2010-04-29 07:30:00 CEST
2010-04-29 07:30:41 CEST
REGULATED INFORMATION
Kemira Oyj - Interim report (Q1 and Q3)
Kemira Oyj's interim report January-March 2010: A good start of the year, Tikkurila's separation was completed
Kemira Group
Stock exchange release
April 29, 2010 at 8.30 am (CET+1)
* Revenue in January-March 2010 increased by 3% to EUR 514.7 million
(January-March 2009: EUR 497.5 million). Tikkurila Oyj was separated from
Kemira on March 26, 2010 and is reported under Discontinued operations (see
tables).
* Operating profit excluding non-recurring items rose 62% to EUR 39.1 million
(24.1). Reported operating profit rose 59% to EUR 38.4 million (24.1).
* Cash flow from operating activities amounted to EUR 19.5 million (-22.1).
Cash flow includes Tikkurila until March 25, 2010.
* As a result of separating Tikkurila, the balance sheet strengthened and
gearing decreased to 42% (December 31, 2009: 53%).
* Earnings/share from continuing operations were EUR 0.18 (0.05).
* In 2010, Kemira expects demand to develop favorably as the economic
situation improves, even though there's still uncertainty with the
development of the demand. In the second quarter, Kemira's operating profit
excluding non-recurring items is expected to increase from the corresponding
period in 2009 (continuing operations). In April-June 2009, operating profit
excluding non-recurring items was EUR 29.3 million.
Harri Kerminen, President & CEO:"2010 started out well for Kemira. Demand recovered in January-March in many
customer industries and revenue increased by 3%. Of the segments, the revenue of
Oil & Mining increased considerably. Also in the Paper segment sales improved.
Operating profit increased by some 60% which is a remarkable improvement. In
addition to higher sales volumes, the result was boosted by lower costs. The
operating profit percentage excluding non-recurring items was 7.6% compared to
4.8% in the prior year period. All segments improved their profitability
considerably. Cash flow from operating activities was strongly positive.
Tikkurila was spun-off from Kemira in late March into a separate listed company
and trading with Tikkurila's shares commenced on March 26. As a result of
Tikkurila's separation, Kemira's financial position improved further.
Kemira, with the spin-off of Tikkurila, has become very focused on water
chemistry. With our expertise, expected new developments and vast market
potential, Kemira will have a strong platform for profitable growth in water
related customer industries."
Key figures and ratios
The figures in the text section of the interim report are for continuing
operations excluding Tikkurila, unless otherwise mentioned. Tikkurila Oyj was
separated from Kemira on March 26, 2010 and is reported under Discontinued
operations (see tables).
EUR million 1-3/2010 1-3/2009 1-12/2009
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Revenue 514.7 497.5 1,969.9
EBITDA 62.8 48.6 207.2
EBITDA % 12.2 9.8 10.5
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Operating profit excluding non-recurring items 39.1 24.1 124.9
Operating profit 38.4 24.1 109.7
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Operating profit excluding non-recurring items, % 7.6 4.8 6.3
Operating profit, % 7.5 4.8 5.6
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Financial income and expenses -7.9 -12.3 -37.8
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Profit before tax 31.7 8.0 76.5
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Net profit from continuing operations 27.7 6.7 67.1
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Net profit*** 558.7** 6.1** 85.5**
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EPS, EUR from continuing operations 0.18 0.05 0.47
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Capital employed* 1,633.2 1,726.5 1,659.3
ROCE, %* 7.6 0.6 6.3
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Cash flow after investments 132.7** -34.4** 202.2**
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Equity ratio, % at period-end 50 34** 45**
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Gearing, % at period-end 42 113** 53**
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Personnel at period-end 5,027 8,926** 8,493**
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*12-month rolling average.
**Includes Tikkurila until March 25, 2010.
***Net profit January-March 2010 includes a non-recurring income of EUR 529.2
million from the separation of Tikkurila, consisting of the difference between
the market price of Tikkurila on March 26, 2010 and the shareholder's equity of
Tikkurila on March 25, 2010 less the transfer tax related to Tikkurila's listing
as well as listing costs.
Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Due to the rights offering arranged in 2009, historical
per share key figures have been adjusted with the following formula: average
number of shares x 1.1.
Conference for analysts and the media:
Kemira will arrange a press conference for analysts and the media today on April
29, 2010 starting at 10:30 a.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 interim report. The presentation material will be
available on Kemira's website at www.kemira.com at 10:30 a.m. A conference call
in English will begin at 1:00 p.m. Finnish time. In order to participate in the
call, please dial +44 (0)207 1620 177, code 863784, ten minutes before the
conference begins. The presentation material will be available on Kemira's
website at www.kemira.com. A recording of the conference call will be available
on Kemira's website later today.
Kemira Oyj will publish its January-June interim report on Thursday July
29, 2010 at 8:30 a.m.
For further information, please contact:
CFO Jyrki Mäki-Kala
Tel. +358 10 86 21589
Päivi Antola, Senior Manager, Investor Relations and Financial Communications
Tel. +358 10 86 21140
Kemira is a global two 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.
www.kemira.com <http://www.kemira.com/>
www.waterfootprintkemira.com <http://www.waterfootprintkemira.com/>
The figures in the text section of the interim report are for continuing
operations excluding Tikkurila, unless otherwise mentioned. Tikkurila Oyj was
separated from Kemira on March 26, 2010 and is reported under Discontinued
operations (see tables).
Financial performance in January-March 2010
Kemira Group's revenue increased by 3% in January-March 2010 compared to the
corresponding period in 2009. January-March 2010 revenue was EUR 514.7 million
(January-March 2009: EUR 497.5 million). Demand recovered in January-March in
several customer industries. On the other hand, sales prices declined in some
products as a result of a drop in raw material prices seen last year. The
currency exchange effect increased revenue by about EUR 5 million.
Revenue, EUR million 1-3/2010 1-3/2009 1-12/2009
--------------------------------------------------
Paper 234.0 225.0 906.4
Municipal & Industrial 148.4 150.7 607.5
Oil & Mining 66.6 54.4 235.0
Other 65.8 85.2 300.4
Eliminations -0.1 -17.8 -79.4
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Total 514.7 497.5 1 969.9
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Operating profit rose by 59% in January-March 2010 compared to the corresponding
period in 2009 and amounted to EUR 38.4 million (24.1). Operating profit
excluding non-recurring items was EUR 39.1 million (24.1) and the operating
profit margin excluding non-recurring items was 7.6% (4.8%). The operating
profit was in particular boosted by lower variable costs and higher sales
volumes. Variable costs decreased by EUR 37 million in January-March 2010
compared to the corresponding period in 2009. Fixed costs were at last year's
level.
Operating profit excluding non-recurring items, EUR
million 1-3/2010 1-3/2009 1-12/2009
--------------------------------------------------------------------------------
Paper 15.2 7.5 44.9
Municipal & Industrial 16.7 10.4 66.4
Oil & Mining 6.4 2.0 14.2
Other 0.8 4.2 -0.6
Eliminations 0.0 0.0 0.0
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Total 39.1 24.1 124.9
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The share of associates' results was EUR 1.2 million (-3.8).
The January-March profit before tax was EUR 31.7 million (8.0). Net profit from
continuing operations totaled EUR 27.7 million (6.7). Net profit was EUR 558.7
million (6.1). Net profit includes a non-recurring income of EUR 529.2 million
from the separation of Tikkurila, consisting of the difference between the
market price of Tikkurila on March 26, 2010 and the shareholder's equity of
Tikkurila on March 25, 2010 less the transfer tax related to Tikkurila's listing
as well as listing costs. The separation of Tikkurila does not have a
significant impact on the shareholders' equity or distributable funds of Kemira
Oyj.
Earnings/share from continuing operations was EUR 0.18 (0.05).
Financial position and cash flow
Cash flow from operating activities in January-March 2010 amounted to EUR 19.5
million (-22.1). Cash flow includes Tikkurila until March 25, 2010. Cash flow
increased due primarily to higher EBITDA and effective working capital
management. Cash flow after investments amounted to EUR 132.7 million (-34.4).
Cash flow from investing activities includes the loan repayment from Tikkurila
as well as cash and cash equivalents transferred to Tikkurila, with a net effect
of EUR 129.3 million. The cash flow effect of expansion, improvement and
maintenance investments was EUR -16.1 million (-12.7). No acquisitions were
carried out during this or the prior year period.
At the end of the period, the Group's net debt stood at EUR 530.7 million
(December 31, 2009: EUR 675.6 million). The decrease in net debt was mainly due
to the separation of Tikkurila (effect approximately EUR 160 million). Currency
exchange rate fluctuations increased net debt by approximately EUR 23 million.
At the end of the period, interest-bearing liabilities stood at EUR 703.3
million (December 31, 2009: 950.2). Fixed-rate loans accounted for 86% of total
interest-bearing liabilities (December 31, 2009: 70%). The average interest rate
on the Group's interest-bearing liabilities was 4.2% (January-March
2009: 5.9%). At the period end, the duration of the Group's interest-bearing
loan portfolio was 21 months (December 31, 2009: 19 months).
The unused amount of the EUR 750 million revolving credit facility that falls
due in 2012 was EUR 728.8 million at the end of the period. Short-term
liabilities maturing in the next 12 months amounted to EUR 165.9 million, with
commercial papers issued on the Finnish markets representing EUR 57.6 million
and repayments of long-term loans representing EUR 100.6 million. Cash and cash
equivalents totaled EUR 172.7 million on March 31, 2010. Based on its current
structure, it is expected that the Group will not encounter any significant
refinancing needs in 2010, since the current loan arrangements cover its
financing needs. The terms of the revolving credit facility and other major
bilateral loan arrangements require that the Group's equity ratio must be more
than 25%.
At the end of the period, the equity ratio stood at 50% (December
31, 2009: 45%), while gearing was 42% (December 31, 2009: 53%). Kemira's gearing
target is 40-80%. Shareholders' equity decreased by approximately EUR 70 million
due to the separation of Tikkurila. The net impact of currencies on
shareholders' equity was approximately EUR 49 million.
The Group's net financial expenses were EUR 7.9 million (12.3). Net financial
expenses decreased from the corresponding period in 2009, due mainly to lower
debt and lower market interest levels.
Capital expenditure
Gross capital expenditure excluding acquisitions amounted to EUR 16.1 million
(12.7). Excluding Tikkurila, gross capital expenditure excluding acquisitions
was EUR 14.0 million (8.5). Expansion investments represented around 37% of
gross capital expenditure excluding acquisitions, improvement investments around
34% (excluding Tikkurila 35%), and maintenance investments around 29% (excluding
Tikkurila 28%).
The Group's depreciation amounted to EUR 24.4 million (24.5).
Cash flow from the sale of assets was EUR 0.3 million (0.4). The Group's net
capital expenditure totaled EUR 15.8 million (12.3), excluding Tikkurila EUR
14.0 million (8.5).
Research and development
Research and development expenditure was EUR 9.8 million (8.9), i.e. 2.0% (1.9%)
of all operating expenses (continuing operations).
In March Kemira and VTT announced an establishment of a major water research
center in Finland. The total cost of the research, which will be performed at
the center, is estimated at EUR 120 million, including external funding. The
investments are allocated over a period of 4 years, resulting further investment
activities in projects for piloting and proof on concept purposes. The center
will employ approximately 200 persons. The current Finnish competence of the
water sector is being gathered into the Center of Water Efficiency Excellence.
The goal is to develop unique water knowledge to Finland and to create new
business opportunities for companies in the environmental technology sector. The
research center supports Kemira's strategic target to become a leading water
chemistry company and to grow profitably by generating new business in the
already strong field of water knowledge.
Human Resources
The number of Group employees at the end of the period was 5,027 (March
31, 2009: 8,926). The number of personnel declined due to the separation of
Tikkurila.
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 1-3/2010 1-3/2009 1-12/2009
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Revenue 234.0 225.0 906.4
EBITDA 27.5 19.8 87.0
EBITDA % 11.8 8.8 9.6
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 15.2 7.5 44.9
Operating profit 15.2 7.5 40.1
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items, % 6.5 3.3 5.0
Operating profit, % 6.5 3.3 4.4
--------------------------------------------------------------------------------
Capital employed* 775.2 830.7 782.6
ROCE, %* 6.2 -0.9 5.1
--------------------------------------------------------------------------------
Capital expenditure, excluding acquisitions 8.2 5.1 37.8
Cash flow after investments, excluding interest and
taxes 22.8 6.3 75.6
*12-month rolling average
The Paper segment's revenue in January-March 2010 rose 4% to EUR 234.0 million
(225.0). Strong demand and a considerable price increase in pulp increased the
sales of pulp chemicals. Demand for packaging board has picked up in particular
in Asia and Eastern Europe since the second half of last year. The demand for
paper used in magazines and newspapers and the number of printed advertising
material has shown signs of recovery in the past months, but the amounts are
still low compared to the level seen before the recession. In some products,
sales prices declined as a result of a drop in raw material prices seen last
year. The currency exchange effects had a EUR 4 million positive impact on
revenue.
Operating profit for January-March was EUR 15.2 million (7.5). The operating
profit margin rose to 6.5% from 3.3% last year. Costs decreased by some EUR 18
million in January-March 2010 compared to the corresponding period in 2009.
In January 2010, Metso and Kemira entered into a three-year research and
development partnership agreement, by which Kemira will handle the chemical
control of Metso's pilot paper machines. The aim is to combine Metso's leading
competence in paper and board machine processes, automation and technology with
Kemira's know-how in water and fiber chemistry to produce optimal overall
solutions for pulp and paper industry customers.
Municipal & Industrial
We offer water treatment chemicals for municipalities and industrial customers.
Our strengths are high-level application know-how, a comprehensive range of
water treatment chemicals, and reliable customer deliveries.
EUR million 1-3/2010 1-3/2009 1-12/2009
--------------------------------------------------------------------------------
Revenue 148.4 150.7 607.5
EBITDA 20.6 16.4 91.7
EBITDA % 13.9 10.9 15.1
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 16.7 10.4 66.4
Operating profit 14.6 10.4 59.8
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items, % 11.3 6.9 10.9
Operating profit, % 9.8 6.9 9.8
--------------------------------------------------------------------------------
Capital employed* 346.9 356.1 349.4
ROCE, %* 18.5 2.5 17.1
--------------------------------------------------------------------------------
Capital expenditure, excluding acquisitions 3.7 2.1 21.0
Cash flow after investments, excluding interest and
taxes 12.6 8.2 93.5
*12-month rolling average
The Municipal & Industrial segment's revenue in January-March was EUR 148.4
million (150.7). Delivery volumes were higher than in January-March 2009, but
average sales prices decreased as a result of a drop in raw material prices in
2009. The currency exchange effects had a EUR 3 million positive impact on
revenue.
Healthy demand continued in the municipal water treatment business, and delivery
volumes were higher than a year earlier. Also in the industrial water treatment
business, volumes increased even though capacity utilization was still at a low
level in many customer industries.
Despite a drop in average prices, operating profit excluding non-recurring items
rose to EUR 16.7 million (10.4). The operating profit margin rose to 11.3% from
6.9 % last year (excluding non-recurring items). Costs decreased by some EUR 14
million in January-March 2010 compared to the corresponding period in 2009.
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 1-3/2010 1-3/2009 1-12/2009
--------------------------------------------------------------------------------
Revenue 66.6 54.4 235.0
EBITDA 8.7 4.5 23.6
EBITDA % 13.1 8.3 10.1
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 6.4 2.0 14.2
Operating profit 6.4 2.0 19.9
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items, % 9.6 3.7 6.0
Operating profit, % 9.6 3.7 8.5
--------------------------------------------------------------------------------
Capital employed* 141.7 162.6 148.9
ROCE, %* 17.2 0.1 13.4
--------------------------------------------------------------------------------
Capital expenditure, excluding acquisitions 1.2 0.6 4.7
Cash flow after investments, excluding interest and
taxes 7.9 -7.4 20.8
*12-month rolling average
The Oil & Mining segment's revenue in January-March 2010 rose 22% to EUR 66.6
million (54.4). Overall sales volumes rose from the corresponding period in
2009.
As the prices of oil and gas increased, chemical demand in oil and gas
industries recovered from the corresponding period last year. In the mining
industry, the demand for chemicals by metal industry customers started to
strengthen towards the end of 2009 as metal demand and prices rose.
Operating profit for January-March was EUR 6.4 million (2.0). The operating
profit margin rose to 9.6% from 3.7% last year. Operating profit increased due
to higher sales volumes and lower costs. Costs decreased by some EUR 4 million
compared to the corresponding period in 2009.
In January 2010, Kemira reversed the decision to shut down the polymer
manufacturing site in Columbus Georgia USA as the demand for water treatment
chemicals in the oil and gas industries is expected to increase. Previously the
site was primarily serving customers in the paper industry. The operations at
the site have now been retooled to offer a tailored product mix to meet the
needs of customers in the oil and gas industry.
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 CEO Office).
The demand of specialty chemicals was at a good level in the Other segment.
Products are delivered for instance to the food industry, feed industry and
pharmaceutical industry, as well as for airport runway de-icing.
Separation of Tikkurila
Trading with Tikkurila Oyj's share began on NASDAQ OMX Helsinki Oy on March
26, 2010 and Tikkurila was separated from Kemira Oyj.
On March 16, 2010 Kemira's Annual General Meeting decided that each four
Kemira's shares entitle their holder to receive one share of Tikkurila as a
dividend. Kemira distributed a total of 37,933,097 Tikkurila shares as dividend
to its shareholders which corresponds with 86% of Tikkurila's shares and votes.
Kemira held a 14% minority share in Tikkurila. The dividend decision is
described in more detail under "AGM decisions".
The taxable value and purchase price for the Tikkurila shares distributed as
dividend is the volume-weighted average of the prices paid for Tikkurila's share
during the first trading day, March 26, 2010, i.e. EUR 15.80.
Kemira Oyj's shares and shareholders
On March 31, 2010, Kemira Oyj's share capital was EUR 221.8 million and the
number of shares was 155,342,557. At the end of March, Kemira owned 3,610,171
own shares (December 31, 2009: 3,854,771), which corresponds with 2.3% (December
31, 2009: 2.5%) of all Kemira Oyj's shares. Based on the Board of Directors'
decision, Kemira Oyj transferred shares to the persons involved in the 2009
share ownership plans on March 3, 2010 and the number of shares owned by the
company decreased by 244,600 shares. In connection with this, the company also
acquired 1,385 shares from the market which were assigned based on the share
ownership plan.
The highest share price of Kemira Oyj's shares on NASDAQ OMX Helsinki Oy in
January-March was EUR 13.19 and the lowest was EUR 7.98. The average share price
was EUR 10.80. The company's market value less the shares held by Kemira was EUR
1,200.2 at the end of March.
AGM decisions
On March 16, 2010, the AGM reelected members Elizabeth Armstrong, Wolfgang
Büchele, Juha Laaksonen, Pekka Paasikivi, Kaija Pehu-Lehtonen and Jukka Viinanen
to the Board of Directors and elected Kerttu Tuomas as a new member. Pekka
Paasikivi was elected to continue as the Chairman of the Board and Jukka
Viinanen was elected as Vice Chairman.
Dividend payment
A. Dividend paid in Tikkurila Oyj's shares
The Annual General Meeting decided that a dividend on the basis of the adopted
balance sheet for the financial year ended December 31, 2009 was paid as
follows:
Each four Kemira's shares entitled their holder to receive one share of
Tikkurila Oyj as a dividend. The number of shares of Tikkurila that a
shareholder was entitled to receive was calculated on a book-entry account
basis. Kemira distributed to its shareholders as dividend a total of 37,933,097
shares of Tikkurila, which represents 86 % of the shares in Tikkurila and the
number of voting rights carried by them. The record date was March 19, 2010 and
the dividend was paid on March 26, 2010.
Fractional entitlements to Tikkurila's share resulting from the distribution
ratio of the shares were not distributed but the amount corresponding to the
fractional entitlements was compensated for in cash. The amount of the cash
payment corresponding to the fractional entitlements was based on the taxable
value of the dividend paid in Tikkurila's shares, EUR 15.80, which was the
volume-weighted average of the prices paid for Tikkurila's
share during the first trading day, March 26, 2010. The fractional entitlements
to Tikkurila's share were combined to complete shares and sold on the first
trading day. The cash payment corresponding to the fractional entitlements was
paid, on a book-entry account basis, to the shareholders entitled to fractional
entitlements on March 30, 2010.
B. Cash dividend
The Annual General Meeting authorized the Board to decide upon a dividend
payable in cash on the basis of the adopted balance sheet for the financial year
ended December 31, 2009 under the following terms and conditions:
Under the authorization, the Board of Directors may decide upon a dividend
payable in cash of a maximum of 0.27 euro per share.
The Board of Directors will decide upon the other terms related to the dividend
payable in cash in accordance with the Rules of the Helsinki Stock Exchange and
Euroclear Finland Ltd. The authorization to decide upon a dividend payable in
cash is valid until May 31, 2010.
Remuneration of the Chairman, the Vice Chairman and the members of the Board of
Directors
The Annual General Meeting decided that the remuneration paid to the members of
the Board of Directors will remain unchanged but the monthly fee will be changed
into an annual fee. The fees are as follows: the Chairman will receive 66.000
euro per year, the Vice Chairman 42.000 euro per year and the other members
33.600 euro per year. A fee payable for each meeting of the Board and its
committees is for the members residing in Finland 600 euro, the members residing
in rest of Europe 1.200 euro and the members residing outside Europe 2.400 euro.
Travel expenses are paid according to Kemira's travel policy.
In addition, the Annual General Meeting decided that the annual fee be paid as a
combination of the company's shares and cash in such a manner that 40% of the
annual fee is paid with the company's shares owned by the company or, if this is
not possible, shares purchased from the market, and 60% is paid in cash. The
shares will be transferred to the members of the Board of Directors and, if
necessary, acquired directly on behalf of the members of the Board of Directors
within two weeks from the release of Kemira's interim report January 1 - March
31, 2010.
The meeting fees are to be paid in cash.
Election and remuneration of the auditor
KPMG Oy Ab was elected as the Company's auditor KHT Pekka Pajamo acting as the
principal auditor. The Auditor's fees will be paid against an invoice approved
by Kemira.
Authorization to decide on the repurchase of the Company's own shares
The Annual General Meeting authorized the Board of Directors to decide upon
repurchase of a maximum of 4,156,957 Company's own shares ("Share repurchase
authorization"). Shares will be repurchased by using unrestricted equity either
through a tender offer with equal terms to all shareholders at a price
determined by the Board of Directors or otherwise than in proportion to the
existing shareholdings of the Company's shareholders in public trading on the
Helsinki Stock Exchange at the market price quoted at the time of the
repurchase. Shares shall be acquired and paid for in accordance with the Rules
of the Helsinki Stock Exchange and Euroclear Finland Ltd.
The price paid for the shares repurchased through a tender offer under the
authorization shall be based on the market price of the company's shares in
public trading. The minimum price to be paid would be the lowest market price of
the share quoted in public trading during the authorization period and the
maximum price the highest market price quoted during the authorization period.
Shares may be repurchased to be used in implementing or financing mergers and
acquisitions, developing the Company's capital structure, improving the
liquidity of the Company's shares or to be used for the payment of the annual
fee payable to the members of the Board of Directors or implementing the
Company's share-based
incentive plans. In order to realize the aforementioned purposes, the shares
acquired may be retained, transferred further or cancelled by the Company.
The Board of Directors will decide upon other terms related to share repurchase.
The Share repurchase authorization is valid until the end of the next Annual
General Meeting.
Authorization to decide on share issues
The Annual General Meeting authorized the Board of Directors to decide to issue
a maximum of 15,534,256 new shares and/or transfer a maximum of 7,767,128
Company's own shares held by the Company ("Share issue authorization"). The new
shares may be issued and the Company's own shares held by the Company may be
transferred either for consideration or without consideration.
The new shares may be issued and the Company's own shares held by the Company
may be transferred to the Company's shareholders in proportion to their current
shareholdings in the Company, or by disapplying the shareholders' pre-emption
right, through a directed share issue, if the Company has a weighty financial
reason to do so, such as financing or implementing mergers and acquisitions,
developing the capital structure of the Company, improving the liquidity of the
Company's shares or if this is justified for the payment of the annual fee
payable to the members of the Board of Directors or implementing the Company's
share-based incentive plans. The directed share issue may be carried out without
consideration only in connection with the payment of the annual fee payable to
the members of the Board of Directors or implementation of the Company's
share-based incentive plan.
The subscription price of new shares shall be recorded to the invested
unrestricted equity reserves. The consideration payable for Company's own shares
shall be recorded to the invested unrestricted equity reserves.
The Board of Directors will decide upon other terms related to the share issues.
The Share issue authorization is valid until the end of the next Annual General
Meeting.
Donation to the Aalto University Foundation
The Annual General Meeting approved a donation in the amount of 500.000 euro to
the Aalto University Foundation to be used for the Aalto University Foundation's
basic capital.
Other events during the review period
In a Board meeting held on March 16, 2010, Kemira Oyj's Board of Directors
elected members from among themselves for the Audit Committee and the
Compensation Committee. The Board's Audit Committee members are Juha Laaksonen,
Kaija Pehu-Lehtonen and Jukka Viinanen. The Audit Committee is chaired by Juha
Laaksonen. The Board's Compensation Committee members are Pekka Paasikivi,
Kerttu Tuomas and Jukka Viinanen. The Compensation Committee is chaired by Pekka
Paasikivi. In addition, the Board decided to assemble a Nomination Committee
which will consist of the representatives of the four largest shareholders as of
May 31, 2010, the Chairman of the Board of Directors acting as an expert member.
The Nomination Committee is to prepare a proposal for the next Annual General
Meeting concerning the composition and remuneration of the Board of Directors.
Leena Lie, Vice President, Communications of Kemira Oyj was appointed Vice
President, Marketing and Communications and member of the Strategic Management
Board of Kemira as of March 24, 2010. This is a substitute position for
maternity leave.
Short-term risks and uncertainties
Kemira's main short-term risks and uncertainties are connected to raw material
availability and prices.
Substantial fluctuations in the world market prices of electricity and oil are
reflected in Kemira's financial results, via raw material prices and logistics
costs.
Capacity cuts among raw material suppliers may affect Kemira's production costs.
As a result of general economic development some of our cooperation partners,
for instance logistics companies, may face difficulties, which in turn may have
a temporary effect on Kemira's operations.
Introduction of REACH legislation may decrease the available raw material
options and thus increase Kemira's raw material costs. REACH registration of
Kemira's own products may also be more expensive than estimated, in particular
if Kemira is not able to divide the costs with other companies. Acrylamide,
which Kemira uses as a raw material for polymers, has been added to the list of
candidates for authorization under REACH. If acrylamide was added to the list
of substances subject to authorization under REACH, this would make its use more
difficult.
Changes in the exchange rates of key currencies can affect Kemira's financials.
A detailed account of Kemira's risk management principles and organization is
available at the company website at www.kemira.com. An account of financial
risks is available in the Notes to the Financial Statements 2009. Environmental
and hazard risks are discussed in Kemira's environmental report.
Outlook
Kemira's goal is to be a leading water chemistry company. Implementation of
Kemira's water strategy has progressed well and the company has improved its
profitability significantly and strengthened the balance sheet with several
measures. Kemira will continue to focus on improving profitability and
reinforcing positive cash flow, but the company will also increase its actions
to boost growth.
The basis for growth is the expanding water chemicals markets and Kemira's
strong know-how in water quality and quantity management. Increasing water
shortage, tightening legislation and customers' needs to increase operational
efficiency create opportunities for Kemira to develop new water applications for
both new and current customers. Investment in research and development is a
central part of Kemira's strategy. The focus of Kemira's R&D activities is on
the development and commercialization of new innovative technologies both
globally and locally.
The global cost savings program started in 2008 has proceeded faster than
planned and it will be completed by the end of the year. The full annual impact
is expected to be felt from 2011 onwards.
In 2010, Kemira expects demand to develop favorably as the economic situation
improves, even though there's still uncertainty with the development of the
demand. In the second quarter, Kemira's operating profit excluding non-recurring
items is expected to increase from the corresponding period in 2009 (continuing
operations). In April-June 2009, operating profit excluding non-recurring items
was EUR 29.3 million.
Helsinki, April 28, 2010
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 such statements contain.
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, 2010:
- IFRS 3 Business Combinations - The standard change had no effect on the
interim consolidated financial statement.
- IAS 27 Consolidated and Separete Financial Statements (amended 2008) - The
standard change had no effect on the interim consolidated financial statement.
- IFRIC 17 Distributions of non-cash assets to owners - New interpretation has
been followed in separation of Tikkurila Oyj.
The changes have been described in annual financial statement 2009.
INCOME STATEMENT 1-3/2010 1-3/2009 2009
EUR million
Continuing operations
Revenue 514.7 497.5 1,969.9
Other operating income 3.0 3.1 22.4
Expenses -454.9 -452.0 -1,785.1
Depreciation, impairments and reversals of
impairments -24.4 -24.5 -97.5
Operating profit 38.4 24.1 109.7
Financial income and expenses, net -7.9 -12.3 -37.8
Share of profit or loss of
associates 1.2 -3.8 -4.8
Group contribution - - 9.4
Profit before tax 31.7 8.0 76.5
Income tax -4.0 -1.3 -9.4
Net profit for the period 27.7 6.7 67.1
Discontinued operations
Net profit for the period, discontinued operations 531.0 -0.6 18.4
Net profit for the period 558.7 6.1 85.5
Attributable to:
Equity holders of the parent 26.8 6.3 63.4
Minority interest 0.9 0.4 3.7
Net profit for the period 27.7 6.7 67.1
Earnings per share, continuing operations
basic and diluted, EUR 0.18 0.05 0.47
Earnings per share, basic and diluted, EUR 3.68 0.50 0.61
STATEMENT OF COMPREHENSIVE INCOME 1-3/2010 1-3/2009 2009
Net profit for the period 558.7 6.1 85.5
Other comprehensive income, net of tax:
Available-for-sale - change in fair value -3.5 - 3.7
Exchange differences 37.0 -7.9 28.1
Hedge of net investment in foreign entities -4.5 -0.8 -3.0
Cash flow hedging -1.7 -2.6 10.0
Other changes -0.7 -0.5 -0.4
Other comprehensive income, net of tax 26.6 -11.8 38.4
Total comprehensive income 585.3 -5.7 123.9
Attributable to:
Equity holders of the parent 583.3 -5.3 119.9
Minority interest 2.0 -0.4 4.0
Total comprehensive income 585.3 -5.7 123.9
BALANCE SHEET
EUR million
ASSETS 31.3.2010 31.12.2009 *
Non-current assets
Goodwill 598.6 658.0
Other intangible assets 68.8 102.2
Property, plant and equipment 660.8 761.5
Holdings in associates 131.6 131.1
Available-for-sale investments 259.5 166.2
Deferred tax assets 18.2 18.8
Other investments 10.5 13.2
Defined benefit pension receivables 35.3 35.3
Total non-current assets 1,783.3 1,886.3
Current assets
Inventories 180.7 246.5
Interest-bearing receivables 0.6 1.4
Accounts receivables and other receivables 358.5 400.6
Current tax asset 8.9 7.3
Money market investments 87.3 202.1
Cash and cash equivalents 85.4 72.5
Total receivables 721.4 930.4
Total assets 2,504.7 2,816.7
31.3.2010 31.12.2009 *
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent 1,234.0 1,249.5
Minority interest 21.5 19.3
Total equity 1,255.5 1,268.8
Non-current liabilities
Interest-bearing non-current liabilities 537.3 512.6
Deferred tax liabilities 81.7 90.1
Pension liabilities 57.4 70.4
Provisions 55.8 55.6
Total non-current liabilities 732.2 728.7
Current liabilities
Interest-bearing current liabilities 166.0 437.6
Interest-free current liabilities 339.9 369.1
Current tax liabilities - 0.5
Provisions 11.1 12.0
Total current liabilities 517.0 819.2
Total liabilities 1,249.2 1,547.9
Total equity and liabilities 2,504.7 2,816.7
* Includes Tikkurila
CONSOLIDATED CASH FLOW STATEMENT 1-3/2010 1-3/2009 2009
EUR million
Includes Tikkurila until March
25, 2010
Cash flow from operating
activities
Profit for the period 557.8 5.7 81.8
Total adjustments -486.3 48.5 206.9
71.5 54.2 288.7
Change in net working capital -30.1 -63.3 74.4
41.4 -9.1 363.1
Financing items -16.5 -6.9 -49.0
Taxes paid -5.4 -6.1 -26.3
Total cash flow from operating
activities 19.5 -22.1 287.8
Cash flow from investing
activities
Capital expenditure for
acquisitions - - -3.7
Other capital expenditure -16.1 -12.7 -82.2
Proceeds from sale of assets * -18.9 0.4 2.4
Change in other investments * 148.2 - -2.1
Cash flow after investing
activities 113.2 -12.3 -85.6
Cash flow before financing
activities 132.7 -34.4 202.2
Cash flow from financing
activities
Proceeds from non-current
interest-bearing liabilities 45.2 52.3 228.3
Repayments from non-current
interest-bearing liabilities -11.3 7.9 -249.7
Short-term financing, net
(increase +, decrease -) -230.7 -13.1 -183.6
Dividends paid - - -33.5
Share issue - - 200.0
Other financing items -42.1 -7.0 -11.3
Net cash used in financing
activities -238.9 40.1 -49.8
Net change in cash and cash
equivalents -106.2 5.7 152.4
Cash and cash equivalents at end
of period 172.7 125.4 274.6
Exchange gains (+) / losses (-) on cash
and cash equivalents -4.3 -0.3 -2.8
Cash and cash equivalents at
beginning of period 274.6 119.4 119.4
Net change in cash and cash
equivalents -106.2 5.7 152.4
* 1-3/2010 include cash and cash equivalents transferred to Tikkurila as
well as the loan repayment from Tikkurila
STATEMENT OF CHANGES IN EQUITY
EUR million
Equity attributable to equity holders of the parent
Capital Un-
paid-in in Fair value restricted
Share excess of and other equity
capital par value reserves reserve
Shareholders' equity at
January 1, 2009 221.8 257.9 81.4 -
Net profit for the period - - - -
Other comprehensive income,
net of tax - - -2.7 -
Total comprehensive income - - -2.7 -
Share-based compensations - - - -
Shareholders' equity at
March 31, 2009 221.8 257.9 78.7 -
Shareholders' equity at
January 1, 2010 221.8 257.9 95.8 196.3
Net profit for the period - - - -
Other comprehensive income,
net of tax - - -5.4 -
Total comprehensive income - - -5.4 -
Dividends paid - - - -
Treasury shares issued to
target group
of share-based incentive
plan - - - -
Share-based compensations - - - -
Changes due to business
combinations - - - -
Shareholders' equity at
March 31, 2010 221.8 257.9 90.4 196.3
Equity attributable to
equity holders of the parent
Exchange Treasury Retained
differences shares earnings
Shareholders' equity at
January 1, 2009 -104.6 -25.9 532.2
Net profit for the period - - 5.7
Other comprehensive income,
net of tax -8.0 - -0.3
Total comprehensive income -8.0 - 5.4
Share-based compensations - - 0.2
Shareholders' equity at March
31, 2009 -112.6 -25.9 537.8
Shareholders' equity at
January 1, 2010 -79.9 -25.9 583.6Net profit for the period - - 557.9
Other comprehensive income,
net of tax 31.2 - -0.3
Total comprehensive income 31.2 - 557.6
Dividends paid - - -599.3
Treasury shares issued to
target group
of share-based incentive
plan - 1.6 -
Share-based compensations - - -1.0
Changes due to business
combinations - - -0.2
Shareholders' equity at March
31, 2010 -48.7 -24.3 540.7
Minority
interests Total
Shareholders' equity at January 1, 2009 13.2 976.0
Net profit for the period 0.4 6.1
Other comprehensive income, net of tax -0.8 -11.8
Total comprehensive income -0.4 -5.7
Share-based compensations - 0.2
Shareholders' equity at March 31, 2009 12.8 970.5
Shareholders' equity at January 1, 2010 19.2 1,268.8
Net profit for the period 0.8 558.7
Other comprehensive income, net of tax 1.2 26.7
Total comprehensive income 2.0 585.4
Dividends paid - -599.3
Treasury shares issued to target group
of share-based incentive plan - 1.6
Share-based compensations - -1.0
Changes due to business combinations 0.2 0.0
Shareholders' equity at March 31, 2010 21.4 1,255.5
Kemira had in its possession 3,610,171 of its treasury shares on March
31, 2010. The average share price of treasury shares was EUR 6.73 and they
represented 2.3% of the share capital and the aggregate number of votes
conferred by all shares. The aggregate par value of the treasury shares is EUR
5.2 million.
The capital paid-in in excess of par value is a reserve accumulating through
subscriptions entitled by the Management stock option program 2001 and is based
on the Finnish Companies Act (734/1978), which does no longer change. According
to IFRS, the Fair Value reserve is a reserve accumulating based on
available-for-sale financial assets (shares) measured at fair value and hedge
accounting. Other reserves are required by local legislation. The unrestricted
equity reserve includes other equity type investments and the subscription price
of shares to the extent that it will not, based on a specific decision, be
recognized in share capital.
KEY FIGURES 1-3/2010 1-3/2009 2009
Earnings per share, continuing operations,
basic and diluted, EUR ** 0.18 0.05 0.47
Earnings per share, discontinued operations,
basic and diluted, EUR ** 3.50 0.00 0.14
Cash flow from operations per share, EUR ** 0.13 -0.18 2.13
Capital expenditure, EUR million 16.1 12.7 85.9
Capital expenditure / revenue, % 3.1 2.1 3.4
Average number of shares (1000),
basic * 151,569 121,190 134,824
Average number of shares (1000),
diluted * 151,742 121,190 135,085
Number of shares at end
of period (1000), basic * 151,732 121,190 151,488
Number of shares at end of
period (1000), diluted * 151,732 121,190 151,748
Equity per share, attributable to
equity holders of the parent, EUR 8.13 7.90 8.25
Equity ratio, % 50.2 34.4 45.1
Gearing, % 42.3 112.8 53.2
Interest-bearing net liabilities, EUR million 530.7 1,095.0 675.6Personnel (average) 7,398 8,987 8,843
* Number of shares outstanding, excluding the number of shares bought back.
** Rights offering restatement year 2009
REVENUE BY BUSINESS AREA 1-3/2010 1-3/2009 2009
EUR million
Paper external 234.0 223.9 905.2
Paper Intra-Group - 1.1 1.2
Municipal & Industrial external 148.4 150.7 607.3
Municipal & Industrial Intra-Group - - 0.2
Oil & Mining external 66.6 57.0 234.4
Oil & Mining Intra-Group - -2.6 0.6
Other external 65.7 65.9 223.0
Other Intra-Group 0.1 19.3 77.4
Eliminations -0.1 -17.8 -79.4
Total, continuing operations 514.7 497.5 1,969.9
Tikkurila, external, discontinued operations 108.2 111.2 530.2
Total 622.9 608.7 2,500.1
OPERATING PROFIT BY BUSINESS AREA 1-3/2010 1-3/2009 2009
EUR million
Paper 15.2 7.5 40.1
Municipal & Industrial 14.6 10.4 59.8
Oil & Mining 6.4 2.0 19.9
Other 2.2 4.2 -10.1
Eliminations - - -
Total, continuing operations 38.4 24.1 109.7
Tikkurila, discontinued operations 5.3 4.0 47.7
Total 43.7 28.1 157.4
CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1-3/2010 1-3/2009 2009
EUR million
Carrying amount at beginning of year 761.5 765.7 765.7
Acquisitions of subsidiaries - - 0.1
Increases 12.9 11.2 76.1
Decreases -0.2 -0.5 -2.0
Disposal of subsidiaries -115.9 - -
Depreciation, impairments
and reversals of impairments -23.7 -23.5 -88.9
Exchange rate differences and
other changes 26.2 4.5 10.5
Net carrying amount at end of period 660.8 757.4 761.5
CHANGES IN INTANGIBLE ASSETS 1-3/2010 1-3/2009 2009
EUR million
Carrying amount at beginning of year 760.2 766.7 766.7
Acquisitions of subsidiaries - - 2.4
Increases 3.3 1.5 11.6
Decreases - - -0.1
Disposal of subsidiaries -101.3 - -
Depreciation and impairments -5.4 -5.5 -27.6
Exchange rate differences and
other changes 10.6 4.7 7.2
Net carrying amount at end of period 667.4 767.4 760.2
CONTINGENT LIABILITIES 31.3.2010 31.12.2009
EUR million
Mortgages 13.9 37.5
Assets pledged
On behalf of own commitments 5.8 5.5
Guarantees
On behalf of own commitments 43.4 45.2
On behalf of associates 1.0 1.0
On behalf of others 9.4 9.2
Operating leasing liabilities
Maturity within one year 21.5 26.0
Maturity after one year 131.9 137.3
Other obligations
On behalf of own commitments 0.9 1.7
On behalf of associates 1.7 1.8
Major off-balance sheet investment commitments
There were no major contractual commitments for the acquisition of property,
plant and equipment on March 31, 2010.
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. In its claim, Cartel Damage Claims
Hydrogen Peroxide SA seeks an order from the Regional Court of Dortmund in
Germany to obtain an unabridged and full copy of the decision of the European
Commission, dated May 3, 2006, and demands that the defendants, including
Kemira, are jointly and severally ordered to pay damages together with accrued
interest on the basis of such decision.
Cartel Damage Claims Hydrogen Peroxide SA states that it will specify the amount
of the damages at a later stage after the full copy of the decision of the
European Commission has been obtained by it. In order to provide initial
guidance as to the amount of such damages, Cartel Damage Claims Hydrogen
Peroxide SA presents in its claim a preliminary calculation of the alleged
overcharge having been paid to the defendants as a result of the violation of
the applicable competition rules by the parties which have assigned and sold
their claim to Cartel Damage Claims Hydrogen Peroxide SA. Such alleged
overcharge, together with accrued interest until December 31, 2008, is stated to
be approximately EUR 641.3 million. The process is currently pending in the
Regional Court of Dortmund, Germany, and Kemira's response to the claim of
Cartel Damage Claims Hydrogen Peroxide SA is due to be submitted until the end
of April 2010.
Kemira intends to defend vigorously against the claim of Cartel Damage Claims
Hydrogen Peroxide SA. However, Kemira is currently not in a position to make any
estimate regarding the duration or the likely outcome of the process. No
assurance can be given as to the outcome of the process, and an unfavorable
judgment against Kemira could have a material adverse effect on Kemira's
business, financial condition or results of operations. 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 2009.
DERIVATIVE INSTRUMENTS
EUR million
31.3.2010 31.12.2009
Nominal Fair Nominal Fair
value value value value
Currency instruments
Forward contracts 498.2 2.8 549.5 1.5
of which hedges of
net investment in a foreign operation - - - -
Currency options
Bought 18.4 -0.1 - -
Sold 19.9 0.1 - -
Currency swaps - - 29.3 -3.9
Interest rate instruments
Interest rate swaps 340.1 -8.9 354.7 -9.4
of which cash flow hedge 292.7 -6.9 307.8 -7.4
Interest rate options
Bought 10.0 - 10.0 -
Sold - - - -
Bond futures 10.0 - 10.0 0.2
of which open 10.0 - 10.0 0.2
Other instruments
Fair Fair
GWh value GWh value
Electricity forward contracts, bought 1,359.8 -0.7 1,156.7 1.2
of which cash flow hedge 1,062.0 -0.7 1,051.6 1.1
Electricity forward contracts, sold 297.8 0.1 - -
of which cash flow hedge - - - -
Fair Fair
K tons value K tons value
Natural gas hedging 9.6 -0.2 14.8 -0.2
of which cash flow hedge 9.6 -0.2 14.8 -0.2
Salt derivatives 160.0 - 160.0 -
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.
QUARTERLY INFORMATION 2010 2009 2009 2009 2009
EUR million Q1 Q4 Q3 Q2 Q1
Continuing operations
Revenue
Paper external 234.0 229.2 229.9 222.2 223.9
Paper Intra-Group - 0.4 0.3 -0.6 1.1
Municipal & Industrial external 148.4 140.6 155.6 160.4 150.7
Municipal & Industrial Intra-Group - - -0.1 0.3 -
Oil & Mining external 66.6 69.2 55.9 52.3 57.0
Oil & Mining Intra-Group - 0.2 0.1 2.9 -2.6
Other external 65.7 57.2 46.3 53.6 65.9
Other Intra-Group 0.1 20.6 19.4 18.1 19.3
Eliminations -0.1 -21.2 -19.7 -20.7 -17.8
Total 514.7 496.2 487.7 488.5 497.5
Operating profit
Paper 15.2 9.8 14.8 8.0 7.5
Municipal & Industrial 14.6 6.3 24.9 18.2 10.4
Oil & Mining 6.4 11.2 3.5 3.2 2.0
Other 2.2 -10.0 -4.2 -0.1 4.2
Eliminations - - - - -
Total 38.4 17.3 39.0 29.3 24.1
Operating profit, excluding non-recurring items
Paper 15.2 14.6 14.8 8.0 7.5
Municipal & Industrial 16.7 12.9 24.9 18.2 10.4
Oil & Mining 6.4 5.5 3.5 3.2 2.0
Other 0.8 -0.5 -4.2 -0.1 4.2
Eliminations - - - - -
Total 39.1 32.5 39.0 29.3 24.1
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
DISCONTINUED OPERATIONS
Trading with Tikkurila Oyj's share began on NASDAQ OMX Helsinki Oy on March
26, 2010 and Tikkurila was separated from Kemira Oyj. Tikkurila comprised own
segment in Kemira.
On March 16, 2010 Kemira's Annual General Meeting decided that each four
Kemira's shares entitle their holder to receive one share of Tikkurila as a
dividend. Kemira distributed a total of 37,933,097 Tikkurila shares as dividend
to its shareholders which corresponds with 86% of Tikkurila's shares and votes.
Kemira held a 14% minority share in Tikkurila.
INCOME STATEMENT 1.1.- 25.3.2010 1.1. - 31.12.2009
EUR million
Revenue 108.2 530.2
Other operating income 0.4 1.5
Expenses -98.6 -465.2
Depreciation, impairments and reversals of -4.7 -18.8
impairments
Operating profit 5.3 47.7
Financial income and -1.6 -12.0
expenses, net
Share of profit or loss of - 0.1
associates
Group contribution - -9.4
Profit before tax 3.7 26.4
Income tax -1.9 -8.0
Net profit for the period 1.8 18.4
Profit for Tikkurila spin off 529.2
Net profit for the period, discontinued operations 531.0
Attributable to, discontinued operations:
Equity holders of the parent 1.8
Minority interest 0.0
Net profit for the period 1.8
Earnings per share, discontinued operations,
basic and diluted, EUR 3.50 0.14
Cash flow of Tikkurila segment
Cash flow from operating activities -29.0 62.5
Cash flow from investing activities -1.9 -17.1
Cash flow from financing activities 24.9 -53.1
Net change in cash and cash equivalents -6.0 -7.7
The effect of paying Tikkurila as dividend on Group's financial
position
25.3.2010 31.12.2009
Non-current assets 230.0 224.6
Receivables 222.1 178.5
Non-current liabilities -164.0 -140.6
Current liabilities -132.6 -118.6
Assets and liabilities, net 155.5 143.9
Expenses paid in cash -0.1
Cash and cash equivalents of discontinued -19.2
operations
The effect on cash flow -19.3
[HUG#1409375]
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