1. Stora Ensos Performance in Q2 Esko Mäkeläinen, CFO 22 August, 2003

2. 22 August 20032 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 Groups 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 Groups 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 Groups 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 Groups principal geographic markets or fluctuations in exchange and interest rates.

3. 22 August 20033 Highlights Profits negatively impacted by: –Geopolitical factors and subdued economic activity across global markets –Production losses and fixed cost increases related to Midsummer holiday stoppages –Direct and indirect effects of declining US dollar I/2003II/2003 Sales, EUR million 3 0993 057 Operating Profit, EUR million 211.1106.7 EPS, EUR 0.100.07 Cash EPS, EUR 0.430.41 Debt/Equity0.460.47 There were no non-recurring items in the periods under review

4. 22 August 20034 Main Events Veracel –Decision was taken by associated company Veracel to construct a 900 000 tonnes p.a.pulp mill in Bahia, Brazil, based on own eucalyptus –Stora Enso is entitled to 50 % of the output, to be used ascaptive pulp –Production start up: mid 2005 Langerbrugge –Successful start up of worlds largest newsprint machine of 400 000 tonnes – based entirely on recovered paper –Main measures in Newsprint asset restructuring have now been taken

5. Financial figures

6. 22 August 20036 EUR million2002II/02H1/02 H1/03 I/03 II/03 Sales12 7833 2336 4626 1563 0993057 EBITDA 1) 2 1725181 121900501400 Operating profit 1) 926190464318211107 Profit before tax-34320639521612987 Net profit-2221382991428556 EPS, EUR 1) 0.570.150.300.160.100.07 EPS, basic, EUR -0.250.12 0.330.160.100.07 CEPS, EUR 1) 1.970.481.030.840.430.41 ROCE, % 1) 7.15.66.95.37.13.6 Debt/Equity0.370.460.460.470.460.47 Summary Financials 1) excluding non-recurring items

7. 22 August 20037 Currency Hedging Operational cash flow hedges had a positive impact of EUR 34.8 million in Q2/2003 Major net cash flows (2002): USD +800 GBP +800 (EUR million equivalent)

8. 22 August 20038 Indirect Impact of Euro Strength Imports increasing somewhat to Europe Packaging Boards experiencing increased competition versus US dollar based suppliers in its overseas sales US dollar price increases in magazine grades are supported by stronger Euro, but mitigated by increased imports from Europe

9. 22 August 20039 EUR million II/02III/02IV/02 I/03 II/03 Net interest-54.8-53.0-49.3-34.6-51.5 Foreign exchange profit/loss10.913.20.42.97.9 Valuation of financial instruments (non cash)-16.1-20.0-11.0-44.130.0 Other financing items16.03.6-0.9-5.52.3 Total-44.0-56.2-60.8-81.3-11.3 Net Financial Items

10. 22 August 200310 Change in EPS I/2003 vs II/2003 EUR 0.10 0.01 -0.05 0.01 0.07 0.05 -0.05

11. 22 August 200311 EPS by Quarter EUR excluding non-recurring items

12. 22 August 200312 Change in EPS 1-6/2003 vs 1-6/2002 EUR 0.30 0.09 -0.01 0.04 0.16 -0.01 -0.22 -0.03 excluding non-recurring items

13. 22 August 200313 ROCE % Target > 13% over the cycle excluding non-recurring items WACC 9.5% before tax ROCE target 13%

14. 22 August 200314 Debt/Equity Target < 0.8

15. 22 August 200315 Share Buy-Back Programme Current programme approved by 2003 AGM to continue through 19 March 2004. Allows repurchase up to: A shares9 100 000 R shares34 000 000 Status through 08 August 2003: Number of Average % of Shares shares purchased: purchase price: authorisation A shares5 000EUR 9.690.05 R shares17 004 400EUR 9.2750.0 2001200231 March, 2003 Total shares in issue:906 753 299899 778 299864 187 499

16. 22 August 200316 Capital Expenditure and Depreciation Capital expenditure Capital expenditure as % of sales EUR million Depreciation Goodwill amortisation

17. 22 August 200317 Deliveries 2002 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Publication Papers 6 807 1 638 1 636 1 703 1 830 1 654 1 678 Fine Papers 3 432 874 866 859 833 885 895 Packaging Boards 2 909 711 749 734 715 756 781 Paper and Board Total 13 148 3 223 3 251 3 296 3 378 3 295 3 354 Timber 5 112 1 203 1 344 1 252 1 313 1 283 1 644 Production Publication Papers 6 796 1 686 1 651 1 745 1 714 1 739 1 663 Fine Papers 3 477 888 866 876 847 894 889 Packaging Boards 2 973 751 742 740 741 788 763 Paper and Board Total 13 246 3 325 3 259 3 361 3 302 3 421 3 315 Timber 5 157 1 235 1 288 1 277 1 357 1 406 1 648 Deliveries and Production 1 000 tonnes/m3

18. 22 August 200318 Curtailments 1000 tonnes2002 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Publication Papers 874 249 250 188 187 123 143 Fine Papers 274 49 58 73 94 64 32 Packaging Boards 109 37 18 10 44 15 25 Paper and Board Total 1 257 335 326 271 325 202 200 Europe 1 037 249 218 248 322 195 158 USA 220 86 108 23 3 7 42 Paper and Board Total 1 257 335 326 271 325 202 200

19. North America H1 2003

20. 22 August 200320 USD million2002H1/02 H2/02 H1/03 Sales 1 871 884 987933 EBITDA 1) 15350 10339 EBITA 1) -155 -105 -50-98 Cash flow after Capex 2) 138 25 113-71 Deliveries (1 000 tonnes) 2 655 1 229 1 4261 345 Market-related downtime (1 000 tonnes) 233 1942649 Financial Results in North America 1) excluding non-recurring items 2) excluding forest asset sale

21. 22 August 200321 North American Printing Paper Prices *Note: Newsprint prices in U.S. $ per metric tonne USD per short ton Monthly Average Transaction Prices Source: RISI 950 750 705 875 665 695 625 440 495 855 710 690

22. 22 August 200322 Profit Enhancement Programme in North America Profit Enhancement Programme is proceeding according to plan –Kimberly Mill PM 96 and Biron Mill 26 rebuilds were successfully completed during Q2 2003 Workforce reduced by 20 % since year 2000 Permanent closure of Wisconsin Rapids 12; Biron 24 to close by the end of 2003 The programme will be completed in the mid 2005; from then onwards the EPS effect will be + 0.05

23. 22 August 200323 Further Cost Cutting Measures in North America Fixed costs in North America continue to be too high further cost-cutting steps will be taken These measures will be announced before the end of the third quarter 2003

24. Stora Enso Follows IAS Standards

25. 22 August 200325 What is IAS? International Accounting Standards (IAS) were created in the 1960s by Anglo Saxon Auditors who, on a voluntary and informal basis, tried to improve comparability on financial information In the 1970s the International Accounting Standards Committee (IASC) was created In 1995 an agreement was reached between IASC and the International Organisation of the Securities Commission

26. 22 August 200326 What is IAS? In 2001 the International Accounting Standards Board was formed and based its headquarters in London –more resources to develop standards –IASC Foundation led by Mr Paul Volcker –IASB chaired by Sir David Tweedie IAS standards will be compulsory from 2005 for stock listed companies in the EU. This will affect over 7,000 companies in Europe

27. 22 August 200327 How Stora Enso Adopted IAS Standards In 1998 Stora Kopparberg and Enso merged. Instead of conforming to Finnish Accounting Standards the company decided to adopt IAS In 2000 Stora Enso was listed on the NYSE. IAS remains the main standard in accounting but reconciliation is also made to US GAAP

28. 22 August 200328 Objective of the IASB To develop a single set of understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the various capital markets to make economic decisions.

29. 22 August 200329 What were the main changes from FAS to IAS? Preparations took about 6 months because of the recalculations for previous years The main changes were in the booking of: –business combinations (mergers and acquisitions) –pensions (IAS 26) –provisions (IAS 37) –leases (IAS 17) –investments in associated companies (IAS 28) –Impairment of assets (IAS 36)

30. 22 August 200330 Inventory movement effects Measurement principles (IAS 2) Inventories should be measured at the lower of cost and net realisable value Cost includes all costs to bring the inventories to their present condition and location Finished goods and work in progress include costs incurred so far in the process and the cost of raw materials Producing more than delivering increases inventory value thus increasing profit Result emphasises production over deliveries

31. 22 August 200331 Inventory movement effects Effects on Stora Enso Fixed production costs (such as direct labour and depreciation) are calculated based on normal operating rate Stora Enso has larger scale production stand stills during Midsummer and Christmas Generally inventories decline during these periods (demand does not fluctuate as much as production) Second and fourth quarter results therefore include fixed cost from previous periods (released to the period when products from inventory are sold)

32. 22 August 200332 Newly Adopted IAS Standards IAS 39 - Valuation of Financial Instruments –a derivative is a financial instrument –fair value is the amount for which an instrument could be exchanged –hedging instruments and effectiveness IAS 41 - Accounting of Biological Assets –current value of the assets at the end of the period –biological transformation comprises the processes of growth –harvest is the detachment of produce from a biological asset

33. 22 August 200333 Unrealised Financial Instruments IAS 39 entries There are two different ways of entering the valuation of unrealised financial instruments under IAS 39: Only in balance sheet until they have been realised (hedging instruments); Directly in profit and loss statement (non-hedging instruments)

34. 22 August 200334 Unrealised Financial Instruments IAS 39 entries The entries of the valuation of unrealised hedging instrument: Valuation losses are entered debiting other comprehensive income (OCI) directly in equity and crediting short term liabilities. Valuation gains are entered debiting short-term receivables and crediting OCI. Realised gains and losses of hedging instruments are entered against the item they have hedged in profit and loss statement.

35. 22 August 200335 Unrealised Financial Instruments IAS 39 entries The entries of the valuation of unrealised non-hedging instrument: Valuation losses are entered debiting financial items in profit and loss statement and crediting short term liabilities. Valuation gains are entered debiting short-term receivables and crediting financial items in profit and loss statement.

36. Outlook

37. 22 August 200337 Outlook Global economic activity remains muted In Europe advertising spending is still not increasing North American advertising spending is beginning to recover from the Iraq War-impacted levels Increasing imports affecting the supply/demand balance in the USA Consumer confidence in Asia is recovering from the temporary effects of SARS

38. 22 August 200338 Outlook (cont.) Overcapacity in Europe continues to negatively impact pricing in coated printing papers Uncoated fine paper and recovered fibre-based board prices under pressure in Europe Additional cost cutting measures within the company will be effected The Groups capital expenditure plans for 2003 and 2004 are being adjusted not to exceed the level of depreciation

39. 22 August 200339 Near-term Market Outlook Western Europe Price DemandComments Magazine Paper SC CMR Newsprint Fine Papers WFC WFU Packaging Boards Timber SC is expected to be stable No strong sign of improvement in demand Price pressure; producer stock remain high Demand will seasonally be slow; order books good; imports affecting prices Stable order book. Market related downtime mainly in recovered-fibre- based grades Oversupply in whitewood; redwood normal Demand slowly improving; D/S ratio imbalance puts pressure on prices

40. 22 August 200340 Near-term Market Outlook North America Price DemandComments Magazine Paper SC CMR Newsprint Fine Papers WFC Timber A modest recovery forecasted; some further price increases expected in H2 Some signs of improvement in Demand; $50 price increase partially implemented; new price increases announced Demand levelling off; high stock levels A modest recovery forecasted; some further price increases expected in H2 Housing activity continues; prices slightly improved

41. 22 August 200341 Summary The strongest balance sheet in the industry Disciplined and consistent financial targets Targeted capital expenditures to achieve high asset quality Debt-to-equity discipline Strong cash earnings per share Profitability at the bottom of the cycle

42. Visit www.storaenso.com for more information.www.storaenso.com