Kemira as an investment

(updated Feb 11, 2021)

Reasons to invest

Strong profitability improvement track record

Focus on profitable sustainable growth. Operative EBITDA margin improved to 17.9% and operative EBIT to 9.8% in 2020.

 

Attractive dividend

Updated dividend policy: competitive and over-time increasing dividend. The dividend proposed to be increased to EUR 0.58 (0.56).

Sustainability at the core of strategy

Kemira will become the leading provider of sustainable chemical solutions for water-intensive industries.

Growth strategy

Targeting above-the-market revenue growth (market growth estimate 2019-2025, CAGR: ~3-4%):

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 15-18%

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.

Factors to watch for profitability improvement

Factors 2020 comments
Organic growth through volume and sales price increases Group’s organic growth -4%, excl. Currencies and Oil & Gas -2%. Sales volumes were impacted by COVID-19 related economic slowdown.
Sales price vs raw material price development Good management of fixed and variable costs, including lower raw materials and electricity costs.
Growth investments – Polymer capacity expansion in Netherlands (2019-2020), AKD sizing Joint Venture in China (2019-2020), Polymer capacity expansion in the US (2021), bleaching expansion in Uruguay (2022-2023). Investments in China and the Netherlands contributed positively to EBITDA in 2020 (impact double-digit millions).

Debt information

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 2011–2020

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.

Revenue split by customer benefit

Kemira is a global leader in sustainable chemical solutions for water intensive industries. We provide best suited products and expertise to improve our customers’ product quality, process and resource efficiency. Our focus is on pulp & paper, water treatment and oil & gas. In 2020, Kemira had annual revenue of around EUR 2.4 billion and around 5,000 employees.

optimization

Product quality of product yield optimization 50%

efficiency

Process and energy efficiency 20%

quality & compliance

Water quality and regulatory compliance in raw water and wastewater treatment 30%