2013-10-23 07:30:00 CEST
2013-10-23 07:30:04 CEST
REGULATED INFORMATION
Suominen Oyj - Interim report (Q1 and Q3)
Suominen Corporation’s Interim report for January 1 – September 30, 2013: Net sales and operating profit from continuing operations better than in the comparison period
Helsinki, Finland, 2013-10-23 07:30 CEST (GLOBE NEWSWIRE) -- Suominen
Corporation Interim Report 23 October 2013 at 8:30am (EEST)
KEY FIGURES 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
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Net sales, EUR million, 108.6 110.5 328.0 312.2 410.4
continuing operations
Operating profit before 5.3 6.7 14.6 11.3 12.9
non-recurring items, EUR million, continuing
operations
Operating profit, EUR million, continuing 5.3 6.2 14.6 8.6 7.4
operations
Profit/loss for the period, 1.7 2.3 3.4 -1.0 -5.2
EUR million, continuing operations
Profit/loss for the period, EUR million, -1.5 0.0 -18.5 0.3 -6.6
discontinued operations
Profit/loss for the period, 0.3 2.3 -15.2 -0.7 -11.9
EUR million, total
Earnings/share, EUR, 0.01 0.01 0.01 0.00 -0.02
continuing operations
Earnings/share, EUR, -0.01 0.00 -0.08 0.00 -0.03
discontinued operations
Earnings/share, EUR, total -0.00 0.01 -0.06 0.00 -0.05
Cash flow from operations/share, 0.02 0.03 0.02 0.05 0.10
EUR *
Return on invested capital (ROI), % * -5.8 3.1 -5.8 3.1 0.4
Gearing, % * 112.5 99.4 112.5 99.4 101.0
* Including discontinued operations.
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 2012 unless otherwise stated. In accordance with IFRS
5, the comparison data of the balance sheets have not been revised and,
consequently, include both non-allocated items and discontinued operations.
Highlights in July - September 2013:
-Net sales from the continuing operations declined by 2% and amounted to EUR
108.6 million (110.5)
-Operating profit excluding non-recurring items from the continuing operations
decreased by 15% to EUR 5.3 million (6.7)
-The divestment of Codi Wipes business unit was closed on 15 July 2013. In this
interim report, Codi Wipes is reported in discontinued operations.
- Suominen decided to renew its corporate structure, organization and
management system as of 1 January 2014.
- Suominen repeats its previous estimate, announced on 17 July 2013, according
to which Suominen expects its net sales of the continuing operations for the
full year 2013 to remain at or slightly exceed the level of 2012. Operating
profit excluding non-recurring items is expected to improve from year 2012. In
2012, Suominen's net sales from continuing operations were EUR 410.4 million.
Group operating profit excluding non-recurring items, as reported in the
Financial Statements of 2012, was EUR 13.7 million
Nina Kopola, President and CEO, commenting on Suominen's third quarter:
“According to the Consumer Confidence Index, consumers' confidence in their
personal finances continued to strengthen in Europe during the third quarter.
The sustained increase in the Consumer Confidence Index seen in the U.S. in the
first half of the year leveled off, and the index began to show a slight
decline towards the end of the third quarter.
Although both net sales and operating profit fell short of the strong level of
the comparison period in the third quarter, Suominen's business development for
the January-September reporting period on the whole has been positive and in
line with our plans.
Net sales from the Group's continuing operations were EUR 108.6 million in the
third quarter, and operating profit excluding non-recurring items amounted to
EUR 5.3 million. In the Wiping segment, net sales from continuing operations
declined 4% from the strong level of the comparison period and were EUR 93.5
million (97.9). The segment's operating profit, excluding non-recurring items,
was EUR 3.7 million (8.1), which corresponded to 4.0% of net sales. Exceptional
costs, which were recognized during the third quarter, arising from challenges
related to customer deliveries, as well as from adjustments to Group charges,
weakened the operating profit of the Wiping segment. Operating profit of the
comparison period was also boosted by an exceptionally favorable product mix.
Net sales of the Flexibles segment grew 19%, despite a tough competitive
environment, and totaled EUR 15.1 million. The segment's operating profit
excluding non-recurring items weakened, however, from the comparison period,
and remained negative. We are looking into the possibilities of intensifying
the business recovery program of the Flexibles segment.
We continued with our steadfast work to implement our In the Lead strategy. The
divestment of the Codi Wipes unit was closed in July. The transaction
reinforced our position as the leading nonwovens manufacturer in the wiping
products value chain, and we can now, in keeping with our strategy, focus on
strengthening this position with even greater intensity.
With the renewal of our corporate structure, our organization, our management
system, and our operating model from 1 January 2014, we will be creating new
prerequisites for quicker execution of our strategy than before. With these
renewals, Suominen will become an even more focused and agile company. Our
ability to create new business and develop products with increased added value
will also be strengthened. In this way, we will accelerate both our own and our
customers' business and can improve Suominen's profitability.
Suominen's current Nonwovens business unit will be divided into two new
business areas as of 1 January 2014. The Convenience business area will focus
on serving customers that manufacture wiping products and travel and catering
products. The Care business area will serve customers that manufacture
healthcare and hygiene products. The strategy of the Flexibles has also been
sharpened and its operations have been reorganized in order to improve and
bolster customer service. In the future, Flexibles will concentrate on four
businesses: bread packaging, tissue wrapping, retail carrier bags and special
products.
The strategic development programs in the nonwovens business which were started
earlier this year continued in the third quarter as planned. The objectives of
the programs are to harmonize and boost the efficiency of our supply chain
processes and to further improve our product development.”
GROUP NET SALES AND FINANCIAL RESULT (CONTINUING OPERATIONS)
July-September 2013
In the third quarter of 2013, Suominen's net sales from continuing operations
reduced by 2% from the comparison period and amounted to EUR 108.6 million
(110.5). Operating profit before non-recurring items from continuing operations
was EUR 5.3 million (6.7) and after them EUR 5.3 million (6.2). Suominen did
not report any non-recurring items during the reporting period. Profit before
taxes from continuing operations was EUR 3.6 million (3.3) and profit after
taxes EUR 1.7 million (2.3).
The demand for nonwovens materials continued favorable in North American
market. The continued fierce competition in Europe put pressure on the sales
prices. The net sales of the Flexibles segment increased by nearly one fifth in
a very tight competitive environment. The segment's operating profit remained
negative also in the third quarter.
Cash flow from operations in July-September normalized and amounted to EUR 4.3
million (7.8).
January-September 2013
In January-September, Suominen's net sales from continuing operations grew by
5% from the comparison period to EUR 328.0 million (312.2). Operating profit
before non-recurring items from continuing operations was EUR 14.6 million
(11.3) and after them EUR 14.6 million (8.6). Suominen did not report any
non-recurring items during the reporting period. Profit before taxes from
continuing operations was EUR 8.8 million (0.5) and profit after taxes EUR 3.4
million (-1.0).
Cash flow from operations was EUR 5.0 million (13.2) in January - September. As
of the beginning of the year, EUR 7.1 million (3.2) in working capital has been
tied up. The increase in the tied working capital reflects the growth in sales.
Capital expenditure was kept at a low level.
DIVESTMENT OF CODI WIPES BUSINESS UNIT AND REPORTING IN DISCONTINUED OPERATIONS
In June 2013, Suominen agreed to sell its Codi Wipes business unit, focused on
wet wipes manufacturing, to Value Enhancement Partners investment company. The
deal was closed on 15 July 2013. 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 2013. In the previous financial reports,
Codi Wiped was reported as part of Suominen's Wiping segment.
Due to the divestment, Suominen recognized a non-recurring loss of EUR 16.8
million in the second quarter and a non-recurring loss of EUR 1.5 million in
the third quarter result in its discontinued operations. The profit after taxes
from discontinued operations was EUR -1.5 million (-0.0) in July-September, and
EUR -18.5 million (0.3) in January-September.
GROUP RESULT (INCLUDING DISCONTINUED OPERATIONS)
The Group result in July-September including the discontinued operations was
EUR 0.3 million (2.3).
The Group result in January-September including the discontinued operations was
EUR -15.2 million (-0.7).
COMPLETION OF THE HOME AND PERSONAL BUSINESS ACQUISITION
The acquisition of the Brazilian unit belonging to the Home and Personal
business operations acquired from Ahlstrom at the end of 2011 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 89.8 million
(107.5) 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 4.1 and
the gearing ratio not to exceed 135% in the end of the third quarter. At the
end of the third quarter, on 30 September 2013, the net debt to EBITDA was 2.6
and the gearing ratio 112.5%.
In January-September, net financial expenses were EUR 5.8 million (8.1), or
1.8% (2.6%) of net sales. A total of EUR 7.1 million was tied up in working
capital (3.2). Trade receivables amounting to EUR 8.8 million (16.0) were sold
to the bank. The equity ratio was 33.1% (35.8%). Cash flow from operations was
EUR 5.0 million (13.2), representing a cash flow of EUR 0.02 per share (0.05).
CAPITAL EXPENDITURE
The gross investments of the continued operations totaled EUR 2.4 million
(1.2). Planned depreciation amounted to EUR 12.5 million (13.2). Wiping segment
accounted for EUR 0.7 million (0.8), Flexibles segment for EUR 1.0 million
(0.2) and the parent company for EUR 0.7 million (0.6) of the total capital
expenditure. The investments in Wiping segment were in maintenance. The capital
expenditure of discontinued operations, i.e. Codi Wipes business unit, amounted
to EUR 0.2 million (0.3) and were for maintenance.
NET SALES AND FINANCIAL RESULT IN SEGMENTS
Wiping segment (continuing operations)
The Wiping segment of Suominen consists of one business unit, Nonwovens. The
business unit supplies nonwovens as roll goods for wiping products and medical
applications. Until and including the Interim report for January-March 2013,
the Codi Wipes business unit, focused on converting nonwovens into wet wipes,
was reported in the Wiping segment.
July - September 2013
The net sales of the Wiping segment from continuing operations decreased by 4%
and totaled EUR 93.5 million (97.5) in July -September 2013. The Wiping segment
generated 86% of the Group net sales. The operating profit of the segment from
the continuing operations before non-recurring items was EUR 3.7 million (8.1)
and after them 3.7 (7.1). The segment did not report any non-recurring items
during the reporting period. If calculated with the average USD exchange rate
of July-September 2012, the operating profit of the segment from the continuing
operations before non-recurring items would have been EUR 4.0 million (8.1) and
after them 4.0 (7.1).
Demand for nonwovens materials continued favorable in North American market.
The continued fierce competition put pressure on the sales prices in Europe.
Exceptional cost items, which were recognized during the third quarter, arising
from challenges related to customer deliveries, as well as from adjustments to
Group charges, weakened the operating profit of the Wiping segment. Operating
profit of the comparison period was also boosted by an exceptionally favorable
product mix.
The investment in capacity expansion of high value added nonwovens at the
Windsor Locks plant in the United States was started in the end of the
reporting period. The value of the investment is approximately EUR 2.5 million
and it will increase Suominen's production capacity, particularly in the
growing segment of flushable products. The investment decision was made and
announced in June 2013.
January-September 2013
The net sales of the Wiping segment from continuing operations grew by 4% to
EUR 283.9 million (273.0). The main application areas for nonwoven materials
were distributed to baby wipes (accounting for 41% of the sales), personal care
wipes (22%), household wipes (18%), and industrial wipes (12%). The share of
baby wipes declined, while the share of wipes for personal care increased from
the corresponding period. The operating profit of the segment from the
continuing operations before non-recurring items was EUR 13.9 million (15.3)
and after them 13.9 (12.1). The segment did not report any non-recurring items
during the reporting period.
Flexibles segment
The Flexibles segment produces printed plastic film materials for consumer
packaging for industry and trade, as well as security and system packaging, for
example for companies in the security business and for paper wholesalers.
July-September 2013
In July-September 2013, net sales of the Flexibles segment totaled EUR 15.1
million (12.7), showing an increase of 19% from the previous year. The
Flexibles segment generated 14% of the Group net sales. The segment's operating
profit was EUR -0.9 million (-0.6) excluding non-recurring items and EUR -0.9
million (-0.6) including them. The segment did not report any non-recurring
items during the reporting period.
The net sales of the Flexibles segment increased by nearly a fifth in a very
tight competitive environment. However, the operating profit remained negative
also in the third quarter. We are looking into the possibilities of
intensifying the business recovery program of the Flexibles segment.
January-September 2013
In January-September 2013, net sales of the Flexibles segment totaled EUR 44.1
million (39.3), showing an increase of 12% from the previous year. The share of
hygiene and food packaging increased to 73% of the segment's net sales, while
the sales of retail packaging and security & system packaging declined from the
comparison period. The operating profit during the first half of the year was
EUR -1.5 million (-2.0) before non-recurring items and EUR -1.5 million (-1.5)
after them. The segment did not report any non-recurring items during the
reporting period.
INFORMATION ON SHARES AND SHARE CAPITAL
Share capital
The registered number of Suominen's issued shares totals 247,934,122 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 26 March,
2013. The AGM decided that no dividend will be paid for the financial year
2012.
The AGM adopted the financial statements and the consolidated financial
statements for the financial year 2012 and discharged the members of the Board
of Directors and the President and 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, Mr Hannu Kasurinen and Mr Heikki Mairinoja as the members of the
Board of Directors for the next term of office, that expires at the end of the
first Annual General Meeting of Shareholders following their election. 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 resolved to amend the section 1 of the Articles of Association of the
company so that the domicile of the company is Helsinki. In addition, the AGM
decided that the second sentence regarding the venue of a General Meeting will
be deleted from section 10 of the Articles of Association.
The AGM resolved to establish a permanent Nomination Committee. The Nomination
Committee consists of the three largest shareholders or representatives of the
three largest shareholders of the company and the Chairman of the Board of
Directors 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.
Establishment of permanent committees
Suominen Corporation's Board of Directors decided on April to establish audit
and remuneration committees for the Board.
The main tasks of the Audit Committee relate to ensuring the company's good
governance, accounting and financial reporting, internal control systems and
monitoring of third-party auditing. The Audit Committee will prepare for the
Board matters that fall under its areas of responsibilities, but it does not
have independent decision-making powers unless the Board resolves otherwise on
certain matters. Suominen Corporation's Board of Directors elected Hannu
Kasurinen as Chairman and Suvi Hintsanen and Heikki Mairinoja as members of the
Audit Committee from among the Board's members. In future, the Chairman and
members of the committee will be elected annually at the Board's constitutive
meeting. At least three members will be elected to the committee. The members
of the Audit Committee must be independent of the company, and at least one
member must be independent of the company's significant shareholders. All
members of the Audit Committee are independent of the company and of its
significant shareholders.
The Remuneration Committee of Suominen Corporation's Board of Directors will
prepare the remuneration and appointment matters concerning the company's
President and CEO and other members of senior management, as well as principles
and procedures related to remuneration of the company's employees. The
Remuneration Committee will prepare for the Board matters that fall under its
areas of responsibilities, but it does not have independent decision-making
powers unless the Board resolves otherwise on individual matters. Suominen
Corporation's Board of Directors elected Jorma Eloranta as Chairman and Risto
Anttonen as member of the Remuneration Committee from among the Board's
members. In future, the Chairman and members of the committee will be elected
annually at the Board's constitutive meeting. The minimum number of committee
members is two, which deviates from recommendation 22 of the Finnish Corporate
Governance Code, which states that Board committees must have at least three
members. Suominen Corporation's Board of Directors states that, taking into
consideration the number of members of the Board and the scope and nature of
the company's business operations, the Remuneration Committee is able to
effectively handle the matters assigned to it with only two members. The
majority of the members of the Remuneration Committee must be independent of
the company. The President and CEO or a member of the company's or Group's
management may not be a member of the Remuneration Committee. Both members of
the Remuneration Committee are independent of the company and neither of them
belongs to the company's or Group's management.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 30 September 2013 was 7,920,048 shares, accounting for 3.2% of the
share capital and votes. The trading price varied between EUR 0.34 and EUR
0.61. The closing trading price was EUR 0.51, giving the company a market
capitalization of EUR 125,464,975 on 30 September 2013.
Own shares
On 1 January 2013, Suominen Corporation held 60,298 of its own shares. In
August 2013, Suominen issued 2,000,000 new shares to itself without
consideration. After the share issue, Suominen held in total 2 060 298 own
shares. On 11 September 2013, the portion of the remuneration of the Board of
Directors to be paid in shares, in total 135,931 shares, was delivered. On 30
September 2013, Suominen held 1,924,367 own shares, accounting for 0.8% of the
share capital and votes.
Stock options
Option right holders hold 100,000 of Suominen's 2009B stock options. During the
reporting period 100,000 2009B stock options were returned to the company. 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 247,934,122, the
number of shares may rise to a maximum of 248,034,122 after stock option
subscriptions.
Share-based rewards
On 30 September 2013, the target group of Suominen's share-based incentive plan
consisted of nine 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 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 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 2014. 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
authorization shall be valid until 30 June 2016.
The Board of Directors of Suominen Corporation has, based on the authorization
granted by the Annual General Meeting of Shareholders, resolved on the issuance
of 2,000,000 new shares to the company itself without consideration in
accordance with chapter 9, section 20 of the Companies Act. The new shares were
registered in the trade register on 15 August 2013, and were admitted to public
trading on the stock exchange list of NASDAQ OMX Helsinki Ltd on 16 August
2013. The purpose of the issue of shares to the company itself was to have own
shares held by the company available for the payment of the portion of the
annual remuneration of the Members of the Board of Directors, which shall be
paid in shares of the company, and for the payment of the share rewards
possibly payable based on the company's share based incentive plan. The share
rewards possibly payable based on the company's current share based incentive
plan for the years 2012 - 2014 will be paid in the year 2015.
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 2013
resolved on the following annual remuneration payable for the year 2013 to the
Members of the Board of Directors: Chairman 50,000 euro, Deputy Chairman 37,500
euro and Member 28,000 euro and that 40% of the annual remuneration shall be
paid in shares of Suominen Corporation.
The portion of the above-mentioned remuneration to be paid in shares was
delivered on 11 September 2013 by transferring own shares held by Suominen
Corporation without consideration. The Board of Directors of Suominen
Corporation has resolved on the delivery of the shares based on the share issue
authorization granted by the Annual General Meeting of Shareholders held on 26
March 2013. The shares to be transferred are of the same class as the company's
other shares. The number of shares formed by the above remuneration portion
which is payable in shares has been determined based on the share value in the
stock exchange trading maintained by NASDAQ OMX Helsinki Oy as follows: The
share value has been determined based on the trade volume weighted average
quotation of the share during the trading day immediately preceding the above
mentioned day on which the shares were delivered. Based on the above the annual
remuneration payable to the Members of the Board of Directors in shares for the
year 2013 is 135,931 shares in the aggregate.
CHANGES IN THE GROUP MANAGEMENT
The changes in Suominen's corporate structure, announced on 30 September 2013,
will have an impact also on the company's management model and on the
composition of the Corporate Executive Team (CET), whose primary task is to
support the President & CEO in her responsibilities. As of 1 January 2014, the
CET will include the following members:
Nina Kopola, President & CEO and Senior Vice President, Care (acting); Chairman
of the CET
Tapio Engström, Senior Vice President, CFO
Timo Hiekkaranta, Senior Vice President, Convenience; new member
Olli E. Juvonen, Senior Vice President, Flexibles
Larry Kinn, Senior Vice President, Operations North America*; new member
Mimoun Saim, Senior Vice President, Operations Europe* and Sourcing (acting);
new member
Hannu Sivula, Senior Vice President, Human Resources
Further, Suominen will establish a Corporate Leadership Team (CLT), which will
act as of 1 January 2014 as an extended management team supporting President
and CEO in the execution of strategic programs and creating functional
expertise. In addition to the members of the CET, the CLT will include the
following persons: Anu Heinonen, Vice President, Corporate Communications & IR;
Margareta Huldén, Vice President, R&D*; Roberto Pedoja, Vice President,
Technology*; Timo Rautakorpi, Vice President, CIO; Saara Söderberg, Vice
President, Marketing & Product Management*.
The members of the CLT will report to Nina Kopola, President & CEO. The members
marked with an asterisk (*) will focus on Convenience and Care business areas.
Jean-Marie Becker, Executive Vice President of Nonwovens business unit, will
step aside from the Corporate Executive Team as of 1 January 2014.
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.
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 2013, Suominen's net debt to EBITDA ratio may not exceed 3.6 and the
company's gearing ratio must be less than 125%. In this interim report, these
key figures are 2.6 and 112.5%.
The sensitivity of Suominen's goodwill to changes in business conditions is
described in the notes to the financial statements 2012. 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 2012.
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 European markets, the consumer confidence index continued to improve
slightly in the euro area. In North America, the increase seen in the consumer
confidence index during the first half of the year turned into a slight decline
in the end of the third quarter. The development prospects of the general
economic situation remain uncertain, especially in Europe.
Suominen assesses 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 in 2013, demand
for its products will remain at the level of 2012.
OUTLOOK FOR 2013
Suominen repeats its previous estimate, announced on 17 July 2013, according to
which Suominen expects its net sales of the continuing operations for the full
year 2013 to remain at or slightly exceed the level of 2012. Operating profit
excluding non-recurring items is expected to improve from year 2012. In 2012,
Suominen's net sales from continuing operations were EUR 410.4 million. Group
operating profit excluding non-recurring items, as reported in the Financial
Statements of 2012, was EUR 13.7 million
SUOMINEN GROUP CONSOLIDATED 1 JANUARY - 30 SEPTEMBER 2013
This interim report has been prepared in compliance with IAS 34 Interim
Financial Reporting. The principles for preparing the interim report are the
same as those used for preparing the financial statements for 2012, and this
interim report should be read parallel to the financial statements for 2012.
Changes to published accounting standards and interpretations, together with
the new accounting standards that came into force on 1 January 2013, are
presented in the financial statements for 2012.
All calculations in this interim report have been prepared in compliance with
the revised IAS 1 standard, ‘Presentation of Financial Statements'. This
standard is aimed at improving users' ability to analyze 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.
According to the revised IAS 19 standard ‘Employee Benefits', which came into
force on January 1, 2013, the corridor method is not applied to actuarial gains
and losses, and changes in actuarial gains and losses are recognized in other
comprehensive income. Net interest expenses are determined by multiplying the
net debt (or receivables) with the interest rate used in discounting, and the
difference between the real return on assets and the return calculated using
the interest rate used in discounting is recognized in other comprehensive
income. Previously unrecognized actuarial gains and losses are also recognized
in other comprehensive income. The same applies to other long-term employee
benefits, although changes in recognized items are recorded through profit or
loss. The process concerning termination benefits, particularly the date when
the entity recognizes its liability for termination benefits, is also defined
in more detail.
The IAS 19 standard is not expected to have a material impact on Suominen's
financial statements or operating result. The standard does, however, require
retroactive application for the financial statement figures of comparison
years. Thus, the net debt of the Group's defined benefit pensions and the
statement of comprehensive income from the 2012 comparison year has, as a
result of the elimination of the corridor approach to recognize actuarial gains
and losses, been changed to reflect the retroactive application. As a result of
the revision to IAS 19, the Group's pension liabilities increased from EUR 845
thousand to EUR 1,092 thousand as of the December 31, 2012 financial
statements, and actuarial losses of EUR 247 thousand for the comparison period
have been recognized in the other comprehensive income statement items of the
2012 comparison data.
The figures in this interim report have not been audited.
BALANCE SHEET EUR 1,000 30 Sep 30 Sep 31 Dec
2013 2012 2012
--------------------------------------------------------------------------------
Assets
Non-current assets
Goodwill 15,496 34,298 26,715
Intangible assets 11,486 12,717 12,529
Tangible assets 101,355 124,959 118,019
Available-for-sale financial assets 25 19 19
Held-to-maturity investments 450 456 466
Other non-current receivables 511
Deferred tax assets 6,105 3,941 6,067
--------------------------------------------------------------------------------
Non-current assets, total 135,428 176,390 163,816
Current assets
Inventories 34,691 40,343 42,431
Trade receivables 52,973 54,836 45,328
Other current receivables 7,373 10,284 11,772
Income tax receivables 1,260 4,023 1,293
Cash at bank and in hand 9,504 16,382 14,301
--------------------------------------------------------------------------------
Current assets, total 105,801 125,868 115,125
Assets, total 241,229 302,258 278,940
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 97,054 97,054 97,054
Fair value and other reserves -837 -1,066 -1,253
Translation differences -1,958 -34 -549
Other shareholders' equity * -51,048 -24,365 -35,782
--------------------------------------------------------------------------------
Shareholders' equity, total * 79,752 108,130 96,011
Liabilities
Non-current liabilities
Deferred tax liabilities 5,471 1,558 5,653
Provisions 605 280 280
Other non-current liabilities * 1,197 1,375 1,282
Interest-bearing liabilities 75,264 101,712 90,027
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities, total 82,537 104,925 97,242
Current liabilities
Interest-bearing liabilities 24,071 21,273 20,571
Capital loans 920 920
Income tax liabilities 1,500 4,975 737
Trade payables and other current liabilities 53,369 62,035 63,460
--------------------------------------------------------------------------------
Current liabilities, total 78,940 89,203 85,688
Liabilities, total 161,477 194,128 182,930
Shareholders' equity and liabilities, total 241,229 302,258 278,940
* Data from comparison period revised.
STATEMENT OF INCOME
EUR 1,000 7-9/20 7-9/20 1-9/20 1-9/20 1-12/2
13 12 13 12 012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 108,60 110,54 327,96 312,23 410,35
3 9 4 7 8
Cost of goods sold -98,08 -98,56 -295,0 -285,0 -376,2
7 8 57 34 69
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross profit 10,516 11,981 32,907 27,203 34,088
Other operating income 366 1,648 1,374 6,144 6,838
Sales and marketing expenses -1,755 -1,633 -5,348 -4,979 -6,878
Research and development -751 -679 -2,486 -1,868 -3,593
Administration expenses -2,915 -4,633 -11,16 -14,95 -16,94
3 1 5
Other operating expenses -151 -19 -701 -259 -568
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit before non-recurring 5,308 6,665 14,580 11,290 12,942
items
Non-recurring items -445 -2,661 -5,499
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 5,308 6,220 14,580 8,629 7,443
Financial income and expenses -1,689 -2,928 -5,812 -8,106 -10,47
4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before income taxes 3,618 3,292 8,768 523 -3,031
Income taxes -1,871 -1,026 -5,416 -1,514 -2,200
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period, continuing 1,747 -2,266 3,352 -991 -5,231
operations
Discontinued operations -28 -12 -339 309 637
Profit/loss for the period
Impairment loss recognized on the -1,436 -18,19 -7,278
remeasurement to fair value and cost to 6
sell
--------------------------------------------------------------------------------
Profit/loss for the period, discontinued -1,464 -12 -18,53 309 -6,641
operations 5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 283 -2,254 -15,18 -682 -11,87
3 2
Earnings/share, EUR 0.01 0.01 0,01 0.00 -0.02
Continuing operations
Discontinued operations -0.01 0.00 -0.08 0.00 -0.03
Total 0.00 0.01 -0.06 0.00 -0.05
STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 7-9/20 7-9/20 1-9/20 1-9/20 1-12/2
13 12 13 12 012
--------------------------------------------------------------------------------
Profit/loss for the period 283 2,254 -15,18 -682 -11,87
3 2
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss:
Currency translation differences on -1,423 -374 -1,592 36 -438
foreign operations
Fair value changes of cash flow hedges -140 -807 551 -760 -1,007
Other reclassifications 191 -21 -137 48 -6
--------------------------------------------------------------------------------
Total -1,373 -1,202 -1,178 -676 -1,451
Items that will not be reclassified
subsequently to profit or loss:
Actuarial gains and losses * 61 61 -247
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 61 61 -247
Income tax on other comprehensive income 171 -152 107 744 765
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total other comprehensive income -1,141 -1,354 -1,010 68 -933
Total comprehensive income for the -857 900 -16,19 -614 -12,80
period 3 5
Total comprehensive income arises from:
Continuing operations 607 912 2,342 -923 -6,164
Discontinued operations -1,464 -12 -18,53 309 -6,641
5
--------------------------------------------------------------------------------
Total comprehensive income for the -857 900 -16,19 -614 -12,80
period 3 5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* Data from comparison period revised.
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.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 -549 -1,210 -35,7 96,011
equity at 83
1 Jan 2013
Profit/loss -15,1 -15,18
for the 83 3
period
Other -1,409 416 -18 1,011
comprehens
ive
income
Share-based 3 3
payments
Conveyance -69 -69
of own
shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 -1,958 -793 -51,0 79,752
equity at 48
30 Sep 2013
EUR 1,000 a. b. c. d. e. f. g. h.
--------------------------------------------------------------------------------
--------------------
Total 11,860 24,861 97,054 -43 -637 -441 -23,737 108,737
equity at
1 Jan 2012
Profit/loss -682 -682
for the
period
Other 603 -583 48 68
comprehens
ive
income
Share-based 7 7
payments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 11,860 24,681 97,054 -43 -34 -1 024 -24,364 108,130
equity at
30 Sep 2012
EUR 1,000 a. b. c. d. e. f. g. h.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity at 11,860 24,681 97,054 -43 -637 -441 -23,73 108,73
1 Jan 2012 7 7
Profit/loss for the -11,87 -11,87
period 2 2
Other comprehensive 88 -769 -253 -934
income *
Share-based payments 79 79
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity at 11,860 24,681 97,054 -43 -549 -1,210 -35,78 96,011
31 Dec 2012 3
* Data from comparison period revised.
CASH FLOW STATEMENT
EUR 1,000 1-9/2013 1-9/2012 1-12/2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operations
Operating profit -4,024 9,118 947
Total adjustments 25,297 16,793 31,775
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow before change in working capital 21,272 25,911 32,722
Change in working capital -7,130 -3,229 4,961
Financial items -4,965 -6,735 -9,705
Taxes paid -4,143 -2,722 -3,040
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from operations 5,035 13,225 24,938
Investment payments
Investments in tangible and intangible assets -2,693 -2,273 -3,619
Proceeds from disposed business operations 3,441
Proceeds from disposal of fixed assets and other 60 2,106 2,115
proceeds
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investing activities 807 -167 -1,504
Financing
Non-current loans drawn 113
Repayments of non-current loans -16,848 -37,267 -38,713
Repayments of capital loans -920 -920 -920
Change in current loans 6,300 -10,550
--------------------------------------------------------------------------------
Cash flow from financing -11,355 -38,187 -50,183
Change in cash and cash equivalents * -5,513 -25,129 -26,749
Cash and cash equivalents 14,301 40,887 40,887
Unrealized exchange rate differences 715 624 164
Change in cash and cash equivalents -5,513 25,129 26,749
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents 9,504 16,383 14,301
* Includes discontinued operations.
KEY FIGURES 7-9/20 7-9/20 1-9/20 1-9/20 1-12/2
13 12 13 12 012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, change, % * -1.8 289.3 5.0 245.0 150.1
Gross profit, % ** 9.7 10.8 10.0 8.7 8.3
Operating profit, % ** 4.9 5.6 4.4 2.8 1.8
Financial income and expenses, % ** -1.6 -2.6 -1.8 -2.6 -2.6
Profit before income taxes, % ** 3.3 3.0 2.7 0.2 -0.7
Profit for the period, % ** 0.3 2.0 -4.6 -0.2 -2.9
Earnings/share, EUR, continuing 0.01 0.01 0.01 0.00 -0.02
operations
Earnings/share, EUR, discontinued -0.01 0.00 -0.08 0.00 -0.03
operations
Earnings/share, EUR, total 0.00 0.01 -0.06 0.01 -0.05
Equity/share, EUR 0.32 0.44 0.32 0.44 0.39
Cash flow from operations/share, EUR 0.02 0.03 0.02 0.05 0.10
Return on equity (ROE), % *** -28.5 -4.9 -28.5 -4.9 -11.2
Return on invested capital (ROI), % -5.8 3.1 -5.8 3.1 0.4
Equity ratio, % *** 33.1 35.8 33.1 35.8 34.4
Gearing, % *** 112.5 99.4 112.5 99.4 101.0
Gross investments, EUR 1,000, continuing 1,029 707 2,446 1,634 3,298
operations
Depreciation, EUR 1,000, continuing 4,139 4,434 12,451 13,245 17,518
operations
Impairment losses, EUR 1,000, continuing 2,700 5,538
operations
* Compared with the corresponding
period of the previous year.
** As of net sales.
*** Data from comparison period
revised.
Non-current interest-bearing liabilities 75,264 101,71 75,264 101,71 90,027
2 2
Current interest-bearing liabilities 24,071 22,193 24,071 22,193 21,491
Interest-bearing receivables, continuing -9,504 -16,38 -9,504 -16,38 -14,30
operations 2 2 1
--------------------------------------------------------------------------------
Interest-bearing net liabilities 89,831 107,52 89,831 107,52 97,217
3 3
DISCONTINUED OPERATIONS
EUR 1,000 1-9/20 1-9/20 1-12/20
13 12 12
--------------------------------------------------------------------------------
Net sales 24,278 37,556 49,436
Costs -24,73 -37,14 -55,868
6 0
--------------------------------------------------------------------------------
Profit before income taxes from discontinued operations -457 416 -6,432
Income taxes 119 -107 -209
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit after income taxes from discontinued operations -339 309 -6,641
Impairment loss recognized on the remeasurement to fair -18,19
value and cost to sell 6
--------------------------------------------------------------------------------
Profit/loss for the period from discontinued operations -18,53 309 -6,641
5
Cash flow from discontinued operations
Cash flow from operations -1,697 1,927 2,584
Cash flow from investing activities -297 -493 -758
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 1,994 1,434 1,826
The impact of the divestment of Codi Wipes on the Group financial position
Inventories 4,493
Trade receivables and other current receivables 2,968
Cash at bank and in hand 2,782
Other liabilities 358
Trade payables and other current liabilities 3,162
----------------------------------------------------------------
----------------------------------------------------------------
Net assets 6,723
Total consideration 6,723
Cash consideration 6,223
Cash equivalents held by discontinued operations -2,872
----------------------------------------------------------------
----------------------------------------------------------------
Net cash flow 3,441
SEGMENT REPORTING
Wiping (continuing operations)
EUR 1,000 1-9/2013 1-9/2012 Change % 1-12/2012
--------------------------------------------------------------------------------
Net sales 283,884 272,983 4.0 357,873
Operating profit before non-recurring 13,923 15,272 -8.8 18,014
items
% of net sales 4.9 5.6 5.0
Operating profit 13,923 12,127 14.8 12,031
% of net sales 4.9 4.4 3.4
Assets 173,516 195,411 180,256
Liabilities 45,310 51,525 47,176
Net assets 128,206 143,886 133,082
Investments 743 840 1,899
Depreciation 9,315 10,034 13,270
Impairment losses 2,700 5,538
Average personnel 527 594 594
Flexibles
EUR 1,000 1-9/2013 1-9/2012 Change % 1-12/2012
--------------------------------------------------------------------------------
Net sales 44,115 39,329 12.2 52,698
Operating profit before non-recurring -1,498 -1,968 23.9 -2,786
items
% of net sales -3.4 -5.0 -5.3
Operating profit -1,498 -1,484 -1.0 -2,302
% of net sales -3.4 -3.8 -4.4
Assets 36,058 37,068 35,668
Liabilities 9,375 8,122 8,634
Net assets 26,683 28,946 27,034
Investments 1,027 230 554
Depreciation 2,006 2,184 2,868
Average personnel 488 462 453
Non-allocated items
EUR 1,000 1-9/2013 1-9/2012 1-12/2012
--------------------------------------------------
Net sales -36 -75 -213
Operating profit 2,155 -2,014 -2,286
Assets * 31,655 69,799 63,015
Liabilities * 106,792 134,481 127,121
Investments * 867 1,126 1,555
Depreciation * 2,226 2,589 3,468
Impairment losses * 7,278
Average personnel * 17 170 173
* 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 1-9/2013 1-9/2012 1-12/2012
------------------------------------------------------
------------------------------------------------------
Finland 17,849 17,719 23,677
Europe, other 134,775 125,117 166,275
North and South America 168,971 161,463 210,249
Other countries 6,369 7,938 10,156
------------------------------------------------------
------------------------------------------------------
Net sales, total 327,964 312,237 410,458
QUARTERLY FIGURES
EUR 1 000 Q4/2012 Q1/2012 Q2/2013 Q3/2013 Q4/2012
-
Q3/2013
--------------------------------------------------------------------------------
Net sales
Wiping 84,890 97,233 93,129 93,522 368,773
Flexibles 13,369 14,427 14,571 15,117 57,484
Non-allocated items -138 11 -9 -38 -174
--------------------------------------------------------------------------------
Net sales, total, from continuing 98,121 111,670 107,691 108,603 426,083
operations
Operating profit
Wiping 2,741 4,458 5,762 3,703 16,664
% of net sales 3.2 4.6 6.2 4.0 4.5
Flexibles -818 1 -602 -897 -2,316
% of net sales -6.1 0.0 -4.1 -5.9 -4.0
Non-allocated items -272 544 -890 2,501 -1,884
--------------------------------------------------------------------------------
Operating profit before 1,652 5,003 4,270 5,308 16,232
non-recurring items
% of net sales 1.7 4.5 4.0 4.9 3.8
Non-recurring items -2,838 -2,838
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit, total -1,186 5,003 4,270 5,308 13,394
% of net sales -1.2 4.5 4.0 4.9 3.1
Net financial expenses -2,367 -2,338 -1,785 -1,689 -8,179
--------------------------------------------------------------------------------
Profit before income taxes -3,553 2,665 2,485 3,618 5,215
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 1,307 thousand, obligatory pension payments EUR 70
thousand, voluntary pension payments EUR 52 thousand and share-based payments
EUR 10 thousand.
Other related-party transactions
EUR 1,000 1-9/2013 1-9/2012 1-12/2012
--------------------------------------------------------------
--------------------------------------------------------------
Sales of goods and services 13,583 15,046 19,653
Purchases of goods and services 52,388 38,723 54,191
Trade and other receivables 1,587 1,502 1,049
Trade and other payables 1,383 2,626 2,165
Other related-party transactions are transactions with Ahlstrom Corporation and
its subsidiaries and associated companies.
CHANGES IN BORROWINGS
EUR 1,000 1-9/2013 1-9/2012 1-12/2012
--------------------------------------------------------------------------------
Total borrowings on 1 January 111,518 161,730 161,730
Current loans from financial institutions on 1 20,571 19,929 19,929
January
Change in current loans from financial 3,499 1,342 642
institutions
--------------------------------------------------------------------------------
Current loans from financial institutions on 30 24,071 21,271 20,571
Sep.
Non-current loans on 1 January 90,027 139,961 139,961
Change in non-current loans -14,763 -38,249 -49,934
--------------------------------------------------------------------------------
Non-current loans on 30 September 75,264 101,712 90,027
Capital loans on 1 January 920 1,840 1,840
Change in capital loans -920 920 -920
--------------------------------------------------------------------------------
Capital loans on 30 September 0 920 920
Total borrowings on 30 September 99,335 123,903 111,518
CHANGES IN FIXED ASSETS
1-9/2013 1-9/2012 1-12/201
2
EUR 1,000 Tangib Intangib Tangib Intangib Tangib Intangib
le le le le le le
--------------------------------------------------------------------------------
Book value at the 118,01 12,529 139,88 13,133 139,88 13,333
beginning of the period 9 6 6
Investments 1,773 673 1,666 530 3,261 747
Decreases -18 -1,377 -1,385
Discontinued operations -5,365 -115
Depreciation -11,29 -1,153 -13,65 -1,153 -23,60 -1,542
8 8 3
Translation differences -1,757 -448 -1,558 7 -140 -8
and other changes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Book value at the end of 101,35 11,486 124,95 12,717 118,01 12,529
the period 5 9 9
CONTINGENT LIABILITIES
EUR 1,000 1-9/2013 1-9/2012 12/2012
----------------------------------------------------------------------
For own debt
Secured loans 95,982 120,138 107,861
Nominal values of pledges
Real estate mortgages 27,039 27,045 27,045
Floating charges 173,201 204,008 193,988
Pledged subsidiary shares and loans 192,287 217,657 209,160
Other own commitments
Operating leases, real estates 21,768 30,693 27,177
Operating leases, machinery and equipment 2,495 3,072 2,705
Guarantee commitments 1,433 1,215 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. Derivatives held for hedge accounting
f. Book value
g. Fair value
Classes by instruments' nature
EUR 1,000 a. b. c. d. e. f. g.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Available-for-sale financial 25 25 25
assets
Held-to-maturity investments 450 450 450
Other non-current 511 511 511
receivables
Trade receivables 52,973 52,973 52,973
Other current receivables 15 294 309 309
Cash and cash equivalents 9,504 9,504 9,504
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total at 30 Sep 2013 526 450 62,771 25 63,772 63,772
Classes by instruments' nature
EUR 1,000 a. b. c. d. e. f. g.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Available-for-sale financial 19 19 19
assets
Held-to-maturity investments 466 466 466
Trade receivables 45,328 45,328 45,328
Other receivables 60 590 650 650
Cash and cash equivalents 14,301 14,301 14,301
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total at 31 Dec 2012 60 466 60,220 19 60,763 60,763
Principles in estimating fair value for financial assets for 2013 are the same
as those used for preparing the financial statements for 2012.
FINANCIAL LIABILITIES
30 Sep 2013 31 Dec 2012
EUR 1,000 Book Fair Book Fair
value value value value
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Non-current
Loans from financial institutions 74,380 74,364 88,884 88,901
Pension loans 857 867 1,143 1,185
Financial leasing 27 27
-----------------------------------------------------------------------------
Total 75,264 75,258 90,027 90,085
Current *)
Repayment of non-current liabilities
Loans from financial institutions 23,413 23,440 20,000 20,054
Pension loans 571 589 571 611
Capital loans 920 924
Financial leasing 86 86
Derivatives not held for hedge accounting 48 48 62 62
Derivatives held for hedge accounting 1,125 1,125 1,822 1,822
Trade payables 41,984 41,984 46,381 46,381
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Total 67,227 67,271 69,756 69,854
Total 142,491 142,529 159,783 159,939
*) In the balance sheet under current liabilities.
Principles in estimating fair value for financial liabilities for 2013 are the
same as those used for preparing the financial statements for 2012.
FAIR VALUE MEASUREMENT HIERARCHY
EUR 1,000 Level 1 Level 2 Level 3
-------------------------------------------------------------
-------------------------------------------------------------
Assets measured at fair value
Assets held for sale 25
-------------------------------------------------------------
-------------------------------------------------------------
Total
Derivatives measured at fair value
Currency derivatives -27
Interest rate derivatives -997
Electricity derivatives -83
-------------------------------------------------------------
-------------------------------------------------------------
Total -1,107
Principles in estimating fair value for financial assets and their hierarchies
for 2013 are the same as those used for preparing the financial statements for
2012.
ANALYST AND PRESS CONFERENCE
Nina Kopola, President and CEO, and Tapio Engström, CFO, will present the
financial result in Finnish at an analyst and press conference in Helsinki
today, on Wednesday, 23 October at 10.00 Finnish time. 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/financial_presentations.
NEXT INTERIM REPORT
Suominen will publish its Financial Statement Release for 2013 on January 30,
2014.
Helsinki, 23 October 2013
SUOMINEN CORPORATION
Board of Directors
For additional information, please contact:
Nina Kopola, President and 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 United States. Suominen's net sales in 2012
amounted to MEUR 410.4 and operating profit excluding non-recurring items was
MEUR 12.9 (continuing operations). The Suominen share (SUY1V) is listed in
NASDAQ OMX Helsinki Stock Exchange. Read more at www.suominen.fi.
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