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Kemira Oyj
Financial Statements 2023
Kemira Oyj
Energiakatu 4 Tel. +358 10 8611 Business ID 0109823-0
FI-00180 Helsinki, Finland Fax +358 108621 119 Registered office Helsinki
www.kemira.com
Financial Statements 2023
Table of contents

BOARD OF DIRECTORS' REVIEW 2023 ........................................ | 3 |  | 3. | Capital expenditures, acquisitions and divestments ..................................................................... | 48 |  |  | 5.5. | Management of financial risks .................................... | 78
CONSOLIDATED FINANCIAL STATEMENTS (IFRS) *) .............. | 27 |  | 3.1. | Goodwill ............................................................................ | 48 |  |  | 5.6. | Derivative instruments .................................................. | 82
| Consolidated Income Statement ........................................... | 27 |  | 3.2. | Other intangible assets ................................................. | 50 |  |  | 6. | Group structure .............................................................. | 84
| Consolidated Statement of Comprehensive |  |  | 3.3. | Property, plant and equipment ................................... | 52 |  |  | 6.1. | Related parties ................................................................ | 84
| Income ......................................................................................... | 27 |  | 3.4. | Leases ............................................................................... | 54 |  |  | 6.2. | The Group's subsidiaries and investments in | 86
| Consolidated Balance Sheet .................................................. | 28 |  | 3.5. | Other shares .................................................................... | 56 |  |  |  | associates ........................................................................
| Consolidated Statement of Cash Flow ................................ | 29 |  | 3.6. | Business combinations ................................................. | 57 |  |  | 7. | Off-balance sheet items ............................................... | 88
| Consolidated Statement of Changes in Equity .................. | 30 |  | 3.7. | Assets classified as held-for-sale ............................... | 58 |  |  | 7.1. | Commitments and contingent liabilities ................... | 89
| Notes to the Consolidated Financial Statements ............. | 32 |  | 4. | Working capital and other balance sheet items ..... | 60 |  |  | 7.2. | Events after the balance sheet date .......................... | 89
| 1. | The Group's material accounting policies for the | 32 |  | 4.1. | Inventories ........................................................................ | 60 |  |  |  |  |
|  | Consolidated Financial Statements .......................... |  |  | 4.2. | Trade receivables and other current receivables ... | 60 |  | KEMIRA OYJ'S FINANCIAL STATEMENTS (FAS) *) ................... | 90
| 2. | Financial performance .................................................. | 36 |  | 4.3. | Trade payables and other current liabilities ............ | 61 |  | BOARD OF DIRECTORS' PROPOSAL FOR | 109
| 2.1. | Segment information ..................................................... | 36 |  | 4.4. | Deferred tax liabilities and assets .............................. | 62 |  | PROFIT DISTRIBUTION AND SIGNATURES *) ............................
| 2.2. | Other operating income and expenses ...................... | 40 |  | 4.5. | Defined benefit pension plans and employee | 65 |  | AUDITOR'S REPORT ........................................................................ | 110
| 2.3. | Share-based payments ................................................. | 42 |  |  | benefits ............................................................................. |  | ESEF FINANCIAL STATEMENT REPORT ..................................... | 114
| 2.4. | Depreciation, amortization and impairments .......... | 44 |  | 4.6. | Provisions ......................................................................... | 69 |  | OTHER FINANCIAL INFORMATION .............................................. |
| 2.5. | Finance income and expenses ..................................... | 45 |  | 5. | Capital structure and financial risks ......................... | 70 |  |  | Group key figures ...................................................................... |
| 2.6. | Income taxes .................................................................... | 46 |  | 5.1. | Capital structure ............................................................. | 70 |  |  | Definition of key figures .......................................................... |
| 2.7. | Earnings per share .......................................................... | 47 |  | 5.2. | Shareholders' equity ...................................................... | 72 |  |  | Reconciliation to IFRS figures ................................................ |
| 2.8. | Other comprehensive income ...................................... | 47 |  | 5.3. | Interest-bearing liabilities ............................................ | 73 |  |  | Quarterly earnings performance ........................................... |
|  |  |  |  | 5.4. | Financial assets and liabilities by measurement | 74 |  | SHARES AND SHAREHOLDERS .................................................... |
|  |  |  |  |  | categories ......................................................................... |  | INFORMATION FOR INVESTORS .................................................. |

*) Part of the audited Financial Statements 2023
This is a translation of the Finnish original Financial Statements and Board of Directors' Review 2023.
KEMIRA 2023 | FINANCIAL STATEMENTS | 2
Board of Directors’ Review 2023
In 2023, Kemira Group’s revenue decreased by 5% to EUR 3,383.7 million (3,569.6). Revenue in
local currencies, excluding acquisitions and divestments, decreased by 2% as the impacts
from the weak pulp and paper market were not fully compensated by revenue growth in the
Industry & Water segment.
Operative EBITDA increased by 17% to a record-high of EUR 666.7 million (571.6) following
strong improvement in the Industry & Water segment. The operative EBITDA margin increased
to 19.7% (16.0%) with both segments reporting record-high margins. EBITDA decreased by 3%
to EUR 540.0 million (558.8). The differences between operative and reported figures are
explained by items affecting comparability, which were mainly related to the expected loss
from the divestment of the Oil & Gas business.
Operative EBIT increased by 28% to EUR 463.0 million (361.6). EBIT decreased by 3% to EUR
336.4 million (347.6).
Cash flow from operating activities was very strong at EUR 546.0 million (400.3).
EPS, diluted decreased by 14% to EUR 1.28 (1.50) mainly due to the expected loss from the
divestment of the Oil & Gas business.
The Board of Directors proposes to the Annual General Meeting 2024 a cash dividend of EUR
0.68 per share (0.62), totaling EUR 104 million (95). It is proposed that the dividend be paid in
two installments, in April and November.
KEY FIGURES AND RATIOS

EUR million | 2023 | 2022 | 2021 |  | EUR million | 2023 | 2022 | 2021
Revenue | 3,383.7 | 3,569.6 | 2,674.4 |  | Capital employed* | 2,155.5 | 2,238.0 | 1,995.0
Operative EBITDA | 666.7 | 571.6 | 425.5 |  | Operative ROCE*, % | 21.5 | 16.2 | 11.3
Operative EBITDA, % | 19.7 | 16.0 | 15.9 |  | ROCE*, % | 15.6 | 15.5 | 8.5
EBITDA | 540.0 | 558.8 | 373.2 |  | Cash flow from operating activities | 546.0 | 400.3 | 220.2
EBITDA, % | 16.0 | 15.7 | 14.0 |  | Capital expenditure excl. acquisition | 204.9 | 197.9 | 168.8
Operative EBIT | 463.0 | 361.6 | 225.4 |  | Capital expenditure | 206.8 | 197.9 | 169.8
Operative EBIT, % | 13.7 | 10.1 | 8.4 |  | Cash flow after investing activities | 349.3 | 222.3 | 57.3
EBIT | 336.4 | 347.6 | 170.1 |  | Equity ratio, % at period-end | 48.3 | 46.2 | 42.8
EBIT, % | 9.9 | 9.7 | 6.4 |  | Equity per share, EUR | 10.84 | 10.89 | 8.68
Net profit for the period | 211.3 | 239.7 | 115.2 |  | Gearing, % at period-end | 31.8 | 45.8 | 63.3
Earnings per share, diluted, EUR | 1.28 | 1.50 | 0.70 |  | Personnel (average) | 4,946 | 4,936 | 4,947

*12-month rolling average (ROCE, % based on the EBIT).
Unless otherwise stated, all comparisons in this report are made to the corresponding period in 2022.
Kemira provides certain financial performance measures (alternative performance measures) that are not
defined by IFRS. Kemira believes that alternative performance measures followed by capital markets and
Kemira management, such as revenue growth in local currencies, excluding acquisitions and divestments
(=organic growth), EBITDA, operative EBITDA, operative EBIT, cash flow after investing activities, and
gearing, provide useful information about Kemira’s comparable business performance and financial
position. Selected alternative performance measures are also used as performance criteria in
remuneration.
Kemira’s alternative performance measures should not be viewed in isolation from the equivalent IFRS
measures, and alternative performance measures should be read in conjunction with the most directly
comparable IFRS measures. Definitions of the alternative performance measures can be found in the
definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial
information. 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.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 3
Financial performance in 2023
Revenue decreased by 5%. Revenue in local currencies, excluding acquisitions and
divestments, decreased by 2% as sales volumes in the Pulp & Paper segment declined as a
consequence of a weak market environment. In Industry & Water, sales volumes increased
slightly. Overall sales prices increased, driven by higher sales prices in Industry & Water.

Revenue | 2023 | 2022 | ∆% | Organic growth*, % | Currency impact, % | Acq. & div. impact, %
EUR, million | EUR, million
Pulp & Paper | 1,748.2 | 2,027.7 | -14 | -11 | -2 | -2
Industry & Water | 1,635.5 | 1,541.9 | +6 | +9 | -2 | 0
Total | 3,383.7 | 3,569.6 | -5 | -2 | -2 | -1

*Revenue growth in local currencies, excluding acquisitions and divestments
Geographically, the revenue split was as follows: EMEA (Europe, Middle East, Africa) 48%
(51%), the Americas 43% (40%), and Asia Pacific 9% (9%).
Operative EBITDA increased by 17%, a record-high of EUR 666.7 million (571.6). Operative
EBITDA grew strongly in Industry & Water, following higher sales prices. In Pulp & Paper,
operative EBITDA declined slightly, mainly due to lower sales volumes. Variable costs overall
moderated during the year. The operative EBITDA margin improved to a record-high, 19.7%,
following improvement in both segments, particularly in Industry & Water. Both segments had
a record-high margin in 2023.

Variance analysis, EUR million | Jan-Dec
Operative EBITDA, 2022 | 571.6
Sales volumes | -61.8
Sales prices | +114.3
Variable costs | +106.9
Fixed costs | -49.3
Currency exchange | -4.0
Others | -11.0
Operative EBITDA, 2023 | 666.7

Operative EBITDA | 2023 | 2022 | ∆% | 2023 | 2022
EUR, million | EUR, million | %-margin | %-margin
Pulp & Paper | 330.9 | 348.0 | -5 | 18.9 | 17.2
Industry & Water | 335.8 | 223.7 | +50 | 20.5 | 14.5
Total | 666.7 | 571.6 | +17 | 19.7 | 16.0

EBITDA decreased by 3% to EUR 540.0 million (558.8). The difference between it and
operative EBITDA is explained by items affecting comparability. Items affecting
comparability were mainly related to the expected loss of EUR 101 million from the
divestment of the Oil & Gas business (including transaction fees), a provision of EUR 12 million
related to the expected underutilization of a single-asset energy company in Pori, Finland,
majority owned by Kemira via Pohjolan Voima and a loss of EUR 10 million related to the
divestment of the majority of Kemira's colorants business. Items affecting comparability in
the comparison period mainly related to an expected loss from the divestment of most of our
colorants business, environmental provisions, Kemira's exit from Russia and a manufacturing
unit sale to a customer.

Items affecting comparability, EUR million | 2023 | 2022
Within EBITDA | -126.7 | -12.8
Pulp & Paper | -22.9 | -11.4
Industry & Water | -103.7 | -1.4
Within depreciation, amortization and impairments | 0.0 | -1.2
Pulp & Paper | 0.0 | -1.2
Industry & Water | 0.0 | 0.0
Total items affecting comparability in EBIT | -126.7 | -14.0

Depreciation, amortization, and impairments were EUR 203.6 million (211.2), including the
EUR 6.9 million (9.4) amortization of purchase price allocation.
Operative EBIT increased by 28% compared to the previous year. EBIT decreased by 3%, and
the difference between the two is explained by items affecting comparability, which are
described above in the EBITDA section. Items affecting comparability in the comparison
period are also described above in the EBITDA section.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 4
Net finance costs totaled EUR -44.4 million (-39.4). The increase was due to foreign exchange
valuations. Income taxes were EUR -80.7 million (-68.5), with the reported tax rate being 28%
(22%)), which was impacted by the divestment of the Oil & Gas business. Net profit for the
period decreased by 12% mainly due to the expected loss from the divestment of the Oil & Gas
business.
Financial position and cash flow
Cash flow from operating activities in January-December 2023 increased to a record-high,
EUR 546.0 million (400.3), due to lower net working capital. Cash flow after investing activities
was also very strong, at EUR 349.3 million (222.3).
At the end of the period, interest-bearing liabilities totaled EUR 937.8 million (1,021.8),
including lease liabilities of EUR 121.4 million (148.9). The average interest rate of the Group’s
interest-bearing loan portfolio (excluding leases) was 2.8% (2.4%), and the duration was 16
months (22). Fixed-rate loans accounted for 77% (83%) of net interest-bearing liabilities,
including lease liabilities.
Short-term liabilities maturing in the next 12 months amounted to EUR 322.1 million. On
December 31, 2023, cash and cash equivalents totalled EUR 402.5 million (250.6). The Group
has a EUR 400 million undrawn committed credit facility maturing in 2026.
At the end of the period, Kemira Group’s net debt was EUR 535.2 million (771.2), including
lease liabilities. The equity ratio was 48% (46%), while gearing was 32% (46%).
The fair value of Pohjolan Voima and Teollisuuden Voima shares decreased in 2023, mainly
due to lower forward electricity prices and long-term forecasts. Olkiluoto 3 started regular
electricity production during Q2 2023 and Kemira's indirect ownership through PVO's B2
shares was valued using the discounted cash flow method for the first time in Q2 2023.
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 132 million, of which 56% was
hedged on an average basis. The Chinese renminbi denominated exchange rate risk against
EUR had an equivalent value of approximately EUR 115 million, of which 69% was hedged on an
average basis. The Canadian dollar denominated exchange rate risk against EUR was
approximately EUR 56 million, of which 56 % was hedged on an average basis. The Swedish
krona denominated exchange rate risk against EUR had an equivalent value of approximately
EUR 35 million, of which 73% was hedged on an average basis. In addition, Kemira is exposed
to smaller transaction risks against EUR, mainly in relation to the Korean won, the Danish
krona, the Polish zloty and the Norwegian krona and against USD mainly in relation to the
Canadian dollar and the Brazilian real, with annual exposure in those currencies being
approximately EUR 152 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 translation exposure derives from the US dollar and the Canadian dollar.
The strengthening of currencies against the euro would increase Kemira’s revenue and
EBITDA through a translation effect.
Capital expenditure
In January-December 2023, capital expenditure excluding acquisitions increased by 4% to
EUR 204.9 million (197.9). Capital expenditure excluding acquisitions (capex) can be broken
down as follows: expansion capex 16% (22%), improvement capex 28% (29%), and
maintenance capex 55% (49%).
Research and Development
In January-December 2023, total research and development expenses were EUR 34.2 million
(33.4), representing 1.0% (0.9%) of the Group’s revenue.
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.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 5
At the end of 2023, Kemira had 419 (401) patent families, including 2,041 (2,101) granted
patents, and 963 (1,026) pending applications. During 2023, Kemira applied for 55 (34) new
patents and started 11 new product development projects, 82% of them aiming to improve
customers' resource efficiency. At the same time, Kemira started the commercialization of
four new product development projects, all contributing to improving resource efficiency in
customer processes. Kemira also has started several external partnerships in order to
innovate and commercialize new renewable solutions for its customers.
Human resources
At the end of the period, Kemira Group had 4,915 employees (4,902). Kemira had 790 (756)
employees in Finland, 1,709 (1,690) employees elsewhere in EMEA, 1,484 (1,525) in the
Americas, and 932 (931) in APAC.
Non-financial information
DISCLOSURE OF NON-FINANCIAL INFORMATION
Kemira discloses key non-financial information in this section according to the requirements
laid down in the EU Directive and Finnish Accounting Act. More information on the non-
financial and sustainability matters is provided in the Sustainability Report. The non-financial
disclosures are based on the latest Global Reporting Initiative (GRI) disclosures, which are
prepared in accordance with the latest GRI standards and are externally assured by an
independent third-party. Kemira’s most relevant risks are described separately in the risk
section on page 21.
OVERVIEW OF KEMIRA’S BUSINESS
Kemira is a global leader in sustainable chemical solutions for water intensive industries and
provides best suited products and expertise to improve our customers’ product quality, and
process and resource efficiency. Kemira has two business areas: Pulp & Paper and Industry &
Water. Kemira has operations in around 40 countries and had 60 manufacturing facilities at
the end of 2023. In Pulp & Paper, Kemira offers chemical solutions for bleaching, packaging,
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. In December 2023, Kemira announced it is divesting its Oil & Gas related business
and the divestment was closed on February 2, 2024. The main product categories in Industry
& Water are coagulants and polymers.
Profitable sustainable growth is Kemira’s strategic priority. Sustainability is integrated into
Kemira’s strategy and long-term success as Kemira’s customers are increasingly asking for
sustainable products. Kemira provides its cust omers with solutions that help them to improve
the resource efficiency of their operations. In 2023, 59% o f Kemira’s revenue came from
products that improve customer resource efficiency. Kemira's customers focus increasingly
on the recyclability and biodegradability of their products. As a result, renewable solutions
form one of Kemira's strategic focus areas. Kemira’s renewable solutions strategy is covered
in more detail in the Annual Review. More information on Kemira’s value creation model can
be found on page 8 of the Annual Review.
CORPORATE SUSTAINABILITY PRIORITIES
Kemira has systematic procedures in place to evaluate and address the economic,
environmental, and social impacts of its own operations and business relationships. Our
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
model; 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. Kemira is a signatory of the United Nations Global Compact, and our
sustainability work is guided by the UN Sustainable Development Goals (SDGs). Kemira is also
committed to operating according to the principles of Responsible Care®, a voluntary
commitment created by the global chemical industry to drive continuous improvement and
achieve excellence in environmental, health and safety, and security performance.
Kemira’s sustainability work focuses on five themes, which cover the most material topics and
their impact: Safety, People, Water, Circularity, and Climate. Kemira measures progress in the
priority areas through group-level key performance indicators (KPI) and targets that are
approved by the Board of Directors. The relevant management processes relating to material
corporate sustainability issues are continuously developed and implemented as part of our
integrated management system, which is externally certified against ISO 9001:2015 for Quality,
ISO 14001:2015 for Environment, and ISO 45001:2018 for Occupational Health and Safety.
Kemira also regularly reviews its stakeholders expectations and concerns regarding
sustainability. Kemira conducted a double-materiality assessment in 2023 based on the

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 6
upcoming Corporate Sustainability Reporting Directive (CSRD) methodology. The results and
process are described in more detail on pages 8-10 of Kemira's sustainability report.
MANAGEMENT OF CORPORATE SUSTAINABILITY
Sustainability is a key element of Kemira’s strategy. Work on sustainability is led by the
Sustainability Director, who reports to the EVP, Operational Excellence and Sustainability. The
sustainability work is governed by the cross-functional and cross-business Sustainability
Steering Team, which develops Kemira’s ambition level in sustainability and steers the work of
dedicated sustainability programs. The team has a range of participants from strategy to
business and manufacturing representatives, including Management Board members. The
Board of Directors oversees the implementation of strategy as well as reviews risks, including
environmental and social matters. In 2022, the Board of Directors included sustainability-
related targets, reduction of Scope 1 and Scope 2 emissions and development of Kemira’s
renewable solutions revenue, as key performance indicators in the performance period 2023–
2025 of Kemira’s long-term incentive plan. The same sustainability-related targets are also
included in the new performance period 2024–2026 of Kemira's long-term incentive plan.
MATERIAL TOPICS
More information on sustainability at Kemira and the outcome of Kemira’s sustainability
targets in 2023 can be found on page 14.
Environmental and climate-related matters
Kemira's conducted a double-materiality analysis in 2023. Based on the analysis, Kemira has
identified topics related to climate, circularity, water, and safety as its environmental
sustainability focus areas.
In climate, we continuously strive to reduce our environmental impact. In 2022, Kemira
committed to the Science-Based Targets Initiative (SBTi) and simultaneously updated its
climate target for Scope 1 and Scope 2 emissions. Kemira is committed to reducing its
combined Scope 1 and Scope 2 emissions by 50% by 2030, from a 2018 baseline of 930,000
tons CO2e. This target is in line with limiting global warming to 1.5 °C, which is currently the
most ambitious criterion for setting climate change mitigation targets. Kemira’s long-term
ambition is to be carbon neutral by 2045 for combined Scope 1 and 2 emissions. As part of its
SBTi commitment, Kemira also committed to developing a quantified near-term Scope 3
target within the timeframe set by the Science Based Target initiative framework. Kemira will
submit these updated targets to be validated by the SBTi when they are finalized in H1 2024.
Kemira is working actively with its suppliers through a supplier engagement program to find
ways to reduce Scope 3 emissions.
In water, we work to mitigate water-related risks and grasp water-related opportunities.
Kemira operates in businesses that use a lot of water and water is a common denominator for
Kemira’s both segments. Water is one of Kemira's strategic focus areas and Kemira has
ambitions to grow in water treatment. In terms of Kemira’s operations, Kemira aims to
continuously improve freshwater use intensity in its operations. Our sustainability target as of
2022 is to reach Leadership level in CDP Water Security rating by the end of 2025. In terms of
circularity, we aim to reduce waste and increase the use of renewable raw materials. Kemira's
sustainability target is to reduce disposed production waste intensity by 15% by 2030 from a
2019 baseline level. In 2020, we introduced a new group-level KPI to increase our revenue from
renewable solutions from EUR 100 million to 500 EUR million by 2030. In conjunction with the
revenue target, Kemira is working to increase the share of renewable and recycled raw
materials of the raw materials it uses. This will allow Kemira to reduce pressure on natural
resources, and support our customers in moving away from fossil-based raw materials.
Social and employment-related matters
Kemira has identified people and safety as its social sustainability focus areas. Ensuring
workplace safety is a key priority in all our operations. High people, process, and
environmental safety performance is fundamental to our business and to our customers. Our
target in safety is to improve TRIF (total recordable injury frequency per million working hours
for Kemira’s employees and contractors) to 1.5 by 2025 and to 1.1 by 2030. Also fostering a
strong company culture and commitment of our employees are important success factors for
our business. In people, our target is to reach the top 10% cross-industry norm for Diversity,
Equity, & Inclusion by 2025.
Respect for human rights
Our Code of Conduct is the foundation for how we conduct business at Kemira. In our code we
state that we are committed to the principles of The Universal Declaration of Human Rights
and the core conventions of the International Labour Organization (ILO) and the United
Nations’ Global Compact, and we expect our suppliers and business partners to share these
principles. Further we work by the United Nations Guiding Principles which require companies
to conduct due diligence to protect and respect human rights. We have a public statement for
slavery and human trafficking, where our approach to human rights issues is outlined more in
detail. Kemira’s Code of Conduct for Business Partners (CoC-BP), supported by the Kemira

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KEMIRA 2023 | FINANCIAL STATEMENTS | 7
Sustainability Policy, set out principles for responsible business conduct, respect for human
rights, and provision of appropriate working conditions as well as environmental responsibility.
Kemira’s latest Human Rights Impact Assessment was conducted in 2021 to identify human
rights impacts throughout Kemira operations and value chain. Kemira has a Human Rights
Council that oversees and develops Kemira’s human rights related processes. More
information on Kemira’s approach to human rights is available in Kemira’s sustainability
report.
Anti-corruption and bribery
Kemira's anti-corruption principles are included in the Code of Conduct. Kemira does not
tolerate improper or corrupt payments made either directly or indirectly to a customer,
government official, or third party, including facilitation payments, improper gifts,
entertainment, gratuities, favors, donations, or any other improper transfer of value. We
engage only reputable sales representatives and other third parties who share the same
commitment. Code of Conduct training is mandatory for all our employees, and there are
advisory, monitoring, and reporting procedures in place to ensure full compliance with the
Code. We maintain an ethics and compliance Whistleblowing line for employees to enable
them to report potential violations of the Code of Conduct or any other concerns. Mandatory
anti-bribery training is provided for selected groups of personnel who need to have a
comprehensive understanding of Kemira’s anti-corruption principles. Awareness of anti-
corruption matters is delivered through our Code of Conduct training to all employees. Kemira
has conducted an ethics and compliance risk assessment to evaluate corruption-related and
bribery-related risks in its operations. There were no confirmed incidents of corruption in
2023.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 8
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 2023, 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 scope of
the current legislation. Currently it 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 the 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 the water infrastructure.
ACCOUNTING PRINCIPLES
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 C apEx and OpEx, which
are used elsewhere in Kemira’s financial reporting. Kemira has calculated the KPIs based on
the definitions by 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 ECON OMIC
ACT IVITIES (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 | 3383.7 | 0 | 100 | 0 | 100
Capital expenditure (CapEx) as per definition of the EU Taxonomy | 243.9 | 1 | 99 | 0 | 100
Operating expenditure (OpEx) as per definition of the EU Taxonomy | 107.8 | 0 | 100 | 0 | 100

Turnover in EU Taxonomy equals revenue in Kemira's financial reporting. Capex as per definition of the EU taxonomy
equals Kemira's reported capital expenditure added with additions into right-of-use assets. Opex as per 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 in 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 2.6 million CapEx on electric
vehicles in 2023.
Operating expenditure. Kemira had no revenue-related OpEx as the taxonomy-eligible
turnover consisted of industrial by-products for which Kemira does not specifically spend
OpEx on. Based on Kemira's analysis, individually sustainable OpEx** was not material in
2023.
*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

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KEMIRA 2023 | FINANCIAL STATEMENTS | 9
• 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.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 10
TURNOVER

Financial year 2023 | 2023 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |
Economic Activities (1) | Code (a) (2) | Turnover (3) | Proportion of Turnover, year 2023 (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 2022 (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 | 7.0 | 0.2% | 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) |  | 7.0 | 0.2% | 0.2% | 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 | 4.9 | 0.1% | 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) |  | 4.9 | 0.1% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.1% |  |
A. Turnover of Taxonomy eligible activities (A.1+A.2) |  | 11.9 | 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 |  | 3,371.8 | 99.6%
TOTAL |  | 3,383.7 | 100.0%

EL = eligible
N/EL= non-eligible

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CAPEX

Financial year 2023 | 2023 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |
Economic Activities (1) | Code (a) (2) | CapEx (3) | Proportion of CapEx, year 2023 (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 2022 (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 | 0.0 | 0.0% | Y | N/EL | N/EL | N/EL | N/EL | N/EL |  | Y | Y | Y | Y | Y | Y | 0.0% |  |
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.0% |  |
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 | 0.0 | 0.0% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.0% |  |
Transport by motorbikes, passenger cars and light commercial vehicles | 6.5 | 2.6 | 1.1% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.5% |  |
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 2.6 | 1.1% | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.5% |  |
A. CapEx of Taxonomy eligible activities (A.1+A.2) |  | 2.6 | 1.1% | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.5% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CapEx of Taxonomy-non-eligible activities |  | 241.3 | 98.9% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL |  | 243.9 | 100.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

EL = eligible
N/EL= non-eligible

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KEMIRA 2023 | FINANCIAL STATEMENTS | 12
OPEX

Financial year 2023 | 2023 | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |
Economic Activities (1) | Code (a) (2) | OpEx (3) | Proportion of OpEx, year 2023 (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 2022 (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 | 0.0 | 0.0% | Y | N/EL | N/EL | N/EL | N/EL | N/EL |  | Y | Y | Y | Y | Y | Y | 0.0% |  |
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.0% |  |
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 | 0.0 | 0.0% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.0% |  |
Transport by motorbikes, passenger cars and light commercial vehicles | 6.5 | 0.0 | 0.0% | EL | N/EL | N/EL | N/EL | N/EL | N/EL |  |  |  |  |  |  |  | 0.0% |  |
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.0% |  |
A. OpEx of Taxonomy eligible activities (A.1+A.2) |  | 0.0 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |  |  |  |  |  |  |  | 0.0% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OpEx of Taxonomy-non-eligible activities |  | 107.8 | 100.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL |  | 107.8 | 100.0% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

EL = eligible
N/EL= non-eligible

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Sustainability
Kemira's sustainability work covers economical, environmental and social topics and is guided
by the UN's Sustainable Development Goals (SDGs). Our focus is on Clean Water and
Sanitation (SDG6), Decent Work and Economic Growth (SDG8), Responsible Consumption and
Production (SDG12) and Climate Action (SDG13). More information on sustainability at Kemira
can be found in the 2023 Sustainability report.
SUSTAINABILITY PERFORMANCE IN 2023
SAFETY
TRIF* improved slightly to 2.5 in 2023 (2022: 2.6). Kemira will continue its safety-related
activities and projects to improve safety awareness and to steer performance toward the
2024 TRIF target of 1.9.
PEOPLE
Kemira's target is to reach the Glint top 10% of the cross industry benchmark for Diversity,
Equity & Inclusion (DEI) by end of 2025. In 2023, our Inclusion index score improved by 2 points
to 78 and we reached the top 25% (benchmark score of 80 needed to reach cross industry top
10%). In Q4 2023, we continued with DEI workshops, to reach employees at 31/60 manu-
facturing sites. By the end of 2023, over 500 employees had completed the eLearning on DEI
awareness, with positive overall feedback. Kemira's employee engagement score in November
2023 was 80 (74 external manufacturing benchmark) with all items well above the benchmark.
CIRCULARITY
Kemira continued to progress its renewable solutions strategy during 2023 and e.g.
announced the next steps in its partnership with IFF, in December 2023. Renewable solutions
revenue declined slightly to around EUR 230 million following lower prices for renewable sizing
chemicals. In terms of waste reduction, Kemira both began new and continued existing waste
intensity reduction initiatives, the benefits of which are expected to be seen in the coming
years. Waste intensity in 2023 decreased compared to 2022.
WATER
Kemira further improved its water data reporting and data quality during 2023, with a
systematic revision of water balances at all manufacturing sites. In 2023, freshwater use
intensity improved, mostly due to the divestment of the colorants business and lower
production volumes at some water-intensive sites. The CDP Water Security questionnaire
results are expected to be available during Q1 2024..
CLIMATE
In 2023, we continued to develop a near-term Scope 3 emission reduction target, as part of
the Science Based Targets Initiative (SBTi) commitment. Kemira plans to submit the Scope 1
and 2*** and Scope 3 targets to SBTi for validation during H1 2024. In 2023, the absolute
Scope 1 and 2 emissions decreased, in line with the SBTi reduction commitment for 2023. The
decrease in absolute Scope 1+2 emissions is related to our zero-carbon energy sourcing
ambition and to improvements in the carbon footprint of our energy suppliers. Furthermore,
the Scope 1+2 emissions intensity (tons CO 2 e per ton of production) also improved. In January
2023, Kemira launched a Supplier Engagement Program to improve its understanding of the
life cycle impacts associated with its products. One of the key priorities is to collect product
carbon footprint (PCF) and life cycle assessment (LCA) data from raw materials suppliers to
develop actions to reduce CO2 emissions in our value chain.

SDG | KPI | UNIT | 2023 | 2022
| SAFETY |  | 2.5 | 2.6
TRIF* 1.5 by 2025 and 1.1 by the end of 2030 *TRIF = total recordable injury frequency per million hours, Kemira + contractors
| PEOPLE |  | In the top 25% | Slightly below top 25%
Reach top 10% cross industry norm for Diversity & Inclusion by the end of 2025
| CIRCULARITY | kg/tonnes of production | 4.4 | 4.6 1)
Reduce waste intensity** by 15% by the end of 2030 from a 2019 baseline of 4.6 **kilograms of disposed production waste per metric tonnes of production
| Renewable solutions > EUR 500 million revenue by the end of 2030 |  | ~230 | ~250
| WATER | Rate scale A-D | N/A | B
Reach the Leadership level (A) in water management by the end of 2025 measured by CDP Water Security scoring methodology.
| CLIMATE | ktCO 2 e | 625 | 856
Scopes 1 & 2*** emissions -50% by the end of 2030 compared to 2018 baseline of 930 ktCO 2 e

***Scope 1: Direct greenhouse gas emissions from Kemira's manufacturing sites, e.g. the generation of energy and
emissions from manufacturing processes. Scope 2: Indirect greenhouse gas emissions from external generation and
purchase of electricity, heating, cooling, and steam
1) Comparison period figure has been recalculated. More information in the Sustainability report.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 14
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.

EUR million | 2023 | 2022
Revenue | 1,748.2 | 2,027.7
Operative EBITDA | 330.9 | 348.0
Operative EBITDA, % | 18.9 | 17.2
EBITDA | 308.0 | 336.6
EBITDA, % | 17.6 | 16.6
Operative EBIT | 216.3 | 225.7
Operative EBIT, % | 12.4 | 11.1
EBIT | 193.4 | 213.1
EBIT, % | 11.1 | 10.5
Capital employed* | 1,282.0 | 1,337.7
Operative ROCE*, % | 16.9 | 16.9
ROCE*, % | 15.1 | 15.9
Capital expenditure excl. M&A | 124.4 | 122.5
Capital expenditure incl. M&A | 126.2 | 122.5
Cash flow after investing activities | 216.3 | 207.2

*12-month rolling average
The segment’s revenue decreased by 14%. Revenue in local currencies (excluding divestments
and acquisitions) decreased by 11% due to lower sales volumes. Sales volumes decreased in
all product groups following weak market demand, particularly in pulp and bleaching
chemicals. Sales prices declined slightly, again mainly due to lower market prices for pulp and
bleaching chemicals. Beyond pulp and bleaching chemicals, sales prices were rather stable.
The market prices of caustic soda were at a high level during Q1 2023, but then moderated in
Q2-Q4 2023. Currencies had a negative impact.
In EMEA, revenue decreased by 18% to EUR 891.4 million (1,088.6), mainly due to lower sales
volumes, which declined across product groups. Sales prices decreased due to lower market
prices for energy-intensive pulp and bleaching chemicals, including caustic soda.
In the Americas, revenue decreased by 11%, to EUR 573.1 million (647.1). Revenue in local
currencies, excluding acquisitions and divestments, decreased by 6% due to lower sales
volumes across product groups. Sales prices increased.
In APAC, revenue decreased by 3%to EUR 283.6 million (292.0). Revenue in local currencies,
excluding acquisitions and divestments, increased by 2% due to higher sales volumes,
particularly in sizing chemicals. Sales prices declined.
Operative EBITDA decreased by 5%mainly due to lower sales volumes. The operative EBITDA
margin increased to 18.9%, an all-time high. EBITDA decreased by 8%. The difference
between it and operative EBITDA is explained by items affecting comparability, which mainly
consisted of a provision of EUR 12 million related to the expected underutilization of a single-
asset energy company in Pori, Finland, majority owned by Kemira via Pohjolan Voima and a
loss of EUR 10 million from the divestment of most of our colorants business. Items affecting
comparability in the comparison period mainly related to an expected loss from the
divestment of most of our colorants business, environmental provisions, Kemira's exit from
Russia and a manufacturing unit sale to a customer.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 15
INDUSTRY & WATER
Industry & Water supports municipalities and water-intensive industries in the efficient and
sustainable use of resources. In water treatment, Kemira enables the optimization of various
stages of the water cycle. Kemira started to review the strategic options for its Oil & Gas
business in 2023 and completed the divestment of its Oil & Gas business on February 2, 2024.

EUR million | 2023 | 2022
Revenue | 1,635.5 | 1,541.9
Operative EBITDA | 335.8 | 223.7
Operative EBITDA, % | 20.5 | 14.5
EBITDA | 232.0 | 222.2
EBITDA, % | 14.2 | 14.4
Operative EBIT | 246.7 | 135.9
Operative EBIT, % | 15.1 | 8.8
EBIT | 143.0 | 134.5
EBIT, % | 8.7 | 8.7
Capital employed* | 873.5 | 900.3
Operative ROCE*, % | 28.2 | 15.1
ROCE*, % | 16.4 | 14.9
Capital expenditure excl. M&A | 80.5 | 75.4
Capital expenditure incl. M&A | 80.5 | 75.4
Cash flow after investing activities | 242.5 | 100.9

*12-month rolling average
The segment’s revenue increased by 6%. Revenue in local currencies, excluding acquisitions
and divestments, increased by 9%. The increase was driven by higher sales prices in water
treatment. Sales volumes were rather stable. Currencies had a negative impact.
In the water treatment business, revenue increased by 1% due to higher sales
prices. Sales volumes declined, mainly due to soft demand in industrial water treatment.
Revenue in the Oil & Gas business increased by 21%to EUR 457.1 million (377.5), due to higher
sales volumes, particularly in shale. Sales prices decreased.
In EMEA, revenue decreased by 2%to EUR 730.4 million (746.4). Sales volumes decreased,
mainly due to soft demand in industrial water treatment, including mining. Sales prices
increased in water treatment. Currencies had a positive impact.
In the Americas, revenue increased by 15%to EUR 885.1 million (767.1). Revenue in local
currencies, excluding acquisitions and divestments, increased by 19%, following higher sales
volumes in the Oil and Gas business and higher sales prices in water treatment.
In APAC, revenue decreased by 30%to EUR 20.0 million (28.4).
Operative EBITDA increased by 50%following higher sales prices in water treatment. The
operative EBITDA margin increased to a record-high of 20.5%due to strong performance in
water treatment. The operative EBITDA margin also improved in the Oil & Gas business.
Currencies had a negative impact. EBITDA increased by 4% and the difference to operative
EBITDA is explained by items affecting comparability, which were mainly related to the
expected loss of EUR 101 million from the divestment of the Oil & Gas business, including
transaction fees.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 16
The parent company’s financial performance
Kemira Oyj’s revenue decreased to EUR 2,030.4 million (2,206.7) in 2023. EBITDA was EUR
195.7 million (220.4). The parent company’s financing income and expenses were EUR -24.9
million (172.7), following lower dividend income from group companies and the write-off of
group company shares. The net result for the financial year decreased to EUR 104.2 million
(314.7), following lower revenue and increased financing expenses. The total capital
expenditure was EUR 18.2 million (23.2), excluding investments in subsidiaries.
Kemira Oyj had 500 (2022: 502, 2021: 502) employees on average during 2023.
Kemira Oyj’s shares and shareholders
On December 31, 2023, 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 2023, Kemira Oyj had 49,659 registered shareholders (48,403 on
December 31, 2022). Non-Finnish shareholders held 34.7% of the shares (31.5% on December
31, 2022), including nominee-registered holdings. Households owned 19.0% of the shares
(19.3% on December 31, 2022). Kemira held 1,722,725 treasury shares (1,990,197 on December
31, 2022), representing 1.1% (1.3% on December 31, 2022) of all company shares.
Kemira Oyj’s share price increased by 17% during the reporting period and closed at EUR 16.79
on the Nasdaq Helsinki at the end of December 2023 (14.33 on December 31, 2022). The shares
registered a high of EUR 18.22 and a low of EUR 13.51 in January-December 2023, and the
average share price was EUR 15.36. The company’s market capitalization, excluding treasury
shares, was EUR 2,579 million at the end of December 2023 (2,198 on December 31, 2022).
In January-December 2023, Kemira Oyj’s share trading turnover on the Nasdaq Helsinki was
EUR 688 million (EUR 462 million in January-December 2022). The average daily trading
volume was 174,707 shares (146,311 in January-December 2022). The total volume of Kemira
Oyj’s share trading in January-December 2023 was 57 million shares (49 million shares in
January-December 2022), 23% (25% in January-December 2022) of which was executed on
other trading platforms (e.g. Turquoise, CBOE DXE). Source: Nasdaq and Kemira.com.
FLAGGING NOTIFICATIONS
March 1, 2023: The shareholding of Solidium Oy in Kemira decreased to 5.01 per cent.
January 17, 2023: The shareholding of Impax Asset Management Group plc in Kemira
decreased to 4.99 per cent.
Management shareholding
The members of the Board of Directors as well as the Interim President and CEO and his
Deputy held 214,529 (330,988) Kemira Oyj shares on December 31, 2023 or 0.14% (0.21%) of all
outstanding shares and voting rights (including treasury shares and shares held by the related
parties and controlled corporations). Petri Castrén, Interim President and CEO, held 56,140
shares on December 31, 2023. Members of the Management Board, excluding the Interim
President and CEO and his Deputy, held a total of 245,128 shares on December 31, 2023
(237,515), representing 0.16% (0.15%) 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, 2023 | Dec 31, 2022 | Dec 31, 2023 | Dec 31, 2022
Board of Directors | 55,702 | 66,932 | 0.04 | 0.04
Interim President and CEO* | 56,140 | 169,069 | 0.04 | 0.11
CEO's Deputy | 102,687 | 94,987 | 0.07 | 0.06
Members of the Management Board (excl. CEO and CEO's Deputy) | 245,128 | 237,515 | 0.16 | 0.15

*in 2022, the shareholding refers to the previous President and CEO's holding

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KEMIRA 2023 | FINANCIAL STATEMENTS | 17
OWNERSHIP DECEMBER 31, 2023

| % of shares and votes
Owners | 2023 | 2022
Corporations | 26.0 | 25.1
Financial and insurance corporations | 4.0 | 3.7
General government | 13.6 | 17.6
Households | 19.0 | 19.3
Non-profit institutions | 2.7 | 2.9
Non-Finnish shareholders incl. nominee registered | 34.7 | 31.5

SHAREHOLDING BY NUMBER OF SHARES HELD DECEMBER 31, 2023

Number of shares | Number of shareholders | % of shareholders | Shares total | % of shares and votes
1 - 100 | 19,087 | 38.4% | 919,462 | 0.6
101 - 500 | 18,297 | 36.8% | 4,839,778 | 3.1
501 - 1,000 | 5,882 | 11.8% | 4,503,491 | 2.9
1,001 - 5,000 | 5,381 | 10.8% | 11,238,360 | 7.2
5,001 - 10,000 | 574 | 1.2% | 4,126,138 | 2.7
10,001 - 50,000 | 351 | 0.7% | 6,560,370 | 4.2
50,001 - 100,000 | 38 | 0.1% | 2,666,853 | 1.7
100,001 - 500,000 | 33 | 0.1% | 6,160,766 | 4.0
500,001 - 1,000,000 | 7 | 0.0% | 5,296,157 | 3.4
1,000,001 - | 9 | 0.0% | 109,031,182 | 70.2
Total | 49,659 | 100.0% | 155,342,557 | 100.0

LARGEST SHAREHOLDERS DECEMBER 31, 2023

| Shareholder | Number of shares | % of shares and votes
1 | Oras Invest Ltd | 33,553,000 | 21.6
2 | Solidium Oy | 7,782,765 | 5.0
3 | Varma Mutual Pension Insurance Company | 5,332,678 | 3.4
4 | Nordea Funds | 3,896,196 | 2.5
5 | Ilmarinen Mutual Pension Insurance Company | 3,700,000 | 2.4
6 | Elo Mutual Pension Insurance Company | 2,277,000 | 1.5
7 | Etola Group Oy | 1,000,000 | 0.6
8 | Veritas Pension Insurance Company Ltd. | 861,372 | 0.6
9 | Laakkonen Mikko Kalervo | 770,000 | 0.5
10 | Nordea Life Assurance Finland Ltd. | 738,047 | 0.5
11 | The State Pension Funds | 560,000 | 0.4
12 | Paasikivi Pekka Johannes | 462,200 | 0.3
13 | Säästöpankki Funds | 392,194 | 0.3
14 | Valio Pension Fund | 379,450 | 0.2
15 | OP-Henkivakuutus Ltd. | 340,902 | 0.2
| Kemira Oyj | 1,722,725 | 1.1
| Nominee registered and foreign shareholders | 53,835,387 | 34.7
| Others, Total | 37,738,641 | 24.2
| Total | 155,342,557 | 100.0

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 18
SHARE KEY FIGURES

| 2023 | 2022 | 2021 | 2020 | 2019
PER SHARE FIGURES |  |  |  |  |
Earnings per share (EPS), basic, EUR ¹⁾ | 1.30 | 1.51 | 0.71 | 0.86 | 0.72
Earnings per share (EPS), diluted, EUR ¹⁾ | 1.28 | 1.50 | 0.70 | 0.86 | 0.72
Net cash generated from operating activities per share, EUR ¹⁾ | 3.56 | 2.61 | 1.44 | 2.45 | 2.53
Dividend per share, EUR ¹⁾ ²⁾ | 0.68 | 0.62 | 0.58 | 0.58 | 0.56
Dividend payout ratio, % ¹⁾ ²⁾ | 52.4 | 41.0 | 82.2 | 67.5 | 77.6
Dividend yield, % ¹⁾ ²⁾ | 4.1 | 4.3 | 4.4 | 4.5 | 4.2
Equity per share, EUR ¹⁾ | 10.84 | 10.89 | 8.68 | 7.80 | 7.98
Price per earnings per share (P/E ratio) ¹⁾ | 12.95 | 9.48 | 18.88 | 15.07 | 18.37
Price per equity per share ¹⁾ | 1.55 | 1.32 | 1.54 | 1.66 | 1.66
Price per cash flow from operations per share ¹⁾ | 4.72 | 5.49 | 9.27 | 5.28 | 5.24
Dividend paid, EUR million ²⁾ | 104.5 | 95.1 | 88.8 | 88.7 | 85.5
SHARE PRICE AND TRADING |  |  |  |  |
Share price, high, EUR | 18.22 | 14.94 | 14.66 | 14.24 | 14.99
Share price, low, EUR | 13.51 | 10.36 | 12.64 | 8.02 | 9.77
Share price, average, EUR | 15.36 | 12.57 | 13.67 | 11.55 | 12.56
Share price on Dec 31, EUR | 16.79 | 14.33 | 13.33 | 12.94 | 13.26
Number of shares traded (1,000) ³⁾ | 43,852 | 37,017 | 57,478 | 75,885 | 53,048
% on number of shares | 29 | 24 | 38 | 50 | 35
Market capitalization on Dec 31, EUR million ¹⁾ | 2,579 | 2,198 | 2,041 | 1,979 | 2,024
NUMBER OF SHARES AND SHARE CAPITAL |  |  |  |  |
Average number of shares, basic (1,000) ¹⁾ | 153,573 | 153,320 | 153,092 | 152,879 | 152,630
Average number of shares, diluted (1,000) ¹⁾ | 155,051 | 154,261 | 153,785 | 153,373 | 153,071
Number of shares on Dec 31, basic (1,000) ¹⁾ | 153,620 | 153,352 | 153,127 | 152,924 | 152,649
Number of shares on Dec 31, diluted (1,000) ¹⁾ | 155,303 | 154,894 | 154,068 | 153,744 | 153,385
Increase (+) / decrease (-) in number of shares outstanding (1,000) | 267 | 225 | 203 | 275 | 139
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 2023 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 22, 2023, approved the Board of
Directors' proposal for a dividend of EUR 0.62 per share for the financial year 2022. The
dividend was paid in two installments. The first installment of EUR 0.31 per share was paid on
April 5, 2023. The Annual General Meeting authorized the Board of Directors to decide 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 0.31 at its meeting on October 23, 2023. The payment date
of the second installment of the dividend was November 2, 2023. Kemira announced the
resolution of the Board of Directors with a separate stock exchange release and confirmed
the record and the payment dates.
The 2023 AGM authorized the Board of Directors to decide upon the repurchase of a
maximum of 6,000,000 of the company’s own shares. This corresponds to approximately
3.9% of all shares and votes in the company. The shares will 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 in proportion to the existing
shareholdings of the company’s shareholders in public trading on the Nasdaq Helsinki Ltd (the
“Helsinki Stock Exchange”), at the market price quoted at the time of repurchase. The price
paid for the shares repurchased through a tender offer under such an 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 would be the highest market price quoted during
the authorization period. Shares shall be acquired and paid for in accordance with the rules of
the Helsinki Stock Exchange and and the rules of Euroclear Finland Ltd as well as other
applicable regulations. Shares may be repurchased to be used in implementing or financing
mergers and acquisitions, developing the company’s capital structure, improving the liquidity
of the company’s shares, or to be used for the payment of the annual fee payable to the
members of the Board of Directors or implementing the company’s share-based incentive
plans. In order to realize the aforementioned purposes, the shares acquired may be retained,
transferred further or cancelled by the company. The Board of Directors will decide on other
terms related to the share repurchase. The share repurchase authorization is valid until the

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KEMIRA 2023 | FINANCIAL STATEMENTS | 19
end of the next Annual General Meeting. The authorization was not used by December 31,
2023.5
The Annual General Meeting authorized the Board of Directors to decide to issue a maximum
of 15,600,000 new shares (corresponding to approximately 10% of all company shares and
votes) and/or transfer a maximum of 7,800,000 of the company’s own shares (corresponding
to approximately 5% of all company shares and votes) held by the company (“Share issue”).
The new shares may be issued and the company’s own shares held by the company may be
transferred either for consideration or without consideration. The new shares may be issued
and the company's own shares held by the company may be transferred to the company’s
shareholders in proportion to their current shareholdings in the company, or by disapplying
the shareholders’ pre-emption right, through a directed share issue, if the company has a
weighty financial reason to do so, such as financing or implementing mergers and
acquisitions, developing the capital structure of the company, improving the liquidity of the
company’s shares or, if it is justified, for the payment of the annual fee payable to the
members of the Board of Directors or implementing the company’s share-based incentive
plans. The directed share issue may be carried out without consideration only in connection
with the implementation of the company’s share-based incentive plans. The subscription
price of new shares shall be recorded to the invested unrestricted equity reserves. The
consideration payable for the company's own shares shall be recorded to the invested
unrestricted equity reserves. The Board of Directors shall decide upon other terms related to
the share issues. The share issue authorization is valid until May 31, 2024. The share issue
authorization has been used and shares owned by the Group were conveyed to members of
the Board and key employees in connection with remuneration.
The Annual General Meeting decided that the Articles of Association are to be amended by
adding a new article regarding the organization of the general meeting, so that the general
meeting can be held completely without a meeting venue, as a so-called remote meeting.
The Annual General Meeting decided to amend the Charter of the Nomination Board by
adding new sections to the Charter relating to instructions for holders of nominee-registered
shares to use the right to nominate a member to the Nomination Board, to practices when a
qualified shareholder refuses to nominate a member to the Nomination Board or when two or
several qualified shareholders hold an equal number of shares, the unanimity of the
Nomination Board’s decisions as well as to procedures relating to amendments to the
Charter.
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.
Corporate governance and group structure
Kemira Oyj’s corporate governance is based on the Articles of Association, the Finnish
Companies Act and 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 22, 2023, the Annual General Meeting elected eight members to the Board of
Directors. The Annual General Meeting re-elected Tina Sejersgård Fanø, Werner Fuhrmann,
Matti Kähkönen, Timo Lappalainen, Annika Paasikivi and Kristian Pullola and elected Fernanda
Lopes Larsen and Mikael Staffas as new members to the Board of Directors. Matti Kähkönen
was elected as the Chair of the Board of Directors and Annika Paasikivi was elected as the
Vice Chair. In 2023, Kemira’s Board of Directors met 13 times, with a 98% 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 Matti Kähkönen and has Tina Sejersgård Fanø, Timo Lappalainen,
Annika Paasikivi and Mikael Staffas as members. In 2023, the Personnel and Remuneration
Committee met 4 times, with a 95% attendance rate. The Audit Committee is chaired by Timo
Lappalainen and has Werner Fuhrmann, Fernanda Lopes Larsen and Kristian Pullola as
members. In 2023, the Audit Committee met 5 times, with a 100% attendance rate.
STRUCTURE
In 2023, Kemira divested the majority of its colorants business and its Oil & Gas-related
portfolio. The divestment of the colorants business was closed on May 5, 2023, while the
divestment of the Oil & Gas business was closed after the review period on February 2, 2024.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 20
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 to product
prices without delay. For instance, considerable and/or rapid changes in oil, energy, and
electricity prices could materially impact Kemira’s profitability. Changes in the raw material
supplier field, such as 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 fluctu ations. In 2023, raw material and
commodity prices decreased compared to 2022. Energy and electricity prices also stabilized
in Europe as market turmoil caused by the war in Ukraine largely dissipated. In Europe,
electricity prices are expected to remain above long-term average levels, with seasonal
variation.
Poor availability of certain raw materials may affect Kemira’s production and also profitability
if Kemira fails to prepare for this by mapping out alternative suppliers or opportunities for
process changes. Raw material and commodity related risks can be effectively monitored and
managed by Kemira's centralized Sourcing unit. Risk management measures include, for
instance, forward-looking forecasting of key raw materials and commodities, synchronization
of raw material purchase agreements and sales agreements, captive manufacturing of some
of the critical raw materials, strategic investment in energy-generating companies and
hedging a portion of the energy and electricity spe nd. In 2023, Kemira demonstrated good
resilience in managing raw material risks.
During 2023, energy markets in Europe stabilized to a large extent and improved their
resilience related to the war in Ukraine. Nevertheless, Kemira continues to monitor the
situation closely.
SUPPLIERS
The continuity of Kemira’s business operations is dependent on the accurate supply of good-
quality products and services. Kemira currently has in place numerous partnerships and other
agreements with third-party product and service suppliers to secure its business continuity.
Certain products used as raw materials are considered critical as the purchase can be made
economically only from a sole or 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 could have a negative effect on Kemira. 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. The
war in Ukraine or the COVID-19 pandemic did not cause significant impacts to Kemira’s
manufacturing operations in 2023. Disruptions to energy availability or changes in energy
pricing could increase counterparty risk in energy hedging. Kemira is monitoring the energy
counterparty risk actively and has been reducing exposure to this risk during 2023.
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 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 related 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, which in turn could lead to financial losse s 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
again st the financial impacts of hazard risks.
Kemira continuously monitors, assesses and upgrades its cyber security for workstations,
customer equipment and cloud services and actively trains and educates its personnel on

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KEMIRA 2023 | FINANCIAL STATEMENTS | 21
detecting and reporting on possible cyber security threats. Kemira's Board of Directors
regularly reviews cyber security risks.
Kemira's operations rely on functional and up-to-date IT systems. Kemira successfully
completed its group-wide enterprise resource planning system renewal during 2023, without
any negative impact on Kemira's operations.
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, gas, and metals) may shift customers’ activities towards areas where fewer
chemicals are needed. Also, increasing awareness of and concern about climate change and
more sustainable products may alter customer demand, for instance, in favor of water
treatment technologies with lower chemical consumption. On the other hand, possible
capacity expansion by customers could increase chemical consumption and could challenge
Kemira’s current production capacity.
In order to manage and mitigate this risk, Kemira systematically monitors leading and early
warning indicators that focus on market development. 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 a nd Sales units, in order to better understand the
future needs and expectations of its customers. During 2023, Kemira's new Growth
Accelerator unit has initiated the first projects intended to accelerate the commercialization
of new, renewable solutions. 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 changed customer demands.
To respond to expected changes in customer requirements, Kemira has also revised its
strategy to focus more on renewable solutions and has 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 invest in renewable solutions projects, the commercialization of which involves
risks related to e.g. market demand.
ECONOMIC CONDITIONS AND GEOPOLITICAL CHANGES
Uncertainties in global economic and geopolitical development 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. Possible extended strikes in Finland could create near-term risks to customer
demand or to Kemira's ability to run its operations. The ongoing war in Ukraine, sanctions
against Russia as well as rising geopolitical tensions in the Middle East have increased
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, has several local manufacturing facilities and
derives around 10% of its revenue from the APAC region. Kemira does not have meaningful
operations in the Middle East but could be exposed to e.g. supply chain disruptions.
Weak economic development may bring about customer closures or consolidations, resulting
in a diminishing customer base. The liquidity of Kemira’s customers could weaken, resulting in
increased credit losses for Kemira. Despite the increased economic uncertainty in 2023,
Kemira did not see material credit losses. 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 aims to adjust its business
accordingly. Trade war-related risks are also actively monitored and taken into account.
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 key
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 change Kemira’s market position.
Kemira is seeking growth in product categories that are 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 continuous monitoring of markets and
competitors. The company aims to respond to its competition through the active

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 22
management of customer relationships and continuous development of its products and
services, to further differentiate itself from competitors and to be competitive.
ACQUISITIONS
In addition to organic growth, acquisitions are a potential way to achieve corporate goals and
strategies. Consolidations are driven by chemical manufacturers’ interests in realizing
synergies and establishing footholds in new markets. Acquisitions and/or partnerships may
also be needed in order to enter totally new geographical markets or new product markets.
However, the integration of acquired businesses, operations and personnel also involves risks.
If integration is unsuccessful, the results may fall short of the targets for such acquisitions.
Kemira has created mergers and acquisitions procedures and has established Group-level
resources dedicated to actively managing merger and acquisition activities and to supporting
the execution of its business transactions. In addition, external advisory services are used to
screen potential merger and acquisition targets.
INNOVATION AND RESEARCH & DEVELOPMENT
Kemira’s research and development is a critical enabler o f organic growth and further
differentiation. Kemira’s future market position and profitability depend on its ability to
understand and 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 Kemira’s and its customers’ processes, as
well as to improved profitability. Failure to innovate or focus on disruptive new technologies
and products, or to effectively commercialize new products or service concepts may result in
the non-achievement of growth targets and may 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. There is close
coordination and cooperation between the Business Development, R&D and the Sales and
Marketing units in order to better understand the future needs and expectations of Kemira's
customers. During 2023, Kemira's new Growth Accelerator unit initiated the first projects to
accelerate the commercialization of new renewable solutions. With the continuous
development of innovation processes, Kemira is aiming for more effective and stringent
project execution. Kemira continues to foc us on the development of more differentiated and
sustainable products and processes and is also continuously monitoring the sales of its new
products and applications.
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 where tightening regulation is expected to drive
water treatment market growth, for example phosphorus removal of effluent before
discharging to recipient. 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 for plastic packaging would likely benefit the fiber-based packaging
industry and therefore also 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 busines s. 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. In addition, the changes in
import/export and customs-related regulations create the 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.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 23
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 business. For example, there are currently many regulatory
discussions ongoing in the EU, as the EU is conducting a major review of its water legislation
and directives. This may have a positive demand-related impact for Kemira in the future, due
to the need for water to be treated more carefully. The EU has launched several initiatives,
such as the EU Chemicals Strategy for Sustainability (CSS) and the Fit-for-55 program as part
of its Green Deal policy. Kemira is closely following these initiatives and their potential
implications for the chemicals sector and for Kemira. We expect the first contours to become
visible during 2024.
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 skills and
competence. Kemira is continuously identifying 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 of skilled personnel in the future.
CLIMATE-RELATED RISKS
Kemira has identified certain climate-related risks that could have an impact on Kemira’s
operations or on customer demand. Increased awareness of and concern about climate
change and more sustainable products may, for example, change customer demand in favor
of water treatment technologies with lower chemical consumption. Higher awareness of the
impacts of climate change could lead to a more rapid transition to sustainable, fossil-free
energy sources, which could lead to higher energy prices and subsequently impact the
availability of energy. This could have a negative impact on Kemira as parts of Kemira’s
manufacturing operations are energy-intensive. A part 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 enterprise risk
management portfolio and active monitoring and mitigation planning continues. In 2023,
Kemira continued efforts on climate risk scenario analysis, in accordance with the Task Force
on Climate-related Financial Disclosures (TCFD) framework. A climate risk assessment for
Kemira's own manufacturing locations is planned for late 2023 and early 2024.
RISKS AND IMPACTS OF THE WAR IN UKRAINE
Following the war in Ukraine, Kemira exited Russia in May 2022. At the end of December 2023,
Kemira's net assets in Russia amounted to around EUR 5 million and consisted mainly of cash
and cash equivalents denominated in Russian roubles. Kemira is working to repatriate funds
from Russia.
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 2023.
Dividend policy and dividend distribution
On December 31, 2023, Kemira Oyj’s distributable funds totaled EUR 713,680,177 of which net
profit for the period was EUR 104,191,302. 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, 2024 that a dividend of EUR 0.68 per share, totaling EUR 104 million, be paid on the basis
of the adopted balance sheet for the financial year that ended on December 31, 2023. The
dividend will be paid in two installments. The first installment, EUR 0.34 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 22, 2024. The Board
of Directors proposes that the first installment of the dividend be paid out on Apr il 4, 2024.The
second installment, of EUR 0.34 per share, will be paid in November 2024. The second
installment 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. The
Board of Directors will decide the record date and the payment date for the second
installment at its meeting in October 2024. The record date is planned for October 29, 2024,
and the dividend payment date for November 5, 2024 at the earliest. Kemira’s dividend policy
is to pay a competitive dividend that increases over time.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 24
Changes in Kemira's Management Board
On Decem ber 19, 2023,Kemira announced that Antti Salminen was appointed as President
and CEO, as of February 12, 2024.
On A ugust 1, 20 23, Kemira announced that President & CEO Jari Rosendal had passed away
unexpectedly on July 31, after a short illness. On July 18, 2023 Kemira announced that the
Board of Directors and President & CEO Jari Rosendal had reached an agreement that he
would leave his position in 2024 at the latest and that the Board of Directors would initiate a
search for his successor. CFO Petri Castrén will act as Interim President & CEO until the new
President & CEO starts in the position. On July 11, 2023, Kemira announced that President &
CEO Jari Rosendal is on sick leave. Kemira Oyj’s Group General Counsel, CEO's Deputy Jukka
Hakkila assumed the duties of President & CEO in the period July 11, 2023 to July 17, 2023 until
Petri Castrén was appointed as Interim President & CEO.
On March 21, 2023, Kemira announced that Tuija Pohjolainen-Hiltunen was appointed as
President, Industry & Water segment, as of May 1, 2023.
On February 1, 2023, Kemira announced that Linus Hildebrandt was appointed as Executive
Vice President, Strategy. He started on June 1, 2023.
Other events during the review period
PROPOSALS OF THE NOMINATION BOARD TO THE ANNUAL
GENERAL MEETING 2024
On December 21, 2023, Kemira announced the proposals of the Nomination Board to the
Annual General Meeting 2023.
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, Matti Kähkönen, Timo Lappalainen, Fernanda Lopes Larsen, Annika
Paasikivi, Kristian Pullola and Mikael Staffas be re-elected as members of the Board of
Directors. In addition, the Nomination Board proposes that Matti Kähkönen be re-elected as
the Chair of the Board of Directors and that Annika Paasikivi be re-elected as the Vice Chair.
All the nominees have consented to the positions and are independent of the company’s
significant shareholders, with the exception of Annika Paasikivi. Annika Paasikivi is the
President & CEO of Oras Invest Oy and Oras Invest Oy owns over 10% of Kemira Oyj’s shares.
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 required by the company, that the diversity principles of
the company will be met and that the composition of the Board of Directors meets the 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
125,000 per year (EUR 118,000), for the Vice Chair and the Chair of the Audit Committee EUR
70,000 per year (EUR 67,000), for the Chair of the Personnel and Remuneration Committee (if
the person is not the Chair or Vice Chair of the Board of Directors) EUR 65,000 per year (new)
and for the other members EUR 54,000 per year (EUR 52,000).
The Nomination Board proposes that the fee payable for each meeting of the Board of
Directors and the Board Committees will be increased and will be paid based on the method
of participation and the location of the meeting, as follows: participating remotely or in a
meeting arranged in the member’s country of residence EUR 750 (EUR 600), participating in a
meeting arranged on the same continent as the member’s country of residence EUR 1,500
(EUR 1,200) and participating in a meeting arranged on a different continent than the
member’s country of residence EUR 3,000 (EUR 2,400). Travel expenses are proposed to be
paid in accordance with 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

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 25
behalf of the members of the Board of Directors within two weeks of the release of Kemira's
interim report January 1 – March 31, 2024. The meeting fees are proposed to be paid in cash.
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; Pauli Anttila,
Investment Director, Solidium Oy; Lisa Beauvilain, Global Head of Sustainability &
Stewardship, Executive Director, Impax Asset Management plc and Hanna Kaskela, Senior
Vice President, Sustainability & Communications, Varma Mutual Pension Insurance Company
as members of the Nomination Board and Matti Kähkönen, Chair of Kemira's Board of
Directors as an expert member.
Acquisitions and divestments
On December 4, 2023, Kemira announced that it has 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 May 5, 2023, Kemira announced the closing of the divestment of most of its colorants
business to ChromaScape.
On January 25, 2023, Kemira announced that it had acquired SimAnalytics, a Finnish process
optimization start-up. Kemira invested in SimAnalytics in August 2021 and has now acquired
the remainder of the business. The acquisition will support Kemira's ambition to grow in
services, with data-driven predictive services and machine learning solutions.
Events after the review period
On February 2, 2024, Kemira announced that it had closed the divestment of its Oil & Gas
related portfolio. Approximately 250 employees will transfer to the buyer as part of the
transaction, which includes Kemira’s manufacturing facilities in Mobile, Columbus and
Aberdeen in the United States and the novel liquid polymer (NLP) manufacturing assets in
Botlek, the Netherlands. The closing of the Teesport manufacturing facility in the United
Kingdom is expected to happen later, subject to site-specific closing conditions.
Outlook for 2024
REVENUE
Kemira's revenue is expected to be between EUR 2,700 million and EUR 3,200 million in 2024
(reported 2023 revenue: EUR 3,383.7 million).
OPERATIVE EBITDA
Kemira's operative EBITDA is expected to be between EUR 480 and EUR 580 million in 2024
(reported 2023 operative EBITDA: EUR 666.7 million).
ASSUMPTIONS BEHIND THE OUTLOOK
Kemira’s end-market demand (in volumes) is expected to grow slightly in 2024 following
expected gradual demand recovery in the pulp & paper market. The water treatment market is
expected to remain steady in 2024. Input costs are expected to remain rather stable during
the year. The outlook assumes no major disruptions to Kemira’s manufacturing operations,
supply chain or to Kemira’s energy-generating assets in Finland. Foreign exchange rates are
expected to remain at approximately current levels. The outlook for 2024 includes the Oil &
Gas business until February 2, 2024, the closing date of the divestment transaction.
Financial targets
Kemira aims for above-market revenue growth, with an operative EBITDA margin of 15-18%.
The target for gearing is below 75%.
Helsinki, February 8, 2024
Kemira Oyj
Board of Directors
All forward-looking statements in this review are based on the management’s current
expectations and beliefs about future events. Actual results may differ materially from the
expectations and beliefs contained in the statements.

BOARD OF DIRECTORS' REVIEW

KEMIRA 2023 | FINANCIAL STATEMENTS | 26
Consolidated
Income Statement

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Revenue | 2.1. | 3,383.7 | 3,569.6
Other operating income | 2.2. | 8.6 | 18.2
Operating expenses | 2.2. | -2,852.3 | -3,029.3
Share of the results of associates | 6.2. | 0.1 | 0.3
EBITDA |  | 540.0 | 558.8
Depreciation, amortization and impairments | 2.4. | -203.6 | -211.2
Operating profit (EBIT) |  | 336.4 | 347.6
Finance income | 2.5. | 12.7 | 4.8
Finance expenses | 2.5. | -49.3 | -42.3
Exchange differences | 2.5. | -7.7 | -1.9
Finance costs, net | 2.5. | -44.4 | -39.4
Profit before tax |  | 292.0 | 308.2
Income taxes | 2.6. | -80.7 | -68.5
Net profit for the period |  | 211.3 | 239.7
Net profit attributable to |  |  |
Equity owners of the parent company |  | 199.1 | 231.7
Non-controlling interests | 6.2. | 12.2 | 8.0
Net profit for the period |  | 211.3 | 239.7
Earnings per share for net profit attributable to the equity owners of the parent company, EUR |  |  |
Basic | 2.7. | 1.30 | 1.51
Diluted | 2.7. | 1.28 | 1.50

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.
Consolidated
Comprehensive Income

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Net profit for the period |  | 211.3 | 239.7
Other comprehensive income |  |  |
Items that may be reclassified subsequently to profit or loss |  |  |
Exchange differences in translating foreign operations |  | -16.9 | 17.5
Cash flow hedges |  | -54.1 | 39.2
Items that will not be reclassified subsequently to profit or loss |  |  |
Other shares |  | -61.3 | 98.6
Remeasurements of defined benefit plans |  | 18.9 | 31.8
Other comprehensive income for the period, net of tax | 2.8. | -113.4 | 187.1
Total comprehensive income for the period |  | 97.9 | 426.7
Total comprehensive income attributable to |  |  |
Equity owners of the parent company |  | 84.9 | 418.9
Non-controlling interests | 6.2. | 13.0 | 7.8
Total comprehensive income for the period |  | 97.9 | 426.7

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 Comprehensive Income should be read in conjunction with the accompanying notes.

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 27
Consolidated Balance Sheet

|  | As at 31 December
EUR million | Note | 2023 | 2022
ASSETS |  |  |
NON-CURRENT ASSETS |  |  |
Goodwill | 3.1. | 480.9 | 510.5
Other intangible assets | 3.2. | 51.1 | 61.2
Property, plant and equipment | 3.3. | 939.6 | 1,080.2
Right-of-use assets | 3.4. | 123.0 | 146.0
Investments in associates | 6.2. | 4.8 | 5.1
Other shares | 3.5. | 305.4 | 383.3
Deferred tax assets | 4.4. | 31.8 | 27.1
Other financial assets | 5.4. | 7.9 | 31.0
Receivables of defined benefit plans | 4.5. | 106.3 | 78.4
Total non-current assets |  | 2,050.9 | 2,322.8
CURRENT ASSETS |  |  |
Inventories | 4.1. | 281.8 | 433.7
Interest-bearing receivables | 5.4. | 0.3 | 0.3
Trade receivables and other receivables | 4.2. | 468.2 | 603.7
Current income tax assets |  | 29.9 | 18.7
Cash and cash equivalents | 5.4. | 402.5 | 250.6
Total current assets |  | 1,182.7 | 1,307.0
Assets classified as held-for-sale | 3.7. | 255.6 | 21.3
Total assets |  | 3,489.3 | 3,651.1

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

|  | As at 31 December
EUR million | Note | 2023 | 2022
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 |  | 163.4 | 278.8
Unrestricted equity reserve |  | 196.3 | 196.3
Translation differences |  | -53.8 | -36.0
Treasury shares |  | -11.6 | -13.4
Retained earnings |  | 890.9 | 764.5
Total equity attributable to equity owners of the parent company | 5.2. | 1,664.8 | 1,669.9
Non-controlling interests | 6.2. | 19.4 | 14.7
Total equity |  | 1,684.2 | 1,684.6
NON-CURRENT LIABILITIES |  |  |
Interest-bearing liabilities | 5.3. | 615.7 | 838.1
Other financial liabilities | 5.4. | 10.8 | 9.4
Deferred tax liabilities | 4.4. | 81.3 | 118.2
Liabilities of defined benefit plans | 4.5. | 69.8 | 66.9
Provisions | 4.6. | 37.8 | 38.4
Total non-current liabilities |  | 815.4 | 1,070.9
CURRENT LIABILITIES |  |  |
Interest-bearing liabilities | 5.3. | 322.1 | 183.7
Trade payables and other liabilities | 4.3. | 489.4 | 635.2
Current income tax liabilities |  | 56.6 | 57.2
Provisions | 4.6. | 16.9 | 18.8
Total current liabilities |  | 884.9 | 894.9
Total liabilities |  | 1,700.3 | 1,965.8
Liabilities classified as held-for-sale | 3.7. | 104.8 | 0.7
Total equity and liabilities |  | 3,489.3 | 3,651.1

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 28
Consolidated Statement of Cash Flow

EUR million | Note | 2023 | 2022
CASH FLOW FROM OPERATING ACTIVITIES |  |  |
Net profit for the period |  | 211.3 | 239.7
Adjustments for |  |  |
Depreciation, amortization and impairments | 2.4. | 203.6 | 211.2
Income taxes | 2.6. | 80.7 | 68.5
Finance costs, net | 2.5. | 44.4 | 39.4
Share of the results of associates | 6.2. | -0.1 | -0.3
Gains and losses on sale of non-current assets |  | 98.6 | 5.5
Other adjustments |  | 2.1 | 23.8
Cash flow before change in net working capital |  | 640.7 | 587.8
Change in net working capital |  |  |
Increase (-) / decrease (+) in inventories |  | 97.6 | -100.3
Increase (-) / decrease (+) in trade and other receivables |  | 19.0 | -95.1
Increase (+) / decrease (-) in trade payables and other liabilities |  | -101.7 | 93.7
Change in net working capital |  | 14.9 | -101.8
Cash flow from operations before financing items and taxes |  | 655.6 | 486.0
Interests paid |  | -41.6 | -35.1
Interests received |  | 8.0 | 5.0
Other finance items, net |  | 14.7 | -22.1
Income taxes paid |  | -90.8 | -33.5
Net cash generated from operating activities |  | 546.0 | 400.3

The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.

EUR million | Note | 2023 | 2022
CASH FLOW FROM INVESTING ACTIVITIES |  |  |
Purchases of subsidiaries and asset acquisitions, net of cash acquired |  | -1.9 | 0.0
Capital expenditure in property, plant and equipment and intangible assets |  | -204.9 | -197.9
Decrease (+) / increase (-) in loan receivables |  | 0.4 | 0.8
Proceeds from sale of subsidiaries and businesses, net of cash disposed |  | 9.0 | 0.0
Proceeds from sale of other shares |  | 0.4 | 0.0
Proceeds from sale of property, plant and equipment, and intangible assets |  | 0.2 | 19.1
Net cash used in investing activities |  | -196.7 | -178.0
CASH FLOW FROM FINANCING ACTIVITIES |  |  |
Proceeds from non-current interest-bearing liabilities (+) | 5.1. | 0.2 | 195.9
Repayments of non-current interest-bearing liabilities (-) | 5.1. | 0.0 | -202.8
Short-term financing, net increase (+) / decrease (-) | 5.1. | -50.7 | 21.4
Repayments of lease liabilities |  | -37.3 | -35.1
Dividends paid to equity owners of the parent company |  | -95.2 | -88.9
Dividends paid to non-controlling interest |  | -8.3 | -7.0
Net cash used in financing activities |  | -191.3 | -116.4
Net increase (+) / decrease (-) in cash and cash equivalents |  | 158.0 | 105.9
Cash and cash equivalents on Dec 31 |  | 402.5 | 250.6
Exchange gains (+) / losses (-) in cash and cash equivalents |  | -6.1 | 2.3
Cash and cash equivalents on Jan 1 |  | 250.6 | 142.4
Net increase (+) / decrease (-) in cash and cash equivalents |  | 158.0 | 105.9

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 29
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, 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

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 30

| Equity attributable to equity owners of the parent company |  |
EUR million | Share capital | Share premium | Fair value and other reserves | Unrestricted equity reserve | Exchange differences | Treasury shares | Retained earnings | Total | Non- controlling interests | Total equity
Equity on January 1, 2022 | 221.8 | 257.9 | 140.9 | 196.3 | -53.7 | -14.9 | 580.5 | 1,328.8 | 13.9 | 1,342.7
Net profit for the period | — | — | — | — | — | — | 231.7 | 231.7 | 8.0 | 239.7
Other shares | — | — | 98.6 | — | — | — | — | 98.6 | — | 98.6
Exchange differences in translating foreign operations | — | — | — | — | 17.7 | — | — | 17.7 | -0.2 | 17.5
Cash flow hedges | — | — | 39.2 | — | — | — | — | 39.2 | — | 39.2
Remeasurements of defined benefit plans | — | — | — | — | — | — | 31.8 | 31.8 | — | 31.8
Total other comprehensive income | — | — | 137.8 | — | 17.7 | — | 31.8 | 187.3 | -0.2 | 187.1
Total comprehensive income | — | — | 137.8 | — | 17.7 | — | 263.5 | 418.9 | 7.8 | 426.7
Transactions with owners |  |  |  |  |  |  |  |  |  |
Dividends paid | — | — | — | — | — | — | -88.9 | -88.9 | -7.0 | -95.9
Treasury shares issued to the target group of a share- based incentive plan | — | — | — | — | — | 1.5 | — | 1.5 | — | 1.5
Treasury shares issued to the Board of Directors | — | — | — | — | — | 0.1 | — | 0.1 | — | 0.1
Treasury shares returned | — | — | — | — | — | 0.0 | — | 0.0 | — | 0.0
Share-based payments | — | — | — | — | — | — | 9.2 | 9.2 | — | 9.2
Transfers in equity | — | — | 0.1 | — | — | — | -0.1 | 0.0 | — | 0.0
Other items | — | — | — | — | — | — | 0.4 | 0.4 | — | 0.4
Total transactions with owners | — | — | 0.1 | — | — | 1.6 | -79.4 | -77.7 | -7.0 | -84.7
Equity on December 31, 2022 | 221.8 | 257.9 | 278.8 | 196.3 | -36.0 | -13.4 | 764.5 | 1,669.9 | 14.7 | 1,684.6

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 31
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, and its registered address is
Energiakatu 4, FI-00180 Helsinki, Finland. Kem ira 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 segments, Pulp & Paper and Industry & Water, focus on
customers in the pulp & paper and oil & gas, mining 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 8, 2024. 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, 2023. 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 INTO EFFECT IN
2023
The Group has applied the following standards and
amendments for the first time to its annual reporting period
commencing January 1, 2023:
• Amendments to the standard IAS 12, Income taxes:
Deferred taxes related to assets and liabilities arising from
a single transaction. As a result of the amendments,
deferred taxes have also been recognized in connection
with initial recognition of the leases for new lease
contracts ( Note 4.4. Deferred tax liabilities and assets).
• Amendments to the standard IAS 1, Presentation of
financial statements: Disclosure of accounting policies.
The amendment clarifies in which situations the
accounting policy is material and it must be disclosed. The
amendment did not have any significant impact on the
Consolidated Financial Statements.
• Amendments to the standard IAS 8, Accounting policies,
changes and errors in accounting estimates: Definition of
accounting estimates. The amendment clarifies the
definition and application of the accounting estimates.
The amendments did not have any significant impact on
the Consolidated Financial Statements.
• Amendments to IAS 12 Income taxes: International Tax
Reform – Pillar Two Model Rules. Pillar Two Model Rules
will come into effect in Finland by 1 January 2024 with a
legislation implementing a Council Directive ensuring a
global minimum level of taxation for multinational
enterprise groups and large-scale domestic groups (Pillar

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KEMIRA 2023 | FINANCIAL STATEMENTS | 32
Two). The amendment to IAS 12 requires to disclose that
the exception on recognizing and disclosing information
about deferred tax assets and liabilities that are related to
the Pillar Two income taxes has been applied. Kemira has
applied the exception provided in IAS12, and it has not
recognized or disclosed information on deferred tax
assets or liabilities related to Pillar Two income taxes. It is
not expected that Pillar Two has an impact on the amount
of the Group's income taxes.
NEW, AMENDED IFRS STANDARDS AND
IFRIC INTERPRETATIONS NOT YET
ADOPTED
• 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.
• 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.
• 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
enables investors to assess the effects on a company's
liabilities, cash flow, and exposure to liquidity risk.
• Amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates: Lack of Exchangeability. The amendment
provides guidance for identifying a situation where a
currency cannot be considered freely exchangeable and
guides in these situations to take this into account in the
exchange rate used in reporting and provide additional
information on the matter.
New IFRS standards, amendments to standards and IFRIC
interpretations effective on or after January 1, 2024 are not
expected to have a material impact on the Group.
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 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
the 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. 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 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 in 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 and non-controlling interests are 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 separately from the
equity to the equity holders of the parent company. Total
comprehensive income shows separately the total amounts
attributable to the equity holders of the parent company and
to non-controlling interests. The Group recognizes negative
non-controlling interests, unless the non-controlling interest
does not have a binding obligation to cover the 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.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 33
ASSOCIATES
Associated companies are companies over which the Group
exercises significant influence (voting rights generally being
20–50 percent), but 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 movements of its
associates in other comprehensive income is recognized in
the Group’s other comprehensive income.
FOREIGN CURRENCY TRANSLATION
The Consolidated Financial Statements are presented in
euros, which is the Group’s presentation currency and 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 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 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 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 estimate will seldom be
equal to the actual results. In addition, management is
required to exercise judgment when applying the accounting
policies.
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

EFFECTS OF THE UKRAINE WAR ON THE
FINANCIAL STATEMENTS
Following the war in Ukraine, Kemira exited Russia in May
2022. At the end of December 2023, Kemira's net assets in
Russia amounted to around EUR 5 million and consisted
mainly of cash and cash equivalents denominated in Russian
roubles. Kemira is working to repatriate funds from Russia.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 34
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 and an
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).
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 measured.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 35
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 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. In the oil and gas industry, the segment helps to improve
yield from existing reserves and reduce water and energy use.
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 is disclosed in the section
Definitions of key figures.
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 | -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 is 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 | 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 | 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

Quarterly information on items affecting comparability is disclosed in the section on Reconciliation of IFRS figures.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 36
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.
INCOME STATEMENT ITEMS

2022, EUR million | Pulp & Paper | Industry & Water | Group
Revenue ¹⁾ | 2,027.7 | 1,541.9 | 3,569.6
EBITDA ²⁾ | 336.6 | 222.2 | 558.8
Depreciation, amortization and impairments ²⁾ | -123.5 | -87.8 | -211.2
Share of the results of associates | 0.3 | 0.0 | 0.3
Operating profit (EBIT) ²⁾ | 213.1 | 134.5 | 347.6
Finance costs, net |  |  | -39.4
Profit before tax |  |  | 308.2
Income taxes |  |  | -68.5
Net profit for the period |  |  | 239.7

1) Revenue consists mainly of sales of products to external customers, and there is no internal sales between the
segments.
2) Includes items affecting comparability.
ITEMS AFFECTING COMPARABILITY IN EBITDA AND EBIT

2022, EUR million | Pulp & Paper | Industry & Water | Group
Operative EBITDA | 348.0 | 223.7 | 571.6
Restructuring and streamlining programs |  |  | -4.5
Transaction and integration expenses in acquisitions |  |  | 0.0
Divestment of businesses and other disposals |  |  | -4.6
Other items |  |  | -3.6
Total items affecting comparability | -11.4 | -1.4 | -12.8
EBITDA | 336.6 | 222.2 | 558.8
Operative EBIT | 225.7 | 135.9 | 361.6
Items affecting comparability in EBITDA | -11.4 | -1.4 | -12.8
Items affecting comparability in depreciation, amortization and impairments | -1.2 | 0.0 | -1.2
Operating profit (EBIT) | 213.1 | 134.5 | 347.6

Quarterly information on items affecting comparability is disclosed in the section Reconciliation of IFRS figures.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 37
BALANCE SHEET ITEMS

2022, EUR million | Pulp & Paper | Industry & Water | Group
Segment assets | 1,629.4 | 1,139.8 | 2,769.2
Reconciliation to total assets as reported in the Group balance sheet: |  |  |
Other shares |  |  | 383.3
Deferred income tax assets |  |  | 27.1
Other investments |  |  | 31.0
Defined benefit pension receivables |  |  | 78.4
Other assets |  |  | 111.5
Cash and cash equivalents |  |  | 250.6
Assets classified as held-for-sale |  |  | 21.3
Total assets |  |  | 3,651.1
Segment liabilities | 354.9 | 249.0 | 603.9
Reconciliation to total liabilities as reported in the Group balance sheet: |  |  |
Interest-bearing non-current financial liabilities |  |  | 838.1
Interest-bearing current financial liabilities |  |  | 183.7
Other liabilities |  |  | 340.1
Liabilities classified as held-for-sale |  |  | 0.7
Total liabilities |  |  | 1,966.5

OTHER ITEMS

2022, EUR million | Pulp & Paper | Industry & Water | Group
Capital employed by segments on Dec 31 | 1,274.6 | 890.8 | 2,165.3
Capital employed by segments ¹⁾ | 1,337.7 | 900.3 | 2,238.0
Operative ROCE, % | 16.9 | 15.1 | 16.2
Capital expenditure | 122.5 | 75.4 | 197.9
Cash flow after investing activities ²⁾ | 207.2 | 100.9 | 222.3

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 | 2023 | 2022
Finland, domicile of the parent company | 448.1 | 546.5
Other Europe, Middle East and Africa | 1,171.9 | 1,286.0
Americas | 1,458.8 | 1,413.6
Asia Pacific | 304.9 | 323.5
Total | 3,383.7 | 3,569.6

NON-CURRENT ASSETS BY GEOGRAPHICAL AREA

EUR million | 2023 | 2022
Finland, domicile of the parent company | 821.9 | 918.9
Other Europe, Middle East and Africa | 441.7 | 499.0
Americas | 483.2 | 619.7
Asia Pacific | 166.0 | 179.7
Total | 1,912.8 | 2,217.3

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 2023 or 2022.
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
l iabilities. Geographically, Kemira’s operations are divided into three busine ss regions:
Europe, the Middle East and Africa (EMEA), the Americas and the Asia Pacific (APAC).

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KEMIRA 2023 | FINANCIAL STATEMENTS | 38
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 2023 and 2022, 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 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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KEMIRA 2023 | FINANCIAL STATEMENTS | 39
2.2 OTHER OPERATING INCOME AND EXPENSES
OTHER OPERATING INCOME

EUR million | 2023 | 2022
Gains on the sale of non-current assets ¹⁾ | 0.1 | 10.8
Rental income | 0.7 | 0.6
Services | 3.1 | 2.0
Other income from operations ²⁾ | 4.8 | 4.8
Total | 8.6 | 18.2

1) In 2022, gains on the sale of non-current assets relate mainly to sold assets in Uruguay.
2) Other income from operations consists mainly of insurance compensations in 2023 and of indirect tax credits in Brazil
in 2022.
OPERATING EXPENSES

EUR million | 2023 | 2022
Materials and supplies ³⁾ | 1,754.2 | 2,033.0
Employee benefit expenses | 440.8 | 428.9
External services and other expenses ⁴⁾ ⁵⁾ | 440.5 | 332.0
Freights and delivery expenses | 216.9 | 235.4
Total | 2,852.3 | 3,029.3

3) In 2023, materials and supplies included EUR 7.1 million (5.7) Government grants for energy intensive industry in several
European countries.
4) Includes equipment costs, travel expenses, leases, office related expenses, insurance, consulting, and other
operational expenses. Other expenses in 2023 include EUR 101.2 million expected loss on divestment of the Oil & Gas
business, including transaction fees. Kemira completed the divestment in February 2024.
5) In 2023, other operating expenses included research and development expenses of EUR 34.2 million (32.8) including
government grants received. Government grants received f or R&D were EUR 0.6 million (0.6). The extent of the grants
received reduces the research and development expenses.
EMPLOYEE BENEFIT EXPENSES

EUR million | Note | 2023 | 2022
Wages, salaries and emoluments |  |  |
Wages and salaries ⁶⁾ |  | 330.4 | 323.2
Share-based payments | 2.3. | 13.1 | 16.0
Total |  | 343.5 | 339.2
Indirect employee benefit expenses |  |  |
Expenses for defined benefit pension plans and employee benefits | 4.5. | 2.0 | 2.3
Pension expenses for defined contribution plans |  | 34.9 | 29.8
Other employee benefit costs |  | 60.4 | 57.6
Total |  | 97.3 | 89.7
Total employee benefit expenses |  | 440.8 | 428.9

6) 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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KEMIRA 2023 | FINANCIAL STATEMENTS | 40
NUMBER OF PERSONNEL

| 2023 | 2022
Average number of personnel by geographical area |  |
Europe, Middle East and Africa | 2,512 | 2,497
Americas | 1,506 | 1,513
Asia Pacific | 928 | 925
Total | 4,946 | 4,936
Personnel in Finland, average | 806 | 780
Personnel outside Finland, average | 4,140 | 4,156
Total | 4,946 | 4,936
Number of personnel on Dec 31 | 4,915 | 4,902

AUDITOR'S FEES AND SERVICES

EUR million | 2023 | 2022
Audit fees | 1.8 | 1.6
Tax services | 0.1 | 0.3
Other services | 0.1 | 0.1
Total | 2.0 | 1.9

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. Kemira has a long-term share incentive plan directed towards a
group of key employees, which is 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 has 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
from the reward to the participant. 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 in 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 decide on the plan’s participants and 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 from the reward to the participant. As a rule, no
reward will be paid if a participant's employment or service ends before the reward payment.

Share incentive plan | 2020 | 2020-2022 | 2021-2023 | 2022-2024 | 2023-2025
Performance period (calendar year) | 2020 | 2020-2022 | 2021-2023 | 2022-2024 | 2023-2025
Restriction period of shares | 2 years | ¹⁾ | ¹⁾ | ¹⁾ | ¹⁾
Issue year of shares | 2021 | 2023 | 2024 | 2025 | 2026
Share price at the grant date | 13.41 | 13.41 | 12.57 | 13.32 | 14.58
Number of transferred shares from the plans | 194,097 | 254,375 | — | — | —
Estimated number of shares on December 31, 2023 | — | — | 492,637 | 510,950 | 532,209
Number of participants on December 31, 2023 | — | — | 82 | 86 | 84
Performance criteria | Intrinsic value ²⁾ | Intrinsic value ²⁾ and organic growth-% | Intrinsic value ²⁾ and organic growth-% | Intrinsic value ²⁾ and organic growth-% | ³⁾

1) A restriction period is not applied to three-year performance periods.
2) The amount of the reward is based on the intrinsic value which is defined as follows: operative EBITDA * 8 - net debt.
3) ROCE-%, average organic revenue growth-%, Kemira CO2 emission reduction from Scope 1 & 2 and revenue growth of
renewable products.
Share incentive plan 2024–2026
Participation in the long-term share incentive plan’s performance period 2024–2026 is
directed to approximately 90 people. The reward to be paid from the 2024–2026 performance
period, if the criteria are fulfilled, will amount up to a maximum of 630,000 Kemira Oyj shares.
In addition, a cash proportion covering the taxes and tax-related costs arising from the reward
is included.
Restricted Share Plan 2024
In December 2023, the Board of Directors of Kemira Oyj 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 the plan to be used with careful
consideration also in retention situations.
The restricted share plan is continuous. The Board approves for each calendar year an annual
quota of shares, which can be granted within the respective year under the RSP. The annual
quota shall mean a net number of shares together with a cash proportion required for
covering all taxes. The total amount of shares offered during the year cannot exceed the
respective quota approved by the Board.

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The plan offers participants an 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 earning criteria is applied to the restricted share
plan and the delivery of the share reward is subject to the continuation of the employment.
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 2023.
THE EFFECT OF SHARE-BASED PAYMENTS ON OPERATING PROFIT

EUR million | Note | 2023 | 2022
Rewards provided in shares |  | 5.9 | 7.4
Rewards provided in cash |  | 7.1 | 8.6
Total | 2.2. | 13.1 | 16.0

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 the 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. An 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 | 2023 | 2022
Amortization of intangible assets and depreciation of property, plant and equipment |  |
Other intangible assets ¹⁾ | 19.0 | 21.0
Buildings and constructions | 23.8 | 23.3
Machinery and equipment | 116.3 | 123.0
Other tangible assets | 6.4 | 6.3
Total | 165.5 | 173.6
Depreciations of right-of-use assets |  |
Land | 1.6 | 1.7
Buildings and constructions | 10.3 | 10.2
Machinery and equipment | 25.6 | 24.0
Other tangible assets | 0.6 | 0.8
Total | 38.1 | 36.7
Impairments of intangible assets and property, plant and equipment ²⁾ |  |
Goodwill | 0.0 | 0.0
Buildings and constructions | 0.0 | 0.1
Machinery and equipment | 0.0 | 0.9
Other tangible assets | 0.0 | 0.0
Total | 0.0 | 1.0
Total depreciation, amortization and impairments | 203.6 | 211.2

1) Amortization of intangible assets related to business acquisitions amounted to EUR 6.9 million (9.4) during the
financial year 2023.
2) In 2022, the impairment losses are related to Kemira's exit from the Russian market due to the war in Ukraine.
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 according to 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 it ceases at the
moment when the asset is classified under IFRS 5 as held for sale, or is included in the
disposal group.

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2.5 FINANCE INCOME AND EXPENSES

EUR million | 2023 | 2022
Finance income |  |
Dividend income | 0.0 | 0.0
Interest income |  |
| Interest income from loans and receivables | 10.3 | 3.5
| Interest income from financial assets at fair value through profit or loss | 2.3 | 1.1
Other finance income | 0.1 | 0.2
Total | 12.7 | 4.8
Finance expense |  |
Interest expenses |  |
| Interest expenses from other liabilities | -32.9 | -23.5
| Interest expenses from financial liabilities at fair value through profit or loss | -4.2 | -6.6
| Interest expenses from lease liabilities | -7.8 | -7.1
Other finance expenses ¹⁾ | -4.5 | -5.1
Total | -49.3 | -42.3
Exchange differences |  |
Exchange differences from financial assets and liabilities at fair value through profit or loss | 16.6 | -22.2
Exchange differences, other | -24.4 | 20.2
Total | -7.7 | -1.9
Total finance income and expenses | -44.4 | -39.4
Net finance expenses as a percentage of revenue, % | 1.3 | 1.1
Net interest as a percentage of revenue, % | 1.0 | 0.9

EUR million | 2023 | 2022
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⁾ | -54.1 | 39.2
Total | -54.1 | 39.2
Exchange differences |  |
Realized | 13.2 | 20.0
Unrealized | -20.9 | -21.9
Total | -7.7 | -1.9

1) Includes EUR 1.2 million (1.8) of arrangement fees relating to loans in 2023.
2) Consists mostly from changes in fair value of derivatives under hedge accounting treatment.

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2.6 INCOME TAXES

EUR million | 2023 | 2022
Current taxes | -87.3 | -72.6
Taxes for prior years | 2.6 | -2.0
Change in deferred taxes | 4.1 | 6.1
Total | -80.7 | -68.5

RECONCILIATION BETWEEN TAX EXPENSE AND TAX CALCULATED AT
DOMESTIC TAX RATE

EUR million | 2023 | 2022
Profit before tax | 292.0 | 308.2
Tax at parent company's tax rate 20% | -58.4 | -61.6
Foreign subsidiaries' different tax rate | -8.0 | -4.5
Non-deductible expenses and tax-exempt profits | -30.8 | 1.6
Share of profit or loss of associates | -0.1 | -0.1
Tax losses during the period without deferred tax | -1.3 | -1.8
Tax for prior years | 2.6 | -2.0
Effect of change in tax rates | -0.1 | 0.0
Utilization of prior years' tax losses with no deferred tax | 1.0 | 1.2
Changes in deferred taxes | 14.4 | -1.3
Income taxes in the Income Statement | -80.7 | -68.5

In 2023, the effective tax rate of the Group was 27.6% (22.2%), which 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 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Expiry within 5 years | 42.6 | 67.6 | 7.9 | 9.1 | 2.2 | 7.3
Expiry after 5 years | 2.5 | 3.7 | 0.6 | 0.2 | 0.0 | 0.8
No expiry | 52.5 | 119.0 | 9.2 | 12.0 | 7.5 | 24.4
Total | 97.6 | 190.3 | 17.7 | 21.3 | 9.7 | 32.4

At the end of 2023, the subsidiaries had EUR 31.1 million (105.4) 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. The changes during the year 2023 relate mainly
to the mergers in Brazil and utilization of unrecognized deferred taxes in the USA and Brazil.
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.
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

| 2023 | 2022
Earnings per share, basic |  |
Net profit attributable to equity owners of the parent company, EUR million | 199.1 | 231.7
Weighted average number of shares ¹⁾ | 153,573,071 | 153,319,710
Basic earnings per share, EUR | 1.30 | 1.51
Earnings per share, diluted |  |
Net profit attributable to equity owners of the parent company, EUR million | 199.1 | 231.7
Weighted average number of shares ¹⁾ | 153,573,071 | 153,319,710
Adjustments: |  |
Average number of treasury shares it is possible to be issued on the basis of the share-based payments | 1,478,009 | 941,054
Weighted average number of shares for diluted earnings per share | 155,051,080 | 154,260,764
Diluted earnings per share, EUR | 1.28 | 1.50

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 are 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 are 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 | 2023 | 2022
Items that may be reclassified subsequently to profit or loss |  |
Exchange differences on translating foreign operations | -17.5 | 19.7
Cash flow hedges | -67.7 | 50.4
Items that will not be reclassified subsequently to profit or loss |  |
Other shares | -76.7 | 123.2
Remeasurements of defined benefit plans | 23.3 | 40.8
Other comprehensive income for the period before taxes | -138.7 | 234.1
Tax effects relating to components of other comprehensive income | 25.1 | -47.1
Other comprehensive income for the period, net of tax | -113.4 | 187.1

THE TAX RELATING TO COMPONENTS OF OTHER COMPREHENSIVE
INCOME

| 2023 | 2022
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 | -17.5 | 0.6 | -16.9 | 19.7 | -2.2 | 17.5
Cash flow hedges | -67.7 | 13.6 | -54.1 | 50.4 | -11.2 | 39.2
Items that will not be reclassified subsequently to profit or loss |  |  |  |  |  |
Other shares | -76.7 | 15.3 | -61.3 | 123.2 | -24.7 | 98.6
Remeasurements of defined benefit plans | 23.3 | -4.4 | 18.9 | 40.8 | -9.0 | 31.8
Total other comprehensive income | -138.7 | 25.1 | -113.4 | 234.1 | -47.1 | 187.1

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3. Capital expenditures and acquisitions
3.1 GOODWILL

EUR Million | Note | 2023 | 2022
Net book value on Jan 1 |  | 510.5 | 514.0
Acquisition of subsidiaries and business acquisitions |  | 2.3 | 0.0
Impairments |  | 0.0 | 0.0
Transferred to assets classified as held-for-sale ¹⁾ ²⁾ | 3.7. | -26.5 | -11.3
Exchange differences |  | -5.3 | 7.7
Net book value on Dec 31 |  | 480.9 | 510.5

1) In 2023, goodwill was reclassified as held-for-sale assets which is related to the sale of the Oil & Gas business. See
Note 3.7. for further details regarding the held-for-sale assets.
2) In 2022, goodwill was reclassified as held-for-sale assets which is related to the sale of the colorant business within
the Pulp & Paper segment. 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.

| 2023 | 2022
EUR Million | Net book value | of which goodwill | Net book value | of which goodwill
Pulp & Paper | 1,263 | 349 | 1,275 | 350
Industry & Water | 615 | 132 | 891 | 160
Total | 1,878 | 481 | 2,165 | 510

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 cash-generating units have been determined based on value in use calculations
which require the use of estimates and assumptions. The key assumptions in value in use
calculations are the EBITDA margin and discount rate.
The long-term EBITDA margin assumption used for the impairment testing of goodwill is
based on past experience regarding EBITDA margins and 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 have 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% (2022: 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.

% | 2023 | 2022
Pulp & Paper | 9.3 | 8.5
Industry & Water | 9.3 | 8.5

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 2023 and 2022, impairment tests have not indicated any
impairment, and no impairment loss has been recognized in the income statement.
Sensitivity analysis
In 2023, 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

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cash-generating units carrying amount exceeding the recoverable amount and therefore
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 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 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. The Group does not have intangible assets with indefinite useful lives other than
goodwill. 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 |  |
2023, EUR million | 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 ¹⁾ | -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 |  | 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 EUR 1.6 million were reclassified as held-for-sale assets. These assets are
used by the Oil & Gas business. See Note 3.7. for further details regarding the held-for-sale assets.
The Group holds assigned emissions allowances under the EU Emissions Trading System at its
Helsingborg site in Sweden and UK Emission Trading System at its Bradford site in the UK. At
the Group level, the allowances showed a surplus of 112,573 tons of carbon dioxide in 2023 (a
surplus of 87,862 tons).

| Other intangible assets |  |
2022, EUR million | Prepayments | Total
Acquisition cost on Jan 1 | 330.5 | 4.1 | 334.6
Additions | 10.2 | 7.1 | 17.3
Purchases of subsidiaries and business acquisitions | 0.0 | 0.0 | 0.0
Decreases | -3.5 | 0.0 | -3.5
Transferred to assets classified as held-for-sale ²⁾ | -4.0 | 0.0 | -4.0
Reclassifications | 0.0 | -0.1 | -0.1
Exchange rate differences and other changes | 0.5 | 0.0 | 0.5
Acquisition cost on Dec 31 | 333.6 | 11.1 | 344.8
Accumulated amortization on Jan 1 | -267.9 |  | -267.9
Accumulated amortization relating to decreases and transfers | 3.5 |  | 3.5
Amortization during the financial year | -21.0 |  | -21.0
Impairments | 0.0 |  | 0.0
Transferred to assets classified as held-for-sale ²⁾ | 2.3 | 0.0 | 2.3
Exchange rate differences | -0.7 |  | -0.7
Accumulated amortization on Dec 31 | -283.8 |  | -283.8
Net book value on Dec 31 | 49.8 | 11.1 | 60.9
Emission rights |  |  | 0.3
Net book value including emission rights on Dec 31 |  |  | 61.2

2) In 2022, other intangible assets amounting EUR 1.8 million were reclassified as held-for-sale assets. These assets are
used by the colorant business within the Pulp & Paper segment. See Note 3.7. for further details regarding the held-for-
sale assets.
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. On the contrary, cloud-based software as service acquisitions generally do
not, by their nature, meet the characteristics of an intangible asset and are therefore
recognized as an expense. Intangible assets are measured at cost less accumulated

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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 are 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 when 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

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
Acquisitions of subsidiaries and business acquisitions | — | — | — | — | — | —
Decreases | — | -2.2 | -41.7 | -2.1 | — | -46.0
Disposed of subsidiaries | — | — | — | — | — | —
Transferred to assets classified as held-for-sale ²⁾ | -1.7 | -80.0 | -223.3 | -8.0 | -17.0 | -330.0
Reclassifications | — | — | 4.6 | — | -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 | — | 2.2 | 41.6 | 2.1 |  | 45.9
Depreciation during the financial year | — | -23.8 | -116.3 | -6.4 |  | -146.5
Impairments | — | — | — | — |  | —
Transferred to assets classified as held-for-sale ²⁾ | — | 20.0 | 130.7 | 6.7 |  | 157.5
Exchange rate differences | — | 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 EUR 172.5 million were reclassified as held-for-sale assets. These assets are used by the Oil & Gas business. See Note 3.7. for further details regarding the held-for-sale assets.

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2022, 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 | 50.1 | 551.8 | 1,827.1 | 92.7 | 106.7 | 2,628.5
Additions | 0.2 | 31.2 | 93.3 | 6.7 | 49.1 | 180.3
Decreases | -1.7 | -34.4 | -105.5 | -1.9 | -0.6 | -143.9
Disposed of subsidiaries | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Transferred to assets classified as held-for-sale ²⁾ | 0.0 | -1.6 | -10.2 | -0.3 | 0.0 | -12.0
Reclassifications | 0.0 | 0.0 | 2.5 | 0.0 | -2.4 | 0.1
Exchange rate differences and other changes | -1.2 | 5.0 | 12.3 | 0.3 | 0.3 | 16.8
Acquisition cost on Dec 31 | 47.5 | 552.0 | 1,819.5 | 97.5 | 153.2 | 2,669.7
Accumulated depreciation on Jan 1 | -10.0 | -277.0 | -1,223.4 | -55.0 |  | -1,565.4
Accumulated depreciation related to decreases and transfers | 0.1 | 30.2 | 100.3 | 1.8 |  | 132.4
Depreciation during the financial year | 0.0 | -23.3 | -123.0 | -6.3 |  | -152.7
Impairments | 0.0 | -0.1 | -0.9 | 0.0 |  | -1.0
Transferred to assets classified as held-for-sale ²⁾ | 0.0 | 0.8 | 6.2 | 0.2 | 0.0 | 7.2
Exchange rate differences | 0.0 | -0.9 | -8.7 | -0.5 |  | -10.2
Accumulated depreciation on Dec 31 | -9.9 | -270.2 | -1,249.6 | -59.9 |  | -1,589.6
Net book value on Dec 31 | 37.6 | 281.8 | 569.9 | 37.6 | 153.2 | 1 080,2

1) Prepayment and non-current assets under construction are mainly composed of plant investments.
2) In 2022, property, plant and equipment amounting EUR 4.8 million were reclassified as held-for-sale assets. These assets are used by the colorant business within the Pulp & Paper segment. 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 are 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 the overhaul of an
asset performed at regular intervals and identified as separate components are capitalized
and depreciated over their useful lives.

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3.4 LEASES
CHANGE IN RIGHT-OF-USE ASSETS

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 ¹⁾ | -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 2023, right-of-use assets amounting EUR 17.8 million were reclassified as held-for-sale assets. These assets are used by the Oil & Gas business. See Note 3.7. for further details regarding the held-for-sale assets.

2022, EUR million | Land | Buildings and constructions | Machinery and equipment | Other property, plant and equipment | Total
Net book value Jan 1 | 33.1 | 29.5 | 71.1 | 2.1 | 135.8
Additions | 0.4 | 19.0 | 25.5 | 0.7 | 45.6
Depreciation and impairments | -1.7 | -10.2 | -24.0 | -0.8 | -36.7
Transferred to assets classified as held-for-sale ²⁾ | 0.0 | -0.3 | -0.1 | 0.0 | -0.4
Reclassifications | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Exchange rate differences and other changes | -0.4 | -0.1 | 2.4 | -0.1 | 1.7
Net book value Dec 31 | 31.5 | 37.8 | 74.8 | 1.9 | 146.0

2) In 2022, right-of-use assets amounting EUR 0.4 million were reclassified as held-for-sale assets. These assets are used by the colorant business within the Pulp & Paper segment. 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 has been presented in
Note 5.1. Capital Structure.
In 2023, the amount of lease expenses recognized in the income statement for leases of
short-term or low-value assets is EUR 3 million (4).
The Group's accounting policies
Leases
At the time of entering into an agreement, the Group assesses whether it 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 lessee, the right to control the asset and 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 a corresponding liability when the leased
asset is available to the Group. The rent paid is divided into debt and interest expenses.
I nterest 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 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, 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

2023, EUR million | The shares of Pohjolan Voima Group | Other non-listed shares | Total
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
2022, EUR million |  |  |
Net book value on Jan 1 | 257.3 | 2.7 | 260.0
Additions | — | — | —
Decreases | — | — | —
Change in fair value | 123.2 | — | 123.2
Net book value on Dec 31 | 380.6 | 2.7 | 383.3

SHARES IN THE POHJOLAN VOIMA GROUP

EUR million | Class of shares | Holding, % | Class of assets | 2023 | 2022
Pohjolan Voima Oyj | A | 5 | hydro power | 100.2 | 126.3
Pohjolan Voima Oyj | B | 2 | nuclear power | 47.9 | 79.3
Pohjolan Voima Oyj ¹⁾ | B2 | 7 | nuclear power | 62.9 | 21.3
Teollisuuden Voima Oyj | A | 2 | nuclear power | 92.2 | 152.8
Other Pohjolan Voima Oyj | C2, G5, G6, M | several | several | 0.8 | 0.8
Total |  |  |  | 303.9 | 380.6

1) TVO announced on April 16, 2023 that Olkiluoto 3 is ready and regular electricity production has started. In Q2 2023,
PVO B2 share series (Olkiluoto 3) was valued for the first time using the discounted cash flow method. Kemira's value of
the ownership of PVO B2 share series increased to EUR 62.9 million at year-end 2023.
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 sensitives

| 2023 | 2022
Short-term discount rate | 5.1% | 5.1%
Long-term discount rate | 5.1% | 5.1%
Electricity price estimate EUR/MWh | 51.85 - 69.32 | 57.62 - 85.80
Forward electricity prices EUR/MWh | 44.25 - 95.25 | 68.60 - 158.10

A 10% decrease or increase in the electricity market price in the future would negatively or
positively impact on the fair value of the shares by approximately EUR +/- 98 million (+/- 47).
An increase or decrease of one percentage point in the discount rate would negatively or
positively impact on the fair value of the shares by approximately EUR -49 million (-38) or
approximately EUR 69 million (53).

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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, 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 which it supplies energy at cost. Kemira Group has
A series shares in TVO and A, B, C, G, and M 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 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 after this, the development of the electricity price is 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 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 value. 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
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 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 million was paid in cash, except for certain
payments which will be paid later. The purchase price is divided into two installments, of
which EUR 2 million was paid in Q1 2023 and EUR 1 million was paid earlier in 2021. The
remainder of the payments to the acquired company's employees, made after the acquisition
date, are remunerations for services under IFRS 3 and these payments have no effect on
goodwill.
Based on preliminary acquisition calculations, EUR 1 million was allocated to intangible assets
such as software. A provisional 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 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
the 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
ASSETS CLASSIFIED AS HELD-FOR-SALE AT FAIR VALUES

EUR million | Note | 2023 | 2022
Goodwill | 3.1. | 0.0 | —
Intangible assets | 3.2. | 1.6 | —
Property, plant and equipment | 3.3. | 109.5 | —
Right-of-use assets | 3.4. | 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 |  | 255.6 | —

LIABILITIES DIRECTLY ASSOCIATED WITH THE ASSETS CLASSIFIED AS
HELD-FOR-SALE

EUR million | Note | 2023 | 2022
Liabilities related to right-of-use assets | 5.3. | 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 |  | 104.8 | —

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.
The revenue to be carved-out from Kemira was around EUR 430 million in 2022. This includes
Kemira’s Oil & Gas business, which had a revenue of EUR 373 million in 2022. The remaining
carved-out revenue of around EUR 57 million consisted of non-Oil & Gas industrial polymer
sales through indirect channels.

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Approximately 250 employees are expected to transfer to the buyer as part of the
transaction, which includes Kemira’s manufacturing facilities in Mobile, Columbus and
Aberdeen in the United States. The Teesport manufacturing facility in the United Kingdom is
included in the transaction, subject to certain site-specific closing conditions being fulfilled. In
addition, the novel liquid polymer (NLP) manufacturing assets, which are part of Kemira’s
manufacturing facility in Botlek, the Netherlands, are included in the transaction, but Kemira
will continue to operate the plant under a long-term agreement and will retain the employees.
The total consideration on a cash and debt-free basis amounts to approximately USD 280
million, around EUR 260 million, subject to ordinary closing adjustments. On February 2, 2024,
Kemira announced that it had closed the divestment of its Oil & Gas related po rtfolio. The
closing of the Teesport manufacturing facility in the United Kingdom is expected to happen
later, subject to site-specific closing conditions. The transaction will be carried out as a
combination of a share and assets sale.
As of Q4 2023, the assets and liabilities related to the sale of the Oil & Gas business were
classified as a disposal group held for sale according to IFRS 5. As a result, the assets and
liabilities related to the sale of the Oil & Gas business were presented in the consolidated
balance sheet, on separate lines. The reclassification has an effect on the reported values of
balance sheet items and the expected loss from the sale of the Oil & Gas business is EUR 101
million, including transaction fees. The Oil & Gas business is part of Kemira's Industry & Water
segment.
Sale of the colorants business to ChromaScape, LLC
ASSETS CLASSIFIED AS HELD-FOR-SALE AT FAIR VALUE

EUR million | Note | 2023 | 2022
Goodwill | 3.1. | — | 0.0
Intangible assets | 3.2. | — | 1.8
Property, plant and equipment | 3.3. | — | 4.8
Right-of-use assets | 3.4. | — | 0.4
Inventories |  | — | 14.3
Total |  | — | 21.3

LIABILITIES DIRECTLY ASSOCIATED WITH THE ASSETS CLASSIFIED AS
HELD-FOR-SALE

EUR million | Note | 2023 | 2022
Liabilities of defined benefit plans | 4.5. | — | 0.3
Liabilities related to right-of-use assets |  | — | 0.4
Total |  | — | 0.7

Kemira announced the closing of the divestment of most of its colorants business to
ChromaScape, LLC on May 4, 2023. The loss from the sale of the colorants business was EUR
25 million, of which EUR 10 million was recognized during the 2023 reporting period. The
colorants business was part of Kemira's Pulp & Paper segment.
Revenue from the business in 2022 was approximately EUR 50 million and 59 employees
transferred to ChromaScape, LLC as part of the transaction. The sale included one
manufacturing site at Goose Creek, Bushy Park in South Carolina, USA. Kemira retained its
APAC related colorants business.
As of Q3 2022, the assets and liabilities related to the sale of the colorants business were
classified as a disposal group held for sale according to IFRS 5. As a result, the assets and
liabilities related to the sale of the colorants business were presented in the consolidated
balance sheet, on separate lines.
The 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 and a sale is
considered highly probable. Since the time of classification, the assets have been valued at
the lower of carrying amount and fair value less costs to sell. Depreciation on these assets
discontinues at the time of classification. Non-current assets classified as held for sale is
disclosed separately in the balance sheet.

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4. Working capital and other balance sheet items
NET WORKING CAPITAL

EUR million | Note | 2023 | 2022
Inventories | 4.1. | 281.8 | 433.7
Trade receivables and other receivables | 4.2. | 468.2 | 603.7
Excluding financing items in other receivables ¹⁾ |  | -18.6 | -71.1
Trade payables and other liabilities | 4.3. | 489.4 | 635.2
Excluding financing items in other liabilities ¹⁾ |  | -37.0 | -31.4
Total |  | 278.9 | 362.4

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 | 2023 | 2022
Materials and supplies | 113.0 | 147.8
Finished goods | 149.4 | 264.7
Prepayments | 19.4 | 21.2
Total | 281.8 | 433.7

In 2023, EUR 2.4 million (9.2) 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 include 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 sales costs.
4.2 TRADE RECEIVABLES AND OTHER CURRENT RECEIVABLES

EUR million | 2023 | 2022
Trade and other receivables |  |
Trade receivables | 386.2 | 449.6
Prepayments | 8.5 | 7.1
Prepaid expenses and accrued income | 38.9 | 110.5
Other current receivables | 34.7 | 36.4
Total | 468.2 | 603.7

AGING OF OUTSTANDING TRADE RECEIVABLES

| 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

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| 2022
EUR million | Receivables, gross amount | Expected credit losses | Receivables, net amount
Not due trade receivables | 389.2 | -0.7 | 388.5
Trade receivables 1-90 days overdue | 61.1 | -0.1 | 61.0
Trade receivables more than 91 days overdue | 4.7 | -4.6 | 0.1
Total | 454.9 | -5.3 | 449.6

In 2023, the impairment loss (+) /gain(-) of trade receivables amounted to EUR -0.2 million
(2.2).
In 2023, items that were due in a time period longer than one year included trade receivables
of EUR 0.3 million (0.7), prepaid expenses and an accrued income of EUR 1.3 (0.5), other
receivables of EUR 0.1 (0.3) and prepayments of EUR 0.0 (1.7).
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. The expected credit losses are calculated by
multiplying the book value of unpaid trade receivables by the expected credit loss rate
according to geographical area. Any overdue trade receivables over 180 days are assessed
based on 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 | 2023 | 2022
Trade payables and other liabilities |  |
Prepayments received | 1.6 | 2.5
Trade payables | 226.7 | 292.8
Accrued expenses | 218.4 | 277.0
Other non-interest-bearing current liabilities | 42.7 | 63.0
Total | 489.4 | 635.2

Accrued expenses |  |
Employee benefits | 89.7 | 94.2
Items related to revenue and purchases | 91.4 | 149.8
Interest | 7.7 | 7.2
Exchange rate differences | 6.9 | 2.8
Other | 22.7 | 22.9
Total | 218.4 | 277.0

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, 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 in 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.

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EUR million | On Jan 1, 2022 | 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, 2022
Deferred tax liabilities |  |  |  |  |  |  |
Intangible and fixed assets | 57.3 | 14.6 | 0.0 | 0.0 | 0.0 | 1.2 | 73.2
Leased assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Other shares | 28.0 | 0.0 | 24.7 | 0.0 | 0.0 | 0.0 | 52.7
Financial instruments | 7.0 | 0.0 | 9.5 | 0.0 | 0.0 | 0.0 | 16.5
Defined benefit arrangements | 14.6 | -1.6 | 3.0 | 0.0 | 0.0 | 0.0 | 15.9
Fair value adjustments of net assets acquired | 1.1 | -0.5 | 0.0 | 0.0 | 0.0 | 0.0 | 0.6
Other accruals | 4.4 | -6.2 | 3.7 | 2.2 | 0.0 | 0.0 | 4.3
Total | 112.4 | 6.3 | 40.9 | 2.2 | 0.0 | 1.3 | 163.1
Deducted from deferred tax assets | -35.3 |  |  |  |  |  | -44.9
Deferred tax liabilities in the balance sheet | 77.1 |  |  |  |  |  | 118.2
Deferred tax assets |  |  |  |  |  |  |
Intangible and fixed assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Provisions and accruals | 20.3 | -1.6 | 0.0 | 0.0 | 0.0 | 1.9 | 20.7
Lease liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Financial instruments | 0.3 | 0.0 | -0.3 | 0.0 | 0.0 | 0.0 | 0.0
Tax losses and tax credits | 11.2 | -0.1 | 0.0 | 0.0 | 0.0 | 10.2 | 21.3
Defined benefit arrangements | 10.9 | 0.1 | -6.0 | 0.0 | 0.0 | -2.4 | 2.6
Other | 23.0 | 14.0 | 0.0 | 0.0 | 0.0 | -9.6 | 27.5
Total | 65.8 | 12.4 | -6.3 | 0.0 | 0.0 | 0.1 | 72.0
Deducted from deferred tax liabilities | -35.3 |  |  |  |  |  | -44.9
Deferred tax assets in the balance sheet | 30.5 |  |  |  |  |  | 27.1

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
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.

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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 reverse 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
taxes assets and liabilities relate to the income taxes levied by the same taxation authority
on either the same tax entity or 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 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, Germany, and the UK.
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. The 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 2023, the obligations of
Pension Fund Neliapila totaled EUR 156.2 million (156.9) and assets of the plan totaled EUR
262.5 million (235.3).
Pension Fund Neliapila's supplementary benefit includes 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 2023 to return the
fund's surplus of EUR 14 million to Kemira Group companies. The return of 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 2024. The Group has not recognized any items regarding the
return of surplus in the Consolidated Financial Statements 2023.
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
Pensionsgaranti Mutual Insurance Company for the ITP 2 plan pension liability. At the end of
2023, the defined benefit obligations in Sweden totaled EUR 38.2 million (38.3).
ASSETS AND LIABILITIES OF DEFINED BENEFIT PLANS RECOGNIZED IN
THE BALANCE SHEET

EUR million | 2023 | 2022
Present value of defined benefit obligations | 233.9 | 231.5
Fair value of plans' assets | -272.2 | -244.4
Surplus (-) / Deficit (+) | -38.3 | -12.8
The effect of asset ceiling | 1.8 | 1.4
Net receivables (-) / liabilities (+) of defined benefit plans recognized in the Balance Sheet | -36.5 | -11.4
Liabilities of defined benefit plans | 69.8 | 66.9
Receivables of defined benefit plans | -106.3 | -78.4
Net receivables (-) / liabilities (+) of defined benefit plans recognized in the Balance Sheet | -36.5 | -11.4
AMOUNTS OF DEFINED BENEFIT PLANS RECOGNISED IN THE INCOME STATEMENT |  |
Service costs | 2.0 | 2.3
Net interest cost ¹⁾ | -0.5 | 0.7
Defined benefit plans' expenses (+) / income (-) in the Income Statement | 1.5 | 3.0

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 | 2023 | 2022
Items resulting from remeasurements of defined benefit plans ²⁾ |  |
Actuarial gains (-) / losses (+) in defined benefit obligations arising from changes in demographic assumptions | 0.3 | -0.4
Actuarial gains (-) / losses (+) in defined benefit obligations arising from changes in financial assumptions ³⁾ | 1.9 | -70.3
Actuarial gains (-) / losses (+) in defined benefit obligations arising from experience based assumptions | 6.9 | 9.7
Actuarial gains (-) / losses (+) in plan assets ³⁾ | -32.2 | 23.3
Effect from asset ceiling | 0.3 | 0.8
Defined benefit plans' expenses (+) / income (-) in the other comprehensive income | -22.8 | -37.0

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 2023 and 2022, the actuarial gains and losses are mainly due to return on assets, change in the discount rate and
inflation in pension plan in Sweden and Pension Fund Neliapila.
CHANGES IN PLAN ASSETS OVER THE PERIOD IN DEFINED BENEFIT PLANS

EUR million | 2023 | 2022
Defined benefit obligation on Jan 1 | 231.5 | 312.0
Current service costs | 1.6 | 2.3
Interest costs | 8.4 | 3.6
Actuarial losses (+) / gains (-) | 9.1 | -61.1
Exchange differences on foreign plans | 0.0 | -4.7
Benefits paid | -16.8 | -16.2
Curtailments and settlements ⁴⁾ | 0.0 | -3.4
Transferred to liabilities classified as held-for-sale | — | -0.4
Other items | 0.0 | -0.6
Present value of defined benefit obligations on Dec 31 | 233.9 | 231.5

4) In 2022, the defined benefit (DB) pension plan has been converted to a defined contribution plan In Norway. DB
pension obligations have been transferred to an insurance company.
CHANGES IN PLAN ASSETS OVER THE PERIOD
IN DEFINED BENEFIT PLANS

EUR million | 2023 | 2022
Fair value on Jan 1 | 244.4 | 292.0
Interest income | 9.0 | 2.9
Contributions | 0.4 | 0.2
Return of surplus assets ⁵⁾ | — | -10.0
Actuarial losses (-) / gains (+) | 32.2 | -23.3
Exchange differences on foreign plans | 0.1 | -0.6
Benefits paid | -13.3 | -12.8
Curtailments and settlements ⁴⁾ | 0.0 | -3.5
Transferred to assets classified as held-for-sale | — | -0.1
Other items | -0.5 | -0.4
Fair value of plan assets on Dec 31 | 272.2 | 244.4

5) In 2022, Pension Fund Neliapila paid to a surplus return of EUR 10 million to Kemira Group companies.
PLAN ASSETS BY ASSET CATEGORY IN DEFINED BENEFIT PLANS

EUR million | 2023 | 2022
Interest rate investments and other assets | 144.1 | 124.2
Shares and share funds | 79.5 | 75.8
Properties occupied by the Group | 46.8 | 42.8
Kemira Oyj's shares | 1.9 | 1.6
Total assets | 272.2 | 244.4

The Finnish Pension Fund Neliapila has most of the defined benefit plan’s assets. At the end
of 2023, the Pension Fund Neliapila's assets amounted to EUR 262.5 million (235.3), which
consisted of interest rate investments and other assets of EUR 134.5 million (115.7), shares and
share funds of EUR 79.4 million (75.1), properties of EUR 46.8 million (42.8), and Kemira Oyj's
shares of EUR 1.9 million (1.6). In the 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. In Pension
Fund Neliapila, a market risk can be considered a significant investment risk. The market risk
arising from cyclical fluctuations of the financial market, is 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 41.2 million (-20.5).
SIGNIFICANT ACTUARIAL ASSUMPTIONS

% | 2023 | 2022
Discount rate | 3.1 - 4.5 | 3.7 - 4.7
Inflation rate | 1.6 - 3.1 | 2.0 - 3.2
Future salary increases | 2.1 - 2.5 | 2.5 - 3.2
Future pension increases | 2.0 - 2.3 | 2.1 - 2.8

The significant assumptions used in calculating the obligations of the Finnish Pension Fund
Neliapila were as follows: discount rate 3.1% (3.8%), inflation rate 2.1% (2.6%), future salary
increases 2.1% (2.6%), and future pension increases 2.3% (2.8%).
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 to 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 11.9 million (5.1%), if all other assumptions
were held constant.
SENSITIVITY ANALYSIS - PENSION FUND NELIAPILA IN FINLAND

| Defined benefit obligation | Impact on defined benefit obligation
EUR million | 2023 | 2022 | 2023 | 2022
Discount rate 3.1% (3.8%) | 156.2 | 156.9 |  |
Discount rate +0.5% | 149.2 | 149.8 | -4.5% | -4.5%
Discount rate -0.5% | 163.8 | 164.6 | 4.9% | 4.9%
Future pension increases 2.3% (2.8%) | 156.2 | 156.9 |  |
Future pension increases +0.5% | 163.0 | 163.8 | 4.4% | 4.4%
Future pension increases -0.5% | 149.8 | 150.5 | -4.1% | -4.1%

A change in the mortality assumption where life expectancy is increased by one year will
increase the defined benefit obligation by EUR 6.9 million (4.4%).
SENSITIVITY ANALYSIS - ITP 2 PENSION PLAN IN SWEDEN

| Defined benefit obligation | Impact on defined benefit obligation
EUR million | 2023 | 2022 | 2023 | 2022
Discount rate 3.8% (3.65%) | 38.2 | 38.4 |  |
Discount rate +0.5% | 36.0 | 36.0 | -5.8% | -6.0%
Discount rate -0.5% | 40.7 | 40.9 | 6.4% | 6.7%
Future salary increases 2.1% (2.5%) | 38.2 | 38.4 |  |
Future salary increases +0.5% | 38.9 | 39.0 | 1.6% | 1.8%
Future salary increases -0.5% | 37.7 | 37.7 | -1.5% | -1.7%

A change in the mortality assumption where life expectancy is increased by one year will
increase the defined benefit obligation by EUR 1.5 million (3.8%).
Expected contributions to the defined benefit plans for the year ending on December 31,
2024, are EUR 4.1 million. In addition, Pension Fund Neliapila is expected to pay a surplus
return of EUR 14 million to Kemira Group companies during the first half of 2024.

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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 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 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 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, 2023 | 0.1 | 0.0 | 17.3 | 20.9 | 38.4
Exchange rate differences | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Additional provisions and increases in existing provisions | 0.0 | 0.0 | 0.0 | 12.3 | 12.3
Used during the financial year | 0.0 | 0.0 | -0.2 | -0.2 | -0.4
Unused provisions reversed | -0.1 | 0.0 | 0.0 | -0.3 | -0.3
Reclassification | 0.0 | 0.0 | -4.7 | -7.5 | -12.2
On December 31, 2023 | 0.1 | 0.0 | 12.4 | 25.3 | 37.8
Current provisions |  |  |  |  |
On January 1, 2023 | 0.4 | 0.0 | 10.1 | 8.3 | 18.8
Exchange rate differences | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Additional provisions and increases in existing provisions | 0.0 | 0.1 | 1.8 | 2.4 | 4.3
Used during the financial year | -0.1 | 0.0 | -8.2 | -9.0 | -17.3
Unused provisions reversed | 0.0 | -0.1 | -0.7 | -0.4 | -1.1
Reclassification | 0.0 | 0.0 | 4.7 | 7.5 | 12.2
On December 31, 2023 | 0.3 | 0.0 | 7.7 | 8.9 | 16.9

1) The Group's operations in the chemical industry are governed by numerous international agreements as well as
regional and national legislation all over the world. The Group treats its environmental liab ilities and risks according to
established internal principles and procedures. In 2023, provisions for environmental remediation totaled EUR 20.1
million (27.4). The biggest provisions relate to site closures and reconditioning of the sediment of a lake in Vaasa, Finland.
2) Other provisions totaled EUR 34.2 million (29.2). The biggest provisions relate to expected liabilities for energy
company producing steam in Pori, Finland, owned via Pohjolan Voima.

EUR million | 2023 | 2022
Breakdown of the total amount of provisions |  |
Non-current provisions | 37.8 | 38.4
Current provisions | 16.9 | 18.8
Total | 54.6 | 57.2

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 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 |  | 2023 | 2022
Equity |  | 1,684.2 | 1,684.6
Total assets |  | 3,489.3 | 3,651.1
Gearing, % ¹⁾ |  | 32 | 46
Equity ratio, % ²⁾ |  | 48 | 46

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 | 2023 | 2022
Non-current interest-bearing liabilities | 5.3. | 615.7 | 838.1
Current interest-bearing liabilities | 5.3. | 322.1 | 183.7
Interest-bearing liabilities |  | 937.8 | 1,021.8
Cash and cash equivalents | 5.4. | 402.5 | 250.6
Interest-bearing net liabilities |  | 535.2 | 771.2

Quarterly information on interest-bearing net liabilities is disclosed in the section on the
Reconciliation with IFRS figures.
Kemira aims at above-the-market revenue growth with an operative EBITDA margin of
15–18%. The gearing target is below 75%. The revolving credit facility agreement and some
bilateral loan agreements contain a covenant according to which company gearing must be
below 115%.
The Board of Directors proposes a per-share dividend of EUR 0.68 for 2023 (0.62),
corresponding to a dividend payout ratio of 52% (41%). Kemira's dividend policy aims at a
competitive dividend that increases 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 payments of non-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 has completed the divestment in February 2024.

EUR million | Non-current interest-bearing liabilities including payments of non-current portion | Current interest-bearing liabilities | Interest-bearing liabilities total | Cash and cash equivalents | Interest-bearing net liabilities
Net book value on Jan 1, 2022 | 865.0 | 127.1 | 992.2 | 142.4 | 849.8
Change in net liabilities with cash flows |  |  |  |  |
Proceeds from non-current liabilities (+) | 195.9 |  | 195.9 |  | 195.9
Payments of non-current liabilities (-) | -202.8 |  | -202.8 |  | -202.8
Payments of lease liabilities (-) | -35.1 |  | -35.1 |  | -35.1
Proceeds from current liabilities (+) and payments (-) |  | 21.4 | 21.4 |  | 21.4
Change in cash and cash equivalents |  |  |  | 105.9 | -105.9
Change in net liabilities without cash flows |  |  |  |  |
Increases in lease liabilities (+) | 44.5 |  | 44.5 |  | 44.5
Effect on change in exchange gains and losses | 5.0 | -2.5 | 2.5 | 2.3 | 0.2
Other changes without cash flows | 2.9 | 0.2 | 3.2 | — | 3.2
Net book value on Dec 31, 2022 | 875.5 | 146.3 | 1,021.8 | 250.6 | 771.2

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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, 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
January 1, 2022 | 153,127 | 2,215 | 155,343 | 221.8 | 14.9
Treasury shares issued to the participants in the share incentive plan 2019-2021 | 221 | -221 | — | — | -1.5
Treasury shares issued to the Board of Directors | 16 | -16 | — | — | -0.1
The shares returned by the participants from the share incentive plans | -13 | 13 | — | — | 0.1
December 31, 2022 | 153,352 | 1,990 | 155,343 | 221.8 | 13.4

Kemira Oyj has one class of shares. Each share entitles its holder to one vote at the Annual
General Meeting. On December 31, 2023, the share capital was EUR 221.8 million and the
number of shares was 155,342,557 including 1,722,725 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 1,722,725 (1,990,197) treasury shares on December 31, 2023.
The average share price of the treasury shares was EUR 6.73, and they represented 1.1% (1.3%)
of the share capital, and the aggregate number of votes conferred by all shares. The
aggregate par value of the treasury shares is EUR 2.5 million (2.8).
Share premium
The share premium is a reserve accumulated through subscriptions entitled by 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 hedge accounting.
Other reserves
Other reserves originate from local legal requirements. On December 31, 2023, other reserves
were EUR 4.1 million (4.0).
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
The 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

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

2022, EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028- | Book value, total
Loans from financial institutions | — | — | 192.4 | — | 120.0 | — | 312.4
Bonds | — | 199.9 | — | — | — | 191.2 | 391.0
Lease liabilities | 30.9 | 24.6 | 17.9 | 13.8 | 8.7 | 53.0 | 148.9
Other non-current liabilities | 22.4 | 0.8 | — | — | — | — | 23.2
Other current liabilities | 146.3 | — | — | — | — | — | 146.3
Total amortizations of interest- bearing liabilities | 199.6 | 225.2 | 210.2 | 13.8 | 128.7 | 244.2 | 1,021.8

At year-end 2023, the Group's interest-bearing net liabilities were EUR 535.2 million (771.2).
For more information, see Note 5.1. Capital structure.
MATURITY OF NON-CURRENT INTEREST-BEARING LIABILITIES BY
CURRENCY

2023 |  |  |  |  |  |  | Book value, total
Currency, EUR million | 2024 | 2025 | 2026 | 2027 | 2028 | 2029-
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 | 0.0 | — | 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

2022 |  |  |  |  |  |  | Book value, total
Currency, EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028-
EUR | 23.6 | 206.6 | 153.4 | 2.2 | 121.8 | 206.4 | 714.1
USD | 15.8 | 12.4 | 52.9 | 9.4 | 6.3 | 24.3 | 121.1
GBP | 0.7 | 0.8 | 0.6 | 0.3 | 0.1 | 10.1 | 12.7
Other | 13.2 | 5.5 | 3.3 | 1.9 | 0.5 | 3.3 | 27.7
Total | 53.4 | 225.2 | 210.2 | 13.8 | 128.7 | 244.2 | 875.5

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5.4. FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY
FINANCIAL ASSETS

|  |  | 2023 |  | 2022
EUR million | Note | Book values | Fair values | Book values | Fair values
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Fair value through profit and loss | 5.6. |  |  |  |  |  |  |  |  |  |
Derivatives not qualifying for hedge accounting |  | 3.6 | — | 3.6 | — | 3.6 | 13.3 | — | 13.3 | — | 13.3
Fair value through other comprehensive income | 5.6. |  |  |  |  |  |  |  |  |  |
Derivatives qualifying for hedge accounting |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges ¹⁾ |  | 15.9 | — | 15.9 | — | 15.9 | 81.7 | — | 81.7 | — | 81.7
Other shares | 3.5. |  |  |  |  |  |  |  |  |  |
The shares of Pohjolan Voima Group |  | 303.9 | — | — | 303.9 | 303.9 | 380.6 | — | — | 380.6 | 380.6
Other non-listed shares |  | 1.4 | — | — | 1.4 | 1.4 | 2.7 | — | — | 2.7 | 2.7
Amortized cost |  |  |  |  |  |  |  |  |  |  |
Other non-current assets ²⁾ |  | 6.3 | — | 6.3 | — | 6.3 | 6.6 | — | 6.6 | — | 6.6
Other current receivables ²⁾ |  | 0.3 | — | 0.3 | — | 0.3 | 0.3 | — | 0.3 | — | 0.3
Trade receivables ²⁾ | 4.2. | 386.2 | — | 386.2 | — | 386.2 | 449.6 | — | 449.6 | — | 449.6
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |
Cash in hand and at bank accounts |  | 271.0 | — | 271.0 | — | 271.0 | 245.3 | — | 245.3 | — | 245.3
Deposits and money market investments ³⁾ |  | 131.5 | — | 131.5 | — | 131.5 | 5.3 | — | 5.3 | — | 5.3
Assets classified as held-for-sale ⁴⁾ | 3.7. | 57.1 | — | 57.1 | — | 57.1 | — | — | — | — | —
Total financial assets |  | 1,177.2 | — | 871.9 | 305.3 | 1,177.2 | 1,185.4 | — | 802.1 | 383.3 | 1,185.4

1) Includes derivative contracts of EUR 1.6 million (24.4) maturing after the year 2024.
2) In 2023, other non-current assets and other current receivables include expected credit losses of EUR 0.2 million (0.4) in accordance with the IFRS 9 standard. Trade receivables include expected credit losses of EUR 4.8 million (5.3).
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) In 2023, trade receivables amounting EUR 54.8 million and cash and cash equivalents EUR 2.2 million were reclassified as held-for-sale assets. These assets are used by the Oil & Gas business. Kemira has completed the divestment in February
2024. See Note 3.7. for further details regarding the held-for-sale assets.

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FINANCIAL LIABILITIES

|  |  | 2023 |  | 2022
EUR million | Note | Book values | Fair values | Book values | Fair values
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total
Fair value through profit and loss | 5.6. |  |  |  |  |  |  |  |  |  |
Derivatives not qualifying for hedge accounting |  | 4.1 | — | 4.1 | — | 4.1 | 2.3 | — | 2.3 | — | 2.3
Fair value through other comprehensive income | 5.6. |  |  |  |  |  |  |  |  |  |
Derivatives qualifying for hedge accounting |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges ¹⁾ |  | 3.6 | — | 3.6 | — | 3.6 | 1.6 | — | 1.6 | — | 1.6
Amortized cost |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities | 5.3. |  |  |  |  |  |  |  |  |  |
Non-current loans from financial institutions |  | 311.3 | — | 312.7 | — | 312.7 | 312.4 | — | 312.2 | — | 312.2
Bonds |  | 193.9 | — | 189.8 | — | 189.8 | 391.1 | — | 379.2 | — | 379.2
Current portion |  | 199.6 | — | 200.2 | — | 200.2 | — | — | — | — | —
Non-current leasing liabilities |  | 93.9 | — | 93.9 | — | 93.9 | 118.0 | — | 118.0 | — | 118.0
Current portion |  | 27.6 | — | 27.6 | — | 27.6 | 30.9 | — | 30.9 | — | 30.9
Other non-current liabilities |  | 16.7 | — | 16.8 | — | 16.8 | 16.7 | — | 16.6 | — | 16.6
Current portion |  | 6.1 | — | 6.3 | — | 6.3 | 6.5 | — | 6.8 | — | 6.8
Current loans from financial institutions |  | 88.8 | — | 88.7 | — | 88.7 | 146.3 | — | 146.1 | — | 146.1
Non-interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |
Other non-current liabilities |  | 8.7 | — | 8.7 | — | 8.7 | 9.3 | — | 9.3 | — | 9.3
Other current liabilities |  | 26.2 | — | 26.2 | — | 26.2 | 45.5 | — | 45.5 | — | 45.5
Trade payables | 4.3. | 226.7 | — | 226.7 | — | 226.7 | 292.8 | — | 292.8 | — | 292.8
Liabilities classified as held-for-sale ²⁾ | 3.7. | 45.6 | — | 45.6 | — | 45.6 | 0.4 | — | 0.4 | — | 0.4
Total financial liabilities |  | 1,252.7 | — | 1,250.9 | — | 1,250.9 | 1,373.6 | — | 1,361.6 | — | 1,361.6

1) Includes derivative contracts of EUR -2.1 million (-0.0) maturing after the year 2024.
2) In 2023, lease liabilities amounting EUR 24.1 million and trade payables EUR 21.5 million were reclassified as held-for-sale assets. These liabilities are used by the Oil & Gas business. Kemira has completed the divestment in February 2024. In 2022,
lease liabilities amounting EUR 0.4 million classified as assets held-for sale related to colorant business within the Pulp & Paper segment. 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 | 2023 | 2022
Net book value on Jan 1 | 383.3 | 260.0
Effect on other comprehensive income | -76.7 | 123.2
Increases | -0.3 | —
Decreases | -1.0 | —
Net book value on Dec 31 | 305.4 | 383.3

The Group's accounting policies
When a financial asset or 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 | Non-current 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. In 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 bank 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 of 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
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 in 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 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 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 to ensure 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 balance sheet items of group companies located outside the euro area are
consolidated into euro. The transaction risk is hedged mainly using foreign currency forwards.
The Group's most significant transaction currency risks arise from the US dollar, the Chinese
renminbi, the Canadian dollar and Swedish krona. At the end of the year, the US dollar
denominated exchange rate risk against EUR had an equivalent value of approximately
EUR 132 million (54), the average hedging rate and hedging ratio being 1.09 and 56% (68%),
respectively. The Chinese renminbi denominated exchange rate risk was approximately
EUR 115 million (86), the average hedging rate and hedging ratio being 7.77 and 69% (68%),
respectively. The Canadian dollar denominated exchange rate risk was approximately EUR 56
million (56), the average hedging rate and hedging ratio being 1.47 and 56% (52%),
respectively. The denominated exchange rate risk of the Swedish krona against EUR had an
equivalent value of approximately EUR 35 million (36), the average hedging rate and hedging
ratio being 11.55 and 73% (64%), respectively.
In addition, Kemira is exposed to smaller transaction risks against EUR mainly in relation to
Korean won, the Danish krona, Polish zloty and the Norwegian krona and against USD mainly
in relation to the Canadian dollar and the Brazilian real with the annual exposure in those
currencies being approximately EUR 152 million.

|  | 2023 |  |  | 2022 |
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⁾ | 131,8 | -115,1 | 55,5 | -35,3 | 54,2 | -86,4 | 55,7 | -35,8
Loans, net | 390,8 | 57,6 | 0,0 | -9,3 | 411,9 | 59,9 | 13,6 | -15,8
Derivatives, operative cash flow hedging, net | -74,5 | 82,8 | -39,9 | 25,3 | -31,0 | 63,6 | -29,5 | 26,2
Derivatives, hedging of loans, net | -180,1 | -57,6 | 0,0 | 9,9 | -170,6 | -59,2 | -13,5 | 16,6
Total | 268,0 | -32,3 | 15,6 | -9,4 | 264,4 | -22,1 | 26,3 | -8,8

1) Based on a 12-month foreign currency operative cash flow forecast.
At the end of 2023, the foreign currency operative cash flow forecast for 2024 was EUR 542
million of which 61% was hedged (58%). 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, 2023 and without hedging, wo uld increase EBITDA approximately EUR 4 million,
and a 10 percent strengthening of the euro against the Chinese renminbi without hedging
would increase EBITDA 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 6
and 13 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 4.7 million (0.3). Cash flow hedge accounting deals have been done
to hedge highly probable currency flows. In 2023, 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
Swedish krona, the Polish zloty, the Brazilian real and the Chinese renminbi.
Kemira's main equity items denominated in foreign currencies are in the Canadian dollar, the
Swedish krona and 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

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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 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 creates re-pricing and price risks generating fluctuation in cash
flows and fair values of loans and derivatives . A total of 77% (83%) of the Group’s entire net
debt portfolio including lease liabilities was fixed at the end of 2023. The net financing cost of
the Group w as 5.6% (4.2%). 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 the 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 16 months (22) at the end of 2023. On the balance sheet date, the average
interest rate of the loan portfolio was approximately 2.8% (2.4%).
During 2024, Kemira will repri ce 30% (21%) of the Group's net debt portfolio as shown in the
table below.

2023 |  |  | 1–5 years |  |  |
Time to interest rate fixing, EUR million | <1 year |  |  | > 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
2022 |  |  | 1–5 years |  |  |
Time to interest rate fixing, EUR million | <1 year |  |  | > 5 years |  | Total
Floating net liabilities | 132.3 |  | — |  | — |  | 132.3
Fixed net liabilities ¹⁾ | — |  | 290.0 |  | 200.0 |  | 490.0
Total | 132.3 |  | 290.0 |  | 200.0 |  | 622.3

1) Excluding lease liabilities.
If interest rates rose by one percentage point on January 1, 2024, the resulting net interest
expenses before taxes resulting from loans, cash, deposits, and money market investments
over the next 12 months would decrease by approximately EUR 0.5 million (-0.3).
Consequen tly, a decrease of one percentage point would increase net interest expenses by
EUR 0.5 million.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 79
Commodity price risk
Kemira Group is exposed to commodity market price variation, mainly from 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.
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 Sweden
are hedged. The outstanding electricity derivatives are treated in accordance with cash flow
hedge accounting. The forecast 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
EUR +/- 3.6 million (+/- 11.9). Th is impact would be in equity.
In addition to the 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 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 EUR +/- 0.0 million (-). 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, 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 being monitored on a regular basis.
The counterparty risk in treasury operations is due to the fact that a contractual party to a
financing transaction is not necessarily 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 414.8 million (342.5). 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 2023 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 wo rth USD 75 million,
en abling Group companies in the USA to sell certain account receivables to the counterpar ty.
The credit risk of the accounts receivables is transferred to the financial institutions and
95.1% 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 30.5 million (60.3) on December 31, 2023. The amounts
recognized in the balance sheet are EUR 4.6 million (4.3) in assets and EUR 0.9 m illion (1.4) in
liabilities.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 80
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 2023, the Group’s cash and cash equivalents stood at
EUR 402.5 million (250.6), of which cash in bank accounts accounted for EUR 271.0 million
(245.3) and bank deposits EUR 131.5 million (5.3). In addition, the Group has a revolving credit
facility of EUR 400 milli on linked to sustainability targets whic h will mature on April 17, 2026.
At the turn of the year 2023/2024, 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 2023, the Group did
not have commercial papers outstanding on the market (30).
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 121.4 million
(148.9) 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 2023 was 2.5 years
(3.2).
LOAN REPAYMENTS

2023 |  |  |  |  |  |  |  | Total drawn
Loan type, EUR million ¹⁾ | Undrawn | 2024 | 2025 | 2026 | 2027 | 2028 | 2029-
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
Total interest-bearing liabilities | 1,000.0 | 328.8 | 218.3 | 35.8 | 133.9 | 209.5 | 37.1 | 963.4
2022 |  |  |  |  |  |  |  | Total drawn
Loan type, EUR million ¹⁾ | Undrawn | 2023 | 2024 | 2025 | 2026 | 2027 | 2028-
Loans from financial institutions | — | — | — | 192.8 | — | 120.0 | — | 312.8
Bonds | — | — | 200.0 | — | — | — | 200.0 | 400.0
Revolving credit facility | 400.0 | — | — | — | — | — | — | —
Lease liabilities | — | 39.4 | 30.7 | 22.3 | 16.9 | 11.4 | 78.2 | 198.8
Commercial paper program | 570.0 | 30.0 | — | — | — | — | — | 30.0
Other interest-bearing non-current liabilities | — | 15.9 | 0.8 | — | — | — | — | 16.7
Other interest-bearing current liabilities | — | 123.0 | — | — | — | — | — | 123.0
Total interest-bearing liabilities | 970.0 | 208.3 | 231.4 | 215.1 | 16.9 | 131.4 | 278.2 | 1,081.3

1) Loan structure presented by type and maturity using contractual undiscounted payments.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 81
5.6 DERIVATIVE INSTRUMENTS

Nominal values, EUR million | Maturity structure | 2023 | 2022
2024 | 2025 | 2026 | 2027 | 2028 | Total | Total
Currency derivatives |  |  |  |  |  |  |
Forward contracts | 789.6 | — | — | — | — | 789.6 | 619.9
Inflow | 440.2 | — | — | — | — | 440.2 | 350.5
of which cash flow hedges | 48.7 | — | — | — | — | 48.7 | 32.4
Outflow | 349.3 | — | — | — | — | 349.3 | 269.4
of which cash flow hedges | 217.1 | — | — | — | — | 217.1 | 39.2
Commodity derivatives |  |  |  |  |  |  |
Commodity forward contracts (GWh) | 372.8 | 182.7 | 67.9 | 14.5 | — | 637.8 | 1,129.3
of which cash flow hedges | 372.8 | 182.7 | 67.9 | 14.5 | — | 637.8 | 1,129.3

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 | 2023 | 2022
Positive | Negative | Net | Positive | Negative | Net
Currency derivatives |  |  |  |  |  |
Forward contracts | 8.4 | -4.2 | 4.2 | 15.0 | -3.6 | 11.3
of which cash flow hedges | 4.8 | -0.1 | 4.7 | 1.7 | -1.4 | 0.3
Commodity derivatives |  |  |  |  |  |
Commodity forward contracts ¹⁾ | 11.2 | -3.5 | 7.7 | 80.0 | -0.2 | 79.8
of which cash flow hedges | 11.2 | -3.5 | 7.7 | 80.0 | -0.2 | 79.8

1) Includes fair value of electricity forward contracts of EUR 1.6 million (24.4) and EUR -2.1 million (-0.0) maturing after the
year 2024. Commodity derivatives are mainly electricity derivatives.
The Group has ISDA or EFET Master netting agreements with the counterparties of
derivative contracts. They allow the net settlement of outstanding market value within the
scope of the agreement in case of non-payment defined in the agreement. At the end of the
reporting period, counterparty risk according to master netting agreements was EUR 15.4
million (91.9) to Kemira and EUR 3.5 mi llion (0.8) to counterparties.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 82
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 market.
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 under 12 months are presented in the balance sheet as part of
line item Trade payables and other liabilities where as fair value of derivatives with maturity
after 12 months are posted under Non-current liabilities to 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 interest rate swaps,
electricity derivatives and foreign exchange derivatives meet 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 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 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, 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 hedge 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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KEMIRA 2023 | FINANCIAL STATEMENTS | 83
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⁾ | 2023 Total | 2022 Total
Interim CEO Petri Castrén (since 18 July 2023) ²⁾ | 228,722 | — | — | 228,722 | —
CEO Jari Rosendal (until 11 July 2023) ³⁾ | 560,532 | 637,720 | 3,176,802 | 4,375,054 | 1,453,573
CEO's Deputy Jukka Hakkila ⁴⁾ | 197,416 | 100,114 | 311,285 | 608,815 | 424,703
Other members of Management Board ⁵⁾ ⁶⁾ | 2,077,802 | 833,528 | 1,928,214 | 4,839,544 | 3,622,495
Total | 2,835,749 | 1,571,362 | 5,416,301 | 9,823,412 | 5,500,771

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 benefits related to Petri Castrén since 18 July 2023.
3) The CEO Jari Rosendal left on sick leave on July 11, 2023 and he 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 in accordance with the terms
of the plans to his death estate. These are included in the figures disclosed in 2023.
4) Jukka Hakkila acted as 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, 2023 are EVP Strategy Linus Hildebrandt, CTO Matthew R.
Pixton, EVP Operational Excellence Esa-Matti Puputti, President Segment Industry & Water Tuija Pohjolainen-Hiltunen,
President Segment Pulp & Paper Antti Salminen 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 plans.
6) Includes benefits related to Petri Castrén until 17 July 2023.
Employment terms and conditions of the Interim CEO
Remuneration of the Interim CEO comprises a monthly salary including a car benefit and 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 based on his main position as CFO and it 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 Interim CEO belongs to the Finnish Employees’ Pension Act (TyEL) scheme, which
provides pension security based on the years of service and earnings as stipulated by law. No
supplementary pension has been offered to the Interim CEO.
The mutual termination notice period is 6 months. The Interim CEO is entitled to a severance
pay of 6 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 22, 2023, 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 10 and 19, 2023 the 13,097 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 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.
The meeting fees are paid in cash and travel expenses are paid according to Kemira's travel
policy.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 84
MEMBERS OF THE BOARD OF DIRECTORS

| Number of shares | Share value, EUR | Cash compensation, EUR ⁵⁾ | 2023 Total, EUR | 2022 Total, EUR
Matti Kähkönen, Chair | 3,019 | 47,644 | 80,556 | 128,200 | 119,600
Annika Paasikivi, Vice Chair | 1,714 | 27,049 | 49,551 | 76,600 | 71,600
Wolfgang Büchele (until March 22, 2023) | — | — | 5,400 | 5,400 | 59,600
Shirley Cunningham (until March 22, 2023) | — | — | — | — | 62,600
Tina Sejersgård Fanø (since March 24, 2022) | 1,330 | 20,989 | 43,011 | 64,000 | 54,200
Werner Fuhrmann | 1,330 | 20,989 | 45,411 | 66,400 | 59,600
Timo Lappalainen | 1,714 | 27,049 | 52,551 | 79,600 | 77,600
Fernanda Lopes Larsen (since March 22, 2023) | 1,330 | 20,431 | 43,569 | 64,000 | —
Kristian Pullola | 1,330 | 20,989 | 41,811 | 62,800 | 59,000
Jari Paasikivi, Chair (until March 24, 2022) | — | — | — | — | 3,600
Mikael Staffas (since March 22, 2023) | 1,330 | 20,989 | 38,211 | 59,200 | —
Total | 13,097 | 206,132 | 400,068 | 606,200 | 567,400

5) Includes both annual fees and meeting fees.
TRANSACTIONS CARRIED OUT WITH RELATED PARTIES

EUR million | 2023 | 2022
Revenue |  |
Associated companies | 0.0 | 0.1
Leases, purchases of goods and services |  |
Associated companies | 31.6 | 25.3
Pension Fund Neliapila | 0.8 | 0.7
Total | 32.4 | 25.9
Receivables |  |
Associated companies | 5.7 | 0.0
Liabilities |  |
Associated companies | 7.2 | 4.4
Pension Fund Neliapila | 0.7 | 1.4

Real estate owned by Pension Fund Neliapila is leased to the Group. 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. The assets include Kemira Oyj's shares
representing 0.07% of the company's outstanding shares. Supplementary benefit 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 the associates are presented in Note 7.1.
Commitments and contingent liabilities.
There were no loans granted to key management personnel at the end of 2023 or 2022, 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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KEMIRA 2023 | FINANCIAL STATEMENTS | 85
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
JSC "Kemira HIM" | St. Petersburg | Russia | 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 (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 | 15.8 | 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 (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
Kemira Chemicals (Yanzhou) Co., Ltd. | Yanzhou City | China | 100.0 | 100.0 | 0.0

| City | Country | Kemira Group's holding, % | Kemira Oyj's holding, % | Non- controlling interest's holding, %
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 Canada Inc. | St. Catharines | Canada | 100.0 | 100.0 | 0.0
Kemira Chemicals Germany GmbH | Frankfurt am Main | Germany | 100.0 | 0.0 | 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 Chemicals, Inc. | Atlanta, GA | United States | 100.0 | 60.8 | 0.0
Kemira Chemie GesmbH | 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 Germany GmbH | Frankfurt am Main | Germany | 100.0 | 100.0 | 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

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| City | Country | Kemira Group's holding, % | Kemira Oyj's holding, % | Non- controlling interest's holding, %
Kemira Kopparverket KB | Helsingborg | Sweden | 100.0 | 0.0 | 0.0
Kemira KTM d.o.o. | Ljubljana | Slovenia | 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 | 2023 | 2022
Net book value on Jan 1 | 5.1 | 4.8
Additions | 0.0 | 0.0
Decreases | 0.0 | 0.0
Share of the profit/loss for the period | 0.1 | 0.3
Exchange rate differences | -0.3 | 0.0
Net book value on Dec 31 | 4.8 | 5.1

A summary of the a ssociates' financial information is presented in the following table. The
presented figures equal the figures in the financial statements of the each associate, not the
portion of Kemira Group.

EUR million | 2023 | 2022
Assets | 52.3 | 59.0
Liabilities | 38.6 | 44.8
Revenue | 33.4 | 25.3
Profit (+) / loss (-) for the period | 0.6 | 0.8

Related party transactions carried out with associates are disclosed in Note 6.1. Related
parties.
NON-CONTROLLING INTERESTS

EUR million | 2023 | 2022
Net book value on Jan 1 | 14.7 | 13.9
Dividends | -8.3 | -6.9
Share of the profit for the period | 12.2 | 8.0
Exchange rate differences | 0.8 | -0.3
Net book value on Dec 31 | 19.4 | 14.7

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 87
CHANGES IN THE GROUP STRUCTURE
New subsidiaries acquired and established
• Kemira acquired the remaining 90% share of SimAnalytics Oy on January 24, 2023.
• Kemira established a new company Kemira Chemicals Pte. Ltd on February 8, 2023 to
Singapore.
• Kemira established a new company KEMIRA (MALAYSIA) SDN.BHD on January 1, 2023 to
Malaysia.
Changes in the holdings on group companies with the Group
• Kemira Water Solutions Brasil and Kemwater Brasil Ltda merged with and into Kemira
Chemicals Brasil Ltda on June 30, 2023.

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 88
7. Off-balance sheet items
7.1 COMMITMENTS AND CONTINGENT LIABILITIES
COMMITMENTS

EUR million | 2023 | 2022
Guarantees |  |
On behalf of own commitments | 109.5 | 108.4
On behalf of associates | 11.7 | 12.5
On behalf of others | 2.7 | 2.5
Other obligations |  |
On behalf of own commitments | 0.7 | 0.7
On behalf of others | 0.0 | 16.3

The most significant off-balance sheet investments commitments
On December 31, 2023, major amounts of contractual commitments for the acquisition of
property, plant, and equipment were EUR 6.0 million (42.8) 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
While the Group is involved in some legal proceedings, such as litigations, arbitrations,
administrative and tax proceedings incidental to its global operations, the Group does not
expect that the outcome of any of these legal proceedings will have a materially adverse
effect upon its consolidated results or financial position.
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 concerns 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
liability is disclosed in the notes.
7.2 EVENTS AFTER THE BALANCE SHEET DATE
On February 2, 2024, Ke mira announced that it had closed the divestment of its Oil & Gas
related portfolio. Approximately 250 employees will transfer to the buyer as part of the
transaction, which includes Kemira’s manufacturing facilities in Mobile, Columbus and
Aberdeen in the United States and the novel liquid polymer (NLP) manufacturing assets in
Botlek, the Netherlands. The closing of the Teesport manufacturing facility in the United
Kingdom is expected to happen later, subject to site-specific closing conditions.

CONSOLIDATED FINANCIAL STATEMENTS (IFRS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 89
Kemira Oyj's income statement

Thousand EUR | Note | 1.1.-31.12.2023 | 1.1.-31.12.2022
Revenue | 2 | 2,030,416 | 2,206,658
Change in inventory of finished goods and in work in progress +/- | 4 | -60,079 | 64,334
Other operating income | 3 | 3,262 | 3,435
Materials and services | 4 | -1,077,936 | -1,413,093
Personnel expenses | 5 | -68,544 | -48,372
Depreciation, amortization and impairments | 6 | -23,738 | -22,273
Other operating expenses | 7 | -631,371 | -592,545
Operating profit |  | 172,010 | 198,144
Financial income and expenses | 8 | -24,926 | 172,737
Profit before appropriations and taxes |  | 147,084 | 370,881
Appropriations | 9 | -2,739 | -12,303
Income taxes | 10 | -40,154 | -43,844
Profit for the financial year |  | 104,191 | 314,734

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 90
Kemira Oyj's balance sheet

Thousand EUR | Note | 31.12.2023 | 31.12.2022
ASSETS |  |  |
NON-CURRENT ASSETS |  |  |
Intangible assets | 11 | 51,537 | 58,208
Tangible assets | 12 | 36,383 | 35,277
Investments | 13 |  |
Holdings in Group undertakings |  | 1,090,711 | 1,049,503
Receivables from Group companies |  | 445,180 | 552,996
Other shares and holdings |  | 98,339 | 99,609
Other investments |  | 6,127 | 6,127
Total investments |  | 1,640,357 | 1,708,236
Total non-current assets |  | 1,728,277 | 1,801,721
CURRENT ASSETS |  |  |
Inventories | 14 | 141,366 | 213,498
Non-current receivables | 15 |  |
Deferred tax assets |  | 15,595 | 15,446
Loan receivables |  | 400 | 400
Other receivables |  | 1,608 | 21,107
Total non-current receivables |  | 17,603 | 36,952
Current receivables | 15 | 460,922 | 570,083
Money market investments | 16 | 119,822 | 0
Cash and cash equivalents |  | 215,787 | 194,464
Total current assets |  | 955,499 | 1,014,997
Total assets |  | 2,683,777 | 2,816,718

Thousand EUR | Note | 31.12.2023 | 31.12.2022
EQUITY AND LIABILITIES |  |  |
CAPITAL AND RESERVES | 17 |  |
Share capital |  | 221,762 | 221,762
Share premium account |  | 257,878 | 257,878
Fair value reserve |  | 9,961 | 56,764
Unrestricted equity reserve |  | 199,964 | 199,964
Retained earnings |  | 409,525 | 188,104
Profit for the financial year |  | 104,191 | 314,734
Total equity |  | 1,203,281 | 1,239,207
APPROPRIATIONS | 18 | 15,837 | 13,098
PROVISIONS | 19 | 52,957 | 52,230
LIABILITIES |  |  |
Non-current liabilities | 20 |  |
Deferred tax liabilities |  | 2,581 | 14,191
Other non-current liabilities |  | 525,786 | 726,122
Total Non-current liabilities |  | 528,367 | 740,313
Current liabilities | 21 | 883,335 | 771,871
Total liabilities |  | 1,411,702 | 1,512,184
Total equity and liabilities |  | 2,683,777 | 2,816,718

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 91
Kemira Oyj's cash flow statement

Thousand EUR | 2023 | 2022
CASH FLOWS FROM OPERATING ACTIVITIES |  |
Net profit for the period | 104,191 | 314,734
Adjustments for |  |
Depreciation according to plan | 23,738 | 22,273
Unrealized exchange differences (net) | 8,733 | -20,748
Financial income and expenses (+/-) | 24,926 | -172,737
Income taxes | 40,154 | 43,844
Other adjustments (+/-) | 4,070 | 8,627
Operating profit before change in working capital | 205,814 | 195,993
Change in working capital |  |
Increase (-) / decrease (+) in non-interest-bearing current receivables | 18,283 | -99,503
Increase (-) / decrease (+) in inventories | 70,237 | -73,494
Increase (+) / decrease (-) in short-term interest-free debts | -46,073 | 27,598
Change in working capital | 42,448 | -145,399
Cash generated from operations before financial items and taxes | 248,261 | 50,595
Interest and other finance costs paid | -33,531 | -24,113
Interest and other finance income received | 78,136 | 35,083
Realized exchange differences (net) | 11,591 | 22,184
Dividends received | 39,621 | 137,389
Income taxes paid | -59,530 | -4,929
Net cash from operating activities | 284,549 | 216,208

Thousand EUR | 2023 | 2022
CASH FLOWS FROM INVESTING ACTIVITIES |  |
Acquisitions of subsidiary shares | -6,476 | 0
Acquisitions of other investments | 0 | -1
Purchases of intangible assets | -10,244 | -14,330
Purchases of tangible assets | -7,987 | -8,858
Proceeds from sale of subsidiary shares | 28,259 | 0
Proceeds from sale of investments | 400 | 0
Proceeds from sale of tangible and intangible assets | 0 | 2,489
Increase (-) / decrease (+) in loan receivables | -9,131 | 51,637
Net cash used in investing activities | -5,178 | 30,937
Cash flows before financing | 279,371 | 247,145
CASH FLOWS FROM FINANCING ACTIVITIES |  |
Proceeds from non-current liabilities (+) | 127 | 195,910
Repayment of non-current liabilities (-) | 0 | -150,000
Short-term financing, net increase (+) / decrease (-) | -35,730 | -14,456
Dividends paid | -95,236 | -88,942
Group contribution paid | -9,000 | -70,500
Net cash used in financing activities | -139,839 | -127,988
Net increase (+) / decrease (-) in cash and cash equivalents | 139,532 | 119,157
Cash and cash equivalents on Dec 31 | 335,609 | 194,464
Exchange gains (+) / losses (-) on cash and cash equivalents | 1,612 | 1,201
Cash and cash equivalents on Jan 1 | 194,464 | 74,107
Net increase (+) / decrease (-) in cash and cash equivalents | 139,532 | 119,157

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 92
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.
COMPARABILITY OF FINANCIAL
STATEMENTS
Kemira Oyj divested the colorant business on May 4, 2023,
which affects the comparability of the revenue and related
expenses between financial periods. Revenue of the colorant
business totaled EUR 5.6 million (EUR 18.4 million) during the
financial year.
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.

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 93
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, EU R 1.6 million (2.6), is included in the
balance sheet.
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.

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 94
2. Revenue

Thousand EUR | 2023 | 2022
Revenue by segments |  |
Pulp & Paper | 887,894 | 1,033,704
Industry & Water | 524,291 | 579,102
Intercompany revenue | 618,231 | 593,852
Total | 2,030,416 | 2,206,658
Distribution of revenue by geographical area as a percentage of total revenue |  |
Finland, domicile of the parent company | 25 | 28
Other Europe, Middle East and Africa | 53 | 54
Americas | 12 | 10
Asia Pacific | 9 | 9
Total | 100 | 100

3. Other operating income

Thousand EUR | 2023 | 2022
Gains on the sale of property, plant and equipment | 143 | 2,402
Insurance compensation received | 2,481 | 603
Other income from operations | 638 | 430
Total | 3,262 | 3,435

4. Material and services

Thousand EUR | 2023 | 2022
Change in stocks of finished goods and in work in progress | 60,079 | -64,334
Materials and services |  |
Materials and supplies |  |
Purchases during the financial year | 1,055,338 | 1,423,051
Change in inventories (increase - / decrease +) | 13,628 | -19,281
External services | 8,970 | 9,323
Total | 1,077,936 | 1,413,093

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 95

5. Personnel expenses and number of personnel
Thousand EUR | 2023 | 2022
Personnel costs |  |
Wages and salaries | 58,900 | 49,228
Pension expenses ¹⁾ | 8,101 | -2,767
Other personnel expenses | 1,544 | 1,911
Total | 68,544 | 48,372
Thousand EUR | 2023 | 2022
Management wages and salaries ²⁾ |  |
CEO | 4,604 | 1,454
CEO's Deputy | 609 | 425
Board of Directors | 606 | 567
Total | 5,819 | 2,446
Thousand EUR | 2023 | 2022
Salaries and fees include bonuses and share-based payments |  |
CEO | 3,815 | 715
CEO's Deputy | 411 | 234
Total | 4,226 | 949

In 2021, salaries and wages totaled EUR 46,027 thousand.
1) In 2022, the pension expenses included a return of surplus of EUR 10.0 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 | 2023 | 2022
Pulp & Paper segment | 101 | 102
Industry & Water segment | 39 | 38
Other, of which | 357 | 353
R&D and Technology | 164 | 167
Total | 497 | 493
Average number of personnel | 500 | 502

6. Depreciation, amortization and impairments

Thousand EUR | 2023 | 2022
Depreciation according to plan and impairment |  |
Intangible rights | 13,219 | 11,114
Impairment of intangible rights | 55 | 0
Goodwill | 3,626 | 3,586
Other intangible assets | 0 | 687
Buildings and constructions | 666 | 665
Machinery and equipment | 6,154 | 6,220
Impairment of machinery and equipment | 17 | 0
Total | 23,738 | 22,273

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 96
7. Other operating expenses

Thousand EUR | 2023 | 2022
Rents | 9,363 | 9,290
Intercompany tolling manufacturing charges | 241,571 | 235,759
Other intercompany charges | 166,582 | 145,253
Freights and delivery expenses | 125,373 | 135,599
External services | 22,082 | 18,502
Other operating expenses ¹⁾ | 66,399 | 48,142
Total | 631,371 | 592,545

1) In 2023, the other operating expenses included a net icrease 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). In 2022, the operating expenses included a net decrease of EUR 4,968 thousand in the obligatory provisions (a
decrease of EUR 574 thousand in environmental expenses and EUR 4,394 thousand in restructuring expenses).
AUDITOR'S FEES AND SERVICES

Thousand EUR | 2023 | 2022
Audit fees | 612 | 499
Tax services | 37 | 278
Other services | 116 | 50
Total | 765 | 827

Ernst & Young Oy acts as the principal auditor for Kemira Oyj.
8. Finance income and expenses

Thousand EUR | 2023 | 2022
Dividend income |  |
From Group companies | 39,621 | 137,389
Total | 39,621 | 137,389
Other interest and finance income |  |
Interest income from Group companies | 63,275 | 38,188
Interest income from others | 7,953 | 1,579
Other finance income from Group companies | 572 | 607
Exchange gains from Group companies (net) | 0 | 24,276
Exchange gains from others (net) | 10,059 | 0
Total | 81,859 | 64,650
Total finance income | 121,481 | 202,038
Change in value on non-current assets |  |
Group companies ¹⁾ | -97,024 | 0
Total | -97,024 | 0
Interest expenses and other finance expenses |  |
Interest expenses to Group companies | -6,767 | -1,274
Interest expenses to others | -25,604 | -19,612
Other finance expenses to others | -2,121 | -2,623
Exchange losses from Group companies (net) | -14,889 | 0
Exchange losses from others (net) | 0 | -5,791
Total | -49,382 | -29,301
Total finance expenses | -146,406 | -29,301
Total finance income and expenses | -24,926 | 172,737

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 97

Thousand EUR | 2023 | 2022
Exchange gains and losses |  |
Realized | 11,591 | 22,184
Unrealized | -16,422 | -3,699
Total | -4,830 | 18,485

1) Changes in the value of non-current assets in Group companies mainly consist of write-down of Kemira Chemicals Inc.
subsidiary shares related to the sale of the Oil & Gas business. Kemira has completed the divestment in February 2024.
9. Appropriations

Thousand EUR | 2023 | 2022
Change in accumulated depreciation difference (increase - / decrease +) |  |
Intangible rights | 382 | -420
Other intangible assets | -457 | 231
Goodwill | -6 | 0
Buildings and structures | -268 | -351
Machinery and equipment | -2,386 | -2,760
Other tangible assets | -3 | -3
Total | -2,739 | -3,303
Group contribution |  |
Group contributions received | 7,000 | 0
Group contributions given | -7,000 | -9,000
Total | 0 | -9,000
Total appropriations | -2,739 | -12,303

10. Income taxes

Thousand EUR | 2023 | 2022
Income taxes on ordinary activities | -38,578 | -42,205
Income taxes for prior years | 69 | -29
Change in deferred taxes | 59 | -1,065
Other taxes and parafiscal charges | -1,704 | -546
Total | -40,154 | -43,844

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 98
11. Intangible assets

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
2022, Thousand EUR | Intangible rights | Goodwill | Advance payments and construction in progress | Other intangible assets | Total
Acquisition cost on Jan 1 | 275,030 | 32,364 | 3,061 | 39,878 | 350,333
Additions | 5,521 | 0 | 8,809 | 0 | 14,330
Decreases | -3,254 | 0 | 0 | 0 | -3,254
Transfers | 2,536 | 0 | -2,536 | 0 | 0
Acquisition cost on Dec 31 | 279,833 | 32,364 | 9,334 | 39,878 | 361,408
Accumulated amortization on Jan 1 | -241,030 | -10,847 | 0 | -39,191 | -291,067
Accumulated amortization relating to decreases | 3,201 | 0 | 0 | 0 | 3,201
Amortization during the financial year | -11,061 | -3,586 | 0 | -687 | -15,334
Accumulated amortization on Dec 31 | -248,890 | -14,433 | 0 | -39,878 | -303,200
Net book value on Dec 31 | 30,943 | 17,931 | 9,334 | 0 | 58,208

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 99
12. Tangible assets

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 at 31 Dec | 1,509 | 9,453 | 21,543 | 2 | 3,877 | 36,383
2022, 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 | 1,071 | 15,509 | 98,130 | 343 | 1,960 | 117,014
Additions | 208 | 533 | 3,698 | 0 | 4,419 | 8,858
Decreases | -17 | -99 | -1,085 | 0 | 0 | -1,201
Transfers | 0 | 316 | 1,338 | 0 | -1,654 | 0
Acquisition cost on Dec 31 | 1,263 | 16,261 | 102,080 | 343 | 4,725 | 124,671
Accumulated depreciation on Jan 1 | -110 | -6,933 | -76,159 | -341 | 0 | -83,543
Accumulated depreciation relating to decreases | 0 | 83 | 881 | 0 | 0 | 964
Depreciation during the financial year | 0 | -649 | -6,165 | 0 | 0 | -6,814
Accumulated depreciation on Dec 31 | -110 | -7,499 | -81,443 | -341 | 0 | -89,393
Net book value on Dec 31 | 1,153 | 8,761 | 20,636 | 2 | 4,725 | 35,277

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13. Investments

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
2022, 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 | 396,546 | 99,608 | 6,127 | 1,551,785
Additions | 0 | 255,661 | 1 | 0 | 255,662
Decreases | 0 | -99,211 | 0 | 0 | -99,211
Net book value on Dec 31 | 1,049,503 | 552,996 | 99,609 | 6,127 | 1,708,236

14. Inventories

Thousand EUR | 2023 | 2022
Raw materials and consumables | 43,225 | 56,854
Finished goods | 88,525 | 148,604
Advance payments | 9,615 | 8,040
Total | 141,366 | 213,498

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15. Receivables

Thousand EUR | 2023 | 2022
Non-current receivables |  |
Receivables from others |  |
Loan receivables | 400 | 400
Other receivables | 1,608 | 21,107
Total | 2,008 | 21,507
Deferred tax assets |  |
From appropriations | 289 | 376
From reservations | 9,823 | 9,691
From foreign currency and electricity hedging | 91 | 0
From revaluations | 4,285 | 4,285
From other deferred tax receivables | 1,107 | 1,094
Total | 15,595 | 15,446
Total non-current receivables | 17,603 | 36,952
Current receivables |  |
Receivables from Associated companies |  |
Trade receivables | 40 | 0
Total | 40 | 0

Thousand EUR | 2023 | 2022
Receivables from Group companies |  |
Trade receivables | 131,920 | 108,075
Loan receivables | 93,415 | 160,638
Advances paid | 18,836 | 18,836
Other current receivables | 7,018 | 0
Prepayments and accrued income | 25,604 | 16,555
Total | 276,793 | 304,104
Receivables from others |  |
Trade receivables | 137,406 | 180,297
Advances paid | 133 | 72
Other current receivables | 3,626 | 4,097
Prepayments and accrued income | 42,924 | 81,513
Total | 184,088 | 265,978
Total current receivables | 460,922 | 570,083
Total receivables | 478,525 | 607,035
Accrued income from others |  |
Taxes | 18,251 | 2,561
Hedging accruals | 18,060 | 65,845
Prepaid expenses | 4,285 | 3,831
Accrued income | 1,486 | 8,048
Other | 841 | 1,228
Total | 42,924 | 81,513

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16. Money market investments

Thousand EUR | 2023 | 2022
Money market investments |  |
Book value | 119,822 | 0
Fair value | 120,000 | 0
Difference | -178 | 0

Money market investments include deposits and commercial paper investments with maturity
less than three months.

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17. Capital and reserves

Thousand EUR | 2023 | 2022
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 | 56,764 | 19,387
Cash flow hedges | -46,803 | 37,378
Fair value reserve on Dec 31 | 9,961 | 56,764
Total restricted equity on Dec 31 | 489,600 | 536,404
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 | 502,839 | 275,443
Dividend distributions | -95,236 | -88,942
Share-based incentive plan |  |
Shares given | 1,922 | 1,689
Shares returned | 0 | -86
Retained earnings on Dec 31 | 409,525 | 188,104
Profit for the financial period | 104,191 | 314,734
Total unrestricted equity on Dec 31 | 713,680 | 702,803
Total capital and reserves on Dec 31 | 1,203,281 | 1,239,207
Total distributable funds on Dec 31 | 713,680 | 702,803

CHANGE IN TREASURY SHARES

Thousand | EUR | Number of shares
Acquisition value/number on Jan 1, 2023 | 13,397 | 1,990
Change | -1,800 | -267
Acquisition value/number on Dec 31, 2023 | 11,596 | 1,723

18. Accumulated appropriations

Thousand EUR | 2023 | 2022
Appropriations |  |
Accumulated depreciation difference | 15,837 | 13,098
Deferred tax liabilities on accumulated appropriations | 3,167 | 2,620

KEMIRA OYJ FINANCIAL STATEMENTS (FAS) | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

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19. Obligatory provisions

Thousand EUR | 2023 | 2022
Non-current provisions |  |
Pension provisions | 5,536 | 5,469
Environmental provisions | 9,835 | 14,185
Restructuring | 24,390 | 19,544
Total non-current provisions | 39,762 | 39,197
Current provisions |  |
Environmental provisions | 4,890 | 6,116
Restructuring | 8,305 | 6,916
Total current provisions | 13,195 | 13,032
Total provisions | 52,957 | 52,230
Change in obligatory provisions |  |
Obligatory provisions on Jan 1 | 52,230 | 57,066
Utilised during the year | -12,031 | -8,338
Increase during the year | 12,758 | 3,501
Obligatory provisions on Dec 31 | 52,957 | 52,230

Environmental risks and liabilities are disclosed in Note 4.6 in the Notes to the Consolidated
Financial Statements.
20. Non-current liabilities

Thousand EUR | 2023 | 2022
Loans from financial institutions | 310,887 | 312,359
Corporate bonds | 198,850 | 397,853
Other non-current liabilities | 16,049 | 15,910
Total | 525,786 | 726,122
Maturity later than five years |  |
Corporate bonds | 0 | 200,000
Other liabilities | 16,037 | 0
Total | 16,037 | 200,000
Deferred tax liabilities |  |
From foreign currency and electricity hedging | 2,581 | 14,191
Total | 2,581 | 14,191
Total non-current liabilities | 528,367 | 740,313

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21. Current liabilities

Thousand EUR | 2023 | 2022
Liabilities to Group companies |  |
Loan liabilities | 8,438 | 14,323
Trade payables | 155,944 | 176,401
Other liabilities | 285,937 | 250,316
Accrued expenses | 7,663 | 1,130
Total | 457,981 | 442,169
Liabilities to others |  |
Corporate Bonds | 199,597 | 0
Commercial papers | 0 | 29,815
Prepayments received | 1,064 | 1,308
Trade payables | 95,134 | 145,428
Other liabilities | 9,235 | 24,330
Accrued expenses | 120,323 | 128,822
Total | 425,354 | 329,702
Total current liabilities | 883,335 | 771,871
Accrued expenses and deferred income |  |
Personnel expenses | 22,727 | 20,241
Interest expenses and exchange rate differences | 10,958 | 10,563
Cost accruals | 44,827 | 53,671
Income tax accruals | 38,578 | 42,205
Other | 3,233 | 2,142
Total | 120,323 | 128,822

22. Derivatives

| 2023 | 2022
Nominal values, thousand EUR | Total | Total
Currency derivatives |  |
Forward contracts | 812,819 | 645,600
of which cash flow hedges | 110,463 | 71,572
Commodity derivatives |  |
Commodity forward contracts (MWh) ¹⁾ | 525,989 | 1,034,472
of which cash flow hedges | 525,989 | 1,034,472

1) Mainly electricity forward contracts

| 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 ¹⁾ | 10,836 | 533 | 10,303
of which cash flow hedges | 10,836 | 533 | 10,303

1) Includes fair value of commodity forward contracts of EUR 1,597 thousand maturing after the year 2024 (21,107).

| 2022
Fair values, thousand EUR | Positive | Negative | Net
Currency derivatives |  |  |
Forward contracts | 14,971 | 4,740 | 10,232
of which cash flow hedges | 1,652 | 1,386 | 266
Commodity derivatives |  |  |
Commodity forward contracts | 70,771 | — | 70,771
of which cash flow hedges | 70,771 | — | 70,771

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23. Collateral and contingent liabilities

Thousand EUR | 2023 | 2022
Given guarantees |  |
On behalf of own commitments |  |
Business related delivery-, environmental and other guarantees | 35,482 | 18,106
On behalf of companies belonging to the same Group |  |
Business and financing guarantees | 527,802 | 535,479
On behalf of associated companies |  |
Business and financing guarantees | 11,718 | 12,499
On behalf of others |  |
Guarantees | 2,436 | 2,296
Other obligations |  |
Loan commitments | 0 | 16,339
Rent liabilities |  |
Maturity within one year | 2,767 | 2,714
Maturity after one year | 3,765 | 6,693
Total | 6,532 | 9,407
Leasing liabilities |  |
Maturity within one year | 1,870 | 2,088
Maturity after one year | 3,551 | 3,968
Total | 5,421 | 6,056
Pledges given |  |
On behalf of own commitments | 0 | 482

24. Related party transactions

Thousand EUR | 2023 | 2022
Related party notes required by the Finnish Companies Act |  |
The most significant Group companies with which the company has loans |  |
Kemira Water Solutions Inc. | 162,690 | 20,579
Kemira Chemicals Oy | 77,400 | 77,400
Kemira Uruguay S.A. | 51,131 | 47,333
Other Group companies | 247,373 | 568,322
Total | 538,594 | 713,634

The parent company finances the subsidiaries through intra-group loan arrangements. 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.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 107
25. Subsidiaries

| Group holding, % | Kemira Oyj holding, %
AS Kemivesi | 100.00 | 100.00
Kemira Argentina S.A. | 100.00 | 15.80
Kemira Cell Sp. z.o.o. | 55.00 | 55.00
Kemira Chemicals, Inc. | 100.00 | 60.80
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 Canada Inc. | 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 Germany GmbH | 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 Świecie Sp. z o.o. | 100.00 | 100.00
Kemira Water Danmark A/S | 100.00 | 100.00
PT Kemira Indonesia | 100.00 | 76.23
PT Kemira Chemicals Indonesia | 99.77 | 99.77
SimAnalytics Oy | 100.00 | 100.00

Kemira Oyj acquired the remaining 90% of the shares of SimAnalytics Oy. 60.80% of the
shares of Kemira Chemicals Inc. was acquired by converting loans to shares in 2023. Kemira
Oyj sold the shares of Kemira Chemicals Brasil Ltda to Kemira Europe Oy in 2023.
The Group's subsidiaries and investment in associates are presented in Note 6.2. in the
Consolidated Financial Statements.

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KEMIRA 2023 | FINANCIAL STATEMENTS | 108
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, 2023, Kemira Oyj’s distributable funds are EUR 713,680,177 of which the net
profit for the period amounts to EUR 104,191,302.
The Board of Directors proposes to the Annual General Meeting to be held on March 20 , 2024
that a dividend of EUR 0.68 per share be distributed. No dividend will be paid on 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 153,619,832 shares are
held outside the company, the total dividends paid would amount to EUR 104,461,486. The
distributable funds of EUR 609,218,691 to be retained as equity.
There have been no material changes in the company’s financial position since December 31,
2023. The liquidity of the company remains good, and the proposed dividend payment does
not risk the solvency of the company.
Helsinki, February 8, 2024

Matti Kähkönen |  | Annika Paasikivi |  | Tina Sejersgård Fanø
Chair |  | Vice Chair |  |
Werner Fuhrmann |  | Timo Lappalainen |  | Fernanda Lopes Larsen
Kristian Pullola |  | Mikael Staffas |  | Petri Castrén
|  |  |  | CEO

BOARD'S PROPOSAL FOR PROFIT DISTRIBUTION AND SIGNATURES | PART OF THE AUDITED FINANCIAL STATEMENTS 2023

KEMIRA 2023 | FINANCIAL STATEMENTS | 109
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 2023. 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.

AUDITOR'S REPORT

KEMIRA 2023 | FINANCIAL STATEMENTS | 110

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 2023, the value of goodwill amounted to 481 million euro representing 14 % of the total assets and 29 % 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 other 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 2023, the value of PVO / TVO shares included in other shares amounted to 304 million euro representing 9 % of the total assets and 18 % 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.

AUDITOR'S REPORT

KEMIRA 2023 | FINANCIAL STATEMENTS | 111
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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance 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.

AUDITOR'S REPORT

KEMIRA 2023 | FINANCIAL STATEMENTS | 112
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 five 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 accordance with the applicable laws and regulations.
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 accordance with the applicable laws and regulations.
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, 8 February 2024
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Rytilahti
Authorized Public Accountant

AUDITOR'S REPORT

KEMIRA 2023 | FINANCIAL STATEMENTS | 113
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 Kemira Oyj's ESEF-
Consolidated Financial Statements
TO THE BOARD OF DIRECTORS OF KEMIRA OYJ
We have performed a reasonable assurance engagement on the iXBRL tagging of the
consolidated financial statements included in the digital files
74370031Y7RK5H88CQ48-2023-12-31-fi.zip of Kemira Oyj (business identity code: 0109823-0)
for the financial year 1.1.-31.12.2023 to ensure that the financial statements are marked/
tagged with iXBRL in accordance with the requirements of Article 4 of EU Commission
Delegated Regulation (EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors and Managing Director
The Board of Directors and Managing Director are responsible for the preparation of the
Report of Board of Directors and financial statements (ESEF financial statements) that
comply with the ESESF RTS. This responsibility includes:
• preparation of ESEF-financial statements in accordance with Article 3 of ESEF RTS
• Tagging the primary financial statements, notes to the financial statements and the entity
identifier information in the consolidated financial statements included within the ESEF-
financial statements by using the iXBRL mark ups in accordance with Article 4 of ESEF RTS
• Ensuring consistency between ESEF financial statements and audited financial
statements.
The Board of Directors and 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 ESEF RTS.
Auditor’s Independence and Quality Control
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
In accordance with the Engagement Letter we will express an opinion on whether the
electronic tagging of the consolidated financial statements complies in all material respects
with the Article 4 of ESEF RTS. We have conducted a reasonable assurance engagement in
accordance with International Standard on Assurance Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the primary financial statements in the consolidated financial
statements complies in all material respects with Article 4 of the ESEF RTS
• whether the tagging of the notes to the financial statements and the entity identifier
information in the consolidated financial statements complies in all material respects with
Article 4 of the ESEF RTS
• whether the ESEF-financial statements are consistent with the audited financial
statements.

ESEF FINANCIAL STATEMENT REPORT

KEMIRA 2023 | FINANCIAL STATEMENTS | 114
The nature, timing and extent of the procedures selected depend on the auditor’s judgement
including the assessment of risk of material departures from requirements sets out in the
ESEF RTS, whether due to fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our statement.
Opinion
In our opinion the tagging of the primary financial statements, notes to the financial
statements and the entity identifier information in the consolidated financial statements
included in the ESEF financial statements 74370031Y7RK5H88CQ48-2023-12-31-fi.zip of
Kemira Oyj for the year ended 31.12.2023 complies in all material respects with the
requirements of ESEF RTS.
Our audit opinion on the consolidated financial statements of Kemira Oyj for the year ended
31.12.2023 is included in our Independent Auditor’s Report dated 8.2.2024. In this report, we
do not express an audit opinion any other assurance on the consolidated financial
statements.
Helsinki 14.2.2024
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Rytilahti
Authorized Public Accountant

ESEF FINANCIAL STATEMENT REPORT

KEMIRA 2023 | FINANCIAL STATEMENTS | 115
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.

| 2023 | 2022 | 2021 | 2020 | 2019
INCOME STATEMENT AND PROFITABILITY |  |  |  |  |
Revenue, EUR million | 3,384 | 3,570 | 2,674 | 2,427 | 2,659
Operative EBITDA, EUR million | 667 | 572 | 426 | 435 | 410
Operative EBITDA, % | 19.7 | 16.0 | 15.9 | 17.9 | 15.4
EBITDA, EUR million | 540 | 559 | 373 | 413 | 382
EBITDA, % | 16.0 | 15.7 | 14.0 | 17.0 | 14.4
Operative EBIT, EUR million | 463 | 362 | 225 | 238 | 224
Operative EBIT, % | 13.7 | 10.1 | 8.4 | 9.8 | 8.4
Operating profit (EBIT), EUR million | 336 | 348 | 170 | 216 | 194
Operating profit (EBIT), % | 9.9 | 9.7 | 6.4 | 8.9 | 7.3
Finance costs (net), EUR million | 44 | 39 | 27 | 35 | 40
% of revenue | 1.3 | 1.1 | 1.0 | 1.4 | 1.5
Profit before tax, EUR million | 292 | 308 | 143 | 181 | 155
% of revenue | 8.6 | 8.6 | 5.4 | 7.5 | 5.8
Net profit for the period (attributable to equity owners of the parent company), EUR million | 199 | 232 | 108 | 131 | 110
% of revenue | 5.9 | 6.5 | 4.0 | 5.4 | 4.1
Return on investment (ROI), % | 11.6 | 12.7 | 7.2 | 9.1 | 8.4
Return of equity (ROE), % | 11.9 | 15.4 | 8.6 | 10.9 | 9.2
Capital employed, EUR million ¹⁾ | 2,156 | 2,238 | 1,995 | 1,965 | 1,998
Operative return on capital employed (ROCE), % ¹⁾ | 21.5 | 16.2 | 11.3 | 12.1 | 11.2
Return on capital employed (ROCE), % ¹⁾ | 15.6 | 15.5 | 8.5 | 11.0 | 9.7
Research and development expenses, EUR million | 34 | 33 | 28 | 29 | 30
% of revenue | 1.0 | 0.9 | 1.1 | 1.2 | 1.1
Organic growth, % | -2 | 27 | 11 | -7 | 0

GROUP KEY FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 116

| 2023 | 2022 | 2021 | 2020 | 2019
CASH FLOW |  |  |  |  |
Net cash generated from operating activities, EUR million | 546 | 400 | 220 | 375 | 386
Proceeds from sale of subsidiaries and property, plant and equipment and intangible assets, EUR million | 10 | 19 | 7 | 2 | 8
Capital expenditure, EUR million | 207 | 198 | 170 | 198 | 204
% of revenue | 6.1 | 5.5 | 6.3 | 8.2 | 7.7
Capital expenditure excl. acquisitions, EUR million | 205 | 198 | 169 | 196 | 201
% of revenue | 6.1 | 5.5 | 6.3 | 8.1 | 7.6
Cash flow after investing activities, EUR million | 349 | 222 | 57 | 173 | 190
BALANCE SHEET AND SOLVENCY |  |  |  |  |
Non-current assets, EUR million | 2,051 | 2,323 | 2,155 | 2,018 | 2,090
Shareholders' equity (Equity attributable to equity owners of the parent company), EUR million | 1,665 | 1,670 | 1,329 | 1,192 | 1,218
Total equity including non-controlling interests, EUR million | 1,684 | 1,685 | 1,343 | 1,205 | 1,231
Total liabilities, EUR million | 1,700 | 1,966 | 1,797 | 1,590 | 1,660
Total assets, EUR million | 3,489 | 3,651 | 3,139 | 2,796 | 2,891
Net working capital | 279 | 362 | 287 | 197 | 211
Interest-bearing net liabilities, EUR million | 535 | 771 | 850 | 759 | 811
Equity ratio, % | 48 | 46 | 43 | 43 | 43
Gearing, % | 32 | 46 | 63 | 63 | 66
Interest-bearing net liabilities per EBITDA | 1.0 | 1.4 | 2.3 | 1.8 | 2.1

| 2023 | 2022 | 2021 | 2020 | 2019
PERSONNEL |  |  |  |  |
Personnel at period-end | 4,915 | 4,902 | 4,926 | 4,921 | 5,062
Personnel (average) | 4,946 | 4,936 | 4,947 | 5,038 | 5,020
of whom in Finland | 806 | 780 | 784 | 790 | 812
Wages and salaries, EUR million | 343 | 339 | 288 | 303 | 304
EXCHANGE RATES |  |  |  |  |
Key exchange rates on Dec 31 |  |  |  |  |
USD | 1.105 | 1.067 | 1.133 | 1.227 | 1.123
CAD | 1.464 | 1.444 | 1.439 | 1.563 | 1.460
SEK | 11.096 | 11.122 | 10.250 | 10.034 | 10.447
CNY | 7.851 | 7.358 | 7.195 | 8.023 | 7.821
BRL | 5.362 | 5.639 | 6.310 | 6.374 | 4.516
PER SHARE FIGURES |  |  |  |  |
Earnings per share (EPS), basic, EUR ²⁾ | 1.30 | 1.51 | 0.71 | 0.86 | 0.72
Earnings per share (EPS), diluted, EUR ²⁾ | 1.28 | 1.50 | 0.70 | 0.86 | 0.72
Net cash generated from operating activities per share, EUR ²⁾ | 3.56 | 2.61 | 1.44 | 2.45 | 2.53
Dividend per share, EUR ²⁾ ³⁾ | 0.68 | 0.62 | 0.58 | 0.58 | 0.56
Dividend payout ratio, % ²⁾ ³⁾ | 52.4 | 41.0 | 82.2 | 67.5 | 77.6
Dividend yield, % ²⁾ ³⁾ | 4.1 | 4.3 | 4.4 | 4.5 | 4.2
Equity per share, EUR ²⁾ | 10.84 | 10.89 | 8.68 | 7.80 | 7.98
Price per earnings per share (P/E ratio) ²⁾ | 12.95 | 9.48 | 18.88 | 15.07 | 18.37
Price per equity per share ²⁾ | 1.55 | 1.32 | 1.54 | 1.66 | 1.66
Price per cash flow from operations per share ²⁾ | 4.72 | 5.49 | 9.27 | 5.28 | 5.24
Dividend paid, EUR million ³⁾ | 104.5 | 95.1 | 88.8 | 88.7 | 85.5

GROUP KEY FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 117

| 2023 | 2022 | 2021 | 2020 | 2019
SHARE PRICE AND TRADING |  |  |  |  |
Share price, high, EUR | 18.22 | 14.94 | 14.66 | 14.24 | 14.99
Share price, low, EUR | 13.51 | 10.36 | 12.64 | 8.02 | 9.77
Share price, average, EUR | 15.36 | 12.57 | 13.67 | 11.55 | 12.56
Share price on Dec 31, EUR | 16.79 | 14.33 | 13.33 | 12.94 | 13.26
Number of shares traded (1,000) 4) | 43,852 | 37,017 | 57,478 | 75,885 | 53,048
% on number of shares | 29 | 24 | 38 | 50 | 35
Market capitalization on Dec 31, EUR million ²⁾ | 2,579 | 2,198 | 2,041 | 1,979 | 2,024
NUMBER OF SHARES AND SHARE CAPITAL |  |  |  |  |
Average number of shares, basic (1,000) ²⁾ | 153,573 | 153,320 | 153,092 | 152,879 | 152,630
Average number of shares, diluted (1,000) ²⁾ | 155,051 | 154,261 | 153,785 | 153,373 | 153,071
Number of shares on Dec 31, basic (1,000) ²⁾ | 153,620 | 153,352 | 153,127 | 152,924 | 152,649
Number of shares on Dec 31, diluted (1,000) ²⁾ | 155,303 | 154,894 | 154,068 | 153,744 | 153,385
Increase (+) / decrease (-) in number of shares outstanding (1,000) | 267 | 225 | 203 | 275 | 139
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 2023 is the Board of Directors' proposal to the Annual General Meeting.
4) Shares traded o n Nasdaq Helsinki only.

GROUP KEY FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 118
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.
Total assets - prepayments received |
GEARING (%) | = | 100 x | Interest-bearing net liabilities |  | Gearing (%) measures the ratio of interest-bearing net liabilities to equity.
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.
Total assets - non-interest-bearing liabilities ²⁾ |

DEFINITION OF KEY FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 119

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.
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.
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.
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.
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.
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.

DEFINITION OF KEY FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 120

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)
Average number of shares |  | 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
Average number of shares |  | Earnings per share (EPS), basic
DIVIDEND PER SHARE | = |  | Dividend paid |  | PRICE PER EQUITY PER SHARE | = |  | Share price on Dec 31
Number of shares on Dec 31 |  | 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
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
Share price on Dec 31 |  | Average number of shares
EQUITY PER SHARE | = |  | Equity attributable to equity owners of the parent company on Dec 31 |  |  |  |  |
Number of shares on Dec 31 |  |

DEFINITION OF KEY FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 121
Reconciliation to IFRS figures

|  |  |  |  | 2023 |  |  |  |  | 2022
EUR million | 1-3 | 4-6 | 7-9 | 10-12 | Total | 1-3 | 4-6 | 7-9 | 10-12 | Total
ITEMS AFFECTING COMPARABILITY IN EBITDA AND EBIT |  |  |  |  |  |  |  |  |  |
Operative EBITDA |  |  |  |  |  |  |  |  |  |
Pulp & Paper | 109.4 | 65.2 | 68.9 | 87.5 | 330.9 | 71.3 | 73.6 | 92.3 | 110.9 | 348.0
Industry & Water | 83.3 | 85.8 | 91.5 | 75.2 | 335.8 | 48.8 | 48.5 | 60.3 | 66.1 | 223.7
Total | 192.6 | 151.0 | 160.3 | 162.7 | 666.7 | 120.0 | 122.1 | 152.5 | 177.0 | 571.6
Total items affecting comparability | -8.5 | -3.7 | -3.1 | -111.4 | -126.7 | -6.5 | 1.2 | -15.3 | 7.8 | -12.8
EBITDA | 184.1 | 147.4 | 157.2 | 51.3 | 540.0 | 113.5 | 123.2 | 137.3 | 184.8 | 558.8
Operative EBIT |  |  |  |  |  |  |  |  |  |
Pulp & Paper | 80.4 | 37.6 | 39.8 | 58.6 | 216.3 | 40.7 | 42.8 | 61.8 | 80.3 | 225.7
Industry & Water | 61.5 | 63.3 | 67.8 | 54.1 | 246.7 | 28.2 | 26.9 | 37.7 | 43.1 | 135.9
Total | 141.9 | 100.9 | 107.6 | 112.6 | 463.0 | 68.9 | 69.7 | 99.5 | 123.4 | 361.6
Total items affecting comparability | -8.5 | -3.7 | -3.1 | -111.4 | -126.7 | -6.7 | -0.7 | -15.0 | 8.4 | -14.0
EBIT | 133.4 | 97.2 | 104.5 | 1.3 | 336.4 | 62.2 | 69.1 | 84.5 | 131.8 | 347.6
Operative EBITDA | 192.6 | 151.0 | 160.3 | 162.7 | 666.7 | 120.0 | 122.1 | 152.5 | 177.0 | 571.6
Restructuring and streamlining programs | 0.0 | -1.0 | 0.0 | 0.1 | -0.9 | -3.1 | 0.1 | 0.1 | -1.6 | -4.5
Transaction and integration expenses in acquisition | -0.1 | 0.0 | 0.0 | -0.1 | -0.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0
Divestment of businesses and other disposals | -8.9 | -2.6 | -3.1 | -111.3 | -125.9 | 0.0 | 2.0 | -15.6 | 8.9 | -4.6
Other items | 0.4 | 0.0 | 0.0 | 0.0 | 0.4 | -3.5 | -0.9 | 0.3 | 0.5 | -3.6
Total items affecting comparability | -8.5 | -3.7 | -3.1 | -111.4 | -126.7 | -6.5 | 1.2 | -15.3 | 7.8 | -12.8
EBITDA | 184.1 | 147.4 | 157.2 | 51.3 | 540.0 | 113.5 | 123.2 | 137.3 | 184.8 | 558.8
Operative EBIT | 141.9 | 100.9 | 107.6 | 112.6 | 463.0 | 68.9 | 69.7 | 99.5 | 123.4 | 361.6
Total items affecting comparability in EBITDA | -8.5 | -3.7 | -3.1 | -111.4 | -126.7 | -6.5 | 1.2 | -15.3 | 7.8 | -12.8
Items affecting comparability in depreciation, amortization and impairments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -0.1 | -1.9 | 0.3 | 0.6 | -1.2
Operating profit (EBIT) | 133.4 | 97.2 | 104.5 | 1.3 | 336.4 | 62.2 | 69.1 | 84.5 | 131.8 | 347.6

RECONCILIATION OF IFRS FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 122

|  |  |  |  | 2023 |  |  |  |  | 2022
EUR million | 1-3 | 4-6 | 7-9 | 10-12 | Total | 1-3 | 4-6 | 7-9 | 10-12 | Total
ROCE AND OPERATIVE ROCE |  |  |  |  |  |  |  |  |  |
Operative EBIT | 141.9 | 100.9 | 107.6 | 112.6 | 463.0 | 68.9 | 69.7 | 99.5 | 123.4 | 361.6
Operating profit (EBIT) | 133.4 | 97.2 | 104.5 | 1.3 | 336.4 | 62.2 | 69.1 | 84.5 | 131.8 | 347.6
Capital employed ¹⁾ | 2,244.5 | 2,221.5 | 2,188.9 | 2,155.5 | 2,155.5 | 2,045.4 | 2,113.6 | 2,194.9 | 2,238.0 | 2,238.0
Operative ROCE, % | 19.4 | 21.0 | 21.6 | 21.5 | 21.5 | 11.7 | 11.8 | 13.0 | 16.2 | 16.2
ROCE, % | 18.7 | 20.1 | 21.3 | 15.6 | 15.6 | 8.7 | 9.7 | 10.6 | 15.5 | 15.5
NET WORKING CAPITAL |  |  |  |  |  |  |  |  |  |
Inventories | 421.5 | 383.9 | 347.5 | 281.8 | 281.8 | 408.0 | 490.6 | 474.1 | 433.7 | 433.7
Trade receivables and other receivables | 517.6 | 494.4 | 496.8 | 468.2 | 468.2 | 530.5 | 620.4 | 701.4 | 603.7 | 603.7
Excluding financing items in other receivables | -23.7 | -21.9 | -10.0 | -18.6 | -18.6 | -30.4 | -78.6 | -105.9 | -71.1 | -71.1
Trade payables and other liabilities | 633.2 | 552.6 | 569.4 | 489.4 | 489.4 | 624.5 | 647.5 | 684.8 | 635.2 | 635.2
Excluding financing items in other liabilities | -127.7 | -78.2 | -83.1 | -37.0 | -37.0 | -123.1 | -82.7 | -82.1 | -31.4 | -31.4
Net working capital | 409.9 | 382.0 | 347.9 | 278.9 | 278.9 | 406.7 | 467.6 | 466.9 | 362.4 | 362.4
INTEREST-BEARING NET LIABILITIES |  |  |  |  |  |  |  |  |  |
Non-current interest-bearing liabilities | 832.6 | 639.6 | 641.8 | 615.7 | 615.7 | 795.5 | 811.2 | 814.3 | 838.1 | 838.1
Current interest-bearing liabilities | 148.8 | 325.5 | 327.8 | 322.1 | 322.1 | 258.8 | 295.1 | 266.1 | 183.7 | 183.7
Interest-bearing liabilities | 981.4 | 965.1 | 969.6 | 937.8 | 937.8 | 1,054.4 | 1,106.3 | 1,080.4 | 1,021.8 | 1,021.8
Cash and cash equivalents | 273.2 | 299.5 | 403.1 | 402.5 | 402.5 | 154.5 | 147.3 | 173.9 | 250.6 | 250.6
Interest-bearing net liabilities | 708.2 | 665.5 | 566.5 | 535.2 | 535.2 | 899.8 | 959.0 | 906.4 | 771.2 | 771.2

1) 12-month rolling average.

RECONCILIATION OF IFRS FIGURES

KEMIRA 2023 | FINANCIAL STATEMENTS | 123
Quarterly Earnings Performance

| 2023 | 2022
EUR million | 1-3 | 4-6 | 7-9 | 10-12 | Total | 1-3 | 4-6 | 7-9 | 10-12 | Total
Revenue |  |  |  |  |  |  |  |  |  |
Pulp & Paper | 504.6 | 421.2 | 403.6 | 418.8 | 1,748.2 | 446.5 | 487.6 | 537.3 | 556.2 | 2,027.7
Industry & Water | 401.5 | 418.9 | 425.1 | 390.0 | 1,635.5 | 321.5 | 373.8 | 434.6 | 412.0 | 1,541.9
Total | 906.0 | 840.1 | 828.7 | 808.8 | 3,383.7 | 768.1 | 861.4 | 971.9 | 968.2 | 3,569.6
EBITDA ¹⁾ |  |  |  |  |  |  |  |  |  |
Pulp & Paper | 100.9 | 63.9 | 68.7 | 74.5 | 308.0 | 66.4 | 74.9 | 77.2 | 118.1 | 336.6
Industry & Water | 83.3 | 83.5 | 88.5 | -23.2 | 232.0 | 47.1 | 48.4 | 60.1 | 66.7 | 222.2
Total | 184.1 | 147.4 | 157.2 | 51.3 | 540.0 | 113.5 | 123.2 | 137.3 | 184.8 | 558.8
EBIT ¹⁾ |  |  |  |  |  |  |  |  |  |
Pulp & Paper | 71.9 | 36.3 | 39.7 | 45.5 | 193.4 | 35.7 | 42.3 | 47.0 | 88.1 | 213.1
Industry & Water | 61.5 | 61.0 | 64.8 | -44.3 | 143.0 | 26.5 | 26.8 | 37.5 | 43.7 | 134.5
Total | 133.4 | 97.2 | 104.5 | 1.3 | 336.4 | 62.2 | 69.1 | 84.5 | 131.8 | 347.6
Finance costs, net | -10.7 | -12.1 | -9.9 | -11.6 | -44.4 | -7.9 | -8.9 | -7.4 | -15.3 | -39.4
Profit before tax | 122.7 | 85.1 | 94.6 | -10.3 | 292.0 | 54.4 | 60.2 | 77.1 | 116.5 | 308.2
Income taxes | -27.2 | -17.4 | -19.3 | -16.7 | -80.7 | -12.1 | -13.3 | -16.9 | -26.3 | -68.5
Net profit for the period | 95.4 | 67.7 | 75.2 | -27.1 | 211.3 | 42.2 | 46.9 | 60.3 | 90.3 | 239.7
Net profit attributable to |  |  |  |  |  |  |  |  |  |
Equity owners of the parent | 92.9 | 64.7 | 71.7 | -30.2 | 199.1 | 40.6 | 45.0 | 57.9 | 88.2 | 231.7
Non-controlling interests | 2.5 | 3.0 | 3.5 | 3.1 | 12.2 | 1.7 | 2.0 | 2.4 | 2.1 | 8.0
Net profit for the period | 95.4 | 67.7 | 75.2 | -27.1 | 211.3 | 42.2 | 46.9 | 60.3 | 90.3 | 239.7
Earning per share, basic, EUR | 0.61 | 0.42 | 0.47 | -0.20 | 1.30 | 0.26 | 0.29 | 0.38 | 0.58 | 1.51
Earning per share, diluted, EUR | 0.60 | 0.42 | 0.46 | -0.20 | 1.28 | 0.26 | 0.29 | 0.38 | 0.57 | 1.50

1) Includes items affecting comparability.

QUARTERLY EARNINGS PERFORMANCE

KEMIRA 2023 | FINANCIAL STATEMENTS | 124
Shares and shareholders
Shares and share capital
On December 31, 2023, 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 2023, Kemira Oyj had 49,659 registered shareholders (48,403 on
December 31, 2022). Non-Finnish shareholders held 34.7% of the shares (31.5% on December
31, 2022), including nominee-registered holdings. Households owned 19.0% of the shares
(19.3% on December 31, 2022). Kemira held 1,722,725 treasury shares (1,990,197 on December
31, 2022), representing 1.1% (1.3% on December 31, 2022) 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 17% during the reporting period and closed at EUR 16.79
on the Nasdaq Helsinki at the end of December 2023 (14.33 on December 31, 2022). The shares
registered a high of EUR 18.22 and a low of EUR 13.51 in January-December 2023, and the
average share price was EUR 15.36. The company’s market capitalization, excluding treasury
shares, was EUR 2,579 million at the end of December 2023 (2,198 on December 31, 2022).
In January-December 2023, Kemira Oyj’s share trading turnover on the Nasdaq Helsinki was
EUR 688 million (EUR 462 million in January-December 2022). The average daily trading
volume was 174,707 shares (146,311 in January-December 2022). The total volume of Kemira
Oyj’s share trading in January-December 2023 was 57 million shares (49 million shares in
January-December 2022), 23% (25% in January-December 2022) 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, 2023, Kemira Oyj’s distributable funds totaled EUR 713,680,177 of which net
profit for the period was EUR 104,191,302. 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, 2024 that a dividend of EUR 0.68 per share, totaling EUR 104 million, be paid on the basis
of the adopted balance sheet for the financial year that ended on December 31, 2023. The
dividend will be paid in two installments. The first installment, EUR 0.34 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 22, 2024. The Board
of Directors proposes that the first installment of the dividend be paid out on Apr il 4, 2024.The
second installment, of EUR 0.34 per share, will be paid in November 2024. The second
installment 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. The
Board of Directors will decide the record date and the payment date for the second
installment at its meeting in October 2024. The record date is planned for October 29, 2024,
and the dividend payment date for November 5, 2024 at the earliest. Kemira’s dividend policy
is to pay a competitive dividend that increases over time.

SHARES AND SHAREHOLDERS

KEMIRA 2023 | FINANCIAL STATEMENTS | 125
Board authorizations
The Annual General Meeting on March 22, 2023 authorized the Board of Directors to decide
upon the repurchase of a maximum of 6,000,000 of the company’s own shares. This
corresponds to approximately 3.9% of all shares and votes in the company. The shares will 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 in proportion to the
existing shareholdings of the company’s shareholders in public trading on the Nasdaq Helsinki
Ltd. (the “Helsinki Stock Exchange”) at the market price quoted at the time of repurchase. The
price paid for the shares repurchased through a tender offer under the authorization shall be
based on the market price of the company’s shares in public trading. The minimum price to be
paid would be the lowest market price of the share quoted in public trading during the
authorization period and the maximum price would be the highest market price quoted during
the authorization period. Shares shall be acquired and paid for in accordance with the rules of
the Helsinki Stock Exchange and those of Euroclear Finland Ltd. Shares may be repurchased
to be used in implementing or financing mergers and acquisitions, developing the company’s
capital structure, improving the liquidity of the company’s shares, or to be used for the
payment of the annual fee payable to the members of the Board of Directors or implementing
the company’s share-based incentive plans. In order to realize the aforementioned purposes,
the shares acquired may be retained, transferred further or cancelled by the company. The
Board of Directors will decide on other terms related to the 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, 2023.
The Annual General Meeting authorized the Board of Directors to decide to issue a maximum
of 15,600,000 new shares (corresponding to approximately 10% of all company shares and
votes) and/or transfer a maximum of 7,800,000 of the company’s own shares (corresponding
to approximately 5% of all company shares and votes) held by the company (“Share issue”).
The new shares may be issued and the company’s own shares held by the company may be
transferred either for consideration or without consideration. The new shares may be issued
and the company's own shares held by the company may be transferred to the company’s
shareholders in proportion to their current shareholdings in the company, or by disapplying
the shareholders’ pre-emption right, through a directed share issue, if the company has a
weighty financial reason to do so, such as financing or implementing mergers and
acquisitions, developing the capital structure of the company, improving the liquidity of the
company’s shares or, if it is justified, for the payment of the annual fee payable to the
members of the Board of Directors or implementing the company’s share-based incentive
plans. The directed share issue may be carried out without consideration only in connection
with the implementation of the company’s share-based incentive plans. The subscription
price of new shares shall be recorded to the invested unrestricted equity reserves. The
consideration payable for the company's own shares shall be recorded to the invested
unrestricted equity reserves. The Board of Directors shall decide upon other terms related to
the share issues. The share issue authorization is valid until May 31, 2024. The share issue
authorization has been used and shares owned by the Group were conveyed to members of
the Board and key employees in connection with remuneration.
Management shareholding
The members of the Board of Directors as well as the Interim President and CEO and his
Deputy held 214,529 (330,988) Kemira Oyj shares on December 31, 2023 or 0.14% (0.21%) of all
outstanding shares and voting rights (including treasury shares and shares held by the related
parties and controlled corporations). Petri Castrén, Interim President and CEO, held 56,140
shares on December 31, 2023. Members of the Management Board, excluding the Interim
President and CEO and his Deputy, held a total of 245,128 shares on December 31, 2023
(237,515), representing 0.16% (0.15%) 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.

SHARES AND SHAREHOLDERS

KEMIRA 2023 | FINANCIAL STATEMENTS | 126
LARGEST SHAREHOLDERS DEC 31, 2023

| Shareholder | Number of shares | % of shares and votes
1 | Oras Invest Ltd | 33,553,000 | 21.6
2 | Solidium Oy | 7,782,765 | 5.0
3 | Varma Mutual Pension Insurance Company | 5,332,678 | 3.4
4 | Nordea Funds | 3,896,196 | 2.5
5 | Ilmarinen Mutual Pension Insurance Company | 3,700,000 | 2.4
6 | Elo Mutual Pension Insurance Company | 2,277,000 | 1.5
7 | Etola Group Oy | 1,000,000 | 0.6
8 | Veritas Pension Insurance Company Ltd. | 861,372 | 0.6
9 | Laakkonen Mikko Kalervo | 770,000 | 0.5
10 | Nordea Life Assurance Finland Ltd. | 738,047 | 0.5
11 | The State Pension Funds | 560,000 | 0.4
12 | Paasikivi Pekka Johannes | 462,200 | 0.3
13 | Säästöpankki Funds | 392,194 | 0.3
14 | Valio Pension Fund | 379,450 | 0.2
15 | OP-Henkivakuutus Ltd. | 340,902 | 0.2
| Kemira Oyj | 1,722,725 | 1.1
| Nominee registered and foreign shareholders | 53,835,387 | 34.7
| Others, Total | 37,738,641 | 24.2
| Total | 155,342,557 | 100.0

SHAREHOLDINGS BY NUMBER OF SHARES HELD ON DEC 31, 2023

Number of shares | Number of shareholders | % of shareholders | Shares total | % of shares and votes
1 - 100 | 19,087 | 38.4 | 919,462 | 0.6
101 - 500 | 18,297 | 36.8 | 4,839,778 | 3.1
501 - 1,000 | 5,882 | 11.8 | 4,503,491 | 2.9
1,001 - 5,000 | 5,381 | 10.8 | 11,238,360 | 7.2
5,001 - 10,000 | 574 | 1.2 | 4,126,138 | 2.7
10,001 - 50,000 | 351 | 0.7 | 6,560,370 | 4.2
50,001 - 100,000 | 38 | 0.1 | 2,666,853 | 1.7
100,001 - 500,000 | 33 | 0.1 | 6,160,766 | 4.0
500,001 - 1,000,000 | 7 | 0.0 | 5,296,157 | 3.4
1,000,001 - | 9 | 0.0 | 109,031,182 | 70.2
Total | 49,659 | 100.0 | 155,342,557 | 100.0

SHARES AND SHAREHOLDERS

KEMIRA 2023 | FINANCIAL STATEMENTS | 127
Information for investors
Financial reports in 2024
Kemira will publish three financial reports in 2024.
April 26, 2024: Interim report for January–March
July 17, 2024: Half-year financial report for January–June
October 25, 2024: Interim report for January–September
The financial reports and related presentation material are available on Kemira’s website at
kemira.com/investors. Furthermore, Kemira's stock exchange and press releases, Annual
Reports (incl. Corporate Responsibility Report and Financial Statements) and other investor
information are also available on the website. On the site, visitors can register to receive
releases by e-mail and order the company’s Financial Statements.
Investor communications
The purpose of Kemira's investor communications is to provide capital markets with open and
reliable information on the company and its operating environment in order to give market
participants a factual overview of Kemira as an investment.
Kemira's investor communications aims to ensure that everyone operating in the markets has
equal access to sufficient and correct information concerning the company, and to ensure
that information is disclosed consistently and without delay.
Kemira Oyj is domiciled in Helsinki, Finland, and the company's shares are listed on Nasdaq
Helsinki. Kemira Oyj complies with the laws of Finland and the regulations of Nasdaq Helsinki
and Finland's Financial Supervisory Authority.
Silent period
Kemira observes a silent period before issuing financial statements or interim reports. During
the period, Kemira’s representatives do not comment on Kemira’s financial statements or
interim reports for the ongoing reporting period the specific silent period relates to. The
schedule for the silent period and publication of financial information and closed periods is
displayed on Kemira’s website under Investors > Investor Calendar. Kemira’s Investor
Relations function is responsible for keeping the calendar up-to-date.
Annual General Meeting
Kemira's Annual General Meeting will be held on Wednesday, March 20, 2024 at 1.00 p.m. EET
at Pikku-Finlandia, Karamzininranta 4, Helsinki, Finland. Shareholders who on the record date
of the Annual General Meeting, March 8, 2024, are registered in the company’s shareholders’
register maintained by Euroclear Finland Ltd, are entitled to attend in the Annual General
Meeting and exercise their rights as shareholders by voting in advance. Registered
shareholders who are not attending the meeting in person, have the possibility to follow the
Annual General Meeting via a live webcast, which is not deemed as official participation.
Registration for the Annual General Meeting will begin on February 20, 2024 and invitation and
registration instructions have been published on February 9, 2024 as a stock exchange
release and at Kemira’s web site at kemira.com/agm202 4.
Kemira will release a stock exchange release on the Annual General Meeting’s decisions
immediately after the meeting.
Dividend distribution
For dividend proposal, please see page 109.
Change of address
Kemira’s shareholders are kindly requested to report any change of address to the bank or
brokerage firm in which they have their book-entry account. This will also update information
in registers, maintained by Euroclear Finland Ltd, which Kemira uses to send mail to its
shareholders.

INFORMATION FOR INVESTORS

KEMIRA 2023 | FINANCIAL STATEMENTS | 128
Investor relations
Mikko Pohjala, Vice President, Investor Relations
+358 40 838 0709
mikko.pohjala@kemira.com
Basic share information
Listed on: Nasdaq Helsinki Ltd
Trading code: KEMIRA
ISIN code: FI0009004824
Industry group: Materials
Industry: Chemicals
Number of shares on December 31, 2022: 155,342,557
Listing date: November 10, 1994

INFORMATION FOR INVESTORS

KEMIRA 2023 | FINANCIAL STATEMENTS | 129