Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Q1 2001 Earnings Presentation
33 slides from Kemira Oyj's earnings presentation, 2001
Slide 1: Kemira Group Key figures 2000
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 1
Slide 2: World wide production
World wide production Production countries Net sales by region / 2000 Americas Other 8% Asia Europe 6% 10 % Other 2% EU 74 % 7/23/2008 www.kemira.com 2
Slide 3: Highlights 1Q 2001
Highlights 1Q 2001 Sales € 651 million, underlying growth 13 % Operating income € 57 million, up by > 50 % EPS € 0.28 (€ 0.13), up by > 100 % Equity / share € 9.41 The first share buy-back completed All figures for the year 2000 in this presentation have been restated to reflect the curr
Slide 4: Kemira Group 1Q 2001
Kemira Group 1Q 2001 30 Other Paints & 3% Coatings 25 15 % Chemicals 20 33 % 1Q01 € million 15 1Q00 Agro 10 Nitrogen 22 % 5 0 Agro Agro Chemicals Coatings Paints & Specialties 27 % Net sales 1Q 2001: € 651m Operating income 1Q 2001:€ 57m 7/23/2008 www.kemira.com 4
Slide 5: Strong growth
Strong growth Capital expenditure € 138m Agro Other 1% Chemicals 5% 13 % Acquisitions - 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 sulphate
Slide 6: AGM: Dividend and share buy-back
AGM Dividend € 0,30 - 41 % pay-out ratio of operative net result and about 5% yield 6 440 000 shares cancelled 18 April 2001 Share buy-back - further 6 118 000 shares - 5.0 % of shares - to be used for personnel profit plan, management incentive programme or acquisitions New option programme
Slide 7: Chemicals
Chemicals Industrial Pulp and Pulp and Chemicals Industrial Paper Paper 42% Chemicals 40% 38 % 44 % Kemwater Kemwater 18 % 18% Net sales 2000: € 867m Net sales 1Q 2001: € 225m 7/23/2008 www.kemira.com 7
Slide 8: Pulp & Paper Chemicals
Pulp & Paper Chemicals Sales + 17 % over 2000 y-o-y Sulphur Bleaching chemicals Pulp volumes coming down chemicals due to production cutbacks Finnish paper production - 3,7% in Q1 y-o-y Raw material prices increased reducing margins Specialty paper Expansion of Siilinjärvi calcium sulphate
Slide 9: Finnish pulp, paper and paperboard production
Finnish pulp, paper and paperboard production 6000 5000 1000 tonnes 4000 3000 2000 1000 0 00 01 94 98 99 95 97 96 19 19 19 20 20 19 19 19 Chemical pulp Paper and paperboard 7/23/2008 www.kemira.com 9
Slide 10: Kemwater
Kemwater Sales growth 8% over 2000 y-o-y Vision of St.Petersburg project advancing with financing from EU 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 10
Slide 11: Industrial Chemicals
Industrial Chemicals Sales 9 % over 2000 y-o-y Net sales 1Q 2001: € 93m TiO2 volumes + 13% and prices + 10%, Fine Chemicals signs of weakening volumes Chemidet € 21m to be invested to increase titanium dioxide pigment production to 130 000 tpa CC-products in Pori Pigments € 17m to be investe
Slide 12: Paints and Coatings
Paints and Coatings Paints Coatings 48% 32% Coatings Deco 52% 68% Net sales 2000: € 228m Net sales 1Q 2001: € 104m 7/23/2008 www.kemira.com 12
Slide 13: Paints and Coatings
Paints and Coatings Deco Tikkurila Paints and Alcro-Beckers integrated to form Tikkurila Deco Group - biggest paint producer in the Nordic countries - three strong brands together: Alcro, Beckers and Tikkurila Sales more than doubled Sales growth especially in Russia Margins reduced due to g
Slide 14: Agro
Agro Agro Food Chain Specialties Partner 45 % 30 % Agro Nitrogen 45 % Agro Nitrogen 55 % Specialty Crop Care 9% Animal nutrition Intermediates 6% 10 % Net sales 2000: € 1 227m Net sales 1Q 2001: € 328m 7/23/2008 www.kemira.com 14
Slide 15: Agro Specialties
Agro Specialties Sales volume growth 15% over 2000 y-o-y NPK prices up by 10% Urea phosphate production started in Dubai in March Feed phosphate demand increased in Europe by 25% due to BSE High gas prices putting strain on margins Danish restructuring continues Production in China sta
Slide 16: Agro Nitrogen
Agro Nitrogen Sales 29% below 2000 y-o-y Foot and mouth disease and record wet spring affecting sales Market prices of N continue firm High gas prices still affect profitability High inventories causing production cutbacks in Q2 Nitric acid plant in Rozenburg (The Netherlands) will be tr
Slide 17: There is a silver lining...
There is a silver lining... Record levels of rain until May Low nutrient reserves Nitrogen Reserves kgN/ha, Belgium 120 112 103 100 90 80 79 80 70 64 61 58 60 40 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 Average 9 years = 79kgN/ha Source : University of Gembloux 7/23/2008 www.kemira.com
Slide 18: 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 18
Slide 19: 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 19
Slide 20: 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 20
Slide 21: Agro
Agro Net sales Operating income % 150 15 1 200 1 000 100 10 € million 800 € million 600 50 5 400 0 0 200 0 -50 -5 '01 96 97 98 99 00 96 97 98 99 '00 '01 Q1 Q2 Q3 Q4 7/23/2008 www.kemira.com 21
Slide 22: 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 1Q01 7/23/2008 www.kemira.com 22
Slide 23: 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 23
Slide 24: Cash flow
Cash flow 550 450 350 € million 250 150 50 -50 -150 96 97 98 99 00 1Q01 Cash flow from operations Cash flow after investments and disposals 7/23/2008 www.kemira.com 24
Slide 25: Net income and CFROI
Net income and CFROI 250 16 14 200 12 150 10 € million CFROI % 100 8 6 50 4 0 2 96 97 98 99 00 1Q01 -50 0 EPS* 0.86 0.81 0.61 0.23 0.73 0.28 CFPS 2.05 2.00 0.96 1.41 1.69 0.07 7/23/2008 *) excluding non-recurring items 2000 www.kemira.com 25
Slide 26: Financial targets
Financial targets Profitable growth, capital efficiency and healthy balance sheet Rolling Target 2000 12 mths > 2001 Growth rate (%)1) 11 17 >10 EBIT margin (%)1) 8 8 >10 EPS growth (%) 217 232 >10 CFROI (%) 11 14 >10 Gearing 2) (%) 37 55 40-100 1) Continuing operations 2) Net debt/(equity
Slide 27: Valuation / ownership
Valuation / ownership Market capitalisation / equity Ownership 3 May 2001 1500 Finnish 1200 instit. 22.3 % Public 900 6.9 % € million Int. instit. 600 14.6 % 300 Finnish 0 95 96 97 98 99 00 01 State 56.2 % Equity / share € 9.41 Dividend € 0.30/share Mandate proposal 1/3 Â -95 option programm
Slide 28: 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 – No major changes in Kemwater’s outlook – Industrial Chemicals’ outlook good for formic acid, calcium chloride and detergent chemicals – Operating income is expected
Slide 29: Outlook for the year (2)
Outlook for the year (2) Agro – Uncertainty because of high inventory levels due to weather- related low deliveries during the spring in the UK and Continental Europe – Due to low nutrient content of soil demand is expected to improve later in the year – Increased demand for feed phosphates affect
Slide 30: Income statement
Income statement € million 1Q 2001 1Q 2000 2000 Net sales 651,4 707,2 2 486,0 Share of associates' profits 2,6 1,0 -0,5 Other income from operations 4,1 5,1 30,9 Cost of sales -561,2 -630,6 -2 170,3 Depreciation -40,2 -46,7 -171,3 Operating income 56,7 36,0 174,8 Financing income and expenses -8,2 -
Slide 31: Balance sheet
Balance sheet € million ASSETS 31.3.2001 31.12.2000 Non-current assets Intangible assets 173,9 88,7 Tangible assets 1 101,5 1 049,5 Investments 149,0 138,3 Total non-current assets 1 424,4 1 276,5 Current assets Inventories 400,0 348,7 Receivables Interest-bearing receivables 12,2 11,2 Other interes
Slide 32: Balance sheet
Balance sheet € million LIABILITIES AND SHAREHOLDERS´ EQUITY 31.3.2001 31.12.2000 Shareholders´ equity Share capital 217,0 217,0 Own shares -36,4 -28,8 Other shareholders´ equity 971,4 934,1 Total shareholders´ equity 1 152,0 1 122,3 Minority interests 18,4 18,0 Long-term liabilities Interest-bearin
Slide 33: Cash flow
Cash flow € million 1Q 2001 1Q 2000 2000 Cash flow from operations 8,4 -59,6 213,9 Capital expenditure -138,4 -27,5 -218,3 Sale of assets 3,9 6,7 527,2 Cash flow before financing -126,1 -80,4 522,8 Financing 7,6 75,2 -364,5 Increase / decrease in liquid funds -118,5 -5,2 158,3 7/23/2008 www.kemira.c