FSC® conference Packaging for Forests

13th of May 2014 at the Interpack trade fair, Duesseldorf

Stora Enso in the Chinese Market

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Stora Enso in brief

Stora Enso is the global rethinker

of the paper, biomaterials,

packaging and wood products

industry.

We always rethink the old and

expand to the new to offer our

customers innovative solutions

based on renewable materials.

• Approximately 28 000 employees

worldwide

• Sales 2013 EUR 10.5 billion

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Strongest growth in packaging will be in Asia – Increasing demand of consumer board in China

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CAGR

0,2 %

CAGR

3,5 %

CAGR

1,4 % CAGR

4,6 %

CAGR

3,3 %

CAGR

6,9 %

Asia

Middle East

& Africa

Eastern

Europe

Western

Europe North

America

South

America

Fibre-based consumer

board consumption CAGR

China 9%

Pakistan 9%

India 6%

Middle East 4%

2010-2020

Million tonnes

Source: Pöyry and Stora Enso

6,2

6,3

3,8

4,4

6,0

11

,6

0,5

0,7

0,9

1,5

1,1

1,5

Urban households and private consumption, 2012-2022

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Source: McKinsey

Main products Stora Enso delivers to the

expanding consumer market in China

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Cosmetics Food

Beverage Electronics

Strong presence in China

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Shanghai

Guangxi

Core plants

Inpac

Growth projects

Current growth projects

Hong Kong

Paper Mills

• Suzhou fine paper mill with 550 employees

• Dawang magazine paper mill with 220 employees

Paper mills

Beijing, Shanghai, Guangzhou, Shenzhen, Hong Kong

• 5 Sales offices covering all over China

• 50 employees

• World-class pulp and paperboard

• Fiber from self-managed eucalyptus plantations

• Total investment EUR 1.6 billion

• 1,080 employees

• Focus on consumer packaging

• Serving international brand owners

• Four plants in China and one in India

• 2,400 employees

• Business development, sales and M&A have teams

located in Hong Kong 16 employees

• Stora Enso China head office in Shanghai 20 employees

Guangxi

Inpac

Hong Kong & Shanghai

Beijing

Stora Enso investment in Guangxi

1. Establish a world-class pulp and

paperboard integrate with fibre from

self-managed eucalyptus plantations

2. Build a long-term profitable business

by meeting the growing demand in

China and neighbouring markets

3. Apply responsible practices in the

whole supply chain; forest operations,

pulp and board production

4. Industrialization Guangxi forestry,

Beibu Gulf economy development and

China pulp and paper modernization

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New set up: Consumer board machine operational in the beginning of 2016,

followed by chemical pulp mill construction later.

• Stora Enso has been establishing a sustainable

eucalyptus wood base in Guangxi since 2002 and

is currently operating 90,000 ha of forest

plantation land

• Certifications obtained for

– FSC® Forest Management and Chain of Custody

– CFCC Forest Management and Chain of Custody

– OHSAS 18001

– ISO 14001 and ISO 9001

• Intensive sustainability program and

Environmental and Social Action Plan

• Cooperation with local authorities, national and

international universities and organizations to

define positive development

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Stora Enso investment in Guangxi