Stora Enso Capital Markets Day on 22 March 2012

1. Cash Engine
Juha Vanhainen, EVP, Printing and Reading

2. Business Area Printing & Reading
Publishing
and
commercial
printing
We inspire
the world with
paper
Juha Vanhainen March 22, 2012 2

3. iPad’s take-off has been a great success
Apple iPhone +
iTouch
Apple iPad
Nintendo Wii
Nintendo DS
Sony PSP
Apple iPod
RIM Blackberry
Source: KPCB; Apple; Morgan Stanley
Juha Vanhainen March 22, 2012 3

4. West European advertising spend is still
at the pre-crisis level
(calculated in 2010 euro)
100
90
8 10
80 12
Internet
AdSpend [ billiion € ]
70 13 14 15
Other
60
Radio
50 28 28 27
40 24 25 25 TV
30
20
43 42 39 32 31 30 Print
10
0
2006 2007 2008 2009 2010 2011e
Source: Zenith Dec-2011
Juha Vanhainen March 22, 2012 4

5. The development has caused a structural change to
West Europe paper demand development
Juha Vanhainen March 22, 2012 5

6. Business Area Printing and Reading
Production capacities, million t/a
Newsprint
• Newsprint 2.5 SC
Veitsiluoto
• Super calendered 1.4 Oulu Coated
• Coated paper 3.0 Office
Varkaus
• Office paper 1.3 Kvarnsveden Anjala
Total paper 8.2
Hylte
Nymölla
Kabel Uetersen
Langerbrugge
Corbehem Sachsen
Maxau Dawang
Suzhou
Arapoti
Juha Vanhainen March 22, 2012 6

7. BA Printing and Reading sales and EBITDA
Juha Vanhainen March 22, 2012 7

8. BA Printing & Reading profits are better than the
ones of main competitors, EBITDA-%
(sliding average of latest four quarters)
Strora Enso purchased pulp at market price;
energy procurement at market conditions
Juha Vanhainen March 22, 2012 8

9. BA Printing and Reading will improve cost position to
keep average below median at all times
Delivered cash cost to Frankfurt
Cost index, 100 equals to median of each grade
180
160
140
BA will target at keeping the average cost level
120 below median at all times
100
BA Printing and Reading capacity-% in each quartile:
80
1st quartile 2nd quartile 3rd quartile 4th quartile
35% 30% 30% 5%
60
0 10000 20000 30000 40000 50000
Cumulative European paper capacity, 1000 t/a Source: Pöyry, Stora Enso
excluding specialties & book
Q4/2011
Juha Vanhainen March 22, 2012 9

10. Concept for winning in a declining market
Input
Focus on Not growth,
end-uses but low-cost
• Paper for all print • Delivered cost
end-uses
• Targeted investments
• New products
expanding offering • Energy efficiency and
bio fuels
• Supply chain
efficiency priority • Asset restructuring
Action
Juha Vanhainen March 22, 2012 10

11. Our value proposition to our customers
Your peace of mind comes first
• from sourcing raw materials to creating
renewable reading experiences
Added value to customers
• Reliability and availability
• Cost efficiency
• Good reputation
• Offering fit for purpose
Juha Vanhainen March 22, 2012 11

12. We inspire the world with paper
From selling paper grades to jointly selecting
best paper for end-use applications
Juha Vanhainen March 22, 2012 12

13. Product development – reinventing boundaries
between paper grades
PrimaPress – an uncoated paper for
traditional end-uses of coated paper
• Brilliant gloss never seen before for LWU
• End uses: magazines, catalogues
• Production: Kvarnsveden PM12
Juha Vanhainen March 22, 2012 13

14. BA Printing and Reading
– 2011 Net Promoter Score
Compared to most frequently mentioned competitors
BA Printing & Reading n=1384;
All competitors n=1297
Juha Vanhainen March 22, 2012 14

15. Concept for winning in a declining market
Input
Focus on Not growth,
end-uses but low-cost
• Paper for all print • Delivered cost
end-uses
• Targeted investments
• New products
expanding offering • Energy efficiency and
bio fuels
• Supply chain
efficiency priority • Asset restructuring
Action
Juha Vanhainen March 22, 2012 15

16. Juha Vanhainen March 22, 2012 16

17. Ongoing restructuring measures
Fine paper cost competitiveness improvement
• Annual cost reduction 20 M€
• Cash provision 16 M€
• Full impact after Q2/2012
Coated magazine paper operations’ restructuring
• Annual cost reduction 48 M€
• Investments 18 M€ and cash provision 5 M€
• Full impact from Q3/2013 onwards
Juha Vanhainen March 22, 2012 17

18. Sales value per employee
Juha Vanhainen March 22, 2012 18

19. Juha Vanhainen March 22, 2012 19

20. Printing & Reading operational
development targets
Product development
• New products
• Cost structure improvement
• Source reduction
From mill specialization
to operational flexibility
• “Lowest delivered to customer cost asset
gets the orders”
Juha Vanhainen March 22, 2012 20

21. Lean and focused capital expenditure model
Top assets with low cost;
Capex of sales efficiency and energy
investments
Assets to be kept on
current technical
level
Average at
~2.5% of sales
Assets for divestment
or closure during the
next 10 years
Competitiveness
Juha Vanhainen March 22, 2012 21

22. Energy investments
Energy efficiency
• Energy generation towards bio
• Latest 5 year investments 300 M€
• Specific energy consumption
improvement work continues
Juha Vanhainen March 22, 2012 22

23. Located in a seaport
Oulu paper mill is the largest coated paper
production unit in Europe
Integrated
Benchmark paper quality
Juha Vanhainen March 22, 2012 23

24. Kvarnsveden PM12 in Sweden
Wood procurement from
an area with 200 km radius
Juha Vanhainen March 22, 2012 24

25. 80 million people live
within a 300 km radius Excellent energy solution
based on non-fossil/renewable
Langerbrugge houses the largest
Amsterdam
newsprint paper machine in Europe
London Düsseldorf
Langerbrugge Cologne
Paris
100% recycled fiber
Juha Vanhainen March 22, 2012 25

26. Ready for all future demand scenarios
• New setup with all paper business in one
business area
• Serving consumers’ continuously developing media
needs with new paper applications
• Performance over size and market share
• Focus on making top assets even stronger
Juha Vanhainen March 22, 2012 26

27. Juha Vanhainen March 22, 2012 27

28. 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.
Juha Vanhainen March 22, 2012 28