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Financial Notes
Consolidated Financial Statements

Note 2 - Segment Information

Sales by Segment
Segment Share of Associated Company Results and Operating Profit
Operating Capital by Segment
Reconciliation of Operating Capital to Total Assets
Assets and Liabilities by Segment
Capital Expenditure by Segment
Depreciation, Amortisation and Impairment Charges by Segment
Average Number of Personnel by Segment
Sales by Destination
Capital Expenditure by Location
Total Assets by Location
Capital Employed by Location

The accounting policies of the reportable segments are the same as those set out in Note 1 to the Consolidated Financial Statements; see Note 3 for details of energy operations discontinued in 2000. Segment sales include intersegment sales valued at arm's length prices.

The Pulp segment was dissolved in 2001 on the reallocation of the non-integrated pulp mills to the Magazine Paper, Fine Paper and Packaging Board segments; comparatives have been restated accordingly.

Information on Stora Enso's reportable segments as at and for the years ended 31 December 1999, 2000 and 2001 is shown in the following tables.
 
Sales by Segment Year Ended 31 December
EUR million 1999 2000 2001
  External Intragroup Total External Intragroup Total External Intragroup Total
Magazine paper 2 057.4 99.1 2 156.5 2 738.3 80.5 2 818.8 3 396.4 52.6 3 449.0
Newsprint 1 599.0 42.8 1 641.8 1 677.3 89.4 1 766.7 1 845.3 88.6 1 933.9
Fine paper 2 208.6 285.2 2 493.8 3 119.6 353.6 3 473.2 3 153.3 464.2 3 617.5
Packaging boards 2 429.3 112.2 2 541.5 2 835.5 139.5 2 975.0 2 553.8 170.2 2 724.0
Timber 1 044.1 95.9 1 140.0 1 151.7 90.4 1 242.1 1 090.2 90.3 1 180.5
Merchants 753.9 33.3 787.2 879.7 10.9 890.6 838.5 1.8 840.3
Forest 226.5 1 403.8 1 630.3 388.9 1 488.5 1 877.4 453.6 1 372.0 1 825.6
Other and elimination of internal sales 191.6 -2 072.3 -1 880.7 186.3 -2 252.8 -2 066.5 177.7 -2 239.7 -2 062.0
Continuing Operations Total 10 510.4 - 10 510.4 12 977.3 - 12 977.3 13 508.8 - 13 508.8
Divested units 24.7 - 24.7 - - - - - -
Discontinued operations 100.6 127.4 228.0 39.7 30.6 70.3 - - -
Elimination of internal sales - -127.4 -127.4 - -30.6 -30.6 - - -
Group Total 10 635.7 - 10 635.7 13 017.0 - 13 017.0 13 508.8 - 13 508.8
Segment Share of Associated Company Results and Operating Profit
EUR million Share of Results of
Associated Companies		 Operating
Profit
  Year Ended 31 December
  1999 2000 2001 1999 2000 2001
Magazine paper 1.7 27.1 16.4 306.0 357.8 282.7
Newsprint - - - 299.1 263.5 503.1
Fine paper 1.4 -1.4 - 238.2 628.9 324.7
Packaging boards (1) -0.1 - 57.0 247.9 352.2 339.5
Timber 2.3 1.9 5.2 41.0 69.1 5.2
Merchants 0.6 - - 0.5 8.3 -10.0
Forest (2) - - - 132.3 118.7 88.1
Other 3.8 -7.0 1.0 -28.4 -4.7 -46.4
Continuing Operations Total 9.7 20.6 79.6 1 236.6 1 793.8 1 486.9
Divested units - - - 22.9 - -
Discontinued operations - - - 140.1 577.5 -
Group Total 9.7 20.6 79.6 1 399.6 2 371.3 1 486.9

1) The associated company result for Packaging boards arose from the establishment of Billerud AB on 1 January 2001.
2) The Income Statement for the year ended 31 December 1999 was restated to reflect the adoption of the new forest accounting policy, whereby EUR - 8.8 million operating profit, less taxes of EUR 2.8 million, was reclassified from shareholders' equity to materials and services, depreciation and income taxes; the effect for the year 2000 was EUR -11.2 million operating profit less taxes EUR 3.2 million.
 
Operating Capital by Segment
  As at 31 December
EUR million 2000 2001
Magazine paper 4 426.3 4 280.2
Newsprint 1 326.0 1 250.7
Fine paper 5 635.1 5 215.1
Packaging boards 2 772.1 2 706.0
Timber 452.3 561.5
Merchants 257.6 214.8
Forest 1 281.5 1 284.0
Other 406.0 594.1
Continuing Operations Total 16 556.9 16 106.4

Operating capital ("O" items) is designated thus on the Balance Sheet and represents the sum of fixed assets and other long-term investments (excl.investments, loan receivables and deferred tax assets), inventories, short-term receivables, other provisions, other long-term liabilities and other current liabilities.
Reconciliation of Operating Capital to Total Assets
  As at 31 December
EUR million 2000 2001
Operating capital 16 556.9 16 106.4
Gross-up for operating liabilities 2 928.5 2 610.0
Interest-bearing receivables 1 672.7 1 589.6
Tax receivables 164.7 252.4
Total Assets 21 322.8 20 558.4
Assets and Liabilities by Segment
  As at 31 December
EUR million 2000 2001
  Assets Liabilities Assets Liabilities
Magazine paper 5 120.0 693.7 4 940.4 660.2
Newsprint 1 630.3 304.3 1 526.9 276.2
Fine paper 6 295.7 660.6 5 800.8 585.7
Packaging boards 3 289.2 517.1 3 126.8 420.8
Timber 619.9 167.6 718.3 156.8
Merchants 403.7 146.1 334.0 119.2
Forest 1 488.0 206.5 1 487.6 203.6
Other 2 476.0 9 906.7 2 623.6 9 096.7
Continuing Operations Total 21 322.8 12 602.6 20 558.4 11 519.2
Capital Expenditure by Segment
  Year Ended 31 December
EUR million 1999 2000 2001
Magazine paper 119.0 115.1 148.5
Newsprint 72.3 74.8 91.2
Fine paper 189.7 116.6 193.7
Packaging boards 242.1 342.3 294.4
Timber 51.3 46.5 64.4
Merchants 6.6 6.8 5.0
Forest 13.8 18.7 21.2
Other 33.6 46.0 38.7
Continuing Operations Total 728.4 766.8 857.1
Divested units 0.4 - -
Discontinued operations 11.4 2.5 -
Total 740.2 769.3 857.1
Depreciation, Amortisation and Impairment Charges by Segment
  Year Ended 31 December
EUR million 1999 2000 2001
Magazine paper 201.5 255.0 389.5
Newsprint 139.9 137.6 132.9
Fine paper 218.7 274.6 412.0
Packaging boards 218.5 313.1 225.3
Timber 39.2 38.0 43.1
Merchants 12.3 12.4 10.2
Forest 37.8 39.9 35.8
Other 25.4 53.0 18.8
Continuing Operations Total 893.3 1 123.6 1 267.6
Divested units 2.6 - -
Discontinued operations 15.2 5.8 -
Total 911.1 1 129.4 1 267.6
Average Number of Personnel by Segment
  Year Ended 31 December
  1999 2000 2001
Magazine paper 5 291 6 205 7 854
Newsprint 5 564 5 437 5 530
Fine paper 8 842 9 562 10 607
Packaging boards 10 608 10 635 9 888
Timber 3 605 3 593 3 644
Merchants 1 577 1 606 1 580
Forest 2 134 2 236 2 176
Other 2 282 2 433 2 996
Continuing Operations Total 39 903 41 707 44 275
Divested units 115 - -
Discontinued operations 208 78 -
Total 40 226 41 785 44 275
Sales by Destination
  Year Ended 31 December
EUR million 1999 2000 2001
Germany 1 825.7 1 987.4 1 840.3
UK 1 321.7 1 446.4 1 324.8
France 974.0 1 035.4 1 007.0
Sweden 810.5 1 052.3 1 026.6
Finland 730.2 821.8 776.0
Netherlands 538.8 610.1 581.9
Italy 450.7 520.6 403.2
Spain 440.0 495.9 445.5
Belgium 349.4 366.8 345.1
Denmark 286.8 319.8 307.6
Other EU 423.0 495.5 482.2
Total EU 8 150.8 9 152.0 8 540.2
Other Europe 635.3 788.5 813.2
USA 544.8 1 436.3 2 469.7
Canada 62.6 76.4 169.4
Asia-Pacific 773.6 1 023.9 954.3
Others 468.6 539.9 562.0
Total 10 635.7 13 017.0 13 508.8
Capital Expenditure by Location
  Year Ended 31 December
EUR million 1999 2000 2001
Finland 222.3 384.5 392.1
Sweden 290.9 189.8 158.5
Germany 86.8 65.1 91.6
USA - 33.3 66.9
Belgium 12.7 10.9 30.7
Portugal 40.7 12.7 14.9
Canada 6.2 10.3 12.9
France 12.5 19.6 7.8
Other 68.1 43.1 81.7
Total 740.2 769.3 857.1
Total Assets by Location
  As at 31 December
EUR million 2000 2001
USA 6 657.9 6 613.6
Finland 5 496.1 5 354.3
Sweden 4 135.8 3 714.6
Germany 2 040.0 1 895.0
Canada 655.3 616.0
France 478.6 386.9
China 259.0 277.4
Portugal 375.7 246.7
Austria 222.8 221.4
Other 1 001.6 1 232.5
Total 21 322.8 20 558.4
Capital Employed by Location
  As at 31 December
EUR million 2000 2001
USA 4 781.2 4 741.3
Finland 3 857.3 4 047.7
Sweden 2 240.0 1 980.2
Germany 839.6 889.5
Canada 650.0 631.7
China 225.9 252.7
France 331.2 248.2
Portugal 182.4 234.0
Austria 149.0 161.8
Other 646.3 672.0
Total 13 902.9 13 859.1

Total capital employed represents operating capital less net tax liabilities