Extract from the parent company Stora Enso Oyj financial statements

Accounting principles

The Parent Company Financial Statements are prepared according to Generally Accepted Accounting Principles in Finland (Finnish GAAP); see Group Consolidated Financial Statements Note 1, Accounting Principles. The main differences between the accounting policies of the Group and the Parent Company relate to:


Accounting of amortisation of capitalised goodwill
The valuation of financial assets, financial liabilities, financial instruments and securities
Accounting of post-employment Defined Benefit Plans
The presentation and accounting of deferred tax
Accounting of equity incentive schemes
Accounting of financial leases.

Comparability of the information for the financial period

On 1 May 2017, Stora Enso’s paper business was transferred from the parent company to new companies to be established (Stora Enso Oulu Oy, Stora Enso Veitsiluoto Oy and Stora Enso Paper Oy). On 31 December 2017, the business transfer had the following effects: EUR -742.6 million on sales; -1 293 people on the number of personnel; EUR -200.9 million on tangible assets; and EUR -142.4 million on inventories.

On 1 April 2017, Stora Enso transferred the ownership and sales operations of the inventories of the Enocell and Sunila pulp mills to Stora Enso International Oyj.


 

Parent Company income statement
Year Ended 31 December
EUR million 2017 2016
Sales 2 913 3 453
Changes in inventories of finished goods and work in progress -14 -9
Production for own use 1 1
Other operating income 188 174
Materials and services -1 905 -2 167
Personnel expenses -255 -318
Depreciation and value adjustments -130 -145
Other operating expenses -569 -741
Operating Profit 229 248
Net financial items 146 -73
Profit before Appropriations and Taxes 375 175
Appropriations -10 -43
Net Profit for the Period 365 132

Parent Company statement of financial position
Assets
As at 31 December
EUR million 2017 2016
Fixed Assets and Non-current Investments
Intangible assets 75 85
Tangible assets 805 926
Shares in Group companies 6 139 6 179
Other investments 1 756 782
8 775 7 972
Current Assets
Inventories 247 442
Long-term receivables - 1
Short-term receivables 548 947
Deposit Group companies 816 -
Cash and cash equivalents 375 2 259
1 986 3 649
Total Assets 10 761 11 621
Equity and Liabilities
As at 31 December
EUR million 2017 2016
Share capital 1 342 1 342
Share premium 3 639 3 639
Fair value reserve 1 -17
Invested non-restricted equity fund 633 633
Retained earnings 562 722
Net profit for the period 365 132
6 542 6 451
Appropriations 209 180
Provisions 26 17
Non-current Liabilities 1 378 1 752
Current Liabilities 2 606 3 221
Total Equity and Liabilities 10 761 11 621

Parent Company cash flow statement
Year Ended 31 December
EUR million 2017 2016
Cash Provided by Operating Activities
Net profit for the period 365 132
Appropriations 10 43
Depreciation and value adjustments 130 145
Unrealised foreign exchange wins and losses 52 -29
Other non-cash items 12 -6
Financial income and expenses -146 73
Interest received 32 61
Interest paid net of amounts capitalised -105 -122
Dividends received 201 133
Other financial items paid net 37 -116
Income taxes paid -1 -1
Change in net working capital -12 110
Net Cash Provided by Operating Activities 575 423
Net Cash from Investing Activities
Capital expenditure -203 -154
Proceeds from sale of fixed assets 3 3
Purchases of other investments -7 -5
Investment in subsidiary shares -87 -91
Proceeds from disposal of subsidiary shares 61 -
Proceeds from disposal of shares in other companies 2 11
Proceeds from long-term receivables net -190 964
Net Cash Provided in Investing Activities -421 728
Cash Flow from Financing Activities
Proceeds from (payment of) long-term liabilities net -362 -587
Proceeds from (payment of) short-term borrowings net -546 827
Capital repayment / dividend per share paid/declared -292 -260
Net Cash Used in Financing Activities -1 200 -20
Net Increase (Decrease) in Cash and Cash Equivalents -1 046 1 131
Translation adjustment -7 5
Business transfers 1.5. -16 -
Cash and cash equivalents at start of year 2 259 1 123
Cash and Cash Equivalents at Year End 1 190 2 259

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