Board of Directors’ Review 2012

Revenue in 2012 increased 2% to EUR 2,240.9 million (2011: EUR 2,207.2 million) supported by favorable currency exchange. Revenues in local currencies and excluding acquisitions remained stable. Operative EBIT decreased 2% to EUR 154.1 million (157.3) with a margin of 6.9% (7.1%).

Earnings per share were reduced to EUR 0.11 (0.89). Non-recurring items, related to the Fit for Growth restructuring program, to the divestment of Kemira’s food and pharmaceuticals businesses and to the streamlining of Kemira’s operations had EUR 0.66 negative impact on the EPS. Operative earnings per share decreased 13% to EUR 0.77 (0.89) mainly due to lower net profits of the specialty TiO2 producer JV Sachtleben, of which Kemira owns 39%. The result of JV Sachtleben was negatively impacted by higher raw material cost and a significant slowdown in titanium dioxide demand. The Board of Directors proposes a cash dividend of EUR 0.53 per share, equaling a total of EUR 81 million.

KEY FIGURES AND RATIOS
EUR million Jan–Dec 2012 Jan–Dec 2011
Revenue 2,240.9 2,207.2
EBITDA 178.5 259.6
EBITDA, % 8.0 11.8
Operative EBIT 154.1 157.3
EBIT 31.7 158.3
Operative EBIT, % 6.9 7.1
EBIT, % 1.4 7.2
Share of profit or loss of associates 11.2 31.0
Financing income and expenses -15.7 -20.9
Profit before tax 27.2 168,4
Net profit 21.5 140,3
EPS, EUR 0.11 0,89
Operative EPS, EUR 0.77 0,89
Capital employed* 1,673.0 1,705.0
ROCE, %* 2.6 11.1
Cash flow after investing activities 71.8 115.3
Capital expenditure 134.1 201.1
Equity ratio, % at period-end 53 51
Gearing, % at period-end 40 38
Personnel at period-end 4,857 5,006
* 12-month rolling average (ROCE, % based on the reported EBIT).

Definitions of key figures are available at www.kemira.com. Comparative 2011 figures are provided in parentheses for some financial results, where appropriate. Operating profit, excluding non-recurring items, is referred to as Operative EBIT. Operating profit is referred to as EBIT.