Kemira Oyj's Financial Statements Bulletin 2014 Kemira Oyj

Kemira Oyj Stock Exchange Release February 10, 2015 at 8.30 am (CET+1) This is a summary of the Financial Statements Bulletin of 2014. The complete Financial Statements Bulletin 2014 with tables is attached to this release and available at www.kemira.com/investors. Fourth quarter: * Organic revenue growth was 6% due to sales volumes growth in all three segments. Reported revenue remained stable at EUR 547.1 million (545.2). * Operative EBITDA increased 13% to EUR 65.3 million (58.0) with improved margin of 11.9% (10.6%). Full year: * Organic revenue growth reached 3%. Reported revenue decreased 4% to EUR 2,136.7 million (2,229.1), mainly due to divestments of coagulant business in Brazil, formic acid business in Finland, as well as distribution business in Denmark. * Operative EBITDA was EUR 252.9 million (251.9) with an improved margin of 11.8% (11.3%). * Reported earnings per share increased to EUR 0.59 (-0.21) mainly as a result of lower non-recurring charges than in the comparable period. Operative earnings per share were EUR 0.63 (0.70). * The Board of Directors proposes a cash dividend of EUR 0.53 per share (0.53) to the Annual General Meeting 2015, totaling EUR 81 million (81) equivalent to 84% (76%) of the operative net profit. * Revised dividend policy aims at paying a stable and competitive dividend. * In 2015, Kemira will focus on profitable growth organically and inorganically. Kemira expects its revenue in 2015 to increase compared to 2014 and operative EBITDA in 2015 to be approximately at the same level or increase compared to 2014. The outlook excludes the impact of AkzoNobel paper chemical business (acquisition expected to close in the first quarter of 2015). At closing, AkzoNobel paper chemical business is expected to add revenue of more than EUR 200 million on an annualized basis. Kemira's President and CEO Jari Rosendal: "Kemira's fourth quarter went according to plan with continued organic growth and improved operative EBITDA margin. Paper and Oil & Mining grew in line with their overall growth during the year, whereas Municipal & Industrial recovery became more visible toward the end of the year with the fourth quarter being segment's first quarter with organic growth since Q3 2013. In 2014, all our three segments delivered results well in line with their strategic objectives. Paper delivered 6% and Oil & Mining 15% organic growth, exceeding their respective market growth rates. Operative EBITDA margin in Municipal & Industrial improved and cash flow was solid. During the year, we made good progress in expanding our Paper business geographically. In South America, we started pulp chemicals deliveries to the new Montes del Plata pulp mill in Uruguay. Kemira was also selected as a sodium chlorate supplier to Klabin's new pulp mill in Brazil. In APAC, the ongoing ramp-up of our new manufacturing site in Nanjing, China supports growth in the region. In addition, we are doubling our revenue in the region with the acquisition of AkzoNobel's paper chemical business. Looking forward, demand development for our products going into US shale operations - representing less than 50% of Oil & Mining revenue - is uncertain due to the steep drop in oil price. On the other hand, the present currency exchange rates, particularly the strengthened U.S. dollar, are expected to support our top line during 2015." KEY FIGURES AND RATIOS EUR million  Oct-Dec 2014 Oct-Dec 2013 Jan-Dec 2014 Jan-Dec 2013 ------------------------------------------------------------------------------- Revenue 547.1 545.2 2,136.7 2,229.1 ------------------------------------------------------------------------------- Operative EBITDA 65.3 58.0 252.9 251.9 ------------------------------------------------------------------------------- Operative EBITDA, % 11.9 10.6 11.8 11.3 ------------------------------------------------------------------------------- EBITDA 73.2 -11.2 252.9 141.9 ------------------------------------------------------------------------------- EBITDA, % 13.4 -2.1 11.8 6.4 ------------------------------------------------------------------------------- Operative EBIT 39.5 34.5 158.3 164.2 ------------------------------------------------------------------------------- Operative EBIT, % 7.2 6.3 7.4 7.4 ------------------------------------------------------------------------------- EBIT 45.4 -38.9 152.6 42.6 ------------------------------------------------------------------------------- EBIT, % 8.3 -7.1 7.1 1.9 ------------------------------------------------------------------------------- Share of profit or loss of 0.2 -0.1 0.2 -1.1 associates ------------------------------------------------------------------------------- Financing income and -10.3 -7.7 -30.7 -39.0 expenses ------------------------------------------------------------------------------- Profit before tax 35.3 -46.7 122.1 2.5 ------------------------------------------------------------------------------- Net profit 23.9 -48.7 95.8 -25.9 ------------------------------------------------------------------------------- Earnings per share, EUR 0.15 -0.33 0.59 -0.21 ------------------------------------------------------------------------------- Operative earnings per 0.16 0.17 0.63 0.70 share, EUR ------------------------------------------------------------------------------- Capital employed* 1,427.7 1,493.0 1.427.7 1,493.0 ------------------------------------------------------------------------------- Operative ROCE* 11.1 10.9 11.1 10.9 ------------------------------------------------------------------------------- ROCE* 10.7 2.8 10.7 2.8 ------------------------------------------------------------------------------- Capital expenditure 54.9 105.0 145.1 197.5 ------------------------------------------------------------------------------- Cash flow after investing -22.4 75.2 195.7 activities -18.5 ------------------------------------------------------------------------------- Equity ratio, % at period- 51 51 51 end 51 ------------------------------------------------------------------------------- Gearing, % at period-end 42 41 42 41 ------------------------------------------------------------------------------- Personnel at period-end 4,248 4,453 4,248 4,453 ------------------------------------------------------------------------------- *12-month rolling average Definitions of key figures are available at www.kemira.com > Investors > Financial information. Definition of Capital employed has been changed and the respective numbers for 2013 and 2014 have been restated. Comparative 2013 figures are provided in parentheses for some financial results, where appropriate. Operative EBITDA, operative EBIT, operative earnings per share and operative ROCE do not include non-recurring items. Dividend and dividend policy (revised) On December 31, 2014, Kemira Oyj's distributable funds totaled EUR 600,226,586 net profit, which accounted for EUR -1,279,154 for the period. No material changes have taken place in the company's financial position after the balance sheet date. Kemira Oyj's Board of Directors proposes to the Annual General Meeting to be held on March 23, 2015 that a dividend of EUR 0.53 per share totaling EUR 81 million shall be paid on the basis of the adopted balance sheet for the financial year ended December 31, 2014. Kemira revised dividend policy aims at paying a stable and competitive dividend. KEMIRA'S FINANCIAL TARGETS 2017 AND OUTLOOK 2015 Kemira will continue to focus on improving its profitability and operative cash flow. The company will also continue to invest in order to secure future growth serving selected water intensive industries. The company's financial targets for 2017 are: * revenue EUR 2.7 billion * operative EBITDA-% of revenue 15% * gearing level <60%. Kemira expects its capital expenditure-to-sales ratio to increase in the next few years from the 2014 level of 6.3%. In addition, Kemira expects its medium- term operative tax rate to be in the range of 22%-25%. This rate excludes non- recurring items. The basis for growth is the expanding market for chemicals and  Kemira's expertise that helps customers in water intensive industries to increase their water, energy and raw material efficiency. The need to increase operational efficiency in our customer industries creates opportunities for Kemira to develop new products and services for both current and new customers. Research and Development is a critical enabler of organic growth for Kemira, providing differentiation capabilities in its relevant markets. Kemira will invest in innovation, technical expertise, and competencies in its selected focus areas. Outlook for 2015 In 2015, Kemira will focus on profitable growth both organically and inorganically. Kemira's revenue in 2015 is expected to increase compared to 2014 and operative EBITDA in 2015 to remain approximately at the same level or increase compared to 2014. The outlook excludes the impact of AkzoNobel paper chemical business (acquisition expected to close in the first quarter of 2015). At closing, AkzoNobel paper chemical business is expected to add revenue of more than EUR 200 million on an annualized basis. Helsinki, February 9, 2015 Kemira Oyj Board of Directors FINANCIAL CALENDAR 2015 Interim Report January-March 2015                             April 24, 2015 Interim Report January-June 2015                               July 22, 2015 Interim Report January-September 2015                      October 23, 2015 Kemira Oyj's Annual Report 2014 will be published during the week starting on February 23, 2015. The Annual General Meeting is scheduled for Monday, March 23, 2015 at 1.00 pm (CET+1). The Board of Directors of the company will convene the meeting. Press and analyst conference and conference call Kemira will arrange a press conference for analysts and the media starting at 10.30 am (8.30 am UK time) at Kemira House, Porkkalankatu 3, Helsinki. In the conference, Kemira's President and CEO Jari Rosendal and the CFO Petri Castrén will present the results. The press conference will be held in English and will be webcasted at  www.kemira.com/investors. The presentation material will be available around 10.00 am and the webcast after the event at the above mentioned company web site. Conference call in connection to the press and analyst conference You can also listen to the conference live over the phone and attend the Q&A session via a conference call. In order to participate in the call, please dial ten minutes before the conference begins: FI    +358 9 81710465 SE  +46 8 51999355 UK  +44 20 31940550 US  +1 855 2692605 No PIN code requested. For more information, please contact Kemira Oyj Tero Huovinen, VP, Investor Relations +358 10 862 1980 Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise, application know-how and chemicals that improve our customers' water, energy and raw material efficiency. Our focus is on pulp & paper, oil & gas, mining and water treatment. In 2014, Kemira had annual revenue of EUR 2.1 billion and around 4,250 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd. www.kemira.com [HUG#1892989]