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At the end of July 2011, Stora Enso concluded acquisition of the majority of packaging company Inpac International. Have a look on Inpac's cooperation with Nestlé in China! Being the world's foremost Nutrition, Health and Wellness company, Nestlé has a long-established presence in China since it opened its first sales office in Shanghai in 1908. Nestlé was one of the first leading international companies to enter the Chinese market. In 1990 the company already started its local production by establishing its first factory in Shuangcheng, Heilongjiang Province, China. Today, Nestlé operates 22 factories in the Greater China Region and 98% of Nestlé products sold in the Mainland are locally manufactured.

STORA ENSO PACKAGING OFFSET PRODUCTS NEWSLETTER FOR CUSTOMERS 1/11

Prospects for the new global packaging offering of Stora Enso ­ Inpac and Nestlé

Business between Inpac and Nestlé

Inpac initiated the business from the gift box projects for two premium products of Nescafé in 2009: Golden GB and Yunnan GB. Inpac has co-developed the structural designs with Nestlé and successfully passed the strict transportation tests. During the process, Inpac's performance has greatly impressed the customer. After these two gift boxes, Inpac has immediately started two brand new products specially designed for different distribution channels: one for office consumers in big cities, and one for lower-end consumers in smallmiddle cities. Again, the creative designs ensured Inpac to win the new orders in 2010. Besides the GB products, Inpac has provided Nescafé micro-flute boxes for promotional purposes, as well as the co-packing services - that is assembling coffee products in sachet or stick into the packaging boxes and shipping cartons. All of the efforts have brought Inpac an outstanding result in Nestlé's packaging business in 2010,

About Nestlé China

Prospects for the new global packaging offering of Stora Enso ­ Inpac and Nestlé

the sales revenue of the year was over RMB 6.70 million. With the great confidence, Inpac has targeted the sales revenue at RMB 15 million in 2011.

Effective communication and teamwork makes Inpac keep going

Nowadays the fierce competition makes the packaging suppliers focus more on strategic thinking and planning. In addition to the traditional fighting in price and productivity, differentiated services and satisfied order fulfillment are more critical for the business development than ever. On top of all these necessities, effective communication and seamless teamwork are playing an irreplaceable role. For Nestlé's case, the following key points summarize what Inpac has done to win customer's trust and business: · Frequent customer visits, fully understood customer needs, and quick response to customer's inquiries · Clearly understood different roles and hierarchy relationship of all the key business contacts in Nestle (both HQ and factory), proactively communicated with those persons and ensured information consistency for every issue. · Sales and design team presented together in every new product introduction/follow-up meetings, showing high attention on each individual project. Closely communicated with internal operation teams · and ensured every process and requirement were correctly implemented. · Effective product development process and project management in place. Text: Yanling Tang, Stora Enso Inpac

Stora Enso concludes acquisition of the majority of packaging company Inpac International in China and India

On 28 July 2011, Stora Enso has completed the acquisition of 51% of the Chinese packaging company Inpac International as announced on 27 October 2010. The enterprise value of the company is EUR 80 million. Stora Enso will also purchase the production plant site and buildings at Qian'an in northern China for approximately EUR 13 million. Following the acquisition, the new Inpac business unit will be reported as part of Stora Enso's Industrial Packaging segment results from the third quarter of 2011 onwards . Veli-Jussi Potka, Stora Enso Packaging products Executive Vice President, reminds that Inpac is Stora Enso's first packaging industry investment in China and India. - Inpac gives us access to growing markets, which have an enormous number of consumers. It also gives us the opportunity to serve our existing customers on the Chinese and Indian markets. Our goal is to increase our business and expand our customer interface in China and India, especially in the consumer packaging segment.

Yunnan GB

Golden GB

Nescafé1+2 4B sachet

My Personal Café

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The latest large investment at the Ostrolka Mill: new power plant worth EUR 137 million, inaugurated in May 2011

Stora Enso invests EUR 285 million in new containerboard machine at Ostroleka in Poland

Stora Enso is strengthening its leading position in corrugated packaging in the growth markets of Central and Eastern Europe by renewing containerboard capacity at its Ostrolka Mill in Poland. The EUR 285 million investment project is scheduled to be completed in the first quarter of 2013. The new containerboard machine will not only renew the product offering, but it will also improve Stora Enso's overall cost position through efficient internal supply of light-weight containerboard made from recycled fibre. In conjunction with the start-up, Stora Enso plans to shut down containerboard machine PM 2 at Ostrolka Mill. "Customer demand for modern light-weight corrugated packaging is increasing rapidly. This investment supports Stora Enso's objective of offering demanding customers new packaging solutions," says Mats Nordlander, Executive Vice President, Packaging Business Area. The annual capacity of Ostrolka Mill, which is part of Stora Enso's Industrial Packaging segment, is currently 270 000 tonnes of containerboard and kraft paper. The annual capacity of the new containerboard machine will be 455 000 tonnes and the annual capacity of PM 2 is currently 85 000 tonnes of containerboard.

Did you notice the new logo?

In April 2011, Stora Enso has launched its change process, Rethink. Rethink is based on changes that have gradually taken place within our businesses. We are thinking about our business in new ways, and the spirit of seeing things afresh has become something of a daily routine in the company. The Rethink change process is visually reflected in our new corporate identity including a new logo. The new identity symbolizes Stora Enso's commitment to creating a sustainable future for the planet by developing innovative solutions based on renewable materials.

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Production plant Warehouse site SEPack Offset mills

A new board machine worth EUR 285 million at the Ostroleka Mill to start operating in Q1 2013.

Stora Enso Packaging Kft. M1 Business Park Building "A" HU-2071 PÁTY Hungary Tel. +36 23 555 600 Fax +36 23 555 601 www.storaenso.com/paty E-mail: [email protected] Stora Enso Poland S.A. ul. Galczynskiego 20 62-050 MOSINA Poland Tel. +48 (61) 899 67 00 Fax +48 (61) 899 67 02 www.storaenso.com/mosina E-mail: [email protected] Stora Enso Inpac C-6 Sipcot Industrial Park, Irungattukottai Spiperumbudur Taluk - 602 105 Kancheepuram District India Tel. + 91 44 27143700 Fax. +91 44 27143799

Stora Enso Packaging Kft. Bánki Donát street 7 HU-2900 KOMÁROM Hungary Tel. +36 34 526 908 Fax +36 34 526 909 www.storaenso.com/komarom E-mail: [email protected]

Stora Enso Packaging Ul.Lermontova 2 249000 BALABANOVO Russia Tel. +7 48438 60740 Fax +7 48438 69006 www.storaenso.com/balabanovo-offset E-mail: [email protected]

Stora Enso Packaging Oy Sahantie 15 FI-34450 JÄMINKIPOHJA Finland Tel. +358-2046 118 Fax +358-2046 483 00 www.storaenso.com/ruovesi E-mail: [email protected] Stora Enso Inpac No. 1299 Feng'an Rord, 064400 Qian'an, Hebei, China Tel. + 86 315 7681581 Fax. + 86 315 7681538 www.inpac.com.cn E-mail: [email protected]

Further information

www.storaenso.com/offset Stora Enso Packaging Oy, Offset Products, Hennalankatu 270, P.O. Box 4, FI-15701 Lahti, Finland Tel. +358 2046 118 Fax +358 3 752 0237 Email addresses of Stora Enso staff members are formed like this: [email protected]

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