One molecule can change everything
104Pages

One molecule can change everything ANNUAL AND SUSTAINABILITY REPORT 2021

Contents PERSTORP IN BRIEF PRESIDENT´S COMMENT EVERYDAY CHEMISTRY TRENDS MARKET SEGMENTS CORPORATE GOVERNANCE REPORT EXECUTIVE LEADERSHIP TEAM FINANCIAL STATEMENTS PERSTORP ANNUAL AND SUSTAINABILITY REPORT 2021

We are here to lead change toward chemistry that advances everyday life for the better. With every molecule of our being. Perstorp believes in improving everyday life – making it safer, more convenient and more environmentally sound for billions of people all over the world. As one of the world’s leading sustainable solutions providers, focusing on the global Resins & Coatings, Engineered Fluids and Animal Nutrition markets, our innova ive t solutions provide essential properties for products used everywhere, every day. Our products can be found in everything – from your car and mobile...

employees worldwide World leader in selected specialty chemicals niches • he sustainable solutions provider for our prioritized market segments T Resins & Coatings, Engineered Fluids and Animal Nutrition • Integrated Polyols and Oxo platforms enable the efficient utilization of side streams • Focused Innovation for our core segments, closely linked to our customers • Strongly committed to Sustainability and our Finite Material Neutral ambition • Globally present with production plants in Europe, Asia and North America 2.513 Billion SEK EBITDA excl. nonrecurring items • ince December 2005,...

Highlights in 2021 Improved outlook on credit rating Both Moody’s and S&P Global Ratings have in 2021 improved their outlook on Perstorp’s credit rating. The rating actions are due to improvements in Perstorp’s leverage reflecting currently strong EBITDA performance and improvements in the company’s liquidity profile. Moody’s Investors Service (“Moody’s”) changed the outlook on Perstorp Holding AB rating to stable from the negative outlook given in March 2020. S&P Global Ratings announced the move of Perstorp from “negative” to “stable” outlook on strong results and deleveraging. In...

PRESIDENT´S COMMENT Outstanding year leads transition to an exciting new future This year was the best in Perstorp’s history as we navigated and became accustomed to the changing market that presents significant opportunities for our business going forward. Our sales in 2021 amounted to SEK 13,537 m, which is an increase of 47 percent compared with the previous year and EBITDA excluding non-recurring items amounted to SEK 2,513 m corresponding to an EBITDA margin of 18.6 percent. This is our highest EBITDA and EBITDA margin ever in Perstorp’s modern history. PROACTIVELY TAKING ADVANTAGE OF...

”We are creating a more sustainable business and offering, which I see as crucial to our overall long term stability and profitability.” its strong performance during 2021 and reached record levels in Q4 with +26% Y/Y. Our Pro-Environment solutions enable the sustainable transformation of various industries and end products. Pro-Environment products have enabled Perstorp’s customers to save substantial amounts of CO2 in 2021 compared with standard products in 2021. Our positioning is strong and I am convinced that much of Perstorp’s future lies in Pro-Environment products, and this is an...

Focused forward with a history of innovation Founded by Wilhelm Wendt in Perstorp, in southern Sweden 140 years ago, we are still leading the way in our industry. Our founder might never have imagined the success of the modern enterprise we know as Perstorp today, a global specialty chemicals’ company with products benefitting millions of people all over the world, every day. You could compare a successful company with a great white shark. In its prime, it expands its territory, but if it dares to sit still for too long, it dies. Perstorp has a long track record of successfully reinventing...

Perstorp introduces new products to preserve animal feed and to promote the healthy growth of farm animals. A new production plant for Perstorp’s Oxo production is inaugurated in Stenungsund. Owners, PAI Partners announce the transfer of their interest in Perstorp to a new fund managed by PAI Partners and backed by Landmark Partners and other co-investors. The divestment of the BioProduct business is finalized, and Perstorp increases its investment efforts in Animal Nutrition. This year, Perstorp, like most other businesses, has had to spend substantial time and effort to cope with the...

EVERYDAY CHEMISTRY The essential role of chemistry Although the modern science of chemistry did not emerge until the 16th century, humans have engaged in chemistry for much longer than recorded history. After all – human beings along with all other beings are chemistry. FUNDAMENTAL TO MODERN LIFE In modern times, chemistry has enabled us to live longer, healthier and richer lives than in previous centuries. We may not realize it, but our breakfast bread, the screen we work in front of and the fabrics in the sheets we sleep on at night would all be impossible to produce, were it not for...

... enable coating without solvents ... improve energy efficiency in refrigerators ... make cables softer and more durable ... support animal health and welfare ... and we are finding ways to do all these things in more sustainable ways. We focus our innovation on real societal needs. Many of our products are required for a more sustainable society, with demographic changes, urbanization and the need to combat climate change. PERSTORP ANNUAL AND SUSTAINABILITY REPORT 2021

Global macro trends shape our business Our business and the market segments we serve are shaped by a variety of global macro trends – some of them are more affected by the ongoing Covid-19 pandemic than others. Most of these macro trends create both challenges and opportunities for the chemical industry: Urbanization driving the development of city structures Changing food consumption patterns Regionalization, with a continued high level of geopolitical tension Accelerating sustainability regulations as well as customer expectations PERSTORP ANNUAL AND SUSTAINABILITY REPORT 2021 THE...