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Stora Enso Oyj
Financial Report 2023

Stora Enso Salmisaarenaukio 2 P.O. Box 309 FI-00101 Helsinki, Finland Tel: + 358 20 46 111 www.storaenso.com |  | Business ID 1039050-8 VAT No FI 10390508

Contents

Report of the Board of Directors (unaudited) |
Stora Enso introduction |
Markets and deliveries |
Financial results – Group |
Financial results – Segments |
Investments and capital expenditure |
Changes in the Group structure |
Innovation, research and development |
Non-financial information |
Environmental liabilities |
EU taxonomy |
Risks and risk management |
Climate-related financial disclosures (TCFD) |
Nature-related financial disclosures (TNFD) |
Corporate governance |
Legal proceedings |
Changes in Group management |
Share capital |
Outlook and short-term risks |
Annual General Meeting |
Proposal for the distribution of dividend |
Alternative performance measures |
Consolidated financial statements (audited) |
Consolidated income statement |
Consolidated statement of comprehensive income |
Consolidated statement of financial position |
Consolidated cash flow statement |
Supplemental cash flow information |
Statement of changes in equity |
Notes to the consolidated financial statements (audited) |
1 Basis for reporting |
1.1 Accounting principles |
1.2 Critical accounting estimates and judgements |
2 Financial performance |
2.1 Segment information |
2.2 Other operating income and expense |
2.3 Depreciation, amortisation and impairment charges |
2.4 Net financial items |
2.5 Income taxes |
2.6 Earnings per share |
3 Employee remuneration |
3.1 Personnel expenses |
3.2 Board and executive remuneration |
3.3 Post-employment benefit obligations |
3.4 Employee variable compensation and equity incentive schemes |
4 Operating capital |
4.1 Intangible assets, property, plant and equipment and right-of-use assets |
4.2 Forest assets |
4.3 Associates |

4.4 Equity instruments |
4.5 Emission rights and other non-current assets |
4.6 Inventories |
4.7 Operative receivables |
4.8 Operative liabilities |
4.9 Provisions |
5 Capital structure and financing |
5.1 Financial risk management |
5.2 Fair values |
5.3 Interest-bearing assets and liabilities |
5.4 Derivatives |
5.5 Shareholders' equity |
5.6 Cumulative translation adjustment and equity hedging |
5.7 Non-controlling interests |
6 Group structure |
6.1 Acquisitions, disposals and assets held for sale |
6.2 Group companies |
6.3 Related party transactions |
7 Other |
7.1 Commitments and contingencies |
7.2 Events after the reporting period |
Notes to the parent company financial statements (audited) |
Signatures for the financial statements |
Auditor's Report |

The official audited financial statements in Finnish are available at storaenso.com/download-centre
The audit firm PricewaterhouseCoopers Oy has provided an independent auditor’s reasonable assurance report only on Stora Enso’s
ESEF Financial Statements in Finnish in accordance with ISAE 3000 (Revised).
Unaudited 2
Report of the Board of Directors
Introduction to Stora Enso
Part of the global bioeconomy, Stora Enso is a business-to-business company and a leading
provider of renewable products in packaging, biomaterials, and wooden construction, and one of
the largest private forest owners in the world. Sustainability is integral in Stora Enso’s business
strategy, it is at the core of what we do. Stora Enso contributes to the transition towards a
biobased circular economy in three areas where it has the biggest impact and opportunities:
climate change, biodiversity, and circularity.
We create value with our low-carbon and recyclable fiber-based products, through which we
support our customers in meeting the demand for renewable sustainable products.
Stora Enso had 20,822 employees on average during 2023. The Group sales in 2023 were EUR
9.4 billion, with an operational EBIT of EUR 342 million. Stora Enso shares are listed at the Helsinki
(STEAV, STERV) and Stockholm (STE A, STE R) stock exchanges. In addition, the shares are traded
on OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF).
Markets and deliveries
Demand for cartonboard declined during 2023, with some regional exceptions. Market conditions
took a negative turn as excess inventories from the 2022 boom were destocked in combination
with weak underlying consumption due to the economic headwinds. Demand, though muted, in
the Asian region was stronger than in the more mature European and North American markets.
Containerboard demand remained weak in 2023. The economy-wide destocking cycle continued
longer than anticipated, retail sales remained stagnant and global manufacturing weakness
burdened the packaging sector. Containerboard demand declined in all regions excluding Asia,
driven by China and India. In Europe, the demand contracted to pre-pandemic levels.
The European paper demand continued to decline significantly, driven by structural demand
erosion and destocking of inventories in the whole value chain.
The European corrugated market faced challenges partly driven by weak retail demand,
especially in food, beverage, and E-commerce segments. The weakness of the European
manufacturing sector continued to drag down corrugated box demand. Overall, the European
corrugated demand is estimated to have declined by 5% in 2023.
Global demand for chemical market pulp rebounded to 3% in 2023. Demand for hardwood
pulp grew 5%, whereas softwood pulp demand increased 0.5%. Demand for unbleached kraft
pulp (UKP) dropped, whereas demand for fluff pulp continued strong. The majority of the growth
was concentrated in Asia, especially China, where pulp buyers restocked their market pulp
inventories with low priced pulp. However, the real pulp consumption in downstream markets did
not necessarily reflect the boost in demand. Demand in North America and Europe was subdued
due to a slow economy and high inflation.
The global chemical market pulp capacity increased by 2% in 2023. The hardwood capacity
increased by 5%, thanks to new capacity ramping up in South America. Due to temporary and
permanent capacity closures, softwood capacity declined by 1.5% and UKP by 9%. The overall
shipment-to-capacity balance stood at 91%, 2 percent-points up from 2022.
Global pulp inventories were elevated for the first half of the year but were considered
balanced towards the end of year. Softwood pulp inventories reached their all-time high reading
before balancing by the end of the year. Hardwood pulp inventories declined strongly in the
spring following a demand boost from China.
After the strong markets during 2021–2022, the global sawn wood consumption decreased in
2023 by 3% according to FEA (Forest Economic Advisors), with above average declines
experienced in Europe and the USA. Throughout 2023, market supply exceeded demand, which
added pressure on prices in all markets. High inflation and interest rates caused market
uncertainties and lowered customer confidence, which resulted in reduced volumes of building
permits and housing starts. Curtailments of supply started to improve the market balance during
the second half of 2023, supported by lower inventory levels.
Estimated consumption of board, pulp, sawn softwood, and paper in 2023

Tonnes, million | Europe | North America | Asia and Oceania
Consumer board | 9.1 | 8.8 | 32.7
Containerboard | 33.9 | 31.8 | 94.9
Corrugated board (billion m 2 )1 | 10.5 | n/a | n/a
Chemical market pulp | 15.3 | 7.5 | 40.2
Sawn softwood (million m 3) | 82.0 | 97.0 | 74.9
Newsprint | 2.7 | 1.1 | 5.2
Uncoated magazine paper | 1.5 | 0.7 | 0.1
1 European focus markets (Baltics, Benelux, FI, PL, SE) Source: Afry, CEPI, Numera, PPPC, Stora Enso, Forest Economic Advisors (FEA)

Production and external deliveries

| 2023 | 2022 | Change % 2023–2022
Board deliveries 1, 1,000 tonnes | 3,927 | 4,294 | -8.6%
Board production 1, 1,000 tonnes | 4,185 | 4,682 | -10.6%
Corrugated packaging European deliveries, million m 2 | 1,167 | 741 | 57.5%
Corrugated packaging European production, million m 2 | 1,094 | 771 | 41.9%
Market pulp deliveries, 1,000 tonnes | 2,220 | 2,374 | -6.5%
Wood products deliveries, 1,000 m 3 | 3,897 | 4,397 | -11.4%
Wood deliveries, 1,000 m 3 | 13,667 | 13,304 | 2.7%
Paper deliveries, 1,000 tonnes | 761 | 1,924 | -60.5%
Paper production, 1,000 tonnes | 752 | 1,926 | -60.9%

1 Includes consumer board and containerboard volumes.
The Group’s board deliveries totalled 3,927,000 tonnes, which was 368,000 tonnes, or 8.6%
lower compared to a year ago. Corrugated packaging European deliveries increased by 426
million m 2 or 57.5% to 1,167 million m 2 due to acquisition of De Jong Packaging Group. Market
pulp deliveries decreased by 153,000 tonnes, or 6.5%, to 2,220,000 tonnes. Wood product
deliveries decreased by 499,000 m 3 or 11.4% to 3,897,000 m 3. Wood deliveries increased by
363,000 m 3 or 2.7% to 13,667,000 m 3. Paper deliveries totalled 761,000 tonnes, down 1,163,000
tonnes, or 60.5%, from 2022, driven by the structural changes.
Alternative performance measures
The alternative performance measures used by Stora Enso are explained in the chapter
Alternative performance measures.
Unaudited 3
Financial results – Group
Group sales decreased by 20% year-on-year to EUR 9,396 (11,680) million mainly due to lower
sales prices and volumes as well as divestments partly offset by acquisition of De Jong
Packaging Group. Operational EBIT was EUR 342 (1,891 ) million, and the operational EBIT
margin was 3.6%. Operational EBIT decreased mainly due to decreased sales prices and
volumes as well as increased variable costs especially wood costs. Earnings per share
decreased by 123% to EUR -0.45 ( 1.97) and earnings per share excluding fair valuations
decreased by 147% to EUR -0.73 (1.55).
The IFRS operating result includes a positive net effect of EUR 194 (positive 195) million from
biological asset valuation from subsidiaries and joint operations. The positive impact comes
mainly from the increase in fair valuation in Stora Enso owned forests in Sweden, mostly driven
by higher market prices. There is also a positive net effect of EUR 56 (positive 168) million from
Stora Enso’s share of net financial items, taxes and biological asset valuation of associated
companies. The positive impact comes mainly from increase in fair valuation in Finnish forests,
through Stora Enso's 41% investment in Tornator.
Tangible and intangible asset (including goodwill) impairments amounted to EUR 776
(114) million.
The items affecting comparability (IAC) had a negative impact of EUR 895 (245) million on
IFRS operating result. The main IACs in 2023 relate to the impairments in Packaging Materials,
Biomaterials, Wood Products and segment Other, restructurings related to Sunila, De Hoop,
Anjala and Kvarnsveden sites and Group functions and Packaging Materials division as well as
disposal of Nymölla, Maxau, Hylte and Wood Products DIY sites and biocomposite business.
The IACs in 2022 mainly relate to the disposal of Russian operations as well as impairments and
other costs related to upcoming paper site disposals. Fair valuations and non-operational items
(FV) had a positive net impact on the IFRS operating result of EUR 231 (363) million. The main
IAC and FV items are presented in the chapter Alternative Performance Measures.
The IFRS operating result was EUR -322 (2,009) million.
Key figures

| 2023 | 2022 | 2021
Sales, EUR million | 9,396 | 11,680 | 10,164
Operational EBIT, EUR million | 342 | 1,891 | 1,528
Operational EBIT margin | 3.6% | 16.2% | 15.0%
Operating result (IFRS), EUR million | -322 | 2,009 | 1,568
Operating result margin (IFRS) | -3.4% | 17.2% | 15.4%
Return on equity (ROE) | -3.8% | 13.3% | 13.0%
Operational ROCE | 2.4% | 13.7% | 12.5%
Operational ROCE excl. Forest division | 1.0% | 20.4% | 17.7%
Net debt/equity ratio | 0.29 | 0.15 | 0.22
EPS (basic), EUR | -0.45 | 1.97 | 1.61
EPS excluding FV, EUR | -0.73 | 1.55 | 1.19
Dividend and distribution per share 1, EUR | 0.10 | 0.60 | 0.55
Payout ratio, excluding FV | -13.7% | 38.6% | 46.3%
Payout ratio (IFRS) | -22.1% | 30.5% | 34.3%
Dividend and distribution yield, (R share) | 0.8% | 4.6% | 3.4%
Price/earnings (R share), excluding FV | -17.17 | 8.46 | 13.60
Equity per share, EUR | 13.93 | 15.89 | 13.55
Market capitalisation 31 Dec, EUR million | 9,864 | 10,503 | 12,809
Closing price 31 Dec, A share, EUR | 12.45 | 13.90 | 16.60
Closing price 31 Dec, R share, EUR | 12.53 | 13.15 | 16.14
Average price, A share, EUR | 12.82 | 16.58 | 16.68
Average price, R share, EUR | 11.93 | 16.12 | 15.70
Number of shares 31 Dec (thousands) | 788,620 | 788,620 | 788,620
Trading volume A shares (thousands) | 968 | 1,174 | 1,750
% of total number of A shares | 0,5 % | 0.7% | 1.0%
Trading volume R shares (thousands) | 476,654 | 455,952 | 422,493
% of total number of R shares | 77,8 % | 74.5% | 69.0%
Average number of shares, basic (thousands) | 788,620 | 788,620 | 788,620
Average number of shares, diluted (thousands) | 789,714 | 789,391 | 789,126
1 It is proposed that the Board would be authorised to decide on an additional dividend payment of a maximum of EUR 0.20.The authorisation would be valid until 31 December 2024. See the Board of Directors' proposal for dividend distribution.

Sales and operational EBIT margin
Net debt to operational EBITDA
Operational ROCE excl. Forest
Unaudited 4
Net financial expenses at EUR 173 (151) million were EUR 23 million higher than a year ago.
Net interest expenses, at EUR 113 million, increased by EUR 8 million as a result of higher
interest rates on borrowings and higher amount of gross debt. Other net financial expenses, at
EUR 38 million, were EUR 6 million lower, mainly due to the higher write-down of Russia related
loan receivables and loss allowance included in the comparison period figures. The net foreign
exchange impact in respect of cash equivalents, interest-bearing assets and liabilities and
related foreign-currency hedges amounted to a loss of EUR 22 (loss of EUR 1) million, mainly
due to revaluation of foreign currency net debt in subsidiaries located in China.
The net tax totalled EUR 64 (-322) million, equivalent to an effective tax rate of 13.0%
(17.3%), as described in more detail in note 2.5 Income taxes.
The loss attributable to non-controlling interests was EUR 74 (loss of EUR 13) million, leaving
a loss of EUR 357 (gain of EUR 1,550) million attributable to Company shareholders.
Earnings per share excluding fair valuations were EUR -0.73 (1.55). Operational return on
capital employed was 2.4% (13.7%).
The Group capital employed was EUR 14,056 million on 31 December 2023, an decrease of
EUR 300 million, mainly due to impairments and change in the fair valuation of energy assets
(PVO) partly offset by acquisition of De Jong Packaging, investment projects and increase of the
fair valuation of forest assets.
Breakdown of capital employed change

EUR million | Capital Employed
31 December 2022 | 14,356
Capital expenditure excluding investments in biological assets less depreciation | 521
Investments in biological assets less depletion of capitalised silviculture costs | -5
Impairments and reversal of impairments | -770
Fair valuation of forest assets | 241
Unlisted securities (mainly PVO) | -627
Associated companies | 94
Net liabilities in defined benefit plans | -31
Operative working capital and other interest-free items, net | -344
Emission rights | -85
Net tax liabilities | 170
Acquisition of subsidiary companies | 818
Disposal of subsidiary companies | -227
Translation difference | -60
Other changes | 4
31 December 2023 | 14,056

Financing
Cash flow from operations was EUR 954 (1,873) million and cash flow after investing activities
was EUR -40 (1,162) million. Working capital decreased by EUR 300 (increased 461) million,
inventories decreased by EUR 328 million and trade receivables by EUR 389 million. Trade
payables decreased by EUR 352 million and thus had a negative impact on working capital.
Payments related to the previously recognised provisions were EUR 53 million.
Operative cash flow

EUR million | 2023 | 2022
Operational EBITDA | 989 | 2,529
IAC on operational EBITDA | -126 | -133
Other adjustments | -210 | -62
Change in working capital | 300 | -461
Cash flow from operations | 954 | 1,873
Cash spent on fixed and biological assets | -989 | -705
Acquisitions of associated companies | -5 | -7
Cash flow after investing activities | -40 | 1,162

As at 31 December 2023, Group net interest-bearing liabilities were EUR 3,167 (1,853) million.
The increase in net interest-bearing liabilities was mainly driven by the acquisition of the De
Jong Packaging Group and other significant investments such as the consumer board
investment at the Oulu site in Finland. Cash and cash equivalents net of bank overdrafts
increased to EUR 2,464 (1,917) million. The net debt/equity ratio at 31 December 2023
increased to 0.29 (0.15). The ratio of net debt to the last 12 months' operational EBITDA
increased to 3.2 (0.7) due to higher net debt and lower operational EBITDA. The average
interest rate on borrowings for the full year 2023 increased to 3.7% (3.3%) with a run-rate of
4.0% as per the end of the fourth quarter.
In May 2023, Stora Enso issued two EUR 500 million green bonds with 3- and 6.25-year
maturities. In November 2023, Stora Enso issued new SEK green bonds with nominal value of
SEK 6,100 million, equal to EUR proceeds of 524 million at the transaction date FX rate. The
SEK green bonds feature several tranches with the maturities ranging from 2025 to 2028. Later
in December 2023 the Company also completed a private placement of SEK 425 million with
maturity in 2033. This was equal to EUR proceeds of 38 million at the transaction date FX rate.
In addition, during the year, the Company re-financed altogether EUR 550 million of its
bilateral loans and committed credit facility, and also drew bilateral loans of EUR 200 million in
total that were arranged but undrawn at the end of 2022. The existing loans were extended by
one to two years and new terms also include extension options. The Company also arranged a
new EUR 100 million bilateral loan with a 1.5-year maturity and a 1-year extension option during
the second quarter. In the fourth quarter a one-year extension was signed to the revolving credit
facility of EUR 700 million to extend its maturity to 2028.
Stora Enso had in total EUR 800 million committed undrawn credit facilities as per 31
December 2023. Additionally, the Company has access to EUR 1,100 million statutory pension
premium loans in Finland.
The fair valuation of cash flow hedges and equity investments fair valued through other
comprehensive income decreased equity by EUR 647 (increased by EUR 563) million. The
decrease is mainly due to a lower fair valuation of the Group’s shareholding in Pohjolan Voima
Oy (PVO), explained especially by lower electricity price forecasts.
At the end of the year, the ratings for Stora Enso’s rated bonds were as follows:

Rating agency | Long/short-term rating | Valid from
Fitch Ratings | BBB- (stable) | 4 August 2023
Moody’s | Baa3 (stable) / P-3 | 17 November 2023

Unaudited 5
Financial results – Segments
Packaging Materials division
The Packaging Materials division is a global leader and expert in circular packaging providing premium
packaging materials based on virgin and recycled fiber. Stora Enso helps customers replace fossil-based
materials with low-carbon, renewable and recyclable alternatives for their food, beverage and transport
packaging with a wide selection of base boards and barrier coatings.

EUR million | 2023 | 2022
Sales | 4,557 | 5,496
Operational EBITDA | 267 | 993
Operational EBITDA margin | 5.9% | 18.1%
Operational EBIT | -57 | 655
Operational EBIT margin | -1.3% | 11.9%
Fair valuations and non-operational items (FV)1 | 12 | 7
Items affecting comparability (IAC)1 | -597 | -9
Operating result (IFRS) | -642 | 653
Operating capital, average | 3,580 | 3,512
Operational ROOC | -1.6% | 18.6%
Cash flow from operations | 370 | 823
Cash flow after investing activities | -235 | 488
Board deliveries, 1,000 tonnes | 4,963 | 5,425
Board production, 1,000 tonnes | 4,843 | 5,502

1 The IAC for 2023 included impairments of fixed assets of EUR -228 million for the Oulu containerboard unit, EUR -202 million for China
operations, EUR -12 million for the Anjala site's paper assets, EUR -26 million of goodwill impairments related to the Anjala and De Hoop sites,
restructuring costs related to De Hoop site closure of EUR -79 million, closing down one paper line at Anjala site of EUR -26 million, restructuring
program in division management and support functions of EU -12 million and other restructuring costs of EUR -9 million, and other IAC cases of
-3 million. The IAC for 2022 included EUR -4 million expenses from disposal of Russian operations, EUR -5 million of restructuring expenses and
EUR -1 million other cases. The fair valuations for 2023 included non-operational fair valuation changes of biological assets of EUR 12 (7) million.
Comparative figures have been restated as described in the release from 29 March 2023.
The Packaging Materials division was hit by unprecedented market conditions and sales
declined by 17%, to 4,557 (5,496) million. This was driven by lower prices and volumes for
containerboard and paper, and lower volumes for consumer board. The containerboard market
remained weak throughout the year, while the consumer board market started to soften during
Q1 and stabilised at a low level in Q4.
Operational EBIT dropped from all time high level to EUR -57 (655) million, driven by lower
volumes and prices. Variable costs in many categories declined compared to a year ago, but
overall remained higher year-on-year driven by increased wood costs.
Packaging Solutions division
The Packaging Solutions division is a packaging converter that provides premium fiber-based packaging
products and services used by leading brands across multiple market areas, including retail, e-commerce,
fresh produce, and industrial applications. The division also provides design and sustainability services for
customers to optimise material use, logistics and to reduce CO2 emissions.

EUR million | 2023 | 2022
Sales | 1,077 | 727
Operational EBITDA | 111 | 42
Operational EBITDA margin | 10.3% | 5.7%
Operational EBIT | 43 | 16
Operational EBIT margin | 4.0% | 2.2%
Items affecting comparability (IAC)1 | -26 | -98
Operating result (IFRS) | 17 | -81
Operating capital, average | 874 | 204
Operational ROOC | 4.9% | 7.9%
Cash flow from operations | 145 | 11
Cash flow after investing activities | 62 | -14
Corrugated packaging European deliveries, million m 2 | 1,178 | 767
Corrugated packaging European production, million m 2 | 1,094 | 771

1 The IAC for 2023 included EUR -19 million restructuring costs in China and EUR -16 million related to the acquisition of De Jong
Packaging Group, and EUR -1 million other cases. The IAC for 2022 included EUR -93 million related to the disposal of Russian
operations, EUR -4 million restructuring costs, EUR -2 million fixed asset impairments and EUR -1 million other cases.
Comparative figures have been restated as described in the release from 29 March 2023.
Packaging Solutions division sales were at an all-time high of EUR 1,077 (727) million, up 48%,
driven by the acquisition of De Jong Packaging Group
Operational EBIT was EUR 43 (16) million. Lower raw material prices had a positive impact
on the margins. The integration of De Jong Packaging Group proceeded well and contributed
positively to the result.
Sales and operational EBIT
Packaging Materials
Operational ROOC
Packaging Materials
Sales and operational EBIT
Packaging Solutions
Operational ROOC
Packaging Solutions
Unaudited 6
Biomaterials division
The Biomaterials division’s business opportunities are strongly driven by the need to replace fossil-based and
other non-renewable materials. Stora Enso uses all fractions of a tree to develop new biobased solutions for
various applications. T he division’s long-term growth is driven by new products and innovations, while pulp
continues to be the foundation.

EUR million | 2023 | 2022
Sales | 1,587 | 2,180
Operational EBITDA | 256 | 822
Operational EBITDA margin | 16.1% | 37.7%
Operational EBIT | 118 | 687
Operational EBIT margin | 7.4% | 31.5%
Fair valuations and non-operational items (FV)1 | 25 | -17
Items affecting comparability (IAC)1 | -224 | -2
Operating result (IFRS) | -81 | 668
Operating capital, average | 2,625 | 2,715
Operational ROOC | 4.5% | 25.3%
Cash flow from operations | 431 | 682
Cash flow after investing activities | 234 | 536
Pulp deliveries, 1,000 tonnes | 2,277 | 2,554

1 The IAC for 2023 included restructuring expenses from the closure of the Sunila pulp production of EUR -116 million, impairments of
fixed assets of EUR -59 million for the Uimaharju site, impairment of goodwill of EUR -44 million for the Nordic Mills CGU, EUR -4 million
of other cases. The fair valuations for 2023 included non-operational fair valuation changes of biological assets of EUR 25 (-17) million.
Biomaterials division sales were EUR 1,587 (2,180) million, down 27% from all-time high sales in
2022, due to significantly lower pulp sales prices in all grades and lower sales volumes, due to
market-related curtailments and the closure of the Sunila site in Finland announced in
September 2023. Market conditions were challenging with lower demand.
Operational EBIT at EUR 118 (687) million decreased by 83%, mainly due to significantly
lower sales prices and volumes. Operational EBIT was negatively impacted by significantly
higher variable costs, mainly for wood.
Wood Products division
The Wood Products division is Europe’s largest sawn timber producer and a leading provider of sustainable
wood-based solutions for the global construction industry. Additionally, it offers window and door components,
and co-products such as pellets made from wood residuals.

EUR million | 2023 | 2022
Sales | 1,580 | 2,195
Operational EBITDA | -17 | 356
Operational EBITDA margin | -1.0% | 16.2%
Operational EBIT | -64 | 309
Operational EBIT margin | -4.1% | 14.1%
Items affecting comparability (IAC)1 | -22 | -56
Operating result (IFRS) | -86 | 253
Operating capital, average | 687 | 714
Operational ROOC | -9.3% | 43.2%
Cash flow from operations | 43 | 346
Cash flow after investing activities | 3 | 264
Wood products deliveries, 1,000 m 3 | 3,727 | 4,235

1 The IAC for 2023 included impairments of fixed assets of EUR -7 million for the Veitsiluoto site, EUR -4 million for the Launkalne site,
EUR -5 million for the Honkalahti site, EUR -4 million impact from disposal of Näpi site and EUR -3 million from disposal of Wood
Products DIY unit, EUR 1 million other cases. The IAC for 2022 was related to disposal of Russian operations.
Wood Products division sales were EUR 1,580 (2,195) million, down 28%, due to the weakened
market demand and clearly lower sales prices. Weakness in construction industry resulted in
decline in building permits and project starts, and reduced the demand of the division's products
through the year. To balance the lower demand, production curtailments were implemented.
Operational EBIT was weak, at EUR -64 (309) million, a decrease of 121%. The negative
impact of sales prices and volumes could not be compensated by the division's actions to lower
the fixed costs.
Sales and operational EBIT
Biomaterials
Operational ROOC
Biomaterials
Sales and operational EBIT
Wood Products
Operational ROOC
Wood Products
Unaudited 7
Forest division
The Forest division is responsible for wood sourcing for Stora Enso’s Nordic and Baltic operations and B2B
customers. It manages the Group’s forest assets in Sweden and a 41% share of Tornator, whose forests are
mainly located in Finland. The division’s operations are based on sustainable forest management from
planning and logistics to harvesting and forest regeneration.

EUR million | 2023 | 2022
Sales | 2,490 | 2,519
Operational EBITDA | 305 | 256
Operational EBITDA margin | 12.2% | 10.2%
Operational EBIT | 253 | 204
Operational EBIT margin | 10.2% | 8.1%
Fair valuations and non-operational items (FV)1 | 206 | 367
Items affecting comparability (IAC)1 | 2 | -48
Operating result (IFRS) | 461 | 523
Capital employed, average | 5,740 | 5,518
Operational ROCE | 4.4% | 3.7%
Cash flow from operations | 70 | 146
Cash flow after investing activities | 19 | 91
Wood deliveries, 1,000 m 3 | 32,401 | 38,217
Operational fair value change of biological assets | 120 | 87

1 The IAC for 2023 included a reversal of land related impairment of EUR 5 million and other provision updates of EUR -3 million. The
IAC for 2022 included land related impairment of EUR -5 million and EUR -43 million related disposal of Russian operations. The fair
valuations for 2023 included non-operational fair valuation changes of biological assets of EUR 156 (201) million, non-operational items
of associated companies of EUR 56 (169) million, and EUR -5 (-3) million impact from adjustments for differences between fair value and
acquisition cost of forest assets upon disposal.
Forest division sales were EUR 2,490 (2,519) million, down 1%. Higher sales prices were offset
by lower demand.
Operational EBIT at EUR 253 (204) million increased by 24%. The increase was due to the
strong operational performance and higher sales prices in the Group’s own forest assets.
Other
The segment Other includes the divested paper sites until the completion of the divestments, the reporting of
the emerging businesses (including Formed Fiber and Selfly Stores), as well as Stora Enso’s shareholding in
the energy company Pohjolan Voima (PVO), and the Group’s shared services and administration.

EUR million | 2023 | 2022
Sales | 964 | 2,150
Operational EBITDA | 18 | 102
Operational EBITDA margin | 1.9% | 4.7%
Operational EBIT | 1 | 63
Operational EBIT margin | 0.1% | 2.9%
Fair valuations and non-operational items (FV)1 | -13 | 6
Items affecting comparability (IAC)1 | -28 | -33
Operating result (IFRS) | -41 | 36
Cash flow from operations | -105 | -136
Cash flow after investing activities | -123 | -203

1 The IAC for 2023 included EUR 29 million related to restructuring of Kvarnsveden, EUR 9 million to restructuring of Veitsiluoto, and
EUR -15 million to restructuring of Group Functions, EUR 52 million related to disposal of Maxau, EUR -30 million to disposal of Nymölla,
EUR -45 million to disposal of Hylte, EUR -14 million to disposal of biocomposite business, and EUR -6 million on disposal transactions
costs, EUR -14 million related to fixed asset impairments in Group Operations unit and EUR 6 million related to environmental provision
updates. The IAC for 2022 included EUR 13 million related to restructuring of Kvarnsveden, EUR -10 million to restructuring of
Veitsiluoto, EUR -28 million on impairments, transaction cost and other items related to paper site disposals of Nymölla, Hylte and
Maxau, EUR -13 million related updates in environmental provisions, EUR 8 million on Kvarnsveden site disposal, EUR -1 million related
to disposal of Russian operations and EUR -1 million other cases. The fair valuations for 2023 included non-cash income and expenses
related to CO 2 emission rights and liabilities of EUR -13 (6) million.
Comparative figures have been restated as described in our release from 29 March 2023.
Sales for the segment Other were at EUR 964 (2,150) million and operational EBIT EUR 1 (63)
million. The reduction from the previous year was mainly driven by the sale of the paper
production units in Sweden and Germany.
Sales and operational EBIT
Forest
Operational ROCE
Forest
Unaudited 8
Investments and capital expenditure
Additions to fixed and biological assets including internal costs capitalised in 2023 totalled EUR
1,125 (778) million. The total amount includes additions in biological assets of EUR 71 (77 )
million.
In February, Stora Enso announced approximately EUR 30 million investment in its Heinola
Fluting site in Finland to renew the energy set-up and process equipment. After the investment,
the site can replace also the remaining fossil-based fuels with renewable bioenergy. This will
reduce the site’s fossil-based greenhouse gas emissions by more than 90%.
In June, Stora Enso and Tetra Pak completed the investment in increasing the recycling
capacity of beverage cartons in Poland. The total investment was EUR 29 million, of which Stora
Enso’s share was EUR 17 million. A new repulping line was built at the Ostrołęka site recovering
the carton fibers.
The EUR 21 million investment, announced in June 2021, to improve the competitiveness
and environmental performance of the Anjalankoski production sites was completed during the
third quarter of 2023.
The expansion of board production capacity, announced in 2021, at the Skoghall site in
Sweden was completed in November. Following the investment, the annual packaging board
production increased by approximately 100,000 tonnes to over 900,000 tonnes. The site started
to deliver commercial quality in liquid packaging board (LPB) and coated unbleached kraft (CUK)
according to plan.
The EUR 10 million investment, decided in April 2022, at the Enocell site, Finland, was
completed during the fourth quarter of 2023. The investment reduced annual operational CO 2
emissions replacing fossil-based fuel oil with renewable pitch oil made from trees. This
complements the main energy source, sawdust powder, utilising 100% bio energy.
The EUR 1 billion investment at the Oulu site in Finland to convert the remaining idle paper
machine into a high-volume consumer board line is moving ahead according to schedule.
Production is expected to start during 2025. The investment supports the Group’s growth
strategy in renewable packaging by providing new volume for growing packaging segments. The
targeted end-use segments are food and beverage packaging, especially frozen and chilled, and
dry and fast food, mainly in Europe and North America.
During the year, Stora Enso completed a feasibility study regarding the conversion of one of
the two paper line at its Langerbrugge site in Belgium into a high-volume recycled
containerboard line, and decided to postpone the decision regarding the possible future
conversion, until there are more favourable market conditions for containerboard.
T he other main projects ongoing at the end of 2023 were were De Lier site expansion in the
Netherlands and improvements of fluff pulp production at the Skutskär site in Sweden.
Changes in the Group structure
The acquisition of De Jong Packaging Group, based in the Netherlands, for an enterprise value
of EUR 1,020 million was completed in January 2023.
Stora Enso finalised the divestment of its paper assets in 2023. The divestment of the
Nymölla paper site in Sweden to Sylvamo was completed in January, the divestment of the
Maxau site in Germany to Schwarz Produktion was completed in March and the divestment of
the Hylte site in Sweden to Sweden Timber was completed in April. The Anjala paper mill in
Finland and the Langerbrugge paper mill in the Netherlands were retained in the Group.
During the year, Stora Enso closed down its Sunila pulp production and lignin extraction unit
in Finland, the De Hoop containerboard site in the Netherlands, one containerboard line at its
Ostrołęka site in Poland, and the Näpi sawmill in Estonia.
Stora Enso is in the process of divesting its consumer packaging site and forestry operations
in Guangxi, China.
Innovation, research and development
Stora En so’s total spend on innovation, research and development in 2023 was EUR 114 (112)
million, equivalent to 1.2% (1.0%) of total sales. Research and development work is a basic
element for staying relevant and competitive towards customers. In 2023, Stora Enso employed
approximately 330 people in research and development. The responsibility of product
innovations and development of services is with the business divisions.
Stora Enso's growth focus is on the development of sustainable packaging applications to
replace plastic-based materials; bio-based barriers solutions for packaging; innovative
biomaterials or high-end applications; and the development of sustainable wooden-based
materials and components which store carbon and improve energy efficiency of buildings.
Stora Enso’s long-term science and research priority is to address the early research at
universities and institutes for enabling breakthroughs and competence build-up to meet the
needs of the divisions. The Group Innovation and R&D is working closely with the strategic
partner universities, research institutes and excellence centers to get answers to central
scientific questions related to renewable materials.
Intellectual property (IP) is an important tool to support Stora Enso's development of
innovative products and processes and safeguarding the Group's intellectual assets. During
2023, Stora Enso continued to strengthen its patent portfolio by applying for patents for 83 new
innovations. The focus of the new patent filings was within the Biomaterials, Packaging Materials
and Packaging Solutions divisions. The Biomaterials division has new patent filings related to
Lignode, biobinders, biofoam, and circular chemicals. The Packaging Materials division
continues to strengthen the patent portfolio with filings related to barriers, board technology and
circular packaging. The Packaging Solutions division has new patent filings related to, for
example, formed fiber and packaging design. Stora Enso’s patent portfolio amounts to over
3,500 applications and granted patents.
Non-financial information
Requirements of non-financial information reporting according to the Finnish Accounting Act are
reported below. The scope of the reporting includes those non-financial topics that relate to the
Group’s key risks.
Risks and policy principles related to these topics are additionally described in the chapters
Risks and Risk Management, Task Force on Climate-related Financial Disclosures (TCFD), and
T ask Force on Nature-related Financial Disclosures (TNFD).
Business model
Stora Enso is one of the leading providers of renewable products in packaging, biomaterials, and
wooden construction, and one of the largest private forest owners in the world. Sustainability is
embedded in the Group's strategy and responsible business practices. Stora Enso contributes to
the transition towards a circular bioeconomy in the three areas where it has the biggest impact
and opportunities: climate change, biodiversity, and circularity. A description of Stora Enso's
business model is presented at the beginning of the Report of the Board of Directors.
Stora Enso acknowledges the importance of the United Nations Sustainable Development Goals
(SDGs) and supports all seventeen SDGs. The SDGs ‘Responsible consumption and
production’ (goal 12), ‘Climate action’ (goal 13), and ‘Life on land’ (goal 15) have been identified as
the most relevant, where the Group has the largest impact through its own operations and products.
Unaudited 9
Sustainability governance
Sustainability is a key element of Stora Enso’s corporate governance owned by the Board of
Directors, the President and Chief Executive Officer (CEO), and the Group Leadership Team
(GLT). The CEO carries the ultimate responsibility for the implementation of the sustainability
agenda. Sustainability work is led by the Executive Vice President, Sustainability, who reports
directly to the CEO and is part of the Group Leadership Team (GLT). The Board of Directors’
Sustainability and Ethics Committee oversees the implementation of Stora Enso’s sustainability
agenda, and Ethics and Compliance Strategy. The Committee met four times in 2023.
Stora Enso’s Sustainability Policy describes the Group's overall approach to sustainability
and the governance model. The Code of Conduct and other policies, guidelines, and statements
on specific sustainability topics further elaborate the approach, while also guiding the Group’s
employees in their everyday work. These documents are available at storaenso.com/
sustainability.
More information about Stora Enso’s approach to sustainability is available in the sections
Our strategy, Our people, and Sustainability reporting.
Environmental matters
Climate change
Key policy: Policy for Energy and Climate change
Stora Enso's science-based target is to reduce absolute Scope 1 and 2 CO 2 e emissions from
operations by 50% by 2030 from the 2019 baseline, in line with the 1.5-degree scenario. Stora
Enso is also committed to reducing absolute Scope 3 CO 2 e emissions by 50% by 2030 from the
2019 baseline.
In 2023, Stora Enso’s absolute CO 2 e emissions (Scope 1 and 2) were 41% lower than the
baseline level (27% 1 lower in 2022). The Group's CO 2 e emissions elsewhere along the value
chain (Scope 3) were 34% lower than the baseline level (24%1 lower in 2022). During 2023, the
emissions in all three Scope categories decreased mainly as a consequence of lower production
volumes as well as site and production line closures.
Sustainable forestry and biodiversity
Key policy: Wood and Fiber Sourcing and Land Management Policy
Stora Enso is committed to achieving a net-positive impact on biodiversity in its own forests and
plantations by 2050 through active biodiversity management. The Group steers its biodiversity
actions through a Biodiversity Leadership Programme to improve biodiversity at species, habitat,
and landscape levels. Progress is monitored with science-based impact indicators reported in
the chapter Sustainable forestry and biodiversity of the Sustainability reporting section.
Stora Enso uses its own forest in Sweden as a platform for continuously developing new
biodiversity management practices to be adapted to local conditions and implemented in
different geographical areas when feasible. Measures to be developed, tested, and used in the
Group's own forests in Sweden include: application of digital tools to improve accuracy of
planning and operations; increasing amount of deadwood and broad-leaved trees, especially
birch; continuous cover forestry in suitable areas; and increasing use of controlled burning in
forest regeneration.
Currently, Stora Enso follows its progress on sustainable forestry with a key performance
indicator that measures the proportion of land in wood production and harvesting owned or
leased by Stora Enso covered by forest certification schemes. At the end of 2023, Stora Enso's
owned or leased lands covered a total area of 2.02 million hectares (2.01 million hectares in
2022). The majority of Stora Enso’s owned or leased lands are located in Sweden. For more
details, see note 4.2 Forest assets. The Group’s target is to maintain the high level of 96%, and
in 2023, the certification coverage amounted to 99% (99% 2 in 2022). Certain purchased areas in
Stora Enso’s joint operations in Brazil and Uruguay were in the certification process but not yet
certified by the end of 2023.
In 2023, the total amount of wood (including roundwood and wood chips) delivered to Stora
Enso's production sites was 28.1 million m 3 (solid under bark) (35.1 million m 3 in 2022). The
proportion of third-party certified wood in the Group's total wood supply was 81% (80%).
Circularity
Key policy: Circular Design Guidelines
Stora Enso is committed to circular material flows that help to minimise waste and combat
climate change. The target is to achieve 100% technically recyclable products by 2030. By the
end of 2023, 94% (94% in 2022) of the Group's products were recyclable. 3
Water
Key policy: Environmental Guidelines
Stora Enso constantly strives to improve its water performance through targeted investments. As
of 2023, a new Group goal was set to reduce specific process water discharges per saleable
tonne (m 3 tonne) by 17% from the 2019 baseline (36 m 3/tonne) by 2030. In 2023, the process
water discharges were 35 m 3/tonne (34 m 3 in 2022), with a 3% decrease from the baseline.
For total water withdrawal, the target is to maintain a decreasing trend from the 2016 baseline
(60m 3/tonne). In 2023, total water withdrawal was 61 m 3 per saleable tonne (57 m 3 in 2022).
Lower production volumes are currently adversely affecting the performance per saleable tonne,
as a regular water flow needs to be maintained, particularly in wastewater treatment.
Social and employee matters
Employees
Key policies: Minimum Human Resources Requirements for labour conditions
On 31 December 2023, there were 19,842 (20,879) employees in the Group. The average
number of employees in 2023 was 20,822, which is 969 less than the average number in 2022.
The figures include 50% of the employees at Veracel in Brazil and Montes del Plata in Uruguay.
Read more in the chapter Employees in the Sustainability reporting section.
Personnel expenses totalled EUR 1,275 (1,315) million or 13.6% of sales. Wages and
salaries were EUR 962 (996) million, pension costs EUR 147 (152) million, and other employer
costs amounted to EUR 162 (160) million.
Unaudited 10
1 Comparative figures are restated due to structural changes or additional data after previous annual report.
2 Reporting on total land area and its forest certification coverage aligned with financial reporting on forests assets. For more information, see note 4.2
3 Based on the technical recyclability of products and their production volumes consolidated as tonnes. Technical recyclability is defined by international standards and tests, when available, and in absence of these, by Stora Enso’s own tests that prove recyclability. The reporting
scope includes Stora Enso’s packaging, pulp, paper, and solid wood products as well as biochemical by-products.
At the end of 2023, the Group's top four countries in respect to the number of employees
were Finland, Sweden, China, and Poland. 25% (25%) of all employees were women. Stora
Enso's target is to increase the share of female managers among all managers to 25% by the
end of 2024. By the end of 2023, 24% of managers were female (23%).
Personnel turnover in 2023 was 11% (14%). Illness-related absenteeism amounted to 3.7%
(4.1%) of total theoretical working hours.
The Group's wages in relation to local minimum wages are presented in the chapter
Consolidated sustainability figures in the Sustainability reporting section. Remuneration to the
Board of Directors and executive management is described in note 3.2 Board and executive
remuneration.
Safety
Key policy: Health and Safety Policy
In 2023, the Total Recordable Incident (TRI) rate was 4.7 (5.9). The milestone of 4.9 for 2023
was achieved by prioritising preventive safety measures and reinforcing divisions’ accountability
on improving performance. In 2023, Stora Enso introduced a new leading safety indicator, the
‘Safety Engagement Rate’, focused on preventive safety management. In 2023, no fatal injuries
occurred at Stora Enso’s sites.
Sustainable sourcing
Key policy: Supplier Code of Conduct (SCoC)
Stora Enso’s key performance indicator for responsible sourcing measures the proportion of
Group's total supplier spend covered by the Supplier Code of Conduct (SCoC), including all
categories and regions. Stora Enso's target is to maintain a minimum coverage level of 95% of
supplier spend covered by the SCoC. By the end of 2023, 95% of Stora Enso’s total spend on
materials, goods, and services was duly covered (96% at the end of 2022).
Respect for human rights
Key policy: Human Rights Policy and Guidelines
Stora Enso’s commitment to respect human rights covers all the Group's operations, including
employees, contractors, suppliers, and neighbouring communities. In addition to the Group's
commitment to the UN Guiding Principles on Business and Human Rights, Stora Enso’s annual
Slavery and Human Trafficking Statement is available at storaenso.com/sustainability.
While Stora Enso considers all human rights to be important and respects them, the human
rights identified as most salient remain the primary focus. This includes the following topics:
• Health and safety
• Fair labour (fair employment conditions, freedom from forced labour, freedom of association,
non-discrimination, and non-harassment)
• Land and natural resource rights acquisition and management
• Grievance mechanisms
• Children’s rights (relevant to the forest sector)
In 2023, Stora Enso shared best practices and adapted existing processes to embed the outcomes
of the three human rights due diligence deep-dive projects initiated in 2022. The projects were
carried out together with a third-party consultancy, with the aim of improving risk identification and
controls for two high-risk supply chains, as well as the due diligence processes in the Group’s own
operations. Read more in chapter Human Rights in the Sustainability reporting section.
During 2023, Stora Enso continued to address land and natural resource rights in Guangxi,
China and Bahia, Brazil.
Guangxi, China
Stora Enso leases 69,700 (73,100) hectares of land in Guangxi province China, of which 53,400
(53,400) hectares is leased from state-owned forest farms. The remaining 16,300 (19,700)
hectares, or 23% (27%) of the total area, is social land leased from village collectives, individual
households, and local forest farms.
Parts of the land leased by Stora Enso have been occupied for up to ten years for the
purpose of growing crops and trees on a small scale. In some cases, the occupiers are claiming
rights to the land based on historical land ownership documents that have been superseded by
state ownership in successive land reform processes. Recovery of occupied land continued in
2023, with 7,132 (6,124) hectares of land still under occupation at the end of the year. As
announced in December 2022, Stora Enso has initiated a sales process for a divestment of its
consumer board production site and forestry operations in Beihai, China.
Bahia, Brazil
In Bahia, Brazil, work continued on the Sustainable Settlement Initiative launched in 2012 to
provide farming land and educational support for local families in the landless people’s social
movements. In 2018, Veracel signed a new agreement with the social landless movements to
complement the earlier agreed Sustainable Settlement Initiative.
At the end of 2023, 139 (182) hectares or 0.1% (0.2%) of productive land owned by Veracel
remained occupied by movements not involved in the agreements.
At the end of 2023, the total land area owned by Veracel was 209,000 (210,000) hectares, of
which 82,000 (82,000) hectares are used for growing eucalyptus for pulp production.
Approximately half of Veracel's lands are dedicated to protecting local biodiversity by restoring
and conserving the natural Atlantic rainforest.
Anti-corruption and bribery matters
Key policies: Business Practice Policy, the Stora Enso Code (Code of Conduct)
A total of 131 (153 in 2022) potential non-compliance cases were reported in 2023. During the
past years, there has been a significant increase in reported misconduct cases, which is likely
due to a greater external and internal focus on ethical conduct, compliance, and voicing
concerns. A total of 163 (140) investigations of potential non-compliance were completed, which
also included open cases from previous years. Proven cases leading to disciplinary action, legal
action and/or process improvements were identified in 30 (44) of the investigations. Based on
the Group’s categorisation, 9 (13) of the proven cases were related to corruption and/or fraud,
resulting in employee dismissal or a disciplinary process. While Stora Enso continues to enforce
zero tolerance for corruption, none of the proven cases had a material impact on the Company.
Furthermore, 7 (12) of the proven cases were related to discrimination, harassment and/or
bullying. Remediation plans have been or are being implemented together with relevant
management representatives.
Unaudited 11
Environmental investments and liabilities
In 2023 Stora Enso’s environmental investments amounted to EUR 132 (82) million. These
investments were mainly to improve the quality of air and water, to enhance resource and
energy efficiency, and to minimise the risk of accidental spills.
Stora Enso’s environmental costs in 2023 excluding interest and including depreciation
totalled EUR 240 (243) million. These costs include taxes, fees, refunds, permit-related costs,
and repair and maintenance costs, as well as wastewater treatment chemicals and certain other
materials.
Provisions for environmental remediation amounted to EUR 63 (73) million at 31 December
2023, details of which are in note 4.9 Provisions. There are currently no active or pending legal
claims concerning environmental issues that could have a material adverse effect on Stora
Enso’s financial position.
EU Taxonomy
To meet the EU’s climate and energy targets for 2030 and reach the objectives of the European
Green Deal, a classification system for sustainable economic activities called EU Taxonomy was
introduced in 2020. Large companies are obligated to report the share of Taxonomy-eligibility
and Taxonomy-alignment in their operations. Taxonomy-eligibility describes if an economic
activity is included in the scope of activities recognised in the EU Taxonomy Regulation.
Taxonomy-alignment describes if an economic activity is sustainable based on the technical
screening criteria for substantial contribution and do-no-significant harm specified for the activity.
Taxonomy-aligned activity needs to be also carried out in compliance with the minimum
safeguards, thus to respect basic human rights and follow good business conduct rules.
In 2023 EU Taxonomy was expanded to four remaining environmental objectives with the EU
Environmental Delegated Act and with amendments to Climate Delegated Act. The amendments
did not bring major impact on Stora Enso's Taxonomy-eligibility. The forest industry is not at the
core of the current legislation and therefore the Group has only few activities to report on. From
Stora Enso’s main products, the wood-based solutions for construction industry are included in
the EU Taxonomy through their contribution to buildings' energy efficiency. Other main products,
production of pulp, consumer board, containerboard and corrugated packaging, are out of the
scope of the EU Taxonomy and therefore the reported Taxonomy-eligible KPIs are low.
A ccounting principles
The EU Taxonomy KPIs, turnover, capex and opex, are presented in separate tables as defined
in the regulation. The total turnover is the Group’s total sales, as presented in the line of sales, in
consolidated income statement, and rental income in 2023, which respectively include the
IFRS 15 and the IFRS 16 income according to the EU Taxonomy turnover definition. The
external sales connected to the economic activities are reported under Taxonomy-eligible
turnover. The total capex is the Group's total capital expenditure in 2023, as presented in the line
of additions, excluding goodwill additions, in note 4.1 Intangible assets, property, plant and
equipment and right of use assets, and note 4.2 Forest assets. The Taxonomy-eligible capex are
the investments related to the assets or processes associated with the respective economic
activities. The total opex covers the maintenance expenses, short-term lease costs, non-
capitalised research and development costs and silviculture costs at the Group level. The
Taxonomy-eligible opex include the corresponding direct non-capitalised costs related to the
economic activities.
Double counting is avoided by having a clear cost structure in reporting which ensures that
the profit centers and cost elements are separate for each activity. In reporting the activities do
not overlap between environmental objectives.
Taxonomy eligible and aligned activitie s
Stora Enso has identified seven eligible activities to report in the EU Taxonomy in the conducted
yearly exercise. The eligibility and alignment assessments have been carried out based on the
best interpretation of the Taxonomy Regulation and the available guidelines from the European
Commission. In case of unclarities, the conservative approach has been chosen. The
assessments and the data are covered by external assurance.
1.3 Forest management
Taxonomy-eligible forest management includes Stora Enso's own forest activities in Sweden
where the Group has full control over the activity. Tree plantations in South America and China
are not included in the activity. Of Stora Enso’s Swedish forests, 100% are certified under
certification systems (PEFC or FSC) which lays the foundation for sustainable forest
management. Stora Enso considers its forest management practices aligned with EU Taxonomy,
but has been unable to fulfill the third party verification requirement described in forest
management substantial contribution criteria (section 4. Audit). Stora Enso has been actively
searching a partner who is capable of conducting EU Taxonomy compliant verification and will
continue the search. Until then the Group reports its forest management as eligible but not-
aligned in EU Taxonomy.
The output of the activity, the grown wood, is used mostly internally in Stora Enso’s own
operations. The forest management turnover in the EU Taxonomy includes the sale of externally
sold roundwood and forest residuals.
1.4 Conservation forestry
In Brazil, Stora Enso’s 50% owned joint operation Veracel has dedicated more than half of its
land for the protection and restoration of biological biodiversity in natural Atlantic rainforest. The
forest is excluded from the harvesting activities. Stora Enso considers the conservation practises
aligned with EU Taxonomy, but has been unable to fulfil the third party verification requirement
described in conservation forestry substantial contribution criteria (section 4. Audit). The activity
is thus reported as eligible but not- aligned. Costs from the conservation operations are reported
in opex.
2.4 Remediation of contaminated sites and areas
Remediation projects of contaminated sites and areas are related to discontinued operations
and mill closures at Stora Enso sites. The expenses related to the environmental remediation
work carried out are included in the reported opex.
3.4 Manufacture of batteries
Stora Enso's pilot plant costs and research and development expenses related to hard carbon
innovation are included in Taxonomy-eligible opex. Turnover for the activity is expected within
future years. The alignment assessment is done based on the predicted future industrial scale
operations and production which will be aligned with the technical screening criteria of 3.4
Manufacture of batteries once started. For more information on Lignode® by Stora Enso, see the
Group's website storaenso.com/lignode.
Unaudited 12
3.5 Manufacture of energy efficiency equipment for buildings
Stora Enso produces wood-based solutions for the construction industry. As Stora Enso is not a
manufacturer of the end products, the compliance with the substantial contribution was
assessed based on the knowledge of the end use and the energy efficiency related regulations
in the primary market areas. The external sales related to the share of production that is
estimated to end up for doors, windows, roofing and external wall systems, is included under the
EU Taxonomy turnover. The same share is used in the allocation of the related capex and opex
for the activity.
4.20 Cogeneration of heat/cool and power from bioenergy
Wood residuals and by-products from the pulp process are used for energy production. The
bioenergy generated from biobased feedstock is considered eligible in the EU Taxonomy
reporting. The turnover includes the external sales of the excess electricity and heat which is not
consumed internally. T he largest single capex item in the reporting is the investment to
bioenergy production at the Oulu production site, expected to be in use 2025.
7.6 Installation, maintenance and repair of renewable energy technologies
The installation of renewable energy technologies is considered eligible in the EU Taxonomy
reporting. The reported capex includes the investments in the installation of solar panels at Stora
Enso sites.
Minimum safeguards
Minimum safeguards were assessed in Group-level from two angles: by reviewing the company
processes for human rights, corruption, taxation and fair competition to determine that the
adequate processes and controls are in place, and by investigating that there are no known
breaches or violations existing in the parent company, in its subsidiaries or by senior
management. The Group considers its processes to be at a robust level and with no violations to
meet the alignment with the minimum safeguards. Read more in the following chapters in the
Sustainability reporting section: Human rights, Business ethics, and Stora Enso as a taxpayer.
Unaudited 13
Proportion of Turnover from products or services associated with Taxonomy-aligned economic activities 2023

EUR million |  |  |  | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |  |
Economic Activities | Code | Turnover | Proportion of turnover year 2023 | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned or eligible turnover year 2022 | Category enabling activity | Category transition al activity
|  | EUR | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Forest management | CCM 1.3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
Manufacture of energy efficiency equipment for buildings | CCM 3.5 | 413 | 4.4% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 41 | 0.4% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | n/a | Y | Y | 96.6% |  |
Turnover of environmentally sustainable activities (Taxonomy- aligned) (A.1) | 454 | 4.8% | 100% |  |  |  |  |  |  |  |  |  |  |  |  | 99.7% |  |
Of which Enabling | 413 | 4.4% | 100% |  |  |  |  |  |  |  |  |  |  |  |  | 78.3% | E |
Of which Transitional |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Forest management | CCM 1.3 | 118 | 1.3% |  |  |  |  |  |  |  |  |  |  |  |  |  | —% |  |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 2 | 0.0% |  |  |  |  |  |  |  |  |  |  |  |  |  | 3.4% |  |
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 119 | 1.3% |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.3% |  |
A.Turnover of Taxonomy eligible activities (A.1+A.2) | 574 | 6.1% |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnover of Taxonomy-non-eligible activities | 8,836 | 93.9% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL 1 | 9,410 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

1 In the EU Taxonomy, turnover includes also rental income, therefore the figure differs slightly from the Group total sales.
Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
Unaudited 14
Proportion of capex from products or services associated with Taxonomy-aligned economic activities 2023

EUR million |  |  |  | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |  |
Economic Activities | Code | Capex | Proportion of capex year 2023 | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned or eligible capex year 2022 | Category enabling activity | Category transition al activity
|  | EUR | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | % | E | T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Forest management | CCM 1.3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
Manufacture of batteries | CCM 3.4 | — | 0.0% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E |
Manufacture of energy efficiency equipment for buildings | CCM 3.5 | 4 | 0.4% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E |
District heating/cooling distribution | CCM 4.15 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 57 | 5.1% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | n/a | Y | Y | 70.1% |  |
Installation, maintenance and repair of renewable energy technologies | CCM 7.6 | 3 | 0.3% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | n/a | n/a | n/a | n/a | Y | —% | E |
Capex of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 64 | 5.7% | 100% |  |  |  |  |  |  |  |  |  |  |  |  | 94.3% |  |
Of which Enabling | 7 | 0.6% | 100% |  |  |  |  |  |  |  |  |  |  |  |  | 54.9% | E |
Of which Transitional |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Forest management | CCM 1.3 | 7 | 0.6% |  |  |  |  |  |  |  |  |  |  |  |  |  | —% |  |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 4 | 0.3% |  |  |  |  |  |  |  |  |  |  |  |  |  | 29.9% |  |
Capex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites) (A.2) | 10 | 0.9% |  |  |  |  |  |  |  |  |  |  |  |  |  | 5.7% |  |
A.Capex of Taxonomy eligible activities (A.1+A.2) | 75 | 6.6% |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capex of Taxonomy-non-eligible activities | 1,051 | 93.4% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL | 1,125 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
Unaudited 15
Proportion of opex from products or services associated with Taxonomy-aligned economic activities 2023

EUR million |  |  |  | Substantial contribution criteria | DNSH criteria ('Does Not Significantly Harm') |  |  |  |
Economic Activities | Code | Opex | Proportion of opex year 2023 | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Climate change mitigation | Climate change adaptation | Water | Pollution | Circular Economy | Biodiversity | Minimum safeguards | Proportion of Taxonomy aligned or eligible opex year 2022 | Category enabling activity | Category transition al activity
|  | EUR | % | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y; N; N/EL | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N |  | E | T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Forest management | CCM 1.3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
Conservation forestry | CCM 1.4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
Remediation of contaminated sites and areas | PPC 2.4 | 6 | 0.7% | n/a | n/a | n/a | Y | n/a | n/a | Y | Y | Y | n/a | Y | Y | Y | —% |  |
Manufacture of batteries | CCM 3.4 | 21 | 2.6% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E |
Manufacture of energy efficiency equipment for buildings | CCM 3.5 | 20 | 2.5% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | Y | Y | Y | 100% | E |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 32 | 4.1% | Y | N | n/a | n/a | n/a | n/a | n/a | Y | Y | Y | n/a | Y | Y | 52.9% |  |
Opex of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 78 | 9.9% | 92.7% |  |  | 7.3% |  |  |  |  |  |  |  |  |  | 82.9% |  |
Of which Enabling | 41 | 5.2% | 100% |  |  |  |  |  |  |  |  |  |  |  |  | 45.0% | E |
Of which Transitional |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Forest management | CCM 1.3 | 23 | 2.9% |  |  |  |  |  |  |  |  |  |  |  |  |  | —% |  |
Conservation forestry | CCM 1.4 | 1 | 0.1% |  |  |  |  |  |  |  |  |  |  |  |  |  | —% |  |
Cogeneration of heat/cool and power from bioenergy | CCM 4.20 | 6 | 0.7% |  |  |  |  |  |  |  |  |  |  |  |  |  | 47.1% |  |
Opex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activites) (A.2) | 30 | 3.8% |  |  |  |  |  |  |  |  |  |  |  |  |  | 17.1% |  |
A.Opex of Taxonomy eligible activities (A.1+A.2) | 108 | 13.7% |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Opex of Taxonomy-non-eligible activities | 681 | 86.3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOTAL | 790 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective
N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective
N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
Unaudited 16
Risks and risk management
Our approach to risk management
Risk is an integral element of business and corporate governance, and it is characterised by
both threats and opportunities, which may have an impact on future performance and the
financial results of Stora Enso, as well as on its ability to meet certain social and environmental
objectives. Stora Enso is committed to ensuring that systematic, holistic and proactive
management of risks and opportunities is among its organisational core capabilities, and that a
culture is fostered where both are carefully considered in all business decisions. Through
consistent application of dynamic risk analysis and scenario planning, Stora Enso enhances
opportunities and manages risk in order to reduce threats which may prevent the Group from
reaching its business goals.
Risk governance
Stora Enso defines risk as the effect of uncertainty on the Group's ability to meet organisational
values, objectives and goals. The Group Risk Policy, which is approved by the Board of
Directors, sets out the overall approach to governance and the management of risks in
accordance with the COSO (Committee of Sponsoring Organizations) framework and in line with
the ISO 31000 standard. The Board retains the ultimate responsibility for the overall risk
management process and for determining predominantly through Group policies the appropriate
and acceptable level of risk.
The Board has established a Financial and Audit Committee to provide support to the Board
in monitoring the adequacy of the risk management process within Stora Enso, and specifically
regarding the management and reporting of financial risks. This oversight scope includes also
monitoring of the cybersecurity risk. The Sustainability and Ethics Committee is responsible for
overseeing the company’s sustainability and ethical business conduct, its strive to be a
responsible corporate citizen, and its contribution to sustainable development.
The head of Enterprise Risk Management, reporting to the Chief Strategy and Innovation
Officer, is responsible for the design, development and monitoring of the top-down
implementation of the Group risk management framework. Each division and Group function
head, together with their respective management teams, are responsible for process execution
and cascading the framework and guidelines further down in the organisation. The Internal Audit
unit evaluates the effectiveness and efficiency of the Stora Enso risk management process.
Risk management process
Risk management is embedded in all decision-making processes, with holistic risk assessments
conducted also as part of all significant investment decisions. In connection with the annual
strategy process, business divisions and group service and support functions conduct a holistic
baseline risk assessment, linked to their key objectives. Specific guidance regarding the risk
management process is outlined in the enterprise risk management instructions.
Business entities and functions identify the sources of risk events including changes in
circumstances and their causes and potential consequences. Stora Enso’s risk model outlines
the overall risk universe which is used to support holistic risk identification and risk consolidation,
while also providing taxonomy as well as consistency in risk terminology.
Risk analysis involves developing an understanding of the risk to provide an input for risk
evaluation. The purpose of risk evaluation is to determine the risk priorities and to support
decision making to determine which risks require treatment/actions. Risks are assessed in terms
of their impact and likelihood of occurrence, often based on specific risk scenarios. The
effectiveness of existing risk reduction is factored in to define the residual risk level. Pre-defined
impact scales consider financial, safety and reputational impacts, on both a quantitative and
qualitative basis.
Risk treatment involves selecting one or more risk management option, such as avoidance,
reduction, sharing or retention. Additional risk mitigation actions are determined for risks which
exceed the perceived risk tolerance incorporating the assignment of responsibility, schedule and
timetable of the risk response actions.
Following the annual baseline assessment, prioritised and emerging risks, as well as the
corresponding risk mitigation and business continuity plans related to those risks, are reviewed
in divisional business review meetings on a semi-annual basis.
Despite the measures taken to manage risks and mitigate the impact of risks, and while some
of the risks remain beyond the direct control of the management, there can be no absolute
assurance that risks, if they occur, will not have a materially adverse effect on Stora Enso’s
business, financial condition, operating profit or ability to meet financial obligations.
Main risks
Reputation
Reputational risks often reflect the combined impacts of many other types of risks and could be
a consequence of incidents or non-compliant behaviour of employees, contractors, suppliers or
other business partners. This includes failure to comply with norms, laws and regulations, or
policy documents. Damage to Stora Enso’s reputation and brand may result in a loss of investor
and customer confidence leading to higher cost of capital and decreased revenues.
Mitigation measures and opportunities
Policies such as the Stora Enso Code and Supplier Code of Conduct ensure that the Board has
oversight. Continuous and mandatory training sessions for employees and, on occasion,
suppliers guarantees that the policies are being implemented, and audits are conducted to
monitor that Stora Enso’s requirements are met. Stora Enso has established a Speak Up
Hotline, through which employees and any third party globally can anonymously report potential
non-compliance cases. All reported cases are subject to an established investigation and
reporting process, with proven cases leading to actions. Stora Enso continuously engages with
its stakeholders to enhance relationships, to respond to developing needs and to inform its
strategy.
Macroeconomy, geopolitics, and currency rates
Changes in global economic conditions, such as sharp market corrections and foreign exchange
volatility, could have a negative and material impact on Stora Enso's profit, cash flows and
financial position.
Stora Enso is exposed to several financial market risks that the Group is responsible for
managing under policies approved by the Board of Directors. The objective is to achieve cost-
effective funding in Group companies and manage financial risks by using financial instruments
to reduce earnings volatility. The main exposures for the Group, besides currency risk, are
interest rate risk, liquidity risk, refinancing risk, commodity price risk and credit risk. Financial
risks are discussed in detail in n ote 5.1 Financial risk management.
Unaudited 17
Mitigation measures and opportunities
Stora Enso has a diversified portfolio of businesses which mitigates exposure to any one country
or product segment. The external environment is continuously monitored and planning
assumptions take account of important near- to medium-term and long-term drivers and risks
related to key macro-economic factors. The compliance to the Board-approved risk appetite is
closely monitored and cash flow and liquidity are actively managed. Stora Enso hedges 15–60%
of the highly probable 12-month net foreign exchange flows in main currency pairs. Currency
translation risk is reduced by funding assets, whenever economically possible, in the same
currency as the asset. The divisions regularly monitor their order flows and other leading
indicators, where available, so that they may respond quickly to a deterioration in trading
conditions. In the event of a significant deterioration in general economic condition and in main
leading economic indicators, the Group has a possibility to implement cost reduction measures
to offset the impact on margins from deterioration in sales.
Competition and market demand
The packaging, pulp, paper and wood products industries are mature, capital intensive and
highly competitive. Stora Enso’s principal competitors include several large international forest
products companies and numerous regional and more specialised competitors. Customer
demand is influenced by the general economic conditions and inventory levels and affects
product price levels. Product prices, which tend to be cyclical, are affected by capacity utilisation,
which decreases in times of economic slowdowns. Changes in prices differ between products
and geographic regions.
The following table shows the operating profit sensitivity to a +/- 10% change in either price or
volume for different segments based on figures for 2023.
Operating profit: Impact of changes +/- 10%, EUR million

Segments | Price | Volume
Packaging Materials | 434 | 110
Packaging Solutions | 107 | 43
Biomaterials | 143 | 52
Wood Products | 152 | 32
Forest | 246 | 6

Mitigation measures and opportunities
The ability to respond to changes in product demand and consumer preferences and to develop
new products on a competitive and economic basis calls for innovation, continuous capacity
management and structural development. The risks related to factors such as demand, price,
competition and customers are regularly monitored by each division and unit as a routine part of
business management. These risks are also continuously monitored and evaluated on a Group
level to gain a perspective of the Group’s total asset portfolio and overall long-term profitability
potential.
Stora Enso, as one of the biggest private forest owners in the world, also benefits from a
strategic renewable resource base. The Group's expertise in wood and wood based renewable
materials is focused on responding to changing customer and consumer preferences, driven by
climate change. Products based on renewable materials with a low carbon footprint help
customers and society at large to reduce CO 2 emissions by providing an alternative to solutions
based on fossil fuels or other non-renewable materials.
Sourcing
Increasing input costs or availability of materials, goods and services may adversely affect Stora
Enso’s profitability. Securing access to reliable low-cost supplies and proactively managing costs
and productivity are of key importance. Reliance on outside suppliers for energy also makes
Stora Enso susceptible to changes in energy market prices. There is also an increased risk of
disturbances in the supply chain due to cyber incidents, political instability and other drivers
related to global trade. The following table shows Stora Enso’s major cost items.
Composition of costs in 2023

Operative costs | % of costs | % of sales
Logistics and commissions | 10% | 10%
Manufacturing costs |  |
Fiber | 33% | 32%
Chemicals and fillers | 9% | 8%
Energy | 7% | 7%
Material | 10% | 9%
Personnel | 14% | 14%
Other | 11% | 11%
Depreciation | 6% | 6%
Total costs and sales | 100% | 97%
Total operative costs and sales in EUR million | 9,130 | 9,396
Associated companies, operational |  | 76
Operational EBIT (EUR million) |  | 342

In many areas Stora Enso is dependent on suppliers and their ability to deliver a product or a
service at the right time and of the right quality. The most important products are fiber, chemicals
and energy, and machinery and equipment in capital investment projects. Increased demand for
carbon neutral primary and secondary biomass fuels may increase energy costs. The most
important services are transport and various outsourced business support services. For some of
these inputs, the limited number of suppliers is a risk.
Mitigation measures and opportunities
Input cost volatility is closely monitored at the business unit, divisional and group level and a
consistent long-term energy risk management is applied. The price and supply risks are
mitigated through increased own generation, shareholding in competitive power assets such as
PVO/TVO, physical long-term contracts and financial derivatives. Stora Enso hedges price risks
in raw material and end-product markets and supports the development of financial hedging
markets. A wide range of suppliers are used and monitored to avoid situations that might
jeopardise continued production, business transactions or development projects.
Suppliers and subcontractors must also comply with Stora Enso’s sustainability requirements
as they are part of Stora Enso’s value chain. The sustainability requirements for suppliers and
audit schemes cover raw materials, and other goods and services procured. Suppliers are
assessed for risks related to environmental, social and business practices through our internal
risk assessment tool. Supplier code of conduct audits are conducted on high-risk suppliers and
findings from such audits are followed-up. Suppliers should have the possibility to mitigate, but
where necessary, the supplier contract would be terminated.
Stora Enso also has an opportunity to add value and bring innovation to its business globally
by building strong and measurable relationships with the best suppliers as well as enforcing
Unaudited 18
harmonised sourcing processes to increase capabilities, increase tender quality to reduce cost,
and develop sustainable suppliers.
Regulatory changes
Stora Enso's businesses may be affected by political or regulatory developments in any of the
countries and jurisdictions where it operates, including changes to forest, biodiversity,
environmental, fiscal, tax or other regulatory regimes. Potential impacts include higher costs and
capital expenditure to meet new requirements, the expropriation of assets, imposition of royalties
or other taxes targeted at the industry, and requirements for local ownership or beneficiation.
The EU Green Deal and its climate targets for 2030 and 2050 have resulted in a proliferation
of future legislation which have been further advanced in 2022 and may impact Stora Enso's
future operations. The policy initiatives from the European Commission will include policies and
legislation on areas such as EU Forest and Biodiversity strategies, the Renewable Energy
Directive, EU Emission Trading System (ETS), Sustainable products initiative, Packaging and
Packaging waste revision as well as EU taxonomy.
Political decisions on forest resources, could limit the availability of wood, increase costs and
reduce investment opportunities.
Stora Enso has been granted various investment subsidies and has given certain investment
commitments in different countries e.g. Finland, China and Sweden. If committed planning
conditions are not met, local officials may pursue administrative measures to reclaim some of
the formerly granted investment subsidies or to impose penalties on Stora Enso, and the
outcome of such a process could result in a negative financial impact on Stora Enso.
Mitigation measures and opportunities
Active monitoring of regulatory and political developments in the countries where Stora Enso
operates as well as participation in policy development mainly through industry associations and
other partnership programmes are important risk mitigation regarding regulatory changes.
Regulatory changes can also bring significant opportunities by driving market growth for
sustainable products and create competitive advantage through resource efficiency and
renewability.
Climate change – physical impacts
Long-term (25–30 years) changes in precipitation patterns, periods of drought, frequent extreme
weather events and higher average temperatures that increase the risk of forest fires and insect
outbreaks, could cause damage to operations, forests and tree plantations, affecting forests
asset values and regional wood prices. Milder winters could also have an impact on the
harvesting and transport of wood and related costs in northern regions. More frequent extreme
weather events also increase the risk of disruptions in the production, logistics and supply of raw
materials and energy.
During 2023, focus was on deep dives into specific physical risk impacts and further
developing transition scenarios. Read more in the following TCFD chapter, and in an index table
available at storaenso.com.
Mitigation measures and opportunities
Physical risks are to a great extent subject to risk transfer and thereby within the cover of Stora
Enso's property and business interruption insurance programs. With regards to forest and
plantation assets, Stora Enso benefits from strategic resilience through geographical
diversification within the asset portfolio. Diligent plantation planning is ensured to avoid frost
sensitive areas and R&D programmes are applied to increase tolerance to extreme
temperatures. Stora Enso maintains a diversity of forest types and structures and enforces
diversification in wood sourcing. Wood harvesting in soft soils involves the implementation of
best practices guidelines.
Nordic forests in Finland and Sweden could also benefit from increased heat summation and
longer growing seasons, leading to acceleration in forest growth with direct positive impact on the
value of own forest assets and an indirect impact related to market wood availability and costs.
Biodiversity
Stora Enso’s forestry and industrial sites impact on biodiversity. At the same time, Stora Enso’s
business depends on raw material natural capital inputs, such as wood and fresh water. These
raw materials are supported by soil quality alongside ecosystem services for bioremediation,
forest disease and pest control, and climate regulation, among others. Biodiversity loss can have
a negative impact on the value of Stora Enso’s forest assets, increase risks of shortages in wood
supply and damage reputation. Read more in the TNFD chapter, and in an index table available
at storaenso.com.
Mitigation measures and opportunities
Stora Enso is committed to achieving a net-positive impact on biodiversity in its own forests and
plantations by 2050. Biodiversity management is an integral part of Stora Enso’s forest
management practices, and the Group strive to do more than just to mitigate biodiversity loss.
Operations are supported by digitalisation as well as continuous research and innovation to
develop the forestry operations and to provide the best value to Stora Enso’s customers and
other stakeholders. The Group knows the origin of all the wood it uses, and 99% of the land that
it owns or manage is covered by forest certification schemes. Stora Enso engages in
collaboration with various stakeholders with the aim to protect ecosystems and safeguard
natural resources.
People and capabilities
Competition for personnel is intense and Stora Enso may, in the long term, not be successful in
attracting or retaining qualified personnel. The loss of key employees, the inability to attract new
or adequately trained employees, or a delay in hiring key personnel could seriously harm Stora
Enso’s business and impede reaching the Group's strategic objectives. Labour market
disruptions and strikes, especially in times of restructuring and redundancies due to divestments
and mill closures or during labour market negotiations, could also have adverse material effects
on Stora Enso's business, financial position and profitability.
Mitigation measures and opportunities
Stora Enso manages the risks and loss of key talents through a combination of different actions.
Some of the activities aim towards making the Stora Enso employer brand better known both
internally and externally, globalising some of the remuneration practices and intensifying the
efforts to identify and develop talents. Finally, the Group actively focuses on talent and
management assessments, including succession planning for key positions. The majority of
employees are represented by labour unions under several collective agreements in different
countries where Stora Enso operates, thus relations with unions are of high importance to
manage labour disruption risks.
Unaudited 19
Stora Enso recognises the opportunity of skilled and dedicated employees being essential for
success. Engaged high performing people enable the implementation of transformation strategy
and commercial success.
Personal safety – employees and wider workforce
Failure to maintain high levels of safety management can result in harm to Stora Enso’s
employees and contractors, and also to communities near our operations and the environment.
Impacts in addition to physical injury, health effects and environmental damage could include
liability to employees or third parties, damage to reputation, or an inability to attract and retain
skilled employees. Government authorities could additionally enforce the closure of our
operations on a temporary basis.
Personnel safety and security can never be compromised and, thus, Stora Enso must be
aware of potential safety risks and provide adequate guidelines to people for managing risks
related to, for example, travelling, working and living in countries with security or crime concerns.
Mitigation measures and opportunities
Stora Enso’s goal is to provide an accident-free workplace. Encouraging a group-wide safety
culture means that everyone is responsible for making every workday healthy and safe - from
top management and throughout the Group. The approach to safety extends to contractors,
suppliers, and on-site visitors. Everyone is encouraged to give feedback and provide ideas on
how to further improve safety. Additionally, safety is promoted among contractors and suppliers
through a dedicated e-learning. The Group also emphasise the importance of safety by asking
suppliers for information on their safety performance in the tendering process.
Stora Enso’s Health and Safety Policy defines the objectives for safety management, as well
as a governance model on how to manage health and safety topics in practice and how to
integrate them into annual planning and reporting.
Leading health and safety performance can potentially strengthen the brand as an employer,
as well as improved engagement, efficiency and productivity.
Physical assets
The installed capacity of Stora Enso's production facilities have an inherent risk of potential for
failure or off-specification operations, which could result in poor product quality, unplanned
production downtime, lower output or increased production costs. It may also impact the Group's
ability to meet delivery commitments and the business plan. In some instances, the risks are the
result of inherent design deficiencies, failures in the mode of operation or operating practices.
The most significant asset risks lie predominantly in integrated pulp and board production and
related energy generation.
Mitigation measures and opportunities
Protecting production assets and business results is a high priority for Stora Enso. This is
achieved through structured methods of identifying, measuring and controlling different types of
process risk and exposure. Divisional risk specialists manage this process together with
insurance companies and other loss prevention specialists. Each year a number of technical risk
inspections are carried out at production units. Risk improvement programmes and cost-benefit
analyses of proposed investments are managed via internal reporting and risk assessment tools.
Internal and external property loss prevention guidelines, fire loss control assessments, key
machinery risk assessments and specific loss prevention programmes are also utilised. Planned
stoppages for maintenance and other work are important to keep machinery in good order.
Preventive maintenance programmes and spare part criticality analyses are utilized to secure
the high availability and efficiency of key machinery.
Product safety and compliance
Some of our products are used for package liquids and food consumer products, so any defects
could affect health or packaging functions and result in costly product recalls. Wood products are
incorporated into buildings, and this may involve product liability resulting from failures in
structural design, product selection or installation. Failure to ensure product safety could result in
product recalls involving significant costs including compensation for indirect costs of customers,
and reputational damage.
Mitigation measures and opportunities
The mills producing food and drink contact products have established certified hygiene
management systems based on risk and hazard analysis. To ensure the safety of its products,
Stora Enso actively participates in CEPI (Confederation of European Paper Industry) working
groups on chemical and product safety. In addition, Stora Enso mills have certified relevant ISO
quality management systems. Furthermore, contractual liability limitation and insurance
protection are used to limit the risk exposure to Stora Enso.
The Group recognises the opportunity of differentiation and value creation through superior
product quality and the highest level of product conformity.
Information technology, security, and digitalisation
Stora Enso is dependent on IT systems for both internal and external communications and for
the day-to-day management of its operations. Information systems, personnel and facilities are
subject to cyber security risk, such as ransomware. In addition, accidental disclosure of
confidential information due to a failure to follow information handling guidelines or due to an
accident or criminal act may result in financial damage, penalties, disrupted or delayed launch of
new lines of business or ventures, loss of customer and market confidence, loss of research
secrets, breach of data privacy regulation and other business critical information.
Mitigation measures and opportunities
The management of risks is actively pursued in the Information Risk Management System and
best practice change management and project methodologies are applied. We actively work to
prevent cybercrime. A number of security controls have been implemented to strengthen the
protection of confidential information and to facilitate compliance with international regulations.
Opportunities may arise from efficient operations, performance optimisation, innovative
product offerings, and new customer services through digitisation and sophisticated IT systems,
as well as new technologies offering significant potential for higher level of process optimisation
and automatisation, generating new business and enhanced value propositions for customers
and consumers.
Unaudited 20
Strategic investments
To succeed with the implementation of its strategy, Stora Enso has to understand the needs of
its customers and find the best way to serve them with the right offering and with the right
production asset portfolio. Failure to complete strategic projects in accordance with the agreed
schedule, budget or specifications can, therefore, have serious impacts on the Group's financial
performance. Significant, unforeseen changes in costs or an inability to sell the envisaged
volumes or achieve planned price levels may prevent Stora Enso from achieving its business
goals.
Mitigation measures and opportunities
Risks are mitigated through profound and detailed pre-feasibility and feasibility studies which are
prepared for each large investment. Investment guidelines stipulate the process, governance,
risk assessment, management and monitoring procedures for strategic projects, including
climate related risk factors. The guidelines also require that the calculation of potential cost and
income for CO 2 emissions as part of the investment proposal, Environmental and Social Impact
Assessments (ESIAs) are conducted for all new projects that could cause significant adverse
effects in local communities. Post completion audits are carried out for all significant
investments.
Mergers, acquisitions, and divestments
Failure to realise the expected benefits from an acquisition of a company or asset can have
serious financial impacts on Stora Enso. The Group can also find itself liable for past acts or
omissions of the acquired business, without any adequate right of redress. Failure to achieve
expected values from the sales of assets or deliveries beyond the expected receipt of funds may
also impact the Group's financial position. Divestments or business restructuring may involve
additional costs due to historical and unaccounted liabilities as well as reputational impacts.
Mitigation measures and opportunities
Rigorous M&A guidelines, including due diligence procedures are applied to the evaluation and
execution of all acquisitions. Structured governance and policies such as the policy for
responsible right-sizing, are followed when making restructuring decisions. A strong balance
sheet and cash flow enable value enhancing M&A, when the timing and opportunity are right.
Ethics and compliance
Stora Enso operates in a highly regulated business area and is, thereby, exposed to risks related
to breach of applicable laws and regulations associated to e.g. capital markets regulation,
company and tax laws, customs, environment, human rights, and safety, as well as areas
covered by policies such as the Stora Enso Code and Business Practice Policy, e.g. fraud, anti-
trust, corruption, conflict of interests and other misconduct. Breaches may lead to high
compliance and remediation costs including prosecution costs, fines, penalties, and contractual,
financial and reputational damage.
Mitigation measures and opportunities
Stora Enso’s Ethics and Compliance Programme, which includes policy setting, promoting
values, training, knowledge sharing and grievance mechanisms, is continuously updated and
developed. Other compliance mechanisms include Stora Enso Group’s internal control system
and Internal Audit assurance, as well as Supplier Code of Conduct in supplier contracts, risk
assessments, trainings and audits. In response to capital markets regulations, Stora Enso’s
Disclosure Policy emphasises the importance of transparency, credibility, responsibility,
proactivity and interaction.
Environmental risks are minimised through environmental management systems and
environmental due diligence for acquisitions and divestments, and indemnification agreements
where effective and appropriate remediation projects are required. Special remediation projects
related to discontinued activities and mill closures are executed based on risk assessments.
Focus on ethics in a wider sense, not mere compliance with laws and regulations, promotes a
value-driven and more successful business, fosters accountability and enhances corporate
reputation.
Climate-related financial disclosures (TCFD)
The Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures
(TCFD) recommends a framework for disclosing climate-related risks and opportunities. Stora
Enso's disclosures with reference to TCFD recommendations are listed in an index table,
available for downloading at storaenso.com, with references to those locations where these
issues are addressed in the Group's annual reporting.
Scenario analysis in 2023
Aligned with the TCFD recommendations, Stora Enso utilises scenarios to assess the impacts of
climate change.
During 2023, the focus was on deep dives to specific physical risk impacts and further
developing transition scenarios.
Scenario analysis during the previous years
In 2020, Stora Enso developed a scenario analysis with the qualitative assessment of the
physical climate impacts on the Nordic forests and the Group's business until 2050. This work
was based on the Business-As-Usual scenario by the International Panel for Climate Change
(RCP 8.5 scenario) that would deliver a temperature increase of 4–5 degrees by the end of the
century. The climate change attributes considered were pests, diseases, droughts, wildfires,
floods, periods of frost, water scarcity, changes to precipitation patterns, rise in sea level and
changing temperatures. In 2021, the work with physical climate impacts continued by a deeper
analysis of measures improving resiliency of the forests against the negative impacts of global
warming. Results showed that sustainable forest management practices as well as possibilities
to monitor and to react to events such as forest fires and diseases, play an important role in
mitigating the negative impacts of climate change.
During 2021, Stora Enso assessed a business impact scenario for 2030 according to the
global transition required to limit the global average temperature increase in line with the Paris
agreement of 1.5 degrees (RCP 1.9). The work concluded that the overall transition to a low
carbon, circular bioeconomy is well aligned with Stora Enso’s strategy. The scenario work also
showed that potential new regulations and market mechanisms motivated by the ambitions to
limit climate change and its effects on the society and environment could impact Stora Enso’s
operating costs by limiting wood harvesting volumes or forest management practices as well as
increasing greenhouse gas emission costs and energy prices. Sustainable product initiatives
and requirements may also have an impact on the Group's future market access, product
demand growth and product development requirements.
During 2022, a quantitative resilience analysis was conducted for tree plantations in South
America against three global Shared Socioeconomic Pathway (SSP) scenarios: SSP1-1.9
Unaudited 21
(Sustainability – Taking the Green Road), SSP2-4.5 (Regional Rivalry – a Rocky Road) and
SSP5-8.5 (Fossil-fuelled Development – Taking the Highway). Results show a relative resilience
of Stora Enso's tree plantations in all the three scenarios. Financial impacts are not expected to
be material in SSP1-1.9 and SSP2-4.5 scenarios but in SSP5-8.5 scenario the growth conditions
of tree plantations would be affected resulting in potentially material financial impacts.
Nature-related financial disclosures (TNFD)
The Taskforce on Nature-related Financial Disclosures (TNFD) is a market-led and science-
based initiative supported by national governments, businesses, and financial institutions
worldwide. The TNFD’s mission is to help companies responding to the global acceleration of
nature loss as an increasing source of risk to businesses and providers of financial capital. The
TNFD Recommendations and Additional Guidance are there to support organisations to report
and act on evolving nature-related issues. The recommendations support the outcomes of the
agreed Kunming-Montreal Global Biodiversity Framework and hope to support a shift in global
financial flows away from businesses and business activities that lead to nature-negative
outcomes and towards those that support nature-positive outcomes. The version 1.0 of the
TNFD recommendations, published in September 2023, build on the Taskforce on Climate-
related Financial Disclosures (TCFD) recommendations and are consistent with other standards
including the International Sustainability Standards Board (ISSB), IFRS Sustainability Disclosure
Standards, the Global Reporting Initiative (GRI) and the European Sustainability Reporting
Standards (ESRS). The TNFD includes 14 recommended disclosures that extend or add to
those included in the TCFD recommendations' disclosures which support integrated climate and
nature reporting.
Stora Enso’s business depends on several raw material natural capital inputs, such as wood
and fresh water, and are supported by soil quality, alongside ecosystem services for
bioremediation, forest disease and pest control, and climate regulation, among others. The
Group's dependency on and responsibility for nature is explored, for instance, through its
Biodiversity Leadership Programme to support the Group's commitment to achieve a net positive
impact on biodiversity in Stora Enso’s own forests and plantations through active biodiversity
management to align with the society’s expectations and goals for nature positive actions. Stora
Enso expects the TNFD’s recommendations to help the Group to further evolve current nature-
related disclosures, based on building on the Group's existing processes, over the coming years.
As part of the work, Stora Enso piloted the draft TNFD recommendations and parts of the
Locate, Evaluate, Assess and Prepare (LEAP) approach by undertaking a biodiversity screening
in the supply chain of the Biomaterials division. The pilot was undertaken to help prepare for
future disclosure requirements, and anticipated investor and market interest on the potential
biodiversity risks and opportunities across the supply chain. This pilot focused on transparency
in selected chemicals, logistics and energy sub-categories of the supply-chain. High-level
findings included that the Group’s current nature-related risks included: policy and legal risks in
relation to forestry legislation, potential reputational risks and location-based risks associated
with the functioning of underpinning natural capital assets and supply chain operations.
In addition to nature-related risks, potential nature-related opportunities were also identified
including the development of nature-based solutions and recognition of the multiple nature-
related benefits associated with different types of ecosystems. The pilot provides the starting
point for further qualitative and quantitative assessments of Stora Enso's business activities and
supply chains to prioritise areas for action across the Group by applying an adapted process to
other supply chains. For further details about the pilot, please see the case study at
littleblueresearch.com.
Stora Enso has participated in the WBCSD’s TNFD pilot project 'Roadmap to Nature Positive'
which provides an analysis for forest products value chain having high impact on nature. The
Group also contributed to the development of TNFD Additional Guidance for the Forest Sector
by the WBCSD Forest Solutions Group. Stora Enso is a member of Mistra’s research
programme BIOPATH, hosted by the Swedish University of Lund, which aims to identify
pathways for efficient alignment of the financial system with the requirements of biodiversity.
As announced by the TNFD in January 2024, after the reporting date, Stora Enso has signed
up as a ‘TNFD Early Adopter’ which means that Stora Enso intend to adopt the
recommendations and publish its first TNFD-aligned report in the financial year 2024.
Corporate governance in Stora Enso
Stora Enso complies with the Finnish Corporate Governance Code 2020 issued by the
Securities Market Association (the “Code”). The Code is available at cgfinland.fi. Stora Enso also
complies with the Swedish Corporate Governance Code (“Swedish Code”), with the exception of
the deviations listed in Appendix 1 of the Corporate Governance part of this report. The
deviations are due to differences between Swedish and Finnish legislation, governance code
rules and practices, and in these cases Stora Enso follows the practice in its domicile. The
Swedish Code is issued by the Swedish Corporate Governance Board and is available at
corporategovernanceboard.se.
Legal proceedings
Contingent liabilities
Stora Enso has undertaken significant restructuring actions in recent years which have included
the divestment of companies, sale of assets and mill closures. These transactions include a risk
of possible environmental or other obligations the existence of which would be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Group. A provision has been recognised for obligations for which the related
amount can be estimated reliably and for which the related future cost is considered to be at
least probable.
Stora Enso is party to legal proceedings that arise in the ordinary course of business and
which primarily involve claims arising out of commercial law. The management does not
consider that liabilities related to such proceedings before insurance recoveries, if any, are likely
to be material to the Group’s financial condition or results of operations.
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 joint
operations 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
fine of, at the time of the decision, BRL 20 (EUR 4) million. 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 relevant authorities. In November 2008, a Federal Court suspended the
effects of the decision. No provisions have been recorded in Veracel’s or Stora Enso’s accounts
for the reforestation or the possible fine.
Unaudited 22
Changes in the Group management
Micaela Thorström was appointed EVP Legal and General Counsel and a member of the Group
Leadership Team as of 1 April 2023.
René Hansen EVP, Brand and Communications and a member of the Group Leadership
Team, left his position at Stora Enso in May 2023.
Annette Stube, Executive Vice President Sustainability, and a member of the Group
Leadership Team, left her position at Stora Enso in December 2023.
Minna Björkman, Executive Vice President Sourcing and Logistics, and a member of the
Group Leadership Team (GLT), left her position in the GLT to assume a business leadership role
in Stora Enso’s Packaging Materials division in November 2023.
Ad Smit started as Executive Vice President of the Packaging Solutions division and a
member of the Group Leadership Team in December 2023. Prior to that, he led the Business
Unit Western Europe within Stora Enso’s Packaging Solutions division.
David Ekberg left his position as Executive Vice President of the Packaging Solutions division
on 30 November 2023.
Share capital
Stora Enso Oyj’s shares are divided into A and R shares. The A and R shares entitle holders to
the same dividend but different number of votes. Each A share and every ten R shares carry one
vote at a shareholders’ meeting. However, each shareholder has at least one vote. During 2023,
a total of 7,364 A shares converted into R shares were recorded in the Finnish Trade Register.
Number of shares as at 31 December 2023

| A shares | R shares | Total
Number of shares | 176,230,916 | 612,389,071 | 788,619,987
Number of votes (at least) | 176,230,916 | 61,238,907 | 237,469,823

Board of Directors is authorised to decide on the repurchase and on the issuance of Stora Enso
R shares. The amount of shares to be issued or repurchased shall not exceed a total of
2,000,000 R shares, corresponding to approximately 0.25% of all shares and 0.33% of all R
shares.
Major shareholders as of 31 December 2023

By voting power | A shares | R shares | % of shares | % of votes
1 | Solidium Oy 1 | 62,655,036 | 21,792,540 | 10,7 % | 27,3 %
2 | FAM AB 2 | 63,123,386 | 17,000,000 | 10,2 % | 27,3 %
3 | Social Insurance Institution of Finland | 23,825,086 | — | 3,0 % | 10,0 %
4 | Ilmarinen Mutual Pension Insurance Company | 4,159,992 | 15,290,638 | 2,5 % | 2,4 %
5 | Varma Mutual Pension Insurance Company | 5,163,018 | 1,140,874 | 0,8 % | 2,2 %
6 | MP-Bolagen i Vetlanda AB | 4,885,000 | 1,000,000 | 0,7 % | 2,1 %
7 | Elo Mutual Pension Insurance Company | 2,010,000 | 9,987,000 | 1,5 % | 1,3 %
8 | Bergslaget's Healthcare Foundation | 626,269 | 1,609,483 | 0,3 % | 0,3 %
9 | The State Pension Fund | — | 5,600,000 | 0,7 % | 0,2 %
10 | The Society of Swedish Literature in Finland | — | 3,000,000 | 0,4 % | 0,1 %
11 | Avanza Pension Insurance | 142,664 | 1,372,515 | 0,2 % | 0,1 %
12 | OP Finland Fund | — | 2,549,753 | 0,3 % | 0,1 %
13 | Danske Invest Finnish Equity Fund | — | 2,435,000 | 0,3 % | 0,1 %
14 | Unionen (Swedish trade union) | — | 2,312,750 | 0,3 % | 0,1 %
15 | EVLI Finland Select Fund | — | 1,940,000 | 0,2 % | 0,1 %
| Total | 166,590,451 | 87,030,553 | 32,2 % | 73,8 %
| Nominee-registered shares 3 | 75,045,090 | 487,121,848 | 71,3 % | 52,1 %
| 1 Entirely owned by the Finnish State 2 As confirmed to Stora Enso 3 According to Euroclear Finland The list has been compiled by the Company on the basis of shareholder information obtained from Euroclear Finland, Euroclear Sweden and a database managed by Citibank, N.A (Citi). This information includes only directly registered holdings, thus certain holdings (which may be substantial) of shares held in nominee or brokerage accounts are not included. The list is therefore incomplete.

Share distribution as at 31 December 2023

By size of holding, A share 1) | Shareholders | % of shareholders | Shares | % of shares
1–100 | 7,111 | 59.83% | 273,712 | 0.16%
101–1,000 | 4,211 | 35.43% | 1,474,615 | 0.84%
1,001–10,000 | 529 | 4.45% | 1,222,373 | 0.69%
10,001–100,000 | 24 | 0.20% | 559,602 | 0.32%
100,001–1,000,000 | 2 | 0.02% | 347,113 | 0.20%
1,000,001– | 8 | 0.07% | 172,353,501 | 97.80%
Total | 11,885 | 100.00% | 176,230,916 | 100.00%
By size of holding, R share 1) | Shareholders | % of shareholders | Shares | % of shares
1–100 | 17,659 | 37.87% | 840,387 | 0.14%
101–1,000 | 22,681 | 48.64% | 8,919,537 | 1.45%
1,001–10,000 | 5,813 | 12.47% | 15,389,391 | 2.51%
10,001–100,000 | 408 | 0.88% | 10,699,825 | 1.75%
100,001–1,000,000 | 47 | 0.10% | 16,081,788 | 2.63%
1,000,001– | 23 | 0.05% | 560,458,143 | 91.53%
Total | 46,631 | 100.00% | 612,389,071 | 100.00%
1) According to Euroclear Finland. This list includes only directly registered shares in Euroclear Finland. E.g. Stora Enso's Swedish shareholders are listed under their nominee bank in this list. Therefore, this listing is not comparable with the table Major shareholders as of 31 December 2023

Unaudited 23
Ownership distribution as at 31 December 2023

| % of shares | % of votes
Solidium Oy 1 | 10.7% | 27.3%
FAM AB 2 | 10.2% | 27.3%
Social Insurance Institution of Finland (KELA) | 3.0% | 10.0%
Finnish institutions (excl. Solidium and KELA) | 11.0% | 8.1%
Swedish institutions (excl. FAM) | 1.1% | 0.9%
Finnish private shareholders | 3.9% | 2.4%
Swedish private shareholders | 3.0% | 2.2%
ADR holders | 1.6% | 0.5%
Under nominee names (non-Finnish/non-Swedish shareholders) | 55.4% | 21.3%
1 Entirely owned by the Finnish State 2 As confirmed to Stora Enso

Short-term outlook
Stora Enso expects market conditions to remain uncertain in 2024, with ongoing pressure on
demand, prices and margins. However, there are some positive signs such as increasing pulp
prices, declining global pulp inventories, less customer destocking, and lower inflation and
interest rates.
The first quarter is not expected to show a significant market improvement following a
historical low fourth quarter in 2023 and a slow recovery. All variable costs continued to ease in
the fourth quarter, except for wood, which are expected to follow similar trends also in the first
quarter this year. The potential risk of logistical challenges from the Red Sea area could disrupt
the flow of goods and increase costs.
During the second half of 2023, Stora Enso implemented significant restructuring measures
to enhance its financial performance going forward. These included the closure of sites and
production lines, the sale of assets, the adoption of a more decentralised operating model, and a
reduction of employees by approximately 1,150. These actions are expected to improve the
Group's cost competitiveness and streamline its organisation, leading to a stronger financial
performance in the years to come.
Guidance
Stora Enso's full year 2024 operational EBIT is expected to be higher than for the full year 2023,
EUR 342 million.
Short-term risks and uncertainties
Risk is characterised by both threats and opportunities, which may affect future performance and
the financial results of Stora Enso, reputation, as well as its ability to meet certain social and
environmental objectives.
The geopolitical unrest could have an adverse impact on the Group. Retaliatory measures,
conflict-related risks to people, operations, trade credit, cyber security, supply, and demand,
could also affect the Group negatively.
The risk of a prolonged global economic downturn and recession, continued high inflation, as
well as sudden interest rate increases, currency fluctuations, trade union strike actions, and
logistical chain disruptions could all adversely affect the Group’s profits, cash flow and financial
position, as well as access to material, flow of goods and transport.
The challenging and rapidly changing macroeconomic and geopolitical disruption may
increase cost, add complexity and lower short-term visibility. A slow market recovery might
further impact market demand, prices, profit margin and volumes of the Group's products. New
capacity and volume entering the market might distort demand, volumes, inventories and pricing,
with the risk of a deepening margin squeeze. Moreover, forced capacity cuts might further
impact on profitability.
There is a risk of continued high interest rates along with increased price volatility for raw
materials such as wood, chemicals, other components and energy in Europe. The continued
tight wood market could cause increased costs, limit harvesting and cause disruptions such as
delays and/or lack of wood supply to the Group's production sites.
Stora Enso has been granted various investment subsidies and has given certain investment
commitments in several countries e.g., Finland, China and Sweden. If commitments to planning
conditions are not met, local officials may pursue administrative measures to reclaim some of
the formerly granted investment subsidies or to impose penalties on Stora Enso, the outcome of
such a process could result in adverse financial impact on Stora Enso.
Sensitivity analysis
Energy sensitivity analysis: the direct effect of a 10% change in electricity and fossil fuel market
prices would have an impact of approximately EUR 5 million on operational EBIT for the next 12
months.
Wood sensitivity analysis: the direct effect of a 10% change in wood prices would have an
impact of approximately EUR 200 million on operational EBIT for the next 12 months.
Pulp sensitivity analysis: the direct effect of a 10% change in pulp market prices would have
an impact of approximately EUR 120 million on operational EBIT for the next 12 months.
Chemical and filler sensitivity analysis: the direct effect of a 10% change in chemical and filler
prices would have an impact of approximately EUR 54 million on operational EBIT for the next
12 months.
Foreign exchange rates transaction risk sensitivity analysis for the next twelve months: the
direct effect on operational EBIT of a 10% strengthening in the value of the US dollar, Swedish
krona and British pound would be approximately positive EUR 81 million, negative EUR 9 million
and positive EUR 9 million annual impact, respectively. Weakening of the currencies would have
the opposite impact. These numbers are net of hedges and assuming no changes occur other
than a single currency exchange rate movement in an exposure currency.
The Group's consolidated income statement on operational EBIT level is exposed to a
foreign-currency translation risk worth approximately EUR 179 million expense exposure in
Brazilian real (BRL) and approximately EUR 67 million income exposure in Chinese Renminbi
(CNY). These exposures arise from the foreign subsidiaries and joint operations located in Brazil
and China, respectively. For these exposures a 10% strengthening in the value of a foreign
currency would have a negative EUR 18 million and a positive EUR 7 million impact on
operational EBIT, respectively.
Annual General Meeting
Stora Enso Oyj's Annual General Meeting (AGM) will be held on Wednesday 20 March 2024 at
16:00 EET at the Marina Congress Center in Helsinki, Finland. More information is available at
storaenso.com/agm
Proposal for the dist ribution of dividend
The Board of Directors proposes to the AGM that a dividend of EUR 0.10 per share be
distributed on the basis of the balance sheet adopted for the year 2023. In addition, the Board of
Directors proposes that the AGM would authorise the Board of Directors to decide at its
Unaudited 24
discretion on the payment of an additional dividend up to a maximum of EUR 0.20 per share.
The authorisation would be valid until 31 December 2024.
The Board of Directors has assessed the Company’s financial situation and liquidity before
making the proposal. There have been no material changes in the parent company’s financial
position since 31 December 2023, the liquidity of the parent company remains good and the
proposed dividend does not risk the solvency of the Company. Stora Enso's policy is to distribute
50% of earnings per share (EPS) excluding fair valuation over the cycle. In 2023, EPS excluding
fair valuation was EUR -0.73.
The Parent company distributable shareholders’ equity on 31 December 2023 amounted to
EUR 1,542,290,968.57 including the profit for the period of EUR 44,769,653.04. The Board of
Directors proposes to the Annual General Meeting of the Company that the distributable funds
be used as follows: A dividend of EUR 0.10 per share from the distributable shareholders’ equity
to be distributed on 788,619,987 shares, not to exceed EUR 78,861,998.70, which would leave
EUR 1,463,428,969.87 in distributable shareholders’ equity.
It is proposed that the Board may at its discretion decide on a second dividend instalment of a
maximum of EUR 0.20 latest during the fourth quarter of 2024, which would lead to a further
decrease in distributable shareholders’ equity of EUR 157,723,997.40, leaving EUR
1,305,704,972.47 in distributable shareholders’ equity.
The first dividend instalment would be paid to shareholders who on the record date of the
dividend payment, 22 March 2024, are recorded in the shareholders’ register maintained by
Euroclear Finland Oy or in the separate register of shareholders maintained by Euroclear
Sweden AB for Euroclear Sweden registered shares. Dividends payable to Euroclear Sweden
registered shares will be forwarded by Euroclear Sweden AB and paid in Swedish crowns.
Dividends payable to ADR holders will be forwarded by Citibank N.A. and paid in US dollars.
The Board of Directors proposes to the AGM that the first instalment of the dividend be paid
on or about 4 April 2024.
Unaudited 25
Alternative performance measures
According to the European Securities and Markets Authority (ESMA) Guidelines, an alternative performance measure is understood as a financial measure of historical or future financial performance,
financial position, or cash flows, not defined under IFRS. Used together with the IFRS measures, alternative performance measures provide meaningful supplemental information to the management,
investors, analysts and other parties with regards to the financial development of the business operations.

Alternative performance measures | Definition | Purpose
Operating result (IFRS) | Net result for the period excluding income tax and net financial items (finance costs). | Used in combination with below measures to determine the profitability of the Group.
Operational EBIT | Operating result (IFRS) excluding items affecting comparability (IAC) and fair valuations and non-operational items (FV) of the line-by-line consolidated entities and Stora Enso’s share of operating result excluding IAC and FV of its associated companies. | The Group’s key non-IFRS performance metric, which is used to evaluate the performance of operating segments and, in combination with below ratios, to steer allocation of resources to them.
Operational EBITDA | Operating result (IFRS) excluding silviculture costs and damage to forests, fixed asset depreciation and impairment, IACs and FV. The definition includes the respective items of subsidiaries, joint arrangements and associated companies. | Used by management to analyse the business and, from time-to-time, for short term and long-term target setting.
Operational return on capital employed, operational ROCE, LTM 3 (%) | Operational EBIT 3 x 100 Capital employed 1 | Used for long-term Group financial targets setting.
Operational return on operating capital, operational ROOC, LTM 3 (%) | Operational EBIT 3 x 100 Operating capital 1 | Used for long-term divisional financial targets setting.
Return on equity, ROE, LTM 3 (%) | Net result for the period x 100 Total equity 1 | A measure of the profitability in relation to equity.
Net debt | Interest-bearing liabilities – interest-bearing assets, marked with “I” in the statement of financial position. | Used for long-term Group financial targets setting.
Net debt/equity ratio | Net debt Equity 2 | Used for long-term Group financial targets setting.
Net debt/last 12 months’ operational EBITDA ratio | Net debt LTM operational EBITDA | Used for long-term Group financial targets setting.
Earnings per share (EPS) excluding FV | Net result for the period excluding fair valuations and non-operational items after tax divided by the weighted average number of shares | Stora Enso's dividend policy is to distribute 50% of earnings per share (EPS) excluding fair valuation over the cycle.
Operating capital and capital employed | Operating capital is comprised of items marked with “O” in the statement of financial position. Capital employed = Operating capital – Net tax liabilities. Net tax liabilities are marked with "T" in the statement of financial position. | Used for long-term Group financial targets setting.
Items affecting comparability (IAC) | The most common IAC are significant capital gains and losses, impairments or impairment reversals, disposal gains and losses relating to Group companies, provisions for planned restructurings, environmental provisions, changes in depreciation due to restructuring and penalties. Items affecting comparability are normally disclosed individually if they exceed one cent per share. | Represent certain significant items, identified by the management, considered not indicative of the operating business performance due to their nature and/or frequency.
Fair valuations and non-operational items (FV) | Fair valuations and non-operational items include non-cash income and expenses related to CO 2 emission rights and liabilities, non-operational fair valuation changes of biological assets, adjustments for differences between fair value and acquisition cost of forest assets upon disposal and the Group’s share of income tax and net financial items of associated companies. Non-operational fair value changes of biological assets reflect changes made to valuation assumptions and parameters. The adjustments for differences between fair value and acquisition cost of forest assets upon disposal are a result of the fact that the cumulative non-operational fair valuation changes of disposed forest assets were included in previous periods in IFRS operating result (biological assets) and other comprehensive income (forest land) and are included in operational EBIT only at the disposal date (for non-strategic forest assets disposals). | Represent adjustments for certain items considered by the management less relevant for understanding operating business performance. These adjustments result in differences in the recognition and measurement principles applicable under IFRS.
Operational fair value change of biological assets | Operational fair value changes of biological assets contain all other fair value changes (see above about non-operational fair value changes of biological assets), mainly due to inflation and differences in actual harvesting levels compared to the harvesting plan. | The long-term value change of the growing forests is an important component of the forestry business profitability.
Cash flow from operations (non-IFRS) and Cash flow after investing activities (non-IFRS) | Cash flow from operations (non-IFRS) is equal to Net cash provided by operating activities (IFRS) before cash flows related to financial items and income taxes. Cash flow after investing activities (non-IFRS) is equal to Cash flow from operations (non-IFRS) minus cash spent on intangible assets, property, plant and equipment, and biological assets and acquisitions of associated companies. | These are measures of cash generation, working capital efficiency and capital expenditure outflows.
Capital expenditure | Capital expenditure on fixed assets includes investments in and acquisitions of tangible and intangible assets as well as internally generated assets and capitalised borrowing costs, net of any related subsidies. Capital expenditure on leased assets includes new capitalised leasing contracts. Capital expenditure on biological assets consists of acquisitions of biological assets and capitalisation of costs directly linked to growing trees in plantation forests. The cash flow impact of capital expenditure is presented in cash flow from investing activities, excluding lease capex, where the cash flow impact is based on paid lease liabilities and presented in cash flow from financing and operating activities. | A measure of the operating business investments capitalised as tangible and intangibles assets.
Fixed costs | Maintenance, personnel and other administration type of costs, excluding IAC and FV. | A measure of the costs that are less variable in nature.

1 Average for the last five quarter ends 2 Attributable to the owners of the Parent 3 Last 12 months prior to the end of reporting period
26
Changes in the calculation of operational ROCE and ROOC
Presenting return measures based on the last 12 months is an effective way to analyse the most
recent financial data on an annualised basis and is considered more suitable for tracking the
development of long-term targets.
From Q1/2023 onwards, Stora Enso presents the operational return on capital employed
(operational ROCE) based on the last 12 months prior to the end of the reporting period. This is
calculated by dividing the operational EBIT of the last 12 months with the average capital
employed. The average capital employed for the last 12 months is determined as the average of
the published capital employed of the last five quarter-ends.
Similarly, the return on operating capital (operational ROOC) for the divisions and the return
on equity (ROE) for the Group will be based on the last 12 months prior to the end of the
reporting period.
The presentation of operational ROCE, operational ROOC and ROE based on quarter or
year-to-date figures has been discontinued.
Reconciliation of key figures

EUR million | 2023 | 2022 | 2021
Operational EBIT | 342 | 1,891 | 1,528
Capital employed, average | 14,230 | 13,795 | 12,243
Operational ROCE | 2.4% | 13.7% | 12.5%
Operational EBIT excl. Forest division | 89 | 1,687 | 1,262
Capital employed excl. Forest division, average | 8,490 | 8,276 | 7,120
Operational ROCE excl. Forest division | 1.0% | 20.4% | 17.7%
Net result for the period | -431 | 1,536 | 1,268
Total equity, average | 11,413 | 11,532 | 9,730
Return on equity (ROE) | -3.8% | 13.3% | 13,0 %
Net debt | 3,167 | 1,853 | 2,309
Operational EBITDA | 989 | 2,529 | 2,184
Net debt to operational EBITDA ratio | 3.2 | 0.7 | 1.1

Earnings per share (EPS) excl. fair valuation

EUR million | 2023 | 2022 | 2021
Earnings per share (EPS) excl. FV EUR |  |  |
Net result for the period attributable to owners of the Parent | -357 | 1,550 | 1,266
FV on net result for the period attributable to owners of the Parent | 218 | 324 | 330
Net result for the period attributable to owners of the parent excl. FV | -575 | 1,225 | 936
Average number of shares | 789 | 789 | 789
Earnings per share (EPS) excl. FV EUR | -0.73 | 1.55 | 1.19

Reconciliation of operational profitability

EUR million | 2023 | 2022 | 2021
Operational EBITDA | 989 | 2,529 | 2,184
Depreciation and silviculture costs of associated companies | -11 | -11 | -11
Silviculture costs 1 | -102 | -100 | -89
Depreciation and impairment excl. IAC | -534 | -527 | -555
Operational EBIT | 342 | 1,891 | 1,528
Fair valuations and non-operational items | 231 | 363 | 394
Items affecting comparability (IAC) | -895 | -245 | -354
Operating result (IFRS) | -322 | 2,009 | 1,568

1 Including damages to forests
Segment share of operational EBIT, IAC, fair valuations and non-operational items and
operating profit/loss

| Operational EBIT | IAC, fair valuations and non-operational items | Operating profit/loss
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Packaging Materials | -57 | 655 | -585 | -2 | -642 | 653
Packaging Solutions | 43 | 16 | -27 | -98 | 17 | -81
Biomaterials | 118 | 687 | -199 | -19 | -81 | 668
Wood Products | -64 | 309 | -22 | -56 | -86 | 253
Forest | 253 | 204 | 208 | 319 | 461 | 523
Other | 1 | 63 | -42 | -27 | -41 | 36
Total | 342 | 1,891 | -664 | 118 | -322 | 2,009
Net financial items |  |  | -173 | -151
Profit before Tax |  |  | -495 | 1,858
Income tax expense |  |  | 64 | -322
Net Profit |  |  | -431 | 1,536

27
Items affecting comparability in 2023

EUR million | 2023
Impairments - Packaging Materials | -468
Impairments - Biomaterials | -103
Impairments - Wood Products | -16
Impairments - Segment Other | -14
Impairment reversal - Forest | 5
Disposal of Nymölla | -30
Disposal of Hylte | -45
Disposal of Maxau | 52
Disposal of biocomposite business | -15
Disposal of Wood Products DIY unit | -4
Disposals related transaction costs | -6
Acquisition of De Jong Packaging Group | -16
Closure of Sunila pulp mill | -116
Closure of De Hoop | -79
Restructuring - Anjala | -26
Restructuring - Packaging Materials | -21
Restructuring - Packaging Solutions | -10
Restructuring - Wood Products | -5
Restructuring - Biomaterials | -4
Restructuring - Group functions | -15
Restructuring (2021 announced) - Kvarnsveden | 29
Restructuring (2021 announced) - Veitsiluoto | 9
Updates in environmental provisions | -5
Other items | -2
Total | -895

Items affecting comp arability in 2 022

EUR million | 2022
Disposal of Russian operations - Packaging Solutions | -93
Disposal of Russian operations - Wood Products | -56
Disposal of Russian operations - Forest | -43
Disposal of Russian operations - other divisions | -6
Impairments, transaction costs and other items related to the upcoming paper site disposals (Nymölla, Hylte and Maxau) | -28
Disposal of Kvarnsveden site | 8
Impairments - Forest | -5
Impairments - Segment Other | -2
Restructuring (2021 announced) - Kvarnsveden | 13
Restructuring (2021 announced) - Veitsiluoto | -10
Restructuring - Packaging Materials | -4
Restructuring - Packaging Solutions | -5
Restructuring - Biomaterials | -4
Updates in environmental provisions (mainly closed Finnish sites | -13
Other items | -3
Total | -245

Fair valuations and non-operational items in 2023 and 2022

EUR million | 2023 | 2022
Non-operational fair valuation changes of biological assets, Packaging Materials | 12 | 7
Non-operational fair valuation changes of biological assets, Biomaterials | 25 | -17
Non-operational fair valuation changes of biological assets, Forest | 156 | 201
Non-cash income and expenses related to CO 2 emission rights and liabilities, Other | -13 | 6
Non-operational items of associated companies, Forest | 56 | 169
Adjustments for differences between fair value and acquisition cost of forest assets upon disposal, Forest | -5 | -3
Total | 231 | 363

Calculation of net debt

EUR million | 31 Dec 2023 | 31 Dec 2022
Listed securities | 9 | 8
Non-current interest-bearing receivables | 76 | 120
Current interest-bearing receivables | 64 | 77
Cash and cash equivalents | 2,464 | 1,917
Interest-bearing assets | 2,613 | 2,122
Non-current interest-bearing liabilities | 4,446 | 2,792
Current portion of non-current debt | 286 | 667
Current interest-bearing liabilities | 476 | 513
Interest-bearing liabilities held-for-sale | 571 | 4
Interest-bearing liabilities | 5,780 | 3,976
Net debt | 3,167 | 1,853

28
Consolidated financial statements
Consolidated income statement

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Sales | 2.1 | 9,396 | 11,680
Other operating income | 2.2 | 378 | 326
Changes in inventories of finished goods and work in progress |  | -209 | 258
Materials and services |  | -6,133 | -6,979
Freight and sales commissions |  | -883 | -1,148
Personnel expenses | 3.1 | -1,275 | -1,315
Other operating expenses | 2.2 | -638 | -594
Share of results of associated companies | 4.3 | 136 | 221
Change in net value of biological assets | 4.2 | 209 | 195
Depreciation, amortisation and impairment charges | 2.3 | -1,303 | -635
Operating result | 2.1 | -322 | 2,009
Financial income | 2.4 | 91 | 40
Financial expense | 2.4 | -264 | -191
Result before Tax |  | -495 | 1,858
Income tax | 2.5 | 64 | -322
Net result for the year |  | -431 | 1,536
Attributable to |  |  |
Owners of the Parent | 5.5 | -357 | 1,550
Non-controlling Interests | 5.7 | -74 | -13
Net result for the year |  | -431 | 1,536
Earnings per share |  |  |
Basic earnings per share, EUR | 2.6 | -0.45 | 1.97
Diluted earnings per share, EUR | 2.6 | -0.45 | 1.96

Consolidated statement of comprehensive income

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Net result for the year |  | -431 | 1,536
Other Comprehensive Income (OCI) |  |  |
Items that will not be reclassified to profit and loss |  |  |
Equity instruments at fair value through OCI | 4.4 | -645 | 519
Actuarial gains and losses on defined benefit plans | 3.3 | -52 | 147
Revaluation of forest land | 4.2 | -49 | 259
Share of OCI of associated companies | 4.3 | -23 | 58
Income tax relating to items that will not be reclassified | 2.5 | 22 | -77
|  | -748 | 906
Items that may be reclassified subsequently to profit and loss |  |  |
Cumulative translation adjustment (CTA) | 5.6 | 56 | -197
Net investment hedges and loans | 5.6 | -15 | -27
Cash flow hedges and cost of hedging | 5.4 | -1 | 52
Share of OCI of non-controlling interests (NCI) | 5.7 | 5 | 0
Income tax relating to items that may be reclassified | 2.5 | -1 | -6
|  | 44 | -177
Total comprehensive income |  | -1,135 | 2,265
Attributable to |  |  |
Owners of the Parent |  | -1,066 | 2,278
Non-controlling interests | 5.7 | -69 | -13
Total comprehensive income |  | -1,135 | 2,265
The accompanying Notes are an integral part of these consolidated financial statements.

29
Consolidated statement of financial position

|  |  | As at 31 December
EUR million |  | Note | 2023 | 2022
Assets |  |  |  |
Goodwill | O | 4.1 | 505 | 244
Other intangible assets | O | 4.1 | 283 | 121
Property, plant and equipment | O | 4.1 | 4,544 | 4,860
Right-of-use assets | O | 4.1 | 323 | 418
|  |  | 5,656 | 5,643
Forest assets | O | 4.2 | 6,921 | 6,846
Biological assets | O | 4.2 | 4,652 | 4,531
Forest land | O | 4.2 | 2,269 | 2,315
Emission rights | O | 4.5 | 108 | 123
Investments in associated companies | O | 4.3 | 926 | 832
Listed securities | I | 4.4 | 9 | 8
Unlisted securities | O | 4.4 | 810 | 1,437
Non-current interest-bearing receivables | I | 5.3 | 76 | 120
Deferred tax assets | T | 2.5 | 134 | 74
Other non-current assets | O | 4.5 | 58 | 38
Non-current assets |  |  | 14,699 | 15,120
Inventories | O | 4.6 | 1,466 | 1,810
Tax receivables | T |  | 31 | 11
Operative receivables | O | 4.7 | 1,191 | 1,473
Interest-bearing receivables | I | 5.3 | 64 | 77
Cash and cash equivalents | I |  | 2,464 | 1,917
Current assets |  |  | 5,216 | 5,287
Assets held for sale |  | 6.1 | 839 | 514
Total assets |  |  | 20,754 | 20,922

|  |  | As at 31 December
EUR million |  | Note | 2023 | 2022
Equity and liabilities |  |  |  |
Share capital |  | 5.5 | 1,342 | 1,342
Share premium |  |  | 77 | 77
Invested non-restricted equity fund |  |  | 633 | 633
Fair value reserve |  |  | 2,293 | 3,002
Cumulative translation adjustment |  | 5.6 | -375 | -415
Retained earnings |  |  | 7,015 | 7,893
Equity attributable to owners of the Parent |  |  | 10,985 | 12,532
Non-controlling Interests |  | 5.7 | -97 | -30
Total equity |  |  | 10,889 | 12,502
Post-employment benefit obligations | O | 3.3 | 217 | 159
Provisions | O | 4.9 | 83 | 81
Deferred tax liabilities | T | 2.5 | 1,433 | 1,443
Non-current interest-bearing liabilities | I | 5.3 | 4,446 | 2,792
Non-current operative liabilities | O | 4.8 | 11 | 11
Non-current liabilities |  |  | 6,190 | 4,486
Current portion of non-current debt | I | 5.3 | 286 | 667
Interest-bearing liabilities | I | 5.3 | 476 | 513
Provisions | O | 4.9 | 85 | 43
Operative liabilities | O | 4.8 | 2,112 | 2,410
Tax liabilities | T | 2.5 | 45 | 64
Current liabilities |  |  | 3,004 | 3,697
Liabilities related to assets held for sale |  | 6.1 | 671 | 237
Total liabilities |  |  | 9,865 | 8,419
Total equity and liabilities |  |  | 20,754 | 20,922
Items designated "O" comprise Operating Capital, items designated "I" comprise Interest-bearing Net Liabilities, items designated "T" comprise Net Tax Liabilities. The accompanying Notes are an integral part of these consolidated financial statements.

30
Consolidated cash flow statement

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Cash flow from operating activities |  |  |
Net result for the year |  | -431 | 1,536
Adjustments and reversal of non-cash items: |  |  |
Taxes | 2.5 | -64 | 322
Depreciation and impairment charges | 2.3 | 1,303 | 635
Change in value of biological assets | 4.2 | -209 | -195
Change in fair value of share awards |  | -2 | 7
Share of results of associated companies | 4.3 | -136 | -221
CTA and profits and losses on sale of fixed assets and investments 1 | 2.2 | -20 | 52
Net financial items | 2.4 | 173 | 151
Other adjustments |  | 16 | 22
Dividends received from associated companies | 4.3 | 25 | 25
Interest received |  | 64 | 13
Interest paid |  | -149 | -119
Other financial items, net |  | -31 | -7
Income taxes paid | 2.5 | -85 | -178
Change in net working capital, net of businesses acquired or sold |  | 300 | -461
Net cash provided by operating activities |  | 752 | 1,582
Cash flow from investing activities |  |  |
Acquisition of subsidiary shares and business operations, net of acquired cash | 6.1 | -584 | 0
Acquisition of shares in associated companies | 4.3 | -5 | -7
Acquisition of unlisted securities | 4.4 | -18 | -11
Cash flow on disposal of subsidiary shares and business operations, net of disposed cash | 6.1 | 237 | -77
Cash flow on disposal of shares in associated companies | 4.3 | 0 | 10
Cash flow on disposal of intangible assets and property, plant and equipment | 4.1 | 47 | 17
Capital expenditure | 2.1, 4.1 | -897 | -603
Investment in biological assets | 4.2 | -92 | -101
Proceeds from/payment of non-current receivables, net |  | -1 | 31
Net cash used in investing activities |  | -1,313 | -742

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Cash flow from financing activities |  |  |
Proceeds from issue of new long-term debt | 5.3 | 2,006 | 366
Repayment of long-term debt and lease liabilities | 5.3 | -716 | -390
Change in short-term interest-bearing liabilities | 5.3 | 272 | 9
Dividends paid |  | -472 | -434
Purchase of own shares |  | -6 | -1
Net cash used in financing activities |  | 1,084 | -450
Net change in cash and cash equivalents |  | 523 | 389
Translation adjustment |  | 24 | 48
Net cash and cash equivalents at beginning of year |  | 1,917 | 1,480
Net cash and cash equivalents at year end |  | 2,464 | 1,917
Cash and cash equivalents at year end 2 |  | 2,464 | 1,917
Bank overdrafts at year end |  | 0 | 0
Net cash and cash equivalents at year end |  | 2,464 | 1,917
1 CTA = Cumulative Translation Adjustment 2 Cash and cash equivalents comprise cash-in-hand, deposits held at call with banks and other liquid investments with original maturity of less than three months. Bank overdrafts are included in current liabilities. The accompanying Notes are an integral part of these consolidated financial statements.

31
Consolidated cash flow statement
Supplemental cash flow information

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Change in net working capital consists of: |  |  |
Change in inventories |  | 328 | -454
Change in interest-free receivables: |  |  |
Current |  | 347 | -165
Non-current |  | -19 | -1
Change in interest-free liabilities: |  |  |
Current |  | -355 | 163
Non-current |  | -2 | -3
Change in net working capital, net of businesses acquired or sold |  | 300 | -461
Cash and cash equivalents consist of: |  |  |
Cash on hand and at banks |  | 825 | 1,272
Cash equivalents |  | 1,639 | 646
Cash and cash equivalents |  | 2,464 | 1,917
Non-cash investing activities |  |  |
Total capital expenditure excluding right-of-use assets |  | 946 | 656
Amounts paid |  | -897 | -603
Non-cash part of additions to intangible assets and property, plant and equipment |  | 49 | 53
Cash flow on acquisitions of subsidiaries and business operations |  |  |
Purchase consideration on acquisitions, cash part | 6.1 | -612 | 0
Cash and cash equivalents in acquired companies, net of bank overdraft | 6.1 | 27 | 0
Net cash flow on acquisition |  | -584 | 0
Cash flow on disposals of subsidiaries and business operations |  |  |
Cash part of the consideration | 6.1 | 266 | 13
Cash and cash equivalents in divested companies | 6.1 | -29 | -90
Net cash flow from disposal |  | 237 | -77
The accompanying Notes are an integral part of these consolidated financial statements.

32
Statement of changes in equity

|  |  |  |  | Fair value reserve |  |  |  |  |
EUR million | Share capital | Share premium and reserve fund | Invested non- restricted equity fund | Treasury shares | Equity instruments through OCI | Cash flow hedges | Revaluation reserve | OCI of associated companies | CTA and net investment hedges and loans | Retained earnings | Attributable to owners of the parent | Non- controlling interests | Total
Balance at 1 January 2022 | 1,342 | 77 | 633 | — | 778 | -4 | 1,373 | 29 | -195 | 6,650 | 10,683 | -16 | 10,666
Net result for the year | — | — | — | — | — | — | — | — | — | 1,550 | 1,550 | -13 | 1,536
OCI before tax | — | — | — | — | 519 | 52 | 259 | 58 | -224 | 147 | 812 | — | 812
Income tax relating to OCI | — | — | — | — | 1 | -9 | -53 | — | 3 | -25 | -83 | — | -83
Total Comprehensive Income | — | — | — | — | 520 | 43 | 206 | 58 | -220 | 1,672 | 2,278 | -13 | 2,265
Dividend | — | — | — | — | — | — | — | — | — | -434 | -434 | — | -434
Acquisitions and disposals | — | — | — | — | — | — | — | — | — | — | — | — | —
Purchase of treasury shares | — | — | — | -1 | — | — | — | — | — | — | -1 | — | -1
Share-based payments | — | — | — | 1 | — | — | — | — | — | 5 | 6 | — | 6
Balance at 31 December 2022 | 1,342 | 77 | 633 | — | 1,298 | 39 | 1,579 | 87 | -415 | 7,893 | 12,532 | -30 | 12,502
Net result for the year | — | — | — | — | — | — | — | — | — | -357 | -357 | -74 | -431
OCI before tax | — | — | — | — | -645 | -1 | -49 | -23 | 41 | -52 | -730 | 5 | -726
Income tax relating to OCI | — | — | — | — | — | — | 10 | — | — | 12 | 22 | — | 22
Total Comprehensive Income | — | — | — | — | -645 | -1 | -39 | -23 | 41 | -397 | -1,066 | -69 | -1,135
Dividend | — | — | — | — | — | — | — | — | — | -473 | -473 | — | -473
Acquisitions and disposals | — | — | — | — | — | — | — | — | — | — | — | 2 | 2
Purchase of treasury shares | — | — | — | -6 | — | — | — | — | — | — | -6 | — | -6
Share-based payments | — | — | — | 6 | — | — | — | — | — | -8 | -2 | — | -2
Balance at 31 December 2023 | 1,342 | 77 | 633 | — | 653 | 38 | 1,540 | 63 | -375 | 7,015 | 10,985 | -97 | 10,889
CTA = Cumulative Translation Adjustment, NCI = Non-controlling Interests, OCI = Other Comprehensive Income

33
Notes to the consolidated financial statements
1 Basis for reporting
1.1 Accounting principles
Principal activities
Stora Enso Oyj (“the Company”) is a Finnish
public limited liability company organised
under the laws of the Republic of Finland
and with its registered address at
Salmisaarenaukio 2, 00180 Helsink i. Its
shares are currently listed on Nasdaq
Helsinki and Stockholm. The operations of
Stora Enso Oyj and its subsidiaries (together
“Stora Enso” or “the Group”) are organised
into the following reportable segments:
Packaging Materials, Packaging Solutions,
Biomaterials, Wood Products, Forest and
segment Other. The Group’s main market is
Europe.
The Financial Statements were
authorised for issue by the Board of
Directors on 31 January 2024.
Basis of preparation
The consolidated financial statements of
Stora Enso have been prepared in
accordance with IFRS Accounting Standards
as adopted by the European Union. The
consolidated financial statements of Stora
Enso have been prepared according to the
historical cost convention, except as
disclosed in the accounting policies. The
detailed accounting principles are explained
in the related notes with a few exceptions
where the accounting principles are
presented in this note. The consolidated
financial statements are presented in euros,
which is the parent company’s functional
currency.
All figures in these consolidated financial
statements have been rounded to the
nearest million, unless otherwise stated.
Therefore, figures in this report may not add
up precisely to the totals presented and may
vary from previously published financial
information.
New and amended standards and
interpretations adopted in 2023
The Group has applied the following new
and amended standards and interpretations
which are effective from 1 January 2023:
• Amendments to IAS 1 Presentation of
Financial Statements: Disclosure of
Accounting policies. The amendment
requires entities to disclose their material
accounting policy information rather than
their significant accounting policies. The
effective date is 1 January 2023. The
amendment had a minor impact on the
disclosures.
• Amendments to IAS 8 Accounting
policies, Changes in Accounting
Estimates and Errors: Definition of
Accounting Estimates. The amendments
introduce the definition of accounting
estimates and includes other
amendments to IAS 8 to help entities
distinguish changes in accounting
estimates from changes in accounting
policies. The effective date is 1 January
2023. The amendment did not have a
significant impact on the Group.
• Amendments to IAS 12 Income Taxes:
Deferred Tax related to Assets and
Liabilities arising from a Single
Transaction. The amendments clarify how
entities account for deferred tax on
transactions such as leases and
decommissioning obligations. The main
change is related to the initial recognition
exemption and is in accordance with the
amendment; the initial recognition
exemption does not apply to transactions
in which equal amounts of deductible and
taxable temporary differences arise on
initial recognition. The effective date is 1
January 2023. The amendment did not
have a significant impact on the Group.
• Amendment to IAS 12 Income taxes:
Pillar Two rules. The amendment includes
1) a mandatory temporary exception to
IAS 12 meaning that an entity does not
recognise or disclose information about
deferred tax assets and liabilities related
to Pillar Two, and a requirement to
disclose that the exception has been
applied; 2) a requirement to disclose
separately the current tax expense
(income) related to Pillar Two; and 3) for
periods in which Pillar Two legislation is
enacted or substantively enacted, but not
yet in effect, a requirement to disclose the
known or reasonably estimable
information about the entity’s exposure to
Pillar Two income taxes. The effective
date is 1 January 2023. The Group has
applied the exception and provides an
estimate of the impact of Pillar Two in
note 2.5 Income taxes.
• Other standards, standard amendments
and interpretations did not have any
significant impact on the Group's
consolidated financial statements or
disclosures.
Changes in segment reporting
Due to the divestments and reorganisation of
retained Paper division operations, Stora
Enso's segment reporting was changed as of
1 January 2023. The Paper division was
discontinued and not reported as a separate
segment from 1 January 2023 onwards. The
paper sites divested in 2023 (M axau,
Nymölla and Hylte) t ogether with all
previously sold and closed sites are reported
as part of the segment Other. The retained
sites Langerbrugge and Anjala are reported
as part of the Packaging Materials division.
As of 1 January 2023, emerging business
related units in the Packaging Solutions
division were moved to the segment Other.
These units include Formed Fiber, Circular
Solutions (biocomposites) and Selfly Store.
The comparative figures have been
restated accordingly. As of 1 January 2023,
the reportable segments are Packaging
Materials, Packaging Solutions, Biomaterials,
Wood Products, Forest, and segment Other.
Consolidation principles
The consolidated financial statements
include the parent company, Stora Enso Oyj,
and all companies controlled by the Group.
Control is defined as when the Group:
• has power over the investee,
• is exposed, or has rights, to variable
returns from its involvement with the
investee; and
• has the ability to use its power to affect its
returns.
If facts and circumstances indicate that there
are changes to the three elements of control
listed above the Group reassess whether or
not it controls an investee. Acquired
companies are accounted for under the
acquisition method whereby they are
included in the consolidated financial
statements from the date the control over the
subsidiary is obtained, whereas, conversely,
disposed companies are included up to the
date when the control is lost. The
subsidiaries and joint operations are listed in
note 6.2 Group companies.
All intercompany transactions,
receivables, liabilities and unrealised profits,
34
as well as intragroup profit distributions, are
eliminated. Accounting policies for
subsidiaries, joint arrangements and
associated companies are adjusted where
necessary to ensure consistency with the
policies adopted by Stora Enso.
Associated companies over which Stora
Enso exercises significant influence are
accounted for by using the equity method.
These companies are investments in which
the Group has significant influence, but
which it does not control. Significant
influence means the power to participate in
the financial and operating policy decisions
of the company without control or joint
control over those policies. More detailed
information is presented in note 4.3
Associates.
Joint control is the contractually agreed
sharing of control of the joint arrangement,
which exists only when decisions on relevant
activities require the unanimous consent of
the parties sharing control. Joint operations
are joint arrangements, whereby the partners
who have joint control of the arrangement
have rights to the assets, and obligations for
the liabilities, relating to the arrangement.
Joint ventures are joint arrangements,
whereby the partners who have joint control
of the arrangement have rights to the net
assets of the joint arrangement.
The Group has two joint o perations,
Veracel and Montes del Plata. In both
companies, Stora Enso’s ownership is 50%.
The arrangements are based on
shareholders’ agreements, which give Stora
Enso rights to a share of returns and make
the Group indirectly liable for the liabilities,
as its ability to pay for the pulp is used to
finance debts. In relation to its interest in joint
operations, the Group recognises its share of
assets, liabilities, revenues, expenses and
cash flows of the joint operation. The share is
determined based on rights to the assets and
obligations for the liabilities of each joint
operator.
• Veracel is a jointly owned company of
Stora Enso and Suzano located in Brazil.
The pulp mill produces 1.2 million tonnes
of bleached eucalyptus hard wood pulp
per year and both owners are entitled to
half of the mill’s output. The eucalyptus is
sourced mostly from the company’s own
forest plantations. The mill commenced
production in 2005.
• Montes del Plata is a jointly owned
company of Stora Enso and Arauco
located in Uruguay. The Montes del Plata
Pulp Mill’s annual capacity is 1.4 million
tonnes of bleached eucalyptus hard wood
pulp and Stora Enso’s part, 0.7 million
tonnes, is sold entirely as market pulp.
The eucalyptus is sourced mostly from
the company’s own forest plantations. The
mill commenced production in 2014.
Revenue recognition
Sales comprise products, raw materials and
services less indirect sales tax and
discounts, and are adjusted for cash flow
hedging result on sales in foreign currencies.
Sales are recognised after Stora Enso has
transferred the control of goods and services
to a customer and the Group retains neither
a continuing right to dispose of the goods,
nor effective control of those goods; usually,
this means that sales are recorded upon the
delivery of goods to customers in
accordance with the agreed terms of
delivery.
Stora Enso’s terms of delivery are based
on Incoterms 2020, which are the official
rules for the interpretation of trade terms as
issued by the International Chamber of
Commerce (ICC). The main categories of the
terms covering Group sales are:
• “D” terms, under which the group is
obliged to deliver the goods to the buyer
at the agreed place in the manner
specified in the chosen rule, in which case
the point of sale is the moment of delivery
to the buyer.
• “C” terms, whereby the Group arranges
and pays for the external carriage and
certain other costs, though the Group
ceases to be responsible for the goods
once they have been handed over to the
carrier in accordance with the relevant
term. The point of sale is thus the handing
over of the goods to the carrier contracted
by the seller for the carriage to the agreed
destination.
• “F” terms, being where the buyer
arranges and pays for the carriage, thus
the point of sale is the handing over of the
goods to the carrier contracted by the
buyer at the agreed point.
Where local rules may result in invoices
being raised in advance of the above, the
effect of this revenue advancement is
quantified, and an adjustment is made
accordingly. Stora Enso’s sales mainly
comprise sales of products and the revenue
is typically recognised at a point in time when
Stora Enso transfers control of these
products to a customer. Revenues from
services are recognised over time once the
service has been performed. More detailed
information regarding Stora Enso's principal
activities from which the Group generates its
revenue and disaggregation of revenue is
presented in note 2.1 Segment information.
Foreign currency transactions
Transactions in foreign currencies are
recorded at the rate of exchange prevailing
at the transaction date, but at the end of the
month foreign-currency-denominated
receivables and liabilities are translated
using the month-end exchange rate. Foreign
exchange differences for operating items are
presented in the appropriate income
statement line in the operating profit, and, for
financial assets and liabilities, they are
presented in the financial items in the
consolidated income statement, except when
deferred in equity as qualifying cash flow
hedges, net investment hedges or net
investment loans. Translation differences on
non-monetary financial assets, such as
equities classified at fair value through other
comprehensive income (FVTOCI), are
included in equity.
Foreign currency translations
The income statements of Group companies
with functional and presentational currencies
other than the euro are translated into the
Group reporting currency using the average
exchange rates of the year, whereas the
statements of the financial position of these
companies are translated using the
exchange rates at the reporting date. The
Group is exposed to currency risks arising
from exchange rate fluctuations on the value
of its net investment in non-euro foreign
entities. Exchange differences arising from
the retranslation of net investments in foreign
entities that are non-euro foreign
subsidiaries, joint operations or associated
companies and of financial instruments that
are designated to hedge such investments,
are recorded directly in equity as cumulative
translation adjustment (CTA). See note 5.6
Cumulative translation adjustment and equity
hedging for more details.
Future standard changes endorsed
by the EU but not yet effective in
2023
• Amendments to IAS 1 Presentation of
Financial Statements: Information about
long-term debt with covenants. IAS 1
requires a company to classify debt as
non-current only if the company can avoid
settling the debt in the 12 months after the
reporting date. However, a company’s
ability to do so is often subject to
complying with covenants. The
amendments specify that covenants to be
complied with after the reporting date do
not affect the classification of debt as
current or non-current at the reporting
date. Instead, the amendments require a
company to disclose information about
these covenants in the notes to the
financial statements. The effective date is
1 January 2024. The Group is evaluating
the impact of the amendments and
expects that the amendment does not
have significant impact.
35
• Amendments to IAS 1 Presentation of
Financial Statements: Classification of
liabilities as current or non-current. The
amendments clarify a criterion for
classifying a liability as non-current. The
amendments specify that an entity’s right
to defer settlement must exist at the end
of the reporting period; clarify that
classification is unaffected by
management’s intentions or expectations
about whether the entity will exercise its
right to defer settlement; clarify how
lending conditions affect classification;
and clarify requirements for classifying
liabilities an entity will or may settle by
issuing its own equity instruments. The
effective date is 1 January 2024. The
Group is evaluating the impact of the
amendment and expects that the
amendment does not have significant
impact.
• Amendments to IFRS 16 Leases: Lease
Liability in Sale and Leaseback.
Amendment requires a seller-lessee to
subsequently measure lease liabilities
arising from a leaseback in a way that it
does not recognise any amount of the
gain or loss that relates to the right of use
it retains. The new requirements do not
prevent a seller-lessee from recognising
in profit or loss any gain or loss relating to
the partial or full termination of a lease.
The effective date is 1 January 2024. The
Group expects that the amendment does
not have a significant impact.
• No other published standards, standard
amendments or interpretations which
would be expected to have any significant
impact on the Group’s consolidated
financial statements or disclosures.
Future standard changes not yet
effective and not yet endorsed by the
EU in 2023
• Amendments to IAS 7 Statement of Cash
Flows and IFRS 7 Financial Instruments:
Disclosures: Supplier Finance
Arrangements. The amendments require
entities to add disclosure requirements,
and ‘signposts’ within existing disclosure
requirements that ask entities to provide
qualitative and quantitative information
about supplier finance arrangements. The
effective date is 1 January 2024. The
Group is engaged in supply chain
financing and is evaluating the impact of
the amendment and expects that the
amendment will result in additional
disclosures in the notes of the
consolidated financial statements.
• Amendments to IAS 21 The Effects of
Changes in Foreign Exchange Rates:
Lack of Exchangeability. The amendment
contains guidance to specify when a
currency is exchangeable and how to
determine the exchange rate when it is
not. The effective date is 1 January 2025.
The Group expects that the amendment
does not have a significant impact.
• Other published standards, standard
amendments or interpretations are not
expected to have any significant impact
on the Group’s consolidated financial
statements or disclosures.
1.2 Critical accounting
estimates and judgements
The preparation of consolidated financial
statements in accordance with IFRS requires
management to make estimates, judgements
and assumptions that affect the reported
assets and liabilities, as well as the
disclosure of contingent assets and liabilities
at the reporting date and the reported
revenues and expenses during the period.
These estimates, judgments and
assumptions might have a significant impact
on the amounts recognised in the
consolidated financial statements. The
estimates are based on historical experience
and various other assumptions that are
believed to be reasonable and reflect
management's best estimates, though actual
result and timing could differ from these. The
estimates, judgements and assumptions are
reviewed regularly and updated if there are
changes in circumstances or as a result of
new information. The accounting items
presented below represent those matters
which include the most estimation
uncertainty and exercise of judgement.
Property, plant and equipment,
intangible assets and right-of-use
assets
The carrying amounts of property, plant and
equipment and intangible assets and right-of-
use assets are assessed at each reporting
date to determine whether there is any
indication that an asset may be impaired. If
an indicator of impairment exists, the asset's
recoverable amount is determined and
compared with its carrying amount. The
recoverable amount of an asset is estimated
as the higher of fair value less the cost of
disposal and the value in use, and an
impairment charge is recognised whenever
the carrying amount exceeds the recoverable
amount. The value in use is calculated using
a discounted cash flow method which is most
sensitive to the discount rate as well as the
expected future cash flows. The key
assumptions used in the impairment testing,
are explained further in note 2.3
Depreciation, amortisation and impairment
charges.
Management believes that the assigned
values and useful lives, as well as the
underlying assumptions, are reasonable,
though different assumptions and assigned
useful lives could have a significant impact
on the reported amounts. For material
intangible assets and property, plant and
equipment in an acquisition, an external
advisor makes a fair valuation of the
acquired intangible assets and property,
plant and equipment and assists in
determining their remaining useful life.
Goodwill
Goodwill is tested per cash generating unit
(CGU) or by a group of CGUs at least on an
annual basis and recoverable amount is
determined as the higher of fair value less
cost to sell and their value in use (discounted
cash flow method). Impairment is recognised
if the carrying amount exceeds the
recoverable amount. The discounted cash
flow method uses future projections of cash
flows from each of the reporting units in a
CGU or a group of CGUs and includes,
among other estimates, projections of future
product pricing, production levels, product
costs, market supply and demand, projected
capital expenditures and an assumption of
the weighted average cost of capital. The
discount rates used reflect the best estimate
of the weighted average cost of capital.
The Group has evaluated the most
sensitive estimates and assumptions, which,
when changed, could have a material impact
on the valuation of the assets including
goodwill and, therefore, could lead to an
impairment. These estimates and
assumptions are expected sales prices,
expected operating costs and the discount
rate. The key assumptions used in the
impairment testing are presented in note 2.3
Depreciation, amortisation and impairment
charges.
Leases
When assessing the lease term and if an
extension or renewal options are included or
not, the Group considers all relevant facts,
circumstances and incentives that might
have an impact on the assessment. Options
to extend or renew the lease are included in
the lease term only if it is reasonably certain
that Stora Enso will exercise the option. The
Group will do a reassessment, for example
upon changes in circumstances, receiving
new information or an occurrence of a
significant event that is within the control of
the lessee and might have an impact on the
assessment. See note 4.1 Intangible assets,
property, plant and equipment and right-of-
36
use assets for more details about right-of-
use assets and note 5.3 Interest-bearing
assets and liabilities for more details about
lease liabilities.
Biological assets
The Group has biological assets in
subsidiaries, joint operations and associated
company. Biological assets, in the form of
standing trees, are measured at fair value
less the costs to sell. Fair value is
determined by using discounted cash flows
from continuous operations based on
sustainable forest management plans taking
into account the growth potential of one
cycle. These discounted cash flows require
estimates of growth, harvesting, sales price,
costs and discount rate. In determining the
fair value of biological assets, the
management needs to make estimates of
future price levels and trends for sales and
costs, and to undertake regular surveys of
the forest to establish the volumes of wood
available for harvesting and their current
growth rates.
See next chapter for estimates and
judgement applied in valuation of Nordic
forest assets and note 4.2 Forest assets for
more detailed information about Nordic and
plantation forest assets.
Nordic forest assets
The fair value of forest assets in the Nordics
is determined using a market approach,
which is based on the forest market
transactions in the areas where Stora Enso’s
forests are located. Market prices between
areas vary significantly and judgement is
applied to define relevant areas for market
transactions used in valuation. The valuation
of the forest assets is based on detailed
transaction data and price statistics as
provided by market data suppliers. Market
transaction data is adjusted to consider
characteristics and nature of Stora Enso's
forest assets and to exclude certain non-
forest assets and transactions considered as
outliers compared to other transactions. The
valuation takes into account where the forest
land is located, price levels and volume of
standing stock. The value of the forest
assets will be affected by changes in
transaction prices and by how the volume of
standing stock develops. Stora Enso is
applying weighted three-year average
market transaction prices and this is
considered to include a sufficient amount of
transactions and estimated to represent
market conditions at the reporting date.
The value of the forest assets is allocated
to biological assets and forest land.
Allocation of the combined fair value of forest
assets is based on the income approach
where separate present values of expected
net cash flows are calculated for both
biological assets and forest land. The
discount rate is determined as the rate at
which the valuation based on market
transaction prices matches the total forest
assets combined cash flows for biological
assets and forest land. The total net cash
flows for each of the components include
estimates in respect of future harvesting
volumes, sales price levels, and cost
development. See note 4.2 Forest assets for
more information.
Fair value of financial instruments
Where the fair value of financial assets and
liabilities cannot be derived directly from
publicly quoted market prices, other
valuation techniques, such as discounted
cash flow models, transaction multiples, the
Black and Scholes model and the Gordon
model, are applied. The key judgements
include future cash flows, credit risk, volatility
and changes in assumptions about these
factors which could affect the reported fair
value of the financial instruments.
Investments in debt and equity instruments
of unlisted entities, such as Pohjolan Voima
Oyj (PVO), represent a significant portion of
the Group’s assets and require management
judgement, as explained in more detail in
notes 4.4 Equity instruments and 5.1
Financial risk management.
Income taxes
Tax assets and liabilities are reviewed on a
regular basis and balances are adjusted
appropriately. The deferred tax assets,
whether arising from temporary differences
or from tax losses, are recognised only to the
extent that it is probable that future taxable
profits will be available against which the
assets can be utilised. Management
considers that adequate provision has been
made for future tax consequences based on
the current facts, circumstances and tax
laws. However, should any tax positions be
challenged and not prevail, different
outcomes could result and have a significant
impact on the amounts reported in the
consolidated financial statements. See note
2.5 Income taxes for more detailed
information.
Post-employment benefits
The determination of the Group pension
obligation and expense is subject to the
selection of certain assumptions used by
actuaries in calculating such amounts,
including, among others, the discount rate,
the annual rate of increase in future
compensation levels and estimated
lifespans. Amounts charged in the income
statement are determined by independent
actuaries; however, where actual results
differ from the initial estimates, together with
the effect of any change in assumptions or
other factors, these differences are
recognised directly in equity, as disclosed in
the statement of comprehensive income.
See note 3.3 Post-employment benefit
obligations for detailed information on the
assumptions used in the pension obligation
calculations.
Provisions
The Group has recognised provisions for
known environmental, restructuring and
other obligations, where legal or constructive
obligation exist as a result of past events.
The amounts recognised as provisions are
based on the management’s best estimate of
the costs required to settle the obligation.
Due to uncertainty regarding the timing and
amount of these costs, the actual costs might
differ significantly from the original estimate.
The carrying amounts of provisions are
reviewed regularly and adjusted when
needed to consider changes in cost
estimates, regulations, applied technologies
and conditions. See note 4.9 Provisions for
more detailed information.
37
2 Financial performance
2.1 Segment information
Accounting principles
Stora Enso’s reportable segments are Packaging Materials, Packaging Solutions, Biomaterials, Wood
Products, Forest and the segment Other. Operating segments reflect the Group’s management structure and
the way financial information is regularly reviewed by Stora Enso’s President and CEO who is responsible for
allocating resources and assessing the performance of the operating segments. Costs, revenues, assets and
liabilities are allocated to operating segments on a consistent basis. Transactions between operating
segments are based on arm’s length terms, and they are eliminated on consolidation. The activities of the
reportable segments are:
Packaging Materials
The Packaging Materials division is a global leader and expert in circular packaging providing
premium packaging materials based on virgin and recycled fiber. Stora Enso helps customers
replace fossil-based materials with low-carbon, renewable and recyclable alternatives for their
food, beverage and transport packaging with a wide selection of base boards and barrier
coatings.
Packaging Solutions
The Packaging Solutions division is a packaging converter that provides premium fiber-based
packaging products and services used by leading brands across multiple market areas, including
retail, e-commerce, fresh produce, and industrial applications. The division also provides design
and sustainability services for customers to optimise material use, logistics and to reduce CO2
emissions.
Biomaterials
The Biomaterials division’s business opportunities are strongly driven by the need to replace
fossil-based and other non-renewable materials. Stora Enso uses all fractions of a tree to
develop new biobased solutions for various applications. The division’s long-term growth is
driven by new products and innovations, while pulp continues to be the foundation.
Wood Products
The Wood Products division is Europe’s largest sawn timber producer and a leading provider of
sustainable wood-based solutions for the global construction industry. Additionally, it offers
window and door components, and co-products such as pellets made from wood residuals.
Forest
The Forest division is responsible for wood sourcing for Stora Enso’s Nordic and Baltic
operations and B2B customers. It manages the Group’s forest assets in Sweden and a 41%
share of Tornator, whose forests are mainly located in Finland. The division’s operations are
based on sustainable forest management from planning and logistics to harvesting and forest
regeneration.
Segment Other
The segment Other includes the divested paper sites until the completion of the divestments, the
reporting of the emerging businesses (including Formed Fiber and Selfly Stores), as well as
Stora Enso’s shareholding in the energy company Pohjolan Voima (PVO), and the Group’s
shared services and administration.
Read more about the changes in segment reporting in 2023 in the note 1.1 Accounting
principles. The comparative figures for 2022 have been restated accordingly.
38
Operating segments 2023

EUR million | Packaging Materials | Packaging Solutions | Biomaterials | Wood Products | Forest | Other | Eliminations | Group
External sales | 4,362 | 1,066 | 1,363 | 1,453 | 989 | 162 | 0 | 9,396
Internal sales | 195 | 11 | 223 | 127 | 1,501 | 801 | -2,859 | 0
Sales total | 4,557 | 1,077 | 1,587 | 1,580 | 2,490 | 964 | -2,859 | 9,396
Product sales |  |  |  |  |  |  |  | 9,317
Service sales |  |  |  |  |  |  |  | 79
Sales total |  |  |  |  |  |  |  | 9,396
Operating result | -642 | 17 | -81 | -86 | 461 | -41 | 49 | -322
Net financial expense |  |  |  |  |  |  |  | -173
Income taxes |  |  |  |  |  |  |  | 64
Result for the period |  |  |  |  |  |  |  | -431
Operative assets | 3,562 | 1,223 | 2,772 | 855 | 7,906 | 1,189 | -371 | 17,136
Tax receivables |  |  |  |  |  |  |  | 166
Interest-bearing receivables |  |  |  |  |  |  |  | 2,613
Assets held for sale |  |  |  |  |  |  |  | 839
Total assets |  |  |  |  |  |  |  | 20,754
Operative liabilities | 1,059 | 195 | 321 | 238 | 549 | 505 | -358 | 2,508
Tax liabilities |  |  |  |  |  |  |  | 1,478
Interest-bearing liabilities |  |  |  |  |  |  |  | 5,209
Liabilities related to assets held for sale |  |  |  |  |  |  |  | 671
Total liabilities |  |  |  |  |  |  |  | 9,865
Other items |  |  |  |  |  |  |  |
Depreciations/impairments/impairment reversals | -805 | -74 | -297 | -67 | -21 | -38 | 0 | -1,303
Capital expenditures | 636 | 161 | 162 | 51 | 29 | 15 | 0 | 1,054
Operating capital 1 | 3,243 | 1,028 | 2,451 | 617 | 7,358 | 684 | -13 | 15,368
Average personnel | 7,269 | 4,389 | 2,196 | 4,079 | 1,434 | 1,455 | 0 | 20,822

1 Including assets held for sale and related liabilities.
39
Operating segments 2022

EUR million | Packaging Materials | Packaging Solutions | Biomaterials | Wood Products | Forest | Other | Eliminations | Group
External sales | 5,257 | 704 | 1,798 | 2,058 | 848 | 1,014 | 0 | 11,680
Internal sales | 239 | 23 | 382 | 137 | 1,671 | 1,136 | -3,589 | 0
Sales total | 5,496 | 727 | 2,180 | 2,195 | 2,519 | 2,150 | -3,589 | 11,680
Product sales |  |  |  |  |  |  |  | 11,521
Service sales |  |  |  |  |  |  |  | 159
Sales total |  |  |  |  |  |  |  | 11,680
Operating result | 653 | -81 | 668 | 253 | 523 | 36 | -42 | 2,009
Net financial expense |  |  |  |  |  |  |  | -151
Income taxes |  |  |  |  |  |  |  | -322
Result for the period |  |  |  |  |  |  |  | 1,536
Operative assets | 4,792 | 351 | 3,095 | 998 | 7,481 | 1,924 | -440 | 18,201
Tax receivables |  |  |  |  |  |  |  | 85
Interest-bearing receivables |  |  |  |  |  |  |  | 2,122
Assets held for sale |  |  |  |  |  |  |  | 514
Total assets |  |  |  |  |  |  |  | 20,922
Operative liabilities | 1,265 | 146 | 299 | 280 | 518 | 574 | -377 | 2,704
Tax liabilities |  |  |  |  |  |  |  | 1,507
Interest-bearing liabilities |  |  |  |  |  |  |  | 3,972
Liabilities related to assets held for sale |  |  |  |  |  |  |  | 237
Total liabilities |  |  |  |  |  |  |  | 8,419
Other items |  |  |  |  |  |  |  |
Depreciations/impairments/impairment reversals | -287 | -62 | -110 | -59 | -50 | -67 | 0 | -635
Capital expenditures | 363 | 36 | 121 | 87 | 35 | 59 | 0 | 701
Operating capital 1 | 3,527 | 205 | 2,796 | 718 | 6,963 | 1,660 | -63 | 15,806
Average personnel | 7,113 | 3,865 | 2,135 | 4,445 | 1,412 | 2,822 | 0 | 21,790

1 Including assets held for sale and related liabilities.
Comparative figures have been restated as described in the Group's release from 29 March 2023.
40
Geographical information

| External sales by destination | Non-current assets by country 1 | Capital expenditure by country 2
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Austria | 347 | 450 | 134 | 128 | 15 | 16
Baltic States | 271 | 377 | 66 | 74 | 9 | 12
Czech Republic | 189 | 231 | 193 | 198 | 8 | 41
Finland | 664 | 759 | 2,872 | 2,729 | 587 | 311
France | 299 | 449 | 2 | 2 | 0 | 0
Germany | 862 | 1,208 | 34 | 53 | 9 | 10
Italy | 453 | 650 | 0 | 0 | 1 | 0
Netherlands | 597 | 317 | 797 | 9 | 131 | 7
Poland | 511 | 733 | 407 | 379 | 30 | 35
Sweden | 1,111 | 1,071 | 7,127 | 6,837 | 174 | 173
UK | 344 | 444 | 8 | 0 | 0 | 0
Other Europe | 901 | 1,245 | 126 | 135 | 12 | 16
Total Europe | 6,548 | 7,934 | 11,767 | 10,543 | 975 | 623
China (incl. Hong Kong) | 991 | 1,125 | 43 | 1,044 | 15 | 25
Japan | 242 | 417 | 0 | 0 | 0 | 0
Uruguay | 33 | 31 | 1,543 | 1,580 | 35 | 31
USA | 302 | 397 | 0 | 32 | 0 | 0
Other countries | 1,279 | 1,776 | 316 | 282 | 29 | 22
Total | 9,396 | 11,680 | 13,669 | 13,481 | 1,054 | 701
1 Non-current assets excluding assets held for sale, financial instruments and deferred tax assets. 2 Excluding biological asset capital expenditure

2.2 Other operating income and expense
Accounting principles
Research and development
Research costs are expensed as incurred in other operating expenses in the consolidated income statement.
Development costs are also expensed as incurred unless they meet the criteria to be recognised as
intangible assets in accordance with IAS 38, in which case they are capitalised as intangible assets and
amortised over their expected useful lives.
G overnment grants
Government grants relating to the purchase of property, plant and equipment are deducted from the carrying
value of the asset, while the net cost is capitalised. Other government grants are recognised as income on a
systematic basis over the periods necessary to match them with the related costs which they were intended
to compensate.
Green certificates
Stora Enso is part of the local green energy production system which entitles selected mills in Europe to
receive green certificates based on megawatt hours of green energy produced. Green certificates received
are recognised at grant date market value only in the balance sheet. As such, subsequent changes in market
prices do not have an impact on the income statement and the income is recognised only when certificates
are sold.
Other operating income and expense

EUR million | 2023 | 2022
Other operating income |  |
Emission rights allocated and disposal gains | 145 | 177
Sale of green certificates | 12 | 10
Gains on disposal of fixed assets | 44 | 4
Gains on disposal of Group companies and business operations | 52 | 18
Dividend and gain on sale of unlisted shares | 1 | 1
Insurance compensation | 8 | 10
CTA release | 0 | 5
Government grants | 40 | 16
Other 1 | 76 | 85
Total | 378 | 326

1 Including rent income, fair value changes for non-hedge accounted derivatives and other items. Derivatives are discussed in more detail
in note 5.4 Derivatives.

EUR million | 2023 | 2022
Other operating expenses |  |
Lease expenses | 43 | 40
Credit losses, net of reversals | 9 | 13
Losses on disposal of fixed assets | 4 | 0
Losses on disposal of Group companies and business operations | 19 | 26
CTA release | 56 | 52
Provision changes in income statement | 94 | 31
Other 1 | 414 | 431
Total | 638 | 594
1 Including expenses related to, among others, consultancy and other services, IT and telecommunications, properties and administration, audit, training, travelling, insurance, penalties, and currency translation differences on operative payables.
Materials and services include | 2023 | 2022
Emissions rights to be delivered | 82 | 112

The Group has recorded an o ther operating income of EUR 145 (177) million related to e mission
rights. Actual realised profits amounted to EUR 75 (59) million on the disposal of surplus rights.
Under Materials and Services an expense of EUR 82 (112) million has been booked related to
the cost of CO 2 emissions from production. See note 4.5 Emission rights and other non-current
assets for more details related to emission rights. The income from the sale of green certificates
amounted to EUR 12 (10) million.
Lease expenses include expenses relating to short-term leases of EUR 12 (12) million, low-
value assets of EUR 26 (21) million and variable lease payments not included in the
measurement of lease liabilities of EUR 2 (2) million. Lease expenses also include service
payments included in lease contracts, which are not included in the measurement of lease
liabilities.
In 2023, research and development expenses of EUR 98 (89) million were recorded.
41
Auditor's fees and services

EUR million | 2023 | 2022
Audit fees | 4 | 4
Audit-related fees | 0 | 0
Tax fees | 0 | 0
Other fees | 0 | 0
Total | 5 | 4

Aggregate fees for professional services rendered to the Group principal auditor PwC amounted
to EUR 5 (4) million. Audit fees relate to the auditing of the annual financial statements or
ancillary services normally provided in connection with statutory and regulatory filings. Audit-
related fees are incurred for assurance and associated services that are reasonably related to
the performance of the audit or for the review of financial statements.
2.3 Depreciation, amortisation and impairment charges
Accounting principles
Depreciation, amortisation and impairment charges
Depreciation or amortisation of an asset begins when it is available for use in the location and condition
necessary for it to be operated in the manner intended by management. Depreciation or amortisation ceases
when the asset is derecognised or classified as held for sale. Depreciation or amortisation does not cease
when the asset becomes idle. Tangible and intangible assets are depreciated and amortised on a straight-line
basis during their useful lives. Useful lives are reviewed annually. If an asset is disposed and the asset’s book
value is higher than the disposal proceeds, the difference is recognised as an impairment in the period when
reliable estimate of disposal loss is available, at the latest when a binding sales contract is signed. Right-of-
use (ROU) assets are depreciated using the straight line method from the commencement date of the
contract to the earlier of the end of the lease term or the end of the useful life of the ROU assets.
The carrying amounts of intangible assets, property, plant and equipment and ROU assets are reviewed
at each reporting date to determine whether there is any indication of impairment, whereas goodwill is tested
annually. If any such indication exists, the recoverable amount is estimated as the higher of the fair value less
costs of disposal and the value in use, with an impairment loss being recognised whenever the carrying
amount exceeds the recoverable amount.
A previously recognised impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount, however, not to an extent higher than the carrying amount that would
have existed had no impairment loss been recognised in prior years. For goodwill, however, a recognised
impairment loss is not reversed.
Whilst intangible assets, property, plant and equipment and ROU assets are subject to impairment testing
at the cash generating unit (CGU) level, goodwill is subject to impairment testing at the CGU level for groups
of CGUs, which represents the lowest level within the Group at which goodwill is monitored for internal
management purposes.
Depreciation, amortisation and impairment charges

EUR million | 2023 | 2022
Depreciation and amortisation |  |
Intangible assets | 41 | 24
Buildings and structures | 76 | 81
Plant and equipment | 349 | 371
Right-of-use assets | 59 | 50
Other tangible assets | 8 | 8
Total | 533 | 533
Impairment |  |
Goodwill | 85 | 11
Intangible assets | 24 | 1
Buildings and structures | 134 | 25
Plant and equipment | 494 | 75
Right-of-use assets | 33 | 0
Other tangible assets | 6 | 2
Total | 776 | 114
Reversal of impairment |  |
Plant and equipment | -6 | -7
Total | -6 | -7
Disposal gains/losses |  |
Gain on sale of assets | 0 | -10
Loss on sale of assets | 0 | 4
Total | 0 | -5
Depreciation, amortisation and impairment charges | 1,303 | 635

Impairment testing
The recoverable amount for the cash generating units (CGUs) has been determined as the
higher of fair value less cost to sell and their value in use. Value in use is determined by using
cash flow projections from financial estimates approved by the Board of Directors and
management. The pre-tax discount rates are calculated for each CGU, taking into account the
business environment of the CGU and the tax and risk profile of the country in which the cash
flow is generated. The table in the goodwill impairment testing section below sets out the pre-tax
discount rates used for goodwill impairment testing, which are similar to those used in the
impairment testing of other intangible assets, property, plant and equipment, and ROU assets.
The following assumptions were used in calculating value in use for each CGU:
• Sales price estimates in accordance with internal and external specialist analysis;
• Cash flows and discount rates were prepared in nominal terms;
• Current cost structure to remain unchanged;
• For goodwill testing, a five-year future period was used, after which the perpetuity value was
determined using inflation based growth rates;
• For intangible assets, property, plant and equipment, and ROU assets testing period was the
remaining expected economic life of the assets.
42
Property, plant and equipment, other intangible assets and ROU assets
impairments
The total impairment charges on property, plant and equipment, other intangible assets and
ROU assets in 2023 amounted to EUR 691 (103) million and resulted from business
restructuring, Group company disposals and predictions of a weaker outlook compared to
previous estimates.
In 2023, impairments were mainly related to Biomaterials and Packaging Materials divisions.
Biomaterials related impairments of EUR 146 million concerned Nordic Mills CGU and are
mainly related to Sunila due to the closure of pulp production site Finland and Uimaharju site
due to predictions of a weaker outlook compared to previous estimates. Packaging Materials
related impairments of EUR 490 million concerned mainly Containerboard Oulu CGU of EUR
228 million due to predictions of a weaker outlook compared to previous estimates, Consumer
Board China CGU of EUR 202 million in connection to potential disposal transaction and based
on fair value less cost to sell, and CGU De Hoop of EUR 42 million due to the closure of the site
in the Netherlands.
In 2022, impairments were mainly related to Group company disposals in Russia and
disposals in the Paper division. Russia related impairments of EUR 75 million concerned Wood
Products Baltic and Russia CGU, Packaging Solutions Corrugated Nordics, and CEE CGU and
Forest operations CGU. Paper related impairments of EUR 22 million concerned News and
Office CGUs. Due to disposals, Wood Products Baltic and Russia CGU no longer exists as its
own CGU. Due to segment changes in 2023, News and Office CGUs, previously part of Paper,
are presented as part of the segment Other.
Goodwill impairments
In 2023, a goodwill impairment of EUR 28 million was recognised in Anjala Mill CGU and EUR
13 million in De Hoop mill CGU mainly due to restructurings in the Packaging Materials division.
Additionally, a goodwill impairment of EUR 44 million was recognised in the Biomaterials
division's CGU Nordic Mills, due to predictions of a weaker outlook compared to previous
estimates.
Due to disposals i n 2022 in the Paper division, a goodwill impairment of EUR 11 million was
recognised in News and Office CGUs. Due to segment changes in 2023, News and Office
CGUs, previously part of Paper, are presented as part of the segment Other.
The most material groups of CGUs containing goodwill

| 2023 | 2022
EUR million | Goodwill at year end | Pre-tax discount rate | Goodwill at year end 1 | Pre-tax discount rate
Packaging Solutions - Western Europe | 277 | 9.3% | 0 | —
Wood Products - Southern Europe | 110 | 11.8% | 111 | 9.9%
Biomaterials - Nordic Mills | 0 | 10.1% | 45 | 8.2%
Other CGUs | 119 |  | 88 |
Total | 505 |  | 244 |
1 Goodwill excluding assets held for sale

The calculation of value in use is highly sensitive to discount rates, sales prices and costs.
Sensitivity analysis are conducted to calculate the amounts by which the value assigned to the
key assumption must change in order for the unit’s recoverable amount to be equal to its
carrying amount for the CGUs for which a reasonably possible change in an assumption could
result in an impairment. I n 2023, any reasonably possible change in key assumptions would not
cause carrying amount to exceed its recoverable amount.
Summary of impairments and impairment reversals per division

EUR million | 2023 | 2022
Packaging Materials | 530 | 0
Packaging Solutions | 5 | 36
Biomaterials | 190 | 0
Wood Products | 20 | 10
Forest | 1 | 31
Other | 23 | 28
Total (impairment +) / (Impairment reversal -) | 770 | 107

2.4 Net financial items
Accounting principles
Net financial items comprise net interest expenses, foreign exchange gains and losses and other financial
income and expenses mainly arising from interest-bearing assets and liabilities.
43
Financial income and expense

EUR million | 2023 | 2022
Net financial expense in the income statement |  |
Financial income | 91 | 40
Financial expense | -264 | -191
Total | -173 | -151
Represented by |  |
Interest expense |  |
Interest expense from borrowings measured at amortised cost | -167 | -96
Interest component of the effective hedges under cash flow hedge | 9 | -12
Interest expense on leases | -23 | -17
Interest capitalised | 7 | 0
Interest income on loans and receivables measured at amortised cost | 61 | 20
Net interest expense | -113 | -105
Foreign exchange gains and losses |  |
Currency derivatives | -12 | 8
Borrowings, cash equivalents, lease liabilities and other | -10 | -10
Net foreign exchange gains and losses | -22 | -1
Other financial income | 6 | 2
Other financial expense |  |
Financial fees | -28 | -8
Fair valuation losses | 0 | -4
Impairments of interest-bearing assets | -11 | -30
Net interest on net defined benefit liabilities | -5 | -3
Net other financial expense | -38 | -45
Total | -173 | -151
Gains and losses on derivative financial instruments are shown in note 5.4 Derivatives.

In 2023, the net interest expense increased mainly as a result of higher interest rates on
borrowings and higher amount of gross debt. The negative impact was partly offset by higher
interest income on loans and receivables.
The amount of interest costs capitalised during the year amounted to EUR 7 (EUR 0) million,
and were mainly related to the Oulu site conversion project in Finland. The average interest rate
used for capitalisation was 3.6% (-). Costs on long-term debt issues capitalised as part of non-
current debt amounted t o EUR 9 (6) million in the statement of financial position. During the
year, EUR 2 (2) million was amortised through interest expense by using the effective interest
rate method.
Exchange gains and losses for currency derivatives mainly relate to non-hedge accounted
instruments fair valued in the income statement. In 2023, the amount reported as other financial
income mainly consists of fair valuation gains, while other financial expense in the table above
relates to net financial fees for unused committed credit facilities, guarantees, and factoring and
supply chain financing programmes. Impairments of interest-bearing assets relate to receivables
originating from the sale of the Russia operations in 2022 and are discussed in more detail in
note 5.3 Interest-bearing assets and liabilities.
2.5 Income taxes
Accounting principles
The Group income tax expense/benefit includes taxes of Group companies based on taxable profit/loss for
the period, together with tax adjustments for previous periods and the change in deferred taxes. Tax assets
and liabilities reflect uncertainty related to income taxes, if any.
Deferred taxes are provided using the liability method, as measured with enacted, or substantially enacted,
tax rates, to reflect the net tax effects of all temporary differences between the tax bases and the accounting
bases of assets and liabilities. No deferred tax is recognised for the initial recognition of goodwill and the
initial recognition of an asset or liability in a transaction which is not a business combination, and at the time
of the transaction this affects neither accounting profit nor taxable profit. Deferred tax is recognised on
transactions in which equal amounts of deductible and taxable temporary differences arise on initial
recognition. Deferred tax assets reduce income taxes payable on taxable income in future years. The
deferred tax assets, whether arising from temporary differences or from tax losses, are recognised only to the
extent that it is probable that future taxable profits will be available against which the assets can be utilised.
Tax expense

EUR million | 2023 | 2022
Current tax | -54 | -196
Deferred tax | 119 | -126
Total income tax | 64 | -322

Income tax rate reconciliation

EUR million | 2023 | 2022
Profit before tax | -495 | 1,858
Tax at statutory rates applicable to profits in the country concerned 1 | 121 | -337
Non-deductible expenses and tax exempt income 2 | -10 | -15
Valuation of deferred tax assets | -60 | 15
Taxes from prior years | -3 | 2
Changes in tax rates and tax laws | -1 | 0
Results from associated companies | 27 | 44
Other | -10 | -31
Total income taxes | 64 | -322
Effective tax rate | 13.0% | 17.3%
Statutory tax rate (blended) | 24.5% | 18.2%
1 Includes a EUR 22 million impact from countries with tax holidays and tax benefits in 2023 and a EUR 55 million impact from tax holidays and other tax benefits in 2022. 2 The tax value of non-deductible expenses of EUR 12 million has been netted against tax exempt income of 3 EUR million in 2023, and tax value of non-deductible expenses of EUR 16 million has been netted against tax exempt income of EUR 1 million in 2022.

The statutory tax rate is a weighted average of the statutory tax rates prevailing in jurisdictions
where Stora Enso operates.
44
Change in deferred taxes in 2023

EUR million | Value at 1 Jan 2023 | Income statement | OCI | Acquisitions / disposals | Translation difference | Value at 31 Dec 2023
Forest assets | -1,267 | -54 | 9 | 0 | -4 | -1,315
Fixed assets | -123 | 58 | 0 | -60 | -3 | -128
Financial instruments | -10 | -2 | -1 | 0 | 0 | -12
Untaxed reserves | -85 | 77 | 0 | 0 | 2 | -6
Pensions and provisions | 26 | -3 | 9 | 0 | 1 | 34
Tax losses and tax credits carried forward | 74 | 40 | 0 | 0 | -2 | 112
Other deferred taxes | 15 | 2 | 0 | -2 | 1 | 17
Total | -1,370 | 119 | 18 | -62 | -4 | -1,299
Equity hedges and net investment loans (CTA) |  | 0 | 0 |  |  |
Cash flow hedging |  | 0 | 0 |  |  |
Change in deferred tax |  | 119 | 18 | -62 | -4 |
Assets 1 | 74 |  |  |  |  | 134
Liabilities 1 | -1,443 |  |  |  |  | -1,433
1 Deferred tax assets and liabilities have been offset in accordance with IAS 12. OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment

Change in deferred taxes in 2022

EUR million | Value at 1 Jan 2022 | Income statement | OCI | Acquisitions / disposals 1 | Translation difference | Value at 31 Dec 2022
Forest assets | -1,268 | -43 | -53 | 0 | 97 | -1,267
Fixed assets | -103 | -44 | 0 | 17 | 7 | -123
Financial instruments | 1 | -3 | -8 | 0 | 0 | -10
Untaxed reserves | -80 | -16 | 0 | 4 | 7 | -85
Pensions and provisions | 58 | -1 | -25 | -4 | -2 | 26
Tax losses and tax credits carried forward | 107 | -34 | 0 | 0 | 1 | 74
Other deferred taxes | -2 | 19 | 0 | -2 | 0 | 15
Total | -1,287 | -122 | -86 | 15 | 110 | -1,370
Equity hedges and net investment loans (CTA) |  | -3 | 3 |  |  |
Change in deferred tax |  | -125 | -83 | 15 | 110 |
Assets 2 | 143 |  |  |  |  | 74
Liabilities 2 | -1,430 |  |  |  |  | -1,443
1 Includes assets held for sale. 2 Deferred tax assets and liabilities have been offset in accordance with IAS 12. OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment

The recognition of deferred tax assets is based on the Group’s estimations of future taxable
profits available against which the Group can utilise the benefits.
Non-recognised deferred tax assets on deductible temporary differences amounted to EUR 50
(50) million. There is no expiry date for these differences. Taxable temporary differences in
respect of investments in subsidiaries, branches and associates and interests in joint operations,
for which deferred tax liabilities have not been recognised amounted to EUR 428 (367) million.
Tax losses

| Tax losses carried forward | Recognised tax values | Unrecognised tax values
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Expiry within five years | 88 | 359 | 9 | 5 | 13 | 72
Expiry after five years | 326 | 100 | 60 | 9 | 6 | 14
No expiry | 1,213 | 1,173 | 42 | 58 | 219 | 198
Total | 1,626 | 1,633 | 111 | 73 | 237 | 283

At the end of 2023 tax losses of EUR 259 million related to Finland and a deferred tax asset of
EUR 52 million was recognized of these tax losses. At the end of 2022, there were no material
tax losses related to Finland.
Uncertain tax positions
At balance sheet date there were on-going tax audits in several jurisdictions. It is not expected
that any significant additional taxes in excess of those already recorded for will arise as a result
of these audits.
Impact of OECD Pillar Two model rules
The Group is within the scope of the OECD Pillar Two model rules as from 1 January 2024. The
Group has no related current tax exposure for the financial year 2023. The Group applies the
exception to recognising and disclosing information about deferred tax assets and liabilities
related to Pillar Two income taxes, as provided in the amendments to IAS 12.
The Group has initially assessed its exposure to the legislation. Part of the Group's operation
in Uruguay may become subject to the Pillar Two minimum tax. The impact of the legislation to
the Group’s average effective tax rate is expected to vary from year to year, and the Group
estimates the tax impact in the short term to be between 0–15 million EUR per year. Estimates
are based on the current understanding of the interpretation of the new rules.
2.6 Earnings per share
Accounting principles
Basic earnings per share, attributable to the owners of the parent company, are calculated by dividing the net
result attributable to shareholders by the weighted average number of ordinary shares in issue during the
year, excluding ordinary shares purchased by the group and held as treasury shares. Diluted earnings per
share are calculated by adjusting the weighted average number of ordinary shares plus the diluted effect of
all potential dilutive ordinary shares, such as shares from share-based payments.
Earnings per share

| 2023 | 2022
Net result for the period attributable to the owners of the parent, EUR million | -357 | 1,550
Weighted average number of A and R shares | 788,619,987 | 788,619,987
Weighted average number of share awards | 1,094,121 | 771,150
Weighted diluted number of shares | 789,714,108 | 789,391,137
Basic earnings per share, EUR | -0.45 | 1.97
Diluted earnings per share, EUR | -0.45 | 1.96

45
3 Employee remuneration
3.1 Personnel expenses
Personnel expenses

EUR million | 2023 | 2022
Wages and salaries | 962 | 996
Pension expenses | 147 | 152
Share-based remuneration | 4 | 8
Other statutory employer costs | 139 | 140
Other voluntary costs | 23 | 20
Total | 1,275 | 1,315

Pension expenses

EUR million | 2023 | 2022
Defined benefit plans | 7 | 5
Defined contribution plans | 140 | 146
Total | 147 | 152

The average number of employees in 2023 amounted to 20,822 (21,790). Pension costs are
discussed further in note 3.3 Post-employment benefit obligations.
In 2023, the expense of the share-based remuneration was EUR 4 (8) million. Share-based
remuneration comprising of share awards is described in more detail in note 3.4 Employee
variable compensation and equity incentive schemes. Remuneration of the Group Leadership
Team and Board are described in note 3.2 Board and executive remuneration.
3.2 Board and executive remuneration
Board and committee remuneration

| 2023 | 2022 |
EUR thousand (before taxes) | Cash | Value of shares 1 | Total 4 | Total | Committee memberships
Board members at 31 December 2023 |  |  |  |  |
Kari Jordan, Chair | 135 | 85 | 220 | 86 | People and Culture, Nomination 2,3
Håkan Buskhe, Vice Chair | 77 | 48 | 125 | 122 | People and Culture, Nomination 2,3
Elisabeth Fleuriot | 64 | 33 | 97 | 94 | Financial and Audit
Helena Hedblom | 55 | 33 | 88 | 86 | Sustainability and Ethics
Astrid Hermann | 64 | 33 | 97 | — | Financial and Audit
Christiane Kuehne | 60 | 33 | 93 | 90 | Sustainability and Ethics
Antti Mäkinen | 55 | 33 | 88 | 214 | People and Culture
Richard Nilsson | 71 | 33 | 104 | 101 | Financial and Audit
Former Board members |  |  |  |  |
Hock Goh (until 16 March, 2023) | — | — | — | 94 | Financial and Audit
Hans Sohlström (until 18 September, 2023) | 55 | 33 | 88 | 86 | Sustainability and Ethics
Total remuneration as Directors 1 | 636 | 364 | 1,000 | 972 |
1 40% of the Board remuneration, excluding Committee remuneration, in 2023 was paid in Stora Enso R shares purchased from the market and distributed as follows: to Chair 7,326 R shares, Vice Chair 4,136 R shares, and members 2,839 R shares each. The Company has no formal policy requirements for the Board members to retain shares received as remuneration. 2 Stora Enso’s Shareholders’ Nomination Board has been appointed by the AGM in 2016 to exist until otherwise decided. The Shareholders’ Nomination Board according to its Charter as approved by the AGM comprises of four members: the Chair and Vice Chair of the Board of Directors, as well as two members appointed by the two largest shareholders (one each) as of 31 August each year. No separate remuneration is paid to members of the Nomination Board. 3 Marcus Wallenberg, appointed by FAM AB, is Chair of the Nomination Board. Jouko Karvinen is the member of the Shareholders’ Nomination Board appointed by Solidium Oy. Kari Jordan and Håkan Buskhe were appointed as members of the Shareholders’ Nomination Board in their roles as Chair and Vice Chair of the Board of Directors. 4 The Company additionally pays the transfer tax for share purchases for each member, in line with AGM decision, which amount is considered also taxable income for each member.

Shareholders at the Annual General Meeting (AGM) have established a Shareholders’
Nomination Board to exist until otherwise decided and to annually prepare proposals for the
AGM's approval concerning the number of members of the Board of Directors, the Chair, Vice
Chair and other members of the Board, as well as the remuneration for the Chair, Vice Chair and
members of the Board and its committees.
46
Board share interests at 31 December 2023

| Shares held (direct and indirect ownership)
| A | R
Board members at 31 December 2023 |  |
Kari Jordan, Chair |  | 9,012
Håkan Buskhe, Vice Chair |  | 12,069
Elisabeth Fleuriot |  | 32,868
Helena Hedblom |  | 6,356
Astrid Hermann |  | 2,839
Christiane Kuehne |  | 17,429
Antti Mäkinen |  | 19,415
Richard Nilsson 1 | 127 | 30,207
Total shares held | 127 | 130,195
1 Spouse holds 127 of A shares and 236 of R shares

The following Board members also served in 2023

| Shares held when Board membership ended (direct and indirect) | Effective date of Board membership ending
Hock Goh | 34,782 | 16 March 2023
Hans Sohlström 1 | 16,535 | 18 September 2023
1 Spouse holds 179 of the shares

Group Leadership Team (GLT) remuneration and share interests
The table below includes the remuneration earned by GLT members during the year, including
those shares with performance conditions that have ended and are due to vest in the coming
year. The Company recommends and expects the CEO and GLT members to hold Stora Enso
shares at a value corresponding to at least one annual base salary. Stora Enso shares received
as remuneration are therefore recommended not to be sold until this level has been reached.
The aggregate cost of earned remuneration for GLT in 2023 amounted to EUR 12 (15)
million. The total number of GLT members was 11 (11) at the year end in 2023.
In accordance with their respective pension arrangements, GLT members may retire at sixty-
five years of age with pensions consistent with local practices in their respective home countries.
Contracts of employment provide for six months’ notice prior to termination with severance
compensation of twelve months basic salary if the termination is at the Company’s request.
The outcome of the financial targets relating to the Short term incentive programmes for the
performance year 2023, and Long term incentive programmes for the performance years 2021
to 2023 were reviewed and confirmed by the People and Culture Committee, and approved by
the Board of Directors in January 2024.
Note 3.4 Employee variable compensation and equity incentive schemes includes details of
incentive schemes and share opportunity programmes for the management and staff of Stora
Enso.
Group Leadership Team remuneration

| 2023 | 2022
EUR thousand | CEO 2 | Former CEO 2 | Others 3,6 | GLT Total | CEO | Others | GLT Total
Remuneration 1,5 |  |  |  |  |  |  |
Annual salary | 290 | 669 | 3,656 | 4,615 | 953 | 4,802 | 5,755
Local housing (actual costs) | — | — | 3 | 3 | 0 | 2 | 2
Other benefits | — | 26 | 263 | 289 | 32 | 272 | 304
Termination benefits | — | 933 | 300 | 1,233 | 0 | 0 | 0
Short Term Incentive programme 4 | — | 157 | 1,024 | 1,181 | 845 | 2,167 | 3,012
Long Term Incentive programme 4 | — | 912 | 1,652 | 2,564 | 987 | 2,848 | 3,835
| 290 | 2,697 | 6,898 | 9,885 | 2,817 | 10,091 | 12,908
Pension costs |  |  |  |  |  |  |
Mandatory plans | 48 | 428 | 920 | 1,396 | 477 | 1,154 | 1,631
Stora Enso voluntary plans | — | — | 730 | 730 | 0 | 933 | 933
| 48 | 428 | 1,650 | 2,126 | 477 | 2,087 | 2,564
Total compensation | 338 | 3,125 | 8,548 | 12,011 | 3,294 | 12,178 | 15,472
1 The Finnish Corporate Governance code requires companies to report remuneration that is paid or due, and due to this the figures presented in the above table do not directly reconcile with the amounts recognised as personnel expenses in the Income statement as presented in the below table Group Leadership Team remuneration in Income statement. 2 CEO remuneration consists of remuneration delivered to Hans Sohlström as of 18 September 2023 and Annica Bresky until 18 September 2023. 3 Includes earnings related to René Hansen until 4 May 2023, Minna Björkman until 30 September 2023 and David Ekberg until 30 November 2023. And Micaela Thorström as of 1 April 2023 and Ad Smit as of 1 December 2023. 4 Related to amounts due at year end, which will be paid in 2024. LTI value is calculated using the 29 December 2023 closing price of EUR 12.53. The final value of the vested shares will depend on the share price on vesting date 1 March 2024. 5 Remuneration for executives is disclosed only for the period during which they were GLT members. 6 Remuneration of GLT members decreased in 2023 compared to 2022 mainly due to the performance outcome of variable pay programmes. The average number of GLT members during 2023 was 10.40.

Group Leadership Team remuneration in Income statement

| 2023 | 2022
EUR thousand | CEO | Former CEO | Others | GLT Total | CEO | Others | GLT Total
Salaries and other short-term employee benefits | 290 | 852 | 4,946 | 6,088 | 1,830 | 7,243 | 9,073
Long Term Incentive programme 1 | 137 | 432 | 1,245 | 1,814 | 714 | 1,581 | 2,295
Post-employment benefits | 48 | 428 | 1,650 | 2,126 | 477 | 2,087 | 2,564
Total recognised in Income statement | 475 | 1,712 | 7,841 | 10,028 | 3,021 | 10,911 | 13,932
1 The costs of long-term incentive (LTI) programmes are recognised as costs over the three year vesting period based on the share price at grant date and the estimate of equity instruments that will eventually vest.

47
Executives other than CEO
Short term incentive (STI) programmes for management
In 2023, GLT members have STI programmes with up to a maximum of 70% or 80% of their
annual fixed salary, payable the year after the performance period. 80–100% of the STI for 2023
was based on financial measures and 0–20% on individual strategic key targets.
Long term incentive (LTI) programmes for management
The 2021 programme has three one-year performance periods which are accumulated after
three years. The 2022 and 2023 programmes feature performance metrics with one-year
performance periods, which are accumulated after three years, as well as three-year
performance periods. All three programmes will be settled in only one portion after three years,
and the absolute maximum vesting level is 100% of the number of shares granted. The 2021
programme is related to performance period 2021–2023, the 2022 programme is related to
performance period 2022–2024 and the 2023 programme is related to performance periods
2023–2025. The opportunity under the programmes is in Performance Shares, where the shares
are vested in accordance with performance criteria proposed by the People and Culture
Committee and approved by the Board of Directors.
During the year the 2023 programme was launched, in which the GLT members (in GLT at
year end) can potentially receive a value corresponding to 227,130 sh ares before taxes,
assuming the maximum vesting level during the three-year vesting period (2023–2025) is
achieved. The total number of shares actually transferred will be lower because a portion of
shares corresponding to the tax obligation will be withheld to cover income tax.
The fair value of employee services received in exchange for share-based compensation
payments is accounted for in a manner that is consistent with the method of settlement and is
either cash or equity settled as described in more detail in note 3.4 Employee variable
compensation and equity incentive schemes. For the equity settled part, it is possible that the
actual cash cost does not agree with the accounting charges because the share price is not
updated at the time of the vesting. The figures in the Group Leadership Team Remuneration
table refer to individuals who were executives at year end or during part of the year.
At the end of the year, the performance period for the 2021 programme ended, and will be
settled in one portion after three years in March 2024, dependent on Economic Value Added
(EVA) for the Stora Enso Group and Earnings Per Share (EPS) for the Stora Enso Group. The
Performance Share programme resulted in a 89 % performance outcome. The number of shares
due for executives (GLT members at year end) from programmes that ended during 2023
amounted to 115,580 shares. The total number of shares actually transferred will be lower
because a portion of shares corresponding to the tax obligation will be withheld to cover income
tax.
CEO
President & Chief Executive Officer – Hans Sohlström
The CEO has been employed by Stora Enso and assumed the position of CEO on 18
September 2023. He has a notice period of six months with a severance payment of twelve
months salary on termination by the Company but with no contractual payments on any change
of control. The CEO’s pension plan and retirement age is according to the Finnish statutory TyEL
plan.
Short term incentive (STI) programme for CEO
As of 18 September 2023, for the next 12+12 months, the CEO is entitled to an STI programme
with a maximum opportunity of 100% of the annual fixed salary for each 12 month period.
Long term incentive (LTI) programme for CEO
As of 18 September 2023, there is a two-year CEO Performance Plan initiated with a vesting
date in Q4/2025. The CEO has the potential to receive a value corresponding to a maximum of
169,420 shares before taxes. The performance targets are related to balance sheet, capital
expenditure, strategy and sustainability. The CEO is not eligible to participate in LTI 2023–25 or
other potential LTI programmes starting during 2024.
Former President & Chief Executive Officer – Annica Bresky
Annica Bresky was employed by Stora Enso since 1 May 2017 and assumed the position of
CEO on 1 December 2019 until 18 September 2023. She had a notice period of six months with
a severance payment of twelve months salary on termination by the Company. The severance
payment is due to be paid in 2024. In 2023, the former CEO was entitled to an STI programme
decided by the Board giving a maximum opportunity of 100% of the annual fixed salary. The
payout is prorated to employment during Jan–Sep, 2023. The former CEO participated in the
2021, 2022 and 2023 share based LTI programmes. Each programme has cliff vesting after
three years. At the payout, the actual value of these plans is prorated according to active
employment in the Company.
Group Leadership Team share interests

Executives in office at the year end | R shares held 1 | Shares due 2024 2 | Performance share opportunity 2025–2026 5 | Restricted share opportunity 2024–2025 5
Hans Sohlström 6 | 100,799 | — | 169,420 | —
Seppo Parvi | 63,162 | 16,457 | 61,160 | —
Tobias Bäärnman | 4,196 | 9,892 | 25,980 | —
Johanna Hagelberg | 35,645 | 12,047 | 43,520 | —
Hannu Kasurinen | 52,736 | 19,961 | 57,810 | —
Katariina Kravi | 10,383 | 11,945 | 33,600 | —
Per Lyrvall 3 | 84,143 | 15,074 | 47,840 | —
Annette Stube | 9,054 | 11,218 | 31,570 | —
Ad Smit | — | — | 8,168 | 22,722
Micaela Thorström | — | 1,677 | 12,858 | 302
Lars Völkel | 16,477 | 17,309 | 51,280 | —
Total, serving officers 4 | 376,595 | 115,580 | 543,206 | 23,024
1 Direct and indirect ownership. None of the GLT members holds A shares. 2 Shares due to GLT member are gross of taxes for the LTI programmes with performance periods that ended in 2023 and are due to be paid 2024. The Performance Share programme resulted in a 89% performance outcome due to be paid in 2024 partly in shares and cash. Some GLT members hold restricted shares in the Restricted Shares programme that ended in 2023 and those shares are due to be paid 2024. 3 Spouse holds 1,257 of the shares. 4 The Company recommends and expects GLT members to hold Stora Enso shares at a value corresponding to at least one annual base salary. Stora Enso shares received as remuneration are therefore recommended not to be sold until this level has been reached. 5 Potential shares to GLT members are gross of taxes for LTI programmes with performance periods that end in 2024–2025 and are due to be paid 2025–2026. 6 Spouse holds 179 of the shares.

48

The following Executive Officers also served in 2023 | R shares held when GLT membership ended | Performance Share Awards when GLT membership ended | Restricted Share Awards when GLT membership ended | Effective date of GLT membership ending
Annica Bresky | 52,594 | 79,197 |  | 17 September 2023
Minna Björkman | 2,344 | 16,508 | 1,122 | 30 September 2023
David Ekberg 1 | 8,830 | 37,820 |  | 30 November 2023
René Hansen 1 | 1,462 | 27,100 | 3,400 | 4 May 2023
1 Unvested shares are forfeited at end of employment

3.3 Post-employment benefit obligations
Accounting principles
Employee benefits
The Group operates a number of defined benefit and contribution plans throughout the world, the assets of
which are generally held in separate trustee administered funds. Such pension and post-retirement plans are
generally funded by payments from employees and by the relevant Group companies, taking into account the
recommendations of independent qualified actuaries. Employer contributions to the defined contribution
pension plans are charged to the consolidated income statement in the year they relate to.
For defined benefit plans, accounting values are assessed using the projected unit credit method. Under
this method, the cost of providing pensions is charged to the consolidated income statement to spread the
regular cost over the service lives of employees in accordance with the advice of qualified actuaries who
carry out a full valuation of the plan every year in all major pension countries. The pension obligation is
measured as the present value of the estimated future cash outflows using interest rates of highly rated
corporate bonds or government securities, as appropriate, that match the currency and expected duration of
the related liability.
The Group recognises all actuarial gains and losses arising from defined benefit plans directly in equity,
as disclosed in its consolidated statement of comprehensive income. Past service costs are identified at the
time of any amendments to the plans and are recognised immediately in the consolidated income statement
regardless of vesting requirements. In the Group’s consolidated statement of financial position, the full liability
for all plan deficits is recorded.
The Group's pension expenses amounted to EUR 147 (152) million in 2023, as shown in note
3.1 Personnel expenses. Pensions are classified as defined contribution plans and defined
benefit plans. The majority of the Group's pensions plans are defined contribution plans for
which the charge amounted to EUR 140 (146) million. The priority of the Group is to provide
defined contribution plans as its post-employment benefits.
Net defined benefit obligation reconciliation

| Defined benefit obligation | Fair value of plan assets | Net defined benefit obligation / (asset)
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
At 1 January | 736 | 1,108 | -577 | -762 | 159 | 347
Current service cost | 7 | 12 | 0 | 0 | 7 | 12
Past service cost | 0 | -6 | 0 | 0 | 0 | -6
Settlements | 0 | -7 | 0 | 7 | 0 | 0
Interest expense (+) income (-) | 27 | 13 | -22 | -10 | 5 | 3
Total included in income statement | 34 | 11 | -22 | -3 | 12 | 9
Actuarial changes in demographic assumptions | 1 | -13 | 0 | 0 | 1 | -13
Actuarial changes in financial assumptions | 31 | -306 | 0 | 0 | 31 | -306
Actuarial changes from experience adjustments | 19 | 63 | 0 | 0 | 19 | 63
Return on plan assets 1 | 0 | 0 | -1 | 105 | -1 | 105
Asset ceiling impact 1 | 0 | 0 | 2 | 5 | 2 | 5
Total remeasurement gains (-) / losses (+) included in OCI | 52 | -256 | 0 | 109 | 52 | -147
Benefit payments | -56 | -54 | 45 | 41 | -12 | -13
Employer contributions and refunds | 0 | 0 | -20 | 4 | -20 | 4
Translation difference | 3 | -38 | -3 | 33 | 0 | -5
Disposals and classification as held for sale | 6 | -35 | -1 | 0 | 5 | -35
At 31 December | 775 | 736 | -578 | -577 | 197 | 159

1 Excluding amounts included in interest expense (+) income (-)
In 2024, contributions of EUR 22 (19) million are expected to be paid to Group's defined benefit
plans.
Significant actuarial assumptions used in the valuation of defined benefit obligations

| Finland | Germany | Sweden
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Discount rate % | 3.1 | 3.6 | 3.3 | 3.6 | 3.1 | 4.0
Future salary increase % | 3.0 | 3.0 | 2.5 | 2.5 | 2.9 | 2.9
Future pension increase % | 2.2 | 2.2 | 2.0 | 2.0 | 2.0 | 2.0
Duration of pension plans | 8.0 | 8.0 | 8.8 | 10.2 | 12.7 | 13.1

Sensitivity of the defined benefit obligation

| Impact on defined benefit obligation
| Change in assumption | Increase in assumption | Decrease in assumption
Discount rate | 0.50% | Decrease by 4.9% | Increase by 5.5%
Salary growth rate | 0.50% | Increase by 1.1% | Decrease by 1.0%
Pension growth rate | 0.50% | Increase by 4.1% | Decrease by 3.7%
Life expectancy | 1 year | Increase by 3.6% | Decrease by 3.5%

The Group defines following actuarial risks associated with defined benefit plans:
49
Interest risk
The obligations are assessed using market rates of high-quality corporate or government bonds
to discount the obligations and are therefore subject to any volatility in the movement of the
market rate. The net interest income or expense recognised in profit and loss are also calculated
using the market rate of interest.
Life expectancy
In the event that members live longer than assumed, the obligations may be understated
originally and a deficit may emerge if funding has not adequately provided for the increased life
expectancy.
Defined benefit plan summary by country as at 31 December 2023

EUR million | Finland | Germany | Sweden | Other | Total
Present value of funded obligations | 167 | 5 | 277 | 151 | 600
Present value of unfunded obligations | 0 | 131 | 20 | 23 | 174
Defined benefit obligations (DBO) | 167 | 136 | 297 | 174 | 775
Fair value of plan assets | -160 | -5 | -271 | -142 | -578
Net obligation in the balance sheet | 7 | 131 | 26 | 32 | 197
Represented by |  |  |  |  |
Defined benefit pension plans | 7 | 131 | 26 | 9 | 174
Other post-employment benefits | 0 | 0 | 0 | 23 | 23
Net obligation in the balance sheet | 7 | 131 | 26 | 32 | 197

Defined benefit plan summary by country as at 31 December 2022

EUR million | Finland | Germany | Sweden | Other | Total
Present value of funded obligations | 172 | 3 | 226 | 163 | 563
Present value of unfunded obligations | 0 | 134 | 15 | 24 | 173
Defined benefit obligations (DBO) | 172 | 137 | 241 | 187 | 736
Fair value of plan assets | -157 | -4 | -266 | -150 | -577
Net obligation in the balance sheet | 15 | 134 | -26 | 36 | 159
Represented by |  |  |  |  |
Defined benefit pension plans | 15 | 134 | -26 | 13 | 136
Other post-employment benefits | 0 | 0 | 0 | 23 | 23
Net obligation in the balance sheet | 15 | 134 | -26 | 36 | 159

Finland
In Finland the employees are entitled to a statutory pensions benefit determined by Employee's
pension Act (TyEL). These benefits are defined as contribution benefits. They are insured with
an insurance company and provide coverage for old age, disability and death. Charge in the
income statement from contribution benefits is EUR 62 (64) million.
In addition, the Group has additional defined benefit plans which resulted in a charge of EUR
0 (0) million excluding finance costs. Defined benefit plans and plan assets are managed by
insurance companies. Details of the exact structure and investment strategy surrounding plan
assets are not available to participating employers, as the assets actually belong to the
insurance companies themselves. The assets are managed in accordance with EU regulations,
and also national requirements, under which there is an obligation to pay guaranteed benefits
irrespective of market conditions.
Germany
German pension costs amounted to EUR 3 (6) million, of which EUR 3 (6) million related to
defined contribution plans and EUR 0 (1) million to defined benefits excluding finance costs. The
net defined benefit obligation amounted to EUR 131 (134) million.
Defined benefit pension plans are mainly accounted for in the statement of financial position
through book reserves with some minor plans using insurance companies or independent
trustees. Retirement benefits are based on years worked and salaries received during the
pensionable service and the commencement of pension payments are linked to the national
pension scheme’s retirement age. Pensions are paid directly by the companies themselves to
their former employees. The security for the pensioners is provided by the legal requirement that
the book reserves held in the statement of financial position are insured up to certain limits.
Sweden
In Sweden, all blue-collar staff and part of white-collar staff are covered by defined contribution
plans, the charge in the Income statement being EUR 53 (54) million. Defined benefit plans are
covering the remaining white-collar staff and resulted in a charge of EUR 3 (1) million excluding
finance costs. The net defined benefit obligation amounted to EUR 26 (net asset EUR -26)
million. The increase in net obligation arose mainly from changes in actuarial assumptions,
especially from an decrease in discount rate. Stora Enso has undertaken to pay all local legal
pension obligation for the main ITP scheme to the foundation, thus the remaining obligation
relates to other small plans. The long-term investment return target for the foundation is a 3%
real return after tax.
Other countries
The net defined benefit obligation in the remaining countries amounted to EUR 32 (EUR 36)
million. The change in net obligation arose mainly from changes in actuarial assumptions.
Plan assets

| 2023 | 2022
EUR million | Quoted | Unquoted | Total | % of total | Quoted | Unquoted | Total | % of total
Equity | 89 | 7 | 96 | 17% | 88 | 12 | 101 | 17%
Debt | 41 | 51 | 92 | 16% | 46 | 44 | 90 | 16%
Property | 0 | 62 | 62 | 11% | 0 | 55 | 55 | 9%
Cash | 5 | 0 | 5 | 1% | 10 | 0 | 10 | 2%
Assets held by insurance companies | 0 | 228 | 228 | 39% | 0 | 226 | 226 | 39%
Others | 7 | 89 | 96 | 17% | 0 | 96 | 96 | 17%
Total pension fund assets | 142 | 436 | 578 | 100% | 144 | 433 | 577 | 100%
Plan assets do not include any real estate or other assets occupied by the group or the Company's own financial instruments.

The two main financial factors affecting Group's pension obligation are changes in interest rates
and inflation expectations. The aim of asset investment allocations is to neutralise these effects,
secure solvency for benefit payments and maximise returns.
50
3.4 Employee variable compensation and equity incentive schemes
Accounting principles
Share awards
The costs of all employee-related share-based payments are charged to the consolidated income statement
as personnel expenses over the vesting period.
All share-based payment transactions are classified as equity-settled share awards. The equity-settled
share awards (net of tax), are measured at the fair value of the equity instruments on the grant date, and are
adjusted for the present value of expected dividends. The fair value of the equity-settled share-based
payments determined on the grant date is expensed on a straight-line basis over the vesting period, based on
the estimate of equity instruments that will eventually vest, with a corresponding increase in equity.
Short term incentive (STI) programmes
Salaries for senior management are negotiated individually. Stora Enso has incentive plans that
take into account the performance, development and results of both business units and
individual employees. This performance-based variable compensation system is based on
profitability as well as on attaining key business targets.
Group Executives, as well as division and business unit management have STI programmes
in which the payment is calculated as a percentage of the annual base salary with a maximum
level ranging from 7% to 100%. Non-management employees participate in an STI programme
with a maximum incentive level of 7%. All incentives are discretionary. These performance-
based programmes cover most employees globally, where allowed by local practice and
regulations. For the performance year 2023, the annual incentive programmes were based on
financial measures as well as targets related to operational efficiency, emission reduction, safety
and individual targets. The financial success metrics in the STI programme 2023 are Sales
growth and EBITDA.
Long term incentive (LTI) programmes
Since 2005, new share based programmes for executives have been launched every year. The
2021 programme, ending in 2023 and settled in 2024 has a three one-year performance periods
which are accumulated after three years. The 2022 and 2023 programmes, features
performance metrics with one-year performance periods which are accumulated after three
years as well as three-years performance periods. All outstanding programmes will be settled in
one portion after three years.
For the vast majority of awarded employees, three quarters (75%) of the opportunity under
the programmes are in performance shares, where shares will vest in accordance with
performance criteria proposed by the People and Culture Committee and approved by the Board
of Directors. The financial performance metrics are 3-year Economic Value Added (EVA) and
Earnings Per Share (EPS) for the Stora Enso Group for the 2021 programme and EPS and
Relative Total Shareholder Return for the 2022 and 2023 programme, which in addition feature
ESG metrics (emissions reduction and diversity). One quarter (25%) of the opportunity under the
programmes are in Restricted Shares, for which vesting is only subject to continued
employment. Members of the GLT have been awarded performance shares only.
Outstanding restricted and performance share opportunities before taxes are shown in the
table below. The total number of shares actually transferred will be less than that shown below
because a portion of shares corresponding to employees' tax obligation will be withheld to cover
income tax.
Share awards at 31 December 2023

| Outstanding restricted and performance share awards at year end
Number of shares | 2024 | 2025 | 2026 | Total
2021 programme | 649,329 |  |  | 649,329
2022 programme |  | 719,101 |  | 719,101
2023 programme |  |  | 1,060,720 | 1,060,720
Total | 649,329 | 719,101 | 1,060,720 | 2,429,150

The costs of the Stora Enso share-based programmes are recognised as costs over the vesting
period, which is the period between the grant and vesting. The total impact of share-based
programmes in the income statement amounted to an expense of EUR 4 (EUR 8) million, all of
which were related to restricted and performance share awards.
51
4 Operating capital
4.1 Intangible assets, property, plant and equipment and right-of-use
assets
Accounting principles
Goodwill
Goodwill represents future economic benefits arising from assets that are not capable of being individually
identified and separately recognised by the Group on an acquisition. Goodwill is computed as the excess of
the cost of an acquisition over the fair value of the Group’s share of the fair value of net assets of the
acquired subsidiary at the acquisition date and is allocated to those groups of cash generating units expected
to benefit from the acquisition. Goodwill arising on the acquisition of non-euro foreign entities is treated as an
asset of the foreign entity denominated in the local currency and translated at the closing rate.
Goodwill is not amortised but tested for impairment on an annual basis, or more frequently if there is an
indication of impairment.
Other intangible assets
Intangible assets are stated at their historical cost and amortised on a straight-line basis over their expected
useful lives, which usually varies from 3 to 10 years and up to 20 years for patents. An adjustment is made for
any impairment. Intangible items acquired must be recognised as assets separately from goodwill if they
meet the definition of an asset, are either separable or arise from contractual or other legal rights, and their
fair value can be measured reliably.
The cost of development or acquisition of new software clearly associated with an identifiable a sset that
will be controlled by the Group and has a probable benefit exceeding its cost beyond one year is recognised
as an intangible asset and will be amortised over the expected useful life of the software between 3 to 10
years.
Intangible assets recognised separately from goodwill in acquisitions consist of marketing and customer-
related or contract and technology-based intangible assets. Typical marketing and customer-related assets
include trademarks, trade names, service marks, collective marks, certification marks, customer lists, order or
production backlogs, customer contracts and the related customer relationships. Contract and technology-
based intangible assets are normally licensing and royalty agreements or patented technology and trade
secrets, such as confidential formulas, processes or recipes. The initial fair val ue of customer contracts and
related relationships is derived from expected retention rates and cash flow over the customers’ remaining
estimated lifetime using excess earnings method. The initial fair value of trademarks is derived from a
discounted cash flow analysis using the relief from royalty method.
Property, plant and equipment
Property, plant and equipment acquired by Group companies are stated at their historical cost, which are
augmented where appropriate by asset retirement costs. Assets arising on the acquisition of a new subsidiary
are stated at fair value at the date of acquisition. Depreciation is computed on a straight-line basis and
adjusted for any impairment and disposal charges. The carrying amount represents the cost deducted by
received grants and subsidies and less the accumulated depreciation and any impairment charges. Interest
costs on borrowings to finance the construction of assets are capitalised as part of the cost during the
construction period when the requirements are fulfilled.
Land and water areas are not depreciated, as these are deemed to have an indefinite life, but otherwise
depreciation is based on the following expected useful lives:

Asset class | Depreciation years
Buildings, industrial | 10-50
Buildings, office & residential | 20-50
Groundwood mills | 15-20
Hydroelectric power | 40
Paper, board and pulp mills, main machines | 20-30
Heavy machinery | 10-20
Converting factories | 10-15
Sawmills | 10-15
Computers | 3-5
Vehicles | 5
Office equipment | 3-5
Railway, harbours | 20-25
Forest roads | 10-15
Roads, fields, bridges | 15-20

Ordinary maintenance and repair charges are written as expensed when incurred, but the costs of significant
renewals and improvements are capitalised and depreciated over the remaining useful lives of the related
assets. Retirements, sales and disposals of property, plant and equipment are recorded by deducting the cost
and accumulated depreciation from the accounting records with any resulting terminal depreciation
adjustments reflected in impairment charges in the consolidated income statement. Capital gains are shown
in other operating income.
Spare parts are accounted for as property, plant and equipment if they are major and used over more than
one period, or if they are used only in connection with an item of property, plant and equipment. In all other
cases, spare parts are carried as part of the inventory and recognised in profit or loss as consumed items.
Right-of-use (ROU) assets
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. ROU assets are initially measured at cost, which comprises the initial amount
of the lease liability adjusted mainly for lease payments made at or before the commencement date. The
Group allocates the consideration in the contract to each lease component and will separate non-lease
components if these are identifiable. Lease terms are negotiated on an individual basis and contain a wide
range of different terms and conditions.
The ROU assets are subsequently depreciated using the straight line method from the commencement
date to the earlier of the end of the lease term or the end of the useful life of the ROU asset. In addition, the
ROU asset is adjusted for certain remeasurements of the lease liability.
The Group has elected not to recognise ROU assets for short-term leases that have a lease term of 12
months or less and leases of low value assets. Leases of low value assets mainly include IT and office
equipment, certain vehicles and machinery and other low value items. The Group recognises the lease
payments associated with these leases as an expense on a straight-line basis over the lease term, see note
2.2 Other operating income and expense, for more information.
52
Intangible assets

EUR million | Computer software | Customer relationships and trademarks | Other intangible assets | Assets in progress | Goodwill | Total
Acquisition cost |  |  |  |  |  |
At 1 January 2022 | 226 | 0 | 103 | 7 | 532 | 867
Translation difference | 0 | 0 | -1 | 0 | -2 | -4
Reclassifications | 5 | 0 | 2 | -4 | 0 | 3
Additions | 3 | 0 | 2 | 16 | 0 | 21
Disposals 1 | -11 | 0 | -6 | 0 | -28 | -46
At 31 December 2022 | 222 | 0 | 100 | 18 | 502 | 842
Translation difference | -1 | 0 | -3 | 0 | -3 | -7
Reclassifications | 5 | 0 | 0 | 0 | 0 | 5
Additions | 15 | 206 | 6 | 18 | 349 | 594
Disposals and classification as held for sale 1 | -13 | 0 | 77 | 0 | 0 | 64
At 31 December 2023 | 229 | 206 | 179 | 36 | 848 | 1,498
Accumulated amortisation and impairment |  |  |  |
At 1 January 2022 | 178 | 0 | 34 | 0 | 250 | 462
Translation difference | 0 | 0 | 0 | 0 | -3 | -3
Disposals 1 | -11 | 0 | -6 | 0 | 0 | -17
Amortisation | 17 | 0 | 8 | 0 | 0 | 24
Impairment | 1 | 0 | 0 | 0 | 11 | 12
At 31 December 2022 | 185 | 0 | 35 | 0 | 258 | 478
Translation difference | -1 | 0 | -2 | 0 | -1 | -3
Disposals and classification as held for sale 1 | -9 | 0 | 93 | 0 | 0 | 85
Amortisation | 17 | 16 | 8 | 0 | 0 | 41
Impairment | 6 | 0 | 14 | 3 | 85 | 109
At 31 December 2023 | 198 | 16 | 149 | 3 | 343 | 709
Net Book Value at 31 December 2023 | 31 | 190 | 30 | 32 | 505 | 789
Net Book Value at 31 December 2022 | 38 | 0 | 65 | 18 | 244 | 364
1 Company disposals are included in Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale.

Included in Customer relationships and trademarks, as part of the acquisition of De Jong
Packaging Group, are customer related intangibles purchased with a carrying amount of EUR
156 million and a remaining amortisation period of 14 years and marketing related intangibles of
EUR 34 million with remaining amortisation periods of between 4–19 years.
Property, plant and equipment

EUR million | Land and water | Buildings and structures | Plant and equipment | Other tangible assets | Assets in progress | Total
Acquisition cost |  |  |  |  |  |
At 1 January 2022 | 117 | 3,355 | 13,421 | 448 | 394 | 17,735
Translation difference | -1 | -12 | -266 | -11 | -10 | -300
Reclassifications | 0 | 57 | 207 | 10 | -277 | -3
Reclassifications to biological assets | 0 | -2 | -1 | 0 | 0 | -3
Additions | 6 | 33 | 217 | 4 | 373 | 634
Disposals 1 | -19 | -390 | -2,668 | -58 | -27 | -3,162
At 31 December 2022 | 103 | 3,041 | 10,909 | 393 | 454 | 14,900
Translation difference | 1 | -22 | -17 | -2 | 7 | -32
Reclassifications | 0 | 25 | 260 | 8 | -298 | -5
Reclassifications to biological assets | 0 | -2 | -1 | 0 | 0 | -3
Additions | 5 | 77 | 434 | 14 | 583 | 1,113
Disposals and classification as held for sale 1 | -1 | -286 | -956 | -10 | -6 | -1,259
At 31 December 2023 | 109 | 2,833 | 10,629 | 404 | 739 | 14,714
Accumulated depreciation and impairment |  |  |  |
At 1 January 2022 | 3 | 2,113 | 10,164 | 380 | 14 | 12,674
Translation difference | 0 | -30 | -262 | -9 | 0 | -302
Disposals 1 | -1 | -378 | -2,458 | -49 | 0 | -2,886
Depreciation | 0 | 78 | 371 | 10 | 1 | 460
Impairments and reversals | 0 | 21 | 68 | 4 | 2 | 95
At 31 December 2022 | 2 | 1,804 | 7,882 | 336 | 16 | 10,040
Translation difference | 0 | -4 | 7 | -1 | 0 | 1
Disposals and classification as held for sale 1 | 0 | -180 | -742 | -9 | 0 | -931
Depreciation | 0 | 74 | 349 | 10 | 0 | 433
Impairments and reversals | 0 | 133 | 488 | 5 | 1 | 628
At 31 December 2023 | 2 | 1,827 | 7,984 | 340 | 17 | 10,170
Net Book Value at 31 December 2023 | 107 | 1,006 | 2,644 | 64 | 722 | 4,544
Net Book Value at 31 December 2022 | 101 | 1,237 | 3,027 | 57 | 437 | 4,860
1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale.

53
Right-of-use assets

EUR million | Land and water | Forest land | Buildings and structures | Plant and equipment and other | Total
Acquisition cost |  |  |  |  |
At 1 January 2022 | 107 | 253 | 104 | 127 | 591
Translation difference | -2 | -2 | -3 | -1 | -7
Reclassifications to biological assets | 0 | -17 | 0 | 0 | -17
Additions | 1 | 6 | 20 | 18 | 45
Disposals 1 | -2 | 0 | -23 | -36 | -62
Other changes | 1 | 2 | 0 | 4 | 6
At 31 December 2022 | 105 | 243 | 96 | 113 | 556
Translation difference | -5 | -14 | -1 | 0 | -19
Reclassifications to biological assets | 0 | -16 | 0 | 0 | -16
Additions | 0 | 5 | 188 | 14 | 207
Disposals and classification as held for sale 1 | -75 | -181 | -26 | -21 | -303
Other changes | 1 | 15 | 7 | 3 | 26
At 31 December 2023 | 25 | 52 | 264 | 109 | 451
Accumulated depreciation and impairment |  |  |  |
At 1 January 2022 | 8 | 18 | 55 | 69 | 150
Translation difference | 0 | -1 | -2 | -2 | -4
Disposals 1 | -1 | 0 | -23 | -34 | -58
Depreciation | 3 | 5 | 19 | 23 | 50
Impairment | 0 | 0 | 1 | 0 | 0
At 31 December 2022 | 10 | 22 | 49 | 56 | 138
Translation difference | -1 | -1 | 0 | 0 | -3
Disposals and classification as held for sale 1 | -36 | -24 | -20 | -20 | -100
Depreciation | 3 | 3 | 32 | 21 | 59
Impairment | 28 | 0 | 3 | 2 | 33
At 31 December 2023 | 4 | 0 | 64 | 60 | 128
Net Book Value at 31 December 2023 | 21 | 52 | 201 | 49 | 323
Net Book Value at 31 December 2022 | 95 | 221 | 47 | 57 | 418
1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale.

Stora Enso’s most material right-of-use assets capitalised consist of land areas used in forestry
and industrial operations, various machinery and equipment leases including operative
machinery and logistic equipment, as well as properties including offices, warehouses and other
operative properties. Some of the leases contain renewal options and extension options that are
considered in the lease term if the Group is reasonably certain to exercise the option.
See notes 5.3 Interest-bearing assets and liabilities for more details about lease liabilities and
2.2 Other operating income and expense for details about lease expenses included in the
income statement.
Intangible assets and property, plant and equipment, and right-of-use asset
additions
The total capital expenditure excluding investments in biological assets for the year amounted to
EUR 1,054 (701) million. Details of ongoing projects and future plans are discussed in more
detail in the Report of the Board of Directors.
4.2 Forest assets
Accounting principles
The forest assets of Stora Enso are defined as standing growing trees, classified as biological assets, and
related forest land. The biological assets of Stora Enso consist of standing trees to be used as raw material in
pulp and mechanical wood production and as biofuels.
Forest asset valuation is based on continuous operations and sustainable forest management, also taking
into consideration environmental restrictions and other reservations. Biological assets are recognised and
valued in accordance with the IAS 41 Agriculture standard at fair value and forest land assets are recognised
in accordance with the IAS 16 Property, plant and equipment standard. Leased forest land assets are
presented as part of right-of-use assets in note 4.1 Intangible assets, property, plant and equipment and right-
of-use assets.
Nordic and plantation forest assets are classified as different classes of assets due to different nature,
usage and characteristics of the assets. The main difference is the short-term growing cycle of 6–12 years in
plantations versus the long-term growing cycle of 60-100 years in Nordic forests. There are also differences
in regeneration methods, forest management, and the use of the assets for other purposes.
Nordic forest assets include holdings in Sweden and Finland and plantation forest assets include holdings
in China, Brazil and Uruguay. Accounting policies for the different class of forest assets are presented
separately below. In addition the Group has minor forest asset holdings in Estonia and Romania through
associate company Tornator. The Group has forest assets in its own subsidiaries in Sweden and China as
well as in joint operations in Brazil and Uruguay, and in associate company in Finland. Stora Enso also
ensures that the Group’s share of the valuation of forest holdings in associated companies and joint
operations are consistent with Group accounting policies. At harvesting, biological assets are transferred to
the inventory.
Nordic forest assets
Forest assets in Sweden and Finland are recognised at fair value and valued by using a market approach
method on the basis of the forest market transactions in the areas where Stora Enso’s forests are located.
Stora Enso’s forest assets create value by securing wood supply, increasing long-term yield, optimising land
use and securing financial flexibility. They play an important role in mitigating climate change impacts, as
growing trees absorb CO 2. The forests also offer opportunities for future value streams, such as wind power.
The total forest assets value is calculated with verified inventory data and regional standing stock prices,
considering among others:
• regional market transaction data based on the forest assets' geographical locations,
• standing stock prices by forest cubic meter (m 3 fo) combined from traded forest estates and
• regional standing stock inventory.
Information relating to forest asset transactions are available from market data suppliers. Stora Enso is
applying three-year weighted average market transaction prices and this is considered to include a sufficient
amount of transactions and is estimated to represent market conditions at the reporting date. The market
transaction information can be viewed as market-corroborated inputs. Certain adjustments are made to refine
the market-corroborated inputs using unobservable inputs, therefore inputs are categorised to fair value
hierarchy measurement level 3. The judgements are further explained in note 1.2 Critical accounting
estimates and judgements.
The total value of the forest assets in Nordics is allocated across biological assets and forest land.
Allocation of the combined fair value of forest assets is based on the income approach where separate
present values of expected net cash flows are calculated for both biological assets and forest land. The
54
discount rate is determined as the rate at which the valuation based on market transaction prices matches
the total forest assets combined cash flows for biological assets and forest land. The discount rate is
estimated to be the same for biological assets and forest land as the nature and timing of the cash flows are
similar.
Biological assets are measured at fair value in accordance IAS 41. The fair value is based on the income
approach and the discounted cash flow method whereby the fair value of the biological assets is calculated
using cash flows from continuous operations, taking into account the growth potential of one cycle. Forest
land is measured at fair value using the revaluation method as defined in the IAS 16 standard. Fair value of
forest land is measured based on income approach, including net cash flows related to trees to-be-planted in
the future as well as other land related income, such as hunting rights, wind power leases and soil material
sales.
Changes in the fair value of biological assets are recognised in the income statement. Changes in the fair
value of forest land, net of deferred taxes, are recognised in other comprehensive income (OCI) and
accumulated in a revaluation reserve in equity. Revaluation reserve is not recycled to the income statement
upon disposal. If the fair value of forest land were to be less than cost, the difference would be recognised in
the income statement as an impairment loss.
Plantation forest assets
In plantation forest areas, biological assets are recognised at fair value in accordance with the IAS 41
standard and based on the income approach in those areas where the Group has forest land. Fair value
measurement is based on fair value hierarchy measurement level 3. Forest land is measured initially and
subsequently at cost, using the cost model as defined in IAS 16 standard.
The valuation of biological assets is based on the discounted cash flow method calculated using cash
flows from continuous operations and based on sustainable forest management, taking into account growth
potential of one cycle. The fair value of the biological assets is based on the productive forest land. The
yearly harvest from the forecasted tree growth is multiplied by wood prices and the cost of silviculture and
harvesting is deducted. The fair value of the biological assets is measured as the present value of the harvest
from one growth cycle, taking into consideration environmental restrictions and other reservations. The
discount rate applied is determined using the weighted average cost of capital method.
Young standing timber less than two years old (less than three years in Montes del Plata) is considered to
be an immature asset and accounted at cost. Fair value is deemed to approximate the cost when little
biological transformation has taken place or the impact of the transformation on the price is not expected to
be significant, which varies according to the location and species of the assets.
Changes in the fair value of biological assets are recognised in the income statement. The forest land is
measured at cost and not depreciated.
The value of forest assets disclosed in the consolidated statement of financial position from
subsidiary companies and joint operations amounts to EUR 6,921 (6,846) million as shown
below. The Group’s indirect share of forest assets held by associated company amounts to EUR
1,417 (1,271) million. The total forest asset value, excluding leased forest land and including
forest assets classified as held for sale, amounts to EUR 8,522 (8,117) million.
Forest assets

| Biological assets | Forest land 2 | Forest assets total
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Subsidiaries and joint operations |  |  |  |  |  |
Value at 1 January | 4,531 | 4,547 | 2,315 | 2,201 | 6,846 | 6,747
Translation differences | 2 | -305 | 0 | -145 | 2 | -449
Unrealized change in fair value 1 | 385 | 336 | -49 | 259 | 335 | 596
Additions | 71 | 77 | 1 | 2 | 72 | 78
Disposals and classification as held for sale 3 | -181 | -2 | 2 | -2 | -178 | -4
Change due to harvesting 1 | -168 | -141 | 0 | 0 | -168 | -141
Other operative changes 1 | -7 | -1 | 0 | 0 | -7 | -1
Reclassification from PPE | 20 | 20 | 0 | 0 | 20 | 20
Value at 31 December | 4,652 | 4,531 | 2,269 | 2,315 | 6,921 | 6,846
Classified as held for sale | 184 | 0 | 0 | 0 | 184 | 0
Associated company |  |  |  |  |  |
Tornator Oyj (41%) | 1,287 | 1,122 | 130 | 149 | 1,417 | 1,271
Value at 31 December | 1,287 | 1,122 | 130 | 149 | 1,417 | 1,271
Total | 6,123 | 5,653 | 2,399 | 2,464 | 8,522 | 8,117
1 For biological assets, changes are presented in the profit and loss. For forest land, changes in fair value are recognised directly in equity. 2 Not including leased forest land. 3 Assets held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale.

55
Valuation and standing stock of forest assets

|  |  | As at 31 December 2023 |
|  |  | Swedish forests | Guangxi 3 | Veracel (50%) | MdP (50%) | Tornato r (41%) | Total
Total area |  | Thousand ha | 1,383 | 70 | 116 | 138 | 310 | 2,016
- of which owned |  | Thousand ha | 1,383 | — | 104 | 95 | 310 | 1,892
- of which leased |  | Thousand ha | — | 70 | 12 | 43 | — | 125
Productive area |  | Thousand ha | 1,139 | 61 | 49 | 92 | 285 | 1,627
Total area | Standing stock | million m 3 fo.1 | 151.9 | 4.3 | 6.1 | 15.0 | 33.7 | 210.8
Productive area | Standing stock | million m 3 fo.1 | 149.7 | 4.3 | 6.1 | 15.0 | 33.4 | 208.4
| Estimated growth | million m 3 fo.1 | 5.8 | 1.3 | 2.2 | 2.0 | 1.5 | 12.8
| Harvesting | million m 3 fo.1 | -4.2 | -1.2 | -1.3 | -2.3 | -1.4 | -10.5
| Other changes | million m 3 fo.1 | -2.5 | 0.0 | 0.0 | -0.3 | 0.6 | -2.1
| Harvesting | million m 3 u.b.2 | -3.5 | -1.0 | -1.1 | -1.9 | -1.1 | -8.6
Biological assets |  | EUR million | 4,239 | 184 | 124 | 288 | 1,287 | 6,123
Biological assets | Productive area | EUR/ha | 3,723 | 3,010 | 2,531 | 3,121 | 4,509 | 3,764
Forest land |  | EUR million | 2,072 | — | 30 | 167 | 130 | 2,399
Total forest assets | EUR million | 6,312 | 184 | 154 | 455 | 1,417 | 8,522
Leased forest land | EUR million | — | 157 | 4 | 48 | — | 209
1 Forest cubic meters 2 Solid under bark (sub) cubic meters 3 Classified as held for sale

|  |  | As at 31 December 2022 |
|  |  | Swedish forests | Guangxi | Veracel (50%) | MdP (50%) | Tornator (41%) | Total
Total area |  | Thousand ha | 1,389 | 73 | 113 | 138 | 301 | 2,014
- of which owned |  | Thousand ha | 1,389 | — | 105 | 95 | 300 | 1,890
- of which leased |  | Thousand ha | — | 73 | 8 | 43 | — | 124
Productive area |  | Thousand ha | 1,142 | 64 | 47 | 92 | 277 | 1,622
Total area | Standing stock | million m 3 fo.1 | 152.7 | 4.2 | 5.2 | 15.5 | 33.2 | 210.8
Productive area | Standing stock | million m 3 fo.1 | 150.5 | 4.1 | 5.2 | 15.5 | 32.8 | 208.1
| Estimated growth | million m 3 fo.1 | 5.8 | 1.3 | 1.8 | 3.2 | 1.5 | 13.6
| Harvesting | million m 3 fo.1 | -4.6 | -1.2 | -1.7 | -1.8 | -1.3 | -10.7
| Other changes | million m 3 fo.1 | -1.1 | -0.8 | 0.0 | 0.2 | -0.1 | -1.8
| Harvesting | million m 3 u.b.2 | -3.8 | -1.0 | -1.4 | -1.5 | -1.2 | -8.9
Biological assets |  | EUR million | 3,963 | 196 | 103 | 269 | 1,122 | 5,653
Biological assets | Productive area | EUR/ha | 3,471 | 3,062 | 2,162 | 2,922 | 4,054 | 3,485
Forest land |  | EUR million | 2,113 | — | 29 | 173 | 149 | 2,464
Total forest assets | EUR million | 6,076 | 196 | 131 | 441 | 1,271 | 8,117
Leased forest land | EUR million | — | 166 | 3 | 52 | — | 221
1 Forest cubic meters 2 Solid under bark (sub) cubic meters

Subsidiaries and joint operations
At the end of 2023, forest assets, including assets held for sale in China (excluding leases),
were located by value, in Sweden 89% (89%), China 3% (3%), Brazil 2% (2%) and Uruguay 6%
(6%). The total area amounts to 1,706 (1,713) thousand hectares of which 7% (7%) is leased
and under 0% (1%) is restricted. From Stora Enso's total forest holdings 1,341 (1,345) thousand
hectares is productive forest area. The Montes del Plata and Veracel amounts take into account
the ownership share.
Swedish forests
At the end of 2023, the value of the biological assets in Swedish forests amounted to EUR 4,239
(3,963) million, related forest land amounted to EUR 2,072 (2,113) million and the total forest
assets amounted to EUR 6,312 (6,076) million. The increase in the forest assets value is mainly
driven by higher market prices. Foreign exchange impact increased the value slightly. Deferred
tax liabilities related to forest assets amounted to EUR 1,297 (1,250) million. The discount rate of
3.8% (3.6%) was applied in the valuation.
The productive area in Swedish forests amounted to 1,139 (1,142) thousand hectares with a
standing stock of 149.7 (150.5) million forest m 3. The weighted three-year average market
transaction price applied in the valuation for Swedish forests assets in 2023 is EUR 42 (40) per
forest m 3. The forest asset value corresponds to an average of EUR 5,540 (5,320) per ha of
productive forest area.
The valuation of the forest assets is based on detailed transaction data and price statistics as
provided by different market data suppliers. Market transaction data is adjusted to consider the
characteristics and nature of Stora Enso's forest assets and to exclude certain non-forest assets
and outliers. The valuation takes into account where the forest land is located, price levels and
volume of standing stock. Market prices between areas varies significantly. Future changes in
value of Swedish forest assets are impacted by changes in market transaction prices and
changes in volume of standing stock, considering growth and other changes. See also note 1.2
Critical accounting estimates and judgements for information related estimates and judgment
applied in the valuation.
Fore st asset location and volume

2023 |  | North | Middle | South | Total
Productive area | Thousand ha | 186 | 953 | 0 | 1,139
Percentage of total | % | 16% | 84% | 0% | 100%
Standing stock | million m 3 fo. | 16.9 | 132.8 | 0.0 | 149.7
Percentage of total | % | 11% | 89% | 0% | 100%

2022 |  | North | Middle | South | Total
Productive area | Thousand ha | 190 | 951 | 0 | 1,142
Percentage of total | % | 17% | 83% | 0% | 100%
Standing stock | million m 3 fo. | 17.5 | 133.0 | 0.0 | 150.5
Percentage of total | % | 12% | 88% | 0% | 100%

Gu angxi
At the end of 2023, the value of the biological assets in Guangxi, China, amounted to EUR 184
(196) million. All the forest land in China is leased. The value decrease is mainly driven by
harvesting depletion and foreign exchange impact, whereas capital expenditure and higher
volume increased the value. The biological assets included young standing timber with a value
of EUR 24 (27) million. The discount rate of 9.7% (10.2%) used in the discounted cash flows
(DCF) decreased in 2023. These forestry operations were classified as held for sale at the end
of 2023. See note 6.1 Acquisitions, disposals and assets held for sale for more details.
56
Veracel
Veracel is a 50% joint operation in Brazil. Stora Enso’s share of the biological assets was EUR
124 (103) million. The increase is mainly driven by increased prices, volume and planting,
whereas increased discount rate decreased the value. The biological assets included young
standing timber with a value of EUR 40 (31) million. The discount rate of 10.2% (7.9%) used in
the DCF increased in 2023. The related forest land is measured at cost.
Montes del Plata
Montes del Plata (MdP) is a 50% joint operation in Uruguay. Stora Enso’s share of the biological
assets was EUR 288 (269) million. The slight increase is mainly driven by higher wood price,
harvesting volume estimates and additions, whereas foreign exchange impact decreased the
value. During 2023 there were severe drought periods in Uruguay causing decreased annual
forest growth estimate compared to the previous years. The biological assets included young
standing timber with a value of EUR 48 (50) million. The discount rate of 9.0% (9.0%) is used in
the DCF in 2023. The related forest land is measured at cost.
Associated company
Tornator
Tornator Oyj is a 41% owned Finnish associate company. Stora Enso’s share of the biological
assets was EUR 1,287 (EUR 1,122) million, related forest land amounted to EUR 130 (149)
million, and total forest assets equalled to EUR 1,417 (1,271) million. The increase in the value
of forest assets is mainly driven by higher market prices and acquisitions.
Stora Enso’s share of the productive forest area totals to 285 (277) thousand hectares with a
standing stock of 33.4 (32.8) million forest m 3. The weighted three-year average market
transaction price applied in the valuation for forest assets located in Finland in 2023 is E UR 42
(42) per forest m 3. The forest asset value in Finland corresponds to an average of EUR 4,960
(4,750) p er ha of productive forest area.
Valuation sensitivities of significant assumptions of a +/- 10% movement

EUR million | Wood market prices | Growth rate | Discount rate
Guangxi | +/-26 | +/-1 | +/-3
Veracel | +/-11 | +/-11 | +/-2
Montes del Plata | +/-32 | +/-32 | +12/-11

Swedish forest asset valuation is sensitive for changes in market transaction prices and volume
of standing stock. A change in the average market price of forest assets of EUR 1 per forest m 3
would impact the value of forest assets by EUR 150 (151) million. A change in the volume of
standing stock of 1 million forest m 3 would impact the value of forest assets by EUR 42 (40)
million.
4.3 Associates
Accounting principles
Associated companies over which Stora Enso exercises significant influence are accounted for using the
equity method. Stora Enso does not control associated companies alone or jointly with other parties, but has
significant influence. The Group’s share of the associated companies profit or loss is recognised in the
consolidated income statement. The Group’s interest in an associated company is carried in the consolidated
statement of financial position at an amount that reflects its share of the net assets of the associate together
with goodwill. Goodwill arising from the acquisition of an associated companies is included in the carrying
amount of the investment and is assessed for impairment as part of that investment. There is no material
goodwill in the carrying amount of associated companies.
When the Group share of losses exceeds the carrying amount of an investment, the carrying amount is
reduced to zero and any recognition of further losses ceases unless the Group is obliged to satisfy
obligations of the investee that it has guaranteed or which it is otherwise committed to.
The Group’s share of results in associated companies is reported in the operating result to reflect the
operational nature of these investments. Similarly, dividends received from associated companies are
presented in the net cash provided by operating activities in the consolidated cash flow statement.
Principal associated company investments

|  |  | Ownership interest % | EUR million
Company | Reportable segment | Domicile and principal place of operations | 2023 | 2022 | 2023 | 2022
Tornator Oyj | Forest | Finland | 41.00 | 41.00 | 892 | 800
Others |  |  |  |  | 35 | 32
Carrying amount |  |  |  |  | 926 | 832

In 2022, Stora Enso divested its 30.41% participation in Encore Ympäristöpalvelut Oy. The
transaction did not have a material impact on the Group.
Group share of associated companies income statements

EUR million | 2023 | 2022
Sales | 126 | 147
Net operating expenses | -69 | -103
Biological asset valuation | 121 | 189
Operating result | 178 | 233
Net financial items | -12 | 40
Net result before tax | 166 | 273
Income tax | -30 | -52
Net result for the year | 136 | 221

The average number of personnel in the associated companies was 1,046 in 2023, compared
with 1,043 in 2022.
A summary of the financial information, prepared in accordance IFRS, in respect of the
Group’s material associate, Tornator Oyj is set out below. The Group’s share of Tornator Oyj is
reported in the Forest division and covers the majority of the Group’s total carrying amount of
associated companies.
57
Tornator Oyj

EUR million | 2023 | 2022
Forest Assets | 3,456 | 3,101
Other non-current assets | 73 | 70
Current assets | 102 | 73
Non-current liabilities | 851 | 752
Current liabilities | 146 | 120
Tax liabilities | 459 | 420
Sales | 194 | 176
Net result for the year | 341 | 542
Other comprehensive income | -57 | 141
Total comprehensive income | 284 | 683
Dividends received during the financial year | 60 | 25
Net assets of the associate | 2,175 | 1,952
Ownership interest | 41.00% | 41.00%
Carrying amount of the Group's interest in Tornator Oyj | 892 | 800

The Group’s current 41% ownership is valued at EUR 892 (800) million at the year-end of 2023.
The Group’s share of Tornator’s net profit was EUR 140 (222) million, including a biological
asset valuation gain net of taxes of EUR 97 (152) million.
Aggregate information of associated companies that are not individually material

EUR million | 2023 | 2022
Non-current assets | 33 | 35
Current assets | 13 | 12
Non-current liabilities | 0 | 3
Current liabilities | 11 | 12
Sales | 47 | 74
Net result for the year | -4 | -2
Dividends received during the financial year | 0 | 1
Net assets of the associates | 35 | 32
Associate company value | 35 | 32
Associate company value for Tornator Oyj | 892 | 800
Total associate company value | 926 | 832

Associated company balances

EUR million | 2023 | 2022
Receivables from associated companies |  |
Non-current loan receivables | 2 | 2
Trade receivables | 2 | 1
Liabilities to associated companies |  |
Trade payables | 128 | 101

Associated company transactions

EUR million | 2023 | 2022
Sales to associated companies | 16 | 19
Purchases from associated companies | 181 | 163

The Group engages in transactions with associated companies such as sales and purchases of
wood. All agreements are negotiated at arm’s length and are conducted on terms that the Group
considers customary in the industry and generally no less favourable than would be available
from independent third parties.
4.4 Equity instruments
Accounting principles
The Group has elected to classify its equity investments in Pohjolan Voima shares and certain listed shares
held by the Group at fair value through other comprehensive income (FVTOCI) under IFRS 9 by applying the
irrevocable election for equity instruments under the standard due to the long-term nature of the ownership.
The gains and losses resulting from changes in the fair value of equity investments under FVTOCI are not
recycled to the income statement upon impairment or disposal, only the dividend income is recognised in the
income statement. In addition, the Group also has certain equity investments in unlisted securities that are
classified as fair value through income statement. The majority of the Group's equity instruments consist of
investments in Pohjolan Voima Oyj (PVO).
Equity instruments

EUR million | 2023 | 2022
Carrying amount at 1 January | 1,445 | 918
Change in fair value - OCI | -645 | 519
Change in fair value - Income statement | 0 | 0
Additions | 18 | 10
Disposals | 0 | 0
Translation difference and other changes | 0 | -2
Carrying amount at 31 December | 819 | 1,445

58
PVO shares
The Group holds a 15.7% (15.7%) interest in Pohjolan Voima Oyj (PVO), a public limited
company in the energy sector that produces electricity and heat for its shareholders in Finland at
cost-based and non-profit making principle (Mankala-principle). Each subsidiary of the PVO
group has its own class of shares that, instead of dividends, entitle the shareholder to the energy
produced in proportion to its ownership of that class of share. Also, the shareholders then have
an obligation to cover the costs of production, which are generally lower than market prices.
Stora Enso did not receive actual dividend payments from PVO during 2023. The holding is fair
valued quarterly using the discounted cash flow meth od. Th e valuation is categorised at level 3
in the fair value hierarchy according to IFRS 13; levels are explained in 5.2 Fair values.
The electricity prices used in the valuation are based on market future derivative prices for
the first two years and on long-term electricity price estimates for the years thereafter. The
historical financial statements provide the basis for the cost structure for each power asset and
for future periods, estimates from PVO shareholder information is used when available and
these are adjusted by inflation factor in future years. The discount rate of 6.93% used in the
valuation model is determined using the weighted average cost of capital method. A +/- 5%
change in the electricity price used in the DCF would change the valuation by EUR +92 million
and -92 million, respectively. A +/- percentage point change in the discount rate would change
the valuation by EUR -140 million and +183 million, respectively.
PVO's shares are divided in different share series. The B and B2 series relate to PVO's
shareholdings in Teollisuuden Voima Oyj (TVO), which operates three nuclear plants in Finland
(Olkiluoto 1–3).Stora Enso holds an indirect share of approximately 8.9% of the capacity of the
Olkiluoto 3 nuclear plant unit through its PVO B2 shares. The Olkiluoto 3 plan t related test
production was completed in April 2023 and regular electricity production was started. Olkiluoto
3 electricity production capacity is approximately 1,600 megawatt, which corresponds to about
15% of electricity demand in Finland. As the largest nuclear power plant in Europe, Olkiluoto in
total will produce about 30% of Finland's electricity. The production of Olkiluoto 3 plays a key
role in Finland's green transition, and accelerates the move towards a carbon-neutral society
and electricity self-sufficiency.
PVO shareholding on 31 December 2023

EUR million | Share Series | % Holding | Asset Category | Fair value 2023 | Fair value 2022
Pohjolan Voima Oyj | A | 20.6 | Hydro | 226 | 307
Pohjolan Voima Oyj | B, B2 | 15.7, 14.8 | Nuclear | 546 | 1,113
Pohjolan Voima Oyj | C,C2,V,M | Various | Various | 7 | 4
Total |  |  |  | 778 | 1,423

The valuation in 2023 amounted to EUR 778 (1,423) million. The decrease in PVO’s valuation is
mainly caused by a decrease in the electricity price estimates. No deferred tax is recognised, as
under Finnish tax regulations holdings above 10% are exempt from tax on disposal proceeds.
Principal equity instruments

EUR million | Holding % | Number of shares | Acquisition cost | Fair value
Packages Ltd, Pakistan - listed shares | 6.4 | 5,396,650 | 3 | 9
Total listed securities |  |  | 3 | 9
Pohjolan Voima Oyj | 15.7 | 5,073,972 | 131 | 778
Other unlisted securities |  |  | 32 | 32
Total unlisted securities |  |  | 163 | 810
Total Equity instruments at 31 December 2023 |  |  | 166 | 819
Total Equity instruments at 31 December 2022 |  |  | 147 | 1,445

4.5 Emission rights and other non-current assets
Accounting principles
The Group participates in the European Emissions Trading Scheme, with the aim of reducing greenhouse
gas emissions. The Group has been allocated allowances to emit a fixed tonnage of carbon dioxide (CO 2)
over a fixed period of time, which are recognised as intangible assets, government grants and as liabilities for
the obligation to deliver allowances equal to those emissions that have been made during the compliance
period.
Intangible assets related to emission allowances are measured at level 1 fair value at the date of initial
recognition. The liabilities to deliver allowances are recognised based on actual emissions and are settled
using allowances on hand and measured at the carrying amount of those allowances. At the reporting date, if
the market value for the emission allowances is less than the carrying amount, any surplus allowances that
are not required to cover emissions made are impaired to the market valu e.
The Group expenses emissions made at the grant date fair value, under materials and services, together
with purchased emission rights at their purchase price. Such costs will be offset under other operating income
by the income from the original rights used at their grant date fair value. The consolidated income statement
will, thus, be neutral in respect to all the rights consumed that were within the original grant of rights. Sales of
excess emission allowances are recognised as income on the delivery date. Any net effect represents the
costs of purchasing additional rights to cover excess emissions, or the sale of unused rights in case that the
realised emissions are below the allowances received free of charge or the impairment of allowances that are
not required for own use.
Emission rights

EUR million | 2023 | 2022
Value at 1 January | 123 | 137
Emission allowances allocated | 146 | 160
Sales | -64 | -62
Settlement with the government | -98 | -85
Disposals and classification as held for sale | — | -27
Value at 31 December | 108 | 123

The liability to deliver allowances is presented in the consolidated statement of financial position
in line other operative liabilities. As of 31 December 2023, the liability to deliver allowances
amounted to EUR 79 (91) million as presented in note 4.8 Operative liabilities. The excess
emission rights held at the year end were valued at EUR 28 (32) million.
59
Other non-current assets

EUR million | 2023 | 2022
Prepaid expenses and accrued income | 25 | 22
Tax credit | 4 | 4
Other non-current operative assets | 29 | 12
Total | 58 | 38

4.6 Inventories
Accounting principles
Inventories are reported at lower of cost and net realisable value with the cost determined by the first-in first-
out (FIFO) method or, alternatively, by the weighted average cost where it approximates FIFO. The same cost
formula is used for all inventories having a similar nature and use to the Group. The cost of finished goods
and work in progress comprises raw material, direct labour, depreciation, other direct costs and related
production overheads, but excludes interest expenses. Net realisable value is the estimated selling price in
the ordinary course of business, less the costs of completion and sale.
Where market conditions result in the manufacturing costs of a product exceeding its net realisable value,
a valuation allowance is made. Valuation allowances are also made for old, slow moving and obsolete
finished goods and spare parts when needed. Such valuation allowances are deducted from the carrying
value of the inventories in the consolidated statement of financial position.

EUR million | 2023 | 2022
Materials and supplies | 384 | 501
Work in progress | 62 | 84
Finished goods | 774 | 962
Spare parts and consumables | 307 | 337
Other inventories | 29 | 25
Advance payments and cutting rights | 52 | 63
Obsolescence allowance - spare parts and consumables | -100 | -103
Obsolescence allowance - finished goods | -18 | -19
Net realisable value allowance | -25 | -40
Total | 1,466 | 1,810

EUR 6,271 (6,576) million of inventories in total have been expensed during the year. EUR 35
(78) million of inventory write-downs have been recognised as an expense. EUR 55 (9) million
have been recognised as a reversal of previous write-downs.
4.7 Operative receivables
Accounting principles
Trade receivables
Trade receivables are recognised initially at fair value and subsequently at their anticipated realisable value
with an estimate made for loss allowance on expected credit losses based on a forward-looking and objective
review of all outstanding amounts at period end. A simplified approach under IFRS 9 has been implemented
for trade receivables and loss allowances are recognised based on expected lifetime credit losses in the
consolidated income statement within other operating expenses. For non-defaulted receivables, expected
credit losses are estimated based on externally generated customer level probability of default data that is
used in the forward-looking loss allowance calculation model. The loss allowance model for non-defaulted
receivables also takes into account a macroeconomic indicator that considers the macroeconomic
developments and further incorporates forward-looking data to the calculation model. The rebuttable
presumption that default does not occur later than when a financial asset is 90 days past due has been
applied in the calculation model and a default is normally estimated to occur when trade receivables are at
least 90 days overdue or there is otherwise objective evidence supporting the conclusion that a default has
occurred. Trade receivables will be written off and booked as a credit loss only with the court's decision of
bankruptcy or in some other cases when there is objective evidence supporting the write-off. Trade
receivables are presented in current assets under operative receivables in the consolidated statement of
financial position.
Trade receivables under factoring arrangements
Stora Enso uses factoring arrangements as one of the working capital management tools. Sold trade
receivables are derecognised once significant related risks and rewards of ownership have been transferred
to the buyer. Outstanding balances for trade receivables that were not yet sold at period end but qualify to be
sold under factoring programmes in the next period, are classified as trade receivables fair valued through
other comprehensive income in accordance with the business model and contractual cash flow
characteristics tests under IFRS 9. Please refer to note 5.2 Fair values for further details.
Current operative receivables

EUR million | 2023 | 2022
Trade receivables - gross carrying amount including amount held for sale | 939 | 1,329
Trade receivables - gross carrying amount held for sale | -46 | -92
Trade receivables - gross carrying amount | 893 | 1,236
Loss allowance | -27 | -32
Prepaid expenses and accrued income | 80 | 68
Other receivables | 245 | 200
Total | 1,191 | 1,473

Age analysis of trade receivables

EUR million | 2023 | 2022
Not overdue | 841 | 1,213
Less than 30 days overdue | 57 | 55
31 to 60 days overdue | 1 | 10
61 to 90 days overdue | 3 | 2
91 to 180 days overdue | 1 | 3
Over 180 days overdue | 36 | 47
Total | 939 | 1,329

60
As at 31 December 2023, a gross amount of EUR 98 (116) million of trade receivables were
overdue. These relate to a number of countries and unrelated customers that have no recent
history of default. At 31 December 2023, lifetime expected credit losses for trade receivables
amounted to EUR 27 (32) million. Loss allowances for trade receivables are estimated on an
individual basis based on a forward-looking model where estimated probabilities of customer
default are used in the calculation model. If the Group has concerns regarding the financial
status of a customer, an advance payment or an irrevocable letter of credit drawn from a bank is
required. At the year end, the letters of credit awaiting maturity totalled EUR 54 (74) million.
Please refer to note 5.1 Financial risk management for details of customer credit risk
management.
Age analysis of loss allowance

EUR million | 2023 | 2022
Not overdue and less than 90 days overdue | 2 | 5
91 to 365 days overdue | 2 | 7
Over 365 days overdue | 23 | 21
Total | 27 | 32

Reconciliation of loss allowance

EUR million | 2023 | 2022
Opening balance at 1 January | 32 | 26
Change in loss allowance booked through income statement | 9 | 13
Write-offs | -15 | -6
Other | 1 | 0
Closing balance at 31 December | 27 | 32

The actual credit losses during 2023 amounted to EUR 15 (6) million of trade receivables being
written-off from the Group's balance sheet.
Stora Enso has entered into factoring agreements to sell trade receivables in order to
accelerate cash conversion. These agreements resulted in full derecognition of trade receivables
amounting to a nominal value of EUR 178 (174) million at the end of the year. The continuing
involvement of Stora Enso in the sold receivables was estimated as being insignificant due to
the non-recourse nature of the factoring arrangements involved.
4.8 Operative liabilities
Non-current operative liabilities

EUR million | 2023 | 2022
Share-based payments | 2 | 2
Other payables | 9 | 9
Total | 11 | 11

Current operative liabilities

EUR million | 2023 | 2022
Trade payables | 1,582 | 1,831
Payroll and staff-related accruals | 224 | 245
Accrued liabilities and deferred income | 112 | 130
Emission liabilities | 79 | 91
Advances received | 18 | 18
Other payables 1 | 96 | 94
Total | 2,112 | 2,410
1 Other payables consist especially of taxes payable to government, such as VAT and payroll taxes.

4.9 Provisions
Accounting principles
Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable
estimate of the amount of the obligation can be made. Provisions are measured at the management’s best
estimate and there is some uncertainty regarding the timing and amount of the costs. Provisions for
obligations to dismantle, remove or restore assets after their use are added to the carrying amount of the
assets at acquisition date and depreciated over the useful life of the asset. Provisions are discounted to their
current net present value if the effect of the time value of money is material.
Environmental provisions
Environmental expenditures resulting from the remediation of an existing condition caused by past
operations, and which do not contribute to current or future revenues, are recognised as provisions.
Environmental provisions are recorded when it is probable, based on current interpretations of environmental
laws and regulations, that a present obligation has arisen and the amount of such liability can be reliably
estimated.
Restructuring provisions
A restructuring provision is recognised in the period in which the Group becomes legally or constructively
committed to the plan. The relevant costs are those that are incremental to, or incurred as a direct result of,
the exit plan, or are the result of a continuing contractual obligation with no ongoing economic benefit, or
represent a penalty incurred to cancel the obligation.
Other provisions
Other provisions are recognised regarding different legal or constructive obligations, such as reforestation,
onerous contracts, ongoing lawsuits, claims, or similar.
61
Provisions

EUR million | Environmental provisions | Restructuring provisions | Other provisions | Total provisions
Carrying Value at 1 January 2022 | 75 | 88 | 67 | 231
Translation difference | -4 | -3 | -2 | -9
Disposals and classification as held for sale | -3 | -1 | 0 | -4
Charge in Income Statement |  |  |  |
New provisions | 14 | 8 | 19 | 40
Increase in existing provisions | 1 | 12 | 2 | 15
Reversal of existing provisions | -1 | -16 | -8 | -25
Payments | -9 | -66 | -50 | -124
Carrying Value at 31 December 2022 | 73 | 21 | 30 | 124
Translation difference | 0 | 0 | 1 | 1
Disposals and classification as held for sale | 3 | 0 | 0 | 3
Charge in Income Statement |  |  |  |
New provisions | 7 | 89 | 12 | 107
Increase in existing provisions | 4 | 4 | 1 | 8
Reversal of existing provisions | -16 | -7 | 0 | -22
Payments | -9 | -31 | -14 | -54
At 31 December 2023 | 63 | 77 | 28 | 168
Allocation between current and non- current provisions |  |  |  |
Current provisions: Payable within 12 months | 1 | 72 | 12 | 85
Non-current provisions: Payable after 12 months | 61 | 5 | 16 | 83
Total at 31 December 2023 | 63 | 77 | 28 | 168

The Group has undergone major restructuring in recent years, from divestments to mill closures
and administrative cost-saving programmes. The most material restructuring provision included
in the ending balance of 2023 is EUR 35 million related to closing dow n the De Hoop
containerboard site in the Netherlands. Other restructuring provisions relate mainly to
permanently closing down Sunila pulp production in Finland and restructuring programmes to
reduce the number of office employees in Group functions and the Packaging Materials division.
Material payments in 2022 in restructuring and other provisions are mainly related to closing
down pulp and paper production at the Kvarnsveden site in Sweden and the Veitsiluoto site in
Finland.
The most material environmental provision is based on an agreement between Stora Enso
and the City of Falun that obligates the Group to purify runoff from the Kopparberg mine before
releasing the water into the environment. The provision at year end amounted to EUR 27 (EUR
31) million. The most material case in other provisions is related to an obligation in some Nordic
countries to take care of reforestation within a specified time after final harvesting.
62
5 Capital structure and financing
5.1 Financial risk management
Risk management principles and process
Stora Enso is exposed to several financial market risks that the Group is managing under the
policies approved by the Board of Directors. The objective is to ensure cost-effective funding of
Group companies and manage financial risks effectively. The Stora Enso Group Financial Risk
Policy governs all financial transactions in Stora Enso. This policy and any future amendments
take effect once they are approved by the Board of Directors and all policies covering the use of
financial instruments must comply with it. The Group’s joint operations companies operate under
their own financial risk policies, which may not be fully similar to the Group’s policies.
The major financial market risks are detailed below with the main exposures for the Group being
interest rate risk, currency risk, liquidity risk, refinancing risk, and commodity price risk,
especially for fiber, pulp, and energy.
Interest rate risk
The Group is exposed to an interest rate risk that is the risk of fluctuating interest rates affecting
the interest expense of the Group and value of its assets and liabilities. Stora Enso is exposed to
the interest rate risk through interest-bearing assets and liabilities, such as loans, financial
instruments and lease liabilities, but also through commercial agreements and operative assets
and liabilities such as biological assets. The Group’s aim is to keep interest costs stable. The
Group’s aggregate duration should not exceed the average loan maturity, but should aim
towards a long duration. A duration above the average loan maturity is approved by the Board of
Directors.
The Group may use interest-rate swaps and cross-currency swaps to manage the interest-
rate risk by synthetically converting floating-rate loans into fixed-rate loans through the use of
derivatives. The Group's floating and fixed rate interest-rate position as per the year-end is
presented in the following table. The table includes the respective assets and liabilities classified
as held for sale.
Floating and fixed interest-rate position

| As at 31 December 2023 | As at 31 December 2022
EUR million | Floating rate | Fixed rate | Floating rate | Fixed rate
Non-current interest-bearing receivables 1 | 11 | 51 | 11 | 80
Current interest-bearing receivables 1 | 1 | 14 | 1 | —
Cash and cash equivalents | 2,464 |  | 1,917 |
Interest-bearing liabilities 2 | -1,422 | -4,293 | -1,074 | -2,818
Interest-bearing assets and liabilities excluding interest rate derivatives | 1,053 | -4,229 | 855 | -2,738
Interest-rate and cross-currency swaps | 488 | -488 | 650 | -650
Interest-bearing assets and liabilities, net of interest rate derivatives | 1,541 | -4,717 | 1,506 | -3,388
1 Excluding interest receivable, listed securities, and derivative assets 2 Non-current interest-bearing liabilities, current portion of non-current debt, short-term interest bearing liabilities and bank overdrafts excluding derivative liabilities and interest payable

The average interest duration for the Group's net interest-bearing liabilities, including all interest
rate derivatives but excluding cash and cash equivalents, is 2.7 (3.3) years.
As of 31 December 2023, one percentage point increase in interest rates would increase
annual net interest expenses by approximately EUR 10 (EUR 4) million and a similar decrease
in interest rates would decrease net interest expenses by EUR 10 (EUR 4) million. This assumes
that the duration and the funding structure of the Group remain constant throughout the year.
This simulation calculates the interest effect of a 100 basis point parallel shift in interest rates on
all floating rate instruments excluding cash equivalents from their next reset date to the end of
the year. In addition, all short-term loans maturing during the year are assumed to be rolled over
on maturity to year end using the new higher or lower interest rate.
A one percentage point parallel change up or down in interest rates would also result in fair
valuation gains or losses of EUR 6 (EUR 10) million before taxes in the cash flow hedge reserve
in OCI regarding interest rate swaps under cash flow hedge accounting. Note 5.4 Derivatives
summarises the nominal and fair values of the outstanding interest rate derivative contracts.
Foreign exchange risk - transaction risk
The Group operates globally and is exposed to a foreign-currency transaction risk arising from
exchange rate fluctuations. Foreign exchange transaction risk exposure comprises both the
geographical location of Stora Enso production facilities around the world, sourcing of raw
materials and sales of end products in foreign currencies, mainly denominated in US dollars,
British pounds and Swedish crowns. Stora Enso Group companies with functional currency other
than euro are also exposed to a foreign-currency transaction risk arising from EUR denominated
net cash flows. These EUR exposures mainly arise from Stora Enso subsidiaries located in
Sweden, Czech Republic and Poland.
The currency transaction risk is the impact of exchange rate fluctuations on the Group's
Income statement, which is the effect of currency rates on expected future cash flows and
subsequent trade receivables or payables. The Group's standard policy to mitigate the risk is to
hedge 15–60% of the highly probable forecast cash flows in major currencies for the next 12
months by using derivative financial instruments, such as foreign exchange forwards and foreign
exchange options. The Group may also hedge periods between 12 months and 36 months, or
change the above mentioned hedging ratio for the next 12 months upon the discretion of the
Group's management.
For operative receivables and payables in foreign currencies, the objective is to hedge 50–
100% of the outstanding net receivable balance in major currency pairs.
The table below presents the estimated net operative foreign currency transaction risk
exposures for the main currencies for the next 12 months and the related foreign-currency
hedges in place as at 31 December, retranslated using year-end exchange rates. The net
operative receivables and payable exposures, representing the balances as at 31 December,
include foreign currency exposures generated by external and intercompany transactions in line
with the requirements of IFRS 7. A positive amount of exposure in the table below represents an
estimated future inflow or receivable of a foreign currency amount.
63
Operative foreign currency transaction risk exposure

| As at 31 December 2023 | As at 31 December 2022
EUR million | EUR | SEK | USD | GBP | AUD | UYU | EUR | SEK | USD | GBP | AUD | UYU
Estimated annual net cash flow exposure in hedged foreign-currency flows 1 | 674 | -278 | 1,446 | 126 | 63 | -48 | 960 | -238 | 1,983 | 240 | 83 | -48
Cash flow hedges for the next 12 months | -394 | 188 | -632 | -34 | -15 | 27 | -525 | 119 | -843 | -59 | -26 | 26
Estimated annual net cash flow exposure, net of hedges | 280 | -90 | 814 | 93 | 47 | -21 | 435 | -119 | 1,139 | 181 | 57 | -22
Hedging percentage as at 31 December for next 12 months | 58% | 68% | 44% | 27% | 25% | 57% | 55% | 50% | 43% | 24% | 31% | 54%
Weighted-average hedged rate against EUR 2 |  | 11.57 | 1.10 | 0.87 | 1.66 | 45.07 |  | 10.63 | 1.09 | 0.87 | 1.52 | 45.20
Operative receivables and payables net exposure | -38 | -23 | 181 | 18 | 18 | -5 | -22 | 8 | 284 | 30 | 49 | -5
Net receivable currency hedges | -7 | 7 | -119 | -15 | -20 | — | -18 | -3 | -186 | -16 | -51 | —
Net operative receivables exposure, net of hedges | -45 | -15 | 62 | 3 | -2 | -5 | -39 | 5 | 98 | 14 | -2 | -5
Estimated annual net transaction risk exposure after hedges | 235 | -105 | 876 | 96 | 46 | -26 | 396 | -113 | 1,238 | 195 | 55 | -27
1 Cash flows are forecasted highly probable net operating foreign-currency cash flows in hedged currencies. The exposure presented in the EUR column relates to operative transaction risk exposure from EUR denominated cash flows in Group companies located in Sweden, Czech Republic and Poland with functional currency other than EUR. 2 The weighted-average exchange rate against EUR is calculated based on bought leg of option collar structure and forward contracts' forward rate and therefore represents the weighted-average hedged rate based on the least favourable hedged rate from the Group's point-of-view.

The following table includes the estimated effect on the annual operating result of a weakening
of an exposure currency against the functional currencies of exposed subsidiaries. The
sensitivities have been calculated based on a 5% movement in EUR, SEK, USD, GBP and AUD
while 10% movement in UYU. These changes are estimated as reasonably possible changes in
exchange rates, measured against year-end closing rates. A corresponding strengthening of the
exposure currency would have an approximately equal opposite impact. A negative amount in
the table reflects a potential net loss in the income statement or equity and, conversely, a
positive amount reflects a potential net gain. In practice, the actual foreign currency results may
differ from the sensitivity analysis presented below, since the income statements of subsidiaries
with functional currencies other than the euro are translated into the Group reporting currency
using the average exchange rates for the year, whereas the statements of the financial position
of such subsidiaries, including currency hedges, trade receivables and payable, are translated
using the exchange rates at the reporting date. The translation risk exposures are discussed
more in detail under the Translation risk chapter below.
The calculation includes currency hedges and assumes that there are no changes in other
underlying currencies. The currency effects are based on estimated operative foreign currency
flows for the next twelve months, hedging levels at the year end, and the assumption that the
currency cash flow hedging levels and all other variables will remain constant during the next
twelve months. Hedging instruments include foreign exchange forward contracts and foreign
exchange options. Indirect currency effects with an impact on prices and product flows, such as
a product becoming cheaper to produce in a different geographical location, have not been
considered in this calculation.
Sensitivity analysis of operative foreign currency transaction risk exposure

| As at 31 December 2023 | As at 31 December 2022
EUR million | EUR | SEK | USD | GBP | AUD | UYU | EUR | SEK | USD | GBP | AUD | UYU
Exposure currency change by 1 | -5% | -5% | -5% | -5% | -5% | -10% | -5% | -5% | -5% | -5% | -5% | -10%
Effect on estimated annual net cash flows in hedged flows | -34 | 14 | -72 | -6 | -3 | 5 | -48 | 12 | -99 | -12 | -4 | 5
Effect on cash flow hedging OCI reserve before taxes as at year end 2 | 20 | -9 | 32 | 2 | 1 | -3 | 26 | -6 | 42 | 3 | 1 | -3
Effect on net operative receivables and payables after hedges 3 | 2 | 1 | -3 | — | — | 1 | 2 | — | -5 | -1 | — | —
Estimated annual EBIT impact 4 | -12 | 5 | -44 | -5 | -2 | 3 | -20 | 6 | -62 | -10 | -3 | 3
1 The sensitivity analysis for EUR denominated annual net cash flows, operative net receivables and related hedges refer to the EUR denominated transaction risk arising from EUR denominated foreign-currency cash flows in Sweden, Czech Republic and Poland with functional currency other than EUR. 2 The effect on OCI cash flow hedging reserve before taxes at year end is related to the fair value change in derivative contracts qualifying as cash flow hedges of highly probable forecast transactions under IFRS 9. Amount effecting OCI will be recycled to operative result when the transaction realises. 3 Currency effect related to net operative receivables or payables and related hedges. 4 The estimated annual EBIT impact includes currency effects in respect of operative exposures in the Statement of Financial Position, forecast cash flows and the related hedges.

The following table presents the financial foreign currency exposure and the related hedges in
place as at 31 December for the main currencies. Net debt includes foreign-currency external
loan payables and receivables, foreign-currency internal loan payables and loan receivables and
cash equivalents. Loans designated as net investment loans under IAS 21 are excluded from the
table as they reduce the foreign-currency exposures on a Group level. Internal transaction
exposure includes foreign-currency payables and receivables outstanding within the Group at
reporting date. The currency derivatives mainly hedge financial exposures in the statement of
financial position. A negative amount of exposure in the table represents a net payable of a
foreign currency amount.
Additionally, the table includes the estimated effect on the income statement of a currency
weakening of an exposure currency against EUR. The sensitivities have been calculated based
on a 5% movement in SEK, USD, CNY, PLN, and CZK. These changes are estimated as
reasonably possible changes in exchange rates, measured against year-end closing rates. A
corresponding strengthening of the exposure currency would have an approximately equal
opposite impact. A negative amount in the table reflects a potential net loss in the Income
statement and, conversely, a positive amount reflects a net potential gain. In practice, the actual
foreign currency results may differ from the sensitivity analysis below as the exposure amounts
may change during the year.
64
Financial foreign currency exposure and estimated currency effects in income statement

| As at 31 December 2023 | As at 31 December 2022
EUR million | SEK | USD | CNY | PLN | CZK | SEK | USD | CNY | PLN | CZK
Foreign-currency net debt 1 | 140 | -121 | 185 | -3 | 24 | -418 | -101 | 355 | -6 | -62
Currency hedges | -158 | -5 | — | -5 | -21 | -3 | -46 | -211 | -7 | 62
Net exposure after hedges | -18 | -126 | 185 | -8 | 3 | -422 | -146 | 144 | -12 | —
Internal transaction exposure | 137 |  |  | 13 |  |  |  |  | 138 | 45
Currency hedges | — |  |  | — |  |  |  |  | -124 | -41
Net non-operative exposure | 137 | — | — | 13 | — | — | — | — | 14 | 3
Exposure currency change by | -5% | -5% | -5% | -5% | -5% | -5% | -5% | -5% | -5% | -5%
Effect in the Income Statement 2 | -6 | 6 | -9 | -1 | — | 21 | 7 | -7 | — | 6
1 The Group has designated certain internal loans to Chinese subsidiaries as net investment loans under IAS 21. The loans are denominated in EUR, USD, and CNY. The underlying foreign currency gain or loss will be posted as part of CTA in Equity. The nominal amount of net investment loans amounted to EUR 591 (EUR 398) million as per the year end and reduces the currency exposure for relevant currencies in the above table. 2 Gains and losses are recognised as part of Net financial items in the Income Statement |

Foreign exchange risk – translation risk
Translation risk results from fluctuations in exchange rates affecting the value of Stora Enso’s
consolidated net foreign currency denominated assets, liabilities, and income. Translation risk is
reduced by funding assets, whenever economically possible, in the same currency as the asset
itself. The Group may also enter into foreign exchange forwards, foreign exchange options or
foreign currency denominated loans to hedge its net investments in foreign entities with different
functional currencies than the Group.
The balance sheets of foreign subsidiaries, associated companies and foreign currency
denominated equity instruments in the scope of IFRS 9 are translated into euros using exchange
rates prevailing on the reporting date, thus exposing consolidated Group equity to fluctuations in
currency rates. The resulting translation differences, along with other movements such as the
translation rate difference in the income statement, are recorded directly in shareholders’ equity.
These cumulative differences materialise through the Income statement on the disposal, in
whole or in part, of the foreign entity.
The following table presents the translation risk exposure in the Group's Income statement
arising from the translation of subsidiaries' and joint operations' foreign-currency income
statements into the presentation currency of the Group in the consolidated financial statements.
Translation exposure in Income statement

| As at 31 December 2023 | As at 31 December 2022 |
EUR million | SEK | USD | BRL | CZK | CNY | SEK | USD | BRL | CZK | CNY
Translation exposure in Income Statement | -357 | -196 | -179 | -65 | 67 | -147 | -192 | -164 | -38 | 77
Exposure currency change by | -5% | -5% | -10% | -5% | -5% | -5% | -5% | -10% | -5% | -5%
Effect on EBIT from translation risk exposure | 18 | 10 | 18 | 3 | -3 | 7 | 10 | 16 | 2 | -4

The next table presents the translation exposure for geographical areas for which the Group has
applied net investment hedging techniques to reduce the foreign-currency translation exposure
in the consolidated equity. In practise, the Group also incurs material unhedged translation risk
exposures in other geographical areas such as Sweden and China. The exposures used in the
calculations are based on the foreign currency denominated equity and the hedging levels as at
31 December. Full details of actual CTA movements and hedging results are given in note 5.6
Cumulative translation adjustment and equity hedging. The sensitivity analysis includes the
effects of currency hedges of net investments in foreign entities and assumes that no changes
take place other than a single currency exchange rate movement on 31 December each year.
Hedged translation exposure in Equity

| As at 31 December
EUR million | 2023 | 2022
Translation exposure on equity in USD area 1 | 1,625 | 1,686
EUR/USD equity hedges 2 | -271 | -281
Translation exposure after hedges | 1,354 | 1,405
Sensitivity before hedges - EUR strengthening 5% | -81 | -84
Sensitivity after hedges - EUR strengthening 5% | -68 | -70
1 Includes the joint operation Montes del Plata in Uruguay, which has USD as its functional currency. 2 USD denominated bonds classified as hedges of net investments in foreign assets.

Liquidity and refinancing risk
Liquidity risk arises from the difficulty of obtaining finance for operations at a given point in time.
Stora Enso’s financial risk policy states that the average maturity of outstanding loans and
committed credit facilities covering short-term borrowings should be at least four years. The
policy further states that the Group must have cash equivalents and undrawn committed credit
facilities to cover all debt maturing within the next 12 months, including supply chain financing
and factoring. At 31 December 2023, undrawn committed credit facilities and undrawn loans
were at EUR 800 (EUR 1,100) million. The credit facilities are used as a backup for general
corporate purposes and are fully undrawn. Additionally, Stora Enso has access to various
additional long-term sources of funding up to EUR 1,100 (EUR 1,050) million. These mainly
relate to available funding sources from Finnish pension funds.
During 2023, Stora Enso issued or refinanced altogether EUR 2,006 million of long-term debt,
including both bonds and bilateral bank loans. Funding events from during 2023 are described in
more detail in note 5.3 Interest-bearing assets and liabilities
Refinancing risk, or the risk that maturing debt is not refinanced in the markets, is mitigated
by Stora Enso’s target of maintaining an even maturity profile of outstanding debt. The table
below shows maturity analysis for the Group's contractual financial liabilities classified under
principal headings based on the remaining period to contractual maturity at the reporting date.
Forward interest rates as at the year-end were used for estimating contractual finance charges
for the upcoming years. The table includes the respective assets and liabilities classified as held
for sale.
65
Contractual maturity repayments of financial liabilities, settlement net: 2023

EUR million | 2024 | 2025 | 2026 | 2027 | 2028 | 2029+ | Total
Bond loans | 136 | 440 | 590 | 591 | 548 | 1,310 | 3,615
Loans from credit institutions | 140 | 717 | 105 | 5 | 5 | 27 | 998
Lease liabilities | 71 | 57 | 48 | 43 | 39 | 263 | 520
Other non-current financial liabilities | 0 | 2 | 0 | 0 | 0 | 0 | 2
Non-current borrowings including current portion | 347 | 1,217 | 742 | 639 | 592 | 1,600 | 5,137
Estimated contractual finance charges | 193 | 152 | 113 | 82 | 69 | 194 | 802
Estimated contractual lease charges | 29 | 26 | 25 | 23 | 22 | 225 | 350
Contractual repayments on non- current borrowings | 569 | 1,395 | 880 | 744 | 683 | 2,018 | 6,289
Current borrowings, carrying amounts | 595 | 0 | 0 | 0 | 0 | 0 | 595
Gross-settled derivative liabilities - receipts | -2,154 | 0 | 0 | 0 | 0 | 0 | -2,154
Gross-settled derivative liabilities - payments | 2,132 | 0 | 0 | 0 | 0 | 0 | 2,132
Trade payables | 1,666 | 0 | 0 | 0 | 0 | 0 | 1,666
Estimated contractual finance charges | 9 | 0 | 0 | 0 | 0 | 0 | 9
Total contractual repayments at 31 December 2023 | 2,817 | 1,395 | 880 | 744 | 683 | 2,018 | 8,537

Contractual maturity repayments of financial liabilities, settlement net: 2022

EUR million | 2023 | 2024 | 2025 | 2026 | 2027 | 2028+ | Total
Bond loans | 300 | 270 | 404 | 90 | 325 | 1,081 | 2,470
Loans from credit institutions | 306 | 40 | 273 | 5 | 0 | 0 | 624
Lease liabilities | 63 | 49 | 44 | 33 | 30 | 159 | 377
Other non-current financial liabilities | 0 | 2 | 0 | 0 | 0 | 0 | 2
Non-current borrowings including current portion | 668 | 361 | 721 | 128 | 355 | 1,240 | 3,472
Estimated contractual finance charges | 108 | 90 | 74 | 43 | 40 | 190 | 545
Estimated contractual lease charges | 16 | 14 | 13 | 11 | 10 | 58 | 123
Contractual repayments on non- current borrowings | 792 | 465 | 807 | 182 | 405 | 1,489 | 4,140
Short-term borrowings, carrying amounts | 429 | 0 | 0 | 0 | 0 | 0 | 429
Gross-settled derivative liabilities - receipts | -2,405 | 0 | 0 | 0 | 0 | 0 | -2,405
Gross-settled derivative liabilities - payments | 2,401 | 0 | 0 | 0 | 0 | 0 | 2,401
Net-settled derivative liabilities | -4 | 0 | 0 | 0 | 0 | 0 | -5
Trade payables | 1,831 | 0 | 0 | 0 | 0 | 0 | 1,831
Bank overdrafts | 0 | 0 | 0 | 0 | 0 | 0 | 0
Estimated contractual finance charges | 6 | 0 | 0 | 0 | 0 | 0 | 6
Total contractual repayments at 31 December 2022 | 3,050 | 464 | 807 | 182 | 405 | 1,489 | 6,398

Financial transactions counterparty credit risk
Financial counterparty risk is the risk of fluctuations in the value of the Group’s assets as a result
of counterparties being unable to meet their obligations arising from financial contracts. The
exposure to a financial counterparty risk is measured as the maximum loss that Stora Enso can
suffer directly in the event of a single counterparty’s credit default. This risk is minimised by:
• entering into transactions only with leading financial institutions and with industrial companies
that have a good credit rating;
• only investing in liquid funds and deposits with financial institutions or companies that have a
minimum credit rating of A-3 or BBB-.
• at least the higher of 50% of cash equivalents, or EUR 150 million, of cash equivalents to be
held at counterparties with a minimum rating of A- or equivalent using credit ratings from main
rating agencies;
• investing at least EUR 75 million of the Group's cash and cash equivalents at counterparties
other than the counterparty at which most of Stora Enso's cash and cash equivalents are
held;
• requiring parent company guarantees when dealing with any subsidiary of a rated company.
The Group Financial Risk Policy defines the limits for accepted counterparty risk, based on the
tenor of financial contract and counterparty’s credit rating.
At the year end 2023, there were no significant concentrations of risk with respect to
counterparties of derivative contracts, with the highest counterparty mark-to-market exposure
being at EUR 13 (41) million and credit rating of A+ (A+) using Standard and Poor’s credit rating
symbols.
Customer credit risk
Customer credit risk is Stora Enso’s exposure to contracts arising from deterioration in the
financial health of its customers. The Group uses various measures to reduce customer credit
risks, including, but not limited to, letters of credit, prepayments and bank guarantees. The
Group has also obtained export guarantees, covering both political and commercial risks, which
are used in connection with individual customers outside the OECD area. Management
considers that no significant concentration of credit risk with any individual customer,
counterparty or geographical region exists for Stora Enso. The ageing information of trade
receivables and related loss allowances are given in note 4.7 Operative receivables.
Commodity price risk
Outstanding commodity hedges

| As at 31 December 2023 | As at 31 December 2022
| Underlying amount of commodity hedged | Average hedged commodity price | Nominal amount hedged in EUR million | Fair value EUR million | Underlying amount of commodity hedged | Average hedged commodity price | Nominal amount hedged in EUR million | Fair value EUR million
Electricity purchases |  |  |  |  |  |  |  |
- Nordic region | 245,712 MWh | EUR 55.6 | 14 | -1 | 175,200 MWh | EUR 29.1 | 5 | 18
Oil purchases | 205,058 barrels | USD 75.9 | 14 | -1 | 200,474 barrels | USD 73.5 | 14 | 0

The Group is exposed to commodity and energy price volatility that will have an impact on the
Group's profitability. Electricity, natural gas and oil hedge derivatives are part of energy price risk
management in the Group, whilst other commodity risks are measured and hedged if
economically possible. In addition to electricity hedge derivatives, the Group also manages
66
energy price risk by entering into long-term physical fixed price purchase agreements, and by
holding a 15.7% stake in Pohjolan Voima Oy (PVO), which is a privately owned Group of
companies in the energy sector in Finland. The fair value of the shares amounted to EUR 778
(EUR 1,423) million as per the year-end. The fair value of these shares is dependent on
electricity market prices and discussed in more detail in note 4.4 Equity instruments.
A 10% movement in energy and raw material prices would result in a EUR 5 (EUR 6) million
change in the fair value of commodity financial hedges described in the above table. The
majority of these fair value changes, after taxes, are recorded directly in Equity under Hedging
Reserves, until the contracts mature and the result is entered in the Income statement. These
estimates only represent the sensitivity of commodity financial instruments to market risk and not
the Group's full exposure to raw material and energy price risks as a whole, since the actual
underlying purchases are not financial instruments within the scope of the IFRS 7 standard. At
the end of 2023, the maturities of the energy and commodity contracts, including both financial
hedges and fixed-price physical purchase agreements, ranged between 2024 and 2025. In
2022, the maturities ranged between 2023 and 2024.
In an effort to mitigate other commodity price risk exposures in relation to wood fiber price
risk, the Group is a significant owner of forest assets in the Nordic region. In Sweden the Group
owns 1.4 million hectares of forest land. In addition, Stora Enso holds 41% share in Tornator Oyj,
which is a significant forest owner in Finland. The Group's share in Tornator is reported as an
associate company and discussed in more detail in note 4.3 Associates. The Group's forest
assets are discussed in more detail in note 4.2 Forest assets.
Equity price risk
The Group has certain investments in publicly traded securities. Currently these relate to
Packages Ltd shares in Pakistan. The market value of these equity investments was EUR 9
(EUR 8) million at the year end. Market value changes in these investments are recorded, after
taxes, directly under Shareholders’ Equity in the Equity instruments through OCI reserve. More
details on the publicly traded securities can be found from note 4.4 Equity instruments.
Capital risk management
Stora Enso’s debt structure is focused on capital markets and commercial banks. Group
objectives when managing capital are to safeguard the ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders, as well as to
maintain an optimal capital structure to maintain reasonable cost of capital. In order to maintain
or adjust the capital structure, the Group may, subject to shareholder approval as appropriate,
vary the dividends paid to shareholders, buy its own shares on financial markets, return capital
to shareholders, issue new shares or sell assets to reduce debt. The Group strives to pay stable
dividends linked to the long-term performance with the aim of distributing 50% of Earnings per
share (EPS) excluding fair valuations over the cycle.
The Group monitors its capital on the basis of a target net debt-to-equity ratio of 0.60 or less,
and aiming that the Net-debt-to-Operational EBITDA ratio remains below 2.0, indicating a solid
financial position and financial flexibility.
Capital structure

| As at 31 December
EUR million | 2023 | 2022
Interest-bearing liabilities 1 | 5,780 | 3,976
Interest-bearing assets 1 | 2,613 | 2,122
Net debt | 3,167 | 1,853
Equity attributable to owners of the parent | 10,985 | 12,532
Operational EBITDA 2 | 989 | 2,529
Net debt to equity ratio | 0.29 | 0.15
Net debt to operational EBITDA | 3.2 | 0.7
1 Interest-bearing liabilities and assets in the table include the respective amounts classified as held for sale. More detailed reconciliation of net debt is included in the "Alternative performance measures" chapter in the Report of the Board of Directors. 2 Operational EBITDA definition is included in the "Alternative performance measures" chapter in the Report of the Board of Directors.

Montes del Plata, a joint operation of Stora Enso, and the Group's subsidiary Stora Enso
(Guangxi) Packaging and Forestry Company Ltd have complied with financial covenants related
to debt-to-assets ratio during the reported periods. There are no other covenants in the Group's
financing contracts.
5.2 Fair values
Accounting principles
Financial assets
The Group classifies its financial assets into three categories, which are amortised cost, fair value through
other comprehensive income and fair value through profit and loss. The classification is made according to
the IFRS 9 standard and management determines the classification of investments at the time of initial
recognition.
With investments in debt instruments, the classification is made based on the business model and
contractual cash flow characteristics of debt instruments. Investments in debt instruments, for which the
business model objective is to hold the financial instruments to collect contractual cash flows and those cash
flows are solely payments of principal and interest, are classified as amortised cost and presented under
current or non-current assets in the consolidated statement of financial position. Investments in debt
instruments, for which the business model objective is to hold the financial instruments for both to collect
contractual cash flows and sell financial instruments and the cash flows are solely payments of principal and
interest, are classified as fair value through other comprehensive income and presented under current or
non-current assets in the consolidated statement of financial position.
The Group's investments into equity instruments, such as listed and unlisted securities, are classified as
fair value through profit and loss unless the Group has at inception decided to apply the irrevocable election
under IFRS 9 to classify the investments as fair value through other comprehensive income with only
dividend income from the investments being recognised in the income statement.
Investments that are not measured at amortised cost or at fair value through other comprehensive income
are classified as fair value through profit and loss and are therefore fair valued through the consolidated
income statement and presented under current or non-current assets in the consolidated statement of
financial position.
Financial liabilities
The Group's financial liabilities are classified into amortised cost or fair value through profit and loss
categories. Financial liabilities are measured at amortised cost unless the Group has decided to apply a fair
value option to designate a financial liability to be measured at fair value through profit and loss.
67
Derivatives
Derivative financial assets and liabilities are measured at fair value and classified as fair value through profit
and loss or, if the Group has applied hedge accounting, at fair value through other comprehensive income
according to the IFRS 9 standard. Derivative financial instruments and hedge accounting are discussed in
more detail in note 5.4 Derivatives.
Fair value of financial instruments
The fair values of publicly traded derivatives and listed securities, are based on quoted market prices at the
reporting date; the fair values of interest rate swaps are calculated as the present value of the estimated
future cash flows, and the fair values of foreign exchange forward contracts are determined using forward
exchange rates at the reporting date. The valuation principles for derivative financial instruments have been
described in more detail in note 5.4 Derivatives.
In assessing the fair values of non-traded derivatives and other financial instruments, the Group uses a
variety of methods and makes assumptions based on the market conditions at each reporting date. Quoted
market prices or dealer quotes for identical or similar instruments are used for non-current debt. Other
techniques, such as option pricing models and estimated discounted value of future cash flows, are used to
determine fair values for the remaining financial instruments. The face values, less any estimated credit
adjustments, for financial assets and liabilities with a maturity of less than one year are assumed to
approximate their fair values. The fair values of financial liabilities for disclosure purposes are estimated by
discounting the future contractual cash flows at the current market interest rates available to the Group for
similar financial instruments.
Purchases and sales of financial instruments are recognised based on trade date accounting, which is the
date on which the Group commits to purchasing or selling the financial instrument. Financial instruments are
derecognised when the rights to receive or the cash flows from the financial instruments have expired or have
been transferred and the Group has substantially transferred all risks, rewards and obligations of the
ownership of the financial asset or liability.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
• Level 2: other techniques, for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly;
• Level 3: techniques which use inputs which have a significant effect on the recorded fair values that are
not based on observable market data.
The Group evaluates the categorisation of its fair value measurements within the fair value hierarchy on a
regular basis at the end of the reporting period. There were no transfers recognised in the fair value hierarchy
between Levels 1 and 2 and no transfers into or out of Level 3 fair value measurements during 2023 and
2022. See note 4.4 Equity instruments for more information on Level 3 fair value measurement of listed and
unlisted securities.
68
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 2023

|  |  |  |  |  | Fair value hierarchy |
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note
Financial assets |  |  |  |  |  |  |  |  |
Listed securities | — | 9 | — | 9 | 9 | 9 | — | — | 4.4
Unlisted securities | — | 794 | 15 | 810 | 810 | — | — | 810 | 4.4
Non-current interest-bearing receivables | 62 | 14 | — | 76 | 76 | — | 15 | — | 5.3
Derivative assets | — | 14 | — | 15 | 15 | — | 15 | — |
Loan receivables | 62 | — | — | 62 | 62 | — | — | — |
Trade and other operative receivables | 835 | 30 | — | 865 | 865 | — | 30 | — | 4.7
Current interest-bearing receivables | 21 | 39 | 4 | 64 | 64 | — | 43 | — | 5.3
Derivative assets | — | 39 | 4 | 43 | 43 | — | 43 | — |
Other short-term receivables | 21 | — | — | 21 | 21 | — | — | — |
Cash and cash equivalents | 2,464 | — | — | 2,464 | 2,464 | — | — | — |
Total | 3,382 | 887 | 19 | 4,288 | 4,288 | 9 | 87 | 810 |

|  |  |  |  |  | Fair value hierarchy |
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note
Financial liabilities |  |  |  |  |  |  |  |  |
Non-current interest-bearing liabilities | 4,445 | 1 | — | 4,446 | 5,071 | — | 1 | — | 5.3
Derivative liabilities | — | 1 | — | 1 | 1 | — | 1 | — |
Non-current debt | 4,445 | — | — | 4,445 | 5,069 | — | — | — |
Current portion of non-current debt | 286 | — | — | 286 | 286 | — | — | — | 5.3
Current interest-bearing liabilities | 469 | 4 | 2 | 476 | 476 | — | 6 | — | 5.3
Derivative liabilities | — | 4 | 2 | 6 | 6 | — | 6 | — |
Current debt | 469 | — | — | 469 | 469 | — | — | — |
Trade and other operative payables | 1,806 | — | — | 1,806 | 1,806 | — | — | — | 4.8
Bank overdrafts | — | — | — | — | — | — | — | — |
Total | 7,006 | 6 | 2 | 7,014 | 7,639 | — | 8 | — |
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion.

69
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 2022

|  |  |  |  |  | Fair value hierarchy |
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note
Financial assets |  |  |  |  |  |  |  |  |
Listed securities | — | 8 | — | 8 | 8 | 8 | — | — | 4.4
Unlisted securities | — | 1,423 | 14 | 1,437 | 1,437 | — | — | 1,437 | 4.4
Non-current interest-bearing receivables | 92 | 28 | — | 120 | 120 | — | 28 | — | 5.3
Derivative assets | — | 28 | — | 28 | 28 | — | 28 | — |
Loan receivables | 92 | — | — | 92 | 92 | — | — | — |
Trade and other operative receivables | 1,138 | 66 | — | 1,204 | 1,204 | — | 66 | — | 4.7
Current interest-bearing receivables | 10 | 50 | 16 | 77 | 77 | — | 67 | — | 5.3
Derivative assets | — | 50 | 16 | 67 | 67 | — | 67 | — |
Other short-term receivables | 10 | — | — | 10 | 10 | — | — | — |
Cash and cash equivalents | 1,917 | — | — | 1,917 | 1,917 | — | — | — |
Total | 3,157 | 1,576 | 30 | 4,763 | 4,763 | 8 | 161 | 1,437 |

|  |  |  |  |  | Fair value hierarchy |
EUR million | Amortised cost | Fair value through OCI | Fair value through income statement | Total carrying amount | Fair value | Level 1 | Level 2 | Level 3 | Note
Financial liabilities |  |  |  |  |  |  |  |  |
Non-current interest-bearing liabilities | 2,792 | — | — | 2,792 | 2,749 | — | — | — | 5.3
Derivative liabilities | — | — | — | 0 | 0 | — | — | — |
Non-current debt | 2,792 | — | — | 2,792 | 2,748 | — | — | — |
Current portion of non-current debt | 667 | — | — | 667 | 667 | — | — | — | 5.3
Current interest-bearing liabilities | 462 | 30 | 20 | 513 | 513 | — | 50 | — | 5.3
Derivative liabilities | — | 30 | 20 | 50 | 50 | — | 50 | — |
Current debt | 462 | — | — | 462 | 462 | — | — | — |
Trade and other operative payables | 2,076 | — | — | 2,076 | 2,076 | — | — | — | 4.8
Bank overdrafts | — | — | — | 0 | 0 | — | — | — |
Total | 5,998 | 30 | 20 | 6,048 | 6,005 | — | 51 | — |
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion.

In the previous tables, the fair value is estimated to be equal to the carrying amount for current
financial assets and financial liabilities, such as trade receivables and payables due to their short
time to maturity and limited credit risk. The fair value of non-current loan receivables, considered
as a level 2 fair value measurement, is based on the discounted cash flow analysis. The fair
value of non-derivative interest-bearing liabilities, considered as a level 2 fair value
measurement, is estimated based on a discounted cash flow analysis in which the yield curves
observable at commonly quoted intervals are used as a discount factor in the model.
70
Reconciliation of level 3 fair value measurement of financial assets and liabilities

EUR million | 2023 | 2022
Financial assets |  |
Opening balance at 1 January | 1,437 | 905
Reclassifications | 0 | -1
Gains/losses recognised in other comprehensive income | -646 | 523
Additions | 18 | 10
Closing balance at 31 December | 810 | 1,437

The Group did not have level 3 financial liabilities as at 31 December 2023.
5.3 Interest-bearing assets and liabilities
Accounting principles
Interest-bearing assets - loan receivables
Loan receivables are debt instruments with fixed or determinable payments that are not quoted on an active
market. They are recorded initially at fair value and subsequently measured at an amortised cost. Loss
allowance for expected credit losses is calculated based on the general approach under IFRS 9, where loss
allowance is recognised based on 12-month expected credit losses if there has not been a significant
increase in credit risk since the initial recognition. A significant increase in the credit risk will be evaluated
based on a comparison of the risk of a default occurring on the financial instrument as at the reporting date
with the risk of default occurring on the financial instrument as at the date of initial recognition. The Group
may use, for example, rates of credit default swaps (CDS) observable on financial markets to produce the
risk assessment.
Interest income on loan receivables is included in financial income and expense. Loan receivables with a
maturity less than 12 months are included in current assets under interest-bearing receivables, and those
with maturities greater than 12 months, in non-current interest-bearing receivables.
Interest-bearing liabilities
Interest-bearing liabilities are recognised initially at fair value, net of transaction costs incurred. In subsequent
periods, interest-bearing liabilities are measured at amortised cost using the effective interest method. Any
difference between the proceeds net of transaction costs and redemption value is recognised in the
consolidated income statement over the maturity period of the borrowings. Interest expenses are accrued for
and recorded in the consolidated Income statement for each period.
Interest-bearing liabilities with an original maturity greater than 12 months are classified as non-current
interest-bearing liabilities in the consolidated statement of financial position, though repayments falling due
within 12 months are presented in current liabilities under the current portion of non-current debt. Short-term
commercial paper, bank and other interest-bearing liabilities, for which the original maturity is less than 12
months, are presented in current liabilities under interest-bearing liabilities.
Lease liabilities
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. Lease liabilities are initially capitalised at the commencement of the lease and
measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the Group’s incremental borrowing rate. The lease term applied corresponds to the non-
cancellable period except in cases where the Group is reasonably certain to exercise renewal option or
prolong the contract. The Group allocates the consideration in the contract to each lease component and
separates non-lease components if these are identifiable. Lease terms are negotiated on an individual basis
and contain a wide range of different terms and conditions.
The lease liabilities are subsequently measured at amortised cost using the effective interest method.
Lease payment is allocated between the capital liability and finance charges to achieve a constant interest
rate on the outstanding liability balance. Lease liabilities are remeasured mainly when there is a change in
future lease payments arising from a change in an index or rate, or if there is a change in the Group’s
assessment whether it will exercise an extension option. When lease liability is remeasured, a corresponding
adjustment is generally made to the carrying amount of the right-of-use asset.
The Group has elected not to recognise lease liabilities for short-term leases that have a lease term of 12
months or less and leases of low value assets. Leases of low value assets mainly include IT and office
equipment, certain vehicles and machinery and other low value items. The Group recognises the lease
payments associated with these leases as an expense on a straight-line basis over the lease term.
Managing Interest Rate Benchmark Reform and associated risks
The Group monitors the process of the transition from IBORs to new benchmark rates by
reviewing the total amounts of contracts that have yet to transition to an alternative benchmark
rate. The impact of any ongoing changes is expected to be limited. The Group's financial
instruments are mainly indexed to Euribor and Stibor reference rates which are expected to
continue to exist for now.
At the end of 2022 the Group had EUR 211 million of outstanding interest-bearing liabilities
that were indexed to US dollar LIBOR of which publication ceased after June 2023. During the
year, these interest-bearing liabilities have been transitioned to follow new benchmark rates.
There has been no significant impact on the Group from the change.
Interest-bearing assets

EUR million | 2023 | 2022
Listed securities | 9 | 8
Long-term derivative assets | 15 | 28
Long-term deposits | 48 | 48
Long-term loans to associated companies | 2 | 2
Other long-term loan receivables | 12 | 41
Total non-current interest-bearing assets | 85 | 128
Short-term derivative assets | 42 | 66
Other short-term loan receivables | 22 | 11
Cash and cash equivalents | 2,464 | 1,917
Total current interest-bearing assets | 2,528 | 1,994
Total interest-bearing assets | 2,613 | 2,122

The annual average interest income rate for deposits and loan receivables during the year was
approximately 3.0% (1.0%). Current interest-bearing receivables included EUR 8 (EUR 10)
million accrued interest at 31 December 2023. The Group has evaluated that there has not
been a significant increase in credit risk related to interest-bearing deposits and investments
after the initial recognition. Accordingly, the loss allowance is recognised based on 12-month
expected credit losses.
Of the other long-term loan receivables EUR 10 (41) million and of the other short-term loan
receivables EUR 14 (0) million represent receivables originating from the sale of the Russia
operations in 2022. These receivables were recognised at inception at their fair value (EUR 58
million) using a discount rate of 27.1% and are carried in the statement of financial position at
amortised cost. In 2023, an impairment of EUR 11 million was recognised on the receivables.
The fair valuation of these receivables and evaluation of their credit risk and collectability
involves a significant degree of judgement.
71
Interest-bearing liabilities

EUR million | 2023 | 2022
Bond loans | 3,601 | 2,460
Loans from credit institutions | 794 | 623
Lease liabilities | 334 | 375
Long-term derivative financial liabilities | 1 | 0
Other non-current liabilities | 2 | 2
Non-current interest-bearing liabilities including current portion | 4,733 | 3,459
Short-term borrowings | 418 | 429
Interest payable | 52 | 35
Short-term derivative financial liabilities | 6 | 49
Total Interest-bearing Liabilities | 5,209 | 3,972
EUR million | 2023 | 2022
Carrying value at 1 January | 3,972 | 3,938
Additions in long-term debt, companies acquired | 131 | 0
Proceeds of new long-term debt | 2,006 | 366
Repayment of long-term debt | -619 | -351
Additions in lease liabilities, companies acquired | 99 | 0
Additions in lease liabilities | 109 | 45
Repayment of lease liabilities and interest | -87 | -73
Change in short-term borrowings | 177 | 75
Change in interest payable | 40 | 19
Change in derivative financial liabilities | -41 | -19
Disposals and classification as held for sale | -575 | -5
Other | 26 | 8
Translation differences | -29 | -32
Total Interest-bearing Liabilities | 5,209 | 3,972

Events during 2023 and 2022
Stora Enso published a new framework for green and sustainability-linked financing in May
2023. The combined Green and Sustainability-Linked Financing Framework allows Stora Enso
to issue both green and sustainability-linked financing instruments, as well as a combination of
the two.
In May 2023, Stora Enso issued two EUR 500 million green bonds with 3- and 6.25-year
maturities. In November 2023, Stora Enso issued new SEK green bonds with nominal value of
SEK 6,100 million, equal to EUR proceeds of 524 million at the transaction date FX rate. The
SEK green bonds feature several tranches, with the maturities ranging from 2025 to 2028. Later
in December 2023 the Company also completed a private placement of SEK 425 million with
maturity in 2033. This was equal to EUR proceeds of 38 million at the transaction date FX rate.
In addition, during the year, the Company re-financed altogether EUR 550 million of its
bilateral loans and committed credit facility, and also drew bilatera l loans of EUR 200 million in
total that were arranged but undrawn at the end of 2022. The existing loans were extended by
one to two years and new terms also include extension options. The Company also arranged a
new EUR 100 million bilateral loan with a 1.5-year maturity and a 1-year extension option during
the second quarter. In the fourth quarter a one-year extension was signed to the revolving credit
facility of EUR 700 million to extend its maturity to 2028.
During 2023, Stora Enso’s total repayments of SEK and EUR bond notes amounted to a
nominal of EUR 427 million. This amount includes partial repayment of SEK bond notes with
original maturity in February 2024, which resulted in a EUR 1 million modification net gain being
recognised in the Income Statement under net financial items.
During 2022, altogether EUR 550 million of bilateral bank loans were arranged. Maturities of
these loans varied from 18 months to 3 years with extension options. Repayments of credit
institution loans based on the original maturity schedule amounted to a nominal of EUR 289
million in 2022. There were no repayments of bond notes in 2022.
Interest-bearing liabilities - maturities, interest rates and currency breakdown
Stora Enso's borrowings maturities range from 2024 to the longest borrowing maturing in 2039.
The Company's borrowings have either fixed or floating interest rates ranging from 0.6% (0.5%)
to 7.3% (7.3%). Stora Enso's average interest rate on borrowings for the full year amounted to
3.7% (3.2%) with a run-rate of 4.0% as per the year end. Part of Stora Enso's borrowings have
been fixed through floating-to-fixed interest rate swaps. The majority of Group loans are
denominated in euros, US dollars, Swedish crowns or Chinese renminbis. Detailed maturity
analysis of the Group's borrowings are set out in note 5.1 Financial risk management.
Net debt
In 2023 net interest-bearing liabilities, including amounts classified as held for sale, increased by
EUR 1,314 (decreased by EUR 456) million to EUR 3,167 (EUR 1,854) million. Net interest-
bearing liabilities are equal to total interest-bearing liabilities less total interest-bearing assets
such as cash equivalents and deposits. Cash and cash equivalents net of overdrafts increased
by EUR 547 (increased by EUR 437) million to EUR 2,464 (EUR 1,917) million as at 31
December 2023. In 2023, the total cash outflow for leases was EUR 87 (EUR 73) million
including interest component of EUR 23 (EUR 17) million.
The ratio of net debt to the last 12 months' operational EBITDA was 3.2 (0.7). The net debt/
equity ratio was 0.29 (0.15) as per the year-end.
72
Bond loans

Issue/ Maturity Dates | Description of Bond | Interest Rate % | Currency of Bond | Nominal Value Issued | Outstanding As at 31 December | Carrying Value As at 31 December
|  |  |  | 2023 | 2022 | 2023 | 2022
All Liabilities are Held by the Parent Company | Currency million | EUR million
Fixed Rate |  |  |  |  |  |  |  |
2006-2036 | Global 7.250% Notes 2036 | 7.25 | USD | 300 | 300 | 300 | 269 | 278
2016-2023 | Euro Medium Term Note | 2.125 | EUR | 300 | 0 | 300 | 0 | 300
2017-2027 | Euro Medium Term Note | 2.50 | EUR | 300 | 300 | 300 | 299 | 299
2018-2028 | Euro Medium Term Note | 2.50 | EUR | 300 | 300 | 300 | 299 | 299
2019-2024 | Euro Medium Term Note (Green Bond) | 1.875 | SEK | 1,750 | 484 | 1,750 | 44 | 157
2020-2025 | Euro Medium Term Note (Green Bond) | 2.375 | SEK | 1,550 | 1,550 | 1,550 | 140 | 140
2020-2030 | Euro Medium Term Note (Green Bond) | 0.625 | EUR | 500 | 500 | 500 | 496 | 495
2023-2027 | Euro Medium Term Note (Green Bond) | 4.75 | SEK | 400 | 400 | 0 | 36 | 0
2023-2026 | Euro Medium Term Note (Green Bond) | 4.00 | EUR | 500 | 500 | 0 | 499 | 0
2023-2029 | Euro Medium Term Note (Green Bond) | 4.25 | EUR | 500 | 500 | 0 | 497 | 0
2023-2027 | Euro Medium Term Note (Green Bond) | 4.75 | SEK | 600 | 600 | 0 | 54 | 0
2023-2028 | Euro Medium Term Note (Green Bond) | 5.00 | SEK | 2,250 | 2,250 | 0 | 202 | 0
Total Fixed Rate Bond Loans |  |  |  | 2,834 | 1,968
Floating Rate |  |  |  |  |  |  |
2015-2025 | Euro Medium Term Note | Euribor+2.25 | EUR | 125 | 125 | 125 | 125 | 125
2015-2027 | Euro Medium Term Note | Euribor+2.35 | EUR | 25 | 25 | 25 | 25 | 25
2019-2024 | Euro Medium Term Note (Green Bond) | Stibor+1.45 | SEK | 1,250 | 1,030 | 1,250 | 93 | 112
2019-2026 | Euro Medium Term Note (Green Bond) | Stibor+1.60 | SEK | 1,000 | 1,000 | 1,000 | 90 | 90
2020-2025 | Euro Medium Term Note (Green Bond) | Stibor+2.20 | SEK | 1,550 | 1,550 | 1,550 | 140 | 140
2023-2027 | Euro Medium Term Note (Green Bond) | Stibor+1.25 | SEK | 2,350 | 2,350 | 0 | 211 | 0
2023-2028 | Euro Medium Term Note (Green Bond) | Stibor+1.60 | SEK | 500 | 500 | 0 | 45 | 0
2023-2033 | Euro Medium Term Note (Green Bond) | Stibor+2.20 | SEK | 425 | 425 | 0 | 38 | 0
Total Floating Rate Bond Loans |  |  |  |  |  | 766 | 492
Total Bond Loans |  |  |  |  |  |  | 3,601 | 2,460

73
5.4 Derivatives
Accounting principles
Derivative financial instruments and hedge accounting
Derivative financial instruments are initially recognised in the consolidated statement of financial position at
fair value and subsequently measured at their fair value at each reporting date according to valuation
methods described in this note. Derivative contracts with maturity greater than 12 months are classified as
non-current interest-bearing receivables and liabilities, and contracts maturing within 12 months are
presented under current interest-bearing receivables and liabilities.
When derivative contracts are entered into, the Group designates them as either hedges of highly
probable forecast transactions or firm commitments (cash flow hedges), hedges of the exposure to changes
in the fair value of recognised assets or liabilities (fair value hedges), hedges of net investments in foreign
entities, or derivative financial instruments not meeting the hedge accounting criteria in accordance with IFRS
9. The method of recognising the resulting gains or losses on derivative instruments is dependent on the
nature of the item being hedged.
At the inception of a hedge, the Group documents the relationship between the hedging instrument and
the hedged item, as well as its risk management objective and strategy for undertaking various hedging
transactions. This process includes linking all financial instruments designated under hedge accounting to
specific assets and liabilities or to specific firm commitments or highly probable forecast transactions in order
to verify and document the hedge relationship between the hedged item and the hedging instrument as
required by IFRS 9. The Group also documents its qualitative prospective assessment at the hedge inception
of whether the derivatives used in a hedge relationship are highly effective in offsetting changes in fair value
or cash flows of hedged items. Hedge effectiveness will be assessed in accordance with IFRS 9
requirements.
The hedge ratio used for hedging relationships is usually 1:1. For currency and commodity hedging
purposes, the Group uses a hedge designation where the critical terms of the hedging instrument and the
hedged item will coincide in terms of the notional amount and timing. In respect of interest rate hedging, the
interest rate basis between swap contracts and underlying debt will coincide. Since the critical terms of the
hedges and underlying risks match, the hedging instruments are considered to offset any changes related to
the anticipated transactions.
Potential sources of ineffectiveness that may be expected to occur in relation to currency and commodity
hedges are mainly related to the forecasted transaction not occurring in the amount or at the time expected.
For interest rate hedges, cross-currency basis spread or initial fair value of the hedging instrument at the date
of hedge designation may result in ineffectiveness being recognised in the income statement. Potential
sources of ineffectiveness for all the aforementioned hedges also include possible effects of credit risk
dominating fair value changes arising from the hedging instrument and the hedged item designated under the
hedging relationship.
Cash flow hedges
Derivatives used in currency cash flow hedges are mainly forward contracts and options, with swaps mainly
used for commodity and interest rate hedging purposes. During 2023 and 2022, the Group did not enter into
new interest rate swap contracts.
Changes in the fair value of derivatives designated and qualifying as cash flow hedges, and which are
effective, are recognised in a separate equity category of OCI cash flow hedges reserve, the movements of
which are disclosed in the consolidated statement of comprehensive income. For foreign exchange forwards,
both the spot element and forward points have been included to the hedge designation. In case of foreign
exchange options, the time value of an option is excluded from the hedge designation and only the intrinsic
value component of an option is designated as the hedging instrument. The changes in option time value are
recognised in a cost of hedging reserve within OCI. The cumulative gain or loss of a derivative deferred in
equity is transferred to the consolidated income statement and classified as an income or expense in the
same period in which the hedged item affects the consolidated income statement. The unrealised gains and
losses related to cash flow hedges are expected to be recycled through the income statement within one to
four years with the longest hedging contract maturing in 2027 (2027). However, the majority of the contracts
are expected to mature in 2024.
Realised results of hedge accounted derivative instruments hedging foreign currency sales transactions or
purchases are booked as adjustments to sales or materials and services, depending on the nature of the
underlying hedged item. In respect of hedges of exposures to foreign currency risk of future transactions
resulting in the recognition of non-financial assets, the gains and losses deferred to the cash flow hedges
reserve within OCI are transferred from equity to be included in the initial acquisition cost of the non-financial
asset at the time of recognition. The Group may hedge foreign-currency risk of external or internal foreign-
currency purchases where the underlying amount purchased in a foreign-currency impacts the value of
inventory in a local currency. In such cases the gains and losses are initially booked as an adjustment to raw
material inventory and recycled further to finished goods inventory with being ultimately recognised in the
consolidated income statement at the time when the hedged items are sold to an external customer. In case
of non-current assets, the deferred amounts are ultimately recognised in the income statement through
depreciation over the lifetime of the non-financial assets.
When a hedging instrument expires or is sold, terminated or exercised or no longer meets the hedge
accounting criteria under IFRS 9, any cumulative gain or loss deferred in equity at that time remains in equity
and is accounted for as an adjustment to income or expense when the committed or forecast transaction is
ultimately recognised in the consolidated income statement. However, if the underlying forecasted transaction
is no longer expected to occur, the cumulative gain or loss reported in equity from the period when the hedge
was effective is immediately recognised in the consolidated income statement.
Fair value hedges
In case of fair value hedges, the Group uses either derivatives or borrowings as a hedging instrument to
manage the risk associated with the fair value of a hedged item. The gains and losses on hedging
instruments designated and qualifying as fair value hedges, and which are highly effective, are recorded in
the consolidated income statement, along with any changes in the fair value of the hedged assets or liabilities
attributable to the hedged risk. As at the end of 2023, the Group did not have fair value hedges.
Net investment hedges
For hedges of net investments in foreign entities, the Group uses either derivatives or foreign-currency
borrowings for this purpose. If the hedging instrument is a derivative, any gain or loss thereon relating to the
effective portion of the hedge is recognised in equity in CTA as disclosed in the consolidated statement of
comprehensive income; the gain or loss relating to the ineffective portion is immediately recognised in the
consolidated income statement. In addition, exchange gains and losses arising on the translation of a foreign-
currency borrowing that hedges net investment in a foreign operation are also recognised in CTA, with any
ineffective portion being immediately recognised in the consolidated income statement. The gains and losses
recognised in CTA are recycled from equity to the consolidated income statement at the time when the
underlying hedged net investment is disposed.
Non-hedge accounted derivatives
Certain derivative transactions, while providing effective economic hedges under Group risk management
policies, do not qualify for hedge accounting under the specific rules in IFRS 9 and therefore changes in the
fair value of such non-qualifying hedges are accounted for at fair value in the consolidated income statement.
For non-hedge accounted derivatives economically hedging foreign-currency risk of net of operative
receivables and payables, the fair value changes are recognised in operating result under other operating
income and expense. For other non-hedge accounted derivatives, the fair value changes are recognised in
the consolidated income statement under financial income and expense.
Valuation of derivatives
Derivative financial instruments are recorded in the statement of financial position at their fair values defined
as the amount at which the instrument could be exchanged in an orderly transaction between market
participants at the measurement date. The fair values of such financial items have been estimated on the
following basis:
74
• Foreign exchange forward contract fair values are calculated using forward exchange rates at the
reporting date.
• Foreign exchange option contract fair values are calculated using reporting date market rates together
with common option pricing models.
• Commodity contract fair values are computed with reference to quoted market prices on futures
exchanges or other reliable market sources.
• Interest rate swaps fair values are calculated using a discounted cash flow method.
• Cross-currency swaps fair values are calculated by using a discounted cash flow method with the
exchange of notional also included in the valuation model.
Total foreign exchange gains and losses in the income statement excluding hedges

EUR million | 2023 | 2022
Other operating income | -11 | 42
Other operating expense | -4 | -21
Borrowings, cash equivalents. lease liabilities and other | -10 | -10
Total | -25 | 11

Hedge gains and losses in operating result

EUR million | 2023 | 2022
Cash flow hedge accounted derivatives |  |
Currency hedges | -7 | -105
Commodity hedges | -2 | 43
Total | -8 | -62
As adjustments to sales | -7 | -103
As adjustments to materials and services | -2 | 41
Realised from OCI through income statement | -8 | -62
Currency hedges ineffectiveness | 1 | -2
Net gains/losses from cash flow hedges | -7 | -65
Non-hedge accounted derivatives |  |
Net receivable hedges | 5 | -12
Commodity contract hedges | 0 | 9
Net gains/losses on non-hedge accounted derivatives | 5 | -3
Net hedge gains/losses in operating result | -2 | -67

In 2023, certain forecasted future transactions were no longer expected to occur, and due to this
hedge accounting was ceased for those transactions. This resulted in a gain of EUR 1 (loss of 2)
million being booked in the Group's operating result and is being presented in the table above as
ineffectiveness from cash flow hedges.
Hedge gains and losses in financial items

EUR million | 2023 | 2022
Non-hedge accounted derivatives |  |
Currency derivatives | -12 | 8
Interest rate derivatives | 4 | -4
Net gains/losses on non-hedge accounted derivatives | -8 | 4
Net gains/losses in financial items | -8 | 4

75
Nominal and fair values of derivative instruments

EUR million | Nominal values | Positive fair values | Negative fair values | Net fair values | Nominal values | Positive fair values | Negative fair values | Net fair values
| 2023 | 2022
Currency derivatives |  |  |  |  |  |  |  |
Forwards: Operational cash flow hedging | 1,210 | 31 | -4 | 27 | 902 | 19 | -13 | 6
Options: Operational cash flow hedging | 405 | 6 | -1 | 5 | 1,700 | 12 | -16 | -4
Total cash flow hedge accounted | 1,615 | 37 | -5 | 33 | 2,603 | 32 | -30 | 2
Forwards: Trade and loan receivables hedging | 379 | 4 | -1 | 3 | 1,151 | 7 | -5 | 2
Total non-hedge accounted | 379 | 4 | -1 | 3 | 1,151 | 7 | -5 | 2
Total currency derivatives | 1,994 | 41 | -6 | 35 | 3,754 | 39 | -35 | 4
Commodity derivatives |  |  |  |  |  |  |  |
Electricity swaps: Costs hedging | 14 | 0 | -1 | -1 | 5 | 18 | 0 | 18
Oil swaps: Costs hedging | 14 | 0 | -1 | -1 | 14 | 1 | -1 | 0
Total cash flow hedge accounted | 28 | 0 | -2 | -2 | 19 | 18 | -1 | 18
Electricity swaps: Closed contracts | 0 | 0 | 0 | 0 | 11 | 9 | 0 | 9
Total non-hedge accounted | 0 | 0 | 0 | 0 | 11 | 9 | 0 | 9
Total commodity derivatives | 28 | 0 | -2 | -2 | 30 | 27 | -1 | 27
Interest rate derivatives |  |  |  |  |  |  |  |
Interest rate swaps: Financial expenses hedging | 443 | 16 | 0 | 16 | 450 | 28 | 0 | 28
Total cash flow hedge accounted | 443 | 16 | 0 | 16 | 450 | 28 | 0 | 28
Cross-currency swaps: Financial expenses hedging | 0 | 0 | 0 | 0 | 200 | 0 | -15 | -15
Total non-hedge accounted | 0 | 0 | 0 | 0 | 200 | 0 | -15 | -15
Total interest rate derivatives | 443 | 16 | 0 | 16 | 650 | 28 | -15 | 13
Total cash flow hedge accounted | 2,086 | 54 | -7 | 47 | 3,072 | 78 | -30 | 48
Total non-hedge accounted | 379 | 4 | -1 | 3 | 1,363 | 16 | -20 | -4
Total derivatives | 2,464 | 57 | -8 | 49 | 4,435 | 95 | -51 | 44

Positive and negative fair values of financial derivative instruments are shown under interest-
bearing receivables and liabilities, and non-current interest-bearing receivables and liabilities.
The presented fair values in the table include accrued interest and option premiums.
76
Changes in fair values of hedged items and hedging instruments 2023

EUR million | Change in value of hedged item to determine hedge effectiveness | Change in value of outstanding hedging instruments | Ineffectiveness
Foreign exchange risk - Forward and option contracts (excluding option time value)1 | -23 | 24 | 1
Foreign exchange risk - Net investment hedges | -10 | 10 | 0
Commodity price risk - Commodity swaps | 21 | -21 | 0
Interest rate risk - Interest rate swaps | 13 | -13 | 0
1 Ineffectiveness booked in operating result.

Changes in fair values of hedged items and hedging instruments 2022

EUR million | Change in value of hedged item to determine hedge effectiveness | Change in value of outstanding hedging instruments | Ineffectiveness
Foreign exchange risk - Forward and option contracts (excluding option time value)1 | 77 | -79 | -2
Foreign exchange risk - Net investment hedges 2 | 16 | -16 | 0
Commodity price risk - Commodity swaps | -31 | 31 | 0
Interest rate risk - Interest rate swaps | -34 | 34 | 0
1 Ineffectiveness booked in operating result. 2 Comparison figures restated.

Breakdown of cash flow hedging reserve and net investment hedges in equity 2023

EUR million | At 1 Jan 2023 | Change in fair value recognised in OCI/CTA | Reclassified from OCI to profit and loss | Reclassified to non- financial assets | Tax impact | At 31 Dec 2023
Foreign exchange risk - Operational cash flow hedging | 2 | 20 | 8 | 2 | -6 | 25
Commodity price risk - Commodity swaps | 15 | -21 | 2 | 0 | 4 | -1
Interest rate risk - Interest rate swaps | 23 | -13 | 0 | 0 | 3 | 13
Interest rate and foreign exchange risk - Cross-currency swaps | 1 | 0 | -1 | 0 | 0 | 0
Cost of hedging reserve | -1 | 2 | 0 | 0 | 0 | 1
Total cash flow hedge reserve in OCI | 39 | -12 | 9 | 2 | 0 | 38
Foreign exchange risk - Net investment hedges | 1 | 10 | -2 | 0 | -2 | 7
Total net investment hedges in CTA | 1 | 10 | -2 | 0 | -2 | 7
Total hedging reserves | 40 | -3 | 7 | 2 | -2 | 45

Breakdown of cash flow hedging reserve and net investment hedges in equity 2022

EUR million | At 1 Jan 2022 | Change in fair value recognised in OCI/CTA | Reclassified from OCI to profit and loss | Reclassified to non- financial assets | Tax impact | At 31 Dec 2022
Foreign exchange risk - Operational cash flow hedging | -21 | -82 | 107 | 3 | -5 | 2
Commodity price risk - Commodity swaps | 23 | 41 | -52 | 0 | 3 | 15
Interest rate risk - Interest rate swaps | -4 | 33 | 0 | 0 | -7 | 23
Interest rate and foreign exchange risk - Cross-currency swaps | -1 | 0 | 2 | 0 | 0 | 1
Cost of hedging reserve | -1 | 0 | 0 | 0 | 0 | -1
Total cash flow hedge reserve in OCI | -4 | -8 | 57 | 3 | -9 | 39
Foreign exchange risk - Net investment hedges | 14 | -16 | 0 | 0 | 3 | 1
Total net investment hedges in CTA | 14 | -16 | 0 | 0 | 3 | 1
Total hedging reserves | 10 | -24 | 57 | 3 | -6 | 40

Financial impact of netting for instruments subject to an enforceable master netting
agreement 2023

| Not offset in the statement of financial position |
EUR million | Gross amount of recognised financial instruments | Related liabilities (-) or assets (+) subject to master netting agreements | Collateral received (-) or given (+) | Net exposure
Derivative assets | 57 | -2 | 0 | 56
Derivative liabilities | -8 | 2 | 0 | -6

Financial impact of netting for instruments subject to an enforceable master netting
agreement 2022

| Not offset in the statement of financial position |
EUR million | Gross amount of recognised financial instruments | Related liabilities (-) or assets (+) subject to master netting agreements | Collateral received (-) or given (+) | Net exposure
Derivative assets | 95 | -30 | 0 | 65
Derivative liabilities | -51 | 30 | 0 | -21

The Group enters into derivative transactions under master netting agreements agreed with
each counterparty. In case of an unlikely credit event, such as default, all outstanding
transactions under the agreements are terminated, and only a single net amount per
counterparty is payable for settlement of all transactions. The agreements do not meet the
criteria for offsetting in the statement of financial position, because offsetting is enforceable only
in the occurrence of certain future events.
77
5.5 Shareholders' equity
Accounting principles
Dividend and capital repayments
Any dividend or capital repayment proposed by the Board is not deducted from distributable shareholders’
equity until approved by the shareholders at the Annual General Meeting.
At 31 December 2023, shareholders’ equity amounted to EUR 10,985 (12,532) million,
compared to the market capitalisation on Nasdaq Helsinki of EUR 9,864 (10,503) million. The
market values of the shares were EUR 12.45 (13.90) for A shares and EUR 12.53 (13.15) for R
shares. In 2023, EUR 473 (434) million of dividends was recognised as distributed to owners,
corresponding to EUR 0.60 (0.55) per share.
The A shares entitle the holder to one vote per share, whereas R shares entitle the holder to
one vote per ten shares with a minimum of one vote, though the accountable par of both shares
is the same. A shares may be converted into R shares at any time at the request of a
shareholder. At 31 December 2023, the Company’s fully paid-up share capital, as entered in the
Finnish Trade Register, was EUR 1,342 (1,342) million. The current accountable par of each
issued share is EUR 1.70 (1.70).
At 31 December 2023, Directors and Group Leadership Team members owned 127 (127) A
shares and 506,790 (363,604) R shares representing 0.02% of the total voting rights of the
Company. Full details of Director and Executive interests are shown in note 3.2 Board and
executive remuneration. A full description of Company share award programmes is shown in
note 3.4 Employee variable compensation and equity incentive schemes. However, none of
these have any impact on the issued share capital.
Change in number of shares

| A shares | R shares | Total
At 1 January 2022 | 176,244,049 | 612,375,938 | 788,619,987
Conversion of A shares to R shares | -5,769 | 5,769 | —
At 31 December 2022 | 176,238,280 | 612,381,707 | 788,619,987
Conversion of A shares to R shares | -7,364 | 7,364 | —
At 31 December 2023 | 176,230,916 | 612,389,071 | 788,619,987
Number of votes as at 31 December 2023 1 | 176,230,916 | 61,238,907 | 237,469,823
Share capital at 31 December 2023, EUR million 2 | 300 | 1,042 | 1,342
1 R share votes are calculated by dividing the number of R shares by 10. 2 No changes in share capital in 2023 or 2022.

5.6 Cumulative translation adjustment and equity hedging
Accounting principles
The Group operates internationally and is thus exposed to currency risks arising from exchange rate
fluctuations on the value of its net investment in non-euro entities. Exchange rate differences arising from the
retranslation of net investments in foreign non-euro entities, and financial instruments that are designated as
hedges of such investments, are recognised directly in equity in the cumulative translation adjustment (CTA).
Movements in CTA (including related hedges) are shown in the consolidated statement of comprehensive
income.
The cumulative translation adjustments related to disposed and liquidated entities are combined with their
gain or loss on disposal. The CTA is recycled in the consolidated income statement upon disposal and
liquidation.
The Group policy for translation risk exposure is to minimise this by funding assets in the same currency
whenever economically viable, but if matching the assets and liabilities in the same currency is not possible,
hedging of the remaining translation risk may take place. The Group has also applied net investment loan
accounting for certain intragroup loans for which settlement is neither planned nor likely to occur in the
foreseeable future. These are in substance, a part of the entity’s net investment in the foreign operation.
Cumulative translation adjustment - movement

EUR million | 2023 | 2022
At 1 January |  |
CTA on net investments | -432 | -235
Net investment hedges and loans | 21 | 48
Income tax related to hedges and loans | -5 | -8
Net CTA in equity | -415 | -195
CTA movement OCI |  |
CTA movement | 0 | -244
CTA release through income statement | 56 | 47
Net investment hedges and loans | -15 | -27
Income tax related to hedges and loans | 0 | 3
CTA movement OCI total | 41 | -220
At 31 December |  |
CTA on net investments | -376 | -432
Net investment hedges and loans | 6 | 21
Income tax related to hedges and loans | -4 | -5
Net CTA in equity | -375 | -415

In 2023 the release of cumulative translation adjustments to the income statement amounted to
a loss of EUR 56 million and was related to disposals of Hylte and Nymolla sites in Sweden.
In 2022 the release to the income statement amounted to a loss of EUR 47 million and was
related to disposal of Russian Packaging Solutions, Wood Products and Forest operations. After
the release, there is no CTA remaining related to Russian ruble.
78
Cumulative translation adjustment - financial position

| Cumulative Translation Adjustment (CTA) | Net investment hedges and loans | Net CTA in the statement of financial position
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Brazil | -242 | -255 | 0 | 0 | -242 | -255
China | 151 | 131 | -4 | 10 | 147 | 141
Czech Republic | 39 | 43 | -9 | -9 | 30 | 34
Poland | -22 | -59 | 17 | 17 | -5 | -42
Sweden | -494 | -543 | 33 | 47 | -461 | -497
Uruguay (USD) | 191 | 248 | -31 | -44 | 160 | 204
Others | 1 | 4 | 0 | 0 | 1 | 4
CTA before Tax | -376 | -432 | 6 | 21 | -370 | -411
Taxes | 0 | 0 | -4 | -5 | -4 | -5
Net CTA in Equity | -376 | -432 | 2 | 17 | -375 | -415

Hedging instruments and unrealised hedge losses

| Nominal amount (Currency) | Nominal amount (EUR) | Unrealised losses (EUR)
EUR million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Borrowings |  |  |  |  |  |
USD area | 300 | 300 | 271 | 281 | -33 | -41
Total hedging |  |  | 271 | 281 | -33 | -41

The Group is currently only hedging its equity exposure to the US dollar arising from its joint
operation located in Uruguay with USD functional currency.
5.7 Non-controlling interests
Accounting principles
Non-controlling interests are presented as a separate component within the equity of the Group in the
consolidated statement of financial position. The proportionate shares of profit or loss attributable to non-
controlling interests and to owners of the parent company are presented in the consolidated income
statement after the net result for the period. Transactions between non-controlling interests and Group
shareholders are transactions within equity and are thus shown in the statement of changes in equity. The
measurement type of non-controlling interest is decided separately for each acquisition.
Non-controlling interests

EUR million | 2023 | 2022
At 1 January | -30 | -16
Acquisitions | 2 | 0
Share of net result for the period | -74 | -13
Share of other comprehensive income | 5 | 0
At 31 December | -97 | -30

Principal non-controlling interests

|  | 2023 | 2023 | 2022
Company | Principal place of business | Ownership held by non-controlling Interests, % | EUR million
Stora Enso Pulp and Paper Asia AB Group | Sweden and China | See table below | -100 | -31
Others | - |  | 3 | 1
Total |  |  | -97 | -30

Non-controlling interests in Stora Enso Pulp and Paper Asia AB Group

|  | 2023 | 2022
Company | Principal place of business | Direct-% of NCI | Indirect- % of NCI | Total-% of NCI | Direct-% of NCI | Indirect- % of NCI | Total-% of NCI
Stora Enso Pulp and Paper Asia AB | Sweden and China | 5.79 | — | 5.79 | 5.79 | — | 5.79
Guangxi Stora Enso Forestry Co Ltd | China | 5.00 | 5.50 | 10.50 | 5.00 | 5.50 | 10.50
Stora Enso (Guangxi) Packaging Company Ltd | China | 15.00 | 4.92 | 19.92 | 15.00 | 4.92 | 19.92
Stora Enso (Guangxi) Forestry Company Ltd | China | 15.00 | 4.92 | 19.92 | 15.00 | 4.92 | 19.92

Summarised financial information in respect of the subsidiaries that have material non-
controlling interests is set out below. Stora Enso's approximately 80% owned consumer board
and forestry operations in Beihai, China have been classified as held for sale at the end of 2023.
See note 6.1 Acquisitions, disposals and assets held for sale for more details.
Stora Enso Pulp and Paper Asia AB Group

EUR million | 2023 | 2022
Assets | 858 | 1,235
Equity attributable to the owners of the parent | -345 | -165
Non-controlling interests 1 | -100 | -31
Total equity | -445 | -196
Liabilities | 1,303 | 1,430
Net result for the period | -268 | -74
Attributable to |  |
Owners of the parent | -194 | -61
Non-controlling interests | -74 | -13
Net result for the period | -268 | -74
Net cash flow from operating activities | 16 | 64
Net cash flow from investing activities | -37 | -41
Net cash flow from financing activities | -23 | 4
Net cash flow | -43 | 27
1 No dividends were paid to non-controlling interests in 2023 or 2022.

79
6 Group structure
6.1 Acquisitions, disposals and assets held for sale
Accounting principles
Acquired companies are accounted in accordance with the acquisition method whereby these companies are
included in the consolidated financial statements from the date the control is obtained. Accordingly, the
consideration transferred (including contingent consideration) and the acquired company's identifiable net
assets are measured at fair value at the date of the acquisition. Transaction costs related to acquisition are
expensed as incurred. The measurement type of non-controlling interest is decided separately for each
acquisition, and measured either at fair value or non-controlling interest's proportionate share of the net
assets. The excess of the consideration transferred, non-controlling interest and possible previously held
equity interest over the fair value of net assets of the acquired company is recognised as goodwill.
The disposed companies are included in the consolidated financial statements up to the date when the
control is lost. The gain or loss on disposal together with cumulative translation adjustments (CTA) related to
disposed companies are recognised in the consolidated income statement at the date control is lost. Gains
and losses on the disposal of a Group entity include any goodwill relating to the entity sold.
Assets are classified as held for sale, if their carrying amounts will be recovered mainly through a sale
transaction rather than through continuing use. The assets must be available for immediate sale in their
present condition subject only to terms that are usual and customary for sale of such assets. Also, the sale
must be highly probable and expected to be completed within one year from the date of classification. These
assets and related liabilities are presented separately in the consolidated statement of financial position and
measured at the lower of the carrying amount and fair value less costs to sell. Comparative information is not
restated when classification is made. Assets classified as held for sale are not depreciated.
Acquisition of Group companies
De Jong Packaging Group
In September 2022, Stora Enso signed an agreement to acquire De Jong Packaging Group and
the transaction was completed at the beginning of January 2023. De Jong Packaging Group is
based in the Netherlands and is one of the largest corrugated packaging producers in the
Benelux countries. De Jong Packaging Group is also active in containerboard production
through the acquisition of the De Hoop mill in the Netherlands in 2021. De Jong Packaging
Group has 16 sites in the Netherlands, Belgium, Germany and the UK and employs
approximately 1,300 people. The acquisition will advance Stora Enso’s strategic direction,
increase its corrugated packaging capacity, accelerate revenue growth and build market share in
renewable packaging in Europe. De Jong Packaging Group's products enhance Stora Enso’s
offering. The acquisition is expected to generate synergies over the cycle, mainly through
sourcing, containerboard integration optimisation and commercial opportunities.
The shares of the acquired companies are mainly 100% owned, with certain units having
minor non-controlling interests. The non-controlling interest is measured on the basis of the
proportionate share of the identifiable net assets.
The cash purchase consideration was EUR 612 million, excluding a contingent earn-out
component. The maximum amount of the earn-out component is EUR 45 million, which will be
settled in cash in 2024 and is subject to De Jong Packaging Group achieving certain earnings
thresholds. The contingent consideration is measured at its fair value and is estimated at EUR 0
million at the date of acquisition and at the of the year 2023.
The fair values of the identifiable assets and liabilities as of the acquisition date are presented
in the table below.

EUR million | 2023
Net assets acquired |
Cash and cash equivalents | 27
Property, plant and equipment | 200
Intangible assets | 222
Right-of-use assets | 99
Working capital | 5
Tax assets and liabilities | -56
Interest-bearing assets and liabilities | -233
Fair value of net assets acquired | 265
Purchase consideration, cash part | 612
Purchase consideration, contingent | 0
Total purchase consideration | 612
Fair value of net assets acquired | -265
Non-controlling interest | 2
Goodwill | 349
Cash outflow on acquisitions | -612
Cash and cash equivalents of acquired subsidiaries | 27
Cash flow on acquisition, net of acquired cash | -584

The post combination review was completed at the end of 2023 and therefore acquisition
accounting is considered to be final. The fair values of the acquired assets, liabilities and
goodwill in the table above are representing final acquisition accounting. Measurement period
adjustments in 2023 included property, plant and equipment decrease of EUR 23 million, right-
of-use assets decrease of EUR 5 million, working capital items decrease of EUR 10 million, tax
items increase of EUR 14 million and goodwill increase of EUR 22 million.
The goodwill represent the expected synergies, mainly through sourcing, containerboard
integration optimisation and commercial opportunities. The goodwill is allocated to divisions
benefiting from the acquisition, Packaging Solutions and Packaging Materials. None of the
goodwill recognised is expected to be deductible for tax purposes. Also, as part of the
acquisition, customer related intangible assets have been recognised with a carrying amount of
EUR 167 million and an amortisation period of 15 years, and marketing related intangible assets
of EUR 39 million with amortisation periods of between 5–20 years. See note 4.1 Intangible
assets, property, plant and equipment and right-of-use assets for more details.
For 2023, De Jong Packaging Group contributed sales of EUR 598 million and a net result of
EUR -88 million to the Group’s results, which mainly relate to the De Hoop unit closure
impairment and provision charges with approximately EUR -58 million net result impact. The
acquired units are included in Stora Enso Group’s consolidated sales and net result from the
beginning of 2023. The related transaction costs amounted to EUR 6 million and are presented
in other operating expenses. The acquired units are reported in the Packaging Solutions and
Packaging Materials divisions.
Stora Enso did not complete any company or business acquisitions in 2022.
80
Disposal of Group companies

EUR million | 2023 | 2022
Net assets sold |  |
Cash and cash equivalents | 29 | 90
Property, plant and equipment | 271 | 8
Intangible assets | 60 | 0
Working capital | -5 | -1
Tax assets and liabilities | -28 | 6
Interest-bearing assets and liabilities | -96 | -19
Net assets in disposed companies | 233 | 85
Total disposal consideration | 266 | 70
CTA release | -56 | -47
Asset writedowns 1 | -219 | -155
Loan impairments | 0 | -23
Transaction costs | -6 | -4
Total net gain/loss | -247 | -244
1 2023 mainly related to units classified as held for sale. 2022 mainly related to writedowns in connection to Russia operation disposals and including also writedowns related to paper units which were classified as assets held for sale.

2023
Biocomposite business
In November 2023, Stora Enso divested its Biocomposite business to Sweden Timber, which
also owns the paper production site at Hylte. The sold unit was part of the segment Other at the
time of disposal. The transaction did not have a significant impact on the Group.
Wood Products DIY site
In August 2023, Stora Enso divested its 100% owned Wood Products DIY unit in the
Netherlands to Megahout, a local importer, wholesaler and producer of a wide variety of wood
products. The divestment reduced Stora Enso’s planing capacity by 80,000 m 3. The sold unit
was part of the Wood Products division. The transaction did not have a significant impact on the
Group.
Hylte site
In April 2023, Stora Enso divested its 100% owned Hylte paper production site in Sweden and all
related assets to Sweden Timber, a Swedish based sawmill and planing mill company. The Hylte
site’s annual capacity is 245,000 tonnes of newsprint paper. During 2022, the Group recognised
asset write-downs of EUR 16 million related to the transaction. The selling price of the
transaction was not significant. The loss on disposal was approximately EUR 45 million,
consisting mainly of cumulative translation adjustments (CTA) being released from equity to the
income statement. The sold unit was part of the segment Other at the time of disposal.
Maxau site
In February 2023, Stora Enso divested its 100% owned the Maxau paper production site in
Germany and all related assets to Schwarz Group, one of the top retailers in the world. The
transaction reduced Stora Enso’s annual supercalendered paper (SC paper) capacity by
530,000 tonnes. The selling price of the transaction was approximately EUR 211 million and the
gain on disposal was approximately EUR 52 million. The sold unit was part of the segment Other
at the time of disposal.
Nymölla site
In January 2023, Stora Enso divested its 100% owned Nymölla paper production site in Sweden
and all related assets to Sylvamo, a US-based global producer of uncoated paper. The Nymölla
site’s capacity is 485,000 metric tonnes of woodfree uncoated office papers. During 2022, the
Group recognised asset write-downs of EUR 6 million related to the transaction. The selling
price of the transaction was approximately EUR 49 million. The loss on disposal was
approximately EUR 30 million, consisting mainly of cumulative translation adjustments (CTA)
being released from equity to income statement. The sold unit was part of the segment Other at
the time of disposal.
Russian operations
As communicated in 2022, Stora Enso sold all of its operations in Russia. Related to one forest
operations unit, the disposal was expected to be completed in 2023, upon finalisation of certain
formalities. These formalities were finalised in 2023 and did not have a significant impact on the
Group. For more information about the valuation of remaining Russia-related receivables, see
note 5.3 Interest-bearing assets and liabilities.
2022
Kvarnsveden site
In December 2022, Stora Enso divested its 100% owned Kvarnsveden site in Sweden to
Northvolt, a European supplier of sustainable battery cells. Due to structural decline in demand
for graphical paper, in April 2021 Stora Enso announced a plan to close its Kvarnsveden paper
site and the production was ended in September 2021. The site will be developed into a battery
manufacturing plant, reusing and refurbishing the existing facilities and site infrastructure. The
sold unit was part of segment Other at the time of disposal. The transaction did not have a
significant impact on the Group.
Russian operations - Wood Products and Forest
In July 2022, Stora Enso divested its two Nebolchi and Impilahti sawmills in Russia to local
management. In addition, the divestment included Russian forest operations which supplies
wood to the sawmills. The disposed sawmill sites are located in Novgorod and Karelia and have
a total annual capacity of 350,000 m 3 of sawn timber, including 55,000 m 3 of processed timber
and 65,000 tonnes of pellets. Russian forest operations managed long-term harvesting rights for
around 370,000 hectares. The divested seven legal entities were mainly 100% owned, with
exception of one unit that was 99.48% owned. Related to one forest operations unit, the disposal
will be completed in 2023, upon finalisation of certain formalities. During 2022, the Group
recognised asset write-downs of EUR 74 million (mainly fixed assets, inventories and trade
receivables) related to the transaction. About two thirds of the sale consideration is to be
received in instalments at future dates. The loss on disposal was EUR 24 million, including
cumulative translation adjustments (CTA) being released from equity to income statement. In
addition, there were impairments of loan receivables of EUR 23 million related to the transaction.
The sold units were part of the Wood Products and Forest divisions.
81
Russian operations - Packaging Solutions
In May 2022, Stora Enso divested its three 100% owned corrugated packaging plants in Russia
to local management. The divested three packaging plants are located in Lukhovitsy, Arzamas
and Balabanovo and have a total annual capacity of 395 million m² of corrugated packaging. The
sites primarily produce corrugated packaging in the domestic Russian market. During 2022, the
Group recognised asset write-downs of EUR 42 million (mainly fixed assets, inventories and
trade receivables) related to the transaction. The sale consideration is to be received in
instalments at future dates. The loss on disposal was approximately EUR 49 million, consisting
mainly of cumulative translation adjustments (CTA) being released from equity to income
statement. The sold units were part of the Packaging Solutions division.
Vlar Papier
In February 2022, Stora Enso divested its 100% shareholdings in Vlar Papier NV in Belgium.
The sold company was part of the Paper division at the time of disposal (presented as part of the
segment Other due to the segment changes in 2023). The transaction did not have a significant
impact on the Group.
Assets held for sale

EUR million | 2023 | 2022
Property, plant and equipment | 310 | 261
Intangible assets | 20 | 55
Right-of-use assets | 198 | 2
Forest assets | 184 | 0
Inventories | 79 | 91
Current operative receivables | 48 | 104
Assets held for sale | 839 | 514
Non-current operative liabilities | 0 | 42
Current operative liabilities | 99 | 163
Tax liabilities | 0 | 28
Interest-bearing liabilities | 571 | 4
Liabilities related to assets held for sale | 671 | 237

As announced in December 2022, Stora Enso has initiated a sales process for a divestment of
its consumer board production site and forestry operations in Beihai, China, which are part of the
Packaging Materials division. Stora Enso’s Beihai production site started operations in 2016. It
has a mechanical pulp mill and a consumer board line serving the Chinese market. The annual
production capacity is 250,000 tonnes of mechanical pulp and 550,000 tonnes of consumer
board. Stora Enso also operates about 70 thousand hectares of land in the Guangxi region for
eucalyptus plantations. Stora Enso owns approximately 80% of the production site and forest
operations. In accordance with the progress in the ongoing divestment process, the operations
were classified as held for sale at the end of 2023 and the transaction is expected to be
completed in 2024. In 2023 and in connection to the potential disposal transaction, the Group
recognised EUR 202 million of asset writedowns.
Assets held for sale at the end of 2022 included the Maxau, Nymölla and Hylte sites.
82
6.2 Group companies

|  | Group ownership, % | Group ownership, %
Subsidiaries | Country | 2023 | 2022
A/O Ladenso | Russia | 0.00 | 100.00
Anjala Fiber & Energy Oy | Finland | 100.00 | 100.00
AS Stora Enso Latvija | Latvia | 100.00 | 100.00
Bangma Productie B.V. | Netherlands | 100.00 | 0.00
Bangma Verpakking B.V. | Netherlands | 100.00 | 0.00
Bergnät 1 AB | Sweden | 100.00 | 100.00
Beta Skog 1 AB | Sweden | 100.00 | 100.00
Cellutech AB | Sweden | 100.00 | 100.00
Centrum Dystrybucji i Obróbki Drewna Sp. z.o.o. | Poland | 100.00 | 100.00
Changzhou Stora Enso Packaging Technology Co. Ltd. | China | 100.00 | 100.00
DanFiber A/S | Denmark | 51.00 | 51.00
De Jong Box B.V. | Netherlands | 100.00 | 0.00
De Jong Kasser Ehf. | Iceland | 100.00 | 0.00
De Jong Packaging Ltd. | UK | 100.00 | 0.00
De Jong Verpackung GmbH | Germany | 100.00 | 0.00
De Jong Verpakking B.V. | Netherlands | 100.00 | 0.00
DJV Holding B.V. | Netherlands | 100.00 | 0.00
DJV Strategisch Advies B.V. | Netherlands | 100.00 | 0.00
Dongguan Stora Enso Inpac Packaging Co. Ltd. | China | 100.00 | 100.00
DuraSense AB (formerly Box Inc.) | Sweden | 100.00 | 100.00
eCorrugated Ltd. | UK | 100.00 | 0.00
Efora Oy | Finland | 0.00 | 100.00
Enso Alueverkko Oy | Finland | 100.00 | 100.00
Euro - Timber, spol. s.r.o. | Slovak Republic | 100.00 | 100.00
Felco B.V. | Netherlands | 100.00 | 0.00
Gaster Wellpappe GmbH | Germany | 100.00 | 0.00
Green Packaging System B.V. | Netherlands | 100.00 | 0.00
Guangxi Stora Enso Forestry Co. Ltd. | China | 89.50 | 89.50
Herman Andersson Oy | Finland | 100.00 | 100.00
HESPOL Sp. z.o.o. | Poland | 100.00 | 100.00
Jiashan Stora Enso Inpac Packaging Co. Ltd. | China | 100.00 | 100.00
Karpack B.V. | Netherlands | 100.00 | 0.00
KPMB Agri BV | Belgium | 100.00 | 0.00
KPMB NV | Belgium | 100.00 | 0.00
Lignode AB | Sweden | 100.00 | 100.00
Lignode Holding Oy | Finland | 100.00 | 100.00
Lignode Oy | Finland | 100.00 | 100.00
Lumipaper Ltd | UK | 100.00 | 100.00
Lumipaper NV | Belgium | 100.00 | 100.00
Mena Wood Oy Ltd | Finland | 0.00 | 100.00
PTI Packmitteltechnik GmbH | Germany | 100.00 | 0.00
Pulse Anilox Cleaning B.V. | Netherlands | 100.00 | 0.00
Rudico B.V. | Netherlands | 100.00 | 0.00
Rudico Groep B.V. | Netherlands | 100.00 | 0.00
Rudico Holding B.V. | Netherlands | 100.00 | 0.00
Selfly Store Oy | Finland | 100.00 | 100.00
Skogsutveckling Syd AB | Sweden | 66.67 | 66.67

Stora Enso China Packaging (HK) Co., Limited | Hong Kong | 100.00 | 100.00
Stora Enso (Guangxi) Forestry Company Ltd. | China | 80.08 | 80.08
Stora Enso (Guangxi) Packaging Company Ltd. | China | 80.08 | 80.08
Stora Enso (HK) Ltd | Hong Kong | 100.00 | 100.00
Stora Enso (Southern Africa) (Pty) Ltd | South Africa | 100.00 | 100.00
Stora Enso AB | Sweden | 100.00 | 100.00
Stora Enso Amsterdam B.V. | Netherlands | 100.00 | 100.00
Stora Enso Arapoti Holding Florestal S.A. | Brazil | 100.00 | 100.00
Stora Enso Australia Pty Ltd | Australia | 100.00 | 100.00
Stora Enso Belgium NV | Belgium | 100.00 | 100.00
Stora Enso Bergskog 2 AB | Sweden | 100.00 | 100.00
Stora Enso Bergskog 3 AB | Sweden | 100.00 | 100.00
Stora Enso Bois SAS | France | 100.00 | 100.00
Stora Enso Brasil Ltda | Brazil | 100.00 | 100.00
Stora Enso China Co., Ltd | China | 100.00 | 100.00
Stora Enso China Holdings AB | Sweden | 100.00 | 100.00
Stora Enso Corbehem SAS | France | 100.00 | 100.00
Stora Enso Danmark A/S | Denmark | 100.00 | 100.00
Stora Enso De Hoop B.V. | Netherlands | 100.00 | 0.00
Stora Enso Eesti AS | Estonia | 100.00 | 100.00
Stora Enso Espana S.A.U | Spain | 100.00 | 100.00
Stora Enso Fors AB | Sweden | 100.00 | 100.00
Stora Enso France SAS | France | 100.00 | 100.00
Stora Enso Germany GmbH | Germany | 100.00 | 100.00
Stora Enso Holding B.V. | Netherlands | 100.00 | 0.00
Stora Enso Holding France SAS | France | 100.00 | 100.00
Stora Enso Holdings UK Ltd | UK | 100.00 | 100.00
Stora Enso Hylte Bruk AB | Sweden | 0.00 | 100.00
Stora Enso Ingerois Oy | Finland | 100.00 | 100.00
Stora Enso Inpac Corrugated Packaging (Hebei) Company Limited | China | 100.00 | 100.00
Stora Enso Inpac Hebei Protective Packaging Co., Ltd. | China | 100.00 | 100.00
Stora Enso Inpac Packaging Co. Ltd | China | 100.00 | 100.00
Stora Enso International Oy | Finland | 100.00 | 100.00
Stora Enso Italia Srl | Italy | 100.00 | 100.00
Stora Enso Japan K.K. | Japan | 100.00 | 100.00
Stora Enso Kvarnsveden Industriutveckling AB | Sweden | 100.00 | 100.00
Stora Enso Langerbrugge NV | Belgium | 100.00 | 100.00
Stora Enso LLC | Ukraine | 100.00 | 100.00
Stora Enso Maxau GmbH | Germany | 0.00 | 100.00
Stora Enso Mexico S.A. | Mexico | 100.00 | 100.00
Stora Enso Middle East DMCC | United Arab Emirates | 100.00 | 100.00
Stora Enso Narew Sp.z.o.o. | Poland | 100.00 | 100.00
Stora Enso North American Sales, LLC | USA | 100.00 | 100.00
Stora Enso Nymölla Paper AB | Sweden | 0.00 | 100.00
Stora Enso Oulu Oy | Finland | 100.00 | 100.00
Stora Enso Packaging AB | Sweden | 100.00 | 100.00
Stora Enso Packaging AS | Estonia | 100.00 | 100.00
Stora Enso Packaging Oy | Finland | 100.00 | 100.00
Stora Enso Packaging SIA | Latvia | 100.00 | 100.00

83

Stora Enso Packaging UAB | Lithuania | 100.00 | 100.00
Stora Enso Paper AB | Sweden | 100.00 | 100.00
Stora Enso Paper France SAS | France | 100.00 | 100.00
Stora Enso Paper GmbH | Germany | 100.00 | 100.00
Stora Enso Paper Oy | Finland | 100.00 | 100.00
Stora Enso Paper UK Ltd | UK | 100.00 | 100.00
Stora Enso Pension Trust Ltd. | UK | 100.00 | 100.00
Stora Enso Poland S.A. | Poland | 100.00 | 100.00
Stora Enso Polska Sp.z.o.o. | Poland | 100.00 | 100.00
Stora Enso Portugal Lda | Portugal | 100.00 | 100.00
Stora Enso Praha s.r.o. | Czech Republic | 100.00 | 100.00
Stora Enso Publication Papers Oy Ltd | Finland | 100.00 | 100.00
Stora Enso Pulp AB | Sweden | 100.00 | 100.00
Stora Enso Pulp and Paper Asia AB | Sweden | 94.21 | 94.21
Stora Enso Skog AB | Sweden | 100.00 | 100.00
Stora Enso Skog AS | Norway | 100.00 | 100.00
Stora Enso Skog och Mark AB | Sweden | 100.00 | 100.00
Stora Enso South East Asia Pte Ltd | Singapore | 100.00 | 100.00
Stora Enso Timber AB | Sweden | 100.00 | 100.00
Stora Enso Timber DIY Products B.V. | Netherlands | 0.00 | 100.00
Stora Enso Treasury Stockholm AB | Sweden | 100.00 | 100.00
Stora Enso Turkey Karton Ve Kağıt Ticaret Anonim Sirketi | Turkey | 100.00 | 100.00
Stora Enso UK Limited | UK | 100.00 | 100.00
Stora Enso US Inc. | USA | 100.00 | 100.00
Stora Enso Veitsiluoto Oy | Finland | 100.00 | 100.00
Stora Enso Wood Products d.o.o. Koper | Slovenia | 100.00 | 100.00
Stora Enso Wood Products GmbH | Austria | 100.00 | 100.00
Stora Enso Wood Products Japan K.K. | Japan | 100.00 | 100.00
Stora Enso Wood Products Planá s.r.o. | Czech Republic | 100.00 | 100.00
Stora Enso Wood Products Sp.z.o.o. | Poland | 100.00 | 100.00
Stora Enso Wood Products Zdirec s.r.o. | Czech Republic | 100.00 | 100.00
Stora Enso WP Bad St. Leonhard GmbH | Austria | 100.00 | 100.00
Stora Enso WP HV s.r.o. | Czech Republic | 100.00 | 100.00
Stora Kopparbergs Bergslags AB | Sweden | 100.00 | 100.00
Sumarbox B.V. | Netherlands | 100.00 | 0.00
Sydved AB | Sweden | 66.67 | 66.67
Södra Norrlands Hamnbolag nr 1 AB | Sweden | 100.00 | 100.00
Twinpack B.V. | Netherlands | 100.00 | 0.00
UAB Stora Enso Lietuva | Lithuania | 100.00 | 100.00
Virdia B2X, LLC | USA | 100.00 | 100.00
Virdia LLC | USA | 100.00 | 100.00
Virdia Ltd | Israel | 100.00 | 100.00
Wellpappenfabrik Gesellschaft GmbH | Germany | 80.00 | 0.00

|  | Group ownership, % | Group ownership, %
Associated companies | Country | 2023 | 2022
A.C.D.F. Industrie | France | 35.00 | 35.00
Honkalahden Teollisuuslaituri Oy | Finland | 50.00 | 50.00
Industriewater Eerbeek B.V. | Netherlands | 37.50 | 0.00
Kemira Cell Sp.z.o.o. | Poland | 45.00 | 45.00
Metsäteho Oy | Finland | 23.95 | 23.95
Oy Keskuslaboratorio - Centrallaboratorium Ab | Finland | 32.24 | 32.24
Perkaus Oy | Finland | 33.33 | 33.33
SELF Logistika SIA | Latvia | 50.00 | 50.00
Steveco Oy | Finland | 34.39 | 34.39
Stora Enso Vind 1 AB | Sweden | 50.00 | 0.00
Suomen Keräyspaperi Tuottajayhteisö Oy | Finland | 40.09 | 40.09
SweTree Technologies AB | Sweden | 23.83 | 23.83
Tornator Oyj | Finland | 41.00 | 41.00
Trätåg AB | Sweden | 50.00 | 50.00
TreeToTextile AB | Sweden | 28.94 | 28.94
T&B Containers Holdings Ltd. | UK | 30.00 | 0.00
ZMP GMBH | Austria | 30.00 | 30.00
Österbergs Förpackningsmaskiner AB | Sweden | 50.00 | 50.00
|  | Group ownership, % | Group ownership, %
Other companies | Country | 2023 | 2022
AMEXCI AB | Sweden | 9.10 | 9.10
Arevo AB | Sweden | 12.73 | 7.89
CarbonScape Ltd | New Zealand | 15.00 | 0.00
Clic Innovation Oy | Finland | 9.87 | 9.87
Combient AB | Sweden | 5.40 | 5.40
East Office of Finnish Industries Oy | Finland | 4.00 | 4.00
Packages Limited | Pakistan | 6.40 | 6.40
Pohjolan Voima Oy | Finland | 15.71 | 15.71
PulPac AB | Sweden | 10.30 | 10.30
Radioskog AB | Sweden | 10.00 | 10.00
RK Returkartong AB | Sweden | 8.40 | 8.40
SSG Standard Solutions Group AB | Sweden | 14.29 | 14.29
Suomen Puukauppa Oy | Finland | 10.74 | 10.74
Sölvesborgs Stuveri & Hamn AB | Sweden | 0.00 | 7.36
T&B Containers Ltd. | UK | 30.00 | 0.00
Union Developement Récup. Pap. | France | 10.70 | 10.70

84

|  | Group ownership, % | Group ownership, %
Joint operations | Country | 2023 | 2022
Celulosa y Energia Punta Pereira S.A. | Uruguay | 50.00 | 50.00
El Esparragal Asociación Agraria de Responsabilidad Limitada | Uruguay | 50.00 | 50.00
Eufores S.A. | Uruguay | 50.00 | 50.00
Forestal Cono Sur S.A. | Uruguay | 50.00 | 50.00
Ongar S.A. | Uruguay | 50.00 | 50.00
Stora Enso Uruguay S/A | Uruguay | 50.00 | 50.00
Terminal Logística e Industrial M`Bopocuá S.A. | Uruguay | 50.00 | 50.00
Veracel Celulose SA | Brazil | 50.00 | 50.00
Zona Franca Punta Pereira S.A. | Uruguay | 50.00 | 50.00

6.3 Related party transactions
Balances and transactions between Stora Enso and its subsidiaries and joint operations have
been eliminated on consolidation and are not disclosed in this note. For the other entities which
are classified as the Group's related parties and disclosed in this note, their subsidiary
companies are also considered as related parties.
The Group has classified Solidium Oy as a related party. Solidium Oy is entirely owned by the
State of Finland, and it owned 10.7% of Stora Enso shares and 27.3% of all votes on 31
December 2023. The Group has applied an exemption, outlined in the paragraph 25 of IAS 24,
not to disclose transactions and outstanding balances with government-related entities.
The Group has classified FAM AB and Wallenberg Investments AB as related parties. FAM
AB owned 10.2% of Stora Enso shares and 27.3% of all votes on 31 December 2023. FAM AB is
wholly owned by Wallenberg Investments AB.
The key management personnel of the Group are the members of the Group Leadership
Team and the Board of Directors. The compensation of key management personnel is presented
in note 3.2 Board and executive remuneration.
In the ordinary course of business, the Group engages in transactions on commercial terms
with associated companies, joint arrangements and other related parties that are not any more
favourable than those that would be available to other third parties – with the exception of
Veracel. Stora Enso intends to continue with transactions on a similar basis with its associated
companies and joint arrangements. Further details of the transactions with associated
companies are shown in note 4.3 Associates.
Group companies, including subsidiary companies and joint operations, are listed in note 6.2
Group companies.
Forest assets and wood procurement
The Group has a 41.0% interest in Tornator with the remaining 59.0% being held mainly by
Finnish institutional investors. Stora Enso has long-term purchase contracts of wood at market
prices with the Tornator Group, and in 2023 purchases of 2 (3) million cubic metres came to
EUR 150 (126) million.
The Group procures wood at market prices from Kopparfors Fastigheter AB, a fully owned
subsidiary of Kopparfors Skogar AB, which is wholly owned by FAM AB. In 2023 the purchases
from the related party amounted to EUR 21 (23) million and the sales of services by Stora Enso
to the said related party amounted to EUR 1 (0) million. At the end of 2023 the Group had EUR 6
(6) million of open payables to the related party.
Stevedoring
The Group owns 34.4% of shares in Steveco Oy, a Finnish company engaged in loading and
unloading vessels. The other shareholders in Steveco are UPM-Kymmene, Finnlines and
Myllykoski. The stevedoring services are provided by Steveco at market prices and in 2023
amounted to EUR 24 (27) million.
85
7 Other
7.1 Commitments and contingencies
Accounting principles
Guarantees
The guarantees entered into with financial institutions and other credit guarantors generally oblige the group
to make payment in the event of default by the borrower. The guarantees have an off-balance sheet credit
risk representing the accounting loss that would be recognised at the reporting date if the counterparties fail
to perform completely as contracted. The credit risk amounts are equal to the contract sums, assuming the
amounts are not paid in full and are irrecoverable from other parties.
Commitments

EUR million | 2023 | 2022
On own behalf |  |
Guarantees | 18 | 14
Other commitments | 6 | 0
On behalf of associated companies |  |
Guarantees | 5 | 5
On behalf of others |  |
Guarantees | 16 | 5
Other commitments | 0 | 36
Total | 44 | 60
Guarantees | 38 | 24
Other commitments | 6 | 36
Total | 44 | 60

In 2023, the Group’s commitments amounted to EUR 44 (60) million. In addition, the parent
company Stora Enso Oyj has guaranteed the liabilities of many of its subsidiaries and joint
operations up to EUR 734 ( 826) million as of 31 December 2023.
Capital commitments

EUR million | 2023 | 2022
Total | 683 | 593

Capital expenditure commitments are not recognised in the balance sheet and these include the
Group’s share of direct capital expenditure contracts in joint operations. The largest
commitments in relation to capital expenditure relate to the mill conversion at Oulu site in
Finland.
Contingent liabilities
Stora Enso has undertaken significant restructuring actions in recent years which have included
the divestment of companies, sale of assets and mill closures. These transactions include a risk
of possible environmental or other obligations the existence of which would be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Group. A provision has been recognised for obligations for which the related
amount can be estimated reliably and for which the related future cost is considered to be at
least probable.
Stora Enso has been granted various investment subsidies and has given certain investment
commitments in several countries e.g., Finland, China and Sweden. If commitments to planning
conditions are not met, local officials may pursue administrative measures to reclaim some of
the formerly granted investment subsidies or to impose penalties on Stora Enso, the outcome of
such a process could result in adverse financial impact on Stora Enso.
The Group announced its intention in December 2022 to divest its consumer board
production and forest operations sites in Beihai, China. As previously disclosed, Stora Enso has
been granted investment subsidies and has given certain investment commitments in China.
There is a risk that the majority owned local Chinese company may be subject to a claim based
on alleged costs resulting from certain uncompleted investment commitments. Given the specific
mitigating circumstances surrounding the investment case as a whole, Stora Enso does not
consider it to be probable that this situation would result in an outflow of economic benefits that
would be material to the Group. The Company continues to monitor the situation as the
divestment process proceeds.
Stora Enso is party to legal proceedings that arise in the ordinary course of business and
which primarily involve claims arising out of commercial law. The management does not
consider that liabilities related to such proceedings before insurance recoveries, if any, are likely
to be material to the Group’s financial condition or results of operations.
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 joint
operations 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
fine of, at the time of the decision, BRL 20 (EUR 4) million. 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 relevant authorities. In November 2008, a Federal Court suspended the
effects of the decision. No provisions have been recorded in Veracel’s or Stora Enso’s accounts
for the reforestation or the possible fine.
7.2 Events after the reporting period
The were no significant adjusting or non-adjusting events after the reporting period end.
86
Parent company Stora Enso Oyj financial statements
Parent company income statement

|  | Year ended 31 December
EUR million | Note | 2023 | 2022
Sales | 2 | 2,809 | 3,325
Changes in inventories of finished goods and work in progress + / - |  | -43 | 86
Production for own use |  | 3 | 2
Other operating income | 3 | 658 | 703
Materials and services | 4 | -1,985 | -2,288
Personnel expenses | 5 | -341 | -320
Depreciation and impairment | 6 | -274 | -133
Other operating expenses | 7 | -1,283 | -889
|  | 3,265 | 2,839
Operating profit |  | -455 | 485
Financial income and expenses | 9 | 278 | 290
Profit before Appropriations and Taxes |  | -177 | 775
Appropriations | 10 | 222 | -331
Income tax expense | 11 | 0 | -28
Profit for the period |  | 45 | 416

Parent company statement of financial position

|  | As at 31 December
EUR million | Note | 2023 | 2022
Assets |  |  |
Non-current assets |  |  |
Intangible assets | 13 | 53 | 49
Tangible assets | 13 | 917 | 1,032
Investments | 14 | 8,596 | 8,187
Non-current assets total |  | 9,567 | 9,269
Current assets |  |  |
Inventories | 15 | 473 | 574
Short-term receivables | 16 | 2,257 | 1,278
Financial securities | 17 | 1,550 | 1,130
Cash in hand and at bank |  | 661 | 1,117
Total current assets |  | 4,941 | 4,099
Total assets |  | 14,508 | 13,368
Equity and liabilities |  |  |
Equity | 18 |  |
Share capital |  | 1,342 | 1,342
Share premium |  | 3,639 | 3,639
Fair value reserve |  | 14 | 25
Invested non-restricted equity fund |  | 633 | 633
Retained earnings |  | 864 | 922
Profit for the period |  | 45 | 416
Total equity |  | 6,537 | 6,977
Accumulated appropriations | 19 | 201 | 290
Obligatory provisions | 20 | 36 | 25
Liabilities |  |  |
Non-current liabilities | 22 | 4,123 | 2,265
Current liabilities | 23 | 3,611 | 3,811
Total liabilities |  | 7,734 | 6,076
Total equity and liabilities |  | 14,508 | 13,368

87
Parent company cash flow statement

| Year ended 31 December
EUR million | 2023 | 2022
Cash provided by operating activities |  |
Profit for the period | 45 | 416
Adjustments and reversal of non-cash items: |  |
Direct taxes | 0 | 28
Appropriations | -222 | 331
Depreciation according to plan and impairment | 274 | 133
Unrealised foreign exchange gains and losses | 38 | 18
Other non-cash items | 15 | 13
Financial income and expenses | -278 | -290
Change in working capital: |  |
Increase(-)/decrease(+) |  |
in current non-interest-bearing receivables | 48 | -198
Increase(-)/decrease(+) in inventories | 101 | -187
Increase(+)/decrease(-) |  |
in current non-interest-bearing liabilities | -154 | 199
Cash flow from operating activities before financial items and taxes | -133 | 463
Interest received from operating activities | 181 | 58
Interest paid from operating activities | -173 | -79
Dividends received from operating activities | 371 | 626
Other financial items, net | 36 | -57
Direct taxes paid | -23 | -2
Cash provided by operating activities | 259 | 1,009
Net cash provided by investing activities |  |
Investments in tangible and intangible assets | -166 | -186
Capital gains from sale of tangible and intangible assets | 0 | 0
Investments in other financial assets | -16 | 0
Investments in subsidiary shares and other capital contributions | 0 | -374
Proceeds from disposal of shares in associated companies and repayment of capital | 0 | 10
Proceeds from disposal of other investments | 0 | 0
Payments of non-current loan receivables | -2,184 | -626
Proceeds from non-current loan receivables | 780 | 944
Net cash provided by investing activities | -1,586 | -233

| Year ended 31 December
EUR million | 2023 | 2022
Cash flow from financing activities |  |
Proceeds from (issue of) long-term liabilities | 3,468 | 350
Proceeds from (payment of) long-term liabilities | -1,623 | -560
Proceeds from (issue of) short-term liabilities | 164 | 1,587
Proceeds from (payment of) short-term liabilities | -249 | -546
Dividends paid | -472 | -434
Group contributions received | 0 | -275
Cash flow from financing activities | 1,287 | 121
Net change in cash and cash equivalents | -39 | 897
Translation differences | 3 | -1
Cash and cash equivalents at start of year | 2,247 | 1,350
Cash and cash equivalents at year end | 2,211 | 2,247
Cash and cash equivalents at year end includes: |  |
Financial securities | 1,550 | 1,130
Cash in hand and at bank | 661 | 1,117
Cash and cash equivalents total | 2,211 | 2,247

88
Notes to the parent company financial statements
Note 1 Accounting principles
The financial statements of Stora Enso Oyj have been prepared in accordance with the Finnish
Accounting Act and other current rules and regulations concerning financial statements in
Finland. The financial statements are presented in millions of euros and rounded and therefore
the sum of individual figures might deviate from the presented total figure.
Derivative contracts
Stora Enso is exposed to several financial market risks that the Group is responsible for
managing under policies approved by the Board of Directors. The objective is to have cost-
effective funding in Group companies and to manage financial risks using financial instruments
in order to decrease earnings volatility. The main exposures for the Group are interest rate risk,
currency risk, funding risk and commodity price risk, especially for fiber and energy. The parent
company manages these risks centrally in the Group. The Group’s risk management principles
are presented in more detail in note 5.1 Financial Risk Management to the consolidated financial
statements.
Derivative contracts are measured at fair value on the balance sheet. Derivatives with
external counterparties that are subject to hedge accounting are recognised as financial assets
and liabilities at fair value through the income statement in the same manner as the parent
company’s derivatives with other Group companies as counterparties. The parent company’s
derivative contracts that are used to hedge the parent company’s own cash flow are measured
at fair value, and the change in fair value (effective part) is recognised, in line with hedge
accounting principles, in the fair value reserve in equity on the balance sheet, while the
ineffective part is recognised in the parent company’s income statement. The change in fair
value of derivatives not included in hedge accounting is entered immediately in the income
statement.
Interest income and expenses related to derivatives that are used to manage the interest rate
risk are allocated over the contract period and are used to adjust interest expenses related to
hedged loans. Option premiums are recognised as advance payments until the options mature.
With regard to derivatives, more information about the measurement principles, fair values
and changes in fair value is provided in note 25 Financial instruments.
Foreign currency transactions
Transactions in foreign currencies are recorded at the rate of exchange prevailing at the
transaction date, but at the end of the month foreign-currency-denominated receivables and
liabilities are translated using the month-end exchange rate.
Equity incentive schemes
The employees covered by the scope of Stora Enso Oyj’s share-based incentive schemes are
awarded with shares in the company. The awarded shares and the costs of the schemes are
recognised as an expense in the income statement when the shares are delivere d. The
settlement covers taxes and similar changes incurred. The principles of the Group’s share
opportunity programmes are presented in more detail in note 3.4 Employee variable
compensation and equity incentive schemes to the consolidated financial statements.
Pensions
Statutory pension security is arranged through employment pension insurance companies
outside the Group. Some employees have additional pension security through life insurance
companies outside the Group. Pension contributions are allocated in accordance with
performance-based salaries and wages for the financial period.
Non-current assets
The balance sheet value of intangible and tangible assets is their direct acquisition cost less
depreciation according to plan and any impairment. Depreciation according to plan is recognised
for intangible and tangible assets, based on their expected useful lives.

Depreciation is based on the following useful lives: |
Buildings and structures | 10–50 years
Production machinery and equipment | 10–20 years
Light machinery and equipment | 3–5 years
Intellectual property rights | 3–20 years

No depreciation is recognised for land and water areas.
Interest in Group companies
Interest in the Group companies is measured at cost less any impairment losses. Interest in the
Group companies is assessed for impairment annually.
The fair value of the subsidiary shares has been assessed mainly based on income
approach, in which the fair value of investment is calculated based on the discounted cash flow
model (DCF). Impairment need is assessed by comparing the fair value of the subsidiary shares
to the book value in the parent company’s balance sheet and possible write down is booked
through profit or loss, if considered permanent in nature.
Loan receivables
Loan receivables are debt instruments with fixed or determinable payments that are not quoted
on an active market. They are recorded initially at fair value and subsequently measured at an
amortised cost. Investments in subsidiaries and other companies are measured at cost, or fair
value in case the fair value is less than cost. Loan receivables are presented in the balance
sheet item Investments. The loan receivables are mainly from Group companies.
89
Inventories
Inventories are measured at acquisition cost or at net realisable value if lower. Acquisition cost is
determined using the FIFO method or the weighted average cost method. The cost of finished
goods and work in progress comprises raw materials, direct labour, depreciation and other direct
costs, as well as the related production overhead. Net realisable value is the estimated selling
price less the costs of completion and sale.
Leasing
Leasing payments are recognised in other operating expenses. The remaining leasing payments
under leasing agreements are presented in note 24 Commitments and Contingencies.
Expenditure on research and development
Expenditure on research and development is recognised as an expense for the financial period.
Income taxes
The tax expense on the income statement includes income taxes based on the taxable profit for
the financial period and tax adjustments for previous periods. The parent company does not
recognise deferred tax assets and liabilities, excluding derivatives, in its financial statements.
Deferred tax assets and liabilities that can be recognised on the balance sheet are presented in
note 21 Deferred tax liabilities and receivables.
Obligatory provisions
Future costs and losses that no longer generate corresponding income, to which the company is
committed or by which the company is obligated, are recognised in the income statement
according to their nature and in obligatory provisions on the balance sheet.
Emission rights
During 2023, 0.4 million tonnes of free emission allowances in accordance with the EU
Emissions Trading Directive were allocated to the company. Emission allowances are
recognised through a net cash cost basis, meaning that the difference between the actual
emissions and the emission allowances received is recognised through profit or loss if the actual
emissions are larger than the emission allowances received. During the financial period, the
emissions emitted were estimated at 0.3 million tonnes. The emission rights purchased during
the financial period are recognised in other operating expenses, and the emission rights sold
during the financial period are recognised in other operating income.
At the end of the financial period, the market value of the emission rights was EUR 77.25 per
tonne.
Comparability of the information for the financial period
Net sales of Stora Enso Oyj include the group's internal production and sales service charges.
The parent company and certain group companies have agreed on allocation of profit based on
the operating model of the group. The allocation of profit is presented as other operating income
or expenses. The operating model of the Group came into effect in 2022.
The derivative accounts intended to hedge trade receivables and the accounts for the
exchange rate differences of sales related to these hedges were transferred from net sales and
other operating income to financial income and expenses during the 2023 financial period.
Note 2 Net sales by division and market area

EUR million | 2023 | 2022
By division |  |
Packaging Materials | 1,564 | 1,882
Biomaterials | 351 | 296
Forest | 596 | 700
Wood Products | 158 | 228
Other | 140 | 219
Total | 2,809 | 3,325
Distribution by region |  |
Finland | 1,256 | 1,361
Other Europe | 888 | 1,076
North and South America | 211 | 298
Asia and Oceania | 279 | 381
Africa | 99 | 118
Others | 76 | 91
Total | 2,809 | 3,325

Note 3 Other operating income

EUR million | 2023 | 2022
Rent and equivalents | 3 | 3
Gains on sale of fixed assets | 0 | 0
Insurance compensation | 0 | 0
Production and maintenance services | 0 | 1
Subsidies, grants and equivalents | 11 | 2
Administration services | 64 | 60
Proceeds from sales of emission rights | 75 | 52
Other operating income 1 | 505 | 586
Total | 658 | 703

1 Other operating income in 2022 and 2023 consists mainly of items relating to the division based operating model in the Group.
Note 4 Materials and services

EUR million | 2023 | 2022
Materials and supplies |  |
Purchases during the period | 1,402 | 1,822
Change in inventories +/- | 59 | -105
External services | 524 | 571
Total Materials and Services | 1,985 | 2,288

90
Note 5 Personnel expenses and average number of employees

EUR million | 2023 | 2022
Salaries and fees | 278 | 263
Statutory employer costs |  |
Pensions | 52 | 47
Other personnel costs | 10 | 9
Total | 341 | 320

Remuneration for the CEO and the members of the Board of Directors
Remuneration for the CEO and the members of the Board of Directors is presented in note 3.2
Board and executive remuneration to the consolidated financial statements.
Pension liabilities for the CEO
Pension liabilities for the CEO are presented in note 3.2 Board and executive remuneration to
the consolidated financial statements.
Receivables from management
There were no loan receivables from the company’s management.

Average number of employees | 2023 | 2022
Number of employees during the financial period | 4,048 | 4,066

Note 6 Depreciation and impairment

EUR million | 2023 | 2022
Depreciation according to plan | 126 | 133
Impairment of fixed assets | 148 | 1
Total | 274 | 133
Depreciation and amortisation on each item in the statement of financial position is included under intangible and tangible assets.

Note 7 Other operating expenses

EUR million | 2023 | 2022
Product freight | 204 | 267
Sales commissions | 60 | 55
Rental costs | 22 | 20
Administration and office services | 330 | 319
Insurance premiums | 18 | 12
Other personnel expenses | 18 | 17
Public and other relations | 4 | 4
Emission rights expenses | 60 | 40
Other operating expenses 1 | 563 | 154
Merger loss | 4 | 0
Total | 1,283 | 889

1 Other operating expenses in 2022 and 2023 consist mainly of items relating to the division based operating model in the Group.
Note 8 Auditors’ fees

EUR million | 2023 | 2022
Audit fees | 1 | 1
Other audit-related fees | 0 | 0
Tax fees | 0 | 0
Other fees | 0 | 0
Total | 2 | 2

Note 9 Financial income and expenses

EUR million | 2023 | 2022
Dividend income |  |
From Group companies | 346 | 601
From associated companies | 25 | 25
From others | 1 | 0
Total | 371 | 626
Interest income from non-current investments |  |
From Group companies | 96 | 52
From associated companies | 1 | 0
From others | 1 | 2
Total | 98 | 55
Other interest and financial income |  |
From Group companies | 48 | 20
From associated companies | 0 | 9
From others | 54 | 14
Total | 102 | 44
Total financial income | 571 | 725
Interest and other financial expenses |  |
To Group companies | -69 | -38
Other financial expenses | -149 | -93
Total | -217 | -131
Impairment on investments |  |
Impairment on investments in non-current assets | -75 | -305
Total financial expenses | -293 | -435
Total financial income and expenses | 278 | 290
The item “Financial Income and Expenses” includes exchange rate gains/losses (net) | 15 | -17

91
Note 10 Appropriations

EUR million | 2023 | 2022
Difference between depreciation according to plan and depreciation recognised in taxation | 89 | -56
Group contributions received | 133 | 0
Group contributions paid | 0 | -275
Total appropriations | 222 | -331

Note 11 Income tax expense

EUR million | 2023 | 2022
Income taxes from primary operations for the period | 0 | -28
Total income tax | 0 | -28

Note 12 Environmental expenses

EUR million | 2023 | 2022
Materials and services | 40 | 43
Personnel expenses | 3 | 3
Depreciation and impairment | 29 | 12
Total | 72 | 58
Air quality protection | 19 | 9
Wastewater treatment | 34 | 25
Waste management | 12 | 15
Soil and groundwater protection | 1 | 1
Other environmental protection measures | 5 | 7
Total | 72 | 58

Note 13 Intangible and tangible assets

Intangible assets
EUR million | Intellectual property rights | Other non- current expenditure | Advance payments and acquisitions in progress | Total
Acquisition cost 1 Jan | 171 | 23 | 14 | 208
Increases | 3 | 2 | 17 | 23
Decreases | 0 | 0 | 0 | 0
Reclassification | 7 | 2 | -7 | 1
Acquisition cost 31 Dec | 180 | 26 | 25 | 231
Accumulated depreciation and impairment 1 Jan | -138 | -21 | 0 | -158
Accumulated depreciation on decreases and reclassifications | 0 | 0 | 0 | 0
Depreciation for the period | -14 | -1 | 0 | -15
Impairments | -2 | -3 | 0 | -6
Accumulated depreciation 31 Dec | -153 | -25 | 0 | -178
Book value on 31 December 2023 | 27 | 2 | 25 | 53
Book value on 31 December 2022 | 33 | 2 | 14 | 49

Tangible assets |  |  |  |  |  |
EUR million | Land and water areas | Buildings and structures | Plant and equipment | Other tangible assets | Advance payments and acquisitions in progress | Total
Acquisition cost 1 Jan | 18 | 605 | 2,853 | 181 | 107 | 3,764
Increases | 0 | 13 | 78 | 1 | 49 | 141
Decreases | 0 | -3 | -8 | 0 | 0 | -10
Reclassification | 0 | 10 | 83 | 1 | -96 | -1
Acquisition cost 31 Dec | 18 | 626 | 3,006 | 184 | 59 | 3,893
Accumulated depreciation and impairment 1 Jan | 0 | -433 | -2,140 | -160 | 0 | -2,734
Accumulated depreciation on decreases and reclassifications | 0 | 3 | 8 | 0 | 0 | 10
Depreciation for the period | 0 | -14 | -95 | -2 | 0 | -112
Impairment for the period | 0 | -22 | -119 | -2 | 0 | -142
Accumulated depreciation 31 Dec | 0 | -466 | -2,347 | -165 | 0 | -2,977
Increase in value 1 Jan | 2 | 0 | 0 | 0 | 0 | 2
Increase in value 31 Dec | 2 | 0 | 0 | 0 | 0 | 2
Book value on 31 December 2023 | 20 | 160 | 659 | 19 | 59 | 917
Book value on 31 December 2022 | 20 | 173 | 712 | 21 | 107 | 1,032
Production plant and equipment |  |  |  |  |  |
Book value on 31 December 2023 |  |  | 626 |  |  |
Book value on 31 December 2022 |  |  | 693 |  |  |

Advance payments and acquisitions in progress
EUR million | Intangible assets | Buildings and structures | Plant and equipment | Total
Acquisition cost 1 Jan | 14 | 5 | 101 | 121
Increases | 17 | 1 | 47 | 66
Reclassification | -7 | -5 | -91 | -104
Acquisition cost 31 Dec 2023 | 25 | 1 | 58 | 84

92

Capitalised environmental expenditure |  |  |  |  |
Tangible assets |  |  |  |  | 31 Dec 2023
EUR million | Land and water areas | Buildings and structures | Plant and equipment | Other tangible assets | Advance payments and acquisitions in progress | Total
Acquisition cost 1 Jan | 4 | 21 | 53 | 4 | 19 | 101
Increases | 0 | 5 | 17 | 0 | -1 | 21
Depreciations for the period | 0 | -4 | -24 | -1 | 0 | -29
Book value on 31 December 2022 | 4 | 22 | 46 | 3 | 18 | 93
Air quality protection | 1 | 6 | 33 | 0 | 11 | 50
Wastewater treatment | 0 | 4 | 10 | 0 | 4 | 18
Waste management | 2 | 1 | 1 | 2 | 1 | 7
Soil and groundwater protection | 1 | 12 | 2 | 1 | 2 | 17
Noise and vibration prevention | 0 | 0 | 1 | 1 | 0 | 1
| 4 | 22 | 46 | 3 | 18 | 93

|  |  |  |  |  | 31 Dec 2022
EUR million | Land and water areas | Buildings and structures | Plant and equipment | Other tangible assets | Advance payments and acquisitions in progress | Total
Acquisition cost 1 Jan | 4 | 24 | 51 | 4 | 11 | 95
Increases | 1 | 0 | 9 | 1 | 8 | 18
Depreciations for the period | 0 | -2 | -8 | -1 | 0 | -12
Book value on 31 December 2021 | 4 | 22 | 52 | 5 | 19 | 101
Air quality protection | 1 | 7 | 35 | 0 | 12 | 55
Wastewater treatment | 0 | 2 | 13 | 0 | 4 | 20
Waste management | 2 | 0 | 1 | 3 | 0 | 7
Soil and groundwater protection | 1 | 12 | 2 | 0 | 2 | 18
Noise and vibration prevention | 0 | 0 | 1 | 1 | 0 | 1
| 4 | 22 | 52 | 5 | 19 | 101
In 2023 and 2022, no environmentally based fines, charges or compensation were paid. Subsidies were received for environmental protection of EUR 0.9 million (EUR 1.2 million in 2022)

Note 14 Non-current investments in shares and loan receivables

EUR million | Shares in Group companies | Loan receivables from Group companies | Shares in associated companies | Loan receivables from associated companies | Other shares | Other receivables | Total investments
Acquisition cost 1 Jan | 6,845 | 1,428 | 37 | 2 | 193 | 102 | 8,606
Increases | 0 | 488 | 0 | 23 | 16 | 1 | 529
Decreases | -15 |  | 0 | 0 | 0 | -34 | -49
Acquisition cost 31 Dec | 6,830 | 1,916 | 37 | 25 | 209 | 68 | 9,086
Impairments 1 Jan | -412 | 0 | 0 | 0 | -1 | -5 | -419
Increases | -71 | 0 | 0 | 0 | 0 | 0 | -71
Impairments 31 Dec | -483 | 0 | 0 | 0 | -1 | -5 | -490
Book value on 31 December 2023 | 6,347 | 1,916 | 37 | 25 | 208 | 63 | 8,596
Book value on 31 December 2022 | 6,432 | 1,428 | 37 | 2 | 191 | 97 | 8,187

Note 15 Inventories

| 2023 | 2022
Materials and supplies | 229 | 288
Work in progress | 9 | 11
Finished goods | 206 | 247
Other inventories | 0 | 0
Prepayments | 28 | 27
Total | 473 | 574

93
Note 16 Short-term receivables

EUR million | 2023 | 2022
Short-term loan receivables |  |
Receivables from Group companies |  |
Loan receivables | 1,455 | 536
Interest receivables | 38 | 50
Total | 1,493 | 585
Receivables from others |  |
Loan receivables | 11 | 0
Commodity derivative receivables | 0 | 18
Other receivables | 36 | 29
Interest receivables | 12 | 23
Total | 59 | 69
Total current interest-bearing receivables | 1,553 | 654
Current non-interest-bearing receivables |  |
Receivables from Group companies |  |
Trade receivables | 240 | 150
Other receivables | 274 | 183
Commodity derivative receivables | 0 | 0
Accrued income | 0 | 0
Total | 515 | 333
Receivables from equity accounted investments |  |
Trade receivables | 1 | 0
Total | 1 | 0
Receivables from others |  |
Trade receivables | 137 | 219
Other receivables | 32 | 41
Accrued income | 21 | 30
Total | 189 | 290
Stora Enso may enter into factoring agreements to sell trade receivables in order to accelerate cash conversion. Nominally, such agreements led to the nominal derecognition of EUR 42,8 million (EUR 30 million in 2022) by the end of the financial period. The continuing involvement of Stora Enso in the sold receivables was estimated as being insignificant due to the non-recourse nature of the factoring arrangements involved.

EUR million | 2023 | 2022
Total current non-interest-bearing receivables | 705 | 624
Total current receivables | 2,257 | 1,278
Significant accruals |  |
Tax-equivalent receivables | 0 | 3
Advances paid | 8 | 8
Other accruals | 13 | 19
Total | 21 | 30

Note 17 Financial securities

EUR million | 2023 | 2022
From Group companies | 16 | 620
From others | 1,534 | 510
Total | 1,550 | 1,130

Note 18 Shareholders' equity

EUR million | 2023 | 2022
Restricted shareholders' equity |  |
Share capital 1 Jan | 1,342 | 1,342
Share capital 31 Dec | 1,342 | 1,342
Share premium fund 1 Jan | 3,639 | 3,639
Share premium fund 31 Dec | 3,639 | 3,639
Fair value reserve 1 Jan | 25 | -6
Increase (-) / Decrease (+) | -11 | 32
Fair value reserve 31 Dec | 14 | 25
Total restricted equity | 4,995 | 5,006
Change in share capital and number of shares are presented in Note 5.5 to the consolidated financial statements. |  |
Non-restricted shareholders' equity |  |
Invested unrestricted equity reserve 1 Jan | 633 | 633
Invested unrestricted equity reserve 31 Dec | 633 | 633
Retained earnings 1 Jan | 1,338 | 1,356
Dividend distribution | -473 | -434
Retained earnings 31 Dec | 864 | 922
Profit for the period | 45 | 416
Total non-restricted equity | 1,542 | 1,971
Total shareholders' equity | 6,537 | 6,977
Calculation of distributable equity 31 Dec |  |
Invested unrestricted equity reserve 31 Dec | 633 | 633
Retained earnings 31 Dec | 864 | 922
Profit for the period | 45 | 416
Total | 1,542 | 1,971

94
Note 19 Accumulated appropriations

EUR million | 2023 | 2022
Depreciation difference |  |
Intellectual property rights | -4 | -1
Goodwill | 0 | 0
Other non-current expenditure | -2 | 1
Buildings and structures | 13 | 34
Plant and equipment | 198 | 257
Other tangible assets | -3 | -1
Total | 201 | 290

Note 20 Obligatory provisions

EUR million | 2023 | 2022
Restructuring provisions | 20 | 3
Environmental provisions | 14 | 20
Pension provisions | 1 | 1
Other provisions | 1 | 0
Total | 36 | 24

Note 21 Deferred tax liabilities and receivables

EUR million | 2023 | 2022
Deferred tax liability due to depreciation difference | -23 | -41
Deferred tax receivables and liabilities due to derivatives | -4 | -6
Deferred tax receivable due to loss | 48 | 0
Deferred tax receivable due to provisions | 7 | 5
Deferred tax receivables and liabilities due to other temporary differences | -1 | -1
Total deferred tax receivable | 27 | -43
Deferred tax liabilities and receivables excluding derivatives have not been recognised on the balance sheet.

Note 22 Non-current liabilities

EUR million | 2023 | 2022
Non-current liabilities |  |
Bonds | 3,472 | 2,165
Loans from credit institutions | 651 | 100
Other non-current liabilities | 0 | 0
Other non-current liabilities to group companies | 0 | 0
Total | 4,123 | 2,265
Liabilities with maturities later than five years |  |
Bonds | 1,303 | 1,075
Other non-current liabilities | 4 | 5
Total | 1,308 | 1,080
Specifications of Bond loans are presented in Note 5.3 Interest-bearing liabilities in consolidated financial statements.

Note 23 Current liabilities

EUR million | 2023 | 2022
Current interest-bearing liabilities |  |
Liabilities to Group companies |  |
Other loans | 2,396 | 1,966
Commodity derivative liabilities | 0 | 18
Interest due | 0 | 0
Total | 2,396 | 1,984
Liabilities to others |  |
Other loans | 224 | 141
Interest due | 50 | 32
Bonds | 136 | 300
Loans from credit institutions | 100 | 250
Total | 511 | 722
Total current interest-bearing liabilities | 2,907 | 2,706
Current non-interest-bearing liabilities |  |
Liabilities to Group companies |  |
Trade payables | 72 | 90
Other loans | 0 | 275
Commodity derivative liabilities | 1 | 6
Accrued liabilities and deferred income | 3 | 0
Total | 75 | 371
Liabilities to associated companies |  |
Trade payables | 126 | 98
Total | 126 | 98
Liabilities to others |  |
Advances received | 6 | 5
Trade payables | 393 | 468
Other loans | 22 | 27
Accrued liabilities and deferred income | 82 | 134
Total | 503 | 635
Total current non-interest-bearing liabilities | 704 | 1,105
Total current liabilities | 3,611 | 3,811
Substantial accrued liabilities and deferred income |  |
Payroll payments accrued | 56 | 66
Income tax accrued | 0 | 28
Annual discounts | 12 | 21
Other accrued liabilities and deferred income | 14 | 18
Total | 82 | 134

95
Note 24 Commitments and contingencies

EUR million | 2023 | 2022
For Group debt |  |
Guarantees | 734 | 794
On behalf of Associated companies |  |
Guarantees | 5 | 37
On behalf of others |  |
Guarantees | 10 | 0
Loan commitments | 0 | 36
Other commitments, own |  |
Leasing commitments, in next 12 months | 9 | 8
Leasing commitments, after next 12 months | 13 | 14
Mortgages | 0 | 0
Lease commitments | 5 | 5
Other commitments | 15 | 12
Total | 792 | 906
Guarantees | 748 | 831
Leasing commitments | 23 | 22
Lease commitments | 5 | 5
Other commitments | 15 | 47
Total | 792 | 906

Contingent liabilities
Stora Enso Oyj has implemented significant restructuring measures in recent years. These
measures have included divestments of business operations and production units, as well as mill
closures. These transactions include a risk of possible environmental or other obligations, the
existence of which would be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Group. A provision has been
recognised for obligations for which the related amount can be estimated reliably and the
occurrence of which is considered likely.
Stora Enso Oyj has been granted various investment subsidies and has given certain
investment commitments in Finland. If committed planning conditions are not met, local officials
may pursue administrative measures to reclaim some of the formerly granted investment
subsidies or to impose penalties on Stora Enso Oyj and the outcome of such a process could
result in a negative financial impact on Stora Enso Oyj.
Stora Enso Oyj is party to legal proceedings that arise in the ordinary course of business and
primarily involve claims arising out of commercial law. The company management does not
believe that such processes as a whole, before any insurance compensation, would have
significant impacts on the company’s financial position or profit from operations. Some of the
most significant legal proceedings are described in n ote 7.1 to the consolidated financial
statements.
Note 25 Financial instruments
Valuation of derivatives
The fair value is defined as the amount at which a derivative instrument could be exchanged in
an orderly transaction between market participants at the measurement date. The fair values of
such instruments are determined on the following basis:
• Foreign exchange forward contract fair values are calculated using forward exchange rates
on the reporting date.
• Foreign exchange option contract fair values are calculated using reporting date market rates
together with common option pricing models.
• Commodity contract fair values are computed with reference to quoted market prices on
futures exchanges or other reliable market sources.
• Interest rate swaps fair values are calculated using a discounted cash flow method.
Fair value hierarchy
Stora Enso uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
• Level 2: other techniques, for which all inputs that have a significant effect on the recorded
fair value are observable, either directly or indirectly;
• Level 3: techniques which use inputs that have a significant effect on the recorded fair values
that are not based on observable market data.
The parent company's derivatives are classified as Level 2 in the fair value hierarchy.
Nominal and fair values of derivative instruments

| As at 31 December 2023
EUR million | Nominal values | Positive fair values | Negative fair values | Fair values, Net
Cash flow hedges entered on behalf of the parent company and its subsidiaries, for which hedge accounting is applied in target companies |  |  |  |
Foreign exchange forwards | 2,284 | 34 | -34 | 1
Foreign exchange options | 667 | 7 | -5 | 2
Commodity contracts | 27 | 1 | -1 | 0
Interest rate swaps | 443 | 16 | 0 | 16
Non-hedge accounted derivatives |  |  |  |
Foreign exchange forwards | 588 | 5 | -5 | 0
Total | 4,009 | 63 | -44 | 19
of which against subsidiaries | 1,586 | 6 | -37 | -31
of which against external parties | 2,423 | 56 | -7 | 49

96

| As at 31 December 2022
EUR million | Nominal values | Positive fair values | Negative fair values | Fair values, Net
Cash flow hedges entered on behalf of the parent company and its subsidiaries, for which hedge accounting is applied in target companies |  |  |  |
Currency forwards | 1,523 | 29 | -26 | 3
Currency options | 3,222 | 28 | -28 | 0
Commodity contracts | 10 | 18 | -18 | 0
Interest rate swaps | 442 | 28 | 0 | 28
Non-hedge accounted derivatives |  |  |  |
Currency forwards | 1,493 | 8 | -8 | 0
Commodity contracts | 11 | 9 | 0 | 9
Total | 6,702 | 120 | -79 | 41
of which against subsidiaries | 2,571 | 29 | -45 | -15
of which against external parties | 4,131 | 91 | -34 | 57

Fair value reserve
The net amount of the parent company's unrealised cash flow hedge gains in the fair value
reserve was EUR 14.3 (25.3) million, which was related to currency and interest rate derivatives.
Currency and interest rate derivatives also include a gain of EUR 0.2 (0.1) million related to the
time value of options. These unrealised gains are recognised in the income statement upon the
maturity of the hedging contracts. The longest hedging contract will mature in 2027. However,
the majority of the contracts are expected to mature during 2024. The ineffective portions of
hedges are recognised as adjustments to financial items, revenue or materials and services
according to the hedged item. During 2023 and 2022, there were no material ineffectiveness
related to hedges recognised in the income statement. Derivatives used in currency cash flow
hedges are mainly forward contracts and options. Swaps are mainly used in commodity hedges
and interest rate cash flow hedges.
Hedge gains and losses in operating profit

EUR million | 2023 | 2022
Cash flow hedge accounted derivatives |  |
Currency hedges | 2 | -20
Total | 2 | -20
As adjustments to sales | 2 | -20
As adjustments to materials and services | 0 | 0
Items realised from the fair value reserve that are recognised in the income statement | 2 | -20
Net losses from cash flow hedges | 2 | -20
Non-hedge accounted derivatives |  |
Currency derivatives | 0 | -5
Net gains on non-hedge accounted derivatives | 0 | -5
Net hedge gains/losses in operating profit | 2 | -25

Hedge gains and losses in financial items

EUR million | 2023 | 2022
Non-hedge accounted derivatives |  |
Currency derivatives | -21 | -1
Net gains/losses in financial items | -21 | -1

Sensitivity of currency derivatives to strengthening of EUR

| 31 December 2023
EUR million | SEK | USD | GBP
Currency change against EUR | -5.0% | -5.0% | -5.0%
Nominals of currency derivatives hedging next 12 months cash flow in EUR | 0 | -136 | -11
Estimated effect on fair value reserve in EUR (net of taxes) | 0 | 5 | 0

Sensitivity of commodity derivatives to price risk
There were no outstanding commodity derivatives related to parent company's cash flows at the
end of reporting period. .
More detailed information about financial instruments are presented in Note 5.1 Financial risk
management, Note 5.2 Fair values and Note 5.4 Derivatives to the consolidated financial
statements.
Note 26 Related party transactions

EUR million | 2023 | 2022
Related party transactions with associated companies and joint ventures: |  |
Purchase of materials and supplies during the year | 23 | 63
Interest income on non-current loan receivables | 1 | 0
Non-current loan receivables at year end | 26 | 2
Trade payables at year end | 126 | 92
The Group's principles for related party transactions are presented in Note 6.3 to the consolidated financial statements.

97
Note 27 Separated Electricity business statements
Basis of preparation of the separated electricity business statements: income, costs, assets and liabilities
immediately attributable to the electricity business are allocated directly and indirect costs and non-
attributable items are allocated according to allocation or allocation keys.
Electricity business income statement

EUR million | 2023 | 2022
Sales | 126 | 170
Other operating income | 1 | 2
Materials and services | -113 | -161
Personnel expenses | 0 | 0
Depreciation and impairment | -14 | -7
Other operating expenses | -1 | -1
Operating profit | -2 | 4
Financial income and expenses | 0 | 0
Profit before Appropriations and Taxes | -2 | 4
Appropriations | 5 | -17
Profit before Taxes | 3 | -13
Income tax expense and windfall tax | -1 | 0
Profit / loss for the period | 2 | -13

Electricity business statement of financial position

EUR million | 2023 | 2022
Assets |  |
Non-current assets |  |
Tangible assets | 47 | 53
Investments | 190 | 190
Non-current assets total | 237 | 243
Current assets |  |
Short-term receivables | 24 | 21
Total current assets | 24 | 21
Total assets | 261 | 264
Equity and liabilities |  |
Equity |  |
Share capital | 35 | 35
Share premium | 95 | 95
Invested non-restricted equity fund | 17 | 17
Retained earnings | 39 | 52
Profit for the period | 2 | -13
Total equity | 189 | 186
Accumulated appropriations | 10 | 15
Liabilities |  |
Non-current liabilities | 52 | 56
Current liabilities | 10 | 7
Total liabilities | 62 | 63
Total equity and liabilities | 261 | 264

98
Signatures for the financial statements
There have been no material changes in the Parent Company’s financial position since
31 December 2023. The liquidity of the Parent Company remains good and the proposed
dividend does not risk the solvency of the Company.
31 January 2024

Kari Jordan |  | Håkan Buskhe
Chair |  | Vice Chair
Elisabeth Fleuriot |  | Helena Hedblom
Astrid Hermann |  | Christiane Kuehne
Antti Mäkinen |  | Richard Nilsson
Hans Sohlström |  |
President and CEO |  |

99
Auditor’s Report (Translation of the Finnish Original)
To the Annual General Meeting of Stora Enso Oyj
Report on the Audit of the Financial Statements
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial
position, financial performance and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of Stora Enso Oyj (business identity code 1039050-8)
for the year ended 31 December 2023. The financial statements comprise:
• the consolidated statement of financial position, consolidated income statement, consolidated
statement of comprehensive income, statement of changes in equity, consolidated cash flow
statement and notes to the consolidated financial statements, which include material
accounting policy information and other explanatory information
• the parent company statement of financial position, parent company income statement,
parent company cash flow statement and notes to the parent company financial statements.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland.
Our responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We are independent of the parent company and of the group companies in accordance with
the ethical requirements that are applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that we have provided to
the parent company and group companies are in accordance with the applicable law and
regulations in Finland and we have not provided non-audit services that are prohibited under
Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are
disclosed in note 2.2 to the Consolidated Financial Statements.
Our Audit Approach
Overview

| • We have applied an overall group materiality of EUR 60 million. • We performed audit procedures at 24 reporting components in 11 countries that are considered significant based on our overall risk assessment and materiality. • Valuation of forest assets • Provisions and contingent liabilities • Accounting for business combinations

As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to
obtain reasonable assurance whether the financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
Based on our professional judgment, we determined certain quantitative thresholds for
materiality, including the overall group materiality for the consolidated financial statements as set
out in the table below. These, together with qualitative considerations, helped us to determine
the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate
the effect of misstatements on the financial statements as a whole.
100

Overall group materiality | EUR 60 million
How we determined it | Based on operating profit and total assets
Rationale for the materiality benchmark applied | We chose operating profit and total assets as the benchmarks because, in our view, they are relevant benchmarks against which the performance of the group is commonly measured by users of the financial statements.

How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the group, the accounting
processes and controls, and the industry in which the group operates.
The Group operates through a number of legal entities or other reporting components
globally. We determined the nature, timing and extent of audit work that needed to be performed
at reporting components by us, as the group engagement team, or component auditors
operating under our instruction. Where the work was performed by component auditors, we
issued audit instructions to those auditors including our risk analysis, materiality and global audit
approach. We performed audit procedures at 24 reporting components in 11 countries that are
considered significant based on our overall risk assessment and materiality. We have considered
that the remaining reporting components do not present a reasonable risk of material
misstatement for consolidated financial statements and thus our procedures related to these
reporting components have been limited to analytical procedures performed at group level and
to possible targeted audit procedures over individual significant balances.
By performing the procedures above at reporting components, combined with additional
procedures at the group level, we have obtained sufficient and appropriate evidence regarding
the financial information of the group as a whole to provide a basis for our opinion on
the consolidated financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters consideration of whether there was evidence of bias that
represented a risk of material misstatement due to fraud.

Key audit matter in the audit of the group |  | How our audit addressed the key audit matter
Valuation of forest assets Refer to Note 1.2 and Note 4.2 in the consolidated financial statements for the related disclosures. Forest assets comprise of biological assets and forest land excluding leased forest land assets. As of December 31, 2023 the fair value of the Group’s forest assets owned through subsidiaries, joint operations and associated companies was EUR 8 522 million. The fair value of EUR 6 123 million was related to biological assets and EUR 2 399 million was related to forest land. Forest assets in Sweden and Finland are recognised at fair value and valued by using a market approach method on the basis of the forest market transactions in the areas where Stora Enso’s forests are located. Market prices between areas vary significantly and judgment is applied to define relevant areas for market transactions used in the valuation. Market transaction data is adjusted to consider characteristics and nature of the Group’s forest assets and to exclude certain non- forest assets and transactions considered as outliers compared to other transactions. Biological assets valuation is calculated based on a discounted cash flow (DCF) method in accordance with IAS 41 Agriculture. For forest land the revaluation method is applied as defined in IAS 16 Property, plant and equipment. Forest land is revalued using a DCF method based on estimated future net cash flow streams related to trees to-be-planted in the future as well as other income, such as hunting rights, wind power leases and soil material sales. Total value determined for biological assets and forest land agrees to the market transaction based fair value of forest assets as a discount rate implied by the market transactions is used in the DCF method to value these assets. The value of biological assets outside Sweden and Finland is measured based on fair value less cost to sell. The fair value is determined using a DCF method based on sustainable forest management plans taking into account the growth potential of one cycle. The one cycle varies depending on the geographic location and species. Determining the discounted cash flows require estimates of growth, harvest, sales price and costs. The other European forest lands are revalued by using a DCF method based on its estimated future net cash flows related to trees to-be-planted in the future as well as other non-forest related income. The forest land for the plantations is accounted at cost. Due to the level of judgment involved in the valuation of forest assets as well as the significance of forest assets to the Group's financial position, this is considered to be a key audit matter. |  | We obtained an understanding of management’s forest assets valuation process, evaluated the design and tested the operating effectiveness of internal controls related to directly and indirectly owned forest assets. Our audit procedures over valuation of directly owned forest asset included: • Evaluation of the methodology adopted by management for the valuation; • Testing the mathematical accuracy of the model used for valuation; • Assessment of the discount rates applied in the valuation; • Assessment of the other key valuation assumptions; and • Validation of key inputs and data used in the valuation model including sales price assumptions, growth assumptions and cost assumptions. In addition, specific to the market transaction based valuation our audit procedures included: • Assessment of the definition of relevant areas for market transactions used in the valuation; • Assessment of the adjustments made to the market transaction data; and • Validation of key inputs and data used in the valuation model including market transaction data and volume of standing trees. We involved valuation specialists in the audit work over valuation of directly owned forest assets. Related to indirectly owned forest assets we have communicated with the auditors of the three largest associates and joint operations. As part of the communication, among other things, we have evaluated the audit procedures performed and conclusions reached related to valuation of biological assets. In addition, we assessed the appropriateness of disclosures related to forest assets.

101

Key audit matter in the audit of the group |  | How our audit addressed the key audit matter
Provisions and contingent liabilities Refer to Note 1.2, Note 4.9 and Note 7.1 in the consolidated financial statements for the related disclosures. As of 31 December 2023, the Group had environmental, restructuring and other provisions totaling EUR 168 million. In addition, the Group has disclosed significant open legal cases and other contingent liabilities in Note 7.1. The assessment of the existence of the present legal or constructive obligation, the analysis of the probability of the outflow of future economic benefits, and making a reliable estimate, require management’s judgment to ensure appropriate accounting and disclosures. Due to the level of judgment relating to recognition, valuation and presentation of provisions and contingent liabilities, this is considered to be a key audit matter. |  | We obtained an understanding of management’s process to identify new obligations and changes in existing obligations. We analysed significant changes in material provisions from prior periods and obtained a detailed understanding of these changes and assumptions applied. Our audit procedures related to material provisions recognized included: • Assessment of the recognition criteria for the liability; • Evaluation of the methodology adopted by management for the measurement of the liability; • Testing of the mathematical accuracy of the measurement calculation; • Assessment of the discount rates applied in the measurement; and • Assessment of the other key measurement assumptions and inputs. We reviewed minutes of the meetings of the board of directors and board committees. We assessed the appropriateness of the presentation of the most significant contingent liabilities in the consolidated financial statements.
Accounting for business combinations Refer to Note 6.1 in the consolidated financial statements for the related disclosures. The Group acquired control in De Jong Packaging Group in January, 2023. The acquisition was accounted for as a business combination. The cash purchase consideration was EUR 612 million, excluding a contingent earn-out component with a maximum amount of EUR 45 million which will be settled in cash in 2024 and is subject to De Jong Packaging Group achieving certain earnings thresholds. The contingent consideration is measured at its fair value and is estimated at EUR 0 million at the date of acquisition. The fair value of net assets acquired was estimated to be EUR 265 million. The business combination resulted in recognition of goodwill of EUR 349 million, customer related intangible assets of EUR 167 million and marketing related intangible assets of EUR 39 million. Due to the level of judgment included in accounting for business combinations and the valuation of the net assets acquired, as well as the significance of the business combination to the Group’s financial position this is considered to be a key audit matter. |  | We obtained an understanding of management’s process related to accounting for business combinations and estimating the value of the net assets acquired. Our audit procedures over accounting for business combinations and valuation of net asset acquired included: • Testing the cash purchase consideration; • Evaluation of the methodology adopted by management for the valuation; • Testing the mathematical accuracy of the model used for the valuation; • Assessment of the key valuation assumptions; and • Validation of key inputs and data used in the valuation model. We involved valuation specialists in the audit work over valuation of the net assets acquired. In addition, we assessed the appropriateness of disclosures related to the business combination.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements.

Responsibilities of the Board of Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial statements that give a true and fair
view in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements. The Board of Directors and the
Managing Director are also responsible for such internal control as they determine is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are
responsible for assessing the parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting. The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the group or
to cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with good auditing practice will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
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• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use
of the going concern basis of accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant doubt on
the parent company’s or the group’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the parent company
or the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events so that the financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Other Reporting Requirements
Appointment
We were first appointed as auditors by the annual general meeting on 28 March 2018.
Other Information
The Board of Directors and the Managing Director are responsible for the other information.
The other information comprises the report of the Board of Directors.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. With respect to the report of the Board of Directors, our
responsibility also includes considering whether the report of the Board of Directors has been
prepared in accordance with the applicable laws and regulations.
In our opinion
• the information in the report of the Board of Directors is consistent with the information in
the financial statements
• the report of the Board of Directors has been prepared in accordance with the applicable laws
and regulations.
If, based on the work we have performed, we conclude that there is a material misstatement of
the report of the Board of Directors, we are required to report that fact. We have nothing to
report in this regard.
Other Statements
We support the proposal that the financial statements are adopted. The proposal by the Board of
Directors regarding the distribution of profits is in compliance with the Limited Liability
Companies Act. We support that the Board of Directors and the Managing Director of the parent
company should be discharged from liability for the financial period audited by us.
Helsinki 12 February 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
Samuli Perälä
Authorised Public Accountant (KHT)
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