Suominen Corporation’s Financial Statements Release for January
1–December 31, 2021: Strong annual result in a challenging year
Suominen Corporation Financial Statements Release on February 3,
2022 at 9:30 a.m. (EET) Suominen Corporation’s Financial Statements
Release for January 1–December 31, 2021:Strong annual result in a
challenging year
Key figures
| |
10-12/ |
10-12/ |
1-12/ |
1-12/ |
|
|
2021 |
2020 |
2021 |
2020 |
| Net sales, EUR
million |
115.6 |
111.1 |
443.2 |
458.9 |
| Comparable
EBITDA |
9.0 |
13.5 |
47.0 |
60.9 |
| Comparable
EBITDA, % |
7.8 |
12.2 |
10.6 |
13.3 |
| EBITDA |
9.0 |
13.5 |
47.0 |
60.9 |
| Operating
profit, EUR million |
3.9 |
8.5 |
26.9 |
39.5 |
| Operating
profit, % |
3.4 |
7.7 |
6.1 |
8.6 |
| Profit for the
period, EUR million |
2.5 |
7.3 |
20.7 |
30.1 |
| Cash flow from
operations, EUR million |
2.9 |
17.9 |
11.1 |
57.0 |
| Cash flow from
operations per share, EUR |
0.05 |
0.31 |
0.19 |
0.99 |
| Earnings per
share, basic, EUR |
0.04 |
0.13 |
0.36 |
0.52 |
| Return on
invested capital, rolling 12 months, % |
− |
− |
9.5 |
16.7 |
| Gearing, % |
− |
− |
30.4 |
25.4 |
| Dividend and
return of capital per share, EUR * |
− |
− |
0.20* |
0.20 |
* 2021 proposal to the Annual General MeetingIn this Financial
Statement Release, the figures shown in brackets refer to the
comparison period last year if not otherwise stated.
October–December
2021 in
brief:- Net sales increased by 4% and
were EUR 115.6 million (111.1)- Comparable EBITDA was EUR 9.0
million (13.5)- Cash flow from operations decreased to EUR 2.9
million (17.9)
Financial year
2021 in
brief:- Net sales decreased by 3% and
were EUR 443.2 million (458.9)- Comparable EBITDA was EUR 47.0
million (60.9)- Cash flow from operations totaled to EUR 11.1
million (57.0)- Board of Directors proposes to the Annual General
meeting a dividend of EUR 0.20 per share
Outlook:Suominen expects that its comparable
EBITDA (earnings before interest, taxes, depreciation and
amortization) in 2022 will decrease from 2021. The main reasons are
inventory levels which still remain high at certain customers as
well as operational issues in the entire supply chain due to the
current COVID-19 situation, both of which will impact the result
negatively especially in the first quarter. In 2021, Suominen’s
comparable EBITDA was EUR 47.0 million.
Board proposal on distribution of
dividend: The Board of Directors
proposes to the Annual General meeting, that a dividend of EUR 0.20
per share shall be distributed for the financial year 2021.
On February 2, 2022, the company had 57,224,558 issued shares,
excluding treasury shares. With this number of shares, the total
amount of dividends to be distributed would be EUR
11,444,911.60.
Petri Helsky, President and
CEO:
”The second year of the COVID-19 pandemic was for Suominen
twofold. In the first half of the year Suominen’s sales volumes and
results continued on the record levels of 2020. Suddenly in the
third quarter the volumes dropped temporarily due to overstocking
in the supply chain followed by partial recovery in the fourth
quarter.
Our EBITDA in 2021 was EUR 47.0 million (60.9) which was the
third best annual result in Suominen’s history. The result declined
from record high 2020 mainly due to lower sales volumes and the
increases in raw material, freight and energy costs which we were
not fully able to push through to our sales prices. Our net sales
were EUR 443.2 million (458.9). Our strong ability to innovate and
meet the market needs is reflected in the share of new products of
our net sales which was above 25% in 2021.
We continued executing our strategy published in 2020. During
2021 we completed three investment projects. Two of them were in
Italy, one to increase the capacity by restarting a line and
another to increase our capabilities in sustainable nonwovens. The
third project was in the USA to increase our capabilities to offer
new innovative products.
The cornerstone of our strategy is sustainability, and we are
continuously developing our offering and operations accordingly. We
are targeting to increase the sales of sustainable products by 50%
compared to the base year of 2019 and launch 10 sustainable
products per year. In 2021, the sales of sustainable products were
47% higher than in the baseline year 2019 and during the year we
launched 16 sustainable products. In our operations we want to use
resources efficiently and to operate with the smallest possible
impact on the environment. We have concrete reduction targets for
our greenhouse gas emissions, energy consumption, water consumption
and waste to landfill and we progressed steadily towards these
targets in 2021. For example, as part of our work to reduce
greenhouse gas emissions, we made the decision to shift entirely to
fossil-free electricity in all our European sites.
In June we issued a EUR 50 million six-year bond with a coupon
rate of 1.50% to be used for general corporate purposes.
Looking at the year ahead we see challenges especially in the
coming months. Certain major customers still struggle with their
inventory levels. Combined with the recent surge of COVID-19 cases
which impacts both our and our customers’ operations, the near-term
demand picture seems very volatile. We also continue to have a lag
between the rising raw material, energy and logistics costs and our
sales prices. We expect the demand for our products to stabilize
starting from the second quarter of the year as the end consumer
demand is expected to remain above pre-pandemic levels.
To conclude, I want to thank all our employees for their
contribution and hard work and our customers and vendors for
excellent cooperation in 2021.”
NET
SALESOctober–December
2021In the fourth
quarter, Suominen’s net sales increased by 4% from the comparison
period to EUR 115.6 million (111.1). Sales volumes decreased from
the comparison period but increased from Q3/2021 while sales prices
increased following the higher raw material prices. Currencies
impacted net sales positively by EUR 2.7 million.
Net sales of the Americas business area amounted to EUR 68.9
million (66.8) and net sales of the Europe business area EUR 46.7
million (44.3). Financial year
2021In 2021, Suominen’s
net sales decreased by 3% from the comparison period to EUR 443.2
million (458.9). Sales volumes decreased while sales prices
increased following the higher raw material prices. Currencies
impacted net sales negatively by EUR 11.1 million.
Net sales of Americas business area were EUR 265.2 million
(289.1) and net sales of Europe business area EUR 178.1 million
(169.9).
EBITDA, OPERATING PROFIT AND
RESULT
October–December
2021EBITDA (earnings
before interest, taxes, depreciation and amortization) was EUR 9.0
million (13.5). The main drivers for the result decline were lower
sales volumes and higher raw material, freight and energy prices
for which the higher sales prices could not fully compensate.
Manufacturing and SG&A cost savings actions impacted the result
positively. Other operating income and expenses were positively
impacted by insurance compensations and adjustments to certain
previous year accruals. Currencies impacted EBITDA negatively by
EUR 0.5 million.
Operating profit decreased from the corresponding period of the
previous year and was EUR 3.9 million (8.5).
Result before income taxes in the fourth quarter was EUR 2.8
million (8.5) and profit for the period EUR 2.5 million (7.3). The
income taxes for the period were EUR -0.3 million (-1.2).
Financial year 2021EBITDA
(earnings before interest, taxes, depreciation and amortization)
was EUR 47.0 million (60.9).EBITDA decreased mainly due to lower
sales volumes. The increases in raw material, freight and energy
costs were not fully compensated by higher sales prices.
Manufacturing and SG&A cost savings actions impacted the result
positively. Other operating income and expenses were positively
impacted by insurance compensations and adjustments to certain
previous year accruals. Currencies impacted EBITDA negatively by
EUR 2.4 million.
Operating profit amounted to EUR 26.9 million (39.5).
In 2021, profit before income taxes was EUR 26.6 million (33.9).
Income taxes for the financial year were EUR -5.8 million (-3.8).
The income taxes of the comparison year were positively impacted by
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.
The profit for the period was EUR 20.7 million (30.1).
FINANCING The Group’s net interest-bearing
liabilities, calculated with the nominal value of the
interest-bearing liabilities at the end of the review period,
December 31, 2021, amounted to EUR 49.6 million (37.1). Gearing was
30.4% (25.4%) and equity ratio 42.2% (46.0%).
In 2021, net financial expenses were EUR -0.4 million (-5.6), or
0.1% (1.2%) of net sales. Net effect of changes in foreign exchange
rates in financial items were EUR +1.7 million (-0.4).
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 the fourth quarter was EUR
2.9 million (17.9). Cash flow from operations in 2021 was EUR 11.1
million (57.0). Cash flow from operations per share in 2021 was EUR
0.19 (0.99). The financial items in the cash flow from operations,
in total EUR -5.3 million (-4.3), were principally impacted by the
interests paid during the reporting period. The change in the net
working capital in 2021 was EUR 25.2 million negative (EUR 1.0
million negative) due to higher inventories and receivables.
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 1.50%. 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 2021, the gross capital
expenditure totaled EUR 17.8 million (10.4) 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.
Depreciations and amortizations were EUR -20.1 million
(-21.4).PERSONNELDuring 2021, Suominen employed
709 FTEs (689) on average, and 707 (691) FTEs at the end of 2021.
The increase was primarily in the Operations function, as a new
production line was taken into use in Italy.
IMPACTS OF THE COVID-19 PANDEMIC ON
SUOMINEN
The health and safety of Suominen’s employees is our key
priority. When the COVID-19 pandemic started, we implemented
several safety and other precautionary measures which remained
active in 2021. Thanks to our proactive approach, in 2021 there was
only limited impact on our ability to serve our customers and run
our operations. As a nonwovens manufacturer Suominen is an integral
part of the supply chain making disinfecting and cleaning products
for fighting the coronavirus.
The pandemic has increased the demand for our products in all
our markets. At the end of the second quarter of 2021 the demand
started to decelerate especially in North America, but started to
recover in late Q3. The latest surge of COVID-19 cases will have a
negative effect on our and our customers’ operations and hence the
short-term demand in the early part of 2022. In the long run the
market and Suominen’s expectation is that demand will remain above
pre-COVID-19 levels.
Both Suominen’s financial position and cash flow have remained
strong throughout the pandemic.
The key risks caused by COVID-19 are related to the health and
safety of Suominen personnel and customers, possible shortages of
raw materials, issues linked to logistics as well as potential
closures of customers’ or our own plants due to virus infections or
authority decisions. These risks remain valid in the beginning of
2022. Some of these risks have materialized as lately our and our
customers' operations have been impacted because of sickness
absences. 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
these unusual times. We monitor the raw material situation closely
and we have identified risk mitigation measures such as utilization
of supplementary raw material sources. The vast majority of our
customers have experienced increased demand for their products and
thus our customer credit risks have not materially increased. The
COVID-19 pandemic has not increased Suominen’s risk of impairment
losses on non-current assets.
PROGRESS IN SUSTAINABILITYWe have a
comprehensive approach to sustainability and our Sustainability
agenda 2020-2025 defines our focus areas and their KPIs.
We have strong focus on safety and accident prevention, and our
long-term target is to have zero lost-time accidents. In 2021,
Suominen had 4 (1) lost time accidents.
Increasing employee engagement is another of our key
people-related targets. We conducted a second consecutive global
employee engagement survey in 2021 and based on the results our
employee engagement index is 66% (69%). The index is a combination
of questions concerning our people's retention, likelihood to
recommend the company, organizational pride and commitment. Our
target is that our engagement index will be 73% by 2025.
We are committed to continuously improving our production
efficiency and the efficient utilization of natural resources. Our
target is to reduce our 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. By the end of
2021, our water consumption has decreased by 20.3%, waste to
landfill by 16.4%, energy consumption by 7.1%, and greenhouse gas
emissions by 8.8% per ton of product compared to 2019. As one
example of our continuous work to decrease our greenhouse gas
emissions, a decision to move entirely to fossil free electricity
in all our European plans was made in 2021. We monitor our progress
regularly and are always seeking new ways to further improve our
operations.
Regarding sustainable products, our target is to increase their
sales by 50% by 2025 and to have over 10 sustainable product
launches per year. In 2021, we launched 16 sustainable products and
the sales of sustainable product sales has increased by 47%
compared to the base year of 2019.
We launched our renewed Code of Conduct in the beginning of 2021
and a mandatory training about the Code was arranged to all
employees.
As part of our Annual Report 2021 which will be published in the
week starting on February 28, 2022, we report the development of
our sustainability performance. Our sustainability reporting in
2021 is in accordance with the Core option of the GRI Standards by
the Global Reporting Initiative.
SHARE INFORMATIONShare
capitalThe number of Suominen’s registered shares was
58,259,219 on December 31, 2021, equaling to a share capital of EUR
11,860,056.00. Suominen has one series of shares. Each share
carries one vote in the Shareholders’ Meeting and right to an
equally-sized dividend. Suominen’s shares are affiliated in a
book-entry system. Share trading and priceThe
number of Suominen Corporation shares (SUY1V) traded on Nasdaq
Helsinki from January 1 to December 31, 2021 was 17,714,203 shares,
accounting for 30.8% of the average number of shares (excluding
treasury shares). The highest price was EUR 6.41, the lowest EUR
4.25 and the volume-weighted average price EUR 5.48. The closing
price at the beginning of the review period, on January 4, 2021,
was EUR 5.06 and the closing price on the last trading date of the
review period, on December 30, 2021, was EUR 5.18.
The market capitalization (excluding treasury shares) was EUR
296.8 million on December 31, 2021.
Treasury sharesOn December 31, 2021, Suominen
Corporation held 965,984 treasury shares, calculated based on the
trade date.
As a share-based incentive 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 restricted share plan, 9,352
shares were transferred to the participants of the plan in
September 2021.
Suominen announced on November 1, 2021, that the Board of
Directors of Suominen Corporation had decided to use the
authorization given by the Annual General Meeting held on March 25,
2021 to repurchase the company’s own shares. The maximum number of
shares to be repurchased in one or more instalments is 400,000
shares, corresponding to approximately 0.7% of the total number of
the company’s shares, which is 58,259,219. The maximum amount to be
spent on the repurchases is EUR 2.5 million. The weighty financial
reason for the repurchases is that they are to be used for pay-outs
under the share-based incentive programs of Suominen
Corporation.
The shares were purchased otherwise than in proportion to
shareholders’ current holdings using the company’s non-restricted
shareholders’ equity at the market price valid at the time of
purchase of the shares through trading in a regulated market
arranged by NASDAQ Helsinki Oy. The shares were acquired and paid
for according to the rules and instructions of NASDAQ Helsinki Oy
and Euroclear Finland Ltd.
The share repurchases commenced on November 3, 2021 and ended on
January 21, 2022.
On December 31, 2021, based on the trade date, Suominen had
repurchased in total 331,323 shares with the total consideration of
EUR 1.6 million. The average purchase price was EUR 4.95 per
share.
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.
On May 31, 2021 Suominen announced about the portion of the
annual remuneration of the members of the Board of Directors which
was paid in shares. The total number of the shares that were
granted out of the treasury shares was 16,042 shares.
On February 25, 2021, in accordance with the share-based
incentive plan 2018–2020, 34,872 shares were transferred to the
participants of the plan.
On September 13, 2021, in accordance with the matching
restricted share plan, 9,352 shares were transferred to the
participants of the plan.
After these transactions, the maximum amount of the
authorization is 4,939,734 shares in aggregate.
Remuneration of the Board payable in
shares
The AGM held on March 25, 2021 confirmed the remuneration of the
Board of Directors. 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 number of shares forming the remuneration portion,
which is 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.
Since the decision taken by the Board of Directors was
essentially an execution of a detailed resolution taken by the AGM,
the Board did not exercise independent discretion when it decided
on the transfer of the shares. The transferred shares are of the
same class as the company’s other shares.Share-based
incentive plans for the management and key employees
valid in 2021
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 Period |
2019–2021 |
2020–2022 |
2021–2023 |
|
Incentive based on |
Total Shareholder Return (TSR) |
Total Shareholder Return (TSR) |
Total Shareholder Return (TSR) |
|
Potential reward payment |
Will be paid partly in Suominen shares and partly in cash in spring
2022 |
Will be paid partly in Suominen shares and partly in cash in spring
2023 |
Will be paid partly in Suominen shares and partly in cash in spring
2024 |
|
Participants |
16 people |
17 people |
19 people |
|
Maximum number of shares |
546,000 |
748,500 |
456,500 |
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 2019–2021Suominen 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.SHAREHOLDERS At the end of the
review period, on December 31, 2021, Suominen Corporation had in
total 5,726 shareholders. Suominen is not aware of any shareholder
agreements related with the shareholding or use of voting rights.
Detailed information on the management shareholding and a table
presenting the largest shareholders is available in the notes of
this Financial Statement Release. Notifications under
Chapter 9, Section 5 of the Securities Market Act
April 29, 2021: The shareholding of Nordea Funds Ltd in Suominen
exceeded the threshold of 5%.
April 16, 2021: The shareholding of Bolero Holdings SARL
ownership in Suominen decreased to below 5%.
January 18, 2021: The shareholding of Elo Mutual Pension
Insurance Company in Suominen decreased to below 5%.
January 15, 2021: The shareholding of Oy Etra Invest Ab and
Tiiviste-Group Oy, companies controlled by Mr. Erkki Etola, of the
total amount of shares and voting rights in Suominen Corporation
increased above 15%.
COMPOSITION OF THE NOMINATION BOARDIn
accordance with the decision taken by the Annual General Meeting of
Suominen Corporation, the representatives notified by the company’s
three largest shareholders have been elected to Suominen
Corporation’s permanent Nomination Board. In addition, Chair of the
company’s Board of Directors shall serve as the fourth member. The
shareholders entitled to appoint members to the Nomination Board
during financial year 2021 were determined on the basis of the
registered holdings in the company’s shareholder register on
September 1, 2021 and on September 1, 2020. The Nomination Board
shall submit its proposals to the Board of Directors no later than
February 1 prior to the Annual General Meeting.
Suominen’s three largest registered shareholders on the basis of
the registered holdings in the company’s shareholders’ register on
September 1, 2021, Ahlstrom Capital B.V., Oy Etra Invest
Ab and Nordea Nordic Small Cap Fund 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 Group, 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.
ANNUAL GENERAL MEETINGThe 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 earlier in this 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 re-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.
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 new Board member can be viewed on
Suominen’s website at www.suominen.fi.
BUSINESS RISKS AND UNCERTAINTIES
Manufacturing risksSuominen has production plants
in several European countries, United States and Brazil.
Interruptions at the plants caused for example by machinery
breakdown can cause production losses and delivery problems.
Ongoing maintenance and investments aiming to extend the lifetime
of the assets are an essential part of ensuring the operational
efficiency of the existing production lines.
Suominen’s operations could be disrupted due to abrupt and
unforeseen events beyond the company's control, such as power
outages or fire and water damage. Suominen may not be able to
control such events through predictive actions, which could lead to
interruptions in business. Risks of this type are insured in order
to guarantee the continuity of operations. As Suominen has a valid
damage and business interruption insurance, it is expected that the
damage would be compensated, and the financial losses caused by the
interruption of business would be covered. Suominen uses certain
technologies in its production. In the management’s view, the
chosen technologies are competitive and there is no need to make
major investments in new technologies. However, it cannot be
excluded that the company’s technology choices could prove wrong,
and the development of new or substitute technologies would then
require investments.
CompetitionSuominen has numerous regional,
national and global competitors in its different product groups.
Products based on new technologies and imports from countries of
lower production costs may reduce Suominen’s competitive edge. If
Suominen is not able to compete with an attractive product
offering, it may lose some of its market share. Competition may
lead to increased pricing pressure on the company’s products.
Price and availability of raw materialsSuominen
purchases significant amounts of pulp- and oil-based raw materials.
Raw materials are the largest cost item for operations. Changes in
the global market prices of raw materials can have an impact on the
company’s profitability. Suominen’s stocks equal two to four weeks’
consumption and it generally takes two to five months for raw
material price changes to be reflected in Suominen’s customer
pricing either through automatic pricing mechanisms or negotiated
price changes.
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 most
of its raw materials from a number of major international
suppliers, significant interruptions in the production of the
majority of Suominen’s products are unlikely.
Price and availability of energyEnergy costs
represent a significant portion of Suominen's production costs.
Suominen consumes mainly electricity and gas. Higher prices as well
as reduced availability of energy could have an impact on
Suominen's profitability through increased production costs.
Market and customer risksSuominen’s customer
base is fairly concentrated, which increases the potential impact
of changes in customer specific sales volumes. In 2021, the Group’s
ten largest customers accounted for 66 (67%) of the Group net
sales. Long-term contracts are preferred with the largest
customers. In practice, the customer relationships are long-term
and last for several years. Customer-related credit risks are
managed in accordance with a credit policy approved by the Board of
Directors. Credit limits are confirmed for customers on the basis
of credit ratings and customer history.
The demand for Suominen’s products depends on possible changes
in consumer preferences. Historically, such changes have had mainly
a positive impact on Suominen, as they have resulted in the growing
demand for products made of nonwovens. For example, the COVID-19
pandemic increased the demand for nonwovens for cleaning and
disinfecting wipes. However, certain factors, including consumers’
attitude towards the use of products made even partially of
oil-based raw materials, or their perception on the sustainability
of disposable products in general, might change the consumers’
buying habits. Suominen monitors the consumer trends proactively
and develops its product offering accordingly. The company has had
biodegradable, 100% plant-based nonwovens in its portfolio for over
10 years and hence is well positioned to respond to changes in
customer preferences related to sustainability and climate
change.
Changes in legislation, political environment or
economic conditions Suominen’s business and products can
be affected directly or indirectly by political decisions and
changes in government regulations for example in areas such as
environmental policy or waste legislation. An example of such
legislation is the EU's Single-Use Plastics Directive that focuses
on reducing marine litter. The potential exists for similar
regulations to expand worldwide. This creates demand for more
sustainable products, and Suominen is well placed to respond to
this increasing demand.
Global political developments could have an adverse effect on
Suominen. For instance, a political decision that constrains the
global free trade may significantly impact the availability and
price of certain raw materials, which would in turn affect
Suominen’s business and profitability. Suominen’s geographical and
customer-industry diversity provide partial protection against this
risk.
The relevance of the United States in Suominen’s business
operations increases the significance of the exchange rate risk
related to USD in the Group’s total foreign exchange position.
Suominen hedges this foreign exchange position in accordance with
its hedging policy.The risks that are characteristic to South
American region, including significant changes in political
environment or exchange rates, could have an impact on Suominen’s
operations in Brazil.
InvestmentsSuominen continuously invests in
its manufacturing facilities. The deployment of the investments may
delay from what was planned, the costs of the investments may
increase from what has been expected or the investments may create
less business benefits than anticipated. The deployment phase of
investments may cause temporary interruptions in operations.
Cyber and information securitySuominen’s
operations are dependent on the integrity, security and stable
operation of its information and communication systems and software
as well as on the successful management of cyber attack risks. If
Suominen’s information and communication systems and software were
to become unusable or significantly impaired for an extended period
of time, or the cyber attack risks are realized, Suominen’s
reputation as well as ability to deliver products at the appointed
time, order raw materials and handle inventory could be adversely
impacted. Financial risksThe Group is exposed to
several financial risks, such as foreign exchange, interest rate,
counterparty, liquidity and credit risks. The Group’s financial
risks are managed in line with a policy confirmed by the Board of
Directors. The financial risks are described in the Note 3 of the
consolidated financial statements.
Suominen is subject to corporate income taxes in numerous
jurisdictions. Significant judgment is required to determine the
total amount of corporate income tax at Group level. There are many
transactions and calculations that leave room for uncertainty as to
the final amount of the income taxes. Tax risks relate also to
changes in tax rates or tax legislation or misinterpretations, and
materialization of the risks could result in increased payments or
sanctions by the tax authorities, which in turn could lead to
financial loss. Deferred tax assets included in the statement of
financial position require that the deferred tax assets can be
recovered against the future taxable income.
Suominen performs goodwill impairment testing annually. In
impairment testing the recoverable amounts are determined as the
value in use, which comprises of the discounted projected future
cash flows. Actual cash flows can differ from the discounted
projected future cash flows. Uncertainties related to the projected
future cash flows include, among others, the long economic useful
life of the assets and changes in the forecast sales prices of
Suominen’s products, production costs as well as discount rates
used in testing. Due to the uncertainty inherent in the future, it
is possible that Suominen’s recoverable amounts will be
insufficient to cover the carrying amounts of assets, particularly
goodwill. If this happens, it will be necessary to recognize an
impairment loss, which, when implemented, will weaken the result
and equity. Goodwill impairment testing has been described in the
consolidated financial statements.BUSINESS
ENVIRONMENTSuominen’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
levels. However, towards the end of the second quarter in 2021,
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 in late Q3, in some cases even quicker than
previously assumed.
Looking at the year ahead the near-term demand picture seems
very volatile due to certain major customers still struggling with
their inventory levels combined with the recent surge of COVID-19
cases which impacts both our and our customers’ operations. We also
continue to have a lag between the rising raw material, energy and
logistics costs and our sales prices. We expect the demand
situation to stabilize starting from the second quarter of the
year.
OUTLOOK Suominen expects that its comparable
EBITDA (earnings before interest, taxes, depreciation and
amortization) in 2022 will decrease from 2021. The main reasons are
inventory levels which still remain high at certain customers as
well as operational issues in the entire supply chain due to the
current COVID-19 situation, both of which will impact the result
negatively especially in the first quarter. In 2021, Suominen’s
comparable EBITDA was EUR 47.0 million.
PROPOSAL ON DISTRIBUTION OF
FUNDS The profit of the financial year 2021 of Suominen
Corporation, the parent company of Suominen Group, was EUR
15,247,807.51. The funds distributable as dividends, including the
profit for the period, were EUR 19,944,482 and total distributable
funds were EUR 95,636,818.
The Board of Directors proposes that a dividend of EUR 0.20 per
share shall be distributed for the financial year 2021 and that the
profit shall be transferred to retained earnings.
On February 2, 2022, the company had 57,224,558 issued shares,
excluding treasury shares. With this number of shares, the total
amount of dividends to be distributed would be EUR
11,444,911.60.
There have been no significant changes in the company’s
financial position after the end of the review period. The record
date is March 28, 2022 and the dividend will be paid on April 7,
2022.DISCLOSURE OF THE CORPORATE
GOVERNANCE STATEMENT,
REMUNERATION REPORT,
THE FINANCIAL
STATEMENTS, THE REPORT BY THE
BOARD OF DIRECTORS AND
NON-FINANCIAL REPORT Suominen will publish its
Financial Statements, Report by the Board of Directors, Auditor’s
Report, Corporate Governance Statement, Remuneration Report and
Non-Financial Report including EU Taxonomy report, concerning the
financial year 2021, as part of the Annual Report during the week
commencing February 28, 2022. The above documents will be published
as a Stock Exchange Release and they will be available also at
www.suominen.fi.
ANNUAL GENERAL MEETING
2022The Annual
General Meeting of Suominen Corporation is planned to be held on
March 24, 2022 without the presence of the shareholders or their
proxy representatives. The Board of Directors will convene the
Annual General Meeting by issuing a Notice to the Annual General
Meeting as a Stock Exchange Release. The notice to the Annual
General Meeting will also be published at
www.suominen.fi.EVENTS AFTER THE REPORTING
PERIOD
Notification of change in holdings according to chapter
9, section 10 of the Securities Market ActSuominen
received a notification on January 19, 2022 referred to
in Chapter 9, Section 5 and 6 of the Securities Market Act.
According to the notification, the shareholding of Ilmarinen
Mutual Pension Insurance Company in Suominen
Corporation has fallen below the threshold of 5%.
Proposals by the Nomination Board to the Annual General
Meeting 2022 of Suominen
Proposal on the number of the members, on the composition, and
on the Chair of the Board of Directors
The Nomination Board of Suominen Corporation’s shareholders
proposes to the Annual General Meeting that the number of Board
members remains unchanged and would be six (6).
The Nomination Board proposes to the Annual General Meeting that
Andreas Ahlström, Björn Borgman, Jaakko Eskola, Nina Linander and
Laura Raitio would be re-elected as members of Suominen
Corporation’s Board of Directors.
Out of the current Board members, Sari Pajari-Sederholm has
informed that she is not available as a candidate for the Board of
Directors.
In addition, the Nomination Board proposes that Aaron Barsness
would be elected as a new member of the Board of Directors.
Mr. Aaron Barsness (born 1973, BA (Biology and Environmental
Studies), U.S. and Swedish citizen) currently works as the CMO of
Fazer Group. He has held a number of senior positions at Fazer,
Lynxeye Brand Consultants and Procter & Gamble.
All candidates have given their consent to the election. All
candidates are independent of the company. The candidates are also
independent of Suominen’s significant shareholders, with the
exception of Andreas Ahlström who acts currently as Investment
Director at Ahlström Capital Oy. The largest shareholder of
Suominen Corporation, Ahlstrom Capital B.V. is a group company of
Ahlström Capital Oy. The candidate information relevant considering
their service for the Board of Directors is presented at the
company website www.suominen.fi.
The Nomination Board proposes to the Annual General Meeting that
Mr. Jaakko Eskola would be re-elected as the Chair of the Board of
Directors.
With regard to the selection procedure for the members of the
Board of Directors, the Nomination Board recommends that
shareholders take a position on the proposal as a whole at the
Annual General Meeting. In preparing its proposals the Nomination
Board, in addition to ensuring that individual nominees for
membership of the Board of Directors possess the required
competences, has determined that the proposed Board of Directors as
a whole also has the best possible expertise for the company and
that the composition of the Board of Directors meets other
requirements of the Finnish Corporate Governance Code for listed
companies.
Proposal on the Board remuneration
The Nomination Board of the shareholders of Suominen Corporation
proposes to the Annual General Meeting that the remuneration of the
Board of Directors would be as follows: the Chair would be paid an
annual fee of EUR 70,000 (2021: EUR 66,000) and the Deputy Chair
and other Board members an annual fee of EUR 33,000 (2021: EUR
31,000). The Nomination Board also proposes that the additional fee
paid to the Chair of the Audit Committee would remain unchanged and
be EUR 10,000.
Further, the Nomination Board proposes that the fees payable for
each Board and Committee meeting would remain unchanged and be 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 attended by telephone or other electronic means. No fee is
paid for decisions made without convening a meeting.
75% (2021: 60%) of the annual fees is paid in cash and 25%
(2021: 40%) in Suominen Corporation’s shares. The shares will be
transferred out of the own shares held by the company by the
decision of the Board of Directors within two weeks from the date
on which the interim report of January-March 2022 of the company is
published. Compensation for expenses will be paid in accordance
with the company's valid travel policy.
The composition of the Nomination Board
The members of the Nomination Board are, as of September 2,
2021, Lasse Heinonen, President & CEO of Ahlström Capital Oy,
as a member appointed by Ahlstrom Capital B.V., Mikael Etola, CEO,
Etola Group, as a member appointed by Oy Etra Invest Ab and 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. Lasse Heinonen acts as the Chair of the
Nomination Board.
All of the proposals made by the Nomination Board were
unanimous.
Suominen completes the repurchases of own
shares
As communicated on November 1, 2021, the Board of Directors of
Suominen Corporation decided to use the authorization given by the
Annual General Meeting held on March 25, 2021 to repurchase the
company’s own shares.
The repurchases started on November 3, 2021 and ended on January
21, 2022. During this period, Suominen repurchased 400,000 shares
for an average price of EUR 4.9796 per share, corresponding to
approximately 0.7% of the total number of the company’s shares,
which is 58,259,219.
The repurchased shares are to be used for pay-outs under the
share-based incentive plans of Suominen Corporation. The shares
were repurchased through public trading on Nasdaq Helsinki at the
market price prevailing at the time of repurchase.
Following the repurchases, the company holds a total of
1,034,661 shares.
The Board of Directors of Suominen Corporation resolved
on a new share-based Long-Term Incentive Plan for management and
key employees
The Board of Directors of Suominen Corporation has resolved on
February 2, 2022 on a new share-based Long-Term Incentive Plan for
the management and key employees. The aim of the new 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 the long-term, to bind the participants to the Company,
and to offer them competitive reward plans based on earning and
accumulating the Company’s shares.
Performance Share Plan 2022–2024
The new long-term Performance Share Plan has one three-year
Performance Period, which includes calendar years 2022–2024. The
Performance Share Plan is directed to approximately 25 people
including the President & CEO of Suominen.
The Board of Directors resolved that the potential reward for
the Performance Period 2022–2024 will be based on the Relative
Total Shareholder Return (TSR). The maximum total amount of
potential share rewards to be paid on the basis of the Performance
Period 2022–2024 is approximately 401 000 shares of Suominen
Corporation, representing the gross reward before the deduction of
taxes and tax-related costs arising from the reward.
The Board of Directors will be entitled to reduce the rewards
agreed in the Performance Share Plan if the limits set by the Board
of Directors for the share price are reached.
Reward payment and ownership obligation for the management
If the targets of the Plan are reached, rewards will be paid to
participants in spring 2025 after the end of the Performance
Period. The potential rewards from the Performance Period 2022–2024
will be paid partly in the Company’s shares and partly in cash. The
cash proportion is intended to cover taxes and tax-related costs
arising from the reward to the participant. The Company also has
the right to pay the reward fully in cash under certain
circumstances. As a rule, no reward will be paid, if a
participant’s employment or service ends before the reward
payment.
A member of the Executive Team must hold 50 per cent 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. The President & CEO of the Company
must hold 50 per cent 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. Such
number of shares must be held as long as the participant’s
employment or service in a group company continues.
THE NEXT FINANCIAL
REPORT Suominen Corporation will publish its Interim
Report for January–March 2022 on Wednesday, May 4,
2022.ANALYST AND NEWS
CONFERENCE Petri Helsky, President & CEO, and
Toni Tamminen, CFO, will present the financial result in English in
an audiocast and a conference call for analyst, investors and media
on February 3, 2022 at 11:00 a.m. (EET).
The audiocast can be followed
at https://suominen.videosync.fi/2021-q4-results/register.
Recording of the audiocast and the presentation material will be
available after the event at suominen.fi.
Conference call participants are requested to dial on:Sweden
Toll: +46 856 642 651 United Kingdom Toll:
+44 333 300 0804 United States Toll:
+1 631 913 1422 The confirmation code for joining
the conference call is 75190314#.
The event cannot be attended on the spot.
SUOMINEN GROUP
JANUARY 1 –
DECEMBER 31,
2021The
consolidated financial statements of Suominen have been audited.
The Auditor’s report has been signed on February 2, 2022. Quarterly
information, half-year report and interim reports have not been
audited. As result of rounding differences, the figures presented
in the tables do not necessarily add up to total.
ACCOUNTING PRINCIPLESThe consolidated financial
statements of Suominen Group are prepared in accordance with
International Financial Reporting Standards (IFRS), including
International Accounting Standards (IAS) and Interpretations issued
by the International Financial Reporting Interpretations Committee
(SIC and IFRIC). International Financial Reporting Standards are
standards and their interpretations adopted in accordance with the
procedure laid down in regulation (EC) No 1606/2002 of the European
Parliament and of the Council. The Notes to the Financial
Statements are also in accordance with the Finnish Accounting Act
and Ordinance and the Finnish Companies' Act.This financial
statement release has been prepared in accordance with the
principles defined in IAS 34 Interim Financial Reporting as
approved by the European Union. Financial statement release does
not include all information required for full financial statements.
The principles for preparing consolidated financial statements are
the same as those used for preparing the consolidated financial
statements for 2020 as the new or amended standard, annual
improvements or interpretations applicable from January 1, 2021
were not material for Suominen Group.
New and amended IFRS standards and IFRIC interpretations
published but mandatory from January 1, 2022 or later:
- Improvements to IFRS (2018–2020 cycle): Improvement to IFRS 9
– Fees in the "10 percent" Test for Derecognition of Financial
Liabilities, applicable from January 1, 2022. The amendment
clarifies the fees that an entity includes when assessing whether
the terms of a new or modified financial liability are
substantially different from the terms of the original financial
liability. The fees include only fees paid or received between the
borrower and the lender.
- Amendments to IAS 37: Onerous Contracts – Costs of Fulfilling
a Contract, applicable from January 1, 2022. The amendment
specifies which costs need to be included and which cannot be
included in the provision when assessing whether a contract is
onerous or loss-making. The amendment applies a directly related
cost approach, which means that general and administrative are in
most cases excluded from the provisions made of onerous contracts.
The amendments must be applied prospectively. The amendment does
not change the accounting for onerous contracts in Suominen's
financial statements.
- Amendments to IAS 16 – Property, Plant and Equipment: Proceeds
before Intended Use, applicable from January 1, 2022. The amendment
prohibits companies deducting from the acquisition cost of an item
of property, plant and equipment any proceeds of the sale of items
produced while bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended
by management. The sales proceeds of producing such items as well
as the expenses to producing the items are to be recognized in
profit or loss. The amendment is to be applied retrospectively. For
Suominen, the amendment does not result in any restatement of
previously published figures.
- Amendments to IAS 1 – Classification of Liabilities as Current
or Non-current, applicable from January 1, 2023. The amendment
specifies the requirements for classifying liabilities as current
or non-current, by clarifying for example what is meant by a right
to defer settlement, that a right to defer must exist at the end of
the reporting period and that classification is unaffected by the
likelihood that an entity will exercise its deferral right. The
amendment will be applied retrospectively. The amendment does not
have any effect on the consolidated financial statements of
Suominen.
- Disclosure of Accounting Policies – Amendments to IAS 1 and
IFRS Practice Statement 2, applicable from January 1, 2023. The
amendment replaces the requirement to disclose "significant"
accounting policies with a requirement to disclose "material"
accounting policies. The amendment aims to help companies to
disclose accounting policies, which are material for users to
understand the information in the company's financial statements.
The amendments require judgement in determining whether accounting
policies are material or not. The amendment may have some effect on
the disclosure of accounting policies in Suominen's consolidated
financial statements, as the accounting principles presented in the
consolidated financial statements will concentrate on presenting
the accounting principles, which are material for Suominen.
- Definition of Accounting Estimates – Amendments to IAS 8,
applicable from January 1, 2023. The amendments clarify the
distinction between the changes in accounting estimates and changes
in accounting policies and the correction of errors. The amendment
clarifies that the effects on an accounting estimate of a change in
an input or a change in a measurement technique are changes in
accounting estimates if they do not result from the correction of
prior period errors. The amendment does not have any material
impact on Suominen's consolidated financial statements.
- Amendments to IAS 12 – Deferred Tax Related to Assets and
Liabilities Arising from a Single Transaction, applicable from
January 1, 2023. The amendments are to be applied to transactions
that occur on or after the beginning of the earliest comparative
period presented in the financial statements.
The amendment narrowed the scope of the initial recognition
exception under IAS 12, so that it no longer applies to taxable and
deductible temporary differences. The amendment clarifies deferred
tax accounting for transactions and events, such as leases and
decommissioning obligations that lead to the initial recognition of
both an asset and a liability. The amendments require companies to
recognize a separate deferred tax asset and deferred tax liability
when the temporary differences arising on the initial recognition
of an asset and a liability are equal.
As in the most cases the deferred tax assets and liabilities
arising from recognition of leases can be offset with each other,
the amendment has not material effect on the consolidated statement
of financial position of Suominen. The amendment will, however,
change the disclosure information in the consolidated financial
statements related to the deferred taxes.
Other new or amended standards, improvements or annual
improvements applicable from January 1, 2022 or later are not
material for Suominen Group.
STATEMENT OF FINANCIAL POSITION
| |
|
|
|
EUR thousand |
31.12.2021 |
31.12.2020 |
|
Assets |
|
|
|
Non-current assets |
|
|
| Goodwill |
15,496 |
15,496 |
| Intangible
assets |
13,176 |
16,748 |
| Property,
plant and equipment |
115,478 |
104,666 |
| Right-of-use
assets |
15,741 |
17,784 |
| Loan
receivables |
− |
3,978 |
| Equity
instruments |
421 |
768 |
| Other
non-current receivables |
96 |
73 |
|
Deferred tax assets |
1,668 |
4,034 |
|
Total non-current assets |
162,077 |
163,548 |
|
|
|
|
|
Current assets |
|
|
|
Inventories |
49,763 |
35,431 |
| Trade
receivables |
65,495 |
51,128 |
| Loan
receivables |
− |
3,476 |
| Other current
receivables |
5,403 |
5,675 |
| Assets for
current tax |
2,564 |
247 |
|
Cash and cash equivalents |
101,357 |
57,877 |
|
Total current assets |
224,583 |
153,833 |
|
|
|
|
|
Total assets |
386,660 |
317,381 |
|
|
|
|
| Equity
and liabilities |
|
|
|
Equity |
|
|
| Share
capital |
11,860 |
11,860 |
| Share premium
account |
24,681 |
24,681 |
| Reserve for
invested unrestricted equity |
75,692 |
81,361 |
| Treasury
shares |
− |
-44 |
| Fair value and
other reserves |
-7 |
-7 |
| Exchange
differences |
-5,577 |
-13,933 |
|
Retained earnings |
56,549 |
41,962 |
|
Total equity attributable to owners of the
parent |
163,199 |
145,882 |
|
|
|
|
|
Liabilities |
|
|
|
Non-current liabilities |
|
|
| Deferred tax
liabilities |
13,931 |
13,320 |
| Liabilities
from defined benefit plans |
638 |
774 |
| Non-current
provisions |
1,916 |
1,797 |
| Non-current
lease liabilities |
13,167 |
14,892 |
| Other
non-current liabilities |
3 |
17 |
|
Debentures |
49,144 |
82,862 |
| Total
non-current liabilities |
78,799 |
113,662 |
|
|
|
|
|
Current liabilities |
|
|
| Current
provisions |
− |
250 |
| Current lease
liabilities |
2,761 |
2,539 |
| Debenture
bonds |
84,062 |
− |
| Liabilities
for current tax |
669 |
415 |
|
Trade payables and other current liabilities |
57,170 |
54,634 |
| Total current
liabilities |
144,662 |
57,838 |
|
|
|
|
|
Total liabilities |
223,461 |
171,499 |
|
|
|
|
|
Total equity and liabilities |
386,660 |
317,381 |
STATEMENT OF PROFIT OR LOSS
|
|
|
|
|
|
|
EUR thousand |
10-12/2021 |
10-12/2020 |
1-12/2021 |
1-12/2020 |
| Net
sales |
115,585 |
111,086 |
443,219 |
458,893 |
|
Cost of goods sold |
-107,170 |
-93,803 |
-392,390 |
-389,123 |
| Gross
profit |
8,415 |
17,283 |
50,828 |
69,770 |
| Other
operating income |
2,030 |
553 |
4,434 |
2,584 |
| Sales,
marketing and administration expenses |
-6,676 |
-7,206 |
-26,238 |
-27,946 |
| Research and
development expenses |
-806 |
-636 |
-2,678 |
-2,767 |
|
Other operating expenses |
912 |
-1,465 |
595 |
-2,150 |
|
Operating profit |
3,874 |
8,530 |
26,941 |
39,492 |
|
Net financial expenses |
-1,074 |
-64 |
-390 |
-5,582 |
| Profit
before income taxes |
2,800 |
8,466 |
26,551 |
33,910 |
|
Income taxes |
-263 |
-1,172 |
-5,816 |
-3,794 |
|
Profit for the period |
2,537 |
7,294 |
20,734 |
30,116 |
|
|
|
|
|
|
|
Earnings per share, EUR |
|
|
|
|
| Basic |
0.04 |
0.13 |
0.36 |
0.52 |
|
Diluted |
0.04 |
0.13 |
0.36 |
0.52 |
STATEMENT OF COMPREHENSIVE INCOME
|
EUR thousand |
10-12/2021 |
10-12/2020 |
1-12/2021 |
1-12/2020 |
|
|
|
|
|
|
| Profit
for the period |
2,537 |
7,294 |
20,734 |
30,116 |
|
|
|
|
|
|
| Other
comprehensive income: |
|
|
|
|
| Other
comprehensive income that will be subsequently reclassified to
profit or loss |
|
|
|
|
| Exchange
differences |
2,446 |
-6,252 |
9,137 |
-15,504 |
| Reclassified
to profit or loss |
− |
− |
− |
-327 |
|
Income taxes related to other comprehensive income |
-222 |
450 |
-781 |
929 |
|
Total |
2,224 |
-5,802 |
8,356 |
-14,902 |
| Other
comprehensive income that will not be subsequently reclassified to
profit or loss |
|
|
|
|
| Fair value
changes of equity instruments |
− |
-8 |
− |
-8 |
| Remeasurements
of defined benefit plans |
26 |
-10 |
26 |
-10 |
|
Income taxes related to other comprehensive income |
-7 |
3 |
-7 |
3 |
|
Total |
19 |
-15 |
19 |
-15 |
|
|
|
|
|
|
| Total
other comprehensive income |
2,243 |
-5,817 |
8,375 |
-14,917 |
|
|
|
|
|
|
|
Total comprehensive income for the period |
4,781 |
1,477 |
29,109 |
15,199 |
STATEMENT OF CHANGES IN EQUITY
|
EUR thousand |
Share capital |
Share premium account |
Reserve for invested unrestricted equity |
Treasury shares |
|
Equity 1.1.2021 |
11,860 |
24,681 |
81,361 |
-44 |
| Profit for the
period |
− |
− |
− |
− |
|
Other comprehensive income |
− |
− |
− |
− |
| Total
comprehensive income |
− |
− |
− |
− |
| Distribution of
dividend and return of capital |
− |
− |
-5,759 |
− |
| Share-based
payments |
− |
− |
− |
− |
| Acquisition of
treasury shares |
− |
− |
− |
− |
| Conveyance of
treasury shares |
− |
− |
90 |
44 |
|
Equity 31.12.2021 |
11,860 |
24,681 |
75,692 |
− |
|
EUR thousand |
Exchange differences |
Fair value and other reserves |
Retained earnings |
Total equity attributable to owners of the parent |
|
Equity 1.1.2021 |
-13,933 |
-7 |
41,962 |
145,882 |
| Profit for the
period |
− |
− |
20,734 |
20,734 |
|
Other comprehensive income |
8,356 |
− |
19 |
8,375 |
| Total
comprehensive income |
8,356 |
− |
20,754 |
29,109 |
| Distribution of
dividend and return of capital |
− |
− |
-5,759 |
-11,519 |
| Share-based
payments |
− |
− |
1,276 |
1,276 |
| Acquisition of
treasury shares |
− |
− |
-1,640 |
-1,640 |
| Conveyance of
treasury shares |
− |
− |
-44 |
90 |
|
Equity 31.12.2021 |
-5,577 |
-7 |
56,549 |
163,199 |
|
EUR thousand |
Share capital |
Share premium account |
Reserve for invested unrestricted equity |
Treasury shares |
|
Equity 1.1.2020 |
11,860 |
24,681 |
81,269 |
-44 |
| Profit for the
period |
− |
− |
− |
− |
|
Other comprehensive income |
− |
− |
− |
− |
| Total
comprehensive income |
− |
− |
− |
− |
| Distribution
of dividend |
− |
− |
− |
− |
| Share-based
payments |
− |
− |
− |
− |
| Conveyance of
treasury shares |
− |
− |
92 |
− |
|
Equity 31.12.2020 |
11,860 |
24,681 |
81,361 |
-44 |
|
EUR thousand |
Exchange differences |
Fair value and other reserves |
Retained earnings |
Total equity attributable to owners of the parent |
|
Equity 1.1.2020 |
707 |
264 |
13,715 |
132,452 |
| Profit for the
period |
− |
− |
30,116 |
30,116 |
|
Other comprehensive income |
-14,640 |
-270 |
-7 |
-14,917 |
| Total
comprehensive income |
-14,640 |
-270 |
30,109 |
15,199 |
| Distribution of
dividend |
− |
− |
-2,876 |
-2,876 |
| Share-based
payments |
− |
− |
1,015 |
1,015 |
| Conveyance of
treasury shares |
− |
− |
− |
92 |
|
Equity 31.12.2020 |
-13,933 |
-7 |
41,962 |
145,882 |
STATEMENT OF CASH FLOWS
|
EUR thousand |
1-12/2021 |
1-12/2020 |
|
|
|
|
| Cash
flow from operations |
|
|
| Profit for the
period |
20,734 |
30,116 |
|
Total adjustments to profit for the period |
27,585 |
34,626 |
| Cash flow
before changes in net working capital |
48,319 |
64,742 |
| Change in net
working capital |
-25,242 |
-1,023 |
| Financial
items |
-5,258 |
-4,289 |
|
Income taxes |
-6,731 |
-2,438 |
| Cash
flow from operations |
11,088 |
56,991 |
|
|
|
|
| Cash
flow from investments |
|
|
| Investments in
property, plant and equipment and intangible assets |
-17,628 |
-10,885 |
| Sales proceeds
from property, plant and equipment and intangible assets |
4 |
12 |
|
Sales proceeds from sale of equity investments |
2,170 |
− |
| Cash
flow from investments |
-15,454 |
-10,873 |
|
|
|
|
| Cash
flow from financing |
|
|
| Drawdown of
non-current interest-bearing liabilities |
50,000 |
− |
| Issuance costs
of the bonds |
-939 |
− |
| Drawdown of
current interest-bearing liabilities |
− |
15,000 |
| Repayment of
current interest-bearing liabilities |
-2,757 |
-31,968 |
| Repayment of
loan receivables |
9,301 |
− |
| Acquisition of
treasury shares |
-1,612 |
− |
|
Dividends and return of capital paid |
-11,520 |
-2,876 |
| Cash
flow from financing |
42,473 |
-19,845 |
|
|
|
|
| Change
in cash and cash equivalents |
38,106 |
26,274 |
|
|
|
|
| Cash and cash
equivalents at the beginning of the period |
57,877 |
37,741 |
| Effect of
changes in exchange rates |
5,374 |
-6,138 |
|
Change in cash and cash equivalents |
38,106 |
26,274 |
|
Cash and cash equivalents at the end of the
period |
101,357 |
57,877 |
KEY RATIOS
|
|
10-12/2021 |
10-12/2020 |
1-12/2021 |
1-12/2020 |
| Change in net
sales, % * |
4.1 |
17.6 |
-3.4 |
11.5 |
| Gross profit,
as percentage of net sales, % |
7.3 |
15.6 |
11.5 |
15.2 |
| Comparable
EBITDA, as percentage of net sales, % |
7.8 |
12.2 |
10.6 |
13.3 |
| Operating
profit, as percentage of net sales, % |
3.4 |
7.7 |
6.1 |
8.6 |
| Net financial
items, as percentage of net sales, % |
-0.9 |
-0.1 |
-0.1 |
-1.2 |
| Profit before
income taxes, as percentage of net sales, % |
2.4 |
7.6 |
6.0 |
7.4 |
| Profit for the
period, as percentage of net sales, % |
2.2 |
6.6 |
4.7 |
6.6 |
| Gross capital
expenditure, EUR thousand |
3,755 |
5,539 |
17,771 |
10,406 |
| Depreciation
and amortization, EUR thousand |
5,108 |
5,017 |
20,092 |
21,432 |
| Return on
equity, rolling 12 months, % |
− |
− |
13.3 |
21.6 |
| Return on
invested capital, rolling 12 months, % |
− |
− |
9.5 |
16.7 |
| Equity ratio,
% |
− |
− |
42.2 |
46.0 |
| Gearing,
% |
− |
− |
30.4 |
25.4 |
| Average number
of personnel (FTE – full time equivalent) |
− |
− |
709 |
689 |
| Earnings per
share, EUR, basic |
0.04 |
0.13 |
0.36 |
0.52 |
| Earnings per
share, EUR, diluted |
0.04 |
0.13 |
0.36 |
0.52 |
| Cash flow from
operations per share, EUR |
0.05 |
0.31 |
0.19 |
0.99 |
| Equity per
share, EUR |
− |
− |
2.85 |
2.53 |
| Dividend and
return of capital per share, EUR |
− |
− |
0.20 |
0.20 |
| Price per
earnings per share (P/E) ratio |
− |
− |
14.38 |
9.71 |
| Dividend
payout ratio, % |
− |
− |
55.5 |
38.2 |
| Dividend
yield, % |
− |
− |
3.86 |
3.94 |
| Number of
shares, end of period, excluding treasury shares |
− |
− |
57,293,235 |
57,568,341 |
| Share price,
end of period, EUR |
− |
− |
5.18 |
5.08 |
| Share price,
period low, EUR |
− |
− |
4.25 |
2.00 |
| Share price,
period high, EUR |
− |
− |
6.41 |
5.36 |
| Volume
weighted average price during the period, EUR |
− |
− |
5.48 |
4.29 |
| Market
capitalization, EUR million |
− |
− |
296.8 |
292.4 |
| Number of
traded shares during the period |
− |
− |
17,714,203 |
12,937,753 |
| Number of
traded shares during the period, % of average number of shares |
− |
− |
30.8 |
22.5 |
| |
|
|
31.12.2021 |
31.12.2020 |
|
Interest-bearing net debt, EUR thousands |
|
|
|
|
| Non-current
interest-bearing liabilities, nominal value |
|
|
63,167 |
99,892 |
| Current
interest-bearing liabilities, nominal value |
|
|
87,761 |
2,539 |
|
Interest-bearing receivables and cash and cash equivalents |
|
|
-101,357 |
-65,331 |
|
Interest-bearing net debt |
|
|
49,570 |
37,101 |
| * Compared
with the corresponding period in the previous year. |
| ** Dividend
per share 2021 is the proposal by the Board of Directors. |
CALCULATION OF KEY
RATIOSKey ratios per share
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).
Earnings per share
Basic earnings per share are calculated by dividing the net
result attributable to owners of the parent by the weighted
share-issue adjusted average number of shares outstanding during
the reporting period, excluding shares acquired by the Group and
held as treasury
shares. When
calculating diluted earnings per share the number of shares is
adjusted with the effects of the share-based incentive
plans.
|
EUR thousand |
|
31.12.2021 |
31.12.2020 |
|
Profit for the period |
|
20,734 |
30,116 |
|
|
|
|
|
| |
|
|
|
| Average
share-issue adjusted number of shares |
|
57,579,440 |
57,549,842 |
| Average diluted
share-issue adjusted number of shares excluding treasury
shares |
|
58,023,347 |
57,796,591 |
|
|
|
|
|
|
Earnings per share |
|
|
|
| |
|
|
|
|
EUR |
|
|
|
| Basic |
|
0.36 |
0.52 |
|
Diluted |
|
0.36 |
0.52 |
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 |
|
|
|
2021 |
2020 |
| Cash flow from
operations, EUR thousand |
|
11,088 |
56,991 |
|
Share-issue adjusted number of shares excluding treasury shares,
end of the reporting period |
|
57,293,235 |
57,568,341 |
|
Cash flow from operations per share, EUR |
|
0.19 |
0.99 |
Equity per share
|
Equity per share |
|
Total equity attributable to owners of the parent |
|
|
= |
Share-issue adjusted
number of shares excluding treasury shares, end of reporting
period |
| |
|
|
|
|
|
|
|
|
2021 |
2020 |
| Total equity
attributable to owners of the parent, EUR thousand |
|
163,199 |
145,882 |
|
Share-issue adjusted number of shares excluding treasury shares,
end of the reporting period |
|
57,293,235 |
57,568,341 |
|
Equity per share, EUR |
|
2.85 |
2.53 |
Dividend payout ratio, %
|
Dividend payout ratio, % |
|
Dividend and return of capital per share x 100 |
|
= |
Basic earnings
per share |
|
|
|
2021 |
2020 |
| Dividend and
return of capital per share x 100 |
|
20.00 |
20.00 |
|
Basic earnings per share, EUR |
0.36 |
0.52 |
|
Dividend payout ratio, % |
|
55.5 |
38.2 |
Dividend yield,
%
|
Dividend yield, % |
= |
Dividend and return of capital per share x 100 |
| |
Share price at end of the period |
|
|
|
2021 |
2020 |
| Dividend and
return of capital per share x 100 |
|
20.00 |
20.00 |
|
Share price at end of the period, EUR |
5.18 |
5.08 |
|
Dividend yield, % |
|
3.86 |
3.94 |
Price per earnings per share (P/E)
| Price
per earnings per share (P/E) |
|
Share price at end of the period |
| = |
Basic earnings
per share |
|
|
|
2021 |
2020 |
| Share price at
end of the period, EUR |
|
5.18 |
5.08 |
|
Basic earnings per share, EUR |
0.36 |
0.52 |
|
Price per earnings per share (P/E) |
|
14.38 |
9.71 |
Market capitalization
| Market
capitalization |
= |
Number of
shares at the end of reporting period excluding treasury shares x
share price at the end of period |
|
|
|
2021 |
2020 |
| Number of
shares at the end of reporting period excluding treasury
shares |
|
57,293,235 |
57,568,341 |
|
Share price at end of the period, EUR |
5.18 |
5.08 |
|
Market capitalization, EUR million |
|
296.8 |
292.4 |
Share turnover
| Share
turnover |
= |
The proportion
of number of shares traded during the period to weighted average
number of shares excluding treasury shares |
|
|
|
2021 |
2020 |
| Number of
shares traded during the period |
|
17,714,203 |
12,937,753 |
|
Average number of shares excluding treasury shares |
57,579,440 |
57,549,842 |
|
Share turnover, % |
|
30.8 |
22.5 |
Alternative performance measures
Some of Suominen's key ratios 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 comparison
between the reporting periods.
Operating profit and comparable operating
profit
Operating profit, or earnings before interest and taxes (EBIT)
is an important measure of profitability as by ignoring income
taxes and financial items it focuses solely on the company's
ability to generate profit from operations. Operating profit is
presented as a separate line item in the consolidated statement of
profit or loss.
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.
| 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 |
EBITDA and comparable
EBITDA
EBITDA is an important measure that focuses on the operating
performance excluding the effect of depreciation and amortization,
financial items and income taxes, in other words what is the margin
on net sales after deducting operating expenses.
| EBITDA |
= |
EBIT +
depreciation, amortization and impairment losses |
| Comparable
EBITDA |
= |
EBIT +
depreciation, amortization and impairment losses, adjusted with
items affecting comparability |
|
EUR thousand |
|
2021 |
2020 |
| Operating
profit |
|
26,941 |
39,492 |
|
+ Depreciation, amortization and impairment losses |
20,092 |
21,432 |
|
EBITDA |
|
47,033 |
60,924 |
Gross capital expenditure
Suominen considers gross capital expenditure as a relevant
measure in order to understand for example how the Group maintains
and renews its production machinery and facilities. Gross capital
expenditure includes also capitalized borrowing costs and
capitalized cash flow hedges. Gross capital expenditure (gross
investments) does not include increases in right-of-use assets.
|
EUR thousand |
|
2021 |
2020 |
| Increases in
intangible assets |
|
162 |
306 |
|
Increases in property, plant and equipment |
17,609 |
10,100 |
|
Gross capital expenditure |
|
17,771 |
10,406 |
Interest-bearing net debt
Suominen considers interest-bearing net debt to be an important
measure for investors to be able to understand the Group’s
indebtedness. 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 |
|
2021 |
2020 |
|
Interest-bearing liabilities |
|
149,134 |
100,293 |
| Tender and
issuance costs of the debentures |
|
1,794 |
2,138 |
| Interest
bearing receivables |
|
− |
-7,454 |
|
Cash and cash equivalents |
-101,357 |
-57,877 |
|
Interest-bearing net debt |
|
49,570 |
37,101 |
|
|
|
|
|
|
Interest-bearing liabilities |
|
149,134 |
100,293 |
|
Tender and issuance costs of the debentures |
|
1,794 |
2,138 |
|
Nominal value of interest-bearing liabilities |
|
150,927 |
102,431 |
Return on equity (ROE), %
The return on equity is one of the most important profitability
ratios used by owners and investors. The ratio measures the ability
of a company to generate profits from its shareholders' investments
in the company and it defines the yield on the company's equity
during the reporting period.
| Return on equity
(ROE), % |
= |
Profit for the reporting period (rolling 12 months) x 100 |
| |
|
Total equity
attributable to owners of the parent (quarterly average) |
|
EUR thousand |
|
31.12.2021 |
31.12.2020 |
| Profit for the
reporting period (rolling 12 months) |
|
20,734 |
30,116 |
|
|
|
|
|
| Total equity
attributable to owners of the parent 31.12.2020 / 2019 |
|
145,882 |
132,452 |
| Total equity
attributable to owners of the parent 31.3.2021 / 2020 |
|
152,227 |
135,868 |
| Total equity
attributable to owners of the parent 30.6.2021 / 2020 |
|
159,386 |
138,551 |
| Total equity
attributable to owners of the parent 30.9.2021 / 2020 |
|
159,682 |
144,074 |
|
Total equity attributable to owners of the parent 31.12.2021 /
2020 |
|
163,199 |
145,882 |
| Average |
|
156,075 |
139,365 |
|
|
|
|
|
|
Return on equity (ROE), % |
|
13.3 |
21.6 |
Invested capital
| Invested
capital |
= |
Total equity
attributable to owners of the parent + interest-bearing
liabilities |
|
EUR thousand |
|
31.12.2021 |
31.12.2020 |
| Total equity
attributable to owners of the parent |
|
163,199 |
145,882 |
|
Interest-bearing liabilities |
|
149,134 |
100,293 |
|
Invested capital |
|
312,333 |
246,175 |
Return on invested capital (ROI), %
Return on invested capital is one of the most important key
ratios. It measures the relative profitability of the company, ie.
the yield on the capital invested in the company.
| Return on
invested capital (ROI), % |
= |
Operating profit + financial income (rolling 12 months) x 100 |
| |
|
Invested
capital, quarterly average |
|
EUR thousand |
|
31.12.2021 |
31.12.2020 |
| Operating
profit (rolling 12 months) |
|
26,941 |
39,492 |
|
Financial income (rolling 12 months) |
|
209 |
925 |
| Total |
|
27,150 |
40,416 |
|
|
|
|
|
| Invested
capital 31.12.2020 / 2019 |
|
246,175 |
241,615 |
| Invested
capital 31.3.2021 / 2020 |
|
252,608 |
240,761 |
| Invested
capital 30.6.2021 / 2020 |
|
308,615 |
238,195 |
| Invested
capital 30.9.2021 / 2020 |
|
308,968 |
240,368 |
|
Invested capital 31.12.2021 / 2020 |
|
312,333 |
246,175 |
| Average |
|
285,740 |
241,423 |
|
|
|
|
|
|
Return on invested capital (ROI), % |
|
9.5 |
16.7 |
Financial income does not include fair value changes.
Equity ratio, %
Equity ratio is an important key ratio as it measures the
solidity of the company, the company's tolerance for losses and
ability to cover its long-term commitments. The performance measure
shows how much of the company's assets are financed with equity.
The equity creates a buffer against potential losses, and equity
ratio represents the level of this buffer.
| Equity ratio,
% |
= |
Total equity attributable to owners of the parent x 100 |
| |
|
Total assets -
advances received |
| |
|
|
|
EUR thousand |
|
31.12.2021 |
31.12.2020 |
| Total equity
attributable to owners of the parent |
|
163,199 |
145,882 |
|
|
|
|
|
| Total
assets |
|
386,660 |
317,381 |
|
Advances received |
|
-75 |
-23 |
|
|
|
386,584 |
317,358 |
|
|
|
|
|
|
Equity ratio, % |
|
42.2 |
46.0 |
Gearing, %
Gearing represents the ratio between the equity invested by the
owners of the company and the interest-bearing liabilities borrowed
from financiers. Gearing is an important performance measure in
assessing the financial position of a company. A high gearing is a
risk factor which might limit the possibilities for growth of a
company and narrow its financial freedom.
| Gearing,
% |
= |
Interest-bearing net debt x 100 |
| |
|
Total equity
attributable to owners of the parent |
|
EUR thousand |
|
31.12.2021 |
31.12.2020 |
| Interest-bearing
net debt |
|
49,570 |
37,101 |
| Total equity
attributable to owners of the parent |
|
163,199 |
145,882 |
|
Gearing, % |
|
30.4 |
25.4 |
NET SALES BY GEOGRAPHICAL MARKET AREA
|
|
2021 |
2020 |
| Finland |
2,707 |
3,180 |
| Rest of
Europe |
168,841 |
156,060 |
| Americas |
269,247 |
295,975 |
| Rest of the
world |
2,424 |
3,678 |
|
Total |
443,219 |
458,893 |
QUARTERLY DEVELOPMENT
| |
|
2021 |
|
|
2020 |
|
EUR thousand |
10-12 |
7-9 |
4-6 |
1-3 |
10-12 |
7-9 |
4-6 |
1-3 |
|
Net sales |
115,585 |
98,654 |
113,647 |
115,333 |
111,086 |
115,435 |
122,170 |
110,203 |
|
Comparable EBITDA |
8,983 |
4,240 |
15,277 |
18,534 |
13,546 |
18,107 |
17,989 |
11,282 |
|
as % of net sales |
7.8 |
4.3 |
13.4 |
16.1 |
12.2 |
15.7 |
14.7 |
10.2 |
|
EBITDA |
8,983 |
4,240 |
15,277 |
18,534 |
13,546 |
18,107 |
17,989 |
11,282 |
|
as % of net sales |
7.8 |
4.3 |
13.4 |
16.1 |
12.2 |
15.7 |
14.7 |
10.2 |
|
Items affecting comparability |
− |
− |
− |
− |
− |
− |
− |
− |
|
Operating profit |
3,874 |
-842 |
10,317 |
13,592 |
8,530 |
12,907 |
12,391 |
5,664 |
|
as % of net sales |
3.4 |
-0.9 |
9.1 |
11.8 |
7.7 |
11.2 |
10.1 |
5.1 |
|
Net financial items |
-1,074 |
-969 |
-1,613 |
3,266 |
-64 |
-1,761 |
-1,813 |
-1,945 |
|
Profit before income taxes |
2,800 |
-1,811 |
8,704 |
16,858 |
8,466 |
11,146 |
10,579 |
3,719 |
|
as % of net sales |
2.4 |
-1.8 |
7.7 |
14.6 |
7.6 |
9.7 |
8.7 |
3.4 |
QUARTERLY SALES BY BUSINESS AREA
| |
2021 |
2020 |
|
EUR thousand |
10-12 |
7-9 |
4-6 |
1-3 |
10-12 |
7-9 |
4-6 |
1-3 |
| Americas |
68,858 |
57,048 |
67,402 |
71,904 |
66,829 |
71,947 |
77,162 |
73,170 |
| Europe |
46,747 |
41,634 |
46,251 |
43,432 |
44,276 |
43,542 |
45,047 |
37,054 |
| Unallocated
exchange differences and eliminations |
-20 |
-28 |
-6 |
-2 |
-19 |
-54 |
-38 |
-21 |
|
Total |
115,585 |
98,654 |
113,647 |
115,333 |
111,086 |
115,435 |
122,170 |
110,203 |
INFORMATION ON RELATED PARTIESSuominen Group's
related parties include the parent of the Group (Suominen
Corporation) and subsidiaries. In addition, 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.
Management remuneration
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. The annual and
meeting fees paid to the Board of Directors of Suominen Corporation
in 2021 were in total EUR 258 thousand, of which EUR 90 thousand
were paid in shares.
Other salaries paid to the related parties, including fringe
benefits during January-December 2021 amounted to EUR 2,442
thousand, of which EUR 371 thousand was the value of the vested
share-based payments. Obligatory pension payments were EUR 272
thousand and voluntary pension payments EUR 101 thousand. The
accrual, excluding social costs, based on the non-vested
share-based incentive plans in accordance with IFRS standards was
EUR 1,152 thousand for the related parties for the reporting
period.Management share ownershipNumber of
shares
| |
|
|
Board of Directors |
31.12.2021 |
| Jaakko Eskola,
Chair of the Board of Directors |
14,583 |
| Andreas
Ahlström, Deputy Chair of the Board |
21,333 |
| Björn
Borgman |
15,043 |
| Nina
Linander |
20,516 |
| Sari
Pajari-Sederholm |
10,554 |
| Laura
Raitio |
21,333 |
|
Total |
103,362 |
| Total % of
shares and votes |
0.18% |
|
|
|
|
Executive Team |
|
| Petri
Helsky |
39,354 |
| Lynda
Kelly |
24,295 |
| Markku
Koivisto |
18,641 |
| Klaus
Korhonen |
19,352 |
| Toni
Tamminen |
3,500 |
| Mimoun
Saïm |
34,447 |
|
Total |
139,589 |
| Total % of
shares and votes |
0.24% |
THE LARGEST SHAREHOLDERS ON DECEMBER
31, 2021
|
Shareholder |
Number of shares |
% of shares and votes |
| Ahlstrom Capital
B.V. |
13,953,357 |
24.0% |
| Oy Etra Invest
Ab |
8,700,000 |
14.9% |
| Nordea Nordic
Small Cap Fund |
3,435,147 |
5.9% |
| Ilmarinen Mutual
Pension Insurance Company |
3,046,892 |
5.2% |
| Etola Group
Oy |
2,900,000 |
5.0% |
| Nordea Life
Assurance Finland Ltd |
2,882,300 |
4.9% |
| Mandatum Life
Insurance Company |
2,881,547 |
4.9% |
| Pension Insurance
Company Elo |
1,944,651 |
3.3% |
| Varma Mutual
Pension Insurance Company |
1,689,751 |
2.9% |
| OP Life Assurance
Company Ltd |
1,688,830 |
2.9% |
| Oy H. Kuningas
& Co. AB |
1,567,416 |
2.7% |
| Skandinaviska
Enskilda Banken AB (publ.) |
1,089,738 |
1.9% |
| Mikko
Maijala |
855,147 |
1.5% |
| Juhani
Maijala |
794,026 |
1.4% |
|
Laakkosen Arvopaperi Oy |
750,000 |
1.3% |
| 15 largest
total |
48,178,802 |
82.70% |
| Other
shareholders |
7,781,721 |
13.36% |
| Nominee
registered |
1,337,962 |
2.30% |
| Treasury
shares(* |
960,734 |
1.65% |
|
Total |
58,259,219 |
100.00% |
|
|
|
|
(* The difference to the disclosed number of treasury shares is
due to the fact that Suominen applies trade day accounting to
acquisition of treasury shares.
CHANGES IN PROPERTY, PLANT AND
EQUIPMENT, INTANGIBLE
ASSETS AND RIGHT-OF-USE ASSETS
| |
31.12.2021 |
|
31.12.2020 |
|
EUR thousand |
Property, plant and equipment |
Intangible assets |
Right-of-use assets |
Property, plant and equipment |
Intangible assets |
Right-of-use assets |
| Carrying amount
at the beginning of the period |
104,666 |
16,748 |
17,784 |
121,584 |
20,020 |
14,319 |
| Capital
expenditure and increases |
17,609 |
162 |
719 |
10,100 |
306 |
7,410 |
| Disposals and
decreases |
− |
− |
-103 |
− |
− |
-80 |
| Depreciation,
amortization and impairment losses |
-13,061 |
-3,801 |
-3,230 |
-14,354 |
-3,549 |
-3,530 |
|
Exchange differences and other changes |
6,264 |
68 |
571 |
-12,664 |
-29 |
-335 |
|
Carrying amount at the end of the period |
115,478 |
13,176 |
15,741 |
104,666 |
16,748 |
17,784 |
Intangible assets excluding goodwill.
CONTINGENT LIABILITIES
|
Guarantees and other commitments |
2021 |
2020 |
| On own
commitments |
3,495 |
4,317 |
| Other own
commitments |
24,713 |
33,452 |
|
Total |
28,208 |
37,769 |
|
|
|
|
|
Other contingencies |
|
|
|
Contractual commitments to acquire property, plant and
equipment |
713 |
6,586 |
|
Commitments to leases not yet commenced |
458 |
31 |
|
Total |
1,171 |
6,620 |
|
Rental obligations |
|
|
|
| Within one
year |
42 |
38 |
|
| Between 1-5
years |
43 |
66 |
|
| After 5
years |
− |
− |
|
|
Total |
85 |
104 |
|
NOMINAL AND FAIR VALUES OF DERIVATIVE
INSTRUMENTS
| |
31.12.2021 |
31.12.2020 |
|
EUR thousand |
Nominal value |
Fair value |
Nominal value |
Fair value |
| Currency
forward contracts |
|
|
|
|
|
hedge accounting not applied |
1,960 |
-14 |
2,991 |
60 |
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 thousand |
a. |
b. |
c. |
d. |
e. |
| Equity
instruments |
− |
− |
421 |
421 |
421 |
| Trade
receivables |
− |
65,495 |
− |
65,495 |
65,495 |
| Derivative
receivables |
2 |
− |
− |
2 |
2 |
| Interest and
other financial receivables |
− |
259 |
− |
259 |
259 |
|
Cash and cash equivalents |
− |
101,357 |
− |
101,357 |
101,357 |
|
Total 31.12.2021 |
2 |
167,111 |
421 |
167,534 |
167,534 |
| |
|
|
EUR thousand |
a. |
b. |
c. |
d. |
e. |
| Equity
instruments |
347 |
− |
421 |
768 |
768 |
| Loan
receivables |
3,476 |
3,978 |
− |
7,454 |
7,454 |
| Trade
receivables |
− |
51,128 |
− |
51,128 |
51,128 |
| Derivative
receivables |
61 |
− |
− |
61 |
61 |
| Interest and
other financial receivables |
− |
378 |
− |
378 |
378 |
|
Cash and cash equivalents |
− |
57,877 |
− |
57,877 |
57,877 |
|
Total 31.12.2020 |
3,885 |
113,360 |
421 |
117,666 |
117,666 |
Principles in estimating fair value for financial assets for
2021 are the same as those used in consolidated financial
statements for 2020.
CHANGES IN INTEREST-BEARING LIABILITIES
|
|
2021 |
2020 |
|
Total interest-bearing liabilities at the beginning of the
period |
100,293 |
109,163 |
|
Current liabilities at the beginning of the period |
2,539 |
16,986 |
| Repayment of
current liabilities, cash flow items |
-2,757 |
-31,968 |
| Drawdown of
current liabilities, cash flow items |
− |
15,000 |
| Increases in
current liabilities, non-cash flow items |
309 |
276 |
| Decreases of
current liabilities, non-cash flow items |
-67 |
-625 |
| Reclassification
from non-current liabilities |
86,610 |
3,001 |
| Periodization of
debenture to amortized cost, non-cash flow items |
105 |
− |
|
Exchange rate difference, non-cash flow item |
84 |
-130 |
|
Current liabilities at the end of the period |
86,823 |
2,539 |
|
|
|
|
|
Non-current liabilities at the beginning of the period |
14,892 |
10,464 |
| Increases in
non-current liabilities, non-cash flow items |
418 |
7,744 |
| Decreases of
non-current liabilities, non-cash flow items |
-47 |
-3 |
| Reclassification
to current liabilities |
-2,653 |
-3,001 |
|
Exchange rate difference, non-cash flow item |
557 |
-312 |
|
Non-current liabilities at the end of the period |
13,167 |
14,892 |
|
|
|
|
|
Non-current debentures at the beginning of the period |
82,862 |
81,714 |
| Periodization of
debenture to amortized cost, non-cash flow items |
1,178 |
1,148 |
| Drawdown of
debentures |
50,000 |
− |
| Transaction costs
of debentures, cash flow item |
-939 |
− |
| Reclassification
to current liabilities |
-83,957 |
− |
|
Non-current debentures at the end of the period |
49,144 |
82,862 |
|
Total interest-bearing liabilities at the end of the
period |
149,134 |
100,293 |
FINANCIAL LIABILITIES
| |
31.12.2021 |
31.12.2020 |
|
EUR thousand |
Carrying amount |
Fair value |
Nominal value |
Carrying amount |
Fair value |
Nominal value |
|
Non-current financial liabilities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Debentures |
49,144 |
49,125 |
50,000 |
82,862 |
87,661 |
85,000 |
|
Lease liabilities |
13,167 |
13,167 |
13,167 |
14,892 |
14,892 |
14,892 |
| Total non-current
financial liabilities |
62,311 |
62,292 |
63,167 |
97,754 |
102,553 |
99,892 |
|
|
|
|
|
|
|
|
| Current
financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debentures |
84,062 |
86,496 |
85,000 |
− |
− |
− |
| Lease
liabilities |
2,761 |
2,761 |
2,761 |
2,539 |
2,539 |
2,539 |
| Interest
accruals |
936 |
936 |
936 |
522 |
522 |
522 |
| Derivative
liabilities |
15 |
15 |
15 |
1 |
1 |
1 |
| Other current
liabilities |
379 |
379 |
379 |
552 |
552 |
552 |
|
Trade payables |
45,661 |
45,661 |
45,661 |
42,024 |
42,024 |
42,024 |
| Total current
financial liabilities |
133,814 |
136,248 |
134,752 |
45,639 |
45,639 |
45,639 |
|
|
|
|
|
|
|
|
|
Total |
196,125 |
198,540 |
197,919 |
143,393 |
148,191 |
145,531 |
The financial liabilities in the table above, with the exception
for derivative liabilities, are measured at amortized cost.
Principles in estimating fair value for financial liabilities
for 2021 are the same as those used in consolidated financial
statements for 2020.
FAIR VALUE MEASUREMENT HIERARCHY
EUR thousand
| Fair
value hierarchy in 2021 |
|
|
|
|
Financial assets at fair value |
Level 1 |
Level 2 |
Level 3 |
| Equity
instruments |
− |
− |
421 |
| Currency
derivatives |
− |
2 |
− |
|
Total in 2021 |
− |
2 |
421 |
|
|
|
|
|
|
Financial liabilities at fair value |
Level 1 |
Level 2 |
Level 3 |
| Currency
derivatives |
− |
15 |
− |
|
Total in 2021 |
− |
15 |
− |
| Fair
value hierarchy in 2020 |
|
|
|
| |
|
|
|
|
Financial assets at fair value |
Level 1 |
Level 2 |
Level 3 |
| Equity
instruments |
− |
− |
768 |
| Loan
receivables |
− |
− |
3,476 |
| Currency
derivatives |
− |
61 |
− |
|
Total in 2020 |
− |
61 |
4,244 |
|
|
|
|
|
|
|
|
|
|
|
Financial
liabilities at
fair value |
Level 1 |
Level 2 |
Level 3 |
| Currency
derivatives |
− |
1 |
− |
|
Total in 2020 |
− |
1 |
− |
Principles in estimating fair value for financial assets for
2021 are the same as those used in consolidated financial
statements for 2020.
SUOMINEN CORPORATIONBoard of DirectorsFor further information,
please contact: Petri Helsky, President & CEO, tel. +358
10 214 3080Toni Tamminen, CFO, tel. +358 10
214 3051Suominen 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 2021 were EUR 443.2
million and we have over 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 HelsinkiMain mediawww.suominen.fi
- Suominen Financial Statement Release 2021
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