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Financial Notes
Consolidated Financial Statements

Note 3 - Discontinued Operations

Effect on Income Statement
Effect on Cash Flow

There were no discontinued operations in 2001.

The sale of Stora Enso's non-mill power assets to Fortum Oyj was closed in mid-2000, the deal having a total asset value of
EUR 1 889.8 million, profit before tax of EUR 524.8 million and related tax expense of EUR 110.4 million. The transaction did not include Stora Enso's shares in Pohjolan Voima Oy, some of which were sold in 1999 along with the Group's shares in Teollisuuden Sähkönmyynti Oy, recording an aggregate gain of EUR 48.2 million, less related tax of EUR 13.5 million. From 1 January 2001 energy operations are included in 'Other' segment and accordingly prior year information has been restated to include the results of the remaining energy operations, now consisting of the Energy Department of Stora Enso Oyj, together with shares in Gasum Oy and Pohjolan Voima Oy.
 
Effect on Income Statement
EUR million Continuing Operations Discontinued Operations, Energy Total Operations
  Year Ended 31 December Year Ended 31 December Year Ended 31 December
  1999 2000 2001 1999 2000 2001 1999 2000 2001
Sales 10 407.7 12 946.7 13 508.8 228.0 70.3 - 10 635.7 13 017.0 13 508.8
Change in inventories of finished goods and work in progress -119.9 -50.8 38.4 0.5 -0.3 - -119.4 -51.1 38.4
Other operating income 77.4 63.2 150.9 0.5 32.9 - 77.9 96.1 150.9
Capital gain on disposal of energy operations - - - 48.2 524.8 - 48.2 524.8 -
Materials and services -4 810.9 -6 027.1 -6 547.8 -15.5 -10.7 - -4 826.4 -6 037.8 -6 547.8
Freight and commissions -993.5 -1 282.2 -1 234.0 - - - -993.5 -1 282.2 -1 234.0
Personnel expenses -1 745.0 -1 991.4 -2 234.4 -9.3 -4.3 - -1 754.3 -1 995.7 -2 234.4
Depreciation, amortisation and impairment charges -895.9 -1 123.6 -1 267.6 -15.2 -5.8 - -911.1 -1 129.4 -1 267.6
Other operating expenses -660.4 -741.0 -927.4 -97.1 -29.4 - -757.5 -770.4 -927.4
Operating Profit 1 259.5 1 793.8 1 486.9 140.1 577.5 - 1 399.6 2 371.3 1 486.9
Net financial items -211.1 -276.4 -343.5 -55.5 -16.5 - -266.6 -292.9 -343.5
Share of results of associated companies 9.6 20.6 79.6 0.1 - - 9.7 20.6 79.6
Profit before tax and minority interests 1 058.0 1 538.0 1 223.0 84.7 561.0 - 1 142.7 2 099.0 1 223.0
Income tax expense -365.0 -539.9 -299.6 -26.8 -110.4 - -391.8 -650.3 -299.6
Profit after tax 693.0 998.1 923.4 57.9 450.6 - 750.9 1 448.7 923.4
Minority interests -4.5 -13.7 2.9 - - - -4.5 -13.7 2.9
Net Profit for the Period 688.5 984.4 926.3 57.9 450.6 - 746.4 1 435.0 926.3
Effect on Cash Flow
EUR million Continuing Operations Discontinued Operations,
Energy		 Total Operations
  Year Ended 31 December Year Ended 31 December Year Ended 31 December
  1999 2000 2001 1999 2000 2001 1999 2000 2001
Cash Flow from Operating Activities                  
Net profit for the period 688.5 984.4 926.3 57.9 450.6 - 746.4 1 435.0 926.3
Reversal of non-cash items                  
Minority interests 4.5 13.7 -2.9 - - - 4.5 13.7 -2.9
Taxes 365.0 539.9 299.6 26.8 110.4 - 391.8 650.3 299.6
Depreciation, amortisation and impairment charges 895.9 1 123.6 1 267.6 15.2 5.8 - 911.1 1 129.4 1 267.6
Share of results of associated companies -9.6 -20.6 -79.6 -0.1 - - -9.7 -20.6 -79.6
Profit and losses on sale of fixed assets -49.3 -72.7 -48.4 -48.2 -524.8 - -97.5 -597.5 -48.4
Net financial income 211.1 276.4 343.5 55.5 16.5 - 266.6 292.9 343.5
Interest received 12.8 23.0 56.1 - - - 12.8 23.0 56.1
Interest paid, net of amount capitalised -223.8 -301.7 -352.5 -55.5 -16.5 - -279.3 -318.2 -352.5
Dividends received 3.9 6.3 17.0 - - - 3.9 6.3 17.0
Other financial items, net 37.3 3.0 -27.4 - - - 37.3 3.0 -27.4
Income taxes paid -268.8 -442.9 -699.6 -42.1 -110.4 - -310.9 -553.3 -699.6
Change in net working capital -136.2 90.0 -171.2 -81.8 6.6 - -218.0 96.6 -171.2
Net Cash Provided by Operating Activities 1 531.3 2 222.4 1 528.5 -72.3 -61.8 - 1 459.0 2 160.6 1 528.5
                   
Cash Flow from Investing Activities                  
Acquisitions -103.9 -2 841.9 -376.2 - - - -103.9 -2 841.9 -376.2
Divestments 170.6 130.8 155.0 72.0 590.0 - 242.6 720.8 155.0
Capital expenditure -705.7 -769.3 -857.1 -23.4 - - -729.1 -769.3 -857.1
Net proceeds from long-term receivables 4.3 -20.6 193.6 6.8 - - 11.1 -20.6 193.6
Net Cash Used in Investing Activities -634.7 -3 501.0 -884.7 55.4 590.0 - -579.3 -2 911.0 -884.7
                   
Cash Flow from Financing Activities                  
Dividends paid -268.8 -303.9 -407.4 - - - -268.8 -303.9 -407.4
Other cash flow from financing activities -705.1 1 673.9 -735.3 128.7 -517.0 - -576.4 1 156.9 -735.3
Net Cash Used in Financing Activities -973.9 1 370.0 -1 142.7 128.7 -517.0 - -845.2 853.0 -1 142.7
                   
Net Increase
(-Decrease) in Cash and Cash Equivalents		 -77.3 91.4 -498.9 111.8 11.2 - 34.5 102.6 -498.9
Translation difference 12.5 -0.4 1.5 0.2 - - 12.7 -0.4 1.5
Cash and cash equivalents at 1 January 586.9 522.1 744.4 8.1 120.1 - 595.0 642.2 744.4
Cash and Cash Equivalents at Year End 522.1 613.1 247.0 120.1 131.3 - 642.2 744.4 247.0