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

	Year Ended 31 December
EUR million	2002	2003	2004
Interest expense
Bank borrowings	-242.5	-188.9	-149.3
Finance leases	-34.3	-30.2	-17.3
Interest capitalised	9.0	5.2	2.5
Interest income	38.3	27.8	22.7
Dividend income	9.2	5.8	17.1
Exchange gains and losses
Currency derivatives	271.2	236.0	-59.2
Borrowings and deposits	-226.3	-223.5	58.1
Other financial income
Fair value change of hedge-accounted derivatives	1.8	1.5	13.8
Other fair value changes	26.3	20.8	18.7
Others	20.0	14.4	8.1
Other financial expense
Fair value change of hedge-accounted derivatives	-	-11.3	-0.2
Other fair value changes	-78.5	-11.2	-0.2
Others	-0.4	-84.1	-20.8
Total	-206.2	-237.7	-106.0

Gains and losses on derivative financial instruments are shown in Note 24.

A provision of EUR 53.9 (USD 61.1) million for additional leasing costs arising from the early termination of finance leases was included in Other Financial Expense in 2003. Stora Enso North America Inc had terminated a portfolio of 1996 UK finance leases which had been due to expire in 2011, but as a consequence of changes in the interpretation of UK leasing tax rules, early termination of the leases became appropriate. The transaction was closed on 2 March 2004 and the remaining provision of USD 3.5 (EUR 2.8) million was credited back to the Income Statement.

Aggregate foreign exchange gains and losses included in the Consolidated Income Statement are:

	Year Ended 31 December
EUR million	2002	2003	2004
Sales	-19.0	-47.9	-19.2
Costs and expenses	2.5	5.2	3.2
Net financial items	44.9	12.5	-1.1
Total	28.4	-30.2	-17.1