1. Innovation in Stora Enso. Timo Laipio December, 2006

2. Timo Laipio - December, 2006Innovation and Success2 Innovation and success. Stora Enso. Evolution and current status. R + D. New Business innovations. Stora Enso Ventures.

3. Timo Laipio - December, 2006Innovation and Success3 Stora Enso in Brief A world leader –16.9 million tonnes of paper and board –7.7 million m 3 of sawn and processed wood products Four main divisions –Stora Enso Publication Paper, Stora Enso Fine Paper, Stora Enso Packaging Boards and Stora Enso Forest Products Sales EUR 13.2 billion Approximately 46 000 employees in more than 40 countries Market capitalisation EUR 9.3 billion (31 Dec 2005) Shares listed on Helsinki, Stockholm and New York stock exchanges

4. Timo Laipio - December, 2006Innovation and Success4 Major Structural Changes Gruvön Mill Billerud Sale of power assets outside mills Divestment of Finnish forest holdings Divestment of Swedish forest holdings Divestment of Finnantara plantation Sale of Linghed Sawmill Sale of Grycksbo Mill Sylvester acquisition Intercell acquisition Scaldia Paper acquisition Papeteries de France acquisition Schneidersöhne acquisition Consolidated Papers acquisition Stora Enso merger Start-up of Veracel Pulp Mill (joint venture) Sale of Celbi Pulp Mill Sale of Pankakoski Mill Closing of Hammarby Mill 1998 1999 2000 2002 2004 2005 2006 Sale of Dalum Mill Sale of Tervakoski Mill Vinson acquisition Sale of Wolfsheck Mill

5. Timo Laipio - December, 2006Innovation and Success5 New Business Innovations Pharma SHR Child resistant, senior friendly compliance carton for pharmaceutical business Machine to erect the carton and pack the drugs in it

6. Timo Laipio - December, 2006Innovation and Success6 DBS and New DBS-DVD Flexible and efficient packaging concept for CD’s and DVD’s Business model includes both selling packaging lines and offering packaging services New Business Innovations

7. Timo Laipio - December, 2006Innovation and Success7 PackAgent A software enabling product authentication and traceability Based on unique ID on an item (RFID, barcodes etc) Successful pilot with Orion Pharma and their selected distribution partners New Business Innovations

8. Timo Laipio - December, 2006Innovation and Success8 Extending packaging innovation to Solutions and Services AirTight Packaging AirTight CupContract packaging service to brand owners based on the AirTight Cup concept developed in InnoCentre

9. Timo Laipio - December, 2006Innovation and Success9 Stora Enso Ventures Stora Enso Ventures, a new tool for: High risk equity investments to innovative high potential businesses Early access to strategic technologies Offering a business culture for attracting innovative and entrepreneurial persons

10. Timo Laipio - December, 2006Innovation and Success10 Design Force AB Stora Enso Ventures invested in Design Force in June 2005 Re-Board manufacturing line started-up in Q2/2006 in Norrköping, Sweden Design Force manufactures and converts new fiber-based panel material Re-Board Re-board is a very competitive new material with wide application area: Light and strong material Environmentally friendly (recyclable) Good graphic properties

11. Timo Laipio - December, 2006Innovation and Success11 Palwaste Recycling Palwaste Recycling has developed technology for treatment of polyaluminium laminates. The technology separates the aluminium and organic materials so that aluminium can be re-used in the aluminium industry and the energy content of organic materials can be extracted Polyaluminum laminates emerge as hard-to-treat rejects when the fiber content of certain beverage cartons is re-used by paper and board industry It is important for Stora Enso to develop a solution that enables efficient total recycling of beverage cartons. The involvement in Palwaste Recycling stresses Stora Enso’s commitment in sustainable operations Stora Enso Ventures invested in Palwaste Recycling in October 2006

12. Timo Laipio - December, 2006Innovation and Success12 Information as it happens: www.storaenso.com