Presentation material from the Q3 2016 financial results.

1. Financial results
for Q3 2016
CEO Karl-Henrik Sundström
CFO Seppo Parvi
25 October 2016

2. Disclaimer
It should be noted that Stora Enso and its business are exposed to various risks and uncertainties and 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. 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. All
statements are based on management’s best assumptions and beliefs in light of the information currently available to it
and Stora Enso assumes no obligation to publicly update or revise any forward-looking statement except to the extent
legally required.
25 October 20162
Stora Enso Q3 2016 Results

3. • Sales 2 393 MEUR decreased by 4.3%
− Increased by 1.8% excluding structurally
declining paper business and divested
Barcelona Mill
− Varkaus kraftliner and Beihai consumer
board mills’ ramp-up
• Operational EBIT was 219 MEUR,
representing EBIT margin of 9.2%
− Including a negative impact of 35 MEUR due
to Beihai ramp-up
• Cash flow from operations 390 (484)
MEUR
• Operational ROCE 10.1% (11.6%),
excluding Beihai Mill investment 13.5%
(13.1%)
• Balance sheet strong
− Net debt to operational EBITDA 2.1 (2.5)
− Payment of 118 MEUR from Suzhou paper
mill site divestment
25 October 2016
Stora Enso Q3 2016 Results
3
Another quarter of solid performance
Q3 2016 year-on-year

4. 4
Operational EBIT
Q3 y-o-y
25 October 2016
Stora Enso Q3 2016 Results

5. ROCE target reached excluding Beihai Mill
investment
Operational ROCE 10.1%, excluding Beihai Mill investment 13.5%
25 October 2016
Stora Enso Q3 2016 Results
5
*Excluding Montes del Plata until end of 2014 and excluding Beihai Mill project in Guangxi
ROCE target of 13%

6. Deleveraging continues
25 October 2016
Stora Enso Q3 2016 Results
6

7. Transformation steps since 2015
25 October 2016
Stora Enso Q3 2016 Results
7
Investments Divestment and closure announcements
Murow sawmill Uetersen Mill, Germany
Sunila Biorefinery Packaging unit in Chennai, India
Imatra de-bottlenecking Barcelona Mill, Spain
Varkaus conversion Packaging plant in Komárom, Hungary
Beihai board mill Arapoti Mill, Brazil
Varkaus wooden building elements IL Recycling AB, Sweden
Beihai BCTMP plant Ongoing Hartola production unit, Finland
Virdia demo plant Ongoing Kabel Mill, Germany
Beihai PE coating line Ongoing Suzhou Mill, China
Ala sawmill, boiler and pellets Ongoing Heinola planned closure
Imatra PE coating line and ARW Ongoing
Skutskär pulp mill, fluff Ongoing
Skoghall Mill, chemical plant Ongoing
Scandinavian corrugating
restructuring plans
Ongoing

8. • Prime quality reached. Customer tests of
liquid boards are proceeding well and the
first CKB board test runs are completed
• Full production expected in 18–24 months
from the start up in May 2016
• BCTMP (mechanical) plant operational
before end of Q4 2016
− 220 000 tonnes annual capacity
• Chemical pulp sourced mainly internally
− 130 000 tonnes hardwood from Veracel
− 90 000 tonnes softwood from the
market
• PE coating line investment project
proceeding as planned. Investment
expected to be completed in mid-2017
25 October 2016
Stora Enso Q3 2016 Results
8
Transformation – Beihai board mill
is ramping up ahead of plan

9. • Varkaus kraftliner ramp-up proceeding
− Reached EBITDA break-even in Q3
− Full production expected during second
half of 2017
• New production line for wooden building
components (LVL) ramping up in Varkaus
− Product certification on-going
− Full production expected mid-2018
25 October 2016
Stora Enso Q3 2016 Results
9
Transformation – Varkaus kraftliner
reached EBITDA break-even

10. Transformation journey
Growth businesses 67% of sales and 76% of operational EBIT
25 October 2016
Stora Enso Q3 2016 Results
2006 Sales
30% 67%
Q3/2016 Sales
2006 Operational EBIT
38%
10
Paper business, incl. Merchants
Wood products business
Packaging business
Other and eliminations
In 2006, all pulp used internally
2006
Paper
Biomaterials
Wood Products
Consumer Board
Packaging Solutions
Other and eliminations
Q3/2016
76%
Q3/2016 Operational EBIT

11. Balance sheet strengthened
Summary financials Q3 2016
25 October 201611
EUR million Q3/16 Q3/15
Change% Change %
Q3/16 /
Q3/15 Q2/16
Q3/16 /
Q2/16
Sales 2 393 2 500 -4.3% 2 526 -5.3%
Operational EBITDA 326 353 -7.6% 333 -2.1%
Operational EBITDA margin 13.6% 14.1% 13.2%
Operational EBIT 219 246 -11.0% 226 -3.1%
Operational EBIT margin 9.2% 9.8% 8.9%
Profit before tax excl. IAC 170 128 32.8% 112 51.8%
EPS excl. IAC, EUR 0.17 0.13 0.12
EPS (basic), EUR 0.16 0.16 0.16
Operational ROCE 10.1% 11.6% 10.3%
Operational ROCE excl. Beihai project 13.5% 13.1% 12.5%
Cash Flow from Operations 390 484 -19.4% 493 -20.9%
Net debt/last 12 months’ operational
EBITDA 2.1 2.5 2.3
Stora Enso Q3 2016 Results

12. Consumer Board Operational ROOC excl.
Beihai 42%
Q3 y-o-y
25 October 201612
• Sales growth 3.2% excluding the divested Barcelona Mill
• Operational EBIT increased 20 MEUR or 23.3% excluding the
Beihai operations
− Due to increased efficiency and improved product mix
• Operational ROOC 12.9% (16.4%)
− Excluding Beihai Mill 42.3% (30.0%)
• Beihai operational EBIT loss was 42 MEUR (7 MEUR) in Q3
− Expected to be approximately 33 MEUR in Q4
• Investment of 14 MEUR to renew and modernise malodorous
gas processing at Imatra mills in Finland was announced
• CKB Nude launched
− Uncoated carton board designed to meet the consumer
preferences with natural look and feel
Stora Enso Q3 2016 Results
Sales excl. Barcelona
MEUR
MEUR Operational EBIT

13. Packaging Solutions Sales +15%
Q3 y-o-y
25 October 201613
• Sales +15% driven by Varkaus kraftliner mill and higher
volumes from Ostrołęka containerboard mill
• Operational EBIT 3 MEUR higher
− Improved result of Varkaus Mill was partly offset by
continued challenges with Stora Enso Inpac in China
• Varkaus kraftliner mill ramp-up proceeding
− EBITDA break-even reached in Q3
• Plans to consolidate corrugated packaging production in
Finland to Lahti plant announced
Stora Enso Q3 2016 Results

14. Biomaterials operational EBITDA margin 21.3%
Q3 y-o-y
25 October 201614
• Sales decrease due to lower hardwood pulp
selling prices and slightly lower volumes due to
maintenance
• Operational EBIT decreased
− Significantly lower hardwood pulp prices
− Slightly lower deliveries mainly due to
maintenance
− Veracel annual maintenance during Q3 2016,
year ago during Q2 2015
• Customer trials for commercial purposes of lignin
proceeding well
• R&D ramp-up continues in Q4
Stora Enso Q3 2016 Results

15. Wood Products sales increased by 3%
Q3 y-o-y
25 October 201615
• Sales increased
− Mainly due to higher volumes
− Investment at Murow sawmill in Poland
− Varkaus LVL plant in Finland
• Operational EBIT remained stable
− Lower log costs and higher sales volumes were offset by
higher fixed costs and lower income from saw dust and
wood chips
• Wooden building components (LVL) at Varkaus Mill
ramping up as planned
− Product certification going on
• Operational ROOC continue stable at 17.5%
Stora Enso Q3 2016 Results

16. Paper Operational EBITDA improved 75%
Q3 y-o-y
25 October 201616
• Stable prices and stable volumes in declining market, sales remained
flat excluding the structural changes
• Operational EBITDA increased 75%
− Tight cost management and good production efficiencies
− Lower variable costs, especially in energy, wood, chemicals and pulp
− Lower fixed costs, due to active cost management
− Included 7 MEUR asset disposal
• Cash flow after investing activities to sales record high at 11.7%
− Well above the long term target of 7%
• Divestment of Kabel Mill in Germany completed and divestment of
Suzhou Mill site proceeding according to the plan
• Stora Enso is reviewing how to create the best conditions for the Paper
division to compete under increasing cost pressures and declining
market demand
− The internal project is proceeding as planned
Stora Enso Q3 2016 Results

17. Divisional targets Q3 15 Q3 16 Status
Consumer Board Operational ROOC > 20% 16.4% 12.9%
Consumer Board excl. Beihai 30.0% 42.3%
Packaging Solutions Operational ROOC > 20% 8.7% 9.6%
Biomaterials Operational ROOC > 15% 15.5% 6.7%
Wood Products Operational ROOC > 18% 17.5% 17.5%
Paper Cash flow after investing activities to sales > 7% 9.2% 11.7%
Strategic targets ambitious, but reachable
Group targets Q3 15 Q3 16 Status
Dividend To distribute 50% of net income over the cycle
Growth* To grow faster than the relevant market 4.9% (YoY) 1.8% (YoY)
Net debt to operational EBITDA <3.0x 2.5 2.1
Fixed costs to sales <20% 25.0% 25.5%
Debt to equity <80% 66% 52%
Operational ROCE >13% 11.6% 10.1%
Operational ROCE excl. Beihai 13.1% 13.5%
*Excluding Paper and Barcelona Mill
25 October 2016
Stora Enso Q3 2016 Results
17

18. • Sales are estimated to be slightly
higher or slightly lower than the
amount of 2 393 MEUR recorded in
Q3/2016
• Operational EBIT is expected to be in
line with or somewhat lower than the
219 MEUR recorded in Q3/2016
• The impact of the annual
maintenance shutdowns expected to
be approximately 35 MEUR lower
than in Q3/2016
25 October 2016
Stora Enso Q3 2016 Results
18
Guidance for Q4 2016
Compared to Q3 2016

19. • Transformation into customer-focused
renewable materials company
progressing well
• Beihai consumer board mill is ramping-up
ahead of the plan
− Customer tests of liquid board ongoing
− Test runs of CKB board completed
• Varkaus kraftliner mill reached EBITDA
break-even
• Centre of excellence for corrugated
packaging in Lahti under consideration
• Wooden buildings on rise
− Australia’s first wooden office building from
Stora Enso CLT
• Murow sawmill in Poland inaugurated
• CKB Nude launched
25 October 2016
Stora Enso Q3 2016 Results
19
Another quarter of solid performance

20. Welcome to Stora Enso CMD
on 17 November 2016 in London
25 October 2016
Stora Enso Q3 2016 Results
20

21. Thank you!

22. Operational EBIT by segments
EUR million Q316 Q315
Change%
Q316/Q315 Q216
Change %
Q316/Q216
Consumer Board 67 80 -16.3% 76 -11.8%
% of sales 11.2% 13.2% 12.7%
Packaging Solutions 21 18 16.7% 17 23.5%
% of sales 8.1% 8.0% 6.6%
Biomaterials 43 100 -57.0% 57 -24.6%
% of sales 12.9% 25.5% 16.7%
Wood Products 22 22 0.0% 33 -33.3%
% of sales 5.7% 5.9% 7.6%
Paper 53 6 n/m 43 23.3%
% of sales 6.7% 0.7% 5.1%
Other 13 20 -35.0% 0 100.0%
% of sales 2.3% 3.6% 0.0%
25 October 201622
Stora Enso Q3 2016 Results

23. Net Financials
23
EUR million
Q3
2016
Q3
2015
Change
MEUR
Q316/
Q315
Q2
2016
Change
MEUR
Q316/
Q216
Net interest expense -36 -39 3 -34 -2
Average interest rate* 4.2% 4.4% 4.1%
Foreign exchange gains and losses 6 -43 49 -28 34
Other financial items of which -5 -11 6 -37 32
Fair valuation of interest rate derivatives** - - - -1 1
Fair valuation of long-term debt - - - - -
Pension costs (IAS 19R) -2 -3 1 -1 -1
Other items -3 -8 5 -35 32
Total net financial items -35 -93 58 -99 64
* Quarterly gross interest expense divided by average gross debt
** Not hedge accounted interest rate derivatives.
25 October 2016
Stora Enso Q3 2016 Results

24. Strong cash flow
25 October 2016
Stora Enso Q3 2016 Results
24

25. Cash flow by divisions in Q3
25 October 201625
Stora Enso Q3 2016 Results

26. Net FX by division
25 October 201626
Stora Enso Q3 2016 Results

27. 27
Stora Enso Q3 2016 Results
25 October 2016
Capex and Depreciation

28. Transaction risk and hedges Q3 2016
25 October 201628
€ million USD SEK GBP
Estimated annual net operating cash flow exposure 1080 -830 330
Transaction hedges -590 510 -150
Hedging percentage for the next 12 months 55% 61% 46%
Operating Profit: Currency effect +/- 10%*
Based on estimated 12 month net
operating cash flow exposure
€ million
USD 108
SEK -83
GBP 33
*Before currency hedges assuming no
other changes other than a single
currency rate movement occurs
Stora Enso Q3 2016 Results

29. 29
Global bleached chemical market pulp inventories
by grade in tonnes and days of supply
Source: EPIS
25 October 2016
Stora Enso Q3 2016 Results

30. Stora Enso energy balance*
Q3 2016
25 October 201630
Impact on non-hedged volume
on operating profit from 10%
change in:
EUR million p.a.
Electricity market price ~5.6
Fossil fuel price ~5.3
*) Pulp, paper and board mills in Europe and overseas, excl. Beihai
Stora Enso Q3 2016 Results
0
10
20
30
40
50
Electricity Fuels
Internal External hedged External (non-hedged)
Self sufficiency 54%
Self sufficiency 66%
Total energy
self sufficiency
63%
TWh/a

31. Stora Enso electricity procurement*
Q3 2016
25 October 201631
*) Pulp, paper and board mills in Europe and overseas, excl. Beihai
Stora Enso Q3 2016 Results

32. Sensitivity analysis
Impact on operational EBIT
10% decrease in Impact*
Energy prices Positive 9 MEUR
Wood Prices Positive 172 MEUR
Chemical and filler prices Positive 45 MEUR
25 October 201632
10% increase in Impact*
Market pulp price, total Positive 120 MEUR
10% strengthening against Euro in the
value of**
Impact*
US dollar Positive 108 MEUR
Swedish krona Negative 83 MEUR
British pound Positive 33 MEUR
Brazilian real Negative 13 MEUR
*Impact on operational EBIT for the next twelve months.
** Before FX hedges
An increase of energy, wood or chemical and filler prices or decrease of pulp prices, as well as weakening of
the currencies would have the opposite impact
Stora Enso Q3 2016 Results

33. Pulp sensitivity analysis
10% change in prices, impact on operational EBIT
10% increase in Impact*
Hardwood pulp** prices Positive 45 MEUR
Softwood pulp prices Positive 50 MEUR
Fluff pulp prices Positive 15 MEUR
Dissolving pulp prices Positive 10 MEUR
Market pulp price, total Positive 120 MEUR
25 October 201633
* Impact on operational EBIT for the next twelve months. A decrease of pulp prices would have the opposite impact.
** Includes 600 000 tonnes from Montes del Plata
Stora Enso Q3 2016 Results

34. € million
Other loans / liabilitiesBonds Commercial papers
Revolving Credit Facility € 700 million matures in January 2019 and is fully undrawn
Maturity profile Q3 2016
25 October 2016
Stora Enso Q3 2016 Results
34

35. Permanent pulp, paper and board capacity
reductions since 2006
35
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, uncoated mag, 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
Imatra PM 8 Mar 2010 WFU 210 000
Varkaus PM 2 and PM 4 Sep 2010 Newsprint, directory paper 290 000
Maxau PM 7 Nov 2010 Newsprint 195 000
Hylte PM1 Dec 2012 Newsprint 180 000
Ostroleka PM2 Jan 2013 Containerboard 85 000
Hylte PM2 May 2013 Newsprint 205 000
Kvarnsveden PM11 May 2013 Newsprint 270 000
Veitsiluoto PM1 Apr 2014 Coated magazine 190 000
Corbehem Mill July 2014 LWC 330 000
Varkaus Aug 2015 WFU 280 000
Suzhou Jun 2016 WFU 240 000
Total 4 820 000
25 October 2016
Stora Enso Q3 2016 Results

36. 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
Tolkkinen Sawmill End 2009 260 000
Kopparfors Sawmill End 2011 310 000
Sollenau Sawmill Jul 2014 400 000
Total 2 300 000
25 October 2016
Stora Enso Q3 2016 Results
36

37. Pulp price development
25 October 2016
Stora Enso Q3 2016 Results
37
Source: FOEX

38. Pulp wood and saw log prices
Wood prices in Finland
25 October 2016
Stora Enso Q3 2016 Results
38

39. Paper for recycling prices
25 October 2016
Stora Enso Q3 2016 Results
39
German RCP price development. free delivered
Source: Verband Deutscher Papierfabriken/Stora Enso

40. 25 October 201640
Stora Enso Q3 2016 Results