Stora Enso in the digital world Teemu Salmi CIO and Head of digitalisation Stora Enso

Teemu Salmi

Stora Enso in brief A leading provider of renewable solutions Some 25 000 employees in 35 countries Sales in 2016: EUR 9.8 billion 25 000 35 Consumer Board Biomaterials Wood Products Packaging Solutions Paper

The renewable materials company – our target Everything that’s made with fossil-based materials today can be made from a tree tomorrow

Transformation journey continues 2016: Growth businesses 67% of sales and 76% of operational EBIT 30% 67% Consumer Board Packaging Solutions(1) Wood Products Biomaterials Paper(2) Other & eliminations EBIT 2006 EBIT 2016 38% 76% (1) In 2006 included in Consumer Board (2) In 2006 includes merchants

Global megatrends drive the world’s demand for renewable materials Global warming Growing population Urbanisation Changing lifestyles Digitalisation Growing middle class Eco-awareness Important enablers for digitalisation: Mobility Capital

Strategy for transformation continues SUSTAINABLE PROFITABLE GROWTH Customer insight Developing offerings according to customers’ requirements to create value and growth, with sales excellence. Stora Enso’s strategy is about sustainable profitable growth based on customer insights and innovation, supported by structured processes and motivated employees Digitalisation an enabler to increase the speed of transformation Innovation Focus on bio-based materials and chemicals, digitalisation, intelligent packaging and new packaging solutions. Structured processes Clear roles and responsibilities, standardised and harmonised working methods, operational excellence. Motivated employees Focus on inspiring leadership, good communication, performance management and target setting.

Digitalisation will: Expand new business possibilities Increase efficiency and productivity Raise the motivation and curiousness among the employees Bring innovation to new levels Attract the right staff for the future

> 50 years automation > 3 years digitalisation Early adopter > 50 years automation > 3 years digitalisation

Digitalisation strategy for focus and execution Production Stability Production Efficiency Supply Chain Efficiency Product Management & Development Industrial Digitalisation Digital Services and Customer Engagement Internal Business Process Digital Products and Service Portfolio (Extending Offering) New Business Models (Ecosystems) Efficiency Quality

Stora Enso’s Digital Fund 62 projects ongoing 11 Robotics Processes this year Predictive analytics increasing yield

Some digital examples

Intelligent packaging Connecting packages, products and value chains

Solutions and benefits Supply Chain Automated transactions Accurate real-time information Reduction of errors Condition tracking Data for process optimizations Brand Protection Product traceability Proof of authenticity Anti-counterfeiting Anti-tampering Customer Engagement Individual marketing: new channels/surfaces Real-time consumer feedback Consumer behavior analysis Improved repeat sales and brand loyalty

Innovation never happens in isolation - Stora Enso Accelerator program Sulapac Executive program to develop understanding and knowledge within our strategic competencies 1 Doing, living, and acting entrepreneurship side-by-side with real startups 2 LOOP Collective Crunch Co-development with start-ups of solutions in the area of digitalization 3 Top Data Science Trä Kronor

“Om man vägrar att se bakåt och inte vågar se framåt, så måste man se upp” Tage Danielsson