Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Investor Day (September 2022)
12 slides from Kemira Oyj's investor day presentation, Sep 13, 2022
Slide 1: Recession-resistant business model
PETRI CASTRÉN CFO Recession-resistant business model CAPITAL MARKETS DAY SEPTEMBER 13, 2022
Slide 2: Unprecedented cost pressure during the past two years – signs of moderation visible
Unprecedented cost pressure during the past two years – signs of moderation visible HIGHER OIL AND NATURAL GAS ETHYLENE AND PROPYLENE INCREASED LOGISTICS COSTS PRICES ARE IMPORTANT DERIVATIVES 300 1,700 450 1,600 400 1,500 250 1,400 350 1,300 200 300 1,200 1,100 250 Forwards 150 for 2023 1,000 900 2
Slide 3: We have shown agility in an exceptional operating environment
We have shown agility in an exceptional operating environment SALES PRICE VS VARIABLE COST TREND RESILIENT BUSINESS MODEL (ROLLING 12-MONTH CHANGE Y-O-Y) EUR million 480 Contract structure 420 • Pulp & Paper: contract pricing checkpoints shortened; share 360 of formula-or spot-based based contracts
Slide 4: Our reliance on natural gas is low; electricity independence a competitive advantage
Our reliance on natural gas is low; electricity independence a competitive advantage KEMIRA’S MANUFACTURING SITES ARE NOT RELIANT ON ANNUAL ELECTRICITY PURCHASES AROUND NATURAL GAS EUR 140 MILLION IN 2021 Electricity & energy use by country (by Gwh) 31% 38% 20 MEUR 7 / 31 Gas purchases in FINLAND ma
Slide 5: Our products are consumable chemicals with resilient demand through economic cycles
Our products are consumable chemicals with resilient demand through economic cycles OPERATIVE EBITDA DEVELOPMENT HAS BEEN STEADY THROUGH ECONOMIC CYCLES EUR million % 450 17.9% 426 18 15.9% 16 400 15.4% 14 350 12.8% 12.5% 12.5% 12.3% 12.1% 12 11.8% 11.8% 11.1% 11.3% 300 10.5% 10 Our products are 8 m
Slide 6: We remain committed to our financial targets
WE REMAIN COMMITTED TO OUR FINANCIAL TARGETS FASTER THAN OPERATIVE EBITDA GEARING MARKET GROWTH 15-18% BELOW 75% NEXT STEPS NEXT STEPS NEXT STEPS Capture organic growth Maintain operative EBITDA Maintain gearing below 75% opportunities margin within range Capacity to temporarily Continue to progress
Slide 7: Maintaining the operative EBITDA margin within the 15-18% range
Maintaining the operative EBITDA margin within the 15-18% range FACTORS WITHIN OUR CONTROL CUSTOMER EFFICIENCY OF GROWTH PROFITABILITY OPERATIONS Particular focus on Continued focus on Focus on water treatment, Oil & Gas profitability asset utilization biobased chemicals and the APAC region Proactiv
Slide 8: We have a strong balance sheet and no imminent debt maturities
We have a strong balance sheet and no imminent debt maturities GROSS DEBT END OF JUNE 30, 2022 EUR 1,106 14% MILLION, MATURITY PROFILE EXCLUDING LEASES Leases 36% EUR 153 million Bond 450 400 EUR 400 million 400 350 25% 300 264 Other 250 EUR 281 million 200 200 167 25% 150 133 Loans from banks and 1
Slide 9: M&A and biobased investment to drive future capital allocation
M&A AND BIOBASED INVESTMENT TO DRIVE FUTURE CAPITAL ALLOCATION Better positioned for M&A, Biobased capex Dividend policy intact: particularly in water competitive and over-time Looking at capital- treatment and biobased increasing dividend efficient ways to grow opportunities with our partners Bioba
Slide 10: Factors to watch in 2023
Factors to watch in 2023 FACTORS EXPECTED TO IMPACT OPERATIVE EBITDA DEVELOPMENT IN 2023 SUPPORTING UNCERTAINTIES POSSIBLE NEGATIVE FACTORS • Competitive advantage from • Global economic uncertainty energy independence • Fixed cost pressure • FX and raw material price following high inflation and •
Slide 11: Why invest in Kemira
1. 2. FOCUS ON RESILIENT PROFITABLE BUSINESS MODEL SUSTAINABLE ENABLING AN GROWTH ATTRACTIVE DIVIDEND Organic growth Why H1 2022 23% Operative EBITDA margin H2 2022 14.8% Dividend policy: competitive and over- time increasing dividend Dividend for 2021 EUR invest in 0.58 per share Kemira 3. SUSTAINA
Slide 12: Chemistry with a purpose. Better every day.
4 e mn | cra Chemistry with a purpose. Better every day.