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Note 12 - Available-for-Sale Investments

Summary of Values
Principal Available-for-Sale Investments
Disposals

On 1 January 2001 the Group adopted IAS 39 - Financial Instruments: Recognition and Measurement, which required Stora Enso to reclassify its investments into the three categories of trading, held-to-maturity and available-for-sale; at the Balance Sheet date the Group held only available-for-sale investments. On the adoption of IAS 39, the Group recorded an adjustment of EUR 87.1 million to recognise the difference between the book and fair values of its available-for-sale investments at 1 January 2001; in accordance with the standard, the Balance Sheet for 2000 need not be restated to show this effect. All available-for-sale investments are considered to be non-current assets unless they are expected to be realised within twelve months.
 
Summary of Values
  Year Ended 31 December
EUR million 1999 2000 2001
Acquisition cost at 1 January as previously reported      
   Listed - Listed Shares 48.0 49.3 132.3
   Unlisted -Shares in other companies 128.8 280.4 177.2
Investments reclassified as available-for-sale 176.8 329.7 309.5
Effect of IAS 39 - - 87.1
Available-for-Sale investments at 1 January 176.8 329.7 396.6
Translation difference 0.5 -0.4 -0.8
Additions 19.1 20.6 20.5
Disposals -11.6 -40.4 -9.3
Change in fair values - - -28.6
Reversal of write-down 3.0 - -
Transfer from Associated Companies 141.9 - -
Carrying Amount at 31 December 329.7 309.5 378.4
 

The fair value of publicly traded securities are based on quoted market prices at the Balance Sheet date whereas the fair value of other securities are assessed using a variety of methods and assumptions based on market conditions existing at each Balance Sheet date; quoted market prices or dealer quotes for similar or identical securities may be obtained, alternatively, other techniques such as option pricing models and estimated discounted values of future cash flows, may also be used.

The 1999 transfer from Investments in associated companies largely comprised EUR 134.6 million relating to the reduction in the shareholding in Pohjolan Voima Oy to 16.5% that year and thence to 16.0% in 2001.

 
Principal Available-for-Sale Investments
  As at 31 December
EUR million Holding
%		 Number of
Shares		 Acquisition
Cost		 Market
Value
Listed Shares        
Advance Agro PCL, Thailand 18.9 100 536 328 69.1 38.7
Alfred Berg Global B 13.2 5 334 914 4.5 4.7
Alfred Berg Euro Obligaatio Pro 11.3 4 800 307 5.0 5.0
CPI Group Ltd, Australia (11.2% of voting rights) 8.4 4 784 142 5.0 2.2
Finnlines Oyj, Finland 5.5 1 104 670 1.9 25.4
Kemira Oyj, Finland 0.1 160 000 0.9 1.1
Merita Pro Euro Bond 6.1 496 980 5.5 5.7
Nordea Foresta Kasvu, Finland 4.3 5 000 000 0.8 1.8
Nordea AB, Sweden 0.1 3 706 214 8.7 22.2
Silja Oyj, Finland 2.0 1 261 211 2.5 2.1
Sampo Plc, Finland, A series 1.6 8 911 140 25.7 78.4
Tietoenator Oyj 0.0 29 160 0.6 0.9
Others - N/A 8.8 9.2
Total Listed Shares     138.9 197.4
Unlisted Shares     181.0 181.0
Total Available-for-sale Investments *     319.9 378.4
*As mentioned in Note 4, the shares in Billerud AB, accounted for under Investments in Associated Companies, are intended to be divested.

The difference of EUR 58.5 million between the acquisition cost and market value of the available-for-sale investments represents the adjustment on the adoption of IAS 39 as shown in Note 20.

 
Disposals
  Year Ended 31 December
EUR million 1999 2000 2001
       
Sale proceeds 15.0 49.3 15.6
Carrying value 11.6 40.4 9.3
Gain on Sale 3.4 8.9 6.3