Kemira’s Annual General Meeting 2013Annual General Meeting, March 26, 2013Wolfgang Büchele, President and CEO

Kemira – global EUR 2.2 billion chemicals company (2012)

R&D andtechnology centres

NAFTARevenue: EUR 689 million (31%)Personnel: 1,279

EMEARevenue: EUR 1,233 million (55%)Personnel: 2,804

South AmericaRevenue: EUR 173 million (8%)Personnel: 423

Asia PacificRevenue: EUR 146 million (6%)Personnel: 351

2

Satisfactory financial performance in 2012

3

Revenue EUR 2,240.9 million (2,207.2 in 2011), +2%- Revenue in emerging markets grew 9%, driven by Paper in APAC region

Operative EBIT EUR 154.1 million (157.3), -2%- Operative EBIT margin 6.9% (7.1%)- ”Fit for Growth” launched in July 2012, to reach 10% EBIT margin in 2014

Operative earnings per share EUR 0.77 (0.89)- Lower income from associated companies had EUR 0.13 negative impact

Board of Directors proposes EUR 0.53 dividend (0.53), 69% payout ratio (60%)

Cash flow after investing activities and severance paymentsEUR 71.8 million (115.3)

4

Operating profit (EBIT) includes EUR 122 million of non-recurring items

Operative EBIT 2011 Operative EBIT 2012 Non-recurring items Operating profit (EBIT)2012

EUR million

157 154 -122 32

• ”Fit for Growth” –restructuring charges, EUR 71 million

• Divestment of food and pharmaceutical businesses, EUR 18 million

• Streamlining of Kemira’s operations, EUR 33 million

5

Kemira profitability has not reachedthe targeted EBIT margin level for the last 5 years

-15%

-10%

-5%

0%

5%

10%

15%

0%

20%

40%

60%

80%

100%

120%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Gearing Revenue growth Operative EBIT, %

Revenue growth in maturemarkets > 3%

Revenue growth in emergingmarkets > 7%

EBIT margin > 10%

Gearing < 60%

Cash flow after investmentsand dividends > 0

Revenue growth has also remained below the mid-term financial targetGearing is at the level of 40%, well below the 60% targetCash flow after investments and dividends has on average been positive

Kemira financial targets

Three strategic priorities for achievingprofitable growth

6

Simplicity

*Water quality and quantity management

Growth above market

average

EBIT >10%Substantially growing and strengthening emerging market presence

Further sharpen the strategy –strengthening focus on WQQM*

Improving efficiency

7

Kemira operative EBIT margin trend by segments

”Fit for Growth” launched to adress profitability• Product mix optimization and growth driving profitability improvement in

Paper and in Oil & Mining

• Implemented cost savings and efficiency improvements will boost marginsin Municipal & Industrial and ChemSolutions

New organization in operation since October, 2012- Accelerating growth, especially in the emerging markets and reducing complexity- New performance management system introduced to focus the whole organization

on value creation

Personnel reduction- Up to 600 employees, 12% of the total workforce

- Most of the co-determination negotiations have been accomplished

Manufacturing network optimization- Almost 20% of all production sites either decided to be closed or under review

Leaner operation- NWC* ratio target is 11% in 2014 (12.8% in 2012, 13.4% in 2011)

Sharpened strategy will be presented in April, 2013

8

Significant structural change ongoing

*Net working capital

0%5%

10%15%20%25%30%35%40%45%

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep Oct

Nov

Dec Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep Oct

Nov

Dec

2011 2012

Oras Invest and Solidium Varma and IlmarinenOther Finnish shareholders Foreign shareholders

9

Kemira share price developed almostin line with the sector in 2012

60

70

80

90

100

110

120

Dec

NovOct

Sep

AugJu

lJu

nM

ayApr

Mar

Feb

Jan

Dec

NovOct

Sep

AugJu

lJu

nM

ayApr

Mar

Feb

Jan

20122011

Kemira STOXX chemicals (Europe)

• Profit warnings in November, 2011 and in April, 2012 impacted negatively• Launch of ”Fit for Growth” has narrowed the gap against the sector index• Non-Finnish shareholding has increased since the launch of ”Fit for Growth”

Kemira share price performance Kemira ownership structure

6.6 %7.0 %7.4 %7.8 %8.2 %8.6 %9.0 %9.4 %

8/11 10/11 11/11 1/12 2/12 4/12 5/12 7/12 8/12 10/12 11/12 1/13 3/13

Operative EBIT-% FY 2013 Operative EBIT-% FY 2014

Sharpened strategy will get Kemira back to the growth track

10

2,000

2,100

2,200

2,300

2,400

2,500

8/11 10/11 11/11 1/12 2/12 4/12 5/12 7/12 8/12 10/12 11/12 1/13 3/13

Kemira revenue research analysts estimate trend

Kemira operative EBIT -% research analysts estimate trend

• Operative EBIT-% expectations increasedafter the launch of ”Fit for Growth”

• Additional confidenceneeded before the EBIT margin of 10% is in the expectations

20132014

• Analysts have become more confident in Kemira’s ability to achieve the EBIT margin target by cost reduction

• Less confidence in Kemira’s competitive advantages to achieve growth

EUR million

Sharpened strategy will enable accelerated growth

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August 2012

Initial strategic considerations Strategic agenda Sharpened

Strategy 2020

November 2012

Strategy presented in April, 2013, after BoD approval

• Market and competition

• Segments• Regions• R&D• M&A strategy

• Proposed future strategy

• Risks andcontingency plans

• Strategic roadmap including detailed measures

• Strategic business plan

Kemira in the value chain of Water Quality and Quantity Management

12

13

Strong market growth with Oil & Mining as well as in APAC and SA

Source: Management estimation based on various sources

Kemira’s strategically relevant market (EUR 27 billion in 2012) will grow to EUR 34 billion in 2020 (CAGR 3.1%)

7.7 9.3

7.79.5

9.4

13.22.0

2.3

2012 2020

Paper M&I O&M ChemSolutions

2.4%

2.7%

4.3%

1.8%

9.4 11.6

8.710.1

6.4

9.32.3

3.3

2012 2020

EMEA NAFTA APAC SA

2.7%

1.9%

4.8%

4.6%

Kemira’s strategically relevant market size per segment 2012-2020 EUR billion

Kemira strategically relevant market size per region 2012-2020 EUR billion

Kemira has clear competitive advantagesFurther portfolio renewal and efficiency improvements still required

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• One of the leading global suppliers to the paper industry with long-term commitment

• Capability to tailor products and services to customers’ needsbased on innovation and profound manufacturing capabilities

• Strong innovation platform

• High quality products and reliable supplier

Kemira strengths in its strategically relevant market:

Research and development project portfolio management

15

• Research portfolio allocation and balance managed by Technology Management Board (TMB)

• R&D management to ensure cross-segment interest in steering and working teams

• Research-projects owned mainly by the segments

• 10-20% of the R&D resources focusing on strategic projects, 40%-50% to new product

development and 30%-40% to product upgrades

Understanding customers’ needs is a key competitive advantage

16

• Kemira’s Fennobond enables yield advantage resulting in 5%-10 % lighter* endcustomer product

• Chemicals help customers to optimize their raw material use e.g fiber consumption

• Customers’ process efficiency improves by using right chemistry

*Source: MetsäBoard

…10,000 miles later

Well established in a competitive market

17

Total market share** of biggest players

Leading market position in its strategically relevant market

- Kemira has strong market position and is committed to pulp and paper businesses

- Kemira has the capability to further increase its market share in the growing oil & gas market

5 competitors

6 competitors

5 competitors

3 competitors

Fragmented competition

7 competitors

Consolidation is likely to continue

- The market consists of eight global players* and numerous local players

- Competitive landscape has changed substantially in 2012, major global competitors entering

the water quality and quantity management business, especially in the oil and mining industries

*Kemira, Ecolab, BASF, Clariant, SNF, Ashland, GE Water, AkzoNobel

0% 20% 40% 60% 80% 100%

Oil & Mining

Municipal

ChemSolutions

Paper

Industrial

Pulp

Kemira Major competitors

**2012 figures. Management estimate for Kemira’s strategically relevant markets

Kemira’s approach to sustainability

18

0

5

10

15

20

25

Total Recordable Injuries (LTA+RWC+MTC) Kemira employees and contractors # of injuries per 1 million hours, 12 month rolling average

Total EMEA Total NA Total SA Total APAC ALL

Improving occupational health and safety

19TRI = Total Recordable InjuriesLTA = Lost Time Accidents

• Lost Time Accident (LTA) rate of Kemira employees reached in 2012 an all-time low level of 2.3 accidents per 1 million hours (12 month rolling average)

• 2013 the new Safety Key Performance Indicator will be Total Recordable Injuries (TRI) rate, which includes LTA, Restricted Work Cases (RWC) and Medical Treatment Cases (MTC)

RWC = Restricted Work CasesMTC = Medical Treatment Cases

Chemical industryaverage*

*Source: US department of labor 2011

World class

Why to invest into Kemira - creating shareholder value

• ”Fit for Growth” program• New organization fosters growth in high margin businesses• Strict cash flow management

• Excellent funding position• Relevant financial assets• M&A possible also short term, if profitability and synergy criteria

are all met

• Leverage mature markets with existing strengths• Well established position in US Oil and Gas markets,

especially in shale gas• Packaging and Board, as well as Tissue driving growth in Asia

Substantialearnings

improvementpotential

Organicgrowth

Strongbalancesheet

• Strong focus on improving shareholder returns• Stable dividend yield

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Operative EBIT will be significantly higher in 2013

Revenue in local currencies and excluding divestments expected to

increase 0%-5% in 2013 compared to 2012

-Jan-Dec 2012 revenue: EUR 2,240.9 million

Operative EBIT expected to increase more than 15% in 2013

compared to 2012

- Jan-Dec 2012 operative EBIT: EUR 154.1 million

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Outlook for 2013