Suominen (SUY1V) investor relations material

Company Overview and Market Position

• Operates as a global leader in nonwoven materials, focusing on innovation and sustainability, with €412 million in 2025 revenue and a 3% EBITDA margin.

• Manufacturing footprint includes the USA, Brazil, Spain, Italy, and Finland, serving key markets in the Americas and EMEA.

• Holds a 27% share of new products in total sales, emphasizing R&D and co-development with customers.

• Faces resilient market growth driven by demographics, convenience, and hygiene trends, but also increased competition from low-cost countries.

Strategic Transformation and Full Potential Program

• Underwent management renewal and operating model change to support a transformation agenda focused on margin over volume.

• Launched the Full Potential Program targeting a 10% EBITDA margin and 2–3x leverage in Phase I, focusing on operational performance, targeted low-risk investments, and structural profitability measures.

• Operational improvements include a €10 million fixed cost savings program, commercial excellence initiatives, procurement optimization, and manufacturing efficiency via TPM methodology.

• Structural profitability measures include reducing low-profitability volumes and fixed costs.

• A new functional operating model emphasizes customer and factory focus to boost expertise and effectiveness.

Investment and Capital Structure Update

• Plans a fully underwritten rights issue to raise up to €28 million gross to strengthen the balance sheet and support the Full Potential Program.

• Main shareholders, representing 49–49.02% of shares, have committed to support and underwrite the offering.

• The offering is subject to EGM approval, scheduled for June 8, 2026, with the subscription period following in June–July, depending on market conditions.

• A two-year extension to the syndicated credit facility and relaxed financial covenants are contingent on the offering's completion.

• Current leverage stands at 7x EBITDA, with a mid-term target of 2–3x and potential to reach 1.5–2x.