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INVESTOR PRESENTATION

Good organicgrowth

APRIL 27, 2018

SEGMENT SPLIT PRODUCTS

A P RIL 2018 INV E S T OR P RE S E NT A T ION 2

GEOGRAPHIES

Kemira in briefFY2017: REVENUE EUR 2,486 MILLION, OPERATIVE EBITDA EUR 311 MILLION, OPERATIVE EBITDA MARGIN 12.5%, OPERATIVE ROCE 9.7%

25% Bleaching

and pulping

20%

Polymers

20% Other:

e.g. defoamers,

dispersants,

and biocides

20%

Coagulants

15%

Sizing

and

strength

Revenue by product category rounded to the nearest 5%

39%

AMERICAS

1.USA

2.Canada

3.Brazil

52%

EMEA

1.Finland

2.Sweden

3.Germany

9%

APAC

1.China

2.South

Korea

3. Indonesia

59%Pulp & Paper

41%Industry & Water

CUSTOMERS

2,000 customers

TOP 10 customers are ~25% of revenue

TOP 50 customers are ~45 of revenue

EXAMPLES OF

LARGEST CUSTOMERS

Municipalities, e.g.

Frankfurt, London, New York,

Paris, Shanghai, Singapore

#1 in

water

treatment

in NA and

Europe

#2 in friction reduction in North

American shale oil & gas

#1 globally

Global trends favor Kemira


Trends, among others

How Kemira benefits from the trend

E-commerce /

online

shopping

Recycling

Increasing need

for packaging

material

More chemicals

required for

stronger

paper/board

Plastics to

be replaced

by biobased

products

Increased

demand of

biobased and

more sustainable

technologies

Regulation driving

better water quality

Finding oil

reservoirs

becoming harder

With chemistry

water can be

purified better

With polymers

increasing

amount of oil

can be

extracted from

current and

new oil fields

Plastics to

be replaced

by biobased

products

REVENUE EUR million

2,229

2,137

2,373 2,363

2,486

2013 2014 2015 2016 2017

OPERATIVE EBITDAOPERATIVE EBITDA MARGINEUR million

252 253

287

303311

11.3%

11.8%12.1%

12.8%

12.5%

2013 2014 2015 2016 2017

INV E S T OR P RE S E NT A T ION 4

Delivering profitable growth

A P RIL 2018

1,0681,170

1,417 1,457 1,477

130137

171195

198

2013 2014 2015 2016 2017

REVENUE ANDOPERATIVE EBITDA

REVENUE BYPRODUCT CATEGORY


REVENUE BY CUSTOMERTYPE AND MARKET GROWTH

Pulp & Paper – market leader with solid track record

MARKET ENVIRONMENT REVENUE BY GEOGRAPHIES AND

MARKET GROWTH BY REGION

CUSTOMER EXAMPLES

50%

EMEA

35%

Americas 15% APAC

35%

Bleaching

& pulping

25%

Sizing &

strength

20%Defoamers,

dispersants,

biocides and

other process

chemicals

10%

Polymers

10% Other 40%

Pulp

20%

Printing &

writing papers

40%

Board &

tissue

-1-2%2-3%1-2%Market

growth

2-3%0-1%0-1%Market

growth

AkzoNobel (pulp) #4

BASF (paper) #2

Solenis (paper) #3

Kemira (pulp and paper) m.s. ~16% #1

Ecolab (paper) #5

Note: Revenue by industry, product and geography rounded to the nearest 5%

A P RIL 2018

REVENUE BYPRODUCT CATEGORY


REVENUE BY APPLICATIONTYPE AND MARKET GROWTH

Industry & Water – strong positions in chosen categories

REVENUE BY GEOGRAPHIES AND

MARKET GROWTH BY REGION

40%

Coagulants

40%

Polymers

20%

Other

products

such as

defoamers

and biocides

2-3%5-6%2-3%

50%

EMEA

45%

Americas

5%

APAC

70%

Water treatment 10%

Other

20%

Oil & Gas

5-6%3-4%3-4%

WATER TREATMENT

Amsterdam

Barcelona

Frankfurt

London

Oslo

Paris

Stockholm

Los Angeles

Montreal

New York City

Toronto

Melbourne

Shanghai

Singapore

OIL & GAS

Note: Revenue by industry, product and geography rounded to the nearest 5%

Market

growth

Market

growth

CUSTOMER EXAMPLES

A P RIL 2018

938 921 906 906 924 945 973 1,009 1,016

111 107 105 107 105 105112 113 117

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

REVENUE AND OPERATIVE EBITDA ROLLING 12 MONTHS

MARKET ENVIRONMENT

Market share

~30% in coagulants and

~20% in polymers

Main competitors in

coagulants:

• Feralco (Europe)

• Kronos (Europe)

• Chemtrade (US)

• USAlco (US)

Market share ~25% in

polymers used in shale oil

& gas

Main peers in polymers

(also in water treatment):

• SNF

• BASF

• Solenis

• Solvay (only O&G)

MUNICIPAL (40%),

customer examples

INDUSTRIAL (60%),

customer examples

Municipal Industrial

2015 2016 2017 Pulp &Paper

Group Pulp &Paper

Pulp &Paper

Group Industry &Water

Industry &Water

Industry &Water

Volatility &inflation

Mid- to long-term target

Our key actions to improve margins


12.5%

Operative EBITDA

margin 14-16%

New

bleaching

capacity in

Finland

Optimization

of operations:

majority of

savings in

logistics

Oil sandsChemical

Enhanced

Oil Recovery

12.1% New

two segment

structure

12.8%

Estimated end of 2017 run-rate 100% 100% 75% 0% Low 25% Low Low

Full run-rate by EO 2017 EO 2017 2018 2019 1-2 yrs 2-3 yrs 2-5 yrs 3-5 yrs

AkzoNobel’s

paper

chemicals

Advanced

Water

Treatment

Volatility and

inflation

A P RIL 2018

Acquisition

in China

Kemira offers stable and competitive dividend• Cash flow from operations has been partly

invested into future growth and partly distributed to shareholders as dividends

• Kemira has paid dividend every year since listing of shares in 1994

• Kemira offers attractive dividend yield

0.53 0.53 0.53 0.53 0.53 0.53 0.53

0.13

0.37

0.470.44

0.51

0.61

0.43

5.8% 4.5% 4.4% 5.4% 4.9% 4.4% 4.6%

2011 2012 2013 2014 2015 2016 2017


Dividend per share

Dividend yield

A P RIL 2018

Kemira’s dividend yield calculated using the share price at year-end

Growth investments per share

Expansion of

pulp chemicals,

Oulu (FI)

Progress in profitable growth


AcquisitionOpening / expansion of site Operational efficiencies

Opening of Tarragona

coagulant site (ES)

Acquisition BASF

AKD emulsion business

Opening of EMEA

service center

Expansion of dry

and emulsion

polyacrylamide

(US)

Opening of

Nanjing (CN)

site

Closure of

Longview (US)

AkzoNobel’s

paper chemicals

acquisition

Acquisition of Soto

Industries (US)

Closure of

Soave (IT)

Start-up of Ortigueira

(BR) sodium chlorate site

and announcement of

Joutseno (FI) expansion

Acquisition

of Polymer

Services (US)

Botlek (NL)

modernization

BOOST operational

excellence program

launch

Bradford (UK)

expansion

San Giorgio (IT)

expansion

Closures of Ottawa (CA)

and Zaramillo (ES)

Closure of site

Q416

Transportation

agreement with

Odyssey

Q117

Odyssey go-live

in North America

Two segment

structure

operational

Start-up of Joutseno

(FI) chlorate expansion

Announcement

of acquisition

via JV in China

Q114

Q217

Q314

Q414

Q115

Q215

Q415

Q116

Q214

Q317

Q216

11.3%2013 operative

EBITDA

12.5%2017 operative

EBITDA

Q315

Q316

A P RIL 2018

Q417



Latest news andfinancials

Key financial highlights

• Organic growth +7%

– Demand is growing in every market we serve

– Strong momentum continued especially inOil & Gas

• Operative EBITDA flat at reported figures, underlying development better

– Positive impact of organic growth was offset by increased variable costs and currency headwind

• Currencies EUR -7 million on EBITDA level

– Q1 was below our expectations but we expectbetter performance in the coming quarters

• Earnings per share +17%

– Finance costs were lower due to EUR 3.6 million gain from the sale of shares in power plant companies

EUR million

(except ratios)

Q1

2018

Q1

2017

Δ% FY

2017

Revenue 613.7 610.0 +1 2,486.0

Operative EBITDA 69.4 69.0 +1 311.3

of which margin 11.3% 11.3% - 12.5%

Operative EBIT 33.9 34.9 -3 170.3

of which margin 5.5% 5.7% - 6.9%

Net profit 23.0 19.8 +16 85.2

EPS, EUR 0.14 0.12 +17 0.52


Q1 2018

In big picture, operative EBITDA on positive trend

Profitability improvement measures overshadowed by pressure from raw material prices

During the last year market has moved from deflatory to inflatory environment


ROLLING 12-MONTH OPERATIVE EBITDA AND OPERATIVE EBITDA-%

262

276

285 287

294298

301 303299 297

301

311 312

12.1%12.4% 12.3%

12.1% 12.2%12.4%

12.7% 12.8%12.5%

12.3% 12.3%12.5%

10%

11%

12%

13%

14%

15%

16%

200

220

240

260

280

300

320

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018

Positive long-term operative EBITDA trend

12.5%

Pulp & Paper – good underlying market with major regional differencesMarket environment and performance

• EMEA strong and South America solid

• North America battles with shrinking market in process and functional chemicals

• In APAC growth continues but profitability a challenge

Q1 organic growth +5%

• FX offsetting reported revenue growth

Profitability drivers

• Profitability improvement to continue when price increases go through - current sales prices were not yet sufficient to cover increase in raw material prices

• In addition to sales prices, new capacity at Joutseno and Chinese acquisition are expected to improve profitability in mid-term

183

191

196 195193

192189

198

194

12.5%12.9%

13.4% 13.4%13.2% 13.0%

12.8%

13.4%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018


13.2%

ROLLING 12-MONTH OPERATIVE EBITDA AND EBITDA-% EUR million

Megatrend e-commerce drives need for packaging materialMegatrend

• Retail e-commerce grew +25% globally in 2017led by Amazon, eBay, Alibaba, etc.

• Growth in e-commerce drives packaging material production volumes

Impact on pulp and paper producers

New board capacity regularly announced, especially in APAC and EMEA, e.g.

• Chinese Nine Dragon to add 3 million tons of packaging paper capacity by June 2019

• APP to expand Guangxi (CN) mill by 2 new board machines with production of 1.8 Mton/a

• Hamburger Rieger (DE) to invest in new 500 kt/a containerboard machine

Impact on Kemira

• Kemira serves board producers with process and functional chemicals

• Kemira has strong references in conversions and new start-ups

• Also beneficial for Kemira’s pulp bleaching business as pulp is the intermediate product for board


Industry & Water – growth drivenby Oil & GasMarket demand drivers

• Fracking activity continued to grow in shale oil & gas industry

• Underlying economic growth increasing demand in industrial water treatment

• Municipal water treatment growing with the help of tighter regulation

Revenue and operative EBITDAtrend improving

• In Q1, strong +11% organic growth

938 921 906 906 924 945 973

1,009 1,016

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

111107 105 107 105 105

112 113117

11.8% 11.6% 11.5% 11.8% 11.4% 11.1% 11.5% 11.2%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018


ROLLING 12-MONTH REVENUE EUR million

ROLLING 12-MONTH OPERATIVE EBITDA AND EBITDA-% EUR million

11.5%

CEOR deal signed with Chevron

• Strategically important multi-year Chemical Enhanced Oil Recovery deal signed with Chevron

• EUR 30 million capacity addition, announced in October 2017, progressing well

• CEOR market size approximately EUR 1 billion of which EUR 500 million accessible to Kemira

• Market growth estimated to be 5% driven by enhanced production from existing fields

• Kemira is committed to provide enhanced solutions for challenging water intensive environments and technologies that can enable CEOR

• Our offering provides enhanced and improved oil recovery with focus around polymer injectivity, chemical stability, shear tolerance, thermal stability and efficacy


Group’s organic revenue growth continued


Q1 2018

Group’s organic growth +7%

• Pulp & Paper +5%

• Industry & Water +11%

Operative EBITDA margin 11.3%

• Flat compared to prior year

• Good revenue growth was offset by raw material prices and FX

• Fixed costs slightly below prior-year level

72.878.9 80.8

70.0 69.077.1

84.5 80.769.4

12.5%13.4% 13.6%

11.7% 11.3%12.5%

13.6%12.7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

610 +4%-7% 0% 614

Q1 2017 Salesvolumes

Salesprices

Currencyimpact

Acquisitions Q1 2018

+4%

REVENUE AND ORGANIC REVENUE GROWTH

(Y-ON-Y) EUR million

OPERATIVE EBITDA AND OPERATIVE EBITDA

MARGIN EUR million

11.3%

Currencies are currently headwind due to translation, transactional risk limitedCurrency exchange rates had EUR -41 million impact on revenue andEUR -7 million impact on the operative EBITDA in Q1 2018

Guidance: 10% change in our main foreign currencies would approximately haveEUR 15 million impact on operative EBITDA on an annualized basis


46% EUR

9% Others

KEMIRA REVENUE DISTRIBUTION Q1 2018 KEMIRA COST DISTRIBUTION Q1 2018

3% SEK

3% CNY

4% CAD

33% USD

10% Others

4% CNY

5% CAD

8% SEK

28% USD

45% EUR 2% BRL

SALES PRICE VS VARIABLE COST TREND

-200

-150

-100

-50

0

50

100

150

200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Brent oil, USD Sales prices* Variable costs*

SALES PRICES AND VARIABLE COSTS(CHANGE Y-O-Y)

95

-3-10

-16-20

-10

-2 -2-9

-18

-26-23

-16

-4

3

11

23

-18-23

-23 -13

0

1613

13

26

-30

-20

-10

0

10

20

30

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

Net impact on EBITDA (sales prices-variable costs)

Sales prices

Variable costs


Variable costs spiked in Q1,sales prices following

* 12-month rolling change vs previous year in EUR million

Pulp & Paper – good organic growth but profitability disappointed• Organic growth continued with volume growth at +3%, driven by chlorate capacity addition in

Finland and good underlying demand, especially in Europe

• FX headwind had -6% impact on revenue

• Profitability hampered by FX and sharp variable cost increases

• EMEA performing well but North America and China were behind

362 361 365 369 372 369 363 373 369

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

47.9 49.3 51.846.3 46.0 47.8 48.5

55.4

42.7

13.2%13.7% 14.2%

12.6% 12.4% 13.0% 13.4%14.9%

11.6%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018


+3% +1% -4% -2% 0% +1% +2% +5%




MARGIN EUR million

+5%

Industry & Water – strong growth continued

• Strong organic growth, heavy FX headwind from USD

• Oil & Gas +21% to EUR 46 million in Q1 2018, organic growth in O&G over 30%

• Profitability improving in Oil & Gas driven by sales price increases and volume growth

• Newer growth areas, such as water treatment for oil sands and CEOR, continue to be margin-dilutive until fully scaled up and optimized

220 227 231 228 238 248 259 264245

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

24.929.6 29.0

23.7 22.929.3

36.0

25.3 26.6

11.3%13.1% 12.5%

10.4%9.6%

11.8%

13.9%

9.6%10.9%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018


-7% -5% 0% +9% +15%-5% +6% +20% +11%




MARGIN EUR million

Development of selected key figures

9.8%9.9%

9.7%

9.5%

9.7%

2015 2016 2017 Q1 2017 Q1 2018

642 634694 661 678

2015 2016 2017 Q1 2017 Q1 2018

A P RIL 27 , 2018 Q1 2018 RE S ULT S 22

ALL KEY FIGURES IN EUR MILLION EXCEPT RATIOS

248271

205

1234

2015 2016 2017 Q1 2017 Q1 2018

104 118 124

20 16

78 95 66

17 7

2015 2016 2017 Q1 2017 Q1 2018

CASH FLOW FROM OPERATIONS CAPITAL EXPENDITURE EXCL. ACQUISITIONS

NET DEBT AND LEVERAGE RATIORETURN ON CAPITAL EMPLOYED

2.22.12.2 2.22.2

Growth capex

• New chlorate plant in Brazil and new chlorate line in Finland

• Capacity additions due to integration of acq.

• Polymer capacity in Italy and UK

50 60 59

53 58 65

78

95 66

2015 2016 2017


IN 2015-2017, ON AVERAGE AROUND EUR 80 MILLION INVESTED INTO GROWTH

CAPEX guidance 160-200 MEUR in 2018

Expansion Improvement Maintenance

190

CAPITAL EXPENDITURE EXCLUDING ACQUISITIONSEUR million and share of revenue

213

RECENT LARGEST VALUE CREATING

INVESTMENTS

CAPEX GUIDANCE

• In 2018, capital expenditure estimated to beEUR 160-200 million

– Includes capacity expansion in Oil & Gas

182

7.7%9.0%

7.6%

VARIABLE COST SPLIT 2017EUR 1.5 billion

TOP 10 RAW MATERIALSBY SPEND

1. Sodium hydroxide

2. Acrylonitrile

3. Colloidal silica dispersion

4. Amines

5. Aluminium hydrate

6. Petroleum solvents

7. Sodium chloride (salt)

8. Acrylic ester

9. Acrylic acid

10. Fatty acid

Top 10 account for 43%of Kemira’s raw material spend


EXPOSURE TO OIL RELATEDRAW MATERIALS

Kemira’s variable cost split and top raw materials

30%Oil & gas

related

70%Not oil

related

70%Raw materials

10%Electricity & energy

20%Logistics

A P RIL 2018

NET DEBT / OPERATIVE EBITDA AND GEARING

42% 41% 42%

54% 54%59%

2012 2013 2014 2015 2016 2017

GROSS DEBT MATURITY PROFILE,

END OF MARCH 2018 EUR 908 MILLION

(Cost of debt 2.0%)


Debt portfolio is well diversified

1.9x

2.1x 2.1x2.2x

1.8x

2.2x

532m 694m456m 486m 634m642m

NET DEBT

OPERATIVE EBITDA

A P RIL 2018

249m 311m252m 253m 303m287m

0

50

100

150

200

250

300

350

400

450

2018 2019 2020 2021 2022 2023 2024 2025

Bilaterals Bonds Undrawn RCF Undrawn Bilaterals Others

150

200

400

114

205

90

149

40

Per share figures – 5-year summary

2013 2014 2015 2016 2017

Earnings per share, EUR -0.21 0.59 0.47 0.60 0.52

Cash flow from operating activities

per share, EUR

1.32 0.49 1.63 1.78 1.35

Equity per share, EUR 7.32 7.57 7.76 7.68 7,61

Dividend per share, EUR

(*2017 proposal to the AGM)

0.53 0.53 0.53 0.53 0.53*

Share price, EUR, end of period 12.16 9.89 10.88 12.13 11.50

Market capitalization, EUR million

(excl. treasury shares)

1,849 1,504 1,654 1,848 1,752

Number of shares, million

(excl. treasury shares)

152.0 152.1 152.1 152.4 152.4

P/E ratio - 16.7 23.3 20.1 22.3

P/CF ratio 9.2 20.2 6.7 6.8 8.5

P/B ratio 1.7 1.3 1.4 1.6 1.5

Dividend yield, % 4.4 5.4 4.9 4.4 4.6

INV E S T OR P RE S E NT A T ION 26A P RIL 2018

Key figures and ratios

EUR million (except ratios) 2013 2014 2015 2016 2017 Q1 2018 Q1 2017

Revenue 2,229.1 2,136.7 2,373.1 2,363.3 2,486.0 613.7 610.0

Operative EBITDA 251.9 252.9 287.3 302.5 311.3 69.4 69.0

of which margin 11.3% 11.8% 12.1% 12.8% 12.5% 11.3% 11.3%

Operative EBIT 164.2 158.3 163.1 170.1 170.3 33.9 34.9

of which margin 7.4% 7.4% 6.9% 7.2% 6.9% 5.5% 5.7%

Net profit -25.9 95.8 77.2 97.9 85.2 23.0 19.8

Cash flow from operations 200.3 74.2 247.6 270.6 205.1 34.5 12.2

Capital expenditure,

excluding acq.133.5 140.6 181.7 212.6 190.1 23.2 36.9

Gearing at period-end 41 42 54 54 59 61 59

Inventories 170 197 207 217 224 237.1 230.2

Personnel at period-end 4,453 4,248 4,685 4,818 4,732 4,740 4,771


* Restated figures reflect the change of IAS 19, Employee Benefits

EUR million Q1 2018 Q1 2017 2017 2016

Net profit for the period 23 20 85 98

Total adjustments 42 45 204 187

Change in net working capital -31 -42 -34 29

Finance expenses -1 -4 -25 -20

Income taxes paid 1 -7 -25 -23

Net cash gen. from operating activities 34 12 205 271

Purchases of subsidiaries and acquisit. 1 0 0 2

Capital expenditure -23 -37 -190 -213

Proceeds from sale of assets 4 0 3 37

Change in long-term loan receivables 0 0 -5 1

Cash flow after investing activities 16 -25 13 98

Cash flow


EUR million Q1 2018 Q1 2017 Δ% 2017 2016 Δ%

Revenue 368.7 372.2 -1 1,476.9 1,457.3 +1

Operative EBITDA 42.7 46.0 -7 197.7 195.3 +1

margin 11.6% 12.4% - 13.4% 13.4% -

Operative EBIT 18.9 23.8 -20 104.8 111.6 -6

margin 5.1% 6.4% - 7.1% 7.7% -

Operative ROCE*, % 8.6% 9.5% - 9.0% 10.0% -

Capital expenditure 13.4 29.8 -55 138.3 125.1 +11

Cash flow after investing activities 16.7 -22.9 - 15.7 105.7 -85

KEY FINANCIALS

Pulp & Paper


*12-month rolling average

EUR million Q1 2018 Q1 2017 Δ% 2017 2016 Δ%

Revenue 245.0 237.8 +3 1,009.1 906.0 +11

Operative EBITDA 26.6 22.9 +16 113.6 107.2 +6

margin 10.9% 9.6% - 11.3% 11.8% -

Operative EBIT 15.0 11.1 +35 65.5 58.5 +12

margin 6.1% 4.7% - 6.5% 6.5% -

Operative ROCE*, % 11.8% 9.4% - 11.0% 9.7% -

Capital expenditure 9.0 3.6 +150 51.7 85.5 -39

Cash flow after investing activities -1.2 14.4 - 46.9 35.6 +32

KEY FINANCIALS

Industry & Water


*12-month rolling average

FY 2017

Revenue split by country


USA 27%

Canada 6%

Brazil 3%

Uruguay 2%

Other Americas 1%

Finland 14%Sweden 6%

Germany 5%

Poland 3%

UK 3%

Spain 2%

Other APAC 4%

South Korea 1%

China 4%

Russia 2%

Netherlands 2%

France 2%

Italy 2%

Other EMEA 9%

Norway 2%


Pulp & Paper –driving growth as market leader


Above-the-market

growth and operative

EBITDA of 14-16%

Our winning formula to continue growth


INVEST IN GROWTH

AND R&D

• Capacity additions

• More than 10 new products in

2016 and 2017

IMPROVE CUSTOMER

EXPERIENCE

• TOP 50 customers are EUR 1bn

• Customer satisfaction to 98%

MAXIMIZE CAPACITY

UTILIZATION

• Bleaching ran flat out 9 years

• Paper chemicals varying

REDUCE COMPLEXITY

• Group: 240 products out in 2016

• Around 250 products out in 2017

MANAGE FIXED COSTS

• 2017 business overheads

below 2016 level

ENHANCE

PERFORMANCE CULTURE

• New mgmt. structure

• Employee engagement – 15/16

survey items improved since 2015

Board and paper production shiftingto emerging markets


GROWTH OF

BOARD AND PAPER

PRODUCTION

BY REGION 2015-2030

55mt growth in APAC

by 2030

BIGGEST PRODUCERS

ARE:

China, USA, Japan,

Germany, India, Sweden,

Korea, Canada, Finland,

Brazil

BIGGEST GROWTH

AREAS ARE:

China, India, Indonesia,

Brazil, Russia, Vietnam

TOTAL BOARD &

PAPER PRODUCTION:

2015: 402 million tons

2030: 461 million tons

CAGR%: around 1 % / annum

Source: Pöyry

North America

2015: 82 mt

2030: 75 mt

Latin America

2015: 21 mt

2030: 31 mt

. Europe

2015: 85 mt

2030: 78 mt

Oceania

2015: 4 mt

2030: 4 mt

China

2015: 106 mt

2030: 139 mt

E. Europe

2015: 18 mt

2030: 26 mt

Africa

2015: 4 mt

2030: 6 mt

Japan

2015:26 mt

2030:21 mt

Rest of Asia

2015: 55 mt

2030: 82 mt

Strong market positions and strategic investments


REGION MARKET POSITION GROWTH TREND GROWTH STRATEGY

EMEA

North America

APAC

South America

#1

#2/3

#1

#3

Exceptional customer

experience

Transformation from paper

to board

Continue to grow with major

players (TCM) and assess

future investments

Assess future bleaching

investments

TCM = Total Chemistry Management

Board and paper production in APAC willbe bigger than Europe and North America combined by 2020

>90% of global board and paper production growth in APAC

Kemira now #1 with close to 10% share in APAC

• Revenue doubled to aroundEUR 200 million in 3 years

Fragmented market provides good potential for profitable growth

Continue to grow revenue and market share

PULP & PAPER RELEVANT CHEMICALSMARKET 2017


We have become market leader in APAC

EMEA

North

America

APAC

South America 2-3%

2-3%

-1-0%

0-1%

CAGR 2017-2022

Strong demand in pulp market creating growth opportunitiesNew pulp mill projects are driven byincreasing demand for board and tissue

• Food and liquid packaging board isgrowing particularly fast in Asia

• Pulp is produced close to wood sources andthen shipped to board, paper, and tissue mills

• Growth in board = 1 new pulp mill per year

Multiple pulp mill projects realised and expected in Northern Europe creating opportunities for Kemira to grow withthe market

In addition, a few large scale pulp millprojects expected in South America


Confirmed new capacity /

debottlenecking 2016-2020

Possible new mills 2020-2022

• Kemira’s capacity in sodium chlorate was fully utilized, hence the need for additional capacity

• Capacity doubled in Joutseno with around EUR 50 million investment

• Investment realized according to budget and start-up was ahead of schedule in early September 2017

• Part of the production will be shipped to APAC to support the growth in the region

KEMIRA BLEACHING CHEMICALS REVENUE GROWTH

2014 2015 2016 2017


Successful value creating investments –case Joutseno

+7% +10% +6% +5%

CAGR

+ 7%

Acquisition via JV in China

• Agreed to form joint venture with Tiancheng

• NewCo will produce mainly AKD wax and its key raw material fatty acid chloride (FACL)

– AKD is sizing chemical used in board and paper to createresistance against liquid absorption

– NewCo also plans to produce coagulants for water treatment

• Kemira strengthens its position and secures supply of key raw material for AKD wax

• Kemira will have 80% of NewCo

– Investment for 80% around EUR 55 million

– Closing expected in H1 2018

• Ramp-up in H2/18 after completion investments

– Good contribution to P&L in 2019 after ramp-up


AKD WAX SUPPLIED FROM YANZHOU, CHINA TO KEMIRA SITES GLOBALLY

We leverage acquisition synergieswith our global production


Telêmaco

Borba

Washougal

St. CatharinesHelsingborg

Joutseno

Nanjing

Hallam

Gunsan

Pasuruan

Wellgrow

Krems

TarragonaYanzhou

NewCo

Acquisition in China is excellentstrategic fitAcquired asset fulfills our key criteria for acquisitions

GROWTH – End-products in growing markets

APAC – Enables profitable growth in APAC

SUPPLY – Backward integr. & self-sufficiency (FACL)

SUSTAINABILITY – FACL from renewable raw material

LOCATION – Close to our existing production

PROFITABILITY – Accretive in 2019 after ramp-up


END-PRODUCTSWHERE AKD WAXIS USED

Pulp & Paper


TECHNOLOGY AND MARKET LEADER

Value chain part covered by Kemira

RAWMATERIALS

INTERMEDIATES PRODUCTS APPLICATIONSCUSTOMERINDUSTRIES

CUSTOMERS

Electricity

Sodium chloride(salt)

Crude tall oil

Cationic monomer

Acrylonitrile

Acrylic acid

Olefins

Fatty acids

Maleic anhydride

Sulfur

Tall oil rosin

AKD Wax

Isomerized olefinsAcrylamide

Sodium chlorate

Hydrogen peroxide

Polymers

Defoamers

Coagulants

Biocides

Sizing

Strength Additives

Surface additives

Colorants

Sulfuric acid

Pulping

Bleaching

Retention

Wet-end processcontrol

WQQM

Sizing

Strength

Surface treatment

Coloring

Pulp

Packagingand board

Printingand writing

Tissue

All the major global paper and pulp producers

MAIN COMPETITORS: BASF, Akzo Nobel, Solenis, Ecolab, SNF



Industry & Water -stronger platformfor profitable growth

New structure creates growth andefficiency opportunities Leveraging the full potential of new combined segment

• Full geographical reach in all regions

• Global polymer expert network

• Water treatment expertise for O&G and Mining

Structural change means faster decision making

More efficient development and roll-out of new innovations

Important part of segment’s profitability improvement

• On Group-level cost savings EUR 15-20 million


Oil &

Mining

Municipal

& Industrial

70%Water

treatment

20%Oil & Gas

10%Other

applications

Industry

& Water

The next generation of sludge treatment will focus on customer performance and value created

KemConnect Smart Dewatering combines a complete chemicals portfolio, continuous chemistry optimizationand real-time monitoring to a new business model

ADVANCED WATER TREATMENT CASE EXAMPLE

Innovation case – KemConnect Smart Dewatering


Dewatering Today Smart DewateringTomorrow

Disposal

Cost

KemConnect

Service Fee

Disposal

Cost

Customer

Net Savings

Chemical Cost

Resilient business set for growth

Growing market demand with our selective market diversification assuring growth

Kemira’s offering

• Process efficiencies: polymers that reduce energy consumption by 60% in shale oil fields

• Cost reduction: higher concentrated liquids that make offshore oil recovery more cost effective (CEOR)

• Addressing environmental regulations: tailing treatment in oil sands

New innovative technologies driving expansion


0

50

100

150

200

250

2013 2014 2015 2016 2017

REVENUE IN GROWTH INITIATIVESEUR million

REVENUE IN GROWTH INITIATIVESEUR million

25%Other

50%Shale fracking

25%Oil sands and

Chemical Enhanced

Oil Recovery Figures rounded to closest 5%

Oil

Price

+ 56%

in 2017

Our innovations make shale industrymore efficientSHALE MARKET

• Polymer market size +200M EUR and growing at double digit today

• Polymer more favorable product based on cost/performance

KEMIRA

• Provides unique chemistries, friction reducers,that reduce energy needed during hydraulic fracturing

• Volume growth over 100% in 1-9/2017

• Differentiating from competitors with innovative products


Market shares

in polymers used

for fracking

#1 market

position with

over 30%

market share

KEMIRA

Others

Competitor B

Competitor C

Competitor A

Long-term growth potential in CEOR

CHEMICAL ENHANCEDOIL RECOVERY MARKET

• CEOR market sizeEUR 1bn of whichEUR 500 million accessible to Kemira

• Market growth estimatedto be 5% driven by decline of production from existing fields

KEMIRA

• Kemira’s MaxXtract solution tailored specifically to customer needs, incorporating chemistry, equipment and services

• Kemira’s knowhow in polymers helps oil producers

• Potential for > EUR 100 million revenue in 5 years


Substantial long-term growth

potential within existing

CEOR projects and

through new projects

Oil sands has grown from 0 to aboveEUR 30m in 3 yearsOIL SANDS MARKET

• Market size is aroundEUR 400 million

• Projects are capex-heavybut developed projects are considered as sunken costs

KEMIRA

Offers total solutions to reduce environmental concerns

Customer base expanding

Revenue has grown to above EUR 30 million in 3 years

Target to more than double current revenues in 2-3 years


Companies

operating in oil

sands market (examples)

Industry & Water


TECHNOLOGY AND MARKET LEADER IN WATER TREATMENT AS WELLAS IN NICHE APPLICATIONS IN OIL & GAS

MAIN COMPETITORS

Coagulants: mainly local small companies, Feralco, USALCO, Kronos, PVS,

Polymers: SNF, Solvay, Ecolab, Solenis, BASF Value chain part covered by Kemira

INTERMEDIATES PRODUCTS APPLICATIONS SALES CHANNELS CUSTOMERS

Acrylonitrile

Acrylic acid

Sulfuric acid

Hydrochloric acid

Aluminium hydrate

Iron ore

Pickling liquor

Copperas

Various monomers

Acrylamide

Cationic monomer

Polymers (EPAM, DPAM)

Al Coagulants

Fe Coagulants

Dispersants &antiscalants

Biocides

Emulsifiers

Defoamers

Formulations

Raw water & waste water treatment

Sludge treatment

Friction reduction

Enhanced oil recovery

Tailings treatment

Mining processes

Direct sales

Distributor/reseller

Service companies

RAWMATERIALS

Municipalities

Private operators

Industrial customers

Pumpers

Oil & Gas operators

Service companies

Mine operators


Appendix


SHAREHOLDERS ON MARCH 31, 2018

% OF SHARES

1. Oras Invest 18.2%

2. Solidium (owned by State of Finland) 16.7%

3. Varma Mutual Pension Insurance Company 3.4%

4. Ilmarinen Mutual Pension Insurance Comp. 2.1%

5. Kemira Oyj 1.8%

Total number of shares 155,342,557

Foreign ownership of shares 26.4%

Total number of shareholders 35,815

KEMIRA BOARD OF DIRECTORS


Kemira – largest shareholders andBoard of Directors

JARI PAASIKIVI

Chairman

Member since 2012

Oras Invest Oy, CEO

KERTTU

TUOMAS

Vice Chairman

Member

since 2010

WOLFGANG

BÜCHELE

Member in

2009-2012 and

since 2014

KAISA

HIETALA

Member

since 2016

TIMO

LAPPALAINEN

Member since

2014

SHIRLEY

CUNNINGHAM

Member

since 2017

Kemira’s Management Board


Jukka Hakkila, Chief Legal Officer, acts as secretary of Management Board and Board of Directors.

PULP & PAPER

Kim Poulsen

OPERATIONAL

EXCELLENCE

Esa-Matti Puputti

INDUSTRY & WATER

Antti Salminen

CFO

Petri Castrén

HUMAN RESOURCES

Eeva SalonenCTO

Matthew R. Pixton

PRESIDENT AND CEO

Jari Rosendal

Priority Target Performance 2017 Comments Progress

Responsible

operations and supply

chain

Climate change

Kemira Carbon Index ≤ 80 by end

of 2020 (2012 = 100)

Sourcing of low carbon energy, especially carbon-

free electricity, continued according to plan. As part

of the E3 Plus program, four Energy Review site

visits were performed during Q1 2018. Until now, the

performed energy reviews cover more than 90% of

Kemira’s total energy consumption. Additionally,

internal Energy Management Audits were carried out

in Joutseno and Helsinki.

People Safety

Achieve zero injuries on long

term;

TRIF* 2.0 by end of 2020

Slight increase in the number of TRIs compared to

last year. Safety campaign and critical safety

standard implementation initiated this quarter should

help to reduce TRIs going forward. No single reason

for increase of incidents identified.

Supplier Management% of direct key suppliers screened

through sustainability assessments

and audits (cumulative %). The

target includes 5 sustainability audits

for highest risk** suppliers every

year, and cumulatively 25 by 2020.

Target scope expanded to cover both supplier

sustainability assessments and audits.

Corporate responsibility performance Q1 2018

55% 60%

90%

8 8

35

0

10

20

30

40

50

0%

20%

40%

60%

80%

100%

Baseline 2017 2018 Q1 Target 2022

% of Key suppliers # Audits

5.8

7.2

3.43.9

4.5

2.0

0.0

2.0

4.0

6.0

8.0

14 15 16 17 Q1 18 Target2020

10088 91 92 86 85 80

0

50

100

150

12 13 14 15 16 17 Target2020


Priority Target Performance CommentsProgress

People and

integrity

Employee engagement index

based on Voices@Kemira

biennial survey

The index at or above the external

industry norm. Participation rate in

Voices@Kemira 75 % or above.

Global people employee engagement survey

Voices@Kemira was postponed from autumn 2017

until Q2 2018, and will be conducted by IBM April 9-

20th 2018.

Leadership development

activities provided, average

Two (2) leadership development

activities per people manager

position during 2016-2020,

cumulative target 1500 by 2020.

Overall we are tracking well to achieve target.

Cumulative figure by the end of Q1 2018 is 1,147.

Corporate responsibility performance Q1 2018

58%67%

75%85%

0%

20%

40%

60%

80%

100%

2013 2015 2017 2018

Engagement Participation

494

1,036 1,147

1,500

0

500

1000

1500

2000

2016 2017 2018 Q1 Target 2020

* TRIF = Number of Total Recordable Injury Frequency per million hours, Kemira + contractor, year-to-date

** suppliers with lowest sustainability assessment score


Important information about financial figuresKemira provides certain financial performance measures (alternative performance measures) on non-GAAP basis. Kemira believes that alternative performance measures, such as organic growth*, EBITDA, operative EBITDA, cash flow after investing activities, and gearing followed by capital markets and Kemira management, provide useful information of its comparable business performance and financial position. Selected alternative performance measures are also used as performance criteria in remuneration.

Kemira’s alternative performance measures should not be viewed in isolation to the equivalent IFRS measures and alternative performance measures should be read in conjunction with the most directly comparable IFRS measures. Definitions of the alternative performance measures can be found in the Definitions of the key figures in this report, as well as at www.kemira.com > Investors > Financial information.

All the figures in this interim report have been individually rounded and consequently the sum of individual figures may deviate slightly from the sum figure presented.

* Revenue growth in local currencies, excluding acquisitions and divestments


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