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Note 3 Segment information

Stora Enso’s reportable segments are formed by five divisions, Consumer Board, Packaging Solutions, Biomaterials, Wood Products, Paper and segment Other.

The activities of the reportable segments are:

Consumer Board

The ambition of the Consumer Board division is to be the global benchmark in high-quality virgin fibre cartonboard and the preferred partner to customers and brand owners in the premium end-use packaging and graphical segments. Our wide board and barrier coating selection is suitable for the design and optimisation of packaging for liquid, food, pharmaceutical and luxury goods.

Packaging Solutions

Packaging Solutions division provides fibre-based board materials and corrugated packaging products and services designed for a wide array of applications. Our renewable high-end packaging solutions serve leading converters, brand owners, and retailers across multiple industries looking to optimise performance and drive innovation.

Biomaterials

Biomaterials division offers a wide variety of pulp grades to meet the demands of paper, board, tissue, textile and hygiene product producers. We also develop new ways to maximise the value extractable from the wood as well as other kinds of lignocellulosic biomasses. The extracted sugars and lignin hold potential for use in a range of applications.

Wood Products

Wood Products division provides versatile wood-based solutions for building and housing. Our product range covers all areas of construction, including massive wood elements and wood components. We also offer a variety of sawn timber goods, and pellets for sustainable heating. Our customers are mainly merchants and retailers, industrial integrators, and construction companies.

Paper

Paper division provides best-in-class paper solutions for the print media and office use. The wide selection covers papers made from virgin wood and recycled fibres. Our main customer groups include publishers, retailers, printing houses, merchants, converters, and office suppliers. We create value for our customers by providing competitive products and services that meet their quality and sustainability requirements.

Other

The segment Other includes the Nordic forest equity-accounted investments, Stora Enso’s shareholding in the energy company Pohjolan Voima, operations supplying wood to the Nordic and Baltic mills, plantations not connected to any mill site, and Group shared services and administration

Sales by segment
Year Ended 31 December
External Internal Total External Internal Total
EUR million 2017 2016
Consumer Board 2 501 15 2 516 2 331 11 2 342
Packaging Solutions 1 230 25 1 255 1 019 25 1 044
Biomaterials 1 096 387 1 483 981 395 1 376
Wood Products 1 573 96 1 669 1 488 107 1 595
Paper 2 857 63 2 920 3 175 70 3 245
Other 788 1 702 2 490 808 1 669 2 477
Elimination of internal sales - -2 288 -2 288 - -2 277 -2 277
Total 10 045 - 10 045 9 802 - 9 802

Sales include external service income of EUR 86 (EUR 76) million.

Segment share of operating profit/loss
Year Ended 31 December
Operating Profit/Loss
EUR million 2017 2016
Consumer Board 253 67
Packaging Solutions 166 42
Biomaterials 254 211
Wood Products 102 88
Paper 106 289
Other 23 86
Total 904 783
Net financial items -162 -242
Profit before Tax 742 541
Income tax expense -128 -134
Net Profit 614 407
Intangible asset and property, plant and equipment (PPE), depreciations, impairments and reversals, disposal gains and losses and capital expenditure by segment
Year Ended 31 December
Intangible Assets and PPE Depreciations/Impairments/
Reversals/
Disposal gains and losses
Capital Expenditure
EUR million 2017 2016 2017 2016 2017 2016
Consumer Board 1 611 1 639 160 158 187 312
Packaging Solutions 783 746 68 85 92 56
Biomaterials 1 825 2 108 109 109 90 92
Wood Products 429 403 35 30 58 72
Paper 951 945 114 -7 101 73
Other 177 188 29 23 32 33
Total 5 776 6 029 515 398 560 638

Goodwill by segment
Year Ended 31 December
Goodwill Impairment
EUR million 2017 2016 2017 2016
Consumer Board - - - -
Packaging Solutions 19 19 - 11
Biomaterials 28 32 - -
Wood Products 107 104 - -
Paper 83 83 - -
Other - - - -
Total 237 238 - 11
Average personnel
Year Ended 31 December Year Ended 31 December
Segment 2017 2016 Location 2017 2016
Consumer Board 4 168 4 118 Austria 939 912
Packaging Solutions 7 901 7 372 Baltic States 1 211 1 203
Biomaterials 1 768 1 797 Belgium 525 536
Wood Products 4 031 3 937 Czech Republic 875 810
Paper 5 022 5 786 Finland 6 675 6 667
Other 3 316 3 259 France 42 45
Total 26 206 26 269 Germany 1 063 1 465
Poland 2 033 1 930
Russia 1 088 1 093
Spain 16 15
Sweden 5 127 5 091
Other Europe 216 221
Total Europe 19 810 19 988
Brazil 421 475
China (incl. Hong Kong) 5 341 5 156
India - -
USA 96 88
As at 31 December Uruguay 327 344
2017 2016 Other countries 211 218
Year-End Personnel 25 657 25 447 Total 26 206 26 269

External sales by destination and origin
Year Ended 31 December
Sales by Destination Sales by Origin Balance of Trade
EUR million 2017 2016 2017 2016 2017 2016
Austria 278 279 375 357 97 78
Baltic States 243 237 273 266 30 29
Belgium 144 160 265 257 121 97
Czech Republic 151 146 257 243 106 97
Denmark 134 138 26 21 -108 -117
Finland 699 730 3 634 3 694 2 935 2 964
France 465 467 14 8 -451 -459
Germany 1 282 1 378 455 626 -827 -752
Italy 343 326 - - -343 -326
Netherlands 261 240 - 23 -261 -217
Poland 528 498 492 421 -36 -77
Russia 300 280 209 180 -91 -100
Spain 284 295 - - -284 -295
Sweden 965 981 2 733 2 704 1 768 1 723
UK 456 510 15 18 -441 -492
Other Europe 879 808 91 101 -788 -707
Total Europe 7 412 7 473 8 839 8 919 1 427 1 446
Australia / New Zealand 156 175 18 21 -138 -154
Brazil 62 72 300 276 238 204
China (incl. Hong Kong) 918 712 478 272 -440 -440
Japan 303 284 - - -303 -284
Middle East 238 240 - - -238 -240
Uruguay 28 28 399 306 371 278
USA 236 128 7 2 -229 -126
Other countries 692 690 4 6 -688 -684
Total 10 045 9 802 10 045 9 802 - -

Total assets, capital employed and shareholders' equity by location
As at 31 December
Total Assets Capital Employed Shareholders' Equity
EUR million 2017 2016 2017 2016 2017 2016
Austria 171 169 99 99 106 104
Baltic States 106 106 87 76 169 160
Belgium 256 276 167 182 188 208
Czech Republic 158 150 132 122 125 108
Finland 3 552 3 663 2 279 2 169 1 281 1 358
Germany 369 406 21 31 63 77
Poland 588 548 455 450 306 267
Russia 174 178 94 99 141 133
Sweden 2 743 2 783 1 795 1 814 1 372 879
Other Europe 112 110 64 46 221 211
Total Europe 8 229 8 389 5 193 5 088 3 972 3 505
Brazil 455 530 433 502 391 462
China (incl. Hong Kong) 1 326 1 386 1 100 1 143 400 480
Uruguay 1 556 1 781 1 473 1 703 1 106 1 181
USA 138 145 105 114 118 127
Other countries 66 95 4 44 21 51
Total 11 770 12 326 8 308 8 594 6 008 5 806
Total capital employed represents operating capital less net tax liabilities
Reconciliation of operating capital to total assets
As at 31 December
EUR million 2017 2016
Operating Capital 8 393 8 650
Operative liabilities 2 451 2 405
Interest-bearing receivables 763 1 048
Tax receivables 163 223
Total Assets 11 770 12 326
Operating capital (“O” items) is designated thus on the Balance Sheet and represents the sum of Intangible Asset and Property, Plant and Equipment, biological assets, emission rights, unlisted shares, other non-current assets, inventories, current operative receivables and liabilities, provisions and other non-current operative liabilities.

Intangible asset and property, plant and equipment (PPE), capital expenditure and depreciations, impairments and reversals, disposal gains and losses by location
Year Ended 31 December
Intangible Assets and PPE Depreciations/Impairments/
Reversals/
Disposal gains and losses
Capital Expenditure
EUR million 2017 2016 2017 2016 2017 2016
Austria 107 107 6 6 5 5
Baltic States 42 45 6 6 3 4
Belgium 202 222 25 50 5 12
Czech Republic 115 111 5 5 3 3
Finland 1 320 1 227 178 175 279 214
Germany 296 314 28 35 10 12
Poland 423 409 33 27 20 21
Russia 67 67 8 7 14 7
Sweden 787 765 103 181 150 82
Other Europe 4 12 - -6 1 -1
Total Europe 3 363 3 279 392 486 490 359
Brazil 248 306 30 24 13 11
China (incl. Hong Kong) 823 890 49 -157 38 218
Uruguay 1 227 1 426 40 41 13 15
USA 113 126 3 3 5 35
Other countries 2 2 1 1 1 -
Total 5 776 6 029 515 398 560 638

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