Suominen at Mid Small Cap Forum at Paris, France, 24 Nov 2016

Suominen Corporation as an investment24 Nov 2016European Mid Small Cap Forum, Paris

Nina Kopola, President & CEOAnu Heinonen, Vice President, Corporate Communications & IR

Our purpose is to make nonwovens continuously better for people.

Contents

• Suominen at a glance• Nonwovens markets• Strategy for 2015 – 2017 and its implementation

- Progress on mid-term financial targets• Key elements of profitability• Financial review

211/24/2016


Suominenat a glance

311/24/2016


Indicative customers

Our operations, customers and end users

4

Suominen End use applications

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Recent history: Determined progress towards growth

5

2012 – 2014Putting the house

in order

2015 – 2017:Heading to

organic growth

2018 Future Suominen

Cost cuttingRestructuringReorganizingRefinancing

Net sales 356.9 M€Gearing 101.0%

Growth strategyInvestment programFocus on products withhigher value addedStronger R&D

Net sales 444.0 M€Gearing 25.9%

Net sales at theend of 2017: ~500 M€

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Good track record

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Net sales, EUR million

55.798.3

356.9373.7,0

401.8444.0

316.5

0.050.0

100.0150.0200.0250.0300.0350.0400.0450.0500.0

2010 2011 2012 2013 2014 2015 2016YTDSept

Continuing operations

-6.5% -4.4%

4.2%5.2% 6.7% 7.0% 7.0%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2010 2011 2012 2013 2014 2015 2016YTDSeptEUR million %

Continuing operations*Excluding non-recurring items / Comparable operating profit

Operating profit*, EUR million and %


Eight nonwovens plants in three continents serving both business areas

Two business areas – Convenience and Care

7

93% of Suominen’s net sales (411.5 M€) 7% of Suominen’s net sales (32.4 M€)

• Main end use areas:- Hygiene products (femcare,

incontinence, diapers)- Medical products (e.g. swabs,

undercast pads, surgical drapes and masks)

• Main end use areas:- Wiping (baby, household,

personal care andworkplace wipes)

Convenience Care

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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

811/24/2016


Nonwovensmarkets

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Of our three chosen segments, we are the global leader in nonwovens for wiping

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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.For nonwovens demand, the graphs illustrate the change in the value (USD) of nonwoven demand.

-10%

-5%

0%

5%

10%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

GDP Nonwoven demand

1111/24/2016


Annual forecasted growth rates of demand for nonwovens used in wipes and in hygiene and medical products

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Aging populationEveryday convenienceHealth and well-being trends

Growing population and middle class


Aging populationEveryday convenienceHealth and well-being trends


12


GDP per capita

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

13

Household wipes

Incontinence products

Baby wipes

Disposable diapers

Feminine care products

USD 14 000+

USD 7 000+

USD 10 000+

USD 4 000+

USD 1 000+

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We hold the leading market position in Convenience,still a challenger Care

14

TOP10 #1 Challenger

in nonwovens for medical & hygiene products(Care business area)

Global market leaderin nonwovens for wipes(Conveniencebusiness area)

Ninth-largestof all nonwovens suppliers globally

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Strategy for 2015-2017

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Suominen’s strategy for 2015–2017

16

1. Deliver superior value in thoughtfully selected market applications.

2. Drive proactive key account management. 3. Execute demand driven supply chain. 4. Evolve culture and capabilities to build strong product

company.

1611/24/2016


In this strategy period, we aim at growth and clear shift in product portfolio

40%

17%

11%

22%

7%

2015 (Total net sales 444.0 M€)

Baby wipingHousehold wiping*Workplace wiping*Personal care wiping*Medical and hygiene products*

2017 (approx. 500 M€)

Illustrative.

171711/24/2016

* Typically products with higher added value.


Understanding the end user needs isat the heart of our strategy

1811/24/2016


Strategy implementation

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Suominen’s strategy 2015–2017

20

Market Driven Product LeaderVision

Strategy – how?

1. Deliver superior value in thoughtfully selected market applications.

2. Drive proactive key account management. 3. Execute demand driven supply chain. 4. Evolve culture and capabilities to build strong product

company.

Our purpose is to make nonwovens continuously better for peoplePurpose

2011/24/2016


Deliver superior value in selected market applications

Key activities in delivering superior value

21

+60 M€ growth investment program, initiatives on three continents

Product development process enhanced

New products launched

1

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The largest-ever investment program for growth

22

Bethune, SC, USA

Paulínia, Brazil

Alicante, Spain

Nakkila, Finland

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• Initiatives to enhancecapabilities in threecontinents.

• All projects target to increase in the share of higher added valueproducts in our portfolio.

• The total value of theprogram is over EUR 60 million.


Investments in growing markets with attractiveprospects

Location Value Segments Market growth*

Competitivesituation

Bethune, SC, US >50 M€ Flushables +9 %(NA) TighteningHouseholdwiping +7 %(NA) BalancedWorkplacewiping +5-7% Balanced

Paulínia, BR

4 M€

Medical +3-5 % Emergingmarket

Alicante, SP Workplacewiping +5-7%

Balanced

Nakkila, FI Severalsegments

+2 % Mixed

11/24/2016 23

*Estimates based on third party forecasts and management analysis, reflecting averages.


Product Development function enhanced determinedly

24

Enhancing capabilities

• Innovation process,“Suominen Innovation Machine”- Front End Innovation- Creating a prioritized

project portfolio - Introduction of formal

gate process for running projects.

Enhancing capacity

• Creating critical mass- R&D expenditure to

increase to above 1% of net sales (0.8% in 2015)

- Several new resources hired during the last 12 months. Team has now six PhDs.

- Centralizing of the resources.

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suominen@work product line

• Nonwovens for wipes used in fast food restaurants, hospitals and industrial environments.

• Our investments in Alicante and Bethune improve our capability to serve this growing (even 7% p.a.) market.

• Strengthening this product segment supports our strategy that aims at increasing the share of products with higher added value in the net sales.

11/24/2016 25

Nonwovens for the demanding workplace.


Drive proactive key account management for mutual value creation

Key activities by focus area

26

Creating value together with customer by, for example, organizing events

Listening to the customer: Utilizing the Customer Perception Survey results

2

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Execute demand driven supply chain


27

Defining and implementing standardized global processes

3

Comprehensive ICT systems renewal –aim at an efficient, global supply chain

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Deployment of global processes supported with the coming organizational change

• Global Operations function to be formed, with Mimoun Saïm in charge.- Previous divide in EMEA / Americas will cease to exist.

• New, global Operational Excellence function to be established, with Larry L. Kinn in charge.

• The change allows production plants to focus even stronger on Manufacturing and Supply on global basis.

• Operational Excellence concentrates on enhancing our Process Technology and Health, Safety, Environment and Quality.

• The change will be effective as of 1 April 2017.

11/24/2016 28

Mimoun Saïm

Larry L. Kinn


Evolve culture and capabilities to build strong product company


29

4

Pivotal recruitments building new and enhanced capabilities in several areas

Strategic sustainability initiatives in progress, e.g., blind recruiting

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SupplierCode of Conduct

implemented

Sustainable product portfolio: Suominen

joins the sustainability

network of a global consumer goods

company

Non-Discrimination

Program:Blind hiring as a

default recruitment process

Reachingproduct leadership

Fostering responsibilitythrough the value chain

Operating sustainablyacross the company

3011/24/2016

Focused sustainability agenda implemented4


Key environmental indicators

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47%

17%

19%

10%6%

Baby wiping Personal care wiping Household wiping Workplace wiping Medical & hygiene products

Q1–Q3 2012: 273.0 M€

40%

22%

17%

12%

8%

Q1–Q3 2014: 297.0 M€

Portfolio transformation in progress – the share of products with higher added value is growing

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37%

26%

18%

10%

7%

Q1–Q3 2016: 316.5 M€

Typically products with higher added value


5.0 %

12.4 %

15.7 % 15.9 %14.7 %

0%

5%

10%

15%

20%

2012 2013 2014 2015 Q1/2016

ROI, %

6.9 %

3.5 %

0.8 %

0%

2%

4%

6%

8%

10%

12%

2013 2014 2015

Organic net sales growth, %

101 % 96.2 %

34.7 %25.9 %

28.6 %

0%

20%

40%

60%

80%

100%

120%

2012 2013 2014 2015 Q1/2016

Gearing, %

Progress on mid-term financial targets

• Net sales growth compared to previous year.

• Target level marked with dashed line.

• Figures are of continuing operations.

3311/24/2016


Key elements of profitability

3411/24/2016


Portfolio change drives top line growth

37%

18%10%

26%

7%

Q1-Q3 2016 (316.5 M€) 2017 (~500 M€)

Illustrative.

• 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

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9.0%10.7%

12.4% 13.1%14.0%

0%

3%

6%

9%

12%

15%

2012 2013 2014 2015 Q3 2016

Gross profit, % of net sales

Positive development in gross profit, SGA costsand operating profit

6.7 %6.0 % 5.8 % 6.3 % 6.5 %

0%

2%

4%

6%

8%

2012 2013 2014 2015 Q3 2016

SGA, % of net sales

*Excluding non-recurring items or comparable.

4.2%5.2%

6.7% 7.0%7.6%

0%

2%

4%

6%

8%

2012 2013 2014 2015 Q3 2016

Operating profit*, % of net sales

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Raw materials – The logic

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

• As one of the largest nonwovens producers in the world, we maintain 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.

26%

20%

23%

26%

6%

Viscose Pulp Polypropene* Polyester Other

Raw material consumption in 2015

* Including sourced PP Spunbond.

11/24/2016 37


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.

11/24/2016 38


FinancialreviewQ3 2016

11/24/2016 39


Net sales fell short of the comparison period

Net sales, EUR million Net sales, EUR million

103.3104.8111.9112.9114.9

104.2103.9108.8

103.8

0

20

40

60

80

100

120

356.9 373.7401.8

444,0

0

100

200

300

400

500

2012 2013 2014 2015

• Customer deliveries fell short of our expectations in Q3.• Net sales decreased from comparison period to EUR 103.8 million.• Net sales was primarily impacted by the decline in sales volumes from the comparison period.

Continuing operations Continuing operations

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8.7

6.27.3

9.9 9.8

4.35.5

8.77.9

8.4 %

5.9 %6.5 %

8.8 %8.5 %

4.1 %5.3 %

8.0 %7.6 %

0%

2%

4%

6%

8%

10%

0

2

4

6

8

10

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

EUR million %

Positive development in product portfolio, operating profit at 7.6%

Comparable operating profit Comparable operating profit

• The decline in net sales was reflected in the operating profit, which was EUR 7.9 million.• A bad debt provision of approx. EUR 0.3 million relating to customers having operations in

Venezuela was recognized during Q3.


14.919.4

26.9

31.2

4.2 %

5.2 %

6.7 %

7.0 %

0%1%2%3%4%5%6%7%8%

0

5

10

15

20

25

30

35

2012 2013 2014 2015EUR million %


11/24/2016 41


Profit for the period declined from the comparison period

Profit for the period, EUR million Profit for the period, EUR million

0.6

4.8

3.5

6.25.4

1.9

3.4

5.2 4.9

0

1

2

3

4

5

6

7

-2.8

5.7

10.2

17.0

-5

0

5

10

15

20

Continuing operations Continuing operations

11/24/2016 42

2012 2013 2014 2015

• Decrease in financial expenses and income taxes improved the profit for the period.


Consolidated statement of profit or loss

11/24/2016 43

EUR thousands 7-9/20167-9/

20151-9/

20161-9/

20151-12/2015

Net sales 103,796 114,919 316,497 339,798 444,042Cost of goods sold -89,316 -98,892 -275,223 -293,069 -386,042Gross profit 14,480 16,027 41,274 46,728 58,000Other operating income 485 782 1,584 2,634 2,637Sales and marketing expenses -1,625 -1,692 -5,202 -5,350 -7,760Research and development -1,136 -1,015 -2,968 -2,603 -3,527Administration expenses -3,983 -3,887 -12,253 -12,746 -16,709Other operating expenses -342 -452 -354 -1,146 -862Operating profit 7,878 9,763 22,082 27,517 31,778Net financial expenses -830 -1,247 -2,041 -3,944 -5,302Profit before income taxes 7,048 8,517 20,041 23,573 26,476Income taxes -2,108 -3,142 -6,441 -8,472 -9,456

Profit for the period 4,941 5,374 13,601 15,101 17,020

Earnings per share, EURBasic 0.09 0.10 0.26 0.29 0.32Diluted 0.08 0.09 0.23 0.26 0.29

Q3 gross profit on a healthy level (14%)

Fixed costs to net sales ratio remained onthe level of 2015

Effective tax ratehas stabilized


Consolidated statement of financial position, assets

EUR thousands 30.9.2016 30.9.2015 31.12.2015

Non-current assetsGoodwill 15,496 15,496 15,496Intangible assets 13,912 12,462 13,275Property, plant and equipment 109,785 91,743 97,931Loan receivables 7,093 7,752 7,793Available-for-sale assets 777 777 777Other non-current receivables 2,298 2,206 2,402Deferred tax assets 4,909 4,715 4,491Total non-current assets 154,270 135,150 142,165

Current assetsInventories 34,316 32,078 32,557Trade receivables 53,200 60,360 51,547Loan receivables 1,250 800 1,000Other current receivables 6,830 5,036 7,038Assets for current tax 2,495 1,807 1,874Cash and cash equivalents 47,214 36,454 55,570Total current assets 145,306 136,535 149,585

Total assets 299,575 271,685 291,750

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Growth investmentprogram visible


Consolidated statement of financial position, equity and liabilities

11/24/2016 45

Equity and liabilities 30.9.2016 30.9.2015 31.12.2015Share capital 11,860 11,860 11,860Share premium account 24,681 24,681 24,681Reserve for invested unrestricted equity 69,732 69,652 69,652Treasury shares -44 -44 -44Fair value and other reserves 297 42 -118Exchange differences 5,759 1,644 5,097Other equity 5,164 -4,593 -3,076Total equity attributable to owners of the parent 117,449 103,242 108,052Hybrid bond 17,737 17,118 17,664Total equity 135,186 120,360 125,716LiabilitiesNon-current liabilitiesDeferred tax liabilities 10,697 9,864 10,890Liabilities from defined benefit plans 1,061 1,151 1,105Other non-current liabilities 387 538 651Debentures 75,000 75,000 75,000Other non-current interest-bearing liabilities 12,857 3,333 18,498Total non-current liabilities 100,003 89,887 106,144Current liabilitiesCurrent interest-bearing liabilities 5,605 3,333 3,363Liabilities for current tax 3,066 2,720 47Trade payables and other current liabilities 55,716 55,385 56,479Total current liabilities 64,386 61,438 59,889Total liabilities 164,389 151,325 166,034Total equity and liabilities 299,575 271,685 291,750

Equity ratio45.1%


Cash flow from operations improved from the comparison period

Cash flow from operations, EUR million Cash flow from operations, EUR million16.9

9.3

4.5 3.9

7.9

11.09.1

7.6 8.3

02468

1012141618

24.921.3

37.1

27.3

05

10152025303540

2012 2013 2014 2015

- Cash flow from the operations has been very stable and on a healthy level for all three quarters of 2016; already near the level of full-year 2015.

11/24/2016 46


Statement of cash flows (1/2)

11/24/2016 47

EUR thousands 1-9/2016 1-9/2015 1-12/2015

Cash flow from operationsProfit / loss for the period 13,601 15,101 17,020

Total adjustments to profit / loss for the period 22,957 25,238 32,870

Cash flow before changes in net working capital 36,558 40,339 49,890

Change in net working capital -3,857 -12,019 -7,921Financial items -3,907 -6,672 -6,425Income taxes -3,837 -5,371 -8,269Cash flow from operations 24,957 16,277 27,274

Cash flow from investmentsInvestments in property, plant and equipment and intangible assets -24,293 -14,052 -22,369

Cash flow from disposed businesses 313 167 167Adjustments of purchase consideration 161 − −Sales proceeds from property, plant and equipment and intangible assets 6 10 10

Cash flow from investments -23,814 -13,876 -22,192

We succeeded inmanaging networking capital


Statement of cash flows (2/2)

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Cash flow from financing 1-9/2016 1-9/2015 1-12/2015

Drawdown of other non-current interest-bearing liabilities − − 15,000

Repayment of other non-current interest-bearing liabilities -3,280 -3,333 -3,333

Changes in current interest-bearing liabilities -52 -14 -14Changes in loan receivables 450 250 600Share issue − 340 340Paid interest on hybrid bond -624 − −Dividend distribution / distribution of funds -5,030 -2,504 -2,504Cash flow from financing -8,536 -5,261 10,089

Change in cash and cash equivalents -7,392 -2,859 15,171

Cash and cash equivalents at the beginning of the period 55,570 38,430 38,430

Effect of changes in exchange rates -963 883 1,968Change in cash and cash equivalents -7,392 -2,859 15,171Cash and cash equivalents at the end of the period 47,214 36,454 55,570

Investmentpayments depressedcash and cash equivalents


Outlook for full year 2016 updated on 20 September

• On 20 September 2016, Suominen revised its outlook and announced that it expects that for the full year 2016, its net sales and comparable operating profit will not reach the level of year 2015.

• In 2015, Suominen’s net sales amounted to EUR 444.0 million and comparable operating profit to EUR 31.2 million.

11/24/2016 49


Summary: Suominen as an investment

Promising track record, solid financial position

Growing markets in all applications and regions

Growth investment program: Financial position secures the strategy execution

Dividends form an important elementin the creation of shareholder value

46

~30%Payout ratio

>60M€

28.6%Gearing

11/24/2016

Thank you!

5111/24/2016


Appendix

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TOP10 shareholders 31 Oct 2016

11/24/2016

Shareholder No. of shares Holding % Change Change %

AC Invest Two B.V. 13544835 26.45 0 0

Oy Etra Invest Ab 5055120 9.87 0 0Varma Mutual Pension Insurance Company 4500000 8.79 0 0

Ilmarinen Mutual Pension Insurance Company 3251811 6.35 0 0

Elo Pension Company 3024651 5.91 0 0

Nordea Bank Finland Plc 1579801 3.08 -102288 -6.08Nordea Nordic Small Cap Fund 1537152 3 0 0OP-Delta Fund 1210283 2.36 0 0Evald and Hilda Nissi´s Foundation 1000000 1.95 0 0

Bergholm Heikki 915168 1.79 0 0

AC Invest Two is a group company of Ahlström Capital.Change refers to change in shareholding from the previous month.

53


Reverse share split

• On March 21, Suominen carried out a reverse share split with a 5:1 ratio.

• The target for the reverse split was to make the share more attractive to investors, to enhance share trading conditions and to add flexibility in defining the amount of dividend.

• The arrangement was subject to the resolution of the Annual General Meeting.

• Before the reverse share split, Suominen Corporation had in total 252,425,616 shares. After the reverse share split, the total number of shares in Suominen Corporation is 51,216,232.

11/24/2016 54


Hybrid bond

• In Feb 2014, Suominen issued a convertible hybrid bond of MEUR 17.5 to finance the acquisition of Paulínia plant in Brazil.

• The holders of the bond notes are entitled to convert the notes and the potential accrued capitalized interest related to the notes into Suominen shares. The conversion period started on 11 February 2014 and will end on 10 February 2018.

• The conversion rate is EUR 2.50. • The number of shares in Suominen may increase in total by

maximum of 7,600,320 shares on the basis of the conversion of the remaining bond notes and the potential capitalized interest, if the conversion is carried out by issuing new shares in Suominen.

11/24/2016 55


Restored ability to pay dividends

56

• 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 company’s 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

Profit for the period, M€

-0.01

0.02

0.04

0.06

0.010.02

-0.02

0

0.02

0.04

0.06

0.08

2012 2013 2014 2015

EPS DPS

EPS and DPS*, €

11/24/2016

*In 2014, distribution of funds.

Investor Relations

Suominen at Mid Small Cap Forum at Paris, France, 24 Nov 2016