2015-07-22 13:30:00 CEST
2015-07-22 13:31:04 CEST
REGULATED INFORMATION
Kemira Oyj - Interim report (Q1 and Q3)
Kemira Oyj's Interim Report January-June 2015: Revenue growth with improved profitability
Kemira Oyj
Stock Exhange Release
July 22, 2015 at 2.30 pm (CET+1)
This is a summary of the January - June 2015 Interim report. The complete
January - June 2015 Interim report with tables is attached to this release and
available at www.kemira.com/investors.
Second quarter:
* Revenue increased 15% to EUR 594.8 million (518.2) supported by the
acquisition of AkzoNobel's paper chemicals business, completed on May 4, and
favorable currency exchange rates. Revenues in local currencies, excluding
acquisitions and divestments remained largerly unchanged.
* Operative EBITDA increased 24% to EUR 74.7 million (60.2) with an improved
margin of 12.6% (11.6%).
January-June:
* Revenue increased 10% to EUR 1,147.8 million (1,048.1).
* Operative EBITDA increased 20% to EUR 141.1 million (117.7) with a margin of
12.3% (11.2%).
* Operative earnings per share increased 10% to EUR 0.32 (0.29).
* Kemira's outlook for 2015 is updated to include the acquisition of
AkzoNobel's paper chemicals business. Kemira expects its revenue and
operative EBITDA in 2015 to increase compared to 2014.
Kemira's President and CEO Jari Rosendal:"We had a strong second quarter with 15% revenue growth and improved operative
EBITDA margin of 12.6%. Favorable currency exchange rates continued to
contribute to the revenue growth. The acquired AkzoNobel's paper chemicals
business has been consolidated since May 2015. We have succeeded well with
business continuity and integration has started according to plan. Earlier
communicated synergies are expected to start showing towards the end of the
year.
Organic growth in the Paper segment continued above-the-market at 4%. Growth was
driven mainly by higher sales volumes across continental Europe and increasing
pulp chemical deliveries to the new Montes del Plata pulp mill in Uruguay. I am
glad to note that in the second quarter, Paper segment's profitability improved
notably, despite the significant efforts put on the integration of a major
acquisition.
In the Oil & Mining segment sales volumes have been impacted by the significant
reduction of shale drilling and fracking activity in the US. However, despite
the decline of sales volumes, absolute operative EBITDA contribution remained at
the level of the comparable quarter. In EMEA, we started first polyacrylamide
shipments for the chemically enhanced oil recovery.
The Municipal & Industrial segment's turnaround and revenue recovery continued
and the segment delivered profitable growth in line with its strategic
objective. Organic growth reached 3% driven by higher sales volumes in all
regions and the operative EBITDA margin was more than 14%.
I am satisfied with Kemira's progress in the first half of the year. Our
businesses delivered solid results, despite the current slowdown of activity in
shale operations in US."
KEY FIGURES AND RATIOS
Jan-Jun Jan-Jun Jan-Dec
EUR million Apr-Jun 2015 Apr-Jun 2014 2015 2014 2014
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Revenue 594.8 518.2 1,147.8 1,048.1 2,136.7
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Operative EBITDA 74.7 60.2 141.1 117.7 252.9
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Operative 12.6 11.6 12.3 11.2 11.8
EBITDA, %
-------------------------------------------------------------------------------
EBITDA 66.1 34.9 131.3 112.6 252.9
-------------------------------------------------------------------------------
EBITDA, % 11.1 6.7 11.4 10.7 11.8
-------------------------------------------------------------------------------
Operative EBIT 44.8 37.0 83.9 73.3 158.3
-------------------------------------------------------------------------------
Operative EBIT, 7.5 7.1 7.3 7.0 7.4
%
-------------------------------------------------------------------------------
EBIT 34.3 10.0 72.1 64.3 152.6
-------------------------------------------------------------------------------
EBIT, % 5.8 1.9 6.3 6.1 7.1
-------------------------------------------------------------------------------
Share of profit 0.0 0.0 0.2
or loss of 0.1 0.3
associates
-------------------------------------------------------------------------------
Financing income -9.3 -8.5 -16.8 -13.8 -30.7
and expenses
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Profit before 25.1 1.5 55.6 50.5 122.1
tax
-------------------------------------------------------------------------------
Net profit 19.3 1.8 45.7 44.9 95.8
-------------------------------------------------------------------------------
Earnings per 0.12 0.00 0.28 0.28 0.59
share, EUR
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Operative 0.14 0.29 0.63
earnings per 0.19 0.32
share, EUR
-------------------------------------------------------------------------------
Capital 1,534.0 1,442.3 1,534.0 1,442.3 1,427.7
employed*
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Operative ROCE* 11.0 10.8 11.0 10.8 11.1
-------------------------------------------------------------------------------
ROCE* 10.5 3.8 10.5 3.8 10.7
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Capital 159.3 34.0 186.3 59.6 145.1
expenditure
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Cash flow after -39.5 90.8 75.2
investing -147.2 -131.2
activities
-------------------------------------------------------------------------------
Equity ratio, % 46 49 46 49 51
at period-end
-------------------------------------------------------------------------------
Gearing, % at 62 41 62 41 42
period-end
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Personnel at 4,739 4,296 4,739 4,296 4,248
period-end
-------------------------------------------------------------------------------
*12-month rolling average (ROCE, % based on the EBIT)
Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Comparative 2014 figures are provided in parentheses for
some financial results, where appropriate. Operative EBITDA, operative EBIT,
operative earnings per share and operative ROCE do not include non-recurring
items.
KEMIRA'S FINANCIAL TARGETS 2017 AND UPDATED OUTLOOK for 2015
Kemira will continue to focus on improving its profitability and operative cash
flow. The company will also continue to invest in order to secure future growth
to serve selected water intensive industries.
The company's financial targets for 2017 are:
* Revenue EUR 2.7 billion
* Operative EBITDA-% of revenue 15%
* Gearing level <60%.
Kemira expects its capital expenditure-to-sales ratio, excluding acquisitions to
increase in the next few years from the 2014 level of 6.3%. In addition, Kemira
expects its medium-term operative tax rate to be in the range of 22%-25%. This
rate excludes non-recurring items.
The basis for growth is the expanding market for chemicals and Kemira's
expertise that helps customers in water intensive industries to increase their
water, energy and raw material efficiency. The need to increase operational
efficiency in our customer industries creates opportunities for Kemira to
develop new products and services for both current and new customers. Research
and Development is a critical enabler of organic growth for Kemira, providing
differentiation capabilities in its relevant markets. Kemira will invest in
innovation, technical expertise, and competencies in its selected focus areas.
Outlook for 2015 (updated to include the acquisition completed in May, 2015)
Updated outlook for 2015: In 2015, Kemira will focus on profitable growth both
organically and inorganically. Kemira's revenue and operative EBITDA in 2015 are
expected to increase compared to 2014. The outlook includes the impact of
AkzoNobel's paper chemicals business.
Previous outlook for 2015: In 2015, Kemira will focus on profitable growth both
organically and inorganically. Kemira's revenue in 2015 is expected to increase
compared to 2014 and operative EBITDA in 2015 to remain approximately at the
same level or to increase compared to 2014. The outlook excludes the impact of
AkzoNobel's paper chemical business (acquisition expected to close in the second
quarter of 2015). At closing, AkzoNobel's paper chemical business is expected to
add revenue of more than EUR 200 million on an annualized basis.
Helsinki, July 22, 2015
Kemira Oyj
Board of Directors
FINANCIAL CALENDAR 2015 AND 2016
Interim Report January-September 2015 October 23, 2015
Financial Statements Bulletin 2015 February 11, 2016
Interim Report January-March 2016 April 26, 2016
Interim Report January-June 2016 July 21, 2016
Interim Report January-September 2016 October 25, 2016
Kemira Capital Markets Day will be held in Espoo R&D Center, Finland on
September 17, 2015.
Press and analyst conference and conference call
Kemira will arrange a press conference for analysts and the media starting at
3.30 pm (1.30 pm UK time) at Kemira House, Porkkalankatu 3, Helsinki. In the
conference, Kemira's President and CEO Jari Rosendal and CFO Petri Castrén will
present the results. The press conference will be held in English and will be
webcasted at www.kemira.com/investors. The presentation material will be
available around 3.00 pm and the webcast after the event at the above mentioned
company web site.
Conference call in connection to the press and analyst conference
You can also listen to the conference live over the phone and attend the Q&A
session via a conference call. In order to participate in the call, please dial
ten minutes before the conference begins:
FI: +358 9 817 10495
SE: +46 8 566 42702
UK: +44 20 31940552
US: +1 855 7161597
No PIN code requested.
For more information, please contact
Kemira Oyj
Tero Huovinen, VP, Investor Relations
+358 10 862 1980
Kemira is a global chemicals company serving customers in water-intensive
industries. We provide expertise, application know-how and chemicals that
improve our customers' water, energy and raw material efficiency. Our focus is
on pulp & paper, oil & gas, mining and water treatment. In 2014, Kemira had
annual revenue of EUR 2.1 billion and around 4,250 employees. Kemira shares are
listed on the NASDAQ OMX Helsinki Ltd.
www.kemira.com
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