resq100ppt

1
Result JANUARY - MARCH 2000
Result January - March 2000 /MH/mik
1
2
Sales and operating margin
Sales
Operating margin
MEUR





) Before non-recurring items
3
Profit before tax and minority items
MEUR
24
78
25
372
Before non-recurring items
4
Return on capital employed




Target gt 13 over the cycle
) Before non-recurring items
5
Debt/equity
6
Capital expenditure and depreciation
EUR million
Capital expenditure
Depreciation

Target Should not exceed the level of
depreciation
) Non-recurring write downs
7
Market Outlook

• Magazine paper
• Stable demand for LWC and SC is expected to
  continue.
• Profitability will be affected by higher prices
  of pulp and recycled fibre.
• Newsprint
• The outlook is good. Supply and demand balance is
  expected to remain tight. Increases in recycled
  paper prices will depress profitability.

8
Market Outlook

• Fine paper
• The market is expected to continue
  positive.Price increases are expected as pulp
  prices strengthen further.
• Packaging boards
• Markets in different consumer packaging boards
  are improving. Corrugated board market is
  expected to continue good in Finland, Sweden and
  Russia. Markets for containerboards and kraft
  paper remain strong. Markets for coreboard and
  cores continue to be good.
• Some inventory building in European cartonboard
  will however affect the market balance.

9
Market Outlook

• Pulp
• Norscan inventories at 1.2 million tons. List
  price for long-fibre pulp USD 670, eucalyptus USD
  650 and birch pulp USD 670. The pulp market will
  benefit from the good paper and board demand and
  the prices are expected to strengthen further.
• Sawn timber
• Demand and prices in whitewood and Central
  European sawn timber are stable. Redwood
  inventories at Nordic mills are decreasing and
  demand and prices have started to recover.

10
Key ratios
1999 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Equity per
share, EUR 7.8 6.9 7.2 7.4 7.8 8.0 Earnings per
share, EUR 0.99 0.20 0.18 0.22 0.39 0.39 Cash
earnings per share(CEPS), EUR 2.16 0.50 0.47 0.51
0.67 0.68 Return on capitalemployed (ROCE),
12.3 10.7 10.3 11.5 16.4 17.9 Return on equity
(ROE), 12.9 11.5 9.9 11.9 19.5 19.4 Debt/equity
ratio 0.90 1.10 1.08 1.01 0.90 0.84 Equity ratio,
38.4 34.0 35.6 36.1 38.4 38.4 Operating profit,
of sales 13.3 11.7 11.1 12.8 17.8 17.4 of
sales, beforenon-recurring items 12.4 10.7 11.1 1
2.8 14.9 16.6 Capital expenditure,EUR
million 740 193 154 171 222 134 Capital
expenditure, of sales 7.0 7.4 5.7 6.5 8.2 4.5 Ca
pital employed,EUR million 11,679 11,489 11,754 1
1,686 11,679 11,537 Interest-bearingnet
liabilities, MEUR 5,524 6,008 6,095 5,864 5,524 5,
261 Average number ofemployees 40.226 39.029
11
Income Statement

• MEUR 1999 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00
• Sales 10,636 2,615 2,706 2,624 2,691 2,992
• Operating profit 1,418 305 299 336 478 520
• of sales 13.3 11.7 11.1 12.8 17.8 17.4
• of sales, beforenon-recurring
  items 12.4 10.7 11.1 12.8 14.9 16.6
• Profit before tax andminority interest 1,151 233
  225 253 441 451
• Profit for the period 752 155 136 167 294 294

12
Consolidated balance sheet

• Assets MEUR Q1/99 Q2/99 Q3/99 1999 Q1/00
• Fixed assets and otherlong-term
  investments 11,900 11,991 11,840 11,901 11,979
• Current assets 4,242 3,919 4,270 4,133 4,352
• Total assets 16,142 15,910 16,110 16,034 16,331
• Shareholders equity and liabilities
• Shareholders equity 5,270 5,470 5,609 5,953 6,069
  
• Minority interests 211 189 213 202 207
• Long-term liabilities 6,676 7,070 6,545 6,184 6,2
  18
• Current liabilities 3,985 3,181 3,743 3,695 3,837
• Total shareholders equityand liabilities 16,142
  15,910 16,110 16,034 16,331

13
Acquisition of Consolidated Papers Ltd
Integration team in place

• Objective is to maximize synergies
• Finance and IT
• accounting, financing, organizationalset-up,
  IT-systems
• Operations
• analysis of operational efficiency, measurements,
  etc.
• benchmarking
• General
• purchasing, RD, cost reduction plan
• Human resources
• staffing
• mission, vision and values

14
Acquisition of Consolidated Papers Ltd
Preliminary timetable

• June Distribute proxy material (F-4)
• July Extraordinary shareholder meetings
  of Stora Enso and Consolidated Papers
• August Closing of the deal and listing of the
  ADRs on the New York Stock Exchange

15
Operating profit ofmain product areas

• EUR million I/99 II/99 III/99 IV/99 I/00
• Magazine paper 59 73 79 76 67Operating profit
  sales 14 15 16 14 13
• Newsprint 74 62 87 77 61Operating profit
  sales 18 16 21 18 15
• Fine paper 42 41 44 69 103Operating profit
  sales 8 8 8 12 16
• Packaging boards 47 42 55 44 81Operating profit
  sales 8 7 10 7 12
• Timber 5 15 10 10 23Operating profit
  sales 2 5 4 4 8
• Market pulp -4 13 37 50 112Operating profit
  sales -2 6 15 18 34