Restatement of Prior Year Results: Finnish TEL System

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