Facts & Figures. Stora Enso 2013

Facts & Figures Stora Enso 2013 2 3 4 6 8 10 14 15 Key figures Stora Enso in brief Divisions Map Board of Directors and Group Leadership Team Extrac...
Author: William Paul
14 downloads 1 Views 3MB Size
Facts & Figures Stora Enso 2013 2 3 4 6 8 10 14 15

Key figures Stora Enso in brief Divisions Map Board of Directors and Group Leadership Team Extract of the Consolidated Financial Statements Auditor’s Report Information for shareholders

Key figures

Stora Enso in brief Stora Enso is the global rethinker of the paper, biomaterials, packaging and wood products industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 28 000 people worldwide, and our sales in 2013 amounted to EUR 10.5 billion.

Key figures EUR million Sales Operational EBIT** Operating profit (IFRS) Profit before tax excl. NRI***

2013

2012*

10 544

10 815

578

630

34

701

350

317

-189

481

323

263

Net loss/profit for the period

-71

490

Capital expenditure

425

556

Operational ROCE, %

7.1

7.3

Loss/Profit before tax Net profit for the period excl. NRI***

Return on equity (ROE), %

-1.3

8.3

Debt/equity ratio

0.47

0.48

Paper and board deliveries, 1 000 tonnes

9 898

10 268

Corrugated packaging deliveries, million m2

1 086

1 097

Wood products deliveries, 1 000 m3

4 930

4 750

28 231

28 777

Average number of employees

Share information

2012*

0.40

0.33

-0.07

0.61

Cash earnings per share (CEPS) excl. NRI***, EUR

1.12

1.07

Cash earnings per share (CEPS), EUR

1.16

1.28

Earnings per share (EPS), EUR

Dividend per share****, EUR

0.30

0.30

Equity/share, EUR

6.61

7.32

Payout ratio, excluding NRI***, %

75.0

90.9

5 756

4 222

Total market capitalisation at 31 December, EUR million

Employees by country 2013

Paper and board capacity by country 2014

Finland 40% Sweden 26% Germany 13% China 3% Brazil 2% Other countries 16%

Finland 25% Sweden 19% Germany 8% Poland 7% Russia 4% Other Europe 16% China 17% Other countries 4%

Sales and operational EBIT margin

Chemical Pulp capacity by country 2014*

Finland 56% Sweden 22% Brazil 11% Uruguay 9% Poland 2% 2013

Earnings per share (EPS) excl. NRI***, EUR

Stora Enso’s annual production capacity is 5.4 million tonnes of chemical pulp, 11.7 million tonnes of paper and board, 1.3 billion square metres of corrugated packaging and 5.6 million cubic metres of sawn wood products, including 2.9 million cubic metres of value-added products. The Group is listed in Helsinki and Stockholm.

*Data for the comparative period have been restated following adoption of the revised IAS 19 Employee Benefits standard. **Operational EBIT comprises the operating profit excluding NRI and fair valuations of the segments and Stora Enso’s share of the operating profit excluding NRI and fair valuations of its equity accounted investments (EAI). Fair valuations include equity incentive schemes, synthetic options net of realised and open hedges, CO2 emission rights and valuations of biological assets.

2013

2012

Sales EUR 10 544 million Operational EBIT margin 5.5%

*Including Stora Enso's share of equity accounted investments

Sales EUR 10 815 million Operational EBIT margin 5.8%

Earnings and distribution per share

CO2 performance*

Excluding non-recurring items EUR

Million tonnes

1.5

kg/tonne

8

500

7

460

6

420

5

380

4

340

1.2

***NRI = Non-recurring items. These are exceptional transactions that are not related to normal business operations. The most common non-recurring items are capital gains, additional write-downs or reversals of write-downs, provisions for planned restructuring and penalties. Non-recurring items are normally disclosed individually if they exceed one cent per share.

0.9

****Board's proposal for dividend distribution.

0.6 0.3

300

3 09 Million tonnes

0.0 10 Earnings per share Dividend per share

2

Stora Enso Facts & Figures 2013

11

12

Board's proposal for dividend Cash earnings per share

13

10

11

12

13

kg/tonne

*Covering direct and indirect (purchased electricity and heat) fossil CO2 emissions from pulp, paper and board production facilities. Normalised figures are reported per unit sales production. Some of the figures have been recalculated from previous years due to changes in baseline and reporting errors.

Stora Enso Facts & Figures 2013

3

Divisions in brief Printing and Living Division

Biomaterials Division

Printing and Reading Business Area

Building and Living Business Area

Stora Enso Printing and Reading is a world-class responsible supplier of renewable paper solutions for print media and office use. Its customers – publishers, retailers, printing houses, merchants, converters and office suppliers among others – are served with products that best fit their purpose. The offering includes newsprint, book paper, super-calendered magazine paper, coated paper and office paper that are used for example in newspapers and supplements, books, magazines, brochures, notebooks, art books and an office environment.

Stora Enso Building and Living provides wood-based innovations and solutions for everyday living and housing needs. Its product range covers all areas of urban construction, from supporting structures to interior design and environmental construction. The further-processed products include massive wood elements and housing modules, wood components and pellets. A variety of sawn timber goods complete the selection. Building and Living serves public and private sector customers, such as construction companies, merchandisers and retailers.

The Business Area’s mission is to inspire the world with sustainable paper, as it believes in the power of paper in communication, learning and creative expression. Printing and Reading is continuously developing its products and service offering with innovative solutions such as lightweight papers that achieve greater material efficiency and lower environmental impact without compromising on printing quality.

Building and Living has more than twenty production units in Europe and operates globally, with its main markets in Europe, the Middle East and North Africa, and Asia Pacific. The products are made of renewable, high-quality European pine or spruce with 100% traceability. With carbon captured in the wood products, they offer a truly sustainable means of reducing climate change.

Stora Enso Biomaterials offers a variety of pulp grades to meet the demands of paper, board and tissue producers. Pulp made from renewable resources in a sustainable manner is an excellent raw material with many different end uses. When the new Montes del Plata Pulp Mill in Uruguay starts operations in 2014, Biomaterials will have an even wider product offering, including northern bleached softwood kraft and bleached hardwood kraft pulp (birch and eucalyptus), which are used for a variety of paper grades, packaging paperboards and tissue, as well as fluff pulp for hygiene applications and dissolving pulp for the textile industry.

Sales EUR 10 544 million

Stora Enso Renewable Packaging offers fibre-based packaging materials and innovative packaging solutions for consumer goods and industrial applications. Renewable Packaging operates throughout the value chain, from pulp production to production of materials and packaging, to recycling.

Packaging Solutions products include corrugated packaging for consumer and transport packages, containerboard, cores and coreboard, paper sacks, and sack and kraft paper. Renewable Packaging is expanding in growth markets such as China, India and Pakistan to meet the rising demand in these markets. Renewable Packaging will build an integrated board and pulp mill in Guangxi in southern China. Renewable Packaging production sites in Europe are located in Finland, Sweden, Spain and Eastern and Central Europe.

Geographical distribution of external sales and market share Printing and Reading

Operational EBIT EUR 578 million

Printing and Reading 40% Biomaterials 5% Building and Living 17% Renewable Packaging 30% Other 8%**

Biomaterials operates the Nordic stand-alone pulp mills Enocell and Sunila in Finland, and Skutskär in Sweden, as well as the joint ventures Veracel in Brazil and Montes del Plata in Uruguay with corresponding plantations. Biomaterials also runs the plantations in Rio Grande do Sul in Brazil, the trial plantations in Laos, and the Pulp Competence Centre and the Biorefinery in Europe.

Renewable Packaging Division

Consumer Board product range covers all major board categories and end-uses such as liquid packaging boards, cigarette boards, graphical boards and general packaging boards for packaging cosmetics and luxury products, chocolate and confectionery, pharmaceuticals and food.

External sales and operational EBIT* by segments

The mission of Biomaterials is to find new, innovative ways to utilise the valuable raw material wood, while simultaneously running existing pulp and by-product businesses as efficiently as possible, based on the needs of its customers.

Printing and Reading 6% Biomaterials 13% Building and Living 13% Renewable Packaging 55% Other 13%**

Europe

Latin America

Asia Pacific

Rest of the world

Geographical distribution (% of sales)

78

7

10

5

Market share %

16

6

2

Biomaterials Europe

Geographical distribution (% of sales)

66

Asia Pacific

Building and Living Geographical distribution (% of sales)

Europe

Asia Pacific

North Africa

Middle East

56

21

8

15

Market share: Europe 4%, worldwide 2%.

Rest of the world

25

General market share not applicable due to nature of the business.

9

Renewable Packaging Geographical distribution (% of sales)

Europe

Asia Pacific

Rest of the world

78

14

8

General market share not applicable due to nature of product portfolio.

*See operational EBIT explanation on page 2 **The segment Other includes the Nordic forest equity accounted investments, Stora Enso’s shareholding in Pohjolan Voima, operations supplying wood to the Nordic mills and Group shared services and administration.

4

Stora Enso Facts & Figures 2013

Stora Enso Facts & Figures 2013

5

Employees and production facilities Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. The Group has employees in more than 35 countries worldwide. Stora Enso focuses on growth markets in Asia and Latin America through fibre-based packaging, plantation-based pulp, innovations in biomaterials, competitive paper grades and sustainable building solutions.

USA 186 employees

Renewable Packaging Wisconsin Rapids

Europe Most of Stora Enso’s sales, production capacity and personnel are in Europe, where the Group is a leading producer of pulp, paper and board. Eastern and Central Europe are important areas for the manufacturing of corrugated packaging and wood products. Stora Enso has faced structural issues in Europe due to overcapacity in paper production. As a result, the Group is investing selectively in its mills with long-term potential in order to secure a competitive cost structure and renewable materials.

France

Netherlands

Germany

468 employees

101 employees

2 239 employees

Printing and Reading Corbehem

Building and Living Amsterdam

Printing and Reading Kabel Maxau Sachsen Uetersen

Renewable Renewable Packaging Packaging Saint Seurin sur Edam l’Isle Austria Spain 289 employees

Renewable Packaging Barcelona Tolosa

Brazil Latin America has become a cornerstone of Stora Enso’s strategy of low-cost pulp from tree plantations. In Brazil, Stora Enso owns Veracel Celulose through a joint venture with the Brazilian company Fibria. Veracel Celulose produces 1.1 million tonnes of eucalyptus pulp annually. The company has 211 000 hectares of land, of which 90 000 hectares is planted with eucalyptus. In addition, Stora Enso owns Arapoti magazine paper mill jointly with the Chilean company Arauco. In the state of Rio Grande do Sul, Stora Enso owns 43 000 hectares of land, around half of which is planted with eucalyptus. 326 employees

Printing and Reading Arapoti Biomaterials Rio Grande do Sul Veracel

6

Stora Enso Facts & Figures 2013

Belgium

945 employees

Building and Living Bad St. Leonhard Brand Sollenau Ybbs

Sweden

Finland

Estonia

Latvia

Czech Republic

Hungary

5 283 employees

6 951 employees

632 employees

263 employees

728 employees

117 employees

Building and Living Imavere Näpi

Building and Living Launkalne

Building and Living Planá Zdírec

Renewable Packaging Komárom

Printing and Reading Hylte Kvarnsveden Nymölla Biomaterials Skutskär Building and Living Ala Gruvön

Renewable Packaging Bäckefors Fors Forshaga Jönköping Mohed Skene Skoghall Vikingstad

Printing and Reading Anjala Oulu Varkaus Veitsiluoto Biomaterials Enocell Sunila Building and Living Hartola Honkalahti Kitee Pälkäne Uimaharju Varkaus

Renewable Packaging Heinola Imatra Ingerois Kristiinankaupunki Lahti Loviisa Pori

Renewable Packaging Tallinn

Renewable Packaging Riga Lithuania 235 employees

Building and Living Alytus Renewable Packaging Kaunas

Printing and Reading Langerbrugge

Renewable Packaging Krefeld

Building and Living Murow Renewable Packaging Łódz Mosina Ostrołęka Tychy

1 129 employees

Building and Living Impilahti Nebolchi Renewable Packaging Arzamas Balabanovo Lukhovitsy

China 4 811 employees

Printing and Reading Dawang Suzhou

Great Britain 149 employees

Asia Uruguay Stora Enso and Arauco’s joint venture company Montes del Plata’s pulp mill in Punta Pereira is expected to begin the mill start up process in early 2014. Once completed, the new mill will produce 1.3 million tonnes of pulp per year. Employees in Uruguay are working for the joint venture. The eucalyptus pulpwood will be sourced essentially from plantations on Montes del Plata’s own approximately 190 000 hectares of land. Biomaterials Montes del Plata

1 926 employees

Building and Living Pfarrkirchen

Renewable Packaging Bolton

572 employees

Russia Poland

The rapidly expanding Asian paper and paperboard market offers huge demand for Stora Enso’s products. The Group is building a consumer board machine at Beihai city in Guangxi, southern China scheduled to be operational in the beginning of 2016. After the board mill is completed, the Group will construct a pulp mill at the same site. When ready, the mill site will include a 450 000 tonnes per year state-of-the-art paperboard machine and pulp capacity of 700 000 tonnes per year, including necessary energy plant and auxiliary facilities. The board and pulp mills will be selfsufficiently integrated with wood supply from 90 000 hectares of self-managed plantations. The Group’s other operations in China include a 245 000 tonnes per year coated fine paper mill in Suzhou, a 170 000 tonnes per year uncoated magazine paper mill at Dawang, two core factories and majority shareholding in Inpac International, a packaging company with production operations in China and India, and service operations in Korea. The Group also has trial plantations in Laos. In May 2013, Stora Enso and Packages Ltd. of Pakistan completed the process of establishing a joint venture called Bulleh Shah Packaging (Private) Limited. Stora Enso’s initial shareholding is 35%. The joint venture includes the packaging operations of the Kasur mill and Karachi plant.

Renewable Packaging Dongguan Foshan Guangxi Hangzhou Qian’an Laos 90 employees

Biomaterials Trial plantation India 397 employees

Renewable Packaging Chennai Pakistan

Renewable Packaging Kasur Karachi

Stora Enso Facts & Figures 2013

7

Board of Directors

Group Leadership Team

Juha Rantanen Gunnar Brock

Hans Stråberg Matti Vuoria

Elisabeth Fleuriot

Karl-Henrik Sundström

Mats Nordlander

Jouko Karvinen

Lars Häggström

First Lastneme

Hock Goh

Marcus Wallenberg

Mikael Mäkinen

Gunnar Brock Chairman of Stora Enso’s Board of Directors since March 2010. Member of Stora Enso’s Board of Directors since March 2005. Independent of the Company and the significant shareholders. Born 1950. M.Sc. (Econ.). Swedish citizen. Owns 52 008 R shares in Stora Enso.

Hock Goh Member of Stora Enso’s Board of Directors since April 2012. Independent of the Company and the significant shareholders. Born 1955. Bachelor’s degree (honours) in Mechanical Engineering. Singaporean citizen. Owns 10 990 R shares in Stora Enso.

Juha Rantanen Vice Chairman of Stora Enso’s Board of Directors since March 2010. Member of Stora Enso’s Board of Directors since March 2008. Independent of the Company and the significant shareholders. Born 1952. M.Sc. (Econ.). Finnish citizen. Owns 23 777 R shares in Stora Enso.

Birgitta Kantola Member of Stora Enso’s Board of Directors since March 2005. Independent of the Company and the significant shareholders. Born 1948. LL.M., Econ.Dr.H.C. Finnish citizen. Owns 27 195 R shares in Stora Enso.

Anne Brunila Member of Stora Enso’s Board of Directors since April 2013. Independent of the Company and the significant shareholders. Born 1957. D.Sc. (Econ.). Finnish citizen. Owns 5 207 R shares in Stora Enso. Elisabeth Fleuriot Member of Stora Enso’s Board of Directors since April 2013. Independent of the Company and the significant shareholders. Born 1956. M.Sc. (Econ). French citizen. Owns 5 207 R shares in Stora Enso.

8

Stora Enso Facts & Figures 2013

Mikael Mäkinen Member of Stora Enso’s Board of Directors since March 2010. Independent of the Company and the significant shareholders. Born 1956. M.Sc. (Eng.). Finnish citizen. Owns 17 883 R shares in Stora Enso. Hans Stråberg Member of Stora Enso’s Board of Directors since April 2009. Independent of the Company and the significant shareholders. Born 1957. M.Sc. (Eng.). Swedish citizen. Owns 20 768 R shares in Stora Enso.

Birgitta Kantola Anne Brunila

Matti Vuoria Member of Stora Enso’s Board of Directors since March 2005. Independent of the Company and the significant shareholders. Born 1951. LL.M., B.Sc. (Arts). Finnish citizen. Owns 32 695 R shares in Stora Enso. Marcus Wallenberg Member of Stora Enso’s Board of Directors since December 1998. Independent of the Company.* Born 1956. B.Sc. (Foreign Service). Swedish citizen. Owns 2 541 A and 28 410 R shares in Stora Enso.

* Marcus Wallenberg (member of the investment committee of Foundation Asset Management) is not independent of significant shareholders of the Company. The Board has evaluated that Marcus Wallenberg is independent of the Company despite his 15-year membership of the Board of Directors. The independence is evaluated in accordance with recommendation 15 of the Finnish Corporate Governance Code. The full recommendation can be found at www.cgfinland.fi. A significant shareholder according to the recommendation is a shareholder that holds more than 10% of all company shares or the votes carried by all the shares or a shareholder that has the right or the obligation to purchase 10% of already issued shares.

Juha Vanhainen

Juan Carlos Bueno Lauri Peltola

Jyrki Tammivuori Per Lyrvall

Jouko Karvinen Chief Executive Officer (CEO) of Stora Enso. Born 1957. M.Sc. (Eng.). Finnish citizen. Owns 237 009 R shares in Stora Enso. Karl-Henrik Sundström Executive Vice President, Printing and Living, Deputy to the CEO. Born 1960. B.Sc. (Business Studies). Swedish citizen. Owns 23 700 R shares in Stora Enso through Alma Patria AB.* Jyrki Tammivuori Chief Financial Officer (acting until 31 January 2014). Born 1971. M.Sc. (Econ.). Finnish citizen. Owns 15 749 R shares and has 2 500 (2007) options/synthetic options in Stora Enso. Juan Carlos Bueno Executive Vice President, Biomaterials. Born 1968. M.Sc. (Industrial Eng.). Colombian citizen. Does not own any Stora Enso shares nor options. Lars Häggström Executive Vice President, Global People and Organisation. Born 1968. B.Sc. (HR Development and Labour Relations). Swedish citizen. Owns 1 045 R shares in Stora Enso.

Per Lyrvall Executive Vice President, Global Ethics and Compliance, General Counsel, Country Senior Executive, Sweden. Born 1959. LL.M. Swedish citizen. Owns 19 205 R shares and 2 500 (2007) options/synthetic options in Stora Enso. Mats Nordlander Executive Vice President, Renewable Packaging. Born 1961. Dipl.Eng. Swedish citizen. Owns 67 002 R shares in Stora Enso. Lauri Peltola Executive Vice President, Global Identity, Country Senior Executive, Finland. Born 1963. CCJ. Finnish citizen. Owns 32 955 R shares in Stora Enso. Juha Vanhainen Executive Vice President, Programme Director.** Born 1961. M.Sc. (Eng.). Finnish citizen. Owns 58 314 R shares and has 7 500 (2007) options/ synthetic options in Stora Enso.

*related party **for the EUR 200 million streamlining and structure simplification programme. Also responsible for Wood Supply operations in Finland and Sweden, Energy, Logistics and Business Information Services.

Hannu Kasurinen, Executive Vice President, Building and Living, was a member of the Group Executive Team until the reorganisation of the company on 1 July 2013. Seppo Parvi has been appointed Stora Enso´s new Chief Financial Officer as of 1 February 2014.

Options/synthetic options were issued annually between 1999 and 2007.

Stora Enso Facts & Figures 2013

9

Extract of the Consolidated Financial Statements Consolidated Income Statement

Consolidated Statement of Comprehensive Income Year Ended 31 December

EUR million

Year Ended 31 December

2013

2012

10 544

10 815

122

219

Changes in inventories of finished goods and work in progress

-30

-7

Items that will Not be Reclassified to Profit and Loss

Change in net value of biological assets

172

-5

-6 777

-6 962

-977

-1 008

Income tax relating to items that will not be reclassified

-1 368

-1 349

-602

-578

100

108

-1 150

-532

Operating Profit

34

701

Financial income

64

128

Financial expense

-287

-348

Loss/Profit before Tax

-189

481

Sales Other operating income

Materials and services Freight and sales commissions Personnel expenses Other operating expenses Share of results of equity accounted investments Depreciation, amortisation and impairment charges

Income tax

118

9

Net Loss/Profit for the Year

-71

490

Owners of the Parent

-53

480

Non-controlling Interests

-18

10

Net Loss/Profit for the Year

-71

490

Attributable to:

-0.07

This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2013.

10

Stora Enso Facts & Figures 2013

2013

2012

-71

490

Actuarial gains/losses on defined benefit plans

74

-184

Share of OCI of equity accounted investments that will not be reclassified

-1

-5

-27

35

46

-154

Net loss/profit for the period Other Comprehensive Income (OCI)

Items that may be Reclassified Subsequently to Profit and Loss Share of OCI of equity accounted investments that may be reclassified Currency translation movements on equity net investments (CTA)

15

1

-227

-29

Currency translation movements on non-controlling interests

-6

-3

Net investment hedges

23

-17

Currency and commodity hedges

-28

34

Available-for-sale financial assets

-101

-178

Income tax relating to items that may be reclassified

Total Comprehensive Income

Earnings per Share Basic and diluted earnings per share, EUR

EUR million

2

-3

-322

-195

-347

141

-323

134

Total Comprehensive Income Attributable to: Owners of the Parent Non-controlling interests

-24

7

-347

141

0.61

This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2013.

Stora Enso Facts & Figures 2013

11

Consolidated Statement of Financial Position

Consolidated Cash Flow Statement Year Ended 31 December

As at 31 December EUR million

2013

2012

EUR million

2013

2012

Net loss/profit for the year

-71

490

Result from the Statement of Other Comprehensive Income

-23

34

Cash Flow from Operating Activities

ASSETS Non-current Assets Goodwill

O

220

226

Other intangible assets

O

51

44

Property, plant and equipment

O

4 182

5 049

4 453

5 319

Biological assets

O

399

Emission rights

O

21

222 30

Equity accounted investments

O

1 961

1 965

Adjustments and reversal of non-cash items: Taxes Depreciation and impairment charges Change in value of biological assets Change in fair value of options and TRS Share of results of equity accounted investments

Available-for-sale: interest-bearing

I

10

96

Available-for-sale: operative

O

361

451

Profits and losses on sale of fixed assets and investments Net financial items

Non-current loan receivables

I

80

134

Deferred tax assets

T

229

143

Other non-current assets

O

16

23

7 530

8 383

Interest received Interest paid

Current Assets Inventories

Other adjustments Dividends received from equity accounted investments

O

1 376

1 458

Tax receivables

T

13

19

Current operative receivables

O

1 521

1 687

Interest-bearing receivables

I

249

297

Cash and cash equivalents

I

2 065

1 850

5 224

5 311

12 754

13 694

Total Assets

Other financial items, net Income taxes paid

-9 532

-172

5

1

-26

-100

-108

-6

5

223

220

-

-31

38

102

20

17

-210

-168

14

-79

-43

-104

Change in net working capital, net of businesses acquired or sold

285

56

Net Cash Provided by Operating Activities

988

936

Cash Flow from Investing Activities Acquisition of subsidiary shares and business operations, net of acquired cash Acquisition of shares in equity accounted investments

EQUITY AND LIABILITIES

Acquisition of available-for-sale investments

Equity Attributable to Owners of the Parent

Capital expenditure

Share capital

-118 1 150

25

-11

-66

-115

-9

-

-405

-541

-19

-20

-

2

1 342

1 342

Share premium

77

77

Treasury shares

-

-10

Proceeds from disposal of available-for-sale investments

42

-

235

344

Proceeds from sale of fixed assets

23

6

Fair value reserve

Investment in biological assets Proceeds from disposal of shares in equity accounted investments and equity repayment

Cumulative translation adjustment

-218

-10

Proceeds from/payment of non-current receivables, net

Invested non-restricted equity fund

633

633

Net Cash Used in Investing Activities

3 197

2 914

-53

480

5 213

5 770

Retained earnings Net loss/profit for the period Non-controlling Interests Total Equity

60

92

5 273

5 862

Post-employment benefit provisions

O

378

480

Other provisions

O

121

142

Deferred tax liabilities

T

300

340

Non-current debt

I

3 702

4 341

Other non-current operative liabilities

O

16

12

4 517

5 315

-5 -684

Cash Flow from Financing Activities Proceeds from new long-term debt Repayment of long-term liabilities Change in current borrowings Dividends paid

Non-current Liabilities

96 -313

Equity injections less dividends to non-controlling interest

151

1 472

-371

-571

20

-179

-237

-237

-7

-3

-444

482

Net Increase in Cash and Cash Equivalents

231

734

Translation adjustment

-23

-23

Cash and cash equivalents at beginning of year

1 845

1 134

Net Cash and Cash Equivalents at Year End

2 053

1 845

2 065

1 850

Net Cash Used in/Provided by Financing Activities

Current Liabilities Current portion of non-current debt

I

505

181

Cash and Cash Equivalents at Year End

Interest-bearing liabilities

I

619

607

Bank Overdrafts at Year End

Bank overdrafts

I

12

5

Current operative liabilities

O

1 812

1 685

Tax liabilities

T

16

39

2 964

2 517

12 754

13 694

Total Equity and Liabilities

Items designated "O" comprise Operative Capital, items designated "I" comprise Interest-bearing Net Liabilities, items designated "T" comprise Net Tax Liabilities. This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2013.

12

Stora Enso Facts & Figures 2013

-12

-5

2 053

1 845

This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2013.

Stora Enso Facts & Figures 2013

13

Auditor’s Report

Information for shareholders

To the Annual General Meeting of Stora Enso Oyj

Annual General Meeting (AGM)

We have audited the accounting records, the financial statements, the report of the Board of Directors, and the administration of Stora Enso Oyj for the year ended 31 December, 2013. The financial statements comprise the consolidated income statement, statement of comprehensive income, statement of financial position, cash flow statement, statement of changes in equity and notes to the consolidated financial statements, as well as the parent company’s income statement, balance sheet, cash flow statement and notes to the financial statements.

the auditor considers internal control relevant to the entity’s preparation of financial statements and report of the Board of Directors that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements and the report of the Board of Directors.

Responsibility of the Board of Directors and the Chief Executive Officer

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

The Board of Directors and the Chief Executive Officer are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as for the preparation of financial statements and the report of the Board of Directors that give a true and fair view in accordance with the laws and regulations governing the preparation of the financial statements and the report of the Board of Directors in Finland. The Board of Directors is responsible for the appropriate arrangement of the control of the company’s accounts and finances, and the Chief Executive Officer shall see to it that the accounts of the company are in compliance with the law and that its financial affairs have been arranged in a reliable manner.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial statements, on the consolidated financial statements and on the report of the Board of Directors based on our audit. The Auditing Act requires that we comply with the requirements of professional ethics. We conducted our audit in accordance with good auditing practice in Finland. Good auditing practice requires that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the report of the Board of Directors are free from material misstatement, and whether the members of the Board of Directors of the parent company or the Chief Executive Officer are guilty of an act or negligence which may result in liability in damages towards the company or have violated the Limited Liability Companies Act or the articles of association of the company. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the report of the Board of Directors. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments,

Opinion on the consolidated financial statements In our opinion, the consolidated financial statements give a true and fair view of the financial position, financial performance, and cash flows of the group in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

Opinion on the company’s financial statements and the report of the Board of Directors In our opinion, the financial statements and the report of the Board of Directors give a true and fair view of both the consolidated and the parent company´s financial performance and financial position in accordance with the laws and regulations governing the preparation of the financial statements and the report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in the financial statements.

Other opinions We support that the financial statements should be adopted. The proposal by the Board of Directors regarding the treatment of distributable funds is in compliance with the Limited Liability Companies Act. We support that the Board of Directors of the parent company and the Chief Executive Officer should be discharged from liability for the financial period audited by us. Helsinki, 5 February 2014 Deloitte & Touche Oy Authorized Public Audit Firm Jukka Vattulainen APA

Stora Enso Oyj’s AGM will be held at 16.00 (Finnish time) on Wednesday 23 April 2014 at the Marina Congress Center, Katajanokanlaituri 6, Helsinki, Finland.

Corporate Governance Report 2013 is published in English and downloadable as a PDF file from the Company's website. A Finnish translation of the report can be found on the Company’s website.

Nominee-registered shareholders wishing to attend and vote at the AGM must be temporarily registered in the Company’s register of shareholders on the record date, 9 April 2014. Instructions for submitting notice of attendance will be given in the invitation to the AGM, which can be consulted on the Company’s website at www.storaenso.com/agm.

Global Responsibility Report is published in English and downloadable as a PDF file from the Company’s website.

AGM and dividend in 2014

Mailing lists for financial information

9 April 23 April 24 April 28 April 15 May

• Finnish and Swedish shareholders: Changes of address are updated automatically based on the population registers in Finland and Sweden. Please request addition to or removal from mailing lists by e-mail [email protected], by mail Stora Enso Oyj, Global Communications, P.O. Box 309, FI-00101 Helsinki or by tel. +358 2046 131. • Registered ADR holders should contact DBTCA. Beneficial owners of Stora Enso ADRs should contact their broker. • Other stakeholders: see details for Finnish and Swedish shareholders.

Record date for AGM Annual General Meeting (AGM) Ex-dividend date Record date for dividend Dividend payment effective

Dividend The Board of Directors proposes to the AGM that a dividend of EUR 0.30 per share be paid to the shareholders for the fiscal year ending 31 December 2013. The dividend payable on shares registered with Euroclear Sweden will be forwarded by Euroclear Sweden AB and paid in Swedish krona. The dividend payable to ADR holders will be forwarded by Deutsche Bank Trust Company Americas (DBTCA) and paid in US dollars.

Publication dates for 2014 5 February 17 February 23 April 21 July 22 October

Financial results for 2013 Annual Report 2013 Interim Review for January–March Interim Review for January–June Interim Review for January–September

Distribution of financial information Stora Enso’s Annual Report is comprised of four separate reports: Stora Enso Rethink 2013, Financial Report 2013, Corporate Governance Report 2013 and Global Responsibility Report 2013. Stora Enso Rethink 2013 is published in English, Finnish and Swedish, and distributed to shareholders registered with Euroclear Finland and Euroclear Sweden who have requested a copy. Stora Enso Rethink 2013 is downloadable as a PDF file from the Company’s website. Financial Report is published in English and downloadable as a PDF file from the Company’s website. The Official Financial Statements (in Finnish), an English translation of the Parent Company Financial Statements and the list of principal subsidiaries can be found on the Company’s website.

Interim Reviews are published in English, Finnish and Swedish on the Company’s website, from where they can be downloaded as PDF files.

Information for holders of American Depositary Receipts (ADRs) The Stora Enso dividend reinvestment and direct purchase plan is administered by Deutsche Bank Trust Company Americas. The plan makes it easier for existing ADR holders and first-time purchasers of Stora Enso ADRs to increase their investment by reinvesting cash distributions or by making additional cash investments. The plan is intended for US residents only. Further information on the Stora Enso ADR programme is available at www.adr.db.com.

Contact information for Stora Enso ADR holders Deutsche Bank Shareholder Services c/o American Stock Transfer & Trust Company Peck Slip Station P.O. Box 2050, New York, NY 10272-2050, USA Toll-Free number (within the USA only): +1 866 706 0509 [email protected]

Contacts Ulla Paajanen-Sainio SVP, Investor Relations Stora Enso Oyj, P.O. Box 309, FI-00101 Helsinki, Finland Tel. +358 2046 21242, [email protected]

This Auditor’s Report is a copy of the Auditor’s Report included in a separate document, Financial Report 2013.

14

Stora Enso Facts & Figures 2013

Stora Enso Facts & Figures 2013

15

Global Responsibility Report

Financial Report Stora Enso 2013

Stora Enso 2013

Stora Enso

Stora Enso

Global Responsibility Report 2013

Financial Report 2013

Find out more about Stora Enso’s

Contains detailed information on

performance on issues related to

Stora Enso’s financial performance

sustainability in this in-depth report,

and corporate governance, as well as

which follows guidelines defined by the

the capital markets. This includes

Global Reporting Initiative (GRI).

consolidated financial statements and notes, and the report of the Board of Directors.

Stora Enso Oyj P.O. Box 309 FI-00101 Helsinki, Finland Visiting address: Kanavaranta 1 Tel. +358 2046 131

Stora Enso AB P.O. Box 70395 SE-107 24 Stockholm, Sweden Visiting address: World Trade Center Klarabergsviadukten 70 Tel. +46 1046 46 000 storaenso.com facebook.com/storaenso twitter.com/storaenso [email protected]