUR 0.62) per share to be paid in two installments. The first installment was paid on April 4, 2024 and the second one will be paid early November. After a strong start to the year, we look at the remainder of 2024 with confidence. We have kept our outlook unchanged and continue to expect revenue to be between EUR 2,700 and EUR 3,200 million and operative EBITDA between EUR 480 and EUR 580 million."

K E Y F I G U R E S A N D R A T I O S

performance criteria in remuneration.

	Jan-Mar	Jan-Mar	Jan-Dec		Jan-Mar	Jan-Mar	Jan-Dec
EUR million	2024	2023	2023	EUR million	2024	2023	2023
Revenue	763.3	906.0	3,383.7	Capital employed*	2,092.9	2,244.5	2,155.5
Revenue, O&G divestment adjusted	718.8	795.6	2,889.0	Capital employed*, O&G divestment adjusted	1,874.2	1,904.7	1,856.0
Operative EBITDA	162.5	192.6	666.7	Operative ROCE*, %	21.0	19.4	21.5
Operative EBITDA, O&G divestment adjusted	159.2	169.4	595.9	Operative ROCE*, %, O&G divestment adjusted	21.6	20.8	22.4
Operative EBITDA, %	21.3	21.3	19.7	ROCE*, %	14.9	18.7	15.6
Operative EBITDA %, O&G divestment adjusted	22.2	21.3	20.6	Cash flow from operating activities	97.7	96.7	546.0
EBITDA	154.1	184.1	540.0	Capital expenditure excl. acquisition	26.2	29.1	204.9
EBITDA, %	20.2	20.3	16.0	Capital expenditure excl. acquisitions, O&G divestment adjusted	26.2	26.6	187.7
Operative EBIT	117.6	141.9	463.0	Capital expenditure	26.2	31.0	206.8
Operative EBIT, O&G divestment adjusted	114.4	124.4	415.5	Cash flow after investing activities	178.9	66.5	349.3
Operative EBIT, %	15.4	15.7	13.7	Equity ratio, % at period-end	47	45	48
Operative EBIT %, O&G divestment adjusted	15.9	15.6	14.4	Equity per share, EUR	10.29	10.05	10.84
EBIT	109.2	133.4	336.4	Gearing, % at period-end	23	45	32
EBIT, %	14.3	14.7	9.9	*12-month rolling average
Net profit for the period	79.0	95.4	211.3
Earnings per share, diluted, EUR	0.49	0.60	1.28

Jan-Mar	Jan-Mar	Jan-Dec		Jan-Mar	Jan-Mar	Jan-Dec
2024	2023	2023	EUR million	2024	2023	2023

Kemira's alternative performance measures should not be viewed in isolation from the equivalent IFRS measures, and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial information. All the figures in this report have been individually rounded, and consequently the sum of the individual figures may deviate slightly from the total figure presented.

Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments (=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and gearing, provide useful information about Kemira's comparable business performance and financial position. Selected alternative performance measures are also used as

Unless otherwise stated, all comparisons in this report are made to the corresponding period in 2023.

Financial performance in Q1 2024

Revenue decreased by 16%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 9% as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Sales volumes increased year-onyear following gradual recovery in end-market demand. Sequentially, adjusted for the Oil & Gas divestment, sales volumes increased despite the political strikes in Finland, while sales prices were rather stable.

	Jan-Mar 2024	Jan-Mar 2023		Organic	Currency	Acq. & div.
Revenue	EUR million	EUR million	∆%	growth*, %	impact, %	impact, %
Pulp & Paper	422.9	504.6 -16		-13	-1	-2
Industry & Water	340.5	401.5 -15		-2	0	-13
Total	763.3	906.0 -16		-9	0	-7
Industry & Water, O&G divestment adjusted	295.9	291.0 +2
Total, O&G divestment adjusted	718.8	795.6 -10

*Revenue growth in local currencies, excluding acquisitions and divestments. The column acquisitions and divestments includes contract manufacturing to Sterling Specialty Chemicals (acquirer of Kemira's Oil & Gas business.)

Geographically, the revenue split was as follows: EMEA (Europe, Middle East, Africa) 52% (53%), the Americas 39% (39%), and APAC (Asia Pacific) 9% (8%).

Operative EBITDA decreased by 16% to EUR 162.5 million (192.6) mainly due to the divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBITDA decreased by 6% to EUR 159.2 million (Oil & Gas divestment adjusted operative EBITDA in the comparison period 169.4). Operative EBITDA declined due to lower sales prices, particularly for energyintensive pulp and bleaching chemicals, which declined from an elevated comparison period. Lower sales prices were mostly compensated by successful cost management. The operative EBITDA margin was stable year-on-year at a record-high level of 21.3%. The operative EBITDA margin improved in Industry & Water and declined slightly in Pulp & Paper. The Oil & Gas adjusted operative EBITDA margin reached 22.2%.

Variance analysis, EUR million	Jan-Mar
Operative EBITDA, 2023	192.6
Sales volumes	+6.8
Sales prices	-82.9
Variable costs	+72.6
Fixed costs	-4.7
Currency exchange	-0.2
Others	-1.1
Divestments	-20.6
Operative EBITDA, 2024	162.5

	Jan-Mar 2024	Jan-Mar 2023		Jan-Mar 2024	Jan-Mar 2023
Operative EBITDA	EUR million	EUR million	∆%	%-margin	%-margin
Pulp & Paper	88.2	109.4	-19	20.9	21.7
Industry & Water	74.3	83.3	-11	21.8	20.7
Total	162.5	192.6	-16	21.3	21.3
Industry & Water, O&G divestment adjusted	71.0	60.1	+18	24.0	20.6
Total, O&G divestment adjusted	159.2	169.4	-6	22.2	21.3

EBITDA decreased by 16% to EUR 154.1 million (184.1). The difference between it and operative EBITDA is explained by items affecting comparability. Items affecting comparability were mainly related to the loss from the divestment of Oil & Gas. Items affecting comparability in the comparison were related to the loss from the divestment of most of our colorants business.

Items affecting comparability, EUR million	Jan-Mar 2024	Jan-Mar 2023
Within EBITDA	-8.4	-8.5
Pulp & Paper	-0.1	-8.5
Industry & Water	-8.3	0.0
Within depreciation, amortization and impairments	0.0	0.0
Pulp & Paper	0.0	0.0
Industry & Water	0.0	0.0
Total	-8.4	-8.5

Depreciation, amortization, and impairments were EUR 44.9 million (50.8), including the EUR 0.7 million (1.9) amortization of purchase price allocation.

Operative EBIT decreased by 17% compared to the previous year. The Oil & Gas divestment adjusted operative EBIT decreased by 8% to EUR 114.4 million (Oil & Gas divestment adjusted operative EBIT in the comparison period 124.4). EBIT decreased by 18%, and the difference between the two is explained by items affecting comparability, which were mainly related to the loss from the divestment of Oil & Gas. Items affecting comparability in the comparison were related to the loss from the divestment of most of our colorants business.

Net finance costs totaled EUR -8.3 million (-10.7). Income taxes were EUR -21.9 million (-27.2), with the reported tax rate being 22% (22%). Net profit for the period decreased by 17% mainly due to the divestment of Oil & Gas.

Financial position and cash flow

Cash flow from operating activities in January-March 2024 was strong, EUR 97.7 million (96.7). Net working capital remained rather stable. Cash flow after investing activities increased to EUR 178.9 million (66.5) following the proceeds from the Oil & Gas divestment, of which EUR 50 million will be received in Q1 2025. Kemira's supplementary pension fund Neliapila returned excess capital totaling EUR 12 million during Q1 2024.

At the end of the period, interest-bearing liabilities totaled EUR 947.8 million (981.4), including lease liabilities of EUR 126.9 million (142.6). The average interest rate of the Group's interestbearing loan portfolio (excluding leases) was 2.8% (2.5%), and the duration was 14 months (21). Fixed-rate loans accounted for 87% (89%) of net interest-bearing liabilities, including lease liabilities.

Short-term liabilities maturing in the next 12 months amounted to EUR 456.1 million. On March 31, 2024, cash and cash equivalents totaled EUR 572.2 million (273.2). The Group has a EUR 400 million undrawn committed credit facility maturing in 2026.

At the end of the period, Kemira Group's net debt was EUR 375.6 million (708.2), including lease liabilities. The equity ratio was 47% (45%), while gearing was 23% (45%). At the end of March 2024, net debt / operative EBITDA was at a record-strong level of 0.6.

Capital expenditure

In January-March 2024, capital expenditure excluding acquisitions decreased by 10% to EUR 26.2 million (29.1). The Oil & Gas divestment adjusted capital expenditure decreased by 2% to EUR 26.2 million (Oil & Gas divestment adjusted capital expenditure in the comparison period 26.6). Capital expenditure excluding acquisitions (capex) can be broken down as follows: expansion capex 14% (17%), improvement capex 36% (31%), and maintenance capex 50% (52%).

Research and Development

In January-March 2024, total research and development expenses were EUR 8.0 million (8.7), representing 1.0% (1.0%) of the Group's revenue. Sustainable and renewable offerings are cornerstones of Kemira's strategic priorities and currently represent over 50% of Kemira's R&D projects. In addition, over half of Kemira's ongoing R&D projects are done in collaboration with external partners.

Human resources

At the end of the period, Kemira Group had 4,690 employees (4,944). Kemira had 805 (778) employees in Finland, 1,707 (1,695) employees elsewhere in EMEA, 1,250 (1,535) in the Americas, and 928 (936) in APAC. The number of employees declined from the comparison period due to the divestment of Oil & Gas.

Sustainability

Kemira's sustainability work is guided by the UN's Sustainable Development Goals (SDGs) and covers economical, environmental, and social topics. Our focus is on Clean Water and Sanitation (SDG 6), Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12) and Climate Action (SDG 13). More information on sustainability at Kemira can be found in the 2023 Sustainability report. During Q1 2024, Kemira continued preparations for the Corporate Sustainability Reporting Directive requirements, which come into force from reporting year 2024 onwards.

S U S T A I N A B I L I T Y P E R F O R M A N C E I N Q 1 2 0 2 4 SAFETY

TRIF* in January-March 2024 was 4.5 (1-3/2023: 2.5). Kemira has started a global safety training program focusing on safety-critical elements and employee behavior to turn the negative TRIF trend.

PEOPLE

Kemira's target is to reach the top 10% cross-industry benchmark for Diversity, Equity & Inclusion (DEI) by the end of 2025. Our Diversity, Equity & Inclusion program is on track, and we launched a mentoring program as part of the Women's Network. Kemira also arranged the second FemPower Forum live virtual event on International Women's day with external thought leaders and over 500 employee participants. Further DEI people manager workshops were completed with almost 60% of all people managers trained so far. By the end of Q1 2024, 27% of white collar employees had completed the eLearning on DEI. Kemira also participated in Workplace Pride global benchmark process for the first time during Q1 2024.

CIRCULARITY

Kemira continued to progress its renewable solutions strategy. In March, Kemira announced a new strategic collaboration with PA Consulting, a global innovation and transformation consultancy. The collaboration aims at accelerating the development of a new renewable coating technology, supporting transformation into more sustainable food packaging.

WATER

Kemira's CDP Water Security 2023 score remained as B (Management level) even if the scoring criteria was stringent. Kemira's score is above Global, European and Chemical sector averages (all C). Based on the report, Kemira's overall water management improved compared to 2022.

CLIMATE

Kemira continued to prepare the submittal of its climate targets to SBTi for validation during Q2 2024, including an update to its climate target to reflect the divestment of Oil & Gas. Kemira's CDP Climate Change 2023 score remained as B (Management level), in line with the European regional average and the Chemicals sector average, and above the global average (C). Kemira received particularly good scores for the Scope 3 emissions measurement and reporting, as well as supplier engagement programs. Kemira also continued its efforts to decarbonize its energy sources during Q1 2024. In addition, Kemira continued to increase coverage of product carbon footprints (PCFs) during the quarter. The PCF portfolio now covers high-volume pulp and bleaching chemicals, primary polymer offering in EMEA as well as sizing and strength products in EMEA and APAC.

SDG	KPI	UNIT	2023	2022
	SAFETY TRIF 1.5 by the end of 2025 and 1.1 by the end of 2030 TRIF = total recordable injury frequency per million hours, Kemira + contractors		2.5	2.6
	PEOPLE Reach Glint top 10% cross industry norm for Diversity & Inclusion by the end of 2025		In the top 25%	Slightly below top 25%
	CIRCULARITY Reduce waste intensity by 15% by the end of 2030 from a 2019 baseline of 4.6 kilograms of disposed production waste per metric tonnes of production	kg/tonnes of production	4.4	4.6 1)
	Renewable solutions > EUR 500 million revenue by the end of 2030	EUR million	226	264
	WATER Reach the Leadership level (A-/A) in water management by the end of 2025 measured by CDP Water Security scoring methodology.	Rate scale A-D	B	B
	CLIMATE The Scope 1 and 2*** emissions -50% by the end of 2030 compared to 2018 baseline of 930 ktCO2e	ktCO2e	625	816

***Scope 1: Direct greenhouse gas emissions from Kemira's manufacturing sites, e.g. the generation of energy and emissions from the manufacturing processes. Scope 2: Indirect greenhouse gas emissions from external generation and purchase of electricity, heating, cooling, and steam.

1) The comparison period figure has been recalculated. More information in the Sustainability report.

Segments

P U L P & P A P E R

Pulp & Paper has unique expertise in applying chemicals and in supporting pulp and paper producers in innovating and constantly improving their operational efficiency as well as end product performance and quality. The segment develops and commercializes new products to meet the needs of its customers, thus ensuring a leading portfolio of products and services for the bleaching of pulp as well as the paper wet-end, focusing on packaging, board, and tissue. Pulp & Paper continues to leverage its strong application portfolio in North America and EMEA while also building a strong position in the emerging Asian and South American markets.

	Jan-Mar	Jan-Mar	Jan-Dec
EUR million	2024	2023	2023
Revenue	422.9	504.6	1,748.2
Operative EBITDA	88.2	109.4	330.9
Operative EBITDA, %	20.9	21.7	18.9
EBITDA	88.0	100.9	308.0
EBITDA, %	20.8	20.0	17.6
Operative EBIT	59.8	80.4	216.3
Operative EBIT, %	14.1	15.9	12.4
EBIT	59.6	71.9	193.4
EBIT, %	14.1	14.2	11.1
Capital employed*	1,282.0	1,333.4	1,282.0
Operative ROCE*, %	15.3	19.9	16.9
ROCE*, %	14.1	18.7	15.1
Capital expenditure excl. M&A	14.5	19.3	124.4
Capital expenditure incl. M&A	14.5	21.2	126.2
Cash flow after investing activities	61.9	53.8	216.3

*12-month rolling average

F I R S T Q U A R T E R :

The segment's revenue decreased by 16%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 13%, mainly as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Excluding pulp and bleaching chemicals, sales prices declined slightly. Sales volumes increased year-on-year in all product groups apart from pulp and bleaching chemicals. Currencies had a negative impact. Sequentially sales volumes increased despite the political strikes in Finland. Sales prices were rather stable sequentially.

In EMEA, revenue decreased by 24%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 22%. Sales prices decreased as sales prices for energy-intensive pulp and bleaching chemicals declined from an elevated comparison period. Excluding pulp

and bleaching chemicals, sales prices declined slightly. Sales volumes also declined due to lower demand for pulp and bleaching chemicals. In all other product groups, sales volumes increased. In the Americas, revenue decreased by 9%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 4%, mainly due to lower sales prices, particularly for pulp and bleaching chemicals. Sales volumes increased. In APAC, revenue decreased by 1%. Revenue in local currencies, excluding acquisitions and divestments, increased by 4%, due to higher sales volumes in all product groups. Sales prices decreased.

Operative EBITDA decreased by 19% as lower sales prices were not fully offset by successful variable cost management and higher sales volumes. The operative EBITDA margin was at the strong level of 20.9%. Operative EBITDA margin continued to improve in the APAC region. EBITDA decreased by 13%. The difference between it and operative EBITDA is explained by items affecting comparability. Items affecting comparability in the comparison period were related to the loss from the divestment of most of our colorants business.

I N D U S T R Y & W A T E R

Industry & Water supports municipalities and water-intensive industries in the efficient and sustainable use of resources. In water treatment, Kemira enables the optimization of various stages of the water cycle. Kemira completed the divestment of its Oil & Gas business on February 2, 2024.

	Jan-Mar	Jan-Mar	Jan-Dec
EUR million	2024	2023	2023
Revenue	340.5	401.5	1,635.5
Revenue, O&G divestment adjusted	295.9	291.0	1,140.9
Operative EBITDA	74.3	83.3	335.8
Operative EBITDA, O&G divestment adjusted	71.0	60.1	265.0
Operative EBITDA, %	21.8	20.7	20.5
Operative EBITDA %, O&G divestment adjusted	24.0	20.6	23.2
EBITDA	66.0	83.3	232.0
EBITDA, %	19.4	20.7	14.2
Operative EBIT	57.8	61.5	246.7
Operative EBIT, O&G divestment adjusted	54.6	44.1	199.2
Operative EBIT, %	17.0	15.3	15.1
Operative EBIT, %, O&G divestment adjusted	18.5	15.1	17.5
EBIT	49.5	61.5	143.0
EBIT, %	14.6	15.3	8.7
Capital employed*	810.9	911.1	873.5
Operative ROCE*, %	30.0	18.6	28.2
Operative ROCE*, %, O&G divestment adjusted	35.4	22.9	34.7
ROCE*, %	16.2	18.6	16.4
Capital expenditure excl. M&A	11.7	9.8	80.5
Capital expenditure excl. acquisitions, O&G divestment adjusted	11.7	7.3	63.4
Capital expenditure incl. M&A	11.7	9.8	80.5
Cash flow after investing activities	170.3	59.2	242.5

*12-month rolling average

F I R S T Q U A R T E R :

Kemira divested its Oil & Gas-related portfolio on February 2, 2024. Kemira's Q1 2024 figures include the Oil & Gas-related portfolio until February 2, 2024. The Oil & Gas related portfolio had a revenue of EUR 44.6 million and operative EBITDA of EUR 3.3 million until the closing of the divestment. Kemira has also presented Oil & Gas divestment adjusted figures, which reflect the underlying business performance of the segment.

The segment's revenue decreased by 15% following the divestment of Oil & Gas. Revenue in local currencies, excluding acquisitions and divestments, decreased by 2%. Sales prices declined as prices for caustic soda declined from an elevated comparison period. Sales prices remained stable in coagulants. Sales volumes increased, driven by coagulants. Currencies had no impact. Sequentially, adjusted for the Oil & Gas divestment, sales volumes increased and sales prices held relatively well.

In EMEA, revenue decreased by 7%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 5%. Sales prices decreased, particularly for caustic soda from an elevated comparison period. Sales volumes increased, in particular in coagulants. In the Americas, revenue decreased by 23% due to the divestment of Oil & Gas. Revenue in local

Figures in graphs are reported figures, 2023 figures have not been adjusted to reflect divestment of Oil & Gas.

currencies, excluding acquisitions and divestments, increased by 3%, due to higher sales prices, particularly in coagulants. Sales volumes were rather stable. In APAC, revenue decreased by 13%, albeit from a low base.

Operative EBITDA decreased by 11%, following the divestment of Oil & Gas. The operative EBITDA margin increased to 21.8%. The Oil & Gas divestment adjusted operative EBITDA increased by 18% to EUR 71.0 million (Oil & Gas adjusted operative EBITDA in the comparison period 60.1) following successful cost management and higher sales volumes. EBITDA decreased by 21%, and the difference to operative EBITDA is explained by items affecting comparability, which were mainly related to the loss from the divestment of Oil & Gas.

Kemira Oyj's shares and shareholders

On March 31, 2024, Kemira Oyj's share capital amounted to EUR 221.8 million and the number of shares was 155,342,557. Each share entitles the holder to one vote at the Annual General Meeting.

At the end of March 2024, Kemira Oyj had 49,246 registered shareholders (49,659 on December 31, 2023). Non-Finnish shareholders held 37.1% of the shares (34.3% on December 31, 2023), including nominee-registered holdings. Households owned 19.0% of the shares (19.0% on December 31, 2023). Kemira held 1,369,288 treasury shares (1,722,725 on December 31, 2023), representing 0.9% (1.1% on December 31, 2023) of all company shares.

Kemira Oyj's share price increased by 4% during the reporting period and closed at EUR 17.52 on the Nasdaq Helsinki at the end of March 2024 (16.79 on December 31, 2023). The shares registered a high of EUR 18.06 and a low of EUR 15.96 in January-March 2024, and the average share price was EUR 16.90. The company's market capitalization, excluding treasury shares, was EUR 2,698 million at the end of March 2024 (2,579 on December 31, 2023).

In January-March 2024, Kemira Oyj's share trading turnover on the Nasdaq Helsinki was EUR 272 million (EUR 320 million in January-March 2023). The average daily trading volume was 262,206 shares (309,236 in January-March 2023). The total volume of Kemira Oyj's share trading in January-March 2024 was 17 million shares (24 million shares in January-March 2023), 14% (17% in January-March 2023) of which was executed on other trading platforms (e.g. Turquoise, CBOE DXE). Source: Nasdaq and Kemira.com.

F L A G G I N G N O T I F I C A T I O N S

January 13, 2024: Solidium Oy's shareholding decreased below 5% as Solidium Oy sold all the Kemira shares in its possession.

Decisions by the Annual General Meeting

Kemira Oyj's Annual General Meeting, held on March 20, 2024, approved the financial statements, made an advisory resolution on the remuneration report and the remuneration policy, and discharged the members of the Board of Directors, the President & CEO, and the CEO's deputy from liability for the financial year 2023.

The Annual General Meeting elected eight members to the Board of Directors. The Annual General Meeting re-elected Tina Sejersgård Fanø, Werner Fuhrmann, Matti Kähkönen, Timo Lappalainen, Fernanda Lopes Larsen, Annika Paasikivi, Kristian Pullola, and Mikael Staffas as members to the Board of Directors. Matti Kähkönen was elected as the Chair of the Board of Directors and Annika Paasikivi was elected as the Vice Chair.

The Annual General Meeting issued the advisory resolution on the acceptance of the Remuneration Report 2023 and also on the acceptance of the Remuneration Policy for the Governing Bodies. The report and and the policy are available on the company's website at kemira.com/agm2024.

The Annual General Meeting decided that the remuneration paid to the members of the Board of Directors will be as follows: the Chair will receive EUR 125,000 per year, the Vice Chair and the Chair of the Audit Committee EUR 70,000 per year, the Chair of the Personnel and Remuneration Committee (if the person is not the Chair or Vice Chair of the Board of Directors) EUR 65,000 per year, and the other members EUR 54,000 per year. A fee payable for each meeting of the Board of Directors and the Board Committees will be paid based on the method and place of the meeting as follows: participating remotely or in a meeting arranged in the member's country of residence EUR 750, participating in a meeting arranged on the same continent as the member's country of residence EUR 1,500 and participating in a meeting arranged in a different continent than the member's country of residence EUR 3,000. Travel expenses will be paid according to Kemira's travel policy. In addition, the Annual General Meeting decided that the annual fee be paid as a combination of the company's shares and cash in such a manner that 40% of the annual fee is paid with the company's shares owned by the company or, if this is not possible, shares purchased from the market, and 60% is paid in cash. The shares will be transferred to the members of the Board of Directors and, if necessary, acquired directly on behalf of the members of the Board of Directors within two weeks from the release of Kemira's Interim Report January 1 – March 31, 2024. The meeting fees are to be paid in cash.

The Annual General Meeting approved the Board of Directors' dividend proposal of EUR 0.68 per share for the financial year 2023. The dividend will be paid in two installments. The first installment of EUR 0.34 per share was paid to a shareholder who was registered in the company's shareholder register maintained by Euroclear Finland Ltd on the record date for

the dividend payment, March 22, 2024. The first installment of the dividend was paid on April 4, 2024. The second installment EUR 0.34 per share will be paid in November 2024. The second installment will be paid to a shareholder who is registered in the company's shareholder register maintained by Euroclear Finland Ltd on the record date for the dividend payment. The Board of Directors will decide the record date and the payment date for the second installment at its meeting in October 2024. The record date is planned to be October 29, 2024, and the dividend payment date November 5, 2024, at the earliest. Kemira will announce the resolution of the Board of Directors separately and confirm the relevant record and payment dates in this announcement.

The Annual General Meeting decided to amend the Articles of Association in full to better reflect market practices and to update certain wordings and phrases to reflect the current applicable regulations.

The Annual General Meeting authorized the Board of Directors to decide upon the repurchase of up to a maximum of 6,500,000 of the company's own shares ("Share repurchase authorization"). Shares shall be repurchased by using unrestricted equity either through a tender offer with equal terms to all shareholders at a price determined by the Board of Directors or in proportion to the existing shareholdings of the company's shareholders in public trading on the Nasdaq Helsinki Ltd (the "Helsinki Stock Exchange") at the market price quoted at the time of the repurchase. The price paid for the shares repurchased through a tender offer under the authorization shall be based on the market price of the company's shares in public trading. The minimum price to be paid would be the lowest market price of the share quoted in public trading during the authorization period and the maximum price the highest market price quoted during the authorization period. Shares shall be acquired and paid for in accordance with the Rules of the Helsinki Stock Exchange and Euroclear Finland Oy as well as any other applicable regulations. Shares may be repurchased to be used in implementing or financing mergers and acquisitions, developing the company's capital structure, improving the liquidity of the company's shares, or to be used for the payment of the annual fee payable to the members of the Board of Directors or implementing the company's share-based incentive plans. In order to realize the aforementioned purposes, the shares acquired may be retained, transferred further, or cancelled by the company. The Board of Directors shall decide upon the other terms related to the share repurchase. The Share repurchase authorization is valid until the end of the next Annual General Meeting.

The Annual General Meeting authorized the Board of Directors to decide to issue a maximum of 15,600,000 new shares and/or transfer of a maximum of 7,800,000 company's own shares held by the company ("Share issue authorization"). The new shares may be issued and the company's own shares held by the company may be transferred either for consideration or without consideration. The new shares may be issued and the company's own shares held by the company may be transferred to the company's shareholders in proportion to their current shareholdings in the company, or by disapplying the shareholders' pre-emption right, through a directed share issue, if the company has a weighty financial reason to do so, such as financing or implementing mergers and acquisitions, developing the capital structure of the company, improving the liquidity of the company's shares or, if it is justified, for the payment of the annual fee payable to the members of the Board of Directors or implementing the company's share-based incentive plans. The directed share issue may be carried out without consideration only in connection with the implementation of the company's share-based incentive plans. The subscription price of new shares shall be recorded to the invested unrestricted equity reserves. The consideration payable for the company's own shares shall be recorded in the invested unrestricted equity reserves. The Board of Directors shall decide upon the other terms related to the share issues. The Share issue authorization is valid until May 31, 2025.

Ernst & Young Oy was elected as the company's auditor with Mikko Rytilahti, APA, acting as the principal auditor. The Auditor's fees will be paid against an invoice approved by Kemira. Ernst & Young Oy was also elected as the sustainability assurance provider with Mikko Rytilahti, APA and Authorized Sustainability Auditor, assuring the sustainability report. The sustainability reporting assurance provider's fees will be paid based on invoicing approved by the company.

Board committees

On March 20, 2024, the Board of Directors of Kemira Oyj elected members among themselves for the Audit Committee and the Personnel and Remuneration Committee. The Board's Audit Committee members are Werner Fuhrmann, Timo Lappalainen, Fernanda Lopes Larsen and Kristian Pullola. The Audit Committee is chaired by Kristian Pullola. The Board's Personnel and Remuneration Committee members are Tina Sejersgård Fanø, Timo Lappalainen, Annika Paasikivi and Mikael Staffas. The Personnel and Remuneration Committee is chaired by Annika Paasikivi.

Short-term risks and uncertainties

There have been changes to Kemira's short-term risks and uncertainties compared to the situation on December 31, 2023. Political strikes in Finland forced a significant part of Finnish pulp and paper mills to curtail or to stop production in March and early April 2024. Also Kemira was forced to curtail production at some of its manufacturing sites in Finland. The political strikes ended in early April. The strikes had a limited impact on Kemira's Q1 2024 financial performance. However, there is uncertainty as to whether the political strikes will continue, which could have implications on Kemira's customers and also on Kemira.

A detailed description of Kemira's risk management principles is available on the company's website at kemira.com > investors > risks and uncertainties. Financial risks are described in the Notes to the Financial Statements for the year 2023.

Changes in Kemira's Management Board

On February 9, 2024 Kemira announced that Harri Eronen had been appointed as Interim President of Kemira's Pulp & Paper segment and a member of Kemira's management board as of February 12, 2024. The former President of the Pulp & Paper segment Antti Salminen started as President & CEO of Kemira on February 12, 2024.

Other events during the review period

On March 18, 2024, Kemira announced it had received 115,000 shares from Kemira's supplementary pension fund Neliapila. The shares were transferred to Kemira gratuitously as part of the return of excess capital. Neliapila returned excess capital of EUR 12 million in total to Kemira during Q1 2024.

Acquisitions and divestments

On February 2, 2024 Kemira announced it had completed the divestment of its Oil & Gasrelated portfolio to Sterling Specialty Chemicals LLC, a US subsidiary of Artek Group, a global industrial chemicals group based in India. Approximately 250 employees transferred to the buyer as part of the transaction, which includes Kemira's manufacturing facilities in Mobile, Columbus and Aberdeen in the United States and the novel liquid polymer (NLP)

manufacturing assets in Botlek, the Netherlands. The closing of the Teesport manufacturing facility in the United Kingdom is expected to happen later, subject to site-specific closing conditions.

Events after the review period

No significant events after the review period.

Outlook for 2024 (unchanged)

R E V E N U E

Kemira's revenue is expected to be between EUR 2,700 million and EUR 3,200 million in 2024 (reported 2023 revenue: EUR 3,383.7 million).

O P E R A T I V E E B I T D A

Kemira's operative EBITDA is expected to be between EUR 480 and EUR 580 million in 2024 (reported 2023 operative EBITDA: EUR 666.7 million).

A S S U M P T I O N S B E H I N D T H E O U T L O O K ( S P E C I F I E D )

Kemira's end-market demand (in volumes) is expected to grow slightly in 2024 following expected gradual demand recovery in the pulp and paper market. The water treatment market is expected to remain steady in 2024. Input costs are expected to remain rather stable during the year. The outlook assumes no major disruptions to Kemira's manufacturing operations, supply chain or Kemira's energy-generating assets in Finland. There is uncertainty related to the political strikes in Finland and their implications on Kemira's customers and Kemira. Foreign exchange rates are expected to remain at approximately current levels.The outlook for 2024 includes the Oil & Gas business until February 2, 2024, the closing date of the divestment transaction.

Financial targets

Kemira aims for above-market revenue growth, with an operative EBITDA margin of 15-18%. The target for gearing is below 75%.

Helsinki, April 25, 2024

Kemira Oyj Board of Directors

All forward-looking statements in this review are based on the management's current expectations and beliefs about future events. Actual results may differ materially from the expectations and beliefs contained in the statements.

Financial reporting schedule 2024

Half-year financial report January-June 2024 July 17, 2024 Interim report January-September 2024 October 25, 2024

Capital Markets Day 2024

Kemira's Capital Markets Day will be arranged on September 26, 2024. Kemira will give an update on the strategy's next steps and also on the financial targets in conjunction with the Capital Markets Day.

Webcast and conference call for analysts, investors and media

Kemira will arrange a webcast for analysts, investors and the media on Friday, April 26, 2024, starting at 10.30 am EEST (8.30 am UK time). During the webcast, Kemira's President & CEO, Antti Salminen and CFO Petri Castrén, will present the results. The webcast will be held in English and can be followed at kemira.com/investors. The presentation material and a recording of the webcast will be available on the above-mentioned company website.

You can attend the Q&A session via conference call. You can access the teleconference by registering on the following link: http://palvelu.flik.fi/teleconference/?id=10010851

After registration you will be provided with phone numbers and a conference ID to access the conference. If you wish to ask a question please dial *5 on your telephone keypad to enter the queue.

Kemira Group - Financials of interim report 2024

Consolidated income statement

EUR million	1-3/2024	1-3/2023	1-12/2023
Revenue	763.3	906.0	3,383.7
Other operating income	0.4	2.3	8.6
Operating expenses	-609.5	-724.0	-2,852.3
Share of profit or loss of associates	-0.2	-0.3	0.1
EBITDA	154.1	184.1	540.0
Depreciation, amortization and impairments	-44.9	-50.8	-203.6
Operating profit (EBIT)	109.2	133.4	336.4
Finance costs, net	-8.3	-10.7	-44.4
Profit before taxes	100.9	122.7	292.0
Income taxes	-21.9	-27.2	-80.7
Net profit for the period	79.0	95.4	211.3
Net profit attributable to
Equity owners of the parent company	75.8	92.9	199.1
Non-controlling interests	3.2	2.5	12.2
Net profit for the period	79.0	95.4	211.3
Earnings per share, basic, EUR	0.49	0.61	1.30
Earnings per share, diluted, EUR	0.49	0.60	1.28

Consolidated statement of comprehensive income

EUR million	1-3/2024	1-3/2023	1-12/2023
Net profit for the period	79.0	95.4	211.3
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	3.2	-11.4	-16.9
Cash flow hedges	-11.4	-45.7	-54.1
Items that will not be reclassified subsequently to profit or loss
Other shares	-37.3	-69.7	-61.3
Remeasurements of defined benefit plans	—	—	18.9
Other comprehensive income for the period, net of tax	-45.5	-126.8	-113.4
Total comprehensive income for the period	33.5	-31.4	97.9
Total comprehensive income attributable to
Equity owners of the parent company	30.3	-34.0	84.9
Non-controlling interests	3.2	2.6	13.0
Total comprehensive income for the period	33.5	-31.4	97.9

Consolidated balance sheet

EUR million	3/31/2024	3/31/2023	12/31/2023
ASSETS
Non-current assets
Goodwill	483.4	509.8	480.9
Other intangible assets	50.2	59.4	51.1
Property, plant and equipment	928.8	1,060.9	939.6
Right-of-use assets	128.3	139.3	123.0
Investments in associates	4.6	4.6	4.8
Other shares	258.7	294.8	305.4
Deferred tax assets	28.3	29.0	31.8
Other financial assets	7.1	15.9	7.9
Receivables of defined benefit plans	95.1	79.0	106.3
Total non-current assets	1,984.6	2,192.7	2,050.9
Current assets
Inventories	292.6	421.5	281.8
Loan receivables	46.1	0.3	0.3
Trade receivables and other receivables	449.4	517.6	468.2
Current income tax assets	56.5	20.1	29.9
Cash and cash equivalents	572.2	273.2	402.5
Total current assets	1,416.9	1,232.7	1,182.7
Assets classified as held-for-sale	7.4	11.3	255.6
Total assets	3,408.9	3,436.7	3,489.3

EUR million	3/31/2024	3/31/2023	12/31/2023
EQUITY AND LIABILITIES
Equity
Equity attributable to equity owners of the parent company	1,583.8	1,544.0	1,664.8
Non-controlling interests	18.0	17.3	19.4
Total equity	1,601.9	1,561.3	1,684.2
Non-current liabilities
Interest-bearing liabilities	491.7	832.6	615.7
Other financial liabilities	11.4	10.6	10.8
Deferred tax liabilities	68.2	93.5	81.3
Liabilities of defined benefit plans	68.7	66.7	69.8
Provisions	35.6	36.3	37.8
Total non-current liabilities	675.6	1,039.8	815.4
Current liabilities
Interest-bearing liabilities	456.1	148.8	322.1
Trade payables and other liabilities	586.8	633.2	489.4
Current income tax liabilities	62.8	33.5	56.6
Provisions	15.4	19.5	16.9
Total current liabilities	1,121.1	835.0	884.9
Total liabilities	1,796.7	1,874.7	1,700.3
Liabilities classified as held-for-sale	10.3	0.7	104.8
Total equity and liabilities	3,408.9	3,436.7	3,489.3

Consolidated cash flow statement

EUR million	1-3/2024	1-3/2023	1-12/2023
Cash flow from operating activities
Net profit for the period	79.0	95.4	211.3
Total adjustments	81.3	98.5	429.4
Cash flow before change in net working capital	160.3	193.9	640.7
Change in net working capital	-9.3	-50.8	14.9
Cash generated from operations before financing items and taxes	151.0	143.1	655.6
Finance expenses, net and dividends received	-15.2	2.4	-18.8
Income taxes paid	-38.2	-48.8	-90.8
Net cash generated from operating activities	97.7	96.7	546.0
Cash flow from investing activities
Purchases of subsidiaries and business acquisitions, net of cash acquired	—	-1.9	-1.9
Other capital expenditure	-26.2	-29.1	-204.9
Proceeds from sale of subsidiaries, business and assets	153.7	0.6	9.7
Decrease (+) / increase (-) in loan receivables	-46.2	0.3	0.4
Net cash used in investing activities	81.2	-30.2	-196.7

EUR million	1-3/2024	1-3/2023	1-12/2023
Cash flow from financing activities
Proceeds from non-current interest-bearing liabilities	—	0.1	0.2
Repayments of non-current liabilities	—	—	—
Short-term financing, net increase (+) / decrease (-)	2.6	-32.5	-50.7
Repayments of lease liabilities	-8.7	-9.2	-37.3
Dividends paid	-4.5	0.0	-103.5
Net cash used in financing activities	-10.7	-41.6	-191.3
Net decrease (-) / increase (+) in cash and cash equivalents	168.2	24.9	158.0
Cash and cash equivalents at end of period	572.2	273.2	402.5
Exchange gains (+) / losses (-) on cash and cash equivalents	1.5	-2.3	-6.1
Cash and cash equivalents at beginning of period	402.5	250.6	250.6
Net decrease (-) / increase (+) in cash and cash equivalents	168.2	24.9	158.0

Consolidated statement of changes in equity

	Equity attributable to equity owners of the parent company
EUR million	Share capital	Share premium	Fair value and other reserves	Unrestricted equity reserve	Exchange differences	Treasury shares	Retained earnings	Total	Non controlling interests	Total Equity
Equity on January 1, 2024	221.8	257.9	163.4	196.3	-53.8	-11.6	890.9	1,664.8	19.4	1,684.2
Net profit for the period	—	—	—	—	—	—	75.8	75.8	3.3	79.0
Other comprehensive income, net of tax	—	—	-48.7	—	3.2	—	—	-45.5	0.0	-45.5
Total comprehensive income	—	—	-48.7	—	3.2	—	75.8	30.3	3.2	33.5
Transactions with owners
Dividends paid	—	—	—	—	—	—	-104.7 1)	-104.7	-4.5	-109.2
Treasury shares issued to the target group of a share-based incentive plan	—	—	—	—	—	3.2	—	3.2	—	3.2
Returned shares ⁽²	—	—	—	—	—	-1.9	—	-1.9	—	-1.9
Share-based payments	—	—	—	—	—	—	-7.8	-7.8	—	-7.8
Total transactions with owners	—	—	—	—	—	1.3	-112.5	-111.2	-4.5	-115.7
Equity on March 31, 2024	221.8	257.9	114.6	196.3	-50.6	-10.3	854.2	1,583.8	18.0	1,601.9

1) On March 20, 2024, the Annual General Meeting approved a dividend of EUR 0.68 per share. The dividend is paid in two installments. The first installment of EUR 0.34 dividend per share was paid on April 4, 2024. The second installment of EUR 0.34 dividend per share will be paid in November 2024.

2) As part of Pension fund Neliapila surplus return, 115,000 treasury shares were transferred to Kemira Oyj.

Kemira had in its possession 1,369,288 treasury shares on March 31, 2024. The average share price of treasury shares was EUR 7.58, and they represented 0.9% of the share capital and the aggregate number of votes conferred by all shares. The aggregate par value of the treasury shares is EUR 2.0 million.

The share premium is a reserve accumulated through subscriptions entitled by the management stock option program 2001. This reserve is based on the old Finnish Companies Act (734/1978), and the value of the reserve will no longer change. The fair value reserve is a reserve accumulating based on other shares measured at fair value and hedge accounting. Other reserves originate from the local requirements of subsidiaries. The unrestricted equity reserve includes other equity-type investments and the subscription price of shares to the extent that they will not, based on a specific decision, be recognized in share capital.

	Equity attributable to equity owners of the parent company
EUR million	Share capital	Share premium	Fair value and other reserves	Unrestricted equity reserve	Exchange differences	Treasury shares	Retained earnings	Total	Non controlling interests	Total Equity
Equity on January 1, 2023	221.8	257.9	278.8	196.3	-36.0	-13.4	764.5	1,669.9	14.7	1,684.6
Net profit for the period	—	—	—	—	—	—	92.9	92.9	2.6	95.4
Other comprehensive income, net of tax	—	—	-115.5	—	-11.6	—	0.1	-126.9	0.1	-126.8
Total comprehensive income	—	—	-115.5	—	-11.6	—	93.0	-34.0	2.6	-31.4
Transactions with owners
Dividends paid	—	—	—	—	—	—	-95.2 3)	-95.2	—	-95.2
Treasury shares issued to the target group of a share-based incentive plan	—	—	—	—	—	1.7	—	1.7	—	1.7
Share-based payments	—	—	—	—	—	—	1.6	1.6	—	1.6
Total transactions with owners	—	—	—	—	—	1.7	-93.6	-91.9	—	-91.9
Equity on March 31, 2023	221.8	257.9	163.3	196.3	-47.6	-11.7	763.9	1,544.0	17.3	1,561.3

3) On March 24, 2023, the Annual General Meeting approved a dividend of EUR 0.62 per share. The dividend was paid in two installments. The payment date of the dividend of EUR 0.31 for the first installment was April 5, 2023. The payment date of the dividend of EUR 0.31 for the second installment was November 2, 2023.

Group key figures

Kemira provides certain financial performance measures (alternative performance measures) that are not defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments (=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities and gearing provide useful information about Kemira's comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration.

Kemira's alternative performance measures should not be viewed in isolation from the equivalent IFRS measures and alternative performance measures should instead be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial information.

	2024	2023	2023	2023	2023	2023
	1-3	10-12	7-9	4-6	1-3	1-12
Income statement and profitability
Revenue, EUR million	763.3	808.8	828.7	840.1	906.0	3,383.7
Revenue, O&G divestment adjusted, EUR million	718.8	690.2	694.3	709.1	795.6	2,889.0
Operative EBITDA, EUR million	162.5	162.7	160.3	151.0	192.6	666.7
Operative EBITDA, %	21.3	20.1	19.3	18.0	21.3	19.7
Operative EBITDA, O&G divestment adjusted, EUR million	159.2	149.3	143.8	133.3	169.4	595.9
Operative EBITDA, O&G divestment adjusted, %	22.2	21.6	20.7	18.8	21.3	20.6
EBITDA, EUR million	154.1	51.3	157.2	147.4	184.1	540.0
EBITDA, %	20.2	6.3	19.0	17.5	20.3	16.0
Items affecting comparability in EBITDA, EUR million	-8.4	-111.4	-3.1	-3.7	-8.5	-126.7
Operative EBIT, EUR million	117.6	112.6	107.6	100.9	141.9	463.0
Operative EBIT, %	15.4	13.9	13.0	12.0	15.7	13.7
Operative EBIT, O&G divestment adjusted, EUR million	114.4	103.7	97.8	89.6	124.4	415.5
Operative EBIT, O&G divestment adjusted, %	15.9	15.0	14.1	12.6	15.6	14.4
Operating profit (EBIT), EUR million	109.2	1.3	104.5	97.2	133.4	336.4
Operating profit (EBIT), %	14.3	0.2	12.6	11.6	14.7	9.9
Items affecting comparability in EBIT, EUR million	-8.4	-111.4	-3.1	-3.7	-8.5	-126.7
Amortization and impairments of Intangible assets	-3.6	-4.4	-5.0	-4.7	-4.8	-19.0
Of which purchase price allocation (PPA) related	-0.7	-1.4	-1.8	-1.8	-1.9	-6.9
Depreciations and impairments of Property, plant and equipment	-32.9	-36.1	-37.9	-35.7	-36.7	-146.5
Depreciations of right-of-use assets	-8.4	-9.5	-9.8	-9.7	-9.2	-38.1

	2024	2023	2023	2023	2023	2023
	1-3	10-12	7-9	4-6	1-3	1-12
Return on investment (ROI), %	15.9	0.3	14.8	13.6	18.9	11.6
Capital employed, EUR million 1)	2,092.9	2,155.5	2,188.9	2,221.5	2,244.5	2,155.5
Operative ROCE, %	21.0	21.5	21.6	21.0	19.4	21.5
Operative ROCE, %, O&G divestment adjusted	21.6	22.4	23.0	22.4	20.8	22.4
ROCE, %	14.9	15.6	21.3	20.1	18.7	15.6
Cash flow
Net cash generated from operating activities, EUR million	97.7	133.3	173.1	142.9	96.7	546.0
Capital expenditure, EUR million	26.2	72.7	54.4	48.8	31.0	206.8
Capital expenditure excl. acquisitions, EUR million	26.2	72.7	54.4	48.8	29.1	204.9
Capital expenditure excl. acquisitions / revenue, %	3.4	9.0	6.6	5.8	3.2	6.1
Cash flow after investing activities, EUR million	178.9	60.5	119.0	103.3	66.5	349.3
Balance sheet and solvency
Equity ratio, %	47.0	48.3	48.3	48.0	45.5	48.3
Gearing, %	23.4	31.8	33.8	40.7	45.4	31.8
Interest-bearing net liabilities, EUR million	375.6	535.2	566.5	665.5	708.2	535.2
Personnel
Personnel at end of period	4,690	4,915	4,919	4,989	4,944	4,915
Personnel (average)	4,767	4,909	4,964	4,970	4,940	4,946
Key exchange rates at end of period
USD	1.081	1.105	1.059	1.087	1.088	1.105
CAD	1.467	1.464	1.423	1.442	1.474	1.464
SEK	11.525	11.096	11.533	11.806	11.281	11.096
CNY	7.814	7.851	7.735	7.898	7.476	7.851
BRL	5.403	5.362	5.307	5.279	5.516	5.362

	2024	2023	2023	2023	2023	2023
	1-3	10-12	7-9	4-6	1-3	1-12
Per share figures, EUR
Earnings per share (EPS), basic 2)	0.49	-0.20	0.47	0.42	0.61	1.30
Earnings per share (EPS), diluted 2)	0.49	-0.20	0.46	0.42	0.60	1.28
Net cash generated from operating activities per share 2)	0.64	0.87	1.13	0.93	0.63	3.56
Equity per share 2)	10.29	10.84	10.81	10.51	10.05	10.84
Number of shares (1,000,000)
Average number of shares, basic 2)	153.7	153.6	153.6	153.6	153.4	153.6
Average number of shares, diluted 2)	155.3	155.1	155.1	155.1	155.0	155.1
Number of shares at end of period, basic 2)	154.0	153.6	153.6	153.6	153.6	153.6
Number of shares at end of period, diluted 2)	155.2	155.3	155.0	155.1	155.1	155.3

1) 12-month rolling average

2) Number of shares outstanding, excluding the number of treasury shares.

Definitions of key figures

KEY FIGURES	DEFINITION OF KEY FIGURES	KEY FIGURES	DEFINITION OF KEY FIGURES
Operative EBITDA	Operating profit (EBIT) + depreciation and amortization = + impairments +/- items affecting comparability	Cash flow after investing activities	Net cash generated from operating activities = + net cash used in investing activities
Items affecting comparability 1)	Restructuring and streamlining programs + transaction and integration expenses in acquisitions = + divestment of businesses and other disposals + other items	Equity ratio, %	Total equity x 100 = Total assets - prepayments received
Operative EBIT	Operating profit (EBIT) +/- items affecting = comparability	Gearing, %	Interest-bearing net liabilities x 100 = Total equity
Return on investment (ROI), %	(Profit before taxes + interest expenses + other financial expenses) x 100 = Total assets - non-interest-bearing liabilities 2)	Interest-bearing net liabilities	Interest-bearing liabilities = - cash and cash equivalents
Operative return on capital employed	Operative EBIT x 100 3) =	Earnings per share (EPS)	Net profit attributable to equity owners of the parent company =
(Operative ROCE), %	Capital employed 4)		Average number of shares
Return on capital employed (ROCE), %	EBIT x 100 3) =	Net cash generated from operating	Net cash generated from operating activities =
	Capital employed 4)	activities per share	Average number of shares
Capital employed	Property, plant and equipment + right-of-use assets + = intangible assets + net working capital + investments	Equity per share	Equity attributable to equity owners of the parent company at end of period =
	in associates		Number of shares at end of period
Net working capital	Inventories + trade receivables + other receivables, excluding derivatives, accrued = interest income and other financing items - trade payables - other liabilities, excluding derivatives, accrued interest expenses and other financing items

1) Financial performance measures that are not defined by IFRS may include items of income and expenses that affect the comparability of the financial reporting of Kemira Group. Restructuring and streamlining programs, transaction and integration expenses in acquisitions, divestments of businesses, and other disposals are considered to be the most common items affecting comparability.

2) Average

3) Operating profit (EBIT) taken into account for a rolling 12-month period ending at the end of the review period.

4) 12-month rolling average

Reconciliation to IFRS figures

	2024	2023	2023	2023	2023	2023
EUR million	1-3	10-12	7-9	4-6	1-3	1-12
ITEMS AFFECTING COMPARABILITY IN EBITDA AND IN EBIT
Operative EBITDA, O&G divestment adjusted	159.2	149.3	143.8	133.3	169.4	595.9
O&G divestment adjustment	3.3	13.4	16.5	17.7	23.2	70.8
Operative EBITDA	162.5	162.7	160.3	151.0	192.6	666.7
Restructuring and streamlining programs	-0.2	0.1	0.0	-1.0	0.0	-0.9
Transaction and integration expenses in acquisition	-0.1	-0.1	0.0	0.0	-0.1	-0.2
Divestment of businesses and other disposals	-7.9	-111.3	-3.1	-2.6	-8.9	-125.9
Other items	-0.1	0.0	0.0	0.0	0.4	0.4
Total items affecting comparability	-8.4	-111.4	-3.1	-3.7	-8.5	-126.7
EBITDA	154.1	51.3	157.2	147.4	184.1	540.0
Operative EBIT, O&G divestment adjusted	114.4	103.7	97.8	89.6	124.4	415.5
O&G divestment adjustment	3.2	8.9	9.9	11.3	17.4	47.6
Operative EBIT	117.6	112.6	107.6	100.9	141.9	463.0
Total items affecting comparability in EBITDA	-8.4	-111.4	-3.1	-3.7	-8.5	-126.7
Items affecting comparability in depreciation, amortization and impairments	0.0	0.0	0.0	0.0	0.0	0.0
Operating profit (EBIT)	109.2	1.3	104.5	97.2	133.4	336.4
ROCE AND OPERATIVE ROCE
Operative EBIT	117.6	112.6	107.6	100.9	141.9	463.0
Operating profit (EBIT)	109.2	1.3	104.5	97.2	133.4	336.4
Capital employed ¹⁾	2,092.9	2,155.5	2,188.9	2,221.5	2,244.5	2,155.5
Operative ROCE, %	21.0	21.5	21.6	21.0	19.4	21.5
Operative ROCE, %, O&G divestment adjusted	21.6	22.4	23.0	22.4	20.8	22.4
ROCE, %	14.9	15.6	21.3	20.1	18.7	15.6

	2024	2023	2023	2023	2023	2023
EUR million	1-3	10-12	7-9	4-6	1-3	1-12
NET WORKING CAPITAL
Inventories	292.6	281.8	347.5	383.9	421.5	281.8
Trade receivables and other receivables	449.4	468.2	496.8	494.4	517.6	468.2
Excluding financing items in other receivables	-12.1	-18.6	-10.0	-21.9	-23.7	-18.6
Trade payables and other liabilities	586.8	489.4	569.4	552.6	633.2	489.4
Excluding dividend liability and financing items in other liabilities	-143.3	-37.0	-83.1	-78.2	-127.7	-37.0
Net working capital	286.4	278.9	347.9	382.0	409.9	278.9
INTEREST-BEARING NET LIABILITIES
Non-current interest-bearing liabilities	491.7	615.7	641.8	639.6	832.6	615.7
Current interest-bearing liabilities	456.1	322.1	327.8	325.5	148.8	322.1
Interest-bearing liabilities	947.8	937.8	969.6	965.1	981.4	937.8
Cash and cash equivalents	572.2	402.5	403.1	299.5	273.2	402.5
Interest-bearing net liabilities	375.6	535.2	566.5	665.5	708.2	535.2

1) 12-month rolling average

Notes of interim report 2024

1. Quarterly segment information

	2024	2023	2023	2023	2023	2023
EUR million	1-3	10-12	7-9	4-6	1-3	1-12
Revenue, O&G divestment adjusted
Pulp & Paper	422.9	418.8	403.6	421.2	504.6	1,748.2
Industry & Water, O&G divestment adjusted	295.9	271.4	290.7	287.9	291.0	1,140.9
Total, O&G divestment adjusted	718.8	690.2	694.3	709.1	795.6	2,889.0
Items affecting comparability in Revenue
Pulp & Paper	0.0	0.0	0.0	0.0	0.0	0.0
Industry & Water, O&G divestment adjustment	44.5	118.7	134.4	131.0	110.5	494.6
Total	44.5	118.7	134.4	131.0	110.5	494.6
Revenue
Pulp & Paper	422.9	418.8	403.6	421.2	504.6	1,748.2
Industry & Water	340.5	390.0	425.1	418.9	401.5	1,635.5
Total	763.3	808.8	828.7	840.1	906.0	3,383.7
Operative EBITDA, O&G divestment adjusted
Pulp & Paper	88.2	87.5	68.9	65.2	109.4	330.9
Industry & Water, O&G divestment adjusted	71.0	61.8	75.0	68.1	60.1	265.0
Total, O&G divestment adjusted	159.2	149.3	143.8	133.3	169.4	595.9
Items affecting comparability in Operative EBITDA
Pulp & Paper	0.0	0.0	0.0	0.0	0.0	0.0
Industry & Water, O&G divestment adjustment	3.3	13.4	16.5	17.7	23.2	70.8
Total	3.3	13.4	16.5	17.7	23.2	70.8

	2024	2023	2023	2023	2023	2023
EUR million	1-3	10-12	7-9	4-6	1-3	1-12
Operative EBITDA
Pulp & Paper	88.2	87.5	68.9	65.2	109.4	330.9
Industry & Water	74.3	75.2	91.5	85.8	83.3	335.8
Total	162.5	162.7	160.3	151.0	192.6	666.7
Items affecting comparability in EBITDA
Pulp & Paper	-0.1	-13.0	-0.1	-1.3	-8.5	-22.9
Industry & Water	-8.3	-98.4	-3.0	-2.4	0.0	-103.7
Total	-8.4	-111.4	-3.1	-3.7	-8.5	-126.7
EBITDA
Pulp & Paper	88.0	74.5	68.7	63.9	100.9	308.0
Industry & Water	66.0	-23.2	88.5	83.5	83.3	232.0
Total	154.1	51.3	157.2	147.4	184.1	540.0
Operative EBIT, O&G divestment adjusted
Pulp & Paper	59.8	58.6	39.8	37.6	80.4	216.3
Industry & Water, O&G divestment adjusted	54.6	45.1	58.0	52.0	44.1	199.2
Total, O&G divestment adjusted	114.4	103.7	97.8	89.6	124.4	415.5
Items affecting comparability in Operative EBIT
Pulp & Paper	0.0	0.0	0.0	0.0	0.0	0.0
Industry & Water, O&G divestment adjustment	3.2	8.9	9.9	11.3	17.4	47.6
Total	3.2	8.9	9.9	11.3	17.4	47.6
Operative EBIT
Pulp & Paper	59.8	58.6	39.8	37.6	80.4	216.3
Industry & Water	57.8	54.1	67.8	63.3	61.5	246.7
Total	117.6	112.6	107.6	100.9	141.9	463.0

	2024	2023	2023	2023	2023	2023
EUR million	1-3	10-12	7-9	4-6	1-3	1-12
Items affecting comparability in EBIT
Pulp & Paper	-0.1	-13.0	-0.1	-1.3	-8.5	-22.9
Industry & Water	-8.3	-98.4	-3.0	-2.4	0.0	-103.7
Total	-8.4	-111.4	-3.1	-3.7	-8.5	-126.7
Operating profit (EBIT)
Pulp & Paper	59.6	45.5	39.7	36.3	71.9	193.4
Industry & Water	49.5	-44.3	64.8	61.0	61.5	143.0
Total	109.2	1.3	104.5	97.2	133.4	336.4

2. Changes in property, plant, and equipment

		3. Changes in goodwill and other intangible assets

EUR million	1-3/2024	1-3/2023	1-12/2023
Net book value at beginning of period	939.7	1,080.2	1,080.2
Purchases of subsidiaries and asset acquisitions	—	—	—
Increases	23.5	27.0	194.0
Decreases	-1.0	-0.1	-0.1
Depreciation and impairments	-32.9	-36.8	-146.5
Transferred to assets classified as held-for-sale	—	—	-172.5
Exchange rate differences and other changes	-0.4	-9.3	-15.4
Net book value at end of period	928.8	1,060.9	939.6

1-3/2024	1-3/2023	1-12/2023
532.1	571.7	571.7
—	3.5	3.5
2.7	2.1	10.9
-0.1	—	-0.3
-3.6	-4.8	-19.0
—	—	-28.2
2.6	-3.4	-6.6
533.6	569.1	532.1

4. Changes in right-of-use assets

EUR million	1-3/2024	1-3/2023	1-12/2023
Net book value at beginning of period	123.0	146.0	146.0
Increases	11.9	4.2	37.1
Depreciation and impairments	-8.4	-9.2	-38.1
Transferred to assets classified as held-for-sale	—	—	-17.8
Exchange rate differences and other changes	1.8	-1.8	-4.2
Net book value at end of period	128.3	139.3	123.0

5. Derivative instruments

EUR million	3/31/2024		12/31/2023
Currency derivatives	Nominal value	Fair value	Nominal value	Fair value
Forward contracts	595.2	1.7	789.6	4.2
of which cash flow hedge	111.4	-0.3	265.8	2.3
Commodity derivatives	GWh	Fair value	GWh	Fair value
Commodity forward contracts 1)	570.5	-1.6	637.8	7.7
of which cash flow hedge	570.5	-1.6	637.8	7.7

1) Consists mostly of electricity derivative contracts

The fair values of the publicly traded instruments are based on the market valuation on the date of reporting. The values of other instruments have been determined based on net present values of future cash flows.

6. Fair value of financial assets

EUR million	3/31/2024						12/31/2023
Fair value hierarchy	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Non-current assets
Other shares	—	—	258.7	258.7	—	—	305.4	305.4
Other investments	—	6.3	—	6.3	—	6.3	—	6.3
Commodity derivatives, hedge accounting	—	0.8	—	0.8	—	1.6	—	1.6
Current assets
Currency derivatives	—	3.6	—	3.6	—	3.6	—	3.6
Currency derivatives, hedge accounting	—	0.5	—	0.5	—	4.8	—	4.8
Commodity derivatives, hedge accounting	—	2.0	—	2.0	—	9.5	—	9.5
Loan receivables	—	46.1	—	46.1	—	0.3	—	0.3
Trade receivables	—	377.2	—	377.2	—	386.2	—	386.2
Cash and cash equivalents	—	572.2	—	572.2	—	402.5	—	402.5
Assets classified as held-for sale 1)	—	—	—	—	—	57.1	—	57.1
Total		— 1,008.7		258.7 1,267.4	—	871.9	305.4	1,177.3

1) For more details see Note 9 Assets classified as held-for-sale

Level 1: Fair value is determined based on quoted market prices in markets.

Level 2: Fair value is determined by using valuation techniques. The fair value refers to the value that is observable from the market value of elements of the financial instrument or from the market value of corresponding financial instruments, or the value that is observable by using commonly accepted valuation models and techniques, if the market value can be measured reliably with them.

Level 3: Fair value is determined by using valuation techniques that use inputs that have a significant effect on the recorded fair value, and the inputs are not based on observable market data. Level 3 mainly includes the shares of Pohjolan Voima and Teollisuuden Voima.

L e v e l 3 s p e c i f i c a t i o n o n a s s e t s :

EUR million	3/31/2024	12/31/2023
Carrying value at beginning of period	305.4	383.3
Effect on other comprehensive income	-46.6	-76.7
Decreases	—	-0.3
Reclassifications	—	-1.0
Carrying value at end of period	258.7	305.4

The fair value of Pohjolan Voima and Teollisuuden Voima shares decreased in Q1 2024, mainly due to lower forward electricity prices. The shares have been recognized at fair value according to the valuation method described in Note 3.5 Other Shares in Annual Financial Statement 2023.

7. Fair value of financial liabilities

EUR million			3/31/2024				12/31/2023
Fair value hierarchy	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Non-current liabilities
Interest-bearing liabilities	—	387.9	—	387.9	—	519.3	—	519.3
Current portion of interest bearing liabilities	—	332.8	—	332.8	—	200.2	—	200.2
Other liabilities	—	8.7	—	8.7	—	8.7	—	8.7
Current portion of other liabilities	—	6.4	—	6.4	—	6.3	—	6.3
Lease liabilities	—	100.4	—	100.4	—	93.9	—	93.9
Current portion of lease liabilities	—	26.6	—	26.6	—	27.6	—	27.6
Commodity derivatives, hedge accounting	—	2.6	—	2.6	—	2.1	—	2.1
Current liabilities
Interest-bearing loans	—	91.7	—	91.7	—	88.7	—	88.7
Other liabilities	—	44.9	—	44.9	—	26.2	—	26.2
Currency derivatives	—	1.6	—	1.6	—	4.1	—	4.1
Currency derivatives, hedge accounting	—	0.8	—	0.8	—	0.1	—	0.1
Commodity derivatives, hedge accounting	—	1.8	—	1.8	—	1.4	—	1.4
Trade payables	—	223.5	—	223.5	—	226.7	—	226.7
Liabilities classified as held for-sale 1)	—	10.3	—	10.3	—	45.6	—	45.6
Total		— 1,240.0		— 1,240.0		— 1,250.9		— 1,250.9

1) For more details see Note 9 Assets classified as held-for-sale

8. Business combinations

In Q3 2021, Kemira acquired a minority interest in the advanced process optimization startup SimAnalytics Oy. In Q1 2023, Kemira acquired the rest of the business and now has a 100% interest in the acquired business. The acquisition was not material to Kemira's consolidated income statement and balance sheet.

The purchase price of EUR 3 million was paid in cash, except for certain payments which will be paid later. The purchase price is divided into two installments, of which EUR 2 million was paid in Q1 2023 and EUR 1 million was paid earlier in 2021. The remainder of the payments to the acquired company's employees, made after the acquisition date, are remunerations for services under IFRS 3 and these payments have no effect on goodwill.

Based on acquisition calculations, EUR 1 million was allocated to intangible assets such as software. A goodwill of EUR 2 million arises mainly from the expected synergies.

The acquired business has been consolidated into the Pulp & Paper segment, beginning in Q1 2023.

9. Assets held for sale

Sale of the Oil & Gas business to Sterling Specialty Chemicals, LLC

On December 4, 2023, Kemira 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. On February 2, 2024, Kemira announced that it has completed the divestment of its Oil & Gas-related portfolio to the buyer.

Approximately 250 employees transferred to the buyer as part of the transaction, which includes Kemira's manufacturing facilities in Mobile, Columbus and Aberdeen in the United States and the novel liquid polymer (NLP) manufacturing assets in Botlek, the Netherlands. The Teesport manufacturing facility in the United Kingdom is also included in the transaction. The closing of the Teesport is expected to happen later, subject to sitespecific closing conditions.

The total consideration on a cash and debt-free basis amounts to approximately USD 280 million, around EUR 260 million, subject to ordinary closing adjustments. The recognized loss from the sale of the Oil & Gas business was EUR 109 million, including transaction fees, of which EUR 7.9 million was recognized during Q1 2024 reporting period. The Oil & Gas business was part of Kemira's Industry & Water segment.

As of Q4 2023, the assets and liabilities related to the sale of the Oil & Gas business were classified as a disposal group held for sale according to IFRS 5. As a result, the assets and liabilities related to the sale of the Oil & Gas business were presented in the consolidated balance sheet, on separate lines. The tables below provide more information regarding the assets as held-for-sale and the related liabilities.

A s s e t s c l a s s i f i e d a s h e l d - f o r - s a l e a t f a i r v a l u e s

EUR million	3/31/2024	3/31/2023	12/31/2023
Goodwill	—	—	0.0
Intangible assets	—	—	1.6
Property, plant and equipment	3.4	—	109.5
Right-of-use assets	4.0	—	17.8
Deferred tax assets	—	—	19.2
Inventories	—	—	48.3
Trade receivables and other receivables	—	—	57.0
Cash and cash equivalents	—	—	2.2
Total	7.4	—	255.6

L i a b i l i t i e s d i r e c t l y a s s o c i a t e d w i t h t h e a s s e t s c l a s s i f i e d a s h e l d f o r s a l e

EUR million	3/31/2024	3/31/2023	12/31/2023
Liabilities related to right-of-use assets	10.3	—	24.1
Deferred tax liabilities	—	—	32.1
Trade payables and other liabilities	—	—	44.0
Current income tax liabilities	—	—	4.6
Total	10.3	—	104.8

Sale of the colorants business to ChromaScape, LLC

Kemira announced the closing of the divestment of most of its colorants business to ChromaScape, LLC on May 4, 2023. The loss from the sale of the colorants business was EUR 25 million, of which EUR 10 million was recognized during the 2023 reporting period. The colorants business was part of Kemira's Pulp & Paper segment.

59 employees transferred to ChromaScape, LLC as part of the transaction. The sale included one manufacturing site at Goose Creek, Bushy Park in South Carolina, USA. Kemira retained its APAC related colorants business.

As of Q3 2022, the assets and liabilities related to the sale of the colorants business were classified as a disposal group held for sale according to IFRS 5. As a result, the assets and liabilities related to the sale of the colorants business were presented in the consolidated balance sheet, on separate lines. The tables below provide more information regarding the assets as held-for-sale and the related liabilities.

A s s e t s c l a s s i f i e d a s h e l d f o r s a l e a t f a i r v a l u e

EUR million	3/31/2024	3/31/2023	12/31/2023
Goodwill	—	—	—
Intangible assets	—	—	—
Property, plant and equipment	—	—	—
Right-of-use assets	—	—	—
Inventories	—	11.3	—
Total	—	11.3	—

L i a b i l i t i e s d i r e c t l y a s s o c i a t e d w i t h t h e a s s e t s c l a s s i f i e d a s h e l d f o r s a l e

EUR million	3/31/2024	3/31/2023	12/31/2023
Liabilities of defined benefit plans	—	0.3	—
Liabilities related to right-of-use assets	—	0.4	—
Total	—	0.7	—

10. Contingent liabilities

EUR million	3/31/2024	3/31/2023	12/31/2023
Guarantees
On behalf of own commitments	112.0	106.2	109.5
On behalf of associates	11.5	11.9	11.7
On behalf of others	2.7	2.5	2.7
Other obligations
On behalf of own commitments	0.6	0.7	0.7
On behalf of others	—	16.3	—

T h e m o s t s i g n i f i c a n t o f f - b a l a n c e s h e e t i n v e s t m e n t s c o m m i t m e n t s

Major amounts of contractual investment commitments for the acquisition of property, plant, and equipment on March 31, 2024 were about EUR 11.4 million for manufacturing facilities.

In addition, the Group has a lease commitment related to the R&D Center to be constructed in Finland, with a value of EUR 47 million.

Litigation

While the Group is involved in some legal proceedings, such as litigations, arbitrations, administrative and tax proceedings incidental to its global operations, the Group does not expect that the outcome of any of these legal proceedings will have a materially adverse effect upon its consolidated results or financial position.

11. Related party

Pension Fund Neliapila, which is a related party, paid a surplus return of EUR 12 million to Kemira Group companies in March 2024. As part of this surplus return, 115,000 treasury shares were transferred to Kemira Oyj. Apart from this, transactions with related parties have not changed materially.

12. The basis of preparation and accounting policies

This unaudited interim financial statements have been prepared in accordance with the IAS 34 Interim Financial Reporting standard and using the same accounting policies as in the annual financial statements for 2023. The interim financial statements should be read in conjunction with the annual financial statements for 2023.

All individual figures presented in this interim financial statements have been rounded to the nearest exact figure. Therefore, the sum of the individual figures may deviate from the total figure presented in the interim financial statements. The key figures are calculated using exact values.

Critical accounting estimates and judgments

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses. The actual results may differ from these estimates.

13. Events after the review period

The Group has no significant events after the review period.