Stock Exchange Release
September 14, 2016 at 7.30 pm (CET+1)
Kemira Capital Markets Day 2016: Kemira now aiming for above-the-market revenue growth with operative EBITDA margin of 14-16%
Kemira will hold its 2016 Capital Markets Day (CMD) in London, tomorrow starting at 12.30 (UK time). The company presents its strategy for profitable growth and related financial targets.
Today Kemira updated its mid- to long-term financial targets, emphasizing its continued goal of above-the-market revenue growth with improving profitability. The company has progressed well towards the previous targets of EUR 2.7 billion in revenue and operative EBITDA margin of 15%, despite the weak developments in oil & gas markets which started in 2015.
Kemira now aims at above-the-market revenue growth with operative EBITDA margin of 14-16%. The gearing target is maintained at below 60%.
Main drivers for Kemira's profitable growth are:
- In Pulp & Paper: above-the-market growth arising from new Total Chemistry Management (TCM) contracts and bleaching chemical capacity additions, as well as synergy capture from acquisitions
- In Oil & Mining: profitable growth in newer applications such as Chemical Enhanced Oil Recovery (CEOR) and Oil Sands, as well as potential oil market recovery
- In Municipal & Industrial: increasing revenue from Advanced Water Treatment (AWT) applications, as well as continuing growth in current business driven by selective geographic expansion
- Group-wide operational efficiencies with new BOOST program.
The integration of the acquired AkzoNobel paper chemicals business has progressed better than expected and Kemira has raised the synergy target from EUR 15 million to EUR 20 million.
Kemira has also launched an operational excellence program 'BOOST' to improve efficiency. Estimated annual savings run-rate from the program are EUR 20-30 million in 2-3 years. BOOST will focus on supply chain process optimization and improved asset utilization.
In addition, Kemira continues to evaluate acquisition opportunities to enhance profitable growth.
CMD agenda, webcast and material
The agenda of the CMD is as follows (all times are UK time):
12:00 Buffet lunch and registration
12:30 CEO, Jari Rosendal
Pulp & Paper, Kim Poulsen
Oil & Mining, Tarjei Johansen
Municipal & Industrial, Antti Salminen
Operational Excellence, Esa-Matti Puputti
CFO, Petri Castrén
Q&A with CEO and CFO
Concluding remarks by CEO
15:35 Breakout sessions (three groups)
Venue: Haberdashers' Hall
18 West Smithfield, London
All presentations are available at www.kemira.com/investors on September 15 at around 8.00 am (UK time). The CMD can be followed via webcast on the website and in Twitter at #KemiraCMD16.
For more information, please contact
Olli Turunen, Vice President, Investor Relations
Tel. +358 10 862 1255
Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise, application know-how 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 2015, Kemira had annual revenue of EUR 2.4 billion and around 4,700 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Kemira Oyj via Globenewswire