Stora Enso Interim Review January ? March 2005

STORA ENSO OYJ  Stock Exchange Release 27 April 2005 at 13.00

Stora Enso Interim Review January – March 2005
Profits rose; further improvement measures initiated mainly in Europe


First Quarter Results (compared with previous quarter)

Stora Enso's earnings per share were EUR 0.07 (EUR 0.03 excluding
nonrecurring items). Operating profit was EUR 112.7 million 
(EUR 41.4 million excluding non-recurring items), which is 3.6% of sales.
Profit before taxes and minority interests amounted to EUR 83.6 
(EUR 23.2 excluding non-recurring items) million. There were no non-
recurring items in the first quarter.

Sales at EUR 3 144.9 million were 3.0% lower than the previous
quarter's EUR 3 241.9 million. Cash flow from ongoing operations was
EUR 159.4 (EUR 406.0) million and cash flow after investing
activities EUR -198.1 (EUR 86.7) million. Cash earnings per share
were EUR 0.41 (EUR 0.38 excluding non-recurring items). Net
financial items were EUR -43.1 (EUR -32.5) million. Market-related
production curtailments totalled 12 000 (80 000) tonnes.


EUR million                         2003      2004     Q1/04     Q4/04     Q1/05
Sales                           12 172.3  12 395.8   3 017.9   3 241.9   3 144.9
EBITDA 1)2)                      1 707.7   1 510.9     392.7     331.2     388.8
Operating profit2)                 522.9     338.9     102.1      41.4     112.7
Non-recurring items                -54.4     369.7     115.7     179.9         -
Operating margin2), %                4.3       2.7       3.4       1.3       3.6
Operating profit                   468.5     708.6     217.8     221.3     112.7
Profit before tax and
minority interests2)               316.3     271.8      79.5      23.2      83.6
Profit before tax and
minority interests                 207.8     641.5     195.2     203.1      83.6
Net profit for the period          136.0     740.8     405.3     149.0      58.6
   
EPS2), Basic, EUR                   0.24      0.26      0.06      0.03      0.07
EPS, Basic, EUR                     0.16      0.89      0.49      0.18      0.07
CEPS2)3), EUR                       1.63      1.67      0.41      0.38      0.41
ROCE2), %                            4.6       3.0       3.7       1.5       4.1

1) EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation
2) Excluding net non-recurring items. Exceptional transactions
   that are not related to normal business operations are accounted for
   as non-recurring items. The most common non-recurring items are capital
   gains, additional write-downs, restructuring provisions and
   penalties. Non-recurring items are normally specified individually
   if they exceed one cent per share.
3) CEPS = (Net profit for the period + depreciation and
   amortisation)/average number of shares


Outlook

Commenting on the outlook, Stora Enso's CEO Jukka Härmälä said, "In
Europe demand for advertising-driven paper grades is expected to be
good. Publication paper prices were increased in the beginning of the
year and are expected to remain at that level. Coated and uncoated
fine paper demand is improving, but uncoated fine paper sheet prices
are under pressure due to overcapacity. Price increases have been
announced for some coated fine paper segments. Demand for packaging
boards is stable and some price increases are being implemented in
consumer boards, but corrugated board prices are under pressure.
Demand for wood products is improving slowly and prices are expected
to be stable."

In North America demand for advertising-driven papers remains good.
Prices for magazine paper and coated fine paper reels are expected
to increase again during the second quarter. The North American
Profit Enhancement Programme is proceeding as planned.

In Asia fine paper demand remains healthy and prices are increasing.

In April there have been unscheduled shutdowns of mills in Finland
related to ongoing labour negotiations, and this unsettled situation
continues.


For further information, please contact:
Jukka Härmälä, Chief Executive Officer, tel. +358 2046 21404
Björn Hägglund, Deputy Chief Executive Officer, tel. +46 70 528 2785
Esko Mäkeläinen, CFO, tel. +44 20 7016 3115
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659


Stora Enso Interim Review January – March 2005


Summary of first quarter results (compared with previous quarter)
* Sales were EUR 3 144.9 million (EUR 3 241.9 million).
* Operating profit was EUR 112.7 million (EUR 41.4 million) 
  excluding non-recurring items.
* Profit before tax and minority items was EUR 83.6 million
  (EUR 23.2 million) excluding non-recurring items.
* Earnings per share were EUR 0.07 (EUR 0.03) excluding non-
  recurring items.
* Cash earnings per share were EUR 0.41 (EUR 0.38) excluding
  non-recurring items.

Demand for Group products was relatively good in the first quarter,
with a modest improvement in demand for advertising-driven paper and
continuing strength in packaging board grades.

European mills increased sales of fine paper, but publication paper
sales volumes were lower than in the previous quarter partly due to
rebuilds (lost production 134 000 tonnes). Prices rose for all
publication paper grades, but were unchanged for coated fine paper
and packaging board, and slightly lower for uncoated fine paper.
Demand for wood products was stable, although oversupply pressure
persisted in Europe.

In North America demand for uncoated magazine paper and coated fine
paper increased, and demand for coated magazine paper was unchanged.
Sales prices increased moderately.

In addition to the production lost due to the rebuilds, market-
related production curtailments totalled 12 000 tonnes, all of it in
Europe, compared with the previous quarter's 73 000 tonnes in Europe
and 7 000 tonnes in North America.

Paper and board deliveries totalled 3 573 000 tonnes, which is 
210 000 tonnes less than the previous quarter's 3 783 000 tonnes.
Production totalled 3 703 000 tonnes (3 655 000 tonnes). Deliveries
of wood products totalled 1 541 000 cubic metres, compared with the
previous quarter's 1 695 000 cubic metres.

EUR million                         2003      2004     Q1/04     Q4/04     Q1/05
Sales                           12 172.3  12 395.8   3 017.9   3 241.9   3 144.9
EBITDA1)2)                       1 707.7   1 510.9     392.7     331.2     388.8
Operating profit 2)                522.9     338.9     102.1      41.4     112.7
Non-recurring items                -54.4     369.7     115.7     179.9         -
Operating margin 2), %               4.3       2.7       3.4       1.3       3.6
Operating profit                   468.5     708.6     217.8     221.3     112.7
Profit before tax and
minority interests 2)              316.3     271.8      79.5      23.2      83.6
Profit before tax and
minority interests                 207.8     641.5     195.2     203.1      83.6
Net profit for the period          136.0     740.8     405.3     149.0      58.6
   
EPS 2), Basic, EUR                  0.24      0.26      0.06      0.03      0.07
EPS, Basic, EUR                     0.16      0.89      0.49      0.18      0.07
CEPS 2)3), EUR                      1.63      1.67      0.41      0.38      0.41
ROCE 2), %                           4.6       3.0       3.7       1.5       4.1

1) EBITDA = Earnings before Interest, Taxes, Depreciation and
   Amortisation
2) Excluding net non-recurring items. Exceptional transactions
   that are not related to normal business operations are accounted for as non-
   recurring items. The most common non-recurring items are capital gains, 
   additional write-downs, restructuring provisions and penalties. Non-recurring
   items are normally specified individually if they exceed one cent per share.
3) CEPS = (Net profit for the period + depreciation and amortisation)/average 
   number of shares

There were no non-recurring items in the first quarter of 2005 and, as a result 
of a change in accounting rules (IFRS 3 Business Combinations), goodwill is no 
longer amortised on a straight-line basis over the expected useful life.

On 1 January 2005 Stora Enso adopted IFRS 2 Share-Based Payment,
which affects personnel expenses; the comparative financial figures
for previous periods having been adjusted accordingly.


First Quarter Results (compared with previous quarter)
Sales at EUR 3 144.9 million were 3.0% lower than the previous
quarter's EUR 3 241.9 million, mainly because shutdowns for
rebuilding reduced Publication Paper deliveries. However, this was
partially offset by higher sales prices in Publication Paper and
higher deliveries in Fine Paper and Packaging Boards.

Operating profit was EUR 112.7 million (EUR 41.4 million excluding
nonrecurring items), which is 3.6% of sales. Operating profit
increased in Fine Paper and Packaging Boards. Operating loss
decreased in Wood Products.

A reduction in fixed costs, owing to higher production, especially
in Packaging Boards, improved operating profit. This was partially
offset by lost production as a consequence of the rebuilds in
Publication Paper (EUR -32 million).

Operating profit includes carbon dioxide (CO2) emission net expenses
of EUR 5.2 million as the European Union has issued emission rights,
which are accounted for according to IFRIC 3 Emission Rights. Value
changes at the Nordpool Exchange resulted in this non-cash
accounting charge.

In accordance with IFRS 2 Share-Based Payment, changes in the fair
values of options are recorded as personnel expenses. The non-cash
valuation impact on the operating profit was EUR -1.4 million.

Profit before taxes and minority interests amounted to EUR 83.6 
(EUR 23.2 excluding non-recurring items) million.

Net financial items were EUR -43.1 (EUR -32.5) million. Net interest
expenses amounted to EUR 27.6 (EUR 32.6) million and net foreign
exchange gains were EUR 5.7 (EUR -2.8) million. Other financial
items totalled a negative EUR 21.2 (positive EUR 2.9) million,
mainly related to unrealised changes in fair values of financial
instruments.

The share of associated company results amounted to EUR 14.0 (EUR 14.3) 
million with a positive effect of EUR 14.4 (EUR 11.3) million from 
Bergvik Skog.

Net taxes totalled EUR -23.6 (EUR -53.7) million and the minority
interest in profits was EUR -1.4 (EUR -0.4) million, leaving a net
profit for the quarter of EUR 58.6 (EUR 149.0) million.

Earnings per share were EUR 0.07 (EUR 0.03 excluding non-recurring
items).

The return on capital employed was 4.1% (1.5% excluding non-
recurring items). Capital employed was EUR 11 118.9 million on 
31 March 2005, a net rise of EUR 463.2 million. Higher inventories
increased working capital, and currency effects increased capital
employed by EUR 120.8 million.


Capital Structure
EUR million                      31 Dec 2004   31 Mar 2004   31 Mar 2005
   
Fixed assets                        10 848.2      11 059.5      11 104.7
Working capital                      1 301.3         924.0       1 499.0
Operating Capital                   12 149.5      11 983.5      12 603.7
Net tax liabilities                 -1 493.8      -1 422.5      -1 484.8
Capital Employed                    10 655.7      10 561.0      11 118.9
Associated companies                   568.1         498.1         588.9
Total                               11 223.8      11 059.1      11 707.8
   
Shareholders’ equity                 8 036.3       7 891.4       7 672.0
Minority interests                     136.1          62.8         108.2
Interest-bearing net liabilities     3 051.4       3 104.9       3 927.6
Financing Total                     11 223.8      11 059.1      11 707.8


Financing
Cash flow from ongoing operations was EUR 159.4 (EUR 406.0) million
and cash flow after investing activities EUR -198.1 (EUR 86.7) million. 
Cash earnings per share were EUR 0.41 (EUR 0.38 excluding non-recurring items).

At the end of the period, interest-bearing net liabilities were 
EUR 3 927.6 million, an increase of EUR 876.2 million caused partly by
the EUR 365.3 million dividend for 2004 being deducted from equity
and entered into current interest-bearing liabilities for payment on
8 April. Unutilised credit facilities and cash and cash-equivalent
reserves totalled EUR 2.3 billion.

Shareholders' equity amounted to EUR 7.7 billion or EUR 9.46 (EUR 9.80)
per share, compared with the market capitalisation on the Helsinki Stock 
Exchange on 31 March 2005 of EUR 8.8 billion.

The debt/equity ratio at 31 March 2005 was 0.51 (0.38). The currency
effect on equity was a gain of EUR 15.2 million net of the hedging
of equity translation risks. Share buy-backs decreased equity by EUR 106.6 
million in the first quarter.


Quarterly Change in Interest-bearing Net Liabilities
                                                               Transla-
                                          Cash Flow Structural     tion  Balance   
                                            Ongoing    Changes   Diffe-    Sheet        
EUR million                              Operations   and OCI*    rence   Impact         
Operating profit                              119.3      -6.6             112.7
Depreciation                                  276.1                       276.1
Change in working capital                    -236.0      50.0    -11.7   -197.7
Cash Flow from Operations                     159.4      43.4    -11.7    191.1
Capital expenditure                          -356.6                      -356.6
Acquisitions                                   -4.9       1.5     -7.5    -10.9
Other changes in fixed assets                   4.0     -64.7   -115.3   -176.0
Operating cash flow                          -198.1     -19.8   -134.5   -352.4
Net financing items                           -43.1                       -43.1
Taxes paid                                    -51.8      17.1      6.2    -28.5
Dividends                                    -365.3                      -365.3
Repurchase of own shares                     -106.6                      -106.6
Other change in shareholders’ equity and
minority interests                            -44.0      48.4     15.3     19.7
Change in Interest-bearing Net Liabilities   -808.9      45.7   -113.0   -876.2

*OCI = Other Comprehensive Income

Capital Expenditure for the First Quarter
Capital expenditure for the first quarter totalled EUR 356.6 million.

The main projects during the quarter were the new paper machine 12 at 
Kvarnsveden Mill (EUR 146.1 million), rebuilding paper machine 5 at 
Corbehem Mill (EUR 32.9 million), rebuilding paper machine 2 at Summa Mill 
(EUR 22.7 million), the Skoghall Energy 2005 project (EUR 18.2 million) 
and rebuilding paper machine 26 at Biron Mill (EUR 11.0 million).

During the quarter it was decided to rebuild boiler 2 at the
newsprint mill at Hylte in Sweden. The project is scheduled to be
completed in February 2006 at an estimated cost of EUR 40 million.

Events in Associated Companies
During the first quarter Stora Enso invested a further EUR 4.5 million 
in equity in Veracel, bringing the total amount invested by 31 March 2005 
to EUR 277.5 million. Veracel Mill is expected to start up in May/June 2005.

First Quarter Results (compared with the same period in 2004)
Sales at EUR 3 144.9 million were 4.2% higher than in the first
quarter of 2004 as volumes rose. Publication paper and coated fine
paper prices increased.

Operating profit excluding non-recurring items increased by EUR 10.6 million.
The Group's former Swedish forests contributed to operating profit until 
their transfer to the associated company Bergvik Skog AB at the end of the 
first quarter of 2004. Wood Supply Europe therefore recorded a decline of 
EUR 25 million in operating profit due to this structural change. Operating 
profit was higher in the Paper segment, but lower in Packaging Boards and 
Forest Products.

Profit before taxes and minority interests excluding non-recurring
items increased by EUR 4.1 million, and earnings per share excluding
non-recurring items by EUR 0.01.

Inspections by Competition Authorities
In May 2004 Stora Enso was the subject of inspections carried out by
the European Commission and the Finnish Competition Authority at
locations in Europe and received subpoenas issued by the US Department 
of Justice as part of preliminary anti-trust investigations into the 
paper industry in Europe and the USA. The investigations by the 
authorities in both Europe and the USA are at a fact-finding stage 
only and no formal allegations have been made against the Group or 
any of its employees. Coincident with these investigations, Stora Enso 
has been named in a number of class action lawsuits filed in the USA. 
No provision has been made.


First Quarter Events 2005

Syndicated Loan
In January Stora Enso signed a new EUR 1.75 billion syndicated
credit facility agreement with a group of 23 banks. The facility,
which has a maturity of five years, is for general corporate
purposes and replaced an existing EUR 2.5 billion syndicated
facility.

Acquisition of Minority Shareholding in Former Sylvester
In March Stora Enso Timber acquired the remaining 34% shareholding
in the Estonian Stora Enso Timber AS, formerly AS Sylvester, and
thus gained 100% ownership of the company. The purchase price was
EUR 41.8 million.

Acquisition of UPM's Minority Shareholding in Corenso
In March Stora Enso announced that it was to acquire UPM's 29%
minority shareholding in Corenso United Oy Ltd and thus gain 100%
ownership of the company. Stora Enso is purchasing the shares to
gain full control of the company and develop this strategic business
area independently. The transaction is subject to approval by
competition authorities and is expected to be closed by the end of
the second quarter.

Share Capital and Ownership
The Annual General Meeting (AGM) of Stora Enso Oyj on 22 March 2005
decided to lower the Company's share capital by EUR 41.2 million
through the cancellation of 16 300 A shares and 24 250 000 R shares.
These shares had been repurchased, at an amount of EUR 265.7 million, 
under the authorisation of the 2004 AGM and the reduction in share 
capital was registered in the Finnish Trade Register on 31 March 2005.

The 2005 AGM also authorised the Board to repurchase and dispose of
not more than 17 900 000 A shares and 62 150 000 R shares in the
Company. The repurchases started on 30 March 2005 and by 12 April
2005 the Company had repurchased a total of 19 000 A shares at an
average price of EUR 10.86 and 4 877 600 R shares at an average
price of EUR 10.86 under the new authorisation.

During the period a total of 1 878 A shares were converted into 
R shares. The latest conversion during the quarter was recorded in the
Finnish Trade Register on 16 February 2005.

At the end of the quarter Stora Enso had 179 030 345 A shares and
633 946 754 R shares in issue, of which the Company held no A shares
and 1 920 624 R shares with a nominal value of EUR 3.3 million. The
holding represents 0.76% of the Company's share capital and 0.11% of
the voting rights.

Other Decisions of the Annual General Meeting on 22 March 2005
The proposed dividend of EUR 0.45 per share was approved.

Gunnar Brock, Birgitta Kantola and Matti Vuoria were elected as new
members of the Board of Directors.

The AGM also approved a proposal to appoint a Nomination Committee
to prepare proposals concerning (a) the number of members of the
Board of Directors, (b) members of the Board of Directors, (c) the
remuneration for Chairman, Vice Chairman and members of the Board of
Directors and (d) the remuneration for the Chairman and members of
the committees of the Board of Directors.

Decisions by Board of Directors
Claes Dahlbäck will continue as Chairman of the Board of Directors
and Ilkka Niemi was elected as Vice Chairman.

Jan Sjöqvist (chairman) and Ilkka Niemi will continue as members of
the Financial and Audit Committee. Lee A. Chaden, Claes Dahlbäck and
Birgitta Kantola were elected new members of this committee.

Claes Dahlbäck (chairman), Harald Einsmann and Ilkka Niemi will
continue as members of the Compensation Committee. Matti Vuoria was
elected a new member of this committee.

Changes in Organisational Structure
In March Stora Enso announced that it will change its organisational
structure. The new organisation will focus on broadening the
experience of a number of key managers, reducing the number of
management levels within Stora Enso, expanding in emerging markets
and developing global product divisions. The new organisation
structure will take effect from 1 May 2005.

Events after the Period
On 13 April Stora Enso announced that it had closed the previously
announced acquisition of the paper merchant Papeteries de France
(PdF) from International Paper.

On 25 April Stora Enso announced that it had signed a memorandum of
understanding to acquire 100% of the shares in the German paper
merchant Schneidersöhne Group. The enterprise value of the company
is estimated to be EUR 450 million. The all-cash acquisition is
expected to be completed during the third quarter of 2005, subject
to due diligence and approval by regulatory and competition
authorities, as well as other required approvals.

Programme for Profit Improvement
After completing major asset restructuring programmes at its
European units, Stora Enso is initiating a programme with the target
of an improvement in annual profit before tax of EUR 300 million,
mainly in Europe, to be achieved from mid 2007 onwards. Capital
expenditure will be kept at or below depreciation with a greater
emphasis on emerging markets.

In an environment of low industry profitability, tighter competition
and a weaker US dollar, Stora Enso is responding with enhanced cost
savings in addition to continuous improvement measures.

The programme will comprise efficiency improvements in production,
sales and logistics, working capital management, sourcing and
administration. There may also be closure or disposal of units with
especially high costs or low long-term earnings potential, and
redundancies may occur.

Outlook
In Europe demand for advertising-driven paper grades is expected to
be good. Publication paper prices were increased in the beginning of
the year and are expected to remain at that level. Coated and
uncoated fine paper demand is improving, but uncoated fine paper
sheet prices are under pressure due to overcapacity. Price increases
have been announced for some coated fine paper segments. Demand for
packaging boards is stable and some price increases are being
implemented in consumer boards, but corrugated board prices are
under pressure. Demand for wood products is improving slowly and
prices are expected to be stable.

In North America demand for advertising-driven papers remains good.
Prices for magazine paper and coated fine paper reels are expected
to increase again during the second quarter. The North American
Profit Enhancement Programme is proceeding as planned.

In Asia fine paper demand remains healthy and prices are increasing.

In April there have been unscheduled shutdowns of mills in Finland
related to ongoing labour negotiations, and this unsettled situation
continues.


This report is unaudited.


Helsinki, 27 April 2005
Stora Enso Oyj
Board of Directors



Segments (compared with the previous quarter)


PAPER

Publication Paper
                                                                          Change
EUR million           2004    Q1/04    Q2/04    Q3/04    Q4/04    Q1/05   Q1/Q4%

Sales              4 343.3  1 019.2  1 069.6  1 090.6  1 163.9  1 049.5     -9.8
Operating profit*     91.3      8.7     -3.8     48.2     38.2     20.0    -47.6
% of sales             2.1      0.9     -0.4      4.4      3.3      1.9
ROOC, %**              2.3      0.9     -0.4      4.6      3.6      1.9
Deliveries, 1000 t   7 398    1 732    1 819    1 846    2 001    1 701    -15.0
Production, 1000 t   7 396    1 830    1 782    1 886    1 899    1 775     -6.5

* Excluding non-recurring items and goodwill amortisation 
** ROOC = 100% x Operating profit/Operating capital

Publication paper sales were EUR 1 049.5 million, down 9.8% on the
previous quarter. Price increases were offset by lower sales volumes
during the first quarter. Operating profit was EUR 20.0 million,
down 47.6% on the previous quarter because deliveries were lower due
to seasonal effects and major asset rebuilds. In addition to the 134 000 
tonnes of lost production due to the rebuilds, there were minimal market-
related production curtailments.

In Europe demand for publication paper was about the same as a year
ago. Overseas demand remained strong, particularly for coated
magazine paper. Operating rates were satisfactory at all mills and
prices for all publication paper grades rose.

Producer inventories have increased following seasonal patterns to
the levels of a year ago, though customers have apparently decreased
their inventories.

In North America demand was strong for magazine paper and weaker for
newsprint. Prices for all publication paper grades rose during the
quarter and producer inventories are normal.

There is evidence of a recovery in advertising in Europe this year,
so the outlook for advertising-driven paper demand for the rest of
the year is good. In North America, advertising spending is expected
to remain firm and further paper price increases are anticipated during
the second quarter.


Fine Paper
                                                                          Change
EUR million           2004    Q1/04    Q2/04    Q3/04    Q4/04    Q1/05   Q1/Q4%

Sales              3 173.1    788.9    786.3    791.8    806.1    833.1      3.3
Operating profit*     64.3     18.1      4.6     27.9     13.7     47.8      N/M
% of sales             2.0      2.3      0.6      3.5      1.7      5.7
ROOC, %**              1.9      2.2      0.5      3.2      1.6      5.6
Deliveries, 1000 t   3 893      959      964      974      995    1 041      4.6
Production, 1000 t   4 033      984      999    1 041    1 010    1 030      2.0

* Excluding non-recurring items and goodwill amortisation 
** ROOC = 100% x Operating profit/Operating capital

Fine paper sales were EUR 833.1 million, up 3.3% on the previous quarter 
mainly due to higher deliveries. Operating profit was EUR 47.8 million, 
up EUR 34.1 million on the previous quarter due to higher deliveries and 
reduced fixed costs. There were minimal market-related production curtailments.

In Europe demand for uncoated fine paper was healthy. Price pressure
due to oversupply persists in certain uncoated fine paper grades.
Industry mill stocks are in balance and merchant inventories are
normal.

In Asia demand for uncoated fine paper strengthened during the first
quarter and prices increased.

In Europe demand for coated fine paper was good. Prices for coated
fine paper reels were stable, although prices for merchant stock
sheets were under pressure. Industry mill stocks were quite high,
but have recently declined slightly, though merchant stocks remained
low throughout the first quarter. Industry order books are expected
to remain healthy to the end of the second quarter.

In North America demand for coated fine paper was good.

In Asia demand for coated fine paper increased after the Chinese New
Year. Prices stabilised towards the end of the fourth quarter and
have increased slightly since then.

Coated fine paper prices are expected to rise in Europe and to
continue rising in North America and Asia during the second quarter.

Merchants
Sales were EUR 182.1 million, down 0.7% on the previous quarter mainly 
due to lower average prices. Operating profit was EUR 2.7 million, 
EUR 1.2 million down on the previous quarter due to reduced margins.


PACKAGING BOARDS
                                                                          Change
EUR million           2004    Q1/04    Q2/04    Q3/04    Q4/04    Q1/05   Q1/Q4%

Sales              2 771.5    692.0    704.4    674.6    700.5    722.7      3.2
Operating profit*    277.6     82.1     67.7     84.8     43.0     73.7     71.4
% of sales            10.0     11.9      9.6     12.6      6.1     10.2
ROOC, %**             10.6     13.1     10.7     13.4      6.5     10.9
Deliveries, 1000 t   3 119      776      790      766      787      831      5.6
Production, 1000 t   3 090      771      775      798      747      898     20.2

* Excluding non-recurring items and goodwill amortisation 
**ROOC = 100% x Operating profit/Operating capital
 
Packaging board sales were EUR 722.7 million, up 3.2% on the
previous quarter, partly because the Intercell acquisition increased
sales by EUR 40.4 million. Operating profit was EUR 73.7 million, up
71.4% on the previous quarter due to lower maintenance costs and
higher production. There were minimal market-related production
curtailments. Demand has been good and is expected to remain stable
in all businesses.

Some price increases have been implemented and others are expected
in consumer boards, though there is pressure on prices for corrugated
packaging.


FOREST PRODUCTS

Wood Products
                                                                          Change
EUR million           2004    Q1/04    Q2/04    Q3/04    Q4/04    Q1/05   Q1/Q4%

Sales              1 566.8    373.1    419.2    388.5    386.0    366.9     -4.9
Operating profit*     34.7     11.4     21.3     10.9     -8.9     -4.0     55.1
% of sales             2.2      3.1      5.1      2.8     -2.3     -1.1
ROOC, %**              5.2      7.0     12.5      6.3     -5.2     -2.3
Deliveries, 1000 m3  6 664    1 597    1 777    1 595    1 695    1 541     -9.1

* Excluding non-recurring items and goodwill amortisation 
**ROOC = 100% x Operating profit/Operating capital

Wood product sales were EUR 366.9 million, down 4.9% on the previous
quarter mainly due to lower production and invoicing volumes. There
was an operating loss of EUR 4.0 million due to lower volumes and an
investment shutdown at Zdirec Mill (EUR -3.5 million). Product
inventories increased significantly during the first quarter of
2005. In general, losses incurred in the Nordic countries were
compensated by profits in Central Europe.

Construction activity has remained firm despite slight increases in
mortgage interest rates in the USA and UK.

Softwood production has increased considerably in Europe. Some of
the additional volume has been absorbed by the strong US market, but
the European market remains oversupplied and production inventories
are high.

The peak spring season should improve the market balance and prices
are expected remain stable.

Wood Supply Europe
Sales were EUR 674.7 million, up 2.7% on the previous quarter mainly
for seasonal reasons. Operating profit was EUR 3.1 million, having
improved slightly as wood costs decreased.

Deliveries to Group mills in Finland, Sweden, the Baltic States,
Russia and Continental Europe totalled 10.9 million cubic metres
(solid wood under bark), 6.9% up on the previous quarter.

Storms at the beginning of the quarter in southern Sweden and the
Baltic States depressed coniferous pulpwood and sawlog prices in
these markets. An oversupply emerged in the Russian sawlog market
and prices decreased. There is  strong demand for short-fibre wood
in the markets around the Baltic Sea.


Financials

Key Ratios                         Q1/04   Q2/04   Q3/04   Q4/04    2004   Q1/05

Earnings per share (basic), EUR     0.49    0.06    0.16    0.18    0.89    0.07
Earnings per share excl. non
 recurring items, EUR               0.06    0.06    0.11    0.03    0.26    0.07
Cash earnings per share (CEPS),EUR  0.54    0.43    0.51    0.53    2.02    0.41
CEPS excl. non-recurring items,EUR  0.41    0.43    0.46    0.38    1.67    0.41

Return on capital employed (ROCE),%  7.9     2.1     7.9     8.2     6.4     4.1
ROCE excl. non-recurring items,%     3.7     2.1     5.1     1.5     3.0     4.1
Return on equity (ROE), %           20.5     2.6     6.9     7.4     9.3     3.0
Debt/equity ratio                   0.39    0.43    0.42    0.38    0.38    0.51
Equity per share, EUR               9.46    9.53    9.70    9.80    9.80    9.46
Equity ratio, %                     47.7    48.2    48.5    49.8    49.8    45.8

Operating profit, % of sales         7.2     1.8     7.0     6.8     5.7     3.6
Operating profit excl. non
 recurring items, % of sales         3.4     1.8     4.6     1.3     2.7     3.6
Capital expenditure,  EUR million  216.1   281.1   268.1   214.3   979.6   356.6
Capital expenditure,  % of sales     7.2     9.1     8.8     6.6     7.9    11.3
Capital employed,  EUR million    10 561  10 812  10 831  10 656  10 656  11 119
Interest-bearing net
 liabilities, EUR million          3 105   3 356   3 343   3 052   3 052   3 928

Average number of employees       42 446  43 795  44 045  43 779  43 779  44 870
Average number of shares (million)
- periodic                         835.3   831.8   826.3   822.0   828.8   816.3
- cumulative                       835.3   833.6   831.1   828.8   828.8   816.3
- cumulative, diluted              836.0   834.4   831.9   829.4   829.4   816.9


Key Exchange Rates for the Euro
One Euro is                   Closing Rate                   Average Rate
                      31 Dec 2004     31 Mar 2005     31 Dec 2004    31 Mar 2005
SEK                      9.0206          9.1430         9.1253         9.0773
USD                      1.3621          1.2964         1.2440         1.3107
GBP                      0.7051          0.6885         0.6786         0.6933
CAD                      1.6416          1.5737         1.6166         1.6073


Condensed Consolidated Income Statement
EUR million                                     2004       Q1/2004       Q1/2005
   
Sales                                       12 395.8       3 017.9       3 144.9
Other operating income                         153.8         140.2          19.6
Materials and services                      -6 534.6      -1 560.0      -1 674.0
Freight and sales commissions               -1 367.8        -325.6        -347.4
Personnel expenses                          -1 934.8        -552.9        -556.6
Other operating expenses                      -831.8        -211.2        -197.7
Depreciation, amortisation and
 impairment charges                         -1 172.0        -290.6        -276.1
Operating Profit                               708.6         217.8         112.7
Share of results of associated
 companies                                      38.9          -2.3          14.0
Net financial items                           -106.0         -20.3         -43.1
Profit before Tax and Minority
 Interests                                     641.5         195.2          83.6
Income tax expense                             107.4         214.3         -23.6
Profit after Tax                               748.9         409.5          60.0
Minority interests                              -8.1          -4.2          -1.4
Net Profit for the Period                      740.8         405.3          58.6
   
Key Ratios
Basic earnings per share, EUR                   0.89          0.49          0.07
Diluted earnings per share, EUR                 0.89          0.49          0.07


Condensed Consolidated Cash Flow Statement
EUR million                                      2004       Q1/2004      Q1/2005
   
Cash Flow from Operating Activities
 Operating profit                               708.6         217.8        112.7
 Adjustments                                  1 039.1         166.2        284.9
 Change in  disability pension scheme          -179.9             -            -
 Change in net working capital                 -367.7        -215.2       -236.0
 Change in short-term interest-bearing
  receivables                                   444.3         499.0         69.0
Cash Flow Generated by Operations             1 644.4         667.8        230.6
 Net financial items                           -124.8         -14.1        -24.8
 Income taxes paid                             -114.2         -79.9        -51.8
Net Cash Provided by Operating Activities     1 405.4         573.8        154.0
   
Cash Flow from Investing Activities
 Acquisitions                                  -426.8        -186.1        -48.8
 Proceeds from sale of fixed assets and
  shares                                        253.9         212.3          2.9
 Capital expenditure                           -979.6        -216.1       -357.7
 Proceeds from the long-term
  receivables, net                             -182.5        -171.4         -0.2
Net Cash Used in Investing Activities        -1 335.0        -361.3       -403.8
   
Cash Flow from Financing Activities
 Change in long-term liabilities              1 261.2          -4.9         10.7
 Change in short-term borrowings               -697.5         144.4        363.0
 Dividends paid                                -375.7             -            -
 Minority dividends                              -1.9             -            -
 Options exercised                                1.6           4.0            -
 Purchase of own shares                        -198.6         -42.7       -106.6
Net Cash Used in Financing Activities           -10.9         100.8        267.1
   
Net Increase in Cash and Cash Equivalents        59.5         313.3         17.3
 Cash and bank in acquired companies             45.9           0.0          0.0
 Cash and bank in sold companies                -29.5         -36.4          0.0
 Translation differences on cash holdings        -3.1           1.8          1.9
 Cash and bank at the beginning of period       201.5         201.5        274.3
Cash and Cash Equivalents at Period End         274.3         480.2        293.5



Property, Plant and Equipment, Intangible Assets and Goodwill 
EUR million                                      2004       Q1/2004      Q1/2005

Carrying value at 1 January                  12 535.3      12 535.3     10 715.5
Acquisition of subsidiary companies             190.2             -          0.0
Additions                                       979.6         216.1        356.6
Emission rights                                                             64.7
Disposals                                    -1 635.3      -1 587.7         -2.7
Depreciation, amortisation and impairment    -1 172.0        -290.6       -276.1
Translation difference and other               -189.4          36.3        114.1
Balance Sheet Total                          10 715.5      10 909.4     10 972.1
   
Acquisitions of Subsidiary Companies
Cash and cash equivalents                        45.9             -            -
Working capital                                  44.0             -            -
Operating fixed assets                          183.3             -            -
Interest bearing assets                           0.7             -            -
Tax liabilities                                 -19.2             -            -
Interest bearing liabilities                    -11.4             -            -
Non-cash share exchange                          -3.9             -            -
Minority interests                              -69.9             -        -43.9
Fair value of net assets                        169.5             -        -43.9
Goodwill                                          6.9             -            -
Total Purchase Consideration                    176.4             -        -43.9


Borrowings
EUR million                                       2004      Q1/2004      Q1/2005
   
Non-current borrowings                         3 328.1      3 425.5      3 167.2
Current borrowings                               699.5        868.6      1 736.4
                                               4 027.6      4 294.1      4 903.6
   
Carrying value at 1 January                    5 174.2      5 174.2      4 027.6
Debt acquired with new subsidiaries               11.4            -            -
Debt disposed with sold subsidiaries          -1 518.8     -1 487.3            -
Proceeds from / -payments of borrowings (net)    552.5        145.3        763.7
Translation difference and other                -191.7        461.9        112.3
Total Borrowings                               4 027.6      4 294.1      4 903.6


Condensed Consolidated Balance Sheet

Assets
EUR million                              31 Dec 2004   31 Mar 2004   31 Mar 2005
   
Fixed and Other Long-term Assets
Fixed assets                          O     10 715.5      10 909.4      10 972.1
Investment in associated companies             568.1         498.1         588.9
Listed securities                     I        220.1         220.4         236.5
Unlisted shares                       O        132.7         150.1         132.6
Non-current loan receivables          I        233.1         216.5         230.6
Deferred tax assets                   T         11.4          10.9          19.2
Other non-current assets              O        210.5         172.8         233.7
                                            12 091.4      12 178.2      12 413.6
   
Current Assets
Inventories                           O      1 771.3       1 726.7       1 950.8
Tax receivables                       T        160.9         163.7         159.1
Operative receivables                 O      1 865.3       1 864.2       1 938.0
Interest-bearing receivables          I        248.7         272.0         215.4
Cash and cash equivalents             I        274.3         480.2         293.5
                                             4 320.5       4 506.8       4 556.8
   
Total assets                                16 411.9      16 685.0      16 970.4


Shareholders' Equity and Liabilities
EUR million                              31 Dec 2004   31 Mar 2004   31 Mar 2005
   
Shareholders’ Equity                         8 036.3       7 891.4       7 672.0
Minority Interests                             136.1          62.8         108.2
   
Long-term Liabilities
Pension provisions                    O        637.8         927.1         658.5
Other provisions                      O         60.9          80.7          63.2
Deferred tax liabilities              T      1 314.6       1 258.8       1 281.0
Long-term debt                        I      3 328.1       3 425.5       3 167.2
Long-term operative liabilities       O        174.0         179.5         222.1
                                             5 515.4       5 871.6       5 392.0
Current Liabilities
Current portion of long-term debt     I        102.1         103.9         335.6
Interest-bearing liabilities          I        597.4         764.6       1 400.8
Operative liabilities                 O      1 673.1       1 652.4       1 679.7
Tax liabilities                       T        351.5         338.3         382.1
                                             2 724.1       2 859.2       3 798.2
   
Total Liabilities                            8 239.5       8 730.8       9 190.2
   
Total Shareholders’ Equity and
Liabilities                                 16 411.9      16 685.0      16 970.4

Items designated with "O" are included in operating capital. 
Items designated with "I" are included in interest-bearing net liabilities.
Items designated with "T" are included in the tax liability.


Statement of Changes in Shareholders' Equity
                                                 OCI &         
                        Share   Share Treasury Revalua-        Retained
EUR million           Capital  Premium  Shares    tion     CTA Earnings    Total
   
Balance at 31 December 2003
                      1 469.3  1 237.4  -258.0   114.6  -197.1  5 717.5  8 083.7
Restatement of opening balance
 Finnish Statutory 
   Pension Scheme           -        -       -       -       -   -130.9   -130.9
Balance at 1 January 2004
(restated)            1 469.3  1 237.4  -258.0   114.6  -197.1  5 586.7  7 952.9
Repurchase of Stora Enso Oyj 
 shares                     -        -  -198.6       -       -        -   -198.6
Cancellation of Stora Enso Oyj
 shares                 -47.3   -228.5   275.8       -       -        -      0.0
Dividend 
 (EUR 0.45 per share)       -        -       -       -       -   -375.7   -375.7
Options exercised         1.3      0.3       -       -       -        -      1.6
Net profit for the period   -        -       -       -   -11.7    739.7    728.0
OCI entries                 -        -       -   -47.0       -        -    -47.0
Translation adjustment      -        -       -       -   -10.1        -    -10.1
Balance at 31 December 2004
                      1 423.3  1 009.2  -180.8    67.6  -218.9  5 950.7  8 051.1
Restatement of opening balance
 Effect of adopting IFRS 2  -        -       -       -       -    -14.8    -14.8
Balance at 1 January 2005
 (restated)           1 423.3  1 009.2  -180.8    67.6  -218.9  5 935.9  8 036.3
Repurchase of Stora Enso Oyj
 shares                     -        -  -106.6       -       -        -   -106.6
Cancellation of Stora Enso Oyj
 shares                 -41.2   -224.5   265.7       -       -        -        0
Dividend
 (EUR 0.45 per share)       -        -       -       -       -   -365.3   -365.3
Options exercised           -     -0.1       -       -       -        -     -0.1
Minority buyout
 of Stora Enso Timber       -        -       -       -       -    -14.5    -14.5
Revaluation
 of Emission Rights         -        -       -    15.0       -        -     15.0
Net profit for the period   -        -       -       -       -     58.6     58.6
OCI entries                 -        -       -    33.4       -        -     33.4
Translation adjustment      -        -       -       -    15.2        -     15.2
Balance at 31 March 2005
                      1 382.1    784.6   -21.7   116.0  -203.7  5 614.7  7 672.0


CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income


Commitments and Contingencies
EUR million                          31 Dec 2004      31 Mar 2004    31 Mar 2005
   
On own Behalf
 Pledges given                               0.8              3.8            0.3
 Mortgages                                 118.8            104.5          109.6
On Behalf of Associated Companies
 Mortgages                                   0.8              0.8            0.8
 Guarantees                                209.3             48.5          235.3
On Behalf of Others
 Pledges given                               0.0              2.2            0.0
 Mortgages                                   0.0             10.9            0.0
 Guarantees                                  6.8             13.5            6.9
Other Commitments, Own
 Leasing commitments, in next 12 months     32.6             36.1           31.9
 Leasing commitments, after next 12 months 159.2            165.2          152.3
 Pension liabilities                         2.2              2.8            1.2
 Other commitments                          92.5             97.4          106.2
Total                                      623.0            485.7          644.5
   
 Pledges given                               0.8              6.0            0.3
 Mortgages                                 119.6            116.2          110.4
 Guarantees                                216.1             62.0          242.2
 Leasing commitments                       191.8            201.3          184.2
 Pension liabilities                         2.2              2.8            1.2
 Other commitments                          92.5             97.4          106.2
Total                                      623.0            485.7          644.5


Net Fair Values of Derivative Financial Instruments
                                  31 Dec    31 Mar              31 Mar
EUR million                         2004      2004                2005
                                     Net       Net  Positive  Negative       Net
                                    Fair      Fair      Fair      Fair      Fair
                                  Values    Values    Values    Values    Values
Interest rate swaps                151.3     150.8     130.9      -7.8     123.1
Interest rate options                1.0       1.2       0.5      -0.5       0.0
Cross-currency swaps               -11.6     -10.9       1.1     -14.1     -13.0
Forward contracts                   89.5      47.5      25.3     -35.1      -9.8
FX Options                           1.8       0.2       1.7      -2.7      -1.0
Commodity contracts                 23.6      83.1      76.3      -7.1      69.2
Equity swaps                       -11.4     -37.8      15.1     -41.2     -26.1
Total                              244.2     234.1     250.9    -108.5     142.4


Nominal Values of Derivative Financial Instruments
EUR million                          31 Dec 2004     31 Mar 2004     31 Mar 2005

Interest Rate Derivatives
Interest rate swaps
 Maturity under 1 year                      66.5           109.5           702.4
 Maturity 2–5 years                        953.4           759.0           393.2
 Maturity 6–10 years                     1 469.9           717.1         1 567.3
 Maturity over 10 years                      0.0             0.0             0.0
                                         2 489.8         1 585.6         2 662.9
Interest rate futures                        0.0           125.0             0.0
Interest rate options                      198.4           597.2           148.4
Total                                    2 688.2         2 307.8         2 811.3
   
Foreign Exchange Derivatives
-  Cross-currency swap
agreements                                 102.7           108.7           105.4
-  Forward contracts                     2 479.8         3 113.2         2 428.9
-  FX Options                              588.3           331.8           695.4
Total                                    3 170.8         3 553.7         3 229.7
   
Commodity derivatives
Commodity contracts                        442.7           430.9           517.7
Total                                      442.7           430.9           517.7
   
Equity swaps
Equity swaps                               359.5           359.5           397.4
Total                                      359.5           359.5           397.4


Sales by Product Area
EUR million          2003    Q1/04    Q2/04    Q3/04    Q4/04      2004    Q1/05
   
Publication Paper 4 295.7  1 019.2  1 069.6  1 090.6  1 163.9   4 343.3  1 049.5
Fine Paper        3 197.7    788.9    786.3    791.8    806.1   3 173.1    833.1
Merchants           627.6    160.3    148.5    145.7    183.4     637.9    182.1
Other              -281.3    -70.4    -68.6    -72.3    -76.5    -287.8    -77.5
Paper             7 839.7  1 898.0  1 935.8  1 955.8  2 076.9   7 866.5  1 987.2
Packaging Boards  2 761.6    692.0    704.4    674.6    700.5   2 771.5    722.7
Wood Products     1 400.0    373.1    419.2    388.5    386.0   1 566.8    366.9
Wood Supply 
  Europe          2 074.3    634.9    621.4    568.3    657.0   2 481.6    674.7
Other              -591.0   -229.8   -225.6   -207.1   -229.0    -891.5   -234.4
Forest Products   2 883.3    778.2    815.0    749.7    814.0   3 156.9    807.2
Other            -1 312.3   -350.3   -352.3   -347.0   -349.5  -1 399.1   -372.2
Total            12 172.3  3 017.9  3 102.9  3 033.1  3 241.9  12 395.8  3 144.9


Restated Operating Profit by Product Area excluding Non-recurring
Items and Goodwill Amortisation
EUR million           2003    Q1/04    Q2/04    Q3/04    Q4/04     2004    Q1/05
   
Publication Paper    111.1      8.7     -3.8     48.2     38.2     91.3     20.0
Fine Paper           153.5     18.1      4.6     27.9     13.7     64.3     47.8
Merchants             -6.7      3.3      2.4      1.6      3.9     11.2      2.7
Paper                257.9     30.1      3.2     77.7     55.8    166.8     70.5
Packaging Boards     292.4     82.1     67.7     84.8     43.0    277.6     73.7
Wood Products         26.5     11.4     21.3     10.9     -8.9     34.7     -4.0
Wood Supply Europe   116.5     31.3      3.3      3.1     -5.4     32.3      3.1
Forest Products      143.0     42.7     24.6     14.0    -14.3     67.0     -0.9
Other Areas          -54.4    -30.1    -17.3    -15.7    -19.1    -82.2    -30.6
Operating Profit 
 excl. Goodwill
  amortisation       638.9    124.8     78.2    160.8     65.4    429.2    112.7
Goodwill
 amortisation       -116.0    -22.7    -21.9    -21.7    -24.0    -90.3        -
Non-recurring items  -54.4    115.7        -     74.1    179.9    369.7        -
Operating Profit
 (IFRS)              468.5    217.8     56.3    213.2    221.3    708.6    112.7
Net financial items -237.7    -20.3    -26.2    -27.0    -32.5   -106.0    -43.1
Associated companies -23.0     -2.3     16.7     10.2     14.3     38.9     14.0
Profit before Tax and Minority
 Interests           207.8    195.2     46.8    196.4    203.1    641.5     83.6
Income tax expense   -66.0    214.3      5.6    -58.8    -53.7    107.4    -23.6
Profit after Tax     141.8    409.5     52.4    137.6    149.4    748.9     60.0
Minority interests    -5.8     -4.2     -2.1     -1.4     -0.4     -8.1     -1.4
Net Profit           136.0    405.3     50.3    136.2    149.0    740.8     58.6


Non-recurring Items by Product Area
EUR million           2003    Q1/04    Q2/04    Q3/04    Q4/04     2004    Q1/05
   
Publication Paper    -29.5        -        -     30.8     45.6     76.4        -
Fine Paper           -10.3        -        -     41.5     37.0     78.5        -
Merchants                -        -        -        -      0.8      0.8        -
Paper                -39.8        -        -     72.3     83.4    155.7        -
Packaging Boards         -        -        -        -     67.0     67.0        -
Wood Products            -        -        -        -     16.4     16.4        -
Wood Supply
Europe                   -    115.7        -        -     10.6    126.3        -
Forest Products          -    115.7        -        -     27.0    142.7        -
Other                -14.6        -        -      1.8      2.5      4.3        -
Total Non
recurring Items      -54.4    115.7        -     74.1    179.9    369.7        -


Restated Operating Profit by Product Area
EUR million           2003    Q1/04    Q2/04    Q3/04    Q4/04     2004    Q1/05
   
Publication Paper     81.6      8.7     -3.8     79.0     83.8    167.7     20.0
Fine Paper           143.2     18.1      4.6     69.4     50.7    142.8     47.8
Merchants             -6.7      3.3      2.4      1.6      4.7     12.0      2.7
Paper                218.1     30.1      3.2    150.0    139.2    322.5     70.5
Packaging Boards     292.4     82.1     67.7     84.8    110.0    344.6     73.7
Wood Products         26.5     11.4     21.3     10.9      7.5     51.1     -4.0
Wood Supply Europe   116.5    147.0      3.3      3.1      5.2    158.6      3.1
Forest Products      143.0    158.4     24.6     14.0     12.7    209.7     -0.9
Other                -69.0    -30.1    -17.3    -13.9    -16.6    -77.9    -30.6
Operating Profit 
 excl. Goodwill
  amortisation       584.5    240.5     78.2    234.9    245.3    798.9    112.7
Goodwill
 amortisation       -116.0    -22.7    -21.9    -21.7    -24.0    -90.3        -
Operating Profit     468.5    217.8     56.3    213.2    221.3    708.6    112.7
Net financial items -237.7    -20.3    -26.2    -27.0    -32.5   -106.0    -43.1
Associated companies -23.0     -2.3     16.7     10.2     14.3     38.9     14.0
Profit before Tax and Minority
 Interests           207.8    195.2     46.8    196.4    203.1    641.5     83.6
Income tax expense   -66.0    214.3      5.6    -58.8    -53.7    107.4    -23.6
Profit after Tax     141.8    409.5     52.4    137.6    149.4    748.9     60.0
Minority interests    -5.8     -4.2     -2.1     -1.4     -0.4     -8.1     -1.4
Net Profit           136.0    405.3     50.3    136.2    149.0    740.8     58.6



Pro-forma figures according to reorganised reporting structure
effective 1 May 2005


Operating Profit by Segment excluding Non-recurring items and 
Goodwill Amortisation
EUR million           2003    Q1/04    Q2/04    Q3/04    Q4/04     2004    Q1/05
   
Publication Paper    121.5     12.1      4.3     46.4     40.7    103.5     21.1
Fine Paper           151.4     14.5     -0.4     29.7     14.6     58.4     48.4
Merchants             -6.7      3.3      2.4      1.6      3.9     11.2      2.7
Packaging Boards     284.1     82.3     64.6     84.8     39.6    271.3     72.0
Wood Products         26.5     11.4     21.3     10.9     -8.9     34.7     -4.0
Wood Supply Europe   116.5     31.3      3.3      3.1     -5.4     32.3      3.1
Other Areas          -54.4    -30.1    -17.3    -15.7    -19.1    -82.2    -30.6
Operating Profit
 excl. Goodwill
  amortisation       638.9    124.8     78.2    160.8     65.4    429.2    112.7
Goodwill
 amortisation       -116.0    -22.7    -21.9    -21.7    -24.0    -90.3        -
Non-recurring items  -54.4    115.7        -     74.1    179.9    369.7        -
Operating Profit
 (IFRS)              468.5    217.8     56.3    213.2    221.3    708.6    112.7
Net financial items -237.7    -20.3    -26.2    -27.0    -32.5   -106.0    -43.1
Associated companies- 23.0    - 2.3     16.7     10.2     14.3     38.9     14.0
Profit before Tax and 
 Minority Interests  207.8    195.2     46.8    196.4    203.1    641.5     83.6
Income tax expense   -66.0    214.3      5.6    -58.8    -53.7    107.4    -23.6
Profit after Tax     141.8    409.5     52.4    137.6    149.4    748.9     60.0
Minority interests    -5.8     -4.2    - 2.1     -1.4     -0.4     -8.1     -1.4
Net Profit           136.0    405.3     50.3    136.2    149.0    740.8     58.6


Non-recurring Items by Segment
EUR million           2003    Q1/04    Q2/04    Q3/04    Q4/04     2004    Q1/05
   
Publication Paper    -29.5        -        -     30.8     45.6     76.4        -
Fine Paper            -7.2        -        -     29.9     37.0     66.9        -
Merchants                -        -        -        -      0.8      0.8        -
Packaging Boards      -3.1        -        -     11.6     67.0     78.6        -
Wood Products            -        -        -        -     16.4     16.4        -
Wood Supply Europe       -    115.7        -        -     10.6    126.3        -
Other                -14.6        -        -      1.8      2.5      4.3        -
Total Non-
recurring Items      -54.4    115.7        -     74.1    179.9    369.7        -


Operating Profit by Segment
EUR million           2003    Q1/04    Q2/04    Q3/04    Q4/04     2004    Q1/05
   
Publication Paper     92.0     12.1      4.3     77.2     86.3    179.9     21.1
Fine Paper           144.2     14.5     -0.4     59.6     51.6    125.3     48.4
Merchants             -6.7      3.3      2.4      1.6      4.7     12.0      2.7
Packaging Boards     281.0     82.3     64.6     96.4    106.6    349.9     72.0
Wood Products         26.5     11.4     21.3     10.9      7.5     51.1     -4.0
Wood Supply Europe   116.5    147.0      3.3      3.1      5.2    158.6      3.1
Other                -69.0    -30.1    -17.3    -13.9    -16.6    -77.9    -30.6
Operating Profit
 excl. Goodwill
  amortisation       584.5    240.5     78.2    234.9    245.3    798.9    112.7
Goodwill
 amortisation       -116.0    -22.7    -21.9    -21.7    -24.0    -90.3        -
Operating Profit     468.5    217.8     56.3    213.2    221.3    708.6    112.7
Net financial items -237.7    -20.3    -26.2    -27.0    -32.5   -106.0    -43.1
Associated companies -23.0     -2.3     16.7     10.2     14.3     38.9     14.0
Profit before Tax and 
 Minority Interests  207.8    195.2     46.8    196.4    203.1    641.5     83.6
Income tax expense   -66.0    214.3      5.6    -58.8    -53.7    107.4    -23.6
Profit after Tax     141.8    409.5     52.4    137.6    149.4    748.9     60.0
Minority interests    -5.8     -4.2     -2.1     -1.4     -0.4     -8.1     -1.4
Net Profit           136.0    405.3     50.3    136.2    149.0    740.8     58.6


Stora Enso Shares

Closing Price        Helsinki, EUR           Stockholm, SEK       New York, USD
                 Series A    Series R    Series A    Series R          ADRs
January            11.06       11.05      100.50       100.50         14.40
February           11.53       11.50      104.00       104.00         15.21
March              10.98       10.83       99.75       99.25          14.05


Trading Volume       Helsinki                Stockholm            New York
                 Series A    Series R     Series A   Series R          ADRs
January          291 951     75 394 256   132 182    15 692 325     1 695 200
February         555 640     77 601 594   159 981    13 844 140     1 642 300
March            540 651     98 341 080   355 946    14 741 679     2 351 700
Total            1 388 242  251 336 930   648 109    44 278 144     5 689 200



Publication dates for financial information
Interim Review for January – June 2005          27 July 2005 Interim
Review for January – September 2005             27 October 2005


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.


STORA ENSO OYJ

p.p.    Jussi Siitonen      Jukka Marttila


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