Suominen (SUY1V) Investor update summary

Company Overview and Market Position

• Operates as a global leader in nonwoven materials, focusing on innovation, sustainability, and customized solutions, with 2025 net sales of €412.4 million and a 3% EBITDA margin.

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

• Manufacturing footprint spans seven production sites across the USA, Brazil, Spain, Italy, Finland, and main markets in EMEA and North America.

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

Strategic Context and Leadership

• New leadership team, including a recently appointed CEO and CFO, is driving operational and strategic changes.

• Renewed operating model and management structure implemented to support transformation.

Full Potential Program and Strategic Initiatives

• The Full Potential Program targets 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 fixed cost savings, commercial excellence, procurement optimization, and manufacturing efficiency via TPM methodology.

• Targeted investments focus on restoring equipment, expanding capacity in high-profit units, and improving raw material efficiency.

• Structural measures aim to reduce low-margin volumes, renegotiate contracts, and optimize fixed costs.

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