Strategy execution – Financial view

Capital Markets Day, 11 November 2015 Tapio Engström, CFO

Our purpose is to make nonwovens continuously better for people.

Mid-term financial targets

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Our purpose is to make nonwovens continuously better for people.

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

0

20

40

60

80

100

120

2012 2013 2014 Q3/15

Gearing, %

Solid financial development 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

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n/a

Our purpose is to make nonwovens continuously better for people.

Profitability transformation

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Our purpose is to make nonwovens continuously better for people.

Portfolio change drives top line growth

41%

17%

11%

21%

8% 2%

2014 (401.8 M€) 2017 (~500 M€)

Illustrative.

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• Portfolio change is increasing the share of higher value added products in our portfolio

• Envisioned healthy volume growth supports the profitability development

47%

19%

10%

18%

6%

2012 (357.9 M€)

Baby wipes Household wipes Workplace wipes Personal care wipes Hygiene and medical products Others

5

Our purpose is to make nonwovens continuously better for people.

9.0% 10.7%

12.4% 13.8%

0%

3%

6%

9%

12%

15%

2012 2013 2014 Q3/15

Gross profit, % of net sales

Positive development in gross profit, SGA costs and operating profit

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6.6% 6.0% 5.8% 6.1%

0%

2%

4%

6%

8%

2012 2013 2014 Q3/15

SGA, % of net sales

*Excluding non-recurring items

4.2% 5.2%

6.7% 8.1%

0%

2%

4%

6%

8%

10%

2012 2013 2014 Q3/15

Operating profit*, % of net sales

Our purpose is to make nonwovens continuously better for people.

Raw materials – The logic

• Roughly 60–70% of costs are raw materials.

• We are the 9th largest nonwovens producer in the world with long relationships with key suppliers.

• Contracts covering ca. 50% of our net sales include a pass-through clause.

• Between raw materials for fibers and the final fiber, there are intermediate steps and in that value chain market dynamics are in play.

• Raw materials are not hedged as correlations are not predictable.

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30%

23% 23%

21%

3%

Viscose Pulp Polypropene* Polyester Other* Including sourced PP Spunbond.

Our purpose is to make nonwovens continuously better for people.

EUR/USD – A factor to pay attention to

• We have estimated that 10% change in EUR/USD exchange

rate should have, based on the current business structure, on a full year basis, approximately 2.5 MEUR effect on operating profit.

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Our purpose is to make nonwovens continuously better for people.

Cash flow – always in focus

Cash flow from operations, M€

24.9 21.3

37.1

16.3

0

5

10

15

20

25

30

35

40

2012 2013 2014 Q1–Q3/15

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- In 2015, cash flow accumulation between quarters has been steadier than before.

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

Our purpose is to make nonwovens continuously better for people.

Growth investment program 11/11/2015 10

Our purpose is to make nonwovens continuously better for people.

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 approx. 60 M€ until 2017

Not in focus in the strategy period 2015–2017

Some 1-2% of net sales

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Our purpose is to make nonwovens continuously better for people.

~60 M€ growth investment program – Timing

12

2015 2016 2017

Retrofit

Paulínia, Alicante Q4/2015

Expand

Bethune H2/2016

Projected growth investments approx. 60 M€ until 2017

To be decided

~54 M€ spending in progress ~6 M€

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Our purpose is to make nonwovens continuously better for people.

Funding of the growth investment program secured Extrapolated from Q3/2015

Source of funding EUR million

Cash (Q3/2015) 36

Cash flow from operations

In 2015, 20+M€ (annualized Q3/2015)

Assume Cash Flow level repeated in 2016 ~20+

Term loan availability 15

Funding in total ~70

Growth investments program in total ~60

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Our purpose is to make nonwovens continuously better for people.

Dividend policy

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Our purpose is to make nonwovens continuously better for people.

Dividend policy

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• Suominen’s policy is to distribute approximately 30% of its profit for the period as annual dividend.

• However, as the Board of Directors of the company assesses the dividend payout proposal, it will also consider Suominen’s future investment needs and the solidity of the company’s financial position.

• Of the FY 2014, Suominen distributed funds 0.01 € per share, in total some EUR 2.5 million.

-2.8

5.7

10.2

15.1

-5

0

5

10

15

20

2012 2013 2014 Q1-Q3/15

Profit for the period, M€

-0.01

0.02

0.04

0.06

0.01

-0.02

0

0.02

0.04

0.06

0.08

2012 2013 2014 Q1-Q32015

EPS DPS

EPS and DPS, €

Our purpose is to make nonwovens continuously better for people.

Summary: Strategy execution from financial perspective

Strong track record, solid financial position

Ambitious growth scenario

Growth investment plan: Financial position secures the execution

Dividends form an important element in the creation of shareholder value

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~30 %

~60 M€

500 M€

Thank you!

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