2007-10-31 08:04:48 CET

2007-10-31 08:04:48 CET


REGULATED INFORMATION

English
Kemira Oyj - Quarterly report

KEMIRA GROUP INTERIM REPORT FOR JANUARY-SEPTEMBER 2007: KEMIRA S REVENUE UP BY 12% IN Q3



(Stock Exchange Release)

- Revenue in July-September: EUR 729.5 million (Q3/2006: EUR 652.6
million), up 12%.
- Operating profit: EUR 79.5 million (EUR 75.1 million), up 6%; up
12% when excluding the effect of non-recurring items.
- Earnings per share: EUR 0.43 (EUR 0.37), up 16%.
- Full-year revenue, operating profit, and earnings per share are
expected to show an increase from their 2006 levels.

KEY FIGURES AND RATIOS


EUR million      7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006**
                                   %                             %
REVENUE             729.5    652.6     12  2 155.8  1 853.0     16     2 522.5
EBITDA              113.0    105.6      7    285.5    262.0      9       317.2
EBITDA, %           15.5%    16.2%           13.2%    14.1%              12.6%
OPERATING            79.5     75.1      6    186.0    172.1      8       193.7
PROFIT
Operating           10.9%    11.5%            8.6%     9.3%               7.7%
profit, %
Operating
profit,
excluding
non-recurring
items                65.8     59.0     12    170.5    141.9     20       170.5
Financial
income and
expenses            -11.8    -11.6           -36.6    -24.5              -37.2
PROFIT BEFORE        68.3     63.8      7    151.3    146.4      3       154.2
TAX
Profit before        9.4%     9.8%            7.0%     7.9%               6.1%
tax, %
NET PROFIT           52.9     45.9     15    113.5    104.5      9       112.2
EPS, EUR             0.43     0.37     16     0.91     0.84      8        0.90
Capital           2 018.6  1 832.8         2 018.9  1 832.8            1 876.6
employed*
ROCE, %*            10.3%    11.2%           10.3%    11.2%              10.2%
Cash flow
after
investments,
excluding
acquisitions         47.7     73.0           -76.2     75.5              155.0
Personnel at       10 048    9 119          10 048    9 119              9 327
period-end

* 12-month rolling average
** Prior year correction included (see page 8)

REVENUE AND OPERATING PROFIT FOR JULY-SEPTEMBER

Kemira Group's revenue for July-September 2007 rose by 12% year on
year, to EUR 729.5 million (Q3/2006: EUR 652.6 million). Acquisitions
contributed to EUR 83.1 million of the growth in revenue while
divestments decreased revenue by EUR 6.4 million. Organic growth in
local currencies was 1%. The currency effect had a EUR 9 million, or
1%, negative impact on revenue.

Revenue by business area:


EUR million             7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006
Kemira Pulp&Paper          253.1    261.9    768.5    729.3     993.3
Kemira Water               187.4    101.7    542.5    296.1     467.6
Kemira Specialty           109.8    112.8    323.9    339.0     456.2
Kemira Coatings            182.3    164.6    506.8    453.5     562.8
Other, including            -3.1     11.6     14.1     35.1      42.6
eliminations
Total                      729.5    652.6  2 155.8   1853.0    2522.5



Operating profit for July-September grew by 6%, to EUR 79.5 million.
Operating profit included non-recurring income of EUR 13.7 million
(EUR 75.1 million, including EUR 16.1 million in non-recurring
income). Excluding the effect of non-recurring items, operating
profit increased by 12%. The weakened US dollar had a negative impact
on both revenue and operating profit.

Operating profit by business area:


EUR million       7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006
Kemira Pulp&Paper     23.6     24.3     70.0     70.7      90.8
Kemira Water          14.9      9.0     39.8     25.0      35.3
Kemira Specialty      10.0     11.7     27.4     34.7      45.8
Kemira Coatings       38.9     39.0     79.0     73.6      72.1
Other                 -7.9     -8.9    -30.1    -31.9     -50.3
Total                 79.5     75.1    186.0    172.1     193.7


Non-recurring items included in operating profit:


EUR  million      7-9/2007 7-9/2006 1-9/2007 1-9/2006 1-12/2006
Kemira Pulp&Paper      1.2      3.0      2.5     10.6      11.0
Kemira Water             -        -        -      0.3      -0.2
Kemira Specialty       1.3        -      1.3      2.1       3.6
Kemira Coatings       11.2     13.1     11.2     16.4      16.4
Other                    -        -      0.5      0.8      -7.6
Total                 13.7     16.1     15.5     30.2      23.2


Profit before tax came to EUR 68.3 million (63.8) and net profit
totaled EUR 52.9 million (45.9). The Group's full-year tax rate is
expected to fall to 25 per cent, which is why less tax has been
recorded for the third quarter than for previous quarters.

REVENUE AND OPERATING PROFIT FOR JANUARY-SEPTEMBER

In January-September 2007, Kemira Group's revenue rose by 16% year on
year, to EUR 2,155.8 million (1,853.0). This growth can be primarily
attributed to acquisitions, which contributed EUR 301.7 million to
revenue growth, while divestments depressed revenue by EUR 22.4
million. Organic growth in local currencies was 3%. The currency
effect had a 2% negative impact on revenue.

Operating profit for January-September grew by 8%, to EUR 186.0
million (172.1). Operating profit includes non-recurring items, with
their net effect on operating profit amounting to EUR +15.5 million,
compared with the EUR +30.2 million reported a year ago. Excluding
the effect of non-recurring items, operating profit increased by 20%.
Operating profit as a percentage, excluding non-recurring items, rose
to 7.9% (7.7).

RESEARCH AND DEVELOPMENT

In January-September, reported research and development expenditure
totaled EUR 46.4 million (38.0) accounting for 2.2% of revenue
(2.1%).

CAPITAL EXPENDITURE
Gross capital expenditure, excluding acquisitions, amounted to
EUR 178.7 million (96.8) in January-September. The largest ongoing
investments involve a chemical plant under construction at the site
of the Botnia pulp mill in Uruguay (EUR 32.9 million), a paint
factory under construction in the Stockholm area (EUR 11.7 million),
the introduction of a new ERP system for the entire Group (EUR 15.9
million), and the environmental investment in Pori (EUR 11.2
million).  Maintenance investments represented 26% of capital
expenditure, excluding acquisitions.

In the January-September period, Group depreciation came to
EUR 99.5 million (89.9).

Gross capital expenditure, including acquisitions worth
EUR 47.2 million (108.1), totaled EUR 225.9 million (204.9). Cash
flow from the sale of assets, including the repayment of Kemapco
loans, was EUR 11.4 million negative (proceeds of 64.2). The Group's
net capital expenditure totaled EUR 237.3 million.

FINANCIAL POSITION AND CASH FLOWS

In January-September, the Group reported positive cash flows of EUR
113.9 million from operating activities (108.1). The Group generated
a negative net cash flow of EUR 237.3 million from investing
activities, of which acquisitions accounted for an outflow of EUR
-47.2 million. Kemira showed a free cash flow of EUR -123.4 million
(-32.6).

On September 30, 2007, the Group's net liabilities stood at EUR 998.9
million (December 31, 2006: EUR 827.4 million), this growth being
primarily due to investments and acquisitions carried out during the
period.

At the period-end, interest-bearing liabilities stood at EUR 1,059.1
million. Fixed-rate loans accounted for roughly 24% of total
interest-bearing net loans. The average interest rate on the Group's
interest-bearing liabilities was 5.15%. The duration of the Group's
interest-bearing loan portfolio on September 30, 2007, was 14 months
(December 31, 2006: 16 months).

The amount of the revolving credit facility that falls due in 2012,
in use on September 30, 2007, was EUR 168.8 million.

At the end of September, the equity ratio stood at 39% (December 31,
2006: 39%), while gearing was 88% (December 31, 2006: 76%).

In the January-September period, net financial expenses increased to
EUR 36.6 million (24.5), due to increases in loans raised and higher
market interest rates.

In October 2006, Kemira signed a credit facility enabling six Group
companies to sell certain account receivables to a finance company.
The related credit risk transfers to the finance company and the
receivables are derecognized from the Group companies' balance
sheets. The amount of outstanding sold receivables on September 30,
2007, was EUR 23 million (December 31, 2006: EUR 15.7 million).

The Group's most important exchange rate risk arises from USD
denominated exports from the euro area. Approximately 70% of the
exchange rate risk, equivalent annually to EUR 50 million, due to
exposure to the US dollar, was hedged during the quarter. In
addition, the company is exposed to a USD risk when USD denominated
items are converted into euro in the financial statements. Revenue
for Kemira's US-based business accounted for 20% of the Group's
revenue.

HUMAN RESOURCES

The number of Group employees totaled 10,048 on September 30
(December 31, 2006: 9,327)

KEMIRA PULP&PAPER

Kemira Pulp&Paper is the world's leading supplier of pulp and paper
chemicals, its extensive solutions spanning the pulp and paper
industry's value chain from pulp to paper coating.


EUR million   7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006
                                     %                   %
REVENUE          253.1    261.9     -3    768.5    729.3      5     993.3
EBITDA            35.7     36.2     -1    106.1    105.1      1     137.1
EBITDA, %        14.1%    13.8%           13.8%    14.4%            13.8%
OPERATING         23.6     24.3     -3     70.0     70.7     -1      90.8
PROFIT
Operating         9.3%     9.3%            9.1%     9.7%             9.1%
profit, %
Operating
profit,
excluding
non-recurring
items             22.4     21.3      5     67.5     60.1     12      79.8
Capital          804.1    813.7           804.1    813.7            819.5
employed *
ROCE, %*         11.2%    11.2%           11.2%    11.2%            11.0%
Capital
expenditure,
excluding
acquisitions      19.2     15.1            62.3     47.1             77.6
Cash flow
after
investments,
excluding
acquisitions      11.5     18.8            -7.3     39.9             65.1
Personnel at     2 334    2 306           2 334    2 306            2 304
period-end

* 12-month rolling average

In July-September, Kemira Pulp&Paper reported revenue of EUR 253.1
million (261.9). This decrease in revenue was primarily due to the
downtime in the pulp mills in Finland during the report period, and
the raw material delivery problems experienced at the Maitland
hydrogen peroxide plant, which the supplier was able to fix at the
end of the period. As a result, there was no organic growth in the
period. Furthermore, the exchange rate of the US dollar decreased
revenue by 2%.

Operating profit for the period totaled EUR 23.6 million (24.3),
including EUR 1.2 million in non-recurring income. In 2006, this item
amounted to EUR 3.0 million. Operating costs during the construction
of the chemical plant in Uruguay had a negative effect, because the
plant was not introduced for production use during the period. The
weakened US dollar had a negative effect on both revenue and
operating profit. Excluding the effect of non-recurring items,
operating profit totaled EUR 22.4 million (21.3). Efforts made to
improve profitability raised operating profit as a percentage of
revenue to 8.8% (8.1), excluding non-recurring items.

In August, Finnish Chemicals Oy, a subsidiary of the Kemira Group,
received an EU Commission Statement of Objections concerning the
selling of sodium chlorate, with regard to alleged antitrust
activities during 1994-2000.  Kemira Oyj acquired Finnish Chemicals
Oy in 2005. Finnish Chemicals has given its reply to the Statement of
Objections.

In January-September, Kemira Pulp&Paper's revenue grew by 5%, to
EUR 768.5 million (729.3) Organic growth in local currencies was 3%.
The currency effect had a 3% negative impact on revenue. Revenue was
also lowered by the Korean hydrogen peroxide business, divested in
2006. Reported operating profit for January-September 2007 was EUR
70.0 million (70.7), including EUR 2.5 million (10.6) in
non-recurring income. Boosted by efficiency-enhancing measures and
the successful integration work performed after acquisitions,
operating profit excluding the effect of non-recurring items rose by
12%. Excluding the effect of non-recurring items, operating profit as
a percentage of revenue rose to 8.8% (8.2).

KEMIRA WATER

Kemira Water is the world's leading supplier of inorganic coagulants,
and ranks third in water treatment polymers. Kemira Water offers
customized water treatment and sludge treatment solutions to
municipal and private water treatment plants and industry.


EUR million   7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006
                                     %                   %
REVENUE          187.4    101.7     84    542.5    296.1     83     467.6
EBITDA            22.1     12.9     71     60.9     37.0     65      53.4
EBITDA, %        11.8%    12.6%           11.2%    12.5%            11.4%
OPERATING         14.9      9.0     66     39.8     25.0     59      35.3
PROFIT
Operating         7.9%     8.8%            7.3%     8.4%             7.5%
profit, %
Operating
profit,
excluding
non-recurring
items             14.9      9.0     65     39.8     24.7     61      35.5
Capital          423.4    231.7           423.4    231.7            269.2
employed *
ROCE, %*         11.9%    14.2%           11.9%    14.2%            13.4%
Capital           10.8      3.7            29.6     10.7             19.4
expenditure,
excluding
acquisitions
Cash flow         -6.9      5.8            -1.2      6.8             26.7
after
investments,
excluding
acquisitions
Personnel at     2 245    1 501           2 245    1 501            1 846
period-end

* 12-month rolling average

In July-September, Kemira Water's revenue improved by 84% year on
year, to EUR 187.4 million (101.7). The acquisition of Cytec,
Galvatek, and Parcon in October 2006 increased revenue by a total of
EUR 78.0 million. Organic growth in local currencies was 11%. The
currency effect had a 3% negative impact on revenue.

During the July-September period, operating profit grew by 66% to EUR
14.9 million (9.0). Raw material prices developed moderately during
the period.

In the beginning of October, Kemira announced it had agreed to
acquire Nheel Química Ltda, Brazilia's leading water treatment
chemicals company. With this acquisition Kemira, will strengthen its
position in the Brazilian and Latin American water treatment market.
Nheel Química's production plant is located in Rio Claro, Sao Paulo
state. The plant produces the full range of coagulants, which are
mainly used for the treatment of drinking water and wastewater. In
2006, Nheel Química's revenue was around EUR 24 million. This
acquisition fits well with Kemira's strategy to enhance its position
in the fast growing emerging markets. Anti-trust approval and the
fulfillment of other terms and conditions are required to close the
deal.

In the beginning of October, the Finnish city of Oulu introduced a
sludge treatment solution based on Kemira's Kemicond concept.
Kemicond is a patented sludge treatment solution developed by Kemira.
The solution enables a considerable reduction in sludge volume, which
generates significant cost savings to Kemira's customers.

In January-September, Kemira Water reported year-on-year revenue
growth of 83%, to EUR 542.5 million (296.1). Organic growth in the
January-September period in local currencies was 7%. The currency
effect had a 3% negative impact on revenue. Operating profit grew by
59%, to EUR 39.8 million (25.0). Operating profit as a percentage of
revenue fell from 8.4% to 7.3%, due to the lower profitability of the
acquired Cytec water treatment chemicals business compared to that ofKemira's other water treatment chemicals business.


KEMIRA SPECIALTY

Kemira Specialty is the leading supplier of specialty chemicals in
selected customer segments, serving customers in a wide array of
industries, such as the cosmetics, printing ink, food, feed and
detergent industries, through its customer-driven solutions.


EUR million   7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006
                                     %                   %
REVENUE          109.8    112.8     -3    323.9    339.0     -4     456.2
EBITDA            17.9     19.6     -9     50.9     58.0    -12      77.0
EBITDA, %        16.3%    17.4%           15.7%    17.1%            16.9%
OPERATING         10.0     11.7    -15     27.4     34.7    -21      45.8
PROFIT
Operating         9.1%    10.4%            8.5%    10.2%            10.0%
profit, %
Operating
profit,
excluding
non-recurring
items              8.7     11.7    -26     26.1     32.6    -20      42.2
Capital          439.6    457.1           439.6    457.1            451.6
employed *
ROCE, %*          8.8%    11.1%            8.8%    11.1%            10.1%
Capital
expenditure,
excluding
acquisitions      11.0      9.3            35.6     19.6             30.8
Cash flow
after
investments,
excluding
acquisitions      12.4      6.0           -12.0     26.0             53.6
Personnel at     1 039    1 042           1 039    1 042            1 011
period-end

* 12-month rolling average

In July-September, Kemira Specialty's revenue totaled EUR 109.8
million (112.8). Competition in the titanium dioxide market remained
fierce and the average sales price for titanium dioxide was clearly
lower than in the previous year. Due to development of the US housing
market, American companies have increased the export of titanium
dioxide to Europe, which has increased the price competition. In
addition, the development of the US dollar has further improved the
competitive position of American companies in Europe. Downtime in the
production of formic acid due to the expansion of the production line
reduced the formic acid sales volume. Due to the decrease in sales
prices and sales volumes, organic growth in the period was negative.
Furthermore, the currency effect had a 1% negative impact on
revenue.

Operating profit in July-September came to EUR 10.0 million (11.7),
including EUR 1.3 million in non-recurring income, chiefly due to
lower titanium dioxide sales prices and the weak US dollar.

In August, Kemira announced that it had concluded the evaluation of
ownership alternatives for its business unit Pigments. Based on the
evaluation, Kemira will remain the owner of Pigments and continue to
run it as part of the Kemira Specialty business area along with the
ChemSolutions and Chemidet businesses. The ChemSolutions business
unit was not integrated into Kemira Pulp&Paper as stated earlier, but
will continue in the Kemira Specialty business area. The preliminary
outcome of the evaluation process showed that the market value of the
Pigments business unit in the current business and financial
environment did not correspond to the expected future value of the
business. A decision was therefore taken to halt the evaluation
process and concentrate on improving the profitability and cash flow
of Pigments. The process to assess different ownership alternatives
continues for the Chemidet business unit.

In the beginning of October, Kemira's subsidiary Kemira Pigments Oy
announced it had initiated negotiations under the Act on
Codetermination within Undertakings with its personnel. The company
is pursuing annual savings of around EUR 4.5 million. The objective
is to generate these savings through structural reorganization and
operational efficiency enhancement. To generate the targeted savings,
the company may need to reduce its personnel by 70 employees. The
Pori facility currently employs approximately 650 personnel.

In January-September, Kemira Specialty's revenue fell to EUR 323.9
million (339.0). Operating profit was EUR 27.4 million (34.7),
including EUR 1.3 million (2.1) in non-recurring income.


KEMIRA COATINGS

Kemira Coatings is the leading supplier of paints in Northern and
Eastern Europe, providing consumers and professionals with branded
products. Its products consist of decorative paints and coatings for
the woodworking and metal industries.


EUR million   7-9/2007 7-9/2006 Change 1-9/2007 1-9/2006 Change 1-12/2006
                                     %                   %
REVENUE          182.3    164.6     11    506.8    453.5     12     562.8
EBITDA            43.1     43.2      0     91.6     86.0      7      88.9
EBITDA, %        23.6%    26.2%           18.1%    19.0%            15.8%
OPERATING         38.9     39.0      0     79.0     73.6      7      72.1
PROFIT
Operating        21.3%    23.7%           15.6%    16.2%            12.8%
profit, %
Operating
profit,
excluding
non-recurring
items             27.7     25.9      7     67.8     57.2     19      55.7
Capital          306.5    303.3           306.5    303.3            310.5
employed *
ROCE, %*         25.8%    26.9%           25.8%    26.9%            23.7%
Capital
expenditure,
excluding
acquisitions      10.7      4.9            32.9     12.2             22.5
Cash flow
after
investments,
excluding
acquisitions      58.0     67.8            34.1     51.6             71.2
Personnel at     3 889    3 587           3 889    3 587            3 494
period-end

* 12-month rolling average

In July-September, Kemira Coatings increased its revenue by 11% to
EUR 182.3 million (164.6). Sales development was favorable in all
market areas, particularly in Russia and other CIS countries. Organic
growth was 8%. Revenue was further boosted by the acquisition of two
Russian industrial coatings companies completed in April 2007, and
the launch of operations of the Beijing-based sales company in June.

Operating profit for July-September 2007 was EUR 38.9 million (39.0),
including EUR 11.2 million (13.1) in non-recurring income. Excluding
the effect of non-recurring items, operating profit increased by 7%
year on year.

In August, Kemira announced that it was pursuing its strategy and
strengthening its position in the Russian coatings markets. Kemira
Coatings (Tikkurila) decided to build a logistics and customer
service center in Moscow, in order to be able to respond to the
challenges presented by powerful growth and demand. The value of the
investment is approximately EUR 20 million. The center will be built
in Mytish, Moscow, and its opening is scheduled for the summer of
2008. Kemira Coatings has been exporting paints and coatings to
Russia for decades under the Tikkurila brand name. The company also
has local production in the country, totaling six paint factories.
These products are sold under brands such as Finncolor and Teks. The
objective of the new logistics and customer service center is to
bring about a considerable improvement in Tikkurila's customer
services in the rapidly growing market in the Moscow area. The center
will also include facilities for comprehensive customer training,
which is an essential part of Kemira Coatings' marketing.

In August, Alcro-Beckers AB, part of Kemira's paints and coatings
business, announced its intention to sell its 50% stake in the
Swedish filler producer, Scanspac, to Gyproc AB, part of
Saint-Gobain. Scanspac's revenue in 2006 totaled approximately SEK
241 million (EUR 26 million). Scanspac is the leading filler producer
in the Nordic area with production units in Glanshammar and Sala in
Sweden. Since Alcro-Beckers AB focuses on paint manufacturing, this
divestment supports the unit's strategy. The divestment was completed
at the end of September.

Alcro-Beckers AB, part of the Kemira Coatings business, is building a
new paint factory in Nykvarn, south of Stockholm, in connection with
the company's logistics center. Production in the new factory will be
launched during the remainder of the year. Alcro-Beckers has been
manufacturing paint in the Lövholmen area in central Stockholm since
1902. It sold its production facility in Stockholm city center last
year and will relocate its production operations to Nykvarn in early
2008.

In January-September, Kemira Coatings' revenue went up by 12%, to
EUR 506.8 million (453.5), with organic growth at 9%. Operating
profit rose by 7% to EUR 79.0 million (73.6), including EUR 11.2
million (16.4) in non-recurring income. Excluding the effect of
non-recurring items, operating profit increased by 19%. Operating
profit as a percentage of revenue increased from 12.6 to 13.4%,
excluding non-recurring items. The increase in operating profit was
due to favorable sales performance and efficient cost management.


OTHER OPERATIONS

Other operations include corporate expenses not charged to the
business areas, such as some research and development costs and the
costs of the Kemira Corporate Center. During the current year, the
Group is particularly investing in harmonizing and enhancing its
purchasing and logistics processes, and the ERP system and IT
services. Development programs and investments of several million
euro are aimed at generating cost savings in the forthcoming years as
well as increasing agility and flexibility in order to respond to
changes in the business environment.

Other operations also include the water-soluble fertilizers unit,
which is not part of Kemira's core business operations. In February,
Kemira sold its shareholding (50%) in Kemira Arab Potash Company Ltd
(Kemapco), part of Water Soluble, to Arab Potash Company Ltd (APC).
Kemira will continue selling potassium nitrate, produced by the
Jordanian plant, for a one-year transition period.

During the first quarter of the current year, an error was detected
and reported in the calculation of the provision recognized in 2006
due to the closure of the Water Soluble unit. This prior year's error
was corrected retrospectively in the last quarter figures of 2006 in
accordance with IAS 8. The provision was increased by EUR 8 million,
decreasing the result for the last quarter by the same amount. The
financial statement section in this interim report provides more
detailed information on the correction of this error.

KEMIRA OYJ SHARES AND SHAREHOLDERS

During January-September, Kemira Oyj shares registered a high of
EUR 19.20 and a low of EUR 15.22, the share price averaging
EUR 16.96. On September 30, the company's market capitalization,
excluding treasury shares, totaled EUR 1,985 million.

On September 30, 2007, the company's share capital totaled EUR 221.8
million and the number of registered shares 125,045,000.

On August 29, 2007, the State of Finland sold 40,097,420 Kemira Oyj
shares to Finnish investors. The sold shares represented 32.1 per
cent of Kemira Oyj shares. As a result of this transaction, the State
of Finland's shareholding and voting rights fell to 16.52 per cent.
In its press release, the State of Finland announced that the shares
sold were divided between buyers as follows:
- Oras Invest Oy 15.6 per cent
- Jari, Jukka and Pekka Paasikivi 1.5 per cent (0.5 per cent each)
- Varma Mutual Pension Insurance Company 8.00 per cent
- lmarinen Mutual Pension Insurance Company 3.60 per cent
- Suomi Mutual Life Assurance Company 1.92 per cent
- Sampo Life 1.45 per cent.

After the transaction, Kemira issued a notification under chapter 2,
section 10 of the Finnish Securities Market Act on a change of
ownership. The following owners notified Kemira of a change of
ownership on August 29, 2007:

- Oras Invest Oy's holding in Kemira Oyj increased to 15.60 per cent
- The State of Finland's holding in Kemira Oyj decreased to 16.52 per
cent
- Varma Mutual Pension Insurance Company's holding in Kemira Oyj
increased to 9.71 per cent
- Ilmarinen Mutual Pension Insurance Company's holding in Kemira Oyj
increased to 5.32 per cent

After the transaction, Kemira's main shareholder is Oras Invest Oy
and its owners, members of the Paasikivi family.

Kemira holds 3,852,323 treasury shares, accounting for 3.1% of
outstanding company shares and voting rights.


EXTRAORDINARY GENERAL MEETING

The extraordinary general meeting of Kemira Oyj was held on October
4, 2007. The EGM elected members of the Board of Directors, the
number of whom remained at seven. Honorary Mining Counsellor Pekka
Paasikivi was elected as the Chairman and new member of the Board of
Directors, and CFO Juha Laaksonen was elected as a new member of the
Board of Directors. The current members Elizabeth Armstrong, Eija
Malmivirta, Ove Mattsson, Kaija Pehu-Lehtonen and Markku Tapio will
continue as members of the Board of Directors until the end of their
current term.

The EGM decided to dissolve the Supervisory Board and to amend the
Articles of Association as follows:
1.      Articles 5 and 8 of the Articles of Association regarding
Supervisory Board were deleted; and
2.      Articles 4, 7 and 18, items 3 and 7-10 of the Articles of
Association were amended so that references to the Supervisory Board
and its Chairman, Vice Chairmen and members were deleted.

At its constitutive meeting, the Board of Directors of Kemira Oyj
elected members from among the Board for the Audit Committee and the
Nomination and Compensation Committee.

The Board's Audit Committee members are Juha Laaksonen, Eija
Malmivirta and Kaija Pehu-Lehtonen. The Audit Committee is chaired by
Juha Laaksonen.

The Board's Nomination and Compensation Committee members are Pekka
Paasikivi, Ove Mattsson and Markku Tapio. The Committee is chaired by
Pekka Paasikivi.


APPOINTMENT IN KEMIRA MANAGEMENT

In October, Kemira Group's Board of Directors appointed Harri
Kerminen, M.Sc. (Eng.), MBA, 56, as the new CEO of Kemira Group as of
January 1, 2008. Mr Kerminen is currently President of Pulp&Paper,
Kemira's largest business area.

With effect from the same date, Kemira's current President and CEO,
Lasse Kurkilahti will become Senior Adviser to the Board of Kemira
Group. Mr. Kurkilahti will remain as Senior Adviser for the first
quarter of 2008, after which his contract as President and CEO will
come to an end in line with a prior agreement.

Harri Kerminen has held his current position as President of Kemira
Pulp&Paper since 2006. Prior to that, he was responsible for the
Kemira Specialty business. In his earlier career with Kemira, he has
acted as e.g. Vice President HR of Kemira Chemicals Oy, Manager of
the Kemira Oulu plants as well as working on various challenging
production site projects both in Finland and abroad.


OUTLOOK

Full-year revenue, operating profit and earnings per share for 2007
are expected to increase from their 2006 levels. Raw material and
energy prices, as well as transportation costs, are projected to
behave more moderately than in 2006 although the prices of some
oil-based raw materials and of energy appear to be on the rise.

Operational risks were presented in the Annual Report and no
significant changes have occurred.

Since the production-capacity utilization rates of Kemira
Pulp&Paper's customers are expected to be high, the business area's
revenue and operating profit are anticipated to grow from the
previous year's levels. Kemira has successfully integrated companies
acquired in 2006 as part of the Group's global pulp and paper
chemicals operations, and their favorable contribution to profit
performance will be reflected in the growing Far Eastern and South
American markets. A chemical plant under construction at the site of
a pulp mill in Uruguay will be phased in as the customer's pulp
production begins.

Kemira Water is expected to increase its revenue and operating profit
from 2006 levels, due in particular to the previous acquisitions, and
demand for its water treatment chemicals is anticipated to remain at
a good level. During 2007, Kemira Water will focus on the integration
of acquirees in particular and on the development of new products.

Kemira Specialty's revenue and operating profit are anticipated to
remain lower than their 2006 levels. Competition is expected to
remain tough in the titanium dioxide market. The sales forecast for
the remainder of the year is based on stable volumes versus 2006, but
with a continuing negative impact on sales revenue from currency and
USD based European imports. The business area's sales of organic
acids and acid derivatives are anticipated to continue favorably in
most areas. Sales revenue from sodium percarbonate, used in
detergents, is forecast to be slightly lower than the prior year,
with stable volumes and slightly lower prices. The evaluation process
for various ownership alternatives for Chemidet is expected to
conclude during 2007.

Kemira Coatings is expected to generate higher revenue due to demand
remaining at a good level in all market areas, with the strongest
growth anticipated in Russia and other CIS countries. Operating
profit for 2007 is expected to grow year on year spurred by favorable
developments in sales and the restructuring undertaken in recent
years.


Helsinki, October 31, 2007

Board of Directors

All forward-looking statements in this review are based on the
management's current expectations and beliefs about future events,
and actual results may differ materially from the expectations and
beliefs such statements contain.


KEMIRA GROUP

The figures are unaudited.
All figures in this financial report have been rounded
and consequently the
sum of individual figures can deviate from the presented
sum figure.

This Interim Consolidated Financial Statement has been prepared in
compliance
with IAS 34. Kemira Group has corrected a previous year
error in
accordance with IAS 8. The nature of the error is
described in the end
of the report.

Changes to the accounting policies as of
January 1, 2007:
- IFRS 7 (Financial Instruments: Disclosures)
has been
adopted by the Group in
2007
- Revised IAS 1 (Disclosures about capital) has
been
adopted by the Group in
2007
The Group assesses that the adoption of the revised
standards will not
have any material effect on its future financial
statements. However, the
resulting changes will add disclosures to the Financial
Statements.


INCOME STATEMENT              7-9/2007 7-9/2006  1-9/2007  1-9/2006       2006*
EUR million

Revenue                          729.5    652.6   2,155.8   1,853.0     2,522.5
Other income from
operations                         6.5     20.1      19.2      41.6        59.2
Expenses                        -623.0   -567.1  -1,889.5  -1,632.6    -2,264.5
Depreciation                     -33.5    -30.5     -99.5     -89.9      -123.5
Operating profit                  79.5     75.1     186.0     172.1       193.7
Financial income and
expenses                         -11.8    -11.6     -36.6     -24.5       -37.2
Income from associates             0.6      0.3       1.9      -1.2        -2.3
Profit before tax                 68.3     63.8     151.3     146.4       154.2
Income tax                       -15.4    -17.9     -37.8     -41.9       -42.0
Net profit for the                52.9     45.9     113.5     104.5       112.2
period

Attributable to:
Equity holders of the             51.8     45.0     110.5     101.8       108.6
parent
Minority interest                  1.1      0.9       3.0       2.7         3.6
Net profit for the                52.9     45.9     113.5     104.5       112.2
period


BALANCE SHEET
EUR million

ASSETS                                          30.9.2007           31.12.2006*

Non-current assets
Goodwill                                            624.8                 581.0
Other intangible assets                             119.3                 108.9
Property, plant and                               1,014.1                 987.1
equipment
Holdings in associates                                5.5                   8.1
Available-for-sale                                   85.4                  84.3
investments
Deferred tax assets                                   7.5                   7.7
Defined benefit pension                              24.8                  24.6
receivables
Other investments                                     8.4                   9.5
Total non-current assets                          1,889.8               1,811.2

Current assets
Inventories                                         318.8                 293.2
Receivables
  Interest-bearing                                    3.5                   9.1
receivables
  Interest-free                                     653.9                 565.4
receivables
Total receivables                                   657.4                 574.5
Money market investments -
cash equivalents                                     21.6                  35.0
Bank and cash                                        38.6                  41.1
Total current assets                              1,036.4                 943.8
Non-current assets held                               1.5                  14.4
for sale
Total assets                                      2,927.7               2,769.4

EQUITY AND LIABILITIES                          30.9.2007           31.12.2006*

Equity attributable to
equity
holders of the parent                             1,120.6               1,069.9
Minority interest                                    14.0                  12.6
Total equity                                      1,134.6               1,082.5

Non-current liabilities
Interest-bearing                                    627.5                 395.1
non-current liabilities
Deferred tax liabilities                            116.5                 105.9
Pension liabilities                                  67.9                  66.8
Provisions                                           21.9                  63.3
Total non-current                                   833.8                 631.1
liabilities

Current liabilities
Interest-bearing current                            431.6                 508.5
liabilities
Interest-free current                               516.6                 522.9
liabilities
Provisions                                           11.1                  15.5
Total current liabilities                           959.3               1,046.9
Liabilities directly associated with
non-current
assets classified as held                             0.0                   8.9
for sale
Total liabilities                                 1,793.1               1,686.9
Total equity and                                  2,927.7               2,769.4
liabilities

Non-current assets held for sale include US- and
Canada-based factory sites.

* Prior year correction
included


CONSOLIDATED CASH FLOW STATEMENT
EUR million                                      1-9/2007  1-9/2006        2006

Cash flows from operating
activities
  Adjusted operating                                262.3     200.0       232.0
profit
  Interests                                         -27.3     -18.5       -30.4
  Dividend income                                     2.1       1.9         2.0
  Other financing items                                 -      -5.1        -1.3
  Income taxes paid                                 -24.3     -24.8       -45.1
Total funds from                                    212.8     153.5       157.2
operations

  Change in net working                             -98.9     -45.4        59.6
capital
Total cash flows from operating                     113.9     108.1       216.8
activities

Cash flows from investing
activities
  Capital expenditure for                           -47.2    -108.1      -297.4
acquisitions
  Other capital                                    -178.7     -96.8      -164.6
expenditure
  Proceeds from sale of                             -11.4      64.2       102.9
assets
  Net cash used in                                 -237.3    -140.7      -359.1
investing activities
Cash flow after investing                          -123.4     -32.6      -142.3
activities

Cash flows from financing
activities
  Change in long-term
loans
  (increase +, decrease -)                           60.0      73.5       173.4
  Change in long-term loan
receivables
  (decrease +, increase -)                           -0.7       0.4         1.5
  Short-term financing,
net
  (increase +, decrease -)                          105.8      23.9        33.8
  Dividends paid                                    -60.4     -45.2       -46.3
  Other                                               2.7      15.8        -0.2
Net cash used in financing                          107.4      68.4       162.2
activities

Net change in cash and cash                         -16.0      35.8        19.9
equivalents

  Cash and cash equivalents at end of                60.2      92.1        76.2
period
  Cash and cash
equivalents at
  beginning of period                                76.2      56.3        56.3
Net change in cash and cash                         -16.0      35.8        19.9
equivalents


CONSOLIDATED CASH FLOW STATEMENT                 7-9/2007  7-9/2006

Cash flows from operating
activities
  Adjusted operating                                 96.2      61.1
profit
  Interests                                         -12.2      -3.3
  Dividend income                                     2.0       0.1
  Other financing items                                 -      -5.6
  Income taxes paid                                  -4.8      -6.9
Total funds from                                     81.2      45.4
operations

  Change in net working                               9.6      34.4
capital
Total cash flows from operating                      90.8      79.8
activities

Cash flows from investing
activities
  Capital expenditure for                            -2.6      -5.9
acquisitions
  Other capital                                     -57.6     -37.2
expenditure
  Proceeds from sale of                              14.6      30.4
assets
  Net cash used in                                  -45.6     -12.7
investing activities
Cash flow after investing                            45.2      67.1
activities

Cash flows from financing
activities
  Change in long-term
loans
   (increase +, decrease                             66.7      29.7
-)
  Change in long-term loan
receivables
   (decrease +, increase                             -1.4      -0.3
-)
  Short-term financing, net
    (increase +, decrease                          -110.7    -115.7
-)
  Dividends paid                                     -0.5      -0.1
  Other                                              -1.3       1.1
Net cash used in financing                          -47.2     -85.3
activities

Net change in cash and cash                          -2.0     -18.2
equivalents

  Cash and cash equivalents at end of                60.2      92.1
period
  Cash and cash equivalents at
  beginning of period                                62.2     110.3
Net change in cash and cash                          -2.0     -18.2
equivalents


STATEMENT OF CHANGES IN EQUITY

                                                  Capital
                                                  paid-in
                                                       in
                                 Share    Share excess of     Other  Fair value
                               capital    issue par value  reserves     reserve

Shareholders' equity at
January 1, 2006                  221.3      0.0     257.8       2.8        64.3
Net profit for the
financial year
Dividends paid
Treasury shares issued
to target group
Share-based compensation
Options subscribed                 0.2
for shares
Exchange differences
Hedge of net investments
in foreign entities
Cash flow hedging: amount
entered in shareholders'                                                   10.6
equity
Acquired minority interest
Transfer between
restricted and
non-restricted equity
Other changes
Shareholders' equity at
September 30, 2006               221.5      0.0     257.8       3.2        74.9


Shareholders' equity at
January 1, 2007                  221.6      0.0     257.9       3.1        59.6
Net profit for the
financial year
Dividends paid
Treasury shares issued
to target group
Share-based compensation
Options subscribed                 0.2
for shares
Exchange differences                                            0.1
Hedge of net investments
in foreign entities
Cash flow hedging: amount
entered in shareholders'                                                   -1.5
equity
Acquired minority interest
Transfer between
restricted and
non-restricted equity                                           0.1
Other changes
Shareholders' equity at
September 30, 2007               221.8      0.0     257.9       3.3        58.1


                              Exchange Treasury  Retained  Minority
                           differences   shares  earnings interests       Total

Shareholders' equity at
January 1, 2006                  -33.9    -27.5     520.7      13.7     1,019.2
Net profit for the                                  101.8       2.7       104.5
financial year
Dividends paid                                      -43.6      -2.2       -45.8
Treasury shares issued
to target group                             0.7      -0.7                   0.0
Share-based compensation                              0.7                   0.7
Options subscribed                                                          0.2
for shares
Exchange differences              -4.4                          0.1        -4.3
Hedge of net investments
in foreign entities                2.9                                      2.9
Cash flow hedging: amount
entered in shareholders'                                                   10.6
equity
Acquired minority interest                                     -0.8        -0.8
Transfer between
restricted and
non-restricted equity                                -0.4
Other changes                                        -0.8       0.1        -0.7
Shareholders' equity at
September 30, 2006               -35.4    -26.8     577.7      13.6     1,086.5


Shareholders' equity at
January 1, 2007                  -30.8    -26.8     585.3      12.6     1,082.5
Net profit for the                                  110.5       3.0       113.5
financial year
Dividends paid                                      -58.2      -2.2       -60.4
Treasury shares issued
to target group                             0.9      -0.9                   0.0
Share-based compensation                              1.3                   1.3
Options subscribed                                                          0.2
for shares
Exchange differences              -4.8                          0.2        -4.5
Hedge of net investments
in foreign entities                3.2                                      3.2
Cash flow hedging: amount
entered in shareholders'                                                   -1.5
equity
Acquired minority interest                                      0.4         0.4
Transfer between
restricted and
non-restricted equity                                -0.1
Other changes                     -0.1                                     -0.1
Shareholders' equity at
September 30, 2007               -32.5    -25.9     637.9      14.0     1,134.6



At the end of the year 2006 there were 3,979,670 treasury
shares.
Of the shares that were granted in connection with the share-based
incentive plan 16,796 were returned to Kemira in 2007. A total of
144,143 shares
were issued to key persons based on the incentive plan on February
23, 2007.
The total equivalent book value of the shares issued amounted to
approx.
EUR 255,133. The issue does not materially affect the distribution
of ownership
and voting power in the company.

Kemira had in its possession 3,852,323 of its treasury shares at
September 30, 2007.
Their average acquisition share price was EUR 6.73 and the treasury
shares
represented 3.1% of the share capital and of the aggregate number
of votes
conferred by all the shares. The equivalent book value of the
treasury
shares is EUR 6.8 million.



KEY FIGURES                              1-9/2007 1-9/2006      2006*

Earnings per share,
basic and
diluted, EUR                                 0.91     0.84       0.90
Cash flow from operations
per share, EUR                               0.94     0.89       1.79
Capital expenditure,                        225.9    204.9      462.0
EUR million
Capital expenditure /                        10.5     11.1       18.3
revenue, %
Average number of
shares (1000),
basic *)                                  121,155  120,853    120,877
Average number of
shares (1000),
diluted *)                                121,194  121,043    121,051
Number of shares at
the end
of the period (1000),                     121,193  120,931    120,988
basic *)
Number of shares at
the end of the
period (1000),                            121,193  121,046    121,204
diluted *)

Equity per share,
attributable to
equity holders of the                        9.25     8.87       8.85
parent, EUR
Equity ratio, %                              38.9     42.3       39.2
Gearing, %                                   88.0     65.6       76.4
Net liabilities, EUR                        998.9    712.6      827.4
million
Personnel (average)                        10,008    9,117      9,186

                                         7-9/2007 7-9/2006

Earnings per share,
basic and
diluted, EUR                                 0.43     0.37
Cash flow from operations per                0.75     0.66
share, EUR
Capital expenditure,                         60.2     43.1
EUR million
Capital expenditure /                         8.3      6.6
revenue, %
Average number of
shares (1000),
basic *)                                  121,193  120,934
Average number of
shares (1000),
diluted *)                                121,193  121,043
Number of shares at
the end of the
period (1000), basic                      121,193  120,931
*)
Number of shares at
the end of the
period (1000),                            121,193  121,046
diluted *)

*) Number of shares
outstanding, adjusted by the
 number of shares
bought back.


REVENUE BY BUSINESS   7-9/2007 7-9/2006  1-9/2007 1-9/2006      2006*
AREA
EUR million

Kemira Pulp&Paper        253.1    261.9     768.5    729.3      993.3
Kemira Water             187.4    101.7     542.5    296.1      467.6
Kemira Specialty         109.8    112.8     323.9    339.0      456.2
Kemira Coatings          182.3    164.6     506.8    453.5      562.8
Other and Intra-Group
sales                     -3.1     11.6      14.1     35.1       42.6
Total Group              729.5    652.6   2,155.8  1,853.0    2,522.5

OPERATING PROFIT BY   7-9/2007 7-9/2006  1-9/2007 1-9/2006      2006*
BUSINESS AREA

Kemira Pulp&Paper         23.6     24.3      70.0     70.7       90.8
Kemira Water              14.9      9.0      39.8     25.0       35.3
Kemira Specialty          10.0     11.7      27.4     34.7       45.8
Kemira Coatings           38.9     39.0      79.0     73.6       72.1
Other and                 -7.9     -8.9     -30.2    -31.9      -50.3
eliminations
Total Group               79.5     75.1     186.0    172.1      193.7


CHANGES IN PROPERTY, PLANT AND           1-9/2007 1-9/2006       2006
EQUIPMENT
EUR million

Carrying amount at                          987.1    865.0      865.0
beginning of year
Acquisitions of                               5.0     27.6      151.9
subsidiaries
Increases                                   155.2     95.3      154.4
Decreases                                    -4.1     -4.2      -42.0
Depreciation and                            -84.0    -77.7     -106.3
impairments
Exchange rate
differences and
other changes                               -45.1    -56.0      -35.9
Net carrying amount                       1,014.1    850.0      987.1
at end of period

CHANGES IN INTANGIBLE                    1-9/2007 1-9/2006       2006
ASSETS
EUR million

Carrying amount at                          689.9    629.7      629.7
beginning of year
Acquisitions of                              19.0     44.5       71.8
subsidiaries
Increases                                    22.4      9.8       18.1
Decreases                                    -0.3     -0.1       -0.4
Depreciation and                            -15.5    -12.2      -17.2
impairments
Exchange rate
differences and
other changes                                28.6     -8.3      -12.1
Net carrying amount                         744.1    663.4      689.9
at end of period


CONTINGENT                              30.9.2007          31.12.2006
LIABILITIES
EUR million

Mortgages                                    62.0                64.8
Assets pledged
  On behalf of own                           17.6                19.5
commitments
Guarantees
  On behalf of own                           12.1                 6.4
commitments
  On behalf of                                7.1                32.6
associates
  On behalf of others                         3.6                 1.4
Operating leasing
liabilities
  Maturity within one                        14.4                14.9
year
  Maturity after one                        112.3               118.1
year
Other obligations
  On behalf of own                            0.3                 0.4
commitments
  On behalf of                                2.2                 2.3
associates



Major off-balance sheet investment commitments

Major amounts of contractual commitments for the acquisition
of property, plant and equipment on September 30, 2007 were EUR 26
million for
the construction of the chemical plant in Uruguay, EUR 16 million
for the investment of Kemira Coatings in Russia and
EUR 7 million for the environmental investment in Pori.

Litigation

The Group has extensive international operations and
is involved in a number of legal proceedings incidental to these
operations.
The Group does not expect the outcome of any legal proceedings
currently pending to have a materially adverse effect upon the
Group's
consolidated result.

Kemira Chemicals, Inc. has received a grand jury subpoena
to produce documents in connection with an investigation by the
United
States Department of Justice's Antitrust Division, relating to the
hydrogen
peroxide business in the US. Kemira Oyj, Kemira Chemicals, Inc. and
Kemira Chemicals Canada, Inc. have recently received claims or
were named in class action lawsuits filed by direct and indirect
purchasers
of hydrogen peroxide and persalts in US federal and state courts
and in Canada.

In these civil actions it is alleged that the US plaintiffs
suffered
damages resulting from a cartel among hydrogen peroxide suppliers.
The existence of the United States Departments of Justice's Antitrust
Division's
investigations and the European Commission's ruling in a case of
infringement
of competition law in May 2006 are relied upon in support of the
allegations.

Finnish Chemicals Oy has received in August 2007 from the European
Union Comission a statement of objections in respect to competition
law
infringements by sodium chlorate producers during 1994-2000 to
which
statement of objections Finnish Chemicals Oy has given its reply.

RELATED PARTY
Related party transactions have decreased due to the sale of
Kemira's
50 % stake in Swedish filler producer Scanspac (joint venture) in
September 2007.
Transactions with Scanspac represented about 80 % of the Group's
related
party transactions. Other than that the related party transactions
have not
changed materially after annual closing 2006.



DERIVATIVE INSTRUMENTS
EUR million
                                   30.9.2007              31.12.2006
                          Nominal       Fair      Nominal       Fair
                            value      value        value      value
Currency instruments
Forward contracts           458.0        5.3        389.4        5.5
of which hedges of
net investment
in a foreign operation          -          -         19.6        2.2
Currency options
  Bought                     41.2        0.1         42.8          -
  Sold                       21.6          -         45.3        0.2
Currency swaps              148.8        7.0        115.9        8.4

Interest rate instruments
Interest rate swaps         111.1        3.7        109.2        4.7
of which cash flow hedge     84.1        3.3         83.8        4.2
Interest rate options
  Bought                     10.0        0.1            -          -
  Sold                          -          -            -          -

Bond futures                 10.0          -         10.0       -0.2
  of which open              10.0          -         10.0       -0.2

Other instuments                  Fair value              Fair value
Electricity forward
contracts             GWh   944.6        9.1  GWh 1,227.0       10.4
of which cash flow
hedge                 GWh   944.6        9.1  GWh 1,227.0       10.4
Propane swap
contracts            Tons       -          - Tons 1,000.0       -0.1



The fair values of the instruments which are publicly traded
are based on market valuation on the date of reporting. Other
instruments
have been valuated based on net present values of future cash flows.
Valuation models have been used to estimate the fair values of
options.

Nominal values of the financial instruments do not necessarily
correspond to the actual cash flows between the counterparties and
do not therefore give a fair view of the risk position of the
Group.


BUSINESS COMBINATIONS

The Cytec water treatment business

Kemira acquired the Cytec Industries, Inc.'s water treating
and acryl amide business on October 1, 2006. Cytec's water treatment
chemicals product line consists of water treatment solutions for
industrial
and municipal water treatment plants. The acquisition
includes five production plants of which three are located in the US
(Mobile/Alabama, Longview/Washington, and Fortier/Louisiana), and
two in Europe (Bradford /UK and Botlek/the Netherlands).

The acquisition of Cytec's water treatment chemicals
business is in line with Kemira's growth strategy. It also enables
the Group to significantly broaden its current product portfolio and
gain
greater geographical presence in key markets and inside key customer
segments. The acquired business' market regions include the US,
South America, Asia and Europe.

The total price of the acquisition is approx. EUR 197 million
but the amount is subject to the adjustment of net working capital.
Capitalized acquisition costs directly attributed to the combination
were 3.1 million on September 30, 2007. The acquisition was financed
with
Kemira Group's own cash assets and through existing financing
agreements.

In addition to the purchase of the business (asset
purchase agreement) which was closed October 1, 2006,
Kemira signed a share purchase agreement to buy the shares
of Cytec Manufacturing BV. The closing and payment of the share
purchase was on January 11, 2007. Kemira has also signed transition
service agreements with nine Cytec companies concerning
certain transition services with respect of the products of the
business
(Overseas units). The assets related to these transition service
agreements will be transferred to Kemira and paid gradually
starting on April 1 and ending on November 2007. One of those
asset transfers will be in the form of a share purchase of
an existing company.

The control over the whole Cytec water treatment business
was transferred to Kemira on October 1, 2006. The purchase price
allocation of the Cytec water treatment business has been made
for the September 30, 2007 financial statements. The fair
values of the business combination's intangible assets consist of
global patents, customer related assets and manufacturing knowhow.

Business combination has been done preliminarily since the
business transfers of the Overseas units are still on-going according
to the plan.



                                                             Carrying
                                        Fair values           amounts
                                        recorded on             prior
                                           business       to business
                                        combination       combination

Intangible assets                              15.5                 -
Property, plant and                            91.0              54.7
equipment
Inventories                                    28.6              33.3
Trade receivables and other                    39.8              34.9
receivables
Cash and cash                                   0.3               0.3
equivalents
Total assets                                  175.2             123.2

Interest bearing                                  -                 -
current liabilities
Other liabilities                              11.8              12.8
Deferred tax                                    1.9                 -
liabilities
Total liabilities                              13.7              12.8

Net assets                                    161.5             110.4
Cost of business                              197.2
combination (net)
Goodwill                                       35.7

Acquisition cost                              197.2
Overseas units                                 -7.6
Cash and cash equivalents in
subsidiary
acquired                                       -0.3
Cash outflow on                               189.3
acquisition

The revenue of the acquired unit for January 1 -
September 30, 2007
totaled EUR 205.4 million and
operating profit EUR 10.3 million.


DEFINITIONS OF KEY
FIGURES


Earnings per share           Equity ratio, %:
(EPS):
Net profit                   Shareholders' equity x 100 /
attributable to
equity holders               Total assets - prepayments
of the parent /              received
Average number of
shares


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


Cash flow from               Net liabilities:
operations
per share:                   Liabilities - bank and cash
                             -
Cash flow from               money market investments
operations /
Average number of
shares


Equity per share:            Return on capital employed
Equity attributable to       (ROCE), %:
equity
holders of the parent        Operating profit +
at                           share
end of quarter /             of associates'
Number of shares at          results x 100 /
end of quarter               (Net working capital +
                             property, plant and
                             equipment
                             available for use +
                             intangible assets + investments
                             in
                             associates) *)

*) Average


PRIOR PERIOD ERROR

An error was discovered related to the
financial statements of
2006 and has been corrected
retrospectively according to IAS 8.
The error was related to the calculation of the
provision made for the
closure of the Water Soluble business
unit and as a result of this
the provision was reported 8 million
euro too low. This
has been corrected to the fourth quarter result of
2006. The income
statement of full year 2006 and the
balance sheet at December 31,
2006 were changed as
follows:


INCOME STATEMENT                           Reported         Corrected
EUR million                                    2006              2006

Revenue                                     2,522.5           2,522.5
Other income from                              59.2              59.2
operations
Expenses                                   -2,256.5          -2,264.5
Depreciation                                 -123.5            -123.5
Operating profit                              201.7             193.7
Financial income and                          -37.2             -37.2
expenses
Income from associates                         -2.3              -2.3
Profit before tax                             162.2             154.2
Income tax                                    -42.0             -42.0
Net profit for the                            120.2             112.2
period

Attributable to:
Equity holders of the                         116.6             108.6
parent
Minority interest                               3.6               3.6
Net profit for the                            120.2             112.2
period


KEY FIGURES                                Reported         Corrected
                                               2006              2006

Earnings per share,
basic
and diluted, EUR                               0.96              0.90


BALANCE SHEET                              Reported         Corrected
EUR million                                  31.12.            31.12.
                                               2006              2006

Equity attributable to
equity
  holders of the                            1,077.9           1,069.9
parent
Total equity                                1,090.5           1,082.5

Provisions                                     55.3              63.3
Total non-current                             623.1             631.1
liabilities

Retrospective restated
quarterly figures are
presented as appendix to
this interim report.


QUARTERLY EARNINGS
PERFORMANCE
                                                                 2006
(Unaudited figures)      1-3       4-6          7-9 10-12       Total
Revenue
  Kemira Pulp&Paper    209.5     257.9        261.9 264.0       993.3
  Kemira Water          92.3     102.1        101.7 171.5       467.6
  Kemira Speciality    118.6     107.6        112.8 117.2       456.2
  Kemira Coatings      118.6     170.3        164.6 109.3       562.8
  Other and
intra-Group
   sales                13.9       9.6         11.6   7.5        42.6
Total                  552.9     647.5        652.6 669.5     2,522.5

Operating profit
  Kemira Pulp&Paper     26.0      20.4         24.3  20.1        90.8
  Kemira Water           6.4       9.6          9.0  10.3        35.3
  Kemira Speciality     11.3      11.7         11.7  11.1        45.8
  Kemira Coatings        9.6      25.0         39.0  -1.5        72.1
  Other including
  eliminations          -7.8     -15.2         -8.9 -18.4       -50.3
Total                   45.5      51.5         75.1  21.6       193.7

Financial income
and expenses            -7.1      -5.8        -11.6 -12.7       -37.2
Share of associates'
results                 -0.9      -0.6          0.3  -1.1        -2.3
Profit before tax       37.5      45.1         63.8   7.8       154.2
Income tax             -10.9     -13.1        -17.9  -0.1       -42.0
Net Profit              26.6      32.0         45.9   7.7       112.2
Attributable to
Equity holders
of the parent           25.8      31.0         45.0   6.8       108.6
Minority interests       0.8       1.0          0.9   0.9         3.6
Net Profit              26.6      32.0         45.9   7.7       112.2

Earnings per share,
  diluted, EUR          0.21      0.26         0.37  0.06        0.90

Capital employed,                                             1,876.6
rolling

ROCE, %                                                        10.2 %



For further information, please contact:

Kemira Oyj
Timo Leppä, Executive Vice President, Group Communications
Tel. +358 10 862 1700

Kemira Oyj
Andreas Langhoff, Investor Relations Manager
Tel. +358 10 862 1140


Kemira will hold a press conference on its January-September 2007
results for the media and analysts at its head office (Porkkalankatu
3) today, starting at 10.30 a.m. A conference call in English will be
held at 1:00 p.m. We kindly request that participants call us around
10 minutes before the conference begins, on +44 (0)20 7162 0025.




Kemira is a chemicals group made up of four business areas: Kemira
Pulp&Paper, Kemira Water, Kemira Specialty and Kemira Coatings.
Kemira is a global group of leading chemical businesses with a unique
competitive position and a high degree of mutual synergy.

In 2006, Kemira recorded revenue of around EUR 2.5 billion and had a
payroll of 9,000 employees. The company operates in 40 countries.