Stora Enso interim review Q2 2012 presentation published July 20, 2012

1. Financial Results Q2 2012
CEO Jouko Karvinen
20 July 2012

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 Q2 2012 20 July 2012 2

3. Cash flow and liquidity improved
• Operational EBIT EUR 141 million
• Cash flow from operations EUR 246 million
• Strong liquidity at EUR 1 240 million
Financial results Q2 2012 20 July 2012 3

4. Operational EBIT on the similar level as Q1 2012 as
anticipated
Financial results Q2 2012 20 July 2012 4

5. Strategic investments to transform the Group
Financial results Q2 2012 20 July 2012 5

6. 35% personnel increase in growth markets
2007 –H1 2012
Financial results Q2 2012 20 July 2012 6

7. Montes del Plata Pulp Mill
• Montes del Plata pulp mill 1.3
million tonnes annually
• Approximately 60% of the
construction work completed
• Mill expected to start-up
approximately mid-year 2013
Financial results Q2 2012 20 July 2012 7

8. Timing of Strategic Projects
Guangxi,
China
Pulp and Board
mill, start-up
Q4 2014
Montes del Plata,
Ostroleka, Uruguay
Poland Pulp mill, start-up
Container mid-year 2013
Skoghall, board
Sweden machine start-
Investment up
start-up end Q1 2013
Q4 2012
Financial results Q2 2012 20 July 2012 8

9. Summary financials
Q2 2012
Change % Change %
EUR million Q2/2012 Q1/2012 Q2/2011
Q2 12/Q2 11 Q2 12/Q1 12
Sales 2 720.4 2 673.3 2 817.1 -3.4 1.8
Operational EBITDA 248.1 262.1 357.6 -30.6 -5.3
Operational EBIT 141.2 147.4 239.1 -40.9 -4.2
Profit before tax. excl. NRI 31.8 101.0 177.6 -82.1 -68.5
Profit before tax 85.9 89.9 145.9 -41.1 -4.4
EPS excl. NRI (EUR) 0.02 0.10 0.21 -90.5 -80.0
EPS (basic). EUR 0.09 0.09 0.17 -47.1 -
Operational ROCE. % 6.5 6.8 10.9 -40.4 -4.4
Cash flow from operations 245.6 223.7 207.2 18.5 9.8
Cash flow after investing
activities 74.5 111.4 110.8 -32.8 -33.1
Debt/equity 0.54 0.46 0.41 31.7 17.4
Financial results Q2 2012 20 July 2012 9

10. Net Financial Items
Change % Change %
EUR million Q2/2012 Q1/2012 Q2/2011
Q212/Q211 Q212/Q112
Net interest expense -42.0 -37.7 -28.3 -48.4 -11.4
Foreign exchange gains and losses -18.2 8.0 -0.7 n/m n/m
Other financial items. of which -6.6 -4.3 -5.6 -17.9 -53.5
PIK notes 2.5 2.0 1.9
Fair valuation of interest rate derivatives* -14.3 -3.3 -3.3
Fair valuation of long-term debt -0.3 -0.5 0.4
NewPage lease provision 9.5 13.6 -
Other items -4.0 -16.1 -4.6
Total net financial items -66.8 -34.0 -34.6 -93.1 -96.5
*Not hedge accounted interest rate derivatives.
Financial results Q2 2012 20 July 2012 10

11. Operational EBIT by segments
Change % Change %
EUR million Q2/2012 Q1/2012 Q2/2011
Q212/Q211 Q212/Q112
Printing and Reading 41.7 67.3 72.2 -42.2 -38.0
% of sales 3.5 5.5 5.8 -39.7 -36.4
Biomaterials 14.7 7.2 31.2 -52.9 104.2
% of sales 6.0 3.0 11.6 -48.3 100.0
Building and Living 11.5 9.8 35.2 -67.3 17.3
% of sales 2.6 2.6 7.6 -65.8 0.0
Renewable Packaging 72.5 61.7 93.9 -22.8 17.5
% of sales 8.8 7.9 11.3 -22.1 11.4
Other 0.8 1.4 6.6 -87.9 -42.9
% of sales 0.1 0.2 0.9 -88.9 -50.0
Financial results Q2 2012 20 July 2012 11

12. Western European paper* demand 2006 – 2012/May
Seasonally adjusted
* Paper: News, UMO, UMI, SC, CM, WFC & WFU
Source: EuroGraph & PPPC
Financial results Q2 2012 20 July 2012 12

13. Corrugated packaging growth - Eastern Europe and
Asia
CAGR
4.4%
CAGR CAGR
CAGR 1.0% 4.1%
0.5%
Western Eastern
Europe Europe
North
America
CAGR CAGR
2,7 % 4.3%
Asia
2010-2020
Million tonnes
South Middle East &
America Africa
Source: Pöyry and Stora Enso
Financial results Q2 2012 20 July 2012 13

14. Liquid dairy products significant driver for Consumer
Board growth – Asia 7% (CAGR 2010-2020)
Consumption estimate for Liquid Dairy Products
10%
9,0%
9%
8% Total Global LDP
7% average
growth rate:
6%
CAGR 2010 - 2012
2.4%
5%
4%
3,2%
2,8%
3% 2,1%
2% 1,5%1,2%
1%
-0,1% -0,4%-0,3%
-1%
-2%
-3%
-2,8%
-4%
-5%
Volume 57.4 33.7 25.9 22.6 12.8 11 7.7 6.7 5.6 5.1
2012
Bil Litres
Source: Tetra Pak Dairy Index 2009
Financial results Q2 2012 20 July 2012 14

15. Guidance for Q3 2012
• Sales in Q3 2012 roughly similar
level than Q2 2012
• Operational EBIT close to the
similar level or somewhat higher
than in Q2 2012
Financial results Q2 2012 20 July 2012 15

16. Summary
• European paper and wood
products markets continue to
weaken
• Additional cost reductions and
temporary production curtailments
planned in H2 2012
• Strategic investments progressing
to transform the Group
Financial results Q2 2012 20 July 2012 16

17. Financial results Q2 2012 20 July 2012 17

18. Operational EBIT by segments
Change %
EUR million Q2/2012 Q1/2012
Q212/Q112
Printing and Reading 41.7 67.3 -38.0
Biomaterials 14.7 7.2 104.2
Building and Living 11.5 9.8 17.3
Renewable Packaging 72.5 61.7 17.5
Other 0.8 1.4 -42.9
Group 141.2 147.4 -4.2
Financial results Q2 2012 20 July 2012 18

19. Printing and Reading and Renewable Packaging
created the cash flow in Q2 2012
Financial results Q2 2012 20 July 2012 19

20. Transforming the Company
Q1-Q2 2012
Financial results Q2 2012 20 July 2012 20

21. Curtailments increased year-on-year
% of capacity
Financial results Q2 2012 20 July 2012 21

22. Working capital improved
Q2 2010 – Q2 2012
*Operative working capital = trade receivables + inventories – trade payables
Financial results Q2 2012 20 July 2012 22

23. Transaction risk and hedges
as at 30 June 2012
EUR million USD GBP SEK
Estimated annual net operating cash flow exposure 1 200 600 -920
Transaction hedges as at 30 June 2012 -600 -270 450
Hedging percentage as at 30 June 2012 for the next 12 months 50% 45% 49%
Additional USD and GBP hedges for 13-16 months increase the hedging percentages by
4 % and 7 % respectively.
Operational EBIT: Currency strengthening of + 10% EUR million
USD 120
SEK -92
GBP 60
The sensitivity is based on estimated next 12 months net operating cash flow. 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 Q2 2012 20 July 2012 23

24. Softwood pulp prices
Stora Enso’s market pulp is softwood
Source: FOEX
Financial results Q2 2012 20 July 2012 24

25. Pulp wood and saw log prices
Wood prices in Finland
Source: METLA
Financial results Q2 2012 20 July 2012 25

26. RCP prices
German RCP price development. free delivered
Source: Verband Deutscher Papierfabriken/Stora Enso
Financial results Q2 2012 20 July 2012 26

27. Capital expenditure and depreciation
Q1 2008 – Q2 2012
Financial results Q2 2012 20 July 2012 27

28. Debt/equity ratio
2009 – Q2 2012
Financial results Q2 2012 20 July 2012 28

29. Net Debt /Operational EBITDA
Financial results Q2 2012 20 July 2012 29

31. Energy balance* Q2 2012
Total energy self
sufficiency 59%
Self sufficiency 46% Self sufficiency 63%
Impact** on operating profit from
EUR million p.a.
10% change in:
Electricity market price ~11
Fossil fuel price ~17
*) Pulp. paper and board mills. Europe and overseas **) Remaining impact on non-hedged volume
Financial results Q2 2012 20 July 2012 31

32. Stora Enso Electricity procurement* Q2 2012
*) Pulp. paper and board mills. Europe and overseas
Financial results Q2 2012 20 July 2012 32