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

Other Provisions

EUR million	Environmental	Reorganisation	Other Obligatory	Total Provisions
Carrying value at 1 January 2003	54.5	24.7	115.3	194.5
Translation difference	-0.1	0.1	0.1	0.1
Reclassification	-	-	-76.2	-76.2
Charge in Income Statement
New provisions	-	53.2	1.6	54.8
Increase in existing provisions	1.8	-	2.0	3.8
Reversal of existing provisions	-4.6	-	-4.6	-9.2
Payments	-4.4	-29.4	-6.4	-40.2
Carrying Value at 31 December 2003	47.2	48.6	31.8	127.6
Translation difference	0.1	-1.5	0.1	-1.3
Reclassification	-	4.6	-4.6	-
Disposals	-	-	-14.7	-14.7
Charge in Income Statement
New provisions	2.7	6.2	-	8.9
Increase in existing provisions	1.3	3.1	3.8	8.2
Reversal of existing provisions	-	-1.1	-0.2	-1.3
Payments	-5.9	-28.9	-11.0	-45.8
Carrying Value at 31 December 2004	45.4	31.0	5.2	81.6
Allocation between Current and Non-current Liabilities
Current Liabilities: Payable within 12 months	3.0	15.3	2.4	20.7
Non-current Liabilities: Payable after 12 months	42.4	15.7	2.8	60.9
Total at 31 December 2004	45.4	31.0	5.2	81.6
Current Liabilities: Payable within 12 months	4.8	25.7	-	30.5
Non-current Liabilities: Payable after 12 months	42.4	22.9	31.8	97.1
Total at 31 December 2003	47.2	48.6	31.8	127.6

Reorganisation Provisions

• Stora Enso North America Fixed-Cost Reduction Programme

In 2004 Stora Enso North America announced a further extension of its Profit Enhancement Programme of August 2002 whereby maintenance personnel would be reduced by a target of nearly 200 at a cost of EUR 4.4 (USD 5.5) million. The 2003 extension of the programme had also included a reduction in Stora Enso North America’s total workforce of about 12% or 700 employees by mid 2005. At the year end Stora Enso employed 5 266 (5 669) people in North America, against a target of 5 000 and compared to 7 300 at the time of the acquisition in 2000. A restructuring charge of EUR 24.6 (USD 27.4) million was entered in 2003, the charge in 2002 having been EUR 52.9 (USD 50.0) million. At 31 December 2004 the remaining provision amounted to EUR 6.6 (EUR 15.1) million.

The original 2002 Profit Enhancement Programme comprised a comprehensive range of measures to improve the Group’s competitive position and profitability, the main elements being to restructure selected manufacturing assets with the loss of some 500 jobs. The restructuring charge of EUR 52.9 (USD 50.0) million entered in 2002 related to asset impairment aspect of the plan.

• Corbehem Mill Restructuring Programme

In 2003 Stora Enso launched a restructuring programme at Corbehem Mill in France to secure the site’s long-term competitiveness. The programme involved a major reorganisation of the whole mill, including a variable-cost reduction plan, investments in PM5 and a decrease of 169 permanent positions by 2006, of which 110 had gone by the end of 2004. A provision of EUR 15.3 million was made in 2003, of which EUR 14.2 million related to redundancy payments and EUR 1.1 million to other costs; EUR 5.6 (EUR 6.9) million was outstanding at 31 December 2004.

• Nymölla Mill, Sweden

A restructuring provision of EUR 2.0 million at 31 December 2002 related to the closing down of a coating machine in early 2002 which resulted in 70 redundancies; this provision was subsequently supplemented in 2003 by a further reorganisation whereby costs were set aside to cover the redundancy of some 90 staff, the final 33 of whom left the company in 2004. By 31 December 2004, the provision had been discharged.

• Port Hawkesbury Mill, Nova Scotia, Canada

A provision of EUR 4.9 million was made in late 2003 for severance and related benefits related to workforce downsizing of 135 staff, all but 32 having been announced by the end of 2004 and 56 leaving in the year; at 31 December 2004 the provision amounted to EUR 4.2 (EUR 4.9) million

• Papyrus GB Ltd

In May 2002 Stora Enso closed down Papyrus GB Ltd, its merchant arm in the UK and a restructuring charge of EUR 25.1 million was recorded for the exit costs, of which EUR 9.5 million related to staff and a further EUR 15.6 million to lease terminations and asset write-downs. The provision was slightly increased in 2004 and at the year end amounted to EUR 5.5 (EUR 4.8) million, mainly pension-related.

• Summa Paper Mill, Finland

As part of its asset improvement plan, the Group closed down PM1 at Summa Mill in Finland, charging restructuring costs of EUR 8.8 million in 2002, of which EUR 3.4 million related to staff and a further EUR 5.4 million to site clean-up and restoration costs and inventory write-downs. At 31 December 2004 the remaining provision amounted to EUR 0.6 (EUR 2.8) million.

Environmental Remediation

Provision for environmental remediation amounted to EUR 45.4 (EUR 47.2) million at 31 December 2004 and largely related to the removal of mercury and other contaminants from sites in Sweden and Finland; details of the principal provisions are:

• Following an agreement between Stora Enso and the City of Falun, the Group is obliged to clean-up pollution to the area caused by the Kopparberg mine; the provision amounted to EUR 9.9 (EUR 12.9) million.

• A provision of EUR 7.8 (EUR 10.4) million has been made for removing mercury from the harbour basin
at Skutskär

• The site of Skoghall Mill contains ground pollutants that must be eliminated; the provision amounts to EUR 9.0 (EUR 10.9) million.

• There are a further five cases in Finland where the total provision amounts to EUR 8.1 (EUR 9.1) million; the largest relates to pollution in the vicinity of Pateniemi sawmill, being EUR 5.0 (EUR 5.1) million.

Other Obligatory Provisions

A provision in Sweden of EUR 14.7 million relating to statutory forest replanting was disposed of with the divestment of Bergvik Skog AB. Certain other provisions amounting to EUR 4.6 million were also reclassified, leaving a year end liability for Other Obligatory Provisions of EUR 5.2 million