Capital Markets Day 2015, Nina Kopola, President & CEO on Nov 11

The first leg of our path to become a Market Driven Product Leader Capital Markets Day, 11 November 2015 Nina Kopola, President & CEO

Our purpose is to make nonwovens continuously better for people.

Suominen in brief

11/11/2015 2

401.8 net sales in 2014

M€ Nonwovens as roll goods for wiping,

hygiene and medical products

Successful turnaround achieved,

solid financial position

Ambitious growth

strategy to be executed

Operations on three

continents, close to

customers

Some

600 employees


Our business

11/11/2015 3

Global consumer brands Private label suppliers Healthcare product suppliers Regional converters Retailers

Customers

Eight plants on three continents serve both business areas and create competitive edge

Production

Viscose, pulp, polypropene, polyester All purchased from the market Approximately 50% pulp-based

Raw materials

Convenience Wipes for baby & personal care, household and workplace use; travel & catering

Care Medical products, like swabs; hygiene products, like femcare & adult incontinence

End use applications


Fast transformation into a nonwovens company with operations on three continents

11/11/2015

Net sales by line of business and geographical coverage from 2011 to date.

2011

Three lines of business: Nonwovens Flexibles Codi Wipes

11/1/2011 Ahlstrom Home and Personal acquisition

7/15/2013 Divestment of Codi Wipes

2/10/2014 Acquisition of Brazilian unit

7/14/2014 Divestment of Flexibles business area

4


Leading market position in Convenience, opportunities for growth in Care

11/11/2015 5

#9 #1 Challenger

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

in nonwovens for wipes (Convenience business area)

of all nonwovens suppliers globally


In medical and hygiene, Suominen’s target market is over 2 billion euros

Global nonwovens market totaling ~26 billion euros

Upholstery 10%

Other 27%

Building/roofing 7%

Filtration 9%

Floor coverings 6%

Automotive 5%

Wiping 8%

Medical 3%

Hygiene 25%

11/11/2015 6


Core of Suominen’s strategy 2015–2017

7

Market Driven Product Leader Vision

Business strategy

11/11/2015

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 people Purpose

7


Sustainability agenda 2015–2017

Long-term relations

with customers & suppliers

Supplier Code of

Conduct

Suominen’s purpose

Innovation

Development of

sustainable products

Competence development

Non-discrimination

Material & resource

efficiency

Achieving product leadership

Fostering responsibility throughout the value chain

Operating sustainably throughout the organization

11/11/2015 8


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

41%

15%

12%

22%

8% 2%

2014 (401.8 M€)

Baby wipingHousehold wipingWorkplace wipingPersonal care wipingMedical and hygiene products

2017 (approx. 500 M€)

Illustrative.

11/11/2015 9 9


First leg – 2015

11/11/2015 10


0.9

1.2

1.5 1.61

0

0.5

1

1.5

2

Q3/2014 Q1/2015 Q2/2015 Q3/2015

GDP in Euro area Q4/14–Q3/15

Forecast 2.5

2.9 2.7

2

00.5

11.5

22.5

33.5

Q3/2014 Q1/2015 Q2/2015 Q3/2015

GDP in US Q4/14–Q3/15

Positive trend in market indicators

11/11/2015 11

-11.3

-6.3 -5.3

-7.1

-12

-10

-8

-6

-4

-2

0

Q4/2014 Q1/2015 Q2/2015 Q3/2015

Consumer Confidence Indicator in Euro area Q4/14–Q3/15

89.8

101.4 101.4 103

88

93

98

103

Q4/2014 Q1/2015 Q2/2015 Q3/2015

Consumer Confidence Indicator in US Q4/14–Q1/15

% %


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

11/11/2015 12

40%

24%

17%

12%

7%

Q1–Q3 2015: 339.8 M€


4.7 % 7.5 %

14.4 %

0%

5%

10%

15%

20%

2012 2013 2014 Q3/15

Net sales growth, %

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

10/26/2015 13

n/a

101.0 96.2

34.7 30.5

0

20

40

60

80

100

120

2012 2013 2014 Q3/15

Gearing, %


Turnaround recognized also by the market

- In Q1–Q3, 35.3% of the average number of shares were traded in Nasdaq Helsinki. - Market capitalization at the end of Q3 was EUR 274.1 million.

11/11/2015 14

2,300

2,800

3,300

3,800

4,300

4,800

0

50

100

150

200

250

300

350

Number of shareholders Market value, MEUR

Market value, M€ (incl. shares held by Suominen) Number of shareholders


Strategy implementation

11/11/2015 15


Suominen’s strategy 2015–2017

16

Market Driven Product Leader Vision

Business strategy

11/11/2015

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 people Purpose

16


Deliver superior value in selected market applications

Key activities by focus area

11/11/2015 17

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

Product development process enhanced

Six new products launched

1


State-of-the-art production line at Bethune plant

11/11/2015 18

Bethune, SC, US

• The total value of the project will be close to EUR 50 million.

• Andritz was selected as the main supplier and integrator of the project.

• The investment will take the wetlaid technology to a totally new level in the industry.

• At first, the new production line will supply nonwovens for household and workplace wiping as well as for flushable applications.

• The new line will be tailor-made, based on our unique nonwovens technology expertise.

• The line is anticipated to be installed during the second half of 2016.

1


• At Alicante and Paulínia, investments expand the current product offering: - To nonwovens for workplace wipes and

medical applications at Alicante - To nonwovens for medical applications at

Paulínia. • At Alicante and Paulínia, the investments will be

completed during 2015. • At Nakkila, a production line was re-opened in

Q2/2015 to meet the improved demand in Europe.

• The total value of the three investments is approximately EUR 4 million.

11/11/2015 19

Adding capabilities at Alicante, Paulínia and Nakkila plants

Nakkila, Finland

Alicante, Spain

Paulínia, Brazil

1

Our purpose is to make nonwovens continuously better for people. 11/11/2015 20

Creating world class product development 1

Enhancing capabilities

• Building the 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 (0.7% in 2014)

- Four new people employed in 2015, two of them PhDs

- Centralizing resources


Six new products launched Five for Care, one for Convenience business 1


Drive proactive key account management for mutual value creation


11/11/2015 22

Creating value together with customer

Listening to the customer 2


• Customer perception study was conducted as base to understand the main development points as well as strengths.

• Will be utilized in developing account management model.

11/11/2015 23

7.32

“Overall our relationship is solid. There is a good amount of cooperation back and forth. They are a valued and important supplier in our business and we see that for years to come.

Listening to the customer (Convenience) 2

“… I would like to see added value around innovations, new product development, exclusive access and technology. Those are benefits that I know they give to other customers, but I haven’t seen in with Suominen.”


Agenda excerpts • Trends and drivers in wipes markets • Peek to the world of social media – We Love Wipes in action • News from Suominen product portfolios • Brief Introduction to Suominen SPC™ technology • HYDRASPUN® Dispersible Plus – Performance and pleasure • Sustainability - What does it mean to you? How does pulp producer view

sustainability. - Speech and facilitation by Päivi Makkonen, Director, Metsä Group

• Tour at Cressa plant

11/11/2015 24

Creating value together with customers 2


Execute demand driven supply chain


11/11/2015 25

Defining and implementing standardized global processes

3

Comprehensive ICT systems renewal


Market Driven

Product Leader

Agile transformer

Global footprint

Innovative

Leadership for excellence

Opportunity to product

Demand to capability

Order to cash

ICT system renewal

11/11/2015 26

Vision Strategic capabilities

Core processes

Process framework

Standardized global processes at the core of way of working 3


Key drivers

• Findings in process harmonization project

• Current systems not fully supporting new business requirements

• Ambitious strategic targets

₋ Vision to become a market-driven product leader

₋ Growth strategy

Targets

• Utilize industry best-practices & strengthen our lead in the strategic areas

• Globally harmonized processes, e.g. order and account management

• Efficient supply chain • Smooth interplant cross-

qualification • Retain cost-conscious

way of working

ICT systems renewal: drivers and targets 3


Evolve culture and capabilities to build strong product company


11/11/2015 28

4

Pivotal recruitments building new and enhanced capabilities in several areas

Non-discrimination & equal opportunities program launched


Next steps towards our vision to be a Market Driven Product Leader

11/11/2015 29

Drive through the initiated

programs

Capitalize on new investments to drive growth

in chosen applications and

markets

Intensify product development activities with

increased number of new

product launches

ICT systems renewal

Enhanced focus on

Account management

and commercial excellence

Further development of capabilities

for product leadership

Thank you!

11/11/2015 30


Execution proceeds as planned on all fronts

2015

2016

2017

11/11/2015 1

Growth investment program in full speed Focused actions in Business areas Product development capability improvement

Bethune investment completed ICT systems renewal Enhanced account management

Net sales in the vicinity of 500 M€


Market Driven Product Leader

Suominen vision is to become a

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Capital Markets Day 2015, Nina Kopola, President & CEO on Nov 11

Investor Relations