Stora Enso Oyj - Company Announcement

Stora Enso’s Capital Markets Day: Solid performance, accelerated transformation

Stora Enso is hosting its Capital Markets Day in London today. The focus is on
strategy, performance, and the biomaterials and wood products businesses.
Stora Enso’s CEO Karl-Henrik Sundström says: “Stora Enso’s asset transformation
is nearly completed and our focus is now on sales and innovations. We have
successfully completed several major investments recently. We are now gradually
decreasing our capital expenditure (excluding investments to biological assets)
to the level of depreciation. In 2017, the estimated capital expenditure will be
EUR 600–650 million, including EUR 100 million for biological assets.

Our consumer board mill in Beihai, China started up in May 2016, and is ramping
up ahead of plan. We expect it to reach EBITDA break-even in the first quarter
of 2018. Our kraftliner mill in Varkaus, Finland started up in October 2015, and
reached EBITDA break-even during the third quarter of 2016. We expect it to
reach EBIT break-even in the second quarter of 2017.

Majority of our portfolio is aimed at growth, and the sales of our growth
businesses – Consumer Board, Packaging Solutions, Biomaterials and Wood Products
– are increasing steadily. For our Paper division, the strategy is maximum cash
generation, and currently it is well above the long term target. All divisions
contribute to the cash flow, which supports our transformation into a renewable
materials company. Our balance sheet is strong and we have been able to pay
stable dividends also during our transformation period.

Today, our Capital Markets Day concentrates on two of our growth businesses. Our
Biomaterials division focuses on strengthening its current pulp business. Demand
for pulp keeps growing, especially in the segments selected in Stora Enso
strategy. Stora Enso is also creating new platforms for growth with investments
in extraction and separation technologies for wood fibres. For instance lignin
as phenol replacement offers us big potential with attractive margins.

Our Wood Products division has transformed from a classic sawn producer into a
leading provider of innovative wood-based solutions. As a leader in wooden
building components and systems, we are in a good position to drive growth.”

Live webcast from Stora Enso’s Capital Markets Day starts at 15.00 EET (13.00 UK
time). You are welcome to follow the presentations at http://edge.media
-server.com/m/p/ddmehd62.

For further information, please contact:
Ulrika Lilja, EVP Communications, tel. +46 72 221 9228

Investor enquiries:
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 40 763 8767
Stora Enso is a leading provider of renewable solutions in packaging,
biomaterials, wooden constructions and paper on global markets. Our aim is to
replace fossil based materials by innovating and developing new products and
services based on wood and other renewable materials. We employ some 26 000
people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion.
Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq
Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY) on the International OTCQX over-the-counter market.
storaenso.com (http://www.storaenso.com/)

STORA ENSO OYJ
For further information, please contact:
Ulrika Lilja
EVP Communications
tel. +46 72 221 9228

Investor enquiries:
Ulla Paajanen-Sainio
SVP, Investor Relations
tel. +358 40 763 8767