Kemira as an investment

Targeting above-the-market revenue growth (market growth estimate 2017-2022, CAGR: ~3%)

  • E-commerce drives the need for packaging material
  • Growing middle class, increased standards of living and urbanization leads to higher usage of water, energy, tissue, and board
  • Recycling and use of renewables lead to e.g. higher usage of strength chemicals
  • Replacement of plastics with biodegradable products
  • Regulation increases water treatment
  • Scarcity of resources accelerates need to produce more with less

Kemira equity story in brief (.pdf)

Operative EBITDA target of 14-16%

Factors to watch for profitability improvement

Factors H1 2018 comments
Volume growth and sales price increases Group’s volume growth +2% and sales prices +6%
Oil & Gas becoming larger share of Group (incl. shale, CEOR and oil sands) Revenue from EUR 126 million in 2016 to EUR 233 milion (LTM)
Raw material price development Significant headwind in 2017 and YTD 2018
Currency exchange rate development, especially EUR/USD FX delta EUR -17 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 2011–2017

  • 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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