Kemira Oyj ( KMRAF.PK)

Q3 2011 Earnings Call

October 27, 2011 6:00 AM ET


Leena Lie – VP, Marketing and Communications

Pekka Paasikivi – Chairman of the Board

Wolfgang Büchele – CEO

Harri Kerminen – President and CEO


Peter Mackey – MS

Martin Evans – JPMorgan


Leena Lie

Good morning everybody. I’m Leena Lie from Kemira Communications Department and I’m very pleased to have the possibility to run the show today on our quarter three results and also regarding our CEO change announcement.

This is both webcast and a conference call at the same time and how we will run the show. First we will have Mr. Pekka Paasikivi, our Chairman of the Board presenting then Wolfgang Büchele, the new CEO followed by Harri Kerminen talking about the Q3 results and after that we will have the questions and answers session at the end of everything.

But now I will give over to Mr. Paasikivi.

Pekka Paasikivi

Thank you, Leena, and thank you for coming. Ladies and gentlemen, Wolfgang Büchele has been appointed as the CEO of Kemira starting from 1st of April next year following Harri Kerminen’s retirement. Harri started to work with Kemira as a CEO in the beginning of 2008 and at that time the company needed a new prime.

Kemira was very diversified. We had some issues in the balance sheet and also with profitability. Harri has done the company more coherent, more focused and we are profitable today. This has been not an easy task it required the long list of painful decisions but as I already mentioned that all has done very well.

Spinning of Tikkurila and building the joint venture develop order has been two excellent cases how to restructure the company. Today Kemira is well recognized water chemistry global player. And we have even started to generate shareholder value in the long-term, which is of course much more challenging than just to go after a single target number.

To create shareholder value in the long-term needs strong focus on all the stakeholders and that has now seen -- we have started on that and I’m sure that both companies is following that path.

Because we will continue to implement the strategy, we are still in the various but the path is clear and I’m confident that we have all the means to do it. We have a good personnel and we are financially strong.

The Board started to work on succession planning already in spring and we engage the facilitator in the beginning and we’ve worked out certain criteria. Before North Europe and Central Europe, we also looked at the internal candidates and we also asked if Wolfgang Büchele could be available and interested and his answer was, yes. So this process was run very quickly and smoothly and we could run it through in a year’s time, normally people need to reserve two years for such a process.

So quite soon it became evident that Wolfgang is the best candidate and here we are, and I think I will give the word for you and now Wolfgang and you can introduce and talk about your background.

Wolfgang Büchele

I will do so.

Pekka Paasikivi

Thank you very much, Büchele. Thank you.

Wolfgang Büchele

First of all ladies and gentlemen, I’m very pleased and proud to be able to be here today. And I am very happy that the Board of Kemira has extended its trust into my person by nominating me for this job.

I’ve served on the Board of Kemira in 2009, so it’s not completely new to me, what Kemira is doing. I participated in shaping Kemira over the last three years in my capacity as Board member already. Having said that it becomes obvious that you cannot expect now a deserted move because if now certainly everything will be changed and obviously I would have done something wrong in the past three years.

Therefore clearly we will continue with successful water strategy. And this was actually what appealed me very much when I got a call from Pekka Paasikivi asking me whether I will be interested to serve as the CEO of Kemira.

Water is the vital element for mankind going forward. A human body can survive for three weeks without food, but only three days without water. And this will be the biggest challenge on earth, the distribution of water, clean water and making water available when people need it. Not just for their own consumption, but also of course, for food production because food production without water is also not working.

The other challenge which Kemira has taken up already for many years and it’s getting an even bigger threat going forward is that we have to deal with increasing volumes of polluted water. So it’s not just that you can make and have to make fresh water available for the people, you have to find ways and you have to find ever sophisticated ways, more sophisticated ways to turn polluted water into drinkable water. This is where chemistry and modern technology and ultimately innovation come into play where Kemira with the SWEET (ph) project has already put in a great step and a great commitment in order to develop new technology for the challenging not of today, but for the challenges of tomorrow.

So with this respect I am very pleased to have been now nominated and be able to take Kemira further along the path, which has been started by Harri Kerminen. I myself, I’m 52 years old, I spent 25 years in the chemical industry, mostly in specialties, but I also understand standardized products, I understand commodities.

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