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4/23/2013 - Stock exchange release

Kemira's strategy sharpened in four key areas and new financial targets for 2016 are published

Kemira Oyj
Stock exchange release
April 23, 2013 at 2.30 pm (CET+1)

Today, Kemira has presented its sharpened strategy “From redesign to expansion” in conjunction with new financial targets for 2016.

By the end of 2020, Kemira aims to become a leader in the industry and technology in chosen target markets. Kemira’s strategy has been sharpened in four key areas: business, growth, geographical focus and innovation.

Business focus: Kemira continues to provide expertise and tailored combinations of chemicals for water-intensive industries. We focus on pulp & paper, oil & gas, mining and water treatment to improve our customers’ water, energy and raw material efficiency.

Growth: Paper and Oil & Mining segments are targeting profitable, above-the-market revenue growth through differentiated product lines (e.g. polymers, sizing and other process chemicals). Municipal & Industrial segment will focus on profitability improvement and together with ChemSolutions, on maximizing cash flow generation. Kemira increases the share of capital expenditure used for differentiated product lines in order to support the targeted growth. With commodity products (e.g. coagulants, bleaching chemicals and formic acid), the focus is on maximizing profitability and cash flow.

Geographical focus: Mature markets continue to be important for all segments, whereas the focus in the emerging markets is on selective expansion. In the emerging markets, China and Indonesia are the key markets for the paper wet-end chemistry. In line with this, the segment management of Paper will relocate to Hong Kong as of September 1, 2013. Brazil and Uruguay will remain important markets for the bleaching chemicals used in pulp industry. Oil & Mining is targeting expansion in selected countries in South America as well as in the Middle East and Africa.

Innovation: R&D is a critical enabler for organic growth in Kemira and provides differentiation capabilities in water quality and quantity markets. Kemira’s R&D spending will be increased for the process improvement innovations in paper, oil & gas and mining industries, as well as in the related product lines (polymers, sizing and other process chemicals).


Continuous efficiency improvement will remain the key enabler for the successful strategy implementation.

Financial targets for 2016 are EUR 2.6 – 2.7 billion in revenue with an EBITDA margin of 15% and a gearing less than 60%.

For more information, please contact


Kemira Oyj
Tero Huovinen, Director, Investor Relations
Phone +358 10 862 1980

Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise 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 2012, Kemira had annual revenue of EUR 2.2 billion and around 4,900 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd.
www.kemira.com

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