Filed by Stora Enso Oyji
Pursuant to Rule 425 under the Securities Act of 1933
deemed filed pursuant to Rule 14a-12 of the Securities
Exchange Act of 1934
Subject Company: Consolidated Papers, Inc.
Commission File No. 0-1051
THE FOLLOWING IS A PRESS RELEASE DISSEMINATED BY STORA ENSO OYJ ON
FEBRUARY 22, 2000 AND FILED BY CONSOLIDATED PAPERS, INC. ON FEBRUARY 22, 2000
ON A FORM 8-K WITH THE SEC:
Press Release 22 February 2000 StoraEnso [Logo]
Kanavaranta 1
00160 Helsinki, Finland
P.O. Box 309
FIN-00101 Helsinki, Finland
Tel +358 2046 131
Fax +358 2046 21471
www.storaenso.com
Stora Enso to acquire Consolidated Papers for EUR 4.9 billion
Stora Enso's strategic rationale for the acquisition includes: the opportunity
to expand into the World's largest paper market by acquiring the premier coated
and supercalendered paper producer with leading market positions in Stora Enso's
core paper grades, creating a powerful North American platform for future
growth.
Helsinki, Finland and Wisconsin Rapids, Wisconsin (February 22, 2000) - Stora
Enso Oyj (Helsinki Stock Exchange: STERV and Stockholm Stock Exchange: STER)
today announced that it has reached an agreement to acquire Consolidated Papers,
Inc. (NYSE: CDP) in a transaction valued at EUR 4.9 billion (USD 4.8 billion),
including assumed net debt of EUR 0.9 billion (USD 0.9 billion). The combined
enterprise will be the largest producer of paper and board by capacity
world-wide, with total 1999 sales of approximately EUR 12.4 billion (USD 13.2
billion) and total paper capacity of approximately 15 million metric tonnes.
Under the terms of the agreement, all of the issued and outstanding shares of
Consolidated Papers will be converted, at the election of the holder, into cash
or Stora Enso ADRs (American Depositary Receipts representing an interest in
underlying Series R shares of Stora Enso to facilitate trading in the United
States), or a combination of cash and ADRs, with a value of USD 44.00 per
Consolidated Papers share. Each ADR will represent one Series R share of Stora
Enso. Consolidated Papers shareholders' elections of cash or ADRs will be pro
rated, to the extent necessary, so as to maintain a 50% cash and 50% ADR
aggregate consideration mix. The exchange ratio for Consolidated Papers shares
converted into ADRs will be between 2.678 and 3.621 ADRs per Consolidated Papers
share, based on the average trading value of Stora Enso Series R shares over a
period just prior to the closing, as necessary to provide USD 44.00 in value per
share. However, the exchange ratio will be fixed at 2.678 ADRs for each
Consolidated Papers share if Stora Enso Series R shares are then trading at a
EUR trading price higher than a USD 16.43 equivalent and will be fixed at 3.621
ADRs if the Series R shares are then trading below a USD 12.15 equivalent.
The transaction has been unanimously approved by the boards of directors of both
companies. The transaction is subject to regulatory approval and the approval of
the shareholders of both companies. Assuming 140 million Stora Enso Series R
shares are issued, Consolidated Papers shareholders would receive approximately
a 15.5% economic interest and 5.0% of the vote in Stora Enso.
The transaction values Consolidated Papers' total equity at EUR 4.1 billion (USD
4.0 billion) or USD 44.00 per share. This represents a premium to Consolidated
Papers' shareholders of 69% based on a February 18 closing price of USD 26.00,
and is 34% above the 52-week high price of USD 32.88. Stora Enso will account
for the transaction as a purchase and the transaction goodwill is estimated to
aggregate approximately EUR 2.8 billion (USD 2.7 billion). Management estimates
that the transaction will be accretive in the first full year to cash earnings
per share and dilutive after amortization of goodwill. The transaction is
expected to qualify for tax-free treatment to the extent Stora Enso ADRs are
received in exchange for shares of Consolidated Papers.
Stora Enso management expects that the ADRs will be registered and listed, and
the transaction closed, by August 2000. The ADR program is designed to establish
a liquid market with an estimated initial float of approximately USD 2 billion.
In the event that the ADRs have not been registered and listed by October 31,
2000, Stora Enso will complete the transaction on a 100% cash basis at USD 44.00
per Consolidated Papers share.
Within Europe, Stora Enso is one of the two largest producers of lightweight
coated and SC paper used in magazines, and coated fine papers used in higher
quality publications, such as annual reports and marketing brochures.
Consolidated Papers has similar strengths in North America in these three
grades. Consolidated Papers' marketing network will provide additional
distribution for approximately 900,000 metric tonnes of paper currently exported
by Stora Enso to the United States.
The companies anticipate annual pre-tax operating synergies of approximately USD
110 million. These synergies will be achieved through sales and logistics
optimization, best manufacturing practices, and purchasing efficiencies.
Approximately USD 90 million of the savings are expected to be realized by the
end of 2001 with the full amount achieved in 2002.
Jukka Harmala, Chief Executive Officer of Stora Enso, stated, "This acquisition
marks the first major step toward the successful execution of our North American
strategy. With approximately 13 million tonnes of manufacturing capacity in
Europe, and the integration of Stora and Enso behind us, the further development
of our manufacturing base in North America is our highest priority. We believe
that Consolidated Papers represents an ideal strategic fit for our business. We
are particularly attracted by Consolidated Papers' narrow product focus, the
100-year reputation of the business and its outstanding customer relationships.
The addition of its leading North American market share, excellent management
team and dedicated employees provides our combined forces with a strong
competitive position in the global marketplace."
George W. Mead, Chairman of Consolidated Papers, will be invited to join the
Stora Enso Board of Directors. Commenting on the acquisition, Mr. Mead stated,
"Consolidation in the paper industry is accelerating. Our company has been
extremely successful in building an admired franchise in North America.
Throughout the long history of our company, the management team and employees
have consistently rewarded shareholders with some of the best financial results
in the industry. We believe that the future success of the business and the
ability to serve our loyal customer base will be enhanced by being a central
part of the North American strategy of a global company such as Stora Enso."
About Stora Enso
Stora Enso is one of the world's leading forest industry companies. Stora Enso
was formed through the merger of Finnish Enso and Swedish STORA at the end of
1998. To date this combination has been extremely successful, with synergies
more than double targeted levels. Stora Enso is an integrated forest products
group that manufactures magazine paper, newsprint, fine paper and packaging
boards, supported by 2.1 million hectares of productive forestland. Stora Enso
holds strong global positions in all of the aforementioned product areas. Stora
Enso employs approximately 40,000 people and maintains operations in Europe,
Asia and North America. Additionally, Stora Enso has sales and marketing
organizations throughout the world.
About Consolidated Papers
Consolidated Papers is headquartered in Wisconsin Rapids, Wisconsin, and is
North America's largest producer of coated paper and SC printing papers, as well
as the leading manufacturer of specialty papers. Consolidated Papers has an
excellent reputation as an industry leader, driven by its strong marketing
network and customer relationships. Consolidated Papers employs about 6,800
people and operates manufacturing facilities in Biron, Kimberly, Niagara,
Stevens Point, Whiting and Wisconsin Rapids, Wisconsin, as well as in Duluth,
Minnesota. Consolidated Papers owns and manages nearly 700,000 acres of
forestland in Wisconsin, Michigan, Minnesota and Ontario, Canada.
Advisors
Stora Enso was advised on the transaction by Salomon Smith Barney Inc.
Consolidated Papers was advised by Goldman, Sachs & Co.
* * *
This press release contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of the safe-harbor provisions of
the U.S. federal securities laws. Because these forward-looking statements are
subject to risks and uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many of these risks and
uncertainties relate to factors that are beyond the companies' ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behavior of other market participants, the actions of
governmental regulators and other risk factors detailed in Consolidated Paper's
reports filed with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The companies do not undertake any
obligation to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of this press release.
Investors and security holders are advised to read the proxy statement/
prospectus regarding the business combination transaction referenced in this
press release, when it becomes available, because it will contain important
information. The proxy statement /prospectus will be filed with the Securities
and Exchange Commission by Stora Enso Oyj and Consolidated Papers, Inc. Security
holders may obtain a free copy of the proxy statement/prospectus (when
available) and other related documents filed by Stora Enso Oyj and Consolidated
Papers, Inc. at the Commission's website at www.sec.gov. When available, the
proxy statement/prospectus and the other documents may also be obtained from
Stora Enso by contacting Stora Enso Oyj, Attention: Maija Harsu, Investor
Relations, Kanavaranta 1, P.O. Box 309, FIN-00101 Helsinki, Finland, and/or
Consolidated Papers, Inc. by contacting Consolidated Papers, Inc., Attention:
Tim Laatsch, Corporate Communications, 231 First Avenue North, P.O. Box 8050,
Wisconsin Rapids, Wisconsin 54495-8050.
Consolidated Papers, Inc., its directors, executive officers and certain other
members of Consolidated Papers management and employees may be soliciting
proxies from Consolidated Papers shareholders in favor of the merger.
Information concerning the participants will be set forth in the proxy
statement/prospectus when it is filed with the Securities and Exchange
Commission.
For Additional Information:
Jukka Harmala, CEO of Stora Enso, tel. +358 2046 21404
Esko Makelainen, SEVP, Accounting and Legal Affairs, tel. +358 2046 21450
Ingvar Petersson, SEVP, Chief Financial Officer, tel. +46 8 613 6600
Scott Deitz, Director of Public Affairs, tel. +715 422 1521
www.storaenso.com
www.storaenso.com/investors
www.consolidatedpapers.com
You are cordially invited to press conferences to be organised as follows;
At 11.00 a.m. (Swedish time) in Stockholm, Vastra Tradgardsgatan 15.
At 12.00 a.m. (Finnish time) in Helsinki, Wanha Satama, Pikku Satamakatu 3
At 4.00 p.m. (Finnish time) telephone conference. The European dial in number is
+ 44 181 781 0597, UK dial in number is 0181 781 0597 and US dial in number is 1
888 689 9341.
Instant replay: Europe: +44 181 288 4459, access code 653662
UK 0181 288 4459, access code 653 662 and USA 1 703 736 7336, access code 653662
************
THE FOLLOWING IS SLIDE PRESENTATION GIVEN BY STORA ENSO OYJ BEGINNING ON
FEBRUARY 22, 2000
<PAGE>
[Slide 1]
STORAENSO [LOGO]
Stora Enso
Acquires
Consolidated Papers in
USA
[Slide 2]
STORAENSO [LOGO]
Stora Enso enters North America in a
major way by acquiring US-based premier
coated paper company - Consolidated
Papers, Inc.
[Slide 3]
STORAENSO [LOGO]
Consolidated Papers in 1999
Sales, USD million 1.839
EBITDA, USD million 353
Operating profit, USD million 164
Shareholders equity, USD million 1.354
Interest-bearing net-liabilities, USD million 860
Capacity: Total 2 million t/a (metric) of graphical papers
Coated woodfree 700.000
Coated mechanical 950.000
SC-paper 200.000
Speciality papers 150.000
Owns also kraft pulp, forest and power
Number of employees: 6.800
[Slide 4]
STORAENSO [LOGO]
Consolidated Papers - Mill Locations
Mills concentrated around mid-western publishing centers
[MAP ILLUSTRATING LOCATIONS OF CONSOLIDATED PAPERS' MILLS]
[Slide 5]
STORAENSO [LOGO]
Why North-America?
o To serve global customers
- be global, act local
o To strengthen market position
- full access to world's largest single paper market
o To increase market share and capacity
- market share means stability
- access to economies of scale
o Improved USD/EURO balance
- risk hedging
o Platform for future growth in North-America
[Slide 6]
STORAENSO [LOGO]
Strengths of Consolidated Papers
o Leading market positions in coated papers in the USA
o Excellent market reputation in North-America
o Strong management team with extensive industry experience
o Excellent sales and marketing network in USA and Canada
o Long-standing and high-quality customer base
o Good asset base
[Slide 7]
STORAENSO [LOGO]
Contribution to Stora Enso
Growth
o will give Stora Enso a strong presence in North America with a
strengthened market position in coated woodfree, coated mechanical
and SC-papers
Global presence
o will significantly improve service to global customers
o will create superior service position in North-America
[Slide 8]
STORAENSO [LOGO]
Estimated Financial Synergies
2001 - 2002
USD million 2001 2002
- ---------------------------------------------------------------------------
o Best practices 50 60
- production efficiency
- cost savings
- ---------------------------------------------------------------------------
o Optimization of sales and logistics 30 40
- access to best distribution channels in USA
- European imports and Port Hawkesbury
- ---------------------------------------------------------------------------
o Purchasing 10 10
- ---------------------------------------------------------------------------
90 110
--> Additional benefits are expected to arise from global
marketing synergies and performance improvement programs
to be established
[Slide 9]
STORAENSO [LOGO]
Terms of the Transaction
Price: USD 44 per share (91 million shares)
Equity value: EUR 4.1 billion/USD 4.0 billion
Enterprise value: EUR 4.9 billion/USD 4.8 billion
Form of consideration: 50% cash/50% Stora Enso ADRs
Exchange ratio: Varies depending on Stora Enso's Series R
share price prior to closing, subject to a
collar of USD 12.15 - USD 16.43 per share,
outside of which the exchange ratio is
fixed
ADR execution: If ADRs are not registered and listed by
October 31, 2000, Stora Enso will complete
the transaction with 100% cash at USD 44
per share
[Slide 10]
STORAENSO [LOGO]
Terms of the Transaction
o Each ADR will represent one Stora Enso Series R share to be issued
at closing
o Assuming 140 million of Stora Enso Series R shares are issued,
Consolidated Papers shareholders would receive a 15.5% economic
interest and 5.0% of the vote in Stora Enso
o Significant cash component while maintaining tax deferral on share
portion to US investors
o Closing targeted for August 2000
[Slide 11]
STORAENSO [LOGO]
Stora Enso Figures After
the Acquisition
Balance Sheet
<TABLE>
<CAPTION>
Stora Enso Consolidated Combined Combined
Pro forma after sale
EUR billion Dec-99 Dec-99 Dec-99 of power
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fixed assets 11.8 2.7 17.2* 15.8
Working capital 1.6 -- 1.6 1.6
Operating capital 13.4 2.7 18.8 17.4
Net tax liabilities -1.7 -0.4 -2.1 -2.0
- ------------------------------------------------------------------------------------------
Capital employed 11.7 2.3 16.7 15.4
Shareholders equity 6.0 1.4 8.0 8.4
Minority interests 0.2 -- 0.2 0.2
Interest-bearing net liabilities 5.5 0.9 8.5 6.8
Financing 11.7 2.3 16.7 15.4
- ------------------------------------------------------------------------------------------
Debt/equity ratio 0.9 0.7 1.0 0.8
</TABLE>
*) Includes EUR 2.8 billion of goodwill, associated with this acquisition
[Slide 12]
STORAENSO [LOGO]
EPS Combination Analysis
Salomon Smith Barney Research Estimates for EPS in 2001*
EUR EPS Cash EPS
- ------------------------------------------------------------------
Stora Enso 1.85 1.95
Consolidated Papers 3.52 3.63
- ------------------------------------------------------------------
Pro forma Stora Enso 1.80 1.98
with synergy benefits of USD 90 million**
- ------------------------------------------------------------------
Accretion/(dilution) (0.05) 0.03
% (2.6%) 1.0%
*) Assumes USD 1.00: EUR 1.02
**) Pro forma reported EPS includes approximately USD 65 million
in incremental amortization of goodwill (40 years)
[Slide 13]
STORAENSO [LOGO]
Stora Enso Financial Targets
Maintained
o Profitability
- target ROCE 13% over the cycle
o Financial structure
- debt/equity ~ 0.80 in 2000
o EPS and CEPS
- impact of Consolidated Paper will be slightly dilutive in
the first full year to EPS
- the impact will be accretive to cash earnings from 2001
onwards
[Slide 14]
STORAENSO [LOGO]
Organisation and
Management Issues
o Consolidated Papers' and Stora Enso's North American operations
will be combined
- Consolidated Papers operations and sales offices
- Stora Enso's Port Hawkesbury mill in Canada and U.S.
sales offices
o Consolidated Papers experience and competence retained through
integration
o Will retain the "Consolidated Papers" brands
o George W. Mead will be invited to join Stora Enso's board
o Group international office to be established in London
[Slide 15]
STORAENSO [LOGO]
An Opportunity to Create Value
o Stora Enso continues to grow through acquisitions
o Excellent product match
- provides focused expansion in core products
o Annual synergies of USD 110 million by 2002
o Limited integration risk
- Stora Enso's successful track record with acquisitions
- Consolidated Papers is well-managed, focused and
consistently profitable
o Further streamlining and asset sales
o Transfer of best practices and internal benchmarking
[Slide 16]
STORAENSO [LOGO]
Cautionary statement
This presentation contains certain statements that are forward-looking
statements within the meaning of the safe-harbour provisions of the U.S.
federal securities laws. Because these forward-looking statements are subject
to risks and uncertainties, actual future results may differ materially from
those expressed in or implied by the statements. Many of these risks and
uncertainties relate to factors that are beyond the companies' ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behaviour of other market participants, the actions of
governmental regulators and other risk factors detailed in Consolidated
Papers' reports filed with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The companies do not undertake any
obligation to publicly release any revisions to these forward-looking
statements to reflect events or circumstances after the date hereof.
Investors and security holders are advised to read the proxy
statement/prospectus regarding the business combination transaction
referenced herein, when it becomes available, because it will contain
important information. The proxy statement/prospectus will be filed with
the Securities and Exchange Commission by Stora Enso Oyj and Consolidated
Papers, Inc. and security holders may obtain a free copy of the proxy
statement/prospectus (when available) and other related documents filed by
Stora Enso and Consolidated Papers at the Commission's website at
www.sec.gov. The proxy statement/prospectus and other documents may also be
obtained from Stora Enso Oyj by contacting Stora Enso Oyj. Attention: Maija
Harsu, Investor Relations, Kanavaranta 1, FIN-00101 Helsinki, Finland
and/or Consolidated Papers, Inc. by contacting Consolidated Papers, Inc.,
Attention: Tim Laatsch, Corporate Communications, 231 First Avenue North,
P.O.Box 8050, Wisconsin Rapids, Wisconsin 54495-8050.
Consolidated Papers, Inc., its directors, executive officers and certain
other members of Consolidated Papers management and employees may be
soliciting proxies from Consolidated Papers shareholders in favour of the
merger. Information concerning the participants will be set forth in the
proxy statement/prospectus when it is filed with the Securities and
Exchange Commission.
[Slide 17]
STORAENSO [LOGO]
Additional
[Slide 18]
STORAENSO [LOGO]
Consolidated Papers
Financials 1995 - 1999
USD million 1995 1996 1997 1998 1999
- ---------------------------------------------------------------------------
Net sales 1579 1545 1679 1989 1839
EBIT 391 293 213 243 164
margin (%) 25 19 13 12 9
Net income 229 179 118 102 66
EPS 2.58 2.01 1.32 1.13 0.73
Capital expenditure 159 288 236 349 159
Debt*/Cap. (%) 15 18 40 44 40
- ---------------------------------------------------------------------------
1999 results affected by:
o Inter Lake mill acquired from Repap in 1997
o Low operating rates in 1999 due to slow market in early 1999
*) Excludes capitalized leases
[Slide 19]
STORAENSO [LOGO]
Two World Class Companies
Consolidated
EUR billion Stora Enso Papers Combined
- ---------------------------------------------------------------------------
Market Capitalization 10.2 2.4 12.6
1999 Sales 10.6 1.7 12.4
1999 EBITDA 2.3 0.3 2.6
Debt/equity ratio 0.9 0.6 1.0*
Paper and board capacity 13.3 2.0 15.3
`000 tonnes
No. of Employees 40.200 6.800 47.000
- ----------------------------------------------------------------------------
*) To be reduced to approximately 0.8 following the divestiture of the
power assets
[Slide 20]
STORAENSO [LOGO]
Description of Mills
Total
Grades Capacity Number
Mill name Produced (1000 t/a) of PMs
- -------------------------------------------------------------------------------
1. Wisconsin Rapids Coated woodfree 425 4
Recycled board 32
o Converting facility Coated woodfree sheets 330
o Kraft pulp mill Chemical hardwood & 340
softwood pulp
o Paperboard products Cores, cartons 40
2. Biron Coated groundwood (LWC) 370 4
3. Wisconsin River Coated groundwood (LWC) 180 2
4. Inter Lake Coated woodfree, 435 3
Coated groundwood (LWC)
5. Niagara Coated groundwood (LWC) 210 2
6. Lake Superior SC-paper 200 1
7. Superior Recycled Fiber Recycled pulp 90
8. Stevens Point Specialities papers 140 4
[Slide 21]
Demand Forecast 2000 StoraEnso [Logo]
[Pie Charts Reflecting the Following Information:
Coated woodfree North America 5.7 Total 23.92 million t/a
Europe 9.0
Others 9.2
Coated Mechanical North America 5.4 Total 15.01 million t/a
Europe 6.9
Others 2.7
Uncoated Mechanical North America 5.3 Total 14.06 million t/a
Europe 6.0
Others 2.7]
Source: EMGE
[Slide 22]
Stora Enso's and Consolidated StoraEnso [Logo]
Papers' Combined Share of
Total Capacity
[Pie Chart Reflecting the Following Information:
Coated Woodfree
13% (5.40 million t/a Total North American Capacity)
Coated Mechanical
18% (5.20 million t/a Total North American Capacity)
Uncoated Mechanical Incl. SC
11% (5.00 million t/a Total North American Capacity)]
[Slide 23]
Stora Enso's and Consolidated StoraEnso [Logo]
Papers' Combined Share of
Total Capacity
[Pie Chart Reflecting the Following Information:
Coated Woodfree
18% (9.05 million t/a Total Europe Capacity)
Coated Mechanical
21% (8.40 million t/a Total Europe Capacity)
Uncoated Mechanical Incl. SC
14% (6.80 million t/a Total Europe Capacity)]
[Slide 24]
STORAENSO [LOGO]
Consolidated Papers
Energy Sourcing
o Several company owned small hydro power plants
o Shareholding in a utility power company
o Own kraft pulp mill power generation in Wisconsin Rapids
o Purchases major part of the electricity from grid
[Slide 25]
STORAENSO [LOGO]
Consolidated Papers
Environmental Status
o Maintains good North American environmental standards
o Well prepared to meet future Cluster rules
Wood fibre sourcing
o Wood fibre from well-managed forest meeting AFPA standards
o Owned forest and third party suppliers
o Owns over 700 000 acres of forestland in Wisconsin, USA and
Ontario, Canada
[Slide 26]
Industry Market Structure in StoraEnso [Logo]
North America
[Chart Reflecting Following Information:
growth/annum TOP5 Total
capacity share capacity
Newsprint - 0.1 % 64 % 16300
Uncoated groundwood
(incl. SC) 2.7 % 57 % 4900
Coated groundwood 3.0 % 67 % 5200
Uncoated woodfree 1.9 % 62 % 14200
Coated woodfree 3.6 % 62 % 5500
Containerboard 2.3 % 52 % 33400]
Circle area describes total capacity
Source: Jaakko Poyry
[Slide 27]
Estimated Global Demand Growth
For Paper and paperboard by Grade StoraEnso [Logo]
1996*-2010
[Bar Graph Illustrating percentage market growth per annum on the vertical axis
and percentage share of consumption in 1996 on the horizontal axis for each of
the following: Newsprint, Uncoated Mechanical, Coated Mechanical, Uncoated
Woodfree, Coated Woodfree, Tissue, Corrugating Materials, Sack Paper,
Cartonboards, Other Grades.]
Source: Jaakko Poyry
[Slide 28]
Stora Enso & Consolidated Papers StoraEnso [Logo]
Combined Capacity Figures
`000t (metric)
[Pie Chart Reflecting Following Information:
Coated Woodfree 2,500
Uncoated Woodfree 1,400
Coated Mechanical 2,740
Uncoated Mechanical 1,515
Newsprint 3,295
Packaging Boards 3,420
Specialities 401]
Total Capacity 15.3 million tons
Source: Jaakko Poyry
[Slide 29]
Largest Forest Products Companies StoraEnso [Logo]
Worldwide by Firm Value
[Bar Graph Reflecting Following Information:
Equity Value Net Debt Firm Value
International Paper 16796 10032 26828
Stora Enso 12318 6423 18741
Champion International 12846 4413 17259
Weyerhaeuser 11450 4929 16379
Oji Paper 5400 7881 13281
Asia Pulp and Paper 1781 10415 12196
Georgia-Pacific 5995 5997 11992
Nippon Paper 5898 4603 10500
Smurfit-Stone Container 3523 5965 9488
SCA 5537 2844 8381
Willamette 3960 1706 5667]
MUSD
Source: Salomon Smith Barney
[Slide 30]
Largest Forest Products Companies StoraEnso [Logo]
Worldwide by Revenue
[Bar Graph Reflecting Following Information:
Revenue
International Paper 24386
Georgia-Pacific 20956
Weyerhaeuser 13877
Champion International 13405
Stora Enso (Pro Forma) 12498
Oji 10868
Nippon Paper 8168
SCA 7485
Smurfit Stone 7019
Willamette 3916
Asia Pulp & Paper 2905]
MUSD
[Slide 31]
Largest Paper and Board Producers in StoraEnso [Logo]
the World (2000/1Q)
[Bar Graph Reflecting Following Information:
Capacity `000t (metric) Percentage
Stora Enso (incl. Consolidated) 15270 4.5%
International Paper 13570 4.0%
Champion International 12011 3.6%
Oji 7275 2.2%
Abitibi (inc. Donohue) 7168 2.1%
Smurfit Stone 7143 2.1%
Georgia Pacific 7083 2.1%
Nippon Paper 6082 1.8%
SCA 6031 1.8%
Asia Pulp & Paper 5624 1.7%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
[Slide 32]
Largest Coated Mechanical Paper StoraEnso [Logo]
Producers in the World
[Bar Graph Reflecting Following Information:
Capacity Percentage
`000 tons (metric)
Champion International 3714 23.1%
Stora Enso (incl. Consolidated) 2740 17.1%
Burgo 900 5.6%
Metsaliitto 735 4.6%
Oji 693 4.3%
Myllykoski 545 3.4%
Mead 515 3.2%
International Paper 500 3.1%
Repap 450 2.8%
Sappi 425 2.6%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
[Slide 33]
Largest Coated Woodfree StoraEnso [Logo]
Producers in the World (2000/1Q)
[Bar Graph Reflecting Following Information:
Capacity Percentage
`000 tons (metric)
Sappi 2818 10.9%
Stora Enso (incl. Cons.) 2500 9.7%
Asia Pulp & Paper 1509 5.8%
Champion International 1300 5.0%
Oji 1250 4.8%
Metsaliitto 1135 4.4%
Lecta Europe 1116 4.3%
Nippon Paper 794 3.1%
International Paper 730 2.8%
Burgo 730 2.8%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
[Slide 34]
Largest Uncoated Mechanical Producers in the World
[Bar Graph Reflecting Following Information:
Capacity Percentage
`000 tons (metric)
Stora Enso (inc. Cons) 1860 13.7%
Champion Int. 1625 12.0%
Abitibi (inc. D) 1375 10.1%
Myllykoski 820 6.0%
Norske 590 4.3%
Haindl 430 3.2%
Daishowa 370 2.7%
Fletcher Challenge 360 2.6%
Alliance 345 2.5%
SCA 330 2.4%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
[Slide 35]
Largest Coated Paper Producers in StoraEnso [Logo]
North America
[Bar Graph Reflecting Following Information:
Capacity Percentage
`000 tons (metric)
Champion International 1320 (app.) 20.7%
Stora Enso (incl. Consolidated) 1145 (app.) 18.0%
Myllykoski 635 (app.) 11.6%
Norske Skog 560 (app.) 8.7%
Abitibi (incl. Donohue) 555 (app.) 8.7%]
Percentage figures refer to share of capacity
Source: Salomon Smith Barney
[Slide 36]
Largest Coated Woodfree Paper StoraEnso [Logo]
Producers in North America
[Bar Graph Reflecting Following Information:
Capacity Percentage
`000 tons (metric)
Sappi 980 17.6%
Stora Enso (incl. Consolidated) 742 13.4%
Westvaco 613 11.0%
Champion International 550 9.9%
Mead 533 9.6%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
[Slide 37]
Largest Coated Mechanical Paper StoraEnso [Logo]
Producers in North America
[Bar Graph Reflecting Following Information:
North American
Production Capacity Percentage
`000 t (metric)
Champion International 1112 21.3%
Stora Enso (incl. Consolidated) 945 18.1%
Mead 515 9.8%
International Paper 500 9.6%
Repap 450 8.6%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
[Slide 38]
Largest Uncoated Mechanical Paper StoraEnso [Logo]
Producers in North America
[Bar Graph Reflecting Following Information:
North American
Production Capacity Percentage
`000 t (metric)
Abitibi (inc. Donohue) 1375 28.0%
Stora Enso (incl. Consolidated) 575 11.6%
Alliance Forest Products Inc. 345 7.0%
Pacifica 270 5.3%
Great Northern Paper 263 5.5%]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[Slide 39]
STORAENSO [LOGO]
Largest Shareholders in Stora Enso
Including Consolidated
% of shares % of votes
- -----------------------------------------------------------------------------
1. Finnish State 15.2 22.9
2. Investor AB 8.6 22.9
3. Robur 6.1 2.0
4. Mead Voting Trust 5.7 1.8
5. Franklin Resources 4.1 1.6
6. Bergslaget Foundation 3.1 8.7
7. Sampo-Varma Group 2.2 7.3
8. Fourth General Pension Fund 1.8 2.9
9. Sanford C. Bernstein 1.4 0.5
10. SPP Insurance Company 0.9 0.3
*) On 23 November
