Growth

engine Hannu Kasurinen, EVP, Building and Living

Wood with superior carbon footprint

g/k

g

Source: Puuinfo / Finnish Forest Industries

If European homes were built out of wood…

Source: Building information environmental declarations

100

80

60

40

20

0

6

MARKETS

Co

nstr

uctio

n v

alu

e in

20

10

price

s; 2

00

7 =

10

0

European construction market

Source: Euroconstruct 2011

Share in 2009, % 25 17 13 8 37

Share in 2020, % 20 18 20 5 37

% of growth, 2009-20 13 19 30 1 37

CAGR, %, 2009-20 2.8 5.5 9.1 0.6 4.9

Global construction market forecast

5400 bn €

9180 bn €

CAGR 4.9%

Source: Euroconstruct 2010

Global soft wood resources

Rethinking base sawn timber…

11

RETHINK

NPS development 2010 – 2012

12

2010 2011 2012

Building and Living Key Figures 2008 - 2011

-24

-11 -15

-18

-24

-9

9

15

5

30 25

10 12

35

10 6

-15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

-30

-20

-10

0

10

20

30

40

50

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

EBIT excl. NRI, ROOC% 2008 - 2011

EBIT, MEUR EBIT % (4 quarters average) ROOC % (4 quarters average) % MEUR

EBIT exc. NRI, ROOC% 2008-2011

Fixed costs 2008-2011

Sales 2010-2011

Sales 1000 eur/person 2010-2011

Building & Living compared with

competition EBIT%

14

15

PRODUCTS AND INNOVATION

Today…

…5-7 YEARS…

18

HOW TO WIN THIS GAME?

NORDIC –

importance in fibre

supply

BALTIC AND RUSSIA -

continue to develop

CENTRAL EUROPE -

maintain cash flow

Cash flow generation from base sawmilling

20

Overseas and distribution

expand offering by

external products based on

customer needs

Industrial components

expand outside of Nordic

region

take market share by modified

products

Growing with customers

Big potential Building solution

• from single family

houses to multi-

storey buildings

• Current focus in

Europe, grow with

customers in Japan

& China

• target to double,

even triple sales by

2015

10% increase in wood construction use…

• 78 500 new appartments

• using 25 m3 of CLT per appartment

2 million m3 more CLT

• 67 000 new building units

• using 50 m3 of CLT per unit

3,4 million m3 more CLT

1+2 FAMILY HOUSES MULTI-STOREY

Heat and lit for 29 years

24

TODAY by 2015

From saw milling to Building & Living

2007

Conclusions

Construction continues to grow globally

Wood winning market share

Continuous improvement for every unit every day

Cash flow generation from low cost saw mills

Growing with Building solutions, components and

modification

It should be noted that certain statements herein which are not historical facts. including. without

limitation those regarding expectations for market growth and developments; expectations for growth

and profitability; and statements preceded by “believes”. “expects”. “anticipates”. “foresees”. or similar

expressions. are forward-looking statements within the meaning of the United States Private Securities

Litigation Reform Act of 1995. Since these statements are based on current plans. estimates and

projections. they involve risks and uncertainties which may cause actual results to materially differ from

those expressed in such forward-looking statements. Such factors include. but are not limited to: (1)

operating factors such as continued success of manufacturing activities and the achievement of

efficiencies therein. continued success of product development. acceptance of new products or services

by the Group’s targeted customers. success of the existing and future collaboration arrangements.

changes in business strategy or development plans or targets. changes in the degree of protection

created by the Group’s patents and other intellectual property rights. the availability of capital on

acceptable terms; (2) industry conditions. such as strength of product demand. intensity of competition.

prevailing and future global market prices for the Group’s products and the pricing pressures thereto.

price fluctuations in raw materials. financial condition of the customers and the competitors of the

Group. the potential introduction of competing products and technologies by competitors; and (3)

general economic conditions. such as rates of economic growth in the Group’s principal geographic

markets or fluctuations in exchange and interest rates.

27