Stora Enso Interim Review January-June 2006
STORA ENSO OYJ Stock Exchange Release 26 July 2006 at 13.00
Stora Enso Interim Review January-June 2006
Sales and operating profit broadly unchanged from first to second quarter
Sales and operating profit in the second quarter were broadly unchanged from the
first quarter and cash flow after investing activities improved considerably.
The Group's profit improvement programme, Profit 2007, is proceeding ahead of
schedule. Demand for most of the Group's products in the second quarter was
somewhat softer than in the previous quarter.
Summary of Second Quarter Results (compared with Q1/2006)
* Sales were EUR 3 616.3 (EUR 3 607.7) million.
* Operating profit was EUR 182.2 (EUR 194.1) million excluding non-recurring
items.
* Profit before tax was EUR 53.2 (EUR 210.9) million excluding non-recurring
items; the difference is due mainly to unrealised fair valuation items
(non-cash) in net financial items (negative EUR 71.9 million in the second
quarter vs. positive EUR 32.8 million in the first quarter).
* Earnings per share were EUR 0.05 (EUR 0.20) excluding non-recurring items.
Cash earnings per share were EUR 0.39 (EUR 0.54) excluding non-recurring items.
* Cash flow after investing activities increased to EUR 299.6 (EUR 120.9) million.
Markets
In Europe market demand in most of the Group's products was stronger than a year
ago, driven by economic growth and rising advertising and direct marketing
expenditure, although somewhat weaker than in the previous quarter.
Market demand for newsprint was healthy in Europe and stronger than a year ago and
in the previous quarter. Demand for uncoated magazine paper was considerably
stronger than last year, but coated magazine paper demand stagnated, partly due to
substitution by uncoated magazine paper grades. Market demand was weaker than in
the previous quarter in all magazine paper grades. Publication paper prices were
similar to the previous quarter and higher than a year ago, especially in
newsprint.
Demand in the European fine paper market was stronger than a year ago but weaker
than in the previous quarter. Uncoated fine paper prices firmed up slightly during
the quarter, whereas coated fine paper prices remained stable. Market demand for
packaging boards remained unchanged from the previous quarter and was higher than
a year ago. Some price increases were implemented, primarily in industrial
packaging boards.
Market demand for wood products was satisfactory. Constrained supply due to tight
raw material availability firmed up the market and enabled some price increases
in sawn goods.
In North America market demand for all publication paper grades was weaker than
a year earlier but virtually unchanged on the previous quarter. Newsprint prices
were higher than a year ago and marginally higher than in the first quarter.
Magazine paper prices were similar to a year ago and also the previous quarter.
Market demand for coated fine paper in the second quarter was higher than a year
ago and similar to the previous quarter. Prices rose slightly during the period.
In Asia demand for coated fine paper was stronger than in the first quarter and
prices were stable.
Stora Enso Deliveries and Inventories
Paper and board deliveries totalled 3 578 000 tonnes, which is 41 000 tonnes less
than the previous quarter's 3 619 000 tonnes. Production decreased by
175 000 tonnes from the previous quarter's 3 751 000 tonnes to 3 576 000 tonnes
due to divestment of Grycksbo Mill, maintenance stoppages, a slowing in orders,
especially in coated magazine paper, and the illegal strike at the Finnish Mills.
Paper and board inventories decreased by 2 000 tonnes in the second quarter.
Deliveries of wood products totalled 1 746 000 m3, which was 183 000 m3 more than
the previous quarter's 1 563 000 m3. Wood product inventories decreased by
74 000 m3 in the second quarter.
Key Figures
Q1Q2/ Q1Q2/
EUR million 2004 2005 055) 06 Q2/055) Q1/06 Q2/06
Sales 12 395.8 13 187.5 6 332.2 7 224.0 3 187.3 3 607.7 3 616.3
EBITDA1)2) 1 508.4 1 487.4 687.2 914.5 298.4 463.3 451.2
Operating
profit2)4) 426.7 357.5 130.4 376.3 17.7 194.1 182.2
Non-recurring
items (operatio
nal) 369.7 -451.4 -12.0 -16.5 -12.0 -23.2 6.7
Operating
margin2)4), % 3.4 2.7 2.1 5.2 0.6 5.4 5.0
Operating
profit4) 796.4 -93.9 118.4 359.8 5.7 170.9 188.9
Net financial
items6) -106.0 -151.6 -77.7 -34.0 -34.6 115.2 -149.2
Profit before
tax and
minority
interests2)4) 359.6 273.1 83.7 264.1 0.1 210.9 53.2
Profit before
tax and
minority
interests4) 729.3 -178.3 71.7 377.6 -11.9 317.7 59.9
Net profit for
the period4) 747.8 -126.3 51.4 267.3 -8.6 226.4 40.9
EPS2), Basic,
EUR 0.25 0.28 0.07 0.25 0.00 0.20 0.05
EPS, Basic, EUR 0.89 -0.16 0.06 0.33 -0.01 0.29 0.05
CEPS2)3), EUR 1.67 1.70 0.76 0.93 0.35 0.54 0.39
ROCE2), % 3.0 3.1 2.4 6.3 0.6 6.5 6.1
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
4) The comparative figures exclude goodwill amortisation of EUR 90.3 million for
2004
5) The impact of the 7-week labour dispute in Finland in 2005 distorts comparison
of the year-on-year figures
6) See separate table Net Financial Items below
January-June 2006 Results (compared with the same period in 2005)
The impact of the 7-week labour dispute in Finland in 2005 distorts comparison of
the year-on-year figures.
Sales at EUR 7 224.0 million were 14.1% higher than in the first half of 2005,
mainly due to the impact of the Schneidersöhne acquisition, increased prices,
especially in newsprint, and increased deliveries in Fine Paper and Packaging
Boards.
Operating profit excluding non-recurring items increased by EUR 245.9 million to
EUR 376.3 million and was higher in all segments, although the impact of the
labour dispute in Finland in 2005 distorts the comparison.
The standstill at Port Hawkesbury Mill in Canada burdened operating profit by
approximately EUR 30 million of potential lost profit. The mill remains at a
standstill until a new energy agreement has been reached, despite approval of the
new labour contract.
In general, the price increases achieved since the start of the year have broadly
offset cost increases, so the improvement in profit for the first six months in
2006 is largely due to the impact of the Profit 2007 programme (adjusted by
approximately EUR 150 million for the impact of the 2005 labour dispute).
Profit before taxes and minority interests excluding non-recurring items increased
by EUR 180.4 million to EUR 264.1 million, and earnings per share excluding
non-recurring items increased by EUR 0.18 to EUR 0.25. Earnings per share
including non-recurring items were EUR 0.33 (EUR 0.06).
Second Quarter Results (compared with Q1/2006)
Sales at EUR 3 616.3 million were similar to the previous quarter's
EUR 3 607.7 million. Deliveries decreased in Fine Paper due to the sale of
Grycksbo Mill, and were unchanged in Publication Paper and Packaging Boards.
Operating profit excluding non-recurring items decreased by 6.1% to
EUR 182.2 (EUR 194.1) million, which is 5.0% of sales. The main reasons for the
decrease in profitability were a slight reduction in deliveries, especially in
coated magazine paper, the illegal strike at the Finnish mills in May
(EUR -9 million impact) and slightly higher maintenance-related stoppages.
Operating profit decreased in all product segments except in Wood Products.
The standstill at Port Hawkesbury Mill in Canada continued and approximately
EUR 15 million of potential profit was lost in the quarter. The mill remains
at a standstill until a new energy agreement has been reached, despite approval
of the new labour contract. Weakening of the US dollar did not have any material
impact on Group operating profit.
Operating profit includes a positive non-cash effect of EUR 17.6 million from the
fair valuation of share-based compensation. It is reported under other operations.
There were two unrelated non-recurring items with a net impact of EUR 6.7 million
on operating profit: EUR -11.0 million related to the signing of the agreement to
divest Pankakoski Mill in Finland as part of the previously announced Asset
Performance Review and EUR 17.7 million due to changes in Stora Enso's Finnish
unemployment insurance provisions. The divestment of Celbi Mill is expected to be
completed during the third quarter.
The share of associated company results amounted to EUR 20.2 (EUR 31.6) million;
the main contribution was from the forest-holding associates in Sweden and
Finland.
Net Financial Items
EUR million Q2/2005 Q1/2006 Q2/2006
Interest income, deposits 5.7 4.8 5.0
Interest expenses, borrowings -58.9 -66.5 -70.1
Interest rate swaps (incl. TRS
interest) 10.5 17.5 5.4
Capitalised interest 2.5 - -
Net Interest Expense -40.2 -44.2 -59.7
Foreign Exchange Gains and Losses 11.2 -7.0 -11.1
Other Financial Items, of which -5.6 166.4 -78.4
Capital gains, listed shares 4.9 136.7 -
Unrealised fair valuation of option
hedges (TRS) -5.8 41.7 -61.2
Unrealised fair valuation of other
financial items -7.1 -8.9 -10.7
Other items 2.4 -3.1 -6.5
Net Financial Items Total -34.6 115.2 -149.2
Stora Enso utilises Total Return Swaps (TRS) to partially hedge the exposure to
changes in the share price of synthetic options granted under the option
programmes for Management, which are settled with cash payments. While these TRS
instruments allow the Group to partially stabilise the future cash flows related
to the settlement of outstanding synthetic options, they expose the Group to
certain market risks. The TRS instruments do not qualify for hedge accounting;
therefore periodic changes to their fair value are recorded in the income
statement.
Net financial items were EUR -149.2 (positive EUR 115.2 including a non-recurring
capital gain of EUR 130.0 million) million. Net interest increased to
EUR -59.7 (EUR -44.2) million. The increase was mainly due to the higher interest
rates in the net debt portfolio (EUR 4.0 million impact) and the interest rate
swap income of EUR 8.6 million in the previous quarter related to the hedges for
the employee option programmes (Total Return Swaps, "TRS").
Net foreign exchange losses on borrowings, currency derivatives and bank accounts
were EUR 11.1 (EUR 7.0) million.
Other financial items decreased to EUR -78.4 million (positive EUR 166.4 million
including a non-recurring capital gain of EUR 130.0 million), mainly due to EUR
-71.9 (positive EUR 32.8) million of unrealised changes in fair values of
financial instruments, including TRS. The change in TRS fair value is closely
related to the price of Stora Enso R shares. This and other unrealised fair value
changes are non-cash items.
Profit before tax amounted to EUR 53.2 (EUR 210.9) million excluding non-recurring
items, the difference is due mainly to unrealised fair valuation items (non-cash)
in net financial items (negative EUR 71.9 million in the second quarter vs.
positive EUR 32.8 million in the first quarter).
Net taxes totalled EUR -19.0 (EUR -91.3) million, leaving a net profit for the
quarter of EUR 40.9 (EUR 226.4) million. The cumulative tax-rate for the first six
months was 29.2%.
The profit attributable to minority shareholders was EUR 2.3 (EUR 1.4) million,
leaving a profit of EUR 38.6 million attributable to Company shareholders.
Earnings per share were EUR 0.05 (EUR 0.20) excluding non-recurring items.
Earnings per share including non-recurring items were EUR 0.05 (EUR 0.29). Cash
earnings per share were EUR 0.39 (EUR 0.54) excluding non-recurring items.
Earnings per share were impacted by EUR -0.05 due to non-cash fair valuations,
of which EUR 0.02 came from the fair valuation of share-based compensation and
EUR -0.07 from unrealised changes in fair values of financial instruments.
The return on capital employed was 6.1% (6.5%) excluding non-recurring items.
Capital employed was EUR 11 786.5 million on 30 June 2006, a net decrease of EUR
165.0 million. Capital employed decreased mainly due to low capital expenditure,
translation differences and the sale of Grycksbo Mill. Operating working capital
was unchanged.
Capital Structure
EUR million 31 Dec 05 30 Jun 05 31 Mar 06 30 Jun 06
Fixed assets 11 616.8 11 146.3 11 454.3 11 200.6
Operative working capital 2 333.0 2 151.2 2 509.6 2 537.0
Long-term interest-free
items, net -571.9 -653.9 -676.7 -657.0
Operating Capital Total 13 377.9 12 643.6 13 287.2 13 080.6
Net tax liabilities -1 274.8 -1 370.6 -1 335.7 -1 294.1
Capital Employed 12 103.1 11 273.0 11 951.5 11 786.5
Associated companies 719.9 644.1 754.7 762.2
Total 12 823.0 11 917.1 12 706.2 12 548.7
Shareholders equity 7 645.3 7 483.3 7 497.6 7 529.6
Minority interest 93.6 94.1 93.0 91.6
Net interest-bearing
liabilities 5 084.1 4 339.7 5 115.6 4 927.5
Financing Total 12 823.0 11 917.1 12 706.2 12 548.7
Financing
Cash flow from operations was EUR 406.9 (EUR 288.6) million and cash flow after
investing activities EUR 299.6 (EUR 120.9) million.
At the end of the period, interest-bearing net liabilities were
EUR 4 927.5 million, a decrease of EUR 188.1 million due to strong cash flow and
translation differences. Unutilised credit facilities and cash and cash-equivalent
reserves totalled EUR 2.0 billion.
Shareholders' equity amounted to EUR 7 529.6 million or EUR 9.55 (EUR 9.51) per
share, compared with the market capitalisation on the Helsinki Stock Exchange on
30 June 2006 of EUR 8.6 billion.
The debt/equity ratio at 30 June 2006 was 0.65 (0.68). The currency effect on
equity was EUR -3.1 million net of the hedging of equity translation risks.
Cash Flow
EUR million 2005 Q2/05 Q1/06 Q2/06
Operating profit -93.9 5.7 170.9 188.9
Adjustments 1 439.4 287.6 307.6 249.6
Change in working capital -288.5 82.5 -189.9 -31.6
Cash Flow from Operations 1 057.0 375.8 288.6 406.9
Capital Expenditure -1 145.3 -251.9 -167.7 -107.3
Cash Flow after Investing
Activities -88.3 123.9 120.9 299.6
Capital Expenditure for the first half of 2006
Capital expenditure for the first half of 2006 totalled EUR 275.0 million. The
Group maintains its capital expenditure target for 2006 of EUR 800 million, which
would be less than depreciation for the year that is estimated at approximately
EUR 1.1 billion.
The main projects during the first six months were the new boiler at Hylte Mill
(EUR 19.8 million), the Skoghall Energy 2005 project (EUR 17.2 million), the
completion of the new paper machine 12 at Kvarnsveden Mill (EUR 16.0 million),
the plantation project at Guangxi, China (EUR 13.0 million) and rebuilding paper
machine 64 at Whiting Mill (EUR 10.8 million).
Second Quarter Events
April
Stora Enso's subsidiary Corenso United Oy Ltd signed an agreement with Foshan
Huaxin Packaging Co., Ltd. to purchase the assets of its core manufacturing plant
in Nanhai, Foshan in Guangdong Province. Corenso will relocate the production to a
new core manufacturing plant with an annual capacity of 20 000 tonnes in Sanshui,
Foshan, which will start production in 2007. The transaction was completed during
the second quarter of 2006.
Stora Enso signed an agreement with Shandong Huatai Paper to form an equity
joint-venture company in publication paper. The total investment is estimated to
be approximately USD 100 million (EUR 83 million) of which Stora Enso's share is
60%. The joint venture's paper machine at Dongying in Shandong Province, with a
planned annual capacity of up to 200 000 tonnes, is expected to start up in late
2007, subject to the issuing of permits. Its output will be suitable for the
growing SC paper market in China.
Stora Enso offered to sell for cash additional notes due 2016 that are fully
fungible with the new notes offered in the Exchange Offer launched in March 2006.
The maturity of the USD 207 938 000 additional 10-year notes, which pay a coupon
of 6.404%, is 15 April 2016. The additional notes and the new notes have an
aggregate principal amount of USD 507 928 000. The Group also offered to sell for
cash 30-year notes in a separate tranche. This 30-year issue was upsized from
USD 250 000 000 to USD 300 000 000 due to strong demand. The maturity of these
notes, which pay a coupon of 7.250%, is 15 April 2036.
May
There was a two-day illegal strike by the Finnish Paper Workers' Union throughout
the Finnish paper industry in protest against personnel reductions. All Stora
Enso's Finnish pulp, paper and board mills except Pankakoski Mill were shut down
due to the strike, which cost Stora Enso about EUR 9 million in lost operating
profit, including shutting down and starting up, and some 33 000 tonnes of lost
production.
Stora Enso decided to build its third corrugated packaging plant in Russia, at
Lukhovitsy, some 130 km southeast of Moscow. The annual production capacity of the
plant, which will employ some 175 people, will be 150 million m2 of corrugated
board. The capital expenditure is estimated at EUR 54 million. Construction of the
plant will begin in September 2006, with production starting up in the first
quarter of 2008.
June
Stora Enso signed an agreement to sell Celulose Beira Industrial (Celbi) SA, its
main asset being Celbi Pulp Mill in Portugal, to Altri, a Portuguese company with
steel, pulp and paper operations. The sales price of Celbi's equity is
EUR 428 million and the company has no debt. The Group will record a capital gain
of approximately EUR 170 million on completion of the sale. The transaction is
expected to be completed in the third quarter of 2006.
Stora Enso signed a new loan agreement with International Finance Corporation
(IFC) increasing its loan facility to USD 300 million. The loan will be used to
finance Stora Enso's current operations and future investments in China.
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.
Coincident with these investigations, Stora Enso has been named in a number of
class action lawsuits filed in the USA.
Following the 2004 inspections, on 5 April 2006 Stora Enso received from the
Finnish Competition Authority a request for a response concerning alleged price
collaboration and exchange of information between forest companies in connection
with the purchasing of timber in Finland from 1997 to 2004. Stora Enso has
investigated the matter and gave its response by 22 June 2006 as requested.
No provision has been made in Stora Enso's accounting for the above-mentioned
investigations and lawsuits.
Share Capital
The Annual General Meeting (AGM) of Stora Enso Oyj on 21 March 2006 authorised
the Board to repurchase and dispose of not more than 17 700 000 A shares and
60 100 000 R shares in the Company. There were no repurchases during the second
quarter.
During the quarter a total of 401 A shares were converted into R shares. The
latest conversion was recorded in the Finnish Trade Register on 15 June 2006.
During the quarter the Company allocated 5 996 repurchased R shares under the
terms of the Stora Enso North America Option Plan.
On 30 June 2006 Stora Enso had 178 105 067 A shares and 611 433 432 R shares in
issue, of which the Company held no A shares and 956 598 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 21 July Stora Enso signed an agreement to sell its Pankakoski Mill in Finland
to an international group of investors led by Dr Dermot Smurfit and including
Lansdowne Capital Limited. The debt-free sales price is EUR 20 million, subject to
closing date adjustments, and the Group's interest-bearing net liabilities will
decrease by the same amount. The Group has recorded a capital loss of
EUR 11.0 million as a provision in its second quarter 2006 results.
Profit 2007 and Asset Performance Review (APR) Programmes
Stora Enso's Profit 2007 profit improvement programme is proceeding ahead of
schedule and the target of an improvement of EUR 300 million in annual pre-tax
profit from mid 2007 onwards is expected to be exceeded.
The APR process is proceeding according to plan and the mills placed under
scrutiny are being evaluated with reference to their financial performance and
strategic fit within the Group. Decisions about the future of the mills under
scrutiny will be announced no later than in conjunction with the third quarter
results.
Near-term Outlook
In Europe the gradually improving economic conditions and advertising expenditure
are expected to support the publication paper market in a positive way. Good
market demand for fine paper is anticipated in the third quarter. The market for
packaging boards is expected to remain stable. In wood products the outlook for
the construction and joinery industries, the main market segments, remains stable
in all major markets except the USA, where a slowdown in housing starts is
predicted.
In North America modest market demand is anticipated in newsprint and coated
magazine paper. The market for uncoated magazine paper is forecast to improve
somewhat in the third quarter. The coated fine paper market is expected to remain
good.
The general price outlook is stable. Price increases have been announced in Europe
for uncoated fine paper and in North America for coated fine paper reels. Some
further price increases for sawn goods are forecast.
Whilst the outlook for the Group's products is generally positive, the trend
towards higher energy prices and interest rates, and concerns over recent
geopolitical events may create a more unpredictable operating environment for the
Group going forward.
Port Hawkesbury Mill in Canada is expected to remain at a standstill until the
Group reaches a new agreement with the local energy company.
This report is unaudited.
Helsinki, 26 July 2006
Stora Enso Oyj
Board of Directors
Segments
Publication Paper
Change
EUR % Q2/
million 2005 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1
Sales 4 675.9 1 104.4 1 125.3 1 166.0 1 280.2 1 171.0 1 145.2 -2.2
Operating
profit* 193.3 21.6 31.5 67.9 72.3 70.3 55.3 -21.3
% of sales 4.1 2.0 2.8 5.8 5.6 6.0 4.8
ROOC, %** 4.4 2.0 2.8 5.9 6.4 6.3 5.1
Deliveries,
1 000 t 7 008 1 685 1 708 1 734 1 881 1 666 1 662 -0.2
Production,
1 000 t 7 087 1 759 1 587 1 849 1 892 1 717 1 674 -2.5
* Excluding non-recurring items and goodwill amortisation ** ROOC = 100% x
Operating profit/Operating capital
Publication paper sales were EUR 1 145.2 million, down 2% on the previous quarter
due to the weaker US dollar and lower coated magazine paper sales. Operating
profit was EUR 55.3 million, down 21% on the previous quarter mainly due to
unfavourable currency trends, the illegal strike in Finland and somewhat greater
maintenance during the quarter. Profits continued to be burdened by the ongoing
standstill at Port Hawkesbury Mill in Canada. The mill remains at a standstill
until a new energy agreement has been reached, despite approval of the new labour
contract.
In Europe demand for uncoated magazine paper was considerably stronger than a year
ago, whereas demand for newsprint was slightly stronger and demand for coated
magazine paper more or less unchanged. Market demand was stronger than in the
previous quarter in newsprint but weaker in all magazine paper grades. Producer
inventories increased; customer inventories were low. Prices were higher than a
year ago, especially in newsprint, but similar to the previous quarter in all
grades.
In North America market demand for all publication paper grades was weaker than
a year earlier but virtually unchanged on the previous quarter. Uncoated magazine
paper suffered from supply shortages. Inventories were stable. Prices were higher
than a year ago in newsprint, but unchanged in uncoated and coated magazine paper.
Prices for all publication paper grades were similar to the previous quarter.
Fine Paper
Change
% Q2/
EUR million 2005 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1
Sales 2 690.3 708.7 618.3 625.4 737.9 776.3 738.9 -4.8
Operating
profit* 62.2 48.1 -13.6 -1.2 28.9 52.7 46.3 -12.1
% of sales 2.3 6.8 -2.2 -0.2 3.9 6.8 6.3
ROOC, %** 2.2 6.8 -1.9 -0.2 4.2 7.6 6.7
Deliveries,
1000 t 3 521 960 808 811 942 994 945 -4.9
Production,
1000 t 3 554 943 715 914 982 1 029 944 -8.3
* Excluding non-recurring items and goodwill amortisation ** ROOC = 100% x
Operating profit/Operating capital
Fine paper sales were EUR 738.9 million, down 5% on the previous quarter due to
the sale of Grycksbo Mill in Sweden. Operating profit was EUR 46.3 million, down
12% on the previous quarter due to maintenance standstills and the illegal strike
in Finland.
Demand in the European fine paper market was stronger than a year ago but weaker
than in the previous quarter. Stora Enso's shipments were lower than in the first
quarter following the Grycksbo Mill divestment. Uncoated fine paper prices
increased slightly, whereas coated fine paper prices were stable. Inventories were
normal at the end of the quarter.
In North America demand for coated fine paper was good. The Group's deliveries
outpaced the market growth in North America. Market demand during the second
quarter was similar to the previous quarter and stronger than a year earlier.
Inventories were normal. Coated fine paper prices increased slightly.
In Asia demand for coated fine paper was stronger than in the first quarter and
prices were stable.
Merchants
Sales were EUR 452.6 million, down 9% on the previous quarter mainly due to
seasonally lower volumes. Operating profit was EUR 2.9 million, down 70% on the
previous quarter due to lower volumes and margins, start-up costs in new countries
and some further restructuring costs from the ongoing programme. Integration of
the recent acquisitions is on track and the expected synergies are being achieved.
Packaging Boards
Change
% Q2/
EUR million 2005 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1
Sales 3 190.2 794.5 768.2 788.7 838.8 869.0 881.8 1.5
Operating
profit* 220.0 72.0 11.9 73.5 62.6 99.5 70.8 -28.8
% of sales 6.9 9.1 1.5 9.3 7.5 11.4 8.0
ROOC, %** 7.3 9.3 1.5 9.6 8.3 13.4 9.6
Deliveries,
1000 t 3 621 929 873 890 929 959 971 1.3
Production,
1000 t 3 678 1 002 715 1 009 952 1 005 958 -4.7
* Excluding non-recurring items and goodwill amortisation ** ROOC = 100% x
Operating profit/Operating capital
Packaging board sales were EUR 881.8 million, up slightly on the previous quarter
due to higher sales volumes. Operating profit was EUR 70.8 million, down 29% on
the previous quarter mainly due to lower production volumes, higher fixed costs
and the illegal strike in Finland.
Market demand was unchanged on the previous quarter and higher than a year ago.
Some price increases were implemented, mainly in industrial packaging boards and
US dollar markets.
Wood Products
Change
% Q2/
EUR million 2005 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1
Sales 1 588.3 366.9 433.7 398.0 389.7 377.1 437.8 16.1
Operating
profit* -3.1 -4.0 9.9 -1.8 -7.2 3.8 14.9 n/m
% of sales -0.2 -1.1 2.3 -0.5 -1.8 1.0 3.4
ROOC, %** -0.5 -2.3 5.5 -1.0 -4.2 2.3 8.8
Deliveries,
1000 m3 6 741 1 541 1 855 1 639 1 706 1 563 1 746 11.7
* Excluding non-recurring items and goodwill amortisation **ROOC = 100% x
Operating profit/Operating capital
Wood product sales were EUR 437.8 million, up 16% on the previous quarter due to
the seasonal variation in production and invoicing volumes. Operating profit was
EUR 14.9 million, up EUR 11.1 million on the previous quarter mainly due to cost
savings and higher sales prices that compensated for higher raw material costs.
Demand was satisfactory in Europe, Asia, North Africa and the Middle East due to
seasonal strength in building activity. Reduced raw material supplies allowed
producers to increase prices. In Japan the seasonal surge in construction kept
demand and prices stable or rising, but continuing currency weakness offset some
of the price increases. In the USA prices decreased as housing starts declined.
Wood Supply
Deliveries to the Group's mills in Finland, Sweden, the Baltic States, Russia and
Continental Europe totalled 10.4 million m3, down 3% on the previous quarter
mainly due the illegal strike at the Finnish mills in May and seasonal factors at
Nordic mills.
Short-fibre stocks remained stable. Coniferous pulpwood stocks decreased, but
improvements in market supplies in Finland and Sweden are encouraging. Wood supply
improved slightly in Continental Europe, but remained tight in Estonia.
Financials
Key Ratios
Q1/05 Q2/05 Q3/05 Q4/05 2005 Q1/06 Q2/06
Earnings per share (basic)
, EUR 0.07 -0.01 0.08 -0.31 -0.16 0.29 0.05
Earnings per share excl.
non-recurring items, EUR 0.07 0.00 0.08 0.13 0.28 0.20 0.05
Cash earnings per share
(CEPS), EUR 0.41 0.35 0.44 0.42 1.62 0.63 0.39
CEPS excl. non-
recurring items, EUR 0.41 0.35 0.44 0.50 1.70 0.54 0.39
Return on capital employed
(ROCE), % 4.1 0.2 3.7 -10.7 -0.8 5.7 6.4
ROCE excl. non-
recurring items, % 4.1 0.6 3.7 4.1 3.1 6.5 6.1
Return on equity (ROE), % 3.0 -0.4 3.5 -12.6 -1.6 11.8 2.1
Debt/equity ratio 0.51 0.58 0.62 0.66 0.66 0.68 0.65
Equity per share, EUR 9.46 9.46 9.67 9.70 9.70 9.51 9.55
Equity ratio, % 45.8 45.0 43.2 42.8 42.8 42.0 43.2
Operating profit, % of
sales 3.6 0.2 3.3 -8.8 -0.7 4.7 5.2
Operating profit excl. non
-recurring items, % of
sales 3.6 0.6 3.3 3.3 2.7 5.4 5.0
Capital expenditure, EUR
million 356.6 253.0 256.3 279.4 1 145.3 167.7 107.3
Capital expenditure, % of
sales 11.3 7.9 8.0 7.7 8.7 4.6 3.0
Capital employed, EUR
million 11 119 11 273 11 740 12 103 12 103 11 952 11 786
Interest-bearing net
liabilities, EUR million 3 928 4 340 4 699 5 084 5 084 5 116 4 928
Average number of
employees 44 870 45 670 46 418 46 166 46 166 46 056 46 051
Average number of shares
(million)
periodic 816.3 800.0 790.5 788.6 798.7 788.6 788.6
cumulative 816.3 808.1 802.1 798.7 798.7 788.6 788.6
cumulative, diluted 816.9 808.7 802.6 799.2 799.2 789.1 789.1
Key Exchange Rates for the Euro
One Euro is Closing Rate Average Rate
31 Dec 05 30 Jun 06 31 Dec 05 30 Jun 06
SEK 9.3885 9.2385 9.2824 9.3238
USD 1.1797 1.2713 1.2446 1.2299
GBP 0.6853 0.6921 0.6839 0.6873
CAD 1.3725 1.4132 1.5087 1.3997
Condensed Consolidated Income Statement
EUR million 2005 Q1Q2/2005 Q1Q2/2006
Sales 13 187.5 6 332.2 7 224.0
Other operating income 80.1 21.4 93.8
Materials and services -7 232.3 -3 473.2 -3 946.2
Freight and sales commissions -1 493.0 -714.1 -870.7
Personnel expenses -2 216.6 -1 074.0 -1 156.6
Other operating expenses -991.9 -405.1 -446.2
Depreciation and impairment -1 427.7 -568.8 -538.3
Operating Profit -93.9 118.4 359.8
Share of results of associated companies 67.2 31.0 51.8
Net financial items -151.6 -77.7 -34.0
Profit before Tax -178.3 71.7 377.6
Income tax 52.0 -20.3 -110.3
Net Profit for the Period -126.3 51.4 267.3
Attributable to:
Company shareholders -130.0 48.5 263.6
Minority interests 3.7 2.9 3.7
-126.3 51.4 267.3
Key Ratios
Basic earnings per share, EUR -0.16 0.06 0.33
Diluted earnings per share, EUR -0.16 0.06 0.33
Condensed Consolidated Cash Flow Statement
EUR million 2005 Q1Q2/2005 Q1Q2/2006
Cash Flow from Operating Activities
Operating profit -93.9 118.4 359.8
Adjustments 1 439.4 572.5 557.2
Change in net working capital -288.5 -153.5 -221.5
Change in short-term interest-bearing
receivables 9.8 82.2 54.8
Cash Flow Generated by Operations 1 066.8 619.6 750.3
Net financial items -108.2 -39.7 -127.2
Income taxes paid -209.0 -173.6 -72.6
Net Cash Provided by Operating Activities 749.6 406.3 550.5
Cash Flow from Investing Activities
Acquisitions of Group companies -323.9 -79.7 -8.5
Acquisitions of associated companies -55.7 -25.5 0.0
Proceeds from sale of fixed assets and
shares 104.9 17.1 214.2
Capital expenditure -1 145.3 -609.6 -275.0
Proceeds from the long-term receivables, net 98.3 -0.6 -17.0
Net Cash Used in Investing Activities -1 321.7 -698.3 -86.3
Cash Flow from Financing Activities
Change in long-term liabilities 671.3 792.5 124.4
Change in short-term borrowings 665.6 169.1 -275.7
Dividends paid -365.3 -365.3 -354.9
Minority dividends -0.3 -1.7 -1.1
Options exercised 0.0 0.0 -1.6
Purchase of own shares -344.6 -315.6 0.0
Net Cash Used in Financing Activities 626.7 279.0 -508.9
Net Increase in Cash and Cash Equivalents 54.6 -13.0 -44.7
Cash and bank in acquired companies 10.3 4.6 0.7
Cash and bank in sold companies 0.0 0.0 -0.7
Translation differences on cash holdings 12.2 5.1 -7.3
Cash and bank at the beginning of period 274.3 274.3 351.4
Cash and Cash Equivalents at Period End 351.4 271.0 299.4
Condensed Consolidated Balance Sheet
EUR million 31 Dec 05 30 Jun 05 30 Jun 06
Assets
Fixed and Other Long-term Assets
Fixed assets O 11 092.7 10 946.7 10 601.5
Biological assets O 76.8 65.0 77.8
Emission rights O 43.7 - 118.4
Investment in associated companies 719.9 644.1 762.2
Listed securities I 211.6 237.5 78.3
Unlisted shares O 403.6 134.6 402.9
Non-current loan receivables I 127.6 229.8 145.9
Deferred tax assets T 72.2 23.0 67.0
Other non-current assets O 269.4 243.2 264.3
13 017.5 12 523.9 12 518.3
Current Assets
Inventories O 2 150.5 1 816.0 2 145.8
Tax receivables T 108.5 167.8 109.7
Operative receivables O 2 157.9 1 834.8 2 257.1
Interest-bearing receivables I 309.2 218.1 309.2
Cash and cash equivalents I 351.4 271.0 299.4
5 077.5 4 307.7 5 121.2
Total Assets 18 095.0 16 831.6 17 639.5
Shareholders' Equity and Liabilities
Shareholders equity 7 645.3 7 483.3 7 529.6
Minority interests 93.6 94.1 91.6
Total Equity 7 738.9 7 577.4 7 621.2
Long-term Liabilities
Pension provisions O 494.0 665.1 502.4
Other provisions O 142.6 59.9 161.9
Deferred tax liabilities T 1 076.2 1 135.0 1 111.1
Long-term debt I 4 353.9 4 010.7 4 324.2
Long-term operative liabilities O 204.7 172.1 257.0
6 271.4 6 042.8 6 356.6
Current Liabilities
Current portion of long-term debt I 385.0 369.3 584.8
Interest-bearing liabilities I 1 345.0 916.1 851.3
Operative liabilities O 1 975.4 1 499.6 1 865.9
Tax liabilities T 379.3 426.4 359.7
4 084.7 3 211.4 3 661.7
Total Liabilities 10 356.1 9 254.2 10 018.3
Total Shareholders Equity and
Liabilities 18 095.0 16 831.6 17 639.5
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
Treasu-
Share Share ry Sha- Retained
EUR million Capital Premium res OCI CTA Earnings Total
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 - - -344.7 - - - -344.7
Cancellation of
Stora Enso Oyj
shares -41.2 -224.4 265.6 - - - 0.0
Dividend
(EUR 0.45 per share) - - - - - -365.3 -365.3
Buy-out of minority
interests - - - - - -43.2 -43.2
Net profit for the
period - - - - 0.2 -130.0 -129.8
OCI entries - - - 400.4 - - 400.4
Translation
adjustment - - - - 91.6 - 91.6
Balance at 31
December 2005 1 382.1 784.8 -259.9 468.0 -127.1 5 397.4 7 645.3
Cancellation of
Stora Enso Oyj
shares -39.9 -209.2 249.1 - - - 0.0
Dividend
(EUR 0.45 per share) - - - - - -354.9 -354.9
Options exercised - -1.7 0.2 - - - -1.5
Net profit for the
period - - - - 3.2 263.6 266.8
OCI entries - - - -11.6 - - -11.6
Translation
adjustment - - - - -14.5 - -14.5
Balance at 30 June
2006 1 342.2 573.9 -10.6 456.4 -138.4 5 306.1 7 529.6
CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income
Property, Plant and Equipment, Intangible Assets and Goodwill
EUR million 2005 Q1Q2/2005 Q1Q2/2006
Carrying value at 1 January 10 715.5 10 715.5 11 213.2
Acquisition of subsidiary companies 388.3 2.6 9.5
Additions 1 129.6 607.1 270.3
Additions in biological assets, IAS 41 15.7 2.5 4.7
Change in emission rights 43.7 - 74.7
Disposals -12.5 -5.1 -63.7
Depreciation, amortisation and impairment -1 427.7 -568.8 -538.3
Translation difference and other 360.6 257.9 -172.7
Balance Sheet Total 11 213.2 11 011.7 10 797.7
Acquisitions of Subsidiary Companies
Cash and cash equivalents 10.3 4.6 0.7
Working capital 171.4 13.3 -1.2
Operating fixed assets 274.3 2.6 2.9
Interest-bearing assets 0.0 0.0 0.0
Tax liabilities -59.8 1.6 0.3
Interest-bearing liabilities -274.6 -9.3 -0.6
Non-cash share exchange -5.0 0.0 0.0
Minority interests 93.3 66.9 -0.2
Fair value of net assets 209.9 79.7 1.9
Goodwill 114.0 0.0 6.6
Total Purchase Consideration 323.9 79.7 8.5
Borrowings
EUR million 2005 Q1Q2/2005 Q1Q2/2006
Non-current borrowings 4 353.9 4 010.7 4 324.2
Current borrowings 1 730.0 1 285.4 1 436.1
6 083.9 5 296.1 5 760.3
Carrying value at 1 January 4 027.6 4 027.6 6 083.9
Debt acquired with new subsidiaries 274.6 9.3 0.6
Debt disposed with sold
subsidiaries 0.0 0.0 -4.4
Proceeds from / payments of
borrowings (net) 1 336.9 961.6 -151.3
Translation difference and other 444.8 297.6 -168.5
Total Borrowings 6 083.9 5 296.1 5 760.3
Commitments and Contingencies
EUR million 31 Dec 05 30 Jun 05 30 Jun 06
On Own Behalf
Pledges given 1.1 1.2 1.1
Mortgages 212.8 142.9 207.8
On Behalf of Associated Companies
Mortgages 0.8 0.8 0.8
Guarantees 359.3 309.6 355.7
On Behalf of Others
Guarantees 13.7 8.3 10.8
Other Commitments, Own
Leasing commitments, in next
12 months 34.3 31.6 35.3
Leasing commitments, after next
12 months 148.0 152.2 141.2
Pension liabilities 0.7 1.5 0.5
Other commitments 97.6 97.0 85.8
Total 868.3 745.1 839.0
Pledges given 1.1 1.2 1.1
Mortgages 213.6 143.7 208.6
Guarantees 373.0 317.9 366.5
Leasing commitments 182.3 183.8 176.5
Pension liabilities 0.7 1.5 0.5
Other commitments 97.6 97.0 85.8
Total 868.3 745.1 839.0
Net Fair Values of Derivative Financial Instruments
EUR million 31 Dec 05 30 Jun 05 30 Jun 06
Positive Negative
Net Fair Net Fair Fair Fair Net Fair
Values Values Values Values Values
Interest rate swaps 88.1 129.9 51.6 -63.8 -12.2
Interest rate options -1.9 -0.6 1.0 -1.2 -0.2
Cross-currency swaps -6.5 -15.1 0.0 -2.4 -2.4
Forward contracts -30.5 -85.3 16.4 -1.5 14.9
FX options -5.7 -17.0 10.1 -2.0 8.1
Commodity contracts 129.6 126.9 198.9 -4.2 194.7
Equity swaps -1.8 -32.3 14.9 -36.5 -21.6
Total 171.3 106.5 292.9 -111.6 181.3
Nominal Values of Derivative Financial Instruments
EUR million 31 Dec 05 30 Jun 05 30 Jun 06
Interest Rate Derivatives
Interest rate swaps
Maturity under 1 year 620.1 617.7 100.0
Maturity 25 years 1 000.6 327.7 2 517.8
Maturity 610 years 1 738.3 1 525.8 2 318.8
3 359.0 2 471.2 4 936.6
Interest rate options 673.8 257.7 148.1
Total 4 032.8 2 728.9 5 084.7
Foreign Exchange Derivatives
Cross-currency swap agreements 72.3 109.3 62.6
Forward contracts 2 442.1 2 304.0 1 407.2
FX Options 1 071.3 1 001.1 1 036.1
Total 3 585.7 3 414.4 2 505.9
Commodity Derivatives
Commodity contracts 391.0 448.7 558.7
Total 391.0 448.7 558.7
Equity swaps
Equity swaps 408.5 407.4 399.4
Total 408.5 407.4 399.4
Sales by Segment
EUR million Q1/05 Q2/05 Q3/05 Q4/05 2005 Q1/06 Q2/06
Publication
Paper 1 104.4 1 125.3 1 166.0 1 280.2 4 675.9 1 171.0 1 145.2
Fine Paper 708.7 618.3 625.4 737.9 2 690.3 776.3 738.9
Merchants 182.1 217.4 295.2 478.5 1 173.2 496.3 452.6
Packaging Boards 794.5 768.2 788.7 838.8 3 190.2 869.0 881.8
Wood Products 366.9 433.7 398.0 389.7 1 588.3 377.1 437.8
Wood Supply 674.7 563.2 612.4 651.6 2 501.9 674.8 651.3
Other -686.4 -538.8 -666.5 -740.6 -2 632.3 -756.8 -691.3
Total Sales 3 144.9 3 187.3 3 219.2 3 636.1 13 187.5 3 607.7 3 616.3
Operating Profit by Segment excluding Non-recurring items
EUR million Q1/05 Q2/05 Q3/05 Q4/05 2005 Q1/06 Q2/06
Publication Paper 21.6 31.5 67.9 72.3 193.3 70.3 55.3
Fine Paper 48.1 -13.6 -1.2 28.9 62.2 52.7 46.3
Merchants 2.7 1.6 0.9 -1.9 3.3 9.6 2.9
Packaging Boards 72.0 11.9 73.5 62.6 220.0 99.5 70.8
Wood Products -4.0 9.9 -1.8 -7.2 -3.1 3.8 14.9
Wood Supply 3.1 -10.9 -0.3 -3.7 -11.8 8.9 1.3
Other -30.8 -12.7 -32.8 -30.1 -106.4 -50.7 -9.3
Operating Profit
excl. Non-
recurring Items 112.7 17.7 106.2 120.9 357.5 194.1 182.2
Non-recurring
items - -12.0 - -439.4 -451.4 -23.2 6.7
Operating Profit
(IFRS) 112.7 5.7 106.2 -318.5 -93.9 170.9 188.9
Net financial
items -43.1 -34.6 -25.0 -48.9 -151.6 115.2 -149.2
Associated
companies 14.0 17.0 11.8 24.4 67.2 31.6 20.2
Profit before
Tax and Minority
Interests 83.6 -11.9 93.0 -343.0 -178.3 317.7 59.9
Income tax
expense -23.6 3.3 -26.5 98.8 52.0 -91.3 -19.0
Net Profit 60.0 -8.6 66.5 -244.2 -126.3 226.4 40.9
Non-recurring Items by Segment
EUR million Q1/05 Q2/05 Q3/05 Q4/05 2005 Q1/06 Q2/06
Publication Paper - - - -201.6 -201.6 -2.9 4.4
Fine Paper - - - -40.8 -40.8 -22.0 3.8
Merchants - - - -7.9 -7.9 - -
Packaging Boards - - - -144.4 -144.4 - -5.5
Wood Products - -12.0 - -41.2 -53.2 1.7 1.2
Wood Supply - - - -3.5 -3.5 - 1.5
Other - - - - - - 1.3
Total Non
recurring Items - -12.0 - -439.4 -451.4 -23.2 6.7
Operating Profit by Segment
EUR million Q1/05 Q2/05 Q3/05 Q4/05 2005 Q1/06 Q2/06
Publication Paper 21.6 31.5 67.9 -129.3 -8.3 67.4 59.7
Fine Paper 48.1 -13.6 -1.2 -11.9 21.4 30.7 50.1
Merchants 2.7 1.6 0.9 -9.8 -4.6 9.6 2.9
Packaging Boards 72.0 11.9 73.5 -81.8 75.6 99.5 65.3
Wood Products -4.0 -2.1 -1.8 -48.4 -56.3 5.5 16.1
Wood Supply 3.1 -10.9 -0.3 -7.2 -15.3 8.9 2.8
Other -30.8 -12.7 -32.8 -30.1 -106.4 -50.7 -8.0
Operating Profit 112.7 5.7 106.2 -318.5 -93.9 170.9 188.9
Net financial
items -43.1 -34.6 -25.0 -48.9 -151.6 115.2 -149.2
Associated
companies 14.0 17.0 11.8 24.4 67.2 31.6 20.2
Profit before
Tax and Minority
Interests 83.6 -11.9 93.0 -343.0 -178.3 317.7 59.9
Income tax
expense -23.6 3.3 -26.5 98.8 52.0 -91.3 -19.0
Net Profit 60.0 -8.6 66.5 -244.2 -126.3 226.4 40.9
Stora Enso Shares
Closing Price Helsinki, EUR Stockholm, SEK New York, USD
A share R share A share R share ADRs
April 12.45 12.42 116.50 115.50 15.64
May 10.74 10.91 102.00 101.00 14.00
June 10.68 10.92 101.50 99.50 13.98
Trading Volume Helsinki Stockholm New York
A share R share A share R share ADRs
April 85 278 96 743 775 222 592 24 691 965 2 161 000
May 323 192 96 742 581 379 725 20 785 102 2 091 600
June 45 199 81 203 529 196 008 15 529 722 1 914 900
Total 453 669 274 689 885 798 325 61 006 789 6 167 500
www.storaenso.com
www.storaenso.com/investors
Publication dates for financial information
Interim Review for January - September 2006 26 October 2006
Results for 2006 7 February 2007
Interim Review for January - March 2007 26 April 2007
Interim Review for January - June 2007 26 July 2007
Interim Review for January - September 2007 25 October 2007
Annual General Meeting 29 March 2007
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.
For further information, please contact:
Jukka Härmälä, CEO, tel. +358 2046 21404
Hannu Ryöppönen, CFO, tel. +358 2046 21450
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial Communications,
tel. +358 40 763 8767
STORA ENSO OYJ
p.p. Jussi Siitonen Jukka Marttila
