Suominen Oyj · OMXHEX:SUY1V
Suominen Oyj — Q2 2024 Earnings Presentation
35 slides from Suominen Oyj's earnings presentation, August 2024
Slide 1: Investor Presentation Q2/2024
Slide 2: Content
CONTENT Suominen in brief Financials Strategy Sustainability ¢ R&D Market highlights Appendix We create innovative and sustainable nonwovens for our customers (@) BIOLACE® FIBRELLA® ©) HYDRASPUN® GENESIS® NOVONETTE™ & spc” > SUOMINEN WETLAID
Slide 3: Suominen in brief
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Slide 4: Suominen in brief
OO0000 ome me) -~OO0000000000 ce) fe) SUOMINEN IN BRIEF « Nonwovens as roll goods for wipes and other applications ¢ The frontrunner in nonwovens innovation and sustainability * Business areas: Europe 36% and Americas 64% of net sales Net sales in 2023, EUR million 450.9 In 2023, sales of sustainabl
Slide 5: Executive team
EXECUTIVE TEAM ‘) Tommi Bj6rnman Janne Silonsaari President & CEO CFO Jonni Friman Markku Koivisto EVP, Transformation EVP, EMEA & CTO Management Office Interim EVP, Americas & suominen
Slide 6: Suominen has a strong global presence
Suominen has a strong global presence USA 2954 Green Bay @ Windsor Locks a Bethune @ SPAIN 682 Alicante @ @ BRAZIL 604 Paulinia FINLAND 152 4 Nakkila Espoo, head office ITALY 98 & Cressa Our main market areas are Europe and North America. We also hold a strong position in the South American markets
Slide 7: Suominen's position in the nonwovens value chain
Suominen’s position in the nonwovens value chain Suominen is the global market leader in nonwovens for wipes, and among the largest spunlace nonwovens producers in the world. The global demand for nonwovens is growing continuously. The growth depends mainly on consumer demand, which is a combination
Slide 8: Investment highlights
INVESTMENT HIGHLIGHTS Nonwovens markets are growing in all regions _— Legislation and consumer behavior are driving the need for more sustainable products and we are very well placed to respond to this growing demand O laraN Our organization and strategy give us an excellent basis to continue to dev
Slide 9: Financials
Slide 10: Financials
FINANCIALS 600 500 400 300 200 100 Net sales, EUR million 4311 2018 411,4 2019 458,9 2020 443,2 2021 493,3 2022 450,9 | 232,3 2023 H1/2024 Comparable EBITDA, EUR million 60,9 Cash flow from operations, EUR million 57,0 321 999 30,7 14,1 14,0 -0,1 2018 2019 2020 2021 2022 2023 -H1/2024
Slide 11: Quarterly financials
Quarterly financials Comparable EBITDA, EUR million Net sales, EUR million 140 131,9 133.1 118 118,7 120 116,8 112,7 114,9 113.6 106,4 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 3/23 Q4/23 Q1/24 Q2/24 100 80 Cash flow from operations, EUR million 60 20 15,6 15 41,9 13,1 40 io 64 8.0 5 “ies 24 20 0 5 -2,2 ) -10 Q
Slide 12: President & CEO's review — Q2/2024
President & CEO's review — Q2/2024 During the second quarter of 2024, our net sales grew by 5% from the comparison period and were EUR 118.7 million (112.7). Sales volumes increased from comparison period, however, sales prices decreased driven by the lower raw material prices. Our ability to innova
Slide 13: Equity ratio stable
Equity ratio stable EUR million Leverage multiple & components 180 13.5 *L12M a 2,1x veo 140 149 120 417 100 109 101 80 60 58 59 40 20 a | 38 0 2018 2019 2020 2021 2022 2023 mmm |nterest-bearing liabilities Cash and cash equivalents ‘Comparable EBITDA e Leverage The leverage multiple has varied a lo
Slide 14: Outlook
[e) ie) (e) — TT a eee DET Es TTT ST = ww Suominen OUTLOOK AUGUST 9, 2024 Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2024 will increase from 2023. In 2023, Suominen’'s comparable EBITDA was EUR 15.8 million.
Slide 15: Financial targets 2020-2025
Financial targets 2020-2025 Net sales growth during the period: above relevant market growth Howto Growth get there? products * Innovation and launching new products to capture market share * Targeted investments to improve capabilities and increase capacity * Focus on fast-growing sustainable Geari
Slide 16: Strategy
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Slide 17: Mission, vision and strategy
Mission Vision Enabling our customers to win Frontrunner for nonwovens by creating quality nonwovens innovation and sustainability Strategy: Growth and profitability through sustainability, customer focus and efficiency We will grow by creating innovative and more sustainable nonwovens for our custo
Slide 18: Strategy highlights in 2023
Strategy highlights in 2023 Investment project to further strengthen our capabilities in sustainable nonwovens in l Nakkila, Finland lea Closure of Mozzate plant in Italy to improve the competitiveness of European business Sales of sustainable products increased by 79%* Share of new products exceede
Slide 19: Sustainability and R&D
Slide 20: Sustainability
SUSTAINABILITY Sustainability is at the core of our strategy and business. Our vision is to be the frontrunner in nonwovens innovation and sustainability. Sustainability is an integral part of all our operations. Sustainability Agenda 2020-2025 Suominen’s sustainability agenda crystallizes the susta
Slide 21: Our sustainability agenda 2020-2025 and KPIs
Our sustainability agenda 2020-2025 and KPI's * Zero LTA (lost time accidents) + Engagement index 73% by 2025 Reduction targets are set per ton of product + 20% reduction of energy consumption * 20% reduction of process waste to landfill * 20% reduction of water intake * 20% reduction of emitted gre
Slide 22: Progress in sustainability targets in 2023
Progress in sustainability targets in 2023 * 12 sustainable product launches + Sustainable products: 79% increase of sales from base year 2019 * 6 lost-time accidents (LTA) + Engagement index 66% Reduction targets are set per ton + Renewed Code of Conduct of product. Results in 2023: < 'Q coverage:
Slide 23: Sustainable Development Goals - Suominen
WIEST OOOOCNONONONOOO eee ee eee eee OOO OC OCOOOOO Sustainable Development Goals - Suominen The Sustainable Development Goals (SDG) adopted by the United Nations in 2015 define international sustainable development focus areas and goals. We have identified three SDG's which cover the areas where we
Slide 24: Sustainability ratings and initiatives
Sustainability ratings and initiatives stLveRy 2023 ecovadis ‘Sustains lit ae EcoVadis Suominen scored 68/100 points in the assessment in 2023 and received a Silver level rating (silver level: 59-69 points) The result places Suominen in the top 5% of companies in the manufacture of other textiles in
Slide 25: Sustainability defined by Suominen
Sustainability defined by Suominen WY o™ COMPOSTABLE Nonwovens are compostable according to the international compostability standards and are made of only fibers from renewable resources. RENEWABLE Nonwovens made of variety of renewable materials from biobased plastics to natural fibers MOIST TOILE
Slide 26: R&D
R&D Suominen'’s vision is to be the leader in nonwovens innovation and sustainability. Sustainability is also one of the key themes in our R&D. Suominen is a pioneer in producing sustainable nonwovens, and our versatile R&D team has excellent Know-how in sustainable fibers. Our pilot lines at Nakkil
Slide 27: Pioneer in sustainable products, strong R&D
oo00000000 -O0O0O0000000 “OO0O0O0000000 ~~ 2 Sa TO —~ a —~ &, Suominen Pioneer in sustainable Strong Technology fit to products R&D sustainable nonwovens 2 \ i Mee | oe | ek _— BIOLACE® sustainable product 15 R&D professionals Aarti taeteeraale . . if paiielto sine aoe Focus on sustainability and We
Slide 28: R&D highlights
R&D highlights Press Release ARTICLE ARTICLE May 2, 2024 March 7, 2024 February 23, 2024 Suominen invests in Suominen Sustainability & Frontrunner for nonwovens strengthening its capabilities in Innovative Fibers Seminar in innovation - Leveraging piloting sustainable products in Bethune, Windsor Lo
Slide 29: New Fiber Center
New Fiber Center Target is to collaborate and onboard novel sustainable fibers at Suominen * Pilot and testing facilities in Finland and US * Carding and wetlaid * Bonding: spunlaced, thermal bonding, composites * In future adding pulp capabilities for spunlace * Prototyping * Partnerships Examples
Slide 30: Market highlights
Slide 31: Nonwovens markets are growing in all regions
Nonwovens markets are growing in all regions We are the leaders both in the spunlace and wipes nonwovens markets The demand for wipes is expected to remain above pre-COVID-19 levels Legislation and consumer behavior are driving for more sustainable products and we have excellent opportunities to mee
Slide 32: Consumers believe they can make a difference
believe they can make a difference through their everyday choices and actions in 2022
Slide 33: Pure Nordic quality
Sa Suominen PURE NORDIC QUALITY
Slide 34: Appendix
DIX N — iu au eley
Slide 35: Suominen celebrates its 125-year anniversary in 2023
Suominen celebrates its 125-year anniversary in 2023 Suominen J.W. Suominen 1898 C.H. Dexter & Sons 1767 Alicante, Bethune Tecnofibra/ Fiberweb 1971 Green Bay Green Bay Nonwovens 1997 wv Paulinia Suominen