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

Personnel Expenses

	Year Ended 31 December
EUR million	2002	2003	2004
Wages and salaries	1 656.3	1 662.3	1 595.5
Pensions	335.1	345.1	52.3
Other statutory employer costs	176.4	272.2	271.9
Other voluntary costs	140.3	18.0	17.6
Total	2 308.1	2 297.6	1 937.3

Pensions

	Year Ended 31 December
EUR million	2002	2003	2004
Defined benefit plans	88.5	104.5	-116.6
Defined contribution plans	211.4	209.2	201.8
Other post-employment benefits	35.2	31.4	-32.9
Total Pension Costs	335.1	345.1	52.3

As a result of the change in rules for calculating disability pension liabilities in Finland, there was a credit to the Income Statement relating to defined benefit plans of EUR 179.9 million; full details of pension costs are shown in Note 20.

Board Remuneration

	Year Ended 31 December
EUR thousand	2002	2003	2004
Serving Board Members in 2004
Claes Dahlbäck, Chairman	135.0	135.0	141.0
Krister Ahlström, Vice Chairman	85.0	85.0	91.0
Lee A. Chaden '(appointed 18 March 2004)	-	-	45.0
Harald Einsmann	60.0	60.0	64.5
Björn Hägglund, Deputy CEO	-	-	-
Jukka Härmälä, CEO	-	-	-
Barbara Kux	-	45.0	65.3
George W. Mead '(resigned 20 March 2004)	60.0	60.0	15.0
Ilkka Niemi	60.0	60.0	69.7
Paavo Pitkänen	60.0	60.0	65.3
Jan Sjöqvist	60.0	60.0	67.5
Marcus Wallenberg	60.0	60.0	65.2
Former Board Members
Josef Ackermann (resigned 20 March 2003)	60.0	15.0	-
Total Remuneration as Directors	640.0	640.0	689.5

Executive Management Group (“EMG”) Remuneration

EMG annual salaries are normally reviewed once a year with new salaries valid from 1 March. Basic annual salaries totalled EUR 4.7 (EUR 4.5) million, of which EUR 1.1 (EUR 1.1) million related to the CEO as detailed below.

Executive Remuneration: CEO

	Year Ended 31 December
EUR thousand	2002	2003	2004
Annual salary	1 142.3	1 063.1	1 102.8
Benefits	76.3	114.8	64.1
Bonus (variable salary)	220.2	197.1	253.9
Total Remuneration	1 438.8	1 375.0	1 420.8

Chief Executive Officer: Jukka Härmälä

In addition to his basic salary, the CEO is also entitled to a short-term incentive plan, decided on by the Board each year, giving a maximum 50% of annual fixed salary. The plan for 2004 was 20% related to Stora Enso’s Return on Capital Employed (“ROCE”), 20% to the North America Profit Enhancement Plan and 60% to personal key targets.

The retirement age for the CEO has been set at 60 years. The CEO’s pension arises from the compulsory Finnish TEL scheme and a Stora Enso voluntary plan amounting to 66% of the average of the last four years Finnish remuneration preceding retirement. Pensionable remuneration in 2004 was EUR 963 634 (EUR 930 350), thus the cost to the Company of the compulsory TEL plan was EUR 161 890 (EUR 174 083). A contribution of EUR 332 935 (NIL) was needed for the Stora Enso voluntary plan, this funding being required following a review of the policy and the accumulated fund; it does not represent any change in the benefits themselves.

Executive Management Group

EMG members, including the deputy CEO have short-term incentive plans up to a maximum 50% of annual fixed salary, with up to 50% tied to the Group’s Return on Capital Employed; the payout in 2004, relating to 2003, was EUR 636 582
(EUR 610 020). Benefits amounting to EUR 347 544 (EUR 263 172) were provided, though additional sums relating to the foreign assignments of five members were paid at a cost of EUR 282 791 (EUR 326 233).

EMG members have a retirement age of 60 with pensions consistent with local practices within their respective home countries; pension costs totalled EUR 1 611 431 (EUR 1 367 397).

Contracts of employment for the CEO, Deputy CEO and other EMG members provide for notice of six months prior to termination with compensation being twelve months basic salary and a further optional twelve months salary depending on employment. They are also entitled to a certain number of shares through options / synthetic options, full details of which are shown in Note 28.