Business News

Stora Enso Interim Review January-September 2009

Thursday 22. October 2009 - Early actions pay off - strong cash flow, all Business Areas profitable

– EUR 216 million cash flow after capital expenditure; strongest quarter since
fourth quarter of 2006
– Improved EUR 132 million operating profit excluding NRI and fair valuations;
includes EUR -28 million non-cash impact from 2003-2009 wood supply inventory
error
– EUR 655 million non-recurring items, including EUR 71 million future cash
impact, due to earlier announced impairment and restructuring costs
– Market outlook remains weak for fourth quarter of 2009


Summary of Third Quarter Results
——————————————————————————–
| Continuing Operations | | Q3/09 | Q2/09 | Q3/08 |
——————————————————————————–
| Sales | EUR | 2 231.0 | 2 184.8 | 2 722.7 |
| | million | | | |
——————————————————————————–
| EBITDA excl. NRI and fair | EUR | 255.9 | 190.4 | 302.1 |
| valuations | million | | | |
——————————————————————————–
| Operating Profit excl. NRI | EUR | 131.5 | 48.5 | 125.5 |
| and Fair Valuations | million | | | |
——————————————————————————–
| Operating loss (IFRS) | EUR | -502.6 | -209.4 | -138.7 |
| | million | | | |
——————————————————————————–
| Profit before tax excl. NRI | EUR | 106.4 | 47.2 | 117.8 |
| | million | | | |
——————————————————————————–
| Loss before tax | EUR | -548.7 | -370.6 | -161.7 |
| | million | | | |
——————————————————————————–
| Net profit excl. NRI | EUR | 92.5 | 44.9 | 116.5 |
| | million | | | |
——————————————————————————–
| Net loss | EUR | -519.7 | -368.3 | -119.1 |
| | million | | | |
——————————————————————————–
| EPS excl. NRI | EUR | 0.12 | 0.06 | 0.14 |
——————————————————————————–
| EPS | EUR | -0.66 | -0.46 | -0.16 |
——————————————————————————–
| CEPS excl. NRI | EUR | 0.29 | 0.24 | 0.37 |
——————————————————————————–
| ROCE excl. NRI | % | 7.7 | 2.8 | 5.4 |
——————————————————————————–
| ROCE excl. NRI and fair | % | 6.6 | 2.3 | 4.9 |
| valuations | | | | |
——————————————————————————–

Fair valuations include synthetic options net of realised and open hedges, CO2
emission rights, and valuations of biological assets mainly related to
associated companies’ forest assets.
NRI = Non-recurring items. These are exceptional transactions that are not
related to normal business operations. The most common non-recurring items are
capital gains, additional write-downs, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they
exceed one cent per share.

Message from CEO Jouko Karvinen:
“Our third quarter was further proof of the power of early and proactive actions
in an exceptionally difficult operational environment. The clear improvement in
earnings – with all Business Areas in the black although the profits are still
unsatisfactory — was not achieved through market recovery, or only developments
in external costs, it was significantly due to our own actions.

“We understand that these actions, including the plans announced during the
third quarter, come with a heavy burden for our employees. This is why we
believe it is important for us actively to participate with the Ministry of
Employment and the Economy of Finland in proactively dealing with regional
structural changes and establishing new alternatives for people affected by the
ongoing change in the forest products industry. This applies also to Tolkkinen
in Finland, where we already have clear interest in our property, which is a
good sign of likely re-employment opportunities for our people. The speed and
magnitude of the change in the forest products industry requires co-operation
and looking forward – and that is exactly what we are doing together with local
and national authorities.

“Through dedicated efforts, in the third quarter we have been able to
demonstrate solid cash flow, improved earnings and a strong balance sheet. This
all has a purpose beyond the short term as well. It gives us a platform to build
our future – be it selectively improving our asset base in Europe, or selected
strategic investments in Latin America and China when the opportunity and time
are right.

“Looking forward, the markets remain generally weak and the structural
overcapacity in Europe continues to put pressure on prices in several product
ranges. That, combined with unclear macroeconomic and raw material cost
development trends, makes visibility poor and quarter-by-quarter predictions
difficult. We already know the fourth quarter will be negatively impacted by
seasonally weaker demand than in the third quarter, and by maintenance and
upgrade stoppages in certain segments, but we believe it is still too early, and
it would not be very productive to spend time on 2010 forecasts yet. We rather
continue to spend all of our energy on earnings and pricing quality — and timely
implementation of our cost-reduction and restructuring programmes. We will focus
on what we can do ourselves, we will not await or speculate about market
recovery or other external improvements, but rather build our own good times to
come.”

Near-term Outlook
The demand outlook for the Group’s products remains challenging as no immediate
improvement in the market environment is anticipated. Most graphic papers are
under pressure, aggravated by weak advertising markets and structural changes in
paper consumption.

Despite slight seasonal improvement in Europe, demand for publication paper and
fine paper is predicted to be weaker in the fourth quarter than a year earlier,
resulting in oversupply. Demand is forecast to be better than a year earlier for
consumer board and weaker for industrial packaging and wood products.

In Europe prices for publication paper and fine paper are expected to remain
under pressure in the fourth quarter compared with the third quarter as supply
exceeds demand. Prices are forecast to increase for containerboard and to remain
largely unchanged for other industrial packaging grades and consumer board.
Prices for wood products are predicted to rise more slowly than in the last two
quarters as demand for sawnwood in construction markets seasonally slows down.

In China demand for uncoated magazine paper is forecast to be stronger than in
the third quarter but weaker than a year ago, leaving prices unchanged. Flat
demand is anticipated for coated fine paper with prices rising slowly.

In Latin America demand for coated magazine paper is expected to increase
slightly from the previous quarter but remain lower than a year earlier. Prices
are foreseen to remain under pressure.

Stora Enso maintains its earlier year-on-year cost deflation forecast before own
actions of approximately 4% for the full year 2009. The main contributor is
lower fibre costs, which account for half of the total cost deflation.

Markets
Compared with Q3/2008
Market demand in Europe was clearly weaker than a year ago for all the Group’s
products.

In Europe market prices in local currencies were higher for newsprint and
consumer board, and largely unchanged for coated fine paper. Wood product prices
recovered to the level of a year ago after bottoming out earlier in the year.
Prices were somewhat lower for magazine paper and clearly lower for uncoated
fine paper and industrial packaging, and also for newsprint in overseas markets.
Producer inventories were lower in newsprint, magazine paper, fine paper and
wood products.

In Latin America market demand for coated magazine paper was weaker but prices
slightly higher. In China market demand for coated fine paper was stronger but
prices lower, whereas market demand for uncoated magazine paper was
significantly weaker and prices lower.

Compared with Q2/2009
Market demand improved in Europe for magazine paper, coated fine paper, consumer
board, industrial packaging and wood products, mostly due to seasonal factors.
Market demand for newsprint and uncoated fine paper weakened.

In Europe market prices in local currencies decreased for magazine paper, fine
paper, most industrial packaging grades and newsprint, and also for newsprint in
overseas markets. Prices were largely unchanged for consumer board and increased
for RCP-based containerboard and wood products. Producer inventories were
somewhat higher in newsprint, unchanged in uncoated fine paper and slightly
lower in magazine paper, coated fine paper and wood products.

In Latin America market demand for coated magazine paper strengthened but prices
declined. In China market demand for coated fine paper and uncoated magazine
paper improved, but although coated fine paper prices rose, uncoated magazine
paper prices remained unchanged.

Stora Enso Deliveries and Production
——————————————————————————–
| | Q3/ | Q2/ | Q3/0 | 2008 | Q1-Q | Q1-Q | Chan | Chan | Chan |
| | 09 | 09 | 8 | | 3/09 | 3/08 | ge % | ge % | ge % |
| | | | | | | | Q3/0 | Q3/0 | Q1-Q |
| | | | | | | | 9-Q3 | 9-Q2 | 3/09 |
| | | | | | | | /08 | /09 | – |
| | | | | | | | | | Q1-Q |
| | | | | | | | | | 3/08 |
——————————————————————————–
| Paper and board | 2 | 2 | 2 | 11 | 7 | 8 | -12. | 3.5 | -17. |
| deliveries (1 | 587 | 500 | 971 | 836 | 430 | 985 | 9 | | 3 |
| 000 tonnes) | | | | | | | | | |
——————————————————————————–
| Paper and board | 2 | 2 | 3 | 11 | 7 | 9 | -12. | 6.7 | -17. |
| production (1 | 626 | 460 | 015 | 746 | 449 | 048 | 9 | | 7 |
| 000 tonnes) | | | | | | | | | |
——————————————————————————–
| Wood products | 1 | 1 | 1 | 5 | 3 | 4 | -17. | -8.5 | -19. |
| deliveries (1 | 190 | 301 | 441 | 893 | 604 | 471 | 4 | | 4 |
| 000 m3) | | | | | | | | | |
——————————————————————————–
| Corrugated | 245 | 238 | 271 | 1 | 711 | 817 | -9.6 | 2.9 | -13. |
| packaging | | | | 071 | | | | | 0 |
| deliveries | | | | | | | | | |
| (million m2) | | | | | | | | | |
——————————————————————————–

Mill closures and restructurings reduced comparative deliveries as follows for
the period Q1-Q3/09 compared with Q1-Q3/08: Summa Mill closure in January 2008
by some 39 000 tonnes of newsprint and 8 000 tonnes of magazine paper; Anjala
Mill restructuring in the first quarter of 2008 by some 25 000 tonnes of
magazine paper; Baienfurt Mill closure in December 2008 by some 119 000 tonnes
of cartonboard.

Q3/2009 Results (compared with Q3/2008)
Sales at EUR 2 231.0 million were EUR 491.7 million less than in the third
quarter of 2008. Deliveries were lower in all segments. Prices in local
currencies were lower in all segments.

Key Figures
——————————————————————————–
| EUR million | Q3/ | Q2/ | Q3/ | Q1-Q | Q1-Q | 2008 | Chan | Chan | Chan |
| | 09 | 09 | 08 | 3/09 | 3/08 | | ge % | ge % | ge % |
| | | | | | | | Q3/0 | Q3/0 | Q1-Q |
| | | | | | | | 9-Q3 | 9-Q2 | 3/09 |
| | | | | | | | /08 | /09 | – |
| | | | | | | | | | Q1-Q |
| | | | | | | | | | 3/08 |
——————————————————————————–
| Continuing | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Sales | 2 | 2 | 2 | 6 | 8 | 11 | -18. | 2.1 | -22. |
| | 231 | 184 | 722 | 546. | 426. | 028. | 1 | | 3 |
| | .0 | .8 | .7 | 3 | 3 | 8 | | | |
——————————————————————————–
| EBITDA excl. NRI | 255 | 190 | 302 | 580. | 863. | 1 | -15. | 34.4 | -32. |
| and fair | .9 | .4 | .1 | 6 | 9 | 027. | 3 | | 8 |
| valuations | | | | | | 2 | | | |
——————————————————————————–
| Operating profit | 131 | 48. | 125 | 183. | 360. | 388. | 4.8 | 171. | -49. |
| excl. NRI and | .5 | 5 | .5 | 0 | 0 | 4 | | 1 | 2 |
| fair valuations | | | | | | | | | |
——————————————————————————–
| Operating profit | 152 | 59. | 140 | 177. | 338. | 318. | 8.4 | 154. | -47. |
| excl. NRI | .5 | 9 | .7 | 5 | 3 | 8 | | 6 | 5 |
——————————————————————————–
| Operating margin | 6.8 | 2.7 | 5.2 | 2.7 | 4.0 | 2.9 | 30.8 | 151. | -32. |
| excl. NRI, % | | | | | | | | 9 | 5 |
——————————————————————————–
| Operating | -50 | -20 | -13 | -712 | 57.6 | -726 | -262 | -140 | n/m |
| loss/profit | 2.6 | 9.4 | 8.7 | .9 | | .6 | .4 | .0 | |
| (IFRS) | | | | | | | | | |
——————————————————————————–
| Operating | -22 | -9. | -5. | -10. | 0.7 | -6.6 | n/m | -134 | n/m |
| loss/profit, % | .5 | 6 | 1 | 9 | | | | .4 | |
| of sales | | | | | | | | | |
——————————————————————————–
| Profit before | 106 | 47. | 117 | 71.5 | 232. | 151. | -9.7 | 125. | -69. |
| tax and minority | .4 | 2 | .8 | | 5 | 6 | | 4 | 2 |
| interests excl. | | | | | | | | | |
| NRI | | | | | | | | | |
——————————————————————————–
| Loss before tax | -54 | -37 | -16 | -967 | -48. | -893 | -239 | -48. | n/m |
| and minority | 8.7 | 0.6 | 1.7 | .4 | 2 | .8 | .3 | 1 | |
| interests | | | | | | | | | |
——————————————————————————–
| Net profit for | 92. | 44. | 116 | 77.2 | 212. | 142. | -20. | 106. | -63. |
| the period excl. | 5 | 9 | .5 | | 9 | 8 | 6 | 0 | 7 |
| NRI | | | | | | | | | |
——————————————————————————–
| Net loss for the | -51 | -36 | -11 | -924 | -24. | -679 | n/m | -41. | n/m |
| period | 9.7 | 8.3 | 9.1 | .1 | 4 | .0 | | 1 | |
——————————————————————————–
——————————————————————————–
| ROCE from | 6.6 | 2.3 | 4.9 | 3.0 | 4.8 | 4.1 | 34.7 | 187. | -37. |
| continuing | | | | | | | | 0 | 5 |
| operations excl. | | | | | | | | | |
| NRI and fair | | | | | | | | | |
| valuations, % | | | | | | | | | |
——————————————————————————–
| ROCE from | 7.7 | 2.8 | 5.4 | 2.9 | 4.5 | 3.4 | 42.6 | 175. | -35. |
| continuing | | | | | | | | 0 | 6 |
| operations excl. | | | | | | | | | |
| NRI, % | | | | | | | | | |
——————————————————————————–
——————————————————————————–
| Earnings per | 0.1 | 0.0 | 0.1 | 0.10 | 0.26 | 0.18 | -14. | 100. | -61. |
| share (EPS) | 2 | 6 | 4 | | | | 3 | 0 | 5 |
| excl. NRI, EUR | | | | | | | | | |
——————————————————————————–
| EPS (basic), EUR | -0. | -0. | -0. | -1.1 | -0.0 | -0.8 | n/m | -43. | n/m |
| | 66 | 46 | 16 | 7 | 4 | 6 | | 5 | |
——————————————————————————–
| Cash earnings | 0.2 | 0.2 | 0.3 | 0.63 | 0.93 | 0.99 | -21. | 20.8 | -32. |
| per share (CEPS) | 9 | 4 | 7 | | | | 6 | | 3 |
| excl. NRI, EUR | | | | | | | | | |
——————————————————————————–
| CEPS, EUR | 0.2 | -0. | 0.2 | 0.07 | 0.78 | 0.94 | 9.1 | 182. | -91. |
| | 4 | 29 | 2 | | | | | 8 | 0 |
——————————————————————————–
——————————————————————————–
| Return on equity | -39 | -26 | -6. | -23. | -0.4 | -10. | n/m | -46. | n/m |
| (ROE), %* | .2 | .8 | 3 | 1 | | 1 | | 3 | |
——————————————————————————–
| Debt/equity | 0.5 | 0.5 | 0.4 | 0.58 | 0.42 | 0.56 | 38.1 | 9.4 | 38.1 |
| ratio* | 8 | 3 | 2 | | | | | | |
——————————————————————————–
| Equity per | 6.3 | 7.0 | 9.0 | 6.30 | 9.02 | 7.09 | -30. | -10. | -30. |
| share, EUR* | 0 | 0 | 2 | | | | 2 | 0 | 2 |
——————————————————————————–
| Equity ratio, %* | 44. | 47. | 50. | 44.4 | 50.7 | 46.2 | -12. | -5.5 | -12. |
| | 4 | 0 | 7 | | | | 4 | | 4 |
——————————————————————————–
——————————————————————————–
| Average number | 28 | 29 | 34 | 29 | 34 | 33 | -16. | -1.5 | -15. |
| of employees | 689 | 116 | 331 | 051 | 331 | 815 | 4 | | 4 |
——————————————————————————–
| Average number | | | | | | | | | |
| of shares | | | | | | | | | |
| (million) | | | | | | | | | |
——————————————————————————–
| periodic | 788 | 788 | 788 | 788. | 788. | 788. | 0.0 | 0.0 | 0.0 |
| | .6 | .6 | .6 | 6 | 6 | 6 | | | |
——————————————————————————–
| cumulative | 788 | 788 | 788 | 788. | 788. | 788. | 0.0 | 0.0 | 0.0 |
| | .6 | .6 | .6 | 6 | 6 | 6 | | | |
——————————————————————————–
| cumulative, | 788 | 788 | 788 | 788. | 788. | 788. | 0.0 | 0.0 | 0.0 |
| diluted | .6 | .6 | .6 | 6 | 6 | 6 | | | |
——————————————————————————–

NRI = Non-recurring items. These are exceptional transactions that are not
related to normal business operations. The most common non-recurring items are
capital gains, additional write-downs, provisions for planned restructuring and
penalties. Non-recurring items are normally specified individually if they
exceed one cent per share.
Fair valuations include synthetic options net of realised and open hedges, CO2
emission rights, and valuations of biological assets mainly related to
associated companies’ forest assets.
* Total operations

Reconciliation of Operating Profit
——————————————————————————–
| EUR million | Q3/ | Q2/ | Q3/ | Q1- | Q1-Q | 2008 | Chan | Chan | Chan |
| | 09 | 09 | 08 | Q3/ | 3/08 | | ge % | ge % | ge % |
| | | | | 09 | | | Q3/0 | Q3/0 | Q1-Q |
| | | | | | | | 9-Q3 | 9-Q2 | 3/09 |
| | | | | | | | /08 | /09 | -Q1- |
| | | | | | | | | | Q3/0 |
| | | | | | | | | | 8 |
——————————————————————————–
| Profit from | 125 | 42. | 129 | 157 | 339. | 346. | -3.0 | 197. | -53. |
| operations, excl. | .5 | 2 | .4 | .4 | 9 | 3 | | 4 | 7 |
| NRI | | | | | | | | | |
——————————————————————————–
| Associated | 6.0 | 6.3 | -3. | 25. | 20.1 | 42.1 | 253. | -4.8 | 27.4 |
| companies, | | | 9 | 6 | | | 8 | | |
| operational, | | | | | | | | | |
| excl. fair | | | | | | | | | |
| valuations | | | | | | | | | |
——————————————————————————–
| Operating Profit | 131 | 48. | 125 | 183 | 360. | 388. | 4.8 | 171. | -49. |
| excl. NRI and | .5 | 5 | .5 | .0 | 0 | 4 | | 1 | 2 |
| Fair Valuations | | | | | | | | | |
——————————————————————————–
| Fair valuations | 21. | 11. | 15. | -5. | -21. | -69. | 38.2 | 84.2 | 74.7 |
| | 0 | 4 | 2 | 5 | 7 | 6 | | | |
——————————————————————————–
| Operating Profit, | 152 | 59. | 140 | 177 | 338. | 318. | 8.4 | 154. | -47. |
| excl. NRI | .5 | 9 | .7 | .5 | 3 | 8 | | 6 | 5 |
——————————————————————————–
| NRI | -65 | -26 | -27 | -89 | -280 | -1 | -134 | -143 | -217 |
| | 5.1 | 9.3 | 9.4 | 0.4 | .7 | 045. | .5 | .3 | .2 |
| | | | | | | 4 | | | |
——————————————————————————–
| Operating | -50 | -20 | -13 | -71 | 57.6 | -726 | -262 | -140 | n/m |
| Loss/Profit | 2.6 | 9.4 | 8.7 | 2.9 | | .6 | .4 | .0 | |
| (IFRS) | | | | | | | | | |
——————————————————————————–

Q3/2009 Results (compared with Q3/2008) (continued)
Operating profit of EUR 131.5 million excluding non-recurring items and fair
valuations was a slight improvement on EUR 125.5 million in the previous year.
Operating profit increased by EUR 27.4 million in Consumer Board and by EUR 23.7
million in Wood Products, improved slightly in Magazine Paper and Newsprint, but
deteriorated by EUR 12.7 million in Fine Paper and by EUR 9.7 million in
Industrial Packaging. In the segment Other there was an operating loss excluding
non-recurring items and fair valuations of EUR 44.9 (EUR 7.8) million, including
a one-off non-cash net loss of EUR 27.8 million to correct an error identified
by Stora Enso in its Wood Supply Finland accounts that since 2003 has caused an
accumulating overvaluation of the wood inventory. The Group has taken actions to
correct the error and management controls in this local unit, and to ensure that
inventory valuations and controls are correct in all other units too.

In the third quarter of 2009, the Group curtailed paper and board production by
14%, pulp production by 22% and sawnwood production by 19% of capacity.

Lower sales prices in local currencies decreased the operating profit of the
paper and board segments by EUR 50 million. Wood Products sales prices were
unchanged. Lower sales volumes in all segments reduced operating profit by EUR
116 million.

Lower wood costs increased Group operating profit by approximately EUR 27
million after taking into account the correction of the wood inventory error.
Lower variable costs, including pulp, chemicals and recycled paper costs,
increased Group operating profit by EUR 87 million. Fixed costs decreased by EUR
52 million, mainly due to cost improvement actions, including restructuring.
Lower depreciation improved the operating profit by EUR 41 million. Deliveries
of wood to the Group’s mills were 17% less than a year earlier at 7.5 million
cubic metres.

The share of associated company operational results, excluding non-recurring
items and fair valuations, amounted to EUR 6.0 (EUR -3.9) million. Operating
profit includes a net effect of EUR 21.0 (EUR 15.2) million for fair valuations
related to the accounting of share-based compensation, Total Return Swaps (TRS),
CO2 emission rights and IAS 41 forest valuations mainly related to associated
companies.

Stora Enso has recorded EUR 655 million of write-downs and provisions related to
annual fixed asset impairment testing (EUR 353 million) and restructuring of the
Group (EUR 302 million) as non-recurring items in the third quarter of 2009, as
announced on 16 October 2009. The non-recurring items had a beneficial impact of
EUR 43 million on tax, net of a deferred tax asset write-down.

Net financial items were EUR -46.1 (EUR -23.0) million. Net interest expenses
decreased from EUR 40.1 million to EUR 24.7 million, mainly due to lower
interest rates. The Group has an interest rate risk policy of synchronising
interest costs with earnings over the business cycle by swapping long-term fixed
interest rates to short-term floating interest rates. Net foreign exchange
losses amounted to EUR 19.4 (gain EUR 5.6) million, of which EUR 7.1 million
related to the release of cumulative translation adjustments upon the
liquidation and return of capital of certain foreign subsidiaries. The remaining
foreign exchange loss related to borrowings, currency derivatives and bank
accounts. The net loss from other financial items amounted to EUR 2.0 (gain EUR
11.5) million.

Group capital employed was EUR 7 892.8 million on 30 September 2009, a net
decrease of EUR 2 283.2 million due to fixed asset impairments, restructuring
costs and decrease in the fair value of listed and unlisted securities.

January-September 2009 Results (compared with the same period in 2008)
Sales at EUR 6 546.3 million were EUR 1 880.0 million lower than the EUR 8 426.3
million a year earlier due to lower deliveries and lower prices in local
currencies.

Operating profit excluding non-recurring items and fair valuations decreased by
EUR 177.0 million to EUR 183.0 million as lower sales volumes, lower prices in
local currencies and higher energy costs more than offset lower fixed and fibre
costs and depreciation.

Q3/2009 Results (compared with Q2/2009)
Sales at EUR 2 231.0 million were EUR 46.2 million higher than the previous
quarter’s EUR 2 184.8 million. Operating profit excluding non-recurring items
and fair valuations increased by EUR 83.0 million to EUR 131.5 million as lower
fixed costs, higher volumes and lower depreciation more than offset lower sales
prices in local currencies. Group capital employed was EUR 7 892.8 million on 30
September 2009, a net decrease of EUR 600.6 million due to fixed asset
impairments and restructuring.

Capital Structure
——————————————————————————–
| EUR million | 30 Sep 09 | 30 Jun | 31 Dec 08 | 30 Sep 08 |
| | | 09 | | |
——————————————————————————–
| Operative fixed assets | 6 037.2 | 6 593.7 | 6 853.7 | 8 044.8 |
——————————————————————————–
| Associated companies | 1 177.3 | 1 117.9 | 1 042.5 | 1 177.1 |
——————————————————————————–
| Operative working capital | 1 471.0 | 1 540.6 | 1 674.7 | 1 882.5 |
——————————————————————————–
| Non-current interest-free | -500.2 | -482.6 | -513.6 | -432.3 |
| items, net | | | | |
——————————————————————————–
| Operating Capital Total | 8 185.3 | 8 769.6 | 9 057.3 | 10 672.1 |
——————————————————————————–
| Net tax liabilities | -292.5 | -276.2 | -282.8 | -496.1 |
——————————————————————————–
| Capital Employed | 7 892.8 | 8 493.4 | 8 774.5 | 10 176.0 |
——————————————————————————–
——————————————————————————–
| Equity attributable to | 4 968.1 | 5 518.8 | 5 594.0 | 7 112.5 |
| Company shareholders | | | | |
——————————————————————————–
| Non-controlling interests | 57.0 | 57.0 | 56.5 | 74.0 |
——————————————————————————–
| Net interest-bearing | 2 867.7 | 2 917.6 | 3 124.0 | 2 989.5 |
| liabilities | | | | |
——————————————————————————–
| Financing Total | 7 892.8 | 8 493.4 | 8 774.5 | 10 176.0 |
——————————————————————————–

Financing Q3/2009 (compared with Q2/2009)
Cash flow from operations was EUR 325.5 (EUR 189.3) million and cash flow after
investing activities EUR 216.1 (EUR 81.0) million which is the strongest since
the fourth quarter of 2006. At the end of the period, interest-bearing net
liabilities of the Group were EUR 2 867.7 million, a decrease of EUR 49.9
million.

Total unutilised committed credit facilities remained unchanged at EUR 1 400
million, and cash and cash equivalents net of overdrafts decreased by EUR 107.7
million to EUR 536.8 million. In addition, Stora Enso has access to various
long-term sources of funding up to EUR 700 million.

On 30 September 2009 Stora Enso announced that it had successfully issued a EUR
390 million seven-year bond under its EMTN (Euro Medium Term Note) programme.
The seven-year maturity of the bond will lengthen Stora Enso’s average debt
maturity profile. The bond pays a floating coupon of Euribor + 4.21% and there
are no financial covenants. Sole Lead Manager for the deal was SEK Securities.
The settlement date was October 7, and the transaction will be recorded in the
fourth quarter of 2009.

The debt/equity ratio at 30 September 2009 was 0.58 (0.53). The currency effect
on equity was positive EUR 108 million net of the hedging of equity translation
risks. The fair valuations of unlisted securities, mainly related to the
unlisted Finnish power supply company Pohjolan Voima, included within
available-for-sale assets decreased equity by EUR 49 million. The decrease in
the fair valuation of Pohjolan Voima was mainly due to an increase in the
estimated future costs of nuclear waste management.

Financing Q3/2009 (compared with Q3/2008)
At the end of the third quarter of 2009 Stora Enso had current borrowings of EUR
1 414.4 million compared with EUR 585.5 million at the end of the third quarter
of 2008. Cash and cash equivalents at the end of the third quarter of 2009
amounted to EUR 536.8 million, compared with EUR 392.0 million at the end of the
third quarter of 2008.

Cash Flow
——————————————————————————–
| EUR million | Q3/0 | Q2/ | Q3/0 | 2008 | Q1-Q | Q1-Q | Chang | Chang | Chang |
| | 9 | 09 | 8 | | 3/09 | 3/08 | e % | e % | e % |
| | | | | | | | Q3/09 | Q3/09 | Q1-Q3 |
| | | | | | | | -Q3/0 | -Q2/0 | /09- |
| | | | | | | | 8 | 9 | Q1-Q3 |
| | | | | | | | | | /08 |
——————————————————————————–
| Continuing | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Operating | -502 | -20 | -138 | -726 | -712 | 57.6 | -262. | -140. | n/m |
| loss/profit | .6 | 9.4 | .7 | .6 | .9 | | 4 | 0 | |
——————————————————————————–
| Depreciatio | 693. | 366 | 231. | 1 | 1 | 618. | 199.1 | 89.0 | 87.7 |
| n and other | 2 | .8 | 8 | 443. | 160. | 4 | | | |
| non-cash | | | | 2 | 9 | | | | |
| items | | | | | | | | | |
——————————————————————————–
| Change in | 134. | 31. | 100. | 31.8 | 330. | -164 | 34.8 | 322.9 | 301.1 |
| working | 9 | 9 | 1 | | 4 | .3 | | | |
| capital | | | | | | | | | |
——————————————————————————–
| Cash Flow | 325. | 189 | 193. | 748. | 778. | 511. | 68.5 | 71.9 | 52.1 |
| from | 5 | .3 | 2 | 4 | 4 | 7 | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Capital | -109 | -10 | -152 | -704 | -321 | -481 | 28.4 | -1.0 | 33.1 |
| expenditure | .4 | 8.3 | .8 | .7 | .9 | .2 | | | |
——————————————————————————–
| Cash Flow | 216. | 81. | 40.4 | 43.7 | 456. | 30.5 | 434.9 | 166.8 | n/m |
| after | 1 | 0 | | | 5 | | | | |
| Investing | | | | | | | | | |
| Activities | | | | | | | | | |
——————————————————————————–
| Discontinue | | | | | | | | | |
| d | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Cash flow | 0.0 | 0.0 | 0.0 | 51.5 | 0.0 | 51.5 | n/a | n/a | -100. |
| from | | | | | | | | | 0 |
| discontinue | | | | | | | | | |
| d | | | | | | | | | |
| operations | | | | | | | | | |
| after | | | | | | | | | |
| investing | | | | | | | | | |
| activities | | | | | | | | | |
——————————————————————————–
| Total Cash | 216. | 81. | 40.4 | 95.2 | 456. | 82.0 | 434.9 | 166.8 | 456.7 |
| Flow after | 1 | 0 | | | 5 | | | | |
| Investing | | | | | | | | | |
| Activities | | | | | | | | | |
——————————————————————————–

Capital Expenditure for January-September 2009
The target capital expenditure for the Group for the full year 2009 is
approximately EUR 400 million. Capital expenditure for the first three quarters
of 2009 totalled EUR 321.9 million including land acquisitions, which is 76% of
depreciation for first three quarters of 2009. The impairment charge and
restructuring write-downs in the third quarter of 2009 are expected to reduce
depreciation by EUR 15 million per quarter.

The main projects during the first three quarters of 2009 were power plants and
energy-related projects at existing mills (EUR 131 million), development of
existing production (EUR 64 million) and plantations in South America and China
(EUR 31 million).

Short-term Risks and Uncertainties
The main short-term risks and uncertainties are related to price pressure on the
Group’s products caused by structural overcapacity in several grades.

Energy sensitivity analysis for 2010: the direct effect on 2010 operating profit
of a 10% change in electricity and oil market prices would be about EUR 15
million annual impact, after the effect of hedges.

Wood sensitivity analysis for 2010: the direct effect on 2010 operating profit
of a 10% change in wood prices would be about EUR 190 million annual impact.



Near-term Outlook
The demand outlook for the Group’s products remains challenging as no immediate
improvement in the market environment is anticipated. Most graphic papers are
under pressure, aggravated by weak advertising markets and structural changes in
paper consumption.

Despite slight seasonal improvement in Europe, demand for publication paper and
fine paper is predicted to be weaker in the fourth quarter than a year earlier,
resulting in oversupply. Demand is forecast to be better than a year earlier for
consumer board and weaker for industrial packaging and wood products.

In Europe prices for publication paper and fine paper are expected to remain
under pressure in the fourth quarter compared with the third quarter as supply
exceeds demand. Prices are forecast to increase for containerboard and to remain
largely unchanged for other industrial packaging grades and consumer board.
Prices for wood products are predicted to rise more slowly than in the last two
quarters as demand for sawnwood in construction markets seasonally slows down.

In China demand for uncoated magazine paper is forecast to be stronger than in
the third quarter but weaker than a year ago, leaving prices unchanged. Flat
demand is anticipated for coated fine paper with prices rising slowly.

In Latin America demand for coated magazine paper is expected to increase
slightly from the previous quarter but remain lower than a year earlier. Prices
are foreseen to remain under pressure.

Stora Enso maintains its earlier year-on-year cost deflation forecast before own
actions of approximately 4% for the full year 2009. The main contributor is
lower fibre costs, which account for half of the total cost deflation.

Third Quarter Events
July
On 3 July 2009 Stora Enso undertook a partial buyback of the 2009 3.875% Swedish
Medium-Term Note. The nominal value bought back amounted to SEK 867.2 (EUR 80)
million and the cash amount paid was SEK 892.4 (EUR 82.6) million, of which SEK
18.5 (EUR 1.7) million related to interest. A loss of SEK 6.7 (EUR 0.6) million
has been recorded in the third quarter of 2009.

On 15 July 2009 Stora Enso announced that Stora Enso Oyj, NewPage Corporation
(“NewPage”) and NewPage’s largest shareholder, Cerberus Capital Management,
L.P., planned to reorganise NewPage’s capital structure through a series of
concurrent transactions, including debt tender offers and a potential
contribution and cancellation of a portion of the NewPage vendor note held by
Stora Enso and the debt acquired by Cerberus. On 25 September, NewPage announced
that it would not proceed with its tender offer for its Second Lien Notes,
Senior Subordinated Notes and Payment-in-Kind Notes. There was therefore, no
contribution or cancellation of the NewPage vendor note held by Stora Enso. As
of 23 September, Cerberus had validly tendered and not withdrawn USD 11.l
million of Floating Rate Notes and USD 49.0 million of 10% Notes. On 30
September NewPage announced a private placement offering of USD 1.7 billion
11.375% Senior Secured Notes due 2014. The net proceeds of the offering,
together with approximately USD 5 million of borrowings under NewPage’s
revolving credit facility, were used to repay all amounts outstanding under
NewPage’s term loan.
On 22 July 2009 Stora Enso announced that the Finnish National Board of Patents
and Registration had confirmed that Stora Enso could decrease its share premium
fund. The schedule for distribution of funds was also confirmed.

On 24 July 2009 Stora Enso announced that the Finnish National Board of Patents
and Registration had given its consent for Stora Enso Oyj to decrease its share
premium fund by EUR 1 688 145 310.08 and its reserve fund by EUR 353 946 990.12.
The funds have been decreased by transferring these respective amounts to the
invested non-restricted equity fund.

August
On 19 August 2009 Stora Enso announced that it planned further reductions in its
manufacturing capacity due to ongoing weak demand and the resulting heavy
losses, including:
permanent closure of Sunila Pulp Mill during the second quarter of 2010
permanent closure of Tolkkinen Sawmill by the end of 2009; curtailments at other
sawmills to continue
restarting divestment of Kotka Mills
uncoated fine paper orders to be prioritised to Veitsiluoto Mill and Nymölla
Mill to minimise total costs; more curtailments of uncoated fine paper machines
at Varkaus and Imatra mills
permanent shutdown of uncoated fine paper machine PM 8 at Imatra Mills during
the first quarter of 2010
permanent closure of Varkaus Mills by the end of 2010 unless uncoated fine paper
supply and demand balance and pricing clearly recover
Approximately 450 to 1 100 employees in Finland would be affected by the plans,
depending on the outcome of the plans for Varkaus Mills and excluding the Kotka
divestment process.

September
On 28 September 2009 Stora Enso announced that it is restarting production at
Enocell Pulp Mill in Finland. Enocell Pulp Mill at Uimaharju in eastern Finland
has been temporarily shut down since the end of March 2009. Production at the
mill is scheduled to resume at the beginning of November 2009.

On 30 September 2009 Stora Enso announced that it had successfully issued a EUR
390 million seven-year bond under its EMTN (Euro Medium Term Note) programme.
The seven-year maturity of the bond will lengthen Stora Enso’s average debt
maturity profile. The bond pays a floating coupon of Euribor + 4.21% and there
are no financial covenants.

Restructuring Actions
On 23 April 2009 Stora Enso announced that it was reorganising its operations
with the aim of reducing annual fixed costs by EUR 250 million, mainly through
savings in administration. The reorganisation is progressing on schedule to
reach the targeted savings. Saving plans are now ready in various parts of
administration, including Sales and Marketing. The number of employees affected
will depend on the outcome of the co-determination procedures, the majority of
which are scheduled to be concluded during 2009 or at the latest early 2010. The
majority of the cost reductions will be achieved by the end of the fourth
quarter of 2009 and start having an impact on Stora Enso’s operating profit from
the first quarter of 2010 onwards. The new cost-reduction programme incorporates
the earlier focused administration project and the restructuring of financial
administration that started in 2007. As a result Stora Enso has recorded a EUR
51 million restructuring provision as a non-recurring item in its third quarter
results.

Veracel
On 11 July 2008 Stora Enso announced that a federal judge in Brazil had issued a
decision claiming that the permits issued by the State of Bahia for the
operations of Stora Enso’s associated company Veracel were not valid. The judge
also ordered Veracel to take certain actions, including reforestation with
native trees on part of Veracel’s plantations and a possible BRL 20 million (EUR
8 million) fine. Veracel disputes the decision and has filed an appeal against
it. Veracel operates in full compliance with all Brazilian laws and has obtained
all the necessary environmental and operating licences for its industrial and
forestry activities from the competent authorities. In November 2008 a Federal
Court suspended the effects of the decision as an interim measure. Veracel has
not recorded any provision for the reforestation or the possible fine.

On 30 September 2009 a judge in the State of Bahia issued an interim decision
ordering the State Government of Bahia not to grant Veracel further plantation
licenses in the municipality of Eunápolis in response to claims by a state
prosecutor that Veracel’s plantations exceeded the legal limits, which Veracel
disputes.

Inspections by Competition Authorities
In 2007, following US Federal District Court trial, Stora Enso was found not
guilty of charges by the US Department of Justice relating to practices in the
sale of coated magazine paper in the USA in 2002 and 2003. Coincident with this
case, Stora Enso has been named in a number of class action lawsuits filed in
the USA which still are pending.

The Finnish Competition Authority has investigated wood purchase practices in
Finland. The Authority has proposed to the Finnish Market Court that a fine of
EUR 30 million be imposed on Stora Enso for violating competition laws in
purchasing practices during the period from 1997 to 2004. The Market Court is
handling the case and its decision is expected by the end of 2009. Stora Enso
considers the Competition Authority’s proposal groundless.

No provisions have been made in Stora Enso’s accounts for the above-mentioned
lawsuits and investigation.

Share Capital
During the quarter, the conversion of 2 000 A shares into R shares was recorded
in the Finnish Trade Register on 14 August 2009.

On 30 September 2009 Stora Enso had 177 150 084 A shares and 612 388 415 R
shares in issue of which the Company held no A shares and 918 512 R shares with
a nominal value of EUR 1.6 million. The holding represents 0.12% of the
Company’s share capital and 0.04% of the voting rights.

Changes in shareholdings
On 7 October 2009 Stora Enso Oyj was informed that the number of shares in the
Company held by Tradewinds Global Investors, LLC (USA registered number
801-65208) had decreased below 5% of the paid-up share capital and the number of
shares in Stora Enso Oyj on 30 September 2009.

Events after the Period
On 9 October 2009 Stora Enso announced that its co-determination negotiations at
Tolkkinen Sawmill in Finland had been concluded. Tolkkinen Sawmill will be
permanently closed down by the end of 2009. The closure will reduce Stora Enso’s
annual production capacity by 260 000 m3 of sawn wood.

On 13 October 2009 Stora Enso announced that its Nomination Committee had been
appointed. The composition of the Committee is as follows: Claes Dahlbäck
(Chairman of the Board of Directors), Ilkka Niemi (Vice Chairman of the Board of
Directors), Marcus Wallenberg (appointed by shareholder FAM) and Keijo Suila
(appointed by shareholder Solidium). Keijo Suila is the Chairman of the
Nomination Committee.

On 16 October 2009 Stora Enso announced that Stora Enso and Arauco had completed
the acquisition of the majority of Grupo ENCE’s operations in Uruguay announced
on 18 May 2009. The joint acquisition on a 50/50 basis includes approximately
130 000 hectares of owned land and plantations, 6 000 hectares of leased lands
and other operations owned by Grupo ENCE in the central and western areas of
Uruguay. As previously announced, the enterprise value of the transaction, which
was completed ahead of the original target of the end of 2009, was USD 344 (EUR
253) million, including USD 33 million of assumed debt. Stora Enso’s share of
the enterprise value is 50%.

This report is unaudited.

Helsinki, 22 October 2009
Stora Enso Oyj
Board of Directors

Segments Q3/09 compared with Q3/08


Newsprint and Book Paper
——————————————————————————–
| EUR | Q3/0 | Q2/0 | Q3/0 | 2008 | Q1-Q | Q1-Q3 | Chang | Chang | Chang |
| million | 9 | 9 | 8 | | 3/09 | /08 | e % | e % | e % |
| | | | | | | | Q3/09 | Q3/09 | Q1-Q3 |
| | | | | | | | -Q3/0 | -Q2/0 | /09- |
| | | | | | | | 8 | 9 | Q1-Q3 |
| | | | | | | | | | /08 |
——————————————————————————–
| Sales | 330. | 327. | 405. | 1 | 966. | 1 | -18.6 | 0.8 | -18.2 |
| | 0 | 5 | 2 | 594. | 2 | 180.7 | | | |
| | | | | 7 | | | | | |
——————————————————————————–
| EBITDA* | 58.6 | 57.9 | 60.7 | 255. | 164. | 171.6 | -3.5 | 1.2 | -3.9 |
| | | | | 2 | 9 | | | | |
——————————————————————————–
| Operating | 34.8 | 31.1 | 33.5 | 140. | 87.4 | 87.8 | 3.9 | 11.9 | -0.5 |
| profit* | | | | 8 | | | | | |
——————————————————————————–
| % of | 10.5 | 9.5 | 8.3 | 8.8 | 9.0 | 7.4 | 26.5 | 10.5 | 21.6 |
| sales | | | | | | | | | |
——————————————————————————–
| ROOC, %** | 12.6 | 10.9 | 11.6 | 12.1 | 10.6 | 10.0 | 8.6 | 15.6 | 6.0 |
——————————————————————————–
| Deliverie | 622 | 610 | 712 | 2 | 1 | 2 125 | -12.6 | 2.0 | -16.3 |
| s, 1 000 | | | | 870 | 778 | | | | |
| t | | | | | | | | | |
——————————————————————————–
| Productio | 627 | 600 | 707 | 2 | 1 | 2 109 | -11.3 | 4.5 | -14.7 |
| n, 1 000 | | | | 808 | 800 | | | | |
| t | | | | | | | | | |
——————————————————————————–
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital

Newsprint and book paper sales were EUR 330.0 million, down 19% on the third
quarter of 2008 due to lower deliveries. Operating profit was EUR 34.8 million,
up 4% on the third quarter of 2008 due to lower production costs, especially
fibre and fixed costs. Unfavourable exchange rate trends were mostly compensated
by higher prices in Europe.

Markets
Compared with Q3/2008
In Europe demand remained weaker than a year ago as circulations continued to
decline and advertising markets stayed very weak. Prices in Europe were higher
but under pressure, whereas overseas prices were lower.

Compared with Q2/2009
Throughout Europe demand further weakened as free daily newspapers reduced
pagination. Prices in Europe started to turn down while overseas prices seemed
to be bottoming out.

Magazine Paper
——————————————————————————–
| EUR | Q3/ | Q2/ | Q3/ | 2008 | Q1-Q3 | Q1-Q3 | Chang | Chang | Chang |
| million | 09 | 09 | 08 | | /09 | /08 | e % | e % | e % |
| | | | | | | | Q3/09 | Q3/09 | Q1-Q3 |
| | | | | | | | -Q3/0 | -Q2/0 | /09- |
| | | | | | | | 8 | 9 | Q1-Q3 |
| | | | | | | | | | /08 |
——————————————————————————–
| Sales | 469 | 396 | 544 | 2 | 1 | 1 | -13.9 | 18.4 | -23.7 |
| | .0 | .0 | .9 | 177. | 245.8 | 632.7 | | | |
| | | | | 0 | | | | | |
——————————————————————————–
| EBITDA* | 55. | 33. | 61. | 223. | 116.5 | 170.3 | -9.9 | 63.1 | -31.6 |
| | 3 | 9 | 4 | 5 | | | | | |
——————————————————————————–
| Operating | 30. | 5.7 | 27. | 88.8 | 36.2 | 69.1 | 11.7 | n/m | -47.6 |
| profit* | 6 | | 4 | | | | | | |
——————————————————————————–
| % of sales | 6.5 | 1.4 | 5.0 | 4.1 | 2.9 | 4.2 | 30.0 | n/m | -31.0 |
——————————————————————————–
| ROOC, %** | 9.3 | 1.6 | 7.2 | 6.0 | 3.6 | 6.1 | 29.2 | n/m | -41.0 |
——————————————————————————–
| Deliveries, | 565 | 512 | 688 | 2 | 1 564 | 2 077 | -17.9 | 10.4 | -24.7 |
| 1 000 t | | | | 786 | | | | | |
——————————————————————————–
| Production, | 555 | 503 | 706 | 2 | 1 559 | 2 130 | -21.4 | 10.3 | -26.8 |
| 1 000 t | | | | 774 | | | | | |
——————————————————————————–

* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital

Magazine paper sales were EUR 469.0 million, down 14% on the third quarter of
2008 due to weaker demand. Operating profit was EUR 30.6 million, up 12% on the
third quarter of 2008 as lower production costs more than offset lower sales.
Fibre and fixed costs were lower than a year ago.

Markets
Compared with Q3/2008
In Europe demand remained weaker than a year earlier, especially for coated
magazine paper, but the year-on-year decline has slowed for coated reels. Prices
were under pressure and lower than a year ago.

Throughout Latin America demand was weaker due to the economic crisis, but
prices were slightly higher.

In China demand for SC paper was considerably weaker due to customers switching
to LWC paper, which cost much less than a year ago, and newsprint.

Compared with Q2/2009
In Europe demand for coated and uncoated grades began to improve, mainly due to
the catalogue season. Prices were under pressure and declined in Europe and
overseas markets.

In Latin America demand strengthened slightly with the improving economic
outlook and stabilisation of customer inventories. Prices declined due to the
appreciation of the Brazilian currency.

In China demand for SC paper was seasonally stronger but prices were stable.

Fine Paper
——————————————————————————–
| EUR | Q3/ | Q2/ | Q3/ | 2008 | Q1-Q3 | Q1-Q3 | Chang | Chang | Chang |
| million | 09 | 09 | 08 | | /09 | /08 | e % | e % | e % |
| | | | | | | | Q3/09 | Q3/09 | Q1-Q3 |
| | | | | | | | -Q3/0 | -Q2/0 | /09- |
| | | | | | | | 8 | 9 | Q1-Q3 |
| | | | | | | | | | /08 |
——————————————————————————–
| Sales | 449 | 450 | 543 | 2 | 1 | 1 | -17.3 | -0.2 | -18.1 |
| | .6 | .4 | .9 | 111. | 331.9 | 626.9 | | | |
| | | | | 7 | | | | | |
——————————————————————————–
| EBITDA* | 42. | 25. | 69. | 219. | 89.8 | 200.3 | -39.4 | 66.7 | -55.2 |
| | 0 | 2 | 3 | 8 | | | | | |
——————————————————————————–
| Operating | 20. | -4. | 33. | 80.4 | 10.6 | 90.1 | -38.4 | n/m | -88.2 |
| profit/loss | 4 | 1 | 1 | | | | | | |
| * | | | | | | | | | |
——————————————————————————–
| % of sales | 4.5 | -0. | 6.1 | 3.8 | 0.8 | 5.5 | -26.2 | n/m | -85.5 |
| | | 9 | | | | | | | |
——————————————————————————–
| ROOC, %** | 7.3 | -1. | 7.5 | 5.3 | 1.2 | 7.0 | -2.7 | n/m | -82.9 |
| | | 3 | | | | | | | |
——————————————————————————–
| Deliveries, | 616 | 638 | 694 | 2 | 1 844 | 2 108 | -11.2 | -3.4 | -12.5 |
| 1 000 t | | | | 730 | | | | | |
——————————————————————————–
| Production, | 639 | 625 | 706 | 2 | 1 855 | 2 096 | -9.5 | 2.2 | -11.5 |
| 1 000 t | | | | 707 | | | | | |
——————————————————————————–
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital

Fine paper sales were EUR 449.6 million, down 17% on the third quarter of 2008
due to lower sales prices and volumes. Operating profit was EUR 20.4 million,
down 38% on the third quarter of 2008, despite lower variable and fixed costs
and lower depreciation.

Stora Enso has concluded the co-determination negotiations concerning permanent
shutdown of paper machine (PM) 8 at Imatra Mills in Finland due to the
significant decrease in demand for uncoated fine paper and resultant
overcapacity. The machine will be permanently shut down at the end of the first
quarter of 2010. The shutdown of PM 8 will reduce fine paper annual production
capacity by 210 000 tonnes.

The annual maintenance stoppage at Nymölla Mill will have negative impact on
Fine Paper fourth quarter operating profit.

Markets
Compared with Q3/2008
In Europe demand for coated fine paper was clearly weaker than a year ago due to
lower advertising spending. Demand for uncoated fine paper was much weaker due
to the economic slowdown. Coated fine paper prices were unchanged but uncoated
fine paper prices were lower than a year ago. Industry inventories were lower in
both grades.

In China coated fine paper demand was stronger but prices remained lower than a
year ago.

Compared with Q2/2009
In Europe coated fine paper demand strengthened while industry inventories
decreased slightly. Uncoated fine paper demand weakened seasonally but industry
inventories were stable. Coated and uncoated fine paper prices declined.

In China coated fine paper demand improved and prices continued to rise.

Consumer Board
——————————————————————————–
| EUR | Q3/ | Q2/ | Q3/ | 2008 | Q1-Q3 | Q1-Q3 | Chang | Chang | Chang |
| million | 09 | 09 | 08 | | /09 | /08 | e % | e % | e % |
| | | | | | | | Q3/09 | Q3/09 | Q1-Q3 |
| | | | | | | | -Q3/0 | -Q2/0 | /09- |
| | | | | | | | 8 | 9 | Q1-Q3 |
| | | | | | | | | | /08 |
——————————————————————————–
| Sales | 470 | 460 | 563 | 2 | 1 | 1 | -16.5 | 2.3 | -19.4 |
| | .7 | .3 | .9 | 231. | 390.9 | 725.6 | | | |
| | | | | 9 | | | | | |
——————————————————————————–
| EBITDA* | 93. | 71. | 71. | 242. | 210.2 | 210.4 | 30.5 | 30.3 | -0.1 |
| | 7 | 9 | 8 | 0 | | | | | |
——————————————————————————–
| Operating | 64. | 41. | 37. | 107. | 122.0 | 103.0 | 73.1 | 56.0 | 18.4 |
| profit* | 9 | 6 | 5 | 3 | | | | | |
——————————————————————————–
| % of sales | 13. | 9.0 | 6.7 | 4.8 | 8.8 | 6.0 | 106.0 | 53.3 | 46.7 |
| | 8 | | | | | | | | |
——————————————————————————–
| ROOC, %** | 21. | 13. | 9.6 | 7.2 | 13.1 | 8.7 | 121.9 | 57.8 | 50.6 |
| | 3 | 5 | | | | | | | |
——————————————————————————–
| Deliveries, | 567 | 545 | 617 | 2 | 1 641 | 1 896 | -8.1 | 4.0 | -13.4 |
| 1 000 t | | | | 442 | | | | | |
——————————————————————————–
| Production, | 589 | 551 | 625 | 2 | 1 649 | 1 911 | -5.8 | 6.9 | -13.7 |
| 1 000 t | | | | 437 | | | | | |
——————————————————————————–

* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital

Consumer board sales were EUR 470.7 million, down 17% on the third quarter of
2008 mainly due to the temporary shutdown of Enocell Pulp Mill and the permanent
closure of Baienfurt Board Mill. Operating profit was EUR 64.9 million, up 73%
on the third quarter of 2008 mainly due to lower costs and higher prices.

Consumer Board’s results are expected to be substantially down in the fourth
quarter of 2009 due to seasonal slowdown and maintenance stoppages at Skoghall
and Imatra mills during the quarter. In addition, Imatra board machine 4 will
have a major quality and productivity upgrade in November.

Markets
Compared with Q3/2008
Demand for consumer board was weaker than a year ago, but prices were generally
higher.

Compared with Q2/2009
Demand for consumer board strengthened and prices were largely unchanged.

Industrial Packaging
——————————————————————————–
| EUR million | Q3/ | Q2/ | Q3/ | 200 | Q1- | Q1- | Chan | Chan | Chan |
| | 09 | 09 | 08 | 8 | Q3/ | Q3/ | ge % | ge % | ge % |
| | | | | | 09 | 08 | Q3/0 | Q3/0 | Q1-Q |
| | | | | | | | 9-Q3 | 9-Q2 | 3/09 |
| | | | | | | | /08 | /09 | – |
| | | | | | | | | | Q1-Q |
| | | | | | | | | | 3/08 |
——————————————————————————–
| Sales | 203 | 194 | 273 | 1 | 594 | 834 | -25. | 5.0 | -28. |
| | .7 | .0 | .1 | 076 | .9 | .0 | 4 | | 7 |
| | | | | .5 | | | | | |
——————————————————————————–
| EBITDA* | 22. | 12. | 35. | 132 | 50. | 112 | -36. | 74.4 | -55. |
| | 5 | 9 | 4 | .7 | 6 | .5 | 4 | | 0 |
——————————————————————————–
| Operating profit* | 10. | 0.9 | 20. | 73. | 14. | 67. | -48. | n/m | -78. |
| | 3 | | 0 | 9 | 7 | 7 | 5 | | 3 |
——————————————————————————–
| % of sales | 5.1 | 0.5 | 7.3 | 6.9 | 2.5 | 8.1 | -30. | n/m | -69. |
| | | | | | | | 1 | | 1 |
——————————————————————————–
| ROOC, %** | 7.2 | 0.6 | 10. | 11. | 3.3 | 12. | -33. | n/m | -73. |
| | | | 8 | 2 | | 6 | 3 | | 8 |
——————————————————————————–
| Paper and board | 217 | 195 | 260 | 1 | 603 | 779 | -16. | 11.3 | -22. |
| deliveries, 1 000 t | | | | 008 | | | 5 | | 6 |
——————————————————————————–
| Paper and board | 216 | 181 | 271 | 1 | 586 | 802 | -20. | 19.3 | -26. |
| production, 1 000 t | | | | 020 | | | 3 | | 9 |
——————————————————————————–
| Corrugated | 245 | 238 | 269 | 1 | 711 | 817 | -8.9 | 2.9 | -13. |
| packaging | | | | 071 | | | | | 0 |
| deliveries, million | | | | | | | | | |
| m2 | | | | | | | | | |
——————————————————————————–
| Corrugated | 239 | 239 | 271 | 1 | 704 | 814 | -11. | 0.0 | -13. |
| packaging | | | | 066 | | | 8 | | 5 |
| production, million | | | | | | | | | |
| m2 | | | | | | | | | |
——————————————————————————–
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital

Industrial packaging sales were EUR 203.7 million, down 25% on the third quarter
of 2008 due to lower prices and volumes in all businesses. Operating profit was
EUR 10.3 million, down 49% on the third quarter of 2008 as lower volumes and
prices outweighed the benefits of lower costs.

Markets
Compared with Q3/2008
Demand for industrial packaging grades continued to be clearly weaker than a
year earlier and prices were lower.

Compared with Q2/2009
Demand improved by seasonal factors. Prices in general were lower but RCP-based
containerboard prices improved towards the end of the quarter.

Wood Products
——————————————————————————–
| EUR | Q3/ | Q2/ | Q3/0 | 2008 | Q1-Q | Q1-Q | Chang | Chang | Chang |
| million | 09 | 09 | 8 | | 3/09 | 3/08 | e % | e % | e % |
| | | | | | | | Q3/09 | Q3/09 | Q1-Q3 |
| | | | | | | | -Q3/0 | -Q2/0 | /09- |
| | | | | | | | 8 | 9 | Q1-Q3 |
| | | | | | | | | | /08 |
——————————————————————————–
| Sales | 306 | 315 | 366. | 1 | 894. | 1 | -16.2 | -2.8 | -22.5 |
| | .9 | .8 | 2 | 503.3 | 7 | 154. | | | |
| | | | | | | 6 | | | |
——————————————————————————–
| EBITDA* | 17. | -1. | -2.0 | -19.4 | 1.7 | -10. | n/m | n/m | 115.6 |
| | 1 | 1 | | | | 9 | | | |
——————————————————————————–
| Operating | 9.4 | -8. | -14. | -67.5 | -23. | -48. | 165.7 | 208.0 | 52.7 |
| profit/loss | | 7 | 3 | | 0 | 6 | | | |
| * | | | | | | | | | |
——————————————————————————–
| % of sales | 3.1 | -2. | -3.9 | -4.5 | -2.6 | -4.2 | 179.5 | 210.7 | 38.1 |
| | | 8 | | | | | | | |
——————————————————————————–
| ROOC, %** | 6.4 | -5. | -7.5 | -9.8 | -5.1 | -8.6 | 185.3 | 208.5 | 40.7 |
| | | 9 | | | | | | | |
——————————————————————————–
| Deliveries, | 1 | 1 | 1 | 5 893 | 3 | 4 | -17.4 | -8.5 | -19.4 |
| 1 000 m3 | 190 | 301 | 441 | | 604 | 471 | | | |
——————————————————————————–
* Excluding non-recurring items ** ROOC = 100% x Operating profit/Operating
capital

Wood product sales were EUR 306.9 million, down 16% on the third quarter of 2008
due to lower deliveries. Operating profit was EUR 9.4 million, up 166% on the
third quarter of 2008 due to lower raw material and fixed costs.

Markets
Compared with Q3/2008
Demand was weaker than year ago, reflecting reduced construction activity in
most markets. After bottoming out in the first quarter of 2009, prices recovered
to reach the levels of a year earlier in the third quarter due to the improved
supply and demand balance.

Compared with Q2/2009
With seasonal improvement in demand and a reasonable supply and demand balance,
the order inflow was good and prices rose.

Financials

Basis of Preparation
This unaudited interim financial report has been prepared in accordance with the
accounting policies set out in International Accounting Standard 34 on Interim
Financial Reporting and in the Group’s Annual Report for 2008, except for the
effects of the adoption of the standards described below:

IFRS 8 Operating Segments
The Group’s reportable segments remain unchanged from those reported in previous
interim reports. The adoption of this standard has had no impact on the reported
results or financial position of the Group.

IAS 1 (revised 2007) Presentation of Financial Statements
The revised standard has introduced a number of terminology changes and revised
titles for the primary statements, however the adoption of this standard has had
no impact on the reported results or financial position of the Group.

Discontinued Operations
The divestment of the Merchants segment in 2008 has been accounted for as a
discontinued operation. The income statements have been re-presented to disclose
the results from discontinued operations separately, but the Statement of
Financial Position and Statement of Cash Flows are presented as previously
reported.

Held for Sale
On 1 October 2009 the Group contributed 100% of its shares in Stora Enso Uruguay
S.A. to a newly established joint-venture company. As the Group no longer
controls this subsidiary, its assets and liabilities have been reclassified as
‘Held for Sale’ in accordance with IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations.
Condensed Consolidated Income Statement
——————————————————————————–
| EUR million | Q3/ | Q2/ | Q3/0 | Q1-Q | Q1-Q | 2008 | Chan | Chan | Chan |
| | 09 | 09 | 8 | 3/09 | 3/08 | | ge % | ge % | ge % |
| | | | | | | | Q3/0 | Q3/0 | Q1-Q |
| | | | | | | | 9-Q3 | 9-Q2 | 3/09 |
| | | | | | | | /08 | /09 | – |
| | | | | | | | | | Q1-Q |
| | | | | | | | | | 3/08 |
——————————————————————————–
| Continuing | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Sales | 2 | 2 | 2 | 6 | 8 | 11 | -18. | 2.1 | -22. |
| | 231 | 184 | 722. | 546. | 426. | 028. | 1 | | 3 |
| | .0 | .8 | 7 | 3 | 3 | 8 | | | |
——————————————————————————–
| Other operating | 30. | 31. | 23.8 | 113. | 68.7 | 120. | 29.0 | -2.2 | 65.8 |
| income | 7 | 4 | | 9 | | 2 | | | |
——————————————————————————–
| Materials and | -1 | -1 | -1 | -4 | -5 | -6 | 18.0 | -3.0 | 20.0 |
| services | 403 | 363 | 712. | 138. | 174. | 905. | | | |
| | .7 | .4 | 1 | 7 | 6 | 0 | | | |
——————————————————————————–
| Freight and | -20 | -19 | -292 | -615 | -861 | -1 | 29.1 | -5.2 | 28.6 |
| sales | 7.2 | 6.9 | .4 | .2 | .1 | 127. | | | |
| commissions | | | | | | 1 | | | |
——————————————————————————–
| Personnel | -29 | -32 | -364 | -999 | -1 | -1 | 18.2 | 8.4 | 21.1 |
| expenses | 8.1 | 5.6 | .5 | .7 | 266. | 669. | | | |
| | | | | | 9 | 1 | | | |
——————————————————————————–
| Other operating | -15 | -40 | -223 | -671 | -530 | -752 | 30.2 | 61.1 | -26. |
| expenses | 5.9 | 1.1 | .2 | .7 | .4 | .7 | | | 6 |
——————————————————————————–
| Share of | 8.8 | 6.0 | 1.6 | 34.2 | 37.9 | 0.7 | n/m | 46.7 | -9.8 |
| results of | | | | | | | | | |
| associated | | | | | | | | | |
| companies | | | | | | | | | |
——————————————————————————–
| Depreciation | -70 | -14 | -294 | -982 | -642 | -1 | -140 | n/m | -52. |
| and impairment | 8.2 | 4.6 | .6 | .0 | .3 | 422. | .4 | | 9 |
| | | | | | | 4 | | | |
——————————————————————————–
| Operating | -50 | -20 | -138 | -712 | 57.6 | -726 | n/m | -140 | n/m |
| Loss/Profit | 2.6 | 9.4 | .7 | .9 | | .6 | | .0 | |
——————————————————————————–
| Net financial | -46 | -16 | -23. | -254 | -105 | -167 | -100 | 71.4 | -140 |
| items | .1 | 1.2 | 0 | .5 | .8 | .2 | .4 | | .5 |
——————————————————————————–
| Loss before Tax | -54 | -37 | -161 | -967 | -48. | -893 | -239 | -48. | n/m |
| | 8.7 | 0.6 | .7 | .4 | 2 | .8 | .3 | 1 | |
——————————————————————————–
| Income tax | 29. | 2.3 | 42.6 | 43.3 | 23.8 | 214. | -31. | n/m | 81.9 |
| | 0 | | | | | 8 | 9 | | |
——————————————————————————–
| Net Loss for | -51 | -36 | -119 | -924 | -24. | -679 | n/m | -41. | n/m |
| the Period from | 9.7 | 8.3 | .1 | .1 | 4 | .0 | | 1 | |
| Continuing | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
——————————————————————————–
| Discontinued | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Profit after | – | – | 0.9 | – | 4.2 | 4.3 | -100 | n/a | -100 |
| tax for the | | | | | | | .0 | | .0 |
| period from | | | | | | | | | |
| discontinued | | | | | | | | | |
| operations | | | | | | | | | |
——————————————————————————–
——————————————————————————–
| Net Loss for | -51 | -36 | -118 | -924 | -20. | -674 | n/m | -41. | n/m |
| the Period | 9.7 | 8.3 | .2 | .1 | 2 | .7 | | 1 | |
——————————————————————————–
——————————————————————————–
| Attributable | | | | | | | | | |
| to: | | | | | | | | | |
——————————————————————————–
| Owners of the | -51 | -36 | -118 | -925 | -24. | -673 | n/m | -41. | n/m |
| Parent | 9.7 | 7.9 | .7 | .8 | 9 | .4 | | 3 | |
——————————————————————————–
| Non-controlling | 0.0 | -0. | 0.5 | 1.7 | 4.7 | -1.3 | -100 | 100. | -63. |
| interests | | 4 | | | | | .0 | 0 | 8 |
——————————————————————————–
| | -51 | -36 | -118 | -924 | -20. | -674 | n/m | -41. | n/m |
| | 9.7 | 8.3 | .2 | .1 | 2 | .7 | | 1 | |
——————————————————————————–
——————————————————————————–
| Earnings per | | | | | | | | | |
| Share | | | | | | | | | |
——————————————————————————–
| Basic earnings | -0. | -0. | -0.1 | -1.1 | -0.0 | -0.8 | n/m | -43. | n/m |
| per share, EUR | 66 | 46 | 5 | 7 | 3 | 5 | | 5 | |
——————————————————————————–
| Diluted | -0. | -0. | -0.1 | -1.1 | -0.0 | -0.8 | n/m | -43. | n/m |
| earnings per | 66 | 46 | 5 | 7 | 3 | 5 | | 5 | |
| share, EUR | | | | | | | | | |
——————————————————————————–
| Earnings per | | | | | | | | | |
| Share from | | | | | | | | | |
| Continuing | | | | | | | | | |
| Operations | | | | | | | | | |
——————————————————————————–
| Basic earnings | -0. | -0. | -0.1 | -1.1 | -0.0 | -0.8 | n/m | -43. | n/m |
| per share, EUR | 66 | 46 | 6 | 7 | 4 | 6 | | 5 | |
——————————————————————————–
| Diluted | -0. | -0. | -0.1 | -1.1 | -0.0 | -0.8 | n/m | -43. | n/m |
| earnings per | 66 | 46 | 6 | 7 | 4 | 6 | | 5 | |
| share, EUR | | | | | | | | | |
——————————————————————————–

Consolidated Statement of Comprehensive Income
——————————————————————————–
| EUR million | Q3/09 | Q2/09 | Q3/08 | Q1-Q3 | Q1-Q3/ | 2008 |
| | | | | /09 | 08 | |
——————————————————————————–
——————————————————————————–
| Net loss for the period | -519. | -368. | -118. | -924. | -20.2 | -674.7 |
| | 7 | 3 | 2 | 1 | | |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Other Comprehensive Income | | | | | | |
——————————————————————————–
| Actuarial gains & losses | -5.5 | – | – | -5.5 | – | -12.7 |
| on defined benefit pension | | | | | | |
| plans | | | | | | |
——————————————————————————–
| Buy-out of minority | – | – | -0.7 | – | -0.7 | -0.7 |
| interests | | | | | | |
——————————————————————————–
| Asset revaluation on step | – | 3.9 | 0.0 | 3.9 | – | – |
| acquisition | | | | | | |
——————————————————————————–
| Available for sale | -45.6 | 334.4 | -377. | 105.3 | 7.9 | -398.0 |
| financial assets | | | 7 | | | |
——————————————————————————–
| Currency and commodity | 98.4 | 103.3 | -116. | 204.0 | -74.6 | -312.2 |
| hedges | | | 7 | | | |
——————————————————————————–
| Share of other | 1.2 | 2.2 | -5.4 | -9.2 | 1.5 | -9.5 |
| comprehensive income of | | | | | | |
| associates | | | | | | |
——————————————————————————–
| Currency translation | 101.8 | 85.0 | -158. | 205.3 | -128.8 | -310.2 |
| movements on equity net | | | 5 | | | |
| investments (CTA) | | | | | | |
——————————————————————————–
| Net investment hedges | -9.1 | 21.0 | 81.4 | 16.4 | 87.5 | 0.6 |
——————————————————————————–
| Items From Equity | 13.0 | -13.0 | 10.6 | – | – | -32.4 |
| Recognised in Income | | | | | | |
| Statement | | | | | | |
——————————————————————————–
| Income tax relating to | -27.5 | -32.3 | 14.4 | -63.8 | 3.3 | 89.7 |
| components of other | | | | | | |
| comprehensive income | | | | | | |
——————————————————————————–
| Other Comprehensive | 126.7 | 504.5 | -552. | 456.4 | -103.9 | -985.4 |
| Income, net of tax | | | 6 | | | |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Total Comprehensive Income | -393. | 136.2 | -670. | -467. | -124.1 | -1 |
| | 0 | | 8 | 7 | | 660.1 |
——————————————————————————–
| | | | | | | |
——————————————————————————–
| Total Comprehensive Income | | | | | | |
| Attributable to: | | | | | | |
——————————————————————————–
| Owners of the Parent | -393. | 136.5 | -670. | -468. | -126.2 | -1 |
| | 0 | | 0 | 2 | | 644.7 |
——————————————————————————–
| Non-controlling interests | 0.0 | -0.3 | -0.8 | 0.5 | 2.1 | -15.4 |
——————————————————————————–
| | -393. | 136.2 | -670. | -467. | -124.1 | -1 |
| | 0 | | 8 | 7 | | 660.1 |
——————————————————————————–



Condensed Consolidated Statement of Cash Flows
——————————————————————————–
| EUR million | Q1-Q3/09 | Q1-Q3/08 |
——————————————————————————–
| Cash Flow from Operating Activities | | |
——————————————————————————–
| Operating loss/profit | -712.9 | 69.4 |
——————————————————————————–
| Hedging result from OCI | 213.6 | -3.7 |
——————————————————————————–
| Adjustments for non-cash items | 1 160.9 | 629.0 |
——————————————————————————–
| Change in net working capital | 352.2 | -244.0 |
——————————————————————————–
| Cash Flow Generated by Operations | 1 013.8 | 450.7 |
——————————————————————————–
| Net financials items paid | -271.1 | -128.3 |
——————————————————————————–
| Income taxes paid/received, net | -4.5 | -22.2 |
——————————————————————————–
| Net Cash Provided /Used by Operating | 738.2 | 300.2 |
| Activities | | |
——————————————————————————–
——————————————————————————–
| Cash Flow from Investing Activities | | |
——————————————————————————–
| Acquisitions of subsidiaries | -8.3 | -4.2 |
——————————————————————————–
| Acquisitions of associated companies | -0.5 | -52.4 |
——————————————————————————–
| Proceeds from sale of fixed assets and shares | 84.6 | 208.5 |
——————————————————————————–
| Capital expenditure | -321.9 | -483.5 |
——————————————————————————–
| Proceeds from (payment of) the non-current | -33.5 | -17.3 |
| receivables, net | | |
——————————————————————————–
| Net Cash Used in Investing Activities | -279.6 | -348.9 |
——————————————————————————–
——————————————————————————–
| Cash Flow from Financing Activities | | |
——————————————————————————–
| Proceeds from issue of new long-term debt | 225.2 | 278.0 |
——————————————————————————–
| Long-term debt, payments | -164.9 | -371.1 |
——————————————————————————–
| Change in short-term borrowings | -171.2 | -30.6 |
——————————————————————————–
| Dividends and capital repayments paid | -157.7 | -354.9 |
——————————————————————————–
| Equity repayment and dividend to | -7.5 | -2.7 |
| non-controlling interests | | |
——————————————————————————–
| Net Cash Used in Financing Activities | -276.1 | -481.3 |
——————————————————————————–
——————————————————————————–
| Net Increase/Decrease in Cash and Cash | 182.5 | -530.0 |
| Equivalents | | |
——————————————————————————–
| Cash and bank in disposed companies | – | -8.8 |
——————————————————————————–
| Cash and bank in acquired companies | 4.3 | – |
——————————————————————————–
| Translation adjustment | -22.6 | 51.5 |
——————————————————————————–
| Net cash and cash equivalents at the | 372.6 | 879.3 |
| beginning of period | | |
——————————————————————————–
| Net Cash and Cash Equivalents at Period End | 536.8 | 392.0 |
——————————————————————————–
——————————————————————————–
| Cash and Cash Equivalents at Period End | 548.3 | 398.5 |
——————————————————————————–
| Bank Overdrafts at Period End | -11.5 | -6.5 |
——————————————————————————–
| Net Cash and Cash Equivalents at Period End | 536.8 | 392.0 |
——————————————————————————–
——————————————————————————–
——————————————————————————–
| Acquisitions of Subsidiary Companies | | |
——————————————————————————–
| Cash and cash equivalents | 4.4 | – |
——————————————————————————–
| Fixed assets | 18.4 | 4.2 |
——————————————————————————–
| Working capital | 20.4 | 0.2 |
——————————————————————————–
| Tax assets and liabilities | 15.1 | -0.5 |
——————————————————————————–
| Interest-bearing liabilities | -44.1 | -1.2 |
——————————————————————————–
| Minority interests | -2.0 | 1.5 |
——————————————————————————–
| Fair Value of Net Assets | 12.2 | 4.2 |
——————————————————————————–
| Gain from step acquisition realised directly | -3.9 | – |
| in equity | | |
——————————————————————————–
| Total Purchase Consideration | 8.3 | 4.2 |
——————————————————————————–
——————————————————————————–
| Disposal of Subsidiary Companies | | |
——————————————————————————–
| Cash and cash equivalents | – | 8.8 |
——————————————————————————–
| Fixed assets | – | 294.7 |
——————————————————————————–
| Working capital | 0.1 | 172.5 |
——————————————————————————–
| Interest-bearing liabilities | – | -230.4 |
——————————————————————————–
| Tax liabilities | – | -25.9 |
——————————————————————————–
| Net Assets in Divested Companies | 0.1 | 219.7 |
——————————————————————————–
| Income Statement capital gain | – | 1.5 |
——————————————————————————–
| Total Disposal Consideration Received in Cash | 0.1 | 221.2 |
| and Kind | | |
——————————————————————————–


Property, Plant and Equipment, Intangible Assets and Goodwill
——————————————————————————–
| EUR million | Q1-Q3/09 | Q1-Q3/08 | 2008 |
——————————————————————————–
| Carrying value at 1 January | 5 899.4 | 7 232.4 | 7 232.4 |
——————————————————————————–
| Acquisition of subsidiary companies | 18.4 | 4.2 | 3.9 |
——————————————————————————–
| Capital expenditure | 293.8 | 444.8 | 648.2 |
——————————————————————————–
| Additions in biological assets | 28.1 | 38.6 | 58.7 |
——————————————————————————–
| Change in emission rights | -27.9 | 75.9 | 61.8 |
——————————————————————————–
| Disposals | -26.7 | -50.4 | -54.7 |
——————————————————————————–
| Disposals of subsidiary companies | – | -294.7 | -281.8 |
——————————————————————————–
| Depreciation and impairment, | -982.0 | -642.3 | -1 422.4 |
| continuing operations | | | |
——————————————————————————–
| Depreciation and impairment, | – | -27.8 | -46.1 |
| discontinued operations | | | |
——————————————————————————–
| Held for sale | -98.3 | – | – |
——————————————————————————–
| Translation difference and other | 108.7 | -48.0 | -300.6 |
——————————————————————————–
| Balance Sheet Total | 5 213.5 | 6 732.7 | 5 899.4 |
——————————————————————————–


Borrowings
——————————————————————————–
| EUR million | 30 Sep 09 | 30 Sep 08 | 31 Dec 08 |
——————————————————————————–
| Non-current borrowings | 2 453.5 | 3 404.4 | 3 007.8 |
——————————————————————————–
| Current borrowings | 1 414.4 | 585.5 | 1 068.3 |
——————————————————————————–
| | 3 867.9 | 3 989.9 | 4 076.1 |
——————————————————————————–
——————————————————————————–
| | Q1-Q3/09 | Q1-Q3/2008 | 2008 |
——————————————————————————–
| Carrying value at 1 January | 4 076.1 | 4 441.4 | 4 441.4 |
——————————————————————————–
| Debt acquired with new subsidiaries | 44.1 | 1.2 | 1.0 |
——————————————————————————–
| Debt disposed with sold | – | -230.4 | -230.4 |
| subsidiaries | | | |
——————————————————————————–
| Payments of borrowings (net) | -316.2 | -220.3 | -59.7 |
——————————————————————————–
| Translation difference and other | 63.9 | -2.0 | -76.2 |
——————————————————————————–
| Total Borrowings | 3 867.9 | 3 989.9 | 4 076.1 |
——————————————————————————–


Condensed Consolidated Statement of Financial Position
——————————————————————————–
| EUR million | | 30 Sep 09 | 31 Dec 08 | 30 Sep 08 |
——————————————————————————–
——————————————————————————–
| Assets | | | | |
——————————————————————————–
——————————————————————————–
| Fixed Assets and Other | | | | |
| Non-current Investments | | | | |
——————————————————————————–
| Fixed assets | O | 5 031.0 | 5 698.8 | 6 536.7 |
——————————————————————————–
| Biological assets | O | 143.4 | 133.6 | 114.9 |
——————————————————————————–
| Emission rights | O | 39.1 | 67.0 | 81.1 |
——————————————————————————–
| Investment in associated | O | 1 177.3 | 1 042.5 | 1 177.1 |
| companies | | | | |
——————————————————————————–
| Available-for-sale: Listed | I | 68.7 | 154.9 | 174.2 |
| securities | | | | |
——————————————————————————–
| Available-for-sale: Unlisted | O | 723.5 | 954.3 | 1 312.1 |
| shares | | | | |
——————————————————————————–
| Non-current loan receivables | I | 169.1 | 130.3 | 140.5 |
——————————————————————————–
| Deferred tax assets | T | 187.9 | 74.5 | 113.9 |
——————————————————————————–
| Other non-current assets | O | 22.7 | 16.2 | 28.8 |
——————————————————————————–
| | | 7 562.7 | 8 272.1 | 9 679.3 |
——————————————————————————–
——————————————————————————–
| Current Assets | | | | |
——————————————————————————–
| Inventories | O | 1 429.9 | 1 693.6 | 1 910.5 |
——————————————————————————–
| Tax receivables | T | 9.7 | 25.0 | 51.6 |
——————————————————————————–
| Operative receivables | O | 1 447.2 | 1 583.2 | 1 841.3 |
——————————————————————————–
| Interest-bearing receivables | I | 214.1 | 251.1 | 287.2 |
——————————————————————————–
| Cash and cash equivalents | I | 548.3 | 415.8 | 398.5 |
——————————————————————————–
| | | 3 649.2 | 3 968.7 | 4 489.1 |
——————————————————————————–
——————————————————————————–
| Asset of disposal group | | 103.0 | – | – |
| classified as held for sale | | | | |
——————————————————————————–
| | | 3 752.2 | 3 968.7 | 4 489.1 |
——————————————————————————–
——————————————————————————–
| Total Assets | | 11 314.9 | 12 240.8 | 14 168.4 |
——————————————————————————–
——————————————————————————–
| Equity and Liabilities | | | | |
——————————————————————————–
——————————————————————————–
| Owners of the Parent | | 4 968.1 | 5 594.0 | 7 112.5 |
——————————————————————————–
| Non-controlling Interests | | 57.0 | 56.5 | 74.0 |
——————————————————————————–
| Total Equity | | 5 025.1 | 5 650.5 | 7 186.5 |
——————————————————————————–
——————————————————————————–
| Non-current Liabilities | | | | |
——————————————————————————–
| Post-employment benefit | O | 307.4 | 299.0 | 305.7 |
| provisions | | | | |
——————————————————————————–
| Other provisions | O | 193.8 | 202.3 | 127.8 |
——————————————————————————–
| Deferred tax liabilities | T | 363.6 | 277.5 | 599.6 |
——————————————————————————–
| Non-current debt | I | 2 453.5 | 3 007.8 | 3 404.4 |
——————————————————————————–
| Other non-current operative | O | 21.7 | 28.5 | 27.6 |
| liabilities | | | | |
——————————————————————————–
| | | 3 340.0 | 3 815.1 | 4 465.1 |
——————————————————————————–
| Current Liabilities | | | | |
——————————————————————————–
| Current portion of long-term | I | 998.2 | 437.4 | 94.2 |
| debt | | | | |
——————————————————————————–
| Interest-bearing liabilities | I | 416.2 | 630.9 | 491.3 |
——————————————————————————–
| Operative liabilities | O | 1 406.1 | 1 602.1 | 1 869.3 |
——————————————————————————–
| Tax liabilities | T | 126.5 | 104.8 | 62.0 |
——————————————————————————–
| | | 2 947.0 | 2 775.2 | 2 516.8 |
——————————————————————————–
——————————————————————————–
| Liability directly associated | | 2.8 | – | – |
| with the assets classified as | | | | |
| held for sale | | | | |
——————————————————————————–
| | | 2 949.8 | 2 775.2 | 2 516.8 |
——————————————————————————–
——————————————————————————–
——————————————————————————–
| Total Liabilities | | 6 289.8 | 6 590.3 | 6 981.9 |
——————————————————————————–
——————————————————————————–
| Total Equity and Liabilities | | 11 314.9 | 12 240.8 | 14 168.4 |
——————————————————————————–

Items designated with “O” comprise Operating Capital
Items designated with “I” comprise Interest-bearing Net Liabilities
Items designated with “T” comprise Net Tax Liabilities


Statement of Changes in Equity
——————————————————————————–
| EUR | S | Sh | In | Tr | Ste | Ava | Cur | Cur | CTA | Ret | Attr | Non | To |
| mil | h | ar | ve | ea | p | ila | ren | ren | & | ain | ibut | -co | ta |
| lio | a | e | st | su | Acq | ble | cy | cy | net | ed | able | ntr | l |
| n | r | Pr | ed | ry | uis | for | and | and | inv | Ear | to | oll | |
| | e | em | No | Sh | iti | sal | com | com | est | nin | owne | ing | |
| | C | iu | n- | ar | on | e | mod | mod | men | gs | rs | int | |
| | a | m | Re | es | Rev | fin | ity | ity | t | | of | ere | |
| | p | & | st | | alu | anc | hed | hed | hed | | the | sts | |
| | i | Re | ri | | ati | ial | ges | ges | ges | | pare | | |
| | t | se | ct | | on | ass | | of | | | nt | | |
| | a | rv | ed | | Sur | ets | | ass | | | | | |
| | l | e | Eq | | plu | | | oci | | | | | |
| | | Fu | ui | | s | | | ate | | | | | |
| | | nd | ty | | | | | s | | | | | |
| | | | Fu | | | | | | | | | | |
| | | | nd | | | | | | | | | | |
——————————————————————————–
| Bal | 1 | 2 | 0. | -1 | 0.0 | 899 | 62. | -1. | -11 | 3 | 7 | 71, | 7 |
| anc | 3 | 27 | 0 | 0. | | .1 | 4 | 1 | 5.6 | 140 | 593. | 9 | 66 |
| e | 4 | 6. | | 2 | | | | | | .4 | 6 | | 5, |
| at | 2 | 4 | | | | | | | | | | | 5 |
| 31 | . | | | | | | | | | | | | |
| Dec | 2 | | | | | | | | | | | | |
| emb | | | | | | | | | | | | | |
| er | | | | | | | | | | | | | |
| 200 | | | | | | | | | | | | | |
| 7 | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Pro | – | – | – | – | – | – | – | – | – | -24 | -24. | 4.7 | -2 |
| fit | | | | | | | | | | .9 | 9 | | 0. |
| for | | | | | | | | | | | | | 2 |
| the | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | |
| iod | | | | | | | | | | | | | |
——————————————————————————–
| Oth | – | – | – | – | – | 7.9 | -74 | 1.5 | -38 | -0. | -104 | -2. | -1 |
| er | | | | | | | .6 | | .7 | 7 | .6 | 6 | 07 |
| com | | | | | | | | | | | | | .2 |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
| bef | | | | | | | | | | | | | |
| ore | | | | | | | | | | | | | |
| tax | | | | | | | | | | | | | |
——————————————————————————–
| Inc | – | – | – | – | – | 5.8 | 20. | – | -22 | – | 3.3 | – | 3. |
| ome | | | | | | | 3 | | .8 | | | | 3 |
| tax | | | | | | | | | | | | | |
| rel | | | | | | | | | | | | | |
| ati | | | | | | | | | | | | | |
| ng | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| com | | | | | | | | | | | | | |
| pon | | | | | | | | | | | | | |
| ent | | | | | | | | | | | | | |
| s | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | |
| oth | | | | | | | | | | | | | |
| er | | | | | | | | | | | | | |
| com | | | | | | | | | | | | | |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Tot | – | – | – | – | – | 13. | -54 | 1.5 | -61 | -25 | -126 | 2.1 | -1 |
| al | | | | | | 7 | .3 | | .5 | .6 | .2 | | 24 |
| Com | | | | | | | | | | | | | .1 |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| Inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Div | – | – | – | – | – | 0.0 | 0.0 | 0.0 | 0.0 | -35 | -354 | 0.0 | -3 |
| ide | | | | | | | | | | 4.9 | .9 | | 54 |
| nd | | | | | | | | | | | | | .9 |
| (EU | | | | | | | | | | | | | |
| R | | | | | | | | | | | | | |
| 0.4 | | | | | | | | | | | | | |
| 5 | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | |
| sha | | | | | | | | | | | | | |
| re) | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Bal | 1 | 2 | 0. | -1 | 0.0 | 912 | 8.1 | 0.4 | -17 | 2 | 7 | 74. | 7 |
| anc | 3 | 27 | 0 | 0. | | .8 | | | 7.1 | 759 | 112. | 0 | 18 |
| e | 4 | 6. | | 2 | | | | | | .9 | 5 | | 6. |
| at | 2 | 4 | | | | | | | | | | | 5 |
| 30 | . | | | | | | | | | | | | |
| Sep | 2 | | | | | | | | | | | | |
| 200 | | | | | | | | | | | | | |
| 8 | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Los | – | – | – | – | – | – | – | – | – | -64 | -648 | -6. | -6 |
| s | | | | | | | | | | 8.5 | .5 | 0 | 54 |
| for | | | | | | | | | | | | | .5 |
| the | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | |
| iod | | | | | | | | | | | | | |
——————————————————————————–
| Oth | – | – | – | – | – | -40 | -23 | -10 | -28 | -12 | -956 | -11 | -9 |
| er | | | | | | 5.9 | 7.7 | .9 | 9.3 | .6 | .4 | .5 | 67 |
| com | | | | | | | | | | | | | .9 |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
| bef | | | | | | | | | | | | | |
| ore | | | | | | | | | | | | | |
| tax | | | | | | | | | | | | | |
——————————————————————————–
| Inc | – | – | – | – | – | 3.7 | 63. | – | 22. | -3. | 86.4 | – | 86 |
| ome | | | | | | | 5 | | 6 | 4 | | | .4 |
| tax | | | | | | | | | | | | | |
| rel | | | | | | | | | | | | | |
| ati | | | | | | | | | | | | | |
| ng | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| com | | | | | | | | | | | | | |
| pon | | | | | | | | | | | | | |
| ent | | | | | | | | | | | | | |
| s | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | |
| oth | | | | | | | | | | | | | |
| er | | | | | | | | | | | | | |
| com | | | | | | | | | | | | | |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Tot | – | – | – | – | – | -40 | -17 | -10 | -26 | -66 | -1 | -17 | -1 |
| al | | | | | | 2.2 | 4.2 | .9 | 6.7 | 4.5 | 518. | .5 | 53 |
| Com | | | | | | | | | | | 5 | | 6. |
| pre | | | | | | | | | | | | | 0 |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| Inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Bal | 1 | 2 | 0. | -1 | 0.0 | 510 | -16 | -10 | -44 | 2 | 5 | 56. | 5 |
| anc | 3 | 27 | 0 | 0. | | .6 | 6.1 | .5 | 3.8 | 095 | 594. | 5 | 65 |
| e | 4 | 6. | | 2 | | | | | | .4 | 0 | | 0. |
| at | 2 | 4 | | | | | | | | | | | 5 |
| 31 | . | | | | | | | | | | | | |
| Dec | 2 | | | | | | | | | | | | |
| emb | | | | | | | | | | | | | |
| er | | | | | | | | | | | | | |
| 200 | | | | | | | | | | | | | |
| 8 | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Los | – | – | – | – | – | – | – | – | – | -92 | -925 | 1.7 | -9 |
| s | | | | | | | | | | 5.8 | .8 | | 24 |
| for | | | | | | | | | | | | | .1 |
| the | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | |
| iod | | | | | | | | | | | | | |
——————————————————————————–
| Oth | – | – | – | – | 3.9 | 105 | 204 | -9. | 222 | -5. | 521. | -1. | 52 |
| er | | | | | | .3 | .0 | 2 | .9 | 5 | 4 | 2 | 0. |
| com | | | | | | | | | | | | | 2 |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
| bef | | | | | | | | | | | | | |
| ore | | | | | | | | | | | | | |
| tax | | | | | | | | | | | | | |
——————————————————————————–
| Inc | – | – | – | – | – | -6. | -53 | – | -4. | – | -63. | – | -6 |
| ome | | | | | | 1 | .4 | | 3 | | 8 | | 3. |
| tax | | | | | | | | | | | | | 8 |
| rel | | | | | | | | | | | | | |
| ati | | | | | | | | | | | | | |
| ng | | | | | | | | | | | | | |
| to | | | | | | | | | | | | | |
| com | | | | | | | | | | | | | |
| pon | | | | | | | | | | | | | |
| ent | | | | | | | | | | | | | |
| s | | | | | | | | | | | | | |
| of | | | | | | | | | | | | | |
| oth | | | | | | | | | | | | | |
| er | | | | | | | | | | | | | |
| com | | | | | | | | | | | | | |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Tot | 0 | 0. | 0. | 0. | 3.9 | 99. | 150 | -9. | 218 | -93 | -468 | 0.5 | -4 |
| al | . | 0 | 0 | 0 | | 2 | .6 | 2 | .6 | 1.3 | .2 | | 67 |
| Com | 0 | | | | | | | | | | | | .7 |
| pre | | | | | | | | | | | | | |
| hen | | | | | | | | | | | | | |
| siv | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| Inc | | | | | | | | | | | | | |
| ome | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Tra | – | -1 | 1 | – | – | – | – | – | – | – | 0.0 | – | 0. |
| nsf | | 92 | 92 | | | | | | | | | | 0 |
| er | | 7. | 7. | | | | | | | | | | |
| to | | 1 | 1 | | | | | | | | | | |
| dis | | | | | | | | | | | | | |
| tri | | | | | | | | | | | | | |
| but | | | | | | | | | | | | | |
| abl | | | | | | | | | | | | | |
| e | | | | | | | | | | | | | |
| res | | | | | | | | | | | | | |
| erv | | | | | | | | | | | | | |
| es | | | | | | | | | | | | | |
——————————————————————————–
| Ret | – | -1 | – | – | – | – | – | – | – | – | -157 | – | -1 |
| urn | | 57 | | | | | | | | | .7 | | 57 |
| of | | .7 | | | | | | | | | | | .7 |
| cap | | | | | | | | | | | | | |
| ita | | | | | | | | | | | | | |
| l | | | | | | | | | | | | | |
| (EU | | | | | | | | | | | | | |
| R | | | | | | | | | | | | | |
| 0.2 | | | | | | | | | | | | | |
| 0 | | | | | | | | | | | | | |
| per | | | | | | | | | | | | | |
| sha | | | | | | | | | | | | | |
| re) | | | | | | | | | | | | | |
——————————————————————————–
| | | | | | | | | | | | | | |
——————————————————————————–
| Bal | 1 | 19 | 1 | -1 | 3.9 | 609 | -15 | -19 | -22 | 1 | 4 | 57. | 5 |
| anc | 3 | 1. | 92 | 0. | | .8 | .5 | .7 | 5.2 | 164 | 968. | 0 | 02 |
| e | 4 | 6 | 7. | 2 | | | | | | .1 | 1 | | 5. |
| at | 2 | | 1 | | | | | | | | | | 1 |
| 30 | . | | | | | | | | | | | | |
| Sep | 2 | | | | | | | | | | | | |
| 200 | | | | | | | | | | | | | |
| 9 | | | | | | | | | | | | | |
——————————————————————————–

CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income


Commitments and Contingencies
——————————————————————————–
| EUR million | 30 Sep 09 | 31 Dec 08 | 30 Sep 08 |
——————————————————————————–
| On Own Behalf | | | |
——————————————————————————–
| Pledges given | 0.8 | 0.8 | 0.8 |
——————————————————————————–
| Mortgages | 46.2 | 62.0 | 85.3 |
——————————————————————————–
| On Behalf of Associated | | | |
| Companies | | | |
——————————————————————————–
| Guarantees | 185.9 | 180.5 | 203.5 |
——————————————————————————–
| On Behalf of Others | | | |
——————————————————————————–
| Guarantees | 123.5 | 156.3 | 162.1 |
——————————————————————————–
| Other Commitments, Own | | | |
——————————————————————————–
| Operating leases, in next 12 | 26.3 | 28.9 | 28.2 |
| months | | | |
——————————————————————————–
| Operating leases, after next 12 | 83.5 | 95.0 | 102.6 |
| months | | | |
——————————————————————————–
| Pension liabilities | 0.2 | 0.2 | 0.2 |
——————————————————————————–
| Other commitments | 36.8 | 40.4 | 26.0 |
——————————————————————————–
| Total | 503.2 | 564.1 | 608.7 |
——————————————————————————–
——————————————————————————–
| Pledges given | 0.8 | 0.8 | 0.8 |
——————————————————————————–
| Mortgages | 46.2 | 62.0 | 85.3 |
——————————————————————————–
| Guarantees | 309.4 | 336.8 | 365.6 |
——————————————————————————–
| Operating leases | 109.8 | 123.9 | 130.8 |
——————————————————————————–
| Pension liabilities | 0.2 | 0.2 | 0.2 |
——————————————————————————–
| Other commitments | 36.8 | 40.4 | 26.0 |
——————————————————————————–
| Total | 503.2 | 564.1 | 608.7 |
——————————————————————————–


Purchase Agreement Commitments
——————————————————————————–
| EUR million | Scheduled Contract Payments |
——————————————————————————–
| Type of Supply | Contract | Q4/09 | 2010-11 | 2012-13 | 2014+ |
| | Total | | | | |
——————————————————————————–
| | Fibre | 1 282.0 | 50.0 | 313.9 | 299.5 | 618.6 |
——————————————————————————–
| | Energy | 1 835.3 | 109.1 | 623.1 | 327.6 | 775.5 |
——————————————————————————–
| | Logistics | 488.1 | 17.0 | 128.1 | 98.6 | 244.4 |
——————————————————————————–
| | Other production | 659.4 | 44.5 | 134.6 | 71.0 | 409.3 |
| | costs | | | | | |
——————————————————————————–
| | | 4 264.8 | 220.6 | 1 199.7 | 796.7 | 2 047.8 |
——————————————————————————–
| Capital Expenditure | 119.8 | 25.3 | 94.5 | – | – |
——————————————————————————–
| Acquisitions – | 114.0 | 114.0 | – | – | – |
| Uruguay | | | | | |
——————————————————————————–
| Total Contractual | 4 498.6 | 359.9 | 1 294.2 | 796.7 | 2 047.8 |
| Commitments at 30 | | | | | |
| September 2009 | | | | | |
——————————————————————————–


Fair Values of Derivative Financial Instruments
——————————————————————————–
| EUR million | | 30 Sep | | | 31 Dec | 30 Sep |
| | | 09 | | | 08 | 08 |
——————————————————————————–
| | Positive | Negativ | Net | | Net | Net |
| | Fair | e | Fai | | Fair | Fair |
| | Values | Fair | r | | Values | Values |
| | | Values | Values | | | |
——————————————————————————–
| Interest rate | 248.9 | -42.4 | 206.5 | | 227.2 | 84.0 |
| swaps | | | | | | |
——————————————————————————–
| Interest rate | – | -29.9 | -29.9 | | -38.0 | -12.4 |
| options | | | | | | |
——————————————————————————–
| Forward contracts | 30.2 | -136.0 | -105.8 | | -73.9 | 40.9 |
——————————————————————————–
| Currency options | 44.8 | -12.3 | 32.5 | | -14.6 | -16.1 |
——————————————————————————–
| Commodity | 16.1 | -69.9 | -53.8 | | -90.7 | 78.1 |
| contracts | | | | | | |
——————————————————————————–
| Equity swaps | 4.7 | -19.3 | -14.6 | | -57.4 | -37.2 |
| (“TRS”) & equity | | | | | | |
| options | | | | | | |
——————————————————————————–
| Total | 344.7 | -309.8 | 34.9 | | -47.4 | 137.3 |
——————————————————————————–

Nominal Values of Derivative Financial Instruments
——————————————————————————–
| EUR million | 30 Sep 09 | 31 Dec 08 | 30 Sep 08 |
——————————————————————————–
| Interest Rate Derivatives | | | |
——————————————————————————–
| Interest rate swaps | | | |
——————————————————————————–
| Maturity under 1 year | 1 287.7 | 592.8 | 74.4 |
——————————————————————————–
| Maturity 2-5 years | 2 430.3 | 1 683.4 | 2 259.3 |
——————————————————————————–
| Maturity 6-10 years | 848.9 | 2 341.6 | 2 329.2 |
——————————————————————————–
| | 4 566.9 | 4 617.8 | 4 662.9 |
——————————————————————————–
| Interest rate options | 382.3 | 394.3 | 390.7 |
——————————————————————————–
| Total | 4 949.2 | 5 012.1 | 5 053.6 |
——————————————————————————–
——————————————————————————–
| Foreign Exchange Derivatives | | | |
——————————————————————————–
| Forward contracts | 2 716.8 | 3 049.4 | 3 297.0 |
——————————————————————————–
| Currency options | 1 768.1 | 1 438.9 | 1 583.8 |
——————————————————————————–
| Total | 4 484.9 | 4 488.3 | 4 880.8 |
——————————————————————————–
——————————————————————————–
| Commodity Derivatives | | | |
——————————————————————————–
| Commodity contracts | 435.8 | 604.6 | 507.3 |
——————————————————————————–
| Total | 435.8 | 604.6 | 507.3 |
——————————————————————————–
——————————————————————————–
| Total Return (Equity) Swaps | | | |
——————————————————————————–
| Equity swaps (“TRS”) | 104.7 | 158.2 | 158.2 |
——————————————————————————–
| Equity options | – | 22.0 | 21.9 |
——————————————————————————–
| Total | 104.7 | 180.2 | 180.1 |
——————————————————————————–

Sales by Segment
——————————————————————————–
| EUR million | Q3/09 | Q2/0 | Q1/0 | 2008 | Q4/08 | Q3/08 | Q2/08 | Q1/08 |
| | | 9 | 9 | | | | | |
——————————————————————————–
| Newsprint and | 330.0 | 327. | 308. | 1 | 414.0 | 405.2 | 389.0 | 386.5 |
| Book Paper | | 5 | 7 | 594.7 | | | | |
——————————————————————————–
| Magazine | 469.0 | 396. | 380. | 2 | 544.3 | 544.9 | 540.5 | 547.3 |
| Paper | | 0 | 8 | 177.0 | | | | |
——————————————————————————–
| Fine Paper | 449.6 | 450. | 431. | 2 | 484.8 | 543.9 | 537.8 | 545.2 |
| | | 4 | 9 | 111.7 | | | | |
——————————————————————————–
| Consumer | 470.7 | 460. | 459. | 2 | 506.3 | 563.9 | 587.3 | 574.4 |
| Board | | 3 | 9 | 231.9 | | | | |
——————————————————————————–
| Industrial | 203.7 | 194. | 197. | 1 | 242.5 | 273.1 | 285.4 | 275.5 |
| Packaging | | 0 | 2 | 076.5 | | | | |
——————————————————————————–
| Wood Products | 306.9 | 315. | 272. | 1 | 348.7 | 366.2 | 409.8 | 378.6 |
| | | 8 | 0 | 503.3 | | | | |
——————————————————————————–
| Other | 450.1 | 507. | 682. | 3 | 794.6 | 857.0 | 947.7 | 987.6 |
| | | 8 | 5 | 586.9 | | | | |
——————————————————————————–
| Inter-segment | -449. | -467 | -602 | -3 | -732. | -831. | -825.7 | -863. |
| sales | 0 | .0 | .5 | 253.2 | 7 | 5 | | 3 |
——————————————————————————–
| Continuing | 2 | 2 | 2 | 11 | 2 | 2 | 2 | 2 |
| Operations | 231.0 | 184. | 130. | 028.8 | 602.5 | 722.7 | 871.8 | 831.8 |
| | | 8 | 5 | | | | | |
——————————————————————————–
| Discontinued | – | – | – | 708.7 | -1.8 | 0.4 | 180.5 | 529.6 |
| operations | | | | | | | | |
——————————————————————————–
| Inter-segment | – | – | – | -179. | 0.9 | 0.0 | -45.8 | -134. |
| sales | | | | 3 | | | | 4 |
——————————————————————————–
| Total | 2 | 2 | 2 | 11 | 2 | 2 | 3 | 3 |
| | 231.0 | 184. | 130. | 558.2 | 601.6 | 723.1 | 006.5 | 227.0 |
| | | 8 | 5 | | | | | |
——————————————————————————–

Operating Profit/Loss by Segment excluding NRI and Fair Valuations
——————————————————————————–
| EUR million | Q3/09 | Q2/0 | Q1/0 | 2008 | Q4/08 | Q3/08 | Q2/08 | Q1/08 |
| | | 9 | 9 | | | | | |
——————————————————————————–
| Newsprint and | 34.8 | 31.1 | 21.5 | 140.8 | 53.0 | 33.5 | 27.9 | 26.4 |
| Book Paper | | | | | | | | |
——————————————————————————–
| Magazine | 30.6 | 5.7 | -0.1 | 88.8 | 19.7 | 27.4 | 14.5 | 27.2 |
| Paper | | | | | | | | |
——————————————————————————–
| Fine Paper | 20.4 | -4.1 | -5.7 | 80.4 | -9.7 | 33.1 | 19.7 | 37.3 |
——————————————————————————–
| Consumer | 64.9 | 41.6 | 15.5 | 107.3 | 4.3 | 37.5 | 23.0 | 42.5 |
| Board | | | | | | | | |
——————————————————————————–
| Industrial | 10.3 | 0.9 | 3.5 | 73.9 | 6.2 | 20.0 | 20.1 | 27.6 |
| Packaging | | | | | | | | |
——————————————————————————–
| Wood Products | 9.4 | -8.7 | -23. | -67.5 | -18.9 | -14.3 | -10.9 | -23.4 |
| | | | 7 | | | | | |
——————————————————————————–
| Other | -44.9 | -24. | -21. | -77.4 | -48.2 | -7.8 | -8.2 | -13.2 |
| | | 3 | 3 | | | | | |
——————————————————————————–
| Operating | 125.5 | 42.2 | -10. | 346.3 | 6.4 | 129.4 | 86.1 | 124.4 |
| Profit/Loss | | | 3 | | | | | |
| excl. NRI by | | | | | | | | |
| Segment | | | | | | | | |
——————————————————————————–
| Share of | 6.0 | 6.3 | 13.3 | 42.1 | 22.0 | -3.9 | 8.3 | 15.7 |
| results of | | | | | | | | |
| associated | | | | | | | | |
| companies | | | | | | | | |
| excl. fair | | | | | | | | |
| valuations | | | | | | | | |
——————————————————————————–
| Operating | 131.5 | 48.5 | 3.0 | 388.4 | 28.4 | 125.5 | 94.4 | 140.1 |
| Profit excl. | | | | | | | | |
| NRI and Fair | | | | | | | | |
| Valuations* | | | | | | | | |
——————————————————————————–
| Fair | 21.0 | 11.4 | -37. | -69.6 | -47.9 | 15.2 | -21.8 | -15.1 |
| valuations* | | | 9 | | | | | |
——————————————————————————–
| Operating | 152.5 | 59.9 | -34. | 318.8 | -19.5 | 140.7 | 72.6 | 125.0 |
| Profit/Loss | | | 9 | | | | | |
| excl. NRI | | | | | | | | |
——————————————————————————–
| NRI | -655. | -269 | 34.0 | -1 | -764. | -279. | -1.3 | – |
| | 1 | .3 | | 045.4 | 7 | 4 | | |
——————————————————————————–
| Operating | -502. | -209 | -0.9 | -726. | -784. | -138. | 71.3 | 125.0 |
| Loss/Profit | 6 | .4 | | 6 | 2 | 7 | | |
| (IFRS) | | | | | | | | |
——————————————————————————–
| Net financial | -46.1 | -161 | -47. | -167. | -61.4 | -23.0 | -40.9 | -41.9 |
| items | | .2 | 2 | 2 | | | | |
——————————————————————————–
| Loss/Profit | -548. | -370 | -48. | -893. | -845. | -161. | 30.4 | 83.1 |
| before Tax | 7 | .6 | 1 | 8 | 6 | 7 | | |
| and | | | | | | | | |
| Non-controlli | | | | | | | | |
| ng Interests | | | | | | | | |
——————————————————————————–
| Income tax | 29.0 | 2.3 | 12.0 | 214.8 | 191.0 | 42.6 | -1.8 | -17.0 |
| expense | | | | | | | | |
——————————————————————————–
| Net | -519. | -368 | -36. | -679. | -654. | -119. | 28.6 | 66.1 |
| Loss/Profit | 7 | .3 | 1 | 0 | 6 | 1 | | |
| from | | | | | | | | |
| Continuing | | | | | | | | |
| Operations | | | | | | | | |
——————————————————————————–
——————————————————————————–
| Discontinued | | | | | | | | |
| Operations | | | | | | | | |
——————————————————————————–
| Net | – | – | – | 4.3 | 0.1 | 0.9 | -1.8 | 5.1 |
| profit/loss | | | | | | | | |
| after tax for | | | | | | | | |
| the period | | | | | | | | |
| from | | | | | | | | |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
——————————————————————————–
| Net | -519. | -368 | -36. | -674. | -654. | -118. | 26.8 | 71.2 |
| Loss/Profit | 7 | .3 | 1 | 7 | 5 | 2 | | |
——————————————————————————–
* Fair valuations include synthetic options net of realised and open hedges, CO2
emission rights, and valuations of biological assets mainly related to
associated companies’ forest assets.

NRI by Segment
——————————————————————————–
| EUR million | Q3/09 | Q2/0 | Q1/0 | 2008 | Q4/08 | Q3/08 | Q2/08 | Q1/08 |
| | | 9 | 9 | | | | | |
——————————————————————————–
| Newsprint and | -80.1 | – | 29.0 | -15.2 | -5.0 | -7.8 | -2.4 | – |
| Book Paper | | | | | | | | |
——————————————————————————–
| Magazine | -152. | – | – | -60.4 | -19.1 | -38.7 | -2.6 | – |
| Paper | 1 | | | | | | | |
——————————————————————————–
| Fine Paper | -313. | – | – | -394. | -399. | -1.5 | 7.0 | – |
| | 6 | | | 2 | 7 | | | |
——————————————————————————–
| Consumer | -35.8 | – | – | -301. | -118. | -178. | -4.3 | – |
| Board | | | | 4 | 9 | 2 | | |
——————————————————————————–
| Industrial | -28.2 | – | – | -64.6 | -45.4 | -18.2 | -1.0 | – |
| Packaging | | | | | | | | |
——————————————————————————–
| Wood Products | -8.7 | – | – | -88.0 | -80.0 | -8.0 | – | – |
——————————————————————————–
| Other | -36.6 | -269 | 5.0 | -121. | -96.6 | -27.0 | 2.0 | – |
| | | .3 | | 6 | | | | |
——————————————————————————–
| NRI on | -655. | -269 | 34.0 | -1 | -764. | -279. | -1.3 | – |
| Operating | 1 | .3 | | 045.4 | 7 | 4 | | |
| Profit | | | | | | | | |
——————————————————————————–
| NRI on | – | -148 | – | – | – | – | – | – |
| financial | | .5 | | | | | | |
| items | | | | | | | | |
——————————————————————————–
| NRI on tax | 42.9 | 4.6 | -9.9 | 223.6 | 177.3 | 43.9 | 2.4 | – |
——————————————————————————–
| NRI on Net | -612. | -413 | 24.1 | -821. | -587. | -235. | 1.1 | – |
| Profit | 2 | .2 | | 8 | 4 | 5 | | |
——————————————————————————–
——————————————————————————–
| Discontinued | | | | | | | | |
| Operations | | | | | | | | |
——————————————————————————–
| NRI in | – | – | – | -4.5 | – | – | -4.5 | – |
| Discontinued | | | | | | | | |
| operations | | | | | | | | |
——————————————————————————–

Operating Profit by Segment
——————————————————————————–
| EUR million | Q3/09 | Q2/0 | Q1/0 | 2008 | Q4/08 | Q3/08 | Q2/08 | Q1/08 |
| | | 9 | 9 | | | | | |
——————————————————————————–
| Newsprint and | -45.3 | 31.1 | 50.5 | 125.6 | 48.0 | 25.7 | 25.5 | 26.4 |
| Book Paper | | | | | | | | |
——————————————————————————–
| Magazine | -121. | 5.7 | -0.1 | 28.4 | 0.6 | -11.3 | 11.9 | 27.2 |
| Paper | 5 | | | | | | | |
——————————————————————————–
| Fine Paper | -293. | -4.1 | -5.7 | -313. | -409. | 31.6 | 26.7 | 37.3 |
| | 2 | | | 8 | 4 | | | |
——————————————————————————–
| Consumer | 29.1 | 41.6 | 15.5 | -194. | -114. | -140. | 18.7 | 42.5 |
| Board | | | | 1 | 6 | 7 | | |
——————————————————————————–
| Industrial | -17.9 | 0.9 | 3.5 | 9.3 | -39.2 | 1.8 | 19.1 | 27.6 |
| Packaging | | | | | | | | |
——————————————————————————–
| Wood Products | 0.7 | -8.7 | -23. | -155. | -98.9 | -22.3 | -10.9 | -23.4 |
| | | | 7 | 5 | | | | |
——————————————————————————–
| Other | -63.3 | -281 | -60. | -227. | -133. | -25.1 | -32.1 | -36.5 |
| | | .9 | 3 | 2 | 5 | | | |
——————————————————————————–
| Share of | 8.8 | 6.0 | 19.4 | 0.7 | -37.2 | 1.6 | 12.4 | 23.9 |
| result of | | | | | | | | |
| associated | | | | | | | | |
| companies | | | | | | | | |
——————————————————————————–
| Operating | -502. | -209 | -0.9 | -726. | -784. | -138. | 71.3 | 125.0 |
| Loss/Profit | 6 | .4 | | 6 | 2 | 7 | | |
| (IFRS) | | | | | | | | |
——————————————————————————–
| Net financial | -46.1 | -161 | -47. | -167. | -61.4 | -23.0 | -40.9 | -41.9 |
| items | | .2 | 2 | 2 | | | | |
——————————————————————————–
| Loss/Profit | -548. | -370 | -48. | -893. | -845. | -161. | 30.4 | 83.1 |
| before Tax | 7 | .6 | 1 | 8 | 6 | 7 | | |
| and | | | | | | | | |
| Non-controlli | | | | | | | | |
| ng Interests | | | | | | | | |
——————————————————————————–
| Income tax | 29.0 | 2.3 | 12.0 | 214.8 | 191.0 | 42.6 | -1.8 | -17.0 |
| expense | | | | | | | | |
——————————————————————————–
| Net | -519. | -368 | -36. | -679. | -654. | -119. | 28.6 | 66.1 |
| Loss/Profit | 7 | .3 | 1 | 0 | 6 | 1 | | |
| from | | | | | | | | |
| Continuing | | | | | | | | |
| Operations | | | | | | | | |
——————————————————————————–
——————————————————————————–
| Discontinued | | | | | | | | |
| Operations | | | | | | | | |
——————————————————————————–
| Net | – | – | – | 4.3 | 0.1 | 0.9 | -1.8 | 5.1 |
| loss/profit | | | | | | | | |
| after tax for | | | | | | | | |
| the period | | | | | | | | |
| from | | | | | | | | |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
——————————————————————————–
| Net | -519. | -368 | -36. | -674. | -654. | -118. | 26.8 | 71.2 |
| Loss/Profit | 7 | .3 | 1 | 7 | 5 | 2 | | |
——————————————————————————–

Key Exchange Rates for the Euro
——————————————————————————–
| One Euro is | Closing Rate | Average Rate |
——————————————————————————–
| | 30 Sep 09 | 31 Dec 08 | 30 Sep 09 | 31 Dec 08 |
——————————————————————————–
| SEK | 10.2320 | 10.8700 | 10.7089 | 9.6280 |
——————————————————————————–
| USD | 1.4643 | 1.3917 | 1.3664 | 1.4710 |
——————————————————————————–
| GBP | 0.9093 | 0.9525 | 0.8865 | 0.7972 |
——————————————————————————–

Transaction Risk and Hedges in Main Currencies as at 30 September 2009
——————————————————————————–
| EUR million | USD | GBP | SEK |
——————————————————————————–
| Estimated annual net operating cash flow | 700 | 450 | -1 000 |
| exposure | | | |
——————————————————————————–
| Transaction hedges as at 30 September 2009 | -370 | -235 | 625 |
——————————————————————————–
| Hedging percentage as at 30 September 2009 | 53% | 52% | 63% |
| for the next 12 months | | | |
——————————————————————————–

Changes in Exchange Rates on Operating Profit
——————————————————————————–
| Operating Profit: Currency effect +/- 10% | EUR million |
——————————————————————————–
| | |
——————————————————————————–
| USD | 70 |
——————————————————————————–
| SEK | -100 |
——————————————————————————–
| GBP | 45 |
——————————————————————————–
The sensitivity is based on expected 2009 net operating cash flow. The
calculation does not take into account currency hedges, and assumes no changes
occur other than a single currency exchange rate movement.

Stora Enso Shares
——————————————————————————–
| Trading | Helsinki | Stockholm |
| volume | | |
——————————————————————————–
| | A share | R share | A share | R share |
——————————————————————————–
| July | 123 246 | 77 741 480 | 184 727 | 21 901 842 |
——————————————————————————–
| August | 170 721 | 126 710 808 | 264 794 | 21 004 691 |
——————————————————————————–
| September | 301 194 | 107 355 161 | 232 259 | 24 053 464 |
——————————————————————————–
| Total | 595 161 | 311 807 449 | 681 780 | 66 959 997 |
——————————————————————————–

——————————————————————————–
| Closing Price | Helsinki, EUR | Stockholm, SEK |
——————————————————————————–
| | A share | R share | A share | R share |
——————————————————————————–
| July | 5.34 | 4.46 | 55.00 | 46.20 |
——————————————————————————–
| August | 5.92 | 4.79 | 60.00 | 48.90 |
——————————————————————————–
| September | 6.28 | 4.76 | 64.75 | 48.50 |
——————————————————————————–

Calculation of Key Figures

Return on capital employed,
ROCE (%) 100 x Operating profit____
Capital employed 1) 2)

Return on operating capital, 100 x Operating profit____
ROOC (%) Operating capital 1) 2)


Return on equity, 100 x Profit before tax and non-controlling items – taxes
ROE (%) Total equity 2)


Equity ratio (%) 100 x Total equity
Total assets



Interest-bearing net liabilities Interest-bearing liabilities –
interest-bearing assets

Debt/equity ratio Interest-bearing net liabilities
Equity



1) Capital employed = Operating capital – Net tax liabilities
2) Average for the financial period


For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Markus Rauramo, CFO, tel. +358 2046 21121
Lauri Peltola, Head of Group Communications, tel. +358 2046 21380
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242

Stora Enso’s full year 2009 results will be published on 4 February 2010.

PRESS CONFERENCE IN HELSINKI
Time: 12.00 local time today
Location: Stora Enso Oyj
Address: Kanavaranta 1
Hosts: Jouko Karvinen, CEO
Markus Rauramo, CFO

The conference will be held in Finnish. Questions can be addressed to Jouko
Karvinen and Markus Rauramo after the presentation.

ANALYST CONFERENCE CALL
CEO Jouko Karvinen and CFO Markus Rauramo will be hosting a combined conference
call and webcast today at 16.00 Finnish time (15.00 CET, 14.00 UK time, 9.00 US
Eastern time).

If you wish to participate, please dial:
+44 (0)20 8609 0581 Continental Europe and the UK
09 8171
0318 Finland
08 5661 9353 Sweden
1 703 865 2823 USA
Access code: 274272#

The live webcast may be accessed at www.storaenso.com/investors


Stora Enso is the world leader in forest industry sustainability. We offer our
customers solutions based on renewable raw materials. Our products provide a
climate-friendly alternative to many non-renewable materials, and have a smaller
carbon footprint. Stora Enso is included in the Global 100 list of the world’s
most sustainable companies. Stora Enso is also listed in the Dow Jones
Sustainability Index, the FTSE4Good Index, and the Climate Disclosure Leadership
Index. Stora Enso employs 29 000 people worldwide, and our sales in 2008
amounted to EUR 11.0 billion. Stora Enso shares are listed on NASDAQ OMX
Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares
are traded in the USA as ADRs (SEOAY) in the International OTCQX
over-the-counter market.


It should be noted that certain statements herein which are not historical
facts, including, without limitation those regarding expectations for market
growth and developments; expectations for growth and profitability; and
statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or
similar expressions, are forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995. Since these
statements are based on current plans, estimates and projections, they involve
risks and uncertainties, which may cause actual results to materially differ
from those expressed in such forward-looking statements. Such factors include,
but are not limited to: (1) operating factors such as continued success of
manufacturing activities and the achievement of efficiencies therein, continued
success of product development, acceptance of new products or services by the
Group’s targeted customers, success of the existing and future collaboration
arrangements, changes in business strategy or development plans or targets,
changes in the degree of protection created by the Group’s patents and other
intellectual property rights, the availability of capital on acceptable terms;
(2) industry conditions, such as strength of product demand, intensity of
competition, prevailing and future global market prices for the Group’s products
and the pricing pressures thereto, price fluctuations in raw materials,
financial condition of the customers and the competitors of the Group, the
potential introduction of competing products and technologies by competitors;
and (3) general economic conditions, such as rates of economic growth in the
Group’s principal geographic markets or fluctuations in exchange and interest
rates.