Report of the month

May 2010

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Kemira

Helsinki, Finland



Report Facts

Company name: Kemira Oyj
Fiscal year end: December 31, 2009
Report title: -
President and CEO: Harri Kerminen
Number of books: One
Report length: 140 pages
Auditors: KPMG Oy AB
Production: Sanoma Magazines
E-mail: paivi.antola@kemira.com

Report Rating

3.5/5

(Rating scale below)

Profile (Excerpts, as from the report)

Kemira’s vision is to become a leading water chemistry company, focused on serving customers in water intensive industries... The company estimates that the global chemical market related to water treatment, process efficiency and stability in water intensive industries is worth approximately EUR 25 billion.
Markets by segment: paper (35%); municipal & Industrial (40%); Oil & Mining (25%).
(Annual Report) (Italics are own company’s words)

Key Figures

Revenue: Euro 2,500.1 million
Operating profit: Euro 157.4 million
Profit before tax: Euro 102.9 million
Earnings per share: Euro 0.61
Dividend per share: -
Return on capital employed: 7.8%
Personnel: 8,493
(Source: 2009 figures sourced from the annual report)

Competitors and Peers

  • AkzoNobel
  • Bayer
  • DuPont
  • Pall
  • Evonik
  • Arkema
  • Lanxess
  • Celanese
  • ...
 

Triple A

> The front cover and all the covers hint or tell about the business (4 facts on the back cover). Contrary to a majority, this one is capable of putting the finishing touch to the report, we mean to use the last pages and inside cover for talking: check the Amazing World map (pp 138-139).
> A review of businesses that tells stories in a lively, animated and reader-friendly mode: besides typography, plentiful illustrations and magazine-looking headlines, reading facilities include 30 seconds bullet points, Key figures, Leader on the spot sections.
> Thorough five-year Key figures, intelligibly defined, including significant ratios and introduced with six well-chosen charts.
> Transparency about shareholder control and showing main share indicators expected by investors.
 

Double A

> An interview with the CEO supplements the short introductory statement. It’s backed with photos, key figures, financial targets; and addresses main focus areas for the upcoming year.
> Nice directors and managers’ portraits next to well-put background information.
 

Simple A

> Fair disclosure of governance practices. But compensation details are not up.
> Responsibility and sustainability matters are not concealed, yet lacking in developments.
 

B Sides

> Key Figures downplayed at the bottom of p 10. Is it because no dividend was distributed that the item is not included among them?
> Board of Director’s Review could be better structured and substantiated (e.g. on liquidity matters).
> Risk Management boiled down to one single page.
> The investor relations web pages are functional, not more than that.
 

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item.
Contact e.com@reportwatch.net

 

Selected Page

(p 27 of Kemira Annual Report 2009)
p 27 of Kemira Annual Report 2009
Rating Scale
5
First-Rate
4.5
Excellent
4
Very good
3.5
Sound
3
Average
2.5
Uneven
2
Common
1.5
Substandard
1
Poor
0.5
Uncompetitive

The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.

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