Jump the CurveJouko Karvinen

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.

Q3 2011

Scorecard Q3 2011 Q3 2010

EBIT excl. one times €204m €255m

Cash after CAPEX €282m €230m

Liquidity €1,181m €1,121m

Scorecard Q3 2011 Q3 2010

Working capital % 19% 17%

Personnel 28 771 27 785

Debt to equity 0.45 0.43

Outlook

• Production curtailments increased in Q3

• will continue in Q4

• Q4 EBIT excl. NRI and FV

• somewhat lower year on year

Demand development Q4/11 vs Q4/10

Price development Q4/11 vs Q3/11

Consumer Board

Industrial Packaging

Newsprint and Book Paper

Coated Magazine Paper

Uncoated Magazine Paper

Coated Fine PaperUncoated Fine PaperWood Products

11

Next

Competition

Future that already happened

0

25

50

75

100

ad spend time spent

digital TV radio print

Western Europe 2010

Five years

telephonePC

mobilephoneTV

radioDVD

youtubeFacebook

0% 10% 20% 30% 40% 50%US population use 5 years after launch

50 %

Magazine

Flexibility

• From

• Minimum cost at full operating rate

• Sharing curtailments

• Machine specialisation

• To

• Lowest delivered cost at real operating rates

• Focus curtailments to highest cost units

• Asset base optimisation

0%

50%

100%

150%

200%

250%

Capacity reduction to market share 2005-2011Newsprint SC CMR

Stora Enso comp comp rest

Announced and completed permanent closures

Free Cash Flow

Investments

Restructuring

Use of cash flow from operations 2006-2010

Fixe

d co

st to

reve

nue

0.22

0.24

0.26

0.28

0.30

2007 2008 2009 2010 YTD 2011

Jump

Margin vs. Operating RateEB

IT %

0%

2%

4%

6%

8%

10%

Operating Rate90% 91% 92% 93% 94% 95% 96%

Margin vs. Operating RateEB

IT %

0%

2%

4%

6%

8%

10%

Operating Rate90% 91% 92% 93% 94% 95% 96%

Renew Recycle Re-use

Competition

100 million tons

25 %

Wood is good

gram

s pe

r kilo

gram

-2000

-1500

-1000

-500

0

500

1000

steel frame concrete block brick concrete wood

manufacturing CO2 Carbon sink

Prepared

• Good inventory levels

• Flexibility up

• Strong liquidity

• Executing on strategic growth

So much more to do!

Flexibility

Working Capital to Sales

0%

5%

10%

15%

20%

25%

Q32008

nowbest segment2nd

3rd

Less is more

MFC for 7 billion in 2012

• Lighter • Stronger • Less energy

0%

10%

20%

30%

40%

50%

Net Promoter Score

Promoters Passives Retractors

0%

20%

40%

60%

80%

Customer response on Rethink2010 2011

positives neutral negative

1