74370031Y7RK5H88CQ48-2024-12-31-en

KEMIRA 2024 | FINANCIAL STATEMENTS | 2

Financial Statements 2024

Table of contents


BOARD OF DIRECTORS' REVIEW 2024 ........................................			3	3.	Capital expenditures, acquisitions and			6.	Group structure ..............................................................	160
	Sustainability Statement ........................................................		24		divestments .....................................................................	124		6.1.	Related parties ................................................................	160
		General disclosure ..........................................................	24	3.1.	Goodwill ............................................................................	124		6.2.	The Group's subsidiaries and investments in
		Environmental information ...........................................	40	3.2.	Other intangible assets .................................................	126			associates ........................................................................	162
		Social information ..........................................................	77	3.3.	Property, plant and equipment ...................................	128		7.	Off-balance sheet items ...............................................	164
		Governance information ...............................................	92	3.4.	Leases ...............................................................................	130		7.1.	Commitments and contingent liabilities ...................	165
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) *) ..............			101	3.5.	Other shares ....................................................................	132		7.2.	Events after the balance sheet date ..........................	165
	Consolidated Income Statement ...........................................		101	3.6.	Business combinations .................................................	133
	Consolidated Statement of Comprehensive			3.7.	Assets classified as held-for-sale ...............................	134	KEMIRA OYJ'S FINANCIAL STATEMENTS (FAS) *) ...................			166
	Income .........................................................................................		101	4.	Working capital and other balance sheet items .....	136	BOARD OF DIRECTORS' PROPOSAL FOR
	Consolidated Balance Sheet ..................................................		102	4.1.	Inventories ........................................................................	136	PROFIT DISTRIBUTION AND SIGNATURES *) ............................			185
	Consolidated Statement of Cash Flow ................................		103	4.2.	Trade receivables and other current receivables ...	136	AUDITOR'S REPORT ........................................................................			186
	Consolidated Statement of Changes in Equity ..................		104	4.3.	Trade payables and other current liabilities ............	137	ASSURANCE REPORT .....................................................................			190
	Notes to the Consolidated Financial Statements .............		106	4.4.	Deferred tax liabilities and assets ..............................	138	ESEF FINANCIAL STATEMENT REPORT .....................................			193
	1.	The Group's material accounting policies for the	106	4.5.	Defined benefit pension plans and employee	141	OTHER FINANCIAL INFORMATION ..............................................
		Consolidated Financial Statements ..........................			benefits .............................................................................	141		Group key figures ......................................................................
	2.	Financial performance ..................................................	110	4.6.	Provisions .........................................................................	145		Definition of key figures ..........................................................
	2.1.	Segment information .....................................................	110	5.	Capital structure and financial risks .........................	146		Reconciliation to IFRS figures ................................................
	2.2.	Other operating income and expenses ......................	115	5.1.	Capital structure .............................................................	146		Quarterly earnings performance ...........................................
	2.3.	Share-based payments .................................................	117	5.2.	Shareholders' equity ......................................................	148	SHARES AND SHAREHOLDERS ....................................................
	2.4.	Depreciation, amortization and impairments ..........	119	5.3.	Interest-bearing liabilities ............................................	149	INFORMATION FOR INVESTORS ..................................................
	2.5.	Finance income and expenses .....................................	120	5.4.	Financial assets and liabilities by measurement	150
	2.6.	Income taxes ....................................................................	121		categories .........................................................................	150
	2.7.	Earnings per share ..........................................................	123	5.5.	Management of financial risks ....................................	154
	2.8.	Other comprehensive income ......................................	123	5.6.	Derivative instruments ..................................................	158

*) Part of the audited Financial Statements 2024

This is a translation of the Finnish original Financial Statements and Board of Directors' Review 2024.

KEMIRA 2024 | FINANCIAL STATEMENTS | 3

BOARD OF DIRECTORS' REVIEW 2024

Board of Directors’ Review 2024

In 2024 , Kemira Group’s revenue decreased by 13% to EUR 2,948.1 million (3,383.7) due to the

divestment of Oil & Gas and. Revenue in local currencies, excluding acquisitions and

divestments, decreased by 1% following lower revenue in the Pulp & Paper segment. Sales

volumes increased in both segments. Sales prices declined, particularly in the Pulp & Paper

segment, as sales prices for energy-intensive pulp and bleaching chemicals declined in H1

2024 from an elevated comparison period in H1 2023.

Operative EBITDA decreased by 12%, to EUR 585.4 million (666.7), mainly due to the

divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBITDA decreased to

EUR 582.1 million (595.9). The Oil & Gas divestment adjusted operative EBITDA in Industry &

Water increased, while it declined in the Pulp & Paper segment due to lower sales prices. The

operative EBITDA margin increased slightly to 19.9% (19.7%). The Oil & Gas adjusted operative

EBITDA margin was strong, at 20.0% (20.6%), with solid margin performance in both

segments.

EBITDA increased by 2% to EUR 550.7 million (540.0). The difference between it and operative

EBITDA is explained by items affecting comparability, which were mainly related to Kemira's

new organization and the expected underutilization of a single-asset energy company in Pori,

Finland, majority owned by Kemira via Pohjolan Voima. Items affecting comparability in the

comparison period were mainly related to the loss from the divestment of the Oil & Gas

business.

Operative EBIT decreased by 14% to EUR 398.7 million (463.0) compared to the previous year,

mainly due to the divestment of Oil & Gas. Oil & Gas divestment adjusted operative EBIT

decreased by 5% to EUR 395.5 million (415.5). EBIT increased by 8% to EUR 363.2 million

(336.4).

Cash flow from operating activities was solid, at EUR 484.6 million (546.0).

EPS (diluted) increased by 25%, to an all-time high EUR 1.61 (1.28). The comparison period was

impacted by the loss from the divestment of the Oil & Gas business.

The Board of Directors proposes to the Annual General Meeting 2025 a cash dividend of EUR

0.74 per share (0.68), totaling EUR 114 million (104). It is proposed that the dividend be paid in

two installments, in April and in November.

The Oil & Gas divestment

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 2024 figures include around EUR 45 million of revenue and around EUR 3 million of

operative EBITDA from Oil & Gas. Kemira has also presented the 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.

KEMIRA 2024 | FINANCIAL STATEMENTS | 4

BOARD OF DIRECTORS' REVIEW 2024

KEY FIGURES AND RATIOS


EUR million	2024	2023	2022	EUR million	2024	2023	2022
Revenue	2,948.1	3,383.7	3,569.6	Capital employed*	1,920.1	2,155.5	2,238.0
Revenue, O&G divestment adjusted	2,903.5	2,889.0	3,141.1	Capital employed*, O&G divestment adjusted	1,920.1	1,856.0
Operative EBITDA	585.4	666.7	571.6	Operative ROCE*, %	20.8	21.5	16.2
Operative EBITDA, O&G divestment adjusted	582.1	595.9	518.3	Operative ROCE*, %, O&G divestment adjusted	20.6	22.4
Operative EBITDA, %	19.9	19.7	16.0	ROCE*, %	18.9	15.6	15.5
Operative EBITDA %, O&G divestment adjusted	20.0	20.6	16.5	Cash flow from operating activities	484.6	546.0	400.3
EBITDA	550.7	540.0	558.8	Capital expenditure excl. acquisition	167.3	204.9	197.9
EBITDA, %	18.7	16.0	15.7	Capital expenditure, excl. acquisitions, O&G divestment adjusted	167.3	187.7	176.2
Operative EBIT	398.7	463.0	361.6	Capital expenditure	170.5	206.8	197.9
Operative EBIT, O&G divestment adjusted	395.5	415.5	331.7	Cash flow after investing activities	411.8	349.3	222.3
Operative EBIT, %	13.5	13.7	10.1	Equity ratio, % at period-end	53	48	46
Operative EBIT %, O&G divestment adjusted	13.6	14.4	10.6	Equity per share, EUR	11.59	10.84	10.89
EBIT	363.2	336.4	347.6	Gearing, % at period-end	16	32	46
EBIT, %	12.3	9.9	9.7	Personnel (average)	4,746	4,946	4,936
Net profit for the period	262.7	211.3	239.7	Wages and salaries	335.0	343.5	339.2
Earnings per share, diluted, EUR	1.61	1.28	1.50

*12-month rolling average (ROCE, % based on the EBIT).

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

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

by 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 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. 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.

In addition to the above key figures and ratios, other key figures which are describing the Group's financial

performance are presented in the Other financial information section under Group key figures.

KEMIRA 2024 | FINANCIAL STATEMENTS | 5

BOARD OF DIRECTORS' REVIEW 2024

Financial performance in 2024

Revenue decreased by 13% due to the divestment of Oil & Gas and and revenue in local

currencies, excluding acquisitions and divestments, decreased by 1% following lower revenue

in the Pulp & Paper segment. Sales volumes increased in both segments. Sales prices

declined, particularly in the Pulp & Paper segment, as sales prices for energy-intensive pulp

and bleaching chemicals declined in H1 2024 from an elevated comparison period in H1 2023.


Revenue	2024	2023	∆%	Organic growth*, %	Currency impact, %	Acq. & div. impact, %
Revenue	EUR, million	EUR, million	∆%	Organic growth*, %	Currency impact, %	Acq. & div. impact, %
Pulp & Paper	1,646.7	1,748.2	-6	-4	-1	-1
Industry & Water	1,301.4	1,635.5	-20	+3	0	-28
Total	2,948.1	3,383.7	-13	-1	0	-14
Industry & Water, O&G divestment adjusted	1,256.9	1,140.9	+10
Total, O&G divestment adjusted	2,903.5	2,889.0	+1

The Industry & Water, O&G divestment adjusted revenue of EUR 1,256.9 million includes contract manufacturing for

Sterling Specialty Chemicals (the acquirer of Kemira's Oil & Gas business). Organic growth excludes the impact of

contract manufacturing for Sterling Specialty Chemicals.

*Revenue growth in local currencies, excluding acquisitions and divestments. .

Geographically, the revenue split was as follows: EMEA (Europe, Middle East, Africa) 52%

(48%), the Americas 38% ( 43% ) and Asia Pacific 10% ( 9%).

Operative EBITDA decreased by 12%, to EUR 585.4 million (666.7), mainly due to the

divestment of Oil & Gas. The Oil & Gas divestment adjusted operative EBITDA decreased to

EUR 582.1 million (595.9). The Oil & Gas divestment adjusted operative EBITDA in Industry &

Water increased, while it declined in the Pulp & Paper segment due to lower sales prices. The

operative EBITDA margin increased slightly to increased to 19.9% (19.7%). The Oil & Gas

adjusted operative EBITDA margin was strong, at 20.0% (20.6%), with solid margin

performance in both segments.


Variance analysis, EUR million	Jan-Dec
Operative EBITDA, 2023	666.7
Sales volumes	+63.2
Sales prices	-175.7
Variable costs	+148.8
Fixed costs	-33.7
Currency exchange	-0.2
Others	-14.4
Divestments	-69.3
Operative EBITDA, 2024	585.4


Operative EBITDA	2024	2023	∆%	2024	2023
Operative EBITDA	EUR, million	EUR, million	∆%	%-margin	%-margin
Pulp & Paper	303.1	330.9	-8	18.4	18.9
Industry & Water	282.3	335.8	-16	21.7	20.5
Total	585.4	666.7	-12	19.9	19.7
Industry & Water, O&G divestment adjusted	279.1	265.0	+5	22.2	23.2
Total, O&G divestment adjusted	582.1	595.9	-2	20.0	20.6

EBITDA increased by 2% to EUR 550.7 million (540.0). The difference between it and operative

EBITDA is explained by items affecting comparability. Items affecting comparability were

mainly related to Kemira's new organization and the expected underutilization of a single-

asset energy company in Pori, Finland, majority owned by Kemira via Pohjolan Voima. Items

affecting comparability in the comparison period were mainly related to the loss from the

divestment of the Oil & Gas business.

KEMIRA 2024 | FINANCIAL STATEMENTS | 6

BOARD OF DIRECTORS' REVIEW 2024


Items affecting comparability, EUR million	2024	2023
Within EBITDA	-34.8	-126.7
Pulp & Paper	-20.6	-22.9
Industry & Water	-14.1	-103.7
Within depreciation, amortization and impairments	-0.7	0.0
Pulp & Paper	-0.7	0.0
Industry & Water	0.0	0.0
Total items affecting comparability in EBIT	-35.5	-126.7

Depreciation, amortization, and impairments were EUR 187.4 million (203.6), including the

EUR 5.8 million (6.9) amortization of purchase price allocation.

Operative EBIT decreased by 14% compared to the previous year, mainly due to the

divestment of Oil & Gas. Oil & Gas divestment adjusted operative EBIT decreased by 5%. EBIT

increased by 8% 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 -26.9 million (-44.4). The decrease was driven by lower net debt

and resulting lower net interest expenses. Income taxes were EUR -73.6 million ( -80.7), with

the reported tax rate being 22% (28%). Net profit for the period increased by 24% as the

comparison period was impacted by the loss from the divestment of the Oil & Gas business.

Financial position and cash flow

Cash flow from operating activities in January-December 2024 was solid, at EUR 484.6 million

( 546.0 ). Cash flow after investing activities increased to EUR 411.8 million (349.3). In addition,

Kemira received proceeds during Q1 2024 following the divestment of its Oil & Gas business.

Kemira's supplementary pension fund, Neliapila, also returned excess capital totaling EUR 12

million during Q1 2024. Net working capital decreased compared to end of year 2023.

At the end of the period, interest-bearing liabilities totaled EUR 810.7 million (937.8 ), including

lease liabilities of EUR 132.2 million (121.4). The average interest rate of the Group’s interest-

bearing loan portfolio (excluding leases) was 2.8% (2.8%) and the duration was 13 months (16).

Due to a strong cash position, fixed-rate loans accounted for 114% (77%) of net interest-

bearing liabilities, including lease liabilities.

Short-term liabilities, maturing in the next 12 months, amounted to EUR 263.6 million. On

December 31, 2024, cash and cash equivalents totaled EUR 519.2 million (402.5). In Q4 2024,

Kemira drew down on a bilateral loan of EUR 50 million with maximum 10 year maturity. The

Group retains a EUR 400 million undrawn committed credit facility, maturing in 2026.

At the end of the period, Kemira Group’s net debt was EUR 291.5 million (535.2 ), including

lease liabilities. The equity ratio was 53% (48% ) while gearing was 16% (32%). At the end of

December 2024, net debt / operative EBITDA was at a record-strong level of 0.5.

Kemira is exposed to transaction and translation currency risks. The Group's most significant

transaction currency risks arise from the US dollar, the Chinese renminbi, the Canadian dollar

and the Swedish krona. At the end of the year, the US dollar denominated exchange rate risk

against EUR had an equivalent value of approximately EUR 142 million, of which 62% was

hedged on an average basis. The Chinese renminbi denominated exchange rate risk against

EUR had an equivalent value of approximately EUR 121 million, of which 74% was hedged on an

average basis. The Canadian dollar denominated exchange rate risk against EUR was

approximately EUR 41 million, of which 73 % was hedged on an average basis. The Swedish

krona denominated exchange rate risk against EUR had an equivalent value of approximately

EUR 39 million, of which 71% was hedged on an average basis. In addition, Kemira is exposed

to smaller transaction risks against EUR, mainly in relation to the Danish krona, the Polish

zloty, the Korean won and the Norwegian krona and against USD mainly in relation to the

Brazilian real and the Canadian dollar, with annual exposure in those currencies being

approximately EUR 144 million.

As Kemira’s consolidated financial statements are compiled in euros, Kemira is also subject to

a currency translation risk to the extent to which the income statement and balance sheet

items of subsidiaries located outside Finland are reported in a currency other than the euro.

The most significant currency translation exposure derives from the US dollar and the

Canadian dollar. The strengthening of these currencies against the euro would increase

Kemira’s revenue and EBITDA through a translation effect.

KEMIRA 2024 | FINANCIAL STATEMENTS | 7

BOARD OF DIRECTORS' REVIEW 2024

Capital expenditure

In January-December 2024, capital expenditure excluding acquisitions decreased by 18%, to

EUR 167.3 million (204.9). Oil & Gas divestment adjusted capital expenditure decreased by 11%,

to EUR 167.3 million (187.7). Capital expenditure excluding acquisitions (capex) can be broken

down as follows: expansion capex 12% (16%), improvement capex 25% (28%) and maintenance

capex 64% (55%)

Research and Development

In January-December 2024, total research and development expenses were EUR 33.8 million

(34.2 ), representing 1.1% ( 1.0%) of the Group’s revenue. Sustainable and renewable solutions

are cornerstones of Kemira's strategic priorities, and consequently they are also the focus of

a majority 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.

Kemira’s research and development is an enabler of growth and further differentiation. New

product launches contribute to the efficiency and sustainability of customer processes as

well as to improved profitability. Both Kemira’s future market position and profitability depend

on the company’s ability to understand and meet current and future customer needs and

market trends, as well as on its ability to innovate with differentiated products and

applications.

At the end of 2024, Kemira had 388 (419) patent families, including 1,868 (2,041) granted

patents and 929 (963) pending applications. During 2024, Kemira applied for 54 (55) new

patents and started 21 new product development projects, 81% of them aiming to improve

customer' resource efficiency. At the same time, Kemira started the commercialization of 24

new products, originating from 14 different projects. Kemira has also started several external

partnerships in order to innovate and commercialize new renewable solutions for its

customers. During 2024, Kemira R&D implemented a program to improve the time-to-market

of R&D projects (the time required from project start to commercial launch). The program

resulted in a significant shortening of the time-to-market, with a 43% improvement compared

to 2023.

Human resources

At the end of the period Kemira Group had 4,698 employees (4,915). Kemira had 779 (790)

employees in Finland, 1,738 (1,709) employees elsewhere in EMEA, 1,242 (1,484) in the

Americas and 939 (932) 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 2024 Sustainability Statement, prepared according to the

Corporate Sustainability Reporting Directive requirements (CSRD).

SUSTAINABILITY PERFORMANCE IN 2024

SAFETY

TRIF* in 2024 was 3.2 (2023: 2.5). In 2024, Kemira ran a global safety training program with the

aim of training all 350 first line managers at all Kemira manufacturing sites. Kemira also re-

evaluated the safety target and adjusted it from 1.5 to 2.2 by end of 2025, and from 1.1 to 1.5 by

end of 2030.

PEOPLE

Kemira's target is to reach the top 10% cross industry benchmark for Diversity & Inclusion

(DEI) by the end of 2025, as measured by our Inclusion Index. The current gap to the top 10% is

3 points. In 2024, our DEI program progressed as planned. During the year, over 86% of

employees had completed DEI awareness eLearning and 21 inclusive leaders workshops were

completed, covering key themes such as psychological safety and inclusive leadership

behaviors. In January 2025, Kemira was ranked among the top ten Large Cap-listed

companies in Finland in the Nordic Business Diversity Index 2025, based on the data

collection period October-December 2024.

KEMIRA 2024 | FINANCIAL STATEMENTS | 8

BOARD OF DIRECTORS' REVIEW 2024

CIRCULARITY

Kemira continued to progress its renewable solutions strategy in 2024. Kemira e.g. announced

together with IFF a successful completion of a renewable polymer plant in Finland and that it

is exploring options to expand the partnership with IFF by setting up a manufacturing joint

venture in Finland. Renewable solutions revenue increased to EUR 240 million in 2024. In

2024, Kemira continued to reduce waste volumes in its manufacturing operations - both

hazardous and non-hazardous waste. Since 2019, Kemira’s total waste in manufacturing

operations has decreased by over 50% (hazardous waste by 70% and non-hazardous waste by

more than 40%). The decrease is mostly due to decrease in the proportion of waste-intensive

products. Kemira’s disposed production waste intensity increased to 4.2 in 2024.

WATER

In line with our ambition to expand the water business, Kemira entered the activated carbon

market for micropollutants removal via an acquisition in the United Kingdom. In 2024, Kemira

continued to reduce water consumption in its manufacturing operations. Since 2019 Kemira’s

water consumption in manufacturing operations has decreased by over 25%. The decrease is

mostly due to decrease in the proportion of water-intensive products. In 2024, Kemira also

continued efforts to reduce water impacts in our own operations. Kemira’s life cycle

assessment capabilities were further strengthened to better understand water impacts

throughout the value chain. The new CDP Water Security ratings were published in February

2025. Kemira has retained a B score (Management level) since the first full reporting

questionnaire in 2021, even as the scoring criteria have been tightened in the intervening

years.

CLIMATE

The Science Based Targets Initiative (SBTi) validated Kemira's scope 1, 2 and 3 emission

reduction targets in October 2024. Kemira has committed to reducing scope 1 and 2 emissions

by 51.23% by the end of 2030, from a 2018 base year, and scope 3 emissions by 32.5% by the

end of 2033 from a 2021 base year. During 2024, Kemira's scope 1, 2 and 3 emissions were

rather stable despite higher sales volumes, which is aligned with the SBTi target trajectory.

The new CDP Climate Change 2024 ratings were published in February 2025. Kemira retained

its B score.


SDG	KPI	UNIT	2024	2023
	SAFETY		3.2	2.5
	TRIF* 2.2 by the end of 2025 and 1.5 by the end of 2030 *TRIF = total recordable injury frequency per million hours, Kemira + contractors
	PEOPLE		Slightly outside the top 25%	In the top 25%
	Reach Glint top 10% cross industry norm for Diversity & Inclusion by the end of 2025
	CIRCULARITY	kg/tonnes of production	4.2	4.1
	Reduce waste intensity by 15% by the end of 2030 from a 2019 baseline of 4.4 kilograms of disposed production waste per metric tonnes of production
	Renewable solutions > EUR 500 million revenue by the end of 2030	EUR million	240	226
	WATER	Rate scale A-D	B	B
	Reach the Leadership level (A) in water management by the end of 2025 measured by CDP Water Security scoring methodology.
	CLIMATE	ktCO2e	586	589
	Scope 1 and 2**** emissions -51.23% by the end of 2030, compared to 2018 baseline of 894 ktCO2e.
	Scope 3 emissions by -32.5% by the end of 2033 from a 2021 base year of 2,337.5 ktCO2e.	ktCO2e	1,881	1,863

**After the divestment of the Oil & Gas business, Kemira’s waste target was adjusted in Q2 to exclude the impact of all

divestments since the baseline year 2019. Reported figures for 2022 and 2023 have also been adjusted.

***Kemira's climate target has been updated to align with the SBTi validated target. Baseline years and years 2023 and

2024 have been adjusted to reflect the divestment of the Oil & Gas business and other minor divestments.

****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. Scope 3: Indirect greenhouse gas emissions from purchased raw

materials, traded goods and transportation of materials.

KEMIRA 2024 | FINANCIAL STATEMENTS | 9

BOARD OF DIRECTORS' REVIEW 2024

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 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. As of Q1 2025, the Pulp & Paper business will be split into two business units:

Packaging & Hygiene Solutions and Fiber Essentials to sharpen strategic focus and to

accelerate profitable growth.


EUR million	2024	2023
Revenue	1,646.7	1,748.2
Operative EBITDA	303.1	330.9
Operative EBITDA, %	18.4	18.9
EBITDA	282.4	308.0
EBITDA, %	17.2	17.6
Operative EBIT	183.8	216.3
Operative EBIT, %	11.2	12.4
EBIT	162.4	193.4
EBIT, %	9.9	11.1
Capital employed*	1,286.7	1,282.0
Operative ROCE*, %	14.3	16.9
ROCE*, %	12.6	15.1
Capital expenditure excl. M&A	99.2	124.4
Capital expenditure incl. M&A	99.2	126.2
Cash flow after investing activities	202.4	216.3

*12-month rolling average

The segment’s revenue decreased by 6%. Revenue in local currencies, excluding divestments

and acquisitions, decreased by 4%.This was mainly due to lower sales prices, particularly in

energy-intensive pulp and bleaching chemicals where sales prices declined in H1 2024 from an

elevated comparison period, before stabilizing during the second half of 2024. Sales volumes

increased in all product groups and in all geographical regions, particularly in specialty

chemicals and geographically in the EMEA region.

In EMEA, revenue decreased by 9%, to EUR 813.2 million (891.4), mainly due to lower sales

prices in bleaching chemicals, where sales prices declined from an elevated comparison

period. Sales volumes increased, particularly in sizing chemicals.

In the Americas , revenue decreased by 2%, to EUR 560.9 million (573.1). Revenue in local

currencies, excluding acquisitions and divestments, increased by 1% as sales volumes

increased across product groups, particularly in specialty chemicals. Sales prices decreased

in all product groups.

In APAC, revenue decreased by 4%, to EUR 272.6 million (283.6). Revenue in local currencies,

excluding acquisitions and divestments, decreased by 2% due to lower sales prices in all

product groups. Sales volumes increased, particularly in specialty chemicals.

Operative EBITDA decreased by 8% as lower sales prices and higher fixed costs were not fully

offset by successful variable cost management and higher sales volumes. The operative

EBITDA margin declined slightly, to 18.4%. EBITDA decreased by 8%. The difference between

it and operative EBITDA is explained by items affecting comparability, which were mainly

related to Kemira's new organization and the expected underutilization of a single-asset

energy company in Pori, Finland, majority owned by Kemira via Pohjolan Voima. Items

affecting comparability in the comparison period mainly consisted of a provision related to

the expected underutilization of a single asset energy company in Pori, Finland, majority

owned by Kemira via Pohjolan Voima and to a loss from the divestment of most of our

colorants business.

KEMIRA 2024 | FINANCIAL STATEMENTS | 10

BOARD OF DIRECTORS' REVIEW 2024

INDUSTRY & WATER

Industry & Water offers a wide range of innovative solutions to optimize all stages of the water

treatment process, while also 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. Water is

expected to be a key contributor for Kemira's future revenue growth going forward and our

new long-term ambition is to double our revenue in water. As of Q1 2025, the business unit will

be called Water Solutions.

The segment’s revenue decreased by 20% due to the divestment of Oil & Gas. Revenue in

local currencies, excluding acquisitions and divestments, increased by 3%. Sales volumes

increased in both polymers and coagulants. Sales prices decreased across product groups.

Currencies had a positive impact.

In EMEA, revenue was stable at EUR 730.6 million (730.4). Sales volumes increased in all

product groups, particularly in polymers. Sales prices decreased.

In the Americas, revenue decreased by 38%, to EUR 552.0 million (885.1) due to the

divestment of Oil & Gas. Revenue in local currencies, excluding acquisitions and divestments,

increased by 7%, following higher sales volumes in coagulants. Sales prices also increased.

In APAC, revenue decreased by 6%to EUR 18.8 million (20.0).

Operative EBITDA decreased by 16% following the divestment of Oil & Gas. The operative

EBITDA margin increased to 21.7%. Oil & Gas divestment adjusted operative EBITDA increased

by 5%, to EUR 279.1 million (EUR 265.0 million). The Oil & Gas divestment adjusted operative

EBITDA margin was strong at 22.2% (23.2%), following successful variable cost management

and higher sales volumes. EBITDA increased by 16% and the difference to operative EBITDA

is explained by items affecting comparability which were mainly related to the divestment of

Oil & Gas and Kemira's new organization. Items affecting comparability in the comparison

period were mainly related to the expected loss from the divestment of Oil & Gas.


EUR million	2024	2023
Revenue	1,301.4	1,635.5
Revenue, O&G divestment adjusted	1,256.9	1,140.9
Operative EBITDA	282.3	335.8
Operative EBITDA, O&G divestment adjusted	279.1	265.0
Operative EBITDA, %	21.7	20.5
Operative EBITDA %, O&G divestment adjusted	22.2	23.2
EBITDA	268.2	232.0
EBITDA, %	20.6	14.2
Operative EBIT	214.9	246.7
Operative EBIT, O&G divestment adjusted	211.7	199.2
Operative EBIT, %	16.5	15.1
Operative EBIT %, O&G divestment adjusted	16.8	17.5
EBIT	200.8	143.0
EBIT, %	15.4	8.7
Capital employed*	633.5	873.5
Operative ROCE*, %	33.9	28.2
Operative ROCE*, %, O&G divestment adjusted	33.4	34.7
ROCE*, %	31.7	16.4
Capital expenditure excl. M&A	68.2	80.5
Capital expenditure, excl. acquisitions, O&G divestment adjusted	68.2	63.4
Capital expenditure incl. M&A	71.3	80.5
Cash flow after investing activities	328.8	242.5

*12-month rolling average

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

includes 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.

KEMIRA 2024 | FINANCIAL STATEMENTS | 11

BOARD OF DIRECTORS' REVIEW 2024

The parent company’s financial performance

Kemira Oyj’s revenue decreased to EUR 1,950.3 million (2,030.4) in 2024. EBITDA was EUR

148.5 million (195.7). The parent company’s financing income and expenses were EUR 97.9

million (-24.9) following a lower write-off of group company shares and higher dividend

income, currency exchange income and other financial income. The net result for the financial

year increased to EUR 183.6 million (104.2) following increased financing income. Total capital

expenditure was EUR 15.4 million (18.2), excluding investments in subsidiaries.

Kemira Oyj had 506 (2023: 500, 2022: 502) employees on average during 2024.

Related party transactions as defined in the Finnish Company Act have been presented in

Note 24 Related Party Transactions.

Kemira Oyj’s shares and shareholders

On December 31, 2024, Kemira Oyj’s share capital amounted to EUR 221.8 million and the

number of shares was 155,342,557. Each share entitles the holder to one vote at the Annual

General Meeting.

At the end of December 2024 , Kemira Oyj had 48,255 registered shareholders (49,659 on

December 31, 2023 ). Non-Finnish shareholders held 38.3 % of the shares ( 34.7% on December

31, 2023 ), including nominee-registered holdings. Households owned 18.1% 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 16% during the reporting period and closed at EUR 19.52

on the Nasdaq Helsinki at the end of December 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-December 2024 and

the average share price was EUR 19.84. The company’s market capitalization, excluding

treasury shares, was EUR 3,006 million at the end of December 2024 (2,579 on December 31,

2023).

In January-December 2024 , Kemira Oyj’s share trading turnover on the Nasdaq Helsinki was

EUR 892 million (EUR 688 million in January-December 2023). The average daily trading

volume was 183,567 shares ( 174,707 in January-December 2023). The total volume of Kemira

Oyj’s share trading in January-December 2024 was 63 million shares (57 million shares in

January-December 2023), 25% (23% in January-December 2023) of which was executed on

other trading platforms (e.g. Turquoise, CBOE DXE). Source: Nasdaq and Kemira.com.

Kemira was included in the Euro Stoxx 600 index in June 2024 and in the Finnish OMX25 index

in August 2024.

FLAGGING NOTIFICATIONS

February 13, 2024: Solidium Oy's shareholding decreased to below 5% as Solidium Oy sold all

the Kemira shares in its possession.

Management shareholding

The members of the Board of Directors as well as the Interim President and CEO and his

Deputy held 280,562 (214,529) Kemira Oyj shares on December 31, 2024 or 0.18% (0.14%) of all

outstanding shares and voting rights (including treasury shares and shares held by the related

parties and controlled corporations). Antti Salminen, President and CEO, held 99,166 shares

on December 31, 2024. Members of the Management Board, excluding the President and CEO

and his Deputy, held a total of 286,517 shares on December 31, 2024 (245,128), representing

0.18% (0.16%) of all outstanding shares and voting rights (including treasury shares and shares

held by the related parties and controlled corporations). Up-to-date information regarding the

shareholdings of the Board of Directors and Management is available on Kemira’s website at

kemira.com/investors .


	Amount of shares		% of shares
Owners	Dec 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Board of Directors	63,309	55,702	0.04	0.04
President and CEO*	99,166	56,140	0.06	0.04
CEO's Deputy	118,087	102,687	0.08	0.07
Members of the Management Board (excl. CEO and CEO's Deputy)	286,517	245,128	0.18	0.16

*Petri Castrén acted as Interim President and CEO as of July 18, 2023. Antti Salminen started as the President and CEO

on February 12, 2024.

KEMIRA 2024 | FINANCIAL STATEMENTS | 12

BOARD OF DIRECTORS' REVIEW 2024

OWNERSHIP DECEMBER 31, 2024


	% of shares and votes
Owners	2024	2023
Corporations	26.9	26.0
Financial and insurance corporations	5.0	4.0
General government	9.1	13.6
Households	18.1	19.0
Non-profit institutions	2.4	2.7
Non-Finnish shareholders incl. nominee registered	38.3	34.7

SHAREHOLDING BY NUMBER OF SHARES HELD DECEMBER 31, 2024


Number of shares	Number of shareholders	% of shareholders	Shares total	% of shares and votes
1 - 100	18,959	39.3%	884,776	0.6
101 - 500	17,674	36.6%	4,649,936	3.0
501 - 1,000	5,561	11.5%	4,250,058	2.7
1,001 - 5,000	5,105	10.6%	10,614,751	6.8
5,001 - 10,000	535	1.1%	3,823,615	2.5
10,001 - 50,000	337	0.7%	6,471,254	4.2
50,001 - 100,000	32	0.1%	2,260,115	1.5
100,001 - 500,000	37	0.1%	7,631,223	4.9
500,001 - 1,000,000	7	0.0%	5,342,805	3.4
1,000,001 -	8	0.0%	109,414,024	70.4
Total	48,255	100.0%	155,342,557	100.0

LARGEST SHAREHOLDERS DECEMBER 31, 2024


	Shareholder	Number of shares	% of shares and votes
1	Oras Invest Ltd	35,103,000	22.6
2	Varma Mutual Pension Insurance Company	5,732,678	3.7
3	Nordea Funds	4,540,904	2.9
4	Ilmarinen Mutual Pension Insurance Company	3,959,870	2.6
5	Elo Mutual Pension Insurance Company	2,330,000	1.5
6	Etola Group Oy	1,000,000	0.6
7	Veritas Pension Insurance Company Ltd.	870,000	0.6
8	Laakkonen Mikko Kalervo	770,000	0.5
9	The State Pension Fund	760,000	0.5
10	Säästöpankki Funds	651,936	0.4
11	Nordea Life Assurance Finland Ltd.	640,721	0.4
12	Pohjola Fund Management	500,641	0.3
13	Seligson Funds	494,153	0.3
14	Paasikivi Pekka Johannes	462,200	0.3
15	Valio Pension Fund	379,450	0.2
	Kemira Oyj	1,359,348	0.9
	Nominee registered and foreign shareholders	59,106,429	38.1
	Others, Total	36,681,227	23.6
	Total	155,342,557	100.0

KEMIRA 2024 | FINANCIAL STATEMENTS | 13

BOARD OF DIRECTORS' REVIEW 2024

SHARE KEY FIGURES


	2024	2023	2022	2021	2020
PER SHARE FIGURES
Earnings per share (EPS), basic, EUR ¹⁾	1.62	1.30	1.51	0.71	0.86
Earnings per share (EPS), diluted, EUR ¹⁾	1.61	1.28	1.50	0.70	0.86
Net cash generated from operating activities per share, EUR ¹⁾	3.15	3.56	2.61	1.44	2.45
Dividend per share, EUR ¹⁾ ²⁾	0.74	0.68	0.62	0.58	0.58
Dividend payout ratio, % ¹⁾ ²⁾	45.7	52.4	41.0	82.2	67.5
Dividend yield, % ¹⁾ ²⁾	3.8	4.1	4.3	4.4	4.5
Equity per share, EUR ¹⁾	11.59	10.84	10.89	8.68	7.80
Price per earnings per share (P/E ratio) ¹⁾	12.04	12.95	9.48	18.88	15.07
Price per equity per share ¹⁾	1.68	1.55	1.32	1.54	1.66
Price per cash flow from operations per share ¹⁾	6.20	4.72	5.49	9.27	5.28
Dividend paid, EUR million ²⁾	113.9	104.5	95.1	88.8	88.7
SHARE PRICE AND TRADING
Share price, high, EUR	24.58	18.22	14.94	14.66	14.24
Share price, low, EUR	15.96	13.51	10.36	12.64	8.02
Share price, average, EUR	19.84	15.36	12.57	13.67	11.55
Share price on Dec 31, EUR	19.52	16.79	14.33	13.33	12.94
Number of shares traded (1,000) ³⁾	46,801	43,852	37,017	57,478	75,885
% on number of shares	30	29	24	38	50
Market capitalization on Dec 31, EUR million ¹⁾	3,006	2,579	2,198	2,041	1,979
NUMBER OF SHARES AND SHARE CAPITAL
Average number of shares, basic (1,000) ¹⁾	153,921	153,573	153,320	153,092	152,879
Average number of shares, diluted (1,000) ¹⁾	155,234	155,051	154,261	153,785	153,373
Number of shares on Dec 31, basic (1,000) ¹⁾	153,983	153,620	153,352	153,127	152,924
Number of shares on Dec 31, diluted (1,000) ¹⁾	155,409	155,303	154,894	154,068	153,744
Increase (+) / decrease (-) in number of shares outstanding (1,000)	363	267	225	203	275
Share capital, EUR million	221.8	221.8	221.8	221.8	221.8

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

2) The dividend for 2024 is the Board of Directors' proposal to the Annual General Meeting.

3) Shares traded on Nasdaq Helsinki only)

Definition of key figures are disclosed in the section on the Definition of key figures.

AGM decisions

ANNUAL GENERAL MEETING

Kemira Oyj's Annual General Meeting. held on March 20, 2024, approved the Board of

Directors’ dividend proposal of EUR 0.68 per share for the financial year 2023. The dividend

was paid in two installments. The first installment of EUR 0.34 per share was paid on April 4,

2024. The Annual General Meeting also authorized the Board of Directors to decide on the

record date and the payment date for the second installment of the dividend.

The Board of Directors decided on the record date and the payment date for the second

installment of the dividend of EUR 0.34 at its meeting on October 24, 2024. The payment date

of the second installment of the dividend was November 5, 2024. Kemira announced the

resolution of the Board of Directors with a separate stock exchange release and confirmed

both the record and the payment dates.

The 2024 AGM 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"). This

corresponds to approximately 4.2% of all shares and votes in the company. The shares shall

be repurchased by using unrestricted equity, either through a tender offer with equal terms to

all shareholders at a price determined by the Board of Directors or otherwise than in

proportion to the existing shareholdings of the company’s shareholders (directed

repurchase). The price paid for the shares repurchased through a tender offer under this

authorization shall be based on the market price of the company’s shares in public trading.

The minimum price to be paid would be the lowest market price of the shares quoted in public

trading during the authorization period and the maximum price the highest market price

quoted during the authorization period. The price paid for the shares repurchased through

directed repurchase under the authorization shall be based on the share price formed in

public trading on the date of the repurchase or a price otherwise formed on the market. The

shares shall be acquired and paid for in accordance with the rules of Nasdaq Helsinki and the

rules of Euroclear Finland Ltd, as well as other applicable regulations. The shares may be

repurchased to be used in implementing or financing mergers and acquisitions, or for

developing the company’s capital structure, improving the liquidity of the company’s shares

or for the payment of the annual fee payable to the members of the Board of Directors or

implementing the company’s share-based incentive plans. In order to realize the

aforementioned objectives, the shares acquired may be retained, transferred further or

KEMIRA 2024 | FINANCIAL STATEMENTS | 14

BOARD OF DIRECTORS' REVIEW 2024

cancelled by the company. The Board of Directors shall decide upon how the shares are to be

repurchased and on the other terms related to any share repurchase. The Share repurchase

authorization is valid until the end of the next Annual General Meeting. The authorization was

not used by December 31, 2024.

The Annual General Meeting authorized the Board of Directors to decide to issue, through one

or through several share issues, a maximum of 15,600,000 of new shares and to transfer a

maximum of 7,800,000 of the company’s own shares currently held by the company (“Share

issue authorization”). The new shares may be issued and the company’s own shares held by

the company may be transferred, either for consideration or without consideration. The new

shares may be issued and the company’s own shares held by the company may be transferred

to the company’s shareholders in proportion to their current shareholdings in the company, or

by disapplying the shareholders’ pre-emption right, through a directed share issue, if the

company has a weighty financial reason to do so, such as financing or implementing mergers

and acquisitions, developing the capital structure of the company, improving the liquidity of

the company’s shares or, if it is justified, for the payment of the annual fee payable to the

members of the Board of Directors or implementing the company’s share-based incentive

plans. The directed share issue may be carried out without consideration only in connection

with the implementation of the company’s share-based incentive plans. The subscription

price of new shares shall be recorded in the invested unrestricted equity reserves. The

consideration payable for the company’s own shares shall be recorded in the invested

unrestricted equity reserves. The Board of Directors shall also decide upon any other terms

related to the share issues. The Share issue authorization is valid until May 31, 2025. The share

issue authorization has been used and shares owned by the Group were conveyed to

members of the Board of Directors and key employees in connection with their remuneration.

The Annual General Meeting decided for the Articles of Association to be amended in full, to

better reflect market practices and to update certain wordings and phrases to reflect current

applicable regulations.

Furthermore, the Annual General Meeting issued the advisory resolution on the acceptance of

the Remuneration Report 2023. The Annual General Meeting also issued the advisory

resolution on the acceptance of the Remuneration Policy for the Governing Bodies.

The AGM elected Ernst & Young Oy to serve as the company’s auditor, with Mikko Rytilahti,

Authorized Public Accountant, acting as the key audit partner. Ernst & Young Oy was also

elected as the sustainability assurance provider with Mikko Rytilahti, Authorized Public

Accountant and Authorized Sustainability Auditor, assuring the sustainability report.

Corporate governance and group structure

Kemira Oyj’s corporate governance is based on the Articles of Association, on the Finnish

Companies Act and on Nasdaq Helsinki’s rules and regulations on listed companies.

Furthermore, the company complies with the Finnish Corporate Governance Code. The

company’s corporate governance is presented as a separate statement on the company’s

website.

BOARD OF DIRECTORS

On March 20, 2024, the Annual General Meeting elected eight members to the Board of

Directors. The Annual General Meeting re-elected Tina Sejersgård Fanø, Werner Fuhrmann,

Matti Kähkönen, Timo Lappalainen, Fernanda Lopes Larsen, Annika Paasikivi, Kristian Pullola

and Mikael Staffas. Matti Kähkönen was elected as the Chair of the Board of Directors and

Annika Paasikivi was elected as the Vice Chair. Fernanda Lopes Larsen resigned from the

Board as of July 31, 2024 for time management reasons and as she was elected as a member

of the Board of Directors of another company. In 2024, Kemira’s Board of Directors met 11

times, with a 99% attendance rate.

Kemira Oyj’s Board of Directors has appointed two committees: the Personnel and

Remuneration Committee and the Audit Committee. The Personnel and Remuneration

Committee is chaired by Annika Paasikivi and has Tina Sejersgård Fanø, Timo Lappalainen and

Mikael Staffas as members. Matti Kähkönen was a member of the committee until the Annual

General Meeting. In 2024, the Personnel and Remuneration Committee met 8 times, with a 94

% attendance rate. The Audit Committee was chaired by Timo Lappalainen until the Annual

General Meeting and by Kristian Pullola after that. The Committee's third member is currently

Werner Fuhrmann. In addition, Fernanda Lopes Larsen was a member until her resignation

July 31, 2024. In 2024, the Audit Committee met 5 times, with a 100% attendance rate.

STRUCTURE

In 2024, Kemira divested its Oil & Gas-related portfolio. The divestment of the Oil & Gas

business was closed on February 2, 2024.

KEMIRA 2024 | FINANCIAL STATEMENTS | 15

BOARD OF DIRECTORS' REVIEW 2024

Short-term risks and uncertainties

PRICE AND AVAILABILITY OF RAW MATERIALS AND COMMODITIES

A significant and sudden increase in the cost of raw materials, commodities or logistics could

place Kemira’s profitability at risk if Kemira is not able to pass on such increases in product

prices without delay. For instance, considerable and/or rapid changes in oil and gas

derivatives or in electricity prices could materially impact Kemira’s profitability. Changes in

the raw material supplier field, such as a consolidation or decreasing capacity may also

increase raw material prices. Furthermore, significant demand changes in industries that are

the main users of certain raw materials may lead to raw material price fluctuations. In 2024,

raw material and commodity prices, including the prices of energy and electricity, decreased

compared to 2023.

Poor availability of certain raw materials may affect Kemira’s production and profitability if

Kemira fails to prepare adequately, by mapping out alternative suppliers or opportunities for

process changes. Raw material and commodity-related risks can be monitored effectively and

be managed by Kemira's centralized Sourcing unit. Risk management measures include, for

instance, forward-looking forecasting of key raw material and commodity prices, the

synchronization of raw material purchase and sales agreements, captive manufacturing of

some of the critical raw materials, strategic investments in energy-generating companies and

hedging a portion of the total energy and electricity spend. Kemira demonstrated good

resilience in managing its raw material risks in 2024.

SUPPLIERS

The continuity of Kemira’s business operations is dependent on the reliable supply of good-

quality products and services. Kemira has numerous partnerships and other agreements with

third-party product and service suppliers in place, to help secure its business continuity.

Certain products used as raw materials are considered critical as purchases can only be made

economically from a sole supplier or from a single source. In the event of a sudden and

significant loss or interruption to the supply of such a raw material, Kemira’s operations could

be impacted and this would have a negative effect on Kemira's business. Ineffective

procurement planning, supply source selection, contract administration as well as inadequate

supplier relationship management create a risk of Kemira not being able to fulfill its promises

to customers. There were no significant raw material shortages that impacted Kemira's

manufacturing operations during 2024.

Kemira sources a large share of its electricity in Finland at production cost (the Mankala

principle), through its partial ownership of the electricity producing hydro and nuclear assets

of Teollisuuden Voima and Pohjolan Voima. Significant long-term disruptions to the

production levels of these assets could have an adverse financial impact on Kemira. Kemira

sources electricity at production cost from these assets, which might be lower or higher

relative to market electricity prices.

Kemira continuously aims to identify, analyze and engage third-party suppliers in a way that

ensures security of supply and the competitive pricing of end products and services.

Collaborative relationships with key suppliers are developed in order to uncover and realize

new value and to reduce risk. Supplier performance is also regularly monitored, as a part of

the supplier performance management process. Due to the high-risk environment relating to

suppliers in the chemical industry, risk management and mitigation in this area is subject to a

continuous level of high focus.

HAZARD RISKS

Kemira’s production activities are exposed to many hazard risks – such as fires and

explosions, machinery breakdowns, natural catastrophes, exceptional weather conditions and

environmental incidents – and to the consequent possible liabilities as well as the risks to

employee health and safety. These risk events may derive from several factors, including (but

not limited to) unauthorized IT system access by a malicious intruder or other cyber security

issues causing possible damage to systems and which in turn could lead to financial losses

and supply disruptions. A systematic focus on achieving set targets, certified management

systems, efficient hazard prevention programs, the promotion of an active safety culture,

adequate maintenance and competent personnel all play a central role in managing these

hazard risks. In addition, Kemira has several insurance programs that protect the company

against the financial impacts of hazard risks. Kemira is continuously and systematically

maintaining and enhancing its information security procedures and technical controls,

including cybersecurity measures focused on protecting digital assets. Kemira safeguards

critical assets such as business-critical information, personal data and systems within

business and on-premises manufacturing and cloud environments from potential threats

such as cyberattacks, data breaches and unauthorized access. Kemira is committed to

fostering a culture of security awareness through regular personnel training and education

programs. Kemira expects all staff to report incidents promptly and efficiently, thereby

enabling effective responses to any security threats. Kemira’s Board of Directors regularly

KEMIRA 2024 | FINANCIAL STATEMENTS | 16

BOARD OF DIRECTORS' REVIEW 2024

reviews information security-related risks. Throughout 2024, Kemira did not experience any

significant information security related incidents.

Kemira's operations rely on functional and up-to-date IT systems. There were no significant IT

related issues during 2024.

CHANGES IN CUSTOMER DEMAND

A significant, unforeseen decline in the use of certain chemicals (e.g. chemicals for packaging

and board production) or in the demand for customers’ products and operations could have a

negative impact on Kemira’s business. A significant decline in certain raw material and utility

prices (e.g. oil and gas derivatives and metals) may shift customers’ activities towards areas

where fewer chemicals are needed. Also, increasing awareness of and concern regarding

climate change and more sustainable products may alter customer demand, for instance, in

favor of water treatment technologies with a lower consumption of chemicals. On the other

hand, possible capacity expansion by customers could increase chemical consumption and

could, in such a way, challenge Kemira’s current production capacity.

In order to manage and mitigate these risks, Kemira systematically monitors leading and early

warning indicators that focus on market developments. Kemira has also continued to focus on

the sustainability of its business and is further improving the coordination and cooperation

between the Business Development, R&D and Sales units, in order to better understand the

future needs and expectations of its customers. During 2024, Kemira continued the

commercialization of new, renewable solutions such as biomass-balanced polymers and

renewable coatings. Kemira also announced the formation of a new New Ventures & Services

unit, planned to be operational in January 2025. The new unit aims to accelerate the

commercialization of various renewable initiatives and services. Timely capital investments as

well as continuous discussions and follow-ups with customers ensure Kemira’s ability to

respond to changes in demand. Kemira’s geographical and customer industry diversification

also provide partial protection against the risk of changing customer demands.

To respond to expected changes in customer requirements, Kemira has also revised its

strategy to focus more on renewable solutions and has also started several external

partnerships in order to innovate and commercialize new renewable solutions for its

customers. Renewable solutions are a significant component of Kemira’s growth ambitions

for the future. Kemira expects to continue investing in renewable solutions projects, the

commercialization of which often involves risks related to e.g. market demand.

In 2024, Kemira announced a new operating model to increase customer-centricity, the speed

of product commercialization and agility. As of January 1, 2025, Kemira has three business

units: Water Solutions, Packaging & Hygiene Solutions and Fiber Essentials. The way of

working in R&D was also changed as of January 1, 2025 and product development was moved

into the business units to increase customer-centricity. The new structure aims to better

anticipate customers’ changing needs and to bring new products and solutions to the market

faster.

ECONOMIC CONDITIONS AND GEOPOLITICAL CHANGES

Uncertainties in global economic and geopolitical developments are considered to include

direct and indirect risks, such as a lower-growth period in global GDP and possible,

unexpected trade-related political decisions, both of which could have unfavorable impacts

on the demand for Kemira’s products. Certain political actions or changes, especially in

countries that are important to Kemira, could cause business interference or other adverse

consequences. The ongoing war in Ukraine, sanctions against Russia as well as ongoing

geopolitical tensions in the Middle East create uncertainty in the global economy. Possible

trade or supply chain disruptions following geopolitical tensions in eastern Asia and the

Middle East could also have an impact on Kemira’s operations. Kemira sources materials,

particularly AKD wax, and has several local manufacturing facilities in APAC, deriving around

10% of its revenue from the region. Kemira does not currently have meaningful operations in

the Middle East but could be exposed to supply chain disruptions, for example.

Weak economic development may bring about customer closures or consolidations, resulting

in a diminished customer base. Unfavorable market conditions may also decrease the

availability and add to the price risk of certain raw materials. Kemira’s geographical and

customer industry diversification only provides partial protection against these risks. Kemira

continuously monitors geopolitical events and changes and always aims to adjust its business

accordingly. Trade war-related risks are also actively monitored and taken into account in

business planning. The risk of tariffs, particularly between the US and other geographical

regions has increased significantly recently, which could impact Kemira’s operations as well

as customers in North America. Kemira predominantly produces locally for local customers

and only imports a small proportion of its raw materials to North America. Kemira is following

KEMIRA 2024 | FINANCIAL STATEMENTS | 17

BOARD OF DIRECTORS' REVIEW 2024

tariff-related discussions closely and has made contingency plans should tariffs be

introduced.

Possible extended strikes in Finland could negatively impact Kemira's ability to run its

operations and could also create risks to near-term customer demand.

COMPETITION

Kemira operates in a rapidly changing and competitive business environment that represents

a considerable risk to meeting its goals. New players seeking a foothold in Kemira’s business

segments may use aggressive means as a competitive tool, which could affect Kemira’s

financial results. Major competitor or customer consolidations could change market dynamics

and could possibly also alter Kemira’s market position.

Kemira is seeking growth in product categories that might be less familiar and where new

competitive situations prevail, particularly in renewable solutions. In the long term,

completely new types of technology may considerably alter the current competitive situation.

This risk is managed at both Group and segment levels, through the continuous monitoring of

markets and competitors. Kemira aims to respond to its competition through the active

management of customer relationships and through the continuous development of its

products and services, to further differentiate itself from competitors and to remain

competitive.

ACQUISITIONS AND PARTNERSHIPS

Kemira is also actively looking for inorganic growth opportunities, particularly in water, that

might be related to market consolidation, expanding geographic coverage or the launching of

new technologies. In addition to organic growth, acquisitions are a potential way to achieve

corporate goals in line with strategies. Consolidations are driven by chemical manufacturers’

interests in realizing synergies and in establishing footholds in new markets. Acquisitions and/

or partnerships may also be needed in order to enter totally new geographical markets and

new product markets. However, the integration of acquired businesses, operations and

personnel also involves risks. Joint ventures always require effective co-operation with joint

venture partners. If integration is unsuccessful, the results may fall short of the targets set for

such acquisitions. In a related development, Kemira acquired a small activated carbon

reactivation facility in 2024.

Kemira has created mergers and acquisitions procedures and has established Group-level

resources dedicated to actively managing mergers and acquisition activities and to

supporting the execution of related business transactions. In addition, external advisory

services are used to screen potential mergers and acquisition targets.

In November 2024, Kemira received an adverse court ruling in Yanzhou, China, related to the

way Kemira's Joint Venture with Tiancheng Wanfeng Chemical Technology Co. (TCWF) is run.

The joint venture, where Kemira holds 80% and TCWF 20%, mainly produces AKD wax and its

key raw material, fatty acid chloride. The joint venture has been in operation in Shandong

Province in China since 2018. Kemira has filed an appeal to a higher court in China as it

believes the Yanzhou court ruling is without merit. There is a risk that the JV's operations

might be impacted, depending on the outcome of the decision by the higher court.

INNOVATION AND RESEARCH & DEVELOPMENT

Kemira’s research and development is a critical enabler of organic growth and further

differentiation. Kemira’s future market position and profitability depend on its ability to

understand and to meet current and future customer needs and market trends and its ability

to innovate new, differentiated products and applications. Furthermore, new product

launches contribute to the efficiency and sustainability of both Kemira’s and its customers’

processes, as well as to improved profitability. A failure to innovate or focus on disruptive new

technologies and products or a failure to effectively commercialize new products and service

concepts may result in the non-achievement of growth targets and may therefore negatively

impact Kemira’s competitive situation.

Innovation- and R&D-related risks are managed through effective R&D portfolio management

and close collaboration between R&D and the two business segments. As of 2025, product

development will move into the new business units, to further increase customer-centricity in

the product development process. With the continuous development of innovation processes,

Kemira is aiming for more effective and stringent project execution. Kemira continues to

focus on the development of more differentiated and sustainable products and processes

and also continuously monitors the sales of its new products and applications.

KEMIRA 2024 | FINANCIAL STATEMENTS | 18

BOARD OF DIRECTORS' REVIEW 2024

CHANGES IN LAWS AND REGULATIONS

Kemira’s business is subject to various laws and regulations which have a relevance in the

development and implementation of Kemira’s strategy. Laws and regulations can generally be

considered an opportunity for Kemira, as tightening regulation is expected to drive water

treatment market growth, with the phosphorus removal of effluent before discharge to a

recipient for example. However, certain legislative initiatives supporting, for instance, the use

of biodegradable raw materials or biological water treatment or limiting the use of aluminum,

may also have a negative impact on Kemira’s business. Significant changes in chemical,

environmental or transportation laws and regulations may also impact Kemira’s profitability

through an increase in production and transportation costs. At the same time, such changes

may also create new business opportunities for Kemira. As an example, possible restrictions

on plastic packaging would likely benefit the fiber-based packaging industry and Kemira. In

addition, Kemira is actively following the European Commission's proposal for Packaging and

Packaging Waste Regulations and its implications, particularly for disposable packaging.

Inclusion of new substances in the REACH authorization process may also place further

requirements on Kemira, where failure to obtain the relevant authorization could impact

Kemira’s business. Certain legislative proposals, especially in Europe, such as the PFAS

restriction proposed during 2023, may in the long-term result in additional requirements for

managing Kemira's manufacturing assets. However, tightening PFAS regulation is also

expected to drive the demand for water treatment applications, e.g. activated carbon, and to

be a driver of future growth. In addition, changes in import/export and customs-related

regulations create a need for monitoring and mastering global trade compliance, in order to

ensure compliant product importation, for example.

Kemira continuously follows regulatory developments, in order to maintain its awareness of

proposed and upcoming changes to those laws and regulations that may have an impact, for

instance, on its sales, production and product development needs. Kemira is actively

collaborating with industry groups and other stakeholders and has established an internal

process to manage substances of potential concern and to create management plans for

them. These plans cover the options for replacing certain substances if they become subject

to stricter regulation, for example. Kemira has also increased its focus and resources in the

management of global trade compliance.

Regulatory effects are also systematically taken into consideration in strategic decision

making. Kemira takes an active role in regulatory discussions, whenever this is justified from

the perspective of the industry or the business. In Europe in particular, after the election of a

new EU Parliament and Commission, the political focus during the 2024-2029 mandate is on

strengthening the EU’s competitiveness and on the simplification and implementation of

previous legislation which may have a positive impact on the chemical industry in general. In

addition, new opportunities are expected in critical areas for Kemira, such as the Clean

Industrial Deal, a revision of the EU Bioeconomy strategy and the upcoming Water Resilience

Strategy which will be published during summer 2025. Based on these planned

announcements, Kemira anticipates an increase in positive awareness, especially with regard

to Kemira’s water treatment activities and the renewable solutions portfolio. The planned

revision of REACH, a regulatory cornerstone for chemical safety in Europe, will be closely

followed by Kemira, in order to mitigate any potential regulatory or administrative burden.

Potential regulatory implications caused by changes in the US government and any

subsequent legislation and trade policies is also being continuously monitored and assessed.

TALENT MANAGEMENT

To secure competitiveness and profitable growth, as well as to improve operational

efficiency, it is essential to attract and to retain personnel with the right blend of skills and

competence. Kemira continuously seeks to identify people with high potential and the key

competencies for future needs. Through the systematic development and improvement of

compensation schemes, learning programs and career development programs, Kemira aims

to ensure the continued presence and availability of skilled personnel in the future.

CLIMATE-RELATED RISKS

Kemira has identified certain climate-related risks that could have an impact on its operations

or on customer demand. Increased awareness of and concern regarding climate change and

more sustainable products may, for example, change customer demand in favor of water

treatment technologies with a lower consumption of chemicals. A proportion of Kemira’s raw

materials are fossil-based. Kemira has taken action to increase the share of renewable and

recyclable raw materials in its portfolio and to reduce reliance on oil and gas derivatives. Many

of Kemira's customers, particularly in the Pulp & Paper segment, have ambitions to be carbon

neutral, which will likely have implications for Kemira and on the chemicals used in the

customers' processes. Extreme weather patterns related to climate change, such as

hurricanes and floods, could also impact Kemira’s supply chain and suppliers as well as

Kemira’s own manufacturing sites. Several climate-related risks are included in Kemira’s

KEMIRA 2024 | FINANCIAL STATEMENTS | 19

BOARD OF DIRECTORS' REVIEW 2024

enterprise risk management portfolio and active monitoring and mitigation planning

continues. In 2024, Kemira continued efforts on climate risk scenario analysis, in accordance

with the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Complementing these efforts, an in-depth geographical climate risk assessment will be

completed in 2025, strengthening our resilience against future regulatory requirements such

as carbon pricing mechanisms that can impact energy and chemical raw materials. In late

2023, Kemira conducted a geographical climate risk assessment in cooperation with an

external third party.

A detailed description of Kemira’s risk management principles is available on the

company’s website at kemira.com/investors Financial risks are described in the Notes to the

Financial Statements for the year 2024, which will be published on February 21, 2025.

Dividend policy and dividend distribution

On December 31, 2024, Kemira Oyj’s distributable funds totaled EUR 794,029,352of which net

profit for the period was EUR 183,609,785. No material changes have taken place in the

company’s financial position after the balance sheet statement date.

Kemira Oyj’s Board of Directors proposes to the Annual General Meeting to be held on March

20, 2025 that a dividend of EUR 0.74 per share, totaling EUR 114 million, be paid on the basis of

the adopted balance sheet for the financial year that ended on December 31, 2024 . The

dividend will be paid in two installments. The first installment, EUR 0.37 per share, will be paid

to shareholders who are registered in the company’s shareholder register maintained by

Euroclear Finland Oy on the record date for the dividend payment: March 24, 2025. The Board

of Directors proposes that the first installment of the dividend be paid out on April 3, 2025.

The second installment, of EUR 0.37 per share, will be paid in November 2025. The second

installment will be paid to shareholders who are registered in the company’s shareholder

Board of Directors will decide the record date and the payment date for the second

installment at its meeting in October 2025. The record date is planned for October 28, 2025

and the dividend payment date for November 4, 2025 at the earliest. Kemira’s dividend policy

aims for a competitive dividend that increases over time.

Changes to Kemira's Management Board

On January 29, 2025, Kemira announced that Simon Bloem has been appointed as Chief

Operations Officer and a member of Kemira’s Group Leadership Team as of May 1, 2025. He

joins Kemira from Envalior where he’s been VP Global Manufacturing Materials since 2023

On August 16, 2024, Kemira announced changes to its operating model to better meet its

profitable growth ambitions. Kemira also announced a new Leadership Team, which will be

effective as of January 1, 2025. The new operating model and new Leadership Team members

are described in more detail below.

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.

New operating model and Leadership Team as of

January 1, 2025

On August 16, 2024, Kemira announced its plans to move to a new operating model and

organizational structure to better enable profitable growth. The new operating model became

effective on January 1, 2025. The changes aim to increase customer centricity, strategic focus

and speed of delivery as well as to accelerate growth and shareholder value creation. As of

January 1, 2025, Kemira moved to three externally reported business units: Water Solutions,

Packaging & Hygiene Solutions and Fiber Essentials.

Water Solutions is Kemira’s largest business unit, reflecting Kemira’s ambitions to significantly

grow the water business both organically and inorganically. The Packaging & Hygiene

Solutions business unit focuses on, among others, the growing renewable solutions market,

particularly packaging, where Kemira’s renewable product offering supports customers on

their sustainability journey. The Fiber Essentials business unit focuses on the pulp and

bleaching market where Kemira’s products play an essential role in the value chain.

In addition, Kemira established a centralized Operations unit and changed the ways of

working in Research & Development. A New Ventures and Services unit was also established.

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BOARD OF DIRECTORS' REVIEW 2024

The new Group Leadership Team members started in their roles on January 1, 2025, led by the

President and CEO Antti Salminen.

Petri Castrén, Chief Financial Officer

Tuija Pohjolainen-Hiltunen, Executive Vice President, Water Solutions

Harri Eronen, Executive Vice President, Packaging & Hygiene Solutions

Antti Matula, Executive Vice President, Fiber Essentials

Simon Bloem, Chief Operations Officer, Operations (will start May 1, 2025)

Eeva Salonen, Executive Vice President, People & Culture

Linus Hildebrandt, Executive Vice President, Strategy & Sustainability

Sampo Lahtinen, Executive Vice President, Research & Innovation

Peter Ersman, Executive Vice President, New Ventures & Services

Petri Castrén, Tuija Pohjolainen-Hiltunen, Eeva Salonen and Linus Hildebrandt were members

of the previous Management Board. Harri Eronen was Interim President of the Pulp & Paper

Segment and has been a member of the Management Board since February 2024.

Other events during the review period

PROPOSALS OF THE NOMINATION BOARD TO THE ANNUAL

GENERAL MEETING 2025

On December 17, 2024, Kemira announced the proposals of the Nomination Board to the

Annual General Meeting 2025.

The Nomination Board proposes to the Annual General Meeting of Kemira Oyj that eight

members be elected to the Board of Directors and that the present members Tina Sejersgård

Fanø, Werner Fuhrmann, Timo Lappalainen, Annika Paasikivi, Kristian Pullola and Mikael

Staffas be re-elected as members and Susan Duinhoven and Matti Lehmus elected as new

members of the Board of Directors. In addition, the Nomination Board proposes that Annika

Paasikivi be elected as the Chair of the Board of Directors and Susan Duinhoven elected as

the Vice Chair.

All the nominees have given their consent to the position and are independent of the

company’s significant shareholders except for Annika Paasikivi. Annika Paasikivi is the

President & CEO of Oras Invest Oy and Oras Invest Oy owns over 10% of Kemira Oyj’s shares.

Current Chair of the Board of Directors, Matti Kähkönen, has informed that he will no longer

be available for re-election to the next term of the Board of Directors. Matti Kähkönen has

served in Kemira’s Board of Directors since 2021 and as the Chair since 2022. The Nomination

Board wishes to thank Matti Kähkönen for his important work at the Board of Directors and

significant contribution to Kemira Oyj during the past four years.

Susan Duinhoven, Ph.D. (Physical Chemistry), University of Wageningen, B. Sc. (Physical

Chemistry), University of Amsterdam, born 1965, has served in multiple leadership positions,

latest as the President and CEO of Sanoma Oyj from 2015 till January 1, 2024. She is a member

of the Board of Directors of KONE Oyj. Susan Duinhoven is a Dutch citizen living in Finland.

Matti Lehmus, M. Sc. (Chemical engineering), Helsinki University of Technology and eMBA,

Helsinki School of Economics, born 1974, has held several leadership positions in the chemical

industry at Neste Corporation, latest as the President and CEO at Neste Corporation from

2022 until October 2024. Matti Lehmus is a Finnish citizen.

Regarding the selection procedure for the members of the Board of Directors, the Nomination

Board recommends that shareholders take a position on the proposal as a whole at the

Annual General Meeting. This recommendation is based on the fact that Kemira’s

shareholders' Nomination Board is separate from the Board of Directors, in line with a good

Nordic governance model. The Nomination Board, in addition to ensuring that individual

nominees for membership of the Board of Directors possess the required competences, is

responsible for making sure that the proposed Board of Directors as a whole also has the best

possible expertise and experience for the company and that the diversity principles of the

company will be met, and that the composition of the Board of Directors meets other

requirements of the Finnish Corporate Governance Code for listed companies.

The Nomination Board proposes that the remuneration paid to the members of the Board of

Directors will be increased as follows (current remuneration in parentheses): for the Chair

EUR 132,000 per year (EUR 125,000), for the Vice Chair and the Chair of the Audit Committee

EUR 74,000 per year (EUR 70,000), for the Chair of the Personnel and Remuneration

KEMIRA 2024 | FINANCIAL STATEMENTS | 21

BOARD OF DIRECTORS' REVIEW 2024

Committee (if the person is not the Chair or Vice Chair of the Board of Directors) EUR 68,000

per year (EUR 65,000) and for the other members EUR 57,000 per year (EUR 54,000).

The Nomination Board proposes that a fee payable for each meeting of the Board of Directors

and the Board Committees to be kept at the current level, and a fee be paid based on the

method of participation and place of the meeting as follows: participating remotely or in a

meeting arranged in the member’s country of residence EUR 750, participating in a meeting

arranged on the same continent as the member’s country of residence EUR 1,500 and

participating in a meeting arranged in a different continent than the member’s country of

residence EUR 3,000.

Travel expenses are proposed to be paid according to Kemira's travel policy.

In addition, the Nomination Board proposes to the Annual General Meeting that the annual

fee be paid as a combination of the company's shares and cash in such a manner that 40% of

the annual fee is paid with the company's shares owned by the company or, if this is not

possible, shares purchased from the market, and 60% is paid in cash. The shares will be

transferred to the members of the Board of Directors and, if necessary, acquired directly on

behalf of the members of the Board of Directors within two weeks from the release of

Kemira's interim report January 1 – March 31, 2025. The meeting fees are proposed to be paid

in cash.

Members of the Nomination Board

The Nomination Board has consisted of the following representatives: Ville Kivelä, Chief

Investment Officer of Oras Invest Oy as the Chair of the Nomination Board; Hanna Kaskela,

Senior Vice President, Sustainability and Communications, Varma Mutual Pension Insurance

Company; Lisa Beauvilain, Global Head of Sustainability & Stewardship, Executive Director,

Impax Asset Management plc and Annika Ekman, Head of Equities, Ilmarinen Mutual

Insurance Company as members of the Nomination Board and Matti Kähkönen, Chair of

Kemira's Board of Directors, as an expert member.

On December 13, 2024, Kemira announced that the new operating model is ready for January

2025. Kemira announced changes to its operating model and leadership team in August to

better meet its profitable growth ambitions.

On November 27, 2024, Kemira announced that its change negotiations, initiated on October

14, 2024 had concluded. 23 employees in Finland will be made redundant as a result of these

negotiations.

On November 15, 2024, Kemira announced its plans to construct a re-activation plant for

activated carbon – the pre-engineering phase is ongoing and Kemira plans to expand its

Helsingborg manufacturing site in Sweden and to invest a figure in the low double-digit

millions of euros to construct the reactivation plant for activated carbon.

On October 30, 2024, Kemira announced its plans to close its manufacturing site in

Vancouver, Canada. Kemira plans to consolidate some Pulp & Paper chemical production in

North America, resulting in the closure of the manufacturing site in Vancouver, Canada. The

Vancouver site has been producing process and functional chemicals for the Pulp & Paper

segment.

On October 17, 2024, Kemira announced that the Science Based Targets Initiative (SBTi) had

validated its climate targets. Kemira has committed to a 51.23% cut in greenhouse gas

emissions from its own operations (scope 1 and 2 emissions) by 2030, relative to a 2018

baseline. This target is in line with limiting global warming to 1.5°C, currently the most

ambitious criteria for science-based climate and emissions targets. Additionally, Kemira has

committed to reducing absolute scope 3 greenhouse gas emissions from purchased goods

and services and from upstream and downstream transportation and distribution processes

by 32.5% by 2033, from a 2021 base year.

On October 9, 2024, Kemira announced that it will start change negotiations in Finland as it

plans for a new operating model and organization to be effective as of January 1, 2025. The

planned changes may lead to the reduction of a maximum of 40 employees.

On September 25, 2024, Kemira announced that it has updated its long-term financial targets

to reflect profitable growth ambitions and a structurally higher margin profile.

On September 24, 2024, Kemira announced that it will explore the broadening of the strategic

cooperation with IFF and also announced the successful completion of a market-entry scale

renewable polymer plant in Finland.

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BOARD OF DIRECTORS' REVIEW 2024

On September 23, 2024, Kemira announced that it had completed an expansion of ASA sizing

agents capacity in Nanjing, China, in response to increased market demand.

On September 18, 2024, Kemira announced that it will invest in increased coagulant capacity

in Norway, to respond to increased market demand.

On July 25, 2024,Kemira announced that it will expand sodium chlorate production capacity

in South America, to cater for growing pulp and paper market opportunities

On July 9, 2024, Kemira announced that it is expanding coagulant production capacity in

Spain, to cater for growing demand, for biogas applications and phosphorus removal in

particular.

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

had 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 that it has 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 a total of EUR 12 million of excess

capital to Kemira during Q1 2024.

Acquisitions and divestments

On September 3, 2024, Kemira announced that it has completed the acquisition to purchase

Norit’s UK reactivation business, Purton Carbons Limited.

On July 1, 2024, Kemira announced the acquisition of Norit's UK reactivation operations. This

acquisition marks the first step for Kemira in terms of expanding in to the activated carbon

market for micropollutants removal.

On February 2, 2024, Kemira announced that it had completed the divestment of its Oil &

Gas-related 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

No significant events after the review period.

Outlook for 2025

REVENUE

Kemira's revenue is expected to be between EUR 2,800 and EUR 3,200 million in 2025

(reported 2024 revenue: EUR 2,948.1 million).

OPERATIVE EBITDA

Kemira's operative EBITDA is expected to be between EUR 540 and EUR 640 million in 2025

(reported 2024 operative EBITDA: EUR 585.4 million)

ASSUMPTIONS BEHIND THE OUTLOOK

Kemira’s end-market demand (in volumes) is expected to grow slightly during the year. The

water treatment market is expected to grow in all regions. Both the pulp and the packaging

and hygiene markets are expected to start to recover. Input costs are expected to be stable

or to increase slightly. The outlook assumes no major disruptions to Kemira’s manufacturing

operations, to the supply chain or to Kemira’s energy-generating assets in Finland. Foreign

exchange rates are expected to remain at approximately current levels.

KEMIRA 2024 | FINANCIAL STATEMENTS | 23

BOARD OF DIRECTORS' REVIEW 2024

Financial targets

On September 25, 2024, Kemira announced that its Board of Directors had approved the

company’s updated, long-term financial targets. Kemira’s target for average annual organic

growth has been changed to over 4% (previously: above the market growth) and the operative

EBITDA margin target has been increased to 18–21% (previously 15–18%). Operative ROCE of

over 16% has been added as the third, new target.

Helsinki, February 10, 2025

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.

KEMIRA 2024 | FINANCIAL STATEMENTS | 24

SUSTAINABILITY STATEMENT 2024

Sustainability statement

General disclosures

BASIS OF PREPARATION FOR CONSOLIDATED SUSTAINABILITY

STATEMENT

Kemira previously disclosed non-financial information based on the Non-Financial Reporting

Directive (NFRD) and prepared the sustainability information in accordance with the Global

Reporting Initiative (GRI) disclosures. Starting from 2024, Kemira now reports according to the

Corporate Sustainability Reporting Directive (CSRD) requirements. 

As of 2024, Kemira will no longer publish a separate Sustainability Report based on the Global

Reporting Initiative (GRI). As the disclosure requirements between CSRD and GRI differ, some

previously reported KPIs and metrics required by GRI will no longer be reported in this

Sustainability Statement. Kemira has compiled a GRI index to ease the transition to CSRD

reporting. The GRI index is available on Kemira's website.

In 2023, the European Union implemented the Corporate Sustainability Reporting Directive

(CSRD) to strengthen sustainability reporting practices within the EU. The Corporate

Sustainability Reporting Directive is aligned with the EU’s objective to achieve climate

neutrality by 2050 and to elevate sustainability reporting to a level of importance equal to

financial reporting. The Corporate Sustainability Reporting Directive builds upon the

foundation of the Non-Financial Reporting Directive and also expands the scope of reporting

obligations on companies operating within the EU.

Kemira Group’s Sustainability Statement has been prepared in accordance with the European

Sustainability Reporting Standards (ESRS), as issued by the European Financial Reporting

Advisory Group (EFRAG) in 2023. The sustainability disclosures and key metrics are based on

Kemira’s Double Materiality Assessment (hereafter materiality assessment) conducted during

2023-2024. The Sustainability Statement covers Kemira's value chain from upstream to

downstream in full. Metrics, identified under topical standards, cover Kemira's own

operations, unless otherwise specified. Further details regarding Kemira's value chain, the

materiality assessment process and its findings are outlined under Business model, value

chain and strategy, and Double Materiality Assessment.   

The Sustainability Statement has been assured (limited assurance) by Ernst & Young Oy, an

independent third-party. Assurance was conducted in accordance with the international

assurance standards ISAE 3000. 

Structure and content

Kemira's Sustainability statement is structured based on the order and requirements of

ESRS. It includes General disclosure and three main topical standard sections: Environmental

information, Social information and Governance information. General disclosure includes e.g

Kemira’s materiality assessment process, threshold and identified material impacts, risks and

opportunities. Material impacts, risks and opportunities and a management summary are

presented at the beginning of each material topic section, these are then followed by

Kemira’s policies, actions, targets and metrics which are connected in each instance. More

detailed content index based on ESRS can be found end of this General disclosures section.

Scope of consolidation

The consolidated sustainability information comprises the parent company Kemira Oyj and

subsidiaries controlled by Kemira Oyj. Subsidiaries are all legal entities that Kemira Oyj has

control over, as defined in the Financial Statements (in note 6.2. The Group’s subsidiaries and

investments in associates). The Scope of consolidation is the same as for the Financial

Statements but associates are not included in the sustainability reporting.  Consolidation of

all sustainability data follows the principles above, unless otherwise specified. 

The reporting period applicable to the Sustainability Statement coincides with the financial

reporting period: January 1, 2024 to December 31, 2024. Comparisons in this statement are

made to the corresponding period of 2023, and are provided when comparisons are available.

KEMIRA 2024 | FINANCIAL STATEMENTS | 25

SUSTAINABILITY STATEMENT 2024

Sources of estimation and outcome uncertainty

When preparing the Sustainability Statement in accordance with ESRS, management is

required to make estimates and assumptions on the metrics. As a basis for calculation and

preparation of the sustainability metrics Kemira applies quality controls to ensure data

completeness. Sustainability data collection includes direct measurements, calculations and

estimations. Estimates and assumptions are continuously evaluated and are based on past

experience and an expectation of future events that may have material implications and are

considered to be reasonable under the circumstances. Sources of estimation and outcome

uncertainty are described in the reporting principles of each section.

SUSTAINABILITY GOVERNANCE

This Sustainability Statement describes sustainability governance at Kemira. Further

information about Kemira's governance bodies, their tasks and duties as well as internal

control processes and risk management can be found in the Corporate Governance

Statement which is available on Kemira's website. Kemira's new operating model came in to

force January 1st 2025 which will lead to changes in the organizational responsibilities during

2025. This Sustainability statement is based of the organizational structure of 2024.

Kemira's sustainability governance

The Board of Directors and the President & CEO are responsible for Kemira’s management

and operations, including sustainability matters, as defined in the Finnish Companies Act and

Kemira’s Articles of Association. Sustainability work is carried out throughout the organization

as sustainability is integrated into Kemira's strategy. The materiality assessment, combined

with Kemira's strategic ambitions, identified material sustainability topics, impacts, risks and

opportunities forms the basis of Kemira's Sustainability Statement's topics.

Sustainability governance chart



Board of Directors				Audit Committee

				The Personnel and Remuneration Committee

CEO and the Management Board				Sustainability Reporting Compliance Team



Sustainability Steering Team

Board of Directors and Board Committees

The Board of Directors’ key duties include establishing Kemira’s long-term goals and the

strategy for achieving these. Sustainability is a key driver of Kemira’s strategy and a

requirement for Kemira's long-term success. By approving the company's strategy and

monitoring its implementation, the Board of Directors is directly involved in setting the

sustainability agenda at Kemira. The Board of Directors is responsible for approving Kemira’s

values, the sustainability targets and the Sustainability Statement. The Board of Directors has

appointed two Committees to assist in fulfilling its responsibilities:

1. The Audit Committee assists with oversight responsibilities for the financial and

sustainability reporting process, the system of internal control, the internal and external

audit and assurance process and Kemira’s process for monitoring compliance with laws

and regulations.

2. The Personnel and Remuneration Committee assists in preparation of matters such as

compensation linked with sustainability-related key performance indicators.

Governance bodies' roles related to business conduct

The Board of Directors approves Kemira's values and the Code of Conduct which are the

foundation of Kemira's business ethics and corporate culture. The responsibilities of the Audit

Committee include, among others above, reviewing the effectiveness of the company's

system for monitoring compliance with laws and regulations; reviewing the results of the

management's investigations of any instances of noncompliance and their follow-up actions;

reviewing the findings of any examinations by regulatory agencies, and any auditor

observations; reviewing the company's process for communicating the Code of Conduct to

company personnel and for monitoring compliance therewith.

The Management Board approves the company's policies that relate to business conduct

matters. These policies are described in the G1 Business conduct section under Other

business conduct policies. The Management Board has acknowledged the importance of

synchronizing corporate culture and strategy, which will lead to improved employee

engagement, higher customer satisfaction, and ultimately increased sales and profitability. To

this end, Kemira’s Management Board has defined a set of principles, habits and behaviors

that are the basis of Kemira’s corporate culture. The Management Board members include

the heads of both business segments and the main functions of the company and they

consequently have versatile expertise in business conduct matters.

KEMIRA 2024 | FINANCIAL STATEMENTS | 26

SUSTAINABILITY STATEMENT 2024

Separate Ethics and Compliance Committee is tasked with safeguarding an impartial and

competent assessment of internally and externally submitted misconduct reports alleging a

potential violation of laws, the Code of Conduct or the company's policies. The Compliance

Committee reports periodically to the Audit Committee. The members of the Ethics and

Compliance Committee have expertise in the areas of legal compliance, business ethics,

conducting investigations and human resources leadership.

Composition and diversity of the Board of Directors

The Annual General Meeting (AGM) elects the Chair, Vice Chair and other members of the

Board of Directors. In accordance with the Articles of Association, the Board of Directors

comprises 5–10 members. On March 20, 2024, the Annual General Meeting elected eight

members to the Board of Directors. The AGM re-elected Tina Sejersgård Fanø, Werner

Fuhrmann, Matti Kähkönen, Timo Lappalainen, Fernanda Lopes Larsen (resigned as of July 31,

2024), Annika Paasikivi, Kristian Pullola and Mikael Staffas to the Board of Directors. Matti

Kähkönen was elected the Board’s Chair and Annika Paasikivi was elected the Vice Chair.

Company's Group General Counsel Jukka Hakkila acts as the Secretary of the Board of

Directors.

The Board of Directors has adopted the following principles and targets concerning the

diversity of the Board of Directors. When designing the composition of the Board of Directors,

the Nomination Board of the company assesses the Board's composition from the viewpoint

of the company’s current and future business needs, while taking into account the diversity of

the Board. The diversity of the Board of Directors will be assessed from various angles.

Kemira's Board of Directors shall have sufficient and complementary experience and

expertise in the key industries and markets relevant to Kemira’s business. In addition, an

essential element is the personal characteristics of the members and their diversity. The

company’s aim is that the Board of Directors represent diverse expertise in different

industries and markets, diverse professional and educational backgrounds, diverse age

distribution and both genders. The objective is that both genders are represented in the

Board by at least two members. Kemira's current Board of Directors conforms to the

Company’s diversity targets. Versatile expertise from various industries and markets is

represented in the Board of Directors, as are various professional and educational

backgrounds. The Board of Directors also has access to relevant expertise concerning

sustainability and the CSRD within Kemira's organization and can give advice when needed.


Board of Directors' and Management Board's diversity, %	2024	2023
Independent members of Board of Directors	100	100
Non-executive members of Board of Directors	100	100
Board of Directors by gender
Females	29	38
Males	71	63
Management Board by gender
Females	25	25
Males	75	75

The Group’s President & CEO and the Management Board

The President & CEO is responsible for managing and developing Kemira in accordance with

the guidance given by the Board of Directors and for implementing its decisions. The

President & CEO reports regularly to the Board of Directors on financial and non-financial

matters as well as on the business environment.

The Management Board is an operative management body, responsible for maintaining the

long-term strategic development of the company. Kemira measures in the sustainability

priority areas progress through group-level key performance indicators and targets approved

by the Management Board or Board of Directors. Responsibility for individual corporate

sustainability targets is shared between the members of the Management Board.

The Sustainability Steering Team

The Sustainability Steering Team is a cross-company senior-level management team with

participants from wide ranging backgrounds, representing Kemira's relevant business units

and functions. The main task of the Sustainability Steering Team is to prepare proposals for

the Management Board on how to develop Kemira’s corporate sustainability strategy, vision

and ambition, and to steer the corporate sustainability-related programs. This includes

ensuring the implementation of sustainability strategy, in addition to frequent follow-ups and

reporting on the development to the Management Board and the Board of Directors.

KEMIRA 2024 | FINANCIAL STATEMENTS | 27

SUSTAINABILITY STATEMENT 2024


Level of expertise by Board of Directors	Matti Kähkönen	Annika Paasikivi	Tina Sejersgård Fanø	Werner Fuhrmann	Timo Lappalainen	Kristian Pullola	Mikael Staffas	Fernanda Lopes Larsen
Qualification and expertise
Board experience ¹⁾	●	●		●		●
CEO experience ²⁾	●				●		●
CFO experience ²⁾						●	●
Executive Committee experience ²⁾	●	●	●	●	●	●	●
Governance and compliance expertise ³⁾		●	●			●	●
International experience ⁴⁾
EMEA	●	●	●	●	●	●	●
Americas								●
APAC
Experience in chemical industry ⁵⁾	●		●	●	●			●
Experience in driving growth ⁶⁾	●		●	●	●	●	●	●
Experience in driving sustainability ⁶⁾	●		●			●		●
Experience in profitability improvement ⁶⁾	●	●	●	●		●	●	●
Experience in driving innovation ⁶⁾			●		●	●		●
Experience in advancing digitalization ⁶⁾			●			●		●
Additional qualification and information
Year of birth	1956	1975	1969	1953	1962	1973	1965	1974
Gender	Male	Female	Female	Male	Male	Male	Male	Female
Nationality	FIN	FIN	DEN	GER	FIN	FIN	SWE	BRA/GB
Member since	3/2021	2/2022	3/2022	5/2020	3/2013	3/2021	3/2023	3/2023-7/2024

1) The Board member has acted or is currently acting as a Chair or member of a Board (other than in Kemira) in a public listed company or a large (private) company. A company is considered large if its annual revenue is in excess on EUR 1.5 billion.

2) The Board member has acted or is currently acting as a CEO, CFO or member of an Executive Committee in a public listed company or a large (private) company (as defined above)

3) The Board member has acted in a leading position in governance, audit or compliance for at least five years.

4) The Board member has acted in a management position within the specific region for at least three years

5) The Board member has at least three years of experience within the past ten years from chemical industry, as part of a Board or an executive committee in a listed or large (private) company (as defined above)

6) The Board member has at least three years of experience from driving the respected areas strategy successfully, as part of a Board or an executive committee or has acted in the Management Board in a respected position in a listed or large

(private) company (as defined above)

KEMIRA 2024 | FINANCIAL STATEMENTS | 28

SUSTAINABILITY STATEMENT 2024

The Sustainability Reporting Compliance Team

The Sustainability Reporting Compliance Team is a separate team focusing on sustainability

reporting and compliance, which is formed of senior-level management and sustainability

experts from different functions. It is responsible for leading the comprehensive alignment

and the implementation of the reporting required by the Corporate Sustainability Reporting

Directive, reporting to the Management Board and forward to the Audit Committee.

Kemira's impacts, risks and opportunities management

Kemira's Board of Directors oversees the implementation of strategy and regulation, including

impacts, risks and opportunities management in sustainability matters through the

materiality assessment. The Management Board is responsible for implementing actions to

manage impacts, risks and opportunities as defined in the materiality assessment,

coordinated by The Sustainability Reporting Compliance Team and conducted by subject

matter experts in the business segments and functions. The progress of the impacts, risks

and opportunities management is reported to the Sustainability Steering Team and the

Management Board, and from there onwards to the Audit Committee. The Sustainability

Steering Team reviews the results of the materiality assessment and shares guidance

implementation of the sustainability programs, governance and targets for the Board of

Directors and the Management Board. The Sustainability Steering Team is lead by Kemira's

EVP of Strategy and it has overall responsibility for impacts, risks and opportunities

management. Kemira's CFO and the Global Finance & Accounting function are accountable

for that the Sustainability Statement is prepared based on the requirements and regulations.

Kemira's Corporate Sustainability function together with the subject matter experts in

individual business segments and functions are responsible for sustainability reporting.

The Board of Directors oversees the highest level of the implementation of the European

Sustainability Reporting Standards and new reporting practices. The implementation of the

European Sustainability Reporting Standards and other sustainability topics were presented

in all Board of Directors meetings by Kemira's management to the members of the Board in

2023 and 2024:

• Sustainability strategy and targets

• The Sustainability program and policy updates

• The Sustainability report 2023 review

• The Modern slavery statement

• Sustainability reporting developments related to EU Taxonomy and the implementation of

the Corporate Sustainability Reporting Directive

• Kemira's safety performance and other sustainability related key figures

• The progress of the materiality assessment process and results, material impacts, risks

and opportunities

The Audit Committee complies with Kemira's sustainability reporting in all meetings. The main

sustainability topics discussed by the Audit Committee and prepared by Kemira's

management in 2023 and 2024:

• Sustainability reporting developments related to EU taxonomy and the implementation of

the Corporate Sustainability Reporting Directive (CSRD)

• The Corporate Sustainability Reporting Directive and the European Sustainability Reporting

Standard implementation plan, including a timeline, gap analysis and roles and

responsibilities

• The Financial Supervisory Authority's inquiry on sustainability reporting implementation

• The progress of the materiality assessment process and results, material impacts, risks

and opportunities

• Risk related to the implementation of new sustainability reporting practices

• A validation review of the Science Based Target initiative

• The Sustainability Statement 2024 draft

Risk management over sustainability reporting

Kemira’s Board of Directors defines the main principles of risk management and approves the

Group’s Risk Management Policy. The business segments and functions are responsible for

identifying, assessing and managing risks involved in their areas of operation. The Group’s

Risk Management function coordinates and supports risk management. This is a continuous

process which is based on an iterative and collaborative methodology. The Group Risk

Management function is also responsible for the group level risk overview, based on input

from the business segments and functions and is further responsible for ensuring that risks

are reported to and reviewed by the Management Board and the Board of Directors. The

Internal Audit function is responsible for monitoring and evaluating the effectiveness of

Kemira’s risk management system.

KEMIRA 2024 | FINANCIAL STATEMENTS | 29

SUSTAINABILITY STATEMENT 2024

Kemira Oyj’s risk management is based on the Finnish Corporate Governance Code, the

Kemira Code of Conduct and on Kemira's values. The principles of Kemira’s risk management

are also in compliance with international risk management frameworks and standards such as

ISO 31000 (Risk Management – Principles and Guidelines).

In accordance with its Enterprise Risk Management (ERM) process, Kemira conducts

systematic and proactive assessments and mitigation of identified risks. Risks are grouped

under various risk categories, with clearly defined responsibilities. The objective of risk

management is to identify risks and opportunities in a proactive manner, to help ensure

Kemira’s long-term strategic development and to achieve Kemira’s strategic and operational

targets by supporting decision making by taking uncertainty and its effects into account.

Sustainability reporting risks are managed through Kemira's Integrated Management System,

by precisely determined reporting processes and stringent internal controls. Kemira’s internal

control system covers all Group operations, including sustainability reporting. The internal

control activities are carried out at all organizational levels, as a part of the Group’s daily

operations.

Sustainability reporting and controls

The sustainability reporting complies with Kemira’s reporting principles and processes for

annual financial reporting, risk management and internal controls. Kemira regularly assesses

risks and related controls over the sustainability reporting processes, as part of Kemira’s

Enterprise Risk Management process. Internal process controls are in place for the reporting

of sustainability data. Potential risks and uncertainties related to sustainability reporting are

regularly addressed by the Audit Committee. Sustainability reporting compliance is assured

by external auditors, by limited assurance .

Risks identified in the sustainability reporting relate to the completeness of qualitative and

quantitative information as well as to the timing of reporting. In order to ensure that the

reported information is accurate and timely, Kemira has implemented reporting systems and

processes and has established internal controls. These controls include implementing a

reporting governance structure and specifying the roles related to sustainability reporting

within the corporate functions and business segments.

Kemira maintains risk management and internal control systems to ensure the effectiveness

and efficiency of its operations, including the reliability of financial, non-financial and

operational reporting and compliance with the applicable regulations, policies and practices.

More details on this and on the governance model for internal controls can be found in the

Corporate Governance Statement.

Integration of sustainability-related performance in incentive schemes

To ensure that sustainability transformation remains a high priority and drives profitable

growth, Kemira has integrated key sustainability priorities into its incentive programs. Kemira

provides performance-driven remuneration packages. Key sustainability priorities are

reflected in the Group's incentive programs and are aligned with Kemira’s sustainable and

profitable growth strategy. Kemira has both long- and short-term incentive plans, with the

long-term incentive plans targeted for selected individuals of senior management. Safety,

with a 5% weight, has been a key performance indicator of the short-term incentive plan for

several years and the short-term incentive program for 2024 includes a new target for

strategic revenue growth.

The aim of the long-term incentive plan is to align the objectives of the shareholders and the

persons participating in the plan, to increase the value of Kemira, to commit the participants

to Kemira and to offer them a competitive reward plan. In addition to financial targets,

sustainability targets are incorporated in the two latest performance periods (2023–2025 and

2024–2026) of the long-term incentive program. Revenue Growth of Renewable Solutions and

the climate target for Scope 1 and 2 have been included in the long-term incentive plan since

the beginning of 2023, both with a weight of 10%. The climate target reflects Kemira’s

commitment to annual reduction rate, in line with the Science Based Targets Initiative (SBTi)

commitment.The Board of Directors defines and approves the main principles for the

incentive schemes within Kemira, its values, sustainability targets and the Code of Conduct.

More details on remuneration can be found in Kemira's Remuneration Report.

KEMIRA 2024 | FINANCIAL STATEMENTS | 30

SUSTAINABILITY STATEMENT 2024

Due diligence

Kemira believes that acting ethically and responsibly is not only the correct thing to do but

that it also benefits our business and stakeholders. Kemira works in accordance with the

United Nations Guiding Principles, which require companies to conduct due diligence to

protect and respect human rights and remedy the victims of business-related abuses.

Kemira's Sustainability statement is structured according to our due diligence processes.

Further information on Kemira's due diligence processes in the topical standard sections is

shown in the table below.


Steps of due diligence	In the sustainability statement
Assess impacts and risks	Material impacts, risks and opportunities under General disclosure
Integrate and act to address impacts and risks	Action related to topical standards
Track the effectiveness of the efforts	Targets related to topical standards
Communicate impacts and risks	Material impacts, risks and opportunities under topical standards
Stakeholder engagement in due diligence processes	Policies related to topical standards Stakeholder engagement in General disclosure

BUSINESS MODEL, VALUE CHAIN AND STRATEGY

Kemira provides sustainable chemical solutions for water-intensive industries. Kemira has two

business areas: Pulp & Paper and Industry & Water. Kemira had operations in 38 countries and

had 58 manufacturing facilities at the end of 2024. In Pulp & Paper, Kemira provides chemical

solutions for bleaching, packaging, tissue and printing and writing products. The main product

categories in Pulp & Paper are bleaching chemicals, sizing and strength chemicals, various

process chemicals and polymers. In Industry & Water, Kemira offers chemical solutions for

municipal and industrial water treatment for both drinking water and waste water treatment.

The main product categories in Industry & Water are coagulants and polymers. Kemira has

three regional business areas: EMEA, APAC and the Americas. Kemira has a new operating

model, effective from January 1, 2025 onwards. The new operating model has three business

units: Water Solutions, Packaging and Hygiene Solutions and Fiber Essentials. The new

operating model will increase customer centricity as well as speed and agility. Kemira will

assess the impact of the new operating model on sustainability matters in 2025.

More information on Kemira's segments' and regions' financial performance (ESRS2 SMB-1,

40 (b, c), changes to our operations and the number of personnel by geographical area (ESRS2

SMB-1, 40 (a) i-iii) can be found in the Financial Statements (Board of Directors' Review,

Financial performance 2024 and Segments, in notes 2.1. Segment information, 2.2 Other

operating income and expenses and 3.6 Business combinations). Profitable sustainable

growth is Kemira’s strategic objective. Sustainability is integrated into Kemira’s strategy and

long-term success as Kemira’s customers are increasingly asking for sustainable solutions.

Kemira provides its customers with solutions that help them to improve the resource

efficiency of their operations. In 2024, 58% of Kemira’s revenue came from products that

improve customer resource efficiency, e.g. energy and water efficiency and reduced waste

generation. Kemira's customers focus increasingly on their products' end-of-life properties

such as recyclability and biodegradability. As a result, renewable solutions remain a strategic

priority for Kemira. Kemira’s renewable solutions strategy is covered in more detail in the

Annual Review. Kemira aims to expand its renewable solutions, to reach EUR 500 million in

revenue by the end of 2030.

One of the key aims of Kemira’s strategy is to become the leading provider of sustainable

chemical solution for water-intensive industries. This will be achieved by building on our

product portfolio, increasing our focus on water treatment and improving our own use of

renewable and recycled raw materials. Kemira continues to innovate and to look for new

growth from sustainable products and markets while continuously improving its own

processes.

KEMIRA 2024 | FINANCIAL STATEMENTS | 31

SUSTAINABILITY STATEMENT 2024

Kemira's value chain

Kemira has a global raw material supply chain. Kemira’s products are dependent on refined

mineral, fossil, renewable and recycled raw material feedstocks. Kemira’s position in the value

chain is utilizing primary chemicals and further refining those into specialty chemicals.

Kemira's offering in both business segments, in Pulp & Paper and in Industry & Water, focuses

on:

• products and services which enhance customers' process efficiency and lead to lower

energy, water and virgin raw material consumption

• new renewable carbon-based chemistry concepts to lower the carbon footprint in

customer end products

• chemistry concepts which enhance the quality of the end products

• digital services to optimize the customers' processes

Based on the materiality assessment outcomes, Kemira’s sustainability priorities focus on the

most material impacts, risks and opportunities. The materiality assessment considers

external and internal stakeholders’ expectations, covers the full value chain from upstream to

downstream and also considers varying timeframes, from short-term to long-term.

Interests and views of stakeholders

Kemira regularly reviews stakeholders' expectations and potential concerns. Our approach to

stakeholder engagement includes activities ranging from information sharing to active

dialogue and collaboration on issues of mutual interest. The feedback and information

gathered from these activities are integrated into Kemira's operational development and

decision-making. Stakeholder feedback is considered in setting company strategy. The views

of stakeholders were used in the materiality assessment carried out in 2024, which is

described in more detail in the Material impacts, risks and opportunities section which

follows.

KEMIRA 2024 | FINANCIAL STATEMENTS | 32

SUSTAINABILITY STATEMENT 2024

STAKEHOLDER ENGAGEMENT


Stakeholders	Purpose of engagement	How engagement is organized	Outcomes and impacts on operations, business model and strategy
Own workforce	• Direct impact on value creation, operational and sustainability performance • Contribution to a sustainable workplace and working conditions (Health & Safety) • Labor and human rights • Diversity, equity and inclusion (DEI)	• Performance management - Personal development dialogues • Co-operation with employee representatives • Ethics and Compliance hotline and training • Local well-being programs • Surveys and workplace assessment	• Strategy communication • Performance and competence development • Rewards and recognition • Communication from management • Global Initiatives and campaigns • Certified Management System and Internal policy updates
Shareholders and lenders	• Value creation through dividends and interest payments • Expectations for return on investment, good corporate governance practices and sustainability performance (Climate change mitigation and emissions reduction across the value chain) • Human rights and diversity • Attracting responsible investors • Enhancing transparency	• Regulatory financial communications: financial reporting and stock exchange communication • Roadshows, conference calls and one-to-one meetings • ESG ratings • Capital Market days • Annual General Meeting • Materiality assessment	• Transparent and regular reporting and verified disclosure • Participation in CDP Climate Change and CDP Water Security questionnaires • Responding to rating company and investor questionnaires • ESG rating improvement plans • Communication on sustainability practices
Customers	• Revenue creation • Providing sustainable solutions • Enabling customers to achieve their targets • Building trust	• Direct customer contacts and customer survey • Customer webinars, events and newsletters • Business partner due diligence • Materiality assessment and sustainability assessments	• Sustainable Product Development and sustainability performance data, like Product Carbon Footprints. Product and process certification • Customer satisfaction (Net Promoter Score)
Suppliers	• Suppliers’ sustainability performance impact on Kemira’s business - decarbonization of our value chain • Promoting responsible sourcing and a sustainable value chain - Evaluation of raw material product carbon footprints and emission reduction road map (Climate change, Biodiversity, Circular economy) • Compliance with our Code of Conduct • Protection of human and labour rights of workers	• Active dialogue with suppliers • Supplier performance evaluations • Supplier due diligence • Materiality assessment • Compliance and Ethics channel	• Supplier sustainability assessments and audits • Sourcing sustainable raw materials • Suppliers’ commitment to the Code of Conduct for Business Partners • Supplier improvement plans • Harmonized health & safety management system for the company's own and service providers' employees
Affected communities	• Value creation through tax payments, education and employment • Safety and environmental performance • Building trust and community support • Addressing community concerns, questions and feedback	• Dialogue and collaboration to address community concerns	• EHSQ risk assessments • Open dialogue with communities • Support of local projects
Regulatory bodies	• Capability to influence political decisions on legislation with an impact on our operations and business • Ensuring regulatory compliance • Promoting sustainable performance • Addressing climate-related transition risks and opportunities	• Subject-specific dialogue with regulatory bodies • Answering public consultations and surveys • Bilateral meetings • Compliance and Ethics channel • Materiality assessment	• Dialogue on EU directive proposals • Business model and strategy alignment • Value creation and risk mitigation from compliance • Resource efficient value chain
Trade associations	• Developing industry standards on sustainability • Enabling the industry to engage policymakers • Understanding views of value chain workers' representatives	• Memberships in industrial trade associations • Joint initiatives and programs • Inputs into strategic directions • Workshops and knowledge sharing • Bilateral meetings	• Participation in European Chemical Industry Council (CEFIC) • Participation in the Chemical Industry Federation of Finland • Alignment on sustainability practices and measurement standards • Design of value chain workers initiatives

KEMIRA 2024 | FINANCIAL STATEMENTS | 33

SUSTAINABILITY STATEMENT 2024

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES

Sustainability is embedded into all operations , including Strategy and Enterprise Risk

Management (ERM). From the Enterprise Risk Management perspective, integrating

sustainability is crucial to mitigating risks and to ensuring long-term resilience. The materiality

assessment helps to prioritize the most important risks in the annual review process.

Kemira has systematic procedures in place to evaluate and address the environmental, social

and governance material impacts of its own operations and business relationships. Kemira's

sustainability work is based on day-to-day responsible practices in all our operations. Our

corporate sustainability priorities are based on the most material impacts across our

business; on the increasing expectations of our customers, investors and other stakeholders

and on our commitment to the Kemira Code of Conduct and internationally agreed

sustainability principles.

Double materiality assessment

The materiality assessment was based on Kemira's strategic priorities and the management's

view on Kemira's most important sustainability matters. Kemira’s sustainability-related

impacts, risks and opportunities were identified and prioritized in a materiality assessment.

Kemira’s first materiality assessment based on the European Sustainability Reporting

Standard was conducted in 2023. It covered Kemira's entire value chain, including own

activities as well as activities in the upstream and downstream value chain. The initial results

were communicated in the 2023 Sustainability report. The materiality assessment was revised

in 2024 to reflect business changes, mainly the divestment of the Oil & Gas business. The

materiality scoring was also reviewed and realigned.

The materiality assessment followed General disclosure requirements and the materiality

scoring was linked to Kemira’s existing internal Enterprise Risk Management scale, both in

impact materiality and financial materiality assessments.

Kemira’s materiality assessment was a cross-functional work, covering the view of all critical

Kemira operations and stakeholders. It brought together expertise from both the financial and

sustainability perspectives. Both business segments were represented throughout the

assessment. The global approach and engagement of Kemira’s higher management and a

wide range of internal subject matter experts ensured that high-risk factors were covered in

the materiality assessment. All the participants paid attention to the company’s impacts on

the environment, society, employees and other stakeholders, as well as to the qualitative and

financial risks and opportunities for the company’s business related to sustainability matters.

Kemira defined six phases for conducting the materiality assessment. The process started

with the scoping of impacts, risks and opportunities which were finally validated by Kemira’s

stakeholders and management. The phases in the materiality assessment were:

1. Scoping of impacts, risk and opportunities

The identification of impacts, risks and opportunities started with a comprehensive review

of Kemira’s internal documents. This documentation review was complemented with a

benchmark study of typical industry-related impacts, risks and opportunities.

2. Engagement of stakeholders to identify impacts, risks and opportunities

For the interviews, key higher management representatives and subject matter experts

were identified within Kemira’s organization. Stakeholder interviews also included Kemira’s

customers and investors. The two first phases focused on collecting a list of potential

impacts, risks and opportunities for further assessment.

3. Assessment of identified individual impacts, risks and opportunities

Based on the material collected in the first two phases, the impacts, risks and

opportunities were reviewed and scored in internal workshops. Separate workshops were

held for impact materiality and financial materiality. Impact materiality was scored for

severity and likelihood and both positive and negative impacts were scored. Financial

materiality was scored for both the scale of potential impacts and their likelihood,

considering both risks and opportunities. As a result of the workshops, a comprehensive

materiality assessment covering environment, social and governance impacts, risks and

opportunities was achieved.

4. Revision of materiality assessment

The materiality assessment was revised and validated several times during the process.

The final revision was conducted in 2024. In the latest revision, there were no major

changes in the scope of materiality compared to the initial results communicated in the

2023 reporting.

KEMIRA 2024 | FINANCIAL STATEMENTS | 34

SUSTAINABILITY STATEMENT 2024

5. Prioritization of impacts, risks and opportunities

The materiality is two-dimensional, taking both impact materiality and financial materiality

into account in the prioritization. The prioritization of sustainability related matters is

determined based on the original scoring of the impacts, risks and opportunities

assessment and the set threshold.

6. Management review and validation

The materiality assessment and the threshold was reviewed and validated with the

relevant Kemira governance bodies, the Board of Directors and the Audit Committee.

Based on the materiality assessment conducted, we identified positive and negative impacts

on the environment, social and governance topics as well as sustainability-related risks and

opportunities that are exposed to financial materiality. The outcome of the materiality

assessment is summarized in the assessment scale. The most significant sustainability topics

for Kemira in the 2024 reporting period were Climate change, Resource use and the circular

economy and Water and marine resources. The result follows Kemira's strategy and

anticipated future scenarios. The materiality assessment was conducted on sub-topic level,

but all the sub-sub topics were considered as part of the process. The sub-topics' financial

materiality were classified as moderate, high or very high and the impact materiality was

classified as possible, likely or very likely. Some of the standard topics are more widely

represented in the Sustainability statement since for some topics all of the sub-topics were

defined to be in the scope of materiality, as presented in the Material sustainability topics

table. Two social standard topics, Affected communities and Consumers and end-users were

found not material, which underlines Kemira’s position in the value chain and Kemira’s

business model.

The materiality assessment is a dynamic process subject to changes and it is reviewed at

least annually. It is also planned for the materiality assessment to be integrated into Kemira’s

Strategy and Enterprise Risk Management processes.

Assessment scale for impacts, risks and opportunities

Impact materiality

Very likely

Climate

change (E1)

Water and

marine

resources (E3)

Resource use

& circular

economy (E5)

Likely

Biodiversity &

ecosystem

(E4)

Own

workforce (S1)

Workers in the

value chain

(S2)

Pollution (E2)

Possible

Business

conduct (G1)

Unlikely

Non-material topics:

Affected communities (S3)

Consumers & end-users (S4)

Very unlikely

Very low

Low

Moderate

High

Very high

Financial materiality

KEMIRA 2024 | FINANCIAL STATEMENTS | 35

SUSTAINABILITY STATEMENT 2024

Results of material impact, risks and opportunities for sustainability topics


Standard	Material topics and sub-topics	Position in the value chain			Material impacts	Financial materiality	Number of impacts risks and opportunities
Standard	Material topics and sub-topics	Upstream	Own operations	Down- stream	Material impacts	Financial materiality	Identified	Material
E - Environment	E1 Climate change						30	9
	Energy		●	↘	● ●	▲ △		4
	Climate change adaptation		●			△		1
	Climate change mitigation	↗	●	↘	● ●	□ △		4
	E2 Pollution						19	4
	Pollution of air, water, soil	↗	●		●	△		3
	Substances of concern or very high concern	↗	●	↘	○			1
	E3 Water and Marine resources						18	6
	Water	↗	●	↘	● ●	□ △		6
	E4 Biodiversity and ecosystems						16	2
	Direct impact drivers of biodiversity loss	↗		↘	● ●			2
	E5 Resource use and circular economy						28	11
	Resource inflows including resource use	↗	●	↘	● ●	■		3
	Resource outflows related to products and services		●	↘	●	■		5
	Waste	↗	●	↘	●			3
S - Social	S1 Own workforce						28	7
	Working conditions		●		● ●	□		3
	Equal treatment and opportunities for all		●		○	▲		3
	Other work-related rights		●		○			1
	S2 Workers in the value chain						15	4
	Working conditions	↗			● ○			3
	Other work-related rights	↗			○			1
G - Governance	G1 Business conduct						30	7
	Corporate culture		●	↘	● ○	□ △		5
	Political engagement and lobbying activities		●			□		1
	Corruption and bribery	↗	●	↘	○			1
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

KEMIRA 2024 | FINANCIAL STATEMENTS | 36

SUSTAINABILITY STATEMENT 2024

Identification of material impacts, risks and opportunities for sustainability topics

Kemira's business model, strategy, policies and ways of working were part of identifying

material impact risks and opportunities for environmental, social and governance topics.

Based on the materiality assessment conducted, a total number of 212 positive and negative

impacts, risks and opportunities were identified and 50 were found to be material.

Environment information

Significant environmental aspects and impacts on own operations at Kemira's group-level are

identified annually, based on collected environmental data. On site level, identification of

significant environmental impacts, risks and opportunities are included in the sites'

Environment, Health, Safety and Quality (EHSQ) Risk Assessment process that is based on

Kemira's EHSQ Assessment procedure. Affected communities are included in site-level risk

assessments as a stakeholder group that needs to be considered. Site-specific EHSQ Risk

Assessments are internally updated and audited regularly by Kemira's EHSQ function and

externally by accredited ISO 14001 auditors. Results are reported in Kemira's sustainability

reporting system.

Environmental impacts and risks are initially assessed as part of the environmental permitting

process of the sites and the Environmental Impacts Assessments (EIA) at the sites where the

assessment is required. Both the environmental permitting process and EIA include

consultation with affected communities. Communities affected by environmental permitting

have the opportunity to appeal on the permit and the EIA process includes public consultation

of affected communities. Results of the site-level assessment of impacts, risks and

opportunities have been considered in the risk assessment at a high level, including Global

Environmental Impacts and Aspects assessment, the Enterprise Risk Management Process

and materiality assessment.

Actual positive and negative impacts and risks as well as potential risks and opportunities

were identified in the Climate change topics. Together with materiality assessment and

Kemira's climate risk scenario, Kemira has developed a climate risk matrix to evaluate the

materiality of these climate-related impacts, risks and opportunities and to establish a

methodology for risk assessment. The materiality assessment identified various climate-

related impacts, risks and opportunities, including transition and physical risks, and

opportunities for enhancing efficiency, adopting new technologies and accessing new

markets through sustainable innovations.

From a business case perspective the most significant climate risk to Kemira's own

operations is related to our energy-intensive manufacturing operations. These operations

face potential regulatory restrictions, fluctuations in supply and demand, volatility in energy

prices and challenges in securing renewable energy. While Kemira has implemented several

mitigation actions to address these risks, we recognize the need for further investigation and

improvement. Kemira is committed to further develop its methodology to better capture our

exposure to climate risk and to explore additional ways to integrate climate change

considerations into our existing processes. This aims to reduce uncertainties and to enhance

our resilience to climate-related challenges. Information on the management of climate

related impacts, risks and opportunities can be found in more detail under Identification and

management of material impacts, risks and opportunities in the E1 Climate change section.

Actual negative impacts and potential risks for Pollution of air, water and soil and potential

negative impacts for Substances of concern or very high concern were identified as a result

of the materiality assessment. Pollution through potential spills and accidental chemical

releases as well as actual and potential environmental liabilities related to soil or closed

activities was identified as material aspects. Pollution of air and water through air emissions

and water effluent from sites which is related to normal operations have not been identified

as a material aspect. Substances of concern or very high concern may cause negative impacts

on people and the environment.

Actual positive and negative impacts and potential opportunities and risks were identified for

Water. High water consumption in own operations was identified as a material impact. Marine

resources is not considered a material topic for Kemira. Dependency on marine resources is

limited to the withdrawal of sea water for use as cooling water at one manufacturing site with

a single-pass cooling water system and the discharge of a limited amount of process water

with no treatment requirement, such as cooling tower blowdown to sea at two sites.

Based on an internal study, supported by an external partner, on biodiversity impacts and

dependencies in 2024, high water consumption and discharge was identified as a material

negative impact part of both the upstream and downstream value chain. Based on the study,

a roadmap has been created and Kemira will report in more detail on the identification and

assessment of material impacts, risks and opportunities in the upcoming years.

Using location based water stress and water scarcity data and the results of site level EHSQ

Assessments, sites with potential risk are selected for a more detailed water risk assessment

KEMIRA 2024 | FINANCIAL STATEMENTS | 37

SUSTAINABILITY STATEMENT 2024

which includes site interviews and operational risk assessments using the WWF Water Risk

Filter. Site-specific substantive freshwater use and consumption risks were not identified

within the timeframe of 3 to 6 years into the future in relation to water stress and water

scarcity.

Water stress and water scarcity risks in own operations are assessed by the EHSQ function

annually, using World Resources Institute’s (WRI) Aqueduct tool to identify sites in water

stress areas and the World Wide Foundation (WWF) Water Risk Filter for water scarcity risk in

different future scenarios. Most of Kemira's water consumption takes place at sites that are

not located within water stress areas. Kemira has 12 sites (21% of the sites) located within

water stress areas. In “high” or “extremely high” water stress areas more than 40% of

available water is used by industry, households and agriculture.

Actual positive and negative impacts were identified from the upstream and downstream

value chain for Direct impact drivers of biodiversity loss in Biodiversity and ecosystems.

Kemira did not identify actual or potential material impacts, risks or opportunities on

biodiversity and ecosystems at own site locations. Material negative impacts with regards to

land degradation, desertification or soil sealing were also not identified.

Potential and actual material impacts and opportunities were identified in the whole value

chain in resource use and waste. The main information sources in the materiality assessment

on resource use and the circular economy were industry specific future roadmap studies,

benchmarks of sustainability leaders in the chemical industry and internal and external

stakeholder interviews. Stakeholders were chosen for the materiality assessment based on

stakeholder engagement analysis. The focus in the selection was on the most influential

stakeholders from a resource use and circular economy point of view. Kemira is planning to

consult a broader set of stakeholders over the upcoming years, to complement the

materiality assessment with the views of e.g. affected communities.

Social information

Potential and actual material impacts, risks and opportunities were identified in Own

workforce along with actual and potential negative impacts in the Workers in the value chain.

The analysis of social related impact, risk and opportunity was based on internal interviews

and materials as well as on Kemira's latest Human Rights Impact Assessment framework

which was created in cooperation with an external partner. The methodology of the Human

rights Impact Assessment was based on the United Nations Guiding Principles on Business

and Human Rights and the OECD Due Diligence Guidance.

The identified material impacts, risks and opportunities were included in a more

comprehensive analysis (Human Rights Due Diligence Risk Assessment) which was carried out

together with Kemira's key subject matter experts. The analysis was built on the identification

and assessment of affected stakeholders and a consideration of the high-risk factors related

to Kemira’s business model and strategy. The most significant high risk factors were assessed

to be the nature of work for the different value chain worker groups who are likely to be

impacted, geographical location and chemical properties and their usage volumes. Within

each worker group particularly vulnerable workers were identified. The identification was

done by assessing the potential negative impact against the nature of the work and the

environment in which the actual work is conducted.

Governance information

Actual positive impacts and potential negative impacts, risks and opportunities were

identified in Corporate conduct, potential opportunities in Political engagement and

lobbying activities, and potential negative impacts in Corruption and bribery. When carrying

out the materiality assessment for these topics, the following criteria were taken into

consideration: industry sector, nature of operations, geographical scope of operations and

the typical structure of business transactions.

KEMIRA 2024 | FINANCIAL STATEMENTS | 38

SUSTAINABILITY STATEMENT 2024

ESRS Content Index


ESRS	Disclosure Requirement		Page	ESRS	Disclosure Requirement		Page
General Disclosure				E2 Pollution
ESRS 2	BP-1	General basis for preparation of sustainability statements	24	ESRS E2	E2-1	Policies related to pollution	56
ESRS 2	BP-2	Disclosures in relation to specific circumstances	24	ESRS E2	E2-2	Actions and resources related to pollution	57
ESRS 2	GOV-1	The role of administrative, management and supervisory bodies	25	ESRS E2	E2-3	Targets related to pollution	58
ESRS 2	GOV-2	Information provided to, and sustainability matters addressed by the		ESRS E2	E2-4	Pollution of air, water and soil	58
		company’s administrative, management and supervisory bodies	24	ESRS E2	E2-5	Substances of concern and substances of very high concern	59
ESRS 2	GOV-3	Integration of sustainability-related performance in incentive schemes	24	E3 Water and marine resources
ESRS 2	GOV-4	Statement on due diligence	24	ESRS E3	E3-1	Policies related to water and marine resources	61
ESRS 2	GOV-5	Risk management and internal controls over sustainability reporting	28	ESRS E3	E3-2	Actions and resources related to water and marine resources	62
ESRS 2	SBM-1	Strategy, business model and value chain	28	ESRS E3	E3-3	Targets related to water and marine resources	64
ESRS 2	SBM-2	Interests and views of stakeholders	32	ESRS E3	E3-4	Water consumption	65
ESRS 2	SBM-3	Material impacts, risks and opportunities and their interaction with		E4 Biodiversity and ecosystems
		strategy and business model	33	ESRS E4	E4-1	Transition plan and consideration of biodiversity and ecosystems in
ESRS 2	IRO-1	Description of the processes to identify and assess material impacts,				strategy and business model	67
		risks and opportunities	33	ESRS 2	SBM3-E4	Material impacts, risks and opportunities and their interaction with
ESRS 2	IRO-2	Requirements in ESRS covered by the undertaking’s sustainability				strategy and business model	67
		statement	38	ESRS E4	E4-2	Policies related to biodiversity and ecosystems	67
Environmental information				ESRS E4	E4-3	Actions and resources related to biodiversity and ecosystems	68
ESRS E		Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (EU Taxonomy)	40	ESRS E4	E4-4	Targets related to biodiversity and ecosystems	68
E1 Climate change				ESRS E4	E4-4	Impact metrics related to biodiversity and ecosystems change	68
ESRS E1	E1-1	Transition plan for climate change mitigation	46	E5 Resource use and circular economy
ESRS 2	SBM3-E1	Material impacts, risks and opportunities and their interaction with		ESRS E5	E5-1	Policies related to resource use and circular economy	71
		strategy and business model	46	ESRS E5	E5-2	Actions and resources related to resource use and circular economy	72
ESRS E1	E1-2	Policies related to climate change mitigation and adaptation	47	ESRS E5	E5-3	Targets related to resource use and circular economy	73
ESRS E1	E1-3	Actions and resources in relation to climate change policies	47	ESRS E5	E5-4	Resource inflows	74
ESRS E1	E1-4	Targets related to climate change mitigation and adaptation	46	ESRS E5	E5-5	Resource outflows	74
ESRS E1	E1-5	Energy consumption and mix	49	ESRS E5	E5-5	Resource outflows	74
ESRS E1	E1-6	Gross Scopes 1, 2, 3 and Total GHG emissions	51
ESRS E1	E1-7	GHG removals and GHG mitigation projects financed through carbon credits	53
ESRS E1	E1-8	Internal carbon pricing	53

KEMIRA 2024 | FINANCIAL STATEMENTS | 39

SUSTAINABILITY STATEMENT 2024


ESRS	Disclosure Requirement		Page	ESRS	Disclosure Requirement		Page
Social information				S2 Workers in the value chain
S1 Own workforce				ESRS 2	SBM2-S2	Interests and views of stakeholders	32
ESRS 2	SBM2-S1	Interests and views of stakeholders	32	ESRS S2	SBM3-S2	Material impacts, risks and opportunities and their interaction with
ESRS 2	SBM3-S1	Material impacts, risks and opportunities and their interaction with	78			strategy and business model	87
		strategy and business model		ESRS S2	S2-1	Policies related to value chain workers	88
ESRS S1	S1-1	Policies related to own workforce	78	ESRS S2	S2-2	Processes for engaging with value chain workers about impacts	89
ESRS S1	S1-2	Processes for engaging with own workers and workers’		ESRS S2	S2-3	Processes to remediate negative impacts and channels for value chain
		representatives about impacts	79			workers to raise concerns	89
ESRS S1	S1-3	Processes to remediate negative impacts and channels for own		ESRS S2	S2-4	Taking action on material impacts on value chain workers, and
		workers to raise concerns	80			approaches to managing material risks and pursuing material
ESRS S1	S1-4	Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities				opportunities related to value chain workers, and effectiveness of those actions	90
		related to own workforce, and effectiveness of those actions	81	ESRS S2	S2-5	Targets related to managing material negative impacts, advancing
ESRS S1	S1-5	Targets related to managing material negative impacts, advancing				positive impacts, and managing material risks and opportunities	91
		positive impacts, and managing material risks and opportunities	81	Governance information
ESRS S1	S1-6	Characteristics of the undertaking’s employees	81	G1 Business Conduct
ESRS S1	S1-7	Characteristics of non-employee workers in the undertaking’s own		ESRS G1	G1-1	Corporate culture and business conduct policies	93
		workforce	82	ESRS G1	G1-3	Prevention and detection of corruption and bribery	97
ESRS S1	S1-8	Collective bargaining coverage and social dialogue	82	ESRS G1	G1-4	Confirmed incidents of corruption or bribery	97
ESRS S1	S1-9	Diversity metrics	84	ESRS G1	G1-5	Political influence and lobbying activities	98
ESRS S1	S1-10	Adequate wages	83
ESRS S1	S1-13	Training and skills development metrics	84
ESRS S1	S1-14	Health and safety metrics	83
ESRS S1	S1-16	Compensation metrics (pay gap and total compensation)	85
ESRS S1	S1-17	Incidents, complaints and severe human rights impacts	83

KEMIRA 2024 | FINANCIAL STATEMENTS | 40

SUSTAINABILITY STATEMENT 2024

Environment

EU taxonomy

The European Union’s target is to reduce net greenhouse gas emissions to zero by 2050. In

order to reduce greenhouse gas emissions and to better engage the private sector in the

green transition, the EU has introduced the EU taxonomy, a common classification system to

define environmentally sustainable economic activities. The aim of the taxonomy is to classify

economic activities based on their contribution to six environmental objectives 1) climate

change mitigation, 2) climate change adaptation, 3) sustainable use and protection of water

and marine resources, 4) transition to a circular economy, 5) pollution prevention and control,

and 6) protection and restoration of biodiversity and ecosystems. The EU taxonomy is still

developing and as yet does not cover all economic activities. For 2024, companies are

required to disclose what proportion of their turnover, capital expenditure (CapEx) and

operating expenditure (OpEx) are both eligible and aligned according to the EU taxonomy’s

two environmental objectives and eligible according to the EU taxonomy's environmental

objectives 3–6. *

The manufacturing sector, which Kemira is considered to be part of, is largely out of the scope

of the current legislation. Currently this mainly includes the manufacturing of basic materials

and chemicals such as chlorine, soda ash and hydrogen. Kemira on the other hand mostly

produces specialty chemicals and therefore its current eligibility and alignment figures are

low. The EU taxonomy's third environmental objective covers the sustainable use of water.

However, it does not include enabling activities for the sustainable use of water, but instead

focuses more on activities that are directly linked to water infrastructure, from construction

to operation to renewal of water infrastructure. Kemira's products are essential for clean

drinking water and wastewater, but they are currently excluded from the scope of the EU

taxonomy. Kemira is in active dialogue with the EU commission regarding the scope of the EU

taxonomy and the importance of chemicals as an enabler for water infrastructure.

ACCOUNTING PRINCIPLES

The EU taxonomy requires the disclosure of three financial indicators: turnover, capital

expenditure (CapEx) and operating expenditure (OpEx). These indicators are defined by the

EU taxonomy and the definitions differ from the IFRS-definitions of CapEx and OpEx, which

are used elsewhere in Kemira’s financial reporting. Kemira has calculated the KPIs based on

the definitions used in the EU taxonomy and has taken a conservative approach when

interpreting the EU Taxonomy Regulation. The EU taxonomy also requires companies to

disclose how they have avoided double counting of their economic activities. Kemira avoided

double-counting by ensuring that turnover, CapEx and OpEx were only allocated once to the

taxonomy activities and only to one environmental objective: climate change mitigation.

Kemira does not contribute to multiple environmental objectives.

KEMIRA’S TAXONOMY-ELIGIBLE AND TAXONOMY-ALIGNED ECONOMIC

ACTIVITIES (PLEASE SEE TABLES ON FOLLOWING PAGES FOR A MORE

DETAILED BREAKDOWN)


Key Performance Indicator	Total (MEUR)	Share of taxonomy- eligible economic activities (%)	Share of taxonomy non-eligible economic activities (%)	Share of taxonomy aligned economic activities (%)	Share of taxonomy non-aligned economic activities (%)
Turnover	2,948.1	0	100	0	100
Capital expenditure (CapEx) as per definition of the EU Taxonomy	208.7	1	99	0	100
Operating expenditure (OpEx) as per definition of the EU Taxonomy	109.4	0	100	0	100

Turnover in EU Taxonomy equals revenue in Kemira's financial reporting. Capex as per the definition of the EU taxonomy

equals Kemira's reported capital expenditure with additions into right-of-use assets. Opex as per the definition of the EU

taxonomy equals direct R&D and maintenance expenditure. Please refer to the Financial Statements note 2.1 for more

information on revenue, 3 for capital expenditure and 2.2 for operating expenditure.

Turnover. Kemira’s eligible turnover mainly consisted of industrial by-products, such as

hydrogen and waste heat that is sold for district heating. Kemira’s waste heat turnover is

taxonomy-aligned, while hydrogen turnover is not taxonomy-aligned due to the lack of life-

cycle-assessments in a form required by the EU Taxonomy Regulation.

Capital expenditure. Kemira had no revenue-related CapEx as the taxonomy-eligible turnover

consisted of industrial by-products for which Kemira does not specifically spend CapEx. In

terms of individually sustainable CapEx**, Kemira spent EUR 1.2 million CapEx on electric

vehicles in 2024.

KEMIRA 2024 | FINANCIAL STATEMENTS | 41

SUSTAINABILITY STATEMENT 2024

Operating expenditure. Kemira had no revenue-related OpEx as the taxonomy-eligible

turnover consisted of industrial by-products on which Kemira does not specifically spend

OpEx. Based on Kemira's analysis, individually sustainable OpEx** was not material in 2024.

*Taxonomy-eligibility means that an activity is classified in the taxonomy, which is an indication that it might have a

substantial contribution to one of the six environmental objectives of the taxonomy. Taxonomy-aligned means that an

activity is environmentally sustainable, according to the EU taxonomy criteria. Economic activities are considered to be

aligned according to the EU taxonomy when they:

• Make a substantial contribution to one of the six objectives mentioned above and they comply with certain technical

screening criteria.

• Do no significant harm (DNSH) to the achievement of any other objective of the EU taxonomy.

• Comply with minimum safeguards for human rights, taxation, corruption and fair competition.

Kemira has assessed its eligible revenue based on the above categories, to determine whether the taxonomy-eligible

activities are also taxonomy-aligned activities. In 2023, Kemira performed a minimum safeguards self-assessment in

relation to the EU Taxonomy reporting in the fields on human rights, taxation, corruption and fair competition. The

conclusion from this assessment is that Kemira meets the EU Taxonomy minimum safeguards on a group level. In its

taxonomy reporting, Kemira has taken into account the latest regulation regarding DNSH criteria and delegated acts.

**Individually sustainable CapEx / OpEx refers to CapEx / OpEx that enables an economic activity to be conducted in a

low-carbon manner or to reduce greenhouse gas emissions.

FORM 1 FOR THE ECONOMIC ACTIVITIES OF CERTAIN ENERGY SECTOR –

NUCLEAR ENERGY AND FOSSIL GAS RELATED ACTIVITIES


Row	Nuclear energy related activities
1.	The undertaking carries out, funds or has exposures to the research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2.	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using the best available technologies.	NO
3.	The undertaking carries out, funds or has exposures to the safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas related activities
4.	The undertaking carries out, funds or has exposures to the construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5.	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6.	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

KEMIRA 2024 | FINANCIAL STATEMENTS | 42

SUSTAINABILITY STATEMENT 2024

TURNOVER


Financial year 2024	2024			Substantial contribution criteria						DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)	Code (a) (2)	Turnover (3)	Proportion of Turnover, year 2024 (4)	Climate Change Mitigation (5)	Climate Change Adaptation (6)	Water (7)	Pollution (8)	Circular Economy (9)	Biodiversity (10)	Climate Change Mitigation (11)	Climate Change Adaptation (12)	Water (13)	Pollution (14)	Circular Economy (15)	Biodiversity (16)	Minimum Safeguards (17)	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover, year 2023 (18)	Category enabling activity (19)	Category transitional activity (20)
		MEUR	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy aligned)
Production of heat/cool from waste heat	4.25	7.4	0.3%	Y	N/EL	N/EL	N/EL	N/EL	N/EL		Y	Y	Y	Y	Y	Y	0.2%
Turnover of environmentally sustainable activities (Taxonomy Aligned (A.1)		7.4	0.3%	0.3%	0.0%	0.0%	0.0%	0.0%	0.0%								0.2%
Of which Enabling			0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Of which Transitional			0.0%	0.0%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL
Manufacture of hydrogen	3.10	5.2	0.2%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0.1%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		5.2	0.2%	0.2%	0.0%	0.0%	0.0%	0.0%	0.0%								0.1%
A. Turnover of Taxonomy eligible activities (A.1+A.2)		12.6	0.4%	0.4%	0.0%	0.0%	0.0%	0.0%	0.0%								0.4%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities		2,935.5	99.6%
TOTAL		2,948.1	100.0%

EL = eligible

N/EL= non-eligible

KEMIRA 2024 | FINANCIAL STATEMENTS | 43

SUSTAINABILITY STATEMENT 2024

CAPEX

Financial year 2024

2024

Substantial contribution criteria

DNSH criteria

('Does Not Significantly Harm')

Economic Activities (1)

Code (a) (2)

CapEx (3)

Proportion of CapEx,

year 2024 (4)

Climate Change Mitigation

(5)

Climate Change Adaptation

(6)

Water (7)

Pollution (8)

Circular Economy (9)

Biodiversity (10)

Climate Change Mitigation

(11)

Climate Change Adaptation

(12)

Water (13)

Pollution (14)

Circular Economy (15)

Biodiversity (16)

Minimum Safeguards (17)

Proportion of Taxonomy

aligned (A.1.) or eligible (A.2.)

CapEx, year 2023 (18)

Category enabling activity

(19)

Category transitional

activity (20)

MEUR

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy aligned)

Production of heat/cool from waste heat

4.25

0.0

0.0%

N/EL

0.0%

CapEx of environmentally sustainable

activities (Taxonomy-aligned) (A.1)

0.0

0.0%

Of which Enabling

0.0%

Of which Transitional

0.0%

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

Manufacture of hydrogen

3.10

0.0

0.0%

N/EL

0.0%

Transport by motorbikes, passenger cars and

light commercial vehicles

6.5

1.2

0.6%

N/EL

1.0%

CapEx of Taxonomy-eligible but not

environmentally sustainable activities

(not Taxonomy-aligned activities) (A.2)

1.2

0.6%

0.0%

1.0%

A. CapEx of Taxonomy eligible activities

(A.1+A.2)

1.2

0.6%

0.0%

1.0%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

CapEx of Taxonomy-non-eligible activities

207.5

99.4%

TOTAL

208.7

100.0%

EL = eligible

N/EL= non-eligible

KEMIRA 2024 | FINANCIAL STATEMENTS | 44

SUSTAINABILITY STATEMENT 2024

OPEX

Financial year 2024

2024

Substantial contribution criteria

DNSH criteria

('Does Not Significantly Harm')

Economic Activities (1)

Code (a) (2)

OpEx (3)

Proportion of OpEx,

year 2024 (4)

Climate Change Mitigation

(5)

Climate Change

Adaptation (6)

Water (7)

Pollution (8)

Circular Economy (9)

Biodiversity (10)

Climate Change Mitigation

(11)

Climate Change

Adaptation (12)

Water (13)

Pollution (14)

Circular Economy (15)

Biodiversity (16)

Minimum Safeguards (17)

Proportion of Taxonomy

aligned (A.1.) or eligible

(A.2.) OpEx, year 2023 (18)

Category enabling activity

(19)

Category transitional

activity (20)

MEUR

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y; N;

N/EL

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable activities (Taxonomy aligned)

Production of heat/cool from waste heat

4.25

0.0

0.0%

N/EL

0.0%

OpEx of environmentally sustainable activities

(Taxonomy-aligned) (A.1)

0.0

0.0%

Of which Enabling

0.0%

Of which Transitional

0.0%

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

EL;

N/EL

Manufacture of hydrogen

3.10

0.0

0.0%

N/EL

0.0%

Transport by motorbikes, passenger cars and

light commercial vehicles

6.5

0.0

0.0%

N/EL

0.0%

OpEx of Taxonomy-eligible but not

environmentally sustainable activities

(not Taxonomy-aligned activities) (A.2)

0.0

0.0%

A. OpEx of Taxonomy eligible activities

(A.1+A.2)

0.0

0.0%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible activities

109.4

100.0%

TOTAL

109.4

100.0%

EL = eligible

N/EL= non-eligible

KEMIRA 2024 | FINANCIAL STATEMENTS | 45

SUSTAINABILITY STATEMENT 2024

E1 Climate change

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO ENERGY AND CLIMATE CHANGE


Material impacts, risks and opportunities		Position in the value chain	Key management areas of processes and policies
Energy
●	Kemira's operations, particularly production of sodium chlorate, are very energy-intensive	● Own operations	• Kemira has an Integrated Management System that follows the ISO 14001 standard, with third-party verification, and the system is improved and developed continuously • Kemira is committed to Finland’s Energy Efficiency Agreement (2017-2025), initiated EnRe5 to reduce energy use by 5% from the 2022 baseline within two to three years, and completed by Kemira's own E3plus program • Kemira's strategy focus on long-term power purchase agreements (PPA), securing guarantees of origins (GOO), and further electrification of our operations. By the end of 2025, we aim to have carbon- free electricity at all our sites in Finland. • Kemira’s SBTi commitment will strive for continuous improvement in Scope 1 and 2 emissions
●	The majority of the purchased energy comes from low-carbon sources	● Own operations
▲	Kemira's operations generate greenhouse gas emissions from fossil-based energy especially in the USA and China	● Own operations
△	Climate-related transition risks arising from energy price volatility, which can significantly affect our operational costs and the financial performance of our energy-intensive clients	● Own operations ↘ Downstream	• Kemira has implemented sourcing programs to mitigate energy price volatility risks • Kemira has adapted manufacturing procedures for production optimization in response to energy cost fluctuations
Climate change adaptation
▲	Climate change related risks could cause financial impacts to Kemira's operations, e.g. by disrupting manufacturing production, blocking transport routes, limiting access to facilities. Climate-related risks might require investments to mitigate risks arising from extreme weather conditions.	● Own operations	• Kemira manages the physical chronic and acute climate-related risks by enhancing infrastructure robustness, optimizing critical systems maintenance, and advancing emergency and resource strategies.
Climate change mitigation
●	Kemira’s activities generate greenhouse gas emissions (Scope 1 and 2), driven by energy use in manufacturing	● Own operations	• Kemira is committed to Finland’s Energy Efficiency Agreement (2017-2025), initiated EnRe5 to reduce energy use by 5% from the 2022 baseline within two to three years, and our E3plus program. • Kemira has a power purchase agreements (PPA) program to phase out fossil-based energy. • Kemira’s SBTi commitment will strive for continuous improvement in Scope 1 and 2 emissions.
●	Kemira’s upstream and downstream value chains generate over 80% of Kemira's total greenhouse gas emissions (Scope 3), which are mainly generated from purchased goods and services	↗ Upstream ↘ Downstream	• Kemira’s SBTi commitment will strive for continuous improvement in Scope 1, 2 and 3 emissions, also reducing Kemira’s reliance on fossil-based energy. • Kemira has launched a supplier-engagement program to improve Scope 3 emissions process. • Kemira has an internal process to manage substances of potential concern and develop management plans for them, including the possibility of replacing substances subject to stricter regulation.
△	Inability to transition from fossil-based raw materials to alternatives creates a climate-related transition risk which might decrease the demand for Kemira's products. Restricting the use of currently used oil-based raw materials is a risk for the industry.	● Own operations
□	Increased emissions reduction requirements and moving away from fossil- based materials together with pressure to optimize industrial processes creates demand for chemicals and solutions as well as sales for renewable products	↗ Upstream ● Own operations ↘ Downstream	• Kemira’s New Product Development (NPD) processes ensure that projects demonstrate both sustainability and business benefits. • Kemira’s Growth Accelerator unit accelerates the commercialization of new and unique renewable and biomaterials into our current markets and creates business opportunities in new adjacent markets.
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

KEMIRA 2024 | FINANCIAL STATEMENTS | 46

SUSTAINABILITY STATEMENT 2024

Identification of material impacts, risks and opportunities

Kemira has identified climate-related impacts, risks and opportunities through the materiality

assessment process, which can be found under Impacts, risks and opportunities in the

General disclosure section. The management of identified climate-related impacts, risks and

opportunities is summarized in the table on the previous page.

Strategy and transition plan

As a company, Kemira is committed to operating in a manner that minimizes its negative

impact and maximizes our positive contributions to achieving the UN Sustainable

Development Goals (SDGs). More detailed information on Kemira's SDGs can be found in the

Board of Directors' review.

Kemira is also committed to the Science Based Targets initiative (SBTi) to ensure climate

action, which is fact-based and aligned with the expectations of our stakeholders and the

scientific community. Kemira's climate targets were validated by the Science Based Targets

initiative in 2024. Additionally, Kemira joined the Renewable Carbon Initiative, to demonstrate

our commitment to accelerate the shift from fossil carbon to renewable carbon and raw

materials. Kemira’s near-term Scope 1 and 2 target is in line with the Paris Agreement target

to limit global warming to 1.5°C. Kemira is not excluded from the EU Paris-aligned Benchmarks

(PAB). More detailed information on the SBTi targets can be found under Targets related to

Climate change.

Kemira’s supports customers in becoming more sustainable by offering sustainable chemical

solutions. Climate-related impacts, risks, and opportunities are integral to our business model

and strategy. The considerations of our climate-related impacts, risks, and opportunities are

embed into our operations by assessing the climate resilience of our business and by focusing

on climate-related transition and physical risks and opportunities, following the

recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Kemira conducted an initial climate risk scenario analysis following the TCFD framework in

2022, followed by a second phase in 2023, with support from external parties. These

assessments evaluated climate risks from a global perspective and included local evaluations

across Kemira's 11 manufacturing sites and 8 business functions. This established process

can be applied across all of Kemira’s manufacturing sites and functions over time, providing a

comprehensive assessment of our climate risk.

Climate-related transition risks and opportunities are also an integrated aspect of Kemira's

investment strategy. Kemira's New Product Development (NPD) process ensures that

successful projects clearly demonstrate both sustainability and business benefits, with every

decision to proceed to product launch. We conduct comprehensive sustainability evaluations,

assessing the economic, environmental and social impacts of new products and solutions on

both our operations and those of our customers. The New Product Development process aims

to improve the sustainability performance of each product that is replaced, including climate-

related indicators for both reducing the footprint and increasing the handprint.

The climate risk scenario analysis included interviews with Business Controllers and Finance

functions, to evaluate the financial impact of identified risks on the company. The climate risk

scenario analysis was evaluated across three time horizons: short-term (until 2030), medium-

term (2030-2050), and long-term (2050 and beyond). The analysis included 15 transition risks,

including policy and legal, reputational, technological and markets risks, as well as five

physical risks, including acute and chronic risks. In addition, it identified various opportunities.

Climate change scenarios from the Intergovernmental Panel on Climate Change (IPCC),

specifically the Representative Concentration Pathways (RCPs), were used to evaluate these

risks and opportunities. RCP 2.6 represents a scenario where the global temperature rise

remains below 2°C by 2100, reflecting the strictest possible regulatory environment, while

RCP 8.5 is considered a worst-case scenario with continued emissions increases through

2100, leading to severe chronic and acute climate risks. Risks and opportunities were

assessed for their potential to materialize under one, both or neither of these scenarios.

As a company operating in a high climate impact sector, Kemira acknowledges a responsibility

for sustainability and protecting the planet. Complementing these efforts, an in-depth

geographical climate risk assessment will be completed in 2025, strengthening our resilience

against future regulatory requirements, such as carbon pricing mechanisms that can impact

energy and chemical raw materials. In late 2023, Kemira conducted a geographical climate

risk assessment with an external third party. This assessment was based on site location

coordinates and utilized several international databases, and the initial high-risk locations

were identified. Kemira is committed to not only measuring and tracking greenhouse gas

(GHG) emissions but also actively working to reduce them. Kemira's strategy supports the

company's operations to focus on reducing reliance on fossil fuels and to significantly

increase the proportion of biobased products by 2030. To mitigate potential negative impacts

KEMIRA 2024 | FINANCIAL STATEMENTS | 47

SUSTAINABILITY STATEMENT 2024

within their value chains, Kemira actively encourages suppliers to transition to renewable

energy sources.

Since Scope 3 emissions constitute more than 80% of Kemira's total GHG emissions,

engagement with value chain partners is crucial. Most of the supply chain emissions stem

from purchased goods and services, primarily originating from hard-to-abate sectors. To

address this, Kemira has identified and implemented several strategic levers aimed at

reducing emissions within our own supply chain.

Also the transition to renewable resources is one of the core elements in Kemira’s product

portfolio strategy. In 2024, Kemira intensified efforts to minimize these impacts by enhancing

energy efficiency and adopting strategic energy-sourcing practices. Through ongoing

improvements in energy efficiency at manufacturing sites, Kemira is consistently decreasing

energy consumption, emissions and associated costs.

In 2025, Kemira will complete a climate transition plan to bind together all climate related

initiatives and activities. This plan will be included in action and resource planning as well as

integrated in Kemira business plans.

POLICIES RELATED TO CLIMATE CHANGE

As Kemira strives to become the leading provider of sustainable chemical solutions, we

acknowledge our dual responsibility to drive positive impacts by helping industries adopt

more sustainable practices and minimize potential negative impacts, such as emissions, from

our energy-intensive manufacturing operations.

Kemira is committed to operating safely and responsibly and reducing its impacts through its

whole value chain whilst also continuously improving its sustainability performance following

strategy, the Code of Conduct and other policies and the Integrated Management System.

Kemira's Integrated Management System is intended to ensure that Kemira can meet its

commitments and be compliant with the applicable requirements. The Sustainability Policy

includes e.g Kemira's commitment to climate change mitigation and adaptation and to energy

efficiency and renewable energy deployments. It is aligned with the Kemira Code of Conduct

and other internal Kemira policies. Kemira’s sustainability approach is also contributing to the

risk management process at Kemira, as defined in the Kemira Group Risk Management Policy.

Key contents, scope, the process, accountability and availability of the policies is described in

the G1 Business Conduct section, under Corporate Culture and Business Conduct Policies.

Kemira monitors and reviews information on the relevant interested parties and their specific

requirements at least once a year. Partners in our value chain are evaluated for their

sustainability performance, in line with Kemira's Code of Conduct for Business Partners

policy. Kemira’s suppliers must follow our Code of Conduct for Business Partners in their

business activities, with set requirements for environmental responsibility. Kemira also has a

due diligence process that must be applied to all new agents and distributors who act as third

parties for Kemira. In addition, Kemira continued enrolling its suppliers into the Kemira

Sustainability program by assessing them through EcoVadis. In 2024, a total of 528 suppliers

have gone through the assessment. This assessment also addresses the suppliers'

commitment to the SBTi as well as their quantitative objectives in environmental matters.

Results with low scores were reviewed together with suppliers and improvement plans were

made accordingly.

ACTIONS RELATED TO CLIMATE CHANGE

Kemira has actions which relate to climate change impacts, risks and opportunities from our

suppliers to own manufacturing. Kemira's supply chain decarbonization actions focus on

improving resource efficiency and on encouraging suppliers to switch to renewable energy. In

2023, Kemira launched a Supplier Engagement Program to collect product carbon footprint

data ("primary data") from our suppliers, replacing general secondary data. This approach

enhances our Scope 3 emissions process, identifies reduction opportunities and supports

lifecycle decarbonization. The program also improves emissions data quality for raw

materials, benefiting both our sustainability goals and our value chain partners, while

positively impacting local communities and customers.

In 2023, Kemira assessed the top 350 Raw Material Suppliers, corresponding to 98% of

cumulative emissions from raw materials and trade goods. Less than half of these suppliers

publicly report Scope 1 and 2 emissions or have set targets for these emissions.

Approximately 20% of the suppliers report their Scope 3 emissions and only 7% have set

targets for Scope 3 reductions. Around 50 supplier entities have committed to or have set

SBTi targets, either near-term or net-zero. Kemira conducted an internal abatement cost

analysis for Scopes 1, 2 and 3 in 2024. For Scope 1 and 2, the analysis showed that the most

KEMIRA 2024 | FINANCIAL STATEMENTS | 48

SUSTAINABILITY STATEMENT 2024

cost effective way to reduce emissions is to concentrate on low carbon and carbon-free

energy sourcing related to Scope 2.

Energy

Kemira continued implementing our E3plus (Energy Efficiency Enhancement) program

throughout 2024. This initiative aims to reduce the overall specific energy consumption at

Kemira's own manufacturing sites. In 2024, we achieved significant energy savings through

the implementation of 55 projects across Kemira’s operations, resulting in a total of 20,675

MWh per year of energy savings, equivalent to EUR 1.1 million in savings. Since the start of the

E3plus program in 2010, more than 725 projects have been implemented, estimated

cumulatively saving EUR 16 million. Kemira is also participating in Finland’s voluntary national

Energy Efficiency Agreement (”Energiatehokkuussopimus”) for the period 2017–2025, which is

part of Finland’s national ratification of the EU’s response to the Paris Climate Agreement.

Since 2017, the total energy savings reported to the National Energy Authority in Finland

("Energiavirasto") amount to 125,000 MWh per year, equivalent to approximately EUR 3.8

million a year.

In addition, we continued the Energy Reduction 5% (EnRe5) program which especially targets

Kemira's own coagulant and polymer manufacturing sites. This program aims to achieve a 5%

reduction in energy consumption over the next two to three years, using 2022 as the base

year. During 2024, 18 projects were identified which resulted in a saving of around 16,000 MWh

of energy. This corresponds to a total reduction of 8.5%, which significantly surpasses the

initial target of a 5% reduction in energy consumption. To date, the database includes over 68

projects, collectively achieving energy consumption savings of approximately 55,000 MWh.

Climate change adaptation and mitigation

Kemira launched a new Growth Accelerator unit in 2022, to accelerate the commercialization

of new and unique biomaterials into our current markets and to create business opportunities

in new, adjacent markets for both new and existing Kemira products. Kemira has set a target

of growing the revenue from Kemira’s renewable solutions to more than EUR 500 million by

2030 and achieved EUR 240 million in 2024.

Kemira has initiated several research and development projects to increase the share of

renewable and recycled materials used as raw materials for own products. These projects aim

to reduce the product carbon footprint of these products and to meet other sustainability

market demand drivers. One of Kemira's approaches to replacing fossil raw materials is the

mass balance concept, which enables quick expansion towards biobased and sustainable

products and having a significantly lower carbon footprint compared to traditional products.

This means that renewable raw materials can be utilized in existing production

infrastructures, creating identical product quality and performance in making conventional

products. The mass balanced products have an ISCC PLUS* certification for the mass-

balance accreditation. Kemira produces certified biomass balance products in ISCC-

accredited manufacturing sites in multiple locations and supplies them to customers globally

in water-intensive industries. In 2022, Kemira was the first company in the world to sell ISCC

PLUS-certified polyacrylamide (PAM) polymers.

To further reduce reliance on fossil fuels like oil and gas derivatives, Kemira focuses on

obtaining renewable energy attributes and energy efficiency programs for the most

emissions- and electricity-intensive manufacturing sites. Other projects, such as replacing

fossil fuels with biofuels and modifying processes that use hydrogen generated from carbon-

containing feedstocks to either directly purchase green hydrogen or to generate green

hydrogen onsite are also due to be considered. Kemira's strategy to reduce reliance on fossil

fuels is a combination of renewable power purchase agreements (RE-PPAs), equity ownership

of low-emission portfolio power companies trough Teollisuuden Voima and Pohjolan Voima

and the further electrification of our processes. For instance, Kemira's Mojave site in

California has recently agreed to install a 927-kW photovoltaic solar system to power the site.

Kemira has two Power Purchase Agreements in wind power and an ownership in Pohjolan

Voima Oyj and Teollisuuden Voima Oyj (Financial statements note 3.5 Other Shares) producing

CO2-free electricity with nuclear and hydro power plants in Finland. CO2-emissions and energy

efficiency matters are considered in capital investments, thus also affecting non-current

assets (Financial note 3.3 Property, Plant and Equipment) as well as future cash flow

forecasts used in goodwill impairment testing (Financial note 3.1 Goodwill).

To clarify its focus on sustainability and strategic priorities, Kemira divested its Oil & Gas

related portfolio in early 2024. The divestment reduced Kemira's emissions in all three Scopes

which was then taken into account in the SBTi target setting. Changes in Kemira's business

structures since 2018 have corresponded to a decrease of 35,770 tonnes of CO2eq, resulting

from business transactions and the closure of certain sites.

KEMIRA 2024 | FINANCIAL STATEMENTS | 49

SUSTAINABILITY STATEMENT 2024

While the specific costs associated with energy and climate

change mitigation and adaptation efforts have not yet been

fully quantified and allocated, Kemira is proactively

implementing measures to manage these risks. Climate

change-related natural catastrophes, such as more frequent

and severe weather events present significant risks to

manufacturing infrastructure, supply chains and downstream

business activities.

To address these risks, Kemira is considering several

response measures, including:

• Reinforcing critical infrastructure,

• Inspecting and maintaining heating and cooling systems in

manufacturing areas and warehouses,

• Establishing comprehensive preparedness plans to ensure

safety, including increasing site cooling systems

capacities and increasing automation to reduce manual

labor,

• Installing backup generators to ensure the functionality of

critical equipment during power outages,

• Increasing inventory levels before severe weather

seasons,

• Preparing contingency plans with alternative raw material

suppliers and implementing a dual supplier policy,

• Constructing dykes and embankments at sites susceptible

to flooding.

Kemira has allocated resources from different functions to

execute the actions related to climate change and other

Environmental topics, for example EHSQ, Sourcing, R&D,

Product lines and Manufacturing.

TARGETS RELATED TO CLIMATE CHANGE

Kemira's emission reduction targets for Scope 1 and 2 as well

as Scope 3 were formally validated by SBTi in 2024,

continuing progress towards the targets established as part

of the updated climate commitment in 2022. The SBTi

targets were developed in close collaboration with internal

stakeholders such as EHSQ, sourcing, logistics and R&D.

GREENHOUSE GAS EMISSIONS

Kemira's targets drive efforts in climate change mitigation,

adaptation, energy efficiency and the increasing use of

renewable energy. Kemira is making significant progress

toward its climate targets, having successfully reduced

Scope 1 and 2 emissions by 34.5% and Scope 3 emissions by

19.5% compared to the base year 2018.

KEMIRA 2024 | FINANCIAL STATEMENTS | 50

SUSTAINABILITY STATEMENT 2024

Kemira's Scope 1 and 2 near-term target follows an absolute contraction approach, requiring

an annual reduction rate of 4.27% from the 2018 base year to the 2030 target year. In total, it

equals to 51.23% reduction in Scope 1 and 2 emissions, from 894,303 tonnes of CO2eq in 2018

to 436,000 tonnes of CO2eq by 2030. Scope 3 GHG emission reductions require a reduction

rate of 2.71% annually from the 2021 base year to the 2033 target year meaning a total of a

32.50% reduction in Scope 3 emissions from 2,337,475 tonnes of CO2eq in 2021 to 1,577,000

tonnes of CO2eq by 2033. 2021 was selected as the base year for Scope 3 due to significant

improvements in Scope 3 emissions data accuracy since 2018. Progress towards Kemira's

climate goals is reported quarterly to Kemira's Management Board.


GHG emissions reduction		Absolute value 1)		Reduction %
GHG emissions reduction	Target year	2024	Target	2024	Target
Scope 1 and 2 (market-based)	2030	585.9	436.0	34.48	51.23
Scope 3	2033	1880.7	1,577.0	19.54	32.50

1) Absolute value kt CO2eq

Scope 1 and 2 emissions reduction

Kemira's long-term ambition is to achieve carbon neutrality by 2045 for combined Scope 1 and

2 market-based GHG emissions and we will continuously evaluate this goal in response to

global legislation, own strategy and advances in climate science.

As Scope 2 emissions constitute 80% of Kemira's total Scope 1 and 2 emissions, with

emissions from purchased electricity accounting for approximately 79%, Kemira will focus on

significant investments in renewable energy, energy efficiency and new technologies to meet

our Scope 1 and 2 targets. In addition, decarbonization efforts within Scope 2 generally do not

require significant CapEx, leading to a much lower cost per ton of CO2eq abated compared to

Scope 1.

Scope 3 emissions reduction

Kemira's SBTi Scope 3 target covers emissions from Scope 3.1, 3.4 and 3.9. Scope 3.1 covers

raw materials and traded goods, and Scope 3.4 and 3.9 cover intercompany transportation

and outbound transportation from Kemira to customers, covering about 75% of our total

Scope 3 emissions.

In 2024, Kemira conducted an internal Scope 3.1 GHG abatement analysis to identify key

abatement levers. Over 50% of Kemira’s Scope 3.1 abatement relies on renewable electricity

and heat for our Tier 1 and Tier 2 suppliers. Key levers also consider renewable feedstocks,

including renewable naphtha, ammonia and methanol and the implementation of CCS (Carbon

Capture) technologies for emission intensive processes like steam methane reformers and

stream crackers. These elements are included in the Kemira Supplier Engagement Program.

The Scope 3.1 abatement strategy includes a combination of levers influenced by both Kemira

and our suppliers. These levers include e.g. innovating sustainable material sourcing,

enhancing resource circularity and improving efficiencies throughout our supply chain.

For Scope 3.4 and 3.9 emissions, we are using a bottom-up approach that consists of

conducting regional logistics assessments to develop strategies for reducing CO2eq

emissions in Kemira transport, combined with a top-down approach that utilizes supply chain

management to assess regulatory impacts and service provider commitments for reducing

emissions in line with SBTi. The levers for Scope 3.4 and 3.9 include e.g. reducing freight

transportation demand as well as optimizing freight transport modes, enhancing fleet energy

efficiency with the cooperation of logistics service providers and lowering the carbon intensity

of energy used and market and regulations-driven emissions reduction.

Progress towards the targets for all the Scopes are reported annually in our Sustainability

Statement and through CDP Climate Change and EcoVadis submissions. Kemira will

reevaluate these targets in 2029 at the latest and will set reduction targets for every five

years after 2030, as needed. Our near-term targets have been validated by the SBTi, ensuring

they are science-based and that our Scope 1 and 2 targets are aligned with limiting global

warming to 1.5°C. Kemira rates amongst the top performers in the chemical industry in CDP

and EcoVadis. The new CDP Climate Change 2024 ratings were published in February 2025.

Kemira retained its B score.

Future considerations, including sales volumes, mergers and acquisitions, the cost of carbon

and other market drivers will be factored into our emissions reduction roadmaps. While

regulatory impacts and carbon costs are subject to uncertainty, we remain committed to

achieving our targets through proactive and strategic measures.

KEMIRA 2024 | FINANCIAL STATEMENTS | 51

SUSTAINABILITY STATEMENT 2024

METRICS RELATED TO CLIMATE CHANGE

ENERGY CONSUMPTION

Kemira operates in high climate impact sectors. Sectors are defined based on the EU's

Nomenclature of Economic Activities (NACE) classifications of economic activities, where

Kemira operations are allocated under other organic and inorganic chemical manufacturing.


Energy consumption and mix	2024	2023
(1) Fuel consumption from coal and coal products, MWh	N/A	N/A
(2) Fuel consumption from crude oil and petroleum products, MWh	19,714	24,076
(3) Fuel consumption from natural gas, MWh	375,310	465,513
(4) Fuel consumption from other fossil sources, MWh	237,737	270,635
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources, MWh	604,137	629,042
(6) Total fossil energy consumption, MWh	1,236,898	1,389,266
Share of fossil sources in total energy consumption, %	31.3	34.0
(7) Other non-renewable energy consumption, MWh	334,966	325,698
Share of other non-renewable sources in total energy consumption, %	8.5	8.0
(8) Consumption from nuclear sources, MWh	1,283,988	1,439,084
Share of consumption from nuclear sources in total energy consumption, %	32.5	35.3
(9) Fuel consumption from renewable sources, MWh	—	—
(10) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources, MWh	1,100,753	927,881
(11) Consumption of self-generated non-fuel renewable energy, MWh	144	78
(12) Total renewable energy consumption, MWh	1,100,898	927,959
Share of renewable sources in total energy consumption, %	27.8	22.7
Total energy consumption, MWh (sum of lines 6, 7, 8 and 12)	3,956,749	4,082,007
(13) Energy delivered off-site, MWh	401,845	401,281
Total energy consumption, energy delivered off-site deducted, MWh	3,554,905	3,680,726


Energy intensity	2024	2023
Total energy consumption in high climate impact sector, MWh	3,956,749	4,082,007
Net revenue from activities in high climate impact sectors, EUR million	2,948.1	3,383.7
Energy intensity ¹⁾	0.001	0.001

1) Total energy consumption per net revenue (activities in high climate impact sectors is in Kemira's total net revenue

disclosed in Consolidated Income Statement in Financial Statement)


Energy production, MWh	2024	2023
Renewable	19,777	78
Non-renewable	425,796	441,651

CLIMATE CHANGE ADAPTATION AND MITIGATION

Greenhouse gas emissions


Greenhouse gas emissions intensity	2024	2023
GHG intensity (location-based) ¹⁾	0.001	0.001
GHG intensity (market-based) ¹⁾	0.001	0.001
Net revenue, EUR million	2,948.1	3,383.7

1) Total GHG emissions metric tCO2eq per net revenue (Net revenue disclosed in Consolidated Income Statement in

Financial Statement)


Greenhouse gas emissions by region, tCO2eq	2024
Greenhouse gas emissions by region, tCO2eq	EMEA	APAC	Americas	Total
GHG emissions (location-based)	1,611,792	504,161	1,157,657	3,273,610
GHG emissions (market-based)	1,607,509	498,978	1,008,151	3,114,638


Greenhouse gas emissions by region, tCO2eq	2023
Greenhouse gas emissions by region, tCO2eq	EMEA	APAC	Americas	Total
GHG emissions (location-based)	1,586,714	524,643	1,545,243	3,656,600
GHG emissions (market-based)	1,582,461	520,904	1,397,455	3,500,821

KEMIRA 2024 | FINANCIAL STATEMENTS | 52

SUSTAINABILITY STATEMENT 2024


Greenhouse gas emissions	Retrospective					Milestones and target years
Greenhouse gas emissions	Base year	Baseline value	2023	2024	Change, %	2025	2030	2033	Annual % Target / base year
Scope 1 GHG emissions
Scope 1 GHG emissions, tCO2eq	2018	137,352	118,556	118,364	-0.2	—	—	—	—
Scope 1 GHG emissions from regulated emission trading schemes, %	—	—	37.0	48.8	31.9	—	—	—	—
Scope 2 GHG emissions
Scope 2 (location-based) GHG emissions, tCO2eq	2018	1,009,913	622,902	626,533	0.6	—	—	—	—
Scope 2 (market-based) GHG emissions, tCO2eq	2018	756,951	469,839	467,561	-0.5	—	—	—	—
Scope 1 and 2 GHG (market-based) emissions ¹⁾	2018	894,303	588,395	585,925	-0.4	—	436,000	—	4.27
Significant Scope 3 GHG emissions
Total indirect (Scope 3) GHG emissions, tCO2eq	2021	2,337,475	1,862,773	1,880,746	1.0	—	—	1,577,000	2.71
1 Purchased goods and services	2021	2,116,922	1,643,940	1,691,323	2.9	—	—	—	—
4 Upstream transportation and distribution	2021	176,052	179,041	159,176	-11.1	—	—		—
9 Downstream transportation	2021	44,501	39,792	30,247	-24.0	—	—		—
Total GHG emissions 2)
Total GHG emissions (location-based), tCO2eq		3,484,740	2,604,231	2,625,643	0.8	—	—	—	—
Total GHG emissions (market-based), tCO2eq		3,231,778	2,451,168	2,466,671	0.6	—	—	—	—

1) Total of Scope 1 and 2 is based on Kemira's SBTi target which can be found in more detail under Targets related to Climate change

2) Sum of 2018 Scope 1 and 2 baseline values and 2021 Scope 3 baseline value. Kemira does not have a separate reduction target for total GHG emission

The most significant Scope 3 categories for Kemira are 3.1, 3.4, and 3.9, which account for the

majority of the Scope 3 GHG emissions. These categories are also included in Kemira’s near-

term SBTi target as disclosed in the table above. Categories 3.13, 3.14, and 3.15 are irrelevant

for Kemira and 3.10 and 3.11 are pending for quality improvement and are therefore excluded

from the GHG inventory. The remaining categories 3.3, 3.5, 3.6, 3.7, and 3.8 are relevant, but

not significant due their relative small contribution to overall emissions. All relevant,

significant and not significant, Scope 3 emission categories are included to the Gross GHG

emissions.

In 2024, the share of contractual instruments for Scope 2 GHG emissions was 5.6%. Kemira

didn't have any contractual instruments for Scope 2 GHG emissions in 2023.


Gross GHG emissions, tCO2eq	2024	2023
Scope 1 ¹⁾	118,364	136,676
Scope 2 (location-based) ¹⁾	626,533	643,300
Scope 2 (market-based) ¹⁾	467,561	487,520
Scope 3 2)	2,528,713	2,876,625
Total GHG emissions (location-based)	3,273,610	3,656,600
Total GHG emissions (market-based)	3,114,638	3,500,821

1) Excludes Oil & Gas business-related emissions in 2024

2) Includes all relevant Scope 3 emission categories (3.1, 3.3-3.9). Includes Oil & Gas business-related emissions

KEMIRA 2024 | FINANCIAL STATEMENTS | 53

SUSTAINABILITY STATEMENT 2024

GREENHOUSE GAS REMOVALS AND OFFSETTING

Kemira does not currently reduce its GHG emissions with carbon credits. However, Kemira is

planning to look into available options in the future.

INTERNAL CARBON PRICING

In 2019, Kemira introduced an internal carbon pricing sensitivity analysis for investments

exceeding EUR 500,000, to mitigate environmental risks and promote responsible

investments. This was updated in June 2022 to align with EU emission trading scheme (ETS)

prices, setting our internal carbon price at EUR 100/tonnes of CO2eq. The scope of the

internal carbon price is global for Kemira's entire value chain, and, as of January 2024, it

applies to all CapEx investments exceeding EUR 100,000. In 2024, internal carbon pricing

applied to projects with significant climate impacts totaled in EUR 217,000.

In the short term, Kemira's internal carbon pricing has increased awareness within the

company regarding the current and future costs of carbon, fostering a strong corporate

sustainability culture and enhancing its external reputation. This initiative has also led to

tangible carbon reductions and decreased energy consumption costs. In the long term, our

internal carbon price has strengthened internal controls related to risk management, enabling

us to respond more effectively to changing risk assessments. Additionally, it has helped with

identifying and capitalizing on opportunities within our operations and supply chain, aligning

the entire company and portfolio towards a common sustainability goal. This alignment has

further bolstered our corporate reputation externally.

The Group's reporting principles

Energy consumption and mix

Energy consumption at Kemira is assessed based on natural gas used on-site for generating

steam or heat, electricity purchased or supplied by third parties and steam procured or

provided by third parties. The total energy consumption is determined by aggregating the

total fossil energy consumption, energy consumption from nuclear sources, and total

renewable energy consumption. Self-generated non-fuel renewable energy is now included

under the total renewable energy consumption, which was not previously considered.

Energy intensity data is expressed in kilowatt-hours per metric ton of production. To

determine energy intensity, Kemira divides total energy consumption by annual production

volume, noting that energy intensity is significantly influenced by the production mix.

Energy is categorized as fossil, other non-renewable, renewable or nuclear energy according

to established reporting standards and frameworks. Data is collected through meter

readings and invoices, with a current emphasis on invoice data.

The Energy Efficiency Index measures specific energy consumption, which is the ratio of

energy use to production volumes, normalized to a 2012 base year for Kemira’s 15 largest

manufacturing sites. These sites account for approximately 90% of our total energy

consumption and about 80% of our Scope 1 and 2 emissions. The index for the 2012 base

year was set at 100.0, with values below this signifying improvements.

The 2024 energy consumption figures exclude the sites that were part of the Oil & Gas

business operations in January 2024, prior to the divestment transaction closing in February

2024. These sites are estimated to account for 0.3% of the total energy consumption in

2024.

Gross Scopes 1, 2 and 3 and total GHG emissions

Kemira prepares its corporate GHG emissions inventory following the WRI/WBCSD GHG

Protocol for all Scopes. GHG emissions are calculated as CO2eq, encompassing CO2, CH4,

N2O, HFCs, PFCs, SF6 and NF3. Kemira’s GHG inventory complies with the GHG Protocol: A

Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 3)

Accounting and Reporting Standard.

Energy, fuel and production data are collected quarterly to calculate Scope 1 and 2

emissions. Scope 3 emissions are calculated and reported annually, with results included in

Sustainability Statement, EcoVadis and CDP reports. In 2024, 27.6% (10.8%) of Scope 3

emissions were calculated using primary data.

The gross Scope 1 and Scope 2 GHG emissions exclude the sites that were part of the Oil &

Gas business operations in January 2024, prior to the divestment transaction closing in

February 2024. These sites are estimated to account for less than 0.5% of the total gross

Scope 1 + Scope 2 (market-based) GHG emissions in 2024. The gross Scope 3 GHG emissions

for 2024 include emissions from Kemira’s Oil & Gas business for January 2024, prior to the

divestment transaction closing in February 2024.

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SUSTAINABILITY STATEMENT 2024

Categories 3.3, 3.5, 3.6, 3.7, and 3.8 are included in the calculation of the gross Scope 3 GHG

emissions. Categories 3.10 and 3.11 have been estimated but excluded from the inventory

due to pending quality improvements. Categories 3.13, 3.14, and 3.15 are irrelevant for Kemira

and are therefore excluded from the GHG inventory.

Kemira’s GHG emissions are primarily CO2, with negligible emissions of methane (CH4) and

nitrous oxide (N2O). GHG emissions are estimated using CO2eq factors, as CO2 comprises

over 99% of CO2eq emissions.

Direct GHG emissions (Scope 1): Scope 1 emissions are based on the GHG Protocol and

cover all direct GHG emissions from Kemira’s operations. These include emissions from:

• Combustion of fuels: natural gas and fuel oil used by boilers, dryers and internal

combustion engines to generate on-site steam, heat and electricity.

– Hydrogen combustion: at sodium chlorate sites, by-product hydrogen gas is used in

boilers, offsetting fossil fuel use. Emissions from hydrogen combustion are reported as

zero.

– Sulfur combustion: At the site in Helsingborg, Sweden, a sulfur boiler generates steam

and electricity with reported emissions of zero.

• Mobile sources: fuels such as propane, diesel and gasoline used by forklifts and company

vehicles.

• Processing of raw materials: physical or chemical processing of carbon-containing

feedstock, such as natural gas, sodium carbonate, calcium carbonate and coke.

• Transportation fleet: our North American coagulants business unit operates a fleet to

deliver raw materials to our manufacturing sites as well as products to our customers.

Indirect GHG emissions (Scope 2): Scope 2 emissions, based on the GHG Protocol, include

indirect GHG emissions from the off-site generation of purchased electricity, heat and

steam consumed by Kemira. These are acquired from local municipal authorities, private

companies or separate manufacturing facilities within the same industrial complex. Scope 2

emissions from renewable and nuclear energy sources are reported as zero.

These emissions are calculated using:

• A location-based method: emissions are calculated based on average country-specific

emission factors.

• A market-based method: emissions are calculated considering Power purchase

agreements, guarantees of origin, supplier-specific contracts and emission rates

currently purchased by Kemira.

Location- and market-based emissions are calculated for each site. Supplier-provided

emissions data (tonnes CO2eq/MWh) is used where available. If not, fuel mix data from the

supplier is used to calculate a market-based emissions factor. The sources for these

emissions factors include Power Purchase Agreements, the IEA, the UK Government’s

Department for Environment, Food and Rural Affairs (DEFRA), Motiva Ltd and energy utility

companies.

Kemira's Scope 1 and Scope 2 target covers our own manufacturing sites, excluding North

American transportation fleet emissions, which represent approximately 3% of our total

Scope 1 and Scope 2 emissions.

Indirect GHG emissions (Scope 3): Kemira estimates Scope 3 emissions for all relevant

Kemira categories established in the GHG Protocol Corporate Value Chain (Scope 3)

Accounting and Reporting Standard, and the supporting document, Guidance for Accounting

& Reporting Corporate GHG Emissions in the Chemical Sector Value Chain. Emissions are

estimated using guidance documents from the Chemical Sector, DEFRA, IEA, Ecoinvent,

CEFIC and ECTA.

The Scope 3 inventory is split into 15 subcategories (category 1 to category 15):

• Category 1: Purchased goods and services.

– Emission calculations in this category use supplier-specific, hybrid, spend-based

average data and average product methods.

• Category 2: Capital goods.

– Emission calculations are based on supplier-specific, hybrid, spend-based average

data and average product and average spend-based methods.

• Category 3: Fuel-and-energy-related activities (not included in Scope 1 or Scope 2).

– Using average data and spend-based methods.

• Category 4: Upstream transportation and distribution.

– Using average data, fuel-based and spend-based methods.

• Category 5: Waste generated in operations.

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SUSTAINABILITY STATEMENT 2024

– Waste data are collected in seven categories and Kemira follows local environmental

permits for waste reporting and definitions of recovery and disposal methods. Waste

diverted from disposal is assumed to have zero emissions.

• Category 6: Business travel.

– Calculations are based on the distance-based method using Thrust Carbon

methodology. Emissions are reported using historical annual data and we periodically

re-evaluate and update the estimates as necessary.

• Category 7: Employee commuting.

– Calculations are based on fuel-based and distance-based methods, using DEFRA 2012

guidelines and DECC GHG conversion. Emissions are reported using historical annual

data and we periodically re-evaluate and update the estimates as necessary.

• Category 8: Upstream leased assets.

– Employees in leased asset. Calculations are based on the average data method, using

WBCSD guidance, considering energy use of 300 kWh/m2 and emissions of 0.7 kg

CO2eq/kWh.

• Category 9: Downstream transportation.

– Calculations are based on the GLEC methodology, considering the transportation

mode, adjusted weight, average distance and emission intensity factor, along with

average data, fuel-based, and distance-based methods.

• Category 10: Processing of sold products.

– Emissions are not calculated due to data tracking limitations.

• Category 11: Use of sold products.

– Using the average data method, emissions are estimated to be zero or close to zero.

The hydrogen provided to third-parties is zero-carbon fuel.

• Category 12: End-of-life treatment of sold products.

– Calculations are based on the average data method. If a product does not have a new

lifecycle it is classified as waste. Emission factors are sourced from Ecoinvent for

wastewater treatment, incineration and landfill.

• Category 15: Investments.

– No information on emissions from investments is available. All investments are

reported as Scope 1 and 2 emissions linked to physical assets.

The most significant Scope 3 categories for Kemira are 3.1, 3.4, and 3.9, which account for

the majority of the Scope 3 GHG emissions. These categories are also included in Kemira’s

near-term SBTi target. To ensure alignment with Kemira’s internal data systems, category

3.2 is calculated as part of category 3.1. While categories 3.3, 3.5, 3.6, 3.7, and 3.8 have been

calculated, they are not reported as significant emission categories due to their relatively

small contribution to overall emissions. Categories 3.10 and 3.11 have been estimated but

excluded from the inventory due to pending quality improvements. Categories 3.13, 3.14, and

3.15 are irrelevant for Kemira and are therefore excluded from the GHG inventory. Oil & Gas

business related emission are not included to Kemira's SBTi target.

GHG intensity (Scope 1, 2 and 3):

This is calculated as total Scope 1, Scope 2 (market- and location-based) and Scope 3

emissions, divided by our net revenue.

Kemira has no significant operational expenditures (OpEx) or capital expenditures (CapEx) as

defined in ESRS to report related to implementations of the actions.

Measurements of the metrics excluding SBTi targets are not validated by an external body

other than Ernst & Young Oy, through assurance.

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SUSTAINABILITY STATEMENT 2024

E2 Pollution

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO POLLUTION


Material impacts, risks and opportunities		Position in the value chain	Key management areas of processes and policies
Pollution of air, water, soil
●	Pollution impacts to air, water and soil are possible in the raw material extraction processes.	↗ Upstream	• Kemira's Code of Conduct for business partners lays out expectations to supplier for reducing environmental impacts. Pollution risks are evaluated as a part of supplier sustainability assessments. Supplier audits are carried out to identify risks with supplier pollution management.
△	Potential incidents at manufacturing facilities or during transportation resulting in pollution to air, water or soil. Financial implications could materialize from remediation efforts, operation shutdowns as well as reputational damages.	● Own operations	• Prevention of spills and compliance issues resulting in releases to air, water and soil are managed through the Integrated Management System and associated processes.
△	Kemira has environmental liabilities related to historical activities at sites, which have been built prior to current environmental regulations. Changes in regulations or site use may have significant financial implications.	● Own operations	• Kemira has a process to manage and review status of environmental liability management projects and associated provisions on a regular basis. Remediation projects are managed in compliance with authority requirements and in accordance with Kemira's project management principles.
Substances of concern or very high concern
○	Substances of concern or substances of very high concern may cause negative impacts on people and the environment.	↗ Upstream ● Own operations ↘ Downstream	• Kemira's priority substance management process includes substances of concerns and substances of very high concerns in raw materials, and process chemicals in addition to own products. • Sustainability checks in New Product Development (NPD) projects includes safety of Kemira's products and sustainability of raw materials. • Guidance for safe use of substances is available.
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

Identification and management of impacts, risks and opportunities

Kemira has identified material impacts, risks and opportunities for pollution in the materiality

assessment which is described under Material impacts, risks and opportunities in the General

disclosure section. Significant environmental aspects and impacts including the pollution of

air, water and soil in own operations are identified based on collected environmental data,

using the Global Environmental Impacts and Aspects Assessment template. Pollution through

potential spills and accidental chemical releases as well as actual and potential

environmental liabilities related to soil or to closed activities have been identified as material

aspects. Impacts to air, water and soil through air emissions and water effluent from sites

relating to normal operations in accordance with environmental permit conditions have not

been identified as a material aspect.

For substituting and minimizing the use of substances of concern and phasing out substances

of very high concern Kemira has implemented a priority substance management process,

which covers Kemira's entire value chain. According to the process Kemira monitors the whole

product portfolio, including raw materials and process chemicals, for substances of concern

(SoC) and substances of very high concern (SVHC) and prepares management plans for these

substances aimed at defining the specific risks associated with each substance, whilst also

examining options for managing these risks and formulating action plans for preferred

solutions.

POLICIES RELATED TO POLLUTION

Kemira is committed to operating safely and responsibly and to reducing its impacts through

its whole value chain whilst also continuously improving its sustainability performance,

following strategy, the Code of Conduct and other policies and the Integrated Management

System as set out in the E1 Climate change section. All aspects of Health and Safety, the

minimization of harmful releases into air, water and soil, the reduction of resource

consumption and waste generation and the consistent quality of our products are a

KEMIRA 2024 | FINANCIAL STATEMENTS | 57

SUSTAINABILITY STATEMENT 2024

fundamental prerequisite for conducting our business in the chemical industry in a

sustainable manner. Sustainability Policy is aligned with the Kemira Code of Conduct and

other internal Kemira policies including the Product Stewardship Policy, Recruitment Policy

and the Sourcing and Procurement Policy. The key contents, scope, process, accountability

and availability of the policies is described in the G1 Business Conduct section, under

Corporate Culture and Business Conduct Policies.

Kemira’s sustainability approach is also contributing to the risk management process, as

defined in the Kemira Group Risk Management Policy. The Sourcing and Procurement Policy

defines how sustainability must be taken into account in sourcing, procurement and supplier

management activities as well as requirements for the upstream value chain. Kemira’s

Product Stewardship Policy ensures that Kemira products can be safely used by Kemira's

stakeholders, are safe for the environment and that chemical risks and their impacts are

incorporated into decision making relating to Kemira's operations, strategy implementation

and long-term strategic development.

Kemira conducts chemical hazard assessments which are prepared for raw materials,

products, intermediates and process aids and are incorporated in the change management

process. Product stewardship provides a platform that helps Kemira to identify concerns

related to specific chemicals and their hazards at an early stage and to manage those risks

along the value chain. Kemira is committed to minimizing the use of substances of concern or

substances of very high concern when selecting raw materials for product development and

replacing raw materials in product recipes.

ACTIONS RELATED TO POLLUTION

Actions to prevent environmental incidents in our own operations

Kemira's certified Integrated Management System includes the development of global and

site-level standards and procedures to comply with permit and regulatory requirements

associated with pollution. Kemira continuously improves performance to mitigate negative

impacts related to pollution to air, water and soil, including preventative actions. For the

minimum requirements to prevent environmental incidents Kemira has spill prevention,

process safety and maintenance standards. All incidents resulting in impacts to air, water and

soil and the related documentation, on incident investigations for example, are reported in

Kemira's incident reporting system. Kemira's management systems are audited both

internally and externally to evaluate conformance against the latest ISO 9001, ISO 14001 and

ISO 45001 standards.

Kemira's sites develop local procedures to implement actions required by their permits and

the underlying regulations. All Kemira sites have environmental permits and pollution control

technology compliant with Best Available Techniques (BAT) requirements. This includes

scrubbers and baghouses for air emissions, and onsite wastewater treatment or connection

to third-party wastewater treatment, to comply with applicable environmental requirements.

In addition to management system audits, Kemira has a third-party legal compliance audit

program. Third-party EHS legal compliance audits are conducted annually, by a sampling of

sites. Verification of EHS legal compliance is also provided annually by all sites, as part of the

environmental performance data collection and reporting processes. Kemira’s robust

management system requires all sites and auditors to report spills as well as non-compliance

cases to Kemira's EHSQ function, using the internal incident reporting tool.

For emergency situations, Kemira applies precautionary principles and has different

mechanisms, processes and procedures to identify, prevent and mitigate negative impacts.

Mitigation measures include emergency response and crisis management processes which

are first response activities, in case of incidents and accidents but also in case of business

interruptions. To ensure continuous improvements, we conduct a root cause analysis to

identify both improvements and corrective actions. Kemira has an Emergency Planning and

Preparedness standard which establishes sufficient emergency response capability to

protect personnel, equipment and the community during emergencies. The primary focus of

the emergency response is the safe containment of an incident and the minimization of

effects upon employees and the surrounding community.

In addition to the Integrated Management System and EHS legal compliance auditing

programs and several site level technical improvements, Kemira launched a Global Safety

Training Program for all shop floor supervisors in 2024. The objective of the program is to

improve safety culture at the manufacturing sites on shop floor level, from EHSQ Managers to

supervisors and from supervisors to employees. Shift supervisors at all manufacturing sites

were trained by the end of 2024. The program focuses on all safety topics including spill

prevention and environmental compliance. In 2024 Kemira also continued the Transportation

Safety enhancement program in EMEA that aims to improve the daily safety of Kemira’s

transportation operations through enhanced processes and aligned roles and responsibilities

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SUSTAINABILITY STATEMENT 2024

across the organization. The focus is on shipment document compliance, delivery operations

and manufacturing site operations, including spill prevention concerning the carriers. The

program was started in 2023 and it is expected to continue until mid 2025.

Actions to manage environmental liabilities

Kemira has environmental liabilities related to former activities. Financial environmental

provisions for the costs of remediation work have been made in cases where it has been

possible to measure Kemira's liability for soil, groundwater or sediment contamination and

any post-treatment or post-monitoring obligations. More detailed information on these

environmental provisions can be found in the Financial statement note 4.6 Provisions. Kemira

has a process to manage and to review the status of environmental liabilities. The status of

environmental projects and associated provisions is reviewed quarterly by the EHSQ and

Finance & Accounting functions. Kemira has ongoing remediation projects to manage

environmental liabilities. In cases of mergers and acquisitions, the assessment of potential

liabilities is always carried out in accordance with Kemira's Environmental Due Diligence

process.

The 2024 key actions to manage environmental liabilities included continuation of a soil and

landfill remediation project at a former manufacturing site located in Vaasa, Finland. Soil

remediation started in 2022. The site was historically contaminated with heavy metals and

pesticides. In addition to the project in Vaasa, Kemira also conducted some smaller scale

remediation projects in 2024.

Actions to manage pollution to air, water and soil in upstream value chain

For actions to manage pollution to air, water and soil in the upstream value chain see actions

disclosed in the E5 Resource Use and Circular Economy section.

Actions to manage substances of concern and very high concern

Kemira actively monitors its portfolio, including raw materials, intermediates and process

chemicals for substances of concern and substances of very high concern, in accordance with

our priority substance management process. We prepare management plans for these priority

substances aimed at defining the specific risks associated with each substance, examining

options for managing these specific risks and formulating action plans for preferred options.

These options to mitigate risks may include, for example, substitution, phase-out or limiting

exposure. Possible mitigation actions could include delivering more sustainable products by

replacing substances of concern when selecting raw materials for product development with

Research and Development.

TARGETS RELATED TO POLLUTION

Kemira has several indicators that are followed internally for impacts, risks and opportunities

related to pollution, however these are not defined as in ESRS. Kemira continues to evaluate

and develop these indicators.

As part of the Integrated Management System Kemira has internal indicators and associated

targets for its own operations related to pollution that include:

• Number of environmental incidents (ENV);

• Number of loss of primary containment incidents (LOPC);

• Number of reportable process safety incidents (RPSI); and

• Number of environmental operating conditions (EOC)

Kemira is also further developing its Life Cycle Assessment (LCA) capabilities. Kemira intends

to use this data for developing future pollution related indicators and metrics for its direct

and upstream value chain operations.

METRICS RELATED TO POLLUTION

POLLUTION TO AIR, WATER AND SOIL

Kemira collects data centrally and annually on emissions of air pollutants and effluent from all

manufacturing sites. The t otal emissions and amounts of each pollutant emitted to air and

water were in accordance with ESRS E2-4. In 2024, Kemira had no significant emissions to

soil.


Emissions to air, water and land by pollutant, tonnes	2024	2023
Ammonia (to air)	8.7	12.5
Non-methane volatile organic compounds (to air) ¹⁾	581.9	569.4

1) Cutting oil emission at a site located in the UK where cutting oil is classified as volatile organic compound.

The emissions to air from own operations are estimated based on direct measurements,

published emission factors, mass balance or engineering calculations. Measurement

methodologies, for example if based on continuous measurements or campaigns, vary

KEMIRA 2024 | FINANCIAL STATEMENTS | 59

SUSTAINABILITY STATEMENT 2024

between manufacturing sites. The e nvironmental permits of all sites where emissions exceed

the thresholds stated in the European Pollutant Release and Transfer Register (E-PRTR)

regulation Annex II allow emission of these substances. The emissions reported in the tables

represent the consolidated amount from all Kemira sites where the threshold is exceeded.

SUBSTANCES OF CONCERN AND SUBSTANCES OF VERY HIGH CONCERN

Volumes of substances of concern and substances of very high concern in raw materials,

intermediates or Kemira products are calculated based on the material compositions

interlinked to sourcing, production and sales data maintained in Kemira's system. Kemira

does not centrally collect data on amounts of substances of concern and very high concern

that leave facilities as emissions. Collection of the data is planned within the next two years.


Substances of very high concern, tonnes	2024
Total amount of SVHC that are generated or used during production or that are procured	13,945
Carcinogenic (Article 57a)	11,411
Persistent, Bioaccumulative and Toxic (Article 57d)	8
Toxic for reproduction (Article 57c)	1,959
Endocrine disrupting properties (Article 57(f) - environment)	21
Respiratory sensitising properties (Article 57(f) - human health)	546
Total amount of SVHC that leave facilities as emission, as products, or as part of products or services	3,526
Total amount of SVHC that leave facilities as part of products	739
Carcinogenic (Article 57a)	666
Endocrine disrupting properties (Article 57(f) - environment)	2
Respiratory sensitising properties (Article 57(f) - human health)	71
Total amount of SVHC that leave facilities as products	2,787
Carcinogenic (Article 57a)	2,469
Respiratory sensitising properties (Article 57(f) - human health)	318


Substances of concern, tonnes	2024
Total amount of substances of concern that are generated or used during production or that are procured	214,052
Carcinogenicity categories 1 and 2	61,100
Germ cell mutagenicity categories 1 and 2	2,201
Reproductive toxicity categories 1 and 2	5,524
Respiratory sensitisation category 1	11,713
Skin sensitisation category 1	125,715
Chronic hazards to the aquatic environment categories 1 to 4	1,788
Specific target organ toxicity, repeated exposure categories 1 and 2	5,200
Specific target organ toxicity, single exposure categories 1 and 2	811
Total amount of substances of concern that leave facilities as emission, as products, or as part of products or services	74,814
Total amount of substances of concern that leave facilities as part of products	20,730
Carcinogenicity categories 1 and 2	304
Reproductive toxicity categories 1 and 2	971
Skin sensitisation category 1	13,890
Chronic hazards to the aquatic environment categories 1 to 4	671
Specific target organ toxicity, repeated exposure categories 1 and 2	4,859
Specific target organ toxicity, single exposure categories 1 and 2	35
Total amount of substances of concern that leave facilities as products	54,084
Germ cell mutagenicity categories 1 and 2	1,155
Reproductive toxicity categories 1 and 2	1,655
Skin sensitisation category 1	50,911
Specific target organ toxicity, repeated exposure categories 1 and 2	363

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SUSTAINABILITY STATEMENT 2024

The Group's reporting principles

Kemira's data on pollution to air, water and soil in own operations is limited to manufacturing

sites with environmental permits. The following Kemira operations are excluded:

▪ Kemira's R&D centers located in Atlanta, USA; Shanghai, China; and Espoo, Finland.

• Sites that have limited emissions to air, water and soil and no environmental permits

and are not required to report emissions of air, water and soil to authorities.

▪ Kemira's corporate headquarters in Helsinki, Finland and other corporate offices, sales

offices and warehouses, if different from the sites' locations.

• Sites that have limited emissions to air, water and soil and no environmental permits

and are not required to report emissions of air, water and soil to authorities.

▪ Tolling and contract manufacturers:

• In 2024, less than 1% of Kemira sales volumes (in terms of quantity) came from tolling

plants and contract manufacturers. On this basis pollution to air, water and soil at

toll and contract manufacturers is assumed to be limited and not material.

Kemira has no significant operational expenditures (OpEx) or capital expenditures (CapEx) as

defined in ESRS to report related to implementations of the actions.

Measurements of the metrics are not validated by an external body other than Ernst &

Young Oy through assurance.

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SUSTAINABILITY STATEMENT 2024

E3 Water and marine resources

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO WATER AND MARINE RESOURCES


Material impacts, risks and opportunities		Position in the value chain	Key management areas of processes and policies
Water withdrawals, consumption and use
●	Positive impacts through circular water and water management solutions offered for Kemira's customers. Supporting customers to reduce the use of water in industrial processes. Amplified through digital solutions.	↘ Downstream	• Water solutions is the largest business unit at Kemira following change in operational model. Kemira has strong growth ambitions in water. The focus to be on chemistry solutions and digital services for water-intensive industries. R&D projects in water solutions with the aim to reduce water consumption. • Entry into new water solutions and markets through acquisition of micropollutant removal technologies • Partnering with value chain operators to develop technologies to recover nutrients from wastewater sludge, e.g. phosphorous removal • Solutions for sludge-to-biogas with biogas yield improvement technologies, increasing the energy self-sufficiency of wastewater facilities
●	High water consumption in the whole value chain causes negative impact.	↗ Upstream ● Own operations ↘ Downstream	• Kemira serves customers in water-intensive industries by providing chemistry and digital services • Kemira's Code of Conduct for Business Partners lays out expectations to suppliers for reducing environmental impacts. Risks are evaluated as part of supplier sustainability assessments. Supplier audits are carried out to identify risks related to water and marine resources management. • Freshwater use and consumption in own operations is managed through the Integrated Management System and Nature Stewardship program and associated processes • Based on an internal study on biodiversity impacts and dependencies, a roadmap was created to manage identified material negative impact concerning high water consumption and water discharge part of upstream and downstream value chain
□	Supporting customers in reducing the use of water in industrial processes and increasing the reuse of wastewater with Kemira's products create significant opportunities.	↘ Downstream
Water discharges in water bodies and ocean
●	Water discharge in upstream and downstream value chain (water-intensive industries)	↗ Upstream ↘ Downstream	• Kemira's Code of Conduct for Business Partners lays out expectations to supplier for reducing environmental impacts. Water and marine resource related risks are evaluated as a part of supplier sustainability assessments. Supplier audits are carried out to identify risks related to water and marine resources management. • Kemira is the only manufacturer to offer a full product portfolio of coagulants, polyacrylamide polymers, process chemicals, and other water treatment chemicals, along with smart digital technologies to provide solutions for wastewater, drinking water, raw water and sludge/biogas applications. • Active influencing in the EU and other regions for stricter water regulations, promoting importance of water and wastewater treatment solutions with active communication on the topic.
●	Significant impacts through wastewater management solutions. Improving circularity of water by reusing wastewater as a source of energy in customers’ processes.	↘ Downstream
□ △	Tightening regulation and global initiatives towards water and wastewater management increase demand for chemicals. Increasing regulation can also be seen as a risk of decreasing demand for Kemira’s products and solutions.	↘ Downstream
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

Identification and assessment of material impacts, risks and opportunities

Kemira has identified material impacts, risks and opportunities for water and marine

resources in the materiality assessment which is described in the General disclosure section

under Material impacts, risks and opportunities.

POLICIES RELATED TO WATER AND MARINE RESOURCES

Kemira has Sustainability Policy Commitments that include commitments to protect the

environment, reduce emissions and improve energy efficiency, with approaches to reduce

greenhouse gas emissions, releases to air, water and soil and to reduce water and material

use and waste generation through circular economy principles, to improve energy efficiency

and energy sourcing management and to protect biodiversity through sustainable raw

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SUSTAINABILITY STATEMENT 2024

material sourcing programs, reducing waste and pollution in our operations. The commitment

to reduce water use includes material water consumption in areas of water risk and water

stress areas.

The Sustainability Policy Commitment states that Kemira will provide products for wastewater

treatment that enable the availability of clean and high-quality water to people and nature,

including water bodies. How the policy is implemented with regard to managing the use and

sourcing of water and marine resources and the prevention and abatement of water pollution

resulting from our own activities is described under the Actions related to water and marine

resources and E2 Pollution section.

With our Sustainability Policy and Nature Stewardship program, Kemira strives to minimize

water consumption and minimize the negative impact of water discharge activities on the

quality of receiving water bodies in our whole value chain. Product and service design

considerations and practices related to addressing water-related issues are covered in

Kemira's Product Stewardship Policy and program. The key contents, scope, process,

accountability and availability of the policies is described in the G1 Business Conduct section

under Corporate Culture and Business Conduct Policies and in the Stewardship program under

the E2 Pollution section.

ACTIONS RELATED TO WATER AND MARINE RESOURCES

Actions to manage water consumption in own operations

Through both Kemira's environmental management system that applies ISO 14001 standards

and Kemira's Nature Stewardship program we are continuously evaluating opportunities and

implementing actions to decrease water withdrawal, consumption, discharge and associated

impacts through water recycling and reuse as well as through process redesign and

optimization. As an additional measure to reduce freshwater consumption, Kemira will

increase the use of recycled water from third-party water suppliers at two sites located in

high water stress areas.

In addition to continuous improvement at sites, Kemira has an action plan for improvement of

water accounting, implementation of water impact assessments to be included in existing

internal processes, development of the water related risk assessment process and general

improvement of water stewardship in the company driven by the CDP Water Security

framework.

The project to improve water accounting across the company was continued through a

systematic review of water balances of all manufacturing sites and centralized reporting in

2024. Based on the review, critical water flow measurements were installed to reduce

uncertainties in water data, including in water consumption data. The water balances of all

manufacturing sites were reviewed and critical measurements were installed by the end of

2024. Through improved data quality and existing internal processes, Kemira centrally collects

information on identified opportunities and projects across the company, including those for

reduction of water consumption. This information will be used in 2025 to update the water

stewardship action plan for the upcoming years, with a special focus on high water stress

areas and other areas at water risk.

Water withdrawal, consumption and discharge are considered in Kemira's internal decision

making processes. In cases of mergers and acquisitions the impact of changes in water

consumption and potential locations in water stress areas are included in Kemira's

Environmental Due Diligence (EDD) assessment. The assessment also includes Phase I

Environmental Site Assessment (ESA) procedures. Water consumption is also assessed as

part of CapEx investments exceeding EUR 100,000 and the investment impact on water

consumption is recorded in Kemira's reporting tool. Kemira's New Product Development

process ensures that successful projects demonstrate both sustainability and business

benefits, with every decision to proceed to product launch. This process includes the

assessment of water consumption.

Kemira's water consumption has decreased significantly in its own operations in recent years,

mostly due to decrease in the proportion of water-intensive products. Total water

consumption has decreased by 26% (21%) and water consumption intensity by 33% (38%)

since 2019.

Actions to manage water in the upstream and downstream value chain

Kemira has announced in 2024 a new operating model that has three business units to better

meet our profitable growth ambitions. The planned changes aim to increase customer

centricity, strategic focus, speed of delivery and to accelerate growth and shareholder value

creation. Water Solutions will become Kemira’s largest business unit, reflecting Kemira’s

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ambitions to significantly grow the water business both organically and inorganically. Further

information on Kemira's new operating model can be found in the Board of Directors' review.

Water is one of the most important and material topics for Kemira. Kemira’s strategic

business ambition is to double water solutions revenue, which is well aligned with the

identified material topics. Our chemistry solutions are an essential part of low carbon

footprint water treatment processes and address ever growing global water challenges to

secure water supply and wastewater treatment. Kemira’s primary business focus and revenue

growth ambition correlates strongly with these positive environmental impacts, since Kemira

solutions help customers to treat, re-use and recycle water. Key examples include removing

impurities like carbon, phosphorous and nitrogen from water and improving water efficiencies

by using less water. Kemira strategy on water solutions is driven by challenges like climate

change, population growth, resource scarcity and the increasing need for water resilience.

Kemira offers chemistry solutions and digital services for applications like wastewater,

industrial raw- and process water, drinking water, sludge, biogas and water disinfection. This

is accomplished with a product and solution portfolio of polymers, coagulants, process

chemicals and smart digital technologies. The chemistry binds and extracts impurities from

water and wastewater and is used as a dewatering agent for semi-finished or finished

products. Digital solutions are used to improve process efficiencies. Kemira’s strategic focus

on water intensive industries means that both new organic and inorganic growth

opportunities are under continuous development. The Kemira solutions are applied to three

main customers groups:

• Cities’ and municipalities’ water treatment plants, where Kemira helps ensure citizens have

access to clean, safe and affordable drinking water

• Municipalities and industries where Kemira ensures that discharged wastewater meets

environmental permit standards, reducing the load on local water bodies

• Water-intensive industries where Kemira helps use less water and make processes more

efficient, by enabling the use of recycled water rather than freshwater in processes, for

example.

More information on Kemira's Industry & Water segment can be found in the Financial

Statements (Board of Directors' review Financial performance 2024 and Segments, in note 2.1.

Segment information).

In 2023 and 2024, Kemira invested in expanding coagulant capacity in Norway, Spain and the

UK which helped to manage our risks and opportunities concerning tightening regulations.

These coagulant investments support Kemira’s ambition to grow in water and sustainable

solutions and offer added security of supply to Kemira’s customers. They also enable Kemira

to better support customers' sustainability efforts. The demand for coagulants in Europe is

expected to grow following tightening regulation.

Kemira is active in research and development and has several water solution focus areas such

as, for example, renewable water treatment growth, phosphorus recovery from wastewater

and micropollutants removal from drinking water. in 2024, Kemira also completed the

acquisition to purchase Norit's UK reactivation business, this is a first step for Kemira in

entering the activated carbon market for micropollutants removal.

Kemira is expanding its water treatment offering to include activated carbon in water

treatment applications. This is the most common technology to remove odor and taste in

drinking water, as well as micropollutants including per- and polyfluoroalkyl

substances (PFAS). Micropollutant removal is expected to become more relevant for water

and wastewater treatment plants due to growing concern for both consumer health and

environmental safety. In addition, the requirements for PFA removal from drinking water and

micropollutant removal from wastewater have been introduced in recent EU regulation

updates.

Phosphorus in wastewater is a major environmental challenge and causes overfertilization of

surface waters if it is not removed properly. At the same time, phosphorus is a key nutrient

needed for agriculture and many different industrial applications. The European Commission

has repeatedly listed phosphorus as one of the critical raw materials on the EU Critical Raw

Materials List.

Kemira uses the EcoVadis platform to assess the sustainability of its suppliers. Water

management is included as one criterion on the EcoVadis platform. On EcoVadis, suppliers

are requested to meet certain standards and to continuously improve in the area of the

environment including in environmental compliance, waste, air emissions, climate change,

water and groundwater, wastewater, energy, nuisance (noise and odor), land use, biodiversity,

soil and hazardous chemicals.

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SUSTAINABILITY STATEMENT 2024

Kemira's sustainability and circular economy strategies also set the direction for identifying

e.g. circular economy related opportunities in the water business, with relevant value chain

partners. Kemira does not currently have policy commitments for its upstream water impacts,

this is planned for development during the upcoming years.

The management of water and marine resources in our own operations and value chain are

included in Kemira's Nature Stewardship program which covers the management of water,

waste and biodiversity. The Nature Stewardship program reports to the Sustainability

Steering Team. This ensures that specific cross-functional resources, roles and

responsibilities have been assigned which in turn help to ensure the effective implementation

and reporting of strategies related to water and marine resources.

In 2021, Kemira joined the CEO Water Mandate and, in 2023, the UN Global Compact Forward

Faster initiative, to solidify our commitment to world class water management.

TARGETS RELATED TO WATER AND MARINE RESOURCES

Kemira has set internal water targets to improve water management in our own operations.

Kemira also has water related indicators that are followed internally for impacts, risks and

opportunities related to water. These indicators are not currently defined as in the ESRS.

Kemira will continue the evaluation of these internal indicators in the following years. Kemira

is also preparing to set water related targets for downstream operations since Kemira's

ambition is to double its water business.

Carbon Disclosure Project (CDP) Water Security management target

In 2021, Kemira introduced a voluntary water target to improve our water management to

Leadership level, based on the Carbon Disclosure (CDP) Project Water Security scoring

methodology, by the end of 2025 (score A/A-). Kemira has retained a B score (Management

level) since the first full reporting questionnaire in 2021, even as the scoring criteria have been

tightened in the intervening years. The scoring reports show that Kemira's overall water

management has improved every year and that Kemira ranks above European, Global and

Chemical industry averages (all score C). The objective of the CDP Management target is to

improve our water stewardship at all levels and throughout the whole value chain and to show

our customers and other stakeholders that our water management is at a high level.

Management of impacts, risks and opportunities related to areas at water risk, responsible

management of marine resources and reduction of water consumption are included in the

CDP Water Security scoring criteria.

Kemira has 58 manufacturing sites, varying from small and simple sites with limited water

consumption to complex sites with several production lines. 12 sites are located in water

stress areas. The materiality of water and marine resources related impacts, risks and

opportunities therefore vary from site to site. Manufacturing sites set their own site specific

water targets based on the results of site level materiality assessments, in accordance with

Kemira’s management system. Not all sites have water and marine resources related targets

as not all sites have identified water and marine related impacts as material. For example, at

Kemira’s coagulant sites water consumption is typically low and at many coagulant sites most

or all process wastewater is recycled back to the process. Typically, site level targets include

a reduction in water consumption and/or an improvement in wastewater discharge quality.

Kemira is currently evaluating global level water target options to reflect this variance and is

planning to set a new water target for its own operations.

Kemira's water targets are overseen by the Sustainability Steering Team. Specific roles and

responsibilities have been assigned to ensure effective implementation and reporting of our

water strategies.

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SUSTAINABILITY STATEMENT 2024

METRICS RELATED TO WATER AND MARINE

RESOURCES

WATER SOLUTIONS

Kemira's goal is to expand in water solutions. Kemira uses

sustainability-driven key figures to indicate expansion in

business, in addition to revenue and other financial metrics.

Water treatment solutions and cooperation are an important

part of Kemira's business and one metric to help evaluate

this is Water treated with the help of Kemira chemistry. This

metric is calculated annually, based on the sales of coagulant

chemistry, and it gives an estimate of how Kemira's solutions

positively impact the treating of water. In 2024, it was

estimated that Kemira helped to treat 21 billion cubic meters

of water, which can be compared to the water consumption

of approximately 370 million Europeans and North

Americans, based on regional water consumption data. Only

coagulants revenue has been used to calculate the financial

opportunity and the water handprint.

WATER CONSUMPTION


Water consumption and intensity	2024	2023
Total water consumption, m3	4,843,124.0	5,194,856.0
Water consumption in areas at water risk, m3 ¹⁾	599,507.0	584,531.0
Water recycled and reused, m3	982,132.0	1,014,784.0
Water intensity ratio 2)	1,642.8	1,535.3

1) Includes high-water stress areas

2) Water consumption m3 per million EUR net revenue

Water (recycled and reused) is defined as water and

wastewater (treated or untreated) that has been used more

than once before being discharged from the undertaking’s or

shared facility’s boundary, so that water demand is reduced.

This may be in the same process (recycled) or in a different

process within the same facility (own or shared with other

undertakings) or in another of the undertaking’s facilities

(reused). The calculation for recycled and reused water is

often estimated due to the challenges in measuring all

streams directed to recycling and therefore the data

contains uncertainty. Most recycled water is steam

condensate. The calculation for the volume of steam

condensate is normally based on steam flow measurements

which limits uncertainty.

Water consumption is defined as the amount of water drawn

into the boundaries of Kemira's manufacturing sites and not

DIAGRAM OF WATERFLOWS

discharged back to the water environment or to a third party

over the course of the reporting period. Water consumption

is calculated as total water withdrawals minus total water

discharges. To ensure calculated water consumption data

(total water withdrawals minus total water discharges)

quality and that sites report full water balances in Kemira's

sustainability reporting system, all sites are required to

report water consumption separately, using the following

breakdown: evaporated cooling water, water to products,

water to waste, other evaporation and leakage/storage/

calculation and calibration error/production losses.

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SUSTAINABILITY STATEMENT 2024

The Group's reporting principles

Kemira's data for water and marine resources in our own operations is limited to

manufacturing sites with environmental permits. The following Kemira operations are

excluded:

▪ Kemira's R&D centers are located in Atlanta, USA; Shanghai, China; and Espoo, Finland.

In 2024, the total water consumption in R&D centers remained on the same level as in

2023 or was significantly below 1% with no changes in operations, and it is not

considered material.

▪ Kemira's corporate headquarters in Helsinki, Finland and other corporate offices, sales

offices and warehouses, if different from the sites' locations. Total water consumption

at these facilities is well below 1% of Kemira's total water consumption.

▪ In 2024, less than 1% of Kemira sales volumes (in terms of quantity) came from tolling

plants and contract manufacturers. On this basis, water consumption at toll and

contract manufacturers is expected to be limited and not material.

▪ Kemira has former production sites with environmental liabilities but with no active

manufacturing operations and no significant water consumption. Kemira's activity at

these sites includes environmental monitoring and remediation measures. Site

operation at the closed sites is limited to remediation and environmental monitoring

operations, with no significant water consumption.

Calculated water consumption is compared to the reported data. The expectation for the

sites is that the difference between the calculated and reported water consumption will be

no more than ±5%. Water withdrawals and water discharges are measured at most sites. In

case some stream in the water balances is not measured and if it cannot be calculated then

it will be estimated as a final option.

Kemira has no significant operational expenditures (OpEx) or capital expenditures (CapEx) as

defined in ESRS to report related to implementations of the actions.

The measurements of the metrics are not validated by an external body other than Ernst &

Young Oy, through assurance.

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SUSTAINABILITY STATEMENT 2024

E4 Biodiversity and ecosystems

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO BIODIVERSITY


Material impacts, risks and opportunities		Position in the value chain	Key management areas of processes and policies
Direct impact drivers of biodiversity loss
●	Use of resources, land use change through resources extraction, pollution and terrestrial changes or degradation, possibilities for discharges to soil and light or noise disturbances in the upstream value chain.	↗ Upstream		• Through the Nature Stewardship program and based on the internal study on biodiversity impacts and dependencies, a roadmap was created to manage the identified material negative impacts in the upstream value chain. • Water solutions is the largest business unit at Kemira following change in operational model. Kemira has strong growth ambitions in water. The focus to be on chemistry solutions and digital services for water- intensive industries. • R&D projects in water solutions with the aim to reduce water consumption. • Entry into new water solutions and markets through acquisition of micropollutant removal technologies • Partnering with value chain operators to develop technologies to recover nutrients from wastewater sludge, e.g. phosphorous removal solutions for sludge-to-biogas with biogas yield improvement technologies, increasing the energy self-sufficiency of wastewater facilities
●	Removal of hazardous chemicals across all customer applications (e.g., food packaging, wastewater) in the downstream value chain.	↘ Downstream
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

Identification and assessment of material impacts, risks and opportunities

Kemira has identified material impacts, risks and opportunities for Biodiversity in the

materiality assessment which is described in the General disclosure section under Material

impacts, risks and opportunities. Kemira's approach to conducting consultations with affected

communities on sustainability assessments is described in the General disclosure section

under Identification of material impacts, risks and opportunities for sustainability topics.

Kemira has not identified actual or potential material impacts, risks or opportunities for

biodiversity and ecosystems at its own manufacturing site locations. Material negative

impacts with regard to land degradation, desertification or soil sealing, as well as operations

that affect threatened species were not identified.

Strategy and transition plan

Kemira initiated an internal evaluation of its direct impacts, dependencies, risks and

opportunities related to biodiversity and ecosystems at the end of 2021. The assessment of

indirect impacts, dependencies, risks and opportunities began in 2023. As biodiversity and

ecosystem related risks are expected to increase in the future, Kemira will, in the next two

years, develop a strategic plan for the adaptation of its business model and strategy in

response to the ongoing assessment findings. An initial, high-level resilience assessment of

Kemira’s business model and strategy, relative to biodiversity and ecosystems-related

physical and transition risks, was conducted in 2023. Systemic risks were not evaluated as

part of the assessment. The scope of the resilience analysis included both Kemira’s direct and

indirect impacts, dependencies, risks and opportunities in the upstream and downstream

value chain and in own operations. The results of the analysis provided an outlook on the likely

role of biodiversity in Kemira’s operations up to 10 years into the future and these were

communicated to Kemira’s Board of Directors and Management Board.

As sustainability is integrated into Kemira’s strategy, Kemira’s current business model is

considered resilient to biodiversity and ecosystems-related risks. The key assumptions

indicate that the most significant indirect impact in the future is likely to occur within the

upstream value chain, associated with the utilization of both conventional and renewable raw

materials. As customer awareness on the topic of biodiversity is rising, Kemira has a positive

role in mitigating biodiversity impacts in its downstream operations through its focus on

improved customer efficiency and water treatment solutions.

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SUSTAINABILITY STATEMENT 2024

POLICIES RELATED TO BIODIVERSITY

Through Kemira’s Sustainability Policy and Nature Stewardship program, Kemira is committed

to reducing negative impacts on biodiversity and ecosystems and to promoting the

responsible and efficient use of natural resources in the whole value chain. Kemira’s

Sustainability Policy incorporates the evaluation of near-term and long-term risks and

opportunities related to climate change mitigation and adaptation in own operations and the

value chain. The Sustainability Policy does not cover all material dependencies nor material,

physical and transition risks and opportunities related to biodiversity. Kemira’s Sustainability

Policy Commitment document includes a pledge to protect the environment through energy

efficiency and energy sourcing management. This includes reducing greenhouse gas

emissions and releases to air, water and soil. In addition, Kemira aims to minimize water and

material use and waste generation by applying circular economy principles. To protect

biodiversity, Kemira commits to sustainable raw material sourcing programs, reducing waste

generation and pollution in its operations and to providing wastewater treatment solutions to

customers.

Kemira's Sourcing and Procurement Policy defines how sustainability must be taken into

account in sourcing, procurement and supplier management activities and requirements in

the upstream value chain. Kemira’s Product Stewardship Policy ensures that Kemira products

can be safely used by Kemira's stakeholders and are safe for the environment. Kemira’s

policies do not fully cover traceability of products, components and raw materials with

significant actual or potential impacts on biodiversity and ecosystems along the value chain.

Kemira’s approach is to ethically enhance positive impacts across its entire value chain,

involving Kemira’s people, business partners, the environment and surrounding communities.

The Sustainability Policy does not address the social consequences of biodiversity and

ecosystems-related impacts. The Sustainability Policy is aligned with the Kemira Code of

Conduct and other internal Kemira policies e.g. the Nature Stewardship Policy, Product

Stewardship Policy, Recruitment Policy and the Sourcing and Procurement Policy. The key

contents, scope, process, accountability and availability of the policies is described in the G1

Business Conduct section under Corporate Culture and Business Conduct Policies. Kemira has

not adopted separate biodiversity and ecosystem protection policies covering operational

sites owned, leased or managed in or near a biodiversity sensitive area nor the following:

policies related to sustainable land / agriculture practices, sustainable oceans / seas

practices or policies to address deforestation.

Kemira initiated an assessment of actual and potential impacts to biodiversity and

ecosystems in the upstream value chain for Tier 1 suppliers in 2023. The assessment was

conducted to identify major, indirect nature impacts and dependencies in Kemira’s Pulp &

Paper, Polymers and Coagulants product lines. The work was carried out in accordance with

the Step 1a&b guidelines of the Science Based Targets Network's (SBTN) Science-Based-

Targets for nature, and both primary and secondary data sources were utilized. The results

identified that the main, indirect biodiversity impacts in the upstream value chain are caused

through terrestrial ecosystem use, water use, GHG emissions and pollution.

ACTIONS RELATED TO BIODIVERSITY

Kemira has not used biodiversity offsets in its action plans and does not plan to do so in the

upcoming years . Kemira has not incorporated local and indigenous knowledge and nature-

based solutions into its biodiversity and ecosystems-related actions and does not plan to do

so in the next two years . Kemira has not concluded that it is necessary to implement

biodiversity loss mitigation measures.

TARGETS RELATED TO BIODIVERSITY

Kemira has indicators that are followed internally for impacts, risks and opportunities related

to Biodiversity and ecosystems. These targets are not defined as in ESRS. Kemira will

continue the evaluation of these indicators in the following years.

IMPACTS METRICS RELATED TO BIODIVERSITY AND ECOSYSTEMS

CHANGE

Kemira has not yet established metrics related to material impacts, risks and opportunities in

the upstream and downstream value chain related to biodiversity and ecosystems. Kemira is

planning to establish such metrics in the upcoming years, based on an impacts,

dependencies, risks and opportunities assessment. Kemira’s Nature Stewardship program

sets out the process for development of the policies and actions related to material

biodiversity impacts, risks and opportunities. The program’s ambition is to establish, at a

minimum, internal quantitative indicators to track the progress of such policies and actions.

The base period from which progress is measured will be determined once the quantitative

indicators are established. Kemira is also further developing its Product Carbon Footprint

(PCF) and Life Cycle Assessment (LCA) capabilities. More information can be found under E2

Actions related to Pollution.

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SUSTAINABILITY STATEMENT 2024

Kemira has not identified manufacturing sites located in or near biodiversity-sensitive areas

that it is negatively affecting. Kemira uses the Integrated Biodiversity Assessment Tool (IBAT)

and the WWF Risk Filter Suite (Water Risk Filter and Biodiversity Risk Filter) to monitor priority

sites in its own operations that are in proximity to protected areas and key biodiversity areas.

An assessment is conducted annually for existing sites and on a basis as required for site

acquisitions. Kemira uses the number of sites in proximity to biodiversity areas as an indicator

of possible changes in the classification of the land surrounding the manufacturing sites and

to understand whether Kemira may have a negative impact on such areas. In 2024, Kemira

had 10 sites located in and/or near protected areas and key biodiversity areas. Kemira’s

manufacturing sites (58) have environmental permits, are located on industrial land and utilize

already existing infrastructure. Environmental impacts and risks, including biodiversity related

impacts and risks, are initially assessed as part of the environmental permitting process of

the sites and the Environmental Impacts Assessments (EIA) at the sites where EIA is required.

Based on the environmental impact assessments conducted as part of the environmental

permitting of the sites, Kemira’s manufacturing sites do not negatively affect biodiversity-

sensitive areas.

The Group's reporting principles

Measurements of the metrics are not validated by an external body other than Ernst &

Young Oy, through assurance.

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SUSTAINABILITY STATEMENT 2024

E5 Resource use and circular economy

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY


Material impacts, risks and opportunities		Position in the value chain	Key management areas of processes and policies
Resource inflows including resource use
●	Resource-intensive operations relying partly on non-recycled and non- renewable raw materials	↗ Upstream ● Own operations	• Alignment between business strategy and sustainability strategy, commitments and targets, increasing the amount of renewable and recycled materials in the product portfolio. Utilizing side streams, by-products and wastes from other industries to manufacture products. • Kemira focuses on development of new renewable raw materials and has a target to grow renewable solutions. R&D sustainability assessment included with circularity aspects that are qualitatively assessed in the whole value chain. • Value chain collaborations with suppliers to develop new product solutions for customers • Strategic sourcing initiatives and assessments to secure renewable and low product carbon footprint raw materials • Participation in and utilization of well known certification systems to improve traceability of the origin of raw materials • Influencing activities to promote renewable solutions as alternatives to fossil feedstocks through memberships in association and collaborations, e.g. the Renewable Carbon Initiative (EU)
●	Using own and industrial partners’ by-products and landfill waste as raw materials in production (waste reuse)	↗ Upstream ● Own operations
□	Finding alternatives for fossil-based raw materials generates demand for Kemira’s renewable business portfolio	↗ Upstream ● Own operations ↘ Downstream
Resource outflows related to products and services
○	Significant and growing product portfolio focusing on recyclability. Developing products and solutions that improve recyclability and biodegradability.	● Own operations ↘ Downstream	• Kemira's strategic focus on new business creation in circularity-driven applications. Chemistry and digital services to optimize customers' process efficiencies, creating opportunities for customers to reduce raw materials, energy and water consumption and prevent emissions and waste generation. • Kemira offers customers products and solutions with non-virgin origin • Prolonging the lifetime of customer products by increased durability and recyclability or biodegradability enhancing solutions • Developing and piloting technologies to recover resources from customer processes, e.g. phosphorous removal in wastewater treatment and increasing biogas yields for increased energy self-sufficiency • Value chain collaboration with Kemira's customers to create new solutions • Establishment of chemical islands in collaboration with customers, close proximity to customer operations brings clear efficiency improvements through with shared resources • Resource-efficiency improvements through active development of existing and new chemistry platforms. Kemira's proactive R&D and application development to solve customers' efficiency issues and strategic focus on growing in digital services. R&D sustainability assessment where circularity aspects are qualitatively assessed in the whole value chain.
○	Improving the resource efficiency of customers’ processes. Amplified through digital solutions.	↘ Downstream
□	Financial opportunities arising from customers increasing focus on resource efficiency. Core business in developing and applying chemistry to optimize the use of resources.	● Own operations ↘ Downstream
□	Increasing trend and consumer demand to replace fossil-based packaging products with renewable materials, driven both by regulation and brand owners, creates new sales opportunities for Kemira.	↘ Downstream
■	Chemical islands (integration of chemical production with customers' site) with optimized processes together with customers, increasing resource efficiency	● Own operations ↘ Downstream
Waste
●	Waste generated by raw material suppliers in upstream value chain	↗ Upstream	• Kemira uses the EcoVadis platform to assess sustainability of its suppliers. Waste management is included as one criteria in the EcoVadis platform. In EcoVadis, suppliers are requested to meet certain standards and continuously improve.
●	Waste from own production (chemical waste and wastewater, including hazardous waste)	● Own operations	• Waste from own operations is managed through the Integrated Management System and Nature Stewardship program and associated processes, targeting to reduce waste and increase waste recovery
●	Waste generation through product disposal by customers	↘ Downstream
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

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Identification and assessment of impacts, risks and opportunities

Kemira identified material impacts, risks and opportunities for resource use and the circular

economy in the materiality assessment which is described under Material impacts, risks and

opportunities in the General disclosure section. The material impacts, risks and opportunities

are summarized in the table on the previous page. Kemira is planning to consult a broader set

of stakeholders over the upcoming years, to complement the materiality assessment with the

views of e.g. affected communities.

POLICIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY

Kemira has a Sustainability Policy and a Sourcing and Procurement Policy which set the

principles and guidelines on Kemira’s resource use and the circular economy. In the

Sustainability Policy, Kemira commits to reducing emissions and waste, improving resource

efficiency, to enabling a circular economy, adopting circular business practices and having a

positive impact across Kemira’s value chain. The policy covers Kemira's global value chain

activities in full. The key contents, the scope, process, accountability and availability of the

policies is described in the G1 Business Conduct section, under Corporate Culture and

Business Conduct Policies.

Kemira’s Sourcing and Procurement Policy aligns activities with the company sustainability

program and sets expectations for environmental performance. The policy particularly

focuses on inflow-related impacts, risks and opportunities and it covers global activities that

especially apply to the sourcing and purchasing of direct materials and corporate services,

manufacturing sourcing, energy and logistics. The policy sets guidelines and key principles for

sourcing activities and supplier selection, based on sustainability performance. The supplier

management focus is on improving economic and sustainability performance, anticipating

risks and initiating approaches with suppliers that are responsible and innovative. The policy

covers Kemira's upstream sourcing and purchasing activities globally.

Kemira does not currently have a policy related to transitioning away from the use of virgin

resources or the utilization of secondary resources. However, Kemira's circular economy

approach is included in the corporate sustainability program. The circular economy approach

is based on five circular economy principles that are aligned with Kemira's identified material

resource use and circular economy related impacts, risks and opportunities:

1. Transform raw material origin

2. Increase efficiencies and reduce waste from own operations

3. Help customer processes become more resource efficient

4. Design beneficial end-of-life properties for customer products

5. Collaborate with value chain to grasp circular economy opportunities

Kemira is planning to introduce policies for the sourcing of renewable and secondary

materials. This is still in development and statements on these topics are to be included in

official documentation during the upcoming years.

CIRCULAR ECONOMY PRINCIPLES

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ACTIONS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY

Renewable and recycled raw materials and products

The transition to renewable resources is a core element in Kemira’s strategy. Replacing fossil

raw materials with more sustainable alternatives is advancing in three different ways: a focus

on expanding in existing renewable solutions in the market, on biomass-balanced solutions

and on innovating new chemistries. This strategy is advanced through research and

development activities, dedicated commercial acceleration resources and partnerships.

Kemira dedicated 46% of research and development CapEx to renewable materials in 2024.

Kemira also established a Growth Accelerator unit in 2023, to speed up the commercialization

of renewable products and other strategic initiatives.

Kemira utilizes existing, well-known, biobased chemistries in the market but also offers mass

balanced products to customers. This means that raw materials originating from renewable

and circular feedstocks can be utilized in existing production infrastructures, creating

identical product quality and performance to that of conventional products. Biomass-balance

can also contribute to lower product carbon footprints, more information can be found in E1

Actions related to Climate change.

The focus on new chemistries requires innovating new chemical concepts and technologies

for the applications that Kemira serves. This is advanced through strategic upstream

partnerships with International Flavours and Fragrances (IFF) on the alfa glucan chemistry

platform and with Danimer Scientific on the polyhydroxyalkanoate (PHA) platform, for

example.

Alongside raw materials from renewable sources, a significant part of raw materials also come

from recycled sources like industrial by-products, side-streams and waste. These originate

mainly from smelters as well as from steel and metal manufacturing. Coagulants is one of the

largest product lines in terms of volumes and up to 70-80 % of the raw materials for these

products come from recycled sources. In 2024, 49.2% of Kemira's purchased raw materials

came from such sources. Kemira does not have a target for increasing the amount of recycled

materials in use but it tracks the quantity of these on annual level.

Kemira uses the EcoVadis platform to assess and secure the sustainability of suppliers.

Sustainable procurement and environmental performance, including waste management, are

included as criteria on the EcoVadis platform. On EcoVadis, suppliers are required to meet

certain standards and to continuously improve in the areas of sustainable procurement and

the environment, including environmental compliance, waste, air emissions, climate change,

water and groundwater, wastewater, energy, nuisance (noise and odor), land use and

biodiversity, soil and hazardous chemicals.

Kemira has several voluntary indicators related to the upstream value chain. These indicators

can be considered as Kemira's internal targets that aim to prevent and mitigate the negative

impacts and risks which are related to suppliers.

• Supplier spend coverage that is assessed by Ecovadis

• Number of non-compliant key suppliers with Ecovadis ratings improved over Kemira's

minimum rating criteria

• Number of supplier quality audits

• Number of supplier Corporate Social Responsibility (CSR) audits

Targeted suppliers are defined annually based on segmentation and risk prioritization and

indicators are monitored regularly. Indicators are managed by Kemira's Sourcing function and

planned with the Sourcing management team and are approved as a part of annual function

target setting. These indicators are not currently defined as in ESRS. Kemira will continue the

evaluation of these indicators in the following years. Kemira has dedicated persons within the

Sourcing function to take forward supplier-related resource use and circular economy

actions.

Improving customer processes and products

Kemira R&D supports Kemira's resource use and circular economy objectives with New

Product Development (NPD) projects, Technical Customer Service (TCS) and Production

Support (PS). Besides chemical products, Kemira also focuses on digital services that improve

customer resource efficiency. Kemira dedicated 6% of research and development capex to

digital solutions in 2024. Along with the development of renewable and customer resource

improving products, Kemira also innovates products and solutions that improve customer

product durability, recyclability and biodegradability.

Waste reduction

Kemira is continuously evaluating opportunities to decrease waste and associated impacts,

using the Integrated Management System. The Integrated Management System applies ISO

14001 standards to environmental topics and to the Nature Stewardship program. Kemira

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does not have its own active waste disposal, e.g., its own active landfills. Waste from

manufacturing sites is collected by third-party waste handling companies that have permits

to receive and to manage waste. All waste is managed by third-party companies, in

compliance with local regulations. This is ensured by the waste management service sourcing

process.

Actions to reduce waste include improved recovery of raw material ore and the sourcing of

higher quality raw-materials. Further, in coagulant production the focus is on cooperation

with waste handling companies to find recovery options for filtrate wastes. Waste

compositions have been studied in our R&D centers and by third-party waste handling

companies to better understand waste characteristics and the potential for recovery and

converting waste to by-products.

The assessment of waste impacts is included in Kemira's internal processes such as CapEx

investment management, mergers and acquisitions and in the New Product Development

(NPD) process. Kemira has dedicated experts in the EHSQ function for taking waste reduction

related actions forward. This is conducted in close co-operation with Kemira's manufacturing.

TARGETS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY


	Target	Target year	Base- line	Baseline year	2024	2023	Relation to inflows/outflows
Renewable solutions revenue, EUR million	500	2030	184	2020	240	226	Inflows (raw materials) outflows (product)
Products improving customer resource efficiency, %	>50	–	50	2017	58	59	Outflows (products)
Disposed production waste intensity reduction, kg/tonnes of production	-15%	2030	4.4	2019	4.2	4.1	Outflows (waste)

Kemira wants to ensure profitable growth by becoming the leading provider of sustainable

chemical solutions for water-intensive industries. Kemira has set targets which are based on

its strategy, the business model and on creating solutions for our customers. Kemira regularly

reviews both customer expectation and their potential concerns. Our approach to customer

engagement includes activities ranging from information sharing to active dialogue and

collaboration on issues of mutual interest. The feedback and information gathered from these

activities is integrated into Kemira's operational development and decision-making. This

feedback is an important input for setting targets. Kemira's targets are set based on the best

possible available data. Primary data sources and scientific frameworks are applied where

available and applicable (e.g. in the climate targets). The targets have been set and approved

by Kemira's highest management, which also monitors progress on the targets.

Renewable and recycled raw materials and products

Kemira has set a target for renewable solutions revenue of EUR 500 million by the end of

2030. This is voluntary target is aligned with Kemira's business ambitions. The target is not

directly related to the waste hierarchy, but is aligned with well-known circular economy

principles targeting the substitution of virgin and fossil materials and replacing these with

renewable alternatives. The target is one of the key performance indicators for Kemira's

strategic initiatives. Kemira's definition of a "renewable solution" is that more than 50% of the

organic carbon is derived from renewable sources, e.g. from plants, fermentation, recycled

carbon, chemical recycling and CO2 derived sources. The remaining part of the organic carbon

derives from fossil sources. Kemira has been continuously growing its renewable solutions

portfolio over the past years and is on track to reach the EUR 500 million target.

Renewable raw materials are sourced from a variety of plant based sources and established

raw material value chains, some being from side streams of industrial processes. Kemira uses

the ISCC PLUS certification system. This ensures that the cascading principle is followed and

transparency and traceability can be determined.

Improving customer processes and products

To ensure that Kemira's product portfolio is aligned with its strategic sustainability ambitions,

Kemira has a process for assessing the product portfolio performance in customers'

processes. In 2024, 58% of Kemira's revenue was related to products that improve customer

resource efficiency. The target is to ensure that at least 50% of Kemira revenue is generated

through products that improve customers’ resource efficiency, without a specific target year.

This is a voluntary target set by Kemira's highest management. The target is calculated

annually, by analyzing 34 different customer applications and rating these on a scale including

high, medium, low or no impact. Having an impact means reducing raw material consumption,

improving energy efficiency, reducing water consumption, improving production yield,

eliminating greenhouse gases, reducing waste and/or extending customer asset life. Besides

the above-measured products, Kemira has a strategic ambition to grow in digital services.

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These often inherently improve customer resource efficiency. This solution category has been

included in the calculation during 2024.

The target to improve resource efficiency relates to the waste hierarchy aim of minimizing

systematic leakage and negative externalities. It also helps customers reduce their use of

virgin resource inflows. Kemira has been continuously improving on the target and has stayed

well above the expected threshold of 50%. In the past reporting period, due to product

portfolio changes, there has been some performance decline.

Waste reduction

Kemira’s target is to reduce disposed production waste intensity at manufacturing sites by

15% by the end of 2030. The target includes both hazardous and non-hazardous waste but

waste that is recovered, e.g. by recycling, reuse and incineration with energy recovery is

excluded. The target is expressed as an intensity, tons of waste per thousand tons of

production. The baseline was 4.4 in 2019 and the target is 3.7 by the end of 2030. The intensity

was 4.2 in 2024, which is less than the baseline 4.4. Kemira has been gradually reducing the

amount of disposed production waste.

METRICS RELATED TO RESOURCE USE

RESOURCE INFLOWS

Kemira has identified and assessed resource inflows as a material sub-topic in the materiality

assessment. The material impacts, risks and opportunities are summarized at the beginning

of the Resource use and circular economy section. Amongst the inflow categories, Kemira has

focused on the most material topics, including mainly raw materials, covering over 52% of

Kemira's total spend. The materiality of plants and equipment and water and packaging was

assessed to be non-material, based on either spend or volume criteria.

RAW MATERIALS

Kemira’s manufacturing processes depend on raw materials. These raw materials can be

based on non-renewable (fossil, mineral), renewable or recycled sources and include the by-

products, side-streams and waste of other industries. The raw materials are both organic and

inorganic. Kemira further refines the raw materials into bulk and specialty chemicals that are

sold as products to the main customer segments. The main product lines consist of large

volume inorganic chemistries like bleaching and coagulants and organic chemistries like

polymers and sizing. These product lines cover over 75% of Kemira's product portfolio.

Besides the main product lines, new chemistries are entering the product portfolio through an

increased focus on renewable solutions

In 2024, the overall total weight of products, raw materials and biological materials used was

2.6 (2.5) million tons. 2.6% (2.8%) of purchased raw materials originated from renewable

sources (biological materials), accounting for 65,380 tons in weight (70,456). 1.3 million tons

(1.1) or 49% (44%) of raw materials originated from recycled sources (secondary materials).

RESOURCE OUTFLOWS

Kemira has identified and assessed resource outflows, including waste, as a material sub-

topic in the materiality assessment. Packaging was identified as non-material in the

materiality assessment. The material impacts, risks and opportunities are summarized at the

beginning of the Resource use and circular economy section.

Products and materials

Kemira’s products can be categorized in two main ways:

1. Products and solutions that enable and improve the customer process. These solutions are

usually only a small part of the customer process but they have a major impact on the

process. Examples of these are pulping chemistries (e.g. bleaching), water treatment

chemistries (e.g. coagulants and polymers), biogas yield improvement and digital services.

2. Products and solutions that enable and improve the customer end-product. These

solutions become a part of the customer end product. Examples of these are strength

chemistries that also create light weighting properties (e.g. polymers and sizing), coating

chemistries (e.g. barriers) and chemistries enabling the use of circular economy aligned

products like textile fibers with a renewable or a recycled origin.

Due to the nature of Kemira's products (industrial chemicals), durability or repairability is not

seen as an applicable attribute. However, Kemira products do contribute strongly to

customers' product durability which enables them to utilize recycled fibers in their

production, for example.

Kemira is aiming to increase the percentage of recycled or side-product originated raw

material base in the coming years. Kemira has major product lines where the content of

recycled materials (secondary materials) can be 70-80% of the total volume of the product,

e.g. coagulants. More than 90% of Kemira's products are delivered to customers as bulk

transports, with no packaging. The rest are transported in Intermediate Bulk Containers (IBCs)

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that are made of plastic with metal frames. The recyclability of the containers depends on the

transported chemicals. Kemira is not systematically collecting the data on the recycling rate

of packaging to customers due to majority of transportations being in bulk.

WASTE

Kemira generated 72,483 tons of waste as a part of manufacturing processes in reporting year

2024 . Waste data is centrally collected, by seven composition categories, including chemical

waste, sludge, metallic waste, mineral waste from construction and demolition and other

mineral waste, soils, wastewater and other waste. Kemira follows local environmental permits

in waste reporting and recovery and disposal method definitions. The most significant waste

categories at manufacturing sites include chemical waste and wastewater. Some wastewater

streams are defined as waste in local environmental permits and are reported as waste to

local environmental authorities. In 2024, Kemira continued decreasing trend to reduce waste

volumes in its manufacturing operations - both hazardous and non-hazardous. Since 2019,

Kemira's total waste in its manufacturing operations has decreased by 52% (hazardous 70%

and non-hazardous 42%). The reduction in waste from manufacturing operations from

previous year is primarily attributed to a process change at one site, which led to a decrease

of 13,524 tons of non-hazardous waste. Additionally, the divestment of the Oil & Gas business

contributed to an average annual reduction of 2,500 tons.

In addition to manufacturing-related waste from our manufacturing operations, waste is

generated in liability site management and demolition related operations such as soil,

groundwater and landfill remediation and building demolition. In 2024, liability site

management and demolition related waste was generated for example at closed

manufacturing sites in Vaasa, Finland through soil and landfill remediation and building

demolition and at Pierre Benite, France through soil remediation. The decrease in waste from

liability and demolition sites from previous year is mainly due to the remediation and building

demolition project in Vaasa. In 2023, this project generated 104,033 tons of soil and

demolition waste, whereas in 2024, it generated only 36,946 tons.


Hazardous and non-hazardous waste, tons	Manufacturing sites		Liability and demolition sites		Total
Hazardous and non-hazardous waste, tons	2024	2023	2024	2023	2024	2023
Hazardous waste	17,196.0	17,281.1	9,189.3	20,682.7	26,385.3	37,963.9
Directed to disposal	8,099.8	6,246.4	8,332.8	20,680.9	16,432.6	26,927.3
Incineration	1,489.6	575.8	—	—	1,489.6	575.8
Landfilling	3,637.3	3,038.9	7,208.9	17,599.6	10,846.2	20,638.5
Other disposal operations	2,972.9	2,631.7	1,123.9	3,081.3	4,096.9	5,713.0
Diverted from disposal	9,096.1	11,034.7	856.5	1.8	9,952.6	11,036.6
Preparation for reuse	53.4	40.8	—	—	53.4	40.8
Recycling	4,570.3	5,437.5	838.2	—	5,408.5	5,437.5
Other recovery operations	4,472.4	5,556.4	18.3	1.8	4,490.7	5,558.2
Non-hazardous waste	55,286.7	73,286.6	31,955.2	94,236.6	87,241.8	167,523.2
Directed to disposal	12,426.6	15,889.3	13,431.9	3,149.8	25,858.5	19,039.2
Incineration	73.4	271.2	—	—	73.4	271.2
Landfilling	8,349.0	11,447.6	615.2	2,820.8	8,964.2	14,268.4
Other disposal operations	4,004.2	4,170.5	12,816.7	329.0	16,820.9	4,499.5
Diverted from disposal	42,860.0	57,397.2	18,523.3	91,086.8	61,383.3	148,484.0
Preparation for reuse	375.8	251.2	0.4	5.6	376.2	256.8
Recycling	6,728.3	8,661.5	17,126.4	91,073.8	23,854.8	99,735.3
Other recovery operations	35,755.9	48,484.5	1,396.5	7.4	37,152.4	48,491.9
Non-recycled waste	61,184.0	76,468.7	23,179.8	23,845.5	84,363.8	100,314.2
Share of non-recycled waste, %	84.4	84.4	56.3	20.7	74.2	48.8
Total waste generated	72,482.6	90,567.7	41,144.5	114,919.3	113,627.1	205,487.0

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The Group's reporting principles

Inflows

Kemira calculates amounts of indirect and direct materials through direct data. Data is

taken from centralized systems where Kemira also manages financial and volume data

directly. A separate report is generated using spend and volume data, separated by

categories.

Kemira calculates the amounts of renewable and recycled raw materials used in a two step

measurement,the first step is estimating the amount of renewable content in the product,

based on information from suppliers, and the second step is to combine the data with

centralized system data.

• Recycled materials data is gathered from the suppliers and is reported for calculating

the total recycled material share.

• Renewable materials data is reported and used as a basis when calculating the total

renewable material share.

Biological material is wholly or partly derived from materials of biological origin where the

source is either fossilized or not, used to manufacture products and services, but not for

energy purposes.

Secondary material is based on side streams, by-products or wastes of other industries, e.g.

materials from smelters and steel and metal manufacturing such as scrap iron, ferrous

sulfate and spent pickling liquor bath.

Outflows (products)

Renewable solutions revenue and volumes of products are reported and consolidated in the

centralized system. The revenues attributable to the Renewable solutions revenue

calculation are recorded in the system where revenue from products which are classified as

renewable, partly renewable and not renewable.

Products improving customer resource efficiency describes the share of revenue from

products sold for use-phase resource efficiency. Each product line has been qualitatively

scored and weighted, for 34 different customer applications.

Product end-of-life data is based on product sales information from the centralized system

which is categorized based on product line and on product end-use. Calculations on product

volumes are made based on product end-uses. The total volume of product for each end-

use category is calculated, with an estimate for the fraction of organic or inorganic content.

After this the volumes are compared to publicly available end-of-life statistics for the main

applications.

Outflow (waste)

Waste data is collected through consolidation systems from manufacturing sites. Kemira's

waste target excludes non-production waste and disposed products, which are defined as

follows:

• Non-production waste: expired or outdated raw materials, contaminated soil or debris

from spills, construction and demolition waste including waste (reusable and non-

reusable) associated with plant or site closures, biomass from gardening and pruning

activities, laboratory/warehouse cleanouts and non-routine tank/railcar cleaning waste.

• Disposed products: Kemira's products that have been disposed of or recovered by a

third-party disposal company.

62% of Kemira's non-recycled waste is waste that is incinerated with energy recovery. 51% of

non-recycled waste is generated at one site where the waste fraction from one process is

transported in a pipeline to an adjacent paper mill where the fraction is then incinerated

with energy recovery. Kemira monitors an internal recovery rate that includes preparation

for reuse, recycling, incineration with energy recovery and other recovery operations as

waste recovery. The internally followed recovery rate in 2024 was 71%.

The 2024 waste figures exclude the sites that were part of the Oil & Gas business operations

in January 2024, prior to the divestment transaction closing in February 2024. Waste

generation at these sites in January 2024 is estimated to account for less than 0.3% of the

total waste generated in 2024.

Kemira has no significant operational expenditures (OpEx) or capital expenditures (CapEx) as

defined in ESRS to report related to implementations of the actions.

Measurements of the metrics are not validated by an external body other than Ernst &

Young, through assurance.

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Social information

S1 Own workforce

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO OWN WORKFORCE


Material impacts, risks and opportunities		Position in the value chain	Key management areas of processes and policies
Working conditions
●	Health and safety risks related to all operations: process safety and chemical safety	● Own operations	• Safety and wellbeing is the first code principle in Kemira's Code of Conduct, which guides Kemira operations. Kemira has a certified integrated management system to ensure this principle is implemented. • Kemira is committed to providing safe and healthy working conditions in all locations for all employees.
●	Maintaining and further improving industry leading health and safety standards	● Own operations
□	Improving Kemira's attractiveness as an employer by continuing efforts in promoting health, safety, well-being and Diversity, Equity and Inclusion (DEI)	● Own operations	• Kemira ensures that relevant policies and procedures are in place (e.g. Code of Conduct and Recruitment Policy) and increases awareness of these areas through different communications channels externally and internally.
Equal treatment & opportunities for all
▲	Inadequacy of Diversity, Equity and Inclusion (DEI) as part of Kemira's corporate culture for growth and new innovations	● Own operations	• Code of Conduct lays out Kemira's commitment to respecting the diversity, talent and abilities of all. Recruitment policy lays out Kemira's commitment to recruiting fairly and respecting diversity and equal opportunities and treatment of all. • Continuous employee listening process is in place to collect employees' perceptions and feedback on regular basis. • Performance and development discussions (PDD) process ensures that employees's performance and development are discussed throughout the year. • Ethics & Compliance hotline is available for raising concerns.
○	Potential inequality in gender diversity	● Own operations
○	Potential unequal access to learning opportunities	● Own operations
Other work-related rights
○	Potential violations of privacy in high-risk countries may cause negative impact to human rights. Kemira's high risk countries have been defined by a third-party utilizing a set of different human rights and labor rights related publicly available indices (Business social compliance initiative, Labor Rights index, Global Rights index).	● Own operations	• Code of Conduct lays out Kemira's commitment to respecting the privacy of personal data and processing it in compliance with applicable laws. • Group Privacy Policy defines more detailed requirements on privacy. Employee Privacy notice is available for all employees. • Kemira has a confidential channel to report potential privacy breaches, and possible concerns can also be raised through the Ethics & Compliance hotline channel.
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

Management of material impacts, risks and opportunities

Kemira has identified material impacts, risks and opportunities for its own workforce in the

materiality assessment which is described in the General Disclosure section, under Material

impacts, risks and opportunities. Following the materiality assessment, the identified negative

material impacts and risks were taken into a more comprehensive assessment (Human Rights

Due diligence risk assessment) in which the high-risk factors related to Kemira’s business

model and strategy were considered. As an outcome of the more detailed risk assessment,

Kemira has defined possible salient human rights impacts, risks and opportunities for its own

workforce, as described in the table above.

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Own workforce in this context refers to both Kemira employees and non-employees.

Employees are employed by Kemira and include both white-collar employees and operational

employees who are working in operational roles at manufacturing sites. Non-employees

(contingent workforce) are employed by a third-party partner or are self-employed but

perform their work on behalf of Kemira.

In the risk assessment, certain groups in Kemira's own workforce were identified as

potentially being negatively affected by the material impacts and risks with a greater

likelihood than others. For health and safety topics this applies to employees handling

chemicals in production, in Research & Development (R&D), in sales and in driver jobs. In

these groups, temporary employees and pregnant women in particular could be at potential

risk. For DEI topics, potential risks apply particularly to women and to certain minority groups

(sexual orientation, age groups, ethnicity).

Strategy and business model

Kemira's material impacts, risks and opportunities related to Kemira' s own workforce are part

of Kemira's social sustainability agenda, which is aligned with Kemira's strategy and business

model. Most of Kemira's impacts, risks and opportunities in this area are widespread (those

apply to own workforce in general), with the exception of potential violations of privacy which

refer to possible individual incidents. There are no material impacts for Kemira's own

workforce arising from transition plans for reducing negative impacts on the environment and

achieving ecological and climate neutral operations.

All the identified material positive and negative impacts, risks and opportunities for own

workforce are connected to Kemira's strategy and business model. For Kemira, as a global

chemical industry company, health and safety impacts and risks are directly originated from

Kemira's business model and industry environment. Kemira's value "We care for people and

the environment" is a guiding principle in Kemira's business and operations. Safety and well-

being is the first core principle in Kemira's Code of Conduct which guides Kemira's operations.

Diversity, Equity and Inclusion (DEI) topics are central to Kemira's values and growth strategy

as DEI is essential for attracting and retaining talent for growth and innovations. Employee

well-being and safety are crucial for a high performing organization and Kemira's growth

strategy is made possible by its culture. In addition to employee safety, data privacy and

security is also essential. Ensuring consistent data privacy procedures and compliance with

applicable laws and regulations is important for Kemira which operates globally in the

manufacturing industry.

POLICIES RELATED TO OWN WORKFORCE

Kemira has the following policies in place regarding the identified possible salient human

rights impacts on own workforce. The key contents, the scope, process, accountability and

availability of the policies is described in the G1 Business Conduct section under Corporate

Culture and Business Conduct Policies.

Kemira’s Code of Conduct sets the standard for the company's human rights approach. In the

Code of Conduct, Kemira states that the company is committed to the principles of The

Universal Declaration of Human Rights and to the core conventions of the International Labor

Organization (ILO) and the United Nations’ Global Compact. According to the Code of Conduct,

Kemira is committed to providing safe and healthy working conditions at all Kemira locations

and to respecting the diversity, talent and abilities of others. Kemira defines diversity as all

the unique characteristics that make up each of us; personality, lifestyle, work experience,

ethnicity, religion, gender, sexual orientation, age, national origin, ability and other

characteristics. Kemira is committed to treating people with dignity, decency and respect and

to respecting the fundamental human rights. Kemira also respects the privacy of personal

data and processes personal data only for legitimate business purposes and in compliance

with applicable laws. Everyone at Kemira who has access to personal data is responsible for

handling such data with due care and for safeguarding it from unauthorized access and use.

With the Sustainability Policy, Kemira is committed to operating safely and responsibly, to

reducing its impacts throughout its value chain and to continuously improving its

sustainability performance following the Code of Conduct, Strategy and the Integrated

Management System. The purpose of an effective Integrated Management System is to

ensure that Kemira can meet its commitments and be compliant with the applicable

sustainability requirements.

Kemira’s Recruitment Policy applies to all internal and external recruitments. It states that

Kemira is committed to recruiting fairly and responsibly, following the Code of Conduct

principles and Kemira’s strategy. In all recruitments, Kemira respects diversity, equal

opportunity and treatment regardless of race, color, gender, sexual orientation, creed,

political persuasion, age, social status, origin or any other status protected by legislation.

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SUSTAINABILITY STATEMENT 2024

The Group Privacy Policy complements the Code of Conduct by defining more detailed

requirements on privacy and protection of personal data at Kemira. It covers the key

principles of handling personal data, possible data breaches and the consequences of non-

compliance.

The Remuneration Policy for governance bodies provides a framework for the remuneration of

the governing bodies of Kemira as well as information for investors on the remuneration of

Kemira’s governing bodies. It describes the remuneration as required by the Finnish Limited

Liability Companies Act and the Finnish Corporate Governance Code 2020, issued by the

Securities Market Association. Kemira's key remuneration principles (pay-for-performance,

competitive, market driven remuneration, effective communication of remuneration

principles and programs and compliance with local laws and Kemira's internal remuneration

approval principles) are applied to the President and CEO as well as to Kemira employees.

Kemira does not use any form of forced or child labor and has published a public statement

on slavery and human trafficking. The Modern Slavery statement is publicly available on the

Kemira website and has been approved by the Board of Directors. It summarizes Kemira’s

Codes and Policies related to human rights issues and the general approach on how those are

managed and remediated. It also addresses trafficking in human beings as well as child and

forced labor.

To further demonstrate the commitment to equal learning and development opportunities,

Kemira will be publishing a global Employee Learning & Development Procedure and share it

with all employees in Q1 2025. Kemira has a Diversity and Inclusion statement about its

commitment and aspiration in this area, defining what DEI means and what Kemira's focus

areas are. This statement is available for all employees and contingent workforce.

Processes for employee engagement

Continuous employee listening and feedback

Kemira has adopted continuous listening and feedback methods, working with a leading

provider of confidential online pulse surveys and using external benchmarks since 2019.

Participation rates typically vary between 70–80%. Kemira ordinarily conducts engagement

pulse surveys twice a year, to follow the Engagement Index and Inclusion Index. Kemira also

measures employee perception and satisfaction in other areas such as safety, Ethics &

Compliance (Integrity Index) and IT through pulse surveys. In addition, there are regular

meetings with leaders of Employee Resource Groups (ERGs) such as KemPride and the

Women's Network to collect feedback. Employees are encouraged to report any kind of

unsafe conditions via an internal reporting system or to raise concerns through formal and

informal channels (more information on channels for raising concerns and follow-up in the

section Incidents, complaints and severe human rights impacts).

Performance and Development Discussion process

Kemira’s global performance and development discussion (PDD) process facilitates

meaningful conversations between employees and managers, emphasizing performance,

development and commitment to the company. It is an ongoing process that aims to establish

a shared understanding of what needs to be achieved and how to achieve it, covering target

setting, competence development, career aspirations, continuous feedback and follow-up as

well as overall performance evaluation. Potential assessment is additionally conducted for

white-collar employees.

Works councils and co-operation with employee representatives

Continuous collaboration with employee representatives and Works councils is important for

employee listening and involvement. This is ensured by regular meeting procedures locally.

The Kemira European Forum, which includes representatives from the biggest EU countries,

also meets on an annual basis. This a further channel for dialogue.

Engaging with non-employees

All non-employees (contingent workforce) have a nominated supervisor at Kemira whom they

can contact on any topic. Contingent workers are also included in local communication and

collaboration activities. Kemira's Ethics and Compliance hotline is available for contingent

workforce (described in more detail in the section Incidents, complaints and severe human

rights impacts), as are various communication channels and trainings.

Kemira Health and Safety standards and procedures

Kemira has multiple Health & Safety standards and procedures which describe Health &

Safety processes (e.g. risk assessments, process safety management, management of

change, permits to work, incident reporting, incident investigation and communication).

Kemira ensures that employees from all levels of the organization participate in these

processes and also communicates the results of assessments to all relevant employees.

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SUSTAINABILITY STATEMENT 2024

Engagement in these activities is measured through global safety surveys and by the number

of reported safety observations, for example.

ACTIONS RELATED TO OWN WORKFORCE

Kemira takes actions to mitigate, prevent or remediate material negative impacts and to

advance positive impacts on its own workforce.

Health and Safety

Kemira maintains an effective Health and Safety Management System to ensure that Kemira

can meet its commitments and be compliant with the applicable requirements towards

safety. This includes e.g.

• Systematic occupational risk assessments and chemical risk assessments

• Operational requirements for Process Safety Management practices at Kemira facilities

• Proper Management of Change procedure

• Engaging our own workforce in reporting safety observations and proposals for

improvement

• Focusing on behavior based safety (BBS) and creating a positive safety culture

• Developing safety training and competence programs

Kemira is prepared for remediation in case of incidents.

• Kemira has standards for emergency preparedness and incident reporting

• All incidents are reported and preventive/corrective actions created as a part of incident

investigation (root cause analysis)

• Incident analysis and learnings are shared globally in monthly reports

The effectiveness of actions and remediation are tracked by incident frequency, completed

actions of incidents and number of leading safety indicators (number of hazardous conditions

and behavior based safety observations).

Equal opportunities and treatment for all

Kemira conducts global engagement surveys to measure employee perceptions on the

Inclusion Index (more information in the section Targets related to Own Workforce), as well as

the Engagement Index and the Integrity Index. Kemira's employee engagement has been

consistently strong over the years, and 2024 was another year showing continued strong

employee engagement. In May 2024, the Kemira engagement score was 80, being 7 points

above the global Manufacturing benchmark (73).

Awareness on Diversity, Equity and Inclusion (DEI) and Human Rights

Kemira has had a DEI program in place since 2023 and work has progressed as planned in

2024. To build awareness on DEI and Human Rights topics, Kemira offers DEI awareness

training. During 2023-2024 87% of white collar employees have completed DEI eLearning and

92% of people managers globally have attended DEI training. In addition, in 2024 local HR

together with management, facilitated DEI workshops at 21 manufacturing sites in local

languages. There is also an Inclusive Leaders Program (virtual and face-to-face workshops),

for designated sites and teams, attended by 132 employees in 2024. Kemira's global training

offering includes both regular and compulsory training on the Code of Conduct, covering a

harassment-free environment, as well as Human Rights and Business eLearning for all new,

white collar hires.

Kemira has Employee Resource Groups (ERGs), such as KemPride & the Women's Network,

which have been in place since 2022. The effectiveness of these groups is followed in regular

meetings with ERG leaders and Executive DEI champions, by collecting feedback from the

ERGs and by external benchmarking.

Recruitment, learning and remuneration

A recruitment handbook and trainings are available for people managers, to ensure a

successful recruitment process with awareness and avoidance of biases, active listening and

open and targeted recruitment questions. This is measured through a global onboarding

survey for new hires, for example, which is used for collecting feedback about experiences on

the recruitment and onboarding process. Kemira takes actions on the survey results when

needed.

Kemira has committed to openly posting all positions, with the exception of Management

Board and organizational restructuring . In 2024, Kemira piloted internal Diverse Recruitment

Panels in management level recruitments, to promote gender balanced candidate pools, to

increase gender diversity and to reduce biases in recruitment.

Kemira offers possibilities to explore projects of interest outside of one's usual role, to

develop skills and competencies and to build networks cross-fuctionally through short-term

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SUSTAINABILITY STATEMENT 2024

or part-time work gigs that are openly posted for internal application process. In addition,

company-wide global events like the Learn & Grow Month are open to all employees,

irrespective of job grade and location.

Kemira has inbuilt structures in place that drive fair and objective pay decisions globally.

Together with market data and salary data information, these structures enable Kemira to

evaluate, analyze and implement equitable remuneration. Transparency and guidance around

pay related principles and practices support pay-related decision-making.

Potential violations of privacy in high-risk countries

Kemira takes actions to prevent, mitigate and remediate the negative impacts of potential

violations of privacy by increasing awareness of data privacy, by having Employee Privacy

Notices available for all employees and by conducting risk and gap assessments for action

taking. Kemira has a confidential channel available for reporting potential data privacy

breaches and reacts promptly to all reported incidents.

Resources

Several functions at Kemira are responsible for taking actions related to the material impacts,

risks and opportunities for Kemira's own workforce.

• The Human Resources (HR) function, led by EVP, HR is responsible for global HR processes

and procedures in areas such as talent development, remuneration and the employment

life-cycle.

• The Environment, Health, Safety and Quality (EHSQ) function, led by VP, EHSQ is

responsible for occupational Health & Safety development for our own workforce, in

collaboration with HR.

• The Ethics and Compliance function, led by the Director, Ethics and Compliance, is part of

Legal and is responsible for overseeing the global grievance mechanism which covers the

hotline channel and for managing the process of handling internal reports in the

Compliance Committee.

• The Legal function, led by Group General Counsel, is responsible for the global policies and

procedures for data privacy, with the support by HR.

• Corporate Sustainability, led by Director, Corporate Sustainability, is a Group-level function

which coordinates the cross-functional work for social sustainability topics, in

collaboration with HR, EHSQ and Legal.

TARGETS RELATED TO OWN WORKFORCE

Kemira has identified people and safety as its social sustainability focus areas. Ensuring

workplace safety is a key priority in all of Kemira's operations. Kemira's safety target Total

Recordable Injury Frequency (TRIF) was originally set in 2019 when it was proposed to the

Management Board by the EHSQ function, based on safety performance of previous years

and the industrial benchmark. At the time, in 2019, TRIF (baseline value) was 2.1 and the target

was set to reach level of 1.5 by end of 2025, and 1.1 by end of 2030. The Management Board

approved the target, and it is being reported on monthly basis by the EHSQ function.

The target is reviewed annually based on safety performance in the previous year, and for

2024 the target was 1.9. Due to several minor hand and finger injuries in 2024, the TRIF was 3.2

which resulted in Kemira re-evaluating the target and adjusting it from 1.5 to 2.2 by end of

2025, and from 1.1 to 1.5 by end of 2030. To achieve this ambitious target Kemira will continue

to focus on safety awareness via training, behavior-based safety, contractor management

and a hierarchy of controls.

In people focus area, Kemira’s target is to reach the top 10% cross-industry norm for Diversity,

Equity & Inclusion (DEI) by the end of 2025, in comparison to an external benchmark. The

target was defined based on an employee survey in 2020 for all employees and Kemira chose

the key gaps as an ambitious sustainability target for 2025. Inclusion Index items

(Authenticity, Belonging, Growth and Inclusive Leaders) were selected as target metrics and

the target was approved by the Management Board. Progress towards this target is followed

through global employee surveys which are typically conducted twice a year. In 2024, the

employee survey was conducted in May and the Inclusion Index score was 77, being 3 points

away from the latest top 10% cross-industry norm (80). Kemira has identified Growth and

Inclusive Leaders as key focus areas on which actions are consistently being taken (more

information is available in the section Actions related to own workforce).

The TRIF target applies to all in Kemira's own workforce and the Inclusion Index target applies

to all Kemira employees in all operations. The TRIF target was adjusted in 2024 as described

above, whereas the Inclusion Index target has not changed during the reporting period.

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SUSTAINABILITY STATEMENT 2024

METRICS RELATED TO OWN WORKFORCE

EMPLOYEES

At the end of 2024, Kemira employed 4,698 people ( 4,915). The number of employees

(headcount) decreased by 217 compared to the previous year, mainly due to the divestment of

the Oil & Gas business in 2024 which also impacts the turnover rate. Most employees work

with permanent and full-time employment contracts. A temporary (fixed-term) employment

contract is a type of employment contract used mainly in EMEA and it is atypical for the

Americas and APAC. At the end of 2024, there were 76 (76) employees with temporary

contracts in total.


Total number of employees by gender	2024	2023
Female	1,278	1,327
Male	3,420	3,588
Total	4,698	4,915


Total number of employees by country	2024	2023
Finland¹⁾	779	790
China¹⁾	692	695
United States¹⁾	780	1,007
Other	2,447	2,423
Total	4,698	4,915

1) Countries with min. 50 employees, representing at least 10% of total number of employees


Number of employees by contract type by gender
	2024			2023
	Female	Male	Total	Female	Male	Total
Total	1,278	3,420	4,698	1,327	3,588	4,915
Permanent	1,251	3,371	4,622	1,303	3,536	4,839
Temporary	27	49	76	24	52	76
Non-guaranteed hours 1)	—	—	—	—	—	—
Full-time	1,228	3,390	4,618	1,273	3,558	4,831
Part-time	50	30	80	54	30	84

1) Kemira did not employ any employees with non-guaranteed hours in 2024


Number of employees by contract type by region
	2024				2023
	EMEA	APAC	Americas	Total	EMEA	APAC	Americas	Total
Total	2,517	939	1,242	4,698	2,499	932	1,484	4,915
Permanent	2,445	939	1,238	4,622	2,426	932	1,481	4,839
Temporary	72	—	4	76	73	—	3	76


Employee turnover	2024	2023
Total turnover, %	13.9	9.6
Total turnover	646	465

More information on the financial performance of Kemira's segments and regions (ESRS2

SMB-1, 40 (b, c) and the number of personnel by geographical area (ESRS2 SMB-1, 40 (a) i-iii)

can be found in the Financial Statements (Board of directors' review Financial performance

2024 and Segments, in note 2.1. Segment information and 2.2 Other operating income and

expenses).

NON-EMPLOYEES

The contingent workforce describes non-employees who are employed by a third-party

partner or are self-employed but perform their work on behalf of Kemira. Typically, the

contingent workforce provides temporary resourcing with specific skills and competences,

substitutes others or balances out seasonal workload fluctuations. In 2024, there were 424

(428) contingent workers (headcount at the end of the reporting period) as part of Kemira's

own workforce.

WORKING CONDITIONS

Collective bargaining coverage and social dialogue

Kemira respects freedom of association and collective bargaining, as stated in the Code of

Conduct and through the commitment to the United Nations Global Compact. To increase

Kemira employees’ awa reness of their rights regarding freedom of association and collective

bargaining, Kemira provides regular training on the Code of Conduct. In 2024, Kemira did not

identify any violations of freedom of association or collective bargaining agreements in its own

operations.

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SUSTAINABILITY STATEMENT 2024

Collective bargaining agreements 

In 2024, 2,225 and 47% of Kemira employees globally were covered by collective bargaining

agreements. The working conditions and terms of employment of those employees who are

not covered by collective agreements are defined based on company policy, local labor laws

and applicable legislation.


Coverage rate ¹⁾	Collective bargaining: Employees – EEA	Workplace representation: Employees – EEA
0-19%
20-39%
40-59%
60-79%
80-100%	Finland	Finland

1) This table includes countries with more than 50 employees representing at least 10% of total number of employees

Adequate wages

All employees at Kemira receive a salary above adequate wage. The adequate wage level has

been analyzed and confirmed by comparing employee salaries in the lowest pay categories to

available data on adequate wages. The adequate wage benchmarks follow wage levels as

established in collective bargaining agreements, national or sub-national legislation, or living

wage references.

Health and safety

All Kemira locations and operations implement and maintain an Integrated Management

System that meets the ISO 45001 standard. Certification is sought when stakeholder

expectations or customer benefits are evident. Kemira's share of ISO 45001 certified locations

has improved from 94% in 2023 to 97% in 2024, as a result of 68 Kemira locations

(manufacturing, R&D and offices) having an ISO certification.


Own workforce covered by health and safety management system, %	2024	2023
Employees	100	100
Non-Employees	100	100

Kemira reports its occupational safety performance indicator as a number of Total

Recordable Injuries (TRI) and Lost Time Incidents (LTI), and their frequencies (TRIF, LTIF) per

million working hours.


Total Recordable Injuries	Number		Frequency 1)
Total Recordable Injuries	2024	2023	2024	2023
Employees	29	21	2.7	1.9
Contractors	14	16	5.3	4.8
Total	43	37	3.2	2.5

1) Total Recordable Injuries per million working hours


Lost Time Incidents	Number		Frequency 1)
Lost Time Incidents	2024	2023	2024	2023
Employees	7	12	0.6	1.1
Contractors	9	9	3.4	2.7
Total	16	21	1.2	1.4

1) Lost Time Incidents per million working hours

The total number of TRIs in 2024 was 43 (37) and TRIF was 3.2 (2.5). Kemira employees' TRIF

was 2.7 as a result of 29 injuries. The total number of LTIs was 16 (21), lower than previous year,

and corresponding LTIF was 1.2 (1.4). No permanent injuries were reported in 2024 and there

have not been fatalities involving Kemira employees, contingent workforce or contractors

since 2005.

Incidents, complaints and severe human rights impacts

Kemira emphasizes the importance of employees and non-employees (contingent workforce)

raising any issues or concerns and provides and promotes various channels for reporting any

suspicion of misconduct to Ethics and Compliance (hotline or by email) or to the management.

The Ethics and Compliance Hotline is hosted by an external service provider and is available

for both Kemira employees and contingent workforce. Reporters can submit reports in their

own language by phone and through a web form. The channel is available 24/7 on Kemira’s

intranet and is promoted on posters in all company locations . The Ethics and Compliance

function manages the hotline system and the process of handling the reports. The reports are

reviewed and investigated under the supervision of the Ethics and Compliance Committee

which is also responsible for ensuring that there is a consistency in all remedial actions taken

across the organization. The members of the Ethics and Compliance Committee are the

Group General Council, the EVP Human Resources, the Head of Internal Audit and the Ethics

and Compliance Director.

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SUSTAINABILITY STATEMENT 2024

Reporters of issues or concerns have an option to remain anonymous and all reports are

treated in confidentially, to allow proper investigation and to comply with applicable

legislation. The Ethics and Compliance Committee has the task to examine all reported cases

and to evaluate and classify all received allegations, based on a description of the facts,

events and circumstances. It is then determined whether an investigation is needed, in which

case a person or team within the organization is assigned to investigate the case. The case

may also be handled by Internal Audit. The Ethics and Compliance Committee concludes the

outcome and provides an overview to the Audit Committee. If misconduct has occurred,

Kemira will take appropriate measures, including corrective, disciplinary and/or legal

measures, taking into consideration the applicable legal rules.

During 2024, a total of 59 complaints were reported of which 33 were related to discrimination

or harassment. At the end of the year 2024, 25 of those had been investigated and closed and

14 of them were confirmed as discrimination or harassment cases. Kemira has not

categorized the discrimination cases by gender, racial or ethnic origin, nationality, religion or

belief, disability, age or sexual orientation. During the year 2024, Kemira has not received any

allegations of severe human rights incidents. Therefore, Kemira has not paid any

compensation for remediation of any human rights incidents or complaints in 2024.

The grievance and remediation data is collected by several functions. The Ethics and

Compliance and Internal Audit functions collect the reported cases. In addition, HR function

collects the numerical case data of human rights violations globally from local HR contact

persons. HR numerical data collection is conducted to ensure that all severe grievance cases

have been reported to Ethics and Compliance or Internal Audit and handled through a

comprehensive process.

Integrity Index

By measuring the Integrity Index on employees' perceptions of integrity, Kemira seeks to

ensure that employees are aware of and trust the processes described above as a way to

raise their concerns. The Integrity Index question ("I can report unethical behavior or practices

without fear of retaliation at Kemira") is usually measured as part of Kemira's global

engagement survey. The next employee survey will be conducted in 2025 and Integrity Index

figures will be reported based on those results.

EQUAL TREATMENT AND OPPORTUNITIES FOR ALL

Diversity Metrics

Kemira monitors the distribution of gender and age groups to promote diversity across all

levels in the company.


	Number		Distribution, %
Management by gender ¹⁾	2024	2023	2024	2023
Female	38	42	29	31
Male	92	94	71	69
Total	130	136	100	100

1) Kemira management (Director, Vice President and Senior Vice President positions, excluding the Management Board)


	Number		Distribution, %
Employees by age group	2024	2023	2024	2023
< 30	444	484	9	10
30 to 50	2,758	2,847	59	58
> 50	1,496	1,584	32	32
Total	4,698	4,915	100	100

Training and skills development

Kemira is committed to the training and skills development of all employees. Kemira provides

each employee with access to relevant competence development programs and

learning opportunities and supports the upgrading of employee skills through on-the-job

learning programs (including generic and job-specific competence development), buddy/

coaching/mentoring programs and traditional methods like classroom and digital learning.

In 2024, Kemira continued to advance towards its aim to capture all training and employee

development related hours in the global learning management system. At present, leadership

development activities, regional and global competence development, vocational training

programs and many local programs are recorded in the learning management system.

However, some training and development activities are still recorded locally and not yet

covered in the global system.

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SUSTAINABILITY STATEMENT 2024

Examples of global and regional programs offered during 2024: 

• Trainings on Code of Conduct, Human Rights & Business, Gifts, Entertainment and Anti-

Bribery, Speak Up, Information Security Awareness and other compliance programs

delivered mainly as eLearning courses

• Training programs on Diversity, Equity and Inclusion (DEI), offered through eLearning and

facilitator-led virtual, face-to-face and hybrid training sessions

• Trainings on Kemira principles (Focus on Growth, Collaborate to Succeed, Deliver Value),

completed by approx. 3400 employees in 2024, and on Kemira's growth culture, incl. the

Kemira Catalyst Summit for approx. 100 Kemira leaders and talents globally

• The Learn & Grow month was opened to all employees, with 20 sessions and approx. 420

attendees globally

• Sustainability trainings, e.g. Kemira as a Sustainability-Focused Company

• EHSQ-related programs including Sustainability Policy and EHSQ Standards, assigned as

mandatory training to relevant employees to ensure safety awareness, understanding,

compliance and the further development of Kemira's Safety culture

• The Global Safety Training Program for all shop floor supervisors in 2024. The program is

designed to set clear expectations for manufacturing supervision at Kemira, emphasizing

safety and sharing best practices

Performance management and development

Kemira's global performance and development discussion (PDD) process is an ongoing

process covering four elements:

1. My Performance - setting performance targets at the beginning of the year and reviewing

progress and achievements regularly

2. My Development - discussing competencies, strengths and development areas, as well as

career aspirations

3. My Follow-up and Feedback - follow-up and feedback from manager, colleagues and

other stakeholders throughout the year

4. Overall Performance and Potential - an annual assessment and calibration of

performance and potential of white-collar employees.

The global process covers all permanent employees, both professional and operational

employees. Temporary employees may also be included, based on the length of their

contract.


Employees received regular performance and career development review 1)	Number		Coverage, %
	2024	2023	2024	2023
Employees by gender
Female	1,211	1,233	99	98
Male	3,287	3,175	98	91
Employees by employee category
White-collar employees	2,735	2,770	98	98
Operational employees	1,763	1,638	98	85
Total	4,498	4,408	98	93

1) Covers permanent employees (excl. employees on leaves) as of Sep 30, 2024

Remuneration

Pay equity at Kemira means that employees are paid and rewarded with fairness. Kemira is a

global manufacturing company with employees in 38 countries. Due to global presence and

workforce structure, remuneration levels differ across the employee groups and the

countries. Kemira reported an unadjusted gender pay gap of 5.8 % in 2024, covering all

employees in all operating countries.

Kemira reported a closing of an unexplained pay gap already in September 2023. Kemira has

identified what are considered as justified pay differences: Differences in pay may exist based

on employee location, position level and expertise required, performance of the individual and

possible local requirements such as collective agreements. After considering these justifiable

factors it is possible to identify an unjustified pay gap. For Kemira this is not limited to the

gender pay gap, as all available information, including gender, nationality, ethnicity, age and

other possible attributes are reviewed. Regular pay equity monitoring at Kemira takes into

account all of the above, seeks to detect any unjustified gaps and then initiates action to

address and close them without delay.

The annual total remuneration ratio reflects the annual total remuneration of the highest paid

individual relative to the annual average remuneration of all Kemira employees, excluding the

highest paid individual, Kemira's President & CEO . To ensure the alignment of the interests of

the CEO and of the shareholders, the weighting of variable remuneration and particularly

long-term incentive plans in the CEO’s total remuneration opportunity is substantial. In

contrast, employee remuneration is less volatile, with a smaller proportion of the total

KEMIRA 2024 | FINANCIAL STATEMENTS | 86

SUSTAINABILITY STATEMENT 2024

remuneration consisting of variable components. The ratio is also influenced by the size of

Kemira and by the differing market remuneration levels between countries. In 2024, the

annual total remuneration ratio was 27 (ratio of highest paid individual to the annual average

remuneration of all Kemira employees). Based on Kemira’s experience and understanding, the

given average figure represents median as required by the directive.

OTHER WORK-RELATED RIGHTS

Child and forced labour

According to Kemira’s Code of Conduct, Kemira does not use any form of forced or child labor.

Kemira acknowledges that in spite of mitigation procedures there could potentially be an

increased risk related to these in certain high risk countries in which Kemira has operations:

China, Brazil, India, Indonesia and South Korea. To mitigate this risk, Kemira conducts identity

and age checks during the hiring process. Also, in many countries, the local labor laws and/or

collective bargaining agreements have very extensive rules for young people, restricting

working hours, work activities, work environments and overall health, well-being and

educational opportunities.

The Group's reporting principles

The total number of Kemira employees and non-employees (contingent workforce) are

indicated as the numbers at the end of the reporting period (31 December 2024). The

number of Kemira employees also includes non-active employees such as employees on

long leaves.

Employee turnover refers to all permanent Kemira employees who have left the company

during 2024, in comparison to the average permanent headcount for the reporting period.

The coverage of collective agreements and employee representatives is based on the

number of employees on 30 September, 2024. Any changes in the last quarter are not

expected to affect the result of this metric.

The remuneration figures are reported based on active employees on 31 December 2024,

including all white collar employees and operational employees (full-time, part-time and

temporary contracts). The gender pay gap has been calculated using the gross, annual

average salaries of female and male employees, converted to euros before calculation. The

figure represents the difference in pay between the groups, expressed as a percentage of

the average pay of male employees. The calculation excludes all additional compensation

elements like incentives, over-time, shift allowances or benefits.

The annual total remuneration ratio is calculated using remuneration paid during the

respective year. CEO remuneration includes the regular base salary, benefits and short and

long-term incentive payments. The average total remuneration for all employees includes all

employee wages and salaries, including accrued short-term incentives and yet excluding

side costs and total CEO remuneration.

Coverage of Performance and Development Discussions (PDD) is indicated as the

percentage of permanent employees on 30 September 2024 who have had an approved PDD

discussion in 2024 (excl. employees who are on long leave, e.g. family leave).

Number of TRIs is the sum of the reported lost time injuries, restricted work cases and

medical treatment cases for Kemira employees, contingent workforce and contractors.

When a TRI frequency is reported, it is normalized to one million working hours. LTI is the

total number of reported lost time incidents for Kemira employees, contingent workforce

and contractors. When LTIF is reported, it is normalized to one million working hours.

Working hours and incidents affecting contingent workforce are included in the overall

incident statistics instead of being reported separately, in line with Kemira's current

reporting practices. Working hours are manually reported through an EHSQ software by

Kemira Operations. In 2025, Kemira is planning to conduct a comprehensive review of

working hours reporting to address this identified opportunity area.

The Inclusion Index figures are calculated using the average scores of four items

(Authenticity, Belonging, Growth and Inclusive Leaders) obtained from Kemira's global

engagement survey which is usually conducted twice a year for all employees. Kemira scores

are compared to a cross-industry norm. Responses are collected on a scale of 1−5 (fully

disagree/fully agree) and an external service provider converts the responses to indices on a

scale of 0−100 (100 = everyone fully agrees).

Measurements of the metrics are not validated by an external body other than Ernst &

Young Oy, through assurance.

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S2 Workers in the value chain

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO WORKERS IN THE VALUE CHAIN


Material impacts, risks and opportunities		Position in value chain	Key management areas of processes and policies
Working conditions
○	Potential human rights violations e.g. health and safety issues in the value chain, particularly in high risk countries	↗ Upstream ↘ Downstream		• Code of Conduct and Code of Conduct for Business Partners lay out expectations for suppliers for respecting human rights and safe use of chemicals • Supplier sustainability assessments and audits are carried out to identify risk with supplier human rights impacts, risks and management • Product Stewardship Policy expresses Kemira's commitment to safe use of chemicals and priority substance management process aims to reduce the negative impacts of chemicals in the whole value chain
○	Potential risks related to labour law practices in certain renewable feedstock value chains	↗ Upstream
●	Health and safety incidents with contractors, one high risk group among value chain workers	● Own operations		• Code of Conduct's first code principle is to provide safe and healthy working conditions in all of Kemira's locations for both Kemira's own employees and contractors • Kemira has contractor pre-qualification, mandatory contractor safety induction and permit-to-work process
Other work-related rights
○	Potential human rights violations e.g. child labour and forced labour in the value chain, particularly in high risk countries	↗ Upstream ↘ Downstream		• Code of Conduct and Code of Conduct for Business Partners lay out expectations for suppliers and Kemira's customers for respecting human rights • Supplier sustainability assessments and audits are carried out to identify risks with supplier human rights impacts, risks and management
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

Identification and assessment of material impacts, risks and opportunities

Kemira has identified material impacts, risks and opportunities for value chain workers in the

materiality assessment which is described under Material impacts, risks and opportunities in

the General disclosure section. The value chain worker related impact, risk and opportunity

analysis was based on internal interviews and materials as well as on Kemira's latest Human

Rights Impact Assessment framework. The methodology of the Human rights Impact

Assessment was based on the United Nations Guiding Principles on Business and Human

Rights and on OECD Due Diligence Guidance. As an outcome of the analysis, Kemira has

identified the possible salient human rights impacts and risks for workers in the value chain,

as described in the table above.

Strategy and business model

Kemira provides sustainable chemical solutions for water-intensive industries, best suited

products and expertise to improve our customers’ product quality and process and resource

efficiency . Sustainability is embedded into Kemira’s strategy and long-term success as

Kemira’s customers are increasingly seeking sustainable solutions.

Kemira's products and upstream raw materials are industrial chemicals which need to be

handled, stored, transported and used according to high safety standards, to prevent

negative impacts on people and the environment. Kemira’s priority obligation is to ensure that

the workers in the upstream and downstream value chains are not negatively impacted by

chemicals, especially by substances of very high concern. When Kemira's current processes

are updated, special attention needs to be paid to certain groups of people who are likely to

be impacted by Kemira's business. This can be done by careful supplier and contractor

management and by providing appropriate guidance in the safe use of chemicals for Kemira's

customers and other value chain workers.

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Kemira’s strategy towards renewable chemistries might lead to new social sustainability

related impacts and risks in the upstream value chain. These will need to be taken into

account in future strategy implementation.

Kemira has identified high risk countries within its upstream and downstream value chains

which have an increased risk of the use of child and forced labor. The increased risk is

particularly evident in the APAC region. The high-risk countries have been defined by a third-

party, utilizing a set of different human rights and labor rights related indices that are publicly

available (Business social compliance initiative 2022, Labor Rights index, Global Rights index).


Material impacts		Position in the value chain	Workers who are likely to be impacted	Particularly vulnerable workers or people groups
Working conditions
○	Human rights violations e.g. health and safety issues in the value chain, particularly in high risk countries	↗ Upstream ↘ Downstream	Upstream: Manufacturing, laboratory personnel, logistics and storage personnel, who are handling chemicals Downstream : Kemira’s customers’ personnel who are handling Kemira’s products	Maintenance personnel, temporary employees, migrants, children, pregnant women
○	Risks related to labour law practices in certain renewable feedstock value chains	↗ Upstream	Workers who are working in the origin of Kemira’s raw-material feedstocks	Children, migrants, workers who cannot read
●	Health and safety incidents with contractors, a high risk group among value chain workers	● Own operations	Maintenance, repair, turnaround, major renovation or specialty work at Kemira operations	Maintenance personnel, temporary employees, migrants
Other work-related rights
○	Human rights violations e.g. child labour and forced labour in the value chain, particularly in high risk countries	↗ Upstream ↘ Downstream	Workers who are working in high risk countries either in Kemira's upstream or downstream value chain	Children, migrants, workers who cannot read

POLICIES RELATED TO WORKERS IN THE VALUE CHAIN

Kemira has several policy statements which set the high level human rights objectives for

Kemira's business partners to follow. All of the policies cover the whole value chain and all

value chain workers. The key contents, scope, process, accountability and availability of the

policies is described in the G1 Business Conduct section, under Corporate Culture and

Business Conduct Policies.

Kemira's general approach towards human rights is described in the Code of Conduct and the

summary can be found in the S1 Own workforce section. Kemira's general approach towards

human rights in the Code of Conduct for Business Partners is to commit the business partners

to respecting fundamental human rights, to never use child or forced labor and to pay

compensation which complies with all applicable wage laws. These requirements are in

accordance with the UN Universal Declaration of Human rights and the core conventions of

the International Labour Organization (ILO). Kemira also commits its business partners to

making and developing products according to the highest ethical and safety standards, as

well as to following applicable laws and regulations on product safety, including

communication of hazards and information about the safe use of chemicals. All suppliers

must follow the Code of Conduct for Business Partners in all dealings with Kemira. The Code

of Conduct for Business Partners is communicated to all suppliers through the ordering

process, as part of Kemira's terms and conditions.

The Kemira Group Product Stewardship Policy aims to ensure that Kemira's products are

handled and used safely by Kemira's stakeholders, that they are safe for the environment and

that potential chemical risks and their impacts are incorporated into decision making related

to Kemira's operations, strategy implementation and long-term strategic development. The

proactive management of the safe use of chemicals and protection of the environment and

human health are fundamental prerequisites for Kemira's business. The Kemira Group

Product Stewardship Policy continuously communicates and raises awareness on product

stewardship among employees, suppliers, business partners and other possible stakeholders

in the value chain.

The Modern Slavery statement is a publicly available statement, approved by Kemira's Board

of Directors. It summarizes both Kemira’s Codes and Policies related to human rights issues

and a general approach for how those are managed and remediated. It also addresses human

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trafficking as well as child and forced labor related prevention and mitigation methods and

actions.

PROCESSES RELATED GRIEVANCE, REMEDIATION AND

STAKEHOLDER ENGAGEMENT

Stakeholder engagement in upstream and downstream value chain

Kemira regularly reviews stakeholders' expectations and potential concerns. Our approach to

stakeholder engagement includes activities ranging from information sharing to active

dialogue and collaboration on issues of mutual interest. The feedback and information

gathered from these activities is integrated into Kemira's operational development.

Stakeholder feedback is an important part of risk management, also regarding upstream and

downstream value chain workers.

Kemira maintains active dialogue with its upstream suppliers. Supplier audits and supplier

performance evaluation are carried out regularly. The results of the evaluations are reviewed

together with the suppliers and improvement plans are created and followed up accordingly,

as part of our supplier management practices.

Succeeding with customers is a core value at Kemira. Our goal is to understand customers’

needs, to provide an excellent experience with our products and services and to build close

relationships that help them remain loyal customers. To measure customers' satisfaction with

their experience, Kemira conducts an annual Voice of Customer (VoC) relationship survey to

gain valuable insights, to understand what customers need and to understand our

performance in meeting their expectations. The Voice of Customer survey gathers insights on

our customers' experience and their satisfaction with our products, deliveries, safety, services

and their relationship with their Kemira representative.

Kemira uses external service providers (external contractors) who work at Kemira locations.

These services cover maintenance, repair, turnaround, major renovation or specialty work at

Kemira sites. External contractors are engaged by carrying out regularly contractor

performance evaluations and the results are then reviewed together with the selected

external contractors. In addition, there are several local practices for engaging external

contractors such as safety events covering topical health and safety subjects.

Despite an active dialogue with suppliers, customers and external contractors, Kemira has not

yet adopted a general process to engage with all workers in the value chain or with their

legitimate representatives to hear their perspectives and needs in relation to Kemira's

material impacts on them.

Grievance and remediation mechanisms in upstream and downstream value chain

Kemira’s Ethics and Compliance Program aims to enhance compliance management at

Kemira on a continuous basis. The Ethics and Compliance function is responsible for

overseeing the effective implementation of Kemira’s Ethics and Compliance program and for

reporting on it directly to the Audit Committee on a regular basis.

The Ethics and Compliance Committee oversees the management of compliance allegations,

to ensure that fair and sufficient investigation, remediation and consistent disciplinary action

are taken across the organization. Kemira emphasizes the importance of employees and

other key stakeholders raising any issues or concerns to the Ethics and Compliance hotline.

More detailed information on the Ethics and Compliance hotline process can be found under

Incidents, complaints and severe human rights impacts in S1 Own workforce. Kemira also has a

Misconduct Reporting Policy for the protection of whistleblowers which is disclosed in the G1

Business Conduct section.

The customer and supplier complaint channel is an application which can be utilized by

Kemira personnel to raise their concerns related to issues within the upstream and

downstream value chains. The complaints are handled by a formal process. This channel is

indirectly available for both upstream and downstream workers. However, it is currently

mainly utilized for quality related complaints. Kemira also uses an internal system for

collecting and processing health, safety and quality related issue reports as well as

observations related to hazardous conditions, near-misses and other similar issues or

concerns. The channel is indirectly available for value chain workers to raise their concerns

and health and safety observations. During 2024, Kemira did not receive any allegations

related to value chain workers severe human rights violations by hotline, Ethics and

Compliance function's e-mail and other grievance channels.

Kemira does not actively assess whether value chain workers are aware of or trust Kemira's

grievance channels or Kemira's structures and processes. However, Kemira is currently

conducting a comprehensive study of its grievance and remediation management. The study

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aims to identify the deficiencies of the current mechanisms as well as to enhance the

stakeholder engagement and transparency of this part of the due diligence process.

ACTIONS RELATED TO WORKERS IN THE VALUE CHAIN

Kemira takes actions to mitigate, prevent or remediate material negative impacts and to

advance positive impacts on workers in the value chain. The following actions were conducted

during 2024, covering the whole value chain.

Upstream value chain

Supplier management and supplier risk and compliance management are cornerstones of

Kemira's sustainable sourcing roadmap which ensures responsibility in the supply chain. This

is the global process for Kemira to identify and assess upstream related sustainability

impacts, risks and opportunities. The focus of supplier management is on improving economic

performance, anticipating risk and initiating approaches with suppliers that are responsible

and innovative. It is described in three main processes: Supplier Segmentation, Supplier

Performance Evaluations and the Vendor Value Program.

Kemira suppliers are segmented into four categories: strategic, critical, volume and base

suppliers. They are prioritized based on multi-factor risk criteria to better help to manage

supplier relationships and to plan actions for necessary risk mitigation. The Supplier

Performance Evaluations program collects and provides regular feedback to suppliers, on

both their operational and sustainability performance. The majority of strategic, critical and

volume suppliers are part of regular supplier reviews. The Vendor Value Program aims to

develop capabilities that will enable the identification, partnering with and management of

suppliers, along the various value chains associated with Kemira’s product lines. Kemira

supplier risk and compliance management defines the requirements for suppliers to do

business with Kemira, as well as provides tools and processes for mitigating sustainability risk

with suppliers, e.g sustainability assessments and audits.

Kemira uses EcoVadis to carry out sustainability assessments for key suppliers, including

those related to social matters. The assessment focuses on 21 sustainability criteria that are

grouped into four themes: Environment, Labor & Human Rights, Ethics and Sustainable

Procurement. The rating methodology measures the quality of a company’s sustainability

management system through 3 management pillars: Policies, Actions, and Results. Suppliers

receive a sustainability scorecard with detailed insights into strengths and potential

improvement areas. If the ratings do not meet Kemira performance criteria, suppliers are

expected to take corrective action.

Kemira audits relevant direct material suppliers for quality and Corporate Social

Responsibility (CSR), to ensure they meet expectations. The CSR audits are conducted by a

certified third party and aim to ensure that suppliers do not violate Kemira’s Code of Conduct.

The quality audit validates suppliers’ processes related to management systems,

sustainability, workplace health and safety standards, production, quality and supply security.

Supplier assessments and audits are part of sourcing processes and target setting for the

Sourcing function and are monitored on a monthly basis. Audit results are reviewed together

with suppliers, with improvement plans created and followed up as necessary as part of

supplier management practices.

Downstream value chain

Kemira’s product portfolio consists of four major product lines. All products are documented

and labeled according to legal requirements, including the identification of hazardous

components and information on their safe use. Kemira provides Safety Data Sheets (SDS) for

all its products. Kemira's IT system for Product Lifecycle Management enables to prepare

SDSs and labels in alignment with the latest regulatory data requirements and in the official

languages of the countries where the products are manufactured, stored or sold.

Kemira actively monitors its product portfolio, including raw materials, intermediates and

process chemicals for substances of concern (SoC) and substances of very high concern

(SVHC), in accordance with our priority substance management process. Actions to manage

substances of concern and very high concern in Kemira's value chain are disclosed in the E2

Pollution section.

Kemira complies with all laws and regulations relating to chemicals and trade. Kemira does

not sell any banned products. We continuously screen substances that are covered by any

regulatory restrictions or are subject to substitution requirements imposed by non-regulatory

stakeholders. We proactively work to mitigate health, safety, environmental and image-

related risks.

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Own operations and external contractors

Kemira uses external service providers (external contractors) at Kemira locations. These

services cover maintenance, repair, turnaround, major renovation or specialty work at Kemira

sites. Kemira has a contractor management standard which defines the minimum

requirements for selecting, managing and auditing external contractors who perform work at

Kemira facilities or on behalf of Kemira at customer locations. Contractors have a mandatory

safety induction, provided before starting the actual work at Kemira's sites and contractor

work is controlled by the "permit-to-work" process. Kemira is also prepared for remediation in

the case of contractor incidents.

Action plan and resources

Kemira has planned the following actions for 2025 to prevent, mitigate and remediate the

material impacts, risks and opportunities on workers in the value chain:

• Finalizing the internal grievance and remediation study and prepare an implementation

plan and roadmap for needed actions

• Conducting supplier Ecovadis assessments, supplier quality audits and supplier Corporate

Social Responsibility (CSR) audits, per annual segmentation and risk management

practices and according to annual targets

• Assessing the currently used CSR audit methodology and opportunities relative to

alternative CSR audit methodologies

• Increasing the coverage of contractor performance evaluations and health & safety

qualifications for Kemira’s on-site contractors (external). Continuing contractor liaison

trainings to improve site-level contractor program engagement

• Actively engaging contractors to report their safety observations and to make proposals for

improvements

Kemira has dedicated persons in the Sourcing, the EHSQ and the PSRA (Product Stewardship

and Regulatory affairs) functions to carry out the actual work for the actions mentioned in the

action plan.

TARGETS RELATED TO WORKERS IN THE VALUE CHAIN

Kemira has indicators that are followed internally for impacts, risks and opportunities

management related to workers in the value chain. These targets are not defined as ESRS

targets. Kemira will continue the evaluation of the indicators in the following years.

Upstream and downstream workers in the value chain

Upstream related indicators are disclosed in more detail under E5 Resource use and circular

economy. Such indicators are, for example, the number of supplier quality and CSR audits.

Kemira has identified potential health and safety impacts, especially the risks related to

chemical safety to be the most significant potential negative impact for value chain workers.

Kemira has internal indicators related to negative impacts for Substances of Very High

Concern and Substances of Concern. Since 2016, Kemira has made priority substance

management plans for existing Substances of Very High Concern and Substances of Concern

in Kemira’s product portfolio, including for raw materials and process chemicals. Kemira aims

to cover all identified priority substances with the management plan.

External contractors working at Kemira's sites

Incidents among external contractors working at Kemira's own locations have been identified

as a material negative impact. Kemira reports its occupational safety performance indicator

as Total Recordable Injuries (TRI). TRI Frequency (TRIF) is measured as Total Recordable

Injuries per million working hours and covers both Kemira employees and contractors.

Kemira's target is to improve TRIF to 2.2 by the end of 2025 and to 1.5 by the end of 2030. The

number of external contractor injuries was 14 (16) in 2024 and the external contractor TRIF

changed from 4.8 to 5.3. Contractor working hours are tracked for the TRI frequency. Third-

party transportation companies, whether on-site or off-site, are excluded and incidental

facility services such as janitorial work, food and drink services, laundry, delivery or other

supply/resupply services are also excluded. External contractor safety performance is

described in the Health and Safety tables in the S1 Own workforce section. The target setting

process is described in detail in the S1 Own workforce section.

Kemira does not directly engage upstream and downstream value chain workers, contractors

or their legitimate representatives in the supplier management, Product Stewardship

management or target setting processes. However, Kemira does request that external

contractors make safety observations and the collected information is then utilized to

enhance external contractor safety and working conditions.

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Governance information

G1 Business conduct

MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO BUSINESS CONDUCT


Impacts, risks and opportunities		Position in the value chain	Management
Corporate culture
○	Potential failure to comply with ethical business practices or environmental, health, and safety laws could cause negative impact.	● Own operations		• Kemira's Code of Conduct, Code of Conduct for Business Partners and other business conduct policies are based on the principle that we conduct our business safely and responsibly, always adhering to the highest standards of integrity, legal compliance and ethical conduct, and that we expect the same from our business partners. • Policies are communicated to own employees and business partners, and encourage them to report on any suspected breaches or other concerns confidentially and without fear of retaliation. Reported concerns are effectively investigated and will result in corrective actions, when warranted.
●	Well established policies, procedures and practices ensure compliance with ethical business conduct and laws.	● Own operations		• Kemira maintain a systematic process to create and periodically review and revise our policies, procedures and practices. Those are effectively communicated to our staff and, where applicable, to business partners.
●	Kemira's systematic sustainable product development, focusing e.g., on improved safety and regulatory compliance, could cause positive impacts.	● Own operations		• Kemira's Product Stewardship Policy sets forth our commitments relating to product development and product lifecycle management. Those commitments include, among others, commitment to minimize safety risks and adverse effects on health and the environment and to deliver more sustainable products by replacing substances of concern.
■	Maintaining a good reputation and business practices. Valuable brand and high quality service bring competitive advantage and enable some premium pricing.	● Own operations ↘ Downstream		• Kemira's business strategy has focused on improving profitability and operational excellence while building on its brand and corporate culture. • Kemira's financial performance has consistently improved over recent years.
□ △	Ability to execute transformation from a product company to sustainability-driven business may cause risks and opportunities. Opportunity to further increase sustainability related value in marketing and branding in a fact-based manner.	● Own operations		• Kemira's business strategy towards 2030 is based on enabling more sustainable processes and products for our customers, aiming to be a global leader in sustainable chemical solutions for water intensive industries.
Corruption and bribery
○	Potential risk of Kemira employee or business partners engaging in bribery or other forms of corruption	↗ Upstream ● Own operations ↘ Downstream		• Kemira's Code of Conduct and Gifts, Entertainment and Anti-Bribery Policy together form an anti-corruption policy that is consistent with the UN Convention Against Corruption. • Mandatory Gifts, Entertainment and Anti-Bribery training for Kemira employees.
Political engagement and lobbying activities
□	Tightening regulation brings significant business opportunities especially in water treatment.	● Own operations		• Kemira's political engagement is related to the following topics: resource efficiency and circular economy; legislation about water, wastewater, waste, plastics, and chemicals; energy; climate change; industrial policy; health, safety, security and environment. When exerting political influence, Kemira follows its Code of Conduct according to which we observe neutrality with regard to political parties and candidates for public office.
● Own operations ↗ Upstream ↘ Downstream ● Positive ● Negative ○ Potential positive ○ Potential negative ■ Opportunity ▲ Risk □ Potential opportunity △ Potential risk

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Identification of material impacts, risks and opportunities

Kemira has identified its material impacts, risks and opportunities for its business conduct

matters as part of the company-wide materiality assessment which is described under

Material impacts, risks and opportunities in the General disclosure section.

TARGETS RELATED TO BUSINESS CONDUCT

Kemira has internal indicators that are followed for impact, risks and opportunities related to

Business Conduct. These targets are not as defined in ESRS. Kemira will continue the

evaluation of these indicators in the following years. Kemira nevertheless tracks the

effectiveness of its policies and actions in relation to compliance with ethical business

practices and environmental and health and safety laws through Kemira's internal controls

and audits and by following the reports filed with Kemira's Ethics and Compliance Hotline. The

results of these processes are reviewed periodically in the course of normal business process

management, with an aim to constantly improve the trend and take corrective actions if

adverse deviations are detected. Kemira's management systems, applied in many of Kemira's

locations, have been certified under the following international standards: ISO 9001 (Quality

management systems), ISO 14001 (Environmental management systems), ISO 45001

(Occupational health and safety management systems), and ISO 50001 (Energy management

systems). These standards require organizations to monitor and constantly improve their

operations, in accordance with the Plan-Do-Check-Act principle.

CORPORATE CULTURE AND BUSINESS CONDUCT POLICIES

Corporate values and Code of Conduct

Kemira’s Board of Directors has approved the Code of Conduct (the “Code”) which provides a

framework around the company's values and reflects its commitments towards its key

stakeholders. Kemira's values and Code principles are an expression of who we are as a

company and how we want to be perceived by our stakeholders. Together, the corporate

values and the Code are the foundation of Kemira's business conduct.

Kemira's corporate values were created by a large number of Kemira employees who voiced

their opinions on what they appreciate about Kemira and what kind of common beliefs and

ways of working should be strengthened within the company. The corporate values are: We

are committed to customers’ success, We drive performance and innovation, We care for

people and the environment and We succeed together. Kemira's Code emphasizes that its

decisions and actions must be guided by integrity and ethics. According to the company Code,

that how we do things is even more important than what we do. The Code gives the

organization and everyone working for Kemira the guidance and principles they need to

adhere to the highest standards of integrity, legal compliance and ethical conduct.

Being a responsible business means supporting internationally defined principles on human

rights, labor conditions, the environment and anti-corruption. We have committed to these

principles by signing The United Nations Global Compact and by reflecting these principles in

our Code. Kemira is a signatory of Responsible Care®, the voluntary initiative of the global

chemical industry.

In the company Code it is communicated to all Kemira staff that all personally responsible for

ensuring that individual actions and decisions reflect Kemira's values and the Code principles.

The Code includes 19 Code principles that reflect the company's commitments towards its

key stakeholders: the work community, customers, suppliers, markets, society and investors.

The Code sets out that each individual at Kemira must act in accordance with the company's

values and Code principles and must comply with company policies, laws and regulations. The

Code states that it applies to every employee and manager and even to the Board of

Directors. Everyone is encouraged to raise questions relating to the Code with their line

managers and it is the responsibility of all Kemira managers to support their teams in matters

relating to the Code. The Code of Conduct has been made public and it is available in multiple

languages.

In addition, all suppliers must follow Kemira's Code of Conduct for Business Partners in

relation to all of their dealings with Kemira. The Code of Conduct for Business Partners is

communicated to all suppliers during their supplier onboarding and also through the ordering

process, as part of Kemira's terms and conditions. It sets forth the minimum standards of

behavior business partners are expected to follow in terms of business conduct, human

rights, environment and safety, product safety, quality and sustainability.

Other business conduct policies

Kemira has a systematic process to issue and maintain corporate policies to document and

communicate Kemira's values, rules and expectations. Kemira's policies support the

implementation of its business strategy, values and Code of Conduct and create a framework

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for consistent and fair practices across all business units and locations. Many of the policies

extend and further elaborate on the Code of Conduct commitments and make them more

understandable and concrete for our organization and stakeholders.

Kemira's policies are prepared in respective functions within the company and they are

approved either by the Management Board or the Board of Directors, depending on the

subject matter. The policies are set out in a standardized document format, each of them has

a named policy owner and author with certain responsibilities and there is a process to review

and, where necessary, revise the policies every two years. All policies are internally available

to Kemira’s employees.

The contents of the business conduct policies are part of the training for all employees at the

beginning of their employment and there is repeat training, typically every two years. The

Code of Conduct is trained to all employees and the other policies are trained to selected

target groups of employees based on risk assessment. The training includes the key contents

of Kemira’s policies, standards and procedures and explains how to perform work in

accordance with Kemira’s policies and what consequences may follow from not complying

with the policies. The main channel to deliver training is a globally used electronic training

platform which can be used to keep track of the trainings offered to and taken by each

employee. The platform enables Kemira to monitor that mandatory trainings are completed in

a timely manner by the designated target groups.

The below table sets out a summary of the key business conduct policies.

Key business conduct policies


Policy	Key contents	Scope	Process for monitoring	Accountability	Third-party standards	Availability
Code of Conduct	19 Code principles that reflect our commitments towards our work community, customers, suppliers, markets, society and investors.	All Kemira activities, employees and managers globally	Management oversight, E&C Hotline, internal investigations, internal audits	The President & CEO	The United Nations Global Compact, Responsible Care	Publicly available on company website
Code of Conduct for Business Partners	The minimum standards of behavior business partners are expected to follow in terms of business conduct, human rights, environment and safety, product safety, quality and sustainability.	Business partners (e.g., suppliers, consultants, advisers, distributors and agents) globally	Key controls: STP3, CTC1 Periodic audits of business partners, E&C Hotline	SVP Sourcing	OECD Guidelines for Multinational Enterprises	Publicly available on company website
Kemira Group Sustainability Policy	Policy outlines the commitment and management of sustainability requirements within Kemira. It states 12 commitments with respect to stakeholders, environment and governance.	All Kemira operations and employees globally, contractors working at Kemira sites and those working on behalf of and/or in alliance with Kemira.	ISO 9001, 14001, 45001, 50001 certificates (for certain sites) and certifiability as management target	EVP Operational Excellence & Sustainability		Publicly available on company website
Gifts, entertainment and anti-bribery policy	Kemira has a zero tolerance towards bribery and corruption. Kemira and its employees must never offer, pay, give, solicit or accept a bribe in any form. The policy explains what kind of gifts and hospitality are acceptable in our business.	Policy applies to gifts and entertainment offered or received by any Kemira company or employee to or from any person outside of Kemira.	Management oversight, E&C Hotline, internal investigations, internal audits	Group General Counsel		Internally available to all Kemira staff
Recruitment Policy	Policy reinforces Kemira’s diversity and inclusion statement, respect for human rights and equal opportunity principle.	Policy applies to to all internal and external recruitments leading to a candidate’s employment within Kemira Group globally.	Key controls: HR1	EVP HR	UN Global Compact	Internally available to all Kemira staff

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Policy	Key contents	Scope	Process for monitoring	Accountability	Third-party standards	Availability
Sourcing & Procurement Policy	All commitments to suppliers are to be managed by Sourcing department personnel only, subject to a few minor exceptions: All sourcing and procurement must be aligned with the published company values and sustainability goals. Conflicts of interest must be strictly avoided and the principle of impartiality must be followed. No personal purchases are to be connected to company purchases.	Policy applies to all purchases made within Kemira Group save for certain exclusions. Policy applies to purchasing of direct materials, corporate services, manufacturing related capital and operational expenditures, energy and logistics.	Key controls: STP2-3, STP 5-9	EVP Operational Excellence & Sustainability		Internally available to all Kemira staff
Competition Law Compliance Policy	Kemira strongly supports fair competition and competes vigorously, yet fairly and ethically, and within the framework of applicable competition laws. Kemira does not enter into any anti-competitive agreements or carry out any other anti- competitive activities.	Policy applies globally to all companies and employees within Kemira Group. The Policy applies to Kemira’s actual and potential competitors, customers, distributors and suppliers as well as trade associations.	Management oversight, E&C Hotline, internal investigations	Group General Counsel		Internally available to all Kemira staff
Product Stewardship Policy	Kemira is committed to the set of principles including among others controlling and minimizing safety risks and adverse effects on health and the environment that could be caused by the products throughout our value chain; and replacing substances of concern that would pose an unacceptable risk to human health, safety or environment, making risk assessments covering regulatory compliance, providing safe use guidance to our customers.	Policy describes the commitment and management of requirements for product stewardship and chemicals regulatory compliance within Kemira globally.	Management oversight	Head of Product Safety & Regulatory Affairs	Responsible Care Global Charter	Internally available to all Kemira staff
Logistics and Transportation Policy	Policy aim among others at ensuring efficient and well performing logistics network that operates in a sustainable and safe manner in full compliance with all laws and regulations applicable to transportation and warehousing of chemicals.	Policy applies to sourcing and operative management of transportation and logistics activities in all Kemira Group companies globally.	Management oversight	SVP Supply Chain Management		Internally available to all Kemira staff
Trade Compliance Policy	Kemira’s international trade transactions are carried out in accordance with applicable laws, regulations, licensing requirements and procedures of the country of import/ export/re-export and/or the country of origin.	Policy sets forth the requirements and provides general principle to be complied with in Kemira’s international import and export trade operations.	Management oversight	VP Product Safety & Regulatory Affairs		Internally available to all Kemira staff
Misconduct Reporting Policy	Policy encourages everyone working for or with Kemira to report any suspicion of misconduct confidentially and without fear of retaliation. Policy sets out the procedures applicable when reporting misconduct to Kemira, including how these reports will be followed up, and how the reporters are protected. Kemira supports an open culture that encourages everyone to speak freely and without fear of harassment. Kemira provides a channel for reporting any suspicion of misconduct confidentially and without fear of retaliation. A reporting person will not be dismissed, bullied, discriminated or otherwise retaliated against for making a report or complaint. Any person, regardless of position, who engages in retaliatory behavior will be subject to disciplinary action.	Policy applies to reporting of breaches of Kemira’s Code of Conduct; misrepresentation of Kemira’s financial information, criminal offenses, and other violations of the applicable law. Policy applies to employees of Kemira group, whether current or past, including trainees, employee candidates and those who have otherwise carried out work for Kemira, for example under a self-employed consultant status, external service provider and contingent workforce; shareholders and persons belonging to the administrative, management or supervisory body of any Kemira Group company; and anyone working under the supervision and direction of contractors, subcontractors and suppliers of Kemira Group. Policy is global.	E&C Hotline, internal investigations	Group General Counsel	EU Whistleblower Directive	Internally available to all Kemira staff. Confidential and anonymous reporting channel is publicly available to anyone on Kemira’s website.

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Promoting corporate culture

Kemira’s corporate culture is based on its corporate values and the Code of Conduct. As we

operate in chemicals manufacturing, occupational safety has been strongly emphasized as a

priority. The importance of a diverse and inclusive workplace has been recognized as an

important success factor in our globally operating organization.

Sustainability transformation is regarded as the cornerstone of Kemira’s business strategy.

Kemira’s strategic goal is to become the leading provider of sustainable chemical solutions for

water intensive industries. Kemira aims to expand its renewable solutions portfolio and to

reach EUR 500 million in revenue by the end of 2030.

Kemira’s leadership has acknowledged the importance of synchronizing culture and strategy

which will lead to improved employee engagement, higher customer satisfaction and

ultimately to increased revenue and profitability.

To drive the implementation of Kemira’s values, the Code of Conduct, safety, diversity and

inclusion and the sustainability focused business strategy, Kemira’s leadership has defined a

set of principles, habits and behaviors that are the basis of Kemira’s corporate culture. These

principles, habits and behaviors are communicated to all staff through trainings and

communication campaigns and the effectiveness of cultural development is measured

through regular employee engagement surveys.

Kemira’s policy commitments become visible in the organization through strategic target

setting, including targets covering safety, people, water, circularity and climate topics. Our

commitments are also visible through our management processes. Besides these

management processes, we create task groups for specific topics, like the focus area-based

sustainability programs or the Human Rights Council, which is a cross-functional group

developing and discussing Kemira human rights practices. We have established a

comprehensive framework to advance our commitment to diversity, equity and inclusion (DEI).

Employees are the key contributor to the organizational culture, driving our values and

shaping the environment in which we operate. Kemira has adopted methods of continuous

listening and feedback and is working with a service provider administering anonymous

employee surveys and using external benchmarks.The results of the employee surveys are

made available to employees and managers. Participation rates typically range from 70% to

80%. Kemira uses short engagement pulse surveys twice a year to follow the development of

the Engagement Index, an internal key performance indicator describing the engagement

level of Kemira’s staff. Our employee engagement is above the external benchmark.

Reporting and investigating concerns

Kemira’s Management Board has approved the Misconduct Reporting Policy and the

Investigation Procedure, which are available to all Kemira staff. According to the Misconduct

Reporting Policy, Kemira supports an open culture and encourages everyone working for or

with Kemira to report any suspicion of misconduct confidentially and without fear of

retaliation. The policy sets out the procedures on how reports alleging misconduct will be

followed up and how the reporters are protected. The Investigation Procedure sets out the

standard investigation process to assess allegations of non-compliance with the Code of

Conduct or with company policies.

Kemira has an externally hosted Ethics and Compliance hotline (whistleblower mechanism),

which enables the reporting of suspected violations of the Code of Conduct and other ethical

concerns in multiple languages. A report can be filed either anonymously or with a disclosure

of the reporter's name. The reporting channel is available to all Kemira employees and

external persons, such as anyone working for the contractors and suppliers of Kemira.

Information about the Ethics and Compliance hotline is shared with employees on Kemira’s

intranet, in training and in communication campaigns. Kemira's website has guidance for

external persons. Further, there is an e-mail address that can be used by third-parties to

report cases of potential misconduct relating to Kemira or to our business partners. This

information is available on our website and in Kemira’s Code of Conduct for Business

Partners.

All allegations of potential violations of our Code of Conduct made in good faith will receive a

fair and comprehensive investigation, using external assistance where needed. All misconduct

reports are treated confidentially. The Investigation Procedure describes the roles and

responsibilities, general principles and the process related to the internal investigations. The

investigations are based on the principles of neutrality, objectivity, professionalism,

compliance with applicable labor and privacy laws and the presumption of innocence.

Kemira’s Ethics and Compliance Committee consists of the Group General Counsel, EVP HR,

the Chief Auditor and the Director, Ethics and Compliance. The Ethics and Compliance

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Committee coordinates investigations of internally or externally reported misconduct. The

Committee may escalate a matter to the President & CEO and/or to relevant Management

Board member(s), and the Committee reports to the Audit Committee of the Board of

Directors.

In addition to the confidential reporting channel and the investigations overseen by the Ethics

and Compliance Committee, Kemira also has an Internal Audit function which, in addition to

its other duties, is involved in identifying, reporting and investigating unlawful behavior and

violations of the Code of Conduct. Internal auditors have complete and unrestricted access to

all Kemira activities. The Internal Audit function is free to determine the scope of internal

auditing, the ways of performing its work and the communication of its findings. The Internal

Audit function reports its material findings quarterly to the Audit Committee of the Board of

Directors. The Internal Audit also reports all of its observations to the management and to the

auditor.

CORRUPTION AND BRIBERY

Kemira’s policy is not to accept any form of corruption, such as bribery, facilitation payments,

embezzlement, fraud, conflict of interest, or money laundering. Kemira’s policy on corruption

and bribery is documented in the Kemira Code of Conduct and Kemira Group Gifts,

Entertainment and Anti-Bribery Policy documents. The policy is consistent with the UN

Convention Against Corruption.

The company’s anti-corruption principles are communicated to all of its employees through

recurring, mandatory training. The members of Kemira’s Board of Directors are aware of the

company’s anti-corruption principles. The principles are communicated to all of Kemira’s

suppliers and vendors who are required to commit to Kemira’s business ethics principles as a

condition for the establishment of a business relationship.


Anti-corruption training for white-collar employees by region 1)	2024
	Number of employees	Coverage, %
EMEA	1,561	92
APAC	488	97
Americas	751	92

1) White-collar employees who have completed the training at least once during 2022-2024

Kemira has assessed which of its operations are most at risk in respect of corruption and

bribery. Geographic location has a significant impact on corruption risk. While Kemira's

headquarters is based in Finland which ranks second best world-wide in Transparency

International's Corruption Perceptions Index 2023 publication, Kemira has operations in

nearly 40 countries and sells products to customers in over 100 countries, including several

countries where the risk of corruption is significant. In terms of the customer base, Kemira

sells water treatment chemicals to public utilities, such as municipal water treatment plants,

which by their nature pose a higher risk of public corruption.

Kemira has addressed these risks in its internal anti-corruption training and by establishing a

third-party due diligence process applicable to its distributors and sales agents. The due

diligence process has a risk-based approach, considering the corruption perception index in

the geographic location, the type of the customer segment and the foreseeable value of the

annual transactions. Depending on the risk classification, distributors and sales agents must

respond to inquiries about themselves and must acknowledge a commitment to Kemira’s

business ethics principles.

To prevent and detect corruption, Kemira relies on its globally implemented key controls

which cover the use of the company’s funds and assets, maintaining accurate accounting and

records as well as sales and purchase contracting. The key controls have been approved by

Kemira's Management Board. The verification of compliance with the key controls is based on

the three-lines-of-defence-model:

1. Employees and management are expected to execute the process activities as described

in the key controls guidance,

2. Management is responsible for testing the key controls, and

3. Kemira’s Internal Audit is responsible for verifying that controls have been performed and

tested. The Internal Audit reports to the Board of Director’s Audit Committee.

Furthermore, Kemira maintains an Ethics and Compliance Hotline, a confidential reporting

channel where any employee or any external person can report allegations of corruption.

More information on the Ethics and Compliance Hotline can be found under S1 Own workforce.

Any allegations or detected incidents of corruption are addressed through an internal

investigation which is overseen by the Compliance Committee, as described in the section on

Reporting and investigating concerns above. The investigators are separate to the

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management involved in the matter. The results of the investigation are shared with the

relevant management and an overview of all investigations is reported to the Audit Committee

of the Board of Directors.

In 2024, Kemira did not have any convictions or fines for violation of anti-corruption and anti-

bribery laws. During the year Kemira recorded eight allegations related to violation of internal

anti-corruption and anti-bribery policies. Diligent internal investigation confirmed seven

incidents where own employees had breached internal procedures relating to anti-corruption

or anti-bribery. In total seven own employees were either dismissed or otherwise disciplined

for confirmed corruption or bribery-related incidents.

POLITICAL INFLUENCE AND LOBBYING ACTIVITIES

According to Kemira’s Code of Conduct, we observe neutrality with regard to political parties

and candidates for public office. We do not take part in political activities nor make corporate

donations to political parties or candidates. Neither the names nor the assets of Kemira shall

be used to promote the interests of political parties or candidates.

The above-mentioned Code principle is further elaborated in Kemira Group Sponsorship and

Donation Policy and Kemira Group Gifts, Entertainment and Anti-bribery Policy, which both

prohibit any financial support to politicians, political parties or political organizations.

No financial or any in-kind political contributions paid by Kemira have come to Kemira's

attention during 2024.

Kemira maintains dialogue with stakeholders that shape and participate in the legislative

processes relevant to Kemira, including the European Commission, members of the European

Parliament and the Council of the EU. The political influence is mainly, but not exclusively,

carried out through the trade associations in which Kemira is a member, that is, Cefic – the

European Chemical Industry Council – and Kemianteollisuus ry, the national chemical industry

association in Finland.

Kemira has engaged mainly those EU policies which belong to:

• Chemical Strategy for Sustainability,

• EU Water and Wastewater Regulations,

• EU Packaging Regulations,

• Food Contact Material Regulation, and Bioeconomy.

Kemira’s communication activities include mainly personal discussions with members of the

EU institutions, submission of position papers, participation in public consultations and

stakeholder workshops.

Kemira has been registered in the EU’s Transparency Register with registration number

934980845504-83. Kemira has committed to complying with the code of conduct of the

transparency register.

Kemira’s engagement in the EU law making process is conducted by its Public Affairs

department, managed by the Corporate Communications Department, and supervised by

Kemira’s Management Board. Members of the Management Board determine and oversee the

strategic direction of Kemira’s public affairs objectives and act like a supervisory and approval

body.

The following members of Kemira's Management Board and Board of Directors have held a

comparable position in public administration (including regulators) in the two years preceding

the year 2024:

• Antti Salminen, President & CEO of Kemira since 2024, has been a member of the Board of

Directors of the Geological Survey of Finland since 2020.

• Tina Sejersgård Fanø, a member of the Board of Directors of Kemira since 2022, has been

the chair of the Board in Innovationsfonden (Denmark) until the year 2022.

• Timo Lappalainen, a member of the Board of Directors of Kemira Oyj since 2014, has been a

member of the council in the Helsinki Region Chamber of Commerce until the year 2022.

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DATA POINTS DERIVING FROM OTHER EU LEGISLATION

The table below includes all of the data points that derive from other EU legislation as listed in ESRS 2 appendix B, indicating where the data points can be found in Kemira's Annual Review and

which data points are assessed as ‘Not material’.


ESRS	Disclosure Requirement	Data point	Disclosure Requirement related data point	Section in Sustainability Statement
ESRS 2	GOV-1	21 (d)	Board's gender diversity	General disclosures
ESRS 2	GOV-1	21 ( e)	Percentage of board members who are independent	General disclosures
ESRS 2	GOV-4	30	Statement on due diligence	General disclosures
ESRS 2	SBM-1	40 (d) i	Involvement in activities related to fossil fuel activities	Not material
ESRS 2	SBM-1	40 (d) ii	Involvement in activities related to chemical production	General disclosures
ESRS 2	SBM-1	40 (d) iii	Involvement in activities related to controversial weapons	Not material
ESRS 2	SBM-1	40 (d) iv	Involvement in activities related to cultivation and production of tobacco	Not material
ESRS E1	E1-1	14	Transition plan to reach climate neutrality by 2050	E1 - Strategy and transition plan
ESRS E1	E1-1	16 (g)	Undertakings excluded from Paris-aligned Benchmarks	E1 - Strategy and transition plan
ESRS E1	E1-4	34	GHG emission reduction targets	E1 - Targets related to Climate change
ESRS E1	E1-5	38	Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)	E1 - Energy consumption
ESRS E1	E1-5	37	Energy consumption and mix	E1 - Energy consumption
ESRS E1	E1-5	40-43	Energy intensity associated with activities in high climate impact sectors	E1 - Energy consumption
ESRS E1	E1-6	44	Gross Scope 1, 2, 3 and Total GHG emissions	E1 - Greenhouse gas emissions
ESRS E1	E1-6	53-55	Gross GHG emissions intensity	E1 - Greenhouse gas emissions
ESRS E1	E1-7	56	GHG removals and carbon credits	E1 - Greenhouse gas emissions
ESRS E1	E1-9	66	Exposure of the benchmark portfolio to climate-related physical risks	Not material
ESRS E1	E1-9	66 (a)	Disaggregation of monetary amounts by acute and chronic physical risk	Not material
ESRS E1	E1-9	66 (c)	Location of significant assets at material physical risk	Not material
ESRS E1	E1-9	67 (c)	Breakdown of the carrying value of its real estate assets by energy-efficiency classes	Not material
ESRS E1	E1-9	69	Degree of exposure of the portfolio to climate related opportunities	Not material
ESRS E2	E2-4	28	Amount of each pollutant listed in Annex II of the European Pollutant Release and Transfer Register regulation emitted to air, water and soil	E2 - Pollution to air, water and soil
ESRS E3	E3-1	9	Water and marine resources	E3 - Policies related to water and marine resources
ESRS E3	E3-1	13	Dedicated policy	Not material
ESRS E3	E3-1	14	Sustainable oceans and seas	Not material
ESRS E3	E3-4	28 (c)	Total water recycled and reused	E3 - Water consumption
ESRS E3	E3-4	29	Total water consumption in m3 per net revenue on own operations	E3 - Water consumption
ESRS 2	SBM3 - E4	16 (a) i, 16 (b), 16 (c)		E4 - Strategy and transition plan
ESRS E4	E4-2	24 (b)	Sustainable land / agriculture practices or policies	Not material
ESRS E4	E4-2	24 (c)	Sustainable oceans / seas practices or policies	Not material
ESRS E4	E4-2	24 (d)	Policies to address deforestation	Not material

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ESRS	Disclosure Requirement	Data point	Disclosure Requirement related data point	Section in Sustainability Statement
ESRS E5	E5-5	37 (d)	Non-recycled waste	E5 - Waste
ESRS E5	E5-5	39	Hazardous waste and radioactive waste	E5 - Waste
ESRS 2	SBM3 - S1	14 (f)	Risk of incidents of forced labour	Not material
ESRS 2	SBM3 - S1	14 (g)	Risk of incidents of child labour	Not material
ESRS S1	S1-1	20	Human rights policy commitments	S1 - Policies related to Own workforce
ESRS S1	S1-1	21	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1	S1 - Policies related to Own workforce
ESRS S1	S1-1	22	processes and measures for preventing trafficking in human beings	S1 - Policies related to Own workforce
ESRS S1	S1-1	23	workplace accident prevention policy or management system	S1 - Policies related to Own workforce
ESRS S1	S1-3	32 (c)	grievance/complaints handling mechanisms	S1 - Incidents, complaints and severe human rights impacts
ESRS S1	S1-14	88 (b) and (c)	Number of fatalities and number and rate of work- related accidents	Not material
ESRS S1	S1-14	88 (e)	Number of days lost to injuries, accidents, fatalities or illness	S1 - Health and safety
ESRS S1	S1-16	97 (a)	Unadjusted gender pay gap	S1 - Remuneration
ESRS S1	S1-16	97 (b)	Excessive CEO pay ratio	S1 - Remuneration
ESRS S1	S1-17	103 (a)	Incidents of discrimination	S1 - Incidents, complaints and severe human rights impacts
ESRS S1	S1-17	104 (a)	Non-respect of UNGPs on Business and Human Rights and OECD	S1 - Incidents, complaints and severe human rights impacts
ESRS 2	SBM3 – S2	11 (b)	Significant risk of child labour or forced labour in the value chain	S2 - Strategy and business model
ESRS S2	S2-1	17	Human rights policy commitments	S2 - Policies related to workers value chain
ESRS S2	S2-1	18	Policies related to value chain workers	S2 - Policies related to workers value chain
ESRS S2	S2-1	19	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	S2 - Policies related to workers value chain
ESRS S2	S2-1	19	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8	S2 - Policies related to workers value chain
ESRS S2	S2-4	36	Human rights issues and incidents connected to its upstream and downstream value chain	S2 - Actions related to workers value chain
ESRS S3	S3-1	16	Human rights policy commitments	Not material
ESRS S3	S3-1	17	non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines	Not material
ESRS S3	S3-4	36	Human rights issues and incidents	Not material
ESRS S4	S4-1	16	Policies related to consumers and end-users	Not material
ESRS S4	S4-1	17	Non-respect of UNGPs on Business and Human Rights and OECD guidelines	Not material
ESRS S4	S4-4	35	Human rights issues and incidents	Not material
ESRS G1	G1-1	10 (b)	United Nations Convention against Corruption	Not material
ESRS G1	G1-1	10 (d)	Protection of whistle-blowers	Not material
ESRS G1	G1-4	24 (a)	Fines for violation of anti-corruption and anti-bribery laws	G1 - Corruption and bribery
ESRS G1	G1-4	24 (b)	Standards of anti- corruption and anti-bribery	G1 - Corruption and bribery

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Consolidated

Income Statement


		Year ended 31 December
EUR million	Note	2024	2023
Revenue	2.1.	2,948.1	3,383.7
Other operating income	2.2.	2.1	8.6
Operating expenses	2.2.	-2,399.8	-2,852.3
Share of the results of associates	6.2.	0.3	0.1
EBITDA		550.7	540.0
Depreciation, amortization and impairments	2.4.	-187.4	-203.6
Operating profit (EBIT)		363.2	336.4
Finance income	2.5.	18.2	12.7
Finance expenses	2.5.	-43.0	-49.3
Exchange differences	2.5.	-2.1	-7.7
Finance costs, net	2.5.	-26.9	-44.4
Profit before tax		336.3	292.0
Income taxes	2.6.	-73.6	-80.7
Net profit for the period		262.7	211.3

Net profit attributable to
Equity owners of the parent company		249.4	199.1
Non-controlling interests	6.2.	13.2	12.2
Net profit for the period		262.7	211.3

Earnings per share for net profit attributable to the equity owners of the parent company, EUR
Basic	2.7.	1.62	1.30
Diluted	2.7.	1.61	1.28

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

Consolidated

Comprehensive Income


		Year ended 31 December
EUR million	Note	2024	2023
Net profit for the period		262.7	211.3

Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences in translating foreign operations		7.7	-16.9
Cash flow hedges		-14.1	-54.1
Items that will not be reclassified subsequently to profit or loss
Other shares		-27.9	-61.3
Remeasurements of defined benefit plans		10.7	18.9
Other comprehensive income for the period, net of tax	2.8.	-23.6	-113.4

Total comprehensive income for the period		239.1	97.9

Total comprehensive income attributable to
Equity owners of the parent company		225.9	84.9
Non-controlling interests	6.2.	13.2	13.0
Total comprehensive income for the period		239.1	97.9

Items in the Consolidated Statement of Comprehensive Income are disclosed net of tax. The income tax relating to each

component of other comprehensive income is disclosed in Note 2.8. Other comprehensive income.

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying

notes.

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Consolidated Balance Sheet


		As at 31 December
EUR million	Note	2024	2023
ASSETS
NON-CURRENT ASSETS
Goodwill	3.1.	490.6	480.9
Other intangible assets	3.2.	44.5	51.1
Property, plant and equipment	3.3.	964.5	939.6
Right-of-use assets	3.4.	131.8	123.0
Investments in associates	6.2.	4.8	4.8
Other shares	3.5.	270.5	305.4
Deferred tax assets	4.4.	31.5	31.8
Other financial assets	5.4.	6.4	7.9
Receivables of defined benefit plans	4.5.	115.7	106.3
Total non-current assets		2,060.4	2,050.9

CURRENT ASSETS
Inventories	4.1.	307.9	281.8
Loan receivables	5.4.	48.3	0.3
Trade receivables and other receivables	4.2.	420.1	468.2
Current income tax assets		15.1	29.9
Cash and cash equivalents	5.4.	519.2	402.5
Total current assets		1,310.7	1,182.7

Assets classified as held-for-sale	3.7.	9.9	255.6

Total assets		3,381.0	3,489.3

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.


		As at 31 December
EUR million	Note	2024	2023
EQUITY AND LIABILITIES
EQUITY
Equity attributable to equity owners of the parent company
Share capital		221.8	221.8
Share premium		257.9	257.9
Fair value and other reserves		121.5	163.4
Unrestricted equity reserve		196.3	196.3
Translation differences		-46.1	-53.8
Treasury shares		-10.3	-11.6
Retained earnings		1,044.4	890.9
Total equity attributable to equity owners of the parent company	5.2.	1,785.4	1,664.8
Non-controlling interests	6.2.	18.1	19.4
Total equity		1,803.5	1,684.2

NON-CURRENT LIABILITIES
Interest-bearing liabilities	5.3.	547.1	615.7
Other financial liabilities	5.4.	10.8	10.8
Deferred tax liabilities	4.4.	73.1	81.3
Liabilities of defined benefit plans	4.5.	73.1	69.8
Provisions	4.6.	37.9	37.8
Total non-current liabilities		742.0	815.4

CURRENT LIABILITIES
Interest-bearing liabilities	5.3.	263.6	322.1
Trade payables and other liabilities	4.3.	517.8	489.4
Current income tax liabilities		24.2	56.6
Provisions	4.6.	17.9	16.9
Total current liabilities		823.6	884.9

Total liabilities		1,565.6	1,700.3

Liabilities classified as held-for-sale	3.7.	12.0	104.8

Total equity and liabilities		3,381.0	3,489.3

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Consolidated Statement of Cash Flow


EUR million	Note	2024	2023
CASH FLOW FROM OPERATING ACTIVITIES
Net profit for the period		262.7	211.3
Adjustments for
Depreciation, amortization and impairments	2.4.	187.4	203.6
Income taxes	2.6.	73.6	80.7
Finance costs, net	2.5.	26.9	44.4
Share of the results of associates	6.2.	-0.3	-0.1
Gains and losses on sale of non-current assets		10.5	98.6
Other adjustments		14.7	2.1
Cash flow before change in net working capital		575.6	640.7

Change in net working capital
Increase (-) / decrease (+) in inventories		-25.2	97.6
Increase (-) / decrease (+) in trade and other receivables		37.7	19.0
Increase (+) / decrease (-) in trade payables and other liabilities		16.0	-101.7
Change in net working capital		28.5	14.9

Cash flow from operations before financing items and taxes		604.0	655.6

Interests paid		-36.8	-41.6
Interests received		14.2	8.0
Other finance items, net		-7.3	14.7
Income taxes paid		-89.6	-90.8
Net cash generated from operating activities		484.6	546.0

The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.


EUR million	Note	2024	2023
CASH FLOW FROM INVESTING ACTIVITIES
Purchases of subsidiaries and asset acquisitions, net of cash acquired		-3.2	-1.9
Capital expenditure in property, plant and equipment and intangible assets		-167.3	-204.9
Decrease (+) / increase (-) in loan receivables		-46.5	0.4
Proceeds from sale of subsidiaries and businesses, net of cash disposed		143.9	9.0
Proceeds from sale of other shares		0.0	0.4
Proceeds from sale of property, plant and equipment, and intangible assets		0.2	0.2
Net cash used in investing activities		-72.8	-196.7

CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from non-current interest-bearing liabilities (+)	5.1.	50.0	0.2
Repayments of non-current interest-bearing liabilities (-)	5.1.	-200.0	0.0
Short-term financing, net increase (+) / decrease (-)	5.1.	4.3	-50.7
Repayments of lease liabilities		-31.7	-37.3
Dividends paid to equity owners of the parent company		-104.7	-95.2
Dividends paid to non-controlling interest		-14.4	-8.3
Net cash used in financing activities		-296.6	-191.3

Net increase (+) / decrease (-) in cash and cash equivalents		115.2	158.0

Cash and cash equivalents on Dec 31		519.2	402.5
Exchange gains (+) / losses (-) in cash and cash equivalents		1.4	-6.1
Cash and cash equivalents on Jan 1		402.5	250.6
Net increase (+) / decrease (-) in cash and cash equivalents		115.2	158.0

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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	—	—	—	—	—	—	249.4	249.4	13.2	262.7
Other shares	—	—	-27.9	—	—	—	—	-27.9	—	-27.9
Exchange differences in translating foreign operations	—	—	—	—	7.7	—	—	7.7	—	7.7
Cash flow hedges	—	—	-14.1	—	—	—	—	-14.1	—	-14.1
Remeasurements of defined benefit plans	—	—	—	—	—	—	10.7	10.7	—	10.7
Total other comprehensive income	—	—	-41.9	—	7.7	—	10.7	-23.6	—	-23.6
Total comprehensive income	—	—	-41.9	—	7.7	—	260.1	225.9	13.2	239.1

Transactions with owners
Dividends paid	—	—	—	—	—	—	-104.7	-104.7	-14.4	-119.1
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
As part of Pension fund Neliapila surplus return, shares were transferred to Kemira Oyj	—	—	—	—	—	-1.9	—	-1.9	—	-1.9
Share-based payments	—	—	—	—	—	—	-2.2	-2.2	—	-2.2
Other items	—	—	—	—	—	—	0.2	0.2	—	0.2
Total transactions with owners	—	—	—	—	—	1.4	-106.7	-105.3	-14.4	-119.7

Equity on December 31, 2024	221.8	257.9	121.5	196.3	-46.1	-10.3	1,044.4	1,785.4	18.1	1,803.5

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	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	—	—	—	—	—	—	199.1	199.1	12.2	211.3
Other shares	—	—	-61.3	—	—	—	—	-61.3	—	-61.3
Exchange differences in translating foreign operations	—	—	—	—	-17.8	—	—	-17.8	0.9	-16.9
Cash flow hedges	—	—	-54.1	—	—	—	—	-54.1	—	-54.1
Remeasurements of defined benefit plans	—	—	—	—	—	—	18.9	18.9	—	18.9
Total other comprehensive income	—	—	-115.5	—	-17.8	—	18.9	-114.3	0.9	-113.4
Total comprehensive income	—	—	-115.5	—	-17.8	—	218.1	84.9	13.0	97.9

Transactions with owners
Dividends paid	—	—	—	—	—	—	-95.2	-95.2	-8.3	-103.5
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	—	—	—	—	—	—	3.3	3.3	—	3.3
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	-91.8	-89.9	-8.3	-98.2

Equity on December 31, 2023	221.8	257.9	163.4	196.3	-53.8	-11.6	890.9	1,664.8	19.4	1,684.2

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Notes to the Consolidated Financial Statements

1. The group's material accounting policies for the consolidated financial statements

GROUP PROFILE

Kemira Oyj is a Finnish public limited liability company,

domiciled in Helsinki, with its registered address at

Energiakatu 4, FI-00180 Helsinki, Finland. Kemira Oyj's shares

are listed on Nasdaq Helsinki Oy. The parent company Kemira

Oyj and its subsidiaries together form the Kemira Group. A

list of subsidiaries is disclosed in Note 6.2.

Kemira is a global chemicals company serving customers in

water-intensive industries. The company provides expertise

in applications and chemicals that improve customers'

efficient use of water, energy and raw materials. Kemira’s

two business segments, Pulp & Paper and Industry & Water,

focus on customers in the pulp & paper and water treatment

industries, respectively.

The Board of Directors of Kemira Oyj has approved the

Consolidated Financial Statements for publication at its

meeting on February 10, 2025 . Under the Finnish Limited

Liability Companies Act, the General Meeting of Shareholders

is entitled to decide on the adoption of the financial

statements. A copy of the Consolidated Financial Statements

is available at www.kemira.com or at Energiakatu 4, FI-00180

Helsinki, Finland.

In compliance with the reporting requirements of the

European Single Electronic Format (ESEF), Kemira also

publishes the Consolidated Financial Statements and the

Board of Directors' report as an xHTML file, which is available

at www.kemira.com.

BASIS OF PREPARATION FOR THE

CONSOLIDATED FINANCIAL STATEMENTS

The Group has prepared its Consolidated Financial

Statements in accordance with the International Financial

Reporting Standards (IFRS) and International Financial

Reporting Interpretations Committee (IFRIC) interpretations,

adopted by the European Union. The Consolidated Financial

Statements have been prepared in accordance with IFRS

standards and IFRIC Interpretations, effective on December

31, 2024 . The Notes to the Consolidated Financial Statements

also comply with the requirements of the Finnish accounting

and corporate legislation that supplement the IFRS

regulations.

The Consolidated Financial Statements are presented in EUR

million and have been prepared based on historical cost,

except for the items measured at fair value through other

comprehensive income, including unlisted PVO/TVO shares,

financial assets and liabilities at fair value through profit or

loss and share-based payments which are measured at fair

value.

Individual figures presented in the Consolidated Financial

Statements have been rounded to the nearest exact figure.

Therefore, the sum of the individual figures may deviate from

the sum figure presented in the Consolidated Financial

Statements. The key figures are calculated using exact

values.

NEW, AMENDED IFRS STANDARDS AND

IFRIC INTERPRETATIONS IN EFFECT IN

2024

For the first time, the Group has applied the following

standards and amendments to its annual reporting period

commencing January 1, 2024:

• Amendments to the standard IAS 1, Classification of

liabilities into current and non-current. The amendments

clarify how to classify debts as current or non-current

when the entity has the right to postpone the payment of

the debt for at least 12 months. The amendments did not

have any significant impact on the Consolidated Financial

Statements.

• Amendments to IFRS 16 Leases: Lease Liability in Sale and

Leaseback. The amendment requires a seller-lessee to

subsequently measure lease liabilities arising from a

leaseback in a way that it does not recognize any amount

of the gain or loss that relates to the right of use it retains.

The new requirements do not prevent a seller-lessee from

recognizing in profit or loss any gain or loss relating to the

partial or full termination of a lease. The amendments did

not have any significant impact on the Consolidated

Financial Statements.

• Amendments to IAS 7 Statement of Cash Flows and IFRS 7

Financial Instruments: Disclosures: Supplier Finance

Arrangements. The amendment provides additional

disclosures about supplier finance arrangements that

enable investors to assess the effects on a company's

liabilities, cash flow and exposure to liquidity risk. The

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amendments did not have any significant impact on the

Consolidated Financial Statements.

NEW, AMENDED IFRS STANDARDS AND

IFRIC INTERPRETATIONS NOT YET

ADOPTED

• Amendments to IAS 21 The Effects of Changes in Foreign

Exchange Rates: Lack of Exchangeability (effective from 1

January 2025). The amendment provides guidance on

identifying situations where a currency cannot be

considered freely exchangeable and on how to take this

into account in the exchange rate used in reporting and

when providing additional information in these situations.

The amendment is not expected to have any significant

impact on the Consolidated Financial Statements.

• The new IFRS 18 standard (Presentation and Disclosure in

Financial Statements) replaces IAS 1 Presentation of

Financial Statements (effective from 1 January 2027, early

application is permitted). The key new concepts in IFRS 18

relate to the structure of the income statement with

specified subtotals, the presentation of management

performance measures and the consolidation and

disaggregation of information in primary statements and

notes to the financial statements. The Group is currently

assessing the impact of the new standard.

CONSOLIDATION PRINCIPLES OF

SUBSIDIARIES AND NON-CONTROLLING

INTERESTS

The Consolidated Financial Statements include the parent

company Kemira Oyj and its subsidiaries. Subsidiaries are all

entities that the Group has control over (voting rights

generally being over 50 percent). The Group controls an

entity when the Group is exposed to, or has rights to, variable

returns from its involvement with the entity and when it has

the ability to affect those returns through its power over the

entity. Subsidiaries are fully consolidated from the date on

which control is transferred to the Group. They are de-

consolidated from the date on which this control ceases.

All intra-group transactions are eliminated when preparing

the Consolidated Financial Statements. Intra-group

shareholdings are eliminated using the acquisition method.

The consideration transferred for the acquisition of a

subsidiary is defined as an aggregate of the fair values of the

assets transferred, the liabilities assumed and the equity

interest issued by the Group. The consideration transferred

may include the fair value of any asset or liability resulting

from a contingent consideration arrangement. Acquisition-

related costs are expensed as incurred. Identifiable assets

acquired and any liabilities and contingent liabilities that are

assumed in a business combination are measured at their

fair values on the acquisition date. On an acquisition-by-

acquisition basis, the Group recognizes any non-controlling

interest in the acquiree, either at fair value or at the non-

controlling interest’s proportionate share of the acquiree’s

net assets.

The amount that exceeds the aggregate of the consideration

transferred, the amount of any non-controlling interest in the

acquiree and the acquisition-date fair value of any previous

equity interest in the acquiree over the fair value of the

Group’s share of the net assets acquired is recognized as

goodwill on the Balance Sheet. If this is less than the fair

value of the net assets of the subsidiary acquired by bargain

purchase, the difference is recognized directly in the Income

Statement.

Net profit or loss for the financial year and other

comprehensive income attributable to the equity holders of

the parent company and to non-controlling interests is

presented in the Income Statement and in the Statement of

Comprehensive Income. The portion of equity attributable to

non-controlling interests is stated as an individual item,

separate to the equity held by equity holders of the parent

company. Total comprehensive income shows the total

amounts attributable to the equity holders of the parent

company and to non-controlling interests separately. The

Group also recognizes negative non-controlling interests,

unless the non-controlling interest does not have a binding

obligation to cover losses up to the amount of their

investment.

If the parent company’s ownership interest in the subsidiary

is reduced but control is retained then the transactions are

treated as equity transactions. When the Group ceases to

have control or significant influence, any retained interest in

the entity is remeasured at its fair value and the difference is

recognized as profit or loss.

ASSOCIATES

Associated companies are companies over which the Group

exercises significant influence (voting rights generally being

20–50 percent) but which it does not control. Holdings in

associated companies are consolidated using the equity

method. If the Group’s share of the associate’s losses

exceeds the carrying amount of the investment, the

exceeding losses will not be consolidated unless the Group

has a commitment to fulfill the obligations on behalf of the

associate. The Group’s share of the associated companies’

net profit for the financial year is stated as a separate item in

the Consolidated Income Statement, in operating profit, in

proportion to the Group’s holdings. The Group’s share of the

other comprehensive income of its associates is recognized

in the Group’s other comprehensive income.

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FOREIGN CURRENCY TRANSLATION

The Consolidated Financial Statements are presented in

euros, which is the Group’s presentation currency as well as

the parent company’s functional and presentation currency.

Items included in the financial statements of each of the

Group’s entities are measured by using the currency of the

primary economic environment in which the entity operates

(the functional currency).

If the functional currency of the subsidiary is a currency

other than the euro, its Income Statement is translated into

euros using the financial year’s average foreign currency

exchange rates and the balance sheets are translated using

the exchange rates quoted on the balance sheet date.

Translating the net profit for the period using different

exchange rates in the Income Statement and in the balance

sheet causes a translation difference which is recognized as

equity on the Balance Sheet. The change in this translation

difference is presented under Other Comprehensive Income.

Goodwill and fair value adjustments to the carrying amounts

of the assets and liabilities that arise from the acquisition of

a foreign entity are accounted for as part of the assets and

liabilities of the foreign entity and are translated into euros at

the rate quoted on the balance sheet date.

Translation differences in the loans granted to some foreign

subsidiaries are treated as an increase or decrease in other

comprehensive income. When the Group ceases to have

control over a subsidiary, the accumulated translation

difference is transferred into the Income Statement as part

of the gain or loss on the sale.

In their day-to-day accounting, the Group companies

translate foreign currency transactions into their functional

currency at the exchange rates quoted on the transaction

date. In the Financial Statements, foreign currency

denominated receivables and liabilities are measured at the

exchange rates quoted on the balance sheet date. Non-

monetary items are measured using the rates quoted on the

transaction date. Any foreign exchange gains and losses

related to business operations are treated as adjustments to

sales and purchases. Exchange rate differences associated

with financing transactions and with the hedging of the

Group’s overall foreign currency position are stated in foreign

exchange gains or losses, under finance income and

expenses.

THE ITEMS IN THE FINANCIAL STATEMENTS

THAT INCLUDE ACCOUNTING ESTIMATES

AND ACCOUNTING POLICIES THAT REQUIRE

JUDGMENT BY THE MANAGEMENT

When preparing Consolidated Financial Statements in

accordance with IFRS, the management is required to make

accounting estimates and assumptions concerning the

future. The resulting accounting estimates will seldom be

equal to actual results. In addition, management is required

to exercise judgment when applying accounting policies.

The estimates and assumptions are continuously evaluated

and are based on past experience and expectations of future

events that may have financial implications and are

considered to be reasonable under the circumstances.

The following table lists items in the financial statements

that include significant accounting estimates and includes

the notes related to them. Also included are the accounting

policies and the sensitivity analysis applied to the items. The

items that include accounting estimates are subject to a risk

of changes in the carrying amount of assets and liabilities

during the next financial period.


The items in the Financial Statements	Note in the Financial Statements
Goodwill	3.1. Goodwill
Fair value of shares in the PVO Group	3.5. Other shares
Deferred taxes and uncertain tax positions	2.6. Income taxes and 4.4. Deferred tax liabilities and assets
Defined benefit pension plans	4.5. Defined benefit pension plans and employee benefits
Provisions	4.6. Provisions

THE EFFECTS OF CLIMATE-RELATED

MATTERS IN FINANCIAL STATEMENTS

Sustainability is a key driver of Kemira's profitable growth

strategy. Sustainability at Kemira focuses on five topics:

safety, people, circularity, water and climate. Kemira's

ambition is to be carbon neutral by 2045.

Climate-related matters have an impact in several areas of

Kemira's Consolidated Financial Statements. As a chemicals

company operating in an energy-intensive industry, Kemira

has two Power Purchase Agreements in wind power, along

with ownership in Pohjolan Voima Oyj and Teollisuuden Voima

Oyj (Note 3.5 Other Shares), producing CO2-free electricity

with nuclear and hydro power plants in Finland. CO2-

emissions and energy efficiency matters are considered in

capital investments, thus also affecting non-current assets

(Note 3.3 Property, Plant and Equipment) as well as future

cash flow forecasts used in goodwill impairment testing

(Note 3.1 Goodwill). Kemira has a partnership with Danimer

Scientific Inc. to develop fully biobased barrier coatings for

paper and board products, generating intangible assets

(Note 3.2 Other Intangible Assets).

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In addition, Kemira has an undrawn revolving credit facility of

EUR 400 million, with sustainability targets (Note 5.5

Management of Financial Risk). Kemira's long-term incentive

programs for years 2023-2025 and 2024-2026 also include

climate-related targets in the KPIs to be measured.

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2. Financial performance

2.1 SEGMENT INFORMATION

Kemira's organization consists of two segments: Pulp & Paper and Industry & Water.

Pulp & Paper

Pulp & Paper has expertise in applying chemicals and in supporting pulp and paper producers

in innovating and constantly improving their operational efficiency. The segment develops and

sells products to meet the needs of its customers, thus ensuring a leading portfolio of

products and services for the paper wet-end, focusing on packaging and board as well as

tissue products.

Industry & Water

Industry & Water supports municipalities and water intensive industries in the efficient and

sustainable utilization of resources. In water treatment, the segment helps in the optimization

of every stage of the water cycle.

On January 1, 2025 Kemira changed to a new operating model. As part of the change, Kemira's

new operating model now includes three segments: Water Solutions, Packaging & Hygiene

Solutions and Fiber Essentials.

ALTERNATIVE PERFORMANCE MEASURES

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 should instead be read in conjunction with the most directly

comparable IFRS measures. Definitions of the key figures are disclosed in the section

Definitions of key figures.

INCOME STATEMENT ITEMS


2024, EUR million	Pulp & Paper	Industry & Water	Group
Revenue ¹⁾	1,646.7	1,301.4	2,948.1
EBITDA ²⁾	282.4	268.2	550.7
Depreciation, amortization and impairments	-120.0	-67.4	-187.4
Share of the results of associates	0.3	0.0	0.3
Operating profit (EBIT) ²⁾	162.4	200.8	363.2
Finance costs, net			-26.9
Profit before tax			336.3
Income taxes			-73.6
Net profit for the period			262.7

1) Revenue consists mainly of sales of products to external customers and there are no internal sales between the

segments.

2) Includes items affecting comparability.

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ITEMS AFFECTING COMPARABILITY IN EBITDA AND EBIT


2024, EUR million	Pulp & Paper	Industry & Water	Group
Operative EBITDA, O&G divestment adjusted ¹⁾	303.1	279.1	582.1
O&G divestment adjustment	0.0	3.3	3.3
Operative EBITDA	303.1	282.3	585.4
Restructuring and streamlining programs			-12.5
Transaction and integration expenses in acquisitions			-0.2
Divestment of businesses and other disposals			-21.8
Other items			-0.2
Total items affecting comparability	-20.6	-14.1	-34.8
EBITDA	282.4	268.2	550.7

Operative EBIT, O&G divestment adjusted ¹⁾	183.8	211.7	395.5
O&G divestment adjustment	0.0	3.2	3.2
Operative EBIT	183.8	214.9	398.7
Items affecting comparability in EBITDA	-20.6	-14.1	-34.8
Items affecting comparability in depreciation, amortization and impairments	-0.7	0.0	-0.7
Operating profit (EBIT)	162.4	200.8	363.2

1) Kemira divested its Oil & Gas (O&G)-related portfolio on February 2, 2024. The figures adjusted for the Oil & Gas

divestment reflect the underlying business performance of Kemira's Pulp & Paper and Industry & Water segments after

the divestment.

Quarterly information on items affecting comparability is disclosed in the section on Reconciliation of IFRS figures.

BALANCE SHEET ITEMS


2024, EUR million	Pulp & Paper	Industry & Water	Group
Segment assets	1,523.0	834.2	2,357.2
Reconciliation to total assets as reported in the Group balance sheet:
Other shares			270.5
Deferred income tax assets			31.5
Other investments			6.4
Defined benefit pension receivables			115.7
Other assets			80.4
Cash and cash equivalents			519.2
Assets classified as held-for-sale			9.9
Total assets			3,381.0

Segment liabilities	276.9	196.4	473.3
Reconciliation to total liabilities as reported in the Group balance sheet:
Interest-bearing non-current financial liabilities			547.1
Interest-bearing current financial liabilities			263.6
Other liabilities			279.8
Liabilities classified as held-for-sale			12.0
Total liabilities			1,577.5

OTHER ITEMS


2024, EUR million	Pulp & Paper	Industry & Water	Group
Capital employed by segments on Dec 31	1,246.1	637.8	1,883.9
Capital employed by segments ²⁾	1,286.7	633.5	1,920.2
Operative ROCE, %	14.3	33.9	20.8
Capital expenditure	99.2	71.3	170.5
Cash flow after investing activities ³⁾	202.4	328.9	411.8

2) 12-month rolling average.

3) Cash flows related to financing items and taxes have not been addressed to segments.

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INCOME STATEMENT ITEMS


2023, EUR million	Pulp & Paper	Industry & Water	Group
Revenue ¹⁾	1,748.2	1,635.5	3,383.7
EBITDA ²⁾	308.0	232.0	540.0
Depreciation, amortization and impairments ²⁾	-114.6	-89.0	-203.6
Share of the results of associates	0.1	0.0	0.1
Operating profit (EBIT) ²⁾	193.4	143.0	336.4
Finance costs, net			-44.4
Profit before tax			292.0
Income taxes			-80.7
Net profit for the period			211.3

1) Revenue consists mainly of sales of products to external customers and there are no internal sales between the

segments.

2) Includes items affecting comparability.

ITEMS AFFECTING COMPARABILITY IN EBITDA AND EBIT


2023, EUR million	Pulp & Paper	Industry & Water	Group
Operative EBITDA, O&G divestment adjusted ³⁾	330.9	265.0	595.9
O&G divestment adjustment	0.0	70.8	70.8
Operative EBITDA	330.9	335.8	666.7
Restructuring and streamlining programs			-0.9
Transaction and integration expenses in acquisitions			-0.2
Divestment of businesses and other disposals			-125.9
Other items			0.4
Total items affecting comparability	-22.9	-103.7	-126.7
EBITDA	308.0	232.0	540.0

Operative EBIT, O&G divestment adjusted ³⁾	216.3	199.2	415.5
O&G divestment adjustment	0.0	47.6	47.6
Operative EBIT	216.3	246.7	463.0
Items affecting comparability in EBITDA	-22.9	-103.7	-126.7
Items affecting comparability in depreciation, amortization and impairments	0.0	0.0	0.0
Operating profit (EBIT)	193.4	143.0	336.4

3) The figures for the comparison year 2023 have been adjusted because Kemira divested its Oil & Gas (O&G)-related

portfolio on February 2, 2024. The figures adjusted for the Oil & Gas divestment reflect the underlying business

performance of Kemira's Pulp & Paper and Industry & Water segments after the divestment. Kemira's management

follows the Oil & Gas divestment adjusted figures.

Quarterly information on items affecting comparability is disclosed in the section Reconciliation of IFRS figures.

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BALANCE SHEET ITEMS


2023, EUR million	Pulp & Paper	Industry & Water	Group
Segment assets	1,539.6	791.2	2,330.8
Reconciliation to total assets as reported in the Group balance sheet:
Other shares			305.4
Deferred income tax assets			31.8
Other investments			7.9
Defined benefit pension receivables			106.3
Other assets			304.5
Cash and cash equivalents			402.5
Assets classified as held-for-sale			255.6
Total assets			3,489.3

Segment liabilities	276.6	175.8	452.4
Reconciliation to total liabilities as reported in the Group balance sheet:
Interest-bearing non-current financial liabilities			615.7
Interest-bearing current financial liabilities			322.1
Other liabilities			308.1
Liabilities classified as held-for-sale			104.8
Total liabilities			1,805.1

OTHER ITEMS


2023, EUR million	Pulp & Paper	Industry & Water	Group
Capital employed by segments on Dec 31	1,263.0	615.4	1,878.4
Capital employed by segments ¹⁾	1,282.0	873.5	2,155.5
Operative ROCE, %	16.9	28.2	21.5
Capital expenditure	126.2	80.5	206.8
Cash flow after investing activities ²⁾	216.3	242.5	349.3

1) 12-month rolling average.

2) Cash flows related to financing items and taxes have not been addressed to segments.

INFORMATION ABOUT GEOGRAPHICAL AREAS:

REVENUE BY GEOGRAPHICAL AREA BASED ON CUSTOMER LOCATION


EUR million	2024	2023
Finland, domicile of the parent company	368.6	448.1
Other Europe, Middle East and Africa	1,174.6	1,171.9
Americas	1,113.0	1,458.8
Asia Pacific	291.8	304.9
Total	2,948.1	3,383.7

NON-CURRENT ASSETS BY GEOGRAPHICAL AREA


EUR million	2024	2023
Finland, domicile of the parent company	772.1	821.9
Other Europe, Middle East and Africa	460.4	441.7
Americas	526.2	483.2
Asia Pacific	154.4	166.0
Total	1,913.2	1,912.8

Information about major customers

The Group has several significant customers. No more than 10% of the Group's revenue was

accumulated from any single external customer in 2024 or in 2023 .

The Group's accounting policies

Segment reporting

Segment information is presented in a manner consistent with the Group’s internal

organizational and reporting structure. Kemira's management evaluates the performance of

the segments based on operative EBITDA and operative EBIT, among other factors. Assets

and liabilities dedicated to a particular segment’s operations are included in that segment’s

total assets and liabilities. Segment assets include property, plant and equipment, intangible

assets, right-of-use assets, investments in associates, inventories and certain current non-

interest-bearing receivables. Segment liabilities include certain current non-interest-bearing

liabilities. Geographically, Kemira’s operations are divided into three business regions:

Europe, the Middle East and Africa (EMEA), the Americas and the Asia Pacific (APAC).

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Revenue recognition

IFRS 15 standard establishes a single comprehensive model for entities to use in accounting

for revenue arising from contracts with customers. The core principle is that an entity should

recognize revenue to depict the transfer of promised goods or services to customers to an

amount that reflects the consideration to which the Group expects to be entitled in

exchange for those goods or services. The Group recognizes revenue when (or as) a

performance obligation is satisfied, i.e. when ‘control’ of the good or service underlying the

particular performance obligation is transferred to the customer.

The Group's revenue consists mainly of contract types that include sales of chemical

products as well as services and equipment which are related to sales of these chemical

products. In 2024 and 2023, services have not formed a significant part of the Group's

revenue.

Revenue recognition occurs at the point when the control of the products is transferred to

the customer. Generally, in the Group's sales agreements, control is transferred to the

customer based on delivery terms and the revenue is recognized at a point in time.

The Group provides delivery and handling services in conjunction with the sale of chemical

products to customers. The delivery and handling services are recognized at the same time

as revenue from products and they are not treated as a separate performance obligation.

Kemira recognizes the sale of products and the delivery and handling services for the same

reporting period.

Discounts provided to customers are not a significant component of the sales price in

Kemira’s sales contracts.

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2.2 OTHER OPERATING INCOME AND EXPENSES

OTHER OPERATING INCOME


EUR million	2024	2023
Gains on the sale of non-current assets	0.1	0.1
Rental income	0.6	0.7
Services	1.0	3.1
Other income from operations ¹⁾	0.4	4.8
Total	2.1	8.6

1) Other income from operations consists mainly of insurance compensations in 2023.

OPERATING EXPENSES


EUR million	2024	2023
Materials and supplies ²⁾	1,422.9	1,754.2
Employee benefit expenses	431.9	440.8
External services and other expenses ³⁾ ⁴⁾	340.9	440.5
Freights and delivery expenses	204.1	216.9
Total	2,399.8	2,852.3

2) In 2024, materials and supplies included EUR 4.7 million (7.1) Government grants for energy intensive industry in several

European countries.

3) Includes equipment costs, travel expenses, leases, office related expenses, insurance, consulting, and other

operational expenses. Other expenses include EUR 11 million (101) loss on the divestment of the Oil & Gas business,

including transaction fees. Kemira completed the divestment in February 2024.

4) In 2024, other operating expenses included research and development expenses of EUR 33.7 million (32.8) including

government grants received. Government grants received for R&D were EUR 0.4 million (0.6). The extent of the grants

received reduces the research and development expenses.

EMPLOYEE BENEFIT EXPENSES


EUR million	Note	2024	2023
Wages, salaries and emoluments
Wages and salaries ⁵⁾		322.5	330.4
Share-based payments	2.3.	12.5	13.1
Total		335.0	343.5

Indirect employee benefit expenses
Expenses for defined benefit pension plans and employee benefits	4.5.	1.7	2.0
Pension expenses for defined contribution plans		34.3	34.9
Other employee benefit costs		60.9	60.4
Total		96.9	97.3

Total employee benefit expenses		431.9	440.8

5) Includes emoluments of Kemira Oyj's CEO and the Board of Directors.

The salaries and fees of Kemira Oyj's CEO and members of the Board of Directors are

disclosed in Note 6.1.

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NUMBER OF PERSONNEL


	2024	2023
Average number of personnel by geographical area¹⁾
Europe, Middle East and Africa	2,542	2,512
Americas	1,271	1,506
Asia Pacific	933	928
Total	4,746	4,946

Personnel in Finland, average	818	806
Personnel outside Finland, average	3,928	4,140
Total	4,746	4,946

Number of personnel on Dec 31	4,698	4,915

AUDITOR'S FEES AND SERVICES


EUR million	2024	2023
Audit fees	1.7	1.8
Tax services	0.1	0.1
Other services	0.2	0.1
Total	2.0	2.0

Ernst & Young Oy is acting as the principal auditor for Kemira Group.

The Group's accounting policies

Government grants

Government grants for investments are recognized as a deduction from the carrying amount

of PP&E. The grants are recognized in the income statement as smaller depreciation over

the asset’s useful life. Government grants for research activities are recognized as a

deduction from expenses. Certain other grants are recognized either as a deduction from

expenses or as other income from operations.

Research and developments costs

Research and development costs are recognized as an expense as incurred. Development

costs are capitalized as intangible assets when it can be shown that a development project

will generate a probable future economic benefit, and the costs attributable to the

development project can reliably be measured. Capitalized development costs include

material, labor, and testing costs, as well as any capitalized borrowing costs that are directly

attributable to bringing the asset ready for its intended use. Other development costs that

do not meet these criteria are recognized as an expense as incurred. Development costs

previously recognized as an expense are not recognized as an asset in the subsequent

periods.

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2.3 SHARE-BASED PAYMENTS

Share incentive plans 2019–2023

In December 2018, Kemira's Board of Directors of Kemira Oyj decided to establish a long-term

incentive plan for 2019–2023. The long-term share incentive plan was directed towards a

group of key employees. This was composed of two one-year performance periods for the

years 2019 and 2020 and three three-year performance periods for the years 2019–2021,

2020–2022 and 2021–2023.The Board decided on the plan’s performance criteria and the

targets for each criterion at the beginning of each performance period.

The rewards for the performance periods have been paid partly in Kemira Oyj's shares and

partly in cash. The cash proportion is intended to cover taxes and tax-related costs arising to

the participant from the reward. As a rule, no reward has been paid if a participant's

employment or service has ended before the reward payment. The shares paid as a reward

may not be transferred during the restriction period, which ends two years after the end of

the performance period. If a participant's employment or service has ended during the

restriction period, the participant has, as a rule, gratuitously returned the shares given as a

reward, without consideration. The restriction period only applies to the one-year

performance period.

Share incentive plans 2022–2026

In December 2021, the Board of Directors of Kemira Oyj decided to establish a long-term share

incentive plan directed to a group of key employees at Kemira. The long-term share incentive

plan includes three three-year performance periods: years 2022–2024, 2023–2025 and 2024–

2026. The Board shall decide on the plan’s performance criteria and on the required

performance levels for each criterion at the beginning of each performance period. The Board

shall also decide on the plan’s participants and on share allocations at the beginning of each

performance period.

The potential reward is paid partly in Kemira Oyj's shares and partly in cash. The cash portion

covers taxes and tax-related costs arising to the participant from the reward. As a rule, no

reward will be paid if a participant's employment or service ends before the reward payment.

Share incentive plans 2025–2029

In December 2024, the Board of Directors of Kemira Oyj decided to establish a long-term

share incentive plan directed to a group of key employees at Kemira. The aim of the plan is to

combine the objectives of the shareholders and the persons participating in the plan to

increase the value of Kemira, to commit the participants to Kemira and to offer them a

competitive reward plan. The long-term share incentive plan includes three three-year

performance periods: years 2025–2027, 2026–2028 and 2027–2029.

The Board shall decide on the plan’s performance criteria and on the required performance

levels for each criterion at the beginning of each performance period. The Board shall also

decide on the plan’s participants and on share allocations at the beginning of each

performance period.

The potential reward is to be paid partly in Kemira shares and partly in cash. The cash portion

covers taxes and tax-related costs arising to the participant from the reward. As a rule, no

reward will be paid if a participant's employment or service ends before the reward payment.

Restricted Share Plan

In December 2023, the Board of Directors of Kemira Oyj also decided to establish a restricted

share plan. In particular, the Restricted Share Plan can be used as a commitment instrument

in specific executive recruitment situations. The terms allow for the plan to be used with

careful consideration in retention situations also.

The restricted share plan is continuous. The Board will approve, for each calendar year, an

annual quota of shares which can be granted within a respective year under the RSP. The

annual quota shall mean a net number of shares together with a cash proportion required for

cover all taxes. The total amount of shares offered during the year cannot exceed the

respective quota approved by the Board.

The plan offers participants the opportunity to receive a predetermined number of company

shares, after a specific restriction period which can vary from twelve (12) to forty (40) months,

with a decision by the Board of Directors. No earnings criteria are applied to the restricted

share plan and the delivery of the share reward is subject to the continuation of employment.

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The maximum aggregated amount of shares that may be granted under the Restricted Share

Plan in year 2024 is 70,000 Kemira shares. In addition, a cash proportion intended to cover the

taxes and tax-related costs arising from the reward is included. No persons were under the

plan during 2024. The maximum amount of shares that may be granted under the Restricted

Share Plan in year 2025 is 96,090 Kemira shares (referring to gross earnings before the

withholding of the applicable payroll tax).

Share incentive plans 2025–2027

Participation in the long-term share incentive plan’s performance period 2025–2027 is

directed to approximately 80 people. Should the performance targets set for the PSP 2025–

2027 be fully achieved, the maximum number of shares to be paid is approximately 960,898

shares (referring to gross earnings before the withholding of the applicable payroll tax).


Share incentive plan	2020-2022	2021-2023	2022-2024	2023-2025	2024-2026
Performance period (calendar year)	2020-2022	2021-2023	2022-2024	2023-2025	2024-2026
Issue year of shares	2023	2024	2025	2026	2027
Share price at the grant date	13.41	12.57	13.32	14.58	16.87
Number of transferred shares from the plans	254,375	468,437	—	—	—
Estimated number of shares on December 31, 2024	—	—	458,700	337,126	415,800
Number of participants on December 31, 2024	—	—	78	77	86
Performance criteria	¹⁾	¹⁾	¹⁾	²⁾	²⁾

1) Intrinsic value and organic growth-%. Intrinsic value is defined as follows: operative EBITDA * 8 - net debt.

2) ROCE-%, average organic revenue growth-%, Kemira CO2 emission reduction from Scope 1 & 2 and revenue growth of

renewable products.

The Board recommends that a member of the Group Leadership Team shall own such a

number of the Company’s shares that the total value of his or her shareholding corresponds

to the value of his or her annual gross salary, for as long as the membership continues. The

Board further recommends that a member of the Group Leadership Team shall hold at least

50 per cent of the number of shares given on the basis of this plan, even after a possible

reward payout, until his or her shareholding in total corresponds to the value of his or her

annual gross salary.

THE EFFECT OF SHARE-BASED PAYMENTS ON OPERATING PROFIT


EUR million	Note	2024	2023
Rewards provided in shares		5.5	5.9
Rewards provided in cash		7.0	7.1
Total	2.2.	12.5	13.1

The Group's accounting policies

Share-based payments

The Group has equity-settled share-based incentive plans under which the Group receives

services from persons as consideration for share-based rewards. The potential rewards for

these services are provided to the person partly in shares and partly in cash. The Group's

share incentive plan includes persons in several different countries where the Group is

obliged under local tax laws or regulations to pay the tax liability to the tax authorities on

behalf of a person in cash. The Group's share-based incentive plans have been entirely

classified as an equity-settled transaction.

The rewards granted on the basis of a share-based arrangement are recognized as

personnel expenses in the income statement and in equity. The expense is recognized on a

straight-line basis over the vesting period, which is the period over which the specified

vesting conditions are to be satisfied.

The fair value of the share awards has been determined at the grant date minus the

estimated expected dividends that will not be received during the vesting period. The fair

value of the rewards is based on the Group's estimate of the number of shares to which the

right is expected to be vested at the end of the vesting period. The estimate of the number

of shares is reviewed at each balance sheet date. The potential effect of revisions to

estimates is recognized as a personnel expense in the income statement, with the

corresponding fair value adjustment made to equity.

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2.4 DEPRECIATION, AMORTIZATION AND IMPAIRMENTS


EUR million	2024	2023
Amortization of intangible assets and depreciation of property, plant and equipment
Other intangible assets ¹⁾	17.8	19.0
Buildings and constructions	23.9	23.8
Machinery and equipment	105.0	116.3
Other tangible assets	6.8	6.4
Total	153.5	165.5

Depreciations of right-of-use assets
Land	1.9	1.6
Buildings and constructions	9.1	10.3
Machinery and equipment	21.8	25.6
Other tangible assets	0.5	0.6
Total	33.3	38.1

Impairments of intangible assets and property, plant and equipment ²⁾
Goodwill	0.0	0.0
Buildings and constructions	0.0	0.0
Machinery and equipment	0.0	0.0
Other tangible assets	0.7	0.0
Total	0.7	0.0

Total depreciation, amortization and impairments	187.4	203.6

1) Amortization of intangible assets related to business acquisitions amounted to EUR 5.8 million (6.9 ) during the financial

year 2024.

2) In 2024, impairments related to the closure of a manufacturing site in Vancouver, Canada.

Goodwill impairment tests are disclosed in Note 3.1. Goodwill.

The Group's accounting policies

Depreciation/amortization

Depreciation/amortization is calculated on a straight-line basis over the asset’s estimated

useful life. Land is not depreciated. The most commonly applied depreciation/amortization

periods included in the Group’s accounting policies are presented in the following table.


Depreciation of property, plant and equipment and amortization of intangible assets in years
Buildings and constructions	20-40
Machinery and equipment	3-15
Development costs	a maximum of 8 years
Customer relationships	5-7
Technologies	5-10
Non-compete agreements	3-5
Other intangible assets	5-10
Right-of-use assets	during a lease term

Depreciation/amortization of an asset begins when it is available for use and ceases at the

moment when the asset is classified under IFRS 5 as held for sale or it is included in the

disposal group.

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2.5 FINANCE INCOME AND EXPENSES


EUR million		2024	2023
Finance income
Dividend income		0.0	0.0
Interest income
	Interest income from loans and receivables	15.9	10.3
	Interest income from financial assets at fair value through profit or loss	2.3	2.3
Other finance income		0.0	0.1
Total		18.2	12.7

Finance expense
Interest expenses
	Interest expenses from other liabilities	-28.8	-32.9
	Interest expenses from financial liabilities at fair value through profit or loss	-1.8	-4.2
	Interest expenses from lease liabilities	-7.8	-7.8
Other finance expenses ¹⁾		-4.6	-4.5
Total		-43.0	-49.3

Exchange differences
Exchange differences from financial assets and liabilities at fair value through profit or loss		-2.0	16.6
Exchange differences, other		-0.1	-24.4
Total		-2.1	-7.7

Total finance income and expenses		-26.9	-44.4

Net finance expenses as a percentage of revenue, %		0.9	1.3
Net interest as a percentage of revenue, %		0.7	1.0


EUR million	2024	2023
Change in Consolidated Statement of Comprehensive Income from hedge accounting instruments
Cash flow hedge accounting: amount recognized in the Consolidated Statement of Comprehensive Income ²⁾	-14.1	-54.1
Total	-14.1	-54.1

Exchange differences
Realized	0.2	13.2
Unrealized	-2.3	-20.9
Total	-2.1	-7.7

1) Includes EUR 1.4 million (1.2) of arrangement fees relating to loans in 2024.

2) Consists mostly of changes in the fair value of derivatives under hedge accounting treatment.

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2.6 INCOME TAXES


EUR million	2024	2023
Current taxes	-70.5	-87.3
Taxes for prior years	-3.0	2.6
Change in deferred taxes	0.0	4.1
Total	-73.6	-80.7

RECONCILIATION BETWEEN TAX EXPENSE AND TAX CALCULATED AT

DOMESTIC TAX RATE


EUR million	2024	2023
Profit before tax	336.3	292.0

Tax at parent company's tax rate 20%	-67.3	-58.4
Foreign subsidiaries' different tax rate	-3.8	-8.0
Non-deductible expenses and tax-exempt profits	-0.4	-30.8
Share of profit or loss of associates	0.1	-0.1
Tax losses during the period without deferred tax	-0.1	-1.3
Tax for prior years	-3.0	2.6
Effect of change in tax rates	0.0	-0.1
Utilization of prior years' tax losses with no deferred tax	0.6	1.0
Changes in deferred taxes	0.4	14.4
Income taxes in the Income Statement	-73.6	-80.7

In 2024 , the effective tax rate of the Group was 21.9% ( 27.6% ). Effective tax rate for the year

2023 was impacted by the divestment of the Oil & Gas business.

TAX LOSSES AND RELATED DEFERRED TAXES


	Tax losses carried forward		Recognized deferred taxes		Unrecognized deferred taxes
EUR million	2024	2023	2024	2023	2024	2023
Expiry within 5 years	26.2	42.6	4.1	7.9	2.0	2.2
Expiry after 5 years	24.1	2.5	3.5	0.6	2.2	0.0
No expiry	33.9	52.5	5.8	9.2	5.0	7.5
Total	84.2	97.6	13.4	17.7	9.2	9.7

At the end of 2024, the subsidiaries had EUR 32.3 million (31.1 ) tax losses, of which no deferred

tax benefits have been recognized. The subsidiaries' tax losses are incurred in different

currencies and born mainly in China and Brazil.

Kemira is within the scope of the OECD Pillar 2 model rules. Pillar 2 legislation has been

enacted in many Kemira countries, including Finland, where the rules came into effect from 1

January 2024. Kemira applies the mandatory IAS 12 exception to recognising and disclosing

information about deferred tax assets and liabilities related to Pillar 2 income taxes. Kemira

has establish a process and tools to analyse the outcome of Pillar 2 related safe harbour rules

and GloBE calculations, and manages the analysing and compliance requirements centrally.

Based on the Kemira’s assessment majority of the group companies are expected to pass the

safe harbour rules during the transitional period, and only 2-3 group companies are expected

to require detailed GloBE calculations, which, however, are not expected to result any

increase in taxes. Therefore, it is not expected that Pillar 2 has an impact on the amount of

the Group’s income taxes.

The Group's accounting policies

Income taxes

The Group’s tax expense for the period comprises current tax, adjustments from prior tax

periods and deferred tax. Tax is recognized in the income statement, except where it relates

to items recognized in other comprehensive income or directly in equity. In this case, the tax

is also recognized in other comprehensive income or directly in equity.

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The current income tax charge is calculated based on tax laws enacted or substantively

enacted on the balance sheet date in the countries where the parent company and its

subsidiaries and associated companies operate and generate taxable income.

The items in the financial statements that include significant accounting

estimates and accounting policies that require judgment

Deferred taxes and uncertain tax positions

The management regularly evaluates the positions taken in the tax returns to identify

situations where the applicable tax regulation may be subject to interpretation. The

management evaluates also other potential uncertainties related to the tax positions

identified in the tax audits or tax disputes. Taxes of uncertain tax positions are recognized

based on estimated outcome and probability.

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2.7 EARNINGS PER SHARE


	2024	2023
Earnings per share, basic
Net profit attributable to equity owners of the parent company, EUR million	249.4	199.1
Weighted average number of shares ¹⁾	153,920,990	153,573,071
Basic earnings per share, EUR	1.62	1.30

Earnings per share, diluted
Net profit attributable to equity owners of the parent company, EUR million	249.4	199.1
Weighted average number of shares ¹⁾	153,920,990	153,573,071
Adjustments:
Average number of treasury shares it is possible to be issued on the basis of the share-based payments	1,312,591	1,478,009
Weighted average number of shares for diluted earnings per share	155,233,581	155,051,080
Diluted earnings per share, EUR	1.61	1.28

1) Weighted average number of shares outstanding, excluding the number of treasury shares held by Kemira Oyj.

The Group's accounting policies

Earnings per share

The basic earnings per share is calculated by dividing the profit attributable to the equity

owners of the parent company by the weighted average number of shares issued during the

period, excluding treasury shares held by parent company Kemira Oyj. The diluted earnings

per share is calculated by adjusting the weighted average number of ordinary shares with

the dilutive effect of all the potential dilutive shares, such as shares from share-based

payments.

2.8 OTHER COMPREHENSIVE INCOME


EUR million	2024	2023
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	7.5	-17.5
Cash flow hedges	-15.0	-67.7
Items that will not be reclassified subsequently to profit or loss
Other shares	-34.9	-76.7
Remeasurements of defined benefit plans	16.6	23.3
Other comprehensive income for the period before taxes	-25.8	-138.7
Tax effects relating to components of other comprehensive income	2.2	25.1
Other comprehensive income for the period, net of tax	-23.6	-113.4

THE TAX RELATING TO COMPONENTS OF OTHER COMPREHENSIVE

INCOME


	2024			2023
EUR million	Before tax	Tax charge (-) /credit (+)	After tax	Before tax	Tax charge (-) /credit (+)	After tax
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations	7.5	0.2	7.7	-17.5	0.6	-16.9
Cash flow hedges	-15.0	0.9	-14.1	-67.7	13.6	-54.1
Items that will not be reclassified subsequently to profit or loss
Other shares	-34.9	7.0	-27.9	-76.7	15.3	-61.3
Remeasurements of defined benefit plans	16.6	-5.9	10.7	23.3	-4.4	18.9
Total other comprehensive income	-25.8	2.2	-23.6	-138.7	25.1	-113.4

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3. Capital expenditures and acquisitions

3.1 GOODWILL


EUR Million	Note	2024	2023
Net book value on Jan 1		480.9	510.5
Acquisition of subsidiaries and business acquisitions		2.5	2.3
Impairments		0.0	0.0
Transferred to assets classified as held-for-sale ¹⁾	3.7.	0.0	-26.5
Exchange differences		7.3	-5.3
Net book value on Dec 31		490.6	480.9

1) In 2023, goodwill was reclassified as held-for-sale assets which was related to the sale of the Oil & Gas business. See

Note 3.7. for further details regarding the held-for-sale assets.

Impairment testing of goodwill

Goodwill is allocated to the two individual cash-generating units that are the Group's

reportable segments. The reportable segment represents the lowest level within the Group at

which goodwill is monitored for internal management purposes. The Group’s two reportable

segments are Pulp & Paper and Industry & Water. A summary of the tested net book values

and goodwill relating to the Group’s reportable segments is presented in the following table.


	2024		2023
EUR Million	Net book value	of which goodwill	Net book value	of which goodwill
Pulp & Paper	1,246	353	1,263	349
Industry & Water	638	137	615	132
Total	1,884	491	1,878	481

The Group carries out its impairment testing of goodwill annually, or whenever there is an

indication that the recoverable amount may be less than its carrying amount. The recoverable

amounts of the cash-generating units have been determined based on value in use

calculations which require the use of estimates and assumptions. The key assumptions in the

value in use calculations are the EBITDA margin and the discount rate.

The long-term EBITDA margin assumption used for the impairment testing of goodwill is

based on past experience regarding EBITDA margins and also reflects the management's

perception of developments in sales prices and sales volumes during the forecast period. The

impact of climate-related risks to the Group's long-term performance has been considered in

the cash flow forecasts. The cash flow forecasts used in the impairment testing are based on

cash flow forecasts approved by the management, covering a five-year horizon. The expected

growth used to extrapolate cash flows in the subsequent five-year forecast period was

assumed to be 1% (2023: 1%) in both cash-generating units, Pulp & Paper and Industry &

Water.

The discount rates applied were based on the Group's adjusted Weighted Average Cost of

Capital (WACC) before taxes. The risk-adjusted WACC rate was defined for both cash-

generating units. The pre-tax discount rates used in performing the impairment tests of the

Group's reportable segments are presented in the following table.


%	2024	2023
Pulp & Paper	9.0	9.3
Industry & Water	9.0	9.3

In addition, an impairment test based on market value has been carried out as part of

impairment testing. The value in use calculation based on cash flow forecasts has been

validated by comparing it against the quoted market value of Kemira Oyj.

During the financial years 2024 and 2023, the impairment tests have not indicated any

impairment and no impairment loss has been recognized in the income statement.

Sensitivity analysis

In 2024, as part of the impairment testing, the Group carried out a sensitivity analysis that

assessed key changes in assumptions as follows: a decrease of 2 percentage points in EBITDA

margin, a decrease of 10% in estimated cash flow during the forecast period, an increase of 1

and 2 percentage points in the discount rates or a decrease of 10% in cash flows and an

increase of 2 percentage points in the discount rate.

Based on the sensitivity analyses carried out, the management has estimated that changes in

the key assumptions of EBITDA margins, discount rates and cash flows would not result in the

cash-generating units carrying amounts exceeding the recoverable amounts and,

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consequently, there would be no impairment losses recorded in either of the reportable

segments.

The Group's accounting policies

Goodwill

Goodwill arises from business combinations. Goodwill represents the excess of the

consideration transferred, the amount of any non-controlling interest in the acquiree and

the acquisition-date fair value of any previous equity interest in the acquiree over the fair

value of the identifiable net assets acquired. Goodwill is measured at cost less the

accumulated impairment losses.

Impairment testing

On each balance sheet date, the Group assesses whether there is any indication of an

asset’s impairment. If any indication of impairment exists, the recoverable amount of the

asset or of the cash-generating unit is calculated on the basis of the value in use or the net

selling price.

For the purpose of impairment testing goodwill, a cash-generating unit has been defined as

an operating segment. Two or more operating segments are not combined into one

reportable segment. The recoverable amount of a reportable segment is defined as its value

in use, which consists of the discounted future cash flows to the unit. Estimates of future

cash flows are based on the continuing use of an asset and on forecasts by the

management. Cash flow estimates do not include the effects of improved asset

performance, investments or future reorganizations.

Goodwill impairment is tested by comparing the recoverable amount with the carrying

amount for the reportable segments Pulp & Paper and Industry & Water. The carrying

amount includes goodwill, intangible assets and PP&E, right-of-use assets and working

capital. Other than goodwill, the Group does not have intangible assets with indefinite useful

lives. All goodwill has been allocated to the reportable segments.

An impairment loss is recognized whenever the carrying amount of an asset or a cash-

generating unit exceeds its recoverable amount. An impairment loss is recognized in the

income statement. If there has been a positive change in the estimates used to determine

an asset's recoverable amount since the last impairment loss was recognized, an

impairment loss recognized for previous years is reversed only to the extent that the asset’s

carrying amount does not exceed the carrying amount that would have been determined if

no impairment loss had been recognized for the previous years. An impairment loss for

goodwill is never reversed.

The items in the financial statements that include significant accounting

estimates and accounting policies that require judgment

Impairment test of goodwill

The impairment tests of goodwill and other assets include determining future cash flows

which, with regard to the most significant assumptions, are based on EBITDA margin and

discount rates. Significant adverse developments in cash flows and interest rates may

necessitate the recognition of an impairment loss.

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3.2 OTHER INTANGIBLE ASSETS


	Other intangible assets
2024, EUR million	Other intangible assets	Prepayments	Total
Acquisition cost on Jan 1	334.5	3.4	337.9
Additions	9.8	1.4	11.2
Purchases of subsidiaries and business acquisitions	0.5	0.0	0.5
Decreases	-0.3	0.0	-0.3
Reclassifications	0.0	0.0	0.0
Exchange rate differences and other changes	2.2	0.0	2.1
Acquisition cost on Dec 31	346.7	4.9	351.5

Accumulated amortization on Jan 1	-287.4		-287.4
Accumulated amortization relating to decreases and transfers	0.0		0.0
Amortization during the financial year	-17.8		-17.8
Impairments	0.0		0.0
Exchange rate differences	-2.1		-2.1
Accumulated amortization on Dec 31	-307.2		-307.2

Net book value on Dec 31	39.4	4.9	44.3
Emission rights			0.3
Net book value including emission rights on Dec 31			44.5

The Group holds assigned emissions allowances under the EU Emissions Trading System at its

Helsingborg site in Sweden and under the UK Emissions Trading System at its Bradford site in

the UK. At the Group level, the allowances showed a surplus of 130,573 tons of carbon dioxide

in 2024 (a surplus of 112,573 tons).


	Other intangible assets
2023, EUR million	Other intangible assets	Prepayments	Total
Acquisition cost on Jan 1	333.7	11.1	344.8
Additions	17.8	-7.5	10.3
Purchases of subsidiaries and business acquisitions	1.2	0.0	1.2
Decreases	-0.9	0.0	-0.9
Transferred to assets classified as held-for-sale ¹⁾	-13.3	0.0	-13.3
Reclassifications	0.0	-0.1	-0.1
Exchange rate differences and other changes	-4.0	0.0	-4.0
Acquisition cost on Dec 31	334.5	3.4	337.9

Accumulated amortization on Jan 1	-283.8		-283.8
Accumulated amortization relating to decreases and transfers	0.9		0.9
Amortization during the financial year	-19.0		-19.0
Impairments	0.0		0.0
Transferred to assets classified as held-for-sale ¹⁾	11.6	0.0	11.6
Exchange rate differences	2.9		2.9
Accumulated amortization on Dec 31	-287.4		-287.4

Net book value on Dec 31	47.1	3.4	50.5
Emission rights			0.6
Net book value including emission rights on Dec 31			51.1

1) In 2023, other intangible assets amounting to EUR 1.6 million were reclassified as held-for-sale assets. These assets

were used by the Oil & Gas business. See Note 3.7. for further details regarding the held-for-sale assets.

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The Group's accounting policies

Other intangible assets

Other intangible assets include, for instance, software and software licenses and patents,

technologies, non-compete agreements and customer relationships acquired in business

combinations. Contrarily, acquisitions of cloud-based softwares as a service generally do

not, by their nature, meet the characteristics of an intangible asset and they are therefore

recognized as an expense. Intangible assets are measured at cost, less accumulated

amortization and any impairment losses. The Group has no intangible assets that have an

indefinite useful life other than goodwill.

Emission rights

Emission rights purchased on the market are accounted for as intangible assets, measured

at cost. Emission rights received free of charge are measured at their nominal value (zero).

Emission rights are not amortized. A provision for the fulfillment of the obligation to return

emission rights is recognized if the free-of-charge emissions are not sufficient to cover

actual emissions. The Group’s consolidated balance sheet shows no items related to

emission rights where the volume of actual emissions is lower than that of the free-of-

charge emissions allowances and the Group has not bought allowances on the market.

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3.3 PROPERTY, PLANT AND EQUIPMENT


2024, EUR million	Land	Buildings and constructions	Machinery and equipment	Other property, plant and equipment	Prepayments and assets under construction ¹⁾	Total
Acquisition cost on Jan 1	45.8	517.5	1,663.1	92.6	131.1	2,450.1
Additions	0.1	47.6	121.3	9.5	-22.4	156.0
Acquisitions of subsidiaries and business acquisitions	—	—	0.2	—	—	0.2
Decreases	-9.9	—	—	-2.4	—	-12.4
Disposed of subsidiaries	—	—	—	—	—	—
Transferred to assets classified as held-for-sale ²⁾	—	-0.1	-2.2	—	1.3	-1.0
Reclassifications	—	-0.1	0.1	0.1	—	—
Exchange rate differences and other changes	-0.2	7.0	21.5	1.5	-0.4	29.3
Acquisition cost on Dec 31	35.7	571.8	1,803.9	101.2	109.4	2,622.1

Accumulated depreciation on Jan 1	-9.9	-269.0	-1,175.8	-55.8		-1,510.5
Accumulated depreciation related to decreases and transfers	9.9	—	—	2.4		12.3
Depreciation during the financial year	—	-23.9	-105.0	-6.8		-135.7
Impairments	—	—	—	-0.7		-0.7
Transferred to assets classified as held-for-sale ²⁾	—	—	—	—		—
Exchange rate differences	—	-3.3	-18.5	-1.3		-23.1
Accumulated depreciation on Dec 31	—	-296.2	-1,299.3	-62.1		-1,657.6

Net book value on Dec 31	35.7	275.6	504.7	39.1	109.4	964.5

1) Prepayment and non-current assets under construction are mainly composed of plant investments.

2) In 2024, an amount of EUR 1 million of property, plant and equipment is reclassified as held-for-sale assets related to the Teesport manufacturing facility in the United Kingdom. See Note 3.7. for further details regarding the held-for-sale assets.

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2023, EUR million	Land	Buildings and constructions	Machinery and equipment	Other property, plant and equipment	Prepayments and assets under construction ¹⁾	Total
Acquisition cost on Jan 1	47.5	552.0	1,819.5	97.5	153.2	2,669.7
Additions	0.2	55.3	129.9	7.5	1.1	194.0
Decreases	0.0	-2.2	-41.7	-2.1	0.0	-46.0
Disposed of subsidiaries	0.0	0.0	0.0	0.0	0.0	0.0
Transferred to assets classified as held-for-sale ²⁾	-1.7	-80.0	-223.3	-8.0	-17.0	-330.0
Reclassifications	0.0	0.0	4.6	0.0	-4.4	0.1
Exchange rate differences and other changes	-0.3	-7.6	-25.9	-2.3	-1.8	-37.8
Acquisition cost on Dec 31	45.8	517.5	1,663.1	92.6	131.1	2,450.1

Accumulated depreciation on Jan 1	-9.9	-270.2	-1,249.6	-59.9		-1,589.6
Accumulated depreciation related to decreases and transfers	0.0	2.2	41.6	2.1		45.9
Depreciation during the financial year	0.0	-23.8	-116.3	-6.4		-146.5
Impairments	0.0	0.0	0.0	0.0		0.0
Transferred to assets classified as held-for-sale ²⁾	0.0	20.0	130.7	6.7	0.0	157.5
Exchange rate differences	0.0	2.7	17.8	1.7		22.3
Accumulated depreciation on Dec 31	-9.9	-269.0	-1,175.8	-55.8		-1,510.5

Net book value on Dec 31	35.9	248.5	487.3	36.8	131.1	939.6

1) Prepayment and non-current assets under construction are mainly composed of plant investments.

2) In 2023, property, plant and equipment amounting to EUR 172.5 million was reclassified as held-for-sale assets. These assets were used by the Oil & Gas business. See Note 3.7. for further details regarding the held-for-sale assets.

The Group's accounting policies

Property, plant and equipment

Property, plant and equipment is measured at cost, less accumulated depreciation and any

impairment losses. The residual values and useful lives of the assets are reviewed at least at

the end of each financial year. Gains and losses on the sale of non-current assets are

included in other operating income and expenses. Borrowing costs directly attributable to

the acquisition or construction of a qualifying asset are capitalized as part of the cost of

the asset in question, when it is probable that they will generate future economic benefits

and the costs can be reliably measured. The costs of major inspections or of the overhaul of

an asset performed at regular intervals are identified as separate components and are

capitalized and depreciated over their useful lives.

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3.4 LEASES

CHANGES IN RIGHT-OF-USE ASSETS


2024, EUR million	Land	Buildings and constructions	Machinery and equipment	Other property, plant and equipment	Total
Net book value Jan 1	25.8	29.4	66.5	1.3	123.0
Additions	4.3	9.3	24.3	0.2	38.2
Purchases of subsidiaries and business acquisitions	0.5	0.0	0.1	0.0	0.6
Depreciation and impairments	-1.9	-9.1	-21.8	-0.5	-33.3
Transferred to assets classified as held-for-sale ¹⁾	-1.5	0.0	0.0	0.0	-1.5
Reclassifications	0.0	0.0	0.0	0.0	0.0
Exchange rate differences and other changes	0.6	1.5	2.6	0.0	4.7
Net book value Dec 31	27.8	31.1	71.8	1.0	131.8


2023, EUR million	Land	Buildings and constructions	Machinery and equipment	Other property, plant and equipment	Total
Net book value Jan 1	31.5	37.8	74.8	1.9	146.0
Additions	0.4	5.2	31.3	0.2	37.1
Depreciation and impairments	-1.6	-10.3	-25.6	-0.6	-38.1
Transferred to assets classified as held-for-sale ²⁾	-3.8	-2.8	-11.1	-0.1	-17.8
Reclassifications	0.0	0.0	0.0	0.0	0.0
Exchange rate differences and other changes	-0.7	-0.6	-2.9	0.0	-4.2
Net book value Dec 31	25.8	29.4	66.5	1.3	123.0

1) In 2024, right-of-use assets amounting to EUR 1,5 million are reclassified as held-for-sale assets related to the Teesport manufacturing facility in the United Kingdom. See Note 3.7. for further details regarding the held-for-sale assets.

2) In 2023, right-of-use assets amounting to EUR 17.8 million were reclassified as held-for-sale assets. These assets were used by the Oil & Gas business. See Note 3.7. for further details regarding the held-for-sale assets.

Maturity of lease liabilities has been presented in Note 5.3. Interest-bearing liabilities.

Changes in lease liabilities and payments related to lease liabilities have been presented in

Note 5.1. Capital Structure.

In 2024, the amount of lease expenses recognized in the income statement for leases of

short-term or low-value assets is EUR 4 million (3).

The Group's accounting policies

Leases

At the time of entering into an agreement, the Group assesses whether the agreement is a

lease or whether it contains a lease. An agreement is a lease in accordance with IFRS 16 if

the agreement gives the Group, as the lessee, the right to control the asset and to control its

use for a specified period, against consideration. The Group's leases are mainly for land,

buildings and transport equipment.

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The lease is recognized as a right-of-use asset and as a corresponding liability when the

leased asset is available to the Group. The rent paid is divided into debt and interest

expenses. Interest expenses are recognized in the income statement over the lease term

and the asset is amortized over the lease term. Assets and liabilities arising from leases are

initially measured at present value. Lease liabilities include the net fair value of rentals,

consisting of a fixed payment and a variable rent that are index- or price-level dependent.

The lease liability is discounted to its present value using an interest rate on the additional

loan, consisting of the reference interest rate and the lessee's credit margin, which the

lessee would pay on the acquisition of the corresponding asset by debt financing. This

additional loan rate will vary depending on the duration of the lease and on the currency.

The lease term is the period during which the lease cannot be canceled. The Group leases

typically have a fixed term and some contracts have options for renewal. The option is

included in the lease liability if it is reasonably certain that the option will be exercised. If

there is a change in the estimate of the exercise of the option, the lease liability and the

related asset are reassessed.

A right-of-use asset is measured at cost, which includes the original amount of the lease

liability. In building leases, the lease and non-lease components are treated separately,

wherever they can be identified and distinguished from the right-of-use asset. In

subsequent periods, the accumulated depreciation and impairment losses are deducted

from the asset. Fixed assets are tested for impairment in accordance with IAS 36

Impairment of Assets.

Payments for short-term and low-value leases are recognized as an expense in the income

statement, on a straight-line basis over the lease term. Leases with a maximum term of 12

months are regarded as short-term. Low value assets include IT equipment, office furniture

and other low value machines.

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3.5 OTHER SHARES


2024, EUR million	The shares of Pohjolan Voima Group	Other non-listed shares	Total
Net book value on Jan 1	303.9	1.4	305.4
Additions	—	0.0	0.0
Decreases	—	—	—
Change in fair value	-34.9	—	-34.9
Net book value on Dec 31	269.0	1.5	270.5

2023, EUR million
Net book value on Jan 1	380.6	2.7	383.3
Additions	—	—	—
Decreases	—	-0.3	-0.3
Change in fair value	-76.7	—	-76.7
Reclassifications	—	-1.0	-1.0
Net book value on Dec 31	303.9	1.4	305.4

SHARES IN THE POHJOLAN VOIMA GROUP


EUR million	Class of shares	Holding, %	Class of assets	2024	2023
Pohjolan Voima Oyj	A	5	hydro power	119.6	100.2
Pohjolan Voima Oyj	B	2	nuclear power	40.4	47.9
Pohjolan Voima Oyj	B2	7	nuclear power	30.3	62.9
Teollisuuden Voima Oyj	A	2	nuclear power	77.8	92.2
Other Pohjolan Voima Oyj	G5, G6	several	several	0.8	0.8
Total				269.0	303.9

Kemira Oyj owns 5 % of Pohjolan Voima Oyj, a company of the Pohjolan Voima Group, and 1% of

its joint venture Teollisuuden Voima Oyj.

DISCOUNTED CASH FLOW ASSUMPTIONS AND RELATED SENSITIVITIES


	2024	2023
Short-term discount rate	4.7%	5.1%
Long-term discount rate	4.7%	5.1%
Electricity price estimate EUR/MWh	55.13 - 64.60	51.85 - 69.32
Forward electricity prices EUR/MWh	29.45 - 70.90	44.25 - 95.25

A 10% decrease or increase in the electricity market price in the future would negatively or

positively impact the fair value of the shares by approximately EUR +/- 104 million (+/- 98). An

increase or decrease of one percentage point in the discount rate would negatively or

positively impact the fair value of the shares by approximately EUR -54 million (-49 ) or

approximately EUR 80 million (69).

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The Group's accounting policies

Other shares

Other shares are classified at fair value through other comprehensive income. Changes in

the fair value of other shares are recognized in other comprehensive income, under equity in

the fair value reserve, taking the tax effect into account and including gains and losses from

sales. The dividends are recognized in the profit or loss statement. Other shares include

non-listed companies, with the shareholdings in Pohjolan Voima Oyj (PVO) and Teollisuuden

Voima Oyj (TVO) representing the largest investments.

PVO and its joint venture TVO comprise a private energy generating group, owned by Finnish

manufacturing and power companies, to whom it supplies energy at cost. Kemira Group has

A series shares in TVO and A, B and G series shares in PVO. The shareholdings of PVO's B

series are related to the holdings in TVO and TVO operates three nuclear power plant units

(Olkiluoto 1, 2 and 3) in Olkiluoto in the municipality of Eurajoki in Finland. Different share

series entitle the shareholder to electricity generated by different power plants. The owners

of each separate share series are responsible for the fixed costs of the series in question, in

proportion to the number of the shares they hold, regardless of whether they use their

power/energy share or not, and for variable costs in proportion to the amount of energy

used.

Kemira Oyj’s ownership in the PVO Group, which entitles it to electricity from the power

plants in regular production, is measured at the fair value based on the discounted cash flow

resulting from the difference between the market price of the electricity and the cost price.

The forward electricity price quotations for the Finnish price area, published by the Nordic

Electricity Exchange, have been used as the basis for the market price for the electricity for

the first five years and, thereafter, the development of the electricity price is to be based on

a fundamental simulation model of the Nordic electricity market. The impact of inflation in

the coming years is taken into account in the price of the electricity and in the cost prices.

The cost prices are determined by each share series. Future cash flows have been

discounted based on the estimated useful lifecycles of the plants related to each share

series and hydro power also includes terminal values. The discount rate has been calculated

using the annually determined average weighted cost of capital.

The items in the financial statements that include significant accounting

estimates and accounting policies that require judgment

Estimated fair value of shares in the PVO Group

The Group’s shareholding in the unlisted PVO Group is measured at fair value, based on the

discounted cash flow resulting from the difference between the market price of electricity

and the cost price, using the valuation model. Developments in the actual fair value may

differ from the estimated value due to factors such as electricity prices, inflation, the

forecast period or the discount rate.

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3.6 BUSINESS COMBINATIONS

2024: The acquisition of Norit's UK reactivation operations

In Q3 2024, Kemira acquired Norit's UK reactivation operations. Kemira has a 100% interest in

the acquired business. The acquisition was not material to Kemira's consolidated income

statement and balance sheet.

The acquisition calculation under IFRS 3 is provisional. The fair values of the net assets and

goodwill may change during the 12-month period during which the acquisition calculation will

be finalized. The purchase price of EUR 3.2 million was paid in cash. Based on preliminary

acquisition calculations, EUR 0.6 million was allocated to intangible assets such as customer

lists. A provisional goodwill of EUR 2.5 million arises mainly from the expected synergies.

The acquired subsidiary Purton Carbons Limited was consolidated into the Industry & Water

segment in Q3 2024.

2023: The acquisition of SimAnalytics Oy

In Q3 2021, Kemira acquired a minority interest in the advanced process optimization start-up

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 made 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.

The Group's accounting policies

Business combinations

The acquisition method is applied to business combinations. The consideration transferred

for the acquisition of a subsidiary is defined as an aggregate of the fair values of the assets

transferred, the liabilities assumed and the equity interest issued by the Group. The

consideration transferred may include the fair value of any asset or liability resulting from a

contingent consideration arrangement. Acquisition-related costs are expensed as incurred.

Identifiable assets acquired and liabilities and contingent liabilities that are assumed in a

business combination are measured at their fair values on the acquisition date.

3.7 ASSETS CLASSIFIED AS 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 site specific

closing conditions.

The total consideration on a cash and debt-free basis amounts to approximately USD 280

million, around EUR 260 million. The recognized loss from the sale of the Oil & Gas business

was EUR 112 million, including related expenses, of which EUR 11 million was recognized in

2024. The Oil & Gas business was part of Kemira's Industry & Water segment.

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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 on the consolidated

balance sheet, on separate lines. The tables below provide more information on the

assets as held-for-sale and on the related liabilities.

ASSETS CLASSIFIED AS HELD-FOR-SALE AT FAIR VALUES


EUR million	Note	2024	2023
Goodwill	3.1.	—	—
Intangible assets	3.2.	—	1.6
Property, plant and equipment	3.3.	4.5	109.5
Right-of-use assets	3.4.	5.5	17.8
Deferred tax assets	4.4.	—	19.2
Inventories	4.1.	—	48.3
Trade receivables and other receivables	4.2.	—	57.0
Cash and cash equivalents	5.4.	—	2.2
Total		9.9	255.6

LIABILITIES DIRECTLY ASSOCIATED WITH THE ASSETS CLASSIFIED AS

HELD-FOR-SALE


EUR million	Note	2024	2023
Liabilities related to right-of-use assets	5.3.	12.0	24.1
Deferred tax liabilities	4.4.	—	32.1
Trade payables and other liabilities	4.3.	—	44.0
Current income tax liabilities		—	4.6
Total		12.0	104.8

The Group's accounting policies

Non-current assets held for sale

Non-current assets are classified as assets held for sale when their carrying amount is to be

recovered principally through a sale transaction and a sale transaction is considered highly

probable. Since the time of classification, the assets have been valued as the lower of the

carrying amount or the fair value, less the costs to sell. Depreciation on these assets

discontinues at the time of classification. Non-current assets classified as held for sale are

disclosed separately in the balance sheet.

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4. Working capital and other balance sheet items

NET WORKING CAPITAL


EUR million	Note	2024	2023
Inventories	4.1.	307.9	281.8
Trade receivables and other receivables	4.2.	420.1	468.2
Excluding financing items in other receivables ¹⁾		-7.1	-18.6
Trade payables and other liabilities	4.3.	517.8	489.4
Excluding financing items in other liabilities ¹⁾		-44.5	-37.0
Total		247.7	278.9

1) Includes mainly interest income and expenses, exchange gains and losses and hedging related items.

Due to the Oil & Gas divestment, in net working capital in 2023, EUR 48.3 million of inventory,

EUR 57.0 million of trade receivables and other receivables and EUR 44.0 million trade

payables and other payables have been reclassified as held-for-sale. Kemira has completed

the divestment in February 2024.

Quarterly information on net working capital is disclosed in the section on Reconciliation to

IFRS figures.

4.1 INVENTORIES


EUR million	2024	2023
Materials and supplies	115.1	113.0
Finished goods	171.6	149.4
Prepayments	21.3	19.4
Total	307.9	281.8

In 2024, EUR 1.5 million (2.4 ) of the inventory value was recognized as an expense in order to

decrease the book values of the inventories to correspond with their net realizable value.

The Group's accounting policies

Inventories

Inventories are measured at the lower of cost and net realizable value. Costs are determined

on a first-in first-out (FIFO) basis or by using a weighted average cost formula, depending on

the nature of the inventory. The cost of finished goods and work in progress includes the

proportion of production overheads at normal capacity. The net realizable value is the sales

price received in the ordinary course of business, less the estimated costs for completing

the asset and the sales costs.

4.2 TRADE RECEIVABLES AND OTHER CURRENT RECEIVABLES


EUR million	2024	2023
Trade and other receivables
Trade receivables	345.8	386.2
Prepayments	11.2	8.5
Prepaid expenses and accrued income	25.5	38.9
Other current receivables	37.6	34.7
Total	420.1	468.2

AGING OF OUTSTANDING TRADE RECEIVABLES


	2024
EUR million	Receivables, gross amount	Expected credit losses	Receivables, net amount
Not due trade receivables	299.2	-0.5	298.7
Trade receivables 1-90 days overdue	45.5	-0.1	45.4
Trade receivables more than 91 days overdue	5.8	-4.0	1.8
Total	350.4	-4.6	345.8

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	2023
EUR million	Receivables, gross amount	Expected credit losses	Receivables, net amount
Not due trade receivables	327.9	-0.1	327.7
Trade receivables 1-90 days overdue	58.1	-0.3	57.8
Trade receivables more than 91 days overdue	5.0	-4.3	0.6
Total	390.9	-4.8	386.2

In 2024 , the impairment loss (+) /gain(-) of trade receivables amounted to EUR 0.6 million

( -0.2 ).

In 2024, items that were due in a time period longer than one year included trade receivables

of EUR 0.8 million (0.3), prepaid expenses and an accrued income of EUR 1.6 (1.3), other

receivables of EUR 0.4 (0.1) and prepayments of EUR 0.2 (0.0).

The Group's accounting policies

Trade receivables, loan receivables and other current receivables

Trade receivables, loan receivables and other current receivables are initially recognized at

fair value and subsequently measured at amortized cost, taking impairment into account.

These items are subject to a simplified impairment model, in accordance with the IFRS 9

standard, where the estimated amount of credit losses is based on the expected credit

losses over their expected life.

The expected credit loss rates for the impairment model vary for trade receivables in EMEA,

Americas and APAC, according to age distribution and geographical area. Credit loss rates

are based on sales payment profiles and historical credit losses.

The expected credit losses for trade receivables are recognized using the simplified

impairment model, in accordance with IFRS 9. Expected credit losses are calculated by

multiplying the book value of unpaid trade receivables by the expected credit loss rate for

the geographical area. Any trade receivables overdue by more than 180 days are assessed

using a specific risk assessment. In addition, an estimate of a credit loss is recognized for

individual trade receivables when there is objective evidence that the receivables will not be

recovered on all the original terms.

Trade receivables, loan receivables and other current receivables do not include a significant

financial component.

4.3 TRADE PAYABLES AND OTHER CURRENT LIABILITIES


EUR million	2024	2023
Trade payables and other liabilities
Prepayments received	3.1	1.6
Trade payables	237.7	226.7
Accrued expenses	233.2	218.4
Other non-interest-bearing current liabilities	43.8	42.7
Total	517.8	489.4


Accrued expenses
Employee benefits	97.0	89.7
Items related to revenue and purchases	94.0	91.4
Interest	7.1	7.7
Exchange rate differences	11.7	6.9
Other	23.4	22.7
Total	233.2	218.4

The Group's accounting policies

Trade payables and other current liabilities

Trade and other payables are presented as current liabilities if payment is due within 12

months after the financial period. Trade payables are initially recognized at fair value and

subsequently measured at amortized cost.

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4.4 DEFERRED TAX LIABILITIES AND ASSETS


EUR million	On Jan 1, 2024	Recognized in the income statement	Recognized in other comprehensive income	Recognized in equity	Acquired subsidiaries and items classified as held-for-sale	Exchange differences and reclassifications	On Dec 31, 2024
Deferred tax liabilities
Intangible and fixed assets	40.4	1.8	0.0	0.0	0.0	-0.4	41.8
Leased assets	1.7	4.1	0.0	0.0	0.0	1.6	7.4
Other shares	37.3	0.0	-7.0	0.0	0.0	0.0	30.4
Financial instruments	3.0	-0.5	-2.2	0.0	0.0	0.0	0.4
Defined benefit arrangements	20.9	-1.8	4.2	0.0	0.0	0.0	23.3
Fair value adjustments of net assets acquired	0.4	-0.1	0.0	0.0	0.1	0.0	0.5
Other accruals	4.5	-0.5	-0.2	-0.9	0.0	-0.1	2.8
Total	108.3	3.0	-5.2	-0.9	0.1	1.1	106.5
Deducted from deferred tax assets	-27.0						-33.4
Deferred tax liabilities in the balance sheet	81.3						73.1

Deferred tax assets
Intangible and fixed assets	8.0	-1.7	0.0	0.0	0.0	-1.0	5.4
Provisions and accruals	17.7	8.8	0.0	0.0	0.0	-0.8	25.8
Lease liabilities	4.2	3.1	0.0	0.0	0.0	1.9	9.1
Financial instruments	0.6	-0.5	1.3	0.0	0.0	0.0	1.4
Tax losses and tax credits	17.2	-5.3	0.0	0.0	0.0	1.5	13.4
Defined benefit arrangements	3.4	-0.6	1.7	0.0	0.0	0.1	4.6
Other	7.7	-0.8	0.0	0.0	0.0	-1.5	5.2
Total	58.8	3.0	3.0	0.0	0.0	0.2	65.0
Deducted from deferred tax liabilities	-27.0						-33.4
Deferred tax assets in the balance sheet	31.8						31.5

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EUR million	On Jan 1, 2023	Recognized in the income statement	Recognized in other comprehensive income	Recognized in equity	Acquired subsidiaries and items classified as held-for-sale	Exchange differences and reclassifications	On Dec 31, 2023
Deferred tax liabilities
Intangible and fixed assets	73.2	-0.8	0.0	0.0	-29.4	-2.5	40.4
Leased assets ¹⁾	0.0	3.1	0.0	0.0	-1.2	-0.2	1.7
Other shares	52.7	0.0	-15.3	0.0	0.0	0.0	37.3
Financial instruments	16.5	0.0	-11.6	0.0	0.0	-1.9	3.0
Defined benefit arrangements	15.9	0.2	5.1	0.0	0.0	-0.3	20.9
Fair value adjustments of net assets acquired	0.6	-0.3	0.0	0.0	0.2	0.0	0.4
Other accruals	4.3	1.8	-0.6	0.7	-1.4	-0.2	4.5
Total	163.1	4.0	-22.5	0.7	-31.9	-5.1	108.3
Deducted from deferred tax assets	-44.9						-27.0
Deferred tax liabilities in the balance sheet	118.2						81.3

Deferred tax assets
Intangible and fixed assets	0.0	5.8	0.0	0.0	-7.2	9.4	8.0
Provisions and accruals	20.7	0.8	0.0	0.0	-10.3	6.5	17.7
Lease liabilities ¹⁾	0.0	4.4	0.0	0.0	-1.5	1.3	4.2
Financial instruments	0.0	0.5	2.0	0.0	0.0	-1.9	0.6
Tax losses and tax credits	21.3	-3.4	0.0	0.0	0.0	-0.7	17.2
Defined benefit arrangements	2.6	-0.2	0.7	0.0	0.0	0.4	3.4
Other	27.5	0.2	0.0	0.0	-0.2	-19.8	7.7
Total	72.0	8.1	2.7	0.0	-19.2	-4.8	58.8
Deducted from deferred tax liabilities	-44.9						-27.0
Deferred tax assets in the balance sheet	27.1						31.8

1) As a result of the amendment to the IAS 12 standard, as of January 1, 2023, deferred taxes have been recognized in connection with initial recognition of the leases for new lease contracts.

The Group's accounting policies

Deferred taxes

Deferred tax is recognized, using the liability method, on temporary differences arising

between the tax bases of the assets and liabilities and their carrying amounts in the

Consolidated Financial Statements. Deferred tax in the initial recognition of goodwill is

recognized only in cases where goodwill is locally tax deductible. Deferred income tax is

determined using tax rates (and laws) that have been enacted or substantially enacted by

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the balance sheet date and are expected to apply when the related deferred income tax

asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that a future

taxable profit will be available against which the temporary differences can be utilized.

Deferred income tax is provided on temporary differences arising on investments in

subsidiaries and associates, except for deferred income tax liability where the timing of the

reversal of the temporary difference is controlled by the Group and it is probable that the

temporary difference will not be reversed in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right

to offset the current tax assets against current tax liabilities, and when the deferred income

tax assets and liabilities relate to the income taxes levied by the same taxation authority on

either the same tax entity or on different taxable entities where there is an intention to

settle the balances on a net basis.

The items in the financial statements that include significant accounting

estimates and accounting policies that require judgment

Deferred taxes

For the recognition of deferred tax assets for tax losses and other items, the management

assesses the amount of a probable future taxable profit against which unused tax assets

can be utilized. Actual profits may differ from the forecasts and in such cases may affect

taxes in future periods.

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4.5 DEFINED BENEFIT PENSION PLANS AND EMPLOYEE BENEFITS

The Group has several defined benefit pension plans and other employee benefit obligations.

The main defined benefit pension plans are in Finland, Sweden and Germany.

Finland

The Group's most significant defined benefit plan is in Finland, through Pension Fund

Neliapila, which takes care of part of some employees' supplementary pension benefits.

Pension Fund Neliapila covers employees whose employment with Kemira began before

January 1, 1991, meaning that the fund is closed to new employees. Currently the majority of

the members of Pension Fund Neliapila are pensioners. At the end of 2024, the obligations of

Pension Fund Neliapila totaled EUR 141.8 million (156.2) and the assets of the plan totaled EUR

257.4 million (262.5).

Pension Fund Neliapila's supplementary benefits include old-age pensions, disability

pensions, survivors' pensions and funeral grants. The aggregated pension benefit is 66

percent of the pension salary. To qualify for a full pension, an employee must have accrued a

pensionable service of 25 years. The supplementary pension benefit is the difference

between the aggregated and compulsory pension benefits.

The Board of Directors of Pension Fund Neliapila decided in December 2024 to return the

fund's surplus of EUR 10 million to Kemira Group companies. The return of the surplus will be

paid by Pension Fund Neliapila when approval is obtained from the Financial Supervisory

Authority. The approval is required by the Pension Fund Act. The surplus payment is expected

to be paid during the first half of 2025. The Group has not recognized any items regarding the

return of the surplus in the Consolidated Financial Statements 2024.

Sweden

In Sweden, there is a defined benefit pension plan called the ITP 2 plan for white-collar

employees. To qualify for a full pension, an employee must have a projected period of

pensionable service, from the date of entry until retirement age, of at least 30 years. The

pension arrangements comprise the normal retirement pension, complementary retirement

pensions and a survivors' pension. In addition, Kemira must have credit insurance from PRI,

the Pensionsgaranti Mutual Insurance Company, for the ITP 2 plan pension liability. At the end

of 2024, the defined benefit obligations in Sweden totaled EUR 41.7 million (38.2).

ASSETS AND LIABILITIES OF DEFINED BENEFIT PLANS RECOGNIZED IN

THE BALANCE SHEET


EUR million	2024	2023
Present value of defined benefit obligations	222.5	233.9
Fair value of plans' assets	-265.3	-272.2
Surplus (-) / Deficit (+)	-42.8	-38.3
The effect of asset ceiling	0.4	1.8
Net receivables (-) / liabilities (+) of defined benefit plans recognized in the Balance Sheet	-42.4	-36.5

Liabilities of defined benefit plans	73.1	69.8
Receivables of defined benefit plans	-115.7	-106.3
Net receivables (-) / liabilities (+) of defined benefit plans recognized in the Balance Sheet	-42.4	-36.5

AMOUNTS OF DEFINED BENEFIT PLANS RECOGNISED IN THE INCOME STATEMENT
Service costs	1.7	2.0
Net interest cost ¹⁾	-0.6	-0.5
Defined benefit plans' expenses (+) / income (-) in the Income Statement	1.1	1.5

1) Net interest costs are presented in net finance costs, in the Consolidated Income Statement.

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DEFINED BENEFIT PLANS RECOGNIZED IN THE OTHER COMPREHENSIVE

INCOME


EUR million	2024	2023
Items resulting from remeasurements of defined benefit plans ²⁾
Actuarial gains (-) / losses (+) in defined benefit obligations arising from changes in demographic assumptions	0.0	0.3
Actuarial gains (-) / losses (+) in defined benefit obligations arising from changes in financial assumptions	0.0	1.9
Actuarial gains (-) / losses (+) in defined benefit obligations arising from experience based assumptions	-2.0	6.9
Actuarial gains (-) / losses (+) in plan assets ³⁾	-10.2	-32.2
Effect from asset ceiling	-1.5	0.3
Defined benefit plans' expenses (+) / income (-) in the other comprehensive income	-13.8	-22.8

2) The remeasurements of defined benefit plans are included in the Statement of Comprehensive Income, as part of

Other comprehensive income. The item has been disclosed net of tax and the related income tax is disclosed in Note 2.8.

Other comprehensive income.

3) In 2024 and 2023, the actuarial gains are mainly due to the return on assets in Pension Fund Neliapila.

CHANGES IN PLAN ASSETS OVER THE PERIOD IN DEFINED BENEFIT

PLANS


EUR million	2024	2023
Defined benefit obligation on Jan 1	233.9	231.5
Current service costs	1.3	1.6
Interest costs	7.4	8.4
Actuarial losses (+) / gains (-)	-2.0	9.1
Exchange differences on foreign plans	-0.9	0.0
Benefits paid	-17.0	-16.8
Curtailments and settlements	0.0	0.0
Other items	-0.2	0.0
Present value of defined benefit obligations on Dec 31	222.5	233.9

CHANGES IN PLAN ASSETS OVER THE PERIOD

IN DEFINED BENEFIT PLANS


EUR million	2024	2023
Fair value on Jan 1	272.2	244.4
Interest income	8.1	9.0
Contributions	0.3	0.4
Return of surplus assets ⁴⁾	-11.9	—
Actuarial losses (-) / gains (+)	10.2	32.2
Exchange differences on foreign plans	0.2	0.1
Benefits paid	-13.1	-13.3
Curtailments and settlements	0.0	0.0
Other items	-0.7	-0.5
Fair value of plan assets on Dec 31	265.3	272.2

4) In 2024, Pension Fund Neliapila paid a surplus return of EUR 11.9 million to Kemira Group companies.

PLAN ASSETS BY ASSET CATEGORY IN DEFINED BENEFIT PLANS


EUR million	2024	2023
Interest rate investments and other assets	131.1	144.1
Shares and share funds	91.2	79.5
Properties occupied by the Group	43.0	46.8
Kemira Oyj's shares	—	1.9
Total assets	265.3	272.2

The Finnish Pension Fund Neliapila holds most of the defined benefit plan’s assets. At the end

of 2024, Pension Fund Neliapila's assets amounted to EUR 257.4 million (262.5), which

consisted of interest rate investments and other assets of EUR 123.3 million (134.5), shares

and share funds of EUR 91.1 million (79.4) and property investments of EUR 43.0 million (46.8).

Within Pension Fund Neliapila, the investment position is managed within an asset-liability

matching (ALM) framework that has been developed to combine long-term investments in line

with the obligations under the pension plan. Market risks can be considered a significant

investment risk within Pension Fund Neliapila. The market risks arising from cyclical

fluctuations of the financial markets are managed by ensuring that the investment position is

sufficiently diversified.

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The income (+) / expense (-) of the actual returns on the plan assets of the Group's defined

benefit plan were EUR 18.3 million (41.2).

SIGNIFICANT ACTUARIAL ASSUMPTIONS


%	2024	2023
Discount rate	3.0 - 5.6	3.1 - 4.5
Inflation rate	1.9 - 3.2	1.6 - 3.1
Future salary increases	2.3 - 2.5	2.1 - 2.5
Future pension increases	2.0 - 2.2	2.0 - 2.3

The significant assumptions used in calculating the obligations of the Finnish Pension Fund

Neliapila were as follows: discount rate 3.2% (3.1%), inflation rate 1.9% (2.1%), future salary

increases 1.9% (2.1%) and future pension increases 2.1% (2.3%).

Sensitivity analysis

The sensitivity analysis is based on keeping other assumptions constant when one

assumption is changed. In practice, this is unlikely to occur and changes in some of the

assumptions may correlate with each other. When calculating the sensitivity of the defined

benefit obligation with significant actuarial assumptions, the same method has been applied

as when calculating the pension liability recognized within the balance sheet.

If the discount rate would be 0.5 percentage points lower in all of the significant countries, the

defined benefit obligation would increase by EUR 11.1 million (5.0%), if all other assumptions

were held constant.

SENSITIVITY ANALYSIS - PENSION FUND NELIAPILA IN FINLAND


	Defined benefit obligation		Impact on defined benefit obligation
EUR million	2024	2023	2024	2023
Discount rate 3.2% (3.1%)	141.8	156.2
Discount rate +0.5%	135.6	149.2	-4.3%	-4.5%
Discount rate -0.5%	148.4	163.8	4.7%	4.9%

Future pension increases 2.1% (2.3%)	141.8	156.2
Future pension increases +0.5%	147.7	163.0	4.2%	4.4%
Future pension increases -0.5%	136.2	149.8	-3.9%	-4.1%

A change in the mortality assumption where life expectancy is increased by one year will

increase the defined benefit obligation by EUR 6.3 million (4.4%).

SENSITIVITY ANALYSIS - ITP 2 PENSION PLAN IN SWEDEN


	Defined benefit obligation		Impact on defined benefit obligation
EUR million	2024	2023	2024	2023
Discount rate 3.0% (3.8%)	41.7	38.2
Discount rate +0.5%	39.2	36.0	-6.1%	-5.8%
Discount rate -0.5%	44.6	40.7	6.8%	6.4%

Future salary increases 2.3% (2.1%)	41.7	38.2
Future salary increases +0.5%	42.5	38.9	1.8%	1.6%
Future salary increases -0.5%	41.0	37.7	-1.6%	-1.5%

A change in the mortality assumption where life expectancy is increased by one year will

increase the defined benefit obligation by EUR 1.7 million (4.1%).

Expected contributions to the defined benefit plans for the year ending on December 31, 2025

are EUR 3.6 million. In addition, Pension Fund Neliapila is expected to pay a surplus

return of EUR 10 million to Kemira Group companies during the first half of 2025.

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The Group's accounting policies

Defined benefit pension plans and employee benefits

The Group has different post-employment schemes, including both defined contribution and

defined benefit pension plans, in accordance with the local legislation and practices of the

countries in which it operates. Pension plans are generally funded through contributions to

pension insurance companies or to a separate pension fund.

A defined contribution plan is a pension plan under which the Group pays fixed contributions

into a separate entity. The Group has no legal or constructive obligations to pay further

contributions if the fund does not hold sufficient assets to pay all employees the benefits

relating to employee service in the current and prior periods. A defined benefit plan is a

pension plan that is not a defined contribution plan.

Typically, defined benefit plans define an amount of pension benefit that an employee will

receive on retirement, usually dependent on one or more factors such as their

compensation level and their years of service.

The liability recognized in the balance sheet in respect to the defined benefit pension plans

is the present value of the defined benefit obligation at the end of the reporting period, less

the fair value of plan assets. The defined benefit obligation is calculated annually by

independent actuaries, using the projected unit credit method. The present value of the

defined benefit obligation is determined by discounting the estimated future cash outflows,

using the interest rates of high-quality corporate bonds that are denominated in the

currency in which the benefits will be paid and with their terms to maturity approximating

the terms of the related pension obligation. In countries where there is no deep market in

such bonds, the market rates for government bonds are used.

Actuarial gains and losses arising from experience adjustments and changes in actuarial

assumptions are charged or credited to equity in other comprehensive income in the period

in which they arise.

Current service costs are included in the Consolidated Income Statement, in the employee

benefit expenses and net interest costs on finance income and finance expense. Past

service costs are recognized immediately in profit or loss.

For defined contribution plans, the Group pays contributions to publicly or privately

administered pension insurance plans on a mandatory, contractual or voluntary basis. The

Group has no further payment obligations once the contributions have been paid. The

contributions are recognized as employee benefit expenses when they are due. Prepaid

contributions are recognized as an asset to the extent that a cash refund or a reduction in

the future payments is available.

The items in the financial statements that include significant accounting

estimates and accounting policies that require judgment

Defined benefit pension plans

Determining pension liabilities under defined benefit pension plans includes a number of

actuarial assumptions and significant changes in these assumptions may affect the

amounts of pension liabilities and expenses. Actuarial calculations include assumptions by

the management, such as the discount rate and assumptions of salary increases and the

termination of employment contracts. The pension liability is calculated by independent

actuaries.

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4.6 PROVISIONS


EUR million	Personnel related provisions	Restructuring provisions	Environmental provisions ¹⁾	Other provisions ²⁾	Total
Non-current provisions
On January 1, 2024	0.1	0.0	12.4	25.3	37.8
Exchange rate differences	0.0	0.0	0.0	0.0	0.0
Additional provisions and increases in existing provisions	0.2	0.0	1.3	8.4	9.9
Used during the financial year	0.0	0.0	-0.2	-0.2	-0.5
Unused provisions reversed	0.0	0.0	-0.1	-0.3	-0.4
Reclassification	0.0	0.0	-1.1	-7.8	-8.9
On December 31, 2024	0.2	0.0	12.3	25.4	37.9

Current provisions
On January 1, 2024	0.3	0.0	7.7	8.9	16.9
Exchange rate differences	0.0	0.0	-0.1	0.0	0.0
Additional provisions and increases in existing provisions	3.9	1.0	1.5	0.8	7.3
Used during the financial year	-0.5	0.0	-5.3	-8.7	-14.5
Unused provisions reversed	-0.2	0.0	0.0	-0.5	-0.7
Reclassification	0.0	0.0	1.1	7.8	8.9
On December 31, 2024	3.5	1.0	5.0	8.4	17.9

1) The Group's operations in the chemical industry are governed by numerous international agreements as well as by

regional and national legislation all over the world. The Group treats its environmental liabilities and risks according to

established internal principles and procedures. In 2024, provisions for environmental remediation totaled EUR 17.3

million (20.1). The biggest provisions relate to site closures and to the reconditioning of the sediment of a lake in Vaasa,

Finland.

2) Other provisions totaled EUR 33.8 million (34.2). The biggest provisions relate to expected liabilities for an energy

company producing steam in Pori, Finland, owned via Pohjolan Voima.


EUR million	2024	2023
Breakdown of the total amount of provisions
Non-current provisions	37.9	37.8
Current provisions	17.9	16.9
Total	55.8	54.6

The Group's accounting policies

Provisions

Provisions for restructuring costs, personnel related costs, environmental obligations, legal

claims and onerous contracts are recognized when the Group has a present legal or

constructive obligation as a result of past events and it is probable that an outflow of

resources will be required to settle the obligation and, furthermore, a reliable estimate of

the amount of this obligation can be made. A restructuring provision is recognized when

there is a detailed and appropriate plan prepared for it and the implementation of the plan

has begun or has been notified to those whom the restructuring concerns.

The amount recognized as a provision is the present value of the expenditure expected to be

required to settle the obligation on the balance sheet date, using a pre-tax interest rate that

reflects current market assessments of the time value of money and the risks specific to the

obligation.

The items in the financial statements that include significant accounting

estimates and accounting policies that require judgment

Provisions

Recognizing provisions requires the management’s estimates, since the precise amount of

obligations related to the provisions is not known when preparing the Financial Statements.

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5. Capital structure and financial risks

5.1 CAPITAL STRUCTURE


EUR million	2024	2023
Equity	1,803.5	1,684.2
Total assets	3,381.0	3,489.3

Gearing, % ¹⁾	16	32
Equity ratio, % ²⁾	53	48

1) The definition of the key figure for Gearing is 100 × Interest-bearing net liabilities / Total equity.

2) The definition of the key figure for the Equity ratio is 100 × Total equity / (Total assets - prepayments received).

INTEREST-BEARING NET LIABILITIES


EUR million	Note	2024	2023
Non-current interest-bearing liabilities	5.3.	547.1	615.7
Current interest-bearing liabilities	5.3.	263.6	322.1
Interest-bearing liabilities		810.7	937.8
Cash and cash equivalents	5.4.	519.2	402.5
Interest-bearing net liabilities		291.5	535.2

Quarterly information on interest-bearing net liabilities is disclosed in the section on the

Reconciliation with IFRS figures.

Kemira aims to achieve over 4% average annual organic growth, with an operative EBITDA

margin of 18– 21 %. Operative Return on Capital Employed, ROCE, is targeted to be over 16%.

The revolving credit facility agreement and some bilateral loan agreements contain a

covenant, which is reported quarterly, according to which company gearing must be below

115%. At the end of the financial year there were EUR 363.5 million loans in the balance sheet

bearing the covenant. Kemira has no indication that it will have difficulty complying with this

covenant.

The Board of Directors proposes a per-share dividend of EUR 0.74 for 2024 (0.68),

corresponding to a dividend payout ratio of 46% (52%). Kemira's dividend policy aims for a

competitive dividend that will increase over time.

The Group's accounting policies

Dividend distribution

Any dividend proposed by the Board of Directors is not deducted from distributable equity

until it has been approved by the Annual General Meeting.

Interest-bearing liabilities and cash and cash equivalents

The accounting policies for interest-bearing liabilities and cash and cash equivalents are

described in Note 5.4. Financial assets and liabilities by measurement category.

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INTEREST-BEARING NET LIABILITIES CONNECTED IN CASH FLOW STATEMENTS


EUR million	Non-current interest-bearing liabilities including current portion	Current interest-bearing liabilities	Interest-bearing liabilities total	Cash and cash equivalents	Interest-bearing net liabilities
Net book value on Jan 1, 2024	849.0	88.8	937.8	402.5	535.2
Change in net liabilities with cash flows
Proceeds from non-current liabilities (+)	50.0		50.0		50.0
Payments of non-current liabilities (-)	-200.0		-200.0		-200.0
Payments of lease liabilities (-)	-31.7		-31.7		-31.7
Proceeds from current liabilities (+) and payments (-)		4.3	4.3		4.3
Change in cash and cash equivalents				115.2	-115.2
Change in net liabilities without cash flows
Increases in lease liabilities (+)	37.3		37.3		37.3
Effect on change in exchange gains and losses	7.9	3.2	11.1	1.4	9.6
Other changes without cash flows	1.7	0.2	1.9	—	1.9
Net book value on Dec 31, 2024	714.1	96.5	810.7	519.2	291.5


EUR million	Non-current interest-bearing liabilities including current portion	Current interest-bearing liabilities	Interest-bearing liabilities total	Cash and cash equivalents	Interest-bearing net liabilities
Net book value on Jan 1, 2023	875.5	146.3	1,021.8	250.6	771.2
Change in net liabilities with cash flows
Proceeds from non-current liabilities (+)	0.2		0.2		0.2
Payments of non-current liabilities (-)	—		—		—
Payments of lease liabilities (-)	-37.3		-37.3		-37.3
Proceeds from current liabilities (+) and payments (-)		-50.7	-50.7		-50.7
Change in cash and cash equivalents				158.0	-158.0
Change in net liabilities without cash flows
Increases in lease liabilities (+)	36.4		36.4		36.4
Effect on change in exchange gains and losses	-4.4	-6.8	-11.1	-6.1	-5.0
Other changes without cash flows ¹⁾	-21.5	—	-21.5	—	-21.5
Net book value on Dec 31, 2023	849.0	88.8	937.8	402.5	535.2

1) Due to the Oil & Gas divestment EUR 24.1 million of lease liabilities have been reclassified as held-for-sale. Kemira completed the divestment in February 2024.

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5.2 SHAREHOLDERS' EQUITY

SHARE CAPITAL AND TREASURY SHARES


EUR million	Number of shares outstanding (1,000)	Number of treasury shares (1,000)	Number of shares (1,000)	Book value of share capital	Book value of treasury shares
January 1, 2024	153,619	1,723	155,343	221.8	11.6
Treasury shares issued to the participants in the share incentive plan 2021-2023	468	-468	—	—	-3.2
Treasury shares issued to the Board of Directors	10	-10	—	—	-0.1
As part of Pension fund Neliapila surplus return, shares were transferred to Kemira Oyj	-115	115	—	—	1.9
December 31, 2024	153,983	1,359	155,343	221.8	10.3

January 1, 2023	153,352	1,990	155,343	221.8	13.4
Treasury shares issued to the participants in the share incentive plan 2020-2022	254	-254	—	—	-1.7
Treasury shares issued to the Board of Directors	13	-13	—	—	-0.1
December 31, 2023	153,619	1,723	155,343	221.8	11.6

Kemira Oyj has one class of shares. Each share entitles its holder to one vote at the Annual

General Meeting. On December 31, 2024, the share capital was EUR 221.8 million and the

number of shares was 155,342,557, including 1,359,348 treasury shares. Under the Articles of

Association of Kemira Oyj, the company does not have a minimum or maximum share capital

or a par value for a share. All issued shares have been fully paid.

Kemira had possession of 1,359,348 (1,722,725) treasury shares on December 31, 2024 .

The average share price of the treasury shares was EUR 7.58 (6.73) and they represented

0.9% (1.1%) 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 (2.5).

Share premium

The share premium is a reserve accumulated through subscriptions and participation in the

management stock option program of 2001. This reserve is based on the old Finnish

Companies Act (734/1978) and the value of the reserve will no longer change.

Fair value reserves

The fair value reserve is a reserve accumulated based on other shares, measured at fair value

and using hedge accounting.

Other reserves

Other reserves originate from local legal requirements. On December 31, 2024, other reserves

were EUR 4.1 million (4.1).

Unrestricted equity reserve

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.

Exchange differences

Foreign currency exchange differences arise from the translation of foreign subsidiaries'

financial statements. Additionally, loans have been granted to some foreign subsidiaries and

the exchange differences of these have been included in foreign currency exchange

differences.

The Group's accounting policies

Treasury shares

Purchases of own shares (treasury shares), including the related costs, are deducted

directly from equity in the Consolidated Financial Statements.

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5.3. INTEREST-BEARING LIABILITIES

MATURITY OF INTEREST-BEARING LIABILITIES


2024, EUR million	2025	2026	2027	2028	2029	2030-	Book value, total
Loans from financial institutions	133.5	60.0	120.0	7.7	7.7	34.6	363.5
Bonds	—	—	—	195.3	—	—	195.3
Lease liabilities	27.6	24.1	18.5	13.3	8.8	40.0	132.2
Other non-current liabilities	6.3	16.9	—	—	—	—	23.2
Other current liabilities	96.5	—	—	—	—	—	96.5
Total amortizations of interest- bearing liabilities	263.9	101.0	138.5	216.3	16.5	74.6	810.7


2023, EUR million	2024	2025	2026	2027	2028	2029-	Book value, total
Loans from financial institutions	—	190.9	—	120.0	—	—	310.9
Bonds	199.6	—	—	—	193.9	—	393.5
Lease liabilities	27.6	20.0	16.6	11.5	7.8	38.0	121.4
Other non-current liabilities	6.1	1.0	16.0	—	—	—	23.2
Other current liabilities	88.8	—	—	—	—	—	88.8
Total amortizations of interest- bearing liabilities	322.1	211.9	32.6	131.5	201.7	38.0	937.8

At year-end 2024, the Group's interest-bearing net liabilities were EUR 291.5 million (535.2 ).

For more information, see Note 5.1. Capital structure.

MATURITY OF NON-CURRENT INTEREST-BEARING LIABILITIES BY

CURRENCY


2024							Book value, total
Currency, EUR million	2025	2026	2027	2028	2029	2030-	Book value, total
EUR	96.3	81.4	123.6	205.0	8.9	49.9	565.1
USD	57.8	14.5	12.2	9.8	6.8	21.3	122.4
GBP	1.1	1.0	0.6	0.3	0.2	0.9	4.1
Other	12.1	4.1	2.1	1.1	0.5	2.6	22.5
Total	167.4	101.0	138.5	216.3	16.5	74.6	714.2


2023							Book value, total
Currency, EUR million	2024	2025	2026	2027	2028	2029-	Book value, total
EUR	206.8	155.3	18.9	122.1	195.2	14.0	712.3
USD	12.4	52.4	10.4	8.3	5.9	19.4	108.7
GBP	0.9	0.5	0.2	—	—	1.7	3.3
Other	13.3	3.8	3.0	1.1	0.6	2.9	24.6
Total	233.3	211.9	32.6	131.5	201.7	38.0	849.0

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5.4. FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY

FINANCIAL ASSETS


			2024					2023
EUR million	Note	Book values	Fair values				Book values	Fair values
EUR million	Note	Book values	Level 1	Level 2	Level 3	Total	Book values	Level 1	Level 2	Level 3	Total
Fair value through profit and loss	5.6.
Derivatives not qualifying for hedge accounting		4.3	—	4.3	—	4.3	3.6	—	3.6	—	3.6
Fair value through other comprehensive income	5.6.
Derivatives qualifying for hedge accounting
Cash flow hedges ¹⁾		2.1	—	2.1	—	2.1	15.9	—	15.9	—	15.9
Other shares	3.5.
The shares of Pohjolan Voima Group		269.0	—	—	269.0	269.0	303.9	—	—	303.9	303.9
Other non-listed shares		1.5	—	—	1.5	1.5	1.4	—	—	1.4	1.4
Amortized cost
Other non-current assets ²⁾		6.3	—	6.3	—	6.3	6.3	—	6.3	—	6.3
Loan receivables ²⁾		48.3	—	48.3	—	48.3	0.3	—	0.3	—	0.3
Trade receivables ²⁾	4.2.	345.8	—	345.8	—	345.8	386.2	—	386.2	—	386.2
Cash and cash equivalents
Cash in hand and at bank accounts		266.7	—	266.7	—	266.7	271.0	—	271.0	—	271.0
Deposits and money market investments ³⁾		252.5	—	252.5	—	252.5	131.5	—	131.5	—	131.5
Assets classified as held-for-sale ⁴⁾	3.7.		—	—	—	—	57.1	—	57.1	—	57.1
Total financial assets		1,196.5	—	926.0	270.5	1,196.5	1,177.2	—	871.9	305.3	1,177.2

1) Includes derivative contracts of EUR 0.1 million (1.6) maturing after the year 2025.

2) In 2024, other non-current assets and loan receivables include expected credit losses of EUR 0.9 million (0.2), in accordance with the IFRS 9 standard. Trade receivables include expected credit losses of EUR 4.6 million (4.8).

Trade receivables are disclosed in more detail in Note 4.2. Trade receivables and other receivables.

3) Deposits and money market investments comprise bank deposits and other liquid investments with a maximum original maturity of three months.

4) Kemira completed the divestment of its Oil & Gas business in February 2024 .See Note 3.7. for further details regarding the held-for-sale assets.

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FINANCIAL LIABILITIES


			2024					2023
EUR million	Note	Book values	Fair values				Book values	Fair values
EUR million	Note	Book values	Level 1	Level 2	Level 3	Total	Book values	Level 1	Level 2	Level 3	Total
Fair value through profit and loss	5.6.
Derivatives not qualifying for hedge accounting		3.2	—	3.2	—	3.2	4.1	—	4.1	—	4.1
Fair value through other comprehensive income	5.6.
Derivatives qualifying for hedge accounting
Cash flow hedges ¹⁾		7.3	—	7.3	—	7.3	3.6	—	3.6	—	3.6
Amortized cost
Interest-bearing liabilities	5.3.
Non-current loans from financial institutions		230.4	—	232.3	—	232.3	311.3	—	312.7	—	312.7
Current portion		133.5	—	134.7	—	134.7	—	—	—	—	—
Bonds		195.3	—	194.1	—	194.1	193.9	—	189.8	—	189.8
Current portion		—	—	—	—	—	199.6	—	200.2	—	200.2
Non-current leasing liabilities		104.9	—	104.9	—	104.9	93.9	—	93.9	—	93.9
Current portion		27.3	—	27.3	—	27.3	27.6	—	27.6	—	27.6
Other non-current liabilities		16.5	—	16.6	—	16.6	16.7	—	16.8	—	16.8
Current portion		6.3	—	6.5	—	6.5	6.1	—	6.3	—	6.3
Current loans from financial institutions		96.5	—	96.6	—	96.6	88.8	—	88.7	—	88.7
Non-interest-bearing liabilities
Other non-current liabilities		9.1	—	9.1	—	9.1	8.7	—	8.7	—	8.7
Other current liabilities		26.8	—	26.8	—	26.8	26.2	—	26.2	—	26.2
Trade payables	4.3.	237.7	—	237.7	—	237.7	226.7	—	226.7	—	226.7
Liabilities classified as held-for-sale ²⁾	3.7.	12.0	—	12.0	—	12.0	45.6	—	45.6	—	45.6
Total financial liabilities		1,106.8	—	1,108.9	—	1,108.9	1,252.7	—	1,250.9	—	1,250.9

1) Includes derivative contracts of EUR -1.8 million (-2.1) maturing after the year 2025.

2) Kemira completed the divestment of its Oil & Gas business in February 2024 .See Note 3.7. for further details regarding the held-for-sale assets.

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There were no transfers between levels 1–3 during the financial year.


Level 3 specification, financial assets EUR million	2024	2023
Net book value on Jan 1	305.4	383.3
Effect on other comprehensive income	-34.9	-76.7
Increases	0.0	-0.3
Decreases	—	-1.0
Net book value on Dec 31	270.5	305.4

The Group's accounting policies

When a financial asset or a financial liability is initially recognized on the trade date, it is

measured at cost, which equals the fair value of the consideration given or received.

Financial Assets

The Group’s financial assets are classified for subsequent measurement as financial assets

at fair value through profit or loss, at amortized cost and at fair value through other

comprehensive income.


Category	Financial instrument
Fair value through profit or loss	Currency forward contracts, currency swaps, interest rate swaps, electricity derivative contracts and natural gas derivative contracts, certificates of deposit, and commercial papers
Amortized cost	Loan receivables, cash at bank and in hand, bank deposits, trade receivables, and other receivables
Fair value through other comprehensive income	Other investments: shares, derivatives qualifying for hedge accounting (cash flow or fair value hedging)

Financial assets at fair value through income statements

All derivatives are recognized at fair value on the balance sheet. Fair value is the amount for

which an asset could be exchanged or loans paid between knowledgeable, willing parties in

an arm’s length transaction. These derivative contracts, to which hedge accounting in

accordance with IFRS 9 is not applied, are classified as financial assets at fair value through

profit or loss. On the balance sheet, these derivative contracts are shown under prepaid

expenses and accrued income and accrued expenses and prepaid income. Any gains or

losses arising from changes in fair value are recognized through profit or loss on the

transaction date.

Financial assets at amortized cost

Financial assets at amortized cost include non-current receivables carried at amortized

cost, using the effective interest rate method and accounting for any impairment.

Cash and cash equivalents

Cash and cash equivalents consist of cash at banks and in hand, demand deposits and other

short-term, highly liquid investments. Items classified as cash and cash equivalents have a

maximum maturity of three months from the date of purchase. Credit facilities in use are

included in current interest-bearing liabilities.

Financial assets at fair value through other comprehensive income

The accounting policy on Other shares is described in Notes 3.5. Other shares. The

accounting treatment of change in the fair value of the derivatives qualifying for hedge

accounting is presented in 5.6. Derivatives.

Impairment of financial assets

The Group assesses any impairment losses on its financial instruments on each balance

sheet date. An impairment of a financial asset is recognized in accordance with the

requirements of the expected credit loss model of the IFRS 9 standard. For items measured

at an amortized cost, the amount of the impairment loss equals the difference between the

asset’s carrying amount and the present value of estimated future cash flows from the

receivable. This is discounted at the financial asset’s original effective interest rate. For

items measured at fair value, the fair value determines the amount of impairment.

Impairment charges are recognized in the income statement.

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The Group sells certain trade receivables to finance companies within the framework of

limits stipulated in the agreement. The credit risk associated with these sold receivables and

the contractual rights to the financial assets in question are transferred from the Group on

the selling date. The related expenses are recognized in the financial expenses.

Financial liabilities

Financial liabilities are classified as financial liabilities accounted at fair value through profit

or loss, at amortized cost and at fair value through other comprehensive income. Financial

liabilities at fair value through profit or loss include derivatives to which hedge accounting is

not applied, whereas derivatives which are qualified for hedge accounting are booked at fair

value through other comprehensive income.

Other financial liabilities are initially recognized on the balance sheet at the initial value of

received net assets, with direct costs deducted. Later, these financial liabilities are

measured at amortized cost and the difference between the received net assets and

amortizations is recognized as an interest cost over the loan term. Changes in the fair value

of loans under fair value hedge accounting are booked in the income statement together

with the changes in the fair value of derivatives under fair value hedge accounting.

If the terms of a loan measured at amortized cost are modified and the loan is not

derecognized, the gain or loss of the modification is booked in the income statement at the

point of modification and is then amortized over the life of the modified loan. Profit or loss is

equal to the difference between the present value of the cash flows under the original and

modified terms, discounted at the original effective interest rate.


Category	Financial instrument
Financial liabilities at fair value through profit or loss	Currency forward contracts and currency swaps, interest rate swaps, electricity derivative contracts, and natural gas derivative contracts
Amortized cost	Current and non-current loans, pension loans, bonds, lease liabilities, and trade payables
Financial liabilities at fair value through other comprehensive income	Derivatives qualifying for hedge accounting (cash flow hedging)

The following levels are used to measure fair value:

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

Level 2: Fair value is determined with valuation techniques. Fair value refers either to the

value that is observable from the market value of elements of the financial instrument or the

market value of corresponding financial instruments, or to the value that is observable by

using commonly accepted valuation models and techniques if the market value can be

reliably measured with them.

Level 3: Fair value is determined by using valuation techniques which 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 Group.

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5.5 MANAGEMENT OF FINANCIAL RISKS

Kemira Group Treasury's objective is to ensure sufficient funding in the most cost efficient

way and to manage financial risks. Approved by the Board of Directors, treasury policy defines

the principles of treasury management. The Board of Directors approves both the annual

Treasury plan and the maximum permissible financial risk levels.

Financial risk management aims to protect the Company from unfavorable changes in

financial markets, thereby contributing to safeguarding the Company’s profit performance

and shareholders’ equity and ensuring sufficient sources of finance. Management of financial

risks is centralized in the Group Treasury, which uses, for hedging purposes, derivative

instruments whose market values and risks can be monitored continuously and reliably.

Foreign exchange risk

Foreign currency transaction risk arises from currency flows, assets and liabilities

denominated in currencies other than the domestic currency. Transaction risks arise from

cash flows and balance sheet items where changes in exchange rates will have an impact on

earnings and cash flows. Translation risk arises when the currency denominated income

statement and the balance sheet items of group companies located outside the euro area are

consolidated into euro. The transaction risk is mainly hedged using foreign currency forwards.

The Group’s most significant transaction currency risks arise from the US dollar, the Chinese

renminbi, the Canadian dollar and the Swedish krona. At the end of the year, the US dollar

denominated exchange rate risk against EUR had an equivalent value of approximately

EUR 142 million (132), the average hedging rate and hedging ratio being 1.09 and 62% (56%)

respectively. The Chinese renminbi denominated exchange rate risk was approximately

EUR 121 million (115), the average hedging rate and hedging ratio being 7.72 and 74% (69%)

respectively. The Canadian dollar denominated exchange rate risk was approximately EUR 41

million (56), the average hedging rate and hedging ratio being 1.50 and 73% (56%) respectively.

The denominated exchange rate risk of the Swedish krona against EUR had an equivalent

value of approximately EUR 39 million (35), the average hedging rate and hedging ratio being

11.46 and 71% (73%) respectively.

In addition, Kemira is exposed to smaller transaction risks against EUR, mainly in relation to

the Danish krona, the Polish zloty, the Korean won and the Norwegian krona and against USD

mainly in relation to the Brazilian real and the Canadian dollar with the annual exposure in

those currencies being approximately EUR 144 million.


		2024				2023
Transaction exposure, the most significant currencies, EUR million	USD against EUR	CNY against EUR	CAD against EUR	SEK against EUR	USD against EUR	CNY against EUR	CAD against EUR	SEK against EUR
Operative cash flow forecast, net ¹⁾	141,5	-120,7	40,9	-38,7	131,8	-115,1	55,5	-35,3
Loans, net	289,2	59,2	0,0	-13,6	390,8	57,6	0,0	-9,3
Derivatives, operative cash flow hedging, net	-98,5	90,2	-33,7	25,8	-74,5	82,8	-39,9	25,3
Derivatives, hedging of loans, net	-64,5	-59,3	0,0	14,0	-180,1	-57,6	0,0	9,9
Total	267,7	-30,6	7,2	-12,6	268,0	-32,3	15,6	-9,4

1) Based on a 12-month foreign currency operative cash flow forecast.

At the end of 2024, the foreign currency operative cash flow forecast for 2025 was EUR 553

million, of which 69% was hedged (61%). The hedge ratio is monitored daily. A minimum of

40% and a maximum of 100% of the forecast flow must always be hedged. A 10 percent

strengthening of the euro against the Swedish krona, based on the exchange rates as of

December 31, 2024, without hedging, would increase EBITDA by approximately EUR 4 million

and a 10 percent strengthening of the euro against the Chinese renminbi, without hedging,

would increase EBITDA by approximately EUR 12 million. Whereas, a 10 percent strengthening

of the euro against the Canadian dollar and the US dollar, without hedging, would cause a EUR

4 and 14 million negative impact on EBITDA, respectively. A corresponding decrease in the

exchange rates would have approximately an equal opposite impact.

On the balance sheet date, the market value of currency derivatives included in cash flow

hedge accounting was EUR -3.8 million (4.7). Cash flow hedge accounting deals have been

done to hedge highly probable currency flows. In 2025, no ineffectiveness in derivatives under

hedge accounting was recognized in the Income statement (-).

The most significant translation risk currencies are the US dollar, the Canadian dollar, the

Polish zloty, the Swedish krona and the Chinese renminbi.

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Kemira's main equity items denominated in foreign currencies are in the Canadian dollar, the

Swedish krona and the US dollar. The objective is to hedge the balance sheet risk by

maintaining a balance between foreign currency denominated liabilities and assets, currency

by currency. In hedging the net investment in its units abroad, Kemira monitors the equity

ratio. Long-term loans and currency derivatives can be used for hedging net investments in

foreign subsidiaries. These hedges do not apply to hedge accounting. Loans in US dollars have

been granted to some foreign subsidiaries and the currency differences have been included in

foreign currency translation differences.

Interest rate risk

Kemira is exposed to interest rate risks through interest-bearing loans and derivatives.

Movements in interest rates create re-pricing and price risks, generating fluctuation in cash

flows and fair value of loans and derivatives. A total of 114% (77%) of the Group’s entire net

debt portfolio, including lease liabilities, was fixed at the end of 2024. The net financing cost

for the Group was 6.2% (5.6%). The net financing cost is attained by dividing yearly net

interest and other financing expenses, excluding exchange rate differences and dividends, by

the average interest bearing net debt figure for the corresponding period. The most

significant impact on the net financing cost arises from variation in the interest rate levels of

the euro, the US dollar and the Chinese renminbi.

In accordance with treasury policy, the Group’s interest rate risk is measured with the

duration which describes the average repricing moment of the loan portfolio, excluding lease

liabilities. The duration must be in the range of 6–60 months. The Kemira Group Treasury

manages duration by borrowing with fixed and floating rate loans in addition to interest rate

derivatives. On the balance sheet date, the Group had no outstanding interest rate

derivatives. The duration of the Group’s interest-bearing loan portfolio, excluding lease

liabilities, was 13 months (16) at the end of 2024. On the balance sheet date, the average

interest rate of the loan portfolio was approximately 2.8% (2.8%). A total of 75% (69%) of

the loan portfolio consists of floating rate or fixed rate loans that mature in the following 12

months.

Due to a strong cash position, Kemira will reprice -26% (30%) of the Group's net debt portfolio

in 2025, as shown in the table below.


2024		1–5 years
Time to interest rate fixing, EUR million	<1 year	1–5 years	> 5 years	Total
Floating net liabilities	-130.7	—	—	-130.7
Fixed net liabilities ¹⁾	90.0	200.0	—	290.0
Total	-40.7	200.0	—	159.3

2023		1–5 years
Time to interest rate fixing, EUR million	<1 year	1–5 years	> 5 years	Total
Floating net liabilities	123.8	—	—	123.8
Fixed net liabilities ¹⁾	—	290.0	—	290.0
Total	123.8	290.0	—	413.8

1) Excluding lease liabilities.

If interest rates had risen by one percentage point on January 1, 2025, the consequent net

interest expenses before taxes resulting from loans, cash, deposits and money market

investments over the next 12 months would decrease by approximately EUR 1.4 million (0.5).

Correspondingly, a decrease of one percentage point would increase net interest expenses by

EUR 1.4 million.

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Commodity price risk

Kemira Group is exposed to commodity market price variation, mainly related to the price of

electricity. Kemira Group takes hedging measures with respect to its commodity purchases in

order to even out its raw material costs. In line with its hedging policy, the Group hedges its

existing sales agreements in such a way that the hedges cover the commitments made. The

hedging policy aims to minimize the cash flow risk of electricity and natural gas purchases.

The price of electricity varies greatly according to the market situation. The company primarily

uses electricity derivatives as hedging instruments. Regional price risks in Finland and in

Sweden are hedged. The outstanding electricity derivatives are treated in accordance with

cash flow hedge accounting. The forecasts for physical deliveries of the underlying assets, or

purchases, are not recorded until the delivery period. A +/- 10% change in the market price of

electricity hedging contracts outstanding at year end would impact the valuation of these

contracts by EUR +/- 1.4 million (+/- 3.6). This impact would be in equity.

In addition to electricity derivatives, the Group manages the price risk of electricity by

entering into long-term electricity sourcing agreements. The Group also has shares of 5% of

Pohjolan Voima Oy (PVO) and a 1% share of Teollisuuden Voima Oy. More information on the

share ownership can be found in Note 3.5.

Natural gas price risk is hedged with derivative contracts. The outstanding natural gas

derivatives are treated in accordance with cash flow hedge accounting. A +/- 10% change in

the market price of natural gas hedging contracts outstanding at year end would impact the

valuation of these contracts by EUR +/- 0.2 million (0.0). This impact would be in equity.

Credit risk

The Group is exposed to credit risks through commercial accounts receivables, as bank

account balances, deposits, short-term investments, other current receivables and

derivatives.

The Group’s treasury policy defines the credit rating requirements for the counterparties of

investment activities and derivative agreements as well as the related investment policy. The

Group seeks to minimize its counterparty risk by dealing solely with counterparties that are

financial institutions with a solid credit rating, as well as by spreading agreements among

them. Counterparty risk is regularly monitored.

The counterparty risk in treasury operations is due to the possibility that a contractual party

to a financing transaction might not necessarily be able to fulfill its contractual obligations.

Risks are mainly related to investment activities and the counterparty risks associated with

derivative contracts.

The Group Treasury approves the new banking relationships of subsidiaries. Financial

institution counterparties, used by the Group Treasury, have a credit rating of at least an

investment grade based on Standard & Poor’s credit rating information. The maximum risk

assignable to the Group’s financial institution counterparties on the balance sheet date

amounted to EUR 521,1 million (414.8). Kemira monitors its counterparty risk on a monthly

basis, by defining the maximum risk associated with each counterparty based on the market

value of receivables. Kemira has defined an approved limit for each financial institution.

No material changes related to the Group's credit risk were associated with financing

transactions in the year 2024 and these transactions did not result in credit losses during the

financial year.

Kemira has a group-wide credit policy related to commercial activities. According to the

policy, each customer has a predefined risk category and credit limit. These are constantly

monitored. Based on the customer evaluation, Kemira decides the applicable payment terms

to minimize credit risks. Pre-approved payment terms have been defined at the group level.

If necessary, securities and documentary credit, such as letters of credit, are applied. The

Group does not have any significant credit risk concentrations due to its extensive customer

base across the world. The credit losses related to trade receivables are described in Note

4.2.

In the USA, Kemira has an accounts receivable purchase facility worth USD 75 million,

enabling Group companies in the USA to sell certain accounts receivables to a counterparty.

The credit risk of the accounts receivables is transferred to the financial institutions and

95.5% of the receivables transferred are derecognized from the balance sheet. The amount of

outstanding receivables transferred, which also reflects the fair value of the receivables

before the transfer, was EUR 38.8 million (30.5) on December 31, 2024. The amounts

recognized in the balance sheet are EUR 1.8 million (4.6) in assets and EUR 1.0 million (0.9) in

liabilities.

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Liquidity and refinancing risks

Kemira's liquidity is secured with cash and cash equivalents, account overdrafts and a

revolving credit facility. At the end of 2024, the Group’s cash and cash equivalents stood at

EUR 519.2 million (402.5), consisting of cash in bank accounts of EUR 266.7 million (271.0) and

bank deposits of EUR 252.5 million (131.5). In addition, the Group has a revolving credit facility

of EUR 400 million linked to sustainability targets which will mature on April 17, 2026. At the

turn of the year 2024/2025, the revolving credit facility was undrawn.

The Group has a EUR 600 million domestic commercial paper program enabling it to issue

commercial papers with a maximum maturity of one year. At the end of 2024, the Group did

not have any commercial paper outstanding on the market (-).

Kemira manages its refinancing risk with a diversified loan portfolio. Long-term financing

consists of bonds and bilateral loan agreements with several financial institutions. In addition,

the Group had leasing liabilities, in accordance with the IFRS 16 standard, of EUR 132.2 million

(121.4) at the end of the year.

According to Group treasury policy, the Group must have committed credit facilities to cover

planned funding needs, the current portion of long term debt, commercial paper borrowings

and other uncommitted short-term loans in the next 12 months. The average maturity of

outstanding loans, excluding lease liabilities, may temporarily be under the 3-year minimum

target. The average maturity of debt, excluding lease liabilities, at the end of 2024 was 2.9

years (2.5).

LOAN REPAYMENTS


2024								Total drawn
Loan type, EUR million ¹⁾	Undrawn	2025	2026	2027	2028	2029	2030-	Total drawn
Loans from financial institutions	—	133.8	60.0	120.0	7.7	7.7	34.6	363.8
Bonds	—	—	—	—	200.0	—	—	200.0
Revolving credit facility	400.0	—	—	—	—	—	—	—
Lease liabilities	—	36.4	29.0	21.8	15.5	10.3	39.4	152.4
Commercial paper program	600.0	—	—	—	—	—	—	—
Other interest-bearing non-current liabilities	—	6.3	16.9	—	—	—	—	23.2
Other interest-bearing current liabilities	—	96.5	—	—	—	—	—	96.5
Estimated contractual interest payments ²⁾	—	14.2	12.4	9.1	4.1	1.8	3.8	45.3
Total interest-bearing liabilities	1,000.0	287.2	118.2	150.9	227.3	19.8	77.8	881.2

2023								Total drawn
Loan type, EUR million ¹⁾	Undrawn	2024	2025	2026	2027	2028	2029-	Total drawn
Loans from financial institutions	—	—	191.2	—	120.0	—	—	311.2
Bonds	—	200.0	—	—	—	200.0	—	400.0
Revolving credit facility	400.0	—	—	—	—	—	—	—
Lease liabilities	—	33.9	26.1	19.8	13.9	9.5	37.1	140.2
Commercial paper program	600.0	—	—	—	—	—	—	—
Other interest-bearing non-current liabilities	—	6.1	1.0	16.0	—	—	—	23.2
Other interest-bearing current liabilities	—	88.8	—	—	—	—	—	88.8
Estimated contractual interest payments ²⁾	—	23.6	13.8	10.2	6.9	2.0	—	56.5
Total interest-bearing liabilities	1,000.0	328.8	218.3	35.8	133.9	209.5	37.1	963.4

1) Loan structure presented by type and maturity, using contractual undiscounted payments.

2) Excluding estimated interest payments from lease liabilities.

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5.6 DERIVATIVE INSTRUMENTS


Nominal values, EUR million	Maturity structure					2024	2023
Nominal values, EUR million	2025	2026	2027	2028	2029	Total	Total
Currency derivatives
Forward contracts	589.2	—	—	—	—	589.2	789.6
Inflow	279.3	—	—	—	—	279.3	440.2
of which cash flow hedges	25.7	—	—	—	—	25.7	48.7
Outflow	309.9	—	—	—	—	309.9	349.3
of which cash flow hedges	101.4	—	—	—	—	101.4	217.1

Commodity derivatives
Commodity forward contracts (GWh)	231.4	80.4	24.3	10.9	—	347.0	637.8
of which cash flow hedges	231.4	80.4	24.3	10.9	—	347.0	637.8

The nominal values of the financial instruments do not necessarily correspond to the actual

cash flows between the counterparties and therefore individual items do not give a fair view

of the Group's risk position.


Fair values, EUR million	2024			2023
Fair values, EUR million	Positive	Negative	Net	Positive	Negative	Net
Currency derivatives
Forward contracts	4.8	-7.6	-2.8	8.4	-4.2	4.2
of which cash flow hedges	0.5	-4.3	-3.8	4.8	-0.1	4.7

Commodity derivatives
Commodity forward contracts ¹⁾	1.6	-3.0	-1.4	11.2	-3.5	7.7
of which cash flow hedges	1.6	-3.0	-1.4	11.2	-3.5	7.7

1) Includes the fair value of electricity forward contracts of EUR 0.1 million (1.6 ) and EUR -1.8 million (-2.1) maturing after

the year 2025. Commodity derivatives are mainly electricity derivatives.

The Group has ISDA or EFET Master netting agreements with the counterparties of derivative

contracts. They allow for the net settlement of outstanding market value within the scope of

the agreement in cases of non-payment, as defined in the agreement. At the end of the

reporting period, counterparty risk according to the master netting agreements was EUR 1.8

million (15.4) to Kemira and EUR 5.9 million (3.5) to counterparties.

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The Group's accounting policies

Derivatives

The fair values of currency, interest rate and commodity derivatives as well as publicly

traded shares are based on prices quoted in active markets on the balance sheet date. The

value of other financial instruments measured at fair value is determined on the basis of

valuation models, using information available in the financial markets.

All the derivatives are measured at their fair values on the balance sheet date. Changes in

the value of forward contracts are calculated by measuring the contracts against the

forward exchange rates on the balance sheet date and comparing them with the counter

values calculated through the forward exchange rates on the date of entry into the forward

contracts. The fair value of interest rate derivatives is determined using the market value of

similar instruments on the balance sheet date. Other derivatives are measured at the market

price on the balance sheet date.

Derivative assets maturing during the following 12 months are presented in the balance

sheet as part of line item Trade receivables and other receivables, whereas derivatives with

a maturity of over 12 months are posted to Other financial assets, under Non-current assets .

Derivative liabilities maturing in less than 12 months are presented in the balance sheet as

part of line item Trade payables and other liabilities, whereas the fair value of derivative

liabilities with a maturity beyond 12 months is posted under Non-current liabilities, in Other

financial liabilities.

Hedge accounting

Hedge accounting is applied according to IFRS 9. This refers to a method of accounting

aimed at allocating one or more hedging instruments in such a way that their fair value

offsets, in full or in part, the changes in the fair value or cash flows of the hedged item.

Hedged items must be highly probable. The Group applies hedge accounting for hedging

interest rate risk, currency risk, commodity risk and fair value, if the designated derivative

contracts meet the hedge accounting criteria.

Hedge effectiveness is monitored as required by IFRS 9. Effectiveness refers to the capacity

of a hedging instrument to offset changes in the fair value of the hedged item or the cash

flows from a hedged transaction, which are due to the realization of the risk being hedged. A

hedging relationship is considered to be highly effective when the change in the fair value of

the hedging instrument offsets changes in the cash flows attributable to the hedged items.

Hedge effectiveness is assessed prospectively. Hedge effectiveness testing is repeated on

each balance sheet date.

Hedge accounting is discontinued when the criteria for hedge accounting are no longer

fulfilled. Gains or losses recognized in other comprehensive income and presented under

equity are derecognized and transferred immediately in the income statement if the hedged

item is sold or falls due. However, gains or losses arising from changes in the fair value of

those derivatives not fulfilling the hedge accounting criteria are recognized directly in the

income statement.

At the inception of a hedge, the Group documents the existence of the economic

relationship of the hedged item and the hedging instrument, including the identification of

the hedging instrument, the hedged item or transaction, the nature of the risk being hedged,

the objectives of risk management and the strategy for undertaking hedging as well as the

description of how hedge effectiveness is assessed.

Cash flow hedging

Cash flow hedging is used to hedge against variability in cash flows attributable to a

particular risk associated with a recognized asset or liability in the balance sheet or a highly

probable forecast transaction. Currency, interest rate and commodity derivatives are used

as hedging instruments in cash flow hedging. Cash flow hedge accounting, as specified in

IFRS 9, is applied by the Group to selected hedging items only. Changes in the fair value of

derivative instruments associated with cash flow hedges are recognized in other

comprehensive income (including the tax effect) and presented under equity, providing that

they fulfill the criteria set for hedge accounting and are based on effective hedging. The

ineffective portion of the gain or loss on the hedging instrument is recognized under

financial items in the income statement. Derivatives not fulfilling the hedge accounting

criteria are recognized in financial items, through profit or loss.

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6. Group structure

6.1 RELATED PARTIES

Parties are considered to be related if one party has the ability to control or exercise

significant influence on the other party or if the parties exercise joint control in making

financial and operating decisions. The Group's related parties include the parent company,

subsidiaries, associates, joint-ventures and the Pension Fund Neliapila. Related parties also

include the members of the Board of Directors and the Group's Management Board, the CEO

and his Deputy and their immediate family members.

EMPLOYEE BENEFITS PAID TO THE CEO, THE INTERIM CEO, CEO'S

DEPUTY AND MEMBERS OF THE MANAGEMENT BOARD


EUR	Salaries and other benefits	Bonuses	Share- based payments ¹⁾	2024 Total	2023 Total
CEO Antti Salminen (since 12 February 2024) ²⁾	608,544	122,738	1,112,314	1,843,597	—
Interim CEO Petri Castrén (18 July 2023 - 11 February 2024) ²⁾	312,203	465,000	889,851	1,667,054	228,722
CEO Jari Rosendal (until 11 July 2023) ³⁾	—	—	—	—	4,375,054
CEO's Deputy Jukka Hakkila ⁴⁾	203,028	80,534	622,896	906,458	608,815
Other members of Management Board ⁵⁾ ⁶⁾	1,702,052	751,387	2,274,990	4,728,429	4,839,544
Total	2,825,827	1,419,659	4,900,051	9,145,538	10,052,134

1) Includes share and cash portions. Share-based incentive plans for the management and key personnel are disclosed in

Note 2.3. Share-based payments.

2) Includes all salaries and benefits paid during 2024.

3) The CEO Jari Rosendal left on sick leave on July 11, 2023 and died after a short illness on July 31, 2023. The final salary

and ongoing incentive plans 2020-2022, 2021-2023 and 2022-2024 were paid in cash to his death estate, in accordance

with the terms of the plans. These are included in the figures disclosed in 2023.

4) Jukka Hakkila acted as the CEO's Deputy from July 11 to July 17, 2023. No remuneration was paid to the CEO's Deputy

based on CEO substitution.

5) Other members of the Management Board on December 31, 2024 are CFO Petri Castrén, EVP Strategy Linus

Hildebrandt, CTO Matthew R. Pixton, EVP Operational Excellence Esa-Matti Puputti, President Segment Industry & Water

Tuija Pohjolainen-Hiltunen, Interim President Segment Pulp & Paper Harri Eronen and EVP Human Resources Eeva

Salonen. Other members of the Management Board who are employed by a Finnish Kemira company do not have any

supplementary pension arrangements in addition to their statutory pensions. The members of the Management Board

who are employed by a foreign Kemira company participate in the pension systems based on statutory pension

arrangements and market practices. The Kemira policy is that all new supplementary pension arrangements are defined

contribution pension plans.

6) Includes salaries and benefits paid related to Antti Salminen during 2023 and to Petri Castrén from 1 January 2023 to

17 July 2023.

Employment terms and conditions of the CEO

Remuneration of the CEO comprises a monthly salary, including opportunity for a car benefit,

a mobile phone benefit and performance-based incentives. The performance-based

incentives consist of an annual short-term bonus plan and a long-term share incentive plan.

The annual short-term bonus plan is based on terms approved by the Board of Directors and

the maximum bonus is 80% of the annual base salary. The long-term share incentive plan is

based on the terms of the plan. The maximum reward is determined as a number of shares

and a cash portion, intended to cover taxes and the tax-related costs arising from the reward.

The CEO belongs to the Finnish Employees’ Pension Act (TyEL) scheme, which provides

pension security based on years of service and earnings, as stipulated by law. No

supplementary pension has been offered to the CEO.

The mutual termination notice period is 6 months. The CEO is entitled to severance pay of 12

months’ salary, in addition to the salary earned during the notice period, in case the company

terminates his service.

The Board of Directors' emoluments

On March 20, 2024, the Annual General Meeting decided that the Board of Directors' annual

fee shall be paid as a combination of the company’s shares and cash, in such a manner that

40% of the annual fee is paid with Kemira shares owned by the company or, if this is not

possible, then with Kemira shares acquired from the securities market, and 60% is paid in

cash. On May 6, 2024, 9,940 shares owned by the company were distributed to the members

of the Board of Directors.

There are no special terms or conditions associated with owning the shares received as part

of the annual fee. The members of the Board of Directors are not eligible for any of Kemira

Oyj's short-term bonus plans, long-term share incentive plans or supplementary pension

plans.

Meeting fees are paid in cash and travel expenses are paid according to Kemira's travel policy.

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MEMBERS OF THE BOARD OF DIRECTORS


	Number of shares	Share value, EUR	Cash compensation, EUR ⁵⁾	2024 Total, EUR	2023 Total, EUR
Matti Kähkönen, Chair	2,323	50,383	84,517	134,900	128,200
Annika Paasikivi, Vice Chair	1,301	28,217	56,183	84,400	76,600
Wolfgang Büchele (until March 22, 2023)	—	—	—	—	5,400
Tina Sejersgård Fanø	1,003	21,754	46,346	68,100	64,000
Werner Fuhrmann	1,003	21,754	47,096	68,850	66,400
Timo Lappalainen	1,003	21,754	50,096	71,850	79,600
Fernanda Lopes Larsen (March 22, 2023-July 31, 2024)	1,003	21,754	11,967	33,720	64,000
Kristian Pullola	1,301	28,217	53,933	82,150	62,800
Mikael Staffas (since March 22, 2023)	1,003	21,754	47,996	69,750	59,200
Total	9,940	215,588	398,133	613,720	606,200

5) Includes both annual fees and meeting fees.

TRANSACTIONS CARRIED OUT WITH RELATED PARTIES


EUR million	2024	2023
Revenue
Associated companies	0.0	0.0

Leases, purchases of goods and services
Associated companies	31.2	31.6
Pension Fund Neliapila	0.7	0.8
Total	32.0	32.4

Receivables
Associated companies	7.1	5.7

Liabilities
Associated companies	5.6	7.2
Pension Fund Neliapila	0.0	0.7

Real estate owned by Pension Fund Neliapila is leased to the Group. The commitments for

these real estate leases are treated in accordance with IFRS 16 Leases.

Related parties include Pension Fund Neliapila, which is a separate legal entity. Neliapila

manages Kemira's voluntarily organized additional pension fund. It also manages part of the

pension assets of the Group's personnel in Finland. Supplementary benefits in Neliapila and

surplus return are disclosed in more detail in Note 4.5. Defined benefit pension plans and

employee benefits.

The amount of contingent liabilities on behalf of associates is presented in Note 7.1.

Commitments and contingent liabilities.

There were no loans granted to key management personnel at the end of 2024 or 2023, nor

were there contingency items or commitments on behalf of key management personnel.

Persons close to key management personnel do not have any significant business relationship

with the Group.

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6.2 THE GROUP'S SUBSIDIARIES AND INVESTMENTS IN ASSOCIATES

SUBSIDIARIES


	City	Country	Kemira Group's holding, %	Kemira Oyj's holding, %	Non- controlling interest's holding, %
Kemira Oyj (parent company)	Helsinki	Finland
Aliada Quimica de Portugal Lda.	Estarreja	Portugal	50.1	0.0	49.9
AS Kemivesi	Lehmja Küla	Estonia	100.0	100.0	0.0
Corporación Kemira Chemicals de Venezuela, C.A.	Caracas	Venezuela	100.0	0.0	0.0
Industry Park i Helsingborg Förvaltning AB	Helsingborg	Sweden	100.0	0.0	0.0
Kemifloc a.s.	Přerov	Czech Republic	51.0	0.0	49.0
Kemifloc Slovakia s.r.o.	Prešov	Slovakia	51.0	0.0	49.0
Kemipol Sp. z.o.o.	Police	Poland	51.0	0.0	49.0
Kemira (Asia) Co., Ltd.	Shanghai	China	100.0	0.0	0.0
Kemira (Jining) Environmental Engineering Co., Ltd.	Jining	China	100.0	0.0	0.0
Kemira (Malaysia) SDN.BHD	Kuala Lumpur	Malaysia	100.0	0.0	0.0
Kemira (Thailand) Co., Ltd.	Bangkok	Thailand	100.0	0.0	0.0
Kemira (Vietnam) Company Limited	Long Thanh	Vietnam	100.0	0.0	0.0
Kemira Argentina S.A.	Buenos Aires	Argentina	100.0	51.0	0.0
Kemira Australia Pty Ltd	Hallam	Australia	100.0	0.0	0.0
Kemira Cell Sp. z.o.o.	Ostroleka	Poland	55.0	55.0	45.0
Kemira Chemicals (India) Private Limited	New Delhi	India	100.0	0.0	0.0
Kemira Chemicals (Nanjing) Co., Ltd.	Nanjing	China	100.0	100.0	0.0
Kemira Chemicals (Shanghai) Co., Ltd.	Shanghai	China	100.0	100.0	0.0
Kemira Chemicals (UK) Ltd.	Bradford	United Kingdom	100.0	100.0	0.0


	City	Country	Kemira Group's holding, %	Kemira Oyj's holding, %	Non- controlling interest's holding, %
Kemira Chemicals (Yanzhou) Co., Ltd.	Yanzhou City	China	100.0	100.0	0.0
Kemira Chemicals AS	Gamle Fredrikstad	Norway	100.0	0.0	0.0
Kemira Chemicals Brasil Ltda.	São Paulo	Brazil	100.0	99.9	0.0
Kemira Chemicals Germany GmbH	Frankfurt am Main	Germany	100.0	100.0	0.0
Kemira Chemicals Korea Corporation	Gunsan-City	South Korea	100.0	100.0	0.0
Kemira Chemicals NV	Aartselaar	Belgium	100.0	0.0	0.0
Kemira Chemicals Oy	Helsinki	Finland	100.0	0.0	0.0
Kemira Chemicals Pte. Ltd.	Singapore	Singapore	100.0	0.0	0.0
Kemira Chemie Ges.mbH	Krems	Austria	100.0	100.0	0.0
Kemira Chile Comercial Limitada	Santiago	Chile	100.0	99.0	0.0
Kemira Chimie S.A.S.U.	Strasbourg	France	100.0	0.0	0.0
Kemira Europe Oy	Helsinki	Finland	100.0	100.0	0.0
Kemira Gdańsk Sp. z o.o.	Gdańsk	Poland	100.0	0.0	0.0
Kemira Hong Kong Company Limited	Hong Kong	China	100.0	100.0	0.0
Kemira Ibérica S.A.	Barcelona	Spain	100.0	0.0	0.0
Kemira International Finance B.V.	Rotterdam	Netherlands	100.0	100.0	0.0
Kemira Italy S.p.A.	San Giorgio di Nogaro	Italy	100.0	0.0	0.0
Kemira Japan Co., Ltd.	Tokyo	Japan	100.0	0.0	0.0
Kemira Kemi AB	Helsingborg	Sweden	100.0	0.0	0.0
Kemira Kopparverket KB	Helsingborg	Sweden	100.0	0.0	0.0
Kemira KTM d.o.o.	Ljubljana	Slovenia	100.0	100.0	0.0

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	City	Country	Kemira Group's holding, %	Kemira Oyj's holding, %	Non- controlling interest's holding, %
Kemira Purton Ltd.	Purton	United Kingdom	100.0	100.0	0.0
Kemira Research Center Shanghai Co., Ltd.	Shanghai	China	100.0	100.0	0.0
Kemira Rotterdam B.V.	Rotterdam	Netherlands	100.0	0.0	0.0
Kemira South Africa (Pty) Ltd.	Weltevreden park	South Africa	100.0	0.0	0.0
Kemira Świecie Sp. z.o.o.	Swiecie	Poland	100.0	100.0	0.0
Kemira Taiwan Corporation	Taipei	Taiwan	100.0	0.0	0.0
Kemira TC Wanfeng Chemicals (Yanzhou) Co., Ltd.	Yanzhou City	China	80.0	0.0	20.0
Kemira Uruguay S.A.	Fray Bentos	Uruguay	100.0	0.0	0.0
Kemira Water Danmark A/S	Copenhagen	Denmark	100.0	100.0	0.0
Kemira Water Solutions Canada Inc.	Varennes	Canada	100.0	0.0	0.0
Kemira Water Solutions, Inc.	Atlanta, GA	United States	100.0	0.0	0.0
Kemwater ProChemie s.r.o.	Bradlec	Czech Republic	95.1	0.0	4.9
PT Kemira Chemicals Indonesia	Pasuruan	Indonesia	99.8	99.8	0.2
PT Kemira Indonesia	Surabaya	Indonesia	100.0	76.2	0.0
SimAnalytics Oy	Helsinki	Finland	100.0	100.0	0.0

ASSOCIATES


	City	Country	Kemira Group's holding, %	Kemira Oyj's holding, %
Honkalahden Teollisuuslaituri Oy	Lappeenranta	Finland	50.0	0.0
Kemira Yongsan Chemicals Co., Ltd ¹⁾	Seoul	South Korea	35.0	0.0

1) This associate produces dry polyacrylamide and cationic monomer which are used for retention and drainage in

packaging and paper production as well as in wastewater treatment and in sludge dewatering.

INVESTMENTS IN ASSOCIATES


EUR million	2024	2023
Net book value on Jan 1	4.8	5.1
Additions	0.0	0.0
Decreases	0.0	0.0
Share of the profit (+) / loss (-) for the period	0.3	0.1
Exchange rate differences	-0.3	-0.3
Net book value on Dec 31	4.8	4.8

A summary of the associates' financial information is presented in the following table. The

presented figures equal the figures in the financial statements of each associate, not solely

the portion of Kemira Group.


EUR million	2024	2023
Assets	43.3	52.3
Liabilities	29.8	38.6
Revenue	32.5	33.4
Profit (+) / loss (-) for the period	1.2	0.6

Related party transactions carried out with associates are disclosed in Note 6.1. Related

parties.

NON-CONTROLLING INTERESTS


EUR million	2024	2023
Net book value on Jan 1	19.4	14.7
Dividends	-14.4	-8.3
Share of the profit for the period	13.2	12.2
Exchange rate differences	-0.1	0.8
Net book value on Dec 31	18.1	19.4

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CHANGES IN THE GROUP STRUCTURE

New subsidiaries acquired and established

• Kemira established a new company, Kemira Chemicals (India) Private Limited on August 8,

2024.

• Kemira acquired a new company, Kemira Purton Ltd on October 2, 2024.

Sale of subsidiaries

• Kemira sold Kemira Chemicals, Inc. company on February 2, 2024.

• Kemira sold JSC "Kemira HIM" company on September 30, 2024.

Changes in the holdings on group companies with the

• Kemira Chemicals Canada Inc. merged into Kemira Water Solutions Canada Inc. on

September 1, 2024.

• Kemira Germany GmbH merged into Kemira Chemicals Germany GmbH on January 1, 2024.

KEMIRA 2024 | FINANCIAL STATEMENTS | 165

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7. Off-balance sheet items

7.1 COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS


EUR million	2024	2023
Guarantees
On behalf of own commitments	114.8	109.5
On behalf of associates	10.9	11.7
On behalf of others	2.8	2.7

Other obligations
On behalf of own commitments	0.8	0.7

The most significant off-balance sheet investments commitments

On December 31, 2024 , the major amounts of contractual commitments for the acquisition of

property, plant and equipment were EUR 18.7 million (6.0), primarily for plant investments.

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

Finland, with a value of EUR 46.5 million.

Litigation

In November 2024, Kemira received a court ruling in Yanzhou, China, related to the way

Kemira's Joint Venture with Tiancheng Wanfeng Chemical Technology Co. (TCWF) is run. The

joint venture, where Kemira holds 80% and TCWF 20%, mainly produces AKD wax and its key

raw material, fatty acid chloride. The joint venture has been in operation in Shandong Province

in China since 2018. Kemira has filed an appeal to a higher court in China as it believes the

Yanzhou court ruling is without merit. There is a risk that the JV's operations might be

impacted, depending on the outcome of the decision by the higher court.

In addition to the above, 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.

The Group's accounting policies

Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose

existence will be confirmed by the occurrence of uncertain future events not wholly within

the control of the Group, or it may concern a present obligation which will most probably not

require an outflow of resources embodying economic benefits to settle the obligation or

when the amount of the obligation cannot be measured with sufficient reliability. Contingent

liabilities are disclosed in the notes.

7.2 EVENTS AFTER THE BALANCE SHEET DATE

The Group has no significant events after the balance sheet date.

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Kemira Oyj's income statement


Thousand EUR	Note	1.1.-31.12.2024	1.1.-31.12.2023

Revenue	2	1,950,291	2,030,416
Change in inventory of finished goods and in work in progress +/-	4	991	-60,079
Other operating income	3	475	3,262
Materials and services	4	-1,076,131	-1,077,936
Personnel expenses	5	-61,562	-68,544
Depreciation, amortization and impairments	6	-21,760	-23,738
Other operating expenses	7	-665,570	-631,371
Operating profit		126,734	172,010

Financial income and expenses	8	97,866	-24,926
Profit before appropriations and taxes		224,600	147,084

Appropriations	9	-8,134	-2,739
Income taxes	10	-32,856	-40,154
Profit for the financial year		183,610	104,191

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Kemira Oyj's balance sheet


Thousand EUR	Note	31.12.2024	31.12.2023

ASSETS

NON-CURRENT ASSETS
Intangible assets	11	41,328	51,537
Tangible assets	12	38,213	36,383
Investments	13
Holdings in Group undertakings		1,013,089	1,090,711
Receivables from Group companies		372,002	445,180
Other shares and holdings		98,339	98,339
Other investments		6,127	6,127
Total investments		1,489,557	1,640,357
Total non-current assets		1,569,098	1,728,277

CURRENT ASSETS
Inventories	14	143,985	141,366
Non-current receivables	15
Deferred tax assets		16,181	15,595
Loan receivables		400	400
Other receivables		132	1,608
Total non-current receivables		16,713	17,603
Current receivables	15	518,239	460,922
Money market investments	16	247,602	119,822
Cash and cash equivalents		217,925	215,787
Total current assets		1,144,464	955,499

Total assets		2,713,562	2,683,777


Thousand EUR	Note	31.12.2024	31.12.2023

EQUITY AND LIABILITIES

CAPITAL AND RESERVES	17
Share capital		221,762	221,762
Share premium account		257,878	257,878
Fair value reserve		-2,217	9,961
Unrestricted equity reserve		199,964	199,964
Retained earnings		410,456	409,525
Profit for the financial year		183,610	104,191
Total equity		1,271,452	1,203,281

APPROPRIATIONS	18	16,971	15,837

PROVISIONS	19	52,464	52,957

LIABILITIES
Non-current liabilities	20
Deferred tax liabilities		281	2,581
Other non-current liabilities		445,058	525,786
Total non-current liabilities		445,340	528,367
Current liabilities	21	927,335	883,335
Total liabilities		1,372,675	1,411,702

Total equity and liabilities		2,713,562	2,683,777

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Kemira Oyj's cash flow statement


Thousand EUR	2024	2023

CASH FLOWS FROM OPERATING ACTIVITIES
Net profit for the period	183,610	104,191
Adjustments for
Depreciation according to plan	21,760	23,738
Unrealized exchange differences (net)	-7,274	8,733
Financial income and expenses (+/-)	-97,866	24,926
Income taxes	32,856	40,154
Other adjustments (+/-)	-2,575	4,070
Operating profit before change in working capital	130,510	205,814

Change in working capital
Increase (-) / decrease (+) in non-interest-bearing current receivables	-58,066	18,283
Increase (-) / decrease (+) in inventories	-2,620	70,237
Increase (+) / decrease (-) in short-term interest-free debts	134,495	-46,073
Change in working capital	73,809	42,448

Cash generated from operations before financial items and taxes	204,320	248,261

Interest and other finance costs paid	-32,413	-33,531
Interest and other finance income received	92,233	78,136
Realized exchange differences (net)	985	11,591
Dividends received	44,580	39,621
Income taxes paid	-43,071	-59,530
Net cash from operating activities	266,633	284,549


Thousand EUR	2024	2023

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of subsidiary shares	-3,159	-6,476
Purchases of intangible assets	-6,477	-10,244
Purchases of tangible assets	-8,877	-7,987
Proceeds from sale of subsidiary shares	94,056	28,259
Proceeds from sale of investments	0	400
Proceeds from sale of tangible and intangible assets	1,866	0
Increase (-) / decrease (+) in loan receivables	40,392	-9,131
Net cash used in investing activities	117,800	-5,178

Cash flows before financing	384,433	279,371

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from non-current liabilities (+)	50,000	127
Repayment of non-current liabilities (-)	-200,000	0
Short-term financing, net increase (+) / decrease (-)	3,050	-35,730
Dividends paid	-104,702	-95,236
Group contribution paid	0	-9,000
Net cash used in financing activities	-251,652	-139,839

Net increase (+) / decrease (-) in cash and cash equivalents	132,781	139,532

Cash and cash equivalents on Dec 31	465,527	335,609
Exchange gains (+) / losses (-) on cash and cash equivalents	-2,863	1,612
Cash and cash equivalents on Jan 1	335,609	194,464
Net increase (+) / decrease (-) in cash and cash equivalents	132,781	139,532

KEMIRA 2024 | FINANCIAL STATEMENTS | 169

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Notes to the parent company financial statements

1. The parent company's accounting policies for the financial statements

BASIS OF PREPARATION

The parent company’s financial statements have been

prepared in compliance with the relevant acts and

regulations in force in Finland (FAS). Kemira Group’s financial

statements have been prepared in accordance with the

International Financial Reporting Standards (IFRS), and the

parent company applies the Group’s accounting policies

whenever it has been possible according to FAS.

VALUATION AND ALLOCATION PRINCIPLES

VALUATION OF NON-CURRENT ASSETS

Planned depreciation and any impairment losses have been

deducted from the acquisition cost of the intangible and

tangible assets entered in the balance sheet. The acquisition

cost includes the variable costs of acquisition and

manufacturing. Government grants received are recognized

as a deduction from the carrying amount of property, plant,

and equipment. Planned depreciation is calculated on a

straight-line basis over the estimated intangible and tangible

asset's useful life. Depreciation starts from the month of

commencement of use.

Depreciation periods:

Other intangible assets 5–10 years

Buildings and structures 20–40 years

Machinery and equipment 3–15 years

Shares of non-current assets are valued at their acquisition

cost or less impairment.

VALUATION OF INVENTORY

Inventories are stated at cost, at the lower of replacement

cost, or probable selling price. In addition to variable costs,

the cost of inventories includes a portion of the fixed costs of

acquisition and manufacturing. The acquisition cost of the

raw material inventory are determined using a weighted

average cost formula. The acquisition cost of finished goods

and work in progress include the proportion of production

overheads at normal capacity.

VALUATION OF FINANCIAL INSTRUMENTS

The hedging of financial risk of Kemira Group is concentrated

in Kemira Oyj, which enters into currency, interest rate, and

commodity derivatives with third parties. Changes in the fair

value of currency derivatives that are applicable for hedge

accounting in the Group, but not in the parent company (as

underlying hedged item are with group companies) are

entered in the profit and loss. Also, changes in the fair value

of other currency derivatives not qualifying for hedge

accounting in the Group, hedging commercial purchases, or

sales or financial items in foreign currencies are entered in

the profit and loss. Changes in the fair value of interest rate

derivatives are recorded as financial items in both hedge

accounting and non-hedge accounting. Commodity

derivatives consist of electricity and natural gas derivative

contracts.

The fair value of commodity derivatives hedging the parent

company's commodity purchases and qualifying for hedge

accounting is posted to the hedging reserve under equity as

well as the change in the fair value of currency derivatives

that qualify for hedge accounting in the parent company.

These currency derivatives are hedging estimated currency

flows in Kemira Oyj for the next 12-month period. When the

hedging instrument is maturing or the hedging relationship is

discontinued due to inefficiency, the hedging reserve is

adjusted by the value of the derivative by booking the value in

the Income Statement.

The valuation of Fair value derivative instruments is done

according to the Finnish Accounting Act Chapter 5 Section

2a.

The valuation methods of derivative instruments are

described in Notes 5.4 and 5.6 in the Consolidated Financial

Statements.

Defining the fair value of financial assets and liabilities is

described in Group Note 5.4. Financial Risk management

principles is illustrated in Group note 5.5. Hedge accounting

principles and valuation of derivative instrument are

described in Group note 5.6.

Reductions in the capital of other non-current loans as well

as loan transaction costs have been capitalized in a manner

allowed by the Finnish Accounting Act in the parent

company's financial statement. The non-expensed portion of

these expenses, EUR 1.1 million (1.6), is included in the

balance sheet.

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OBLIGATORY PROVISIONS

Obligatory provisions are recognized from pensions,

personnel-related costs, environmental, and restructuring

obligations.

REVENUE

Kemira Oyj's revenue consists mainly of revenues from the

sale of goods and services. Revenue also includes

intercompany service charges on a gross basis.

PENSION ARRANGEMENTS

The company’s statutory pensions are handled by pension

insurance companies and supplemental pensions mainly by

Kemira’s own pension fund. Pension costs consist of

payments to pension insurance companies and possible

contributions to the pension fund and are recognized in the

income statement.

SHARE-BASED INCENTIVE PLANS

The treatment of share-based plans is described in the

Group’s accounting policies. In the parent company, the cash

proportion of share-based incentive plans is recognized as an

expense in the performance year, and the share proportion is

recognized in the year the shares are given using the average

share price.

FOREIGN CURRENCY TRANSLATION

In day-to-day bookkeeping, foreign currency transactions are

translated into their functional currency at the exchange

rates quoted on the transaction date. In the Financial

Statements, foreign currency denominated receivables and

liabilities are measured at the exchange rates quoted on the

balance sheet date. Business-related exchange rate

differences and business related foreign currency exchange

rate hedges are treated as sales and purchase adjustments.

Any foreign exchange gains and losses related to financial

items and respective hedging instruments are booked into

financial income and expenses.

DEFERRED TAXES

Deferred tax liabilities or assets are recognized for temporary

differences between tax and financial statements using the

tax rate for the year following as determined on the balance

sheet date. The balance sheet includes the deferred tax

liability in its entirety and the deferred tax asset at the

estimated probable amount as assessed by the

management. The efficient part of changes in the value of

the electricity and currency derivatives qualifying for hedge

accounting is recorded as a fair value reserve less deferred

taxes.

LEASE

Lease payments are treated as rental expenses.

CASH FLOW STATEMENT

The parent company’s cash flow statement has been

prepared in accordance with the general guidelines on cash

flow by the Finnish Board of Accounting.

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2. Revenue


Thousand EUR	2024	2023
Revenue by segments
Pulp & Paper	803,954	887,894
Industry & Water	547,696	524,291
Intercompany revenue	598,640	618,231
Total	1,950,291	2,030,416

Distribution of revenue by geographical area as a percentage of total revenue
Finland, domicile of the parent company	22	25
Other Europe, Middle East and Africa	55	53
Americas	13	12
Asia Pacific	10	9
Total	100	100

3. Other operating income


Thousand EUR	2024	2023
Gains on the sale of property, plant and equipment	152	143
Insurance compensation received	53	2,481
Other income from operations	270	638
Total	475	3,262

4. Material and services


Thousand EUR	2024	2023
Change in stocks of finished goods and in work in progress	-991	60,079

Materials and services
Materials and supplies
Purchases during the financial year	1,074,630	1,055,338
Change in inventories (increase - / decrease +)	-7,153	13,628
External services	8,654	8,970
Total	1,076,131	1,077,936

Total materials and services	1,075,140	1,138,015

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5. Personnel expenses and number of personnel

Thousand EUR	2024	2023
Personnel costs
Wages and salaries	64,092	58,900
Pension expenses ¹⁾	-4,064	8,101
Other personnel expenses	1,534	1,544
Total	61,562	68,544

Thousand EUR	2024	2023
Management wages and salaries ²⁾
CEO	3,511	4,604
CEO's Deputy	906	609
Board of Directors	614	606
Total	5,031	5,819

Thousand EUR	2024	2023
Salaries and fees include bonuses and share-based payments
CEO	2,590	3,815
CEO's Deputy	703	411
Total	3,293	4,226

In 2022, salaries and wages totaled EUR 49,228 thousand.

1) In 2024, the pension expenses include a return of surplus of EUR 11.9 million from the Neliapila Pension Fund.

2) The salary paid to Kemira Oyj's CEO and CEO's Deputy include fringe benefits.

Other transactions between related parties are presented in Note 6.1 in the Notes to the

Consolidated Financial Statements.




Number of personnel on Dec 31	2024	2023
Pulp & Paper segment	107	101
Industry & Water segment	35	39
Other, of which	339	357
R&D and Technology	149	164
Total	481	497

Average number of personnel	506	500

6. Depreciation, amortization and impairments


Thousand EUR	2024	2023
Depreciation according to plan and impairment
Intangible rights	10,681	13,219
Impairment of intangible rights	536	55
Goodwill	3,634	3,626
Buildings and constructions	678	666
Machinery and equipment	6,188	6,154
Impairment of machinery and equipment	42	17
Total	21,760	23,738

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7. Other operating expenses


Thousand EUR	2024	2023
Rents	8,636	9,363
Intercompany tolling manufacturing charges	250,911	241,571
Other intercompany charges	161,546	166,582
Freights and delivery expenses	123,583	125,373
External services	22,377	22,082
Other operating expenses ¹⁾	98,516	66,399
Total	665,570	631,371

1) In 2024, the other operating expenses include a net decrease of EUR 322 thousand in the obligatory provisions (a

decrease of EUR 2,715 thousand in environmental expenses and an increase of EUR 223 thousand in restructuring

expenses and EUR 2,170 thousand in personnel expenses ). In 2023, the operating expenses included a net increase of

EUR 660 thousand in the obligatory provisions (a decrease of EUR 5,243 thousand in environmental expenses and an

increase of EUR 5,903 thousand in restructuring expenses). The other operating expenses also include EUR 28,798

thousand expenses related to the divestment of the Oil & Gas business.

AUDITOR'S FEES AND SERVICES


Thousand EUR	2024	2023
Audit fees	542	612
Tax services	61	37
Other services	139	116
Total	782	765

Ernst & Young Oy acts as the principal auditor for Kemira Oyj.

8. Finance income and expenses


Thousand EUR	2024	2023
Dividend income
From Group companies	44,553	39,621
From others	26	0
Total	44,580	39,621

Other interest and finance income
Interest income from Group companies	48,504	63,275
Interest income from others	14,266	7,953
Other finance income from Group companies ¹⁾	16,720	572
Other finance income from others ²⁾	3,055	0
Exchange gains from Group companies (net)	21,206	0
Exchange gains from others (net)	0	10,059
Total	103,751	81,859

Total finance income	148,330	121,481

Change in value on non-current assets
Group companies ³⁾	-10,376	-97,024
Total	-10,376	-97,024

Interest expenses and other finance expenses
Interest expenses to Group companies	-9,914	-6,767
Interest expenses to others	-22,179	-25,604
Other finance expenses to others	-2,001	-2,121
Exchange losses from Group companies (net)	0	-14,889
Exchange losses from others (net)	-5,995	0
Total	-40,088	-49,382

Total finance expenses	-50,464	-146,406

Total finance income and expenses	97,866	-24,926

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Thousand EUR	2024	2023
Exchange gains and losses
Realized	1,203	11,591
Unrealized	14,009	-16,422
Total	15,211	-4,830

1) Other finance income from Group companies includes profit of EUR 16,720 thousand from the sale of Kemira

Chemicals Canada Inc. shares to Kemira Europe Oy

2) Other finance income from others includes EUR 3,055 thousand from the sale of Kemira Chemicals, Inc

shares to Artek US Holding Corp.

3) In 2024, changes in the value of non-current assets in Group companies include write-downs of

subsidiary shares and in 2023, mainly Kemira Chemicals Inc.'s subsidiary shares related to the divestment

of the Oil & Gas business.

9. Appropriations


Thousand EUR	2024	2023
Change in accumulated depreciation difference (increase - / decrease +)
Intangible rights	215	382
Other intangible assets	0	-457
Goodwill	2	-6
Buildings and structures	-215	-268
Machinery and equipment	-1,136	-2,386
Other tangible assets	0	-3
Total	-1,134	-2,739

Group contribution
Group contributions received	0	7,000
Group contributions given	-7,000	-7,000
Total	-7,000	0

Total appropriations	-8,134	-2,739

10. Income taxes


Thousand EUR	2024	2023
Income taxes on ordinary activities	-30,267	-38,578
Income taxes for prior years	-238	69
Change in deferred taxes	-159	59
Other taxes and parafiscal charges	-2,192	-1,704
Total	-32,856	-40,154

KEMIRA 2024 | FINANCIAL STATEMENTS | 175

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

11. Intangible assets


2024, Thousand EUR	Intangible rights	Goodwill	Advance payments and construction in progress	Other intangible assets	Total
Acquisition cost on Jan 1	292,837	32,597	1,692	39,878	367,005
Additions	4,244	0	2,234	0	6,477
Decreases	-7,468	0	0	0	-7,468
Transfers	827	0	-827	0	0
Acquisition cost on Dec 31	290,440	32,597	3,099	39,878	366,014

Accumulated amortization on Jan 1	-257,531	-18,059	0	-39,878	-315,468
Accumulated amortization relating to decreases	5,096	0	0	0	5,096
Amortization during the financial year	-10,681	-3,634	0	0	-14,315
Accumulated amortization on Dec 31	-263,115	-21,693	0	-39,878	-324,686

Net book value on Dec 31	27,325	10,905	3,099	0	41,328

2023, Thousand EUR	Intangible rights	Goodwill	Advance payments and construction in progress	Other intangible assets	Total
Acquisition cost on Jan 1	279,833	32,364	9,334	39,878	361,408
Additions	9,100	234	910	0	10,244
Decreases	-4,648	0	0	0	-4,648
Transfers	8,552	0	-8,552	0	0
Acquisition cost on Dec 31	292,837	32,597	1,692	39,878	367,005

Accumulated amortization on Jan 1	-248,890	-14,433	0	-39,878	-303,200
Accumulated amortization relating to decreases	4,578	0	0	0	4,578
Amortization during the financial year	-13,219	-3,626	0	0	-16,845
Accumulated amortization on Dec 31	-257,531	-18,059	0	-39,878	-315,468

Net book value on Dec 31	35,306	14,539	1,692	0	51,537

KEMIRA 2024 | FINANCIAL STATEMENTS | 176

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

12. Tangible assets


2024, Thousand EUR	Land and water areas	Buildings and constructions	Machinery and equipment	Other tangible assets	Advance payments and construction in progress	Total
Acquisition cost on Jan 1	1,618	17,619	108,873	343	3,877	132,330
Additions	0	467	3,518	0	4,893	8,877
Decreases	0	0	-1,399	0	0	-1,399
Transfers	0	21	1,618	0	-1,639	0
Acquisition cost on Dec 31	1,618	18,107	112,609	343	7,131	139,808

Accumulated depreciation on Jan 1	-110	-8,165	-87,330	-341	0	-95,947
Accumulated depreciation relating to decreases	0	0	1,218	0	0	1,218
Depreciation during the financial year	0	-678	-6,188	0	0	-6,866
Accumulated depreciation on Dec 31	-110	-8,843	-92,300	-342	0	-101,595

Net book value at 31 Dec	1,509	9,263	20,309	2	7,131	38,213

2023, Thousand EUR	Land and water areas	Buildings and constructions	Machinery and equipment	Other tangible assets	Advance payments and construction in progress	Total
Acquisition cost on Jan 1	1,263	16,261	102,080	343	4,725	124,671
Additions	59	311	4,268	0	3,349	7,987
Decreases	0	0	-327	0	0	-327
Transfers	297	1,047	2,853	0	-4,196	0
Acquisition cost on Dec 31	1,618	17,619	108,873	343	3,877	132,330

Accumulated depreciation on Jan 1	-110	-7,499	-81,443	-341	0	-89,393
Accumulated depreciation relating to decreases	0	0	268	0	0	268
Depreciation during the financial year	0	-666	-6,154	0	0	-6,821
Accumulated depreciation on Dec 31	-110	-8,165	-87,330	-341	0	-95,947

Net book value on Dec 31	1,509	9,453	21,543	2	3,877	36,383

KEMIRA 2024 | FINANCIAL STATEMENTS | 177

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

13. Investments


2024, Thousand EUR	Holdings in Group companies	Receivables from Group companies	Other shares and holdings	Other receivables	Total
Net book value on Jan 1	1,090,711	445,180	98,339	6,127	1,640,357
Additions	7,035	0	0	0	7,035
Decreases	-74,281	-73,178	0	0	-147,459
Impairments	-10,376	0	0	0	-10,376
Net book value on Dec 31	1,013,089	372,002	98,339	6,127	1,489,557

2023, Thousand EUR	Holdings in Group companies	Receivables from Group companies	Other shares and holdings	Other receivables	Total
Net book value on Jan 1	1,049,503	552,996	99,609	6,127	1,708,236
Additions	165,492	0	0	0	165,492
Decreases	-31,767	-107,817	-270	0	-139,854
Impairments	-93,516	0	0	0	-93,516
Transfers	1,000	0	-1,000	0	0
Net book value on Dec 31	1,090,711	445,180	98,339	6,127	1,640,357

14. Inventories


Thousand EUR	2024	2023
Raw materials and consumables	50,379	43,225
Finished goods	88,455	88,525
Advance payments	5,152	9,615
Total	143,985	141,366

KEMIRA 2024 | FINANCIAL STATEMENTS | 178

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

15. Receivables


Thousand EUR	2024	2023
Non-current receivables

Receivables from others
Loan receivables	400	400
Other receivables	132	1,608
Total	532	2,008

Deferred tax assets
From appropriations	229	289
From reservations	9,759	9,823
From foreign currency and electricity hedging	835	91
From revaluations	4,285	4,285
From other deferred tax receivables	1,073	1,107
Total	16,181	15,595

Total non-current receivables	16,713	17,603

Current receivables

Receivables from Associated companies
Trade receivables	391	40
Total	391	40


Thousand EUR	2024	2023
Receivables from Group companies
Trade receivables	156,789	131,920
Loan receivables	143,326	93,415
Advances paid	18,066	18,836
Other current receivables	237,411	206,754
Prepayments and accrued income	8,266	25,604
Total	563,858	476,529

Receivables from others
Trade receivables	123,785	137,406
Loan receivables	500	0
Advances paid	112	133
Other current receivables	5,934	3,626
Prepayments and accrued income	12,941	42,924
Total	143,272	184,088

Total current receivables	707,522	660,657

Total receivables	724,234	678,261

Accrued income from others
Taxes	0	18,251
Hedging accruals	5,836	18,060
Prepaid expenses	4,989	4,285
Accrued income	446	1,486
Other	1,670	841
Total	12,941	42,924

KEMIRA 2024 | FINANCIAL STATEMENTS | 179

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

16. Money market investments


Thousand EUR	2024	2023
Money market investments
Book value	247,602	119,822
Fair value	248,000	120,000
Difference	-398	-178

Money market investments include deposits and commercial paper investments with maturity

less than three months.

KEMIRA 2024 | FINANCIAL STATEMENTS | 180

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

17. Capital and reserves


Thousand EUR	2024	2023
Restricted equity
Share capital on Jan 1	221,762	221,762
Share capital on Dec 31	221,762	221,762

Share premium account on Jan 1	257,878	257,878
Share premium account on Dec 31	257,878	257,878

Fair value reserve on Jan 1	9,961	56,764
Cash flow hedges	-12,178	-46,803
Fair value reserve on Dec 31	-2,217	9,961

Total restricted equity on Dec 31	477,422	489,600

Unrestricted equity
Unrestricted equity reserve on Jan 1	199,964	199,964
Unrestricted equity reserve on Dec 31	199,964	199,964

Retained earnings on Jan 1	513,716	502,839
Dividend distributions	-104,702	-95,236
Share-based incentive plan
Shares given	3,372	1,922
Shares returned	-1,931	0
Retained earnings on Dec 31	410,456	409,525

Profit for the financial period	183,610	104,191
Total unrestricted equity on Dec 31	794,029	713,680

Total capital and reserves on Dec 31	1,271,452	1,203,281

Total distributable funds on Dec 31	794,029	713,680

CHANGE IN TREASURY SHARES


Thousand	EUR	Number of shares
Acquisition value/number on Jan 1, 2024	11,596	1,723
Change	-1,298	-363
Acquisition value/number on Dec 31, 2024	10,299	1,359

18. Accumulated appropriations


Thousand EUR	2024	2023
Appropriations
Accumulated depreciation difference	16,971	15,837
Deferred tax liabilities on accumulated appropriations	3,394	3,167

KEMIRA 2024 | FINANCIAL STATEMENTS | 181

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

19. Obligatory provisions


Thousand EUR	2024	2023
Non-current provisions
Pension provisions	5,365	5,536
Environmental provisions	9,960	9,835
Personnel related provisions	127	0
Restructuring provisions	24,943	24,390
Total non-current provisions	40,396	39,762

Current provisions
Environmental provisions	2,383	4,890
Personnel related provisions	2,042	0
Restructuring provisions	7,643	8,305
Total current provisions	12,069	13,195

Total provisions	52,464	52,957

Change in obligatory provisions
Obligatory provisions on Jan 1	52,957	52,230
Utilised during the year	-12,332	-12,031
Cancellation of unused reservations	-362	0
Increase during the year	12,202	12,758
Obligatory provisions on Dec 31	52,464	52,957

Environmental risks and liabilities are disclosed in Note 4.6 in the Notes to the Consolidated

Financial Statements.

20. Non-current liabilities


Thousand EUR	2024	2023
Loans from financial institutions	230,000	310,887
Corporate bonds	198,895	198,850
Other non-current liabilities	16,163	16,049
Total	445,058	525,786

Maturity later than five years
Other liabilities	16,037	16,037
Total	16,037	16,037

Deferred tax liabilities
From foreign currency and electricity hedging	281	2,581
Total	281	2,581

Total non-current liabilities	445,340	528,367

KEMIRA 2024 | FINANCIAL STATEMENTS | 182

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

21. Current liabilities


Thousand EUR	2024	2023
Liabilities to Group companies
Loan liabilities	11,488	8,438
Trade payables	219,300	155,944
Other liabilities	363,798	285,937
Accrued expenses	6,559	7,663
Total	601,145	457,981

Liabilities to others
Corporate Bonds	0	199,597
Loans from financial institutions	133,488	0
Prepayments received	437	1,064
Trade payables	94,762	95,134
Other liabilities	9,117	9,235
Accrued expenses	88,387	120,323
Total	326,190	425,354

Total current liabilities	927,335	883,335

Accrued expenses and deferred income
Personnel expenses	26,659	22,727
Interest expenses and exchange rate differences	12,127	10,958
Cost accruals	32,869	44,827
Income tax accruals	9,953	38,578
Other	6,780	3,233
Total	88,387	120,323

22. Derivatives


	2024	2023
Nominal values, thousand EUR	Total	Total
Currency derivatives
Forward contracts	612,726	812,819
of which cash flow hedges	127,134	110,463
Commodity derivatives
Commodity forward contracts (MWh) ¹⁾	230,656	525,989
of which cash flow hedges	230,656	525,989

1) Mainly electricity forward contracts.


	2024
Fair values, thousand EUR	Positive	Negative	Net
Currency derivatives
Forward contracts	5,369	7,600	-2,231
of which cash flow hedges	495	4,331	-3,836
Commodity derivatives
Commodity forward contracts ¹⁾	1,567	161	1,406
of which cash flow hedges	1,567	161	1,406

1) Includes fair value of commodity forward contracts of EUR 6 thousand maturing after the year 2024 (EUR 1,597

thousand)


	2023
Fair values, thousand EUR	Positive	Negative	Net
Currency derivatives
Forward contracts	8,571	4,258	4,313
of which cash flow hedges	2,190	136	2,054
Commodity derivatives
Commodity forward contracts	10,836	533	10,303
of which cash flow hedges	10,836	533	10,303

KEMIRA 2024 | FINANCIAL STATEMENTS | 183

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

23. Collateral and contingent liabilities


Thousand EUR	2024	2023
Given guarantees
On behalf of own commitments
Business related delivery-, environmental and other guarantees	18,964	35,482
On behalf of companies belonging to the same Group
Business and financing guarantees	523,933	527,802
On behalf of associated companies
Business and financing guarantees	10,915	11,718
On behalf of others
Guarantees	2,582	2,436
Rent liabilities
Maturity within one year	2,923	2,767
Maturity after one year	3,566	3,765
Total	6,489	6,532

Leasing liabilities
Maturity within one year	2,513	1,870
Maturity after one year	4,528	3,551
Total	7,041	5,421

Financial Liabilities

The company is obliged to review the VAT deductions it has made for real estate investments

completed in 2016–2024 if the taxable use of the properties decreases during the review

period. The maximum liability is EUR 1.2 million and the last review year is 2033.

24. Related party transactions


Thousand EUR	2024	2023
Related party notes required by the Finnish Companies Act
The most significant Group companies with which the company has loans
Kemira Water Solutions Inc.	173,041	162,690
Kemira Chemicals Oy	67,400	77,400
Kemira Chemicals (Nanjing) Co.,Ltd.	59,679	56,109
Other Group companies	215,208	242,396
Total	515,327	538,594

Kemira Oyj acts as principal in the EMEA and APAC businesses. The most significant related

party transactions on the balance sheet are Group companies' loans. For the most part, the

loan is issued in the accounting currency of the subsidiary, while the parent company hedges

the currency risk. The margins added to loan reference rates are market-based.

The Group uses consolidated bank account systems as a cash management tool. When

involved, the parent company acts as the holder of the consolidated accounts. Subsidiaries

are always entitled to the assets in their consolidated assets account, and consolidated

account operations do not adversely affect the continuity of subsidiaries' operations.

KEMIRA 2024 | FINANCIAL STATEMENTS | 184

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

25. Subsidiaries


	Group holding, %	Kemira Oyj holding, %
AS Kemivesi	100.00	100.00
Kemira Argentina S.A.	100.00	51.00
Kemira Cell Sp. z.o.o.	55.00	55.00
Kemira Chemicals (Nanjing) Co., Ltd.	100.00	100.00
Kemira Chemicals (Shanghai) Co., Ltd.	100.00	100.00
Kemira Chemicals (UK) Ltd.	100.00	100.00
Kemira Chemicals (Yanzhou) Co., Ltd.	100.00	100.00
Kemira Chemicals Germany GmbH	100.00	100.00
Kemira Chemicals Korea Corporation	100.00	100.00
Kemira Chemie GesmbH	100.00	100.00
Kemira Chile Comercial Limitada	100.00	99.00
Kemira Europe Oy	100.00	100.00
Kemira Hong Kong Company Limited	100.00	100.00
Kemira International Finance B.V.	100.00	100.00
Kemira KTM d.o.o.	100.00	100.00
Kemira Purton Ltd	100.00	100.00
Kemira Świecie Sp. z o.o.	100.00	100.00
Kemira Water Danmark A/S	100.00	100.00
PT Kemira Chemicals Indonesia	99.8	99.8
PT Kemira Indonesia	100.00	76.2
SimAnalytics Oy	100.00	100.00

Changes in the group structure

Kemira Oyj acquired 100% of the share capital of Purton Carbons Ltd. (now Kemira Purton

Ltd.) in the UK in October 2, 2024.

Kemira Oy acquired 35.2% of the shares of Kemira Argentina S.A. on September 24, 2024.

Kemira Germany GmbH was merged with Kemira Chemicals Germany GmbH on January 1,

2024.

Kemira Oyj sold the shares of Kemira Chemicals Canada Inc. to Kemira Europe Oy on July 1,

2024.

Kemira Oyj sold the shares of Kemira Chemicals, Inc shares to Artek US Holding Corp on

February 2, 2024.

The Group's subsidiaries and investment in associates are presented in Note 6.2. in the

Consolidated Financial Statements.

KEMIRA 2024 | FINANCIAL STATEMENTS | 185

BOARD'S PROPOSAL FOR PROFIT DISTRIBUTION AND SIGNATURES | PART OF THE AUDITED FINANCIAL STATEMENTS 2024

Kemira Oyj’s Board of Directors’ proposal to the Annual General Meeting for the distribution of

distributable funds and signing of the Financial Statements and Board of Directors’ Review

On December 31, 2024 , Kemira Oyj’s distributable funds are EUR 794,029,352 of which the net

profit for the period amounts to EUR 183,609,785.

The Board of Directors proposes for the Annual General Meeting to be held on March 20 , 2025

and that a dividend of EUR 0.74 per share be distributed. No dividend will be paid on the own

shares held by the company as treasury shares on the dividend record date.

On the date of this proposal for the distribution of profits, a total of 153,983,209 shares are

held outside the company and the total dividends paid would amount to EUR 113,947,575.

Distributable funds of EUR 680,081,777 are to be retained as equity.

There have been no material changes in the company’s financial position since December 31,

2024 . The liquidity of the company remains good and the proposed dividend payment does

not risk the solvency of the company.

The financial statements have been prepared in accordance with applicable accounting laws

and regulations and give a true and fair view of the assets, liabilities, financial position and

profit or loss of the parent company and of the companies included in its consolidated

financial statements.

We also confirm that the Board of Directors' Review includes:

– A true and fair view of the development of the business and the financial result,

– A description of the most significant risks and uncertainties and other aspects of the

company's condition, and

– A sustainability report prepared in accordance with the reporting standards referred to in

Chapter 7 of the Accounting Act and Article 8 of the Taxonomy Regulation.

Helsinki, February 10, 2025



Matti Kähkönen	Annika Paasikivi	Tina Sejersgård Fanø
Chair	Vice Chair

Werner Fuhrmann	Timo Lappalainen	Kristian Pullola

Mikael Staffas	Antti Salminen
	CEO

KEMIRA 2024 | FINANCIAL STATEMENTS | 186

AUDITOR'S REPORT

Auditor's report (Translation of the Finnish original)

To the Annual General Meeting of Kemira Oyj


Ernst & Young Oy Korkeavuorenkatu 32-34 FI- 00130 Helsinki Finland	Tel. +358 207 280 190 www.ey.com/fi Business ID 2204039-6 domicile Helsinki

Report on the Audit of Financial Statement

OPINION

We have audited the financial statements of Kemira Oyj (business identity code 0109823-0)

for the year ended 31 December 2024. The financial statements comprise the consolidated

balance sheet, income statement, statement of comprehensive income, statement of

changes in equity, statement of cash flows and notes, including material accounting policy

information, as well as the parent company’s balance sheet, income statement, statement of

cash flows and notes.

In our opinion

• the consolidated financial statements give a true and fair view of the group’s financial

position, financial performance and cash flows in accordance with IFRS Accounting

Standards as adopted by the EU.

• the financial statements give a true and fair view of the parent company’s financial

performance and financial position in accordance with the laws and regulations governing

the preparation of financial statements in Finland and comply with statutory requirements.

Our opinion is consistent with the additional report submitted to the Audit Committee.

BASIS FOR OPINION

We conducted our audit in accordance with good auditing practice in Finland. Our

responsibilities under good auditing practice are further described in the Auditor’s

Responsibilities for the Audit of Financial Statements section of our report.

We are independent of the parent company and of the group companies in accordance with

the ethical requirements that are applicable in Finland and are relevant to our audit, and we

have fulfilled our other ethical responsibilities in accordance with these requirements.

In our best knowledge and understanding, the non-audit services that we have provided to the

parent company and group companies are in compliance with laws and regulations applicable

in Finland regarding these services, and we have not provided any prohibited non-audit

services referred to in Article 5 (1) of regulation (EU) 537/2014. The non-audit services that we

have provided have been disclosed in note 2.2 to the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the financial statements of the current period. These matters were

addressed in the context of our audit of the financial statements as a whole, and in forming

our opinion thereon, and we do not provide a separate opinion on these matters.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of

the financial statements section of our report, including in relation to these matters.

Accordingly, our audit included the performance of procedures designed to respond to our

assessment of the risks of material misstatement of the financial statements. The results of

our audit procedures, including the procedures performed to address the matters below,

provide the basis for our audit opinion on the accompanying financial statements.

We have also addressed the risk of management override of internal controls. This includes

consideration of whether there was evidence of management bias that represented a risk of

material misstatement due to fraud.

KEMIRA 2024 | FINANCIAL STATEMENTS | 187

AUDITOR'S REPORT


Key audit matter	How our audit addressed the Key Audit Matter
Valuation of goodwill The accounting principles and disclosures concerning goodwill are disclosed in Note 3.1. Valuation of goodwill was a key audit matter because • the assessment process is judgmental, • it is based on assumptions relating to market or economic conditions extending to the future, and • because of the significance of the goodwill to the financial statements. As of balance sheet date 31 December 2024, the value of goodwill amounted to 491 million euro representing 15 % of the total assets and 27 % of the total equity. The valuation of goodwill is based on management’s estimate about the value-in-use calculations of the cash generating units. There are number of underlying assumptions used to determine the value-in-use, including the revenue growth, EBITDA and discount rate applied on net cash-flows. Estimated value-in-use may vary significantly when the underlying assumptions are changed and the changes in above-mentioned individual assumptions may result in an impairment of goodwill.	Our audit procedures regarding the valuation of goodwill included involving EY valuation specialists to assist us in evaluating methodologies, impairment calculations and underlying assumptions applied by the management in the impairment testing. In evaluation of methodologies, we compared the principles applied by the management in the impairment tests to the requirements set in IAS 36 Impairment of assets standard and ensured the mathematical accuracy of the impairment calculations. The key assumptions applied by the management in impairment tests were compared to • approved budgets and long-term forecasts, • information available in external sources, as well as • our independently calculated industry averages such as weighted average cost of capital used in discounting the cashflows. In addition, we compared the sum of discounted cash flows in impairment tests to Kemira’s market capitalization. We also assessed the sufficiency and appropriateness of the disclosures given in respect of goodwill and its sensitivity.


Key audit matter	How our audit addressed the Key Audit Matter
Fair value measurement of other shares The accounting principles and disclosures concerning other shares are disclosed in Note 3.5. Fair value measurement of other shares was a key audit matter because • the value of PVO / TVO shares is material to the financial statements, and because • the fair value assessment process requires significant management judgment. As of balance sheet date 31 December 2024, the value of PVO / TVO shares included in other shares amounted to 269 million euro representing 8 % of the total assets and 15 % of the total equity. PVO / TVO shares represent majority of the balance sheet value of other shares. In determining the fair value of PVO / TVO shares, the management must make among other things an assessment regarding • future electricity production cost for PVO and TVO, • future electricity market prices applicable for Finland, and • discount rate applied on discounting the cashflows. Fair values of PVO and TVO shares may vary significantly when above-mentioned assumptions are changed. Fair value measurement of other shares was determined to be a key audit matter and a significant risk of material misstatement referred to in EU Regulation No 537/2014, point (c) of Article 10 (2).	Our audit procedures regarding the fair values of other shares to address the risk of material misstatement included involving EY valuation specialists to assist us in evaluating appropriateness of methodologies, fair value calculations and underlying assumptions applied by the management. The key assumptions made by the management were compared to • estimates of future electricity production costs available on external sources, • estimates of future electricity market prices in Finland available on external sources, and • our independently calculated discount rate applicable for discounting of expected cashflows. In addition, we assessed the overall reasonableness of management’s judgments. We also assessed the sufficiency and appropriateness of the disclosures regarding the other shares.

KEMIRA 2024 | FINANCIAL STATEMENTS | 188

AUDITOR'S REPORT

RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE

MANAGING DIRECTOR FOR THE FINANCIAL STATEMENTS

The Board of Directors and the Managing Director are responsible for the preparation of

consolidated financial statements that give a true and fair view in accordance with IFRS

Accounting Standards as adopted by the EU, and of financial statements that give a true and

fair view in accordance with the laws and regulations governing the preparation of financial

statements in Finland and comply with statutory requirements. The Board of Directors and

the Managing Director are also responsible for such internal control as they determine is

necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are

responsible for assessing the parent company’s and the group’s ability to continue as going

concern, disclosing, as applicable, matters relating to going concern and using the going

concern basis of accounting. The financial statements are prepared using the going concern

basis of accounting unless there is an intention to liquidate the parent company or the group

or cease operations, or there is no realistic alternative but to do so.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF FINANCIAL

STATEMENTS

Our objectives are to obtain reasonable assurance on whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an

auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance with good auditing practice will

always detect a material misstatement when it exists. Misstatements can arise from fraud or

error and are considered material if, individually or in aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of the financial

statements.

As part of an audit in accordance with good auditing practice, we exercise professional

judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether

due to fraud or error, design and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for

one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the parent company’s or the group’s internal

control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s

use of the going concern basis of accounting and based on the audit evidence obtained,

whether a material uncertainty exists related to events or conditions that may cast

significant doubt on the parent company’s or the group’s ability to continue as a going

concern. If we conclude that a material uncertainty exists, we are required to draw

attention in our auditor’s report to the related disclosures in the financial statements or, if

such disclosures are inadequate, to modify our opinion. Our conclusions are based on the

audit evidence obtained up to the date of our auditor’s report. However, future events or

conditions may cause the parent company or the group to cease to continue as a going

concern.

• Evaluate the overall presentation, structure and content of the financial statements,

including the disclosures, and whether the financial statements represent the underlying

transactions and events so that the financial statements give a true and fair view.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding

the financial information of the entities or business units within the group as a basis for

forming an opinion on the group financial statements. We are responsible for the direction,

supervision and review of the audit work performed for purposes of the group audit. We

remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant

deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with

relevant ethical requirements regarding independence, and communicate with them all

relationships and other matters that may reasonably be thought to bear on our

independence, and where applicable, related safeguards.

KEMIRA 2024 | FINANCIAL STATEMENTS | 189

AUDITOR'S REPORT

From the matters communicated with those charged with governance, we determine those

matters that were of most significance in the audit of the financial statements of the current

period and are therefore the key audit matters. We describe these matters in our auditor’s

report unless law or regulation precludes public disclosure about the matter or when, in

extremely rare circumstances, we determine that a matter should not be communicated in

our report because the adverse consequences of doing so would reasonably be expected to

outweigh the public interest benefits of such communication.

Other reporting requirements

INFORMATION ON OUR AUDIT ENGAGEMENT

We were first appointed as auditors by the Annual General Meeting on 21 March 2019 and our

appointment represents a total period of uninterrupted engagement of six years.

OTHER INFORMATION

The Board of Directors and the Managing Director are responsible for the other information.

The other information comprises the report of the Board of Directors and the information

included in the Annual Report, but does not include the financial statements and our auditor’s

report thereon. We have obtained the report of the Board of Directors prior to the date of this

auditor’s report, and the Annual Report is expected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other

information identified above and, in doing so, consider whether the other information is

materially inconsistent with the financial statements or our knowledge obtained in the audit,

or otherwise appears to be materially misstated. With respect to report of the Board of

Directors, our responsibility also includes considering whether the report of the Board of

Directors has been prepared in compliance with the applicable provisions, excluding the

sustainability report information on which there are provisions in Chapter 7 of the Accounting

Act and in the sustainability reporting standards.

In our opinion, the information in the report of the Board of Directors is consistent with the

information in the financial statements and the report of the Board of Directors has been

prepared in compliance with the applicable provisions. Our opinion does not cover the

sustainability report information on which there are provisions in Chapter 7 of the Accounting

Act and in the sustainability reporting standards.

If, based on the work we have performed on the other information that we obtained prior to

the date of this auditor’s report, we conclude that there is a material misstatement of this

other information, we are required to report that fact. We have nothing to report in this

regard.

OTHER OPINIONS ON ASSIGNMENT OF THE BOARD OF DIRECTORS

We support that the financial statements should be adopted. The proposal by the Board of

Directors regarding the use of the profit shown on the balance sheet is in compliance with the

Limited Liability Companies Act. We support that the Board of Directors of the parent

company and the Chief Executive Officer should be discharged from liability for the financial

period audited by us.

Helsinki, 10 February 2025

Ernst & Young Oy

Authorized Public Accountant Firm

Mikko Rytilahti

Authorized Public Accountant

KEMIRA 2024 | FINANCIAL STATEMENTS | 190

ASSURANCE REPORT

Assurance Report on

the Sustainability statement


Ernst & Young Oy Korkeavuorenkatu 32-34 FI- 00130 Helsinki Finland	Tel. +358 207 280 190 www.ey.com/fi Business ID 2204039-6, domicile Helsinki

(Translation of the Finnish original)

TO THE ANNUAL GENERAL MEETING OF KEMIRA OYJ

We have performed a limited assurance engagement on the group sustainability statement of

Kemira Oyj (0109823-0) that is referred to in Chapter 7 of the Accounting Act and that is

included in the report of the Board of Directors for the financial year 1.1.–31.12. 2024.

OPINION

Based on the procedures we have performed and the evidence we have obtained, nothing has

come to our attention that causes us to believe that the group sustainability statement does

not comply, in all material respects, with

1) the requirements laid down in Chapter 7 of the Accounting Act and the sustainability

reporting standards (ESRS);

2) the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European

Parliament and of the Council on the establishment of a framework to facilitate

sustainable investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).

Point 1 above also contains the process in which Kemira Oyj has identified the information for

reporting in accordance with the sustainability reporting standards (double materiality

assessment) and the tagging of information as referred to in Chapter 7, Section 22 of the

Accounting Act.

Our opinion does not cover the tagging of the group sustainability statement with digital XBRL

sustainability tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the

Accounting Act, because sustainability reporting companies have not had the possibility to

comply with that provision in the absence of the ESEF regulation or other European Union

legislation.

BASIS FOR OPINION

We performed the assurance of the group sustainability statement as a limited assurance

engagement in compliance with good assurance practice in Finland and with the International

Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other

than Audits or Reviews of Historical Financial Information.

Our responsibilities under this standard are further described in the Responsibilities of the

Group Sustainability Auditor section of our report.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

OTHER MATTER

We draw attention to the fact that the group sustainability statement of Kemira Oyj that is

referred to in Chapter 7 of the Accounting Act has been prepared and assurance has been

provided for it for the first time for the financial year 1.1.–31.12.2024. Our opinion does not

cover the comparative information that has been presented in the group sustainability

statement. Our opinion is not modified in respect of this matter.

GROUP SUSTAINABILITY AUDITOR'S INDEPENDENCE AND QUALITY

MANAGEMENT

We are independent of the parent company and of the group companies in accordance with

the ethical requirements that are applicable in Finland and are relevant to our engagement,

and we have fulfilled our other ethical responsibilities in accordance with these requirements.

The group sustainability auditor applies International Standard on Quality Management ISQM

1, which requires the sustainability audit firm to design, implement and operate a system of

quality management including policies or procedures regarding compliance with ethical

requirements, professional standards and applicable legal and regulatory requirements .

KEMIRA 2024 | FINANCIAL STATEMENTS | 191

ASSURANCE REPORT

RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE

MANAGING DIRECTOR

The Board of Directors and the Managing Director of Kemira Oyj are responsible for:

• the group sustainability statement and for its preparation and presentation in accordance

with the provisions of Chapter 7 of the Accounting Act, including the process that has been

defined in the sustainability reporting standards and in which the information for reporting

in accordance with the sustainability reporting standards has been identified as well as the

tagging of information as referred to in Chapter 7, Section 22 of the Accounting Act and

• the compliance of the group sustainability statement with the requirements laid down in

Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on

the establishment of a framework to facilitate sustainable investment, and amending

Regulation (EU) 2019/2088;

• such internal control as the Board of Directors and the Managing Director determine is

necessary to enable the preparation of a group sustainability statement that is free from

material misstatement, whether due to fraud or error.

INHERENT LIMITATIONS IN THE PREPARATION OF A

SUSTAINABILITY STATEMENT

The preparation of the group sustainability statement requires a materiality assessment from

the company in order to identify relevant disclosures. This significantly involves management

judgment and choices. Group Sustainability reporting is also characterized by estimates and

assumptions, as well as measurement and estimation uncertainty.

The determination of greenhouse gases is subject to inherent uncertainty due to the

incomplete scientific data used to determine the emission factors and the numerical values

needed to combine emissions of different gases.

In addition, when reporting forward-looking information, the company must make

assumptions about possible future events and disclose the company's possible future actions

in relation to these events. The actual outcome may be different because predicted events do

not always occur as expected.

RESPONSIBILITIES OF THE GROUP SUSTAINABILITY AUDITOR

Our responsibility is to perform an assurance engagement to obtain limited assurance about

whether the group sustainability statement is free from material misstatement, whether due

to fraud or error, and to issue a limited assurance report that includes our opinion.

Misstatements can arise from fraud or error and are considered material if, individually or in

the aggregate, they could reasonably be expected to influence the decisions of users taken

on the basis of the group sustainability statement.

Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised)

requires that we exercise professional judgment and maintain professional skepticism

throughout the engagement. We also:

• Identify and assess the risks of material misstatement of the group sustainability

statement, whether due to fraud or error, and obtain an understanding of internal control

relevant to the engagement in order to design assurance procedures that are appropriate

in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the parent company’s or the group’s internal control.

• Design and perform assurance procedures responsive to those risks to obtain evidence

that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

DESCRIPTION OF THE PROCEDURES THAT HAVE BEEN PERFORMED

The procedures performed in a limited assurance engagement vary in nature and timing from,

and are less in extent than for, a reasonable assurance engagement. The nature, timing and

extent of assurance procedures selected depend on professional judgment, including the

assessment of risks of material misstatement, whether due to fraud or error. Consequently,

the level of assurance obtained in a limited assurance engagement is substantially lower than

the assurance that would have been obtained had a reasonable assurance engagement been

performed.

Our procedures included for ex. the following:

• We have interviewed the key persons responsible for collecting and reporting the

information included in the group sustainability statement.

• Through interviews, we gained an understanding of the group’s control environment

related to the group sustainability reporting process.

KEMIRA 2024 | FINANCIAL STATEMENTS | 192

ASSURANCE REPORT

• We evaluated the implementation of the company's double materiality assessment process

against the requirements of ESRS standards and the compliance of the information

provided for the double materiality assessment with ESRS standards.

• We assessed whether the group sustainability statement in material respect meets the

requirements of ESRS standards for material sustainability topics:

– We have tested the accuracy of the information presented in the group sustainability

statement by comparing the information on a sample basis with supporting company

documentation.

– We have on a sample basis performed analytical assurance procedures and related

inquiries, recalculation and inspected documentation, as well as tested data

aggregation to assess the accuracy of the group sustainability statement.

• We gained an understanding of the process by which a company has defined taxonomy-

eligible and taxonomy-aligned economic activities and evaluate the regulatory compliance

of the information provided.

Helsinki 10.2.2025

Ernst & Young Oy

Authorized Sustainability Audit Firm

Mikko Rytilahti

Authorized Sustainability Auditor

KEMIRA 2024 | FINANCIAL STATEMENTS | 193

ESEF FINANCIAL STATEMENT REPORT

ESEF Financial Statement Report


Ernst & Young Oy Korkeavuorenkatu 32-34 FI- 00130 Helsinki Finland	Tel. +358 207 280 190 www.ey.com/fi Business ID 2204039-6, domicile Helsinki

(Translation of the Finnish original)

Independent Auditor's Report on the ESEF

Consolidated Financial Statements of Kemira Oyj

TO THE BOARD OF DIRECTORS OF KEMIRA OYJ

We have performed a reasonable assurance engagement on the financial statements

74370031Y7RK5H88CQ48-2024-12-31-fi.zip of Kemira Oyj (y-identifier: 0109823-0) that have

been prepared in accordance with the Commission’s regulatory technical standard for the

financial year ended 31.12.2024.

Responsibilities of the Board of Directors and Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the

company’s report of Board of Directors and financial statements (the ESEF financial

statements) in such a way that they comply with the requirements of the Commission’s

regulatory technical standard. This responsibility includes:

• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of

the Commission’s regulatory technical standard

• tagging the primary financial statements, notes and company’s identification data in the

consolidated financial statements that are included in the ESEF financial statements with

iXBRL tags in accordance with Article 4 of the Commission’s regulatory technical standard

and

• ensuring the consistency between the ESEF financial statements and the audited financial

statements

The Board of Directors and the Managing Director are also responsible for such internal

control as they determine is necessary to enable the preparation of ESEF financial

statements in accordance the requirements of the Commission’s regulatory technical

standard.

Auditor’s Independence and Quality Management

We are independent of the company in accordance with the ethical requirements that are

applicable in Finland and are relevant to the engagement we have performed, and we have

fulfilled our other ethical responsibilities in accordance with these requirements.

The firm applies International Standard on Quality Management (ISQM) 1, which requires the

firm to design, implement and operate a system of quality management including policies or

procedures regarding compliance with ethical requirements, professional standards and

applicable legal and regulatory requirements.

Auditor’s Responsibilities

Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act,

provide assurance on the financial statements that have been prepared in accordance with

the Commission’s technical regulatory standard. We express an opinion on whether the

consolidated financial statements that are included in the ESEF financial statements have

been tagged, in all material respects, in accordance with the requirements of Article 4 of the

Commission's regulatory technical standard.

Our responsibility is to indicate in our opinion to what extent the assurance has been

provided. We conducted a reasonable assurance engagement in accordance with

International Standard on Assurance Engagements (ISAE) 3000.

The engagement includes procedures to obtain evidence on:

KEMIRA 2024 | FINANCIAL STATEMENTS | 194

ESEF FINANCIAL STATEMENT REPORT

• whether the primary financial statements in the consolidated financial statements that are

included in the ESEF financial statements have been tagged, in all material respects, with

iXBRL tags in accordance with the requirements of Article 4 of the Commission's regulatory

technical standard and

• whether the notes and company's identification data in the consolidated financial

statements that are included in the ESEF financial statements have been tagged, in all

material respects, with iXBRL tags in accordance with the requirements of Article 4 of the

Commission's regulatory technical standard and

• whether there is consistency between the ESEF financial statements and the audited

financial statements.

The nature, timing and extent of the selected procedures depend on the auditor’s judgement.

This includes an assessment of the risk of material deviations due to fraud or error from the

requirements of the Commission’s technical regulatory standard.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

Opinion

Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary

financial statements, notes and company's identification data in the consolidated financial

statements that are included in the ESEF financial statements of Kemira Oyj

74370031Y7RK5H88CQ48-2024-12-31-fi.zip for the financial year ended 31.12.2024 have been

tagged, in all material respects, in accordance with the requirements of the Commission's

regulatory technical standard.

Our opinion on the audit of the consolidated financial statements of Kemira Oyj for the

financial year ended 31.12.2024 has been expressed in our auditor's report 10 .2.2025. With this

report we do not express an opinion on the audit of the consolidated financial statements nor

express another assurance conclusion.

Helsinki 20.2.2025

Ernst & Young Oy

Authorized Public Accountant Firm

Mikko Rytilahti

Authorized Public Accountant

KEMIRA 2024 | FINANCIAL STATEMENTS | 195

GROUP KEY FIGURES

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 to 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 these Financial

Statements, as well as at www.kemira.com > Investors > Financial information.


	2024	2023	2022	2021	2020
INCOME STATEMENT AND PROFITABILITY
Revenue, EUR million	2,948	3,384	3,570	2,674	2,427
Revenue, O&G divestment adjusted, EUR million ⁵⁾	2,904	2,889	—	—	—
Operative EBITDA, EUR million	585	667	572	426	435
Operative EBITDA, O&G divestment adjusted, EUR million ⁵⁾	582	596	—	—	—
Operative EBITDA, %	19.9	19.7	16.0	15.9	17.9
Operative EBITDA, O&G divestment adjusted, % ⁵⁾	20.0	20.6	—	—	—
EBITDA, EUR million	551	540	559	373	413
EBITDA, %	18.7	16.0	15.7	14.0	17.0
Operative EBIT, EUR million	399	463	362	225	238
Operative EBIT, O&G divestment adjusted, EUR million ⁵⁾	395	415	—	—	—
Operative EBIT, %	13.5	13.7	10.1	8.4	9.8
Operative EBIT, O&G divestment adjusted, % ⁵⁾	13.6	14.4	—	—	—


	2024	2023	2022	2021	2020
Operating profit (EBIT), EUR million	363	336	348	170	216
Operating profit (EBIT), %	12.3	9.9	9.7	6.4	8.9
Finance costs (net), EUR million	27	44	39	27	35
% of revenue	0.9	1.3	1.1	1.0	1.4
Profit before tax, EUR million	336	292	308	143	181
% of revenue	11.4	8.6	8.6	5.4	7.5
Net profit for the period (attributable to equity owners of the parent company), EUR million	249	199	232	108	131
% of revenue	8.4	5.9	6.5	4.0	5.4
Return on investment (ROI), %	13.2	11.6	12.7	7.2	9.1
Return of equity (ROE), %	14.5	11.9	15.4	8.6	10.9
Capital employed, EUR million ¹⁾	1,920	2,156	2,238	1,995	1,965
Operative return on capital employed (ROCE), % ¹⁾	20.8	21.5	16.2	11.3	12.1
Operative ROCE, %, O&G divestment adjusted ⁵⁾	20.6	22.4	—	—	—
Return on capital employed (ROCE), % ¹⁾	18.9	15.6	15.5	8.5	11.0
Research and development expenses, EUR million	34	34	33	28	29
% of revenue	1.1	1.0	0.9	1.1	1.2
Organic growth, %	-1	-2	27	11	-7

KEMIRA 2024 | FINANCIAL STATEMENTS | 196

GROUP KEY FIGURES


	2024	2023	2022	2021	2020
CASH FLOW
Net cash generated from operating activities, EUR million	485	546	400	220	375
Proceeds from sale of subsidiaries and property, plant and equipment and intangible assets, EUR million	144	10	19	7	2
Capital expenditure, EUR million	170	207	198	170	198
% of revenue	5.8	6.1	5.5	6.3	8.2
Capital expenditure excl. acquisitions, EUR million	167	205	198	169	196
% of revenue	5.7	6.1	5.5	6.3	8.1
Cash flow after investing activities, EUR million	412	349	222	57	173

BALANCE SHEET AND SOLVENCY
Non-current assets, EUR million	2,060	2,051	2,323	2,155	2,018
Shareholders' equity (Equity attributable to equity owners of the parent company), EUR million	1,785	1,665	1,670	1,329	1,192
Total equity including non-controlling interests, EUR million	1,804	1,684	1,685	1,343	1,205
Total liabilities, EUR million	1,566	1,700	1,966	1,797	1,590
Total assets, EUR million	3,381	3,489	3,651	3,139	2,796
Net working capital	248	279	362	287	197
Interest-bearing net liabilities, EUR million	291	535	771	850	759
Equity ratio, %	53	48	46	43	43
Gearing, %	16	32	46	63	63
Interest-bearing net liabilities per EBITDA	0.5	1.0	1.4	2.3	1.8


	2024	2023	2022	2021	2020
PERSONNEL
Personnel at period-end	4,698	4,915	4,902	4,926	4,921
Personnel (average)	4,746	4,946	4,936	4,947	5,038
of whom in Finland	818	806	780	784	790
Wages and salaries, EUR million	335	343	339	288	303

EXCHANGE RATES
Key exchange rates on Dec 31
USD	1.039	1.105	1.067	1.133	1.227
CAD	1.495	1.464	1.444	1.439	1.563
SEK	11.459	11.096	11.122	10.250	10.034
CNY	7.583	7.851	7.358	7.195	8.023
BRL	6.425	5.362	5.639	6.310	6.374

PER SHARE FIGURES
Earnings per share (EPS), basic, EUR ²⁾	1.62	1.30	1.51	0.71	0.86
Earnings per share (EPS), diluted, EUR ²⁾	1.61	1.28	1.50	0.70	0.86
Net cash generated from operating activities per share, EUR ²⁾	3.15	3.56	2.61	1.44	2.45
Dividend per share, EUR ²⁾ ³⁾	0.74	0.68	0.62	0.58	0.58
Dividend payout ratio, % ²⁾ ³⁾	45.7	52.4	41.0	82.2	67.5
Dividend yield, % ²⁾ ³⁾	3.8	4.1	4.3	4.4	4.5
Equity per share, EUR ²⁾	11.59	10.84	10.89	8.68	7.80
Price per earnings per share (P/E ratio) ²⁾	12.04	12.95	9.48	18.88	15.07
Price per equity per share ²⁾	1.68	1.55	1.32	1.54	1.66
Price per cash flow from operations per share ²⁾	6.20	4.72	5.49	9.27	5.28
Dividend paid, EUR million ³⁾	113.9	104.5	95.1	88.8	88.7

KEMIRA 2024 | FINANCIAL STATEMENTS | 197

GROUP KEY FIGURES


	2024	2023	2022	2021	2020
SHARE PRICE AND TRADING
Share price, high, EUR	24.58	18.22	14.94	14.66	14.24
Share price, low, EUR	15.96	13.51	10.36	12.64	8.02
Share price, average, EUR	19.84	15.36	12.57	13.67	11.55
Share price on Dec 31, EUR	19.52	16.79	14.33	13.33	12.94
Number of shares traded (1,000) 4)	46,801	43,852	37,017	57,478	75,885
% on number of shares	30	29	24	38	50
Market capitalization on Dec 31, EUR million ²⁾	3,006	2,579	2,198	2,041	1,979

NUMBER OF SHARES AND SHARE CAPITAL
Average number of shares, basic (1,000) ²⁾	153,921	153,573	153,320	153,092	152,879
Average number of shares, diluted (1,000) ²⁾	155,234	155,051	154,261	153,785	153,373
Number of shares on Dec 31, basic (1,000) ²⁾	153,983	153,620	153,352	153,127	152,924
Number of shares on Dec 31, diluted (1,000) ²⁾	155,409	155,303	154,894	154,068	153,744
Increase (+) / decrease (-) in number of shares outstanding (1,000)	363	267	225	203	275
Share capital, EUR million	221.8	221.8	221.8	221.8	221.8

1) 12-month rolling average.

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

3) The dividend for 2024 is the Board of Directors' proposal to the Annual General Meeting.

4) Shares traded on Nasdaq Helsinki only.

5) The figures for the comparison year 2023 have been adjusted because Kemira divested its Oil & Gas (O&G)-related

portfolio on February 2, 2024. The figures adjusted by Oil & Gas divestment reflect the underlying business performance

of Kemira's Pulp & Paper and Industry & Water segments after the divestment.

KEMIRA 2024 | FINANCIAL STATEMENTS | 198

DEFINITION OF KEY FIGURES

Definition of key figures

Financial figures


KEY FIGURES			DEFINITION OF KEY FIGURES	PURPOSE OF KEY FIGURES
EBITDA	=		Operating profit (EBIT) + depreciation and amortization + impairments	EBITDA describes the profitability of a business when depreciation, amortization and impairments are added to EBIT. The key figure is used to monitor the development of business results.
OPERATIVE EBITDA	=		Operating profit (EBIT) + depreciation and amortization + impairments +/- items affecting comparability	Operative EBITDA describes the profitability of a business when depreciation, amortization and impairments are added to EBIT. The key figure is used to monitor the development of business results. The key figure is calculated by adjusting the items affecting from EBITDA, which improves the comparability of operating profitability between different periods.
ITEMS AFFECTING COMPARABILITY ¹⁾	=		Restructuring and streamlining programs + transaction and integration expenses in acquisitions + divestment of businesses and other disposals + other items	Used as a component in the calculation of operative EBITDA and operative EBIT.
EBIT	=		Revenue + other operating income - operating expenses - depreciation and amortization - impairments + share of the results of associates	EBIT is used to monitor the development of business results. The key figure describes the profitability of the business before financial items and taxes.
OPERATIVE EBIT	=		Operating profit (EBIT) +/- items affecting comparability	Operative EBIT is used to monitor the development of business results. The key figure describes the profitability of the business before financial items and taxes. The key figure is calculated by adjusting the items affecting operating comparability from operating profit, which improves the comparability of operating profitability between different periods.
INTEREST-BEARING NET LIABILITIES	=		Interest-bearing liabilities - cash and cash equivalents	Interest-bearing liabilities is used to monitor the Group's gearing.
EQUITY RATIO (%)	=	100 x	Total equity	Equity ratio (%) indicates what proportion of the assets is covered by equity.
EQUITY RATIO (%)	=	100 x	Total assets - prepayments received
GEARING (%)	=	100 x	Interest-bearing net liabilities	Gearing (%) measures the ratio of interest-bearing net liabilities to equity.
GEARING (%)	=	100 x	Total equity
RETURN ON INVESTMENTS (ROI) (%)	=	100 x	Profit before tax + interest expenses + other financial expenses	Return on investment (%) measures how efficiently invested capital is used.
RETURN ON INVESTMENTS (ROI) (%)	=	100 x	Total assets - non-interest-bearing liabilities ²⁾

KEMIRA 2024 | FINANCIAL STATEMENTS | 199

DEFINITION OF KEY FIGURES


KEY FIGURES			DEFINITION OF KEY FIGURES	PURPOSE OF KEY FIGURES
RETURN ON EQUITY (ROE) (%)	=	100 x	Net profit attributable to equity owners of the parent company	Return on equity (%) is used to measure how effectively the equity owned by the owners of the parent company is used.
RETURN ON EQUITY (ROE) (%)	=	100 x	Equity attributable to equity owners of the parent company ²⁾
RETURN ON CAPITAL EMPLOYED (ROCE) (%)	=	100 x	Operating profit (EBIT) ³⁾	Return on capital employed (%) is used to measure how efficiently capital is employed.
RETURN ON CAPITAL EMPLOYED (ROCE) (%)	=	100 x	Capital employed ⁴⁾
OPERATIVE RETURN ON CAPITAL EMPLOYED (OPERATIVE ROCE) (%)	=	100 x	Operating profit (EBIT) ³⁾	Operative return on capital employed (%) is used to measure how efficiently capital is employed.
OPERATIVE RETURN ON CAPITAL EMPLOYED (OPERATIVE ROCE) (%)	=	100 x	Capital employed ⁴⁾
CASH FLOW AFTER INVESTING ACTIVITIES	=		Net cash generated from operating activities + net cash used in investing activities	Cash flow after investments is a key figure that describes the cash flow from operating activities after investments. This is free cash flow that remains, for example, in the payment of dividends and liabilities.
INTEREST-BEARING NET LIABILITIES / EBITDA	=		Interest-bearing net liabilities	Interest-bearing net liabilities / EBITDA ratio measures the Group's capital structure. The key figure describes how long it would take to pay interest-bearing net liabilities at the current level of profitability if the EBITDA in its entirety were used to repay the debt.
INTEREST-BEARING NET LIABILITIES / EBITDA	=		Operating profit (EBIT) + depreciation and amortization + impairments
NET FINANCIAL COST (%)	=	100 x	Finance costs, net - dividend income +/- exchange rate differences	Net financial cost (%) describes the financial expense structure and the key figure can be compared to the existing average interest rate level.
NET FINANCIAL COST (%)	=	100 x	Interest-bearing net liabilities ²⁾
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	Net working capital is the amount of capital tied up in business operations. It describes the amount of cash needed to run the Group's day-to-day operations.
CAPITAL EMPLOYED	=		Property, plant and equipment + right-of-use assets + intangible assets + net working capital + investments in associates	Capital employed describes the capital committed to the Group's operations (e.g. production facilities), which is a premise for the manufacture of the Group's products for sale. Restricted capital is used as a component in calculating the return on capital employed.
CAPITAL EXPENDITURE	=		Property, plant and equipment + intangible assets + other shares + investments in associates	Investments excluding acquisitions are cash used on the acquisition of non-current assets. The key figure is part of the cash flow statement.
CAPITAL EXPENDITURE EXCL. ACQUISITIONS	=		Property, plant and equipment + intangible assets + other shares + investments in associates - acquisitions	Investments excluding acquisitions are cash used on the acquisition of non-current assets, excluding acquisitions. The key figure is part of the cash flow statement.

KEMIRA 2024 | FINANCIAL STATEMENTS | 200

DEFINITION OF KEY FIGURES


KEY FIGURES		DEFINITION OF KEY FIGURES	PURPOSE OF KEY FIGURES
ORGANIC GROWTH (%)	=	Revenue growth in local currencies, excluding acquisitions and divestments	Organic growth describes revenue growth in local currencies excluding acquisitions and divestments.
INTRINSIC VALUE	=	Operative EBITDA x 8 - interest-bearing net liabilities	Intrinsic value is used as a remuneration criteria in the Group's share-based payments incentive plans.

1) Financial performance measures which 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 the most common items affecting comparability.

2) Average.

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

4) 12-month rolling average.

Per share figures


KEY FIGURES			DEFINITION OF KEY FIGURES	KEY FIGURES			DEFINITION OF KEY FIGURES
EARNINGS PER SHARE (EPS)	=		Net profit attributable to equity owners of the parent company	SHARE PRICE, YEAR AVERAGE	=		Shares traded (EUR)
EARNINGS PER SHARE (EPS)	=		Average number of shares	SHARE PRICE, YEAR AVERAGE	=		Shares traded (volume)

NET CASH GENERATED FROM OPERATING ACTIVITIES PER SHARE	=		Net cash generated from operating activities	PRICE PER EARNINGS PER SHARE (P/E)	=		Share price on Dec 31
NET CASH GENERATED FROM OPERATING ACTIVITIES PER SHARE	=		Average number of shares	PRICE PER EARNINGS PER SHARE (P/E)	=		Earnings per share (EPS), basic

DIVIDEND PER SHARE	=		Dividend paid	PRICE PER EQUITY PER SHARE	=		Share price on Dec 31
DIVIDEND PER SHARE	=		Number of shares on Dec 31	PRICE PER EQUITY PER SHARE	=		Equity per share attributable to equity owners of the parent company

DIVIDEND PAYOUT RATIO (%)	=	100 x	Dividend per share	PRICE PER NET CASH GENERATED FROM OPERATING ACTIVITIES PER SHARE	=		Share price on Dec 31
DIVIDEND PAYOUT RATIO (%)	=	100 x	Earnings per share (EPS), basic		=		Net cash generated from operating activities per share

DIVIDEND YIELD (%)	=	100 x	Dividend per share	SHARE TURNOVER (%)	=	100 x	Number of shares traded in main stock exchange
DIVIDEND YIELD (%)	=	100 x	Share price on Dec 31	SHARE TURNOVER (%)	=	100 x	Average number of shares

EQUITY PER SHARE	=		Equity attributable to equity owners of the parent company on Dec 31
EQUITY PER SHARE	=		Number of shares on Dec 31

KEMIRA 2024 | FINANCIAL STATEMENTS | 201

RECONCILIATION OF IFRS FIGURES

Reconciliation to IFRS figures


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

Revenue, O&G divestment adjusted
Pulp & Paper	422.9	412.4	399.0	412.4	1,646.7	504.6	421.2	403.6	418.8	1,748.2
Industry & Water, O&G divestment adjusted	295.9	321.0	328.6	311.3	1,256.9	291.0	287.9	290.7	271.4	1,140.9
Total, O&G divestment adjusted	718.8	733.4	727.6	723.7	2,903.5	795.6	709.1	694.3	690.2	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	0.0
Industry & Water, O&G divestment adjustment	44.5	0.0	0.0	0.0	44.5	110.5	131.0	134.4	118.7	494.6
Total	44.5	0.0	0.0	0.0	44.5	110.5	131.0	134.4	118.7	494.6

Revenue
Pulp & Paper	422.9	412.4	399.0	412.4	1,646.7	504.6	421.2	403.6	418.8	1,748.2
Industry & Water	340.5	321.0	328.6	311.3	1,301.4	401.5	418.9	425.1	390.0	1,635.5
Total	763.3	733.4	727.6	723.7	2,948.1	906.0	840.1	828.7	808.8	3,383.7

Operative EBITDA, O&G divestment adjusted
Pulp & Paper	88.2	67.9	70.7	76.2	303.1	109.4	65.2	68.9	87.5	330.9
Industry & Water, O&G divestment adjusted	71.0	72.6	76.7	58.8	279.1	60.1	68.1	75.0	61.8	265.0
Total, O&G divestment adjusted	159.2	140.5	147.4	135.0	582.1	169.4	133.3	143.8	149.3	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	0.0
Industry & Water, O&G divestment adjusted	3.3	0.0	0.0	0.0	3.3	23.2	17.7	16.5	13.4	70.8
Total	3.3	0.0	0.0	0.0	3.3	23.2	17.7	16.5	13.4	70.8

KEMIRA 2024 | FINANCIAL STATEMENTS | 202

RECONCILIATION OF IFRS FIGURES


					2024					2023
EUR million	1-3	4-6	7-9	10-12	Total	1-3	4-6	7-9	10-12	Total
Operative EBITDA
Pulp & Paper	88.2	67.9	70.7	76.2	303.1	109.4	65.2	68.9	87.5	330.9
Industry & Water	74.3	72.6	76.7	58.8	282.3	83.3	85.8	91.5	75.2	335.8
Total	162.5	140.5	147.4	135.0	585.4	192.6	151.0	160.3	162.7	666.7

Items affecting comparability in EBITDA
Pulp & Paper	-0.1	-0.9	-4.1	-15.4	-20.6	-8.5	-1.3	-0.1	-13.0	-22.9
Industry & Water	-8.3	-2.4	-0.3	-3.1	-14.1	0.0	-2.4	-3.0	-98.4	-103.7
Total	-8.4	-3.3	-4.5	-18.5	-34.8	-8.5	-3.7	-3.1	-111.4	-126.7

EBITDA
Pulp & Paper	88.0	67.0	66.6	60.8	282.4	100.9	63.9	68.7	74.5	308.0
Industry & Water	66.0	70.1	76.3	55.7	268.2	83.3	83.5	88.5	-23.2	232.0
Total	154.1	137.1	142.9	116.5	550.7	184.1	147.4	157.2	51.3	540.0

Operative EBIT, O&G divestment adjusted
Pulp & Paper	59.8	38.0	41.1	45.0	183.8	80.4	37.6	39.8	58.6	216.3
Industry & Water, O&G divestment adjusted	54.6	56.0	59.7	41.3	211.7	44.1	52.0	58.0	45.1	199.2
Total, O&G divestment adjusted	114.4	94.0	100.8	86.2	395.5	124.4	89.6	97.8	103.7	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	0.0
Industry & Water, O&G divestment adjusted	3.2	0.0	0.0	0.0	3.2	17.4	11.3	9.9	8.9	47.6
Total	3.2	0.0	0.0	0.0	3.2	17.4	11.3	9.9	8.9	47.6

Operative EBIT
Pulp & Paper	59.8	38.0	41.1	45.0	183.8	80.4	37.6	39.8	58.6	216.3
Industry & Water	57.8	56.0	59.7	41.3	214.9	61.5	63.3	67.8	54.1	246.7
Total	117.6	94.0	100.8	86.2	398.7	141.9	100.9	107.6	112.6	463.0

KEMIRA 2024 | FINANCIAL STATEMENTS | 203

RECONCILIATION OF IFRS FIGURES


					2024					2023
EUR million	1-3	4-6	7-9	10-12	Total	1-3	4-6	7-9	10-12	Total
Items affecting comparability in EBIT
Pulp & Paper	-0.1	-0.9	-4.1	-16.1	-21.3	-8.5	-1.3	-0.1	-13.0	-22.9
Industry & Water	-8.3	-2.4	-0.3	-3.1	-14.1	0.0	-2.4	-3.0	-98.4	-103.7
Total	-8.4	-3.3	-4.5	-19.2	-35.5	-8.5	-3.7	-3.1	-111.4	-126.7

EBIT
Pulp & Paper	59.6	37.1	36.9	28.8	162.4	71.9	36.3	39.7	45.5	193.4
Industry & Water	49.5	53.6	59.4	38.2	200.8	61.5	61.0	64.8	-44.3	143.0
Total	109.2	90.7	96.3	67.0	363.2	133.4	97.2	104.5	1.3	336.4

Operative EBITDA	162.5	140.5	147.4	135.0	585.4	192.6	151.0	160.3	162.7	666.7
Restructuring and streamlining programs	-0.2	-1.0	-1.2	-10.1	-12.5	0.0	-1.0	0.0	0.1	-0.9
Transaction and integration expenses in acquisition	-0.1	-0.1	0.0	0.0	-0.2	-0.1	0.0	0.0	-0.1	-0.2
Divestment of businesses and other disposals	-7.9	-2.2	-3.3	-8.4	-21.8	-8.9	-2.6	-3.1	-111.3	-125.9
Other items	-0.1	-0.1	0.0	0.0	-0.2	0.4	0.0	0.0	0.0	0.4
Total items affecting comparability	-8.4	-3.3	-4.5	-18.5	-34.8	-8.5	-3.7	-3.1	-111.4	-126.7
EBITDA	154.1	137.1	142.9	116.5	550.7	184.1	147.4	157.2	51.3	540.0

Operative EBIT	117.6	94.0	100.8	86.2	398.7	141.9	100.9	107.6	112.6	463.0
Total items affecting comparability in EBITDA	-8.4	-3.3	-4.5	-18.5	-34.8	-8.5	-3.7	-3.1	-111.4	-126.7
Items affecting comparability in depreciation, amortization and impairments	0.0	0.0	0.0	-0.7	-0.7	0.0	0.0	0.0	0.0	0.0
Operating profit (EBIT)	109.2	90.7	96.3	67.0	363.2	133.4	97.2	104.5	1.3	336.4

ROCE AND OPERATIVE ROCE
Operative EBIT	117.6	94.0	100.8	86.2	398.7	141.9	100.9	107.6	112.6	463.0
Operating profit (EBIT)	109.2	90.7	96.3	67.0	363.2	133.4	97.2	104.5	1.3	336.4
Capital employed ¹⁾	2,092.9	2,032.1	1,963.2	1,920.1	1,920.1	2,244.5	2,221.5	2,188.9	2,155.5	2,155.5

Operative ROCE, %	21.0	21.3	21.7	20.8	20.8	19.4	21.0	21.6	21.5	21.5
ROCE, %	14.9	15.0	15.2	18.9	18.9	18.7	20.1	21.3	15.6	15.6

KEMIRA 2024 | FINANCIAL STATEMENTS | 204

RECONCILIATION OF IFRS FIGURES


					2024					2023
EUR million	1-3	4-6	7-9	10-12	Total	1-3	4-6	7-9	10-12	Total
NET WORKING CAPITAL
Inventories	292.6	299.9	301.3	307.9	307.9	421.5	383.9	347.5	281.8	281.8
Trade receivables and other receivables	449.4	434.6	434.9	420.1	420.1	517.6	494.4	496.8	468.2	468.2
Excluding financing items in other receivables	-12.1	-6.7	-8.1	-7.1	-7.1	-23.7	-21.9	-10.0	-18.6	-18.6
Trade payables and other liabilities	586.8	530.9	516.4	517.8	517.8	633.2	552.6	569.4	489.4	489.4
Excluding financing items in other liabilities	-143.3	-86.9	-88.1	-44.5	-44.5	-127.7	-78.2	-83.1	-37.0	-37.0
Net working capital	286.4	283.8	299.8	247.7	247.7	409.9	382.0	347.9	278.9	278.9

INTEREST-BEARING NET LIABILITIES
Non-current interest-bearing liabilities	491.7	494.1	488.5	547.1	547.1	832.6	639.6	641.8	615.7	615.7
Current interest-bearing liabilities	456.1	258.9	254.9	263.6	263.6	148.8	325.5	327.8	322.1	322.1
Interest-bearing liabilities	947.8	753.0	743.5	810.7	810.7	981.4	965.1	969.6	937.8	937.8
Cash and cash equivalents	572.2	384.6	433.6	519.2	519.2	273.2	299.5	403.1	402.5	402.5
Interest-bearing net liabilities	375.6	368.4	309.8	291.5	291.5	708.2	665.5	566.5	535.2	535.2

1) 12-month rolling average.

KEMIRA 2024 | FINANCIAL STATEMENTS | 205

QUARTERLY EARNINGS PERFORMANCE

Quarterly Earnings Performance


	2024					2023
EUR million	1-3	4-6	7-9	10-12	Total	1-3	4-6	7-9	10-12	Total
Revenue
Pulp & Paper	422.9	412.4	399.0	412.4	1,646.7	504.6	421.2	403.6	418.8	1,748.2
Industry & Water	340.5	321.0	328.6	311.3	1,301.4	401.5	418.9	425.1	390.0	1,635.5
Total	763.3	733.4	727.6	723.7	2,948.1	906.0	840.1	828.7	808.8	3,383.7
EBITDA ¹⁾
Pulp & Paper	88.0	67.0	66.6	60.8	282.4	100.9	63.9	68.7	74.5	308.0
Industry & Water	66.0	70.1	76.3	55.7	268.2	83.3	83.5	88.5	-23.2	232.0
Total	154.1	137.1	142.9	116.5	550.7	184.1	147.4	157.2	51.3	540.0
EBIT ¹⁾
Pulp & Paper	59.6	37.1	36.9	28.8	162.4	71.9	36.3	39.7	45.5	193.4
Industry & Water	49.5	53.6	59.4	38.2	200.8	61.5	61.0	64.8	-44.3	143.0
Total	109.2	90.7	96.3	67.0	363.2	133.4	97.2	104.5	1.3	336.4
Finance costs, net	-8.3	-6.6	-6.9	-5.1	-26.9	-10.7	-12.1	-9.9	-11.6	-44.4
Profit before tax	100.9	84.1	89.4	61.9	336.3	122.7	85.1	94.6	-10.3	292.0
Income taxes	-21.9	-18.7	-22.2	-10.8	-73.6	-27.2	-17.4	-19.3	-16.7	-80.7
Net profit for the period	79.0	65.4	67.2	51.1	262.7	95.4	67.7	75.2	-27.1	211.3

Net profit attributable to
Equity owners of the parent	75.8	62.0	63.6	48.0	249.4	92.9	64.7	71.7	-30.2	199.1
Non-controlling interests	3.2	3.4	3.6	3.0	13.2	2.5	3.0	3.5	3.1	12.2
Net profit for the period	79.0	65.4	67.2	51.1	262.7	95.4	67.7	75.2	-27.1	211.3

Earning per share, basic, EUR	0.49	0.40	0.41	0.31	1.62	0.61	0.42	0.47	-0.20	1.30
Earning per share, diluted, EUR	0.49	0.40	0.41	0.31	1.61	0.60	0.42	0.46	-0.20	1.28

1) Includes items affecting comparability.

KEMIRA 2024 | FINANCIAL STATEMENTS | 206

SHARES AND SHAREHOLDERS

Shares and shareholders

Shares and share capital

On December 31, 2024, Kemira Oyj’s share capital amounted to EUR 221.8 million and the

number of shares was 155,342,557 . Each share entitles the holder to one vote at the Annual

General Meeting.

Shareholders

At the end of December 2024, Kemira Oyj had 48,255 registered shareholders (49,659 on

December 31, 2023). Non-Finnish shareholders held 38.3% of the shares (34.7% on December

31, 2023), including nominee-registered holdings. Households owned 18.1% 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.

A list of Kemira’s largest shareholders is updated monthly and can be found on the company

website at kemira.com/investors.

Listing and trading

Kemira Oyj’s shares are listed on Nasdaq Helsinki. The trading code for the shares is KEMIRA

and the ISIN code is FI0009004824.

Kemira Oyj’s share price increased by 16% during the reporting period and closed at EUR 19.52

on the Nasdaq Helsinki at the end of December 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-December 2024and

the average share price was EUR 19.84. The company’s market capitalization, excluding

treasury shares, was EUR 3,006 million at the end of December 2024 (2,579 on December 31,

2023).

In January-December 2024, Kemira Oyj’s share trading turnover on the Nasdaq Helsinki was

EUR 892 million (EUR 688 million in January-December 2023). The average daily trading

volume was 183,567 shares (174,707 in January-December 2023). The total volume of Kemira

Oyj’s share trading in January-December 2024 was 63 million shares (57 million shares in

January-December 2023), 25% (23% in January-December 2023) of which was executed on

other trading platforms (e.g. Turquoise, CBOE DXE). Source: Nasdaq and Kemira.com.

Up-to-date information on Kemira’s share price is available on the company’s website at

kemira.com/investors.

Dividend policy and dividend distribution

On December 31, 2024, Kemira Oyj’s distributable funds totaled EUR 794,029,352 of which net