Stora Enso in the digital world Teemu Salmi

Stora Enso in the digital world Teemu Salmi CIO and Head of digitalisation Stora Enso

Teemu Salmi

Stora Enso in brief • A leading provider of renewable solutions • Some 25 000 employees in 35 countries • Sales in 2016: EUR 9. 8 billion Consumer Board Biomaterials 25 000 Wood Products 35 Packaging Solutions Paper

The renewable materials company – our target Everything that’s made with fossil-based materials today can be made from a tree tomorrow

Transformation journey continues 2016: Growth businesses 67% of sales and 76% of operational EBIT Sales 2016 Sales 2006 -0. 03 0. 21 2% 30% 24% 33% 67% Consumer Board 0. 12 Packaging Solutions(1) 11% 0. 7 Biomaterials 14% 16% Wood Products Paper(2) EBIT 2016 EBIT 2006 -0. 03 0. 35 0. 62 0. 06 Other & eliminations 5% 38% 29% 24% 76% (1) In (2) In 10% 7% 25% 2006 included in Consumer Board 2006 includes merchants

Global megatrends drive the world’s demand for renewable materials Growing population Global warming Urbanisation Digitalisation Growing middle class Important enablers for digitalisation: • Mobility • Capital Changing lifestyles Eco-awareness

Strategy for transformation continues Stora Enso’s strategy is about sustainable profitable growth based on customer insights and innovation, supported by structured processes and motivated employees Digitalisation an enabler to increase the speed of transformation Customer insight Developing offerings according to customers’ requirements to create value and growth, with sales excellence. Structured processes Innovation Focus on bio-based materials and chemicals, digitalisation, intelligent packaging and new packaging solutions. Motivated employees Clear roles and responsibilities, standardised and harmonised working methods, operational excellence. Focus on inspiring leadership, good communication, performance management and target setting.

Digitalisation will: • Expand new business possibilities • Increase efficiency and productivity • Raise the motivation and curiousness among the employees • Bring innovation to new levels • Attract the right staff for the future

Early adopter > 50 years automation > 3 years digitalisation

Digitalisation strategy for focus and execution Industrial Digitalisation Production Stability Production Efficiency Supply Chain Efficiency Product Management & Development Digital Services and Customer Engagement Digital Products and Service Portfolio (Extending Offering) New Business Models (Ecosystems) Internal Business Process Efficiency Quality

Stora Enso’s Digital Fund 62 projects ongoing 11 Robotics Processes this year Predictive analytics increasing yield

Some digital examples

Intelligent packaging Connecting packages, products and value chains

Solutions and benefits Brand Protection Supply Chain • • • 15 Automated transactions Accurate real-time information Reduction of errors Condition tracking Data for process optimizations • • Product traceability Proof of authenticity Anti-counterfeiting Anti-tampering Customer Engagement • • Individual marketing: new channels/surfaces Real-time consumer feedback Consumer behavior analysis Improved repeat sales and brand loyalty

Innovation never happens in isolation - Stora Enso Accelerator program 1 Executive program to develop understanding and knowledge within our strategic competencies 2 Doing, living, and acting entrepreneurship side-by-side with real startups Sulapac LOOP 3 Co-development with start-ups of solutions in the area of digitalization Top Data Science 16 Trä Kronor Collective Crunch

“Om man vägrar att se bakåt och inte vågar se framåt, så måste man se upp” Tage Danielsson