Stora Enso's Capital Markets Day on 22 March 2012

1. Growth
Engine
Juan Bueno, EVP, Biomaterials

2. Biomaterials
Juan Bueno March 22, 2012 2

3. Why?
Juan Bueno March 22, 2012 3

4. Population Growth
Growing Environmental Pressures
Doing more with less
Juan Bueno March 22, 2012 4

5. Sustainability
5

6. Pulp market outlook
Juan Bueno March 22, 2012 6

7. Global Market Pulp demand by end use: 46mt
Source: Hawkins Wright, 2010 figures
Juan Bueno March 22, 2012 7

8. What does that mean in terms of market pulp?
2
8 9
63
2
15
46
7 9
63
46
2010 Paper US- Paper Tissue Packaging Fluff Integrated 2025
WE-JP Growth Capacity
Countries
Juan Bueno March 22, 2012 8

9. Ok. Tissue is growing. But where?
Forecast tissue demand (M Tons)
Juan Bueno March 22, 2012 9

10. While online advertising in China is growing, there is still
room for growth in all types of media, including commercial
print
Advertising revenue is
~450€/capita in US
~75% of total population
A large growth potential remains for advertising spend,
including direct mail
Juan Bueno March 22, 2012 10

11. Paper consumption clearly declining in Western
Europe and North America, but what about China?
China household
broadband penetration
Some growth expected,
but China will leapfrog
to Digital Life.
Juan Bueno March 22, 2012 11

12. Strongest growth in demand of fibre-based
consumer board will be in Asia
CAGR CAGR
CAGR 1.4 % 4.6 %
0.2 % CAGR
6.9 %
Western Eastern
Europe Europe
North CAGR
America 3.3 %
CAGR
3.5 %
2010-2020 Middle East & Asia
Million tonnes Africa
South Fibre-based CAGR
consumer board
America consumption
China 9%
Source: China Ministry Of Industry
Pakistan 9% and Information Technology;
India 6% Chinese Telecom company
publications; PwC ; Bain analysis
Middle East 4%
Juan Bueno March 22, 2012 12

13. Go where the growth is
Juan Bueno March 22, 2012 13

14. BA Biomaterials
Juan Bueno March 22, 2012 14

15. BA Biomaterials
Skutskär
BA Biomaterials Capacities Ktons
Sunila 370 Enocell
Enocel 480 Oulu
Skutskär 540
Total Own Mills 1,390 Kaukopää
Nymölla
Veracel 550
Montes del Plata * 650
Total with JV's 2,590 Sunila
* start up in 2013
50% Stand alone mills
Veracel
Integrated mills with dried pulp
50% Montes
del Plata -
2013
Juan Bueno March 22, 2012 15

16. Total Chemical Pulp Balance at Stora Enso
220 3 430
4 385 100 Softwood
120
Hardwood
1 655 Fluff
Dissolving pulp
2 340
MdP = + 55%
Market Pulp
1 775
260 1 825
80
650 785
1 175
1 705 260
785 80
260 700
50 80
Dried and External Internal Market MdP Market Pulp
wet pulp Purchases Consumption pulp incl MdP
production
Juan Bueno March 22, 2012 16

17. BA Biomaterials compared with competition
EBIT % (quarterly Ebit)
60%
50%
40%
30%
20%
10%
0%
-10%
Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11
Stora Enso
Source: Quarterly financial reports
Juan Bueno March 22, 2012 17

18. BA Biomaterials capacity cost competitiveness
BSKP All Dried BHKP All Dried (incl. MdP)
EUR/tEUR/t Costs delivered to Frankfurt Costs delivered to Frankfurt
EUR/t
BA Biomaterials capacity - % in each quartile BA Biomaterials capacity - % in each quartile
2nd 3rd 1st 4th
quartile quartile quartile quartile
79% 21% 77% 23%
BSKP: Stable position since cost curve not likely to change significantly.
BHKP: Cost curve will flatten and we are driving ourselves into a strong position.
For the 4th quartile mills, we are looking into other products (I.e Dissolving, Fluff etc.)
Source: Poyry and Stora Enso Experts
Juan Bueno March 22, 2012 18

19. Montes del Plata Pulp Mill
1.3 M Tons of BHKP
1.4 B euro Investment
Juan Bueno March 22, 2012 19

20. Top 20 market pulp producers
Fibria
April
Arauco
Georgia Pacific
CMPC
Sodra
Stora Enso
Weyenhaeuser
Mdp
Suzano BSKP
Botnia/M-Real UKP
Paper Excellence
UPM-Kymmene MEC
Domtar BHKP
Ilim
Mercer
IP
Ence
West Fraser
Canfor
Cenibra
- 1 000 2 000 3 000 4 000 5 000 6 000
Source: Hawkins Wright
Juan Bueno March 22, 2012 20

21. How do we win
Juan Bueno March 22, 2012 21

22. Innovation
Customer Financial
Discipline and
Focus Growth

23. Innovation
Increase value added to current process
BIOREFINERY
Tall Oil Turpentine
Bio-Methanol Lignoboost

24. Innovation
Explore new markets
MFC
RESEARCH
& Bio-Tech
DEVELOPMENT Carbon Fibre

25. Customer Focus
Promoters
Neutrals
Detractors
Stora Enso
Other key supplier
Juan Bueno March 22, 2012 25

26. Financial Discipline Our Cash Engines
Enocell Sunila Skutskär
Maximize results with cash engines (Nordic Pulp mills)
• Operational efficiency.
• Add value through by products (talloil, Lignoboost etc.)
• Improve energy efficiency.
• Lean and focused capital expenditure model.
• Optimal working capital management.
• Adjust product mix as there is fit (Dissolving Pulp, Fluff).
Juan Bueno March 22, 2012 26

27. Financial Discipline Our Growth Engines
Existing Plantations Value Adding
Montes del Plata
Projects Partnerships
Sustainable growth
• Environmental & Social responsibility
• Certified plantations
• Time to market
• Low production cost : only 1st quartile interests us
• Close to growing markets is key
• Value added partnerships
Juan Bueno March 22, 2012 27

28. Biomaterials offers an attractive growth platform
• Short term with a state of the art pulp mill in Uruguay
• Medium term with pulp from Tiger
• Long term via strong focus on innovation, new technologies
development and strategic partnerships. Option to do Veracel II
• Strong customer focus
• Strong financial discipline balancing cash engines that can
help fund profitable growth opportunities
• Clear respect for the highest sustainability standards
Juan Bueno March 22, 2012 28

29. Biomaterials
Juan Bueno March 22, 2012 29

30. Juan Bueno March 22, 2012 30

31. It should be noted that certain statements herein which are not historical facts. including. without 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 Reform Act of 1995.
Since these statements are based on current plans. estimates and 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 therein. continued success of product
development. acceptance of new products or services 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) industry conditions. such as strength of product demand. intensity
of 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 markets or
fluctuations in exchange and interest rates.
Juan Bueno March 22, 2012 31