SlideShare une entreprise Scribd logo
1  sur  37
Télécharger pour lire hors ligne
Kemira
January-December 2012: Year of change
Wolfgang Büchele, President & CEO
February 6, 2013
Executive overview
Q4 2012
Outlook 2013
AGENDA
2
Satisfactory financial performance in 2012
3
Revenue EUR 2,240.9 million (2,207.2 in 2011), +2%
- Revenue in emerging markets grew 9%, driven by Paper in APAC region
Operative EBIT EUR 154.1 million (157.3), -2%
- Operative EBIT margin 6.9% (7.1%)
- ”Fit for Growth” launched in July 2012, to reach 10% EBIT margin in 2014
Operative earnings per share EUR 0.77 (0.89)
- Lower income from associated companies had EUR 0.13 negative impact
Board of Directors proposes EUR 0.53 dividend (0.53), 69%
payout ratio (60%)
Cash flow after investing activities EUR 71.8 million (115.3)
New organization in operation since October, 2012
- Accelerating growth, reducing complexity
- New performance management system introduced to focus the whole organization
on value creation
Personnel reduction
- Up to 600 employees, 12% of the total workforce
- Most of the co-determination negotiations have been accomplished
Manufacturing network optimization
- Almost 20% of all production sites either decided to be closed or under review
Leaner operation
- NWC* ratio target is 11% in 2014 (12.8% in 2012)
Sharpened strategy will be presented in April, 2013
4
Significant structural change ongoing
*Net working capital
5
Kemira operative EBIT margin trend by segments
”Fit for Growth” launched to improve profitability
• Product mix optimization and growth driving profitability improvement in
Paper and in Oil & Mining
• Implemented cost savings and efficiency improvements will boost margins
in Municipal & Industrial and ChemSolutions
2%
4%
6%
8%
10%
12%
14%
16%
2009 2010 2011 2012
Paper Municipal & Industrial Oil & Mining ChemSolutions EBIT margin target
Municipal & Industrial - ”Fit for Growth” to drive
profitability turnaround
6
• Manufacturing network optimization reduces cost volatility
• Cost savings through site closures, M&I operates at 40 sites
(over 20% of the sites decided to be closed, sold or under review)
• Customer segmentation improves efficiency
• Q1 2012 negatively impacted by higher maintenance costs, Q4 2012 by
clearance of inventory of low-margin products
EUR million
Industrial
Municipal
Municipal & Industrial segment revenue split and operative EBIT margin
10.9 %
9.2 %
7.1 % 6.2 %
0%
2%
4%
6%
8%
10%
12%
0
100
200
300
400
500
600
700
800
2009 2010 2011 2012
Municipal & Industrial is currently optimizing the production
footprint for inorganic coagulants
7
… in order to increase
profitability
Best use of available cheap raw materials
Coagulant production footprint
optimization…
Raw material* costs
Raw material* costs
Fixed costs of plants
Fixed costs of plants
Freights to customers
Freights to customers
Minimize
+
+
• New site investments in Tarragona & Dormagen will yield quick returns thanks to
improved network optimization. Fixed costs will be reduced by 40% and raw
material costs are expected to decline by 20% in the specific market region
Access to raw materials
Access to raw materials
Reduced cost of footprint
Reduced cost of footprint
Delivery to customers
Delivery to customers
High freights require plants to be close to
customer clusters
Close plants to reduce overcapacity
in network
*Copperas, magnetite, scrap iron, spent pickling liquor, liquid chlorine, sulphuric acid,
hydrochloric acid
ChemSolutions - ”Fit for Growth” will improve profitability
• Raw material prices and maintenance shutdown impacted profitability in 2012
• “Fit for Growth” to return profitability above 10% EBIT margin by 2014
• Focus on formic acid and related derivatives
• Maximize output of Kemira’s formic acid plant in Oulu
8
EUR million
ChemSolutions revenue* split and operative EBIT margin
14.3 %
15.0 %
11.3 %
7.8 %
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012
De-icers
Chemical & Pharma
Food & Feed
*Divestment of food and pharmaceutical businesses will have
approximately EUR 50 million impact on revenue in 2013
Kemira target is to reduce 50% of the total # of SKU’s*
9
• SKU reduction as part of the focus on lean operation will lead to significant
cost savings
• In ChemSolutions’ Oulu formic acid plant 70% SKU reduction was identified
leading to EUR 2 million annual EBIT improvement
• SKU reduction in Oulu accomplished by merging trade names and deleting
small SKUs
-70% reduction
ChemSolutions portfolio
*Stock-keeping units
Kemira SKU reduction target
Oulu
SKU reduction target # of SKU’s in 2014 Current # of SKU’s # of SKU’s in 2014
Paper – Packaging and board driving growth
10
• Over 5% market growth* in APAC (Packaging and Board) and SA (Pulp)
• Newsprint share of Paper segment revenue less than 4%
• Tissue and fiber based packaging markets are expected to grow over 4%*
• Trend towards recycled fiber and lighter paper qualities will increase the
chemicals consumption
Paper segment revenue split and operative EBIT margin
Tissues and specialties
Packaging and board
Printing and writing
Pulp
EUR million
5.0% 7.7% 7.7% 8.6%
2%
4%
6%
8%
10%
0
200
400
600
800
1000
1200
2009 2010 2011 2012
24%
31%
*Expected market growth 2013-2020
Understanding customers’ needs is a key competitive advantage
11
• Kemira’s Fennobond enables yield advantage resulting in 5%-10 % lighter* end
customer product
• Chemicals helps customers to optimize their raw material use e.g fiber consumption
• Customers’ process efficiency improves by using right chemistry
*Source: MetsäBoard
…10,000 miles later
Oil & Mining – Good base for growth
12
• Atlanta R&D center ensuring continuous competence development
• 60% polymer capacity expansion finalized at the end of 2012
• Small acquisitions targeted to gain stronger market position
• Portfolio rebalancing by exiting low-margin product sales to be finalized by the
end of 2013 (approximately EUR 10 million negative impact in 2013)
EUR million
Oil & Mining segment revenue and operative EBIT margin
6.0 %
9.6 %
10.8 %
11.6 %
2%
4%
6%
8%
10%
12%
14%
0
50
100
150
200
250
300
350
2009 2010 2011 2012
13
Revenue growth generated through new innovative
solutions
• New product and application sales* generated EUR 106 million in 2012 (40 in 2011)
- New products and product applications on average generate 15% higher gross margin
- Most of the new sales in 2012 from oil and gas, as well as tissue customer segments
• Kemira spends roughly 2% of its revenue on R&D
*New product and application sales = products and applications launched within the past 5 years
Revenue 2011 New product
and product
applications
Other growth O&M product
exit
Divestments Revenue 2012
EUR million
2,207
66 11 -20
-23
2,241
14
Executive overview
Q4 2012
Outlook 2013
Kemira financial highlights – Q4 2012
EUR million Oct-Dec
2012
Oct-Dec
2011
%
Jan-Dec
2012
Jan-Dec
2011
%
Revenue 558.5 543.3 3 2,240.9 2,207.2 2
Operative EBIT 33.7 34.3 -2 154.1 157.3 -2
Operative EBIT, % 6.0 6.3 - 6.9 7.1 -
Income from associated companies -5.7 7.2 - 11.2 31.0 -64
Financial income and expenses -4.1 -5.5 - -15.7 -20.9 -
Operative EPS, EUR 0.13 0.24 -46 0.77 0.89 -13
Cash flow after financing activities 9.4 -27.3 - 71.8 115.3 -38
Number of personnel 4,857 5,006 -3 4,857 5,006 -3
15
• Revenue increased 3% to EUR 558.5 million (543.3)
- Sales volumes increased in Paper and Municipal & Industrial segments
• Fixed costs increased EUR 7 million despite ”Fit for Growth” savings
• Operative EPS decreased due to EUR -5.7 million loss from JV Sachtleben
• Cash flow after financing activities was positive as a result of net working capital reduction
• Some 40% of the employees already made redundant are still on the payroll
Kemira Group revenue growth trend
16
‐15%
‐10%
‐5%
0%
5%
10%
15%
20%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2009 2010 2011 2012
Sales volumes and prices
Divestments
Acquisitions
Currency
Total growth
• Q4 2012 sales prices slightly higher year-on-year
- Paper, Oil & Mining and ChemSolutions increased sales prices
• Q4 2012 sales volumes grew vs Q4 2011 due to recovered demand in Paper and M&I
• Reported revenue has been supported by favorable currency exchange in 2012
Good balance between sales and raw material prices
-150
-100
-50
0
50
100
150
200
Q4/2007
Q1/2008
Q2/2008
Q3/2008
Q4/2008
Q1/2009
Q2/2009
Q3/2009
Q4/2009
Q1/2010
Q2/2010
Q3/2010
Q4/2010
Q1/2011
Q2/2011
Q3/2011
Q4/2011
Q1/2012
Q2/2012
Q3/2012
Q4/2012
Brent oil, USD Sales price* Variable costs*
17
Largest product categories (accounting for ~55% of Kemira’s revenue)
and most relevant businesses:
- Polymers: Oil & Mining, Paper wet-end and industrial customer segment
- Electrolysis products: pulp customer segment
- Coagulants: municipal customer segment
*12-month rolling change vs previous year, meur, excl. Tikkurila and Pigments
Kemira sales prices vs variable costs
Q4 2011 Sales
volumes and
prices
Variable
costs
Fixed costs Currency
impact
Others, incl.
acquisitions
and
divestments
Q4 2012
EUR million
34.3
10 -4
-7
1 -1
33.7
Kemira operative EBIT Q4 2012 vs Q4 2011
18
• Positive effect derived from higher sales volumes and sales prices was
offset by higher variable and fixed costs
Q4 2011
fixed costs
Wages and
salaries
Pension costs Reclassification
of variable
costs
Maintenance
costs
Emerging
markets
resources
"Fit for Growth"
fixed costs
Q4 2012
fixed costs
EUR million
3
4
1
1
2
Kemira fixed costs in Q4 2012 vs Q4 2011
19
-4
• Fixed costs increased EUR 7 million in Q4 2012 vs Q4 2011
• Exceptional high pension credits of EUR 4 million 2011 combined with higher
headcount (mainly APAC,SA) EUR 2 million and cost inflation in wages and
salaries EUR 3 million was partly compensated by ”Fit for Growth” savings.
2011 fixed
costs
Wages and
salaries
Pension costs Reclassification
of variable
costs
Maintenance
costs in H1
2012
Emerging
markets
resources
"Fit for Growth"
fixed costs
2012 fixed
costs
EUR million
7
4
3
3
3
Kemira fixed costs 2012 vs 2011
20
-5
• Fixed costs increased EUR 15 million in 2012
• H1 2012 fixed costs were EUR 13 million higher due to higher maintenance
and personnel expenses
• H2 2012 fixed costs EUR 2 million higher despite ”Fit for Growth” cost savings
Paper – EUR 1 billion revenue and improved profitability in 2012
21
(EUR million) Q4/12 Q4/11 % 2012 2011 %
Revenue 250.3 234.5 7 1,002.0 973.3 3
Operative EBIT 20.8 14.2 46 86.2 75.4 14
Operative EBIT, % 8.3 6.1 - 8.6 7.7 -
Cash flow* -3.4 38.8 - 30.6 90.9 -66
Revenue increased by 7% vs. Q4/2011
• Reported revenue grew in all sub-segments
• Recovered demand in pulp, increased sales prices to printing and writing
• Currency exchange +2%
• Divestments -1%
Operative EBIT in Q4 2012 increased 46%
to EUR 20.8 million (14.2)
• Organic revenue growth
• Efficiency improvements and ”Fit for Growth”
• Operative EBIT margin improved to 8.3% (6.1%)
Cash flow decreased mainly due to higher capex
• Q4 2011 was positively impacted by hydrogen peroxide divestment in Canada
*After investing activities, excluding interest and taxes
22
Revenue in Q4 2012 increased 5% to EUR 175.4 million (166.6)
• Sales volumes recovered and were higher than in Q4 2011
• Sales prices unchanged
Operative EBIT EUR 7.2 million (9.0) in Q4 2012
• Higher sales volumes
• Higher variable and fixed costs
• Gross margin was negatively impacted by the reduction
of low margin product inventories
• Operative EBIT margin decreased to 4.1% (5.4%)
Positive cash flow
Municipal & Industrial – sales volumes recovered in 2012
(EUR million) Q4/12 Q4/11 % 2012 2011 %
Revenue 175.4 166.6 5 686.6 664.7 3
Operative EBIT 7.2 9.0 -20 42.3 46.9 -10
Operative EBIT, % 4.1 5.4 - 6.2 7.1 -
Cash flow* 21.3 24.3 -12 23.3 41.9 -44
*After investing activities, excluding interest and taxes
23
Oil & Mining – Improved product mix and profitability in 2012
Revenue in Q4 2012 decreased 10% to EUR 72.1 million (80.0)
• -4% impact related to exited low margin products (impact will be fully
accomplished at the end of 2013)
• +1% currency exchange
• Pressure on sales volumes due to temporary market
softness in the Oil and Gas sub-segment in North America
and in the global mining globally
Operative EBIT decreased to EUR 5.8 million (8.5) in Q4 2012
• Lower sales volumes
• Higher fixed costs due to increased sales and marketing activities
• Operative EBIT margin was 8.0% (10.6%)
(EUR million) Q4/12 Q4/11 % 2012 2011 %
Revenue 72.1 80.0 -10 321.1 335.7 -4
Operative EBIT 5.8 8.5 -32 37.3 36.2 3
Operative EBIT, % 8.0 10.6 - 11.6 10.8 -
Cash flow* 5.6 13.4 -58 21.6 28.7 -25
*After investing activities, excluding interest and taxes
Other (ChemSolutions and Group expenses)
ChemSolutions revenue in Q4 2012 was stable at EUR 49.8 million (49.1)
• Slightly higher sales prices
ChemSolutions Operative EBIT was EUR 5.2 million (5.3)
in Q4 2012
• Higher sales prices
• Operative EBIT margin was 10.4% (10.8%)
Group expenses were EUR 3 million higher compared to Q4 2011
(EUR million) Q4/12 Q4/11 % 2012 2011 %
Revenue* 60.7 62.2 -2 231.2 233.5 -1
of which
ChemSolutions
49.8 49.1 1 186.0 183.6 1
Operative EBIT -0.1 2.6 - -11.7 -1.2 -
of which
ChemSolutions
5.2 5.3 -2 14.6 20.8 -30
24
*Including eliminations
As of January 1, 2013, ChemSolutions will be reported as a separate segment together with Paper, Municipal
& Industrial and Oil & Mining. Revenue other than ChemSolutions and all Group expenses will be allocated to
these four segments on a fixed quota basis, and the unit called “Other” will be abolished. Restated figures will
be publicly available before the first quarter result release on April 23, 2013.
EBIT 10% margin achieved through ”Fit for Growth”
restructuring by 2014
1. Redundancies and leaner organization will
contribute 50% to the savings
2. Manufacturing network consolidation: 35%
3. Leaner operation: 15%
Reported between Q3 2012 – Q2 2013:
• EUR 45 million cash cost, mainly for severance
payments, EUR 41 million in 2012
• EUR 40 million, asset write-downs,
EUR 30 million in 2012
25
EUR 60 million
cost savings
EUR 60 million
cost savings
Restructuring
charges of EUR
85 million
Restructuring
charges of EUR
85 million
• ”Fit for Growth” cost savings impact was EUR 10 million in 2012 (EUR 7
million in Q4 2012)
26
Executive overview
Q4 2012
Outlook 2013
0
500
1,000
1,500
2,000
2,500
2009 2010 2011 2012
Fixed costs
Logistics
Energy
Raw materials
Kemira’s business model can cope with changes in its business
environment
70%
20%
10%
Dependent
• More than 75% of Kemira’s revenue has limited exposure to economic cycles
- Most exposed are oil and gas in the US as well as pulp business
• Efficiency improvements carried out to compensate for annual cost inflation
- Kemira fixed costs are about 25% of the revenues
• Oil price has limited direct impact on Kemira’s raw material spend
Oil dependency
(share of raw material spend)
Independent
Indirectly dependent
via feedstock
27
EUR million
Kemira operating expenses
Operative EBIT will be significantly higher in 2013
Revenue in local currencies and excluding divestments expected to
increase 0%-5% in 2013 compared to 2012
-Jan-Dec 2012 revenue: EUR 2,240.9 million
Operative EBIT expected to increase more than 15% in 2013
compared to 2012
- Jan-Dec 2012 operative EBIT: EUR 154.1 million
28
Outlook for 2013
APPENDIX
Creating shareholder value
• ”Fit for Growth” program
• New organization fosters growth in high margin businesses
• Strict cash flow management
• Good funding position
• Relevant financial assets
• Smaller M&A possible also short term, if criteria are all met
• Leverage mature markets with existing strengths
• Well established position in US Oil and Gas markets
• Packaging and Board driving growth in Asia
Substantial
earnings
improvement
potential
Organic
growth
Strong
balance
sheet
• Strong focus on shareholder returns
• 40% - 60% dividend payout policy (based on operative net profit)
30
Consolidating our manufacturing network, 71 sites
31
Site categorization started to enable consolidation of the manufacturing network
- 8 sites and 2 production plants decided to be closed or sold by the end of H1 of 2013*
- We have announced a project aiming to close 2 sites in France and have started the
related co-determination negotiations
- Another 2 sites under review
Coagulants India
Germany
Spain
Europe North America
South America Asia Pacific
Polymers
Common process chemicals and Paper
wet-end chemicals
New production sites under construction
Bleaching chemicals
Nanjing
Sites decided to be closed or sold
* Sevilla, Tarragona old, Flix, Kvarntorp, Houston, Savannah, St Petersburg, Camaçari,
Europoort (M&I), Xoxtla (M&I)
”Fit for Growth” will improve EBIT by EUR 60 million in 2014
EUR million
32
10
50
60
0
10
20
30
40
50
60
70
Savings impact 2012 Savings impact 2013 Savings impact 2014
Realized
savings
• Cost savings impact in operative EBIT 2012 was EUR 10 million
• EUR 5 million impacted variable costs
• EUR 5 million impacted fixed costs
• Expected cost savings impact in operative EBIT 2013 is EUR 50 million
• Expected cost savings impact in operative EBIT 2014 EUR 60 million
Expected
savings
”Fit for Growth” requires EUR 85 million in restructuring costs
EUR million
33
0
5
10
15
20
25
30
35
40
45
Severance payments and
external services 2012
Asset write-downs 2012 Severance payments and
external services 2013
Asset write-downs 2013
Realized
restructuring
charges
• EUR 71 million booked in 2012 and EUR 14 million in H1 2013
• In 2012, restructuring charges amounted to EUR 71 million, of which EUR 41 million related to
severance payments and external services and EUR 30 million to asset write-downs
• Total non-recurring severance payments and external services approximately EUR 45 million
• Total non-recurring asset write-downs approximately EUR 40 million
Expected
restructuring
charges
41
30
4
10
28%
54%
19%
2%
80%
19%
• Principle: Revenues impacted in case of slowdown in the economy;
high correlation (1), medium (0.5) and low (0)
• Higher correlation with slowdown of economy (28%) clearly on
Matured markets; mainly in Oil & Gas and Pulp business portfolio
• 25% of our global business has a high correlation with the impact
of slowdown of economy
Risk of the slowdown of the economy has a different
impact in Mature markets vs. Emerging markets
Mature market revenue
(EUR 1.9 billion sensitivity*)
Emerging market revenue
(EUR 0.3 billion sensitivity*)
Medium
High
Low
*Sensitivity based on management estimate
34
Kemira fixed costs are approximately 25% of revenues
• Fixed costs includes personnel expenses, maintenance cost and leases
• Expected ”Fit for Growth” savings EUR 50 million in 2013
• Efficiency improvements and operating leverage compensating the annual
cost inflation of around 3%
• TOP 10* raw materials account for 45% of raw material spend
EUR million Kemira operating expenses
35
*From 1 to 10: Acrylic Acid, Cationic monomer, Acrylonitrile, Fatty acid, Petroleum solvents, Propionic
acid, Aluminium Hydrate, Sodium hydroxide, Sulphuric acid, Hydrochloric acid
0
500
1,000
1,500
2,000
2,500
2009 2010 2011 2012
Fixed costs
Logistics
Energy
Raw materials
Kemira key ratios
EUR million, except key ratios and personnel Dec, 31
2012
Dec, 31
2011
Capital employed* 1,673 1,705
Operative ROCE, %* 10% 11%
Equity ratio, % at period-end 53% 51%
Gearing, % at period-end 40% 38%
Net debt 532 516
* 12-month rolling average
36
• Inventories were reduced by EUR 46 million during 2012
• Operative ROCE, %, excludes EUR 122 million non-recurring
charges in 2012
• Net debt impacted by dividend payment of EUR 81 in March 2102
Kemira cash flow statement
EUR million Q4
2012
Q4
2011
%
YTD
2012
YTD
2011
%
Operative EBITDA 57.1 59.6 -4 248.0 253.3 -2
Change in net working capital 6.6 37.5 -82 -21.1 -2.7 -
Cash flow from operations 25.8 70.2 -63 176.3 177.7 -1
Capital expenditure -18.5 -93.6 83 -134.1 -201.1 33
Other investing activities 2.1 31.8 -93 29.6 138.7 -79
Cash flow after investing activities 9.4 -27.3 - 71.8 115.3 -38
37

Contenu connexe

Tendances

Electrolux Interim Report Q3 2012 Presentation
Electrolux Interim Report Q3 2012 PresentationElectrolux Interim Report Q3 2012 Presentation
Electrolux Interim Report Q3 2012 PresentationElectrolux Group
 
Electrolux Interim Report Q2 2016 - Presentation
Electrolux Interim Report Q2 2016 - PresentationElectrolux Interim Report Q2 2016 - Presentation
Electrolux Interim Report Q2 2016 - PresentationElectrolux Group
 
Electrolux Interim Report Q3 2016 - Presentation
Electrolux Interim Report Q3 2016 - PresentationElectrolux Interim Report Q3 2016 - Presentation
Electrolux Interim Report Q3 2016 - PresentationElectrolux Group
 
Valmet's Interim Review January-September 2014
Valmet's Interim Review January-September 2014Valmet's Interim Review January-September 2014
Valmet's Interim Review January-September 2014Valmet Oyj
 
Electrolux Interim Report Q2 2015 - Presentation
Electrolux Interim Report Q2 2015 - PresentationElectrolux Interim Report Q2 2015 - Presentation
Electrolux Interim Report Q2 2015 - PresentationElectrolux Group
 
Stora enso financial result q2 2014
Stora enso financial result  q2 2014Stora enso financial result  q2 2014
Stora enso financial result q2 2014Stora Enso
 
Electrolux Interim Report Q2 2013 Presentation
Electrolux Interim Report Q2 2013 PresentationElectrolux Interim Report Q2 2013 Presentation
Electrolux Interim Report Q2 2013 PresentationElectrolux Group
 
Electrolux Investor Day in New York, July 19 2013
Electrolux Investor Day in New York, July 19 2013Electrolux Investor Day in New York, July 19 2013
Electrolux Investor Day in New York, July 19 2013Electrolux Group
 
Electrolux Interim Report Q1 2014 Presentation
Electrolux Interim Report Q1 2014 PresentationElectrolux Interim Report Q1 2014 Presentation
Electrolux Interim Report Q1 2014 PresentationElectrolux Group
 
Electrolux Interim Report Q3 2015 - Presentation
Electrolux Interim Report Q3 2015 - PresentationElectrolux Interim Report Q3 2015 - Presentation
Electrolux Interim Report Q3 2015 - PresentationElectrolux Group
 
Stora enso financial result q1 2015
Stora enso financial result  q1 2015Stora enso financial result  q1 2015
Stora enso financial result q1 2015Stora Enso
 
Stora enso financial result q3 2014
Stora enso financial result  q3 2014Stora enso financial result  q3 2014
Stora enso financial result q3 2014Stora Enso
 
Billerud Interim Report Q4 2011 presentation
Billerud Interim Report Q4 2011 presentationBillerud Interim Report Q4 2011 presentation
Billerud Interim Report Q4 2011 presentationBillerudKorsnäs
 
Electrolux Interim Report Q1 2015 - Presentation
Electrolux Interim Report Q1 2015 - PresentationElectrolux Interim Report Q1 2015 - Presentation
Electrolux Interim Report Q1 2015 - PresentationElectrolux Group
 
Electrolux Interim Report Q1 2016 - Presentation
Electrolux Interim Report Q1 2016 - PresentationElectrolux Interim Report Q1 2016 - Presentation
Electrolux Interim Report Q1 2016 - PresentationElectrolux Group
 
Electrolux consolidated results 2016 - Presentation
Electrolux consolidated results 2016 - PresentationElectrolux consolidated results 2016 - Presentation
Electrolux consolidated results 2016 - PresentationElectrolux Group
 
Electrolux - Interim Report Q3 2017 - Presentation
Electrolux - Interim Report Q3 2017 - PresentationElectrolux - Interim Report Q3 2017 - Presentation
Electrolux - Interim Report Q3 2017 - PresentationElectrolux Group
 
Electrolux Consolidated Results 2013 - Presentation
Electrolux Consolidated Results 2013 - PresentationElectrolux Consolidated Results 2013 - Presentation
Electrolux Consolidated Results 2013 - PresentationElectrolux Group
 
Electrolux Consolidated Results 2015 - Report
Electrolux Consolidated Results 2015 - ReportElectrolux Consolidated Results 2015 - Report
Electrolux Consolidated Results 2015 - ReportElectrolux Group
 
Electrolux Interim Report Q3 2013 Presentation
Electrolux Interim Report Q3 2013 PresentationElectrolux Interim Report Q3 2013 Presentation
Electrolux Interim Report Q3 2013 PresentationElectrolux Group
 

Tendances (20)

Electrolux Interim Report Q3 2012 Presentation
Electrolux Interim Report Q3 2012 PresentationElectrolux Interim Report Q3 2012 Presentation
Electrolux Interim Report Q3 2012 Presentation
 
Electrolux Interim Report Q2 2016 - Presentation
Electrolux Interim Report Q2 2016 - PresentationElectrolux Interim Report Q2 2016 - Presentation
Electrolux Interim Report Q2 2016 - Presentation
 
Electrolux Interim Report Q3 2016 - Presentation
Electrolux Interim Report Q3 2016 - PresentationElectrolux Interim Report Q3 2016 - Presentation
Electrolux Interim Report Q3 2016 - Presentation
 
Valmet's Interim Review January-September 2014
Valmet's Interim Review January-September 2014Valmet's Interim Review January-September 2014
Valmet's Interim Review January-September 2014
 
Electrolux Interim Report Q2 2015 - Presentation
Electrolux Interim Report Q2 2015 - PresentationElectrolux Interim Report Q2 2015 - Presentation
Electrolux Interim Report Q2 2015 - Presentation
 
Stora enso financial result q2 2014
Stora enso financial result  q2 2014Stora enso financial result  q2 2014
Stora enso financial result q2 2014
 
Electrolux Interim Report Q2 2013 Presentation
Electrolux Interim Report Q2 2013 PresentationElectrolux Interim Report Q2 2013 Presentation
Electrolux Interim Report Q2 2013 Presentation
 
Electrolux Investor Day in New York, July 19 2013
Electrolux Investor Day in New York, July 19 2013Electrolux Investor Day in New York, July 19 2013
Electrolux Investor Day in New York, July 19 2013
 
Electrolux Interim Report Q1 2014 Presentation
Electrolux Interim Report Q1 2014 PresentationElectrolux Interim Report Q1 2014 Presentation
Electrolux Interim Report Q1 2014 Presentation
 
Electrolux Interim Report Q3 2015 - Presentation
Electrolux Interim Report Q3 2015 - PresentationElectrolux Interim Report Q3 2015 - Presentation
Electrolux Interim Report Q3 2015 - Presentation
 
Stora enso financial result q1 2015
Stora enso financial result  q1 2015Stora enso financial result  q1 2015
Stora enso financial result q1 2015
 
Stora enso financial result q3 2014
Stora enso financial result  q3 2014Stora enso financial result  q3 2014
Stora enso financial result q3 2014
 
Billerud Interim Report Q4 2011 presentation
Billerud Interim Report Q4 2011 presentationBillerud Interim Report Q4 2011 presentation
Billerud Interim Report Q4 2011 presentation
 
Electrolux Interim Report Q1 2015 - Presentation
Electrolux Interim Report Q1 2015 - PresentationElectrolux Interim Report Q1 2015 - Presentation
Electrolux Interim Report Q1 2015 - Presentation
 
Electrolux Interim Report Q1 2016 - Presentation
Electrolux Interim Report Q1 2016 - PresentationElectrolux Interim Report Q1 2016 - Presentation
Electrolux Interim Report Q1 2016 - Presentation
 
Electrolux consolidated results 2016 - Presentation
Electrolux consolidated results 2016 - PresentationElectrolux consolidated results 2016 - Presentation
Electrolux consolidated results 2016 - Presentation
 
Electrolux - Interim Report Q3 2017 - Presentation
Electrolux - Interim Report Q3 2017 - PresentationElectrolux - Interim Report Q3 2017 - Presentation
Electrolux - Interim Report Q3 2017 - Presentation
 
Electrolux Consolidated Results 2013 - Presentation
Electrolux Consolidated Results 2013 - PresentationElectrolux Consolidated Results 2013 - Presentation
Electrolux Consolidated Results 2013 - Presentation
 
Electrolux Consolidated Results 2015 - Report
Electrolux Consolidated Results 2015 - ReportElectrolux Consolidated Results 2015 - Report
Electrolux Consolidated Results 2015 - Report
 
Electrolux Interim Report Q3 2013 Presentation
Electrolux Interim Report Q3 2013 PresentationElectrolux Interim Report Q3 2013 Presentation
Electrolux Interim Report Q3 2013 Presentation
 

En vedette

Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011
Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011
Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011Seanergies
 
Kemira Oyj Interim Report Q3/2011
Kemira Oyj Interim Report Q3/2011Kemira Oyj Interim Report Q3/2011
Kemira Oyj Interim Report Q3/2011Kemira Oyj
 
How To Flash Xbox 360 Firmware Tutorial by mksoftware
How To Flash Xbox 360 Firmware Tutorial by mksoftwareHow To Flash Xbox 360 Firmware Tutorial by mksoftware
How To Flash Xbox 360 Firmware Tutorial by mksoftwareSlamet Purwanto
 
Evolution notesbiodiversity Notes
Evolution notesbiodiversity NotesEvolution notesbiodiversity Notes
Evolution notesbiodiversity Noteskleinkea
 
Agile sparks 2012 ux-vision - agile an ux - emenies or friends
Agile sparks 2012   ux-vision - agile an ux - emenies or friendsAgile sparks 2012   ux-vision - agile an ux - emenies or friends
Agile sparks 2012 ux-vision - agile an ux - emenies or friendsTAL FLORENTIN
 
Nascom update 1 - Warm welcome
Nascom update 1 - Warm welcomeNascom update 1 - Warm welcome
Nascom update 1 - Warm welcomeNascom
 
архитектура архитектура ленинградского авангарда
архитектура архитектура ленинградского авангардаархитектура архитектура ленинградского авангарда
архитектура архитектура ленинградского авангардаДенис Семыкин
 
архитектура Cities of-opportunity
архитектура Cities of-opportunityархитектура Cities of-opportunity
архитектура Cities of-opportunityДенис Семыкин
 
независимый взгляд на будущее наших главных улиц МЭРИ ПОРТАС
независимый взгляд на будущее наших главных улиц МЭРИ ПОРТАСнезависимый взгляд на будущее наших главных улиц МЭРИ ПОРТАС
независимый взгляд на будущее наших главных улиц МЭРИ ПОРТАСДенис Семыкин
 
Engl1 find country information
Engl1 find country information Engl1 find country information
Engl1 find country information gbeeler
 
архитектура сабади солнечный дом 1981
архитектура сабади солнечный дом 1981архитектура сабади солнечный дом 1981
архитектура сабади солнечный дом 1981Денис Семыкин
 
Rotational motion pt1
Rotational motion pt1Rotational motion pt1
Rotational motion pt1stephm32
 
Training Workshops Attended By Tania Saleem
Training Workshops Attended By Tania SaleemTraining Workshops Attended By Tania Saleem
Training Workshops Attended By Tania SaleemTania Saleem
 
Zoology review final
Zoology review finalZoology review final
Zoology review finalkleinkea
 
Cell membranes
Cell membranesCell membranes
Cell membraneskleinkea
 

En vedette (20)

Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011
Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011
Future of Renewables Cyprus - Poullikkas_CyI_14Oct2011
 
Kemira Oyj Interim Report Q3/2011
Kemira Oyj Interim Report Q3/2011Kemira Oyj Interim Report Q3/2011
Kemira Oyj Interim Report Q3/2011
 
How To Flash Xbox 360 Firmware Tutorial by mksoftware
How To Flash Xbox 360 Firmware Tutorial by mksoftwareHow To Flash Xbox 360 Firmware Tutorial by mksoftware
How To Flash Xbox 360 Firmware Tutorial by mksoftware
 
Lola
LolaLola
Lola
 
Evolution notesbiodiversity Notes
Evolution notesbiodiversity NotesEvolution notesbiodiversity Notes
Evolution notesbiodiversity Notes
 
Agile sparks 2012 ux-vision - agile an ux - emenies or friends
Agile sparks 2012   ux-vision - agile an ux - emenies or friendsAgile sparks 2012   ux-vision - agile an ux - emenies or friends
Agile sparks 2012 ux-vision - agile an ux - emenies or friends
 
Nascom update 1 - Warm welcome
Nascom update 1 - Warm welcomeNascom update 1 - Warm welcome
Nascom update 1 - Warm welcome
 
архитектура архитектура ленинградского авангарда
архитектура архитектура ленинградского авангардаархитектура архитектура ленинградского авангарда
архитектура архитектура ленинградского авангарда
 
архитектура Cities of-opportunity
архитектура Cities of-opportunityархитектура Cities of-opportunity
архитектура Cities of-opportunity
 
независимый взгляд на будущее наших главных улиц МЭРИ ПОРТАС
независимый взгляд на будущее наших главных улиц МЭРИ ПОРТАСнезависимый взгляд на будущее наших главных улиц МЭРИ ПОРТАС
независимый взгляд на будущее наших главных улиц МЭРИ ПОРТАС
 
Poesiabilhete i
Poesiabilhete  iPoesiabilhete  i
Poesiabilhete i
 
Dpj resposta
Dpj   respostaDpj   resposta
Dpj resposta
 
Engl1 find country information
Engl1 find country information Engl1 find country information
Engl1 find country information
 
архитектура сабади солнечный дом 1981
архитектура сабади солнечный дом 1981архитектура сабади солнечный дом 1981
архитектура сабади солнечный дом 1981
 
Dresden
DresdenDresden
Dresden
 
Rotational motion pt1
Rotational motion pt1Rotational motion pt1
Rotational motion pt1
 
Crm
CrmCrm
Crm
 
Training Workshops Attended By Tania Saleem
Training Workshops Attended By Tania SaleemTraining Workshops Attended By Tania Saleem
Training Workshops Attended By Tania Saleem
 
Zoology review final
Zoology review finalZoology review final
Zoology review final
 
Cell membranes
Cell membranesCell membranes
Cell membranes
 

Similaire à Kemira q4 2012 presentation

AkzoNobel Q2 2013 Investor Presentation
AkzoNobel Q2 2013 Investor PresentationAkzoNobel Q2 2013 Investor Presentation
AkzoNobel Q2 2013 Investor PresentationAkzoNobel
 
Metso January-June 2013 Interim review presentation
Metso January-June 2013 Interim review presentationMetso January-June 2013 Interim review presentation
Metso January-June 2013 Interim review presentationMetso Group
 
Ahlstrom Q2/2016 interim report
Ahlstrom Q2/2016 interim reportAhlstrom Q2/2016 interim report
Ahlstrom Q2/2016 interim reportAhlstrom-Munksjö
 
AkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media PresentationAkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media PresentationAkzoNobel N.V.
 
AkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media PresentationAkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media PresentationAkzoNobel
 
AkzoNobel Investor Update Q2 2014 results
AkzoNobel Investor Update Q2 2014 resultsAkzoNobel Investor Update Q2 2014 results
AkzoNobel Investor Update Q2 2014 resultsAkzoNobel
 
2013 H1 results presentation
2013 H1 results presentation2013 H1 results presentation
2013 H1 results presentationUmicore
 
Kemira Q1 2013 Interim Report
Kemira Q1 2013 Interim ReportKemira Q1 2013 Interim Report
Kemira Q1 2013 Interim ReportKemira Oyj
 
Kemira cmd-2013-presentation
Kemira cmd-2013-presentationKemira cmd-2013-presentation
Kemira cmd-2013-presentationKemira Oyj
 
AkzoNobel Q4 and Full Year 2013 Results Investor Update Presentation
AkzoNobel Q4 and Full Year 2013 Results Investor Update PresentationAkzoNobel Q4 and Full Year 2013 Results Investor Update Presentation
AkzoNobel Q4 and Full Year 2013 Results Investor Update PresentationAkzoNobel
 
AkzoNobel Q3 2014 Media presentation
AkzoNobel Q3 2014 Media presentationAkzoNobel Q3 2014 Media presentation
AkzoNobel Q3 2014 Media presentationAkzoNobel
 
AkzoNobel Q1 2013 Investor Presentation
AkzoNobel Q1 2013 Investor PresentationAkzoNobel Q1 2013 Investor Presentation
AkzoNobel Q1 2013 Investor PresentationAkzoNobel
 
CMD 2013: Financial update
CMD 2013: Financial updateCMD 2013: Financial update
CMD 2013: Financial updateValmet Oyj
 
AkzoNobel Q2 2014 Media presentation
AkzoNobel Q2 2014 Media presentationAkzoNobel Q2 2014 Media presentation
AkzoNobel Q2 2014 Media presentationAkzoNobel
 
AkzoNobel Q3 2015 results Investor update presentation
AkzoNobel Q3 2015 results Investor update presentationAkzoNobel Q3 2015 results Investor update presentation
AkzoNobel Q3 2015 results Investor update presentationAkzoNobel
 
CEO's presentation March 21, 2018
CEO's presentation March 21, 2018CEO's presentation March 21, 2018
CEO's presentation March 21, 2018Ahlstrom-Munksjö
 
Metso Financial Statements Review 2012
Metso Financial Statements Review 2012Metso Financial Statements Review 2012
Metso Financial Statements Review 2012Metso Group
 
Ahlstrom-Munksjö Q2/2017 interim report presentation
Ahlstrom-Munksjö Q2/2017 interim report presentationAhlstrom-Munksjö Q2/2017 interim report presentation
Ahlstrom-Munksjö Q2/2017 interim report presentationAhlstrom-Munksjö
 
AkzoNobel Q2 2015 results Investor Update Presentation
AkzoNobel Q2 2015 results Investor Update PresentationAkzoNobel Q2 2015 results Investor Update Presentation
AkzoNobel Q2 2015 results Investor Update PresentationAkzoNobel N.V.
 

Similaire à Kemira q4 2012 presentation (20)

AkzoNobel Q2 2013 Investor Presentation
AkzoNobel Q2 2013 Investor PresentationAkzoNobel Q2 2013 Investor Presentation
AkzoNobel Q2 2013 Investor Presentation
 
Metso January-June 2013 Interim review presentation
Metso January-June 2013 Interim review presentationMetso January-June 2013 Interim review presentation
Metso January-June 2013 Interim review presentation
 
Ahlstrom Q2/2016 interim report
Ahlstrom Q2/2016 interim reportAhlstrom Q2/2016 interim report
Ahlstrom Q2/2016 interim report
 
AkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media PresentationAkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media Presentation
 
AkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media PresentationAkzoNobel Q3 2013 Media Presentation
AkzoNobel Q3 2013 Media Presentation
 
AkzoNobel Investor Update Q2 2014 results
AkzoNobel Investor Update Q2 2014 resultsAkzoNobel Investor Update Q2 2014 results
AkzoNobel Investor Update Q2 2014 results
 
2013 H1 results presentation
2013 H1 results presentation2013 H1 results presentation
2013 H1 results presentation
 
Kemira Q1 2013 Interim Report
Kemira Q1 2013 Interim ReportKemira Q1 2013 Interim Report
Kemira Q1 2013 Interim Report
 
Kemira cmd-2013-presentation
Kemira cmd-2013-presentationKemira cmd-2013-presentation
Kemira cmd-2013-presentation
 
AkzoNobel Q4 and Full Year 2013 Results Investor Update Presentation
AkzoNobel Q4 and Full Year 2013 Results Investor Update PresentationAkzoNobel Q4 and Full Year 2013 Results Investor Update Presentation
AkzoNobel Q4 and Full Year 2013 Results Investor Update Presentation
 
AkzoNobel Q3 2014 Media presentation
AkzoNobel Q3 2014 Media presentationAkzoNobel Q3 2014 Media presentation
AkzoNobel Q3 2014 Media presentation
 
AkzoNobel Q1 2013 Investor Presentation
AkzoNobel Q1 2013 Investor PresentationAkzoNobel Q1 2013 Investor Presentation
AkzoNobel Q1 2013 Investor Presentation
 
CMD 2013: Financial update
CMD 2013: Financial updateCMD 2013: Financial update
CMD 2013: Financial update
 
AkzoNobel Q2 2014 Media presentation
AkzoNobel Q2 2014 Media presentationAkzoNobel Q2 2014 Media presentation
AkzoNobel Q2 2014 Media presentation
 
Q3
Q3Q3
Q3
 
AkzoNobel Q3 2015 results Investor update presentation
AkzoNobel Q3 2015 results Investor update presentationAkzoNobel Q3 2015 results Investor update presentation
AkzoNobel Q3 2015 results Investor update presentation
 
CEO's presentation March 21, 2018
CEO's presentation March 21, 2018CEO's presentation March 21, 2018
CEO's presentation March 21, 2018
 
Metso Financial Statements Review 2012
Metso Financial Statements Review 2012Metso Financial Statements Review 2012
Metso Financial Statements Review 2012
 
Ahlstrom-Munksjö Q2/2017 interim report presentation
Ahlstrom-Munksjö Q2/2017 interim report presentationAhlstrom-Munksjö Q2/2017 interim report presentation
Ahlstrom-Munksjö Q2/2017 interim report presentation
 
AkzoNobel Q2 2015 results Investor Update Presentation
AkzoNobel Q2 2015 results Investor Update PresentationAkzoNobel Q2 2015 results Investor Update Presentation
AkzoNobel Q2 2015 results Investor Update Presentation
 

Kemira q4 2012 presentation

  • 1. Kemira January-December 2012: Year of change Wolfgang Büchele, President & CEO February 6, 2013
  • 3. Satisfactory financial performance in 2012 3 Revenue EUR 2,240.9 million (2,207.2 in 2011), +2% - Revenue in emerging markets grew 9%, driven by Paper in APAC region Operative EBIT EUR 154.1 million (157.3), -2% - Operative EBIT margin 6.9% (7.1%) - ”Fit for Growth” launched in July 2012, to reach 10% EBIT margin in 2014 Operative earnings per share EUR 0.77 (0.89) - Lower income from associated companies had EUR 0.13 negative impact Board of Directors proposes EUR 0.53 dividend (0.53), 69% payout ratio (60%) Cash flow after investing activities EUR 71.8 million (115.3)
  • 4. New organization in operation since October, 2012 - Accelerating growth, reducing complexity - New performance management system introduced to focus the whole organization on value creation Personnel reduction - Up to 600 employees, 12% of the total workforce - Most of the co-determination negotiations have been accomplished Manufacturing network optimization - Almost 20% of all production sites either decided to be closed or under review Leaner operation - NWC* ratio target is 11% in 2014 (12.8% in 2012) Sharpened strategy will be presented in April, 2013 4 Significant structural change ongoing *Net working capital
  • 5. 5 Kemira operative EBIT margin trend by segments ”Fit for Growth” launched to improve profitability • Product mix optimization and growth driving profitability improvement in Paper and in Oil & Mining • Implemented cost savings and efficiency improvements will boost margins in Municipal & Industrial and ChemSolutions 2% 4% 6% 8% 10% 12% 14% 16% 2009 2010 2011 2012 Paper Municipal & Industrial Oil & Mining ChemSolutions EBIT margin target
  • 6. Municipal & Industrial - ”Fit for Growth” to drive profitability turnaround 6 • Manufacturing network optimization reduces cost volatility • Cost savings through site closures, M&I operates at 40 sites (over 20% of the sites decided to be closed, sold or under review) • Customer segmentation improves efficiency • Q1 2012 negatively impacted by higher maintenance costs, Q4 2012 by clearance of inventory of low-margin products EUR million Industrial Municipal Municipal & Industrial segment revenue split and operative EBIT margin 10.9 % 9.2 % 7.1 % 6.2 % 0% 2% 4% 6% 8% 10% 12% 0 100 200 300 400 500 600 700 800 2009 2010 2011 2012
  • 7. Municipal & Industrial is currently optimizing the production footprint for inorganic coagulants 7 … in order to increase profitability Best use of available cheap raw materials Coagulant production footprint optimization… Raw material* costs Raw material* costs Fixed costs of plants Fixed costs of plants Freights to customers Freights to customers Minimize + + • New site investments in Tarragona & Dormagen will yield quick returns thanks to improved network optimization. Fixed costs will be reduced by 40% and raw material costs are expected to decline by 20% in the specific market region Access to raw materials Access to raw materials Reduced cost of footprint Reduced cost of footprint Delivery to customers Delivery to customers High freights require plants to be close to customer clusters Close plants to reduce overcapacity in network *Copperas, magnetite, scrap iron, spent pickling liquor, liquid chlorine, sulphuric acid, hydrochloric acid
  • 8. ChemSolutions - ”Fit for Growth” will improve profitability • Raw material prices and maintenance shutdown impacted profitability in 2012 • “Fit for Growth” to return profitability above 10% EBIT margin by 2014 • Focus on formic acid and related derivatives • Maximize output of Kemira’s formic acid plant in Oulu 8 EUR million ChemSolutions revenue* split and operative EBIT margin 14.3 % 15.0 % 11.3 % 7.8 % 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 20 40 60 80 100 120 140 160 180 200 2009 2010 2011 2012 De-icers Chemical & Pharma Food & Feed *Divestment of food and pharmaceutical businesses will have approximately EUR 50 million impact on revenue in 2013
  • 9. Kemira target is to reduce 50% of the total # of SKU’s* 9 • SKU reduction as part of the focus on lean operation will lead to significant cost savings • In ChemSolutions’ Oulu formic acid plant 70% SKU reduction was identified leading to EUR 2 million annual EBIT improvement • SKU reduction in Oulu accomplished by merging trade names and deleting small SKUs -70% reduction ChemSolutions portfolio *Stock-keeping units Kemira SKU reduction target Oulu SKU reduction target # of SKU’s in 2014 Current # of SKU’s # of SKU’s in 2014
  • 10. Paper – Packaging and board driving growth 10 • Over 5% market growth* in APAC (Packaging and Board) and SA (Pulp) • Newsprint share of Paper segment revenue less than 4% • Tissue and fiber based packaging markets are expected to grow over 4%* • Trend towards recycled fiber and lighter paper qualities will increase the chemicals consumption Paper segment revenue split and operative EBIT margin Tissues and specialties Packaging and board Printing and writing Pulp EUR million 5.0% 7.7% 7.7% 8.6% 2% 4% 6% 8% 10% 0 200 400 600 800 1000 1200 2009 2010 2011 2012 24% 31% *Expected market growth 2013-2020
  • 11. Understanding customers’ needs is a key competitive advantage 11 • Kemira’s Fennobond enables yield advantage resulting in 5%-10 % lighter* end customer product • Chemicals helps customers to optimize their raw material use e.g fiber consumption • Customers’ process efficiency improves by using right chemistry *Source: MetsäBoard …10,000 miles later
  • 12. Oil & Mining – Good base for growth 12 • Atlanta R&D center ensuring continuous competence development • 60% polymer capacity expansion finalized at the end of 2012 • Small acquisitions targeted to gain stronger market position • Portfolio rebalancing by exiting low-margin product sales to be finalized by the end of 2013 (approximately EUR 10 million negative impact in 2013) EUR million Oil & Mining segment revenue and operative EBIT margin 6.0 % 9.6 % 10.8 % 11.6 % 2% 4% 6% 8% 10% 12% 14% 0 50 100 150 200 250 300 350 2009 2010 2011 2012
  • 13. 13 Revenue growth generated through new innovative solutions • New product and application sales* generated EUR 106 million in 2012 (40 in 2011) - New products and product applications on average generate 15% higher gross margin - Most of the new sales in 2012 from oil and gas, as well as tissue customer segments • Kemira spends roughly 2% of its revenue on R&D *New product and application sales = products and applications launched within the past 5 years Revenue 2011 New product and product applications Other growth O&M product exit Divestments Revenue 2012 EUR million 2,207 66 11 -20 -23 2,241
  • 15. Kemira financial highlights – Q4 2012 EUR million Oct-Dec 2012 Oct-Dec 2011 % Jan-Dec 2012 Jan-Dec 2011 % Revenue 558.5 543.3 3 2,240.9 2,207.2 2 Operative EBIT 33.7 34.3 -2 154.1 157.3 -2 Operative EBIT, % 6.0 6.3 - 6.9 7.1 - Income from associated companies -5.7 7.2 - 11.2 31.0 -64 Financial income and expenses -4.1 -5.5 - -15.7 -20.9 - Operative EPS, EUR 0.13 0.24 -46 0.77 0.89 -13 Cash flow after financing activities 9.4 -27.3 - 71.8 115.3 -38 Number of personnel 4,857 5,006 -3 4,857 5,006 -3 15 • Revenue increased 3% to EUR 558.5 million (543.3) - Sales volumes increased in Paper and Municipal & Industrial segments • Fixed costs increased EUR 7 million despite ”Fit for Growth” savings • Operative EPS decreased due to EUR -5.7 million loss from JV Sachtleben • Cash flow after financing activities was positive as a result of net working capital reduction • Some 40% of the employees already made redundant are still on the payroll
  • 16. Kemira Group revenue growth trend 16 ‐15% ‐10% ‐5% 0% 5% 10% 15% 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 Sales volumes and prices Divestments Acquisitions Currency Total growth • Q4 2012 sales prices slightly higher year-on-year - Paper, Oil & Mining and ChemSolutions increased sales prices • Q4 2012 sales volumes grew vs Q4 2011 due to recovered demand in Paper and M&I • Reported revenue has been supported by favorable currency exchange in 2012
  • 17. Good balance between sales and raw material prices -150 -100 -50 0 50 100 150 200 Q4/2007 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Brent oil, USD Sales price* Variable costs* 17 Largest product categories (accounting for ~55% of Kemira’s revenue) and most relevant businesses: - Polymers: Oil & Mining, Paper wet-end and industrial customer segment - Electrolysis products: pulp customer segment - Coagulants: municipal customer segment *12-month rolling change vs previous year, meur, excl. Tikkurila and Pigments Kemira sales prices vs variable costs
  • 18. Q4 2011 Sales volumes and prices Variable costs Fixed costs Currency impact Others, incl. acquisitions and divestments Q4 2012 EUR million 34.3 10 -4 -7 1 -1 33.7 Kemira operative EBIT Q4 2012 vs Q4 2011 18 • Positive effect derived from higher sales volumes and sales prices was offset by higher variable and fixed costs
  • 19. Q4 2011 fixed costs Wages and salaries Pension costs Reclassification of variable costs Maintenance costs Emerging markets resources "Fit for Growth" fixed costs Q4 2012 fixed costs EUR million 3 4 1 1 2 Kemira fixed costs in Q4 2012 vs Q4 2011 19 -4 • Fixed costs increased EUR 7 million in Q4 2012 vs Q4 2011 • Exceptional high pension credits of EUR 4 million 2011 combined with higher headcount (mainly APAC,SA) EUR 2 million and cost inflation in wages and salaries EUR 3 million was partly compensated by ”Fit for Growth” savings.
  • 20. 2011 fixed costs Wages and salaries Pension costs Reclassification of variable costs Maintenance costs in H1 2012 Emerging markets resources "Fit for Growth" fixed costs 2012 fixed costs EUR million 7 4 3 3 3 Kemira fixed costs 2012 vs 2011 20 -5 • Fixed costs increased EUR 15 million in 2012 • H1 2012 fixed costs were EUR 13 million higher due to higher maintenance and personnel expenses • H2 2012 fixed costs EUR 2 million higher despite ”Fit for Growth” cost savings
  • 21. Paper – EUR 1 billion revenue and improved profitability in 2012 21 (EUR million) Q4/12 Q4/11 % 2012 2011 % Revenue 250.3 234.5 7 1,002.0 973.3 3 Operative EBIT 20.8 14.2 46 86.2 75.4 14 Operative EBIT, % 8.3 6.1 - 8.6 7.7 - Cash flow* -3.4 38.8 - 30.6 90.9 -66 Revenue increased by 7% vs. Q4/2011 • Reported revenue grew in all sub-segments • Recovered demand in pulp, increased sales prices to printing and writing • Currency exchange +2% • Divestments -1% Operative EBIT in Q4 2012 increased 46% to EUR 20.8 million (14.2) • Organic revenue growth • Efficiency improvements and ”Fit for Growth” • Operative EBIT margin improved to 8.3% (6.1%) Cash flow decreased mainly due to higher capex • Q4 2011 was positively impacted by hydrogen peroxide divestment in Canada *After investing activities, excluding interest and taxes
  • 22. 22 Revenue in Q4 2012 increased 5% to EUR 175.4 million (166.6) • Sales volumes recovered and were higher than in Q4 2011 • Sales prices unchanged Operative EBIT EUR 7.2 million (9.0) in Q4 2012 • Higher sales volumes • Higher variable and fixed costs • Gross margin was negatively impacted by the reduction of low margin product inventories • Operative EBIT margin decreased to 4.1% (5.4%) Positive cash flow Municipal & Industrial – sales volumes recovered in 2012 (EUR million) Q4/12 Q4/11 % 2012 2011 % Revenue 175.4 166.6 5 686.6 664.7 3 Operative EBIT 7.2 9.0 -20 42.3 46.9 -10 Operative EBIT, % 4.1 5.4 - 6.2 7.1 - Cash flow* 21.3 24.3 -12 23.3 41.9 -44 *After investing activities, excluding interest and taxes
  • 23. 23 Oil & Mining – Improved product mix and profitability in 2012 Revenue in Q4 2012 decreased 10% to EUR 72.1 million (80.0) • -4% impact related to exited low margin products (impact will be fully accomplished at the end of 2013) • +1% currency exchange • Pressure on sales volumes due to temporary market softness in the Oil and Gas sub-segment in North America and in the global mining globally Operative EBIT decreased to EUR 5.8 million (8.5) in Q4 2012 • Lower sales volumes • Higher fixed costs due to increased sales and marketing activities • Operative EBIT margin was 8.0% (10.6%) (EUR million) Q4/12 Q4/11 % 2012 2011 % Revenue 72.1 80.0 -10 321.1 335.7 -4 Operative EBIT 5.8 8.5 -32 37.3 36.2 3 Operative EBIT, % 8.0 10.6 - 11.6 10.8 - Cash flow* 5.6 13.4 -58 21.6 28.7 -25 *After investing activities, excluding interest and taxes
  • 24. Other (ChemSolutions and Group expenses) ChemSolutions revenue in Q4 2012 was stable at EUR 49.8 million (49.1) • Slightly higher sales prices ChemSolutions Operative EBIT was EUR 5.2 million (5.3) in Q4 2012 • Higher sales prices • Operative EBIT margin was 10.4% (10.8%) Group expenses were EUR 3 million higher compared to Q4 2011 (EUR million) Q4/12 Q4/11 % 2012 2011 % Revenue* 60.7 62.2 -2 231.2 233.5 -1 of which ChemSolutions 49.8 49.1 1 186.0 183.6 1 Operative EBIT -0.1 2.6 - -11.7 -1.2 - of which ChemSolutions 5.2 5.3 -2 14.6 20.8 -30 24 *Including eliminations As of January 1, 2013, ChemSolutions will be reported as a separate segment together with Paper, Municipal & Industrial and Oil & Mining. Revenue other than ChemSolutions and all Group expenses will be allocated to these four segments on a fixed quota basis, and the unit called “Other” will be abolished. Restated figures will be publicly available before the first quarter result release on April 23, 2013.
  • 25. EBIT 10% margin achieved through ”Fit for Growth” restructuring by 2014 1. Redundancies and leaner organization will contribute 50% to the savings 2. Manufacturing network consolidation: 35% 3. Leaner operation: 15% Reported between Q3 2012 – Q2 2013: • EUR 45 million cash cost, mainly for severance payments, EUR 41 million in 2012 • EUR 40 million, asset write-downs, EUR 30 million in 2012 25 EUR 60 million cost savings EUR 60 million cost savings Restructuring charges of EUR 85 million Restructuring charges of EUR 85 million • ”Fit for Growth” cost savings impact was EUR 10 million in 2012 (EUR 7 million in Q4 2012)
  • 27. 0 500 1,000 1,500 2,000 2,500 2009 2010 2011 2012 Fixed costs Logistics Energy Raw materials Kemira’s business model can cope with changes in its business environment 70% 20% 10% Dependent • More than 75% of Kemira’s revenue has limited exposure to economic cycles - Most exposed are oil and gas in the US as well as pulp business • Efficiency improvements carried out to compensate for annual cost inflation - Kemira fixed costs are about 25% of the revenues • Oil price has limited direct impact on Kemira’s raw material spend Oil dependency (share of raw material spend) Independent Indirectly dependent via feedstock 27 EUR million Kemira operating expenses
  • 28. Operative EBIT will be significantly higher in 2013 Revenue in local currencies and excluding divestments expected to increase 0%-5% in 2013 compared to 2012 -Jan-Dec 2012 revenue: EUR 2,240.9 million Operative EBIT expected to increase more than 15% in 2013 compared to 2012 - Jan-Dec 2012 operative EBIT: EUR 154.1 million 28 Outlook for 2013
  • 30. Creating shareholder value • ”Fit for Growth” program • New organization fosters growth in high margin businesses • Strict cash flow management • Good funding position • Relevant financial assets • Smaller M&A possible also short term, if criteria are all met • Leverage mature markets with existing strengths • Well established position in US Oil and Gas markets • Packaging and Board driving growth in Asia Substantial earnings improvement potential Organic growth Strong balance sheet • Strong focus on shareholder returns • 40% - 60% dividend payout policy (based on operative net profit) 30
  • 31. Consolidating our manufacturing network, 71 sites 31 Site categorization started to enable consolidation of the manufacturing network - 8 sites and 2 production plants decided to be closed or sold by the end of H1 of 2013* - We have announced a project aiming to close 2 sites in France and have started the related co-determination negotiations - Another 2 sites under review Coagulants India Germany Spain Europe North America South America Asia Pacific Polymers Common process chemicals and Paper wet-end chemicals New production sites under construction Bleaching chemicals Nanjing Sites decided to be closed or sold * Sevilla, Tarragona old, Flix, Kvarntorp, Houston, Savannah, St Petersburg, Camaçari, Europoort (M&I), Xoxtla (M&I)
  • 32. ”Fit for Growth” will improve EBIT by EUR 60 million in 2014 EUR million 32 10 50 60 0 10 20 30 40 50 60 70 Savings impact 2012 Savings impact 2013 Savings impact 2014 Realized savings • Cost savings impact in operative EBIT 2012 was EUR 10 million • EUR 5 million impacted variable costs • EUR 5 million impacted fixed costs • Expected cost savings impact in operative EBIT 2013 is EUR 50 million • Expected cost savings impact in operative EBIT 2014 EUR 60 million Expected savings
  • 33. ”Fit for Growth” requires EUR 85 million in restructuring costs EUR million 33 0 5 10 15 20 25 30 35 40 45 Severance payments and external services 2012 Asset write-downs 2012 Severance payments and external services 2013 Asset write-downs 2013 Realized restructuring charges • EUR 71 million booked in 2012 and EUR 14 million in H1 2013 • In 2012, restructuring charges amounted to EUR 71 million, of which EUR 41 million related to severance payments and external services and EUR 30 million to asset write-downs • Total non-recurring severance payments and external services approximately EUR 45 million • Total non-recurring asset write-downs approximately EUR 40 million Expected restructuring charges 41 30 4 10
  • 34. 28% 54% 19% 2% 80% 19% • Principle: Revenues impacted in case of slowdown in the economy; high correlation (1), medium (0.5) and low (0) • Higher correlation with slowdown of economy (28%) clearly on Matured markets; mainly in Oil & Gas and Pulp business portfolio • 25% of our global business has a high correlation with the impact of slowdown of economy Risk of the slowdown of the economy has a different impact in Mature markets vs. Emerging markets Mature market revenue (EUR 1.9 billion sensitivity*) Emerging market revenue (EUR 0.3 billion sensitivity*) Medium High Low *Sensitivity based on management estimate 34
  • 35. Kemira fixed costs are approximately 25% of revenues • Fixed costs includes personnel expenses, maintenance cost and leases • Expected ”Fit for Growth” savings EUR 50 million in 2013 • Efficiency improvements and operating leverage compensating the annual cost inflation of around 3% • TOP 10* raw materials account for 45% of raw material spend EUR million Kemira operating expenses 35 *From 1 to 10: Acrylic Acid, Cationic monomer, Acrylonitrile, Fatty acid, Petroleum solvents, Propionic acid, Aluminium Hydrate, Sodium hydroxide, Sulphuric acid, Hydrochloric acid 0 500 1,000 1,500 2,000 2,500 2009 2010 2011 2012 Fixed costs Logistics Energy Raw materials
  • 36. Kemira key ratios EUR million, except key ratios and personnel Dec, 31 2012 Dec, 31 2011 Capital employed* 1,673 1,705 Operative ROCE, %* 10% 11% Equity ratio, % at period-end 53% 51% Gearing, % at period-end 40% 38% Net debt 532 516 * 12-month rolling average 36 • Inventories were reduced by EUR 46 million during 2012 • Operative ROCE, %, excludes EUR 122 million non-recurring charges in 2012 • Net debt impacted by dividend payment of EUR 81 in March 2102
  • 37. Kemira cash flow statement EUR million Q4 2012 Q4 2011 % YTD 2012 YTD 2011 % Operative EBITDA 57.1 59.6 -4 248.0 253.3 -2 Change in net working capital 6.6 37.5 -82 -21.1 -2.7 - Cash flow from operations 25.8 70.2 -63 176.3 177.7 -1 Capital expenditure -18.5 -93.6 83 -134.1 -201.1 33 Other investing activities 2.1 31.8 -93 29.6 138.7 -79 Cash flow after investing activities 9.4 -27.3 - 71.8 115.3 -38 37