Kemira Oyj
Stock Exchange Release
April 24, 2015 at 1.30 pm (CET+1)
This is a summary of the January - March 2015 Interim report. The complete January - March 2015 Interim report with tables is attached to this release and available at www.kemira.com/investors.
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Revenue increased 4% to EUR 553.0 million (529.9) supported by favorable currency exchange rates. Revenues in local currencies, excluding acquisitions and divestments remained flat.
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Operative EBITDA increased 15% to EUR 66.4 million (57.5) with a margin of 12.0% (10.9%).
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Earnings per share decreased to EUR 0.16 (0.28). Comparable period included a capital gain of EUR 37 million related to the divestment of formic acid business.
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Kemira maintains its outlook for 2015.
Kemira`s President and CEO Jari Rosendal:
"Kemira`s year started according to plan. The revenue in the first quarter increased by 8%, excluding the impact of the divested formic acid business in Q1 2014. Operative EBITDA margin improved from 10.9% to 12.0% in Q1 2015. The strengthened U.S. dollar was the main reason for revenue growth. Nearly 40% of Kemira`s revenue is either directly U.S. dollar-based or linked to the U.S dollar, like the Chinese renminbi.
Growth in the Paper segment was solid in the first quarter, supported by favorable currency exchange rates and stable organic growth. Organic growth was driven by increased sales of new innovative solutions to our packaging board and paper customers, thus improving their operational efficiency as well as their end-product quality. In addition, pulp chemical deliveries to Montes del Plata pulp mill in Uruguay continued in line with the ramp up of the new mill.
In the Oil & Mining segment, demand for our products for US shale operations has slowed down in Q1 due to significant reduction in the drilling and fracking activity in the region. Uncertainty around the US shale operations is expected to continue at least for the next couple of quarters. Strong U.S. dollar alleviates the situation to some extent but reaching topline growth in the Oil & Mining segment will be challenging in 2015. In the longer term, we remain optimistic about the growth in the business.
I am pleased with the continued good progress in the Municipal & Industrial segment. The segment`s revenue has stabilized after the restructuring period, and profitability has improved substantially, over 30% in the first quarter of 2015.
The closure of AkzoNobel`s paper chemical business acquisition is now expected to take place in Q2 2015, due to the pending approval from the competition authority in Ukraine. Our readiness to start the integration is very good.
I consider Kemira to be well positioned to focus on growth with clear strategic objectives, customer-driven innovation, responsible business practices, and engaged and skilled professionals."
KEY FIGURES AND RATIOS
| EUR million | Jan-Mar 2015 | Jan-Mar 2014 | 2014 |
| Revenue | 553.0 | 529.9 | 2,136.7 |
| Operative EBITDA | 66.4 | 57.5 | 252.9 |
| Operative EBITDA, % | 12.0 | 10.9 | 11.8 |
| EBITDA | 65.2 | 77.7 | 252.9 |
| EBITDA, % | 11.8 | 14.7 | 11.8 |
| Operative EBIT | 39.1 | 36.3 | 158.3 |
| Operative EBIT, % | 7.1 | 6.9 | 7.4 |
| EBIT | 37.8 | 54.3 | 152.6 |
| EBIT, % | 6.8 | 10.2 | 7.1 |
| Share of profit or loss of associates | 0.2 | 0.0 | 0.2 |
| Financing income and expense | -7.5 | -5.3 | -30.7 |
| Profit before tax | 30.5 | 49.0 | 122.1 |
| Net profit | 26.4 | 43.1 | 95.8 |
| Earnings per share, EUR | 0.16 | 0.28 | 0.59 |
| Operative earnings per share | 0.13 | 0.15 | 0.63 |
| Capital employed* | 1,466.2 | 1,460.0 | 1.427.7 |
| Operative ROCE* | 11.0 | 10.8 | 11.1 |
| ROCE* | 9.3 | 4.0 | 10.7 |
| Capital expenditure | 27.0 | 25.6 | 145.1 |
| Cash flow after investing activities | 16.0 | 130.3 | 75.2 |
| Equity ratio, % at period-end | 48 | 50 | 51 |
| Gearing, % at period-end | 49 | 30 | 42 |
| Personnel at period-end | 4,285 | 4,267 | 4,248 |
*12-month rolling average (ROCE, % based on the reported EBIT)
Definitions of key figures are available at www.kemira.com > Investors > Financial information. Comparative 2014 figures are provided in parentheses for some financial results, where appropriate. Operative EBITDA, operative EBIT, operative earnings per share and operative ROCE do not include non-recurring items.
KEMIRA`S FINANCIAL TARGETS FOR 2017 AND OUTLOOK 2015 (UNCHANGED)
Kemira will continue to focus on improving its profitability and operative cash flow. The company will also continue to invest in order to secure future growth to serve selected water intensive industries.