Stora Enso changes presentation of equity accounted investments
STORA ENSO OYJ STOCK EXCHANGE RELEASE 15 December 2011 at 9.00 EET
Stora Enso will change 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 will be presented in one line in Stora Enso’s operating profit. The Group will adopt operational EBIT as a key operative non-IFRS measure instead of operating profit excluding NRI and fair valuations, which has been used until now. 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.
This change will not affect the Group’s net profit, equity or statement of financial position.
Goodwill and fixed asset impairment testing
Stora Enso has undertaken goodwill and fixed asset impairment testing in the fourth quarter of 2011. The resulting net reversal of impairment recording will have a positive impact of about EUR 4 million on the fourth quarter of 2011 operating profit.
Updated profit and loss presentation for periods Q1 2010 – Q3 2011:
Segment table – As published in Q3 2011
| EUR million | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Consumer Board | 64.4 | 84.5 | 95.8 | 277.1 | 52.1 | 77.6 | 76.9 | 70.5 |
| Industrial Packaging | 20.1 | 19.5 | 19.4 | 65.5 | 22.0 | 18.7 | 17.1 | 7.7 |
| Newsprint and Book Paper | 33.6 | 27.5 | 26.0 | -10.8 | -2.7 | 0.1 | -6.6 | -1.6 |
| Magazine Paper | 48.3 | 33.9 | 28.2 | 90.9 | 19.5 | 45.5 | 22.0 | 3.9 |
| Fine Paper | 37.8 | 48.7 | 79.9 | 259.4 | 67.6 | 70.9 | 79.4 | 41.5 |
| Wood Products | 9.8 | 35.2 | 11.8 | 70.9 | 10.2 | 25.2 | 30.1 | 5.4 |
| Other | -13.2 | -31.8 | -28.2 | -65.9 | -22.3 | -4.9 | -16.5 | -22.2 |
| Operating Profit excl. NRI and Fair Valuations by Segment | 200.8 | 217.5 | 232.9 | 687.1 | 146.4 | 233.1 | 202.4 | 105.2 |
| Share of results of equity accounted investments excl. fair valuations | 3.4 | 10.8 | 15.1 | 67.0 | 20.4 | 21.9 | 10.5 | 14.2 |
| Operating Profit excl. NRI and Fair Valuations* | 204.2 | 228.3 | 248.0 | 754.1 | 166.8 | 255.0 | 212.9 | 119.4 |
| Fair valuations* | -28.1 | -11.9 | 16.4 | 92.5 | 41.9 | 16.5 | 11.2 | 22.9 |
| Operating Profit excl. NRI | 176.1 | 216.4 | 264.4 | 846.6 | 208.7 | 271.5 | 224.1 | 142.3 |
| NRI on operating profit | - | -31.7 | -27.2 | 180.2 | 202.2 | 5.4 | -8.5 | -18.9 |
| Operating Profit (IFRS) | 176.1 | 184.7 | 237.2 | 1 026.8 | 410.9 | 276.9 | 215.6 | 123.4 |
| Net financial items | -193.4 | -34.6 | -51.2 | -100.9 | -21.7 | -51.1 | -22.6 | -5.5 |
| Loss/Profit before Tax and Non-controlling Interests | -17.3 | 150.1 | 186.0 | 925.9 | 389.2 | 225.8 | 193.0 | 117.9 |
| Income tax expense | -32.6 | -14.1 | -30.1 | -156.6 | -76.2 | -31.5 | -33.1 | -15.8 |
| Net Loss/Profit | -49.9 | 136.0 | 155.9 | 769.3 | 313.0 | 194.3 | 159.9 | 102.1 |
* 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 equity accounted investments.
Segment table – Reclassified, Operational EBIT
| EUR million | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Consumer Board | 64.4 | 84.5 | 95.8 | 277.1 | 52.1 | 77.6 | 76.9 | 70.5 |
| Industrial Packaging | 20.1 | 19.5 | 19.4 | 65.5 | 22.0 | 18.7 | 17.1 | 7.7 |
| Newsprint and Book Paper | 33.6 | 27.5 | 26.0 | -10.8 | -2.7 | 0.1 | -6.6 | -1.6 |
| Magazine Paper | 48.3 | 33.9 | 28.2 | 90.9 | 19.5 | 45.5 | 22.0 | 3.9 |
| Fine Paper | 37.8 | 48.7 | 79.9 | 259.4 | 67.6 | 70.9 | 79.4 | 41.5 |
| Wood Products | 9.8 | 35.2 | 11.8 | 70.9 | 10.2 | 25.2 | 30.1 | 5.4 |
| Other | -13.2 | -31.8 | -28.2 | -65.9 | -22.3 | -4.9 | -16.5 | -22.2 |
| Operational EBIT from Segments | 200.8 | 217.5 | 232.9 | 687.1 | 146.4 | 233.1 | 202.4 | 105.2 |
| Equity accounted investments (EAI), operational** | 23.6 | 21.6 | 25.4 | 110.2 | 30.7 | 30.0 | 22.1 | 27.4 |
| Operational EBIT | 224.4 | 239.1 | 258.3 | 797.3 | 177.1 | 263.1 | 224.5 | 132.6 |
| Fair valuations, Group*** | -34.6 | -7.5 | 11.5 | 31.7 | -7.1 | 14.0 | 6.8 | 18.0 |
| Equity accounted investments (EAI), non-operational items**** | -11.2 | -19.4 | -11.9 | -38.3 | -1.7 | -11.2 | -12.9 | -12.5 |
| Non-recurring items, Group | - | -31.7 | -27.2 | 195.5 | 217.5 | 5.4 | -8.5 | -18.9 |
| Operating Profit (IFRS) | 178.6 | 180.5 | 230.7 | 986.2 | 385.8 | 271.3 | 209.9 | 119.2 |
| Net financial items | -193.4 | -34.6 | -51.2 | -100.9 | -21.7 | -51.1 | -22.6 | -5.5 |
| Loss/Profit before Tax | -14.8 | 145.9 | 179.5 | 885.3 | 364.1 | 220.2 | 187.3 | 113.7 |
| Income tax expense | -35.1 | -9.9 | -23.6 | -116.0 | -51.1 | -25.9 | -27.4 | -11.6 |
| Net Loss/Profit | -49.9 | 136.0 | 155.9 | 769.3 | 313.0 | 194.3 | 159.9 | 102.1 |
** Group's share of EAIs operating profit excluding non-recurring items and fair valuations.
*** Fair valuations include equity incentive schemes, synthetic options net of realised and open hedges, CO2 emission rights.
**** EAI non-operational items include valuations of biological assets related to forest assets in EAIs, non-recurring items in EAIs and Group's share of EAIs tax and net financial items.
Segment table – Change
| EUR million | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Consumer Board | - | - | - | - | - | - | - | - |
| Industrial Packaging | - | - | - | - | - | - | - | - |
| Newsprint and Book Paper | - | - | - | - | - | - | - | - |
| Magazine Paper | - | - | - | - | - | - | - | - |
| Fine Paper | - | - | - | - | - | - | - | - |
| Wood Products | - | - | - | - | - | - | - | - |
| Other | - | - | - | - | - | - | - | - |
| Operational EBIT from Segments | - | - | - | - | - | - | - | - |
| Equity accounted investments (EAI), operational | 20.2 | 10.8 | 10.3 | 43.2 | 10.3 | 8.1 | 11.6 | 13.2 |
| Operational EBIT | 20.2 | 10.8 | 10.3 | 43.2 | 10.3 | 8.1 | 11.6 | 13.2 |
| Fair valuations, Group | -6.5 | 4.4 | -4.9 | -60.8 | -49.0 | -2.5 | -4.4 | -4.9 |
| Equity accounted investments (EAI), non-operational items | -11.2 | -19.4 | -11.9 | -38.3 | -1.7 | -11.2 | -12.9 | -12.5 |
| Non-recurring items, Group | - | - | - | 15.3 | 15.3 | - | - | - |
| Operating Profit (IFRS) | 2.5 | -4.2 | -6.5 | -40.6 | -25.1 | -5.6 | -5.7 | -4.2 |
| Net financial items | - | - | - | - | - | - | - | - |
| Loss/Profit before Tax | 2.5 | -4.2 | -6.5 | -40.6 | -25.1 | -5.6 | -5.7 | -4.2 |
| Income tax expense | -2.5 | 4.2 | 6.5 | 40.6 | 25.1 | 5.6 | 5.7 | 4.2 |
| Net Loss/Profit | - | - | - | - | - | - | - | - |
Condensed Consolidated Income Statement – As published in Q3/11
| EUR million | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Sales | 2 739.3 | 2 817.1 | 2 726.9 | 10 296.9 | 2 685.2 | 2 623.6 | 2 692.2 | 2 295.9 |
| Other operating income | 41.7 | 57.1 | 57.0 | 159.1 | 54.3 | 38.6 | 31.9 | 34.3 |
| Materials and services | -1 750.3 | -1 757.2 | -1 668.2 | -6 391.4 | -1 747.8 | -1 574.2 | -1 641.3 | -1 428.1 |
| Freight and sales commissions | -255.8 | -262.5 | -257.1 | -1 010.1 | -253.7 | -267.3 | -263.9 | -225.2 |
| Personnel expenses | -352.3 | -370.5 | -343.2 | -1 375.3 | -374.8 | -309.7 | -361.8 | -329.0 |
| Other operating expenses | -118.0 | -165.6 | -143.3 | -482.2 | -102.1 | -119.8 | -148.2 | -112.0 |
| Share of results of equity accounted investments | 9.9 | 6.4 | 20.0 | 112.5 | 54.1 | 24.4 | 14.9 | 19.1 |
| Depreciation and impairment | -138.4 | -140.1 | -154.9 | -282.7 | 95.7 | -138.7 | -108.2 | -131.6 |
| Operating Profit | 176.1 | 184.7 | 237.2 | 1 026.8 | 410.9 | 276.9 | 215.6 | 123.4 |
| Net financial items | -193.4 | -34.6 | -51.2 | -100.9 | -21.7 | -51.1 | -22.6 | -5.5 |
| Loss/Profit before Tax | -17.3 | 150.1 | 186.0 | 925.9 | 389.2 | 225.8 | 193.0 | 117.9 |
| Income tax | -32.6 | -14.1 | -30.1 | -156.6 | -76.2 | -31.5 | -33.1 | -15.8 |
| Net Loss/Profit for the Period | -49.9 | 136.0 | 155.9 | 769.3 | 313.0 | 194.3 | 159.9 | 102.1 |
| Attributable to: | ||||||||
| Owners of the Parent | -50.3 | 135.7 | 155.6 | 766.0 | 312.2 | 193.2 | 159.1 | 101.5 |
| Non-controlling interests | 0.4 | 0.3 | 0.3 | 3.3 | 0.8 | 1.1 | 0.8 | 0.6 |
| -49.9 | 136.0 | 155.9 | 769.3 | 313.0 | 194.3 | 159.9 | 102.1 |
Condensed Consolidated Income Statement – Reclassified
| EUR million | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Sales | 2 739.3 | 2 817.1 | 2 726.9 | 10 296.9 | 2 685.2 | 2 623.6 | 2 692.2 | 2 295.9 |
| Other operating income | 41.7 | 57.1 | 57.0 | 159.1 | 54.3 | 38.6 | 31.9 | 34.3 |
| Materials and services | -1 750.3 | -1 757.2 | -1 668.2 | -6 391.4 | -1 747.8 | -1 574.2 | -1 641.3 | -1 428.1 |
| Freight and sales commissions | -255.8 | -262.5 | -257.1 | -1 010.1 | -253.7 | -267.3 | -263.9 | -225.2 |
| Personnel expenses | -352.3 | -370.5 | -343.2 | -1 375.3 | -374.8 | -309.7 | -361.8 | -329.0 |
| Other operating expenses | -118.0 | -165.6 | -143.3 | -482.2 | -102.1 | -119.8 | -148.2 | -112.0 |
| Share of results of equity accounted investments* | 12.4 | 2.2 | 13.5 | 71.9 | 29.0 | 18.8 | 9.2 | 14.9 |
| Depreciation and impairment | -138.4 | -140.1 | -154.9 | -282.7 | 95.7 | -138.7 | -108.2 | -131.6 |
| Operating Profit* | 178.6 | 180.5 | 230.7 | 986.2 | 385.8 | 271.3 | 209.9 | 119.2 |
| Net financial items | -193.4 | -34.6 | -51.2 | -100.9 | -21.7 | -51.1 | -22.6 | -5.5 |
| Loss/Profit before Tax* | -14.8 | 145.9 | 179.5 | 885.3 | 364.1 | 220.2 | 187.3 | 113.7 |
| Income tax* | -35.1 | -9.9 | -23.6 | -116.0 | -51.1 | -25.9 | -27.4 | -11.6 |
| Net Loss/Profit for the Period | -49.9 | 136.0 | 155.9 | 769.3 | 313.0 | 194.3 | 159.9 | 102.1 |
| Attributable to: | ||||||||
| Owners of the Parent | -50.3 | 135.7 | 155.6 | 766.0 | 312.2 | 193.2 | 159.1 | 101.5 |
| Non-controlling interests | 0.4 | 0.3 | 0.3 | 3.3 | 0.8 | 1.1 | 0.8 | 0.6 |
| -49.9 | 136.0 | 155.9 | 769.3 | 313.0 | 194.3 | 159.9 | 102.1 |
Condensed Consolidated Income Statement – Change
| EUR million | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Sales | - | - | - | - | - | - | - | - |
| Other operating income | - | - | - | - | - | - | - | - |
| Materials and services | - | - | - | - | - | - | - | - |
| Freight and sales commissions | - | - | - | - | - | - | - | - |
| Personnel expenses | - | - | - | - | - | - | - | - |
| Other operating expenses | - | - | - | - | - | - | - | - |
| Share of results of equity accounted investments | 2.5 | -4.2 | -6.5 | -40.6 | -25.1 | -5.6 | -5.7 | -4.2 |
| Depreciation and impairment | - | - | - | - | - | - | - | - |
| Operating Profit | 2.5 | -4.2 | -6.5 | -40.6 | -25.1 | -5.6 | -5.7 | -4.2 |
| Net financial items | - | - | - | - | - | - | - | - |
| Loss/Profit before Tax | 2.5 | -4.2 | -6.5 | -40.6 | -25.1 | -5.6 | -5.7 | -4.2 |
| Income tax | -2.5 | 4.2 | 6.5 | 40.6 | 25.1 | 5.6 | 5.7 | 4.2 |
| Net Loss/Profit for the Period | - | - | - | - | - | - | - | - |
| Attributable to: | ||||||||
| Owners of the Parent | - | - | - | - | - | - | - | - |
| Non-controlling interests | - | - | - | - | - | - | - | - |
| - | - | - | - | - | - | - | - |
ROCE – As published in Q3 2011
| % | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| ROCE excl. NRI and fair valuations | 9.3 | 10.4 | 11.4 | 9.2 | 7.9 | 12.4 | 10.5 | 6.0 |
ROCE – Reclassified
| % | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Operational ROCE | 10.3 | 10.9 | 11.9 | 9.7 | 8.4 | 12.8 | 11.0 | 6.7 |
ROCE – Change
| % | Q3/11 | Q2/11 | Q1/11 | 2010 | Q4/10 | Q3/10 | Q2/10 | Q1/10 |
| Operational ROCE | 1.0 | 0.5 | 0.5 | 0.5 | 0.5 | 0.4 | 0.5 | 0.7 |
For further information, please contact:
Markus Rauramo, CFO, tel. +358 2046 21121
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
www.storaenso.com
www.storaenso.com/investors
Stora Enso is the global rethinker of the packaging, paper 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 2010 amounted to EUR 10.3 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.
STORA ENSO OYJ