2014-04-29 07:30:02 CEST
2014-04-29 07:30:07 CEST
REGULATED INFORMATION
Suominen Oyj - Interim report (Q1 and Q3)
Suominen Corporation's Interim report for January 1 - March 31, 2014: Significant improvement in operating profit
Helsinki, Finland, 2014-04-29 07:30 CEST (GLOBE NEWSWIRE) -- Suominen
Corporation Interim Report 29 April 2014 at 08:30am (EEST)
SUOMINEN CORPORATION'S INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2014:
SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT
KEY FIGURES Q1/ Q1/ Q1-Q4/
2014 2013 2013
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Net sales, EUR million 114.2 111.7 433.1
Operating profit before 7.0 5.0 18.1**
non-recurring items, EUR million
Operating profit, EUR million 6.8 5.0 17.2**
Profit/loss for the period, 2.9 1.2 2.5
EUR million, continuing operations
Profit/loss for the period, EUR million, -0.1 -18.7
discontinued operations
Profit/loss for the period, 2.9 1.1 -16.1
EUR million, total
Earnings/share, EUR, 0.01 0.00 0.01
continuing operations
Earnings/share, EUR, 0.00 -0.08
discontinued operations
Earnings/share, EUR, Group 0.01 0.00 -0.07
Cash flow from operations/share, 0.00 -0.01 0.09
EUR**
Return on invested capital (ROI), % * 0.3 1.2 -0.7
Return on invested capital (ROI), %, continuing operations 10.4 4.6 9.6
Gearing, % ** 79.3 102.0 96.2
* Including discontinued operations.
** Comparison data adjusted due to revisions in internal calculating principles.
All figures in this interim report refer to continuing operations of the Group
unless otherwise stated. The figures are compared with those of the
corresponding period in 2013 unless otherwise stated. In accordance with IFRS
5, the comparison data of the balance sheets have not been revised and,
consequently, include discontinued operations.
Highlights in January - March 2014:
- Net sales increased by 2.2% and amounted to EUR 114.2 million (111.7).
- Operating profit excluding non-recurring items increased by 42% to EUR 7.0
million (5.0).
- Suominen extended its business operations to South America by acquiring a
nonwoven manufacturing unit located in Brazil from Ahlstrom.
- The investment project for the automatization of the Tampere plant of
Flexibles business area was started. The total value of the investment is
approximately EUR 0.5 million.
- Suominen repeats its previous estimate, disclosed on 10 February 2014, that
its net sales and operating profit excluding non-recurring items for the full
year 2014 improve from year 2013. In 2013, the net sales were EUR 433.1 million
and the reported operating profit excluding non-recurring items EUR 18.3
million (continuing operations).
President & CEO Nina Kopola comments on Suominen's first quarter of 2014:
“The consumer confidence index in the euro zone strengthened towards the end of
the first quarter. The upswing in the U.S. economy continued in the first
quarter, although there were slight fluctuations in the consumer confidence
index during the period.
Suominen kicked off 2014 on a positive note. The expansion of our business to
South America through a transaction that was agreed on with Ahlstrom in January
and confirmed in February was an important milestone for us. The acquisition of
the plant located in Paulínia, Brazil gives us a foothold in the highly
promising South American markets and further reinforces our leading position as
a global manufacturer of nonwovens for wiping products. The enterprise value of
the transaction was EUR 17.5 million, and we financed it through a convertible
hybrid bond. The bond was issued in February and it was oversubscribed.
The first quarter of 2014 was positive for Suominen also in the light of the
company's financial figures. Suominen's net sales increased 2% to EUR 114.2
million. Operating profit, excluding non-recurring items, grew 42% to EUR 7.0
million, which is an all-time-high operating profit for Suominen in a quarter.
The improvement in profitability demonstrates the effectiveness of our chosen
strategy: We have succeeded in increasing the share of products with higher
added value in our portfolio. In addition, the favorable development of our
operating profit was boosted by the Flexibles segment's positive result in the
first quarter and by the cost-conscious approach that has been adopted
Group-wide.
Two out of three of Suominen's medium-term financial targets reached their
target level in the first quarter. Our gearing ratio declined to 79.3%
(targeted range 40-80%), thanks to both the hybrid bond mentioned above and
debt repayments. The return on investments (ROI) from Suominen's continuing
operations was 10.4% (target >10%).
Net sales of the Nonwovens segment was close to the level of the comparison
period, at EUR 98.4 million (97.2). The segment's operating profit, excluding
non-recurring items, grew 35% to EUR 6.0 million (4.4), corresponding to 6.1%
of net sales.
The Flexibles segment's net sales grew 10%, totaling EUR 15.8 million (14.4).
Flexibles' operating profit increased to EUR 0.4 million (0.0). The effects of
the rationalization measures that were implemented at the turn of the year were
still not fully reflected in the segment's key figures.
In the first quarter, we continued with our consistent work to implement our
strategy In the Lead. The investment to expand production capacity of flushable
nonwovens at the Windsor Locks plant in the U.S. proceeded according to plan.
The roughly two-week installation shutdown for the new machinery will last
until the end of April, and the expanded capacity will be in full operation by
the end of May. We have also expanded our offering of flushable nonwovens in
Europe. In addition, we have further reinforced the position of products with
higher added value in our portfolio by introducing a new nonwoven product for
hotel and restaurant industry customers.
The changes announced in September 2013 concerning Suominen's group structure,
organization, management system and operating model entered into force on 1
January 2014. As part of the changes, as of 1 January 2014, Suominen's
Nonwovens segment consists of two business areas, Convenience and Care.”
GROUP NET SALES AND FINANCIAL RESULT
January-March 2014
In January-March 2014, Suominen's net sales grew by 2% from the comparison
period to EUR 114.2 million (111.7). Operating profit before non-recurring
items increased by 42% and amounted to EUR 7.0 million (5.0). Operating profit
after non-recurring items was EUR 6.8 million (5.0). The non-recurring items
reported in the review period amounted to EUR -0.2 million (0.0), of which EUR
0.2 million in Nonwovens segment and EUR -0.5 in the non-allocated items.
Profit before taxes was EUR 5.1 million (2.7) and profit for the period EUR 2.9
million (1.2).
The growth in net sales can largely be attributed to the acquisition of the
Brazilian unit in February and the favorable development of sales in the
Flexibles segment. The increase in the share of products with higher added
value in the portfolio and high cost-awareness throughout the company improved
Suominen's operating profit.
Cash flow from operations was EUR -0.4 million (-2.1) in January - March. As of
the beginning of the year, EUR 8.9 million (tied up 8.4) in working capital was
tied up.
BUSINESS COMBINATIONS AND DISCONTINUED OPERATIONS
Business combinations
Suominen completed the acquisition of Paulínia plant in Brazil from Ahlstrom
Corporation on 10 February 2014. The Paulínia plant was part of Ahlstrom´s
former Home and Personal business operations, acquired by Suominen in 2011, but
the transfer of the Brazilian unit was prolonged due to delay in receiving
approval from the authorities and consequent renegotiations. The transaction
was implemented through acquisition of the shares of the local company. The
enterprise value of the transaction was EUR 17.5 million. This consideration is
a preliminary estimate and it will be finalized along with the working capital
items.
The closing of the deal provides Suominen's nonwovens business a foothold in
the growing South American market region. The acquired plant is the only
nonwovens manufacturing facility utilizing modern spunlace technology in
production of wiping products in Brazil. The site employs some 40 people and
its annual net sales have amounted approximately to EUR 20 million.
Discontinued operations
No discontinued operations were reported during the review period.
In July 2013, Suominen sold its Codi Wipes business unit, focused on wet wipes
manufacturing. Due to the divestment, Codi Wipes business unit has been
reported in discontinued operations as of and including the Interim report for
January-June 2013. In the previous financial reports, Codi Wipes was reported
as part of Suominen's Wiping segment.
Suominen reported a non-recurring loss of EUR 18.3 million in the full year
2013 result in its discontinued operations. The profit after taxes from
discontinued operations was EUR -18.7 million (-6.6) in January-December.
FINANCING
The Group's interest-bearing net liabilities amounted to EUR 79.1 million
(100.6) at the end of the review period. In accordance with the company's
financing agreements, the net debt to EBITDA ratio was not to exceed 3.4 and
the gearing ratio not to exceed 125% in the end of the first quarter. At the
end of the first quarter, on 31 March 2014, the net debt to EBITDA was 2.2 and
the gearing ratio 79.3%.
In January-March, net financial expenses were EUR 1.8 million (2.3), or 1.5%
(2.0%) of net sales. A total of EUR 8.9 million of working capital was tied up
(tied up 8.4). Trade receivables amounting to EUR 9.3 million (13.6) were sold
to the bank. The equity ratio was 37.6% (34.7%). Cash flow from operations was
EUR -0.4 million (-2.1), representing a cash flow of EUR 0.00 per share
(-0.01).
CAPITAL EXPENDITURE
The gross investments totaled EUR 2.0 million (0.7). Planned depreciation
amounted to EUR 4.4 million (4.1). Nonwovens segment accounted for EUR 0.7
million (0.1), Flexibles segment for EUR 0.1 million (0.4) and the parent
company for EUR 1.2 million (0.1) of the total capital expenditure. Nonwovens
invested EUR 0.6 in capacity expansion of high value added nonwovens at the
Windsor Locks plant in the United States. Flexibles started during the review
period the investment in the automatization of the Tampere plant. In the parent
company, the investments were attributable to acquisition of intangible assets.
Other investments were in maintenance. In the comparison period, the
investments of the discontinued operations, Codi Wipes business unit, were EUR
0.1 million and were all for maintenance.
NET SALES AND FINANCIAL RESULT IN SEGMENTS
Nonwovens segment
The Nonwovens segment consists of two business areas, Convenience and Care.
Convenience business area supplies nonwovens as roll goods for wiping products
and travel & catering applications. Care business area manufactures nonwovens
for hygiene products and medical applications. Until the end of the financial
year 2013, the segment was called Wiping. Until and including the interim
report for January-March 2013, the Codi Wipes business unit, focused on
converting nonwovens into wet wipes, was also reported in the Wiping segment.
The comparison data of the segment has been revised to present continuing
operations.
January-March 2014
Net sales of the Nonwovens segment remained at the level of the comparison
period, at EUR 98.4 million (97.2). Net sales of Convenience business area were
EUR 90.9 million and net sales of Care business area EUR 7.5 million. The
Nonwovens segment generated 86% of the Group net sales.
The main application areas for nonwoven materials supplied by Suominen were
baby wipes (accounting for 39% of the sales), personal care wipes (22%),
household wipes (20%), industrial wipes (11%), and hygiene and medical products
(8%). All wiping products belong to the Convenience business area and all
medical and hygiene products belong to the Care business area. The share of
products with higher added value grew in the portfolio. The share of baby wipes
continued to decline, while particularly the share of nonwovens for household
wipes increased from the corresponding period.
The segment's operating profit before non-recurring items was EUR 6.0 million
(4.4) and after them 6.2 million (4.4). The non-recurring items reported in the
review period were related to the close-down of the fiber production in the
Nakkila plant in 2012. If calculated with the average USD exchange rate of
January-March 2013, the operating profit of the segment before non-recurring
items would have been EUR 6.2 million (4.4) and after them 6.4 (4.4).
Demand for nonwovens materials continued favorable in North American market.
The continued fierce competition put pressure on the sales prices in Europe.
Operating profit increased from the comparison period since the composition of
the product portfolio developed in keeping with the company's strategy.
Further, the segment succeeded in its cost control.
The investment in capacity expansion of high value added nonwovens at the
Windsor Locks plant in the United States progressed as planned. The roughly
two-week installation shutdown for the new machinery will last until the end of
April, and the expanded capacity will be in full operation by the end of May.
The total value of the investment is approximately EUR 2.5 million. Suominen
increased its supply of flushable nonwovens also in Europe through expanding
its manufacturing co-operation with Ahlstrom Corporation's Ställdalen plant in
Sweden. Additionally, Suominen introduced a new nonwovens product for
hospitality businesses and, consequently, further reinforced the position of
the value adding products in its portfolio.
Flexibles segment
The Flexibles segment produces consumer packaging made of printed plastic films
for industry and trade, as well as security and system packaging, for example
for companies in the security business and for paper wholesalers.
January-March 2014
In January-March 2014, net sales of the Flexibles segment totaled EUR 15.8
million (14.4), showing an increase of 10% from the comparison period. The
Flexibles segment generated 14% of the Group net sales. The share of hygiene
and food packaging increased to 74% of the segment's net sales, while the sales
of retail packaging and security & system packaging declined from the
comparison period. The operating profit turned positive and amounted to EUR 0.4
million (0.0). The segment did not report any non-recurring items during the
review period.
Net sales of the Flexibles segment grew from the comparison period in all
product categories. The development of sales was particularly favorable in
Russia. Successful management of costs improved the operating profit. The
impacts of the rationalization measures taken in year-turn were not fully
visible in the segment's financial figures for the first quarter.
The investment in the automatization of the Tampere plant commenced during the
review period. The project, valued at some EUR 0.5 million, advanced according
to the plan.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
The registered number of Suominen's issued shares totals 247,934,122 shares,
equaling to a share capital of EUR 11,860,056.00.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 31 March 2014 was 5,262,376 shares, accounting for 2.1% of the share
capital and votes. The trading price varied between EUR 0.47 and EUR 0.54. The
closing trading price was EUR 0.50, giving the company a market capitalization
of EUR 123,004,878 on 31 March 2014.
Own shares
On 1 January 2014 and on 31 March 2014, Suominen Corporation held 1,924,367 of
its own shares.
Share-based incentive plan
On 31 March 2014, the target group for Suominen's share-based incentive plan
included seven employees. One employee left the program during the review
period. At the end of the financial period, the rewards to be paid on the basis
of the plan corresponded to a maximum value of roughly 2,550,000 Suominen
Corporation shares in total, including the portion to be paid in cash. The aim
of the plan is to align the objectives of shareholders and 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 covers 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 company shares and partly in cash.
Extraordinary General Meeting and hybrid bond
Suominen issued on 10 February 2014 a convertible hybrid bond of EUR 17,500,000
to finance the acquisition of the nonwovens business operations in Brazil. The
bond was oversubscribed. The bond consists of 175 bond notes, each having the
nominal value of EUR 100,000. The bond does not have a guarantee or other
collateral. The principal of the bond has a fixed annual interest of 5.95%
until 10 February 2018. After that date, the principal of the bond will have a
fixed annual interest of 6.95% until 10 February 2019. After that date, the
principal of the bond will have a fixed annual interest of 7.95%. The interest
accrued for the bond by 10 February 2018 will be capitalized to the principal
of the bond annually on 10 February. Thereafter and commencing on 10 May 2018,
the interest is payable in the discretion of the Board of Directors quarterly
on 10 February, 10 May, 10 August and 10 November. No interest shall be paid on
the capitalized interest until 10 February 2018. After that date, the
capitalized interest shall be a part of the actual principal of the bond and
annual interest shall be paid to the whole amount of the principal according to
the interest terms of the bond.
Suominen has the right to redeem the bond in whole or in part on 10 February
2018 or thereafter, on each interest payment date, at the nominal value of the
bond together with the accrued interest.
A bond note entitles the bondholder to convert the bond note and the potential
capitalized interest for shares in Suominen at the conversion rate of EUR 0.50
per share. The period for converting starts on 11 February 2014 and ends on 10
February 2018. The number of shares to be received through the conversion must
always be at least 200,000. The number of shares in Suominen may be increased
by no more than 43,330,000 on the basis of the conversion.
The conversion rate shall be recorded under the invested non-restricted equity
fund.
A precondition for issuing the hybrid bond was a resolution made by the
Extraordinary General Meeting (EGM) held on 31 January 2014, according to which
the Board of Directors of the company was authorized to decide on the granting
of stock options and other special rights entitling to shares referred to in
Chapter 10, Section 1 of the Companies Act. The special rights carry the right
to receive against payment new shares in the company or own shares held by the
company. A special right may also be granted to a creditor of the company on
the condition that the creditor´s receivables are used to set off against the
subscription price of shares. The maximum number of new shares that may be
subscribed and/or own shares held by the company that may be conveyed by virtue
of the special rights granted by the company is 43,333,000 shares in total.
The EGM authorized the Board of Directors of Suominen to decide on all terms
and conditions related to granting the special rights. The authorization is
valid until further notice, however no longer than five years from the date of
the authorization given by the general meeting. The authorizations did not
revoke any earlier decisions regarding granting of stock options and other
special rights entitling to shares.
Annual General Meeting
The Annual General Meeting (AGM) of Suominen Corporation was held on 26 March,
2014. The AGM decided that no dividend will be paid for the financial year
2013.
The AGM adopted the financial statements and the consolidated financial
statements for the financial year 2013 and discharged the members of the Board
of Directors and the President & CEO from liability.
The AGM confirmed the number of members of the Board of Directors to be five
(5). The AGM re-elected Mr Risto Anttonen, Mr Jorma Eloranta, Ms Suvi Hintsanen
and Mr Hannu Kasurinen as members of the Board of Directors, and Ms Jaana
Tuominen as a new member of the Board of Directors for the next term of office,
expiring at the end of the first Annual General Meeting of Shareholders
following their election. The remuneration of the members of the Board of
Directors was resolved to maintain unchanged. The resolutions were in
accordance with the proposals submitted by the Nomination Board of Suominen's
shareholders. 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, Authorized Public Accountant, as the principal
auditor of Suominen Corporation.
The AGM authorized the Board of Directors to decide on the repurchase of the
company's own shares and to decide on a share issue and issuance of special
rights entitling to shares referred to in Chapter 10, Section 1 of the
Companies Act.
Authorizations of the Board of Directors
The Annual General Meeting (AGM) held on 26 March 2014 authorized the Board of
Directors to repurchase a maximum of 3,000,000 of the company's own shares. The
authorization shall be valid until 30 June 2015.
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. New shares may be issued and/or company's own shares
held by the company or its group company may be conveyed at the maximum amount
of 25,000,000 shares in aggregate. 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 options and other special rights granted by the company is 25,000,000
shares in total which number is included in the maximum number stated earlier.
The authorizations revoke the authorizations decided by the AGM on 26 March
2013 regarding share issue and issuance of special rights entitling to shares,
but do not revoke the authorization decided by the Extraordinary General
Meeting on 31 January 2014 regarding granting of stock options and other
special rights entitling to shares. The authorizations shall be valid until 30
June 2017.
The portion of the remuneration of the members of the Board of Directors which
shall be paid in shares
The Annual General Meeting of Suominen Corporation held on 26 March 2014
resolved to keep the remuneration to the members of the Board of Directors
unchanged. In 2014, the Chairman will be paid an annual fee of EUR 50,000, Vice
Chairman of the Board an annual fee of EUR 37,500 and other Board members an
annual fee of EUR 28,000. Further, the members of the Board will receive a fee
of EUR 500 for each meeting held in the home country of respective member and a
fee of EUR 1,000 per each meeting held elsewhere than in the home country of
respective member. 60 % of the annual remuneration is paid in cash and 40 % in
Suominen Corporation's shares.
The number of shares forming the above-mentioned remuneration portion payable
in shares will be determined based on the share value in the stock exchange
trading maintained by NASDAQ OMX Helsinki Ltd, calculated as the trade volume
weighted average quotation of the share during the one month period immediately
following the date on which the interim report of January-March 2014 of the
company is published. The shares will be given out of the own shares held by
the company by the decision of the Board of Directors by 6 June 2014 at the
latest.
Permanent committees
After the Annual General Meeting held on 26 March 2014, Suominen Corporation's
Board of Directors decided in its constitutive meeting that the earlier
Remuneration Committee will be altered to Personnel and Remuneration Committee.
Jorma Eloranta was elected as Chairman and Risto Anttonen as a member of the
committee.
Hannu Kasurinen was elected as Chairman and Suvi Hintsanen and Jaana Tuominen
as members of the Audit Committee.
Notifications under Chapter 9, Section 10 of the Securities Market Act
During the review period, Suominen Corporation received the following
notifications referred to in Chapter 9, Section 5 of the Securities Market Act:
Oy Etra Invest Ab, business identity code 0672234-6 notified on 5 February 2014
about an agreement or other arrangement that, if realized, would result in the
crossing of the 5% notification threshold as referred to in the Chapter 9
Section 5 of the Securities Market Act and calculated from the total number of
shares and voting rights. The notification was made for Erkki Etola, Oy Etra
Invest Ab and Tiiviste-Group Oy (business identity code 0115121-4) together.
Erkki Etola has a controlling interest on Oy Etra Invest Ab and Tiiviste-Group
Oy.
Share of all shares and voting rights after crossing of the notification
threshold would be:
Oy Etra Invest Ab: number of shares 15,823,320 and share of all shares and
voting rights 5.43%
Erkki Etola: number of shares 4,016 and share of all shares and voting rights
0.00%
Tiiviste-Group Oy: number of shares 3,000,000 and share of all shares and
voting rights 1.03%
Oy Etra Invest Ab, Erkki Etola and Tiiviste-Group Oy in total: number of shares
18,827,336 and share of all shares and voting rights 6.46%
Ahlstrom Corporation (business identity code 1670043-1) notified on 5 February
2014 about an agreement or other arrangement that, if realized, would result in
the acquisition or disposal of shares or voting rights. According to the
notification, the ownership and the voting rights of Ahlstrom Corporation may
decrease so that the following thresholds will be crossed: 5%, 10%, 15%, 20% or
25%.
Ahlström Capital Oy (business identity code 1670034-3) and AC Invest Two B.V.
(registration code 51490943) notified on 5 February about an agreement or other
arrangement that, if realized, would result in the acquisition or disposal of
shares or voting rights. According to the notification, the ownership and the
voting rights may increase so that the following thresholds will be reached or
crossed: 5%, 10%, 15%, 20% or 25%.
Ahlstrom Corporation (business identity code 1670043-1) notified on 10 January
2014 about an agreement or other arrangement that, if realized, would result in
the acquisition or disposal of shares or voting rights. According to the
notification the ownership and the voting rights may increase or decrease so
that the following thresholds will be reached or crossed: 5%, 10%, 15%, 20%,
25% or 30%.
Ahlström Capital Oy (business identity code 1670034-3) and AC Invest Two B.V.
(registration code 51490943) notified on 10 January 2014 about an agreement or
other arrangement that, if realized, would result in the acquisition or
disposal of shares or voting rights. According to the notification the
ownership and the voting rights may increase so that the following thresholds
will be reached or crossed: 5%, 10%, 15%, 20%, 25% or 30%.
EVENTS AFTER THE REVIEW PERIOD
Suominen announced on 22 April 2014 that it has appointed Ms. Lynda A. Kelly,
B. Sc, Senior Vice President, Care business area and a member of the Corporate
Executive Team at Suominen Corporation, effective 12 May 2014. Lynda A. Kelly
has a long and wide-ranging experience in nonwovens business, especially in
hygiene, medical and wiping products. Ms. Kelly, a US citizen, will report to
Nina Kopola, President & CEO of Suominen Corporation.
BUSINESS RISKS AND UNCERTAINTIES
Due to the acquisition of the manufacturing plant in Brazil, the risks that are
characteristic to any developing region, including significant changes in
business environment or exchange rates, could have an impact on Suominen's
operations in Brazil.
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.
The continued positive development of Suominen's business operations in the
United States increases the relevance of the exchange rate risk related to USD
in the Group's total exchange risk position. Suominen hedges this foreign
exchange position in accordance with its hedging policy.
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 the supply 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, particularly 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. At
the end of 2014, Suominen's net debt to EBITDA ratio may not exceed 2.4 and the
company's gearing ratio must be less than 95%. In this financial statement
release, these key figures are 2.2 and 79.3%.
The sensitivity of Suominen's goodwill to changes in business conditions is
described in the notes to the financial statements 2013. Actual cash flows may
deviate from the forecasted future discounted cash flows, as the long economic
lifetime 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 2013.
BUSINESS ENVIRONMENT
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. Europe and North America are the main market regions for Suominen.
In the euro area, the consumer confidence index picked up in the end of the
quarter. The development of the general economic situation in Europe remains,
however, uncertain. In the United States, the positive sentiment prevailed also
during the first quarter of the year despite the slight volatility in the
consumer confidence index during the period.
Suominen assesses the trend in the 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 customers. Suominen estimates that in 2014, the
demand for its products will continue to grow at the pace of 2013.
OUTLOOK FOR 2014
Suominen repeats its estimate, disclosed on 10 February 2014, that its net
sales and operating profit excluding non-recurring items for the full year 2014
improve from year 2013.
In 2013, Suominen's net sales were EUR 433.1 million and reported operating
profit excluding non-recurring items was EUR 18.3 million (continuing
operations).
SUOMINEN GROUP CONSOLIDATED 1 JANUARY - 31 MARCH 2014
This interim report has been prepared according to the principles defined in
IAS 34 Interim Financial Reporting. The principles for preparing the interim
report are the same as those used for preparing the financial statements for
2013, and this interim report should be read parallel to the financial
statements for 2013. Changes to published accounting standards and
interpretations, together with the new accounting standards that came into
force on 1 January 2014, are presented in the financial statements for 2013.
The figures in this interim report have not been audited.
BALANCE SHEET EUR 1,000 31 Mar 31 Mar 31 Dec
2014 2013 2013
--------------------------------------------------------------------------------
Assets
Non-current assets
Goodwill 15,496 26,715 15,496
Intangible assets 12,826 12,101 12,025
Tangible assets 106,426 115,898 98,640
Available-for-sale financial assets 938 19 939
Held-to-maturity investments 467 449 451
Other non-current receivables 511 511
Deferred tax assets 7,313 6,273 5,778
--------------------------------------------------------------------------------
Non-current assets, total 143,976 161,455 133,838
Current assets
Inventories 36,174 40,333 31,908
Trade receivables 61,894 56,370 46,908
Loan receivables 59 131
Other current receivables 7,396 10,482 6,359
Income tax receivables 326 1,348 1,182
Cash at bank and in hand 15,227 13,801 18,585
--------------------------------------------------------------------------------
Current assets, total 121,076 122,334 105,073
Assets, total 265,052 283,789 238,911
Shareholders' equity and liabilities
Equity attributable to owners of the parent
company
Share capital 11,860 11,860 11,860
Share premium account 24,681 24,681 24,681
Invested non-restricted equity fund 97,123 97,054 97,123
Fair value and other reserves -1,089 -1,024 -1,042
Translation differences -2,168 852 3,022
Other shareholders' equity * -48,299 -34,826 -51,094
--------------------------------------------------------------------------------
Shareholders' equity 82,108 98,597 78,506
Hybrid bond 17,640
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity, total 99,748 98,597 78,506
Liabilities
Non-current liabilities
Deferred tax liabilities 7,179 5,706 7,183
Provisions 126 280 132
Other non-current liabilities * 1,857 1,304 1,125
Interest-bearing liabilities 70,388 90,808 70,399
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities, total 79,550 98,098 78,839
Current liabilities
Interest-bearing liabilities 24,060 23,571 24,071
Income tax liabilities 522 1,416 144
Trade payables and other current liabilities 61,172 62,107 57,351
--------------------------------------------------------------------------------
Current liabilities, total 85,754 87,094 81,567
Liabilities, total 165,304 185,192 160,405
Shareholders' equity and liabilities, total 265,052 283,789 238,911
STATEMENT OF INCOME
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/20
13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 114,170 111,670 433,123
Cost of goods sold -101,531 -100,256 -390,857
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross profit 12,639 11,412 42,266
Other operating income 895 859 2,721
Sales and marketing expenses -1,818 -1,926 -7,644
Research and development 682 -1,006 -3,487
Administration expenses -3,768 -4,243 -14,934
Other operating expenses -227 -136 -849
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit before non-recurring items 7,039 4,960 18,073
Non-recurring items -233 -868
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 6,806 4,960 17,205
Financial income and expenses -1,753 -2,281 -7,018
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before income taxes 5,053 2,679 10,187
Income taxes -2,161 -1,473 -7,650
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period, continuing operations 2,892 1,205 2,537
Discontinued operations -103 -342
Profit/loss for the period
Impairment loss recognized on the remeasurement to -18,314
fair value and cost to sell
--------------------------------------------------------------------------------
Profit/loss for the period, discontinued 0 -103 -18,656
operations
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 2,892 1,102 -16,119
Earnings/share, EUR 0.01 0.00 0.01
Continuing operations
Discontinued operations 0.00 -0.08
Total 0.01 0.00 -0.07
Diluted, total 0.01 0.00 -0.07
STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/2013
--------------------------------------------------------------------------------
-----------
Profit/loss for the period 2,892 1,102 -16,119
Other comprehensive income:
Items that may be reclassified subsequently to profit or
loss:
Currency translation differences on 848 1,474 -2,664
foreign operations
Fair value changes of cash flow hedges -58 303 353
Items related to discontinuing operations 355
Other reclassifications 14 -168 325
-----------
--------------------------------------------------------------------------------
Total 804 1,609 -1,631
Items that will not be reclassified subsequently to profit
or loss:
Actuarial gains and losses 18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 0 0 18
Income tax on other comprehensive income 18 -147 120
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total other comprehensive income 822 1,462 -1,493
Total comprehensive income for the period 3,714 2,564 -17,612
Total comprehensive income arises from:
Continuing operations 3,714 2,654 1,044
Discontinued operations -90 -18,656
--------------------------------------------------------------------------------
Total comprehensive income for the period 3,714 2,564 -17,612
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
a. Share capital
b. Share premium account
c. Invested non-restricted equity fund
d. Own shares
e. Translation differences
f. Fair value reserves
g. Other shareholders' equity
h. Shareholders' equity
i. Hybrid bond
j. Shareholders' equity total
EUR a. b. c. d. e. f. g. h. i.
j.
1,000
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Total 11,860 24,681 97,123 -43 -3,022 -999 -51,094 78,506
78,506
equit
y at
1 Jan
2014
Profit 2,892 2,892
2,892
/loss
for
the
perio
d
Other 854 -46 -4 804
804
compr
ehensi
ve
income
Share- 18 18
18
based
payme
nts
Convey
ance
of
own
share
s
Hybrid -112 -112 17,640
17,528
bond
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Total 11,860 24,681 97,123 -43 -2,168 -1,045 -48,299 82,108 17,640
99,748
equit
y at
31 Mar
2014
EUR a. b. c. d. e. f. g. h. i. j.
1,000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 -549 -1,209 -35,783 96,011 96,011
equity
at
1 Jan
2013
Profit/ 1,102 1,102 1,102
loss
for
the
period
Other 1,401 229 -168 1,462 1,462
compre
hensive
income
*
Share-b 22 22 22
ased
paymen
ts
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 852 -980 -34,827 98,597 98,597
equity
at
31 Mar
2013
EUR a. b. c. d. e. f. g. h. i.
j.
1,000
--------------------------------------------------------------------------------
--
--------------------------------------------------------------------------------
--
Total 11,860 24,681 97,054 -43 -549 -1,209 -35,783 96,011
96,011
equit
y at
1 Jan
2013
Profit -16,119 -16,119
-16,119
/loss
for
the
perio
d
Other -2,472 210 770 -1,493
-1,493
compr
ehensi
ve
income
Share- 38 38
38
based
payme
nts
Convey 69 69
69
ance
of
own
share
s
--------------------------------------------------------------------------------
--
--------------------------------------------------------------------------------
--
Total 11,860 24,681 97,123 -43 -3,021 -999 -51,094 78,506
78,506
equit
y at
31 Dec
2013
CASH FLOW STATEMENT
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operations
Operating profit 6,806 4,899 17,387
Total adjustments 4,340 4,667 9,234
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow before change in working capital 11,146 9,567 26,620
Change in working capital -8,856 -8,362 6,482
Financial items -1,534 -2,330 -6,216
Taxes paid -1,176 -966 -5,556
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from operations -421 -2,091 21,330
Investment payments
Investments in tangible and intangible assets -1,122 -841 -5,598
Business combinations -19,334
Proceeds from disposed business operations 3,441
Proceeds from disposal of fixed assets and other 31 48 785
proceeds
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investing activities -20,424 -793 -1,372
Financing
Repayments of non-current loans -14 -3,325 -21,042
Repayments of capital loans -920 -920
Hybrid bond 17,500
Change in current loans -6 -6,300 6,300
--------------------------------------------------------------------------------
Cash flow from financing 17,481 2,055 -15,662
Change in cash and cash equivalents * -3,364 -829 4,296
Cash and cash equivalents 18,585 14,301 14,301
Unrealized exchange rate differences 6 329 -13
Change in cash and cash equivalents -3,364 -829 4,296
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents 15,227 13,801 18,585
* Data from comparison period includes discontinued operations.
KEY FIGURES Q1/2014 Q1/2013 Q1-Q4/20
13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, change, % * 2.2 12.2 5.5
Gross profit, % ** 11.1 10.2 9.8
Operating profit, % ** 6.0 4.4 4.0
Financial income and expenses, % ** -1.5 -2.0 -1.6
Profit before income taxes, % ** 4.4 2.4 2.4
Profit for the period, % ** 2.5 1.0 -3.7
Earnings/share, EUR, continuing operations 0.01 0.00 0.01
Earnings/share, EUR, discontinued operations 0.00 -0.08
Earnings/share, EUR, Group 0.01 0.00 -0.07
Diluted earnings/share, EUR, total 0.01 0.00 -0.07
Equity/share, EUR 0.41 0.40 0.32
Cash flow from operations/share, EUR 0.00 -0.01 0.09
Return on equity (ROE), % -16.4 -10.1 -18.6
Return on invested capital (ROI), % 0.3 1.2 -0.7
Return on invested capital (ROI), %, continuing 10.4 4.6 9.6
operations
Equity ratio, % 37.6 34.7 32.9
Gearing, % 79.3 102.0 96.2
Gross investments, EUR 1,000 1,972 670 5,580
Depreciation, EUR 1,000 4,353 4,145 16,548
* Compared with the corresponding period of the
previous year.
** As of net sales.
Non-current interest-bearing liabilities 70,388 90,808 70,399
Current interest-bearing liabilities 24,059 23,571 24,071
Interest-bearing receivables including cash and cash -15,370 -14,071 -18,985
equivalents
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Interest-bearing net liabilities 79,077 100,308 75,485
BUSINESS COMBINATIONS
Suominen acquired the Brazilian unit of the Ahlstrom Home and Personal
-nonwovens business on 10 February 2014. The main parts of the Home and
Personal -nonwovens business was acquired in 2011, but due to the delays for
some licenses and authorizations the acquisition of the Brazilian business was
prolonged. Thanks to the acquisition, Suominen Nonwovens business has a better
coverage on the South American markets.
The balance sheet and the profit or loss of the Brazilian company were
consolidated to Suominen as from 1 February 2014.
The shares of the local company were acquired. The enterprise value was EUR
17.5 million. This consideration is a preliminary estimate and it will be
finalized along with the working capital items.
Consideration Fair value
-------------------------
Cash 19,643
Recognized amounts of identifiable assets acquired and liabilities Fair
assumed according to the initial calculations: values
1 000 e
--------------------------------------------------------------------------------
Property, plant and equipment 10,463
Intangible assets 20
Other non-current receivables 1,349
Inventories 3,195
Trade and other receivables 5,767
Cash 297
--------------------------------------------------------------------------------
Total assets 21,092
Financial liabilities 416
Other liabilities 1,033
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 1,449
--------------------------------------------------------------------------------
The identifiable net assets 19,643
The transaction costs of EUR 0.1 million are reported in the non-recurring
items.
The Group´s net sales would have been EUR 115.7 million and operating profit
EUR 7.4 million, if the transaction had been realized at the start of 2014 and
the costs in the end of 2013.
SEGMENT REPORTING
Nonwovens
EUR 1,000 Q1/2014 Q1/2013 Change % Q1-Q4/2013
--------------------------------------------------------------------------------
Net sales 98,356 97,233 1.2 373,760
Operating profit before non-recurring 5,951 4,402 35.2 17,654
items
% of net sales 6.1 4.5 4.7
Operating profit 6,171 4,402 40.2 17,411
% of net sales 6.3 4.5 4.7
Assets 190,645 184,162 163,363
Liabilities 51,375 47,757 44,342
Net assets 139,269 136,405 119,020
Investments 662 107 2,493
Depreciation 3,287 3,106 12,380
Average personnel 566 526 537
Flexibles
EUR 1,000 Q1/2014 Q1/2013 Change % Q1-Q4/2013
--------------------------------------------------------------------------------
Net sales 15,817 14,427 9.6 59,438
Operating profit before non-recurring 430 1 49,716.6 -2,233
items
% of net sales 2.7 0.0 -3.8
Operating profit 430 1 49,716.6 -2,620
% of net sales 2.7 0.0 -4.4
Assets 34,200 37,058 35,859
Liabilities 9,321 10,037 9,115
Net assets 24,879 27,021 26,744
Investments 103 437 1,167
Depreciation 650 672 2,653
Average personnel 469 459 487
Non-allocated items
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/2013
-------------------------------------------------------------------------
Net sales -4 11 -76
Operating profit before non-recurring items 658 558 2,651
Operating profit 205 558 2,412
Assets * 40,208 62,569 39,690
Liabilities * 104,608 127,398 106,949
Investments * 1,208 221 2,111
Depreciation * 416 899 2,608
Average personnel * 13 18 13
* Following the IFRS 5 standard the data for the comparison periods is not
restated but includes non-allocated items and discontinued operations.
NET SALES BY MARKET AREA
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/2013
-----------------------------------------------------
-----------------------------------------------------
Finland 6,089 5,652 23,740
Europe, other 42,515 46,194 175,926
North and South America 62,991 57,445 224,139
Other countries 2,575 2,379 9,318
-----------------------------------------------------
-----------------------------------------------------
Net sales, total 114,170 111,670 433,123
QUARTERLY FIGURES
EUR 1,000 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2013
-
Q1/2014
--------------------------------------------------------------------------------
Net sales
Nonwovens 93,129 93,522 89,877 98,356 374,884
Flexibles 14,571 15,117 15,323 15,817 60,828
Non-allocated items -9 -38 -40 -4 -91
--------------------------------------------------------------------------------
Net sales, total, from continuing 107,691 108,602 105,159 114,170 435,621
operations
Operating profit
Nonwovens 5,721 3,657 3,875 5,951 19,203
% of net sales 6.1 3.9 4.3 6.1 5.1
Flexibles -603 -897 -734 430 -1,804
% of net sales -4.1 -5.9 -4.8 2.7 -3.0
Non-allocated items -904 2,501 496 658 2,752
--------------------------------------------------------------------------------
Operating profit before 4,214 5,260 3,637 7,039 20,151
non-recurring items
% of net sales 3.9 4.8 3.5 6.2 4.6
Non-recurring items -868 -233 -1,101
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit, total 4,214 5,260 2,769 6,806 19,050
% of net sales 3.9 4.8 2.6 6.0 4.4
Net financial expenses -1,743 -1,642 -1,350 -1,753 -6,488
--------------------------------------------------------------------------------
Profit before income taxes 2,471 3,619 1,419 5,053 12,562
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 445 thousand, obligatory pension payments EUR 52
thousand, voluntary pension payments EUR 31 thousand and share-based payments
EUR 40 thousand.
Other related-party transactions
EUR 1,000 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------
--------------------------------------------------------------
Sales of goods and services 1,576 4,409 16,439
Purchases of goods and services 17,681 12,712 62,342
Trade and other receivables 651 1,367 1,396
Trade and other payables 1,965 1,477 2,073
Other related-party transactions are transactions with Ahlstrom Corporation and
its subsidiaries and associated companies.
CHANGES IN BORROWINGS
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/2013
--------------------------------------------------------------------------------
--------------------
Total borrowings on 1 January 94,471 111,518 111,518
Current loans from financial institutions on 1 24,071 20,571 20,571
January
Change in current loans from financial -11 3,000 3,500
institutions
--------------------------------------------------------------------------------
--------------------
Current loans from financial institutions on 31 24,060 23,571 24,071
March
Non-current loans on 1 January 70,399 90,027 90,027
Change in non-current loans -11 781 -19,628
--------------------------------------------------------------------------------
--------------------
Non-current loans on 31 March 70,388 90,808 70,399
Capital loans on 1 January 0 920 920
Change in capital loans -920 -920
--------------------------------------------------------------------------------
--------------------
Capital loans on 31 March 0 0 0
Total borrowings on 31 March 94,448 114,379 94,471
CHANGES IN FIXED ASSETS
Q1/2014 Q1/2013 Q1-Q4/2
013
EUR 1,000 Tangibl Intangi Tangibl Intangi Tangibl Intangi e ble e ble e ble
--------------------------------------------------------------------------------
-----------------
Book value at the 98,640 12,025 118,019 12,529 118,019 12,529
beginning of the period
Investments 762 1,211 630 134 3,662 1,004
Decreases -6 -18 -18
Discontinued operations -5,365 -115
Business combinations 10,463 20
Depreciation -3,928 -425 -4,278 -704 -15,000 -1,545
Translation differences 494 -5 1,544 142 -2,658 152
and other changes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Book value at the end of 106,426 12,826 115,898 12,101 98,640 12,025
the period
CONTINGENT LIABILITIES
EUR 1,000 Q1/2014 Q1/2013 Q1-Q4/2013
-----------------------------------------------------------------------
-----------
For own debt
Secured loans 91,354 110,839 91,345
Nominal values of pledges
Real estate mortgages 27,045 27,044 27,042
Floating charges 161,742 198,339 165,761
Pledged subsidiary shares and loans 184,901 212,733 189,699
Other own commitments
Operating leases, real estates 22,368 26,527 22,672
Operating leases, machinery and equipment 2,241 3,086 2,373
Guarantee commitments 1,199
FINANCIAL ASSETS BY CATEGORY
a. Financial assets at fair value through profit or loss
b. Held-to-maturity investments
c. Loans and receivables
d. Available-for-sale financial assets
e. Book value
f. Fair value
Classes by instruments' nature
EUR 1,000 a. b. c. d. e. f.
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Available-for-sale financial assets 938 938 938
Held-to-maturity investments 467 467 467
Other non-current receivables 511 511 511
Loan receivables 59 59 59
Trade receivables 61,894 61,894 61,894
Other current receivables 37 56 93 93
Cash and cash equivalents 15,227 15,227 15,227
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Total at 31 Mar 2014 549 467 77,237 938 79,190 79,190
Classes by instruments' nature
EUR 1,000 a. b. c. d. e. f.
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Available-for-sale financial assets 939 939 939
Held-to-maturity investments 451 451 451
Other non-current receivables 511 511 511
Loan receivables 131 131 131
Trade receivables 46,908 46,908 46,908
Other current receivables 58 371 429 429
Cash and cash equivalents 18,585 18,585 18,585
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Total at 31 Dec 2013 569 451 65,996 939 67,954 67,954
Principles in estimating fair value for financial assets for 2014 are the same
as those used for preparing the financial statements for 2013.
FINANCIAL LIABILITIES
31 Mar 2014 31 Dec 2013
EUR 1,000 Book Fair Book Fair
value value value value
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Non-current
Loans from financial institutions 69,817 69,174 69,828 69,144
Pension loans 571 576 571 577
Other non-current liablities 710 710
-----------------------------------------------------------------------------
Total 71,098 70,460 70,399 69,721
Current *)
Repayment of non-current liabilities
Loans from financial institutions 23,488 23,419 23,500 23,412
Pension loans 571 584 571 594
Financial leasing 73 73
Derivatives not held for hedge accounting 14 14 94 94
Derivatives held for hedge accounting 1,394 1,394 1,354 1,354
Other current liabilities 354 354
Trade payables 49,713 49,713 45,016 45,016
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Total 75,608 75,551 70,535 70,470
Total 146,706 146,011 140,934 140,192
*) In the balance sheet under current liabilities.
Principles in estimating fair value for financial liabilities for 2014 are the
same as those used for preparing the financial statements for 2013.
FAIR VALUE MEASUREMENT HIERARCHY
EUR 1,000 Level 1 Level 2 Level 3
-------------------------------------------------------------
-------------------------------------------------------------
Assets measured at fair value
Assets held for sale 938
-------------------------------------------------------------
-------------------------------------------------------------
Total
Derivatives measured at fair value
Currency derivatives 24
Interest rate derivatives -893
Electricity derivatives -501
-------------------------------------------------------------
-------------------------------------------------------------
Total -1,370
Principles in estimating fair value for financial assets and their hierarchies
for 2014 are the same as those used for preparing the financial statements for
2013.
ANALYST AND PRESS CONFERENCE
Nina Kopola, President and CEO, and Tapio Engström, CFO, will present
Suominen's January-March 2014 financial result in Finnish at an analyst and
press conference in Helsinki today, on Tuesday 29 April 2014 at 10.00am (EEST).
The conference will take place at Event Arena Bank, Unioninkatu 20, Helsinki.
The name of the meeting room will be displayed on the board in the lobby. The
presentation material will be available after the analyst and press conference
at www.suominen.fi.
NEXT INTERIM REPORT
Suominen Corporation will publish its Interim report for January-June 2014 on
Friday, 18 July 2014.
Helsinki, 29 April 2014
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Nina Kopola, President & CEO, tel. +358 (0)10 214 300
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 and
flexible packaging for use in consumer products worldwide. Suominen is the
global market leader in nonwovens for wipes. The company employs more than
1,000 people in Europe and in the Americas. Suominen's net sales in 2013
amounted to MEUR 433.1 and reported operating profit excluding non-recurring
items was MEUR 18.3 (continuing operations). The Suominen share (SUY1V) is
listed in NASDAQ OMX Helsinki Stock Exchange. Read more at www.suominen.fi.
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