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Annual General Meeting 2015
Review by the President & CEO
Nina Kopola
President & CEO
Corporate Executive Team
and Corporate Leadership Team
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 2
Nina Kopola
President & CEO
Tapio Engström
CFO
Lynda A. Kelly
Care
Larry L. Kinn
Operations,
Americas
Timo Hiekkaranta
Convenience
Mimoun Saïm
Operations,
EMEA
Hannu Sivula
Human
Resources
Dan Dunbar
Sourcing
Anu Heinonen
Corporate
Comms & IR
Margareta Huldén
R&D
Roberto Pedoja
Technology
Timo Rautakorpi
CIO
Saara Söderberg
Marketing &
Product Mgmt
Contents
• Suominen and year 2014 at a glance
• Market review
• Financial review and outlook for 2015
• Implementation of the strategy in 2012–2014
• Strategy period 2015–2017
• Summary 2014
Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.19.3.2015 3
Suominen
and year 2014
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 4
Several successes in 2014
Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.19.3.2015 5
Divestment of the
Flexibles business
area – Suominen
became a 100%
nonwovens
company.
Expanded and
diversified
financing.
Profitability
improved
considerably and
financial position
strengthened.
Revised strategy
aims at profitable
growth.
Investment
program launched
to execute growth
strategy.
We expanded our
business to South
America.
New organization,
two business
areas.
• Main end use areas:
- Wiping (baby, household,
personal care ,
industrial wipes
- Travel & catering applications
• Net sales (2014): 369.4 M€, 92% of
Suominen’s net sales.
Two business areas - Convenience and Care
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 6
• Main end use areas:
- Hygiene products (femcare,
incontinence, diapers)
- Medical nonwovens (e.g. swabs,
undercast pads, surgical drapes
and masks)
• Net sales (2014): 32,3 M€, 8% of
Suominen’s net sales.
Convenience Care
Suominen
18%
Kimberly-
Clark
11%
Jacob Holm
9%
Sandler
8%PGI
5%
Other
49%
Suominen #1
Wiping ~2.1 billion euros
Global nonwovens market
totaling ~26 billion euros
We are a global leader in nonwovens for wipes
• Kimberly-Clark
• PGI
• Fiberweb
• First Quality
• Pegas
• Kimberly-Clark
• Ahlstrom
• Freudenberg
• DuPont
• First Quality
Upholstery
10%
Other
27%
Building/roofing
7%
Filtration
9%
Floor coverings
6%
Automotive
5%
Wiping
8%
Medical
3%
Hygiene
25%
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 7
Fast transformation into a nonwovens company with
operations in three continents
2011
Three lines of
business :
Nonwovens
Flexibles
Codi Wipes
11/1/2011
Ahlstrom
Home&Personal
acquisition
7/15/2013
Divestment of
Codi Wipes
2/10/2014
Acquisition
of Brazilian unit
7/14/2014
Divestment of
Flexibles
business area
Net sales by line of business and geographical coverage from 2011 to date.
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 8
Suominen is one of the largest nonwoven
manufacturers globally
0
1
2
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 9
Source:NonwovensIndustry
Net sales, billion USD
Expanded and diversified financing
Gearing, % Gearing, %
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 10
174,0
111,0
101,0 96,2
34,7
0
50
100
150
200
2010 2011 2012 2013 2014
• Strengthened balance sheet enabled refinancing.
• Target range for gearing between 40 and 80%.
79,3
71,4
43,3
34,7
0
10
20
30
40
50
60
70
80
90
Q1/14 Q2/14 Q3/14 Q4/14
Suominen’s purpose
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 11
Our purpose is
to make nonwovens continuously better
for people.
Market
review
Historically, growth in the demand for nonwovens
has exceeded the growth of the GDP
USA Europe
-4%
-2%
0%
2%
4%
6%
8%
10%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
GDP Nonwoven demand
2014–2016 GDPs are forecasted.
In Europe, GDP growth is for euro area.
For nonwovens demand, the graphs illustrate the change in the value (USD) of nonwoven demand; 2006–2010 actual, 2011–2015
forecasted.
-10%
-5%
0%
5%
10%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
GDP Nonwoven demand
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 13
Demand for Suominen nonwovens is expected
to grow globally
3/19/2015 14
+2%
+7%
+2–6%
+7%
+8%
Global growth rate ~5%
Growth rate for Suominen regions ~3%
Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.
Aging population
Everyday convenience
Health and well-being
trends
Growing
population and
middle class
Growing
population and
middle class
Demand for Suominen’s products is growing both in
emerging and developed markets
Household wipes
Incontinence products
Baby wipes
Disposable diapers
Feminine care products
USD 14 000+
USD 7 000+
USD 10 000+
USD 4 000+
GDP per capita
USD 1 000+
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 15
Financial
review 2014
Net sales grew markedly
Net sales, M€
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 17
- FY2014: Net sales grew by 7.5% and organically by 3.5%.
55,7
98,3
356,9 373,7 401,8
0
100
200
300
400
500
2010 2011 2012 2013 2014
Continuing operations.
Significant improvement in operating profit excl.
non-recurring items
Operating profit excl. NRI, M€ and %
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 18
- The share of products with higher added value increased, which was reflected in gross profit and
further in operating profit – both in the fourth quarter and FY 2014.
- During the strategy period of 2012–2014, Suominen reported improved operating profit on eleven
quarters (out of twelve).
Continuing operations.
6,5 % -4,4%
4,2% 5,2%
6,7%
-10%
-5%
0%
5%
10%
-10
0
10
20
30
2010 2011 2012 2013 2014
M€ %
Profit for the period reached a new level
Profit for the period, M€
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 19
Continuing operations.
-12,0 -11,8
-2,8
5,7
10,2
-15
-10
-5
0
5
10
15
2010 2011 2012 2013 2014
Strong cash flow from operations
Cash flow from operations, M€
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 20
Continuing operations.
-2,5 -2,9
24,9
21,3
37,1
-10
0
10
20
30
40
2010 2011 2012 2013 2014
Outlook for 2015
• Suominen expects that for the full year 2015, its net sales and
operating profit excluding non-recurring items will improve
from year 2014.
• In 2014, Suominen’s net sales amounted to EUR 401.8 million
and operating profit excluding non-recurring items to EUR
26.9 million.
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 21
Implementation
of the strategy
in 2012–2014
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 22
We have systematically implemented our strategy
How we operate
In the
Lead
Step Change
in Profitability
Suominen
Way
How we work How we win
We have taken several measures to advance each
cornerstone
o Compensation & Benefits
scheme
o The Behavior Matrix
o New organization
o Refreshed visual identity
o “Behavior Based Safety”
program
o Defining sustainability
strategy
o Structural cost savings
o Enhanced supply chain and
increased flexibility
o Cost-conscious way of
working
o Renewed corporate structure
o Expansion to South America
o Investments in capacity in
higher-value-added
nonwovens in the U.S.
o Developed and expanded
product portfolio
o “We Love Wipes” dialogue
Suominen
Way
Step Change in
Profitability
In the
Lead
How we winHow we operateHow we work
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 24
41%
17%
11%
21%
8% 2%
Baby Household Industrial Personal care Medical & hygiene Other
2014: 401.8 M€
Typically products high value-adding products
Convenience 92%, Care 8%
Targeted development of product portfolio
continued*
2013: 373.7 M€
* The share of baby care wiping grew due to acquisition of Paulínia plant.
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 25
41%
18%
12%
22%
7%
Financial targets were met
• Clearly improve relative profitability. The target level of
the company’s return on investment (ROI) is to be above
12%. (FY/2014, continuing operations: 15,7%).
• Have a solid capital structure with a gearing ratio
principally between 40% and 80%. (FY/2014: 34,7%).
• Increase net sales organically at a rate that exceeds the
average growth rate of the industry. (In 2013,
Suominen’s net sales from nonwovens business grew
3.5%.)
0
5
10
15
20
0
20
40
60
80
100
0
2
4
6
8
10
ROI, %
GEARING, %
NET SALES GROWTH, %
FY 2014
Target
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 26
Strategy
period
2015–2017
In this strategy period, emphasis is on In the Lead
cornerstone – we aim to grow and win the game
How we operate
In the
Lead
Step Change
in Profitability
Suominen
Way
How we work How we win
28
Market Driven Product Leader
Suominen’s vision is to be a
Understanding the end user remains
in the heart of our strategy
Fiber
producer
Nonwovens manufacturer
Brand owner
Converter
Retailer
Primary
production
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 30
41%
17%
11%
21%
8%
2% 2014 (401.8 M€)
Baby Household Industrial Personal care Medical & hygiene Other
We aim at major shift in product portfolio
2017 (~500 M€) Illustrative
Suominen’s nonwovens sales by major end use applications
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 31
Each selected application has a role to play
in the strategy
Flushables
Baby care
3/19/2015
Personal care
Industrial
Household
Travel and catering
GrowthpotentialinrelevantmarketregionsforSuominen.
Medical
Hygiene
Relative growth potential Attractiveness
MARKET GROWTH POTENTIAL
HIGH
MEDIUM
MEDIUM TO HIGH
MEDIUM
MEDIUM TO HIGH
HIGH
HIGH
HIGH
MEDIUM TO HIGH
MEDIUM
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
HIGHMEDIUMLOW
Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 32
We will achieve our vision to be a Market Driven
Product Leader if we…
19.3.2015 33Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.
Evolve culture and capabilities to build strong
product company1
Execute demand driven supply chain2
Drive proactive key account management for
mutual value creation
3
Deliver superior value in thoughtfully selected
market applications
4
Our growth investment program supports
the execution of the strategy
Extend
geo-
graphical
reach
Acquisitions
Not in focus in the strategy
period 2015–2017
Sustain &
improve
“Retrofit” Expand
Projected growth investments
30–50 M€ until 2017
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 34
Growth investment program launched swiftly
19.3.2015 35Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.
Paulínia, Brazil
North America
Nakkila, Finland
Alicante, Spain
Sustainability agenda 2015–2017
Long-term
relations with
customers &
suppliers
Suominen’s purpose and vision
Innovation
Development of
sustainable
products
Competence
development
Non-discrimination
Material &
resource efficiency
Achieving
product leadership
Fostering responsibility
throughout the value chain
Operating sustainably
throughout the organization
3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 36
Together with the strategy update, the Board of
Directors approved Suominen’s dividend policy
• Suominen’s policy is to distribute approximately 30% of its
profit for the period in annual dividends.
• In assessing its proposal for the payment of dividends, the
company’s Board of Directors will also consider Suominen’s
future investment needs and the solidity of its financial
position.
• The Board of Directors proposes to the Annual General
Meeting a EUR 0.01 per share distribution of funds.
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 37
Suominen’s strategy 2015–2017
• Deliver superior value in thoughtfully selected
market applications.
• Drive proactive key account management for
mutual value creation.
• Execute demand driven supply chain.
• Evolve culture and capabilities to build strong
product company.
Market Driven Product Leader
Our purpose is to make nonwovens continuously better for people.
• Organic net sales growth at a rate that
exceeds the industry average (approx. 3%)
• A return on investment of more than 12%
• A gearing ratio between 40% and 80%
Purpose – why?
Vision – where?
Strategy – how?
19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 38
Financial targets
Summary 2014
Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.19.3.2015 39
Divestment of the
Flexibles business
area – Suominen
became a 100%
nonwovens
company.
Expanded and
diversified
financing.
Profitability
improved
considerably and
financial position
strengthened.
Revised strategy
aims at profitable
growth.
Investment
program launched
to execute growth
strategy.
We expanded our
business to South
America.
New organization,
two business
areas.
Thank you!

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Suominen's Annual General Meeting 2015

  • 1. Annual General Meeting 2015 Review by the President & CEO Nina Kopola President & CEO
  • 2. Corporate Executive Team and Corporate Leadership Team 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 2 Nina Kopola President & CEO Tapio Engström CFO Lynda A. Kelly Care Larry L. Kinn Operations, Americas Timo Hiekkaranta Convenience Mimoun Saïm Operations, EMEA Hannu Sivula Human Resources Dan Dunbar Sourcing Anu Heinonen Corporate Comms & IR Margareta Huldén R&D Roberto Pedoja Technology Timo Rautakorpi CIO Saara Söderberg Marketing & Product Mgmt
  • 3. Contents • Suominen and year 2014 at a glance • Market review • Financial review and outlook for 2015 • Implementation of the strategy in 2012–2014 • Strategy period 2015–2017 • Summary 2014 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.19.3.2015 3
  • 4. Suominen and year 2014 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 4
  • 5. Several successes in 2014 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.19.3.2015 5 Divestment of the Flexibles business area – Suominen became a 100% nonwovens company. Expanded and diversified financing. Profitability improved considerably and financial position strengthened. Revised strategy aims at profitable growth. Investment program launched to execute growth strategy. We expanded our business to South America. New organization, two business areas.
  • 6. • Main end use areas: - Wiping (baby, household, personal care , industrial wipes - Travel & catering applications • Net sales (2014): 369.4 M€, 92% of Suominen’s net sales. Two business areas - Convenience and Care 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 6 • Main end use areas: - Hygiene products (femcare, incontinence, diapers) - Medical nonwovens (e.g. swabs, undercast pads, surgical drapes and masks) • Net sales (2014): 32,3 M€, 8% of Suominen’s net sales. Convenience Care
  • 7. Suominen 18% Kimberly- Clark 11% Jacob Holm 9% Sandler 8%PGI 5% Other 49% Suominen #1 Wiping ~2.1 billion euros Global nonwovens market totaling ~26 billion euros We are a global leader in nonwovens for wipes • Kimberly-Clark • PGI • Fiberweb • First Quality • Pegas • Kimberly-Clark • Ahlstrom • Freudenberg • DuPont • First Quality Upholstery 10% Other 27% Building/roofing 7% Filtration 9% Floor coverings 6% Automotive 5% Wiping 8% Medical 3% Hygiene 25% 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 7
  • 8. Fast transformation into a nonwovens company with operations in three continents 2011 Three lines of business : Nonwovens Flexibles Codi Wipes 11/1/2011 Ahlstrom Home&Personal acquisition 7/15/2013 Divestment of Codi Wipes 2/10/2014 Acquisition of Brazilian unit 7/14/2014 Divestment of Flexibles business area Net sales by line of business and geographical coverage from 2011 to date. 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 8
  • 9. Suominen is one of the largest nonwoven manufacturers globally 0 1 2 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 9 Source:NonwovensIndustry Net sales, billion USD
  • 10. Expanded and diversified financing Gearing, % Gearing, % 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 10 174,0 111,0 101,0 96,2 34,7 0 50 100 150 200 2010 2011 2012 2013 2014 • Strengthened balance sheet enabled refinancing. • Target range for gearing between 40 and 80%. 79,3 71,4 43,3 34,7 0 10 20 30 40 50 60 70 80 90 Q1/14 Q2/14 Q3/14 Q4/14
  • 11. Suominen’s purpose 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 11 Our purpose is to make nonwovens continuously better for people.
  • 13. Historically, growth in the demand for nonwovens has exceeded the growth of the GDP USA Europe -4% -2% 0% 2% 4% 6% 8% 10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 GDP Nonwoven demand 2014–2016 GDPs are forecasted. In Europe, GDP growth is for euro area. For nonwovens demand, the graphs illustrate the change in the value (USD) of nonwoven demand; 2006–2010 actual, 2011–2015 forecasted. -10% -5% 0% 5% 10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 GDP Nonwoven demand 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 13
  • 14. Demand for Suominen nonwovens is expected to grow globally 3/19/2015 14 +2% +7% +2–6% +7% +8% Global growth rate ~5% Growth rate for Suominen regions ~3% Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. Aging population Everyday convenience Health and well-being trends Growing population and middle class Growing population and middle class
  • 15. Demand for Suominen’s products is growing both in emerging and developed markets Household wipes Incontinence products Baby wipes Disposable diapers Feminine care products USD 14 000+ USD 7 000+ USD 10 000+ USD 4 000+ GDP per capita USD 1 000+ 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 15
  • 17. Net sales grew markedly Net sales, M€ 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 17 - FY2014: Net sales grew by 7.5% and organically by 3.5%. 55,7 98,3 356,9 373,7 401,8 0 100 200 300 400 500 2010 2011 2012 2013 2014 Continuing operations.
  • 18. Significant improvement in operating profit excl. non-recurring items Operating profit excl. NRI, M€ and % 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 18 - The share of products with higher added value increased, which was reflected in gross profit and further in operating profit – both in the fourth quarter and FY 2014. - During the strategy period of 2012–2014, Suominen reported improved operating profit on eleven quarters (out of twelve). Continuing operations. 6,5 % -4,4% 4,2% 5,2% 6,7% -10% -5% 0% 5% 10% -10 0 10 20 30 2010 2011 2012 2013 2014 M€ %
  • 19. Profit for the period reached a new level Profit for the period, M€ 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 19 Continuing operations. -12,0 -11,8 -2,8 5,7 10,2 -15 -10 -5 0 5 10 15 2010 2011 2012 2013 2014
  • 20. Strong cash flow from operations Cash flow from operations, M€ 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 20 Continuing operations. -2,5 -2,9 24,9 21,3 37,1 -10 0 10 20 30 40 2010 2011 2012 2013 2014
  • 21. Outlook for 2015 • Suominen expects that for the full year 2015, its net sales and operating profit excluding non-recurring items will improve from year 2014. • In 2014, Suominen’s net sales amounted to EUR 401.8 million and operating profit excluding non-recurring items to EUR 26.9 million. 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 21
  • 22. Implementation of the strategy in 2012–2014 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 22
  • 23. We have systematically implemented our strategy How we operate In the Lead Step Change in Profitability Suominen Way How we work How we win
  • 24. We have taken several measures to advance each cornerstone o Compensation & Benefits scheme o The Behavior Matrix o New organization o Refreshed visual identity o “Behavior Based Safety” program o Defining sustainability strategy o Structural cost savings o Enhanced supply chain and increased flexibility o Cost-conscious way of working o Renewed corporate structure o Expansion to South America o Investments in capacity in higher-value-added nonwovens in the U.S. o Developed and expanded product portfolio o “We Love Wipes” dialogue Suominen Way Step Change in Profitability In the Lead How we winHow we operateHow we work 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 24
  • 25. 41% 17% 11% 21% 8% 2% Baby Household Industrial Personal care Medical & hygiene Other 2014: 401.8 M€ Typically products high value-adding products Convenience 92%, Care 8% Targeted development of product portfolio continued* 2013: 373.7 M€ * The share of baby care wiping grew due to acquisition of Paulínia plant. 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 25 41% 18% 12% 22% 7%
  • 26. Financial targets were met • Clearly improve relative profitability. The target level of the company’s return on investment (ROI) is to be above 12%. (FY/2014, continuing operations: 15,7%). • Have a solid capital structure with a gearing ratio principally between 40% and 80%. (FY/2014: 34,7%). • Increase net sales organically at a rate that exceeds the average growth rate of the industry. (In 2013, Suominen’s net sales from nonwovens business grew 3.5%.) 0 5 10 15 20 0 20 40 60 80 100 0 2 4 6 8 10 ROI, % GEARING, % NET SALES GROWTH, % FY 2014 Target 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 26
  • 28. In this strategy period, emphasis is on In the Lead cornerstone – we aim to grow and win the game How we operate In the Lead Step Change in Profitability Suominen Way How we work How we win 28
  • 29. Market Driven Product Leader Suominen’s vision is to be a
  • 30. Understanding the end user remains in the heart of our strategy Fiber producer Nonwovens manufacturer Brand owner Converter Retailer Primary production 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 30
  • 31. 41% 17% 11% 21% 8% 2% 2014 (401.8 M€) Baby Household Industrial Personal care Medical & hygiene Other We aim at major shift in product portfolio 2017 (~500 M€) Illustrative Suominen’s nonwovens sales by major end use applications 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 31
  • 32. Each selected application has a role to play in the strategy Flushables Baby care 3/19/2015 Personal care Industrial Household Travel and catering GrowthpotentialinrelevantmarketregionsforSuominen. Medical Hygiene Relative growth potential Attractiveness MARKET GROWTH POTENTIAL HIGH MEDIUM MEDIUM TO HIGH MEDIUM MEDIUM TO HIGH HIGH HIGH HIGH MEDIUM TO HIGH MEDIUM HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW HIGHMEDIUMLOW Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 32
  • 33. We will achieve our vision to be a Market Driven Product Leader if we… 19.3.2015 33Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. Evolve culture and capabilities to build strong product company1 Execute demand driven supply chain2 Drive proactive key account management for mutual value creation 3 Deliver superior value in thoughtfully selected market applications 4
  • 34. Our growth investment program supports the execution of the strategy Extend geo- graphical reach Acquisitions Not in focus in the strategy period 2015–2017 Sustain & improve “Retrofit” Expand Projected growth investments 30–50 M€ until 2017 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 34
  • 35. Growth investment program launched swiftly 19.3.2015 35Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. Paulínia, Brazil North America Nakkila, Finland Alicante, Spain
  • 36. Sustainability agenda 2015–2017 Long-term relations with customers & suppliers Suominen’s purpose and vision Innovation Development of sustainable products Competence development Non-discrimination Material & resource efficiency Achieving product leadership Fostering responsibility throughout the value chain Operating sustainably throughout the organization 3/19/2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 36
  • 37. Together with the strategy update, the Board of Directors approved Suominen’s dividend policy • Suominen’s policy is to distribute approximately 30% of its profit for the period in annual dividends. • In assessing its proposal for the payment of dividends, the company’s Board of Directors will also consider Suominen’s future investment needs and the solidity of its financial position. • The Board of Directors proposes to the Annual General Meeting a EUR 0.01 per share distribution of funds. 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 37
  • 38. Suominen’s strategy 2015–2017 • Deliver superior value in thoughtfully selected market applications. • Drive proactive key account management for mutual value creation. • Execute demand driven supply chain. • Evolve culture and capabilities to build strong product company. Market Driven Product Leader Our purpose is to make nonwovens continuously better for people. • Organic net sales growth at a rate that exceeds the industry average (approx. 3%) • A return on investment of more than 12% • A gearing ratio between 40% and 80% Purpose – why? Vision – where? Strategy – how? 19.3.2015 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications. 38 Financial targets
  • 39. Summary 2014 Suominen is a globally leading supplier of nonwovens for wiping, hygiene and medical applications.19.3.2015 39 Divestment of the Flexibles business area – Suominen became a 100% nonwovens company. Expanded and diversified financing. Profitability improved considerably and financial position strengthened. Revised strategy aims at profitable growth. Investment program launched to execute growth strategy. We expanded our business to South America. New organization, two business areas.