Annual Report 1999 - Kemira

STRATEGY
Our strategy is to concentrate on fields requiring many-sided competence within
the chemical industry. We will seek growth within paper and pulp chemicals,
water treatment chemicals and paints. Those fields have promising growth prospects
and are less dependent on economic cycles than is the industry average.
Other priority areas are speciality fertilizers and industrial chemicals.
FINANCIAL TARGETS
1999 2000 Target
from 2001
Net sales, growth % 5 over 10
Operating income, % of net sales 4 Restructur- over 10
Earnings per share, growth % neg. ing year over 10
Cash flow return on capital invested, % 9 over 10
Gearing, % 95 40–100
Paints and
coatings 9 %
Colour
processing
systems
5 %
Pigments
19 %
Other 3 %
Pulp & paper chemicals 12 %
Water treatment
chemicals 5 %
Industrial
chemicals
9 %
Speciality
fertilizers
19 %
RESTRUCTURING
For titanium dioxide pigments and
nitrogen fertilizers - the fields falling
outside the new core business - we
will seek, by way of co-operation or
ownership arrangements, solutions
that enhance their cash flow generation
potential. The growth potential
of the Tikkurila CPS unit, which has
specialized in colour processing systems,
will be promoted by separating
it out from the paint business.
Nitrogen fertilizers
19 %
1999 net sales EUR 2,526 million