Q2 Results Review - K's Results Studio

Overview

• Presentation of Q2 results with Miko.
• Solid quarter after a strong Q1.

Market Performance

• Market continued to recover.
• Solid performance in the industry and water segment.
  • Considerable volume growth year-on-year.
  • Slight volume growth compared to Q1.
• Sales prices declined due to lower prices for energy-intensive pulp and bleaching chemicals.
• Organic growth slightly positive.
  • Industry and water segment growth compensated for the decline in pulp and paper.

Profitability

• Strong operative EBITDA margin at 19.2%.
  • Continued strong performance in the industry and water segment.
• Pulp and paper segment margin at 16.5% during a seasonally lower quarter.

Investments

• Two new projects in the industry and water segment announced in July.
  • Part of the profitable growth strategy.
• Activated Carbon Market:
  • Entered through the acquisition of a reactivation facility in the UK.
  • Focus on micropollutant removal in wastewater treatment.
  • Growing market with tightening legislation and regulation.
  • Strong market shares in wastewater treatment in Europe and North America.
• Coagulant Capacity Expansion:
  • Investment in a coagulant plant in Barcelona, Spain.
  • Addressing growing market needs in biogas applications and phosphorus removal.

Outlook for 2024

• Positive profit warning published in June.
• Outlook upgraded for revenue and operative EBITDA.
• Confidence in continued market recovery for the rest of the year.
• Expectation of stable variable costs for the remainder of the year.

Closing Remarks

• Invitation to contact IR with questions.
• Capital Markets Day in September.
• Seasonal greetings - have a lovely summer!