Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Q3 2008 Earnings Presentation
17 slides from Kemira Oyj's earnings presentation, Oct 29, 2008
Slide 1: Water is the Connection
Water is the Connection Harri Kerminen, President & CEO October 29, 2008 IR: Päivi Antola, tel +358 10 862 1140 1
Slide 2: Strategy: First Profitability, then Growth
Strategy: First Profitability, then Growth 1. Strengthen balance sheet 2. Improve cash flow and profitability 3. Deliver new growth IR: Päivi Antola, tel +358 10 862 1140 2
Slide 3: Operating Result Clearly Up from Q2
Operating Result Clearly Up from Q2 1. Strengthen balance sheet Equity ratio 40% (Q2: 37%) Gearing 87% (Q2: 99%) 2. Improve cash flow and profitability Operative EBIT 56.5 M€ vs. Q2: 37.2 M€ EBIT-% from 5.0% to 7.2% → Price increases and performance enhancement measures are starting to take
Slide 4: Key Figures for Q3
Key Figures for Q3 (M€) 7-9/08 7-9/07 1-9/2008 1-9/2007 2007 Revenue 780.0 729.5 2,205.1 2,155.8 2,810.2 Operative EBIT 56.5 65.8 120.9 170.5 174.6 Operative EBIT, % 7.2 9.0 5.5 7.9 6.2 EBIT 69.8 79.5 142.1 186.0 143.1 EBIT, % 8.9 10.9 6.4 8.6 5.1 EPS (EUR) 0.28 0.43 0.55 0.91 0.53 ROCE, % 4.9 10.3
Slide 5: Group Revenue Q3/2008 vs. Q3/2007
Group Revenue Q3/2008 vs. Q3/2007 MEUR 38 -19 6 -33 13 780 46 729 2007 Price Volume Currency Acquisitions Divestments Other 2008 IR: Päivi Antola, tel +358 10 862 1140 5
Slide 6: Group Operating profit Q3/2008 vs. Q3/2007
Group Operating profit Q3/2008 vs. Q3/2007 MEUR 10 -3 -61 46 79.5 1 -3 0 69.8 07 08 cy s s e t s e en st m st ic m en 20 20 co Pr co ite m lu rr st Vo d g e Cu ve xe rin bl ri a Di Fi ur Va ec n -r No IR: Päivi Antola, tel +358 10 862 1140 6
Slide 7: Balance Sheet Strengthened
Balance Sheet Strengthened 30 Sep 08 30 Jun 08 31 Dec 07 Net debt (M€) 990.5 1,113.5 1,003.4 Equity (M€) 1,142.0 1,120.5 1,087.3 Equity ratio, % 40 37 39 Gearing, % 87 99 92 Capital employed (M€)* 2,043.2 2,041.3 2,035.8 Personnel 9,392 10,673 10,048** *12-month rolling average **30 Sep 2007 IR: Päi
Slide 8: Cash Flows
Cash Flows M€ 1-9/2008 1-9/2007 Funds from operations 141.7 212.8 Change in net working capital -64.6 -98.9 Cash flows from operations 77.1 113.9 CapEx excl. acquisitions -116.3 -178.7 Acquisitions -140.4 -47.2 Sale of assets 245.3 -11.4* Cash flows from investing activities -11.4 -237.3 Free cash f
Slide 9: Business Areas – Q3 Highlights
Business Areas – Q3 Highlights IR: Päivi Antola, tel +358 10 862 1140 9
Slide 10: Pulp&Paper in Q3
Kemira Pulp&Paper in Q3 Organic revenue growth in local currencies 13% High demand in pulp chemicals Competitive environment in paper chemicals challenging Operative EBIT 15.3 M€ (22.6) Sales price increase 9 M€ Volume increase in pulp chemicals 7 M€ High raw material and energy prices
Slide 11: Water in Q3
Kemira Water in Q3 Organic growth 15% in local currencies Sales were high in all areas Operative EBIT 9.0 M€ (14.7) Sales price increase 17 M€ Volume increase 3 M€ High raw material prices and transportation costs: variable cost increase 24 M€ From Q2, operative EBIT rose by 3.5 M€ A
Slide 12: Specialty in Q3
Kemira Specialty in Q3 Revenue from continuing business operations up by 9% EBIT from continuing business increased by 28% Demand for formic acid and its price level remained healthy TiO2 JV with Rockwood Holdings started operations in September Impact on Q3 revenue -19 M€, on operative EB
Slide 13: Coatings in Q3
Kemira Coatings in Q3 Organic growth in local currencies 9% High sales in most of the markets Slowdown in new construction in the Baltics affected sales Operative EBIT 30.4 M€ (27.7) Sales price increases and product mix alterations 14 M€ High raw material and energy prices: variable cos
Slide 14: Group’s Outlook
Kemira Group’s Outlook Kemira Group's growth in continuing operations is expected to be moderate and primarily fuelled by organic growth in the last months of the year. In 2008, Kemira’s operating profit and earnings per share, excluding non- recurring items, are expected to remain below last ye
Slide 15: Strategy Implementation Moving Ahead
Strategy Implementation Moving Ahead New organization 3 segments: Paper, Water, Oil and Mining 4 geographical areas: North America, Latin America, APAC, EMEA Functions will be organized globally, providing services for all Kemira businesses → Basis for a harmonious corporate culture and oper
Slide 16: Organization (Oct 1, 2008)
Kemira Organization (Oct 1, 2008) President & CEO - Harri Kerminen Deputy CEO – Esa Tirkkonen Paper Water Oil and Mining Petri Helsky Pekka Ojanpää Randy Owens Finance & IT Jyrki Mäki-Kala, CFO Legal Jukka Hakkila Supply Chain Management Petri Boman R&D and Technology Johan Grön HR Eeva Salonen Comm
Slide 17: IR: Päivi Antola, tel +358 10 862 1140
IR: Päivi Antola, tel +358 10 862 1140 17