Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Q1 2009 Earnings Presentation
20 slides from Kemira Oyj's earnings presentation, May 6, 2009
Slide 1: Committed to Clean Water
Committed to Clean Water Harri Kerminen, President and CEO May 6, 2009
Slide 2: Kemira Focuses on Water
Kemira Focuses on Water Full utilization of shared competencies Water quality management Common product range Uniform Kemira Common objectives Common way of working The objective is to list Tikkurila on the stock market when the market situation so allows Tikkurila’s goal is to be th
Slide 3: Challenges Related to Water Usage
Challenges Related to Water Usage Sufficiency of clean water Increasing energy consumption The social and economical development of the world depends on the availability of clean water and the environmentally economical use of water and energy Shrinking the water footprint is even more impor
Slide 4: Kemira Group – Q1 Highlights
Kemira Group — Q1 Highlights Kemira
Slide 5: EBIT from Continuing Businesses Increased by 9%
EBIT from Continuing Businesses* Increased by 9% EBIT from continuing businesses increased by 9% in Q1 compared to Q1/2008 Sales price increases, cost savings, good demand for specialty chemicals Excluding Tikkurila, EBIT from continuing businesses increased by 70% Revenue from continuing bu
Slide 6: Key Figures
Key Figures Q1/2008 Q1/2008 (M€) Q1/2009 2008 Continuing Reported Revenue 608.7 629.3 683.6 2,832.7 Operative EBIT 28.1 25.8 27.2 132.6 Operative EBIT, % 4.6 4.1 4.0 4.7 Operative EPS (EUR) 0.05 0.09 0.29 EPS (EUR) 0.05 0.12 -0.02 Equity ratio, % 34 36 34 Gearing, % 113 99 107 CapEx excl. acquisitio
Slide 7: Revenue from Continuing Businesses Q1/2009 vs. Q1/2008
Revenue from Continuing Businesses Q1/2009 vs. Q1/2008 M€ 64 -100 629 15 609 -9 9 8 e e y s er 09 20 0 Pr ic um nc on th 20 l re iti O Vo ur u is C cq A
Slide 8: EBIT from Continuing Businesses Q1/2009 vs. Q1/2008
EBIT from Continuing Businesses Q1/2009 vs. Q1/2008 M€ 64 -39 0 -30 26 4 1 1 28 s e 08 09 s s e er y n st ic st m nc th 20 20 tio Pr co co lu re O Vo i is ur le d u xe b C cq ria Fi A Va
Slide 9: Balance Sheet
Balance Sheet 31 Mar 09 31 Dec 08 Net debt (M€) 1,095.0 1,049.1 Equity (M€) 970.5 976.0 Capital employed (M€)* 2,068.5 2,062.8 Net Working Capital (M€) 416.4 358.6 Equity ratio, % 34 34 Gearing, % 113 107 *12-month rolling average Net debt increased due to weaker cash flows and currency exchange r
Slide 10: No Refinancing Needs in the Near Future
No Refinancing Needs in the Near Future Kemira has diversified loan portfolio from different sources. The unused amount of the RCF as of March 31 was 304 M€. Utilization of the RCF increased 50 M€ from year end as less funding from commercial paper market was raised and as company increased liqu
Slide 11: Segments – Q1 Highlights
Segments — Q1 Highlights Kemifra
Slide 12: Paper
Paper Revenue decreased by 9% Customer demand weakened Operative EBIT 7.5 M€ (12.4) Lower sales volumes -17 M€ Sales price increase 25 M€ Variable cost increase, impact -15 M€ 6 production plants in NA have been shut down. Polymer production in Columbus, USA will be shut down in 2009.
Slide 13: Water
Water Revenue increased by 11% Demand in municipal water treatment remained good Weakening demand in some industrial customer segments Acquisition of Nheel Química, impact on revenue 6 M€ Operative EBIT 10.4 M€ (6.2) Sales price increase 13 M€ Lower sales volumes -4 M€ Variable cost
Slide 14: Oil & Mining
Oil & Mining Revenue declined by 19% Weaker demand in the mining industry Operative EBIT 2.0 M€ (1.9) Volume decrease -9 M€ Variable cost decrease, impact +3 M€ Sales price increase 8 M€ Oil & Mining is based on Kemira’s water competence and water treatment product range Using Kemira
Slide 15: Tikkurila
Tikkurila Revenue declined by 23% Slowdown in new construction and in the sales of building materials Currency exchange effect -17 M€ Operative EBIT 4.0 M€ (11.7) Volume decrease -12 M€ Variable cost increase, impact -7 M€ Sales price increase 9 M€ Logistics and service center near M
Slide 16: Other
Other Specialty chemicals Group expenses Specialty chemicals Specialty product lines based on a niche strategy Demand was good, with good price level and profitability Effective operations, excellent products and application know-how M€ Q1/09 Q1/08 2008 Revenue 85.2 116.8 414.8 Operative E
Slide 17: Kemira Group's Outlook
Kemira Group’s Outlook The market situation is challenging in many of Kemira’s customer industries. General economic trends are generating major uncertainties in customers’ and Kemira’s business operations. During the second quarter of the year, Kemira’s revenue is expected to fall compared to t
Slide 18: Focus
Focus Implementation of the water strategy Developing the company based on its Cash flow ↑ strengths Integration of the company EBIT % ↑ ↓ Gearing <100% with cash flow management Costs <80% by listing Tikkurila and exiting TiO2 JV Creating new Gearing ↓ Research and product developme
Slide 19: Kemira's Segments Bringing Different Opportunities to the Group
Kemira’s Segments Bringing Different Opportunities to the Group Municipal water treatment: Kemira’s strength globally, not cyclical Water Industrial water treatment: Opportunity to increase market share is the Oil & Mining: Opportunity to increase market share connection Paper: Adaptation ac
Slide 20: Kemifra
Kemifra