Outlook and financial targets and definition of key figures

Outlook for 2021

(updated on Feb 18, 2021)

Revenue
Kemira’s revenue in local currencies, excluding acquisitions and divestments, is expected to increase from 2020 (EUR 2,427 million).

Operative EBITDA
Kemira’s operative EBITDA is expected to be at the same or at a slightly (less than 5%) lower level than in 2020 (EUR 435 million).

Assumptions behind outlook
COVID-19 pandemic continues to cause uncertainty in 2021, but Kemira’s end market demand is expected to recover gradually from 2020 in line with forecasted economic growth. Demand, particularly in the oil and gas market, is expected to recover. The outlook assumes no significant disruptions to Kemira’s operations. Currencies are expected to have a negative impact on operative EBITDA.

Kemira’s financial targets
Revenue Above-the-market revenue growth
Operative EBITDA margin 15-18%
Gearing level​ below 75%​

Kemira updated its financial targets on November 19, 2020. Kemira’s target for operative EBITDA margin has been updated to 15-18% (previously 15-17%), while other financial targets remain unchanged.

Definition of key figures

Financial figures

Operative EBITDA
Operating profit (EBIT) + depreciation and amortization + impairments – items affecting comparability

Items affecting comparability 1)
Restructuring and streamlining programs + transaction and integration expenses in acquisitions + divestment of businesses and other disposals + other items

Operative EBIT
Operating profit (EBIT) – items affecting comparability

Interest-bearing net liabilities
Interest-bearing liabilities – cash and cash equivalents

Equity ratio, %
Total equity x 100                             
Total assets – prepayments received

Gearing, %
Interest-bearing net liabilities x 100
Total equity

Interest cover
Operating profit + depreciation, amortization and impairments
Finance costs, net

Return on investment (ROI), %
(Profit before taxes + interest expenses + other financial expenses) x 100
(Total assets –  non-interest-bearing liabilities)2)

Return on equity (ROE), %
Net profit attributable to equity owners of the parent x 100
Equity attributable to equity owners of the parent 2)

Cash flow return on investment (CFROI), %
Net cash generated from operating activities  x 100
(Total assets – interest-free liabilities)2)

Cash flow after investing activities

Net cash generated from operating activities + net cash used in investing activities

Operative return on capital employed (OPERATIVE ROCE), %
Operative EBIT + share of profit or loss of associates x 100 3)
Capital employed 4)5)

Return on capital employed (ROCE), %)
Operating profit + share of the results of associates x 1003)
Capital employed 4) 5)

Capital turnover
Revenue                    
Capital employed 4) 5)

Interest-bearing net liabilities / EBITDA
Interest-bearing net liabilities
Operating profit (EBIT) + depreciation and amortization +, impairments

Net financial cost, %
(Finance costs, net – dividend income – exchange rate differences) x 100
Interest-bearing net liabilities 2)

Net working capital
Inventories + trade receivables + other receivables, excluding derivatives, accrued interest income and other financing items – trade payables – other liabilities, excluding derivatives, accrued interest expenses and other financing items

1) Non-GAAP measures excludes the effects of significant items of income and expenses which may have an impact on the comparability in the financial reporting of Kemira Group. Restructuring and streamlining programs; transaction and integration expenses in acquisition; divestments of businesses and other disposals are considered to be the most common items affecting comparability.
2) Average
3) Operating profit and share of profit or loss of associates taken into account for a rolling twelve month period ending at the end of the review period.
4) 12-month rolling average
5) Capital Employed = property, plant and equipment + intangible assets + net working capital + investments in associates

Per share figures

Earnings per share (EPS)
Net profit attributable to equity owner of the parent
Average number of shares

Net cash generated from operating activities per share
Net cash generated from operating activities
Average number of shares

Dividend per share
Dividend paid
Number of shares

Dividend payout ratio, %
Dividend per share x 100
Earnings per share (EPS)

Dividend yield, %
Dividend per share x 100
Share price

Equity per share
Equity attributable to equity owners of the parent
Number of shares

Share price, year average
Shares traded (EUR)
Shares traded (volume)

Price per earnings per share (P/E)
Share price                     
Earnings per share (EPS)

Price per equity per share
Share price                                                                           
Equity per share attributable to equity owners of the parent

Price per net cash generated from operating activities per share
Share price                                                                   
Net cash generated from operating activities per share

Share turnover, %
Number of shares traded x 100
Average number of shares