UBS Global Basic Materials Conference in London. Presentation by CEO Jouko Karvinen. (8 June 2011)

1. rethink.
rethink Stora Enso
CEO Jouko Karvinen

2. 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 t
limitation those regarding expectations for market growth and developments; expectations for growth
and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar
expressions, are forward-looking statements within the meaning of the United States Private Securities
Litigation R f
Liti 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 d
projections, they involve risks and uncertainties which may cause actual results to materially differ from
those 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 of
efficiencies 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 i
by 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 protection
created by the Group’s patents and other intellectual property rights, the availability of capital on
acceptable 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 the
Group, 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

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

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

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

6. Proof points of action
p
Our 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

7. Implementing strategy
p g gy
High 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

8. rethink. Materials
Source 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

9. 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

10. 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

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

12. This is not about reading newspapers on tablets but
how 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 traffic
80%
– 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

13. Productivity – 40% improvement in 6 years
y p y
Rethinking 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

14. Rethinking continues!