2009-10-28 11:00:00 CET
2009-10-28 11:07:20 CET
REGULATED INFORMATION
Kemira Oyj - Interim report (Q1 and Q3)
Kemira Oyj's Interim Report January-September 2009
Kemira Group
Stock Exchange Release
October 28, 2009 at 12.00 noon (CET+1)
Operating profit excluding non-recurring items up by 22%, very strong
cash flow
January-September:
* Revenue in January-September 2009 amounted to EUR 1,905.4
million (January-September 2008: EUR 2,205.1 million). Revenue from
continuing business operations decreased by 7%.
* Operating profit excluding non-recurring items rose by 22%
to EUR 147.2 million (EUR 120.9 million). Operating profit
excluding non-recurring items in continuing business operations was
up by 28%.
* Cash flows after investments grew significantly to EUR
175.3 million (EUR 65.7 million). Strong cash flow strengthened the
balance sheet and gearing fell to 87% (Dec. 31, 2008: 107%).
* Earnings per share: EUR 0.61 (EUR 0.55).
* Kemira's revenue for October-December 2009 is expected to
remain behind the previous year due to reduced demand in customer
industries. Operating profit excluding non-recurring items is
expected to grow from the EUR 11.7 million recorded a year earlier.
Third quarter:
* Revenue in July-September 2009 amounted to EUR 645.8
million (July-September 2008: EUR 780.0 million). Revenue from
continuing business operations decreased by 13%.
* Operating profit excluding non-recurring items rose by 16%
to EUR 65.3 million (EUR 56.5 million). Operating profit excluding
non-recurring items in continuing business operations was up by
22%.
* Cash flows after investments were EUR 125.8 million (EUR
131.4 million, including the EUR 96.1 million associated with the
set-up of the joint venture in the titanium dioxide business).
* Earnings per share: EUR 0.33 (EUR 0.28).
Key Figures and Ratios
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Revenue 645.8 780.0 1,905.4 2,205.1 2,832.7
EBITDA 96.0 101.9 235.3 241.2 243.3
EBITDA, % 14.9 13.1 12.3 10.9 8.6
Operating profit,
excluding 65.3 56.5 147.2 120.9 132.6
non-recurring items
Operating profit 65.3 69.8 144.8 142.1 74.0
Operating profit,
excluding 10.1 7.2 7.7 5.5 4.7
non-recurring items, %
Operating profit, % 10.1 8.9 7.6 6.4 2.6
Financial income and -11.0 -20.7 -37.7 -45.8 -69.5
expenses
Profit before tax 53.8 48.8 101.6 96.3 1.8
Profit before tax, % 8.3 6.3 5.3 4.4 0.1
Net profit 40.6 35.4 76.2 70.3 1.8
EPS, EUR 0.33 0.28 0.61 0.55 -0.02
Capital employed* 2,009.2 2,043.2 2,009.2 2,043.2 2,062.8
ROCE %* 3.4 4.9 3.4 4.9 3.5
Cash flows after 65.7
investments 125.8 131.4 175.3 2.7
Equity ratio, % at 40
period-end 37 40 37 34
Gearing, % at 87
period-end 87 87 87 107
Personnel at period-end 8,561 9,392 8,561 9,392 9,405
* 12-month rolling average
Kemira's President and CEO Harri Kerminen:"This year, Kemira has sharply focused on improving its cash flow. In
January-September, cash flows after investments were very strong, EUR
175 million. Reasons for this were, among other things, effective
working capital management, higher EBITDA, and smaller capital
expenditure. With the strong cash flow, our gearing fell considerably
and reached 87% at the end of September, which is already close to
our target level of 40-80%.
Sales volumes have declined this year as demand has shrunk in several
customer industries, but this downward trend appears to have halted.
Despite the fall in revenue, operating profit excluding non-recurring
items in continuing businesses rose by 22% in the third quarter from
the same period a year earlier. This is due in large part to
efficiency improvement measures, fixed cost management, and lower
variable costs compared to the same period last year. The Municipal &
Industrial segment (previously Water) was able to significantly
strengthen its operating profit and cash flow. In July-September,
Kemira's operating profit excluding non-recurring items accounted for
10% of revenue compared with 7% a year earlier. Our medium-term
target level for operating profit as a percentage of revenue is 10%.
Kemira's vision is to be a leading water chemistry company.
Operational efficiency enhancement, profitability improvement and
stronger cash flows and balance sheet continue to be our key focus
areas, but we are gradually taking steps to also accelerate revenue
growth. Our organic growth objective is 5% per year."
A conference for analysts and the media:
Kemira will arrange a press conference for analysts and the media
today on October 28, 2009 starting at 1:00 p.m. at Kemira House,
Porkkalankatu 3, Helsinki. The press conference will be held in
Finnish. Harri Kerminen, Kemira's President and CEO, will present the
results. Presentation material will be available on Kemira's website
at www.kemira.com at 1:00 p.m.
A conference call in English will begin at 3:00 p.m. Helsinki time.
In order to participate in the call, please dial +44 (0) 20 7162 0125
ten minutes before the conference begins, code 848374. Presentation
material will be available on Kemira's website. A recording of the
conference call will be available on Kemira's website later today.
Kemira Oyj will publish its results for 2009 on Tuesday, February 9,
2010 at 8:30 a.m.
For further information, please contact:
Jyrki Mäki-Kala, CFO
Tel. +358 10 86 21589
Päivi Antola, Senior Manager, IR & Financial Communications
Tel. +358 10 86 21140
Kemira is a global 2.8 billion euro chemicals company that is focused
on serving customers in water-intensive industries. The company
offers water quality and quantity management that improves customers'
energy, water, and raw material efficiency. Kemira's vision is to be
a leading water chemistry company. Its paints and coatings business,
Tikkurila, aims to be the market leader in decorative paints and
selected wood and metal coatings in chosen markets.
www.kemira.com
The new strategy announced in June 2008 resulted in some changes to
Kemira's business structure. Financial reporting reflects the new
structure from the beginning of 2009. Kemira's new reporting segments
are Paper, Municipal & Industrial (previously "Water"), Oil & Mining,
Tikkurila, and Other. The Other segment consists of specialty
chemicals such as organic salts and acids and the Group expenses not
charged to the segments (some research and development costs and the
costs of the CEO Office). Kemira aims to have Tikkurila listed on the
Helsinki Stock Exchange once market conditions permit.
Financial Performance in July-September 2009
Revenue from Kemira Group's continuing business operations fell by
13% in July-September 2009 compared to the same period a year earlier
due to weaker demand in several customer industries.
7-9/2008
July-September, Continuing business
EUR million 7-9/2009 operations 7-9/2008
Revenue 645.8 741.9 780.0
Operating profit, excluding
non-recurring items 65.3 53.4 56.5
Operating profit, excluding
non-recurring items, % 10.1 7.2 7.2
The impact of the titanium dioxide business transferred to a joint
venture has been eliminated in the continuing business operations.
Revenue in July-September 2009 amounted to EUR 645.8 million
(July-September 2008: EUR 780.0 million). In the Paper segment, sales
declined following weaker demand in customer industries. In Municipal& Industrial, demand decreased in some customer industries due to
lower capacity utilization rates, and delivery volumes to municipal
customers also fell in certain market areas. The Oil & Mining segment
experienced a decline in demand and revenue. In Tikkurila, demand
decreased considerably as new construction, building material sales,
and housing sales slowed down in all key markets. In the segment
Other, the demand and price of specialty chemicals supplied to the
food, feed, and pharmaceutical industries remained healthy.
Acquisitions had an approximately EUR 18 million positive impact on
revenue. The currency exchange effect had an approximately EUR 27
million negative impact on revenue, and the establishment of the
joint venture in the titanium dioxide business in 2008 decreased
revenue by approximately EUR 38 million.
Revenue, EUR million 7-9/2009 7-9/2008 1-12/2008
Paper 230.2 267.7 1,003.3
Municipal & Industrial 155.5 156.0 583.7
Oil & Mining 56.0 74.5 275.4
Tikkurila 158.1 193.7 648.1
Other* 65.7 104.3 414.8
Eliminations -19.7 -16.2 -92.6
Total* 645.8 780.0 2,832.7
*2008 includes the titanium dioxide business for the period of
January-August.
Operating profit for July-September 2009 was EUR 65.3 million (EUR
69.8 million, including EUR 13.3 million in non-recurring items).
Operating profit from continuing business, excluding non-recurring
items, increased by 22%, and mostly from lower costs. Variable costs
decreased by about EUR 36 million in July-September 2009 compared to
the same period a year earlier. Fixed costs decreased by about EUR 3
million compared to the same period a year earlier.
Acquisitions contributed approximately EUR 4 million to operating
profit. The currency exchange effect had an approximately EUR 3
million negative impact on operating profit. As of September 1, 2008
Kemira's share of the titanium dioxide joint venture's results is
being reported below operating profit. In the corresponding period a
year earlier, the titanium dioxide business made an operating profit
of approximately EUR 3 million.
Operating profit, excluding
non-recurring items, EUR million 7-9/2009 7-9/2008 1-12/2008
Paper 14.8 11.7 41.5
Municipal & Industrial 24.9 7.3 25.0
Oil & Mining 3.5 3.5 8.4
Tikkurila 26.3 30.4 59.2
Other* -4.2 3.3 -1.6
Eliminations - 0.3 0.1
Total* 65.3 56.5 132.6
*2008 includes the titanium dioxide business for the period of
January-August.
The share of associates' results was EUR -0.5 million (EUR -0.3
million).
The Group's net financial expenses in July-September totaled EUR 11.0
million (EUR 20.7 million). Net financial expenses decreased from the
corresponding period a year earlier mainly due to lower interest
costs.
Profit before tax in July-September amounted to EUR 53.8 million (EUR
48.8 million) and net profit totaled EUR 40.6 million (EUR 35.4
million). Earnings per share were EUR 0.33 (EUR 0.28).
Financial Performance in January-September 2009
Revenue from Kemira Group's continuing business operations fell by 7%
in January-September 2009 compared to the same period a year earlier
due to weaker demand in several customer industries.
1-9/2008
January-September, Continuing business
EUR million 1-9/2009 operations 1-9/2008
Revenue 1,905.4 2,057.6 2,205.1
Operating profit, excluding
non-recurring items 147.2 114.7 120.9
Operating profit, excluding
non-recurring items, % 7.7 5.6 5.5
The impact of the titanium dioxide business transferred to a joint
venture has been eliminated in the continuing business operations.
Revenue in January-September 2009 amounted to EUR 1,905.4 million
(January-September 2008: EUR 2,205.1 million). Acquisitions had an
approximately EUR 46 million positive impact on revenue. The currency
exchange effect had an approximately EUR 49 million negative impact
on revenue, and the establishment of the joint venture in the
titanium dioxide business in 2008 decreased revenue in
January-September by approximately EUR 148 million.
Operating profit for January-September 2009 was EUR 144.8 million
(EUR 142.1 million). Operating profit excluding non-recurring items
amounted to EUR 147.2 million (EUR 120.9 million). Operating profit
excluding non-recurring items in continuing business operations was
up by 28%. Sales price increases were implemented in the second half
last year in response to the significant increase in raw material
prices. This contributed to the increase in operating profit in
January-September compared to the same period a year earlier and
compensated for the impact of declined sales volumes on operating
profit. Other factors contributing to the improvement in operating
profit included lower variable and fixed costs, and the healthy
demand for specialty chemicals. Fixed costs in January-September were
approximately EUR 28 million lower than a year earlier. Variable
costs decreased by about EUR 6 million compared to the same period a
year earlier. Acquisitions contributed approximately EUR 9 million to
operating profit. The currency exchange effect had an approximately
EUR 7 million negative impact on operating profit. As of September 1,
2008 Kemira's share of the titanium dioxide joint venture's results
is being reported below operating profit. In the corresponding period
a year earlier, the titanium dioxide business made an operating
profit of approximately EUR 6 million.
The annual savings target of Kemira's global cost savings program is
more than EUR 85 million, with Tikkurila accounting for EUR 25
million. The savings are expected to materialize in 2008-2010 and the
full annual impact is expected to be felt from 2011 onwards. These
savings will affect the entire Group and will be achieved by
streamlining the Group structure, organization, and operating models.
The share of associates' results was EUR -5.5 million (EUR 0.0
million).
In January-September, profit before tax came to EUR 101.6 million
(EUR 96.3 million) and net profit totaled EUR 76.2 million (EUR 70.3
million). Taxes totaled EUR -25.4 million (EUR -26.0 million),
representing an effective tax rate of around 25% (27%). Earnings per
share were EUR 0.61 (EUR 0.55).
Financial Position and Cash Flows
In January-September 2009, the Group reported cash flows of EUR 226.8
million (EUR 77.1 million) from operating activities. Inventories
declined from the year-end by 23%, or by EUR 74.9 million. Cash flows
after investments were EUR 175.3 million (EUR 65.7 million). The cash
flow effect from expansion and improvement investments was EUR -35.1
million (EUR -87.2 million). Cash flow from acquisitions was EUR -3.6
million (EUR -140.4 million).
At the end of September, the Group's net debt stood at EUR 906.2
million (December 31, 2008: EUR 1,049.1 million). Net debt declined
mainly due to the stronger cash flows. Currency exchange rates
fluctuations reduced net debt by some EUR 8 million.
At the period-end, interest-bearing liabilities stood at EUR 1,119.0
million. Fixed-rate loans accounted for 56% of total interest-bearing
loans. The average interest rate on the Group's interest-bearing
liabilities was 5.1% (5.5%). At the end of September, the duration of
the Group's interest-bearing loan portfolio was 17 months (December
31, 2008: 17 months).
The unused amount of the EUR 750 million revolving credit facility
that falls due in 2012 was EUR 424.0 million at the end of September,
or 57% of the total amount. Short-term liabilities maturing in the
next 12 months amounted to EUR 204.5 million at the end of September,
with commercial papers issued in the Finnish markets representing EUR
146.6 million and repayments of long-term loans representing EUR 43.1
million. Cash and cash equivalents totaled EUR 212.9 million on
September 30, 2009. Based on its current structure, it is expected
that the Group will not encounter any significant refinancing needs
in 2009-2010, since the current loan arrangements cover its financing
needs. The terms of the revolving credit facility and other major
bilateral loan agreements require that the Group's equity ratio must
be more than 25%.
At the end of September, the equity ratio stood at 37% (December 31,
2008: 34%), while gearing was 87% (December 31, 2008: 107%). Gearing
declined as a result of the decrease in interest-bearing net
liabilities and the increase in equity. The net impact of currencies
on shareholders' equity was approximately EUR 20 million. In April,
after the Annual General Meeting, Kemira Oyj paid out EUR 30.3
million in dividends.
The Group's net financial expenses for January-September totaled EUR
37.7 million (EUR 45.8 million). The decrease in net financial
expenses can be attributed to the lower market interest level and
smaller liabilities.
Capital Expenditure
Gross capital expenditure, excluding acquisitions, amounted to EUR
50.5 million (EUR 116.3 million). Expansion investments represented
around 34% of capital expenditure excluding acquisitions, improvement
investments around 35%, and maintenance investments around 31%.
Full-year capital expenditure excluding acquisitions is expected to
total less than EUR 100 million.
The Kemira Group's depreciation came to EUR 90.5 million (99.1
million).
Cash flow from the sale of assets was EUR 2.5 million (EUR 245.3
million). Cash flow from acquisitions was EUR 3.6 million (EUR 140.4
million). The Group's net capital expenditure totaled EUR 51.5
million (EUR 11.4 million).
Research and Development
In January-September, research and development expenditure totaled
EUR 35.6 million (EUR 44.4 million), accounting for 2% (2%) of
revenue.
In September, Kemira opened its North American research and
development center located at Technology Enterprise Park on the
campus of the Georgia Institute of Technology in Atlanta. The Atlanta
facility will have global responsibility in Kemira's R&D network for
paper tissue and recycled fiber research, oil and mining research as
well as defoamer and polymer chemistry research. Operations at the
center were launched in June 2009. Kemira's other R&D centers are
located in Espoo, Finland; Leverkusen, Germany and Shanghai, China.
A fifth center will be established in São Paulo, Brazil during 2010.
Human Resources
The number of Group employees at the end of September was 8,561
(9,392).
Kemira conducted a personnel survey in May-June. The objective of the
survey was to assess personnel satisfaction and commitment and to
identify the organization's strengths and development areas. The
response rate of 87% is very high, which is a positive sign of the
personnel's willingness to express their views on Kemira as a
workplace. The survey showed that people found their work challenging
and interesting, and were satisfied with their work. When asked to
name key organizational strengths, employees mentioned supervisory
work and leadership. Supervisors were found to be easy to approach,
and trust and recognition for achievements were also considered
strengths. According to the survey, further development was needed in
communicating Kemira's strategy, objectives and structure.
Kemira participates in Baltic Sea Action Group's Commitment to Act
Kemira participates in the pro-Baltic Sea work carried out by the
Baltic Sea Action Group and announced its commitment to act in
August. The Commitment to Act was initiated by the Baltic Sea Action
Group, a neutral Finland-based organization founded in March 2008 to
rescue the Baltic Sea. Kemira's business plays a direct role in
decreasing the wastewater load in the Baltic Sea, as a significant
share of the communities and cities within the Baltic Sea watershed
clean their waste water using chemicals supplied by Kemira. In its
Commitment to Act, Kemira agrees to lend its expertise and research
efforts to returning sludge-borne valuable nutrients, nitrogen and
phosphorus, safely into the natural cycle without causing
eutrophication in waterways.
Near-Term Risks and Uncertainty Factors
The key risks and uncertainty factors affecting Kemira's business are
related to general economic developments and their impact on the
demand for Kemira's products.
Sharp fluctuations in global electricity and oil prices will affect
raw material prices and the cost of logistics and, therefore, be
reflected in Kemira's performance.
If the industrial by-products Kemira uses as raw materials were to be
in short supply or even run out entirely, this could have a negative
effect on Kemira's results, particularly in the Municipal &
Industrial segment. Similarly, capacity reductions in the raw
material supplier chain may affect Kemira's production costs. As a
result of the general economic development, some of our partners such
as companies in the logistics business may experience difficulties,
which may affect Kemira's operations temporarily.
With progressive implementation of the REACH legislation, the number
of raw materials and their suppliers may be reduced, which could
raise Kemira's raw material costs. Also, registration of Kemira's own
products under REACH may be more expensive than anticipated,
especially if costs cannot be shared with other companies.
Furthermore, currency exchange rate volatility in Kemira's key
currencies may affect the Group's figures.
A detailed account of Kemira's risk management principles and
practices is available at the company's website, www.kemira.com. An
account of financial risks was published in the Notes to the Accounts
section of the Financial Statements for 2008. Kemira's environmental
report discusses environmental and accident risks.
Segments
Paper
We offer chemical products and integrated systems that help customers
in the water-intensive pulp and paper industry to improve their
profitability as well as their water, raw material and energy
efficiency. Our solutions support sustainable development.
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Revenue 230.2 267.7 676.8 756.5 1,003.3
EBITDA 26.9 23.0 67.6 66.8 69.4
EBITDA, % 11.7 8.6 10.0 8.8 6.9
Operating profit,
excluding 14.8 11.7 30.3 31.7 41.5
non-recurring items
Operating profit 14.8 10.9 30.3 30.9 -2.6
Operating profit,
excluding 6.4 4.4 4.5 4.2 4.1
non-recurring items, %
Operating profit, % 6.4 4.1 4.5 4.1 -0.3
Capital employed* 806.5 806.3 806.5 806.3 826.7
ROCE %* -0.4 3.5 -0.4 3.5 -0.3
Capital expenditure,
excluding acquisitions 6.0 9.9 24.5 41.1 51.7
Cash flow after
investments, excluding
interest and taxes 25.3 -8.3 56.8 27.9 15.5
* 12-month rolling average
The Paper segment's revenue in July-September 2009 shrank by 14% to
EUR 230.2 million (EUR 267.7 million) as demand in customer
industries has decreased markedly. The currency exchange effect had a
EUR 2 million negative impact on revenue.
The consumption of paper used in magazines and newspapers and the
number of printed merchandizing items have fallen, particularly in
the traditional markets in Europe and North America. Management
estimates that demand has decreased by 10-25%, depending on the paper
grade. To adapt production to weaker demand, the Paper segment's
customers in the paper industry have cut back and shut down capacity,
and cleared stocks. The demand for packaging boards has also become
more sluggish, although Asia and Eastern Europe are showing signs of
recovery in demand.
Operating profit excluding non-recurring items for July-September was
EUR 14.8 million (EUR 11.7 million). Operating profit as a percentage
of revenue rose to 6.4% from 4.4% last year (excluding non-recurring
items). Lower fixed and variable costs compensated for the decline in
sales volumes. Variable costs decreased by about EUR 12 million in
July-September 2009 compared to the same period a year earlier.
At the beginning of the year, Kemira and the Chinese company
Tiancheng Ltd. set up a joint venture, Kemira-Tiancheng Chemicals
(Yanzhou) Co., Ltd, to produce AKD wax, and adhesives derived from
this wax, for the paper and board industry. The company's operations
have started out as planned, and the company's home market in China
shows a healthy demand for the products.
Kemira has been taking measures over a period of several years to
adjust its paper and pulp chemicals business to the increasingly
challenging market. In addition to temporary production shut-downs,
AKD wax production in Vaasa, Finland, was shut down in March 2009.
Over the last few years, six North American production facilities
have been closed and this year Kemira will shut down its polymer
production in Columbus, USA.
In January-September the Paper segment's revenue fell by 11% to EUR
676.8 million (EUR 756.5 million). The currency exchange effect had a
EUR 4 million positive impact on revenue. Operating profit excluding
non-recurring items was EUR 30.3 million (EUR 31.7 million). Variable
costs in January-September were approximately EUR 5 million higher
than in the same period in 2008 while fixed costs decreased.
Municipal & Industrial
We offer water treatment chemicals for municipalities and industrial
customers.
Our strengths are high-level process know-how, a comprehensive range
of water treatment chemicals, and reliable customer deliveries.
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Revenue 155.5 156.0 466.9 436.7 583.7
EBITDA 32.6 13.6 74.1 36.3 41.0
EBITDA, % 21.0 8.7 15.9 8.3 7.0
Operating profit,
excluding 24.9 7.3 53.5 18.1 25.0
non-recurring items
Operating profit 24.9 7.3 53.5 18.6 5.3
Operating profit,
excluding 16.0 4.7 11.5 4.1 4.3
non-recurring items, %
Operating profit, % 16.0 4.7 11.5 4.3 0.9
Capital employed* 357.3 321.2 357.3 321.2 342.7
ROCE %* 11.2 7.7 11.2 7.7 1.6
Capital expenditure,
excluding acquisitions 3.7 3.2 9.2 23.0 29.7
Cash flow after
investments, excluding
interest and taxes 28.2 -9.4 84.1 -10.5 -13.8
* 12-month rolling average
The Municipal & Industrial segment's (formerly Water segment) revenue
in July-September 2009 totaled EUR 155.5 million (EUR 156.0
million). The currency exchange effect had a EUR 2 million negative
impact on revenue. Acquisitions had an approximately EUR 7 million
positive impact on revenue.
Healthy demand continued in the municipal water treatment business
despite a decrease in delivery volumes to municipal customers in
certain market areas. In the industrial water treatment business,
demand has decreased in some customer industries due to lower
capacity utilization rates, but in other industries, such as the food
industry and power production, demand for water treatment chemicals
has been stable. Total delivery volumes fell slightly in
July-September 2009 compared to the same period a year earlier.
Operating profit excluding non-recurring items was EUR 24.9 million
(EUR 7.3 million). Operating profit as a percentage of revenue rose
from 4.7% last year to 16.0%. Variable costs decreased by about EUR
18 million in July-September compared to the same period a year
earlier. Fixed cost savings also boosted the operating profit.
Acquisitions had an approximately EUR 2 million positive impact on
operating profit.
In September, Kemira and Akzo Nobel agreed that Kemira will take over
Akzo Nobel's water treatment iron coagulant business in Scandinavia
(Sweden, Norway and Denmark). The business deal did not involve any
transfer of personnel or production facilities.
In January-September the Municipal & Industrial segment's revenue
rose by 7% to EUR 466.9 million (EUR 436.7 million). Acquisitions had
an approximately EUR 20 million positive impact on revenue. Delivery
volumes were lower than in the same period a year earlier but average
prices were higher. Operating profit excluding non-recurring items
was EUR 53.5 million (EUR 18.1 million). Factors contributing to the
improvement in operating profit included higher sales prices and
lower variable and fixed costs. Acquisitions contributed
approximately EUR 5 million to operating profit.
The business segment was renamed Municipal & Industrial in September
to replace the previous name "Water". The new name describes the
segment's customer base, which ranges from small municipalities to
big cities and various industries.
A reclassification will be made to revenue in the final quarter based
on new customer assignments that will lower the Municipal &
Industrial segment's revenue for 2009 by less than EUR 10 million,
and correspondingly will raise the Oil & Mining segment's revenue by
less than EUR 10 million.
Oil & Mining
We offer a large selection of innovative chemical extraction and
process solutions for the oil and mining industries, where water
plays a central role. Utilizing our expertise, we enable our
customers to improve efficiency and productivity.
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Revenue 56.0 74.5 165.6 208.8 275.4
EBITDA 5.7 5.9 15.6 17.4 15.3
EBITDA, % 10.2 7.9 9.4 8.3 5.6
Operating profit,
excluding 3.5 3.5 8.7 7.8 8.4
non-recurring items
Operating profit 3.5 3.4 8.7 9.6 1.9
Operating profit,
excluding 6.3 4.7 5.3 3.7 3.1
non-recurring items, %
Operating profit, % 6.3 4.6 5.3 4.6 0.7
Capital employed* 154.7 156.3 154.7 156.3 160.4
ROCE %* 0.6 -1.3 0.6 -1.3 1.2
Capital expenditure,
excluding acquisitions 1.2 1.7 2.7 7.5 8.8
Cash flow after
investments, excluding
interest and taxes 4.3 5.1 13.2 16.8 14.3
* 12-month rolling average
The Oil & Mining segment's revenue in July-September dropped by 25%
to EUR 56.0 million (EUR 74.5 million). Revenue fell as a result of
weaker demand, particularly in the mining industry. The currency
exchange effect had a EUR 2 million positive impact on revenue.
In the oil and gas industry, demand remained flat as a consequence of
cuts in exploration, drilling, and production services. Demand
recovery is expected with oil and gas as prices increase. In mining,
some signs of improvement were seen in metals, where iron-ore
production has increased significantly to feed steel mills.
Improvement in aluminum consumption is also expected.
Operating profit excluding non-recurring items for July-September was
EUR 3.5 million (EUR 3.5 million). Operating profit as a percentage
of revenue rose to 6.3% from 4.7% last year (excluding non-recurring
items). Lower sales volumes were compensated by lower variable costs
which decreased by about EUR 7 million in July-September compared to
the same period a year earlier.
In January-September, revenue fell by 21% to EUR 165.6 million (EUR
208.8 million) due to weak demand. The currency exchange effect had a
EUR 10 million positive impact on revenue. Operating profit excluding
non-recurring items was EUR 8.7 million (EUR 7.8 million). Variable
costs in January-September were approximately EUR 12 million lower
than in the same period in 2008.
Oil & Mining segment is based on Kemira's water competence and water
treatment product range. Its strategy is to focus on extraction and
process solution where water quality and quantity management plays a
central role for the customers. Oil & Mining implements this strategy
by leveraging Kemira's global presence, production footprint, and
research network.
A reclassification will be made to revenue in the final quarter based
on new customer assignments that will raise the Oil & Mining
segment's revenue for 2009 by less than EUR 10 million, and
correspondingly will lower the Municipal & Industrial segment's
revenue by less than EUR 10 million.
Tikkurila
Our product range consists of decorative paints and coatings for the
wood and metal industries. We provide consumers, professional
painters, and industrial customers with branded products and expert
services in approximately 40 countries.
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Revenue 158.1 193.7 431.7 544.6 648.1
EBITDA 31.2 35.2 66.5 86.1 78.2
EBITDA, % 19.7 18.2 15.4 15.8 12.1
Operating profit,
excluding 26.3 30.4 54.8 71.8 59.2
non-recurring items
Operating profit 26.3 30.4 52.4 71.8 59.2
Operating profit,
excluding 16.6 15.7 12.7 13.2 9.1
non-recurring items, %
Operating profit, % 16.6 15.7 12.1 13.2 9.1
Capital employed* 306.5 324.2 306.5 324.2 323.6
ROCE %* 13.0 20.4 13.0 20.4 18.3
Capital expenditure,
excluding acquisitions 2.7 3.9 11.0 17.9 32.1
Cash flow after
investments, excluding
interest and taxes 64.8 59.0 52.5 56.0 52.2
* 12-month rolling average
Tikkurila's revenue in July-September decreased by 18% and totaled
EUR 158.1 million (EUR 193.7 million). The decrease is associated
with the general economic recession, which caused a slowdown in both
new construction and the sales of building materials and resulted in
more sluggish housing sales in all key markets. The currency exchange
effect had a EUR 24 million negative impact on revenue. Acquisitions
had an approximately EUR 3 million positive impact on revenue.
Operating profit excluding non-recurring items for July-September was
EUR 26.3 million (EUR 30.4 million). Operating profit decreased as
sales volumes declined, even though the average price of sold
products was higher than in the comparison period. Variable costs
increased by about EUR 5 million compared to the same period a year
earlier while fixed costs decreased. The currency exchange effect had
a EUR 3 million negative impact on operating profit.
The operations of the logistics and service center in Mytishchi near
Moscow, which came on stream in February, have started out well. The
center now houses all of Tikkurila's decorative paints and industrial
paints operations in the Moscow region and features facilities for
customer training. This center will further improve Tikkurila's
customer services in Moscow and the surrounding area.
In August, Tikkurila announced its intentions to acquire the 50%
stake of the Slovenian JUB coatings company in the trading company
Tikkurila JUB Romania SRL. The ownership was transferred on September
1, 2009, with 100% ownership now by Tikkurila. The name will change
to Tikkurila SRL. Tikkurila JUB Romania SRL was established in May
2008 for marketing, selling and distributing Tikkurila's and JUB's
decorative paints in Romania. In addition to decorative paints, the
service concept of Tikkurila SRL will also include Tikkurila's
industrial coatings. With an office and a warehouse in Bucharest, the
company employs around 10 people.
Due to lower sales volumes, Tikkurila's revenue in January-September
fell by 21% to EUR 431.7 million (EUR 544.6 million). The currency
exchange effect had a EUR 65 million negative impact on revenue.
Acquisitions had an approximately EUR 7 million positive impact on
revenue. Operating profit excluding non-recurring items was EUR 54.8
million (EUR 71.8 million). Variable costs in January-September were
approximately EUR 18 million higher than in the same period in 2008.
The currency exchange effect had a EUR 6 million negative impact on
operating profit.
The key elements of Tikkurila's strategy are customer focus,
profitable growth, geographic focus, strong brands, and one unified
Tikkurila. To improve customer services and efficiency, Tikkurila
will change its organization as of January 1, 2010 to reflect the
geographic division. The four new strategic business units are East,
Finland, Scandinavia, and Central Eastern Europe.
Kemira Oyj's Shares and Shareholders
In January-September, the Kemira Oyj share price registered a high of
EUR 11.90 and a low of EUR 4.26, the average price being EUR 7.23. On
September 30, the company's market capitalization, excluding treasury
shares, totaled EUR 1,325.8 million.
On September 30, the company's share capital totaled EUR 221.8
million and the number of registered shares was 125,045,000. Kemira
holds 3,854,771 treasury shares, accounting for 3.1% of outstanding
company shares and voting rights.
Changes in Group management
In August, Kemira Oyj's CFO Jyrki Mäki-Kala was appointed new Deputy
CEO as of September 1, 2009 following the retirement of the previous
Deputy CEO Esa Tirkkonen. Esa Tirkkonen was the Deputy CEO since 2000
and employed by the company since 1974.
Damage Claim for Violation of Competition Laws
On August 19, 2009, Kemira Oyj received a summons stating that Cartel
Damage Claims Hydrogen Peroxide SA (CDC) had filed an action against
six hydrogen peroxide manufacturers, including Kemira, for violations
of competition law applicable to the hydrogen peroxide business.
Kemira Oyj reported on the damage claim in the interim report for
January-June 2009.
Kemira Pension Fund's pension liability will be transferred
Kemira Oyj's statutory employees' pension insurance (TyEL) will be
transferred from Kemira Pension Fund to Varma Mutual Pension
Insurance Company on December 31, 2009. The transfer will not affect
the level of employees' pension security or its coverage. Due to the
transfer, Kemira will record non-recurring expenses of EUR 11 million
in the result to October-December. Kemira Oyj also has employees'
pension insurance in the Ilmarinen Mutual Pension Insurance Company.
Kemira to undertake a rights offering
The Board of Directors of Kemira has decided to undertake a share
offering to raise gross proceeds of approximately EUR 200 million
through an issue of new shares with pre-emptive rights for existing
shareholders. The four largest shareholders of the company support
the rights offering. The proceeds of the rights offering will be used
to support Kemira's growth strategy and vision to become a leading
water chemistry company, to enable the separation and listing of
Tikkurila and to strengthen Kemira's balance sheet. The rights
offering is subject to shareholder approval at an extraordinary
general meeting of shareholders scheduled to be held on November 23,
2009.
Listing of Tikkurila
Kemira aims to have the shares of Tikkurila listed on the Helsinki
Stock Exchange once market conditions permit. Kemira's Board of
Directors has approved a planned structure for the listing. According
to the planned structure Kemira would distribute a substantial
majority of the shares of Tikkurila as dividend to Kemira's
shareholders with Kemira retaining a minority holding in Tikkurila.
Kemira does not intend to raise cash proceeds for Kemira in
connection with Tikkurila's separation.
Outlook
Kemira's progress in January-September 2009 was very good. However,
the market situation is expected to remain challenging. Kemira will
continue its efficiency improvement measures launched earlier.
The annual savings target of the announced global cost savings
program is more than EUR 85 million, with Tikkurila accounting for
EUR 25 million. The savings are expected to materialize in 2008-2010
and the full annual impact is expected to be felt from 2011 onwards.
Kemira's revenue for October-December 2009 is expected to remain
behind the previous year due to reduced demand in customer
industries. Operating profit excluding non-recurring items is
expected to grow from the EUR 11.7 million recorded a year earlier.
Helsinki, October 28, 2009
Kemira Oyj
Board of Directors
All forward-looking statements in this review are based on the
management's current expectations and beliefs about future events,
and actual results may differ materially from the expectations and
beliefs contained in the forward-looking statements.
KEMIRA GROUP
The figures are unaudited.
All figures in this financial report have been rounded and
consequently the sum of individual figures can deviate from the
presented sum figure.
This Interim Consolidated Financial Statement has been prepared in
compliance with IAS 34.
The accounting policies adopted are consistent with those of the
Group's annual financial statement, added with the following changes.
Changes to the accounting policies as of January 1,
2009:
- IFRS 8 Operating Segments. The adoption of the standard has changed
the way in which segment information is presented. The segment
information in the financial statements changed at the beginning of
2009 owing to the reorganization of the Group. The comparative
figures have been published with separate release March 2009.
- IAS 23 Borrowing costs. The adoption of the amended standard will
mean a change to the consolidated financial statements' accounting
policies but will not have any material effect on the future
financial statements.
- IAS 1 Presentation of Financial Statements. The amendment of the
standard has changed the presentation of the income statement and the
statement of changes in equity.
INCOME STATEMENT 7-9/2009 7-9/2008 1-9/2009 1-9/2008 2008
EUR million
Revenue 645.8 780.0 1,905.4 2,205.1 2,832.7
Other operating
income 3.7 18.6 11.2 39.9 51.5
Expenses -553.5 -696.7 -1,681.3 -2,003.8 -2,640.8
Depreciation and
impairments -30.7 -32.1 -90.5 -99.1 -169.4
Operating profit 65.3 69.8 144.8 142.1 74.0
Financial income and
expenses,
net -11.0 -20.7 -37.7 -45.8 -69.5
Share of profit or
loss of
associates -0.5 -0.3 -5.5 - -2.7
Profit before tax 53.8 48.8 101.6 96.3 1.8
Income tax -13.2 -13.4 -25.4 -26.0 -
Net profit for the
period 40.6 35.4 76.2 70.3 1.8
Attributable to:
Equity holders of the
parent 39.3 34.4 73.4 66.8 -1.8
Minority interest 1.3 1.0 2.8 3.5 3.6
Net profit for the
period 40.6 35.4 76.2 70.3 1.8
Earnings per share,
basic
and diluted, EUR 0.33 0.28 0.61 0.55 -0.02
STATEMENT OF
COMPREHENSIVE INCOME
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 2008
Net profit for the
period 40.6 35.4 76.2 70.3 1.8
Other comprehensive
income, net of tax:
Available-for-sale
- change in fair
value - - - 59.2 35.3
Exchange
differences 19.9 -5.7 22.5 -12.9 -74.2
Hedge of net
investment in
foreign entities -1.7 - -2.5 2.3 9.1
Cash flow hedging:
amount entered in
shareholders'
equity -3.1 -8.0 2.0 -0.7 -22.0
Other changes -0.2 - -0.2 0.1 2.1
Other comprehensive
income,
net of tax 14.9 -13.7 21.8 48.0 -49.7
Total comprehensive
income 55.5 21.7 98.0 118.3 -47.9
Attributable to:
Equity holders of the
parent 54.1 21.2 94.9 114.9 -49.4
Minority interest 1.4 0.5 3.1 3.4 1.5
Total comprehensive
income 55.5 21.7 98.0 118.3 -47.9
BALANCE SHEET
EUR million
ASSETS 30.9.2009 31.12.2008
Non-current assets
Goodwill 659.6 655.1
Other intangible
assets 104.8 111.6
Property, plant and
equipment 742.6 765.7
Investments
Holdings in
associates 130.0 135.6
Available-for-sale
financial assets 161.3 159.8
Deferred tax assets 13.0 12.7
Other investments 12.9 11.5
Total investments 317.2 319.6
Defined benefit
pension receivables 54.3 54.0
Total non-current
assets 1,878.5 1,906.0
Current assets
Inventories 244.4 319.3
Receivables
Interest-bearing
receivables 4.2 7.6
Interest-free
receivables 458.5 507.4
Total receivables 462.7 515.0
Money market
investments
- cash equivalents 166.1 87.1
Cash and cash
equivalents 46.8 32.3
Total current assets 920.0 953.7
Total assets 2,798.5 2,859.7
EQUITY AND 30.9.2009 31.12.2008
LIABILITIES
Equity attributable
to equity
holders of the
parent 1,028.0 962.8
Minority interest 18.3 13.2
Total equity 1,046.3 976.0
Non-current
liabilities
Interest-bearing
non-current
liabilities 914.3 609.2
Deferred tax
liabilities 87.7 89.9
Pension liabilities 70.1 67.5
Provisions 57.3 61.8
Total non-current
liabilities 1,129.4 828.4
Current liabilities
Interest-bearing
current liabilities 204.7 559.3
Interest-free current
liabilities 411.3 485.2
Provisions 6.8 10.8
Total current
liabilities 622.8 1,055.3
Total liabilities 1,752.2 1,883.7
Total equity and
liabilities 2,798.5 2,859.7
CONSOLIDATED CASH
FLOW STATEMENT
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008 2008
Cash flows from
operating activities
Adjusted operating
profit 92.1 83.1 227.3 207.4 217.0
Interests and other
financing items -5.3 -14.8 -26.1 -47.6 -75.2
Dividend income - 0.1 0.2 0.1 1.0
Income taxes paid -7.1 0.4 -22.8 -18.2 -23.9
Total funds from
operations 79.7 68.8 178.6 141.7 118.9
Change in net working
capital 59.4 -6.3 48.2 -64.6 -28.7
Total cash flows from
operating activities 139.1 62.5 226.8 77.1 90.2
Cash flows from
investing activities
Capital expenditure
for acquisitions 0.1 -136.5 -3.6 -140.4 -180.8
Other capital
expenditure -14.4 -28.8 -50.5 -116.3 -161.0
Proceeds from sale of
assets 1.0 234.2 2.6 245.3 254.3
Net cash used in
investing activities -13.3 68.9 -51.5 -11.4 -87.5
Cash flow after
investing activities 125.8 131.4 175.3 65.7 2.7
Cash flows from
financing activities
Change in non-current
loans
(increase +,
decrease -) -120.2 68.0 -81.8 203.1 426.6
Change in non-current
loan receivables
(decrease +,
increase -) -0.9 -6.5 -1.7 -8.6 -7.1
Short-term financing,
net
(increase +,
decrease -) 47.7 -164.9 36.8 -174.4 -282.1
Dividends paid -0.5 -0.3 -33.5 -64.2 -64.2
Other -0.4 -20.0 -1.6 -12.3 -9.1
Net cash used in
financing activities -74.3 -123.7 -81.8 -56.4 64.1
Net change in cash
and cash equivalents 51.5 7.7 93.5 9.3 66.8
Cash and cash
equivalents at end of
period 212.9 61.9 212.9 61.9 119.4
Cash and cash
equivalents at
beginning of period 161.4 54.2 119.4 52.6 52.6
Net change in cash
and cash equivalents 51.5 7.7 93.5 9.3 66.8
STATEMENT OF CHANGES IN
EQUITY
EUR million
Equity attributable to equity holders of
the parent
Capital
paid-in Fair
in value
Share excess and other
of
capital par reserves
value
Shareholders'
equity at
January 1, 2008 221.8 257.9 68.2
Net profit for
the period - - -
Other
comprehensive
income, net of
tax - - 58.3
Total
comprehensive
income - - 58.3
Dividends paid - - -
Share-based
compensations - - -
Transfer between
restricted and
non-restricted
equity - - 0.9
Shareholders'
equity at
September 30,
2008 221.8 257.9 127.4
Shareholders'
equity at
January 1, 2009 221.8 257.9 81.4
Net profit for
the period - - -
Other
comprehensive
income, net of
tax - - 2.1
Total
comprehensive
income - - 2.1
Dividends paid - - -
Share-based
compensations - - -
Changes due to
business
combinations - - -
Transfer between
restricted and
non-restricted
equity - - 0.2
Shareholders'
equity at
September 30,
2009 221.8 257.9 83.7
Equity
attributable
to equity
holders of
the parent
Exchange Treasury Retained
differences shares earnings
Shareholders'
equity at
January 1, 2008 -41.1 -25.9 591.1
Net profit for
the period - - 66.8
Other
comprehensive
income, net of
tax -10.7 - 0.5
Total
comprehensive
income -10.7 - 67.3
Dividends paid - - -60.6
Share-based
compensations - - 0.6
Transfer between
restricted and
non-restricted
equity - - -0.9
Shareholders'
equity at
September 30,
2008 -51.8 -25.9 597.5
Shareholders'
equity at
January 1, 2009 -104.6 -25.9 532.2
Net profit for
the period - - 73.4
Other
comprehensive
income, net of
tax 19.5 - -0.1
Total
comprehensive
income 19.5 - 73.3
Dividends paid - - -30.3
Share-based
compensations - - 0.6
Changes due to
business
combinations - - -
Transfer between
restricted and
non-restricted
equity - - -0.2
Shareholders'
equity at
September 30,
2009 -85.1 -25.9 575.6
Minority
interests Total
Shareholders'
equity at 15.3 1,087.3
January 1, 2008
Net profit for 3.5 70.3
the period
Other
comprehensive -0.1 48.0
income, net of
tax
Total
comprehensive 3.4 118.3
income
Dividends paid -3.6 -64.2
Share-based - 0.6
compensations
Transfer between
restricted and
non-restricted - 0.0
equity
Shareholders'
equity at 15.1 1,142.0
September 30,
2008
Shareholders'
equity at 13.2 976.0
January 1, 2009
Net profit for 2.8 76.2
the period
Other
comprehensive 0.3 21.8
income, net of
tax
Total
comprehensive 3.1 98.0
income
Dividends paid -3.2 -33.5
Share-based - 0.6
compensations
Changes due to
business 5.2 5.2
combinations
Transfer between
restricted and
non-restricted - 0.0
equity
Shareholders'
equity at 18.3 1,046.3
September 30,
2009
Kemira had in its possession 3,854,465 of its treasury
shares at December 31, 2008. 306 shares granted according
share-based incentive plan were returned 2009. Kemira had
in its possession 3,854,771 of its treasury shares at
September 30, 2009. Their average acquisition share price
was EUR 6.73 and the treasury shares represented 3.1% of
the share capital and of the aggregate number of votesconferred by all the shares. The equivalent book value of
the treasury shares is EUR 6.8 million.
KEY FIGURES 7-9/2009 7-9/2008 1-9/2009 1-9/2008 2008
Earnings per
share, basic and
diluted, EUR 0.33 0.28 0.61 0.55 -0.02
Cash flow from
operations
per share, EUR 1.15 0.52 1.87 0.64 0.74
Capital
expenditure, EUR 14.3 165.3 54.1 256.7 341.8
million
Capital
expenditure / 2.2 21.2 2.8 11.6 12.1
revenue, %
Average number
of shares
(1000),
basic * 121,190 121,191 121,190 121,191 121,191
Average number
of shares
(1000),
diluted * 121,190 121,191 121,190 121,191 121,191
Number of shares
at end
of period 121,190 121,191 121,190 121,191 121,191
(1000), basic *
Number of shares
at end of
period (1000), 121,190 121,191 121,190 121,191 121,191
diluted *
Equity per
share,
attributable to
equity holders
of the parent, 8.48 9.30 7.94
EUR
Equity ratio, % 37.4 39.7 34.1
Gearing, % 86.6 86.7 107.5
Interest-bearing
net 906.2 990.5 1,049.1
liabilities,
EUR million
Personnel 8,954 10,145 9,954
(average)
* Number of shares
outstanding, excluding the
number of
shares bought
back.
REVENUE BY 7-9/2009 7-9/2008 1-9/2009 1-9/2008 2008
BUSINESS AREA
EUR million
Paper external 229.9 263.0 676.0 741.2 987.6
Paper 0.3 4.7 0.8 15.3 15.7
Intra-Group
Municipal &
Industrial 155.6 155.9 466.7 435.4 582.2
external
Municipal &
Industrial -0.1 0.1 0.2 1.3 1.5
Intra-Group
Oil & Mining 55.9 73.6 165.2 207.3 273.3
externalOil & Mining 0.1 0.9 0.4 1.5 2.1
Intra-Group
Tikkurila 158.1 193.7 431.7 544.6 648.1
external
Tikkurila - - - - -
Intra-Group
Other external 46.3 93.9 165.8 276.7 341.5
Other 19.4 10.4 56.8 56.2 73.3
Intra-Group
Eliminations -19.7 -16.2 -58.2 -74.4 -92.6
Total 645.8 780.0 1,905.4 2,205.1 2,832.7
OPERATING PROFIT 7-9/2009 7-9/2008 1-9/2009 1-9/2008 2008
BY BUSINESS AREA
EUR million
Paper 14.8 10.9 30.3 30.9 -2.6
Municipal & 24.9 7.3 53.5 18.6 5.3
Industrial
Oil & Mining 3.5 3.4 8.7 9.6 1.9
Tikkurila 26.3 30.4 52.4 71.8 59.2
Other -4.2 17.5 -0.1 11.1 10.1
Eliminations - 0.3 - 0.1 0.1
Total 65.3 69.8 144.8 142.1 74.0
CHANGES IN PROPERTY, PLANT
AND EQUIPMENT 1-9/2009 1-9/2008 2008
EUR million
Carrying amount
at beginning of 765.7 984.3 984.3
year
Acquisitions of 0.1 - 6.3
subsidiaries
Increases 46.9 97.0 127.9
Decreases -2.2 -5.3 -9.4
Disposal of - -168.4 -168.1
subsidiaries
Depreciation and -73.8 -83.6 -144.5
impairments
Exchange rate
differences and
other changes 5.9 5.5 -30.8
Net carrying
amount at end of 742.6 829.5 765.7
period
CHANGES IN
INTANGIBLE
ASSETS 1-9/2009 1-9/2008 2008EUR million
Carrying amount
at beginning of 766.7 738.9 738.9
year
Acquisitions of 2.4 3.1 36.3
subsidiaries
Increases 8.6 19.4 24.3
Decreases - -0.1 -
Disposal of - -8.1 -8.1
subsidiaries
Depreciation and -16.7 -15.5 -24.9
impairments
Exchange rate
differences and
other changes 3.4 5.8 0.2
Net carrying
amount at end of 764.4 743.5 766.7
period
CONTINGENT 30.9.2009 31.12.2008
LIABILITIES
EUR million
Mortgages 41.5 43.3
Assets pledged
On behalf of 5.6 5.2
own commitments
Guarantees
On behalf of 11.0 14.1
own commitments
On behalf of 1.1 1.2
associates
On behalf of 9.6 5.5
others
Operating
leasing
liabilities
Maturity 22.3 20.9
within one year
Maturity after 122.8 115.0
one year
Other
obligations
On behalf of 1.3 2.6
own commitments
On behalf of 1.8 1.9
associates
Major off-balance sheet
investment commitments
There were no major contractual commitments for the
acquisition of property, plant and equipment on September
30, 2009.
Litigation
On August 19, 2009, Kemira Oyj received a
summons stating that Cartel Damage Claims
Hydrogen Peroxide SA (CDC) had filed an action
against six hydrogen peroxide manufacturers,
including Kemira, for violations of competition
law applicable to the hydrogen peroxide
business. Due to its extensive international
operations the Group, in addition to the CDC
claim, is involved in a number of other legal
proceedings incidental to these operations and
it does not expect the outcome of these other
currently pending legal proceedings to have
materially adverse effect upon its consolidated
results or financial position.
RELATED PARTY
Transactions with related parties have not
changed materially after annual closing 2008.
DERIVATIVE
INSTRUMENTS
EUR million
30.9.2009 31.12.2008
Nominal Fair Nominal Fair
value value value value
Currency
instruments
Forward
contracts 394.9 0.9 427.6 11.7
of which hedges
of
net investment
in a foreign
operation - - - -
Currency options
Bought - - - -
Sold - - - -
Currency swaps 29.3 -3.8 27.6 -5.6
Interest rate
instruments
Interest rate
swaps 350.9 -9.2 338.8 -6.9
of which cash
flow hedge 304.0 -7.1 304.4 -6.5
Interest rate
options
Bought 110.0 - 110.0 -0.1
Sold - - - -
Bond futures 10.0 -0.1 10.0 -
of which open 10.0 -0.1 10.0 -
Other
instruments GWh GWh
Electricity
forward
contracts,
bought 1,204.1 -8.7 1,431.5 -10.7
of which cash
flow hedge 1,134.0 -8.3 1,378.9 -9.7
Electricity
forward
contracts, sold 52.6 0.4 52.6 1.2
of which cash
flow hedge - - - -
K tons K tons
Natural gas
hedging 15.6 -1.0 15.6 -2.0
of which cash
flow hedge 15.6 -1.0 15.6 -2.0
Salt derivatives 160.0 0.3 212.8 2.0
The fair values of the instruments
which are publicly traded are based on
market valuation on the date of
reporting. Other instruments have been
valuated based on net present values
of future cash flows. Valuation models
have been used to estimate the fair
values of options.
Nominal values of the financial
instruments do not necessarily
correspond to the actual cash flows
between the counterparties and do not
therefore give a fair view of the risk
position of the Group.
BUSINESS
COMBINATION
Tikkurila acquired 50% share of
Tikkurila JUB Romania SRL on September
2009. After the acquisition the
company is wholly owned by Tikkurila.
The business combination is
individually immaterial.
QUARTERLY
INFORMATION 2008 2008 2008 2008
EUR million Q4 Q3 Q2 Q1
Revenue
Paper external 246.4 263.0 234.7 243.5
Paper
Intra-Group 0.4 4.7 6.4 4.2
Municipal &
Industrial
external 146.8 155.9 143.7 135.8
Municipal &
Industrial
Intra-Group 0.2 0.1 0.7 0.5
Oil & Mining
external 66.0 73.6 66.7 67.0
Oil & Mining
Intra-Group 0.6 0.9 0.1 0.5
Tikkurila
external 103.5 193.7 205.7 145.2
Tikkurila
Intra-Group - - - -
Other external 64.8 93.9 90.7 92.1
Other
Intra-Group 17.1 10.4 21.1 24.7
Eliminations -18.2 -16.2 -28.3 -29.9
Total 627.6 780.0 741.5 683.6
Operating profit
Paper -33.5 10.9 7.6 12.4
Municipal &
Industrial -13.3 7.3 4.7 6.6
Oil & Mining -7.7 3.4 2.4 3.8
Tikkurila -12.6 30.4 29.7 11.7
Other -1.0 17.5 -4.9 -1.5
Eliminations - 0.3 -0.2 -
Total -68.1 69.8 39.3 33.0
Operating
profit,
excluding
non-recurring
items
Paper 9.8 11.7 7.6 12.4
Municipal &
Industrial 6.9 7.3 4.6 6.2
Oil & Mining 0.6 3.5 2.4 1.9
Tikkurila -12.6 30.4 29.7 11.7
Other 7.0 3.3 -6.9 -5.0
Eliminations - 0.3 -0.2 -
Total 11.7 56.5 37.2 27.2
QUARTERLY
INFORMATION 2009 2009 2009
EUR million Q3 Q2 Q1
Revenue
Paper external 229.9 222.2 223.9
Paper
Intra-Group 0.3 -0.6 1.1
Municipal &
Industrial
external 155.6 160.4 150.7
Municipal &
Industrial
Intra-Group -0.1 0.3 -
Oil & Mining
external 55.9 52.3 57.0
Oil & Mining
Intra-Group 0.1 2.9 -2.6
Tikkurila
external 158.1 162.4 111.2
Tikkurila
Intra-Group - - -
Other external 46.3 53.6 65.9
Other
Intra-Group 19.4 18.1 19.3
Eliminations -19.7 -20.7 -17.8
Total 645.8 650.9 608.7
Operating profit
Paper 14.8 8.0 7.5
Municipal &
Industrial 24.9 18.2 10.4
Oil & Mining 3.5 3.2 2.0
Tikkurila 26.3 22.1 4.0
Other -4.2 -0.1 4.2
Eliminations - - -
Total 65.3 51.4 28.1
Operating
profit,
excluding
non-recurring
items
Paper 14.8 8.0 7.5
Municipal &
Industrial 24.9 18.2 10.4
Oil & Mining 3.5 3.2 2.0
Tikkurila 26.3 24.5 4.0
Other -4.2 -0.1 4.2
Eliminations - - -
Total 65.3 53.8 28.1
DEFINITIONS OF KEY FIGURES
Earnings per share (EPS): Equity ratio, %:
Net profit attributable to Total equity x 100 /
equity holders Total assets - prepayments
of the parent / received
Average number of shares
Cash flow from operations: Gearing, %:
Cash flow from operations, Interest-bearing net
after change in liabilities x 100 /
net working capital Total equity
and before investing
activities
Cash flow from operations Interest-bearing net liabilities:
per share: Interest-bearing liabilities -
Cash flow from operations / money market investments -
Average number of shares cash and cash equivalents
Equity per share: Return on capital employed
Equity attributable to equity (ROCE), %:
holders of the parent at Operating profit + share of profit
end of period / or loss of associates x 100 /
Number of shares at (Net working capital +
end of period property, plant and equipment
available for use + intangible
assets + investments in
associates) *
* Average
© 2024 Nasdaq, Inc. All Rights Reserved |