Annual Report
2021
This is Suominen
Suominen manufactures nonwovens as roll goods for wipes and other
applications. Our vision is to be the frontrunner for nonwovens innovation
and sustainability. The end products made of Suominen’s nonwovens are
present in people’s daily life worldwide. Suominen’s net sales in 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.
Net sales, EUR million
443.2
Employees
710
EBITDA, EUR million
47.0
Share of new products
from net sales over
25%
Contents
This is Suominen…2
Suominen today… 3
President & CEO’s review…4
Financial targets…7
Key figures…8
How Suominen creates value…9
Operating environment…12
Strategy… 14
Sustainability…17
Sustainability at Suominen…18
People and safety…21
Low impact manufacturing…27
Sustainable nonwovens…31
Corporate citizenship… 34
Stakeholder dialogue…36
Tax footprint…38
Reporting principles…41
GRI index…42
GRI appendix…47
Our management approach…51
Independent assurance statement…52
Corporate Governance… 55
Corporate Governance Statement… 56
Remuneration Report…66
Board of Directors…75
Executive Team…76
Financial information…77
Report by the Board of Directors…79
Consolidated financial statements (IFRS)…98
Key ratios per share…163
Parent company financial statement (FAS)…167
Proposal by the Board of Directors for distribution of funds… 180
Auditor’s report…181
Independent Auditor’s Report on Suominen Corporation’s
ESEF Consolidated Financial Statements…185
Key ratios…187
Information for shareholders…193
This is
Suominen
Suominen manufactures nonwovens as roll goods for wipes and other
applications. 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.
Suominen today
Over 700
professionals
working in
Europe and in
the Americas
Europe 40%
40.18
Americas 60%
59.82
Net sales by business area
Europe 40%
Americas 60%
443.2
EUR million
1
Suominen has two business areas, the Americas and
Europe. In 2021, net sales of the Americas business
area amounted to EUR 265.2 million and net sales of
theEurope business area to EUR 178.1 million.
FINLAND 137
Nakkila
Helsinki, Head oce
ITALY 164
Cressa
Mozzate
SPAIN 66
Alicante
BRAZIL 58
Paulínia
USA 285
Windsor Locks
Green Bay
Bethune
3Suominen Annual Report 2021
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President &
CEO’s review
4 Suominen Annual Report 2021
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We continued executing our strategy
published in 2020. The main objectives
of our strategy are growth and improved
profitability by focusing on sustainability,
customer focus and eciency. During
2021, we completed three investment
projects. Two of them were in Italy, one to
increase the capacity by re-starting a line,
and another to increase our capabilities in
sustainable nonwovens. The third project
was in the USA to increase our capabilities
to oer new innovative products.
Our EBITDA was EUR 47.0 million, the
third-best annual result in the history
of Suominen. 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.
Our strong ability to innovate and to meet
market needs is reflected in the share of
new products of our net sales which was
above 25% in 2021. By new products, we
mean products launched less than three
years ago.
Sustainability at the core of our
strategy
Sustainability is the cornerstone of our
strategy, and we develop our product
oering and operations accordingly.
Our target is to increase the sales of
sustainable products by 50% compared
to a base year of 2019, and to launch 10
sustainable products each year. In 2021,
the sales of sustainable products were
47% higher than in the base year 2019,
and during the year we launched 16
sustainable products. We are also actively
researching new sustainable fibers to be
able to serve the needs of our customers
even better. We have conducted test runs
for example with hemp and have received
excellent feedback from our customers on
the products.
In our operations we want to use
resources eciently and to operate
with the smallest possible impact on
the environment. We have concrete
reduction targets for our greenhouse gas
emissions, energy and water consumption,
and landfill waste, and we made steady
progress towards these targets in 2021.
One example of our work to reduce
greenhouse gas emissions is our decision
to shift entirely to fossil-free electricity in
all our European sites.
Occupational safety is a key priority
at Suominen, and our target is zero lost
time accidents. We work continuously
to further improve our safety culture and
share best practices. Another people
related target is to strengthen employee
engagement. We conducted a second
consecutive employee engagement
survey in 2021. The results will be used
as a basis for concrete, goal-oriented
development actions as part of our
systematic work to improve employee
The second year of the COVID-19 pandemic
was twofold for Suominen. During the first
half, Suominen’s sales volumes and result
continued at the record levels of 2020. In the
third quarter, we suf-fered sudden, temporary
drop in volumes due to overstocking
in the supply chain followed by partial
recovery in the fourth quarter. Our strategy
implementation proceeded steadily.
5Suominen Annual Report 2021
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engagements and the development of
ahigh-performanceculture.
For us sustainability is not only about
environmentally friendly products and
minimizing the environmental impact
of our operations: we highlight the
importance of sustainable business
practices throughout our value chain.
Accordingly, our all employees received
training on our new Code of Conduct.
Strategy implementation
continues
We implement our strategy through five
focus areas: Operational excellence,
Sustainability leadership, Dierentiate
with innovation and commercial
excellence, Great place to work, and Dual
operatingmodel.
We are continuously improving the
eciency and quality of our operations
and promoting the health and safety of
our employees. We leverage our unique
asset base and our pioneering know-how
in nonwovens to strengthen our leadership
position in sustainable nonwovens.
We serve our customers with the best
products and services, we get results by
harnessing our organization’s positive
energy and commitment.
EBITDA, EUR million
47.0
Net sales, EUR million
443.2
Sales of sustainable
products increased*
47%
Share of new products
of net sales over
25%
Toward the future
Looking at the year 2022 we see
challenges especially in the first months
of the year. Certain important customers
are still struggling with their inventory
levels, and the recent surge of COVID
cases will impact not only our but also
our customers’ operations. Combined,
these challenges will make the near-term
demand picture very volatile. We also
continue to have a lag between the rising
raw material, energy and logistics costs
and our sales prices. We expect demand
for our products to stabilize starting from
the second quarter of the year. The long-
term consumer demand is expected to
remain above the pre-pandemic levels.
Our performance was good despite
all the challenges. I want to thank our
shareholders, customers, and business
partners for their excellent cooperation.
Iparticularly want to thank our employees
for their solid commitment and excellent
work. As we continue with the same
determination, we can be sure that our
vision will be realized, and we will continue
to be the forerunner in innovative and
sustainable nonwovens.
Petri Helsky
President & CEO
* Compared to base year 2019
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Palkit ja käppyrä
Net sales
2019
411.4
2020
458.9
2021
443.2
Net sales, EUR million
0
100
200
300
400
500
443.2
458.9
411.4
EUR
million
2021
2020
2019
1
47.0
5
10
15
20
0
20
40
60
80
2019
2021
60.9
33.7
Palkit ja käppyrä
2019
33.7 8.2
2020
60.9
13.3
2021
10.6
EUR
million %
*Including the eect of IFRS 16 Leases
Earnings before interest, taxes, depreciation
and amortization (EBITDA) and EBITDA margin
2021 pylväs
47.0
3
Palkit ja käppyrä
Gearing, %
2019
50.7
2020
25.4
2021
30.4
Gearing, %
0
15
30
45
60
30.4
25.4
50.7
2021
2020
2019
5
EBITDA margin
by 2025:
above
12%
Net sales growth
during the period:
above relevant
market growth
Gearing
during
the period:
40–80%
including the eect of
IFRS 16 Leases
Financial targets
Targets 2020–2025
How to get there?
GROWTH PROFITABILITY GEARING
Focus on fast-growing sustainable products
Innovation and launching new products to
capture market share
Targeted investments to improve capabilities
and increase capacity
Eective utilization of production lines
Margin improvement through new
products as well as production and
rawmaterialeciency
Continued fixed cost control
Balanced investment plan
Healthy cash flow from operations
7Suominen Annual Report 2021
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Key figures
FINANCIAL 2021 2020
Net sales, EUR million . .
EBITDA, EUR million . .
Comparable operating profit, EUR million . .
Profit for the period, EUR million . .
Earnings per share, EUR . .
Dividend, EUR .** .*
Cash flow from operations, EUR million . .
Cash flow from operations per share, EUR . .
Capital expenditure, EUR million . .
Equity ratio, % . .
Equity per share, EUR . .
Gearing, % . .
Return on invested capital (ROI), % . .
EMPLOYEES 2021 2020
Number of employees  
Number of lost time accidents
ENVIRONMENT 2021 2020
Energy consumption, GJ ,, ,,
Greenhouse gas emissions, tons of CO₂ eq. , ,
Water consumption, ML , ,
Process waste to landfill, tons , ,
* Dividend and return of capital
** Proposal by the Board of Directors to the Annual General Meeting
Palkit ja käppyrä
Net sales
2019
411.4
2020
458.9
2021
443.2
Net sales, EUR million
0
100
200
300
400
500
443.2
458.9
411.4
EUR
million
2021
2020
2019
1
Palkit ja käppyrä
Gearing, %
2019
50.7
2020
25.4
2021
30.4
Gearing, %
0
15
30
45
60
30.4
25.4
50.7
2021
2020
2019
4
Palkit ja käppyrä
Comparable
operating profit
2019
8.1
2020
39.5
2021
26.9
Comparable operating profit,
EUR million
0
10
20
30
40
50
26.9
39.5
8.1
2021
2020
2019
6
20.7
0.00
0.25
0.50
0.75
0
10
20
30
40
2019
2020
2021
30.1
0.2
Palkit ja käppyrä
Profit for the
period
Earnings per
share, EUR
2019
0.2
0
2020
30.1
0.52
2021 0.36
Profit for the period, EUR million and
earnings per share, EUR
EUR
Earnings per share, EUR
EUR
million
2021 pylväs
Profit for the
period
20.7
8
11.1
0.00
0.50
1.00
1.50
0
15
30
45
60
2019
2020
2021
57.0
29.9
Palkit ja käppyrä
Cash flow
from
operations
Cash flow
from
opera@ons
per share,
EUR
2019
29.9
0.52
2020 57.0
0.99
2021
0.19
Cash flow from operations, EUR million and
cash flow from operations per share, EUR
EUR
Cash flow from operations per share, EUR
EUR
million
2021 pylväs
Cash flow
from
operations
11.1
9
Palkit ja käppyrä
Dividend per share,
EUR
2019
0.05
2020
0.20
2021
0.20
Dividend per share, EUR
0.00
0.05
0.10
0.15
0.20
0.20
0.20
0.05
2021
2020
2019
**Proposal by the Board of Directors to
the Annual General Meeting
*
*Dividend and return of capital
**
7
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This is Suominen | Sustainability | Corporate Governance | Financial Information
Converter,
e.g., wet wipe
manufacturer
Fiber producer
Nonwovens
manufacturer,
Suominen
Brand owner
Consumer
Primary
production
Retailer
How Suominen creates value
Suominen is a nonwovens manufacturer operating in global
markets. Suominen creates value by taking fiber raw materials
and turning them into nonwovens that our customers convert
into both consumer and professional end products.
9Suominen Annual Report 2021
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Value creation model
FINANCIAL RESOURCES
- Total equity: EUR 163.2 million
- Total liabilities: EUR 223.5 million
NATURAL RESOURCES
- Water 5,926,776 m
3
- Raw materials
- Wood-based 59%
- Oil-based 41%
- Other 1%
- Energy 1,852,993 GJ
- Natural gas 43%
- Grid electricity 37%
- Steam 20%
INTELLECTUAL CAPABILITIES
- Suominen brand and our way of operating
- R&D expenses EUR 2.7 million
- 15 R&D professionals
- 50 granted and 18 pending patents
- 54 trademarks and design patents
- Piloting facility
- Technical know-how
- IT systems
SOCIAL RELATIONSHIPS
- Customer and supplier relations
- R&D cooperation with stakeholders
- Consumer dialogue
- Manufacturing partners
- Professional networks
- Memberships in associations
- Local communities
MANUFACTURING RESOURCES
- Geographically and technically broad
manufacturing base
710 employees
Eight production
plants on three
continents
Net sales
EUR 443.2 million
SUOMINEN’S STRATEGY:
Growth and profitability
through sustainability,
customer focus and eciency
We will grow by creating innovative and more
sustainable nonwovens for our customers and
improve our profitability through more ecient
operations and a high performance culture.
Our main focus is on wipes. We will strengthen
our capabilities in Europe and Americas, and
evaluate opportunities in Asia.
INPUTS SUOMINEN
10 Suominen Annual Report 2021
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CUSTOMERS
- Improved product performance
- Suominen brand value
- Customer satisfaction
EMPLOYEES
- Wages and salaries EUR 36.4 million
- Professional development
- Fair employment practices and equal opportunities
- Safe workplace: 4 lost time accident
PARTNERS
- Spend on materials and services EUR 318.0 million
- Business growth
- Ethical business
- Interest to creditors
SHAREHOLDERS
- Dividend (Board’s proposal) EUR 11.4 million
ENVIRONMENT
- Waste and emission load from operations
and end products
- Sustainable product portfolio includes
compostable and dispersible end products
- No untreated water discharge
SOCIETY
- Corporate income tax EUR 5.8 million
- Employment
PRODUCTS AND SOLUTIONS
- Nonwovens for wipes and other applications
WASTE
- Waste to landfill 3,209.4 tons
EMISSIONS
- Direct greenhouse gas emissions
43,299 tons of CO₂ eq.
- Indirect greenhouse gas emissions
71,499 tons of CO₂ eq.
WATER
- Treated water from operations
How does the model work?
The value creation model describes Suominen’s value
creation process: the resources we utilize in executing our
strategy, the outputs and, ultimately, the impacts of our
business activities.
The model describes Suominen’s business on a high
level, meaning that only the most essential matters are
presented. Still, not all matters bear equal importance, nor
is their respective relevance presented in the model.
In the value creation model, inputs are what we utilize
in our business activities. The Suominen section describes
Suominen’s business operations and strategy. Outputs
are the outcomes of our business activities and impacts
describe how our business activities aect the world
around us.
OUTPUTS
IMPACTS
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The global demand for nonwovens is growing
continuously. The growth depends mainly on consumer
demand, which is a combination of the general economic
situation and consumers’ confidence in the development
of their personal finances. However, the demand for
fast-moving consumer goods – that is, end products for
which most of Suominen’s products are used – is not very
cyclical in nature.
COVID-19 pandemic continues to cause
uncertainty
The operating environment continued to be highly
marked by the COVID-19 pandemic in 2021. The key
uncertainties related to the pandemic concern the health
and safety of Suominen personnel and customers,
possible shortages of raw materials and issues linked to
logistics as well as potential closures of customers’ or
our own plants due to virus infections or decisions by
theauthorities.
Throughout the pandemic, our primary focus has been
in safeguarding the health and safety of our employees
and to maintain business continuity. Nonwovens
production has been classified as essential in fighting
the pandemic in our operating areas where other
business activities have been limited or shut down by the
authorities. In 2021, we were able to run our operations
with limited impact due to the strict safety procedures
that were implemented in the beginning of the pandemic
to minimize the risk of workplace infections.
In the first half of 2021 sales volumes 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. The demand picture in the beginning of 2022
continues to be volatile. The market expectation is that, in
the long run, the end user demand for wipes will remain
above pre-COVID-19 levels.
Demographic megatrends support our growth
Global megatrends shape our operating environment
and aect our business. Megatrends such as population
growth, growing global middle class, aging population,
increasing consciousness of health and well-being
and rising healthcare expenditure support our growth
forecasts due to their impact on consumer behavior.
There is a direct correlation between the rise in the
standard of living and, for example, demand for hygiene
products. The rise in the standard of living combined with
evolving lifestyles is reflected in the consumer behavior
of the prospering middle class. In addition to essential
commodities, the consumption of this demographic will
center around solutions that make daily routines easier
and less time-consuming. The use of household wipes
and beauty care wipes are examples of this phenomenon.
With aging populations and changing healthcare
models, new needs are emerging and the demand for
nonwovens used in, for example, medical applications
and incontinence products is increasing. On the other
hand, the need to find cost-eective solutions to combat
bacteria and viruses is also contributing to the increase in
demand for nonwovens.
Operating environment
Suominen is the global market leader in nonwovens for wipes,
and among thelargest spunlace nonwovens producers in the world.
Our main market areas are Europe and North America. We also hold
a strong position in theSouthAmerican markets.
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COVID19 IMPACTS
The pandemic has increased
the demand for our products
in all our markets. In the long
run, the market and Suominen’s
expectation is that demand will
remain above pre-COVID-19
levels. The key risks caused
by COVID-19 are related
to the health and safety of
Suominen’s personnel and
customers, possible shortages
of raw materials, issues linked
to logistics as well as potential
closures of customers’ or our
own sites due to virus infections
or authority decisions.
Europe
In Europe, all consumer wipe categories
are highly fragmented and competitive.
The Single-Use Plastic Directive is an
important driver towards sustainability
for the nonwovens industry.
Leading trends in Europe are
sustainability (e.g. carbon reduction
targets, circular economy, plastic-free
materials) and ethical living (e.g. cruelty-
free, vegan).
North America
North America is the largest consumer
market for wipes. All wipe categories
are growing with particularly strong
growth in private labels, winning shares
from brands. Household products have
a fairly big share in the North American
wipes market.
The leading trends are transparency
in the value chain and fewer and more
natural ingredients.
South America
The South American market is
dominated by the baby category and
branded players, but other segments are
growing.
Rising consumer awareness, high focus
on sustainability and reducing single-
use plastic products are the leading
trends.
Net sales of the Europe business area
were EUR 178.1 million, corresponding
to 40% of Suominen’s net sales in 2021.
Suominen had 367 employees in Europe
in 2021. Suominen has two sites in
Italy, one in Spain and one in Finland.
Suominen’s headquarters is in Helsinki,
Finland.
Net sales of the Americas business area
were EUR 265.2 million, corresponding
to 60% of Suominen’s net sales in 2021.
Suominen had 343 employees in the
Americas in 2021. Suominen has three
sites in USA and one in Brazil.
MARKET CHARACTERISTICS
Sustainability is a key trend
Megatrends such as climate change and environmental
degradation drive us to reduce the environmental impacts
of our operations, innovate even sustainable products and
improve our raw material eciency.
The market for sustainable nonwovens is growing
globally and especially in Europe and North America.
Consumer behavior as well as legislation and regulations
are driving the market towards more sustainable
products.
In Europe, one of the most significant changes in the
operating environment is the European Plastic Strategy
and European Commission’s Single-Use Plastics Directive
(SUPD). The directive aims to protect the environment
and to reduce marine pollution. SUPD impacts end
products made of nonwovens since many wet wipes
are traditionally made, at least partially, of raw materials
containing plastics. Labeling requirements under the
Directive for products containing plastic entered into
force in July 2021.
Initiatives similar to SUPD have emerged also in
other regions as concerns over sewer blockages and
marine pollution caused by, among other reasons, the
inappropriate disposal of nonwoven products have
beenraised.
The need to develop more ecological and sustainable
products is clear, and Suominen is well placed to respond
to this demand.
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Our vision is to be the frontrunner for nonwovens
innovation and sustainability. Our focus is on wipes. We
strengthen our capabilities in Europe and the Americas
and evaluate opportunities in Asia. We execute our
strategy through our five strategic focus areas.
Operational excellence
We continuously improve the eciency and quality of our
operations, promote the occupational health and safety of
our employees, and increase cost awareness throughout
the organization.
Safety is a top priority for us, and we are committed
to protecting the health and safety of our employees.
The COVID-19 pandemic has required special attention
to health and safety issues. When the pandemic started,
we implemented several safety and other precautionary
measures which remained active in 2021. We believe
a strong safety culture is created through an open and
continuous dialogue and we want to make Suominen
even safer by strengthening our employees’ safety
awareness.
We continue to work on our eciency and performance
by systematically developing our processes and
operations. We have launched several eciency initiatives
and actively share best practices between our sites to
drive improvement in this area.
Sustainability leadership
We leverage our pioneering fiber-based nonwovens
know-how and our unique asset base to achieve a leading
position in the sustainable nonwovens market.
The requirements for more sustainable products have
increased rapidly, with customers’ growing interest
towards more sustainable choices and legislation as
the main drivers. We are leading the market change by
actively developing new products to meet the growing
demand. During 2021, we launched 16 sustainable
products. These nonwovens are made of biodegradable,
recycled, compostable and/or renewable plantbased
fibers. We are also constantly researching new potential
fibers such as nettle, hemp, and regenerated cellulose in
our NewFiberCenter.
Our target is to use resources eciently and to
operate with the smallest possible impacts on the
environment. We have set concrete reduction targets
for four environmental impact KPIs in own operations:
greenhouse gas emissions, energy consumption, water
consumption and waste to landfill.
In 2021, we progressed well in all these areas. For
example, as part of our work to reduce our greenhouse
gas emissions, we made the decision to shift entirely to
fossilfree electricity in all our European sites. We monitor
our progress regularly and are always seeking new ways to
further improve our operations.
We launched our renewed Code of Conduct in the
beginning of 2021, and a mandatory training about the
Code was arranged to all employees.
Dierentiate with innovation and commercial
excellence
We oer best-in-class products and build close
relationships with our customers.
Our versatile and experienced R&D team together
with our pilot line capabilities enable our industry
leading product development. A close collaboration with
customers plays an important role in our R&D strategy.
Strategy
Our mission is to enable our customers to win by creating quality nonwovens.
The objectives of our strategy are growth and improved profitability through
sustainability, customer focus and eciency.
Strategic
focus areas
Operational
excellence
Sustainability
leadership
Dierentiate
with innovation
and commercial
excellence
Great place
to work
Dual operating
model
Values
Ownership Teamwork Performance Integrity
Mission
Enabling our customers to win
by creating quality nonwovens
Strategy: Growth and profitability through sustainability, customer focus and efficiency
We will grow by creating innovative and more sustainable nonwovens for our customers and improve our
profitability through more ecient operations and a high performance culture. Our main focus is on wipes.
We will strengthen our capabilities in Europe and Americas, and evaluate opportunities in Asia.
Vision
Frontrunner for nonwovens
innovation and sustainability
14 Suominen Annual Report 2021
This is Suominen | Sustainability | Corporate Governance | Financial Information
Strategic
focus areas
Operational
excellence
Sustainability
leadership
Dierentiate
with innovation
and commercial
excellence
Great place
to work
Dual operating
model
Values
Ownership Teamwork Performance Integrity
Mission
Enabling our customers to win
by creating quality nonwovens
Strategy: Growth and profitability through sustainability, customer focus and efficiency
We will grow by creating innovative and more sustainable nonwovens for our customers and improve our
profitability through more ecient operations and a high performance culture. Our main focus is on wipes.
We will strengthen our capabilities in Europe and Americas, and evaluate opportunities in Asia.
Vision
Frontrunner for nonwovens
innovation and sustainability
During the year, we held innovation and sustainability
workshops with many of our customers to understand
their needs even better. The share of new products of our
net sales reflects our strong ability to innovate and meet
the market needs – in 2021, the share of new products
was over 25% of our net sales.
We continued our sales training program in 2021 aiming
to further strengthen our commercial excellence in order
to reach the full potential of our competitive advantages.
Great place to work
We harness the organization’s positive energy and
commitment to deliver results.
We are systematically developing employee
engagement and implementing targeted actions based
on our Vibe employee engagement survey. In 2021, we
conducted the survey for the second consecutive year.
The results identified good progress in topics that were
chosen as areas of development based on the previous
15Suominen Annual Report 2021
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survey. We will continue to build on our strengths and
focus on improvement possibilities.
We are further developing our processes and practices
to drive excellent performance and to reward for it
through a pay-for-performance compensation model.
In 2021, we implemented renewed performance
development process and launched a competency
framework to systematically support our employees in
their professional development.
Dual operating model
We optimize our operations through separate operating
models for our standard and specialty products. We
allocate standard products into the production lines that
are best suited for them, while making specialty products
on smaller and more flexible production lines.
In 2021, we defined target portfolios for each
production line to optimize the way we drive the lines and
developed metrics to follow the asset optimization eorts.
We will continue to implement operating models that will
enable us to deliver higher volume standard products with
improved cost eciency and at the same time address
the more diverse customer needs concerning specialty
products often produced in lower volumes.
Three investment projects completed,
two in Italy and one in the USA
Sales of sustainable products increased
47% compared to the base year 2019
16 sustainable product launches
Strategic highlights of the year
20.3% reduction in water consumption, 16.4%
reduction on waste to landfill and 8.8% reduction
in greenhouse gas emissions per ton of product
compared to base year 2019
Moving to fossil-free electricity
in all European sites
Share of new products above 25% of net sales
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Sustainability
products, health and safety, energy
eciency, waste prevention, financial
stability and employee engagement.
The results of the assessment served as
the basis for our sustainability agenda
2020–2025.
In 2021, Suominen conducted the
stakeholder survey again to ensure
validity of the most important material
sustainability topics defined in 2019.
Thestakeholder survey was conducted in
aweb-based platform, and it was open to
all our stakeholders in the second part of
2021. The results of the survey confirmed
that the key objectives and focus areas
on our Sustainability Agenda 2020–2025
remain valid and correspond with our
stakeholders’ expectations.
Sustainability agenda
Suominen’s sustainability agenda
crystallizes the sustainability themes and
targets for the strategy period 2020–2025.
The agenda was approved by the Board of
Directors, and progress in dierent areas is
regularly monitored. The agenda focuses
on four themes, People and safety,
Sustainable nonwovens, Low impact
manufacturing and Corporate citizenship.
Sustainability at Suominen
Sustainability is at the core of our strategy and business. Our vision
is to be the frontrunner in nonwovens innovation and sustainability.
Sustainability is an integral part of all our operations.
Materiality
Identification of the most material aspects
of sustainability helps us to prioritize
our work and eorts in this area. At
Suominen, material sustainability topics
are defined according to their significance
to Suominen’s business and stakeholders’
expectations. A materiality assessment was
conducted in 2019. The process included
a stakeholder survey sent to stakeholders
– such as customers, employees,
institutional investors, suppliers, industry
associations and owners – and interviews
with key stakeholders. The current
business environment and key market
drivers aecting the industries in which
Suominen and its customers operate were
also reviewed as part of the process. The
topics were then assessed on the basis
of their importance to Suominen and
its stakeholders at an internal workshop
involving key experts and management.
As a result of our analysis in 2019, the
six most material sustainability topics for
Suominen were chosen: eco-friendly
Suominen’s sustainability agenda
crystallizes the sustainability themes and
targets for the strategy period 2020–2025
18 Suominen Annual Report 2021
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We invest
in increasing
employee engagement.
We continue to build a high
performance culture.
We continue to strengthen
our safety culture.
People and safety
Sustainable nonwovens
Low impact manufacturing
Corporate citizenship
We are
the frontrunner
in sustainable
nonwovens.
We promote responsible
business practices in our
operations and supply chain.
We communicate openly
and transparently about
our operations.
We continuously strive to
decrease environmental
impacts of our
operations.
Sustainability agenda 2020–2025
Most relevant UN Sustainable Development Goals for Suominen
SDG 8: Decent work
and economic growth
Suominen promotes
responsible business
practices throughout the
value chain and does not
tolerate slavery, forced or child labor, or
human tracking in any form in its own or
its suppliers’ operations. Suominen promotes
equal opportunities for all. Our principle is
“equal pay for an equal contribution”. A safe
workplace is one of our top priorities, and
we are continuously striving to improve our
safety culture in order to achieve an accident-
free workplace.
SDG 12: Responsible
consumption and
production
Our goal is to use natural
resources as eciently
as possible and strive for
minimization of waste in production, by
recycling and finding alternative outlets for
non-recyclable waste. With our product
oering, we contribute to this goal by taking
account of the entire value chain in our
product design, in order to decrease any
negative impacts on the environment. We
publicly report our activities and progress
towards our sustainability goals.
SDG 13: Climate action
Suominen is committed to
reducing the greenhouse
gases emitted due to its
operations, by improving
its energy eciency
and finding alternative low-carbon energy
sources. With our product oering, we
are contributing to this goal by calculating
the carbon footprint of our products
and developing solutions with a smaller
climateimpact.
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Our sustainability targets and key performance indicators (KPIs)
INDICATOR TARGET FOR 2025 RESULT
People
and safety
Lost time accident 0 4 in 2021
Employee engagement index 73% 66% in 2021
Sustainable
nonwovens
Number of sustainable
product launches
¹
Over 10 per year 16 in 2021
Sales of sustainable products 50% increase in sales compared
to the base year 2019
47% increase compared
to the base year 2019
Corporate
citizenship
Coverage of renewed
Codeof Conduct
100% of existing employees
and new hires
82% of employees trained
by the end of 2021
Supplier audits Raw material suppliers audited
against supplier code
(based on risk assessment)
Establishing auditing process
proceeded as planned
Low impact
manufacturing
Energy consumption
(GJ/t of product)
20% reduction
compared
to the base year 2019
7.1% reduction compared
to the base year 2019
Process waste to landfill
(kg/t of product)
20% reduction
compared
to the base year 2019
16.4% reduction compared
to the base year 2019
Water consumption
(m
3
/t of product)
20% reduction
compared
to the base year 2019
20.3% reduction compared
to the base year 2019
Greenhouse gas emissions
(t/t of product)
20% reduction compared
to the base year 2019
2
8.8% reduction compared
to the base year 2019
2
¹ Sustainable products launches include new sustainable product launches, re-launches and concepts related to sustainable products
² Target is set for Scope 1 and 2 emissions(emissions from our own operations and purchased energy generation). Due to the greenhouse gas calculation method revision, the
greenhouse gas figures for 2019 and 2020 were restated.
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Occupational safety and the overall well-being of employees is a priority for
Suominen. We invest in increasing employee engagement and continue to build
a high performance culture. We continue to strengthen our safety culture.
People and safety
21Suominen Annual Report 2021
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Safeguarding our employees
For Suominen, securing the health and
safety of its employees is, in all situations,
of the utmost importance. Various safety
and other precautionary measures were
implemented at the beginning of the
COVID-19 pandemic and remained active
in 2021.
We continued to monitor the
development of the pandemic and
adjusted our safety measures accordingly.
Increasing
employee
engagement is
one of our key
people-related
targets
A COVID-19 task force with participants
from all our locations continued in 2021.
Thanks to our dedicated people and
our proactive approach and actions, the
pandemic has had only a limited impact
on our ability to serve our customers and
to run our operations. We were also able
to continue working towards achieving our
sustainability targets according to plan,
regardless of the pandemic.
Our people
Our operating environment continued to be impacted by the COVID-19
pandemic, and securing the health and safety of our over 700 employees was
our top priority. We continued to develop our people-related processes. In 2021,
we had a special focus on three topics: career and performance development,
feedback and recognition, and management skills and communication.
22 Suominen Annual Report 2021
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pride, and commitment. The result
means that 66% of the survey participants
responded favorably to those questions.
Further developing our recruitment
and onboarding processes and the
related experiences is an important
long-term target for us. We will also
strengthen and promote our employer
brand more actively to increase employee
commitment, retention, satisfaction,
andattraction.
In pursuit of high performance
Building a high performance culture is
an important element in Suominen’s
strategy and Sustainability Agenda. We
strive to build a culture in which people
are encouraged to exceed expectations –
to go the extra mile – and are enabled to
perform to their full potential. To support
the successful implementation of our
strategy and the high performance culture,
we ensure that our employees’ targets and
actions are aligned with the company’s
strategy and objectives.
We continuously develop our processes
and practices to identify, foster and reward
excellent performance and to drive a pay-
for-performance compensation model.
Feedback and recognition was identified
as an area for development in our
previous global employee engagement
survey, and in 2021, we implemented
an entirely re-designed performance
development process. The process
covers all our white collar employees and
consists of four structured employee–
manager discussions per year. In 2021,
we also reviewed and created a plan to
harmonize local blue collar performance
management processes and short-term
incentive plans. The employee–manager
discussions covered 77% of our employees
globally in 2021.
Palkit ja käppyrä
Number of
employees, average
2019
685
2020
689
2021
710
Number of employees
0
200
400
600
800
710
689
685
2021
2020
2019
10
Advancing employee engagement
Increasing employee engagement is one
of our key people-related targets in our
Sustainability Agenda. We conducted a
global employee engagement survey for
asecond consecutive year in 2021.
The response rate for the survey was
73%. The survey results identified both
positive areas and opportunities for
improvement. The results improved in
all areas that were chosen as focus areas
based on the results of the previous
survey, confirming to us that the actions
that we took were on point and eective.
Confidence in the company’s future
success, on the other hand, decreased
from 2020, which was financially a record
year for Suominen.
The global results are used as a basis for
our people-related development work.
Team-specific results are shared with the
team leaders, and they will be reviewed
and discussed within the teams. Based
on the results, each site and function
leader will create a targeted, actionable
development plan, including follow-ups.
Based on the global results, our
employee engagement index is 66%,
which is three percentage points lower
than in the previous survey. The index is
acombination of questions concerning
our people’s likelihood of recommending
and staying in the company, organizational
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Promoting equal opportunities
and supporting professional
development
Suominen has over 700 employees,
representing more than a dozen
nationalities working in eight locations
on three continents. We recognize the
business benefits of having a diverse
workforce and want to oer a fair
workplace with equal opportunities for
everyone. We do not tolerate any kind of
discrimination, including discrimination
based on age, gender, religion, or ethnic
origin. When making employee-related
decisions, for example when recruiting,
promoting, rewarding, or developing
our personnel, we pay special attention
toequality.
Career development and identifying
and developing the competencies that
are essential in reaching our strategic
objectives were also identified as areas
710
employees
for improvement in our previous global
employee engagement survey. In 2021,
we created and launched a competency
framework to systematically support
our employees in their professional
development. The framework also
strengthens our processes for recruitment
and succession planning and enables
mapping of competencies.
In 2021, a mandatory training program
regarding Suominen’s renewed Code of
Conduct was rolled out to all employees.
We also arranged trainings and other
activities for supervisors, to support
them in their work and improve their
manager skills. In addition, various quality
and process trainings and a series of
agreement trainings were arranged during
the year for targeted roles.
CASE | Employee well-being
We support
our employees
in their
professional
development
Occupational wellbeing
inexceptional times
Due to the COVID-19 pandemic, travel, interacting
in person, and recreational events have long
been restricted. Therefore, we have tried some
new ways to promote wellbeing this year. We
organized virtual coee breaks in which sta from
dierent functions “met” in pairs online for an
informal coee break. The idea was to help sta
to network and get to know each other, and to
add a bit of variety to their working day. The virtual
coee breaks were very well received.
In Finland, we also invited people to participate
in “pause gymnastics”. Although everyone
participated in pause gymnastics remotely, in
isolation from each other, the sessions still created
a sense of togetherness and gave a lively, active
start to the working day.
Päivi Nieminen
Senior Specialist, HR,
Nakkila
24 Suominen Annual Report 2021
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710
employees
Safety
We focus on safety and accident prevention and have a strong safety culture.
The health and safety of Suominen’s employees is our key priority.
Safety is one of our key people-related targets, and our
aim is to have zero lost-time accidents (LTA). Four LTAs
occurred at Suominen sites in 2021 (1 in 2020) and six out
of our eight sites were able to reach the zero LTAtarget
in2021.
Even though the accident frequency rate (AFR)
increased to 3.04 (0.80) in 2021, the accident severity
rate decreased to 0.05 (0.14). We keep records of all
work-related accidents and near misses and identify
theircauses.
Safety monitoring is part of our daily activities, and in
2021 Suominen implemented a new safety software to
manage all safety-related aspects on a single platform.
CASE | Safety
The safety management systems are certified according
to the ISO 45001 standard in 5 out of the 8 sites. Two of
our sites are scheduled to be certified according to the
ISO 45001 standard during 2022.
Safety during the pandemic
We continued to be aected by the COVID-19 pandemic
in 2021. Our primary focus during the year was to keep
our employees safe and healthy. Suominen monitored the
COVID-19 situation closely and implemented precautions
to protect our employees and to ensure a safe working
environment on our sites.
Zero lost time accidents
atPaulínia site
It is a priority for us to keep our employees safe
and create the safest working environment.
We are constantly highlighting the importance
of safety instruction to our people, and we
implement them through safety walks, in which
anemployee walks through the premises.
Discussing actively about safety topics is the best
way to keep the instruction in mind every day.
We are very happy that we were able to reach
our target of zero lost time accidents in 2021.
Renata Rinaldi
Plant Director, Paulínia
25Suominen Annual Report 2021
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Our safety work
Suominen’s safety work is based
on preventive work, and we have
implemented Life Saving Rules and a
Behavior Based Safety program covering
employees working both at Suominen’s
manufacturing sites and oces.
The Behavior Based Safety program
kept rolling for the eighth year in a row
in 2021. The program emphasizes the
individual’s own responsibility in safety
and focuses on influencing the attitude
and motivation of individuals. The
program includes safety walks, in which
an employee walks through the premises,
identifying both safe and unsafe behaviors
and conditions, and then engages in an
open discussion with other employees.
However, as a precautionary measure,
safety walks were suspended also in 2021
to ensure social distancing in our sites due
to the COVID-19 pandemic. The walks will
start now again as the COVID-19 situation
is getting easier.
Suominen develops safety at the
workplace according to the principle of
continuous improvement and constantly
shares the best practices at individual
plants to benefit the entire plant network.
In improving safety, Suominen places
particular emphasis on influencing
attitudes, behavior, and operating models,
and on building a culture of work safety.
In 2021, we had a special focus on safety-
related topics in internal communication.
Palkit ja käppyrä
Number of lost time
accidents (LTA), own
employees
2019
6
2020
1
2021
4
Number of lost time accidents (LTA),
own employees
0
2
4
6
4
1
6
2021
2020
2019
11
Palkit ja käppyrä
Accident frequency
rate (AFR)
2019
4.95
2020
0.80
2021
3.04
Accident frequency rate (AFR)
0
1
2
3
4
5
3.04
0.80
4.95
2021
2020
2019
Number of accidents per 1,000,000
working hours
14
Palkit ja käppyrä
Accident severity
rate (ASR)
2019
0.12
2020
0.14
2021
0.05
Accident severity rate (ASR)
0.00
0.05
0.10
0.15
0.20
0.05
0.14
0.12
2021
2020
2019
Number of absence days per 1,000
working hours
13
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Low impact manufacturing
For Suominen, environmental responsibility means ecient utilization
of resources with the smallest possible impact on the environment.
We continuously strive to reduce the environmental impacts caused
by ouroperations.
27Suominen Annual Report 2021
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Table 1
Oil-based 41%
41
Wood-based 59%
59
Others 1%
1
Raw materials purchased in 2021
Oil-based 41%
Wood-based 59%
Others 1%
1
Raw materials
Raw materials play a vital role in our business since they account for
around 70% of our expenses. Suominen uses dierent fiber materials,
such as cellulose-based fibers, polypropylene, and polyester, in the
production of nonwovens.
In 2021, the share of raw materials from renewable sources was 59%
(54% in 2020), with most of them being cellulosic fibers such as viscose
and pulp. We support responsible forest management practices, and
we oer nonwovens produced from FSC
®
(FSC-N002523), PEFC™, and
SFI
®
certified raw materials.
Suominen is constantly looking for solutions to decrease the
environmental impact of nonwoven products throughout the value
chain. We actively evaluate new, innovative, and sustainable fibers for our
products. We have a strong focus on ecient utilization of raw materials,
and we continuously work to improve our material eciency even further.
We also strive for the minimization of waste in our production by recycling
and finding alternative outlets for non-recyclable production waste.
The most significant environmental
impacts resulting from the production of
nonwovens include consumption of water
and energy, generation of greenhouse
gases, and landfill waste. We regularly
follow our consumption and emission
levels and have set reduction targets for
each of these.
How do we operate?
Suominen is committed to continuously
improving its production eciency
and the ecient utilization of natural
resources. Environmental responsibility
requires daily commitment and continuous
development. Suominen’s Environmental
Best Practice team shares best practices
and knowledge regarding environmental
matters between our sites and actively
seeks opportunities and solutions to
reduce the environmental impacts from
our operations.
We operate according to the relevant
standardized management systems. All
of our sites are certified according to the
ISO 9001 quality management standard,
and all of our sites’ environmental
management systems are certified
according to the ISO 14001 standard.
Our production sites in Italy, Cressa
and Mozzate, both have energy
management systems certified
according to the ISO50001 standard.
In addition to thelisted standards, local
environmental policies are in place at all
our productionsites.
Suominen is committed to continuously
improving its production eciency and
theecient utilization of natural resources
28 Suominen Annual Report 2021
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Energy
Our energy consumption consists of the usage of gas for heat and
steam generation, and the use of purchased electricity and steam.
Our target is 20% reduction in energy consumption per ton of
product by 2025, the baseline being 2019. In 2021, our energy
reduction result towards this target was 7.1% per ton of product
compared to the baseline. In order to meet our energy eciency
improvement targets, we continue to identify and implement energy-
saving initiatives at our sites.
0.93
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2019
2020
2021
0.92
1.00
2021 pylväs
Energy
consump@o
n
0.93
Palkit ja käppyrä
Energy
consump@
on
Baseline Target
2019
1.0
1.0
0.8
2020
0.92
1.0
0.8
2021
1.0
0.8
Energy consumption per ton of
product (indexed)
Baseline
Target 2025
2
Table 1
Natural gas 43%
43
Electricity 37%
37
Steam 20%
20
Other <0%
0
Energy consumption in 2021
Natural gas 43%
Electricity 37%
Steam 20%
Other <0%
1
Water
Water is an essential resource for Suominen, as it is used in our
nonwovens production processes to bind fibers together into nonwoven
fabrics. Approximately 90% of the water taken into our processes is
returned to water bodies or sanitary sewer systems, which means that
only 10% of our water intake is consumed in our production processes,
mainly through evaporation.
Our water use and discharges are regulated by national or regional
authorities, and we constantly monitor the quality of discharged water.
All water is treated in either our own or municipal water treatment sites
before being discharged.
The wetlaid production technology that is used at two Suominen
production sites requires significantly more water than other production
technologies. Wetlaid production accounts for 75% of Suominen’s total
water intake.
Suominen has evaluated the scarcity of water at our sites by using the
World Resources Institute’s Water Risk Atlas. One of our production sites
is located in a “high risk area” where water can be considered a scarce
resource. The water intake of this site accounts for approximately 1.3% of
Suominen’s total water intake.
Our target is 20% reduction in water consumption per ton of
production by 2025, the baseline being 2019. In 2021, Suominen’s water
consumption target was achieved with result of 20.3% reduction per ton
of product compared to the baseline. We managed to improve our water
eciency at most of our production sites.
0.80
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2019
2020
2021
0.88
1.00
Palkit ja käppyrä
Water
intake
Baseline Target
2019
1.0
1.0
0.8
2020
0.878
1.0
0.8
2021
1.0
0.8
Water consumption per ton of
product (indexed)
Baseline
Target 2025
2021 pylväs
Water intake
0.800
3
Table 1
Surface water 58%
58
Municipal water
supplies 14%
14
Ground water 28%
28
Water intake by source in 2021
Surface water 58%
Municipal water supplies 14%
Ground water 28%
2
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Greenhouse gas emissions
Suominen reports its direct greenhouse gas emissions (Scope 1) and its
indirect greenhouse gas emissions from purchased energy production
(Scope 2) according to the Greenhouse gas protocol. Direct greenhouse
gases originate from the consumption of fossil fuels used mainly for
the generation of process heat. Indirect emissions are caused by the
production of purchased electricity and steam.
Our target is 20% reduction in greenhouse gas emissions per ton of
product by 2025, the baseline being 2019. In 2021, our result towards the
target was 8.8% per ton of product compared to the baseline.
As a part of our work on reducing greenhouse gas emissions, the
decision to shift entirely to fossil-free electricity at all our European
sites was made in 2021. This shift was a remarkable step towards
our greenhouse gas reduction target. Suominen is examining similar
opportunities for its sites in the Americas. In 2021, Suominen also made a
decision to install a solar plant to our site in Alicante.
We are continuously looking for ways to decrease greenhouse gas
emissions from our operations.
0.91
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2019
2020
2021
0.93
1.00
2021 pylväs
Tons of
CO
₂
e
0.91
Palkit ja käppyrä
Tons of
CO
₂
e
Baseline Target
2019
1.0
1.0
0.8
2020
0.93
1.0
0.8
2021
1.0
0.8
Greenhouse gas emissions*
per ton of product (indexed)
Baseline
Target 2025
*Including direct (Scope 1) and
indirect (Scope 2) GHG emissions
3
Waste to landfill
In waste management, Suominen’s first priority is to prevent waste
generation in the first place by improving its material eciency.
Secondarily, we work actively with partners that can use our waste
material for dierent end uses.
Our target is 20% reduction in waste to landfill per ton of product by
2025, the baseline being 2019. In 2021, Suominen performed well in
reducing waste sent to landfill. Our result in reduction was 16.4% per ton
of product compared to the baseline. Three of our eight production sites
are already generating zero waste to landfill.
0.84
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2019
2020
2021
0.98
1.00
2021 pylväs
Tons
0.84
Palkit ja käppyrä
Tons Baseline Target
2019
1.0
1.0
0.8
2020
0.976
1.0
0.8
2021
1.0
0.8
Production waste to landfill
per ton of product (indexed)
Baseline
Target 2025
4
Due to the greenhouse gas calculation method revision,
the greenhouse gas figures for 2019 and 2020 were
restated.
30 Suominen Annual Report 2021
This is Suominen | Sustainability | Corporate Governance | Financial Information
Sustainable nonwovens
The need for more sustainable products has increased rapidly during recent
years. Customers’ growing interest towards more sustainable choices and
legislation are acting as the main drivers. EU’s Single-Use Plastics Directive
(SUPD), which entered into force in 2021, and many other similar initiatives
globally have had a markable impact on raw materials used in the production
ofnonwovens, driving the industry towards sustainable alternatives.
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The market is swiftly changing towards
more sustainable products and we are
well prepared for the market change at
Suominen. We launched our first plastic-
free product already over a decade ago.
We have a wide range of sustainable
nonwoven products for dierent
applications to oer to our customers.
Our plastic-free oering consists
of products that are biodegradable,
compostable, dispersible or ready for
recycling. The products are made of
renewable fibers such as viscose, pulp,
lyocell, cotton orbamboo.
In addition to renewable fibers, we also
provide nonwovens made from other
sustainable sources such as recycled
rPET or PLA. We have a strong focus on
evaluating new innovative and sustainable
fibers in our R&D team. We are actively
cooperating with start-ups and well-
established companies that are developing
new innovative fibers. For example,
Suominen collaborated in 2021 with
Infinited Fiber Company and developed
a nonwoven sheet made from 100%
textilewaste.
Sustainable nonwovens is one of the
four focus areas in our sustainability
agenda. Our target is a 50% increase in the
sales of sustainable nonwovens by 2025
compared to 2019, and to have at least 10
sustainable product launches per year. In
CASE | R&D
New Fiber Center
Our New Fiber Center way of working aims for
onboarding of novel sustainable fibers in close
cooperation with our partners. The approach
combines our versatile, highly experienced R&D
team and our unique technological capabilities.
The pilot lines at our Nakkila and Windsor Locks
sites support our innovation work by, for example,
enabling the testing of prototypes.
Together with our partners, we investigate and
run trials with fibers that typically have not been
used in the nonwovens industry. We currently
have several interesting fibers in our pipeline, such
as recycled content, natural, and 100% cellulosic.
One of our cooperation projects in 2021
was developing a nonwoven material made
from 100% regenerated textile waste. This was
done in collaboration between us and Infinited
FiberCompany.
Mari Rahkola
Senior Manager,
Business Development
We have a strong focus on
evaluating new innovative and
sustainable fibers in our R&D team
32 Suominen Annual Report 2021
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2021, our share of sustainable nonwovens
increased by 47% (compared to 2019). The
target of sustainable product launches was
very well achieved; we had a total of 16
sustainable product launches during 2021.
We take pride in being at the forefront
of providing solutions that address
marketplace needs. Our recent launch of
HYDRASPUN
®
Aquaflo is an example of
eectively addressing emerging trends in
the personal care segment of the market.
The product is made of 100% sustainable
fibers, it delivers premium thickness for a
better consumer experience and delivers
near parity dispersibility to dry toilet tissue.
In addition, the product passes well-
known industry flushability standards.
Continuous development
Sustainability is one of the key themes in
our R&D. We are constantly researching
new potential fibers such as nettle, hemp,
and regenerated cellulose in our New
Fiber Center. Suominen is a pioneer in
producing sustainable nonwovens, and
our R&D team has excellent know-how in
sustainable fibers. Our pilot lines at Nakkila
and Windsor Locks sites support our
innovation work by, for example, enabling
the testing of prototypes. By continuously
developing new and innovative solutions
with a reduced environmental impact,
we are able to provide a comprehensive
oering of sustainable nonwovens to our
customers.
In addition to creating new sustainable
products, we see the importance
of evaluating and minimizing the
environmental impacts of all our products.
Providing carbon footprints for products is
a rising trend due to ambitious greenhouse
gas reduction targets set by both societies
and companies. In 2021, we evaluated
environmental impacts of our products by
calculating their carbon footprints. This
means that greenhouse gases associated
with the product in dierent stages of its
value chain are added up to gain a full
understanding of the climate impact of
each product.
Carbon footprint values provide a
comparison between our products
within a product portfolio, enabling our
customers to find the most climate-
friendly option for their applications.
During the year, we developed and
launched digital Suominen’s Climate App.
The Climate App provides comparable
data of our products so that our
clients are able to choose a suitable
product with lower greenhouse gas
emissions. By oering products with a
lower environmental burden without
compromising on quality, we are able
to support our customers to reduce
the environmental impact of their own
products and to achieve their own
sustainability goals.
Our aim is to grow our sustainable
product portfolio even further for the
benefit of our customers.
Suominen is a pioneer in
producing sustainable nonwovens,
and our R&D team has excellent
know-how in sustainable fibers
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Corporate citizenship
Suominen operates responsibly and consistently throughout the world. We
promote responsible operations in our supply chain and in society at large
by respecting human rights, being a good corporate citizen and minimizing
the environmental impact of our own operations. We adhere to high ethical
standards in all our activities.
Suominen is a global company with
operations on three continents. We
collaborate with a significant number
of stakeholders in a multicultural
environment every day. We develop
our stakeholder relationships in a fair
and responsible way and strive for
transparency in all our communications.
Through our global operations, we
provide employment and business
opportunities, generating a positive
economic contribution to the surrounding
society. Our tax footprint arises from the
business operations in the countries where
we operate. We are committed to full
compliance with all applicable national
and international laws, regulations,
and generally accepted practices and
refrain from all unfair business practices,
such as fraud, corruption, and bribery.
Suominen supports the United Nations
GlobalCompact.
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Human rights
Suominen is committed to the United Nations Guiding
Principles on Business and Human Rights and the
International Labor Organization Declaration on
Fundamental Principles and Rights at Work. Suominen is
committed as an employer to respecting human rights.
Suominen does not tolerate any form of discrimination,
forced or compulsory labor, or the use of child labor.
Suominen works consistently to ensure that human rights
are respected across the value chain. Suominen requires
its raw material suppliers to commit to ethical conduct,
full compliance with all applicable national laws and
international treaties, and to respect human rights as set
forth in internationally recognized standards andtreaties.
Code of Conduct
Our daily operations are guided by Suominen’s Code
of Conduct and other related policies that are the
cornerstones of our fair and sustainable business
practices. Suominen renewed its Code of Conduct during
2020, and it was published at the beginning of 2021. The
Code sets out Suominen’s expectations for doing business
responsibly, ethically, and consistently, according to our
values, our policies, and the law.
Among the key issues addressed by the Code of
Conduct are fair business practices, financial regulations,
human rights, and the environment. The Code has
been adopted by Suominen Corporation and its
subsidiaries and it applies to everybody working for the
company, everywhere in the world. In the latter half of
2021, a mandatory training program regarding Suominen’s
renewed Code of Conduct was rolled out to all employees
and 82% of all employees had completed the training by
the end of the year.
Our requirements for our suppliers are described in the
Supplier Code of Conduct, which discusses issues such as
human rights, wages and working hours, child labor and
forced labor, corruption and bribery, and the environment.
We require our business partners to act responsibly, and
all our suppliers must comply with our Supplier Code
ofConduct.
In accordance with the sustainability agenda’s targets,
we will establish a process for third party supplier
sustainability audits.
Read more
Suominen‘s Code of Conduct and the Supplier
Code of Conduct can be found at www.suominen.fi.
CASE | Corporate Citizenship
Code of Conduct renewal
Our renewed Code of Conduct was launched in
2021. The renewal was one of the targets in our
sustainability agenda. The Code forms a basis for
our responsible business practices, and it applies
to everybody working for the company, all over
the world. In the latter part of 2021, we arranged
mandatory training for all our employees:
E-training for all white-collar employees and
onsite training for blue-collar employees. By the
end of year, 82% of the personnel had participated
in the training. Training will continue until all
employees are trained, and the Code will be
part of the onboarding process for each new
employee.
Kathleen Vita
Senior Manager, HR,
Americas
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Stakeholder dialogue
Suominen’s stakeholders are entities or
individuals that have an impact on or are
impacted by our business. Our stakeholder
groups dier greatly and thus the focus
areas and the channels of communication
vary according to each groups’ interests
and needs. Continuous interaction
with our stakeholders is a key aspect in
Suominen’s approach to sustainability.
Stakeholder dialogue provides
important insights into the expectations
and concerns our stakeholders have and
helps us to identify the opportunities and
risks in our operating environment. We
want to engage in open and continuous
dialogue with our stakeholders and strive
to transparent communication through
various channels.
Suominen conducted a sustainability
materiality assessment in 2019. The
Continuous interaction with
our stakeholders is a key aspect in
Suominen’s approach to sustainability
process included a stakeholder survey
sent to stakeholders – such as customers,
employees, institutional investors,
suppliers, industry associations and
owners – and interviews with key
stakeholders. As a result, the six most
material sustainability topics for Suominen
were chosen: eco-friendly products,
health and safety, energy eciency,
waste prevention, financial stability and
employee engagement. The results of the
assessment served as the basis for our
sustainability agenda 2020–2025.
In 2021, Suominen conducted the
stakeholder survey again to ensure
validity of the most important material
sustainability topics defined in 2019. The
stakeholder survey was conducted in a
web-based platform, and it was open to
all our stakeholders in the second part of
2021. The results of the survey confirmed
that the key objectives and focus areas
on our Sustainability Agenda 2020–2025
remain valid and correspond to our
stakeholders’ expectations.
Read more about our stakeholder
cooperation and engagement channels
from the table on next page.
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STAKEHOLDER
GROUP
EXPECTATIONS AND
INTERESTS
MEETING STAKEHOLDER
EXPECTATIONS
ENGAGEMENT
CHANNELS
Employees - Safe working environment
- Compensation and benefits
- Development opportunities
- Equal treatment
- Well-being and positive
workplaceculture
- Continuous development of safety
at workplace
- Fair and equal compensation
and benefits
- Performance Development Process
including individual competence
development plans
- HR principles and blind recruiting
- Open communication
- Code of Conduct
- Daily interaction
- Global intranet, internal newsletter
- Global employee engagement
survey and local pulse surveys
- Performance development
discussions
- Stakeholder survey
Suppliers - Long-term partnership
- Open communication and
co-operation
- Payment for materials and services
- Continuous co-operation
- Smooth and ecient raw material
quality assurance process
- Supplier Code of Conduct
- Meetings and other direct contacts
- Requests for tender and contracts
- Supplier Code of Conduct
- Stakeholder survey
Customers - Product quality and safety
- Innovation and product
development
- Reducing environmental impact
- Responsible fiber sourcing
- Value for the customer
- Long-term partnership
- Cost competitiveness
- Quality and safety assurance
through audits and certifications
- Sustainable product portfolio
and product development
withcustomers
- Development of expertise
- Continuous co-operation and
onsite visits
- Participation in exhibitions and
trade fairs
- Code of Conduct
- Meetings and other direct contacts
- Exhibitions and other industry
events and industry media
- External communication,
e.g., customer newsletter
- Audits and certificates
- Customer and stakeholder surveys
- Customer service
- Requests for tender and contracts
Investors,
shareholders,
analysts
- Market value and dividends
- Sustainable growth
- Accurate, consistent, and reliable
information
- Risk assessment and management
- Product development
- Sustainability
- Communication based on Finnish
laws, EU directives, stock exchange
rules and regulations
- Implementation of our strategy
aiming for growth and profitability
- Implementation of our
sustainability agenda
- Transparent reporting,
responsibility reporting based
onGRI standard
- Code of Conduct
- Annual General Meeting
- Quarterly and annual reporting
- Stock exchange and press releases
- Shareholder and analyst events
- Website and other digital channels
- Stakeholder survey
Political decision-
makers, public
authorities, NGOs
- Regulatory compliance
- Responsible supply chain
- Responsible operations
- Compliance with laws and
regulations
- Whistleblowing channel
- Responsibility reporting based
onGRI standard
- Code of Conduct
- Reporting and other external
communication
- Direct contacts
Society and local
communities
- Fair employment practices
- Responsible and sustainable
production
- Regulatory compliance
- Tax contribution
- Jobs and fair compensation
- Good corporate citizenship
- Tax contribution
- Code of Conduct
- Media
- External communication
- Events
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Tax footprint
Suominen’s tax footprint represents the
economic impact on society arising from
Suominen’s operations in the countries
where it operates. Suominen’s business
operations result in liabilities to pay taxes
and similar payments, as well as in a
liability to collect and remit taxes and
similar payments that arise purely from the
business activities of the group companies.
Suominen’s tax footprint arises purely
from the business operations in the
countries where it operates and Suominen
has not entered into any arrangements
aiming to change or rearrange its tax
burden from what arises from normal
business operations. The trading of goods
between Suominen group companies is
extremely limited. The group companies
receiving intra-group services are charged
a service fee. The pricing of the service fee
is in line with the arm’s length principle.
Suominen has companies only in those
five countries – Brazil, Finland, Italy, Spain
and the United States – where it has
both production and sales operations.
Inrespect of taxes and similar payments,
Suominen applies the laws and regulations
of each country.
The main markets of the Finnish group
companies are abroad. Due to this,
38 Suominen Annual Report 2021
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the export sales of these companies
significantly exceed their domestic sales.
No value added tax is levied on export
sales. This leads to a situation where the
Finnish group companies’ deductible value
added tax on their purchases subject to
value added tax is considerably higher
than the value added tax they remit
based on their taxable sales. As a result,
Suominen receives a refund of value
added tax in Finland.
Suominen’s tax footprint includes not
only the taxes and similar payments that
are group companies’ costs but also
the taxes and similar payments which
the group companies collect and remit,
such as indirect taxes. Deferred taxes,
which arise from the timing dierences
between taxation and accounting and are
recognized in the financial statements, are
not included in the tax footprint.
In 2021, Suominen employed on average
709 people in its operations. As a result,
Suominen generated a positive economic
contribution to the surrounding society
in the form of employees’ income taxes,
as well as social security contributions by
both the company and the employees.
Thus, Suominen’s tax footprint includes
also the collected and remitted employees’
income taxes as well as social security
contributions, but the employer’s taxes
are clearly separated from the employees’
taxes and payments in the report.
Suominen’s corporate income taxes
have been significantly aected by tax
losses generated in the past in certain
countries where Suominen operates.
Based on local tax laws and regulations,
tax losses are normally carried forward
and deducted from the taxable profits
generated in the future. In 2021,
Suominen’s taxable result did not incur
major corporate income tax payments in
Finland, as it has had tax losses carried
forward from past years. Suominen
is subject to group tax consolidation
methods in several countries based on
each country’s tax laws and regulations,
which eectively means that Suominen’s
local companies are taxed on the local
consolidated taxable income.
During the previous reporting period,
Suominen utilized in the USA the
COVID-19 related tax reliefs, which
allowed companies to carry back losses
to past years. This resulted in Suominen
receiving a federal corporate income tax
refund from prior years and decreased the
total federal corporate income taxes for
2020.
The group companies also pay property
and real estate taxes based on the land
and buildings they own as well as dierent
fiscal payments levied, for example, on
manufacturing operations. Suominen does
not consider these as indirect taxes to be
collected and remitted but as taxes that
are costs for the Group companies.
Suominen’s tax footprint arises purely
from the business operations in the
countries where it operates
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Taxes and similar payments borne
 
EUR thousand Finland Other countries Finland Other countries
Corporate income tax, tax on profit -, -, - -,
Property taxes* - - - -
Employer contributions and taxes -, -, -, -,
VAT as expense - - - -
Custom duties on export** - - - -
Custom duties on import** - -, - -,
Excise duties  - - -
Other taxes and similar payments - - - -
TOTAL -, -, -, -,
Taxes and similar payments collected and paid
 
EUR thousand Finland Other countries Finland Other countries
Net VAT , -, , -,
Payroll taxes and similar payments collected
and paid -, -, -, -,
Withholding taxes on various payments - - - -
TOTAL - -,  -,
*Taxes on real estates.
**Custom duties are borne by the company importing or exporting goods. Custom duties are not collected and/or paid by some other tax payer. For these reasons custom duties are
reported as taxes borne.
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Reporting principles
Suominen publishes its sustainability report as part of
its Annual Report. The previous sustainability report,
covering 2020, was published in March 2021.
The reporting period for all presented data is one
calendar year (January 1–December 31, 2021), and the
enclosed historical data encompasses the last two or
three years, depending on the topic.
Suominen is reporting according to the Core option
of the Global Reporting Initiative (GRI) standards. This
means that our reporting includes all General Disclosures
required by the Core options and Sector Disclosures
relevant to Suominen. Suominen’s sustainability
information for 2021 was assured by an independent
assurance provider, Mitopro Oy. The limited assurance
was done according to the Accountability AA1000
Assurance Standard. The scope of the assured information
is indicated in the independent assurance report on pages
52–54 of this report.
The basis of Suominen’s sustainability reporting is a
materiality assessment, which was conducted for the
first time in 2019. In 2021, Suominen conducted the
stakeholder survey again on a web-based platform
to ensure the validity of the most important material
sustainability topics defined in 2019. The results of the
survey confirmed that the key objectives and focus areas
in our Sustainability Agenda 2020–2025 remain valid.
Economic responsibility
Figures related to economic responsibility are based on
Suominen’s consolidated financial statements, which are
prepared in accordance with the International Financial
Reporting Standards (IFRS), including the International
Accounting Standards (IAS) and interpretations issued
by the International Financial Reporting Interpretations
Committee (SIC and IFRIC). The consolidated financial
statements include the financial statements of Suominen
Corporation and its subsidiaries. The functional and
reporting currency of the parent company is the
euro, which is also the reporting currency used in
the consolidated financial statements. The functional
currencies of subsidiaries are determined by the primary
economic environment in which they operate.
People and safety
Information regarding the total number of personnel is
reported on the basis of our financial statements, with
more detailed human resources data being derived from
separately collected statistics. This data represents the
situation at the end of 2021. Incident data is collected
continuously, using the group-wide accident reporting
system covering all Suominen employees. The calculation
principles and boundaries for each indicator are explained
in more detail in the GRI index.
Minimizing environmental impacts
Consolidated environmental and energy data covers all
our production units. Oces and other premises with
no production activities are excluded from this data, due
to the materiality principle. Consolidated environmental
data is collected on a monthly basis from Suominen’s
production units, based on invoices and consumption
information, while some information is based on
separately collected statistics.
The Windsor Locks site in Connecticut, USA, is operated
jointly with Ahlstrom-Munksjö Oyj: only consumption
data with regard to the environmental impacts of
Suominen’s production lines is taken into account in the
environmental figures. Suominen calculates its Scope
1 and 2 greenhouse gas emissions according to the
Greenhouse gas protocol. The calculation principles and
boundaries for each indicator are explained in more detail
in the GRI index.
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GRI index
GRI STANDARD LOCATION COMMENTS
OMISSIONS AND
REASONS FOR OMISSIONS
GRI 102: General disclosure
Organizational profile
102-1 Name of the
organization
See comments Suominen Corporation
102-2 Activities, brands,
products, and services
AR 3
102-3 Location of headquarters See comments Karvaamokuja 2 B, 00380 Helsinki,
Finland
102-4 Location of operations AR 3
102-5 Ownership and legal
form
See comments Suominen Corporation is a public
company and its shares are listed on
Nasdaq Helsinki.
102-6 Markets served AR 3, 12–13
102-7 Scale of the organization AR 3, 8, 10–11, 98
102-8 Information on
employees and other
workers
AR 3, 22–24, 41, 47,
see comments
The Windsor Locks plant in CT, USA is
co-operated with Ahlstrom-Munksjö
Oyj and there a significant amount of
work is performed by workers who are
not Suominen’s employees. Otherwise,
contractors are mainly used in dierent
maintenance and construction work,
which are typically seasonal in nature.
There is limited seasonal variation during
vacation periods at our plants.
102-9 Supply chain AR 9–11
102-10 Significant changes to
the organization and its
supply chain
AR 4–6
102-11 Precautionary Principle
or approach
See comments Suominen’s risk management process
enables the company to manage
risks in order to avoid any harm to the
environment and ensure the continuity of
its operations.
102-12 External initiatives AR 34–35
102-13 Membership of
associations
AR 47
Strategy
102-14 Statement from senior
decision-maker
AR 4–6
102-15 Key impacts, risks, and
opportunities
AR 4–6, 91–94
Ethics and integrity
102-16 Values, principles,
standards, and norms of
behavior
AR 14–16, Code of Conduct,
Supplier Code of Conduct
102-17 Mechanisms for advice
and concerns about
ethics
Code of Conduct
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GRI STANDARD LOCATION COMMENTS
OMISSIONS AND
REASONS FOR OMISSIONS
Governance structure
102-18 Governance structure AR 56
102-22 Composition of the
highest governance
body and its committees
AR 57–59
102-23 Chair of the highest
governance body
AR 58
102-35 Remuneration policies AR 66–74
102-36 Process for determining
remuneration
AR 66–74
Stakeholder engagement
102-40 List of stakeholder
groups
AR 37
102-41 Collective bargaining
agreements
AR 47
102-42 Identifying and selecting
stakeholders
AR 36–37
102-43 Approach to stakeholder
engagement
AR 36–37
102-44 Key topics and concerns
raised
AR 36–37
Reporting practice
102-45 Entities included in the
consolidated financial
statements
AR 120
102-46 Defining report content
and topic Boundaries
AR 18, 41
102-47 List of material topics AR 18
102-48 Restatements of
information
AR 41, 48, 49
102-49 Changes in reporting AR 41
102-50 Reporting period AR 41
102-51 Date of most recent
report
AR 41
102-52 Reporting cycle AR 41
102-53 Contact point for
questions regarding the
report
See comments Noora Rantanen, Manager,
Sustainability & Marketing
firstname.lastname@suominencorp.com
102-54 Claims of reporting in
accordance with the GRI
Standards
AR 41
102-55 GRI content index AR 42–46
102-56 External assurance AR 52–54, see comments Suominen’s sustainability report
2021 has been externally assured by
an independent assurance provider
MitoproOy.
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GRI STANDARD LOCATION COMMENTS
OMISSIONS AND
REASONS FOR OMISSIONS
GRI 103: Management approach
103-1 Explanation of the
material topic and its
Boundary
AR 18, 41
103-2 The management
approach and its
components
AR 51
103-3 Evaluation of the
management approach
AR 51
ECONOMIC STANDARDS
GRI 201: Economic performance
201-1 Direct economic
value generated and
distributed
AR 47
GRI 205: Anti-corruption
205-1 Operations assessed
for risks related to
corruption
AR 85
205-2 Communication and
training about anti-
corruption policies and
procedures
AR 35, 85
205-3 Confirmed incidents of
corruption and actions
taken
See comments No incidents in 2021 reported.
GRI 206: Anti-competitive behavior
206-1 Legal actions for anti-
competitive behavior,
anti-trust, and monopoly
practices
See comments No cases in 2021 reported.
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GRI STANDARD LOCATION COMMENTS
OMISSIONS AND
REASONS FOR OMISSIONS
ENVIRONMENTAL STANDARDS
GRI 302: Energy
302-1 Energy consumption
within the organization
AR 29, 48
302-4 Reduction of energy
consumption
AR 29, 48
GRI 303: Water and Euents (2018)
303-1 Interactions with water
as a shared resources
AR 29, 48
303-2 Management of water
discharge-related
impacts
AR 29, see comments Our water use and discharges are
regulated by the national or regional
authorities and we monitor the quality
and volume of discharged water
according to the requirements set by
authorities.
303-3 Water withdrawal by
source
AR 29, 48 Breakdown by fresh water and
other water as no other water
isused.
303-4 Water discharge AR 29, 48 Breakdown by fresh water and
other water as no other water
isused.
303-5 Water consumption AR 29, 48, see comments Breakdown by fresh water and
other water as only fresh water is
used. Change in water storages is
not reported as it is not relevant for
our operations.
GRI 305: Emissions
305-1 Direct (Scope 1) GHG
emissions
AR 30, 49
305-2 Energy indirect (Scope 2)
GHG emissions
AR 30, 49
305-5 Reduction of GHG
emissions
AR 30, 49
GRI 306: Waste (2020)
306-1 Waste generation and
significant waste-related
impacts
AR 30, 49
306-2 Management of
significant waste-related
impacts
AR 30, 49
306-3 Waste generated AR 30, 49, see comments
Breakdown of hazardous waste
is omitted as the amount of
hazardous waste accounts less
than
0.5% of the total amount
of generated waste, which is
not material amount.
GRI 307: Environmental compliance
307-1 Non-compliance with
environmental laws and
regulations
See comments No significant fines in 2021. No
significant spills in 2021.
GRI 308: Supplier environmental assessment
308-1 New suppliers that
were screened using
environmental criteria
AR 35, see comments 100% of the new raw material suppliers
were screened using environmental
criteria
45Suominen Annual Report 2021
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GRI STANDARD LOCATION COMMENTS
OMISSIONS AND
REASONS FOR OMISSIONS
SOCIAL STANDARDS
GRI 401: Employment
401-1 New employee hires and
employee turnover
AR 50
GRI 403: Occupational health and safety (2018)
403-1 Occupational health
and safety management
system
AR 25–26, 41, 51
403-2 Hazard identification,
risk assessment, and
incident investigation
AR 25–26, 41, 51
403-3 Occupational health
services
AR 22–24, 25–26, 41, 51,
see comments
Not reported in detail.
403-4 Worker participation,
consultation, and
communication on
occupational health and
safety
AR 22–24, 41, 51
403-5 Worker training on
occupational health and
safety
AR 22–24, 41, 51
403-6 Promotion of worker
health
AR 22–24, 51
403-7 Prevention and
mitigation of
occupational health and
safety impacts directly
linked by business
relationships
AR 22–24, 25–26, 41, 51
403-9 Work-related injuries AR 25–26, 51, see comments Main types of injuries are strains, cuts and
bruising.
GRI 404: Training and education
404-3 Percentage of
employees receiving
regular performance
and career development
reviews
AR 23, 50
GRI 405: Diversity and equal opportunity
405-1 Diversity of governance
bodies and employees
AR 50, 59
GRI 406: Non-discrimination
406-1 Incidents of
discrimination and
corrective actions taken
See comments No incidents in 2021 reported.
GRI 414: Supplier social assessment
414-1 New suppliers that were
screened using social
criteria
AR 35, see comments 100% of the new raw material suppliers
were screened using social criteria.
GRI 418: Customer privacy
418-1 Substantiated complaints
concerning breaches of
customer privacy and
losses of customer data
See comments No incidents in 2021 reported.
GRI 419: Socioeconomic compliance
419-1 Non-compliance with
laws and regulations in
the social and economic
area
See comments No incidents in 2021 reported.
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GRI Appendix
GRI 102-8 Information on employees
and other workers
a. Total number of employees by employment contract
by gender
Women Men
Permanent  
Temporary 
b. Total number of employee by employment contract
by region
Europe Americas
Permanent  
Temporary 
c. Total number of employees by employment type
Women Men
Full-time  
Part-time
GRI 102-13 Memberships in associations
Suominen’s key memberships by country. Suominen is also involved in
dierent professional networks and chambers of commerce.
Corporate
EDANA
INDA Association of the Nonwoven Fabrics Industry
UN Global Compact
Finland
Finnish Business and Society (FiBS)
Finnish textile and fashion
Brazil
ABINT Nonwovens Industry Brazilian Association
Spain
Agrupación Textil Alcoyana
AITEX Asociación de investigación de la industria textile
ATEVAL Asociación de Empresarios del Textil de la Comunidad
Valenciana
GRI 102-41 Collective bargaining agreements
Overall, 60% of Suominen employees are covered by collective
bargaining agreements. Participation in collective bargaining
agreements varies significantly between regions; South America 100%,
Europe 100% and North America 0%. This reflects common practice in
these regions.
GRI 201-1 Direct economic value generated
and distributed
Revenue, EUR million
Net sales .
Other operating income .
Revenues from financial investments .
Total revenue .
Operating costs, EUR million
Direct production expenses: materials and services -.
Indirect production expenses, R&D and SGA: services
and other expenses -.
Other operating expenses .
Total operating costs - .
Employee wages, salaries and benefits, EUR million
Wages and salaries -.
Pensions -.
Other personnel expenses -.
Total employee wages, salaries and benefits -.
Payments to providers of capital, EUR million
Interest expenses -.
Other financial expenses -.
Total payments to providers of capital -.
Payments to government, EUR million
Current income tax charge for the year and previous
years -.
Other income taxes .
Total payments to government -.
Retained in business, EUR million
.
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Energy
GRI 302-1: Energy consumption within the organization
GRI 302-4: Reduction of energy consumption
Energy consumption, GJ   
Non-renewable fuel consumed
Natural gas - a ,. ,. ,.
Other non-renewables - a ,. ,. ,.
Renewable fuel consumed - b
Purchased electricity - c ,. ,. ,.
Purchased steam - c ,. ,. ,.
Total energy consumption - e ,,. ,,. ,,.
Change in total energy consumption - -,. ,. -,.
Energy sold outside organization is not reported as Suominen does not generate any energy to be sold outside the
organization. Other non-renewable fuel consumed (GRI 302-1 a) figure has been restated for the years 2020 and 2019 due
to one energy source that was not counted. However, the values of total energy consumption and change in total energy
consumption were correct.
Water and euents
GRI 303-3: Water withdrawal
GRI 303-4: Water discharge
GRI 303-5: Water consumption
All areas Areas with water stress
Water withdrawal by source, ML      
Surface water - a&b , , ,
Ground water - a&b , , ,
Seawater - a&b
Produced water - a&b
Third-party water - a&b      
Total , , ,   
Water discharge by type of destination, ML
All areas Areas with water stress
     
Surface water - a&c , , ,
Ground water - a&c
Seawater - a&c
Third-party water - a&c      
Total , , ,   
Water consumption - a&b      
Figures presented here are based on the data collected from Suominen
sites. World Resources Institute’s “Aqueduct Water Risk Atlas” is used for
defining areas with water stress. Areas with water stress are defined as
areas where the ratio of annual water withdrawal to annual renewable
water supply is high or extremely high. Our water intake and discharge
are regulated by national or regional authorities. For certain chemicals
threshold limits are set by the authorities and the quality of discharged
water is followed according to the monitoringplan.
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Emissions
GRI 305-1 Direct (Scope 1) GHG emissions
GRI 305-2 Energy indirect (Scope 2) GHG emissions
GRI 305-5: Reduction of GHG emissions
Greenhouse gas emissions, tons of CO₂e   
Direct (Scope 1) emissions - , , ,
Biogenic Direct (Scope 1) emissions -
Energy indirect (Scope 2) emissions – market based - , , ,
Energy indirect (Scope 2) emissions – location based - , , ,
Total emissions (Scope 1 and Scope 2 – market based) , , ,
Change of total emissions - -, , -,
Waste
306-1: Waste generation and significant waste-related impacts
306-2: Management of significant waste-related impacts
306-3: Waste generated
Waste generated, in metric tons (t)
  
Non-hazardous waste - Waste to landfill - a ,. ,. ,.
Non-hazardous waste - Energy recovery - a . ,. ,.
Non-hazardous waste - Waste for recycling - a ,. N/A N/A
Non-hazardous waste - Waste to re-use - a . N/A N/A
Non-hazardous waste - Waste to incineration - a . N/A N/A
Hazardous waste - a . . .
Total waste generated - a ,. N/A N/A
Figures for 2021 are excluding Windsor Locks site.
Suominen’s direct (Scope 1) greenhouse gas (GHG) emissions are
from the sources owned by Suominen and they are expressed as
CO₂e, which covers greenhouse gases as described in Kyoto Protocol
(CO₂,CH₄, N₂O, HFCs, PCFs, SF₆ and NF₃). No biogenic emissions are
generated form our operations as only fossils fuels are used.
In 2021, during the GRI assurance project, we revised Scope 2
greenhouse gas emission calculation and also updates were made to
the greenhouse gas data. Scope 2 emissions are calculated according
to the Greenhouse Gas Protocol’s “A Corporate Accounting and
The waste fractions that Suominen produces in its own operations
origin from the nonwoven production process (e.g. trim waste) and
packaging of nonwoven roll goods. Suominen’s waste fractions are
mainly non-hazardous waste, only very small amount of hazardous
waste is produced during production coming from use of some
colorants and binders. Suominen purchases its raw and packaging
materials therefore, the waste from these materials origins at suppliers’
sites. After Suominen’s production site, nonwovens will be converted
into a sin-gle-use products such as wipes and products will be
properly packed. Eventually the nonwo-ven end product will end up
as a waste and its waste management depends on properties and
materials used in the end product and its packaging.
Reporting Standard” and covers emissions from purchased electricity
and steam. Market-based emissions are used for target setting and
following our progress. Greenhouse Gas Protocol’s calculation
hierarchy and related emissions factors are used for the calculation of
marked- and location-based methods. Market-based emissions are
mainly derived from the local suppliers or when appropriate residual
mixes (RE-DISS project) are used. Emissions factors used for local-
based emissions are derived from USA’s national statistics or eGRID
database.
In waste management, Suominen’s first priority is to prevent waste
generation in the first place by improving its material eciency and
material circularity in own operations. Secondarily, we work actively
with partners that can reuse our waste material for dierent end uses.
Suominen is also producing an increasing amount of sustainable
products. Sustainable products are produced from renewable, plastic-
free or recycled raw materials. Products made of renewable raw
materials potentially have multiple ways of disposal and products made
of recycled raw materials increases circularity of raw materials and
prevents waste.
For the reporting years 2020 and 2019, the GRI 306: Euents and
waste (2016) reporting standard was used. In 2021, waste reporting
was updated to GRI 306 Waste (2020) thus, not all waste fractions were
reported for years 2020 and 2019.
49Suominen Annual Report 2021
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GRI 401-1: New employee hires and
employee turnover
Employee distribution and turnover
Europe Americas Total
Number of employees
By age group
Under 30   
30–50   
Over 50   
By gender
Women   
Men   
Number of new hires
By age groups
Under 30   
30–50   
Over 50 
By gender
Women  
Men   
Employee turnover
By age group
Under 30   
30–50   
Over 50   
By gender
Women   
Men   
Total employee turnover rate % % %
GRI 404-3 Percentage of employees receiving
regular performance and career development
reviews
Percentage of employees receiving regular performance
and career development review
Men Women
White collar % %
Blue collar % %
GRI 405-1 Diversity of governance bodies and
employees
Diversity of Executive Team
By age group Men Women
Under 30
30–50
Over 50
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Our management approach
PEOPLE AND SAFETY
LOW IMPACT
MANUFACTURING
SUSTAINABLE
NONWOVENS CORPORATE CITIZENSHIP
Description and
purpose of the
management
method
Our work is guided by our Code of Conduct and our values: ownership, teamwork, performance, integrity. The purpose of
the management method is to ensure the implementation of the strategy and the achievement of the targets as planned.
Policies and
commitments
- Code of Conduct
- Suominen HR principles
and policies
- Compensation and
benefits policy
- Blind hiring principle in
use when possible
- Safety principles and
Behavior Based Safety
program
- ISO 45001 in Alicante,
Cressa, Green Bay,
Mozzate and Nakkila
plants
- Privacy policy
- Travel and expense policy
- Information security
guidelines
- Code of Conduct
- ISO 14001 certification in
all plants
- ISO 9001 in all plants
- ISO 50001 in Cressa and
Mozzate plants
- Local environmental
policy in all plants
- Supplier Code of Conduct
- Suominen oers
traceability certifications
for FSC
®
, PEFC & SFI,
as well as skin-safe
certifications like
OEKO-TEX
- Code of Conduct
- Supplier Code of Conduct
- Competition law
compliance policy
- Credit policy
- Disclosure policy
- Gift, entertainment and
anti-bribery policy
- Insider policy
- Related party policy
- Risk management policy
- Sponsorship and
donationpolicy
- Tax policy
- Treasury policy
Objectives - We focus on increasing
employee engagement
- We continue to build a
high performance culture
- We continue to strengthen
our safety culture
- We continuously strive to
decrease environmental
impacts of our operations
- We are the frontrunner in
sustainable nonwovens
- We promote responsible
business practices in
our operations and
supplychain
- We communicate openly
and transparently about
our operations
Resources and
responsibilities
Leading functions:
HR and HSEQ
Leading functions:
Operations and HSEQ
Shared responsibility for
several functions
(e.g., Business
Development,
Sourcing, R&D and
Operations)
Leading functions:
Legal, Sourcing and Finance
The leading functions of each theme are responsible for implementation, monitoring, management, and evaluation of
progress towards the goals set for each area. The Communications & IR function coordinates the work and supports other
functions when needed.
Grievance
mechanism
Suspected misconduct can be reported, e.g., to the supervisor, the supervisor’s supervisor, local or corporate HR function,
or through an externally managed SpeakUp Line. Suominen does not accept any retaliation against anyone who reports a
suspected violation of the Code of Conduct or other policies in good faith. Further, no retaliation will be tolerated against
anyone who participates or assists in the investigation of a report by Suominen.
Evaluation
of the
management
method
Compliance, internal
control and audits, incident
reports, assessment of
occupational safety risks,
safety observation reports
submitted by employees,
mandatory Code of Conduct
training, performance and
development discussions,
employee engagement
surveys, one-to-one
discussions and employee
exitsurveys
Compliance, external audits
including ISO 9001:2015
and ISO 14001:2015 audits,
incident reports and
monitoring and evaluating
our KPIs
Compliance, audits by
customers, monitoring and
evaluating our KPIs, audits
our supply chain
Compliance and evaluation
of the eciency of our
policies
51Suominen Annual Report 2021
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Independent assurance statement
To the Management and Stakeholders of Suominen
Scope and Objectives
The Management of Suominen Oyj commissioned us
to perform a limited assurance engagement over the
sustainability information presented in the Sustainability
section of Suominen Annual Report 2021 (“the Report”)
for the reporting period 1st January to 31st December
2021. The assurance engagement was conducted
in accordance with the AA1000 Assurance Standard
(AA1000 AS v3, 2020) as a type 2 engagement.
We have duly performed an independent external
assurance, the objective of which was to evaluate:
- Suominen’s adherence to the AA1000 Accountability
Principles (2018) of inclusivity, materiality,
responsiveness and impact;
- the reliability of performance information presented
in the Report according to the Principles for defining
report quality in the GRI Standard 101 Foundation
(2016); and
- the compliance with the GRI Standards in accordance
criteria at the Core option.
Responsibilities
Suominen’s Management is responsible for the
preparation of the Report and the performance data
and statements presented therein, which the Suominen
Executive Team has approved. Our responsibility as
assurance providers is to express a conclusion based on
our work performed. The criteria used for our assessment
include the GRI Standards and Suominen’s own internal
reporting guidelines.
Assurance Provider’s Independence and
Competence
We have conducted our assessment as independent and
impartial from the reporting organisation. We were not
committed to any assignments for Suominen that would
conflict with our independence, nor were we involved
in the preparation of the Report. Our team consists of
competent and experienced corporate responsibility
reporting experts, who have the necessary skills to
perform an assurance process.
Basis of Our Opinion
Assurance providers are obliged to plan and perform the
assurance process to ensure that they collect adequate
evidence for the necessary conclusions to be drawn. The
procedures selected depend on the assurance provider’s
judgement, including their assessment of the risk of
material misstatement adhering to the reporting criteria.
Our opinion is based, among other things, on the
following procedures performed:
- Interviews with senior management representatives
to gain an understanding of the major impacts, risks
and opportunities related to Suominen’s sustainability
agenda;
- Assessment of the procedures Suominen has in place
to ensure the inclusivity of stakeholder engagement
processes, the identification of material stakeholder
expectations, the responsiveness to stakeholder
concerns and the assessment of impacts;
- Interviews with Suominen’s specialists responsible for
corporate sustainability performance data collection
and calculations;
- Review of systems and procedures to generate, collect
and report corporate sustainability performance data for
the Report;
52 Suominen Annual Report 2021
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- Review of data sources, data generation and reporting
procedures at the Suominen’s manufacturing sites in
Nakkila, Finland and Green Bay in the United States;
- Reviewing data at source and following this through to
the sustainability information presented in the Report;
- Assessing whether the evidence, measurements,
and scope of the performance data is prepared in
accordance with the Criteria; and
- Reviewing the Report and narrative accompanying the
performance indicators in the Report with regard to the
Criteria.
Inherent limitations
Our assurance relies on the premise that the data and
information provided by Suominen to us as part of our
review procedures have been provided in good faith.
Because of the selective nature (sampling) and other
inherent limitations of both procedures and systems
of internal control, there remains the unavoidable
risk that errors or irregularities may not have been
detected. For instance, greenhouse gas (GHG) emissions
calculations are subject to inherent limitations, given
the nature and the methods used for determining such
data. Finally, the selection of dierent but acceptable
measurement techniques may result in materially dierent
measurements.
Conclusions
Adherence to AA1000 Accountability Principles
- Inclusivity: Suominen has a stakeholder engagement
process in place in order to understand stakeholder
expectations, and the company has committed to active
stakeholder dialogue.
- Materiality: Suominen has identified sustainability
reporting topics, which correspond to stakeholder
interests and major economic, environmental and social
impacts in Suominen’s value chain.
- Responsiveness: Suominen has policies and procedures
in place to respond to stakeholder’s expectations.
- Impact: Suominen has identified impacts related to
the material sustainability topics and has committed
to manage and disclose comprehensive and balanced
information on these impacts.
Corporate sustainability performance data
We have reviewed the basis of the corporate sustainability
information provided in the Report. Based on the
procedures we have performed and the evidence we have
obtained, nothing has come to our attention that causes
us to believe that the Report is not fairly stated and has
not been prepared, in all material respects, in accordance
with the reporting criteria.
GRI Standards in accordance criteria
The Report complies with the GRI Standards: Core option.
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Observations and Recommendations
Based on our limited level assurance engagement, we
present the following observations and recommendations,
which do not aect the conclusions presented above.
- Suominen has integrated sustainability to strategy
and has set Group-wide sustainability targets. In 2021
Suominen has progressed especially in increasing
sales of sustainable products and minimising own
environmental impacts. We recommend that Suominen
develops even more ambitious and longer-term climate
and environmental targets.
- In 2021 Suominen has further developed responsible
business practice and invested in strengthening
ethical corporate culture. The company has been
able to manage impacts of the exceptional COVID-19
pandemic situation. We recommend that Suominen
continues eorts to strengthen safety culture and
personnel wellbeing.
- Suominen has solid sustainability governance and
management practices, and the company reports
complete sustainability information on material
disclosure topics. The company has systematic
procedures in place to collect sustainability data.
We recommend that Suominen further develops
sustainability data management in the line with
increasing reporting obligations.
Helsinki, Finland, 9th February 2022
Mitopro Oy
Mikael Niskala Tomi Pajunen
Independent Independent
Sustainability Practitioner Sustainability Practitioner
54 Suominen Annual Report 2021
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Corporate
Governance
Suominen Corporation (“Suominen” or the “Company”)
complies with the Finnish Corporate Governance
Code 2020 (the “Code”) issued by the Securities Market
Association. The Code is available on the internet at
www.cgfinland.fi.
This Corporate Governance Statement (the
“Statement”) is published separately from the report of
Board of Directors. This Statement has been published
simultaneously with the Financial Statements and Report by
the Board of Directors as a Stock Exchange Release, and it
is available also on Suominen’s website, www.suominen.fi.
The Audit Committee and the Board of Directors of
Suominen Corporation have reviewed the Statement.
Corporate Governance Statement
of Suominen Corporation
for2021
The Statement will not be updated during the financial
year, but up-to-date information on its various topics is
available on Suominen’s website.
1. Suominen’s governing bodies
Responsibility for the Company’s operations is held by the
constitutional bodies required by the applicable laws and
regulations. Suominen’s decision-making bodies are the
General Meeting of Shareholders, the Board of Directors
with its two Committees, and the President & CEO,
supported by the Executive Team.
Auditor
Audit
Committee
Personnel &
Remuneration
Committee
Annual General Meeting
President & CEO
Executive Team
Board of Directors
Shareholders’
Nomination Board
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General Meeting of Shareholders
Suominen’s supreme decision-making body is the General
Meeting of Shareholders, where shareholders exercise
their decision-making power. The Annual General
Meeting is held once per year before the end of April on a
date determined by the Board of Directors. It decides on
the matters stipulated in the Finnish Companies Act and
Suominen’s Articles of Association. Such matters include:
- Adoption of the financial statements
- Use of the profit shown on the balance sheet
- Election of the Chair and members of the Board of
Directors and the decision on their remuneration
- Discharging the members of the Board of Directors and
the President & CEO from liability, and
- Election of the Auditor and the decision on the Auditor’s
compensation.
Suominen publishes a notice of the Annual General
Meeting of Shareholders on the Company’s website no
earlier than two months and no later than three weeks
prior to the meeting, however, at least nine days prior to
the record date of the meeting. In order to participate in
the Annual General Meeting, a shareholder must inform
the Company of the participation at the latest on the date
mentioned in the invitation. The date may not be earlier
than ten days before the meeting.
Annual General Meeting in 2021
The Annual General Meeting was held in Helsinki on
March 25, 2021. In order to prevent the spread of the
COVID-19 pandemic, the meeting was held without
shareholders’ and their proxy representatives’ presence
at the venue of the meeting. The shareholders of the
Company participated in the meeting and exercised
their shareholder rights by voting in advance. A total of
64 shareholders representing 39.1% of the Company’s
shares and votes participated in the advance voting. The
Annual General Meeting documents are available on the
Company’s website www.suominen.fi.
Shareholder’s Nomination Board
Suominen has a permanent Shareholders’ Nomination
Board established by the 2013 Annual General Meeting.
The task of the Nomination Board is to prepare and
present to the Annual General Meeting and, if necessary,
to an Extraordinary General Meeting, a proposal on the
remuneration of the members of the Board of Directors,
a proposal on the number of members of the Board of
Directors and a proposal on the members and the Chair
of the Board of Directors. In addition, the task of the
Nomination Board is to seek potential successors for the
board members.
The Nomination Board consists of four members,
three of which are appointed by the Company’s three
largest shareholders who appoint one member each. The
largest shareholders shall be determined on the basis of
the registered holdings in the Company’s shareholders’
register held by Euroclear Finland Ltd as of the first
working day in September. The Chair of the Company’s
Board of Directors serves as the fourth member. The
Nomination Board is established to exist and serve until
the General Meeting of the Company decides otherwise.
The members are nominated annually, and their term of
oce ends when new members are nominated to replace
them. The members of the Nomination Board shall be
independent of the Company, and a person belonging
to the Company’s operative management cannot be a
member of the Nomination Board.
Nomination Board in 2021
Shareholders’ representatives on the Nomination Board
in 2021 were Lasse Heinonen, representing Ahlstrom
Capital B.V., Mikael Etola representing Oy Etra Invest Ab
and Jukka Perttula representing Nordea Nordic Small Cap
Fund. Jaakko Eskola, Chair of the Board of Directors acted
as the fourth member of the Nomination Board. Lasse
Heinonen acted as the Chair of the Nomination Board.
In 2021, the Nomination Board convened seven times.
The attendance rate at the meetings was 100%.
Board of Directors
The main duty of the Board of Directors of Suominen
is to direct Suominen’s strategy in a way that it, in the
long run, enables the delivery of the financial targets set
for Suominen and maximizes shareholder value while
simultaneously taking into account the expectations of
the key stakeholders.
The Board of Directors is responsible for the
administration and the proper organization of Suominen’s
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operations. The Board is responsible for making decisions
on matters that are likely to have a major impact on the
Company. The Board convenes according to an annual
meeting plan.
The members of the Board of Directors are elected by
the General Meeting of Shareholders. Pursuant to the
Articles of Association of the Company, the Board shall
have at least three and no more than seven members.
The main duties
The duties of the Board are defined in the Finnish laws
and regulations, Suominen’s Articles of Association, the
Finnish Corporate Governance Code and the Board’s
Charter. The main duties are the following:
- to approve the Company’s strategy and oversee its
implementation
- to approve the Company’s long-term targets and
monitor their implementation
- to approve the annual business plan
- to approve major business acquisitions, divestments,
investments or expenditures
- to approve major external funding (both debt and
equity), capitalization of subsidiaries, and guarantees
and mortgages
- to decide on the appointment and dismissal of the
CEO and other members of the Executive Team and to
decide on their terms of employment and remuneration
- to approve the Company’s organizational structure
- to monitor and supervise the Company’s performance
and to ensure the eectiveness of its management
- to decide on the Company’s share-based long term
incentive schemes
- to approve the Company’s financial reports, including
annual accounts, interim reports, report by the Board of
Directors and financial statement releases
- to ensure that the Company has adequate planning,
information and control systems and resources for
monitoring results and managing risks
- to convene General Meetings
- to establish a dividend policy and make a proposal on
distribution of dividend
- to make a proposal concerning the election of the
auditor and the auditing fees, and
- to make other proposals to General Meetings.
Board of Directors in 2021
The 2021 Annual General Meeting elected six members to
Suominen’s Board of Directors. The term of oce of the
members of the Board of Directors ends at the close of
the Annual General Meeting 2022.
Board member Member since Born Nationality Education Main occupation Share ownership
Jaakko Eskola 2021,
Chair since 2021
1958 Finnish M.Sc. (Eng.) Board Professional ,
Andreas Ahlström 2015,
Deputy Chair since 2020
1976 Finnish M.Sc. (Econ. and
Business Adm.)
Investment Director,
Ahlström Capital Oy
,
Björn Borgman 2020 1975 Swedish M.Sc. (Industrial
Engineering)
CEO, HL Display AB ,
Nina Linander 2020 1959 Swedish B.Sc. (Econ.), MBA Board Professional ,
Sari
Pajari-Sederholm
2019 1968 Finnish M.Sc. (Tech.) EVP, Strategy, Metsä
Group
,
Laura Raitio 2015 1962 Finnish Licentiate of
Technology
Board Professional ,
Until March 25, 2021
Jan Johansson 2017,
Chair since 2017
1954 Swedish LL.M. Board Professional
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Independence of the Board members
The Board of Directors has evaluated the independence
of its members. All members are independent of the
Company. All members are also independent of its
significant shareholders, with the exception of Andreas
Ahlström, who acts as Investment Director at Ahlström
Capital Oy. The largest shareholder of Suominen, Ahlstrom
Capital B.V., is a group Company of Ahlström Capital.
Meeting practice
The Board of Directors convenes under the direction of
the Chair or, if the Chair is unable to attend, the Deputy
Chair. Principally, the matters are presented by the
President & CEO.
In 2021, the Board of Directors convened 11 times,
of which five times per capsulam. The attendance rate
at themeetings was 100%. The participation of each
individual member is presented in the table below.
Name Participation
Jaakko Eskola Chair /
Andreas Ahlström Deputy Chair /
Björn Borgman Member /
Nina Linander Member /
Sari Pajari-Sederholm Member /
Laura Raitio Member /
Until March 25, 2021
Jan Johansson Chair /
Board evaluation
In 2021, after most of its meetings, the Board assessed the
preparations of the meeting, the course of the meeting,
and its own operations, in line with the principle of
continuous development.
The Board of Directors conducted an annual evaluation
of its operation and working methods during financial
year 2021. The assessment was conducted internally. The
results of the assessment were discussed confidentially
also with the Nomination Board members to whom the
report was provided.
Diversity principles of the Board of Directors
At Suominen, diversity has been recognized as an
essential success factor in the long term. When
considering the Board’s composition, diversity is assessed
through a number of viewpoints. Diversity in the Board’s
competencies, experience and opinions promotes
openness to new ideas and helps the Board support and
challenge the Company’s management. Furthermore,
diversity promotes open discussion, integrity in decision
making, good corporate governance, and eective
supervision of both the Board and the management, and
it also supports succession planning.
The Nomination Board of Suominen’s shareholders
evaluates the number of members on the Board, its
composition and the competence requirements of the
Board in the light of the present and future needs of the
Company. When assessing the composition of the Board,
the Nomination Board considers, among other things,
whether the Board possesses a broad range of business
knowledge and members representing both genders and
various ages. It is Suominen’s objective to have both men
and women on its Board.
It is fundamental that the Nomination Board’s final
proposal to the Annual General Meeting is based on the
qualifications and competencies of each candidate. In
addition, candidates must also have the possibility to
devote a sucient amount of time to the Board work.
The essentials of the diversity principles are described
in this Statement. They can be reviewed in their entirety at
www.suominen.fi.
Table 1
Males 50%
50
Females 50%
50
Gender
Males 50%
Females 50%
5
41–50 years 33%
33
51–60 years 33%
33
61–70 years 33%
33
Age
41–50 years 33%
51–60 years 33%
61–70 years 33%
6
Less than 1 year 17%
17
1–4 years 50%
50
4–8 years 33%
33
Tenure
Less than 1 year 17%
1–4 years 50%
4–8 years 33%
7
Board Diversity
(December 31, 2021)
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Board committees
The Board of Directors has two permanent committees:
the Audit Committee and the Personnel and Remuneration
Committee. The Board of Directors elects the members
of the committees among its members at its annual
organizing meeting. Both Committees report to the Board
on their activities after each Committee meeting.
Audit Committee
The Audit Committee assists the Board in supervising
the Company’s governance, accounting and financial
reporting, internal control systems and monitoring the
activities of the external audit. The Audit Committee
prepares for the Board matters that fall under its areas of
responsibility, but it does not have autonomous decision-
making powers unless the Board resolves otherwise on
certain matters.
The Chair and members of the Audit Committee
are elected annually by the Board from among its
members. The Audit Committee comprises at least three
members. The members of the Audit Committee must be
independent of the Company, and at least one member
must also be independent of the Company’s significant
shareholders.
Audit Committee in 2021
The Audit Committee consisted of Nina Linander (Chair),
Andreas Ahlström and Laura Raitio.
In 2021, the Audit Committee convened 4 times.
The attendance rate at the meetings was 100%. The
participation of each individual member is presented in
the table below.
Name Participation
Nina Linander Chair /
Andreas Ahlström Member /
Laura Raitio Member /
Personnel and Remuneration Committee
The Personnel and Remuneration Committee assists
the Board by preparing remuneration and appointment
matters concerning the company’s CEO and other
members of the Executive Team. The Committee
prepares for the Board matters that fall under its areas of
responsibility, but it does not have independent decision-
making powers unless the Board resolves otherwise on
individual matters.
The Chair and members of the Committee are elected
annually by the Board from among its members. The
Committee comprises at least three members. The
members of the Committee must be independent of the
Company.
Personnel and Remuneration Committee in 2021
The Personnel and Remuneration Committee consisted of
Jaakko Eskola (Chair as of March 25, 2021), Jan Johansson
(Chair until March 25, 2021), Björn Borgman and Sari
Pajari-Sederholm.
In 2021, the Personnel and Remuneration Committee
convened twice. The attendance rate at the meetings
was 100%. The participation of each individual member is
presented in the table below.
Name Participation
Jaakko Eskola Chair /
Björn Borgman Member /
Sari Pajari-Sederholm Member /
President & CEO
The President & CEO (Managing Director) of Suominen is
appointed by the Board of Directors. The President & CEO
is responsible for day-to-day operations in accordance
with the Companies Act and guidelines and instructions
provided by the Board of Directors. The President & CEO
is in charge of the day-to-day management of Suominen
Group and is responsible for ensuring that the Company’s
accounting practices comply with the law and that its
assets are reliably managed pursuant to the Companies
Act. The President & CEO acts as the Chair of the
Executive Team as the immediate supervisor of the team’s
members.
Petri Helsky, born 1966, serves as the President & CEO
of Suominen. Mr. Helsky holds Master of Science degrees
both in Engineering and Economics.
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Executive Team
The President & CEO is supported by the Executive Team.
In 2021, the Executive Team consisted of:
Executive Team
member
Team member
since Born Nationality Education Position Share ownership
Petri Helsky 2019 1966 Finnish M.Sc. (Tech.),
M.Sc. (Econ.)
President & CEO ,
Toni Tamminen 2019 1978 Finnish D.Sc. (Tech.),
M.Sc. (Econ.)
CFO ,
Lynda Kelly 2014 1964 US B.Sc. SVP, Americas
& Business
Development
,
Markku Koivisto 2017 1971 Finnish M.Sc. (Tech.) SVP, Europe & R&D ,
Klaus Korhonen 2019 1974 Finnish LL.M. SVP, HR & Legal ,
Mimoun Saïm 2011 1964 French ENSI Engineering SVP, Operations ,
Suominen’s operative organization
Suominen’s operative organization consists of two
business areas, Europe and Americas, and seven global
functions supporting the business: Operations, Finance,
Sourcing, R&D, HR & Legal, Business Development and
Communications & IR. The Company only has one
operating segment.
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2. Descriptions of internal control
procedures and the main features
of risk management systems
Internal control
Control environment
Control operations are embedded in the activities of
Suominen’s organization. Controlling is executed in
connection with the steering of business processes,
supported by comprehensive reporting.
Suominen’s control environment is based on
instructions, the business culture and the way of working
adopted by the Company’s managers and employees.
In cascading the principles in the organization, honesty,
transparency and working in teams are integral elements
of establishing high ethical standards throughout
theCompany.
The foundation of the internal control process is based
on the Company’s Code of Conduct, values, policies
and other directives and instructions. The responsibility
structure of the Company is based on authority inherent
in the positions and work descriptions, segregation of
duties and the “four-eyes” and “one-over” decision-
making principles. Eective internal control requires that
duties are properly allocated to employees and potential
conflicts of interests are identified and eliminated. A
satisfactory control environment is ensured through
internal analyses and evaluations of key processes.
Nominated Process Owners are responsible for ensuring
that ecient internal process controls are defined and
implemented across the organization.
The ICT function ensures that the security checks of
ICT systems throughout the Group are functioning and
conducted at a sucient level.
Control activities
Internal control activities are in place to, among other
things, verify that the Company’s financial reports provide
a true and fair view of the Company’s financial position.
It is the duty of the Board of Directors and the President
& CEO to organize the internal control activities. Each
member of the Board of Directors receives a monthly
report on the Company’s result and financial position.
In practice, control activities are conducted in the
meetings of the Board of Directors and the management
teams, where the results of the activities are reviewed.
The Company’s Finance function and the Group’s
controller network support and coordinate the financial
management and control of the activities of the
entireGroup.
Internal control at Suominen has been decentralized
across global functions, who monitor compliance with the
operating guidelines approved by the Board concerning
their areas of responsibility. In addition to the Group-level
guidance, control measures are also taken at the business
area and plant level. Control measures include both
general and more detailed control procedures aimed at
preventing, revealing and correcting errors and deviations.
In day-to-day business operations, several control
activities are exercised to prevent potential errors and
deviations in financial reporting. Moreover, control
activities are in place to help reveal and correct the
identified errors. Suominen categorizes its control
activities into three categories. Documented instructions
help the organization to standardize the monitoring
of tasks. Continuous and regular reporting conveying
feedback on the performance of global functions and
each Group company ensures that instructions and
defined processes are followed. In critical processes,
specific authorizations are needed in the work flow, either
for security or for verification needs.
The need for separate evaluations, as well as their
scope and frequency, is defined by assessing risks and
the eectiveness of ongoing monitoring procedures.
Information security and related control activities play
a key role when the features of ICT systems are being
defined and applied.
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Information and communication
The Company’s Financial Manual, policies approved by
the Board and other directives and instructions relating
to financial reporting are updated and communicated
on a regular basis by the management to all aected
employees and are also available in the Company’s
intranet. In addition, a standard reporting package is
used by the business areas and the subsidiaries. Group
management and business area management conduct
monthly reviews that include an analysis of performance
metrics and indicators assisting management to better
understand the underlying business performance.
Follow-up
Ongoing responsibility for follow-up rests with the
business area management and controller functions.
Regular inspections by quality auditors or customer
audit personnel cover also the internal controls of supply
chain processes.
The Company’s Finance function monitors the
operations and processes of the subsidiaries and the
accuracy of external and internal financial reporting.
Risk management
Risk management is considered an integral part of running
the business of Suominen, and the identification and
assessment of risks is an essential element of internal
control. The aim is to focus on the material risks that
are significant from a business perspective. Risks are
categorized into strategic, operational, financial and
hazard risks.
Operational risks are considered to potentially have
a material value in transactions with external parties.
However, the Company’s policies, instructions, process
check-ups, allocation of tasks and standards set up by
total quality operating systems help to establish a prudent
environment in which exposure to material risks can
bemitigated.
Risks relating to financial reporting are evaluated
and monitored by the Board, aiming to ensure that
the financial reporting of the Company is reliable,
supports decision-making and serves the needs of
external stakeholders. The valuation of assets, liabilities
and contingent liabilities based on various evaluation
assumptions and criteria may constitute a risk.
Future estimates and assumptions on the reporting date
involving a significant risk of causing material changes
in the carrying amounts of assets and liabilities are
continuously evaluated. Complex and evolving factors
having an impact on business circumstances may add
uncertainty to the assessment of the carrying amounts of
assets. To avoid errors in stating the fair values of assets or
liabilities, regular check-ups are made, e.g., by comparing
material flows, values, and quantitative and qualitative
data with the information in accounting. The risk of errors
due to irregularities and discontinuities in information is
reduced by using established and automated system-
based audit trails.
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3. Other information
Internal audit
Suominen has retained an external party to execute
internal audits within the Company. The audit topics
are determined by the Audit Committee based on
recommendations by the management, and any material
findings are reported to the Audit Committee, the
President & CEO, the Executive Team and other relevant
management.
Insider management
Suominen complies with the EU Market Abuse Regulation
(“MAR”), the Finnish Securities Markets Act, the decisions,
regulations, guidelines and standards issued by the Finnish
Ministry of Finance and the Financial Supervisory Authority,
the rules of Nasdaq Helsinki Ltd as well as the Guidelines
for Insiders issued by Helsinki Exchange in force at any
given time. In addition, the Board of Directors of the
Company has approved an Insider Policy to inform the
governing bodies and employees of Suominen and its
aliated companies of the regulations in force pertaining
to insider trading.
Directors required to submit notifications
Based on the MAR, Suominen no longer maintains a
public insider register. Instead, Suominen maintains
a list of the Company’s directors and persons closely
associated with them. Persons on that list have an
obligation to notify Suominen and the Finnish Financial
Supervisory Authority of all transactions made with
Suominen’s financial instruments by them or on behalf
of them. Suominen will disclose the notifications it has
received as stock exchange releases as soon as possible.
At Suominen Corporation, the members of the Board
of Directors, the President & CEO and other members of
the Executive Team have been defined as subject to the
requirement to report their transactions.
Disclosed stock exchange releases on the transaction
notifications of directors and persons closely associated
with them can be viewed at www.suominen.fi
(> Investors > Share and shareholdings
> Management transactions).
Closed period
Suominen’s defined directors are subject to comply with
the so-called closed period. The closed period applies
prior to the disclosure of financial reports and lasts
30 calendar days, including the date of disclosure of a
financial report. During the closed period, Suominen’s
defined directors may not trade with the share or another
financial instrument of the Company. Core persons
preparing financial reports, among others, are also subject
to a similar 30-day closed period. The times of the closed
periods are disclosed through a stock exchange release
and in the event calendar available on the Company’s
website.
During a closed period, trading with Suominen’s
financial instruments by defined directors and core
persons is possible only in certain very exceptional
situations. An example of such an exceptional situation
is a transaction conducted by a director or core person
to participate in a share-saving scheme for Suominen
employees which is a prerequisite of a director’s or a core
person’s position. Any exceptions to the 30-day-long
closed period requires the Company’s approval of the
transaction in question. The exception cannot be applied
if a director or a core person has inside information.
Trading by directors and core persons
Directors and core persons must, in addition to abiding
by the closed period and other trade restrictions, time
their trading so that it does not weaken the general trust
in the securities market. Suominen recommends that
directors and core persons make long-term investments
in the Company’s shares and other financial instruments.
Further, it is also recommendable to time the trading
to a point in time when the market has as complete
knowledge of the factors aecting the value of the share
or the financial instrument as possible.
Monitoring and control
The Insider Ocer of Suominen is the Company’s
Chief Financial Ocer. The Insider Ocer is generally
responsible for the administration of the Company’s
insider matters.
Without limiting the obligations arising from MAR,
theSecurities Markets Act or other applicable regulations,
the Company’s insider administration assumes
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responsibility for internal communications concerning
insider issues, training in insider issues within the
Company, preparing and maintaining lists of directors and
their closely associated persons, receiving notifications
concerning the transactions of directors and their closely
associated persons, going through the notifications and
forwarding them to the Financial Supervisory Authority
(if the director/closely associated person has authorized
the Company to do so) and publishing the related stock
exchange release, preparing and maintaining project-
specific insider lists, preparing lists of personnel who are
defined as core persons, monitoring insider issues, and
administering the information to be published on the
internet, if needed.
Auditing
The Annual General Meeting held on March 25, 2021
re-elected Ernst & Young Oy, Authorized Public
Accountant firm, as auditor of the Company. Ernst &
Young Oy appointed Toni Halonen, Authorized Public
Accountant, as the principally responsible auditor of
theCompany. The auditors and the Audit Committee of
Suominen agree annually on an audit plan.
Audit fees in 2021
Auditor's fees and services
EUR
thousand
Auditing 
Non-audit related fees (tax and other consulting fees) 
TOTAL 
Principles for related party
transactions
The Company complies with legislation regarding
related party transactions and ensures, in accordance
with the legislation and the Finnish Corporate
Governance Code, that the requirements set for
the monitoring, assessment, decision-making and
reporting of related party transactions are complied
with. The Board of Directors has approved Suominen’s
Related Party Policy defining the principles for
monitoring and assessing related party transactions.
Suominen has defined the parties that are related
to the Company and Suominen’s Finance function
maintains a list of such persons and entities. The
Company can carry out transactions with its related
parties provided that such transactions are made
within the Company’s ordinary course of business
and on customary, arm’s-length terms. The Board
of Directors decides on related party transactions
that are made either outside the Company’s ordinary
course of business or on other than customary, arm’s-
lengthterms.
Related party transactions are monitored regularly
by the Company’s Finance function as part of
the Company’s normal reporting and monitoring
procedures. Members of the Board of Directors
and the Executive Team are also obligated to report
any planned related party transactions or ones they
have become aware of to the CFO without undue
delay once the transaction has been brought to
theirattention.
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Remuneration Report
of Suominen Corporation
REMUNERATION POLICY FOR GOVERNING BODIES OF SUOMINEN CORPORATION AT A GLANCE
According to the Remuneration Policy (the “Remuneration Policy” or “Policy”) for Governing Bodies of Suominen Corporation (“Suominen”
or the “Company”) approved by the Annual General Meeting (the “AGM”) on March 19, 2020, Suominen’s aim is to oer a framework for
remuneration that incentivizes to pursue towards the Company’s long-term financial performance and shareholder value creation.
The Policy has the following guiding principles:
1. Total remuneration opportunity shall be competitive enough in relation to the market
2. Performance-based incentives form a significant part of the President & CEO’s total target remuneration in order to emphasize a strong
pay-for-performance alignment
3. Majority of the performance-based incentives emphasize long-term, rather than short-term performance and have a straight link to
shareholder value
4. Share ownership requirement is set for the President & CEO in order to ensure balanced risk taking
The General Meeting determines the remuneration of the Board of Directors (the “Board”). The Shareholders’ Nomination Board prepares the
proposal for the General Meeting.
The President & CEO’s (the “CEO”) remuneration consists of a fixed base salary (including fringe benefits) and variable incentives. Variable
incentives can be short-term, such as cash bonuses, or long-term, such as share-based incentive plans. Share-based incentive plans can be
used for rewarding for performance and/or for retention purposes. The aim of the Board is that variable remuneration shall form a significant
portion of the annual remuneration opportunity at the target level granted to the CEO. On average, variable incentives shall at target level
be equal to the CEO’s fixed annual salary. If performance exceeds the Board’s expectations, the variable incentives shall exceed the fixed
annualsalary.
The Board may deviate from the Policy in certain exceptional situations. To read the full Policy, please visit our website:
www.suominen.fi/en/investors/corporate-governance/remuneration.
2021 CEO REMUNERATION AT A GLANCE
The total remuneration for the CEO increased from 2020 to 2021 mainly due to a higher performance based annual bonus payment and a
reward from the Long-Term Incentive (the “LTI”) Plan Performance Period 2018–2020. The year 2020 was record high for Suominen in terms
of financial results which is visible in the total remuneration of the CEO in 2021 through the incentive plan payouts earned in 2020 and paid in
2021. The CEO also received the second and last installment under the Matching Restricted Share Plan (the “MRSP”) in September 2021.
The financial results in 2021 were amongst the best at Suominen; for example, our comparable EBITDA was the third best annual result in
Suominen’s history. However, we were unable to fully meet our ambitious target levels in the Global Short-Term Incentive (the “STI”) Plan 2021
which were set based on the record high results of 2020. For the CEO, this resulted in pay-out between threshold and target level (to be paid
in 2022) under the Global STI 2021. The CEO also earned a share-based reward under the Long-Term Incentive (the “LTI”) Plan Performance
Period 2019–2021 in which the pay-out is between the target and maximum level (to be paid in 2022).
The Board introduced a supplementary bonus opportunity for all employees eligible in the Global STI Plan in November 2021. The
supplementary bonus was tied to the full year 2021 EBITDA target. It resulted in a pay-out just above the threshold and is to be paid in 2022 to
all eligible participants, including the CEO.
For further information on the Company, Board and executive remuneration, please visit our website:
www.suominen.fi/en/investors/corporate-governance/remuneration.
1. Introduction
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Dear Shareholders,
As the Chair of Suominen’s Board of Directors and the
Personnel and Remuneration Committee (the “PRC”), I am
pleased to present Suominen’s Remuneration Report for
the financial year 2021. The report has been approved by
the Board on February 2, 2022.
I joined Suominen’s Board and started as the Chair of
the Board and the PRC in March 2021 and am pleased
to see the steady progress in 2021. Suominen’s financial
performance was good in 2021 when comparing to the
historical results of Suominen. We had set ambitious
financial targets for 2021 based on record high result in
2020. Unfortunately, we were not able to meet these
ambitious targets. In this second year of the COVID-19
pandemic, we continued to experience high customer
demand in the first half of the year, but especially the
third quarter was marked by a temporary drop in demand
followed by partial recovery in the fourth quarter. The
financial results 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.
To communicate the urgency and importance of
seizing all opportunities during the remaining of 2021
and to maximize the full year result, the Board decided to
introduce a one-o, supplementary bonus opportunity
to all employees eligible in the Global STI Plan, including
the CEO, in November 2021. The plan was tied to full year
2021 EBITDA target and proved to successfully incentivize
our employees.
Based on our Remuneration Policy, we aim to oer
to the CEO a remuneration structure that incentivizes
towards the achievement of Suominen’s strategic targets
and long-term shareholder value creation. We utilize both
short-term and long-term performance-based incentives
to which the Board annually selects most optimal
performance metrics to steer towards the implementation
of Suominen’s strategy and achievement of sustainable
financial results in a competitive market.
Rewards under all on-going LTI Performance
Periods are awarded based on three-year relative Total
Shareholder Return (“TSR”). This is the most important
performance indicator that the Board closely follows
to assess whether our strategy has been successfully
implemented in the long term. The PRC believes it is
appropriate to reward the Company’s key employees for
attaining long-term targets linked to the relative TSR as
it is a holistic way of measuring our overall success as a
company in terms of shareholder value creation. On the
other hand, financial and operative metrics and other
strategic targets are being set and followed in the annual
Global STI Plan, which aligns short-term strategic actions
with long-term shareholder value creation.
During 2021, we have continued to comply with and
execute the Remuneration Policy as approved by the
2020AGM. There was no need to temporarily deviate
from thePolicy.
This is the second Remuneration Report for Suominen
as required by the Finnish Corporate Governance Code
2020. We will continue to welcome shareholder feedback
regarding our remuneration and reporting.
1.1 Letter from the Chair of the Board and the Personnel and
Remuneration Committee
Jaakko Eskola
Chair of the Board and
the Personnel and
Remuneration Committee
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This section presents a comparison between the
remuneration of the CEO and the Board, the average
employee remuneration and the Company performance
for the financial years 2017 to 2021.
During the last five years, remuneration for the CEO
and our employees (on average) has been quite well
in alignment with the Company’s performance. When
interpreting the figures in the table below, it is good to
note two things:
1. For the CEO, the figures represent remuneration
paid during that financial year, and a portion of such
remuneration may have been earned during the
previous year or years.
2. Employee pay figures, however, are accrual-based
figures from financial statements meaning that some
of wages and salaries (for example bonuses) have been
earned, but not paid during that year.
Our current CEO started in his position in January 2019
after which the Company’s new strategy was defined and
launched in early 2020. Financially the year 2020 was a
record year for Suominen as we achieved the highest ever
net sales and operating profit. This record high 2020 is
visible in the CEO’s remuneration paid out during 2021.
The total pay for the CEO increased from 2020 to 2021
mainly due to a higher performance based annual bonus
payment (Global STI 2020) and a reward from the LTI
Performance Period 2018–2020. This is well aligned with
our pay-for-performance principle.
Pay-for-performance philosophy is widely followed
at Suominen and many of the performance metrics
incentivizing the CEO are similarly used to incentivize
the employees. Accordingly, the average employee
pay fluctuates in accordance with the Company’s
performance, but to a lesser degree than executive pay, as
a smaller portion of total remuneration consists of variable
remuneration.
The Board members do not participate in any incentive
schemes and correspondingly the Board remuneration
has remained rather stable with occasional increases to
annual and meeting fees. Variation mainly occurs due
to dierent number of Board and Committee meetings
during the year.
1.2 Pay-for-performance during the preceding five years
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Five year development of remuneration and company performance
    
Current CEO (Petri Helsky) total remuneration¹
(EUR, ‘000) . . .
Index² % % %
Previous CEO (Nina Kopola) total remuneration³
(EUR, ‘000) . .
Interim CEO (Tapio Engström) total remuneration⁴
(EUR, ‘000) .
Index² % %
Employee pay (average)⁵
(EUR, ‘000) . . . . .
Index² % % % % %
Total Board remuneration⁶
(EUR, ‘000) . . . . .
Index² % % % % %
Jaakko Eskola .
Andreas Ahlström . . . . .
Laura Raitio . . . . .
Sari Pajari-Sederholm . . .
Björn Borgman . .
Nina Linander . .
Jan Johansson . . . .
Risto Anttonen . . . .
Hannu Kasurinen . . . .
Jaana Tuominen . . .
Jorma Eloranta .
3-year Total Shareholder Return (TSR)⁷
(%) .% - .% -.% .% .%
Share price development⁸
(EUR) . . . . .
Index² % % % % %
EBITDA
(EUR, ‘000 000) . . . . .
Index² % % % % %
¹ Current CEO started in January 2019. No annual bonuses or LTI based payments were paid to the CEO in 2019. CEO total remuneration includes all payments made to the CEO
during the financial year
² First year in the time-series set at 100%
³ Previous CEO pay in 2018 includes base and benefits until August 3, 2018, severance payments of 482,819 EUR and the value of 14,182 shares received as reward from the LTI Plan.
Previous CEO total remuneration includes all payments made to the CEO during the financial year
⁴ Interim CEO total remuneration in 2018 is from the time period he acted as interim CEO: August 4, 2018–December 31, 2018
⁵ Employee pay is the wages and salaries of our personnel from the Financial Statements divided by the average number of employees
⁶ Total Board remuneration includes all payments made to the Board during the financial year
⁷ Total Shareholder Return (share price increase plus dividend yield) is calculated based on 3-month closing average prior to the end of the financial year. For example, the 3-year
TSR for 2020 is calculated as (Q4 2020 average share price - Q4 2017 average share price) / Q4 2017 average share price + (paid dividends in 2018, 2019 and 2020) / Q4 2017
average share price
⁸ Share price development is calculated based on 3-month closing average prior to the end of the financial year
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As stated in the Remuneration Policy approved at
the 2020 AGM, the General Meeting determines the
remuneration paid to the members of the Board in
advance, for one year at a time. Shareholders’ Nomination
Board prepares independently a proposal on the
remuneration of the Board to be presented for the
General Meeting.
The basis for determination of the Board remuneration
is to ensure that the remuneration is competitive in
relation to the market and that the remuneration reflects
the competencies and eorts required from the members
of the Board to fulfill their duties.
Suominen’s AGM held on March 25, 2021 resolved that the
remuneration payable to the members of the Board is as
follows:
- The Chair will be paid an annual fee of EUR 66,000
- 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
- EUR 500 for each meeting held as telephone
conference
2. Remuneration of the Board of Directors
for the preceding financial year
At the AGM on March 25, 2021, the shareholders resolved
to favor the Remuneration Report 2020 pursuant to the
Board’s proposal. The PRC and the Board have considered
the feedback provided by the shareholders and have
modified this Remuneration Report 2021 to be slightly
shorter and to contain clearer information on CEO targets
and weights in dierent incentive plans.
During 2021, Suominen has not exercised any rights to
reclaim (clawback) or cancel (malus) any paid or unpaid
incentives. Also, there was no need to deviate from the
Policy during 2021.
1.3 Information on the previous vote for the Remuneration Report and any
deviations or clawbacks made
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Remuneration of the Board of Directors in 2021
Annual
remuneration
paid in cash
(EUR)
Value of
the annual
remuneration
paid in shares
(EUR)
Annual
remuneration
paid in shares
(nr of shares)
Meeting
fees (EUR)
Audit
Committee
chair fee
(EUR) Total (EUR)
Jaakko Eskola Chair ,. ,. , , ,
Andreas Ahlström Deputy Chair ,. ,. , , ,
Laura Raitio Member ,. ,. , , ,
Sari Pajari-Sederholm Member ,. ,. , , ,
Björn Borgman Member ,. ,. , , ,
Nina Linander Member ,. ,. , , , ,
Remuneration of the members of the Board of Directors, including the value of the remuneration paid in Suominen shares, totaled EUR 258,447 in 2021.
Additionally, compensation for expenses has been paid in accordance with the Company’s travel policy.
60% of the annual fee was paid in cash and 40%
in Suominen’s shares. The number of shares to be
transferred 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 transferred out of the own
shares held by the Company by the decision of the Board
on May 31, 2021.
Members of the Board are not employees of Suominen
and do not participate in any Suominen incentive scheme
or pension arrangement. All payments to the members
of the Board during the financial year 2021 have been in
compliance with the Remuneration Policy. In 2021, the
following fees were paid to the members of the Board:
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In 2021, the CEO’s remuneration consisted of fixed base
salary (including fringe benefits), supplementary pension
and variable incentives. Payments from variable incentives
were made under the Global STI Plan 2020, Matching
Restricted Share Plan and LTI Performance Period
2018–2020. By the decision of the Board of Directors on
February 3, 2021, the President & CEO received a 2.5%
increase to his base salary eective from February 1, 2021.
In 2021, the CEO was paid a total remuneration of EUR
957,885. Total remuneration consisted of salaries and
benefits EUR 457,093, supplementary pension payments
EUR 80,704, STI (cash bonus) EUR 244,800, value of
LTI reward from the Matching Restricted Share Plan
EUR47,556 (4,676 Suominen shares + cash proportion to
cover taxes) and LTI reward from the Performance Period
2018–2020 EUR 127,732 (22,581 Suominen shares + cash
proportion to cover taxes).
The payment under the Global STI Plan was based
on maximum overall achievement of the KPIs set for
2020. The payment under the LTI Performance Period
2018–2020 was based on overall achievement between
threshold and target of the KPIs (EBIT% with 60%
weight and relative TSR with 40% weight) set for the
PerformancePeriod.
Fixed pay formed 52% and variable pay 48% of the
total remuneration paid to the CEO in 2021. The PRC
considers the one-o Matching Restricted Share Plan
award made to the CEO to be variable pay as the reward
value is determined by the share price at a future date.
Non-statutory pensions are considered neither fixed nor
variable pay.
STI 2020 KPIs and achievement
for the President & CEO¹
KPI Weight Achievement
Group EBIT 50% Reached maximum
Group VA (Value Add) 20% Reached maximum
Personal targets 30% Reached maximum
Total 100% Reached maximum
¹ Global STI 2020 KPIs and achievement, paid during 2021
3. Remuneration of the President & CEO
for the preceding financial year
Base + benefits XX%
48
Non-statutory
pension XX%
8
STI XX%
26
LTI (PSP) XX%
13
LTI (MRSP) X%
5
Total CEO pay in 2021 in proportions
Base + benefits 48%
Non-statutory pension 8%
STI 26%
LTI (PSP) 13%
LTI (MRSP) 5%
8
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In 2021, the CEO earned (to be paid in 2022) the following
variable incentives:
The Global STI 2021 was based on Group EBITDA
(50% weight), Group Contribution Margin (20% weight)
and specific sustainability related personal targets (30%
weight). The outcome for these targets in total was
between threshold and target equaling to EUR 116,704.
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Base salary +
benefits
Paid in 2021
(including
holiday pay):
Base salary:
438,858 EUR
Benefits:
18,235 EUR
The purpose is to provide fixed remuneration
that is competitive with the external market and
reflects the scale and complexity of the Company’s
business. Base salary includes taxable fringe
benefits, such as company car, lunch and telephone.
Base salary is determined based on variety of
factors, such as market level and the individual’s
skills and experience. Base salary is typically
reviewedannually.
Complies with the Policy: The CEO has benefits
such as company car, health insurance, lunch and
telephone. By the decision of the Board of Directors
on February 3, 2021, the President & CEO received
a 2.5% increase to his base salary eective from
February 1, 2021.
Supplementary
pension
arrangement
Paid in 2021:
80,704 EUR
The purpose is to provide a competitive level of
retirement income. The supplementary pension
plan is a defined-contribution pension scheme.
The pension allowance is determined based on the
CEO’s annual base salary, benefits and cash bonus.
Complies with the Policy: The CEO participates
in a non-statutory defined contribution pension
plan. The Company’s contribution was 11.5 % of
the estimated annual base salary, benefits and cash
bonus in 2021. Pension starts from the age of 63.
Cash bonus
(Short-term
remuneration)
Earned from
financial year
2020, paid in 2021:
244,800 EUR
The purpose is to steer towards and reward for the
achievement of short-term financial and operational
performance and to support the delivery of the
business strategy. Performance is measured over
one year and the cash bonus is paid after the year
end. The cash bonus is paid in cash based on
achieved one-year performance.
Complies with the Policy: Maximum STI% in
2020 and 2021 was 60% of the annual base
salary (excluding holiday pay). In 2020, the total
achievement reached maximum and in 2021 was
between threshold and target.
In November 2021, the Board of Directors decided
to introduce a supplementary bonus opportunity
for all employees eligible in the Global STI 2021
including the CEO. This resulted in a pay-out just
above the threshold.
Earned from
financial year 2021
(Global STI 2021),
to be paid in 2022:
116,704 EUR
Earned from
financial year 2021
(Supplementary
bonus), to be paid
in 2022:
12,796 EUR
In addition, the CEO earned a supplementary bonus of
EUR 12,796 based on reaching the threshold on set 2021
annual Group EBITDA target.
The LTI Performance Period 2019–2021 was based on
relative TSR (100% weight) and the outcome was between
the target and maximum. This resulted in a gross reward
of 128,563 Suominen shares to the CEO.
The CEO remuneration in 2021 is further described in the table below.
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Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Share-Based
Incentive Plans
(Long-Term
Remuneration)
Matching
Restricted Share
Plan (“MRSP”) paid
in 2021:
10,000 gross
shares with a value
of 47,556 €. Net
shares delivered:
4,676
The purpose is to reward for the delivery of long-
term shareholder value, to align the President &
CEO’s interests with those of the shareholders and
to increase the value of the Company by oering
a share ownership-based reward structure. The
President & CEO may have share-based incentive
plans, which reward for the Company’s performance
or which are used for retention purposes.
Currently Suominen’s performance-based long-term
incentive mechanism is a Performance Share Plan
(the “PSP”), which oers the President & CEO the
opportunity of earning predetermined number of
Suominen shares as a reward. Payment of the reward
is dependent on the achievement of performance
targets set by the Board of Directors and continued
employment. Matching Restricted Share Plan (the
“MRSP”) is used for retention purposes and to
promote immediate share ownership.
The Board of Directors resolves the maximum
number of shares that can be earned from the
Performance Share Plan. Long-term incentive
awards are denominated in number of Suominen
shares but paid in shares and cash intending to cover
the taxes that incur from the receipt of shares.
Complies with the Policy: The CEO was eligible in
the PSP Performance Period 2018–2020 in which
the total achievement of the two KPIs was between
threshold and target. Therefore, the CEO was
rewarded with 22,581 gross shares in spring 2021.
The CEO was also eligible in the PSP Performance
Period 2019–2021 in which the total achievement
of the two KPIs was between target and maximum.
Therefore, the CEO will receive a reward of 128,563
gross shares in spring 2022.
The Board has resolved the maximum number of
shares that can be earned from the PSP. Additionally,
the performance based LTI plans have a share price
cap, which cuts the reward if the limits set by the
Board for the share price are reached. These limits
were not reached in Performance Periods 2018–
2020 or 2019–2021.
In the MRSP, the CEO has invested in Suominen
shares and in return for the investment, he
was eligible to receive free Suominen shares in
relation to his own investment after a vesting
period. Prerequisite for the reward payment was
continuation of service. The matching shares have
been delivered in two equal installments in 2020 and
2021, 10,000 gross shares in each. The second and
last installment of 4,676 net shares were delivered to
the CEO during 2021. Payment was made partially in
shares and cash.
The CEO is currently eligible for PSP Performance
Periods 2020–2022, 2021–2023 and 2022–2024
in which his total potential reward from all
Performance Periods combined corresponds
approximately to the value of 452,500 shares
(including also the proportion to be paid in cash).
The KPI in all of the on-going Performance Periods
is relative Total Shareholder Return (TSR).
Earned from LTI
Performance
Period 2018–2020,
paid in 2021:
22,581 gross
shares with a value
of 127,732 €. Net
shares delivered:
12,002
Earned from LTI
Performance
Period 2019–2021,
to be paid in 2022:
128,563
grossshares
Share
Ownership
Prerequisite
The CEO must hold 50% of the net number of shares
given based on long-term performance-based plan,
until his or her shareholding in total corresponds
to the value of his/her annual gross salary. Such
number of shares must be held as long as his or her
service in the Company continues.
Complies with the Policy: The CEO has not sold any
shares received from the PSP Performance Period
2018–2020.
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More detailed, up-to-date information on the principal working
experience and positions of trust of the members of the Board
is available at www.suominen.fi. Information on the Board’s
remuneration is included in Suominen’s Remuneration Report.
*Shareholding refers to shares and share-based rights of each director and
thecorporations over which he/she exercises control in on December 31, 2021.
Board of Directors
DECEMBER 31, 2021
JAAKKO ESKOLA
b. 1958
M.Sc. (Technology)
Member of the Board since 2021
Chair of the Board since 2021
Independent member
Shareholding*:
14,583 Suominen shares
BJÖRN BORGMAN
b. 1975
M.Sc. (Industrial Engineering)
CEO, HL Display AB
Member of the Board since 2020
Independent member
Shareholding*:
15,043 Suominen shares
ANDREAS AHLSTRÖM
b. 1976
M.Sc. (Economics and Business
Administration)
Investment Director,
Ahlström Capital Oy
Member of the Board since 2015
Deputy Chair of the Board since 2020
Non-independent member
Shareholding*:
21,333 Suominen shares
LAURA RAITIO
b. 1962
Licentiate of Technology
(Forest Products Technology)
Member of the Board since 2015
Independent member
Shareholding*:
21,333 Suominen shares
NINA LINANDER
b. 1959
B.Sc. (Economics) and MBA
Member of the Board since 2020
Independent member
Shareholding*:
20,516 Suominen shares
SARI PAJARI
SEDERHOLM
b. 1968
M.Sc. (Technology)
EVP, Strategy, Metsä Group
Member of the Board since 2019
Independent member
Shareholding*:
10,554 Suominen shares
75Suominen Annual Report 2021
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Executive Team
DECEMBER 31, 2021
PETRI HELSKY
President & CEO
b. 1966
M.Sc. (Economics)
M.Sc. (Technology)
Joined Suominen in 2019
Shareholding*:
39,354 Suominen shares
LYNDA A. KELLY
SVP, Americas & Business
Development
b. 1964
B.Sc. (Business Administration/
Marketing)
Joined Suominen in 2014
Shareholding*:
24,295 Suominen shares
KLAUS KORHONEN
SVP, HR & Legal
b. 1974
LL.M.
Joined Suominen in 2019
Shareholding*:
19,352 Suominen shares
MIMOUN SAÏM
SVP, Operations
b. 1964
ENSI Engineering
Joined Suominen in 2011
Shareholding*:
34,447 Suominen shares
TONI TAMMINEN
CFO
b. 1978
D.Sc. (Technology)
M.Sc. (Economics)
Joined Suominen in 2019
Shareholding*:
3,500 Suominen shares
MARKKU KOIVISTO
SVP, Europe & R&D
b. 1971
M.Sc. (Technology)
Joined Suominen in 2017
Shareholding*:
18,641 Suominen shares
More detailed, up-to-date information on the principal working
experience, positions of trust and remuneration of the members
of Suominen’s Executive Team is available at www.suominen.fi.
*Shareholding refers to the shares and share-based rights of each executive and
the corporations over which he/she exercises control in on December 31, 2021.
76 Suominen Annual Report 2021
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Financial
information
Financial information
JANUARY 1DECEMBER 31, 2021
Revenue from contracts with customers…142
Entity-wide disclosures…143
Other operating income and expenses…144
Leases…144
Fees paid to auditors…147
Employee benefits…147
Depreciation and amortization…148
Financial income and expenses…149
Income taxes…150
Share-based payments…154
Earnings per share…157
Adjustments to statement of cash flows…157
Related parties…158
Contingent liabilities…160
Events after the reporting period…161
Key ratios per share…163
Calculation of key ratios per share…164
PARENT COMPANY FINANCIAL
STATEMENTS (FAS)…167
Income statement…167
Balance sheet…168
Cash flow statement…170
Notes…171
Proposal by the Board of Directors for
distribution of funds…180
AUDITOR’S REPORT…181
INDEPENDENT AUDITOR’S REPORT ON ESEF
CONSOLIDATED FINANCIAL STATEMENTS…185
KEY RATIOS…187
Calculation of key ratios…188
REPORT BY THE BOARD OF DIRECTORS…79
CONSOLIDATED FINANCIAL STATEMENTS (IFRS)…98
Consolidated statement of financial position…98
Consolidated statement of profit or loss…99
Consolidated statement of other comprehensive
income…99
Consolidated statement of changes in equity…100
Consolidated statement of cash flows…101
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS…102
Significant accounting policies – consolidated financial
statements…102
Accounting estimates and judgements…105
Financial risk management…106
Management of capital…112
Goodwill…113
Intangible assets…115
Property, plant and equipment…117
Right-of-use assets…119
Group companies…120
Equity instruments…120
Inventories…121
Receivables…122
Financial assets…125
Other comprehensive income…127
Information on Suominen share…128
Interest-bearing liabilities…132
Classification of financial liabilities…135
Defined benefit plans…136
Provisions…138
Trade payables and other liabilities…139
Derivative instruments…140
Fair value hierachy…141
78 Suominen Annual Report 2021
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Highlights of Suominen’s financial year 2021
- 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
Report by the Board
of Directors 2021
Key figures   
Net sales, EUR million . . .
Comparable EBITDA, EUR million . . .
Operating profit, EUR million . . .
Profit for the period, EUR million . . .
Earnings per share, basic, EUR . . .
Earnings per share, diluted, EUR . . .
Cash flow from operations per share, EUR . . .
Return on invested capital, rolling 12 months, % . . .
Gearing, % . . .
Dividend and return of capital per share, EUR .* . .
* 2021 the proposal of the Board of Directors to Annual General Meeting
The figures shown in brackets refer to the performance in 2020, unless otherwise stated.
Net sales
In 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
EBITDA (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).
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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).
Net sales, EBITDA and operating profit
EUR thousand   
Net sales , , ,
Comparable EBITDA , , ,
EBITDA , , ,
Operating profit , , ,
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 eect 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 eect 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 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).
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 oering was allocated to 19 investors. The
bond is listed on the ocial 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).
Capital expenditure and depreciation and
amortization
EUR thousand   
Gross capital expenditure , , ,
% of net sales . . .
Depreciation and amortization -, -, -,
Key ratios
  
Return on equity (ROE), % . . .
Return on invested capital (ROI), % . . .
Equity ratio, % . . .
Interest-bearing net debt, EUR
million* . . .
Capital employed, EUR million . . .
Gearing, % . . .
* At nominal value
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Key ratio per shares
  
Earnings per share, EUR, basic . . .
Earnings per share, EUR, diluted . . .
Cash flow from operations per
share, EUR . . .
Equity per share, EUR . . .
Price per earnings per share (P/E)
ratio . . .
Dividend and return of capital per
share, total, EUR (* . . .
Dividend payout ratio, % . . ,.
Dividend yield, % . . .
* 2021 the proposal of the Board of Directors to Annual General Meeting
Key ratios per share are share issue adjusted. Definitions
for key ratios per share are presented in the consolidated
financial statements. Key ratios are alternative
performance measures and the definitions of them are
presented in the annual report.
Quarterly development 2021
EUR thousand Q  Q  Q  Q  
Net sales , , , , ,
Comparable EBITDA , , , , ,
% of net sales . . . . .
Operating profit , , - , ,
% of net sales . . -. . .
Net financial expenses , -, - -, -
Profit before income taxes , , -, , ,
% of net sales . . -. . .
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 eect on our and our customers’ operations and
hence the short-term demand in the early part of 2022. In
the long run the market’s and Suominen’s expectation is
that the 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
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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.
Research and development
At Suominen, research and development activities
are organized into R&D function. In the end of 2021,
R&D function had 15 (15) employees. Research and
development expenses amounted to EUR 2.7 million (2.8),
corresponding to 0.6% (0.6%) of net sales.
Suominen’s vision is to be the frontrunner for
nonwovens innovation and sustainability. In addition, one
of the five focus areas of the strategy is to dierentiate
with innovation and commercial excellence. Legislation
and consumer behavior drive for more sustainable
products and we continuously develop new products
made of renewable, recycled, compostable or plastic-free
materials to meet the market needs.
Suominen Corporation, the parent company of the
Group, owns all business-related patents and related
technologies, know-how, processes, recipes and all other
solutions developed by Suominen Corporation. The
company is targeting to have extensive industrial rights to
the nonwoven-based solutions and technologies as well
as test and pilot equipment needed. This way it can oer
best possible support to the Group companies to satisfy
the current and future customer needs.
Employees
During 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.
Personnel related key ratios
  
Average number of personnel, FTE   
Wages and salaries,
EUR thousand -, -, -,
Suominen’s statement of non-financial
information
Business model
Suominen manufactures nonwovens as roll goods.
Suominen sources its raw materials from fiber producers
in global markets and sell products to converters and
brand owners who then convert and package nonwoven
fabrics into both consumer goods and professional
end products. Suominen’s main market areas are North
America and Europe. Suominen also operates in the South
American markets. Suominen’s net sales were EUR 443.2
million and the company employed 709 people (FTE)
onaverage.
Suominen’s vision is to be the frontrunner for
nonwovens innovation and sustainability. Suominen aims
to grow by creating innovative and more sustainable
nonwovens for our customers and improve its
profitability through more ecient operations and a high
performance culture. Suominen’s main focus is on wipes.
More information about Suominen’s value creation can be
found in the Annual Report p. 9.
Materiality assessment
At Suominen, material sustainability topics are defined
according to their significance to Suominen’s business
and stakeholders’ expectations. The original materiality
assessment was conducted in 2019. The process included
a global stakeholder survey, stakeholder interviews and
an internal workshop. The respondents in the survey
represented a wide range of stakeholders including
customers, employees, shareholders, investors, suppliers
and industry associations. Materiality assessment
served as a basis when formulating Suominen’s
sustainabilityagenda.
In 2021, Suominen conducted the stakeholder survey
again to ensure validity of the most important material
sustainability topics defined in 2019. The stakeholder
survey was conducted in a web-based platform, and it was
open to all our stakeholders in the second half of 2021. The
results of the survey confirmed that the focus areas and key
objectives on our sustainability agenda 2020–2025 remain
valid and correspond with our stakeholders’ expectations.
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Sustainability at Suominen
Sustainability is an integral part of Suominen’s strategy.
The company is committed to systematic development
of responsible business in its strategy and operations.
Suominen’s sustainability agenda 2020–2025 comprises
four themes: people and safety, sustainable nonwovens,
low impact manufacturing and corporate citizenship.
For each theme concrete targets and KPIs are set
and those have been incorporated into Suominen’s
strategic goals. Our aim is to be the most sustainable
nonwovens company in the market. We strive to decrease
environmental impacts of our operations, continuously
develop new sustainable products, and further strengthen
our safety work and employee engagement as well as
responsible sourcing of raw materials.
Managing sustainability at Suominen
Suominen’s sustainability agenda was approved by the
Board of Directors. Sustainability agenda, related goals
and supporting policies are owned and monitored by the
Executive Team. All Suominen’s operations are responsible
for implementing the company level sustainability
initiatives to meet the targets.
Risk management at Suominen
Suominen’s risk management model covers strategic,
operational, financial and hazard risks. Our risk
management process is based on systematic and periodic
risk assessments where key risks are identified and risk
management actions captured. The process is managed
by Suominen’s Risk Management Ocer. Each risk is
assigned a risk owner who is responsible for the related
risk mitigation actions. Risk assessment is integrated
in the strategy process and risks are assessed annually
against Suominen’s strategic objectives. Suominen’s risks
and risk management practices, including non-financial
risks, are described in more detail in the Business risk and
uncertainties section.
Environmental responsibility
Operating principles
For Suominen the material aspects of environmental
responsibility include our targets to minimize the
environmental impacts of our products throughout
their life cycle, reduce the environmental impacts of our
own operations and continuously develop responsible
sourcingpractices.
We have recognized that we need to take under
consideration the whole value chain in order to reduce
the environmental impacts of our nonwovens products.
Therefore, we are committed to developing more
sustainable products by using raw materials with smaller
environmental footprint as well as continuously minimizing
environmental impacts of our own production. The most
material environmental impacts of our own production are
water consumption, waste generation, energy consumption,
and greenhouse gases generated in connection with
theproduction.
The general operating principles governing the
management of environmental issues are documented in
Suominen’s Code of Conduct. All our sites have certified
environmental management system (ISO 14001), quality
management system (ISO 9001) and related policies in
place. Our Supplier Code of Conduct includes requirements
concerning environmental responsibility.
Performance indicators, targets and results
Minimizing environmental impacts of our own operations,
and developing and oering sustainable nonwovens are
the key environment related themes in our sustainability
agenda.
Our target is to reduce our energy consumption,
greenhouse gas emissions, water intake 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. The COVID-19
pandemic did not have any material eect on our ability to
progress towards our sustainability targets in 2021.
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
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sustainable products and the sales of sustainable product
sales has increased by 47% compared to the base year
of2019.
In 2021, there were no significant environmental
incidents resulting from permit violations, claims or
compensations.
You can read more about our sustainability work from
the Annual Report p. 18 onwards.
Social responsibility and personnel
Operating principles
Suominen’s material aspects relating to social
responsibility and personnel are health, safety and
employee engagement. Suominen has committed to
ensure its employees, contractors and others working
for the company a fair, safe, equal and healthy work
environment. Suominen has a strong focus on accident
prevention and occupational safety. Suominen has
established Life Saving rules and Behavior Based Safety
Program to enforce its safety culture.
Suominen is also committed to providing a fair and
respectful place to work. Suominen recognizes the
business benefits of having a diverse workforce and aims
to provide equal opportunities for everyone. We do not
accept any kind of discrimination, including discrimination
due to age, gender, religion or ethnic origin. We expect
everyone to be treated with respect and do not tolerate
any form of harassment. We follow blind hiring principle in
new recruitments when possible to promote diversity and
to ensure equal opportunities when applying for a job.
We provide working conditions that comply with
local statutory requirements and collective bargaining
agreements and we support basic labor rights as defined
in the Declaration on Fundamental Principles and Rights
at Work by the International Labour Organization (ILO).
We respect our employees’ right to form or join trade
unions and to bargain collectively. We specifically and
strictly prohibit and do not tolerate or engage in any forms
of forced labor, child labor, human tracking or slavery.
The operating principles concerning health, safety and
our labor rights are documented in the Code of Conduct.
Performance indicators, targets and results
Safety, increasing employee engagement and building
high-performance culture are the key people related
themes in our sustainability agenda.
Reducing the number of accidents is a key target of
Suominen’s safety work. Our target is zero lost time
accidents. In 2021, 4 lost time accidents occurred at our
plants.
Increasing employee engagement is a key target relating
to our people. We conducted for the second time a global
employee engagement survey in 2021, and based on
the results our employee engagement index was 66%.
The index is a combination of questions concerning
our people’s retention, likelihood to recommend the
company, organizational pride and commitment. The
results from the survey will be used to create concrete
action plans in order to systematically develop our
employee engagement in the future. Our target is that our
engagement index will be 73% by 2025. The COVID-19
pandemic did not have any material eect on our ability to
progress towards our sustainability targets in 2021.
Indicator   
Health and safety LTA* LTA* LTA*
Employee engagement index % % N/A
*Lost time accident
You can read more about our sustainability work from the
Annual Report p. 18 onwards.
Human rights
Suominen recognizes its responsibility to respect human
rights and requires its business partners to do the same.
Suominen complies with local, regional and
international laws and regulations, and respects the
protection of human rights as defined in the United
Nation’s Universal Declaration on Human Rights. Our
commitment to respecting human rights is stated in
our Code of Conduct, which was renewed in 2020 and
trained to employees in 2021 in accordance with our
sustainability targets.
All Suominen’s suppliers are expected to comply with
Suominen’s Supplier Code of Conduct. Our target is to
establish a raw material supplier auditing process and to
have our raw material suppliers audited, based on a risk
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assessment, against our Supplier Code by 2025. This work
is now ongoing. Human rights issues will be incorporated
into the supplier auditing process.
In 2021, there were no reported violations of human
rights.
Anti-corruption and bribery
Suominen is committed to complying with all applicable
laws and responsible business principles. Suominen’s
operations are ethical and transparent and our
sustainability requirements apply also to our suppliers.
Suominen’s Code of Conduct and Gift, Entertainment
and Anti-bribery Policy guide our operations regarding the
prevention of corruption and bribery. All employees are
expected to be aware of and comply with applicable laws
and regulations and are advised to seek legal advice if in
doubt. Any employee who becomes aware of an actual
or potential violation of the Code has the responsibility
to speak up. Our Code of Conduct was renewed in
2020 according to our sustainability agenda targets
and a mandatory training to employees was conducted
during2021.
We select our business partners carefully and
collaborate only with those who conduct business
ethically and responsibly. We expect our suppliers and the
business partners that act on our behalf to understand
and comply with all applicable laws and regulations
and to apply the same legal and ethical standards that
Suominen practices. Corruption and bribery issues will
be incorporated into the supplier auditing process we are
implementing.
In 2021 there were no identified corruption or
briberycases.
Suominen’s EU taxonomy report
The result of Suominen’s taxonomy analysis
The EU sustainable finance taxonomy is a classification
system that provides a common understanding of
economic activities that make a substantial contribution
to the EU’s environmental goals, by providing consistent,
objective criteria. In this first phase criteria have been
set for the sectors that are most relevant for achieving
climate neutrality and delivering on climate change
adaptation. This includes sectors such as energy, forestry,
manufacturing, transportation and construction. The
taxonomy regulation entered into force in 2020, and in
2021 non-financial companies are required to disclose
the proportion of taxonomy-eligible and taxonomy non-
eligible economic activities in their total net sales, capital
expenditure (CapEx) and operational expenditure (OpEx).
Suominen’s sole business is the manufacturing and sale
of nonwovens for which no technical screening criteria
have been defined in the EU taxonomy so far. Hence no
proportion of Suominen’s net sales is taxonomy-eligible.
Similarly, as Suominen’s investments and operations
are mostly related to nonwovens production activities,
the majority of Suominen’s CapEx and OpEx is not
taxonomy-eligible.
At Suominen we believe that our ambitious targets to
reduce our greenhouse gas emissions, our comprehensive
sustainable product oering and our continuous work
to explore new innovative fibers to be able to oer even
more sustainable and low-carbon nonwoven products
represents our contribution to climate change mitigation
and adaptation.
Regarding minimum social safeguards, Suominen is
committed to the OECD Guidelines for Multinational
Enterprises, United Nations (UN) Guiding principles on
Business and Human Rights and the International Labor
Organization (ILO) Declaration on the Fundamental
Principles and Rights at Work.
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Summary of Suominen’s taxonomy-eligibility in 2021
Total (EUR million)
Proportion of taxonomy-eligible
economic activities as defined in
the EU Taxonomy (%)
Proportion of taxonomy non-
eligible economic activities as
defined in the EU Taxonomy (%)
Net sales (turnover) . % %
CapEx . % %
OpEx . % %
Share information
Share capital
The 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 aliated in a book-entry system.
Share trading and price
The 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.
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,
Total CapEx has been calculated as defined in Annex I of
Commission Delegated Regulation (EU) 2021/2178 (KPIs
of Non-financial Undertakings), and it includes additions
to property, plant and equipment (IAS 16), intangible
assets (IAS 38) and right-of-use assets (IFRS 16). The
proportion of taxonomy-eligible CapEx is defined as
CapEx related to assets or processes that are associated
with taxonomy-aligned economic activities or related to
the purchase of output from taxonomy-aligned economic
activities as well as to individual measures enabling the
activities to become low-carbon or to lead to greenhouse
gas reductions.
Total OpEx has been calculated as defined in Annex I of
Commission Delegated Regulation (EU) 2021/2178 (KPIs
of Non-financial Undertakings), and it includes direct non-
capitalized costs, that relate to research and development
activities, building renovation measures, short-term lease,
maintenance and repair, and any other direct expenditures
relating to the day-to-day servicing of assets of property,
plant and equipment by Suominen or third party to whom
activities are outsourced that are necessary to ensure
the continued and eective functioning of our assets.
The proportion of taxonomy-eligible OpEx is defined as
expenditure, including direct research and development
expenses, related to assets or processes associated
with taxonomy-aligned economic activities. In addition,
also expenditure related to the purchase of output from
taxonomy-aligned economic activities and to individual
measures, which enable the activities to become low-
carbon or to lead to greenhouse gas reductions, is
included in taxonomy-eligible OpEx.
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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 o
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 program.
On September 13, 2021, in accordance with the
matching restricted share plan, 9,352 shares were
transferred to the participants of the program.
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
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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 oer
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 2019–2021
Suominen also had a Matching Restricted Share Plan
for selected key employees in the Suominen Group.
The aim of the MRSP was to align the objectives of the
shareholders and key employees in order to increase
the value of the company in the long-term, to retain
key employees at the company, and to oer 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 consolidated financial statements.
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Treasury shares
On 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.
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%.
Information pursuant to Decree
1020/2012 by the Ministry of Finance,
not presented in the consolidated
financial statements
There are neither restrictions of transfer nor redemption
or approval clauses related to the shares of Suominen
Corporation or securities entitling to shares.
Suominen Corporation is not participating in any
arrangements where the financial rights related to a share
or a security entitling to hold a share would have been
separated.
In accordance with the Articles of Association of
Suominen Corporation and the Companies Act, the
Shareholders’ Meeting elects the Board of Directors. In
accordance with the Articles of Association, the Board
of Directors decides on the nomination of the President
& CEO. The Articles of Association includes no specific
stipulation on altering the Articles of Association.
Shareholders’ Meeting decides on share issues and
acquisition of own shares, in accordance with the Limited
Liability Companies Act.
The members of the Board of Directors have no specific
contracts with the company regarding compensation
in case a member resigns, is dismissed or his/her task
ceases to exist due to a public tender oer. The President
& CEO has no separate contract to be applied if his/her
contract would be terminated due to a public tender oer.
In accordance with the service contract made by the
company and the President & CEO, should the company
terminate the President & CEO’s contract of service,
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severance pay corresponding to 12 months’ salary shall be
paid. Other principal terms and conditions of the service
contract of the President & CEO are presented in Note35
of the consolidated financial statements and in the
Remuneration Report 2021 of Suominen Corporation.
Composition of the Nomination Board
In accordance with the decision taken by the Annual
General Meeting of Suominen Corporation, the
representatives notified by the company’s three largest
shareholders were elected to Suominen Corporation’s
permanent Nomination Board. In addition, the 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 Meeting
The Annual General Meeting (AGM) of Suominen
Corporation was held on March 25, 2021.
The AGM adopted the Financial Statements and the
Consolidated Financial Statements for the financial
year 2020 and discharged the members of the Board of
Directors and the President & CEO from liability for the
financial year 2020. The AGM approved the Remuneration
Report for the governing bodies and the Board of
Directors’ proposals concerning forfeiture of the shares
entered in the 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. The
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 oce 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
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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 risks
Suominen 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 eciency 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..
Competition
Suominen has numerous regional, national and global
competitors in its dierent 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 oering, 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 materials
Suominen 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
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interruptions in the production of the majority of
Suominen’s products are unlikely.
Price and availability of energy
Energy 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 risks
Suominen’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 oering 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 aected
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
eect 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 aect 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.
Investments
Suominen 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 security
Suominen’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.
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Financial risks
The 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 tax. 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
the discounted projected future cash flows. Actual cash
flows can dier 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 insucient 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.
Non-financial risks and their management
The assessment of Suominen’s most significant risks also
covers significant non-financial risks. A typical eect
of the realization of a non-financial risk would be a
negative reputation eect. Suominen’s Code of Conduct
guides our all operations. Suominen requires that all
of its employees comply with the Code of Conduct.
Suominen’s suppliers are expected to comply with the
company’s Supplier Code of Conduct, which establishes
the standards for conducting business with Suominen.
Risks related to the environment and climate
change
Environmental risks have been identified as part of the ISO
14001 environmental management system, and they are
controlled and managed by each production plant. The
most significant identified environmental risks include
binder or chemical spills and fires at production sites,
which may cause harm to environment. These risks are
managed by identifying and executing mitigation actions
to minimize likelihood and severity of environmental risks.
Suominen could be impacted by risks related to climate
change including weather-related events such as storms,
floods, droughts, fires, hurricanes and other extreme
weather conditions that may damage the company’s
production facilities or disrupt its value chains. Suominen
manages these risks with appropriate precautions,
business continuity plans and insurances. As an example,
risks relating to the continuity of raw material supply are
managed by working with multiple international suppliers,
and risks relating to the company’s own manufacturing
facilities are reduced for example by Suominen’s
geographical diversity.
Social and employee-related risks
Suominen’s success is dependent upon the professional
competence and expertise of its management and
personnel, its ability to secure employee commitment,
and success in recruiting skilled people in the future.
Suominen implements and continuously develops
processes and practices that enable us to attract, motivate
and retain talented employees. We work for building and
maintaining a culture of high performance where people
are encouraged to set the bar higher and are able to
perform at their top potential every day.
Occupational safety related risks are managed
through continuous safety work and by ensuring that
work guidelines are followed. To minimize safety risks
Suominen has established Life Saving Rules, which are
mandatory for everyone to comply in any circumstances.
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As a preventive measure, Suominen has a Behavior Based
Safety (BBS) program in use, implemented through
safety walks with the purpose to identify unsafe and safe
behavior or conditions as well as corrective actions to
improve safe working conditions.
Risks related to human rights and corruption
or bribery
Suominen has identified risks related to human rights in
the safe working conditions and inappropriate treatment
of employees. Suominen has zero tolerance for any kind
of discrimination. Human rights topics are incorporated
into the Code of Conduct and will also be incorporated
into the supplier audit process.
Suominen does not tolerate corruption or bribery in any
form. As stated in Suominen’s Code of Conduct and Gift,
Entertainment and Anti-Bribery Policy, Suominen does
not oer, give, solicit, or accept any improper or corrupt
payments or benefits in return for a favorable decision
or improper business advantage. Suominen expects all
service providers, agents, consultants, and other third
parties who act on its behalf to adhere to the same
standards. Suominen has various channels for raising
concerns and reporting misconduct, including a SpeakUp
Line hosted by an independent third party. Suominen
expects all employees and suppliers to report any
violations of the Code of Conduct or the Supplier Code of
Conduct to the company.
Business environment
Suominen’s nonwovens are, for the most part, used in
daily consumer goods such as wet wipes as well as in
hygiene and medical products. In these target markets
of Suominen the general economic situation determines
the development of consumer demand even though the
demand for consumer goods is not very cyclical in nature.
North America and Europe are the largest market areas
for Suominen. In addition, the company operates in the
South American markets. The growth in the demand for
nonwovens has typically exceeded the growth of gross
domestic product by a couple of percentage points.
The market expectation is that in the long run the end
user demand for wipes will remain above pre-COVID
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.
Information on the separate financial
statements of the parent company
Key ratios of the parent company
EURthousand   
Net sales , , ,
Operating profit/loss , , -,
% of net sales . . -.
Net financial expenses , , ,
Profit/loss before appropriations
and income taxes , , -
Profit/loss for the period , , -,
Return on invested capital, % . . .
Salaries -, -, -,
Average number of personnel   
The separate financial statements of Suominen
Corporation have been prepared according to the Finnish
Accounting Act, the Accounting Decree and other laws
and regulations relating to financial statements (FAS). The
consolidated financial statements of Suominen Group
have been prepared in compliance with the International
Financial Reporting Standards (IFRS).
Net sales of Suominen Corporation were EUR 25.9
million (27.9) and operating profit EUR 7.1 million (5.4). Net
94 Suominen Annual Report 2021
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financial expenses were EUR +14.4 million (+4.7). Profit
for the period was EUR 15.2 million (6.6). There are no
related party loans except loans to other Suominen group
companies.
In the financial year 2021, the parent company had on
average 32 (33) employees and at the end of the year 31
(33) employees.
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 by the Board of Directors for
the use of the profit
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.
Corporate Governance Statement,
Remuneration Report and Statement
on Non-Financial Information
The Corporate Governance Statement 2021 and
Remuneration Report 2021 of Suominen Corporation
have been disclosed as separate statements at
www.suominen.fi > Investors > Corporate Governance.
Both statements are included also in the company’s
Annual Report 2021.
Suominen’s Statement on Non-financial information
as required by Directive 2014/95/EU and the Finnish
Accounting Act is disclosed as part of this Board of
Directors Report.
Events after the reporting period
Notification of change in holdings according
to chapter 9, section 10 of the Securities
MarketAct
Suominen 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.
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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, the 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.
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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 oer 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% 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% 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.
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Consolidated statement of financial position
EUR thousand
Consolidated financial statements
(IFRS) 2021
Note
December ,

December ,

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
Note
December ,

December ,

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 dierences  -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
Debenture bonds  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
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Consolidated statement
of profit or loss
EUR thousand
Consolidated statement
of comprehensive income
EUR thousand
Note
January –
December ,

January –
December ,

Net sales  443,219 458,893
Cost of goods sold -392,390 -389,123
Gross profit 50,828 69,770
Other operating income  4,434 2,584
Sales, marketing and
administration expenses -26,238 -27,946
Research and development
expenses -2,678 -2,767
Other operating expenses  595 -2,150
Operating profit 26,941 39,492
Net financial expenses  -390 -5,582
Profit before income taxes 26,551 33,910
Income taxes  -5,816 -3,794
Profit for the period 20,734 30,116
Earnings per share, EUR
Basic  0.36 0.52
Diluted 0.36 0.52
January –
December ,

January –
December ,

Profit for the period 20,734 30,116
Other comprehensive income:
Other comprehensive income that
will be subsequently reclassified to
profit or loss:
Exchange dierences 9,137 -15,504
Reclassified to profit or loss − -327
Income taxes related to other
comprehensive income -781 929
Total 8,356 -14,902
Other comprehensive income that
will not be subsequently reclassified
to profit or loss:
Fair value changes of equity
instruments − -8
Remeasurements of defined benefit
plans 26 -10
Income taxes related to other
comprehensive income -7 3
Total 19 -15
Total other comprehensive income 8,375 -14,917
Total comprehensive income for the
period 29,109 15,199
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Consolidated statement of changes in equity
EUR thousand
Note
Share
capital
Share
premium
account
Reserve for
invested
unrestricted
equity
Treasury
shares
Exchange
dierences
Fair value
and other
reserves
Retained
earnings
Total equity
attributable to
owners of the
parent
Equity January 1, 2021 11,860 24,681 81,361 -44 -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 − − − -5,759 -11,519
Share-based payments − − − − − − 1,276 1,276
Acquisition of treasury
shares − − − − − − -1,640 -1,640
Conveyance of treasury
shares − − 90 44 − − -44 90
Equity December 31, 2021 11,860 24,681 75,692 − -5,578 -7 56,549 163,199
Note
Share
capital
Share
premium
account
Reserve for
invested
unrestricted
equity
Treasury
shares
Exchange
dierences
Fair value
and other
reserves
Retained
earnings
Total equity
attributable to
owners of the
parent
Equity January 1, 2020 11,860 24,681 81,269 -44 707 264 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 − − − − 92
Equity December 31, 2020 11,860 24,681 81,361 -44 -13,933 -7 41,962 145,882
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Consolidated statement of cash flows
EUR thousand
Note
January –
December , 
January –
December , 
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 −
Distribution of dividend and return of capital -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
Eect 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
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Notes to the consolidated
financial statements
NOTE1 Significant accounting policies
– consolidated financial statements
Basic information
Suominen Corporation is a public limited liability company
organized under the laws of the Republic of Finland
and domiciled in Helsinki, Finland (Karvaamokuja 2 B,
00380 Helsinki, Finland). Suominen’s shares are publicly
traded in the Nasdaq Helsinki Ltd. (Mid Cap). Suominen
Corporation is the parent company of the Group. The
Group manufactures nonwovens mainly for consumer
goods companies.
The Board of Directors of Suominen Corporation has in
its meeting on February 2, 2022 approved these financial
statements to be published. According to the Finnish
Limited Liability Companies Act, the shareholders have
a possibility to approve or reject or make a decision on
altering the financial statements in a General Meeting to
be held after the publication of the financial statements.
Basis for presentation
The 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
Limited Liability Companies Act.
The consolidated financial statements include the
financial statements of Suominen Corporation and its
subsidiaries. The functional and reporting currency of the
parent is euro, which is also the reporting currency of the
consolidated financial statements. Functional currencies
of subsidiaries are determined by the primary economic
environment in which they operate.
The financial year of Suominen Group as well as of
the parent and subsidiaries is the calendar year ending
31December.
The financial statements have been prepared under
the historical cost convention except as disclosed in the
accounting policies.
The figures in Suominen’s consolidated financial
statements are mainly presented in EUR thousands. Due
to rounding dierences the figures presented in tables do
not necessarily add up to the totals of the tables.
New accounting standards
New or amended standard, annual improvements or
interpretations applicable from January 1, 2021:
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 dierent 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
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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
of 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 unaected
by the likelihood that an entity will exercise its deferral
right. The amendment will be applied retrospectively. The
amendment has no eect 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 eect 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
eects 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
dierences. 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 dierences 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 oset
with each other, the amendment has not material eect
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.
Consolidation principles
The consolidated financial statements include the parent
and its subsidiaries. Subsidiaries are companies in which
the parent has, based on its holding, more than half of
the voting rights directly or via its subsidiaries or over
which it otherwise has control. The Group has control
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over an entity when it has a participation in the entity and
is exposed to or has right to its variable revenues and can
influence the revenues by using its control over the entity.
Divested subsidiaries are included in the consolidated
financial statements until the control is lost, and
companies acquired during the reporting period are
included from the date when the control has been
transferred to Suominen. Acquisitions of subsidiaries are
accounted for under the acquisition method under which
the purchase consideration is allocated to the acquired
identifiable assets and liabilities assumed, which are
measured at fair value at the acquisition, and the residual
is recognized as goodwill. The transaction costs related to
a business combination are recognized in profit or loss.
All intra-group transactions are eliminated as part of the
consolidation process. Unrealized losses are eliminated
only to the extent that there is no evidence of impairment.
Foreign subsidiaries
In the consolidated financial statements, the statements of
profit or loss, statements of comprehensive income and
statements of cash flows of foreign subsidiaries have been
translated into euros using the average exchange rates
of the reporting period and the statements of financial
positions have been translated using the closing exchange
rates at the end of the reporting period.
The exchange dierence arising from translating the
statements of profit or loss, statements of comprehensive
income and statements of financial position using
the dierent exchange rates is recognized as other
comprehensive income and included in equity in the
cumulative exchange dierence. Exchange dierences
arising from the translation of the net investments in
foreign subsidiaries in non-euro area are also recognized
in other comprehensive income and included in equity in
the cumulative exchange dierence (Note 14).
On the disposal of all or part of a foreign subsidiary,
the cumulative amount or proportionate share of the
exchange dierence is reclassified from equity to profit or
loss as a reclassification item in the same period in which
the gain or loss on disposal is recognized.
Transactions in foreign currencies
In their own day-to-day accounting the Group companies
translate transactions in foreign currencies into their own
reporting or functional currency at the exchange rates
prevailing on the dates of the transactions. At the end of
the reporting period, the unsettled balances of foreign
currency transactions are measured at the exchange rates
prevailing at the end of the reporting period. Foreign
exchange gains and losses arising from trade receivables
are entered as adjustments of net sales and foreign
exchange gains and losses related to trade payables are
recorded as adjustments of costs of goods sold. Foreign
exchange gains and losses arising from financial items are
recorded as financial income and expenses.
Reportable segments
Suominen has no reportable segments.
The business of Suominen consists of one operating
segment, Nonwovens. The net sales of Suominen
consist entirely of net sales of the Nonwovens operating
segment. All the products Suominen produces and sells
are nonwoven products, and the production process
and technology of all the products are mainly similar.
Also other resources, such as production management,
are common to all products. The customers are mainly
converters of nonwovens, and the risks or profitability
related to products or customers do not dier from each
other. Also distribution of the products is similar.
The sales organization of Suominen is organized
geographically as Europe and Americas business areas.
Account management of major customers (“Global
Accounts”) is, however, centralized and independent of
the business areas.
The production facilities of Suominen are managed
centrally, and also the high level supply planning is a
centralized function. The centralized supply planning
optimizes the use of the Group’s production capacity.
The manufacturing of the products is allocated, based on
the technical parameters of the products and available
production capacity, to the production facilities. Also the
allocation of marketing and R&D resources on dierent
products or production technologies is decided centrally.
The chief operating decision maker of Suominen is the
President & CEO, who is assisted by the Executive Team.
The President & CEO makes decisions on allocating the
resources of the Group. However, material items, such as
major investments, as well as items which are required by
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governing law to be decided by the Board of Directors,
are presented to the Board for approval.
Entity-wide disclosures are presented in Note 24.
Research and development
Expenditure on research and development is recognized
in profit or loss. Expenditure on product and process
development is not capitalized as no separate assets are
developed in the research and development activities or
future economic benefits arising from the assets cannot
be reliably assessed.
Software-as-a-Service agreements
Suominen recognizes the expenses arising from
software-as-a-service (SaaS) arrangements mainly in
profit or loss as expenses arising from service contracts.
However, if the contract contains a lease, either the
whole arrangement or the lease component of the
arrangement are recognized in accordance with IFRS 16. If
the arrangement provides a resource that Suominen can
control, an intangible asset in accordance with IAS 28 will
be recognized.
Government grants
Suominen has changed its accounting pricinples of
government grants. Previously Suominen had applied
the osetting method for government and other grants.
Changing the accounting principle of recognizing
government grants does not have any material eect
on the previous years’ financial statements thus no
restatement has been made.
When government or other grants are received to
compensate for expenses, they are recognized in profit
or loss in other operating income in the same periods in
which the corresponding expenses are incurred. When
the grants are related to assets, the grants are recognized
as deferred income and recognized as other operating
income during the useful life of the asset.
Dividends and other distribution of funds
Dividends or other distribution of funds proposed by the
Board of Directors are not recognized in the financial
statements until they have been approved by the
shareholders at the Annual General Meeting.
Audit
Quarterly information as well as interim reports are not
audited.
Other accounting principles
Accounting principles related to assets, liabilities and line
items in the statement of profit or loss are presented in
the disclosure information related to each item.
NOTE2 Accounting estimates and
judgements
The preparation of financial statements in conformity with
IFRS requires management to make accounting estimates.
Accounting estimates are monetary amounts in financial
statements that are subject to measurement uncertainty.
In developing accounting estimates the management uses
judgements or assumptions. Measurement techniques
are used in developing an accounting estimate. The
techniques can include estimation and valuation
techniques.
An accounting estimate may have to be changed
if changes occur in the circumstances on which the
accounting estimate was based or as a result of new
information, new developments or more experience.
The estimates and assumptions aect the reported
amounts of assets and liabilities, the amounts of
contingent assets and liabilities at the end of the reporting
period and the recognized amounts of revenues and
expenses during the reporting period. Actual results may
dier from these estimates.
The following items include accounting estimates:
impairment testing of assets, especially of goodwill;
estimated fair values of property, plant and equipment
and intangible assets acquired in an acquisition and their
estimated useful lives; useful lives of other intangible
assets and property, plant and equipment; measurement
of inventories and trade receivables; estimation of
expected credit losses of trade receivables; recognition
and measurement of deferred taxes and estimates of the
amount and probability of provisions.
The carrying amounts of the lease liabilities and right-
of-use assets are aected, among other things, by the
management estimates made of the lease terms and
possible renewals of the lease agreements.
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Estimates and judgements are continuously evaluated
and are based on historical experience and other factors,
including expectations of future events, that are believed
to be reasonable under the circumstances.
The COVID-19 pandemic has not materially increased
Suominen’s risk of impairment losses of non-current
assets nor increased customer credit risk.
Critical accounting estimates and judgements are
presented in the disclosure information related to
eachitem.
NOTE 3 Financial risk management
Suominen is exposed to customary financial risks relating
to its global businesses such as foreign exchange and
interest rate risks, counterparty risks, funding and liquidity
risks and refinancing and credit risks. The treasury policy
approved by Suominen Corporation’s Board of Directors
defines the authorities, responsibilities and principles to
be followed in the Group. Financial risk management
is centralized within Suominen Group Treasury which
acts as an in-house bank providing financial services for
subsidiaries within the Group. Financial risk management
is governed by the treasury policy. The policy includes
principles and risk limits relating to debt structure,
liquidity, counterparties, bank relations and interest rate
and foreign exchange risk management.
In accordance with the treasury policy the President
& CEO approves all major funding operations and the
main principles to be followed when hedging financial
risks. The CFO is responsible for ensuring that the policy
is complied throughout the Group, and for individual
financial operations concerning funding, managing
liquidity and financial risks.
Foreign exchange risk
Suominen Group operates internationally and is therefore
exposed to transaction and translation risks arising from
fluctuations in foreign exchange rates which may have
an eect on profit or loss and financial position of the
Group. Transaction risks mainly arise from cash flows
generated by sale of products and purchase of materials
used in production. Translation risks arise from converting
the statements of profit or loss and the statements of
financial position of non-euro subsidiaries as well as
other currency-denominated assets and liabilities into the
Group’s functional currency euro. The aim of the Group’s
foreign exchange risk management is to hedge earnings
from operations and to avoid exchange rate volatility in
cash flows, profit or loss and in financial position.
In addition to US dollar, which generates the most
significant currency impact on Suominen, also Brazilian
real aects the Group’s foreign exchange risk.
The foreign exchange transaction exposure comprises
of committed and estimated currency cash flows for
the next 12 months. The transaction risk arises mainly
from the USD transactions in the euro area and in
Brazil and from euro transactions in the USA and Brazil.
The transaction risk related to USD arises both from
operational and financial transactions. The exchange rate
risks are hedged case by case using both derivatives and
terms of sales and purchasing contracts.
Common derivative contracts are used in hedging
to some extent, as their pricing can be verified on the
markets. Suominen does not apply hedge accounting in
currency hedging for the transaction risks. Changes in fair
values of currency hedging instruments are recognized in
profit or loss.
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The consolidated transaction exposure at the end of the reporting period is presented in the table below:
Transaction exposure  Transaction exposure 
EUR thousand  months’ cash flow
Hedged with
currency forwards  months’ cash flow
Hedged with
currency forwards
USD/EUR - -, , -,
EUR/BRL -, − - −
USD/BRL -, − -, −
Correspondingly, the translation exposure at the end of the reporting period was as follows:
Translation exposure 2021 against EUR
EUR thousand
Internal loan
receivables
Cash and cash
equivalents and
internal interest-
bearing liabilities
External interest-
bearing liabilities
Equity of foreign
subsidiaries
Hedged
with currency
derivatives
Open currency
exposure
BRL − , − , − ,
USD , , − , − ,
Translation exposure 2020 against EUR
EUR thousand
Internal loan
receivables
Cash and cash
equivalents and
internal interest-
bearing liabilities
External interest-
bearing liabilities
Equity of foreign
subsidiaries
Hedged
with currency
derivatives
Open currency
exposure
BRL − , − , − ,
USD , , − , − ,
Internal loan receivables consist of loan receivables
granted by Suominen Corporation to subsidiaries outside
of the euro area. The loan receivables from subsidiaries
denominated in USD are in substance equity as the
repayment is not anticipated in the foreseeable future.
These loan receivables amounted to USD 57.4 million,
equaling to EUR 50.7 million at the end of the reporting
period. The exchange dierences from these loan
receivables are recognized in exchange dierences in
other comprehensive income as they are in substance
exchange dierences arising from equity. Exchange
rate dierences arising from other internal and external
interest-bearing liabilities are recognized in profit or loss.
Sensitivity analysis of financial instruments
IFRS requires disclosing a sensitivity analysis of financial
instruments. In the sensitivity analysis in the table in
the following page, the financial instruments include
intra-group currency denominated loan receivables.
Sensitivities of the currency rates at the end of the
reporting period are estimated based on the actual
volatility of the currencies over the past 12 months. The
exchange rate sensitivity is calculated for the following
12 months by using the rates at the end of the reporting
period. The change in the exchange rate is the change of
the euro rate against the US dollar rate.
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2021
EUR thousand
Currency
strengthens %
A. Eect on
profit after tax
B. Eect on
equity after tax
(excluding A)
Currency
weakens %
A. Eect on
profit after tax
B. Eect on
equity after tax
(excluding A)
USD/EUR − , - − -,
2020
EUR thousand
Currency
strengthens %
A. Eect on
profit after tax
B. Eect on
equity after tax
(excluding A)
Currency
weakens %
A. Eect on
profit after tax
B. Eect on
equity after tax
(excluding A)
USD/EUR − , - − -,
Eectiveness and sensitivity analysis of currency
hedging
The management has assessed the eectiveness of
hedging by combining the estimated net cash flows for
12 months in foreign currencies with the compensating
eect of the hedging instruments. The net eect from the
change in the USD exchange rate on profit after taxes in
2021 is estimated to be EUR - / + 122 thousand (EUR + /
- 237 thousand). Sensitivities of exchange rates at the end
of the reporting period are estimated based on the actual
volatility of the currencies over the past 12 months. The
exchange rate sensitivity is calculated for the following
12 months by using the currency rates at the end of the
reporting period.
2021
EUR thousand
Currency strengthens /
weakens %
Eect on  months’
currency cash flow
Eect on hedging
instruments Net eect after tax
USD/EUR + / - - /  - /  - / 
Interest rate risk
Suominen is exposed to interest rate risk when it funds its
operations with euro or currency denominated debt. The
risk arises from the repricing of floating rate debt and with
the raising of new floating rate debt. A fixed rate debt is
subject to fair value risk. The aim of the interest rate risk
management is to bring predictability to interest expenses
by keeping the duration within the agreed limits with an
optimal mix of fixed and floating rate debt. Suominen’s
loan portfolio can comprise both floating and fixed
interest rate loans. The loans drawn from the revolving
credit facility are floating rate loans. Suominen’s Board
of Directors has determined the interest rate structure
of the loan portfolio and the range in which it can vary.
The average interest duration can vary between 12 and
48months. At the end of 2021 duration excluding the
lease liabilities was 30 months (21 months in 2020).
At the end of the reporting period the carrying
amount of the Group’s loans with fixed interest rates was
EUR133.2 million (EUR 82.9 million). There were no loans
with floating interest rates at the end of 2021 or 2020.
Lease liabilities were EUR 15.9 million (EUR 17.4 million).
Credit risk
The most significant individual credit risks relate to trade
receivables from international companies mainly with high
credit ratings. The credit policy approved by the Board
of Directors governs the principles to be followed when
granting credit to customers and the responsibilities of the
organization in this area. Credit is granted to customers
after a credit approval process has been completed. The
credit exposure of customers is reported at least once
a month to the persons responsible for sales. Expected
credit losses of trade receivables recognized in profit or
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loss totaled EUR 14 thousand in 2021 (EUR 464 thousand).
The ageing structure of the trade receivables is disclosed
in Note 12 to the consolidated financial statements.
The maximum credit risk arising from trade receivables
equals the carrying amount of the trade receivables. The
determination of the credit risk related to trade receivables
is disclosed in Note 12.
For the vast majority of Suominen’s customers, the
COVID-19 pandemic has had a positive or at worst neutral
impact on the demand for their products. Hence the
customer credit risks have not materially increased.
The Group has agreed on a supply chain financing
program which covers one fifth of the sales at the end of
the reporting period. In accordance with the supply chain
financing agreement, the Group has transferred the rights
and responsibilities of these receivables to the counterparty
of the agreement.
The Board of Directors of Suominen has approved a
counterpart list of companies and financial institutions
with good credit ratings. These companies are allowed
counterparts in investment activities and derivative
contracts. The amount which can be invested in a single
counterpart is capped. Liquid funds can be invested
with reputable banks with sucient credit ratings or in
commercial papers oering high liquidity and credit ratings.
The Group’s maximum exposure to credit risk equals
to carrying amount of financial assets at the end of the
reporting period.
Liquidity and refinancing risk
Suominen aims to use dierent sources of funding. With
its house banks Suominen has long and trustworthy
relations and acquires advisory and other services
from them. Refinancing risk is managed by diversifying
loanmaturities.
Suominen entered in July 2020 into a new
single-currency syndicated revolving credit facility
agreement ofEUR 100 millionwith a maturity of three
years. The lenders for the facility are Danske Bank
A/S,FinlandBranch and Nordea. In May 2021, Suominen
announced that it has extended by one year the maturity
this syndicated revolving credit facility agreement. The
maturity of the facility is now extended toJuly 2024.
The credit facility includes leverage ratio and gearing as
financial covenants. The margin of the facility will increase
or decrease dependent onSuominenmeeting two
sustainability key performance indicators, namely increase
in the sales of sustainable products and reduction of
greenhouse gas emissions.
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 bond is listed on the ocial list of Nasdaq
HelsinkiLtd.
In addition, Suominen has a EUR 85 million unsecured
bond issued in September 2017, which carries a fixed
annual interest at the rate of 2.50% and matures
on October 3, 2022. The bond is listed on Nasdaq
HelsinkiLtd.
The average maturity of the committed facility
agreements was 2.5 years (2.5 years) at the end of the
reporting period. At the end of the reporting period the
unused revolving credit facility was EUR 97 million.
Suominen Group Treasury has established several cash
pooling structures with Group’s house banks in order to
manage the liquidity of the Group.
The maturity of financial liabilities and derivatives is
presented as undiscounted cash flows in the following
table. The table includes both interest payments and
repayments of capital.
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Maturity analysis of financial liabilities 2021
EUR thousand Falling due
Financial liabilities
Carrying
amount
Contractual
cash flows
Less than
 months − months − years − years After  years
Debentures , ,  ,  , ,
Lease liabilities , , , , , , ,
Other financial
liabilities    − − − −
Trade payables , , , − − − −
Total , , , , , , ,
Falling due
Contingent liabilities Total
Less than
 months − months − years − years
Guarantees , − −  ,
Commitments to leases not yet
commenced   − − −
Contractual commitments to acquire
property, plant and equipment   − − −
Total , , −  ,
Falling due
Derivative instruments
Carrying
amount
Contractual
cash flows
Less than
 months − months − years − years
Currency forward
contracts 
Cash inflows (-)   − − −
Cash outflows (+) - - − − −
Total  - - − − −
Maturity analysis of leasing obligations arising from operative leasing contracts is disclosed in Note 26.
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Maturity analysis of financial liabilities 2020
EUR thousand Falling due
Financial liabilities
Carrying
amount
Contractual
cash flows
Less than
 months − months − years − years After  years
Debentures , , − , , − −
Lease liabilities , , , , , , ,
Other financial
liabilities    − − − −
Trade payables , , ,  − − −
Total , , , , , , ,
EUR thousand Falling due
Derivative instruments
Carrying
amount
Contractual
cash flows
Less than
 months − months − years − years
Currency forward contracts
Cash inflows (-) -, -, − − −
Cash outflows (+) , , − − −
Total − − −
Maturity analysis of leasing obligations arising from operative leasing contracts is disclosed in Note 26.
EUR thousand Falling due
Contingent liabilities Total
Less than
 months − months − years − years
Guarantees , − −  ,
Commitments to leases not yet
commenced   − − −
Contractual commitments to acquire
property, plant and equipment , ,   −
Total , ,   ,
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NOTE 4 Management of capital
Suominen’s management of capital aims to support
business activities by ensuring the conditions to
operate by means of the Group’s financial position and
capital structure. In addition, the aim is to increase the
shareholder value by targeting at a competitive return
on invested capital. The capital structure must ensure
debt financing of the Group. In the capital management
planning process both current and future needs of the
business are taken into consideration together with
securing the competitive pricing of financing.
With respect to the capital structure the Board of
Directors of Suominen monitors equity ratio, gearing,
and leverage ratio. Equity ratio is calculated as the ratio of
equity to the total assets adjusted with advance payments
received. Gearing is calculated as the ratio of interest-
bearing net debt to equity. Leverage ratio is calculated as
the ratio of interest-bearing net debt to EBITDA.
The capital structure can be influenced by distributing
dividends or other funds and share issues. If there is a
need, the Group can buy back own shares or issue new
shares as authorized by the general meetings, or decide to
sell assets or businesses to reduce liabilities.
At the end of 2021, the Group’s equity ratio was 42.2%
(46.0%) and gearing was 30.4% (25.4%).
Suominen participates in the Supply Chain Financing
programs of certain customers. Under the programs the
customers’ trade receivables are sold on a non-recourse
basis. The programs release capital employed.
Equity ratio and gearing at the end of the reporting period
EUR million  
Nominal value of interest-bearing liabilities . .
Interest-bearing receivables − -.
Cash and cash equivalents -. -.
Interest-bearing net debt . .
Total equity attributable to owners of the parent . .
Assets total - advances received . .
Gearing, % . .
Equity ratio, % . .
Reference
Note 16
Note 12
Consolidated statement of financial position
The funding is managed by maintaining good relations
with the financial institutions.
Suominen plans to cover the loan amortization needs
with its cash flow from operations.
The Group’s loan agreements include covenant terms
which are linked to consolidated key figures. The credit
facility includes leverage ratio and gearing as financial
covenants. If the covenant terms are not fulfilled,
negotiations with the lenders will be initiated.
Interest-bearing liabilities of Suominen are presented in
Note 16 of the consolidated financial statements.
112 Suominen Annual Report 2021
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NOTE 5 Goodwill
EUR thousand
Impairment testing of goodwill
In impairment testing the recoverable amount for the cash
generating unit is determined as the value in use. Value in
use comprises the discounted projected future cash flows.
Projected cash flows are based on actual performance,
annual plans as well as five-year forecasts based on the
Group’s strategy. The main assumptions of forecasts are
always reviewed during the impairment testing. Cash
flows in the period beyond the five-year forecasted period
are extrapolated using the growth rates for Suominen’s
business. The key assumptions used in the value in use are
sales trend of the cash-generating unit, the profitability of
the business, expense levels and the discount rate used.
The replacement investments needed for maintaining
the existing production capacity have been estimated
based on the planned depreciation during the useful lives
of each asset in the cash-generating unit. Replacement
investments include also renewals of lease contracts.
Suominen published in early 2020 its strategy covering
five years. In accordance with the strategy, Suominen
aims to grow by creating innovative and more sustainable
nonwovens for the customers and aims to improve
profitability through more ecient operations and a high
performance culture. The main focus is on wipes.
The annual growth rate for Suominen’s net sales during
the period covered by the forecast (2022−2026) has
been estimated at 1.5%. The estimated growth rate has
decreased from the previous year as products containing
polyester are expected to be replaced by 100% viscose
products, which have lower production rates due to
production technology. Based on the market research
information and comments from Suominen’s customers,
the demand is expected to continue to grow.
The discount rate has been derived by using targeted
capital structure at the time of the impairment test.
Gearing, or ratio of net debt to equity, is 60%. The lease
liabilities in the statement of financial position have been
taken into account in the calculation of the discount
rate. Cost of capital has been calculated as a weighted
average pre-tax rate for equity and debt and taking into
the consideration the risk-free rate and risk margins of
equity and debt respectively. The components of the
Accounting principles
Goodwill represents the excess of the purchase
consideration over the fair value of acquired net assets.
Goodwill is allocated to those cash generating units
which benefit from the acquired net assets as well as
from synergies arising from the acquisition. The carrying
amount of goodwill is tested at least annually for
impairment. If the impairment testing indicates, that the
recoverable amount of the cash generating unit which
includes goodwill is lower than its carrying amount,
an impairment loss of goodwill and of other assets, if
applicable, is recognized in the statement of profit or
cost of capital are revised annually. Discount rate used in
the calculation is the weighted average of the risk-free
10-year government bond rates in the countries where
Suominen operates.
Impairment testing is based on present estimates
of future development at the time of the impairment
testing. The uncertainty in measuring the values in use is
captured by analyzing variations in the amount or timing
of cash flows. The element of uncertainty and risk has
been accounted for in the discount rates and by taking
into consideration the experience from the previous
impairment tests.
Based on the impairment testing, the goodwill of
Suominen is not impaired.
When performing impairment testing, not only the
carrying amount of goodwill is included in the tested
carrying amount but also the carrying amount of
property, plant and equipment and right-of-use assets as
well as net working capital. If the pre-tax discount rate
would increase by 9.26 percentage points or the annual
terminal operating profit percentage would decrease by
5.236 percentage points, the recoverable amount would
equal the carrying amount.
The critical assumptions in impairment testing
 
Pre-tax discount rate .% .%
Growth in net sales 2022−2026 (2021−2025) .% .%
Annual terminal growth rate .% .%
Annual terminal operating profit percentage .% .%
113Suominen Annual Report 2021
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loss. The impairment loss of goodwill will not be reversed
during subsequent reporting periods.
At the end of the reporting period, the carrying amount
of goodwill was EUR 15,495 thousand (EUR 15,495
thousand in 2020). The Group has one operating segment
(Nonwovens), which is also a cash generating unit to
which goodwill has been allocated in its entirety.
Critical accounting estimates and judgements
Goodwill is tested annually for possible impairment.
The recoverable amounts have been determined based
on the assets’ value in use which require the use of
estimates. The actual cash flows can dier from estimated
discounted future cash flows. Uncertainties related to the
projected future cash flows include, among others, the
long economic useful lives of the assets, the estimated
sales prices, production costs and changes in discount
rate used in testing.
114 Suominen Annual Report 2021
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Intangible
rights Goodwill
Other
intangible
assets
Advance
payments and
assets under
construction Total
Acquisition cost January 1 , , ,  ,
Exchange dierence  −  − 
Additions  − −  
Decreases and disposals - − - - -
Reclassifications  − − - 
Acquisition cost December 31 , , ,  ,
Accumulated amortization and impairment losses January 1 -, − -, - -,
Exchange dierence - − - − -
Amortization for the reporting period -, − - − -,
Decreases and disposals  −   
Accumulated amortization and impairment losses December 31 -, − -, − -,
Carrying amount December 31 , , ,  ,
Intangible
rights Goodwill
Other
intangible
assets
Advance
payments and
assets under
construction Total 
Acquisition cost January 1 , , ,  ,
Exchange dierence - − - − -
Additions  − −  
Decreases and disposals - − - − -
Reclassifications  − − - −
Acquisition cost December 31 , , ,  ,
Accumulated amortization and impairment losses January 1 -, − -, - -,
Exchange dierence  −  − 
Amortization for the reporting period -, − - − -,
Decreases and disposals  −  − 
Accumulated amortization and impairment losses December 31 -, − -, - -,
Carrying amount December 31 , , , − ,
NOTE 6 Intangible assets
EUR thousand
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In 2011, EUR 5,979 thousand of the purchase
consideration related to the acquisition of Ahlstrom’s
Home and Personal business was allocated to customer
relations. At the end of the reporting period, the carrying
amount of these customer relations was EUR 1,303
thousand.
Accounting principles
Intangible rights include patents, trademarks, software
licences as well as customer relations which were
identifiable assets at the business combination and are
measured at fair value at the acquisition date. Other
intangible assets are development and other costs
which are directly attributable to the design and testing
of identifiable and unique software or similar intangible
assets. If an intangible asset is a qualifying asset as defined
in IAS 23, i.e. an asset that necessarily takes a substantial
period of time to get ready, the borrowing costs are
capitalized into the initial acquisition cost of the asset.
Subsequent expenditure on intangible assets is
capitalized only if the future economic benefits from the
asset exceed the initially planned level. Otherwise the
expenditure is recognized as an expense in the statement
of profit or loss.
Intangible rights and other intangible assets are
recognized in the statement of financial position at
their initial acquisition cost less cumulative amortization
and impairment losses, if any. They are amortized
using planned straight-line amortization during of their
estimated useful lives. Intangible assets from acquisition
of a subsidiary are stated at their fair values at the date of
the acquisition.
Suominen has no other intangible assets than goodwill
which have indefinite useful life. Goodwill and intangible
assets not yet available for use are tested annually
for impairment. Disclosure information of goodwill
is presented in Note 5 of the consolidated financial
statements.
Other intangible assets are tested for impairment if
there are indications that the asset may be impaired.
Impairment testing is described in Note 29 of the
consolidated financial statements.
Amortization periods for intangible assets
Goodwill no amortization
Intangible rights 3–13 years
Customer relations 13 years
Other intangible assets 5–10 years
Advance payments and
assets under construction no amortization
Critical accounting estimates and judgements
If there is indication of impairment, the carrying amounts
of intangible assets are compared with their recoverable
amounts. The recoverable amount is the higher of fair
value and value in use. Value in use is calculated by
discounting the future cash flows arising from the the
asset. If the recoverable amount of an asset is lower than
the carrying amount, an impairment loss is recognized.
Both the amounts and timing of the cash flows are based
on management estimates.
Useful lives of intangible assets are based on
management’s best estimate of the period the asset is
expected to be available for use by Suominen. The actual
useful life can, however, dier from the expected useful
life resulting in adjustment of annual amortization of the
asset or in recognizing of an impairment loss.
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NOTE 7 Property, plant and equipment
EUR thousand
Land
Buildings
and
constructions
Machinery
and
equipment
Other
tangible
assets
Advance
payments and
assets under
construction Total
Acquisition cost January 1 , , , , , ,
Exchange dierence  , ,  ,
Additions −   − , ,
Capitalized borrowing costs − − − −  
Decreases and disposals − - -, - - -,
Reclassifications −  ,  -, -
Acquisition cost December 31 , , , , , ,
Accumulated depreciation and impairment
losses January 1 − -, -, - - -,
Exchange dierence − - -, - -,
Decreases and disposals −  ,   ,
Depreciation for the reporting period − -, -, - − -,
Accumulated depreciation and impairment
losses December 31 − -, -, -, − -,
Carrying amount December 31 , , ,  , ,
Land
Buildings
and
constructions
Machinery
and
equipment
Other
tangible
assets
Advance
payments and
assets under
construction Total 
Acquisition cost January 1 , , , , , ,
Exchange dierence - -, -, - -,
Additions − − − − , ,
Capitalized borrowing costs − − − −  
Decreases and disposals − − -, − − -,
Reclassifications -  ,  -, −
Acquisition cost December 31 , , , , , ,
Accumulated depreciation and impairment
losses January 1 − -, -, - - -,
Exchange dierence − , ,  ,
Decreases and disposals − − , − − ,
Depreciation for the reporting period − -, -, - − -,
Accumulated depreciation and impairment
losses December 31 − -, -, - - -,
Carrying amount December 31 , , ,  , ,
117Suominen Annual Report 2021
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 
Carrying amount of production machinery
and equipment , ,
Contractual commitments to acquire property, plant and
equipment are presented in Note 36.
Accounting principles
Property, plant and equipment consist mainly of land,
buildings and structures as well as of machinery and
equipment. They are recognized in the statement of
financial position at their acquisition cost less cumulative
depreciation and impairment losses, if any. When an asset
consists of major components with dierent useful lives,
they are accounted for as separate items. Assets from
acquisition of a subsidiary are stated at their fair values at
the date of the acquisition.
When part of an asset in property, plant and equipment
is replaced, the cost of the replacement is capitalized and
the eventual remaining carrying amount of the replaced
asset is derecognized. Other subsequent expenditure
is capitalized only if the future economic benefits to
the company from the asset are enhanced. Ordinary
maintenance and repair charges are expensed as incurred.
Borrowing costs are capitalized as part of the acquisition
cost of property, plant and equipment if the assets are
qualifying assets as defined in IAS 23 Borrowing Costs.
Depreciation is recognized on a straight-line basis over
expected useful lives. Depreciation begins when the asset
is available for its intended use. Land is not depreciated
since it is deemed to have indefinite useful life.
Gains and losses from the sales and disposals of
property, plant and equipment are determined as a
dierence between the sales price and the carrying
amount of the asset and they are recognized as other
operating income or expenses.
Depreciation periods for property,
plant and equipment
Land no depreciation
Buildings and constructions 10–40 years
Machinery and equipment 4–20 years
Other tangible assets 3–5 years
Advance payments and
assets under construction no depreciation
Critical accounting estimates and judgements
If there is indication of impairment, the carrying amounts
of property, plant and equipment are compared with
their recoverable amounts. The recoverable amount is
the higher of fair value and value in use. Value in use is
calculated by discounting the future cash flows arising
from the the asset. If the recoverable amount of an asset
is lower than the carrying amount, an impairment loss
is recognized. Both the amounts and timing of the cash
flows are based on management estimates.
Useful lives of property, plant and equipment are based
on management’s best estimate of the period the asset is
expected to be available for use by Suominen. The actual
useful life can, however, dier from the expected useful
life resulting in adjustment of annual depreciation of the
asset or in recognizing of an impairment loss.
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NOTE 8 Right-of-use assets
EUR thousand
Right-of-use
land
Right-of-use
buildings
Right-of-use
machinery and
equipment
Right-of-use
oce spaces
Other right-of-
use assets Total
Acquisition cost January 1  , , ,  ,
Exchange dierence −    
Additions     
Decreases − − - - - -
Acquisition cost December 31  , , ,  ,
Accumulated depreciation and
impairment losses January 1 - -, -, - - -,
Exchange dierence − - - - - -
Decreases − −   
Depreciation for the reporting period - -, - - - -,
Accumulated depreciation and
impairment losses December 31 - -, -, - - -,
Carrying amount December 31  , ,   ,
Right-of-use
land
Right-of-use
buildings
Right-of-use
machinery and
equipment
Right-of-use
oce spaces
Other right-of-
use assets Total 
Acquisition cost January 1  , , , − ,
Exchange dierence − - - - − -
Additions ,    ,
Decreases − - - − − -
Acquisition cost December 31  , , ,  ,
Accumulated depreciation and
impairment losses January 1 - -, - - − -,
Exchange dierence −    
Decreases − −  − − 
Depreciation for the reporting period - -, - - - -,
Accumulated depreciation and
impairment losses December 31 - -, -, - - -,
Carrying amount December 31  , ,   ,
Suominen owns the majority of its production facilities
(ie. buildings and land) as well as all of its production lines.
The most significant lease contracts Suominen has consist
of the leased production facilities in Italy and Windsor
Locks, USA. In addition, part of the production facility in
Spain is leased. Other lease contracts are mainly lease
contracts of oces, smaller machinery and equipment,
such as forklifts and oce equipment, as well as leases of
vehicles.
Lease contracts are disclosed in Note 26.
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NOTE 10 Equity instruments
EUR thousand
At fair value through
profit or loss
Designated at fair value through
other comprehensive income Total
Carrying amount January 1   
Sale of equity instruments - − -
Carrying amount December 31 −  
At fair value through
profit or loss
Designated at fair value through
other comprehensive income Total 
Carrying amount January 1   
Change in fair value − - -
Carrying amount December 31   
Maze Oy were measured at fair value through profit
orloss.
Other equity instruments are designated to be
measured at fair value through other comprehensive
income as they are not material items in the consolidated
financial statements of Suominen.
If there is no active market for the equity instruiment
or if the securities are not listed, the Group measures
fair value with valuation techniques. If there is no asset-
specific data available from transactions between
independent parties, the fair values used for the asset is
for example the present value of discounted cash flows
arising from the asset or fair values other instruments
which are substantially identical than the asset.
NOTE 9 Group companies
Company Domicile Ownership,%
Owned by
parent company
Suominen Corporation Helsinki, Finland
Suominen Nonwovens Ltd. Nakkila, Finland % x
Mozzate Nonwovens S.r.l. Mozzate, Italy % x
Cressa Nonwovens S.r.l. Mozzate, Italy %
Alicante Nonwovens S.A.U. Alicante, Spain % x
Suominen US Holding, Inc. Delaware, USA % x
Bethune Nonwovens, Inc. Bethune, South Carolina, USA %
Green Bay Nonwovens, Inc. Green Bay, Wisconsin, USA %
Windsor Locks Nonwovens, Inc. Windsor Locks, Connecticut, USA %
Suominen Brasil Indústria e Comercio de Não-Tecidos Ltda. Paulínia, Brazil % x
Accounting principles
For investments in equity instruments, ie. shares, IFRS9
enables the entity to make an irrevocable election of
classification and measurement by equity instrument.
Suominen classified some of the investments in equity
instruments at fair value through profit or loss. With the
classification both the fair value changes and possible
gains and losses on disposal have been recognized in
profit or loss. Rest of the equity instruments are classified
at fair value through other comprehensive income, and
both the fair value changes and the possible gains and
losses on disposal are recognized in other comprehensive
income without subsequent recycling to profit or loss.
Equity instruments consist of unlisted shares. The shares
in Bright Maze Oy were sold in 2021. The shares in Bright
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NOTE 11 Inventories
EUR thousand
 
Inventories
Raw materials and consumables , ,
Work in progress , ,
Finished goods , ,
Advance payments for inventory  
Total inventories , ,
Write-down of inventory -, -,
Reversals of write-down of inventory , ,
Inventories recognized as expense during the period -, -,
Accounting principles
Cost of inventories is measured using the FIFO (first-in-
first-out) principle or weighted average cost. The value of
inventory includes all direct and indirect costs associated
with purchase. The cost of manufactured products
includes the cost of materials, direct labour and other
direct costs, including general manufacturing overheads.
The cost of inventories excludes sales, administration
and financing costs. Borrowing costs are not capitalized
ininventory.
Inventories are valued at the lower of cost and the
probable net realizable value. Net realizable value is the
estimated selling price in the ordinary course of business
less the estimated costs of completion and estimated
costs necessary to make the sale.
Obsolete items in inventories are written down.
Inventories recognized as expense during the period are
included in cost of goods sold in the statement of profit
orloss.
Critical accounting estimates and judgements
Measurement of inventories includes some management
estimates. Inventories are measured at lower of cost and
net realizable value. Net realizable value is used in testing
the recoverable amount of inventories in order to avoid
the inventories being carried in excess of the amount
expected to be realized from their sale or use.
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NOTE 12 Receivables
EUR thousand
 
Non-current receivables
Loan receivables − ,
Other non-current receivables  
Total non-current receivables  ,
Current receivables
Trade receivables , ,
Loan receivables − ,
Other current receivables , ,
Prepaid expenses and accrued income , ,
Total current receivables , ,
Ageing analysis of trade receivables and credit risk exposure
Trade receivables December 31, 2021
Past due
Current <  days – days – days >  days Total past due Total
Trade receivables , , ,  , , ,
Allowance for expected credit losses − − - -, -, -,
Carrying amount of
trade receivables , , ,   , ,
Trade receivables December 31, 2020
Past due
Current <  days – days – days >  days Total past due Total
Trade receivables , , ,  , , ,
Allowance for expected credit losses − − - - -, -, -,
Carrying amount of
trade receivables , , ,  - , ,
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Expected credit losses of trade receivables and changes in
the allowance for expected credit losses of trade receivables
 
Allowance for expected credit losses
January 1 -, -,
Exchange dierence - 
Realized  
Reversed  
Charge for the year - -
Allowance for expected credit
lossesDecember 31 -, -,
Expected credit losses of trade receivables
recognized during the period, net  -
Currency analysis of trade receivables
 
EUR , ,
USD , ,
BRL , ,
Other currencies − 
Total , ,
Prepaid expenses and accrued income consist mainly
of accruals of financial items and other accruals related
to expenses. Other receivables, both non-current and
current, include, among others, receivables related to
indirect taxes.
Prepaid expenses and accrued income related to
derivative instruments are disclosed in more detail in
Note21 of the consolidated financial statements.
Credit quality of other receivables is based on the
debtors’ payment history. Other receivables are not
past due nor impaired. The carrying amount of other
receivables equals the maximum exposure to credit risk.
Suominen has with a “selected supplier” status a Supply
Chain Financing Program with certain customers. In
accordance with the program, trade receivables are sold
so that the contractual rights to receive the cash flows
from the trade receivables cease.
Loan receivables
At the disposal of the Flexibles business in 2014 Suominen
Corporation granted two loans to Bright Maze Oy, the
acquiree: Vendor Loan Note and Subordinated Loan Note.
The loans and accrued interests were paid in full in 2021.
Accounting principles
Trade receivables
Trade receivables are measured under IFRS 9 at amortized
cost. The value of trade receivables depends on the
transaction price of sold goods. Transaction price is
measured in accordance with IFRS 15 Revenue from
Contracts with Customers. In defining the transaction
price, for example the variable considerations included
in the contracts, such as volume rebates, are taken into
account. This means that the transaction price can be
lower than the sales amount invoiced from the customer.
Suominen applies the practical expedient allowed by
IFRS 9 for credit losses arising from trade receivables and
uses a provision matrix in estimating the credit losses
based on historical experience on realized credit losses.
In accordance with the provision matrix, the credit losses
of trade receivables are based on lifetime expected credit
losses. Trade receivables are categorized based on days
past due as well as on risk characteristics of the customers
taking into account the customers’ capability to pay all
contractual amounts as agreed in the contracts. Risk
characteristics include, among others, the geographical
risk related to the customer, the payment behavior and
the financial position of the customer.
The expected credit losses on trade receivables are a
probability-weighted estimate of credit losses over the
expected life. Suominen’s realized credit losses have
historically been immaterial. There is, however, a risk that
some bad debt provisions made in 2021 and 2020 will
be realized credit losses due to the customers’ financial
diculties.
A large part of the trade receivables were at the end
of the reporting period from international customers
with high credit rating. These customers are capable
to pay their overdue receivables and the credit risk is
not considered to be significantly increased even if the
receivables were overdue for more than 30 days.
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If it has been estimated that the credit risk of other
overdue trade receivables has significantly increased,
expected credit losses have been recognized. In addition,
the overdue trade receivables are under collection
procedures or payment plans with the customers have
been made. Suominen also monitors continuously that
payment plans are followed.
Suominen monitors constantly the open balances of the
customers and takes action if payments are delayed. For
the vast majority of Suominen’s customers, the COVID-19
pandemic has had a positive or at worst neutral impact on
the demand for their products. Hence the customer credit
risks and Suominen’s expected credit losses arising from
trade receivables have not materially increased.
Critical accounting estimates and judgements
Measurement of trade receivables includes some
management estimates. If the management estimates
that the carrying amount of a trade receivable exceeds
its fair value, an estimate of the expected credit loss
isrecognized.
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NOTE 13 Financial assets
EUR thousand
Classification of financial assets
At fair value through
profit or loss At amortized cost
Designated
at fair value
through other
comprehensive
income Carrying amount Fair value
Equity instruments − −   
Trade receivables − , − , ,
Interest and other financial receivables −  −  
Derivative receivables − −
Cash and cash equivalents − , − , ,
Total December 31, 2021 ,  , ,
At fair value through
profit or loss At amortized cost
Designated
at fair value
through other
comprehensive
income Carrying amount Fair value
Equity instruments  −   
Loan receivables , , − , ,
Trade receivables − , − , ,
Interest and other financial receivables −  −  
Derivative receivables  − −  
Cash and cash equivalents − , − , ,
Total December 31, 2020 , ,  , ,
Accounting principles
Suominen has defined its business model for managing
financial assets and based on the model as well as the
characteristics of the financial assets, determined the
classification of the financial assets.
Trade day accounting is applied to regular purchases
and sales of financial assets. Financial assets are
derecognized when the rights to receive cash flows from
the assets have expired or have been transferred to an
external party and the Group has transferred substantially
all the risks and rewards related to the ownership of the
assets to an external party.
Financial assets at fair value through profit or loss
Certain loan receivables were under IFRS 9 financial assets
at fair value through profit or loss, as they, among other
things, included terms which are not basic terms for loan
receivables. These loan receivables were fully repaid
in2021.
Financial assets at fair value through profit or loss
included equity instruments, which were sold in 2021.
Derivative instruments, for which hedge accounting
is not applied, are recognized under IFRS 9 at fair value
through profit or loss. Disclosure information on derivative
instruments is presented in Note 21.
Gains or losses arising from changes in the fair value of
assets at fair value through profit or loss are recognized
in the statement of profit or loss either in other operative
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income and expenses or in financial items, depending on
the nature of the asset.
Financial assets at fair value through other
comprehensive income
Financial assets at fair value through other comprehensive
income include equity instruments. More information is
presented in Note 10.
Financial assets at amortized cost
Trade receivables at amortized cost are described in
Note12.
Cash and cash equivalents are measured under IFRS9
at amortized cost. Under IFRS 9 also cash and cash
equivalents are subject to credit loss assessment, and
credit losses are recognized based on either 12-month
expected credit losses, or if there has been a significant
increase in the credit risk related to the receivable, based
on lifetime expected credit losses. Based on the situation
at the end of the reporting period and taking into account
the counterparty credit risk related to deposits in banks,
there are no credit losses from cash and cash equivalents.
Cash and cash equivalents comprise cash. If bank
overdrafts are in use, they are included in current interest-
bearing liabilities.
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NOTE 14 Other comprehensive income
EUR thousand
2021 Exchange dierences
Fair value and
other reserves Retained earnings Total
Profit for the period − − , ,
Exchange dierences , − − ,
Income tax on exchange dierences - − − -
Defined benefit plans, remeasurements − −  
Defined benefit plans, remeasurement,
income taxes − − - -
Total comprehensive income , − , ,
2020 Exchange dierences
Fair value and
other reserves Retained earnings Total
Profit for the period − − , ,
Exchange dierences -, − − -,
Income tax on exchange dierences  − − 
Reclassified to profit or loss − - − -
Reclassified to profit or loss, income tax −  − 
Fair value changes of equity instruments − - − -
Defined benefit plans, remeasurements − − - -
Defined benefit plans, remeasurement,
income taxes − −
Total comprehensive income -, - , ,
Accounting principles – exchange dierences
The exchange dierences arising from translating the
statements of profit or loss, statements of comprehensive
income and statements of financial position into euro
using the dierent exchange rates are recognized as
other comprehensive income and included in equity in
cumulative exchange dierence. Exchange dierences
arising from the translation of the net investments in
foreign subsidiaries in non-euro area are also recognized
in other comprehensive income and included in equity in
cumulative exchange dierences.
Some loans granted to the subsidiaries are in substance
part of a net investment in the subsidiary, as settlement
of the loan is not likely to occur in the foreseeable future.
The exchange dierences arising from those loans are
recognized in other comprehensive income and in
exchange dierences in equity.
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NOTE 15 Information of Suominen
share
Share capital and number of shares
The registered share capital of Suominen Corporation
totals EUR 11,860,056. The number of Suominen’s
registered shares on December 31, 2021 was 58,259,219
shares.
Suominen has one series of shares. Each share has
one vote in the General Meeting of the shareholders
and all the shares have equal rights to dividend or other
distribution of equity. Suominen share has no nominal
value. Suominen Corporation shares are listed on Nasdaq
Helsinki Ltd.
Treasury shares
The treasury shares acquired by Suominen and the related
costs are presented as deductions of distributable equity.
In accordance with the Limited Liability Companies Act,
treasury shares do not entitle to shareholder rights, such
as right to receive dividend or other distribution of funds,
or right to attend a General Meeting.
At the end of the reporting period Suominen held
965,984 treasury shares. As a share-based payment plan
vested, in total 34,872 shares were transferred to the
participants of the plan in February. In accordance with
the resolution by the Annual General Meeting, 16,042
shares were transferred on May 31, 2021 to the members
of the Board of Directors as their remuneration payable
in shares. In accordance with the matching share-based
payment program, 9,352 shares were transferred to the
participants of the program in September.
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.
Suominen announced on November 1, 2021 that
it starts to repurchase own shares. The maximum
number of shares to be repurchased is 400,000
shares, corresponding to approximately 0.7% of the
total number of the company’s shares. The maximum
amount to be spent on the repurchases is EUR 2.5
million. The acquisition of treasury shares ends latest on
February28,2022
By December 31, 2021 Suominen had acquired in total
331,323 shares with the total consideration of EUR1.6
million. The average purchase price was EUR 4.95
pershare.
Trade day accounting is applied to acquisition of
treasury shares.
Share-based plans
The share-based incentive plans are described in Note32
of the consolidated financial statements.
Suominen has no option plans.
The share ownership of related parties in Suominen
is disclosed in Note 35 of the consolidated financial
statements.
Share trading and price
The number of Suominen Corporation shares traded
on Nasdaq Helsinki January 1–December 31, 2021 was
17,714,203 shares (12,937,753 shares), accounting for
30.8% (22.5%) of the average number of shares (excluding
treasury shares). The highest price was EUR6.41
(EUR5.36), the lowest EUR 4.25 (EUR 2.00) and the
volume-weighted average price EUR 5.48 (EUR 4.29). The
closing price at the end of reporting period was EUR 5.18
(EUR5.08). The market capitalization (excluding treasury
shares) was EUR 296.8 million on December 31, 2021
(EUR292.4million).
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Number of shares
Changes in number of shares
Number of shares January 1, 2020 ,,
Number of shares December 31, 2020 ,,
Number of shares December 31, 2021 ,,
Changes in treasury shares
Number of shares January 1, 2020 ,
Conveyance of treasury shares, reward for the Board of Directors -,
Conveyance of treasury shares, share-based plan -,
Number of shares December 31, 2020 ,
Conveyance of treasury shares, reward for the Board of Directors -,
Conveyance of treasury shares, share-based plans -,
Transfer of shares in the joint account to treasury shares ,
Acquisition of treasury shares ,
Number of shares December 31, 2021 ,
Number of shares December ,  December , 
Number of shares excluding treasury shares ,, , ,
Share-issue adjusted number of shares excluding treasury shares ,, , ,
Average number of shares excluding treasury shares ,, , ,
Average share-issue adjusted number of shares excluding treasury shares ,, ,,
Average diluted share-issue adjusted number of shares excluding treasury shares ,, ,,
Notifications in 2021 under Chapter 9, Sections
5 and 6 of the Securities Market Act
Suominen Corporation received a notification onJanuary
15, 2021referred to Chapter 9, Section 5 and 6 of the
Securities Market Act. According to the notification,
the shareholding of companies controlled by Mr.Erkki
EtolainSuominen Corporationhad crossed the 15%
flagging threshold.
Suominen Corporation received a notification
onJanuary 18, 2021referred to Chapter 9, Section 5 and 6
of the Securities Market Act. According to the notification,
the shareholding of EloMutual Pension Insurance
Company inSuominen Corporationhad fallen under the
5% flagging threshold
Suominen Corporationreceived a notification
onApril16, 2021referred to in Chapter 9, Section 5 and 6
of the Securities Market Act. According to the notification,
the shareholding of Bolero Holdings SARL inSuominen
Corporationhad fallen below the 5% flagging threshold.
Suominen Corporation received a notification onApril
29, 2021referred to Chapter 9, Section 5 and 6 of the
Securities Market Act. According to the notification,
the shareholding ofNordea Funds LtdinSuominen
Corporationhad exceeded the threshold of 5%.
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Largest shareholders December 31, 2021
Shareholder Number of shares % of shares and votes
Ahlstrom Capital B.V. ,, .%
Oy Etra Invest Ab ,, .%
Nordea Nordic Small Cap Fund ,, .%
Ilmarinen Mutual Pension Insurance Company ,, .%
Etola Group Oy ,, .%
Nordea Life Assurance Finland Ltd ,, .%
Mandatum Life Insurance Company ,, .%
Pension Insurance Company Elo ,, .%
Varma Mutual Pension Insurance Company ,, .%
OP Life Assurance Company Ltd ,, .%
Oy H. Kuningas & Co. AB ,, .%
Skandinaviska Enskilda Banken AB (publ.) ,, .%
Mikko Maijala , .%
Juhani Maijala , .%
Laakkosen Arvopaperi Oy , .%
15 largest total ,, .%
Other shareholders ,, .%
Nominee registered ,, .%
Treasury shares* , .%
Total ,, .%
* The dierence to the disclosed number of treasury shares is due to the fact that Suominen applies trade day accounting to acquisition of treasury shares.
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Ownership distribution December 31, 2021
Number of
shareholders % of total Number of shares % of shares and votes
Corporations  .% ,, .%
Financial and insurance corporations  .% ,, .%
General government .% ,, .%
Non-profit institutions  .% , .%
Households , .% ,, .%
Foreign countries  .% ,, .%
Total , .% ,, .%
Nominee registered  ,, .%
Treasury shares* , .%
Total , ,, .%
Shareholders by share ownership December 31, 2021
Number of shares
Number of
shareholders % of total Number of shares % of shares and votes
1–100 , .% , .%
101–500 , .% , .%
501–1,000  .% , .%
1,001–5,000  .% ,, .%
5,001–10,000  .% , .%
10,001–50,000  .% , , .%
50,001–100,000  .% , .%
100,001–500,000  .% ,, .%
more than 500,000  .% ,, .%
Total , .% ,, .%
Treasury shares* , .%
Total , ,, .%
* The dierence to the disclosed number of treasury shares is due to the fact that Suominen applies trade day accounting to acquisition of treasury shares.
131Suominen Annual Report 2021
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NOTE 16 Interest-bearing liabilities
EUR thousand
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.
The lenders for the facility are Danske Bank
A/S,FinlandBranch and Nordea. The credit facility
includes leverage ratio and gearing as financial covenants.
The margin of the facility will increase or decrease
dependent onSuominenmeeting two sustainability key
performance indicators, namely increase in the sales of
sustainable products and reduction of greenhouse gas
emissions. The credit facility has floating interest rates.
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 oering was allocated to 19 investors. The bond is
listed on the ocial list of Nasdaq Helsinki Ltd.
The unsecured bond with a nominal value of EUR 85
million issued in September 2017 carries a fixed annual
interest of 2.50% and it matures on October 3, 2022. The
bond is listed on Nasdaq Helsinki Ltd.
The bonds constitute a direct and unsecured obligation
of Suominen and they are guaranteed as for own debt by
certain subsidiaries of Suominen Corporation.
 
Carrying
amount Fair value
Nominal
value
Carrying
amount Fair value
Nominal
value
Non-current interest-bearing liabilities
Debentures , , , , , ,
Lease liabilities , , , , , ,
Total , , , , , ,
Current interest-bearing liabilities
Debentures , , , − − −
Lease liabilities , , , , , ,
Total , , , , , ,
Total , , , , , ,
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.
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Change in interest-bearing liabilities
 
Total interest-bearing liabilities at the beginning of the period , ,
Current liabilities at the beginning of the period , ,
Repayment of current liabilities, cash flow items -, -,
Drawdown of current liabilities, cash flow items − ,
Increases in current liabilities, non-cash flow items  
Decreases of current liabilities, non-cash flow items - -
Reclassification from non-current liabilities , ,
Periodization of debenture to amortized cost, non-cash flow items  −
Exchange rate dierence, non-cash flow item  -
Current liabilities at the end of the period , ,
Non-current liabilities at the beginning of the period , ,
Increases in non-current liabilities, non-cash flow items  ,
Decreases of non-current liabilities, non-cash flow items - -
Reclassification to current liabilities -, -,
Exchange rate dierence, non-cash flow item  -
Non-current liabilities at the end of the period , ,
Non-current debentures at the beginning of the period , ,
Periodization of debenture to amortized cost, non-cash flow items , ,
Drawdown of debentures , −
Transaction costs of debentures, cash flow item - −
Reclassification to current liabilities -, −
Non-current debentures at the end of the period , ,
Total interest-bearing liabilities at the end of the period , ,
Maturity of interest-bearing liabilities
2022 (2021) , ,
2023 (2022) , ,
2024 (2023) , ,
2025 (2024) , ,
2026− (2025−) , ,
Total , ,
Interest-bearing liabilities by currency
EUR , ,
USD , ,
BRL  
Total , ,
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Accounting principles
Listed debentures are recognized at amortized cost using
the eective interest method. The fair value of a listed
debenture is measured using the market price at the end
of the reporting period.
Fees paid on loan facilities are recognized as transaction
costs of the loan to the extent that it is probable that
the facility will be drawn down. In this case, the fee is
recognized in the statement of financial position until the
draw-down of the loan occurs, and it is recognized in
profit or loss over the loan period. If it is not probable that
the loan facility will be utilized, the fee will be immediately
recognized in profit or loss.
Lease liabilities are disclosed in Note 26.
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NOTE 17 Classification of financial liabilities
EUR thousand
At amortized
cost
Carrying
amount Fair value Nominal value
Debentures , , , ,
Lease liabilities , , , ,
Interest accruals    
Other current liabilities    
Derivative liabilities    
Trade payables , , , ,
Total December 31, 2021 , , , ,
At amortized
cost
Carrying
amount Fair value Nominal value
Debentures , , , ,
Lease liabilities , , , ,
Interest accruals    
Other current liabilities    
Derivative liabilities
Trade payables , , , ,
Total December 31, 2020 , , , ,
Accounting principles
Financial liabilities are classified as current liabilities
if they mature within 12 months from the end of the
reportingperiod.
A financial liability or a part of a financial liability is
removed from the statement of financial position when
the liability is extinguished, i.e. when the obligation
specified in the contract is discharged or cancelled
orexpired.
Derivative instruments are presented in Note 21 of the
consolidated financial statements.
Interest-bearing liabilities, including lease liabilities,
are described in Note 16 of the consolidated financial
statements.
Trade payables
Trade payables are measured at amortized cost. The
carrying amount of trade payables equals to fair value
based on their short maturity.
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NOTE 18 Defined benefit plans
EUR thousand
Suominen has a defined benefit termination plan in Italy
(TFR, Trattamento di Fine Rapporto). The plan is unfunded
and closed for new entrants. The benefits paid are based,
among other things, on service years and end salary of
the participants. The obligation is determined based on
calculation made by independent actuaries.
 
Defined benefit liabilities in the statement of financial position
Present value of unfunded obligations  
Deficit  
Change in defined benefit obligation
Present value of defined benefit obligation January 1  
Charged to profit or loss:
Interest expenses
Total recognized in profit or loss (gain - / loss +)
Remeasurements:
Actuarial gain (-) / loss (+) from change in financial assumptions - 
Total remeasurments - 
Benefits paid - -
Present value of defined benefit obligation December 31  
Changes in plan assets
Plan assets January 1 − −
Employer contributions  
Benefits paid - -
Plan assets December 31 − −
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 
Significant actuarial assumptions
Discount rate (%) . .
Rate of future price inflation (%) . .
Sensitivity analysis of actuarial assumptions
Decrease in discount rate by 0.25 percentage points
Eect on defined benefit obligation  
Increase in discount rate by 0.25 percentage points
Eect on defined benefit obligation - -
Expected payments to plan participants in the future years from the defined benefit obligation
2022 (2021)  
2023 (2022)  
2024 (2023)  
2025 (2024)  
2026 (2025)  
2027−2031 (2026−2030)  
Total  
Accounting principles
The defined benefit obligations are measured as the
present value of the estimated future cash flows using
interest rates of government securities that have maturity
terms approximating the terms of related liabilities
or similar long-term interests. Plan assets, if any, are
recognized at fair value at the end of the reporting period.
For the defined benefit plans, costs are assessed using
the projected unit credit method. Under this method the
cost is charged to profit or loss so as to spread over the
service lives of employees. However, there are normally
no other costs than the net interest arising from the
defined benefit plan of Suominen in Italy.
Only past service costs due to plan amendments as
well as net interest on net defined benefit liability can
be recognized in profit or loss. Service costs, if any, are
recognized in profit or loss as employee benefits and net
interest in financial items. Remeasurements of net defined
benefit liability, such as actuarial gains and losses, are
recognized in other comprehensive income in the period
in which they occur with no subsequent recycling to profit
or loss.
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NOTE 19 Provisions
EUR thousand
Non-current provisions
Restoration provisions Income tax provisions Other provisions Total
January 1, 2020 , − − ,
Exchange dierence - − − -
Additions −   
Eect of lease modifications - − − -
Eect of discounting  − − 
December 31, 2020 ,   ,
Exchange dierence  − − 
Eect of discounting  − − 
December 31, 2021 ,   ,
Current provisions
Other provisions
January 1, 2020 −
Additions 
December 31, 2020 
Decreases -
December 31, 2021 −
The provisions of Suominen consist of the obligations
to restore the leased premises at the end of the lease
contracts (Note 26), income tax provisions made as a
result of tax audits and litigation provisions.
Accounting principles
A provision is recognized when there is a present legal
or constructive obligation arising from past events
and it is probable, that the fulfillment of the obligation
requires payment and generates outflow of economic
benefits from the company, and when the amount of
the obligation can be measured reliably. Provisions are
recognized as liabilities in the statement of financial
position. The amount recognized as a provision is the best
estimate of the expenditure required to settle the present
obligation at the end of the reporting period. If the time
value of money is material, provisions are discounted.
A restructuring provision is recognized only when a
detailed and fully compliant plan has been prepared for it
and the implementation of the plan has been started or
a notification of it has been made known to those whom
the arrangement concerns.
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NOTE 20 Trade payables and
other liabilities
EUR thousand
 
Other non-current liabilities
Accrued expenses and deferred income 
Total other non-current liabilities 
Current liabilities
Trade payables , ,
Advances received  
Other liabilities , ,
Accrued expenses and deferred income , ,
Total trade payables and other current
liabilities , ,
Currency analysis of trade payables
 
EUR , ,
USD , ,
BRL  
Other currencies 
Total , ,
Accrued expenses and deferred income include, among
others, accrued interest expenses, accrued personnel
expenses and other accruals for expenses.
Other liabilities include, among others, liabilities from
indirect taxes.
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Accounting principles
Derivatives are initially recognized at fair value on the date
a derivative contract is entered into and are subsequently
remeasured at fair value. The method of recognizing the
resulting gain or loss depends on whether the derivative
is designated as a hedging instrument, and if so, on the
nature of the item being hedged. Suominen can designate
derivatives as hedges of a particular risk associated
with a recognized asset or liability or a highly probable
forecasted transaction (cash flow hedge).
Fair values for currency forward contracts are
determined by using the spot rates and relevant swap
points based on interest rate dierences at the end of the
reporting period.
NOTE 21 Derivative instruments
EUR thousand
Nominal and fair values of derivative contracts
 
Nominal
value
Fair value,
net
Fair value,
positive
Fair value,
negative
Nominal
value
Fair value,
net
Fair value,
positive
Fair value,
negative
Currency forward contracts
Hedge accounting not applied , - - ,   -
Derivative receivables and liabilities in statement
of financial position
 
Receivables
Derivatives, hedge accounting not applied 
Liabilities
Derivatives, hedge accounting not applied 
The fair values of derivatives are recognized in the
statement of financial position as gross amounts and they
can be oset with each other only in case of breach of
contractual terms or bankruptcy. If oset, the derivative
liabilities to counterparties would be EUR 14 thousand.
Derivative instruments in profit or loss
 
Cost of goods sold
Currency derivatives, hedge accounting not applied − -
Other operating expenses
Currency derivatives, hedge accounting not applied - 
Net financial expenses
Interest rate dierences of currency derivatives - -
Derivative instruments at fair value through profit
orloss
Most of the Group’s derivative transactions, while
providing economic hedges, do not qualify for hedge
accounting under IFRS 9, and therefore changes in the
fair values of these derivative instruments are recognized
immediately in profit or loss.
Hedge accounting
Suominen has not applied hedge accounting in 2021
or2020.
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NOTE 22 Fair value hierarchy
EUR thousand
Fair value hierarchy in 2021
Financial assets at fair value Level  Level  Level 
Equity instruments − − 
Currency derivatives − −
Total in 2021 − 
Financial liabilities at fair value Level  Level  Level 
Currency derivatives −  −
Total in 2021 −  −
Fair value hierarchy in 2020
Financial assets at fair value Level  Level  Level 
Equity instruments − − 
Loan receivables − − ,
Currency derivatives −  −
Total in 2020 −  ,
Financial liabilities at fair value Level  Level  Level 
Currency derivatives − −
Total in 2020 − −
Fair value changes in Level 3
Financial assets at fair value
Total January 1, 2020 ,
Recognized in profit or loss
Interest income 
Impairment loss -
Recognized in other comprehensive income
Impairment loss -
Total December 31, 2020 ,
Recognized in profit or loss
Interest income 
Reversal of impairment loss ,
Sale of equity instruments -
Repayment of loan receivables and interests -,
Total December 31, 2021 
Items recognized in profit or loss have been recognized in
financial items.
There were no transfers in the fair value measurement
hierachy levels during the reporting periods.
Fair values in Level 1 are based on quoted prices
(unadjusted) in active markets for identifical assets or
liabilities.
The fair value for financial instruments that are not
traded in an active market is determined by using
valuation techniques. These valuation techniques
maximize the use of observable market data where it is
applicable and rely as little as possible on entity specific
estimates. If all significant inputs required to measure the
fair value of an instrument are observable, the instrument
is included in Level 2.
Fair values for currency forward contracts are
determined by using the spot rates and relevant swap
points based on interest rate dierences at the end of the
reporting period.
The fair values of financial instruments on Level 3
are based on related inputs, which are not based on
observable market information but significantly on
management estimates which are used in generally
accepted valuation methods.
If there is no asset-specific data available from
transactions between independent parties, the fair values
used for the equity instrument is for example the present
value of discounted cash flows arising from the asset
or fair values other instruments which are substantially
identical than the asset.
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NOTE 23 Revenue from contracts
with customers
EUR thousand
The net sales of Suominen Group consist entirely of sales
of nonwovens. In 2021, sales to two (two) customers
exceeded each 10% of total net sales. Net sales to these
two customers amounted to EUR 89.9 million (84.9) and
EUR 70.0 million (74.4).
Other operating income is presented in Note 25.
 
Net sales by geographical destination
Finland , ,
Rest of Europe , ,
Americas , ,
Rest of the world , ,
Total , ,
Net sales by business area
Europe , ,
Americas , ,
Unallocated exchange dierences of sales
and internal sales - -
Total , ,
Accounting principles
Suominen applies IFRS 15 Revenue from Contracts with
Customers in revenue recognition. Net sales include the
total invoicing value of products less sales tax, discounts
and rebates. Foreign exchange dierences arising from
trade receivables are recognized as sales adjustments.
The goods Suominen sells are nonwoven rolls. The
customer can benefit from each nonwoven roll either on
its own or together with other resources readily available
to the customer. The delivered goods have been identified
in the contracts Suominen has made with the customer
(for example the quality and measurements of the product
have been defined). The contracts often define the target
for quantities to be delivered, but the customer is not
committed to the quantities. The supplied quantities
are based on the customer’s purchase orders and each
supplied quantity is invoiced separately.
The performance obligation is satisfied when the goods
have been delivered to the customer, ie. the performance
obligation is satisfied at a point of time. In most cases
the goods are handed over to the customer when the
goods leave the production plant. If, in accordance with
the terms of delivery, the risks and rewards of ownership
of the goods as well as control over the goods are
transferred to the customer only when the goods have
been delivered to the customer, revenue is recognized
only when the customer has received the goods.
The payment terms and times dier depending on the
customer. The applied payment term and the length of
the payment time are aected by, among other things, the
credit risk and prior payment behavior of the customer.
In addition, the geographical location of the invoicing
production plant as well of the customer have an eect
on the payment terms. Suominen has preferred payment
terms defined in the credit policy, but for commercial
reasons it is possible to deviate from these payment terms.
For the most part trade receivables are due within 30–90
days from the invoicing date.
There are no significant financing components in the
transaction prices and the considerations are paid in cash.
Some of the customer contracts include a definition of
a rebate, which is granted to the customer if the delivered
quantities exceed the predefined level, i.e. in these cases
the transaction price includes a variable consideration.
The eect of the variable consideration on the transaction
price is taken into account in revenue recognition by
estimating the probability of the realization of the rebate
for each contract. The estimation is based on the most
likely amount. When estimating the probability, Suominen
takes into account the historical information of the
customer (such as whether the deliveries in the past have
reached the level which entitles the customer to receive
the rebate), the current situation at the time of the delivery
of the goods as well as forecasts on future deliveries.
The uncertainty inherent in estimating the variable
consideration is considered to be so immaterial that the
variable consideration has not been constrained. The
estimated transaction price is reassessed latest at the end
of each reporting period.
The receivable from the customer is recognized at
the transaction price. This means in practice that both
the invoiced trade receivable from the customer and
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NOTE 24 Entity-wide disclosures
EUR thousand
Property, plant and equipment, intangible assets and
right-of-use assets by geographical location
 
Finland , ,
Rest of Europe , ,
Americas , ,
Total , ,
Net sales by geographical destination as well as net sales
by business area are presented in Note 23.
recognized revenue are adjusted in accounting with an
accrual based on the estimated rebate amount.
In some of the customer contracts the transaction price
of the goods is tied to the raw material costs of Suominen.
The eect of the raw material prices on transaction prices
is, however, applied only to future transaction prices and
they do not aect the prices of already delivered goods.
As the delivered quantities are distinct performance
obligations, raw material clauses are not applied
retrospectively.
Sales prices are defined in the customer contracts
separately for each product. The price for each customer
is based on, among other things, quantities, transaction
currency and the geographical location of the customer.
Variable considerations (rebates) are allocated to the
performance obligations which are included in the
contract, unless otherwise agreed in the contract. In these
cases the variable considerations are allocated only to
those performance obligations they relate to.
Suominen has no material incremental costs of
obtaining a contract which would fulfill the capitalization
criteria. Any incremental costs are recognized as expense
when incurred, as the amortization period of such
capitalized incremental costs would be one year or less.
Suominen has no such costs to fulfill a contract which
would fulfill the capitalization criteria of IFRS 15.95–97.
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NOTE 25 Other operating
income and expenses
EUR thousand
Other operating income  
Gains from disposal of intangible assets
and property, plant and equipment 
Gains from changes in leases
Indemnities received and insurance
compensations  
Rental income  
Sales of recycled products , ,
Government and other grants  
Other operating income  
Total , ,
Recycled products consist of waste generated in the
manufacturing process as well as products which do not
fulfill quality requirements. These products are sold for
recycling.
Other operating expenses  
Expected credit losses of trade receivables
during the period, net  -
Currency derivatives, hedge accounting
not applied, net - 
Indemnities and reversals of indemnity
accruals , -,
Other operating expenses - -
Total  -,
Accounting principles
Gains from the disposal of property, plant and equipment
and intangible assets, insurance compensations and
government and other grants as well as revenues other
than from product sales, such as rental income (Note
26) and proceeds from sale of recycled products, are
recognized as other operating income. Also gains
arising from changes in leases are recognized as other
operatingincome.
Losses from the sales of assets, expected credit losses
of trade receivables as well other expenses not associated
with ordinary operations are recognized as other operating
expenses. Also losses arising from changes in leases
contracts are recognized as other operating income.
NOTE 26 Leases
EUR thousand
Suominen owns the majority of its production facilities
(ie. buildings and land) as well as all of its production lines.
The most significant lease contracts Suominen has consist
of the leased production facilities in Italy and Windsor
Locks, USA. In addition, part of the production facility in
Spain is leased. Other lease contracts are mainly lease
contracts of oces, smaller machinery and equipment,
such as forklifts and oce equipment, as well as leases
ofvehicles.
Suominen acts also as a lessor to a minor extent in
some of its production facilities where it leases parts
of the real estates it owns. These lease contracts are
classified as operating leases as they do not transfer
substantially all the risks and rewards incidental to
ownership of the underlying assets to the lessees. The
lease payments received from these lease contracts are
recognized as other operating income on a straight-line
basis in accordance with the terms of the lease contracts
(Note 25).
Suominen has not received COVID-19 related rent
concessions.
Income and expenses in the statement
of profit or loss arising from leases  
Depreciation expense of right-of-use
assets (Note 8) -, -,
Rental expenses relating to short-term
leases - -
Rental expenses relating to leases of low
value assets - -
Expenses arising from non-lease
components of the leasing contracts
and non-deductible indirect taxes - -
Gains and losses arising from lease
modifications, net
Rental income  
Total in operating profit -, -,
Interest expenses on lease liabilities
(Note 30) -, -
Interest expenses on provisions related
to leasing contracts (Note 30) - -
Total income and expenses -, -,
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Cash outflow for leases  
Paid interest expenses on lease liabilities -, -
Repayment of finance lease liabilities -, -,
Rental expenses - -
Total cash outflow for leases -, -,
Minimum lease payments under non-
cancellable operating leases in future periods
Within one year  
Between 1−5 years  
After 5 years − −
Total  
Commitments to leases not yet commenced are disclosed
in Note 36.
Minimum non-cancellable lease payments
(rental income) in future periods
Within one year  
Between 1−2 years  
Between 2−3 years  −
Between 3−4 years − −
Between 4−5 years − −
After 5 years − −
Total  
Accounting principles
If a contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration, the contract is or contains a lease.
Suominen assesses at each contract inception whether
a contract is or contains a lease. If the contract is a lease,
Suominen, as a lessee, recognizes in accordance with
IFRS 16 Leases the right-of-use assets (Note 8) and lease
liabilities (Note 16) for the rights and obligations created
by leases.
Suominen applies the recognition exemptions allowed
by IFRS 16. This means that low value asset leases are
recognized as rental expenses on straight-line basis in the
statement of profit or loss. Based on the standard as well
as the materiality principle, Suominen has defined that
an asset is of low value if its value as new is EUR 5,000 or
less. Such assets are for example computers and other
smaller oce equipment.
The recognition exemptions allow also that leases,
where the lease term is initially 12 months or less and the
leases do not contain purchase options, are recognized as
rental expenses on straight-line basis in the statement of
profit or loss. The election for short-term leases has to be
made by the class of the underlying asset. In Suominen,
for example leases of temporary warehouses as well
as short-term leases of machinery and equipment and
vehicles are included in short-term leases.
In addition, the lease and non-lease components are
not separated for all asset classes, such as vehicles and
forklifts.
Gains arising from modifications in lease contracts are
recognized as other operating income and losses as other
operating expenses (Note 25).
Lease liabilities
At the commencement date of a lease, Suominen
recognizes a lease liability measured at the present value
of the lease payments to be made over the lease term.
The lease payments include fixed payments less any
lease incentives receivable, variable lease payments that
depend on an index or rate and amounts expected to be
paid under residual value guarantees. If the lease contract
contains a purchase option and it is reasonable certain
that the option will be exercised, the exercise price is
included in the lease payments. Also, if it is reasonable
certain that the lease will be terminated, the termination
penalties are included in the lease payments.
In calculating the present value of the lease liabilities,
Suominen uses either the interest rate implicit in the
lease or, if that is not easily attainable, the incremental
borrowing rate at the commencement date of the lease.
The majority of the lease liabilities are calculated with the
incremental borrowing rate, defined separately for each
group company taking into account the geographical
location and credit worthiness of each company.
After the commencement date, the carrying amount of
lease liabilities is reduced for the lease payments made
and increased to reflect interest on the lease liability.
In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the
lease term, a change in the lease payments, such as a
change to future payments resulting from a change in
an index or rate used to determine the lease payments
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or a change in the assessment of an option to purchase
theasset.
Part of the Group’s lease contracts continue with a
new lease term unless the contract is terminated during
the termination period defined in the contract. As both
the lessee and the lessor have a right to terminate the
contract without the other party’s consent and without
sanctions, the recognized lease terms of these contracts
do not include the use of the option to extend the lease.
In addition, there are some lease contracts which include
options to extend the lease, but it is unlikely that these
options are exercised. The lease period taken into account
of these lease contract is the initial lease term excluding
the use of the option.
The lease contracts of all Suominen’s leased production
facilities include either an option to extend the lease or
they continue automatically, if they are not terminated
during the termination period. If neither of the contract
parties has terminated the contract during the termination
period, Suominen redefines the remaining lease period.
When the lease contract includes variable lease
payments based on an index, the lease liability is initially
measured using the index at the commencement date
of the lease. The lease liabilities arising from these lease
contracts are remeasured when the lease payments
change due to the change in the index.
Right-of-use assets
Suominen recognizes right-of-use assets at the
commencement date of the lease. Right-of-use assets
are subsequently measured at cost, less cumulative
depreciation and impairment losses, and are adjusted
for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities
initially recognized, initial direct cost incurred, and lease
payment made before the commencement date less any
lease incentives received.
Some of the lease contracts of the production facilities
include an obligation to restore the underlying asset to
the condition required by the terms and conditions of
the lease. These restoration obligations (Note 19) are
recognized as provisions in the statement of financial
position and the initial amount is included in the cost of
the right-of-use asset.
Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated
useful lives of the assets. If the ownership of the leased
asset transfers to Suominen at the end of the lease
or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful
life of the asset. The right-of-use assets are also subject
toimpairment.
Critical accounting estimates and judgements
The carrying amounts of the right-of-use assets and lease
liabilities depend on, among other things, the length
of the leasing contracts as well as the potential options
and possibilities to lengthen or shorten the lease term.
The carrying amounts are especially aected with the
estimates made of the lease terms and possible renewals
of the lease agreements of the production facilities.
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NOTE 27 Fees paid to auditors
EUR thousand
NOTE 28 Employee benefits
EUR thousand
Fees paid to auditors are included in administration
expenses.
Ernst & Young Oy has been acting as the principal
auditor of the Group and the parent company since the
Annual General Meeting of 2015.
Fees paid to auditors  
Fees for statutory audit - -
Other services - -
Total - -
The fees paid by the parent company of the Group,
Suominen Corporation, are presented below.
Fees paid to auditors, Suominen Corporation  
Fees for statutory audit - -
Other services - -
Total - -
 
Wages and salaries -, -,
Share-based payments -, -,
Pensions, defined contribution plans -, -,
Other personnel expenses -, -,
Total -, -,
Average number of personnel (FTE – full
time equivalent)  
Number of personnel, end of reporting
period (FTE – full time equivalent)  
in Finland  
Management remuneration is disclosed in detail in
Note35 of the consolidated financial statements.
Share-based payments are disclosed in more detail in
Note 32 of the consolidated financial statements.
Defined benefit plans are disclosed in more detail in
Note 18 of the consolidated financial statements.
Accounting principles – pension benefits
The Group has several pension plans in accordance with
local conditions and practices in the countries where
it operates. The plans are generally funded through
premium payments to insurance companies or similar
entities. The pension schemes are in accordance with
local legislation and based on established local practices.
Pension schemes may include additional pension
benefits, options for early retirement, or compensation
fordisability.
Pension schemes are classified either as defined
contribution pension plans or defined benefit pension
plans. A defined contribution pension plan is a plan
under which the Group pays fixed contributions into
a separate entity and has no obligation to pay further
contributions if the separate entity has no sucient assets
to pay all employee benefits. The contributions to defined
contribution plans are charged to profit or loss in the
period to which the contributions relate.
Suominen has a defined benefit termination plan in Italy
(TFR) (Note 18). In other countries Suominen has defined
contribution pension plans.
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NOTE 29 Depreciation and amortization
EUR thousand
 
Depreciation and amortization by function
Cost of goods sold -, -,
Sales, marketing and administration expenses -, -,
Research and development - -
Total -, -,
Depreciation and amortization by asset category
Intangible rights -, -,
Other intangible assets - -
Buildings and constructions -, -,
Machinery and equipment -, -,
Other tangible assets - -
Right-of-use assets -, -,
Total -, -,
Accounting principles
The amortization of intangible assets is described in
Note6, the depreciation of property, plant and equipment
in Note 7 and the depreciation of right-of-use assets in
Note 8.
The carrying amounts of property, plant and equipment
as well as of intangible assets are assessed to determine
whether there are any indications that the carrying
amounts of the assets exceed their recoverable amounts
and an impairment loss should be recognized. Indications
of the assets’ possible impairment can be a significant
decline in an asset’s market value, adverse changes in the
business environment, adverse changes in the extent to
which or manner in which an asset is used or expected to
be used, or a deterioration in financial performance below
what was expected.
If such indications of impairment exist, the recoverable
amounts are measured for those assets for which there
are indications of impairment. Recoverable amount is the
higher of fair value of the asset less costs of disposal and
value in use. When measuring an asset’s value in use, the
future cash flows derived from the asset are discounted
by using discount rates which reflect the average cost of
capital before taxes of the asset or, if the asset belongs to
a cash generating unit, of that cash generating unit. The
risk inherent in the value in use is captured by analyzing
variations in the amount or timing of cash flows.
An impairment loss of an asset can be reversed if a
positive change in the estimates of the recoverable
amount has occured. The impairment loss made in
prior years is reversed no more than up to the value
which would have been determined for the asset, net of
amortization or depreciation, had no impairment loss
been recognized in prior years.
Impairment testing of goodwill is presented in Note 5.
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NOTE 30 Financial income and expenses
EUR thousand
 
Financial income
Interest income from receivables at
amortized cost  
Interest income from receivables at fair value
through profit or loss*  
Other interest income  
Currency derivatives, interest rate dierence 
Fair value change − 
Gains from sale of equity instruments
measured at fair value through profit or loss , −
Total , ,
Financial expenses
Interest expenses on liabilities at amortized
cost -, -,
Interest expenses on lease liabilities -, -
Interest expenses on defined benefit plans - -
Interest expenses on discounted provisions - -
Other interest expenses - -
Currency derivatives, interest rate dierence - -
Financial expenses on sale of trade
receivables - -
Other financial expenses - -,
Total -, -,
Gains and losses from receivables at fair
value through profit or loss
Impairment losses and reversals of
impairment losses* , -
Total , -
Net exchange rate dierences , -
Total financial income and expenses - -,
* From loan receivables, that were mandatorily measured at fair value through profit or
loss in accordance with IFRS 9.
Currency dierences in operating profit  
Net sales  -
Cost of goods sold - 
Other operating income and expenses - 
Accounting principles
Accounting of transactions in foreign currencies is
described in Note 1.
Interest expenses are accrued for and mainly
recognized in profit or loss for each period. If an asset is
a qualifying asset as defined in IAS 23 Borrowing Costs,
the borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying
asset are capitalized to the acquisition cost of the asset.
The capitalization applies mainly to property, plant and
equipment and intangible assets.
Capitalized borrowing costs during the reporting period
were EUR 219 thousand (EUR 91 thousand). The average
capitalization rate used was 3.66%.
149Suominen Annual Report 2021
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NOTE 31 Income taxes
EUR thousand
 
Income tax charge in statement of profit or loss
Current income tax charge -, -,
Adjustments in respect of current income tax of previous years - ,
Change in deferred tax assets -, -
Change in deferred tax liabilities  -
Other income taxes  -
Total income tax charge -, -,
Income taxes recognized in other comprehensive income
Exchange dierences - 
Reclassified to profit or loss − 
Defined benefit plans, remeasurements -
Total taxes recognized in other comprehensive income - 
Corporate income taxes in 2020 were positively
impacted by the US tax reliefs as a result of the COVID-19
pandemic.
The Group companies have tax losses, totaling
EUR1.2million (EUR 11.1 million), which can be applied
against future taxable income. A deferred tax asset has
been recognized for all tax losses as the management
has estimated in preparing the 2021 financial statements
that Suominen is able to utilize the unused tax losses. In
addition, it will take several years before the tax losses
expire or there is no expiry date for the losses.
Deferred tax liability has not been recognized in 2021 or
2020 of the undistributed earnings of Finnish or foreign
subsidiaries, as the majority of such earnings can be
transferred to the owner without any tax consequences.
150 Suominen Annual Report 2021
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Accounting principles
The consolidated financial statements include current
taxes, which are based on the taxable results of the group
companies for the reporting period together with tax
adjustments for previous reporting periods, calculated
in accordance with the local tax rules, and the change in
deferred tax liabilities and assets.
Income taxes which relate to items recognized in other
comprehensive income are also recognized in other
comprehensive income.
Suominen has some uncertain tax positions due to
local tax audits as the tax authorities have challenged the
tax deductible expenses Suominen has declared in the
income tax returns. Suominen has assessed for each tax
audit whether the interpretations of the tax authorities
are justified and adjusted the recognized amounts, if
needed, in order to correspond the expected future
payments. Even though the management estimates that
the end results of the tax audits will not result in material
additional costs exceeding the already recognized
amounts, the actual results can dier from the estimates.
Suominen has some uncertain tax positions related
to previous years’ taxes and interpretations of tax
losses related to, among others, the possibility to utilize
confirmed tax losses. Should the final outcome dier
from the outcome estimated by Suominen, the estimated
possible additional costs at the end of the reporting
period would total to approximately EUR 0.5 million.
The Group’s deferred tax liabilities and assets have been
calculated for temporary dierences, which have been
obtained by comparing the carrying amount of each asset
or liability item with their tax bases. Deferred tax assets are
recognized for deductible temporary dierences and tax
losses to the extent that it is probable that taxable profit
will be available, against which tax credits and deductible
temporary dierences can be utilized. In calculating
deferred tax liabilities and assets, the tax rate used is the
tax rate in force at the time of preparing the financial
statements or which has been enacted by end of the
reporting period. Changes in tax rates have been taken
into account when calculating deferred taxes. Corporate
income tax rate in Finland is 20% (20%).
Reconciliation of income tax expense calculated at statutory tax rates
with income tax expense in the statement of profit or loss
 
Profit before income taxes , ,
Income taxes at the tax rate applicable to the parent -, -,
Dierence due to dierent tax rates of foreign subsidiaries -, -,
Tax exempt income and non-deductible expenses  
Deferred taxes recognized during the reporting period in respect of previous years' temporary dierences and
confirmed tax losses  ,
Deferred taxes reversed during the reporting period - -,
Adjustments in respect of current income tax of previous periods and witholding and other income taxes  ,
Use of losses, for which no deferred tax asset has been recognized − ,
Expenses deducted directly from income taxes  −
Income taxes in the statement of profit or loss -, -,
Eective tax rate, % . .
Tax assets and liabilities in the statement of financial position
Deferred tax assets , ,
Assets for current tax , 
Deferred tax liabilities , ,
Liabilities for current tax  
151Suominen Annual Report 2021
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Principal temporary dierences arise from depreciation
and amortization of property, plant and equipment and
intangible assets, defined benefit plans, recognition of
net assets of acquired companies at fair value, measuring
assets at fair value and confirmed tax losses.
IFRIC 23 Interpretation clarifies the accounting of
uncertainty in accounting for income taxes. Under
IFRIC 23 the key test is whether it is probable that
the tax authority will accept the company’s chosen
tax treatment. If it is probable that the tax authority
accepts the company’s chosen tax treatment in the tax
return, there is no uncertainty which would have to be
recognized in the financial statements. If it is not probable,
then the uncertainty is reflected in the measurement
of current or deferred tax. The uncertainty is reflected
in the measurement by using either the most likely
amount or the expected value, which ever predicts the
outcomebetter.
The judgements and estimates applied in estimating the
uncertainty over an income tax treatment are reassessed if
facts and circumstances change.
In accordance with the interpretation, the company has
to determine, whether to consider each tax treatment
separately or together with one or more other uncertain
tax treatments. The approach that better predicts the
resolution of the uncertainty in tax treatments has to
befollowed.
Critical accounting estimates and judgements
Recognition and measurement of deferred tax liabilities
and assets include management estimates, especially
in deferred tax assets arising from confirmed tax losses
of the group companies or from other temporary
dierences. Deferred tax assets are recognized for
deductible temporary dierences and tax losses to
the extent that it is probable that taxable profit will
be available against which tax credits and deductible
temporary dierences can be utilized. All tax liabilities and
assets are reviewed at the end of the reporting period and
changes are recognized in comprehensive income.
Group companies can be subjects of tax audits. In these
tax audits the tax authorities can challenge Suominen’s
view of the taxable income and not fully accept it. In these
cases the recognized amounts are adjusted, if needed, in
order to correspond the expected future payments. The
possible adjustments as well as the recognized income
tax liability are based on estimates of the outcome of the
taxaudit.
152 Suominen Annual Report 2021
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Reconciliation of deferred tax assets
January , 
Exchange
dierence
Recognized in
profit or loss
Recognized in other
comprehensive
income or in equity
Osetting
with deferred
tax liabilities
December ,

Employee benefits  −  - − 
Property, plant and equipment and
intangible assets  - − − 
Tax losses , − -, − − 
Other temporary dierences ,   - − ,
Total ,  -, - − ,
Osetting with deferred tax
liabilities -, - − −  -,
Total , - -, -  ,
January , 
Exchange
dierence
Recognized in
profit or loss
Recognized in other
comprehensive
income or in equity
Osetting
with deferred
tax liabilities
December ,

Employee benefits  −  − 
Property, plant and equipment and
intangible assets  - - − − 
Tax losses , - - − − ,
Other temporary dierences , -   − ,
Total , - -  − ,
Osetting with deferred tax
liabilities -,  − − , -,
Total , - -  , ,
Reconciliation of deferred tax liabilities
January , 
Exchange
dierence
Recognized in
profit or loss
Recognized in other
comprehensive
income or in equity
Osetting
with deferred
tax assets
December ,

Property, plant and equipment and
intangible assets ,   − − ,
Other temporary dierences ,  - − − ,
Total , ,  − − ,
Osetting with deferred tax assets -, - − −  -,
Total , ,  −  ,
January , 
Exchange
dierence
Recognized in
profit or loss
Recognized in other
comprehensive
income or in equity
Osetting
with deferred
tax assets
December ,

Property, plant and equipment and
intangible assets , -,  − − ,
Other temporary dierences , - - − − ,
Equity instruments  − − - − −
Total , -, - - − ,
Osetting with deferred tax assets -,  − − , -,
Total , -, - - , ,
153Suominen Annual Report 2021
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NOTE 32 Share-based payments
Suominen has share-based incentive plans targeted to
the key employees of the Group. In accordance with the
terms of the plans, shares of Suominen Corporation are
granted to the participants if vesting conditions are met.
The rewards are partly settled in cash. The cash portion
is intended to cover income taxes and tax-related costs
arising from the reward to the participant. No reward will
be paid, if a participant’s employment or service ends
before the reward payment. The Board of Directors of
Suominen Corporation is entitled to reduce the rewards
as agreed in the plan if the limits set by the Board of
Directors for the share price are not reached.
The aim of the plans is to combine the objectives of the
shareholders and the persons participating in the plans in
order to increase the value of the company in the long-
term, to bind the participants to the company, and to oer
them competitive reward plans based on earning and
accumulating the company’s shares.
A member of the Executive Team must hold 50% of
the net number of shares given on the basis of the plans,
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 must hold 50% of the net number of
shares given on the basis of the plans until 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.
Share-based incentive plan 2018−2021
As the share-based payment plan vested, in total 34,872
shares were transferred to the participants of the plan in
February 2021.
Share-based incentive plan 2019−2021
The Board of Directors of Suominen Corporation resolved
on January 30, 2019 on a new share-based incentive plan
for the Group management and Group key employees.
The three-year vesting period of the new share-based
plan included calendar years 2019–2021. The Board
of Directors decides on the performance criteria and
required performance levels for each criterion at the
beginning of each vesting period. The plan is directed to
approximately 20 people.
The potential reward of the plan from the vesting period
2019–2021 will be based on the Relative Total Shareholder
Return (TSR). The rewards to be paid on the basis of the
vesting period 2019–2021 correspond to the value of
an approximate maximum total of 729,000 Suominen
Corporation shares (including also the portion to be
settled in cash).
The potential rewards from the vesting periods 2019–
2021 will be settled partly in shares and partly in cash
in2022.
Matching share plan 2019–2021
The Board of Directors of Suominen Corporation resolved
on June 4, 2019 on a new share-based incentive plan.
The matching share plan was directed to selected key
employees in the Suominen Group. The prerequisite for
receiving a reward from the plan was that a participant
acquired the company’s shares, amounting to the number
resolved by the Board. If the prerequisites set for a
participant were fulfilled and his or her employment or
service in a company belonging to the Suominen Group
was in force at the time of the reward payment, he or she
received matching shares as a reward.
In accordance with the matching share-based payment
program, 9,352 shares were transferred to the participants
of the program in September 2021 and 9,352 shares
were transferred to the participants of the program in
September 2020.
Share-based incentive plan 2020−2022
The Board of Directors of Suominen Corporation resolved
on January 29, 2020 on a new vesting period of the
share-based incentive plan for the Group management
and Group key employees. The vesting period of the plan
includes calendar years 2020–2022. The plan is directed
to approximately 20 people.
The potential reward of the plan from the vesting
period 2020–2022 will be based on the Relative Total
Shareholder Return (TSR). The rewards to be paid on the
basis of the vesting period 2020–2022 correspond to
the value of an approximate maximum total of 893,000
Suominen Corporation shares (including also the portion
154 Suominen Annual Report 2021
This is Suominen | Sustainability | Corporate Governance | Financial Information
to be settled in cash). The Board of Directors will be
entitled to reduce the rewards agreed in the plan if the
limits set by the Board of Directors for the share price
arereached.
The potential rewards from the vesting periods 2020–
2022 will be settled partly in shares and partly in cash
in2023.
Share-based incentive plan 2021−2023
The Board of Directors of Suominen Corporation resolved
on February 3, 2021 on a new share-based long-term
incentive plan for the management and key employees.
The new plan has one three-year vesting period, which
includes calendar years 2021–2023. The share-based
incentive share plan is directed to approximately 20 people.
The potential reward for the vesting period 2021–2023
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 vesting period 2021–2023 is
an approximate total of 470,000 Suominen Corporation
shares (including also the portion to be settled in cash). 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.
The potential rewards from the vesting periods 2021–
2023 will be settled partly in shares and partly in cash in
2024. The cash portion 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.
Measurement of instruments granted during the reporting
period
Share price at grant date, EUR .
Volatility assumption, % %
Expected dividends, EUR .
Eect of market condition in fair value, % 
Valuation model Monte Carlo
Fair value per share, EUR .
Accounting principles
The fair values of the shares to be potentially settled
based on the share-based plans are measured at grant
dates based on the market value of the share. If the plan
includes market conditions, they are taken into account in
the fair value. The fair value is recognized in profit or loss
during the vesting period.
When the vesting conditions of a share-based incentive
plan include market conditions, such as TSR (“Total
Shareholder Return”), the fair value measured at grant date
will not be subsequently changed and the cost estimate
recognized will not be reversed, if the market condition
does not vest. If the other vesting conditions of the plan
(such as service condition and result based conditions) are
not fulfilled, the cost estimates based on these conditions
are reversed.
Suominen has share-based payment transactions
which have net settlement features for withholding tax
obligations. At the time of exercise or vesting Suominen
withholds a number of shares that is equal to the
monetary value of the employee’s tax obligation from
the total number of shares that would have otherwise
been issued to the employee, and transfers the amount
in cash to tax authorities on behalf of the employee. In
accordance with IFRS 2, in these cases both the portion
settled in shares and the portion settled in cash are
recognized in equity and also the fair value of the cash
portion is based on the fair value at grant date.
Eect on the profit for the period and on financial position in
2021
EUR thousand
Expense (-) for the reporting period -,
Recognized in equity during 2021, net ,
Liability on December 31, 2021 
Estimate of the amount for settling the employees'
tax obligation on December 31, 2021 ,
155Suominen Annual Report 2021
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Information on share-based incentive plans
Share-based
incentive plan
−
Share-based
incentive plan
−
Matching share
plan –
Share-based
incentive plan
−
Share-based
incentive plan
−
Total / weighted
average
Maximum number of
shares, including the
portion to be settled
in cash , , , , , ,,
Initial grant date December ,  January ,  June ,  January ,  February , 
Vesting date February ,  March , 
September ,
 March ,  March , 
Vesting conditions EBIT %, total
shareholder return
(TSR)
Total shareholder
return (TSR)
Share ownership Total shareholder
return (TSR)
Total shareholder
return (TSR)
Employment
precondition until
reward payment
Employment
precondition until
reward payment
Employment
precondition until
reward payment
Employment
precondition until
reward payment
Employment
precondition until
reward payment
Maximum contractual
life, years . . . . .
Remaining contractual
life, years − . − . . .
Number or persons at
the end of reporting
period −  −  
Payment method Shares and cash Shares and cash Shares and cash Shares and cash Shares and cash
Changes in 2021
Share-based
incentive plan
−
Share-based
incentive plan
−
Matching share
plan –
Share-based
incentive plan
−
Share-based
incentive plan
− Total
Outstanding at the
beginning of the period , , , , − ,,
Granted − − − − , ,
Forfeited - , − − -, − -,
Exercised -, − -, − − -,
Outstanding at the
end of the period − , − , , ,,
156 Suominen Annual Report 2021
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NOTE 33 Earnings per share
Profit for the period
EUR thousand  
Profit for the period , ,
Number of shares
Average share-issue adjusted number of
shares
,, , ,
Average diluted share-issue adjusted
number of shares excluding treasury
shares
,, ,,
Earnings per share
EUR
Basic . .
Diluted . .
Calculation of 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 eects of the share-based
incentive plans.
NOTE 34 Adjustments
to statement of cash flows
EUR thousand
Adjustments to cash flow from operations
 
Adjustments to profit for the period
Income taxes , ,
Financial income and expenses  ,
Depreciation, amortization and
impairment losses , ,
Gains and losses from disposal of
property, plant and equipment and
intangible assets -
Other non-cash flow items in profit for
the period , ,
Total , ,
157Suominen Annual Report 2021
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NOTE 35 Related parties
Management remuneration
Remuneration of Board of Directors
as paid  
EUR annual fee meeting fee annual fee meeting fee
Jaakko Eskola, Chair of the Board of Directors from March 25, 2021 , , − −
Jan Johansson, Chair of the Board of Directors, until March 25, 2021 − − , ,
Andreas Ahlström, Deputy Chair of the Board , , , ,
Björn Borgman, from March 19, 2020 , , , ,
Nina Linander, from March 19, 2020 , , , ,
Sari Pajari-Sederholm , , , ,
Laura Raitio , , , ,
Risto Anttonen, Deputy Chair of the Board, until March 19, 2020 − − − ,
Hannu Kasurinen, until March 19, 2020 − − − ,
Total , , , ,
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.
The members of the Board of Directors have no
pension arrangements with Suominen.
The members of the Board of Directors have no specific
agreements related to termination of the membership in
the Board due to a public tender oer.
Remuneration of the President & CEO
Petri Helsky
as paid
EUR  
Salaries , ,
Paid bonuses , ,
Share-based payments , ,
Total salaries , ,
Fringe benefits , ,
Total , ,
Statutory pensions , ,
Supplementary pensions , ,
A written contract has been made with the President &
CEO, Petri Helsky. Based on the agreement he has a six-
month period of notice. Should the company terminate
the contract, additional compensation corresponding
to the 12 months’ salary will also be paid. The President
& CEO has a supplementary pension plan, with a cost
of 11.5% of his annual salary as defined in the Finnish
Pension Law. The supplementary pension arrangement
grants pension benefits at the age of 63. The President &
CEO has no specific agreement related to termination of
contract due to a public tender oer.
Remuneration of other members of the Executive Team
as paid
EUR  
Salaries , ,
Paid bonuses , ,
Share-based payments , ,
Total salaries ,, ,,
Fringe benefits , ,
Total ,, ,,
Statutory pensions , ,
Supplementary pensions , ,
158 Suominen Annual Report 2021
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Managements’ share ownership
number of shares
December ,

December ,

Board of Directors
Jaakko Eskola, Chair of the Board of
Directors from March 25, 2021 , −
Jan Johansson, Chair of the Board of
Directors, until March 25, 2021 − ,
Andreas Ahlström, Deputy Chair of
the Board , ,
Björn Borgman , ,
Nina Linander , ,
Sari Pajari-Sederholm , ,
Laura Raitio , ,
Total , ,
Total % of shares and votes .% .%
December ,

December ,

Executive Team
Petri Helsky , ,
Lynda Kelly , ,
Markku Koivisto , ,
Klaus Korhonen , ,
Toni Tamminen , ,
Mimoun Saïm , ,
Total , ,
Total % of shares and votes .% .%
Share-based incentives plans are disclosed in Note 32
of the consolidated financial statements. 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.
Accounting principles
Parties are considered to be related parties if a party is
able to exercise control over the other or substantially
influence its decision-making concerning its finances and
business operations.
Suominen 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.
No loans, guarantees or other collaterals have been
given on behalf of related parties, with the exception of
the subsidiaries.
The members of the Executive Team have normally no
other pension arrangements than statutory pensions.
Supplementary pension arrangements in the USA are
included in statutory pensions. The retirement age of
other members of the Executive Team is according to the
normal local legislation.
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, 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.
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NOTE 36 Contingent liabilities
EUR thousand
 
Guarantees and other commitments
Guarantees on own commitments , ,
Other own commitments , ,
Total , ,
Other contingencies
Contractual commitments to acquire
property, plant and equipment  ,
Commitments to leases not yet
commenced  
Total , ,
Guarantees on own commitments are guarantees given to
suppliers.
Some subsidiaries of Suominen have guaranteed the
external loans of Suominen Corporation. The maximum
guaranteed amount is the unpaid principal of the loans
and unpaid accrued interest expenses at the end of the
reporting period.
Minimum lease payments under non-cancellable
operating leases in future periods are disclosed in Note26.
Accounting principles – contingent liabilities
A contingent liability is a possible obligation which is
not recognized as a liability in the statement of financial
position as, for example, its existence is not yet confirmed
and is not in control of the company. The management
uses estimates to assess the amount of contingent
liabilities.
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NOTE 37 Events after
the reporting period
Suominen Corporation received a notification on
January19, 2022 referred to 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 had fallen below
thethreshold of 5%.
After the end of the reporting period, Suominen has
acquired in total 68,677 treasury shares with the total
consideration of EUR 0.3 million. 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. Following
the repurchases, the company holds a total of 1,034,661
treasury shares.
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 proposed on January 21, 2022 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 had 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.
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 treasury 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.
161Suominen Annual Report 2021
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A new share-based long-term incentive plan for
management and key employees
The Board of Directors of Suominen Corporation resolved
in its meeting 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
Suominen in the long-term, to bind the participants to
Suominen and to oer them competitive reward plans
based on earning and accumulating Suominen shares.
The new performance share plan has one three-year
vesting period, which includes calendar years 2022–2024.
The performance share plan is directed to approximately
25 people including the President & CEO of Suominen.
The potential reward for the vesting 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 vesting 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.
If the targets of the plan are reached, rewards will be
paid to participants in spring 2025 after the end of the
vesting period. The potential rewards from the vesting
period 2022–2024 will be paid partly in Suominen shares
and partly in cash. The cash proportion is intended to
cover taxes and tax-related costs arising from the reward
to the participant. Suominen 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% 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% 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.
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Key ratios per share
Key ratios per share are share-issue adjusted.
  
Earnings per share, EUR . . .
Earnings per share, EUR, diluted . . .
Cash flow from operations per share, EUR . . .
Equity per share, EUR . . .
Price per earnings per share (P/E) ratio . . .
Dividend and return of capital per share, total, EUR* . . .
Dividend payout ratio, % . . ,.
Dividend yield, % . . .
Number of shares, end of period, excluding treasury shares ,, , , , ,
Average number of shares excluding treasury shares ,, ,, ,,
Average share-issue adjusted number of shares excluding treasury shares ,, ,, ,,
Share price, end of period, EUR . . .
Share price, period low, EUR . . .
Share price, period high, EUR . . .
Volume-weighted average price during the period, EUR . . .
Market capitalization, EUR million . . .
Number of traded shares during the period ,, ,, ,,
Number of traded shares during the period, % of average number of shares (share turnover) . . .
*2021 the proposal of the Board of Directors to the Annual General Meeting.
163Suominen Annual Report 2021
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Calculation of key 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 (EPS) =
Profit for the period
Share-issue adjusted average number of shares excluding
treasury shares
Diluted earnings per share (EPS) =
Profit for the period
Average diluted share-issue adjusted number of shares excluding
treasury shares
Calculation of earnings per share is disclosed in Note 33.
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 the reporting period
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 the reporting period
 
Cash flow from operations, EUR thousand , ,
Share-issue adjusted number of shares excluding treasury shares,
end of the reporting period ,, , ,
Cash flow from operations per share, EUR . .
 
Total equity attributable to owners of the parent,
EUR thousand , ,
Share-issue adjusted number of shares excluding treasury shares,
end of the reporting period ,, , ,
Equity per share, EUR . .
Reference
Consolidated statement of cash flows
Note 15
Reference
Consolidated statement of
financialposition
Note15
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Dividend yield, %
Dividend yield, % =
Dividend and return of capital per share x 100
Share price at end of the period
Dividend payout ratio, %
Dividend payout ratio, % =
Dividend and return of capital per share x 100
Basic earnings per share
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
 
Dividend and return of capital per share x 100 . .
Share price at end of the period, EUR . .
Dividend yield, % . .
 
Dividend and return of capital per share x 100 . .
Basic earnings per share, EUR . .
Dividend payout ratio, % . .
 
Share price at end of the period, EUR . .
Basic earnings per share, EUR . .
Price per earnings per share (P/E) . .
Reference
Note33
Reference
Note15
Reference
Note15
Note33
Market capitalization
Market capitalization =
Number of shares at the end of reporting period excluding treasury
shares x share price at the end of period
 
Number of shares at the end of reporting period
excluding treasury shares ,, , ,
Share price at end of the period, EUR . .
Market capitalization, EUR million . .
Reference
Note15
Note15
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Share turnover
Share turnover =
The proportion of number of shares traded during the period to
weighted average number of shares excluding treasury shares
 
Number of shares traded during the period ,, ,,
Average number of shares excluding treasury shares ,, ,,
Share turnover, % . .
Reference
Note15
Note15
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Parent company
financial statements (FAS)
Income statement
EUR
Note
January –
December , 
January –
December , 
Net sales ,,. ,,.
Cost of goods sold -,,. -,,.
Gross profit ,, . ,,.
Other operating income ,,. ,.
Sales and marketing expenses -,,. -,,.
Research and development -,,. -,,.
Administration expenses -,,. -,,.
Other operating expenses -,,. -,,.
Operating profit ,,. ,,.
Financial income ,,. ,,.
Financial expenses -,,. -,,.
Total financial income and expenses ,,. ,,.
Profit before appropriations and income taxes ,,. ,,.
Change in depreciation dierence ,. ,.
Group contributions -,,. -,,.
Income taxes -,,. -,.
Profit for the period ,,. ,,.
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Balance sheet
EUR
Note December ,  December , 
ASSETS
Non-current assets
Intangible assets , ,,. ,,.
Tangible assets , ,. ,.
Investments
Shares in subsidiaries  ,,. ,,.
Other investments  . ,.
Loan receivables
Loan receivables from group companies  ,,. ,,.
Loan receivables from others − ,,.
Other non-current receivables  ,. ,.
Total non-current assets ,,. ,,.
Current assets
Loan receivables
Loan receivables from group companies  ,,. −
Loan receivables from others − ,,.
Trade receivables  ,. ,.
Other current receivables  ,,. ,,.
Cash and cash equivalents ,,. ,,.
Total current assets ,,. ,,.
TOTAL ASSETS ,,. ,,.
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EUR
Note December ,  December , 
EQUITY AND LIABILITIES
Equity
Share capital  ,,. ,,.
Share premium account ,,. ,,.
Reserve for invested unrestricted equity ,,. ,,.
Retained earnings ,,. ,,.
Profit for the period ,, . ,,.
Total equity  ,,. ,,.
Untaxed reserves
Depreciation dierence ,,. ,,.
Liabilities
Non-current liabilities
Interest-bearing liabilities
Debentures  ,,. ,,.
Total non-current liabilities ,,. ,,.
Current liabilities
Interest-bearing liabilities
Debentures  ,,. −
Current loans from group companies  ,,. ,,.
Trade payables and other current liabilities  ,,. ,,.
Total current liabilities ,,. , ,.
Total liabilities ,,. ,,.
TOTAL EQUITY AND LIABILITIES ,,. ,,.
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Cash flow statement
EUR thousand
Note
January –
December , 
January –
December , 
Cash flow from operations
Profit for the period , ,
Adjustments to profit for the period  -, ,
Cash flow from operations before change in net working capital , ,
Increase (-) or decrease (+) in trade and other receivables - 
Increase (+) or decrease (-) in interest-free current liabilities - 
Cash flow from operations before payments of financial items and
income taxes , ,
Paid and received interests and other financial items , -,
Group contribution paid -, -
Paid income taxes - -
Cash flow from operations , ,
Cash flow from investments
Capital expenditure , - -
Proceeds from the sale of shares , −
Dividend income from subsidiaries , ,
Cash flow from investments , ,
Cash flow from financing
Change in non-current interest-bearing liabilities  , −
Issuance costs of the bonds - −
Change in current interest-bearing liabilities  -, -,
Change in non-current loan receivables - ,
Change in current loan receivables  ,
Acquisition of treasury shares -, −
Distribution of dividend and return of capital  -, -,
Cash flow from financing , ,
Change in cash and cash equivalents , ,
Cash and cash equivalents 1 January , ,
Exchange dierence on cash and cash equivalents , -,
Change in cash and cash equivalents , ,
Cash and cash equivalents 31 December , ,
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NOTE 1 Accounting policies
Suominen Corporation is a public limited liability company
organized under the laws of the Republic of Finland and
domiciled in Helsinki, Finland (Karvaamokuja 2 B, 00380
Helsinki, Finland). Suominen’s shares are publicly traded in
Nasdaq Helsinki Ltd. (Mid Cap). Suominen Corporation is
the parent company of the Group.
The financial statements of Suominen Corporation
are prepared in accordance with Finnish Accounting
Standards (FAS). The consolidated financial statements
of Suominen Group are prepared in accordance with
International Financial Reporting Standards (IFRS), and
Suominen Corporation applies in its separate financial
statements the same accounting principles as Suominen
Group to the extent it is possible within the framework of
Finnish accounting practice. The accounting principles
of Suominen Group are presented in the notes to the
consolidated financial statements.
The main dierences in the accounting principles
between Suominen Corporation’s separate financial
statements and Suominen Group’s consolidated financial
statements are presented below.
Net sales
Net sales consist of sales of services to group companies
and of royalty income.
Financial assets and liabilities and derivative
instruments
Financial assets and liabilities with the exception of
derivative instruments are recognized at cost or at cost
less impairment losses. Derivatives are recognized at fair
value. Currency derivatives, if not hedging financial items
or are otherwise not considered to be financial items,
are recognized in other operating income and expenses.
If hedge accounting as defined in IFRS 9 is applied, the
eective portion of changes in the fair value of derivatives
is recognized in fair value reserve in equity. Both fair value
measurement of derivatives as well as hedge accounting
are presented in Note 21 of the consolidated financial
statements.
Leases
Lease payments are recognized as lease expenses. Leasing
obligations are presented as contingent liabilities.
Debentures
Debentures are presented at nominal value in the balance
sheet, and periodized transaction costs are recognized in
prepayments.
Untaxed reserves
Untaxed reserves consist of a depreciation dierence.
This dierence between scheduled depreciation and
amortization and the depreciation and amortization
deducted in arriving to taxable profit is presented as
a separate item in the income statement and in the
balancesheet.
Group contributions
Group contributions given are presented as
appropriations.
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NOTE 2 Other operating income
and expenses
EUR thousand
January –
December ,

January –
December ,

Other operating income
Gains on sale of shares , −
Gains from currency derivatives − 
Operating subsidies and grants
received  −
Other operating income  −
Total , 
Other operating expenses
Services purchased from group
companies -, -,
Losses from currency derivatives - −
Other operating expenses - -
Total -, -,
NOTE 3 Personnel expenses
EUR thousand
January –
December ,

January –
December ,

Salaries -, -,
Pension expenses - -
Other personnel costs - -
Total -, -,
Average number of personnel  
Number of personnel, end of period  
Management remuneration
Management remuneration is presented in Note 35 of the
consolidated financial statements.
NOTE 4 Audit fees
EUR thousand
January –
December ,

January –
December ,

Statutory audit - -
Other services - -
Total - -
Ernst & Young Oy (EY) has been acting as the principal
auditor of the Group and the parent company since the
Annual General Meeting of 2015.
NOTE 5 Depreciation, amortization
and impairment
EUR thousand
January –
December ,

January –
December ,

Depreciation, amortization and
impairment by function
Cost of goods sold -, -,
Sales and marketing expenses - -
Research and development - -
Administration expenses -, -,
Total -, -,
Depreciation, amortization and
impairment by asset category
Machinery and equipment - -
Intangible rights -, -,
Total -, -,
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NOTE 6 Financial income and expenses
EUR thousand
January –
December ,

January –
December ,

Interest income from group companies , ,
Interest income from others  
Dividend income from group companies , ,
Other financial income from group companies  
Net currency exchange dierences , -,
Interest expenses to group companies -
Interest expenses to others -, -,
Impairment losses and fair value change of financial assets , -
Other financial expenses to others -, -,
Total , ,
NOTE 7 Appropriations
EUR thousand
January –
December ,

January –
December ,

Increase (-) or decrease (+) in cumulative depreciation dierence  
Given group contributions -, -,
Total -, -,
NOTE 8 Income taxes
EUR thousand
January –
December ,

January –
December ,

Income taxes for the financial year -, -
Withholding taxes and other direct taxes  -
Income taxes from previous years -
Total -, -
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NOTE 9 Intangible assets
EUR thousand
Intangible rights
Advance
payments and
construction
in progress Total Total 
Acquisition cost January 1 , , ,
Additions    
Reclassifications  - − −
Acquisition cost December 31 , − , ,
Accumulated amortization January 1 -, − -, -,
Amortization for the period -, − -, -,
Accumulated amortization December 31 -, − -, -,
Carrying amount December 31 , − , ,
NOTE 10 Tangible assets
EUR thousand
Land and
water areas
Machinery and
equipment
Other tangible
assets
Advance
payments and
construction
in progress Total Total 
Acquisition cost January 1   −  
Additions −  −  −
Decreases and disposals − - − − - −
Reclassifications − − - – −
Acquisition cost December 31   −  
Accumulated depreciation
January 1 − - - − - -
Depreciation for the period − - - − - -
Decreases and disposals −  − −  −
Accumulated depreciation
December 31 − - - − - -
Carrying amount December 31   −  
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NOTE 11 Investments
EUR thousand
Shares in group
companies
Other
investments Total Total 
Carrying amount January 1 ,  , ,
Investments − − − ,
Disposals − - - −
Impairment losses − − − -
Carrying amount December 31 , , ,
Group companies are presented in Note 9 of the consolidated financial statements.
Share of shares
and votes, %
Number
of shares
Nominal value
of shares,
EUR thousand
Carrying amount
of shares,
EUR thousand
Equity of
the company,
EUR thousand
Profit/loss in
the latest financial
statements,
EUR thousand
Kiinteistö Oy
Killinpolku, Virrat,
Finland . - -
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NOTE 12 Receivables
EUR thousand
December ,

December ,

Non-current receivables
Rental deposits  
Total non-current receivables  
Non-current receivables from group companies
Interest-bearing receivables , ,
Total , ,
Total non-current receivables , ,
Current receivables
Other receivables  
Prepaid expenses and accrued income
Income taxes  
Transaction costs of loans , ,
Prepaid expenses  
Unrealized gain from currency derivatives 
Total prepaid expenses and accrued income , ,
Current receivables from group companies
Trade receivables  
Interest-bearing receivables , −
Total , 
Total other current receivables , ,
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NOTE 13 Equity
EUR thousand
December ,

December ,

Share capital January 1 and December 31 , ,
Share premium account January 1 and December 31 , ,
Reserve for invested unrestricted equity January 1 , ,
Return of capital -, −
Conveyance of treasury shares  
Unpaid returns of capital −
Reserve for invested unrestricted equity December 31 , ,
Retained earnings January 1 , ,
Distribution of dividend -, -,
Unpaid dividends
Acquisition of treasury shares -, −
Retained earnings December 31 , ,
Profit for the period , ,
Equity December 31 , ,
Distributable funds
EUR
December ,

Retained earnings December 31 ,,
Reserve for invested unrestricted equity December 31 ,,
Profit for the period ,,
Distributable funds ,,
Funds available for dividend distribution
EUR
Retained earnings December 31 ,,
Profit for the period ,,
Funds available for dividend distribution ,,
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NOTE 14 Share capital
Share capital and shares are presented in Note 15 of
theconsolidated financial statements.
NOTE 15 Interest-bearing liabilities
EUR thousand
December ,

December ,

Non-current interest-bearing
liabilities
Debentures , ,
Total non-current interest-bearing
liabilities , ,
Current interest-bearing liabilities
Debentures , −
Loans from group companies , ,
Total current interest-bearing
liabilities , ,
Total interest-bearing liabilities , ,
Repayments of external non-current interest-bearing liabilities
    
Debentures , − − − −
NOTE 16 Interest-free liabilities
EUR thousand
December ,

December ,

Current interest-free liabilities
Trade payables  
Income tax liability  −
Other current liabilities  
Accrued expenses
Accrued interest expenses  
Accrued personnel expenses  ,
Other accrued expenses  
Total accrued expenses , ,
Liabilities to group companies
Other liabilities to group companies , ,
Total , ,
Total current interest-free liabilities , ,
NOTE 17 Contingent liabilities
EUR thousand
December ,

December ,

Guarantees
On behalf of group companies , ,
On own behalf  
Total , ,
Guarantees on behalf of group companies are guarantees
given to suppliers and lessors.
Rental and leasing obligations
Falling due within next 12 months  
Falling due later  
Total  
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NOTE 18 Derivative instruments
EUR thousand
Nominal and fair values of derivative instruments
December ,  December , 
Nominal
value Fair value
Nominal
value Fair value
Currency forward contracts
External , - , 
NOTE 19 Adjustments to cash flow statement
EUR thousand
January –
December , 
January –
December , 
Adjustment to profit for the period
Change in depreciation dierence - -
Group contributions , ,
Financial income and expenses -, -,
Income taxes , 
Depreciation and amortization , ,
Proceeds from the sale of shares -, −
Other non-cash items in profit for the period  
Total adjustments to profit for the period -, ,
179Suominen Annual Report 2021
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Proposal by
the Board of Directors
for 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.
Helsinki, February 2, 2022
Jaakko Eskola
Chair of the Board
Nina Linander
Petri Helsky
President and CEO
Andreas Ahlström
Sari Pajari-Sederholm
Björn Borgman
Laura Raitio
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Auditor’s report
(Translation of the Finnish original)
To the Annual General Meeting of Suominen Corporation
Report on the Audit of Financial
Statements
Opinion
We have audited the financial statements of Suominen
Corporation (business identity code 1680141-9) for the
year ended December 31, 2021. The financial statements
comprise the consolidated statement of financial
positions, statement of profit or loss, statement of
comprehensive income, statement of changes in equity,
statement of cash flows and notes, including a summary
of significant accounting policies, as well as the parent
company’s income statement, balance sheet, cash flow
statement and notes.
In our opinion
- the consolidated financial statements give a true and
fair view of the Group’s financial position as well as its
financial performance and its cash flows in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU.
- the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s
Responsibilities for the Audit of Financial Statements
section of our report.
We are independent of the parent company and of
the group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-
audit services that we have provided to the parent
company and group companies are in compliance with
laws and regulations applicable in Finland regarding these
services, and we have not provided any prohibited non-
audit services referred to in Article 5(1) of regulation (EU)
537/2014. The non-audit services that we have provided
have been disclosed in Note 27 to the consolidated
financial statements and Note 4 to the parent company
financial statements.
We believe that the audit evidence we have obtained
is sucient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation
to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our
assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures,
including the procedures performed to address the
matters below, provide the basis for our audit opinion on
the accompanying financial statements.
We have also addressed the risk of management
override of internal controls. This includes consideration
of whether there was evidence of management bias that
represented a risk of material misstatement due to fraud.
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KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Revenue Recognition
We refer to the Group’s accounting policies and
the Note 23
Revenues of Suominen Group consist entirely of sales
of nonwovens to customers. Revenue from customer
contracts is recognised at a point in time, when the
control of the underlying products has been transferred
to the customer, typically at the time when the products
are shipped from Suominen’s factory.
Revenue is a key performance measure used by the
Group, which could create an incentive for premature
revenue recognition.
Revenue recognition was determined to be a key audit
matter and a significant risk of material misstatement
referred to in EU Regulation No 537/2014, point (c) of
Article 10(2) due to the risk related to incorrect timing
(cut-o) of revenue recognition.
Our audit procedures to address the risk of material
misstatement relating to revenue recognition, included,
among others:
- assessing the Group’s accounting policies over revenue
recognition and comparing them with applicable
accounting standards;
- assessing the revenue recognition process and
-methodologies and testing controls where applicable;
- obtaining confirmations of accounts receivable
balances from customers and analyzed credit invoices
issued after the balance sheet date;
- testing revenue recognition including cut-o with
analytical procedures and by substantive sales
transactions testing and
- assessing the Group’s disclosures in respect of
revenues.
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Responsibilities of the Board of Directors
and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU, and of financial statements that
give a true and fair view in accordance with the laws
and regulations governing the preparation of financial
statements in Finland and comply with statutory
requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as
they determine is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of
Directors and the Managing Director are responsible for
assessing the parent company’s and the Group’s ability
to continue as going concern, disclosing, as applicable,
matters relating to going concern and using the going
concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting
unless there is an intention to liquidate the parent
company or the Group or cease operations, or there is no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of
Financial Statements
Our objectives are to obtain reasonable assurance on
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sucient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
- Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the eectiveness
of the parent company’s or the Group’s internal control.
- Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
- Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the parent company’s or the
Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the parent company or
the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events so that the financial
statements give a true and fair view.
- Obtain sucient appropriate audit evidence regarding
the financial information of the entities or business
activities within the Group to express an opinion on the
consolidated financial statements. We are responsible
for the direction, supervision and performance of
the group audit. We remain solely responsible for our
auditopinion.
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We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant ethical
requirements regarding independence, and communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were of
most significance in the audit of the financial statements
of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting on March 19, 2015, and our appointment
represents atotal period of uninterrupted engagement of
7 years.
Other information
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of
Directors and the information included in the Annual
Report, but does not include the financial statements and
our auditor’s report thereon. We have obtained the report
of the Board of Directors prior to the date of this auditor’s
report, and the Annual Report is expected to be made
available to us after that date.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information
identified above and, in doing so, consider whether the
other information is materially inconsistent with the
financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
With respect to report of the Board of Directors, our
responsibility also includes considering whether the
report of the Board of Directors has been prepared in
accordance with the applicable laws and regulations.
In our opinion, the information in the report of the
Board of Directors is consistent with the information
in the financial statements and the report of the Board
of Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki, February 2, 2022
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Independent Auditor’s Report
on Suominen Corporation’s
ESEF Consolidated Financial
Statements
To the Board of Directors of Suominen Corporation
We have performed a reasonable assurance
engagement on the iXBRL tagging of the consolidated
financial statements included in the digital files
743700Z1BNFYR9PRDF52-2021-12-31-en.zip of
Suominen Corporation for the financial year J
anuary1–
December31, 2021 to ensure that the financial statements
are tagged with iXBRL mark ups in accordance with the
requirements of Article 4 of EU Commission Delegated
Regulation (EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors
and Managing Director
The Board of Directors and Managing Director are
responsible for the preparation of the Report of Board
of Directors and financial statements (ESEF financial
statements) that comply with the ESEF RTS. This
responsibility includes:
- preparation of ESEF financial statements in accordance
with Article 3 of ESEF RTS
- tagging the consolidated financial statements included
within the ESEF financial statements by using the iXBRL
mark ups in accordance with Article 4 of ESEF RTS
- ensuring consistency between ESEF financial statements
and audited financial statements
The Board of Directors and Managing Director are also
responsible for such internal control as they determine
is necessary to enable the preparation of ESEF financial
statements in accordance the requirements of ESEF RTS.
Auditor’s Independence and Quality Control
We are independent of the company in accordance with
the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed,
and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The auditor applies International Standard on Quality
Control (ISQC) 1 and therefore maintains a comprehensive
quality control system including documented policies
and procedures regarding compliance with ethical
requirements, professional standards and applicable legal
and regulatory requirements.
Auditor’s Responsibilities
In accordance with the Engagement Letter we will
express an opinion on whether the electronic tagging
of the consolidated financial statements complies in
all material respects with the Article 4 of ESEF RTS. We
have conducted a reasonable assurance engagement in
accordance with International Standard on Assurance
Engagements ISAE 3000.
The engagement includes procedures to obtain
evidenceon:
- w
hether the tagging of the primary financial statements
in the consolidated financial statements complies in all
material respects with Article 4 of the ESEF RTS
- w
hether the ESEF financial statements are consistent
with the audited financial statements
The nature, timing and extent of the procedures
selected depend on the auditor’s judgement including
185Suominen Annual Report 2021
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the assessment of risk of material departures from
requirements sets out in the ESEF RTS, whether due to
fraud or error.
We believe that the evidence we have obtained is
sucient and appropriate to provide a basis for our
statement.
Opinion
In our opinion the tagging of the consolidated financial
statement included in the ESEF financial statements of
Suominen Corporation for the year ended December31,
2021 complies in all material respects with the
requirements of ESEF RTS.
Our audit opinion on the consolidated financial
statements of Suominen Corporation for the year ended
December31, 2021 is included in our Independent
Auditor’s Report February 2, 2022. In this report, we do
not express an audit opinion or any other assurance on
the consolidated financial statements.
Helsinki March 2, 2022
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
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Key ratios
  
Net sales, EUR million . . .
Comparable operating profit, EUR million . . .
% of net sales . . .
Operating profit, EUR million, . . .
% of net sales . . .
Comparable EBITDA, EUR million . . .
EBITDA, EUR million . . .
% of net sales . . .
Profit before income taxes, EUR million . . .
% of net sales . . .
Profit for the period, EUR million . . .
% of net sales . . .
Cash flow from operations, EUR million . . .
Total assets, EUR million . . .
Return on equity (ROE), % . . .
Return on invested capital (ROI), % . . .
Equity ratio, % . . .
Interest-bearing net debt, EUR million . . .
Capital employed, EUR million . . .
Gearing, % . . .
Gross capital expenditure, EUR million . . .
% of net sales . . .
Depreciation, amortization, impairment losses and reversals of impairment losses, EUR million -. -. -.
Expenditure on research and development, EUR million . . .
as % of net sales . . .
Average number of personnel (FTE – full time equivalent)   
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Calculation of key ratios
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 comparisons 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.
Operating profit (EBIT) = Profit before income taxes + net financial expenses
Comparable operating profit (EBIT) =
Profit before income taxes
+ net financial expenses, adjusted with items aecting comparability
In order to improve the comparability of result between reporting periods, Suominen presents comparable operating
profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to
aect 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 aecting comparability in 2021 or 2020.
EBITDA and comparable EBITDA
EBITDA is an important measure that focuses on the operating performance excluding the eect of depreciation
and amortization, financial items and income taxes, in other words what is the margin on net sales after deducting
operating expenses.
In order to improve the comparability of result between reporting periods, Suominen presents comparable EBITDA
as an alternative performance measure. EBITDA is adjusted with material items that are considered to aect
comparability between reporting periods. These items include, among others, 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 aecting comparability in 2021 or 2020.
EBITDA = EBIT + depreciation, amortization and impairment losses
Comparable EBITDA =
EBIT + depreciation, amortization and impairment losses,
adjusted with items aecting comparability
EUR thousand  
Operating profit , ,
+ Depreciation, amortization and impairment losses , ,
EBITDA , ,
Reference
Consolidated statement of profit or loss
Note29
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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.
Operating profit (EBIT) = Profit before income taxes + net financial expenses
Comparable operating profit (EBIT) =
Profit before income taxes
+ net financial expenses, adjusted with items aecting comparability
In order to improve the comparability of result between reporting periods, Suominen presents comparable operating
profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to
aect 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 aecting comparability in 2021 or 2020.
EBITDA and comparable EBITDA
EBITDA is an important measure that focuses on the operating performance excluding the eect of depreciation
and amortization, financial items and income taxes, in other words what is the margin on net sales after deducting
operating expenses.
In order to improve the comparability of result between reporting periods, Suominen presents comparable EBITDA
as an alternative performance measure. EBITDA is adjusted with material items that are considered to aect
comparability between reporting periods. These items include, among others, 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 aecting comparability in 2021 or 2020.
EBITDA = EBIT + depreciation, amortization and impairment losses
Comparable EBITDA =
EBIT + depreciation, amortization and impairment losses,
adjusted with items aecting comparability
Cash and cash equivalents
Cash and cash equivalents = Cash + other financial assets
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  
Interest-bearing liabilities , ,
Tender and issuance costs of the debentures , ,
Interest bearing receivables − -,
Cash and cash equivalents -, -,
Interest-bearing net debt , ,
Interest-bearing liabilities , ,
Tender and issuance costs of the debentures , ,
Nominal value of interest-bearing liabilities , ,
Reference
Note16
Note12
Consolidated statement of financial
position
Note16
Note16
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. The gross investments do not include increases
in right-of-use assets.
Gross capital expenditure includes also capitalized borrowing costs and capitalized cash flow hedges.
EUR thousand  
Increases in intangible assets  
Increases in property, plant and equipment , ,
Gross capital expenditure , ,
Reference
Note6
Note7
189Suominen Annual Report 2021
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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  
Profit for the reporting period (rolling 12 months) , ,
Total equity attributable to owners of the parent December 31, 2020 / 2019 , ,
Total equity attributable to owners of the parent March 31, 2021 / 2020 , ,
Total equity attributable to owners of the parent June 30, 2021 / 2020 , ,
Total equity attributable to owners of the parent September 30, 2021 / 2020 , ,
Total equity attributable to owners of the parent December 31, 2021 / 2020 , ,
Average , ,
Return on equity (ROE), % . .
Reference
Consolidated statement of profit or loss
Consolidated statement
of financial position
Invested capital
Invested capital = Total equity + interest-bearing liabilities
EUR thousand  
Total equity attributable to owners of the parent , ,
Interest-bearing liabilities , ,
Invested capital , ,
Reference
Consolidated statement
of financial position
Note16
190 Suominen Annual Report 2021
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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  
Operating profit (rolling 12 months) , ,
Financial income (rolling 12 months)*  
Total , ,
Invested capital December 31, 2020 / 2019 , ,
Invested capital March 31, 2021 / 2020 , ,
Invested capital June 30, 2021 / 2020 , ,
Invested capital September 30, 2021 / 2020 , ,
Invested capital December 31, 2021 / 2020 , ,
Average , ,
Return on invested capital (ROI), % . .
* Excluding fair value change
Reference
Consolidated statement of profit or loss
Note30
191Suominen Annual Report 2021
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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 buer against potential losses, and equity ratio represents the
level of this buer.
Equity ratio, % =
Total equity attributable to owners of the parent x 100
Total assets - advances received
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
EUR thousand  
Total equity attributable to owners of the parent , ,
Total assets , ,
Advances received - -
, ,
Equity ratio, % . .
EUR thousand  
Interest-bearing net debt , ,
Total equity attributable
to owners of the parent , ,
Gearing, % . .
Reference
Consolidated statement
of financial position
Consolidated statement
of financial position
Note20
Reference
Consolidated statement of financial
position
192 Suominen Annual Report 2021
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Information for shareholders
Financial calendar
Suominen will publish its Financial Statements
Release, Half Year Financial Report and two
Interim Reports in 2022 as follows:
February 3, 2022 Financial Statements Release
for 2022
May 4, 2022 Interim Report
for January–March 2022
August 9, 2022 Half Year Financial Report
for January–June 2022
October 26, 2022 Interim Report
for January–September 2022
The Annual General Meeting
Notice is given to the shareholders of Suominen
Corporation to the Annual General Meeting to be held on
Thursday March 24, 2022 at 10:00 a.m. at the company’s
headquarters at the address Karvaamokuja 2 B, Helsinki.
The Board of Directors of the company has resolved on
an exceptional meeting procedure based on temporary
legislation that entered into force on May 8, 2021
(375/2021, the “Temporary Act”). In order to limit the
spread of the Covid-19 pandemic, the Annual General
Meeting will be held without shareholders’ or their proxy
representatives’ presence at the Meeting venue. This
is necessary in order to organize the Annual General
Meeting in a predictable way while taking into account
the health and safety of the company’s shareholders,
personnel and other stakeholders.
Shareholders and their proxy representatives can
participate in the meeting and exercise their shareholder
rights only by voting in advance and by making
counterproposals and presenting questions in advance
in accordance with this notice and the company’s other
instructions. It is not possible to participate in the Annual
General Meeting at the Meeting venue or to follow the
Meeting through a video stream.
Notice to the Annual General Meeting has
been announced as a stock exchange release on
February 3, 2022. All materials to the Annual General
meeting are available on the company’s website
www.suominen.fi/en/agm.
Each shareholder, who is registered on the record
date of the General Meeting on March 14, 2022 in the
shareholders’ register of the company held by Euroclear
Finland Ltd, has the right to participate in the General
Meeting. A shareholder, whose shares are registered on
his/her personal Finnish book-entry account, is registered
in the shareholders’ register of the company.
Registration for the meeting and advance voting begins
on February 15, 2022, when the deadline for delivering
counterproposals has expired and the company has
published the possible counterproposals to be put to a
vote on the company’s website.
A shareholder entered in the company’s shareholders’
register, who wishes to participate in the General Meeting,
must register for the General Meeting and vote in advance
on March 21, 2022 at 10:00 a.m. at the latest, by which
time the notice of participation and the votes must
bereceived.
Shareholders with a Finnish book-entry account can
register and vote in advance on certain items on the
agenda during the period February 15–March 21, 2022 at
10:00 a.m. by the following manners:
a) On the company’s website www.suominen.fi/en/agm
Electronic registering and voting in advance
require for natural persons the shareholder’s or its
proxy representative’s, and for legal persons, its
representative’s or proxy holder’s strong electronic
identification (Finnish or Swedish online banking codes
or the Mobile ID).
b) By regular mail or e-mail
A shareholder voting in advance by regular mail or
e-mail must deliver an advance voting form available
on the company’s website www.suominen.fi/en/agm
or corresponding information to Innovatics Oy by
regular mail to Innovatics Oy, Yhtiökokous / Suominen
Corporation, Ratamestarinkatu 13 A, 00520 Helsinki,
Finland or by e-mail to agm@innovatics.fi.
193Suominen Annual Report 2021
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If a shareholder participates in the General Meeting
by delivering votes in advance by regular mail or e-mail
to Innovatics Oy, the delivery of the votes before the
deadline for delivering the notice of participation and the
votes has expired shall constitute a registration for the
General Meeting provided that information required for
registration set out in the advance voting form is provided.
A shareholder must in connection with the registration
submit the requested information, such as the
shareholder’s name, personal ID and e-mail address and/
or phone number. Personal data disclosed in connection
with the shareholders’ registration will be used only in
connection with the General Meeting and the thereto
related necessary handling of registrations.
Instructions regarding the voting are available
to all shareholders on the company’s website
www.suominen.fi/en/agm. Additional information
and technical support for electronic registration is also
available by telephone at +358 10 2818 909 (business days
at 9:00 a.m. – 12:00 p.m. and 1:00 p.m. – 4:00 p.m.).
Proposal on distribution of funds
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.
The record date is March 28, 2022 and the dividend
would be paid on April 7, 2022.
Investor relations
Emilia Peltola, Vice President,
Communications & IR
tel. +358 10 214 3082
emilia.peltola@suominencorp.com
Request for management appointments:
Julia Koivulanaho, Senior Specialist,
Communications & IR
tel. +358 10 214 3091
julia.koivulanaho@suominencorp.com
Silent period
Suominen observes a 30-day silent period prior to the
publication of financial results. During this time, Suominen
does not comment on the company’s financial situation,
markets or outlook, and neither do Suominen’s executives
or employees meet with representatives of capital markets
or financial media.
194 Suominen Annual Report 2021
This is Suominen | Sustainability | Corporate Governance | Financial Information
Company information
Homepage of reporting entity www.suominen.fi
LEI code of reporting entity 743700Z1BNFYR9PRDF52
Name of reporting entity or other means of identification Suominen Oyj
Domicile of entity Helsinki
Legal form of entity Public limited liability company
Country of incorporation Finland
Address of entity's registered oce Karvaamokuja 2 B, 00380 Helsinki, Finland
Principal place of business Helsinki
Description of nature of entity's operations and principal activities Manufacturing of nonwovens as roll goods for wipes
and other applications
Name of parent entity Suominen Oyj
Name of ultimate parent of group Suominen Oyj
Explanation of change in name of reporting entity or other means
of identification from end of preceding reporting period
N/A
SUOMINEN CORPORATION
Head Oce
Karvaamokuja 2 B
FI-00380 Helsinki
Tel. +358 10 214 300
communications@suominencorp.com
Detailed contact information
to Suominen locations worldwide
is available at www.suominen.fi
www.suominen.fi
Twitter: @SuominenCorp
LinkedIn: Suominen Corporation
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