Kemira Oyj - Interim report (Q1 and Q3)

Kemira Oyj's interim report January-March 2011: Operative EBIT improved notably

Kemira Oyj
Stock exchange release
May 3, 2011 at 8.30 am (CET+1)

Disclosure procedure

Kemira Oyj follows the disclosure procedure enabled by Standard 5.2b published
by the Finnish Financial Supervision Authority and hereby publishes its interim
report January-March 2011 enclosed to this stock exchange release. Kemira's
interim report January-March 2011 is attached to this release in pdf format and
is also available on the company's web site atwww.kemira.com.

Kemira Oyj's interim report January-March 2011: Operative EBIT improved notably



  * Revenue increased 8% to EUR 556.8 million (514.7).
  * Operative EBIT increased 15% to EUR 44.9 million (39.1) and the margin
    increased to 8.1% (7.6%).
  * Profit before tax increased 53% to EUR 48.6 million (31.7).
  * Earnings per share increased 33% to EUR 0.24 (0.18).
  * Tikkurila shares were sold on March 31, 2011; proceeds of EUR 97 million
    were received on April 5, 2011.
  * Outlook for 2011 remains unchanged from the 2010 year-end report.

Kemira's President and CEO Harri Kerminen:"2011 started well for Kemira, despite increased pressure from rising raw
material prices. Healthy volume demand and sales price increases drove revenue
growth and together with continuous efficiency improvements increased Kemira's
operative EBIT to a record level in the first quarter. It is really encouraging
that our revenue is growing above the industry rates and at the same time we
have been able to increase profitability. We are making good progress on
implementing the water chemistry strategy and have achieved an 8.1% EBIT margin
versus our mid-term target of 10%.

Paper segment reported good revenue growth and continued to improve
profitability, reaching 9.0% EBIT margin. Municipal & Industrial segment
increased its sales and EBIT margins are stabilizing over the last two quarters
and maintained it's EBIT margins at 7.4%. Oil & Mining segment grew revenues
26% and the EBIT margin reached 11.2%. Other segment reported a positive EBIT,
which includes another solid quarter in Specialty Chemicals (ChemSolutions).


Kemira opened a new research and development center in São Paulo, Brazil in
collaboration with VTT Technical Research Centre of Finland. The new R&D center
will broaden our business capability in the entire South America region, where
we have operations in Brazil, Argentina, Colombia, Chile, and Uruguay. In the
global Kemira R&D network, the São Paulo center has the leading role in research
programs on biomass utilization, bio-refineries and bioethanol.


Kemira sold its remaining Tikkurila shares, corresponding to 14% of all the
Tikkurila shares. Kemira owns a minority stake (39%) in Sachtleben, a major
titanium dioxide producer. Sachtleben has performed very well since the
beginning of the year and the whole TiO2 industry has benefited from a favorable
demand and pricing."

Key figures and ratios
The figures in the tables in the text section for 2010 of the report are for
continuing operations excluding Tikkurila, unless otherwise mentioned. Tikkurila
Oyj was separated from Kemira on March 26, 2010.

EUR million                           Jan-Mar 2011 Jan-Mar 2010 Jan-Dec 2010

Revenue                                      556.8        514.7      2,160.9

EBITDA                                        68.4         62.8        265.7

EBITDA, %                                     12.3         12.2         12.3
----------------------------------------------------------------------------
Operative EBIT                                44.9         39.1        162.3

EBIT                                          44.9         38.4        156.1
----------------------------------------------------------------------------
Operative EBIT, %                              8.1          7.6          7.5

EBIT, %                                        8.1          7.5          7.2
----------------------------------------------------------------------------
Financial income and expenses                 -3.8         -7.9        -27.4
----------------------------------------------------------------------------
Profit before tax                             48.6         31.7        137.9
----------------------------------------------------------------------------
Net profit from continuing operations         37.9         27.7        115.9
----------------------------------------------------------------------------
Net profit                                    37.9     558.7***     646.9***
----------------------------------------------------------------------------
EPS, EUR, from continuing operations          0.24         0.18         0.73
----------------------------------------------------------------------------
Capital employed*                          1,677.2      1,633.2      1,665.1

ROCE, %*                                      10.6          7.6          9.9
----------------------------------------------------------------------------
Cash flow after investments                   20.7      132.7**      168.6**
----------------------------------------------------------------------------
Capital expenditure                           14.4         16.1        107.8
----------------------------------------------------------------------------
Equity ratio, % at period-end                   53         50**         54**
----------------------------------------------------------------------------
Gearing, % at period-end                        42         42**         39**
----------------------------------------------------------------------------
Personnel at period-end                      4,952        5,027        4,935



* 12-month rolling average

**Includes Tikkurila until March 25, 2010

***Net profit January-December 2010 includes a non-recurring income of EUR
529.2 million from the separation of Tikkurila, consisting of the difference
between the market price of Tikkurila on March 26, 2010 and the shareholder's
equity of Tikkurila on March 25, 2010 less the transfer tax related to
Tikkurila's listing as well as listing costs.

Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Comparative Q1 2010 figures are provided in parentheses
for some financial results, where appropriate. Operating profit, excluding non-
recurring items, is referred to as Operative EBIT in the text section and in the
tables of this report. Operating profit is referred to as EBIT.


Outlook (unchanged)

Kemira's vision is to be a leading water chemistry company. Kemira will continue
to focus on improving profitability and reinforcing positive cash flow. The
company will also do investments to secure the future growth in the water
treatment business.
Kemira's financial targets remain as communicated in connection with the Capital
Markets Day in September 2010. The company's medium term financial targets are:

-          revenue growth in mature markets > 3% per year, and in emerging
markets > 7% per year

-          EBIT, % of revenue > 10%

-          positive cash flow after investments and dividends

-          gearing level < 60%.


The basis for growth is the growing water chemicals markets and Kemira's strong
know-how in water quality and quantity management. Increasing water shortage,
tightening legislation and customers' needs to increase operational efficiency
create opportunities for Kemira to develop new water applications for both new
and current customers. Investment in research and development is a central part
of Kemira's strategy. The focus of Kemira's research and development activities
is on the development and commercialization of new innovative technologies for
Kemira's customers globally and locally.

Kemira expects the volume recovery that was seen in 2010 to continue in 2011,
and Kemira's revenue is expected to be slightly higher than in 2010. Despite the
rising raw material prices, Kemira expects the operative EBIT in 2011 to be
higher than in 2010.

Press and analyst meeting and conference call

Kemira will arrange a press conference for analysts and the media on Tuesday,
May 3, 2011 starting at 10.30 am at Kemira House, Porkkalankatu 3, Helsinki. In
the conference, Kemira's President and CEO Harri Kerminen will present the
results. The press conference will be held in Finnish. Presentation material
will be available on Kemira's website at www.kemira.com under Investors in
English and at www.kemira.fi in Finnish at 10.30 am.


A conference call in English will begin at 1 pm Finnish time. In order to
participate in the call, please dial +44 (0)20 7162 0077, code 894289 ten
minutes before the conference begins. Presentation material will be available on
Kemira's website. A recording of the conference call will be available on
Kemira's website later the same day.


For more information, please contact


Kemira Oyj
Tero Huovinen, Director, Investor Relations
+358 10 862 1980



Kemira is a global two billion euro chemicals company that is focused on serving
customers in water-intensive industries. The company offers water quality and
quantity management that improves customers' energy, water, and raw material
efficiency. Kemira's vision is to be a leading water chemistry company.

www.kemira.com
www.waterfootprintkemira.com


[HUG#1511526]

Attachments:

Link to the January-March 2011 interim report (.pdf).pdf