Tikkurila

A long and proven track record, local production and an effective distribution network provide a solid foundation for our operations. Our goal is to be the market leader in decorative paints and in selected wood and metal coatings segments in chosen markets,
and to pursue profitable growth.

Our operations are divided into two business areas. Tikkurila Deco sells decorative paints to consumers and professionals´in more than 5,000 retail sales outlets in more than 40 countries, while Tikkurila Industrial Coatings provides coating solutions to its customers in the wood and metal industries, both directly and through a Temaspeed network that covers nearly 30 countries.

The Board of Directors of Kemira proposes to the Annual General Meeting to be held March 16, 2010 that 86% of the shares of Tikkurila be distributed as dividend to Kemira’s shareholders. Tikkurila intends to seek listing of its shares on NASDAQ OMX Helsinki Ltd as from the end of March, 2010.

Strong Position in Northern and Eastern Europe

We are the leading regional paints and coatings company in Finland, Sweden and Russia, and also have a strong and established market position in several Eastern European countries and CIS countries. Our strategy has been based on a strong market share in Finland, Sweden and Russia, as well as in Russia’s neighbouring countries. In July 2008, the sales company Tikkurila JUB Romania began operating, and in August we set up a sales company in Belarus for the marketing, sales and distribution of paints.

In December 2008, we agreed to acquire a Flagship Store for the Alcro brand in Stockholm and acquired the sales company Finncolor Slovakia s.r.o.. During the beginning of 2009, a new logistics and service center is expected to be completed near Moscow.

Strategy Founded on Strong Brands

Understanding the local culture, legislation, technology and climate is vital for successful business operations. Our key objective is to be the market leader in decorative paints and in selected wood and metal coatings segments in chosen markets, and to pursue continued and profitable growth. Most of our brands represent the best known brands
in their respective market areas. Our main brands include Tikkurila, Tikkurila Coatings, Alcro, Beckers, Vivacolor and Teks. Tikkurila Deco’s success is based on strong brands and a good service concept that emphasizes proximity to customers, a large product selection and high-quality products. In Tikkurila Industrial Coatings’ business model, a local
presence and customer service have helped build long-term relationships with industrial customers.

Growing Demand for Premium Products

Rising standards of living and a booming construction business have increased the demand for premium products in Eastern Europe, with demand increasingly focusing on medium-price and premium products instead of low price products. Meanwhile, in Northern and Western Europe, the increase in consumption is moderate.

The competitive situation in the decorative paints sector is relatively stable, and major changes in our market share have taken place mainly due to acquisitions in Sweden and Russia, for example. Competition is highly fragmented in industrial coatings due to the diversity of market areas and customer segments.

The European Union’s REACH regulation may reduce the number of paint manufacturers in Europe, and diminish paint and raw material imports into the EU. Meanwhile, Directives restricting the use of solvents are expected to encourage paint users to switch over to water-borne and other safer products.

Key Figures

• Customers: Consumers, professional painters, industrial customers
• Market Position: #1 in decorative paints in Finland, Sweden and Russia
• Market Area: Northern and Eastern Europe, eastern parts of Central Europe, Southeast Europe and the CIS countries
• Products and Services: Decorative paints, wood and metal coatings, and advisory services
• Revenue: EUR 648 million
  Operating Profit (excluding nonrecurring items): EUR 59 million