Result q3 2015_web

Financial Results for Q3 2015
CEO Karl-Henrik Sundström and CFO Seppo Parvi
23 October 2015
1

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.
Stora Enso Q3 2015 Results 223 October 2015

Solid performance supported by currencies
Q3 2015 year-on-year
As previously announced on 12 October:
• Sales remained at 2 500 MEUR
• Excluding paper and divested businesses +4.9% mainly
due to MdP pulp mill volumes and favorable FX
• Operational EBIT increased by 17.1% to MEUR 246
(MEUR 210)
• Margin increased to 9.8%
• Maintenance impact was 13 MEUR more than estimated
in July
• Strong cash flow from operations 484 MEUR
• Net debt to last 12 months’ operational EBITDA reduced to
2.5
23 October 2015Stora Enso Q3 2015 Results 3

4
Operational EBIT improvement driven by Biomaterials
15Q2 vs 15Q3
23 October 2015Stora Enso Q3 2015 Results

Operational ROCE continues to improve towards 13%
*Excluding Montes del Plata until end of 2014 and excluding Guangxi project
ROCE
target of
13%

2014
Q1
2015
Q2
2015
Q3
2015
Montes del Plata pulp mill
- Performed at the nominal capacity level in June
- Annual capacity of 1.3 Mt of which Stora Enso’s share 50%
Murow sawmill
- Started in Q2 2015 as planned.
- Capacity increase to 140 000 m³/shift/year
Sunila Biorefinery
- Investment completed in Q1 2015
- First volumes of lignin are expected to be commercialised in early 2016
Virdia acquisition
- Acquired in June 2014
- Extraction and separation technologies for conversion of cellulosic biomass into
highly refined sugars and lignin
Imatra de-bottlenecking
- The investment at the Imatra mill in Finland in quality, cost-competitiveness and an
increase in capacity was completed according to plan.
Varkaus conversion
- The conversion of the fine paper machine to kraftliner is proceeding and the
production started in October
Transformation steps completed

First rolls of Varkaus kraftliner production

Consumer
Board
Guangxi consumer
board mill
800
MEUR
Mid-
2016
Wood
Products
Varkaus wooden
building elements
43
MEUR
Q2
2016
Biomaterials
Xylose demonstration
and market
development plant
32
MEUR
Early
2017
Transformation in progress

Guangxi consumer board machinery construction
proceeding according to plan
Board mill

62 %
6 %
35 %
-3 %
70 %
12 %
21 %
-3 %
Transformation journey continues
Growth businesses with 64% of sales and 97% of operational EBIT
2006 Sales
Q3/2015 Sales
64%
97%
30%
38%
In 2006, all pulp used internally
Q3/2015 Operational EBIT2006 Operational EBIT

Summary financials
Q3 2015
MEUR Q3/15 Q3/14
Change% Change %
Q3/15 -
Q3/14 Q2/15
Q3/15 -
Q2/15
Sales 2 500 2 514 -0.6% 2 562 -2.4%
Operational EBITDA 353 333 6.0% 318 11.0%
Operational EBITDA margin 14.1% 13.2% 12.4%
Operational EBIT 246 210 17.1% 207 18.8%
Operational EBIT margin 9.8% 8.4% 8.1%
Net profit for the period 124 123 0.8% 123 0.8%
EPS (basic), EUR 0.16 0.15 0.17
Operational ROCE 11.6% 9.7% 9.4%
Operational ROCE, excl. Guangxi project 13.1% 13.0%* 10.9%
Cash Flow from Operations 484 257 88.3% 489 -1.0%
Net debt/last 12 months’ operational EBITDA 2.5 2.8 2.7
11Stora Enso Q3 2015 Results 23 October 2015
*Excluding Guangxi and Montes del Plata investments

Biggest foreign exchange impact in Biomaterials
Net FX in Q3 y-o-y by divisions
Net FX impact on Operational EBIT was 59 MEUR in Q2 and 57 MEUR in Q3 y-o-y

Sensitivity analysis including Brazilian real
10% change, impact on operational EBIT
10% increase in Impact*
Market pulp price, total Positive 125 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.
10% decrease in Impact*
Energy prices Positive 5 MEUR
Wood prices Positive 167 MEUR
Chemical and filler prices Positive 58 MEUR
10% strengthening against Euro
in the value of**
Impact*
US dollar Positive 107 MEUR
Swedish krona Negative 82 MEUR
British pound Positive 45 MEUR
Brazilian Real Negative 10 MEUR

MEUR
Other loans / liabilitiesBonds Commercial paper
Debt maturity profile Q3 2015
Revolving Credit Facility 700 MEUR matures in January 2018 and is fully
undrawn
Q3 q-o-q:
• The average interest rate decreased from 4.7% to 4.4%
• The average maturity was prolonged from 3.9 to 4.3 years
150 MEUR private placement issued in August

Consumer Board operational Sales increased by over 4%
15Stora Enso Q3 2015 Results
• Sales increased by over 4% due to increased
volumes in food service boards and general
packaging
• Operational EBIT decreased by 15 MEUR mainly
due to higher pulp and chemical costs 5 MEUR and
Guangxi project 10 MEUR
– Operational EBIT excluding Guangxi project 88 MEUR
• Operational ROOC 16.4% (22.4%)
– Operational ROOC excluding Guangxi 30%
• Maintenance in Q4 scheduled at Fors and Skoghall
Mills.
23 October 2015
-15.8% 78
91
+4.3%

Packaging Solutions operational EBIT impacted
negatively by transformation
• Sales in Q3 decreased by 18% y-o-y
• Sales excluding Corenso remained unchanged in
Q3 y-o-y
• Operational EBIT was 17 MEUR lower
– Operational EBIT excluding Corenso decreased
by 10 MEUR
– The Varkaus project and the divestment of the
Komárom mill in Hungary had a negative impact of
8 MEUR and 4 MEUR respectively on operational
EBIT
• Operational ROOC 8.7% (16.0%)
• Maintenance in Q4 scheduled at Heinola Mill
.
23 October 2015
0%
-35.7%

Biomaterials Q3 sales increased by 38% and
operational EBIT by 76 MEUR
• Sales increased by 38% due to MdP volumes
and FX movements
• Operational EBIT increased by 76 MEUR due to
– Montes del Plata ramp-up,
– Favourable FX,
– Good performance of the Nordic pulp mills
– Higher hardwood pulp prices
• Operational ROOC was improved to 15.5%
from 4.2%
• Maintenance in Q4 continued at Skutskär Mill
and Sunila annual maintenance stoppage
316.7%
38.0%

Wood Products profitability improved
• Sales declined by 12% mainly as a result of
lower volumes to North African and Middle
Eastern markets.
• Operational EBIT stable at 22 MEUR
– Lower sales prices were compensated by
reduced personnel and wood costs
• Operational ROOC 17.5%
-12.5%
0%

Paper continued to generate good cash flow
• Sales declined by 5% due to lower sales prices
• Operational EBITDA decreased by 40 MEUR due
to lower sales prices and higher pulp costs
• Cash flow after investing activities to sales
improved from 4.5% to 9.2% due to improved
working capital
• Maintenance in Q4 at Nymölla Mill
• Maintenance impact expected to be 20 MEUR
lower in Q4 Q-o-Q
-5%
-48%
52

Forecast for capex in 2015
MEUR Forecast 2015
Capital expenditure 940-970
Depreciation 520–540
The capital expenditure forecast has been increased from 820–880 MEUR communicated earlier to
940–970 MEUR. The capitalisation of the investment projects in Varkaus and Guangxi has been
faster than previously planned. The total capital expenditure for the projects remains unchanged.
The capital expenditure forecast includes 90 MEUR for biological assets and approximately 450
MEUR for the Guangxi project.

Forest company Bergvik Skog increases fair value of its
forests
• The increase is approximately 435 MEUR for
Stora Enso
• Fair value criteria:
– Long-term cutting projections
– Price assumption
– The decrease of WACC from 6.25% to 5.2%.
• Recorded in the IFRS operating profit in the
Q4 of 2015, no effect on Operational EBIT.

Challenging, but reachable strategic targets
Q3/15 follow-up
Group targets Q2 2015 Q3 2015 Status
Dividend To distribute 50% of net income over
the cycle
Growth excl. Paper To grow faster than the relevant
market
4.8% (YoY) 4.9% (YoY)
Net debt to operational EBITDA <3.0x 2.7 2.5
Fixed costs to sales <20% 25.5% 25.0%
Debt to equity <80% 70% 66%
Operational ROCE >13% 9.4% 11.6%
Operational ROCE excl. Guangxi 10.9% 13.1%
Divisional targets Q2 2015 Q3 2015 Status
Consumer Board Operational ROOC > 20% 16.1% 16.4%
Consumer Board excl. Guangxi 30.8% 30.0%
Packaging Solutions Operational ROOC > 20% 11.7% 8.7%
Biomaterials Operational ROOC > 15% 8.9% 15.5%
Wood Products Operational ROOC > 18% 17.9% 17.5%
Paper Cash flow after investing activities to sales >
7%
5.1% 9.2%

Guidance for Q4 2015 reconfirmed
Compared to Q3 2015
• The Q4 2015 sales are estimated to be
similar to the amount of the 2 500
MEUR
• Operational EBIT is expected to be in
line with the 246 MEUR recorded in the
third quarter 2015
• The maintenance impact is expected to
be 40 MEUR lower in the fourth quarter
compared to the third quarter,
– out of which approximately 20 MEUR
comes from the Paper division.

Summary - Transformation continues
• Sales excluding divested businesses grew
nearly 5%
• Operational EBIT increased by over 17%
• Balance sheet continued to strengthen
– Net debt to EBITDA 2.5
• Transformation continues:
– Kraftliner production has started in Varkaus
– Varkaus wood products investment Q2 2016
– Guangxi project mid-2016

Net Financial Items increased, but average interest
rates decreased due to own actions
EUR million
Q3/
2015
Q3/
2014
Change %
Q3/15-
Q3/14
Q2/
2015
Change %
Q3/15-
Q2/15
Net interest expense -39 -48 19 -47 17
Average interest rate* 4.4% 4.8% 4.7%
Foreign exchange gains and losses -43 -16 n/m - n/m
Other financial items. of which -11 -7 -57 -19 42
Fair valuation of interest rate derivatives** 22 - 4
Fair valuation of long-term debt - - 1
Pension costs (IAS 19R) -3 -2 -2
Other items -30 -5 -22
Total net financial items -93 -71 -31 -66 -41
* Quarterly gross interest expense divided by average gross debt
** Not hedge accounted interest rate derivatives.

Balance sheet continued to strengthen
Q3 2013 – Q3 2015
*Last twelve months’ operational EBITDA

Operational EBIT by segments
EUR million Q3/15 Q3/14
Change % Q2/15 Change %
Q3/15-
Q3/14
Q3/15-
Q2/15
Consumer Board 80 95 -15.8% 78 2.6%
% of sales 13.2% 16.3% 12.9%
Packaging Solutions 18 35 -48.6% 24 -25.0%
% of sales 8.0% 12.7% 10.6%
Biomaterials 100 24 n/m 59 69.5%
% of sales 25.5% 8.5% 16.2%
Wood Products 22 22 - 23 -4.3%
% of sales 5.9% 5.1% 5.2%
Paper 6 33 -81.8% 12 -50.0%
% of sales 0.7% 3.4% 1.3%
Other 20 1 n/m 11 81.8%
% of sales 3.6% 0.2% 1.7%

Permanent pulp, paper and board capacity reductions
since 2006
Stora Enso Q3 2015 Results 29
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
Total 4 580 000
23 October 2015

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

Net cash flows and foreign exchange hedges
As at 30 September 2015
MEUR USD SEK GBP
Estimated annual net operating cash flow exposure
1 070 -820 450
Transaction hedges as at 30 June 2015
-500 420 -210
Hedging percentage for the next 12 months
47% 51% 47%

Net foreign exchange impact on Operational EBIT of 57
MEUR year-on-year
Includes
RCP -
Saw logs 1
Pulp wood 4
Pulp -2
WS EBIT -1
+246+15+38
+54
+210
+3
0
50
100
150
200
250
MEUR
Q3 2015OtherFX on costsFixed costs
-11
Variable costsFX on salesLocal sales
prices and mix
-34
Volumes
-28
Q3 2014
In Paper FX gains partially compensated the price decline
In Biomaterials both price changes and FX contributed positively
In Packaging Solutions FX loss was compensated by sales price and mix.

Cash flow by divisions in Q3

Curtailments
of capacity
% of the
capacity
23 October 2015

Pulp price development
Source: FOEX
23 October 2015

Pulp sensitivity analysis
10% change in prices, impact on operational EBIT
10% increase in Impact*
Hardwood pulp** prices Positive EUR 45 million
Softwood pulp prices Positive EUR 50 million
Fluff pulp prices Positive EUR 20 million
Dissolving pulp prices Positive EUR 10 million
Market pulp price, total Positive EUR 125 million
* Impact on operational EBIT for the next twelve months. A decrease of pulp prices would have the opposite impact.
** Includes 550 000 tonnes from Montes del Plata

Pulp wood and saw log prices
Wood prices in Finland
Source: METLA

Paper for recycling prices
German RCP price development. free delivered
Source: Verband Deutscher Papierfabriken/Stora Enso
23 October 2015

Energy balance* Q3 2015
**) Remaining impact on non-hedged volume
*) Pulp. paper and board mills. Europe and overseas
Impact** on operating profit from
10% change in:
EUR million p.a.
Electricity market price ~1,2
Fossil fuel price ~4,1
39

Stora Enso Electricity procurement* Q3 2015
*) Pulp. paper and board mills. Europe and overseas
4040

Global Responsibility update
KPI results Q3 2015 – (1/2)
Focus Area
Key Performance
Indicator
Q3 2015
Target to be reached by end
of 2015
2014
People&Ethics
Health &Safety
TRI rate (Incidents per 1m
working hours)
10.4 8.8 12,5
LTA rate (lost time accidents per
1m working hours)
4.0 3.6 5,2
Human Rights
Extent of implementation of the
Group's approach to human
rights issues
By the end of the Q3 55% of the
preventive and remediation actions
were completed. The actions are
based on the UN Guiding Principles on
Business and Human Rights and
criteria created in collaboration with
DIHR.
Action plans in place by the end of Q2
2015 to address prioritized
assessment
findings of the Human Rights
Assessments, and for all assessment
findings to be addressed by the end of
2015.
100 %
Ethics &
Compliance
Employees' perception of
adherence to Code of Conduct
(YourVoice)
Positive trend in annual employee
survey.
69 %
Sustainable
Leadership
Leadership Index (YourVoice)
Positive trend in annual employee
survey
76,0
Responsible
Sourcing
% of supplier spend covered by
supplier Code of Conduct (CoC)
87%
90% of supplier spend covered by the
Supplier Code of Conduct by end of
2016
78%

Global Responsibility update
KPI results Q3 2015 – (2/2)
Focus Area Key Performance Indicator Q3 2015** Target 2014
Environment&Efficiency
Climate & Energy
Reduction of CO₂ emissions per saleable
tonne of pulp, paper and board (kg/t)***
-34%
-35%
by end of 2025
-27%
Process Water
Discharges
Reduction of volume per saleable tonne of
pulp, paper and board (m³/t)
1%
-6%
by end of 2015
-4%
Process Water
Discharges
Reduction of Chemical Oxygen Demand
(COD) per saleable tonne of pulp, paper
and board (kg/t)
-2%
-7%
by end of 2015
-5%
42
* From baseline levels: year 2006 in CO₂ emissions, year 2005 in the volume (m³) of process water discharges, and year 2007 in the Chemical Oxygen Demand (COD)
levels of process water discharges. Historical figures recalculated due to changes in baseline or data completion.
** Q3 performance includes July and August. The Q3 performance will be completed with September performance in Full Year Results for 2015.
*** Covering direct fossil CO₂ emissions from production and indirect fossil CO₂ emissions related to purchased electricity and heat (Scope 1 and 2).
ENVIRONMENTAL PERFORMANCE COMPARED TO BASELINE LEVELS*

Result q3 2015_web

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