Stora Enso reclassifies its equity components
STORA ENSO OYJ STOCK EXCHANGE RELEASE 5 February 2009 at 06.58 GMT
Stora Enso Oyj (parent company), due to an incorrect classification between restricted and distributable equity upon the cancellation of its own shares in the years 2001-2006, has reclassified EUR 1 512 million from its retained earnings to its share premium account. The reclassification has no impact on the total equity in the Parent Company or in the Group. The reclassification requirement was identified during the 2008 annual accounts reporting and closing process. The distributable reserves after this reclassification were sufficient to pay the dividends during the entire period, including year 2007. However, the significant downturn in the business outlook due to the global economic slowdown has resulted in impairments in the Group (as disclosed on 19 January 2009) and Parent Company accounts. The impairments, in combination with the EUR 1 512 million increase of restricted equity and corresponding decrease in distributable equity, have led to negative distributable equity in the Parent Company of approximately EUR 400 million. To re-balance the equity components and to be able to pay a return to Stora Enso's shareholders in line with its dividend policy in 2008, the Board of Directors of Stora Enso Oyj will propose to the Annual General Meeting (AGM) that EUR 2 042 million of restricted equity funds (share premium fund and reserve fund) be transferred to distributable equity (invested unrestricted equity fund) and that EUR 0.20 per share of capital from the share premium fund be distributed to the shareholders. If this proposal is approved by the AGM, the change is then subject to consent from Finnish National Board of Patents and Registration (pursuant to the provisions of Chapter 14 of the Finnish Companies Act). The payment is expected to be made during the third quarter of 2009. The proposed amount of EUR 0.20 per share, a reduction of about 50% from the past few years, is a balance between safeguarding the cash position of the Company and continuing to pay an annual return to shareholders. Parent Company Equity -------------------------------------------------------------------------------- | Reported | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | | Earlier, EUR | | | | | | | | | | million | | | | | | | | | -------------------------------------------------------------------------------- | Restricted | 7 | 7 | 7 | 6 713 | 6 | 5 | 5 | 5 | | Equity 1.1 | 496. | 235. | 143.7 | .1 | 364.6 | 918.1 | 669.0 | 669.0 | | | 0 | 3 | | | | | | | -------------------------------------------------------------------------------- | Restricted | 7 | 7 | 6 713 | 6 | 5 | 5 | 5 | 5 | | Equity 31.12 | 235. | 143. | .1 | 364.6 | 918.1 | 669.0 | 669.0 | 669.0 | | | 3 | 7 | | | | | | | -------------------------------------------------------------------------------- | Distributable | 1 | 3 | 3 | 4 | 4 | 3 | 4 | 2 | | Equity 1.1 | 306. | 155. | 087.0 | 737.8 | 560.1 | 876.0 | 534.3 | 660.3 | | | 7 | 7 | | | | | | | -------------------------------------------------------------------------------- | Distributable | 3 | 3 | 4 | 4 | 3 | 4 | 2 | 1 | | Equity 31.12 | 155. | 087. | 737.8 | 560.1 | 876.0 | 534.3 | 660.3 | 101.1 | | | 7 | 0 | | | | | | | -------------------------------------------------------------------------------- | Total Equity | 8 | 10 | 10 | 11 45 | 10 | 9 | 10 | 8 | | 1.1 | 802. | 391. | 230.7 | 0.9 | 924.7 | 794.1 | 203.3 | 329.3 | | | 7 | 0 | | | | | | | -------------------------------------------------------------------------------- | Total Equity | 10 | 10 | 11 45 | 10 | 9 | 10 | 8 | 6 | | 31.12 | 391. | 230. | 0.9 | 924.7 | 794.1 | 203.3 | 329.3 | 770.1 | | | 0 | 7 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Effect, EUR | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | | million | | | | | | | | | -------------------------------------------------------------------------------- | Restricted | - | 248.0 | 345.4 | 721.4 | 997.1 | 1 | 1 | 1 | | Equity 1.1 | | | | | | 262.8 | 511.9 | 511.9 | -------------------------------------------------------------------------------- | Restricted | 248.0 | 345.4 | 721.4 | 997.1 | 1 | 1 | 1 | 1 | | Equity 31.12 | | | | | 262.8 | 511.9 | 511.9 | 511.9 | -------------------------------------------------------------------------------- | Distributabl | - | -248. | -345. | -721. | -997. | -1 | -1 | -1 | | e Equity 1.1 | | 0 | 4 | 4 | 1 | 262.8 | 511.9 | 511.9 | -------------------------------------------------------------------------------- | Distributabl | -248. | -345. | -721. | -997. | -1 | -1 | -1 | -1 | | e Equity | 0 | 4 | 4 | 1 | 262.8 | 511.9 | 511.9 | 511.9 | | 31.12 | | | | | | | | | -------------------------------------------------------------------------------- | Total Equity | - | - | - | - | - | - | - | - | | 1.1 | | | | | | | | | -------------------------------------------------------------------------------- | Total Equity | - | - | - | - | - | - | - | - | | 31.12 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Reclassificat | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | | ion, EUR | | | | | | | | | | million | | | | | | | | | -------------------------------------------------------------------------------- | Restricted | 7 | 7 | 7 | 7 434 | 7 | 7 | 7 | 7 | | Equity 1.1 | 496. | 483.3 | 489.1 | .5 | 361.7 | 180.9 | 180.9 | 180.9 | | | 0 | | | | | | | | -------------------------------------------------------------------------------- | Restricted | 7 | 7 | 7 434 | 7 | 7 | 7 | 7 | 7 | | Equity 31.12 | 483. | 489.1 | .5 | 361.7 | 180.9 | 180.9 | 180.9 | 180.9 | | | 3 | | | | | | | | -------------------------------------------------------------------------------- | Distributable | 1 | 2 | 2 | 4 | 3 | 2 | 3 | 1 | | Equity 1.1 | 306. | 907.7 | 741.6 | 016.4 | 563.0 | 613.2 | 022.4 | 148.4 | | | 7 | | | | | | | | -------------------------------------------------------------------------------- | Distributable | 2 | 2 | 4 | 3 | 2 | 3 | 1 | -410. | | Equity 31.12 | 907. | 741.6 | 016.4 | 563.0 | 613.2 | 022.4 | 148.4 | 8 | | | 7 | | | | | | | | -------------------------------------------------------------------------------- | Total Equity | 8 | 10 | 10 | 11 45 | 10 | 9 | 10 | 8 | | 1.1 | 802. | 391.0 | 230.7 | 0.9 | 924.7 | 794.1 | 203.3 | 329.3 | | | 7 | | | | | | | | -------------------------------------------------------------------------------- | Total Equity | 10 | 10 | 11 45 | 10 | 9 | 10 | 8 | 6 | | 31.12 | 391. | 230.7 | 0.9 | 924.7 | 794.1 | 203.3 | 329.3 | 770.1 | | | 0 | | | | | | | | -------------------------------------------------------------------------------- For further information, please contact: Jouko Karvinen, CEO, tel. +358 2046 21410 Markus Rauramo, CFO, tel. +358 2046 21121 Keith Russell, Senior Vice President, Investor Relations, tel. +44 7775 788659 Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial Communications, tel. +358 2046 21242 www.storaenso.com www.storaenso.com/investors STORA ENSO OYJ Jari Suvanto Ulla Paajanen-Sainio