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Stora Enso 2012

Facts & Figures2 Key figures3 Stora Enso in brief4 Business Areas6 Map8 Board of Directors and Group Executive Team10 Extract of the Consolidated Financial Statements14 Auditor’s Report15 Information for shareholders

2 Stora Enso Facts & Figures 2012 Stora Enso Facts & Figures 2012 3

Key figures

* 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 related to forest assets in EAI.

** 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 specified individually if they exceed one cent per share.

*** Board's proposal for dividend distribution.

Stora Enso in briefStora 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 2012 amounted to EUR 10.8 billion.

Stora Enso’s annual production capacity is 5.2 million tonnes of chemical pulp, 12.1 million tonnes of paper and board, 1.3 billion square

metres of corrugated packaging and 6.0 million cubic metres of sawn wood products, including 3.0 million cubic metres of value-added

products. The Group is listed in Helsinki and Stockholm.

Employees by country 2012

Finland 23 %

Sweden 21 %

Germany 8 %

Poland 7%

Russia 4 %

Other Europe 17 %

China 15%

Other countries 5 %

Paper and board capacity by country 2013

Finland 38 %

Sweden 28 %

Germany 13 %

China 4%

Brazil 2 %

Other countries 15%

* Including Stora Enso's share of equity accounted investments

Chemical Pulp capacity by country 2013*

Finland 58 %

Sweden 24 %

Brazil 11 %

Uruguay 5%

Poland 2 %

Sales and operational EBIT margin

2012 2011 Sales EUR 10 814.8 million Operational EBIT margin 5.7%

Sales EUR 10 964.9 million Operational EBIT margin 7.9%

Earnings and distribution per share

Excluding non-recurring itemsEUR

1.5

1.2

0.9

0.6

0.3

0.0

09 10 11 12

Earnings per share

Dividend per share

Board's proposal for dividend

Cash earnings per share

CO2 performance*

* 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.

Million tonnes kg/tonne

08 09 10 11 12

Million tonnes kg/tonne

8

7

6

5

4

3

500

460

420

380

340

300

Key figuresEUR million 2012 2011

Sales 10 814.8 10 964.9

Operational EBIT* 618.3 866.7

Operating profit (IFRS) 689.0 759.3

Profit before tax excl. NRI** 318.5 639.1

Profit before tax 481.7 420.9

Net profit for the period excl. NRI** 263.9 498.2

Net profit for the period 490.4 342.2

Capital expenditure 556.3 453.3

Operational ROCE, % 7.1 10.0

Return on equity (ROE), % 8.3 5.6

Debt/equity ratio 0.48 0.47

Paper and board deliveries, 1 000 tonnes 10 268 10 330

Corrugated packaging deliveries, million m2 1 097 1 018

Wood products deliveries, 1 000 m3 4 750 5 072

Average number of employees 28 777 27 958

Share information2012 2011

Earnings per share (EPS) excl. NRI**, EUR 0.33 0.63

Earnings per share (EPS), EUR 0.61 0.43

Cash earnings per share (CEPS) excl. NRI**, EUR 1.07 1.33

Cash earnings per share (CEPS), EUR 1.28 1.16

Dividend per share***, EUR 0.30 0.30

Equity/share, EUR 7.33 7.45

Payout ratio, excluding NRI**, % 91 48

Total market capitalisation at 31 December, EUR million 4 222 3 726


Business Areas in brief

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 2013, 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.

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.

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.

Biomaterials

Printing and Reading

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.

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.

Printing and Reading has production facilities mainly in Europe,

but it also has one mill in Brazil and two in China. Three of the

16 mills produce paper based on 100% recycled fibre.

* 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.

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.

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.

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 plans to 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.

Renewable Packaging

Building and Living

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.

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.

Geographical distribution of external sales and market shareExternal sales and operational EBIT* by segments

Printing and Reading 43%

Biomaterials 5%

Building and Living 15%

Renewable Packaging 29 %

Other 8%**

Printing and Reading 35%

Biomaterials 13%

Building and Living 5%

Renewable Packaging 44 %

Other 3%**

Sales EUR 10 814.8 million Operational EBIT EUR 618.3 million

Biomaterials

Printing and Reading

EuropeAsia

PacificRest of the

world

Geographical distribution (% of sales) 70 24 6

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

Building and Living Europe

Asia Pacific

North Africa

Middle East

Geographical distribution (% of sales) 60 23 8 9

Market share: Europe 4%, worldwide 2%.

EuropeLatin

AmericaAsia

PacificRest of the

world

Geographical distribution (% of sales) 76 7 11 6

Market share % 15 6 2

Renewable Packaging Europe Asia Pacific Rest of the world

Geographical distribution (% of sales) 77 15 8

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


Laos

BiomaterialsTrial plantation

Russia

1 233 employees

Building and LivingImpilahtiNebolchi

Renewable PackagingArzamasBalabanovoLukhovitsy

India

474 employees

Renewable PackagingChennai

Finland

6 383 employees

Printing and ReadingAnjalaOuluVarkausVeitsiluoto

BiomaterialsEnocellSunila

Building and LivingHonkalahtiKiteePälkäneUimaharjuVarkaus

Renewable PackagingHeinolaImatraIngeroisKristiinan-kaupunkiLahtiLoviisaPoriRuovesi

Poland

2 039 employees

Building and LivingMurow

Renewable PackagingŁódzMosinaOstrołękaTychy

Printing and ReadingHylteKvarnsvedenNymölla

BiomaterialsSkutskär

Building and LivingAlaGruvön

Renewable PackagingBäckeforsForsForshagaJönköpingMohedSkeneSkoghallVikingstad

Sweden

5 919 employees

BrazilLatin 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 of 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

45 000 hectares of land, around half of

which is planted with eucalyptus.

EuropeMost 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.

UruguayStora Enso and Arauco's joint venture

company Montes del Plata started

building a pulp mill at Punta Pereira

in 2011. The new mill, producing 1.3

million tonnes of pulp per year, is

expected to be operational by mid-

year 2013. Employees in Uruguay

are working for the joint venture. The

eucalyptus pulpwood will be sourced

essentially from plantations on

Montes del Plata’s own approx.

246 000 hectares of land.

BiomaterialsMontes del Plata

Estonia

687 employees

Building and LivingImavereNäpi

Renewable PackagingTallinn

Lithuania

250 employees

Building and LivingAlytus

Renewable PackagingKaunas

Czech Republic

743 employees

Building and LivingPlanáZdírec

Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. The Group has employees and production facilities in more than 35 countries worldwide. Stora Enso focuses on four key areas: growth markets in Asia and Latin America, as well as fibre-based packaging, plantation-based pulp and competitive paper grades.

Employees and production facilities

USA

180 employees

Renewable PackagingWisconsin Rapids

Netherlands

108 employees

Building and LivingAmsterdam

Renewable PackagingEdam

Spain

300 employees

Renewable PackagingBarcelonaTolosa

France

472 employees

Printing and ReadingCorbehem

Renewable PackagingSaint Seurin sur l’Isle

Great Britain

155 employees

Renewable PackagingBolton

Belgium

601 employees

Printing and ReadingLangerbrugge

Latvia

274 employees

Building and LivingLaunkalne

Renewable PackagingRiga

Germany

2 284 employees

Printing and ReadingKabelMaxauSachsenUetersen

Building and LivingPfarrkirchen

Renewable PackagingKrefeld

Austria

1 094 employees

Building and LivingBad St. LeonhardBrandSollenauYbbs

Hungary

130 employees

Renewable PackagingKomárom

China

4 262 employees

Printing and ReadingDawangSuzhou

Renewable PackagingDongguanFoshanGuangxiHangzhouQian’an

383 employees

Printing and ReadingArapoti

BiomaterialsRio Grande do SulVeracel * The joint venture Bulleh Shah Packaging (Private) Limited will employ about 950 people.

AsiaThe rapidly expanding Asian paper and paperboard market offers huge demand for Stora Enso’s

products. In March 2012, the company announced it plans to build plantation-based integrated

board and pulp mills at Beihai city in Guangxi, southern China. The mill site will initially include a

450 000 tonnes per year state-of-the-art paperboard machine and pulp capacity of 900 000 tonnes

per year, including necessary energy plant and auxiliary facilities. The board and pulp mills will be

self-sufficiently integrated with wood supply from 120 000 hectares of self-managed eucalyptus

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 September 2012 Stora Enso signed an agreement to establish a joint venture called Bulleh Shah

Packaging (Private) Limited with Packages Ltd. of Pakistan. Stora Enso’s initial shareholding is 35%.

The joint venture will include the packaging operations of the Kasur mill and Karachi plant currently

owned by Packages Ltd. Transaction is expected to be completed during the first quarter of 2013.

Pakistan*

Renewable PackagingKasurKarachi


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 39 362 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

25 338 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 in 1955. Bachelor’s degree (honours)

in Mechanical Engineering. Singaporean

citizen. Owns 5 783 R shares in Stora Enso.

Jouko Karvinen

Chief Executive Officer (CEO) of Stora

Enso. Born 1957. M.Sc. (Eng.). Finnish

citizen. Owns 237 009 R shares and has

157 646 (2006–2007) options/synthetic

options in Stora Enso.

Karl-Henrik Sundström

Chief Financial Officer (CFO) of Stora

Enso. Born 1960. B.Sc. (Business Studies).

Swedish citizen. Does not own any Stora

Enso shares nor options.

Juan Carlos Bueno

Executive Vice President, Biomaterials,

Head of Latin America. 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.

Birgitta Kantola


since March 2005. Independent of the


Born 1948. LL.M., Econ.Dr.H.C. Finnish

citizen. Owns 21 988 R shares in

Stora Enso.

Mikael Mäkinen




Born 1956. M.Sc. (Eng.). Finnish citizen.


Hans Stråberg


since April 2009. Independent of the


Born 1957. M.Sc. (Eng.). Swedish citizen.


Matti Vuoria




Hannu Kasurinen

Executive Vice President, Building and

Living. Born 1963. M.Sc. (Econ.). Finnish

citizen. Owns 50 693 R shares and has

18 750 (2006–2007) options/synthetic


Per Lyrvall

Executive Vice President, Global Ethics

and Compliance, General Counsel. Born

1959. Swedish Master of Laws Degree.

Swedish citizen. Owns 19 205 R shares

and 5 000 (2006–2007) options/synthetic


Mats Nordlander

Executive Vice President, Renewable

Packaging, Regional Head of Asia Pacific

and Country Manager Sweden. Born 1961.

Dipl.Eng. Swedish citizen. Owns 67 002

R shares and has 15 000 (2006–2007)

options/synthetic options in Stora Enso.

Lauri Peltola

Executive Vice President, Global Identity.

Born 1963. CCJ. Finnish citizen. Owns

26 255 R shares in Stora Enso.

Group Executive Team Board of Directors

Jouko Karvinen

Karl-Henrik Sundström

Hannu KasurinenLars Häggström

Per Lyrvall

Mats Nordlander

Lauri Peltola

Juha Vanhainen

Juan Carlos Bueno

Born 1951. LL.M., B.Sc. (Arts). Finnish

citizen. Owns 27 488 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 23 203 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 14-year membership of the Board of Directors.

Juha Vanhainen

Executive Vice President, Printing and

Reading, Country Manager Finland.

Born 1961. M.Sc. (Eng.). Finnish citizen.

Owns 58 314 R shares and has 18 750

(2006–2007) options/synthetic options in

Stora Enso.

Hannu Alalauri, Executive Vice President, Fine Paper and Bernd Rettig, Executive Vice President, R&D, Technology, Energy, Logistics and Investments, were members of the Group Executive Team until the reorganisation of the company on 19 March 2012.

Markus Rauramo, Chief Financial Officer (CFO) was a member of the Group Executive Team until his resignation on 31 July 2012.

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

Photos on the spread: Jenni-Justiina Niemi

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.

First Lastneme

Gunnar BrockJuha Rantanen

Matti VuoriaHans Stråberg

Marcus WallenbergHock Goh

Mikael MäkinenBirgitta Kantola


This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2012.

Extract of the Consolidated Financial Statements

This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2012.

Consolidated Income StatementYear Ended 31 December

EUR million 2012 2011

Sales 10 814.8 10 964.9

Other operating income 218.8 208.9

Changes in inventories of finished goods and work in progress -6.9 31.7

Change in net value of biological assets -5.0 -5.1

Materials and services -6 962.2 -6 998.5

Freight and sales commissions -1 007.5 -1 018.9

Personnel expenses -1 360.8 -1 393.9

Other operating expenses -578.3 -575.2

Share of results of equity accounted investments 107.7 118.0

Depreciation, amortisation and impairment charges -531.6 -572.6

Operating Profit 689.0 759.3

Financial income 128.2 42.9

Financial expense -335.5 -381.3

Profit before Tax 481.7 420.9

Income tax 8.7 -78.7

Net Profit for the Year 490.4 342.2

Attributable to:

Owners of the Parent 480.5 339.7

Non-controlling Interests 9.9 2.5

Net Profit for the Year 490.4 342.2

Earnings per Share

Basic and diluted earnings per share, EUR 0.61 0.43

Consolidated Statement of Comprehensive IncomeYear Ended 31 December



Other Comprehensive Income (OCI)

Actuarial losses on defined benefit plans -167.3 -55.8

Available-for-sale financial assets -177.6 -240.5

Currency and commodity hedges 33.6 -128.4

Share of other comprehensive income of equity accounted investments -4.2 -19.4

Currency translation movements on equity net investments (CTA) -29.4 -76.2

Currency translation movements on non-controlling interests -3.2 -

Net investment hedges -16.8 6.0

Income tax relating to components of other comprehensive income 29.6 40.8

Other Comprehensive Income, net of tax -335.3 -473.5

Total Comprehensive Income 155.1 -131.3

Total Comprehensive Income Attributable to:

Owners of the Parent 148.4 -133.8

Non-controlling interests 6.7 2.5

155.1 -131.3


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 2012. This financial information has been extracted from the audited financial statements included in a separate document, Financial Report 2012.

Consolidated Statement of Financial PositionAs at 31 December


ASSETS

Fixed Assets and Other Non-current Investments

Goodwill O 225.9 224.3

Other intangible fixed assets O 44.6 57.8

Property, plant and equipment O 5 048.7 4 942.5

5 319.2 5 224.6

Biological assets O 221.7 212.6

Emission rights O 29.6 43.0

Equity accounted investments O 1 965.1 1 913.1

Available-for-sale: interest-bearing I 95.9 82.0

Available-for-sale: operative O 450.6 640.2

Non-current loan receivables I 134.2 125.3

Deferred tax assets T 143.1 121.9

Other non-current assets O 23.1 26.6

8 382.5 8 389.3

Current Assets

Inventories O 1 457.5 1 528.7

Tax receivables T 18.5 6.2

Current operative receivables O 1 688.2 1 654.6

Interest-bearing receivables I 297.0 281.5

Cash and cash equivalents I 1 849.9 1 138.8

5 311.1 4 609.8

Total Assets 13 693.6 12 999.1

EqUITY ANd LIABILITIES

Equity Attributable to Owners of the Parent

Share capital 1 342.2 1 342.2

Share premium 76.6 76.6

Treasury shares -10.2 -10.2

Other comprehensive income 343.4 498.1

Cumulative translation adjustment -10.1 32.0

Invested non-restricted equity fund 633.1 633.1

Retained earnings 2 929.0 2 961.2


5 784.5 5 872.7

Non-controlling Interests 91.5 87.1

Total Equity 5 876.0 5 959.8

Non-current Liabilities

Post-employment benefit provisions O 461.6 333.1

Other provisions O 142.0 147.7

Deferred tax liabilities T 343.8 401.0

Non-current debt I 4 341.3 3 339.4

Other non-current operative liabilities O 11.7 31.9

5 300.4 4 253.1

Current Liabilities

Current portion of non-current debt I 181.0 250.0

Interest-bearing liabilities I 607.0 779.5

Bank overdrafts I 4.5 4.5

Current operative liabilities O 1 685.6 1 678.7

Tax liabilities T 39.1 73.5

2 517.2 2 786.2

Total Equity and Liabilities 13 693.6 12 999.1

Consolidated Cash Flow StatementYear Ended 31 December


Cash Flow from Operating Activities

Net profit for the year 490.4 342.2

Result from the Statement of Other Comprehensive Income 33.7 -127.3

Adjustments and reversal of non-cash items:

Taxes -8.7 78.7

Depreciation and impairment charges 531.6 572.6

Change in value of biological assets 5.0 5.1

Change in fair value of options and TRS -26.1 9.8

Share of results of equity accounted investments -107.7 -118.0

Profits and losses on sale of fixed assets and investments 4.8 -1.6

Net financial items 207.3 338.4

Pension adjustment -18.3 -

Dividends received from equity accounted investments 102.0 24.1

Interest received 16.8 23.6

Interest paid -168.4 -129.3

Income received on interest-bearing securities 0.1 0.2

Other financial items, net -78.7 -19.3

Income taxes paid -103.6 -129.1

Change in net working capital, net of businesses acquired or sold 55.4 -173.3

Net Cash Provided by Operating Activities 935.6 696.8

Cash Flow from Investing Activities

Acquisition of subsidiary shares and business operations, net of acquired cash -11.3 -25.0

Acquisition of shares in equity accounted investments -114.5 -128.6

Acquisition of available-for-sale investments -0.3 -0.6

Capital expenditure -541.0 -392.4

Investment in biological assets -19.7 -17.2

Proceeds from disposal of shares in equity accounted investments and equity repayment 2.2 -

Proceeds from disposal of available-for-sale investments 0.5 1.0

Proceeds from sale of fixed assets 5.7 21.7

Payment of/proceeds from non-current receivables, net -5.3 -4.0

Net Cash Used in Investing Activities -683.7 -545.1

Cash Flow from Financing Activities

Proceeds from new long-term debt 1 471.5 61.7

Repayment of long-term liabilities -570.7 -83.3

Change in current borrowings -179.3 131.2

Dividends paid -236.6 -197.2

Equity injections less dividends to non-controlling interest -2.5 -3.6

Net Cash Provided by/Used in Financing Activities 482.4 -91.2

Net Increase in Cash and Cash Equivalents 734.3 60.5

Translation adjustment -23.2 -29.3

Cash and cash equivalents at beginning of year 1 134.3 1 103.1

Net Cash and Cash Equivalents at Year End 1 845.4 1 134.3

Cash and Cash Equivalents at Year End 1 849.9 1 138.8

Bank Overdrafts at Year End -4.5 -4.5

1 845.4 1 134.3


Auditor’s Report Information for shareholdersAnnual General Meeting (AGM)Stora Enso Oyj’s AGM will be held at 16.00 (Finnish time)

on Tuesday 23 April 2013 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 register

of shareholders on the record date, 11 April 2013. 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.

AGM and dividend in 201311 April Record date for AGM

23 April Annual General Meeting (AGM)

24 April Ex-dividend date

26 April Record date for dividend

15 May Dividend payment effective

DividendThe 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 2012. 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 20135 February Financial results for 201218 February Annual Report 201223 April Interim Review for January–March19 July Interim Review for January–June 22 October Interim Review for January–September

Distribution of financial information Stora Enso’s Annual Report is comprised of four separate reports:

Rethink Stora Enso 2012, Financial Report 2012, Corporate

Governance Report 2012 and Global Responsibility Report 2012.

Rethink Stora Enso 2012 is published in English, Finnish and

Swedish, and distributed to shareholders registered with Euroclear

Finland and Euroclear Sweden who have requested a copy.

Rethink Stora Enso 2012 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.

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, 2012. 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.

Responsibility of the Board of Directors and the Chief Executive OfficerThe 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 ResponsibilityOur 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.

Corporate Governance Report 2012 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.

Global Responsibility 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

• 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.

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): +1 866 249 2593

[email protected]

ContactsUlla Paajanen-Sainio

SVP, Investor Relations

Stora Enso Oyj, P.O. Box 309, FI-00101 Helsinki, Finland

Tel. +358 2046 21242, [email protected]

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 statementsIn 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 opinionsWe 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 2013

deloitte & Touche Oy

Authorized Public Audit Firm

Mikael Paul

APA

To the Annual General Meeting of Stora Enso Oyj

This Auditor’s Report is a copy of the Auditor’s Report included in a separate document, Financial Report 2012.

Stora Enso OyjP.O. Box 309FI-00101 Helsinki, FinlandVisiting address: Kanavaranta 1Tel. +358 2046 131

Stora Enso ABP.O. Box 70395SE-107 24 Stockholm, SwedenVisiting address: World Trade CenterKlarabergsviadukten 70Tel. +46 1046 46 000

storaenso.comfacebook.com/storaensotwitter.com/storaenso

[email protected]

Stora Enso Global

Responsibility Report 2012

Find out more about Stora Enso’s

performance on issues related to

sustainability in this in-depth report,

which follows guidelines defined by

the Global Reporting Initiative (GRI).

Stora Enso Financial Report 2012

Contains detailed information on

Stora Enso’s financial performance

and corporate governance, as well

as the capital markets. This

includes consolidated financial

statements and notes, and the

report of the Board of Directors.

GlobalResponsibility Report

Stora Enso 2012

FinancialReport

Stora Enso 2012

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