Restatement of Prior Year Results: Finnish TEL System Note 1 Accounting Principles Note 2 Financial Risk Management Note 3 Segment Information Note 4 Acquisitions and Disposals Note 5 Other Operating Income & Expense Note 6 Staff Costs Note 7 Net Financial Items Note 8 Income Taxes Note 9 Valuation Provisions Note 10 Depreciation, Amortisation and Fixed Asset Impa Note 11 Fixed Assets Note 12 Biological Assets Note 13 Associated Companies Note 14 Available-for-Sale Investments Note 15 Other Non-Current Assets Note 16 Inventories Note 17 Receivables Note 18 Shareholders' Equity Note 19 Minority Interests Note 20 Post-Employment Benefits Note 21 Borrowings Note 22 Other Provisions Note 23 Operative Liabilities Note 24 Financial Instruments Note 25 Cumulative Translation Adjustment Note 26 Commitments and Contingencies Note 27 Principal Subsidiaries as at 31 December 2004 Note 28 Employee Bonus and Equity Incentive Schemes Note 29 Related Party Transactions Note 30 Earnings per Share and Equity per Share Note 31 Post-Balance Sheet Events Note 1 Accounting Principles Note 2 Other Operating Income Note 3 Materials and Services Note 4 Personnel Expenses Note 5 Other Operating Expenses Note 6 Net Financial Items Note 7 Depreciation According to Plan Note 8 Extraordinary Items Note 9 Fixed Assets Note 10 Depreciation Reserve Note 11 Receivables from Management Note 12 Long-term Investments and Loan Receivables Note 13 Inventories Note 14 Short-term Receivables Note 15 Interest-bearing Receivables Note 16 Shareholders' Equity Note 17 Long-term Liabilities Note 18 Short-term Borrowings Note 19 Other Current Liabilities Note 20 Commitments and Contingent Liabilities Note 21 Fair Value of Open Financial Instruments

Notes to the Consolidated Financial Statements

Amounts previously reported as net profit and shareholder’s equity differ from those amounts shown in these consolidated financial statements following the restatement of the accounting treatment of the Finnish Statutory Employment Pension Scheme (“TEL”). Stora Enso had previously treated the TEL’s disability pension component as a defined contribution scheme, however in April 2004 the major accounting firms interpreted this differently as a defined benefit scheme under IFRS. As a result, Stora Enso changed its treatment at that time and restated its previous results.

Restatement of Prior Year Results

	Year Ended 31 December
EUR million	2002	2003
Income Statement
As previously reported	-222.2	146.6
Restated	-240.7	137.9
Amount of restatement	-18.5	-8.7
Shareholders Equity
As previously reported	8 156.9	8 083.7
Restated	8 034.8	7 952.9
Amount of restatement	-122.1	-130.8

	Year Ended 31 December
EUR	2002	2003
Earnings per Share (Basic & Diluted)
As previously reported	-0.25	0.17
Restated	-0.27	0.16
Amount of restatement	-0.02	-0.01
Equity per Share (Basic & Diluted)
As previously reported	9.36	9.64
Restated	9.22	9.49
Amount of restatement	-0.14	-0.15

In late 2004 the Finnish Ministry of Social Affairs and Health approved changes to the TEL scheme for disability pension liabilities, to be effective from 1 January 2006. As a result, TEL disability pensions are to be accounted for as a defined contribution liability in IFRS accounts. This allowed Stora Enso to release all but EUR 4.4 million of the above provision since the restated figures for 2003 and prior years will remain unchanged. The effect on the Income Statement for 2004 shows a net gain of EUR 127.7 million, being an additional operating profit of EUR 179.9 million, as reduced by the deferred tax thereon of EUR 52.2 million. The allocation of the operating gain between segments is shown below.

Segment Impact for the Change in Rules of the Finnish TEL

	Year Ended 31 December 2004
EUR million	Cancellation of TEL Provision
Publication Paper	45.6
Fine Paper	37.0
Merchants	0.8
Packaging Boards	67.0
Wood Products	16.4
Wood Supply Europe	10.6
Other	2.5
	179.9