2012-02-08 12:00:01 CET
2012-02-08 12:00:37 CET
REGLAMENTUOJAMA INFORMACIJA
Stora Enso Oyj - Interim report (Q1 and Q3)
Stora Enso Fourth Quarter and Full Year Results 2011
Full year operational EBIT improved, dividend increase to EUR 0.30 proposed
Helsinki, Finland, 2012-02-08 12:00 CET (GLOBE NEWSWIRE) -- STORA ENSO OYJ
ANNUAL FINANCIAL STATEMENT RELEASE 8 February 2012 at 13.00 EET
Full Year 2011 (compared with 2010)
-- Operational EBIT improved to EUR 867 (EUR 797) million due to higher sales
prices.
-- Operational ROCE 10.0 (9.7)%.
-- Strong annual cash flow from operations EUR 1 034 (EUR 992) million.
Q4 2011 (compared with Q4 2010)
-- Operational EBIT decreased to EUR 145 (EUR 177) million as higher sales
prices and a changed product mix could not offset lower volumes and higher
costs.
-- Cash flow from operations improved to EUR 302 (EUR 265) million due to
working capital management.
-- Continued strong liquidity at EUR 1 134 (EUR 1 103) million.
Actions and outlook
-- New Reporting Segment structure from Q1 2012 onwards.
-- Improvement plans in Swedish mill maintenance and coated magazine paper
announced.
-- Q1 2012 sales and operational EBIT expected to be approximately in line
with Q4 2011 as combined improvements in the Business Area results are
offset by lower results in forest companies (EAI).
Summary of Fourth Quarter Results
Q4/11 2011 Q4/10 2010
--------------------------------------------------------------------------------
Sales EUR million 2 681.6 10 964.9 2 685.2 10 296.9
Operational EBITDA EUR million 242.9 1 308.0 288.8 1 216.5
Operational EBIT* EUR million 144.9 866.7 177.1 797.3
Operating profit (IFRS)** EUR million 169.5 759.3 385.8 986.2
Profit before tax excl. NRI** EUR million 141.4 639.1 161.9 705.1
Profit before tax** EUR million 110.3 420.9 364.1 885.3
Net profit excl. NRI EUR million 80.5 498.2 148.7 627.0
Net profit EUR million 100.2 342.2 313.0 769.3
EPS excl. NRI EUR 0.10 0.63 0.19 0.79
EPS EUR 0.12 0.43 0.39 0.97
CEPS excl. NRI EUR 0.28 1.33 0.37 1.46
Operational ROCE % 6.7 10.0 8.4 9.7
* The Group has adopted operational EBIT as a key operative non-IFRS measure
starting from the fourth quarter of 2011.
Operational EBIT comprises the operating profit excluding NRI and fair
valuations of the segments and Stora Enso's share of the operating profit
excluding NRI and fair valuations of its equity accounted investments (EAI).
Fair valuations include equity incentive schemes, synthetic options net of
realised and open hedges, CO2 emission rights and valuations of biological
assets related to forest assets in EAI.
** Reclassified. See details under Equity Accounted Investment reclassification.
Markets
Each segment review on pages 7-11 includes historical market demand and price
information.
Stora Enso Deliveries and Production
Q4/11 Q3/11 Q4/10 2011 2010 Change % Change Change
Q4/11-Q4 % %
/10 Q4/11-Q 2011-20
3/11 10
--------------------------------------------------------------------------------
Paper and board 2 606 2 609 2 724 10 330 10 758 -4.3 -0.1 -4.0
deliveries
(1 000 tonnes)
Paper and board 2 512 2 586 2 665 10 346 10 812 -5.7 -2.9 -4.3
production
(1 000 tonnes)
Wood products 1 177 1 234 1 259 5 072 5 198 -6.5 -4.6 -2.4
deliveries
(1 000 m3)
Market pulp 289 281 245 1 130 1 009 18.0 2.8 12.0
deliveries*
(1 000 tonnes)
Corrugated 273 256 271 1 018 1 027 0.7 6.6 -0.9
packaging
deliveries
(million m2)
----------------------------------------------------------------
*Stora Enso's net market pulp position will be about 1 million tonnes for 2012.
Breakdown of Sales Change Q4/2010 to Q4/2011
Sales
-------------------------------------------
Q4/10, EUR million 2 685.2
-------------------------------------------
Price and mix, % 2
Currency, % -
Volume, % -2
Other sales*, % -
-------------------------------------------
Total before structural changes, % -
Structural change**, % -
Total, % -
Q4/11, EUR million 2 681.6
-------------------------------------------
* Wood, energy, RCP, by-products etc.
** Asset closures, major investments, divestments and acquisitions
Key Figures
EUR Q4/11 Q3/11 Q4/10 2011 2010 Change Change Change
million % % %
Q4/11- Q4/11- 2011-2
Q4/10 Q3/11 010
--------------------------------------------------------------------------------
Sales 2 681.6 2 739.3 2 685.2 10 964.9 10 296.9 -0.1 -2.1 6.5
Operation 242.9 339.2 288.8 1 308.0 1 216.5 -15.9 -28.4 7.5
al EBITDA
Operation 144.9 224.4 177.1 866.7 797.3 -18.2 -35.4 8.7
al EBIT
Operation 5.4 8.2 6.6 7.9 7.7 -18.2 -34.1 2.6
al EBIT
margin,
%
Operating 169.5 178.6 385.8 759.3 986.2 -56.1 -5.1 -23.0
profit
(IFRS)*
Operating 6.3 6.5 14.4 6.9 9.6 -56.3 -3.1 -28.1
margin
(IFRS),
%*
Profit 141.4 113.4 161.9 639.1 705.1 -12.7 24.7 -9.4
before
tax
excl.
NRI*
Profit/lo 110.3 -14.8 364.1 420.9 885.3 -69.7 n/m -52.5
ss before
tax*
Net 80.5 78.3 148.7 498.2 627.0 -45.9 2.8 -20.5
profit
for the
period
excl.
NRI
Net 100.2 -49.9 313.0 342.2 769.3 -68.0 n/m -55.5
loss/pro
fit for
the
period
Capital 230.7 79.9 138.8 453.3 400.4 66.2 188.7 13.2
expendit
ure
Depreciat 140.9 138.4 142.5 554.9 529.4 -1.1 1.8 4.8
ion and
impairme
nt
charges
excl.
NRI
Operation 6.7 10.3 8.4 10.0 9.7 -20.2 -35.0 3.1
al ROCE,
%
Earnings 0.10 0.10 0.19 0.63 0.79 -47.4 - -20.3
per
share
(EPS)
excl.
NRI, EUR
EPS 0.12 -0.06 0.39 0.43 0.97 -69.2 n/m -55.7
(basic),
EUR
Cash 0.28 0.27 0.37 1.33 1.46 -24.3 3.7 -8.9
earnings
per
share
(CEPS)
excl.
NRI, EUR
CEPS, EUR 0.30 0.12 0.27 1.16 1.33 11.1 150.0 -12.8
Return on 6.7 -3.2 20.8 5.6 13.5 -67.8 n/m -58.5
equity
(ROE), %
Debt/equi 0.47 0.45 0.39 0.47 0.39 20.5 4.4 20.5
ty ratio
Equity 7.45 7.53 7.87 7.45 7.87 -5.3 -1.1 -5.3
per
share,
EUR
Equity 45.8 46.5 48.0 45.8 48.0 -4.6 -1.5 -4.6
ratio, %
Average 29 639 28 771 26 535 27 958 27 383 11.7 3.0 2.1
number
of
employee
s
Average
number
of
shares
(million
)
periodic 788.6 788.6 788.6 788.6 788.6
cumulativ 788.6 788.6 788.6 788.6 788.6
e
cumulativ 788.6 788.6 788.6 788.6 788.6
e,
diluted
* Reclassified. See details under Equity Accounted Investment reclassification.
Operational EBIT comprises the operating profit excluding NRI and fair
valuations of the segments and Stora Enso's share of the operating profit
excluding NRI and fair valuations of its equity accounted investments (EAI).
Fair valuations include equity incentive schemes, synthetic options net of
realised and open hedges, CO2 emission rights and valuations of biological
assets related to forest assets in EAI.
NRI = Non-recurring items. These are exceptional transactions that are not
related to normal business operations. The most common non-recurring items are
capital gains, additional write-downs or reversals of write-downs, provisions
for planned restructuring and penalties. Non-recurring items are normally
specified individually if they exceed one cent per share.
Reconciliation of Operating Profit
EUR million Q4/11 Q3/11 Q4/10 2011 2010 Change Change Change
% % %
Q4/11-Q Q4/11-Q 2011-2
4/10 3/11 010
--------------------------------------------------------------------------------
Operational EBIT 101.9 200.8 146.4 753.1 687.1 -30.4 -49.3 9.6
from Segments
Equity accounted 43.0 23.6 30.7 113.6 110.2 40.1 82.2 3.1
investments (EAI),
operational1)
------------------------------------------------------------
Operational EBIT 144.9 224.4 177.1 866.7 797.3 -18.2 -35.4 8.7
Fair valuations, -1.3 -34.6 -7.1 -31.9 31.7 81.7 96.2 -200.6
Group2)
Equity accounted 46.9 -11.2 -1.7 4.4 -38.3 n/m n/m 111.5
investments (EAI),
non-operational
items3)
Non-recurring -21.0 - 217.5 -79.9 195.5 -109.7 -100.0 -140.9
items, Group
------------------------------------------------------------
Operating Profit 169.5 178.6 385.8 759.3 986.2 -56.1 -5.1 -23.0
(IFRS)4)
------------------------------------------------------------
1) Group's share of operating profits of EAI excluding non-recurring items and
fair valuations.
2) Fair valuations include equity incentive schemes, synthetic options net of
realised and open hedges, and CO2 emission rights.
3) EAI non-operational items include valuations of biological assets related to
forest assets in EAI, non-recurring items of EAI and Group's share of tax and
net financial items of EAI.
4) Reclassified. See details under Equity Accounted Investment reclassification.
Q4/2011 Results (compared with Q4/2010)
Operational EBIT at EUR 145 million was EUR 32 million lower than a year ago.
This represents an operational EBIT margin of 5.4% (6.6%).
Price increases in local currencies and a changed product mix increased
operational EBIT by EUR 63 million, but lower deliveries and increased
production curtailments to reduce inventories decreased operational EBIT by EUR
55 million. Paper and board production was curtailed by 13% (7%) and sawnwood
production by 15% (7%) of capacity to manage inventories.
The costs of chemicals and energy were higher than a year ago, but productivity
improvements and cost savings partly compensated for the cost increases. The
overall net impact of the increase in variable costs in local currencies was a
negative EUR 28 million. The net impact of market pulp on EBIT included in the
above analysis, was EUR 11 million higher than a year ago. The Group's external
pulp deliveries were higher and pulp purchases lower than in the fourth quarter
of 2010.
Fixed costs were EUR 15 million higher than in the fourth quarter of 2010
mainly in consumer board, industrial packaging and magazine paper.
Exchange rates had a negative net impact on sales and costs totalling EUR 9
million, after hedges.
The share of the operational results of equity accounted investments amounted
to EUR 43 million, which was EUR 12 million greater than a year ago, with the
main contributions from Bergvik Skog and Veracel.
The Group recorded as non-recurring items (NRI) a negative EUR 21 million at
operating profit level and a negative EUR 10 million at financial item level in
the fourth quarter of 2011. In addition, there are other NRI-type items related
to restructuring and impairment that do not fulfil the Group NRI criteria and
are netted out at Group level.
Net financial items were EUR -59 (EUR -22) million. Net interest expenses
increased from EUR 26 million to EUR 35 million. Net foreign exchange losses
amounted to EUR 3 (gain EUR 2) million. The net loss from other financial items
totalled EUR 21 (gain EUR 2) million, including a EUR 10 million write-down of
loan and interest receivables. The remaining loss of EUR 11 million was mainly
related to the fair valuations and settlements of interest rate derivatives.
Group capital employed was EUR 8 706 million on 31 December 2011, a net
increase of EUR 41 million on a year earlier. Group capital employed increased
primarily due to a EUR 200 million increase in the value of equity accounted
investments resulting mainly from an equity injection into the Montes del Plata
pulp mill project and profits from the equity accounted investments, a EUR 90
million increase in operative working capital due to an increase in inventory
value, a EUR 90 million decrease in net tax liabilities and EUR 70 million from
the Inpac acquisition. Decreases were primarily due to a EUR 240 million
reduction in the valuation of PVO resulting from lower anticipated future
electricity prices and EUR 140 million from capital expenditure being lower
than depreciation. The analysis above excludes the impact of foreign exchange
rates, which decreased capital employed by EUR 40 million mainly due to
weakening of the Brazilian Real.
January-December 2011 Results (compared with the same period in 2010)
Sales increased by EUR 668 million year-on-year to EUR 10 965 million.
Operational EBIT increased by EUR 69 million to EUR 867 million. This
represents an operational EBIT margin of 7.9% (7.7%).
Significantly higher sales prices in local currencies and changed product mix
increased operational EBIT by EUR 590 million and much more than compensated
for slightly lower volumes, partly due to structural changes, that decreased
operational EBIT by EUR 77 million. Higher fixed and variable costs, especially
for wood, chemicals, RCP and energy, were partly compensated by productivity
improvements and cost saving actions and decreased operational EBIT by EUR 396
million. Exchange rates had a net negative impact on sales and on costs
totalling EUR 23 million after hedges, and depreciation increased by EUR 27
million.
Net financial items were EUR -338 (EUR -101) million. Net interest expenses
increased from EUR 90 million to EUR 122 million. Net foreign exchange losses
amounted to EUR 27 (gain EUR 1) million and the net loss from other financial
items totalled EUR 189 (EUR 12) million, including a negative EUR 128 million
provision due to the NewPage lease guarantee and a EUR 10 million write-down of
receivables.
Q4/2011 Results (compared with Q3/2011)
Sales were EUR 58 million down on the previous quarter at EUR 2 682 million.
Operational EBIT was EUR 80 million lower than in the previous quarter at EUR
145 million. Higher fixed costs, lower volumes and lower sales prices in local
currencies were partly offset by lower variable costs.
Capital Structure
EUR million 31 Dec 30 Sep 30 June 31 Mar 31 Dec
11 11 11 11 10
--------------------------------------------------------------------------------
Operative fixed assets 6 120.4 6 155.1 6 289.1 6 394.2 6 445.2
Equity accounted investments 1 913.1 1 726.8 1 716.0 1 725.4 1 744.0
Operative working capital, net 1 504.6 1 586.5 1 653.0 1 530.3 1 399.3
Non-current interest-free -486.1 -435.6 -450.9 -473.2 -493.9
items, net
------------------------------------------------
Operating Capital Total 9 052.0 9 032.8 9 207.2 9 176.7 9 094.6
Net tax liabilities -346.4 -367.4 -368.2 -408.6 -429.9
------------------------------------------------
Capital Employed 8 705.6 8 665.4 8 839.0 8 768.1 8 664.7 ------------------------------------------------
Equity attributable to Company 5 872.7 5 934.5 6 229.2 6 318.1 6 202.9
shareholders
Non-controlling interests 87.1 83.4 49.1 49.0 51.8
Net interest-bearing 2 745.8 2 647.5 2 560.7 2 401.0 2 410.0
liabilities
------------------------------------------------
Financing Total 8 705.6 8 665.4 8 839.0 8 768.1 8 664.7
------------------------------------------------
Financing Q4/2011 (compared with Q3/2011)
Cash flow from operations was strong at EUR 302 (EUR 362) million due to
working capital management. Cash flow after investing activities was EUR 115
(EUR 282) million. Interest-bearing net liabilities of the Group increased by
EUR 98 million to EUR 2 746 million due to strengthening of the US dollar.
Total unutilised committed credit facilities were unchanged at EUR 700 million,
and cash and cash equivalents net of overdrafts remained strong at EUR 1 134
million, which is EUR 47 million less than for the previous quarter. In
addition, Stora Enso has access to various long-term sources of funding up to
EUR 750 million.
In December 2011 Stora Enso signed a EUR 150 million long-term loan agreement
with the European Investment Bank (EIB) to finance the new containerboard
machine investment at Ostrołęka Mill in Poland announced in January 2011. The
loan matures in 2023 and was fully undrawn at year end 2011.
The debt/equity ratio at 31 December 2011 was 0.47 (0.45) following a decrease
of EUR 190 million in the PVO valuation. The currency effect on owners' equity
net of the hedging of equity translation risks was positive EUR 86 million.
Cash Flow
EUR million Q4/11 Q3/11 Q4/10 2011 2010 Change Change Change
% % %
Q4/11-Q Q4/11-Q 2011-2
4/10 3/11 010
--------------------------------------------------------------------------------
Operating 169.5 178.6 385.8 759.3 986.2 -56.1 -5.1 -23.0
profit*
Depreciation 51.0 143.2 -105.2 492.0 213.0 148.5 -64.4 131.0
and other
non-cash
items*
Change in 81.8 40.1 -16.1 -217.0 -207.1 n/m 104.0 -4.8
working
capital
-----------------------------------------------------------------
Cash Flow from 302.3 361.9 264.5 1 034.3 992.1 14.3 -16.5 4.3
Operations
Cash spent on -187.0 -79.9 -138.8 -409.6 -400.4 -34.7 -134.0 -2.3
fixed and
biological
assets
-----------------------------------------------------------------
Cash Flow 115.3 282.0 125.7 624.7 591.7 -8.3 -59.1 5.6
after
Investing
Activities
* Reclassified. See details under Equity Accounted Investment reclassification.
Capital Expenditure for January-December 2011
Investments in fixed and biological assets in 2011 totalled EUR 453 million,
which is 82% of depreciation in the same period. In addition, the equity
injection into Montes del Plata, a joint venture in Uruguay, was EUR 129
million in 2011. Slightly more than 80% of capital expenditure including equity
injections was allocated for the strategic high-return growth areas in 2011. At
the year end EUR 43 million of investments in fixed and biological assets
remained unpaid, resulting in EUR 410 million capital expenditure cash outflow
in 2011.
The capital expenditure forecast for the Group for the full year 2012 is
approximately EUR 570 million. Annual depreciation in 2012 will be about EUR
570 million. In addition, the equity injection into Montes del Plata, a joint
venture in Uruguay, will be approximately EUR 150 million in 2012.
The main projects during 2011 were the Ostrołęka containerboard machine, the
Skoghall woodyard investment, the CLT production unit at Ybbs and completion of
power plants.
Near-term Outlook
The business environment in the first few months of 2012 is predicted to remain
challenging. Uncertainty and limited visibility are expected to persist in
European markets. The anticipated reduction in variable costs should
progressively become apparent in the Group's results.
Group sales and operational EBIT for the first quarter of 2012 are forecast to
be approximately in line with the fourth quarter of 2011 as combined
improvement in the Business Area results is offset by lower results in forest
companies (EAI).
Segments Q4/11 compared with Q4/10
Consumer Board
Consumer Board manufactures all major types of consumer board, such as liquid
packaging board, food service board, graphical board and cartonboard for
packaging food, cigarettes, pharmaceuticals, cosmetics and luxury products.
EUR million Q4/11 Q3/11 Q4/10 2011 2010 Change % Change % Change
Q4/11-Q4 Q4/11-Q3 %
/10 /11 2011-20
10
--------------------------------------------------------------------------------
Sales 571.4 626.2 611.5 2 506.8 2 314.7 -6.6 -8.8 8.3
Operational 64.0 102.2 90.1 423.1 410.4 -29.0 -37.4 3.1
EBITDA*
Operational 27.7 64.4 52.1 272.4 277.1 -46.8 -57.0 -1.7
EBIT*
% of sales 4.8 10.3 8.5 10.9 12.0 -43.5 -53.4 -9.2
Operational 7.7 17.5 14.9 18.6 21.1 -48.3 -56.0 -11.8
ROOC, %**
Paper and 532 583 591 2 336 2 326 -10.0 -8.7 0.4
board
deliveries,
1 000 t***
Paper and 515 575 596 2 338 2 367 -13.6 -10.4 -1.2
board
production,
1 000 t***
Market pulp 136 112 105 466 388 29.5 21.4 20.1
deliveries,
1 000 t
-------------------------------------------------------------------
* Excluding non-recurring items and fair valuations ** Operational ROOC = 100%
x Operational EBIT/Average operating capital
*** Excluding pulp
-- Slightly higher board sales prices than a year ago could not fully
compensate for higher costs and lower board volumes.
-- The
pre-commercial plant at Imatra in Finland to produce microfibrillated
cellulose (MFC) for lighter and stronger materials for renewable packaging
and potential future applications started production on schedule.
-- A major breakdown of the wood drum in Fors Mill was one of the key reasons
for increased costs in the fourth quarter of 2011.
-- Several cost and efficiency improvement actions have been implemented, to
be enhanced by the planned Swedish maintenance actions.
Markets
Product Market Demand Q4/11 Demand Q4/11 Price Q4/11 Price Q4/11
compared with compared with compared with compared with
Q4/10 Q3/11 Q4/10 Q3/11
--------------------------------------------------------------------------------
Consume Europe weaker weaker higher stable
r board
--------------------------------------------------------------------------------
Industrial Packaging
Industrial Packaging manufactures corrugated packaging and containerboard,
cores and coreboard, and also paper sacks, and sack and kraft paper.
EUR million Q4/11 Q3/11 Q4/10 2011 2010 Change % Change % Change
Q4/11-Q4 Q4/11-Q3 %
/10 /11 2011-20
10
--------------------------------------------------------------------------------
Sales 260.6 253.8 241.7 997.8 949.5 7.8 2.7 5.1
Operational 29.6 34.3 34.3 129.4 114.0 -13.7 -13.7 13.5
EBITDA*
Operational 13.7 20.1 22.0 72.7 65.5 -37.7 -31.8 11.0
EBIT*
% of sales 5.3 7.9 9.1 7.3 6.9 -41.8 -32.9 5.8
Operational 7.6 11.6 14.2 10.8 11.0 -46.5 -34.5 -1.8
ROOC, %**
Paper and board 187 189 195 775 864 -4.1 -1.1 -10.3
deliveries, 1
000 t
Paper and board 186 193 194 780 871 -4.1 -3.6 -10.4
production, 1
000 t
Corrugated 273 256 271 1 018 1 027 0.7 6.6 -0.9
packaging
deliveries,
million m2
Corrugated 264 251 272 1 006 1 033 -2.9 5.2 -2.6
packaging
production,
million m2
---------------------------------------------------------------
* Excluding non-recurring items and fair valuations ** Operational ROOC = 100%
x Operational EBIT/Average operating capital
-- Higher sales prices in local currencies than a year ago did not fully
offset higher costs and lower volumes.
-- The plans to increase cost competitiveness and respond to market demand by
restructuring core and coreboard operations, and by streamlining corrugated
packaging production have been partially completed.
The
completed plans
will affect 104 employees.
Markets
Product Market Demand Q4/11 Demand Q4/11 Price Q4/11 Price Q4/11
compared with compared with compared compared with
Q4/10 Q3/11 with Q4/10 Q3/11
--------------------------------------------------------------------------------
Industria Europe weaker slightly slightly slightly lower
l weaker higher
packagin
g
--------------------------------------------------------------------------------
Newsprint and Book Paper
Newsprint and Book Paper manufactures a wide range of standard and improved
newsprint, and book and directory paper grades.
EUR Q4/11 Q3/11 Q4/10 2011 2010 Change % Change % Change %
million Q4/11-Q4/ Q4/11-Q3 2011-201
10 /11 0
--------------------------------------------------------------------------------
Sales 338.6 330.7 326.2 1 318.4 1 261.6 3.8 2.4 4.5
Operationa 52.8 56.6 20.6 205.2 80.6 156.3 -6.7 154.6
l EBITDA*
Operationa 28.5 33.6 -2.7 115.6 -10.8 n/m -15.2 n/m
l EBIT*
% of sales 8.4 10.2 -0.8 8.8 -0.9 n/m -17.6 n/m
Operationa 12.2 14.5 -1.2 12.2 -1.1 n/m -15.9 n/m
l ROOC,
%**
Paper 606 574 658 2 319 2 576 -7.9 5.6 -10.0
deliverie
s, 1 000 t
Paper 595 577 619 2 311 2 554 -3.9 3.1 -9.5
productio
n, 1 000 t
---------------------------------------------------------------------
* Excluding non-recurring items and fair valuations ** Operational ROOC = 100%
x Operational EBIT/Average operating capital
· Clearly higher sales prices in local currencies than a year ago more
than offset slight cost increases.
· Volumes were slightly lower than a year ago as newsprint production
at Maxau Mill in Germany permanently ceased at the end of November 2010. The
capacity reductions in 2010 at this mill and Varkaus Mill in Finland enabled
high capacity utilisation in 2011.
· Industry inventories were slightly lower than a year ago and
significantly lower than in the previous quarter.
· Plans to streamline Swedish maintenance operations were announced.
Markets
Produc Market Demand Q4/11 Demand Q4/11 Price Q4/11 Price Q4/11
t compared with compared with compared with compared with
Q4/10 Q3/11 Q4/10 Q3/11
--------------------------------------------------------------------------------
Newspr Europe significantly stronger significantly stable
int weaker higher
Newspr Overse weaker stable significantly stable
int as higher
--------------------------------------------------------------------------------
Magazine Paper
Magazine Paper manufactures uncoated magazine paper mainly for periodicals and
advertising, and coated matt, silk and glossy magazine paper for specialist and
general interest magazines, supplements, home shopping catalogues and magazine
covers.
EUR million Q4/11 Q3/11 Q4/10 2011 2010 Change % Change % Change
Q4/11-Q4 Q4/11-Q3 %
/10 /11 2011-20
10
--------------------------------------------------------------------------------
Sales 533.4 562.0 547.5 2 094.6 2 054.2 -2.6 -5.1 2.0
Operational 44.7 74.1 47.5 231.8 191.9 -5.9 -39.7 20.8
EBITDA*
Operational 17.7 48.3 19.5 128.1 90.9 -9.2 -63.4 40.9
EBIT*
% of sales 3.3 8.6 3.6 6.1 4.4 -8.3 -61.6 38.6
Operational 5.3 14.4 5.7 9.5 7.1 -7.0 -63.2 33.8
ROOC, %**
Paper 635 641 659 2 356 2 396 -3.6 -0.9 -1.7
deliveries,
1 000 t***
Paper 591 619 618 2 369 2 398 -4.4 -4.5 -1.2
production,
1 000 t***
Market pulp 120 131 113 530 526 6.2 -8.4 0.8
deliveries,
1 000 t
-------------------------------------------------------------------
* Excluding non-recurring items and fair valuations ** Operational ROOC = 100%
x Operational EBIT/Average operating capital
*** Excluding pulp
-- Higher paper sales prices in local currencies
than a year ago
did not fully offset higher costs and slightly lower volumes.
-- Industry inventories for coated magazine paper were slightly lower than a
year ago and significantly lower than in the previous quarter.
-- Industry inventories for uncoated magazine paper were slightly higher than
a year ago and significantly lower than in the previous quarter.
-- Restructuring of coated magazine paper operations at Corbehem Mill in
France, Veitsiluoto Mill in Finland and Kabel Mill in Germany is planned to
increase cost competitiveness.
-- Plans to streamline Swedish maintenance operations were announced.
Markets
Product Market Demand Q4/11 Demand Q4/11 Price Q4/11 Price Q4/11
compared with compared with compared compared
Q4/10 Q3/11 with Q4/10 with Q3/11
--------------------------------------------------------------------------------
Coated Europe significantly stronger significantly stable
magazine weaker higher
paper
Coated Latin significantly significantly stable slightly
magazine Ameri weaker weaker lower
paper ca
Uncoated Europe weaker slightly higher stable
magazine stronger
paper
Uncoated China significantly significantly slightly slightly
magazine weaker weaker higher lower
paper
--------------------------------------------------------------------------------
Fine Paper
Fine Paper manufactures high quality graphic and office paper for printers and
publishers, merchants, envelope converters, office equipment manufacturers and
office suppliers.
EUR million Q4/11 Q3/11 Q4/10 2011 2010 Change % Change % Change
Q4/11-Q4 Q4/11-Q3 %
/10 /11 2011-20
10
--------------------------------------------------------------------------------
Sales 527.8 529.6 533.5 2 152.9 2 125.7 -1.1 -0.3 1.3
Operational 47.7 60.4 90.6 282.0 344.5 -47.4 -21.0 -18.1
EBITDA*
Operational 25.4 37.8 67.6 191.8 259.4 -62.4 -32.8 -26.1
EBIT*
% of sales 4.8 7.1 12.7 8.9 12.2 -62.2 -32.4 -27.0
Operational 10.9 15.8 29.1 20.4 27.4 -62.5 -31.0 -25.5
ROOC, %**
Paper 646 622 621 2 544 2 596 4.0 3.9 -2.0
deliveries,
1 000 t***
Paper 625 622 638 2 548 2 622 -2.0 0.5 -2.8
production,
1 000 t***
Market Pulp 33 38 27 134 95 22.2 -13.2 41.1
deliveries,
1 000 t
-------------------------------------------------------------------
* Excluding non-recurring items and fair valuations ** Operational ROOC = 100%
x Operational EBIT/Average operating capital
*** Excluding pulp
-- Higher sales volumes
than a year ago
did not compensate for clearly lower sales prices in local currencies and
higher variable costs for energy and chemicals.
-- Product swaps between coated fine paper mills were completed ahead of
schedule, reducing the standard woodfree coated fine paper production
capacity by approximately 140 000 tonnes per year. Standard woodfree coated
fine paper production was centralised at Oulu Mill in Finland and Uetersen
Mill in Germany is increasing its speciality paper production as planned.
-- Negotiations concerning the restructuring plans announced on 3 May 2011
have been concluded at all sites. The targeted cost savings are expected to
be achieved by the end of the third quarter of 2012.
-- Industry inventories for coated fine paper were significantly lower than a
year ago and slightly higher than in the previous quarter.
-- Industry inventories for uncoated fine paper were slightly higher than a
year ago and significantly lower than in the previous quarter.
Markets
Product Market Demand Q4/11 Demand Q4/11 Price Q4/11 Price Q4/11
compared with compared with compared compared with
Q4/10 Q3/11 with Q4/10 Q3/11
--------------------------------------------------------------------------------
Coated Europe slightly stable lower slightly lower
fine weaker
paper
Coated China stronger slightly significantly lower
fine stronger lower
paper
Uncoated Europe slightly stable slightly slightly lower
fine weaker higher
paper
--------------------------------------------------------------------------------
Wood Products
Wood Products manufactures wood-based products for construction and interior
decoration, and solid biofuels for the energy sector. Its recyclable products
are made from high quality renewable European pine or spruce.
EUR Q4/11 Q3/11 Q4/10 2011 2010 Change % Change % Change %
million Q4/11-Q4/ Q4/11-Q3/ 2011-201
10 11 0
--------------------------------------------------------------------------------
Sales 382.0 414.0 410.3 1 671.1 1 588.7 -6.9 -7.7 5.2
Operation 15.4 19.6 21.1 102.3 110.7 -27.0 -21.4 -7.6
al
EBITDA*
Operation 6.0 9.8 10.2 62.8 70.9 -41.2 -38.8 -11.4
al EBIT*
% of 1.6 2.4 2.5 3.8 4.5 -36.0 -33.3 -15.6
sales
Operation 4.2 6.7 6.8 10.9 12.3 -38.2 -37.3 -11.4
al ROOC,
%**
Deliverie 1 143 1 199 1 223 4 920 5 057 -6.5 -4.7 -2.7
s, 1 000
m3
----------------------------------------------------------------------
* Excluding non-recurring items and fair valuations ** Operational ROOC = 100%
x Operational EBIT/Average operating capital
-- Slightly lower costs than a year ago did not fully offset slightly lower
sales prices and volumes.
-- Operations improvement and restructuring actions continued, including
closure of Kopparfors Sawmill in Sweden and its pellet mill. Improvements
will continue in 2012.
-- Restructuring of part of the further processing operations at Honkalahti
Sawmill in Finland was completed.
-- The pellet plant at Imavere in Estonia started up on schedule during the
fourth quarter of 2011.
-- The share of value-added products increased to 33% in 2011 (31% in 2010)
and further development continues in Building Solutions and Industrial
Components.
-- New production of a more eco-friendly and non-toxic product called Q-Treat
for durability and longevity in outdoor use was started at Uimaharju
Sawmill in Finland. The new treatment makes wood hard, fire-resistant,
decay-resistant and weatherproof.
· Industry inventories were slightly higher than a year ago and slightly
lower than in the previous quarter.
Markets
Produc Market Demand Q4/11 Demand Q4/11 Price Q4/11 Price Q4/11
t compared compared compared compared
with Q4/10 with Q3/11 with Q4/10 with Q3/11
--------------------------------------------------------------------------------
Wood Europe weaker weaker slightly slightly
produ lower lower
cts
Wood Asia, Middle significantly slightly lower slightly
produ East and weaker weaker lower
cts North Africa
--------------------------------------------------------------------------------
Short-term Risks and Uncertainties
The main short-term risks and uncertainties are related to continuing economic
uncertainty and its potential impact on demand for the Group's products.
Energy sensitivity analysis for 2012: the direct effect on 2012 operational
EBIT of a 10% increase in electricity, heat, oil and other fossil fuel market
prices would have a negative impact of approximately EUR 25 million, after the
effect of hedges.
Wood sensitivity analysis for 2012: the direct effect on 2012 operational EBIT
of a 10% increase in wood prices would have a negative impact of approximately
EUR 219 million.
Pulp sensitivity analysis for 2012: the direct effect on 2012 operational EBIT
of a 10% increase in yearly average pulp prices would have a positive impact of
approximately EUR 53 million.
A decrease of energy, wood or pulp prices would have the opposite impact.
Foreign exchange rates sensitivity analysis for the next twelve months: the
direct effect on operational EBIT of a 10% strengthening in the value of the US
dollar, Swedish krona and British pound against the euro would be approximately
positive EUR 120 million, negative EUR 87 million and positive EUR 60 million
annual impact, respectively. Weakening of the currencies would have the
opposite impact. These numbers are before the effect of hedges and assuming no
changes occur other than a single currency exchange rate movement.
Fourth Quarter Events
In November Stora Enso announced the appointments to its Nomination Board.
Veracel
On 11 July 2008 Stora Enso announced that a federal judge in Brazil had issued
a decision claiming that the permits issued by the State of Bahia for the
operations of Stora Enso's equity accounted investment Veracel were not valid.
The judge also ordered Veracel to take certain actions, including reforestation
with native trees on part of Veracel's plantations and a possible BRL 20
million (EUR 9 million) fine. Veracel disputes the decision and has filed an
appeal against it. Veracel operates in full compliance with all Brazilian laws
and has obtained all the necessary environmental and operating licences for its
industrial and forestry activities from the competent authorities. In November
2008 a Federal Court suspended the effects of the decision. Veracel has not
recorded any provision for the reforestation or the possible fine.
On 30 September 2009 a judge in the State of Bahia issued an interim decision
ordering the State Government of Bahia not to grant Veracel further plantation
licences in the municipality of Eunápolis in response to claims by a state
prosecutor that Veracel's plantations exceeded the legal limits, which Veracel
disputes. Veracel's position is supported by documentation issued by the State
environmental authority.
Class Action Lawsuits in USA
In the context of magazine paper sales in the USA in 2002 and 2003, Stora Enso
was sued in a number of class action (and other civil) lawsuits filed in the
USA by various magazine paper purchasers that claimed damages for alleged
antitrust violations. On 14 December 2010 a US federal court granted a motion
for summary judgement that Stora Enso had filed seeking dismissal of the direct
purchaser class action claims. The ruling, which the plaintiffs have appealed,
means that the court has ruled in favour of Stora Enso and found the direct
purchaser class action claims to be without legal foundation. Further, most of
the indirect purchaser actions have been dismissed by a consent judgement,
subject, however, to being reinstated if the plaintiffs' appeal in the direct
cases is successful. The ruling, if it stands on appeal, will also provide a
strong legal basis for final dismissal of all remaining civil cases. No
provisions have been made in Stora Enso's accounts for these lawsuits.
Legal Proceeding in Finland
On 3 December 2009 the Finnish Market Court fined Stora Enso for competition
law infringements in the market for roundwood in Finland from 1997 to 2004.
Stora Enso did not appeal against the ruling.
On 31 March 2011 Metsähallitus of Finland initiated legal proceedings against
Stora Enso, UPM and Metsäliitto claiming compensation for damages allegedly
suffered due to the competition law infringements amounting altogether to EUR
283 million. In December 2011 Metsähallitus additionally included damages
allegedly suffered in 2005 in its claim. Metsähallitus also decreased its total
claim to EUR 159 million and its secondary claim against Stora Enso to EUR 87.2
million.
In addition, before the end of 2011 some Finnish municipalities and private
forest owners initiated similar legal proceedings. These claims are waiting to
be processed and formally served by the Court. The total amount claimed by all
these defendants is estimated to be less than EUR 50 million.
Stora Enso denies that Metsähallitus, and other plaintiffs, suffered any
damages whatsoever and will forcefully defend itself. No provisions have been
made in Stora Enso's accounts for this lawsuit.
Changes in Group Management
Juan Bueno was appointed to head the Group's operations in Latin America and as
a member of the Group Executive Team as of 1 April 2011.
Personnel
On 31 December 2011 there were 29 505 employees in the Group, 3 126 more than
at the end of 2010 following the Inpac acquisition, which increased the number
of employees by 3 600. The average number of employees in 2011 was 27 958,
which was 575 higher than the average number in 2010.
Share Capital
During the quarter, the conversion of 250 A shares into R shares was recorded
in the Finnish trade register on 15 November 2011.
On 31 December 2011 Stora Enso had 177 148 772 A shares and 612 389 727 R
shares in issue of which the Company held no A shares and 918 512 R shares with
a nominal value of EUR 1.6 million. The holding represents 0.12% of the
Company's share capital and 0.04% of the voting rights.
Events after the Period
The conversion of 1 000 A shares into R shares was recorded in the Finnish
trade register on 16 January 2012.
On 17 January 2012 Stora Enso announced that it was renewing its Business Area
and Reporting Segment structure. The changes in the Business Areas and
management took effect as of 17 January 2012. The Company now has four Business
Areas and Reporting Segments:
Biomaterials, headed by EVP Juan Bueno;
Printing and Reading, headed by EVP Juha Vanhainen;
Renewable Packaging, headed by EVP Mats Nordlander;
Building and Living, headed by EVP Hannu Kasurinen.
The first financial report according to the new reporting segment structure
will be the first quarter 2012 Interim Review to be released on 24 April 2012.
Historical figures according to the new reporting structure will be published
on Stora Enso's Capital Markets Day on 22 March 2012.
Annual General Meeting
The Annual General Meeting (AGM) will be held at 16.00 (Finnish time) on
Tuesday 24 April 2012 at Marina Congress Center, Katajanokanlaituri 6,
Helsinki, Finland.
The agenda of the AGM and proposals on the agenda of the AGM, as well as the
AGM notice will be available on Stora Enso Oyj's website at
www.storaenso.com/agm. Stora Enso Oyj's Annual Report including the Report of
the Board of Directors and the Auditor's Report on Stora Enso Oyj will be
published on Stora Enso Oyj's website www.storaenso.com/investors during the
week commencing Monday 20 February 2012. The proposals on the agenda of the AGM
and the other above-mentioned documents will also be available at the AGM.
Copies of these documents and the AGM notice will be sent to shareholders upon
request. The minutes of the AGM will be available on Stora Enso Oyj's website
www.storaenso.com/agm from Tuesday 8 May 2012.
The Board of Directors' Proposal for the Payment of Dividend
The Board of Directors has decided to propose to the AGM that the Company
distribute a dividend of EUR 0.30 per share for the year 2011.
The dividend would be paid to shareholders who on the record date of the
dividend payment, 27 April 2012, are recorded in the shareholders' register
maintained by Euroclear Finland Ltd. or in the separate register of
shareholders maintained by Euroclear Sweden AB for Euroclear Sweden registered
shares. Dividends payable for Euroclear Sweden registered shares would be
forwarded by Euroclear Sweden AB and paid in Swedish krona. Dividends payable
to ADR holders would be forwarded by Deutsche Bank Trust Company Americas and
paid in US dollars.
The Board of Directors proposes to the AGM that the dividend payment be paid by
the Company on 16 May 2012.
This report is unaudited.
Helsinki, 8 February 2012
Stora Enso Oyj
Board of Directors
Financials
Basis of Preparation
Except as described below, this unaudited interim financial report has been
prepared in accordance with the accounting policies set out in International
Accounting Standard 34 on Interim Financial Reporting and in the Group's Annual
Report for 2010.
The following amendments to standards and interpretations were adopted from 1
January 2011 but had no impact on the Group financial statements:
-- IAS 24 Related Party Disclosure - Revised definition of related parties
-- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
requires the extinguishment of a financial liability by the issue of equity
instruments to be measured at fair value with the difference between the
fair value of the instrument issued and the carrying value of the liability
extinguished being recognised in profit or loss.
-- Amendments to IFRS
- Through the annual improvements process, the minor and non-urgent
changes are collected into one ensemble and implemented at the beginning of
the year. In addition, the IASB has published a few other small amendments
which have also been implemented at the beginning of the year. These
changes and amendments effective from 1 January 2011 relate to nine
standards and interpretations. They did not have a significant effect on
the Group financial statements.
Inpac acquisition
Stora Enso acquired 51% of Inpac International on 28 July 2011. Inpac is a
Chinese packaging company with production operations in China and India, and
service operations in Korea. The company specialises in manufacturing consumer
packaging, especially for global manufacturers of consumer electronics and
other consumer goods.
The preliminary consideration amounted to EUR 45 million. The acquisition has
been financed from the Stora Enso Group's own cash assets. The initial
acquisition accounting of the integration of the company has been only
provisionally determined at the end of 2011. The necessary fair valuations and
other calculations have not been finalised and they are based on management's
best estimate.
Equity Accounted Investment reclassification
Stora Enso changed the presentation of its equity accounted investments and all
comparative data with effect from the fourth quarter of 2011. Stora Enso's
share of the net profit of its equity accounted investments is now presented in
one line in Stora Enso's operating profit. The share of taxes of equity
accounted investments has been eliminated from tax expense.
The Group adopted operational EBIT as a key operative non-IFRS measure instead
of operating profit excluding NRI and fair valuations, which had previously
been used. Operational EBIT comprises the operating profit excluding NRI and
fair valuations of the segments and Stora Enso's share of the operating profit
excluding NRI and fair valuations of its equity accounted investments.
Comparative data have been reclassified accordingly.
Impairment testing in 2011
The Group undertook annual goodwill and fixed asset impairment testing in the
fourth quarter of 2011. The testing resulted in a net reversal of fixed asset
impairment of EUR 4 million.
Condensed Consolidated Income Statement
EUR Q4/11 Q3/11 Q4/10 2011 2010 Change Change Change
milli % % %
on Q4/11- Q4/11- 2011-2
Q4/10 Q3/11 010
--------------------------------------------------------------------------------
Sales 2 681.6 2 739.3 2 685.2 10 964.9 10 296.9 -0.1 -2.1 6.5
Other 53.1 41.7 54.3 208.9 159.1 -2.2 27.3 31.3
opera
ting
incom
e
Materi -1 796.2 -1 750.3 -1 747.8 -6 971.9 -6 391.4 -2.8 -2.6 -9.1
als
and
servi
ces
Freigh -243.5 -255.8 -253.7 -1 018.9 -1 010.1 4.0 4.8 -0.9
t and
sales
commi
ssions
Person -327.9 -352.3 -374.8 -1 393.9 -1 375.3 12.5 6.9 -1.4
nel
expen
ses
Other -148.3 -118.0 -102.1 -575.2 -482.2 -45.2 -25.7 -19.3
opera
ting
expen
ses
Share 89.9 12.4 29.0 118.0 71.9 210.0 n/m 64.1
of
resul
ts of
equit
y
accou
nted
inves
tments
*
Deprec -139.2 -138.4 95.7 -572.6 -282.7 -245.5 -0.6 -102.5
iation
and
impai
rment
-------------------------------------------------------------------------
Operat 169.5 178.6 385.8 759.3 986.2 -56.1 -5.1 -23.0
ing
Profi
t*
Net -59.2 -193.4 -21.7 -338.4 -100.9 -172.8 69.4 -235.4
finan
cial
items
-------------------------------------------------------------------------
Profit 110.3 -14.8 364.1 420.9 885.3 -69.7 n/m -52.5
/Loss
befor
e Tax*
Income -10.1 -35.1 -51.1 -78.7 -116.0 80.2 71.2 32.2
tax*
-------------------------------------------------------------------------
Net 100.2 -49.9 313.0 342.2 769.3 -68.0 n/m -55.5
Profi
t/Loss
for
the
Perio
d
-------------------------------------------------------------------------
Attrib
utable
to:
Owners 98.7 -50.3 312.2 339.7 766.0 -68.4 296.2 -55.7
of
the
Paren
t
Non-co 1.5 0.4 0.8 2.5 3.3 87.5 275.0 -24.2
ntroll
ing
inter
ests
-------------------------------------------------------------------------
100.2 -49.9 313.0 342.2 769.3 -68.0 n/m -55.5
=========================================================================
Earnin
gs per
Share
Basic 0.12 -0.06 0.39 0.43 0.97 -69.2 n/m -55.7
earni
ngs
per
share
, EUR
Dilute 0.12 -0.06 0.39 0.43 0.97 -69.2 n/m -55.7
d
earni
ngs
per
share
, EUR
* Reclassified. See details under Equity Accounted Investment reclassification.
Consolidated Statement of Comprehensive Income
EUR million 2011 2010
--------------------------------------------------------------------------------
Net profit for the period 342.2 769.3
Other Comprehensive Income
Actuarial losses on defined benefit pension plans -55.8 -32.5
Available-for-sale financial assets -240.5 95.9
Currency and commodity hedges -128.4 107.7
Share of other comprehensive income of equity accounted -19.4 9.2
investments
Currency translation movements on equity net investments (CTA) -76.2 305.6
Currency translation movements on non-controlling interests - 5.1
Net investment hedges 6.0 -9.8
Income tax relating to components of other comprehensive income 40.8 -13.4
----------------
Other Comprehensive Income, net of tax -473.5 467.8
----------------
Total Comprehensive Income -131.3 1 237.1
----------------
Total Comprehensive Income Attributable to:
Owners of the Parent -133.8 1 228.7
Non-controlling interests 2.5 8.4
----------------
-131.3 1 237.1
----------------
Condensed Consolidated Statement of Cash Flows
EUR million 2011 2010
--------------------------------------------------------------------------------
Cash Flow from Operating Activities
Operating profit* 759.3 986.2
Hedging result from OCI -127.3 97.3
Adjustments for non-cash items* 492.0 213.0
Change in net working capital -173.3 -271.7
------------------
Cash Flow Generated by Operations 950.7 1 024.8
Net financials items paid -124.8 -150.9
Income taxes paid, net -129.1 -62.0
------------------
Net Cash Provided by Operating Activities 696.8 811.9 ------------------
Cash Flow from Investing Activities
Acquisitions of subsidiaries, net of acquired cash -25.0 -12.5
Acquisitions of equity accounted investments -128.6 -16.3
Proceeds from sale of fixed assets and shares, net of 22.1 21.3
disposed cash
Capital expenditure -409.6 -400.4
Payments/proceeds of non-current receivables, net -4.0 42.9
------------------
Net Cash Used in Investing Activities -545.1 -365.0
------------------
Cash Flow from Financing Activities
Proceeds from issue of new long-term debt 61.7 791.8
Long-term debt, payments -83.3 -1 180.6
Change in short-term borrowings 131.2 318.5
Dividends and capital repayments paid -197.2 -157.7
Dividend to non-controlling interests -3.6 -1.2
------------------
Net Cash Used in Financing Activities -91.2 -229.2
------------------
Net Increase in Cash and Cash Equivalents 60.5 217.7
Translation adjustment -29.3 8.4
Net cash and cash equivalents at beginning of period 1 103.1 877.0
------------------
Net Cash and Cash Equivalents at Period End 1 134.3 1 103.1
------------------
Cash and Cash Equivalents at Period End 1 138.8 1 110.9
Bank Overdrafts at Period End -4.5 -7.8
------------------
Net Cash and Cash Equivalents at Period End 1 134.3 1 103.1
------------------
* Reclassified. See details under Equity Accounted Investment
reclassification.
Acquisitions of Subsidiary Companies
Cash and cash equivalents, net of bank overdraft 15.7 0.5
Fixed assets 52.0 4.8
Working capital 13.1 0.1
Tax assets and liabilities -4.6 -0.6
Interest-bearing assets and liabilities -5.4 -0.8
------------------
Fair value of Net Assets Acquired 70.8 4.0
Non-controlling interest (as proportionate share) -37.2 6.0
Provisional goodwill 11.3 3.0
------------------
Total purchase consideration 44.9 13.0
Less cash and cash equivalents in acquired companies -15.7 -0.5
------------------
Net Purchase Consideration 29.2 12.5
------------------
Cash part of the consideration, net of acquired cash 25.0 12.5
Non-cash part of the consideration 4.2 -
------------------
Net Purchase Consideration 29.2 12.5
Disposal of Subsidiary Companies
Cash and cash equivalents - 2.9
Fixed assets - 0.8
Working capital - 6.7
Interest-bearing liabilities - -5.6
Tax liabilities - -8.6
------------------
Net assets in Divested Companies - -3.8
Income Statement capital gain - 5.3
------------------
Total Disposal Consideration Received in Cash and Kind - 1.5
------------------
For 2010 acquired and disposed cash have been netted against acquisitions of
subsidiaries and proceeds from sale of fixed assets and shares, respectively.
Property, Plant and Equipment, Intangible Assets and Goodwill
EUR million 2011 2010
-------------------------------------------------------
Carrying value at 1 January 5 565.8 5 157.7
Acquisition of subsidiary companies 63.3 7.8
Capital expenditure 436.1 377.0
Additions in biological assets 17.2 23.4
Change in emission rights 2.0 15.7
Disposals -13.4 -25.1
Disposals of subsidiary companies 0.0 -0.8
Depreciation and impairment -572.6 -282.7
Translation difference and other -18.2 292.8
-----------------
Statement of Financial Position Total 5 480.2 5 565.8
-----------------
Borrowings
EUR million 31 Dec 11 31 Dec 10
-----------------------------------------------------------
Non-current borrowings 3 339.4 3 259.2
Current borrowings 1 034.0 752.0
---------------------
4 373.4 4 011.2
=====================
---------------------
2011 2010
---------------------
Carrying value at 1 January 4 011.2 3 936.7
Debt acquired with new subsidiaries 5.4 0.8
Debt disposed with sold subsidiaries - -5.6
Proceeds/payments of borrowings (net) 331.6 -111.2
Translation difference and other 25.2 190.5
---------------------
Statement of Financial Position Total 4 373.4 4 011.2
=====================
Condensed Consolidated Statement of Financial Position
EUR million 31 Dec 11 31 Dec 10
-----------------------------------------------------------------------
Assets
Fixed Assets and Other Non-current Investments
Fixed assets O 5 224.6 5 334.3
Biological assets O 212.6 190.5
Emission rights O 43.0 41.0
Equity accounted investments O 1 913.1 1 744.0
Available-for-sale: Interest-bearing I 82.0 78.7
Available-for-sale: Operative O 640.2 879.4
Non-current loan receivables I 125.3 126.5
Deferred tax assets T 121.9 111.0
Other non-current assets O 26.6 37.2
---------------------
8 389.3 8 542.6
---------------------
Current Assets
Inventories O 1 528.7 1 474.6
Tax receivables T 6.2 1.7
Operative receivables O 1 654.6 1 621.8
Interest-bearing receivables I 281.5 285.1
Cash and cash equivalents I 1 138.8 1 110.9
---------------------
4 609.8 4 494.1
---------------------
Total Assets 12 999.1 13 036.7
---------------------
Equity and Liabilities
Owners of the Parent 5 872.7 6 202.9
Non-controlling Interests 87.1 51.8
---------------------
Total Equity 5 959.8 6 254.7
=====================
Non-current Liabilities
Post-employment benefit provisions O 333.1 320.5
Other provisions O 147.7 148.6
Deferred tax liabilities T 401.0 422.6
Non-current debt I 3 339.4 3 259.2
Other non-current operative liabilities O 31.9 62.0
---------------------
4 253.1 4 212.9
---------------------
Current Liabilities
Current portion of non-current debt I 250.0 303.5
Interest-bearing liabilities I 784.0 448.5
Operative liabilities O 1 678.7 1 697.1
Tax liabilities T 73.5 120.0
---------------------
2 786.2 2 569.1
---------------------
Total Liabilities 7 039.3 6 782.0
=====================
Total Equity and Liabilities 12 999.1 13 036.7
=====================
Items designated with “O” comprise Operating Capital
Items designated with “I” comprise Interest-bearing Net Liabilities
Items designated with “T” comprise Net Tax Liabilities
Statement of Changes in Equity
EUR Share Share Invested Treasu Step Availa Curren OCI of
CTA Retaine Attribu Non-co Total
milli Capital Premiu Non-Rest ry Acquis ble cy and Equity
and d table ntroll
on m and ricted Shares ition for Commod Accoun
Net Earning to ing
Reserv Equity Revalu Sale ity ted
Invest s Owners Intere
e fund Fund ation Financ Hedges Invest
ment of the sts
Surplu ial ments
Hedges Parent
s Assets
--------------------------------------------------------------------------------
------------------------------------
Balanc 1 342.2 76.6 2 042.1 -10.2 3.9 684.2 -0.8 -19.0
-194.6 1 199.9 5 124.3 58.2 5 182.5
e at
31
Decem
ber
2009
--------------------------------------------------------------------------------
-----------------------------
Profit - - - - - - - -
- 766.0 766.0 3.3 769.3
for
the
perio
d
OCI - - - - - 95.9 107.7 9.2
295.8 -32.5 476.1 5.1 481.2
befor
e tax
Income - - - - - -0.1 -29.0 -
2.5 13.2 -13.4 - -13.4
tax
relat
ing to
compo
nents
of
OCI
--------------------------------------------------------------------------------
-----------------------------
Total - - - - - 95.8 78.7 9.2
298.3 746.7 1 228.7 8.4 1 237.1
Compr
ehensi
ve
Incom
e
--------------------------------------------------------------------------------
-----------------------------
Divide - - - - - - - -
- - - -1.2 -1.2
nd
Acquis - - - - - - - -
- - - -6.0 -6.0
itions
and
dispo
sals
Gain - - - - - - - -
- 7.6 7.6 -7.6 -
on
buy-o
ut of
non-c
ontrol
ling
inter
est
Return - - -157.7 - - - - -
- - -157.7 - -157.7
of
capit
al
Transf - - -1 251.3 - - - - -
- 1 251.3 - - -
er to
retai
ned
earni
ngs
--------------------------------------------------------------------------------
-----------------------------
Balanc 1 342.2 76.6 633.1 -10.2 3.9 780.0 77.9 -9.8
103.7 3 205.5 6 202.9 51.8 6 254.7
e at
31
Dec
2010
--------------------------------------------------------------------------------
-----------------------------
Profit - - - - - - - -
- 339.7 339.7 2.5 342.2
for
the
perio
d
OCI - - - - - -240.5 -128.4 -19.4
-70.2 -55.8 -514.3 - -514.3
befor
e tax
Income - - - - - 1.1 33.3 -
-1.5 7.9 40.8 - 40.8
tax
relat
ing to
compo
nents
of
OCI
--------------------------------------------------------------------------------
-----------------------------
Total - - - - - -239.4 -95.1 -19.4
-71.7 291.8 -133.8 2.5 -131.3
Compr
ehensi
ve
Incom
e
--------------------------------------------------------------------------------
-----------------------------
Divide - - - - - - - -
- -197.2 -197.2 -3.6 -200.8
nd
Acquis - - - - - - - -
- - - 37.2 37.2
itions
and
dispo
sals
Gain - - - - - - - -
- 0.8 0.8 -0.8 -
on
buy-o
ut of
non-c
ontrol
ling
inter
est
--------------------------------------------------------------------------------
-----------------------------
Balanc 1 342.2 76.6 633.1 -10.2 3.9 540.6 -17.2 -29.2
32.0 3 300.9 5 872.7 87.1 5 959.8
e at
31
Dec
2011
--------------------------------------------------------------------------------
-----------------------------
CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income
Commitments and Contingencies
EUR million 31 Dec 11 31 Dec 10
---------------------------------------------------------------
On Own Behalf
Pledges 1.3 -
Mortgages 9.7 5.2
On Behalf of Equity Accounted Investments
Guarantees 390.2 154.6
On Behalf of Others
Guarantees 5.0 108.3
Other Commitments, Own
Operating leases, in next 12 months 66.1 49.2*
Operating leases, after next 12 months 525.8 448.5*
Pension liabilities 0.4 0.4
Other commitments 5.1 57.2*
---------------------
Total 1 003.6 823.4
=====================
Pledges 1.3 -
Mortgages 9.7 5.2
Guarantees 395.2 262.9
Operating leases 591.9 497.7*
Pension liabilities 0.4 0.4
Other commitments 5.1 57.2*
---------------------
Total 1 003.6 823.4
=====================
* Starting from the fourth quarter of 2011, Stora Enso has ceased the reporting
of the Group's purchase agreement commitments for consumables and services. As
a result, commitments as at 31 Dec 2010 have been reclassified to comply with
the changes in reporting.
Capital commitments
The Group's direct capital expenditure contracts, excluding acquisitions,
amounted to EUR 213.9 (EUR 58.5) million. The Group's share of capital
expenditure contracts of equity accounted investments, excluding acquisitions,
amounted to EUR 435.7 (EUR 0.0) million of which Stora Enso has guaranteed EUR
189.0 million.
Montes del Plata pulp mill project loan guarantees
In September 2011 Stora Enso announced that the Montes del Plata pulp mill
project in Uruguay, a joint venture with Arauco, was proceeding and the
external financing for the project had been finalised. Montes del Plata has
signed the loan agreements and as part of the financing arrangements, Stora
Enso has signed an agreement to guarantee 50% of USD 1 354 million of loans
raised by Montes del Plata. Stora Enso's 50% share of the total guarantee will
be a maximum of USD 677 million (EUR 523.2 million), of which Stora Enso's
guarantee outstanding as of 31 December 2011 amounted to EUR 99.9 million. The
amount outstanding on the balance sheet date is reported in the above table
Commitments and Contingencies.
Fair Values of Derivative Financial Instruments
EUR million 31 Dec 11 31 Dec 10
-----------------------------------------------------------------------------
Positive Negative Net Fair Values Net
Fair Values Fair Values Fair Values
Interest rate swaps 145.7 -49.9 95.8 135.4
Interest rate options - -51.0 -51.0 -35.3
Forward contracts 28.6 -23.8 4.8 47.6
Currency options 20.1 -36.2 -16.1 22.1
Commodity contracts 13.8 -15.9 -2.1 11.6
Equity swaps ("TRS") 1.3 -23.9 -22.6 13.8
-------------------------------------------------------
Total 209.5 -200.7 8.8 195.2
-------------------------------------------------------
Nominal Values of Derivative Financial Instruments
EUR million 31 Dec 11 31 Dec 10
--------------------------------------------------
Interest Rate Derivatives
Interest rate swaps
Maturity under 1 year 61.6 827.5
Maturity 2-5 years 2 073.3 2 569.8
Maturity 6-10 years 250.0 804.7
---------------------
2 384.9 4 202.0
Interest rate options 522.8 601.0
---------------------
Total 2 907.7 4 803.0 ---------------------
Foreign Exchange Derivatives
Forward contracts 1 750.2 2 333.1
Currency options 2 669.4 2 683.4
---------------------
Total 4 419.6 5 016.5
---------------------
.
Commodity Derivatives
Commodity contracts 236.7 297.6
---------------------
Total 236.7 297.6
---------------------
Total Return (Equity) Swaps
Equity swaps ("TRS") 73.3 83.1
---------------------
Total 73.3 83.1
---------------------
Sales by Segment
EUR 2011 Q4/11 Q3/11 Q2/11 Q1/11 2010 Q4/10
Q3/10 Q2/10 Q1/10
milli
on
--------------------------------------------------------------------------------
------------------
Consum 2 506.8 571.4 626.2 662.2 647.0 2 314.7 611.5
593.8 586.3 523.1
er
Board
Indust 997.8 260.6 253.8 240.0 243.4 949.5 241.7
225.4 259.2 223.2
rial
Packa
ging
Newspr 1 318.4 338.6 330.7 334.6 314.5 1 261.6 326.2
322.9 325.1 287.4
int
and
Book
Paper
Magazi 2 094.6 533.4 562.0 517.2 482.0 2 054.2 547.5
541.0 530.2 435.5
ne
Paper
Fine 2 152.9 527.8 529.6 532.2 563.3 2 125.7 533.5
563.3 554.4 474.5
Paper
Wood 1 671.1 382.0 414.0 465.4 409.7 1 588.7 410.3
424.1 422.7 331.6
Produ
cts
Other 2 717.7 648.7 642.1 703.6 723.3 2 524.6 627.3
623.4 648.6 625.3
Inter- -2 494.4 -580.9 -619.1 -638.1 -656.3 -2 522.1 -612.8
-670.3 -634.3 -604.7
segmen
t
sales
--------------------------------------------------------------------------------
-----------
Total 10 964.9 2 681.6 2 739.3 2 817.1 2 726.9 10 296.9 2 685.2 2
623.6 2 692.2 2 295.9
================================================================================
===========
Operational EBIT by Segments
EUR 2011 Q4/11 Q3/11 Q2/11 Q1/11 2010 Q4/10 Q3/10 Q2/10 Q1/10
millio
n
--------------------------------------------------------------------------------
Consume 272.4 27.7 64.4 84.5 95.8 277.1 52.1 77.6 76.9 70.5
r Board
Industr 72.7 13.7 20.1 19.5 19.4 65.5 22.0 18.7 17.1 7.7
ial
Packag
ing
Newspri 115.6 28.5 33.6 27.5 26.0 -10.8 -2.7 0.1 -6.6 -1.6
nt and
Book
Paper
Magazin 128.1 17.7 48.3 33.9 28.2 90.9 19.5 45.5 22.0 3.9
e Paper
Fine 191.8 25.4 37.8 48.7 79.9 259.4 67.6 70.9 79.4 41.5
Paper
Wood 62.8 6.0 9.8 35.2 11.8 70.9 10.2 25.2 30.1 5.4
Produc
ts
Other -90.3 -17.1 -13.2 -31.8 -28.2 -65.9 -22.3 -4.9 -16.5 -22.2
------------------------------------------------------------------------
Operati 753.1 101.9 200.8 217.5 232.9 687.1 146.4 233.1 202.4 105.2
onal
EBIT
from
Segmen
ts
Equity 113.6 43.0 23.6 21.6 25.4 110.2 30.7 30.0 22.1 27.4
accoun
ted
invest
ments
(EAI),
operat
ional1)
------------------------------------------------------------------------
Operati 866.7 144.9 224.4 239.1 258.3 797.3 177.1 263.1 224.5 132.6
onal
EBIT
Fair -31.9 -1.3 -34.6 -7.5 11.5 31.7 -7.1 14.0 6.8 18.0
valuat
ions,
Group2
)
Equity 4.4 46.9 -11.2 -19.4 -11.9 -38.3 -1.7 -11.2 -12.9 -12.5
accoun
ted
invest
ments
(EAI),
non-op
eration
al
items3
)
Non-rec -79.9 -21.0 - -31.7 -27.2 195.5 217.5 5.4 -8.5 -18.9
urring
items,
Group
------------------------------------------------------------------------
Operati 759.3 169.5 178.6 180.5 230.7 986.2 385.8 271.3 209.9 119.2
ng
Profit
(IFRS)
4)
Net -338.4 -59.2 -193.4 -34.6 -51.2 -100.9 -21.7 -51.1 -22.6 -5.5
financ
ial
items
Profit/ 420.9 110.3 -14.8 145.9 179.5 885.3 364.1 220.2 187.3 113.7
Loss
before
Tax4)
Income -78.7 -10.1 -35.1 -9.9 -23.6 -116.0 -51.1 -25.9 -27.4 -11.6
tax
expens
e4)
------------------------------------------------------------------------
Net 342.2 100.2 -49.9 136.0 155.9 769.3 313.0 194.3 159.9 102.1
Profit
/Loss
========================================================================
1) Group's share of operating profits of EAI excluding non-recurring items and
fair valuations.
2) Fair valuations include equity incentive schemes, synthetic options net of
realised and open hedges, and CO2 emission rights.
3) EAI non-operational items include valuations of biological assets related to
forest assets in EAI, non-recurring items of EAI and Group's share of tax and
net financial items of EAI.
4) Reclassified. See details under Equity Accounted Investment reclassification.
NRI by Segment
EUR 2011 Q4/11 Q3/11 Q2/11 Q1/11 2010 Q4/10 Q3/10 Q2/10 Q1/10
million
--------------------------------------------------------------------------------
Consumer 2.8 5.0 - -2.2 - 217.4 167.6 49.8 - -
Board
Industri -6.7 -6.6 - -0.1 - -21.5 -5.0 - -3.3 -13.2
al
Packagi
ng
Newsprin -7.9 - - -6.2 -1.7 -58.5 -1.1 -44.4 -13.0 -
t and
Book
Paper
Magazine 3.1 2.5 - -2.8 3.4 2.4 -1.1 - 9.2 -5.7
Paper
Fine -16.7 3.7 - -20.4 - 68.9 60.4 - 8.5 -
Paper
Wood -33.5 -4.6 - - -28.9 4.0 1.9 - 0.5 1.6
Product
s
Other -21.0 -21.0 - - - -17.2 -5.2 - -10.4 -1.6
Equity - - - - - -15.3 -15.3 - - -
account
ed
investm
ents
-----------------------------------------------------------------------
NRI on -79.9 -21.0 - -31.7 -27.2 180.2 202.2 5.4 -8.5 -18.9
Operati
ng
Profit
NRI on -138.3 -10.1 -128.2 - - - - - - -
Financi
al items
NRI on 62.2 50.8 - 3.6 7.8 -37.9 -37.9 - - -
tax
-----------------------------------------------------------------------
NRI on -156.0 19.7 -128.2 -28.1 -19.4 142.3 164.3 5.4 -8.5 -18.9
Net
Profit
-----------------------------------------------------------------------
Fair Valuations* by Segment and Non-operational Items in Equity Accounted
Investments**
EUR 2011 Q4/11 Q3/11 Q2/11 Q1/11 2010 Q4/10 Q3/10 Q2/10 Q1/10
million
--------------------------------------------------------------------------------
Consumer -4.6 - - -4.6 - - - - - -
Board
Industrial -2.0 - - -2.0 - - - - - -
Packaging
Newsprint -2.9 - - -2.9 - - - - - -
and Book
Paper
Magazine -3.5 - - -3.5 - - - - - -
Paper
Fine Paper -2.9 - - -2.9 - - - - - -
Wood -1.8 - - -1.8 - - - - - -
Products
Other -14.2 -1.3 -34.6 10.2 11.5 31.7 -7.1 14.0 6.8 18.0
Equity 4.4 46.9 -11.2 -19.4 -11.9 -23.0 13.6 -11.2 -12.9 -12.5
accounted
investmen
ts
---------------------------------------------------------------------
Fair -27.5 45.6 -45.8 -26.9 -0.4 8.7 6.5 2.8 -6.1 5.5
Valuation
s by
Segment
and
Non-opera
tional
Items in
EAI on
Operating
Profit
---------------------------------------------------------------------
* Fair valuations include equity incentive schemes, synthetic options net of
realised and open hedges, and CO2 emission rights.
** EAI non-operational items include valuations of biological assets related to
forest assets in EAI, and Group's share of tax and net financial items of EAI.
Operating Profit/Loss by Segment
EUR 2011 Q4/11 Q3/11 Q2/11 Q1/11 2010 Q4/10 Q3/10 Q2/10 Q1/10
millio
n
--------------------------------------------------------------------------------
Consume 270.6 32.7 64.4 77.7 95.8 494.5 219.7 127.4 76.9 70.5
r Board
Industr 64.0 7.1 20.1 17.4 19.4 44.0 17.0 18.7 13.8 -5.5
ial
Packag
ing
Newspri 104.8 28.5 33.6 18.4 24.3 -69.3 -3.8 -44.3 -19.6 -1.6
nt and
Book
Paper
Magazin 127.7 20.2 48.3 27.6 31.6 93.3 18.4 45.5 31.2 -1.8
e Paper
Fine 172.2 29.1 37.8 25.4 79.9 328.3 128.0 70.9 87.9 41.5
Paper
Wood 27.5 1.4 9.8 33.4 -17.1 74.9 12.1 25.2 30.6 7.0
Produc
ts
Other -125.5 -39.4 -47.8 -21.6 -16.7 -51.4 -34.6 9.1 -20.1 -5.8
Share 118.0 89.9 12.4 2.2 13.5 71.9 29.0 18.8 9.2 14.9
of
result
s of
equity
accoun
ted
invest
ments
------------------------------------------------------------------------
Operati 759.3 169.5 178.6 180.5 230.7 986.2 385.8 271.3 209.9 119.2
ng
Profit
(IFRS)
*
Net -338.4 -59.2 -193.4 -34.6 -51.2 -100.9 -21.7 -51.1 -22.6 -5.5
financ
ial
items
------------------------------------------------------------------------
Profit/ 420.9 110.3 -14.8 145.9 179.5 885.3 364.1 220.2 187.3 113.7
Loss
before
Tax*
Income -78.7 -10.1 -35.1 -9.9 -23.6 -116.0 -51.1 -25.9 -27.4 -11.6
tax
expens
e*
------------------------------------------------------------------------
Net 342.2 100.2 -49.9 136.0 155.9 769.3 313.0 194.3 159.9 102.1
Profit
/Loss
========================================================================
* Reclassified. See details under Equity Accounted Investment reclassification.
Key Exchange Rates for the Euro
One Euro is Closing Rate Average Rate
-------------------------------------------------------
31 Dec 11 31 Dec 10 31 Dec 11 31 Dec 10
-------------------------------------------
SEK 8.9120 8.9655 9.0307 9.5464
USD 1.2939 1.3362 1.3922 1.3272
GBP 0.8353 0.8608 0.8678 0.8583
-------------------------------------------
Transaction Risk and Hedges in Main Currencies as at 31 December 2011
EUR million EUR USD GBP SEK Other Total
--------------------------------------------------------------------------------
Sales during 2011 6 470 1 500 660 1 280 1 050 10 960
Costs during 2011 -5 730 -560 -90 -2 280 -1 090 -9 750
--------------------------------------------
Net Operating Cash flow 740 940 570 -1 000 -40 1 210
--------------------------------------------
Estimated annual net operating cash 1 200 600 -870
flow exposure
Transaction hedges as at 31 Dec -540 -270 380
2011
--------------------------------------------
Hedging Percentage as at 31 Dec 45% 45% 44%
2011 for the Next 12 Months
--------------------------------------------
Additional USD and GBP hedges for 13-16 months increase the hedging percentages
by 7% and 4% respectively.
Changes in Exchange Rates on Operational EBIT
Operational EBIT: Currency Strengthening of + 10% EUR million
--------------------------------------------------------------
USD 120
SEK -87
GBP 60
--------------------------------------------------------------
The sensitivity is based on estimated next 12 months net operating cash flow.
The calculation does not take into account currency hedges, and assumes no
changes occur other than a single currency exchange rate movement. Weakening
would have the opposite impact.
Stora Enso Shares
Trading Volume Helsinki Stockholm
------------------------------------------
A share R share A share R share
---------------------------------------------------------
October 35 878 122 088 452 59 402 27 326 461
November 37 716 136 930 862 140 884 32 306 867
December 100 338 87 795 199 172 202 28 403 051
------------------------------------------
Total 173 932 346 814 513 372 488 88 036 379
------------------------------------------
Closing Price Helsinki, EUR Stockholm, SEK
------------------------------------------
A share R share A share R share
---------------------------------------------------------
October 6.85 4.60 52.50 41.60
November 5.75 4.63 43.97 41.96
December 5.03 4.63 45.95 41.37
Calculation of Key Figures
Operational return on capital employed,
operational ROCE (%) 100 x
Operational EBIT
Capital employed 1) 2)
Operational return on operating capital, 100 x Operational
EBIT
operational ROOC (%)
Operating capital 1) 2)
Return on equity, 100 x
Profit before tax and non-controlling items - taxes
ROE (%)
Total equity 2)
Equity ratio (%) 100 x
Total equity
Total assets
Interest-bearing net liabilities
Interest-bearing liabilities - interest-bearing assets
Debt/equity ratio
Interest-bearing net liabilities
Equity
Fixed asset
CEPS
Net profit/loss for the period 3) - depreciation and impairment
Average number of shares
EPS
Net profit/loss for the period 3)
Average number of shares
Operational EBIT
Operating profit/loss excluding NRI and fair valuations + Stora Enso's share of
operating profit/loss excluding NRI and fair valuations of its equity accounted
investments (EAI)
1) Capital employed = Operating capital - Net tax liabilities
2) Average for the financial period
3) Attributable to owners of the Parent
For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Markus Rauramo, CFO, tel. +358 2046 21121
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046
21380
Stora Enso's first quarter 2012 results will be published on 24 April 2012 at
13.00 EET.
Annual General Meeting on 24 April 2012 at 16.00 EET.
PRESS CONFERENCE IN HELSINKI
Time: 14.00 local time today
Location: Stora Enso Oyj
Address: Kanavaranta 1
Presentations: Jouko Karvinen, CEO
Markus Rauramo, CFO
The conference will be held in Finnish. Questions can be addressed to Jouko
Karvinen and Markus Rauramo after the presentation.
ANALYST CONFERENCE CALL
CEO Jouko Karvinen and CFO Markus Rauramo will be hosting a combined conference
call and webcast today at 16.00 Finnish time (15.00 CET, 14.00 UK time, 09.00
US Eastern time).
If you wish to participate, please dial:
Continental Europe and the UK +44 (0)20 7136 2050
Finland +358 (0)9 6937 9543
Sweden +46 (0)8 5876 9445
USA +1 646 254 3361
Access code: 5144825
The live webcast may be accessed at www.storaenso.com/investors
Stora Enso is the global rethinker of the biomaterials, paper, packaging and
wood products industry. We always rethink the old and expand to the new to
offer our customers innovative solutions based on renewable materials. Stora
Enso employs some 30 000 people worldwide, and our sales in 2011 amounted to
EUR 11.0 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV,
STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the
USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
It should be noted that certain statements herein which are not historical
facts, including, without limitation those regarding expectations for market
growth and developments; expectations for growth and profitability; and
statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or
similar expressions, are forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995. Since these
statements are based on current plans, estimates and projections, they involve
risks and uncertainties, which may cause actual results to materially differ
from those expressed in such forward-looking statements. Such factors include,
but are not limited to: (1) operating factors such as continued success of
manufacturing activities and the achievement of efficiencies therein, continued
success of product development, acceptance of new products or services by the
Group's targeted customers, success of the existing and future collaboration
arrangements, changes in business strategy or development plans or targets,
changes in the degree of protection created by the Group's patents and other
intellectual property rights, the availability of capital on acceptable terms;
(2) industry conditions, such as strength of product demand, intensity of
competition, prevailing and future global market prices for the Group's
products and the pricing pressures thereto, price fluctuations in raw
materials, financial condition of the customers and the competitors of the
Group, the potential introduction of competing products and technologies by
competitors; and (3) general economic conditions, such as rates of economic
growth in the Group's principal geographic markets or fluctuations in exchange
and interest rates.
www.storaenso.com
www.storaenso.com/investors
STORA ENSO OYJ
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