Frequently asked questions and answers about Financial Statements Review 2013

Why did the EBITA decrease so much in Q4?

EBITA decreased, mainly because of a delay linked to an individual, major pulp project delivery and the project’s higher-than-estimated costs (about EUR 30 million). Capacity utilization in the Board and Paper, and Energy business units was also low.

Are there some additional costs coming in 2014 related to that pulp mill delivery?

EUR 30 million is currently our best estimate, and that was fully booked in Q4 of 2013.

Is the capital business loss-making?

The profitability in capital businesses was weak in 2013 and declined from 2012.

What are the one-offs?

• Q4: Non-recurring items related to the profitability improvement program amounted to EUR 30 million (EUR 24 million) and expenses related to the demerger totaled EUR 5 million.
• 2013: Non-recurring items related to the profitability improvement program amounted to EUR 76 million (EUR 24 million) and those related to the demerger totaled EUR 10 million.

Are further cost cuts needed?

We have the possibility for temporary lay-offs in Finland if needed.

How much of the EUR 100 million cost savings will be seen in Q1/H1/H2?

We expect to see cost savings of EUR 100 million by the end of 2014, no guidance for Q1/H1/H2.

Why did you upgrade the outlook for Energy, and Board and Paper?

Market activity in both business units has improved. We have also cut our own capacity, and the short-term outlook reflects also our own capacity utilization.

The short-term outlook is for the next 6 months.

In which business lines do you expect EBITA to increase?

As the profitability is weak in capital businesses, it is important to increase the profitability in these businesses.