Annual General Meeting

1 April 2009

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.

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CEO’s report

2008 summary
• First half – High cost inflation – Stable markets • Second half – Weakening markets – Inflation still a burden • Our actions – Cut capacity – Preserve cash flow

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Paper deliveries in Western Europe
2000–2/2009
Tonnes
4 300 000 4 100 000 3 900 000 3 700 000 3 500 000 3 300 000 3 100 000 2 900 000 2 700 000 2 500 000 01.00 07.00 01.01 07.01 01.02 07.02 01.03 07.03 01.04 07.04 01.05 07.05 01.06 07.06 01.07 07.07 01.08 07.08 01.09
Sources: PPPC (Magazine paper and Newsprint) Cepifine (Fine Paper) Annual General Meeting 1/4/2009 5

Income statement
Continuing operations
EUR million Sales EBITDA excl. NRI and fair valuations Operating profit excl. NRI and fair valuations Operating profit / loss (IFRS) Net profit / loss excl. NRI Net profit / loss ROCE excl. NRI and fair valuations, % ROCE excl. NRI, % EPS excl. NRI, EUR EPS, EUR 2008 11 028.8 1 027.2 388.4 -726.6 142.8 -679.0 4.1 3.4 0.18 -0.86 2007 11 848.5 1 569.9 861.1 176.9 747.3 12.8 8.6 11.3 0.94 0.01 Change EUR million -819.7 -542.7 -472.7 -903.5 -604.5 -691.8 -4.5 -7.9 -0.76 -0.87 Change % -6.9 -34.6 -54.9 n/m -80.9 n/m -52.3 -69.9 -80.9 n/m

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Change in EPS (Continuing operations)
2007–2008, including closed units
EUR million
1.0 0.9 0.8

excluding non-recurring items

+0.94*

+0.10
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 2007

-0.17

-0.27

-0.12 -0.11 +0.12

+0.09

-0.03

-0.05 +0.18

Sales Price

Sales FX

Sales Volume

Energy

Fibre

Fixed Costs

Depr

Assoc

Other

2008

* 2007 includes 0.32 EUR impact of fair valuations and related items, which include Total Return Swaps (TRS), synthetic options and CO2 emission rights, and fair valuations of biological assets mainly related to associated companies’ forest assets Annual General Meeting 1/4/2009 7

Total cost comparison, 2008 vs 2006
Cost savings in 2008 compared to 2006 cost level • Personnel 10%  +1.5 margin points • Other fixed 18%  +2.3 margin points • Production services 14%  +1.3 margin points • Depreciation 22%  +1.5 margin points • TOTAL 15%  +6.5 margin points Cost increase in 2008 compared to 2006 cost level • Fibre 22%  -4.6 margin points • Energy 17%  -1.3 margin points • Chemicals 14%  -1.2 margin points • TOTAL 19%  -7.0 margin points Sales volume & price 4%  -3.3 margin points

Total costs difference 2006 vs 2008 -3.8 margin points
Total costs in million Euros. / Continuing operations = Excluding discontinued operations (SENA, Merchants) Excluding non-recurring items Annual General Meeting 1/4/2009 8

Capital structure
EUR million Fixed assets Associated companies Operative working capital Non-current interest-free items, net Operating capital Net tax liabilities Capital employed Equity Minority Interest Net interest-bearing liabilities Financing total Debt/Equity ratio 31 Dec 08 6 853.7 1 042.5 1 674.7 -513.6 9 057.3 -282.8 8 774.5 5 594.0 56.5 3 124.0 8 774.5 0.56 31 Dec 07 8 493.2 1 154.5 2 084.4 -493.3 11 238.8 -618.6 10 620.2 7 593.6 71.9 2 954.7 10 620.2 0.39 Change EUR million -1 639.5 -112.0 -409.7 -20.3 -2 181.5 335.8 -1 845.7 -1 999.6 -15.4 169.3 -1 845.7 0.17 Change % -19.3 -9.7 -19.7 4.1 -19.4 -54.3 -17.4 -26.3 -21.4 5.7 -17.4 43.5

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Reclassification of equity components
• Incorrect classification related to the cancellation of repurchased shares in 2001, repeated in 2002–2006 • EUR 1 512 million reclassified from retained earnings to share premium account • No impact on the total equity in the Parent Company or in the Group

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Operating cash flow
Continuing operations, rolling 4 quarters
EUR million
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08

Cash flow from operations excl provision payments

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Actions
1. Divestment of SENA and Papyrus 2. Reduction short term debt 3. Removal Russian wood dependency 4. Two restructuring programs – Support for employees made redundant 5. Reduction of Capital Expenditures 6. Pricing push 7. Drive for cash

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Balance Sheet
Net Debt / EBITDA
5,0x 4,5x 4,0x
0.6

Debt/Equity
0.8 0.7

3,5x 3,0x 2,5x 2,0x 1,5x
0.2 0.5 0.4 0.3

1,0x 0,5x 0,0x 2004 2005 2006 2007 2008
0.1 0.0 2004 2005 2006 2007 2008

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Balance Sheet without Actions
(Pro Forma)
Net Debt / EBITDA
5.0X 4.5X 4.0X 3.5X 3.0X 2.5X 2.0X 1.5X 1.0X 0.5X 0.0X 2004 2005 2006 2007 2008

Debt/Equity
1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 2004 2005 2006 2007 2008

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Year 2009

Safeguard cash flow & customer volumes
Newsprint and Book Paper Magazine Paper Fine Paper Wood Products

Order flow to lowest cost machine • independent of country • also within a country
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Changes in selected cost components 2007 to 2008
Energy Costs %
35 25 15 5 -5 -15 -25 FI DE SE SE (SEK) (EUR)*

Personnel Costs %
35 25 15 5 -5 -15 -25 FI DE SE SE (SEK) (EUR)*

Wood Costs %
35 25 15 5 -5 -15 -25 FI DE SE SE (SEK) (EUR)*

Underlying costs for paper and board (incl pulp) Euro per tonne, excluding non-recurring items Excluding discontinued (SENA, Merchants), closed and divested operations FX-rates in 2007 / 2008 / March 2009: EUR/SEK 9,2517 / EUR/SEK 9,6280 / EUR/SEK 10,9565 * 2008 cost level in SEK converted to EUR with current FX-rate (EUR/SEK 10,9565) Annual General Meeting 1/4/2009 17

Northern pulp lines are at great risk
Cost Competitiveness in Rotterdam (BHKP) - Hard Wood
2008/IV EUR/t
Net Sales Price = FOEX Reference Market Price – 13 % Discount Operating rate 100% 1 USD=0.744 EUR 1 EUR=1.344 USD

900 800 700 600 500 400 300 200 100 0 0
Source: Pöyry Annual General Meeting 1/4/2009 18

Net Sales Price July 2008 464 EUR/t

Net Sales Price March 2009 341 EUR/t

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

Cumulative capacity, 1000 t/a

Finland
• Industry situation in Europe traumatic • Finland in a dangerous situation
– total cost increase in Finland 11% from 2006 to 2008, almost double compared to the total cost increase of the Group

• The problem is too big for anybody to solve alone • Now it is time to work together • We all win or we all lose

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Top 15 producers of chemical pulp

International Paper Stora Enso Domtar APP/Sinar Mas VCP Georgia-Pacific Nippon Paper Group RGM/APRIL Botnia Oji Sappi Arauco Suzano Weyerhaeuser UPM

Capacity 1 000 t/a

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

Source: JPsmartterminal Includes SW and HW, bleached and semi-bleached, kraft, sulfite, semichemical

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2009

• Pricing quality and cash preservation • CAPEX reduced to EUR 400 million (EUR 700 million in 2008) • Order flow to lowest cost production units • Temporary lay-offs & other cost measures must continue

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Our Promise – Vision and Mission
Vision: • Today we as a company, people and planet face new challenges never before seen. The world needs a new approach to materials. Mission: • We will win with solutions based on renewable materials.

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Carbon footprint of beverage cartons and plastic bottles in Spain
kg CO2 equivalents per 1000 L beverage carton

200 175 150 125 100 75 50 25 0 1 L PET bottle 1 L HDPE 1 L aseptic brick carton
Source: IFEU Carbon Footprint of milk and juice containers in Spain, 2008 The carbon footprint calculation uses a “cradle-to-grave” approach. It covers all relevant process steps from raw material sourcing to the final waste treatment or recycling of the used packaging. Certain allocation assumptions have been made in the study. Annual General Meeting 1/4/2009 23

Paperboard food tray

Long-term Demand Growth by Region through 2025
Paper and Paperboard
Demand growth, %/a

7
India

6 5 4 3 2 1 0 -1 0
Source: Pöyry Annual General Meeting 1/4/2009 25

China

Russia Middle East Africa Eastern Europe Latin America Rest of Asia Average 1.9%/a Oceania Western Europe

North America

Japan

20

40

60

80

100

Share of consumption in 2006, %

Towards the future with Biofuel development

Our planet

We do not convert native forests into plantations.

We protect rainforest.

Sustainably managed forests remove CO2 from the atmosphere and our products are carbon storages.

All our products are 100% recyclable.

Through the storm
Past two years • Unforeseen challenges • Secure vital strengths • Capable, loyal, resilient personnel 2009 • Traumatic weakening of markets • Strong cash flow, pricing quality • Cost savings efforts Future • Fibre-based, recyclable packaging • Cost-competitive pulp from plantations • Stora Enso more efficient, more focused, ready for change
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Distribution of funds

Distribution of funds
• The Board of Directors proposes to the AGM that EUR 0.20 per share, a maximum aggregate of EUR 157 907 699.80, be distributed to the shareholders from the share premium fund of the parent company. • The distribution shall be paid after the Finnish National Board of Patents and Registration has given its consent to the decrease of the share premium fund which is expected to take place in July 2009 at the earliest. • The Board of Directors proposes that it will be authorised to decide on record date and payment date after the consent. • Estimated record date 31 July 2009 • Estimated payment date 10 August 2009

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Proposal by the Nomination Committee

Remuneration for the Members of the Board of Directors
At the initiative of the BOD, the remuneration is proposed to be reduced by 50% for the year 2009.
Proposal for remuneration 2009 Chairman Deputy Chairman Members EUR 67 500 EUR 42 500 EUR 30 000

• The Nomination Committee also proposes that 40% of the remuneration be paid in Stora Enso Series R shares purchased from the market.

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Remuneration for the Members of the Board Committees
At the initiative of the BOD, the remuneration is proposed to be reduced by 50% for the year 2009.
Proposal for remuneration 2009 Financial and Audit Committee Chairman Members Remuneration Committee Chairman Members EUR 5 000 EUR 3 000 EUR 10 000 EUR 7 000

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Proposed Members of the Board of Directors
• Gunnar Brock • Claes Dahlbäck • Dominique Hériard Dubreuil • Birgitta Kantola • Ilkka Niemi • Juha Rantanen • Matti Vuoria • Marcus Wallenberg • Hans Stråberg

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Hans Stråberg
• President and CEO of AB Electrolux – Holds a Master’s degree in Science and Engineering from the Chalmers University of Technology in Gothenburg • Board Member of Roxtec, Swedish Engineering Industries, Confederation of Swedish Enterprise and AB Electrolux

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Appointment of Nomination Committee
Duties • The Nomination Committee proposes that the AGM appoint a Nomination Committee to prepare proposals concerning (a) the number of members of the Board of Directors, (b) the members of the Board of Directors, (c) the remuneration for the Chairman, Vice Chairman and members of the Board of Directors and (d) the remuneration for the Chairman and members of the committees of the Board of Directors. Members: • The Chairman of the Board of Directors • The Vice Chairman of the Board of Directors • Two members appointed by the two largest shareholders (one each) as of 1 October 2009 Remuneration for 2009 • EUR 3 000/year (payable only to non-board members)
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Remuneration

Remuneration for the Members of the Board of Directors
At the initiative of the BOD, the remuneration is proposed to be reduced by 50% for the year 2009.
Proposal for remuneration 2009 Chairman Deputy Chairman Members EUR 67 500 EUR 42 500 EUR 30 000

• The Nomination Committee also proposes that 40% of the remuneration be paid in Stora Enso Series R shares purchased from the market.

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Remuneration for the Members of the Board Committees
At the initiative of the BOD, the remuneration is proposed to be reduced by 50% for the year 2009.
Proposal for remuneration 2009 Financial and Audit Committee Chairman Members Remuneration Committee Chairman Members EUR 5 000 EUR 3 000 EUR 10 000 EUR 7 000

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Proposed Board Members

Esitys hallituksen jäseniksi
• Gunnar Brock • Claes Dahlbäck • Dominique Hériard Dubreuil • Birgitta Kantola • Ilkka Niemi • Juha Rantanen • Matti Vuoria • Marcus Wallenberg • Hans Stråberg

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Auditor

Election of Auditors
• The Board of Directors proposes to the AGM that Authorised Public Accountants Deloitte & Touche Oy continue as the statutory auditor of the Company until the end of the following AGM.

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Appointment of Nomination Committee

Appointment of Nomination Committee
Duties • The Nomination Committee proposes that the AGM appoint a Nomination Committee to prepare proposals concerning (a) the number of members of the Board of Directors, (b) the members of the Board of Directors, (c) the remuneration for the Chairman, Vice Chairman and members of the Board of Directors and (d) the remuneration for the Chairman and members of the committees of the Board of Directors. Members: • The Chairman of the Board of Directors • The Vice Chairman of the Board of Directors • Two members appointed by the two largest shareholders (one each) as of 1 October 2009 Remuneration for 2009 • EUR 3 000/year (payable only to non-board members)
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Share premium fund and reserve fund

Decrease of the share premium fund and the reserve fund of the parent company
• The Board of Directors proposes that: – the share premium fund as shown in the balance sheet of the parent company as per 31 December 2008 will be decreased by an amount of EUR 1 688 145 310.08 – the reserve fund as shown in the balance sheet of the parent company as per 31 December 2008 by an amount of EUR 353 946 990.12 • The decreased amounts shall be transferred to the invested nonrestricted equity fund. • The decrease of the share premium fund and the reserve fund become effective after the Finnish National Board of Patents and Registration has given its consent to the decrease.

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Proposal by shareholders Matti Ikonen, Matti Liimatainen and Annina Käppi

Proposal to amend Stora Enso’s policy on old-growth forests
Sini Harkki April 1st 2009 Marina Congress Center

Value of intact forests
• Less than 5% of Finnish forests are in natural state • Loss of intact forests is a global concern
– Biodiversity – Adapting to climate change and mitigating it – Ecosystem services

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Stora Enso’s policy on old-growth forests
“We do not purchase wood and fibre from protected areas or areas in the official process of designation for protection, old growth forests and high conservation value forests defined in national stakeholder processes unless the purchases are clearly in line with the national conservation regulations. “
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Old-growth forests in Finland
• According to scientific estimates approximately half are protected • Forests whose structure has not been significantly changed by forestry or are in a natural state • Significant to threatened species and also to other uses of forests • In Finnish North-Boreal zone the amount of protected forest in natural state is less than 7%
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Old-growth forests in Forest Lapland

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Old-growth forests in Forest Lapland
• Finnish Association for Nature Conservation, Greenpeace, Luonto-Liitto 2006 • Thousands of findings of threatened species • Most of the forest in the areas is old-growth • Even medieval trees can be found, natural structure • Significant to recreation and forest based livelihoods because of their wilderness-like nature
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Old-growth forests in Forest Lapland
• In 2007 more than 250 researchers appealed for these forests to be protected, including more than 70 professors

“The natural development of Lapland's forest ecosystems is so slow that logging in its remaining old natural forests cannot be considered a sustainable use of natural resources… It can be reasonably stated that logging of natural forests causes irreversible change of habitat, and Annual General Meeting 1/4/2009 59 destroys an important part of our national

Stora Enso’s policy on old-growth forests
• AGM 2007: Stora Enso asked Metsähallitus to inventory the natural values of the contested areas before logging would be re-started

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Logging continued
• No reports on the inventories or ecological values have been published • Metsähallitus classified the areas in three classes but presented no evidence or criteria: 1) natural state, 2) ”areas with earlier forestry operations”, 3) natural state, with ”no special nature values”

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Logging in 2009
• In Ahmatunturi and Talluskotavaara in oldgrowth forests that were classified ”in natural state” by Metsähallitus itself (classes 1 and 3). ->How can the logging of natural state oldgrowth be in line with SE’s principles? ->Why can SE/MH not publish the reports on the inventories?
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Logging in 2009
• Over 300 years old trees logged • Completely natural state forest • Forests important to other livelihoods and local people • In a situation where contractors have been laid off and wood storage piles are filled

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Stora Enso’s policy
• Trying to get around it: ”individual old trees”, ”trees are 80 year old, some 140-200 years”

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Stora Enso’s policy
• Misusing FSC Controlled Wood as proof of the sustainability of certain operations – not allowed by the FSC • Does not take into account ecological data or researchers’ appeals • Does not consider even forests classified as ”natural state” by Metsähallitus valuable enough
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The proposal
“We propose that Stora Enso Oyj no longer procure from the Finnish state enterprise Metsähallitus any wood from forest areas in forest Lapland that nature conservation organisations have designated as rare contiguous wilderness areas formed by old-growth forests, bogs and fells.”
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The proposal
• Ecological data supports the decision • Finally a real environmental policy decision • In the current wood procurement situation, there should be no financial impediments to taking such a responsible decision

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We can afford it
• Proposal concerns 30,000 ha of forest land outside protected areas • This is less than 0,8 % of Lapland’s forest land outside protected areas • 10,2 million m3 of Lapland’s tree growth is in forestry use and only 1,6 million m3 in protected areas • Logging opportunities in young forests are growing and capacity is decreased at the same time
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Conclusions
• 2010 is the year of biodiversity and natural forests (CBD, EU Countdown) • No financial impediments to sustainable policy on old-growth forests • Stora Enso has a sustainable policy in the Saami Homeland, why not in other oldgrowth areas as well?

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Stora Enso’s response to the proposal regarding protection of biodiversity in Forest Lapland

Stora Enso is committed to protecting biodiversity
• Stora Enso is committed to protecting old-growth forests • We do not buy wood from forests which have been protected as oldgrowth in a national stakeholder process • We have supported many multi-stakeholder processes in northern Finland since 1996 to protect old-growth forests • Already 43% of the forests (0.5 million hectares) in Forest Lapland are protected • According to the Finnish Ministry of Environment there is no need for further protection areas in Forest Lapland

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Stora Enso’s position
• Stora Enso can receive wood from the areas addressed by the environmental organizations – Not protected as valuable old-growth forests in the national stakeholder processes • We encourage all relevant stakeholders to participate in the dialogue – The next opportunity to make a difference is to take part in the Metsähallitus’ Natural Resource Planning process starting in fall 2009

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Thank You