Kemira Oyj

Quarterly Report • Oct 25, 2022

January-September 2022 Interim Report

Capital expenditure	10
Segments	12

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
B

8	Assets held for sale	34
9	Contingent liabilities and litigation	34
10	Related party	34
11	Basis of preparation and accounting principles	35
	Critical accounting estimates and judgments	35

RECORD RESULT IN A SEASONALLY STRONG QUARTER

Third quarter:

• Revenue increased by 40% to a record-high: EUR 971.9 million (692.7). Revenue in local currencies, excluding acquisitions and divestments, increased by 31% due to higher sales prices, particularly in energy-intensive pulp and bleaching chemicals.
• Operative EBITDA increased by 32% to a record-high: EUR 152.5 million (115.9) following improvement in both segments. The operative EBITDA margin decreased to 15.7% (16.7%) as strong inflationary pressures continued. EBITDA increased by 25% to EUR 137.3 million (109.5). The differences between operative and reported figures are explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business.
• Operative EBIT increased by 54% to EUR 99.5 million (64.5). EBIT increased by 50% to EUR 84.5 million (56.4).
• Cash flow from operating activities was EUR 114.8 million (86.9).
• EPS (diluted) increased by 53% to EUR 0.38 (0.25).

January-September:

• Revenue increased by 33% to a record-high: EUR 2,601.3 million (1,956.2). Revenue in local currencies, excluding acquisitions and divestments, increased by 26% due to higher sales prices, particularly in energy-intensive pulp and bleaching chemicals.
• Operative EBITDA increased by 20% to a record-high: EUR 394.6 million (327.8) following improvement in both segments. The operative EBITDA margin decreased to 15.2% (16.8%) following strong inflationary pressures. EBITDA increased by 23% to EUR 374.0 million (303.7). The differences between operative and reported figures are explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business and Kemira's exit from Russia.
• Operative EBIT increased by 33% to EUR 238.1 million (178.4). EBIT increased by 41% to EUR 215.8 million (152.5).
• Cash flow from operating activities was EUR 145.4 million (139.4).
• EPS (diluted) increased by 43% to EUR 0.93 (0.65).

Outlook for 2022 (unchanged)

Revenue

Kemira's revenue in local currencies, excluding acquisitions and divestments, is expected to increase from 2021 (EUR 2,674.4 million).

Operative EBITDA

Kemira's operative EBITDA is expected to increase from 2021 (EUR 425.5 million).

Assumptions behind outlook (specified)

Kemira's end-market demand in both segments is expected to be good in 2022. Demand started to slow down slightly in Q3 2022 and the slowdown is expected to continue in Q4 2022. The outlook assumes no major disruptions to Kemira's manufacturing operations or further major disruptions to energy availability in Europe. Inflationary pressures are expected to remain strong in 2022.

Kemira's President and CEO Jari Rosendal:

"We had a strong third quarter. Revenue grew by 40% and reached a record-high of EUR 972 million driven by higher sales prices, particularly in energy-intensive pulp and bleaching chemicals. Sales volumes declined by 6%. Operative EBITDA reached a record-high of EUR 153 million following improvement in both segments. Operative EBITDA margin declined to 15.7% due to continued inflationary pressures, but it improved from the previous quarter.

In Pulp & Paper, revenue increased by 37% due to higher sales prices, particularly in pulp and bleaching chemicals. Market demand started to slow down during Q3 2022, which was also visible in our lower sales volumes. Operative EBITDA grew 45% to EUR 92 million and the operative EBITDA margin improved to 17.2%. The improvement was mainly driven by higher market prices for energy-intensive pulp and bleaching chemicals. In other products we continued to see margin pressure.

In Industry & Water, revenue increased by 44% driven by higher sales prices. Revenue in water treatment grew by 39%, while revenue in Oil & Gas increased by 61%. Market demand was good in water treatment and improved in Oil & Gas. Operative EBITDA increased 15% to EUR 60 million with improvement in both North America and Oil & Gas. The operative EBITDA margin declined to 13.9% due to continued strong inflationary pressures, particularly in the EMEA region.

In September, we arranged our Capital Markets Day. Our financial targets remain unchanged and we continue to be focused on sustainable profitable growth. We see interesting growth opportunities in our existing businesses and in new adjacent markets such as textiles. We are also in a much better position to look for M&A opportunities. In addition, we are continuously looking at ways to improve our business fundamentals. As an example, during Q3 2022 we announced an agreement to divest most of our colorants business, which will further simplify our product portfolio.

During Q3 2022, we also announced new appointments to the Management Board. Antti Salminen was appointed as President of the Pulp & Paper segment and Wido Waelput as Antti Salminen's successor as Interim President for Industry & Water. I am pleased with these appointments and confident that the segments are in excellent hands.

Our outlook for 2022 remains unchanged. We see inflationary pressures continuing. We have seen signs of moderation in some North American oil derivatives, while high energy prices in Europe are expected to put pressure on many raw material prices and even availability in the region. In terms of energy, Kemira is in a relatively good position, particularly in Finland, given our high level of backward-integration in electricity. Going forward, we will continue our actions to defend the relative profitability, while at the same time ensuring excellent delivery reliability to our customers."

KEY FIGURES AND RATIOS

	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec		Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
EUR million	2022	2021	2022	2021	2021	EUR million	2022	2021	2022	2021	2021
Revenue	971.9	692.7	2,601.3	1,956.2	2,674.4	Capital employed* 2,194.9 1,966.7		2,194.9	1,966.7	1,995.0
Operative EBITDA	152.5	115.9	394.6	327.8	425.5	Operative ROCE*, % 13.0 12.0 13.0		12.0	11.3
Operative EBITDA, %	15.7	16.7	15.2	16.8	15.9	ROCE*, %	10.6	9.8	10.6	9.8	8.5
EBITDA	137.3	109.5	374.0	303.7	373.2	Cash flow from operating activities	114.8	86.9	145.4	139.4	220.2
EBITDA, %	14.1	15.8	14.4	15.5	14.0	Capital expenditure excl. acquisition	43.5	35.1	108.1	94.2	168.8
Operative EBIT	99.5	64.5	238.1	178.4	225.4	Capital expenditure	43.5	36.1	108.1	95.2	169.8
Operative EBIT, %	10.2	9.3	9.2	9.1	8.4	Cash flow after investing activities	72.3	51.1	42.4	44.2	57.3
EBIT	84.5	56.4	215.8	152.5	170.1	Equity ratio, % at period-end	44	42	44	42	43
EBIT, %	8.7	8.1	8.3	7.8	6.4	Equity per share, EUR	10.77	8.28	10.77	8.28	8.68
Net profit for the period	60.3	39.6	149.4	105.3	115.2	Gearing, % at period-end	54	63	54	63	63
Earnings per share, diluted, EUR	0.38	0.25	0.93	0.65	0.70	*12-month rolling average

Unless otherwise stated, all comparisons in this report are made to the corresponding period in 2021. 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.

Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec		Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
2022	2021	2022	2021	2021	EUR million	2022	2021	2022	2021	2021

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.

Revenue Operative EBITDA and operative EBITDA margin

FINANCIAL PERFORMANCE IN Q3 2022

Revenue increased by 40%. Revenue in local currencies, excluding acquisitions and divestments, increased by 31%. Sales prices increased in both segments and across geographic regions, particularly in energy-intensive pulp and bleaching chemicals. Sales volumes declined due to lower sales volumes in Pulp & Paper.

Revenue	Jul-Sep 2022 EUR million	Jul-Sep 2021 EUR million	∆%	Organic growth*, %	Currency impact, %	Acq. & div. impact, %
Pulp & Paper	537.3	391.3	+37	+29	+8	0
Industry & Water	434.6	301.4 +44		+33	+11	0
Total	971.9	692.7 +40		+31	+9	0

*Revenue growth in local currencies, excluding acquisitions and divestments

Operative EBITDA increased by 32% to EUR 152.5 million (115.9) following improvement in both segments. Also indirect tax credits in Brazil had a positive impact of around EUR 5 million. The operative EBITDA margin decreased to 15.7% due to continued strong inflationary pressures, but the margin improved from the previous quarter (14.2%).

Variance analysis, EUR million	Jul-Sep
Operative EBITDA, 2021	115.9
Sales volumes	-17.0
Sales prices	+255.9
Variable costs	-196.7
Fixed costs	-20.4
Currency exchange	+11.2
Others	+3.7
Operative EBITDA, 2022	152.5

	Jul-Sep 2022	Jul-Sep 2021		Jul-Sep 2022	Jul-Sep 2021
Operative EBITDA	EUR million	EUR million	∆%	%-margin	%-margin
Pulp & Paper	92.3	63.5 +45		17.2	16.2
Industry & Water	60.3	52.3	+15	13.9	17.4
Total	152.5	115.9 +32		15.7	16.7

EBITDA increased by 25% to EUR 137.3 million (109.5). The difference between it and operative EBITDA is explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business. Items affecting comparability in the comparison period were mainly related to restructuring costs.

Items affecting comparability, EUR million	Jul-Sep 2022	Jul-Sep 2021
Within EBITDA	-15.3	-6.3
Pulp & Paper	-15.1	-1.3
Industry & Water	-0.2	-5.0
Within depreciation, amortization and impairments	0.3	-1.7
Pulp & Paper	0.3	0.0
Industry & Water	0.0	-1.7
Total items affecting comparability in EBIT	-15.0	-8.0

Depreciation, amortization and impairments were EUR 52.8 million (53.1), including EUR 2.0 million (3.0) in amortization of purchase price allocation.

Operative EBIT increased by 54% due to higher EBITDA. EBIT increased by 50%, and the difference between the two is explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business. Items affecting comparability in the comparison period were mainly related to restructuring costs.

Net finance costs totaled EUR -7.4 million (-7.8). Income taxes were EUR -16.9 million (-9.1), with the reported tax rate being 22% (19%). Net profit for the period increased by 52% mainly due to higher EBIT.

FINANCIAL PERFORMANCE IN JANUARY-SEPTEMBER 2022

Revenue increased by 33%. Revenue in local currencies, excluding acquisitions and divestments, increased by 26% due to higher sales prices in both segments and across geographic regions, particularly in energy-intensive pulp and bleaching chemicals. Sales volumes decreased following a decline in sales volumes in Pulp & Paper.

	Jan-Sep 2022	Jan-Sep 2021		Organic	Currency	Acq. & div.
Revenue	EUR million	EUR million	∆%	growth*, %	impact, %	impact, %
Pulp & Paper	1,471.4	1,139.2 +29		+23	+6	0
Industry & Water	1,129.9	817.0 +38		+30	+8	0
Total	2,601.3	1,956.2 +33		+26	+7	0

*Revenue growth in local currencies, excluding acquisitions and divestments

Geographically, the revenue split was as follows: EMEA (Europe, Middle East, Africa) 51% (51%), the Americas 40% (37%), and Asia Pacific 9% (11%).

Operative EBITDA increased by 20% to EUR 394.6 million (327.8) following improvement in both segments. The operative EBITDA margin declined to 15.2% due to strong inflationary pressures.

Variance analysis, EUR million	Jan-Sep
Operative EBITDA, 2021	327.8
Sales volumes	-29.1
Sales prices	+581.7
Variable costs	-471.1
Fixed costs	-41.2
Currency exchange	+19.0
Others	+7.5
Operative EBITDA, 2022	394.6

	Jan-Sep 2022	Jan-Sep 2021		Jan-Sep 2022	Jan-Sep 2021
Operative EBITDA	EUR million	EUR million	∆%	%-margin	%-margin
Pulp & Paper	237.1	184.3 +29		16.1	16.2
Industry & Water	157.5	143.5	+10	13.9	17.6
Total	394.6	327.8 +20		15.2	16.8

EBITDA increased by 23% to EUR 374.0 million (303.7). The difference between it and operative EBITDA is explained by items affecting comparability. Items affecting comparability were mainly related to an expected loss from the divestment of most of our colorants business and Kemira's exit from Russia. Items affecting comparability in the comparison period were mainly related to a damage claim settlement, site closures and restructuring.

Items affecting comparability, EUR million	Jan-Sep 2022	Jan-Sep 2021
Within EBITDA	-20.6	-24.1
Pulp & Paper	-18.7	-17.6
Industry & Water	-2.0	-6.5
Within depreciation, amortization and impairments	-1.7	-1.9
Pulp & Paper	-1.7	-0.1
Industry & Water	0.0	-1.7
Total	-22.3	-25.9

Depreciation, amortization and impairments increased to EUR 158.2 million (151.2), including the EUR 7.6 million (9.0) amortization of purchase price allocation.

Operative EBIT increased by 33% compared to the previous year. EBIT increased by 41%, and the difference between the two is explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business and Kemira's exit from Russia. Items affecting

comparability in the comparison period were mainly related to a damage claim settlement, site closures and restructuring.

Net finance costs totaled EUR -24.1 million (-17.9). The comparison period included a gain of EUR 5.6 million arising from bond liability management. Income taxes were

EUR -42.3 million (-29.3), with the reported tax rate being 22% (22%). Net profit for the period increased by 42% mainly due to higher EBIT.

FINANCIAL POSITION AND CASH FLOW

Cash flow from operating activities in January-September 2022 increased to EUR 145.4 million (139.4). Net working capital increased compared to the previous year due to higher inventories and receivables following higher raw material prices and strong revenue growth. During Q1 2022, Kemira's supplementary pension fund in Finland, Neliapila, returned excess capital totaling EUR 10 million to Kemira. Cash flow after investing activities was EUR 42.4 million (44.2).

At the end of the period, interest-bearing liabilities totaled EUR 1,080.4 million (984.5), including lease liabilities of EUR 152.8 million (131.2). The average interest rate of the Group's interest-bearing loan portfolio (excluding leases) was 1.7% (1.7%), and the duration was 21 months (30). Fixed-rate loans accounted for 71% (84%) of net interest-bearing liabilities, including lease liabilities.

Short-term liabilities maturing in the next 12 months amounted to EUR 266.1 million. On September 30, 2022, cash and cash equivalents totaled EUR 173.9 million (184.4). 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 906.4 million (800.1), including lease liabilities. The equity ratio was 44% (42%), while gearing was 54% (63%).

In Q2 2022, Kemira's shares in Pohjolan Voima and Teollisuuden Voima were revalued. Value of the shares increased by EUR 141 million due to higher electricity prices. The value of electricity derivatives increased by EUR 107 million during January-September 2022.

CAPITAL EXPENDITURE

In January-September 2022, capital expenditure excluding acquisitions increased by 15% to EUR 108.1 million (94.2). Capital expenditure (capex) can be broken down as follows: expansion capex 22% (21%), improvement capex 29% (28%), and maintenance capex 50% (52%).

RESEARCH AND DEVELOPMENT

In January-September 2022, total research and development expenses were EUR 23.3 million (20.8), representing 0.9% (1.1%) of the Group's revenue.

HUMAN RESOURCES

At the end of the period, Kemira Group had 4,914 employees (4,937). Kemira had 771 (769) employees in Finland, 1,687 (1,757) employees elsewhere in EMEA, 1,522 (1,485) in the Americas, and 934 (926) in APAC.

SUSTAINABILITY

Kemira's sustainability work covers economical, environmental, and social topics and is guided by the UN Sustainable Development Goals (SDGs). Our focus is on Clean Water and Sanitation (SDG6), Decent Work and Economic Growth (SDG8), Responsible consumption and production (SDG12), and Climate action (SDG13). More information on sustainability at Kemira can be found in the Sustainability report 2021. Quarterly data for Kemira's scope 1 and scope 2 emissions will be available on Kemira's website (kemira.com/investors) in early November.

Sustainability performance in 2022 SAFETY

Kemira's safety performance was below the previous year's level and the TRIF rate was 2.9 in January-September 2022. Kemira will focus on human behavior at work to improve safety performance for the remainder of 2022 and going into 2023.

PEOPLE

Kemira measures the employees' perception of diversity and inclusion in the company. In order to promote a diverse and inclusive work environment, Kemira arranged diversity & inclusion training for people leaders and launched new employee resource groups. In Q3 2022, work started on how to incorporate gender pay gap analysis into annual processes.

CIRCULARITY

Kemira continued to make progress in its biobased strategy and during the quarter, the new Growth Accelerator unit started in order to accelerate the commercialization of new biobased products. Kemira continued site-specific work to identify opportunities for waste reduction in line with its target to reduce waste intensity by 15% by 2030.

WATER

In Q1 2022, Kemira updated its sustainability target for water as of 2022 and aims to reach the highest, Leadership-level (A), in water management by 2025 as measured by CDP Water Security. During Q3 2022, Kemira continued work to improve ways of measuring water consumption.

CLIMATE

During Q2 2022, Kemira committed to the Science Based Targets initiative (SBTi) and set a new ambitious climate target to reduce scope 1 and scope 2 emissions by 50% by 2030. Work continued in Q3 2022 to develop a quantified near-term scope 3 emission reduction target to be validated by the SBTi. During the quarter, Kemira also initiated a project on climate scenario analysis and related risk assessment.

SDG	KPI	UNIT	2021
	SAFETY TRIF 1.5 by 2025 and 1.1 by 2030 TRIF = total recordable injury frequency per million hours, Kemira + contractors		2.7
	PEOPLE Reach top 10% cross industry norm for Diversity & Inclusion by 2025		Slightly below top 25%
	CIRCULARITY Reduce waste intensity by 15% by 2030 from a 2019 baseline of 4.6 Biobased products > EUR 500 million revenue by 2030 metric tonnes of routine disposed production waste per thousand metric tonnes of production	t/1000t	4.3
	WATER Reach Leadership level (A) in water management by 2025 measured by CDP Water Security scoring methodology.	Rate scale A-D	B
	CLIMATE Scopes 1 & 2*** emissions -50% by 2030 compared to 2018 baseline of 930 ktCO2e	ktCO2e	856

***Scope 1: Direct greenhouse gas emissions from Kemira's manufacturing sites, e.g. generation of energy and emissions from manufacturing processes

Scope 2: Indirect greenhouse gas emissions from external generation and purchase of electricity, heating, cooling and steam

SEGMENTS

PULP & PAPER

Pulp & Paper has unique expertise in applying chemicals and in supporting pulp and paper producers in innovating and constantly improving their operational efficiency. The segment develops and commercializes new products to meet the need 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 is leveraging its strong application portfolio in North America and EMEA, while it is also building a strong position in the emerging Asian and South American markets.

	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
EUR million	2022	2021	2022	2021	2021
Revenue	537.3	391.3	1,471.4	1,139.2	1,559.6
Operative EBITDA	92.3	63.5	237.1	184.3	244.7
Operative EBITDA, %	17.2	16.2	16.1	16.2	15.7
EBITDA	77.2	62.3	218.5	166.7	198.3
EBITDA, %	14.4	15.9	14.8	14.6	12.7
Operative EBIT	61.8	32.5	145.3	93.8	124.3
Operative EBIT, %	11.5	8.3	9.9	8.2	8.0
EBIT	47.0	31.2	125.0	76.1	77.7
EBIT, %	8.7	8.0	8.5	6.7	5.0
Capital employed*	1,324.2	1,219.7	1,324.2	1,219.7	1,226.9
Operative ROCE*, %	13.3	10.8	13.3	10.8	10.1
ROCE*, %	9.6	7.9	9.6	7.9	6.3
Capital expenditure excl. M&A	28.4	19.9	71.1	48.6	88.5
Capital expenditure incl. M&A	28.4	20.9	71.1	49.6	89.5
Cash flow after investing activities	66.6	26.7	92.2	77.5	94.6

*12-month rolling average

Third quarter:

The segment's revenue increased by 37%. Revenue in local currencies, excluding acquisitions and divestments, increased by 29% due to higher sales prices, particularly in energy-intensive pulp and bleaching chemicals. Sales volumes declined as demand started to slow down during the quarter. Kemira's exit from Russia also had a negative impact on sales volumes. Currencies had a positive impact.

In EMEA, revenue increased by 42% due to higher sales prices, which increased across product groups, particularly in pulp and bleaching chemicals. Sales volumes

declined. In the Americas, revenue increased by 38%. Revenue in local currencies, excluding acquisitions and divestments, increased by 19% due to higher sales prices, which increased across product groups. Sales volumes declined. In APAC, revenue increased by 21%. Revenue in local currencies, excluding acquisitions and divestments, increased by 10% due to higher sales prices, particularly in sizing chemicals. Sales volumes declined.

Operative EBITDA increased by 45% mainly driven by higher market prices for energy-intensive pulp and bleaching chemicals. In addition, indirect tax credits in Brazil had a positive impact on operative EBITDA. The operative EBITDA margin increased to 17.2%. EBITDA increased by 24%. The difference from operative EBITDA is explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business. Items affecting comparability in the comparison period were related to site closures.

January-September:

The segment's revenue increased by 29%. Revenue in local currencies (excluding divestments and acquisitions) increased by 23% driven by higher sales prices, particularly in pulp and bleaching chemicals. Sales volumes decreased following slowing demand and Kemira's exit from Russia.

Operative EBITDA increased by 29% following higher revenue and, in particular, high market prices for energy-intensive bleaching chemicals. The operative EBITDA margin declined to 16.1% due to strong inflationary pressures. EBITDA increased by 31%. The difference between it and operative EBITDA is explained by items affecting comparability, which were mainly related to an expected loss from the divestment of most of our colorants business and Kemira's exit from Russia. Items affecting comparability in the comparison period were mainly related to site closures and restructuring.

Revenue Operative EBITDA and operative EBITDA margin

INDUSTRY & WATER

Industry & Water supports municipalities and water-intensive industries in the efficient and sustainable use of resources. In water treatment, Kemira provides assistance in optimizing various stages of the water cycle. In oil and gas applications, our chemistries enable improved yield from existing reserves, reduced water and energy use, as well as efficiency of oil sands tailings treatment.

	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
EUR million	2022	2021	2022	2021	2021
Revenue	434.6	301.4	1,129.9	817.0	1,114.8
Operative EBITDA	60.3	52.3	157.5	143.5	180.8
Operative EBITDA, %	13.9	17.4	13.9	17.6	16.2
EBITDA	60.1	47.3	155.5	137.0	174.9
EBITDA, %	13.8	15.7	13.8	16.8	15.7
Operative EBIT	37.7	31.9	92.8	84.6	101.2
Operative EBIT, %	8.7	10.6	8.2	10.4	9.1
EBIT	37.5	25.2	90.8	76.4	92.4
EBIT, %	8.6	8.4	8.0	9.4	8.3
Capital employed*	870.5	746.5	870.5	746.5	767.6
Operative ROCE*, %	12.6	13.9	12.6	13.9	13.2
ROCE*, %	12.3	12.9	12.3	12.9	12.0
Capital expenditure excl. M&A	15.1	15.1	37.1	45.6	80.3
Capital expenditure incl. M&A	15.1	15.1	37.1	45.6	80.3
Cash flow after investing activities	31.6	38.2	25.2	41.7	50.9

*12-month rolling average

Third quarter:

The segment's revenue increased by 44%. Revenue in local currencies, excluding acquisitions and divestments, increased by 33% mainly due to higher sales prices. Sales volumes increased. Currencies had a positive impact.

In the water treatment business, revenue increased by 39% due to higher sales prices. Sales volumes declined slightly. The revenue of the Oil & Gas business increased by 61% to EUR 120.8 million (74.9), driven by higher sales prices and sales volumes.

In EMEA, revenue increased by 37% mainly due to higher sales prices in water treatment. In the Americas, revenue increased by 53%. Revenue in local currencies,

excluding acquisitions and divestments, increased by 30% driven mainly by higher sales prices. In water treatment, revenue growth was driven by higher sales prices. In the Oil and Gas business, sales prices and sales volumes increased. In APAC, revenue increased by 9% albeit from a low base.

Operative EBITDA increased by 15% following higher sales prices. The operative EBITDA margin declined to 13.9% due to continued strong inflationary pressures. EBITDA increased by 27%, and the difference from operative EBITDA is explained by items affecting comparability. Items affecting comparability in the comparison period were related to restructuring.

301.4 297.8

January-September:

The segment's revenue increased by 38%. Revenue in local currencies, excluding acquisitions and divestments, increased by 30%. The increase was driven mainly by higher sales prices. Also sales volumes increased. Currencies had a positive impact.

In the water treatment business, revenue increased by 34% due to higher sales prices. Also sales volumes increased. Revenue in the Oil & Gas business increased by 55% to EUR 279.3 million (180.8) mainly due to higher sales prices, particularly in shale. Also sales volumes increased.

Operative EBITDA increased by 10% following higher revenue. The operative EBITDA margin declined to 13.9% due to continued strong inflationary pressures. EBITDA increased by 14% and the difference from operative EBITDA is explained by items affecting comparability. Items affecting comparability in the comparison period were related to restructuring.

Revenue Operative EBITDA and operative EBITDA margin

KEMIRA OYJ'S SHARES AND SHAREHOLDERS

On September 30, 2022, 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 September 2022, Kemira Oyj had 49,937 registered shareholders (49,484 on December 31, 2021). Non-Finnish shareholders held 30.4% of the shares (28.4% on December 31, 2021), including nominee-registered holdings. Households owned 20.0% of the shares (19.8% on December 31, 2021). Kemira held 1,980,847 treasury shares (2,215,073 on December 31, 2021), representing 1.3% (1.4% on December 31, 2021) of all company shares.

Kemira Oyj's share price decreased by 16% from the beginning of the year and closed at EUR 11.35 on the Nasdaq Helsinki at the end of September 2022 (13.33 on December 31, 2021). The shares registered a high of EUR 13.95 and a low of EUR 10.36 in January-September 2022, and the average share price was EUR 12.2. The company's market capitalization, excluding treasury shares, was EUR 1,741 million at the end of September 2022 (2,041 December 31, 2021).

In January-September 2022, Kemira Oyj's share trading turnover on the Nasdaq Helsinki was EUR 361 million (EUR 653 million in January-September 2021). The average daily trading volume was 155,579 shares (251,857 in January-September 2021). The total volume of Kemira Oyj's share trading in January-September 2022 was 39 million shares (59 million shares in January-September 2021), 25% (20% in January-September 2021) of which was executed on other trading platforms (e.g. Turquoise, CBOE DXE). Source: Nasdaq and Kemira.com.

AUTHORIZATIONS

The Annual General Meeting 2022 authorized the Board of Directors to decide upon the repurchase of a maximum of 5,800,000 of the company's own shares ("share repurchase authorization"). 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 a maximum of 7,800,000 company's own shares held by the company ("share issue authorization"). The share issue authorization is valid until May 31, 2023.

DIVIDEND

The Annual General Meeting 2022 approved the Board of Directors' proposal of EUR 0.58 per share for the financial year 2021. The dividend will be paid in two installments. The first installment of EUR 0.29 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 28, 2022. The first installment of the dividend was paid on April 7, 2022.

The Board of Directors decided on the record date and the payment date for the second dividend installment of EUR 0.29 at its meeting on October 24, 2022. The record date is October 27, 2022, and the dividend payment date November 3, 2022. Kemira announced the resolution of the Board of Directors with a separate stock exchange release and confirmed the record and payment dates.

SHORT-TERM RISKS AND UNCERTAINTIES

There have been changes in Kemira's short-term risks and uncertainties compared to the situation on December 31, 2021.

In its annual risk review published in conjunction with the Financial Statements Bulletin 2021, Kemira referred to geopolitical tensions in Eastern Europe and how geopolitical tensions and sanctions against Russia could cause disruptions in energy and raw material availability in Europe. The war in Ukraine, which started in February 2022, has increased uncertainty in Kemira's operating environment, particularly related to energy availability. The risks and impacts of the war in Ukraine are described in more detail below.

Kemira also referred to the risks of the COVID-19 situation in its Financial Statements Bulletin 2021. The COVID-19 situation in China was volatile during January-September 2022. Previous and possible upcoming lockdowns in China could create further bottlenecks for global supply chains, including raw materials and logistics, and, as a result, increase uncertainty in Kemira's operating environment.

Kemira sources large share of its electricity in Finland at production cost (Mankala principle) through its partial ownership in the electricity producing hydro and nuclear assets of Teollisuuden Voima and Pohjolan Voima. Significant long-term disruptions to the production levels in these assets could have an adverse financial impact for 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 2021.

RISKS AND IMPACTS OF THE WAR IN UKRAINE ON KEMIRA

Following the war in Ukraine and subsequent sanctions against Russia and Belarus, Kemira announced its decision to discontinue deliveries to Russia and Belarus on March 1, 2022. Russia accounted for around 3% of Kemira's sales in 2021. Revenue from Belarus and Ukraine was not material in 2021. The fifth EU sanctions list published on April 9, 2022 included the majority of Kemira's products. Kemira announced on May 6, 2022 that it will exit the Russian market. At the end of September 2022, Kemira had no operative business or personnel left in Russia.

The direct impacts of the war on Kemira have been and are expected to be limited. In 2021, 1% of Kemira's total direct purchases and logistics costs were related to purchases from Russia and Belarus. Kemira does not purchase raw materials from Ukraine. For the time being, Kemira has secured the supply of the raw materials it has previously sourced from Russia and Belarus. Should the situation deteriorate, it could have a negative impact on Kemira's operations. In 2022, Kemira has worked to find long-term alternatives to Russian and Belarussian suppliers. The war in Ukraine and the sanctions against Russia and Belarus have resulted in disruptions to energy availability to Europe, particularly in natural gas. Kemira is a significant user of energy with annual energy purchases globally amounting to around EUR 200 million in 2021. The majority of Kemira's energy purchases is electricity, but some of Kemira's production facilities use natural gas in Europe. The disruptions in energy availability did not have a material impact on Kemira's operations between January and September 2022. Kemira is preparing for various scenarios should energy, particularly natural gas, availability be further disrupted in Europe in the coming quarters.

Kemira is also exposed to indirect impacts via Kemira's customers and suppliers. In particular, high energy prices or disruptions in energy availability could reduce or

temporarily stop production at Kemira's customers and/or suppliers, which could affect Kemira's end market demand or supply chain. In Q3 2022 some of Kemira's customers in the EMEA region curtailed or temporarily closed production due to high energy prices. Accelerated inflation is expected to be a significant risk from the war in Ukraine. Inflation, particularly related to energy, has accelerated strongly during 2022 and inflationary pressures are expected to remain strong for the remainder of 2022.

Kemira had limited exposure to Russia at the end of September 2022. During January–September 2022, Kemira recorded EUR 5.8 million of losses related to its exit from Russia. After recorded losses in January–September 2022, net assets related to the Russian business amounted to around EUR 10 million at the end of September 2022 and consisted mainly of cash and cash equivalents. Kemira is looking at various options to repatriate funds from Russia. The cash in Russia is denominated in Russian roubles. Kemira had no assets or personnel in Belarus or Ukraine at the end of September 2022.

CHANGES IN KEMIRA'S MANAGEMENT BOARD

On August 8, 2022 Kemira announced that Antti Salminen (1971) had been appointed to lead Kemira's Pulp & Paper segment as of August 15, 2022. He has had several prior leadership positions in Kemira, latest as President, Industry & Water segment, and has been a member of Kemira's Management Board since 2011.

On August 30, 2022 Kemira announced that Wido Waelput (1959) has been appointed Interim President of Kemira's Industry & Water segment and a member of Kemira's Management Board as of September 1, 2022 until the ongoing search process for the permanent segment president has been concluded.

OTHER EVENTS DURING THE REVIEW PERIOD

On September 12,2022 Kemira announced an agreement to divest most of its colorants business to ChromaScape LLC. The transaction is expected to close in Q1 2023. The revenue of the business was approximately EUR 50 million in 2021.

EVENTS AFTER THE REVIEW PERIOD

No events after the review period.

OUTLOOK FOR 2022 (UNCHANGED)

Revenue

Kemira's revenue in local currencies, excluding acquisitions and divestments, is expected to increase from 2021 (EUR 2,674.4 million).

Operative EBITDA

Kemira's operative EBITDA is expected to increase from 2021 (EUR 425.5 million).

Assumptions behind outlook (specified)

Kemira's end-market demand in both segments is expected to be good in 2022. Demand started to slow down slightly in Q3 2022 and the slowdown is expected to continue in Q4 2022. The outlook assumes no major disruptions to Kemira's manufacturing operations or further major disruptions to energy availability in Europe. Inflationary pressures are expected to remain strong in 2022.

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, October 24, 2022

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, and actual results may differ materially from the expectations and beliefs such statements contain.

FINANCIAL REPORTING SCHEDULE 2023

Financial Statements Bulletin for the year 2022	February 10, 2023
Interim report January-March 2023	April 25, 2023
Half-year financial report January-June 2023	July 18, 2023
Interim report January-September 2023	October 24, 2023
Annual Report 2022 will be published the week starting on February 13, 2023.
The Annual General Meeting is scheduled for Wednesday, March 22, 2023.

WEBCAST AND CONFERENCE CALL FOR PRESS AND ANALYSTS

Kemira will arrange a webcast for analysts, investors, and media on Tuesday, October 25, 2022, starting at 10.30 am EEST (8.30 am UK time). During the webcast, Kemira's President and CEO, Jari Rosendal, 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. In order to participate in the conference call, please call in ten minutes before the conference begins:

FI +358 (0)9 2319 5437 SE +46 (0)8 5052 0424 UK +44 (0)33 0551 0200 US +1 (0)7 86697 3501

Please quote "Kemira" as conference ID when requested by the operator.

KEMIRA GROUP - FINANCIALS OF INTERIM REPORT 2022

CONSOLIDATED INCOME STATEMENT

EUR million	7-9/2022	7-9/2021	1-9/2022	1-9/2021	1-12/2021
Revenue	971.9	692.7	2,601.3	1,956.2	2,674.4
Other operating income	5.4	0.6	9.3	1.8	5.9
Operating expenses	-840.0	-583.5	-2,236.6	-1,654.1	-2,306.7
Share of profit or loss of associates	0.0	-0.3	0.0	-0.3	-0.5
EBITDA	137.3	109.5	374.0	303.7	373.2
Depreciation, amortization and impairments	-52.8	-53.1	-158.2	-151.2	-203.1
Operating profit (EBIT)	84.5	56.4	215.8	152.5	170.1
Finance costs, net	-7.4	-7.8	-24.1	-17.9	-26.7
Profit before taxes	77.1	48.7	191.7	134.7	143.3
Income taxes	-16.9	-9.1	-42.3	-29.3	-28.2
Net profit for the period	60.3	39.6	149.4	105.3	115.2
Net profit attributable to
Equity owners of the parent company	57.9	37.7	143.4	99.7	108.1
Non-controlling interests	2.4	1.9	6.0	5.6	7.1
Net profit for the period	60.3	39.6	149.4	105.3	115.2
Earnings per share, basic, EUR	0.38	0.25	0.94	0.65	0.71
Earnings per share, diluted, EUR	0.38	0.25	0.93	0.65	0.70

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR million	7-9/2022	7-9/2021	1-9/2022	1-9/2021	1-12/2021
Net profit for the period	60.3	39.6	149.4	105.3	115.2
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	38.1	4.7	63.8	21.9	32.2
Cash flow hedges	25.2	12.9	83.6	14.1	19.3
Items that will not be reclassified subsequently to profit or loss
Other shares	—	25.3	112.9	25.3	40.2
Remeasurements of defined benefit plans	—	—	—	—	21.5
Other comprehensive income for the period, net of tax	63.3	42.9	260.2	61.3	113.3
Total comprehensive income for the period	123.6	82.5	409.6	166.6	228.4
Total comprehensive income attributable to
Equity owners of the parent company	120.2	80.8	404.3	161.1	221.2
Non-controlling interests	3.5	1.7	5.4	5.5	7.2
Total comprehensive income for the period	123.6	82.5	409.6	166.6	228.4

CONSOLIDATED BALANCE SHEET

EUR million	9/30/2022	9/30/2021	12/31/2021
ASSETS
Non-current assets
Goodwill	523.1	511.7	514.0
Other intangible assets	61.0	67.6	66.7
Property, plant and equipment	1,085.7	1,016.5	1,063.0
Right-of-use assets	150.3	130.5	135.8
Investments in associates	4.6	4.9	4.8
Other shares	401.3	245.0	260.0
Deferred tax assets	36.1	42.5	30.5
Other financial assets	49.2	7.4	7.3
Receivables of defined benefit plans	63.3	47.8	73.2
Total non-current assets	2,374.6	2,073.8	2,155.4
Current assets
Inventories	474.1	324.3	352.1
Interest-bearing receivables	0.3	0.3	0.3
Trade receivables and other receivables	701.4	430.7	475.2
Current income tax assets	20.0	21.2	13.9
Cash and cash equivalents	173.9	184.4	142.4
Total current assets	1,369.7	961.0	983.9
Assets classified as held-for-sale	23.6	—	—
Total assets	3,767.8	3,034.8	3,139.3

EUR million	9/30/2022	9/30/2021	12/31/2021
EQUITY AND LIABILITIES
Equity
Equity attributable to equity owners of the parent company	1,651.1	1,267.2	1,328.9
Non-controlling interests	12.2	12.2	13.9
Total equity	1,663.3	1,279.3	1,342.7
Non-current liabilities
Interest-bearing liabilities	814.3	778.3	776.9
Other financial liabilities	9.6	8.7	9.4
Deferred tax liabilities	124.3	72.4	77.1
Liabilities of defined benefit plans	91.0	96.5	94.1
Provisions	44.7	29.4	48.0
Total non-current liabilities	1,083.9	985.3	1,005.5
Current liabilities
Interest-bearing liabilities	266.1	206.2	215.3
Trade payables and other liabilities	684.8	510.4	538.3
Current income tax liabilities	54.6	30.4	14.3
Provisions	14.2	23.1	23.1
Total current liabilities	1,019.6	770.2	791.0
Total liabilities	2,103.5	1,755.5	1,796.5
Liabilities classified as held-for-sale	1.0	—	—
Total equity and liabilities	3,767.8	3,034.8	3,139.3

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

EUR million	7-9/2022	7-9/2021	1-9/2022	1-9/2021	1-12/2021
Cash flow from operating activities
Net profit for the period	60.3	39.6	149.4	105.3	115.2
Total adjustments	96.3	53.2	253.1	191.5	273.4
Cash flow before change in net working capital	156.5	92.8	402.5	296.9	388.5
Change in net working capital	-15.8	8.0	-182.0	-82.4	-80.2
Cash generated from operations before financing items and taxes	140.7	100.8	220.5	214.4	308.3
Finance expenses, net and dividends received	-18.4	-7.7	-49.3	-35.0	-44.2
Income taxes paid	-7.6	-6.1	-25.8	-40.1	-44.0
Net cash generated from operating activities	114.8	86.9	145.4	139.4	220.2
Cash flow from investing activities
Capital expenditure in associated company	—	—	—	—	—
Capital expenditure in other shares	—	-1.0	—	-1.0	-1.0
Other capital expenditure	-43.5	-35.1	-108.1	-94.2	-168.8
Proceeds from sale of assets and capital repayments	0.7	0.1	4.4	0.1	6.7
Decrease (+) / increase (-) in loan receivables	0.2	0.2	0.6	0.0	0.2
Net cash used in investing activities	-42.5	-35.8	-103.1	-95.2	-162.9

EUR million	7-9/2022	7-9/2021	1-9/2022	1-9/2021	1-12/2021
Cash flow from financing activities
Proceeds from non-current interest-bearing liabilities	—	—	15.9	200.0	200.0
Repayments of non-current liabilities	—	—	-52.8	-97.3	-97.3
Short-term financing, net increase (+) / decrease (-)	-30.3	—	95.7	-50.0	-53.9
Repayments of lease liabilities	-8.7	-8.3	-25.9	-24.6	-33.1
Dividends paid	-7.0	-4.5	-51.4	-50.9	-95.3
Net cash used in financing activities	-46.0	-12.8	-18.5	-22.7	-79.5
Net decrease (-) / increase (+) in cash and cash equivalents	26.3	38.3	23.8	21.5	-22.2
Cash and cash equivalents at end of period	173.9	184.4	173.9	184.4	142.4
Exchange gains (+) / losses (-) on cash and cash equivalents	0.3	0.8	7.7	3.4	5.1
Cash and cash equivalents at beginning of period	147.3	145.3	142.4	159.5	159.5
Net decrease (-) / increase (+) in cash and cash equivalents	26.3	38.3	23.8	21.5	-22.2

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, 2022	221.8	257.9	140.9	196.3	-53.7	-14.9	580.5	1,328.8	13.9	1,342.7
Net profit for the period	—	—	—	—	—	—	143.4	143.4	6.0	149.4
Other comprehensive income, net of tax	—	—	196.5	—	64.4	—	—	260.9	-0.6	260.2
Total comprehensive income	—	—	196.5	—	64.4	—	143.3	404.3	5.4	409.6
Transactions with owners
Dividends paid	—	—	—	—	—	—	-88.9 1)	-88.9	-7.0	-95.9
Treasury shares issued to the target group of a share-based incentive plan	—	—	—	—	—	1.5	—	1.5	—	1.5
Treasury shares issued to the Board of Directors	—	—	—	—	—	0.1	—	0.1	—	0.1
Treasury shares returned	—	—	—	—	—	0.0	—	0.0	—	0.0
Share-based payments	—	—	—	—	—	—	5.3	5.3	—	5.3
Transfers in equity	—	—	0.1	—	—	—	-0.1	0.0	—	0.0
Total transactions with owners	—	—	0.1	—	—	1.6	-83.7	-82.0	-7.0	-89.0
Equity on September 30, 2022	221.8	257.9	337.5	196.3	10.7	-13.3	640.2	1,651.1	12.2	1,663.3

1) On March 24, 2022, the Annual General Meeting approved a dividend of EUR 0.58 per share. The dividend will be paid in two installments. The record date for the first installment of the dividend was March 28, 2022, and a dividend of EUR 0.29 was paid on April 7, 2022. The record date for the second installment of the dividend is planned to be October 27, 2022, and the dividend payment date for the dividend of EUR 0.29 per share will be on November 3, 2022 at the earliest.

Kemira had in its possession 1,980,847 of its treasury shares on September 30, 2022. The average share price of treasury shares was EUR 6.73, and they represented 1.3% of the share capital and the aggregate number of votes conferred by all shares. The aggregate par value of the treasury shares is EUR 2.8 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 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, 2021	221.8	257.9	81.1	196.3	-85.8	-16.3	537.1	1,192.1	13.2	1,205.3
Net profit for the period	—	—	—	—	—	—	99.7	99.7	5.6	105.3
Other comprehensive income, net of tax	—	—	39.4	—	22.0	—	—	61.4	-0.1	61.3
Total comprehensive income	—	—	39.4	—	22.0	—	99.7	161.1	5.5	166.6
Transactions with owners
Dividends paid	—	—	—	—	—	—	-88.8 2)	-88.8	-6.5	-95.3
Treasury shares issued to the target group of a share-based incentive plan	—	—	—	—	—	1.3	—	1.3	—	1.3
Treasury shares issued to the Board of Directors	—	—	—	—	—	0.1	—	0.1	—	0.1
Treasury shares returned	—	—	—	—	—	0.0	—	0.0	—	0.0
Share-based payments	—	—	—	—	—	—	1.7	1.7	—	1.7
Transfers in equity	—	—	0.3	—	—	—	-0.3	0.0	—	0.0
Other items	—	—	—	—	—	—	-0.4	-0.4	—	-0.4
Total transactions with owners	—	—	0.3	—	—	1.4	-87.8	-86.1	-6.5	-92.6
Equity on September 30, 2021	221.8	257.9	120.8	196.3	-63.8	-14.9	549.0	1,267.2	12.2	1,279.3

2) On March 24, 2021, the Annual General Meeting approved a dividend of EUR 0.58 per share. The dividend was paid in two installments. The record date for the first installment of the dividend was March 26, 2021, and a dividend of EUR 0.29 was paid on April 8, 2021. The record date for the second installment of the dividend is October 28, 2021, and the dividend of EUR 0.29 per share was paid on November 4, 2021.

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 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.

	2022	2022	2022	2021	2021	2021	2021	2022	2021	2021
	7-9	4-6	1-3	10-12	7-9	4-6	1-3	1-9	1-9	1-12
Income statement and profitability
Revenue, EUR million	971.9	861.4	768.1	718.2	692.7	657.5	606.1	2,601.3	1,956.2	2,674.4
Operative EBITDA, EUR million	152.5	122.1	120.0	97.8	115.9	107.3	104.6	394.6	327.8	425.5
Operative EBITDA, %	15.7	14.2	15.6	13.6	16.7	16.3	17.3	15.2	16.8	15.9
EBITDA, EUR million	137.3	123.2	113.5	69.5	109.5	91.1	103.0	374.0	303.7	373.2
EBITDA, %	14.1	14.3	14.8	9.7	15.8	13.9	17.0	14.4	15.5	14.0
Items affecting comparability in EBITDA, EUR million	-15.3	1.2	-6.5	-28.3	-6.3	-16.2	-1.6	-20.6	-24.1	-52.4
Operative EBIT, EUR million	99.5	69.7	68.9	47.0	64.5	58.2	55.7	238.1	178.4	225.4
Operative EBIT, %	10.2	8.1	9.0	6.5	9.3	8.9	9.2	9.2	9.1	8.4
Operating profit (EBIT), EUR million	84.5	69.1	62.2	17.5	56.4	41.9	54.2	215.8	152.5	170.1
Operating profit (EBIT), %	8.7	8.0	8.1	2.4	8.1	6.4	8.9	8.3	7.8	6.4
Items affecting comparability in EBIT, EUR million	-15.0	-0.7	-6.7	-29.5	-8.0	-16.3	-1.6	-22.3	-25.9	-55.4
Amortization and impairments of Intangible assets	-5.0	-5.4	-5.8	-7.0	-5.9	-6.0	-6.2	-16.2	-18.2	-25.2
Of which purchase price allocation (PPA) related	-2.0	-2.4	-3.1	-3.1	-3.0	-3.0	-3.0	-7.6	-9.0	-12.1
Depreciations and impairments of Property, plant and equipment	-38.8	-39.4	-36.5	-35.3	-38.7	-34.6	-34.4	-114.8	-107.7	-143.0
Depreciations of right-of-use assets	-8.9	-9.3	-8.9	-8.8	-8.5	-8.5	-8.2	-27.2	-25.3	-34.1
Return on investment (ROI), %	12.2	9.9	9.4	2.9	9.7	7.0	10.1	10.2	8.7	7.2
Capital employed, EUR million 1)	2,194.9	2,113.6	2,045.4	1,995.0	1,966.7	1,956.1	1,958.8	2,194.9	1,966.7	1,995.0
Operative ROCE, %	13.0	11.8	11.7	11.3	12.0	11.9	11.9	13.0	12.0	11.3
ROCE, %	10.6	9.7	8.7	8.5	9.8	10.0	10.7	10.6	9.8	8.5

	2022	2022	2022	2021	2021	2021	2021	2022	2021	2021
	7-9	4-6	1-3	10-12	7-9	4-6	1-3	1-9	1-9	1-12
Cash flow
Net cash generated from operating activities, EUR million	114.8	41.6	-10.9	80.8	86.9	38.6	13.8	145.4	139.4	220.2
Capital expenditure, EUR million	43.5	38.5	26.1	74.5	36.1	32.5	26.6	108.1	95.2	169.8
Capital expenditure excl. acquisitions, EUR million	43.5	38.5	26.1	74.5	35.1	32.5	26.6	108.1	94.2	168.8
Capital expenditure excl. acquisitions / revenue, %	4.5	4.5	3.4	10.4	5.1	4.9	4.4	4.2	4.8	6.3
Cash flow after investing activities, EUR million	72.3	6.7	-36.6	13.1	51.1	6.1	-13.1	42.4	44.2	57.3
Balance sheet and solvency
Equity ratio, %	44.2	43.0	40.3	42.8	42.2	41.6	40.4	44.2	42.2	42.8
Gearing, %	54.5	61.3	68.2	63.3	62.5	69.3	66.5	54.5	62.5	63.3
Interest-bearing net liabilities, EUR million	906.4	959.0	899.8	849.8	800.1	831.3	776.9	906.4	800.1	849.8
Personnel
Personnel at end of period	4,914	4,976	4,939	4,926	4,937	5,008	4,926	4,914	4,937	4,926
Personnel (average)	4,940	4,964	4,928	4,925	4,970	4,974	4,919	4,944	4,954	4,947
Key exchange rates at end of period
USD	0.975	1.039	1.110	1.133	1.158	1.188	1.173	0.975	1.158	1.133
CAD	1.340	1.343	1.390	1.439	1.475	1.472	1.478	1.340	1.475	1.439
SEK	10.899	10.730	10.337	10.250	10.168	10.111	10.238	10.899	10.168	10.250
CNY	6.937	6.962	7.040	7.195	7.485	7.674	7.681	6.937	7.485	7.195
BRL	5.258	5.423	5.301	6.310	6.263	5.905	6.741	5.258	6.263	6.310
Per share figures, EUR
Earnings per share (EPS), basic 2)	0.38	0.29	0.26	0.05	0.25	0.15	0.25	0.94	0.65	0.71
Earnings per share (EPS), diluted 2)	0.38	0.29	0.26	0.05	0.25	0.15	0.25	0.93	0.65	0.70
Net cash generated from operating activities per share 2)	0.75	0.27	-0.07	0.53	0.57	0.25	0.09	0.95	0.91	1.44
Equity per share 2)	10.77	10.09	8.50	8.68	8.28	7.74	7.53	10.77	8.28	8.68
Number of shares (1,000,000)
Average number of shares, basic 2)	153.4	153.4	153.2	153.1	153.1	153.1	153.0	153.3	153.1	153.1
Average number of shares, diluted 2)	154.3	154.1	154.0	153.9	153.8	153.8	153.7	154.1	153.8	153.8
Number of shares at end of period, basic 2)	153.4	153.4	153.3	153.1	153.1	153.1	153.1	153.4	153.1	153.1
Number of shares at end of period, diluted 2)	154.5	154.2	154.0	154.1	153.8	153.8	153.7	154.5	153.8	154.1

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 ROCE), %	Operative EBIT x 100 3) =	Earnings per share (EPS)	Net profit attributable to equity owners of the parent company =
	Capital employed 4)		Average number of shares
Return on capital employed ( ROCE), %	EBIT x 100 3) =	Net cash generated from operating activities per share	Net cash generated from operating activities =
	Capital employed 4)		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

	2022	2022	2022	2021	2021	2021	2021	2022	2021	2021
EUR million	7-9	4-6	1-3	10-12	7-9	4-6	1-3	1-9	1-9	1-12
ITEMS AFFECTING COMPARABILITY IN EBITDA AND IN EBIT
Operative EBITDA	152.5	122.1	120.0	97.8	115.9	107.3	104.6	394.6	327.8	425.5
Restructuring and streamlining programs	0.1	0.1	-3.1	-0.1	-6.2	-4.7	-1.4	-2.9	-12.2	-12.3
Transaction and integration expenses in acquisition	-15.6	0.0	0.0	-0.1	0.0	0.0	0.0	-15.6	0.0	-0.1
	0.0	2.0	0.0	-28.1	0.0	0.0	-0.2	2.0	-0.2	-28.3
Divestment of businesses and other disposals
Other items	0.3	-0.9	-3.5	0.0	-0.1	-11.5	0.0	-4.1	-11.6	-11.6
Total items affecting comparability	-15.3	1.2	-6.5	-28.3	-6.3	-16.2	-1.6	-20.6	-24.1	-52.4
EBITDA	137.3	123.2	113.5	69.5	109.5	91.1	103.0	374.0	303.7	373.2
Operative EBIT	99.5	69.7	68.9	47.0	64.5	58.2	55.7	238.1	178.4	225.4
Total items affecting comparability in EBITDA	-15.3	1.2	-6.5	-28.3	-6.3	-16.2	-1.6	-20.6	-24.1	-52.4
Items affecting comparability in depreciation, amortization and impairments	0.3	-1.9	-0.1	-1.2	-1.7	-0.1	0.0	-1.7	-1.9	-3.0
Operating profit (EBIT)	84.5	69.1	62.2	17.5	56.4	41.9	54.2	215.8	152.5	170.1
ROCE AND OPERATIVE ROCE
Operative EBIT	99.5	69.7	68.9	47.0	64.5	58.2	55.7	238.1	178.4	225.4
Operating profit (EBIT)	84.5	69.1	62.2	17.5	56.4	41.9	54.2	215.8	152.5	170.1
Capital employed 1)	2,194.9	2,113.6	2,045.4	1,995.0	1,966.7	1,956.1	1,958.8	2,194.9	1,966.7	1,995.0
Operative ROCE, %	13.0	11.8	11.7	11.3	12.0	11.9	11.9	13.0	12.0	11.3
ROCE, %	10.6	9.7	8.7	8.5	9.8	10.0	10.7	10.6	9.8	8.5
NET WORKING CAPITAL
Inventories	474.1	490.6	408.0	352.1	324.3	280.6	268.8	474.1	324.3	352.1
Trade receivables and other receivables	701.4	620.4	530.5	475.2	430.7	406.8	378.0	701.4	430.7	475.2
Excluding financing items in other receivables	-105.9	-78.6	-30.4	-35.4	-29.1	-13.6	-9.9	-105.9	-29.1	-35.4
Trade payables and other liabilities	684.8	647.5	624.5	538.3	510.4	451.8	505.0	684.8	510.4	538.3
Excluding dividend liability and financing items in other liabilities	-82.1	-82.7	-123.1	-33.5	-72.3	-70.0	-121.9	-82.1	-72.3	-33.5
Net working capital	466.9	467.6	406.7	287.2	287.8	292.0	253.8	466.9	287.8	287.2

	2022	2022	2022	2021	2021	2021	2021	2022	2021	2021
EUR million	7-9	4-6	1-3	10-12	7-9	4-6	1-3	1-9	1-9	1-12
INTEREST-BEARING NET LIABILITIES
Non-current interest-bearing liabilities	814.3	811.2	795.5	776.9	778.3	773.4	819.1	814.3	778.3	776.9
Current interest-bearing liabilities	266.1	295.1	258.8	215.3	206.2	203.1	160.8	266.1	206.2	215.3
Interest-bearing liabilities	1,080.4	1,106.3	1,054.4	992.2	984.5	976.6	979.9	1,080.4	984.5	992.2
Cash and cash equivalents	173.9	147.3	154.5	142.4	184.4	145.3	203.0	173.9	184.4	142.4
Interest-bearing net liabilities	906.4	959.0	899.8	849.8	800.1	831.3	776.9	906.4	800.1	849.8

1) 12-month rolling average

NOTES OF INTERIM REPORT 2022

1. QUARTERLY SEGMENT INFORMATION

	2022	2022	2022	2021	2021	2021	2021	2022	2021	2021
EUR million	7-9	4-6	1-3	10-12	7-9	4-6	1-3	1-9	1-9	1-12
Revenue
Pulp & Paper	537.3	487.6	446.5	420.4	391.3	378.4	369.5	1,471.4	1,139.2	1,559.6
Industry & Water	434.6	373.8	321.5	297.8	301.4	279.1	236.6	1,129.9	817.0	1,114.8
Total	971.9	861.4	768.1	718.2	692.7	657.5	606.1	2,601.3	1,956.2	2,674.4
Operative EBITDA
Pulp & Paper	92.3	73.6	71.3	60.5	63.5	57.8	62.9	237.1	184.3	244.7
Industry & Water	60.3	48.5	48.8	37.3	52.3	49.5	41.7	157.5	143.5	180.8
Total	152.5	122.1	120.0	97.8	115.9	107.3	104.6	394.6	327.8	425.5
Items affecting comparability in EBITDA
Pulp & Paper	-15.1	1.3	-4.8	-28.9	-1.3	-15.6	-0.8	-18.7	-17.6	-46.5
Industry & Water	-0.2	-0.1	-1.7	0.6	-5.0	-0.6	-0.8	-2.0	-6.5	-5.9
Total	-15.3	1.2	-6.5	-28.3	-6.3	-16.2	-1.6	-20.6	-24.1	-52.4
EBITDA
Pulp & Paper	77.2	74.9	66.4	31.6	62.3	42.2	62.2	218.5	166.7	198.3
Industry & Water	60.1	48.4	47.1	37.9	47.3	48.9	40.8	155.5	137.0	174.9
Total	137.3	123.2	113.5	69.5	109.5	91.1	103.0	374.0	303.7	373.2
Operative EBIT
Pulp & Paper	61.8	42.8	40.7	30.4	32.5	28.1	33.2	145.3	93.8	124.3
Industry & Water	37.7	26.9	28.2	16.6	31.9	30.1	22.5	92.8	84.6	101.2
Total	99.5	69.7	68.9	47.0	64.5	58.2	55.7	238.1	178.4	225.4

	2022	2022	2022	2021	2021	2021	2021	2022	2021	2021
EUR million	7-9	4-6	1-3	10-12	7-9	4-6	1-3	1-9	1-9	1-12
Items affecting comparability in EBIT
Pulp & Paper	-14.9	-0.6	-4.9	-28.9	-1.3	-15.7	-0.8	-20.4	-17.7	-46.6
Industry & Water	-0.2	-0.1	-1.7	-0.6	-6.8	-0.6	-0.8	-2.0	-8.2	-8.8
Total	-15.0	-0.7	-6.7	-29.5	-8.0	-16.3	-1.6	-22.3	-25.9	-55.4
Operating profit (EBIT)
Pulp & Paper	47.0	42.3	35.7	1.6	31.2	12.4	32.4	125.0	76.1	77.7
Industry & Water	37.5	26.8	26.5	16.0	25.2	29.5	21.7	90.8	76.4	92.4
Total	84.5	69.1	62.2	17.5	56.4	41.9	54.2	215.8	152.5	170.1

2. CHANGES IN PROPERTY, PLANT, AND EQUIPMENT

3. CHANGES IN GOODWILL AND OTHER INTANGIBLE ASSETS

EUR million	1-9/2022	1-9/2021	1-12/2021
Net book value at beginning of period	1,063.0	1,011.4	1,011.4
Purchases of subsidiaries and asset acquisitions	—	—	—
Increases	97.1	88.3	158.8
Decreases	-4.5	—	-0.2
Depreciation and impairments	-114.8	-107.7	-143.9
Transferred to assets classified as held-for-sale	-5.2	—	—
Exchange rate differences and other changes	50.1	24.5	36.9
Net book value at end of period	1,085.7	1,016.5	1,063.0

EUR million	1-9/2022	1-9/2021	1-12/2021
Net book value at beginning of period	580.7	582.1	582.1
Purchases of subsidiaries and asset acquisitions	—	—	—
Increases	11.0	5.9	9.9
Decreases	—	—	—
Amortization and impairments	-16.2	-18.2	-25.2
Transferred to assets classified as held-for-sale	-13.9	—	—
Exchange rate differences and other changes	22.4	9.6	13.9
Net book value at end of period	584.1	579.3	580.7

EUR million	1-9/2022	1-9/2021	1-12/2021
Net book value at beginning of period	135.8	121.0	121.0
Increases	31.9	30.3	42.5
Depreciation and impairments	-27.2	-25.3	-34.1
Transferred to assets classified as held-for-sale	-0.5	—	—
Exchange rate differences and other changes	10.3	4.5	6.4
Net book value at end of period	150.3	130.5	135.8

5. DERIVATIVE INSTRUMENTS

EUR million	9/30/2022		12/31/2021
Currency derivatives	Nominal value	Fair value	Nominal value	Fair value
Forward contracts	662.1	-5.4	496.3	-7.1
of which cash flow hedge	73.7	-3.6	62.0	-1.4
Other derivatives	GWh	Fair value	GWh	Fair value
Electricity forward contracts, bought	1,288.5	139.3	1,626.1	32.5
of which cash flow hedge	1,288.5	139.3	1,626.1	32.5

The fair values of the publicly traded instruments are based on 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	9/30/2022			12/31/2021
Fair value hierarchy	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Non-current assets
Other shares	—	—	401.3	401.3	—	—	260.0	260.0
Other investments	—	6.8	—	6.8	—	7.3	—	7.3
Other derivatives, hedge accounting	—	42.4	—	42.4	—	—	—	—
Current assets
Currency derivatives	—	7.9	—	7.9	—	1.3	—	1.3
Currency derivatives, hedge accounting	—	0.4	—	0.4	—	0.1	—	0.1
Other derivatives, hedge accounting	—	96.9	—	96.9	—	32.5	—	32.5
Other receivables	—	0.3	—	0.3	—	0.3	—	0.3
Trade receivables	—	508.1	—	508.1	—	373.0	—	373.0
Cash and cash equivalents	—	173.9	—	173.9	—	142.4	—	142.4
Total	—	836.8		401.3 1,238.0	—	557.0	260.0	817.0

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 includes mainly the shares of Pohjolan Voima and Teollisuuden Voima.

Level 3 specification on assets:

EUR million	9/30/2022	12/31/2021
Carrying value at beginning of period	260.0	212.3
Effect on other comprehensive income	141.2	50.2
Increases	—	1.0
Decreases	—	-3.5
Carrying value at end of period	401.3	260.0

In Q2 2022, fair value of Pohjolan Voima and Teollisuuden Voima shares increased mainly due to higher electricity prices. The shares has been recognized at fair value according to the valuation method described in the Note 3.5 Other Shares in Annual Financial Statement 2021.

7. FAIR VALUE OF FINANCIAL LIABILITIES

EUR million	9/30/2022			12/31/2021
Fair value hierarchy	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Non-current liabilities
Interest-bearing liabilities	—	681.3	—	681.3	—	706.7	—	706.7
Current portion of interest bearing liabilities	—	—	—	—	—	54.7	—	54.7
Other liabilities	—	9.6	—	9.6	—	9.4	—	9.4
Current portion of other liabilities	—	6.9	—	6.9	—	6.9	—	6.9
Lease liabilities	—	121.1	—	121.1	—	108.1	—	108.1
Current portion of lease liabilities	—	31.7	—	31.7	—	28.7	—	28.7
Other derivatives, hedge accounting	—	—	—	—	—	0.0	—	0.0
Current liabilities
Interest-bearing loans	—	227.5	—	227.5	—	131.9	—	131.9
Other liabilities	—	36.7	—	36.7	—	23.5	—	23.5
Currency derivatives	—	9.7	—	9.7	—	6.9	—	6.9
Currency derivatives, hedge accounting	—	4.1	—	4.1	—	1.6	—	1.6
Other derivatives, hedge accounting	—	—	—	—	—	—	—	—
Trade payables	—	300.1	—	300.1	—	285.5	—	285.5
Total		— 1,428.6		— 1,428.6		— 1,364.1		— 1,364.1

8. ASSETS HELD FOR SALE

Assets classified as held for sale

EUR million	9/30/2022	9/30/2021	12/31/2021
Goodwill	0.0	—	—
Intangible assets	1.8	—	—
Property, plant and equipment	5.2	—	—
Right-of-use assets	0.5	—	—
Inventories	16.1	—	—
Total	23.6	—	—

Liabilities directly associated with the assets classified as held for sale

EUR million	9/30/2022	9/30/2021	12/31/2021
Liabilities of defined benefit plans	0.5	—	—
Liabilities related to right-of-use assets	0.5	—	—
Total	1.0	—	—

In Q3 2022, Kemira signed an agreement to sell its colorants business to US based ChromaScape, LLC. Revenue of the business in 2021 was approximately 50 million euro and 67 employees will be transferred to ChromaScape as part of transaction which is expected to be closed in the first quarter of 2023. Scope includes also one Kemira manufacturing site at Goose Creek, Bushy Park in South Carolina. Kemira will keep its APAC related colorants business.

The assets and liabilities related to a sale of the colorants business has classified as disposal group held for sale according to IFRS 5. As a result, the assets and liabilities related to sale of colorants business are presented in the consolidated balance sheet on separate lines. The reclassification had an effect on the reported values of balance sheet items and expected loss from the sale of the colorants business was EUR 16 million.

9. CONTINGENT LIABILITIES

EUR million	9/30/2022	9/30/2021	12/31/2021
Guarantees
On behalf of own commitments	115.3	93.0	95.1
On behalf of associates	12.1	12.2	12.5
On behalf of others	2.5	1.8	1.8
Other obligations
On behalf of own commitments	0.7	0.9	0.9
On behalf of others	16.3	16.3	16.3

The most significant off-balance sheet investments commitments

Major amounts of contractual investment commitments for the acquisition of property, plant, and equipment on September 30, 2022 were about EUR 34 million for plant investments.

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

10. RELATED PARTY

Pension Fund Neliapila, which is a related party, paid a surplus return of EUR 10 million to Kemira Group companies during Q1 2022. Apart from these, transactions with related parties have not changed materially.

11. BASIS OF PREPARATION AND ACCOUNTING POLICIES

This unaudited interim financial statements has 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 2021. The interim financial statements should be read in conjunction with the annual financial statements for 2021.

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 judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses. Actual results may differ from these estimates.

EFFECTS OF THE UKRAINE WAR ON THE INTERIM REPORT

At the end of September 2022, Kemira had no operative business or personnel left in Russia. During January–September 2022, Kemira recorded EUR 5.8 million of losses related to its exit from Russia, which were mostly related to PP&E writedowns, credit losses and other liabilities. At the end of September 2022, Kemira had EUR 10.0 million in cash and cash equivalents in Russia. Kemira is looking at various options to repatriate funds from Russia. The cash is denominated in Russian roubles.