2013-02-15 08:30:01 CET
2013-02-15 08:30:11 CET
REGULATED INFORMATION
Suominen Oyj - Financial Statement Release
Suominen Corporation's Financial Statement Release for January 1 - December 31, 2012: Operating profit excluding non-recurring items improved significantly
Tampere, Finland, 2013-02-15 08:30 CET (GLOBE NEWSWIRE) -- Suominen Corporation
Financial Statement Release 15 February, 2013 at 09:30am (EET)
SUOMINEN CORPORATION'S FINANCIAL STATEMENT RELEASE FOR
JANUARY 1 - DECEMBER 31, 2012:
OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS IMPROVED SIGNIFICANTLY
KEY FIGURES 10-12/2012 10-12/201 1-12/2012 1-12/2011
1
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Net sales, EUR million 109.0 84.8 454.9 213.4
Operating profit before 1.9 0.3 13.7 -1.1
non-recurring items, EUR million
Operating profit, EUR million -8.2 -2.4 0.9 -4.8
Profit/loss for the period, EUR -11.2 -3.8 -11.9 -9.5
million
Earnings/share, EUR -0.05 -0.02 -0.05 -0.11
Cash flow from operations/share, 0.05 -0.02 0.10 -0.03
EUR
Return on invested capital (ROI), % 0.4 -3.7
Gearing, % 100.7 111.0
Nina Kopola, President and CEO:
“I am satisfied with Suominen's development during 2012. The impacts of the
acquisition of Ahlstrom's Home and Personal business at the end of 2011 are now
visible for the first time in our annual result, of which the Nonwovens
business unit generates a significant share.
Consumer confidence remained more stable in North America than in Europe during
2012, which also resulted in variations in demand for our products in those
market areas. In the comparable pro forma assessment, our net sales for the
whole year fell from the previous year. Group's net sales increased
significantly in comparison with 2011.
Over the course of 2012, we developed the operations of the new Suominen
according to plan and carried out several profitability improvement projects as
part of our comprehensive Summit program. One of the key measures of the
program in the fourth quarter of 2012 was the discontinuation of the production
of polypropylene staple fibers at the Nakkila plant in Finland.
We were successful in carrying out the Summit program, achieving structural
cost savings of around EUR 10 million during 2012. This, in fact, slightly
exceeds our original target, which was approximately two per cent of our net
sales.
However, impairment losses and other non-recurring items recognized during the
year decreased the operating profit, which amounted to EUR 0.9 million.
Operating profit before non-recurring items was EUR 13.7 million.
At the end of 2012, we sharpened Suominen's strategy, and the Board of
Directors set new financial targets for the company. The renewed strategy
focuses on a common operating culture, improving profitability, growing the
share of products with higher value added, and a market leadership. Our goal is
a clear improvement in relative profitability, with a return on investments
(ROI) of more than 10%; a solid capital structure with a gearing ratio between
40% and 80%; and organic net sales growth that exceeds the average growth rate
in the industry.”
GROUP FINANCIAL RESULTS
In the fourth quarter, Suominen's net sales were EUR 109.0 million (84.8).
Operating profit before non-recurring items was EUR 1.9 million (0.3) and after
them EUR -8.2 million (-2.4). Profit before taxes was EUR -10.4 million (-3.3)
and profit after taxes EUR -11.2 million (-3.8).
Net sales for the full year 2012 totaled EUR 454.9 million (213.4). Operating
profit before non-recurring items was EUR 13.7 million (-1.1) and after them
EUR 0.9 million (-4.8), profit before taxes EUR -9.5 million (-10.0) and profit
after taxes EUR -11.9 million (-9.5).
Net sales decreased by 5% compared to the EUR 479 million pro forma net sales
in 2011 due to a decline in sales volumes and reduced sales prices in Europe.
The most significant factor affecting the European volumes was the burning down
of a production line in Italy in the autumn of 2011. The production of the
burnt spunlace line was discontinued for the first five months of 2012.
Regionally, demand was stronger in the US markets than in Europe.
Non-recurring items, equaling altogether EUR 12.8 million in net value,
comprised impairment losses and the restructuring costs in the Nonwovens and
Codi Wipes business units as well as profits from sales of assets in the
Flexibles business unit.
As part of the restructuring of the Nonwovens business unit's operations at the
Nakkila plant in Finland, the production capacity was cut down, resulting to
terminations of in total 69 permanent and 4 temporary employment contracts. The
restructurings led to non-recurring costs totaling EUR 5.9 million, comprising
of costs of the termination period (EUR 0.4 million) and an impairment loss
recognized to non-current assets (EUR 5.5 million). The impairment loss had no
cash flow effect.
During the fourth quarter of 2012, Suominen performed goodwill impairment
testing on its Codi Wipes business unit and recognized an impairment loss of
goodwill of EUR 7.3 million. The recognition had no cash flow effect.
In the Flexibles business unit, temporary layoffs were implemented to reduce
costs. Flexibles' former production plant in Nastola, Finland, was sold during
the period under review, resulting in a non-recurring gain of EUR 0.5 million.
Though the impairment losses decreased Suominen's operating profit, the
benefits of the integration of Suominen and Ahlstrom's Home and Personal
business were clearly visible in the improving operational profitability. The
reduction of the Group's operating costs continued according to plan as
specified in the Summit program. The program includes the integration of
Ahlstrom's Home and Personal business with Suominen and covers the realization
of synergy benefits in sales, sourcing, optimization of production lines and
logistics solutions. The aim of efficiency measures was to create cost savings
representing about two per cent of net sales. At the closing date, the amount
of cost savings totaled approximately EUR 10 million (some 2% of net sales).
The Summit project will end in the first quarter of 2013.
The prices of raw materials, representing the biggest part of costs, fluctuated
during the course of the year, but the fluctuations had no significant impacts
in the full-year financial result.
Cash flow from operations in the fourth quarter was EUR 11.7 million (-4.7),
and for the whole year EUR 24.9 million (-2.9). EUR 5.0 million in working
capital has been released in 2012, representing 1.1% of the net sales. Capital
expenditure was kept at a low level.
Completion of the business acquisition
The acquisition of the Brazilian unit belonging to the Home and Personal
business operations acquired from Ahlstrom has been delayed. Suominen and
Ahlstrom are continuing to examine the prerequisites and alternatives for
completing the transaction.
Financing
The Group's interest-bearing net liabilities amounted to EUR 97.2 million
(120.8) at the end of the review period. EUR 25 million held on escrow account
and included in the cash and bank were used in loan repayments. Suominen
updated its financing agreements with the banks during the final quarter. At
the end of 2012, the net debt to EBITDA ratio was not to exceed 4.9 and the
gearing ratio not to exceed 145%. At the end of the review period, the net debt
to EBITDA was 2.9 and the gearing 101%. Also the repayment schedule of loans
was postponed.
Net financial expenses were EUR 10.4 million (5.2), or 2.3% (2.4%) of net
sales. The increase in financial expenses was caused by the increased borrowing
and higher average interest rates on loans. A total of EUR 5.0 million was
released in working capital (1.9). Trade receivables amounting to EUR 13.1
million (10.9) were sold to the bank. The equity ratio was 34.5% (32.2) and the
gearing 100.7% (111.0%). Cash flow from operations was EUR 24.9 million (-2.9),
representing a cash flow of EUR 0.10 per share
(-0.03).
Capital expenditure
The company's gross investments in production totaled EUR 4.0 million (4.0) in
2012. Planned depreciation amounted to EUR 19.6 million (9.8). Nonwovens
accounted for EUR 1.9 million (1.5), Codi Wipes for EUR 0.7 million (0.4) and
Flexibles for EUR 0.6 million (1.9) of total investments. The Group's
investments were in maintenance.
NET SALES AND FINANCIAL RESULT IN SEGMENTS
Wiping
The Wiping segment of Suominen consists of two business units: Nonwovens and
Codi Wipes. The net sales of the Wiping segment totaled EUR 403.2 million
(149.4).
The operating profit of the Wiping segment was EUR 18.8 million (-2.2),
excluding the impairment losses and non-recurring costs. Including the
non-recurring items, the segment's operating profit was EUR 5.5 million (-3.1).
The result improved thanks to the business acquisition. The overall development
of sales margins was satisfactory due to the positive changes in the product
mix.
Net sales of the Nonwovens business unit totaled EUR 357.9 million (99.2) in
2012. Nonwovens' comparable full year net sales (pro forma) were EUR 365
million in 2011, of which net sales decreased by 2%. Delivery volumes declined
slightly in comparison with comparable operations. The main application areas
for nonwoven materials were distributed as follows: baby wipes accounted for
47% of sales, household wipes for 19%, personal care wipes for 18%, and
industrial wipes for 10%. Sales of nonwovens for personal care and household
wipes increased, while in other application areas sales declined.
Consumer demand in the wet wipes applications favored on the American markets
was stronger than in product areas typical of Europe. European net sales were
also affected by the tightening competition, a consequence of increased
production capacity. At Suominen's plant in Italy, the ramp up of the efficient
spunlace production line, which had been interrupted since autumn 2011 due to
damage from fire, was completed in early summer.
In the annual figures, the total impact of the changes in raw material prices
was not significant in 2012.
The codetermination negotiations at the Nakkila plant in Finland reached a
conclusion. The plant's operations will be reshaped with the objective of
achieving a positive financial result. A decision was made to close down the
plant's thermobond production, one spunlace line and the in-house production of
polypropylene staple fibers. Due to the measures taken, the number of employees
reduced by over 70 employees, which led to non-recurring compensations of EUR
0.4 million paid for the termination period. An impairment loss of EUR 5.5
million to fixed assets was recognized due to the reductions in production
capacity.
Costs of the Nonwovens business unit declined thanks to the Summit program. The
program identified several targets for cost savings, and the resulting
permanent improvement in cost structure will be fully visible in Suominen's
financial result after the first quarter of 2013, when the Summit project will
be completed. The measures and procedures included in the project will be
incorporated into the daily operations of Nonwovens, in keeping with the Group
strategy that aims to achieve significant improvements in profitability.
Net sales of the Codi Wipes business unit decreased by 11% to EUR 49.4 million
(55.6). Sales of personal hygiene wipes remained at the previous year's level,
with a 50% share of the sales; sales of moist toilet wipes grew slightly (10%
share) but sales of baby wipes decreased (40% share). Average sales prices
reduced from the previous year. The decline in margins caused by the decreased
volume was partly compensated by savings in operating expenses.
During the fourth quarter of 2012, Suominen performed goodwill impairment
testing on the Codi Wipes business unit, placing greater emphasis on market
risks than in prior tests due to the market uncertainty. Based on the results
of the tests, Suominen recognized a goodwill impairment loss of EUR 7.3 million
in the Codi Wipes business unit. The recognition had no effect on the cash
flow. After the recognition of the goodwill impairment loss, EUR 11.2 million
of goodwill remains in the cash generating unit.
Flexibles
In 2012, net sales of the Flexibles segment totaled EUR 52.7 million (64.8),
falling 19% from the previous year. Sales of hygiene packaging decreased due to
customer losses at the end of 2011. Sales of food packaging and retail carrier
bags declined, while sales of security and system packaging increased.
Flexibles managed to compensate the customer losses through the procurement of
new business, but weak consumer demand on the Flexibles market is slowing down
the compensation. As customer estimates provided no signs of any immediate
change for the positive, employees were temporarily laid off to achieve cost
savings.
The operating loss of the segment was EUR -2.8 million (-0.7) excluding
non-recurring items and EUR -2.3 million (-0.1) including them. The total
impact of the changes in raw material prices for flexible packaging slightly
decreased profitability. Operating expenses were lower than in the previous
year thanks to the rationalization measures carried out in production in 2011.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
The registered number of Suominen's issued shares totals 245,934,122 shares,
equaling a share capital of EUR 11,860,056.00.
Annual General Meeting
The Annual General Meeting (AGM) of Suominen Corporation was held on 4 April,
2012. The General Meeting decided that no dividend to be paid for the financial
year 2011.
The AGM adopted the financial statements and the consolidated financial
statements for the financial year 2011 and discharged the members of the Board
of Directors and the President and CEOs from liability.
The AGM confirmed the number of members of the Board of Directors to be five
(5). The AGM elected Mr Risto Anttonen, Mr Jorma Eloranta, Ms Suvi Hintsanen,
Mr Hannu Kasurinen and Mr Heikki Mairinoja as the members of the Board of
Directors for the next term of office in accordance with the Articles of
Association. In its constitutive meeting, the Board of Directors elected Jorma
Eloranta as its Chairman and Risto Anttonen as Deputy Chairman.
PricewaterhouseCoopers Oy, Authorized Public Accountants, was re-elected as
auditor, with Heikki Lassila, Authorised Public Accountant, as the principal
auditor.
The AGM decided to amend the section 1 of the Articles of Association regarding
the name of the company. The company's name in Finnish is Suominen Oyj instead
of Suominen Yhtymä Oyj.
The AGM resolved to establish a Nomination Committee comprising of shareholders
or representatives of shareholders to prepare proposals for the following
Annual General Meeting concerning the election and remuneration of the members
of the Board of Directors. The three largest shareholders or representatives of
such shareholders are elected to the Nomination Committee, which in addition
shall comprise the Chairman of the Board of Directors as an expert member.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 31 December 2012 was 3,660,581 shares, accounting for 1.5% of the
share capital and votes. The trading price varied between EUR 0.33 and EUR
0.47. The closing trading price was EUR 0.35, giving the company a market
capitalization of EUR 86,055,838 on 31 December 2012.
Own shares
On 1 January 2012 and 31 December 2012, Suominen Corporation held 60,298 of its
own shares, accounting for 0.0% of the share capital and votes.
Stock options
Option right holders hold 200,000 of Suominen's 2009B stock options. The
subscription period for the 2009B stock options is from 2 May 2012 to 30
October 2013 and the subscription price is EUR 0.96.
As the registered number of Suominen's issued shares totals 245,934,122, the
number of shares may rise to a maximum of 246,134,122 after stock option
subscriptions.
Share-based rewards
The target group of Suominen's share-based incentive plan consists of
approximately 14 employees. The rewards to be paid on the basis of the plan
correspond to the value of an approximate maximum total of 5,050,000 Suominen
Corporation shares, including also the cash-settled part. The aim of the plan
is to combine the objectives of the shareholders and the key employees in order
to increase the value of the company, to commit the key employees to the
company, and to offer them a competitive reward plan based on long-term
shareholding in the company. The plan includes one performance period, the
calendar years 2012-2014. The potential reward from the performance period will
be based on Suominen Group's cumulative Earnings before Interest, Taxes,
Depreciation and Amortization (EBITDA) and cumulative cash flow, and it will be
paid in 2015 partly in the company's shares and partly in cash.
Authorizations of the Board of Directors
The Annual General Meeting has authorized the Board of Directors to repurchase
a maximum of 3,000,000 of the company's own shares. The Board of Directors is
also authorized to decide on issuing new shares and/or conveying the company's
own shares held by the company and/or granting special rights entitling to
shares referred to in Chapter 10, Section 1 of the Finnish Companies Act. A
maximum of 50,000,000 new shares may be issued. The maximum number of new
shares that may be subscribed and own shares held by the company that may be
conveyed by virtue of the special rights granted by the company is 10,000,000
shares in total which number is included in the maximum number stated earlier
(50,000,000). The authorizations shall be valid until 30 June 2013.
CHANGES IN GROUP MANAGEMENT
Mr Olli E. Juvonen was appointed Vice President, General Manager of the
Flexibles business area and member of the Corporate Executive Team in Suominen
Corporation as of 10 December, 2012.
Mr Tapio Engström was appointed Chief Financial Officer and member of the
Corporate Executive Team in Suominen Corporation as of 22 October, 2012.
Mr. Petri Rolig, Deputy CEO, announced on 2 May, 2012 that he will resign from
Suominen in the end of May 2012.
Mr Hannu Sivula was appointed Vice President, Human Resources and a member of
the Corporate Executive Team of Suominen Corporation as of 17 February 2012.
PERSONNEL
In 2012, Suominen employed an average of 1,220 (907) people. At the end of the
year, the number of employees stood at 1,232 (1,229).
BUSINESS RISKS AND UNCERTAINTIES
Suominen and Ahlstrom continue to negotiate the prerequisites and alternatives
for completing the transaction of the Brazilian unit of Ahlstrom's Home and
Personal business. The conditions for achieving a solution are that a common
agreement be reached on the acquisition and that financers approve of the
acquisition and its financing. However, the delay or cancellation of the
acquisition of the Brazilian unit would not cause financial losses for
Suominen.
The estimate on the development of Suominen's net sales is in part based on
forecasts and delivery plans received from customers. Changes in these
forecasts and plans resulting from changes in the market conditions or in
customers' inventory levels may affect Suominen's net sales. Due to the
continued uncertainty in the general economic situation and the cautious
consumer purchasing habits, the forecasts include uncertainty.
Suominen's customer base is fairly concentrated, which adds to the
customer-specific risk. Long-term contracts are preferred in the case of the
largest customers. In practice the customer relationships are long-term and
last for several years.
Suominen purchases significant amounts of oil and pulp-based raw materials
annually. Raw materials are the largest cost item for operations. Rapid changes
in the global market prices of raw materials affect the company's
profitability. Extended interruptions in supplies of Suominen's main raw
materials could disrupt production and have a negative impact on the Group's
overall business operations. As Suominen sources its raw materials from a
number of major international suppliers, significant interruptions are
unlikely.
Suominen has numerous regional, national and international competitors in its
different product groups. There is currently oversupply in several product
groups especially in Europe. If Suominen is not able to compete through an
attractive product offering, it may lose some of its market share, and the
competition may lead to increased pricing pressure on the company's products.
The Group's damage risks are insured in order to guarantee the continuity of
operations. Suominen has valid damage and business interruption insurance
according to which it is estimated that the damages can be covered and the
financial losses caused by an interruption compensated.
Suominen's credit arrangements include covenants that the company must meet.
After the interim report of 30 September 2012, Suominen and its financers
agreed on adjusted financial covenants. At year-end 2012, Suominen's net debt
to EBITDA were not to exceed 4.9 and the company's gearing ratio had to be less
than 145%. In this release, these key figures are 2.9 and 101%. At the end of
2013, the indicators may not exceed 3.6 and 125%, respectively.
The sensitivity of Suominen's goodwill to changes in business conditions is
described in the notes to the financial statements 2011. Actual cash flows may
deviate from the forecasted future discounted cash flows, as the long economic
life-time of the company's non-current assets, and changes in the estimated
product prices, production costs, and interest rates used in discounting may
result in write-downs. The fair value based on the value in use of assets or
businesses in total or in part does not necessarily correspond to the price
that a third party would pay for them.
General risks related to business operations are described in the Report of the
Board of Directors 2011.
OUTLOOK FOR 2013
Suominen's products are used in daily consumer goods, such as wet wipes and
plastic packaging. The general economic situation determines the development of
consumer demand, even though the demand for consumer goods is not very cyclical
in nature. Consumers' cautious purchasing behavior is expected to continue hand
in hand with the muted economic growth. Supply exceeds demand for many of
Suominen's products, especially in Europe, and even more new production
capacity is being built in some product groups.
The company estimates the trend in demand for its products on the basis of both
the general market situation and, above all, on the basis of the framework
agreements drawn up with its clients. Suominen estimates that the demand for
its products will remain at the level of 2012.
Suominen continues to streamline its operating costs and realize the synergy
benefits related to the acquisition of Ahlstrom's Home and Personal business.
The company estimates that its net sales for the full year 2013 will remain at
the level of 2012. Operating profit excluding non-recurring items is expected
to improve from year 2012. In 2012, Suominen's net sales were EUR 454.9 million
and operating profit excluding non-recurring items EUR 13.7 million.
PROPOSAL ON DISTRIBUTION OF FUNDS
The parent company's distributable assets as of the end of 2012 totalled EUR
84,692,995.95 of which the loss for the financial year, EUR 3,057,661.86 has
been deducted.
The Board of Directors will propose at the Annual General Meeting to be held on
26 March, 2012 that these funds be distributed as follows:
No dividend be paid for the financial year, EUR 0.00
Leaving on the retained earnings account, EUR 84,692,995.95
SUOMINEN GROUP CONSOLIDATED 1 JANUARY - 31 DECEMBER 2012
This financial statement release has been prepared in compliance with IAS 34
Interim Financial Reporting. Changes to published accounting standards and
interpretations, together with the new accounting standards that came into
force on 1 January 2012, are presented in the financial statements for 2011.
All calculations in this financial statement release have been prepared in
compliance with the revised IAS 1 standard, ‘Presentation of Financial
Statements'. This standard is aimed at improving users' ability to analyse and
compare the information given in financial statements by separating changes in
equity of an entity arising from transactions with owners from other changes in
equity. Non-owner changes in equity will be presented in the statement of
comprehensive income.
In its principles for preparing the financial statements, Suominen has not
applied any changes allowed by the published new standards and interpretations
prior to their official introduction. The accounting principles are consistent
in other respects with those of the annual financial statements for 2011.
The figures in this financial statement release are audited.
BALANCE SHEET
EUR 1,000 31 Dec 2012 31 Dec 2011
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Assets
Non-current assets
Goodwill 26,715 34,298
Intangible assets 12,529 13,333
Tangible assets 118,019 139,886
Available-for-sale financial assets 19 25
Held-to-maturity investments 466 445
Deferred tax assets 6,067 3,351
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Non-current assets, total 163,816 191,338
Current assets
Inventories 42,431 45,972
Trade receivables 45,328 41,798
Other current receivables 11,772 17,480
Income tax receivables 1,293 610
Financial assets on escrow 25,000
Cash at bank and in hand 14,301 15,887
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Current assets, total 115,125 146,747
Assets, total 278,940 338,085
Shareholders' equity and liabilities
Equity attributable to owners of the parent company
Share capital 11,860 11,860
Share premium account 24,681 24,681
Invested non-restricted equity fund 97,054 97,054
Fair value and other reserves -1,253 -484
Translation differences -549 -637
Other shareholders' equity -35,535 -23,737
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Shareholders' equity, total 96,258 108,737
Liabilities
Non-current liabilities
Deferred tax liabilities 5,653 3,661
Provisions 280 280
Capital loans 920
Other non-current liabilities 1,035 1,234
Interest-bearing liabilities 90,027 139,961
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Non-current liabilities, total 96,995 146,056
Current liabilities
Interest-bearing liabilities 20,571 19,929
Capital loans 920 920
Income tax liabilities 737 724
Trade payables and other current liabilities 63,460 61,719
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Current liabilities, total 85,688 83,292
Liabilities, total 182,683 229,348
Shareholders' equity and liabilities, total 278,940 338,085
STATEMENT OF INCOME
EUR 1,000 10-12/201 10-12/201 1-12/201 1-12/201
2 1 2 1
Net sales 108,971 84,847 454,909 213,350
Cost of goods sold -100,983 -80,963 -417,262 -205,507
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Gross profit 7,988 3,884 37,647 7,842
Other operating income 694 2,214 6,838 4,905
Sales and marketing expenses -2,090 -1,402 -7,574 -4,050
Research and development -1,803 -577 -3,903 -1,866
Administration expenses -2,535 -733 -18,716 -4,801
Other operating expenses -309 -3,043 -568 -3,168
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Operating profit before non-recurring 1,945 344 13,724 -1,138
items
Non-recurring items -10,116 -2,702 -12,777 -3,691
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Operating profit -8,171 -2,359 947 -4,829
Financial income and expenses -2,231 -938 -10,410 -5,197
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Profit before income taxes -10,402 -3,297 -9,463 -10,026
Income taxes -788 -535 -2,409 494
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Profit/loss for the period -11,190 -3,832 -11,872 -9,531
Earnings/share, EUR -0.05 -0.02 -0.05 -0.11
STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 10-12/2012 10-12/201 1-12/2012 1-12/2011
1
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Profit/loss for the period -11,190 -3,832 -11,872 -9,531
Other comprehensive income
Currency translation differences on -474 1 -438 -1,594
foreign operations
Fair value changes of cash flow -247 -491 -1,007 -1,714
hedges
Other reclassifications -54 -2 -6 -20
Income tax on other comprehensive 21 156 765 889
income
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Other comprehensive income, total -754 -336 -686 -2,440
Total comprehensive income for the -11,944 -4,167 -12,558 -11,972
period
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
1. Share capital
2. Share premium account
3. Invested non-restricted equity fund
4. Own shares
5. Translation differences
6. Fair value reserves
7. Retained earnings
8. Total
EUR 1,000 a. b. c. d. e. f. g. h.
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Total equity at 11,860 24,681 97,054 -43 -637 -441 -23,737 108,737
1 Jan 2012
Profit/loss for -11,872 -11,872
the period
Other 88 -769 -6 -686
comprehensive
income
Share-based 79 79
payments
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Total equity at 11,860 24,681 97,054 -43 -549 -1,210 -35,536 96,258
31 Dec 2012
EUR 1,000 a. b. c. d. e. f. g. h.
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Total equity at 11,860 24,681 9,708 -163 515 828 -14,143 33,286
1 Jan 2011
Profit/loss for -9,531 -9,531
the period
Other -1,152 -1,268 -20 -2,440
comprehensive
income
Share-based 26 26
payments
Share issue 87,346 87,346
Conveyance of 120 -69 51
own shares
Total equity at 11,860 24,681 97,054 -43 -637 -441 -23,737 108,737
31 Dec 2011
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CASH FLOW STATEMENT
EUR 1,000 1-12/2012 1-12/2011
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Operations
Operating profit 947 -4,829
Total adjustments 31,775 9,459
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Cash flow before change in working capital 32,599 4,630
Change in working capital 4,961 1,907
Financial items -9,705 -9,833
Taxes paid -3,040 397
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Cash flow from operations 24,938 -2,898
Investment payments
Investments in tangible and intangible assets -3,619 -4,231
Investments in acquired business operations -139,810
Proceeds from disposal of fixed assets and other proceeds 2,115 1,628
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Cash flow from investing activities -1,504 -142,414
Financing
Non-current loans drawn 148,250
Repayments of non-current loans -38,713 -48,563
Repayments of capital loans -920 -4,160
Change in current loans -10,550
Repurchase and conveyance of own shares 51
Share issue 87,346
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Cash flow from financing -50,183 182,924
Change in cash and cash equivalents * -26,749 37,613
Cash and cash equivalents 40,887 3,253
Unrealized exchange rate differences 164 21
Change in cash and cash equivalents -26,749 37,613
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Cash and cash equivalents 14,301 40,887
* Also includes the change in financial assets on escrow.
KEY FIGURES 10-12/2012 10-12/2011 1-12/2012 1-12/2011
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Net sales, change, % * 28.4 87.2 113.2 23.0
Gross profit, % ** 7.3 4.6 8.3 3.7
Operating profit, % ** -7.5 -2.8 0.2 -2.3
Financial income and -2.0 -1.1 -2.3 -2.4
expenses, % **
Profit before income taxes, % ** -9.5 -3.9 -2.1 -4.7
Profit for the period, % ** -10.3 -4.5 -2.6 -4.5
Earnings/share, EUR -0.05 -0.02 -0.05 -0.11
Equity/share, EUR 0.39 0.44
Cash flow from 0.10 -0.03
operations/share, EUR
Return on equity (ROE), % -11.2 -20.9
Return on invested capital (ROI), 0.4 -3.7
%
Equity ratio, % 34.5 32.2
Gearing, % 100.7 111.0
Gross investments, EUR 1,000 4,008 3,964
Depreciation, EUR 1,000 19,606 9,835
Impairment losses, EUR 1,000 12,816
* Compared with the corresponding period of the previous year.
** As of net sales.
SEGMENT REPORTING
Wiping
EUR 1,000 1-12/2012 1-12/2011 Change %
---------------------------------------------------------------------------
Net sales
- Codi Wipes 49,436 55,623 -11.1
- Nonwovens 357,873 99,182 260.8
- eliminations -4,108 -5,431 -24.4
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total 403,201 149,374 169.9
Operating profit before non-recurring items 18,803 -2,172
% of net sales 4.7 -1.5
Operating profit 5,542 -3,072
% of net sales 1.4 -2.1
Assets 237,084 242,028
Liabilities 53,446 49,616
Net assets 183,638 192,412
Investments 2,608 1,910
Depreciation 15,358 6,524
Impairment losses 12,816
Average personnel 758 418
Flexibles
EUR 1,000 1-12/2012 1-12/2011 Change %
---------------------------------------------------------------------------
Net sales 52,698 64,848 -18.7
Operating profit before non-recurring items -2,786 721
% of net sales -5.3 1.1
Operating profit -2,302 -69
% of net sales -4.4 -0.1
Assets 37,087 44,372
Liabilities 8,634 11,175
Net assets 28,453 33,197
Investments 554 1,851
Depreciation 2,868 3,049
Average personnel 453 479
Non-allocated items
EUR 1,000 1-12/2012 1-12/2011
---------------------------------------
Net sales -991 -873
Operating profit -2,293 -1,688
Assets 4,770 51,685
Liabilities 120,604 168,557
Investments 845 203
Depreciation 1,380 262
Average personnel 9 10
NET SALES BY MARKET AREA
EUR 1,000 1-12/2012 1-12/2011
---------------------------------------------
---------------------------------------------
Finland 23,917 27,547
Europe, other 205,570 141,622
North and South America 213,776 41,665
Other countries 11,645 2,515
---------------------------------------------
---------------------------------------------
Net sales, total 454,909 213,350
QUARTERLY FIGURES
EUR 1 000 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1-Q4/20
12
--------------------------------------------------------------------------------
Net sales
Wiping
- Codi Wipes 13,118 12,278 12,161 11,880 49,436
- Nonwovens 85,673 89,394 97,917 84,890 357,873
- eliminations -1,333 -1,175 -711 -889 -4,108
--------------------------------------------------------------------------------
Total 97,458 100,496 109,366 95,880 403,201Flexibles 13,906 12,766 12,658 13,369 52,698
Non-allocated items -278 -180 -255 -278 -991
--------------------------------------------------------------------------------
Net sales, total 111,087 113,082 121,769 108,971 454,909
Operating profit
Wiping 3,751 3,874 8,146 3,032 18,803
% of net sales 3.8 3.9 7.4 3.2 4.7
Flexibles -576 -816 -576 -818 -2,786
% of net sales -4.1 -6.4 -4.5 -6.1 -5.3
Non-allocated items -468 -664 -891 -270 -2,293
--------------------------------------------------------------------------------
Operating profit before 2,707 2,394 6,679 1,944 13,724
non-recurring items
% of net sales 2.4 2.1 5.5 1.8 3.0
Non-recurring items 484 -2,700 -445 -10,116 -12,777
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit, total 3,190 -306 6,234 -8,171 947
% of net sales 2.9 -0.3 5.1 -7.5 0.2
Net financial expenses -2,731 -2,494 -2,954 -2,230 -10,409
--------------------------------------------------------------------------------
Profit before income taxes 459 -2,800 3,280 -10,402 -9,463
TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is calculated by country, on the basis of taxable results
and income tax rates.
INFORMATION ON RELATED PARTIES
Suominen has related party relationships with the members of the Board of
Directors, and the members of the Corporate Executive Team, and Ahlstrom
Corporation, including its subsidiaries and associated companies. The company
has no investments in associated companies. Salaries paid to the related
parties amounted to EUR 1,386 thousand, obligatory pension payments EUR 101
thousand, voluntary pension payments EUR 38 thousand and share-based payments
EUR 79 thousand.
Other related-party transactions
EUR 1,000 1-12/2012 1-12/2011
-----------------------------------------------------
-----------------------------------------------------
Sales of goods and services 19,653 1,402
Purchases of goods and services 54,191 1,517
Trade and other receivables 1,049 5,337
Trade and other payables 2,165 2,370
Other related-party transactions are transactions with Ahlstrom Corporation and
its subsidiaries and associated companies.
CHANGES IN BORROWINGS
EUR 1,000 1-12/2012 1-12/2011
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total borrowings on 1 January 161,730 61,282
Current loans from financial institutions on 1 January 19,929 17,000
Change in current loans from financial institutions 642 2,929
------------------------------------------------------------------------------
Current loans from financial institutions on 31 December 20,571 19,929
Commercial papers on 1 January 988
Change in commercial papers -988
------------------------------------------------------------------------------
Commercial papers on 31 December 0
Non-current loans on 1 January 139,961 37,284
Change in non-current loans -49,934 102,667
------------------------------------------------------------------------------
Non-current loans on 31 December 90,027 139,961
Capital loans on 1 January 1,840 6,000
Change in capital loans -920 -4,160
------------------------------------------------------------------------------
Capital loans on 31 December 920 1,840
Total borrowings on 31 December 111,518 161,730
CHANGES IN FIXED ASSETS
1-12/2012 1-12/2011
EUR 1,000 Tangible Intangible Tangible Intangible
--------------------------------------------------------------------------------
Book value at the beginning of the 139,886 13,333 53,873 776
period
Business combinations 89,124 12,584
Investments 3,261 747 3,678 223
Decreases -1,385 -1,271
Depreciation -23,603 -1,542 -9,399 -436
Translation differences and other -140 -8 3,881 187
changes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Book value at the end of the period 118,019 12,529 139,886 13,333
CONTINGENT LIABILITIES
EUR 1,000 1-12/2012 12/2011
-------------------------------------------------------------
For own debt
Secured loans 107,861 158,264
Nominal values of pledges
Real estate mortgages 27,045 27,045
Floating charges 193,988 194,414
Pledged subsidiary shares and loans 209,160 217,812
Other own commitments
Operating leases, real estates 27,177 29,532
Operating leases, machinery and equipment 2,705 3,482
Guarantee commitments 1,199 1,432
NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
EUR 1,000 1-12/2012 12/2011
---------------------------------------------
Currency derivatives
Nominal value 15,370 8,501
Fair value -1 11
Interest rate derivatives
Nominal value 64,648 76,492
Fair value -1,538 -216
Electricity derivatives
Nominal value 3,746 2,860
Fair value -282 -458
Suominen will publish financial releases in 2013 as follows:
* Interim report for January-March on April 19, 2013
* Interim report for January-June on July 17, 2013
* Interim report for January-September on October 23, 2013.
Suominen Corporation's Report by the Board of Directors, Financial Statements,
Auditor's report and Corporate Governance Statement will be available on
company website on March 5, 2013 at the latest.
Helsinki, 15 February, 2013
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Mrs Nina Kopola, President and CEO: +358 (0)10 214 300
Mr Tapio Engström, Senior Vice President and CFO, tel. +358 (0)10 214 300
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.suominen.fi
Suominen in brief
Suominen supplies its industrial and retail customers with nonwovens, wet wipes
and flexible packaging for use in consumer products worldwide. Suominen is the
global market leader in nonwovens for wipes. The company employs approximately
1,200 people in Europe and in the United States. Suominen's net sales in 2012
amounted to MEUR 454.9 and operating profit excl. non-recurring items was MEUR
13.7. The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock
Exchange. Read more at www.suominen.fi.
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