2010-07-29 07:30:00 CEST
2010-07-29 07:31:49 CEST
REGULATED INFORMATION
Kemira Oyj - Interim report (Q1 and Q3)
Kemira Oyj's Interim Report January-June 2010: Marked recovery in demand compared to last year, significant increase in operating profit
Kemira Oyj
Stock Exchange Release
July 29, 2010 at 8.30 (CET+1)
January-June:
* Revenue in January-June 2010 increased by 7% to EUR 1,059.9 million
(January-June 2009: EUR 986.0 million).
* Operating profit excluding non-recurring items rose 49% to EUR 79.6 million
(53.4). Operating profit rose 55% to EUR 82.9 million (53.4).
* Gearing was 48% (December 31, 2009: 53%).
* Profit before taxes improved by 140% to EUR 69.0 million (28.8)
* Earnings per share from continuing operations was EUR 0.35 (0.16).
* During the current year, Kemira expects the demand to develop favorably as
our customer demand is getting stronger. Operating profit from continuing
operations, excluding non-recurring items, is estimated to grow notably from
last year (2009: EUR 124.9 million).
* Tikkurila Oyj was separated from Kemira on March 26, 2010 and is reported
under Discontinued operations (see tables).
Second quarter:
* Revenue in April -June 2010 rose 12% to EUR 545.2 million (April-June 2009:
EUR 488.5 million).
* Operating profit excluding non-recurring items rose 38% to EUR 40.5 million
(29.3).
* Operating profit percentage excluding non-recurring items was 7.4% (6.0%).
* Operating profit rose 52% to EUR 44.5 million (29.3).
* Profit before taxes totalled EUR 37.3 million (20.8).
* Earnings per share from continuing operations was EUR 0.17 (0.11).
Kemira's President and CEO Harri Kerminen:
The recovery in demand which started at the end of the first quarter also
continued in the second quarter. The 12% growth in revenue compared to the
second quarter last year is a reflection of increased deliveries to our customer
industries. The revenues of Oil & Mining and Paper segments rose over 10 %. The
revenue of the Municipal & Industrial segment developed positively as well,
especially regarding deliveries to Industrial customers.
The operating profit excl. non-recurring items in continuing operations improved
in the second quarter by 38%. In addition to higher sales volumes, the result
was boosted by lower costs. Operating profit as a share of revenue rose to 7.4%
from 6.0% the previous year. Profit before tax was markedly better than last
year.
We will continue to develop the company according to our strategy, focusing on
water chemistry. As a part of this work, we announced the divestments of two
non-water related Paper segment units. The globally growing water business
offers Kemira opportunities to expand the utilisation of our current
competencies in the water treatment sector. Furthermore, the cooperation with
customers and research centers provides a strong basis for the profitable growth
of Kemira.
Key Figures and Ratios
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. It is reported under Discontinued operations (see
tables).
EUR million 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
--------------------------------------------------------------------------------
Revenue 545.2 488.5 1,059.9 986.0 1,969.9
EBITDA 68.3 55.4 131.1 104.0 207.2
EBITDA, % 12.5 11.3 12.4 10.6 10.5
--------------------------------------------------------------------------------
Operating profit, excluding 40.5 29.3 79.6 53.4 124.9
non-recurring items
Operating profit 44.5 29.3 82.9 53.4 109.7
--------------------------------------------------------------------------------
Operating profit, excluding 7.4 6.0 7.5 5.4 6.3
non-recurring items, %
Operating profit, % 8.2 6.0 7.8 5.4 5.6
--------------------------------------------------------------------------------
Financial income and expenses -9.8 -7.3 -17.7 -19.6 -37.8
--------------------------------------------------------------------------------
Profit before tax 37.3 20.8 69.0 28.8 76.5
--------------------------------------------------------------------------------
Net profit from continuing 27.3 15.5 55.0 22.2 67.1
operations
--------------------------------------------------------------------------------
Net profit*** 27.3 29.5 586.0** 35.6** 85.5**
--------------------------------------------------------------------------------
EPS, EUR, from continuing 0.35 0.16
operations 0.17 0.11 0.47
--------------------------------------------------------------------------------
Capital employed * 1,631.7 1,722.6 1,631.7 1,722.6 1,659.3
ROCE %* 8.8 1.7 8.8 1.7 6.3
--------------------------------------------------------------------------------
Cash flow after investments 1.9 83.9** 134.6** 49.5** 202.2**
--------------------------------------------------------------------------------
Equity ratio, % at period-end 50** 35** 50** 35** 45**
--------------------------------------------------------------------------------
Gearing, % at period-end 48** 104** 48** 104** 53**
--------------------------------------------------------------------------------
Personnel at period-end 5,177 9,139** 5,177 9,139** 8,493**
--------------------------------------------------------------------------------
* 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 media today, July
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)20 7162 0077, code 871463, 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-September interim report on Thursday October
28, 2010 at 8:30 a.m.
Additional information:
CFO Jyrki Mäki-Kala
Tel: +358 40 534 1060
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 improve customers' energy, water and raw material
efficiency. Kemira's vision is to be a leading water chemistry company.
www.kemira.com
www.waterfootprintkemira.com
Financial Performance in April-June 2010
Kemira Group's revenue increased by 12% in April-June 2010 compared to the
corresponding period in 2009. April-June 2010 revenue was EUR 545.2 million
(April-June 2009: EUR 488.5 million). Demand continued to grow in April-June in
most customer industries. Sales prices decreased in some products as a result of
a drop in raw material prices seen in 2009. The exchange rate effect increased
revenue by about EUR 29 million.
Revenue, EUR million 4-6/2010 4-6/2009 1-12/2009
Paper 247.4 221.6 906.4
Municipal & Industrial 163.7 160.7 607.5
Oil & Mining 78.1 55.2 235.0
Other 56.0 71.7 300.4
Eliminations 0.0 -20.7 -79.4
Total 545.2 488.5 1,969.9
Operating profit rose 52% in April-June 2010 compared to the corresponding
period in 2009 and amounted to EUR 44.5 million (29.3). Operating profit
excluding non-recurring items, main items being the divestments of two non-water
related Paper segment units and a service company in Helsingborg, was EUR 40.5
million (29.3). Operating profit margin was 7.4% (6.0%). The operating profit
was boosted by the about EUR 13 million lower cost and higher sales volumes.
Fixed costs were at a higher level than last year, due to the negative effect of
the exchange rate fluctuations.
Operating profit, excluding non-recurring items,
EUR million
4-6/2010 4-6/2009 1-12/2009
Paper 18.3 8.0 44.9
Municipal & Industrial 15.6 18.2 66.4
Oil & Mining 6.9 3.2 14.2
Other -0.3 -0.1 -0.6
Eliminations 0.0 0.0 0.0
Total 40.5 29.3 124.9
The share of associates' results was EUR 2.6 million (-1.2).
Profit before tax in April-June amounted to EUR 37.3 million (20.8), and net
profit from continuing operations totalled EUR 27.3 million (15.5).
Earnings per share from continuing operations was EUR 0.17 (0.11).
Financial Performance in January-June 2010
Kemira Group's revenue of continuing operations increased by 7% in January-June
2010 compared to the corresponding period in 2009, due to the increase in demand
in most customer industries. January-June 2010 revenue was EUR 1,059.9 million
(January-June 2009: EUR 986.0 million). Sales volumes increased by about 10%.
The growth was strongest in the Oil & Mining and Paper segments. The exchange
rate effect increased revenue by about EUR 34 million. Sales prices decreased in
some products as a result of a drop in raw material prices seen in 2009.
Revenue, EUR million 1-6/2010 1-6/2009 1-12/2009
Paper 481.4 446.6 906.4
Municipal & Industrial 312.1 311.4 607.5
Oil & Mining 144.7 109.6 235.0
Other 121.8 156.9 300.4
Eliminations -0.1 -38.5 -79.4
Total 1,059.9 986.0 1,969.9
Operating profit in January-June 2010 amounted to EUR 82.9 million (53.4).
Operating profit excluding non-recurring items, main items being the divestments
of two non-water related Paper segment units and a service company in
Helsingborg, rose by 49% to EUR 79.6 million (53.4). The positive growth in the
sales volumes in the latter half of the period increased the operating profit
markedly. The costs decreased by about EUR 49 million in January-June 2010
compared to the corresponding period in 2009. The exchange rate effect on
operating profit was minor. Fixed costs were at the level of 2009, when
excluding the negative effect from exchange rate.
Operating profit, excluding non-recurring items,
EUR million
1-6/2010 1-6/2009 1-12/2009
Paper 33.5 15.5 44.9
Municipal & Industrial 32.3 28.6 66.4
Oil & Mining 13.3 5.2 14.2
Other 0.5 4.1 -0.6
Eliminations 0.0 0.0 0.0
Total 79.6 53.4 124.9
The share of associates' results was EUR 3.8 million (-5.0).
The January-June profit before tax was EUR 69.0 million (28.8). Net profit for
the period from continuing operations totalled EUR 55.0 million (22.2). Net
profit was EUR 586.0 million (35.6). This 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.
Financial position and cash flow
Cash flow from operating activities in January-June 2010 amounted to EUR 34.7
million (87.7). Cash flow includes Tikkurila until March 25, 2010. Compared to
last year, cash flow was adversely affected by the separation of Tikkurila in
the first quarter, as well as the increase of net working capital connected to
the growth of revenue. Cash flow after investments amounted to EUR 134.6 million
(49.5). Cash flow from investing activities includes the loan repayment from
Tikkurila as well a cash and cash equivalents transferred to Tikkurila, and the
effect of the transfer tax related to Tikkurila's listing, in total EUR 119.3.
The cash flow effect of expansion, improvement and maintenance investments was
EUR -31.2 million (-36.1). No acquisitions were carried out during the period.
Acquisitions amounted to EUR 3.7 million last year relating to Tikkurila.
At the end of the period the Group's net debt stood at EUR 611.0 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 54 million
and in addition, during the second quarter Kemira Oyj paid out EUR 41 million in
dividend.
At the end of the period, interest-bearing liabilities stood at EUR 723.6
million (December 31, 2009: 950.2). Fixed-rate loans accounted for 76% of total
interest-bearing loans (December 31, 2009: 70%). The average interest rate on
the Group's interest-bearing liabilities was 4.4% (5.7%). At the end of June,
the duration of the Group's interest-bearing loan portfolio was 18 months
(December 31, 2009: 19 months).
The unused amount of the EUR 500 million revolving credit facility that falls
due in 2012 was EUR 437 million at the end of the period. The total limit of the
revolving credit facility has been reduced from EUR 750 million to EUR 500
million. Short-term liabilities maturing in the next 12 months amounted to EUR
126.5 million, with commercial papers issued on the Finnish markets representing
EUR 4.9 million and repayments of long-term loans representing EUR 110.3
million. Cash and cash equivalents totalled EUR 112.6 million on June 30, 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 48% (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 45 million.
In January-June the Group's net financial expenses were EUR 17.7 million (19.6).
Net financial expenses decreased from the corresponding period in 2009, mainly
due to lower debt and lower market rate levels; at the same time they increased
due to the exchange rate effects.
Capital expenditure
Gross capital expenditure in January-June, excluding acquisitions, amounted to
EUR 34.7 million (36.1). Gross capital expenditure of continuing operations,
excluding acquisitions, totalled EUR 32.5 million (27.9). Expansion investments
represented around 24% of gross capital investments, improvement investments
around 40%, and maintenance investments around 36%. The depreciation of
continuing operations amounted to EUR 48.2 million (50.6). Cash flow from the
sale of assets in continuing operations was EUR 12.4 million (1.5) in
January-June.
Research and Development
In continuing operations, research and development expenditure in January-June
was EUR 20.4 million (19.9) i.e. 2.1% (2.1%) of all operating expenses.
In March Kemira and VTT announced the establishing of a large water research
center in Finland. The total cost of the research, which will be performed at
the centre, is estimated at EUR 120 million, including external funding. The
investments are allocated over a period of 4 years, resulting in further
investment activities in projects for piloting and proof of concept purposes.
The centre will employ approximately 200 persons annually.
At the beginning of the year, about one third of the projects forming the water
research program have been kicked off and new strategic partners (customers and
other technology suppliers) are joining the program. Kemira has tightened
cooperation with the University of Alberta (Canada). University of Alberta has
long researched effective extraction of oil from oil sands. The focus of the
cooperation will be on water treatment in particular.
In June, Kemira and Nanyang Technological University (Singapore) announced joint
a R&D cooperation, with the aim to enhance used water treatment and
purification. The goal of the 2-year project is to design a more efficient water
treatment process with lower energy consumption and waste volume. The
cooperation is part of a membrane research effort.
Human Resources
The number of Kemira Group employees at the end of the period was 5,177 (June
30, 2009: 9,139). The number of personnel declined mostly 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 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 247.4 221.6 481.4 446.6 906.4
EBITDA 33.0 20.9 60.5 40.7 87.0
EBITDA, % 13.3 9.4 12.6 9.1 9.6
Operating profit, 18.3 8.0 33.5 15.5 44.9
excluding non-recurring
items
Operating profit 21.0 8.0 36.2 15.5 40.1
Operating profit, 7.4 3.6 7.0 3.5 5.0
excluding non-recurring
items, %
Operating profit, % 8.5 3.6 7.5 3.5 4.4
Capital employed* 780.8 818.3 780.8 818.3 782.6
ROCE %* 7.8 -0.9 7.8 -0.9 5.1
Capital expenditure, 9.7 13.4
excluding acquisitions 17.9 18.5 37.8
Cash flow after
investments, excluding 11.8 25.2
interest and taxes 34.6 31.5 75.6
* 12-month rolling average
The Paper segment's revenue in April-June 2010 rose by 12% to EUR 247.4 million
(221.6). Strong pulp demand has kept the sales of pulp chemicals at a good
level. Demand for packaging board has picked up in particular in Asia and
Eastern Europe since the second half of last year, increasing chemical sales
into these regions. The demand for paper used in magazines and newspapers and
the number of printed advertising material has increased the demand for the
products. In some products, sales prices declined as a result of a drop in raw
material prices in 2009. The exchange rate effects had a EUR 16 million positive
impact on revenue.
Operating profit excluding non-recurring items for April-June was EUR 18.3
million (8.0). The operating profit margin rose to 7.4% from 3.6 % last year.
Costs decreased by some EUR 12 million in April-June compared to the
corresponding period in 2009.
In January-June the Paper segment's revenue increased by 8% to EUR 481.4 million
(446.6). The currency exchange effect had a positive impact on revenue of
approximately EUR 19 million. Operating profit excluding non-recurring items was
EUR 33.5 million (15.5). Operating profit as a share of revenue was 7.0% (3.5%).
Costs in January-June were about EUR 30 million lower than in January-June
2009. Exchange rates had no significant effect on the result.
During this period Kemira announced the divestments of two non-water related
Paper segment units.
Kemira sold the sulphuric acid plant in Kokkola to Boliden Kokkola Oy. The
business operations were transferred to Boliden Kokkola Oy on May 1, 2010.
Kemira continues chemical terminal operations in Kokkola including services to
Boliden. The transaction has no significant impact on Kemira's financial result.
Kemira and German Catec GmbH financially supported by Fengler Beteiligungs GmbH
have signed a contract, according to which Kemira sells its global Fluorescent
Whitening Agents to Catec. Fluorescent whitening agents improve the whiteness
and brightness of paper. The deal covers a production plant in Leverkusen, the
global sales network and the associated support functions. The business employs
about a 100 people, most of them in Germany. They will be transferred to Catec
at the end of the third quarter, when the transaction is to be closed. The
transaction has no significant impact on Kemira's financial result.
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 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 163.7 160.7 312.1 311.4 607.5
EBITDA 21.0 25.1 41.6 41.5 91.7
EBITDA, % 12.8 15.6 13.3 13.3 15.1
Operating profit, excluding 15.6 18.2 32.3 28.6 66.4
non-recurring items
Operating profit 14.8 18.2 29.4 28.6 59.8
Operating profit, excluding 9.5 11.3 10.3 9.2 10.9
non-recurring items, %
Operating profit, % 9.0 11.3 9.4 9.2 9.8
Capital employed* 352.1 356.5 352.1 356.5 349.4
ROCE %* 17.2 6.3 17.2 6.3 17.1
Capital expenditure, excluding 4.5 3.4
acquisitions 8.2 5.5 21.0
Cash flow after investments,
excluding interest and taxes 8.5 47.7 21.1 55.9 93.5
* 12-month rolling average
The Municipal & Industrial segment's revenue in April-June totalled EUR 163.7
million. A year earlier it was EUR 160.7 million. The delivery volumes were
higher than in April-June 2009, but the average sales prices in some products
decreased as a result of a drop in raw material prices. The exchange rate
effects had a EUR 11 million positive impact on revenue. Healthy demand
continued in the municipal water treatment business, and delivery volumes were
slightly higher than a year ago. Also in the industrial water treatment business
the volumes increased, especially in Europe and Asia.
Operating profit excluding non-recurring items was EUR 15.6 million (18.2). The
decrease in some average sales prices due to the drop in raw material prices had
a negative impact on the result. Costs decreased in April-June by some EUR 7
million compared to the corresponding period in 2009. Exchange rates had no
significant effect on the result.
The segment's revenue in January-June was EUR 312.1 million (311.4). The average
prices decreased in some products as a result of a drop in raw material prices
seen in 2009. The sales volumes grew by about 5%. The exchange rate effect
increased the revenue by about EUR 14 million. Operating profit excluding
non-recurring items was EUR 32.3 million (28.6) and the operating profit margin
was 10.3% (9.2%). Costs in January-June were about EUR 21 million lower than in
January-June 2009. Exchange rates had no significant effect on the result.
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 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 78.1 55.2 144.7 109.6 235.0
EBITDA 12.6 5.4 21.3 9.9 23.6
EBITDA, % 16.1 9.8 14.7 9.0 10.1
Operating profit, 6.9 3.2 13.3 5.2 14.2
excluding non-recurring
items
Operating profit 10.3 3.2 16.7 5.2 19.9
Operating profit, 8.8 5.8 9.2 4.7 6.0
excluding non-recurring
items, %
Operating profit, % 13.2 5.8 11.5 4.7 8.5
Capital employed* 139.1 159.3 139.1 159.3 148.9
ROCE %* 22.6 0.6 22.6 0.6 13.4
Capital expenditure,
excluding acquisitions 1.1 0.9 2.3 1.5 4.7
Cash flow after
investments, excluding 7.1 16.3
interest and taxes 15.0 8.9 20.8
* 12-month rolling average
The Oil & Mining segment's revenue in April-June rose by 41% to EUR 78.1 million
(55.2). Overall sales volumes rose significantly from the corresponding period
in 2009. Demand has been strong, in particular in the oil and gas markets in
North America. Demand of chemicals for the mining industry recovered already
during the first quarter 2010.
Operating profit excluding non-recurring items for April-June was EUR 6.9
million (3.2). The operating profit margin rose to 8.8% from 5.8% last year. In
addition to the increase in sales volumes, the profit was improved by the
slightly higher average sales prices of products. Costs increased by some EUR 5
million compared to the corresponding period in 2009.
The segment's revenue in January-June 2010 rose by 32% to EUR 144.7 million
(109.6). The average sales prices of products maintained the same level as a
year before. The sales volumes grew by about 25%. The currency exchange effect
increased revenue by about EUR 2 million. Operating profit excluding
non-recurring items was EUR 13.3 million (5.2). Operating profit as a share of
revenue reached 9.2% (4.7%). Costs were at the same level in January-June as
they were in the corresponding period in 2009. Exchange rates had no significant
effect on the result.
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). 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 when Tikkurila was separated from Kemira Oyj.
On March 16, 2010 Kemira's Annual General Meeting decided that each of the four
Kemira's shares entitle their holder to receive one share of Tikkurila as a
dividend. In total, 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 continues to hold a 14% minority share in Tikkurila. The
taxation value and purchase price for the Tikkurila shares distributed as
dividend is the volume-weighted average price of the shares on the first trading
day, March 26, 2010, which was EUR 15.80.
Kemira Oyj's shares and shareholders
On June 30, 2010, Kemira Oyj's share capital was EUR 221.8 million and the
number of shares was 155,342,557. At the end of June, Kemira owned 3,600,225 own
shares (December 31, 2009: 3,854,771), which corresponds with 2.3% (December
31, 2009: 2.5%) of Kemira Oyj's shares. Based on the Annual General Meeting
decision on March 16, 2010, Kemira Oyj transferred 12,255 shares to the members
of Kemira Oyj's Board as part of the remuneration of the Board on May 7, 2010.
The highest share price of Kemira Oyj's shares on NASDAQ OMX Helsinki Oy in
January-June was EUR 13.19 and the lowest was EUR 7.89. The average share price
was EUR 9.86. The company's market value less the shares held by Kemira was EUR
1,338.4 million at the end of June.
Members of the Nomination Committee
The Board of Directors of Kemira Oyj has assembled a Nomination Committee to
prepare a proposal for the Annual General Meeting concerning the composition and
remuneration of the Board of Directors. The Nomination Committee consists of
representatives of the four largest shareholders of Kemira Oyj as of May
31, 2010 and the Chairman of the Board of Directors of the Company as an expert
member. Members of the Nomination Committee are Jari Paasikivi, President and
CEO of Oras Invest Oy; Kari Järvinen, Managing Director of Solidium Oy; Risto
Murto, Deputy CEO, Varma Mutual Pension Insurance Company; Timo Ritakallio,
Deputy CEO, Ilmarinen Mutual Pension Insurance Company; and Pekka Paasikivi,
Chairman of Kemira's Board of Directors as an expert member.
Other events during the review period
Kemira sold the sulphuric acid plant in Kokkola to Boliden Kokkola Oy. The
business operations were transferred to Boliden Kokkola Oy on May 1, 2010.
Kemira continues chemical terminal operations in Kokkola including services to
Boliden. The transaction has no significant impact on Kemira's financial result.
Kemira Oyj and a Swedish company Coor Service Management AB have May 21, 2010
signed a contract, according to which Kemira sold its IPOS service company to
Coor. IPOS (Industry Park of Sweden AB) provides its customers maintenance,
technical and other services in the Industry Park of Helsingborg. The IPOS legal
entity and a staff of about 130 persons were transferred to Coor per July
1, 2010. The transaction had no significant impact on Kemira's financial result.
June 23, 2010, Kemira and German Catec GmbH financially supported by Fengler
Beteiligungs GmbH signed a contract, according to which Kemira sells its global
Fluorescent Whitening Agents to Catec. The deal covers a production plant in
Leverkusen, the global sales network and the associated support functions. The
business employs about a 100 people, most of them in Germany. They will be
transferred to Catec at the end of the third quarter, when the transaction is to
be completed. The transaction has no significant impact on Kemira's financial
result.
On June 29, 2010, Kemira announced that it will start joint a R&D cooperation
with Nanyang Technological University (Singapore), with the aim to enhance used
water treatment and purification. The goal of the 2-year project is to design a
more efficient water treatment process which produces more clean water with
lower energy consumption and waste volume.
Randy Owens, President, Kemira Oil & Mining, will alongside his current role be
the region head of North America. Hannu Melarti, SVP, Region North America has
left the company to pursue career options outside Kemira as of July 1, 2010.
Kemira has received the European Commission's decision regarding anticompetitive
activities of animal feed phosphates producers in Europe on July 20, 2010. The
European Commission decided that Kemira should not pay any fine, since it was
the first company to report these activities to the Commission. Kemira has
cooperated with the European Commission during the investigation which began at
the end of 2003. Kemira divested the animal feed phosphates business in 2004.
Kemira informed the public about the Commission's investigations in 2004, in the
prospectus of Kemira GrowHow. The decision of the European Commission will not
have any financial impact on Kemira.
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.
Introduction of REACH legislation may decrease the available raw material
options and thus increase our raw material costs. REACH registration of Kemira's
own products may also be more expensive than estimated, in particular if we are
not able to share the costs with other companies. Acrylamide, boric acid,
borates and sodium dichromate have been added to the list of candidates for
authorization under REACH. If acrylamide, which Kemira uses as a raw material
for polymers, will be added to the list of substances subject to authorization
under REACH, this would make its use more difficult. Boric acid, borates and
sodium dichromate are mainly used in the production at Kemira Chemicals Oy.
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 on 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, and 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.
During the current year, Kemira expects the demand to develop favorably as our
customers' demand is getting stronger. Operating profit from continuing
operations, excluding non-recurring items, is expected to grow notably from last
year (2009: EUR 124.9 million).
Helsinki, 29 July 2010
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
Quarterly 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 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million
Continuing operations
Revenue 545.2 488.5 1,059.9 986.0 1,969.9
Other operating income 10.5 3.7 13.5 6.8 13.5
Expenses -487.4 -436.8 -942.3 -888.8 -1,776.2
Depreciation, impairments
and reversals of impairments -23.8 -26.1 -48.2 -50.6 -97.5
Operating profit 44.5 29.3 82.9 53.4 109.7
Financial income and expenses, net -9.8 -7.3 -17.7 -19.6 -37.8
Share of profit or loss of 2.6 -1.2 3.8 -5.0 -4.8
associates
Group contribution - - - - 9.4
Profit before tax 37.3 20.8 69.0 28.8 76.5
Income tax -10.0 -5.3 -14.0 -6.6 -9.4
Net profit for the period,
continuing operations 27.3 15.5 55.0 22.2 67.1
Discontinued operations
Net profit for the period,
discontinued operations - 14.0 531.0 13.4 18.4
Net profit for the period 27.3 29.5 586.0 35.6 85.5
Attributable to:
Equity holders of the parent 25.9 14.4 52.7 20.7 63.4
Minority interest 1.4 1.1 2.3 1.5 3.7
Net profit for the period 27.3 15.5 55.0 22.2 67.1
Earnings per share, continuing
operations
basic and diluted, EUR 0.17 0.11 0.35 0.16 0.47
Earnings per share, basic and 0.17 0.21 3.85 0.25 0.61
diluted, EUR
STATEMENT OF COMPREHENSIVE INCOME 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
Net profit for the period 27.3 29.5 586.0 35.6 85.5
Other comprehensive income, net of
tax:
Available-for-sale
- change in fair value 1.0 - -2.5 - 3.7
Exchange differences 16.8 10.5 53.8 2.6 28.1
Hedge of net investment
in foreign entities -4.1 0.0 -8.6 -0.8 -3.0
Cash flow hedging 3.8 7.7 2.1 5.1 10.0
Other changes 0.4 0.5 -0.3 0.0 -0.4
Other comprehensive income, net of 17.9 18.7 44.5 6.9 38.4
tax
Total comprehensive income 45.2 48.2 630.5 42.5 123.9
Attributable to:
Equity holders of the parent 43.7 46.1 627.0 40.8 119.9
Minority interest 1.5 2.1 3.5 1.7 4.0
Total comprehensive income 45.2 48.2 630.5 42.5 123.9
BALANCE SHEET
EUR million
ASSETS 30.6.2010 31.12.2009 *
Non-current assets
Goodwill 612.7 658.0
Other intangible assets 69.5 102.2
Property, plant and equipment 679.8 761.5
Holdings in associates 134.2 131.1
Available-for-sale investments 260.6 166.2
Deferred tax assets 18.5 18.8
Other investments 11.4 13.2
Defined benefit pension receivables 35.7 35.3
Total non-current assets 1,822.4 1,886.3
Current assets
Inventories 192.6 246.5
Interest-bearing receivables 1.0 1.4
Accounts receivables and other receivables 366.3 400.6
Current tax asset 8.5 7.3
Money market investments 78.9 202.1
Cash and cash equivalents 33.7 72.5
Total receivables 681.0 930.4
Non-current assets held-for sale ** 14.7 -
Total assets 2,518.1 2,816.7
30.6.2010 31.12.2009 *
EQUITY AND LIABILITIES
Equity attributable to equity 1,237.0 1,249.5
holders of the parent
Minority interest 24.0 19.3
Total equity 1,261.0 1,268.8
Non-current liabilities
Interest-bearing non-current 597.1 512.6
liabilities
Deferred tax liabilities 70.2 90.1
Pension liabilities 55.9 70.4
Provisions 55.4 55.6
Total non-current liabilities 778.6 728.7
Current liabilities
Interest-bearing current 126.5 437.6
liabilities
Interest-free current liabilities 312.2 369.1
Current tax liabilities 15.3 0.5
Provisions 11.7 12.0
Total current liabilities 465.7 819.2
Non-current liabilities classified as 12.8 -
held for sale **
Total liabilities 1,257.1 1,547.9
Total equity and liabilities 2,518.1 2,816.7
* Includes Tikkurila
** Non-current assets held-for sale consist of assets and
liabilities of IPOS (Industry Park of Sweden AB) located in Sweden,
which are transferred in the company sale to Coor Service
Management AB per July 1, 2010. Kemira Oyj and Coor Service
Management AB signed the contract on May 21, 2010.
CONSOLIDATED CASH FLOW 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
STATEMENT
EUR million
Includes Tikkurila until
March 25, 2010
Cash flow from operating
activities
Profit for the period 25.9 28.5 583.7 34.2 81.8
Total adjustments 31.3 52.5 -455.0 101.0 206.9
57.2 81.0 128.7 135.2 288.7
Change in net working -21.9 52.1 -52.0 -11.2 74.4
capital
35.3 133.1 76.7 124.0 363.1
Financing items -15.5 -13.7 -32.0 -20.6 -49.0
Taxes paid -4.6 -9.6 -10.0 -15.7 -26.3
Net cash generated from
operating activities 15.2 109.8 34.7 87.7 287.8
Cash flow from investing
activities
Capital expenditure for - -3.7 - -3.7 -3.7
acquisitions
Other capital expenditure -15.1 -23.4 -31.2 -36.1 -82.2
Proceeds from sale of 1.9 1.2 -17.0 1.6 2.4
assets *
Change in other investments -0.1 - 148.1 - -2.1
*
Net cash used in investing -13.3 -25.9 99.9 -38.2 -85.6
activities
Cash flow before financing 1.9 83.9 134.6 49.5 202.2
activities
Cash flow from financing
activities
Proceeds from non-current
interest-bearing 4.2 4.3 49.4 56.6 228.3
liabilities
Repayments from
non-current
interest-bearing -13.9 -26.1 -25.2 -18.2 -249.7
liabilities
Short-term financing,
net (increase +, decrease -24.1 2.2 -254.8 -10.9 -183.6
-)
Dividends paid -44.7 -33.0 -44.7 -33.0 -33.5
Share issue - - - - 200.0
Other financing items 19.4 6.4 -22.7 -0.6 -11.3
Net cash used in financing -59.1 -46.2 -298.0 -6.1 -49.8
activities
Net change in cash and cash -57.2 37.7 -163.4 43.4 152.4
equivalents
Cash and cash equivalents 119.7 161.4 119.7 161.4 274.6
at end of period
Exchange gains (+) / losses
(-) on cash
and cash equivalents -4.2 1.7 -8.5 1.4 -2.8
Cash and cash equivalents
at beginning of period 172.7 125.4 274.6 119.4 119.4
Net change in cash and cash -57.2 37.7 -163.4 43.4 152.4
equivalents
* 1-6/2010 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 221.8 257.9 81.4 -
January 1, 2009
Net profit for the period - - - -
Other comprehensive income, - - 5.1 -
net of tax
Total comprehensive income - - 5.1 -
Dividends paid - - - -
Share-based compensations - - - -
Changes due to business - - - -
combinations
Transfers in equity - - 0.1 -
Shareholders' equity at June 221.8 257.9 86.6 -
30, 2009
Shareholders' equity at 221.8 257.9 95.8 196.3
January 1, 2010
Net profit for the period - - - -
Other comprehensive income, - - -0.5 -
net of tax
Total comprehensive income - - -0.5 -
Dividends paid - - - -
Treasury shares issued to
target group
of share-based incentive - - - -
plan
Share-based compensations - - - -
Changes due to business - - - -
combinations
Shareholders' equity at June 221.8 257.9 95.3 196.3
30, 2010
Equity attributable to equity
holders of the parent
Exchange Treasury Retained
differences shares earnings
Shareholders' equity at -104.6 -25.9 532.2
January 1, 2009
Net profit for the period - - 34.1
Other comprehensive income, 1.5 - 0.1
net of tax
Total comprehensive income 1.5 - 34.2
Dividends paid - - -30.3
Share-based compensations - - 0.4
Changes due to business - - -
combinations
Transfers in equity - - -0.1
Shareholders' equity at June -103.1 -25.9 536.4
30, 2009
Shareholders' equity at -79.9 -25.9 583.6
January 1, 2010
Net profit for the period - - 583.7
Other comprehensive income, 43.7 - 0.1
net of tax
Total comprehensive income 43.7 - 583.8
Dividends paid - - -640.3
Treasury shares issued to
target group
of share-based incentive - 1.7 -
plan
Share-based compensations - - -0.7
Changes due to business - - -0.3
combinations
Shareholders' equity at June -36.2 -24.2 526.1
30, 2010
Minority
interests Total
Shareholders' equity at 13.2 976.0
January 1, 2009
Net profit for the period 1.5 35.6
Other comprehensive income, 0.2 6.9
net of tax
Total comprehensive income 1.7 42.5
Dividends paid -2.7 -33.0
Share-based compensations - 0.4
Changes due to business 5.5 5.5
combinations
Transfers in equity - 0.0
Shareholders' equity at June 17.7 991.4
30, 2009
Shareholders' equity at 19.2 1,268.8
January 1, 2010
Net profit for the period 2.3 586.0
Other comprehensive income, 1.2 44.5
net of tax
Total comprehensive income 3.5 630.5
Dividends paid -3.7 -644.0
Treasury shares issued to
target group
of share-based incentive - 1.7
plan
Share-based compensations - -0.7
Changes due to business 5.0 4.7
combinations
Shareholders' equity at June 24.0 1,261.0
30, 2010
Kemira had in its possession 3,600,225 of its treasury shares on June 30, 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 5.1 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 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
Earnings per share, continuing
operations,
basic and diluted, EUR ** 0.17 0.11 0.35 0.16 0.47
Earnings per share, discontinued
operations, basic and diluted, EUR - 0.10 3.50 0.09 0.14
**
Cash flow from operations per
share,
EUR ** 0.10 0.82 0.23 0.66 2.13
Capital expenditure, EUR million 18.6 27.1 34.7 39.8 85.9
Capital expenditure / revenue, % 3.4 4.2 3.0 3.2 3.4
Average number of shares (1000),
basic * 151,647 133,309 151,647 133,309 134,824
Average number of shares (1000),
diluted * 151,734 133,309 151,734 133,309 135,085
Number of shares at end
of period (1000), basic * 151,722 133,309 151,722 133,309 151,488
Number of shares at end of
period (1000), diluted * 151,722 133,309 151,722 133,309 151,748
Equity per share, attributable to
equity holders of the parent, EUR ** 8.15 7.30 8.25
Equity ratio, % 50.2 35.0 45.1
Gearing, % 48.5 104.3 53.2
Interest-bearing net liabilities,
EUR million 611.0 1,033.7 675.6
Personnel (average) 6,259 9,052 8,843
* Number of shares outstanding, excluding the number of shares bought
back.
** Rights offering restatement year
2009
REVENUE BY BUSINESS AREA 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million
Paper external 247.4 222.2 481.4 446.1 905.2
Paper Intra-Group - -0.6 - 0.5 1.2
Municipal & Industrial external 163.7 160.4 312.1 311.1 607.3
Municipal & Industrial Intra-Group - 0.3 - 0.3 0.2
Oil & Mining external 78.1 52.3 144.7 109.3 234.4
Oil & Mining Intra-Group - 2.9 - 0.3 0.6
Other external 56.0 53.6 121.7 119.5 223.0
Other Intra-Group - 18.1 0.1 37.4 77.4
Eliminations - -20.7 -0.1 -38.5 -79.4
Total, continuing operations 545.2 488.5 1,059.9 986.0 1,969.9
Tikkurila, external,
discontinued operations - 162.4 108.2 273.6 530.2
Total 545.2 650.9 1,168.1 1,259.6 2,500.1
OPERATING PROFIT BY BUSINESS AREA 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million
Paper 21.0 8.0 36.2 15.5 40.1
Municipal & Industrial 14.8 18.2 29.4 28.6 59.8
Oil & Mining 10.3 3.2 16.7 5.2 19.9
Other -1.6 -0.1 0.6 4.1 -10.1
Eliminations - - - - -
Total, continuing operations 44.5 29.3 82.9 53.4 109.7
Tikkurila, discontinued operations - 22.1 5.3 26.1 47.7
Total 44.5 51.4 88.2 79.5 157.4
CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1-6/2010 1-6/2009 2009
EUR million
Carrying amount at beginning of year 761.5 765.7 765.7
Acquisitions of subsidiaries - - 0.1
Increases 27.9 34.7 76.1
Decreases -2.1 -1.7 -2.0
Disposal of subsidiaries -115.9 - -
Depreciation, impairments
and reversals of impairments -44.6 -48.6 -88.9
Exchange rate differences and
other changes 53.0 4.1 10.5
Net carrying amount at end of period 679.8 754.2 761.5
CHANGES IN INTANGIBLE ASSETS 1-6/2010 1-6/2009 2009
EUR million
Carrying amount at beginning of year 760.2 766.7 766.7
Acquisitions of subsidiaries - 2.4 2.4
Increases 6.8 6.4 11.6
Decreases - - -0.1
Disposal of subsidiaries -101.3 - -
Depreciation and impairments -8.3 -11.2 -27.6
Exchange rate differences and
other changes 24.8 3.8 7.2
Net carrying amount at end of period 682.2 768.1 760.2
CONTINGENT LIABILITIES 30.6.2010 31.12.2009
EUR million
Mortgages 13.9 37.5
Assets pledged
On behalf of own 5.9 5.5
commitments
Guarantees
On behalf of own 47.4 45.2
commitments
On behalf of associates 0.9 1.0
On behalf of others 5.0 9.2
Operating leasing
liabilities
Maturity within one year 22.2 26.0
Maturity after one year 125.9 137.3
Other obligations
On behalf of own 1.0 1.7
commitments
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 June 30, 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.
Kemira defends 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
30.6.2010 31.12.2009
Nominal Fair Nominal Fair
value value value value
Currency instruments
Forward contracts 498.2 3.2 549.5 1.5
of which hedges of
net investment in a - - - -
foreign operation
Currency options
Bought - - - -
Sold - - - -
Currency swaps - - 29.3 -3.9
Interest rate
instruments
Interest rate swaps 353.2 -9.6 354.7 -9.4
of which cash flow 315.1 -7.8 307.8 -7.4
hedge
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 GWh Fair value GWh Fair value
Fair Fair
Electricity forward 1,036.1 4.5 1,156.7 1.2
contracts, bought
of which cash flow 966.0 4.4 1,051.6 1.1
hedge
Electricity forward 70.1 -0.1 - -
contracts, sold
of which cash flow - - - -
hedge
Fair Fair
K tons value K tons value
Natural gas hedging 12.5 -0.4 14.8 -0.2
of which cash flow 12.5 -0.4 14.8 -0.2
hedge
Salt derivatives - - 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 2009 2009 2009 2009
EUR million Q4 Q3 Q2 Q1
Continuing operations
Revenue
Paper external 229.2 229.9 222.2 223.9
Paper Intra-Group 0.4 0.3 -0.6 1.1
Municipal & Industrial external 140.6 155.6 160.4 150.7
Municipal & Industrial Intra-Group - -0.1 0.3 -
Oil & Mining external 69.2 55.9 52.3 57.0
Oil & Mining Intra-Group 0.2 0.1 2.9 -2.6
Other external 57.2 46.3 53.6 65.9
Other Intra-Group 20.6 19.4 18.1 19.3
Eliminations -21.2 -19.7 -20.7 -17.8
Total 496.2 487.7 488.5 497.5
Operating profit
Paper 9.8 14.8 8.0 7.5
Municipal & Industrial 6.3 24.9 18.2 10.4
Oil & Mining 11.2 3.5 3.2 2.0
Other -10.0 -4.2 -0.1 4.2
Eliminations - - - -
Total 17.3 39.0 29.3 24.1
Operating profit, excluding non-recurring items
Paper 14.6 14.8 8.0 7.5
Municipal & Industrial 12.9 24.9 18.2 10.4
Oil & Mining 5.5 3.5 3.2 2.0
Other -0.5 -4.2 -0.1 4.2
Eliminations - - - -
Total 32.5 39.0 29.3 24.1
2010 2010
Q2 Q1
Revenue
Paper external 247.4 234.0
Paper Intra-Group - -
Municipal & Industrial external 163.7 148.4
Municipal & Industrial Intra-Group - -
Oil & Mining external 78.1 66.6
Oil & Mining Intra-Group - -
Other external 56.0 65.7
Other Intra-Group - 0.1
Eliminations - -0.1
Total 545.2 514.7
Operating profit
Paper 21.0 15.2
Municipal & Industrial 14.8 14.6
Oil & Mining 10.3 6.4
Other -1.6 2.2
Eliminations - -
Total 44.5 38.4
Operating profit, excluding non-recurring items
Paper 18.3 15.2
Municipal & Industrial 15.6 16.7
Oil & Mining 6.9 6.4
Other -0.3 0.8
Eliminations - -
Total 40.5 39.1
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 Capital employed(1) 2))
end of period
(1))Average
(2)) Net working capital + property, plant and
equipment available for use + intangible assets
available for use + investments in associates
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 -4.7 -18.8
reversals of impairments
Operating profit 5.3 47.7
Financial income and -1.6 -12.0
expenses, net
Share of profit or - 0.1
loss of associates
Group contribution - -9.4
Profit before tax 3.7 26.4
Income tax -1.9 -8.0
Net profit for the 1.8 18.4
period
Profit for Tikkurila 529.2
spin off
Net profit for the period, 531.0
discontinued operations
Attributable to,
discontinued
operations:
Equity holders of the 1.8
parent
Minority interest 0.0
Net profit for the 1.8
period
Earnings per share, discontinued
operations,
basic and diluted, 3.50 0.14
EUR
CASH FLOW 1.1.- 25.3.2010 1.1. - 31.12.2009
EUR million
Cash flow from -29.0 62.5
operating activities
Cash flow from -1.9 -17.1
investing activities
Cash flow from 24.9 -53.1
financing activities
Net change in cash and -6.0 -7.7
cash equivalents
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 -164.0 -140.6
liabilities
Current liabilities -132.6 -118.6
Assets and 155.5 143.9
liabilities, net
Expenses paid in cash -10.4
1)
Cash and cash equivalents of -19.2
discontinued operations
The effect on cash -29.6
flow
1) Expenses paid in cash include transfer tax and other
expenses of EUR 10.3 million paid during the second quarter
in 2010.
[HUG#1434577]
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