2007-10-31 08:03:57 CET

2007-10-31 08:03:57 CET


REGULATED INFORMATION

English
Kemira GrowHow Oyj - Interim report (Q1 and Q3)

Kemira GrowHow Oyj Interim Report 1 January - 30 September 2007



- The third quarter result improved from the corresponding period in
the previous year.
- Net sales of the third quarter increased by 4 percent and were EUR
320.4 (306.6) million.
- The third quarter EBIT was EUR 21.8 (19.1) million and EBIT
excluding the effect of unrealized gas derivatives and non-recurring
items was EUR 13.9 (12.4) million.
- Earnings per share were EUR 0.24 (0.21) for the third quarter and
EUR 0.75 (-0.20) for the first nine months.
- January - September net sales were EUR 1,002.4 (883.8) million.
- January - September EBIT was EUR 60.7 (2.6) million and EBIT
excluding the effect of unrealized gas derivatives and non-recurring
items was EUR 59.2 (-7.8) million.
- European Commission approved on 21 September 2007 the acquisition
of shares in Kemira GrowHow Oyj by Norwegian Yara International ASA
through a public tender offer. The completion date of the tender
offer was 4 October 2007, and the ownership of those shares, for
which the tender offer was accepted, was transferred to Yara on 9
October 2007.
- After the completion of the tender offer, Yara owns 97.46 percent
of the shares and votes in Kemira GrowHow Oyj, excluding the shares
held by Kemira GrowHow Oyj. Yara announced on 11 October 2007 that it
initiates the redemption proceeding of the remaining shares in
accordance with the Finnish Companies' Act.
- Competition Commission gave a final approval in September to Kemira
GrowHow's and Terra Industries' joint venture in the United Kingdom.
The joint venture's operations began on 1 October 2007



Key figures                 Q3/2007 Q3/2006 Q1 - Q3/2007 Q1 - Q3/2006
Net sales, EUR million        320.4   306.6      1,002,4        883.8
EBIT, EUR million              21.8    19.1         60.7          2.6
EBIT excluding unrealized
gas derivatives and
non-recurring items, EUR
million                        13.9    12.4         59.2         -7.8
Result before taxes, EUR
million                        21.4    15.1         56.9         -5.0
Net result attributable to
equity holders of the
parent company, EUR million    13.3    11.9         41.6        -11.4
Earnings per share, EUR        0.24    0.21         0.75        -0.20
Equity ratio,%                    -       -         40.6         35.4
Gearing, %                        -       -         44.2         71.2



Kemira GrowHow Group in July - September

Kemira GrowHow's third quarter was better than in the previous year.
Net sales increased by 4 percent and were EUR 320.4 (306.6) million.

Consolidated operating profit during the third quarter of 2007 was
EUR 21.8 (19.1) million. EBIT as a percentage of net sales improved
during the third quarter from approximately 6 percent in 2006 to
nearly 7 percent in 2007. EBIT as a percentage of net sales, the
effect of unrealized gas derivatives and non-recurring items
excluded, was 4.3 (4.0) percent.



Net sales. EUR million    Q1    Q2    Q3    Q4 Q1 - Q4
2007                   349.5 332.6 320.4

2006                   272.9 304.2 306.6 282.5 1,166.2




EBIT.          Q1   Q2   Q3  Q4 Q1 - Q4
EUR million
2007         21.4 17.6 21.8

2006        -19.1  2.6 19.1 8.5    11.1



A table of net non-recurring items is presented in the interim
financial statements part of this interim report (page 28).

Kemira GrowHow's net financial expenses, excluding the share of the
results of joint ventures and associated companies, were EUR -1.2
(-3.0) million during the third quarter of 2007. Net gains on foreign
exchange were EUR 0.9 (-1.0) million during the third quarter. Kemira
GrowHow's share of the results of joint ventures and associated
companies was EUR 0.8 (-1.0) million.

Income taxes for the third quarter were EUR -7.6 (-2.7) million and
result attributable to equity holders of the parent company was EUR
13.3 (11.9) million.

Earnings per share in July - September were EUR 0.24 (0.21).

Kemira GrowHow Group in January - September

Kemira GrowHow's first nine months was clearly better than in the
previous year. Net sales increased by 13 percent and were EUR 1,002.4
(883.8) million.

Consolidated operating profit of the first nine months of 2007 was
EUR 60.7 (2.6) million. EBIT as a percentage of net sales improved
from 0.3 percent in 2006 to 6.1 percent in 2007. EBIT as a percentage
of net sales, the effect of unrealized gas derivatives and
non-recurring items excluded, was 5.9 (-0.9) percent.

Kemira GrowHow's net financial expenses, excluding the share of the
results of joint ventures and associated companies, were EUR -6.8
(-8.0) million in January - September. Net losses on foreign exchange
were EUR -0.5 (-1.2) million. Kemira GrowHow's share of the results
of joint ventures and associated companies was EUR 3.0 (0.3) million.

Income taxes for the first nine months were EUR -13.7 (-5.2) million.
Income tax expense for the interim period is calculated separately
for each country in which the Group operates and it is based on an
estimated average annual effective tax rate in each country. In
accordance with prudence principle, deferred tax assets have not been
recorded from the results of loss-making units.

The result attributable to equity holders of the parent company for
the January - September period was EUR 41.6 (-11.4) million and
earnings per share were EUR 0.75 (-0.20). Kemira GrowHow Oyj has not
issued options, warrants, convertible bonds or similar instruments
which would dilute the earnings per share.

The third quarter of the strategic business units

Crop Cultivation

Net sales of the Crop Cultivation business unit increased slightly
during the third quarter compared with the corresponding period in
2006 and were EUR 244.1 (238.7) million.

The third quarter operating profit was EUR 19.3 (13.3) million. EBIT
excluding the effect of unrealized gas derivatives and non-recurring
items was EUR 11.4 (6.9) million. The third quarter operating result
of 2007 was improved especially by higher sales prices of
fertilizers. EBIT as percentage of net sales, gas derivatives and
non-recurring items excluded, improved from approximately 3 percent
in the third quarter of 2006 up to 4.7 percent in 2007.



Net sales. EUR million    Q1    Q2    Q3    Q4 Q1 - Q4
2007                   276.7 261.8 244.1

2006                   208.9 240.9 238.7 206.7   895.3





EBIT.          Q1   Q2   Q3  Q4 Q1 - Q4
EUR million
2007         16.3 14.1 19.3

2006        -18.4 -0.7 13.3 5.4    -0.4




The fertilizer business in Europe is highly seasonal in nature.
Typically the sales and profitability of European fertilizer
producers are stronger during the first and the second quarters of
the year compared with the third and the fourth quarters of the year,
since spring is the main application season for fertilizers in
Europe. The year 2006 was, however, exceptional, because high natural
gas prices substantially weakened the first half-year results and
producers were not able to pass on the gas price increases fully to
fertilizer prices. As the gas markets normalized during the latter
half of 2006, it seems that the seasonality of the European
fertilizer business is returning to the typical pattern.

Sales volumes in thousands of metric tons


Q3/2007 Q3/2006 Q1 - Q3/2007 Q1 - Q32006 Q1-Q4/2006
    978   1,045        3,126       2,939      3,814



The third quarter sales volumes were down by approximately 6 percent
compared with the corresponding period in the previous year. The
sales volumes decreased in almost all the market areas. The sales
volumes grew mainly in Russia and Ukraine. Also overseas export
increased.

The third quarter sales prices of nitrogen fertilizers were slightly
lower than last year. Sales prices of NPK fertilizers were
significantly higher than last year in Continental Europe while the
increase was lower in the UK.

The price of natural gas was on average about 10 percent higher than
in the corresponding period in the previous year.

Industrial Solutions


The third quarter net sales of the Industrial Solutions business unit grew by
13 percent in 2007 and were EUR 85.9 (76.0) million.



The third quarter operating profit was EUR 9.3 (6.3) million.
EBIT excluding the effect of unrealized gas derivatives and non-recurring items was
EUR 8.1 (6.0) million. EBIT as a percentage of net sales, gas derivatives and
non-recurring items excluded, increased from approximately 8 percent in the
third quarter of 2006 to 9.5 percent in the third quarter of 2007.





Net sales. EUR million   Q1   Q2   Q3   Q4 Q1 - Q4
2007                   80.9 79.8 85.9

2006                   75.8 72.2 76.0 84.9   309.0




EBIT.        Q1  Q2  Q3  Q4 Q1 - Q4
EUR million
2007        7.2 7.1 9.3

2006        0.9 6.4 6.3 6.3    19.9



During the third quarter, feed phosphate volumes in Europe were above
the previous year's level and prices continued to improve.

The major contributors to improvement of operating profit were higher
phosphoric acid and feed phosphates prices and sales volumes which
more than offset the negative effect of higher gas prices. In
addition, the maintenance shutdown of the mining operations were this
year postponed to the fourth quarter, while in 2006 it took place
during the third quarter.

January - September of the strategic business units

Crop Cultivation

Net sales of the Crop Cultivation business unit increased during the
first nine months by 14 percent compared with the corresponding
period in 2006 and were EUR 782.5 (688.6) million.

The operating result in January - September was EUR 49.7 (-5.8)
million. EBIT excluding the effect of unrealized gas derivatives and
non-recurring items was EUR 49.0 (-17.4) million. The operating
result of the first nine months of 2007 was improved especially by
less expensive natural gas and thanks to that, higher utilization
rate of ammonia plants, as well as by higher fertilizer sales
volumes. EBIT as percentage of net sales, gas derivatives and
non-recurring items excluded, improved from -2.5 percent in the
previous year to 6.3 percent.
One of the three nitric acid factories of Kemira GrowHow's plant in
Tertre, Belgium, suffered a fire in early February. There were no
human injuries or environmental damages. The production shut-down in
the nitric acid plant was approximately 4 months. During the
production shut-down the fertilizer production at Tertre was reduced
by approximately 25 percent. The nitric acid plant is insured for
property damage and business interruptions. Impairment losses of
tangible assets, totalling to EUR 0.9 million, were recorded due to
the fire. EUR 0.7 million of the impairment losses were allocated to
Crop Cultivation business unit. In total EUR 7.9 million of insurance
compensations were recognized due the fire during the first nine
months, and EUR 7.1 million of the compensations were allocated to
Crop Cultivation business unit.
The sales volumes in January - September were up by approximately 6
percent compared with the corresponding period in the previous year.
The sales volumes grew in all the market areas except in Continental
Europe and the Baltic Rim area.

The sales prices of nitrogen fertilizers were in January - September
slightly higher in Continental Europe, but remained lower in the UK
than last year. Sales prices of NPK fertilizers were significantly
higher in Continental Europe but still lower in the UK than last
year.

The price of natural gas was on average about 20 - 30 percent less
expensive than in the corresponding period in the previous year due
to lower prices particularly in the first half of the year. Thanks to
less expensive natural gas and higher price of ammonia, ammonia
plants were, unlike last year, in full production through the whole
winter, and there were no additional costs due to shut-downs and
restarts of ammonia plants. There was also no need to purchase as
much ammonia as last year. Lower natural gas prices, stable operation
of the ammonia plants and lower ammonia purchases together with
higher sales volumes contributed the most to operating profit
improvement.

Industrial Solutions

Industrial Solutions business unit's net sales of the first nine
months increased by 10 percent in 2007 and were EUR 246.6 (224.1)
million.

January - September operating profit was EUR 23.6 (13.6) million.
EBIT excluding the effect of unrealized gas derivatives and
non-recurring items was EUR 21.7 (13.4) million. EBIT as a percentage
of net sales, gas derivatives and non-recurring items excluded,
increased from 6.0 percent in the first nine months of 2006 to 8.8
percent in the corresponding period of 2007.

EUR 0.2 million of impairment losses due to the fire at Tertre plant
were allocated to Industrial Solutions business unit. Allocated
insurance compensations were EUR 0.8 million.

During January - September, feed phosphate volumes in Europe were
above the previous year's level and prices increased clearly.

The major contributors to improvement of operating profit were higher
phosphoric acid and feed phosphates prices, less expensive natural
gas and higher utilization rate of ammonia plants.

Kemira GrowHow sold in May its Danish hydrochloric acid, sulphuric
acid and canning businesses to Gropa A/S. Kemira GrowHow will,
however, continue to provide its nitric acid and ammonia based
products in Denmark. The sale had no material effect on Kemira
GrowHow's net sales or operating profit.

Kemira GrowHow and Thermphos Trading GmbH. a fully-owned subsidiary
of a Dutch company Thermphos International B.V., signed a contract in
June to set up a joint venture company. Crystalis Oy, to produce
purified phosphoric acid (PPA). The joint venture is located at
Kemira GrowHow's site in Siilinjärvi. Finland.

Crystalis Oy's production facility will be integrated into Kemira
GrowHow's Siilinjärvi operations and the new company will use
Thermphos' and Kemira GrowHow's proprietary production technology.
The basic raw material for PPA is the phosphoric acid produced at
Siilinjärvi by Kemira GrowHow. Crystalis' production process will be
closely integrated into existing operations at Siilinjärvi, resulting
in improvement of competitiveness of Kemira GrowHow's phosphoric acid
production at Siilinjärvi plant. Crystalis Oy has started
preparations for building the production facilities to Siilinjärvi
and will start operations in the fourth quarter of 2008. The planned
annual production of PPA is 30.000 tons (P2O5).

Kemira GrowHow, a Finnish energy company Fortum and a local energy
company Savon Voima Lämpö agreed in May that Fortum will provide
district heat in Siilinjärvi starting from the beginning of 2008.
Heat generated at Kemira GrowHow's Siilinjärvi plant by Fortum's
sulphur burning unit and Kemira GrowHow's sulphuric acid plant
processes will be utilized in district heating. The project will
utilize the investment to increase production of sulphuric acid and
energy at Kemira GrowHow's Siilinjärvi plant, which was decided last
autumn by Kemira GrowHow and Fortum.
Financing

At 30 September 2007, the Group's net interest-bearing liabilities
amounted to EUR 152.4 million, compared with EUR 219.7 million at 30
September 2006 and EUR 185.9 at 31 December 2006. The proportion
which fixed-interest loans represented within the total amount of the
Group's interest-bearing loans was about 39 percent at the end of the
review period. Pension loans are considered to be floating rate
loans. At the end of the review period 30 September 2007 liquid funds
amounted to EUR 27.0 million (EUR 42.1 million at 30 September 2006
and EUR 20.0 million at 31 December 2006).

The Group's equity ratio was 40.6 percent at the end of the review
period 30 September 2007 (35.4 percent at 30 September 2006 and 37.2
percent at 31 December 2006). The gearing ratio was 44.2 percent
(71.2 percent at 30 September 2006 and 59.5 percent at 31 December
2006).

Kemira GrowHow's main liquidity reserve is a syndicated revolving
credit facility that is used for general corporate purposes. The EUR
150 million credit facility is in place until the year 2010. The
utilization of the revolving credit facility as of 30 September 2007
was EUR 80 million, but the utilization was decreased by EUR 40
million in October. Kemira GrowHow also has a EUR 300 million
domestic commercial paper program, a long-term bilateral bank loan
and pension loans. Other funding sources are financial leasing
arrangements and credit facilities with local house banks.

Cash flow during January - September 2007 was clearly better than in
the previous year as cash flow from operations was EUR 71.7 (-34.6)
million and EUR 41.3 (-66.9) million after investing activities. The
main reason for the increase in cash flow compared with the previous
year was better operating result and a decrease in net working
capital.

Capital expenditure

Gross capital expenditure was EUR 33.8 (58.3) million during the
first nine months of 2007. Carbon dioxide emission right allowances,
EUR 0.5 (9.4) million, are included in gross capital expenditure.
Emission rights have been recorded at fair value when received. The
most significant investment made during the review period was related
to automatization of the fertilizer plant at Siilinjärvi site. There
were no other major investments made during the review period.
Previous year's gross investments include the acquisition of 19
percent of Hankkija-Maatalous Oy shares.

Depreciation and amortization were in January - September EUR 32.6
(33.5) million and impairment losses EUR 2.5 (0.1) million.
Impairment losses totalling to EUR 1.3 million, consisting of
impairment of goodwill and intangible assets allocated to ZAO
Agroprochimija, Russia, were recorded in the second quarter due to
redirection of business. Other impairment losses were recognized of
property, plant and equipment and they are mainly related to assets
destroyed at the fire at Tertre plant. Proceeds from sales of fixed
assets were EUR 7.3 (22.6) million. Net gains from sales of assets
were EUR 5.0 (10.2) million.

Cash flow from investing activities in January - September was EUR
-30.4 (-32.3) million.

In 2007, capital expenditure excluding possible acquisitions is
estimated to be approximately EUR 50 million, including maintenance
investments of approximately EUR 30 million. The most significant
capital expenditure in 2007 are investments in energy efficiency
improvement and scheduled maintenance of the ammonia plant at Tertre,
Belgium and investments in sulphur burning unit and automatization of
fertilizer plant at Siilinjärvi, Finland.

Personnel

Kemira GrowHow had 2,492 (2,519) employees on 30 September 2007. The
average number of personnel was 2,521 (2,624). The number of
personnel in Finland was 1,047 (1,054) at the end of September and
1,072 (1,090) on average.
Shares and share capital

At the end of the review period, 30 September 2007, the share capital
of Kemira GrowHow Oyj amounted to EUR 155,973,000 consisting of
57,208,857 shares (before the deduction of treasury shares). Each
share, with the exception of the treasury shares, entitles its holder
to one vote at the General Meetings of Shareholders of Kemira GrowHow
Oyj. The share has no nominal value.
The Board of Directors of Kemira GrowHow Oyj used the authorizations
issued by the Annual General Meeting of 2006 to dispose of the
Company's own shares. Based on the Board of Directors' decision,
Kemira GrowHow Oyj transferred on 15 March 2007 77,320 shares to
persons involved in the 2004 share-based incentive plan.
At 30 September 2007, Kemira GrowHow Oyj held 1,783,380 own shares,
representing in total 3.12 percent of the number of issued shares.


At the end of the review period, the quoted price of Kemira GrowHow Oyj shares
stood at EUR 12.01 The highest quoted price in January - September 2007 was
EUR 12.21 and the lowest was EUR 6.67. The volume weighted average quoted price
in January - September 2007 was EUR 10.20. The share capital had a market
value of EUR 665.7 million at the end of September 2007. The volume of shares
traded during the January - September period was equivalent to 180 percent
of the average number of shares outstanding.



Equity attributable to equity holders of the parent company was EUR
6.15 (5.54) per share at 30 September 2007. The number of shares used
in calculating this key ratio has been reduced by the number of
treasury shares.
Yara's tender offer for shares in Kemira GrowHow Oyj
Yara Nederland B.V., a fully-owned subsidiary of Yara International
ASA, acquired 24 May 2007 17,188,480 shares in Kemira GrowHow Oyj
from the Government of Finland. The purchase price paid for the
shares was EUR 12.12 per share. The acquired shares represented 30.05
percent of all shares and votes in Kemira GrowHow.
As a result of the acquisition of the shares, Yara was under the
obligation to launch a mandatory tender offer under the Chapter 6
Section 10 of the Finnish Securities Markets Act for the remaining
shares in Kemira GrowHow. The tender offer began on 20 July and
expired on 7 September 2007. The tender offer period was, however,
extended until 27 September 2007. The tender offer was completed on 4
October 2007 and the ownership of the shares was transferred on 9
October 2007. After the completion of the tender offer, Yara
Nederland B.V.'s ownership, 54,019,653 shares, represented 97.46
percent of the shares and votes in Kemira GrowHow Oyj, excluding the
shares held by Kemira GrowHow Oyj.
The European Commission approval is subject to certain conditions
which Yara International ASA is committed to fulfil. The approval of
the European Commission is subject to the following commitments,
which in aggregate correspond to less than 3 percent of Kemira
GrowHow's revenues:
- Divestment of part of Yara's nitrogen chemicals business in Köping,
Sweden
- Divestment of part of Kemira GrowHow's nitrogen chemicals business
in Tertre, Belgium
- Dissolution of Yara's Fertisupply distribution joint venture in
Denmark
- Sale of Yara's share in the Zemnor distribution joint venture in
Latvia
- Divestment of the CO2 liquefaction plant in Billingham, UK,
currently owned and operated by Kemira GrowHow's newly established
joint venture GrowHow UK Limited.
Yara International ASA / Yara Nederland B.V. has elected to fulfil
the above-mentioned commitments within six months from the completion
date in order to finalize the tender offer.
The tender offer was completed with respect to all Kemira GrowHow's
shareholders who had validly accepted the tender offer by the end of
the offer period. The offered cash consideration in the tender offer
was EUR 12.12 per share. The offer valued Kemira GrowHow at EUR 671.8
million on an equity value basis. The cash consideration corresponded
to a premium of 30.7 percent over the closing price of EUR 9.27 per
share on 23 May 2007, the last trading day prior to the tender offer
obligation, and a premium of 30.8 percent over the volume-weighted
average price during the previous 3 months preceding the tender offer
obligation, i.e. from 24 February to 23 May 2007. The offer price
also represented a premium of 17.1 percent over Kemira GrowHow's
all-time high traded share price prior to the tender offer, EUR 10.35
per share. Additionally Yara paid interest accruing at an annual rate
of 5.00 percent from date on which an account operator or a custodian
had received the acceptance of the tender offer by a shareholder of
Kemira GrowHow until and including the payment day of the offer price
pursuant to the tender offer to such shareholder.
Yara Nederland B.V. announced on 11 October 2007 that it initiates a
redemption proceeding concerning the remaining minority shares in
Kemira GrowHow Oyj in accordance with the Finnish Companies Act. Yara
Nederland B.V. may also acquire more Kemira GrowHow Oyj shares from
the market.
Shareholders

As of 30 September 2007, Kemira GrowHow's ownership structure was the
following:


International institutions and nominee registered shareholders
(*                                                              64.3%
Finnish institutions                                            22.7%
Finnish households                                               9.9%
Kemira GrowHow Oyj                                               3.1%


(* Yara Nederland B.V. acquired 24 May 2007 30.05 percent of the
shares in Kemira GrowHow Oyj from the Government of Finland. Pursuant
to article 7(2)(b) of the EC Council Regulation EC 139/2004 an
acquirer is not allowed to exercise the voting rights attached to the
purchased securities during the proceedings of the European
Commission. In accordance with regulation, Yara did not exercise the
voting rights related to the shares purchased in connection with the
share purchase until the European Commission had approved the share
purchase and the tender offer. The approval took place on 21
September 2007.

Yara Nederland B.V. announced on 11 October 2007, that its ownership,
after the completion of the tender offer, was 97.46 percent of the shares
and votes in Kemira GrowHow Oyj, excluding the shares held by Kemira GrowHow Oyj.
The ownership of the shares acquired through the tender offer was transferred
to Yara on 9 October 2007.



The Board of Directors of Kemira GrowHow Oyj has no authorization to issue
convertible bonds or warrants or options. The Annual General Meeting held on
3 April 2007 authorized the Board of Directors to dispose of the Company's own
shares through a share issue and to issue new shares through a subscribed issue.
The Board of Directors is authorized to dispose a maximum number of 1,860,700
Company's own shares through a share issue. The authorization is effective
until 31 May 2008. The Board of Directors is also authorized to issue
a maximum of 6,000,000 new shares through one or more subscribed issues.
In accordance with the authorization, the Board of Directors may deviate
from the shareholders' pre-emptive rights to subscribe for Company shares if
there is a persuasive economic reason for the company to do so. The authorization
is effective until 31 May 2008. These authorizations have not been used.


Extraordinary General Meeting


The Extraordinary General Meeting of Kemira GrowHow Oyj held at 22 October 2007
amended the Articles of Association so that the number of members in
the Board of Directors was reduced to three and that the office of Vice Chairman
of the Board of Directors no longer exists.



The previous Board of Directors resigned on 22 October 2007, and the Extraordinary
General Meeting elected a new Board of Directors. Thorleif Enger was elected
as the chairman and Sven Ombudstvedt and Ken Wallace as members of the
Board of Directors.



The Extraordinary General Meeting granted discharge from liability to
the resigned members of the Board of Directors.



Efficiency improvements
During 2007 Kemira GrowHow aims to carry out efficiency improvement
projects, which would improve result in total by more than EUR 10
million. These projects include projects to improve production
efficiency, cutting down fixed costs, savings in logistics and
development of business in Eastern Europe. The most significant
on-going project is the project to increase efficiency of the ammonia
plant in Tertre. The project is estimated to be finished in spring
2008.
The joint venture in the UK with Terra Industries

In October 2006 Kemira GrowHow Oyj and Terra Industries Inc. entered
into a Memorandum of Understanding which set out their agreement to
create a joint venture to operate the fertilizer and associated
process chemicals businesses of both companies in the United Kingdom.
The Competition Commission (UK) gave a final approval of the joint
venture in September and the joint venture's operations began on 1
October 2007.

The joint venture, GrowHow UK Limited, is held 50/50 by Kemira
GrowHow and Terra and will own and operate the site of Kemira GrowHow
UK Limited at Ince and the sites of Terra Nitrogen (UK) Limited on
Teesside and Severnside. The annual net sales of the combined
operations included in the joint venture exceeded EUR 500 million in
2006. Through the joint venture, Kemira GrowHow and Terra expect to
create significant cost and operational synergies that would enhance
their ability to service and compete in increasingly challenging
markets.

GrowHow UK Limited announced in early October that it will close its
Severnside manufacturing facility. Production at the site is expected
to end by the end of January 2008, affecting 127 jobs.

Other events during the review period
The Finnish Ministry of Trade and Industry made in June a decision
about the mining rights in Sokli and issued Kemira GrowHow a two year
time period to start the mining operations in the Sokli area. If the
period of two years is not long enough and Kemira GrowHow believes
that it is possible to develop the deposit and pursue the opening of
the mine. Kemira GrowHow may again apply for the mining rights.
The Sokli mine area is located in Eastern Lapland in Finland, where
it is possible to extract niobium and phosphorus.
Market overview

During the latter half of last year, fertilizer deliveries of
European fertilizer producers fell by up to 10 percent compared with
the previous season. This was due mainly to a shift of last autumn's
fertilizer purchases to this spring, although the total fertilizer
deliveries of European fertilizer producers in the 2006/07 season,
which ended in June, are estimated to have decreased by up to 5
percent compared with the previous season. Globally fertilizer
consumption is estimated to have grown by nearly 5 percent during the
2006/07 season and it is expected to further increase by 3 percent in
the new 2007/08 season. In a longer term, the average annual growth
in global consumption is expected to remain at about 2 - 3 percent.
The decline in consumption in the western part of the European Union
is compensated for by increasing consumption in the eastern part of
the Union. Global nitrogen fertilizer production capacity is
estimated to have increased last year at a slower pace than
anticipated. European fertilizer supply has decreased due to plant
closures.

The European Commission has agreed to abolish the 10 percent
mandatory set aside agricultural area for the 2007/08 season. This is
expected to increase fertilizer consumption.

Global cereal stocks continue to be the main driver of the fertilizer
market. The recovery of world meat production, the surge in
bio-ethanol production in the United States and the currently
prevailing rather favourable global economic conditions are expected
to result in continuous growth in global cereal demand. Cereal
stocks, which were already at historically low levels, are estimated
to have decreased further during the 2006/07 season by more than 10
percent. Due to increasing demand, the stocks are now expected to
continue decreasing during this season.

Global market prices of commodity fertilizers such as urea and
diammonium phosphate (DAP) have strengthened substantially during
this year, decreasing the pressure of fertilizer imports from outside
of Europe.

The prices of wheat and other cereals have increased during this
spring and summer and are at a record high level. High cereal prices
improve the farmers' financial situation. Historically, improving
cereal prices have increased fertilizer consumption.

The feed phosphate market in Europe has remained stable. The supply
and demand balance of phosphoric acid has lately tightened further.
The market prices are substantially influenced by the price of
phosphoric acid annually agreed by India. This price in US dollars
increased by more than 20 percent this year. Also the price of DAP
has risen strongly supporting the price of phosphoric acid.
Current outlook

Fertilizer demand is expected to remain at a good level also during
the rest of 2007 and prices are expected to remain high or even
increase. The price of the most important raw material, natural gas,
is expected to be higher during the last quarter of 2007 than during
the last quarter of 2006. Also the prices of potash and sulphur are
rising.

The positive development of the Industrial Solutions business unit's
operations is expected to continue. The price increase of phosphoric
acid is being partly, with a delay, reflected also on the prices of
feed phosphates, because Kemira GrowHow's competitors are sourcing
the phosphoric acid to be used as raw material from the markets.
Kemira GrowHow has own phosphoric acid production thanks to own mine.
Industrial Solutions business unit's operating profit during the
fourth quarter is, however, expected to be lower than in the
corresponding period of 2006 due to the annual maintenance shutdown
of the mining operations, which this year has been postponed to the
fourth quarter.

Kemira GrowHow's operating profit of the whole year 2007,
non-recurring items excluded, is estimated to improve clearly from
2006. The fourth quarter result of this year will also include a
one-time gain resulting from the formation of the UK joint venture
GrowHow UK Ltd. with Terra industries.

All forecasts and estimates mentioned in this report are based on
current judgments of the economic environment and the actual result
may be significantly different.

Material risks and uncertainties

Kemira GrowHow's business is cyclical in nature due to the general
economic conditions of the fertilizer business and the cyclical
nature of the end-user markets. In addition, seasonal weather
conditions can have a negative effect on Kemira GrowHow's operations
and result.

Adverse changes in the supply and prices of natural gas and other
essential raw materials can also negatively affect Kemira GrowHow's
result if the cost increases cannot be passed on to end product
prices. The fluctuation between natural gas and oil derivative prices
has an effect on the market value of the contracts for the Group's
natural gas purchases and they can lead to significant result
volatility as the contracts are mainly related to future years.

Imports from Russia and Eastern Europe could create an imbalance in
supply and demand in Western European fertilizer markets unless the
EU maintains adequate protective measures especially to compensate
for the price differences of natural gas. Urea or other nitrogen
products manufactured in the low-price natural gas area can replace
part of the nitrate fertilizers traditionally used in Europe. Global
market prices of commodity fertilizers have an effect on fertilizer
imports from outside of Europe.

The nature of Kemira GrowHow's businesses exposes Kemira GrowHow to
risks of environmental costs and liabilities arising from the
manufacture, use, storage, transport and sale of materials that may
be considered to be harmful to nature or health and safety when
released into the environment. Many of Kemira GrowHow's operations
require environmental and other regulatory permits that are subject
to modification, renewal or revocation by issuing authorities.

EUR 170 million of the committed credit facilities of Kemira GrowHow,
whether drawn or undrawn, include covenants or other terms and
conditions. These terms and conditions do not restrict the use of the
respective credit facilities, but they can affect financing of the
Group in the future or may require negotiations with the providers of
funds. These credit facilities also include a condition that allows
the lenders to cancel the facilities and declare outstanding loans
due and payable if there is a change of control in Kemira GrowHow
Oyj. Based on the information received, the fact, that Yara Nederland
B.V. has gained control in Kemira GrowHow Oyj, does not cause the
loans to be declared due and payable and does not change the terms of
the facilities.

Kemira GrowHow's operational and strategic risks are described in the
Board of Directors' Review for 2006.


Kemira GrowHow Oyj
Board of Directors

Additional information:
Kemira GrowHow Oyj
Heikki Sirviö. CEO
tel. +358 10 215 2442

Kemira GrowHow Oyj
Kaj Friman. Deputy CEO. CFO
tel. +358 (0)50 62 626

Distribution:
Helsinki Stock Exchange
Media



KEMIRA GROWHOW GROUP

INTERIM FINANCIAL STATEMENTS 1 JANUARY - 30 SEPTEMBER 2007
These condensed interim financial statements are not audited. As a
result of rounding differences, the figures presented in the tables
may not add up to the total.
Condensed income statement


                                  7-9/   7-9/    1-9/   1-9/    1-12/
EUR million                       2007   2006    2007   2006     2006

Net sales                        320.4  306.6 1,002.4  883.8  1,166.2
Other operating income             8.2    8.9    21.3   24.5     29.6
Cost of sales                   -298.3 -286.9  -914.9 -874.2 -1,134.2
Fair value changes of currency
derivatives, net                  -0.6    1.2    -0.2    1.4      0.8
Net result of realized
commodity derivatives             -1.5    0.0    -3.8    0.3      1.0
Fair value changes of
unrealized commodity
derivatives, net                   3.7    0.4    -8.9    0.5     -7.9
Depreciation, amortization and
impairment                       -10.0  -11.2   -35.1  -33.5    -44.4
Operating profit/loss             21.8   19.1    60.7    2.6     11.1
Financial income and expenses     -1.2   -3.0    -6.8   -8.0    -11.0
Share of the net result of
associated companies and
joint ventures                     0.8   -1.0     3.0    0.3      0.1
Net financial items               -0.4   -4.0    -3.8   -7.6    -10.8
Result before income taxes        21.4   15.1    56.9   -5.0      0.3
Income taxes                      -7.6   -2.7   -13.7   -5.2     -6.8
Net result                        13.7   12.4    43.3  -10.2     -6.5
Attributable to minority
interests                          0.4    0.5     1.6    1.1      1.3
Attributable to equity holders
of the parent company             13.3   11.9    41.6  -11.4     -7.8
Total                             13.7   12.4    43.3  -10.2     -6.5

Earnings per share, EUR           0.24   0.21    0.75  -0.20    -0.14
Operating profit/loss, % of net
sales                              6.8    6.2     6.1    0.3      1.0
Net result attributable to
equity holders of the parent
company, % of net sales            4.2    3.9     4.2   -1.3     -0.7



Condensed balance sheet


EUR million                            30.9.2007 30.9.2006 31.12.2006
Assets
Non-current assets
Intangible assets and goodwill              12.4      24.5       14.9
Property, plant and equipment and
biological assets                          302.0     305.3      306.6
Holdings in associated companies and
joint ventures                              23.3      20.5       20.4
Available-for-sale shares                   15.3      15.2       15.3
Other investments                            4.5       2.6        4.5
Deferred tax assets                         28.1      31.1       33.1
Defined benefit pension assets              19.1      19.6       19.1
Total non-current assets                   404.7     418.8      414.0
Current assets
Inventories                                180.1     164.2      211.5
Receivables
Interest-bearing receivables                 2.6       8.0        3.2
Accounts receivable and other
interest-free receivables                  236.5     241.1      195.6
Tax receivables                              0.4       0.5        0.6
Total receivables                          239.5     249.6      199.3
Securities                                   7.6      19.7        3.3
Cash and bank                               19.5      22.3       16.7
Total current assets                       446.6     455.9      430.8
Total assets                               851.3     874.6      844.7

EUR million                            30.9.2007 30.9.2006 31.12.2006
Equity and liabilities
Equity
Share capital                              156.0     156.0      156.0
Share premium account                        8.5       8.5        8.5
Other reserves                               0.5       0.5        0.5
Other non-restricted equity                142.2     142.2      142.2
Paid-up unrestricted equity reserve          0.7         -          -
Treasury shares                            -10.6     -11.0      -11.0
Fair value reserve                             -       0.0          -
Hedging reserve                              1.5       1.1        1.5
Retained earnings and translation
difference                                   0.5      20.4       20.3
Net result for the period attributable
to equity holders of the parent
company                                     41.6     -11.4       -7.8
Attributable to equity holders of the
parent company                             340.9     306.4      310.1
Minority interest                            3.5       2.0        2.2
Total equity                               344.4     308.3      312.2
Non-current liabilities
Non-current interest-bearing
liabilities                                103.3     109.1      103.9
Non-current interest-free liabilities        0.0       1.1        0.3
Provisions for liabilities and charges       2.0       2.3        2.7
Deferred tax liabilities                    16.4      16.5       15.9
Defined benefit pension and other
long-term employee benefit liabilities      93.3      96.4       96.3
Total non-current liabilities              215.0     225.3      219.2
Current liabilities
Current interest-bearing liabilities        76.1     152.6      102.0
Short-term provisions                        5.4      10.9        5.4
Accounts payable and other current
interest-free liabilities                  208.1     173.5      199.6
Income tax payables                          2.3       3.9        6.3
Total current liabilities                  291.9     341.0      313.3
Total liabilities                          506.9     566.3      532.5
Total equity and liabilities               851.3     874.6      844.7



Statement of changes in equity


                                         Other      Paid-up
                       Share              non-    unrestricted          Fair
               Share  premium  Other   restricted    equity    Hedging  value
EUR million   capital account reserves   equity     reserve    reserve reserve
Equity at 1
January,
2006            156.0     8.5      0.5      154.4            -     0.1       -
Cash flow
hedges,
recognized in
equity              -       -        -          -            -     1.1       -
Cash flow
hedges,
transfer to
income
statement           -       -        -          -            -     0.3       -
Available-for
-sale shares,
change in
fair value          -       -        -          -            -       -     0.1
Available-for
-sale shares,
transfer to
income
statement           -       -        -          -            -       -       -
Other
changes             -       -      0.0          -            -       -       -
Tax effect
of net
income
recognized
directly
in equity           -       -        -          -            -    -0.4     0.0
Net income
recognized
directly
in equity           -       -      0.0          -            -     1.1     0.0
Recognized
income and
expense
for the
period              -       -      0.0          -            -     1.1     0.0
Dividends
paid                -       -        -      -12.2            -       -       -
Equity at 30
September,
2006            156.0     8.5      0.5      142.2            -     1.1     0.0





                                       Other      Paid-up
                     Share              non-    unrestricted          Fair
             Share  premium  Other   restricted    equity    Hedging  value
EUR million capital account reserves   equity     reserve    reserve reserve
Equity
at
1
January,
2007          156.0     8.5      0.5      142.2            -     1.5       -
Cash
flow
hedges,
recognized
in
equity            -       -        -          -            -     0.5       -
Cash
flow
hedges,
transfer
to
income
statement         -       -        -          -            -    -0.5       -
Other
changes           -       -      0.0          -            -       -       -
Acquisition
/
disposal
of treasury
shares            -       -        -          -          0.7       -       -
Tax effect
of net
income
recognized
directly
in equity         -       -        -          -            -     0.0       -
Net income
recognized
directly
in equity         -       -      0.0          -          0.7     0.0       -
Recognized
income
and expense
for the
period            -       -      0.0          -          0.7     0.0       -
Dividends
paid              -       -        -          -            -       -       -
Equity at
30
September,
2007          156.0     8.5      0.5      142.2          0.7     1.5       -




                                            Attributable
                                               to equity
                                 Cumulative   holders of
              Treasury Retained translation   the parent Minority  Total
EUR million     shares earnings  difference      company interest equity
Equity at 1
January,
2006              -1.7     23.3        -0.2        340.9      1.0  341.9
Exchange
rate
differences          -        -         0.1          0.1        -    0.1
Hedging of
net
investment in
foreign
entity               -        -         0.4          0.4        -    0.4
Cash flow
hedges,
recognized in
equity               -        -           -          1.1        -    1.1
Cash flow
hedges,
transfer to
income
statement            -        -           -          0.3        -    0.3
Available-for
-sale shares,
change in
fair
value                -        -           -          0.1        -    0.1
Available-for
-sale shares,
transfer to
income
statement            -        -           -            -        -      -
Changes in
minority
interest             -        -           -            -      0.0    0.0
Share of
changes
recognized
directly in
associates'
and joint
ventures'
equity               -      1.1           -          1.1        -    1.1
Other
changes              -      0.0           -          0.0        -    0.0
Acquisition
of
treasury
shares            -9.4        -           -         -9.4        -   -9.4
Tax effect of
net income
recognized
directly in
equity               -        -         0.1         -0.3        -   -0.3
Net income
recognized
directly in
equity            -9.4      1.1         0.6         -6.7      0.0   -6.7
Share-based
incentive
plan                 -      0.1           -          0.1        -    0.1
Share-based
incentive
plan,
tax effect           -      0.0           -          0.0        -    0.0
Net profit
for
the period           -    -11.4           -        -11.4      1.1  -10.2
Recognized
income and
expense for
the period        -9.4    -10.2         0.6        -17.9      1.1  -16.8
Dividends
paid                 -     -4.4           -        -16.6     -0.1  -16.7
Equity at
30 September,
2006             -11.0      8.7         0.3        306.4      2.0  308.3




                                          Attributable
                                             to equity
                               Cumulative   holders of
            Treasury Retained translation   the parent Minority  Total
EUR million   shares earnings  difference      company interest equity
Equity at
1 January,
2007           -11.0     12.3         0.1        310.1      2.2  312.2
Exchange
rate
differences        -        -        -1.9         -1.9      0.1   -1.9
Hedging of
net
investment
in foreign
entity             -        -         0.0          0.0        -    0.0
Cash flow
hedges,
recognized
in equity          -        -           -          0.5        -    0.5
Cash flow
hedges,
transfer to
income
statement          -        -           -         -0.5        -   -0.5
Changes in
minority
interest           -      0.0           -          0.0      0.0    0.0
Share of
changes
recognized
directly in
associates'
and joint
ventures'
equity             -     -0.7           -         -0.7        -   -0.7
Other
changes            -      0.0           -          0.0      0.0    0.0
Acquisition
/ disposal
of treasury
shares           0.5     -0.5           -          0.7        -    0.7
Tax effect
of net
income
recognized
directly in
equity             -        -         0.0          0.0        -    0.0
Net income
recognized
directly in
equity           0.5     -1.2        -1.9         -1.9      0.1   -1.8
Share-based
incentive
plan               -     -0.7           -         -0.7        -   -0.7
Share-based
incentive
plan,
tax effect         -      0.2           -          0.2        -    0.2
Net profit
for the
period             -     41.6           -         41.6      1.6   43.3
Recognized
income and
expense
for the
period           0.5     39.9        -1.9         39.2      1.7   40.9
Dividends
paid               -     -8.3           -         -8.3     -0.4   -8.7
Equity at
30
September,
2007           -10.6     43.9        -1.7        340.9      3.5  344.4


Cash flow statements


EUR million                               1-9/2007 1-9/2006 1-12/2006
Cash flows from operating activities
Cash flows from operating activities
before
change in net working capital                 66.5     14.4      28.9
Change in net working capital                  5.2    -49.1     -25.1
Net cash flow from operating activities       71.7    -34.6       3.7
Cash flows from investing activities
Acquisition of subsidiary shares              -0.8     -0.8      -0.8
Acquisition of associated company and
joint venture shares                          -4.0     -3.4      -3.4
Other purchases of non-current assets        -33.0    -50.6     -60.9
Proceeds from sale of non-current assets       7.3     22.6      25.2
Net cash used in investing activities        -30.4    -32.3     -39.9
Cash flow before financing                    41.3    -66.9     -36.1
Cash flows from financing activities
Changes in non-current liabilities
(increase + / decrease -)                     -1.6    -24.2     -37.5
Changes in non-current loan receivables
(increase - / decrease +)                      0.0      0.2      -1.8
Short-term financing, net (increase + /
decrease -)                                  -23.0    103.5      65.3
Dividends paid                                -8.7    -16.7     -16.7
Acquisition of own shares                        -    -11.0     -11.0
Other financing                               -0.8     -1.8       0.4
Net cash used in financing activities        -34.1     50.0      -1.3
Effect of exchange rate fluctuations          -0.2      2.0       0.5
Net change in cash and cash equivalents        7.1    -14.9     -37.0
Cash and cash equivalents at the
beginning of the period                       20.0     57.0      57.0
Cash and cash equivalents at the end of
the period                                    27.0     42.1      20.0
Net change in cash and cash equivalents        7.1    -14.9     -37.0



Key figures


                                       30.9.2007 30.9.2006 31.12.2006
EBITDA, % of net sales (1                    9.6       4.1        4.8
Operating profit/loss, % of net sales        6.1       0.3        1.0
Net result for the period attributable
to equity holders of the parent
company, % of net sales                      4.2      -1.3       -0.7
Gross capital expenditure, EUR million      33.8      58.3       68.3
Gross capital expenditure, % of net
sales                                        3.4       6.6        5.9
Equity ratio, %                             40.6      35.4       37.2
Gearing, %                                  44.2      71.2       59.5
Interest-bearing net liabilities, EUR
million                                    152.4     219.7      185.9
Invested capital, EUR million              523.8     570.1      518.1
Return on equity, %                         13.2      -3.1       -2.0
Return on equity, %, annualized             17.6      -4.2       -2.0
Return on investment, %                     12.6       0.8        2.4
Return on investment, %, annualized         16.8       1.1        2.4
Number of personnel during the period,
average                                    2,521     2,624      2,600
Number of personnel at the end of the
period                                     2,492     2,519      2,507



1) EBITDA = operating profit / loss + depreciation, amortization and
impairment


Per share data


                                       30.9.2007 30.9.2006 31.12.2006
Number of shares at the end of the
period, treasury shares excluded
(1,000)                                   55,425    55,348     55,348
Weighted average number of shares,
treasury shares excluded (1,000)          55,405    55,577     55,519
Earnings/share (EPS), EUR  (*               0.75     -0.20      -0.14
Equity attributable to equity holders
of the parent company /share, EUR           6.15      5.54       5.60
Cash flow from operations/share, EUR        1.29     -0.62       0.07
P/E ratio, price per earnings per
share of the review period                 15.99    -27.03     -48.14
Market capitalization, EUR million         665.7     305.5      375.8
Number of shares traded, % of average
number of shares                             180        69        102
Number of shares traded, (1,000)          99,773    38,438     56,797
Closing price for the share, EUR           12.01      5.52       6.79
Highest quoted price, EUR                  12.21      6.21       6.82
Lowest quoted price, EUR                    6.67      4.11       4.11
Volume weighted average quoted price,
EUR                                        10.20      5.39       5.59



(* Kemira GrowHow Oyj has not issued options or warrants or similar
instruments which would dilute the earnings per share.

Definitions of key ratios

Financial ratios

Operating profit = Profit after depreciation, amortization and
impairment

EBITDA = operating profit / loss + depreciation, amortization and
impairment

Interest-bearing net liabilities = Interest-bearing liabilities -
cash and bank - current investments

Equity = Equity attributable to equity holders of the parent company
+ minority interest

Invested capital = Balance sheet total - interest-free liabilities

Equity ratio. % = Equity x 100 / (Balance sheet total - advance
payments received)

Gearing. % = Net liabilities x 100 / Equity

Return on investments. % (ROI) = (Profit before taxes + interest
expenses + other financial expenses) x 100 / (Balance sheet total -
interest-free liabilities) (average of 1 January and end of the
review period)

Return on equity. % (ROE) = (Profit before income taxes - income
taxes) x 100 /
Equity (average of 1 January and end of the review period)

Per share data

Earnings per share (EPS) = Net result attributable to equity holders
of the parent company for the review period / Adjusted average number
of shares during the review period

Cash flow from operations = Cash flow from operations, after change
in net working capital and before capital expenditure

Cash flow from operations per share = Cash flow from operations /
Adjusted average number of shares

Equity attributable to equity holders of the parent company per share
= Equity attributable to equity holders of the parent company at the
end of the review period / Adjusted number of shares at the end of
the review period

Price per earnings per share (P/E) = Share price at the end of the
review period / Earnings per share (EPS) for the review period

Share turnover = The proportion of number of shares traded during the
review period to weighted average number of shares

Market capitalization = Number of shares at the end of the review
period x share price at the end of review period

Number of shares at the end of review period = Number of issued
shares - treasury shares

CONDENSED NOTES TO THE INTERIM REPORT

Accounting policies

These condensed consolidated interim financial statements have been
prepared in accordance with International Financial Reporting
Standard IAS 34 Interim Financial Reporting as approved by the
European Union. They do not include all of the information required
for full annual financial statements.

The accounting principles applied in these condensed interim
consolidated financial statements are the same as those applied by
Kemira GrowHow in its consolidated financial statements as at and for
the year ended 31 December 2006, with the exception of the following
new or revised or amended standards and interpretations, which have
been applied from 1 January 2007:

-          IFRS 7 Financial Instruments: Disclosures
-          Amendment to IAS 1 Presentation of Financial Statements:
Capital Disclosures
-          IFRIC 9 Reassessment of Embedded Derivatives
-          IFRIC 10 Interim Financial Reporting and Impairment-          IFRIC 11 IFRS 2 Group and Treasury Share Transactions

The new and amended standards or interpretations will mainly have an
effect on the disclosures of the consolidated financial statements.
Other new or amended standards or interpretations are not material
for Kemira GrowHow Group.

Kemira GrowHow will apply the following new or revised or amended
standards and interpretations from 1 January 2008:

-          IAS 23 (revised) Borrowing Costs
-          IFRIC 12 Service Concession Arrangements
-          IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction

Applying revised IAS 23 Borrowing Costs will change Kemira GrowHow's
accounting principles from 1 January 2008. From that date on the
borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset will be capitalized
to the acquisition cost of the asset. The capitalization will apply
mainly to property, plant and equipment.

Other new or amended standards or interpretations are not material
for Kemira GrowHow Group.

Kemira GrowHow will apply the following new or revised or amended
standards and interpretations from 1 January 2009:

-          IFRS 8 Operating Segments
-          IAS 1 (revised) Presentation of Financial Statements
-          IFRIC 13 Customer Loyalty Programmes

Applying revised IAS 1 standard will change the presentation of
income statement, balance sheet and statement of changes in equity in
the financial statements.

Kemira GrowHow estimates that applying IFRS 8 as such will not have
any material effect on the financial information of Kemira GrowHow.
However, Kemira GrowHow's segments will change from 1 January 2008 to
correspond Yara's segments. For this reason Kemira GrowHow's
financial information will change materially from 1 January 2008.

Other new or amended standards or interpretations are not material
for Kemira GrowHow Group.

Changes in accounting principles due to change in control

Because Kemira GrowHow became Yara's subsidiary in early October
2007, Kemira GrowHow's accounting principles will be changed during
the fourth quarter to correspond with Yara's accounting principles.
The most important change will be that actuarial gains and losses
arising from the defined benefit pension plans will be recorded
directly to equity instead of using the corridor method. This change
will increase Kemira GrowHow's equity. In addition, the defined
benefit plan assets and liabilities will change. The so called net
method will be used instead of gross method in recognition of carbon
dioxide emission rights. In addition, certain income statement items
will be reclassified, which will change net sales, operating result
and financial items. Result before taxes will not change materially.

Contingent liabilities


EUR million                  30.9.2007 30.9.2006 31.12.2006
Mortgages                         27.0      24.5       27.0
Assets pledged
On behalf of own commitments         -       2.4        2.3
Guarantees
On behalf of others (*             0.3      30.7       29.5
Operating lease commitments
Maturity within one year           2.4       2.7        9.3
Maturity after one year           32.0      35.8       27.7



(* EUR 0.0 (30.1) million of this obligation is related to the
guarantees for which Kemira Oyj has issued a counter indemnity to
Kemira GrowHow Oyj.

The Finnish Supreme Administrative Court gave a decision in April
2004 on Kemira GrowHow's appeal concerning the waste management
permit for Kemira GrowHow's Siilinjärvi plant in Finland. Although
the Court's decision was negative, the opinion of the management is
that this will not have an impact on Kemira GrowHow's financial
position. A new environmental and water management permit was issued
in October 2006 to Siilinjärvi mine and plants. The enforcement of
the permit is pending due to appeal. Kemira GrowHow estimates that
the new environmental permit will not create any new material
obligations.

Derivative instruments


                              30.9.         30.9.        31.12.
                               2007          2006          2006
                            Nominal Fair  Nominal Fair  Nominal Fair
EUR million                 value   value value   value value   value
Currency derivatives
Forward contracts              65.9  -0.2   150.6   0.7   181.9  -2.4
of which hedging net
investment in foreign
entity                          1.2  -0.1     1.3   0.2     1.2  -0.1
Currency options
Bought                         98.1   0.1    98.4   0.7    61.7   0.7
Sold                           28.1  -0.5    91.0  -0.2    61.7  -0.2
Interest rate derivatives
Interest rate swaps            70.0   1.5    70.0   1.3    70.0   1.7
Interest rate options
Bought                         10.0   0.3    10.0   0.2    10.0   0.3
Sold                           10.0   0.0    10.0   0.0    10.0   0.0
Commodity derivatives
Swaps                         215.3 -16.9   133.4   0.5   136.2  -7.9



Derivative instruments are used only for hedging purposes. Nominal
values of derivative instruments do not necessarily correspond with
the actual cash flows between the counterparties and do not therefore
give a fair view of the risk position of the Group. The fair values
are based on market valuation on the date of reporting.

Segment information

Kemira GrowHow's operations are organized under two strategic
business units: Crop Cultivation and Industrial Solutions. The
Industrial Solutions business unit has strong synergies with the Crop
Cultivation business unit in production and sourcing.

The Crop Cultivation strategic business unit produces and markets a
broad range of fertilizers and other related products and services
for agriculture, horticulture and home gardening in selected markets
in Northern, Western and Eastern Europe and overseas. Kemira GrowHow
has a significant market position in fertilizer business in Finland,
Denmark, the Baltic countries, the Benelux countries, France and the
United Kingdom.

The Industrial Solutions strategic business unit provides high
performance products and innovative solutions, such as feed
phosphates and feed acidifiers, a range of nitrogen-based chemicals
and phosphoric acid. The Industrial Solutions business unit focuses
on selected customer segments that, in addition to the animal feed
industry, include the chemical, pharmaceutical, metal, electronics
and food industries. Industrial Solutions is one of the leading
global suppliers of inorganic feed phosphates having sales in more
than 80 countries. Kemira GrowHow's Process Chemicals business is one
of the two biggest suppliers in the Benelux countries, the United
Kingdom, Finland and Denmark.

Kemira GrowHow's primary segment is business segment. Kemira GrowHow
Group's business segments are Crop Cultivation and Industrial
Solutions strategic business units. Segment information is presented
in the tables below.

Kemira GrowHow's segments will change from 1 January 2008 to
correspond Yara's segments.

Net sales by segment


EUR million
                       7-9/  7-9/    1-9/  1-9/   1-12/
                       2007  2006    2007  2006    2006
Crop Cultivation
External sales        243.8 238.5   780.8 688.0   894.3
Internal sales          0.3   0.2     1.8   0.6     0.9
Total                 244.1 238.7   782.5 688.6   895.3
Industrial Solutions
External sales         76.6  68.1   221.7 195.8   271.9
Internal sales          9.3   8.0    24.9  28.3    37.1
Total                  85.9  76.0   246.6 224.1   309.0
Internal eliminations  -9.6  -8.2   -26.7 -28.9   -38.0
Kemira GrowHow total  320.4 306.6 1,002.4 883.8 1,166.2


Result by segment


                                           7-9/ 7-9/  1-9/ 1-9/ 1-12/
EUR million                                2007 2006  2007 2006  2006
Operating profit / loss
Crop Cultivation                           19.3 13.3  49.7 -5.8  -0.4
Industrial Solutions                        9.3  6.3  23.6 13.6  19.9
Segments total                             28.6 19.5  73.3  7.8  19.5
Corporate centre and other                 -6.8 -0.4 -12.6 -5.2  -8.4
Operating profit
/ loss total                               21.8 19.1  60.7  2.6  11.1
Share of joint ventures' and associates'
result
Crop Cultivation                            0.8 -1.0   3.0  0.5   0.1
Industrial Solutions                        0.0  0.0   0.1 -0.2   0.0
Share of joint
ventures' and
associates' result total                    0.8 -1.0   3.0  0.3   0.1
Total segment result
Crop Cultivation                           20.1 12.3  52.6 -5.3  -0.3
Industrial Solutions                        9.2  6.3  23.7 13.4  19.9
Segments total                             29.4 18.6  76.3  8.2  19.7
Corporate centre and other                 -6.8 -0.4 -12.6 -5.2  -8.4
Total segment result                       22.5 18.1  63.7  3.0  11.3
Financial income and expenses              -1.2 -3.0  -6.8 -8.0 -11.0
Result before
income taxes                               21.4 15.1  56.9 -5.0   0.3



Depreciation, amortization and impairment
EUR million

                                            7-9/ 7-9/ 1-9/ 1-9/ 1-12/
                                            2007 2006 2007 2006  2006
Crop Cultivation                             6.7  8.4 24.6 25.2  33.4
Industrial Solutions                         2.6  2.6  8.1  8.0  10.6
Segments total                               9.3 11.1 32.7 33.2  44.0
Corporate centre and other                   0.7  0.1  2.5  0.3   0.4
Total depreciation, amortization and
impairment                                  10.0 11.2 35.1 33.5  44.4



Assets
EUR million


                                      9/2007 9/2006 12/2006
Crop Cultivation                       570.4  584.8   575.9
Industrial Solutions                   193.7  191.0   193.6
Corporate centre and unallocated        36.8   23.7    25.1
Eliminations                            -7.9   -6.5    -6.7
Interest-bearing receivables             2.6    8.0     3.2
Tax receivables                          0.4    0.5     0.6
Deferred tax assets                     28.1   31.1    33.1
Cash and bank and current investments   27.0   42.1    20.0
Total assets                           851.3  874.6   844.7



Liabilities
EUR million

                                 9/2007 9/2006 12/2006
Crop Cultivation                  245.6  235.4   253.5
Industrial Solutions               59.9   50.3    55.6
Corporate centre and unallocated    6.7    5.9     7.1
Eliminations                       -3.5   -7.6   -11.9
Interest-bearing liabilities      179.4  261.7   205.9
Tax liabilities                     2.3    3.9     6.3
Deferred tax liabilities           16.4   16.5    15.9
Total liabilities                 506.9  566.3   532.5



Gross capital expenditure
EUR million


                     1-9/ 1-9/ 1-12/
                     2007 2006  2006
Crop Cultivation     20.5 45.4  53.2
Industrial Solutions 13.3 12.9  15.2
Corporate centre and
unallocated             -    -     -
Total                33.8 58.3  68.3



Quarterly development by strategic business unit

EUR million
                       7-9/  4-6/  1-3/ 10-12/  7-9/  4-6/  1-3/
Net sales              2007  2007  2007   2006  2006  2006  2006
Crop Cultivation
External sales        243.8 261.6 275.4  206.4 238.5 240.7 208.7
Internal sales          0.3   0.2   1.3    0.3   0.2   0.2   0.2
Total                 244.1 261.8 276.7  206.7 238.7 240.9 208.9
Industrial Solutions
External sales         76.6  71.0  74.1   76.1  68.1  63.5  64.2
Internal sales          9.3   8.8   6.8    8.8   8.0   8.7  11.6
Total                  85.9  79.8  80.9   84.9  76.0  72.2  75.8
Internal eliminations  -9.6  -9.0  -8.1   -9.1  -8.2  -8.9 -11.8
Kemira GrowHow total  320.4 332.6 349.5  282.5 306.6 304.2 272.9





                            7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/  1-3/
Operating profit/loss       2007 2007 2007   2006 2006 2006  2006
Crop Cultivation            19.3 14.1 16.3    5.4 13.3 -0.7 -18.4
Industrial Solutions         9.3  7.1  7.2    6.3  6.3  6.4   0.9
Segments total              28.6 21.2 23.5   11.7 19.5  5.7 -17.4
Corporate centre and other  -6.8 -3.6 -2.1   -3.2 -0.5 -3.1  -1.7
Operating profit/loss total 21.8 17.6 21.4    8.5 19.1  2.6 -19.1



Non-recurring items

Non-recurring items include mainly capital gains and losses from sale
of assets, impairment losses, releases of provisions and
restructuring expenses.


Non-recurring items, net, EUR million 1 - 3 4 - 6 7 - 9 10 - 12 2007
Crop Cultivation                        3.0   1.2   4.3          8.6
Industrial Solutions                    0.6   1.2   1.1          2.9
Other                                     -   0.2  -1.2         -1.0
Total                                   3.6   2.6   4.2         10.4




Non-recurring items, net, EUR million 1 - 3 4 - 6 7 - 9 10 - 12 2006
Crop Cultivation                        1.4   3.7   6.0     1.2 12.4
Industrial Solutions                   -0.1   0.0   0.3     0.2  0.4
Other                                   0.0  -1.5   0.0    -1.7 -3.1
Total                                   1.3   2.3   6.3    -0.3  9.6



Property, plant and equipment

EUR million


                                                     1-9/  1-9/ 1-12/
Changes in property, plant and equipment             2007  2006  2006
Carrying amount at beginning of the period          306.4 318.1 318.1
Additions                                            31.8  25.6  35.2
Disposals                                            -1.8  -7.6  -6.9
Depreciations                                       -30.3 -31.0 -41.0
Impairment losses and reversals of impairment
losses                                               -1.2  -0.1  -0.2
Reclassification and other changes                   -0.1   0.0  -0.3
Exchange differences                                 -3.1   0.1   1.4
Carrying amount at end of the period                301.7 305.1 306.4


The amount of contractual commitments for the acquisition of
property, plant and equipment were EUR 17.8 million at the end of
September 2007.

Impairment losses of tangible assets are related mainly to property
which was damaged in the fire at Tertre plant.

Related party transactions

Kemira GrowHow Group's related parties include the parent company,
subsidiaries, associated companies and joint ventures. Related
parties also include the members of the Board of Directors and the
Group's Management Team, the CEO and his deputy and their family
members. Kemira GrowHow's Finnish pension foundations and funds are
legal units of their own and they manage part of the pension assets
of the Group's personnel in Finland.

Kemira GrowHow follows the same commercial terms in transactions with
associated companies, joint ventures and other related parties as
with third parties.

During the review period Kemira GrowHow's related party transactions
were mainly sales to associated companies and joint ventures. During
the review period there were no related party transactions whose
terms would differ from the terms in transactions with third parties.

Yara Nederland B.V., a fully-owned subsidiary of Yara International
ASA, acquired 30.05 percent of shares and votes in Kemira GrowHow Oyj
from the Government of Finland. Based on its ownership in Kemira
GrowHow, Yara would have been a related party to Kemira GrowHow.
However, pursuant to article 7(2)(b) of the EC Council Regulation EC
139/2004 an acquirer is not allowed to exercise the voting rights
attached to the purchased securities during the proceedings of the
European Commission. Because Yara did not use the voting rights
related to the shares purchased in connection with the share purchase
until the European Commission had approved the share purchase, Yara
was not considered a related party to Kemira GrowHow until it had
received the approval. The approval was given on 21 September 2007.
Based on this, Yara would have been a related party to Kemira GrowHow
from 21 September 2007. Transactions with companies in Yara Group
during 21 - 30 September 2007 are not material and thus they are not
presented in this interim report.

The ownership of the shares acquired through the tender offer was
transferred to Yara on 9 October 2007. For this reason the companies
in Yara Group belong to the same group with Kemira GrowHow from 9
October 2007 and are thus related parties of Kemira GrowHow.
Based on the 2004 share-based incentive plan, Kemira GrowHow Oyj
transferred in March own shares to persons who are considered to be
related parties. The shares were transferred to the CEO (12.249
shares), the deputy CEO (9.187 shares) and other members of the
Management Board (in total 25.262 shares).
As a result of the completion of Yara's tender offer, a maximum
reward will be paid for the 2007 performance period of the
share-based incentive plan of Kemira GrowHow. The reward will be paid
this year in accordance with the terms of the plan. The expenses
arising from the plan were EUR 4.6 million in January - September, of
which EUR 3.3 million was recognized in the third quarter. Also the
share-based incentive plan for the 2005 reward period will be paid in
2007. Both plans will be settled in cash.
Transactions with associated companies and joint ventures
EUR million

                                                     1-9/  1-9/ 1-12/
                                                     2007  2006 2006

Sales to associated companies and joint ventures     108.6 91.9 136.3
Purchases from associated companies and joint
ventures                                               5.8  7.2   9.3
Other expenses charged by associated companies and
joint ventures                                         4.3  2.6   4.0
Other income from associated companies and joint
ventures                                               0.1  0.1   0.1
Interest income from associated companies and joint
ventures                                               0.2  0.4   0.5
Interest expenses to associated companies and joint
ventures                                               0.0  0.0   0.0
Dividend income from associated companies and joint
ventures                                               0.2  0.3   0.3

Property, plant and equipment sold to associated
companies and joint ventures, sales price                -  0.6   0.6



Associated company and joint venture balances
EUR million                        1-9/ 1-9/ 1-12/
                            2007 2006 2006
Receivables
  Loan receivables           6.3  9.7   6.7
  Accounts receivable       17.8 21.2  19.7
  Other receivables          0.6  0.1   0.1

Liabilities
  Accounts payable           0.6  1.6   1.2
  Other current liabilities  0.0  0.7   0.3

Interim Report Q3/2007