UBS Global Basic Materials Conference in London. Presentation by CEO Jouko Karvinen.

rethink.rethink Stora EnsoCEO Jouko Karvinen

It should b noted th t certain statements h i which are not hi t i l f t i l di h ld be t d that t i t t t herein hi h t historical facts, including, without ith tlimitation those regarding expectations for market growth and developments; expectations for growthand profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similarexpressions, are forward-looking statements within the meaning of the United States Private SecuritiesLitigation R fLiti ti Reform A t of 1995 Si Act f 1995. Since th these statements are b t t t based on current plans, estimates and d t l ti t dprojections, they involve risks and uncertainties which may cause actual results to materially differ fromthose expressed in such forward-looking statements. Such factors include, but are not limited to: (1)operating factors such as continued success of manufacturing activities and the achievement ofefficiencies th i continued success of product d ffi i i therein, ti d f d t development, acceptance of new products or services l t t f d t iby the Group’s targeted customers, success of the existing and future collaboration arrangements,changes in business strategy or development plans or targets, changes in the degree of protectioncreated by the Group’s patents and other intellectual property rights, the availability of capital onacceptable terms (2) ind str conditions s ch as strength of prod ct demand intensit of competition terms; industry conditions, such product demand, intensity competition,prevailing and future global market prices for the Group’s products and the pricing pressures thereto,price fluctuations in raw materials, financial condition of the customers and the competitors of theGroup, the potential introduction of competing products and technologies by competitors; and (3)general economic conditions such as rates of economic growth in the Group’s principal geographic conditions,markets or fluctuations in exchange and interest rates. rethink. Stora Enso 8 June 2011 2

Stora Enso – sustainable competitive differentiation sustainable, rethink. Stora Enso 8 June 2011 3

rethink business rethink innovation rethink customer service rethink our attitude rethink products rethink processes rethink materials thi k t i l rethink the futurerethink. Stora Enso 8 June 2011 4

World needs a new approach to materials rethink. Stora Enso 8 June 2011 Source: www.cartonawards.com 5

Proof points of action pOur direction• Growth markets G th k t • Growth markets Proof points: • Inpac acquisition • •Plantation based pulp Plantation-based d iinvestment Ostroleka O t l k containerboard t i b t t • Investment to Montes del Plata• • Plantation-based pulp Fibre-based packaging Proof point: P f i t • Investment to Montes del Plata • Selected paper grades• Fibre-based packaging Maintain and develop global leadership position Proof points: • Inpac acquisition • Ostroleka containerboard investment• Selected paper grades 8 June 2011 6

Implementing strategy p g gyHigh return growth businesses Project oject O ta get Ot e p og ess On target Other progress Montes del Plata Machinery and port pulp mill, Uruguay suppliers selected and contracted for MdP Ostroleka Proceeding as planned containerboard machine, Poland CLT All permits received, main investment, Ybbs, Austria machine supplier selected Skoghall Support wood handling in investment Sweden and further develop Skoghall mill Inpac Integration planning strong packaging company in China and India 7

rethink. MaterialsSource reduction! Bio polymers! Index 1970 = 100 Calculated on wood consumption 200 190 ount of blanks per tree 180 170 s 160 150 Relative amo 140 130 R 120 110 100 1970 1977 1994 1998 2002 2005 2008 2011 rethink. Stora Enso 8 June 2011 8

Groundbreaking investment in nanotechnology• First Fi production line i the world d i li in h ld – Microfibrillated cellulose (MFC)• Full capacity end of 2011 – enable 100 000 tonnes of board• 10 MEUR technology project• More with less – Lighter and stronger material for f paper and packaging d k i – Less raw material need – Lower logistic costs 9

Wood has a good story to tell• Superior carbon footprint compared to any other building material• Joint efforts as an industry to remove all norms and standards that are unjustly discriminating against wood in various end-uses 1000 500 0 Steel frame Light weight Aircrete block Brick Concrete Wood g/kg g concrete block t bl k -500 -1000 Carbon sink, g/kg C b i k /k -1500 CO2 emissions of manufacturing, g/kg -2000 Source: Puuinfo / Finnish Forest Industries rethink. Stora Enso 8 June 2011 10

Mobile ecosystems – accelerating impact ? And iPod with iTunes ”killed” the music industry ? rethink. Stora Enso 8 June 2011 11

This is not about reading newspapers on tablets buthow the consumers spend their time ? Social media adopted faster than • F Facebook b k any other device / media – 3rd largest population after China and India% of U S population using t h l f U.S. l ti i technology/service / i – Half of UK mobile web traffic80% – Fastest growing segment 55-65 year old f ld females l 60 DVD Player Television – 1 out of 8 US couples married met Facebook Radio on it 40 Youtube • Let’s ask the people driving this change! 20 Cellphone PC – N the ones who are afraid of i Not h h f id f it (and tell us what we want to hear) Telephone 0 0 5 10 Years after product launch rethink. Stora Enso 8 June 2011 12

Productivity – 40% improvement in 6 years y p yRethinking productivity FTE per 1 m€ Sales* 4,0 3.8 3 8 employees needed to create EUR 1 million of sales in 2005 3,8 3,6 2.7 employees needed to create 3,4 EUR 1 million of sales in 2010 FTE’s 3,2 3,0 2,8 28 2,6 2,4 2,2 2,0 2005 2006 2007 2008 2009 2010 *continued operations excl Merchants and North America, 2005 adjusted for FIN strike impact rethink. Stora Enso 8 June 2011 13

Rethinking continues!

UBS Global Basic Materials Conference in London. Presentation by CEO Jouko Karvinen.

by Stora Enso

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UBS Global Basic Materials Conference in London. Presentation by CEO Jouko Karvinen. Presentation Transcript