Kemira Capital Markets Day 2015: Financial targets for 2017 unchanged, updated strategic objectives for segments
Stock Exchange Release
September 17, 2015 at 8.00 am (CET+1)
Kemira will hold its 2015 Capital Markets Day (CMD) in its R&D center in Espoo, Finland today. The company presents its current strategy and related financial targets.
The company's updated vision "The first choice in chemistry for water-intensive industries" communicates customer and innovation focus as well as sustainable, long-term shareholder value generation.
Company's mid-term financial targets remain unchanged, expecting revenue of EUR 2.7 billion in 2017, with an operative EBITDA margin of 15% and gearing level < 60%.
Kemira's mid-term targets are expected to be reached through organic and inorganic growth, as well as continuous efficiency and profitability improvements, including e.g.:
Commercialization of new innovations, especially for packaging board industry
Investments in long-term "chemical island" bleaching chemical contracts
Scaling up operations in the APAC region
Leveraging global polymer capacity by entering new application areas like Chemical Enhanced Oil Recovery (CEOR) and oil sands in Oil & Mining
Organic growth and efficiency improvements in Municipal & Industrial
Revenue and cost synergies from acquisitions.
Kemira has three core segments with well-defined strategic objectives. The company announces that the Paper segment has been renamed as Pulp & Paper segment. After the recent acquisition of AkzoNobel's paper chemicals business, Kemira is now the only bleaching, process and functional chemicals provider with a truly global reach, serving the pulp and paper industry. The company also updates the segment-specific strategic objectives as follows:
Pulp & Paper segment: Targeting above-the-market growth with improved profitability (old strategic objective: targeting profitable above-the-market growth). The target is to reach at least two times the market growth. This may include selective bolt-on acquisitions. Pulp & Paper's profitability is expected to be in-line with the Kemira Group target.
Oil & Mining segment: Targeting growth and expansion to new applications (old strategic objective: targeting profitable above-the-market growth). The segment is expected to return to organic growth in 2016, regardless of current oil price levels. Over-the-cycle growth target is to grow at double-digit rate. Over-the-cycle profitability is expected to be higher than the Group target.
Municipal & Industrial segment: Steady growth and cash flow generation (old strategic objective: focus on profitability improvement and on maximizing cash flow generation). Municipal & Industrial's growth is expected to be between 2-4% (CAGR) and profitability slightly below the Group target.
Kemira's President and CEO, Jari Rosendal, will give an overview of the company's strategy in his CMD presentation. Other Kemira speakers include Petri Castrén, CFO; Heidi Fagerholm, CTO; Mats Rönnbäck, Interim President, Pulp & Paper; Billy Ford, SVP, Pulp & Paper Americas; Antti Salminen, President, Municipal & Industrial and Tarjei Johansen, President, Oil & Mining.
All Kemira CMD 2015 presentations are available at www.kemira.com at around 11.00 am (CET+1). The CMD can be followed via webcast at www.kemira.com/investors and in Twitter at #KemiraCMD.
For more information, please contact
Tero Huovinen, Senior Vice President, Communications & Corporate Responsibility
Tel. +358 10 862 1980
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 2014, Kemira had annual revenue of EUR 2.1 billion and around 4,250 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
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
Source: Thomson Reuters ONE
(September 17, 2015 - 1:00 AM EDT)
News by QuoteMedia