Outlook and restructuring program Fit for Growth

Kemira will continue to focus on improving its profitability and reinforcing positive cash flow. The company will also continue to invest in order to secure the future growth in the water quality and quantity management business.

Kemira’s financial targets remain as earlier communicated. The company’s medium term financial targets are:

The basis for growth is the expanding market for chemicals related to water quantity and quality management and Kemira’s strong know-how in this field. Increasing water shortage, tightening legislation and customers’ needs to increase operational efficiency create opportunities for Kemira to develop new water applications for both current and new customers. Investment in research and development is a central part of Kemira’s strategy. The focus of Kemira’s research and development activities is on the development and commercialization of new innovative technologies for Kemira’s customers in all relevant markets.

Restructuring program Fit for Growth

Kemira Oyj has started to implement its global restructuring program Fit for Growth, launched at the end of July, 2012, 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. The cost savings target with the planned program is EUR 60 million on an annualized basis. In 2012, the cost savings impact of Fit for Growth was EUR 10 million.

The anticipated EUR 60 million cost saving impact of the program is expected to take place as follows: EUR 10 million in 2012, EUR 50 million in 2013 and EUR 60 million in 2014. The ultimate goal of the program is to reach at least 10% EBIT margin in 2014. Redundancies will account for 50% of the expected savings. The remaining 50% will be achieved through the manufacturing network consolidation as well as through the leaner operations. Cost savings estimates for the different segments, based on the detailed plan of measures, are: Paper EUR 22 million, Municipal & Industrial EUR 22 million, Oil & Mining EUR 12 million and ChemSolutions EUR 4 million.

Non-recurring charges related to the restructuring program are estimated to be around EUR 85 million, EUR 45 million of which will be severance payments and external services related cost and EUR 40 million will be asset write-downs. EUR 71 million of the restructuring charges were booked in the second half of 2012, and the balance will be booked in the first half of 2013. In the fourth quarter in 2012 non-recurring charges related to Fit for Growth amounted to EUR 31 million, EUR 8 million of which were asset write-downs and EUR 23 million were severance payments and external services.

The implementation may ultimately lead to a reduction of up to 600 positions globally. Kemira has initiated the co-determination negotiations according to each country’s local legislation. In the beginning of the negotiations, it was estimated that the personnel reductions may affect approximately 260 employees working in Finland. As a result of the co-determination negotiations, the head count reduction was 152 in Finland. Additional potential outsourcing in Finland is still under consideration. Kemira had 4,857 employees worldwide at the end of December 2012 (5,006 at the end of 2011).


In 2013, Kemira expects its revenue in local currencies and excluding divestments to be slightly higher than in 2012 and its operative EBIT to be significantly higher than in 2012. The guidance for 2013 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 6, 2013

Kemira Oyj
Board of Directors

All forward-looking statements in this review are based on the management’s current expectations and beliefs about future events, and actual results may differ materially from the expectations and beliefs such statements contain.