Kemira Oyj
Stock Exchange Release
February 11, 2016 at 8.30 am (CET+1)
This is a summary of the Financial Statements Bulletin of 2015. The complete Financial Statements Bulletin 2015 with tables is attached to this release and available at www.kemira.com/investors.
Fourth quarter:
- Revenue increased 10% to EUR 600.2 million (547.1) driven by acquisitions and favorable currencies.
- Operative EBITDA increased 4% to EUR 68.0 million (65.3) with a margin of 11.3% (11.9%).
Full year:
- Revenue increased 11% to EUR 2,373.1 million (2,136.7). Revenue in local currencies, excluding acquisitions and divestments, decreased 1%.
- Operative EBITDA increased 14% to EUR 287.3 million (252.9) with a margin of 12.1% (11.8%).
- Earnings per share decreased to EUR 0.47 (0.59) partly due to higher depreciation and amortization resulting from acquisitions, and non-recurring items. Operative earnings per share were EUR 0.63 (0.63).
- The Board of Directors proposes a cash dividend of EUR 0.53 per share (0.53) to the Annual General Meeting 2016, totaling EUR 81 million (81) equivalent to 84% (84%) of the operative net profit.
- Outlook: Kemira continues to focus on profitable growth. Kemira expects its revenue and operative EBITDA to increase in 2016 compared to 2015.
Kemira's President and CEO Jari Rosendal:
"Our fourth quarter revenue growth was driven by acquisitions. The integration of acquired businesses is proceeding very well. In the Pulp & Paper segment, operative EBITDA margin increased sequentially throughout the year. Solid performance in the Municipal & Industrial segment continued. The drastic drop in oil price continued to negatively impact the revenue and profitability of the Oil & Mining segment.
In 2015, our revenue grew by 11% and operative EBITDA by 14% leading to an improved margin of 12.1%, supported by acquisitions and favorable currency exchange rates. I am pleased with the development of the net working capital during the last quarters which contributed to the improvement in operating cash flow.
In the Pulp & Paper segment, revenue in local currencies, excluding acquisitions and divestments, grew by 2%. Good demand for pulp chemicals is expected to continue resulting in capacity increases, such as our new chlorate plant in Brazil, which is expected to start in the first half of the year. We are planning to add bleaching chemical capacity also in the Nordics. In addition, we have signed several new Total Chemistry Management deals, which will bring additional revenue in 2016.
In the Municipal & Industrial segment revenue, growth continued and profitability improved substantially, the operative EBITDA margin reaching nearly 14% for the year. After the restructuring period in the previous years, the segment is delivering well on its strategic objectives of steady growth and cash flow generation.
The Oil & Mining segment continues to be twofold. The activity in the U.S. shale operations remains slow negatively impacting the segment's financials. On the other hand, the mining business remains steadier and the progress of new applications in the field of Chemical Enhanced Oil Recovery (CEOR) is encouraging.
I consider Kemira to be well-positioned to continue profitable growth with clear strategic objectives. Despite substantial changes in the operating environment in 2015, our strategy execution is on track and we continue to focus on profitable growth in 2016."
KEY FIGURES AND RATIOS
| EUR million | Oct-Dec 2015 | Oct-Dec 2014 | Jan-Dec 2015 | Jan-Dec 2014 |
| Revenue | 600.2 | 547.1 | 2,373.1 | 2,136.7 |
| Operative EBITDA | 68.0 | 65.3 | 287.3 | 252.9 |
| Operative EBITDA, % | 11.3 | 11.9 | 12.1 | 11.8 |
| EBITDA | 57.7 | 73.2 | 263.8 | 252.9 |
| EBITDA, % | 9.6 | 13.4 | 11.1 | 11.8 |
| Operative EBIT | 33.1 | 39.5 | 163.1 | 158.3 |
| Operative EBIT, % | 5.5 | 7.2 | 6.9 | 7.4 |
| EBIT | 17.8 | 45.4 | 132.6 | 152.6 |
| EBIT, % | 3.0 | 8.3 | 5.6 | 7.1 |
| Financing income and expenses | -5.8 | -10.3 | -30.8 | -30.7 |
| Profit before tax | 12.0 | 35.3 | 102.1 | 122.1 |
| Net profit | 4.4 | 23.9 | 77.2 | 95.8 |
| Earnings per share, EUR | 0.02 | 0.15 | 0.47 | 0.59 |
| Operative earnings per share, EUR | 0.13 | 0.16 | 0.63 | 0.63 |
| Capital employed* | 1,659.5 | 1,427.7 | 1,659.5 | 1,427.7 |
| Operative ROCE*, % | 9.8 | 11.1 | 9.8 | 11.1 |
| ROCE*, % | 8.0 | 10.7 | 8.0 | 10.7 |
| Cash flow from operating activities | 112.6 | 25.0 | 247.6 | 74.2 |
| Capital expenditure excl. M&A | 61.2 | 55.5 | 181.7 | 145.7 |
| Capital expenditure incl. M&A | 63.2 | 54.9 | 305.1 | 145.1 |
| Cash flow after investing activities | 49.8 | -22.4 | -53.8 | 75.2 |
| Equity ratio, % at period-end | 46 | 51 | 46 | 51 |
| Equity per share, EUR | 7.76 | 7.57 | 7.76 | 7.57 |
| Gearing, % at period-end | 54 | 42 | 54 | 42 |
| Personnel at period-end | 4,685 | 4,248 | 4,685 | 4,248 |
*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.
Dividend and dividend policy
On December 31, 2015, Kemira Oyj's distributable funds totaled EUR 684,913,318 of which net profit for the period was EUR 165,155,958. No material changes have taken place in the company's financial position after the balance sheet date.
Kemira Oyj's Board of Directors proposes to the Annual General Meeting to be held on March 21, 2016 that a dividend of EUR 0.53 per share totaling EUR 81 million shall be paid on the basis of the adopted balance sheet for the financial year ended December 31, 2015.
Kemira's dividend policy aims to pay a stable and competitive dividend.
KEMIRA'S FINANCIAL TARGETS 2017 AND OUTLOOK FOR 2016
Kemira will continue to focus on improving its profitability and 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%.
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 growth for Kemira, providing differentiation capabilities in its relevant markets.
Outlook for 2016
Kemira continues to focus on profitable growth. Kemira expects its revenue and operative EBITDA to increase in 2016 compared to 2015.
Kemira expects its capital expenditure, excluding acquisitions, to be around EUR 200 million 2016.
Helsinki, February 10, 2016
Kemira Oyj
Board of Directors
FINANCIAL CALENDAR 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 Oyj's Annual Report 2015 will be published during the week starting on February 22, 2016. The Annual General Meeting is scheduled for Monday, March 21, 2016 at 1.00 pm (CET+1). The Board of Directors of the company will convene the meeting.
Kemira's Capital Markets Day will be held on September 15, 2016 in London.
Press and analyst conference and conference call
Kemira will arrange a press conference for analysts and the media starting at 10.30 am (8.30 am 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 and the recording of the webcast will be available on the above mentioned company website.
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 81710495
SE +46 8 56642702
UK +44 20 31940552
US +1 855 7161597
No PIN code requested.
For more information, please contact:
Kemira Oyj
Olli Turunen, Vice President, Investor Relations
Tel. +358 10 862 1255
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 2015, Kemira had annual revenue of EUR 2.4 billion and around 4,700 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
www.kemira.com
