- Sales and earnings more than doubled in Q1 2011 compared to Q1 2010, with sales up 19% and operating profit excluding items up 108%. - Higher prices and continued productivity improvements drove earnings growth. However, inflation increased costs and limited further earnings growth. - The company will continue efforts to fight inflation, which is estimated to increase costs by 4% for the full year 2011 compared to 2010.

1. Financial results Q1 2011
20 April 2011

2. 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.
Financial results Q1 2011 20 April 2011 2

3. Q1 2011 Strong – Earnings more than doubled
Sales up 19%
EBIT excl NRI and fair valuations up 108%
EPS excl NRI up 47%
Q1 2011 compared to Q1 2010
Financial results Q1 2011 20 April 2011 3

4. Earnings improving
Higher prices and continued productivity improvement
EBIT excl NRI and fair valuation EBIT margin*, % 4 Q avg
300 10 %
240 8%
EUR million
180 6%
120 4%
60 2%
0 0%
*excluding NRI and fair valuation
Financial results Q1 2011 20 April 2011 4

5. Increased productivity
Pricing over volumes, managing assets
120 000
100 000
EUR
80 000
Sales per employee
60 000
40 000
07Q1 08Q1 09Q1 10Q1 11Q1
Financial results Q1 2011 20 April 2011 5

6. RCP continued to drive inflation
200
160
EUR/tonne
120 Mixed
OCC
80
De-inking
40
0
German RCP price development, free delivered
Source: Verband Deutscher Papierfabriken/Stora Enso
Financial results Q1 2011 20 April 2011 6

7. Higher pulp prices positive
Due to 1 mill. tonnes net market pulp position
1 200
1 000
800
USD/tonne
600 Bleached softwood kraft pulp
Bleached hardwood kraft pulp
400
200
0
Source: FOEX
Financial results Q1 2011 20 April 2011 7

8. Summary financials Q1 2011
Change % Change %
EUR million I/2011 IV/2010 I/2010
Q111/Q110 Q111/Q410
Sales 2 727 2 685 2 296 18.8 1.6
EBITDA, excl. NRI and fair valuations 368 289 232 58.6 27.3
Operating profit, excl. NRI and fair valuations 248 167 119 108.4 48.5
Profit before tax, excl. NRI 213 187 137 55.5 13.9
Earnings per share, excl. NRI (EUR) 0.22 0.19 0.15 46.7 15.8
ROCE, excl. NRI and fair valuations (%) 11.4 7.9 7.2 58.3 44.3
Cash flow from operations 163 265 119 37.0 -38.5
Cash flow after investing activities 106 126 6 n/m -15.9
Debt/equity 0.38 0.39 0.54 -29.6 -2.6
NRI = Non-recurring items
Fair valuations include equity incentive schemes, synthetic options net of realised and open hedges,
CO2 emission rights, and valuations of biological assets related to forest assets in equity accounted investments
Financial results Q1 2011 20 April 2011 8

9. Net debt down 15% y-o-y
Net Debt Net Debt/EBITDA excl NRI and fair valuations
5 000 6,0
4 500 5,0
4 000 4,0
EUR million
3 500 3,0
3 000 2,0
2 500 1,0
2 000 0,0
SENA divestment closed in Q4 2007 EBITDA: Continuing operations
Merchants divestment closed in Q2 2008 Net debt: Total operations
Financial results Q1 2011 20 April 2011 9

10. Strong pricing improvement, inflation unfavourable
450
+26
400 +257
350
300
+1 +248
250 -130
-13 -12
200
150 +119
100
50
0
Q110 Sales price Volume Costs FX net Equity acc Other Q111
& Mix investments
Change in operating profit excl. NRI and fair valuations
Q1 2010 – Q1 2011
Financial results Q1 2011 20 April 2011 10

11. Only European board demand above pre-crisis level
Folding boxboard Std Newsprint Uncoated magazine Coated fine paper
115
2007 Q avg = 100
100
INDEX
85
70
European demand
Source: CEPIPRINT, PPPC, CEPIFINE
Financial results Q1 2011 20 April 2011 11

12. Implementing strategy
High return growth businesses
Project 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

13. Outlook - increasing concerns on cost inflation
• Inflation and maintenance limit Q2 Demand Price
earnings improvement y-o-y development development
Q2/11 vs Q2/11 vs
Q2/10 Q1/11
• Inflation estimate increased to
Consumer Board
~4% for the full year 2011
compared to 2010
Industrial
Packaging
• Actions to fight inflation continue Newsprint and
Book Paper
to be even more important
Coated
Magazine Paper
Uncoated
Magazine Paper
Fine Paper
Wood Products
Financial results Q1 2011 20 April 2011 13

14. Summary
• Strong quarter
• Inflation pressure
• 80% of CAPEX for strategic high
return growth areas in 2011
• Investments in strategic high-
return growth areas
– Montes del Plata
– Ostroleka
– Ybbs
– Skoghall
Financial results Q1 2011 20 April 2011 14

15. Rethinking continues!

16. Financial results Q1 2011 20 April 2011 16

17. Operating profit by segments
Change % Change %
EUR million I/2011 IV/2010 I/2010
Q111/Q110 Q111/Q410
Consumer Board 96 52 71 35.2 84.6
% of sales 14.8 8.5 13.6 8.8 74.1
Industrial Packaging 19 22 8 137.5 -13.6
% of sales 8.0 9.1 3.6 122.2 -12.1
Newsprint and Book Paper 26 -3 -2 n/m n/m
% of sales 8.3 -0.8 -0.7 n/m n/m
Magazine Paper 28 20 4 n/m 40.0
% of sales 5.9 3.6 0.9 n/m 63.9
Fine Paper 80 68 42 90.5 17.6
% of sales 14.2 12.7 8.9 59.6 11.8
Wood Products 12 10 5 140.0 20.0
% of sales 2.9 2.5 1.5 93.3 16.0
excluding non-recurring items
Financial results Q1 2011 20 April 2011 17

18. Capital expenditure and depreciation
Q1 2008 – Q1 2011
250 10 %
Forecast:
Capex FY 2011
200 approximately 8%
EUR 550 m
EUR million
150 6%
100 4%
50 2%
0 0%
Capex Depreciation and impairment excl NRI Capex % of sales
Total operations
Financial results Q1 2011 20 April 2011 18

19. Operative working capital
Q1 2008 – Q1 2011
2 800 28,0 %
2 600 26,0 %
2 400 24,0 %
2 200 22,0 %
EUR million
2 000 20,0 %
1 800 18,0 %
1 600 16,0 %
1 400 14,0 %
1 200 12,0 %
1 000 10,0 %
08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3 09Q4 10Q1 10Q2 10Q3 10Q4 11Q1
Operative Working Capital at the end of Q Working Capital per Sales ratio
Operative W/Cap = inventories + trade receivables – trade payables
Financial results Q1 2011 20 April 2011 19

20. Debt/equity
2005 – Q1 2011
0,9
0,8
0,70
0,7
0,6 0,56
0,54
0,51
0,5
0,39 0,39 0,38
0,4
0,3
0,2
0,1
0
2005 2006 2007 2008 2009 2010 Q1 2011
Total operations
Financial results Q1 2011 20 April 2011 20

21. Pressure on variable costs
Wood pricing in Finland and in Sweden
80 600
70
500
60
400
50
EUR/m 3
SEK/m 3
40 300
30
200
20
100
10
0 0
06Q1
06Q2
06Q3
06Q4
07Q1
07Q2
07Q3
07Q4
08Q1
08Q2
08Q3
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
06Q1
06Q2
06Q3
06Q4
07Q1
07Q2
07Q3
07Q4
08Q1
08Q2
08Q3
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
Pulpwood, Pine Sawlogs, Pine Pulpwood Sawlogs
Source: METLA Pulpwood includes pine, spruce and birch.
Sawlogs include pine and spruce.
Source: SDC, Skogsstyrelsen
Financial results Q1 2011 20 April 2011 21

22. Net Financial Items
Change % Change %
EUR million I/2011 IV/2010 I/2010
Q111/Q110 Q111/Q410
Net interest expense -23.0 -25.6 -16.5 -39.4 10.2
Foreign exchange gains and losses -11.9 1.8 11.1 n/a n/a
Other financial items, of which -16.3 2.1 -0.1 n/m n/a
PIK notes 1.5 1.6 1.4
Fair valuation of interest rate derivates* 13.9 4.4 -0.7
Fair valuation of long-term debt -0.5 0.1 0.1
Other items -31.2 -4.0 -0.9
Total net financial items -51.2 -21.7 -5.5 n/m -135.9
*Not hedge accounted interest rate derivatives.
Financial results Q1 2011 20 April 2011 22

23. Transaction risk and hedges
as at 31 March 2011
EUR million USD GBP SEK
Estimated annual net operating cash flow exposure 1 080 580 -1 100
Transaction hedges as at 31 March 2011 -510 -250 590
Hedging percentage as at 31 March 2011 for the next 12 months 47% 43% 54%
Operating Profit: Currency strengthening of + 10%
Based on estimated next 12 months net operating EUR million
cash flow exposure.
USD 108
SEK -110
GBP 58
The calculation does not take into account currency hedges, and assumes no changes occur other
than a single currency exchange rate movement. Weakening would have the opposite impact.
Financial results Q1 2011 20 April 2011 23

24. Maturity profile
31 March 2011
1 000 SEK 500m 3.5% 2015
SEK 1.4 bn S+3.7% 2015
900 SEK 2.4 bn 5.75% 2015
800
EUR 750m 5.125% 2014
700
EUR million
600 EUR 390m E+4.21% 2016
USD 507m 6.404% 2016
500
Other loans/liabilities
400
USD 300m 7.25% 2036 Bonds
300
Commercial paper
200
100
0
Revolving Credit Facility € 700 million matures in January 2014 and is fully undrawn.
Financial results Q1 2011 20 April 2011 24

25. Energy balance Q1 2011
TWh/a
Self sufficiency 62%
50 Total energy self
40 sufficiency 60% Impact* on operating
profit from 10% change EUR million p.a.
30
Self sufficiency 54% in:
20
10 Electricity market price ~6
0
Fossil fuel price ~11
-10 Electricity Fuels
*) Remaining impact on non-hedged volume
Internal External (hedged) External (non-hedged)
Financial results Q1 2011 20 April 2011 25

26. Stora Enso electricity procurement
GWh/a
20 000
18 000
16 000
Sales to market
14 000
Open position
12 000
Local tariff
10 000 Financial contracts
8 000 Physical contracts
6 000 PVO production
4 000 Own production
2 000
0
-2 000
2011 2012 2013 2014
Financial results Q1 2011 20 April 2011 26

27. Permanent pulp, paper and board capacity reductions
since 2006
Mill Date Grade Capacity reduction, t
Corbehem PM 3 and PM 4 Jun 2006 LWC 250 000
Varkaus PM 1 End 2006 WFC 95 000
Berghuizer Mill Oct 2007 WFU 235 000
Reisholz Mill End 2007 SC 215 000
Summa Mill Jan 2008 Newsprint, uncoated mag, book paper 415 000
Anjala Mill PM1 Feb 2008 Coated magazine paper 155 000
Baienfurt Mill End 2008 FBB 190 000
Kabel Mill PM 3 End 2008 Coated magazine 140 000
Kemijärvi Pulp Mill April 2008 Long-fibre (SW) pulp 250 000
Norrsundet Pulp Mill Dec 2008 Long-fibre (SW), pulp 300 000
Varkaus Mill coreboard machine Dec 2008 Coreboard 100 000
Imatra PM 8 Mar 2010 WFU 210 000
Varkaus PM 2 and PM 4 Sep 2010 Newsprint, directory paper 290 000
Maxau PM 7 Nov 2010 Newsprint 195 000
Totals % of capacity as at end 2005
(adjusted for disposals)
Paper and board 2 490 000 t/a 15%
Pulp 550 000 t/a 9%
Financial results Q1 2011 20 April 2011 27

28. Permanent sawn wood capacity reductions
since 2006
Mill Date Capacity reduction, m3
Veitsiluoto Sawmill 2006 100 000
Honkalahti Sawmill 2006 90 000
Sauga Sawmill Jun 2007 130 000
Sollenau Sawmill 2007 110 000
Näpi Sawmill 2007-2008 100 000
Kotka Sawmill 2007-2008 70 000
Paikuse Sawmill End 2008 220 000
Zdirec Sawmill 2008 120 000
Ybbs Sawmill 2008 & Jun 2009 200 000
Kitee Sawmill 2008 & Jun 2009 130 000
Varkaus Sawmill Jun 2009 60 000
Tolkkinen Sawmill End 2009 260 000
Total 1 590 000
Reductions equal 20% of capacity as at end 2005 (adjusted for disposals)
Financial results Q1 2011 20 April 2011 28