Kemira as an investment

Equity story in brief (.pdf)

Targeting above-the-market revenue growth (market growth estimate 2018-2023, CAGR: ~3%):

MEGATREND IMPACT HOW KEMIRA BENEFITS FROM THE MEGATREND, FOR EXAMPLE
GROWING
MIDDLE CLASS &
URBANIZATION
Higher use of water,
energy, tissue and
board
Water reuse and treatment, absorbency and softness of tissue, light-weight high-quality board, energy savings in oil production are a few examples of how our chemistry can be utilized.
Fast growth in e-commerce / online shopping We are supporting production of light and strong packaging board in a growing market.
SCARCITY OF RESOURCES New materials to enable circular economy

 

Single-use plastics can be partially replaced with fiber-based products where we play a key role with its pulp and paper chemistry.
Higher efficiency in material and resources With our chemistry, customers can enhance their resource efficiency: e.g. reuse of water, less energy needed in oil production, and lighter board, creating cost savings.
REGULATION Safe drinking water  Our products are used to purify the equivalent of 320 million people´s annual water usage – the demand for safe drinking water is growing globally.
More stringent wastewater discharge limits Wastewater discharge limits are tightening and with our water treatment chemicals, customers can meet the limits.

 

Operative EBITDA target of 15-17%

Factors to watch for profitability improvement

Factors FY 2018 comments
Organic growth through volume and sales price increases Group’s organic growth +7%
Oil & Gas becoming larger share of Group (incl. shale, CEOR* and oil sands) Revenue from EUR 126 million in 2016 to EUR 242 million in 2018
Raw material price development Significant inflation in 2017 and 2018
Currency exchange rate development, especially EUR/USD FX delta EUR -14 million on EBITDA
Prudent fixed cost management Fixed costs almost flat despite strong organic growth
AKD acquisition / joint venture in China Significant backward integration and growth benefits
*CEOR=chemical enchanced oil recovery

Strong balance sheet

  • Good funding position
  • M&A possible short term, if profitability and synergy criteria are all met

Average dividend yield close to 5% during 2011–2018

  • Leading dividend yield in the European chemical sector

We help customers create more value by applying our expertise where water meets chemistry

  • Kemira is a global chemicals company serving customers in water intensive industries

 

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