Results q4 2015 press slides

Financial results
for Q4 and full
year 2015
CEO Karl-Henrik Sundström
CFO Seppo Parvi
4 February 2016
4 February 20161

Stora Enso in brief
• A leading provider of renewable
solutions
• Some 26 000 employees in 35
countries
• Sales in 2015: EUR 10.0 billion
• Operational EBIT EUR 915 million;
2nd year in a row with clear
improvement
• Shares listed on Nasdaq in Helsinki
and Stockholm
2
26 000
35
Stora Enso Q4 and Full Year 2015 Results
4 February 2016

• Sales declined moderately, but increased
excluding declining paper business, divestments
and closure
• Operational EBIT improved clearly due to Montes
del Plata pulp volumes, favourable FX and lower
variable costs
• Cash flow continues strong
− Before investments EUR 412 million
− After investments EUR 75 million despite
peaking investments
• Net debt to operational EBITDA reduced to 2.4
(2.6)
• Annual EPS 1.02 EUR (0.13 EUR) supported by
Bergvik forest valuation gain
4 February 20163
Continued solid performance in Q4
Proposal to increase dividend to 0.33 EUR

Quarterly sales up by 5.4% excluding
paper and divested businesses
4 February 20164
2 552
10 2132 487
1 539
6 147
10 040
1 622
6 428
-2.5%
5.4%
4.6%
-1.7%
Reported group sales, EUR million
Sales excluding paper, Corenso and Barcelona, EUR million

0
100
200
300
400
500
600
700
800
900
1000
Q414 Q415 2014 2015
Operational EBIT increased by 15.8% in
Q4 y-o-y and by 13.0% in 2015 y-o-y
4 February 20165
EUR million
915
810
242
209
15.8%
13.0%

4 February 20166
ROCE reaching new levels
*Excluding Montes del Plata until end of 2014 and excluding Beihai Mill project in Guangxi
ROCE target
of 13%
*Excluding Montes del Plata until end of 2014 and excluding Beihai Mill project in Guangxi

Transformation steps completed
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Montes del Plata pulp mill
- Performed at the nominal capacity level in June
- Annual capacity of 1.3 Mt of which Stora Enso’s share 50%
Murow sawmill
- Started in Q2 2015 as planned.
- Capacity increase to 140 000 m³/shift/year
Sunila Biorefinery
- Investment completed in Q1 2015
- First volumes of lignin are expected to be commercialised in
early 2016
Virdia acquisition
- Acquired in June 2014
- Extraction and separation technologies for conversion of
cellulosic biomass into highly refined sugars and lignin
Imatra de-bottlenecking
- The investment at the Imatra mill in Finland in quality, cost-
competitiveness and an increase in capacity was completed
according to plan.
Varkaus conversion
- The conversion of the fine paper machine to kraftliner is
proceeding and the production started in October
7 4 February 2016

• Non-core asset divestments
− Uetersen Mill Q1 2015
− Barcelona Mill Q4 2015
− Komárom Mill Q3 2015
− Arapoti Mill, closing expected in Q1
2016
• Closures
− Corrugated packaging converting
unit in Chennai, India 2015
− Pälkäne production unit Q2 2015
4 February 20168
Non-core asset divestments and
closures in 2015

Transformation in progress – Beihai Mill
expected to be operational during Q2
Division Investment
Investment
value
To be
completed
Consumer
Board
Beihai consumer
board mill
EUR 800
million
Q2 2016
Wood
Products
Varkaus wooden
building elements
EUR 43
million
Q2 2016
Biomaterials
Xylose
demonstration and
market
development plant
EUR 32
million
Early 2017
4 February 20169

• Co-operation with NXP on intelligent
packaging solutions announced in
Q2 2015
− Customer project ongoing
• Commercial phase for MFC
announced in Q2 2015
− Customer deliveries started
• Innovation Centre for packaging in
Helsinki inaugurated in November
• Innovation Centre for biomaterials in
Stockholm inaugurated in December
4 February 201610
Innovation steps in 2015

Transformation journey continues
Growth businesses with 64% of sales and 83% of operational EBIT
2006 Sales
64%
83%
30%
38%
In 2006, all pulp used internally
Q4/2015 Operational EBIT
Q4/2015 Sales
2006 Operational EBIT
4 February 2016
11

Record high annual Operational EBITDA %
Summary financials Q4 2015 and 2015
4 February 201612
EUR million Q4/15 Q4/14
Change
%
Change
%
2015 2014
Change
Q4/15-
Q4/14 Q3/15
Q4/15-
Q3/15
%
15/14
Sales 2 487 2 552 -2.5% 2 500 -0.5% 10 040 10 213 -1.7%
Operational EBITDA 341 308 10.7% 353 -3.4% 1 352 1 269 6.5%
Operational EBITDA margin 13.7% 12.1% 14.1% 13.5% 12.4%
Operational EBIT 242 209 15.8% 246 -1.6% 915 810 13.0%
Operational EBIT margin 9.7% 8.2% 9.8% 9.1% 7.9%
Profit before tax excl. NRI 610 32 n/m 128 n/m 1 048 399 162.7%
EPS excl. NRI, EUR 0.78 0.06 0.13 1.24 0.40
EPS (basic), EUR 0.53 -0.15 0.16 1.02 0.13
Operational ROCE 11.3% 9.7% 11.6% 10.6% 9.5%
Operational ROCE excl.
Beihai project 13.3% 13.1%* 13.1% 12.2% 12.7%*
Cash Flow from Operations 412 442 -6.8% 484 -14.9% 1 556 1 139 36.6%
Net debt/last 12 months’
operational EBITDA 2.4 2.6 2.5 2.4 2.6
*Excluding Beihai and Montes del Plata investments

Divisional performance Q4 15 / Q4 14
Consumer Board
• Sales +1.1%
• Sales +6.5% excluding the divested Barcelona
Mill
• Operational EBIT EUR 53 million +20.5% driven
by higher deliveries and FX
• Operational ROOC 10.6% (10.0%)
− Excluding Beihai Mill 24.0% (18.7%)
• Beihai Mill operational during Q2
− Costs per quarter EUR 10–15 million during H1
Packaging Solutions
• Sales -8.7% due to the Corenso divestment
• Sales +5% excluding the divested Corenso
− Mainly due to the ramp up of kraftliner
production at Varkaus Mill
• Operational EBIT excluding the impact of the
divested Corenso decreased by EUR 4 million
− Varkaus kraftliner start-up impact of
EUR - 9 million
− Prices higher for containerboard and
corrugated boxes
• Varkaus kraftliner production ramping-up
− Quality good and customer qualification
proceeding according to plan
− Full production expected early 2017
4 February 201613

Biomaterials
• Sales increased by 19.1%
− Higher volumes from Montes del Plata ramp-
up and the positive foreign exchange impact
• Operational EBIT up by 47 MEUR, 138.2%
− Higher hardwood pulp prices, Montes del
Plata volumes, positive FX impact and lower
wood costs for the Nordic mills
Wood Products
• Sales declined 4.8%
− Lower sawn good prices in local currencies,
and lower sales volumes in traditional sawn
goods, compensated by focusing on higher
margin products
• Operational EBIT +110%
− Lower wood costs and positive foreign
exchange impact.
• Recent announcements:
− EUR 16 million investment in pellet
production and in a new boiler at Ala Sawmill
in Sweden
− Pellet production completed by Q2 2017
− New boiler completed by Q4 2016
− EUR 10 million investment in the renewal of
the boiler at Honkalahti Sawmill in Finland
− Boiler renewal completed by Q3 2017
4 February 201614

Paper
• Sales -9.6%
− Due to the disposal of Uetersen Mill and
conversion of Varkaus Mill, lower sales prices
in local currencies
− Excluding divestments, closures and
conversion, volumes remained flat
• Operational EBITDA decreased to EUR 74 million
− Lower sales prices, higher costs for chemical
pulp decrease EBITDA
− Favourable FX improved EBITDA
• Weak cash flow
− Cash payment of EUR 25 million related to
renegotiated long-term supply agreement and
restructuring payments. Seasonally high
CAPEX.
4 February 201615

EPS improved significantly to 1.02
EUR from 2014 to 2015
• Positive impacts:
− Improvement of operational result,
13%
− Bergvik Skog fair valuations of
approximately EUR 430 million on
Q4
− Lower Net Financials and taxes
• Negative impact:
− Q4 non-recurring items with
negative impact of approximately
EUR 250 million
4 February 201616
-0,2
0
0,2
0,4
0,6
0,8
1
1,2
2010 2011 2012 2013 2014 2015
Earnings per share
Earnings per share (basic)

Forecast for capex in 2016
MEUR Forecast 2016
Capital expenditure 680–720
Depreciation 520–540
4 February 201617
The capital expenditure forecast includes approximately EUR 100 million
for group’s biological assets and approximately EUR 160 million for the
Beihai Mill in China.

• Q1/2016 sales are estimated to be
similar to the amount of EUR 2 487
million
• Operational EBIT is expected to be in
line with the EUR 242 million
recorded in Q4/2015
• No major scheduled annual
maintenance shutdowns during
Q1/2016
4 February 201618
Guidance

Dividend proposal
• Dividend policy:
− Strive to pay stable dividends
linked to the long-term performance
− One half of net profits over a
business cycle
• Dividend proposal of 0.33 EUR per
share for 2015 totaling EUR 260
million
4 February 201619
*Dividend proposal

• Solid performance, EBIT increase 15.8%
y-o-y
• Positive annual cash flow of EUR 599
million despite peaking investments in
2015
• CAPEX level going down from EUR 989
million in 2015 to EUR 680–720 million in
2016
• EPS improved significantly
• Dividend increased to 0.33
• Board mill investment in Beihai moving
ahead
• Transformation towards a Renewable
Materials Company continues
4 February 201620
Summary

Results q4 2015 press slides

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