ILMARINEN JANUARY MARCH Press Conference / 24 April 2015

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1 ILMARINEN JANUARY MARCH 2015 Press Conference / 24 April

2 EXCELLENT INVESTMENT RETURN January March 2015 Investment return 7.1% Return on equity investments 14.9% Return on fixed income investments 1.2% Return on real estate investments 1.4% Long-term return at a good level Nominal return 6.2% Real return 4.4% Solvency strengthened clearly 2

3 KEY OBSERVATIONS ABOUT THE OPERATING ENVIRONMENT January March 2015 Return on equity was good in all of the main markets Interest rates fell to a record-low level and even into negative figures The euro continued to weaken against the US dollar In domestic real estate investments the vacancy rate of office premises remained high 3

level and even into negative figures The euro continued to weaken against the US

4 EUR million MARKET VALUE OF INVESTMENTS EUR 37 BILLION Asset allocation according to risk 40, ,000 30, ,000 20, ,000 10, , Osakesijoitukset Equities and shares Kiinteistösijoitukset Real estate Muut Other sijoitukset Fixed Korkosijoitukset income incl. ml. effect johdannaisten on derivatives vaikutus 4

5 % REAL RETURN ON INVESTMENTS IN THE LONG TERM 4.4% Net investment return at current value , ,7-14,0 Ilmarinen Muut Other Ilmarisen Ilmarinen s keskimääräinen annual average nimellistuotto nominal return (18 v) Ilmarisen Ilmarinen s keskimääräinen annual average reaalituotto real return (18 v) companies (18.25 years) (18.25 years) 5

3-4,0-10 -15-20 -17,7-14,0 Ilmarinen Muut Other Ilmarisen Ilmarinen s keskimääräinen annual average nimellistuotto nominal

6 % LONG-TERM REAL RETURN ROSE CLEARLY Cumulative return on investments March Ilmarisen Ilmarinen's reaalituotto real return 3,5 3.5% % reaalituottokertymä cumulative real return 4,04.0% % reaalituottokertymä cumulative real return 6

-12-13 -14 3 Ilmarisen Ilmarinen's reaalituotto real return 3,5 3.

7 % of technical provisions SOLVENCY ROSE TO HIGHEST LEVEL IN 2000s Solvency development Vakavaraisuuspääoma Solvency capital (Toimintapääoma v saakka) Tasausvastuusta Provision for pooled toimintapääomaan claims treated rinnastettava equal to solvency osa capital Vakavaraisuusraja Solvency limit 7

0 10 5 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 31.3. Vakavaraisuuspääoma Solvency capital (Toimintapääoma v.

8 RETURN ON INVESTMENTS JANUARY-MARCH 7.1% 8 Asset allocation and return Basic breakdown Risk Return EUR mill. % breakdown % % Volatility Fixed-income investments 17, , Loan receivables 1, , Bonds 14, , Public corporation bonds 5, , Other bonds 8, , Other money market instruments and deposits 1, , (incl. investment receivables and payables) Equities and shares 13, , Listed equities and shares 10, , Private equity investments 1, , Non-listed equities and shares 1, , Real estate investments 3, , Real estate investments 3, , Real estate funds and joint investments Other 2, , Hedge fund investments Commodity investments Other investments 1, , Investments total , Effect of derivatives Investments at current value 36, , The modified duration of bond investments is -1.8 year. The total return percentage includes income, expenses and operating expenses not allocated to any investment types.

2 Other money market instruments and deposits 1,669.2 4.5 8,985.4 24.3 10.4 (incl. investment receivables and payables) Equities and shares 13,928.6 37.6 14,461.8 39.1 14.

9 10-YEAR REAL RETURN 3.6 PER CENT Finnish equities European equities Euro government Euro corporate % Ilmarinen and shares and shares bonds bonds 3/ Average return over five years Average return over 10 years Average return since Real average return over five years Real average return over 10 years Real average return since

3/2015 7.1 18.4 16.7 9.4 1.4 2014 6.8 10.6 7.2 13.0 8.2 Average return over five years 6.5 11.4 11.8 7.5 5.

10 VARYING INVESTMENT RETURNS DEPENDING ON PERIOD 10

11 PROPORTION OF EQUITIES & SHARES FALLING SLIGHTLY Asset allocation development % Equities Osakesijoitukset and shares Real Kiinteistösijoitukset estate Muut Other sijoitukset Korkosijoitukset Fixed income incl. ml. effect johdannaisten on derivatives vaikutus 11

12 % FINNISH EQUITIES & SHARES INCREASED Geographical breakdown of equity investments Suomi Eurooppa USA Japani Kiina Kehittyvät markkinat Finland Europe USA Japan China Emerging markets excl. pl. Kiina China

Kehittyvät markkinat Finland Europe USA Japan China Emerging markets

13 FINNISH EQUITY HOLDINGS EUR 3.3 BILLION Most significant Finnish equity holdings EUR mill. 31 Mar Dec 2014 Sampo plc A Nokia Corporation UPM-Kymmene Corporation Kone Corporation Wärtsilä Corporation Citycon Oyj Stora Enso Oyj Metso Corporation Fortum Corporation Neste Oil Corporation Percentage 31 Mar Dec 2014 Digia Plc PKC Group Plc Basware Corporation Finnlines Oyj Technopolis Plc Talentum Plc Sotkamo Silver Ab Tikkurila Oyj CapMan Plc Martela Corporation

Oyj 133 117 Stora Enso Oyj 125 79 Metso Corporation 123 124 Fortum Corporation 114 81 Neste Oil Corporation 102 73 Percentage 31 Mar 2015 31 Dec 2014 Digia Plc 14.

14 14 Investment markets and economic outlook

15 CURRENT MARKET TOPICS Europe s economic outlook has emitted some promising signals Finland s growth outlook, on the other hand, remains weak Geopolitical crises have remained a focal area The oil price has risen somewhat from the bottom-most figures 15

hand, remains weak Geopolitical crises have remained a focal

16 OUTLOOK FOR THE REST OF 2015 Short-term interest rates continue at a record-low level and long-term interest rates are not expected to rise rapidly Strong volatility possible in share prices With interest rates at zero, investors are still heading towards the equity markets 16

rise rapidly Strong volatility possible in share prices With interest

17 FOR A BETTER LIFE. Twitter: ilmarinen_tweet Blog: 17

Note 24 Financial Risk Management

Note 24 Financial Risk Management Note Financial Risk Management Risk management principles and process Stora Enso is exposed to several financial market risks that the Group is responsible for managing under policies approved by the Board