HELSINKI--(BUSINESS WIRE)--Please replace the release issued today at 12.15 GMT with the following corrected version due to multiple revisions. Clarification on the currency impact has been added added to the text.
Stora Enso Oyj (HEX:STEAV) (HEX:STERV) (STO:STEA) (STO:STER) equity accounted investments Tornator Oyj in Finland and Bergvik Skog AB in Sweden increase the IFRS fair value of their biological assets, i.e. growing trees. Stora Enso’s shares of the increases are approximately EUR 87 million for Tornator and approximately SEK 490 million (EUR 50 million) for Bergvik Skog, totalling EUR 137 million, subject to normal year end verification. The change does not impact Stora Enso’s operational EBIT, and it will not be classified as an item affecting comparability (IAC).
Stora Enso’s share of the fair value of the biological assets is expected to be approximately EUR 515 million in Tornator and SEK 22 516 million (EUR 2 282 million) in Bergvik Skog, subject to normal year-end verification and currency movements. In the end of 2015, the respective values were EUR 428 million for Tornator and EUR 2 397 million for Bergvik Skog. The impact on Stora Enso’s IFRS Total Comprehensive Income in 2016 will be approximately EUR 27 million negative, including a translation loss of EUR 164 million subject to year-end currency movements and deferred tax.
The change in Tornator’s fair value is due to an increase in felling plan and a decrease in the discount rate. As for Bergvik Skog, the change is due to a decrease in discount rate, an adjustment to the price curve, and a correction in the model from last year.
Stora Enso’s shareholding in Tornator Oyj is 41% and in Bergvik Skog AB 49%.
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com
STORA ENSO OYJ
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