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Stora Enso's Historical Figures According to IFRS 11 Joint Arrangements

HELSINKI, Finland, March 19, 2014 (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 19 March 2014 at 9.00 EET

Stora Enso adopted the new IFRS 11 Joint Arrangements as of 1 January 2014. The change affects the accounting treatment of Montes del Plata and Veracel which are now treated as joint operations and thus Stora Enso's 50% ownership is consolidated with the line-by-line method. Previously these two entities were consolidated using the equity method.

The line by line consolidation of Stora Enso's 50% ownership of Montes del Plata and Veracel has no impact on published operational EBIT, net profit, equity or earnings per share. The line by line consolidation impacts all the primary statements in the consolidated financial statements. The impacts are summarised below:

  • Increase in operational EBITDA
  • Increase in property, plant and equipment, biological assets and net debt
  • Decrease in equity accounted investment
  • Increase in capital expenditure and decreases in equity injections to equity accounted investments.


Historical figures according to the new standard are presented in the tables below. Additionally, the Group has revised the presentation of the cash flow statement to reflect better the underlying cash movements.

CTA = Cumulative Translation Adjustment, EAI = Equity Accounted Investments, NCI = Non-controlling Interests,
NRI = Non-recurring Items, OCI = Other Comprehensive Income


Effects of Changes to IFRS 11 Joint Arrangements

Restated Change As published
EUR million 2013 2012 2013 2012 2013 2012
Sales 10 563 10 837 19 22 10 544 10 815
Operational EBITDA 1 090 1 154 46 60 1 044 1 094
Operational EBIT 578 630 - - 578 630
Operating profit (IFRS) 50 716 16 15 34 701
Net profit/loss for the period -71 490 - - -71 490
Capital expenditure 760 1 012 335 456 425 556
Depreciation and impairment charges excl. NRI 603 623 39 40 564 583
Operational ROCE, % 6.5 6.9 -0.6 -0.4 7.1 7.3
Return on equity (ROE), % -1.3 8.3 - - -1.3 8.3
Debt/equity ratio 0.61 0.58 0.14 0.10 0.47 0.48
Net debt/last twelve months' operational EBITDA 2.9 2.9 0.6 0.4 2.3 2.5
Equity ratio, % 39.2 41.0 -2.1 -1.8 41.3 42.8
Capital structure
Operative fixed assets 6 824 7 520 1 590 1 498 5 234 6 022
Equity accounted investments 1 013 941 -948 -1 024 1 961 1 965
Operative working capital, net 1 179 1 526 94 66 1 085 1 460
Non-current interest-free items, net -466 -551 33 60 -499 -611
Operating Capital Total 8 550 9 436 769 600 7 781 8 836
Net tax liabilities -86 -237 -12 -20 -74 -217
Capital Employed 8 464 9 199 757 580 7 707 8 619
Equity attributable to owners of the Parent 5 213 5 770 - - 5 213 5 770
Non-controlling interests 60 92 - - 60 92
Net interest-bearing liabilities 3 191 3 337 757 580 2 434 2 757
Financing Total 8 464 9 199 757 580 7 707 8 619


Key Figures - Restated

EUR million 2013 Q4/13 Q3/13 Q2/13 Q1/13 2012
Sales 10 563 2 612 2 553 2 726 2 672 10 837
Operational EBITDA 1 090 260 319 257 254 1 154
Operational EBITDA margin, % 10.3 10.0 12.5 9.4 9.5 10.6
Operational EBIT 578 152 184 124 118 630
Operational EBIT margin, % 5.5 5.8 7.2 4.5 4.4 5.8
Operating profit (IFRS) 50 -210 156 83 21 716
Operating margin (IFRS), % 0.5 -8.0 6.1 3.0 0.8 6.6
Profit before tax excl. NRI 350 111 126 57 56 314
Loss/profit before tax -189 -281 103 24 -35 478
Net profit for the period excl. NRI 323 118 104 45 56 263
Net loss/profit for the period -71 -160 84 21 -16 490
Capital expenditure 760 278 168 184 130 1 012
Depreciation and impairment charges excl. NRI 603 136 157 154 156 623
Operational ROCE, % 6.5 7.0 8.3 5.4 5.1 6.9
Earnings per share (EPS) excl. NRI, EUR 0.40 0.15 0.13 0.05 0.07 0.33
EPS (basic), EUR -0.07 -0.18 0.11 0.02 -0.02 0.61
Cash earnings per share (CEPS) excl. NRI, EUR 1.16 0.31 0.33 0.25 0.27 1.13
CEPS, EUR 1.21 0.46 0.31 0.21 0.23 1.35
Return on equity (ROE), % -1.3 -11.9 6.2 1.5 -1.1 8.3
Debt/equity ratio 0.61 0.61 0.64 0.68 0.61 0.58
Net debt/last twelve months' operational EBITDA 2.9 2.9 3.1 3.2 3.1 2.9
Equity per share, EUR 6.61 6.61 6.82 6.67 7.32 7.32
Equity ratio, % 39.2 39.2 39.2 38.7 40.7 41.0
Average number of employees 28 921 28 453 28 997 29 357 28 887 29 385



Reconciliation of Operational Profitability - Restated

EUR million 2013 Q4/13 Q3/13 Q2/13 Q1/13 2012
Operational EBITDA 1 090 260 319 257 254 1 154
Equity accounted investments (EAI), operational 91 28 22 21 20 99
Depreciation and impairment excl. NRI -603 -136 -157 -154 -156 -623
Operational EBIT 578 152 184 124 118 630
Fair valuations and non-operational items 11 30 -5 -8 -6 -44
Non-recurring items -539 -392 -23 -33 -91 130
Operating Profit/Loss (IFRS) 50 -210 156 83 21 716

Capital Structure - Restated

EUR million 31 Dec 13 30 Sep 13 30 Jun 13 31 Mar 13 31 Dec 12
Operative fixed assets 6 824 7 159 7 130 7 511 7 520
Equity accounted investments 1 013 1 003 982 980 941
Operative working capital, net 1 179 1 470 1 518 1 640 1 526
Non-current interest-free items, net -466 -534 -535 -544 -551
Operating Capital Total 8 550 9 098 9 095 9 587 9 436
Net tax liabilities -86 -196 -189 -216 -237
Capital Employed 8 464 8 902 8 906 9 371 9 199
Equity attributable to owners of the Parent 5 213 5 381 5 261 5 772 5 770
Non-controlling interests 60 86 88 89 92
Net interest-bearing liabilities 3 191 3 435 3 557 3 510 3 337
Financing Total 8 464 8 902 8 906 9 371 9 199



Cash Flow - Restated

EUR million 2013 Q4/13 Q3/13 Q2/13 Q1/13 2012
Operational EBITDA 1 090 260 319 257 254 1 154
NRI on Operational EBITDA 37 154 -23 -43 -51 18
Dividends received from EAI 38 18 2 7 11 102
Other adjustments -178 -168 1 8 -19 -25
Change in working capital 265 198 48 88 -69 45
Cash Flow from Operations 1 252 462 347 317 126 1 294
Cash spent on fixed and biological assets -740 -216 -182 -170 -172 -1 000
Acquisitions of equity accounted investments -31 - -1 -30 - -
Cash Flow after Investing Activities 481 246 164 117 -46 294



Condensed Consolidated Income Statement - Restated

EUR million 2013 Q4/13 Q3/13 Q2/13 Q1/13 2012
Sales 10 563 2 612 2 553 2 726 2 672 10 837
Other operating income 140 34 30 37 39 219
Materials and services -6 550 -1 488 -1 585 -1 765 -1 712 -6 890
Freight and sales commissions -982 -235 -237 -251 -259 -1 011
Personnel expenses -1 390 -349 -314 -368 -359 -1 373
Other operating expenses -644 -141 -149 -165 -189 -611
Share of results of equity accounted investments 102 49 15 13 25 117
Depreciation and impairment -1 189 -692 -157 -144 -196 -572
Operating Profit/Loss 50 -210 156 83 21 716
Net financial items -239 -71 -53 -59 -56 -238
Loss/Profit before Tax -189 -281 103 24 -35 478
Income tax 118 121 -19 -3 19 12
Net Loss/Profit for the Period -71 -160 84 21 -16 490

Condensed Consolidated Statement of Cash Flows - Restated

EUR million 2013 Q1-Q3/13 Q1-Q2/13 Q1/13 2012
Cash Flow from Operating Activities
Operating profit 50 260 104 21 716
Hedging result from OCI 7 - 10 -1 -2
Adjustments for non-cash items 937 463 320 174 533
Change in net working capital 265 67 19 -69 45
Cash Flow Generated by Operations 1 259 790 453 125 1 292
Net financial items paid -198 -134 -86 -66 -161
Income taxes paid, net -46 -33 -20 -3 -105
Net Cash Provided by Operating Activities 1 015 623 347 56 1 026
Cash Flow from Investing Activities
Acquisitions of subsidiaries and business operations, net of acquired cash 25 - - - -11
Acquisitions of equity accounted investments -31 -31 -30 - -
Acquisitions of available-for-sale investments -9 -9 -9 - -
Proceeds from sale of fixed assets and shares, net of disposed cash 96 87 81 18 11
Proceeds from disposal of available-for-sale investments 42 43 - - -
Capital expenditure -740 -524 -342 -172 -1 000
Proceeds from/payments of non-current receivables, net 85 107 98 2 -4
Net Cash Used in Investing Activities -532 -327 -202 -152 -1 004
Cash Flow from Financing Activities
Proceeds from issue of new long-term debt 239 223 66 - 1 766
Long-term debt, payments -415 -189 -44 -39 -604
Change in short-term borrowings 108 131 47 -15 -155
Dividends paid -237 -237 -237 - -237
Dividend to non-controlling interests -7 -6 -6 -7 -3
Net Cash Used in/Provided by Financing Activities -312 -78 -174 -61 767
Net Increase/Decrease in Cash and Cash Equivalents 171 218 -29 -157 789
Translation adjustment -27 -16 -20 3 -28
Net cash and cash equivalents at the beginning of period 1 917 1 917 1 917 1 917 1 156
Net Cash and Cash Equivalents at Period End 2 061 2 119 1 868 1 763 1 917
Cash and Cash Equivalents at Period End 2 073 2 121 1 869 1 764 1 921
Bank Overdrafts at Period End -12 -2 -1 -1 -4
Net Cash and Cash Equivalents at Period End 2 061 2 119 1 868 1 763 1 917

Condensed Consolidated Statement of Financial Position - Restated

EUR million 31 Dec 13 30 Sep 13 30 Jun 13 31 Mar 13 31 Dec 12
Assets
Non-current Assets
PPE*, goodwill and other intangible assets O 5 808 6 332 6 370 6 573 6 565
Biological assets O 634 454 466 496 474
Emission rights O 21 18 15 35 30
Equity accounted investments O 1 013 1 003 982 980 941
Available-for-sale: Interest-bearing I 10 10 105 100 96
Available-for-sale: Operative O 361 355 279 407 451
Non-current loan receivables I 80 79 37 137 134
Deferred tax assets T 229 165 162 169 143
Other non-current assets O 63 70 69 80 85
8 219 8 486 8 485 8 977 8 919
Current Assets
Inventories O 1 445 1 515 1 510 1 610 1 510
Tax receivables T 13 14 15 18 18
Operative receivables O 1 555 1 676 1 787 1 851 1 714
Interest-bearing receivables I 147 137 151 196 211
Cash and cash equivalents I 2 073 2 121 1 869 1 764 1 921
5 233 5 463 5 332 5 439 5 374
Total Assets 13 452 13 949 13 817 14 416 14 293
Equity and Liabilities
Owners of the Parent 5 213 5 381 5 261 5 772 5 770
Non-controlling Interests 60 86 88 89 92
Total Equity 5 273 5 467 5 349 5 861 5 862
Non-current Liabilities
Post-employment benefit provisions O 378 465 461 470 480
Other provisions O 127 124 133 145 145
Deferred tax liabilities T 312 331 337 361 358
Non-current debt I 4 163 4 333 4 260 4 817 4 799
Other non-current operative liabilities O 24 15 10 9 11
5 004 5 268 5 201 5 802 5 793
Current Liabilities
Current portion of non-current debt I 544 644 732 221 202
Interest-bearing liabilities I 794 805 727 669 698
Operative liabilities O 1 821 1 721 1 779 1 821 1 698
Tax liabilities T 16 44 29 42 40
3 175 3 214 3 267 2 753 2 638
Total Liabilities 8 179 8 482 8 468 8 555 8 431
Total Equity and Liabilities 13 452 13 949 13 817 14 416 14 293


* PPE = Property, Plant and Equipment

Items designated with "O" comprise Operating Capital
Items designated with "I" comprise Interest-bearing Net Liabilities
Items designated with "T" comprise Net Tax Liabilities


For further information, please contact:
Seppo Parvi, CFO, tel. +358 2046 21205
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242

www.storaenso.com
www.storaenso.com/investors


Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging 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. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

STORA ENSO OYJ

Source:Stora Enso Oyj

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