Suominen Oyj - Company Announcement

Suominen enters a new strategic period - target level for return on investment increased, dividend policy disclosed

Helsinki, Finland, 2014-10-24 07:15 CEST (GLOBE NEWSWIRE) -- Suominen
Corporation  Stock exchange release 24 October 2014 at 8.15am (EEST) 

SUOMINEN ENTERS A NEW STRATEGIC PERIOD - TARGET LEVEL FOR RETURN ON INVESTMENT
INCREASED, DIVIDEND POLICY DISCLOSED 

Suominen, a company focusing on developing and manufacturing nonwovens, enters
a new strategic period. During its next strategic period, covering the years
2015 - 2017, Suominen will be evolved even more actively than earlier to be the
forerunner in its industry. 

Suominen's strategy continues to be based on three cornerstones: Suominen Way,
Step Change in Profitability and In the Lead. In the coming strategy period,
Suominen will emphasize more strongly than before the In the Lead cornerstone
and consequently targets growth, market-driven way of operating and product
leadership. 

To execute the strategy, it is essential that Suominen

* delivers superior value in thoughtfully selected market applications
* drives proactive key account management for mutual value creation
* executes demand driven supply chain
* evolves culture and capabilities to build strong product company.

The strategic financial targets are as follows:

* Return on investment (ROI) of above 12% (previous target level above 10%).
* Gearing ratio principally between 40% and 80%
* Organic net sales growth at a rate that exceeds the industry average.

If Suominen reaches the targeted net sales growth, the company's net sales will
amount to approximately EUR 500 million by the end of 2017. 

The refinancing implemented in September 2014 enables the execution of the
strategy that prioritizes growth. Suominen estimates that during the strategic
period, it will expend approximately EUR 30 - 50 million in growth investments. 

Dividend policy

Suominen's Board of Directors has approved a dividend policy for the company.
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. 

Capital Markets Day focuses on the new strategic period of Suominen

Suominen holds a Capital Markets Day for analysts and institutional investors
on Wednesday, 12 November 2014 from 12.00 (noon) to 17.00 EET in Helsinki. The
event will be held in English will focus on Suominen's strategy for 2015 -
2017. The invitation for the event has been disclosed as a Stock Exchange
Release on 2 October 2014. To register, please contact Eeva Oinonen at
eeva.oinonen@suominencorp.com by Monday 3 November 2014. 

Suominen Corporation
Nina Kopola, President & CEO

For additional information, please contact Nina Kopola, President & CEO, tel
+358 10 214 300 




Distribution:
NASDAQ OMX Helsinki Ltd.
Main media
www.suominen.fi


Suominen in brief

Suominen manufactures nonwovens as roll goods for wipes as well as for medical
and hygiene products. The end products made of Suominen's nonwovens - wet
wipes, feminine care products and swabs, for instance - bring added value to
the daily life of consumers worldwide. Suominen is the global market leader in
nonwovens for wipes and employs approximately 600 people in Europe and in the
Americas. Suominen's net sales in 2013 amounted to MEUR 373.7 and operating
profit excluding non-recurring items to MEUR 19.4 (continuing operations). The
Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange. Read
more at www.suominen.fi.