Kemira Oyj

Quarterly Report • Apr 24, 2015

Interim Report

JANUARY-MARCH 2015

PERFORMANCE CONTINUED TO IMPROVE

• Revenue increased 4% to EUR 553.0 million (529.9) supported by favorable currency exchange rates. Revenues in local currencies, excluding acquisitions and divestments remained flat.
• Operative EBITDA increased 15% to EUR 66.4 million (57.5) with a margin of 12.0% (10.9%).
• Earnings per share decreased to EUR 0.16 (0.28). Comparable period included a capital gain of EUR 37 million related to the divestment of formic acid business.
• Kemira maintains its outlook for 2015.

Kemira's President and CEO Jari Rosendal:

"Kemira's year started according to plan. The revenue in the first quarter increased by 8%, excluding the impact of the divested formic acid business in Q1 2014. Operative EBITDA margin improved from 10.9% to 12.0% in Q1 2015. The strengthened U.S. dollar was the main reason for revenue growth. Nearly 40% of Kemira's revenue is either directly U.S. dollar-based or linked to the U.S dollar, like the Chinese renminbi.

Growth in the Paper segment was solid in the first quarter, supported by favorable currency exchange rates and stable organic growth. Organic growth was driven by increased sales of new innovative solutions to our packaging board and paper customers, thus improving their operational efficiency as well as their endproduct quality. In addition, pulp chemical deliveries to Montes del Plata pulp mill in Uruguay continued in line with the ramp up of the new mill.

In the Oil & Mining segment, demand for our products for US shale operations has slowed down in Q1 due to significant reduction in the drilling and fracking activity in the region. Uncertainty around the US shale operations is expected to continue at least for the next couple of quarters. Strong U.S. dollar alleviates the situation to some extent but reaching topline growth in the Oil & Mining segment will be challenging in 2015. In the longer term, we remain optimistic about the growth in the business.

I am pleased with the continued good progress in the Municipal & Industrial segment. The segment's revenue has stabilized after the restructuring period, and profitability has improved substantially, over 30% in the first quarter of 2015.

The closure of AkzoNobel's paper chemical business acquisition is now expected to take place in Q2 2015, due to the pending approval from the competition authority in Ukraine. Our readiness to start the integration is very good.

I consider Kemira to be well positioned to focus on growth with clear strategic objectives, customer-driven innovation, responsible business practices, and engaged and skilled professionals."

KEY FIGURES AND RATIOS

	Jan-Mar	Jan-Mar
EUR million	2015	2014	2014
Revenue	553.0	529.9	2,136.7
Operative EBITDA	66.4	57.5	252.9
Operative EBITDA, %	12.0	10.9	11.8
EBITDA	65.2	77.7	252.9
EBITDA, %	11.8	14.7	11.8
Operative EBIT	39.1	36.3	158.3
Operative EBIT, %	7.1	6.9	7.4
EBIT	37.8	54.3	152.6
EBIT, %	6.8	10.2	7.1
Share of profit or loss of associates	0.2	0.0	0.2
Financing income and expense	-7.5	-5.3	-30.7
Profit before tax	30.5	49.0	122.1
Net profit	26.4	43.1	95.8
Earnings per share, EUR	0.16	0.28	0.59
Operative earnings per share	0.13	0.15	0.63
Capital employed*	1,466.2	1,460.0	1.427.7
Operative ROCE*	11.0	10.8	11.1
ROCE*	9.3	4.0	10.7
Capital expenditure	27.0	25.6	145.1
Cash flow after investing activities	16.0	130.3	75.2
Equity ratio, % at period-end	48	50	51
Gearing, % at period-end	49	30	42
Personnel at period-end	4,285	4,267	4,248

*12-month rolling average (ROCE, % based on the reported EBIT)

Definitions of key figures are available at www.kemira.com > Investors > Financial information. Comparative 2014 figures are provided in parentheses for some financial results, where appropriate. Operative EBITDA, operative EBIT, operative earnings per share and operative ROCE do not include non-recurring items.

FINANCIAL PERFORMANCE IN JANUARY – MARCH 2015

Kemira Group's revenue increased 4% to EUR 553.0 million (529.9). Revenue in local currencies, excluding acquisitions and divestments, remained unchanged. Sales volumes grew in the Paper and the Municipal & Industrial segments and could more than compensate for the lower sales volumes in the Oil & Mining segment. Sales price changes had a small negative impact on revenue. Currency exchange had 8% positive impact. Acquisitions had a small positive impact and divestments an impact of -4% on the revenues.

In the Paper segment, revenues increased 12% to EUR 314.6 million (280.4). Revenue growth in local currencies, excluding acquisitions and divestments, was 4%, driven mainly by higher sales volumes in EMEA and in the Americas' regions, as well as by favorable pricing. Currency exchange impacted revenues by 7%. The acquisition of BASF AKD emulsion business had a small positive impact on the revenue.

In the Oil & Mining segment, revenues increased 2% to EUR 93.9 million (92.0). Revenue in local currencies, excluding acquisitions and divestments, decreased 11% due to lower sales volumes of polyacrylamides used in the US shale operations. Sales prices remained close to the level of the first quarter in 2014. However, as a consequence of the lower oil price, sales prices started to decline towards the end of the quarter. Currency exchange had a 13% impact on the revenue.

In the Municipal & Industrial segment, revenues increased 5% to EUR 144.5 million (137.7). Revenue in local currencies, excluding acquisitions and divestments, decreased 1% as lower sales prices were only partly compensated by higher sales volumes, especially in the Americas. Currency exchange impacted revenues by 6%.

	Jan-Mar	Jan-Mar
Revenue, EUR million	2015	2014	∆%
Paper	314.6	280.4	12
Oil & Mining	93.9	92.0	2
Municipal & Industrial	144.5	137.7	5
ChemSolutions	-	19.8	-
Total	553.0	529.9	4

EBITDA decreased to EUR 65.2 million (77.7). Non-recurring items affecting the EBITDA were EUR -1 million (20). The comparable period in 2014 included a capital gain of EUR 37 million related to the divestment of the formic acid business, provisions related to a streamlining of Kemira's operations, restructuring charges and write-downs of assets.

The operative EBITDA increased 15% to EUR 66.4 million (57.5) supported by the development of the continued favorable currency exhange rates. In local currencies, increased sales volumes and lower variable costs drove operative EBITDA slightly higher. Positive impact of increased sales volumes could more than compensate for the EUR 3 million higher fixed costs. Decreased costs of oil price dependent raw materials were the main reason for EUR 4 million lower variable costs. The impacts were most evident in the Municipal & Industrial and the Oil & Mining segments, having in relative terms the biggest exposure to oil price-related products and raw materials within Kemira's business portfolio. Sales price changes had a negative impact of EUR 3 million, partly as a result of lower oil price-related raw material costs. Acquisitions and divestments had small positive impacts on the operative EBITDA variance (see variance analysis on page 5). The operative EBITDA margin improved to 12.0% (10.9%).

Variance analysis, EUR million	Jan-Mar
Operative EBITDA, 2014	57.5
Sales volumes	3.6
Sales prices	-3.0
Variable costs	4.2
Fixed costs	-3.0
Currency exchange	6.5
Others, incl. acquisitions and divestments	0.6
Operative EBITDA, 2015	66.4

	Jan-Mar 2015	Jan-Mar 2014	Jan-Mar 2015		Jan-Mar 2014
Operative EBITDA	EUR, million	EUR, million	∆%	%-margin	%-margin
Paper	36.1	33.1	9	11.5	11.8
Oil & Mining	11.1	10.7	4	11.8	11.6
Municipal & Industrial	19.2	14.5	32	13.3	10.5
ChemSolutions	-	-0.8	-	-	-
Total	66.4	57.5	15	12.0	10.9

Financing income and expense totaled EUR -7.5 million (-5.3), Changes in the fair values of electricity derivatives were EUR -0.2 million (-0.4). Currency exchange differences, mainly related to U.S. dollar and Brasilian real, had an impact of EUR -3.5 million (0.2).

Net profit attributable to the owners of the parent company decreased to EUR 25.0 million (41.9) and the earnings per share to EUR 0.16 (0.28). Comparable period included a capital gain of EUR 37 million related to the divestment of the formic acid business.

FINANCIAL POSITION AND CASH FLOW

Cash flow from the operating activities in January-March 2015 was EUR 42.4 million (13.1). Cash flow after investing activities decreased to EUR 16.0 million (130.3). The comparable period included proceeds of EUR 131 million related to the divestment of formic acid business. The net working capital ratio was 10.2% of the revenue (9.9% on December 31, 2014).

At the end of the period, Kemira Group's net debt was EUR 562 million (486 on December 31, 2014). Net debt increased mainly due to the dividend payment.

At the end of the period, interest-bearing liabilities totaled EUR 687 million (605 on December 31, 2014). Fixed-rate loans accounted for 73% of the net interest-bearing liabilities (82% on December 31, 2014). The average interest rate of the Group's interest-bearing liabilities was 2.0% (2.1% on December 31, 2014). The duration of the Group's interest-bearing loan portfolio was 18 months (23 months on December 31, 2014).

Short-term liabilities maturing in the next 12 months amounted to EUR 225 million, thereof commercial papers issued in the Finnish market, representing EUR 70 million and the short term part of the long-term loans representing EUR 87 million. On March 31, 2015, cash and cash equivalents totaled EUR 126 million.

At the end of the period, the equity ratio was 48% (51% on December 31, 2014), while the gearing was 49% (42% on December 31, 2014). Shareholder's equity was EUR 1,156.4 million (1,163.3 on December 31, 2014).

CAPITAL EXPENDITURE

In January-March 2015, capital expenditure increased 5% to EUR 27.0 million (25.6) mainly due to currency exchange rate fluctuations. Capex can be broken down as follows: expansion capex 48% (64%), improvement capex 31% (20%), and maintenance capex 21% (16%). Expansion investments related mainly to a greenfield investment in a sodium chlorate plant in Brazil.

In January-March 2015, the Group's depreciation and impairments increased to EUR 27.4 million (23.4). The completion of construction activities on greenfield sites in Nanjing, China and Tarragona, Spain in 2014, and the currency exchange rate fluctuations drove the depreciation higher.

RESEARCH AND DEVELOPMENT

In January-March 2015, the Research and Development expenses totaled EUR 7.7 million (6.8), representing 1.4% (1.3%) of Kemira Group's revenue.

CORPORATE RESPONSIBILITY

Responsibility focus areas	KPI's and KPI target values	Status Q1 2015
Sustainable products and solutions
Innovation sales total revenue	Share of innovation revenue of 10% 5%  10% by the end of 2016	5%	7%	8%	8%	10%
	0%	2012	2013	2014	Q1 2015	2016
Responsibility for employees
Leadership development	People managers participated in 100%				95%
	global leadership programs at least once in the period 2013– 50% 2015, cumulative %	39%	46%	46%
	0%  > 95% by the end of 2015	2013	2014	Q1 2015	2015

Employee engagement	Employee Engagement Index  Index at or above the external industry norm by the end of 2015	87% 85% 84% 100% 75% 70% 69% 58% 50%
	Participation rate in Voices@Kemira  75–85% by the end of 2015	0% 2009 2011 2013 2015 Engagement Participation
Occupational health and safety	Number of Total Recordable Injuries (TRI) (per million hours, Kemira + contractor, 1 year rolling average)  Achieve zero injuries	8.5 10 7.1 6.6 5.8 5 0 2012 2013 2014 Q1 2015
Responsible supply chain
Code of Conduct for Suppliers, Distributors and Agents	Supplier contracts with signed CoC-SDA as attachments  90% by the end of 2015	93% 90% 100% 78% 36% 50% 0% 2013 2014 Q1 2015 2015
Responsible manufacturing
Climate change	Kemira Carbon Index performance  Index ≤ 80 by end of 2020 (baseline year 2012 = 100)	150 109 104 102 100 89.2 86.8 80 100 50 0 2009 10 11 12 13 14 2020 Kemira Carbon index is calculated and reported on annual basis.
	Responsibility toward the communities where we operate
Participation in local community involvement activities	Kemira sites with more than 50 employees participated in local community involvement initiatives at least once in period 2013– 2015, cumulative %  100% by the end of 2015	92% 92% 100% 100% 48% 50% 0% 2013 2014 Q1 2015 2015

HUMAN RESOURCES

At the end of the period, Kemira Group had 4,285 employees (4,248 on December 2014). Kemira employed 768 people in Finland (759), 1,650 people elsewhere in EMEA (1,654), 1,511 in the Americas (1,483), and 356 in APAC (352).

SEGMENTS

Paper

Paper has unique expertise in applying chemicals and supporting pulp & paper producers to innovate and constantly improve their operational efficiency. We develop and commercialize new products to fulfill customer needs and to ensure the leading portfolio of products and services for paper wet-end, focusing on packaging and board, as well as tissue. We leverage our strong pulp & paper application portfolio in North America and EMEA and build a strong position in China, Indonesia and Brazil.

	Jan-Mar	Jan-Mar
EUR million	2015	2014	2014
Revenue	314.6	280.4	1,170.0
Operative EBITDA	36.1	33.1	137.2
Operative EBITDA, %	11.5	11.8	11.7
EBITDA	35.0	30.7	109.9
EBITDA, %	11.1	10.9	9.4
Operative EBIT	20.7	21.9	85.8
Operative EBIT, %	6.6	7.8	7.3
EBIT	19.6	19.4	57.6
EBIT, %	6.2	6.9	4.9
Capital employed*	907.0	857.8	881.2
ROCE*	6.4	5.5	6.5
Capital expenditure	17.7	12.3	83.0
Cash flow after investing activities	9.6	-2.1	-10.1

*12-month rolling average

The Paper segment's revenue increased 12% to EUR 314.6 million (280.4) as a result of the positive currency exchange impact of 7% and organic growth of 4%. The acquisition of BASF AKD emulsion business in Q2 2014 had also a small positive impact. Sales volumes grew in EMEA and in the Americas, mainly driven by differentiated product lines such as sizing, polymers and strength chemicals, as well as sodium chlorate. Sales prices, especially for the differentiated product lines, increased slightly compared to the first quarter in 2014 and had a small positive impact on revenue.

In EMEA, revenue increased by 5%, mainly driven by the higher sales volumes of polymer and sizing products. In the Americas, revenue growth accelerated and was 25% due to favorable currency exchange rates and continued sales volumes growth of differentiated products such as sizing and strength chemicals. Pulp chemical deliveries to Montes del Plata, a new 1.3 million ton pulp mill in Uruguay, also continued to contribute to the revenue growth. In APAC, revenue grew by 14% supported by the strengthened Chinese

renminbi. The continued ramp-up of Kemira's new production site in Nanjing, China resulted in a small positive impact on the revenues.

The operative EBITDA increased 9% to EUR 36.1 million (33.1), mainly due to continued solid sales volume growth. The favorable translational currency effect was partly eroded by unfavorable currency transactions, especially in case of U.S. dollar-based costs and Canadian dollar-based revenues. Increased sales prices could compensate for the somewhat higher variable costs. Higher variable costs were driven by increased colorants related raw materials and alpha olefin prices. Fixed costs were EUR 5 million higher due to the continued focus on sales and marketing, as well as the development of new innovative solutions to improve customer processes and end-product quality. Higher manufacturing expenses and fixed costs related to the new manufacturing site in Nanjing, China also had a negative impact on the operative EBITDA. The operative EBITDA margin reached 11.5% (11.8%).

OIL & MINING

O&M provides a unique combination of innovative chemicals and application knowledge that improves process efficiency and yield in oil, gas and metals recovery. We use our in-depth understanding of extraction processes to tailor solutions for water management and re-use. Expanding from our position in North America and EMEA, we continue to build a strong base for growth in South America, Middle East, and Africa.

	Jan-Mar	Jan-Mar
EUR million	2015	2014	2014
Revenue	93.9	92.0	382.2
Operative EBITDA	11.1	10.7	48.4
Operative EBITDA, %	11.8	11.6	12.7
EBITDA	11.0	8.9	46.2
EBITDA, %	11.7	9.7	12.1
Operative EBIT	5.8	6.3	29.9
Operative EBIT, %	6.2	6.8	7.8
EBIT	5.7	4.5	27.7
EBIT, %	6.1	4.9	7.2
Capital employed*	249.2	209.4	239.5
ROCE*	11.6	3.2	11.5
Capital expenditure	4.6	4.4	26.3
Cash flow after investing activities	5.1	10.9	20.6

*12-month rolling average

The Oil & Mining segment's revenue increased 2% to EUR 93.9 million (92.0). The currency exchange impact of 13% more than compensated for the impact of declined sales volumes. Sales volumes were negatively impacted by the lower horizontal drilling and fracking activity in the US. Sales price changes did not have a material impact on revenues in the first quarter. However, toward the end of the quarter, sales prices started to decline and the impact became more apparent.

In the Americas, revenue grew 3% supported by the strengthened U.S. dollar that more than compensated for the decreased sales volumes of polyacrylamides used in the US shale operations. The majority of the

revenue in the Americas region is related to polyacrylamides used in horizontal drilling and stimulation. The recent steep decline in oil prices has negatively impacted horizontal drilling and stimulation activity and thus driven lower demand for Kemira's polyacrylamides. Sales prices remained close to the level of the comparable period in 2014.

In EMEA, revenues showed signs of stabilization and remained largerly unchanged compared to the comparable quarter in 2014. Sales volumes and prices were impacted by continued market softness in the mining industry. Sequentially, the revenues improved by more than 5% partly as a result of favorable currency exchange rates.

The operative EBITDA increased 4% to EUR 11.1 million (10.7), mainly due to the lower variable costs that could compensate for the effects of lower sales volumes and slightly lower average sales prices. Variable costs were lower due to decreases in certain oil price-driven raw material prices. Fixed costs remained unchanged. During the quarter, Kemira continued to focus on the research and development, especially on the development of new technologies for chemically enhanced oil recovery. Currency exchange had a positive impact on the operative EBITDA. The operative EBITDA margin was 11.8% (11.6%).

MUNICIPAL & INDUSTRIAL

M&I is a leading water chemicals supplier for raw and wastewater applications in EMEA and North America, and aims to capture selected growth opportunities in emerging markets. We enable our municipal and industrial customers to improve their water treatment efficiency by supplying them with competitive, high-performing products and value adding application support.

	Jan-Mar	Jan-Mar
EUR million	2015	2014	2014
Revenue	144.5	137.7	564.7
Operative EBITDA	19.2	14.5	68.1
Operative EBITDA, %	13.3	10.5	12.1
EBITDA	19.2	2.6	61.3
EBITDA, %	13.2	1.9	10.9
Operative EBIT	12.6	8.8	43.3
Operative EBIT, %	8.7	6.4	7.7
EBIT	12.5	-5.2	31.7
EBIT, %	8.7	-3.8	5.6
Capital employed*	310.8	340.1	309.4
ROCE*	15.9	-10.7	10.2
Capital expenditure	4.7	8.3	35.2
Cash flow after investing activities	8.2	-3.1	34.3

*12-month rolling average

The Municipal & Industrial segment's revenue increased 5% to EUR 144.5 million (137.7) due to 6% impact of favorable currency exchange rates. Revenue in local currencies remained close to a level of the comparable period. Sales volumes increased especially in the Americas region. Sales prices decreased

mainly due to lower oil price related raw material prices.

In EMEA, the revenue stabilization continued after a restructuring period as a result of the increased sales volumes of polymers used in the municipal and industrial sludge treatment. Sales prices were lower mainly due to the tightening competition, as well as a consequence of the lower raw material prices.

In the Americas, revenue growth accelerated and was 25% as a result of the favorable currency exchange rates, as well as the higher sales volumes of coagulants used in the municipal water treatment. Sales volumes were driven by accelerated sales and marketing efforts that are focused on retaining Kemira's market leadership position in the municipal raw and wastewater treatment, especially in certain regions in North America.

Revenue growth in APAC continued close to double-digit rate and was mainly driven by favorable currency exchange rates.

The operative EBITDA increased 32% to EUR 19.2 million (14.5) with an improved margin of 13.3% (10.5%) due to higher sales volumes and lower operating costs. Fixed costs were lower than in the comparable period due to continued efficiency improvements. The impact of unfavorable sales price changes was compensated by lower variable costs. Variable costs were lower due to the synergies achieved from the 3F acquisition and lower oil price-related raw material costs. Toward the end of the quarter, the prices of certain raw materials increased, particularly for chlorine and hydrochloric acid in the Americas region. Currency exchange rate fluctuations had a small positive impact on the operative EBITDA.

KEMIRA OYJ'S SHARES AND SHAREHOLDERS

On March 31, 2015, Kemira Oyj's share capital amounted to EUR 221.8 million and the number of shares was 155,342,557. Each share entitles to one vote at the Annual General Meeting.

At the end of March, Kemira Oyj had 33,694 registered shareholders (33,164 at the end of December 2014). Non-Finnish shareholders held 18.2% of the shares (18.9% at the end of December 2014), including nominee registered holdings. Households owned 16.3% of the shares (16.1% at the end of December 2014). Kemira held 3,291,185 treasury shares (3,291,185 at the end of December, 2014) representing 2.1% (2.1% at the end of December 2014) of all company shares.

Kemira Oyj's share price increased 17% during the quarter and closed at EUR 11.54 on the NASDAQ OMX Helsinki at the end of March 2015 (9.89 at the end of December 2014). Shares registered a high of EUR 12.27 and a low of EUR 9.13 in January-March 2015. The average share price was EUR 10.61. The company's market capitalization, excluding treasury shares, was EUR 1,755 million at the end of March 2015 (1,504 at the end of December 2014). In January-March 2015, Kemira Oyj's share trading volume on NASDAQ OMX Helsinki remained largerly unchanged at 26.5 million (26.7). The average daily trading volume was 427,012 (430,404) shares. Source: NASDAQ OMX. Kemira Oyj's share trading volume on other trading facilities was 11 million (10) or 29% (27%) of the total amount of traded shares. Source: Fidessa.

AGM DECISIONS

Annual General Meeting

Kemira Oyj's Annual General Meeting, held on March 23, 2015, decided on the dividend of EUR 0.53 per share. The dividend was paid out on April 1, 2015. The Annual General Meeting re-elected six members to the Board of Directors. Members Wolfgang Büchele, Winnie Fok, Juha Laaksonen, Timo Lappalainen, Jari Paasikivi and Kerttu Tuomas were re-elected to the Board of Directors. Jari Paasikivi was re-elected as Board's Chairman and Kerttu Tuomas was re-elected to continue as the Vice Chairman.

The AGM 2015 authorized the Board of Directors to decide upon the repurchase of a maximum of 4,500,000 company's own shares ("Share repurchase authorization"). Shares will be repurchased by using unrestricted equity, either through a tender offer with equal terms to all shareholders at a price determined by the Board of Directors or otherwise than in proportion to the existing shareholdings of the company's shareholders in public trading on the NASDAQ OMX Helsinki Ltd (the "Helsinki Stock Exchange") at the market price quoted at the time of the repurchase.

The price paid for the shares repurchased through a tender offer under the authorization shall be based on the market price of the company's shares in public trading. The minimum price to be paid would be the lowest market price of the share quoted in public trading during the authorization period and the maximum price the highest market price quoted during the authorization period.

Shares shall be acquired and paid for in accordance with the Rules of the Helsinki Stock Exchange and Euroclear Finland Ltd.

Shares may be repurchased to be used in implementing or financing mergers and acquisitions, developing the company's capital structure, improving the liquidity of the company's shares or to be used for the payment of the annual fee payable to the members of the Board of Directors or implementing the company's share-based incentive plans. In order to realize the aforementioned purposes, the shares acquired may be retained, transferred further or cancelled by the company. The Board of Directors will decide on other terms related to the share repurchase. The Share repurchase authorization is valid until the end of the next Annual General Meeting.

The Annual General Meeting authorized the Board of Directors to decide to issue a maximum of 15,600,000 new shares and/or transfer a maximum of 7,800,000 company's own shares held by the company ("Share issue authorization"). The new shares may be issued and the company's own shares held by the company may be transferred either for consideration or without consideration. The new shares may be issued and the company's own shares held by the company may be transferred to the company's shareholders in proportion to their current shareholdings in the company, or by disapplying the shareholders' pre-emption right through a directed share issue, if the company has a weighty financial reason to do so, such as financing or implementing mergers and acquisitions, developing the capital structure of the company, improving the liquidity of the company's shares or if this is justified for the payment of the annual fee payable to the members of the Board of Directors or implementing the company's share-based incentive plans. The directed share issue may be carried out without consideration only in connection with the implementation of the company's share-based incentive plan. The subscription price of new shares shall be recorded to the

invested unrestricted equity reserves. The consideration payable for company's own shares shall be recorded to the invested unrestricted equity reserves. The Board of Directors will decide on other terms related to the share issues. The Share issue authorization is valid until May 31, 2016.

The AGM elected Deloitte & Touche Oy as the company's auditor, with Jukka Vattulainen, Authorized Public Accountant, acting as the principal auditor.

BOARD COMMITTEES

On March 2015, the Board of Directors of Kemira Oyj elected members among themselves for the Audit Committee and the Personnel and Remuneration Committee. The Board's Audit Committee members are Juha Laaksonen, Timo Lappalainen and Jari Paasikivi. The Audit Committee is chaired by Juha Laaksonen. The Board's Personnel and Remuneration Committee members are Juha Laaksonen, Jari Paasikivi and Kerttu Tuomas. The Personnel and Remuneration Committee is chaired by Jari Paasikivi.

Changes to company management

On February 26, 2015 Esa-Matti Puputti, (Lic.Sc. Tech) was appointed Executive Vice President, Operational Excellence and a member of Kemira's Management Board. Esa-Matti Puputti will start in this position on May 18, 2015.

On March 16, 2015, Kemira announced the appointment of Mats Rönnbäck as interim President, Paper segment and Asia Pacific region, and a member of Kemira's Management Board as of April 1, 2015.

OTHER EVENTS DURING THE REVIEW PERIOD

On March 23, 2015, Kemira announced that the completion of the AkzoNobel paper chemical business is expected in the second quarter of 2015. Closing of the transaction was previously expected in the first quarter of 2015. Closing is subject to customary closing conditions, including completion of employee consultation proceedings and approvals of competition authorities in certain countries. Employee consultation proceedings have been completed and competition approvals have been received, except the approval from the Ukrainian competition authority.

SHORT-TERM RISKS AND UNCERTAINTIES

There have been no significant changes in the Kemira's short-term risks or uncertainties compared to December 31, 2014.

A detailed account of the Kemira's risk management principles and organization is available on the company's website at http://www.kemira.com. An account of the financial risks is available in the Notes to the Financial Statements 2014. Risks are discussed in detail in Kemira's Annual Report 2014 that was published on February 25, 2015.

KEMIRA'S FINANCIAL TARGETS 2017 AND OUTLOOK 2015 (UNCHANGED)

Kemira will continue to focus on improving its profitability and operative cash flow. The company will also continue to invest in order to secure future growth to serve selected water intensive industries.

The company's financial targets for 2017 are:

• revenue EUR 2.7 billion
• Operative EBITDA-% of revenue 15%
• gearing level <60%.

Kemira expects its capital expenditure-to-sales ratio, excluding acquisitions to increase in the next few years from the 2014 level of 6.3%. In addition, Kemira expects its medium-term operative tax rate to be in the range of 22%-25%. This rate excludes non-recurring items.

The basis for growth is the expanding market for chemicals and Kemira's expertise that helps customers in water intensive industries to increase their water, energy and raw material efficiency. The need to increase operational efficiency in our customer industries creates opportunities for Kemira to develop new products and services for both current and new customers. Research and Development is a critical enabler of organic growth for Kemira, providing differentiation capabilities in its relevant markets. Kemira will invest in innovation, technical expertise, and competencies in its selected focus areas.

Outlook for 2015

In 2015, Kemira will focus on profitable growth both organically and inorganically. Kemira's revenue in 2015 is expected to increase compared to 2014 and operative EBITDA in 2015 to remain approximately at the same level or to increase compared to 2014. The outlook excludes the impact of AkzoNobel paper chemical business (acquisition expected to close in the second quarter of 2015). At closing, AkzoNobel paper chemical business is expected to add revenue of more than EUR 200 million on an annualized basis.

Helsinki, April 24, 2015

Kemira Oyj Board of Directors

FINANCIAL CALENDAR 2015 AND 2016

Interim Report January-June 2015 July 22, 2015 Interim Report January-September 2015 October 23, 2015 Financial Statements Bulletin 2015 February 11, 2016 Interim Report January-March 2016 April 26, 2016 Interim Report January-June 2016 July 21, 2016 Interim Report January-September 2016 October 25, 2016 Kemira Capital Markets Day will be held in Espoo R&D Center, Finland on September 17, 2015.

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

CONSOLIDATED INCOME STATEMENT

	1-3/2015	1-3/2014	2014
EUR million
Revenue	553.0	529.9	2,136.7
Other operating income	2.0	43.5	55.2
Operating expenses	-489.8	-495.7	-1,939.0
Depreciation, amortization and impairment	-27.4	-23.4	-100.3
Operating profit (EBIT)	37.8	54.3	152.6
Finance costs, net	-7.5	-5.3	-30.7
Share of profit or loss of associates	0.2	0.0	0.2
Profit before tax	30.5	49.0	122.1
Income tax expense	-4.1	-5.9	-26.3
Net profit for the period	26.4	43.1	95.8
Net profit attributable to:
Equity owners of the parent	25.0	41.9	89.9
Non-controlling interests	1.4	1.2	5.9
Net profit for the period	26.4	43.1	95.8
Earnings per share, basic and diluted, EUR	0.16	0.28	0.59

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	1-3/2015	1-3/2014	2014
EUR million
Net profit for the period	26.4	43.1	95.8
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Available-for-sale financial assets	0.0	0.0	50.0
Exchange differences on translating foreign operations	48.5	-4.4	1.2
Cash flow hedges	-1.2	-1.8	3.4
Items that will not be reclassified subsequently to profit or loss:
Remeasurements on defined benefit pensions	0.0	0.0	-26.6
Other comprehensive income for the period, net of tax	47.3	-6.2	28.0
Total comprehensive income for the period	73.7	36.9	123.8
Total comprehensive income attributable to:
Equity owners of the parent	71.8	35.7	118.3
Non-controlling interests	1.9	1.2	5.5
Total comprehensive income for the period	73.7	36.9	123.8

CONSOLIDATED BALANCE SHEET

	3/31/2015	12/31/2014
EUR million
ASSETS
Non-current assets
Goodwill	500.4	485.6
Other intangible assets	75.5	76.3
Property, plant and equipment	748.1	706.2
Investments in associates	1.1	0.9
Available-for-sale financial assets	293.7	293.7
Deferred tax assets	33.6	33.7
Other investments	9.4	9.2
Defined benefit pension receivables	7.3	7.5
Total non-current assets	1,669.1	1,613.1
Current assets
Inventories	220.0	197.3
Interest-bearing receivables	0.2	0.1
Trade and other receivables	365.4	343.7
Current income tax assets	17.3	22.4
Cash and cash equivalents	125.5	119.1
Total current assets	728.4	682.6
Total assets	2,397.5	2,295.7
EQUITY AND LIABILITIES
Equity
Equity attributable to equity owners of the parent	1,141.9	1,150.7
Non-controlling interests	14.5	12.6
Total equity	1,156.4	1,163.3
Non-current liabilities
Interest-bearing liabilities	462.4	448.3
Other liabilities	21.4	21.4
Deferred tax liabilities	50.5	46.4
Defined benefit pension liabilities	74.5	73.1
Provisions	22.3	23.6
Total non-current liabilities	631.1	612.8
Current liabilities
Interest-bearing current liabilities	224.9	156.9
Trade payables and other liabilities	348.8	327.7
Current income tax liabilities	20.7	17.9
Provisions	15.6	17.1
Total current liabilities	610.0	519.6
Total liabilities	1,241.1	1,132.4
Total equity and liabilities	2,397.5	2,295.7

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

	1-3/2015	1-3/2014	2014
EUR million
Cash flow from operating activities
Net profit for the period	26.4	43.1	95.8
Total adjustments	36.8	0.5	92.8
Operating profit before change in net working capital	63.2	43.6	188.6
Change in net working capital	-13.9	-21.2	-19.4
Cash generated from operations	49.3	22.4	169.2
Finance expenses, net and dividends received	-10.1	-2.6	-61.6
Income taxes paid	3.2	-6.7	-33.4
Net cash generated from operating activities	42.4	13.1	74.2
Cash flow from investing activities
Purchases of subsidiaries, net of cash acquired	-	-	0.6
Other capital expenditure	-27.0	-25.6	-145.7
Proceeds from sale of assets and paid in capital	0.2	142.6	145.5
Change in long-term loan receivables decrease (+) / increase (-)	0.4	0.2	0.6
Net cash used in investing activities	-26.4	117.2	1.0
Cash flow from financing activities
Proceeds from non-current interest-bearing liabilities (+)	-	-	245.0
Repayments from non-current interest-bearing liabilities (-)	-0.1	-12.1	-62.6
Short-term financing, net increase (+) / decrease (-)	61.0	-61.6	-152.9
Dividends paid	-75.4	0.0	-86.0
Other finance items	0.2	0.1	0.1
Net cash used in financing activities	-14.3	-73.6	-56.4
Net decrease (-) / increase (+) in cash and cash equivalents	1.7	56.7	18.8
Cash and cash equivalents at end of period	125.5	158.4	119.1
Exchange gains (+) / losses (-) on cash and cash equivalents	4.7	-0.3	-1.7
Cash and cash equivalents at beginning of period	119.1	102.0	102.0
Net decrease (-) / increase (+) in cash and cash equivalents	1.7	56.7	18.8

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR million
					Equity attributable to equity owners of the parent
				Un
			Fair value	restricted					Non
	Share	Share	and other	equity	Exchange	Treasury	Retained		controlling	Total
	capital	premium	reserves		reserve differences	shares	earnings	Total	interests	Equity
Equity at January 1, 2014	221.8	257.9	64.0	196.3	-40.2	-22.2	434.9	1,112.5	13.0	1,125.5
Net profit for the period	-	-	-	-	-	-	41.9	41.9	1.2	43.1
Other comprehensive income, net of tax	-	-	-1.8	-	-4.4	-	-	-6.2	0.0	-6.2
Total comprehensive income	-	-	-1.8	-	-4.4	-	41.9	35.7	1.2	36.9
Transactions with owners
Dividends paid	-	-	-	-	-	-	*) -80.6	-80.6	-	-80.6
Share-based payments	-	-	-	-	-	-	0.1	0.1	-	0.1
Transactions with owners	-	-	-	-	-	-	-80.5	-80.5	-	-80.5
Equity at March 31, 2014	221.8	257.9	62.2	196.3	-44.6	-22.2	396.3	1,067.7	14.2	1,081.9

*) A dividend was EUR 80.6 million in total (EUR 0.53 per share) in respect of the financial year ended December 31, 2013. The annual general meeting approved EUR 0.53 dividend on March 24, 2014. The dividend record date was March 27, 2014, and the payment date April 3, 2014.

Equity at January 1, 2015	221.8	257.9	117.4	196.3	-38.6	-22.1	418.0	1,150.7	12.6	1,163.3
Net profit for the period	-	-	-	-	-	-	25.0	25.0	1.4	26.4
Other comprehensive income, net of tax	-	-	-1.2	-	48.0	-	-	46.8	0.5	47.3
Total comprehensive income	-	-	-1.2	-	48.0	-	25.0	71.8	1.9	73.7
Transactions with owners
Dividends paid	-	-	-	-	-	-	*) -80.6	-80.6	-	-80.6
Share-based payments	-	-	-	-	-	-	0.2	0.2	-	0.2
Transfers in equity	-	-	0.1	-	-	-	-0.1	0.0	-	0.0
Other changes	-	-	-	-	-	-	-0.2	-0.2	-	-0.2
Transactions with owners	-	-	0.1	-	-	-	-80.7	-80.6	-	-80.6
Equity at March 31, 2015	221.8	257.9	116.3	196.3	9.4	-22.1	362.3	1,141.9	14.5	1,156.4

* ) A dividend was EUR 80.6 million in total (EUR 0.53 per share) in respect of the financial year ended December 31, 2014. The annual general meeting approved EUR 0.53 dividend on March 23, 2015. The dividend record date was March 25, 2015, and the payment date April 1, 2015.

Kemira had in its possession 3,291,185 of its treasury shares on March 31, 2015. The average share price of treasury shares was EUR 6.73 and they represented 2.1% of the share capital and the aggregate number of votes conferred by all shares. The aggregate par value of the treasury shares is EUR 4.7 million.

The share premium is a reserve accumulating through subscriptions entitled by the management stock option program 2001. This reserve based on the old Finnish Companies Act (734/1978), which does not change anymore. The fair value reserve is a reserve accumulating based on available-for-sale financial assets (shares) measured at fair value and hedge accounting. Other reserves originate from local requirements of subsidiaries. The unrestricted equity reserve includes other equity type investments and the subscription price of shares to the extent that they will not, based on a specific decision, be recognized in share capital.

KEY FIGURES

	1-3/2015	1-3/2014	2014
Earnings per share, basic and diluted, EUR 1)	0.16	0.28	0.59
Cash flow from operations per share, EUR 1)	0.28	0.09	0.49
Capital expenditure, EUR million	27.0	25.6	145.1
Capital expenditure / revenue, %	4.9	4.8	6.8
Average number of shares, basic (1,000) 1)	152,051	152,042	152,048
Average number of shares, diluted (1,000) 1)	152,373	152,193	152,203
Number of shares at end of period, basic (1,000) 1)	152,051	152,042	152,051
Number of shares at end of period, diluted (1,000) 1)	152,373	152,179	152,373
Equity per share, EUR 1)	7.51	7.02	7.57
Equity ratio, %	48.3	50.0	50.7
Gearing, %	48.6	30.1	41.8
Interest-bearing net liabilities, EUR million	561.8	325.5	486.1
Personnel (average)	4,256	4,363	4,285

1) Number of shares outstanding, excluding the number of shares bought back.

REVENUE BY BUSINESS AREA

	1-3/2015	1-3/2014	2014
EUR million
Paper 2)	314.6	280.4	1,170.0
Oil & Mining	93.9	92.0	382.2
Municipal & Industrial	144.5	137.7	564.7
ChemSolutions 2)	-	19.8	19.8
Total	553.0	529.9	2,136.7

EBITDA BY BUSINESS AREA

	1-3/2015	1-3/2014	2014
EUR million
Paper 2)	35.0	30.7	109.9
Oil & Mining	11.0	8.9	46.2
Municipal & Industrial	19.2	2.6	61.3
ChemSolutions 2)	-	35.5	35.5
Total	65.2	77.7	252.9

OPERATING PROFIT (EBIT) BY BUSINESS AREA

	1-3/2015	1-3/2014	2014
EUR million
Paper 2)	19.6	19.4	57.6
Oil & Mining	5.7	4.5	27.7
Municipal & Industrial	12.5	-5.2	31.7
ChemSolutions 2)	-	35.6	35.6
Total	37.8	54.3	152.6

2) On March 2014, Kemira closed the divestment of formic acid business which had formed the major part of ChemSolutions segment. After the closure, the remaining sodium percarbonate business in ChemSolutions segment was transferred to Paper segment and ChemSolutions segment was discontinued as of the beginning of Q2 2014.

CHANGES IN PROPERTY, PLANT AND EQUIPMENT

	1-3/2015	1-3/2014	2014
EUR million
Book value at beginning of year	706.2	644.5	644.5
Increases	25.3	24.0	124.5
Decreases	-	-1.6	-5.7
Depreciation and impairments	-23.1	-19.6	-84.1
Exchange rate differences and other changes	39.7	-3.1	27.0
Net book value at end of period	748.1	644.2	706.2

CHANGES IN INTANGIBLE ASSETS

	1-3/2015	1-3/2014	2014
EUR million
Book value at beginning of year	561.9	547.2	547.2
Acquisitions of subsidiaries	-	-	-0.1
Increases	1.7	1.7	16.0
Depreciation and impairments	-4.3	-3.8	-16.2
Exchange rate differences and other changes	16.6	-0.3	15.0
Net book value at end of period	575.9	544.8	561.9

DERIVATIVE INSTRUMENTS

	3/31/2015		12/31/2014
EUR million
	Nominal value	Fair value	Nominal value	Fair value
Currency instruments
Forward contracts	259.4	1.1	304.7	1.5
Currency options	5.6	0.0	65.2	0.0
Bought	2.8	0.0	32.6	0.0
Sold	2.8	0.0	32.6	0.0
Interest rate instruments
Interest rate swaps	338.6	0.7	324.5	0.5
of which cash flow hedge	238.6	-2.8	224.5	-2.5
of which fair value hedge	100.0	3.5	100.0	3.0
Other instruments	GWh	Fair value	GWh	Fair value
Electricity forward contracts, bought	1,469.3	-7.4	1,503.6	-5.9
of which cash flow hedge	1,469.3	-7.4	1,503.6	-5.9

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.

FAIR VALUE OF FINANCIAL ASSETS

	3/31/2015				12/31/2014
EUR million
Fair value hierarchy	Level 1	Level 2	Level 3	Total net	Level 1	Level 2	Level 3	Total net
Available-for-sale financial assets	-	-	293.7	293.7	-	-	293.7	293.7
Currency instruments	-	5.1	-	5.1	-	2.9	-	2.9
Interest rate instruments, hedge accounting	-	3.5	-	3.5	-	3.0	-	3.0
Trade receivables	-	283.7	-	283.7	-	265.3	-	265.3
Total	-	292.3	293.7	586.0	-	271.2	293.7	564.9

Level 1: Fair value is determined based on quoted market prices in markets.

Level 2: Fair value is determined by using valuation techniques. The fair value refers to the value that is observable from the market value of elements of financial instrument or from the market value of corresponding financial instrument; or the value that is observable by using commonly accepted valuation models and techniques, if the market value can be measured reliably with them.

Level 3: Fair value is determined by using valuation techniques, which use inputs which have a significant effect on the recorded fair value, and inputs are not based on observable market data.

Level 3 specification	Total net 3/31/2015	Total net 12/31/2014
Instrument
Carrying value at beginning of period	293.7	227.0
Effect on the statement of comprehensive income	0.0	62.5
Increases	0.0	4.4
Decreases	0.0	-0.2
Carrying value at end of period	293.7	293.7

FAIR VALUE OF FINANCIAL LIABILITIES

	3/31/2015				12/31/2014
EUR million
Fair value hierarchy	Level 1	Level 2	Level 3	Total net	Level 1	Level 2	Level 3	Total net
Non-current interest-bearing liabilities	-	475.9	-	475.9	-	461.7	-	461.7
Repayments from non-current interest-bearing liabilities	-	89.5	-	89.5	-	88.1	-	88.1
Loans from financial institutions	-	70.1	-	70.1	-	63.2	-	63.2
Other liabilities	-	96.6	-	96.6	-	41.0	-	41.0
Currency instruments	-	4.0	-	4.0	-	1.4	-	1.4
Interest rate instruments	-	2.8	-	2.8	-	2.5	-	2.5
Other instruments	-	7.4	-	7.4	-	5.9	-	5.9
Trade payables	-	151.9	-	151.9	-	135.2	-	135.2
Total	-	898.2	-	898.2	-	799.0	-	799.0

CONTINGENT LIABILITIES

	3/31/2015	12/31/2014
EUR million
Assets pledged
On behalf of own commitments	6.1	6.0
Guarantees
On behalf of own commitments	54.3	48.4
On behalf of others	3.3	3.3
Operating leasing liabilities
Maturity within one year	33.0	31.1
Maturity after one year	182.8	161.8
Other obligations
On behalf of own commitments	1.2	1.2
On behalf of associates	0.5	0.6

Major off-balance sheet investment commitments

Major amounts of contractual commitments for the acquisition of property, plant and equipment on March 31, 2015 were about EUR 23.4 million for plant investments.

Litigation

Peroxide SA.

On August 19, 2009, Kemira Oyj received a summons stating that Cartel Damage Claims Hydrogen Peroxide SA had filed an action against six hydrogen peroxide manufacturers, including Kemira, for violations of competition law applicable to the hydrogen peroxide business. In its claim, Cartel Damage Claims Hydrogen Peroxide SA seeks an order from the Regional Court of Dortmund in Germany to obtain an unabridged and full copy of the decision of the European Commission, dated May 3, 2006, and demands that the defendants, including Kemira, are jointly and severally ordered to pay damages together with accrued interest on the basis of such decision.

Cartel Damage Claims Hydrogen Peroxide SA has stated that it will specify the amount of the damages at a later stage after the full copy of the decision of the European Commission has been obtained by it. In order to provide initial guidance as to the amount of such damages, Cartel Damage Claims Hydrogen Peroxide SA presents in its claim a preliminary calculation of the alleged overcharge having been paid to the defendants as a result of the violation of the applicable competition rules by the parties which have assigned and sold their claim to Cartel Damage Claims Hydrogen Peroxide SA. In the original summons such alleged overcharge, together with accrued interest until December 31, 2008, was stated to be EUR 641.3 million.

The process is currently pending in the Regional Court of Dortmund, Germany. It has on April 29, 2013 decided to suspend the case and to asked a preliminary ruling on jurisdiction from the Court of Justice of the European Union. Kemira defends against the claim of Cartel Damage Claims Hydrogen Thereafter Cartel Damage Claims Hydrogen Peroxide SA has delivered to the attorneys of the defendants an April 14, 2011 dated brief addressed to the court and an expert opinion. In the said brief the minimum damage including accrued interest until December 31, 2010, based on the expert opinion, is stated to be EUR 475.6 million. It is further stated in the brief that the damages analysis of the expert does not include lost profit.

Kemira Oyj has additionally been served on April 28, 2011 a summons stating that Cartel Damage Claims Hydrogen Peroxide SA had filed an application for summons in the municipal court of Helsinki on April 20, 2011 for violations of competition law applicable to the hydrogen peroxide business claiming from Kemira Oyj as maximum compensation EUR 78.0 million as well as overdue interest starting from November 10, 2008 as litigation expenses with overdue interest. The referred violations of competition law are the same as those on basis of which CDC has taken legal action in Germany in Dortmund. The municipal court made on July 4, 2013 a decision which could not be appealed separately. In its decision the municipal court considered to have jurisdiction and that the claims made by the claimant were at least not totally time-barred. On May 19, 2014 Kemira announced that it had signed an agreement with Cartel Damage Claims Hydrogen Peroxide SA and CDC Holding SA (together "CDC") to settle the lawsuit in Helsinki, Finland. Based on the settlement CDC withdrew the damages claims and Kemira paid to CDC a compensation of EUR 18.5 million and compensated CDC for its legal costs. The settlement also includes significant limitations of liabilities for Kemira regarding the pending legal actions filed by CDC entities in Dortmund, Germany (mentioned above) and in Amsterdam, the Netherlands (mentioned below).

Kemira Oyj's subsidiary Kemira Chemicals Oy (former Finnish Chemicals Oy) has on June 9, 2011 received documents where it was stated that CDC Project 13 SA has filed an action against four companies in municipal court of Amsterdam, including Kemira, asking damages for violations of competition law applicable to the sodium chlorate business. The European Commission set on June 2008 a fine of EUR 10.15 million on Finnish Chemicals Oy for antitrust activity in the company's sodium chlorate business during 1994-2000. Kemira Oyj acquired Finnish Chemicals in 2005. The municipal court of Amsterdam decided on June 4, 2014 to have jurisdiction over the case. The said decision on jurisdiction has been appealed by Kemira. Kemira defends against the claim of CDC Project 13 SA.

As mentioned above the settlement between Kemira and CDC relating the Helsinki litigation also includes significant limitations of liabilities for Kemira regarding the pending legal actions filed by CDC entities in Dortmund, Germany and in Amsterdam, the Netherlands. However, regardless of such limitations of liabilities, Kemira is currently not in a position to make any estimate regarding the duration or the likely outcome of the processes started by Cartel Damage Claims Hydrogen Peroxide SA and CDC Project 13 SA. No assurance can be given as to the outcome of the processes, and unfavorable judgments against Kemira could have a material adverse effect on Kemira's business, financial condition or results of operations. Due to its extensive international operations the Group, in addition to the above referred claims, is involved in a number of other legal proceedings incidental to these operations and it does not expect the outcome of these other currently pending legal proceedings to have materially adverse effect upon its consolidated results or financial position.

RELATED PARTY

Transactions with related parties have not changed materially.

QUARTERLY INFORMATION

	2015	2014	2014	2014	2014
	1-3	10-12	7-9	4-6	1-3
EUR million
Revenue
Paper 1)	314.6	307.0	300.6	282.0	280.4
Oil & Mining	93.9	96.7	95.9	97.6	92.0
Municipal & Industrial	144.5	143.4	145.0	138.6	137.7
ChemSolutions 1)	-	-	-	-	19.8
Total	553.0	547.1	541.5	518.2	529.9
EBITDA
Paper 1)	35.0	37.7	34.0	7.5	30.7
Oil & Mining	11.0	14.4	11.7	11.2	8.9
Municipal & Industrial	19.2	21.1	21.5	16.1	2.6
ChemSolutions 1)	-	-	-	-	35.5
Total	65.2	73.2	67.2	34.8	77.7
Operative EBITDA, excluding non-recurring items
Paper 1)	36.1	36.3	37.0	30.8	33.1
Oil & Mining	11.1	12.2	13.8	11.7	10.7
Municipal & Industrial	19.2	16.8	19.1	17.7	14.5
ChemSolutions 1)	-	-	-	-	-0.8
Total	66.4	65.3	69.9	60.2	57.5
Operating profit (EBIT)
Paper 1)	19.6	22.4	20.9	-5.1	19.4
Oil & Mining	5.7	9.3	7.2	6.7	4.5
Municipal & Industrial	12.5	13.7	14.8	8.4	-5.2
ChemSolutions 1)	-	-	-	-	35.6
Total	37.8	45.4	42.9	10.0	54.3
Operating profit (EBIT), excluding non-recurring items
Paper 1)	20.7	21.9	23.8	18.2	21.9
Oil & Mining	5.8	7.2	9.3	7.1	6.3
Municipal & Industrial	12.6	10.4	12.4	11.7	8.8
ChemSolutions 1)	-	-	-	-	-0.7
Total	39.1	39.5	45.5	37.0	36.3

1) On March 2014, Kemira closed the divestment of formic acid business which had formed the major part of ChemSolutions segment. After the closure, the remaining sodium percarbonate business in ChemSolutions segment was transferred to Paper segment and ChemSolutions segment was discontinued as of the beginning of Q2 2014.

DEFINITIONS OF KEY FIGURES

Earnings per share (EPS) Equity ratio, %

Net profit attributable to equity owners of the parent Total equity x 100 Average number of shares Total assets - prepayments received

Cash flow from operations Gearing, % Cash flow from operations, after change in net working Interest-bearing net liabilities x 100 capital and before investing activities Total equity

Cash flow from operations per share Interest-bearing net liabilities

Average number of shares

Equity per share Return on capital employed (ROCE), % Equity attributable to equity owners of the parent Number of shares at end of period Capital employed 1) 2)

Cash flow from operations Interest-bearing liabilities - cash and cash equivalents

at end of period Operating profit + share of profit or loss of associates x 100

1) Average

2) Capital Employed = property, plant and equipment + intangible assets + net working capital + investments in associates

BASIS OF PREPARATION

This unaudited consolidated interim financial statements has been prepared in accordance with IAS 34 Interim financial reporting . The condensed interim financial statements should be read in conjunction with the annual financial statements 2014, which have been prepared in accordance with IFRSs.

All the figures in this financial statements bulletin have been rounded and consequently the sum of individual figures can deviate from the presented sum figure.

ACCOUNTING POLICIES

The accounting policies adopted are consistent with those of the previous financial year, except as described below.

• Kemira Group has adopted IFRIC 21 Levies . The interpretation provides guidance on when to recognise a liability for a levy imposed by a government. The application of IFRIC 21 has not had any material impact on the amounts reported on the interim financial statements.

• Other amendments to IFRSs have not had any material impact on the amounts reported on the interim financial statements.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.