Kemira Oyj
Stock Exchange Release
September 9, 2014 at 1.00 pm (CET+1)
Kemira will hold its 2014 Capital Markets Day (CMD) in London today where it presents its current strategy and related financial targets.
Kemira updates its mid-term financial targets and expects its revenue to be EUR 2.7 billion in 2017 with an operative EBITDA margin of 15%. Previous target was for revenue to be between EUR 2.6 billion - 2.7 billion in 2016 with an operative EBITDA margin of 15%. Gearing target has not changed and is expected to remain below 60%.
Kemira expects its capital expenditure-to-sales ratio to increase for the next few years from the current run rate of approximately 6%. In addition, Kemira expects its medium-term operative tax rate to be in the range of 22%-24%. This rate excludes non-recurring items and the contribution of income from associated companies.
Kemira is maintaining its existing outlook for 2014. In 2014, Kemira expects its revenue in local currencies and excluding acquisitions and divestments to be slightly higher than in 2013 and its operative EBITDA to be approximately at the same level as in 2013.
Kemira's President and CEO, Jari Rosendal, will give an overview of the company's strategy in his CMD presentation.
Kemira's restructuring phase has been largely completed. Kemira is now progressing towards the next phase of its strategy - focusing on growth. This growth will be achieved by providing customers in water intensive industries with improved water, energy and raw material efficiency, through a more streamlined operational structure across the Kemira Group.
Kemira has three core segments with well-defined strategic objectives:
- Paper and Oil & Mining are targeting profitable, above-the-market growth.
- Municipal & Industrial is targeting to maximize cash flow generation.
Kemira's mid-term financial targets are expected to be reached through organic growth, inorganic growth and continuous efficiency improvements.
Organic growth will be supported by new innovation based revenue, investments to new and existing capacity, specifically capacity expansion in polymers for oil & gas in North America, in paper process chemicals in APAC and pulp chemicals in South America.
Inorganic growth will be supported by the acquisitions of 3F polymer (Q4 2013), BASF AKD emulsion (Q2 2014) and AkzoNobel paper chemical (closing expected during Q1 2015) businesses, as well as other possible selective acquisitions.
Continuous efficiency improvements are mainly related to cost optimization in manufacturing and supply chain.
Other Kemira speakers at the CMD include Petri Castrén, CFO; Petri Helsky, President, Paper; Tarjei Johansen, President, Oil & Mining; Kenneth Nystén, SVP, Paper EMEA and Sergej Toews, Head of Strategy, Municipal & Industrial.
All Kemira CMD 2014 presentations are available at www.kemira.com at around 2.00 pm (12.00 pm UK). The CMD can be followed via webcast at http://view-w.tv/381-1046-13536/en and Twitter at #capitalmarketsday.
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 2013, Kemira had annual revenue of EUR 2.2 billion and around 4,500 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd.
www.kemira.com
