Filed by Stora Enso Oyj
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. 001-11359
THE FOLLOWING IS A SLIDE PRESENTATION GIVEN BY STORA ENSO OYJ BEGINNING ON
MARCH 14, 2000
<PAGE>
[slide 1]
STORAENSO [LOGO]
[GRAPHIC OMITTED]
Stora Enso Acquires Consolidated Papers
<PAGE>
[slide 2]
STORAENSO [LOGO]
Cautionary statement
This presentation relating to the proposed acquisition of Consolidated Papers,
Inc. by Stora Enso Oyj 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 behavior
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 proposed 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 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.
<PAGE>
[slide 3]
STORAENSO [LOGO]
North America - Part of the Global Strategy
o Positions Stora Enso as a leader in the consolidation of the global forest
industry
o Positions Stora Enso as a market leader in high margin, fast growing
publication papers
o Creates a powerful platform for future growth
<PAGE>
STORAENSO [LOGO]
[slide 4]
Two World Class Companies
Consolidated
EUR billion, 1999 Stora Enso Papers Combined
- --------------------------------------------------------------------------------
Sales 10.6 1.7 12.4
EBITDA 2.3 0.3 2.6
Debt/equity ratio 0.9 0.6 0.8*
Paper and board capacity 13.3 2.0 15.3
`000 tonnes
No. of Employees 39.000 6.800 45.800
- --------------------------------------------------------------------------------
*) Adjusted for the sale of the power assets
<PAGE>
[slide 5]
Strategic Rationale
<PAGE>
[slide 6]
STORAENSO [LOGO]
Stora Enso - Combined With Consolidated Papers
o Leading market positions in each of three core product areas:
- publication papers (magazine paper and newsprint)
- fine paper
- packaging boards
o Global presence with operations in
- Europe
- North America
- Asia
o Integrated, world class assets
<PAGE>
[slide 7]
STORAENSO [LOGO]
Why Global?
o To serve global customers
- be global, act local
o To strengthen market position
- full access to world's largest paper markets
o To enhance economies of scale
- global purchasing power
- market leadership
- global benchmarking
o To enhance global operating flexibility
- currency
- resources: fibre and energy
- capacity utilization
- inventory management
<PAGE>
[slide 8]
STORAENSO [LOGO]
Why Consolidated Papers?
o Largest North American producer of coated printing paper
o Excellent product match in fastest growing paper grades
o Leading market positions in core grades
o Excellent sales and marketing network and market reputation in U.S. and
Canada
o Long-standing and high-quality customer base
o Strong management team with extensive coated paper experience
<PAGE>
[slide 9]
STORAENSO [LOGO]
Stora Enso's Leading Position
in Europe
[Pie Charts Reflecting the Following Information:
Coated Woodfree
18% (Total European Capacity 9.0 million mt/a)
Coated Mechanical
21% (Total European Capacity 8.4 million mt/a)
Uncoated Mechanical Incl. SC
14% (Total European Capacity 6.8 million mt/a) ]
<PAGE>
[slide 10]
STORAENSO [LOGO]
Now a Leader in North America
[Pie Charts Reflecting the Following Information:
Coated Woodfree
13% (Total North American Capacity 5.4 million mt/a)
Coated Mechanical
18% (Total North American Capacity 5.2 million mt/a)
Uncoated Mechanical Incl. SC
11% (Total North American Capacity 5.0 million mt/a) ]
<PAGE>
[slide 11]
Synergies and Integration
<PAGE>
[slide 12]
STORAENSO [LOGO]
Integration Plans
o Objective is to build on Consolidated Papers' track record and success
o Stora Enso intends to utilize its experience from earlier mergers
o An integration team has been formed to ensure the successful combination of
the two businesses, with start-up of March 22, 2000
<PAGE>
[slide 13]
STORAENSO [LOGO]
Tasks of the Integration Team
Objective is to maximize synergies
o Finance and IT
- accounting, financing, organizational set-up, IT-systems
o Operations
- analysis of operational efficiency, measurements, etc.
- benchmarking
o General
- purchasing, R&D, cost reduction plan
o Human resources
- staffing
- mission, vision and values
<PAGE>
[slide 14]
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
Based on initial estimates and due diligence
<PAGE>
[slide 15]
STORAENSO [LOGO]
Excellent Track Record in
Achieving Synergies
[Graph Reflecting the Following Information:
Initial Estimate/year Actual/year
Veitsiluoto EUR 67 million/'96 EUR 81 million/'97
Holtzmann EUR 29 million/'99 Over EUR 30 million/'99
Stora Enso (1 year) EUR 50 million/'99 EUR 113 million/'99
Stora Enso EUR 300 million/'02]
<PAGE>
[slide 16]
STORAENSO [LOGO]
Near Term Impact of
Consolidated Papers Acquisition
o First full year impact (2001)
- slightly dilutive to reported EPS
- accretive to cash EPS
o Return exceeds the cost of capital of 9%
- CP's normalized operating profit
- synergies on combined businesses
- performance improvement programs
<PAGE>
[slide 17]
STORAENSO [LOGO]
Financial Targets and Policies Remain Unchanged
o Profitability
- target ROCE 13% over the cycle
- in 1999 ROCE 12.3% vs WACC 9%
o Financial structure
- debt/equity ~ 0.8, expected to be reached in 2000
o Share buy back
- 5%, subject to AGM approval March 21
o Dividend policy
- 1/3 of net profit over the cycle
o Future acquisitions
<PAGE>
[slide 18]
Conclusion and Future
<PAGE>
[slide 19]
STORAENSO [LOGO]
A Great Acquisition for Stora Enso
o Moved early to establish its platform
o New Geography:
- leading European paper company expanding into world's largest paper
market
o Global Presence:
- increased global market presence provides stability and economies of
scale
o Narrow Product Line:
- excellent product match - narrow product mix focused on core grades
o North American Platform:
- creates a powerful North American platform for future growth
o Integration Expertise:
- proven track record successfully integrating acquired businesses
o Liquid ADR:
- establishes a liquid USD 2 billion ADR program in U.S.
- new acquisition currency in USD
<PAGE>
[slide 20]
STORAENSO [LOGO]
Paper Company Valuations Since Early 1999
Daly Data: Jan/01/1999 Through Mar/11/2000
[Graph illustrating changes in (a) Consolidated Papers enterprise value (in USD
millions) on the left vertical axis and (b) Consolidated Papers per share value
(in USD) on the right vertical axis in relation to changes in Stora Enso Series
R share price (in EUR) on the horizontal axis. The graph shows that at a Stora
Enso Series R share price of 12.15 EUR, approximately 164.5 million shares will
be issued and at a Stora Enso Series R share price of 16.43 EUR, approximately
121.6 million Stora Enso Series R shares will be issued.]
Assumes parity in exchange rate between USD and EUR
<PAGE>
[slide 21]
STORAENSO [LOGO]
Sensitivity of Value Received to Stora Enso Series R Market Price
[Graph illustrating changes in (a) Consolidated Papers enterprise value (in USD
millions) on the left vertical axis and (b) Consolidated Papers per share value
(in USD) on the right vertical axis in relation to changes in Stora Enso Series
R share price (in EUR) on the horizontal axis. The graph shows that at a Stora
Enso Series R share price of 12.15 EUR, approximately 164.5 million shares will
be issued and at a Stora Enso Series R share price of 16.43 EUR, approximately
121.6 million Stora Enso Series R shares will be issued.]
Assumes parity in exchange rate between USD and EUR
<PAGE>
[slide 22]
STORAENSO [LOGO]
Preliminary timetable*
June Distribute proxy material (F-4)
July Extraordinary shareholder meetings of
Stora Enso and Consolidated Papers
August Closing of the deal and listing of
the ADRs on the New York Stock Exchange
If ADRs are not registered and listed by October 31, 2000, Stora Enso will
complete the transaction with 100% cash at $44 per share
* Subject to regulatory and SEC approvals. Process is longer than typical
stock transactions due to the use of a new ADR program as acquisition
consideration.
<PAGE>
[slide 23]
STORAENSO [LOGO]
Conclusions
o Platform for future growth
- further synergies through additional acquisitions
o Global presence in core paper grades with highest market growth potential
o Improved efficiency with low capital expenditure
o An important strategic move crucial to long-term value
<PAGE>
[slide 24]
Additional
<PAGE>
[slide 25]
STORAENSO [LOGO]
Consolidated Papers in 1999
Sales, USD million 1.839
EBITDA, USD million 353
Operating profit, USD million 164
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
Also owns kraft pulp mills, forest land and power assets
<PAGE>
[slide 26]
STORAENSO [LOGO]
Stora Enso Figures After
the Acquisition
Balance sheet
Stora Enso Consolidated Combined Combined
Pro forma after sale
EUR billion Dec-99 Dec-99 Dec-99 of power
- --------------------------------------------------------------------------------
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
*) Includes EUR 2.8 billion of goodwill, associated with this acquisition
<PAGE>
[slide 27]
STORAENSO [LOGO]
Stora Enso & Consolidated Papers Combined Capacity Figures
[Pie Chart Reflecting the 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
Specialties 401]
Total Capacity 15.3 million tons
focus on four grades
Source: Jaakko Poyry
<PAGE>
[slide 28]
STORAENSO [LOGO]
Geographical Distribution of
Stora Enso's Paper & Board Production Capacity
[Pie Chart Reflecting the Following Information:
Finland 35%
Sweden 24%
North America 17%
Germany 15%
Other Europe 8%
Asia 1%]
Total Capacity 15.3 million tons
<PAGE>
[slide 29]
STORAENSO [LOGO]
Combined Sales by Paper and Board Grades
[Pie Chart Reflecting the Following Information:
Magazine Paper 22%
Newsprint 13%
Fine Paper 21%
Packaging Boards 22%
Others 24%]
EUR 12.4 billion
Source: Jaakko Poyry
<PAGE>
[slide 30]
STORAENSO [LOGO]
Largest Shareholders in Stora Enso (Including Consolidated)
if 140 million shares issued % 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. Extended Mead Family 5.7 1.8
5. Franklin Resources Inc. 4.1 1.6
6. Social Insurance
Institution of Finland 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
(Asset Mgmt.) 1.4 0.5
10. SPP Insurance Company 0.9 0.3
Assumes 50% / 50% cash/share distribution for all shareholders
<PAGE>
[slide 31]
STORAENSO [LOGO]
EPS Combination Analysis
Salomon Smith Barney Research Pre-transaction 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)
<PAGE>
[slide 32]
STORAENSO [LOGO]
Terms of the Transaction
Price: USD 44 per share
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
these share prices, the exchange
ratio is fixed and the value varies
<PAGE>
[slide 33]
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 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
<PAGE>
[slide 34]
STORAENSO [LOGO]
Indicative Value Received Per Share of Consolidated Papers
Stora Enso Implied Value
Share Price* Per CDP Share of Enterprise
- --------------------------------------------------------------------------------
EUR 10.00 USD 40.11 USD 4,518
EUR 11.00 USD 41.92 USD 4,683
EUR 12.15 USD 44.00 USD 4,872
EUR 14.29 USD 44.00 USD 4,872
EUR 16.43 USD 44.00 USD 4,872
EUR 17.50 USD 45.43 USD 5,003
EUR 18.50 USD 46.77 USD 5,125
- --------------------------------------------------------------------------------
* Assumes parity in exchange rate between USD and EUR
<PAGE>
[slide 35]
STORAENSO [LOGO]
Access to World's Largest
Paper Markets
Demand forecast 2000
[Pie Charts Reflecting the Following Information:
Coated Mechanical North America 36% Total 15.01 million t/a
Europe 45%
Japan 12%
Other Asia 4%
Others 3%
Coated Woodfree North America 18% Total 23.92 million t/a
Europe 37%
Japan 18%
Other Asia 16%
Others 5%
Uncoated Mechanical North America 38% Total 14.06 million t/a
Europe 42%
Japan 12%
Other Asia 4%
Others 4%]
Source: EMGE
<PAGE>
[slide 36]
STORAENSO [LOGO]
Industry Market Structure in
North America
[Chart Reflecting the Following Information:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
growth / annum Top 5 Total capacities
capacity share
Newsprint - 0.1 % 64 % 16 million tons/a
Uncoated woodfree 1.9 % 62 % 14 million tons/a
Containerboards 2.3 % 52 % 33 million tons/a
5 million tons/a
Uncoated groundwood 2.7 % 57 %
(incl. SC)
Coated Groundwood 3.0 % 67 % 5 million tons/a
Coated Woodfree 3.6 % 62 % 5 million tons/a]
Circle area describes total capacity
</TABLE>
Source: Jaakko Poyry
<PAGE>
[slide 37]
STORAENSO [LOGO]
Estimated Global Demand Growth for Paper and Paperboard by Grade 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
<PAGE>
[slide 38]
STORAENSO [LOGO]
Largest Forest Products Companies Worldwide by Revenue
[Bar Graph Reflecting Following Information:
Company Revenue
International Paper 24386
Georgia-Pacific 20956
Weyerhaeuser 13877
Champion International 13405
Stora Enso (incl.
Consolidated) 12498
Oji 10868
Nippon Paper 8168
SCA 7485
Smurfit Stone 7019
Willamette 3916
MUSD
Source: Salomon Smith Barney estimates for fiscal year 1999
<PAGE>
[slide 39]
STORAENSO [LOGO]
Largest Paper & Board Producers in the World (2000/1Q)
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Stora Enso (incl. Consolidated) 4.5 % 15270
International Paper 4.0 % 13570
Champion International 3.6 % 12011
Oji 2.2 % 7275
Abitibi (incl. Donahue) 2.1 % 7168
Smurfit Stone 2.1 % 7143
Georgia Pacific 2.1 % 7083
Nippon Paper 1.8 % 6082
SCA 1.8 % 6031
Asia Pulp & Paper 1.7 % 5624]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 40]
STORAENSO [LOGO]
Largest Coated Paper Producers in North America
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Stora Enso (incl. Consolidated) 15.6 % 1687
Champion International 15.4 % 1662
Mead 9.7 % 1048
Sappi 9.1 % 980
International Paper 7.5 % 810]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 41]
STORAENSO [LOGO]
Largest Coated Mechanical Paper Producers in North America
[ [Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Champion International 21.3 % 1112
Stora Enso (incl. Consolidated) 18.1 % 945
Mead 9.8 % 515
International Paper 9.6 % 500
Repap 8.6 % 450]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 42]
STORAENSO [LOGO]
Largest Uncoated Mechanical Paper Producers in North America
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Abitibi (incl. Donahue) 28.0 % 1375
Stora Enso (incl. Consolidated) 11.6 % 570
Alliance Forest Products Inc. 7.0 % 345
Pacifica 5.5 % 270
Great Northern Paper 5.3 % 263]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 43]
STORAENSO [LOGO]
Largest Coated Woodfree Paper Producers in North America
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Sappi 17.6 % 980
Stora Enso (incl. Consolidated) 13.4 % 742
Westvaco 11.0 % 613
Champion International 9.9 % 550
Mead 9.6 % 533]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 44]
STORAENSO [LOGO]
Largest Coated Mechanical Producers in the World (2000/1Q)
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Champion International 23.1 % 3714
Stora Enso (incl. Consolidated) 17.1 % 2740
Burgo 5.6 % 900
Metsaliitto 4.6 % 735
Oji 4.3 % 693
Myllykoski 3.4 % 545
Mead 3.2 % 515
International Paper 3.1 % 500
Repap 2.8 % 450
Sappi 2.6 % 425]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 45]
STORAENSO [LOGO]
Largest Uncoated Mechanical Producers in the World (2000/1Q)
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Stora Enso (incl. Consolidated) 13.7 % 1860
Champion International 12.0 % 1625
Abitibi (incl. Donahue) 10.1 % 1375
Myllykoski 6.0 % 820
Norske Skog 4.3 % 590
Haindl 3.2 % 430
Daishowa 2.7 % 370
Fletcher Challenge 2.6 % 360
Alliance 2.5 % 345
SCA 2.4 % 330]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 46]
STORAENSO [LOGO]
Largest Coated Woodfree Producers in the World (2000/1Q)
[Bar Graph Reflecting Following Information:
Percentage Capacity `000 t (metric)
Sappi 10.9 % 2818
Stora Enso (incl. Consolidated) 9.7 % 2500
Asia Pulp & Paper 5.8 % 1509
Champion International 5.0 % 1300
Oji 4.8 % 1250
Metsaliitto 4.4 % 1135
Lecta Europe 4.3 % 1116
Nippon Paper 3.1 % 794
International Paper 2.8 % 730
Burgo 2.8 % 730]
Percentage figures refer to share of capacity
Source: Jaakko Poyry, Stora Enso
<PAGE>
[slide 47]
STORAENSO [LOGO]
Stora Enso - Mill Locations
[MAP ILLUSTRATING LOCATIONS OF STORA ENSO'S MILLS]
[Consolidated Papers Mills, Stora Enso Mills and Stora Enso Saw Mills are
designated by different colors.]
<PAGE>
[slide 48]
STORAENSO [LOGO]
Decline in Valuation of Paper Companies Since Early January Peak
Daily Data: Jan/11/2000 Through Mar/11/2000
[Graph Illustrating change in price as Percent of Base Period on the vertical
axis and period from January 11, 2000 through March 11, 2000 on the horizontal
axis for the following companies: Stora Enso, International Paper, UPM-Kymmene
and Abitibi-Consolidated. February 22, 2000, the date on which transaction
between Stora Enso and Consolidated Papers was announced, is indicated by a
vertical line.]
