suominen roadshow presentation, london, 28 oct 2015

Suominen Corporation: Profitable growth through product leadership 28 October 2015 London Nina Kopola, President & CEO Tapio Engström, CFO

Contents

• Suominen in brief • Markets • Financials Q3/2015 • Strategy 2015–2017 and the growth investment program • Summary

10/28/2015 Our purpose is to make nonwovens continuously better for people. 2

Suominen in brief

Fast facts

8 plants in 3 continents 600 employees

Net sales 401.8 M€ in 2014

Over 60 % of sales from Americas

2 business

areas

100% nonwovens


Suominen product features


Our manufacturing facilities meet even the most stringent quality requirements


Our nonwovens are converted into consumer as well as professional applications


• Main end use areas:

- Hygiene products (femcare, incontinence, diapers)

- Medical nonwovens (e.g. swabs, undercast pads, surgical drapes and masks)

• Net sales of the business area (2014) 32.3 M€

• Main end use areas:

- Wiping (baby, household, personal care , industrial wipes

- Travel & catering applications

• Suominen is the global leader in nonwovens for wiping applications

• Net sales of the business area

(2014): 369.4 M€

Convenience business area

Today, Suominen is a 100% nonwovens company with two business areas

Care business area

Eight nonwovens plants in three continents serving both business areas

~90% of Suominen’s net sales ~10% of Suominen’s net sales


Locations in three continents close to customers

Green Bay, WI, USA

Windsor Locks, CT, US

Bethune, SC, US

Paulínia, Brazil

Alicante, Spain

Mozzate, Italy

Nakkila, Finland

Cressa, Italy

Helsinki, Finland (Head office)

Sales representatives present in several locations in Asia Pacific


We executed a 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.


Markets

Historically, growth in 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

2015 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

12 Our purpose is to make nonwovens continuously better for people. 10/28/2015

Demand for Suominen nonwovens is expected to grow globally

+2%

+7%

+2–6%

+7% +8%

Global growth rate ~5% Growth rate for Suominen regions ~3%

Aging population Everyday convenience Health and well-being trends

Growing population and middle class

Growing population and middle class


Household wipes

Incontinence products

Baby wipes

Disposable diapers

Feminine care products

Demand for Suominen’s products is growing both in emerging and developed markets

USD 14 000+

USD 7 000+

USD 10 000+

USD 4 000+

GDP per capita

USD 1 000+


We are the global leader in nonwovens for wipes

Suominen #1 Wiping ~2.1 billion euros

Other key producers • Kimberly-Clark • Jacob Holm • Sandler • AVINTIV

Suominen 18%

Global nonwovens market totaling ~26 billion euros

Other key producers • Kimberly-Clark • AVINTIVv (ex-PGI) • Fiberweb • First Quality Nonwovens • Pegas Nonwovens

Other key producers • Kimberly-Clark • Ahlstrom • Freudenberg • DuPont • First Quality Nonwovens

Upholstery 10%

Other 27%

Building/roofing 7%

Filtration 9%

Floor coverings 6%

Automotive 5%

Wiping 8%

Medical 3%

Hygiene 25%


Financials Q3/2015

Our purpose is to make nonwovens continuously better for people.

Q3: Net sales increased by 11%

Net sales, M€

Net sales, M€

93.5 89.8 98.4 95.3 103.3 104.8 111.9

112.9 114.9

0

20

40

60

80

100

120

140

55.7 98.3

356.9 373.7 401.8

050

100150200250300350400450

2010 2011 2012 2013 2014

- Net sales grew by 11.3% in Q3 from the comparison period , mostly due to the strengthening of the USD compared to euro.

Continuing operations Continuing operations

10/28/2015 17


4.9% 5.0%

5.0 %

4.6%

6.5% 5.8%

8.4%

5.9% 6.5%

8.8% 8.5%

0%

2%

4%

6%

8%

10%

0

2

4

6

8

10

12

M€ %

Operating profit excl. NRI, M€ and % Operating profit excl. NRI, M€ and %

- Operating profit grew from the comparison period as USD strengthened.

Continuing operations

-6.5% -4.4%

4.2%

5.2%

6.7%

-8%-6%-4%-2%0%2%4%6%8%

-10-505

1015202530

2010 2011 2012 2013 2014

M€ %Continuing operations

Q3: Operating profit continued at healthy level

10/28/2015 18


Q3: Profit for the reporting period continued at the strong Q2 level

Profit for the reporting period, M€

Profit for the reporting period, M€

2.6

0.6

2.6 2.2

0.6

4.8

3.5

6.2 5.4

0

1

2

3

4

5

6

7

-12.0 -11.8

-2.8

5.7

10.2

-15

-10

-5

0

5

10

15

2010 2011 2012 2013 2014

Continuing operations Continuing operations

10/28/2015 19


Statement of profit or loss

EUR thousand 7-9/2015 7-9/2014 2014 Net sales 114,919 103,291 401,762 Cost of goods sold -98,892 -88,071 -352,091 Gross profit 16,027 15,220 49,671 Other operating income 782 659 2,655 Sales and marketing expenses -1,692 -1,427 -6,278 Research and development -1,015 -665 -2,877 Administration expenses -3,887 -3,777 -15,418 Other operating expenses -452 -1,648 -1,857

Operating profit 9,763 8,361 25,897 Net financial expenses -1,247 -4,334 -8,075 Profit before income taxes 8,517 4,027 17,822 Income taxes -3,142 -3,378 -7,645 Profit for the period from continuing operations 5,374 649 10,177

Healthy cost structure

Solid gross profit

Net financial expences of the comparison period include refinancing costs

10/28/2015 20


Statement of financial position, assets

EUR thousand 30 Sep 2015 30 Sep 2014 31 Dec 2014 Non-current assets Goodwill 15,496 15,496 15,496 Intangible assets 12,462 12,434 12,510 Property, plant and equipment 91,743 88,553 88,721 Loan receivables 7,752 8,531 8,202 Available-for-sale assets 777 942 1,124 Held-to-maturity investments − 449 450 Other non-current receivables 2,206 980 2,614 Deferred tax assets 4,715 5,004 5,516 Total non-current assets 135,150 132,389 134,633

Current assets Inventories 32,078 29,623 32,380 Trade receivables 60,360 50,639 52,269 Loan receivables 800 59 600 Other current receivables 5,036 5,971 4,618 Assets for current tax 1,807 697 1,682 Cash and cash equivalents 36,454 31,778 38,430 Total current assets 136,535 118,767 129,979

Total assets 271,685 251,156 264,611

10/28/2015 21


Statement of financial position, equity and liabilities

EUR thousand 30 Sep 2015 30 Sep 2014 31 Dec 2014 Share capital 11,860 11,860 11,860 Share premium account 24,681 24,681 24,681 Reserve for invested unrestricted equity 69,652 97,192 97,192 Treasury shares -44 -44 -44 Fair value and other reserves 42 -52 96 Exchange differences 1,644 2,650 3,419 Other equity -4,593 -51,386 -46,890 Total equity attributable to owners of the parent 103,242 84,901 90,313

Hybrid bond 17,118 18,162 18,424 Total equity 120,360 103,063 108,737 Liabilities Non-current liabilities Deferred tax liabilities 9,864 7,413 8,789 Liabilities from defined benefit plans 1,151 1,025 1,151 Other non-current liabilities 538 841 578 Debentures 75,000 75,000 75,000 Other non-current interest-bearing liabilities 3,333 6,667 6,667

Total non-current liabilities 89,887 90,946 92,185 Current liabilities Current interest-bearing liabilities 3,333 3,367 3,347 Liabilities for current tax 2,720 1,688 246 Trade payables and other current liabilities

55,385 52,092 60,096

Total current liabilities 61,438 57,147 63,689 Total liabilities 151,325 148,093 155,874 Total equity and liabilities 271,685 251,156 264,611

10/28/2015 22


Q3: Cash flow weakened from the comparison period

Cash flow from operations, M€ Cash flow from operations, M€

4.3

16.3

-0.4

11.3

16.9

9.3

4.5 3.9

7.9

-202468

1012141618

-2.5 -2.9

24.9 21.3

37.1

-505

10152025303540

2010 2011 2012 2013 2014

- In FY2015, cash flow accumulation between quarters has been steadier than before.

10/28/2015 23


Statement of cash flows (1/2)

EUR thousand 1-9/2015 1-9/2014 1-12/2014

Cash flow from operations Profit / loss for the period 15,101 212 4,973 Total adjustments to profit / loss for the period 25,238 34,406 39,953

Cash flow before changes in net working capital 40,339 34,618 44,927

Change in net working capital -12,019 3,985 6,140 Financial items -6,672 -5,982 -6,514 Income taxes -5,371 -4,839 -7,434 Cash flow from operations 16,277 27,783 37,119

Cash flow from investments Investments in property, plant and equipment and intangible assets -14,052 -5,291 -7,740

Investments in acquired businesses − -19,261 -19,261 Cash flow from disposed businesses 167 4,736 4,736 Sales proceeds from property, plant and equipment and intangible assets 10 31 59

Cash flow from investments -13,876 -19,785 -22,206

Change in working capital decreased cash flow from operations

Growth investment initiatives visible in cash flow from investments

Cash flow in 2014 includes also discontinued operations.

10/28/2015 24


Statement of cash flows (2/2) EUR thousand 1-9/2015 1-9/2014 1-12/2014 Cash flow from financing Drawdown of hybrid bond − 17,500 17,500 Drawdown of debenture bond − 75,000 75,000 Drawdown of other non-current interest-bearing liabilities − 10,000 10,000

Repayment of other non-current interest-bearing liabilities -3,333 -78,213 -78,220

Changes in current interest-bearing liabilities -14 -18,318 -18,324 Changes in loan receivables 250 − − Share issue 340 − − Distribution of funds -2,504 − − Cash flow from financing -5,261 5,969 5,956

Change in cash and cash equivalents -2,859 13,967 20,869

Cash and cash equivalents at the beginning of the period 38,430 18,585 18,585

Effect of changes in exchange rates 883 -775 -1,025 Change in cash and cash equivalents -2,859 13,967 20,869 Cash and cash equivalents at the end of the period 36,454 31,778 38,430

Cash flow in 2014 includes also discontinued operations.

10/28/2015 25


Outlook for FY2015

• Suominen specifies its guidance regarding operating profit for 2015. The company expects that for the full year 2015, operating profit from continuing operations excluding non-recurring items will improve markedly from year 2014 (EUR 26.9 million).

• Previously, Suominen estimated that for the full year 2015, its operating profit excluding non-recurring items from continuing operations would improve from year 2014.

• For net sales, Suominen repeats its previous estimate, disclosed on 17 July 2015, that for the full year 2015 the company expects its net sales for continuing operations to improve from year 2014 (EUR 401.8 million).

10/28/2015 26

Strategy 2015–2017

In this strategy period, we continue with these three cornerstones but focus on “In the Lead”

How we operate

In the Lead

Step Change in Profitability

Suominen Way

How we work How we win

Understanding the end user remains in the heart of our strategy

Fiber producer

Nonwovens manufacturer

Brand owner

Converter, e.g. wet wipe manufacturer

Retailer

Primary production


In 2015–2017, we target growth, market-driven way of operating, and product leadership

Organic growth exceeding industry average

Market-driven way of

operating

Product leadership


We aim at achieving a major shift in product portfolio

41%

15%

12%

22%

8% 2%

2014 (401.8 M€)

Baby Household

Industrial Personal care

Medical and hygiene Other

2017 (approx. 500 M€)

Illustrative.


To implement the strategy, we have a focused ~60 M€ growth investment program

Extend geo-graphical

reach Acquisitions Sustain &

improve Retrofit Expand

Projected growth investments appr. 60 M€ until 2017

Not in focus in the strategy period 2015–2017

Some 1-2% of net sales


The growth investment program was launched swiftly and is proceeding as planned


Bethune, SC, US

Paulínia, Brazil

Alicante, Spain

Nakkila, Finland


A new production line at Bethune plant

• The total value of the project will be close to EUR 50 million. • Andritz was selected as the main supplier and integrator of

the project. • The investment will take the wetlaid technology to a totally

new level in the industry. • At first, the new production line will supply nonwovens for

household and industrial wiping as well as for flushable applications.

• The new line will be tailor-made, based on our unique nonwovens technology expertise.

• The line is anticipated to be installed during the second half of 2016.

10/28/2015 34


Investment projects at Alicante ja Paulínia plants

• Both investments will expand the product offering of the plants

• At Alicante, the product offering will expand to nonwovens for industrial wipes and medical applications.

• After the investment is completed, Paulínia plant will supply nonwovens for medical applications in addition to wiping applications.

• The investment projects will be completed during 2015. • The total value of the investment projects is approximately

EUR 4 milllion.

10/28/2015 35


4.7 % 7.5 %

14.4 %

0%

5%

10%

15%

20%

2012 2013 2014 Q3/15

Net sales growth, %

101.0 96.2

34.7 30.5

020406080

100120

2012 2013 2014 Q3/15

Gearing, %

Progress on mid-term financial targets

12.4 % 15.7 %

17.4 %

0%

5%

10%

15%

20%

2012 2013 2014 Q3/15

ROI, %

- Net sales growth compared with previous year or the Q3 of previous year.

- Target level marked with dashed line. - Figures are of continuing operations.

n/a n/a

10/28/2015 36

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


• 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?

Financial targets


Summary: Suominen as an investment

Strong track record

Successful transformation, now full focus on nonwovens

Focused strategy for 2015 – 2017 & ambitious growth scenario

Financial position enables the execution

Dividend policy defined for the creation of shareholder value

100%

500 M€

60 M€

30%


Thank you!

Appendices


30%

23% 23%

21%

3% ViscosePulpPolypropene*PolyesterOther

*Including sourced PP Spunbond.

Raw material purchases in 2014


• Total raw material purchases were 138,000 tons in 2014.

Share information

Largest shareholders (30/9/15) Nr of shares % AC Invest Two B.V.* 67,724,176 26.83 Varma Mutual Pension Insurance Company 22,500,000 8.91 Ilmarinen Mutual Pension Insurance Company 17,622,103 6.98

Elo Pension Company 14,123,255 5.60

Euroclear Bank Sa/Nv 12,329,012 4.88

Oy Etra Invest Ab 12,223,320 4.84

Skandinaviska Enskilda Banken AB 7,798,148 3.09

Nordea Nordic Small Cap Fund 7,685,763 3.04

OP-Delta Fund 5,500,000 2.18

Nordea Bank Finland Plc 5,404,753 2.14


Basic share information • Trading code SUY1V • ISIN code FI0009010862 • List: NASDAQ Helsinki,

Consumer Goods (small cap) • Number of shares 252,425,616 • Share capital 11,860,056 EUR • Market cap 274.1 MEUR

(30 Sep 2015)

* A group company of Ahlström Capital, a private equity company

Company history

Orlandi 1933

Green Bay Nonwovens

1997

Tecnofibra/ Fiberweb

1971

C.H. Dexter & Sons 1767

J.W. Suominen

1898

Part of Suominen since 2001

Ahlstrom Brazil 2008

Part of Ahlstrom

since 2007

Part of Ahlstrom

since 2007

Part of Ahlstrom

since 2004

Part of Ahlstrom

since 2000

Part of Lassila

& Tikanoja since 1982


Suominen 2015


Nakkila Windsor Locks Mozzate, Alicante, Bethune Cressa Green Bay Paulínia


Sustainability agenda 2015–2017

Long-term relations

with customers & suppliers


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


Refinancing: issuance of a 75 MEUR bond in Sep 2014

• Senior unsecured bond with maturity of five years. • Fixed coupon with an interest rate of 4.375 per cent per annum. • Issue was oversubscribed by more than 40 investors. • Listed on NASDAQ OMX Helsinki. • Listing prospectus is available at www.suominen.fi > Investors >

Financials > Debt information.

Our purpose is to make nonwovens continuously better for people. 45 10/28/2015

Refinancing: renewed credit facilities

• In connection with issuing the bond, Suominen entered into a syndicated credit facilities agreement totaling EUR 55 million.

• The syndicated credit facilities consist of: • a multicurrency revolving credit facility of EUR 30 million with a

maturity four years • a term loan of EUR 10 million with a maturity of three years • a term loan of EUR 15 million with a maturity of four years.

• The lenders for the facilities are Nordea Bank Finland Plc and Pohjola Bank Plc.

• The bank facilities include leverage ratio and gearing as financial covenants.

Our purpose is to make nonwovens continuously better for people. 46 10/28/2015

suominen roadshow presentation, london, 28 oct 2015

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