K's Traditional Results Studio: Q4 and Full Year Results

Overview of 2024 Financial Performance

• Strong Financial Performance:
  • Resilient business model despite challenging market environments.
  • Solid growth in water treatment.
  • Continued softness in the pulp and paper market.

Performance Highlights

• Volume Growth:
  • Good volume growth in both segments.
  • 3% organic growth in the industry and water segment.
• Profitability:
  • Adjusted operative EBITDA remained strong at 20%.
  • Strong balance sheet.
• Dividend Proposal:
  • Board proposes increasing the dividend to 74 cents per share.

Q4 Specifics

• Volume and Sales:
  • Continued volume growth.
  • Sequentially higher sales prices.
• Profitability Challenges:
  • Q4 operative EBITDA margin at 18.7%.
  • Negative impacts from maintenance shutdowns and timing of miscellaneous fixed costs.

Strategic Steps Forward

• New Operating Model:
  • Announced a new operating model with three business units.
• Business Unit Goals:
  • Water Solutions:
    • Maintain strong financial performance.
    • Continue expansion investments and M&A pipeline execution.
  • Packaging Hygiene:
    • Capture growth opportunities as markets recover.
    • Focus on potential margin improvement.
  • Fiber Essentials:
    • Maximize cash flow generation.
    • Explore South American pulp market expansion opportunities.
  • New Ventures and Services:
    • Aim to make final investment decision on renewable polymer manufacturing joint venture in Finland.

Outlook for 2025

• Operating Environment Expectations:
  • Slight growth in end markets.
  • Water treatment market growth expected in all regions.
  • Recovery in pulp, packaging, and hygiene markets expected during the year.
• Financial Projections:
  • Revenue expected to be between 2.8 and 3.2 billion EUR.
  • Operative EBITDA expected between 540 and 640 million EUR.

Conclusion

• Open for IR-related questions and invitations to upcoming events.