Stora Enso Fourth Quarter and Full Year Results 2009
Strong cash flow through working capital management and improved quarterly
earnings despite lower volumes due to reduced cost base; distribution to
shareholders EUR 0.20
STORA ENSO OYJ ANNUAL FINANCIAL STATEMENT RELEASE 4 February 2010 at 07.00 GMT
- EUR 496 million quarterly cash flow from operations - full year EUR 1 261
million
- EUR 138 million quarterly operating profit excluding NRI and fair valuations
- EUR 109 million improvement on a year ago
- Consumer Board back on stable earnings path - focus on further growth
- Strong Newsprint earnings due to solid and improving cost base
- Group will continue to seek pricing quality through managing business mix and
optimising production - including necessary capacity reductions
Summary of Fourth Quarter Results
--------------------------------------------------------------------------------
| Continuing Operations | | Q4/09 | 2009 | Q4/08 | 2008 |
--------------------------------------------------------------------------------
| Sales | EUR | 2 398.8 | 8 945.1 | 2 602.5 | 11 028.8 |
| | million | | | | |
--------------------------------------------------------------------------------
| EBITDA excl. NRI and | EUR | 242.1 | 822.7 | 163.3 | 1 027.2 |
| fair valuations | million | | | | |
--------------------------------------------------------------------------------
| Operating Profit excl. | EUR | 137.5 | 320.5 | 28.4 | 388.4 |
| NRI and Fair Valuations | million | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | EUR | 105.3 | -607.6 | -784.2 | -726.6 |
| (IFRS) | million | | | | |
--------------------------------------------------------------------------------
| Profit/loss before tax | EUR | 122.7 | 194.2 | -81.0 | 151.6 |
| excl. NRI | million | | | | |
--------------------------------------------------------------------------------
| Profit/loss before tax | EUR | 80.6 | -886.8 | -845.6 | -893.8 |
| | million | | | | |
--------------------------------------------------------------------------------
| Net profit/loss excl. | EUR | 76.0 | 153.2 | -67.2 | 142.8 |
| NRI | million | | | | |
--------------------------------------------------------------------------------
| Net profit/loss | EUR | 45.9 | -878.2 | -654.6 | -679.0 |
| | million | | | | |
--------------------------------------------------------------------------------
| EPS excl. NRI | EUR | 0.09 | 0.19 | -0.08 | 0.18 |
--------------------------------------------------------------------------------
| EPS | EUR | 0.05 | -1.12 | -0.82 | -0.86 |
--------------------------------------------------------------------------------
| CEPS excl. NRI | EUR | 0.31 | 0.94 | 0.06 | 0.99 |
--------------------------------------------------------------------------------
| ROCE excl. NRI | % | 7.5 | 3.9 | -0.8 | 3.4 |
--------------------------------------------------------------------------------
| ROCE excl. NRI and fair | % | 7.0 | 3.9 | 1.2 | 4.1 |
| valuations | | | | | |
--------------------------------------------------------------------------------
Fair valuations include synthetic options net of realised and open hedges, CO2
emission rights, and valuations of biological assets related to forest assets in
equity accounted investments.
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, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they
exceed one cent per share.
Message from CEO Jouko Karvinen:
“The year 2009 ended on a strong note for Stora Enso. The highlight of the year
- EUR 1 261 million cash flow from operations - is the result of active working
capital management that we started already in late 2008. In light of the
dramatic drop in demand, we promised a year ago that we would finance at least
two thirds of our capital expenditure of about EUR 400 million through working
capital improvement - the improvement was actually a lot more, EUR 500 million.
The second significant achievement is the cost improvements that we also started
early. That allowed us not only to maintain our margin level year on year with
volumes one fifth less, but more importantly enabled us to achieve margins and
absolute earnings clearly higher in the second half than the first half of the
year. Finally, net debt reduction of EUR 530 million in the most difficult
operating environment in decades should demonstrate to our stakeholders that our
strategy of acting early on things we can control, and not waiting for better
times or for others to act, has been and remains the right strategy.
“After three consecutive years of very significant if different challenges, we
could have hoped for an easier 2010. The good news is that, after implementation
of several improvement actions, Consumer Board is not only strong, but also
positioned for continued and further improving performance. We believe
Industrial Packaging is also well positioned for further growth with improvement
actions such as power plant investment in Poland, and the efforts to divest
laminating paper will improve the situation further. At the same time, we see
that following our early actions, our graphics paper businesses (newsprint,
magazine paper and coated fine paper) are now well positioned to get through yet
another challenging year in 2010. As we indicated already in October 2009, the
underlying structural supply and demand imbalances in newsprint and some other
graphical grades are putting pressure on pricing. This just underlines how
crucial our early actions were, such as significant cost and capacity cuts, as
well as cost-improving investments in for example power plants in Langerbrugge
and Maxau, which will be completed in the next few months.
“We will now not only make sure that already announced programmes will produce
the benefits promised, we will also take new measures when needed to stay on our
path of defending earnings quality through proactive business mix and capacity
management. Our production capacity needs to be in line with sustainably
profitable demand for our products, and we will therefore not hesitate to take
further temporary or permanent capacity cuts if necessary. We will also continue
our working capital ratio improvements that we started five quarters ago, even
though the completion of our power plant investments and seasonality will have a
limiting impact on absolute short-term cash flow. We are determined to stay on
our path and move even faster where possible. This, and only this, will enable
us to continue to build our future growth in fibre-based packaging, low-cost
pulp and other areas where we can create a sustainable earnings capability.”
Near-term Outlook
Global economic recovery is underway, but any pickup in demand for the Group's
products is forecast to be slow and insufficient to restore supply and demand
balance in the short term and alleviate overcapacity.
Demand for graphic paper is predicted to be somewhat better than in the
exceptionally poor first quarter of 2009, but the outlook still remains weak. In
Europe seasonal weakness in demand for newsprint and magazine paper is expected
to be partially offset by the anticipated gradual improvement in the economy. A
further seasonal improvement in demand for fine paper, especially uncoated fine
paper, is foreseen in the current quarter. Demand is forecast to be better than
a year ago for consumer board, industrial packaging and wood products.
In Europe market prices for publication paper grades are expected to remain
under pressure due to structural supply and demand imbalance. Uncoated fine
paper prices seem to have bottomed out, but coated fine paper prices remain
challenging. Prices are expected to improve slightly in consumer board and
industrial packaging, and stay unchanged in wood products, supported by improved
market balance and low product inventories.
In China demand for uncoated magazine paper is forecast to be weaker than a year
ago, and also seasonally weaker than in the fourth quarter of 2009 due to the
Chinese New Year holiday. Prices are expected to be higher than in the previous
quarter. Demand for coated fine paper is predicted to be stronger than a year
earlier with prices similar to the last quarter.
In Latin America demand for coated magazine paper is forecast to be stronger
than a year ago due to the recovery in national economies, but seasonally weaker
than in the previous quarter. Prices seem to have bottomed out and price
increases are foreseen.
The Group's cost deflation forecast before own actions is approximately 1% for
2010.
Markets
Compared with Q4/2008
Market demand in Europe was clearly weaker in publication paper and fine paper,
somewhat better in consumer board due to improved demand for cartonboard, and
largely unchanged in industrial packaging. Market demand for wood products
continued to decline year-on-year.
In Europe market prices in local currencies were higher for newsprint, largely
unchanged for consumer board and wood products, and slightly lower for magazine
paper. Prices were also lower for coated fine paper and clearly lower for
uncoated fine paper and industrial packaging.
Industry inventories were higher in newsprint, but lower in magazine paper, fine
paper and wood products.
In Latin America market demand for coated magazine paper was weaker and prices
were lower. In China market demand for coated fine paper was stronger and prices
were higher, whereas uncoated magazine paper market demand and prices
deteriorated.
Compared with Q3/2009
Market demand for publication paper and fine paper improved in Europe, mainly
due to seasonal factors. Market demand was also better in consumer board,
supported by growing demand in Eastern Europe, and in all industrial packaging
grades. Market demand for wood products remained low but unchanged on the
previous quarter, despite seasonal weakness towards the end of the year.
In Europe market prices were mostly unchanged in local currencies for newsprint,
stabilised by annual contracts, and also for magazine paper and consumer board.
Fine paper prices eroded while prices for industrial packaging and wood product
prices increased.
Industry inventories declined in newsprint, magazine paper and fine paper, but
increased slightly in wood products from very low levels.
In Latin America market demand for coated magazine paper declined somewhat, but
prices were unchanged. In China market demand for uncoated magazine paper
clearly improved but prices remained unchanged, whereas coated fine paper demand
was stable and prices rose.
Stora Enso Deliveries and Production
--------------------------------------------------------------------------------
| | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Chang | Change | Change |
| | 9 | 9 | 8 | | | e % | % | % 2009 |
| | | | | | | Q4/09 | Q4/09-Q | - 2008 |
| | | | | | | -Q4/0 | 3/09 | |
| | | | | | | 8 | | |
--------------------------------------------------------------------------------
| Paper and | 2 | 2 | 2 | 10 | 11 | -3.8 | 6.1 | -14.0 |
| board | 744 | 587 | 851 | 174 | 836 | | | |
| deliveries | | | | | | | | |
| (1 000 | | | | | | | | |
| tonnes) | | | | | | | | |
--------------------------------------------------------------------------------
| Paper and | 2 | 2 | 2 | 10 | 11 | -4.1 | -1.5 | -14.6 |
| board | 587 | 626 | 698 | 036 | 746 | | | |
| production | | | | | | | | |
| (1 000 | | | | | | | | |
| tonnes) | | | | | | | | |
--------------------------------------------------------------------------------
| Wood | 1 | 1 | 1 | 4 902 | 5 893 | -8.7 | 9.1 | -16.8 |
| products | 298 | 190 | 422 | | | | | |
| deliveries | | | | | | | | |
| (1 000 m3) | | | | | | | | |
--------------------------------------------------------------------------------
| Corrugated | 255 | 245 | 254 | 966 | 1 071 | 0.4 | 4.1 | -9.8 |
| packaging | | | | | | | | |
| deliveries | | | | | | | | |
| (million m2) | | | | | | | | |
--------------------------------------------------------------------------------
Mill closures and restructurings reduced comparative deliveries as follows for
the period Q1-Q4/09 compared with Q1-Q4/08: Summa Mill closure in January 2008
by some 39 000 tonnes of newsprint and 8 000 tonnes of magazine paper; Anjala
Mill restructuring in the first quarter of 2008 by some 25 000 tonnes of
magazine paper; Baienfurt Mill closure in December 2008 by some 153 000 tonnes
of cartonboard.
Q4/2009 Results (compared with Q4/2008)
Sales at EUR 2 398.8 million were EUR 203.7 million less than in the fourth
quarter of 2008. Deliveries were higher in Fine Paper, Consumer Board and
Industrial Packaging and lower in Newsprint, Magazine Paper and Wood Products.
Prices in local currencies were higher in Consumer Board but lower in all other
paper and board segments. Wood Products sales prices were unchanged.
Key Figures
--------------------------------------------------------------------------------
| EUR million | Q4/ | Q3/0 | Q4/0 | 2009 | 2008 | Change | Chang | Chang |
| | 09 | 9 | 8 | | | % | e % | e % |
| | | | | | | Q4/09- | Q4/09 | 2009- |
| | | | | | | Q4/08 | -Q3/0 | 2008 |
| | | | | | | | 9 | |
--------------------------------------------------------------------------------
| Continuing | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Sales | 2 | 2 | 2 | 8 | 11 | -7.8 | 7.5 | -18.9 |
| | 398 | 231. | 602. | 945.1 | 028.8 | | | |
| | .8 | 0 | 5 | | | | | |
--------------------------------------------------------------------------------
| EBITDA excl. | 242 | 255. | 163. | 822.7 | 1 | 48.3 | -5.4 | -19.9 |
| NRI and fair | .1 | 9 | 3 | | 027.2 | | | |
| valuations | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 137 | 131. | 28.4 | 320.5 | 388.4 | n/m | 4.6 | -17.5 |
| profit excl. | .5 | 5 | | | | | | |
| NRI and fair | | | | | | | | |
| valuations | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 147 | 152. | -19. | 324.9 | 318.8 | n/m | -3.3 | 1.9 |
| profit/loss | .4 | 5 | 5 | | | | | |
| excl. NRI | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 6.1 | 6.8 | -0.8 | 3.6 | 2.9 | n/m | -10.3 | 24.1 |
| margin excl. | | | | | | | | |
| NRI, % | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 105 | -502 | -784 | -607. | -726. | 113.4 | 121.0 | 16.4 |
| profit/loss | .3 | .6 | .2 | 6 | 6 | | | |
| (IFRS) | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 4.4 | -22. | -30. | -6.8 | -6.6 | 114.6 | 119.6 | -3.0 |
| profit/loss, % | | 5 | 1 | | | | | |
| of sales | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 122 | 106. | -81. | 194.2 | 151.6 | 251.5 | 15.3 | 28.1 |
| before tax and | .7 | 4 | 0 | | | | | |
| non-controlling | | | | | | | | |
| interests excl. | | | | | | | | |
| NRI | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 80. | -548 | -845 | -886. | -893. | 109.5 | 114.7 | 0.8 |
| before tax and | 6 | .7 | .6 | 8 | 8 | | | |
| non-controlling | | | | | | | | |
| interests | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit/loss | 76. | 92.5 | -67. | 153.2 | 142.8 | 213.1 | -17.8 | 7.3 |
| for the period | 0 | | 2 | | | | | |
| excl. NRI | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit/loss | 45. | -519 | -654 | -878. | -679. | 107.0 | 108.8 | -29.3 |
| for the period | 9 | .7 | .6 | 2 | 0 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ROCE from | 7.0 | 6.6 | 1.2 | 3.9 | 4.1 | n/m | 6.1 | -4.9 |
| continuing | | | | | | | | |
| operations | | | | | | | | |
| excl. NRI and | | | | | | | | |
| fair | | | | | | | | |
| valuations, % | | | | | | | | |
--------------------------------------------------------------------------------
| ROCE from | 7.5 | 7.7 | -0.8 | 3.9 | 3.4 | n/m | -2.6 | 14.7 |
| continuing | | | | | | | | |
| operations | | | | | | | | |
| excl. NRI, % | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.0 | 0.12 | -0.0 | 0.19 | 0.18 | 212.5 | -25.0 | 5.6 |
| share (EPS) | 9 | | 8 | | | | | |
| excl. NRI, EUR | | | | | | | | |
--------------------------------------------------------------------------------
| EPS (basic), | 0.0 | -0.6 | -0.8 | -1.12 | -0.86 | 106.1 | 107.6 | -30.2 |
| EUR | 5 | 6 | 2 | | | | | |
--------------------------------------------------------------------------------
| Cash earnings | 0.3 | 0.29 | 0.06 | 0.94 | 0.99 | n/m | 6.9 | -5.1 |
| per share | 1 | | | | | | | |
| (CEPS) excl. | | | | | | | | |
| NRI, EUR | | | | | | | | |
--------------------------------------------------------------------------------
| CEPS, EUR | 0.2 | 0.24 | 0.16 | 0.35 | 0.94 | 75.0 | 16.7 | -62.8 |
| | 8 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on | 3.6 | -39. | -40. | -16.2 | -10.1 | 108.8 | 109.2 | -60.4 |
| equity (ROE), | | 2 | 8 | | | | | |
| %* | | | | | | | | |
--------------------------------------------------------------------------------
| Debt/equity | 0.5 | 0.58 | 0.56 | 0.51 | 0.56 | -8.9 | -12.1 | -8.9 |
| ratio* | 1 | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 6.5 | 6.30 | 7.09 | 6.50 | 7.09 | -8.3 | 3.2 | -8.3 |
| share, EUR* | 0 | | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, | 44. | 44.4 | 46.2 | 44.7 | 46.2 | -3.2 | 0.7 | -3.2 |
| %* | 7 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number | 27 | 28 | 32 | 28 | 33 | -14.3 | -3.6 | -15.1 |
| of employees | 612 | 643 | 205 | 696 | 815 | | | |
--------------------------------------------------------------------------------
| Average number | | | | | | | | |
| of shares | | | | | | | | |
| (million) | | | | | | | | |
--------------------------------------------------------------------------------
| periodic | 788 | 788. | 788. | 788.6 | 788.6 | 0.0 | 0.0 | 0.0 |
| | .6 | 6 | 6 | | | | | |
--------------------------------------------------------------------------------
| cumulative | 788 | 788. | 788. | 788.6 | 788.6 | 0.0 | 0.0 | 0.0 |
| | .6 | 6 | 6 | | | | | |
--------------------------------------------------------------------------------
| cumulative, | 788 | 788. | 788. | 788.6 | 788.6 | 0.0 | 0.0 | 0.0 |
| diluted | .6 | 6 | 6 | | | | | |
--------------------------------------------------------------------------------
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, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they
exceed one cent per share.
Fair valuations include synthetic options net of realised and open hedges, CO2
emission rights, and valuations of biological assets related to forest assets in
equity accounted investments.
* Total operations
Reconciliation of Operating Profit
--------------------------------------------------------------------------------
| EUR million | Q4/ | Q3/ | Q4/ | 2009 | 2008 | Chang | Chang | Chang |
| | 09 | 09 | 08 | | | e % | e % | e % |
| | | | | | | Q4/09 | Q4/09 | 2009 |
| | | | | | | -Q4/0 | -Q3/0 | - |
| | | | | | | 8 | 9 | 2008 |
--------------------------------------------------------------------------------
| Profit from | 101 | 125 | 6.4 | 259. | 346. | n/m | -19.0 | -25.2 |
| operations, excl. | .7 | .5 | | 1 | 3 | | | |
| NRI | | | | | | | | |
--------------------------------------------------------------------------------
| Equity accounted | 35. | 6.0 | 22. | 61.4 | 42.1 | 62.7 | 496.7 | 45.8 |
| investments, | 8 | | 0 | | | | | |
| operational, | | | | | | | | |
| excl. | | | | | | | | |
| fair valuations | | | | | | | | |
--------------------------------------------------------------------------------
| Operating Profit | 137 | 131 | 28. | 320. | 388. | 384.2 | 4.6 | -17.5 |
| excl. NRI and | .5 | .5 | 4 | 5 | 4 | | | |
| Fair | | | | | | | | |
| Valuations | | | | | | | | |
--------------------------------------------------------------------------------
| Fair valuations | 9.9 | 21. | -47 | 4.4 | -69. | 120.7 | -52.9 | 106.3 |
| | | 0 | .9 | | 6 | | | |
--------------------------------------------------------------------------------
| Operating | 147 | 152 | -19 | 324. | 318. | n/m | -3.3 | 1.9 |
| Profit/Loss, excl. | .4 | .5 | .5 | 9 | 8 | | | |
| NRI | | | | | | | | |
--------------------------------------------------------------------------------
| NRI | -42 | -65 | -76 | -932 | -1 | 94.5 | 93.6 | 10.8 |
| | .1 | 5.1 | 4.7 | .5 | 045. | | | |
| | | | | | 4 | | | |
--------------------------------------------------------------------------------
| Operating | 105 | -50 | -78 | -607 | -726 | 113.4 | 121.0 | 16.4 |
| Profit/Loss (IFRS) | .3 | 2.6 | 4.2 | .6 | .6 | | | |
--------------------------------------------------------------------------------
Q4/2009 Results (compared with Q4/2008) (continued)
Operating profit at EUR 137.5 million excluding non-recurring items and fair
valuations was EUR 109.1 million higher than a year ago. Even though sales
decreased by 8%, operating margin increased from 0% to 6% through reductions in
variable and fixed costs. All the business segments were profitable. Operating
profit increased by EUR 38.6 million in Consumer Board, by EUR 33.9 million in
Wood Products and by EUR 31.8 million in Fine Paper, decreased slightly in
Industrial Packaging, but deteriorated by EUR 15.6 million in Magazine Paper and
by EUR 11.7 million in Newsprint. In the segment Other there was an operating
loss excluding non-recurring items and fair valuations of EUR 26.6 (EUR 48.2)
million.
In the fourth quarter of 2009, the Group curtailed paper and board production by
15%, pulp production by 19% and sawnwood production by 15% of capacity.
Lower sales prices in local currencies decreased the operating profit of the
paper and board segments by EUR 94 million. Wood Products sales prices were
unchanged. Sales volumes were higher in Fine Paper, Consumer Board and
Industrial Packaging, but lower in Newsprint, Magazine Paper and Wood Products,
resulting in a net operating profit decrease of EUR 19 million.
Lower fibre costs increased Group operating profit by EUR 117 million. Lower
other variable costs, including energy, chemicals and recycled paper, increased
Group operating profit by EUR 80 million. The decrease of EUR 42 million in
personnel and other fixed costs increased operating profit. Maintenance costs
had a negative impact of EUR 30 million, including the catch-up of the
write-down of spare parts on Newsprint, Fine Paper and Magazine Paper
profitability. Lower depreciation improved operating profit by EUR 21 million.
Deliveries of wood to the Group's mills were 1% more than a year earlier at 8.1
million cubic metres.
The share of the operational results of equity accounted investments, excluding
non-recurring items and fair valuations, amounted to EUR 35.8 (EUR 22.0)
million, with the largest contribution from Bergvik Skog and Tornator due to
good harvesting volumes. Operating profit includes a net effect of EUR 9.9 (EUR
-47.9) million for fair valuations related to the accounting of share-based
compensation, Total Return Swaps (TRS), CO2 emission rights and IAS 41 forest
valuations in equity accounted investments.
Stora Enso has recorded EUR 42 million non-recurring items which included market
court penalty, fixed asset and share write-downs, provisions and other items,
including the creation of the joint venture Montes del Plata in Uruguay in the
fourth quarter of 2009, as announced on 22 January 2010. The NRIs had a
beneficial impact of approximately EUR 12 million on tax.
Net financial items were EUR -24.7 (EUR -61.4) million. Net interest expenses
decreased from EUR 42.9 million to EUR 21.2 million, mainly due to lower
interest rates. The Group has an interest rate risk policy of synchronising
interest costs with earnings over the business cycle by swapping long-term fixed
interest rates to short-term floating interest rates. Net foreign exchange gains
on borrowings, currency derivatives and bank accounts amounted to EUR 1.3 (loss
EUR 16.4) million. The net loss from other financial items amounted to EUR 4.8
(loss EUR 2.1) million, comprising income of EUR 1.4 million from
payment-in-kind notes, fair valuation gains of EUR 15.0 million on interest rate
swaps, fair valuation gains of EUR 4.7 million on long-term debt and other
expenses of EUR 25.9 million.
The fair valuation gains and other expenses include fair value and capital gains
totalling EUR 20.5 million and EUR 25.7 million respectively, relating to the
unwinding of the last five years of US dollar interest rate swaps used to hedge
bonds denominated in US dollars maturing in 2016. A loss of EUR 54.4 million was
recognised due to the termination of the hedge relationship which will be
amortised until 2016 resulting in a quarterly reduction of interest costs of
approximately EUR 2 million. The unwinding of the interest rate swaps resulted
in a cash inflow of EUR 25.7 million.
Group capital employed was EUR 7 776.3 million on 31 December 2009, a net
decrease of EUR 998.2 million due to fixed asset impairments, restructuring
costs and decrease in the fair value of listed and unlisted securities.
January-December 2009 Results (compared with previous year)
Sales at EUR 8 945.1 million were EUR 2 083.7 million lower than the EUR
11 028.8 million a year earlier due to lower deliveries in all segments and
lower prices in local currencies in Fine Paper, Industrial Packaging and Wood
Products.
Operating profit excluding non-recurring items and fair valuations decreased by
EUR 67.9 million to EUR 320.5 million. Although sales decreased by 19%,
operating margin was maintained at 3% through reductions in variable and fixed
costs. Wood Products reduced its operating loss by EUR 59.5 million from EUR
67.5 million to EUR 8.0 million. Operating profit increased by EUR 57.6 million
on Consumer Board, but decreased by EUR 56.3 million in Industrial Packaging, by
EUR 48.5 million in Magazine Paper, by EUR 47.7 million in Fine Paper and by EUR
12.1 million in Newsprint. In the segment Other there was an operating loss of
EUR 117.1 (EUR 77.4) million.
Sales prices in local currencies were higher in Magazine Paper and Consumer
Board, unchanged in Newsprint but lower in Fine Paper, Industrial Packaging and
Wood Products, resulting in an overall negative impact of EUR 174 million on
operating profit. The effect of adverse currency movements on sales prices
reduced operating profit by a further EUR 159 million. Lower sales volumes in
all segments decreased operating profit by EUR 524 million.
Lower fibre costs increased Group operating profit by approximately EUR 247
million including EUR 28 million correction of the wood inventory error
identified in the third quarter 2009 results. Lower costs for chemicals and
fillers increased operating profit by EUR 73 million and lower other variable
costs, including energy and logistics, increased operating profit by EUR 94
million. Personnel and other fixed costs were reduced by EUR 176 million through
cost-saving measures and temporary production curtailments. Lower maintenance
costs increased operating profit by EUR 55 million. Lower depreciation improved
operating profit by EUR 124 million. Deliveries of wood to the Group's mills
were 21% less than in the year before at 30 million cubic metres.
Net financial items were EUR -279.2 (EUR -167.2) million. Net interest expenses
decreased by EUR 64.5 million to EUR 100.7 million and foreign exchange losses
increased from EUR 15.3 million to EUR 29.1 million. The net loss from other
financial items amounted to EUR 149.4 (gain EUR 13.3) million, including EUR
148.5 million due to the impairment of the NewPage vendor note. The remaining
loss of EUR 0.9 million comprises income of EUR 13.6 million from
payment-in-kind notes, fair valuation gains of EUR 8.3 million on interest rate
swaps, fair valuation gains of EUR 9.7 million on long-term debt and other
expenses of EUR 32.5 million.
Q4/2009 Results (compared with Q3/2009)
Sales at EUR 2 398.8 million were EUR 167.8 million higher than the previous
quarter's EUR 2 231.0 million due to higher sales prices in local currencies in
Consumer Board and Wood Products and higher sales volumes in all segments except
Magazine Paper. Sales prices in local currencies remained unchanged in
Newsprint, Fine Paper and Industrial Packaging, but declined slightly in
Magazine Paper. Operating profit excluding non-recurring items and fair
valuations was slightly higher than the previous quarter at EUR 137.5 million.
Group capital employed was EUR 7 776.3 million on 31 December 2009, a net
decrease of EUR 116.5 million mainly due to reduced working capital.
Operating profit excluding NRI increased by EUR 6.5 million to EUR 41.3 million
in Newsprint, by EUR 5.6 million to EUR 15.0 million in Wood Products and by EUR
1.7 million to EUR 22.1 million in Fine Paper. Magazine Paper operating profit
decreased by EUR 26.5 million due to seasonal increase in maintenance costs,
including the catch-up of the write-down of spare parts, and the cost of
restarting production at Sunila Pulp Mill. Consumer Board operating profit
decreased by EUR 22.0 million to EUR 42.9 million due to the annual maintenance
stoppages at Skoghall and Imatra mills, and the board machine upgrade at Imatra.
Industrial Packaging operating profit decreased by EUR 7.4 million to EUR 2.9
million. In the segment Other there was an operating loss of EUR 26.6 (EUR 44.9)
million. The share of the operational results of equity accounted investments,
excluding non-recurring items and fair valuations, amounted to EUR 35.8 (EUR
6.0) million, with the largest contribution from Bergvik Skog and Tornator due
to good harvesting volumes.
Higher sales prices increased operating profit by EUR 15 million and higher
sales volumes increased operating profit by EUR 22 million. Lower fibre costs
increased operating profit by EUR 13 million and lower other variable costs,
including energy, chemicals and logistics, increased operating profit by EUR 7
million. Seasonally higher maintenance costs decreased operating profit by EUR
57 million, with the largest impact in Consumer Board, Newsprint and Magazine
Paper, including the catch-up of the write-down of spare parts in Newsprint,
Fine Paper and Magazine Paper. Personnel and other fixed costs decreased
operating profit by EUR 22 million.
Capital Structure
--------------------------------------------------------------------------------
| EUR million | 31 Dec | 30 Sep | 30 Jun | 31 Mar | 31 Dec |
| | 09 | 09 | 09 | 09 | 08 |
--------------------------------------------------------------------------------
| Operative fixed assets | 5 936.2 | 6 037.2 | 6 593.7 | 6 648.8 | 6 853.7 |
--------------------------------------------------------------------------------
| Equity accounted | 1 481.3 | 1 177.3 | 1 117.9 | 1 063.5 | 1 042.5 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Operative working | 1 171.2 | 1 471.0 | 1 540.6 | 1 435.4 | 1 674.7 |
| capital | | | | | |
--------------------------------------------------------------------------------
| Non-current | -498.1 | -500.2 | - 482.6 | -491.1 | -513.6 |
| interest-free items, net | | | | | |
--------------------------------------------------------------------------------
| Operating Capital Total | 8 090.6 | 8 185.3 | 8 769.6 | 8 656.6 | 9 057.3 |
--------------------------------------------------------------------------------
| Net tax liabilities | -314.3 | -292.5 | -276.2 | -264.4 | -282.8 |
--------------------------------------------------------------------------------
| Capital Employed | 7 776.3 | 7 892.8 | 8 493.4 | 8 392.2 | 8 774.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to | 5 124.3 | 4 968.1 | 5 518.8 | 5 382.3 | 5 594.0 |
| Company shareholders | | | | | |
--------------------------------------------------------------------------------
| Non-controlling | 58.2 | 57.0 | 57.0 | 57.3 | 56.5 |
| interests | | | | | |
--------------------------------------------------------------------------------
| Net interest-bearing | 2 593.8 | 2867.7 | 2 917.6 | 2 952.6 | 3 124.0 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Financing Total | 7 776.3 | 7 892.8 | 8 493.4 | 8 392.2 | 8 774.5 |
--------------------------------------------------------------------------------
Financing Q4/2009 (compared with Q3/2009)
Cash flow from operations was EUR 495.5 (EUR 325.5) million and cash flow after
investing activities EUR 393.6 (EUR 216.1) million, which is the strongest
quarterly cash flow since the fourth quarter of 2006. At the end of the period,
interest-bearing net liabilities of the Group were EUR 2 593.8 million, a
decrease of EUR 273.9 million.
Total unutilised committed credit facilities remained unchanged at EUR 1 400
million, and cash and cash equivalents net of overdrafts increased by EUR 340.2
million to EUR 877.0 million. In addition, Stora Enso has access to various
long-term sources of funding up to EUR 700 million.
The debt/equity ratio at 31 December 2009 was 0.51 (0.58). The currency effect
on equity was positive EUR 30.3 million net of the hedging of equity translation
risks. The fair valuations of unlisted securities, mainly related to the
unlisted Finnish power supply company Pohjolan Voima, included within
available-for-sale assets increased equity by EUR 74.4 million. The increase in
the fair valuation of Pohjolan Voima was mainly due to higher electricity
prices.
Financing Q4/2009 (compared with Q4/2008)
At the end of the fourth quarter of 2009 Stora Enso had current borrowings of
EUR 1 038.3 million compared with EUR 1 068.3 million at the end of the fourth
quarter of 2008. Cash and cash equivalents net of overdrafts at the end of the
fourth quarter of 2009 amounted to EUR 877.0 million, compared with EUR 372.6
million at the end of the fourth quarter of 2008.
Cash Flow
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Change | Change | Chang |
| | 9 | 9 | 8 | | | % | % | e % |
| | | | | | | Q4/09- | Q4/09- | 2009 |
| | | | | | | Q4/08 | Q3/09 | - |
| | | | | | | | | 2008 |
--------------------------------------------------------------------------------
| Continuing | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 105. | -502 | -784 | -607 | -726. | 113.4 | 121.0 | 16.4 |
| profit/loss | 3 | .6 | .2 | .6 | 6 | | | |
--------------------------------------------------------------------------------
| Depreciation | 101. | 693. | 824. | 1 | 1 | -87.7 | -85.4 | -12.6 |
| and other | 1 | 2 | 8 | 262. | 443.2 | | | |
| non-cash items | | | | 0 | | | | |
--------------------------------------------------------------------------------
| Change in | 289. | 134. | 196. | 606. | 31.8 | 47.4 | 114.3 | n/m |
| working | 1 | 9 | 1 | 5 | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Cash Flow from | 495. | 325. | 236. | 1 | 748.4 | 109.3 | 52.2 | 68.5 |
| Operations | 5 | 5 | 7 | 260. | | | | |
| | | | | 9 | | | | |
--------------------------------------------------------------------------------
| Capital | -101 | -109 | -223 | -423 | -704. | 54.4 | 6.9 | 39.9 |
| expenditure | .9 | .4 | .5 | .7 | 7 | | | |
--------------------------------------------------------------------------------
| Cash Flow | 393. | 216. | 13.2 | 837. | 43.7 | n/m | 82.1 | n/m |
| after | 6 | 1 | | 2 | | | | |
| Investing | | | | | | | | |
| Activities | | | | | | | | |
--------------------------------------------------------------------------------
| Discontinued | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | 0.0 | 0.0 | 0.0 | 0.0 | 51.5 | n/a | n/a | n/a |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
| after | | | | | | | | |
| investing | | | | | | | | |
| activities | | | | | | | | |
--------------------------------------------------------------------------------
| Total Cash | 393. | 216. | 13.2 | 837. | 95.2 | n/m | 82.1 | n/m |
| Flow after | 6 | 1 | | 2 | | | | |
| Investing | | | | | | | | |
| Activities | | | | | | | | |
--------------------------------------------------------------------------------
Capital Expenditure for 2009
Capital expenditure for the year 2009 totalled EUR 423.7 million, which is 77%
of depreciation for the full year 2009. Stora Enso's annual depreciation will be
about EUR 500 million in 2010. The target capital expenditure for the Group for
the full year 2010 is approximately EUR 400 million.
The main projects during 2009 were power plants and energy-related projects at
existing mills (EUR 173 million), development of existing production (EUR 78
million) and plantations in South America and China (EUR 36 million).
Short-term Risks and Uncertainties
The main short-term risks and uncertainties are related to possible decreases in
graphic paper prices due to structural overcapacity, a large increase in RCP
costs and the effect of possible oil and energy cost increases.
Energy sensitivity analysis for 2010: the direct effect on 2010 operating profit
of a 10% change in electricity and oil market prices would be about EUR 15
million annual impact, after the effect of hedges.
Wood sensitivity analysis for 2010: the direct effect on 2010 operating profit
of a 10% change in wood prices would be about EUR 190 million annual impact.
Fourth Quarter Events
October
On 9 October 2009 Stora Enso announced that its co-determination negotiations at
Tolkkinen Sawmill in Finland had been concluded and that Tolkkinen Sawmill would
be permanently closed down by the end of 2009. The closure has reduced Stora
Enso's number of employees by 41 and its annual production capacity by 260 000
m3 of sawn wood.
On 13 October 2009 Stora Enso announced that its Nomination Committee had been
appointed. The composition of the Committee is as follows: Claes Dahlbäck
(Chairman of the Board of Directors), Ilkka Niemi (Vice Chairman of the Board of
Directors), Marcus Wallenberg (appointed by shareholder FAM) and Keijo Suila
(appointed by shareholder Solidium). Keijo Suila is the Chairman of the
Nomination Committee.
On 16 October 2009 Stora Enso announced that Stora Enso and Arauco had completed
the acquisition of the majority of Grupo ENCE's operations in Uruguay announced
on 18 May 2009. The joint acquisition on a 50/50 basis included approximately
130 000 hectares of owned land and plantations, 6 000 hectares of leased lands
and other operations owned by Grupo ENCE in the central and western areas of
Uruguay. Stora Enso and Arauco have established a 50/50 joint venture Montes del
Plata to combine their existing assets in Uruguay. The parties have integrated
the assets acquired from Grupo ENCE into this joint venture, creating a total
land base of approximately 250 000 hectares, nearly half of which is planted
with hardwood and softwood.
November
On 30 November 2009 Stora Enso announced that it was restarting production at
Sunila Pulp Mill in Finland as the state of the pulp market had improved since
the beginning of the summer. However, uncertainties remain concerning trends in
the market, the profitability of Sunila Mill in the long term and the
availability of reasonably priced wood in Finland. This spring Stora Enso will
therefore reassess the option of permanently closing down Sunila Pulp Mill.
Production at the mill had resumed by the end of the year.
December
On 3 December 2009 Stora Enso announced that it had been ordered by the Finnish
Market Court to pay a EUR 30 million penalty for collaboration and exchange of
information with other forest products companies concerning prices for
purchasing roundwood in Finland from 1997 to 2004. In its ruling issued on 3
December 2009, the Finnish Market Court found that Stora Enso, UPM-Kymmene and
Metsäliitto Cooperative had infringed the Act on Competition Restrictions by
exchanging detailed information. Although the companies had not been proved to
have agreed prices for purchasing roundwood, the Market Court regarded the
collaboration as intended to stabilise roundwood prices. In the opinion of the
Market Court, no specification of the economic benefit of the infringement of
competition restrictions had been presented. On 21 December 2009 Stora Enso
announced that it had decided to refrain from appealing to the Supreme
Administrative Court against the ruling of the Finnish Market Court. However,
the Group emphasised that that did not mean the ruling of the Finnish Market
Court was right in Stora Enso's opinion.
On 18 December 2009 Stora Enso announced that it had signed the United Nations
Global Compact CEO Water Mandate, making Stora Enso the first paper and
packaging company to endorse this initiative. The CEO Water Mandate is an
initiative that encourages businesses and industry to create and realise
sustainable water strategies.
Restructuring Actions
On 23 April 2009 Stora Enso announced that it was reorganising its operations
with the aim of reducing annual fixed costs by EUR 250 million, mainly through
savings in administration. Saving plans are now being implemented in various
parts of administration, including Sales and Marketing. The majority of the cost
reductions were achieved in 2009. The remaining planned cost reductions will be
achieved by the end of 2010, so the full impact of this Next Step programme will
be apparent in Stora Enso's operating profit from 2011 onwards. The majority of
the co-determination procedures were completed during 2009 and actual employment
reductions are underway. The final number of employees affected will depend on
the outcome of the remaining co-determination procedures.
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 8 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 as an interim
measure. 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
licenses in the municipality of Eunápolis in response to claims by a state
prosecutor that Veracel's plantations exceeded the legal limits, which Veracel
disputes.
Inspections by Competition Authorities
In 2007, following US Federal District Court trial, Stora Enso was found not
guilty of charges by the US Department of Justice relating to practices in the
sale of coated magazine paper in the USA in 2002 and 2003. Coincident with this
case, Stora Enso has been named in a number of class action lawsuits filed in
the USA which still are pending. No provisions have been made in Stora Enso's
accounts for these lawsuits.
Changes in Group Management and Organisational Structure
On 23 April 2009 Stora Enso announced a new organisational structure and new
Group Executive Team with immediate effect. The Business Areas are now:
Publication Paper (comprising the former Newsprint & Book Paper and Magazine
Paper) headed by Juha Vanhainen
Packaging (comprising the former Consumer Board and Industrial Packaging) headed
by Mats Nordlander
Fine Paper headed by Hannu Alalauri
Wood Products headed by Hannu Kasurinen
As of 23 April 2009, the Group Executive Team comprises the following eight
members:
Jouko Karvinen, CEO
Hannu Alalauri, EVP, Fine Paper
Hannu Kasurinen, EVP, Wood Products
Mats Nordlander, EVP, Packaging and regional responsibility for Asia Pacific
Markus Rauramo, CFO
Bernd Rettig, EVP, Technology and Strategy, Country Manager Germany
Elisabet Salander Björklund, EVP, Wood Supply, HR, Sustainability, Country
Manager Sweden, regional responsibility for Latin America
Juha Vanhainen, EVP, Publication Paper, Country Manager Finland
The changes above do not affect transparent external segment reporting.
Personnel
On 31 December 2009 there were 27 390 employees in the Group, 4 277 less than at
the end of 2008. The average number of employees decreased by 5 119 persons
during the year to 28 696. The decrease was due to restructuring, including mill
closures and Finnish maintenance outsourcing.
Share Capital
No conversions were recorded during the quarter.
On 31 December 2009 Stora Enso had 177 150 084 A shares and 612 388 415 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
On 4 February 2010 Stora Enso announced that Stora Enso's and Arauco's
joint-venture company in Uruguay, Montes del Plata, has decided to initiate a
feasibility study on Punta Pereira as the site for a possible future pulp mill.
On 4 February 2010 Stora Enso also announced Stora Enso Nomination Committee's
proposals to the Annual General Meeting on 31 March 2010 concerning members of
the Board of Directors.
Annual General Meeting
The Annual General Meeting (AGM) will be held at 16.00 (Finnish time) on
Wednesday 31 March 2010 at Marina Congress Center, Katajanokanlaituri 6,
Helsinki, Finland.
The proposals relating to 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. The Annual
Report of Stora Enso Oyj, including the Company's annual accounts, the report of
the Board of Directors and the auditor's report will be available on Stora
Enso's website at www.storaenso.com/investors as a pdf document during the week
commencing Monday 22 February 2010. The decision proposals and the Annual Report
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 at www.storaenso.com/agm from 14 April
2010.
Resolution on the use of the profit shown on the balance sheet and the covering
of losses as well as the distribution of funds
The Board of Directors proposes to the AGM that the parent company's loss for
the accounting period ended 31 December 2009 and the losses from previous
periods evidenced in the parent company's balance sheet, in aggregate
approximately EUR 1 251,3 million, be covered through the decrease of the parent
company's fund for invested unrestricted equity by the same amount.
The Board of Directors further proposes to the AGM of the Company that EUR 0.20
per share, a maximum aggregate of approximately EUR 158 million, be distributed
to the shareholders from the parent company's fund for invested unrestricted
equity (the Distribution).
The Distribution shall be paid to shareholders that on the Distribution record
date, 7 April 2010, 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. The Distribution
payable for Euroclear Sweden registered shares will be forwarded by Euroclear
Sweden AB and paid in Swedish krona. The Distribution payable to ADR holders
will be forwarded by Deutsche Bank Trust Company Americas and paid in US
dollars.
The Board of Directors proposes to the AGM that the Distribution shall be paid
by the Company on 20 April 2010.
This report is unaudited.
Helsinki, 4 February 2010
Stora Enso Oyj
Board of Directors
Segments Q4/09 compared with Q4/08
Newsprint and Book Paper
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Change | Change | Change |
| | 9 | 9 | 8 | | | % | % | % |
| | | | | | | Q4/09- | Q4/09- | 2009-2 |
| | | | | | | Q4/08 | Q3/09 | 008 |
--------------------------------------------------------------------------------
| Sales | 359. | 330. | 414. | 1 | 1 | -13.1 | 9.0 | -16.9 |
| | 6 | 0 | 0 | 325. | 594.7 | | | |
| | | | | 8 | | | | |
--------------------------------------------------------------------------------
| EBITDA* | 63.3 | 58.6 | 83.6 | 228. | 255.2 | -24.3 | 8.0 | -10.6 |
| | | | | 2 | | | | |
--------------------------------------------------------------------------------
| Operating | 41.3 | 34.8 | 53.0 | 128. | 140.8 | -22.1 | 18.7 | -8.6 |
| profit* | | | | 7 | | | | |
--------------------------------------------------------------------------------
| % of sales | 11.5 | 10.5 | 12.8 | 9.7 | 8.8 | -10.2 | 9.5 | 10.2 |
--------------------------------------------------------------------------------
| ROOC, %** | 15.9 | 12.6 | 18.6 | 11.9 | 12.1 | -14.5 | 26.2 | -1.7 |
--------------------------------------------------------------------------------
| Deliveries, 1 | 675 | 622 | 745 | 2 | 2 870 | -9.4 | 8.5 | -14.5 |
| 000 t | | | | 453 | | | | |
--------------------------------------------------------------------------------
| Production, 1 | 651 | 627 | 699 | 2 | 2 808 | -6.9 | 3.8 | -12.7 |
| 000 t | | | | 451 | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital
Newsprint and book paper sales were EUR 359.6 million, down 13% on the fourth
quarter of 2008 due to lower sales prices and volumes. Operating profit was EUR
41.3 million, down 22% on the fourth quarter of 2008 due to lower deliveries and
prices outside Europe.
Markets
Compared with Q4/2008
In Europe demand was weaker, mainly due to the decrease in classified and other
advertising that adversely affected free newspapers especially hard after their
years of growth. Prices and industry inventories were higher than a year ago.
Compared with Q3/2009
Demand improved slightly due to seasonal factors and low customer inventories,
so order books increased and industry inventories decreased. Annual contracts
kept European prices steady.
Magazine Paper
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Change | Change | Change |
| | 9 | 9 | 8 | | | % | % | % |
| | | | | | | Q4/09- | Q4/09- | 2009-2 |
| | | | | | | Q4/08 | Q3/09 | 008 |
--------------------------------------------------------------------------------
| Sales | 430. | 469. | 544. | 1 | 2 | -21.0 | -8.3 | -23.0 |
| | 2 | 0 | 3 | 676. | 177.0 | | | |
| | | | | 0 | | | | |
--------------------------------------------------------------------------------
| EBITDA* | 28.8 | 55.3 | 53.2 | 145. | 223.5 | -45.9 | -47.9 | -35.0 |
| | | | | 3 | | | | |
--------------------------------------------------------------------------------
| Operating | 4.1 | 30.6 | 19.7 | 40.3 | 88.8 | -79.2 | -86.6 | -54.6 |
| profit* | | | | | | | | |
--------------------------------------------------------------------------------
| % of sales | 1.0 | 6.5 | 3.6 | 2.4 | 4.1 | -72.2 | -84.6 | -41.5 |
--------------------------------------------------------------------------------
| ROOC, %** | 1.3 | 9.3 | 5.4 | 3.1 | 6.0 | -75.9 | -86.0 | -48.3 |
--------------------------------------------------------------------------------
| Deliveries, 1 | 586 | 565 | 709 | 2 | 2 786 | -17.3 | 3.7 | -22.8 |
| 000 t*** | | | | 150 | | | | |
--------------------------------------------------------------------------------
| Production, 1 | 551 | 555 | 644 | 2 | 2 774 | -14.4 | -0.7 | -23.9 |
| 000 t*** | | | | 110 | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital *** Excluding pulp
Magazine paper sales were EUR 430.2 million, down 21% on the fourth quarter of
2008 mainly due to weaker demand. Operating profit was EUR 4.1 million, down 79%
on the fourth quarter of 2008 due to lower sales volumes and prices, and higher
maintenance and other fixed costs.
Sunila Pulp Mill resumed production on 1 December 2009 and prime quality pulp
was being produced by Christmas.
Markets
Compared with Q4/2008
In Europe demand for magazine paper was weaker than a year earlier due to the
sharp decline in advertising expenditure. Prices for coated and uncoated
magazine paper were raised at the start of 2009 but fell back in some markets in
the second half to end the year slightly down. Industry inventories were lower.
In Latin America demand for coated magazine paper was weaker and prices were
lower on average.
In China uncoated magazine paper demand and prices were substantially down on a
year ago.
Compared with Q3/2009
In Europe demand for magazine paper strengthened, partly for seasonal reasons.
Prices for both grades were steady in Europe, but came under pressure in North
and South America due to weak demand in the USA and exchange rate trends.
Industry inventories in both grades dropped to their lowest levels for the year.
In Latin America demand for coated magazine paper weakened slightly, but prices
were steady.
In China demand for uncoated magazine paper improved while prices remained
stable.
Fine Paper
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Change | Change | Change |
| | 9 | 9 | 8 | | | % | % | % |
| | | | | | | Q4/09- | Q4/09- | 2009-2 |
| | | | | | | Q4/08 | Q3/09 | 008 |
--------------------------------------------------------------------------------
| Sales | 492. | 449. | 484. | 1 | 2 | 1.5 | 9.4 | -13.6 |
| | 0 | 6 | 8 | 823. | 111.7 | | | |
| | | | | 9 | | | | |
--------------------------------------------------------------------------------
| EBITDA* | 44.7 | 42.0 | 19.5 | 134. | 219.8 | 129.2 | 6.4 | -38.8 |
| | | | | 5 | | | | |
--------------------------------------------------------------------------------
| Operating | 22.1 | 20.4 | -9.7 | 32.7 | 80.4 | n/m | 8.3 | -59.3 |
| profit/loss* | | | | | | | | |
--------------------------------------------------------------------------------
| % of sales | 4.5 | 4.5 | -2.0 | 1.8 | 3.8 | n/m | 0.0 | -52.6 |
--------------------------------------------------------------------------------
| ROOC, %** | 9.3 | 7.3 | -2.5 | 2.8 | 5.3 | n/m | 27.4 | -47.2 |
--------------------------------------------------------------------------------
| Deliveries, 1 | 694 | 616 | 622 | 2 | 2 730 | 11.6 | 12.7 | -7.0 |
| 000 t | | | | 538 | | | | |
--------------------------------------------------------------------------------
| Production, 1 | 652 | 639 | 611 | 2 | 2 707 | 6.7 | 2.0 | -7.4 |
| 000 t | | | | 507 | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital
Fine paper sales were EUR 492.0 million, up 1.5% on the fourth quarter of 2008
due to higher sales volumes. Operating profit was EUR 22.1 million, an
improvement of EUR 31.8 million on the fourth quarter of 2008 due to higher
volumes and generally lower variable and fixed costs. Although the whole-year
operating profit was much less in 2009 than 2008, operating profit recovered in
the second half of 2009 due to cost reductions and somewhat improved demand. The
annual maintenance stoppage at Nymölla Mill in Sweden was taken during the
fourth quarter of 2009.
Paper machine (PM) 8 at Imatra Mills will be permanently shut down in March,
decreasing uncoated fine paper capacity by 210 000 tonnes.
Markets
Compared with Q4/2008
In Europe demand for coated fine paper was weaker than a year ago due to
advertising cutbacks, and demand for uncoated fine paper was slightly weaker
following the economic slowdown. Increased shipments to overseas improved the
order stock of uncoated fine paper. Coated fine paper prices were lower and
uncoated fine paper prices much lower than a year earlier. Industry inventories
were lower in both grades.
In China demand for coated fine paper was good and prices were higher than a
year ago.
Compared with Q3/2009
In Europe demand for coated and uncoated fine paper recovered, partly for
seasonal reasons, but prices eroded further. However, industry inventories
declined in both grades.
In China coated fine paper demand was stable, but prices rose.
Consumer Board
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Change | Change | Change |
| | 9 | 9 | 8 | | | % | % | % |
| | | | | | | Q4/09- | Q4/09- | 2009-2 |
| | | | | | | Q4/08 | Q3/09 | 008 |
--------------------------------------------------------------------------------
| Sales | 505. | 470. | 506. | 1 | 2 | -0.3 | 7.3 | -15.1 |
| | 0 | 7 | 3 | 895. | 231.9 | | | |
| | | | | 9 | | | | |
--------------------------------------------------------------------------------
| EBITDA* | 74.1 | 93.7 | 31.6 | 284. | 242.0 | 134.5 | -20.9 | 17.5 |
| | | | | 3 | | | | |
--------------------------------------------------------------------------------
| Operating | 42.9 | 64.9 | 4.3 | 164. | 107.3 | n/m | -33.9 | 53.7 |
| profit* | | | | 9 | | | | |
--------------------------------------------------------------------------------
| % of sales | 8.5 | 13.8 | 0.8 | 8.7 | 4.8 | n/m | -38.4 | 81.3 |
--------------------------------------------------------------------------------
| ROOC, %** | 14.5 | 21.3 | 1.3 | 13.7 | 7.2 | n/m | -31.9 | 90.3 |
--------------------------------------------------------------------------------
| Deliveries, 1 | 560 | 567 | 546 | 2 | 2 442 | 2.6 | -1.2 | -9.9 |
| 000 t*** | | | | 201 | | | | |
--------------------------------------------------------------------------------
| Production, 1 | 512 | 589 | 526 | 2 | 2 437 | -2.7 | -13.1 | -11.3 |
| 000 t*** | | | | 161 | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital *** Excluding pulp
Consumer board sales were EUR 505.0 million, unchanged on the fourth quarter of
2008. The positive impact of the increase in board sales volumes was largely
offset by the one-third decrease in market pulp sales because Enocell Pulp Mill
remained temporarily shut down for some of the fourth quarter of 2009. Operating
profit was EUR 42.9 million, up EUR 38.6 million on the fourth quarter of 2008
due to higher board sales, a better sales mix and generally lower variable
costs.
In Finland the major quality and productivity upgrade of board machine (BM) 4 at
Imatra Mills was completed and Enocell Pulp Mill resumed production in early
November.
The already announced plan to upgrade polymer coating (PE) is proceeding in
stages through investments at Imatra Mills in Finland during 2010 and 2011. The
coating machine at Karhula in Finland is now scheduled to be permanently shut
down in summer 2011.
Markets
Compared with Q4/2008
Demand for consumer board was stronger than in the very difficult fourth quarter
of 2008, driven by better demand for cartonboard. Board prices were relatively
stable on average, with some variation between segments.
Compared with Q3/2009
Contrary to the normal seasonal pattern, demand strengthened, especially in
Eastern Europe, and prices remained stable.
Industrial Packaging
--------------------------------------------------------------------------------
| EUR million | Q4/ | Q3/ | Q4/ | 200 | 2008 | Chang | Chang | Chang |
| | 09 | 09 | 08 | 9 | | e % | e % | e % |
| | | | | | | Q4/09 | Q4/09 | 2009- |
| | | | | | | -Q4/0 | -Q3/0 | 2008 |
| | | | | | | 8 | 9 | |
--------------------------------------------------------------------------------
| Sales | 220 | 203 | 242 | 815 | 1 | -9.0 | 8.3 | -24.2 |
| | .6 | .7 | .5 | .5 | 076.5 | | | |
--------------------------------------------------------------------------------
| EBITDA* | 14. | 22. | 20. | 65. | 132.7 | -26.7 | -34.2 | -50.7 |
| | 8 | 5 | 2 | 4 | | | | |
--------------------------------------------------------------------------------
| Operating profit* | 2.9 | 10. | 6.2 | 17. | 73.9 | -53.2 | -71.8 | -76.2 |
| | | 3 | | 6 | | | | |
--------------------------------------------------------------------------------
| % of sales | 1.3 | 5.1 | 2.6 | 2.2 | 6.9 | -50.0 | -74.5 | -68.1 |
--------------------------------------------------------------------------------
| ROOC, %** | 2.0 | 7.2 | 3.6 | 3.0 | 11.2 | -44.4 | -72.2 | -73.2 |
--------------------------------------------------------------------------------
| Paper and board | 229 | 217 | 229 | 832 | 1 008 | 0.0 | 5.5 | -17.5 |
| deliveries, 1 000 t | | | | | | | | |
--------------------------------------------------------------------------------
| Paper and board | 221 | 216 | 218 | 807 | 1 020 | 1.4 | 2.3 | -20.9 |
| production, 1 000 t | | | | | | | | |
--------------------------------------------------------------------------------
| Corrugated packaging | 255 | 245 | 254 | 966 | 1 071 | 0.4 | 4.1 | -9.8 |
| deliveries, million | | | | | | | | |
| m2 | | | | | | | | |
--------------------------------------------------------------------------------
| Corrugated packaging | 258 | 239 | 252 | 962 | 1 066 | 2.4 | 7.9 | -9.8 |
| production, million | | | | | | | | |
| m2 | | | | | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital
Industrial packaging sales were EUR 220.6 million, down 9% on the fourth quarter
of 2008 mainly due to lower sales prices in all main businesses. Operating
profit was EUR 2.9 million, down 53% on the fourth quarter of 2008 as lower
sales prices outweighed the benefits of lower fixed and variable costs. As
already announced, Stora Enso is endeavouring to divest the loss-making
laminating paper business.
Markets
Compared with Q4/2008
Demand was generally similar but prices were clearly lower than a year ago.
Compared with Q3/2009
Demand strengthened in all industrial packaging grades and prices gradually
started to improve, led by containerboard.
Wood Products
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Change | Change | Change |
| | 9 | 9 | 8 | | | % | % | % |
| | | | | | | Q4/09- | Q4/09- | 2009-2 |
| | | | | | | Q4/08 | Q3/09 | 008 |
--------------------------------------------------------------------------------
| Sales | 344. | 306. | 348. | 1 | 1 | -1.1 | 12.4 | -17.5 |
| | 9 | 9 | 7 | 239. | 503.3 | | | |
| | | | | 6 | | | | |
--------------------------------------------------------------------------------
| EBITDA* | 23.9 | 17.1 | -8.5 | 25.6 | -19.4 | n/m | 39.8 | 232.0 |
--------------------------------------------------------------------------------
| Operating | 15.0 | 9.4 | -18. | -8.0 | -67.5 | 179.4 | 59.6 | 88.1 |
| profit/loss* | | | 9 | | | | | |
--------------------------------------------------------------------------------
| % of sales | 4.3 | 3.1 | -5.4 | -0.7 | -4.5 | 179.6 | 38.7 | 84.4 |
--------------------------------------------------------------------------------
| ROOC, %** | 10.4 | 6.4 | -11. | -1.4 | -9.8 | 193.7 | 62.5 | 85.7 |
| | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1 | 1 | 1190 | 1 | 4 | 5 893 | -8.7 | 9.1 | -16.8 |
| 000 m3 | 298 | | 422 | 902 | | | | |
--------------------------------------------------------------------------------
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital
Wood product sales were EUR 344.9 million, down 1% on the fourth quarter of 2008
mainly due to lower sales volumes. Despite lower volumes and continuing weak
demand, operating profit was EUR 15.0 million, a significant improvement of EUR
33.9 million on the fourth quarter of 2008. This rebound was achieved mostly
through lower fixed and wood costs.
Markets
Compared with Q4/2008
Demand was again weaker than a year ago in the main European and Asian markets
due to very low construction activity. However, heavy curtailments by the wood
products industry improved the supply and demand balance and clearly reduced
industry inventories. After bottoming out during the first quarter of 2009,
sales prices rose to end 2009 largely unchanged on a year earlier in Europe.
Sawlog prices, which declined through most of 2009, have started rising due to
strengthening demand and limited supply.
Compared with Q3/2009
Demand in the main markets remained weak but relatively stable, despite some
seasonal weakening towards the year end. Prices continued to improve in Europe
and Asia due to tightening supply. Inventories increased slightly during the
quarter from very low levels.
Financials
Basis of Preparation
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 2008, except for the
effects of the adoption of the standards described below:
IFRS 8 Operating Segments
The Group's reportable segments remain unchanged from those reported in previous
interim reports. The adoption of this standard has had no impact on the reported
results or financial position of the Group.
IAS 1 (revised 2007) Presentation of Financial Statements
The revised standard has introduced a number of terminology changes and revised
titles for the primary statements, however the adoption of this standard has had
no impact on the reported results or financial position of the Group.
Discontinued Operations
The divestment of the Merchants segment in 2008 has been accounted for as a
discontinued operation. The income statements have been re-presented to disclose
the results from discontinued operations separately, but the Statement of
Financial Position and Statement of Cash Flows are presented as previously
reported.
Condensed Consolidated Income Statement
--------------------------------------------------------------------------------
| EUR million | Q4/0 | Q3/0 | Q4/0 | 2009 | 2008 | Chang | Chang | Chang |
| | 9 | 9 | 8 | | | e % | e % | e % |
| | | | | | | Q4/09 | Q4/09 | 2009 |
| | | | | | | -Q4/0 | -Q3/0 | - |
| | | | | | | 8 | 9 | 2008 |
--------------------------------------------------------------------------------
| Continuing | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Sales | 2 | 2 | 2 | 8 | 11 | -7.8 | 7.5 | -18.9 |
| | 398. | 231. | 602. | 945.1 | 028.8 | | | |
| | 8 | 0 | 5 | | | | | |
--------------------------------------------------------------------------------
| Other operating | 58.9 | 30.7 | 51.4 | 172.8 | 120.2 | 14.6 | 91.9 | 43.8 |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Materials and | -1 | -1 | -1 | -5 | -6 | 11.6 | -9.0 | 17.9 |
| services | 529. | 403. | 730. | 668.1 | 905.0 | | | |
| | 4 | 7 | 3 | | | | | |
--------------------------------------------------------------------------------
| Freight and | -218 | -207 | -266 | -833. | -1 | 17.9 | -5.4 | 26.0 |
| sales | .4 | .2 | .0 | 6 | 127.1 | | | |
| commissions | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel | -349 | -298 | -402 | -1 | -1 | 13.0 | -17.4 | 19.1 |
| expenses | .9 | .1 | .2 | 349.6 | 669.1 | | | |
--------------------------------------------------------------------------------
| Other operating | -161 | -155 | -222 | -833. | -752. | 27.4 | -3.5 | -10.7 |
| expenses | .4 | .9 | .3 | 1 | 7 | | | |
--------------------------------------------------------------------------------
| Share of | 77.6 | 8.8 | -37. | 111.8 | 0.7 | 308.6 | n/m | n/m |
| results of | | | 2 | | | | | |
| equity | | | | | | | | |
| accounted | | | | | | | | |
| investments | | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -170 | -708 | -780 | -1 | -1 | 78.1 | 75.9 | 18.9 |
| and impairment | .9 | .2 | .1 | 152.9 | 422.4 | | | |
--------------------------------------------------------------------------------
| Operating | 105. | -502 | -784 | -607. | -726. | 113.4 | 121.0 | 16.4 |
| Profit/Loss | 3 | .6 | .2 | 6 | 6 | | | |
--------------------------------------------------------------------------------
| Net financial | -24. | -46. | -61. | -279. | -167. | 59.8 | 46.4 | -67.0 |
| items | 7 | 1 | 4 | 2 | 2 | | | |
--------------------------------------------------------------------------------
| Profit/Loss | 80.6 | -548 | -845 | -886. | -893. | 109.5 | 114.7 | 0.8 |
| before Tax | | .7 | .6 | 8 | 8 | | | |
--------------------------------------------------------------------------------
| Income tax | -34. | 29.0 | 191. | 8.6 | 214.8 | -118. | -219. | -96.0 |
| | 7 | | 0 | | | 2 | 7 | |
--------------------------------------------------------------------------------
| Net Profit/Loss | 45.9 | -519 | -654 | -878. | -679. | 107.0 | 108.8 | -29.3 |
| for the Period | | .7 | .6 | 2 | 0 | | | |
| from Continuing | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Profit after | 0.0 | 0.0 | 0.1 | 0.0 | 4.3 | -100. | n/a | -100. |
| tax for the | | | | | | 0 | | 0 |
| period from | | | | | | | | |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Profit/Loss | 45.9 | -519 | -654 | -878. | -674. | 107.0 | 108.8 | -30.2 |
| for the Period | | .7 | .5 | 2 | 7 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable | | | | | | | | |
| to: | | | | | | | | |
--------------------------------------------------------------------------------
| Owners of the | 46.1 | -519 | -648 | -879. | -673. | 107.1 | 108.9 | -30.6 |
| Parent | | .7 | .5 | 7 | 4 | | | |
--------------------------------------------------------------------------------
| Non-controlling | -0.2 | 0.0 | -6.0 | 1.5 | -1.3 | 96.7 | n/a | 215.4 |
| interests | | | | | | | | |
--------------------------------------------------------------------------------
| | 45.9 | -519 | -654 | -878. | -674. | 107.0 | 108.8 | -30.2 |
| | | .7 | .5 | 2 | 7 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | | | | | |
| Share | | | | | | | | |
--------------------------------------------------------------------------------
| Basic earnings | 0.05 | -0.6 | -0.8 | -1.12 | -0.85 | 106.1 | 107.6 | -31.8 |
| per share, EUR | | 6 | 2 | | | 0 | | |
--------------------------------------------------------------------------------
| Diluted | 0.05 | -0.6 | -0.8 | -1.12 | -0.85 | 106.1 | 107.6 | -31.8 |
| earnings per | | 6 | 2 | | | 0 | | |
| share, EUR | | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | | | | | | | | |
| Share from | | | | | | | | |
| Continuing | | | | | | | | |
| Operations | | | | | | | | |
--------------------------------------------------------------------------------
| Basic earnings | 0.05 | -0.6 | -0.8 | -1.12 | -0.86 | 106.1 | 107.6 | -30.2 |
| per share, EUR | | 6 | 2 | | | 0 | | |
--------------------------------------------------------------------------------
| Diluted | 0.05 | -0.6 | -0.8 | -1.12 | -0.86 | 106.1 | 107.6 | -30.2 |
| earnings per | | 6 | 2 | | | 0 | | |
| share, EUR | | | | | | | | |
--------------------------------------------------------------------------------
Consolidated Statement of Comprehensive Income
--------------------------------------------------------------------------------
| EUR million | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net loss for the period | -878.2 | -674.7 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Other Comprehensive Income | | |
--------------------------------------------------------------------------------
| Actuarial gains & losses on defined benefit pension | -20.4 | -12.7 |
| plans | | |
--------------------------------------------------------------------------------
| Asset revaluation on step acquisition | 3.9 | - |
--------------------------------------------------------------------------------
| Available for sale financial assets | 180.3 | -398.0 |
--------------------------------------------------------------------------------
| Currency and commodity hedges | 224.1 | -312.3 |
--------------------------------------------------------------------------------
| Share of other comprehensive income of equity | -8.5 | -9.4 |
| accounted investments | | |
--------------------------------------------------------------------------------
| Currency translation movements on equity net | 252.6 | -328.3 |
| investments (CTA) | | |
--------------------------------------------------------------------------------
| Currency translation movements on non-controlling | 5.9 | -5.5 |
| interests | | |
--------------------------------------------------------------------------------
| Net investment hedges | 0.7 | 1.3 |
--------------------------------------------------------------------------------
| Income tax relating to components of other | -65.0 | 88.8 |
| comprehensive income | | |
--------------------------------------------------------------------------------
| Other Comprehensive Income, net of tax | 573.6 | -976.1 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Total Comprehensive Income | -304.6 | -1 650.8 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Total Comprehensive Income Attributable to: | | |
--------------------------------------------------------------------------------
| Owners of the Parent | -312.0 | -1 644.7 |
--------------------------------------------------------------------------------
| Non-controlling interests | 7.4 | -6.1 |
--------------------------------------------------------------------------------
| | -304.6 | -1 650.8 |
--------------------------------------------------------------------------------
Condensed Consolidated Statement of Cash Flows
--------------------------------------------------------------------------------
| EUR million | 2009 | 2008 |
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | |
--------------------------------------------------------------------------------
| Operating loss | -607.6 | -714.8 |
--------------------------------------------------------------------------------
| Hedging result from OCI | 233.4 | -280.9 |
--------------------------------------------------------------------------------
| Adjustments for non-cash items | 1 262.0 | 1 453.8 |
--------------------------------------------------------------------------------
| Change in net working capital | 638.0 | 81.5 |
--------------------------------------------------------------------------------
| Cash Flow Generated by Operations | 1 525.8 | 539.6 |
--------------------------------------------------------------------------------
| Net financials items paid/received | -220.3 | 47.7 |
--------------------------------------------------------------------------------
| Income taxes paid/received, net | -3.0 | 25.6 |
--------------------------------------------------------------------------------
| Net Cash Provided by Operating Activities | 1 302.5 | 612.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | |
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries | -8.4 | -4.5 |
--------------------------------------------------------------------------------
| Acquisitions of equity accounted investments | -128.5 | -53.9 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets and shares | 98.0 | 230.3 |
--------------------------------------------------------------------------------
| Capital expenditure | -423.7 | -706.9 |
--------------------------------------------------------------------------------
| Payment of non-current receivables, net | -24.2 | -16.2 |
--------------------------------------------------------------------------------
| Net Cash Used in Investing Activities | -486.8 | -551.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing Activities | | |
--------------------------------------------------------------------------------
| Proceeds from issue of new long-term debt | 636.1 | 303.6 |
--------------------------------------------------------------------------------
| Long-term debt, payments | -411.3 | -634.2 |
--------------------------------------------------------------------------------
| Change in short-term borrowings | -359.9 | 4.0 |
--------------------------------------------------------------------------------
| Dividends and capital repayments paid | -157.7 | -354.9 |
--------------------------------------------------------------------------------
| Equity repayment and dividend to | -7.7 | -4.2 |
| non-controlling interests | | |
--------------------------------------------------------------------------------
| Net Cash Used in Financing Activities | -300.5 | -685.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Increase/Decrease in Cash and Cash | 515.2 | -624.0 |
| Equivalents | | |
--------------------------------------------------------------------------------
| Cash and bank in acquired companies | 4.4 | 0.0 |
--------------------------------------------------------------------------------
| Cash and bank in disposed companies | -0.1 | -31.3 |
--------------------------------------------------------------------------------
| Translation adjustment | -15.1 | 148.6 |
--------------------------------------------------------------------------------
| Net cash and cash equivalents at the | 372.6 | 879.3 |
| beginning of period | | |
--------------------------------------------------------------------------------
| Net Cash and Cash Equivalents at Period End | 877.0 | 372.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and Cash Equivalents at Period End | 890.4 | 415.8 |
--------------------------------------------------------------------------------
| Bank Overdrafts at Period End | -13.4 | -43.2 |
--------------------------------------------------------------------------------
| Net Cash and Cash Equivalents at Period End | 877.0 | 372.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisitions of Subsidiary Companies | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 4.4 | - |
--------------------------------------------------------------------------------
| Fixed assets | 17.6 | 3.9 |
--------------------------------------------------------------------------------
| Working capital | 20.4 | 0.2 |
--------------------------------------------------------------------------------
| Tax assets and liabilities | 16.0 | -0.4 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | -44.1 | -1.0 |
--------------------------------------------------------------------------------
| Non-controlling interests | -2.0 | 1.8 |
--------------------------------------------------------------------------------
| Fair Value of Net Assets | 12.3 | 4.5 |
--------------------------------------------------------------------------------
| Gain from step acquisition realised directly | -3.9 | - |
| in equity | | |
--------------------------------------------------------------------------------
| Total Purchase Consideration | 8.4 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Disposal of Subsidiary Companies | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 0.1 | 31.3 |
--------------------------------------------------------------------------------
| Fixed assets | 92.6 | 281.8 |
--------------------------------------------------------------------------------
| Working capital | 2.1 | 167.0 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | - | -230.4 |
--------------------------------------------------------------------------------
| Tax liabilities | - | -26.4 |
--------------------------------------------------------------------------------
| Non-controlling Interest | - | 3.4 |
--------------------------------------------------------------------------------
| Net Assets in Divested Companies | 94.8 | 226.7 |
--------------------------------------------------------------------------------
| Income Statement capital gain/loss | - | 1.5 |
--------------------------------------------------------------------------------
| Total Disposal Consideration Received in Cash | 94.8 | 228.2 |
| and Kind | | |
--------------------------------------------------------------------------------
Property, Plant and Equipment, Intangible Assets and Goodwill
--------------------------------------------------------------------------------
| EUR million | 2009 | 2008 |
--------------------------------------------------------------------------------
| Carrying value at 1 January | 5 899.4 | 7 232.4 |
--------------------------------------------------------------------------------
| Acquisition of subsidiary companies | 17.6 | 3.9 |
--------------------------------------------------------------------------------
| Capital expenditure | 394.4 | 648.2 |
--------------------------------------------------------------------------------
| Additions in biological assets | 35.5 | 58.7 |
--------------------------------------------------------------------------------
| Change in emission rights | -41.7 | 61.8 |
--------------------------------------------------------------------------------
| Disposals | -27.9 | -54.7 |
--------------------------------------------------------------------------------
| Disposals of subsidiary companies | -92.6 | -281.8 |
--------------------------------------------------------------------------------
| Depreciation and impairment, continuing | -1 152.9 | -1 422.4 |
| operations | | |
--------------------------------------------------------------------------------
| Depreciation and impairment, discontinued | - | -46.1 |
| operations | | |
--------------------------------------------------------------------------------
| Translation difference and other | 125.9 | -300.6 |
--------------------------------------------------------------------------------
| Statement of Financial Position Total | 5 157.7 | 5 899.4 |
--------------------------------------------------------------------------------
Borrowings
--------------------------------------------------------------------------------
| EUR million | 31 Dec 09 | 31 Dec 08 |
--------------------------------------------------------------------------------
| Non-current borrowings | 2 898.4 | 3 007.8 |
--------------------------------------------------------------------------------
| Current borrowings | 1 038.3 | 1 068.3 |
--------------------------------------------------------------------------------
| | 3 936.7 | 4 076.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Carrying value at 1 January | 4 076.1 | 4 441.4 |
--------------------------------------------------------------------------------
| Debt acquired with new subsidiaries | 44.1 | 1.0 |
--------------------------------------------------------------------------------
| Debt disposed with sold subsidiaries | - | -230.4 |
--------------------------------------------------------------------------------
| Payments of borrowings (net) | -255.1 | -59.7 |
--------------------------------------------------------------------------------
| Translation difference and other | 71.6 | -76.2 |
--------------------------------------------------------------------------------
| Statement of Financial Position Total | 3 936.7 | 4 076.1 |
--------------------------------------------------------------------------------
Condensed Consolidated Statement of Financial Position
--------------------------------------------------------------------------------
| EUR million | | 31 Dec 09 | 31 Dec 08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fixed Assets and Other Non-current | | | |
| Investments | | | |
--------------------------------------------------------------------------------
| Fixed assets | O | 4 979.9 | 5 698.8 |
--------------------------------------------------------------------------------
| Biological assets | O | 152.5 | 133.6 |
--------------------------------------------------------------------------------
| Emission rights | O | 25.3 | 67.0 |
--------------------------------------------------------------------------------
| Equity accounted investments | O | 1 481.3 | 1 042.5 |
--------------------------------------------------------------------------------
| Available-for-sale: Listed securities | I | 71.7 | 154.9 |
--------------------------------------------------------------------------------
| Available-for-sale: Unlisted shares | O | 778.5 | 954.3 |
--------------------------------------------------------------------------------
| Non-current loan receivables | I | 159.6 | 130.3 |
--------------------------------------------------------------------------------
| Deferred tax assets | T | 155.8 | 74.5 |
--------------------------------------------------------------------------------
| Other non-current assets | O | 30.4 | 16.2 |
--------------------------------------------------------------------------------
| | | 7 835.0 | 8 272.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current Assets | | | |
--------------------------------------------------------------------------------
| Inventories | O | 1 281.6 | 1 693.6 |
--------------------------------------------------------------------------------
| Tax receivables | T | 2.4 | 25.0 |
--------------------------------------------------------------------------------
| Operative receivables | O | 1 362.6 | 1 583.2 |
--------------------------------------------------------------------------------
| Interest-bearing receivables | I | 221.2 | 251.1 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | I | 890.4 | 415.8 |
--------------------------------------------------------------------------------
| | | 3 758.2 | 3 968.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Assets | | 11 593.2 | 12 240.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and Liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Owners of the Parent | | 5 124.3 | 5 594.0 |
--------------------------------------------------------------------------------
| Non-controlling Interests | | 58.2 | 56.5 |
--------------------------------------------------------------------------------
| Total Equity | | 5 182.5 | 5 650.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current Liabilities | | | |
--------------------------------------------------------------------------------
| Post-employment benefit provisions | O | 305.0 | 299.0 |
--------------------------------------------------------------------------------
| Other provisions | O | 180.4 | 202.3 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | T | 364.4 | 277.5 |
--------------------------------------------------------------------------------
| Non-current debt | I | 2 898.4 | 3 007.8 |
--------------------------------------------------------------------------------
| Other non-current operative liabilities | O | 43.1 | 28.5 |
--------------------------------------------------------------------------------
| | | 3 791.3 | 3 815.1 |
--------------------------------------------------------------------------------
| Current Liabilities | | | |
--------------------------------------------------------------------------------
| Current portion of long-term debt | I | 814.8 | 437.4 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | I | 223.5 | 630.9 |
--------------------------------------------------------------------------------
| Operative liabilities | O | 1 473.0 | 1 602.1 |
--------------------------------------------------------------------------------
| Tax liabilities | T | 108.1 | 104.8 |
--------------------------------------------------------------------------------
| | | 2 619.4 | 2 775.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Liabilities | | 6 410.7 | 6 590.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Equity and Liabilities | | 11 593.2 | 12 240.8 |
--------------------------------------------------------------------------------
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 | Sh | Sh | In | Tr | St | Av | Cur | Cur | CTA | Ret | Att | Non | Tot |
| mill | ar | ar | ve | ea | ep | ai | ren | ren | & | ain | rib | -co | al |
| ion | e | e | st | su | Ac | la | cy | cy | net | ed | uta | ntr | |
| | Ca | Pr | ed | ry | qu | bl | and | and | inv | Ear | ble | oll | |
| | pi | em | No | Sh | is | e | com | com | est | nin | to | ing | |
| | ta | iu | n- | ar | it | fo | mod | mod | men | gs | own | int | |
| | l | m | Re | es | io | r | ity | ity | t | | ers | ere | |
| | | & | st | | n | sa | hed | hed | hed | | of | sts | |
| | | Re | ri | | Re | le | ges | ges | ges | | the | | |
| | | se | ct | | va | fi | | of | | | par | | |
| | | rv | ed | | lu | na | | equ | | | ent | | |
| | | e | Eq | | at | nc | | ity | | | | | |
| | | fu | ui | | io | ia | | acc | | | | | |
| | | nd | ty | | n | l | | oun | | | | | |
| | | | Fu | | Su | as | | ted | | | | | |
| | | | nd | | rp | se | | inv | | | | | |
| | | | | | lu | ts | | est | | | | | |
| | | | | | s | | | men | | | | | |
| | | | | | | | | ts | | | | | |
--------------------------------------------------------------------------------
| Bala | 1 | 2 | - | -1 | - | 89 | 62. | -1. | -11 | 3 | 7 | 71. | 7 |
| nce | 34 | 27 | | 0. | | 9. | 4 | 1 | 5.6 | 140 | 593 | 9 | 665 |
| at | 2. | 6. | | 2 | | 1 | | | | .4 | .6 | | .5 |
| 31 | 2 | 4 | | | | | | | | | | | |
| Dece | | | | | | | | | | | | | |
| mber | | | | | | | | | | | | | |
| 2007 | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Prof | - | - | - | - | - | - | - | - | - | -67 | -67 | -1. | -67 |
| it | | | | | | | | | | 3.4 | 3.4 | 3 | 4.7 |
| for | | | | | | | | | | | | | |
| the | | | | | | | | | | | | | |
| peri | | | | | | | | | | | | | |
| od | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| OCI | - | - | - | - | - | -3 | -31 | -9. | -32 | -13 | -1 | -4. | -1 |
| befo | | | | | | 98 | 2.3 | 4 | 7.0 | .4 | 060 | 8 | 064 |
| re | | | | | | .0 | | | | | .1 | | .9 |
| tax | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Inco | - | - | - | - | - | 9. | 83. | - | -1. | -3. | 88. | - | 88. |
| me | | | | | | 5 | 8 | | 2 | 3 | 8 | | 8 |
| tax | | | | | | | | | | | | | |
| rela | | | | | | | | | | | | | |
| ting | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| comp | | | | | | | | | | | | | |
| onen | | | | | | | | | | | | | |
| ts | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | |
| OCI | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | - | - | - | - | - | -3 | -22 | -9. | -32 | -69 | -1 | -6. | -1 |
| l | | | | | | 88 | 8.5 | 4 | 8.2 | 0.1 | 644 | 1 | 650 |
| Comp | | | | | | .5 | | | | | .7 | | .8 |
| rehe | | | | | | | | | | | | | |
| nsiv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| Inco | | | | | | | | | | | | | |
| me | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | - | - | - | - | - | - | - | - | - | -35 | -35 | -4. | -35 |
| dend | | | | | | | | | | 4.9 | 4.9 | 2 | 9.1 |
| s | | | | | | | | | | | | | |
| rela | | | | | | | | | | | | | |
| ting | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| 2007 | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Acqu | - | - | - | - | - | - | - | - | - | - | - | -3. | -3. |
| isit | | | | | | | | | | | | 3 | 3 |
| ion | | | | | | | | | | | | | |
| & | | | | | | | | | | | | | |
| disp | | | | | | | | | | | | | |
| osal | | | | | | | | | | | | | |
| s | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Buy- | - | - | - | - | - | - | - | - | - | - | - | -1. | -1. |
| out | | | | | | | | | | | | 8 | 8 |
| of | | | | | | | | | | | | | |
| non- | | | | | | | | | | | | | |
| cont | | | | | | | | | | | | | |
| roll | | | | | | | | | | | | | |
| ing | | | | | | | | | | | | | |
| inte | | | | | | | | | | | | | |
| rest | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Bala | 1 | 2 | - | -1 | - | 51 | -16 | -10 | -44 | 2 | 5 | 56. | 5 |
| nce | 34 | 27 | | 0. | | 0. | 6.1 | .5 | 3.8 | 095 | 594 | 5 | 650 |
| at | 2. | 6. | | 2 | | 6 | | | | .4 | .0 | | .5 |
| 31 | 2 | 4 | | | | | | | | | | | |
| Dece | | | | | | | | | | | | | |
| mber | | | | | | | | | | | | | |
| 2008 | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Loss | - | - | - | - | - | - | - | - | - | -87 | -87 | 1.5 | -87 |
| for | | | | | | | | | | 9.7 | 9.7 | | 8.2 |
| the | | | | | | | | | | | | | |
| peri | | | | | | | | | | | | | |
| od | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| OCI | - | - | - | - | 3. | 18 | 224 | -8. | 253 | -20 | 632 | 5.9 | 638 |
| befo | | | | | 9 | 0. | .1 | 5 | .3 | .4 | .7 | | .6 |
| re | | | | | | 3 | | | | | | | |
| tax | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Inco | - | - | - | - | - | -6 | -58 | - | -4. | 4.6 | -65 | - | -65 |
| me | | | | | | .7 | .8 | | 1 | | .0 | | .0 |
| tax | | | | | | | | | | | | | |
| rela | | | | | | | | | | | | | |
| ting | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| comp | | | | | | | | | | | | | |
| onen | | | | | | | | | | | | | |
| ts | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | |
| OCI | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | - | - | - | - | 3. | 17 | 165 | -8. | 249 | -89 | -31 | 7.4 | -30 |
| l | | | | | 9 | 3. | .3 | 5 | .2 | 5.5 | 2.0 | | 4.6 |
| Comp | | | | | | 6 | | | | | | | |
| rehe | | | | | | | | | | | | | |
| nsiv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| Inco | | | | | | | | | | | | | |
| me | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Divi | | | | | | | | | | | | -2. | -2. |
| dend | | | | | | | | | | | | 2 | 2 |
| s | | | | | | | | | | | | | |
| rela | | | | | | | | | | | | | |
| ting | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| 2008 | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Acqu | - | | | - | - | - | - | - | - | - | - | -3. | -3. |
| isit | | | | | | | | | | | | 4 | 4 |
| ion | | | | | | | | | | | | | |
| & | | | | | | | | | | | | | |
| disp | | | | | | | | | | | | | |
| osal | | | | | | | | | | | | | |
| s | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Buy- | | | | | | | | | | | | -0. | -0. |
| out | | | | | | | | | | | | 1 | 1 |
| of | | | | | | | | | | | | | |
| non- | | | | | | | | | | | | | |
| cont | | | | | | | | | | | | | |
| roll | | | | | | | | | | | | | |
| ing | | | | | | | | | | | | | |
| inte | | | | | | | | | | | | | |
| rest | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | -1 | 1 | | | | | | | | | | - |
| sfer | | 92 | 92 | | | | | | | | | | |
| to | | 7. | 7. | | | | | | | | | | |
| dist | | 2 | 2 | | | | | | | | | | |
| ribu | | | | | | | | | | | | | |
| tabl | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| rese | | | | | | | | | | | | | |
| rves | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Retu | - | -1 | - | - | - | - | - | - | - | - | -15 | - | -15 |
| rn | | 57 | | | | | | | | | 7.7 | | 7.7 |
| of | | .7 | | | | | | | | | | | |
| capi | | | | | | | | | | | | | |
| tal | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Bala | 1 | 19 | 1 | -1 | 3, | 68 | -0, | -19 | -19 | 1 | 5 | 58, | 5 |
| nce | 34 | 1, | 92 | 0, | 9 | 4, | 8 | ,0 | 4,6 | 199 | 124 | 2 | 182 |
| at | 2, | 5 | 7, | 2 | | 2 | | | | ,9 | ,3 | | ,5 |
| 31 | 2 | | 2 | | | | | | | | | | |
| Dece | | | | | | | | | | | | | |
| mber | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | |
--------------------------------------------------------------------------------
CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income
Commitments and Contingencies
--------------------------------------------------------------------------------
| EUR million | 31 Dec 09 | 31 Dec 08 |
--------------------------------------------------------------------------------
| On Own Behalf | | |
--------------------------------------------------------------------------------
| Pledges given | - | 0.8 |
--------------------------------------------------------------------------------
| Mortgages | 16.2 | 62.0 |
--------------------------------------------------------------------------------
| On Behalf of Equity Accounted | | |
| Investments | | |
--------------------------------------------------------------------------------
| Guarantees | 180.2 | 180.5 |
--------------------------------------------------------------------------------
| On Behalf of Others | | |
--------------------------------------------------------------------------------
| Guarantees | 121.7 | 156.3 |
--------------------------------------------------------------------------------
| Other Commitments, Own | | |
--------------------------------------------------------------------------------
| Operating leases, in next 12 months | 27.2 | 28.9 |
--------------------------------------------------------------------------------
| Operating leases, after next 12 months | 79.3 | 95.0 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.3 | 0.2 |
--------------------------------------------------------------------------------
| Other commitments | 36.4 | 40.4 |
--------------------------------------------------------------------------------
| Total | 461.3 | 564.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges given | - | 0.8 |
--------------------------------------------------------------------------------
| Mortgages | 16.2 | 62.0 |
--------------------------------------------------------------------------------
| Guarantees | 301.9 | 336.8 |
--------------------------------------------------------------------------------
| Operating leases | 106.5 | 123.9 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.3 | 0.2 |
--------------------------------------------------------------------------------
| Other commitments | 36.4 | 40.4 |
--------------------------------------------------------------------------------
| Total | 461.3 | 564.1 |
--------------------------------------------------------------------------------
Purchase Agreement Commitments
--------------------------------------------------------------------------------
| EUR million | Scheduled Contract Payments |
--------------------------------------------------------------------------------
| Type of Supply | Contract | 2010 | 2011-201 | 2013-201 | 2015+ |
| | Total | | 2 | 4 | |
--------------------------------------------------------------------------------
| | Fibre | 1 483.6 | 205.6 | 357.4 | 346.6 | 574.0 |
--------------------------------------------------------------------------------
| | Energy | 1 779.1 | 377.8 | 472.7 | 294.3 | 634.3 |
--------------------------------------------------------------------------------
| | Logistics | 469.6 | 65.0 | 110.1 | 93.7 | 200.8 |
--------------------------------------------------------------------------------
| | Other production | 697.6 | 75.6 | 121.0 | 50.3 | 450.7 |
| | costs | | | | | |
--------------------------------------------------------------------------------
| | | 4 429.9 | 724.0 | 1 061.2 | 784.9 | 1 859. |
| | | | | | | 8 |
--------------------------------------------------------------------------------
| Capital Expenditure | 113.5 | 112.0 | 1.5 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total Contractual | 4 543.4 | 836.0 | 1 062.7 | 784.9 | 1 |
| Commitments at 31 | | | | | 859.8 |
| December 2009 | | | | | |
--------------------------------------------------------------------------------
Fair Values of Derivative Financial Instruments
--------------------------------------------------------------------------------
| EUR million | | 31 Dec 09 | | | 31 Dec 08 |
--------------------------------------------------------------------------------
| | Positive | Negative | Net Fair | | Net |
| | Fair | Fair | Values | | Fair |
| | Values | Values | | | Values |
--------------------------------------------------------------------------------
| Interest rate swaps | 194.7 | -38.1 | 156.6 | | 227.2 |
--------------------------------------------------------------------------------
| Interest rate options | - | -26.7 | -26.7 | | -38.0 |
--------------------------------------------------------------------------------
| Forward contracts | 49.2 | -28.7 | 20.5 | | -73.9 |
--------------------------------------------------------------------------------
| Currency options | 26.7 | -12.8 | 13.9 | | -14.6 |
--------------------------------------------------------------------------------
| Commodity contracts | 21.0 | -42.8 | -21.8 | | -90.7 |
--------------------------------------------------------------------------------
| Equity swaps ("TRS") & | 5.2 | -19.3 | -14.1 | | -57.4 |
| equity options | | | | | |
--------------------------------------------------------------------------------
| Total | 296.8 | -168.4 | 128.4 | | -47.4 |
--------------------------------------------------------------------------------
Nominal Values of Derivative Financial Instruments
--------------------------------------------------------------------------------
| EUR million | 31 Dec 09 | 31 Dec 08 |
--------------------------------------------------------------------------------
| Interest Rate Derivatives | | |
--------------------------------------------------------------------------------
| Interest rate swaps | | |
--------------------------------------------------------------------------------
| Maturity under 1 year | 666.8 | 592.8 |
--------------------------------------------------------------------------------
| Maturity 2-5 years | 2 384.0 | 1 683.4 |
--------------------------------------------------------------------------------
| Maturity 6-10 years | 861.8 | 2 341.6 |
--------------------------------------------------------------------------------
| | 3 912.6 | 4 617.8 |
--------------------------------------------------------------------------------
| Interest rate options | 387.4 | 394.3 |
--------------------------------------------------------------------------------
| Total | 4 300.0 | 5 012.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign Exchange Derivatives | | |
--------------------------------------------------------------------------------
| Forward contracts | 2 935.7 | 3 049.4 |
--------------------------------------------------------------------------------
| Currency options | 1 590.7 | 1 438.9 |
--------------------------------------------------------------------------------
| Total | 4 526.4 | 4 488.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity Derivatives | | |
--------------------------------------------------------------------------------
| Commodity contracts | 396.7 | 604.6 |
--------------------------------------------------------------------------------
| Total | 396.7 | 604.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Return (Equity) Swaps | | |
--------------------------------------------------------------------------------
| Equity swaps ("TRS") | 104.7 | 158.2 |
--------------------------------------------------------------------------------
| Equity options | - | 22.0 |
--------------------------------------------------------------------------------
| Total | 104.7 | 180.2 |
--------------------------------------------------------------------------------
Sales by Segment
--------------------------------------------------------------------------------
| EUR | 200 | Q4/ | Q3/ | Q2/ | Q1/0 | 2008 | Q4/0 | Q3/0 | Q2/0 | Q1/0 |
| million | 9 | 09 | 09 | 09 | 9 | | 8 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Newsprint | 1 | 359 | 330 | 327 | 308. | 1 | 414. | 405. | 389. | 386. |
| and Book | 325 | .6 | .0 | .5 | 7 | 594.7 | 0 | 2 | 0 | 5 |
| Paper | .8 | | | | | | | | | |
--------------------------------------------------------------------------------
| Magazine | 1 | 430 | 469 | 396 | 380. | 2 | 544. | 544. | 540. | 547. |
| Paper | 676 | .2 | .0 | .0 | 8 | 177.0 | 3 | 9 | 5 | 3 |
| | .0 | | | | | | | | | |
--------------------------------------------------------------------------------
| Fine | 1 | 492 | 449 | 450 | 431. | 2 | 484. | 543. | 537. | 545. |
| Paper | 823 | .0 | .6 | .4 | 9 | 111.7 | 8 | 9 | 8 | 2 |
| | .9 | | | | | | | | | |
--------------------------------------------------------------------------------
| Consumer | 1 | 505 | 470 | 460 | 459. | 2 | 506. | 563. | 587. | 574. |
| Board | 895 | .0 | .7 | .3 | 9 | 231.9 | 3 | 9 | 3 | 4 |
| | .9 | | | | | | | | | |
--------------------------------------------------------------------------------
| Industria | 815 | 220 | 203 | 194 | 197. | 1 | 242. | 273. | 285. | 275. |
| l | .5 | .6 | .7 | .0 | 2 | 076.5 | 5 | 1 | 4 | 5 |
| Packaging | | | | | | | | | | |
--------------------------------------------------------------------------------
| Wood | 1 | 344 | 306 | 315 | 272. | 1 | 348. | 366. | 409. | 378. |
| Products | 239 | .9 | .9 | .8 | 0 | 503.3 | 7 | 2 | 8 | 6 |
| | .6 | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | 2 | 619 | 450 | 507 | 597. | 3 | 794. | 857. | 947. | 987. |
| | 175 | .4 | .1 | .8 | 9 | 586.9 | 6 | 0 | 7 | 6 |
| | .2 | | | | | | | | | |
--------------------------------------------------------------------------------
| Inter-seg | -2 | -57 | -44 | -46 | -517 | -3 | -732 | -831 | -825 | -863 |
| ment | 006 | 2.9 | 9.0 | 7.0 | .9 | 253.2 | .7 | .5 | .7 | .3 |
| sales | .8 | | | | | | | | | |
--------------------------------------------------------------------------------
| Continuin | 8 | 2 | 2 | 2 | 2 | 11 | 2 | 2 | 2 | 2 |
| g | 945 | 398 | 231 | 184 | 130. | 028.8 | 602. | 722. | 871. | 831. |
| Operation | .1 | .8 | .0 | .8 | 5 | | 5 | 7 | 8 | 8 |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Discontin | - | - | - | - | - | 708.7 | -1.8 | 0.4 | 180. | 529. |
| ued | | | | | | | | | 5 | 6 |
| operation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Inter-seg | - | - | - | - | - | -179. | 0.9 | 0.0 | -45. | -134 |
| ment | | | | | | 3 | | | 8 | .4 |
| sales | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 8 | 2 | 2 | 2 | 2 | 11 | 2 | 2 | 3 | 3 |
| | 945 | 398 | 231 | 184 | 130. | 558.2 | 601. | 723. | 006. | 227. |
| | .1 | .8 | .0 | .8 | 5 | | 6 | 1 | 5 | 0 |
--------------------------------------------------------------------------------
Operating Profit/Loss by Segment excluding NRI and Fair Valuations
--------------------------------------------------------------------------------
| EUR | 200 | Q4/ | Q3/ | Q2/0 | Q1/0 | 2008 | Q4/0 | Q3/0 | Q2/0 | Q1/0 |
| million | 9 | 09 | 09 | 9 | 9 | | 8 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Newsprint | 128 | 41. | 34. | 31.1 | 21.5 | 140. | 53.0 | 33.5 | 27.9 | 26.4 |
| and Book | .7 | 3 | 8 | | | 8 | | | | |
| Paper | | | | | | | | | | |
--------------------------------------------------------------------------------
| Magazine | 40. | 4.1 | 30. | 5.7 | -0.1 | 88.8 | 19.7 | 27.4 | 14.5 | 27.2 |
| Paper | 3 | | 6 | | | | | | | |
--------------------------------------------------------------------------------
| Fine | 32. | 22. | 20. | -4.1 | -5.7 | 80.4 | -9.7 | 33.1 | 19.7 | 37.3 |
| Paper | 7 | 1 | 4 | | | | | | | |
--------------------------------------------------------------------------------
| Consumer | 164 | 42. | 64. | 41.6 | 15.5 | 107. | 4.3 | 37.5 | 23.0 | 42.5 |
| Board | .9 | 9 | 9 | | | 3 | | | | |
--------------------------------------------------------------------------------
| Industria | 17. | 2.9 | 10. | 0.9 | 3.5 | 73.9 | 6.2 | 20.0 | 20.1 | 27.6 |
| l | 6 | | 3 | | | | | | | |
| Packaging | | | | | | | | | | |
--------------------------------------------------------------------------------
| Wood | -8. | 15. | 9.4 | -8.7 | -23. | -67. | -18. | -14. | -10. | -23. |
| Products | 0 | 0 | | | 7 | 5 | 9 | 3 | 9 | 4 |
--------------------------------------------------------------------------------
| Other | -11 | -26 | -44 | -24. | -21. | -77. | -48. | -7.8 | -8.2 | -13. |
| | 7.1 | .6 | .9 | 3 | 3 | 4 | 2 | | | 2 |
--------------------------------------------------------------------------------
| Operating | 259 | 101 | 125 | 42.2 | -10. | 346. | 6.4 | 129. | 86.1 | 124. |
| Profit/Lo | .1 | .7 | .5 | | 3 | 3 | | 4 | | 4 |
| ss excl. | | | | | | | | | | |
| NRI by | | | | | | | | | | |
| Segment | | | | | | | | | | |
--------------------------------------------------------------------------------
| Share of | 61. | 35. | 6.0 | 6.3 | 13.3 | 42.1 | 22.0 | -3.9 | 8.3 | 15.7 |
| results | 4 | 8 | | | | | | | | |
| of equity | | | | | | | | | | |
| accounted | | | | | | | | | | |
| investmen | | | | | | | | | | |
| ts excl. | | | | | | | | | | |
| fair | | | | | | | | | | |
| valuation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 320 | 137 | 131 | 48.5 | 3.0 | 388. | 28.4 | 125. | 94.4 | 140. |
| Profit | .5 | .5 | .5 | | | 4 | | 5 | | 1 |
| excl. NRI | | | | | | | | | | |
| and Fair | | | | | | | | | | |
| Valuation | | | | | | | | | | |
| s* | | | | | | | | | | |
--------------------------------------------------------------------------------
| Fair | 4.4 | 9.9 | 21. | 11.4 | -37. | -69. | -47. | 15.2 | -21. | -15. |
| valuation | | | 0 | | 9 | 6 | 9 | | 8 | 1 |
| s* | | | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 324 | 147 | 152 | 59.9 | -34. | 318. | -19. | 140. | 72.6 | 125. |
| Profit/Lo | .9 | .4 | .5 | | 9 | 8 | 5 | 7 | | 0 |
| ss excl. | | | | | | | | | | |
| NRI | | | | | | | | | | |
--------------------------------------------------------------------------------
| NRI | -93 | -42 | -65 | -269 | 34.0 | -1 | -764 | -279 | -1.3 | - |
| | 2.5 | .1 | 5.1 | .3 | | 045. | .7 | .4 | | |
| | | | | | | 4 | | | | |
--------------------------------------------------------------------------------
| Operating | -60 | 105 | -50 | -209 | -0.9 | -726 | -784 | -138 | 71.3 | 125. |
| Loss/Prof | 7.6 | .3 | 2.6 | .4 | | .6 | .2 | .7 | | 0 |
| it (IFRS) | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | -27 | -24 | -46 | -161 | -47. | -167 | -61. | -23. | -40. | -41. |
| financial | 9.2 | .7 | .1 | .2 | 2 | .2 | 4 | 0 | 9 | 9 |
| items | | | | | | | | | | |
--------------------------------------------------------------------------------
| Loss/Prof | -88 | 80. | -54 | -370 | -48. | -893 | -845 | -161 | 30.4 | 83.1 |
| it before | 6.8 | 6 | 8.7 | .6 | 1 | .8 | .6 | .7 | | |
| Tax and | | | | | | | | | | |
| Non-contr | | | | | | | | | | |
| olling | | | | | | | | | | |
| Interests | | | | | | | | | | |
--------------------------------------------------------------------------------
| Income | 8.6 | -34 | 29. | 2.3 | 12.0 | 214. | 191. | 42.6 | -1.8 | -17. |
| tax | | .7 | 0 | | | 8 | 0 | | | 0 |
| expense | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | -87 | 45. | -51 | -368 | -36. | -679 | -654 | -119 | 28.6 | 66.1 |
| Loss/Prof | 8.2 | 9 | 9.7 | .3 | 1 | .0 | .6 | .1 | | |
| it from | | | | | | | | | | |
| Continuin | | | | | | | | | | |
| g | | | | | | | | | | |
| Operation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontin | | | | | | | | | | |
| ued | | | | | | | | | | |
| Operation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | - | - | - | - | - | 4.3 | 0.1 | 0.9 | -1.8 | 5.1 |
| profit/lo | | | | | | | | | | |
| ss after | | | | | | | | | | |
| tax for | | | | | | | | | | |
| the | | | | | | | | | | |
| period | | | | | | | | | | |
| from | | | | | | | | | | |
| discontin | | | | | | | | | | |
| ued | | | | | | | | | | |
| operation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | -87 | 45. | -51 | -368 | -36. | -674 | -654 | -118 | 26.8 | 71.2 |
| Loss/Prof | 8.2 | 9 | 9.7 | .3 | 1 | .7 | .5 | .2 | | |
| it | | | | | | | | | | |
--------------------------------------------------------------------------------
* Fair valuations include synthetic options net of realised and open hedges, CO2
emission rights, and valuations of biological assets related to forest assets in
equity accounted investments.
NRI by Segment
--------------------------------------------------------------------------------
| EUR | 200 | Q4/ | Q3/ | Q2/0 | Q1/0 | 2008 | Q4/0 | Q3/0 | Q2/0 | Q1/0 |
| million | 9 | 09 | 09 | 9 | 9 | | 8 | 8 | 8 | 8 |
--------------------------------------------------------------------------------
| Newsprint | -52 | -1. | -80 | - | 29.0 | -15. | -5.0 | -7.8 | -2.4 | - |
| and Book | .2 | 1 | .1 | | | 2 | | | | |
| Paper | | | | | | | | | | |
--------------------------------------------------------------------------------
| Magazine | -16 | -11 | -15 | - | - | -60. | -19. | -38. | -2.6 | - |
| Paper | 3.5 | .4 | 2.1 | | | 4 | 1 | 7 | | |
--------------------------------------------------------------------------------
| Fine | -31 | -0. | -31 | - | - | -394 | -399 | -1.5 | 7.0 | - |
| Paper | 4.2 | 6 | 3.6 | | | .2 | .7 | | | |
--------------------------------------------------------------------------------
| Consumer | -34 | 1.6 | -35 | - | - | -301 | -118 | -178 | -4.3 | - |
| Board | .2 | | .8 | | | .4 | .9 | .2 | | |
--------------------------------------------------------------------------------
| Industria | -28 | -0. | -28 | - | - | -64. | -45. | -18. | -1.0 | - |
| l | .7 | 5 | .2 | | | 6 | 4 | 2 | | |
| Packaging | | | | | | | | | | |
--------------------------------------------------------------------------------
| Wood | -7. | 1.0 | -8. | - | - | -88. | -80. | -8.0 | - | - |
| Products | 7 | | 7 | | | 0 | 0 | | | |
--------------------------------------------------------------------------------
| Other | -33 | -31 | -36 | -269 | 5.0 | -121 | -96. | -27. | 2.0 | - |
| | 2.0 | .1 | .6 | .3 | | .6 | 6 | 0 | | |
--------------------------------------------------------------------------------
| NRI on | -93 | -42 | -65 | -269 | 34.0 | -1 | -764 | -279 | -1.3 | - |
| Operating | 2.5 | .1 | 5.1 | .3 | | 045. | .7 | .4 | | |
| Profit | | | | | | 4 | | | | |
--------------------------------------------------------------------------------
| NRI on | -14 | - | - | -148 | - | - | - | - | - | - |
| financial | 8.5 | | | .5 | | | | | | |
| items | | | | | | | | | | |
--------------------------------------------------------------------------------
| NRI on | 49. | 12. | 42. | 4.6 | -9.9 | 223. | 177. | 43.9 | 2.4 | - |
| tax | 6 | 0 | 9 | | | 6 | 3 | | | |
--------------------------------------------------------------------------------
| NRI on | -1 | -30 | -61 | -413 | 24.1 | -821 | -587 | -235 | 1.1 | - |
| Net | 031 | .1 | 2.2 | .2 | | .8 | .4 | .5 | | |
| Profit | .4 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontin | | | | | | | | | | |
| ued | | | | | | | | | | |
| Operation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| NRI in | - | - | - | - | - | -4.5 | - | - | -4.5 | - |
| Discontin | | | | | | | | | | |
| ued | | | | | | | | | | |
| operation | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
Operating Profit by Segment
--------------------------------------------------------------------------------
| EUR | 200 | Q4/ | Q3/ | Q2/0 | Q1/0 | 2008 | Q4/0 | Q3/0 | Q2/0 | Q1/0 |
| million | 9 | 09 | 09 | 9 | 9 | | 8 | 8 | 8 | 8 |
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| Newsprint | 76. | 40. | -45 | 31.1 | 50.5 | 125. | 48.0 | 25.7 | 25.5 | 26.4 |
| and Book | 5 | 2 | .3 | | | 6 | | | | |
| Paper | | | | | | | | | | |
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| Magazine | -12 | -7. | -12 | 5.7 | -0.1 | 28.4 | 0.6 | -11. | 11.9 | 27.2 |
| Paper | 3.2 | 3 | 1.5 | | | | | 3 | | |
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| Fine | -28 | 21. | -29 | -4.1 | -5.7 | -313 | -409 | 31.6 | 26.7 | 37.3 |
| Paper | 1.5 | 5 | 3.2 | | | .8 | .4 | | | |
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| Consumer | 130 | 44. | 29. | 41.6 | 15.5 | -194 | -114 | -140 | 18.7 | 42.5 |
| Board | .7 | 5 | 1 | | | .1 | .6 | .7 | | |
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| Industria | -11 | 2.4 | -17 | 0.9 | 3.5 | 9.3 | -39. | 1.8 | 19.1 | 27.6 |
| l | .1 | | .9 | | | | 2 | | | |
| Packaging | | | | | | | | | | |
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| Wood | -15 | 16. | 0.7 | -8.7 | -23. | -155 | -98. | -22. | -10. | -23. |
| Products | .7 | 0 | | | 7 | .5 | 9 | 3 | 9 | 4 |
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| Other | -49 | -89 | -63 | -281 | -60. | -227 | -133 | -25. | -32. | -36. |
| | 5.1 | .6 | .3 | .9 | 3 | .2 | .5 | 1 | 1 | 5 |
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| Share of | 111 | 77. | 8.8 | 6.0 | 19.4 | 0.7 | -37. | 1.6 | 12.4 | 23.9 |
| results | .8 | 6 | | | | | 2 | | | |
| of equity | | | | | | | | | | |
| accounted | | | | | | | | | | |
| investmen | | | | | | | | | | |
| ts | | | | | | | | | | |
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| Operating | -60 | 105 | -50 | -209 | -0.9 | -726 | -784 | -138 | 71.3 | 125. |
| Loss/Prof | 7.6 | .3 | 2.6 | .4 | | .6 | .2 | .7 | | 0 |
| it (IFRS) | | | | | | | | | | |
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| Net | -27 | -24 | -46 | -161 | -47. | -167 | -61. | -23. | -40. | -41. |
| financial | 9.2 | .7 | .1 | .2 | 2 | .2 | 4 | 0 | 9 | 9 |
| items | | | | | | | | | | |
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| Loss/Prof | -88 | 80. | -54 | -370 | -48. | -893 | -845 | -161 | 30.4 | 83.1 |
| it before | 6.8 | 6 | 8.7 | .6 | 1 | .8 | .6 | .7 | | |
| Tax and | | | | | | | | | | |
| Non-contr | | | | | | | | | | |
| olling | | | | | | | | | | |
| Interests | | | | | | | | | | |
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| Income | 8.6 | -34 | 29. | 2.3 | 12.0 | 214. | 191. | 42.6 | -1.8 | -17. |
| tax | | .7 | 0 | | | 8 | 0 | | | 0 |
| expense | | | | | | | | | | |
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| Net | -87 | 45. | -51 | -368 | -36. | -679 | -654 | -119 | 28.6 | 66.1 |
| Loss/Prof | 8.2 | 9 | 9.7 | .3 | 1 | .0 | .6 | .1 | | |
| it from | | | | | | | | | | |
| Continuin | | | | | | | | | | |
| g | | | | | | | | | | |
| Operation | | | | | | | | | | |
| s | | | | | | | | | | |
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--------------------------------------------------------------------------------
| Discontin | | | | | | | | | | |
| ued | | | | | | | | | | |
| Operation | | | | | | | | | | |
| s | | | | | | | | | | |
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| Net | - | - | - | - | - | 4.3 | 0.1 | 0.9 | -1.8 | 5.1 |
| loss/prof | | | | | | | | | | |
| it after | | | | | | | | | | |
| tax for | | | | | | | | | | |
| the | | | | | | | | | | |
| period | | | | | | | | | | |
| from | | | | | | | | | | |
| discontin | | | | | | | | | | |
| ued | | | | | | | | | | |
| operation | | | | | | | | | | |
| s | | | | | | | | | | |
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| Net | -87 | 45. | -51 | -368 | -36. | -674 | -654 | -118 | 26.8 | 71.2 |
| Loss/Prof | 8.2 | 9 | 9.7 | .3 | 1 | .7 | .5 | .2 | | |
| it | | | | | | | | | | |
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Key Exchange Rates for the Euro
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| One Euro is | Closing Rate | Average Rate |
--------------------------------------------------------------------------------
| | 31 Dec 09 | 31 Dec 08 | 31 Dec 09 | 31 Dec 08 |
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| SEK | 10.2520 | 10.8700 | 10.6180 | 9.6280 |
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| USD | 1.4406 | 1.3917 | 1.3941 | 1.4710 |
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| GBP | 0.8881 | 0.9525 | 0.8909 | 0.7972 |
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Transaction Risk and Hedges in Main Currencies as at 31 December 2009
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| EUR million | EUR | USD | GBP | SEK | Other | Total |
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| Sales during 2009 | 5 | 740 | 600 | 1 070 | 950 | 8 950 |
| | 590 | | | | | |
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| Costs during 2009 | -5 | -410 | -100 | -1 | -1 | -8 |
| | 040 | | | 860 | 110 | 520 |
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| Net Operating Cash Flow | 550 | 330 | 500 | -790 | -160 | 430 |
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| Estimated annual net | | 750 | 500 | -1 | | |
| operating cash flow exposure | | | | 000 | | |
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| Transaction hedges as at 31 | | -390 | -240 | 620 | | |
| December 2009 | | | | | | |
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| Hedging percentage as at 31 | | 52% | 48% | 62% | | |
| December 2009 for the next 12 | | | | | | |
| months | | | | | | |
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Changes in Exchange Rates on Operating Profit
--------------------------------------------------------------------------------
| Operating Profit: Currency effect +/- 10% | EUR million |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| USD | 75 |
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| SEK | -100 |
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| GBP | 50 |
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The sensitivity is based on expected 2010 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.
Stora Enso Shares
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| Trading | Helsinki | Stockholm |
| volume | | |
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| | A share | R share | A share | R share |
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| October | 168 411 | 94 689 129 | 260 674 | 25 588 406 |
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| November | 140 336 | 64 149 293 | 273 816 | 18 987 119 |
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| December | 422 913 | 73 802 079 | 174 507 | 21 872 535 |
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| Total | 731 660 | 232 640 501 | 708 997 | 66 448 060 |
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--------------------------------------------------------------------------------
| Closing Price | Helsinki, EUR | Stockholm, SEK |
--------------------------------------------------------------------------------
| | A share | R share | A share | R share |
--------------------------------------------------------------------------------
| October | 6.84 | 5.16 | 71.00 | 55.75 |
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| November | 6.41 | 5.09 | 67.25 | 53.25 |
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| December | 5.85 | 4.88 | 61.00 | 50.00 |
--------------------------------------------------------------------------------
Calculation of Key Figures
Return on capital employed,
ROCE (%) 100 x Operating profit____
Capital employed 1) 2)
Return on operating capital, 100 x Operating profit____
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
1) Capital employed = Operating capital - Net tax liabilities
2) Average for the financial period
For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Markus Rauramo, CFO, tel. +358 2046 21121
Lauri Peltola, Head of Group Communications, tel. +358 2046 21380
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Stora Enso's first quarter results 2010 will be published on 22 April 2010.
Annual General Meeting 31 March 2010
PRESS CONFERENCE IN HELSINKI
Time: 11.30 local time today
Location: Stora Enso Oyj
Address: Kanavaranta 1
Hosts: 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, 9.00 US
Eastern time).
If you wish to participate, please dial:
+44 (0)20 3003 2666 Continental Europe and the UK
0800 914
672 Finland
020 089 6377 Sweden
1 212 999 6659 USA
Access code: 8609112#
The live webcast may be accessed at www.storaenso.com/investors
Stora Enso is the world leader in forest industry sustainability. We offer our
customers solutions based on renewable raw materials. Our products provide a
climate-friendly alternative to many non-renewable materials, and have a smaller
carbon footprint. Stora Enso is listed in the Dow Jones Sustainability Index and
the FTSE4Good Index. Stora Enso employs 27 000 people worldwide, and our sales
in 2009 amounted to EUR 8.9 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
Jari Suvanto Ulla Paajanen-Sainio
