Customers
Stora Enso provides products and services for customers with high expectations. Stora Enso’s impacts on customers’ economic capacity are the result of the products and services provided by the Group.
Stora Enso serves mainly business-to-business customers through a global sales and marketing network, which has an established presence on six continents with more than 30 sales companies and a number of independent agents. In 2004, Stora Enso’s total sales amounted to EUR 12 395.8 million (EUR 12 172.3 million in 2003).
Suppliers
In 2004 Stora Enso acquired materials and services valued at EUR 6 534.6 million (EUR 6 129.3 million in 2003).
Employees
Stora Enso creates value for employees through remuneration and other benefits, including social security expenses borne by the company.
Stora Enso’s employees participate in a performance-oriented incentive bonus plan based on factors including profitability and the achievement of key business targets set by management. This plan currently covers around 80% of employees, mostly in Europe, and the aim is to gradually take it into use in other countries in accordance with local conditions.
Stora Enso favours permanent work contracts. Approximately 97% of permanent employees have full-time employment contracts.
Restructuring of operations to restore profitability to a level that would support long-term viability resulted personnel reductions in some of Stora Enso’s units. The biggest reductions were made in Wood Supply Russia, Wisconsin Rapids mills and Kimberly Mill.
Employees’ knowledge and well-being are a major part of Stora Enso’s intangible value. In 2004, employees received training amounting to an average of 3.4 days per employee. Occupational health costs excluding insurance and compensation costs totalled EUR 10.5 million during 2004.
Shareholders
Shareholders are rewarded through dividends and share prices. Stora Enso’s shares are listed in Helsinki, Stockholm and New York. At the end of December 2004, Stora Enso had approximately 76 000 shareholders.
Stora Enso’s objective is to pay stable dividends linked to the Group’s long-term performance. The objective of this dividend policy is to distribute at least one-half of net profits over a business cycle. Dividends paid in 2004 amounted EUR 375.7 million.
Stora Enso has been recognised as a leading company in sustainability in several investor ratings.
Civil society
In many locations, Stora Enso is the single largest employer. Many units have long traditions of working closely together with their local communities. Such co-operation includes shared infrastructure, regular meetings with unions and community, and providing district heating to the community. Stora Enso also contributed to activities reflecting corporate values through donations and sponsorships.
Investments in environmental improvements amounted to EUR 87 million. Stora Enso also carried out environmental remediation work or made a provision for future remediation in 18 sites.
In 2004, Stora Enso signed a long-term partnership agreement with UNICEF. Through annual cash contributions and voluntary initiatives Stora Enso intends to contribute a total sum of USD 2.5 million over a five-year period.
Governmental bodies
Net taxes totalled a positive EUR 108.8 million (EUR –67.0 million in 2003), the gain resulting from the release of EUR 240.5 million in deferred tax liabilities on the fair valuation of biological assets relating to the restructuring of forestland ownership in Sweden and a change in deferred taxes of EUR 20.0 million due to changes in Finnish tax laws. The tax charge excluding these two non-recurring items was EUR 151.7 million, a rate of 28.9% (31.7%).
Income tax expenses
| Finnish companies |
63.0 |
| Swedish companies |
-193.7 |
| German companies |
5.1 |
| Other companies |
16.8 |
| Total |
-108.8 |
The Group received subsidies amounting to a total of EUR 7.4 million (EUR 6.3 million), of which all were granted in Europe.
