(Stock Exchange Release)
Second part of the release
KEMIRA GROUP
The figures are audited.
All figures in this financial report have been rounded and
consequently the
sum of individual figures can deviate from the presented sum figure.
This Financial Statement has been prepared in compliance
with IFRS standards. 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.
10-12/ 10-12/
INCOME STATEMENT 2007 2006* 2007 2006*
EUR million
Revenue 654.4 669.5 2,810.2 2,522.5
Other operating
income 13.0 17.6 45.9 59.2
Expenses -636.0 -631.9 -2,539.2 -2264.5
Depreciation and
impairments -74.3 -33.6 -173.8 -123.5
Operating profit -42.9 21.6 143.1 193.7
Financial income and
expenses -15.3 -12.7 -51.9 -37.2
Income from associates 0.2 -1.1 2.1 -2.3
Profit before tax -58.0 7.8 93.3 154.2
Income tax 12.0 -0.1 -25.8 -42.0
Net profit for the -46.0 7.7 67.5 112.2
period
Attributable to:
Equity holders of the -46.8 6.8 63.7 108.6
parent
Minority interest 0.8 0.9 3.8 3.6
Net profit for the -46.0 7.7 67.5 112.2
period
BALANCE SHEET
EUR million
31.12. 31.12.
ASSETS 2,007 2006*
Non-current assets
Goodwill 626.6 581.0
Other intangible 112.3 108.9
assets
Property, plant and 984.3 987.1
equipment
Holdings in 5.5 8.1
associates
Available-for-sale 102.2 84.3
investments
Deferred tax assets 5.2 7.7
Defined benefit pension 34.6 24.6
receivables
Other investments 6.4 9.5
Total non-current assets 1,877.1 1,811.2
Current assets
Inventories 311.2 293.2
Receivables
Interest-bearing 3.2 9.1
receivables
Interest-free 548.1 565.4
receivables
Total receivables 551.3 574.5
Money market investments -
cash equivalents 21.4 35.0
Cash and cash 31.2 41.1
equivalents
Total current assets 915.1 943.8
Non-current assets held 35.7 14.4
for sale
Total assets 2,827.9 2,769.4
EQUITY AND LIABILITIES
31.12. 31.12.
2,007 2006*
Equity attributable to
equity
holders of the parent 1,072.0 1,069.9
Minority interest 15.3 12.6
Total equity 1,087.3 1,082.5
Non-current
liabilities
Interest-bearing 431.1 395.1
non-current liabilities
Deferred tax 105.5 105.9
liabilities
Pension liabilities 74.2 66.8
Provisions 18.8 63.3
Total non-current 629.6 631.1
liabilities
Current liabilities
Interest-bearing current 625.0 508.5
liabilities
Interest-free current 473.6 522.9
liabilities
Provisions 6.2 15.5
Total current 1,104.8 1,046.9
liabilities
Liabilities directly associated
with non-current
assets classified as held 6.2 8.9
for sale
Total liabilities 1,740.6 1,686.9
Total equity and 2,827.9 2,769.4
liabilities
In connection with the strategic review process, it was
decided to classify the assets and liabilities of
strategic business unit Chemidet as assets held for
sale. The strategic business unit belongs to Kemira
Specialty Business Area. There are negotiations on going
for disposal. The loss recognised in the income
statement amounts to EUR 9.2 million.
The non-current assets held for sale includes also a
land area in Porkkala Finland. The sale contract was
signed in 2007 but the ownership of the land will
transfer in 2008.
* Year 2006 error has been
corrected.
CONSOLIDATED CASH FLOW STATEMENT
EUR million 2007 2006
Cash flows from operating
activities
Adjusted operating 281.1 232.0
profit
Interests -36.3 -30.4
Dividend income 2.0 2.0
Other financing - -1.3
items
Income taxes paid -35.6 -45.1
Total funds from 211.2 157.2
operations
Change in net working -39.1 59.6
capital
Total cash flows from operating 172.1 216.8
activities
Cash flows from investing
activities
Capital expenditure for -66.6 -297.4
acquisitions
Other capital -254.4 -164.6
expenditure
Proceeds from sale of -0.2 102.9
assets
Net cash used in -321.2 -359.1
investing activities
Cash flow after investing -149.1 -142.3
activities
Cash flows from financing
activities
Change in long-term
loans
(increase +, decrease -) 53.7 173.4
Change in long-term loan
receivables
(decrease +, increase -) 2.5 1.5
Short-term financing,
net
(increase +, decrease -) 117.8 33.8
Dividends paid -60.8 -46.3
Other 12.3 -0.2
Net cash used in financing 125.5 162.2
activities
Net change in cash and cash -23.6 19.9
equivalents
Cash and cash equivalents at end 52.6 76.2
of period
Cash and cash
equivalents at
beginning of period 76.2 56.3
Net change in cash and cash -23.6 19.9
equivalents
STATEMENT OF CHANGES IN EQUITY
Capital
paid-in in
Share excess of Fair Exchange
value
capital par value reserve differences
Shareholders' equity
at
January 1, 2006 221.3 257.8 67.1 -33.9
Net profit for the - - - -
financial year *
Dividends paid - - - -
Treasury shares
issued
to target group - - - -
Share-based compensation - - - -
Options subscribed 0.3 0.1 - -
for shares
Exchange differences - - - -1.5
Hedge of net investments
in foreign entities - - - 4.5
Cash flow hedging: amount
entered in shareholders' - - -4.7 -
equity
Acquired minority interest - - - -
Transfer between
restricted and
non-restricted equity - - 0.3 -
Other changes - - - -
Shareholders' equity
at
December 31, 2006 221.6 257.9 62.7 -30.9
Shareholders' equity
at
January 1, 2007 221.6 257.9 62.7 -30.9
Net profit for the - - - -
financial year
Dividends paid - - - -
Available-for-sale
assets - change in
fair value - - 7.2 -
Treasury shares
issued
to target group - - - -
Share-based compensation - - - -
Options subscribed 0.2 - - -
for shares
Exchange differences - - - -16.2
Hedge of net investments
in foreign entities - - - 6.0
Cash flow hedging: amount
entered in shareholders' - - -1.9 -
equity
Acquired minority interest - - - -
Transfer between
restricted and
non-restricted equity - - 0.2 -
Other changes - - - -
Shareholders' equity
at
December 31, 2007 221.8 257.9 68.2 -41.1
Treasury Retained Minority
shares earnings interests Total
Shareholders' equity
at
January 1, 2006 -27.5 520.7 13.7 1,019.2
Net profit for the - 108.6 3.6 112.2
financial year *
Dividends paid - -43.6 -2.8 -46.4
Treasury shares
issued
to target group 0.7 -0.7 - 0.0
Share-based compensation - 1.1 - 1.1
Options subscribed - - - 0.4
for shares
Exchange differences - - 0.4 -1.1
Hedge of net investments
in foreign entities - - - 4.5
Cash flow hedging: amount
entered in shareholders' - - - -4.7
equity
Acquired minority interest - - -2.3 -2.3
Transfer between
restricted and
non-restricted equity - -0.3 - 0.0
Other changes - -0.4 - -0.4
Shareholders' equity
at
December 31, 2006 -26.8 585.4 12.6 1,082.5
Shareholders' equity
at
January 1, 2007 -26.8 585.4 12.6 1,082.5
Net profit for the - 63.7 3.8 67.5
financial year
Dividends paid - -58.2 -2.6 -60.8
Available-for-sale
assets - change in
fair value - - - 7.2
Treasury shares
issued
to target group 0.8 -0.8 - 0.0
Share-based compensation - 1.1 - 1.1
Options subscribed - - - 0.2
for shares
Exchange differences - - 0.9 -15.3
Hedge of net investments
in foreign entities - - - 6.0
Cash flow hedging: amount
entered in shareholders' - - - -1.9
equity
Acquired minority interest - - 0.4 0.4
Transfer between
restricted and
non-restricted equity - -0.2 - 0.0
Other changes 0.1 0.1 0.2 0.4
Shareholders' equity
at
December 31, 2007 -25.9 591.1 15.3 1,087.3
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 18,938 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 3,854,465 of its treasury
shares at December 31, 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.
*Year 2006 error has been
corrected.
KEY FIGURES 2007 2006*
Earnings per share, basic
and
diluted, EUR 0.53 0.90
Earnings per share
excluding write-downs,
basic and diluted, 0.87 0.90
EUR
Cash flow from operations
per share, EUR 1.42 1.79
Capital expenditure, EUR 321.0 462.0
million
Capital expenditure / 11.4 18.3
revenue, %
Average number of shares
(1000),
basic 1) 121,164 120,877
Average number of shares
(1000),
diluted 1) 121,194 121,051
Number of shares at the
end
of the period (1000), 121,191 120,988
basic 1)
Number of shares at the
end of the
period (1000), 121,191 121,204
diluted 1)
Equity per share,
attributable to
equity holders of the 8.85 8.85
parent, EUR
Equity ratio, % 38.6 39.2
Gearing, % 92.3 76.4
Interest-bearing net 1,003.4 827.4
liabilities, EUR million
Personnel (average) 10,008 9,186
10-12/ 10-12/
2,007 2006*
Earnings per share, basic
and
diluted, EUR -0.39 0.06
Earnings per share
excluding write-downs,
basic and diluted, -0.05 0.06
EUR
Cash flow from operations per 0.48 0.90
share, EUR
Capital expenditure, EUR 95.1 257.1
million
Capital expenditure / 14.5 38.4
revenue, %
Average number of shares
(1000),
basic 1) 121,191 120,950
Average number of shares
(1000),
diluted 1) 121,191 121,099
Number of shares at the
end of the
period (1000), basic 121,191 120,988
1)
Number of shares at the
end of the
period (1000), 121,191 121,204
diluted 1)
1) Number of shares outstanding,
excluding the
number of shares bought
back.
* Year 2006 error has been
corrected.
REVENUE BY BUSINESS AREA 10-12/ 10-12/
2007 2006 2007 2006
EUR million
Kemira Pulp&Paper 249.8 264.0 1,018.3 993.3
Kemira Water 188.0 171.5 730.5 467.6
Kemira Specialty 102.0 117.2 425.9 456.2
Kemira Coatings 118.4 109.3 625.2 562.8
Other and Intra-Group
sales -3.8 7.5 10.3 42.6
Total Group 654.4 669.5 2,810.2 2,522.5
OPERATING PROFIT BY 10-12/ 10-12/
2007 2006* 2007 2006*
BUSINESS AREA
Kemira Pulp&Paper -3.2 20.1 66.8 90.8
Kemira Water 5.2 10.3 45.0 35.3
Kemira Specialty -13.9 11.1 13.5 45.8
Kemira Coatings -5.9 -1.5 73.1 72.1
Other and -25.1 -18.4 -55.3 -50.3
eliminations
Total Group -42.9 21.6 143.1 193.7
* Year 2006 error has been
corrected.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT 2007 2006
EUR million
Carrying amount at 987.1 865.0
beginning of year
Acquisitions of 14.3 151.9
subsidiaries
Increases 215.7 154.4
Decreases -2.5 -42.0
Depreciation and -133.2 -106.3
impairments
Exchange rate differences
and
other changes -89.3 -35.9
Net carrying amount at end 984.3 987.1
of period
CHANGES IN INTANGIBLE 2007 2006
ASSETS
EUR million
Carrying amount at 689.9 629.7
beginning of year
Acquisitions of 32.2 71.8
subsidiaries
Increases 30.4 18.1
Decreases -0.3 -0.4
Depreciation and -40.6 -17.2
impairments
Exchange rate differences
and
other changes 27.4 -12.1
Net carrying amount at end 738.9 689.9
of period
CONTINGENT LIABILITIES 31.12. 31.12.
2007 2006
EUR million
Mortgages 62.1 64.8
Assets pledged
On behalf of own 6.0 19.5
commitments
Guarantees
On behalf of own 8.3 6.4
commitments
On behalf of associates 1.4 32.6
On behalf of others 2.8 1.4
Operating leasing
liabilities
Maturity within one year 22.4 14.9
Maturity after one 129.0 118.1
year
Other obligations
On behalf of own 0.4 0.4
commitments
On behalf of associates 2.3 2.3
Major off-balance sheet investment
commitments
Major amounts of contractual commitments for
the acquisition
of property, plant and equipment on December 31, 2007
were
EUR 16 million for the investment of Kemira
Coatings in Russia and
EUR 3 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.
Kemira Oyj, Kemira Chemicals, Inc. and Kemira Chemicals
Canada, Inc. have 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. To avoid further litigation costs Kemira Oyj
and Kemira Chemicals Inc. have made a settlement
agreement, pending court approval, in the US direct
purchaser class action. As regards the other claims and
suits, the proceedings continue.
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
31.12.2007 31.12.2006
Nominal Fair Nominal Fair
value value value value
Currency instruments
Forward contracts 942.9 -1.4 389.4 5.5
of which hedges of
net investment
in a foreign - - 19.6 2.2
operation
Currency options 123.3 0.3 88.1 0.2
Bought 65.5 0.1 42.8 -
Sold 57.8 0.2 45.3 0.2
Currency swaps 147.2 6.5 115.9 8.4
Interest rate instruments
Interest rate swaps 174.0 2.3 109.2 4.7
of which cash flow hedge 164.0 2.0 83.8 4.2
Interest rate options 10.0 - - -
Bought 10.0 - - -
Sold - - - -
Bond futures 10.0 0.2 10.0 -0.2
of which open 10.0 0.2 10.0 -0.2
Other instuments Fair value Fair value
Electricity forward
contracts GWh 833.6 10.0 GWh 1,227.0 10.4
of which cash flow
hedge GWh 833.6 10.0 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 business 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 allows 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 198.5
million. The acquisition was financed with Kemira
Group's own existing financing agreements.
In addition to the purchase of the business through the
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 agreement took place on
January 11, 2007. Kemira has also signed transition
service agreements with nine Cytec companies concerning
certain transactional services with respect of the
products of the business (Overseas units). The assets
related to these transition service agreements was
transferred to Kemira and paid gradually starting on
April 1, 2007. One of these asset transfers was 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 preliminary purchase price allocation was pending
finalization of overseas units, working capital and
liabilities. These matters have been finalized since
then, resulting in an increase of goodwill mainly from
indentified defined benefit pensions according to IAS
19.
Fair
values Carrying
re- amounts
corded prior
on busi- to busi-
ness ness
combi- combi-
nation nation
Intangible assets 15.5 -
Property, plant and 91.0 54.7
equipment
Inventories 28.8 27.1
Trade receivables and
other receivables 40.6 40.6
Cash and cash equivalents 2.0 2.0
Total assets 177.9 124.4
Interest bearing current 5.4 5.4
liabilities
Other liabilities 18.2 18.2
Deferred tax 1.7 -
liabilities
Total liabilities 25.3 23.6
Net assets 152.6 100.8
Cost of business
combination (net) 198.5
Goodwill 45.9
Acquisition cost 198.5
Cash and cash
equivalents
in subsidiary
acquired -2.0
Cash outflow on 196.5
acquisition
Cash outflow on acquisition 2006 166.2
Cash outflow on acquisition 2007 30.3
Cash outflow on 196.5
acquisition
The revenue of the acquired unit for January 1 - December 31, 2007
totaled EUR 291.3 million and operating profit EUR 12.3 million.
The Dalquim coagulant
business
Kemira acquired on April 20, 2007 100% of the shares of
two companies (Empresa Lajeana Ltda. & Arapoti
Saneamento Ltda.) conducting the coagulant business of
Dalquim Industria e Comercio Ltda. Dalquim is one of the
leading manufacturers of aluminum based coagulants in
the South of Brazil. The revenue of the coagulant
business is approximately EUR 12 million.
The target companies are located in the south of Brazil
and have two production units. Main customer base is the
paper industry and municipalities for potable and
wastewater treatment. The company will be targeting the
fast expanding paper industry and potable and waste
water treatment sector in the Southern states of Brazil.
The acquisition fits extremely well in Kemira's strategy
to enhance its position and mutual synergies as a world
leader in chemicals supply for both pulp&paper and water
treatment customers on fast growing emerging markets.
Kemira Water is already present with production in the
Bahia region (North East of Brazil) and in the Sao Paulo
state. With this acquisition Kemira will significantly
broaden its current product portfolio in Brazil and gain
strong geographical presence in the southern Brazilian
market.
The total price of the acquisition is approx. EUR 10.8
million. Capitalized acquisition costs directly
attributable to the combination has not yet been
finalized. The acquisition was financed with Kemira
Group's own existing financing agreements.
Of the total purchase price of EUR 10,8 million, EUR 1,2
million was allocated to intangible assets coming from
existing customer list. The acquisition then results in
EUR 9,0 million in goodwill, based on the acquired
business's expected future earnings and attainable
synergies.
Fair
values Carrying
re- amounts
corded prior
on busi- to busi-
ness ness
combi- combi-
nation nation
Intangible assets 1.2 -
Property, plant and 0.8 0.8
equipment
Inventories 0.2 0.2
Trade receivables and
other receivables 1.4 1.4
Cash and cash equivalents 0.1 0.1
Total assets 3.7 2.5
Deferred tax 0.4 -
liabilities
Other liabilities 1.5 1.5
Total liabilities 1.9 1.5
Net assets 1.8 1.0
Cost of business
combination (net) 10.8
Goodwill 9.0
Acquisition cost 10.8
Cash and cash
equivalents
in subsidiary
acquired -0.1
Cash outflow on 10.7
acquisition
The revenue of the acquired unit for April 1 - December 31, 2007
totaled EUR 7.5 million and operating profit EUR 1.7 million.
Aggregate of other business
acquisitions
Kemira made the following acquisitions in 2007: TRI-K
Industries Inc. (100%), Sustainable Nutrition B.V.
(100%), Dickursby Holding AB (70%), OOO Gamma Industrial
Coatings (70%), OOO Tikkurila Powder Coatings (70%),
Chongqing Lanjie Tap Water Materials Co. (80%) and the
Arkema coagulant business.
These business combinations are individually immaterial.
Fair
values Carrying
re- amounts
corded prior
on busi- to busi-
ness ness
combi- combi-
nation nation
Trade marks and trade 3.9 -
names
Other intangible assets 5.4 4.7
Property, plant and 5.6 4.5
equipment
Inventories 4.7 4.7
Trade receivables and
other receivables 3.1 2.9
Cash and cash equivalents 0.2 0.2
Total assets 22.9 17.0
Deferred tax 1.4 -
liabilities
Long-term liabilities 0.3 0.3
Other liabilities 4.8 4.8
Total liabilities 6.5 5.1
Net assets 16.4 11.9
Cost of business
combination (net) 24.0
Goodwill 7.6
Acquisition cost 24.0
Cash and cash
equivalents
in subsidiary
acquired -0.2
Cash outflow on 23.8
acquisition
Effect of business combinations on revenue and
profit
Kemira's revenue for Jan. 1-Dec. 31, 2007 would have
been EUR 3,159 million and operating profit EUR 159
million if all of the business combinations carried out
during the period had been completed on January 1, 2007.
DEFINITIONS OF KEY FIGURES
Earnings per share (EPS): Equity ratio, %:
Net profit attributable to Shareholders' equity x 100 /
equity holders Total assets - prepayments
of the parent / received
Average number of shares
Cash flow from operations: Gearing, %:
Cash flow from operations, Interest-bearing net
after change in liabilities x 100 /
net working capital Total equity
and before investing
activities
Cash flow from operations Interest-bearing net
liabilities:
per share: Interest-baring liabilities -
cash -
Cash flow from operations money market investments
/
Average number of shares
Equity per share: Return on capital employed
Equity attributable to (ROCE), %:
equity
holders of the parent Operating profit + share
at
end of year / of profit or loss of associates
Number of shares at results x 100 /
end of year (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:
Cor-
INCOME STATEMENT Reported rected
EUR million 2006 2 006
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 Cor-
Reported rected
2006 2 006
Earnings per share, basic
and diluted, EUR 0.96 0.90
BALANCE SHEET Cor-
EUR million Reported rected
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 %
This is the end of the second part II/II
