(Stock Exchange Release) - Revenue in July-September: EUR 729.5 million (Q3/2006: EUR 652.6 million), up 12%. - Operating profit: EUR 79.5 million (EUR 75.1 million), up 6%; up 12% when excluding the effect of non-recurring items. - Earnings per share: EUR 0.43 (EUR 0.37), up 16%. - Full-year revenue, operating profit, and earnings per share are expected to show an increase from their 2006 levels. KEY FIGURES AND RATIOS EUR million 7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006** % % REVENUE 729.5 652.6 12 2 155.8 1 853.0 16 2 522.5 EBITDA 113.0 105.6 7 285.5 262.0 9 317.2 EBITDA, % 15.5% 16.2% 13.2% 14.1% 12.6% OPERATING 79.5 75.1 6 186.0 172.1 8 193.7 PROFIT Operating 10.9% 11.5% 8.6% 9.3% 7.7% profit, % Operating profit, excluding non-recurring items 65.8 59.0 12 170.5 141.9 20 170.5 Financial income and expenses -11.8 -11.6 -36.6 -24.5 -37.2 PROFIT BEFORE 68.3 63.8 7 151.3 146.4 3 154.2 TAX Profit before 9.4% 9.8% 7.0% 7.9% 6.1% tax, % NET PROFIT 52.9 45.9 15 113.5 104.5 9 112.2 EPS, EUR 0.43 0.37 16 0.91 0.84 8 0.90 Capital 2 018.6 1 832.8 2 018.9 1 832.8 1 876.6 employed* ROCE, %* 10.3% 11.2% 10.3% 11.2% 10.2% Cash flow after investments, excluding acquisitions 47.7 73.0 -76.2 75.5 155.0 Personnel at 10 048 9 119 10 048 9 119 9 327 period-end * 12-month rolling average ** Prior year correction included (see page 8) REVENUE AND OPERATING PROFIT FOR JULY-SEPTEMBER Kemira Group's revenue for July-September 2007 rose by 12% year on year, to EUR 729.5 million (Q3/2006: EUR 652.6 million). Acquisitions contributed to EUR 83.1 million of the growth in revenue while divestments decreased revenue by EUR 6.4 million. Organic growth in local currencies was 1%. The currency effect had a EUR 9 million, or 1%, negative impact on revenue. Revenue by business area: EUR million 7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006 Kemira Pulp&Paper 253.1 261.9 768.5 729.3 993.3 Kemira Water 187.4 101.7 542.5 296.1 467.6 Kemira Specialty 109.8 112.8 323.9 339.0 456.2 Kemira Coatings 182.3 164.6 506.8 453.5 562.8 Other, including -3.1 11.6 14.1 35.1 42.6 eliminations Total 729.5 652.6 2 155.8 1853.0 2522.5 Operating profit for July-September grew by 6%, to EUR 79.5 million. Operating profit included non-recurring income of EUR 13.7 million (EUR 75.1 million, including EUR 16.1 million in non-recurring income). Excluding the effect of non-recurring items, operating profit increased by 12%. The weakened US dollar had a negative impact on both revenue and operating profit. Operating profit by business area: EUR million 7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006 Kemira Pulp&Paper 23.6 24.3 70.0 70.7 90.8 Kemira Water 14.9 9.0 39.8 25.0 35.3 Kemira Specialty 10.0 11.7 27.4 34.7 45.8 Kemira Coatings 38.9 39.0 79.0 73.6 72.1 Other -7.9 -8.9 -30.1 -31.9 -50.3 Total 79.5 75.1 186.0 172.1 193.7 Non-recurring items included in operating profit: EUR million 7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006 Kemira Pulp&Paper 1.2 3.0 2.5 10.6 11.0 Kemira Water - - - 0.3 -0.2 Kemira Specialty 1.3 - 1.3 2.1 3.6 Kemira Coatings 11.2 13.1 11.2 16.4 16.4 Other - - 0.5 0.8 -7.6 Total 13.7 16.1 15.5 30.2 23.2 Profit before tax came to EUR 68.3 million (63.8) and net profit totaled EUR 52.9 million (45.9). The Group's full-year tax rate is expected to fall to 25 per cent, which is why less tax has been recorded for the third quarter than for previous quarters. REVENUE AND OPERATING PROFIT FOR JANUARY-SEPTEMBER In January-September 2007, Kemira Group's revenue rose by 16% year on year, to EUR 2,155.8 million (1,853.0). This growth can be primarily attributed to acquisitions, which contributed EUR 301.7 million to revenue growth, while divestments depressed revenue by EUR 22.4 million. Organic growth in local currencies was 3%. The currency effect had a 2% negative impact on revenue. Operating profit for January-September grew by 8%, to EUR 186.0 million (172.1). Operating profit includes non-recurring items, with their net effect on operating profit amounting to EUR +15.5 million, compared with the EUR +30.2 million reported a year ago. Excluding the effect of non-recurring items, operating profit increased by 20%. Operating profit as a percentage, excluding non-recurring items, rose to 7.9% (7.7). RESEARCH AND DEVELOPMENT In January-September, reported research and development expenditure totaled EUR 46.4 million (38.0) accounting for 2.2% of revenue (2.1%). CAPITAL EXPENDITURE Gross capital expenditure, excluding acquisitions, amounted to EUR 178.7 million (96.8) in January-September. The largest ongoing investments involve a chemical plant under construction at the site of the Botnia pulp mill in Uruguay (EUR 32.9 million), a paint factory under construction in the Stockholm area (EUR 11.7 million), the introduction of a new ERP system for the entire Group (EUR 15.9 million), and the environmental investment in Pori (EUR 11.2 million). Maintenance investments represented 26% of capital expenditure, excluding acquisitions. In the January-September period, Group depreciation came to EUR 99.5 million (89.9). Gross capital expenditure, including acquisitions worth EUR 47.2 million (108.1), totaled EUR 225.9 million (204.9). Cash flow from the sale of assets, including the repayment of Kemapco loans, was EUR 11.4 million negative (proceeds of 64.2). The Group's net capital expenditure totaled EUR 237.3 million. FINANCIAL POSITION AND CASH FLOWS In January-September, the Group reported positive cash flows of EUR 113.9 million from operating activities (108.1). The Group generated a negative net cash flow of EUR 237.3 million from investing activities, of which acquisitions accounted for an outflow of EUR -47.2 million. Kemira showed a free cash flow of EUR -123.4 million (-32.6). On September 30, 2007, the Group's net liabilities stood at EUR 998.9 million (December 31, 2006: EUR 827.4 million), this growth being primarily due to investments and acquisitions carried out during the period. At the period-end, interest-bearing liabilities stood at EUR 1,059.1 million. Fixed-rate loans accounted for roughly 24% of total interest-bearing net loans. The average interest rate on the Group's interest-bearing liabilities was 5.15%. The duration of the Group's interest-bearing loan portfolio on September 30, 2007, was 14 months (December 31, 2006: 16 months). The amount of the revolving credit facility that falls due in 2012, in use on September 30, 2007, was EUR 168.8 million. At the end of September, the equity ratio stood at 39% (December 31, 2006: 39%), while gearing was 88% (December 31, 2006: 76%). In the January-September period, net financial expenses increased to EUR 36.6 million (24.5), due to increases in loans raised and higher market interest rates. In October 2006, Kemira signed a credit facility enabling six Group companies to sell certain account receivables to a finance company. The related credit risk transfers to the finance company and the receivables are derecognized from the Group companies' balance sheets. The amount of outstanding sold receivables on September 30, 2007, was EUR 23 million (December 31, 2006: EUR 15.7 million). The Group's most important exchange rate risk arises from USD denominated exports from the euro area. Approximately 70% of the exchange rate risk, equivalent annually to EUR 50 million, due to exposure to the US dollar, was hedged during the quarter. In addition, the company is exposed to a USD risk when USD denominated items are converted into euro in the financial statements. Revenue for Kemira's US-based business accounted for 20% of the Group's revenue. HUMAN RESOURCES The number of Group employees totaled 10,048 on September 30 (December 31, 2006: 9,327) KEMIRA PULP&PAPER Kemira Pulp&Paper is the world's leading supplier of pulp and paper chemicals, its extensive solutions spanning the pulp and paper industry's value chain from pulp to paper coating. EUR million 7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006 % % REVENUE 253.1 261.9 -3 768.5 729.3 5 993.3 EBITDA 35.7 36.2 -1 106.1 105.1 1 137.1 EBITDA, % 14.1% 13.8% 13.8% 14.4% 13.8% OPERATING 23.6 24.3 -3 70.0 70.7 -1 90.8 PROFIT Operating 9.3% 9.3% 9.1% 9.7% 9.1% profit, % Operating profit, excluding non-recurring items 22.4 21.3 5 67.5 60.1 12 79.8 Capital 804.1 813.7 804.1 813.7 819.5 employed * ROCE, %* 11.2% 11.2% 11.2% 11.2% 11.0% Capital expenditure, excluding acquisitions 19.2 15.1 62.3 47.1 77.6 Cash flow after investments, excluding acquisitions 11.5 18.8 -7.3 39.9 65.1 Personnel at 2 334 2 306 2 334 2 306 2 304 period-end * 12-month rolling average In July-September, Kemira Pulp&Paper reported revenue of EUR 253.1 million (261.9). This decrease in revenue was primarily due to the downtime in the pulp mills in Finland during the report period, and the raw material delivery problems experienced at the Maitland hydrogen peroxide plant, which the supplier was able to fix at the end of the period. As a result, there was no organic growth in the period. Furthermore, the exchange rate of the US dollar decreased revenue by 2%. Operating profit for the period totaled EUR 23.6 million (24.3), including EUR 1.2 million in non-recurring income. In 2006, this item amounted to EUR 3.0 million. Operating costs during the construction of the chemical plant in Uruguay had a negative effect, because the plant was not introduced for production use during the period. The weakened US dollar had a negative effect on both revenue and operating profit. Excluding the effect of non-recurring items, operating profit totaled EUR 22.4 million (21.3). Efforts made to improve profitability raised operating profit as a percentage of revenue to 8.8% (8.1), excluding non-recurring items. In August, Finnish Chemicals Oy, a subsidiary of the Kemira Group, received an EU Commission Statement of Objections concerning the selling of sodium chlorate, with regard to alleged antitrust activities during 1994-2000. Kemira Oyj acquired Finnish Chemicals Oy in 2005. Finnish Chemicals has given its reply to the Statement of Objections. In January-September, Kemira Pulp&Paper's revenue grew by 5%, to EUR 768.5 million (729.3) Organic growth in local currencies was 3%. The currency effect had a 3% negative impact on revenue. Revenue was also lowered by the Korean hydrogen peroxide business, divested in 2006. Reported operating profit for January-September 2007 was EUR 70.0 million (70.7), including EUR 2.5 million (10.6) in non-recurring income. Boosted by efficiency-enhancing measures and the successful integration work performed after acquisitions, operating profit excluding the effect of non-recurring items rose by 12%. Excluding the effect of non-recurring items, operating profit as a percentage of revenue rose to 8.8% (8.2). KEMIRA WATER Kemira Water is the world's leading supplier of inorganic coagulants, and ranks third in water treatment polymers. Kemira Water offers customized water treatment and sludge treatment solutions to municipal and private water treatment plants and industry. EUR million 7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006 % % REVENUE 187.4 101.7 84 542.5 296.1 83 467.6 EBITDA 22.1 12.9 71 60.9 37.0 65 53.4 EBITDA, % 11.8% 12.6% 11.2% 12.5% 11.4% OPERATING 14.9 9.0 66 39.8 25.0 59 35.3 PROFIT Operating 7.9% 8.8% 7.3% 8.4% 7.5% profit, % Operating profit, excluding non-recurring items 14.9 9.0 65 39.8 24.7 61 35.5 Capital 423.4 231.7 423.4 231.7 269.2 employed * ROCE, %* 11.9% 14.2% 11.9% 14.2% 13.4% Capital 10.8 3.7 29.6 10.7 19.4 expenditure, excluding acquisitions Cash flow -6.9 5.8 -1.2 6.8 26.7 after investments, excluding acquisitions Personnel at 2 245 1 501 2 245 1 501 1 846 period-end * 12-month rolling average In July-September, Kemira Water's revenue improved by 84% year on year, to EUR 187.4 million (101.7). The acquisition of Cytec, Galvatek, and Parcon in October 2006 increased revenue by a total of EUR 78.0 million. Organic growth in local currencies was 11%. The currency effect had a 3% negative impact on revenue. During the July-September period, operating profit grew by 66% to EUR 14.9 million (9.0). Raw material prices developed moderately during the period. In the beginning of October, Kemira announced it had agreed to acquire Nheel Química Ltda, Brazilia's leading water treatment chemicals company. With this acquisition Kemira, will strengthen its position in the Brazilian and Latin American water treatment market. Nheel Química's production plant is located in Rio Claro, Sao Paulo state. The plant produces the full range of coagulants, which are mainly used for the treatment of drinking water and wastewater. In 2006, Nheel Química's revenue was around EUR 24 million. This acquisition fits well with Kemira's strategy to enhance its position in the fast growing emerging markets. Anti-trust approval and the fulfillment of other terms and conditions are required to close the deal. In the beginning of October, the Finnish city of Oulu introduced a sludge treatment solution based on Kemira's Kemicond concept. Kemicond is a patented sludge treatment solution developed by Kemira. The solution enables a considerable reduction in sludge volume, which generates significant cost savings to Kemira's customers. In January-September, Kemira Water reported year-on-year revenue growth of 83%, to EUR 542.5 million (296.1). Organic growth in the January-September period in local currencies was 7%. The currency effect had a 3% negative impact on revenue. Operating profit grew by 59%, to EUR 39.8 million (25.0). Operating profit as a percentage of revenue fell from 8.4% to 7.3%, due to the lower profitability of the acquired Cytec water treatment chemicals business compared to that ofKemira's other water treatment chemicals business. KEMIRA SPECIALTY Kemira Specialty is the leading supplier of specialty chemicals in selected customer segments, serving customers in a wide array of industries, such as the cosmetics, printing ink, food, feed and detergent industries, through its customer-driven solutions. EUR million 7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006 % % REVENUE 109.8 112.8 -3 323.9 339.0 -4 456.2 EBITDA 17.9 19.6 -9 50.9 58.0 -12 77.0 EBITDA, % 16.3% 17.4% 15.7% 17.1% 16.9% OPERATING 10.0 11.7 -15 27.4 34.7 -21 45.8 PROFIT Operating 9.1% 10.4% 8.5% 10.2% 10.0% profit, % Operating profit, excluding non-recurring items 8.7 11.7 -26 26.1 32.6 -20 42.2 Capital 439.6 457.1 439.6 457.1 451.6 employed * ROCE, %* 8.8% 11.1% 8.8% 11.1% 10.1% Capital expenditure, excluding acquisitions 11.0 9.3 35.6 19.6 30.8 Cash flow after investments, excluding acquisitions 12.4 6.0 -12.0 26.0 53.6 Personnel at 1 039 1 042 1 039 1 042 1 011 period-end * 12-month rolling average In July-September, Kemira Specialty's revenue totaled EUR 109.8 million (112.8). Competition in the titanium dioxide market remained fierce and the average sales price for titanium dioxide was clearly lower than in the previous year. Due to development of the US housing market, American companies have increased the export of titanium dioxide to Europe, which has increased the price competition. In addition, the development of the US dollar has further improved the competitive position of American companies in Europe. Downtime in the production of formic acid due to the expansion of the production line reduced the formic acid sales volume. Due to the decrease in sales prices and sales volumes, organic growth in the period was negative. Furthermore, the currency effect had a 1% negative impact on revenue. Operating profit in July-September came to EUR 10.0 million (11.7), including EUR 1.3 million in non-recurring income, chiefly due to lower titanium dioxide sales prices and the weak US dollar. In August, Kemira announced that it had concluded the evaluation of ownership alternatives for its business unit Pigments. Based on the evaluation, Kemira will remain the owner of Pigments and continue to run it as part of the Kemira Specialty business area along with the ChemSolutions and Chemidet businesses. The ChemSolutions business unit was not integrated into Kemira Pulp&Paper as stated earlier, but will continue in the Kemira Specialty business area. The preliminary outcome of the evaluation process showed that the market value of the Pigments business unit in the current business and financial environment did not correspond to the expected future value of the business. A decision was therefore taken to halt the evaluation process and concentrate on improving the profitability and cash flow of Pigments. The process to assess different ownership alternatives continues for the Chemidet business unit. In the beginning of October, Kemira's subsidiary Kemira Pigments Oy announced it had initiated negotiations under the Act on Codetermination within Undertakings with its personnel. The company is pursuing annual savings of around EUR 4.5 million. The objective is to generate these savings through structural reorganization and operational efficiency enhancement. To generate the targeted savings, the company may need to reduce its personnel by 70 employees. The Pori facility currently employs approximately 650 personnel. In January-September, Kemira Specialty's revenue fell to EUR 323.9 million (339.0). Operating profit was EUR 27.4 million (34.7), including EUR 1.3 million (2.1) in non-recurring income. KEMIRA COATINGS Kemira Coatings is the leading supplier of paints in Northern and Eastern Europe, providing consumers and professionals with branded products. Its products consist of decorative paints and coatings for the woodworking and metal industries. EUR million 7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006 % % REVENUE 182.3 164.6 11 506.8 453.5 12 562.8 EBITDA 43.1 43.2 0 91.6 86.0 7 88.9 EBITDA, % 23.6% 26.2% 18.1% 19.0% 15.8% OPERATING 38.9 39.0 0 79.0 73.6 7 72.1 PROFIT Operating 21.3% 23.7% 15.6% 16.2% 12.8% profit, % Operating profit, excluding non-recurring items 27.7 25.9 7 67.8 57.2 19 55.7 Capital 306.5 303.3 306.5 303.3 310.5 employed * ROCE, %* 25.8% 26.9% 25.8% 26.9% 23.7% Capital expenditure, excluding acquisitions 10.7 4.9 32.9 12.2 22.5 Cash flow after investments, excluding acquisitions 58.0 67.8 34.1 51.6 71.2 Personnel at 3 889 3 587 3 889 3 587 3 494 period-end * 12-month rolling average In July-September, Kemira Coatings increased its revenue by 11% to EUR 182.3 million (164.6). Sales development was favorable in all market areas, particularly in Russia and other CIS countries. Organic growth was 8%. Revenue was further boosted by the acquisition of two Russian industrial coatings companies completed in April 2007, and the launch of operations of the Beijing-based sales company in June. Operating profit for July-September 2007 was EUR 38.9 million (39.0), including EUR 11.2 million (13.1) in non-recurring income. Excluding the effect of non-recurring items, operating profit increased by 7% year on year. In August, Kemira announced that it was pursuing its strategy and strengthening its position in the Russian coatings markets. Kemira Coatings (Tikkurila) decided to build a logistics and customer service center in Moscow, in order to be able to respond to the challenges presented by powerful growth and demand. The value of the investment is approximately EUR 20 million. The center will be built in Mytish, Moscow, and its opening is scheduled for the summer of 2008. Kemira Coatings has been exporting paints and coatings to Russia for decades under the Tikkurila brand name. The company also has local production in the country, totaling six paint factories. These products are sold under brands such as Finncolor and Teks. The objective of the new logistics and customer service center is to bring about a considerable improvement in Tikkurila's customer services in the rapidly growing market in the Moscow area. The center will also include facilities for comprehensive customer training, which is an essential part of Kemira Coatings' marketing. In August, Alcro-Beckers AB, part of Kemira's paints and coatings business, announced its intention to sell its 50% stake in the Swedish filler producer, Scanspac, to Gyproc AB, part of Saint-Gobain. Scanspac's revenue in 2006 totaled approximately SEK 241 million (EUR 26 million). Scanspac is the leading filler producer in the Nordic area with production units in Glanshammar and Sala in Sweden. Since Alcro-Beckers AB focuses on paint manufacturing, this divestment supports the unit's strategy. The divestment was completed at the end of September. Alcro-Beckers AB, part of the Kemira Coatings business, is building a new paint factory in Nykvarn, south of Stockholm, in connection with the company's logistics center. Production in the new factory will be launched during the remainder of the year. Alcro-Beckers has been manufacturing paint in the Lövholmen area in central Stockholm since 1902. It sold its production facility in Stockholm city center last year and will relocate its production operations to Nykvarn in early 2008. In January-September, Kemira Coatings' revenue went up by 12%, to EUR 506.8 million (453.5), with organic growth at 9%. Operating profit rose by 7% to EUR 79.0 million (73.6), including EUR 11.2 million (16.4) in non-recurring income. Excluding the effect of non-recurring items, operating profit increased by 19%. Operating profit as a percentage of revenue increased from 12.6 to 13.4%, excluding non-recurring items. The increase in operating profit was due to favorable sales performance and efficient cost management. OTHER OPERATIONS Other operations include corporate expenses not charged to the business areas, such as some research and development costs and the costs of the Kemira Corporate Center. During the current year, the Group is particularly investing in harmonizing and enhancing its purchasing and logistics processes, and the ERP system and IT services. Development programs and investments of several million euro are aimed at generating cost savings in the forthcoming years as well as increasing agility and flexibility in order to respond to changes in the business environment. Other operations also include the water-soluble fertilizers unit, which is not part of Kemira's core business operations. In February, Kemira sold its shareholding (50%) in Kemira Arab Potash Company Ltd (Kemapco), part of Water Soluble, to Arab Potash Company Ltd (APC). Kemira will continue selling potassium nitrate, produced by the Jordanian plant, for a one-year transition period. During the first quarter of the current year, an error was detected and reported in the calculation of the provision recognized in 2006 due to the closure of the Water Soluble unit. This prior year's error was corrected retrospectively in the last quarter figures of 2006 in accordance with IAS 8. The provision was increased by EUR 8 million, decreasing the result for the last quarter by the same amount. The financial statement section in this interim report provides more detailed information on the correction of this error. KEMIRA OYJ SHARES AND SHAREHOLDERS During January-September, Kemira Oyj shares registered a high of EUR 19.20 and a low of EUR 15.22, the share price averaging EUR 16.96. On September 30, the company's market capitalization, excluding treasury shares, totaled EUR 1,985 million. On September 30, 2007, the company's share capital totaled EUR 221.8 million and the number of registered shares 125,045,000. On August 29, 2007, the State of Finland sold 40,097,420 Kemira Oyj shares to Finnish investors. The sold shares represented 32.1 per cent of Kemira Oyj shares. As a result of this transaction, the State of Finland's shareholding and voting rights fell to 16.52 per cent. In its press release, the State of Finland announced that the shares sold were divided between buyers as follows: - Oras Invest Oy 15.6 per cent - Jari, Jukka and Pekka Paasikivi 1.5 per cent (0.5 per cent each) - Varma Mutual Pension Insurance Company 8.00 per cent - lmarinen Mutual Pension Insurance Company 3.60 per cent - Suomi Mutual Life Assurance Company 1.92 per cent - Sampo Life 1.45 per cent. After the transaction, Kemira issued a notification under chapter 2, section 10 of the Finnish Securities Market Act on a change of ownership. The following owners notified Kemira of a change of ownership on August 29, 2007: - Oras Invest Oy's holding in Kemira Oyj increased to 15.60 per cent - The State of Finland's holding in Kemira Oyj decreased to 16.52 per cent - Varma Mutual Pension Insurance Company's holding in Kemira Oyj increased to 9.71 per cent - Ilmarinen Mutual Pension Insurance Company's holding in Kemira Oyj increased to 5.32 per cent After the transaction, Kemira's main shareholder is Oras Invest Oy and its owners, members of the Paasikivi family. Kemira holds 3,852,323 treasury shares, accounting for 3.1% of outstanding company shares and voting rights. EXTRAORDINARY GENERAL MEETING The extraordinary general meeting of Kemira Oyj was held on October 4, 2007. The EGM elected members of the Board of Directors, the number of whom remained at seven. Honorary Mining Counsellor Pekka Paasikivi was elected as the Chairman and new member of the Board of Directors, and CFO Juha Laaksonen was elected as a new member of the Board of Directors. The current members Elizabeth Armstrong, Eija Malmivirta, Ove Mattsson, Kaija Pehu-Lehtonen and Markku Tapio will continue as members of the Board of Directors until the end of their current term. The EGM decided to dissolve the Supervisory Board and to amend the Articles of Association as follows: 1. Articles 5 and 8 of the Articles of Association regarding Supervisory Board were deleted; and 2. Articles 4, 7 and 18, items 3 and 7-10 of the Articles of Association were amended so that references to the Supervisory Board and its Chairman, Vice Chairmen and members were deleted. At its constitutive meeting, the Board of Directors of Kemira Oyj elected members from among the Board for the Audit Committee and the Nomination and Compensation Committee. The Board's Audit Committee members are Juha Laaksonen, Eija Malmivirta and Kaija Pehu-Lehtonen. The Audit Committee is chaired by Juha Laaksonen. The Board's Nomination and Compensation Committee members are Pekka Paasikivi, Ove Mattsson and Markku Tapio. The Committee is chaired by Pekka Paasikivi. APPOINTMENT IN KEMIRA MANAGEMENT In October, Kemira Group's Board of Directors appointed Harri Kerminen, M.Sc. (Eng.), MBA, 56, as the new CEO of Kemira Group as of January 1, 2008. Mr Kerminen is currently President of Pulp&Paper, Kemira's largest business area. With effect from the same date, Kemira's current President and CEO, Lasse Kurkilahti will become Senior Adviser to the Board of Kemira Group. Mr. Kurkilahti will remain as Senior Adviser for the first quarter of 2008, after which his contract as President and CEO will come to an end in line with a prior agreement. Harri Kerminen has held his current position as President of Kemira Pulp&Paper since 2006. Prior to that, he was responsible for the Kemira Specialty business. In his earlier career with Kemira, he has acted as e.g. Vice President HR of Kemira Chemicals Oy, Manager of the Kemira Oulu plants as well as working on various challenging production site projects both in Finland and abroad. OUTLOOK Full-year revenue, operating profit and earnings per share for 2007 are expected to increase from their 2006 levels. Raw material and energy prices, as well as transportation costs, are projected to behave more moderately than in 2006 although the prices of some oil-based raw materials and of energy appear to be on the rise. Operational risks were presented in the Annual Report and no significant changes have occurred. Since the production-capacity utilization rates of Kemira Pulp&Paper's customers are expected to be high, the business area's revenue and operating profit are anticipated to grow from the previous year's levels. Kemira has successfully integrated companies acquired in 2006 as part of the Group's global pulp and paper chemicals operations, and their favorable contribution to profit performance will be reflected in the growing Far Eastern and South American markets. A chemical plant under construction at the site of a pulp mill in Uruguay will be phased in as the customer's pulp production begins. Kemira Water is expected to increase its revenue and operating profit from 2006 levels, due in particular to the previous acquisitions, and demand for its water treatment chemicals is anticipated to remain at a good level. During 2007, Kemira Water will focus on the integration of acquirees in particular and on the development of new products. Kemira Specialty's revenue and operating profit are anticipated to remain lower than their 2006 levels. Competition is expected to remain tough in the titanium dioxide market. The sales forecast for the remainder of the year is based on stable volumes versus 2006, but with a continuing negative impact on sales revenue from currency and USD based European imports. The business area's sales of organic acids and acid derivatives are anticipated to continue favorably in most areas. Sales revenue from sodium percarbonate, used in detergents, is forecast to be slightly lower than the prior year, with stable volumes and slightly lower prices. The evaluation process for various ownership alternatives for Chemidet is expected to conclude during 2007. Kemira Coatings is expected to generate higher revenue due to demand remaining at a good level in all market areas, with the strongest growth anticipated in Russia and other CIS countries. Operating profit for 2007 is expected to grow year on year spurred by favorable developments in sales and the restructuring undertaken in recent years. Helsinki, October 31, 2007 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. KEMIRA GROUP The figures are unaudited. All figures in this financial report have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. This Interim Consolidated Financial Statement has been prepared in compliance with IAS 34. Kemira Group has corrected a previous year error in accordance with IAS 8. The nature of the error is described in the end of the report. Changes to the accounting policies as of January 1, 2007: - IFRS 7 (Financial Instruments: Disclosures) has been adopted by the Group in 2007 - Revised IAS 1 (Disclosures about capital) has been adopted by the Group in 2007 The Group assesses that the adoption of the revised standards will not have any material effect on its future financial statements. However, the resulting changes will add disclosures to the Financial Statements. INCOME STATEMENT 7-9/2007 7-9/2006 1-9/2007 1-9/2006 2006* EUR million Revenue 729.5 652.6 2,155.8 1,853.0 2,522.5 Other income from operations 6.5 20.1 19.2 41.6 59.2 Expenses -623.0 -567.1 -1,889.5 -1,632.6 -2,264.5 Depreciation -33.5 -30.5 -99.5 -89.9 -123.5 Operating profit 79.5 75.1 186.0 172.1 193.7 Financial income and expenses -11.8 -11.6 -36.6 -24.5 -37.2 Income from associates 0.6 0.3 1.9 -1.2 -2.3 Profit before tax 68.3 63.8 151.3 146.4 154.2 Income tax -15.4 -17.9 -37.8 -41.9 -42.0 Net profit for the 52.9 45.9 113.5 104.5 112.2 period Attributable to: Equity holders of the 51.8 45.0 110.5 101.8 108.6 parent Minority interest 1.1 0.9 3.0 2.7 3.6 Net profit for the 52.9 45.9 113.5 104.5 112.2 period BALANCE SHEET EUR million ASSETS 30.9.2007 31.12.2006* Non-current assets Goodwill 624.8 581.0 Other intangible assets 119.3 108.9 Property, plant and 1,014.1 987.1 equipment Holdings in associates 5.5 8.1 Available-for-sale 85.4 84.3 investments Deferred tax assets 7.5 7.7 Defined benefit pension 24.8 24.6 receivables Other investments 8.4 9.5 Total non-current assets 1,889.8 1,811.2 Current assets Inventories 318.8 293.2 Receivables Interest-bearing 3.5 9.1 receivables Interest-free 653.9 565.4 receivables Total receivables 657.4 574.5 Money market investments - cash equivalents 21.6 35.0 Bank and cash 38.6 41.1 Total current assets 1,036.4 943.8 Non-current assets held 1.5 14.4 for sale Total assets 2,927.7 2,769.4 EQUITY AND LIABILITIES 30.9.2007 31.12.2006* Equity attributable to equity holders of the parent 1,120.6 1,069.9 Minority interest 14.0 12.6 Total equity 1,134.6 1,082.5 Non-current liabilities Interest-bearing 627.5 395.1 non-current liabilities Deferred tax liabilities 116.5 105.9 Pension liabilities 67.9 66.8 Provisions 21.9 63.3 Total non-current 833.8 631.1 liabilities Current liabilities Interest-bearing current 431.6 508.5 liabilities Interest-free current 516.6 522.9 liabilities Provisions 11.1 15.5 Total current liabilities 959.3 1,046.9 Liabilities directly associated with non-current assets classified as held 0.0 8.9 for sale Total liabilities 1,793.1 1,686.9 Total equity and 2,927.7 2,769.4 liabilities Non-current assets held for sale include US- and Canada-based factory sites. * Prior year correction included CONSOLIDATED CASH FLOW STATEMENT EUR million 1-9/2007 1-9/2006 2006 Cash flows from operating activities Adjusted operating 262.3 200.0 232.0 profit Interests -27.3 -18.5 -30.4 Dividend income 2.1 1.9 2.0 Other financing items - -5.1 -1.3 Income taxes paid -24.3 -24.8 -45.1 Total funds from 212.8 153.5 157.2 operations Change in net working -98.9 -45.4 59.6 capital Total cash flows from operating 113.9 108.1 216.8 activities Cash flows from investing activities Capital expenditure for -47.2 -108.1 -297.4 acquisitions Other capital -178.7 -96.8 -164.6 expenditure Proceeds from sale of -11.4 64.2 102.9 assets Net cash used in -237.3 -140.7 -359.1 investing activities Cash flow after investing -123.4 -32.6 -142.3 activities Cash flows from financing activities Change in long-term loans (increase +, decrease -) 60.0 73.5 173.4 Change in long-term loan receivables (decrease +, increase -) -0.7 0.4 1.5 Short-term financing, net (increase +, decrease -) 105.8 23.9 33.8 Dividends paid -60.4 -45.2 -46.3 Other 2.7 15.8 -0.2 Net cash used in financing 107.4 68.4 162.2 activities Net change in cash and cash -16.0 35.8 19.9 equivalents Cash and cash equivalents at end of 60.2 92.1 76.2 period Cash and cash equivalents at beginning of period 76.2 56.3 56.3 Net change in cash and cash -16.0 35.8 19.9 equivalents CONSOLIDATED CASH FLOW STATEMENT 7-9/2007 7-9/2006 Cash flows from operating activities Adjusted operating 96.2 61.1 profit Interests -12.2 -3.3 Dividend income 2.0 0.1 Other financing items - -5.6 Income taxes paid -4.8 -6.9 Total funds from 81.2 45.4 operations Change in net working 9.6 34.4 capital Total cash flows from operating 90.8 79.8 activities Cash flows from investing activities Capital expenditure for -2.6 -5.9 acquisitions Other capital -57.6 -37.2 expenditure Proceeds from sale of 14.6 30.4 assets Net cash used in -45.6 -12.7 investing activities Cash flow after investing 45.2 67.1 activities Cash flows from financing activities Change in long-term loans (increase +, decrease 66.7 29.7 -) Change in long-term loan receivables (decrease +, increase -1.4 -0.3 -) Short-term financing, net (increase +, decrease -110.7 -115.7 -) Dividends paid -0.5 -0.1 Other -1.3 1.1 Net cash used in financing -47.2 -85.3 activities Net change in cash and cash -2.0 -18.2 equivalents Cash and cash equivalents at end of 60.2 92.1 period Cash and cash equivalents at beginning of period 62.2 110.3 Net change in cash and cash -2.0 -18.2 equivalents STATEMENT OF CHANGES IN EQUITY Capital paid-in in Share Share excess of Other Fair value capital issue par value reserves reserve Shareholders' equity at January 1, 2006 221.3 0.0 257.8 2.8 64.3 Net profit for the financial year Dividends paid Treasury shares issued to target group Share-based compensation Options subscribed 0.2 for shares Exchange differences Hedge of net investments in foreign entities Cash flow hedging: amount entered in shareholders' 10.6 equity Acquired minority interest Transfer between restricted and non-restricted equity Other changes Shareholders' equity at September 30, 2006 221.5 0.0 257.8 3.2 74.9 Shareholders' equity at January 1, 2007 221.6 0.0 257.9 3.1 59.6 Net profit for the financial year Dividends paid Treasury shares issued to target group Share-based compensation Options subscribed 0.2 for shares Exchange differences 0.1 Hedge of net investments in foreign entities Cash flow hedging: amount entered in shareholders' -1.5 equity Acquired minority interest Transfer between restricted and non-restricted equity 0.1 Other changes Shareholders' equity at September 30, 2007 221.8 0.0 257.9 3.3 58.1 Exchange Treasury Retained Minority differences shares earnings interests Total Shareholders' equity at January 1, 2006 -33.9 -27.5 520.7 13.7 1,019.2 Net profit for the 101.8 2.7 104.5 financial year Dividends paid -43.6 -2.2 -45.8 Treasury shares issued to target group 0.7 -0.7 0.0 Share-based compensation 0.7 0.7 Options subscribed 0.2 for shares Exchange differences -4.4 0.1 -4.3 Hedge of net investments in foreign entities 2.9 2.9 Cash flow hedging: amount entered in shareholders' 10.6 equity Acquired minority interest -0.8 -0.8 Transfer between restricted and non-restricted equity -0.4 Other changes -0.8 0.1 -0.7 Shareholders' equity at September 30, 2006 -35.4 -26.8 577.7 13.6 1,086.5 Shareholders' equity at January 1, 2007 -30.8 -26.8 585.3 12.6 1,082.5 Net profit for the 110.5 3.0 113.5 financial year Dividends paid -58.2 -2.2 -60.4 Treasury shares issued to target group 0.9 -0.9 0.0 Share-based compensation 1.3 1.3 Options subscribed 0.2 for shares Exchange differences -4.8 0.2 -4.5 Hedge of net investments in foreign entities 3.2 3.2 Cash flow hedging: amount entered in shareholders' -1.5 equity Acquired minority interest 0.4 0.4 Transfer between restricted and non-restricted equity -0.1 Other changes -0.1 -0.1 Shareholders' equity at September 30, 2007 -32.5 -25.9 637.9 14.0 1,134.6 At the end of the year 2006 there were 3,979,670 treasury shares. Of the shares that were granted in connection with the share-based incentive plan 16,796 were returned to Kemira in 2007. A total of 144,143 shares were issued to key persons based on the incentive plan on February 23, 2007. The total equivalent book value of the shares issued amounted to approx. EUR 255,133. The issue does not materially affect the distribution of ownership and voting power in the company. Kemira had in its possession 3,852,323 of its treasury shares at September 30, 2007. Their average acquisition share price was EUR 6.73 and the treasury shares represented 3.1% of the share capital and of the aggregate number of votes conferred by all the shares. The equivalent book value of the treasury shares is EUR 6.8 million. KEY FIGURES 1-9/2007 1-9/2006 2006* Earnings per share, basic and diluted, EUR 0.91 0.84 0.90 Cash flow from operations per share, EUR 0.94 0.89 1.79 Capital expenditure, 225.9 204.9 462.0 EUR million Capital expenditure / 10.5 11.1 18.3 revenue, % Average number of shares (1000), basic *) 121,155 120,853 120,877 Average number of shares (1000), diluted *) 121,194 121,043 121,051 Number of shares at the end of the period (1000), 121,193 120,931 120,988 basic *) Number of shares at the end of the period (1000), 121,193 121,046 121,204 diluted *) Equity per share, attributable to equity holders of the 9.25 8.87 8.85 parent, EUR Equity ratio, % 38.9 42.3 39.2 Gearing, % 88.0 65.6 76.4 Net liabilities, EUR 998.9 712.6 827.4 million Personnel (average) 10,008 9,117 9,186 7-9/2007 7-9/2006 Earnings per share, basic and diluted, EUR 0.43 0.37 Cash flow from operations per 0.75 0.66 share, EUR Capital expenditure, 60.2 43.1 EUR million Capital expenditure / 8.3 6.6 revenue, % Average number of shares (1000), basic *) 121,193 120,934 Average number of shares (1000), diluted *) 121,193 121,043 Number of shares at the end of the period (1000), basic 121,193 120,931 *) Number of shares at the end of the period (1000), 121,193 121,046 diluted *) *) Number of shares outstanding, adjusted by the number of shares bought back. REVENUE BY BUSINESS 7-9/2007 7-9/2006 1-9/2007 1-9/2006 2006* AREA EUR million Kemira Pulp&Paper 253.1 261.9 768.5 729.3 993.3 Kemira Water 187.4 101.7 542.5 296.1 467.6 Kemira Specialty 109.8 112.8 323.9 339.0 456.2 Kemira Coatings 182.3 164.6 506.8 453.5 562.8 Other and Intra-Group sales -3.1 11.6 14.1 35.1 42.6 Total Group 729.5 652.6 2,155.8 1,853.0 2,522.5 OPERATING PROFIT BY 7-9/2007 7-9/2006 1-9/2007 1-9/2006 2006* BUSINESS AREA Kemira Pulp&Paper 23.6 24.3 70.0 70.7 90.8 Kemira Water 14.9 9.0 39.8 25.0 35.3 Kemira Specialty 10.0 11.7 27.4 34.7 45.8 Kemira Coatings 38.9 39.0 79.0 73.6 72.1 Other and -7.9 -8.9 -30.2 -31.9 -50.3 eliminations Total Group 79.5 75.1 186.0 172.1 193.7 CHANGES IN PROPERTY, PLANT AND 1-9/2007 1-9/2006 2006 EQUIPMENT EUR million Carrying amount at 987.1 865.0 865.0 beginning of year Acquisitions of 5.0 27.6 151.9 subsidiaries Increases 155.2 95.3 154.4 Decreases -4.1 -4.2 -42.0 Depreciation and -84.0 -77.7 -106.3 impairments Exchange rate differences and other changes -45.1 -56.0 -35.9 Net carrying amount 1,014.1 850.0 987.1 at end of period CHANGES IN INTANGIBLE 1-9/2007 1-9/2006 2006 ASSETS EUR million Carrying amount at 689.9 629.7 629.7 beginning of year Acquisitions of 19.0 44.5 71.8 subsidiaries Increases 22.4 9.8 18.1 Decreases -0.3 -0.1 -0.4 Depreciation and -15.5 -12.2 -17.2 impairments Exchange rate differences and other changes 28.6 -8.3 -12.1 Net carrying amount 744.1 663.4 689.9 at end of period CONTINGENT 30.9.2007 31.12.2006 LIABILITIES EUR million Mortgages 62.0 64.8 Assets pledged On behalf of own 17.6 19.5 commitments Guarantees On behalf of own 12.1 6.4 commitments On behalf of 7.1 32.6 associates On behalf of others 3.6 1.4 Operating leasing liabilities Maturity within one 14.4 14.9 year Maturity after one 112.3 118.1 year Other obligations On behalf of own 0.3 0.4 commitments On behalf of 2.2 2.3 associates Major off-balance sheet investment commitments Major amounts of contractual commitments for the acquisition of property, plant and equipment on September 30, 2007 were EUR 26 million for the construction of the chemical plant in Uruguay, EUR 16 million for the investment of Kemira Coatings in Russia and EUR 7 million for the environmental investment in Pori. Litigation The Group has extensive international operations and is involved in a number of legal proceedings incidental to these operations. The Group does not expect the outcome of any legal proceedings currently pending to have a materially adverse effect upon the Group's consolidated result. Kemira Chemicals, Inc. has received a grand jury subpoena to produce documents in connection with an investigation by the United States Department of Justice's Antitrust Division, relating to the hydrogen peroxide business in the US. Kemira Oyj, Kemira Chemicals, Inc. and Kemira Chemicals Canada, Inc. have recently received claims or were named in class action lawsuits filed by direct and indirect purchasers of hydrogen peroxide and persalts in US federal and state courts and in Canada. In these civil actions it is alleged that the US plaintiffs suffered damages resulting from a cartel among hydrogen peroxide suppliers. The existence of the United States Departments of Justice's Antitrust Division's investigations and the European Commission's ruling in a case of infringement of competition law in May 2006 are relied upon in support of the allegations. Finnish Chemicals Oy has received in August 2007 from the European Union Comission a statement of objections in respect to competition law infringements by sodium chlorate producers during 1994-2000 to which statement of objections Finnish Chemicals Oy has given its reply. RELATED PARTY Related party transactions have decreased due to the sale of Kemira's 50 % stake in Swedish filler producer Scanspac (joint venture) in September 2007. Transactions with Scanspac represented about 80 % of the Group's related party transactions. Other than that the related party transactions have not changed materially after annual closing 2006. DERIVATIVE INSTRUMENTS EUR million 30.9.2007 31.12.2006 Nominal Fair Nominal Fair value value value value Currency instruments Forward contracts 458.0 5.3 389.4 5.5 of which hedges of net investment in a foreign operation - - 19.6 2.2 Currency options Bought 41.2 0.1 42.8 - Sold 21.6 - 45.3 0.2 Currency swaps 148.8 7.0 115.9 8.4 Interest rate instruments Interest rate swaps 111.1 3.7 109.2 4.7 of which cash flow hedge 84.1 3.3 83.8 4.2 Interest rate options Bought 10.0 0.1 - - Sold - - - - Bond futures 10.0 - 10.0 -0.2 of which open 10.0 - 10.0 -0.2 Other instuments Fair value Fair value Electricity forward contracts GWh 944.6 9.1 GWh 1,227.0 10.4 of which cash flow hedge GWh 944.6 9.1 GWh 1,227.0 10.4 Propane swap contracts Tons - - Tons 1,000.0 -0.1 The fair values of the instruments which are publicly traded are based on market valuation on the date of reporting. Other instruments have been valuated based on net present values of future cash flows. Valuation models have been used to estimate the fair values of options. Nominal values of the financial instruments do not necessarily correspond to the actual cash flows between the counterparties and do not therefore give a fair view of the risk position of the Group. BUSINESS COMBINATIONS The Cytec water treatment business Kemira acquired the Cytec Industries, Inc.'s water treating and acryl amide business on October 1, 2006. Cytec's water treatment chemicals product line consists of water treatment solutions for industrial and municipal water treatment plants. The acquisition includes five production plants of which three are located in the US (Mobile/Alabama, Longview/Washington, and Fortier/Louisiana), and two in Europe (Bradford /UK and Botlek/the Netherlands). The acquisition of Cytec's water treatment chemicals business is in line with Kemira's growth strategy. It also enables the Group to significantly broaden its current product portfolio and gain greater geographical presence in key markets and inside key customer segments. The acquired business' market regions include the US, South America, Asia and Europe. The total price of the acquisition is approx. EUR 197 million but the amount is subject to the adjustment of net working capital. Capitalized acquisition costs directly attributed to the combination were 3.1 million on September 30, 2007. The acquisition was financed with Kemira Group's own cash assets and through existing financing agreements. In addition to the purchase of the business (asset purchase agreement) which was closed October 1, 2006, Kemira signed a share purchase agreement to buy the shares of Cytec Manufacturing BV. The closing and payment of the share purchase was on January 11, 2007. Kemira has also signed transition service agreements with nine Cytec companies concerning certain transition services with respect of the products of the business (Overseas units). The assets related to these transition service agreements will be transferred to Kemira and paid gradually starting on April 1 and ending on November 2007. One of those asset transfers will be in the form of a share purchase of an existing company. The control over the whole Cytec water treatment business was transferred to Kemira on October 1, 2006. The purchase price allocation of the Cytec water treatment business has been made for the September 30, 2007 financial statements. The fair values of the business combination's intangible assets consist of global patents, customer related assets and manufacturing knowhow. Business combination has been done preliminarily since the business transfers of the Overseas units are still on-going according to the plan. Carrying Fair values amounts recorded on prior business to business combination combination Intangible assets 15.5 - Property, plant and 91.0 54.7 equipment Inventories 28.6 33.3 Trade receivables and other 39.8 34.9 receivables Cash and cash 0.3 0.3 equivalents Total assets 175.2 123.2 Interest bearing - - current liabilities Other liabilities 11.8 12.8 Deferred tax 1.9 - liabilities Total liabilities 13.7 12.8 Net assets 161.5 110.4 Cost of business 197.2 combination (net) Goodwill 35.7 Acquisition cost 197.2 Overseas units -7.6 Cash and cash equivalents in subsidiary acquired -0.3 Cash outflow on 189.3 acquisition The revenue of the acquired unit for January 1 - September 30, 2007 totaled EUR 205.4 million and operating profit EUR 10.3 million. DEFINITIONS OF KEY FIGURES Earnings per share Equity ratio, %: (EPS): Net profit Shareholders' equity x 100 / attributable to equity holders Total assets - prepayments of the parent / received Average number of shares Cash flow from Gearing, %: operations: Cash flow from Interest-bearing net operations, after change in liabilities x 100 / net working capital Shareholders' equity and before investing activities Cash flow from Net liabilities: operations per share: Liabilities - bank and cash - Cash flow from money market investments operations / Average number of shares Equity per share: Return on capital employed Equity attributable to (ROCE), %: equity holders of the parent Operating profit + at share end of quarter / of associates' Number of shares at results x 100 / end of quarter (Net working capital + property, plant and equipment available for use + intangible assets + investments in associates) *) *) Average PRIOR PERIOD ERROR An error was discovered related to the financial statements of 2006 and has been corrected retrospectively according to IAS 8. The error was related to the calculation of the provision made for the closure of the Water Soluble business unit and as a result of this the provision was reported 8 million euro too low. This has been corrected to the fourth quarter result of 2006. The income statement of full year 2006 and the balance sheet at December 31, 2006 were changed as follows: INCOME STATEMENT Reported Corrected EUR million 2006 2006 Revenue 2,522.5 2,522.5 Other income from 59.2 59.2 operations Expenses -2,256.5 -2,264.5 Depreciation -123.5 -123.5 Operating profit 201.7 193.7 Financial income and -37.2 -37.2 expenses Income from associates -2.3 -2.3 Profit before tax 162.2 154.2 Income tax -42.0 -42.0 Net profit for the 120.2 112.2 period Attributable to: Equity holders of the 116.6 108.6 parent Minority interest 3.6 3.6 Net profit for the 120.2 112.2 period KEY FIGURES Reported Corrected 2006 2006 Earnings per share, basic and diluted, EUR 0.96 0.90 BALANCE SHEET Reported Corrected EUR million 31.12. 31.12. 2006 2006 Equity attributable to equity holders of the 1,077.9 1,069.9 parent Total equity 1,090.5 1,082.5 Provisions 55.3 63.3 Total non-current 623.1 631.1 liabilities Retrospective restated quarterly figures are presented as appendix to this interim report. QUARTERLY EARNINGS PERFORMANCE 2006 (Unaudited figures) 1-3 4-6 7-9 10-12 Total Revenue Kemira Pulp&Paper 209.5 257.9 261.9 264.0 993.3 Kemira Water 92.3 102.1 101.7 171.5 467.6 Kemira Speciality 118.6 107.6 112.8 117.2 456.2 Kemira Coatings 118.6 170.3 164.6 109.3 562.8 Other and intra-Group sales 13.9 9.6 11.6 7.5 42.6 Total 552.9 647.5 652.6 669.5 2,522.5 Operating profit Kemira Pulp&Paper 26.0 20.4 24.3 20.1 90.8 Kemira Water 6.4 9.6 9.0 10.3 35.3 Kemira Speciality 11.3 11.7 11.7 11.1 45.8 Kemira Coatings 9.6 25.0 39.0 -1.5 72.1 Other including eliminations -7.8 -15.2 -8.9 -18.4 -50.3 Total 45.5 51.5 75.1 21.6 193.7 Financial income and expenses -7.1 -5.8 -11.6 -12.7 -37.2 Share of associates' results -0.9 -0.6 0.3 -1.1 -2.3 Profit before tax 37.5 45.1 63.8 7.8 154.2 Income tax -10.9 -13.1 -17.9 -0.1 -42.0 Net Profit 26.6 32.0 45.9 7.7 112.2 Attributable to Equity holders of the parent 25.8 31.0 45.0 6.8 108.6 Minority interests 0.8 1.0 0.9 0.9 3.6 Net Profit 26.6 32.0 45.9 7.7 112.2 Earnings per share, diluted, EUR 0.21 0.26 0.37 0.06 0.90 Capital employed, 1,876.6 rolling ROCE, % 10.2 % For further information, please contact: Kemira Oyj Timo Leppä, Executive Vice President, Group Communications Tel. +358 10 862 1700 Kemira Oyj Andreas Langhoff, Investor Relations Manager Tel. +358 10 862 1140 Kemira will hold a press conference on its January-September 2007 results for the media and analysts at its head office (Porkkalankatu 3) today, starting at 10.30 a.m. A conference call in English will be held at 1:00 p.m. We kindly request that participants call us around 10 minutes before the conference begins, on +44 (0)20 7162 0025. Kemira is a chemicals group made up of four business areas: Kemira Pulp&Paper, Kemira Water, Kemira Specialty and Kemira Coatings. Kemira is a global group of leading chemical businesses with a unique competitive position and a high degree of mutual synergy. In 2006, Kemira recorded revenue of around EUR 2.5 billion and had a payroll of 9,000 employees. The company operates in 40 countries.
KEMIRA GROUP INTERIM REPORT FOR JANUARY-SEPTEMBER 2007: KEMIRA S REVENUE UP BY 12% IN Q3
| Source: Kemira Oyj