Kemira Oyj

Quarterly Report • Apr 23, 2014

INTERIM REPORT

January – March 2014

SOLID PERFORMANCE IN CORE BUSINESSES

• Reported revenue decreased 6% to EUR 529.9 million (560.9), due to divestments and unfavorable currency exchange rates. Organic revenue growth reached 2%.
• Operative EBIT decreased 14% to EUR 36.3 million (42.2) with a margin of 6.9% (7.5%), mainly due to the decreased result in ChemSolutions.
• Operative EBIT, excluding the impacts of food and pharmaceuticals business (divested on March 1, 2013) and formic acid business (divested on March 6, 2014), increased 12% to EUR 37.0 million (33.0) with a margin of 7.3% (6.5%). The corresponding operative EBITDA improved to EUR 58.3 million (53.0) with a margin of 11.4% (10.4%).
• The reported earnings per share increased to EUR 0.28 (0.01), mainly due to a capital gain related to the divestment of formic acid business. Comparable period was impacted by a write-down related to the divestment of shares in the Joint Venture Sachtleben.
• Kemira maintains its outlook for 2014.

Kemira's President and CEO Wolfgang Büchele:

"Kemira's reported revenue declined due to the divestments announced in the fourth quarter of 2013 and due to continued unfavorable currency development. As a result of the divestments, Kemira continued to shift towards businesses with a higher growth profile.

The financial performance of our core segments was solid with organic revenue growth of 4% and operative EBIT improvement of 12%. Stable profitable growth continued in Paper and organic growth accelerated in Oil & Mining. Municipal & Industrial reported a fifth consecutive quarter with improved operative EBIT margin (year-on-year comparison).

Group's operative EBIT was impacted by a very weak de-icing season, resulting in a reduced operative EBIT of ChemSolutions' formic acid business. The divestment of formic acid business was completed during the quarter, marking the last major step of our transformation into a company that focuses on water quality and quantity management. Going forward, Kemira's business portfolio will be based on three core segments; Paper, Oil & Mining and Municipal & Industrial.

Kemira is currently the only global chemical company committed to the water intensive pulp and paper industries. During the quarter, we further strengthened our position by announcing the acquisition of BASF's AKD emulsion business. The transaction will support our leading market position in sizing chemicals and enable an improved offering to our Paper customers on the continental European market. In addition, we are investing in the expansion of our sizing and strength chemicals production at our Telêmaco Borba plant in Paraná, Brazil.

As an important milestone of our continuous efficiency measures, we inaugurated in March our Business Service Center in Gdansk, an excellent example of the process optimization and cross-functional collaboration.

Looking ahead, we are confident that we will reach the set organic revenue growth and operative EBIT targets for 2014. This is supported by a streamlined strategic portfolio and a clear focus on growth in Paper and Oil & Mining, as well as on cash optimization in Municipal & Industrial."

KEY FIGURES AND RATIOS

	Jan-Mar	Jan-Mar
EUR million	2014	2013	2013
Revenue	529.9	560.9	2,229.1
Operative EBITDA	57.5	63.5	251.9
Operative EBITDA, %	10.9	11.3	11.3
EBITDA	77.7	61.1	141.9
EBITDA, %	14.7	10.9	6.4
Operative EBIT	36.3	42.2	164.2
Operative EBIT, %	6.9	7.5	7.4
EBIT	54.3	39.2	42.6
EBIT, %	10.2	7.0	1.9
Share of profit or loss of associates	0.0	-1.2	-1.1
Financing income and expenses	-5.3	-24.7	-39.0
Profit before tax	49.0	13.3	2.5
Net profit	43.1	2.8	-25.9
Earnings per share, EUR	0.28	0.01	-0.21
Operative earnings per share, EUR	0.15	0.17	0.70
Capital employed*	1,322.2	1,595.6	1,366.5
Operative ROCE*	12.0	9.9	11.9
ROCE*	4.4	2.2	3.0
Capital expenditure	25.6	29.0	197.5
Cash flow after investing activities	130.3	189.9	195.7
Equity ratio, % at period-end	50	50	51
Gearing, % at period-end	30	30	41
Personnel at period-end	4,267	4,662	4,453

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

Definitions of key figures are available at www.kemira.com > Investors > Financial information. Comparative 2013 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 2014

Kemira Group's revenue decreased 6% to EUR 529.9 million (560.9). Organic revenue growth was 2% driven by the higher sales volumes in Oil & Mining and Paper. Sales price changes had a small negative impact on revenue. Acquisitions had an impact of 3% and divestments an impact of -8% on the revenues. Currency exchange had -3% impact.

In the Paper segment, revenues increased 4% to EUR 268.5 million (259.1). Revenue growth in local currencies, excluding acquisitions and divestments, was 7% driven by the higher sales volumes in all

regions. Sales prices remained close to the level of the comparable period. Currency exchange impacted revenues by -3%. Acquisitions and divestments had only marginal impacts on the revenue.

In the Oil & Mining segment, revenues increased 21% to EUR 92.0 million (76.3). Revenue growth in local currencies, excluding acquisitions and divestments, increased 14% due to the increased sales volumes in NAFTA and SA. Sales prices were slightly lower compared to the first quarter in 2013. Acquisition of 3F impacted revenues by 13%. Currency exchange had a -5% impact.

In the Municipal & Industrial segment, revenues decreased 16% to EUR 137.7 million (164.8). Revenue in local currencies, excluding acquisitions and divestments, decreased 7%, mainly due to the lower sales volumes, especially in NAFTA. Acquisition of 3F impacted revenue by 5% and the divestments of Brazilian coagulant business, distribution business in Denmark and other smaller product lines in Denmark, as well as in Romania, by a total of -12%. Currency exchange impacted revenues by -2%.

In the ChemSolutions segment, revenues decreased 48% to EUR 31.7 million (60.7) due to the impact of the divested formic acid and food and pharmaceuticals businesses (-33%). The first quarter in 2014 included revenue for two months from the divested formic acid business. Revenue in local currencies, excluding divestments decreased 13%, mainly due to a very weak de-icing season. Currency exchange impacted revenues by -2%

	Jan-Mar	Jan-Mar
Revenue, EUR million	2014	2013	∆%
Paper	268.5	259.1	4
Oil & Mining	92.0	76.3	21
Municipal & Industrial	137.7	164.8	-16
ChemSolutions	31.7	60.7	-48
Total	529.9	560.9	-6

EBIT increased to EUR 54.3 million (39.2), mainly due to capital gain of EUR 37 million related to the divestment of formic acid business partly offset by other non-recurring items of EUR -19 million (-3).

Non-recurring items affecting the EBIT were EUR 18 million (-3) and included capital gain of EUR 37 million related to the divestment of formic acid business and capital gain of EUR 4 million related to the divestment of the distribution business in Denmark. Provisions, mainly related to a streamlining of Kemira's operations, amounted to EUR 15 million and the corresponding restructuring charges to EUR 3 million. Write-downs of assets amounted to EUR 6 million.

The operative EBIT decreased to EUR 36.3 million (42.2), mainly due to the very weak de-icing season and divestments of the formic acid and food and pharmaceuticals businesses in ChemSolutions.

Increased sales volumes, driven by Paper and Oil & Mining, had positive impact of EUR 5 million on the operative EBIT. Variable costs were EUR 4 million lower, mainly due to decreased raw material costs. Raw material costs were lower as certain raw material prices declined, mainly in EMEA, with corresponding

impact to sales prices. Fixed costs continued to decrease driven by Fit for Growth restructuring program and other cost savings and had a positive impact of EUR 3 million on the operative EBIT.

Divestments in Municipal & Industrial and ChemSolutions had EUR -7 million impact on operative EBIT. Acquisitions had a positive EUR 2 million impact. Currency exchange had an impact of EUR -4 million and lower other operating income also impacted the operative EBIT (see variance analysis on page 5). The operative EBIT margin reached 6.9% (7.5%).

Variance analysis, EUR million	Jan-Mar
Operative EBIT, 2013	42.2
Sales volumes	4.5
Sales prices	-4.5
Variable costs	4.2
Fixed costs	2.6
Currency exchange	-4.0
Others, incl. acquisitions and divestments	-8.7
Operative EBIT, 2014	36.3

Operative EBIT	Jan-Mar 2014 EUR, million	Jan-Mar 2013 EUR, million	∆%	Jan-Mar 2014 %-margin	Jan-Mar 2013 %-margin
Paper	22.3	19.7	13	8.3	7.6
Oil & Mining	6.3	5.1	24	6.8	6.7
Municipal & Industrial	8.8	8.6	2	6.4	5.2
ChemSolutions	-1.1	8.8	-	-3.5	14.5
Total	36.3	42.2	-14	6.9	7.5

Financing income and expenses totaled EUR -5.3 million (-24.7), negatively impacted by the changes of EUR -0.4 million (2.4) in fair values of electricity derivatives. Currency exchange differences had an impact of EUR 0.2 million (1.4). Comparable period was impacted by write-down of EUR 22.7 million related to the divestment of Kemira's shares (39%) in the titanium dioxide Joint Venture Sachtleben GmbH.

Net profit attributable to the owners of the parent company increased to EUR 41.9 million (1.8) and the earnings per share to EUR 0.28 (0.01), mainly due to a capital gain related to the divestment of formic acid business. Comparable period was impacted by a write-down related to the divestment of shares in the Joint Venture Sachtleben. Operative earnings per share was EUR 0.15 (0.17).

FINANCIAL POSITION AND CASH FLOW

Cash flow from the operating activities in January-March 2014 was EUR 13.1 million. Cash flow after investing activities decreased to EUR 130.3 million (189.9) including proceeds of EUR 131 million related to the divestment of formic acid business. Comparable period included proceeds of EUR 98 million received from the divestment of shares in JV Sachtleben and EUR 81 million from the divestment of the food and

pharmaceuticals businesses. The net working capital ratio decreased to 10.6% of the revenue (10.9% on December 31, 2013).

At the end of the period, Kemira Group's net debt was EUR 326 million (456 on December 31, 2013). Net debt decreased due to the total proceeds of EUR 131 million received from the divestment of Kemira's formic acid business.

At the end of the period, interest-bearing liabilities totaled EUR 484 million (558 on December 31, 2013). Fixed-rate loans accounted for 80% of the net interest-bearing liabilities (60% on December 31, 2013). The average interest rate of the Group's interest-bearing liabilities was 1.6% (1.5% on December 31, 2013). The duration of the Group's interest-bearing loan portfolio was 13 months (14 months on December 31, 2013).

Short-term liabilities maturing in the next 12 months amounted to EUR 203.8 million, the commercial papers of which, issued in the Finnish market, represented EUR 105.9 million and the short term part of the longterm loans represented EUR 46.3 million. On March 31, 2014, cash and cash equivalents totaled EUR 158.4 million.

At the end of the period, the equity ratio was 50% (51% on December 31, 2013), while the gearing was 30% (41% on December 31, 2013). Shareholder's equity decreased to EUR 1,081.9 million (1,125.5 on December 31, 2013), mainly due to the dividend distribution of EUR 81 million.

CAPITAL EXPENDITURE

In January-March 2014, capital expenditure decreased 12% to EUR 25.6 million (29.0). Capex can be broken down as follows: expansion capex 64% (70%), improvement capex 20% (16%), and maintenance capex 16% (14%). Expansion investments were mainly focused on the greenfield sites Nanjing and Tarragona as well as on the capacity expansion of differentiated product lines in North America.

In January-March 2014, the Group's depreciation and impairments increased to EUR 23.4 million (21.9). The increase was mainly related to the acquisition of 3F.

RESEARCH AND DEVELOPMENT

In January-March 2014, the Research and Development expenses totaled EUR 6.8 million (8.5), representing 1.3% (1.5%) of Kemira Group's revenue.

HUMAN RESOURCES

At the end of the period, Kemira Group had 4,169 permanent employees (4,350 on December 2013) and 98 temporary employees (103). Kemira employed 815 people in Finland (961), 1,638 people elsewhere in EMEA (1,634), 1,258 in North America (1,281), 215 in South America (237), and 341 in Asia Pacific (340).

CORPORATE RESPONSIBILITY

The focus areas and targets of the Kemira's corporate responsibility were updated based on Kemira's sharpened strategy presented in April 2013 and on the results of stakeholder survey results in fall 2013. The Management Board approved the targets in January 2014. The results of stakeholder survey indicate a growing importance of the business ethics and compliance, product stewardship, responsibility in the supply chain, as well as a transparency of our operations to our stakeholders. The key achievements during the first quarter in 2014 are shown in the following table.

Responsibility focus areas	KPI's and KPI target values	Status Q1 2014
Responsible business practices
Kemira Compliance program	Kemira Compliance program established by the end of 2014	Compliance program definition proceeding including process for handling non-compliance issues and identification of compliance training portfolio.
Responsible supply chain
Code of Conduct for Suppliers, Distributors and Agents	Supplier contracts with signed CoC-SDA as attachment, 90% by the end of 2015	90% Monitoring and non-compliance flagging report in place allowing corrective actions.
Responsibility for employees
Performance management	Kemira employees covered by the global Performance Management process, > 95% by the end of 2014	100 % of the Kemira's white collar employees covered by the global Performance Management process (90% completion rate in Q1 2014). Global Performance Management process has been extended to cover also blue collars.
Leadership development	People managers participated in global leadership programs at least once during the period 2013–2015, cumulative %, >95% by the end of 2015	Leadership Development Program portfolio has been renewed. Design of new innovation leadership programs has started.
	Employee Engagement Index, Index % ≥ external industry norm by the end of 2015	A smaller scale employee survey
Employee engagement	Participation rate in Voices@Kemira (employee satisfaction survey), 75–85% by the end of 2015	"Pulse" was conducted in March 2014 with a participation rate of 51%.
Occupational health and safety	Number of Total Recordable Injuries (TRI) (per million hours, Kemira + contractor, 1 year rolling average), Target: zero injuries	TRI 7.1

Sustainable products and solutions
Sustainability aspects in New Product Development (NPD) process	New NPD projects apply the sustainability check in Gate 1, 100% by the end of 2014 Existing NPD projects apply the sustainability check in Gates 2–4, 100% by the end of 2014	100% Sustainability criteria have been more accurately specified to increase the quality of the sustainability checks.
Responsibility towards the communities where we operate
Participation in local community involvement activities	Kemira sites with over 50 employees participated in local community involvement initiatives at least once in period 2013–2015, 100% in cumulative by the end of 2015	76%

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	2014	2013	2013
Revenue	268.5	259.1	1,067.6
Operative EBITDA	33.3	30.6	130.3
Operative EBITDA, %	12.4	11.8	12.2
EBITDA	30.9	29.3	97.7
EBITDA, %	11.5	11.3	9.1
Operative EBIT	22.3	19.7	86.5
Operative EBIT, %	8.3	7.6	8.1
EBIT	19.9	17.8	45.7
EBIT, %	7.4	6.9	4.3
Capital employed*	751.3	774.4	758.0
ROCE*	6.4	5.7	6.0
Capital expenditure	12.3	18.2	75.2
Cash flow after investing activities	2.6	29.9	55.9

*12-month rolling average

The Paper segment's revenue increased 4% to EUR 268.5 million (259.1) as the currency exchange impact of -3% was more than compensated by a continued solid growth of sales volumes in all regions, as well as in all the main differentiated and commodity product lines. Sales prices remained close to the level of the first

quarter in 2013 and did not have material impact on revenue.

In EMEA, revenue increased by 3%, mainly driven by the higher sales volumes of polymer, sizing and bleaching products. In NAFTA, revenue growth accelerated and was more than 10% in local currencies. Increased sales volumes of wet-end process chemicals and favorable pricing were the main reasons behind the revenue growth. In SA, revenue increased nearly 10% in local currencies, excluding the small negative impact of the coagulant business divestment in Brazil. Revenue growth accelerated also in APAC and was close to 10% in local currencies due to the recovery of sales volumes in all the main product lines.

The operative EBIT increased 13% to EUR 22.3 million (19.7) mainly due to the continued growth of sales volumes. Variable costs remained largely unchanged, as especially electricity price driven higher raw material costs in NAFTA were offset by lower raw material costs in EMEA. Fixed costs were also kept close to a level of Q1 2013, despite increased sales and marketing efforts. Currency exchange had EUR 2 million negative impact on the operative EBIT. The operative EBIT margin improved to 8.3% (7.6%).

In February, Kemira announced that it will acquire BASF's global alkyl ketene dimer (AKD) emulsion business. The transaction is expected to close in the second quarter of 2014. Kemira is a global leader in paper and pulp chemistry and the leading supplier of sizing products for the paper industry. The acquisition of the AKD emulsion business is one part in implementing Kemira's strategy and strengthens its position on the continental European paper wet-end chemicals market.

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	2014	2013	2013
Revenue	92.0	76.3	311.5
Operative EBITDA	10.7	8.7	32.7
Operative EBITDA, %	11.6	11.4	10.5
EBITDA	8.9	8.0	24.6
EBITDA, %	9.7	10.5	7.9
Operative EBIT	6.3	5.1	17.4
Operative EBIT, %	6.8	6.7	5.6
EBIT	4.5	4.3	6.5
EBIT, %	4.9	5.6	2.1
Capital employed*	200.2	174.4	188.2
ROCE*	3.3	5.9	3.5
Capital expenditure	4.4	2.8	69.8
Cash flow after investing activities	11.9	-2.0	-60.6

*12-month rolling average

The Oil & Mining segment's revenue increased 21% to EUR 92.0 million (76.3), supported by the accelerated growth in sales volumes in NAFTA region, as well as 13% positive impact of the acquisition of 3F. Sales price changes had a small negative impact on revenues. Currency exchange had a -5% impact.

In NAFTA, revenue grew over 30% in local currencies, driven by the increased dry and emulsion polyacrylamide sales volumes and the acquisition of 3F. Demand for polymers and other process chemicals recovered, as the higher oil and gas prices drove increased drilling and stimulation activity in NAFTA. At the same time, Kemira's offering to serve the oil and gas industry has improved, especially through new innovative products. Kemira's new products such as friction reducers and tagged antiscalants are used in the drilling, cementing and stimulation of conventional and unconventional oil and gas wells. In EMEA, the revenue decline slowed down somewhat compared to the previous quarter and was 7%. Market softness continued, especially in relation to process chemicals used in the mining industry.

The operative EBIT increased 24% to EUR 6.3 million (5.1), mainly due to the higher sales volumes and the acquisition of 3F. Fixed costs increased EUR 2 million, mainly as a result of the higher manufacturing expenses and together with sales price changes as well as the currency exchange had negative impacts on the operative EBIT. Variable costs remained close to a level of the first quarter in 2013, as the propylenedriven raw material prices stabilized. The operative EBIT margin was 6.8% (6.7%).

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	2014	2013	2013
Revenue	137.7	164.8	659.4
Operative EBITDA	14.5	13.9	68.3
Operative EBITDA, %	10.5	8.4	10.4
EBITDA	2.6	13.0	-0.5
EBITDA, %	1.9	7.9	-0.1
Operative EBIT	8.8	8.6	45.8
Operative EBIT, %	6.4	5.2	6.9
EBIT	-5.2	7.8	-23.4
EBIT, %	-3.8	4.7	-3.6
Capital employed*	292.2	358.7	309.2
ROCE*	-12.5	-3.6	-7.6
Capital expenditure	8.3	7.6	46.9
Cash flow after investing activities	-3.2	0.0	36.7

*12-month rolling average

The Municipal & Industrial segment's revenue decreased 16% to EUR 137.7 million (164.8) due to an impact of -12% from the divestments, lower sales volumes, and an impact of unfavorable currency exchange of -2%. Acquisition of 3F had a 5% positive impact on revenue. Sales price changes had a negligible impact.

The revenue in local currencies, excluding acquisitions and divestments in EMEA recovered slightly and was close to the level in the first quarter in 2013, as the improvements in the product mix were partly able to compensate for the impact of lower sales volumes. In addition, 3F acquisition strengthened Kemira's position in the EMEA polymer and process chemical markets and could largely offset the impacts of the divestments accomplished in Denmark and Romania.

In NAFTA, the revenue decline continued due to the lower sales volumes and unfavorable currency exchanges. Weather conditions in certain areas in NAFTA were exceptionally dry and lowered the demand for iron and aluminum coagulants used for raw water, wastewater, and sludge treatment. However, towards the end of the quarter, demand for iron coagulants started to recover slightly. The coagulant business in Brazil was divested in the fourth quarter of 2013. The exit of the coagulant business in Brazil is in line with the Municipal & Industrial strategic focus on profitability improvement and cash flow maximization.

The operative EBIT increased 2% to EUR 8.8 million (8.6), mainly due to the lower fixed and variable costs, which more than compensated for the lower sales volumes. Fixed costs decreased EUR 5 million due to Fit for Growth cost savings and other efficiency improvements, especially in the EMEA region. Variable costs decreased EUR 2 million, partly due to the synergies of 3F acquisition and somewhat lower raw material costs. The operative EBIT margin improved for the fifth consecutive quarter to 6.4% (5.2%).

CHEMSOLUTIONS

ChemSolutions reliably provides customers with formic acid and high-performing derivatives as well as environmentally sound bleaching agents. Our economy of scale, based on our world-class operations in EMEA in combination with our people's dedication to quality and efficiency, enable us to continuously improve our competitiveness.

	Jan-Mar	Jan-Mar
EUR million	2014	2013	2013
Revenue	31.7	60.7	190.6
Operative EBITDA	-0.9	10.4	20.7
Operative EBITDA, %	-2.8	17.1	10.9
EBITDA	35.4	10.9	20.0
EBITDA, %	111.7	18.0	10.5
Operative EBIT	-1.1	8.8	14.5
Operative EBIT, %	-3.5	14.5	7.6
EBIT	35.1	9.3	13.8
EBIT, %	110.7	15.3	7.2
Capital employed*	74.1	167.4	99.1
ROCE*	53.6	-3.5	13.9
Capital expenditure	0.6	0.4	5.5
Cash flow after investing activities	125.1	81.1	82.3

*12-month rolling average

The ChemSolutions segment's revenue decreased 48% to EUR 31.7 million (60.7), mainly due to the divestment of the formic acid and food and pharmaceuticals businesses. The first quarter in 2014 included revenue from the divested formic acid business for two months. Revenue in local currencies, excluding divestments, decreased 13% as due to mild weather in Europe, sales volumes of de-icing products to airports were significantly less than in the comparable period in 2013. In the comparable period in 2013, deicing season was exceptionally good. Currency exchange had a -2% impact.

The operative EBIT was EUR -1.1 million (8.8), mainly due to the divestments of the formic acid and food and pharmaceuticals businesses and very weak de-icing season. The operative EBIT margin was -3.5% (14.5%).

The divestment of the ChemSolutions' formic acid business was completed on March 6, 2014. Sodium percarbonate, the remaining business within the ChemSolutions segment, will stay within Kemira and will be reported as a part of the Paper segment as of the second quarter in 2014 and at the same time, the ChemSolutions segment will be discontinued.

KEMIRA OYJ'S SHARES AND SHAREHOLDERS

On March 31, 2014, 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 32,151 registered shareholders (30,640 at the end of December 2013). Foreign shareholders held 21.3% of the shares (21.6% at the end of December 2013), including nominee registered holdings. Households owned 15.7% of the shares (14.9% at the end of December 2013). Kemira held 3,301,006 treasury shares (3,301,006 at the end of December, 2013) representing 2.1% (2.1% at the end of December 2013) of all company shares.

Kemira Oyj's share closed at EUR 10.58 on the NASDAQ OMX Helsinki at the end of March 2014 (12.16 at the end of December 2013). Shares registered a high of EUR 12.27 and a low of EUR 10.19 in January-March 2014. The average share price was EUR 11.14. The company's market capitalization, excluding treasury shares, was EUR 1,609 million at the end of March 2014 (1,849 at the end of December 2013). In January-March 2014, Kemira Oyj's share trading volume on NASDAQ OMX Helsinki increased 63% to 26.7 million (16.7). The average daily trading volume was 430,404 (269,000) shares. Source: NASDAQ OMX.

In addition to NASDAQ OMX Helsinki, Kemira shares are traded on several alternative market places or multilateral trading facilities (MTF), for example at Chi-X, BATS and Turquoise. In January-March 2014, a total of 9.5 million (7.3) Kemira Oyj's shares were traded on the alternative market places or 26% (32%) of the total amount of traded shares. Source: Fidessa.

The total amount of traded Kemira shares, including the trade on NASDAQ OMX Helsinki and multilateral trading facilities increased by 51% in January-March 2014 compared to January-March 2013.

AGM DECISIONS

Annual General Meeting

Kemira Oyj's Annual General Meeting, held on March 24, 2014, confirmed dividend of EUR 0.53. The dividend was paid out on April 3, 2014. The Annual General Meeting elected six members (previously five) to the Board of Directors. Annual General Meeting reelected Winnie Fok, Juha Laaksonen, Jari Paasikivi and Kerttu Tuomas and elected Wolfgang Büchele and Timo Lappalainen as new members. Jari Paasikivi was elected as the Board's Chairman and Kerttu Tuomas was elected as the Vice Chairman.

The AGM 2014 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 sharebased 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, 2015.

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

Changes to company management

On January 7, 2014, Kemira announced the appointment of Jari Rosendal as Kemira Oyj's President and Chief Executive Officer as of May 1, 2014.

On January 30, 2014, Kemira announced that Randy Owens, President of the Oil & Mining segment and region North America will leave Kemira as of April 30, 2014. In addition, Kemira announced that Hilton Casas, President of the region South America will leave Kemira as of March 31, 2014.

On April 23, 2014, Kemira announced the appointment of Tarjei Johansen as President of the Oil & Mining segment and the region the Americas as of May 5, 2014.

Hannu Virolainen, President of the ChemSolutions segment and EHSQ will leave Kemira as of September 30, 2014.

BOARD COMMITEES

In March 2014, 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.

SHORT-TERM RISKS AND UNCERTAINTIES

There have been no significant changes in the Kemira's short-term risks or uncertainties compared to December 31, 2013.

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 2013. Environmental, hazard, supplier and talent management risks are discussed in Kemira's the corporate responsibility report that was published as part of the Kemira Annual Report 2013 on February 26, 2014.

KEMIRA'S FINANCIAL TARGETS FOR 2016 AND OUTLOOK 2014 (UNCHANGED)

Kemira will continue to focus on improving its profitability and reinforcing positive cash flow. The company will also continue to invest in order to secure future growth in the water quality and quantity management business.

The company's financial targets for 2016 are:

• revenue EUR 2.6-2.7 billion
• EBITDA-% of revenue 15%
• gearing level < 60%.

In addition, Kemira expects its medium-term operating tax rate to be in the range of 22%-24%. The operating tax rate excludes non-recurring items and the impact of the income from associated companies.

The basis for growth is the expanding market for chemicals related to water quality and quantity management and Kemira's strong expertise in this field. 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 organic growth enabler for Kemira and it provides differentiation capabilities in the water quality and quantity management markets. Kemira will invest in innovation, technical expertise, and competencies in the targeted focus areas.

Outlook

In 2014, Kemira expects its revenue in local currencies and excluding acquisitions and divestments to be slightly higher than in 2013 and its operative EBIT to be higher than in 2013.

The guidance for 2014 is defined as follows.

Kemira guidance	Definition
Slightly higher/lower	from 0% to 5% or from 0% to -5%
Higher/lower	from 5% to 15% or from -5% to -15%
Significantly higher/lower	more than 15% or less than -15%

Helsinki, April 23, 2014

Kemira Oyj Board of Directors

FINANCIAL CALENDAR 2014

Interim report January-June 2014 July 22, 2014 Interim report January-September 2014 October 22, 2014

Kemira Capital Markets Day will be held in London on September 9, 2014.

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

	1-3/2014	1-3/2013	2013
EUR million
Revenue	529.9	560.9	2,229.1
Other operating income	43.5	4.0	15.2
Operating expenses	-495.7	-503.8	-2,102.4
Depreciation, amortization and impairment	-23.4	-21.9	-99.3
Operating profit (EBIT)	54.3	39.2	42.6
Finance costs, net	-5.3	-24.7	-39.0
Share of profit or loss of associates	0.0	-1.2	-1.1
Profit before tax	49.0	13.3	2.5
Income tax expense	-5.9	-10.5	-28.4
Net profit for the period	43.1	2.8	-25.9
Net profit attributable to:
Equity owners of the parent	41.9	1.8	-31.6
Non-controlling interests	1.2	1.0	5.7
Net profit for the period	43.1	2.8	-25.9
Earnings per share, basic and diluted, EUR	0.28	0.01	-0.21

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	1-3/2014	1-3/2013	2013
EUR million
Net profit for the period	43.1	2.8	-25.9
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Available-for-sale financial assets	0.0	0.0	-27.0
Exchange differences on translating foreign operations	-4.4	8.9	-17.7
Cash flow hedges	-1.8	-1.1	-2.3
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit pensions	0.0	2.9	22.6
Other comprehensive income for the period, net of tax	-6.2	10.7	-24.4
Total comprehensive income for the period	36.9	13.5	-50.3
Total comprehensive income attributable to:
Equity owners of the parent	35.7	12.7	-55.4
Non-controlling interests	1.2	0.8	5.1
Total comprehensive income for the period	36.9	13.5	-50.3

CONSOLIDATED BALANCE SHEET

	31/03/2014	31/12/2013
EUR million
ASSETS
Non-current assets
Goodwill	471.7	471.9
Other intangible assets	73.1	75.3
Property, plant and equipment	644.2	644.5
Investments in associates	0.8	0.8
Available-for-sale financial assets	233.7	233.6
Deferred tax assets	31.7	36.0
Other investments	9.0	9.2
Defined benefit pension receivables	29.7	29.8
Total non-current assets	1,493.9	1,501.1
Current assets
Inventories	175.8	169.9
Interest-bearing receivables	0.2	0.5
Trade and other receivables	324.6	320.9
Current income tax assets	14.4	11.2
Cash and cash equivalents	158.4	102.0
Total current assets	673.4	604.5
Non-current assets classified as held-for-sale	-	105.4
Total assets	2,167.3	2,211.0
EQUITY AND LIABILITIES
Equity
Equity attributable to equity owners of the parent	1,067.7	1,112.5
Non-controlling interests	14.2	13.0
Total equity	1,081.9	1,125.5
Non-current liabilities
Interest-bearing liabilities	280.1	279.9
Other liabilities	21.4	21.4
Deferred tax liabilities	42.3	43.5
Defined benefit pension liabilities	74.2	73.8
Provisions	25.1	27.3
Total non-current liabilities	443.1	445.9
Current liabilities
Interest-bearing current liabilities	203.8	278.4
Trade payables and other liabilities	397.3	302.6
Current income tax liabilities	11.1	13.6
Provisions	30.1	25.2
Total current liabilities	642.3	619.8
Liabilities directly associated with the assets classified as held-for-sale	-	19.8
Total liabilities	1,085.4	1,085.5
Total equity and liabilities	2,167.3	2,211.0

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

	1-3/2014	1-3/2013	2013
EUR million
Cash flow from operating activities
Net profit for the period	43.1	2.8	-25.9
Total adjustments	0.5	54.5	228.1
Operating profit before change in net working capital	43.6	57.3	202.2
Change in net working capital	-21.2	-4.3	24.8
Cash generated from operations	22.4	53.0	227.0
Finance expenses, net and dividends received	-2.6	-5.7	-0.2
Income taxes paid	-6.7	-7.0	-26.5
Net cash generated from operating activities	13.1	40.3	200.3
Cash flow from investing activities
Purchases of subsidiaries, net of cash acquired	-	-	-58.6
Other capital expenditure	-25.6	-29.0	-138.9
Proceeds from sale of assets	142.6	178.6	193.4
Change in long-term loan receivables decrease (+) / increase (-)	0.2	0.0	-0.5
Net cash used in investing activities	117.2	149.6	-4.6
Cash flow from financing activities
Proceeds from non-current interest-bearing liabilities (+)	-	0.1	0.0
Repayments from non-current interest-bearing liabilities (-)	-12.1	-0.5	-95.1
Short-term financing, net increase (+) / decrease (-)	-61.6	-96.9	-32.6
Dividends paid	0.0	0.0	-85.1
Other finance items	0.1	0.5	-1.1
Net cash used in financing activities	-73.6	-96.8	-213.9
Net decrease (-) / increase (+) in cash and cash equivalents	56.7	93.1	-18.2
Cash and cash equivalents at end of period	158.4	218.2	102.0
Exchange gains (+) / losses (-) on cash and cash equivalents	-0.3	-1.5	-3.4
Cash and cash equivalents at beginning of period	102.0	123.6	123.6
Net decrease (-) / increase (+) in cash and cash equivalents	56.7	93.1	-18.2

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, 2013	221.8	257.9	93.7	196.3	-23.1	-22.2	523.0	1,247.4	13.2	1,260.6
Net profit for the period	-	-	-	-	-	-	1.8	1.8	1.0	2.8
Other comprehensive income, net of tax	-	-	-1.1	-	9.1	-	2.9	10.9	-0.2	10.7
Total comprehensive income	-	-	-1.1	-	9.1	-	4.7	12.7	0.8	13.5
Transactions with owners
Dividends paid	-	-	-	-	-	-	* ) -80.6	-80.6	-	-80.6
Returned treasury shares	-	-	-	-	-	-0.1	-	-0.1	-	-0.1
Share-based payments	-	-	-	-	-	-	0.3	0.3	-	0.3
Transactions with owners	-	-	-	-	-	-0.1	-80.3	-80.4	-	-80.4
Equity at March 31, 2013	221.8	257.9	92.6	196.3	-14.0	-22.3	447.4	1,179.7	14.0	1,193.7

*) A dividend was EUR 80.6 million in total (EUR 0.53 per share) in respect of the financial year ended December 31, 2012. The annual general meeting approved EUR 0.53 dividend on March 26, 2013. The dividend record date was April 2, 2013, and the payment date April 9, 2013.

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.

Kemira had in its possession 3,301,006 of its treasury shares on March 31, 2014. 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

	1-3/2014	1-3/2013	2013
Earnings per share, basic and diluted, EUR *)	0.28	0.01	-0.21
Cash flow from operations per share, EUR *)	0.09	0.27	1.32
Capital expenditure, EUR million	25.6	29.0	197.5
Capital expenditure / revenue, %	4.8	5.2	8.9
Average number of shares, basic (1,000) *)	152,042	152,033	152,039
Average number of shares, diluted (1,000) *)	152,193	152,139	152,179
Number of shares at end of period, basic (1,000) *)	152,042	152,033	152,042
Number of shares at end of period, diluted (1,000) *)	152,179	152,198	152,091
Equity per share, EUR *)	7.02	7.76	7.32
Equity ratio, %	50.0	50.1	50.9
Gearing, %	30.1	29.9	40.6
Interest-bearing net liabilities, EUR million	325.5	357.0	456.3
Personnel (average)	4,363	4,759	4,632

*) Number of shares outstanding, excluding the treasury shares.

REVENUE BY BUSINESS AREA

	1-3/2014	1-3/2013	2013
EUR million
Paper	268.5	259.1	1,067.6
Oil & Mining	92.0	76.3	311.5
Municipal & Industrial	137.7	164.8	659.4
ChemSolutions	31.7	60.7	190.6
Total	529.9	560.9	2,229.1

OPERATING PROFIT (EBIT) BY BUSINESS AREA

	1-3/2014	1-3/2013	2013
EUR million
Paper	19.9	17.8	45.7
Oil & Mining	4.5	4.3	6.5
Municipal & Industrial	-5.2	7.8	-23.4
ChemSolutions	35.1	9.3	13.8
Total	54.3	39.2	42.6

CHANGES IN PROPERTY, PLANT AND EQUIPMENT

	1-3/2014	1-3/2013	2013
EUR million
Carrying amount at beginning of year	644.5	655.9	655.9
Acquisitions of subsidiaries	-	-	30.4
Increases	24.0	18.2	116.3
Decreases	-1.6	-0.2	-1.8
Disposal of subsidiaries	-	-	-17.9
Depreciation and impairments	-19.6	-18.8	-86.0
Transferred to non-current assets classified as held-of-sale	-	-	-33.9
Exchange rate differences and other changes	-3.1	10.3	-18.5
Net carrying amount at end of period	644.2	665.4	644.5

CHANGES IN INTANGIBLE ASSETS

	1-3/2014	1-3/2013	2013
EUR million
Carrying amount at beginning of year	547.2	583.0	583.0
Acquisitions of subsidiaries	-	-	53.3
Increases	1.7	2.2	9.9
Decreases	0.0	-0.1	0.0
Disposal of subsidiaries	-	-	-41.1
Depreciation and impairments	-3.8	-3.1	-13.3
Transferred to non-current assets classified as held-of-sale	-	-	-36.6
Exchange rate differences and other changes	-0.3	5.8	-8.0
Net carrying amount at end of period	544.8	587.8	547.2

DERIVATIVE INSTRUMENTS

	3/31/2014		12/31/2013
EUR million
	Nominal value	Fair value	Nominal value	Fair value
Currency instruments
Forward contracts	516.1	-2.4	604.8	0.7
Interest rate instruments
Interest rate swaps	183.7	-3.0	194.6	-3.6
of which cash flow hedge	183.7	-3.0	194.6	-3.6
Bond futures	10.0	0.0	10.0	0.2
of which open	10.0	0.0	10.0	0.2
Other instruments	GWh	Fair value	GWh	Fair value
Electricity forward contracts, bought	1,529.3	-11.5	1,450.5	-7.8
of which cash flow hedge	1,529.3	-11.5	1,450.5	-7.8

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

	3/31/2014				12/31/2013
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	6.7	-	227.0	233.7	6.6	-	227.0	233.6
Currency instruments	-	1.5	-	1.5	-	4.0	-	4.0
Interest rate instruments, hedge accounting	-	-	-	0.0	-	-	-	0.0
Other instruments	-	0.0	-	0.0	-	0.2	-	0.2
Trade receivables	-	267.7	-	267.7	-	255.4	-	255.4
Total	6.7	269.2	227.0	502.9	6.6	259.6	227.0	493.2

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 3/31/2014	Total net 12/31/2013
Instrument
Carrying amount at beginning of period	227.0	264.0
Effect on the statement of comprehensive income	-	-41.1
Transfers	-	0.0
Increases	-	4.1
Decreases	-	0.0
Carrying amount at end of period	227.0	227.0

FAIR VALUE OF FINANCIAL LIABILITIES

	3/31/2014				12/31/2013
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	-	284.6	-	284.6	-	284.1	-	284.1
Repayments from non-current interest-bearing liabilities	-	47.0	-	47.0	-	59.2	-	59.2
Loans from financial institutions	-	52.4	-	52.4	-	57.2	-	57.2
Other liabilities	-	127.3	-	127.3	-	185.2	-	185.2
Currency instruments	-	3.9	-	3.9	-	3.3	-	3.3
Interest rate instruments	-	3.0	-	3.0	-	3.6	-	3.6
Other instruments	-	11.5	-	11.5	-	7.8	-	7.8
Trade payables	-	146.5	-	146.5	-	143.3	-	143.3
Total	-	676.2	-	676.2	-	743.7	-	743.7

CONTINGENT LIABILITIES

	3/31/2014	12/31/2013
EUR million
Assets pledged
On behalf of own commitments	6.3	6.4
Guarantees
On behalf of own commitments	52.7	50.4
On behalf of others	3.1	3.1
Operating leasing liabilities
Maturity within one year	22.1	26.4
Maturity after one year	136.9	139.9
Other obligations
On behalf of own commitments	1.7	1.6
On behalf of associates	0.7	0.7

Major off-balance sheet investment commitments

Major amounts of contractual commitments for the acquisition of property, plant and equipment on March 31, 2014 were about EUR 7.6 million for plant investments in China and Europe.

Litigation

On August 19, 2009, Kemira Oyj received a summons stating that Cartel Damage Claims Hydrogen Peroxide SA (CDC) 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.

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.

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 ask a preliminary ruling on jurisdiction from the Court of Justice of the European Union. Kemira defends against the claim of Cartel Damage Claims Hydrogen Peroxide SA.

Kemira Oyj has additionally been served on April 28, 2011 a summons stating that Cartel Damage Claims Hydrogen Peroxide SA has 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 has on July 4, 2013 made a decision which can not be appealed separately. In its decision the municipal court considers to have jurisdiction and that the claims made by the claimant are at least not totally time-barred. The next phase of the case is the consideration of the principal claim at the municipal court. Kemira defends against the claim of Cartel Damage Claims Hydrogen Peroxide SA.

Kemira Oyj's subsidiary Kemira Chemicals Oy (former Finnish Chemicals Oy) has on June 9, 2011 received documents where it is stated that CDC Project 13 SA was 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. Next the municipal court of Amsterdam will decide in respect to its jurisdiction. Kemira defends against the claim of CDC Project 13 SA.

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

2014	2013	2013	2013	2013
1-3	10-12	7-9	4-6	1-3
268.5	272.5	271.0	265.0	259.1
92.0	78.5	76.8	79.9	76.3
137.7	152.4	164.2	178.0	164.8
31.7	41.8	41.7	46.4	60.7
529.9	545.2	553.7	569.3	560.9
19.9	9.7	18.5	-0.3	17.8
4.5	-3.9	4.3	1.8	4.3
-5.2	-47.3	4.6	11.5	7.8
35.1	2.6	1.6	0.3	9.3
54.3	-38.9	29.0	13.3	39.2
22.3	23.7	23.6	19.5	19.7
6.3	2.1	6.7	3.5	5.1
8.8	6.9	14.4	15.9	8.6
-1.1	1.8	2.8	1.1	8.8
36.3	34.5	47.5	40.0	42.2

DEFINITIONS OF KEY FIGURES

Earnings per share (EPS) Equity ratio, %

Net profit attributable to equity owners of the parent Total equity x 100

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 attributable to equity owners of the parent Number of shares at end of period Capital employed 1) 2)

Average number of shares Total assets - prepayments received

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

Equity per share Return on capital employed (ROCE), %

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

1) Average

2) Capital Employed = Net working capital + property, plant and equipment available for use + intangible assets + investments in associates

BASIS OF PREPARATION

This unaudited condensed consolidated interim financial statements has been prepared in accordance with IAS 34 'Interim financial reporting'. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRS.

All the figures in this interim financial statements 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.

• Taxes on income in the interim periods are accrued using the tax rate that would be applicable total annual earnings.

• IFRS 10 Consolidated Financial Statements. The standard establishes control as the base for consolidation. Additionally, the standard provides further guidance on how to apply principles of control when it is challenging to assess. The new standard had no impact on the Group's financial figures.

• IFRS 11 Joint Arrangements. The standard emphases the rights and obligations of the joint arrangement rather than its legal form in the accounting. The arrangements are divided into two: joint operations and joint ventures. The standard requires joint ventures to be accounted for using equity method of accounting. Proportional consolidation of joint ventures is no longer allowed. The new standard had no impact on the Group's financial figures.

• IFRS 12 Disclosure of Interests in Other Entities. The standard includes disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other, off balance sheet vehicles. The new standard had no impact on the Group's financial figures.

• IAS 27 (revised 2011) Separate Financial Statements. The revised standard includes the requirements for separate financial statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The revised standard had no impact on the Group's financial figures.

• IAS 28 (revised 2011) Investments in Associates and Joint Ventures. The revised standard includes requirements for both joint operations and associates to be accounted by using equity method of accounting after IFRS 11 was issued. The revised standard had no impact on the Group's financial figures.

• Amendment to IAS 32 Financial instruments: Presentation. The amendment clarifies the conditions for net presentation of financial assets and liabilities and introduces some additional application guidance. The amendment had no impact on the Group's financial figures.

• Amendment to IAS 36 Impairment of assets: Recoverable Amount Disclosures for Non-Financial Assets. The overall effect of the amendments is to clarify the disclosure requirements on those cash generating units which have been subject to impairment. The amendment had no impact on the Group's financial figures.

• Amendments to IAS 39: Novation of Derivatives and Continuation of Hedge Accounting. The amendments allow the continuation of hedge accounting under IAS 39 when a derivative is novated to a clearing counterparty and certain conditions are met. The amendments had no impact on the Group's financial figures.

• Amendment to IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities. The amendment provides additional transition relief by limiting the requirement to provide adjusted comparative information to only the preceding comparative period. The amendment had no impact on the Group's financial figures.

• Amendment to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements. The amendment provides 'investment entities' (as defined) an exemption from the consolidation of particular subsidiaries and instead require that an investment entity measure the investment in each eligible subsidiary at fair value through profit or loss in accordance with IFRS 9 or IAS 39. The amendment had no impact on the Group's financial figures.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of 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.