Kemira Oyj's Financial Statements Bulletin 2013 Kemira Oyj

Kemira Oyj Stock Exchange Release February 7, 2014 at 2.30 pm (CET+1) This is a summary of the Financial Statements Bulletin of 2013. The complete Financial Statements Bulletin 2013 with tables is attached to this release and available at www.kemira.com/investors. Fourth quarter: Major steps in strategic redesign accomplished. Organic growth and profitability improvement continues in the Paper segment * ?Organic revenue growth was 1% in local currencies. Reported revenue decreased 2% to EUR 545.2 million (558.5), due to unfavorable currency exchange rates. * Operative EBIT was EUR 34.5 million (34.1) with a margin of 6.3% (6.1%). * Divestment of coagulant business in Brazil closed and divestment of formic acid business as well as Danish distribution business signed. * The reported earnings per share were reduced to EUR -0.33 (-0.27) largely due to non-recurring items of EUR 76.5 million (61.1). Full year: Sales volume growth and improved profitability, EUR 0.53 dividend proposed * Organic revenue growth was 3% in local currencies. Reported revenue was EUR 2,229 million (2,241). * ?Operative EBIT increased  6% to EUR 164.2 million (155.5) with a margin of 7.4% (6.9%). * ?Earnings per share, excluding non-recurring items decreased to EUR 0.70 (0.77) mainly due to the lower income from the associated companies. * ?Reported earnings per share were reduced to EUR -0.21 (0.12) mainly due to a write-down of EUR 23 million related to the divestment of the shares of Kemira's JV Sachtleben, lower income from associated companies and higher taxes. * ?The Board of Directors proposes a cash dividend of EUR 0.53 per share (0.53) to the Annual General Meeting 2014, totaling EUR 81 million (81), equivalent to 76% (69%) of the operative net profit. * ?In 2014, Kemira expects the revenue in local currencies, excluding acquisitions and divestments to be slightly higher than in 2013 and the operative EBIT to be higher than in 2013. Kemira's President and CEO Wolfgang Büchele: "Kemira's organic revenue and operative EBIT increased slightly in the fourth quarter.  Of the two growth focused segments, Paper with more than 10% organic revenue growth was able to improve its operative EBIT by more than 20%. By showing only modest 3% of organic growth at a disappointing profitability, Oil & Mining has not met our expectations. Thus, we have taken steps to bring Oil & Mining business back to its strategic path. In addition, we closed the acquisition of 3F, which will significantly strengthen our position in the polymer market. The profitability contribution of 3F in Q4 was lower than expected, due to a temporary shutdown in one of the production sites and higher costs mainly related to integration. The acquisition is expected to result in substantial synergies through raw material, logistics and fixed cost savings. The revenue of Municipal & Industrial was partly impacted by the implementation of several strategic initiatives, including a new business model in EMEA and several divestments, which are all expected to improve the segment's profitability. The divestment of ChemSolutions' formic acid business is expected to close during the first quarter of 2014. In the fourth quarter, the organic revenue of ChemSolutions was impacted by the weak de-icing season. Divestments, combined with the Fit for Growth measures have significantly reduced complexity and strengthened our balance sheet in 2013. These measures were required to be able to compete effectively in our core businesses, as well as to support our long-term profitability. Once the divestments are completed, Kemira has been transformed into a pure play company focusing on water quality and quantity management." KEY FIGURES AND RATIOS (figures for 2012 were restated on March 25, 2013)   Oct-Dec 2013 Oct-Dec 2012 Jan-Dec 2013 Jan-Dec 2012 EUR million ------------------------------------------------------------------------------- Revenue 545.2 558.5 2,229.1 2,240.9 ------------------------------------------------------------------------------- Operative EBITDA 58.0 57.4 251.9 249.4 ------------------------------------------------------------------------------- Operative EBITDA, % 10.6 10.3 11.3 11.1 ------------------------------------------------------------------------------- EBITDA -11.2 15.7 141.9 179.9 ------------------------------------------------------------------------------- EBITDA, % -2.1 2.8 6.4 8.0 ------------------------------------------------------------------------------- Operative EBIT 34.5 34.1 164.2 155.5 ------------------------------------------------------------------------------- Operative EBIT, % 6.3 6.1 7.4 6.9 ------------------------------------------------------------------------------- EBIT -38.9 -37.1 42.6 33.1 ------------------------------------------------------------------------------- EBIT, % -7.1 -6.6 1.9 1.5 ------------------------------------------------------------------------------- Share of profit or loss of -0.1 -5.7 -1.1 11.2 associates ------------------------------------------------------------------------------- Financing income and -7.7 -4.1 -39.0 -15.7 expenses ------------------------------------------------------------------------------- Profit before tax -46.7 -46.9 2.5 28.6 ------------------------------------------------------------------------------- Net profit -48.7 -40.4 -25.9 22.4 ------------------------------------------------------------------------------- Earnings per share, EUR -0.33 -0.27 -0.21 0.12 ------------------------------------------------------------------------------- Operative earnings per 0.17 0.13 0.70 0.77 share, EUR ------------------------------------------------------------------------------- Capital employed* 1,366.5 1,673.0 1,366.5 1,673.0 ------------------------------------------------------------------------------- ROCE* 3.0 2.6 3.0 2.6 ------------------------------------------------------------------------------- Capital expenditure 105.0 18.5 197.5 134.1 ------------------------------------------------------------------------------- Cash flow after investing -18.5 9.4 195.7 71.8 activities ------------------------------------------------------------------------------- Equity ratio, % at period- 51 51 51 51 end ------------------------------------------------------------------------------- Gearing, % at period-end 41 42 41 42 ------------------------------------------------------------------------------- Personnel at period-end 4,453 4,857 4,453 4,857 ------------------------------------------------------------------------------- *12-month rolling average (ROCE, % based on the reported EBIT) Definitions of key figures are available at www.kemira.com > Investors > Financial information. Comparative 2012 figures are provided in parentheses for some financial results, where appropriate. Operating profit, excluding non-recurring items, is referred to as Operative EBIT. Operating profit is referred to as EBIT. Dividend On December 31, 2013, Kemira Oyj's distributable funds totaled EUR 681,978,945 net profit, which accounted for EUR 141,177,720 for the period. No material changes have taken place in the company's financial position after the balance sheet date. Kemira Oyj's Board of Directors proposes to the Annual General Meeting to be held on March 24, 2014 that a dividend of EUR 0.53 totaling EUR 81 million shall be paid on the basis of the adopted balance sheet for the financial year ended December 31, 2013. KEMIRA'S FINANCIAL TARGETS, RESTRUCTURING PROGRAM "FIT FOR GROWTH" AND OUTLOOK 2014 Kemira will continue to focus on improving its profitability and reinforcing the positive cash flow. The company will also continue to invest in order to secure future growth in the water quality and quantity management business. Kemira's financial targets have been revised in connection with its strategy update on April 23, 2013. The company's financial targets for 2016 are: * ?  revenue EUR 2.6-2.7 billion * ?  EBITDA-% of revenue 15% * ?  gearing level < 60%. In addition, Kemira expects its medium-term operative tax rate to be in the range of 22%-24%. The operative tax rate excludes non-recurring items and the impact of the income from associated companies. The basis for growth is the expanding market for chemicals related to water quality and quantity management and Kemira's strong expertise in this field. The need to increase operational efficiency in our customer industries creates opportunities for Kemira to develop new products and services for both current and new customers. Research and Development is a critical organic growth enabler for Kemira and it provides differentiation capabilities in the water quality and quantity management markets. Kemira will invest in innovation, technical expertise, and competencies in the targeted focus areas. Restructuring program "Fit for Growth" Kemira Oyj has continued to implement its global restructuring program "Fit for Growth", launched at the end of July 2012 in order to improve the company's profitability, its internal efficiency and to accelerate the growth in emerging markets without sacrificing business opportunities in the mature markets. In 2012, the cost savings impact of "Fit for Growth" was EUR 10 million. In 2013, "Fit for Growth"-related cost savings were EUR 46 million nearly reaching the full cost savings run rate of EUR 60 million on an annualized basis at the end of 2013. "Fit for Growth" related savings will not be reported separately anymore in the coming Kemira interim reports. Outlook In 2014, Kemira expects its revenue in local currencies and excluding acquisitions and divestments to be slightly higher than in 2013 and its operative EBIT to be higher than in 2013. The guidance for 2014 is defined as follows. Kemira guidance  Definition -------------------------------------------------------------- Slightly higher/lower from 0% to 5% or from 0% to -5% -------------------------------------------------------------- Higher/lower from 5% to 15% or from -5% to -15% -------------------------------------------------------------- Significantly higher/lower more than 15% or less than -15% -------------------------------------------------------------- Helsinki, February 7, 2014 Kemira Oyj Board of Directors FINANCIAL CALENDAR 2014 Interim report January-March 2014                           April 23, 2014 Interim report January-June 2014                             July 22, 2014 Interim report January-September 2014                    October 22, 2014 Kemira Oyj's Annual Report 2013 will be published during the week beginning on February 24, 2014. The Annual General Meeting is scheduled for Monday, March 24, 2014 at 1.00 pm (CET+1). Press and analyst conference and conference call Kemira will arrange a press conference for analysts and the media starting at 3.30 pm (1.30 pm UK time) at Kemira House, Porkkalankatu 3, Helsinki. In the conference, Kemira's President and CEO Wolfgang Büchele and the CFO Petri Castrén will present the results. The press conference will be held in English and will be webcasted at www.kemira.com/investors. Webcast will be available at www.kemira.com/investors also after the event. Presentation material will be available on Kemira's website at www.kemira.com/investors under Investors in English and at www.kemira.com/fi/sijoittajat in Finnish at about 3.00 pm. Conference call in connection to the press and analyst conference You can also listen to the conference live over the phone and attend the Q&A session via a conference call. In order to participate in the call, please dial ten minutes before the conference begins: FI:    +358 9 81710467 SE:   +46 851 999352 UK:   +44 203 3645372 US:   +1 855 7532234 No PIN code requested. For more information, please contact Kemira Oyj Tero Huovinen, VP, Investor Relations +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 [HUG#1759944]