Stora Enso continues the changeJouko Karvinen, CEO & Markus Rauramo, CFO

19 August 2009

August 2009 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.

August 2009 3

Contents

Actions

Support measures

Summary

Financial impact on the company

Stora Enso continues the change

Appendix

Stora Enso continues the change

August 2009 5

Stora Enso continues the change

• Stora Enso plans further reductions of manufacturing capacity:

– Continuing weak demand

– Long-term cost pressure on wood fibre and energy

– Loss making since the fourth quarter of 2008; continued during the first half of 2009

– Earlier actions not sufficient in the present environment

August 2009 66

Wood costs 2003–2008 Currency rates are not the reason or the solution to the problems

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2003 2004 2005 2006 2007 2008 2009e

Wood costs in Finland compared to Swedenroad-side price

birch pulp woodpine pulp wood

spruce pulp woodspruce sawlogspine sawlogs

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2003 2004 2005 2006 2007 2008 2009e

Source: Stora Enso

Based on fixed currency rates in 2003

August 2009 77

Pulp mill inBrazil

Pulp mill inSweden,short fibre

Pulp mill inSweden, long

fibre

Pulp mill inFinland, short

fibre

Pulp mill inFinland, long

fibre

Wood costs Other costs (incl. trasnportation)

Pulp costs in Brazil, Sweden and Finland 1-6/2009, pulp transported to the port of Rotterdam

The figures do not include the cost of capital.

August 2009 8

Industrial electricity taxation in different countries

Source: Finnish Forest Industries Federation

Finland UK Germany Austria France Sweden

EUR/MWh

Electricity tax

Additional electricity tax (proposal) 2011

8

7

6

5

4

3

2

1

0

August 2009 999

Costs on distance Comparison between Swedish and Finnish units

Unit/Sweden Unit/Finland Unit/Sweden Unit/Finland

% SalesFY 2008 3 year average

Company plans to reduce high-cost manufacturing base further

August 2009 11

Units planned to be permanently closed down

Kotka

Varkaus

ImatraSunila

Tolkkinen

MillCapacity (tonnes) Grade Personnel Timing

Sunila Pulp Mill 375 000 Long-fibre pulp 250 2nd quarter 2010

Tolkkinen sawmill 260 000 m3 Sawn wood 55 By the end of 2009

Imatra PM 8 210 000 Uncoated fine paper 140 1st quarter 2010

August 2009 12

Kotka mills to be divested

Mill Capacity (tonnes) Grade Personnel

Kotka mills 185 000 MFC 530

175 000 Laminating paper

250 000 m3 sawn wood

Kotka

Varkaus

ImatraSunila

Tolkkinen

August 2009 13

Varkaus Mills provisionally planned to be permanently closed down in 2010

Mill Capacity (tonnes) Grade Personnel

Varkaus mills 290 000 Newsprint and directory paper 630

310 000 Uncoated fine paper

270 000 m3 sawn wood

Kotka

Varkaus

ImatraSunila

Tolkkinen

Support people affected

August 2009 15

People affected in earlier restructurings

Kemijärvi and Summa

Employees 664

Retirement 107

New jobs 433

Training 38

Summa

Kemijärvi

August 2009 16

We will continue to help people affected

• Help to affected personnel in finding re-employment

• Internal job offering, outplacement services

• Stora Enso to actively work with labour authorities to find new jobs and training opportunities

• Support to those having to move to another location

• Financial support to those people that want to start own businesses

Financial impact on the company

August 2009 18

Financial impact on the company

• Non recurring items Q3 2009:– Approximately EUR 245 million fixed asset and inventory write-

downs for the Q3 of 2009– Approximately EUR 25 million restructuring provision of Sunila,

Imatra (PM8) and Tolkkinen

• The debt equity ratio will increase from 0.53 (09Q2) to 0.59 as a result of the combined impact of the fixed asset impairment testing and asset restructuring

• The targeted annual operating profit improvement of planned closure is estimated to be in range of EUR 140 million to EUR 160 million depending of the outcome of the provisional planned closure of Varkaus Mills and the divestment of Kotka Mills from the beginning of 2011 onwards.

August 2009 19

Financial impact on the company

• Planned closures of Sunila Pulp Mills, Tolkkinen sawmill and PM 8 at Imatra Mills:

– Reduction of external sales approximately EUR 150 million and capital employed approximately EUR 50 million

Summary

August 2009 21

Summary

• Today’s announcement is based on the dramatic reduction in demand we have seen during the past year – we predict that some of that demand will not recur

• We need to balance our production to the changed demand environment and reduce our capacity starting from the highest cost units

• Finnish government has said in connection with state budget preparations that it will consider actions which could improve Finnish forest industry operating environment

• We appreciate that government has taken the necessary initiative and we welcome all decisions which may improve the situation

• However, those initiatives will not affect the plans published today – instead those longer term decisions will aim at safeguarding the remaining Finnish forest industry assets from 2011 onwards

Appendix

August 2009 2323

Permanent pulp, paper and board capacity reductions since 2006

Mill Date Grade Capacity reduction, t

Corbehem PM 3 and PM 4 Jun 2006 LWC 250 000

Varkaus PM 1 End 2006 WFC 95 000

Berghuizer Mill Oct 2007 WFU 235 000

Reisholz Mill End 2007 SC 215 000

Summa Mill Jan 2008 Newsprint, SC, book paper 415 000

Anjala Mill PM1 Feb 2008 Coated magazine paper 155 000

Baienfurt Mill End 2008 FBB 190 000

Kabel Mill PM 3 End 2008 Coated magazine 140 000

Kemijärvi Pulp Mill April 2008 Long-fibre (SW) pulp 250 000

Norrsundet Pulp Mill Dec 2008 Long-fibre (SW), pulp 300 000

Varkaus Mill coreboard machine Dec 2008 Coreboard 100 000

Total 2 345 000

Totals % of capacity as at end 2005 (adjusted for disposals)

Paper and board 1 795 000 t/a 11%Pulp 550 000 t/a 9%

August 2009 2424

Permanent sawn wood capacity reductions since 2006

Mill Date Capacity reduction, m3

Veitsiluoto Sawmill 2006 100 000

Honkalahti Sawmill 2006 90 000

Sauga Sawmill Jun 2007 130 000

Sollenau Sawmill 2007 110 000

Näpi Sawmill 2007-2008 100 000

Kotka Sawmill 2007-2008 70 000

Paikuse Sawmill End 2008 220 000

Zdirec Sawmill 2008 120 000

Ybbs Sawmill 2008 & Jun 2009 200 000

Kitee Sawmill 2008 & Jun 2009 130 000

Varkaus Sawmill Jun 2009 60 000

Total 1 330 000

Reductions equal 17% of capacity as at end 2005 (adjusted for disposals)