suominen at avanza bank's börsdag on 18 may 2016

22
Suominen – aiming for profitable growth 18 May 2016 Nina Kopola, President & CEO

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Page 1: Suominen at Avanza Bank's Börsdag on 18 May 2016

Suominen – aiming for

profitable growth

18 May 2016

Nina Kopola, President & CEO

Page 2: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Suominenin brief

5/18/2016 2

444.0net salesin 2015

EUR

million

Nonwovens

as roll goods

for wiping,

hygiene and

medical

products

Global

market

leader in

nonwovens

for wipes

over

600employees

Page 3: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Potential customers

Our customers convert nonwovens into products for

consumers and professionals

3

Suominen End use applications

5/18/2016

Page 4: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Eight nonwovens plants in three continents serving both business areas

Two business areas

93% of Suominen’s net sales 7% of Suominen’s net sales

• 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 (2015)

32.4 M€

• Main end use areas:

- Wiping (baby, household,

personal care ,

industrial wipes

- Travel & catering applications

• Net sales of the business area (2015):

411.5 M€

Convenience Care

5/18/2016 4

Page 5: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Nonwovensmarkets

5/18/2016 5

Page 6: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

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

In Europe, GDP growth is for euro area.

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GDP Nonwoven demand

65/18/2016

Page 7: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Suominen has chosen three market segments

5/18/2016 7

Page 8: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

There’s demand for Suominen’s products in both

developing and developed markets

Household wipesUSD 14 000+

Incontinence productsUSD 10 000+

Baby wipesUSD 7 000+

Disposable diapersUSD 4 000+

Feminine care productsUSD 1 000+

GDP per capita

5/18/2016 8

Page 9: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Five reasons toinvest in Suominen

5/18/2016 9

Page 10: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Five reasons to invest in Suominen

105/18/2016

Locations on three continents, close to customers1

Suominen operates in growing markets2

Our customer relationships are often global and long-term3

A clear vision, an ambitious strategy and promising track record4

Ability to pay dividend restored5

Page 11: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

1. Locations on three continents, close to customers

5/18/2016 11

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

Page 12: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

2. Suominen operates in growing markets

5/18/2016 12

Page 13: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

3. Our customer relationships are often global

and long-term

5/18/2016 13

• Our customers include

- global consumer brands

- manufacturers of private labels

- regional nonwoven converters

- manufacturers of medical and hygiene products

• More than 25% of Suominen’s net sales comes from

Fortune 500 companies

• Our customer relationships are typically very long, on average

more than ten years

Page 14: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

4.We have a clear vision,an ambitious strategy and promisingtrack record

5/18/2016 14

Page 15: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Ambitious strategy for 2015-2017

5/18/2016 15

Page 16: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Understanding the end user needs is

at the heart of our strategy

5/18/2016 16

Page 17: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

We aim at substantial growth and major shift

towards products with higher value added

2017 (approx. EUR 500 million)

Illustrative.

175/18/2016

40%

17%

11%

22%

7%

2015 (EUR 444.0 million)

Baby wipes Household wipes

Workplace wipes Personal care wipes

Hygiene and medical products

Page 18: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

EUR ~60 million growth investment program –

a key action in executing Suominen’s strategy

• Helps in product portfolio

transformation

• Covers currently four plants

on three continents

• A new wetlaid production

line, worth of approx.

EUR 50 million, is being built

in Bethune, SC, USA

• In addition, smaller

investments in machinery

improvements in Europe

and South America

5/18/2016 18

Bethune, SC,

USA

Paulínia,

Brazil

Alicante,

Spain

Nakkila,

Finland

Page 19: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Promising track record

5/18/2016 19

Net sales, EUR million

55,7

98,3

356,9373,7,0

401,8

444,0

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014 2015

Continuing operations

-6,5% -4,4%

4,2%5,2%

6,7% 7,0%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

-10

-5

0

5

10

15

20

25

30

35

2010 2011 2012 2013 2014 2015

EUR million %

Continuing operations

Operating profit excl. NRI, EUR million and %

Page 20: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

5. Ability to pay dividend restored

20

• Dividend form an important

element in the creation of

shareholder value

• 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 Board

of Directors will also consider

Suominen’s future investment

needs and the solidity of its

financial position

-2,8

5,7

10,2

17,0

-5

0

5

10

15

20

2012 2013 2014 2015

-0,01

0,02

0,04

0,06

0,01

0,02

-0,02

0

0,02

0,04

0,06

0,08

2012 2013 2014 2015

EPS DPS

EPS and DPS, EUR

5/18/2016

Profit for the period, EUR million

Page 21: Suominen at Avanza Bank's Börsdag on 18 May 2016

Our purpose is to make nonwovens continuously better for people.

Summary: Five reasons to invest in Suominen

215/18/2016

Locations on three continents, close to customers1

Suominen operates in growing markets2

Our customer relationships are often global and long-term3

A clear vision, an ambitious strategy and promising track record4

Ability to pay dividend restored5

Page 22: Suominen at Avanza Bank's Börsdag on 18 May 2016

Thank you!

5/18/2016 22