Kemira Oyj · OMXHEX:KEMIRA
Kemira Oyj — Investor Day (November 2020)
11 slides from Kemira Oyj's investor day presentation, Nov 19, 2020
Slide 1: Strong foundation to build on
CAPITAL MARKETS DAY Strong foundation to build on PETRI CASTRÉN CFO
Slide 2: We have delivered on our three promises from CMD 2017
We have delivered on our three promises from CMD 2017 HIGHER PROFITABILITY IMPROVED CASH FLOW EFFICIENT CAPITAL RETURNS OPERATIVE EBITDA CASH FLOW AFTER CAPITAL EMPLOYED OPERATIVE EBITDA MARGIN INVESTING ACTIVITIES OPERATIVE ROCE % (rolling 12 months) EUR EUR EUR million % million million % 1,998 1,
Slide 3: Operative ROCE and EBIT margins have improved in recent years
Operative ROCE and EBIT margins have improved in recent years PULP & PAPER INDUSTRY & WATER OPERATIVE ROCE AND EBIT MARGIN DEVELOPMENT OPERATIVE ROCE AND EBIT MARGIN DEVELOPMENT % % 20 20 17.6% 16 16 13.6% 14.0% 13.3% 12 11.1% 11.6% 11.2% 11.0% 12 10.5% 10.2% 10.0% 9.7% 9.8% 9.7%9.1% 8.9% 9.0% 11.0%
Slide 4: Stronger foundation is based on three pillars
Stronger foundation is based on three pillars 1. 2. 3. CUSTOMER PROFITABILITY EFFICIENCY OF OPERATIONS PRODUCT PORTFOLIO • Increased focus on customer-level • Two-segment structure EUR 15 AND MIX profitability since 2017 million • We have clearly simplified the • Share of low margin customers has •
Slide 5: Healthy financial position
Healthy financial position DEBT AND LIQUIDITY AS OF SEPTEMBER 30, 2020 MATURITY PROFILE EXCLUDING LEASES • Total interest-bearing debt EUR 972 million 450 400 400 • Liquidity EUR 186 million + undrawn RCF of EUR 400 350 million 300 250 182 200 200 156 150 150 129 100 Leases 121 million 13% 50 0 2020
Slide 6: Focus on building sustainable growth - target for operative EBITDA margin updated
Focus on building sustainable growth- target for operative EBITDA margin updated 1. ABOVE-THE MARKET GROWTH (UNCHANGED) +4% NEXT STEPS • Build further growth organically and via partnerships 2,486 2,593 2,662 2,137 2,373 2,363 1,822 • Growth opportunities: water treatment, CEOR, Oil sands tailings,
Slide 7: Capital allocation principles
Capital allocation principles CAPITAL ALLOCATION PRIORITIES CAPITAL EXPENDITURE • Continue to focus on key product areas: bleaching, Balanced capital allocation between: coagulants, polymers and sizing chemicals • Capex expected to be around similar levels in coming Profitable growth years • Investm
Slide 8: The dividend policy has been updated
The dividend policy has been updated KEMIRA’S NEW DIVIDEND POLICY Competitive and over-time increasing dividend No fixed payout ratio We have a solid dividend track record ◼ Dividend per share Dividend yield 0.56* 0.53 0.53 0.53 0.53 0.53 5.4% 4.9% 4.4% 4.6% 5.4% 5.2%** 2014 2015 2016 2017 2018 20
Slide 9: Factors to watch for in 2021
Factors to watch for in 2021 FACTORS IMPACTING OPERATIVE EBITDA DEVELOPMENT IN 2021 SUPPORTING UNCERTAINTIES POSSIBLE NEGATIVE • Contribution from recent • Uncertainty related to global FACTORS investments economic situation and its • Time lag to pass raw material • Restructuring in Pulp & impact on
Slide 10: Investment highlights
Investment highlights Strong profitability improvement track record 1 Focus on profitable sustainable growth Operative EBITDA margin target updated Attractive dividend 2 Updated dividend policy: competitive and over-time increasing dividend Increased focus on sustainability 3 Kemira will become the
Slide 11: KEMIFA bemisty
KEMIFA 100 bemisty