January-June 2024 Half-year Financial Report

January-June 2024 Half-year Financial Report Financials of January-June 2024

Executive summary	3	Consolidated Income Statement	21
Key figures and ratios	6	Consolidated Statement of Comprehensive Income	21
Financial performance Q2 2024	7	Consolidated Balance Sheet	22
Financial performance January-June 2024	9	Consolidated Statement of Cash Flow	23
Financial position and cash flow	11	Consolidated Statement of Changes in Equity	24
Capital expenditure	11
Research & Development	11	Group key figures	26
Human resources	11	Definitions of key figures	29
Sustainability	12	Reconciliation to IFRS figures	30
Segments	13
Pulp & Paper	13	Notes for January-June 2024 Half-year Financial Report
Industry & Water	15	1 Quarterly segment information	32
Kemira Oyj's shares and shareholders	17	2 Changes in property, plants and equipment	34
Authorization	17	3 Changes in goodwill and other intangible assets	34
Dividend	17	4 Changes in right-of-use assets	34
Short-term risks and uncertainties	17	Derivative instruments 5	35
Events after the review period	18	6 Fair value of financial assets	35
Outlook for 2024	19	7 Fair value of financial liabilities	36

Executive summary	3	Consolidated Income Statement	21
Key figures and ratios	6	Consolidated Statement of Comprehensive Income	21
Financial performance Q2 2024	7	Consolidated Balance Sheet	22
Financial performance January-June 2024	9	Consolidated Statement of Cash Flow	23
Financial position and cash flow	11	Consolidated Statement of Changes in Equity	24
Capital expenditure	11
Research & Development	11	Group key figures	26
Human resources	11	Definitions of key figures	29

Industry & Water	15	1 Quarterly segment information	32
Kemira Oyj's shares and shareholders	17	2 Changes in property, plants and equipment	34
Authorization	17	3 Changes in goodwill and other intangible assets	34
Dividend	17	4 Changes in right-of-use assets	34
Short-term risks and uncertainties	17	Derivative instruments 5	35
Events after the review period	18	6 Fair value of financial assets	35
Outlook for 2024	19	7 Fair value of financial liabilities	36
		8 Business combinations	37
		9 Assets held for sale	37
		10 Contingent liabilities and litigation	38
		11 Related party	38
		12 Basis of preparation and accounting principles	39
		Critical accounting estimates and judgments	39
		13 Events after the review period	39

Considerable volume growth and profitability improvement following continued end-market recovery

Second 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 H1 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 the relevant parts of the report, which reflect the underlying business performance of Kemira's Pulp & Paper and Industry & Water segments. Kemira's 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.

Q2 2024 performance, unadjusted for Oil & Gas divestment

Revenue decreased by 13% to EUR 733.4 million (840.1).
Operative EBITDA decreased by 7% to EUR 140.5 million (151.0). The operative EBITDA margin increased to 19.2% (18.0%). The operative EBITDA margin improved in both segments, particularly in the Industry & Water segment. EBITDA decreased by 7% to EUR 137.1 million (147.4). 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 7% to EUR 94.0 million (100.9). EBIT decreased by 7% to EUR 90.7 million (97.2).
Cash flow from operating activities was strong at EUR 109.4 million (142.9).
EPS (diluted) decreased by 4% to EUR 0.40 (0.42) due to the divestment of Oil & Gas and Kemira's decision to close its operations in Argentina.

Q2 2024 performance, Oil & Gas divestment adjusted

The Oil & Gas divestment adjusted revenue increased by 3% to EUR 733.4 million (709.1). Revenue in local currencies, excluding acquisitions and divestments, increased by 1% as growth in the Industry & Water segment compensated for the slight decline in the Pulp & Paper segment. Sales volumes increased considerably year-on-year while sales prices declined, particularly in energy-intensive pulp and bleaching chemicals. Sequentially, sales volumes increased slightly and sales prices declined slightly.
The Oil & Gas divestment adjusted operative EBITDA increased by 5% to EUR 140.5 million (133.3), following improvement in both segments. The Oil & Gas divestment adjusted operative EBITDA margin increased to 19.2% (18.8%).
The Oil & Gas divestment adjusted operative EBIT increased by 5% to EUR 94.0 million (89.6).

January-June 2024 performance, unadjusted for Oil & Gas divestment

Revenue decreased by 14% to EUR 1,496.7 million (1,746.1).
Operative EBITDA decreased by 12% to EUR 303.0 million (343.7). The operative EBITDA margin increased to 20.2% (19.7%), driven by improvement in the Industry & Water segment. EBITDA decreased by 12% to EUR 291.2 million (331.5). 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 13% to EUR 211.6 million (242.8). EBIT decreased by 13% to EUR 199.9 million (230.6).
Cash flow from operating activities was strong, at EUR 207.1 million (239.6).
EPS (diluted) decreased by 13% to EUR 0.89 (1.02), mainly due to the divestment of Oil & Gas.

January-June 2024 performance, Oil & Gas divestment adjusted

The Oil & Gas divestment adjusted revenue decreased by 3% to EUR 1,452.2 million (1,504.6). Revenue in local currencies, excluding acquisitions and divestments, decreased by 4% following revenue decline in the Pulp & Paper segment. Sales volumes increased in both segments. Sales prices decreased, particularly in Pulp & Paper, as sales prices for energyintensive pulp and bleaching chemicals declined, relative to an elevated comparison period.
The Oil & Gas divestment adjusted operative EBITDA decreased by 1% to EUR 299.7 million (302.8) due to lower operative EBITDA in Pulp & Paper. The Oil & Gas divestment adjusted operative EBITDA margin was strong at 20.6% (20.1%) following improvement in Industry & Water.
The Oil & Gas divestment adjusted operative EBIT decreased by 3% to EUR 208.4 million (214.0).

Outlook for 2024 (upgraded on June 10, 2024)

R e v e n u e

Kemira's revenue is expected to be between EUR 2,800 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 540 and EUR 640 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 ( u p d a t e d o n J u n e 1 0 , 2 0 2 4 )

Kemira's end-market demand (in volumes) is expected to grow in 2024 following expected gradual demand recovery in the pulp and paper market. The water treatment market is also expected to grow 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. 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.

Previous outlook for 2024 (published on April 26, 2024)

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 t h e o u t l o ok

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:

"Our end-markets continued to recover during the second quarter and Kemira's performance was solid, particularly in Industry & Water. I was pleased to see considerable year-on-year sales volume growth as well as slight volume growth from the previous quarter. Organic revenue growth during the quarter was 1% as good growth in Industry & Water compensated for the slight decline in Pulp & Paper. As in Q1 2024, sales prices declined, mainly due to lower sales prices for energy-intensive pulp and bleaching chemicals. The Oil & Gas divestment adjusted operative EBITDA increased to EUR 140 million during the quarter. The operative EBITDA margin was 19.2% in Q2 2024, driven by continued strong performance in Industry & Water. In addition, cash flow continued to be strong, which demonstrates our resilient and cash-generative business model.

This past quarter marked my first full quarter as Kemira's President & CEO. We continued to review our strategic initiatives and financial targets during the quarter, to accelerate the execution of our strategy. Profitable growth remains at the core of our strategy both organically and inorganically; a target which is well supported by our record-strong balance sheet. In early July, we announced our entry into the activated carbon market for micropollutant removal by acquiring an activated carbon reactivation facility in the UK. This is our first step in this market, which we find attractive due to its growth profile. We are in a good position to enter this attractive growth market thanks to our strong market positions in wastewater treatment in Europe and in the US. In early July, we also announced a coagulant capacity expansion in Spain, to meet increasing market needs for biogas applications and phosphorus removal in particular. This expansion is yet another step on our way to significantly expand our water treatment business.

The pulp and paper market continued to recover during the second quarter. Kemira's Pulp & Paper segment's sales volumes increased by about 10% year-on-year while sales prices declined year-on-year, particularly in energy-intensive pulp and bleaching chemicals. As a result, our organic growth during Q2 2024 was slightly negative. The operative EBITDA margin was 16.5%, year-on-year improvement, but lower sequentially following seasonal patterns in pricing and higher impact from annual maintenance breaks.

In Industry & Water, market demand continued to recover, particularly in industrial water treatment. Kemira's Industry & Water segment's organic growth was 3% during the quarter, driven by higher sales volumes. We saw higher sales volumes both year-on-year and sequentially. Sales prices declined slightly, both year-on-year and sequentially. The segment's consistently strong margin performance continued during the quarter, with the operative EBITDA margin at 22.6%.

Going forward, we look at the rest of 2024 with confidence. We upgraded our outlook for 2024 in mid-June, thanks to the continued recovery of our end-markets. As announced in June, we expect revenue to be between EUR 2,800 and 3,200 million and operative EBITDA to be between EUR 540 and 640 million in 2024. In terms of the next steps in our strategy, we will host a Capital Markets Day on September 26 where we will give an update on strategic initiatives as well as on financial targets."

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

performance criteria in remuneration.

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec		Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
EUR million	2024	2023	2024	2023	2023	EUR million	2024	2023	2024	2023	2023
Revenue	733.4	840.1	1,496.7	1,746.1	3,383.7	Capital employed*	2,032.1	2,221.5	2,032.1	2,221.5	2,155.5
Revenue, O&G divestment adjusted	733.4	709.1	1,452.2	1,504.6	2,889.0	Capital employed*, O&G divestment adjusted	1,897.8	1,879.6	1,897.8	1,879.6	1,856.0
Operative EBITDA	140.5	151.0	303.0	343.7	666.7	Operative ROCE*, %	21.3	21.0	21.3	21.0	21.5
Operative EBITDA, O&G divestment adjusted	140.5	133.3	299.7	302.8	595.9	Operative ROCE*, %, O&G divestment adjusted	21.6	22.4	21.6	22.4	22.4
Operative EBITDA, %	19.2	18.0	20.2	19.7	19.7	ROCE*, %	15.0	20.1	15.0	20.1	15.6
Operative EBITDA %, O&G divestment adjusted	19.2	18.8	20.6	20.1	20.6	Cash flow from operating activities	109.4	142.9	207.1	239.6	546.0
EBITDA	137.1	147.4	291.2	331.5	540.0	Capital expenditure, excl. acquisitions	35.0	48.8	61.2	77.9	204.9
EBITDA, %	18.7	17.5	19.5	19.0	16.0	Capital expenditure, excl. acquisitions, O&G divestment adjusted	35.0	44.4	61.2	71.1	187.7
Operative EBIT	94.0	100.9	211.6	242.8	463.0	Capital expenditure	35.0	48.8	61.2	79.7	206.8
Operative EBIT, O&G divestment adjusted	94.0	89.6	208.4	214.0	415.5	Cash flow after investing activities	70.4	103.3	249.2	169.8	349.3
Operative EBIT, %	12.8	12.0	14.1	13.9	13.7	Equity ratio, % at period-end	53	48	53	48	48
Operative EBIT %, O&G divestment adjusted	12.8	12.6	14.4	14.2	14.4	Equity per share, EUR	11.03	10.51	11.03	10.51	10.84
EBIT	90.7	97.2	199.9	230.6	336.4	Gearing, % at period-end	21	41	21	41	32
EBIT, %	12.4	11.6	13.4	13.2	9.9	*12-month rolling average
Net profit for the period	65.4	67.7	144.4	163.2	211.3
Earnings per share, diluted, EUR	0.40	0.42	0.89	1.02	1.28

Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec		Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
2024	2023	2024	2023	2023	EUR million	2024	2023	2024	2023	2023







					Capital expenditure, excl. acquisitions, O&G divestment adjusted	35.0	44.4	61.2	71.1	187.7

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 on 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.

Operative EBITDA and operative EBITDA margin

Financial performance in Q2 2024

Revenue decreased by 13% due to the divestment of Oil & Gas, but revenue in local currencies, excluding acquisitions and divestments, increased by 1%. Revenue growth in local currencies, excluding acquisitions and divestments, in the Industry & Water segment compensated for the slight decline in the Pulp & Paper segment. Sales volumes increased considerably year-on-year while sales prices declined, particularly in energy-intensive pulp and bleaching chemicals. Sequentially, sales volumes increased slightly while sales prices declined slightly.

Revenue	Apr-Jun 2024 EUR million	Apr-Jun 2023 EUR million	∆%	Organic growth, %	Currency impact, %	Acq. & div. impact, %
Pulp & Paper	412.4	421.2	-2	-1	0	-1
Industry & Water	321.0	418.9	-23	+3	0	-31
Total	733.4	840.1	-13	+1	0	-16
Industry & Water, O&G divestment adjusted	321.0	287.9	+12
Total, O&G divestment adjusted	733.4	709.1	+3

Industry & Water, O&G divestment adjusted revenue, of EUR 321 million includes contract manufacturing for Sterling Specialty Chemicals (acquirer of Kemira's Oil & Gas business). Organic growth excludes the impact of contract manufacturing for Sterling Specialty Chemicals.

Operative EBITDA decreased by 7% to EUR 140.5 million (151.0) due to the divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBITDA increased by 5%, to EUR 140.5 million (133.3), following improvement in both segments. Successful variable cost management and higher sales volumes compensated for lower sales prices. The operative EBITDA margin increased to 19.2% (18.0%) following improvement in both segments, particularly in the Industry & Water segment. The Oil & Gas divestment adjusted operative EBITDA margin increased to 19.2% (18.8%).

Variance analysis, EUR million	Apr-Jun
Operative EBITDA, 2023	151.0
Sales volumes	+27.6
Sales prices	-51.8
Variable costs	+47.6
Fixed costs	-11.7
Currency exchange	-2.2
Others	-1.4
Divestments	-18.8
Operative EBITDA, 2024	140.5

	Apr-Jun 2024	Apr-Jun 2023		Apr-Jun 2024	Apr-Jun 2023
Operative EBITDA	EUR million	EUR million	∆%	%-margin	%-margin
Pulp & Paper	67.9	65.2	+4	16.5	15.5
Industry & Water	72.6	85.8	-15	22.6	20.5
Total	140.5	151.0	-7	19.2	18.0
Industry & Water, O&G divestment adjusted	72.6	68.1	+7	22.6	23.7
Total, O&G divestment adjusted	140.5	133.3	+5	19.2	18.8

EBITDA decreased by 7% to EUR 137.1 million (147.4). The difference between it and operative EBITDA is explained by items affecting comparability, which were mainly related to the divestment of Oil & Gas. Items affecting comparability in the comparison period were mainly related to portfolio actions, including a loss from the divestment of most of our colorants business.

Items affecting comparability, EUR million	Apr-Jun 2024	Apr-Jun 2023
Within EBITDA	-3.3	-3.7
Pulp & Paper	-0.9	-1.3
Industry & Water	-2.4	-2.4
Within depreciation, amortization and impairments	0.0	0.0
Pulp & Paper	0.0	0.0
Industry & Water	0.0	0.0
Total items affecting comparability in EBIT	-3.3	-3.7

Depreciation, amortization and impairments were EUR 46.4 million (50.1), including EUR 2.2 million (1.8) in amortization of purchase price allocation.

Operative EBIT decreased by 7% due to the divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBIT increased by 5%. EBIT decreased by 7%, and the difference between it and operative EBIT is explained by items affecting comparability, which are described in the EBITDA section above. Items affecting comparability in the comparison period are also described above.

Net finance costs totaled EUR -6.6 million (-12.1). The decrease was driven by lower net debt and resulting lower net interest expenses. Income taxes were EUR -18.7 million (-17.4).

Net profit for the period decreased by 3%, mainly due to the divestment of Oil & Gas and Kemira's decision to close its operations in Argentina.

Financial performance in January-June 2024

Revenue decreased by 14% due to the divestment of Oil & Gas, but revenue in local currencies, excluding acquisitions and divestments, decreased by 4%. This was due to decline in the Pulp & Paper segment as sales prices for energy-intensive pulp and bleaching chemicals declined, relative to an elevated comparison period. Sales volumes increased in both segments. Sales prices declined, particularly in energy-intensive pulp and bleaching chemicals.

	Jan-Jun 2024	Jan-Jun 2023		Organic	Currency	Acq. & div.
Revenue	EUR million	EUR million	∆%	growth, %	impact, %	impact, %
Pulp & Paper	835.3	925.8	-10	-7	0	-2
Industry & Water	661.5	820.3	-19	0	0	-24
Total	1,496.7	1,746.1	-14	-4	0	-12
Industry & Water, O&G divestment
adjusted	616.9	578.8	+7
Total, O&G divestment adjusted	1,452.2	1,504.6	-3

Industry & Water, O&G divestment adjusted revenue, of EUR 616.9 million includes contract manufacturing for Sterling Specialty Chemicals (acquirer of Kemira's Oil & Gas business). Organic growth excludes the impact of contract manufacturing for Sterling Specialty Chemicals.

Geographically, the revenue split was as follows: EMEA (Europe, Middle East, Africa) 52% (50%), the Americas 38% (42%), and Asia Pacific 10% (8%).

Operative EBITDA decreased by 12% to EUR 303.0 million (343.7), mainly due to the divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBITDA decreased by 1%, to EUR 299.7 million (302.8), due to lower operative EBITDA in Pulp & Paper. The Oil & Gas divestment adjusted operative EBITDA in Industry & Water grew significantly. The operative EBITDA margin increased to 20.2% (19.7%). The Oil & Gas adjusted operative EBITDA margin was strong, at 20.6% (20.1%), following improvement in Industry & Water.

Variance analysis, EUR million	Jan-Jun
Operative EBITDA, 2023	343.7
Sales volumes	+34.4
Sales prices	-134.7
Variable costs	+120.2
Fixed costs	-16.4
Currency exchange	-2.4
Others	-2.4
Divestments	-39.4
Operative EBITDA, 2024	303.0

	Jan-Jun 2024	Jan-Jun 2023		Jan-Jun 2024	Jan-Jun 2023
Operative EBITDA	EUR million	EUR million	∆%	%-margin	%-margin
Pulp & Paper	156.1	174.6	-11	18.7	18.9
Industry & Water	146.9	169.1	-13	22.2	20.6
Total	303.0	343.7	-12	20.2	19.7
Industry & Water, O&G divestment adjusted	143.6	128.2	+12	23.3	22.1
Total, O&G divestment adjusted	299.7	302.8	-1	20.6	20.1

EBITDA decreased by 12%, to EUR 291.2 million (331.5). 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 period mainly consisted of a loss from the divestment of most of our colorants business.

Items affecting comparability, EUR million	Jan-Jun 2024	Jan-Jun 2023
Within EBITDA	-11.8	-12.1
Pulp & Paper	-1.1	-9.8
Industry & Water	-10.7	-2.4
Within depreciation, amortization and impairments	0.0	0.0
Pulp & Paper	0.0	0.0
Industry & Water	0.0	0.0
Total	-11.8	-12.1

Depreciation, amortization, and impairments were EUR 91.3 million (100.9), including the EUR 2.9 million (3.7) amortization of purchase price allocation.

Operative EBIT decreased by 13% compared to the previous year, mainly due to the divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBIT decreased by 3%. EBIT decreased by 13% and the difference between the two is explained by items affecting comparability, which are described in the EBITDA section above. Items affecting comparability in the comparison period are also described in the EBITDA section above.

Net finance costs totaled EUR -14.9 million (-22.9). The decrease was driven by lower net debt and resulting lower net interest expenses. Income taxes were EUR -40.5 million (-44.6), with the reported tax rate being 22% (21%). Net profit for the period decreased by 11%, mainly due to the divestment of Oil & Gas.

Financial position and cash flow

Cash flow from operating activities in January-June 2024 was strong, at EUR 207.1 million (239.6). Net working capital remained rather stable during the first half of 2024. Cash flow after investing activities increased to EUR 249.2 million (169.8). 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 753.0 million (965.1), including lease liabilities of EUR 129.1 million (149.9). The average interest rate of the Group's interestbearing loan portfolio (excluding leases) was 3.1% (2.6%), and the duration was 17 months (25). Fixed-rate loans accounted for 89% (96%) of net interest-bearing liabilities, including lease liabilities.

Short-term liabilities maturing in the next 12 months amounted to EUR 258.9 million. On June 30, 2024, cash and cash equivalents totaled EUR 384.6 million (299.5). During Q2 2024, Kemira repaid a EUR 200 million bond that matured in May 2024. The Group also 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 368.4 million (665.5), including lease liabilities. The equity ratio was 53% (48%), while gearing was 21% (41%). At the end of June 2024, net debt / operative EBITDA was at a record-strong level of 0.6.

Capital expenditure

In January-June 2024, capital expenditure excluding acquisitions decreased by 21%, to EUR 61.2 million (77.9). The Oil & Gas divestment adjusted capital expenditure decreased by 14%, to EUR 61.2 million (71.1). Capital expenditure excluding acquisitions (capex) can be broken down as follows: expansion capex 16% (22%), improvement capex 26% (29%), and maintenance capex 58% (49%).

Research and Development

In January-June 2024, total research and development expenses were EUR 16.0 million (17.5), representing 1.1% (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 being worked in collaboration with external partners.

Human resources

At the end of the period, Kemira Group had 4,783 employees (4,989). Kemira had 860 (845) employees in Finland, 1,741 (1,727) employees elsewhere in EMEA, 1,247 (1,488) in the Americas, and 935 (929) in APAC. The number of employees decreased 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 Q2 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 2 2 0 2 4 SAFETY

TRIF* in January-June 2024 was 3.4 (1-6/2023: 2.8) with the Q2-specific TRIF was 2.4. Actions taken since the start of the year have improved safety performance. In Q2 2024, Kemira started a global safety training program with the aim of training all supervisors globally by the end of the year.

PEOPLE

80% of Kemira's employees participated in Kemira's employee satisfaction survey, MyVoice, in May 2024. An employee engagement score of 80 continued to be strong and was 7 points above the external manufacturing benchmark of 73. Kemira's target is to reach the top 10% cross industry benchmark for Diversity & Inclusion (DEI) by the end of 2025, measured by our Inclusion Index with the current gap to the top 10% being 3 points. During the second quarter of 2024, further DEI workshops and DEI people manager webinars were conducted. We also launched a very successful employee-led DEI campaign called Invisible Bonds and ran many activities with our KemPride network during Q2 2024.

CIRCULARITY

Kemira continued to progress with its renewable solutions strategy. Kemira continued to see strong demand for its biomass-balanced products in Europe and also received a first water treatment customer order in North America as well as the first sales in the packaging industry for biomass-balanced products. Work to reduce waste also continued with the identification of new waste reduction opportunities and progress with R&D projects which aim to reduce waste through converting waste in to raw material for production, for example.

WATER

Kemira updated its water risk assessment during the quarter and no material short-term, sitespecific water stress and scarcity-related risks were identified. The number of Kemira sites located in water stress areas increased from 8 sites to 13 sites compared to 2023 due to new areas defined as water stress areas by WRI's Aqueduct tool which Kemira uses for the assessment. Work to reduce freshwater use also continued through site specific projects. CLIMATE

Kemira submitted its emission reduction targets for Scope 1+2 and Scope 3 to the Science Based Targets Initiative (SBTi) for validation in May. Validation is expected by the end of the year. Kemira also continued its efforts to decarbonize its energy sources during H1 2024, e.g. in Mojave in the United States on-site solar power now provides 100% of the electricity demand for the site.

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 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.

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
EUR million	2024	2023	2024	2023	2023
Revenue	412.4	421.2	835.3	925.8	1,748.2
Operative EBITDA	67.9	65.2	156.1	174.6	330.9
Operative EBITDA, %	16.5	15.5	18.7	18.9	18.9
EBITDA	67.0	63.9	155.0	164.8	308.0
EBITDA, %	16.2	15.2	18.6	17.8	17.6
Operative EBIT	38.0	37.6	97.8	117.9	216.3
Operative EBIT, %	9.2	8.9	11.7	12.7	12.4
EBIT	37.1	36.3	96.7	108.1	193.4
EBIT, %	9.0	8.6	11.6	11.7	11.1
Capital employed*	1,287.2	1,310.2	1,287.2	1,310.2	1,282.0
Operative ROCE*, %	15.2	19.9	15.2	19.9	16.9
ROCE*, %	14.1	18.6	14.1	18.6	15.1
Capital expenditure excl. M&A	23.4	31.3	37.9	50.7	124.4
Capital expenditure incl. M&A	23.4	31.3	37.9	52.5	126.2
Cash flow after investing activities	53.5	62.1	115.4	115.8	216.3

*12-month rolling average

S E C O N D Q U A R T E R :

The segment's revenue decreased by 2%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 1% as higher sales volumes were offset by lower sales prices. Sales prices decreased, particularly in energy-intensive pulp and bleaching chemicals. Excluding pulp and bleaching chemicals, sales prices declined somewhat year-on-year. Sales volumes increased by about 10% year-on-year, with growth in all product groups and geographical regions, particularly in the EMEA region. Currencies had no impact. Sequentially sales volumes were stable and sales prices declined slightly.

In EMEA, revenue decreased by 5%. Revenue in local currencies, excluding acquisitions and divestments, decreased by 4%. Sales prices decreased, particularly in energy-intensive pulp and bleaching chemicals. Excluding pulp and bleaching chemicals, sales prices declined

somewhat. Sales volumes increased in all product groups. In the Americas, revenue was stable. Revenue in local currencies, excluding acquisitions and divestments, increased by 2% due to higher sales volumes across product groups. Sales prices decreased somewhat. In APAC, revenue increased by 4%. Revenue in local currencies, excluding acquisitions and divestments, increased by 6%, due to higher sales volumes, particularly in pulp and bleaching chemicals. Sales prices decreased.

Operative EBITDA increased by 4% as successful variable cost management and higher sales volumes more than compensated for lower sales prices. The operative EBITDA margin was 16.5%, year-on-year improvement, but lower sequentially following seasonal patterns in pricing and higher impact from annual maintenance breaks. EBITDA increased by 5%. 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.

J A N U A R Y - J U N E :

The segment's revenue decreased by 10%. Revenue in local currencies, excluding divestments and acquisitions, decreased by 7%, due to lower sales prices, particularly in energy-intensive pulp and bleaching chemicals that declined from an elevated comparison period. Sales volumes increased in all product groups and in all geographical regions.

Operative EBITDA decreased by 11%, as lower sales prices were not fully offset by successful variable cost management and higher sales volumes. The operative EBITDA margin declined slightly to 18.7%.

EBITDA decreased by 6%. The difference between it and operative EBITDA is explained by items affecting comparability. Items affecting comparability in the comparison period were mainly related to a loss from the divestment of most of our colorants business.

Revenue

Operative EBITDA and operative EBITDA margin

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

Industry & Water offers a wide range of innovative solutions to optimize all stages of the water treatment process, while safely achieving water quality targets and meeting constantly tightening regulations. The segment serves both municipal and industrial customers. Kemira's water treatment product portfolio mainly consists of coagulants and polymers which play a critical role in enabling resource-efficient operations at our customers' sites. Kemira has a strong market presence in water treatment in Europe and in North America.

Kemira divested its Oil & Gas-related portfolio on February 2, 2024. Kemira's H1 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.

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
EUR million	2024	2023	2024	2023	2023
Revenue	321.0	418.9	661.5	820.3	1,635.5
Revenue, O&G divestment adjusted	321.0	287.9	616.9	578.8	1,140.9
Operative EBITDA	72.6	85.8	146.9	169.1	335.8
Operative EBITDA, O&G divestment adjusted	72.6	68.1	143.6	128.2	265.0
Operative EBITDA, %	22.6	20.5	22.2	20.6	20.5
Operative EBITDA %, O&G divestment adjusted	22.6	23.7	23.3	22.1	23.2
EBITDA	70.1	83.5	136.2	166.7	232.0
EBITDA, %	21.9	19.9	20.6	20.3	14.2
Operative EBIT	56.0	63.3	113.9	124.8	246.7
Operative EBIT, O&G divestment adjusted	56.0	52.0	110.7	96.1	199.2
Operative EBIT, %	17.5	15.1	17.2	15.2	15.1
Operative EBIT, %, O&G divestment adjusted	17.5	18.1	17.9	16.6	17.5
EBIT	53.6	61.0	103.2	122.5	143.0
EBIT, %	16.7	14.6	15.6	14.9	8.7
Capital employed*	744.9	911.3	744.9	911.3	873.5
Operative ROCE*, %	31.7	22.6	31.7	22.6	28.2
Operative ROCE*, %, O&G divestment adjusted	35.0	28.3	35.0	28.3	34.7
ROCE*, %	16.6	22.4	16.6	22.4	16.4
Capital expenditure excl. M&A	11.6	17.4	23.3	27.2	80.5
Capital expenditure excl. acquisitions, O&G divestment adjusted	11.6	13.1	23.3	20.4	63.4
Capital expenditure incl. M&A	11.6	17.4	23.3	27.2	80.5
Cash flow after investing activities	48.0	65.8	218.2	124.9	242.5

*12-month rolling average

S E C O N D Q U A R T E R :

The segment's revenue decreased by 23% following the divestment of Oil & Gas. Revenue in local currencies, excluding acquisitions and divestments, increased by 3% due to higher sales

volumes in both polymers and coagulants. Sales prices declined in polymers and remained rather stable in coagulants. Currencies had no impact. Sequentially sales volumes increased considerably while sales prices declined slightly.

In EMEA, revenue increased by 1%. Revenue in local currencies, excluding acquisitions and divestments, increased by 2% due to higher sales volumes in all product groups, particularly in polymers. Sales prices decreased. In the Americas, revenue decreased by 43% due to the divestment of Oil & Gas. Revenue in local currencies, excluding acquisitions and divestments, increased by 6% due to higher sales volumes in coagulants. Sales prices also increased. In APAC, revenue decreased by 11%, albeit from a low base.

Operative EBITDA decreased by 15%, following the divestment of Oil & Gas. The operative EBITDA margin increased to 22.6%. The Oil & Gas divestment adjusted operative EBITDA increased by 7%, to EUR 72.6 million (68.1), following successful variable cost management and higher sales volumes. EBITDA decreased by 16%, and the difference to operative EBITDA is explained by items affecting comparability, which were mainly related to the divestment of Oil & Gas. Items affecting comparability in the comparison period were mainly related to portfolio actions.

J A N U A R Y - J U N E :

The segment's revenue decreased by 19%. Revenue in local currencies, excluding acquisitions and divestments, was stable. Sales volumes increased in both polymers and coagulants. Sales prices declined as a whole, but were rather stable in coagulants. Currencies had a positive impact.

Operative EBITDA decreased by 13%, following the divestment of Oil & Gas. The operative EBITDA margin increased to 22.2%. Currencies had a negative impact. The Oil & Gas divestment adjusted operative EBITDA increased by 12%, to EUR 143.6 million (EUR 128.2 million). The Oil & Gas divestment adjusted operative EBITDA margin increased to 23.3% (22.1%), following successful variable cost management and higher sales volumes.

EBITDA decreased by 18% and the difference to operative EBITDA is explained by items affecting comparability, which were mainly related to the divestment of Oil & Gas. Items affecting comparability in the comparison period were mainly related to portfolio actions.

Kemira Oyj's shares and shareholders

On June 30, 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 June 2024, Kemira Oyj had 48,176 registered shareholders (49,659 on December 31, 2023). Non-Finnish shareholders held 38.7% of the shares (34.3% on December 31, 2023), including nominee-registered holdings. Households owned 18.3% of the shares (19.0% on December 31, 2023). Kemira held 1,359,348 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 36% during the reporting period and closed at EUR 22.76 on the Nasdaq Helsinki at the end of June 2024 (16.79 on December 31, 2023). The shares registered a high of EUR 24.58 and a low of EUR 15.96 in January-June 2024 and the average share price was EUR 18.83. The company's market capitalization, excluding treasury shares, was EUR 3,505 million at the end of June 2024 (2,579 on December 31, 2023).

In January-June 2024, Kemira Oyj's share trading turnover on the Nasdaq Helsinki was EUR 525 million (EUR 471 million in January-June 2023). The average daily trading volume was 228,482 shares (237,126 in January-June 2023). The total volume of Kemira Oyj's share trading in January-June 2024 was 36 million shares (37 million shares in January-June 2023), 21% (20% in January-June 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 to below 5% as Solidium Oy sold all the Kemira shares in its possession.

Authorizations

The Annual General Meeting 2024 authorized the Board of Directors to decide upon the repurchase of a maximum of 6,500,000 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 also 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, 2025.

Dividend

The Annual General Meeting 2024 approved the Board of Directors' dividend proposal of EUR 0.68 per share for the financial year 2023, to 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 out on April 4, 2024.

The second installment of 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 will confirm the relevant record and payment dates in this subsequent announcement.

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. Kemira was also 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 H1 2024 financial performance.

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 to Kemira's Management Board

On February 9, 2024, Kemira announced that Harri Eronen has been appointed as Interim President of Kemira's Pulp & Paper segment and as 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 June 10, 2024, Kemira upgraded its outlook for 2024, particularly for operative EBITDA. Kemira's end-markets have continued to recover, and Kemira's strong performance in both segments has continued. Kemira now expects revenue to be between EUR 2,800 and 3,200 million and operative EBITDA to be between EUR 540 and 640 million in 2024. Earlier, Kemira expected revenue to be between EUR 2,700 and EUR 3,200 million and operative EBITDA to be between EUR 480 and EUR 580 million. The assumptions behind Kemira's outlook were also updated.

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 as well as 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

On July 1, 2024, Kemira announced the acquisition of Norit's UK reactivation operations. This acquisition marks the first step for Kemira in expanding in to the activated carbon market for micropollutants removal. The deal is expected to close in Q3 2024.

On July 9, 2024, Kemira announced it is expanding coagulant capacity in Spain to cater for growing demand, particularly for biogas applications and phosphorus removal.

Outlook for 2024 (upgraded on June 10, 2024)

R e v e n u e

Kemira's revenue is expected to be between EUR 2,800 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 540 and EUR 640 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 ( u p d a t e d o n J u n e 1 0 , 2 0 2 4 )

Previous outlook for 2024 (published on April 26, 2024)

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 t h e o u t l o o k

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, July 16, 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 and 2025

Interim report January-September 2024	October 25, 2024
Financial Statements Bulletin for the year 2024	February 11, 2025
Interim report January-March 2025	April 25, 2025
Half-year financial report January-June 2025	July 18, 2025
Interim report January-September 2025	October 24, 2025

The Annual Report 2024 will be published during the week starting on February 17, 2025. The Annual General Meeting is scheduled for Thursday, March 20, 2025.

Capital Markets Day on September 26, 2024

Kemira would like to invite institutional investors, analysts and relationship bankers to a Capital Markets Day, which will take place in Helsinki on Thursday September 26, 2024. Kemira will provide an update on its strategy and financial targets at the event, which will be attended by Kemira's President & CEO Antti Salminen, CFO Petri Castrén and other members of the Management Board. In addition to the physical event, there will a live webcast of the presentations. More information can be found here at the event's web page.

Webcast and conference call for analysts, investors and media

Kemira will arrange a webcast for analysts, investors and the media on Wednesday, July 17, 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 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: https://palvelu.flik.fi/teleconference/?id=50047138.

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 Half-Year Financial Report 2024

Consolidated income statement

EUR million	4-6/2024	4-6/2023	1-6/2024	1-6/2023	1-12/2023

Revenue	733.4	840.1	1,496.7	1,746.1	3,383.7
Other operating income	0.5	2.1	0.9	4.5	8.6
Operating expenses	-596.9	-694.8	-1,206.4	-1,418.8	-2,852.3
Share of profit or loss of associates	0.1	0.0	-0.1	-0.3	0.1
EBITDA	137.1	147.4	291.2	331.5	540.0
Depreciation, amortization and impairments	-46.4	-50.1	-91.3	-100.9	-203.6
Operating profit (EBIT)	90.7	97.2	199.9	230.6	336.4
Finance costs, net	-6.6	-12.1	-14.9	-22.9	-44.4
Profit before taxes	84.1	85.1	185.0	207.8	292.0
Income taxes	-18.7	-17.4	-40.5	-44.6	-80.7
Net profit for the period	65.4	67.7	144.4	163.2	211.3

Net profit attributable to
Equity owners of the parent company	62.0	64.7	137.8	157.6	199.1
Non-controlling interests	3.4	3.0	6.6	5.5	12.2
Net profit for the period	65.4	67.7	144.4	163.2	211.3

Earnings per share, basic, EUR	0.40	0.42	0.90	1.03	1.30
Earnings per share, diluted, EUR	0.40	0.42	0.89	1.02	1.28

Consolidated statement of comprehensive income

EUR million	4-6/2024	4-6/2023	1-6/2024	1-6/2023	1-12/2023

Net profit for the period	65.4	67.7	144.4	163.2	211.3

Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	0.6	0.2	3.8	-11.2	-16.9
Cash flow hedges	0.8	-5.5	-10.6	-51.2	-54.1
Items that will not be reclassified subsequently to profit or loss
Other shares	49.2	13.0	11.9	-56.7	-61.3
Remeasurements of defined benefit plans	—	—	—	—	18.9
Other comprehensive income for the period, net of tax	50.6	7.8	5.1	-119.0	-113.4

Total comprehensive income for the period	116.0	75.5	149.5	44.1	97.9

Total comprehensive income attributable to
Equity owners of the parent company	112.6	71.8	142.9	37.8	84.9
Non-controlling interests	3.4	3.7	6.6	6.3	13.0
Total comprehensive income for the period	116.0	75.5	149.5	44.1	97.9

Consolidated balance sheet

EUR million	6/30/2024	6/30/2023	12/31/2023
ASSETS

Non-current assets
Goodwill	484.7	509.7	480.9
Other intangible assets	45.2	56.4	51.1
Property, plant and equipment	931.0	1,064.9	939.6
Right-of-use assets	130.0	145.6	123.0
Investments in associates	4.6	4.5	4.8
Other shares	320.2	311.1	305.4
Deferred tax assets	30.5	25.8	31.8
Other financial assets	7.1	13.5	7.9
Receivables of defined benefit plans	95.7	79.7	106.3
Total non-current assets	2,049.1	2,211.1	2,050.9

Current assets
Inventories	299.9	383.9	281.8
Loan receivables	46.5	0.3	0.3
Trade receivables and other receivables	434.6	494.4	468.2
Current income tax assets	28.4	21.3	29.9
Cash and cash equivalents	384.6	299.5	402.5
Total current assets	1,194.0	1,199.5	1,182.7

Assets classified as held-for-sale	8.2	—	255.6

Total assets	3,251.3	3,410.5	3,489.3

EUR million	6/30/2024	6/30/2023	12/31/2023
EQUITY AND LIABILITIES

Equity
Equity attributable to equity owners of the parent company	1,698.9	1,614.7	1,664.8
Non-controlling interests	21.4	20.7	19.4
Total equity	1,720.3	1,635.4	1,684.2

Non-current liabilities
Interest-bearing liabilities	494.1	639.6	615.7
Other financial liabilities	10.9	9.8	10.8
Deferred tax liabilities	82.9	91.0	81.3
Liabilities of defined benefit plans	69.6	64.6	69.8
Provisions	32.7	37.8	37.8
Total non-current liabilities	690.3	842.8	815.4

Current liabilities
Interest-bearing liabilities	259.0	325.5	322.1
Trade payables and other liabilities	530.9	552.6	489.4
Current income tax liabilities	24.9	40.0	56.6
Provisions	15.6	14.3	16.9
Total current liabilities	830.3	932.3	884.9

Total liabilities	1,520.6	1,775.1	1,700.3

Liabilities classified as held-for-sale	10.4	—	104.8

Total equity and liabilities	3,251.3	3,410.5	3,489.3

Consolidated cash flow statement

EUR million	4-6/2024	4-6/2023	1-6/2024	1-6/2023	1-12/2023

Cash flow from operating activities
Net profit for the period	65.4	67.7	144.4	163.2	211.3
Total adjustments	71.0	74.7	152.3	173.2	429.4
Cash flow before change in net working capital	136.4	142.4	296.8	336.3	640.7
Change in net working capital	4.0	25.0	-5.3	-25.8	14.9
Cash generated from operations before financing items and taxes	140.5	167.5	291.5	310.6	655.6
Finance expenses, net and dividends received	-3.9	-11.3	-19.1	-8.9	-18.8
Income taxes paid	-27.2	-13.2	-65.3	-62.0	-90.8
Net cash generated from operating activities	109.4	142.9	207.1	239.6	546.0
Cash flow from investing activities
Purchases of subsidiaries and business acquisitions, net of cash acquired	—	—	—	-1.9	-1.9
Other capital expenditure	-35.0	-48.8	-61.2	-77.9	-204.9
Proceeds from sale of subsidiaries, business and assets	-4.0	9.0	149.6	9.5	9.7
Decrease (+) / increase (-) in loan receivables	-0.1	0.2	-46.3	0.4	0.4
Net cash used in investing activities	-39.0	-39.6	42.2	-69.8	-196.7

EUR million	4-6/2024	4-6/2023	1-6/2024	1-6/2023	1-12/2023

Cash flow from financing activities
Proceeds from non-current interest-bearing liabilities	—	—	—	0.1	0.2
Repayments of non-current liabilities	-200.0	—	-200.0	—	—
Short-term financing, net increase (+) / decrease (-)	1.7	-18.9	4.3	-51.4	-50.7
Repayments of lease liabilities	-7.9	-9.1	-16.6	-18.3	-37.3
Dividends paid	-52.4	-48.6	-56.9	-48.6	-103.5
Net cash used in financing activities	-258.5	-76.6	-269.2	-118.2	-191.3

Net decrease (-) / increase (+) in cash and cash equivalents	-188.2	26.7	-20.0	51.6	158.0

Cash and cash equivalents at end of period	384.6	299.5	384.6	299.5	402.5
Exchange gains (+) / losses (-) on cash and cash equivalents	0.6	-0.5	2.1	-2.7	-6.1
Cash and cash equivalents at beginning of period	572.2	273.2	402.5	250.6	250.6
Net decrease (-) / increase (+) in cash and cash equivalents	-188.2	26.7	-20.0	51.6	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	—	—	—	—	—	—	137.8	137.8	6.6	144.4
Other comprehensive income, net of tax	—	—	1.3	—	3.8	—	—	5.1	0.0	5.1
Total comprehensive income	—	—	1.3	—	3.8	—	137.8	142.9	6.6	149.5
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
Treasury shares issued to the Board of Directors	—	—	—	—	—	0.1	—	0.1	—	0.1
Returned shares ⁽²	—	—	—	—	—	-1.9	—	-1.9	—	-1.9
Share-based payments	—	—	—	—	—	—	-5.6	-5.6	—	-5.6
Other items	—	—	—	—	—	—	0.1	0.1	—	0.1
Total transactions with owners	—	—	—	—	—	1.4	-110.3	-108.9	-4.5	-113.4
Equity on June 30, 2024	221.8	257.9	164.7	196.3	-50.0	-10.2	918.4	1,698.9	21.4	1,720.3

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 1,359,348 treasury shares on June 30, 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 1.9 million.

The share premium is a reserve accumulated through subscriptions and entitlements through 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	—	—	—	—	—	—	157.6	157.6	5.5	163.2
Other comprehensive income, net of tax	—	—	-107.9	—	-12.0	—	0.1	-119.8	0.8	-119.0
Total comprehensive income	—	—	-107.9	—	-12.0	—	157.7	37.8	6.3	44.1
Transactions with owners
Dividends paid	—	—	—	—	—	—	-95.2 3)	-95.2	-0.3	-95.5
Treasury shares issued to the target group of a share-based incentive plan	—	—	—	—	—	1.7	—	1.7	—	1.7
Treasury shares issued to the Board of Directors	—	—	—	—	—	0.1	—	0.1	—	0.1
Share-based payments	—	—	—	—	—	—	0.2	0.2	—	0.2
Transfers in equity	—	—	0.1	—	—	—	-0.1	0.0	—	0.0
Other items	—	—	—	—	—	—	0.2	0.2	—	0.2
Total transactions with owners	—	—	0.1	—	—	1.8	-94.9	-93.0	-0.3	-93.3
Equity on June 30, 2023	221.8	257.9	170.9	196.3	-48.0	-11.6	827.4	1,614.7	20.7	1,635.4

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	2024	2023	2023	2023	2023	2024	2023	2023
	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

Income statement and profitability
Revenue, EUR million	733.4	763.3	808.8	828.7	840.1	906.0	1,496.7	1,746.1	3,383.7
Revenue, O&G divestment adjusted, EUR million	733.4	718.8	690.2	694.3	709.1	795.6	1,452.2	1,504.6	2,889.0
Operative EBITDA, EUR million	140.5	162.5	162.7	160.3	151.0	192.6	303.0	343.7	666.7
Operative EBITDA, %	19.2	21.3	20.1	19.3	18.0	21.3	20.2	19.7	19.7
Operative EBITDA, O&G divestment adjusted, EUR million	140.5	159.2	149.3	143.8	133.3	169.4	299.7	302.8	595.9
Operative EBITDA, O&G divestment adjusted, %	19.2	22.2	21.6	20.7	18.8	21.3	20.6	20.1	20.6
EBITDA, EUR million	137.1	154.1	51.3	157.2	147.4	184.1	291.2	331.5	540.0
EBITDA, %	18.7	20.2	6.3	19.0	17.5	20.3	19.5	19.0	16.0
Items affecting comparability in EBITDA, EUR million	-3.3	-8.4	-111.4	-3.1	-3.7	-8.5	-11.8	-12.1	-126.7
Operative EBIT, EUR million	94.0	117.6	112.6	107.6	100.9	141.9	211.6	242.8	463.0
Operative EBIT, %	12.8	15.4	13.9	13.0	12.0	15.7	14.1	13.9	13.7
Operative EBIT, O&G divestment adjusted, EUR million	94.0	114.4	103.7	97.8	89.6	124.4	208.4	214.0	415.5
Operative EBIT, O&G divestment adjusted, %	12.8	15.9	15.0	14.1	12.6	15.6	14.4	14.2	14.4
Operating profit (EBIT), EUR million	90.7	109.2	1.3	104.5	97.2	133.4	199.9	230.6	336.4
Operating profit (EBIT), %	12.4	14.3	0.2	12.6	11.6	14.7	13.4	13.2	9.9
Items affecting comparability in EBIT, EUR million	-3.3	-8.4	-111.4	-3.1	-3.7	-8.5	-11.8	-12.1	-126.7
Amortization and impairments of Intangible assets	-5.0	-3.6	-4.4	-5.0	-4.7	-4.8	-8.7	-9.6	-19.0
Of which purchase price allocation (PPA) related	-2.2	-0.7	-1.4	-1.8	-1.8	-1.9	-2.9	-3.7	-6.9
Depreciations and impairments of Property, plant and equipment	-33.1	-32.9	-36.1	-37.9	-35.7	-36.7	-65.9	-72.4	-146.5
Depreciations of right-of-use assets	-8.3	-8.4	-9.5	-9.8	-9.7	-9.2	-16.7	-18.9	-38.1

	2024	2024	2023	2023	2023	2023	2024	2023	2023
	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

Return on investment (ROI), %	13.5	15.9	0.3	14.8	13.6	18.9	14.8	16.1	11.6
Capital employed, EUR million 1)	2,032.1	2,092.9	2,155.5	2,188.9	2,221.5	2,244.5	2,032.1	2,221.5	2,155.5
Operative ROCE, %	21.3	21.0	21.5	21.6	21.0	19.4	21.3	21.0	21.5
Operative ROCE, %, O&G divestment adjusted	21.6	21.6	22.4	23.0	22.4	20.8	21.6	22.4	22.4
ROCE, %	15.0	14.9	15.6	21.3	20.1	18.7	15.0	20.1	15.6
Cash flow
Net cash generated from operating activities, EUR million	109.4	97.7	133.3	173.1	142.9	96.7	207.1	239.6	546.0
Capital expenditure, EUR million	35.0	26.2	72.7	54.4	48.8	31.0	61.2	79.7	206.8
Capital expenditure excl. acquisitions, EUR million	35.0	26.2	72.7	54.4	48.8	29.1	61.2	77.9	204.9
Capital expenditure excl. acquisitions / revenue, %	4.8	3.4	9.0	6.6	5.8	3.2	4.1	4.5	6.1
Cash flow after investing activities, EUR million	70.4	178.9	60.5	119.0	103.3	66.5	249.2	169.8	349.3
Balance sheet and solvency
Equity ratio, %	53.0	47.0	48.3	48.3	48.0	45.5	53.0	48.0	48.3
Gearing, %	21.4	23.4	31.8	33.8	40.7	45.4	21.4	40.7	31.8
Interest-bearing net liabilities, EUR million	368.4	375.6	535.2	566.5	665.5	708.2	368.4	665.5	535.2
Personnel
Personnel at end of period	4,783	4,690	4,915	4,919	4,989	4,944	4,783	4,989	4,915
Personnel (average)	4,748	4,767	4,909	4,964	4,970	4,940	4,757	4,955	4,946
Key exchange rates at end of period
USD	1.071	1.081	1.105	1.059	1.087	1.088	1.071	1.087	1.105
CAD	1.467	1.467	1.464	1.423	1.442	1.474	1.467	1.442	1.464
SEK	11.360	11.525	11.096	11.533	11.806	11.281	11.360	11.806	11.096
CNY	7.775	7.814	7.851	7.735	7.898	7.476	7.775	7.898	7.851
BRL	5.892	5.403	5.362	5.307	5.279	5.516	5.892	5.279	5.362

	2024	2024	2023	2023	2023	2023	2024	2023	2023
	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

Per share figures, EUR
Earnings per share (EPS), basic 2)	0.40	0.49	-0.20	0.47	0.42	0.61	0.90	1.03	1.30
Earnings per share (EPS), diluted 2)	0.40	0.49	-0.20	0.46	0.42	0.60	0.89	1.02	1.28
Net cash generated from operating activities per share 2)	0.71	0.64	0.87	1.13	0.93	0.63	1.35	1.56	3.56
Equity per share 2)	11.03	10.29	10.84	10.81	10.51	10.05	11.03	10.51	10.84

Number of shares (1,000,000)
Average number of shares, basic 2)	154.0	153.7	153.6	153.6	153.6	153.4	153.9	153.5	153.6
Average number of shares, diluted 2)	155.2	155.3	155.1	155.1	155.1	155.0	155.2	155.0	155.1
Number of shares at end of period, basic 2)	154.0	154.0	153.6	153.6	153.6	153.6	154.0	153.6	153.6
Number of shares at end of period, diluted 2)	155.2	155.2	155.3	155.0	155.1	155.1	155.2	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	2024	2023	2023	2023	2023	2024	2023	2023
EUR million	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12
ITEMS AFFECTING COMPARABILITY IN EBITDA AND IN EBIT
Operative EBITDA, O&G divestment adjusted	140.5	159.2	149.3	143.8	133.3	169.4	299.7	302.8	595.9
O&G divestment adjustment	0.0	3.3	13.4	16.5	17.7	23.2	3.3	40.9	70.8
Operative EBITDA	140.5	162.5	162.7	160.3	151.0	192.6	303.0	343.7	666.7
Restructuring and streamlining programs	-1.0	-0.2	0.1	0.0	-1.0	0.0	-1.3	-1.0	-0.9
Transaction and integration expenses in acquisition	-0.1	-0.1	-0.1	0.0	0.0	-0.1	-0.2	-0.1	-0.2
Divestment of businesses and other disposals	-2.2	-7.9	-111.3	-3.1	-2.6	-8.9	-10.1	-11.5	-125.9
Other items	-0.1	-0.1	0.0	0.0	0.0	0.4	-0.2	0.5	0.4
Total items affecting comparability	-3.3	-8.4	-111.4	-3.1	-3.7	-8.5	-11.8	-12.1	-126.7
EBITDA	137.1	154.1	51.3	157.2	147.4	184.1	291.2	331.5	540.0
Operative EBIT, O&G divestment adjusted	94.0	114.4	103.7	97.8	89.6	124.4	208.4	214.0	415.5
O&G divestment adjustment	0.0	3.2	8.9	9.9	11.3	17.4	3.2	28.8	47.6
Operative EBIT	94.0	117.6	112.6	107.6	100.9	141.9	211.6	242.8	463.0
Total items affecting comparability in EBITDA	-3.3	-8.4	-111.4	-3.1	-3.7	-8.5	-11.8	-12.1	-126.7
Items affecting comparability in depreciation, amortization and impairments	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Operating profit (EBIT)	90.7	109.2	1.3	104.5	97.2	133.4	199.9	230.6	336.4
ROCE AND OPERATIVE ROCE
Operative EBIT	94.0	117.6	112.6	107.6	100.9	141.9	211.6	242.8	463.0
Operating profit (EBIT)	90.7	109.2	1.3	104.5	97.2	133.4	199.9	230.6	336.4
Capital employed ¹⁾	2,032.1	2,092.9	2,155.5	2,188.9	2,221.5	2,244.5	2,032.1	2,221.5	2,155.5
Operative ROCE, %	21.3	21.0	21.5	21.6	21.0	19.4	21.3	21.0	21.5
Operative ROCE, %, O&G divestment adjusted	21.6	21.6	22.4	23.0	22.4	20.8	21.6	22.4	22.4
ROCE, %	15.0	14.9	15.6	21.3	20.1	18.7	15.0	20.1	15.6

	2024	2024	2023	2023	2023	2023	2024	2023	2023
EUR million	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

NET WORKING CAPITAL
Inventories	299.9	292.6	281.8	347.5	383.9	421.5	299.9	383.9	281.8
Trade receivables and other receivables	434.6	449.4	468.2	496.8	494.4	517.6	434.6	494.4	468.2
Excluding financing items in other receivables	-6.7	-12.1	-18.6	-10.0	-21.9	-23.7	-6.7	-21.9	-18.6
Trade payables and other liabilities	530.9	586.8	489.4	569.4	552.6	633.2	530.9	552.6	489.4
Excluding dividend liability and financing items in other liabilities	-86.9	-143.3	-37.0	-83.1	-78.2	-127.7	-86.9	-78.2	-37.0
Net working capital	283.8	286.4	278.9	347.9	382.0	409.9	283.8	382.0	278.9

INTEREST-BEARING NET LIABILITIES
Non-current interest-bearing liabilities	494.1	491.7	615.7	641.8	639.6	832.6	494.1	639.6	615.7
Current interest-bearing liabilities	258.9	456.1	322.1	327.8	325.5	148.8	258.9	325.5	322.1
Interest-bearing liabilities	753.0	947.8	937.8	969.6	965.1	981.4	753.0	965.1	937.8
Cash and cash equivalents	384.6	572.2	402.5	403.1	299.5	273.2	384.6	299.5	402.5
Interest-bearing net liabilities	368.4	375.6	535.2	566.5	665.5	708.2	368.4	665.5	535.2

1) 12-month rolling average

Notes of Half-Year Financial Report 2024

1. Quarterly segment information

	2024	2024	2023	2023	2023	2023	2024	2023	2023
EUR million	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

Revenue, O&G divestment adjusted
Pulp & Paper	412.4	422.9	418.8	403.6	421.2	504.6	835.3	925.8	1,748.2
Industry & Water, O&G divestment adjusted	321.0	295.9	271.4	290.7	287.9	291.0	616.9	578.8	1,140.9
Total, O&G divestment adjusted	733.4	718.8	690.2	694.3	709.1	795.6	1,452.2	1,504.6	2,889.0
Items affecting comparability in Revenue
Pulp & Paper	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Industry & Water, O&G divestment adjustment	0.0	44.5	118.7	134.4	131.0	110.5	44.5	241.5	494.6
Total	0.0	44.5	118.7	134.4	131.0	110.5	44.5	241.5	494.6
Revenue
Pulp & Paper	412.4	422.9	418.8	403.6	421.2	504.6	835.3	925.8	1,748.2
Industry & Water	321.0	340.5	390.0	425.1	418.9	401.5	661.5	820.3	1,635.5
Total	733.4	763.3	808.8	828.7	840.1	906.0	1,496.7	1,746.1	3,383.7

Operative EBITDA, O&G divestment adjusted
Pulp & Paper	67.9	88.2	87.5	68.9	65.2	109.4	156.1	174.6	330.9
Industry & Water, O&G divestment adjusted	72.6	71.0	61.8	75.0	68.1	60.1	143.6	128.2	265.0
Total, O&G divestment adjusted	140.5	159.2	149.3	143.8	133.3	169.4	299.7	302.8	595.9
Items affecting comparability in Operative EBITDA
Pulp & Paper	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Industry & Water, O&G divestment adjustment	0.0	3.3	13.4	16.5	17.7	23.2	3.3	40.9	70.8
Total	0.0	3.3	13.4	16.5	17.7	23.2	3.3	40.9	70.8

	2024	2024	2023	2023	2023	2023	2024	2023	2023
EUR million	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

Operative EBITDA
Pulp & Paper	67.9	88.2	87.5	68.9	65.2	109.4	156.1	174.6	330.9
Industry & Water	72.6	74.3	75.2	91.5	85.8	83.3	146.9	169.1	335.8
Total	140.5	162.5	162.7	160.3	151.0	192.6	303.0	343.7	666.7

Items affecting comparability in EBITDA
Pulp & Paper	-0.9	-0.1	-13.0	-0.1	-1.3	-8.5	-1.1	-9.8	-22.9
Industry & Water	-2.4	-8.3	-98.4	-3.0	-2.4	0.0	-10.7	-2.4	-103.7
Total	-3.3	-8.4	-111.4	-3.1	-3.7	-8.5	-11.8	-12.1	-126.7

EBITDA
Pulp & Paper	67.0	88.0	74.5	68.7	63.9	100.9	155.0	164.8	308.0
Industry & Water	70.1	66.0	-23.2	88.5	83.5	83.3	136.2	166.7	232.0
Total	137.1	154.1	51.3	157.2	147.4	184.1	291.2	331.5	540.0

Operative EBIT, O&G divestment adjusted
Pulp & Paper	38.0	59.8	58.6	39.8	37.6	80.4	97.8	117.9	216.3
Industry & Water, O&G divestment adjusted	56.0	54.6	45.1	58.0	52.0	44.1	110.7	96.1	199.2
Total, O&G divestment adjusted	94.0	114.4	103.7	97.8	89.6	124.4	208.4	214.0	415.5

Items affecting comparability in Operative EBIT
Pulp & Paper	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Industry & Water, O&G divestment adjustment	0.0	3.2	8.9	9.9	11.3	17.4	3.2	28.8	47.6
Total	0.0	3.2	8.9	9.9	11.3	17.4	3.2	28.8	47.6

Operative EBIT
Pulp & Paper	38.0	59.8	58.6	39.8	37.6	80.4	97.8	117.9	216.3
Industry & Water	56.0	57.8	54.1	67.8	63.3	61.5	113.9	124.8	246.7
Total	94.0	117.6	112.6	107.6	100.9	141.9	211.6	242.8	463.0

	2024	2024	2023	2023	2023	2023	2024	2023	2023
EUR million	4-6	1-3	10-12	7-9	4-6	1-3	1-6	1-6	1-12

Items affecting comparability in EBIT
Pulp & Paper	-0.9	-0.1	-13.0	-0.1	-1.3	-8.5	-1.1	-9.8	-22.9
Industry & Water	-2.4	-8.3	-98.4	-3.0	-2.4	0.0	-10.7	-2.4	-103.7
Total	-3.3	-8.4	-111.4	-3.1	-3.7	-8.5	-11.8	-12.1	-126.7

Operating profit (EBIT)
Pulp & Paper	37.1	59.6	45.5	39.7	36.3	71.9	96.7	108.1	193.4
Industry & Water	53.6	49.5	-44.3	64.8	61.0	61.5	103.2	122.5	143.0
Total	90.7	109.2	1.3	104.5	97.2	133.4	199.9	230.6	336.4

2. Changes in property, plant, and equipment

3. Changes in goodwill and other intangible assets

EUR million	1-6/2024	1-6/2023	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	57.6	72.8	194.0
Decreases	-0.1	—	-0.1
Depreciation and impairments	-65.9	-72.6	-146.5
Transferred to assets classified as held-for-sale	-0.8	—	-172.5
Exchange rate differences and other changes	0.5	-15.4	-15.4
Net book value at end of period	931.0	1,064.9	939.6

EUR million	1-6/2024	1-6/2023	1-12/2023

Net book value at beginning of period	532.1	571.7	571.7
Purchases of subsidiaries and asset acquisitions	—	3.5	3.5
Increases	3.6	5.1	10.9
Decreases	-0.9	-0.3	-0.3
Amortization and impairments	-8.7	-9.5	-19.0
Transferred to assets classified as held-for-sale	—	—	-28.2
Exchange rate differences and other changes	3.9	-4.6	-6.6
Net book value at end of period	529.9	566.1	532.1

4. Changes in right-of-use assets

EUR million	1-6/2024	1-6/2023	1-12/2023

Net book value at beginning of period	123.0	146.0	146.0
Increases	21.3	21.0	37.1
Depreciation and impairments	-16.7	-18.9	-38.1
Transferred to assets classified as held-for-sale	—	—	-17.8
Exchange rate differences and other changes	2.5	-2.5	-4.2
Net book value at end of period	130.0	145.6	123.0

5. Derivative instruments

EUR million	6/30/2024		12/31/2023

Currency derivatives	Nominal value	Fair value	Nominal value	Fair value
Forward contracts	602.6	-0.4	789.6	4.2
of which cash flow hedge	115.0	-0.7	265.8	2.3

Commodity derivatives	GWh	Fair value	GWh	Fair value
Commodity forward contracts 1)	465.5	-0.2	637.8	7.7
of which cash flow hedge	465.5	-0.2	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	6/30/2024			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	—	—	320.2	320.2	—	—	305.4	305.4
Other investments	—	6.3	—	6.3	—	6.3	—	6.3
Commodity derivatives, hedge accounting	—	0.9	—	0.9	—	1.6	—	1.6
Current assets
Currency derivatives	—	2.9	—	2.9	—	3.6	—	3.6
Currency derivatives, hedge accounting	—	0.5	—	0.5	—	4.8	—	4.8
Commodity derivatives, hedge accounting	—	2.5	—	2.5	—	9.5	—	9.5
Loan receivables	—	46.5	—	46.5	—	0.3	—	0.3
Trade receivables	—	369.3	—	369.3	—	386.2	—	386.2
Cash and cash equivalents	—	384.6	—	384.6	—	402.5	—	402.5
Assets classified as held-for sale 1)	—	—	—	—	—	57.1	—	57.1
Total	—	813.5		320.2 1,133.8	—	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	6/30/2024	12/31/2023

Carrying value at beginning of period	305.4	383.3
Impact on other comprehensive income	14.9	-76.7
Decreases	—	-0.3
Reclassifications	—	-1.0
Carrying value at end of period	320.2	305.4

The fair value of Pohjolan Voima and Teollisuuden Voima shares increased in Q2 2024 mainly due to higher long-term forecasts of 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	6/30/2024 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	—	386.2	—	386.2	—	519.3	—	519.3
Current portion of interest bearing liabilities	—	132.4	—	132.4	—	200.2	—	200.2
Other liabilities	—	8.8	—	8.8	—	8.7	—	8.7
Current portion of other liabilities	—	6.4	—	6.4	—	6.3	—	6.3
Lease liabilities	—	102.5	—	102.5	—	93.9	—	93.9
Current portion of lease liabilities	—	26.7	—	26.7	—	27.6	—	27.6
Commodity derivatives, hedge accounting	—	2.1	—	2.1	—	2.1	—	2.1
Current liabilities
Interest-bearing loans	—	94.0	—	94.0	—	88.7	—	88.7
Other liabilities	—	31.6	—	31.6	—	26.2	—	26.2
Currency derivatives	—	2.6	—	2.6	—	4.1	—	4.1
Currency derivatives, hedge accounting	—	1.2	—	1.2	—	0.1	—	0.1
Commodity derivatives, hedge accounting	—	1.4	—	1.4	—	1.4	—	1.4
Trade payables	—	237.2	—	237.2	—	226.7	—	226.7
Liabilities classified as held for-sale 1)	—	10.4	—	10.4	—	45.6	—	45.6
Total		— 1,043.4		— 1,043.4		— 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 111 million, including related expenses, of which EUR 10 million was recognized during H1 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	6/30/2024	6/30/2023	12/31/2023

Goodwill	—	—	0.0
Intangible assets	—	—	1.6
Property, plant and equipment	4.2	—	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	8.2	—	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	6/30/2024	6/30/2023	12/31/2023

Liabilities related to right-of-use assets	10.4	—	24.1
Deferred tax liabilities	—	—	32.1
Trade payables and other liabilities	—	—	44.0
Current income tax liabilities	—	—	4.6
Total	10.4	—	104.8

10. Contingent liabilities

EUR million	6/30/2024	6/30/2023	12/31/2023

Guarantees
On behalf of own commitments	113.1	110.4	109.5
On behalf of associates	11.4	11.7	11.7
On behalf of others	2.8	2.5	2.7
Other obligations
On behalf of own commitments	0.7	0.6	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 June 30, 2024 were about EUR 11 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

On July 1, 2024 Kemira announced the acquisition of Norit's UK reactivation operations. This acquisition marks the first step for Kemira in expanding to the activated carbon market for micropollutants removal. The deal is expected to close in Q3 2024.

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Kemira Oyj

3221_ir_2024-07-17_4da0506e-24c0-46d3-b1ca-b204d29a92ed.pdf

January-June 2024 Half-year Financial Report

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