Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Supplemental Cash Flow Information
Statement of Changes in Shareholders´ Equity
Distributable Funds

Consolidated Income Statement

		Year Ended 31 December
EUR million	Note	2002	2003	2004
Sales	3	12 782.6	12 172.3	12 395.8
Other operating income	5	218.6	39.3	146.7
Changes in inventories of finished goods and work in progress		30.3	63.5	39.0
Change in net value of biological assets	12	-	11.6	7.1
Materials and services		-6 415.7	-6 202.5	-6 573.6
Freight and sales commissions		-1 240.9	-1 286.8	-1 367.8
Personnel expenses	6, 20	-2 308.1	-2 297.6	-1 937.3
Other operating expenses	5	-802.6	-828.0	-831.8
Depreciation. amortisation and impairment charges	10	-2 441.9	-1 200.4	-1 172.0
Operating Profit/(Loss)	3	-177.7	471.4	706.1
Share of results in associated companies	13	14.6	-23.0	38.9
Net financial items	7	-206.2	-237.7	-106.0
Profit/(Loss) before Tax and Minority Interests		-369.3	210.7	639.0
Income tax expense	8	128.5	-67.0	108.8
Profit/(Loss) after Tax		-240.8	143.7	747.8
Minority interests	19	0.1	-5.8	-8.1
Net Profit/(Loss) for the Period		-240.7	137.9	739.7
Earnings per Share
Basic earnings/(loss) per share. EUR	30	-0.27	0.16	0.89
Diluted earnings/(loss) per share. EUR	30	-0.27	0.16	0.89
The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Balance Sheet

		As at 31 December
EUR million		Note	2002	2003	2004
Assets
Fixed Assets and Other Long-term Investments
Goodwill	O	11	1 055.5	902.6	787.9
Intangible fixed assets	O	11	73.3	80.4	108.1
Property. plant and equipment	O	11	10 812.1	9 964.5	9 754.8
Biological assets	O	12	-	1 587.8	64.6
Investment in associated companies	A	13	211.7	319.0	568.1
Listed securities	I	14	169.2	227.7	220.1
Unlisted shares	O	14	148.5	140.8	132.8
Non-current loan receivables	I	17	480.6	44.3	233.1
Deferred tax assets	T	8	52.7	12.1	11.4
Other non-current assets	O	15	241.1	170.3	210.5
			13 244.7	13 449.5	12 091.4
Current Assets
Inventories	O	16	1 565.0	1 623.5	1 771.3
Tax receivables	T	8	243.1	182.5	160.9
Short-term operative receivables	O	17	1 902.4	1 703.3	1 865.3
Interest-bearing receivables	I	17	1 090.5	781.8	248.7
Cash and cash equivalents	I		168.5	201.5	274.3
			4 969.5	4 492.6	4 320.5
Total Assets			18 214.2	17 942.1	16 411.9
Shareholders' Equity and Liabilities
Shareholders' Equity
Share capital		18	1 529.6	1 469.3	1 423.3
Share premium fund			1 554.0	1 237.4	1 009.2
Treasury shares		18	-314.9	-258.0	-180.8
Other comprehensive income		24	233.4	114.6	67.6
Cumulative translation adjustment		25	-144.4	-197.1	-218.9
Retained earnings			5 417.8	5 448.8	5 211.0
Net profit for the period			-240.7	137.9	739.7
			8 034.8	7 952.9	8 051.1
Minority Interests		19	30.4	60.3	136.1
Long-term Liabilities
Pension and post-employment benefit provisions	O	20	919.0	911.9	637.8
Other provisions	O	22	194.5	97.1	60.9
Deferred tax liabilities	T	8	1 737.4	1 777.3	1 320.6
Long-term debt	I	21	4 525.2	3 404.6	3 328.1
Other long-term operative liabilities	O	23	36.9	77.7	153.2
			7 413.0	6 268.6	5 500.6
Current Liabilities
Current portion of long-term debt	I	21	306.5	359.5	102.1
Interest-bearing liabilities	I	21	343.9	1 410.1	597.4
Short-term operative liabilities	O	23	1 547.9	1 538.3	1 673.1
Tax liabilities	T	8	537.7	352.4	351.5
			2 736.0	3 660.3	2 724.1
Total Shareholders' Equity and Liabilities			18 214.2	17 942.1	16 411.9
Items designated "O" comprise Operative Capital
Items designated "I" comprise Interest-bearing Net Liabilities
Items designated "T" comprise Net Tax Liabilities
Items designated "A" comprise Associate Companies
The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Cash Flow Statement

		Year Ended 31 December
EUR million	Note	2002	2003	2004
Cash Flow from Operating Activities
Net profit/(loss) for the period		-240.7	137.9	739.7
Reversal of non-cash items:
Minority interests	19	-0.1	5.8	8.1
Taxes		-128.5	67.0	-108.8
Depreciation. amortisation and impairment charges	10	2 441.9	1 200.4	1 172.0
Change in value of biological assets	12	-	-11.6	-7.1
Share of results of associated companies	13	-14.6	23.0	-38.9
Profits and losses on sale of fixed assets and investments	5	-159.1	-10.5	-125.8
Net financial income	7	206.2	237.7	106.0
Interest received		46.5	24.6	15.6
Interest paid. net of amounts capitalised		-321.4	-228.1	-182.3
Dividends received	7, 13	9.2	5.8	24.6
Other financial items. net		170.0	-0.4	17.3
Income taxes paid	8	-169.2	-278.0	-114.2
Change in net working capital. net of businesses acquired or sold		-521.1	471.0	-100.8
Net Cash Provided by Operating Activities		1 319.1	1 644.6	1 405.4
Cash Flow from Investing Activities
Acquisition of subsidiary shares		-56.3	-125.2	-176.4
Acquisition of shares in associated companies	13	-1.5	-103.5	-250.4
Acquisition of available-for-sale investments	14	-12.8	-12.6	-13.2
Capital expenditure	3, 11	-877.6	-1 226.7	-975.1
Investment in biological assets	12	-	-6.2	-4.5
Proceeds from disposal of subsidiary shares		360.6	-	197.9
Proceeds from disposal of shares in associated companies	13	185.5	0.4	-
Proceeds from disposal of available-for-sale investments	14	16.8	18.5	32.8
Proceeds from sale of fixed assets	11	202.4	47.5	36.4
Proceeds from (payment of) long-term receivables. net		-74.4	336.2	-182.5
Net Cash Used in Investing Activities		-257.3	-1 071.6	-1 335.0
Cash Flow from Financing Activities
Proceeds from (payment of) long-term liabilities. net		-487.3	-957.4	1 261.2
Proceeds from (payment of) short-term borrowings. net		50.8	1 141.2	-697.4
Dividends paid		-403.6	-387.7	-375.7
Minority dividends	19	-0.3	-1.9	-1.9
Options exercised		-	-0.9	1.6
Repurchase of own shares	18	-286.9	-319.1	-198.6
Net Cash Used in Financing Activities		-1 127.3	-525.8	-10.8
Net Increase (Decrease) in Cash and Cash Equivalents		-65.5	47.2	59.6
Cash and bank in acquired companies		-	3.0	45.9
Cash and bank in divested companies		-	-	-29.5
Translation adjustment		-13.0	-17.2	-3.2
Cash and cash equivalents at the beginning of the year		247.0	168.5	201.5
Cash and Cash Equivalents at Year End		168.5	201.5	274.3
The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Cash Flow Statement

Supplemental Cash Flow Information

		Year Ended 31 December
EUR million	Note	2002	2003	2004
Change in Net Working Capital consists of:
Change in inventories		-17.0	-63.5	-106.8
Change in interest-free receivables		31.1	214.9	-226.2
Change in interest-free liabilities		-40.1	6.5	-212.1
Proceeds from (payment of) short-term receivables		-495.1	313.1	444.3
		-521.1	471.0	-100.8
Non-cash Investing and Financing Activities:
Total capital expenditure	3, 11	877.6	1 248.2	975.1
Amounts paid		877.6	1 226.7	975.1
Finance lease obligations incurred		-	21.5	-
Acquisition of Group Companies
Cash Flow on Acquisitions
Purchase consideration on acquisitions		56.3	128.2	176.4
Cash and cash equivalents in acquired companies		-	-3.0	-45.9
		56.3	125.2	130.5
Non-cash Transaction
Unlisted/Associate share exchange	14	27.6	-	3.9
Total Purchase Consideration		83.9	125.5	134.4
Acquired Net Assets
Operating working capital		-8.9	31.2	44.0
Operating fixed assets	11	150.4	206.4	190.2
Interest-bearing assets less cash and cash equivalents		5.6	5.7	0.7
Tax liabilities	8	-0.8	-0.2	-19.2
Interest-bearing liabilities		-79.8	-90.3	-11.4
Minority interests	19	17.4	-27.6	-69.9
		83.9	125.2	134.4
Disposal of Group Companies
Cash Flow on Disposals
Cash flow on disposal		360.6	-	197.9
Cash and cash equivalents in divested companies		-	-	-29.5
		360.6	-	168.4
Non-cash Transaction
Associate company shares received	13	36.8	-	-
		397.4	-	168.4
Net Assets Sold
Operating working capital		42.3	-	62.2
Operating fixed assets	11	441.0	-	94.1
Biological assets	12	-	-	1 541.2
Interest-bearing assets less cash and cash equivalents		5.3	-	23.1
Tax liabilities	8	-0.2	-	-222.9
Interest-bearing liabilities		-161.1	-	-1 518.8
Gain on sale	11	25.9	-	113.0
		353.2	-	91.9
Provision for unrealised gain	23	44.2	-	76.5
		397.4	-	168.4

Statement of Changes in Shareholders' Equity

EUR million	Share Capital	Share Premium	Treasury Shares	OCI	CTA	Retained Earnings		Total
Balance at 1 January 2002	1 541.5	1 639.5	-125.5	58.6	-50.1	5 821.4		8 885.4
Repurchase of Stora Enso Oyj shares	-	-	-286.8	-	-	-		-286.8
Cancellation of Stora Enso Oyj shares	-13.8	-83.6	97.4	-	-	-		-
Dividends paid (EUR 0.45 per share)	-	-	-	-	-	-403.6		-403.6
Options exercised	1.9	-1.9	-	-	-	-		-
Net loss for the period	-	-	-	-	-	-240.7		-240.7
OCI entries	-	-	-	174.8	-	-		174.8
Translation adjustment	-	-	-	-	-94.3	-		-94.3
Balance at 31 December 2002	1 529.6	1 554.0	-314.9	233.4	-144.4	5 177.1		8 034.8
Effect of adopting IAS 41 Agriculture
Subsidiary companies	-	-	-	-	-	615.4		615.4
Associated companies	-	-	-	-	-	44.0		44.0
Balance at 1 January 2003	1 529.6	1 554.0	-314.9	233.4	-144.4	5 836.5		8 694.2
Repurchase of Stora Enso Oyj shares	-	-	-319.1	-	-	-		-319.1
Cancellation of Stora Enso Oyj shares	-60.5	-315.5	376.0	-	-	-		-
Dividends paid (EUR 0.45 per share)	-	-	-	-	-	-387.7		-387.7
Options exercised	0.2	-1.1	-	-	-	-		-0.9
Net profit for the period	-	-	-	-	-	137.9		137.9
OCI entries	-	-	-	-118.8	-	-		-118.8
Translation adjustment	-	-	-	-	-52.7	-		-52.7
Balance at 31 December 2003	1 469.3	1 237.4	-258.0	114.6	-197.1	5 586.7		7 952.9
Repurchase of Stora Enso Oyj shares	-	-	-198.6	-	-	-		-198.6
Cancellation of Stora Enso Oyj shares	-47.3	-228.5	275.8	-	-	-		0
Dividends paid (EUR 0.45 per share)	-	-	-	-	-	-375.7		-375.7
Options exercised	1.3	0.3	-	-	-	-		1.6
Net profit for the period	-	-	-	-	-11.7	739.7		728.0
OCI entries	-	-	-	-47.0	-	-		-47.0
Translation adjustment	-	-	-	-	-10.1	-		-10.1
Balance at 31 December 2004	1 423.3	1 009.2	-180.8	67.6	-218.9	5 950.7		8 051.1

OCI = Other Comprehensive Income - see Note 24
CTA = Cumulative Translation Adjustment - See Note 25

Distributable Funds

	As at 31 December
EUR million	2002	2003	2004
Retained earnings	5 177.1	5 586.7	5 950.7
Translation adjustment	-144.4	-197.1	-218.9
Treasury shares	-314.9	-258.0	-180.8
Effect of adopting IAS 41	0	-659.4	-
	4 717.8	4 472.2	5 551.0
Untaxed reserves in retained earnings	-1 636.6	-2 053.3	-1 876.4
Distributable Funds	3 081.2	2 418.9	3 674.6

The accompanying Notes are an integral part of these Consolidated Financial Statements.