13.4.2010Presentation, Varkaus Mills / Arja Malmberg1 Stora Enso in brief Stora Enso is a forest...

13.4.2010 Presentation, Varkaus Mills / Arja Malmberg 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


23 %10 %

7 %

5 %

17 %

3 %7 %

28 %

Finland Sweden Germany

Poland Russia Other Europe

China Other Countries

Breakdown by location

28 %

15 %

3 %

1 %

12 %

41 %

Finland Sweden Germany

China Brazil Other Countries

Number of employees by country 2009* Paper and board capacity by country 2010

*Continuing operations


Production plants

Production plants

Pulp in bales


40 %

13 %10 %

51 %

5 %

-2 %

Newsprintand Book

Paper

MagazinePaper

Fine Paper ConsumerBoard

IndustrialPackaging

WoodProducts

Breakdown by segment2009, continued operations

15 %

19 %20 %

21 %

9 %

14 %

Newsprintand Book

Paper

MagazinePaper

Fine Paper ConsumerBoard

IndustrialPackaging

WoodProducts

Operating profit, EUR 321 million*(Share of Group’s operating profit)

Sales, EUR 8 945 million

*excluding non-recurring items and fair valuations


25 %

2 %

31 %

3 %

2 %

15 %22 %

Finnish Institutions Solidium Oy *) Finnish private shareholders

Swedish institutions Swedish private shareholders ADRs

Under nominee names

12 %

3 %

14 %

4 %6 %

44 %

17 %

Ownership by distribution31 Dec 2009

% of shares % of voting power

(Non-Finnish/ Non-Swedish shareholders) *) Entirely owned by the Finnish State


Paper Industry Concentration

Source: Pöyry

0

10

20

30

40

50

North America Western Europe Asia Latin America World

1997

2009

The paper industry is still relatively fragmented, with top five firmscontrolling about 20-40% of the regional capacity

C(5) = combined share of top five firms

C(5) %


Long-term Demand Growth by Region through 2025Paper and Paperboard

Source: PöyryShare of consumption in 2006, %

-1

0

1

2

3

4

5

6

7

0 20 40 60 80 100

Demand growth, %/a

JapanNorth America

Western Europe

India

Latin AmericaRest of Asia

Oseania

China

Middle East

Russia

Average 1,9 %/a

Eastern EuropeAfrica


Varkaus Mills


Mill Site Map


History of the forest industry in Varkaus

New ECOGAS power plant builts

1830 19951912 19871921 1926 1961 1970 1977 1980 1997 19981909

2001 2002 2003 2004 2005 2006 2007 2008 2009

New log handling plant Modernisation of sawingModernisation of bleaching plant

Planing millNew TMP-lineShutdown of groundwood plant

Rebuild of the waste water treatmentplant and sludge handling

Modernisation of hydropower plantModernisation of pulp drying sectionShutdown of PM 1

Modernisation of PM 3 qualityModernisation of PM 4 finishing

Rebuild of wood handlingRebuild of PM 3

Demonstration plant for biofuel productionShutdown of Carton Machine

Mill Service company Efora founded

Gustaf Wrede starts sawmilloperations

Merger of Stora and Enso

Start-up of power plant

Paper machine 2 Sulphate pulp production started

Recycled fibre plant started

Board machine

Deal between Ahlström and Enso

Ahlström buys mill operations

Paper machine 1 Paper machine 3 Paper machine 4 Varenso founded


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


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

Shared ServicesVarkaus Mills


Organization, Varkaus Mills

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

345 000 m3/a• Sawn timber

(whitewood)• Planed sawn timber

(whitewood)

General ManagerReino Panula

Corenso RecyclingEsa Mäkelä

Stora Enso Timber

Timo Elola

Stora EnsoPublication Paper

Reino Panula

Stora Enso Fine Paper

Jarkko Tehomaa

Shared ServicesHarri Avila

Management GroupReino Panula (General Manager), Harri Avila, Timo Elola, Aimo Kettunen ja Jarkko Tehomaa

Personnel RepresentativesPaula Glumerus, Ari Häkkinen, Hannu Kanniainen, Eine Luostarinen, Isto Markkanen, Ulla-Maija Olander, Kai Pärnänen, Timo Suhonen andJukka VoutilainenTarja Kiviluoto, Communications and Maija-Helena Soininen, Secretary

Palveluyhtiö• Energy• Environment and Security• Transport• Property Services

---------------------------------• Communications• Office function• Purchasing, HR, IT


Total integration of wood processing at Varkaus MillsRaw materials, 2 million m3/a, mainly purchased from Savo region

Publication Paper Mill

Fine PaperMill

Pulp Mill

225 000 t/a

TMP

250 000 t/a

TimberSpruce logs

Stora Enso Wood SupplyFinland

Savo Region

Sprucepulpwood

Spruce chips

Pine pulpwood

Birch pulpwood

Recycled fibre plant

Sawn timberPlaned sawn timber 345 000 m3/a

Recycled Pulp 40 000 t/a

Publication papers 285 000 t/a

Fine papers 315 000 t/a

Power PlantsPlast

Sawdust

Spruce 60 %Birch 25 %Pine 15 %

Wood park

Round wood 95 %Chips 5 %

Spruce chips


Wood and product transportationTransportation of raw materials and products

• Wood raw material

• Paper

• Sawn timber

Train

17 %

60 %

25 %

Road

80 %

40 %

62 %

Ship

3 %

-

13 %


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

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010

t/a

Sulphur dioxide TRS (SO2)

Sulphur dioxide emissions to air (SO2+TRS)

0

1

2

3

4

5

6

7

8

2005 2006 2007 2008 2009 2010

t/aPhosphorus (P)


Energy procurement and productionThermal energy production 2009

• Stora Enso’s 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.

38 %

35 %

15 %

9 %3 %

Black liquor Wood-based fuels

Recycled heat Fossil fuels

Recycled fuels


Fine paper making

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