Suominen Oyj · OMXHEX:SUY1V
Suominen Oyj — Q3 2023 Earnings Presentation
37 slides from Suominen Oyj's earnings presentation, November 2023
Slide 1: Investor Presentation Q3/2023
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 42% and Americas 58% of net sales Net sales in 2022, EUR million 493.3 In 2022, sales of sustainabl
Slide 5: Executive team
EXECUTIVE TEAM & 6 Tommi Bjérnman Janne Silonsaari Jonni Friman Markku Koivisto President & CEO CFO SVP, Transformation SVP, Europe & R&D Management Office \ é é Klaus Korhonen Thomas Olsen Mimoun Saim SVP, HR & Legal SVP, Americas SVP, Operations & suominen
Slide 6: Suominen has a strong global presence
Suominen has a strong global presence USA 2882 Green Bay Windsor Locks Bethune @ FINLAND 1474 Nakkila @ Helsinki, Head office SPAIN 672 @ ITALY 982 Alicante @ Cressa Our main market @ BRAZIL563& areas are Europe and Paulini North America. We aulinia also hold a strong position in the South American
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 Comparable EBITDA, EUR million 60.9 Net sales, EUR million 600 500 458.9 443.2 4311 441.4 400 300 - 7" Cash flow from operations, EUR million 200 60 57.0 50 \ 100 ' 40 321 99 0 30 ! 17.6 2 2 Pr * Eo SS SF ® # 0 H -10 -1.6 “J 2) o > iV 42 > Ss” ” aS ey BS se se oe oe ¥ ¥
Slide 11: Quarterly financials
Quarterly financials Comparable EBITDA, EUR million 140 120 100 80 60 40 20 Net sales, EUR million 131.9 133.1 118 116.8 115.6 1103 1127 106.4 1 2 Q4/22 Qt/2 Cash flow from operations, EUR million 20 15.6 15 11.9 10 64 80 5 2.9 3.3 0 “5 -2.7 -10 35 Q3/21 _Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3
Slide 12: President & CEO's review — Q3/2023
President & CEO's review — Q3/2023 The third quarter showed signs of improved profitability. Our quarterly comparable EBITDA improved slightly to EUR 5.2 million (5.1) being at the highest level since the fourth quarter of 2021. EBITDA improvement is mainly due to the increased sales margins Our net
Slide 13: Equity ratio stable
Equity ratio stable EUR million Leverage multiple & components Sy “uM 180 60 140 120 417 100 109 101 80 60 58 40 ° “ f ° 0 2018 2019 2020 2021 2022 = Q1-Q3/2023 mmm |nterest-bearing liabilities Cash and cash equivalents ‘Comparable EBITDA e Leverage The leverage multiple has varied a lot driven main
Slide 14: Outlook
[e) ie) (e) — TT a eee DET Es TTT ST = ww Suominen OUTLOOK OCTOBER 27, 2023 Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2023 will increase from 2022. In 2022, Suominen’s comparable EBITDA was EUR 15.3 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: Strategy: progress in Q3/2023
STRATEGY Progress in strategy implementation in Q3/2023 Improving our financial performance * Our commercial and operational excellence improvements are proceeding according to plan and have gradually started to contribute to the result * Production at Mozzate ended in April 2023 * Going forward, we
Slide 18: 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 19: Highlights in 2022
Highlights in 2022 * Investment project to enhance ° and upgrade a line in Nakkila, Finland * Compostability test center opened - in Nakkila, Finland to support our R&D work ecovadis Sustainability Rating Lost time accidents (LTA) * Share of new products exceeded decreased significantly from the 30%
Slide 20: Highlights in 2022
Highlights in 2022 * Sales of sustainable products increased by 99%* * 12 sustainable product launches * First carbon neutral product BIOLACE Zero * Greenhouse gas emissions decreased 20,0 %** * Solar panels were installed to Alicante plant * Compared to base year of 2019 ** per ton of product compa
Slide 21: Sustainability and R&D
Slide 22: 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 23: 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 24: Progress in sustainability targets in 2022
Progress in sustainability targets in 2022 * 2 lost-time accidents (LTA) + Engagement index 65% Reduction targets are set per ton of product. Results in 2022: + 0.6% reduction in energy consumption * 2.5% reduction in process waste to landfill * 6.1% reduction in water consumption + 20.0% reduction
Slide 25: 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 26: Sustainability ratings and initiatives
Sustainability ratings and initiatives 2 2023 ecovadis Sustainability Rating 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 ind
Slide 27: 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 28: 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 29: 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 30: R&D highlights
R&D highlights x f ) ad » a b. & ARTICLE September 27, 2023 Suominen’s HYDRASPUN® product family —- Leading expertise in moist toilet tissues READ MORE > ARTICLE April 18, 2023 HYDRASPUN® Circula wins EDANA’'s INDEX™23 Award at INDEX™23 exhibition READ MORE > ARTICLE February 22, 2023 Introducing Su
Slide 31: New Fiber Center
New Fiber Center Target is to collaborate and | Pamples offibers in the pipeline: onboard novel sustainable + Bast fibers fibers at Suominen —— + Regenerated * Pilot and testing facilities in cellulose fiber Finland and US * Native cellulose * Carding and wetlaid mangmadeitibey * Bonding: spunlaced,
Slide 32: Market highlights
Slide 33: 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 34: believe they can make a difference through their everyday choices and actions in 2022
believe they can make a difference through their everyday choices and actions in 2022
Slide 35: Pure Nordic Quality
Sa Suominen PURE NORDIC QUALITY
Slide 36: Appendix
DIX N — iu au eley
Slide 37: 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