Stora Enso Salmisaarenaukio 2 P.O. Box 309 FI-00101 Helsinki, Finland Tel: + 358 20 46 111 www.storaenso.com | Business ID 1039050-8 VAT No FI 10390508 |
Report of the Board of Directors (unaudited) | |
Stora Enso introduction | |
Markets and deliveries | |
Financial results – Group | |
Financial results – Segments | |
Investments and capital expenditure | |
Changes in the Group structure | |
Innovation, research and development | |
Non-financial information | |
Environmental liabilities | |
EU taxonomy | |
Risks and risk management | |
Climate-related financial disclosures (TCFD) | |
Nature-related financial disclosures (TNFD) | |
Corporate governance | |
Legal proceedings | |
Changes in Group management | |
Share capital | |
Outlook and short-term risks | |
Annual General Meeting | |
Proposal for the distribution of dividend | |
Alternative performance measures | |
Consolidated financial statements (audited) | |
Consolidated income statement | |
Consolidated statement of comprehensive income | |
Consolidated statement of financial position | |
Consolidated cash flow statement | |
Supplemental cash flow information | |
Statement of changes in equity | |
Notes to the consolidated financial statements (audited) | |
1 Basis for reporting | |
1.1 Accounting principles | |
1.2 Critical accounting estimates and judgements | |
2 Financial performance | |
2.1 Segment information | |
2.2 Other operating income and expense | |
2.3 Depreciation, amortisation and impairment charges | |
2.4 Net financial items | |
2.5 Income taxes | |
2.6 Earnings per share | |
3 Employee remuneration | |
3.1 Personnel expenses | |
3.2 Board and executive remuneration | |
3.3 Post-employment benefit obligations | |
3.4 Employee variable compensation and equity incentive schemes | |
4 Operating capital | |
4.1 Intangible assets, property, plant and equipment and right-of-use assets | |
4.2 Forest assets | |
4.3 Associates |
4.4 Equity instruments | |
4.5 Emission rights and other non-current assets | |
4.6 Inventories | |
4.7 Operative receivables | |
4.8 Operative liabilities | |
4.9 Provisions | |
5 Capital structure and financing | |
5.1 Financial risk management | |
5.2 Fair values | |
5.3 Interest-bearing assets and liabilities | |
5.4 Derivatives | |
5.5 Shareholders' equity | |
5.6 Cumulative translation adjustment and equity hedging | |
5.7 Non-controlling interests | |
6 Group structure | |
6.1 Acquisitions, disposals and assets held for sale | |
6.2 Group companies | |
6.3 Related party transactions | |
7 Other | |
7.1 Commitments and contingencies | |
7.2 Events after the reporting period | |
Notes to the parent company financial statements (audited) | |
Signatures for the financial statements | |
Auditor's Report |
Tonnes, million | Europe | North America | Asia and Oceania |
Consumer board | 9.1 | 8.8 | 32.7 |
Containerboard | 33.9 | 31.8 | 94.9 |
Corrugated board (billion m2 )1 | 10.5 | n/a | n/a |
Chemical market pulp | 15.3 | 7.5 | 40.2 |
Sawn softwood (million m3) | 82.0 | 97.0 | 74.9 |
Newsprint | 2.7 | 1.1 | 5.2 |
Uncoated magazine paper | 1.5 | 0.7 | 0.1 |
1 European focus markets (Baltics, Benelux, FI, PL, SE) Source: Afry, CEPI, Numera, PPPC, Stora Enso, Forest Economic Advisors (FEA) |
2023 | 2022 | Change % 2023–2022 | |
Board deliveries1, 1,000 tonnes | 3,927 | 4,294 | -8.6% |
Board production1, 1,000 tonnes | 4,185 | 4,682 | -10.6% |
Corrugated packaging European deliveries, million m2 | 1,167 | 741 | 57.5% |
Corrugated packaging European production, million m2 | 1,094 | 771 | 41.9% |
Market pulp deliveries, 1,000 tonnes | 2,220 | 2,374 | -6.5% |
Wood products deliveries, 1,000 m3 | 3,897 | 4,397 | -11.4% |
Wood deliveries, 1,000 m3 | 13,667 | 13,304 | 2.7% |
Paper deliveries, 1,000 tonnes | 761 | 1,924 | -60.5% |
Paper production, 1,000 tonnes | 752 | 1,926 | -60.9% |
2023 | 2022 | 2021 | |
Sales, EUR million | 9,396 | 11,680 | 10,164 |
Operational EBIT, EUR million | 342 | 1,891 | 1,528 |
Operational EBIT margin | 3.6% | 16.2% | 15.0% |
Operating result (IFRS), EUR million | -322 | 2,009 | 1,568 |
Operating result margin (IFRS) | -3.4% | 17.2% | 15.4% |
Return on equity (ROE) | -3.8% | 13.3% | 13.0% |
Operational ROCE | 2.4% | 13.7% | 12.5% |
Operational ROCE excl. Forest division | 1.0% | 20.4% | 17.7% |
Net debt/equity ratio | 0.29 | 0.15 | 0.22 |
EPS (basic), EUR | -0.45 | 1.97 | 1.61 |
EPS excluding FV, EUR | -0.73 | 1.55 | 1.19 |
Dividend and distribution per share1, EUR | 0.10 | 0.60 | 0.55 |
Payout ratio, excluding FV | -13.7% | 38.6% | 46.3% |
Payout ratio (IFRS) | -22.1% | 30.5% | 34.3% |
Dividend and distribution yield, (R share) | 0.8% | 4.6% | 3.4% |
Price/earnings (R share), excluding FV | -17.17 | 8.46 | 13.60 |
Equity per share, EUR | 13.93 | 15.89 | 13.55 |
Market capitalisation 31 Dec, EUR million | 9,864 | 10,503 | 12,809 |
Closing price 31 Dec, A share, EUR | 12.45 | 13.90 | 16.60 |
Closing price 31 Dec, R share, EUR | 12.53 | 13.15 | 16.14 |
Average price, A share, EUR | 12.82 | 16.58 | 16.68 |
Average price, R share, EUR | 11.93 | 16.12 | 15.70 |
Number of shares 31 Dec (thousands) | 788,620 | 788,620 | 788,620 |
Trading volume A shares (thousands) | 968 | 1,174 | 1,750 |
% of total number of A shares | 0,5 % | 0.7% | 1.0% |
Trading volume R shares (thousands) | 476,654 | 455,952 | 422,493 |
% of total number of R shares | 77,8 % | 74.5% | 69.0% |
Average number of shares, basic (thousands) | 788,620 | 788,620 | 788,620 |
Average number of shares, diluted (thousands) | 789,714 | 789,391 | 789,126 |
1 It is proposed that the Board would be authorised to decide on an additional dividend payment of a maximum of EUR 0.20.The authorisation would be valid until 31 December 2024. See the Board of Directors' proposal for dividend distribution. |
EUR million | Capital Employed |
31 December 2022 | 14,356 |
Capital expenditure excluding investments in biological assets less depreciation | 521 |
Investments in biological assets less depletion of capitalised silviculture costs | -5 |
Impairments and reversal of impairments | -770 |
Fair valuation of forest assets | 241 |
Unlisted securities (mainly PVO) | -627 |
Associated companies | 94 |
Net liabilities in defined benefit plans | -31 |
Operative working capital and other interest-free items, net | -344 |
Emission rights | -85 |
Net tax liabilities | 170 |
Acquisition of subsidiary companies | 818 |
Disposal of subsidiary companies | -227 |
Translation difference | -60 |
Other changes | 4 |
31 December 2023 | 14,056 |
EUR million | 2023 | 2022 |
Operational EBITDA | 989 | 2,529 |
IAC on operational EBITDA | -126 | -133 |
Other adjustments | -210 | -62 |
Change in working capital | 300 | -461 |
Cash flow from operations | 954 | 1,873 |
Cash spent on fixed and biological assets | -989 | -705 |
Acquisitions of associated companies | -5 | -7 |
Cash flow after investing activities | -40 | 1,162 |
Rating agency | Long/short-term rating | Valid from |
Fitch Ratings | BBB- (stable) | 4 August 2023 |
Moody’s | Baa3 (stable) / P-3 | 17 November 2023 |
EUR million | 2023 | 2022 |
Sales | 4,557 | 5,496 |
Operational EBITDA | 267 | 993 |
Operational EBITDA margin | 5.9% | 18.1% |
Operational EBIT | -57 | 655 |
Operational EBIT margin | -1.3% | 11.9% |
Fair valuations and non-operational items (FV)1 | 12 | 7 |
Items affecting comparability (IAC)1 | -597 | -9 |
Operating result (IFRS) | -642 | 653 |
Operating capital, average | 3,580 | 3,512 |
Operational ROOC | -1.6% | 18.6% |
Cash flow from operations | 370 | 823 |
Cash flow after investing activities | -235 | 488 |
Board deliveries, 1,000 tonnes | 4,963 | 5,425 |
Board production, 1,000 tonnes | 4,843 | 5,502 |
EUR million | 2023 | 2022 |
Sales | 1,077 | 727 |
Operational EBITDA | 111 | 42 |
Operational EBITDA margin | 10.3% | 5.7% |
Operational EBIT | 43 | 16 |
Operational EBIT margin | 4.0% | 2.2% |
Items affecting comparability (IAC)1 | -26 | -98 |
Operating result (IFRS) | 17 | -81 |
Operating capital, average | 874 | 204 |
Operational ROOC | 4.9% | 7.9% |
Cash flow from operations | 145 | 11 |
Cash flow after investing activities | 62 | -14 |
Corrugated packaging European deliveries, million m2 | 1,178 | 767 |
Corrugated packaging European production, million m2 | 1,094 | 771 |
EUR million | 2023 | 2022 |
Sales | 1,587 | 2,180 |
Operational EBITDA | 256 | 822 |
Operational EBITDA margin | 16.1% | 37.7% |
Operational EBIT | 118 | 687 |
Operational EBIT margin | 7.4% | 31.5% |
Fair valuations and non-operational items (FV)1 | 25 | -17 |
Items affecting comparability (IAC)1 | -224 | -2 |
Operating result (IFRS) | -81 | 668 |
Operating capital, average | 2,625 | 2,715 |
Operational ROOC | 4.5% | 25.3% |
Cash flow from operations | 431 | 682 |
Cash flow after investing activities | 234 | 536 |
Pulp deliveries, 1,000 tonnes | 2,277 | 2,554 |
EUR million | 2023 | 2022 |
Sales | 1,580 | 2,195 |
Operational EBITDA | -17 | 356 |
Operational EBITDA margin | -1.0% | 16.2% |
Operational EBIT | -64 | 309 |
Operational EBIT margin | -4.1% | 14.1% |
Items affecting comparability (IAC)1 | -22 | -56 |
Operating result (IFRS) | -86 | 253 |
Operating capital, average | 687 | 714 |
Operational ROOC | -9.3% | 43.2% |
Cash flow from operations | 43 | 346 |
Cash flow after investing activities | 3 | 264 |
Wood products deliveries, 1,000 m3 | 3,727 | 4,235 |
EUR million | 2023 | 2022 |
Sales | 2,490 | 2,519 |
Operational EBITDA | 305 | 256 |
Operational EBITDA margin | 12.2% | 10.2% |
Operational EBIT | 253 | 204 |
Operational EBIT margin | 10.2% | 8.1% |
Fair valuations and non-operational items (FV)1 | 206 | 367 |
Items affecting comparability (IAC)1 | 2 | -48 |
Operating result (IFRS) | 461 | 523 |
Capital employed, average | 5,740 | 5,518 |
Operational ROCE | 4.4% | 3.7% |
Cash flow from operations | 70 | 146 |
Cash flow after investing activities | 19 | 91 |
Wood deliveries, 1,000 m3 | 32,401 | 38,217 |
Operational fair value change of biological assets | 120 | 87 |
EUR million | 2023 | 2022 |
Sales | 964 | 2,150 |
Operational EBITDA | 18 | 102 |
Operational EBITDA margin | 1.9% | 4.7% |
Operational EBIT | 1 | 63 |
Operational EBIT margin | 0.1% | 2.9% |
Fair valuations and non-operational items (FV)1 | -13 | 6 |
Items affecting comparability (IAC)1 | -28 | -33 |
Operating result (IFRS) | -41 | 36 |
Cash flow from operations | -105 | -136 |
Cash flow after investing activities | -123 | -203 |
EUR million | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') | |||||||||||||||||
Economic Activities | Code | Turnover | Proportion of turnover year 2023 | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned or eligible turnover year 2022 | Category enabling activity | Category transition al activity |
EUR | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T | ||
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||||||
A.1. Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Forest management | CCM 1.3 | 100% | |||||||||||||||||
Manufacture of energy efficiency equipment for buildings | CCM 3.5 | 413 | 4.4% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E | |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 41 | 0.4% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | n/a | Y | Y | 96.6% | ||
Turnover of environmentally sustainable activities (Taxonomy- aligned) (A.1) | 454 | 4.8% | 100% | 99.7% | |||||||||||||||
413 | 4.4% | 100% | 78.3% | E | |||||||||||||||
T | |||||||||||||||||||
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
Forest management | CCM 1.3 | 118 | 1.3% | —% | |||||||||||||||
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 2 | 0.0% | 3.4% | |||||||||||||||
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 119 | 1.3% | 0.3% | ||||||||||||||||
A.Turnover of Taxonomy eligible activities (A.1+A.2) | 574 | 6.1% | 100% | ||||||||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
Turnover of Taxonomy-non-eligible activities | 8,836 | 93.9% | |||||||||||||||||
TOTAL1 | 9,410 | 100% |
EUR million | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') | |||||||||||||||||
Economic Activities | Code | Capex | Proportion of capex year 2023 | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned or eligible capex year 2022 | Category enabling activity | Category transition al activity |
EUR | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T | ||
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||||||
A.1. Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Forest management | CCM 1.3 | 100% | |||||||||||||||||
Manufacture of batteries | CCM 3.4 | — | 0.0% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E | |
Manufacture of energy efficiency equipment for buildings | CCM 3.5 | 4 | 0.4% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E | |
District heating/cooling distribution | CCM 4.15 | 100% | |||||||||||||||||
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 57 | 5.1% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | n/a | Y | Y | 70.1% | ||
Installation, maintenance and repair of renewable energy technologies | CCM 7.6 | 3 | 0.3% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | n/a | n/a | n/a | n/a | Y | —% | E | |
Capex of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 64 | 5.7% | 100% | 94.3% | |||||||||||||||
Of which Enabling | 7 | 0.6% | 100% | 54.9% | E | ||||||||||||||
Of which Transitional | T | ||||||||||||||||||
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
Forest management | CCM 1.3 | 7 | 0.6% | —% | |||||||||||||||
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 4 | 0.3% | 29.9% | |||||||||||||||
Capex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites) (A.2) | 10 | 0.9% | 5.7% | ||||||||||||||||
A.Capex of Taxonomy eligible activities (A.1+A.2) | 75 | 6.6% | 100% | ||||||||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
Capex of Taxonomy-non-eligible activities | 1,051 | 93.4% | |||||||||||||||||
TOTAL | 1,125 | 100% |
EUR million | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') | |||||||||||||||||
Economic Activities | Code | Opex | Proportion of opex year 2023 | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned or eligible opex year 2022 | Category enabling activity | Category transition al activity |
EUR | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | E | T | |||
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||||||
A.1. Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Forest management | CCM 1.3 | 100% | |||||||||||||||||
Conservation forestry | CCM 1.4 | 100% | |||||||||||||||||
Remediation of contaminated sites and areas | PPC 2.4 | 6 | 0.7% | n/a | n/a | n/a | Y | n/a | n/a | Y | Y | Y | n/a | Y | Y | Y | —% | ||
Manufacture of batteries | CCM 3.4 | 21 | 2.6% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E | |
Manufacture of energy efficiency equipment for buildings | CCM 3.5 | 20 | 2.5% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E | |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 32 | 4.1% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | n/a | Y | Y | 52.9% | ||
Opex of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 78 | 9.9% | 92.7% | 7.3% | 82.9% | ||||||||||||||
Of which Enabling | 41 | 5.2% | 100% | 45.0% | E | ||||||||||||||
Of which Transitional | T | ||||||||||||||||||
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
Forest management | CCM 1.3 | 23 | 2.9% | —% | |||||||||||||||
Conservation forestry | CCM 1.4 | 1 | 0.1% | —% | |||||||||||||||
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 6 | 0.7% | 47.1% | |||||||||||||||
Opex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites) (A.2) | 30 | 3.8% | 17.1% | ||||||||||||||||
A.Opex of Taxonomy eligible activities (A.1+A.2) | 108 | 13.7% | 100% | ||||||||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
Opex of Taxonomy-non-eligible activities | 681 | 86.3% | |||||||||||||||||
TOTAL | 790 | 100% |
Segments | Price | Volume |
Packaging Materials | 434 | 110 |
Packaging Solutions | 107 | 43 |
Biomaterials | 143 | 52 |
Wood Products | 152 | 32 |
Forest | 246 | 6 |
Operative costs | % of costs | % of sales |
Logistics and commissions | 10% | 10% |
Manufacturing costs | ||
Fiber | 33% | 32% |
Chemicals and fillers | 9% | 8% |
Energy | 7% | 7% |
Material | 10% | 9% |
Personnel | 14% | 14% |
Other | 11% | 11% |
Depreciation | 6% | 6% |
Total costs and sales | 100% | 97% |
Total operative costs and sales in EUR million | 9,130 | 9,396 |
Associated companies, operational | 76 | |
Operational EBIT (EUR million) | 342 |
A shares | R shares | Total | |
Number of shares | 176,230,916 | 612,389,071 | 788,619,987 |
Number of votes (at least) | 176,230,916 | 61,238,907 | 237,469,823 |
By voting power | A shares | R shares | % of votes | ||
1 | Solidium Oy1 | 62,655,036 | 21,792,540 | 10,7 % | 27,3 % |
2 | FAM AB2 | 63,123,386 | 17,000,000 | 10,2 % | 27,3 % |
3 | Social Insurance Institution of Finland | 23,825,086 | — | 3,0 % | 10,0 % |
4 | Ilmarinen Mutual Pension Insurance Company | 4,159,992 | 15,290,638 | 2,5 % | 2,4 % |
5 | Varma Mutual Pension Insurance Company | 5,163,018 | 1,140,874 | 0,8 % | 2,2 % |
6 | MP-Bolagen i Vetlanda AB | 4,885,000 | 1,000,000 | 0,7 % | 2,1 % |
7 | Elo Mutual Pension Insurance Company | 2,010,000 | 9,987,000 | 1,5 % | 1,3 % |
8 | Bergslaget's Healthcare Foundation | 626,269 | 1,609,483 | 0,3 % | 0,3 % |
9 | The State Pension Fund | — | 5,600,000 | 0,7 % | 0,2 % |
10 | The Society of Swedish Literature in Finland | — | 3,000,000 | 0,4 % | 0,1 % |
11 | Avanza Pension Insurance | 142,664 | 1,372,515 | 0,2 % | 0,1 % |
12 | OP Finland Fund | — | 2,549,753 | 0,3 % | 0,1 % |
13 | Danske Invest Finnish Equity Fund | — | 2,435,000 | 0,3 % | 0,1 % |
14 | Unionen (Swedish trade union) | — | 2,312,750 | 0,3 % | 0,1 % |
15 | EVLI Finland Select Fund | — | 1,940,000 | 0,2 % | 0,1 % |
Total | 87,030,553 | 32,2 % | 73,8 % | ||
Nominee-registered shares3 | 75,045,090 | 71,3 % | 52,1 % | ||
1 Entirely owned by the Finnish State 2 As confirmed to Stora Enso 3 According to Euroclear Finland The list has been compiled by the Company on the basis of shareholder information obtained from Euroclear Finland, Euroclear Sweden and a database managed by Citibank, N.A (Citi). This information includes only directly registered holdings, thus certain holdings (which may be substantial) of shares held in nominee or brokerage accounts are not included. The list is therefore incomplete. |
By size of holding, A share1) | Shareholders | % of shareholders | Shares | % of shares |
1–100 | 7,111 | 59.83% | 273,712 | 0.16% |
101–1,000 | 4,211 | 35.43% | 1,474,615 | 0.84% |
1,001–10,000 | 529 | 4.45% | 1,222,373 | 0.69% |
10,001–100,000 | 24 | 0.20% | 559,602 | 0.32% |
100,001–1,000,000 | 2 | 0.02% | 347,113 | 0.20% |
1,000,001– | 8 | 0.07% | 172,353,501 | 97.80% |
Total | 11,885 | 100.00% | 176,230,916 | 100.00% |
By size of holding, R share1) | Shareholders | % of shareholders | Shares | % of shares |
1–100 | 17,659 | 37.87% | 840,387 | 0.14% |
101–1,000 | 22,681 | 48.64% | 8,919,537 | 1.45% |
1,001–10,000 | 5,813 | 12.47% | 15,389,391 | 2.51% |
10,001–100,000 | 408 | 0.88% | 10,699,825 | 1.75% |
100,001–1,000,000 | 47 | 0.10% | 16,081,788 | 2.63% |
1,000,001– | 23 | 0.05% | 560,458,143 | 91.53% |
Total | 46,631 | 100.00% | 612,389,071 | 100.00% |
1) According to Euroclear Finland. This list includes only directly registered shares in Euroclear Finland. E.g. Stora Enso's Swedish shareholders are listed under their nominee bank in this list. Therefore, this listing is not comparable with the table Major shareholders as of 31 December 2023 |
% of shares | % of votes | |
Solidium Oy1 | 10.7% | 27.3% |
FAM AB2 | 10.2% | 27.3% |
Social Insurance Institution of Finland (KELA) | 3.0% | 10.0% |
Finnish institutions (excl. Solidium and KELA) | 11.0% | 8.1% |
Swedish institutions (excl. FAM) | 1.1% | 0.9% |
Finnish private shareholders | 3.9% | 2.4% |
Swedish private shareholders | 3.0% | 2.2% |
ADR holders | 1.6% | 0.5% |
Under nominee names (non-Finnish/non-Swedish shareholders) | 55.4% | 21.3% |
1 Entirely owned by the Finnish State 2 As confirmed to Stora Enso |
Alternative performance measures | Definition | Purpose |
Operating result (IFRS) | Net result for the period excluding income tax and net financial items (finance costs). | Used in combination with below measures to determine the profitability of the Group. |
Operational EBIT | Operating result (IFRS) excluding items affecting comparability (IAC) and fair valuations and non-operational items (FV) of the line-by-line consolidated entities and Stora Enso’s share of operating result excluding IAC and FV of its associated companies. | The Group’s key non-IFRS performance metric, which is used to evaluate the performance of operating segments and, in combination with below ratios, to steer allocation of resources to them. |
Operational EBITDA | Operating result (IFRS) excluding silviculture costs and damage to forests, fixed asset depreciation and impairment, IACs and FV. The definition includes the respective items of subsidiaries, joint arrangements and associated companies. | Used by management to analyse the business and, from time-to-time, for short term and long-term target setting. |
Operational return on capital employed, operational ROCE, LTM3 (%) | Operational EBIT3 x 100 Capital employed1 | Used for long-term Group financial targets setting. |
Operational return on operating capital, operational ROOC, LTM3 (%) | Operational EBIT3 x 100 Operating capital 1 | Used for long-term divisional financial targets setting. |
Return on equity, ROE, LTM3 (%) | Net result for the period x 100 Total equity1 | A measure of the profitability in relation to equity. |
Net debt | Interest-bearing liabilities – interest-bearing assets, marked with “I” in the statement of financial position. | Used for long-term Group financial targets setting. |
Net debt/equity ratio | Net debt Equity2 | Used for long-term Group financial targets setting. |
Net debt/last 12 months’ operational EBITDA ratio | Net debt LTM operational EBITDA | Used for long-term Group financial targets setting. |
Earnings per share (EPS) excluding FV | Net result for the period excluding fair valuations and non-operational items after tax divided by the weighted average number of shares | Stora Enso's dividend policy is to distribute 50% of earnings per share (EPS) excluding fair valuation over the cycle. |
Operating capital and capital employed | Operating capital is comprised of items marked with “O” in the statement of financial position. Capital employed = Operating capital – Net tax liabilities. Net tax liabilities are marked with "T" in the statement of financial position. | Used for long-term Group financial targets setting. |
Items affecting comparability (IAC) | The most common IAC are significant capital gains and losses, impairments or impairment reversals, disposal gains and losses relating to Group companies, provisions for planned restructurings, environmental provisions, changes in depreciation due to restructuring and penalties. Items affecting comparability are normally disclosed individually if they exceed one cent per share. | Represent certain significant items, identified by the management, considered not indicative of the operating business performance due to their nature and/or frequency. |
Fair valuations and non-operational items (FV) | Fair valuations and non-operational items include non-cash income and expenses related to CO2 emission rights and liabilities, non-operational fair valuation changes of biological assets, adjustments for differences between fair value and acquisition cost of forest assets upon disposal and the Group’s share of income tax and net financial items of associated companies. Non-operational fair value changes of biological assets reflect changes made to valuation assumptions and parameters. The adjustments for differences between fair value and acquisition cost of forest assets upon disposal are a result of the fact that the cumulative non-operational fair valuation changes of disposed forest assets were included in previous periods in IFRS operating result (biological assets) and other comprehensive income (forest land) and are included in operational EBIT only at the disposal date (for non-strategic forest assets disposals). | Represent adjustments for certain items considered by the management less relevant for understanding operating business performance. These adjustments result in differences in the recognition and measurement principles applicable under IFRS. |
Operational fair value change of biological assets | Operational fair value changes of biological assets contain all other fair value changes (see above about non-operational fair value changes of biological assets), mainly due to inflation and differences in actual harvesting levels compared to the harvesting plan. | The long-term value change of the growing forests is an important component of the forestry business profitability. |
Cash flow from operations (non-IFRS) and Cash flow after investing activities (non-IFRS) | Cash flow from operations (non-IFRS) is equal to Net cash provided by operating activities (IFRS) before cash flows related to financial items and income taxes. Cash flow after investing activities (non-IFRS) is equal to Cash flow from operations (non-IFRS) minus cash spent on intangible assets, property, plant and equipment, and biological assets and acquisitions of associated companies. | These are measures of cash generation, working capital efficiency and capital expenditure outflows. |
Capital expenditure | Capital expenditure on fixed assets includes investments in and acquisitions of tangible and intangible assets as well as internally generated assets and capitalised borrowing costs, net of any related subsidies. Capital expenditure on leased assets includes new capitalised leasing contracts. Capital expenditure on biological assets consists of acquisitions of biological assets and capitalisation of costs directly linked to growing trees in plantation forests. The cash flow impact of capital expenditure is presented in cash flow from investing activities, excluding lease capex, where the cash flow impact is based on paid lease liabilities and presented in cash flow from financing and operating activities. | A measure of the operating business investments capitalised as tangible and intangibles assets. |
Fixed costs | Maintenance, personnel and other administration type of costs, excluding IAC and FV. | A measure of the costs that are less variable in nature. |
EUR million | 2023 | 2022 | 2021 |
Operational EBIT | 342 | 1,891 | 1,528 |
Capital employed, average | 14,230 | 13,795 | 12,243 |
Operational ROCE | 2.4% | 13.7% | 12.5% |
Operational EBIT excl. Forest division | 89 | 1,687 | 1,262 |
Capital employed excl. Forest division, average | 8,490 | 8,276 | 7,120 |
Operational ROCE excl. Forest division | 1.0% | 20.4% | 17.7% |
Net result for the period | -431 | 1,536 | 1,268 |
Total equity, average | 11,413 | 11,532 | 9,730 |
Return on equity (ROE) | -3.8% | 13.3% | 13,0 % |
Net debt | 3,167 | 1,853 | 2,309 |
Operational EBITDA | 989 | 2,529 | 2,184 |
Net debt to operational EBITDA ratio | 3.2 | 0.7 | 1.1 |
EUR million | 2023 | 2022 | 2021 |
Earnings per share (EPS) excl. FV EUR | |||
Net result for the period attributable to owners of the Parent | -357 | 1,550 | 1,266 |
FV on net result for the period attributable to owners of the Parent | 218 | 324 | 330 |
Net result for the period attributable to owners of the parent excl. FV | -575 | 1,225 | 936 |
Average number of shares | 789 | 789 | 789 |
Earnings per share (EPS) excl. FV EUR | -0.73 | 1.55 | 1.19 |
EUR million | 2023 | 2022 | 2021 |
Operational EBITDA | 989 | 2,529 | 2,184 |
Depreciation and silviculture costs of associated companies | -11 | -11 | -11 |
Silviculture costs1 | -102 | -100 | -89 |
Depreciation and impairment excl. IAC | -534 | -527 | -555 |
Operational EBIT | 342 | 1,891 | 1,528 |
Fair valuations and non-operational items | 231 | 363 | 394 |
Items affecting comparability (IAC) | -895 | -245 | -354 |
Operating result (IFRS) | -322 | 2,009 | 1,568 |
Operational EBIT | IAC, fair valuations and non-operational items | Operating profit/loss | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Packaging Materials | -57 | 655 | -585 | -2 | -642 | 653 |
Packaging Solutions | 43 | 16 | -27 | -98 | 17 | -81 |
Biomaterials | 118 | 687 | -199 | -19 | -81 | 668 |
Wood Products | -64 | 309 | -22 | -56 | -86 | 253 |
Forest | 253 | 204 | 208 | 319 | 461 | 523 |
Other | 1 | 63 | -42 | -27 | -41 | 36 |
Total | 342 | 1,891 | -664 | 118 | -322 | 2,009 |
Net financial items | -173 | -151 | ||||
Profit before Tax | -495 | 1,858 | ||||
Income tax expense | 64 | -322 | ||||
Net Profit | -431 | 1,536 |
EUR million | 2023 |
Impairments - Packaging Materials | -468 |
Impairments - Biomaterials | -103 |
Impairments - Wood Products | -16 |
Impairments - Segment Other | -14 |
Impairment reversal - Forest | 5 |
Disposal of Nymölla | -30 |
Disposal of Hylte | -45 |
Disposal of Maxau | 52 |
Disposal of biocomposite business | -15 |
Disposal of Wood Products DIY unit | -4 |
Disposals related transaction costs | -6 |
Acquisition of De Jong Packaging Group | -16 |
Closure of Sunila pulp mill | -116 |
Closure of De Hoop | -79 |
Restructuring - Anjala | -26 |
Restructuring - Packaging Materials | -21 |
Restructuring - Packaging Solutions | -10 |
Restructuring - Wood Products | -5 |
Restructuring - Biomaterials | -4 |
Restructuring - Group functions | -15 |
Restructuring (2021 announced) - Kvarnsveden | 29 |
Restructuring (2021 announced) - Veitsiluoto | 9 |
Updates in environmental provisions | -5 |
Other items | -2 |
Total | -895 |
EUR million | 2022 |
Disposal of Russian operations - Packaging Solutions | -93 |
Disposal of Russian operations - Wood Products | -56 |
Disposal of Russian operations - Forest | -43 |
Disposal of Russian operations - other divisions | -6 |
Impairments, transaction costs and other items related to the upcoming paper site disposals (Nymölla, Hylte and Maxau) | -28 |
Disposal of Kvarnsveden site | 8 |
Impairments - Forest | -5 |
Impairments - Segment Other | -2 |
Restructuring (2021 announced) - Kvarnsveden | 13 |
Restructuring (2021 announced) - Veitsiluoto | -10 |
Restructuring - Packaging Materials | -4 |
Restructuring - Packaging Solutions | -5 |
Restructuring - Biomaterials | -4 |
Updates in environmental provisions (mainly closed Finnish sites | -13 |
Other items | -3 |
Total | -245 |
EUR million | 2023 | 2022 |
Non-operational fair valuation changes of biological assets, Packaging Materials | 12 | 7 |
Non-operational fair valuation changes of biological assets, Biomaterials | 25 | -17 |
Non-operational fair valuation changes of biological assets, Forest | 156 | 201 |
Non-cash income and expenses related to CO2 emission rights and liabilities, Other | -13 | 6 |
Non-operational items of associated companies, Forest | 56 | 169 |
Adjustments for differences between fair value and acquisition cost of forest assets upon disposal, Forest | -5 | -3 |
Total | 231 | 363 |
EUR million | 31 Dec 2023 | 31 Dec 2022 |
Listed securities | 9 | 8 |
Non-current interest-bearing receivables | 76 | 120 |
Current interest-bearing receivables | 64 | 77 |
Cash and cash equivalents | 2,464 | 1,917 |
Interest-bearing assets | 2,613 | 2,122 |
Non-current interest-bearing liabilities | 4,446 | 2,792 |
Current portion of non-current debt | 286 | 667 |
Current interest-bearing liabilities | 476 | 513 |
Interest-bearing liabilities held-for-sale | 571 | 4 |
Interest-bearing liabilities | 5,780 | 3,976 |
Net debt | 3,167 | 1,853 |
Year ended 31 December | |||
EUR million | Note | 2023 | 2022 |
Sales | 2.1 | ||
Other operating income | 2.2 | ||
Changes in inventories of finished goods and work in progress | - | ||
Materials and services | - | - | |
Freight and sales commissions | - | - | |
Personnel expenses | 3.1 | - | - |
Other operating expenses | 2.2 | - | - |
Share of results of associated companies | 4.3 | ||
Change in net value of biological assets | 4.2 | ||
Depreciation, amortisation and impairment charges | 2.3 | - | - |
Operating result | 2.1 | - | |
Financial income | 2.4 | ||
Financial expense | 2.4 | - | - |
Result before Tax | - | ||
Income tax | 2.5 | - | |
Net result for the year | - | ||
Attributable to | |||
Owners of the Parent | 5.5 | - | |
Non-controlling Interests | 5.7 | - | - |
Net result for the year | - | ||
Earnings per share | |||
Basic earnings per share, EUR | 2.6 | - | |
Diluted earnings per share, EUR | 2.6 | - |
Year ended 31 December | |||
EUR million | Note | 2023 | 2022 |
Net result for the year | - | ||
Other Comprehensive Income (OCI) | |||
Items that will not be reclassified to profit and loss | |||
Equity instruments at fair value through OCI | 4.4 | - | |
Actuarial gains and losses on defined benefit plans | 3.3 | - | |
Revaluation of forest land | 4.2 | - | |
Share of OCI of associated companies | 4.3 | - | |
Income tax relating to items that will not be reclassified | 2.5 | - | |
- | |||
Items that may be reclassified subsequently to profit and loss | |||
Cumulative translation adjustment (CTA) | 5.6 | - | |
Net investment hedges and loans | 5.6 | - | - |
Cash flow hedges and cost of hedging | 5.4 | - | |
Share of OCI of non-controlling interests (NCI) | 5.7 | ||
Income tax relating to items that may be reclassified | 2.5 | - | - |
- | |||
Total comprehensive income | - | ||
Attributable to | |||
Owners of the Parent | - | ||
Non-controlling interests | 5.7 | - | - |
Total comprehensive income | - | ||
The accompanying Notes are an integral part of these consolidated financial statements. |
As at 31 December | ||||
EUR million | Note | 2023 | 2022 | |
Assets | ||||
Goodwill | O | 4.1 | ||
Other intangible assets | O | 4.1 | ||
Property, plant and equipment | O | 4.1 | ||
Right-of-use assets | O | 4.1 | ||
Forest assets | O | 4.2 | ||
Biological assets | O | 4.2 | ||
Forest land | O | 4.2 | ||
Emission rights | O | 4.5 | ||
Investments in associated companies | O | 4.3 | ||
Listed securities | I | 4.4 | ||
Unlisted securities | O | 4.4 | ||
Non-current interest-bearing receivables | I | 5.3 | ||
Deferred tax assets | T | 2.5 | ||
Other non-current assets | O | 4.5 | ||
Non-current assets | ||||
Inventories | O | 4.6 | ||
Tax receivables | T | |||
Operative receivables | O | 4.7 | ||
Interest-bearing receivables | I | 5.3 | ||
Cash and cash equivalents | I | |||
Current assets | ||||
Assets held for sale | 6.1 | |||
Total assets |
As at 31 December | ||||
EUR million | Note | 2023 | 2022 | |
Equity and liabilities | ||||
Share capital | 5.5 | |||
Share premium | ||||
Invested non-restricted equity fund | ||||
Fair value reserve | ||||
Cumulative translation adjustment | 5.6 | - | - | |
Retained earnings | ||||
Equity attributable to owners of the Parent | ||||
Non-controlling Interests | 5.7 | - | - | |
Total equity | ||||
Post-employment benefit obligations | O | 3.3 | ||
Provisions | O | 4.9 | ||
Deferred tax liabilities | T | 2.5 | ||
Non-current interest-bearing liabilities | I | 5.3 | ||
Non-current operative liabilities | O | 4.8 | ||
Non-current liabilities | ||||
Current portion of non-current debt | I | 5.3 | ||
Interest-bearing liabilities | I | 5.3 | ||
Provisions | O | 4.9 | ||
Operative liabilities | O | 4.8 | ||
Tax liabilities | T | 2.5 | ||
Current liabilities | ||||
Liabilities related to assets held for sale | 6.1 | |||
Total liabilities | ||||
Total equity and liabilities | ||||
Items designated "O" comprise Operating Capital, items designated "I" comprise Interest-bearing Net Liabilities, items designated "T" comprise Net Tax Liabilities. The accompanying Notes are an integral part of these consolidated financial statements. |
Year ended 31 December | |||
EUR million | Note | 2023 | 2022 |
Cash flow from operating activities | |||
Net result for the year | - | ||
Adjustments and reversal of non-cash items: | |||
Taxes | 2.5 | - | |
Depreciation and impairment charges | 2.3 | ||
Change in value of biological assets | 4.2 | - | - |
Change in fair value of share awards | - | ||
Share of results of associated companies | 4.3 | - | - |
CTA and profits and losses on sale of fixed assets and investments1 | 2.2 | - | |
Net financial items | 2.4 | ||
Other adjustments | |||
Dividends received from associated companies | 4.3 | ||
Interest received | |||
Interest paid | - | - | |
Other financial items, net | - | - | |
Income taxes paid | 2.5 | - | - |
Change in net working capital, net of businesses acquired or sold | - | ||
Net cash provided by operating activities | |||
Cash flow from investing activities | |||
6.1 | - | ||
Acquisition of shares in associated companies | 4.3 | - | - |
Acquisition of unlisted securities | 4.4 | - | - |
Cash flow on disposal of subsidiary shares and business operations, net of disposed cash | 6.1 | - | |
Cash flow on disposal of shares in associated companies | 4.3 | ||
Cash flow on disposal of intangible assets and property, plant and equipment | 4.1 | ||
Capital expenditure | 2.1, 4.1 | - | - |
Investment in biological assets | 4.2 | - | - |
Proceeds from/payment of non-current receivables, net | - | ||
Net cash used in investing activities | - | - | |
Year ended 31 December | |||
EUR million | Note | 2023 | 2022 |
Cash flow from financing activities | |||
Proceeds from issue of new long-term debt | 5.3 | ||
Repayment of long-term debt and lease liabilities | 5.3 | - | - |
Change in short-term interest-bearing liabilities | 5.3 | ||
Dividends paid | - | - | |
Purchase of own shares | - | - | |
Net cash used in financing activities | - | ||
Net change in cash and cash equivalents | |||
Translation adjustment | |||
Net cash and cash equivalents at beginning of year | |||
Net cash and cash equivalents at year end | |||
Cash and cash equivalents at year end2 | |||
Bank overdrafts at year end | |||
Net cash and cash equivalents at year end | |||
1 CTA = Cumulative Translation Adjustment 2 Cash and cash equivalents comprise cash-in-hand, deposits held at call with banks and other liquid investments with original maturity of less than three months. Bank overdrafts are included in current liabilities. The accompanying Notes are an integral part of these consolidated financial statements. |
Year ended 31 December | |||
EUR million | Note | 2023 | 2022 |
Change in net working capital consists of: | |||
Change in inventories | - | ||
Change in interest-free receivables: | |||
Current | - | ||
Non-current | - | - | |
Change in interest-free liabilities: | |||
Current | - | ||
Non-current | - | - | |
Change in net working capital, net of businesses acquired or sold | - | ||
Cash and cash equivalents consist of: | |||
Cash on hand and at banks | |||
Cash equivalents | |||
Cash and cash equivalents | |||
Non-cash investing activities | |||
Total capital expenditure excluding right-of-use assets | |||
Amounts paid | - | - | |
Non-cash part of additions to intangible assets and property, plant and equipment | |||
Cash flow on acquisitions of subsidiaries and business operations | |||
Purchase consideration on acquisitions, cash part | 6.1 | - | |
Cash and cash equivalents in acquired companies, net of bank overdraft | 6.1 | ||
Net cash flow on acquisition | - | ||
Cash flow on disposals of subsidiaries and business operations | |||
Cash part of the consideration | 6.1 | ||
Cash and cash equivalents in divested companies | 6.1 | - | - |
Net cash flow from disposal | - | ||
The accompanying Notes are an integral part of these consolidated financial statements. |
Fair value reserve | |||||||||||||
EUR million | Share capital | Share premium and reserve fund | Invested non- restricted equity fund | Treasury shares | Equity instruments through OCI | Cash flow hedges | Revaluation reserve | OCI of associated companies | CTA and net investment hedges and loans | Retained earnings | Attributable to owners of the parent | Non- controlling interests | Total |
Balance at 1 January 2022 | - | - | - | ||||||||||
Net result for the year | - | ||||||||||||
OCI before tax | - | ||||||||||||
Income tax relating to OCI | - | - | - | - | - | ||||||||
Total Comprehensive Income | - | - | |||||||||||
Dividend | - | - | - | ||||||||||
Acquisitions and disposals | |||||||||||||
Purchase of treasury shares | - | - | - | ||||||||||
Share-based payments | |||||||||||||
Balance at 31 December 2022 | - | - | |||||||||||
Net result for the year | - | - | - | - | |||||||||
OCI before tax | - | - | - | - | - | - | - | ||||||
Income tax relating to OCI | |||||||||||||
Total Comprehensive Income | - | - | - | - | - | - | - | - | |||||
Dividend | - | - | - | ||||||||||
Acquisitions and disposals | |||||||||||||
Purchase of treasury shares | - | - | - | ||||||||||
Share-based payments | - | - | - | ||||||||||
Balance at 31 December 2023 | - | - | |||||||||||
CTA = Cumulative Translation Adjustment, NCI = Non-controlling Interests, OCI = Other Comprehensive Income |
EUR million | Packaging Materials | Packaging Solutions | Biomaterials | Wood Products | Forest | Other | Eliminations | Group |
External sales | 4,362 | 1,066 | 1,363 | 1,453 | 989 | 162 | 0 | 9,396 |
Internal sales | 195 | 11 | 223 | 127 | 1,501 | 801 | -2,859 | 0 |
Sales total | 4,557 | 1,077 | 1,587 | 1,580 | 2,490 | 964 | -2,859 | 9,396 |
Product sales | 9,317 | |||||||
Service sales | 79 | |||||||
Sales total | 9,396 | |||||||
Operating result | -642 | 17 | -81 | -86 | 461 | -41 | 49 | -322 |
Net financial expense | -173 | |||||||
Income taxes | 64 | |||||||
Result for the period | -431 | |||||||
Operative assets | 3,562 | 1,223 | 2,772 | 855 | 7,906 | 1,189 | -371 | 17,136 |
Tax receivables | 166 | |||||||
Interest-bearing receivables | 2,613 | |||||||
Assets held for sale | 839 | |||||||
Total assets | 20,754 | |||||||
Operative liabilities | 1,059 | 195 | 321 | 238 | 549 | 505 | -358 | 2,508 |
Tax liabilities | 1,478 | |||||||
Interest-bearing liabilities | 5,209 | |||||||
Liabilities related to assets held for sale | 671 | |||||||
Total liabilities | 9,865 | |||||||
Other items | ||||||||
Depreciations/impairments/impairment reversals | -805 | -74 | -297 | -67 | -21 | -38 | 0 | -1,303 |
Capital expenditures | 636 | 161 | 162 | 51 | 29 | 15 | 0 | 1,054 |
Operating capital1 | 3,243 | 1,028 | 2,451 | 617 | 7,358 | 684 | -13 | 15,368 |
Average personnel | 7,269 | 4,389 | 2,196 | 4,079 | 1,434 | 1,455 | 0 | 20,822 |
EUR million | Packaging Materials | Packaging Solutions | Biomaterials | Wood Products | Forest | Other | Eliminations | Group |
External sales | 5,257 | 704 | 1,798 | 2,058 | 848 | 1,014 | 0 | 11,680 |
Internal sales | 239 | 23 | 382 | 137 | 1,671 | 1,136 | -3,589 | 0 |
Sales total | 5,496 | 727 | 2,180 | 2,195 | 2,519 | 2,150 | -3,589 | 11,680 |
Product sales | 11,521 | |||||||
Service sales | 159 | |||||||
Sales total | 11,680 | |||||||
Operating result | 653 | -81 | 668 | 253 | 523 | 36 | -42 | 2,009 |
Net financial expense | -151 | |||||||
Income taxes | -322 | |||||||
Result for the period | 1,536 | |||||||
Operative assets | 4,792 | 351 | 3,095 | 998 | 7,481 | 1,924 | -440 | 18,201 |
Tax receivables | 85 | |||||||
Interest-bearing receivables | 2,122 | |||||||
Assets held for sale | 514 | |||||||
Total assets | 20,922 | |||||||
Operative liabilities | 1,265 | 146 | 299 | 280 | 518 | 574 | -377 | 2,704 |
Tax liabilities | 1,507 | |||||||
Interest-bearing liabilities | 3,972 | |||||||
Liabilities related to assets held for sale | 237 | |||||||
Total liabilities | 8,419 | |||||||
Other items | ||||||||
Depreciations/impairments/impairment reversals | -287 | -62 | -110 | -59 | -50 | -67 | 0 | -635 |
Capital expenditures | 363 | 36 | 121 | 87 | 35 | 59 | 0 | 701 |
Operating capital1 | 3,527 | 205 | 2,796 | 718 | 6,963 | 1,660 | -63 | 15,806 |
Average personnel | 7,113 | 3,865 | 2,135 | 4,445 | 1,412 | 2,822 | 0 | 21,790 |
External sales by destination | Non-current assets by country1 | Capital expenditure by country2 | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Austria | 347 | 450 | 134 | 128 | 15 | 16 |
Baltic States | 271 | 377 | 66 | 74 | 9 | 12 |
Czech Republic | 189 | 231 | 193 | 198 | 8 | 41 |
Finland | 664 | 759 | 2,872 | 2,729 | 587 | 311 |
France | 299 | 449 | 2 | 2 | 0 | 0 |
Germany | 862 | 1,208 | 34 | 53 | 9 | 10 |
Italy | 453 | 650 | 0 | 0 | 1 | 0 |
Netherlands | 597 | 317 | 797 | 9 | 131 | 7 |
Poland | 511 | 733 | 407 | 379 | 30 | 35 |
Sweden | 1,111 | 1,071 | 7,127 | 6,837 | 174 | 173 |
UK | 344 | 444 | 8 | 0 | 0 | 0 |
Other Europe | 901 | 1,245 | 126 | 135 | 12 | 16 |
Total Europe | 6,548 | 7,934 | 11,767 | 10,543 | 975 | 623 |
China (incl. Hong Kong) | 991 | 1,125 | 43 | 1,044 | 15 | 25 |
Japan | 242 | 417 | 0 | 0 | 0 | 0 |
Uruguay | 33 | 31 | 1,543 | 1,580 | 35 | 31 |
USA | 302 | 397 | 0 | 32 | 0 | 0 |
Other countries | 1,279 | 1,776 | 316 | 282 | 29 | 22 |
Total | 9,396 | 11,680 | 13,669 | 13,481 | 1,054 | 701 |
1 Non-current assets excluding assets held for sale, financial instruments and deferred tax assets. 2 Excluding biological asset capital expenditure |
EUR million | 2023 | 2022 |
Other operating income | ||
Emission rights allocated and disposal gains | 145 | 177 |
Sale of green certificates | 12 | 10 |
Gains on disposal of fixed assets | 44 | 4 |
Gains on disposal of Group companies and business operations | 52 | 18 |
Dividend and gain on sale of unlisted shares | 1 | 1 |
Insurance compensation | 8 | 10 |
CTA release | 0 | 5 |
Government grants | 40 | 16 |
Other1 | 76 | 85 |
Total | 378 | 326 |
EUR million | 2023 | 2022 |
Other operating expenses | ||
Lease expenses | 43 | 40 |
Credit losses, net of reversals | 9 | 13 |
Losses on disposal of fixed assets | 4 | 0 |
Losses on disposal of Group companies and business operations | 19 | 26 |
CTA release | 56 | 52 |
Provision changes in income statement | 94 | 31 |
Other1 | 414 | 431 |
Total | 638 | 594 |
1 Including expenses related to, among others, consultancy and other services, IT and telecommunications, properties and administration, audit, training, travelling, insurance, penalties, and currency translation differences on operative payables. | ||
Materials and services include | 2023 | 2022 |
Emissions rights to be delivered | 82 | 112 |
EUR million | 2023 | 2022 |
Audit fees | 4 | 4 |
Audit-related fees | 0 | 0 |
Tax fees | 0 | 0 |
Other fees | 0 | 0 |
Total | 5 | 4 |
EUR million | 2023 | 2022 |
Depreciation and amortisation | ||
Intangible assets | 41 | 24 |
Buildings and structures | 76 | 81 |
Plant and equipment | 349 | 371 |
Right-of-use assets | 59 | 50 |
Other tangible assets | 8 | 8 |
Total | 533 | 533 |
Impairment | ||
Goodwill | 85 | 11 |
Intangible assets | 24 | 1 |
Buildings and structures | 134 | 25 |
Plant and equipment | 494 | 75 |
Right-of-use assets | 33 | 0 |
Other tangible assets | 6 | 2 |
Total | 776 | 114 |
Reversal of impairment | ||
Plant and equipment | -6 | -7 |
Total | -6 | -7 |
Disposal gains/losses | ||
Gain on sale of assets | 0 | -10 |
Loss on sale of assets | 0 | 4 |
Total | 0 | -5 |
Depreciation, amortisation and impairment charges | 1,303 | 635 |
2023 | 2022 | |||
EUR million | Goodwill at year end | Pre-tax discount rate | Goodwill at year end1 | Pre-tax discount rate |
Packaging Solutions - Western Europe | 277 | 9.3% | 0 | — |
Wood Products - Southern Europe | 110 | 11.8% | 111 | 9.9% |
Biomaterials - Nordic Mills | 0 | 10.1% | 45 | 8.2% |
Other CGUs | 119 | 88 | ||
Total | 505 | 244 | ||
1 Goodwill excluding assets held for sale |
EUR million | 2023 | 2022 |
Packaging Materials | 530 | 0 |
Packaging Solutions | 5 | 36 |
Biomaterials | 190 | 0 |
Wood Products | 20 | 10 |
Forest | 1 | 31 |
Other | 23 | 28 |
Total (impairment +) / (Impairment reversal -) | 770 | 107 |
EUR million | 2023 | 2022 |
Net financial expense in the income statement | ||
Financial income | 91 | 40 |
Financial expense | -264 | -191 |
Total | -173 | -151 |
Represented by | ||
Interest expense | ||
Interest expense from borrowings measured at amortised cost | -167 | -96 |
Interest component of the effective hedges under cash flow hedge | 9 | -12 |
Interest expense on leases | -23 | -17 |
Interest capitalised | 7 | 0 |
Interest income on loans and receivables measured at amortised cost | 61 | 20 |
Net interest expense | -113 | -105 |
Foreign exchange gains and losses | ||
Currency derivatives | -12 | 8 |
Borrowings, cash equivalents, lease liabilities and other | -10 | -10 |
Net foreign exchange gains and losses | -22 | -1 |
Other financial income | 6 | 2 |
Other financial expense | ||
Financial fees | -28 | -8 |
Fair valuation losses | 0 | -4 |
Impairments of interest-bearing assets | -11 | -30 |
Net interest on net defined benefit liabilities | -5 | -3 |
Net other financial expense | -38 | -45 |
Total | -173 | -151 |
Gains and losses on derivative financial instruments are shown in note 5.4 Derivatives. |
EUR million | 2023 | 2022 |
Current tax | -54 | -196 |
Deferred tax | 119 | -126 |
Total income tax | 64 | -322 |
EUR million | 2023 | 2022 |
Profit before tax | -495 | 1,858 |
Tax at statutory rates applicable to profits in the country concerned1 | 121 | -337 |
Non-deductible expenses and tax exempt income2 | -10 | -15 |
Valuation of deferred tax assets | -60 | 15 |
Taxes from prior years | -3 | 2 |
Changes in tax rates and tax laws | -1 | 0 |
Results from associated companies | 27 | 44 |
Other | -10 | -31 |
Total income taxes | 64 | -322 |
Effective tax rate | 13.0% | 17.3% |
Statutory tax rate (blended) | 24.5% | 18.2% |
1 Includes a EUR 22 million impact from countries with tax holidays and tax benefits in 2023 and a EUR 55 million impact from tax holidays and other tax benefits in 2022. 2 The tax value of non-deductible expenses of EUR 12 million has been netted against tax exempt income of 3 EUR million in 2023, and tax value of non-deductible expenses of EUR 16 million has been netted against tax exempt income of EUR 1 million in 2022. |
EUR million | Value at 1 Jan 2023 | Income statement | OCI | Acquisitions / disposals | Translation difference | Value at 31 Dec 2023 |
Forest assets | -1,267 | -54 | 9 | 0 | -4 | -1,315 |
Fixed assets | -123 | 58 | 0 | -60 | -3 | -128 |
Financial instruments | -10 | -2 | -1 | 0 | 0 | -12 |
Untaxed reserves | -85 | 77 | 0 | 0 | 2 | -6 |
Pensions and provisions | 26 | -3 | 9 | 0 | 1 | 34 |
Tax losses and tax credits carried forward | 74 | 40 | 0 | 0 | -2 | 112 |
Other deferred taxes | 15 | 2 | 0 | -2 | 1 | 17 |
Total | -1,370 | 119 | 18 | -62 | -4 | -1,299 |
Equity hedges and net investment loans (CTA) | 0 | 0 | ||||
Cash flow hedging | 0 | 0 | ||||
Change in deferred tax | 119 | 18 | -62 | -4 | ||
Assets1 | 74 | 134 | ||||
Liabilities1 | -1,443 | -1,433 | ||||
1 Deferred tax assets and liabilities have been offset in accordance with IAS 12. OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment |
EUR million | Value at 1 Jan 2022 | Income statement | OCI | Acquisitions / disposals1 | Translation difference | Value at 31 Dec 2022 |
Forest assets | -1,268 | -43 | -53 | 0 | 97 | -1,267 |
Fixed assets | -103 | -44 | 0 | 17 | 7 | -123 |
Financial instruments | 1 | -3 | -8 | 0 | 0 | -10 |
Untaxed reserves | -80 | -16 | 0 | 4 | 7 | -85 |
Pensions and provisions | 58 | -1 | -25 | -4 | -2 | 26 |
Tax losses and tax credits carried forward | 107 | -34 | 0 | 0 | 1 | 74 |
Other deferred taxes | -2 | 19 | 0 | -2 | 0 | 15 |
Total | -1,287 | -122 | -86 | 15 | 110 | -1,370 |
Equity hedges and net investment loans (CTA) | -3 | 3 | ||||
Change in deferred tax | -125 | -83 | 15 | 110 | ||
Assets2 | 143 | 74 | ||||
Liabilities2 | -1,430 | -1,443 | ||||
Tax losses carried forward | Recognised tax values | Unrecognised tax values | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Expiry within five years | 88 | 359 | 9 | 5 | 13 | 72 |
Expiry after five years | 326 | 100 | 60 | 9 | 6 | 14 |
No expiry | 1,213 | 1,173 | 42 | 58 | 219 | 198 |
Total | 1,626 | 1,633 | 111 | 73 | 237 | 283 |
2023 | 2022 | |
Net result for the period attributable to the owners of the parent, EUR million | -357 | 1,550 |
Weighted average number of A and R shares | 788,619,987 | 788,619,987 |
Weighted average number of share awards | 1,094,121 | 771,150 |
Weighted diluted number of shares | 789,714,108 | 789,391,137 |
Basic earnings per share, EUR | -0.45 | 1.97 |
Diluted earnings per share, EUR | -0.45 | 1.96 |
EUR million | 2023 | 2022 |
Wages and salaries | 962 | 996 |
Pension expenses | 147 | 152 |
Share-based remuneration | 4 | 8 |
Other statutory employer costs | 139 | 140 |
Other voluntary costs | 23 | 20 |
Total | 1,275 | 1,315 |
EUR million | 2023 | 2022 |
Defined benefit plans | 7 | 5 |
Defined contribution plans | 140 | 146 |
Total | 147 | 152 |
2023 | 2022 | ||||
EUR thousand (before taxes) | Cash | Value of shares1 | Total4 | Total | Committee memberships |
Board members at 31 December 2023 | |||||
Kari Jordan, Chair | 135 | 85 | 220 | 86 | |
Håkan Buskhe, Vice Chair | 77 | 48 | 125 | 122 | People and Culture, Nomination2,3 |
Elisabeth Fleuriot | 64 | 33 | 97 | 94 | Financial and Audit |
Helena Hedblom | 55 | 33 | 88 | 86 | Sustainability and Ethics |
Astrid Hermann | 64 | 33 | 97 | — | Financial and Audit |
Christiane Kuehne | 60 | 33 | 93 | 90 | Sustainability and Ethics |
Antti Mäkinen | 55 | 33 | 88 | 214 | People and Culture |
Richard Nilsson | 71 | 33 | 104 | 101 | Financial and Audit |
Former Board members | |||||
Hock Goh (until 16 March, 2023) | — | — | — | 94 | Financial and Audit |
Hans Sohlström (until 18 September, 2023) | 55 | 33 | 88 | 86 | Sustainability and Ethics |
Total remuneration as Directors1 | 636 | 364 | 1,000 | 972 | |
140% of the Board remuneration, excluding Committee remuneration, in 2023 was paid in Stora Enso R shares purchased from the market and distributed as follows: to Chair 7,326 R shares, Vice Chair 4,136 R shares, and members 2,839 R shares each. The Company has no formal policy requirements for the Board members to retain shares received as remuneration. 2 Stora Enso’s Shareholders’ Nomination Board has been appointed by the AGM in 2016 to exist until otherwise decided. The Shareholders’ Nomination Board according to its Charter as approved by the AGM comprises of four members: the Chair and Vice Chair of the Board of Directors, as well as two members appointed by the two largest shareholders (one each) as of 31 August each year. No separate remuneration is paid to members of the Nomination Board. 3 Marcus Wallenberg, appointed by FAM AB, is Chair of the Nomination Board. Jouko Karvinen is the member of the Shareholders’ Nomination Board appointed by Solidium Oy. Kari Jordan and Håkan Buskhe were appointed as members of the Shareholders’ Nomination Board in their roles as Chair and Vice Chair of the Board of Directors. 4 The Company additionally pays the transfer tax for share purchases for each member, in line with AGM decision, which amount is considered also taxable income for each member. |
Shares held (direct and indirect ownership) | ||
A | R | |
Board members at 31 December 2023 | ||
Kari Jordan, Chair | 9,012 | |
Håkan Buskhe, Vice Chair | 12,069 | |
Elisabeth Fleuriot | 32,868 | |
Helena Hedblom | 6,356 | |
Astrid Hermann | 2,839 | |
Christiane Kuehne | 17,429 | |
Antti Mäkinen | 19,415 | |
Richard Nilsson1 | 127 | 30,207 |
Total shares held | 127 | 130,195 |
1 Spouse holds 127 of A shares and 236 of R shares |
Shares held when Board membership ended (direct and indirect) | Effective date of Board membership ending | |
Hock Goh | 34,782 | 16 March 2023 |
Hans Sohlström1 | 16,535 | 18 September 2023 |
1 Spouse holds 179 of the shares |
2023 | 2022 | ||||||
EUR thousand | CEO2 | Former CEO2 | Others3,6 | GLT Total | CEO | Others | GLT Total |
Remuneration1,5 | |||||||
Annual salary | 290 | 669 | 3,656 | 4,615 | 953 | 4,802 | 5,755 |
Local housing (actual costs) | — | — | 3 | 3 | 0 | 2 | 2 |
Other benefits | — | 26 | 263 | 289 | 32 | 272 | 304 |
Termination benefits | — | 933 | 300 | 1,233 | 0 | 0 | 0 |
Short Term Incentive programme4 | — | 157 | 1,024 | 1,181 | 845 | 2,167 | 3,012 |
Long Term Incentive programme4 | — | 912 | 1,652 | 2,564 | 987 | 2,848 | 3,835 |
290 | 2,697 | 6,898 | 9,885 | 2,817 | 10,091 | 12,908 | |
Pension costs | |||||||
Mandatory plans | 48 | 428 | 920 | 1,396 | 477 | 1,154 | 1,631 |
Stora Enso voluntary plans | — | — | 730 | 730 | 0 | 933 | 933 |
48 | 428 | 1,650 | 2,126 | 477 | 2,087 | 2,564 | |
Total compensation | 338 | 3,125 | 8,548 | 12,011 | 3,294 | 12,178 | 15,472 |
1 The Finnish Corporate Governance code requires companies to report remuneration that is paid or due, and due to this the figures presented in the above table do not directly reconcile with the amounts recognised as personnel expenses in the Income statement as presented in the below table Group Leadership Team remuneration in Income statement. 2 CEO remuneration consists of remuneration delivered to Hans Sohlström as of 18 September 2023 and Annica Bresky until 18 September 2023. 3 Includes earnings related to René Hansen until 4 May 2023, Minna Björkman until 30 September 2023 and David Ekberg until 30 November 2023. And Micaela Thorström as of 1 April 2023 and Ad Smit as of 1 December 2023. 4 Related to amounts due at year end, which will be paid in 2024. LTI value is calculated using the 29 December 2023 closing price of EUR 12.53. The final value of the vested shares will depend on the share price on vesting date 1 March 2024. 5 Remuneration for executives is disclosed only for the period during which they were GLT members. 6 Remuneration of GLT members decreased in 2023 compared to 2022 mainly due to the performance outcome of variable pay programmes. The average number of GLT members during 2023 was 10.40. |
2023 | 2022 | ||||||
EUR thousand | CEO | Former CEO | Others | GLT Total | CEO | Others | GLT Total |
Salaries and other short-term employee benefits | 290 | 852 | 4,946 | 6,088 | 1,830 | 7,243 | 9,073 |
Long Term Incentive programme1 | 137 | 432 | 1,245 | 1,814 | 714 | 1,581 | 2,295 |
Post-employment benefits | 48 | 428 | 1,650 | 2,126 | 477 | 2,087 | 2,564 |
Total recognised in Income statement | 475 | 1,712 | 7,841 | 10,028 | 3,021 | 10,911 | 13,932 |
1 The costs of long-term incentive (LTI) programmes are recognised as costs over the three year vesting period based on the share price at grant date and the estimate of equity instruments that will eventually vest. |
Executives in office at the year end | R shares held1 | Shares due 20242 | Performance share opportunity 2025–20265 | Restricted share opportunity 2024–20255 |
Hans Sohlström 6 | 100,799 | — | 169,420 | — |
Seppo Parvi | 63,162 | 16,457 | 61,160 | — |
Tobias Bäärnman | 4,196 | 9,892 | 25,980 | — |
Johanna Hagelberg | 35,645 | 12,047 | 43,520 | — |
Hannu Kasurinen | 52,736 | 19,961 | 57,810 | — |
Katariina Kravi | 10,383 | 11,945 | 33,600 | — |
Per Lyrvall 3 | 84,143 | 15,074 | 47,840 | — |
Annette Stube | 9,054 | 11,218 | 31,570 | — |
Ad Smit | — | — | 8,168 | 22,722 |
Micaela Thorström | — | 1,677 | 12,858 | 302 |
Lars Völkel | 16,477 | 17,309 | 51,280 | — |
Total, serving officers4 | 376,595 | 115,580 | 543,206 | 23,024 |
1 Direct and indirect ownership. None of the GLT members holds A shares. 2 Shares due to GLT member are gross of taxes for the LTI programmes with performance periods that ended in 2023 and are due to be paid 2024. The Performance Share programme resulted in a 89% performance outcome due to be paid in 2024 partly in shares and cash. Some GLT members hold restricted shares in the Restricted Shares programme that ended in 2023 and those shares are due to be paid 2024. 3 Spouse holds 1,257 of the shares. 4 The Company recommends and expects GLT members to hold Stora Enso shares at a value corresponding to at least one annual base salary. Stora Enso shares received as remuneration are therefore recommended not to be sold until this level has been reached. 5 Potential shares to GLT members are gross of taxes for LTI programmes with performance periods that end in 2024–2025 and are due to be paid 2025–2026. 6 Spouse holds 179 of the shares. |
The following Executive Officers also served in 2023 | R shares held when GLT membership ended | Performance Share Awards when GLT membership ended | Restricted Share Awards when GLT membership ended | Effective date of GLT membership ending |
Annica Bresky | 52,594 | 79,197 | 17 September 2023 | |
Minna Björkman | 2,344 | 16,508 | 1,122 | 30 September 2023 |
David Ekberg 1 | 8,830 | 37,820 | 30 November 2023 | |
René Hansen 1 | 1,462 | 27,100 | 3,400 | 4 May 2023 |
1 Unvested shares are forfeited at end of employment |
Defined benefit obligation | Fair value of plan assets | Net defined benefit obligation / (asset) | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
At 1 January | 736 | 1,108 | -577 | -762 | 159 | 347 |
Current service cost | 7 | 12 | 0 | 0 | 7 | 12 |
Past service cost | 0 | -6 | 0 | 0 | 0 | -6 |
Settlements | 0 | -7 | 0 | 7 | 0 | 0 |
Interest expense (+) income (-) | 27 | 13 | -22 | -10 | 5 | 3 |
Total included in income statement | 34 | 11 | -22 | -3 | 12 | 9 |
Actuarial changes in demographic assumptions | 1 | -13 | 0 | 0 | 1 | -13 |
Actuarial changes in financial assumptions | 31 | -306 | 0 | 0 | 31 | -306 |
Actuarial changes from experience adjustments | 19 | 63 | 0 | 0 | 19 | 63 |
Return on plan assets1 | 0 | 0 | -1 | 105 | -1 | 105 |
Asset ceiling impact1 | 0 | 0 | 2 | 5 | 2 | 5 |
Total remeasurement gains (-) / losses (+) included in OCI | 52 | -256 | 0 | 109 | 52 | -147 |
Benefit payments | -56 | -54 | 45 | 41 | -12 | -13 |
Employer contributions and refunds | 0 | 0 | -20 | 4 | -20 | 4 |
Translation difference | 3 | -38 | -3 | 33 | 0 | -5 |
Disposals and classification as held for sale | 6 | -35 | -1 | 0 | 5 | -35 |
At 31 December | 775 | 736 | -578 | -577 | 197 | 159 |
Finland | Germany | Sweden | ||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
Discount rate % | 3.1 | 3.6 | 3.3 | 3.6 | 3.1 | 4.0 |
Future salary increase % | 3.0 | 3.0 | 2.5 | 2.5 | 2.9 | 2.9 |
Future pension increase % | 2.2 | 2.2 | 2.0 | 2.0 | 2.0 | 2.0 |
Duration of pension plans | 8.0 | 8.0 | 8.8 | 10.2 | 12.7 | 13.1 |
Impact on defined benefit obligation | |||
Change in assumption | Increase in assumption | Decrease in assumption | |
Discount rate | 0.50% | Decrease by 4.9% | Increase by 5.5% |
Salary growth rate | 0.50% | Increase by 1.1% | Decrease by 1.0% |
Pension growth rate | 0.50% | Increase by 4.1% | Decrease by 3.7% |
Life expectancy | 1 year | Increase by 3.6% | Decrease by 3.5% |
EUR million | Finland | Germany | Sweden | Other | Total |
Present value of funded obligations | 167 | 5 | 277 | 151 | 600 |
Present value of unfunded obligations | 0 | 131 | 20 | 23 | 174 |
Defined benefit obligations (DBO) | 167 | 136 | 297 | 174 | 775 |
Fair value of plan assets | -160 | -5 | -271 | -142 | -578 |
Net obligation in the balance sheet | 7 | 131 | 26 | 32 | 197 |
Represented by | |||||
Defined benefit pension plans | 7 | 131 | 26 | 9 | 174 |
Other post-employment benefits | 0 | 0 | 0 | 23 | 23 |
Net obligation in the balance sheet | 7 | 131 | 26 | 32 | 197 |
EUR million | Finland | Germany | Sweden | Other | Total |
Present value of funded obligations | 172 | 3 | 226 | 163 | 563 |
Present value of unfunded obligations | 0 | 134 | 15 | 24 | 173 |
Defined benefit obligations (DBO) | 172 | 137 | 241 | 187 | 736 |
Fair value of plan assets | -157 | -4 | -266 | -150 | -577 |
Net obligation in the balance sheet | 15 | 134 | -26 | 36 | 159 |
Represented by | |||||
Defined benefit pension plans | 15 | 134 | -26 | 13 | 136 |
Other post-employment benefits | 0 | 0 | 0 | 23 | 23 |
Net obligation in the balance sheet | 15 | 134 | -26 | 36 | 159 |
2023 | 2022 | |||||||
EUR million | Quoted | Unquoted | Total | % of total | Quoted | Unquoted | Total | % of total |
Equity | 89 | 7 | 96 | 17% | 88 | 12 | 101 | 17% |
Debt | 41 | 51 | 92 | 16% | 46 | 44 | 90 | 16% |
Property | 0 | 62 | 62 | 11% | 0 | 55 | 55 | 9% |
Cash | 5 | 0 | 5 | 1% | 10 | 0 | 10 | 2% |
Assets held by insurance companies | 0 | 228 | 228 | 39% | 0 | 226 | 226 | 39% |
Others | 7 | 89 | 96 | 17% | 0 | 96 | 96 | 17% |
Total pension fund assets | 142 | 436 | 578 | 100% | 144 | 433 | 577 | 100% |
Plan assets do not include any real estate or other assets occupied by the group or the Company's own financial instruments. |
Outstanding restricted and performance share awards at year end | ||||
Number of shares | 2024 | 2025 | 2026 | Total |
2021 programme | 649,329 | 649,329 | ||
2022 programme | 719,101 | 719,101 | ||
2023 programme | 1,060,720 | 1,060,720 | ||
Total | 649,329 | 719,101 | 1,060,720 | 2,429,150 |
Asset class | Depreciation years |
Buildings, industrial | 10-50 |
Buildings, office & residential | 20-50 |
Groundwood mills | 15-20 |
Hydroelectric power | 40 |
Paper, board and pulp mills, main machines | 20-30 |
Heavy machinery | 10-20 |
Converting factories | 10-15 |
Sawmills | 10-15 |
Computers | 3-5 |
Vehicles | 5 |
Office equipment | 3-5 |
Railway, harbours | 20-25 |
Forest roads | 10-15 |
Roads, fields, bridges | 15-20 |
EUR million | Customer relationships and trademarks | Other intangible assets | Assets in progress | Goodwill | Total | |
Acquisition cost | ||||||
At 1 January 2022 | 226 | 0 | 103 | 7 | 532 | 867 |
Translation difference | 0 | 0 | -1 | 0 | -2 | -4 |
Reclassifications | 5 | 0 | 2 | -4 | 0 | 3 |
Additions | 3 | 0 | 2 | 16 | 0 | 21 |
Disposals1 | -11 | 0 | -6 | 0 | -28 | -46 |
At 31 December 2022 | 222 | 0 | 100 | 18 | 502 | 842 |
Translation difference | -1 | 0 | -3 | 0 | -3 | -7 |
Reclassifications | 5 | 0 | 0 | 0 | 0 | 5 |
Additions | 15 | 206 | 6 | 18 | 349 | 594 |
Disposals and classification as held for sale1 | -13 | 0 | 77 | 0 | 0 | 64 |
At 31 December 2023 | 229 | 206 | 179 | 36 | 848 | 1,498 |
Accumulated amortisation and impairment | ||||||
At 1 January 2022 | 178 | 0 | 34 | 0 | 250 | 462 |
Translation difference | 0 | 0 | 0 | 0 | -3 | -3 |
Disposals1 | -11 | 0 | -6 | 0 | 0 | -17 |
Amortisation | 17 | 0 | 8 | 0 | 0 | 24 |
Impairment | 1 | 0 | 0 | 0 | 11 | 12 |
At 31 December 2022 | 185 | 0 | 35 | 0 | 258 | 478 |
Translation difference | -1 | 0 | -2 | 0 | -1 | -3 |
Disposals and classification as held for sale1 | -9 | 0 | 93 | 0 | 0 | 85 |
Amortisation | 17 | 16 | 8 | 0 | 0 | 41 |
Impairment | 6 | 0 | 14 | 3 | 85 | 109 |
At 31 December 2023 | 198 | 16 | 149 | 3 | 343 | 709 |
Net Book Value at 31 December 2023 | 31 | 190 | 30 | 32 | 505 | 789 |
Net Book Value at 31 December 2022 | 38 | 0 | 65 | 18 | 244 | 364 |
1 Company disposals are included in Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. |
EUR million | Land and water | Buildings and structures | Plant and equipment | Other tangible assets | Assets in progress | Total |
Acquisition cost | ||||||
At 1 January 2022 | 117 | 3,355 | 13,421 | 448 | 394 | 17,735 |
Translation difference | -1 | -12 | -266 | -11 | -10 | -300 |
Reclassifications | 0 | 57 | 207 | 10 | -277 | -3 |
Reclassifications to biological assets | 0 | -2 | -1 | 0 | 0 | -3 |
Additions | 6 | 33 | 217 | 4 | 373 | 634 |
Disposals1 | -19 | -390 | -2,668 | -58 | -27 | -3,162 |
At 31 December 2022 | 103 | 3,041 | 10,909 | 393 | 454 | 14,900 |
Translation difference | 1 | -22 | -17 | -2 | 7 | -32 |
Reclassifications | 0 | 25 | 260 | 8 | -298 | -5 |
Reclassifications to biological assets | 0 | -2 | -1 | 0 | 0 | -3 |
Additions | 5 | 77 | 434 | 14 | 583 | 1,113 |
Disposals and classification as held for sale1 | -1 | -286 | -956 | -10 | -6 | -1,259 |
At 31 December 2023 | 109 | 2,833 | 10,629 | 404 | 739 | 14,714 |
Accumulated depreciation and impairment | ||||||
At 1 January 2022 | 3 | 2,113 | 10,164 | 380 | 14 | 12,674 |
Translation difference | 0 | -30 | -262 | -9 | 0 | -302 |
Disposals1 | -1 | -378 | -2,458 | -49 | 0 | -2,886 |
Depreciation | 0 | 78 | 371 | 10 | 1 | 460 |
Impairments and reversals | 0 | 21 | 68 | 4 | 2 | 95 |
At 31 December 2022 | 2 | 1,804 | 7,882 | 336 | 16 | 10,040 |
Translation difference | 0 | -4 | 7 | -1 | 0 | 1 |
Disposals and classification as held for sale1 | 0 | -180 | -742 | -9 | 0 | -931 |
Depreciation | 0 | 74 | 349 | 10 | 0 | 433 |
Impairments and reversals | 0 | 133 | 488 | 5 | 1 | 628 |
At 31 December 2023 | 2 | 1,827 | 7,984 | 340 | 17 | 10,170 |
Net Book Value at 31 December 2023 | 107 | 1,006 | 2,644 | 64 | 722 | 4,544 |
Net Book Value at 31 December 2022 | 101 | 1,237 | 3,027 | 57 | 437 | 4,860 |
1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. |
EUR million | Land and water | Forest land | Buildings and structures | Plant and equipment and other | Total |
Acquisition cost | |||||
At 1 January 2022 | 107 | 253 | 104 | 127 | 591 |
Translation difference | -2 | -2 | -3 | -1 | -7 |
Reclassifications to biological assets | 0 | -17 | 0 | 0 | -17 |
Additions | 1 | 6 | 20 | 18 | 45 |
Disposals1 | -2 | 0 | -23 | -36 | -62 |
Other changes | 1 | 2 | 0 | 4 | 6 |
At 31 December 2022 | 105 | 243 | 96 | 113 | 556 |
Translation difference | -5 | -14 | -1 | 0 | -19 |
Reclassifications to biological assets | 0 | -16 | 0 | 0 | -16 |
Additions | 0 | 5 | 188 | 14 | 207 |
Disposals and classification as held for sale1 | -75 | -181 | -26 | -21 | -303 |
Other changes | 1 | 15 | 7 | 3 | 26 |
At 31 December 2023 | 25 | 52 | 264 | 109 | 451 |
Accumulated depreciation and impairment | |||||
At 1 January 2022 | 8 | 18 | 55 | 69 | 150 |
Translation difference | 0 | -1 | -2 | -2 | -4 |
Disposals1 | -1 | 0 | -23 | -34 | -58 |
Depreciation | 3 | 5 | 19 | 23 | 50 |
Impairment | 0 | 0 | 1 | 0 | 0 |
At 31 December 2022 | 10 | 22 | 49 | 56 | 138 |
Translation difference | -1 | -1 | 0 | 0 | -3 |
Disposals and classification as held for sale1 | -36 | -24 | -20 | -20 | -100 |
Depreciation | 3 | 3 | 32 | 21 | 59 |
Impairment | 28 | 0 | 3 | 2 | 33 |
At 31 December 2023 | 4 | 0 | 64 | 60 | 128 |
Net Book Value at 31 December 2023 | 21 | 52 | 201 | 49 | 323 |
Net Book Value at 31 December 2022 | 95 | 221 | 47 | 57 | 418 |
1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. |
Biological assets | Forest land2 | Forest assets total | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Subsidiaries and joint operations | ||||||
Value at 1 January | 4,531 | 4,547 | 2,315 | 2,201 | 6,846 | 6,747 |
Translation differences | 2 | -305 | 0 | -145 | 2 | -449 |
Unrealized change in fair value 1 | 385 | 336 | -49 | 259 | 335 | 596 |
Additions | 71 | 77 | 1 | 2 | 72 | 78 |
Disposals and classification as held for sale3 | -181 | -2 | 2 | -2 | -178 | -4 |
Change due to harvesting1 | -168 | -141 | 0 | 0 | -168 | -141 |
Other operative changes1 | -7 | -1 | 0 | 0 | -7 | -1 |
Reclassification from PPE | 20 | 20 | 0 | 0 | 20 | 20 |
Value at 31 December | 4,652 | 4,531 | 2,269 | 2,315 | 6,921 | 6,846 |
Classified as held for sale | 184 | 0 | 0 | 0 | 184 | 0 |
Associated company | ||||||
Tornator Oyj (41%) | 1,287 | 1,122 | 130 | 149 | 1,417 | 1,271 |
Value at 31 December | 1,287 | 1,122 | 130 | 149 | 1,417 | 1,271 |
Total | 6,123 | 5,653 | 2,399 | 2,464 | 8,522 | 8,117 |
1 For biological assets, changes are presented in the profit and loss. For forest land, changes in fair value are recognised directly in equity. 2 Not including leased forest land. 3 Assets held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. |
As at 31 December 2023 | ||||||||
Swedish forests | Guangxi 3 | Veracel (50%) | MdP (50%) | Tornato r (41%) | Total | |||
Total area | Thousand ha | 1,383 | 70 | 116 | 138 | 310 | 2,016 | |
- of which owned | Thousand ha | 1,383 | — | 104 | 95 | 310 | 1,892 | |
- of which leased | Thousand ha | — | 70 | 12 | 43 | — | 125 | |
Productive area | Thousand ha | 1,139 | 61 | 49 | 92 | 285 | 1,627 | |
Total area | Standing stock | million m3 fo.1 | 151.9 | 4.3 | 6.1 | 15.0 | 33.7 | 210.8 |
Productive area | Standing stock | million m3 fo.1 | 149.7 | 4.3 | 6.1 | 15.0 | 33.4 | 208.4 |
Estimated growth | million m3 fo.1 | 5.8 | 1.3 | 2.2 | 2.0 | 1.5 | 12.8 | |
Harvesting | million m3 fo.1 | -4.2 | -1.2 | -1.3 | -2.3 | -1.4 | -10.5 | |
Other changes | million m3 fo.1 | -2.5 | 0.0 | 0.0 | -0.3 | 0.6 | -2.1 | |
Harvesting | million m3 u.b.2 | -3.5 | -1.0 | -1.1 | -1.9 | -1.1 | -8.6 | |
Biological assets | EUR million | 4,239 | 184 | 124 | 288 | 1,287 | 6,123 | |
Biological assets | Productive area | EUR/ha | 3,723 | 3,010 | 2,531 | 3,121 | 4,509 | 3,764 |
Forest land | EUR million | 2,072 | — | 30 | 167 | 130 | 2,399 | |
Total forest assets | EUR million | 6,312 | 184 | 154 | 455 | 1,417 | 8,522 | |
Leased forest land | EUR million | — | 157 | 4 | 48 | — | 209 | |
1Forest cubic meters 2Solid under bark (sub) cubic meters 3 Classified as held for sale |
As at 31 December 2022 | ||||||||
Swedish forests | Guangxi | Veracel (50%) | MdP (50%) | Tornator (41%) | Total | |||
Total area | Thousand ha | 1,389 | 73 | 113 | 138 | 301 | 2,014 | |
- of which owned | Thousand ha | 1,389 | — | 105 | 95 | 300 | 1,890 | |
- of which leased | Thousand ha | — | 73 | 8 | 43 | — | 124 | |
Productive area | Thousand ha | 1,142 | 64 | 47 | 92 | 277 | 1,622 | |
Total area | Standing stock | million m3 fo.1 | 152.7 | 4.2 | 5.2 | 15.5 | 33.2 | 210.8 |
Productive area | Standing stock | million m3 fo.1 | 150.5 | 4.1 | 5.2 | 15.5 | 32.8 | 208.1 |
Estimated growth | million m3 fo.1 | 5.8 | 1.3 | 1.8 | 3.2 | 1.5 | 13.6 | |
Harvesting | million m3 fo.1 | -4.6 | -1.2 | -1.7 | -1.8 | -1.3 | -10.7 | |
Other changes | million m3 fo.1 | -1.1 | -0.8 | 0.0 | 0.2 | -0.1 | -1.8 | |
Harvesting | million m3 u.b.2 | -3.8 | -1.0 | -1.4 | -1.5 | -1.2 | -8.9 | |
Biological assets | EUR million | 3,963 | 196 | 103 | 269 | 1,122 | 5,653 | |
Biological assets | Productive area | EUR/ha | 3,471 | 3,062 | 2,162 | 2,922 | 4,054 | 3,485 |
Forest land | EUR million | 2,113 | — | 29 | 173 | 149 | 2,464 | |
Total forest assets | EUR million | 6,076 | 196 | 131 | 441 | 1,271 | 8,117 | |
Leased forest land | EUR million | — | 166 | 3 | 52 | — | 221 | |
1Forest cubic meters 2Solid under bark (sub) cubic meters |
2023 | North | Middle | South | Total | |
Productive area | Thousand ha | 186 | 953 | 0 | 1,139 |
Percentage of total | % | 16% | 84% | 0% | 100% |
Standing stock | million m3 fo. | 16.9 | 132.8 | 0.0 | 149.7 |
Percentage of total | % | 11% | 89% | 0% | 100% |
2022 | North | Middle | South | Total | |
Productive area | Thousand ha | 190 | 951 | 0 | 1,142 |
Percentage of total | % | 17% | 83% | 0% | 100% |
Standing stock | million m3 fo. | 17.5 | 133.0 | 0.0 | 150.5 |
Percentage of total | % | 12% | 88% | 0% | 100% |
EUR million | Wood market prices | Growth rate | Discount rate |
Guangxi | +/-26 | +/-1 | +/-3 |
Veracel | +/-11 | +/-11 | +/-2 |
Montes del Plata | +/-32 | +/-32 | +12/-11 |
Ownership interest % | EUR million | |||||
Company | Reportable segment | Domicile and principal place of operations | 2023 | 2022 | 2023 | 2022 |
Tornator Oyj | Forest | Finland | 41.00 | 41.00 | 892 | 800 |
Others | 35 | 32 | ||||
Carrying amount | 926 | 832 |
EUR million | 2023 | 2022 |
Sales | 126 | 147 |
Net operating expenses | -69 | -103 |
Biological asset valuation | 121 | 189 |
Operating result | 178 | 233 |
Net financial items | -12 | 40 |
Net result before tax | 166 | 273 |
Income tax | -30 | -52 |
Net result for the year | 136 | 221 |
EUR million | 2023 | 2022 |
Forest Assets | 3,456 | 3,101 |
Other non-current assets | 73 | 70 |
Current assets | 102 | 73 |
Non-current liabilities | 851 | 752 |
Current liabilities | 146 | 120 |
Tax liabilities | 459 | 420 |
Sales | 194 | 176 |
Net result for the year | 341 | 542 |
Other comprehensive income | -57 | 141 |
Total comprehensive income | 284 | 683 |
Dividends received during the financial year | 60 | 25 |
Net assets of the associate | 2,175 | 1,952 |
Ownership interest | 41.00% | 41.00% |
Carrying amount of the Group's interest in Tornator Oyj | 892 | 800 |
EUR million | 2023 | 2022 |
Non-current assets | 33 | 35 |
Current assets | 13 | 12 |
Non-current liabilities | 0 | 3 |
Current liabilities | 11 | 12 |
Sales | 47 | 74 |
Net result for the year | -4 | -2 |
Dividends received during the financial year | 0 | 1 |
Net assets of the associates | 35 | 32 |
Associate company value | 35 | 32 |
Associate company value for Tornator Oyj | 892 | 800 |
Total associate company value | 926 | 832 |
EUR million | 2023 | 2022 |
Receivables from associated companies | ||
Non-current loan receivables | 2 | 2 |
Trade receivables | 2 | 1 |
Liabilities to associated companies | ||
Trade payables | 128 | 101 |
EUR million | 2023 | 2022 |
Sales to associated companies | 16 | 19 |
Purchases from associated companies | 181 | 163 |
EUR million | 2023 | 2022 |
Carrying amount at 1 January | 1,445 | 918 |
Change in fair value - OCI | -645 | 519 |
Change in fair value - Income statement | 0 | 0 |
Additions | 18 | 10 |
Disposals | 0 | 0 |
Translation difference and other changes | 0 | -2 |
Carrying amount at 31 December | 819 | 1,445 |
EUR million | Share Series | % Holding | Asset Category | Fair value 2023 | Fair value 2022 |
Pohjolan Voima Oyj | A | 20.6 | Hydro | 226 | 307 |
Pohjolan Voima Oyj | B, B2 | 15.7, 14.8 | Nuclear | 546 | 1,113 |
Pohjolan Voima Oyj | C,C2,V,M | Various | Various | 7 | 4 |
Total | 778 | 1,423 |
EUR million | Holding % | Number of shares | Acquisition cost | Fair value |
Packages Ltd, Pakistan - listed shares | 6.4 | 5,396,650 | 3 | 9 |
Total listed securities | 3 | 9 | ||
Pohjolan Voima Oyj | 15.7 | 5,073,972 | 131 | 778 |
Other unlisted securities | 32 | 32 | ||
Total unlisted securities | 163 | 810 | ||
Total Equity instruments at 31 December 2023 | 166 | 819 | ||
Total Equity instruments at 31 December 2022 | 147 | 1,445 |
EUR million | 2023 | 2022 |
Value at 1 January | 123 | 137 |
Emission allowances allocated | 146 | 160 |
Sales | -64 | -62 |
Settlement with the government | -98 | -85 |
Disposals and classification as held for sale | — | -27 |
Value at 31 December | 108 | 123 |
EUR million | 2023 | 2022 |
Prepaid expenses and accrued income | 25 | 22 |
Tax credit | 4 | 4 |
Other non-current operative assets | 29 | 12 |
Total | 58 | 38 |
EUR million | 2023 | 2022 |
Materials and supplies | 384 | 501 |
Work in progress | 62 | 84 |
Finished goods | 774 | 962 |
Spare parts and consumables | 307 | 337 |
Other inventories | 29 | 25 |
Advance payments and cutting rights | 52 | 63 |
Obsolescence allowance - spare parts and consumables | -100 | -103 |
Obsolescence allowance - finished goods | -18 | -19 |
Net realisable value allowance | -25 | -40 |
Total | 1,466 | 1,810 |
EUR million | 2023 | 2022 |
Trade receivables - gross carrying amount including amount held for sale | 939 | 1,329 |
Trade receivables - gross carrying amount held for sale | -46 | -92 |
Trade receivables - gross carrying amount | 893 | 1,236 |
Loss allowance | -27 | -32 |
Prepaid expenses and accrued income | 80 | 68 |
Other receivables | 245 | 200 |
Total | 1,191 | 1,473 |
EUR million | 2023 | 2022 |
Not overdue | 841 | 1,213 |
Less than 30 days overdue | 57 | 55 |
31 to 60 days overdue | 1 | 10 |
61 to 90 days overdue | 3 | 2 |
91 to 180 days overdue | 1 | 3 |
Over 180 days overdue | 36 | 47 |
Total | 939 | 1,329 |
EUR million | 2023 | 2022 |
Not overdue and less than 90 days overdue | 2 | 5 |
91 to 365 days overdue | 2 | 7 |
Over 365 days overdue | 23 | 21 |
Total | 27 | 32 |
EUR million | 2023 | 2022 |
Opening balance at 1 January | 32 | 26 |
Change in loss allowance booked through income statement | 9 | 13 |
Write-offs | -15 | -6 |
Other | 1 | 0 |
Closing balance at 31 December | 27 | 32 |
EUR million | 2023 | 2022 |
Share-based payments | 2 | 2 |
Other payables | 9 | 9 |
Total | 11 | 11 |
EUR million | 2023 | 2022 |
Trade payables | 1,582 | 1,831 |
Payroll and staff-related accruals | 224 | 245 |
Accrued liabilities and deferred income | 112 | 130 |
Emission liabilities | 79 | 91 |
Advances received | 18 | 18 |
Other payables1 | 96 | 94 |
Total | 2,112 | 2,410 |
1 Other payables consist especially of taxes payable to government, such as VAT and payroll taxes. |
EUR million | Environmental provisions | Restructuring provisions | Other provisions | Total provisions |
Carrying Value at 1 January 2022 | 75 | 88 | 67 | 231 |
Translation difference | -4 | -3 | -2 | -9 |
Disposals and classification as held for sale | -3 | -1 | 0 | -4 |
Charge in Income Statement | ||||
New provisions | 14 | 8 | 19 | 40 |
Increase in existing provisions | 1 | 12 | 2 | 15 |
Reversal of existing provisions | -1 | -16 | -8 | -25 |
Payments | -9 | -66 | -50 | -124 |
Carrying Value at 31 December 2022 | 73 | 21 | 30 | 124 |
Translation difference | 0 | 0 | 1 | 1 |
Disposals and classification as held for sale | 3 | 0 | 0 | 3 |
Charge in Income Statement | ||||
New provisions | 7 | 89 | 12 | 107 |
Increase in existing provisions | 4 | 4 | 1 | 8 |
Reversal of existing provisions | -16 | -7 | 0 | -22 |
Payments | -9 | -31 | -14 | -54 |
At 31 December 2023 | 63 | 77 | 28 | 168 |
Allocation between current and non- current provisions | ||||
Current provisions: Payable within 12 months | 1 | 72 | 12 | 85 |
Non-current provisions: Payable after 12 months | 61 | 5 | 16 | 83 |
Total at 31 December 2023 | 63 | 77 | 28 | 168 |
As at 31 December 2023 | As at 31 December 2022 | |||
EUR million | Floating rate | Fixed rate | Floating rate | Fixed rate |
Non-current interest-bearing receivables1 | 11 | 51 | 11 | 80 |
Current interest-bearing receivables1 | 1 | 14 | 1 | — |
Cash and cash equivalents | 2,464 | 1,917 | ||
Interest-bearing liabilities2 | -1,422 | -4,293 | -1,074 | -2,818 |
Interest-bearing assets and liabilities excluding interest rate derivatives | 1,053 | -4,229 | 855 | -2,738 |
Interest-rate and cross-currency swaps | 488 | -488 | 650 | -650 |
Interest-bearing assets and liabilities, net of interest rate derivatives | 1,541 | -4,717 | 1,506 | -3,388 |
As at 31 December 2023 | As at 31 December 2022 | |||||||||||
EUR million | EUR | SEK | USD | GBP | AUD | UYU | EUR | SEK | USD | GBP | AUD | UYU |
Estimated annual net cash flow exposure in hedged foreign-currency flows1 | 63 | -48 | 83 | -48 | ||||||||
Cash flow hedges for the next 12 months | 188 | -34 | -15 | 27 | 119 | -59 | -26 | 26 | ||||
Estimated annual net cash flow exposure, net of hedges | -90 | 93 | 47 | -21 | 57 | -22 | ||||||
Hedging percentage as at 31 December for next 12 months | 58% | 68% | 44% | 27% | 25% | 57% | 55% | 50% | 43% | 24% | 31% | 54% |
Weighted-average hedged rate against EUR2 | ||||||||||||
Operative receivables and payables net exposure | -38 | -23 | 18 | 18 | -5 | -22 | 8 | 30 | 49 | -5 | ||
Net receivable currency hedges | -7 | 7 | -15 | -20 | — | -18 | -3 | -16 | -51 | — | ||
Net operative receivables exposure, net of hedges | -45 | -15 | 62 | 3 | -2 | -5 | -39 | 5 | 98 | 14 | -2 | -5 |
Estimated annual net transaction risk exposure after hedges | 96 | 46 | -26 | 55 | -27 | |||||||
1 Cash flows are forecasted highly probable net operating foreign-currency cash flows in hedged currencies. The exposure presented in the EUR column relates to operative transaction risk exposure from EUR denominated cash flows in Group companies located in Sweden, Czech Republic and Poland with functional currency other than EUR. 2 The weighted-average exchange rate against EUR is calculated based on bought leg of option collar structure and forward contracts' forward rate and therefore represents the weighted-average hedged rate based on the least favourable hedged rate from the Group's point-of-view. |
As at 31 December 2023 | As at 31 December 2022 | |||||||||||
EUR million | EUR | SEK | USD | GBP | AUD | UYU | EUR | SEK | USD | GBP | AUD | UYU |
Exposure currency change by1 | -5% | -5% | -5% | -5% | -5% | -10% | -5% | -5% | -5% | -5% | -5% | -10% |
Effect on estimated annual net cash flows in hedged flows | -34 | 14 | -72 | -6 | -3 | 5 | -48 | 12 | -99 | -12 | -4 | 5 |
Effect on cash flow hedging OCI reserve before taxes as at year end 2 | 20 | -9 | 32 | 2 | 1 | -3 | 26 | -6 | 42 | 3 | 1 | -3 |
Effect on net operative receivables and payables after hedges3 | 2 | 1 | -3 | — | — | 1 | 2 | — | -5 | -1 | — | — |
Estimated annual EBIT impact4 | -12 | 5 | -44 | -5 | -2 | 3 | -20 | 6 | -62 | -10 | -3 | 3 |
1 The sensitivity analysis for EUR denominated annual net cash flows, operative net receivables and related hedges refer to the EUR denominated transaction risk arising from EUR denominated foreign-currency cash flows in Sweden, Czech Republic and Poland with functional currency other than EUR. 2 The effect on OCI cash flow hedging reserve before taxes at year end is related to the fair value change in derivative contracts qualifying as cash flow hedges of highly probable forecast transactions under IFRS 9. Amount effecting OCI will be recycled to operative result when the transaction realises. 3 Currency effect related to net operative receivables or payables and related hedges. 4 The estimated annual EBIT impact includes currency effects in respect of operative exposures in the Statement of Financial Position, forecast cash flows and the related hedges. |
As at 31 December 2023 | As at 31 December 2022 | |||||||||
EUR million | SEK | USD | CNY | PLN | CZK | SEK | USD | CNY | PLN | CZK |
Foreign-currency net debt1 | 140 | -121 | 185 | -3 | 24 | -418 | -101 | 355 | -6 | -62 |
Currency hedges | -158 | -5 | — | -5 | -21 | -3 | -46 | -211 | -7 | 62 |
Net exposure after hedges | -18 | -126 | 185 | -8 | 3 | -422 | -146 | 144 | -12 | — |
Internal transaction exposure | 137 | 13 | 138 | 45 | ||||||
Currency hedges | — | — | -124 | -41 | ||||||
Net non-operative exposure | 137 | — | — | 13 | — | — | — | — | 14 | 3 |
Exposure currency change by | -5% | -5% | -5% | -5% | -5% | -5% | -5% | -5% | -5% | -5% |
Effect in the Income Statement2 | -6 | 6 | -9 | -1 | — | 21 | 7 | -7 | — | 6 |
1 The Group has designated certain internal loans to Chinese subsidiaries as net investment loans under IAS 21. The loans are denominated in EUR, USD, and CNY. The underlying foreign currency gain or loss will be posted as part of CTA in Equity. The nominal amount of net investment loans amounted to EUR 591 (EUR 398) million as per the year end and reduces the currency exposure for relevant currencies in the above table. 2 Gains and losses are recognised as part of Net financial items in the Income Statement |
As at 31 December 2023 | As at 31 December 2022 | |||||||||
EUR million | SEK | USD | BRL | CZK | CNY | SEK | USD | BRL | CZK | CNY |
Translation exposure in Income Statement | -357 | -196 | -179 | -65 | 67 | -147 | -192 | -164 | -38 | 77 |
Exposure currency change by | -5% | -5% | -10% | -5% | -5% | -5% | -5% | -10% | -5% | -5% |
Effect on EBIT from translation risk exposure | 18 | 10 | 18 | 3 | -3 | 7 | 10 | 16 | 2 | -4 |
As at 31 December | ||
EUR million | 2023 | 2022 |
Translation exposure on equity in USD area1 | 1,625 | 1,686 |
EUR/USD equity hedges2 | -271 | -281 |
Translation exposure after hedges | 1,354 | 1,405 |
Sensitivity before hedges - EUR strengthening 5% | -81 | -84 |
Sensitivity after hedges - EUR strengthening 5% | -68 | -70 |
1 Includes the joint operation Montes del Plata in Uruguay, which has USD as its functional currency. 2 USD denominated bonds classified as hedges of net investments in foreign assets. |
EUR million | 2024 | 2025 | 2026 | 2027 | 2028 | 2029+ | Total |
Bond loans | 136 | 440 | 590 | 591 | 548 | 1,310 | 3,615 |
Loans from credit institutions | 140 | 717 | 105 | 5 | 5 | 27 | 998 |
Lease liabilities | 71 | 57 | 48 | 43 | 39 | 263 | 520 |
Other non-current financial liabilities | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
Non-current borrowings including current portion | 347 | 1,217 | 742 | 639 | 592 | 1,600 | 5,137 |
Estimated contractual finance charges | 193 | 152 | 113 | 82 | 69 | 194 | 802 |
Estimated contractual lease charges | 29 | 26 | 25 | 23 | 22 | 225 | 350 |
Contractual repayments on non- current borrowings | 569 | 1,395 | 880 | 744 | 683 | 2,018 | 6,289 |
Current borrowings, carrying amounts | 595 | 0 | 0 | 0 | 0 | 0 | 595 |
Gross-settled derivative liabilities - receipts | -2,154 | 0 | 0 | 0 | 0 | 0 | -2,154 |
Gross-settled derivative liabilities - payments | 2,132 | 0 | 0 | 0 | 0 | 0 | 2,132 |
Trade payables | 1,666 | 0 | 0 | 0 | 0 | 0 | 1,666 |
Estimated contractual finance charges | 9 | 0 | 0 | 0 | 0 | 0 | 9 |
Total contractual repayments at 31 December 2023 | 2,817 | 1,395 | 880 | 744 | 683 | 2,018 | 8,537 |
EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | Total |
Bond loans | 300 | 270 | 404 | 90 | 325 | 1,081 | 2,470 |
Loans from credit institutions | 306 | 40 | 273 | 5 | 0 | 0 | 624 |
Lease liabilities | 63 | 49 | 44 | 33 | 30 | 159 | 377 |
Other non-current financial liabilities | 0 | 2 | 0 | 0 | 0 | 0 | 2 |
Non-current borrowings including current portion | 668 | 361 | 721 | 128 | 355 | 1,240 | 3,472 |
Estimated contractual finance charges | 108 | 90 | 74 | 43 | 40 | 190 | 545 |
Estimated contractual lease charges | 16 | 14 | 13 | 11 | 10 | 58 | 123 |
Contractual repayments on non- current borrowings | 792 | 465 | 807 | 182 | 405 | 1,489 | 4,140 |
Short-term borrowings, carrying amounts | 429 | 0 | 0 | 0 | 0 | 0 | 429 |
Gross-settled derivative liabilities - receipts | -2,405 | 0 | 0 | 0 | 0 | 0 | -2,405 |
Gross-settled derivative liabilities - payments | 2,401 | 0 | 0 | 0 | 0 | 0 | 2,401 |
Net-settled derivative liabilities | -4 | 0 | 0 | 0 | 0 | 0 | -5 |
Trade payables | 1,831 | 0 | 0 | 0 | 0 | 0 | 1,831 |
Bank overdrafts | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Estimated contractual finance charges | 6 | 0 | 0 | 0 | 0 | 0 | 6 |
Total contractual repayments at 31 December 2022 | 3,050 | 464 | 807 | 182 | 405 | 1,489 | 6,398 |
As at 31 December 2023 | As at 31 December 2022 | |||||||
Underlying amount of commodity hedged | Average hedged commodity price | Nominal amount hedged in EUR million | Fair value EUR million | Underlying amount of commodity hedged | Average hedged commodity price | Fair value EUR million | ||
Electricity purchases | ||||||||
- Nordic region | EUR 55.6 | 14 | -1 | EUR 29.1 | 5 | 18 | ||
Oil purchases | USD 75.9 | 14 | -1 | USD 73.5 | 14 | 0 |
As at 31 December | ||
EUR million | 2023 | 2022 |
Interest-bearing liabilities1 | 5,780 | 3,976 |
Interest-bearing assets1 | 2,613 | 2,122 |
Net debt | 3,167 | 1,853 |
Equity attributable to owners of the parent | 10,985 | 12,532 |
Operational EBITDA2 | 989 | 2,529 |
Net debt to equity ratio | 0.29 | 0.15 |
Net debt to operational EBITDA | 3.2 | 0.7 |
1 Interest-bearing liabilities and assets in the table include the respective amounts classified as held for sale. More detailed reconciliation of net debt is included in the "Alternative performance measures" chapter in the Report of the Board of Directors. 2 Operational EBITDA definition is included in the "Alternative performance measures" chapter in the Report of the Board of Directors. |
Fair value hierarchy | |||||||||
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note |
Financial assets | |||||||||
Listed securities | — | 9 | — | 9 | 9 | 9 | — | — | 4.4 |
Unlisted securities | — | 794 | 15 | 810 | 810 | — | — | 810 | 4.4 |
Non-current interest-bearing receivables | 62 | 14 | — | 76 | 76 | — | 15 | — | 5.3 |
Derivative assets | — | 14 | — | 15 | 15 | — | 15 | — | |
Loan receivables | 62 | — | — | 62 | 62 | — | — | — | |
Trade and other operative receivables | 835 | 30 | — | 865 | 865 | — | 30 | — | 4.7 |
Current interest-bearing receivables | 21 | 39 | 4 | 64 | 64 | — | 43 | — | 5.3 |
Derivative assets | — | 39 | 4 | 43 | 43 | — | 43 | — | |
Other short-term receivables | 21 | — | — | 21 | 21 | — | — | — | |
Cash and cash equivalents | 2,464 | — | — | 2,464 | 2,464 | — | — | — | |
Total | 3,382 | 887 | 19 | 4,288 | 4,288 | 9 | 87 | 810 |
Fair value hierarchy | |||||||||
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note |
Financial liabilities | |||||||||
Non-current interest-bearing liabilities | 4,445 | 1 | — | 4,446 | 5,071 | — | 1 | — | 5.3 |
Derivative liabilities | — | 1 | — | 1 | 1 | — | 1 | — | |
Non-current debt | 4,445 | — | — | 4,445 | 5,069 | — | — | — | |
Current portion of non-current debt | 286 | — | — | 286 | 286 | — | — | — | 5.3 |
Current interest-bearing liabilities | 469 | 4 | 2 | 476 | 476 | — | 6 | — | 5.3 |
Derivative liabilities | — | 4 | 2 | 6 | 6 | — | 6 | — | |
Current debt | 469 | — | — | 469 | 469 | — | — | — | |
Trade and other operative payables | 1,806 | — | — | 1,806 | 1,806 | — | — | — | 4.8 |
Bank overdrafts | — | — | — | — | — | — | — | — | |
Total | 7,006 | 6 | 2 | 7,014 | 7,639 | — | 8 | — | |
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion. |
Fair value hierarchy | |||||||||
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note |
Financial assets | |||||||||
Listed securities | — | 8 | — | 8 | 8 | 8 | — | — | 4.4 |
Unlisted securities | — | 1,423 | 14 | 1,437 | 1,437 | — | — | 1,437 | 4.4 |
Non-current interest-bearing receivables | 92 | 28 | — | 120 | 120 | — | 28 | — | 5.3 |
Derivative assets | — | 28 | — | 28 | 28 | — | 28 | — | |
Loan receivables | 92 | — | — | 92 | 92 | — | — | — | |
Trade and other operative receivables | 1,138 | 66 | — | 1,204 | 1,204 | — | 66 | — | 4.7 |
Current interest-bearing receivables | 10 | 50 | 16 | 77 | 77 | — | 67 | — | 5.3 |
Derivative assets | — | 50 | 16 | 67 | 67 | — | 67 | — | |
Other short-term receivables | 10 | — | — | 10 | 10 | — | — | — | |
Cash and cash equivalents | 1,917 | — | — | 1,917 | 1,917 | — | — | — | |
Total | 3,157 | 1,576 | 30 | 4,763 | 4,763 | 8 | 161 | 1,437 |
Fair value hierarchy | |||||||||
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note |
Financial liabilities | |||||||||
Non-current interest-bearing liabilities | 2,792 | — | — | 2,792 | 2,749 | — | — | — | 5.3 |
Derivative liabilities | — | — | — | 0 | 0 | — | — | — | |
Non-current debt | 2,792 | — | — | 2,792 | 2,748 | — | — | — | |
Current portion of non-current debt | 667 | — | — | 667 | 667 | — | — | — | 5.3 |
Current interest-bearing liabilities | 462 | 30 | 20 | 513 | 513 | — | 50 | — | 5.3 |
Derivative liabilities | — | 30 | 20 | 50 | 50 | — | 50 | — | |
Current debt | 462 | — | — | 462 | 462 | — | — | — | |
Trade and other operative payables | 2,076 | — | — | 2,076 | 2,076 | — | — | — | 4.8 |
Bank overdrafts | — | — | — | 0 | 0 | — | — | — | |
Total | 5,998 | 30 | 20 | 6,048 | 6,005 | — | 51 | — | |
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion. |
EUR million | 2023 | 2022 |
Financial assets | ||
Opening balance at 1 January | 1,437 | 905 |
Reclassifications | 0 | -1 |
Gains/losses recognised in other comprehensive income | -646 | 523 |
Additions | 18 | 10 |
Closing balance at 31 December | 810 | 1,437 |
EUR million | 2023 | 2022 |
Listed securities | 9 | 8 |
Long-term derivative assets | 15 | 28 |
Long-term deposits | 48 | 48 |
Long-term loans to associated companies | 2 | 2 |
Other long-term loan receivables | 12 | 41 |
Total non-current interest-bearing assets | 85 | 128 |
Short-term derivative assets | 42 | 66 |
Other short-term loan receivables | 22 | 11 |
Cash and cash equivalents | 2,464 | 1,917 |
Total current interest-bearing assets | 2,528 | 1,994 |
Total interest-bearing assets | 2,613 | 2,122 |
EUR million | 2023 | 2022 |
Bond loans | 3,601 | 2,460 |
Loans from credit institutions | 794 | 623 |
Lease liabilities | 334 | 375 |
Long-term derivative financial liabilities | 1 | 0 |
Other non-current liabilities | 2 | 2 |
Non-current interest-bearing liabilities including current portion | 4,733 | 3,459 |
Short-term borrowings | 418 | 429 |
Interest payable | 52 | 35 |
Short-term derivative financial liabilities | 6 | 49 |
Total Interest-bearing Liabilities | 5,209 | 3,972 |
EUR million | 2023 | 2022 |
Carrying value at 1 January | 3,972 | 3,938 |
Additions in long-term debt, companies acquired | 131 | 0 |
Proceeds of new long-term debt | 2,006 | 366 |
Repayment of long-term debt | -619 | -351 |
Additions in lease liabilities, companies acquired | 99 | 0 |
Additions in lease liabilities | 109 | 45 |
Repayment of lease liabilities and interest | -87 | -73 |
Change in short-term borrowings | 177 | 75 |
Change in interest payable | 40 | 19 |
Change in derivative financial liabilities | -41 | -19 |
Disposals and classification as held for sale | -575 | -5 |
Other | 26 | 8 |
Translation differences | -29 | -32 |
Total Interest-bearing Liabilities | 5,209 | 3,972 |
Issue/ Maturity Dates | Description of Bond | Interest Rate % | Currency of Bond | Nominal Value Issued | Outstanding As at 31 December | Carrying Value As at 31 December | ||
2023 | 2022 | 2023 | 2022 | |||||
All Liabilities are Held by the Parent Company | Currency million | EUR million | ||||||
Fixed Rate | ||||||||
2006-2036 | Global 7.250% Notes 2036 | 7.25 | USD | 300 | 300 | 300 | 269 | 278 |
2016-2023 | Euro Medium Term Note | 2.125 | EUR | 300 | 0 | 300 | 0 | 300 |
2017-2027 | Euro Medium Term Note | 2.50 | EUR | 300 | 300 | 300 | 299 | 299 |
2018-2028 | Euro Medium Term Note | 2.50 | EUR | 300 | 300 | 300 | 299 | 299 |
2019-2024 | Euro Medium Term Note (Green Bond) | 1.875 | SEK | 1,750 | 484 | 1,750 | 44 | 157 |
2020-2025 | Euro Medium Term Note (Green Bond) | 2.375 | SEK | 1,550 | 1,550 | 1,550 | 140 | 140 |
2020-2030 | Euro Medium Term Note (Green Bond) | 0.625 | EUR | 500 | 500 | 500 | 496 | 495 |
2023-2027 | Euro Medium Term Note (Green Bond) | 4.75 | SEK | 400 | 400 | 0 | 36 | 0 |
2023-2026 | Euro Medium Term Note (Green Bond) | 4.00 | EUR | 500 | 500 | 0 | 499 | 0 |
2023-2029 | Euro Medium Term Note (Green Bond) | 4.25 | EUR | 500 | 500 | 0 | 497 | 0 |
2023-2027 | Euro Medium Term Note (Green Bond) | 4.75 | SEK | 600 | 600 | 0 | 54 | 0 |
2023-2028 | Euro Medium Term Note (Green Bond) | 5.00 | SEK | 2,250 | 2,250 | 0 | 202 | 0 |
Total Fixed Rate Bond Loans | 2,834 | 1,968 | ||||||
Floating Rate | ||||||||
2015-2025 | Euro Medium Term Note | Euribor+2.25 | EUR | 125 | 125 | 125 | 125 | 125 |
2015-2027 | Euro Medium Term Note | Euribor+2.35 | EUR | 25 | 25 | 25 | 25 | 25 |
2019-2024 | Euro Medium Term Note (Green Bond) | Stibor+1.45 | SEK | 1,250 | 1,030 | 1,250 | 93 | 112 |
2019-2026 | Euro Medium Term Note (Green Bond) | Stibor+1.60 | SEK | 1,000 | 1,000 | 1,000 | 90 | 90 |
2020-2025 | Euro Medium Term Note (Green Bond) | Stibor+2.20 | SEK | 1,550 | 1,550 | 1,550 | 140 | 140 |
2023-2027 | Euro Medium Term Note (Green Bond) | Stibor+1.25 | SEK | 2,350 | 2,350 | 0 | 211 | 0 |
2023-2028 | Euro Medium Term Note (Green Bond) | Stibor+1.60 | SEK | 500 | 500 | 0 | 45 | 0 |
2023-2033 | Euro Medium Term Note (Green Bond) | Stibor+2.20 | SEK | 425 | 425 | 0 | 38 | 0 |
Total Floating Rate Bond Loans | 766 | 492 | ||||||
Total Bond Loans | 3,601 | 2,460 |
EUR million | 2023 | 2022 |
Other operating income | -11 | 42 |
Other operating expense | -4 | -21 |
Borrowings, cash equivalents. lease liabilities and other | -10 | -10 |
Total | -25 | 11 |
EUR million | 2023 | 2022 |
Cash flow hedge accounted derivatives | ||
Currency hedges | -7 | -105 |
Commodity hedges | -2 | 43 |
Total | -8 | -62 |
As adjustments to sales | -7 | -103 |
As adjustments to materials and services | -2 | 41 |
Realised from OCI through income statement | -8 | -62 |
Currency hedges ineffectiveness | 1 | -2 |
Net gains/losses from cash flow hedges | -7 | -65 |
Non-hedge accounted derivatives | ||
Net receivable hedges | 5 | -12 |
Commodity contract hedges | 0 | 9 |
Net gains/losses on non-hedge accounted derivatives | 5 | -3 |
Net hedge gains/losses in operating result | -2 | -67 |
EUR million | 2023 | 2022 |
Non-hedge accounted derivatives | ||
Currency derivatives | -12 | 8 |
Interest rate derivatives | 4 | -4 |
Net gains/losses on non-hedge accounted derivatives | -8 | 4 |
Net gains/losses in financial items | -8 | 4 |
EUR million | Nominal values | Positive fair values | Negative fair values | Net fair values | Nominal values | Positive fair values | Negative fair values | Net fair values |
2023 | 2022 | |||||||
Currency derivatives | ||||||||
Forwards: Operational cash flow hedging | 1,210 | 31 | -4 | 27 | 902 | 19 | -13 | 6 |
Options: Operational cash flow hedging | 405 | 6 | -1 | 5 | 1,700 | 12 | -16 | -4 |
Total cash flow hedge accounted | 1,615 | 37 | -5 | 33 | 2,603 | 32 | -30 | 2 |
Forwards: Trade and loan receivables hedging | 379 | 4 | -1 | 3 | 1,151 | 7 | -5 | 2 |
Total non-hedge accounted | 379 | 4 | -1 | 3 | 1,151 | 7 | -5 | 2 |
Total currency derivatives | 1,994 | 41 | -6 | 35 | 3,754 | 39 | -35 | 4 |
Commodity derivatives | ||||||||
Electricity swaps: Costs hedging | 14 | 0 | -1 | -1 | 5 | 18 | 0 | 18 |
Oil swaps: Costs hedging | 14 | 0 | -1 | -1 | 14 | 1 | -1 | 0 |
Total cash flow hedge accounted | 28 | 0 | -2 | -2 | 19 | 18 | -1 | 18 |
Electricity swaps: Closed contracts | 0 | 0 | 0 | 0 | 11 | 9 | 0 | 9 |
Total non-hedge accounted | 0 | 0 | 0 | 0 | 11 | 9 | 0 | 9 |
Total commodity derivatives | 28 | 0 | -2 | -2 | 30 | 27 | -1 | 27 |
Interest rate derivatives | ||||||||
Interest rate swaps: Financial expenses hedging | 443 | 16 | 0 | 16 | 450 | 28 | 0 | 28 |
Total cash flow hedge accounted | 443 | 16 | 0 | 16 | 450 | 28 | 0 | 28 |
Cross-currency swaps: Financial expenses hedging | 0 | 0 | 0 | 0 | 200 | 0 | -15 | -15 |
Total non-hedge accounted | 0 | 0 | 0 | 0 | 200 | 0 | -15 | -15 |
Total interest rate derivatives | 443 | 16 | 0 | 16 | 650 | 28 | -15 | 13 |
Total cash flow hedge accounted | 2,086 | 54 | -7 | 47 | 3,072 | 78 | -30 | 48 |
Total non-hedge accounted | 379 | 4 | -1 | 3 | 1,363 | 16 | -20 | -4 |
Total derivatives | 2,464 | 57 | -8 | 49 | 4,435 | 95 | -51 | 44 |
EUR million | Change in value of hedged item to determine hedge effectiveness | Change in value of outstanding hedging instruments | Ineffectiveness |
Foreign exchange risk - Forward and option contracts (excluding option time value)1 | -23 | 24 | 1 |
Foreign exchange risk - Net investment hedges | -10 | 10 | 0 |
Commodity price risk - Commodity swaps | 21 | -21 | 0 |
Interest rate risk - Interest rate swaps | 13 | -13 | 0 |
1 Ineffectiveness booked in operating result. |
EUR million | Change in value of hedged item to determine hedge effectiveness | Change in value of outstanding hedging instruments | Ineffectiveness |
Foreign exchange risk - Forward and option contracts (excluding option time value)1 | 77 | -79 | -2 |
Foreign exchange risk - Net investment hedges2 | 16 | -16 | 0 |
Commodity price risk - Commodity swaps | -31 | 31 | 0 |
Interest rate risk - Interest rate swaps | -34 | 34 | 0 |
1 Ineffectiveness booked in operating result. 2 Comparison figures restated. |
EUR million | At 1 Jan 2023 | Change in fair value recognised in OCI/CTA | Reclassified from OCI to profit and loss | Reclassified to non- financial assets | Tax impact | At 31 Dec 2023 |
Foreign exchange risk - Operational cash flow hedging | 2 | 20 | 8 | 2 | -6 | 25 |
Commodity price risk - Commodity swaps | 15 | -21 | 2 | 0 | 4 | -1 |
Interest rate risk - Interest rate swaps | 23 | -13 | 0 | 0 | 3 | 13 |
1 | 0 | -1 | 0 | 0 | 0 | |
Cost of hedging reserve | -1 | 2 | 0 | 0 | 0 | 1 |
Total cash flow hedge reserve in OCI | 39 | -12 | 9 | 2 | 0 | 38 |
Foreign exchange risk - Net investment hedges | 1 | 10 | -2 | 0 | -2 | 7 |
Total net investment hedges in CTA | 1 | 10 | -2 | 0 | -2 | 7 |
Total hedging reserves | 40 | -3 | 7 | 2 | -2 | 45 |
EUR million | At 1 Jan 2022 | Change in fair value recognised in OCI/CTA | Reclassified from OCI to profit and loss | Reclassified to non- financial assets | Tax impact | At 31 Dec 2022 |
Foreign exchange risk - Operational cash flow hedging | -21 | -82 | 107 | 3 | -5 | 2 |
Commodity price risk - Commodity swaps | 23 | 41 | -52 | 0 | 3 | 15 |
Interest rate risk - Interest rate swaps | -4 | 33 | 0 | 0 | -7 | 23 |
-1 | 0 | 2 | 0 | 0 | 1 | |
Cost of hedging reserve | -1 | 0 | 0 | 0 | 0 | -1 |
Total cash flow hedge reserve in OCI | -4 | -8 | 57 | 3 | -9 | 39 |
Foreign exchange risk - Net investment hedges | 14 | -16 | 0 | 0 | 3 | 1 |
14 | -16 | 0 | 0 | 3 | 1 | |
Total hedging reserves | 10 | -24 | 57 | 3 | -6 | 40 |
Not offset in the statement of financial position | ||||
EUR million | Gross amount of recognised financial instruments | Related liabilities (-) or assets (+) subject to master netting agreements | Collateral received (-) or given (+) | Net exposure |
Derivative assets | 57 | -2 | 0 | 56 |
Derivative liabilities | -8 | 2 | 0 | -6 |
Not offset in the statement of financial position | ||||
EUR million | Gross amount of recognised financial instruments | Related liabilities (-) or assets (+) subject to master netting agreements | Collateral received (-) or given (+) | Net exposure |
Derivative assets | 95 | -30 | 0 | 65 |
Derivative liabilities | -51 | 30 | 0 | -21 |
A shares | R shares | Total | |
At 1 January 2022 | 176,244,049 | 612,375,938 | 788,619,987 |
Conversion of A shares to R shares | -5,769 | 5,769 | — |
At 31 December 2022 | 176,238,280 | 612,381,707 | 788,619,987 |
Conversion of A shares to R shares | -7,364 | 7,364 | — |
At 31 December 2023 | 176,230,916 | 612,389,071 | 788,619,987 |
Number of votes as at 31 December 20231 | 176,230,916 | 61,238,907 | 237,469,823 |
Share capital at 31 December 2023, EUR million2 | 300 | 1,042 | 1,342 |
1 R share votes are calculated by dividing the number of R shares by 10. 2 No changes in share capital in 2023 or 2022. |
EUR million | 2023 | 2022 |
At 1 January | ||
CTA on net investments | -432 | -235 |
Net investment hedges and loans | 21 | 48 |
Income tax related to hedges and loans | -5 | -8 |
Net CTA in equity | -415 | -195 |
CTA movement OCI | ||
CTA movement | 0 | -244 |
CTA release through income statement | 56 | 47 |
Net investment hedges and loans | -15 | -27 |
Income tax related to hedges and loans | 0 | 3 |
CTA movement OCI total | 41 | -220 |
At 31 December | ||
CTA on net investments | -376 | -432 |
Net investment hedges and loans | 6 | 21 |
Income tax related to hedges and loans | -4 | -5 |
Net CTA in equity | -375 | -415 |
Cumulative Translation Adjustment (CTA) | Net investment hedges and loans | Net CTA in the statement of financial position | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Brazil | -242 | -255 | 0 | 0 | -242 | -255 |
China | 151 | 131 | -4 | 10 | 147 | 141 |
Czech Republic | 39 | 43 | -9 | -9 | 30 | 34 |
Poland | -22 | -59 | 17 | 17 | -5 | -42 |
Sweden | -494 | -543 | 33 | 47 | -461 | -497 |
Uruguay (USD) | 191 | 248 | -31 | -44 | 160 | 204 |
Others | 1 | 4 | 0 | 0 | 1 | 4 |
CTA before Tax | -376 | -432 | 6 | 21 | -370 | -411 |
Taxes | 0 | 0 | -4 | -5 | -4 | -5 |
Net CTA in Equity | -376 | -432 | 2 | 17 | -375 | -415 |
Nominal amount (Currency) | Nominal amount (EUR) | Unrealised losses (EUR) | ||||
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Borrowings | ||||||
USD area | 300 | 300 | 271 | 281 | -33 | -41 |
Total hedging | 271 | 281 | -33 | -41 |
EUR million | 2023 | 2022 |
At 1 January | -30 | -16 |
Acquisitions | 2 | 0 |
Share of net result for the period | -74 | -13 |
Share of other comprehensive income | 5 | 0 |
At 31 December | -97 | -30 |
2023 | 2023 | 2022 | ||
Company | Principal place of business | Ownership held by non-controlling Interests, % | EUR million | |
Stora Enso Pulp and Paper Asia AB Group | Sweden and China | See table below | -100 | -31 |
Others | - | 3 | 1 | |
Total | -97 | -30 |
2023 | 2022 | ||||||
Company | Principal place of business | Direct-% of NCI | Indirect- % of NCI | Total-% of NCI | Direct-% of NCI | Indirect- % of NCI | Total-% of NCI |
Stora Enso Pulp and Paper Asia AB | Sweden and China | 5.79 | — | 5.79 | 5.79 | — | 5.79 |
Guangxi Stora Enso Forestry Co Ltd | China | 5.00 | 5.50 | 10.50 | 5.00 | 5.50 | 10.50 |
Stora Enso (Guangxi) Packaging Company Ltd | China | 15.00 | 4.92 | 19.92 | 15.00 | 4.92 | 19.92 |
Stora Enso (Guangxi) Forestry Company Ltd | China | 15.00 | 4.92 | 19.92 | 15.00 | 4.92 | 19.92 |
EUR million | 2023 | 2022 |
Assets | 858 | 1,235 |
Equity attributable to the owners of the parent | -345 | -165 |
Non-controlling interests1 | -100 | -31 |
Total equity | -445 | -196 |
Liabilities | 1,303 | 1,430 |
Net result for the period | -268 | -74 |
Attributable to | ||
Owners of the parent | -194 | -61 |
Non-controlling interests | -74 | -13 |
Net result for the period | -268 | -74 |
Net cash flow from operating activities | 16 | 64 |
Net cash flow from investing activities | -37 | -41 |
Net cash flow from financing activities | -23 | 4 |
Net cash flow | -43 | 27 |
1 No dividends were paid to non-controlling interests in 2023 or 2022. |
EUR million | 2023 |
Net assets acquired | |
Cash and cash equivalents | 27 |
Property, plant and equipment | 200 |
Intangible assets | 222 |
Right-of-use assets | 99 |
Working capital | 5 |
Tax assets and liabilities | -56 |
Interest-bearing assets and liabilities | -233 |
Fair value of net assets acquired | 265 |
Purchase consideration, cash part | 612 |
Purchase consideration, contingent | 0 |
Total purchase consideration | 612 |
Fair value of net assets acquired | -265 |
Non-controlling interest | 2 |
Goodwill | 349 |
Cash outflow on acquisitions | -612 |
Cash and cash equivalents of acquired subsidiaries | 27 |
Cash flow on acquisition, net of acquired cash | -584 |
EUR million | 2023 | 2022 |
Net assets sold | ||
Cash and cash equivalents | 29 | 90 |
Property, plant and equipment | 271 | 8 |
Intangible assets | 60 | 0 |
Working capital | -5 | -1 |
Tax assets and liabilities | -28 | 6 |
Interest-bearing assets and liabilities | -96 | -19 |
Net assets in disposed companies | 233 | 85 |
Total disposal consideration | 266 | 70 |
CTA release | -56 | -47 |
Asset writedowns1 | -219 | -155 |
Loan impairments | 0 | -23 |
Transaction costs | -6 | -4 |
Total net gain/loss | -247 | -244 |
1 2023 mainly related to units classified as held for sale. 2022 mainly related to writedowns in connection to Russia operation disposals and including also writedowns related to paper units which were classified as assets held for sale. |
EUR million | 2023 | 2022 |
Property, plant and equipment | 310 | 261 |
Intangible assets | 20 | 55 |
Right-of-use assets | 198 | 2 |
Forest assets | 184 | 0 |
Inventories | 79 | 91 |
Current operative receivables | 48 | 104 |
Assets held for sale | 839 | 514 |
Non-current operative liabilities | 0 | 42 |
Current operative liabilities | 99 | 163 |
Tax liabilities | 0 | 28 |
Interest-bearing liabilities | 571 | 4 |
Liabilities related to assets held for sale | 671 | 237 |
Group ownership, % | Group ownership, % | ||
Subsidiaries | Country | 2023 | 2022 |
A/O Ladenso | Russia | 0.00 | 100.00 |
Anjala Fiber & Energy Oy | Finland | 100.00 | 100.00 |
AS Stora Enso Latvija | Latvia | 100.00 | 100.00 |
Bangma Productie B.V. | Netherlands | 100.00 | 0.00 |
Bangma Verpakking B.V. | Netherlands | 100.00 | 0.00 |
Bergnät 1 AB | Sweden | 100.00 | 100.00 |
Beta Skog 1 AB | Sweden | 100.00 | 100.00 |
Cellutech AB | Sweden | 100.00 | 100.00 |
Centrum Dystrybucji i Obróbki Drewna Sp. z.o.o. | Poland | 100.00 | 100.00 |
Changzhou Stora Enso Packaging Technology Co. Ltd. | China | 100.00 | 100.00 |
DanFiber A/S | Denmark | 51.00 | 51.00 |
De Jong Box B.V. | Netherlands | 100.00 | 0.00 |
De Jong Kasser Ehf. | Iceland | 100.00 | 0.00 |
De Jong Packaging Ltd. | UK | 100.00 | 0.00 |
De Jong Verpackung GmbH | Germany | 100.00 | 0.00 |
De Jong Verpakking B.V. | Netherlands | 100.00 | 0.00 |
DJV Holding B.V. | Netherlands | 100.00 | 0.00 |
DJV Strategisch Advies B.V. | Netherlands | 100.00 | 0.00 |
Dongguan Stora Enso Inpac Packaging Co. Ltd. | China | 100.00 | 100.00 |
DuraSense AB (formerly Box Inc.) | Sweden | 100.00 | 100.00 |
eCorrugated Ltd. | UK | 100.00 | 0.00 |
Efora Oy | Finland | 0.00 | 100.00 |
Enso Alueverkko Oy | Finland | 100.00 | 100.00 |
Euro - Timber, spol. s.r.o. | Slovak Republic | 100.00 | 100.00 |
Felco B.V. | Netherlands | 100.00 | 0.00 |
Gaster Wellpappe GmbH | Germany | 100.00 | 0.00 |
Green Packaging System B.V. | Netherlands | 100.00 | 0.00 |
Guangxi Stora Enso Forestry Co. Ltd. | China | 89.50 | 89.50 |
Herman Andersson Oy | Finland | 100.00 | 100.00 |
HESPOL Sp. z.o.o. | Poland | 100.00 | 100.00 |
Jiashan Stora Enso Inpac Packaging Co. Ltd. | China | 100.00 | 100.00 |
Karpack B.V. | Netherlands | 100.00 | 0.00 |
KPMB Agri BV | Belgium | 100.00 | 0.00 |
KPMB NV | Belgium | 100.00 | 0.00 |
Lignode AB | Sweden | 100.00 | 100.00 |
Lignode Holding Oy | Finland | 100.00 | 100.00 |
Lignode Oy | Finland | 100.00 | 100.00 |
Lumipaper Ltd | UK | 100.00 | 100.00 |
Lumipaper NV | Belgium | 100.00 | 100.00 |
Mena Wood Oy Ltd | Finland | 0.00 | 100.00 |
PTI Packmitteltechnik GmbH | Germany | 100.00 | 0.00 |
Pulse Anilox Cleaning B.V. | Netherlands | 100.00 | 0.00 |
Rudico B.V. | Netherlands | 100.00 | 0.00 |
Rudico Groep B.V. | Netherlands | 100.00 | 0.00 |
Rudico Holding B.V. | Netherlands | 100.00 | 0.00 |
Selfly Store Oy | Finland | 100.00 | 100.00 |
Skogsutveckling Syd AB | Sweden | 66.67 | 66.67 |
Stora Enso China Packaging (HK) Co., Limited | Hong Kong | 100.00 | 100.00 |
Stora Enso (Guangxi) Forestry Company Ltd. | China | 80.08 | 80.08 |
Stora Enso (Guangxi) Packaging Company Ltd. | China | 80.08 | 80.08 |
Stora Enso (HK) Ltd | Hong Kong | 100.00 | 100.00 |
Stora Enso (Southern Africa) (Pty) Ltd | South Africa | 100.00 | 100.00 |
Stora Enso AB | Sweden | 100.00 | 100.00 |
Stora Enso Amsterdam B.V. | Netherlands | 100.00 | 100.00 |
Stora Enso Arapoti Holding Florestal S.A. | Brazil | 100.00 | 100.00 |
Stora Enso Australia Pty Ltd | Australia | 100.00 | 100.00 |
Stora Enso Belgium NV | Belgium | 100.00 | 100.00 |
Stora Enso Bergskog 2 AB | Sweden | 100.00 | 100.00 |
Stora Enso Bergskog 3 AB | Sweden | 100.00 | 100.00 |
Stora Enso Bois SAS | France | 100.00 | 100.00 |
Stora Enso Brasil Ltda | Brazil | 100.00 | 100.00 |
Stora Enso China Co., Ltd | China | 100.00 | 100.00 |
Stora Enso China Holdings AB | Sweden | 100.00 | 100.00 |
Stora Enso Corbehem SAS | France | 100.00 | 100.00 |
Stora Enso Danmark A/S | Denmark | 100.00 | 100.00 |
Stora Enso De Hoop B.V. | Netherlands | 100.00 | 0.00 |
Stora Enso Eesti AS | Estonia | 100.00 | 100.00 |
Stora Enso Espana S.A.U | Spain | 100.00 | 100.00 |
Stora Enso Fors AB | Sweden | 100.00 | 100.00 |
Stora Enso France SAS | France | 100.00 | 100.00 |
Stora Enso Germany GmbH | Germany | 100.00 | 100.00 |
Stora Enso Holding B.V. | Netherlands | 100.00 | 0.00 |
Stora Enso Holding France SAS | France | 100.00 | 100.00 |
Stora Enso Holdings UK Ltd | UK | 100.00 | 100.00 |
Stora Enso Hylte Bruk AB | Sweden | 0.00 | 100.00 |
Stora Enso Ingerois Oy | Finland | 100.00 | 100.00 |
Stora Enso Inpac Corrugated Packaging (Hebei) Company Limited | China | 100.00 | 100.00 |
Stora Enso Inpac Hebei Protective Packaging Co., Ltd. | China | 100.00 | 100.00 |
Stora Enso Inpac Packaging Co. Ltd | China | 100.00 | 100.00 |
Stora Enso International Oy | Finland | 100.00 | 100.00 |
Stora Enso Italia Srl | Italy | 100.00 | 100.00 |
Stora Enso Japan K.K. | Japan | 100.00 | 100.00 |
Stora Enso Kvarnsveden Industriutveckling AB | Sweden | 100.00 | 100.00 |
Stora Enso Langerbrugge NV | Belgium | 100.00 | 100.00 |
Stora Enso LLC | Ukraine | 100.00 | 100.00 |
Stora Enso Maxau GmbH | Germany | 0.00 | 100.00 |
Stora Enso Mexico S.A. | Mexico | 100.00 | 100.00 |
Stora Enso Middle East DMCC | 100.00 | 100.00 | |
Stora Enso Narew Sp.z.o.o. | Poland | 100.00 | 100.00 |
Stora Enso North American Sales, LLC | USA | 100.00 | 100.00 |
Stora Enso Nymölla Paper AB | Sweden | 0.00 | 100.00 |
Stora Enso Oulu Oy | Finland | 100.00 | 100.00 |
Stora Enso Packaging AB | Sweden | 100.00 | 100.00 |
Stora Enso Packaging AS | Estonia | 100.00 | 100.00 |
Stora Enso Packaging Oy | Finland | 100.00 | 100.00 |
Stora Enso Packaging SIA | Latvia | 100.00 | 100.00 |
Stora Enso Packaging UAB | Lithuania | 100.00 | 100.00 |
Stora Enso Paper AB | Sweden | 100.00 | 100.00 |
Stora Enso Paper France SAS | France | 100.00 | 100.00 |
Stora Enso Paper GmbH | Germany | 100.00 | 100.00 |
Stora Enso Paper Oy | Finland | 100.00 | 100.00 |
Stora Enso Paper UK Ltd | UK | 100.00 | 100.00 |
Stora Enso Pension Trust Ltd. | UK | 100.00 | 100.00 |
Stora Enso Poland S.A. | Poland | 100.00 | 100.00 |
Stora Enso Polska Sp.z.o.o. | Poland | 100.00 | 100.00 |
Stora Enso Portugal Lda | Portugal | 100.00 | 100.00 |
Stora Enso Praha s.r.o. | Czech Republic | 100.00 | 100.00 |
Stora Enso Publication Papers Oy Ltd | Finland | 100.00 | 100.00 |
Stora Enso Pulp AB | Sweden | 100.00 | 100.00 |
Stora Enso Pulp and Paper Asia AB | Sweden | 94.21 | 94.21 |
Stora Enso Skog AB | Sweden | 100.00 | 100.00 |
Stora Enso Skog AS | Norway | 100.00 | 100.00 |
Stora Enso Skog och Mark AB | Sweden | 100.00 | 100.00 |
Stora Enso South East Asia Pte Ltd | Singapore | 100.00 | 100.00 |
Stora Enso Timber AB | Sweden | 100.00 | 100.00 |
Stora Enso Timber DIY Products B.V. | Netherlands | 0.00 | 100.00 |
Stora Enso Treasury Stockholm AB | Sweden | 100.00 | 100.00 |
Stora Enso Turkey Karton Ve Kağıt Ticaret Anonim Sirketi | Turkey | 100.00 | 100.00 |
Stora Enso UK Limited | UK | 100.00 | 100.00 |
Stora Enso US Inc. | USA | 100.00 | 100.00 |
Stora Enso Veitsiluoto Oy | Finland | 100.00 | 100.00 |
Stora Enso Wood Products d.o.o. Koper | Slovenia | 100.00 | 100.00 |
Stora Enso Wood Products GmbH | Austria | 100.00 | 100.00 |
Stora Enso Wood Products Japan K.K. | Japan | 100.00 | 100.00 |
Stora Enso Wood Products Planá s.r.o. | Czech Republic | 100.00 | 100.00 |
Stora Enso Wood Products Sp.z.o.o. | Poland | 100.00 | 100.00 |
Stora Enso Wood Products Zdirec s.r.o. | Czech Republic | 100.00 | 100.00 |
Stora Enso WP Bad St. Leonhard GmbH | Austria | 100.00 | 100.00 |
Stora Enso WP HV s.r.o. | Czech Republic | 100.00 | 100.00 |
Stora Kopparbergs Bergslags AB | Sweden | 100.00 | 100.00 |
Sumarbox B.V. | Netherlands | 100.00 | 0.00 |
Sydved AB | Sweden | 66.67 | 66.67 |
Södra Norrlands Hamnbolag nr 1 AB | Sweden | 100.00 | 100.00 |
Twinpack B.V. | Netherlands | 100.00 | 0.00 |
UAB Stora Enso Lietuva | Lithuania | 100.00 | 100.00 |
Virdia B2X, LLC | USA | 100.00 | 100.00 |
Virdia LLC | USA | 100.00 | 100.00 |
Virdia Ltd | Israel | 100.00 | 100.00 |
Wellpappenfabrik Gesellschaft GmbH | Germany | 80.00 | 0.00 |
Group ownership, % | Group ownership, % | ||
Associated companies | Country | 2023 | 2022 |
A.C.D.F. Industrie | France | 35.00 | 35.00 |
Honkalahden Teollisuuslaituri Oy | Finland | 50.00 | 50.00 |
Industriewater Eerbeek B.V. | Netherlands | 37.50 | 0.00 |
Kemira Cell Sp.z.o.o. | Poland | 45.00 | 45.00 |
Metsäteho Oy | Finland | 23.95 | 23.95 |
Oy Keskuslaboratorio - Centrallaboratorium Ab | Finland | 32.24 | 32.24 |
Perkaus Oy | Finland | 33.33 | 33.33 |
SELF Logistika SIA | Latvia | 50.00 | 50.00 |
Steveco Oy | Finland | 34.39 | 34.39 |
Stora Enso Vind 1 AB | Sweden | 50.00 | 0.00 |
Suomen Keräyspaperi Tuottajayhteisö Oy | Finland | 40.09 | 40.09 |
SweTree Technologies AB | Sweden | 23.83 | 23.83 |
Tornator Oyj | Finland | 41.00 | 41.00 |
Trätåg AB | Sweden | 50.00 | 50.00 |
TreeToTextile AB | Sweden | 28.94 | 28.94 |
T&B Containers Holdings Ltd. | UK | 30.00 | 0.00 |
ZMP GMBH | Austria | 30.00 | 30.00 |
Österbergs Förpackningsmaskiner AB | Sweden | 50.00 | 50.00 |
Group ownership, % | Group ownership, % | ||
Other companies | Country | 2023 | 2022 |
AMEXCI AB | Sweden | 9.10 | 9.10 |
Arevo AB | Sweden | 12.73 | 7.89 |
CarbonScape Ltd | New Zealand | 15.00 | 0.00 |
Clic Innovation Oy | Finland | 9.87 | 9.87 |
Combient AB | Sweden | 5.40 | 5.40 |
East Office of Finnish Industries Oy | Finland | 4.00 | 4.00 |
Packages Limited | Pakistan | 6.40 | 6.40 |
Pohjolan Voima Oy | Finland | 15.71 | 15.71 |
PulPac AB | Sweden | 10.30 | 10.30 |
Radioskog AB | Sweden | 10.00 | 10.00 |
RK Returkartong AB | Sweden | 8.40 | 8.40 |
SSG Standard Solutions Group AB | Sweden | 14.29 | 14.29 |
Suomen Puukauppa Oy | Finland | 10.74 | 10.74 |
Sölvesborgs Stuveri & Hamn AB | Sweden | 0.00 | 7.36 |
T&B Containers Ltd. | UK | 30.00 | 0.00 |
Group ownership, % | Group ownership, % | ||
Joint operations | Country | 2023 | 2022 |
Celulosa y Energia Punta Pereira S.A. | Uruguay | 50.00 | 50.00 |
El Esparragal Asociación Agraria de Responsabilidad Limitada | Uruguay | 50.00 | 50.00 |
Eufores S.A. | Uruguay | 50.00 | 50.00 |
Forestal Cono Sur S.A. | Uruguay | 50.00 | 50.00 |
Ongar S.A. | Uruguay | 50.00 | 50.00 |
Stora Enso Uruguay S/A | Uruguay | 50.00 | 50.00 |
Terminal Logística e Industrial M`Bopocuá S.A. | Uruguay | 50.00 | 50.00 |
Veracel Celulose SA | Brazil | 50.00 | 50.00 |
Zona Franca Punta Pereira S.A. | Uruguay | 50.00 | 50.00 |
EUR million | 2023 | 2022 |
On own behalf | ||
Guarantees | 18 | 14 |
Other commitments | 6 | 0 |
On behalf of associated companies | ||
Guarantees | 5 | 5 |
On behalf of others | ||
Guarantees | 16 | 5 |
Other commitments | 0 | 36 |
Total | 44 | 60 |
Guarantees | 38 | 24 |
Other commitments | 6 | 36 |
Total | 44 | 60 |
EUR million | 2023 | 2022 |
Total | 683 | 593 |
Year ended 31 December | |||
EUR million | Note | 2023 | 2022 |
Sales | 2 | 2,809 | 3,325 |
Changes in inventories of finished goods and work in progress + / - | -43 | 86 | |
Production for own use | 3 | 2 | |
Other operating income | 3 | 658 | 703 |
Materials and services | 4 | -1,985 | -2,288 |
Personnel expenses | 5 | -341 | -320 |
Depreciation and impairment | 6 | -274 | -133 |
Other operating expenses | 7 | -1,283 | -889 |
3,265 | 2,839 | ||
Operating profit | -455 | 485 | |
Financial income and expenses | 9 | 278 | 290 |
Profit before Appropriations and Taxes | -177 | 775 | |
Appropriations | 10 | 222 | -331 |
Income tax expense | 11 | 0 | -28 |
Profit for the period | 45 | 416 |
As at 31 December | |||
EUR million | Note | 2023 | 2022 |
Assets | |||
Non-current assets | |||
Intangible assets | 13 | 53 | 49 |
Tangible assets | 13 | 917 | 1,032 |
Investments | 14 | 8,596 | 8,187 |
Non-current assets total | 9,567 | 9,269 | |
Current assets | |||
Inventories | 15 | 473 | 574 |
Short-term receivables | 16 | 2,257 | 1,278 |
Financial securities | 17 | 1,550 | 1,130 |
Cash in hand and at bank | 661 | 1,117 | |
Total current assets | 4,941 | 4,099 | |
Total assets | 14,508 | 13,368 | |
Equity and liabilities | |||
Equity | 18 | ||
Share capital | 1,342 | 1,342 | |
Share premium | 3,639 | 3,639 | |
Fair value reserve | 14 | 25 | |
Invested non-restricted equity fund | 633 | 633 | |
Retained earnings | 864 | 922 | |
Profit for the period | 45 | 416 | |
Total equity | 6,537 | 6,977 | |
Accumulated appropriations | 19 | 201 | 290 |
Obligatory provisions | 20 | 36 | 25 |
Liabilities | |||
Non-current liabilities | 22 | 4,123 | 2,265 |
Current liabilities | 23 | 3,611 | 3,811 |
Total liabilities | 7,734 | 6,076 | |
Total equity and liabilities | 14,508 | 13,368 |
Year ended 31 December | ||
EUR million | 2023 | 2022 |
Cash provided by operating activities | ||
Profit for the period | 45 | 416 |
Adjustments and reversal of non-cash items: | ||
Direct taxes | 0 | 28 |
Appropriations | -222 | 331 |
Depreciation according to plan and impairment | 274 | 133 |
Unrealised foreign exchange gains and losses | 38 | 18 |
Other non-cash items | 15 | 13 |
Financial income and expenses | -278 | -290 |
Change in working capital: | ||
Increase(-)/decrease(+) | ||
in current non-interest-bearing receivables | 48 | -198 |
Increase(-)/decrease(+) in inventories | 101 | -187 |
Increase(+)/decrease(-) | ||
in current non-interest-bearing liabilities | -154 | 199 |
Cash flow from operating activities before financial items and taxes | -133 | 463 |
Interest received from operating activities | 181 | 58 |
Interest paid from operating activities | -173 | -79 |
Dividends received from operating activities | 371 | 626 |
Other financial items, net | 36 | -57 |
Direct taxes paid | -23 | -2 |
Cash provided by operating activities | 259 | 1,009 |
Net cash provided by investing activities | ||
Investments in tangible and intangible assets | -166 | -186 |
Capital gains from sale of tangible and intangible assets | 0 | 0 |
Investments in other financial assets | -16 | 0 |
Investments in subsidiary shares and other capital contributions | 0 | -374 |
Proceeds from disposal of shares in associated companies and repayment of capital | 0 | 10 |
Proceeds from disposal of other investments | 0 | 0 |
Payments of non-current loan receivables | -2,184 | -626 |
Proceeds from non-current loan receivables | 780 | 944 |
Net cash provided by investing activities | -1,586 | -233 |
Year ended 31 December | ||
EUR million | 2023 | 2022 |
Cash flow from financing activities | ||
Proceeds from (issue of) long-term liabilities | 3,468 | 350 |
Proceeds from (payment of) long-term liabilities | -1,623 | -560 |
Proceeds from (issue of) short-term liabilities | 164 | 1,587 |
Proceeds from (payment of) short-term liabilities | -249 | -546 |
Dividends paid | -472 | -434 |
Group contributions received | 0 | -275 |
Cash flow from financing activities | 1,287 | 121 |
Net change in cash and cash equivalents | -39 | 897 |
Translation differences | 3 | -1 |
Cash and cash equivalents at start of year | 2,247 | 1,350 |
Cash and cash equivalents at year end | 2,211 | 2,247 |
Cash and cash equivalents at year end includes: | ||
Financial securities | 1,550 | 1,130 |
Cash in hand and at bank | 661 | 1,117 |
Cash and cash equivalents total | 2,211 | 2,247 |
Depreciation is based on the following useful lives: | |
Buildings and structures | 10–50 years |
Production machinery and equipment | 10–20 years |
Light machinery and equipment | 3–5 years |
Intellectual property rights | 3–20 years |
EUR million | 2023 | 2022 |
By division | ||
Packaging Materials | 1,564 | 1,882 |
Biomaterials | 351 | 296 |
Forest | 596 | 700 |
Wood Products | 158 | 228 |
Other | 140 | 219 |
Total | 2,809 | 3,325 |
Distribution by region | ||
Finland | 1,256 | 1,361 |
Other Europe | 888 | 1,076 |
North and South America | 211 | 298 |
Asia and Oceania | 279 | 381 |
Africa | 99 | 118 |
Others | 76 | 91 |
Total | 2,809 | 3,325 |
EUR million | 2023 | 2022 |
Rent and equivalents | 3 | 3 |
Gains on sale of fixed assets | 0 | 0 |
Insurance compensation | 0 | 0 |
Production and maintenance services | 0 | 1 |
Subsidies, grants and equivalents | 11 | 2 |
Administration services | 64 | 60 |
Proceeds from sales of emission rights | 75 | 52 |
Other operating income1 | 505 | 586 |
Total | 658 | 703 |
EUR million | 2023 | 2022 |
Materials and supplies | ||
Purchases during the period | 1,402 | 1,822 |
Change in inventories +/- | 59 | -105 |
External services | 524 | 571 |
Total Materials and Services | 1,985 | 2,288 |
EUR million | 2023 | 2022 |
Salaries and fees | 278 | 263 |
Statutory employer costs | ||
Pensions | 52 | 47 |
Other personnel costs | 10 | 9 |
Total | 341 | 320 |
Average number of employees | 2023 | 2022 |
Number of employees during the financial period | 4,048 | 4,066 |
EUR million | 2023 | 2022 |
Depreciation according to plan | 126 | 133 |
Impairment of fixed assets | 148 | 1 |
Total | 274 | 133 |
Depreciation and amortisation on each item in the statement of financial position is included under intangible and tangible assets. |
EUR million | 2023 | 2022 |
Product freight | 204 | 267 |
Sales commissions | 60 | 55 |
Rental costs | 22 | 20 |
Administration and office services | 330 | 319 |
Insurance premiums | 18 | 12 |
Other personnel expenses | 18 | 17 |
Public and other relations | 4 | 4 |
Emission rights expenses | 60 | 40 |
Other operating expenses1 | 563 | 154 |
Merger loss | 4 | 0 |
Total | 1,283 | 889 |
EUR million | 2023 | 2022 |
Audit fees | 1 | 1 |
Other audit-related fees | 0 | 0 |
Tax fees | 0 | 0 |
Other fees | 0 | 0 |
Total | 2 | 2 |
EUR million | 2023 | 2022 |
Dividend income | ||
From Group companies | 346 | 601 |
From associated companies | 25 | 25 |
From others | 1 | 0 |
Total | 371 | 626 |
Interest income from non-current investments | ||
From Group companies | 96 | 52 |
From associated companies | 1 | 0 |
From others | 1 | 2 |
Total | 98 | 55 |
Other interest and financial income | ||
From Group companies | 48 | 20 |
From associated companies | 0 | 9 |
From others | 54 | 14 |
Total | 102 | 44 |
Total financial income | 571 | 725 |
Interest and other financial expenses | ||
To Group companies | -69 | -38 |
Other financial expenses | -149 | -93 |
Total | -217 | -131 |
Impairment on investments | ||
Impairment on investments in non-current assets | -75 | -305 |
Total financial expenses | -293 | -435 |
Total financial income and expenses | 278 | 290 |
The item “Financial Income and Expenses” includes exchange rate gains/losses (net) | 15 | -17 |
EUR million | 2023 | 2022 |
Difference between depreciation according to plan and depreciation recognised in taxation | 89 | -56 |
Group contributions received | 133 | 0 |
Group contributions paid | 0 | -275 |
Total appropriations | 222 | -331 |
EUR million | 2023 | 2022 |
Income taxes from primary operations for the period | 0 | -28 |
Total income tax | 0 | -28 |
EUR million | 2023 | 2022 |
Materials and services | 40 | 43 |
Personnel expenses | 3 | 3 |
Depreciation and impairment | 29 | 12 |
Total | 72 | 58 |
Air quality protection | 19 | 9 |
Wastewater treatment | 34 | 25 |
Waste management | 12 | 15 |
Soil and groundwater protection | 1 | 1 |
Other environmental protection measures | 5 | 7 |
Total | 72 | 58 |
Intangible assets | ||||
EUR million | Intellectual property rights | Other non- current expenditure | Advance payments and acquisitions in progress | Total |
Acquisition cost 1 Jan | 171 | 23 | 14 | 208 |
Increases | 3 | 2 | 17 | 23 |
Decreases | 0 | 0 | 0 | 0 |
Reclassification | 7 | 2 | -7 | 1 |
Acquisition cost 31 Dec | 180 | 26 | 25 | 231 |
Accumulated depreciation and impairment 1 Jan | -138 | -21 | 0 | -158 |
Accumulated depreciation on decreases and reclassifications | 0 | 0 | 0 | 0 |
Depreciation for the period | -14 | -1 | 0 | -15 |
Impairments | -2 | -3 | 0 | -6 |
Accumulated depreciation 31 Dec | -153 | -25 | 0 | -178 |
Book value on 31 December 2023 | 27 | 2 | 25 | 53 |
Book value on 31 December 2022 | 33 | 2 | 14 | 49 |
Tangible assets | ||||||
EUR million | Land and water areas | Buildings and structures | Plant and equipment | Other tangible assets | Advance payments and acquisitions in progress | Total |
Acquisition cost 1 Jan | 18 | 605 | 2,853 | 181 | 107 | 3,764 |
Increases | 0 | 13 | 78 | 1 | 49 | 141 |
Decreases | 0 | -3 | -8 | 0 | 0 | -10 |
Reclassification | 0 | 10 | 83 | 1 | -96 | -1 |
Acquisition cost 31 Dec | 18 | 626 | 3,006 | 184 | 59 | 3,893 |
Accumulated depreciation and impairment 1 Jan | 0 | -433 | -2,140 | -160 | 0 | -2,734 |
Accumulated depreciation on decreases and reclassifications | 0 | 3 | 8 | 0 | 0 | 10 |
Depreciation for the period | 0 | -14 | -95 | -2 | 0 | -112 |
Impairment for the period | 0 | -22 | -119 | -2 | 0 | -142 |
Accumulated depreciation 31 Dec | 0 | -466 | -2,347 | -165 | 0 | -2,977 |
Increase in value 1 Jan | 2 | 0 | 0 | 0 | 0 | 2 |
Increase in value 31 Dec | 2 | 0 | 0 | 0 | 0 | 2 |
Book value on 31 December 2023 | 20 | 160 | 659 | 19 | 59 | 917 |
Book value on 31 December 2022 | 20 | 173 | 712 | 21 | 107 | 1,032 |
Production plant and equipment | ||||||
Book value on 31 December 2023 | 626 | |||||
Book value on 31 December 2022 | 693 |
Advance payments and acquisitions in progress | ||||
EUR million | Intangible assets | Buildings and structures | Plant and equipment | Total |
Acquisition cost 1 Jan | 14 | 5 | 101 | 121 |
Increases | 17 | 1 | 47 | 66 |
Reclassification | -7 | -5 | -91 | -104 |
Acquisition cost 31 Dec 2023 | 25 | 1 | 58 | 84 |
Capitalised environmental expenditure | |||||||
Tangible assets | 31 Dec 2023 | ||||||
EUR million | Land and water areas | Buildings and structures | Plant and equipment | Other tangible assets | Advance payments and acquisitions in progress | Total | |
Acquisition cost 1 Jan | 4 | 21 | 53 | 4 | 19 | 101 | |
Increases | 0 | 5 | 17 | 0 | -1 | 21 | |
Depreciations for the period | 0 | -4 | -24 | -1 | 0 | -29 | |
Book value on 31 December 2022 | 4 | 22 | 46 | 3 | 18 | 93 | |
Air quality protection | 1 | 6 | 33 | 0 | 11 | 50 | |
Wastewater treatment | 0 | 4 | 10 | 0 | 4 | 18 | |
Waste management | 2 | 1 | 1 | 2 | 1 | 7 | |
Soil and groundwater protection | 1 | 12 | 2 | 1 | 2 | 17 | |
Noise and vibration prevention | 0 | 0 | 1 | 1 | 0 | 1 | |
4 | 22 | 46 | 3 | 18 | 93 |
31 Dec 2022 | |||||||
EUR million | Land and water areas | Buildings and structures | Plant and equipment | Other tangible assets | Advance payments and acquisitions in progress | Total | |
Acquisition cost 1 Jan | 4 | 24 | 51 | 4 | 11 | 95 | |
Increases | 1 | 0 | 9 | 1 | 8 | 18 | |
Depreciations for the period | 0 | -2 | -8 | -1 | 0 | -12 | |
Book value on 31 December 2021 | 4 | 22 | 52 | 5 | 19 | 101 | |
Air quality protection | 1 | 7 | 35 | 0 | 12 | 55 | |
Wastewater treatment | 0 | 2 | 13 | 0 | 4 | 20 | |
Waste management | 2 | 0 | 1 | 3 | 0 | 7 | |
Soil and groundwater protection | 1 | 12 | 2 | 0 | 2 | 18 | |
Noise and vibration prevention | 0 | 0 | 1 | 1 | 0 | 1 | |
4 | 22 | 52 | 5 | 19 | 101 | ||
In 2023 and 2022, no environmentally based fines, charges or compensation were paid. Subsidies were received for environmental protection of EUR 0.9 million (EUR 1.2 million in 2022) |
EUR million | Shares in Group companies | Loan receivables from Group companies | Shares in associated companies | Loan receivables from associated companies | Other shares | Other receivables | Total investments |
Acquisition cost 1 Jan | 6,845 | 1,428 | 37 | 2 | 193 | 102 | 8,606 |
Increases | 0 | 488 | 0 | 23 | 16 | 1 | 529 |
Decreases | -15 | 0 | 0 | 0 | -34 | -49 | |
Acquisition cost 31 Dec | 6,830 | 1,916 | 37 | 25 | 209 | 68 | 9,086 |
Impairments 1 Jan | -412 | 0 | 0 | 0 | -1 | -5 | -419 |
Increases | -71 | 0 | 0 | 0 | 0 | 0 | -71 |
Impairments 31 Dec | -483 | 0 | 0 | 0 | -1 | -5 | -490 |
Book value on 31 December 2023 | 6,347 | 1,916 | 37 | 25 | 208 | 63 | 8,596 |
Book value on 31 December 2022 | 6,432 | 1,428 | 37 | 2 | 191 | 97 | 8,187 |
2023 | 2022 | |
Materials and supplies | 229 | 288 |
Work in progress | 9 | 11 |
Finished goods | 206 | 247 |
Other inventories | 0 | 0 |
Prepayments | 28 | 27 |
Total | 473 | 574 |
EUR million | 2023 | 2022 |
Short-term loan receivables | ||
Receivables from Group companies | ||
Loan receivables | 1,455 | 536 |
Interest receivables | 38 | 50 |
Total | 1,493 | 585 |
Receivables from others | ||
Loan receivables | 11 | 0 |
Commodity derivative receivables | 0 | 18 |
Other receivables | 36 | 29 |
Interest receivables | 12 | 23 |
Total | 59 | 69 |
Total current interest-bearing receivables | 1,553 | 654 |
Current non-interest-bearing receivables | ||
Receivables from Group companies | ||
Trade receivables | 240 | 150 |
Other receivables | 274 | 183 |
Commodity derivative receivables | 0 | 0 |
Accrued income | 0 | 0 |
Total | 515 | 333 |
Receivables from equity accounted investments | ||
Trade receivables | 1 | 0 |
Total | 1 | 0 |
Receivables from others | ||
Trade receivables | 137 | 219 |
Other receivables | 32 | 41 |
Accrued income | 21 | 30 |
Total | 189 | 290 |
Stora Enso may enter into factoring agreements to sell trade receivables in order to accelerate cash conversion. Nominally, such agreements led to the nominal derecognition of EUR 42,8 million (EUR 30 million in 2022) by the end of the financial period. The continuing involvement of Stora Enso in the sold receivables was estimated as being insignificant due to the non-recourse nature of the factoring arrangements involved. |
EUR million | 2023 | 2022 |
Total current non-interest-bearing receivables | 705 | 624 |
Total current receivables | 2,257 | 1,278 |
Significant accruals | ||
Tax-equivalent receivables | 0 | 3 |
Advances paid | 8 | 8 |
Other accruals | 13 | 19 |
Total | 21 | 30 |
EUR million | 2023 | 2022 |
From Group companies | 16 | 620 |
From others | 1,534 | 510 |
Total | 1,550 | 1,130 |
EUR million | 2023 | 2022 |
Restricted shareholders' equity | ||
Share capital 1 Jan | 1,342 | 1,342 |
Share capital 31 Dec | 1,342 | 1,342 |
Share premium fund 1 Jan | 3,639 | 3,639 |
Share premium fund 31 Dec | 3,639 | 3,639 |
Fair value reserve 1 Jan | 25 | -6 |
Increase (-) / Decrease (+) | -11 | 32 |
Fair value reserve 31 Dec | 14 | 25 |
Total restricted equity | 4,995 | 5,006 |
Change in share capital and number of shares are presented in Note 5.5 to the consolidated financial statements. | ||
Non-restricted shareholders' equity | ||
Invested unrestricted equity reserve 1 Jan | 633 | 633 |
Invested unrestricted equity reserve 31 Dec | 633 | 633 |
Retained earnings 1 Jan | 1,338 | 1,356 |
Dividend distribution | -473 | -434 |
Retained earnings 31 Dec | 864 | 922 |
Profit for the period | 45 | 416 |
Total non-restricted equity | 1,542 | 1,971 |
Total shareholders' equity | 6,537 | 6,977 |
Calculation of distributable equity 31 Dec | ||
Invested unrestricted equity reserve 31 Dec | 633 | 633 |
Retained earnings 31 Dec | 864 | 922 |
Profit for the period | 45 | 416 |
Total | 1,542 | 1,971 |
EUR million | 2023 | 2022 |
Depreciation difference | ||
Intellectual property rights | -4 | -1 |
Goodwill | 0 | 0 |
Other non-current expenditure | -2 | 1 |
Buildings and structures | 13 | 34 |
Plant and equipment | 198 | 257 |
Other tangible assets | -3 | -1 |
Total | 201 | 290 |
EUR million | 2023 | 2022 |
Restructuring provisions | 20 | 3 |
Environmental provisions | 14 | 20 |
Pension provisions | 1 | 1 |
Other provisions | 1 | 0 |
Total | 36 | 24 |
EUR million | 2023 | 2022 |
Deferred tax liability due to depreciation difference | -23 | -41 |
Deferred tax receivables and liabilities due to derivatives | -4 | -6 |
Deferred tax receivable due to loss | 48 | 0 |
Deferred tax receivable due to provisions | 7 | 5 |
Deferred tax receivables and liabilities due to other temporary differences | -1 | -1 |
Total deferred tax receivable | 27 | -43 |
Deferred tax liabilities and receivables excluding derivatives have not been recognised on the balance sheet. |
EUR million | 2023 | 2022 |
Non-current liabilities | ||
Bonds | 3,472 | 2,165 |
Loans from credit institutions | 651 | 100 |
Other non-current liabilities | 0 | 0 |
Other non-current liabilities to group companies | 0 | 0 |
Total | 4,123 | 2,265 |
Liabilities with maturities later than five years | ||
Bonds | 1,303 | 1,075 |
Other non-current liabilities | 4 | 5 |
Total | 1,308 | 1,080 |
Specifications of Bond loans are presented in Note 5.3 Interest-bearing liabilities in consolidated financial statements. |
EUR million | 2023 | 2022 |
Current interest-bearing liabilities | ||
Liabilities to Group companies | ||
Other loans | 2,396 | 1,966 |
Commodity derivative liabilities | 0 | 18 |
Interest due | 0 | 0 |
Total | 2,396 | 1,984 |
Liabilities to others | ||
Other loans | 224 | 141 |
Interest due | 50 | 32 |
Bonds | 136 | 300 |
Loans from credit institutions | 100 | 250 |
Total | 511 | 722 |
Total current interest-bearing liabilities | 2,907 | 2,706 |
Current non-interest-bearing liabilities | ||
Liabilities to Group companies | ||
Trade payables | 72 | 90 |
Other loans | 0 | 275 |
Commodity derivative liabilities | 1 | 6 |
Accrued liabilities and deferred income | 3 | 0 |
Total | 75 | 371 |
Liabilities to associated companies | ||
Trade payables | 126 | 98 |
Total | 126 | 98 |
Liabilities to others | ||
Advances received | 6 | 5 |
Trade payables | 393 | 468 |
Other loans | 22 | 27 |
Accrued liabilities and deferred income | 82 | 134 |
Total | 503 | 635 |
Total current non-interest-bearing liabilities | 704 | 1,105 |
Total current liabilities | 3,611 | 3,811 |
Substantial accrued liabilities and deferred income | ||
Payroll payments accrued | 56 | 66 |
Income tax accrued | 0 | 28 |
Annual discounts | 12 | 21 |
Other accrued liabilities and deferred income | 14 | 18 |
Total | 82 | 134 |
EUR million | 2023 | 2022 |
For Group debt | ||
Guarantees | 734 | 794 |
On behalf of Associated companies | ||
Guarantees | 5 | 37 |
On behalf of others | ||
Guarantees | 10 | 0 |
Loan commitments | 0 | 36 |
Other commitments, own | ||
Leasing commitments, in next 12 months | 9 | 8 |
Leasing commitments, after next 12 months | 13 | 14 |
Mortgages | 0 | 0 |
Lease commitments | 5 | 5 |
Other commitments | 15 | 12 |
Total | 792 | 906 |
Guarantees | 748 | 831 |
Leasing commitments | 23 | 22 |
Lease commitments | 5 | 5 |
Other commitments | 15 | 47 |
Total | 792 | 906 |
As at 31 December 2023 | ||||
EUR million | Nominal values | Positive fair values | Negative fair values | Fair values, Net |
Cash flow hedges entered on behalf of the parent company and its subsidiaries, for which hedge accounting is applied in target companies | ||||
Foreign exchange forwards | 2,284 | 34 | -34 | 1 |
Foreign exchange options | 667 | 7 | -5 | 2 |
Commodity contracts | 27 | 1 | -1 | 0 |
Interest rate swaps | 443 | 16 | 0 | 16 |
Non-hedge accounted derivatives | ||||
Foreign exchange forwards | 588 | 5 | -5 | 0 |
Total | 4,009 | 63 | -44 | 19 |
of which against subsidiaries | 1,586 | 6 | -37 | -31 |
of which against external parties | 2,423 | 56 | -7 | 49 |
As at 31 December 2022 | ||||
EUR million | Nominal values | Positive fair values | Negative fair values | Fair values, Net |
Cash flow hedges entered on behalf of the parent company and its subsidiaries, for which hedge accounting is applied in target companies | ||||
Currency forwards | 1,523 | 29 | -26 | 3 |
Currency options | 3,222 | 28 | -28 | 0 |
Commodity contracts | 10 | 18 | -18 | 0 |
Interest rate swaps | 442 | 28 | 0 | 28 |
Non-hedge accounted derivatives | ||||
Currency forwards | 1,493 | 8 | -8 | 0 |
Commodity contracts | 11 | 9 | 0 | 9 |
Total | 6,702 | 120 | -79 | 41 |
of which against subsidiaries | 2,571 | 29 | -45 | -15 |
of which against external parties | 4,131 | 91 | -34 | 57 |
EUR million | 2023 | 2022 |
Cash flow hedge accounted derivatives | ||
Currency hedges | 2 | -20 |
Total | 2 | -20 |
As adjustments to sales | 2 | -20 |
As adjustments to materials and services | 0 | 0 |
Items realised from the fair value reserve that are recognised in the income statement | 2 | -20 |
Net losses from cash flow hedges | 2 | -20 |
Non-hedge accounted derivatives | ||
Currency derivatives | 0 | -5 |
Net gains on non-hedge accounted derivatives | 0 | -5 |
Net hedge gains/losses in operating profit | 2 | -25 |
EUR million | 2023 | 2022 |
Non-hedge accounted derivatives | ||
Currency derivatives | -21 | -1 |
Net gains/losses in financial items | -21 | -1 |
31 December 2023 | |||
EUR million | SEK | USD | GBP |
Currency change against EUR | -5.0% | -5.0% | -5.0% |
Nominals of currency derivatives hedging next 12 months cash flow in EUR | 0 | -136 | -11 |
Estimated effect on fair value reserve in EUR (net of taxes) | 0 | 5 | 0 |
EUR million | 2023 | 2022 |
Related party transactions with associated companies and joint ventures: | ||
Purchase of materials and supplies during the year | 23 | 63 |
Interest income on non-current loan receivables | 1 | 0 |
Non-current loan receivables at year end | 26 | 2 |
Trade payables at year end | 126 | 92 |
The Group's principles for related party transactions are presented in Note 6.3 to the consolidated financial statements. |
EUR million | 2023 | 2022 |
Sales | 126 | 170 |
Other operating income | 1 | 2 |
Materials and services | -113 | -161 |
Personnel expenses | 0 | 0 |
Depreciation and impairment | -14 | -7 |
Other operating expenses | -1 | -1 |
Operating profit | -2 | 4 |
Financial income and expenses | 0 | 0 |
Profit before Appropriations and Taxes | -2 | 4 |
Appropriations | 5 | -17 |
Profit before Taxes | 3 | -13 |
Income tax expense and windfall tax | -1 | 0 |
Profit / loss for the period | 2 | -13 |
EUR million | 2023 | 2022 |
Assets | ||
Non-current assets | ||
Tangible assets | 47 | 53 |
Investments | 190 | 190 |
Non-current assets total | 237 | 243 |
Current assets | ||
Short-term receivables | 24 | 21 |
Total current assets | 24 | 21 |
Total assets | 261 | 264 |
Equity and liabilities | ||
Equity | ||
Share capital | 35 | 35 |
Share premium | 95 | 95 |
Invested non-restricted equity fund | 17 | 17 |
Retained earnings | 39 | 52 |
Profit for the period | 2 | -13 |
Total equity | 189 | 186 |
Accumulated appropriations | 10 | 15 |
Liabilities | ||
Non-current liabilities | 52 | 56 |
Current liabilities | 10 | 7 |
Total liabilities | 62 | 63 |
Total equity and liabilities | 261 | 264 |
Kari Jordan | Håkan Buskhe | |
Chair | Vice Chair | |
Elisabeth Fleuriot | Helena Hedblom | |
Astrid Hermann | Christiane Kuehne | |
Antti Mäkinen | Richard Nilsson | |
Hans Sohlström | ||
President and CEO |
• We have applied an overall group materiality of EUR 60 million. • We performed audit procedures at 24 reporting components in 11 countries that are considered significant based on our overall risk assessment and materiality. • Valuation of forest assets • Provisions and contingent liabilities • Accounting for business combinations |
Overall group materiality | EUR 60 million |
How we determined it | Based on operating profit and total assets |
Rationale for the materiality benchmark applied | We chose operating profit and total assets as the benchmarks because, in our view, they are relevant benchmarks against which the performance of the group is commonly measured by users of the financial statements. |
Key audit matter in the audit of the group | How our audit addressed the key audit matter | |
Valuation of forest assets Refer to Note 1.2 and Note 4.2 in the consolidated financial statements for the related disclosures. Forest assets comprise of biological assets and forest land excluding leased forest land assets. As of December 31, 2023 the fair value of the Group’s forest assets owned through subsidiaries, joint operations and associated companies was EUR 8 522 million. The fair value of EUR 6 123 million was related to biological assets and EUR 2 399 million was related to forest land. Forest assets in Sweden and Finland are recognised at fair value and valued by using a market approach method on the basis of the forest market transactions in the areas where Stora Enso’s forests are located. Market prices between areas vary significantly and judgment is applied to define relevant areas for market transactions used in the valuation. Market transaction data is adjusted to consider characteristics and nature of the Group’s forest assets and to exclude certain non- forest assets and transactions considered as outliers compared to other transactions. Biological assets valuation is calculated based on a discounted cash flow (DCF) method in accordance with IAS 41 Agriculture. For forest land the revaluation method is applied as defined in IAS 16 Property, plant and equipment. Forest land is revalued using a DCF method based on estimated future net cash flow streams related to trees to-be-planted in the future as well as other income, such as hunting rights, wind power leases and soil material sales. Total value determined for biological assets and forest land agrees to the market transaction based fair value of forest assets as a discount rate implied by the market transactions is used in the DCF method to value these assets. The value of biological assets outside Sweden and Finland is measured based on fair value less cost to sell. The fair value is determined using a DCF method based on sustainable forest management plans taking into account the growth potential of one cycle. The one cycle varies depending on the geographic location and species. Determining the discounted cash flows require estimates of growth, harvest, sales price and costs. The other European forest lands are revalued by using a DCF method based on its estimated future net cash flows related to trees to-be-planted in the future as well as other non-forest related income. The forest land for the plantations is accounted at cost. Due to the level of judgment involved in the valuation of forest assets as well as the significance of forest assets to the Group's financial position, this is considered to be a key audit matter. | We obtained an understanding of management’s forest assets valuation process, evaluated the design and tested the operating effectiveness of internal controls related to directly and indirectly owned forest assets. Our audit procedures over valuation of directly owned forest asset included: • Evaluation of the methodology adopted by management for the valuation; • Testing the mathematical accuracy of the model used for valuation; • Assessment of the discount rates applied in the valuation; • Assessment of the other key valuation assumptions; and • Validation of key inputs and data used in the valuation model including sales price assumptions, growth assumptions and cost assumptions. In addition, specific to the market transaction based valuation our audit procedures included: • Assessment of the definition of relevant areas for market transactions used in the valuation; • Assessment of the adjustments made to the market transaction data; and • Validation of key inputs and data used in the valuation model including market transaction data and volume of standing trees. We involved valuation specialists in the audit work over valuation of directly owned forest assets. Related to indirectly owned forest assets we have communicated with the auditors of the three largest associates and joint operations. As part of the communication, among other things, we have evaluated the audit procedures performed and conclusions reached related to valuation of biological assets. In addition, we assessed the appropriateness of disclosures related to forest assets. |
Key audit matter in the audit of the group | How our audit addressed the key audit matter | |
We obtained an understanding of management’s process to identify new obligations and changes in existing obligations. We analysed significant changes in material provisions from prior periods and obtained a detailed understanding of these changes and assumptions applied. Our audit procedures related to material provisions recognized included: • Assessment of the recognition criteria for the liability; • Evaluation of the methodology adopted by management for the measurement of the liability; • Testing of the mathematical accuracy of the measurement calculation; • Assessment of the discount rates applied in the measurement; and • Assessment of the other key measurement assumptions and inputs. We reviewed minutes of the meetings of the board of directors and board committees. We assessed the appropriateness of the presentation of the most significant contingent liabilities in the consolidated financial statements. | ||
Accounting for business combinations Refer to Note 6.1 in the consolidated financial statements for the related disclosures. The Group acquired control in De Jong Packaging Group in January, 2023. The acquisition was accounted for as a business combination. The cash purchase consideration was EUR 612 million, excluding a contingent earn-out component with a maximum amount of EUR 45 million which will be settled in cash in 2024 and is subject to De Jong Packaging Group achieving certain earnings thresholds. The contingent consideration is measured at its fair value and is estimated at EUR 0 million at the date of acquisition. The fair value of net assets acquired was estimated to be EUR 265 million. The business combination resulted in recognition of goodwill of EUR 349 million, customer related intangible assets of EUR 167 million and marketing related intangible assets of EUR 39 million. Due to the level of judgment included in accounting for business combinations and the valuation of the net assets acquired, as well as the significance of the business combination to the Group’s financial position this is considered to be a key audit matter. | We obtained an understanding of management’s process related to accounting for business combinations and estimating the value of the net assets acquired. Our audit procedures over accounting for business combinations and valuation of net asset acquired included: • Testing the cash purchase consideration; • Evaluation of the methodology adopted by management for the valuation; • Testing the mathematical accuracy of the model used for the valuation; • Assessment of the key valuation assumptions; and • Validation of key inputs and data used in the valuation model. We involved valuation specialists in the audit work over valuation of the net assets acquired. In addition, we assessed the appropriateness of disclosures related to the business combination. | |
We have no key audit matters to report with respect to our audit of the parent company financial statements. | ||
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements. |