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Suominen Corporation
Q3 2016 financial results
Nina Kopola, President & CEO
Tapio Engström, CFO
27 October 2016
Our purpose is to make nonwovens continuously better for people.
Agenda
• Highlights Q3 2016
• Strategy execution
• Financial review Q3 and outlook
• Summary
• Q&A
10/27/2016 2
Our purpose is to make nonwovens continuously better for people.
Q3: Net sales and operating profit fell short of the
comparison period, cash flow continued strong
10/27/2016 3
Operating profit*
EUR 7.9 million
Net sales
-10%
Cash flow**
EUR 8.3 million
EPS
EUR 0.09
Share of products w/
higher added value
63%
* Comparable operating profit
** Cash flow from operations
Our purpose is to make nonwovens continuously better for people.
Net sales fell short of the comparison period
Net sales, EUR million Net sales, EUR million
103.3
104.8
111.9112.9114.9
104.2103.9
108.8
103.8
0
20
40
60
80
100
120
356.9
373.7
401.8
444,0
0
100
200
300
400
500
2012 2013 2014 2015
• Customer deliveries fell short of our expectations in Q3.
• Net sales decreased from comparison period to EUR 103.8 million.
• Net sales was primarily impacted by the decline in sales volumes from the comparison period.
Continuing operations Continuing operations
10/27/2016 4
Our purpose is to make nonwovens continuously better for people.
8.4 %
5.9 %
5.0 %
8.8 %8.5 %
4.1 %5.3 %
8.0 %
7.6 %
0%
2%
4%
6%
8%
10%
0
2
4
6
8
10
Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
EUR million %
Positive development in product portfolio,
operating profit at 7.6%
Comparable operating profit Comparable operating profit
• The decline in net sales was reflected in the operating profit, which was EUR 7.9 million.
• A bad debt provision of approx. EUR 0.3 million relating to customers having operations in
Venezuela was recognized during Q3.
Continuing operations
4.2 %
5.2 %
6.7 % 7.0 %
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
5
10
15
20
25
30
35
2012 2013 2014 2015
EUR million %
Continuing operations
10/27/2016 5
Our purpose is to make nonwovens continuously better for people.
Strategy
execution
10/27/2016 6
Our purpose is to make nonwovens continuously better for people.
Strategy 2015–2017
10/27/2016 7
Our purpose is to make nonwovens continuously better for people.
Portfolio developed in accordance with the strategy –
Share of higher value-added products increased
10/27/2016 8
40%
24%
17%
11%
7%
37%
26%
18%
10%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Baby wipes Personal care wipes Household wipes Workplace wipes Hygiene & medical
products
Q1–Q3 2015 Q1–Q3 2016 Typically higher value-added products
Our purpose is to make nonwovens continuously better for people.
Growth investment program: Construction work of
the Bethune investment progressing full speed
10/27/2016 9
• The new production line in
Bethune will improve our
ability to serve higher value-
added product markets.
• We plan to begin customer
deliveries from the new
production line in Q1/2017.
Our purpose is to make nonwovens continuously better for people.
Deployment of global processes supported with
organizational change
• Global Operations function will be formed, with Mimoun
Saïm in charge.
- Previous divide in EMEA / Americas will cease to exist.
• New, global Operational Excellence function will be
established, with Larry L. Kinn in charge.
• The change allows production plants to focus even stronger
on Manufacturing and Supply on global basis.
• Operational Excellence concentrates on enhancing our Process
Technology and Health, Safety, Environment and Quality.
• The change will be effective as of 1 April 2017.
10/27/2016 10
Our purpose is to make nonwovens continuously better for people.
Sustainability is on the rise also on customers’
agenda
Supplier
Code of Conduct
implemented
Sustainable product
portfolio: Suominen
joins the
sustainability
network of a global
consumer goods
company
Non-
Discrimination
Program:
Blind hiring as a
default recruitment
process
Reaching
product leadership
Fostering responsibility
through the value chain
Operating sustainably
across the company
1110/27/2016
Our purpose is to make nonwovens continuously better for people.
5.0%
12.4%
15.7% 15.9%
12.3%
0%
5%
10%
15%
20%
2012 2013 2014 2015 Q3/2016
ROI, %
6.9%
3.5%
0.8%
0%
2%
4%
6%
8%
10%
12%
2013 2014 2015
Organic net sales growth, %
101,0 % 96.2%
34.7%
25.9% 28.0%
0%
20%
40%
60%
80%
100%
120%
2012 2013 2014 2015 Q3/2016
Gearing ratio, %
Progress with the mid-term financial targets
• Organic growth of net sales , excluding
currency effect, compared to previous
year. Indicator is reviewed only annually,
not quarterly.
• Target level marked with dashed line.
• Historical figures include continuing
operations.
10/27/2016 12
Our purpose is to make nonwovens continuously better for people.
Financial
review Q3
10/27/2016 13
Our purpose is to make nonwovens continuously better for people.
Profit for the period declined from the comparison
period
Profit for the period, EUR million Profit for the period, EUR million
0.6
4.8
3.5
6.2
5.4
1.9
3.4
5.2
4.9
0
1
2
3
4
5
6
7
-2.8
5.7
10.2
17.0
-5
0
5
10
15
20
Continuing operations Continuing operations
10/27/2016 14
2012 2013 2014 2015
• Decrease in financial expenses and income taxes improved the profit for the period.
Our purpose is to make nonwovens continuously better for people.
Consolidated statement of profit or loss
10/27/2016 15
EUR thousands 7-9/2016
7-9/
2015
1-9/
2016
1-9/
2015
1-12/
2015
Net sales 103,796 114,919 316,497 339,798 444,042
Cost of goods sold -89,316 -98,892 -275,223
-
293,069
-
386,042
Gross profit 14,480 16,027 41,274 46,728 58,000
Other operating income 485 782 1,584 2,634 2,637
Sales and marketing expenses -1,625 -1,692 -5,202 -5,350 -7,760
Research and development -1,136 -1,015 -2,968 -2,603 -3,527
Administration expenses -3,983 -3,887 -12,253 -12,746 -16,709
Other operating expenses -342 -452 -354 -1,146 -862
Operating profit 7,878 9,763 22,082 27,517 31,778
Net financial expenses -830 -1,247 -2,041 -3,944 -5,302
Profit before income taxes 7,048 8,517 20,041 23,573 26,476
Income taxes -2,108 -3,142 -6,441 -8,472 -9,456
Profit for the period 4,941 5,374 13,601 15,101 17,020
Earnings per share, EUR
Basic 0.09 0.10 0.26 0.29 0.32
Diluted 0.08 0.09 0.23 0.26 0.29
Q3 gross profit on a
healthy level (14%)
Fixed costs to net sales
ratio remained on
the level of 2015
Effective tax rate
has stabilized
Our purpose is to make nonwovens continuously better for people.
Consolidated statement of financial position, assets
EUR thousands 30.9.2016 30.9.2015 31.12.2015
Non-current assets
Goodwill 15,496 15,496 15,496
Intangible assets 13,912 12,462 13,275
Property, plant and equipment 109,785 91,743 97,931
Loan receivables 7,093 7,752 7,793
Available-for-sale assets 777 777 777
Other non-current receivables 2,298 2,206 2,402
Deferred tax assets 4,909 4,715 4,491
Total non-current assets 154,270 135,150 142,165
Current assets
Inventories 34,316 32,078 32,557
Trade receivables 53,200 60,360 51,547
Loan receivables 1,250 800 1,000
Other current receivables 6,830 5,036 7,038
Assets for current tax 2,495 1,807 1,874
Cash and cash equivalents 47,214 36,454 55,570
Total current assets 145,306 136,535 149,585
Total assets 299,575 271,685 291,750
10/27/2016 16
Growth investment
program visible
Our purpose is to make nonwovens continuously better for people.
Consolidated statement of financial position, equity
and liabilities
10/27/2016 17
Equity and liabilities 30.9.2016 30.9.2015 31.12.2015
Share capital 11,860 11,860 11,860
Share premium account 24,681 24,681 24,681
Reserve for invested unrestricted equity 69,732 69,652 69,652
Treasury shares -44 -44 -44
Fair value and other reserves 297 42 -118
Exchange differences 5,759 1,644 5,097
Other equity 5,164 -4,593 -3,076
Total equity attributable to owners of the parent 117,449 103,242 108,052
Hybrid bond 17,737 17,118 17,664
Total equity 135,186 120,360 125,716
Liabilities
Non-current liabilities
Deferred tax liabilities 10,697 9,864 10,890
Liabilities from defined benefit plans 1,061 1,151 1,105
Other non-current liabilities 387 538 651
Debentures 75,000 75,000 75,000
Other non-current interest-bearing liabilities 12,857 3,333 18,498
Total non-current liabilities 100,003 89,887 106,144
Current liabilities
Current interest-bearing liabilities 5,605 3,333 3,363
Liabilities for current tax 3,066 2,720 47
Trade payables and other current liabilities 55,716 55,385 56,479
Total current liabilities 64,386 61,438 59,889
Total liabilities 164,389 151,325 166,034
Total equity and liabilities 299,575 271,685 291,750
Equity ratio
45.1%
Our purpose is to make nonwovens continuously better for people.
Cash flow from operations improved from the
comparison period
Cash flow from operations, EUR million Cash flow from operations, EUR million
16.9
9.3
4.5 3.9
7.9
11.0
9.1
7.6 8.3
0
2
4
6
8
10
12
14
16
18
24.9
21.3
37.1
27.3
0
5
10
15
20
25
30
35
40
2012 2013 2014 2015
- Cash flow from the operations has been very stable and on a healthy level for all three
quarters of 2016; already near the level of full-year 2015.
10/27/2016 18
Our purpose is to make nonwovens continuously better for people.
Statement of cash flows (1/2)
10/27/2016 19
EUR thousands 1-9/2016
1-9/
2015
1-12/
2015
Cash flow from operations
Profit / loss for the period 13,601 15,101 17,020
Total adjustments to profit / loss for the period 22,957 25,238 32,870
Cash flow before changes in net working capital 36,558 40,339 49,890
Change in net working capital -3,857 -12,019 -7,921
Financial items -3,907 -6,672 -6,425
Income taxes -3,837 -5,371 -8,269
Cash flow from operations 24,957 16,277 27,274
Cash flow from investments
Investments in property, plant and equipment
and intangible assets
-24,293 -14,052 -22,369
Cash flow from disposed businesses 313 167 167
Adjustments of purchase consideration 161 − −
Sales proceeds from property, plant and
equipment and intangible assets
6 10 10
Cash flow from investments -23,814 -13,876 -22,192
We succeeded in
managing net
working capital
Our purpose is to make nonwovens continuously better for people.
Statement of cash flows (2/2)
10/27/2016 20
Cash flow from financing 1-9/2016
1-9/
2015
1-12/
2015
Drawdown of other non-current interest-
bearing liabilities
− − 15,000
Repayment of other non-current interest-bearing
liabilities
-3,280 -3,333 -3,333
Changes in current interest-bearing liabilities -52 -14 -14
Changes in loan receivables 450 250 600
Share issue − 340 340
Paid interest on hybrid bond -624 − −
Dividend distribution / distribution of funds -5,030 -2,504 -2,504
Cash flow from financing -8,536 -5,261 10,089
Change in cash and cash equivalents -7,392 -2,859 15,171
Cash and cash equivalents at the beginning of the
period
55,570 38,430 38,430
Effect of changes in exchange rates -963 883 1,968
Change in cash and cash equivalents -7,392 -2,859 15,171
Cash and cash equivalents at the end of the
period
47,214 36,454 55,570
Investment
payments depressed
cash and cash
equivalents
Our purpose is to make nonwovens continuously better for people.
Outlook for full year 2016 updated on 20 September
• On 20 September 2016, Suominen revised its outlook and
announced that it expects that for the full year 2016, its net
sales and comparable operating profit will not reach the
level of year 2015.
• In 2015, Suominen’s net sales amounted to EUR 444.0
million and comparable operating profit to EUR 31.2 million.
10/27/2016 21
Our purpose is to make nonwovens continuously better for people.10/27/2016 22
Summary
• The development of net sales and operating
profit did not meet our expectations. However,
our portfolio developed in the right direction
and the share of products with higher value-
added increased.
€ £ $ • Cash flow remained strong.
• Investment in a new production line in Bethune is
progressing. Customer deliveries from the new
production line estimated to commence in
Q1/2017.
Thank you!
We are ready to answer your
questions.
10/27/2016 23
Our purpose is to make nonwovens continuously better for people.
Appendix
10/27/2016 24
Our purpose is to make nonwovens continuously better for people.
Hybrid bond
• In February 2014, Suominen issued a convertible hybrid bond
of EUR 17.5 million.
• The holders of the bond notes are entitled to convert the
notes and the potential accrued capitalized interest related to
the notes into Suominen shares. The conversion period
started on 11 February 2014 and will end on 10 February
2018.
• No conversions were executed during the review period.
• The number of shares in Suominen may increase in total by
maximum of 7,600,320 shares on the basis of the conversion
of the remaining bond notes and the potential capitalized
interest, if the conversion is carried out by issuing new shares
in Suominen.
10/27/2016 25

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Suominen Corporation results presentation Q3 2016

  • 1. Suominen Corporation Q3 2016 financial results Nina Kopola, President & CEO Tapio Engström, CFO 27 October 2016
  • 2. Our purpose is to make nonwovens continuously better for people. Agenda • Highlights Q3 2016 • Strategy execution • Financial review Q3 and outlook • Summary • Q&A 10/27/2016 2
  • 3. Our purpose is to make nonwovens continuously better for people. Q3: Net sales and operating profit fell short of the comparison period, cash flow continued strong 10/27/2016 3 Operating profit* EUR 7.9 million Net sales -10% Cash flow** EUR 8.3 million EPS EUR 0.09 Share of products w/ higher added value 63% * Comparable operating profit ** Cash flow from operations
  • 4. Our purpose is to make nonwovens continuously better for people. Net sales fell short of the comparison period Net sales, EUR million Net sales, EUR million 103.3 104.8 111.9112.9114.9 104.2103.9 108.8 103.8 0 20 40 60 80 100 120 356.9 373.7 401.8 444,0 0 100 200 300 400 500 2012 2013 2014 2015 • Customer deliveries fell short of our expectations in Q3. • Net sales decreased from comparison period to EUR 103.8 million. • Net sales was primarily impacted by the decline in sales volumes from the comparison period. Continuing operations Continuing operations 10/27/2016 4
  • 5. Our purpose is to make nonwovens continuously better for people. 8.4 % 5.9 % 5.0 % 8.8 %8.5 % 4.1 %5.3 % 8.0 % 7.6 % 0% 2% 4% 6% 8% 10% 0 2 4 6 8 10 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 EUR million % Positive development in product portfolio, operating profit at 7.6% Comparable operating profit Comparable operating profit • The decline in net sales was reflected in the operating profit, which was EUR 7.9 million. • A bad debt provision of approx. EUR 0.3 million relating to customers having operations in Venezuela was recognized during Q3. Continuing operations 4.2 % 5.2 % 6.7 % 7.0 % 0% 1% 2% 3% 4% 5% 6% 7% 8% 0 5 10 15 20 25 30 35 2012 2013 2014 2015 EUR million % Continuing operations 10/27/2016 5
  • 6. Our purpose is to make nonwovens continuously better for people. Strategy execution 10/27/2016 6
  • 7. Our purpose is to make nonwovens continuously better for people. Strategy 2015–2017 10/27/2016 7
  • 8. Our purpose is to make nonwovens continuously better for people. Portfolio developed in accordance with the strategy – Share of higher value-added products increased 10/27/2016 8 40% 24% 17% 11% 7% 37% 26% 18% 10% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Baby wipes Personal care wipes Household wipes Workplace wipes Hygiene & medical products Q1–Q3 2015 Q1–Q3 2016 Typically higher value-added products
  • 9. Our purpose is to make nonwovens continuously better for people. Growth investment program: Construction work of the Bethune investment progressing full speed 10/27/2016 9 • The new production line in Bethune will improve our ability to serve higher value- added product markets. • We plan to begin customer deliveries from the new production line in Q1/2017.
  • 10. Our purpose is to make nonwovens continuously better for people. Deployment of global processes supported with organizational change • Global Operations function will be formed, with Mimoun Saïm in charge. - Previous divide in EMEA / Americas will cease to exist. • New, global Operational Excellence function will be established, with Larry L. Kinn in charge. • The change allows production plants to focus even stronger on Manufacturing and Supply on global basis. • Operational Excellence concentrates on enhancing our Process Technology and Health, Safety, Environment and Quality. • The change will be effective as of 1 April 2017. 10/27/2016 10
  • 11. Our purpose is to make nonwovens continuously better for people. Sustainability is on the rise also on customers’ agenda Supplier Code of Conduct implemented Sustainable product portfolio: Suominen joins the sustainability network of a global consumer goods company Non- Discrimination Program: Blind hiring as a default recruitment process Reaching product leadership Fostering responsibility through the value chain Operating sustainably across the company 1110/27/2016
  • 12. Our purpose is to make nonwovens continuously better for people. 5.0% 12.4% 15.7% 15.9% 12.3% 0% 5% 10% 15% 20% 2012 2013 2014 2015 Q3/2016 ROI, % 6.9% 3.5% 0.8% 0% 2% 4% 6% 8% 10% 12% 2013 2014 2015 Organic net sales growth, % 101,0 % 96.2% 34.7% 25.9% 28.0% 0% 20% 40% 60% 80% 100% 120% 2012 2013 2014 2015 Q3/2016 Gearing ratio, % Progress with the mid-term financial targets • Organic growth of net sales , excluding currency effect, compared to previous year. Indicator is reviewed only annually, not quarterly. • Target level marked with dashed line. • Historical figures include continuing operations. 10/27/2016 12
  • 13. Our purpose is to make nonwovens continuously better for people. Financial review Q3 10/27/2016 13
  • 14. Our purpose is to make nonwovens continuously better for people. Profit for the period declined from the comparison period Profit for the period, EUR million Profit for the period, EUR million 0.6 4.8 3.5 6.2 5.4 1.9 3.4 5.2 4.9 0 1 2 3 4 5 6 7 -2.8 5.7 10.2 17.0 -5 0 5 10 15 20 Continuing operations Continuing operations 10/27/2016 14 2012 2013 2014 2015 • Decrease in financial expenses and income taxes improved the profit for the period.
  • 15. Our purpose is to make nonwovens continuously better for people. Consolidated statement of profit or loss 10/27/2016 15 EUR thousands 7-9/2016 7-9/ 2015 1-9/ 2016 1-9/ 2015 1-12/ 2015 Net sales 103,796 114,919 316,497 339,798 444,042 Cost of goods sold -89,316 -98,892 -275,223 - 293,069 - 386,042 Gross profit 14,480 16,027 41,274 46,728 58,000 Other operating income 485 782 1,584 2,634 2,637 Sales and marketing expenses -1,625 -1,692 -5,202 -5,350 -7,760 Research and development -1,136 -1,015 -2,968 -2,603 -3,527 Administration expenses -3,983 -3,887 -12,253 -12,746 -16,709 Other operating expenses -342 -452 -354 -1,146 -862 Operating profit 7,878 9,763 22,082 27,517 31,778 Net financial expenses -830 -1,247 -2,041 -3,944 -5,302 Profit before income taxes 7,048 8,517 20,041 23,573 26,476 Income taxes -2,108 -3,142 -6,441 -8,472 -9,456 Profit for the period 4,941 5,374 13,601 15,101 17,020 Earnings per share, EUR Basic 0.09 0.10 0.26 0.29 0.32 Diluted 0.08 0.09 0.23 0.26 0.29 Q3 gross profit on a healthy level (14%) Fixed costs to net sales ratio remained on the level of 2015 Effective tax rate has stabilized
  • 16. Our purpose is to make nonwovens continuously better for people. Consolidated statement of financial position, assets EUR thousands 30.9.2016 30.9.2015 31.12.2015 Non-current assets Goodwill 15,496 15,496 15,496 Intangible assets 13,912 12,462 13,275 Property, plant and equipment 109,785 91,743 97,931 Loan receivables 7,093 7,752 7,793 Available-for-sale assets 777 777 777 Other non-current receivables 2,298 2,206 2,402 Deferred tax assets 4,909 4,715 4,491 Total non-current assets 154,270 135,150 142,165 Current assets Inventories 34,316 32,078 32,557 Trade receivables 53,200 60,360 51,547 Loan receivables 1,250 800 1,000 Other current receivables 6,830 5,036 7,038 Assets for current tax 2,495 1,807 1,874 Cash and cash equivalents 47,214 36,454 55,570 Total current assets 145,306 136,535 149,585 Total assets 299,575 271,685 291,750 10/27/2016 16 Growth investment program visible
  • 17. Our purpose is to make nonwovens continuously better for people. Consolidated statement of financial position, equity and liabilities 10/27/2016 17 Equity and liabilities 30.9.2016 30.9.2015 31.12.2015 Share capital 11,860 11,860 11,860 Share premium account 24,681 24,681 24,681 Reserve for invested unrestricted equity 69,732 69,652 69,652 Treasury shares -44 -44 -44 Fair value and other reserves 297 42 -118 Exchange differences 5,759 1,644 5,097 Other equity 5,164 -4,593 -3,076 Total equity attributable to owners of the parent 117,449 103,242 108,052 Hybrid bond 17,737 17,118 17,664 Total equity 135,186 120,360 125,716 Liabilities Non-current liabilities Deferred tax liabilities 10,697 9,864 10,890 Liabilities from defined benefit plans 1,061 1,151 1,105 Other non-current liabilities 387 538 651 Debentures 75,000 75,000 75,000 Other non-current interest-bearing liabilities 12,857 3,333 18,498 Total non-current liabilities 100,003 89,887 106,144 Current liabilities Current interest-bearing liabilities 5,605 3,333 3,363 Liabilities for current tax 3,066 2,720 47 Trade payables and other current liabilities 55,716 55,385 56,479 Total current liabilities 64,386 61,438 59,889 Total liabilities 164,389 151,325 166,034 Total equity and liabilities 299,575 271,685 291,750 Equity ratio 45.1%
  • 18. Our purpose is to make nonwovens continuously better for people. Cash flow from operations improved from the comparison period Cash flow from operations, EUR million Cash flow from operations, EUR million 16.9 9.3 4.5 3.9 7.9 11.0 9.1 7.6 8.3 0 2 4 6 8 10 12 14 16 18 24.9 21.3 37.1 27.3 0 5 10 15 20 25 30 35 40 2012 2013 2014 2015 - Cash flow from the operations has been very stable and on a healthy level for all three quarters of 2016; already near the level of full-year 2015. 10/27/2016 18
  • 19. Our purpose is to make nonwovens continuously better for people. Statement of cash flows (1/2) 10/27/2016 19 EUR thousands 1-9/2016 1-9/ 2015 1-12/ 2015 Cash flow from operations Profit / loss for the period 13,601 15,101 17,020 Total adjustments to profit / loss for the period 22,957 25,238 32,870 Cash flow before changes in net working capital 36,558 40,339 49,890 Change in net working capital -3,857 -12,019 -7,921 Financial items -3,907 -6,672 -6,425 Income taxes -3,837 -5,371 -8,269 Cash flow from operations 24,957 16,277 27,274 Cash flow from investments Investments in property, plant and equipment and intangible assets -24,293 -14,052 -22,369 Cash flow from disposed businesses 313 167 167 Adjustments of purchase consideration 161 − − Sales proceeds from property, plant and equipment and intangible assets 6 10 10 Cash flow from investments -23,814 -13,876 -22,192 We succeeded in managing net working capital
  • 20. Our purpose is to make nonwovens continuously better for people. Statement of cash flows (2/2) 10/27/2016 20 Cash flow from financing 1-9/2016 1-9/ 2015 1-12/ 2015 Drawdown of other non-current interest- bearing liabilities − − 15,000 Repayment of other non-current interest-bearing liabilities -3,280 -3,333 -3,333 Changes in current interest-bearing liabilities -52 -14 -14 Changes in loan receivables 450 250 600 Share issue − 340 340 Paid interest on hybrid bond -624 − − Dividend distribution / distribution of funds -5,030 -2,504 -2,504 Cash flow from financing -8,536 -5,261 10,089 Change in cash and cash equivalents -7,392 -2,859 15,171 Cash and cash equivalents at the beginning of the period 55,570 38,430 38,430 Effect of changes in exchange rates -963 883 1,968 Change in cash and cash equivalents -7,392 -2,859 15,171 Cash and cash equivalents at the end of the period 47,214 36,454 55,570 Investment payments depressed cash and cash equivalents
  • 21. Our purpose is to make nonwovens continuously better for people. Outlook for full year 2016 updated on 20 September • On 20 September 2016, Suominen revised its outlook and announced that it expects that for the full year 2016, its net sales and comparable operating profit will not reach the level of year 2015. • In 2015, Suominen’s net sales amounted to EUR 444.0 million and comparable operating profit to EUR 31.2 million. 10/27/2016 21
  • 22. Our purpose is to make nonwovens continuously better for people.10/27/2016 22 Summary • The development of net sales and operating profit did not meet our expectations. However, our portfolio developed in the right direction and the share of products with higher value- added increased. € £ $ • Cash flow remained strong. • Investment in a new production line in Bethune is progressing. Customer deliveries from the new production line estimated to commence in Q1/2017.
  • 23. Thank you! We are ready to answer your questions. 10/27/2016 23
  • 24. Our purpose is to make nonwovens continuously better for people. Appendix 10/27/2016 24
  • 25. Our purpose is to make nonwovens continuously better for people. Hybrid bond • In February 2014, Suominen issued a convertible hybrid bond of EUR 17.5 million. • The holders of the bond notes are entitled to convert the notes and the potential accrued capitalized interest related to the notes into Suominen shares. The conversion period started on 11 February 2014 and will end on 10 February 2018. • No conversions were executed during the review period. • The number of shares in Suominen may increase in total by maximum of 7,600,320 shares on the basis of the conversion of the remaining bond notes and the potential capitalized interest, if the conversion is carried out by issuing new shares in Suominen. 10/27/2016 25