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Financing and Capital Expenditure

The cash flow from operations was EUR 2 757.5 (EUR 2 818.0) million whereas the operating cash flow, being cash flow from operations less investing activities, amounted to EUR 1 849.9 (EUR -1 800.9) million.

At the year-end interest-bearing net liabilities were EUR 4 819.9 million, down EUR 362.8 million compared with 2000; unutilised credit facilities totalled EUR 2.8 billion.

The debt/equity ratio at 31 December was 0.53, compared with 0.59 for 2000, and equity per share was EUR 10.0, compared with EUR 9.4.

Capital expenditure totalled EUR 857.1 (EUR 769.3) million, well in line with the Group policy of not exceeding the annual level of depreciation. The main investments were the new pulping line no. 3 (EUR 134.5 million) and the rebuilding of board machine no. 5 (EUR 11.2 million) in Imatra, Finland, the rebuilding of fine paper machine no. 6 (EUR 56.7 million) in Oulu, Finland, fine paper machine no. 2 (EUR 22.1 million) in Uetersen, Germany, and newsprint paper machine no. 3 (EUR 14.5 million) in Summa, Finland. An asset restructuring programme to increase competitiveness in the newsprint and magazine paper businesses was also initiated. The programme includes a newsprint production line expected to go on stream in June 2003, a biofuel power plant and the rebuilding of paper machine no. 3 in Langerbrugge, Belgium, as well as the shutting-down of paper machine no. 2 at Langerbrugge and no. 1 at Summa.

Capital Structure
Capital Employed
Cash Flow by Product Area
Change in Interest-bearing Net Liabilities









Capital Structure
EUR million 1999 2000 2001 Per Share, EUR
Fixed assets 11 528.9 15 280.7 14 882.2 16.61
Working capital 1 087.9 1 276.2 1 224.2 1.37
Operating capital 12 616.8 16 556.9 16 106.4 17.98
Net tax liabilities -1 675.5 -2 654.0 -2 247.3 -2.51
Capital Employed 10 941.3 13 902.9 13 859.1 15.47
         
Shareholders' equity 5 956.5 8 570.8 8 989.0 10.03
Minority interests 202.0 149.4 50.2 0.06
Interest-bearing net liabilities 4 782.8 5 182.7 4 819.9 5.38
  10 941.3 13 902.9 13 859.1 15.47
Capital Employed
EUR million Operating Capital Net Tax Liabilities Capital Employed
USA 5 503.9 34.2% 762.6 33.9% 4 741.3 34.2%
Finland 4 522.1 28.0% 474.4 21.1% 4 047.7 29.2%
Sweden 2 799.0 17.4% 818.8 36.4% 1 980.2 14.3%
Germany 1 098.1 6.8% 208.6 9.3% 889.5 6.4%
Canada 613.3 3.8% -18.6 -0.8% 631.7 4.6%
France 276.0 1.7% 27.8 1.2% 248.2 1.8%
China 252.7 1.6% - 0.0% 252.7 1.8%
Portugal 229.0 1.4% -5.0 -0.2% 234.0 1.7%
Austria 170.8 1.1% 9.0 0.4% 161.8 1.2%
Other 641.7 4.0% -30.3 -1.3% 672.0 4.8%
Total 16 106.4 100% 2 247.3 100% 13 859.1 100%
Cash Flow by Product Area
EUR million Magazine
paper		 Newsprint Fine
paper		 Packaging
boards		 Timber Other Ongoing
Operations
Operating profit (excluding goodwill and non-recurring items) 346.9 508.8 394.5 346.2 12.6 37.7 1 646.7
Depreciation, non-recurring items and adjustments 325.3 127.2 351.8 218.6 35.7 0.8 1 059.4
Change in working capital 44.8 -53.6 80.4 37.5 0.9 -58.6 51.4
Cash Flow from Operations 717.0 582.4 826.7 602.3 49.2 -20.1 2 757.5
Change in Interest-bearing Net Liabilities
EUR million Ongoing
Operations		 Structural
Changes		 Group
Cash Flow		 Translation
Difference		 Impact on
the BS
Operating profit 1 486.9 - 1 486.9 - 1 486.9
Depreciation, amortisation and adjustments 1 219.2 - 1 219.2 - 1 219.2
Change in working capital 51.4 7.9 59.3 -7.4 51.9
Cash Flow from Operations 2 757.5 7.9 2 765.4 -7.4 2 758.0
Capital expenditure -857.1 - -857.1 - -857.1
Acquisitions -148.5 - -148.5 - -148.5
Disposals 92.6 - 92.6 - 92.6
Other change in fixed assets 5.4 244.3 249.7 -157.4 92.3
Operating Cash Flow 1 849.9 252.2 2 102.1 -164.8 1 937.3
Net financing items (incl. Associated companies) -263.9 - -263.9 - -263.9
Taxes paid -678.0 -31.0 709.0 2.7 -706.3
Share issue 29.5 - 29.5 - 29.5
Dividends -407.4 - -407.4 - -407.4
Share repurchases -199.8 - -199.8 - -199.8
Other change in equity and minority items -43.7 - -43.7 17.1 -26.6
Change in Interest-bearing Net Liabilities 286.6 221.2 507.8 -145.0 362.8