Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Investor Day (September 2006)
17 slides from Kemira Oyj's investor day presentation, Sep 12, 2006
Slide 1: Focus to Value Creation
Focus to Value Creation Lasse Kurkilahti President & CEO Capital Markets Day 12 September 2006 Contents Restructuring 2004–2006 2004 Targets Met Focus to Value Creation 2
Slide 2: Restructuring 2004–2006: Starting Point for Transformation Work in 2004
Restructuring 2004–2006 Starting Point for Transformation Work in 2004 Global group of leading chemicals businesses with unique positions and high mutual synergy Great profitability, continuous improvement (EPS, ROCE) Continuous growth, organic and through M&A Participative, entrepreneurial company
Slide 3: Restructuring for Leading Positions
Restructuring for Leading Positions Acquisitions worth EUR ~ 1 billion, Divestments worth EUR ~ 900 million, revenue EUR ~ 1.4 billion revenue EUR ~ 1.3 billion Pulp & Paper Chemicals Pulp & Paper Chemicals + Lanxess paper chemicals (2006) − Hydrogen peroxide in South Korea (2006) + Finnish Chemical
Slide 4: Continuous Growth and Improvement of EPS and ROCE
Continuous Growth: Organic / M&A 2800 2400 2000 1600 MEUR 1200 800 400 0 2002 2003 2004* 2005 2006 Q1 Q2 Q3 Q4 *Continuing operations 7 Continuous Improvement of EPS and ROCE 1 12 0,9 0,8 10 0,7 8 0,6 EUR % 0,5 6 0,4 0,3 4 0,2 2 0,1 * Continuing operations 0 0 excluding a non- recurring charge of 44
Slide 5: Financial Overview
Financial Overview EUR million 2001 2002 2003 2004* 2005 1H06 Sales 2454 2612 2738 1695 1994 1200 EBIT 144 40 149 112 166 97 EBIT-% 6 2 5 7 8 8 EPS 0.58 0.07 0.64 0.50 0.73 0.47 ROCE % 7.9 2.3 7.5 8.6 9.9 10.4 *Continuing operations 9 Participative Culture Emerging Kemira Climate Index 67 66 65 64 6
Slide 6: Strengths in Culture a Good Base for Further Progress
Strengths in Culture a Good Base for Further Progress Most significant strengths Most significant development Management and leadership areas Well organized, efficient and Consulting the personnel more high quality work often when making decisions Staff training (incl. induction concerning them into
Slide 7: 2004 Targets Met; Reaching All-Time High in Revenue
2004 Targets Met More focused Global group of leading chemicals businesses Unique positions Continuous growth, organic and through M&A Improving profits Change in culture already visible 13 Reaching All-Time High in Revenue Revenue 2005, Pro Forma ~ EUR 2.8 Billion Other Asia 1% Paints & Coatings 5%
Slide 8: Pulp & Paper Chemicals and Kemwater
Pulp & Paper Chemicals No 1 pulp & paper chemicals supplier in the world Revenue 2005, pro forma ~ 1,070 MEUR (incl. Lanxess paper chemicals & Finnish Chemicals for the whole year) Good market position Globally No 1 Europe No 2 North America No 2 Asia & South ROW Additives Pigments America 5% 7% 2%
Slide 9: Performance Chemicals and Paints & Coatings
Performance Chemicals Leading position in growing specialty chemicals segments Revenue 2005, pro forma: 444 MEUR (incl. Verdugt for the whole year) Good market position TiO2 Pigments: Leading producer of TiO2 for printing inks ChemSolutions: No 1 globally in selected customer segments Chemidet: No 3
Slide 10: Global Kemira: Sites in Countries; Personnel
Global Kemira: 140 Sites in 40 Countries Pulp & Paper Chemicals Kemwater Performance Chemicals Paints & Coatings 19 Personnel Personnel 31 July 2006, Pro Forma*: 10.250 Other Asia 7% Pulp & Paper 3% Chemicals Americas 23 % 15 % Paints & Coatings 40 % Water Treatment Chemicals 19 % Europe Performance
Slide 11: Continued Challenges
Continued Challenges Profitability improvement towards targets Continuous efficiency improvements Strengthening mutual synergy Geographical expansion to growth/emerging markets Strenghtening # 1 positions Transformation to participative entrepreneurial culture 21 Focus to Value Creation
Slide 12: Strategic Goal; Primary Focus in Profitability
Strategic Goal Global group of leading chemicals businesses with unique positions and high mutual synergy Great profitability, continuous improvement (EPS, ROCE) Continuous growth, organic and through M&A Expansion into emerging markets Solution provider leadership driven by customer needs Participa
Slide 13: Organic Growth > 5% / Year; Expansion into Emerging Markets
Organic Growth > 5% / Year Extended sales New customers New geographies Cross-selling New products and applications/solutions Strong R&D New Sales Ratio up 25 Expansion into Emerging Markets Brazil / Russia India & China Current activity Lat. / CIS Neigh- America bours Emerging markets (Eastern Euro
Slide 14: Solution Provider Leadership
Solution Provider Leadership Stronger focus on customer orientation and customer specific solutions From chemicals supplier to performance provider Solutions based on co-operation between industries and partners in customer value chain More external networking → Customer loyalty and pricing power 27
Slide 15: Mergers, Acquisitions and Divestments; Opportunities within Business Areas
Mergers, Acquisitions and Divestments Criteria for M&A&D: Prerequisites for acquisitions: Strategic fit EPS enhancing Focus Significant synergies Value creation Long-term gearing below 100% Financing Primarily with cashflow Debt Share issues Divestments 29 Opportunities within the Business Areas Pul
Slide 16: Shareholder Value Creation; Financial Targets
Shareholder Value Creation Continuous improvement of profitability Improving internal efficiency Integration of acquired businesses, synergy capture Towards solution provider leadership Stronger focus on customer orientation Growth Organic Mergers & Acquisitions, Divestments 31 Financial Targets for
Slide 17: Transformation Program “From Good to Great”
Transformation Program “From Good to Great” Operative Efficiency Culture Brand & Strategy All our actions lead We work for a strong, We want to be regarded towards World Class participative, as the leading expert in Operative Efficiency. entrepreneurial culture. our areas of Chemical We will create