Stora Enso’s historical figures according to the new division structure
STORA ENSO OYJ STOCK EXCHANGE RELEASE 18 March 2015 at 9.00 EET
From the first quarter of 2015 onwards, Stora Enso will publish financial figures for its five divisions and its segment Other.
As announced on 18 December 2014, Stora Enso has reorganised its divisional and reporting structure. In Stora Enso, the IFRS reporting segments are formed by divisions except for the segment Other.The new structure is valid from 1 January 2015 onwards. Stora Enso will report financial figures for the divisions Consumer Board, Packaging Solutions, Biomaterials, Wood Products and Paper and the segment Other.
The former Renewable Packaging division has been split into two separate divisions: Consumer Board and Packaging Solutions. The Consumer Board division operates five board mills in Finland, Sweden and Spain. The operations of the Guangxi board mill project in China and the Bulleh Shah Packaging joint venture in Pakistan also belong to Consumer Board. Packaging Solutions operates container board mills in Finland and Poland and converting plants in ten countries in Europe and Asia, including Inpac Packaging in China and India.
The new structure in the packaging business is a further step towards strengthening Stora Enso’s focus on customers, business performance and growth. It also increases transparency in financial reporting.
| Name until 31 Dec 2014 | Name from 1 Jan 2015 |
| Renewable Packaging | - |
| - | Consumer Board Division |
| - | Packaging Solutions Division |
| Biomaterials | Biomaterials Division |
| Building and Living | Wood Products Division |
| Printing and Reading | Paper Division |
| Other | Other |
The segment Other includes the Nordic forest equity-accounted investments, Stora Enso’s shareholding in Pohjolan Voima, operations supplying wood to the Nordic mills and Group shared services and administration.
The historical figures according to the new reporting structure are presented in the tables below.
SALES
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | 2 297 | 554 | 583 | 596 | 564 | 2 241 | 523 | 564 | 581 | 573 |
| Packaging Solutions | 1 065 | 263 | 276 | 259 | 267 | 1 061 | 268 | 274 | 264 | 255 |
| Biomaterials | 1 104 | 314 | 284 | 243 | 263 | 1 033 | 266 | 239 | 266 | 262 |
| Wood Products | 1 779 | 415 | 429 | 490 | 445 | 1 867 | 466 | 460 | 500 | 441 |
| Paper | 3 912 | 984 | 959 | 970 | 999 | 4 319 | 1 054 | 1 041 | 1 101 | 1 123 |
| Other | 2 567 | 645 | 579 | 654 | 689 | 2 690 | 672 | 612 | 685 | 721 |
| Inter-segment sales | -2 511 | -623 | -596 | -633 | -659 | -2 648 | -637 | -637 | -671 | -703 |
| Sales Total | 10 213 | 2 552 | 2 514 | 2 579 | 2 568 | 10 563 | 2 612 | 2 553 | 2 726 | 2 672 |
OPERATIONAL EBITDA*
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | 439 | 81 | 129 | 126 | 103 | 361 | 74 | 105 | 92 | 90 |
| Packaging Solutions | 183 | 46 | 51 | 40 | 46 | 161 | 48 | 47 | 37 | 29 |
| Biomaterials | 173 | 60 | 47 | 28 | 38 | 153 | 42 | 37 | 32 | 42 |
| Wood Products | 126 | 19 | 30 | 47 | 30 | 115 | 30 | 33 | 39 | 13 |
| Paper | 361 | 109 | 84 | 83 | 85 | 290 | 86 | 81 | 51 | 72 |
| Other | -13 | -7 | -8 | 2 | 0 | 10 | -20 | 16 | 6 | 8 |
| Operational EBITDA Total | 1 269 | 308 | 333 | 326 | 302 | 1 090 | 260 | 319 | 257 | 254 |
*Operational EBITDA comprises the operating profit excluding fixed asset depreciation and impairment, share of results of equity accounted investments, NRI and fair valuations.
OPERATIONAL EBIT*
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | 292 | 44 | 95 | 91 | 62 | 217 | 40 | 67 | 56 | 54 |
| Packaging Solutions | 118 | 30 | 35 | 23 | 30 | 101 | 33 | 33 | 21 | 14 |
| Biomaterials | 89 | 34 | 24 | 10 | 21 | 77 | 24 | 17 | 14 | 22 |
| Wood Products | 89 | 10 | 22 | 37 | 20 | 75 | 19 | 24 | 28 | 4 |
| Paper | 172 | 68 | 33 | 36 | 35 | 34 | 36 | 13 | -17 | 2 |
| Other | 50 | 23 | 1 | 12 | 14 | 74 | - | 30 | 22 | 22 |
| Operational EBIT Total | 810 | 209 | 210 | 209 | 182 | 578 | 152 | 184 | 124 | 118 |
* 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 and non-operational items include equity incentive schemes, synthetic options net of realised and open hedges, CO2 emission rights and valuations of biological assets and the Group’s share of tax and net financial items of EAI.
NRI*
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | - | - | - | - | - | 124 | 144 | -28 | 8 | - |
| Packaging Solutions | 8 | 8 | - | - | - | -4 | - | - | -4 | - |
| Biomaterials | - | - | - | - | - | 2 | -8 | -1 | 11 | - |
| Wood Products | -11 | 2 | - | - | -13 | -7 | - | - | - | -7 |
| Paper | -329 | -235 | 28 | -115 | -7 | -644 | -538 | 8 | -30 | -84 |
| Other | 53 | - | - | 9 | 44 | -10 | 10 | -2 | -18 | - |
| NRI on Operating Profit/Loss Total | -279 | -225 | 28 | -106 | 24 | -539 | -392 | -23 | -33 | -91 |
* 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 disclosed individually if they exceed one cent per share.
FAIR VALUATIONS AND NON-OPERATIONAL ITEMS*
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | -60 | -58 | -4 | - | 2 | -1 | - | -1 | - | - |
| Packaging Solutions | -1 | - | - | - | -1 | - | - | - | - | - |
| Biomaterials | -4 | 3 | -2 | -2 | -3 | 5 | 13 | -4 | -2 | -2 |
| Wood Products | -1 | - | - | - | -1 | - | - | - | - | - |
| Paper | -1 | - | - | 1 | -2 | 2 | 3 | -1 | - | - |
| Other | -64 | -24 | -17 | -17 | -6 | 5 | 14 | 1 | -6 | -4 |
| FV and Non-operational Items on Operating Profit Total | -131 | -79 | -23 | -18 | -11 | 11 | 30 | -5 | -8 | -6 |
* Fair valuations (FV) and non-operational items include equity incentive schemes, synthetic options net of realised and open hedges, CO2 emission rights, valuations of biological assets and the Group’s share of tax and net financial items of EAI.
OPERATING PROFIT/LOSS
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | 232 | -14 | 91 | 91 | 64 | 340 | 184 | 38 | 64 | 54 |
| Packaging Solutions | 125 | 38 | 35 | 23 | 29 | 97 | 33 | 33 | 17 | 14 |
| Biomaterials | 85 | 37 | 22 | 8 | 18 | 84 | 29 | 12 | 23 | 20 |
| Wood Products | 77 | 12 | 22 | 37 | 6 | 68 | 19 | 24 | 28 | -3 |
| Paper | -158 | -167 | 61 | -78 | 26 | -608 | -499 | 20 | -47 | -82 |
| Other | 39 | -1 | -16 | 4 | 52 | 69 | 24 | 29 | -2 | 18 |
| Operating Profit/Loss (IFRS) Total | 400 | -95 | 215 | 85 | 195 | 50 | -210 | 156 | 83 | 21 |
CASH FLOW FROM OPERATIONS
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | 386 | 127 | 101 | 100 | 58 | 364 | 96 | 141 | 96 | 31 |
| Packaging Solutions | 182 | 43 | 58 | 39 | 42 | 151 | 50 | 53 | 26 | 22 |
| Biomaterials | 136 | 17 | 27 | 61 | 31 | 114 | 42 | 48 | 24 | - |
| Wood Products | 86 | 33 | 52 | 6 | -5 | 125 | 43 | 42 | 49 | -9 |
| Paper | 354 | 213 | 72 | 59 | 10 | 382 | 179 | 56 | 115 | 32 |
| Other | -5 | 9 | -53 | 23 | 16 | 116 | 52 | 7 | 7 | 50 |
| Cash Flow from Operations Total | 1 139 | 442 | 257 | 288 | 152 | 1 252 | 462 | 347 | 317 | 126 |
CASH FLOW AFTER INVESTING ACTIVITIES
| EUR million | 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 |
| Consumer Board | 60 | 16 | -21 | 44 | 21 | 206 | 51 | 111 | 41 | 3 |
| Packaging Solutions | 128 | 21 | 45 | 29 | 33 | 69 | 36 | 42 | 7 | -16 |
| Biomaterials | -108 | -40 | -30 | -7 | -31 | -231 | -36 | -33 | -73 | -89 |
| Wood Products | 58 | 15 | 48 | 3 | -8 | 97 | 30 | 37 | 41 | -11 |
| Paper | 243 | 172 | 43 | 36 | -8 | 248 | 123 | 5 | 99 | 21 |
| Other | -126 | -6 | -57 | -76 | 13 | 92 | 42 | 2 | 2 | 46 |
| Cash Flow after Investing Activities Total | 255 | 178 | 28 | 29 | 20 | 481 | 246 | 164 | 117 | -46 |
OPERATIONAL ROOC* FOR DIVISIONS AND OPERATIONAL ROCE** FOR GROUP
| 2014 | Q4/14 | Q3/14 | Q2/14 | Q1/14 | 2013 | Q4/13 | Q3/13 | Q2/13 | Q1/13 | |
| Consumer Board | 17.8% | 10.0% | 22.4% | 22.7% | 15.7% | 14.4% | 10.7% | 18.3% | 14.8% | 14.6% |
| Packaging Solutions | 14.1% | 14.5% | 16.0% | 10.4% | 13.5% | 11.3% | 14.7% | 14.7% | 9.2% | 6.1% |
| Biomaterials | 3.9% | 5.6% | 4.2% | 1.8% | 4.0% | 3.8% | 4.6% | 3.3% | 2.6% | 4.2% |
| Wood Products | 17.3% | 7.6% | 16.0% | 27.1% | 15.3% | 13.9% | 14.4% | 17.7% | 20.0% | 2.8% |
| Paper | 9.4% | 15.1% | 6.7% | 7.1% | 6.8% | 1.4% | 6.1% | 1.9% | -2.4% | 0.3% |
| Group Total, ROCE | 9.5% | 9.7% | 9.7% | 9.8% | 8.6% | 6.5% | 7.0% | 8.3% | 5.4% | 5.1% |
* Operational ROOC = 100% x Operational EBIT/Average operating capital
** Operational ROCE = 100% x Operational EBIT/Average capital employed
OPERATING CAPITAL
| EUR million | 31 Dec 2014 | 31 Dec 2013 |
| Consumer Board | 1 727 | 1 560 |
| Packaging Solutions | 783 | 892 |
| Biomaterials | 2 456 | 2 083 |
| Wood Products | 513 | 516 |
| Paper | 1 614 | 2 060 |
| Other | 1 465 | 1 439 |
| Operating Capital Total | 8 558 | 8 550 |
For further information, please contact:
Seppo Parvi, CFO, tel. +358 2046 21205
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Ulrika Lilja, EVP, Global Communication, tel. +46 1046 71668
www.storaenso.com
www.storaenso.com/investors
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 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) on the International OTCQX over-the-counter market.
STORA ENSO OYJ
For further information, please contact:
Seppo Parvi, CFO, tel. +358 2046 21205
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Ulrika Lilja, EVP, Global Communication, tel. +46 1046 71668