Kemira Oyj - Financial Statement Release

Kemira Oyj's Financial Statements Bulletin 2010: Strong financial performance

Kemira Oyj
Stock exchange release
February 09, 2011 at 8.30 am (CET+1)

New disclosure procedure

Kemira Oyj follows the new disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority and hereby publishes
its financial statement bulletin enclosed to this stock exchange release.
Kemira's financial statement bulletin is attached to this release in pdf format
and is also available on the company's web site at www.kemira.com.

Kemira Oyj's Financial Statements Bulletin 2010: Strong financial performance

Fourth quarter:

  * Revenue increased by 10% to EUR 546.6 million (496.2).
  * Operative EBIT (operating profit, excluding non-recurring items) increased
    by 24% to EUR 40.2 million (32.5) and the margin increased to 7.4% (6.5%).
  * Net profit from the continuing operations attributable to owners of the
    parent company more than doubled to EUR 23.7 million (10.5) and earnings per
    share from continuing operations to EUR 0.15 (0.07).

Full year:

  * Revenue increased by 10% to EUR 2,160.9 million (1,969.9).
  * EBIT (operating profit) increased by 42% to EUR 156.1 million (109.7).
    Operative EBIT increased by 30% to EUR 162.3 million (124.9) and the margin
    increased to 7.5% (6.3%).
  * Net profit from the continuing operations attributable to owners of the
    parent company doubled to EUR 110.9 million (54.0) and earnings per share
    from continuing operations increased by 83% to EUR 0.73 (0.40).
  * Gearing improved to 39% (53%).
  * The Board of Directors proposes a cash dividend of EUR 0.48 per share (0.27)
    to the Annual General Meeting 2011, totaling EUR 73 million (41), or about
    60% of the operative net profit.
  * In 2011, Kemira expects the revenue to be slightly higher and the operative
    EBIT higher than in 2010.
  * Tikkurila Oyj was separated from Kemira on March 26, 2010 and is reported
    under Discontinued operations (see tables).

Kemira's President and CEO Harri Kerminen:"I am pleased about our achievements in 2010. We were able to increase revenues
by 10% supported by the recovered demand in many of our customer industries. At
the same time, profitability improved significantly, we strengthened the balance
sheet and our cash flow was strong.

The Paper segment managed to increase its profitability by nearly 70%, while
revenues benefited from the recovering volumes. The Oil & Mining revenue grew
close to 30% and at the same time its profitability doubled. The Municipal &
Industrial segment increased its sales especially to industrial customers and
its profitability was good.

One of the most important activities during the year was the listing of the
paints and coatings business, Tikkurila, on the Helsinki Stock Exchange. Besides
the achieved improved financial position, Tikkurila's spin-off together with the
divestments sharpened our profile as a water treatment chemical company. In
2010, already more than 75% of our revenues came from the water business.

The establishment of the Center of Water Efficiency Excellence (SWEET) together
with VTT was an important strategic investment and will provide the essential
platform needed to generate organic growth from both, new and existing customer
industries. We also strengthened our presence in China and India, two fast
growing emerging markets. Our strong financial position allows us to carry out
further investments to secure future growth in the water treatment business,
both organically and through acquisitions.

Looking ahead, Kemira is a financially solid company with leading positions in
the water treatment chemical markets and with highly motivated and competent
employees. We expect 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."


Key figures and ratios
Figures in the tables and in the text in the text section of the report are for
continuing operations excluding Tikkurila, unless otherwise mentioned. Tikkurila
Oyj was separated from Kemira on March 26, 2010. It is reported under
Discontinued operations (see tables).

EUR million                  Oct-Dec 2010 Oct-Dec 2009 Jan-Dec 2010 Jan-Dec 2009

Revenue                             546.6        496.2      2,160.9      1,969.9

EBITDA                               64.1         38.5        265.7        207.2

EBITDA %                             11.7          7.8         12.3         10.5
--------------------------------------------------------------------------------
Operative EBIT                       40.2         32.5        162.3        124.9

EBIT                                 27.2         17.3        156.1        109.7
--------------------------------------------------------------------------------
Operative EBIT, %                     7.4          6.5          7.5          6.3

EBIT, %                               5.0          3.5          7.2          5.6
--------------------------------------------------------------------------------
Financial income and                 -6.7        -10.5        -27.4        -37.8
expenses
--------------------------------------------------------------------------------
Profit before tax                    22.9          7.6        137.9         67.1
--------------------------------------------------------------------------------
Net profit from continuing           25.1         11.4        115.9         57.7
operations
--------------------------------------------------------------------------------
Net profit                           25.1        9.3**     646.9***       85.5**
--------------------------------------------------------------------------------
EPS, EUR, from continuing
operations                           0.15         0.07         0.73         0.40
--------------------------------------------------------------------------------
Capital employed*                 1,665.1      1,659.3      1,665.1      1,659.3

ROCE, %*                              9.9          6.3          9.9          6.3
--------------------------------------------------------------------------------
Cash flow after investments          27.4       26.9**      168.6**      202.2**
--------------------------------------------------------------------------------
Capital expenditure                  29.1         28.7        107.8         68.7
--------------------------------------------------------------------------------
Equity ratio, % at period-
end                                  54**         45**         54**         45**
--------------------------------------------------------------------------------
Gearing, % at period-end             39**         53**         39**         53**
--------------------------------------------------------------------------------
Personnel at period-end             4,935      8,493**        4,935      8,493**



* 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 can be found on www.kemira.com > Investors >
Financial information. Due to the rights offering arranged in 2009, historical
per share key figures have been adjusted with the following calculation formula:
average number of shares x 1.1. In this report, comparative figures are provided
in parentheses following the operational and financial results and refer to the
same item in the fourth quarter or the full year 2009, unless otherwise stated.
Operating profit excluding non-recurring items is referred to as Operative EBIT
in the text section and in the tables of this report and operating profit is
referred to as EBIT.

Dividend

On December 31, 2010, Kemira Oyj's distributable funds totaled EUR 458,476,077
of which net profit for the period accounted for EUR 194,353,402. No material
changes have taken place in the company's financial position after the balance
sheet date.

Kemira Oyj's Board of Directors proposes to the Annual General Meeting to be
held on March 22, 2011 that a dividend of EUR 0.48 on the basis of the adopted
balance sheet for the financial year ended December 31, 2010 shall be paid,
totaling approximately EUR 73 million.

Outlook

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 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 887019 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#1486739]

Attachments:

Link to the Corporate Governance Statement (.pdf).pdf

Link to the Financial statements bulletin 2010 (.pdf).pdf