Planting for Our Future
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“planting for our future... ...for profit” Stora Enso financial performance2009 financial Enso Stora Stora Enso is a global paper, packaging and wood products “planting for our future... “planting for our future... company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Group has some 27 000 employees and 88 production facilities in more than 35 countries worldwide, and is a publicly traded company listed in Helsinki and Stockholm. Our customers include publishers, printing houses and paper merchants, as well as the packaging, joinery and construction industries. Our annual production capacity is 12.7 million tonnes of paper and board, 1.5 billion square metres of corrugated packaging and 6.9 million cubic metres of sawn wood products, including Stora Enso 2009 sustainability performance 2009 3.1 million cubic metres of value-added products. Our sales in 2009 were EUR 8.9 billion, with an operating profit excluding Stora Enso 2009 non-recurring items and fair valuations of EUR 320.5 million. Focuses on Stora Enso and its financial performance, and provides an overview of developments relating to the company’s business areas and increased presence in Stora Enso’s company mission is to use and develop its expertise the new growth markets of Brazil, Uruguay and China. in renewable materials to meet the needs of its customers and many of today’s global raw material challenges. Our products Sustainability Performance 2009 provide a climate-friendly alternative to many products made Describes Stora Enso’s sustainability activities as they relate to its mills, stakeholders, from competing non-renewable materials, and have a smaller wood and fibre sourcing, environmental practices, climate action, social responsibility carbon footprint. Our solutions based on wood therefore have and product responsibility. This report follows the Global Reporting Initiative’s (GRI) wide-reaching benefits for us as a business, a people and guidelines. a planet. Sustainability – meaning economic, social and environmental responsibility – underpins our thinking and our approach to every aspect of doing business. Stora Enso will focus more on growth markets in China and Latin Stora Enso Oyj P.O. Box 309 America, and fibre-based packaging, plantation-based pulp and FI-00101 Helsinki, Finland selected paper grades. Fibre-based packaging offers steady Visiting address: Kanavaranta 1 long-term growth in most segments and has vast innovation Tel. +358 2046 131 Fax +358 2046 21471 opportunities, offering sustainable new solutions for our customers. Plantation-based pulp allows us to secure low-cost Stora Enso AB fibre for production. P.O. Box 70395 SE-107 24 Stockholm, Sweden Visiting address: World Trade Center Klarabergsviadukten 70 Tel. +46 1046 46 000 Fax +46 8 10 60 20 Stora Enso International Office 1 Sheldon Square London W2 6TT, UK Tel. +44 20 7121 0880 Fax +44 20 7121 0888 www.storaenso.com [email protected] financial performance 2009 “planting for our future... ...for profit” Stora Enso financial performance2009 financial Enso Stora Stora Enso is a global paper, packaging and wood products “planting for our future... “planting for our future... company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Group has some 27 000 employees and 88 production facilities in more than 35 countries worldwide, and is a publicly traded company listed in Helsinki and Stockholm. Our customers include publishers, printing houses and paper merchants, as well as the packaging, joinery and construction industries. Our annual production capacity is 12.7 million tonnes of paper and board, 1.5 billion square metres of corrugated packaging and 6.9 million cubic metres of sawn wood products, including Stora Enso 2009 sustainability performance 2009 3.1 million cubic metres of value-added products. Our sales in 2009 were EUR 8.9 billion, with an operating profit excluding Stora Enso 2009 non-recurring items and fair valuations of EUR 320.5 million. Focuses on Stora Enso and its financial performance, and provides an overview of developments relating to the company’s business areas and increased presence in Stora Enso’s company mission is to use and develop its expertise the new growth markets of Brazil, Uruguay and China. in renewable materials to meet the needs of its customers and many of today’s global raw material challenges. Our products Sustainability Performance 2009 provide a climate-friendly alternative to many products made Describes Stora Enso’s sustainability activities as they relate to its mills, stakeholders, from competing non-renewable materials, and have a smaller wood and fibre sourcing, environmental practices, climate action, social responsibility carbon footprint. Our solutions based on wood therefore have and product responsibility. This report follows the Global Reporting Initiative’s (GRI) wide-reaching benefits for us as a business, a people and guidelines. a planet. Sustainability – meaning economic, social and environmental responsibility – underpins our thinking and our approach to every aspect of doing business. Stora Enso will focus more on growth markets in China and Latin Stora Enso Oyj P.O. Box 309 America, and fibre-based packaging, plantation-based pulp and FI-00101 Helsinki, Finland selected paper grades. Fibre-based packaging offers steady Visiting address: Kanavaranta 1 long-term growth in most segments and has vast innovation Tel. +358 2046 131 Fax +358 2046 21471 opportunities, offering sustainable new solutions for our customers. Plantation-based pulp allows us to secure low-cost Stora Enso AB fibre for production. P.O. Box 70395 SE-107 24 Stockholm, Sweden Visiting address: World Trade Center Klarabergsviadukten 70 Tel. +46 1046 46 000 Fax +46 8 10 60 20 Stora Enso International Office 1 Sheldon Square London W2 6TT, UK Tel. +44 20 7121 0880 Fax +44 20 7121 0888 www.storaenso.com [email protected] financial performance 2009 Content Hard talk about Global Responsibility Stora Enso in Capital Markets 1 Corporate Governance in Stora Enso 8 Board of Directors 16 Group Executive Team 18 Report of the Board of Directors 20 Consolidated Financial Statements 33 Notes to the Consolidated Financial Statements Note 1: Accounting Principles 38 Note 2: Critical Accounting Estimates and Judgements 46 Note 3: Segment Information 48 Note 4: Acquisitions and Disposals 54 Note 5: Discontinued Operations 56 Note 6: Other Operating Income and Expenses 58 Note 7: Staff Costs 60 Note 8: Board & Executive Remuneration 61 Note 9: Net Financial Items 64 Note 10: Income Taxes 66 Note 11: Valuation Provisions 69 Note 12: Depreciation and Fixed Asset Impairment Charges 70 Note 13: Fixed Assets 73 Using paper = cutting down rainforests. True or False? Note 14: Biological Assets 76 Note 15: Equity Accounted Investments 77 This and other interesting topics discussed at our new interactive website available online Note 16: Available-for-Sale Investments 80 in April 2010. Take a look at how we see our role as a globally responsible company, learn Note 17: Other Non-Current Assets 82 to build a tree plantation and test your habits as a sustainable consumer. Note 18: Inventories 82 www.storaenso.com/globalresponsibility Note 19: Receivables 83 Note 20: Shareholders’ Equity 85 Note 21: Non-Controlling Interests 86 Note 22: Post-Employment Benefits 87 Note 23: Employee Bonus and Equity Incentive Schemes 92 Note 24: Other Provisions 94 Note 25: Operative Liabilities 97 Concept and design: Philips Design Photography: Tina Axelsson, Scala Photography and Stora Enso image bank Note 26: Financial Risk Management 98 Printing: Libris Oy 104 Note 27: Fair Values Cover stock: LumiSilk 350 g/m2, Stora Enso, Oulu Mill (ISO 14001 certified) Note 28: Debt 106 Text stock: MultiFine 80 g/m2, Stora Enso, Nymölla Mill (ISO 14001 certified) Note 29: Financial instruments 109 Note 30: Cumulative Translation Adjustment and Equity Hedging 112 This report is 100% recyclable - please recycle it when you no longer need it. Recycled fibres can be used in printing paper, board or household paper. Note 31: Commitments and Contingencies 115 Note 32: Principal Subsidiaries in 2009 118 Note 33: Related Party Transactions 120 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 Note 34: Earnings per Share and Equity per Share 121 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 122 Extract of the Parent Company Financial Statements 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 Proposal for the Distribution of Funds 124 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