1. Stora Enso expands business in Pakistan
Mats Nordlander, Executive Vice President Renewable Packaging
September 18 2012 1

2. Stora Enso portfolio
FY 2011
Group Sales, EUR 10 964.9 million Operational EBIT, 866.7 EUR million
Printing and Reading Biomaterials Building and Living Renewable Packaging Other
0%
29% 5.5 %
46% 32.9 %
34.8 %
15%
10%
19.5 %
6.0 %
2

3. Stora Enso strategy
 Growth markets
 Renewable
packaging
Biomaterials
Competitive paper

4. Implementing strategy
High return growth businesses
Project On target Status

Montes del Plata Start up approximately
pulp mill, Uruguay mid-year 2013

Ostroleka Proceeding as planned
containerboard
machine, Poland

Guangxi, China Proceeding as planned

Skoghall Support wood handling in
investment Sweden and further
develop Skoghall mill

Stora Enso Inpac Q3 2011

Bulleh Shah Packaging Q1 2013
Limited

5. Timing of Strategic Projects
Bulleh Shah
Packaging Guangxi, Chin
Limited a
Q1 2013 Pulp and Board
mill, start-up
Montes del Q4 2014
Plata, Uruguay
Ostroleka, Po Pulp mill, start-up
land mid-year 2013
Stora Enso Inpac
Container
Q3 2011
Skoghall, Swe board
den machine start-
Investment up
start-up end Q1 2013
Q4 2012
5

6. Strongest growth will be in Asia
- Increasing demand of virgin fibre-based consumer board
CAGR
CAGR CAGR
0,2 %
1,4 % 4,6 %
CAGR
6,9 %
1.5
0.9
4,4
3,8
Eastern
6,3
6,2
Europe
Western CAGR
Europe 3,3 %
North
11,6
0,7
0,5
America
Middle East
6,0
& Africa
Fibre-based consumer Asia
board consumption CAGR
2010-2020 CAGR
3,5 %
Million tonnes
China 9%
1,5
1,1
Pakistan
Pakistan 9%
9%
South India 6%
America
Middle East 4%
Source: Pöyry and Stora Enso 6

7. Pakistan is an attractive growing consumer market
Stora Enso partners in customers expansion into new growth markets
• Pakistan the 4’th biggest dairy
market globally
• The market for our products is
growing 5 – 15 percent per year
• Stora Enso global customers are
expanding in Pakistan
7

8. Liquid dairy products significant driver for growth
Especially in China, Brazil, Pakistan and India
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
8

9. Key facts about the investment
• Stora Enso has signed an agreement to establish a
joint venture with Packages Ltd. of Pakistan. The initial
shareholding will be 35% with a commitment to
increase the shareholding at the agreed value to 50%
subject to certain conditions being met.
• The joint venture will include the operations of Kasur
Mill, which is a mill under development (paperboard
and corrugated packaging), and Karachi Plant
(corrugated packaging) currently owned by Packages.
• The joint venture will to a large extent provide
packaging products, such as liquid packaging
board, folding boxboard and corrugated packaging, to
key local and international companies in the fast-
growing market of Pakistan.
• The joint venture will employ about 950 people and its
annual capacity will be 360 000 tonnes of
paperboard, corresponding to a turn over of USD 390
million when the investments have been completed.
9

10. Facts about the joint venture and Packages Ltd
Packages Ltd. is the largest packaging and
board producer and converter in Pakistan.
It has 3 000 employees. The main assets
are located in Lahore and Kasur in the
province of Punjab.
The shares of Packages Ltd. are listed on
the Karachi, Islamabad and Lahore stock
exchanges.
10

11. Our financial commitment
Maximum USD 130 million
• Enterprise value of JV is up to USD 125 million
– Investment made in two steps; 35 % of the JV now and additional 15 % later,
subject to certain conditions being met.
– Including an additional maximum performance compensation, based on the
financial results of the second half of 2012 and the first half of 2013
• Both partners are committed to further investment programme of total
USD 135 million during 2013 and 2014 including:
– a new biomass power plant
– a rebuild of current board machines
• In total, maximum Stora Enso capital commitment of USD 130 million
11

12. Modern processes and equipment
Presenter name September 19, 2012 12

13. Modern processes and equipment
Presenter name September 19, 2012 13

14. Modern processes and equipment
Presenter name September 19, 2012 14

15. Long tradition of cooperation
• Packages is a long term partner
that Stora Enso knows well. The
largest shareholder is the family of
Babar Ali who has long ties with
Swedish and international
companies including Stora Enso in
the region.
• Packages Ltd. has a long tradition
of working with key local and
international companies. Stora
Enso already has a 6.4%
shareholding in Packages Ltd.
15

16. Managed in accordance with Stora Enso policies
• A strong sustainability agenda is
established in Pakistan.
• Already there is advanced processes
established at Packages.
• In addition, Stora Enso will have its own
expertise organization in place.
• Main activities are
training, monitoring, auditing and follow
up in reference to Stora Enso code of
conduct
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17. Summary
• Strategic move
• Expands in growth market
• Attractive investment
• Long tradition of cooperation
We are committed to growth and
this investment is one of several
proof points in that process.
17