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

In 2004 the Group divested its Swedish forest holdings company, Bergvik Skog AB (see Note 4) and generated a capital gain of SEK 978 (EUR 107.3) million on the fixed assets therein. Cumulative Translation Adjustments (CTA) relating to divested companies amounted to EUR 11.7 million, of which EUR 6.5 million related to Bergvik Skog and EUR 5.2 million to the Group’s former Borneo plantation business.

In 2003 there were no material gains on the disposal of long-term investments and fixed assets, whereas in 2002 these items included respectively a profit of SEK 702.5 (EUR 76.7) million on the sale of the greater part of the Group holding in its associate company, Billerud AB (see Note 13 ), and EUR 75.4 million relating to its forest holdings in Finland and the USA.

Aggregate fees for professional services rendered to the Group by the principal independent auditor, PricewaterhouseCoopers, are shown in the table to the right. Audit fees relate to the audit of the annual financial statements or ancillary services normally provided in connection with statutory and regulatory filings. Audit-related fees are incurred for assurance and associated services that are reasonably related to the performance of the audit or review of financial statements. Tax fees are incurred on account of tax compliance, advice and planning.

Other Operating Income & Expense

	Year Ended 31 December
EUR million	2002	2003	2004
Capital gain on sale of fixed assets	79.6	12.4	113.0
CTA on disposals, net of hedging	-	-	11.7
Gain on sale of long-term 'investments	79.5	2.6	1.4
Insurance compensation	42.5	9.7	4.8
Rent	10.0	8.3	8.4
Subsidies	7.0	6.3	7.4
Total	218.6	39.3	146.7
Other Operating Expenses include
Research and Development	91.6	88.8	82.2
Rents paid	95.7	93.2	93.4
Loss on sale of long-term investments	-	4.5	0.3

Principal Independent Auditor's Fees & Services

	Year Ended 31 December
EUR million	2002	2003	2004
Audit fees	2.1	2.5	2.7
Audit-related fees	0.5	1.0	1.0
Tax fees	0.4	0.5	1.1
Other fees	0.1	0.4	0.1
Total	3.1	4.4	4.9