Stora Enso Timber Sylvester

1. Stora Enso Timber & Sylvester Presentation 15.08.2002

2. 15 August 2002 2 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 Group’s 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 Group’s 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 Group’s 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 Group’s principal geographic markets or fluctuations in exchange and interest rates.

3. 15 August 2002 3 Stora Enso Timber Proposed acquisition of Sylvester

4. 15 August 2002 4 Sylvester In brief The leading wood products and wood procurement company in the Baltic states Combined annual turnover of Sylvester and Forestex companies of € 160 million Circa 1 340 employees in Estonia and Latvia 4 softwood sawmills and 2 further processing plants 3 hardwood sawmills and 1 plywood mill Capacity of 0.9 million m3 of sawn wood products of which 90% softwood Value added production of some 50 000 m3 Main markets in Europe and North Africa Privately owned

5. 15 August 2002 5 Sylvester structure

6. 15 August 2002 6 SylvesterKey figures

7. 15 August 2002 7 Good platform for further development

8. 15 August 2002 8 Sylvester’s wood procurement assets

9. 15 August 2002 9 Baltic Sea Basin strategically important for Stora Enso

10. 15 August 2002 10 Significant cost advantages through a competitive manufacturing base

11. 15 August 2002 11 Sylvester Acquisition timetable August 2002 Approval by the Stora Enso Board of Directors - 14.08. Filing with competition authorities September - October 2002 Due Diligence November 2002 Approvals from competition authorities expected Integration project launched By the end of 2002 Closing

12. 15 August 2002 12 Stora Enso Timber including Sylvester and Russian mills The largest solid wood products company in Europe, among the top three globally The leading sawmill company in the Baltic Countries Competitive and comprehensive product portfolio for construction and joinery industries and wood products trade Global market presence

13. 15 August 2002 13 Stora Enso Timber’s Russian sawmill investments

14. 15 August 2002 14 Stora Enso Timber strengthening its position in the Global Top 3 solid wood producers

15. Stora Enso Timber & Sylvester Appendix

16. 15 August 2002 16 Stora Enso In brief Stora Enso is the 2nd largest forest industry company in the world Sales EUR 13.5 billion 43 000 employees in 40 countries Production capacities: 15 million tons paper and board, 5.8 million m3 wood products Shares listed on Helsinki, Stockholm and New York stock exchanges

17. 15 August 2002 17 Stora EnsoKey figures € million 1999 2000 2001 Sales 10 636 13 017 13 509 Operating profit 1 297 1 926 1 495 % of sales 12.2 14.8 11.1 Profit before tax and minority interests 1 040 1 653 1 231 Net Profit for the period 679 1 074 845 Earnings per share, € 0.89 1.32 0.94 Cash earnings per share, € 2.09 2.61 2.34

18. 15 August 2002 18 Stora EnsoCornerstones of strategy Targets Sustainable profitable growth ROCE > 13% over the cycle Debt/equity < 0.8, willing to briefly go to 1.1 under certain circumstances CAPEX < depreciation Means Continuing focus on core businesses and assets Drive to improve asset quality ( lower unit costs) Sound raw material (fibre) strategy Earnings accretive acquisitions

19. 15 August 2002 19 Stora Enso TimberIn brief One of the three leading wood products companies in the world Annual net sales of € 1 180 million 3 600 employees in 9 European countries 19 sawmills and 15 further processing plants in Northern and Central Europe Capacity 5.8 million m3 of sawn wood products of which 2.2 million m3 are value-added Products for construction and joinery industries and wood products trade Main markets in Europe, USA, Asia and North Africa

20. 15 August 2002 20 Stora Enso TimberStrategy VisionThe Best Solid Wood Products Company in the World Mission Competitive solutions to selected end use segments world-wide