Stora Enso in brief

1
Stora Enso in brief

• Stora Enso is a forest products company producing
  newsprint and book paper, magazine paper, fine
  paper, consumer board, industrial packaging and
  wood products
• 12.7 million tonnes of paper and board
• 6.9 million m3 of sawn and processed wood
  products
• Sales 2009 EUR 8.9 billion
• Approximately 27 000 employees in more than 35
  countries
• Market capitalisation EUR 3.7 billion
• Shares listed on Helsinki and Stockholm stock
  exchanges

2
Breakdown by location
Number of employees by country 2009
Paper and board capacity by country 2010
Continuing operations
3
Production plants
Production plants
Pulp in bales
4
Breakdown by segment2009, continued operations
Operating profit, EUR 321 million
Sales, EUR 8 945 million
(Share of Groups operating profit)
excluding non-recurring items and fair valuations
5
Ownership by distribution31 Dec 2009
of shares
of voting power
(Non-Finnish/ Non-Swedish shareholders)
) Entirely owned by the Finnish State
6
Paper Industry Concentration
The paper industry is still relatively
fragmented, with top five firmscontrolling about
20-40 of the regional capacity
C(5)
Source Pöyry
C(5) combined share of top five firms
7
Long-term Demand Growth by Region through
2025Paper and Paperboard
Source Pöyry
8
Varkaus Mills
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Mill Site Map
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History of the forest industry in Varkaus
New ECOGAS power plant builts
Modernisation of PM 3 quality Modernisation of PM
4 finishing
New log handling plant Modernisation of
sawing Modernisation of bleaching plant
Rebuild of wood handlingRebuild of PM 3
Mill Service company Efora founded
2001
2002
2003
2004
2005
2006
2007
2008
2009
Planing mill New TMP-line Shutdown of groundwood
plant
Rebuild of the waste water treatmentplant and
sludge handling
Modernisation of hydropower plant Modernisation
of pulp drying section Shutdown of PM 1
Demonstration plant for biofuel
production Shutdown of Carton Machine
Gustaf Wrede starts sawmill operations
Merger of Stora and Enso
Start-up of power plant
Paper machine 2
Sulphate pulp production started
Recycled fibre plant started
Board machine
1830
1995
1912
1987
1921
1926
1961
1970
1977
1980
1997
1998
1909
Deal between Ahlström and Enso
Ahlström buys mill operations
Paper machine 1
Paper machine 3
Paper machine 4
Varenso founded
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Stora Enso Fine PaperVarkaus Mill

• Integrated sulphate pulp mill
• ECF 225 000 t/a
• One paper machine
• Envelope, Business Forms and Offset Papers
• Production 315 000 t/a
• Main raw materials bleached pine and birch pulp
• 98 exported
• Main markets EU

12
Shared ServicesVarkaus Mills

• Energy
• Environment and Security
• Transport
• Property Services
• Communications
• Office functions
• Purchasing
• HR
• IT

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Organization, Varkaus Mills
General Manager Reino Panula
Stora Enso Timber Timo Elola
Stora Enso Publication Paper Reino Panula
Stora Enso Fine Paper Jarkko Tehomaa
Shared Services Harri Avila
Corenso Recycling Esa Mäkelä

• 345 000 m3/a
• Sawn timber (whitewood)
• Planed sawn timber (whitewood)

• 315 000 t/a
• Envelope Papers
• Business Forms
• Offset Papers

• 285 000 t/a
• Standard newsprint
• Coloured newsprint
• Directory and catalogue papers
• Magazine papers

• 40 000 t/a
• Recycled Pulp
• Energy
• Aluminium

• Palveluyhtiö
• Energy
• Environment and Security
• Transport
• Property Services
• ---------------------------------
• Communications
• Office function
• Purchasing, HR, IT

Management Group Reino Panula (General Manager),
Harri Avila, Timo Elola, Aimo Kettunen ja Jarkko
Tehomaa Personnel Representatives Paula
Glumerus, Ari Häkkinen, Hannu Kanniainen, Eine
Luostarinen, Isto Markkanen, Ulla-Maija Olander,
Kai Pärnänen, Timo Suhonen and Jukka
Voutilainen Tarja Kiviluoto, Communications and
Maija-Helena Soininen, Secretary
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Total integration of wood processing at Varkaus
MillsRaw materials, 2 million m3/a, mainly
purchased from Savo region
Recycled fibre plant
Power Plants
Plast
Recycled Pulp 40 000 t/a
Sawdust
Wood park
Sawn timber Planed sawn timber 345 000 m3/a
Timber
Spruce logs
Spruce chips
Spruce chips
Stora Enso Wood Supply Finland Savo Region
Publication Paper Mill
TMP 250 000 t/a
Spruce pulpwood
Publication papers 285 000 t/a
Pine pulpwood
Fine Paper Mill
Pulp Mill 225 000 t/a
Round wood 95 Chips 5
Fine papers 315 000 t/a
Birch pulpwood
Spruce 60 Birch 25 Pine 15
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Wood and product transportationTransportation of
raw materials and products
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Environmental performance

• Policy on the environment and social
  responsibility and goals for environment
• Full use of wood raw material
• Utilization of waste and secondary products in
  energy production and soil structures
• 80 of used wood from certificated sources
• Competent, responsible personnel, committed to
  objectives
• Environmental issues incorporated into Quality
  System ISO 14001

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Energy procurement and productionThermal energy
production 2009

• Stora Ensos Varkaus Mills produce about 2100 GWh
  of thermal energy annually. This corresponds to
  about 200 000 t of heavy fuel oil.
• About 90 of thermal energy is generated from
  wood-based and recycled fuels. Oil and coal are
  used mainly as auxiliary fuels during
  exceptionally cold spells.
• 1,2 mill. m3 of wood bark is burned at the Mills
  annually.

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Fine paper making