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Stora Enso Oyj — Audit Report / Information 2010
Feb 24, 2011
3239_fs_2011-02-24_4afd5778-f87e-45a9-8f45-836108ccf526.pdf
Audit Report / Information
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Facts & Figures
Stora Enso's Year 2010
- 2 Information for shareholders
- 3 Map
- 5 Stora Enso in brief
- 6 Business Areas
- 8 Board of Directors and Group Executive Team
- 10 Calculation of key figures
- 11 Key figures
- 12 Extract of the consolidated financial statements
- 16 Auditor's report
Information for shareholders
Annual General Meeting (AGM)
Stora Enso Oyj's AGM will be held at 16.00 (Finnish time) on Wednesday 20 April 2011 at the Marina Congress Center, Katajanokanlaituri 6, Helsinki, Finland.
Nominee-registered shareholders wishing to attend and vote at the AGM must be temporarily registered in the Company's share register on the record date, 8 April 2011. 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/ investors.
AGM and dividend in 2011
| 8 April | Record date for AGM |
|---|---|
| 20 April | Annual General Meeting (AGM) |
| 21 April | Ex-dividend date |
| 27 April | Record date for dividend |
| 11 May | Dividend payment effective |
Dividend
The Board of Directors proposes to the AGM that a dividend of EUR 0.25 per share be paid to the shareholders for the fiscal year ending 31 December 2010. 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 2011
| 8 February | Financial results for 2010 |
|---|---|
| 24 February | Annual Report 2010 |
| 20 April | Interim Review for January–March |
| 21 July | Interim Review for January–June |
| 21 October | Interim Review for January–September |
Distribution of financial information
Stora Enso's Annual Report is comprised of three separate reports: Facts & Figures 2010, Financial Report 2010 and Sustainability Report 2010. A wider review of 2010 will be published later in the spring.
Facts & Figures 2010 is published in English, Finnish and Swedish, and distributed to shareholders registered with Euroclear Finland and Euroclear Sweden who have requested a copy. Facts & Figures 2010 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. A Finnish translation of the Financial Report, Parent Company Financial Statements and the list of principal subsidiaries can be found on the Company's website.
Sustainability Report is published in English and downloadable as a PDF file from the Company's website.
Printed Interim Reviews (in English, Finnish and Swedish) are distributed to shareholders registered with Euroclear Finland and Euroclear Sweden who have requested a copy. Interim Reviews are published in English, Finnish and Swedish on the Company's website, from where they can be downloaded as PDF files.
Mailing lists for financial information
Please notify any change of address or request for addition to or removal from mailing lists as follows:
• Finnish and Swedish shareholders:
by e-mail [email protected], by mail Stora Enso Oyj, Financial 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.
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 (DBTCA). 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 Trust Company Americas c/o American Stock Transfer & Trust Company Peck Slip Station P.O. Box 2050 New York, NY 10272-2050, USA Toll-Free (within the USA only): +1 866 249 2593
Contacts
Ulla Paajanen-Sainio Head of Investor Relations Tel. +358 2046 21242 Fax +358 2046 21307 Stora Enso Oyj P.O. Box 309, FI-00101 Helsinki, Finland [email protected]
Employees and production facilities
Stora Enso has employees and production facilities in more than 35 countries worldwide. New growth markets in Asia and Latin America hold great promise for the Group.
China
The rapidly expanding Chinese paper and paperboard market offers huge demand for Stora Enso's products. The Group's plantations in Guangxi could serve as a foundation for potential integrated pulp and paper or board production to manufacture recyclable products for the local market from renewable natural resources. Stora Enso has paper mills in Suzhou and Dawang. In addition Stora Enso owns two coreboard plants at Hangzhou and Foshan. In October 2010 Stora Enso signed an agreement to acquire majority of the Chinese packaging company Inpac International. Inpac is a packaging company with approximately 3 100 employees and production operations in China and India. Its main production plants are at Qian'an in northern China, Dongguan in southern China and Chennai in India.
1 865 employees (+2 700*) Dawang
* Stora Enso has signed an agreement to acquire majority ownership in the Chinese packaging company Inpac International with employees and production operations in China and India.
Stora Enso's plantation project Stora Enso's trial plantation
Stora Enso in brief
Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products.
Stora Enso will focus more on growth markets in China and Latin America, and fibre-based packaging, plantation-based pulp and selected paper grades.
Stora Enso's company mission is to use and develop its expertise in renewable materials to meet the needs of its customers and many of today's global raw material challenges. Our products provide a climate-friendly alternative to many products made from competing non-renewable materials, and have a smaller carbon footprint.
Stora Enso's annual production capacity is 11.8 million tonnes of paper and board, 1.3 billion square metres of corrugated packaging and 6.4 million cubic metres of sawn wood products, including 3.2 million cubic metres of value-added products. The Group is listed in Helsinki and Stockholm.
Number of employees by country 2010*
* Continuing operations
by country 2011 Paper and board capacity by country 2011
- Finland 38% Sweden 30% Germany 14%
- China 4%
- Brazil 2%
- Other countries 12%
Chemical Pulp capacity by country 2011*
Finland60% Sweden 26% 8 000 4 000
Operating profit excl. NRI and fair valuations as % of sales
* Including Stora Enso's share of associated companies
EUR million %
Sales and operating profit Distributed Dividend/Capital Repayment
Continuing operations
Sales, EUR million
Business Areas
Publication Paper
Stora Enso Publication Paper comprises the business units Newsprint and Book Paper and Magazine Paper. It produces a wide range of papers serving publishers, advertisers and printing houses.
Newsprint and Book Paper produces a wide range of standard newsprint and improved newsprint, book and directory paper grades. The book and directory paper range includes paper for hardback and paperback books, telephone directories and timetables.
Magazine Paper offers uncoated magazine paper mainly used in periodicals and advertising materials. Specialist and general interest magazines are significant customers of Stora Enso's coated matt, silk and glossy magazine paper, which customers also use for items such as supplements, home shopping catalogues and magazine covers.
Market share % 17 2 Main markets (% of sales) 77 19
Europe Asia
Newsprint and Book Paper
Magazine Paper
Market share and main markets
Newsprint and Book Paper
Market share and main markets
| Europe | Latin America | Asia | |
|---|---|---|---|
| Market share % | 16 | 34 | 2 |
| Main markets (% of sales) | 75 | 11 | 9 |
brochures. The office paper grades include uncoated fine papers for office and digital printing, envelopes, notebooks and pads and
Fine Paper
Stora Enso Fine Paper produces high-quality graphic and office paper for printers and publishers, merchants, envelope converters, office equipment manufacturers and office suppliers.
Stora Enso's graphic paper grades are primarily multicoated fine papers tailored for art books, annual reports, luxury magazines and Share of Group
business forms.
| Europe | Latin America | Asia |
|---|---|---|
| 14 | 10 | 2 |
| 68 | 9 | 20 |
| 11 | 1 | 1 |
| 79 | 2 | 10 |
Packaging
Stora Enso Packaging produces fibre-based packaging materials and innovative packaging solutions for consumer goods and industrial packaging applications. We operate in every stage of the value chain, from pulp production, material and packaging production to recycling.
Its wide range of Consumer Board products covers all major board categories and end-uses such as liquid packaging boards, Share of Group
Consumer Board
food service boards, graphical boards and carton boards for use in food packaging, cigarettes, pharmaceuticals, cosmetics and luxury products.
Its Industrial Packaging products include corrugated packaging, containerboard, cores and coreboard, paper sacks, and sack and kraft paper.
Main markets
| Europe | Asia | North America | |
|---|---|---|---|
| Main markets (% of sales) | 79 | 16 | 1 |
| Consumer Board General market share not applicable due to nature of product portfolio. |
|||
Industrial Packaging
Main markets
| Europe | Asia | North America | |
|---|---|---|---|
| Main markets (% of sales) 2) | 83 | 10 | 5 |
1) Excluding corrugated packaging
2) External sales General market share not applicable due to nature of product portfolio. Industrial Packaging
Wood Products
Stora Enso Wood Products provides wood-based products and innovations for construction and interior decoration, and solid biofuels for the energy sector. Its recyclable products are made from high quality renewable European pine or spruce, and address living, building and packaging needs. Share of Group
Market share and main markets
| Europe | World | |||
|---|---|---|---|---|
| Market share % | 4 | 2 | ||
| Europe | Asia & Oceania |
North Africa & Middle East | North America | |
| Wood Products Main markets (% of sales) |
56 | 30 | 13 | 1 |
| 1) Sawing capacity |
Reporting segment Other is not included in the pie charts presented on this spread, thus the share of the Group's sales and operating profit percentages do not add up to 100.
Board of Directors
Left to right/ Top to bottom: Gunnar Brock, Juha Rantanen, Carla Grasso, Birgitta Kantola, Mikael Mäkinen, Hans Stråberg, Matti Vuoria and Marcus Wallenberg.
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 18 458 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 12 756 R shares in Stora Enso.
Carla Grasso
Member of Stora Enso's Board of Directors since March 2010. Independent of the Company and the significant shareholders. Born 1962. Master's degree in Economic Policy. Brazilian citizen. Owns 3 843 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. Finnish citizen. Owns 13 155 R shares in Stora Enso.
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 3 843 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 6 728 R shares in Stora Enso.
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 18 655 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 14 370 R shares in Stora Enso.
Claes Dahlbäck, Chairman of Stora Enso's Board of Directors from December 1998 until his resignation on 31 March 2010.
Ilkka Niemi, Vice Chairman of Stora Enso's Board of Directors from March 2005 until his resignation on 31 March 2010.
Dominique Hériard Dubreuil, member of the Board of Directors from March 2006 until her resignation on 31 March 2010
The independence is evaluated in accordance with Recommendation 15 of the Finnish Corporate Governance Code. The full recommendation can be found at the web address 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.
* Marcus Wallenberg (member of the investment committee of Foundation Asset Management) is not independent of significant shareholders of the Company.
Group Executive Team
Left to right/ Top to bottom: Jouko Karvinen, Markus Rauramo, Hannu Alalauri, Lars Häggström, Hannu Kasurinen, Mats Nordlander, Bernd Rettig and Juha Vanhainen.
Jouko Karvinen
Chief Executive Officer (CEO) of Stora Enso. Born 1957 M.Sc. (Eng.). Finnish citizen. Owns 83 311 R shares and has 157 646 (2004–2007) options/synthetic options in Stora Enso.
Markus Rauramo
Chief Financial Officer (CFO) of Stora Enso. Born 1968. M.Sc. (Econ. and Pol. Hist.). Finnish citizen. Owns 17 924 R shares and has 25 000 (2004–2007) options/synthetic options in Stora Enso.
Hannu Alalauri
Executive Vice President, Fine Paper. Born 1959. M.Sc. (Chem.), eMBA. Finnish citizen. Owns 17 254 R shares and has 30 000 (2004– 2007) options/synthetic options in Stora Enso.
Lars Häggström
Executive Vice President, Human Resources. Born 1968. B.Sc. (HR Development and Labour Relations). Swedish citizen. Does not own any Stora Enso shares nor options.
Hannu Kasurinen
Executive Vice President, Wood Products. Born 1963. M.Sc. (Econ.). Finnish citizen. Owns 17 848 R shares and has 33 750 (2004–2007) options/synthetic options in Stora Enso.
Mats Nordlander
Executive Vice President, Packaging, Regional responsibility for Asia Pacific, and Country Manager Sweden. Born 1961. Dipl.Eng. Swedish citizen. Owns 14 513 R shares and has 30 000 (2004–2007) options/synthetic options in Stora Enso.
Bernd Rettig
Executive Vice President, Technology, Energy, Logistics & Investments, Country Manager Germany. Born 1956. M.Sc. (Eng.). German citizen. Owns 19 192 R shares and has 67 500 (2004–2007) options/ synthetic options in Stora Enso.
Juha Vanhainen
Executive Vice President, Publication Paper, Country Manager Finland. Born 1961. M.Sc. (Eng.). Finnish citizen. Owns 15 800 R shares and has 41 250 (2004–2007) options/synthetic options in Stora Enso.
Elisabet Salander Björklund, Executive Vice President, Wood Supply, HR, Sustainability and Latin America, Country Manager Sweden, was a member of the Group Executive Team until her resignation on 31 August 2010.
Options/synthetic options were issued annually between 1999 and 2007. Enso-Gutzeit became Enso in May 1996. STORA and Enso merged in December 1998.
Calculation of key figures
| Return on capital employed, ROCE (%) |
100 | x | Operating profit Capital employed 1) 2) |
|---|---|---|---|
| Return on operating capital, ROOC (%) |
100 | x | Operating profit Operating capital 1) 2) |
| Return on equity, ROE (%) |
100 | x | Profit before tax and non-controlling items – taxes Total Equity 2) |
| Equity ratio (%) | 100 | x | Total Equity Total assets |
| Interest-bearing net liabilities | Interest-bearing liabilities – interest-bearing assets | ||
| Debt/equity ratio | Interest-bearing net liabilities Equity |
||
| CEPS | Net profit/loss for the period 3) – Fixed asset depreciation and impairment Average number of shares |
||
| EPS | Net profit/loss for the period 3) Average number of shares |
||
| Payout ratio excl. NRI, % |
100 | x | Dividend and distribution / share EPS excl. NRI |
| Dividend and distribution yield, % | 100 | x | Dividend and distribution / share Closing price of Share |
| Price/earnings ratio (P/E), excl. NRI |
Closing price of Share EPS excl. NRI |
1) Capital employed = Operating capital – Net tax liabilities
2) Average for the financial period
3) Attributable to owners of the Parent
Key figures
Key figures
| Continuing Operations | 2010 | 2009 | 2008 |
|---|---|---|---|
| Sales, EUR million | 10 296.9 | 8 945.1 | 11 028.8 |
| Operating profit excluding NRI and fair valuations 1), EUR million | 754.1 | 320.5 | 388.4 |
| Operating profit/(loss) (IFRS), EUR million | 1 026.8 | -607.6 | -726.6 |
| Profit before tax excluding NRI, EUR million | 745.7 | 194.2 | 151.6 |
| Profit/(loss) before tax, EUR million | 925.9 | -886.8 | -893.8 |
| Net profit excluding NRI, EUR million | 627.0 | 153.2 | 142.8 |
| Net profit/(loss), EUR million | 769.3 | -878.2 | -679.0 |
| Capital expenditure, EUR million | 400.4 | 423.7 | 704.7 |
| Return on capital employed (ROCE), excluding NRI, % | 10.3 | 3.9 | 3.4 |
| ROCE, excluding NRI and fair valuations 1), % | 9.2 | 3.9 | 4.1 |
| Return on equity (ROE) 2), % | 13.5 | -16.2 | -10.1 |
| Debt/equity ratio2) | 0.39 | 0.51 | 0.56 |
| Deliveries of paper and board, 1 000 tonnes | 10 758 | 10 174 | 11 836 |
| Deliveries of corrugated board, million m² | 1 027 | 966 | 1 071 |
| Deliveries of wood products, 1 000 m³ | 5 198 | 4 902 | 5 893 |
| Average number of employees | 27 383 | 28 696 | 33 815 |
Share information
| Total Operations | 2010 | 2009 | 2008 |
|---|---|---|---|
| Earnings/share excluding NRI, EUR | 0.79 | 0.19 | 0.19 |
| Earnings/share, EUR | 0.97 | -1.12 | -0.85 |
| Cash earnings/share excluding NRI, EUR | 1.46 | 0.92 | 1.05 |
| Cash earnings/share, EUR | 1.33 | 0.35 | 1.01 |
| Dividend and distribution/share ³) , EUR |
0.25 | 0.20 | 0.20 |
| Equity/share, EUR | 7.87 | 6.50 | 7.09 |
| Payout ratio, excluding NRI, % | 32 | 105 | 105 |
| Total market capitalisation at 31 December, EUR million | 6 109 | 4 025 | 4 378 |
1) Fair valuations include synthetic options net of realised and open hedges, CO2 emission rights, and valuations of biological assets mainly related to associated companies' forest assets.
2) Total operations.
3) Board's proposal for dividend distribution.
NRI = Non-recurring items
Extract of the Consolidated Financial Statements
Consolidated Income Statement
| Year Ended 31 December | ||||
|---|---|---|---|---|
| EUR million | 2010 | 2009 | 2008 | |
| Continuing Operations | ||||
| Sales | 10 296.9 | 8 945.1 | 11 028.8 | |
| Other operating income | 159.1 | 172.8 | 120.2 | |
| Changes in inventories of finished goods and work in progress | 64.2 | -200.5 | -78.1 | |
| Change in net value of biological assets | -4.0 | -3.3 | -18.2 | |
| Materials and services | -6 451.6 | -5 464.3 | -6 815.7 | |
| Freight and sales commissions | -1 010.1 | -833.6 | -1 127.1 | |
| Personnel expenses | -1 375.3 | -1 349.6 | -1 669.1 | |
| Other operating expenses | -482.2 | -833.1 | -752.6 | |
| Share of results of equity accounted investments | 112.5 | 111.8 | 7.6 | |
| Depreciation, amortisation and impairment charges | -282.7 | -1 152.9 | -1 422.4 | |
| Operating Profit / (Loss) | 1 026.8 | -607.6 | -726.6 | |
| Financial income | 91.6 | 209.3 | 356.7 | |
| Financial expense | -192.5 | -488.5 | -523.9 | |
| Profit / (Loss) before Tax | 925.9 | -886.8 | -893.8 | |
| Income tax | -156.6 | 8.6 | 214.8 | |
| Net Profit / (Loss) for the Year from Continuing Operations | 769.3 | -878.2 | -679.0 | |
| Discontinued Operations: Profit after Tax for the Year | - | - | 4.3 | |
| Net Profit / (Loss) for the Year from Total Operations | 769.3 | -878.2 | -674.7 | |
| Attributable to: | ||||
| Owners of the Parent | 766.0 | -879.7 | -673.4 | |
| Non-controlling Interests | 3.3 | 1.5 | -1.3 | |
| Net Profit / (Loss) for the Year | 769.3 | -878.2 | -674.7 | |
| Earnings per Share | ||||
| Basic and diluted earnings / (loss) per share, Total Operations, EUR | 0.97 | -1.12 | -0.85 | |
| Basic and diluted earnings / (loss) per share, Continuing Operations, EUR | 0.97 | -1.12 | -0.86 |
This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2010.
Consolidated Statement of Comprehensive Income
| Year Ended 31 December | |||||
|---|---|---|---|---|---|
| EUR million | 2010 | 2009 | 2008 | ||
| Net profit / (loss) for the period | 769.3 | -878.2 | -674.7 | ||
| Other Comprehensive Income (OCI) | |||||
| Actuarial losses on defined benefit plans | -32.5 | -20.4 | -12.7 | ||
| Asset revaluation on step acquisition | - | 3.9 | - | ||
| Available for sale financial assets | 95.9 | 180.3 | -398.0 | ||
| Currency and commodity hedges | 107.7 | 224.1 | -312.3 | ||
| Share of other comprehensive income of equity accounted investments | 9.2 | -8.5 | -9.4 | ||
| Currency translation movements on equity net investments (CTA) | 305.6 | 252.6 | -328.3 | ||
| Currency translation movements on non-controlling interests | 5.1 | 5.9 | -5.5 | ||
| Net investment hedges | -9.8 | 0.7 | 1.3 | ||
| Income tax relating to components of other comprehensive income | -13.4 | -65.0 | 88.8 | ||
| Other Comprehensive Income, net of tax | 467.8 | 573.6 | -976.1 | ||
| Total Comprehensive Income | 1 237.1 | -304.6 | -1 650.8 | ||
| Total Comprehensive Income Attributable to: | |||||
| Owners of the Parent | 1 228.7 | -312.0 | -1 644.7 | ||
| Non-controlling interests | 8.4 | 7.4 | -6.1 | ||
| 1 237.1 | -304.6 | -1 650.8 |
This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2010.
Consolidated Statement of Financial Position
| As at 31 December | ||||
|---|---|---|---|---|
| EUR million | 2010 | 2009 | 2008 | |
| Assets | ||||
| Fixed Assets and Other Non-current Investments | ||||
| Goodwill | O | 214.8 | 208.3 | 207.6 |
| Other intangible fixed assets | O | 52.6 | 71.4 | 77.5 |
| Property, plant and equipment | O | 5 066.9 | 4 700.2 | 5 413.7 |
| 5 334.3 | 4 979.9 | 5 698.8 | ||
| Biological assets | O | 190.5 | 152.5 | 133.6 |
| Emission rights | O | 41.0 | 25.3 | 67.0 |
| Equity accounted investments | O | 1 744.0 | 1 481.3 | 1 042.5 |
| Available-for-sale: interest-bearing | I | 78.7 | 71.7 | 154.9 |
| Available-for-sale: operative | O | 879.4 | 778.5 | 954.3 |
| Non-current loan receivables | I | 126.5 | 159.6 | 130.3 |
| Deferred tax assets | T | 111.0 | 155.8 | 74.5 |
| Other non-current assets | O | 37.2 | 30.4 | 16.2 |
| 8 542.6 | 7 835.0 | 8 272.1 | ||
| Current Assets | ||||
| Inventories | O | 1 474.6 | 1 281.6 | 1 693.6 |
| Tax receivables | T | 1.7 | 2.4 | 25.0 |
| Current operative receivables | O | 1 621.8 | 1 362.6 | 1 583.2 |
| Interest-bearing receivables | I | 285.1 | 221.2 | 251.1 |
| Cash and cash equivalents | I | 1 110.9 | 890.4 | 415.8 |
| 4 494.1 | 3 758.2 | 3 968.7 | ||
| Total Assets | 13 036.7 | 11 593.2 | 12 240.8 | |
| Equity and Liabilities | ||||
| Equity Attributable to Owners of the Parent | ||||
| Share capital | 1 342.2 | 1 342.2 | 1 342.2 | |
| Share premium | 76.6 | 76.6 | 2 276.4 | |
| Treasury shares | -10.2 | -10.2 | -10.2 | |
| Other comprehensive income | 852.0 | 668.3 | 334.0 | |
| Cumulative translation adjustment | 103.7 | -194.6 | -443.8 | |
| Invested non-restricted equity fund | 633.1 | 2 042.1 | - | |
| Retained earnings | 2 439.5 | 2 079.6 | 2 768.8 | |
| Net profit / (loss) for the period | 766.0 | -879.7 | -673.4 | |
| 6 202.9 | 5 124.3 | 5 594.0 | ||
| Non-controlling Interests | 51.8 | 58.2 | 56.5 | |
| Total Equity | 6 254.7 | 5 182.5 | 5 650.5 | |
| Non-current Liabilities | ||||
| Post-employment benefit provisions | O | 320.5 | 305.0 | 299.0 |
| Other provisions | O | 148.6 | 180.4 | 202.3 |
| Deferred tax liabilities | T | 422.6 | 364.4 | 277.5 |
| Non-current debt | I | 3 259.2 | 2 898.4 | 3 007.8 |
| Other non-current operative liabilities | O | 62.0 | 43.1 | 28.5 |
| 4 212.9 | 3 791.3 | 3 815.1 | ||
| Current Liabilities | ||||
| Current portion of non-current debt | I | 303.5 | 814.8 | 437.4 |
| Interest-bearing liabilities | I | 440.7 | 210.1 | 587.7 |
| Bank overdrafts | I | 7.8 | 13.4 | 43.2 |
| Current operative liabilities | O | 1 697.1 | 1 473.0 | 1 602.1 |
| Tax liabilities | T | 120.0 | 108.1 | 104.8 |
| 2 569.1 | 2 619.4 | 2 775.2 | ||
| Total Equity and Liabilities | 13 036.7 | 11 593.2 | 12 240.8 |
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 2010.
Condensed Consolidated Cash Flow Statement
| Year Ended 31 December | ||||
|---|---|---|---|---|
| EUR million | 2010 | 2009 | 2008 | |
| Cash Flow from Operating Activities | ||||
| Total Operations | ||||
| Operating profit/(loss) | 1 026.8 | -607.6 | -714.8 | |
| Hedging result from OCI | 97.3 | 233.4 | -280.9 | |
| Adjustments for non-cash items | 172.4 | 1 262.0 | 1 454.0 | |
| Change in net working capital | -271.7 | 638.0 | 81.5 | |
| Cash Flow Generated by Operations | 1 024.8 | 1 525.8 | 539.8 | |
| Net financials items paid | -150.9 | -220.3 | 47.2 | |
| Income taxes (paid) / received | -62.0 | -3.0 | 25.5 | |
| Net Cash Provided by Operating Activities | 811.9 | 1 302.5 | 612.5 | |
| Cash Flow from Investing Activities | ||||
| Acquisitions of subsidiaries | -13.0 | -8.4 | -4.5 | |
| Acquisitions of equity accounted investments | -16.3 | -128.5 | -53.9 | |
| Proceeds from sale of fixed assets and shares | 24.2 | 98.0 | 230.3 | |
| Capital expenditure | -400.4 | -423.7 | -706.6 | |
| Proceeds / (payment of) the non-current receivables, net | 42.9 | -24.2 | -16.2 | |
| Net Cash Used in Investing Activities | -362.6 | -486.8 | -550.9 | |
| Cash Flow from Financing Activities | ||||
| Proceeds from new long-term debt | 791.8 | 636.1 | 303.6 | |
| Repayment of long-term liabilities | -1 180.6 | -411.3 | -634.2 | |
| Proceeds from (payment of) current borrowings, net | 318.5 | -359.9 | 4.0 | |
| Dividends and capital repayments paid | -157.7 | -157.7 | -354.9 | |
| Equity injections less dividends to non-controlling interests | -1.2 | -7.7 | -4.2 | |
| Net Cash Used in Financing Activities | -229.2 | -300.5 | -685.7 | |
| Net Increase / (Decrease) in Cash and Cash Equivalents | 220.1 | 515.2 | -624.1 | |
| Cash and bank in acquired companies | 0.5 | 4.4 | - | |
| Cash and bank in divested companies | -2.9 | -0.1 | -31.3 | |
| Translation adjustment | 8.4 | -15.1 | 148.7 | |
| Net Cash and cash equivalents at the beginning of year | 877.0 | 372.6 | 879.3 | |
| Net Cash and Cash Equivalents at Year End | 1 103.1 | 877.0 | 372.6 | |
| Cash and Cash Equivalents at Year End | 1 110.9 | 890.4 | 415.8 | |
| Bank Overdrafts at Year End | -7.8 | -13.4 | -43.2 | |
| Net Cash and Cash Equivalents at Year End | 1 103.1 | 877.0 | 372.6 |
Auditor's Report
To the Annual General Meeting of Stora Enso Oyj
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 financial period 1.1.-31.12.2010. The financial statements comprise of 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 responsibility of the Board of Directors and the Chief Executive Officer
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 and 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, 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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, 18 February 2011
Deloitte & Touche Oy
Authorized Public Audit Firm
Mikael Paul
APA
This Auditor's Report is a copy of the Auditor's Report included in a separate document, Financial Report 2010.
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| Concept and design: Miltton Oy |
|---|
| Teemu Kuusimurto, Visuamo/Jenni-Justiina Niemi, Riitta Supperi |
| Libris Oy |
| LumiArt 170 g/m², Stora Enso, Oulu Mill (ISO 14001 certified) |
| LumiArt 115 g/m², Stora Enso, Oulu Mill (ISO 14001 certified) |
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.
Global Responsibility – Stora Enso Sustainability Report 2010
Describes Stora Enso's sustainability activities relating to the company's mills, products, stakeholders, wood and fibre sourcing, climate and energy, the environment, and social responsibility. The report follows Global Reporting Initiative (GRI) guidelines.
Financial Performance – Stora Enso Financial Report 2010
Contains in-depth information about Stora Enso's financial performance, corporate governance as well as the capital markets. Includes 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
www.storaenso.com