1. Water – What is Hot?
MoneyTalks Forum
Technopolis Tampere 12th May 2011
Kaj Jansson, Vice President, R&D and Technology

2. Strategy
Mission:
Efficient use and reuse of water
Vision:
A leading water chemistry company
Strategy:
Improve performance of our customers’ water-intensive
processes through chemistry applications and products
• Comprehensive understanding of water challenges
• Unique customer offerings through industry specific applications
• Scale and competence benefits by utilizing common products and water chemistry
knowledge across the customer base
• Cost competitive product portfolio through globally optimized networks of efficient
production assets and suppliers
12 May 2011 2

3. A global two billion euro chemicals company
Sites: ~100 Countries: 40 Personnel: 4935
North America
Sales: 659,8 MEUR (31%)
Personnel: 1386 (28%)
Europe, Middle East and Africa Asia Pacific
Sales: 1207,2 MEUR (56%) Sales: 136,7 MEUR (6%)
Personnel: 2876 (58%) Personnel: 259 (5%)
South America
Sales: 157,2 MEUR (7%)
Personnel: 414 (9%)
Countries with Kemira sites
12 May 2011 3

4. Kemira growth targets
• Growth in revenues
• Mature markets > 3%
• Emerging markets > 7%
• Earnings before interest and taxes (EBIT), % of
revenue > 10%
• Cash flow after CAPEX and dividend > € 0M
• Gearing <60%
12 May 2011 4

5. Megatrends driving our business
World population 2050: 9.3 billion
100% increase in water
withdrawals for urban
and industrial use. 100% increase in
energy demand
70% increase in
food production
11% increase in water
withdrawals for irrigated
agriculture.
• World Energy Council: Deciding the Future – Energy policy scenarios to 2050 • GE Energy
• UN Water • How to Feed the World 2050
• Looking ahead to 2050: Scenarios of alternative investment approaches
5

6. Regional differences in water availability
Projected availability of water per capita in 2025
Population faces water
scarcity when annual
water supplies drop
below 1 000 m3 per
capita and water stress
when annual water
supplies drop below 1
700 m3 per capita
Source: Revenga et al 2000, from Pilot Analysis of Global Ecosystems: Freshwater systems. UNEP/Vital Water Graphics
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7. The gap between water demand and supply
Water demand Water supply
• Quantity up +50%, in 20 years • Scarcity due to climate change
• Quality demand rising • Infrastructure missing
8000
CAGR
7000
2% Municipal Solving the gap through e.g.
6000 • Desalination
Primary industrial
growth from China
40% • Wastewater reuse
Industry
5000 • Rainwater harvesting
Municipal
4000 Groundwater
Demand
Industry
management with
3000 regulation and tariffs
Surface
2000 water
1000
Agriculture Agriculture
0 Existing
2030 withdrawals Existing, accessible
withdrawals
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
supply 4200 Bm3
6900 Bm3
4500 Bm3
Source: Charting Our Water Future by 2030 water Resources Group, 2009. Adapted from Water 2030:
Global Water Supply and Demand model; agricultural production based on IFPRI IMPACT-WATER base case 7

8. SWEET - Center of Water Efficiency Excellence
• In 2010, Kemira and VTT established a Center of
Water Efficiency Excellence in Finland (SWEET).
• SWEET supports Kemira’s strategic target to
become a leading water chemistry company.
• Four years development programme with total
volume of 120 million euros.
• Goals achieved in 2010:
• First wave of external funding secured
• New R&D Center in Sao Paolo in operation
• Strategic partnerships formed:
• Industrial eg. Outotec, Metso Paper
• Research eg. NTU Singapore, University of
Alberta
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9. SWEET - Program Focus Areas
Water reuse
 Water reuse chemistry, including removal of microconstituents,
antiscaling, disinfection, nutrient recycling
 Chemistry for membrane applications, including enhancement of
desalination
 Chemistry for advanced wastewater treatment processes,
including membrane bioreactors
Resource efficient biomass utilization
 New chemistry concepts to enhance biomass utilization
 Efficiency and improved processes
 Enhance biomass based production
Sustainable water chemistry
 More sustainable chemistry for polymer synthesis and
applications
 Biogradable and environmental friendly concepts
 Sustainable value addition on recycled raw material value chains
12 May 2011 9

10. Energy / Water Nexus
• Do we have a wide enough view of our
operative environment in the Water /
Energy Nexus?
• No water = No energy
• No energy = No water
• Is there a sustainable role for chemistry
in this Nexus?
• Have we forgot about synergistic parts
in the water intensive sector
• Competition for water between food
and industrial sectors
• Competition lead to recycling of
biomass considered as waste – No
waste allowed!
• Waste to value (energy, water,
nutrients) = no waste remaining!
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11. Control, monitoring and diagnostics
Water efficiency
and reuse Missing tool across Kemira to
support our application-based
Separation
and Measurement, business approach
monitoring and
purification Water process control • Fragmented (techology and
technologies
Intensiveness usage)
Advanced materials
and chemicals for Sustainability
water management assessment
Capability Level
Different capability levels
(technology and resources) for
varying offering levels
• Alignement into concepts for
different levels
12 May 2011 11

12. Water reuse
Case: Finnish mine
 The cost of water is 4% of total prodcution cost
 Equal to the cost of chemicals used
Rain water
1 Million m3/a
Ore
Ore
Enrichment Enrich
processing
Water
Fresh water
6 Million m3/a
Effluent treatment Process water circulation
1 Million m3/a
Purified water
7 Million m3/a
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13. Forward osmosis
Principles
• Natural phenomena, water
diffuse from salty water to pure
water
Advantages
• Lower energy use
• Higher recovery
• Reduced brine discharge
Challenges
• Dewatering draw solution,
Draw solution with high
capacity water adsorption
Time expected to be available
commercially: in the next 10 to 20
years
12 May 2011 13

14. Is this Hot?
Maybe it is the future!
Recovering high grade water from
flue gases
• 40% of water can be recovered
• Recovered water can be used
as process water for industries
• Large scale tests has been
planned for Europe, North
Africa, South Africa and MENA
12 May 2011 14

15. Kemira’s innovation approach and focus areas
Industrial &
municipal
Global
water
megatrends,
treatment
global
markets Water Value from
waste
Customer &
market Improvements
demands Energy Waste
in water
intensive
Openness & industrial
collaboration Environment processes
Sustainable
chemistry
12 May 2011 15

16. Thank You!
More information: kaj.jansson@kemira.com
Tel. +358 50 085 2109