Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Q2 2001 Earnings Presentation
24 slides from Kemira Oyj's earnings presentation, July 2001
Slide 1: Highlights 1-2Q 2001
Highlights 1-2Q 2001 Sales € 1 287 million, underlying growth 11% Operating income € 111 million, up by 8% EPS € 0.52 up by 14% (excl. non-recurring items) Equity / share € 9.53 The second share buy-back started All figures for the year 2000 in this presentation have been restated to ref
Slide 2: Kemira Group
Kemira Group Kemira Oyj Key figures 2000 Net sales € 2 486 million Chemicals Paints & Income after financial items Agro Coatings € 144 million Personnel Finland 4 908 Other countries 4 736 7/23/2008 www.kemira.com 2
Slide 3: Kemira Group 1-2Q 2001
Kemira Group 1-2Q 2001 Other 60 Paints & 2% 55 Coatings 50 18 % 45 Chemicals 40 34 % € million 35 1-2Q 01 30 25 1-2Q 00 20 15 Agro Nitrogen 10 19 % 5 0 Agro Chemicals Coatings Paints & Agro Specialties 27 % Net sales 1-2Q 2001: € 1 287 m Operating income 1-2Q 2001: € 111 m 7/23/2008 www.kemira.com 3
Slide 4: Strong growth
Strong growth Capital expenditure € 188 m Other 3% Agro Chemicals Acquisitions 11 % 23 % - Alcro-Beckers - Eastman’s resin plant Organic growth - TiO2 production capacity increase in Pori - formic acid production in Oulu - revamping the Kokkola fine chemicals plant - increase of calcium sulpha
Slide 5: Chemicals
Chemicals Net sales Operating income 900 Net sales % 120 16 14 100 600 12 € million 80 10 € million 60 8 300 40 6 4 20 2 0 0 0 96 97 98 99 00 01 96 97 98 99 00 01 Q1 Q2 Q3 Q4 7/23/2008 www.kemira.com 5
Slide 6: Chemicals
Chemicals Industrial Pulp and Pulp and Chemicals Industrial Paper Paper 43% Chemicals 39% 38 % 44 % Kemwater Kemwater 18 % 18% Net sales 2000: € 888 m Net sales 1-2Q 2001: € 460 m 7/23/2008 www.kemira.com 6
Slide 7: Pulp & Paper Chemicals
Pulp & Paper Chemicals Sales + 13 % over 2000 y-o-y Bleaching Pulp & paper industry continued Sulphur chemicals chemicals production cutbacks Finnish paper production -2% and pulp production - 4% in Q1-2 y-o-y Increased raw material prices squeezed margins, esp. in bleaching chemicals Specia
Slide 8: Kemwater
Kemwater Sales growth 7% over 2000 y-o-y Vision of Strong improvement in Central and Southern Europe emistry Further emphasis on R & D - water competence center in Oulu - recycling competence center in Helsingborg - synergies with other businesses 7/23/2008 www.kemira.com 8
Slide 9: Industrial Chemicals
Industrial Chemicals Sales close to the same level as 2000 Fine Chemicals TiO2 volumes -1% and prices +8 % Chemidet Formic acid and calcium chloride CC-products sales and profitability improved Pigments Sodium percarbonate market still improving; capacity expansion ready by autumn Formics
Slide 10: Paints and Coatings
Paints and Coatings Net sales Operating income % 400 50 20 40 16 300 30 12 € million € million 200 20 8 100 10 4 0 0 0 -10 -4 96 97 98 99 00 01 96 97 98 99 00 01 Q1 Q2 Q3 Q4 7/23/2008 www.kemira.com 10
Slide 11: Paints and Coatings
Paints and Coatings Paints Coatings 48% 29% Coatings Deco 52% 71% Net sales 2000: € 243 m Net sales 1-2Q 2001: € 238 m 7/23/2008 www.kemira.com 11
Slide 12: Paints and Coatings
Paints and Coatings Deco Integration of Tikkurila Paints and Alcro-Beckers continues at a good pace Sales more than doubled Sales growth strong in main markets, good weather for a change Margins reduced due to goodwill depreciations, synergies will more than compensate Coatings Sales 8% ov
Slide 13: Agro
Agro Net sales Operating income % 150 15 1 200 1 000 100 10 € million € million 800 50 5 600 400 0 0 200 0 -50 -5 96 97 98 99 00 01 96 97 98 99 00 01 Q1 Q2 Q3 Q4 7/23/2008 www.kemira.com 13
Slide 14: Agro
Agro Agro Food Chain Specialties Partner 45 % 31 % Agro Nitrogen 38 % Agro Nitrogen 55 % Specialty Crop Care Intermediates 12 % 12 % Animal nutrition 7% Net sales 2000: € 1 219 m Net sales 1-2Q 2001: € 617 m 7/23/2008 www.kemira.com 14
Slide 15: Agro Specialties
Agro Specialties Reported sales growth strong y-o-y boosted by the increase in ownership of UAB Kemira Lifosa and strong performance of feed phosphates NPK prices up by 5-15%, volumes down by 5% High gas prices putting strain on margins Danish restructuring continues; € 6.3 m annual savings
Slide 16: Agro Nitrogen
Agro Nitrogen Sales clearly below 2000 y-o-y; prices continued firm, volumes down by over one third Foot and mouth disease and record wet spring affecting sales Market prices of N continue firm and compensate high gas prices Nitric acid plant in Rozenburg (The Netherlands) will be relocated
Slide 17: Kemira Group
Kemira Group Net sales Operating income % 2800 250 12 2400 200 10 2000 € million 8 1600 150 € million 6 1200 100 800 4 400 50 2 0 0 0 96 97 98 99 00 01 96 97 98 99 00 01 Q1 Q2 Q3 Q4 7/23/2008 www.kemira.com 17
Slide 18: Gearing
Net debt 1 050 100 900 80 750 60 € million Gearing 600 450 40 300 20 150 0 0 96 97 98 99 00 2Q01 7/23/2008 www.kemira.com 18
Slide 19: Average interest rate
Net financing expenses 80 8 70 7 Average interest rate 60 6 50 5 € million 40 4 30 3 20 2 10 1 0 0 96 97 98 99 00 01 Q1 Q2 Q3 Q4 Average interest rate 7/23/2008 www.kemira.com 19
Slide 20: Cash flow
Cash flow 550 450 350 € million 250 150 50 -50 -150 96 97 98 99 00 1-2Q01 Cash flow from operations Cash flow after investments and disposals 7/23/2008 www.kemira.com 20
Slide 21: Financial targets
Financial targets Profitable growth, capital efficiency and healthy balance sheet Rolling Target 2000 12 mths > 2001 Growth rate (%)1) 11 12 >10 EBIT margin (%)1) 8 7 >10 EPS growth (%) 217 78 >10 CFROI (%) 11 7 >10 Gearing 2) (%) 37 58 40-100 1) Continuing operations 2) Net debt/(equity +
Slide 22: Valuation / ownership
Valuation / ownership Market capitalisation / equity Ownership 29 June 2001 1500 Finnish 1200 instit. 22.9 % Public 900 6.9 % € million Int. instit. 600 14.0 % 300 Finnish 0 State 95 96 97 98 99 00 01 56.2 % Equity / share € 9.53 State’s minimum to 15% -95 option programme until Jan 2002 Shar
Slide 23: Outlook for the year (1)
Outlook for the year (1) Chemicals – The operating rates in pulp and paper industry are expected to remain below last year´s level – Kemwater is expected to continue strong – Industrial Chemicals’ outlook good for formic acid, calcium chloride and detergent chemicals – Market outlook for titanium
Slide 24: Outlook for the year (2)
Outlook for the year (2) Agro – Uncertainty because of high inventory levels – Production cutbacks will continue – Pricing into new season starts firm – Due to low nutrient content of soil demand is expected to improve during the new season – Increased demand for feed phosphates affects positively