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Suominen Corporation’s Interim Report for January 1–September 30, 2021: Q3 volumes low as expected, recovery already ongoing

Suominen Corporation Interim Report         October 28, 2021 at 9:30 a.m. (EET)

Suominen Corporation’s Interim Report for January 1–September 30, 2021:

Q3 volumes low as expected, recovery already ongoing

KEY FIGURES

 7-9/7-9/1-9/1-9/1-12/
 20212020202120202020
Net sales, EUR million98.7115.4327.6347.8458.9
Comparable EBITDA4.218.138.147.460.9
Comparable EBITDA, %4.315.711.613.613.3
EBITDA4.218.138.147.460.9
Operating profit, EUR million-0.812.923.131.039.5
Operating profit, %-0.911.27.08.98.6
Profit for the period, EUR million-1.710.918.222.830.1
Cash flow from operations, EUR million-8.920.18.239.157.0
Cash flow from operations per share, EUR-0.160.350.140.680.99
Earnings per share, basic, EUR-0.030.190.320.400.52
Return on invested capital, rolling 12 months, %11.813.816.7
Gearing, %30.229.925.4



In this interim report, figures shown in brackets refer to the comparison period last year if not otherwise stated.

July–September 2021 in brief:

- Net sales decreased 14.5% from the corresponding period of 2020 and were EUR 98.7 million (115.4)
- Comparable EBITDA decreased to EUR 4.2 million (18.1)
- Cash flow from operations declined and was EUR -8.9 million (20.1)

January–September 2021 in brief:

- Net sales decreased 5.8% and were EUR 327.6 million (347.8)
- Comparable EBITDA decreased to EUR 38.1 million (47.4)
- Cash flow from operations declined and was EUR 8.2 million (39.1)

Outlook for 2021

Suominen repeats its outlook for 2021 but in light of the volatility of the markets and Suominen’s results, gives further detail on the outlook.

Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets and will amount to EUR 47–53 million. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

Petri Helsky, President & CEO:

“Suominen’s net sales were EUR 98.7 million (115.4) in the third quarter of 2021. As expected, sales volumes decreased clearly from the comparison period due to the sudden deceleration of demand we discussed in Suominen’s previous interim report.

Our comparable EBITDA was EUR 4.2 million (18.1). The result was impacted especially by the lower sales and production volumes but also by higher raw material costs for which higher sales prices could compensate only partially. Cost savings actions supported the result to some extent.

Our earlier expectation was that the drop in demand would be temporary in nature. This indeed seems to be the case and the demand recovery has started already in late Q3, in some cases even quicker than previously assumed. We estimate that Suominen’s Q4 volumes will be slightly short of Q2/2021 but clearly above pre-COVID-19 levels. Also the global market expectation is that in the long run the end user demand for wipes will remain above pre-COVID-19 levels.

The investment project to upgrade and restart one of our existing production lines in Cressa was completed during the quarter slightly ahead of the original plan. This investment strengthens our capabilities in Europe and is made in line with our strategy aiming for growth. The two other ongoing investment projects, one in Italy and the other in the US, are proceeding as planned and will be finalized before the end of the year.

We have made strong progress towards our sustainability targets. As part of our continuous work to reduce our greenhouse gas (GHG) emissions we are shifting entirely to fossil-free electricity in all our European plants. In our product offering we are targeting to launch at least 10 sustainable products per year. In 2021 we are well ahead of the target as we have already launched 13 sustainable products by the end of Q3. Thirdly, we are also actively researching new sustainable fibers to be able to serve the needs of our customers even better. In Q3 we have conducted test runs for example with hemp and have received excellent feedback from our customers on the products.

For the second consecutive year we were recognized by Rockline, one of our major customers. We were granted their RRITE Supplier Award 2021, which is given to the supplier who exemplifies their values of renew, respect, integrity, teamwork and excellence. 

Our financial performance was disappointing in the third quarter, but we are pleased that the recovery is already ongoing. We will diligently continue to focus on serving our customers, running our operations safely and efficiently, and improving our result in Q4 and beyond.”

NET SALES

JulySeptember 2021

In July–September 2021, Suominen’s net sales decreased from the comparison period by 14.5% to EUR 98.7 million (115.4). Currencies impacted the net sales by EUR 0.7 million.

Suominen has two business areas, Americas and Europe. Net sales of the Americas business area amounted to EUR 57.0 million (71.9) and net sales of the Europe business area to EUR 41.6 million (43.5).

January–September 2021

In January–September 2021, Suominen’s net sales decreased from the comparison period by 5.8% and amounted to EUR 327.6 million (347.8). Currencies impacted the net sales by EUR -13.9 million.

Net sales of the Americas business area amounted to EUR 196.4 million (222.3) and net sales of the Europe business area to EUR 131.3 million (125.6).

EBITDA, OPERATING PROFIT AND RESULT

JulySeptember 2021

EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 4.2 million (18.1). Currency impact on EBITDA was EUR -0.2 million.

Operating profit decreased from the comparison period and amounted to EUR -0.8 million (12.9).

Profit before income taxes was EUR -1.8 million (11.1), and profit for the reporting period was EUR -1.7 million (10.9). Income taxes for the period were EUR 0.1 million (-0.3). The income taxes of the comparison period were positively impacted by recognition of additional deferred tax assets from previous years’ losses as the possibility to utilize the losses had increased.  

JanuarySeptember 2021

EBITDA (earnings before interest, taxes, depreciation and amortization) was EUR 38.1 million (47.4). Currency impact on EBITDA was EUR -1.9 million.

Operating profit decreased and was EUR 23.1 million (31.0).

Profit before income taxes was EUR 23.8 million (25.4), and profit for the reporting period was EUR 18.2 million (22.8).

Income taxes for the period were EUR -5.6 million (-2.6). The income taxes of the comparison period were positively impacted by the recognition of additional deferred tax assets from previous years’ losses as the possibility to utilize the losses had increased. The corporate income taxes of 2020 were also positively impacted by the US tax reliefs enacted as a result of the COVID-19 pandemic.

FINANCING

The Group’s net interest-bearing liabilities at nominal value amounted to EUR 48.2 million (43.1) at the end of the review period. The gearing ratio was 30.2% (29.9%) and the equity ratio 42.5% (46.0%).

In January–September, net financial expenses were EUR +0.7 million (-5.5), or +0.2% (-1.6%) of net sales. Fluctuations in exchange rates decreased the net financial expenses by EUR 1.2 million (in 2020, increased by EUR 1.6 million).

Suominen sold its minority share in Amerplast (Bright Maze Oy) in March. The transaction impacted Suominen’s net financial expenses positively by EUR 3.7 million. The amount consists of the gain on the sale of the shares as well as of the reversal of bad debt provisions recognized of the loan receivables. The effect on cash flow was EUR 11.6 million, consisting of the sales price of the shares and payment of the loan receivables and accrued interests.

Cash flow from operations in July–September was EUR -8.9 million (20.1) and in January–September EUR 8.2 million (39.1), representing a cash flow per share of EUR 0.14 (0.68). The decline in the cash flow from operations for January–September was driven by more cash being tied up in net working capital as well as the weaker result.

In the third quarter the change in net working capital was negative by EUR 11.4 million (+6.4). The change in net working capital in January-September was EUR -23.2 million (-2.3).

In May 2021, Suominen announced that it has extended by one year the maturity of the EUR 100 million syndicated revolving credit facility agreement signed in July 2020. The maturity of the facility is now extended to July 2024.

In June 2021, Suominen issued a senior unsecured bond of EUR 50 million. The six-year bond matures on June 11, 2027 and it carries a coupon interest of 1.5%. The offering was allocated to 19 investors. The bond is listed on the official list of Nasdaq Helsinki Ltd. The debenture bond issued in 2017 will fall due in October 2022.


CAPITAL EXPENDITURE

In January–September, the gross capital expenditure totaled EUR 14.0 million (4.9) and the largest items were related to the growth investment initiatives in Italy and at the Bethune plant in the USA. Other investments were mainly for maintenance. Depreciation and amortization for the review period amounted to EUR 15.0 million (16.4).

IMPACTS OF THE COVID-19 PANDEMIC ON SUOMINEN

The pandemic has increased the demand for our products in all our markets. Towards the end of the second quarter of 2021 the demand started to decelerate especially in North America, but the demand has started to recover in late Q3. In the long run the market and Suominen’s expectation is that demand will remain above pre-COVID-19 levels.

Suominen’s financial position has remained strong throughout the pandemic.

The risks related to COVID-19 are described in the short-term risk and uncertainties section.

PROGRESS IN SUSTAINABILITY

We progressed well with the actions defined in our sustainability agenda during the third quarter.

We have strong focus on safety and accident prevention, and our long-term target is to have zero lost-time accidents. In the third quarter of 2021, there was zero lost-time accidents (LTA) at Suominen sites (0 in Q3/2020). In total by end of September the amount of LTA’s is 3 (1 in Q1–Q3/2020).

Our employee engagement survey, Suominen Vibe, is a tool to systematically measure and develop engagement. This year’s survey is now ongoing.

We are committed to continuously improving our production efficiency and the efficient utilization of natural resources. We continued our active measures towards our targets to reduce energy consumption, greenhouse gas emissions, water consumption and waste to landfill by 20% per ton of product by 2025 compared to the base year of 2019. As part of our active work to reduce greenhouse gas (GHG) emissions, we are shifting entirely to fossil-free electricity in all our European plants.

We offer a comprehensive portfolio of sustainable nonwovens to our customers and we are continuously developing new and innovative solutions with a reduced environmental impact. Our target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. During the third quarter of the year, we launched four sustainable products. In 2021 we have launched 13 sustainable products in total.

A mandatory training program regarding our renewed Code of Conduct is ongoing and the target is that all Suominen employees will have completed the training by end of November.

Suominen reports progress in its key sustainability KPIs annually.

As part of our Annual Report 2020 published on March 3, 2021 we reported on the progress of our sustainability performance. Our sustainability reporting in 2020 is in accordance with the Core option of the GRI Standards by the Global Reporting Initiative.

INFORMATION ON SHARES AND SHARE CAPITAL

Share capital

The number of Suominen’s registered shares was 58,259,219 shares on September 30, 2021, equaling to a share capital of EUR 11,860,056.00.


Share trading and price

The number of Suominen Corporation shares traded on Nasdaq Helsinki from January 1 to September 30, 2021 was 15,570,116 shares, accounting for 27.0% of the average number of shares (excluding treasury shares). The highest price was EUR 6.41, the lowest EUR 4.37 and the volume-weighted average price EUR 5.57. The closing price at the end of review period was EUR 4.41. The market capitalization (excluding treasury shares) was EUR 254.1 million on September 30, 2021.

Treasury shares

On September 30, 2021, Suominen Corporation held 634,661 treasury shares.

As a share-based payment plan vested, in total 34,872 shares were transferred to the participants of the plan in February. In accordance with the decision made in the Annual General Meeting on March 25, 2021, 4,049 shares, which were still in the joint account, were transferred to Suominen Corporation’s treasury shares.

In accordance with the resolution by the Annual General Meeting, in total 16,042 shares were transferred to the members of the Board of Directors as their remuneration payable in shares during the reporting period.

In accordance with the matching share-based payment program, 9,352 shares were transferred to the participants of the program in September 2021.

The portion of the remuneration of the members of the Board of Directors which shall be paid in shares

The Annual General Meeting held on March 25, 2021 decided that the remuneration payable to the members of the Board remains unchanged. 60% of the annual remuneration is paid in cash and 40% in Suominen Corporation’s shares.

The number of shares forming the remuneration portion payable in shares was determined based on the share value in the stock exchange trading maintained by Nasdaq 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 2021 of the company was published. The shares were given out of the treasury shares held by the company by the decision of the Board of Directors on May 31, 2021.

Share-based incentive plans for the management and key employees

The Group management and key employees participate in the company’s share-based long-term incentive plans. The plans are described in more details in the Financial Statements and in the Remuneration Report, available on the company’s website www.suominen.fi.

Company's Performance Share Plan currently includes three 3-year performance periods, calendar years 2019–2021, 2020–2022 and 2021–2023. The aim of the Performance Share Plan is to combine the objectives of the shareholders and the persons participating in the plan in order to increase the value of the company in long-term, to build loyalty to the company and to offer them competitive reward plans based on earning and accumulating the company’s shares.

Performance Share Plan: Ongoing performance periods

Performance Period2019–20212020–20222021–2023
Incentive based onTotal Shareholder Return (TSR)Total Shareholder Return (TSR)Total Shareholder Return (TSR)
Potential reward paymentWill be paid partly in Suominen shares and partly in cash in spring 2022Will be paid partly in Suominen shares and partly in cash in spring 2023Will be paid partly in Suominen shares and partly in cash in spring 2024
Participants16 people17 people19 people
Maximum number of shares546,000756,500470,000


The President & CEO of the company must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. A member of the Executive Team must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. Such a number of shares must be held as long as the participant’s employment or service in a group company continues.

Matching Restricted Share Plan 20192021

Suominen also had a Matching Restricted Share Plan for selected key employees in the Suominen Group. The aim of the MRSP was to align the objectives of the shareholders and key employees in order to increase the value of the company in the long-term, to retain key employees at the company, and to offer them a competitive reward plan that is based on acquiring, receiving and accumulating the company’s shares.

The second vesting period of the Matching Restricted Share Plan ended in September 2021 and in total 9,352 shares were transferred to the participants.

ANNUAL GENERAL MEETING

The Annual General Meeting (AGM) of Suominen Corporation was held on March 25, 2021.

The AGM adopted the Financial Statements and the Consolidated Financial Statements for the financial year 2020 and discharged the members of the Board of Directors and the President & CEO from liability for the financial year 2020. The AGM approved the Remuneration Report for the governing bodies and the Board of Directors' proposals concerning forfeiture of the shares entered in a joint book-entry account and of the rights attached to such shares.

The AGM decided, in accordance with the proposal by the Board of Directors, that a dividend of EUR 0.10 and in addition, a return of capital of EUR 0.10 per share will be paid.

The AGM confirmed the remuneration of the Board of Directors remains unchanged. The Chair will be paid an annual fee of EUR 66,000 and the Deputy Chair and other Board members an annual fee of EUR 31,000. Chair of the Audit Committee will be paid an additional fee of EUR 10,000. Further, the members of the Board will receive a fee for each Board and Committee meeting as follows: EUR 500 for each meeting held in the home country of the respective member, EUR 1,000 for each meeting held elsewhere than in the home country of the respective member and EUR 500 for each meeting held as a telephone conference.

60% of the remuneration is paid in cash and 40% in Suominen Corporation’s shares. Compensation for expenses is paid in accordance with the company's valid travel policy.

The AGM decided that the number of Board members remains unchanged at six (6). Mr. Andreas Ahlström, Mr. Björn Borgman, Ms. Nina Linander, Ms. Sari Pajari-Sederholm and Ms. Laura Raitio were re-elected as members of the Board. Mr. Jaakko Eskola was elected as a new member of the Board.

Mr. Jaakko Eskola was elected as the new Chair of the Board of Directors.

Ernst & Young Oy, Authorised Public Accountant firm, was re-elected as the auditor of the company for the next term of office in accordance with the Articles of Association. Ernst & Young Oy appointed Mr. Toni Halonen, Authorised Public Accountant, as the principally responsible auditor of the company.

The AGM authorized the Board of Directors to decide on the repurchase of the company’s own shares and to resolve on the issuance of shares and granting of options and the issuance of special rights entitling to shares. The terms and conditions of the authorization are explained later in this interim report.

Suominen published a stock exchange release on March 25, 2021 concerning the resolutions of the Annual General Meeting and the organizing meeting of the Board of Directors. The stock exchange release and an introduction of the new Board members can be viewed on Suominen’s website at www.suominen.fi.

In compliance with the resolution of the Annual General Meeting, on April 8, 2021 Suominen paid out dividends and return of capital in total of EUR 11.5 million for 2020, corresponding to EUR 0.20 per share.

Organizing meeting and permanent committees of the Board of Directors

In its organizing meeting held after the AGM, the Board of Directors elected Andreas Ahlström as Deputy Chair of the Board.

The Board of Directors elected from among its members the members for the Audit Committee and Personnel and Remuneration Committee. Nina Linander was re-elected as the Chair of the Audit Committee and Andreas Ahlström and Laura Raitio were re-elected as members. Jaakko Eskola was elected as the Chair of the Personnel and Remuneration Committee and Björn Borgman and Sari Pajari-Sederholm were re-elected as members.

Authorizations of the Board of Directors

The Annual General Meeting (AGM) held on March 25, 2021 authorized the Board of Directors to decide on the repurchase a maximum of 400,000 of the company’s own shares. The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid in accordance with the rules of Nasdaq Helsinki Ltd and Euroclear Finland Ltd. The shares shall be repurchased to be used in company’s share-based incentive programs, in order to disburse the remuneration of the members of the Board of Directors, for use as consideration in acquisitions related to the company’s business, or to be held by the company, to be conveyed by other means or to be cancelled. The Board of Directors shall decide on other terms and conditions related to the repurchase of the company’s own shares. The repurchase authorization shall be valid until June 30, 2022 and it revokes all earlier authorizations to repurchase company’s own shares.

The Annual General Meeting (AGM) held on March 25, 2021 authorized the Board of Directors to decide on issuing new shares and/or conveying the company’s own shares held by the company and/or granting options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act. New shares may be issued, and the company’s own shares may be conveyed to the company’s shareholders in proportion to their current shareholdings in the company; or by waiving the shareholder’s pre-emption right, through a directed share issue if the company has a weighty financial reason to do so, such as, for example, using the shares as consideration in possible acquisitions or other arrangements related to the company’s business, as financing for investments, using shares as part of the company’s incentive program or using the shares for disbursing the portion of the Board members’ remuneration that is to be paid in shares. The new shares may also be issued without payment to the company itself. 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 5,000,000 shares in aggregate.

The Board of Directors may grant options and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act, which carry the right to receive against payment new shares or own shares held by the company. The right may also be granted to the company’s creditor in such a manner that the right is granted on condition that the creditor’s receivable is used to set off the subscription price (“Convertible Bond”). However, options and other special rights referred to in Chapter 10, Section 1 of the Companies Act cannot be granted as part of the company’s remuneration plan.

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 5,000,000 shares in total which number is included in the maximum number stated above.

The authorizations shall revoke all earlier authorizations regarding share issue and issuance of special rights entitling to shares. The Board of Directors shall decide on all other terms and conditions related to the authorizations. The authorizations shall be valid until June 30, 2022.

NOTIFICATIONS UNDER CHAPTER 9, SECTION 5 OF THE SECURITIES MARKET ACT

During the review period Suominen received no notifications under Chapter 9, Section 5 of the Securities Market Act.

NOMINATION BOARD

Suominen’s three largest registered shareholders Ahlstrom Capital B.V., Oy Etra Invest Ab and Nordea Nordic Small Cap Fund have nominated the following members to the Shareholders’ Nomination Board:  

  • Lasse Heinonen, President & CEO of Ahlström Capital Oy, as a member appointed by Ahlstrom Capital B.V.;
  • Mikael Etola, CEO, Etola-Yhtiöt, as a member appointed by Oy Etra Invest Ab;
  • Jukka Perttula, Chair of Board of Directors, Nordea Funds, as a member appointed by Nordea Nordic Small Cap Fund.

Jaakko Eskola, Chair of Suominen’s Board of Directors, serves as the fourth member of the Nomination Board. The shareholders entitled to appoint members to the Nomination Board were determined on the basis of the registered holdings in the company’s shareholders' register on September 1, 2021.

SHORT TERM RISKS AND UNCERTAINTIES

The COVID-19 pandemic continues to cause uncertainty in Suominen’s business environment. The key risks related to the virus concern the health and safety of Suominen personnel and customers, possible shortages of raw materials and issues linked to logistics, as well as potential closures of customers’ or our own plants due to virus infections or authority decisions remain valid at least until there is broad enough vaccination coverage in the countries relevant to Suominen’s business.

We have implemented extensive precautions to protect the health and safety of our employees and to ensure business continuity and progress of our strategic projects during the pandemic. We continuously monitor the raw material situation closely and we have identified risk mitigation measures such as utilization of supplementary raw material sources.

The very recent demand slowdown has naturally affected some of our customers. So far we have not experienced significant issues with customer payments and hence we do not see that our customer credit risks would have materially increased. We continue to monitor the financial positions and payment behavior of our customers. The COVID-19 pandemic has not increased Suominen’s risk of impairment losses on non-current assets.

Suominen’s other risks and uncertainties include, but are not limited to: risks related to manufacturing, competition, raw material prices and availability and customer specific volumes and credits, changes in legislation, political environment or economic conditions and investments, and financial risks.

A more detailed description of risks is available in Suominen’s Annual Report 2020 at suominen.fi/investors.


BUSINESS ENVIRONMENT

Suominen’s nonwovens are, for the most part, used in daily consumer goods such as wet wipes as well as in hygiene and medical products. In these target markets of Suominen the general economic situation determines the development of consumer demand even though the demand for consumer goods is not very cyclical in nature. North America and Europe are the largest market areas for Suominen. In addition, the company operates in the South American markets. The growth in the demand for nonwovens has typically exceeded the growth of gross domestic product by a couple of percentage points.

The market expectation is that in the long run the end user demand for wipes will remain above pre-COVID-19 levels. However, towards the end of the second quarter, especially our North American customers started to experience a sudden deceleration of demand, which in combination with extraordinary stockpiling throughout the entire supply chain created an imbalance of inventories. This impacted also Suominen’s orders, although in several cases we were able to benefit from our position as the preferred supplier of our customers. The demand started to recover already in late Q3, in some cases even quicker than previously assumed.

In Europe, another specific factor impacting demand has been the earlier uncertainty regarding the final formulation of the Single-Use Plastic Directive (SUPD) that postponed our customers’ development projects. Now that the formulation became clear, our orders were affected as converters and retailers sought to sell out their existing stocks.


OUTLOOK FOR 2021

Suominen repeats its outlook for 2021 but in light of the volatility of the markets and Suominen’s results, gives further detail on the outlook.

Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets and will amount to EUR 47–53 million. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

CORPORATE GOVERNANCE AND REMUNERATION REPORT

Suominen has prepared a separate Corporate Governance Statement and a Remuneration Report for
2020, which comply with the recommendations of the Finnish Corporate Governance Code for listed
companies. The statements also cover other central areas of corporate governance. The statements have been published on Suominen's website, separately from the Report of the Board of Directors, at www.suominen.fi

AUDIOCAST AND CONFERENCE CALL

Petri Helsky, President & CEO, and Toni Tamminen, CFO, will present the result in English in an audiocast for analyst, investors and media on October 28 at 11:00 a.m. (EEST). The audiocast can be followed at https://suominen.videosync.fi/2021-q3-results. The recording of the audiocast and the presentation material will be available after the event at www.suominen.fi.

Conference call participants are requested to dial on:
Sweden: +46 856642651 
United Kingdom: +44 3333000804 
United States: +1 6319131422 

The confirmation code for joining the conference call is 25932019#.

NEXT FINANCIAL REPORT

Suominen Corporation will publish its Financial Statements Release 2021 on February 3, 2022 approximately at 9:30 a.m. (EET)

SUOMINEN GROUP JANUARY 1 – SEPTEMBER 30, 2021

The figures in this interim report are mainly presented in EUR thousands. As a result of rounding differences, the figures presented in the tables do not necessarily add up to total.

This interim report has not been audited.

This interim report has been prepared in accordance with 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 consolidated financial statements for 2020, with the exception of the effect of the new accounting standards and interpretations which have been applied from 1.1.2021.

The new or amended standards or interpretations applicable from 1.1.2021 are not material for Suominen Group.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR thousand30.9.202130.9.202031.12.2020
Assets   
Non-current assets   
Goodwill15,49615,49615,496
Intangible assets14,32017,61316,748
Property, plant and equipment113,162106,082104,666
Right-of-use assets16,34414,30917,784
Loan receivables3,6503,978
Equity instruments421777768
Other non-current receivables716973
Deferred tax assets1,2992,6474,034
Total non-current assets 161,112160,642163,548
    
Current assets   
Inventories50,71437,97735,431
Trade receivables52,95953,67151,128
Loan receivables3,2563,476
Other current receivables5,6155,6935,675
Assets for current tax2,8553,652247
Cash and cash equivalents103,18248,74257,877
Total current assets215,325152,991153,833
    
Total assets376,437313,633317,381
    
Equity and liabilities   
Equity    
Share capital11,86011,86011,860
Share premium account24,68124,68124,681
Reserve for invested unrestricted equity75,69281,36181,361
Treasury shares-44-44
Fair value and other reserves-72-7
Exchange differences-7,801-8,131-13,933
Retained earnings55,25734,34441,962
Total equity attributable to owners of the parent159,682144,074145,882
    
Liabilities   
Non-current liabilities   
Deferred tax liabilities14,00613,44413,320
Liabilities from defined benefit plans662769774
Non-current provisions1,8851,6651,797
Non-current lease liabilities13,70610,91414,892
Other non-current liabilities41717
Debentures132,85782,56382,862
Total non-current liabilities163,119109,372113,662
    
Current liabilities   
Current provisions250
Current lease liabilities2,7232,8172,539
Liabilities for current tax1,018787415
Trade payables and other current liabilities49,89456,58454,634
Total current liabilities53,63660,18857,838
    
Total liabilities216,755169,559171,499
    
Total equity and liabilities376,437313,633317,381

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

EUR thousand7-9/20217-9/20201-9/20211-9/20201-12/2020
Net sales98,654115,435327,634347,808458,893
Cost of goods sold-93,182-95,751-285,220-295,320-389,123
Gross profit5,47219,68442,41452,48869,770
Other operating income6966942,4042,0312,584
Sales, marketing and administration expenses-6,034-6,450-19,562-20,740-27,946
Research and development expenses-678-807-1,872-2,131-2,767
Other operating expenses-298-215-317-685-2,150
Operating profit-84212,90723,06730,96239,492
Net financial expenses-969-1,761684-5,518-5,582
Profit before income taxes-1,81111,14623,75125,44433,910
Income taxes112-270-5,554-2,622-3,794
Profit for the period -1,69910,87718,19722,82230,116
      
Earnings per share, EUR     
Basic-0.030.190.320.400.52
Diluted-0.030.190.310.400.52

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand7-9/20217-9/20201-9/20211-9/20201-12/2020
      
Profit for the period -1,69910,87718,19722,82230,116
      
Other comprehensive income:     
Other comprehensive income that will be subsequently reclassified to profit or loss     
Exchange differences1,968-5,9766,691-9,252-15,504
Reclassified to profit or loss-327-327
Income taxes related to other comprehensive income-255447-559479929
Total1,713-5,5296,132-9,100-14,902
Other comprehensive income that will not be subsequently reclassified to profit or loss     
Fair value changes of equity instruments-8
Remeasurements of defined benefit plans-10
Income taxes related to other comprehensive income3
Total-15
      
Total other comprehensive income 1,713-5,5296,132-9,100-14,917
      
Total comprehensive income for the period145,34724,32913,72215,199

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR thousandShare capitalShare premium accountReserve for invested unrestricted equityTreasury shares
Equity 1.1.202111,86024,68181,361-44
Profit for the period
Other comprehensive income
Total comprehensive income
Share-based payments
Conveyance of treasury shares9044
Dividends and return of capital-5,759
Equity 30.9.202111,86024,68175,692


EUR thousandExchange differencesFair value and other reservesRetained earningsTotal equity attributable to owners of the parent
Equity 1.1.2021-13,933-741,962145,882
Profit for the period18,19718,197
Other comprehensive income6,1326,132
Total comprehensive income 6,13218,19724,329
Share-based payments900900
Conveyance of treasury shares-4490
Dividends and return of capital-5,759-11,519
Equity 30.9.2021-7,801-755,257159,682


EUR thousandShare capitalShare premium accountReserve for invested unrestricted equityTreasury shares
Equity 1.1.202011,86024,68181,269-44
Profit for the period
Other comprehensive income
Total comprehensive income
Share-based payments
Conveyance of treasury shares92
Dividends paid
Equity 30.9.202011,86024,68181,361-44


EUR thousandExchange differencesFair value and other reservesRetained earningsTotal equity attributable to owners of the parent
Equity 1.1.202070726413,715132,452
Profit for the period22,82222,822
Other comprehensive income-8,838-262-9,100
Total comprehensive income -8,838-26236,53713,722
Share-based payments684684
Conveyance of treasury shares92
Dividends paid-2,876-2,876
Equity 30.9.2020-8,131234,344144,074


EUR thousandShare capitalShare premium accountReserve for invested unrestricted equityTreasury shares
Equity 1.1.202011,86024,68181,269-44
Profit for the period
Other comprehensive income
Total comprehensive income
Share-based payments
Conveyance of treasury shares92
Dividends paid
Equity 31.12.202011,86024,68181,361-44


EUR thousandExchange differencesFair value and other reservesRetained earningsTotal equity attributable to owners of the parent
Equity 1.1.202070726413,715132,452
Profit for the period30,11630,116
Other comprehensive income-14,640-270-7-14,917
Total comprehensive income -14,640-27030,10915,199
Share-based payments1,0151,015
Conveyance of treasury shares92
Dividends paid-2,876-2,876
Equity 31.12.2020-13,933-741,962145,882

CONSOLIDATED STATEMENT OF CASH FLOWS

EUR thousand1-9/20211-9/20201-12/2020
    
Cash flow from operations   
Profit for the period18,19722,82230,116
Total adjustments to profit for the period20,91925,67234,626
Cash flow before changes in net working capital39,11648,49464,742
Change in net working capital-23,203-2,251-1,023
Financial items-2,272-3,224-4,289
Income taxes-5,449-3,882-2,438
Cash flow from operations8,19239,13756,991
    
    
Cash flow from investments   
Investments in property, plant and equipment and intangible assets-13,609-6,474-10,885
Sales proceeds from property, plant and equipment and intangible assets412
Sales proceeds sale of equity investments2,123
Cash flow from investments-11,482-6,474-10,873
    
Cash flow from financing   
Drawdown of non-current interest-bearing liabilities50,000
Issuance costs of the bonds-939
Drawdown of current interest-bearing liabilities15,00015,000
Repayment of current interest-bearing liabilities-1,998-31,316-31,968
Repayment in loan receivables9,301
Dividends and return of capital paid-11,520-2,876-2,876
Cash flow from financing44,845-19,192-19,845
    
Change in cash and cash equivalents41,55513,47126,274
    
Cash and cash equivalents at the beginning of the period57,87737,74137,741
Effect of changes in exchange rates3,750-2,470-6,138
Change in cash and cash equivalents41,55513,47126,274
Cash and cash equivalents at the end of the period103,18248,74257,877

KEY RATIOS

 7-9/
2021
7-9/
2020
1-9/
2021
1-9/
2020
1-12/
2020
Change in net sales, % *-14.511.7-5.89.711.5
Gross profit, as percentage of net sales, %5.517.112.915.115.2
Comparable EBITDA, as percentage of net sales, %4.315.711.613.613.3
Operating profit, as percentage of net sales, %-0.911.27.08.98.6
Net financial items, as percentage of net sales, %-1.0-1.50.2-1.6-1.2
Profit before income taxes, as percentage of net sales, %-1.89.77.27.37.4
Profit for the period, as percentage of net sales, %-1.79.45.66.66.6
Gross capital expenditure, EUR thousand3,3432,41114,0164,86710,406
Depreciation and amortization, EUR thousand5,0825,20014,98416,41621,432
Return on equity, rolling 12 months, %16.715.721.6
Return on invested capital, rolling 12 months, %11.813.816.7
Equity ratio, %42.546.046.0
Gearing, %30.229.925.4
Average number of personnel709687689
Earnings per share, EUR, basic-0.030.190.320.400.52
Earnings per share, EUR, diluted-0.030.190.310.400.52
Cash flow from operations per share, EUR-0.160.350.140.680.99
Equity per share, EUR2.772.502.53
Number of shares, end of period, excluding treasury shares57,624,55857,568,34157,568,341
Share price, end of period, EUR4.414.955.08
Share price, period low, EUR4.372.002.00
Share price, period high, EUR6.415.365.36
Volume weighted average price during the period, EUR5.573.664.29
Market capitalization, EUR million254.1285.0292.4
Number of traded shares during the period15,570,1166,483,44112,937,753
Number of traded shares during the period, % of average number of shares27.011.322.5

* Compared with the corresponding period in the previous year.

   30.9.202130.9.202031.12.2020
Interest-bearing net debt, EUR thousands     
Non-current interest-bearing liabilities, nominal value  148,70695,91499,892
Current interest-bearing liabilities, nominal value  2,7232,8172,539
Interest-bearing receivables and cash and cash equivalents  -103,182-55,648-65,331
Interest-bearing net debt  48,24743,08437,101

CALCULATION OF KEY RATIOS AND ALTERNATIVE PERFORMANCE MEASURES

Key ratios per share are either IFRS key ratios (earnings per share) or required by Ordinance of the Ministry of Finance in Finland or alternative performance measures (cash flow from operations per share).

Some of the other key ratios Suominen publishes are alternative performance measures. An alternative performance measure is a key ratio which has not been defined in IFRS standards. Suominen believes that the use of alternative performance measures provides useful information for example to investors regarding the Group's financial and operating performance and makes it easier to make comparisons between the reporting periods.

The link between the components of the key ratios per share and the consolidated financial statements is presented in the consolidated financial statements of 2020. The link between the components of the alternative performance measures and the consolidated financial statements is presented in Suominen’s Annual Report for 2020.

Calculation of key ratios per share

Earnings per share                                
                                

Basic earnings per share (EPS)



 Profit for the period adjusted with interest on hybrid bond, net of tax
=Share-issue adjusted average number of shares excluding treasury shares

 
    
    
Diluted earnings per share (EPS)



 Profit for the period
=Average diluted share-issue adjusted number of shares excluding treasury shares

 


EUR thousand 30.9.202130.9.202031.12.2020
Profit for the period 18,19722,82230,116
     
     
Average share-issue adjusted number of shares 57,601,00857,543,63157,549,842
Average diluted share-issue adjusted number of shares excluding treasury shares 58,019,32457,727,01357,796,591
     
Earnings per share    
     
EUR    
Basic 0.320.400.52
Diluted 0.310.400.52

Cash flow from operations per share
        

Cash flow from operations per share



 Cash flow from operations
=Share-issue adjusted number of shares excluding treasury shares, end of reporting period

 


  30.9.202130.9.202031.12.2020
Cash flow from operations, EUR thousand 8,19239,13756,991
Share-issue adjusted number of shares excluding treasury shares, end of reporting period 57,624,55857,568,34157,568,341
Cash flow from operations per share, EUR 0.140.680.99

        
Equity per share

Equity per share



 Total equity
=Share-issue adjusted number of shares excluding treasury shares, end of reporting period

 


  30.9.202130.9.202031.12.2020
Total equity attributable to owners of the parent, EUR thousand 159,682144,074145,882
Share-issue adjusted number of shares excluding treasury shares, end of reporting period 57,624,55857,568,34157,568,341
Equity per share, EUR 2.772.502.53

                           

Market capitalization

Market capitalization=Number of shares at the end of reporting period excluding treasury shares x share price at the end of period


  30.9.202130.9.202031.12.2020
Number of shares at the end of reporting period excluding treasury shares 57,624,55857,568,34157,568,341
Share price at end of the period, EUR4.414.955.08
Market capitalization, EUR million 254.1285.0292.4

Share turnover

Share turnover=The proportion of number of shares traded during the period to weighted average number of shares excluding treasury shares


  30.9.202130.9.202031.12.2020
Number of shares traded during the period 15,570,1166,483,44112,937,753
Average number of shares excluding treasury shares57,601,00857,543,63157,549,842
Share turnover, % 27.011.322.5

Calculation of key ratios and alternative performance measures

Operating profit and comparable operating profit

Operating profit (EBIT)=Profit before income taxes + net financial expenses
     
Comparable operating profit (EBIT)=Profit before income taxes + net financial expenses, adjusted with items affecting comparability

In order to improve the comparability of result between reporting periods, Suominen presents comparable operating profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to affect comparability between reporting periods. These items include, among others, impairment losses or reversals of impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets and restructuring costs. Suominen did not have any items affecting comparability in 2021 or 2020

EBITDA and comparable EBITDA

EBITDA=EBIT + depreciation, amortization and impairment losses
Comparable EBITDA=EBIT + depreciation, amortization and impairment losses, adjusted with items affecting comparability


     
EUR thousand 30.9.202130.9.202031.12.2020
Operating profit 23,06730,96239,492
+ Depreciation, amortization and impairment losses14,98416,41621,432
EBITDA 38,05147,37860,924

Gross capital expenditure

EUR thousand 30.9.202130.9.202031.12.2020
Increases in intangible assets 122283306
Increases in property, plant and equipment13,8944,58310,100
Gross capital expenditure 14,0164,86710,406

Interest-bearing net debt

It is the opinion of Suominen that presenting interest-bearing liabilities not only at amortized cost but also at nominal value gives relevant additional information to the investors.

Interest-bearing net debt=Interest-bearing liabilities at nominal value - interest-bearing receivables - cash and cash equivalents


EUR thousand 30.9.202130.9.202031.12.2020
Interest-bearing liabilities 149,28696,295100,293
Tender and issuance costs of the debentures 2,1432,4372,138
Interest bearing receivables -6,905-7,454
Cash and cash equivalents-103,182-48,742-57,877
Interest-bearing net debt 48,24743,08437,101
     
Interest-bearing liabilities 149,28696,295100,293
Tender and issuance costs of the debentures 2,1432,4372,138
Nominal value of interest-bearing liabilities 151,42998,731102,431

                                                     

Return on equity (ROE), %

Return on equity (ROE), %=Profit for the reporting period (rolling 12 months) x 100
  Total equity (quarterly average)


EUR thousand 30.9.202130.9.202031.12.2020
Profit for the reporting period (rolling 12 months) 25,49121,62730,116
     
Total equity attributable to owners of the parent 30.9.2020 / 30.9.2019 / 31.12.2019 144,074136,871132,452
Total equity attributable to owners of the parent 31.12.2020 / 31.12.2019 / 31.3.2020 145,882132,452135,868
Total equity attributable to owners of the parent 31.3.2021 / 31.3.2020 / 30.6.2020 152,227135,868138,551
Total equity attributable to owners of the parent 30.6.2021/ 30.6.2020 / 30.9.2020 159,386138,551144,074
Total equity attributable to owners of the parent 30.9.2021 / 30.9.2020 / 31.12.2020 159,682144,074145,882
Average 152,250137,563139,365
     
Return on equity (ROE), % 16.715.721.6

        

Invested capital

Invested capital=Total equity + interest-bearing liabilities


EUR thousand 30.9.202130.9.202031.12.2020
Total equity attributable to owners of the parent 159,682144,074145,882
Interest-bearing liabilities 149,28696,295100,293
Invested capital 308,968240,368246,175

Return on invested capital (ROI), %

Return on invested capital (ROI), %=Operating profit + financial income (rolling 12 months) x 100
  Invested capital, quarterly average

Financial income does not include fair value changes of assets at fair value through profit or loss.

EUR thousand 30.9.202130.9.202031.12.2020
Operating profit (rolling 12 months) 31,59632,36739,492
Financial income (rolling 12 months) 476942925
Total 32,07333,31040,416
     
Invested capital 30.9.2020 / 30.9.2019 / 31.12.2019 240,368246,660241,615
Invested capital 31.12.2021 / 31.12.2019 / 31.3.2020 246,175241,615240,761
Invested capital 31.3.2021 / 31.3.2020 / 30.6.2020 252,608240,761238,195
Invested capital 30.6.2021/ 30.6.2020 / 30.9.2020 308,615238,195240,368
Invested capital 30.9.2021 / 30.9.2020 / 31.12.2020 308,968240,368246,175
Average 271,347241,520241,423
     
Return on invested capital (ROI), % 11.813.816.7

Equity ratio, %

Equity ratio, %=Total equity x 100 
  Total assets - advances received 


EUR thousand 30.9.202130.9.202031.12.2020
Total equity attributable to owners of the parent 159,682144,074145,882
     
Total assets 376,437313,633317,381
Advances received -430-248-23
  376,008313,385317,358
     
Equity ratio, % 42.546.046.0

Gearing, %

Gearing, %=Interest-bearing net debt x 100 
  Total equity


EUR thousand 30.9.202130.9.202031.12.2020
Interest-bearing net debt 48,24743,08437,101
Total equity attributable to owners of the parent 159,682144,074145,882
Gearing, % 30.229.925.4

NET SALES BY GEOGRAPHICAL MARKET AREA

EUR thousand1-9/20211-9/20201-12/2020
Finland2,0872,4733,180
Rest of Europe124,512115,215156,060
North and South America199,523227,180295,975
Rest of the world1,5122,9413,678
Total327,634347,808458,893

QUARTERLY SALES DEVELOPMENT BY BUSINESS AREA

  20212020
EUR thousand7-94-61-310-127-94-61-3
Americas57,04867,40271,90466,82971,94777,16273,170
Europe41,63446,25143,43244,27643,54245,04737,054
Unallocated exchange differences and eliminations-28-6-2-19-54-38-21
Total98,654113,647115,333111,086115,435122,170110,203

QUARTERLY DEVELOPMENT

 20212020
EUR thousand7-94-61-310-127-94-61-3
Net sales98,654113,647115,333111,086115,435122,170110,203
Comparable EBITDA4,24015,27718,53413,54618,10717,98911,282
as % of net sales4.313.416.112.215.714.710.2
EBITDA4,24015,27718,53413,54618,10717,98911,282
as % of net sales4.313.416.112.215.714.710.2
Items affecting comparability
Operating profit-84210,31713,5928,53012,90712,3915,664
as % of net sales-0.99.111.87.711.210.15.1
Net financial items-969-1,6133,266-64-1,761-1,813-1,945
Profit before income taxes-1,8118,70416,8588,46611,14610,5793,719
as % of net sales-1.87.714.67.69.78.73.4

RELATED PARTY INFORMATION

The related parties of Suominen include the members of the Board of Directors, President & CEO and the members of the Executive Team as well as their family members and their controlled companies. In addition, shareholders who have a significant influence in Suominen through share ownership are included in related parties. Suominen has no associated companies.

In its transactions with related parties Suominen follows the same commercial terms as in transactions with third parties.

The Annual General Meeting held on March 25, 2021 resolved that 40% of the annual remuneration for the Board of Directors is paid in Suominen Corporation’s shares. The number of shares transferred to the members of the Board of Directors as their remuneration payable in shares for 2021 was 16,042 shares. The shares were transferred on May 31, 2021 and the value of the transferred shares totaled EUR 90,445.

One of Suominen’s share-based plans vested and shares were transferred to the participants of the plan in February. The President & CEO received 12,002 shares, and the value of the shares and portion settled in cash totaled EUR 128 thousand. The number of the shares transferred to other members of the Executive Team was 14,742 shares. The value of the shares and the portion settled in cash was EUR 146 thousand

In accordance with the terms and conditions of the matching restricted share plan 2019, Suominen Corporation transferred a total of 9,352 shares without consideration to the participants of the plan’s vesting period 2020-2021. Of the total number of transferred shares, 4,676 shares were transferred to President & CEO Petri Helsky and 4,676 shares to another member of the Executive Team.

CHANGES IN PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND RIGHT-OF-USE ASSETS

 30.9.202130.9.202031.12.2020
EUR thousandProperty, plant and equipmentIntangible assetsProperty, plant and equipmentIntangible assetsProperty, plant and equipmentIntangible assets
Carrying amount at the beginning of the period104,66616,748121,58420,020121,58420,020
Capital expenditure and increases13,8941224,58328310,100306
Disposals and decreases00
Depreciation, amortization and impairment losses-9,969-2,615-11,077-2,675-14,354-3,549
Exchange differences and other changes4,57165-9,008-15-12,664-29
Carrying amount at the end of the period113,16214,320106,08217,613104,66616,748


Goodwill is not included in intangible assets.

 30.9.202130.9.202031.12.2020
EUR thousandRight-of-use assetsRight-of-use assetsRight-of-use assets
Carrying amount at the beginning of the period17,78414,31914,319
Increases5992,8527,410
Disposals and decreases-59-9-80
Depreciation, amortization and impairment losses-2,399-2,664-3,530
Exchange differences and other changes419-190-335
Carrying amount at the end of the period16,34414,30917,784

CHANGES IN INTEREST-BEARING LIABILITIES

EUR thousand1-9/20211-9/20201-12/2020
Total interest-bearing liabilities at the beginning of the period100,293109,163109,163
Current liabilities at the beginning of the period2,53916,98616,986
Repayment of current liabilities, cash flow items-1,998-31,316-31,968
Drawdown of current liabilities, cash flow items15,00015,000
Increases in current liabilities, non-cash flow items226201276
Decreases of current liabilities, non-cash flow items-41-291-625
Reclassification from non-current liabilities1,9362,3093,001
Exchange rate difference, non-cash flow item61-72-130
Current liabilities at the end of the period2,7232,8172,539
    
Non-current liabilities at the beginning of the period14,89210,46410,464
Increases in non-current liabilities, non-cash flow items3802,9297,744
Decreases of non-current liabilities, non-cash flow items-29-3
Reclassification to current liabilities-1,936-2,309-3,001
Exchange rate difference, non-cash flow item399-169-312
Non-current liabilities at the end of the period13,70610,91414,892
    
Non-current debentures at the beginning of the period82,86281,71481,714
Increases in debentures50,000
Periodization of debentures to amortized cost, non-cash flow items9338501,148
Tender and issuance costs of the debentures, cash flow items-939
Non-current debentures at the end of the period132,85782,56482,862
Total interest-bearing liabilities at the end of the period149,28696,294100,293

CONTINGENT LIABILITIES

     
EUR thousands30.9.2021 30.9.202031.12.2020
     
Other commitments    
Leasing commitments101 135104
Contractual commitments to acquire property, plant and equipment1,883 4,8726,586
Commitments to leases not yet commenced251 34
     
Guarantees    
On own behalf3,967 8,0834,317
Other own commitments26,911 28,05533,452
 30,878 36,13737,769

NOMINAL AND FAIR VALUES OF DERIVATIVE INSTRUMENTS

 30.9.202130.9.202031.12.2020
EUR thousandNominal valueFair
value
Nominal
value
Fair
value
Nominal
value
Fair
value
Currency forward contracts      
Hedge accounting not applied1,917-433,965-122,99160

FINANCIAL ASSETS BY CATEGORY

a. Fair value through profit or loss
b. Financial assets at amortized cost
c. Financial assets at fair value through other comprehensive income
d. Carrying amount
e. Fair value


 Classification
EUR thousanda.b.c.d.e.
Equity instruments421421421
Trade receivables52,95952,95952,959
Derivative receivables555
Interest and other financial receivables284284284
Cash and cash equivalents103,182103,182103,182
Total 30.9.20215156,426421156,851156,851


  
EUR thousanda.b.c.d.e. 
Equity instruments347421768768 
Loan receivables3,4763,9787,4547,454 
Trade receivables51,12851,12851,128 
Derivative receivables616161 
Interest and other financial receivables378378378 
Cash and cash equivalents57,87757,87757,877 
Total 31.12.20203,885113,360421117,666117,666 

Principles in estimating fair value of financial assets for 2021 are the same as those used for preparing the consolidated financial statements for 2020.

FINANCIAL LIABILITIES

 30.9.202131.12.2020
EUR thousandCarrying amountFair valueNominal valueCarrying amountFair valueNominal value 
Non-current financial liabilities       
        
Debentures132,857136,738135,00082,86287,66185,000 
Lease liabilities13,70613,70613,70614,89214,89214,892 
Total non-current financial liabilities146,562150,444148,70697,754102,55399,892 
        
Current financial liabilities       
        
Lease liabilities2,7232,7232,7232,5392,5392,539 
Interest accruals2,3532,3532,353522522522 
Derivative liabilities474747111 
Other current liabilities679679679552552552 
Trade payables36,15836,15836,15842,02442,02442,024 
Total current financial liabilities41,96141,96141,96145,63945,63945,639 
        
Total188,523192,405190,667143,393148,191145,531 


Principles in estimating fair value for financial liabilities for 2021 are the same as those used for preparing the consolidated financial statements for 2020.

FAIR VALUE MEASUREMENT HIERARCHY

EUR thousandsLevel 1Level 2Level 3
Financial assets and liabilities at fair value   
Currency forward contracts, receivables5
Equity instruments421
Total5421
    
Derivatives at fair value   
Currency forward contracts, liabilities-47
Total-47

Principles in estimating fair value of financial assets and their hierarchies for 2021 are the same as those used for preparing the consolidated financial statements for 2020.   

There were no transfers in the fair value measurement hierarchy levels during the reporting period.   

SUOMINEN CORPORATION
Board of Directors


For additional information, please contact:
Petri Helsky, President & CEO, tel. +358 (0)10 214 3080
Toni Tamminen, CFO, tel. +358 (0)10 214 3051




Suominen manufactures nonwovens as roll goods for wipes and other applications. Our vision is to be the frontrunner for nonwovens innovation and sustainability. The end products made of Suominen’s nonwovens are present in people’s daily life worldwide. Suominen’s net sales in 2020 were EUR 458.9 million and we have nearly 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki. Read more at www.suominen.fi.


Distribution:
Nasdaq Helsinki
Main media
www.suominen.fi

Attachment


Source: GlobeNewswire
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