Stora Enso Oyj — M&A Activity 2012

Sep 18, 2012

Stora Enso expands renewable packaging business to Pakistan

Stora Enso expands renewable packaging business to Pakistan

Helsinki, Finland, 2012-09-18 06:15 CEST (GLOBE NEWSWIRE) -- STORA ENSO OYJ
STOCK EXCHANGE RELEASE 18 September 2012 at 07.15 EET

Stora Enso has signed an agreement to establish a joint venture called Bulleh
Shah Packaging (Private) Limited with Packages Ltd. of Pakistan. Stora Enso's
initial shareholding will be 35% with a commitment to increase the shareholding
at the agreed value to 50% at a later stage subject to certain conditions being
met. The joint venture will include the operations of the Kasur mill and
Karachi plant currently owned by Packages Ltd.

The joint venture will to a large extent provide packaging products to key
local and international customers in the fast-growing Pakistani market. The
joint venture will employ about 950 people and its sales are forecast to be USD
130 million (EUR 99 million) in 2012.

The agreed value for 100% of the joint-venture company is approximately USD 108
million (EUR 83 million) on a cash and debt free basis. The total consideration
can be up to USD 125 million (EUR 96 million), including an additional maximum
performance compensation based on the financial results of the second half of
2012 and the first half of 2013. As part of the agreement, both parties are
committed to a substantial USD 135 million (EUR 103 million) investment
programme during 2013 and 2014 to develop the business further. The joint
venture is EPS accretive and will over time after the new investments exceed
Stora Enso's ROCE target of 13%.

“This is an example of Stora Enso's investments in value-creating growth
markets. The Pakistani market, with growing demand for packaging products and
paperboard, offers an attractive growth opportunity for us and the joint
venture will enable us to increase our capability to serve our key
customers,”says Mats Nordlander, Executive Vice President, Renewable Packaging
Business Area.

The joint-venture transaction is expected to be completed during the first
quarter of 2013, subject to competition and regulatory approval and other
customary transaction conditions.

For further information, please contact:
Mats Nordlander, EVP, Renewable Packaging, tel. +46 1046 72703
Tommy Borglund, VP, Communication, Renewable Packaging, tel. +46 1046 71709
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 40 763 8767

Photos of Kasur Mill are available at
http://bmt.storaenso.com/?cart=186-ieflgcblce&l=EN. Please copy the link into
your web browser.

www.storaenso.com
www.storaenso.com/investors

Packages Ltd.

Packages Ltd. is the largest packaging and board producer and converter in
Pakistan. It has 3 000 employees. The main assets are located in Lahore and
Kasur in the province of Punjab. The market capitalisation of Packages Ltd. is
USD 86 million and the shares are listed on the Karachi, Islamabad and Lahore
stock exchanges. Packages Ltd. has a long tradition of working with key local
and international companies. Stora Enso already has a 6.4% shareholding in
Packages Ltd.

Stora Enso

Stora Enso is the global rethinker of the paper, biomaterials, wood product and
packaging industry. We always rethink the old and expand to the new to offer
our customers innovative solutions based on renewable materials. Stora Enso
employs some 30 000 people worldwide, and our sales in 2011 amounted to EUR
11.0 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV,
STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the
USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

STORA ENSO OYJ