Annual
Report
2023
This is Suominen
Net sales, EUR million
450.9
Employees
673
Comparable EBITDA,
EUR million
15.8
Share of new products
of net sales exceeded
35%
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 2023 were EUR 450.9 million,
and we have nearly 700 professionals working in Europe and in
the Americas. Suominen’s shares are listed on Nasdaq Helsinki.
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
Managing sustainability…21
People and safety…22
Low impact manufacturing…28
Sustainable nonwovens…32
Corporate citizenship…35
Stakeholder dialogue…37
Tax management, tax strategy and footprint…39
Reporting principles…42
GRI index…43
GRI appendix…48
Our management approach…55
TCFD...56
Independent assurance statement…57
Corporate Governance…59
Corporate Governance Statement…60
Remuneration Report…70
Board of Directors…79
Executive Team…90
Financial information…81
Report by the Board of Directors…83
Consolidated financial statements (IFRS)…104
Key ratios per share…165
Parent company financial statement (FAS)…169
Proposal by the Board of Directors for
distribution of funds…182
Auditor’s report…183
Key ratios…189
Information for shareholders…195
Contents
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 2023 were EUR 450.9 million, and we have nearly
700 professionals working in Europe and in the Americas.
Suominen’s shares are listed on Nasdaq Helsinki.
Suominen has two business areas, the Americas and
Europe. In 2023, net sales of the Americas business area
amounted to EUR 288.0 million and the Europe business
area to EUR 162.8 million.
FINLAND 152
Nakkila
Helsinki, Head office
ITALY 98
Cressa
SPAIN 68
Alicante
BRAZIL 60
Paulínia
USA 295
Green Bay
Windsor Locks
Bethune
Suominen today
1_columns
Europe 36%
36
Americas 64%
64
Net sales by business area
Europe 36%
Americas 64%
450.9
EUR million
1
Suominen has
two business areas,
the Americas and
Europe.
3Suominen Annual Report 2023
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The year 2023 was still
challenging in terms of
profitability. Throughout the year,
we systematically implemented
various improvement measures,
and in the second half of the
year, they gradually began to
contribute to the results.
President &
CEO’s review
4 Suominen Annual Report 2023
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Our comparable EBITDA increased slightly from the
previous year and was EUR 15.8 million. After the first half
of the year, our commercial and operational excellence
improvements started to contribute, and we were able
to improve our sales margins. Our net sales in 2023 were
EUR 450.9 million.
During the first half of the year, we closed production
at our Mozzate site in Italy. The decision was made to
improve the competitiveness of our European business.
We will continue to take determined actions to improve
our financial and operational efficiency in the future.
Comparable EBITDA,
EUR million
15.8
Share of new products of
net sales exceeded
35%
Net sales, EUR million
450.9
Sales of sustainable products
increased*
79%
* Compared to base year 2019
Sustainability and innovation at the core of
everything we do
The cornerstones of our strategy are sustainability and
innovations, and we continuously develop our offerings
and operations accordingly.
Sustainability is important also to our customers and
other stakeholders. The wipes nonwovens market is
rapidly shifting towards more sustainable alternatives. In
line with our strategy, we have set targets to increase the
sales of sustainable products and to continuously develop
new environmentally friendly nonwovens to enable our
customers to be more sustainable. In 2023, we increased
the sales of sustainable products by 79%, exceeding our
target of 50% increase compared to the base year 2019.
Our target is also to launch over ten sustainable products
annually, and in 2023, we launched 12 such products.
During the year, we completed an investment project in
Nakkila. With this investment, we respond to the increased
demand for environmentally friendly products and, at the
same time, improve our operational performance in terms
of safety, quality, and productivity.
Sustainability is important
also to our customers and
other stakeholders.
The wipes nonwovens market
is rapidly shifting towards
more sustainable alternatives.
5Suominen Annual Report 2023
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Our strong ability to innovate and respond to market
needs is reflected in the share of new products in our net
sales, which exceeded 35%. By new products, we mean
products launched in the last three years. One excellent
example is HYDRASPUN
®
Circula, the first nonwoven
made of recycled materials that is suitable for producing
moist toilet tissue. The product won EDANA’s INDEX™23
Award as a model example of how sustainability and
innovation drive the entire nonwovens industry forward.
Occupational safety is a priority for us, and our goal is
naturally zero accidents. In 2023, we launched a safety
campaign to remind our employees of the importance of
safety every day and to encourage each employee to stop
and think before acting.
Strengthening employee engagement is another key
people-related target for us. In 2023, we conducted fourth
consecutive global employee engagement survey. The
response rate was good, and the results help us identify
factors that are positively affecting employee engagement
as well as areas where we still have opportunities
for improvement.
In 2023, we completed the EcoVadis sustainability
assessment for the second time and received a silver-
level rating. We improved our performance by five points,
placing us in the top 5% of companies in the manufacture
of other textiles industry rated by EcoVadis.
Towards the future
Our new organizational model came into effect at
the beginning of 2024. The new model enhances
collaboration between commercial teams and production.
Business areas that are now, in the new model, responsible
for both sales and production, enable us to be even more
efficient, focused, and agile in our efforts to improve
profitability and to serve our customers even better.
Looking ahead, we see some positive signals from both
the markets and our customers. I am confident that the
ongoing improvement measures and changes will help us
on our journey towards profitable growth.
I want to thank our shareholders, customers, and
partners for their productive collaboration. I especially
want to thank our employees for their commitment and
contribution. As we continue to move forward together
with determination, we can trust that we will achieve
our goals.
Tommi Björnman
President & CEO
Looking ahead, we see
some positive signals from
both the markets and our
customers. I am confident that
the ongoing improvement
measures and changes will
help us on our journey
towards profitable growth.
6 Suominen Annual Report 2023
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EBITDA margin
by 2025:
above
12%
Net sales growth
during the period:
above relevant
market growth
Gearing
during
the period:
40–80%
including the effect of
IFRS 16 Leases
2_columns
Net sales
2021 443.2
2022 493.3
2023
450.9
Net sales, EUR million
0
100
200
300
400
500
450.9
493.3
443.2
EUR
million
2023
2022
2021
1
15.8
0
5
10
15
20
0
10
20
30
40
50
2021
2022
2023
15.3
47.0
3_columns and line
2021
47
10.6
2022
15.3
3.1
2023
3.5
EUR
million %
Comparable EBITDA and EBITDA margin
3_2023 column
15.8
3
4_columns
Gearing, %
2021
30.4
2022
37.4
2023
35.3
Gearing, %
0
10
20
30
40
50
35.3
37.4
30.4
2023
2022
2021
5
Financial targets
Targets 2020–2025
How to get there?
GROWTH PROFITABILITY GEARING
Focus on the fast-growing sustainable
products category
Innovation and launching of
new products to capture market share
Targeted investments to improve
capabilities and increase capacity
Effective utilization of production lines
Margin improvement through
new products as well as production
and raw material efficiency
Continued fixed cost control
Balanced investment plan
Healthy cash flow from operations
7Suominen Annual Report 2023
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Key figures
FINANCIAL 2023 2022
Net sales, EUR million 450.9 493.3
Comparable EBITDA, EUR million 15.8 15.3
EBITDA, EUR million 11.2 14.3
Comparable operating profit, EUR million -2.8 -4.2
Profit for the period, EUR million -12.8 -13.9
Earnings per share, EUR -0.22 -0.24
Dividend, EUR 0.10* 0.10
Cash flow from operations, EUR million 30.7 14.0
Cash flow from operations per share, EUR 0.53 0.24
Capital expenditure, EUR million 11.2 9.7
Equity ratio, % 39.5 42.5
Equity per share, EUR 2.17 2.54
Gearing, % 35.3 37.4
Return on invested capital (ROI), % -4.1 -4.2
EMPLOYEES 2023 2022
Number of employees 673 717
Number of lost time accidents 6 2
ENVIRONMENT 2023 2022
Energy consumption, GJ 1,766,007 1,745,021
Greenhouse gas emissions, tons of CO₂ eq. 99,809 93,363
Water withdrawal, ML 6,825 6,478
Process waste to landfill, tons 5,080 5,227**
* Proposal by the Board of Directors to the Annual General Meeting
** Restated
2_columns
Net sales
2021 443.2
2022 493.3
2023
450.9
Net sales, EUR million
0
100
200
300
400
500
450.9
493.3
443.2
EUR
million
2023
2022
2021
1
4_columns
Gearing, %
2021
30.4
2022
37.4
2023
35.3
Gearing, %
0
10
20
30
40
50
35.3
37.4
30.4
2023
2022
2021
4
5_columns
Comparable
operating profit
2021
26.9
2022
-4.2
2023
-2.8
Comparable operating profit,
EUR million
-10
0
10
20
30
-2.8
-4.2
26.9
2023
2022
2021
6
-12.8
-0.40
-0.20
0.00
0.20
0.40
0.60
-20
-10
0
10
20
30
2021 2022 2023
-13.9
20.7
7_columns and line
Profit for the
period
Earnings per
share, EUR
2021
20.7
0.36
2022
-13.9
-0.24
2023 -0.22
Profit for the period, EUR million and
earnings per share, EUR
EUR
Earnings per share, EUR
EUR
million
7_2023 column
Profit for the
period
-12.8
-12.8
8
30.7
0.00
0.50
1.00
1.50
0
10
20
30
40
2021
2022
2023
14.0
11.1
8_columns and line
Cash flow
from
operations
Cash flow
from
operaAons
per share,
EUR
2021
11.1
0.19
2022
14.0
0.24
2023
0.53
Cash flow from operations, EUR million and
cash flow from operations per share, EUR
EUR
Cash flow from operations per share, EUR
EUR
million
8_2023 column
Cash flow
from
operations
30.7
9
6_columns
Dividend per share,
EUR
2021
0.20
2022
0.10
2023
0.10
Dividend per share, EUR
0.00
0.05
0.10
0.15
0.20
0.10
0.10
0.20
2023
2022
2021
* Proposal by the Board of Directors to
the Annual General Meeting
*
7
8 Suominen Annual Report 2023
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In-house
converting or
external converter,
e.g., wet wipe
manufacturer
Fiber producer
Nonwovens
manufacturer,
Suominen
Brand owner
Consumer
Primary
production
Private label
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.
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Value creation model
FINANCIAL RESOURCES
- Total equity: EUR 124.9 million
- Total liabilities: EUR 191.5 million
NATURAL RESOURCES
- Water 6,824,631 m
3
- Raw materials
- Wood-based 60%
- Oil-based 39%
- Other 1%
- Energy 1,766,007 GJ
- Natural gas 47%
- Electricity 36%
- Steam 17%
INTELLECTUAL CAPABILITIES
- Suominen brand and our way of operating
- R&D expenses EUR 3.9 million
- 15 R&D professionals
- 52 granted and 15 pending patents
- 58 trademarks and design patents
- Piloting facilities
- Technical know-how
- IT systems
SOCIAL RELATIONSHIPS
- Customer and supplier relations
- R&D cooperation with stakeholders
- Start-up network
- Manufacturing partners
- Professional networks
- Memberships in associations
- Local communities
MANUFACTURING RESOURCES
- Geographically and technically broad
manufacturing base
673 employees
7 production plants
on three continents
Net sales
EUR 450.9 million
SUOMINEN’S 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
efficient 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
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CUSTOMERS
- Innovations and new products
- Improved product performance
- Suominen brand value
- Customer satisfaction
EMPLOYEES
- Wages and salaries EUR 43.6 million
- Professional development
- Fair employment practices and equal opportunities
- Safe workplace
PARTNERS
- Spend on materials and services EUR 343.0 million
- Business growth
- Ethical business
- Interest to creditors
SHAREHOLDERS
- Dividend (Board’s proposal) EUR 5.8 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 +0.7 million
- Employment
PRODUCTS AND SOLUTIONS
- Nonwovens for wipes and other applications
WASTE
- Waste to landfill 5,080 metric tons
EMISSIONS
- Direct greenhouse gas emissions
44,495 metric tons of CO₂ eq.
- Indirect greenhouse gas emissions
55,314 metric 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 affect the world
around us.
Outputs
Impacts
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Market characteristics
Operating environment
Suominen is the global market leader in nonwovens for wipes and ranks
among the world’s largest producers of spunlace nonwovens. Suominen’s
main market areas are Europe and North America. Suominen also maintains
a strong presence in the South American markets.
Europe
In Europe, all consumer wipe categories
are highly fragmented and competitive.
Private lables are gaining share in the
European market.
EU’s Single-Use Plastics Directive and the
proposed Directive on Green Claims are
important drivers towards sustainability for
the nonwovens industry.
The 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 categories are
growing with particularly strong growth in
private labels. Household products have
a fairly big share in the wipes market.
Several states in the US have passed or
introduced bills to demand appropriate
disposal labeling to wipes packages.
The leading trends are transparency in
the value chain and 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 162.8 million, corresponding to 36%
of Suominen’s net sales in 2023. Suominen
has one site in Italy, one in Spain and
one in Finland. Suominen’s headquarters
is in Finland. In 2023, Suominen had
318 employees in Europe.
Net sales of the Americas business area
were EUR 288.0 million, corresponding
to 64% of Suominen’s net sales in 2023.
Suominen has three sites in USA and
one in Brazil. In 2023, Suominen had
355 employees in the Americas.
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The global demand for nonwovens is constantly growing.
The growth depends mainly on consumer demand,
which is a combination of the general economic situation
and consumers’ confidence in 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. The
growth in the demand for nonwovens has typically
exceeded the growth of gross domestic product by a
couple of percentage points.
Global megatrends shape Suominen’s operating
environment and affect our business.
The importance of sustainability
continues to grow
Megatrends such as climate change and environmental
degradation drive us to minimize the environmental
impacts of our operations, improve our raw material
efficiency and introduce increasing range of sustainable
products to the market.
The market for sustainable nonwovens is growing
globally and especially in Europe and North America.
Legislation and regulations as well as consumer behavior
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 reduce marine pollution. SUPD impacts many
end products made of nonwovens as many wipes are
traditionally made at least partially from raw materials
containing plastic. Labeling requirements under the
Directive for single-use products containing plastic
entered into force in 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 for more ecological and sustainable
nonwoven products is clear, and Suominen is well
positioned to respond to the growing demand to
help its customers to be more sustainable in their
product offering.
Demographic megatrends support our growth
Demographic megatrends, such as population growth,
growing middle class, aging populations, 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, this demographic is increasingly
interested in solutions that make daily routines easier
and less time-consuming. Increased consumption of
household wipes and beauty care wipes is an example of
this phenomenon.
New needs are emerging with aging populations
and changing healthcare models. The demand for
nonwovens used in, for example, medical applications
and incontinence products is increasing. On the other
hand, the need to find cost-effective solutions to combat
bacteria and viruses is also contributing to the increase in
demand for nonwovens in the healthcare sector.
Global instabilities cause uncertainty
We see some positive signals from the market and
customers, but the overall global economic uncertainty
and fierce competition continue to make the longer-term
visibility challenging. It remains to be seen how the current
economic climate impacts the end consumer demand and
consumer preferences regarding wipes. Historically, the
wipes market has been rather steady despite the general
economic situation.
Instabilities in Israel and lately in Suez Canal, and the war
in Ukraine continue to generate uncertainty globally.
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We execute our strategy and aim to
achieve our vision through our five
strategic focus areas. We implement our
Sustainability agenda as an integral part
of our strategy.
Operational excellence
We continuously improve the efficiency
and quality of our operations, promote
occupational health and safety of our
employees, and increase accountability
and cost awareness throughout
the organization.
Safety is a top priority for us, and we are
committed to protecting and improving
the health and safety of our employees.
We believe in preventive actions and that
a strong safety culture is created through
an open and continuous dialogue. In
2023, we initiated a safety campaign to
encourage all employees to stop and think
before acting.
We continue to work on our efficiency
and performance by systematically
developing our people, our processes
and operations. We have launched several
efficiency initiatives and actively share
best practices between our sites to drive
improvement in this area.
Sustainability leadership
We leverage our innovation and piloting
capabilities, 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
legislation and customers’ growing
interest towards more sustainable choices
as the main drivers. We are leading the
market change by actively developing
and introducing new products to meet
the growing demand. During 2023, we
launched 12 sustainable products and the
sales of sustainable products increased
79% compared to the base year of 2019.
Strategy
Our vision is to be the frontrunner for nonwovens innovation and
sustainability. Our strategic target is to grow and improve profitability
through sustainability, customer focus and efficiency. We pursue
growth by creating innovative and more sustainable nonwovens for
our customers and improve our profitability through more efficient
operations and a high performance culture. Our focus is on wipes.
We strengthen our capabilities in Europe and the Americas and
evaluate our opportunities in Asia.
Our target is to use resources
efficiently and to operate with
the smallest possible impacts
on the environment.
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Strategic
focus areas
Operational
excellence
Sustainability
leadership
Dierentiate
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 ecient 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
Our target is to use resources efficiently and to operate
with the smallest possible impacts on the environment. We
have set concrete reduction targets for four environmental
impact KPIs in our own operations: greenhouse gas
emissions, energy consumption, water consumption and
waste to landfill.
As part of our work on reducing greenhouse gas
emissions, all our European sites have shifted entirely to
fossil-free electricity in 2021 and our Paulínia site in Brazil
during 2023.
Differentiate with innovation and
commercial excellence
We offer best-in-class products and build close
relationships and collaboration with our key customers.
Our versatile and experienced R&D team together
with our pilot line capabilities enable our industry-
leading innovation and product development. A close
collaboration with customers plays an important role in
our innovation work. The share of new products of our
net sales reflects our strong ability to innovate and meet
15Suominen Annual Report 2023
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Investment project in Nakkila,
Finland to increase capabilities
in sustainable nonwovens
12 sustainable product launches
Sales of sustainable products
increased 79% compared to
base year of 2019
Silver-level rating from
second EcoVadis
sustainability assessment
Moving to carbon-free electricity
in Paulínia site in Brazil
Share of new products:
exceeded 35% of net sales
Strategic highlights of the year
the market needs – in 2023, the share of new products
exceeded 35 % of our net sales.
We made several commercial excellence improvement
actions during the year in order to reach the full potential
of our competitive advantages.
Great place to work
We concentrate on harnessing the organization’s positive
energy, passion and commitment to deliver results.
We are systematically developing employee engagement
and implementing targeted actions based on our global
employee engagement survey. In 2023, we conducted
the survey for the fourth consecutive year. The results
identified both positive areas and opportunities for
improvement. In the 2023 survey, we saw improvement in
nearly all of the survey areas.
We strive to build a high-performance culture in
which people are encouraged to exceed expectations
and are enabled to perform to their full potential. In
2023, we continued to support the development of our
personnel and teams with various development and
training programs.
Dual operating model
We optimize our operations through separate operating
models for our standard and specialty products close
to our customers in two customer focused regions –
Americas and Europe.
During the year, we have continued to strengthen our
capabilities in sustainable products, e.g., by finalizing an
investment project to enhance and upgrade one of our
production lines in Nakkila, Finland. We have also further
developed our supply chain management and operations
planning to even better support our target to optimize our
operations and to meet the world class level.
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Sustainability
Sustainability at Suominen…18
Managing sustainability…21
People and safety…22
Low impact manufacturing…28
Sustainable nonwovens…32
Corporate citizenship…35
Stakeholder dialogue…37
Tax management, tax strategy and footprint…39
Reporting principles…42
GRI index…43
GRI appendix…48
Our management approach…55
TCFD...56
Independent assurance statement…57
material sustainability topics for Suominen: eco-friendly
products, health and safety, energy efficiency, waste
prevention, financial stability, and employee engagement.
Evaluation of sustainability
To increase transparency on the development of the
Sustainability Agenda and ESG matters in general,
Suominen partakes in internal and external ratings. In
2022, Suominen launched an ESG Index that is publicly
available on our website. The tool is developed by
Suominen to offer an easy access to a comprehensive
summary of Suominen’s sustainability work, presenting
its strengths as well as areas of improvement. We aim to
develop the Index to reflect the continuously evolving
nature of sustainability. On top of this, Suominen
participated in the EcoVadis assessment for the second
time in 2023 and achieved a silver-level rating with
improvements especially in the areas of Labor & Human
Rights as well as Ethics compared to previous year.
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 different 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
Sustainability is an integral part of our strategy and thus,
we strive to continuously develop it and work towards
being a frontrunner in sustainable nonwovens. As a
part of this, we believe that it is vital to understand our
stakeholders’ perceptions of our impacts, risks, and
opportunities in relation to sustainability to serve the
whole value chain in the best possible way. Identification
of the most material aspects of sustainability helps us to
prioritize our work and efforts in this area.
In 2023, Suominen started the process to update its
materiality to take into consideration all our impacts, risks,
and opportunities throughout our value chain (double
materiality). The process includes internal workshops
with key experts and management, and stakeholder
engagement. In internal workshops, topics relevant to
the business of Suominen in all parts of the value chain
were listed and the negative and positive impacts of these
identified. Actual and potential impacts were identified
based on internal expertise and documentation, including
Suominen’s overall risk assessment, HSE assessment
and performance results and stakeholder surveys. The
topics were grouped based on evaluating the severity and
likelihood, which is based on the operating environment
and risks identified by the Executive Team. Stakeholder
engagement included a survey for stakeholders – such as
customers, employees, institutional investors, suppliers,
industry associations and owners – and interviews with
key stakeholders. The work is to be finalized during the
beginning of 2024 and will aid in the development of
our sustainability agenda and guide the future actions
to be taken.
The previous materiality assessment was conducted
in 2019, which is the basis for the current Sustainability
Agenda 2020–2025. The agenda is based on the six most
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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 trafficking 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 efficiently
as possible and strive for
minimization of waste in
production by recycling and finding alternative
outlets for non-recyclable waste. With our
product offering, 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 efficiency and
finding alternative low-carbon energy
sources. With our product offering,
we are contributing to this goal by
calculating the carbon footprint of our
products and developing solutions with
a smaller climate impact.
19Suominen Annual Report 2023
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Our sustainability targets and key performance indicators (KPIs)
INDICATOR TARGET FOR 2025 RESULT
People
and safety
Lost time accidents 0 6 in 2023
Employee engagement index 73% 66% in 2023
Sustainable
nonwovens
Number of sustainable
product launches¹
Over 10 per year 12 in 2023
Sales of sustainable products 50% increase in sales compared to
the base year 2019
79% increase compared
to the base year 2019
Corporate
citizenship
Coverage of renewed
Code of Conduct
100% of existing employees
and new hires
94% of all employees trained
by the end of 2023
Supplier assessment Raw material suppliers assessed
against supplier code
(based on risk assessment)
Process established
Low impact
manufacturing
Energy consumption
(GJ/t of product)
20% reduction
compared
to the base year 2019
2
No progress made in 2023
Process waste to landfill
(kg/t of product)
20% reduction
compared
to the base year 2019
No progress made in 2023
Water consumption
(m
3
/t of product)
20% reduction
compared
to the base year 2019
0.7% reduction compared
to the base year 2019
Greenhouse gas emissions
(t/t of product)
20% reduction compared
to the base year 2019
3
14.9% reduction compared
to the base year 2019
3
¹ Sustainable product launches include new sustainable product launches, re-launches and concepts related to sustainable products.
² Energy consumption figure for 2019 was restated.
³ Target is set for Scope 1 and 2 emissions (emissions from our own operations and purchased energy generation). The greenhouse gas figures for the base year 2019 were restated in the
2023 report due to a minor error in total emissions calculation.
20 Suominen Annual Report 2023
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Managing sustainability
Sustainability is an integral part of Suominen’s strategy,
and the management of sustainability is integrated into
business management. The highest decision-making
body on sustainability- and climate-related matters is the
Board of Directors. The Board of Directors has approved
Suominen’s Sustainability Agenda 2020–2025, including
sustainability-related targets. Progress in sustainability
targets is reported to the Board of Directors regularly.
Sustainability Agenda, related targets and supporting
policies are owned by the Executive Team. Sustainability
is on the agenda of the Executive Team on a regular basis,
which enables effective management of sustainability.
The Vice President, Communications & Sustainability,
is responsible for the sustainability at Suominen, and she
reports to the President & CEO. The Communications &
Sustainability function operating under her supervision is
responsible for the practical coordination and reporting
of sustainability activities. Suominen’s operations and
support functions are responsible for implementing the
company level sustainability initiatives to meet the targets.
In addition, each Suominen employee has an obligation
to perform their duties in compliance with the principles
concerning sustainability.
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People and safety
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.
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Our people
We continued to develop our people-related processes according to our
long-term plan. We developed our practices to identify, foster and reward
excellent performance and continued to drive a pay-for-performance
compensation model.
23Suominen Annual Report 2023
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means that 66% of the survey participants
responded favorably to those questions.
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, we ensure that our employees’
targets and actions are aligned with the
company’s strategy and objectives.
We continued to run our Performance
Development Process covering all white-
collar employees and Performance
Evaluation and Feedback process covering
all blue-collar workers. In 2023, 56%
of Suominen’s employees received
performance and career development
reviews in employee–manager discussions.
We strive to develop our processes
and practices to identify, foster and
reward excellent performance and
to drive a pay-for-performance
compensation model. In 2024, we
will focus on developing our selected
core and leadership competencies.
Further developing our recruitment and
onboarding processes is an important
long-term target for us. In addition, we aim
to strengthen and promote our employer
brand actively to increase employee
commitment, retention, satisfaction,
and attraction.
Promoting equal opportunities
and supporting professional
development
Suominen has nearly 700 employees,
representing more than a dozen
nationalities working in seven sites on
three continents. We recognize the
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 fourth consecutive year in 2023. The
response rate for the survey remained at
a strong level and was 80%.
The survey results identified both
positive areas and opportunities for
improvement. In the 2023 survey, we saw
improvement in nearly all of the survey
areas. The most significant improvement
appeared in feedback and recognition,
which covers themes like performance
evaluation, rewarding the right people and
addressing non-performance. Feedback
and recognition was identified as an area
for further development in the previous
survey, and the recent results confirm
us that we have taken effective steps in
the right direction. On the other hand,
employees’ confidence in the company’s
future success decreased slightly
from 2022.
The survey results are used as a basis
for our people-related development work.
Team-specific results are shared with the
team leaders, who will then review and
discuss them within their teams. Based
on the results, each site and function
leader will create a targeted, actionable
development plan for their respective
organizations and will follow up on the
progress. We are currently investigating
an opportunity to utilize pulse surveys in
people and team development.
Based on the global results, our
employee engagement index is 66%,
which is one percentage point higher
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
pride, and commitment. The result
24 Suominen Annual Report 2023
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9_columns
Number of
employees, average
2021
710
2022
717
2023
673
Number of employees
0
200
400
600
800
673
717
710
2023
2022
2021
10
business benefits of having a diverse
workforce and are committed to offering
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 and inclusion.
Career development and identifying
and developing the competencies that
are essential in reaching our strategic
objectives have been identified as
areas for improvement in our previous
global employee engagement surveys.
In 2023, we continued to execute
Suominen’s competency framework to
systematically support our employees
in their professional development. The
framework also strengthens our processes
for recruitment and succession planning
and enables the mapping of competencies.
In addition, we enhanced our competence
and leadership capabilities by increasing
human resources to individual and
organizational development.
We continued to support the
development of our personnel with various
development and training programs that
the manager and the employee have
identified together in their performance
673
employees
development discussions. In 2023, a
competition law compliance e-Learning
course was rolled out globally for selected
key roles. The course covers the main
rules of competition and antitrust laws as
well as the key principles and guidelines
outlined in Suominen’s Competition Law
Compliance Policy. Other trainings during
the year included management training
and various quality, safety and process
trainings for targeted roles.
Health and safety
The health and safety of Suominen’s
employees is our key priority. The
coverage of occupational healthcare was
100% of our employees in 2023. Suominen
aims to promote employee well-being by
sponsoring extracurricular activities for
employees, such as local running events.
In Finland and the USA, employees also
receive a monetary sport benefit.
We strive to develop our processes
and practices to identify, foster
and reward excellent performance
and to drive a pay-for-performance
compensation model.
25Suominen Annual Report 2023
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Safety
The health and safety of Suominen’s employees is
our key priority. We focus on accident prevention and
building a strong safety culture. Safety is one of our key
people-related targets, and our aim is to have zero lost
time accidents.
In 2023, six lost time accidents (LTA)
occurred at Suominen sites (two in 2022),
and three out of our seven sites were able
to reach the zero LTA target in 2023. The
accident frequency rate (AFR) was 4.50
(1.53), and the accident severity rate was
0.28 (0.06). Safety monitoring is part of our
daily activities, and we keep record of all
work-related accidents and near misses
and identify their causes.
The safety management systems are
certified according to the ISO 45001
standard in all of our seven sites*.
Our safety work
Suominen’s safety work is based on
preventive actions. We develop safety at
the workplace according to the principle
of continuous improvement and
implementation of best practices.
In improving safety, Suominen places
particular emphasis on influencing
attitudes, behavior, and operating models.
All Suominen employees take part in
safety training during their onboarding
period and, in addition, employees
in production roles receive regular
safety training.
Suominen has implemented a Behavior
Based Safety program that kept rolling
for the tenth year in a row in 2023. The
program emphasizes the individual’s own
responsibility in safety and focuses on
influencing the attitude and motivation
of individuals. The program includes
mandatory safety walks on a weekly
10_columns
Number of lost time
accidents (LTA), own
employees
2021
4
2022
2
2023
6
Number of lost time accidents (LTA),
own employees
0
2
4
6
8
10
6
2
4
2023
2022
2021
11
12_columns
Accident frequency
rate (AFR)
2021
3.04
2022
1.53
2023
4.50
Accident frequency rate (AFR)
0
1
2
3
4
5
4.50
1.53
3.04
2023
2022
2021
Number of accidents per 1,000,000
working hours
13
11_columns
Accident severity
rate (ASR)
2021
0.05
2022
0.06
2023
0.28
Accident severity rate (ASR)
0.00
0.10
0.20
0.30
0.28
0.06
0.05
2023
2022
2021
Number of absence days per 1,000
working hours
12
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CASE | People and safety
Safety campaign
started in all Suominen
locations
The health and safety of employees is
our key priority. We focus on accident
prevention and building a strong
safety culture. In 2023, we initiated
a safety campaign to remind our
employees about the importance of
safety every day. In the core of the
campaign is to remind and encourage
each employee to stop and think
before acting. The campaign also
emphasizes Suominen’s Life Saving
Rules. The campaign was well
received by the employees, and we
keep constantly working towards our
target of zero lost time accidents.
Indrit Dangaj
HSE Manager, Italy
basis. During the safety walks, employees
walk through the premises, identifying
both safe and unsafe behaviors and
conditions, and then engage in an open
discussion with other employees. The
findings are evaluated and subsequently,
corrective actions are defined and
scheduled, taking into account both
urgency and a risk assessment. Regular
monitoring of the progress of the assigned
actions is conducted to ensure effective
implementation. Over 21,600 safety walks
were performed globally in 2023.
Suominen has also implemented Life
Saving Rules that consist of six basic
norms that no one can break under any
circumstances. The rules are available in all
Suominen languages.
Safety is a regular topic in our
internal communications and on local
communication channels, such as
discussion boards and info screens, as
well as in internal meetings. In 2023, we
initiated a safety campaign to remind
employees about the importance of safety
every day and encourage each employee
to stop and think before acting.
* The production area of Windsor Locks’ site is certified according
to ISO 45001 by Ahlstrom.
Safety is a regular topic in our
internal communications and on local
communication channels, such as
discussion boards and info screens,
as well as in internal meetings.
27Suominen Annual Report 2023
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Low impact manufacturing
For Suominen, environmental responsibility means efficient utilization
of resources with the smallest possible impact on the environment.
We continuously strive to reduce the environmental impacts caused
by our operations.
28 Suominen Annual Report 2023
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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 82% 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 1.2% 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 2023, Suominen reduced its water
consumption by 0.7% per ton of product compared to the baseline.
0.99
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2021
2022
2023
0.94
0.80
17_columns and lines
Water
intake
Baseline Target
2021
0.8
1.0
0.8
2022
0.940
1.0
0.8
2023
1.0
0.8
Water consumption per ton of
product (indexed)
Baseline
Target 2025
17_2023 column
Water intake
0.99
4
16_pie
Surface water 60%
60
Municipal water
supplies 9%
9
Ground water 31%
31
Water intake by source in 2023
Surface water 60%
Municipal water supplies 9%
Ground water 31%
3
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 efficiency and the efficient 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 Cressa, Italy and Nakkila, Finland
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.
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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. We also
produce electricity using solar panels at one site.
Our target is 20% reduction in energy consumption per ton of product
by 2025, the baseline being 2019. In 2023, Suominen did not make
progress in its energy reduction target. To meet our energy efficiency
improvement targets, we continue to identify and implement energy
saving initiatives at our sites.
1.01
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2021
2022
2023
0.99
0.94
15_2023 column
Energy
consumpAo
n
1.01
15_columns and lines
Energy
consumpA
on
Baseline Target
2021
0.94
1.0
0.8
2022
0.99
1.0
0.8
2023
1.0
0.8
Energy consumption per ton of
product (indexed)
Baseline
Target 2025
2
14_pie
Natural gas 47%
47
Electricity 36%
36
Steam 17%
17
Energy consumption in 2023
Natural gas 47%
Electricity 36%
Steam 17%
1
13_pie
Oil-based 39%
39
Wood-based 60%
60
Others 1%
1
Raw materials purchased in 2023
Oil-based 39%
Wood-based 60%
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 different fiber materials, such
as cellulose-based fibers, polypropylene, and polyester, in the production
of nonwovens.
In 2023, the share of raw materials from renewable sources was 60%
(62% in 2022), with most of them being cellulosic fibers such as viscose
and pulp. We support responsible forest management practices, and we
offer 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 efficient utilization of raw
materials, and we continuously work to improve our material efficiency
even further. We also strive for the minimization of waste in our
production by recycling and finding alternative outlets for non-recyclable
production waste.
Waste to landfill
In waste management, Suominen’s first priority is to prevent waste
generation in the first place by improving its material efficiency.
Secondarily, we work actively with partners that can use or recycle our
waste material for different end uses.
Our target is 20% reduction in waste to landfill per ton of product by
2025, the baseline being 2019. In 2023, Suominen did not make progress
in its waste to landfill reduction target.
1.43
0.0
0.5
1.0
1.5
2021
2022
2023
1.47
1.27
18_2023 column
Tons
1.43
18_columns and lines
Tons Baseline Target
2021
1.27
1.0
0.8
2022
1.47
1.0
0.8
2023
1.0
0.8
Production waste to landfill
per ton of product (indexed)
Baseline
Target 2025
* Restated
*
*
5
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Greenhouse gas emissions
Suominen reports its direct greenhouse gas emissions (Scope 1), its indirect
greenhouse gas emissions from purchased energy production (Scope 2) and
other indirect greenhouse gas emissions (Scope 3) 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 related
to energy production are caused by the production of purchased electricity and
steam. Other indirect emissions are caused by those activities we are indirectly
responsible for in the whole value chain.
Our target is 20% reduction in greenhouse gas emissions, which consists of
Scope 1 and 2, per ton of product by 2025, the baseline being 2019. In 2023, our
result towards the target was 14.9% reduction per ton of product compared to the
baseline. Our aim is to set a target for Scope 3 as well.
As a part of our work on reducing greenhouse gas emissions, all our European
sites have shifted entirely to fossil-free electricity since 2021 and our Paulínia
site during 2023. This shift was a remarkable step towards our greenhouse gas
reduction target. Suominen is examining similar opportunities for its sites in North
America. We also have solar panels in Alicante, producing renewable electricity
for the site. These panels account for 5% of the total energy usage at the site.
Suominen is evaluating opportunities for more solar panel investments.
We are continuously looking for ways to decrease greenhouse gas emissions
from our operations.
0.85
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2021
2022
2023
0.79
0.90
19_2023 column
Tons of
CO
₂
e
0.85
19_columns and lines
Tons of
CO
₂
e
Baseline*
Targ et
2021
0.90
1.0
0.8
2022
0.79
1.0
0.8
2023
1.0
0.8
Greenhouse gas emissions
per ton of product (indexed)
Baseline*
Target 2025
* The figure for the base year
2019 is restated
The figures include direct
(Scope 1) and indirect (Scope 2)
greenhouse gas emissions.
6
CASE | Low impact manufacturing
Shifting to fossil-free
electricity at Paulínia site
Suominen’s site in Paulínia, Brazil has
successfully shifted to fossil-free electricity,
marking a milestone in our ongoing efforts
to reduce greenhouse gas emissions. The
journey to fossil-free electricity began already
in 2021, when all Suominen’s European sites
made the shift. We are constantly looking for
various ways to decrease the greenhouse gas
emissions from our operations.
Reducing the environmental impact of our
operations ensures that we can offer more
sustainable products to our customers. By
shifting to fossil-free electricity sources,
we can reduce the carbon footprint of our
products. As part of our sustainability work,
we are also calculating the carbon footprint
of our nonwovens as well as corporate level
annual emissions.
Juan Carlos Esteve
Director, HSEQ
31Suominen Annual Report 2023
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Sustainable nonwovens
The nonwovens market has rapidly changed towards sustainable alternatives.
Main drivers being consumers’ growing awareness of environmental issues and
legislation. EU’s Single-Use Plastics Directive drives global emphasis on plastic
free products. We at Suominen are well positioned to respond to this change.
We launched our first plastic-free product already over 15 years ago.
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Our product portfolio consists of a
wide range of sustainable nonwoven
products for different applications. In our
plastic-free offering, we have products
that are biodegradable, compostable, or
dispersible. 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.
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 over 10 sustainable
product launches per year. In 2023, our
share of sustainable nonwovens increased
by 79% (compared to 2019). The target of
sustainable product launches was very well
achieved; we had a total of 12 sustainable
product launches during 2023.
We are the frontrunner in sustainable
nonwovens, and we are constantly
developing new innovative solutions to the
market as well as improving and expanding
our current product offering. We launched
enhanced BIOLACE
®
Ultrasoft in 2023 to
match both the sustainability demands
and the quality expectations of our
customers and consumers. It is made of
plant based, plastic-free, biodegradable,
and compostable raw materials, while
maintaining softness appreciated by baby
and personal care markets.
Another great example of a frontrunner
product in terms of sustainability
is HYDRASPUN
®
Circula, our first
nonwoven made with recycled paper. It is
biodegradable as well as plastic-free and
can be used in multiple applications. The
product was created in cooperation with
our customer.
CASE | Sustainability
Suominen Sustainability & New
Fiber Seminar was a great success
Suominen has a strong background in R&D,
innovation and sustainable fibers. Based on this
foundation, Sustainability & New Fiber Seminar was
held at our site in Nakkila, Finland, in 2023. The
seminar gathered around fifty participants from
across the nonwoven production value chain.
The seminar was a remarkable success, receiving
over-the-top feedback. Positive feedback confirmed
us that there was a need for this kind of event, where
we could exchange ideas with the participants and
hear intriguing presentations from top professionals
in the field. The seminar program included a
visit to the Suominen piloting facility, where
participants attended a piloting demo with Bast
Fibre Technologies’ sero™ hemp fibers. Participants
also had the chance to see a demonstration of
a disintegration test at Suominen’s brand-new
Green Lab.
We are constantly
developing
new innovative
products to
the market.
Mari Rahkola
Senior Manager,
Business Development
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Continuous development
Sustainability is one of the key themes in our R&D. We are
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.
We are constantly researching new annual fibers in
general, as an example, nettle and hemp, and regenerated
cellulose in our New Fiber Center. Active cooperation with
our suppliers, customers and other players in the market
developing new innovative fibers is a cornerstone of our
product development. For example, Suominen and Bast
Fibre Technologies Inc. have cooperated for several years
to investigate alternative fibers, including hemp.
On top of researching new raw materials, we focus on
the end-of-life and biodegradability of renewable raw
materials. The Suominen Green Lab in Nakkila has been
in operation since 2022. The lab supports sustainable
product development and validates claims that products
are compostable. By continuously developing new and
innovative solutions with a reduced environmental impact,
we are able to provide a comprehensive offering 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 existing products. Since
2021, we have evaluated the environmental impacts of our
products by calculating their carbon footprints. By offering
products with a lower environmental burden without
compromising on quality, we can support our customers
in reducing 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.
CASE | R&D
HYDRASPUN
®
Circula won
EDANA’s INDEX™23 Award
Our HYDRASPUN
®
Circula won EDANA’s
INDEX™23 Award at INDEX™23 exhibition,
held in Geneva, Switzerland, in April 2023. The
product was selected from EDANA’s shortlisted
entries in the category of nonwoven roll goods,
showcasing how innovation and sustainability
are driving the nonwovens industry forward.
HYDRASPUN
®
Circula is Suominen’s first ever
dispersible nonwoven made with recycled paper.
The product is biodegradable and meets EDANA/
INDA GD4 flushability assessment. HYDRASPUN
®
Circula was developed specifically for moist
toilet tissues but can be used also in multiple
other applications. HYDRASPUN
®
Circula
demonstrates that innovations in nonwovens
can support the circular economy and
sustainable production. Receiving recognition
for that is very rewarding.
Avinav Nandgaonkar
Manager, R&D
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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, minimizing the environmental impact
of our own operations and being a good corporate citizen. We adhere
to high ethical standards in all our activities.
35Suominen Annual Report 2023
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Suominen is a global company
with operations on three
continents. We collaborate
with a significant number of
stakeholders in multicultural
environments every day. We develop our stakeholder
relationships in a fair and responsible way and strive for
transparency in our communication.
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 is committed to the UN
Global Compact corporate responsibility initiative and its
principles in the areas of human rights, labor, environment,
and anti-corruption. We have supported the initiative
since 2020.
Human rights
Suominen is committed to the United Nations Guiding
Principles on Business and Human Rights and the
International Labor Organization’s (ILO) Declaration on
Fundamental Principles and Rights at Work. Suominen’s
own Human Rights Policy reaffirms the company’s
commitment to respecting human rights.
Suominen does not tolerate any form of discrimination,
the use of child labor, or any other forced or compulsory
labor. Suominen works consistently to ensure that human
rights are respected throughout the value chain. Suominen
requires its raw material suppliers to commit to ethical
conduct, fully comply 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. 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. Employees are trained on the Code, and they need
to retake the course in every other year. By the end of
2023, 94% of Suominen’s employees had completed Code
of Conduct training.
Requirements for Suominen’s suppliers are described
in the Supplier Code of Conduct, which addresses 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.
Suominen is committed to advancing sustainability in
its supply chain. Aligned with the Sustainability Agenda’s
targets, Suominen has established a supplier sustainability
assessment process. In accordance with the process,
all raw material suppliers are invited to complete a
sustainability assessment through EcoVadis, and corrective
actions are subsequently defined to address any identified
issues. Suominen plans to further develop and enhance
the process in 2024.
Read more
Suominen‘s Code of Conduct
and the Supplier Code of Conduct
are available on our website at
www.suominen.fi.
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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 differ 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 for
transparent communication through various channels.
Suominen started a double materiality assessment in
2023. The process includes a stakeholder survey sent to
stakeholders – such as customers, employees, institutional
investors, suppliers, industry associations and owners –
and interviews with key stakeholders.
Suominen has conducted a materiality assessment
previously in 2019 and 2021. The results of the 2019
assessment served as the basis for our Sustainability
Agenda for the period 2020–2025 and the 2021
assessment ensured that the material topics, key
objectives and focus areas of the Sustainability Agenda
2020–2025 corresponded still to our stakeholders’
expectations and thus remained valid. Based on the
surveys, the six most material sustainability topics for
Suominen are ecofriendly products, health and safety,
energy efficiency, waste prevention, financial stability, and
employee engagement.
Stakeholder groups and their expectations, along with
Suominen’s way of meeting their expectations and the
engagement channels in use are presented in the table on
next page.
CASE | Suominen 125 years
Suominen celebrated
its 125th anniversary
Suominen celebrated its 125-year
history in 2023. Founded by
Mr. Juho Wiktor Suominen in
1898 as a tannery workshop in
Nakkila, Finland, the company has
grown into a global market leader
in nonwovens for wipes and one
of the world’s largest producers
of spunlace nonwovens over
the decades. The employees of
Suominen’s plant in Alicante,
Spain, gathered together to
celebrate the remarkable
milestone. All other sites held
similar occasions during the year.
Javier Hernandez
Plant Director, Alicante
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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 and inclusion
- Well-being and positive workplace
culture
- Strong safety culture, including
Behavior Based Safety program,
Life Saving Rules, and the ISO 45001
standard certifications
- Fair and equal compensation and
benefits
- Performance Development Process
including individual competence
development plans
- Recruitment policy, HR principles
- Open communication
- Code of Conduct
- Daily interaction
- Global intranet and internal
newsletter
- Global employee engagement
survey and local pulse surveys
- Performance development
discussions
- Stakeholder survey
- Trainings and e-Learning platform
Suppliers - Long-term partnership
- Open communication and
cooperation
- Payment for materials and services
- Continuous cooperation
- Smooth and efficient raw material
quality assurance process
- Supplier Code of Conduct
- General Terms and Conditions of
Purchase
- Meetings and other direct contacts
- Requests for tender and contracts
- Stakeholder survey
Customers - Product quality and safety
- Innovation and product
development
- Reducing environmental impact
- Responsible fiber sourcing
- Co-operation projects
- 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
- Low impact manufacturing
including resource efficiency targets
- Development of expertise
- Continuous cooperation and
on-site 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
- Innovation and product
development
- Sustainability
- Communication based on Finnish
law, EU directives, stock exchange
rules and other regulations
- Implementation of our strategy
aiming for growth and profitability
- Implementation of our Sustainability
Agenda
- Transparent reporting, sustainability
reporting in accordance with the
GRI standard
- Code of Conduct
- Annual General Meeting
- Quarterly and annual reporting
- Stock exchange and press releases
- Shareholder and analyst events
- Joint meetings
- 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
- Sustainability reporting in
accordance with GRI standard
- Code of Conduct
- Reporting and other external
communication
- Direct contacts
- Stakeholder survey
Society and local
communities
- Jobs and fair employment practices
- Responsible and sustainable
production
- Regulatory compliance
- Tax contribution
- Employment and fair compensation
- Recruitment policy and HR
principles
- Low impact manufacturing
including resource efficiency targets
- Good corporate citizenship
- Tax contribution
- Code of Conduct
- Media
- Reporting and other external
communication
- Site visits
- Stakeholder survey
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Tax management,
tax strategy and footprint
Tax management and tax strategy
Suominen has a tax policy as well as tax
guidelines approved by the Board of
Directors. All group companies have to
comply with the policy and guidelines.
The CFO as well as the Group finance
organization are responsible for the overall
tax management and planning. Day-to-day
local tax management is decentralized
within the finance organizations of
the subsidiaries in the countries where
Suominen operates.
In line with its Code of Conduct,
Suominen is committed to operating
in a responsible way and to complying
with ethically acceptable principles in
all its activities. This includes fulfilling all
reporting requirements and paying all
legally imposed direct, indirect, and other
taxes. Suominen aims to fully comply
with all statutory requirements and
compliance deadlines in the countries
where it operates.
Suominen seeks to carry out reasonable
and fair tax planning and tax compliance
in a manner that enables it to maintain a
stable and supportable tax position. When
it comes to the Group’s tax obligations, the
main target is to identify and acknowledge
the fiscal status and obligations of the
Group in advance. No artificial tax driven
arrangements are carried out, and all
transactions are business driven.
Suominen’s objective in tax risk
management is to avoid retroactive
changes to the tax positions it has taken
in any of its filings in all the jurisdictions it
operates in as well as to avoid retroactive
39Suominen Annual Report 2023
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tax payments, interest payments and any
tax payment related penalties. Therefore,
Suominen’s objective is that it will not
take or enter into tax positions which are
not considered supportable. However, as
Suominen’s objective is also to optimize
its tax charge in all jurisdictions it operates,
it can be possible that in certain situations
Suominen takes or enters into a tax
position which is not fully certain. In that
case, the uncertain positions are evaluated
by considering the risks and rewards
related to the tax position. The decision
of whether to enter into the uncertain tax
position is made based on a risk analysis.
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, and basically the
group companies sell the products they
manufacture directly to the end customer.
Due to the business model, Suominen pays
corporate income taxes in the countries
where the value from its production is
created.
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 of Suominen are abroad. Due
to this, the export sales of these companies
significantly exceed their domestic sales.
No value added tax is levied on export
sales, which leads into 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 differences
between taxation and accounting and are
recognized in the financial statements, are
not included in the tax footprint.
In 2023, Suominen employed on average
682 people (FTEs) 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
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
2023 2022
EUR thousand Finland Other countries Finland Other countries
Corporate income tax, tax on profit 321 -2,195 -1,318 -3,460
Property taxes -82 -1,704 -75 -1,277
Employer contributions and taxes -1,823 -10,338 -1,853 -10,592
VAT as expense -18 -5 -20 -3
Custom duties on export* – – – -5
Custom duties on import* -286 -939 -463 -1,785
Excise duties -52 -378 -119 -250
Other taxes and similar payments -42 -276 -40 -322
Received tax credits – 1,134 – 2,659
TOTAL -1,983 -14,701 -3,888 -15,035
Taxes and similar payments collected and paid
2023 2022
EUR thousand Finland Other countries Finland Other countries
Net VAT 3,498 -13,439 3,323 -6,962
Payroll taxes and similar payments collected
and paid -3,956 -9,513 -3,588 -9,374
Withholding taxes on various payments -186 -153 -453 -122
TOTAL -644 -23,106 -718 -16,457
* Custom duties are borne by the company importing or exporting goods. Custom duties are not collected and/or paid by some other taxpayer. For these reasons, custom duties are
reported as taxes borne.
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 are significantly
affected by tax losses generated 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.
Suominen is subject to group tax consolidation methods
in several countries based on each country’s tax laws and
regulations, which effectively means that Suominen’s
local companies are taxed on the local consolidated
taxable income.
Suominen’s corporate income tax paid in Finland is also
affected by withholding taxes collected in the country
of origin on the taxable income. As the income received
is from countries with which Finland has tax treaties to
avoid double taxation, these withholding taxes are credited
in the Finnish corporate taxation. For this reason, the
corporate income tax for 2023 is positive for Finland.
The group companies also pay property and real
estate taxes based on the land and buildings they own,
environmental and energy taxes as well as different
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.
Certain countries where Suominen operates grant
eligible companies tax credits, for example, in the form
of additional depreciation and amortization of assets.
The granted tax credits can in some countries be used in
offsetting them against different tax or similar payments.
41Suominen Annual Report 2023
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Reporting principles
Suominen publishes its sustainability report as part of its
Annual Report. The previous sustainability report, covering
2022, was published in March 2023.
The reporting period for all presented data is one
calendar year (January 1–December 31, 2023), and the
enclosed historical data encompasses the last two or three
years, depending on the topic.
Suominen reports in accordance with the GRI Standards
for the period of January 1-December 31, 2023. This
means our reporting includes GRI 1: Foundation 2021
and Topic Standards material to Suominen. There is no
applicable GRI Sector Standard. Suominen’s sustainability
information for 2023 was assured by an independent
assurance provider, PricewaterhouseCoopers Oy. The
limited assurance was done according to the ISAE 3000
Revised Standard. The scope of the assured information is
indicated in the independent assurance report on pages
57–58 of this report.
Suominen’s sustainability reporting is based on materiality.
A materiality assessment 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. In 2022, Suominen supplemented
earlier materiality assessments by also assessing the impacts
of its business. In 2023, Suominen started the process to
renew its materiality to reflect double materiality.
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 as headcount in GRI reporting and as FTE in our
financial statements, and more detailed human resources
data is derived from separately collected statistics. This data
represents the situation at the end of 2023. 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.
The Windsor Locks site in Connecticut, USA, is operated
jointly with Ahlstrom Oyj (former Ahlstrom-Munksjö Oyj).
Ahlstrom is responsible for the H&S management systems
at the site, and blue-collar employees are all in Ahlstrom’s
books, and thus they are not included into Suominen
headcount or safety reporting. These workers are reported
under workers who are not employees and their safety
figures. White collar employees at Windsor Locks are
directly employed by Suominen and thus accounted for.
Minimizing environmental impacts
Consolidated environmental and energy data covers
all our production units. Headquarters is 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 or
accepted estimations.
For environmental reporting for the Windsor Locks site,
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, 2 and 3 greenhouse gas emissions according
to the Greenhouse gas protocol. Scope 3 data is based
on consumption and spend information as well as some
estimations. The calculation principles and boundaries for
each indicator are explained in more detail in the GRI index.
42 Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
GRI index
GRI STANDARD LOCATION COMMENT
OMISSIONS AND
REASONS FOR
OMISSIONS
EXTERNALLY
ASSURED
GRI 2: General Disclosures (2021)
Organizational profile
2-1 Organizational details 3, 198
2-2 Entities included in the
organization’s sustainability
reporting
42, 125
2-3 Reporting period, frequency and
contact point
42, see
comments
Essi Ruuska, Senior Specialist, Sustainability
2-4 Restatements of information 51, 53
2-5 External assurance 42, 57–58 Suominen’s sustainability report 2023 has been
externally assured by an independent assurance
provider PricewaterhouseCoopers Oy.
Activities and workers
2-6 Activities, value chain and other
business relationships
4–6, 9–13
2-7 Employees 3, 23–25,
42, 48
X
2-8 Workers who are not employees 42, 48 The Windsor Locks plant in CT, USA, is co-operated
with Ahlstrom Oyj (former 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 different
maintenance and construction work, which are
typically seasonal in nature. There is limited seasonal
variation during vacation periods at our plants.
Only Ahlstrom employees
are reported. The
consolidation of all
other workers who are
not employees is being
developed.
X
Governance
2-9 Governance structure
and composition
60–65
2-10 Nomination and selection of
the highest governance body
60–65
2-11 Chair of the highest
governance body
63
2-12 Role of the highest governance
body in overseeing the
management of impacts
21, 86
2-13 Delegation of responsibility
for managing impacts
21, 86
2-14 Role of the highest governance
body in sustainability reporting
See
comments
Reviewed and approved by all relevant
Executive Team members and the President
and CEO.
2-15 Conflicts of interest 55, 79
2-16 Communication of critical
concerns
See
comments
Compliance officer reports regularly on reports
submitted through the SpeakUp line to the Audit
Committee. Other critical concerns that we become
aware of through, for example, customer feedback,
customer surveys or sustainability surveys, are
reported to the Executive Team as needed. Two
concerns were reported through the SpeakUp
channel, which were both communicated to the
Audit Committee.
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GRI STANDARD LOCATION COMMENT
OMISSIONS AND
REASONS FOR
OMISSIONS
EXTERNALLY
ASSURED
2-17 Collective knowledge of
the highest governance body
See
comments
The Board of Directors approves the Code of
Conduct and Sustainability Agenda. Sustainability
topics are discussed in the Board regularly and
progress in sustainability targets is reported to
the Board regularly.
2-18 Evaluation of the performance
of the highest governance body
63
2-19 Remuneration policies 70–78
2-20 Process to determine
remuneration
70–78
2-21 Annual total compensation ratio 48 X
Strategy, policies and practices
2-22 Statement on sustainable
development strategy
4-6
2-23 Policy commitments 20, 36,
37–38, 55
Code of Conduct
Supplier Code of Conduct
Code of Conduct is approved by the Board of
Directors and communicated to employees
through a Code of Conduct training. Training is also
mandatory for the Executive Team.
2-24 Embedding policy commitments 55
2-25 Processes to remediate
negative impacts
36, 86–89
2-26 Mechanisms for seeking advice
and raising concerns
55
2-27 Compliance with laws
and regulations
See
comments
There have been no significant instances of non-
compliance with laws and regulations in 2023.
X
2-28 Membership associations 49
Stakeholder engagement
2-29 Approach to stakeholder
engagement
37–38
2-30 Collective bargaining agreements 49 X
GRI 3: Material Topics (2021)
3-1 Process to determine
material topics
18 X
3-2 List of material topics 18, 20, 55 No significant changes in the organization’s
activities or business relationships; no changes in
material topics.
X
3-3 Management of material topics 19–20,
23–27,
28–31,
32–34,
35–36,
42, 55,
86–89
X
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GRI STANDARD LOCATION COMMENT
OMISSIONS AND
REASONS FOR
OMISSIONS
EXTERNALLY
ASSURED
ECONOMIC STANDARDS
GRI 201: Economic performance (2016)
201-1 Direct economic value generated
and distribted
49 X
GRI 205: Anti-corruption (2016)
205-1 Operations assessed for risks
related to corruption
101–102 Only % is reported as it
covers all operations.
X
205-2 Communication and training
about anti-corruption policies
and procedures
35–36,
88–89
Figures are not broken
down by region or
employee category as
coverage is so high.
X
205-3 Confirmed incidents of
corruption and actions taken
See
comments
There have been no confirmed incidents of
corruption reported in 2023.
X
GRI 206: Anti-competitive behavior (2016)
206-1 Legal actions for anti-competitive
behavior, anti-trust and
monopoly practices
See
comments
There have been no legal actions regarding anti-
competitive behavior or violations of anti-trust and
monopoly legislation reported in 2023.
X
ENVIRONMENTAL STANDARDS
GRI 301: Materials (2016)
301-1 Materials used by weight
or volume
30 Weight not reported due
to confidentiality reason.
Volume expressed in
percentage.
X
GRI 302: Energy (2016)
302-1 Energy consumption within
the organiaztion
30, 50, 42 X
GRI 303: Water and Effluents (2018)
303-1 Interactions with water as
a shared resource
29, 50 Suominen discusses water impacts on an ongoing
basis with local stakeholders. Water target is based
on internal benchmarking and it covers all sites,
including Alicante.
X
303-2 Management of water
discharge-related impacts
29, 50 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. The responsible
authority varies across sites, but is commonly the
water or wastewater authority.
Not reported in further
detail.
X
303-3 Water withdrawal 29, 42, 50 Breakdown of fresh water
and other water is omitted
as only fresh water is used.
X
303-4 Water discharge 29, 42, 50 Breakdown of fresh water
and other water is omitted
as only fresh water is used.
X
303-5 Water consumption 29, 42, 50 Change in water storage
is not reported as it is not
relevant for our operations.
X
GRI 305: Emissions (2016)
305-1 Direct (Scope 1) GHG emissions 31, 42, 51 X
305-2 Energy indirect (Scope 2)
GHG emissions
31, 42, 51 X
305-3 Other indirect (Scope 3)
GHG emissions
31, 42, 52 X
305-4 GHG emission intensity 31, 42, 51 X
305-5 Reduction of GHG emissions 31, 42, 51
45Suominen Annual Report 2023
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GRI STANDARD LOCATION COMMENT
OMISSIONS AND
REASONS FOR
OMISSIONS
EXTERNALLY
ASSURED
GRI 306: Waste (2020)
306-1 Waste generation and significant
waste-related impacts
30, 42, 53
306-2 Management of significant
waste-related impacts
30, 42, 53
306-3 Waste generated 30, 42, 53 Breakdown of hazardous
waste is omitted as the
amount of hazardous
waste accounts for less
than 0.1% of the total
amount of generated
waste, which is not a
material amount.
X
GRI 308: Supplier environmental assessment (2016)
308-1 New suppliers that
were screened using
environmental criteria
See
comments
100% of the new raw material suppliers were
screened using environmental criteria.
X
SOCIAL STANDARDS
GRI 401: Employment (2016)
401-1 New employee hires and
employee turnover
53 X
GRI 403: Occupational health and safety (2018)
403-1 Occupational health and safety
management system
23–25,
26–27, 42,
54
Our OH&S system covers all of our operational
sites as well as employees, workers who are not
employees and visitors. All sites are covered by ISO
45001, which also ensures that all sites follow local
law and regulation.
X
403-2 Hazard identification, risk
assessment, and incident
investigation
26–27, 54 X
403-3 Occupational health services 23–25, 42 Occupational health services are managed locally to
fulfill local requirements. Services vary accordingly.
X
403-4 Worker participation,
consultation, and communication
on occupational health and
safety
23–25,
26–27, 54
All European sites have formal joint management-
worker H&S committees. The sites in the Americas
have internal safety committees or utilize
monthly safety meetings to discuss concerns and
comments. Meeting frequencies vary across sites.
Responsibilities include to discuss health and
safety findings, the corrective plans and overall
improvement ideas and requirements. Decision-
making authority varies across sites.
X
403-5 Worker training on occupational
health and safety
26–27, 54 X
403-6 Promotion of worker health 23–25, 54 Non-occupational services provided vary across
sites. Access to services may for example be
provided through external providers or through
health insurance.
X
403-7 Prevention and mitigation of
occupational health and safety
impacts directly linked by
business relationships
See
comments
Our OH&S system covers all of our operational sites
and the outside workforce and visitors at those sites,
which means that they are subject to protocol as
employees, for example safety training and PPE.
X
403-9 Work-related injuries 26–27, 54,
55
Only the workers who are
not employees, reported
under 2-8, are reported.
X
46 Suominen Annual Report 2023
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GRI STANDARD LOCATION COMMENT
OMISSIONS AND
REASONS FOR
OMISSIONS
EXTERNALLY
ASSURED
GRI 404: Training and education (2016)
404-3 Percentage of employees
receiving regular performance
and career development reviews
23–25, 54 X
GRI 405: Diversity and equal opportunity (2016)
405-1 Diversity of governance bodies
and employees
54 Governance body reported
in numbers due to small
size.
X
GRI 406: Non-discrimination (2016)
406-1 Incidents of discrimination and
corrective actions taken
See
comments
Two incidents of discrimination were reported during
the reporting period. The first one is a case from the
previous year, which was reopened due to an appeal
and is now under review. The second case is also
under review by authorities.
X
GRI 414: Supplier social assessment (2016)
414-1 New suppliers that were
screened using social criteria
See
comments
100% of the new raw material suppliers were
screened using social criteria.
X
GRI 418: Customer privacy (2016)
418-1 Substantiated complaints
concerning breaches of
customer privacy and losses
of customer data
See
comments
There have been no substantiated complaints
concerning breaches of privacy or no identified
leaks, thefts or losses of customer data.
X
SUOMINEN’S OWN INDICATORS
Employee engagement index 20, 23–25
Number of sustainable
product launches
20, 32–34 X
Sales of sustainable products 20, 32–34 X
47Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
GRI Appendix
GRI 2-7 Employees
a. Total number of employees by employment contract by gender
Women Men
Permanent 162 482
Temporary 13 16
b. Total number of employees by employment contract by region
Europe Americas
Permanent 289 355
Temporary 29 0
c. Total number of employees by employment type by gender
Women Men
Full-time 162 492
Part-time 8 2
Non-guaranteed hours 5 4
Non-guaranteed hour workers work on a zero hour contract and are all based in Nakkila.
d. Total number of employees by employment type by region
Europe Americas
Full-time 303 351
Part-time 6 4
Non-guaranteed hours 9 0
GRI 2-8 Workers who are not employees
2023
Workers who are not employees 52
The figures reported for workers who are not employees include workers who work
on the Suominen lines in Windsor Locks, but are employed through Ahlstrom.
GRI 2-21 Annual total compensation ratio
Suominen strives to establish fair and competitive employee
compensation in each local market within our global operations
to effectively attract, retain, and motivate our talented workforce.
Presented below is the ratio of the annual total compensation of our
highest paid individual, former President & CEO, to the annual total
compensation of our median employee (excluding the highest paid
individual).
Our median employee was identified using Suominen’s globally
employed personnel (full-time, part-time, temporary, and seasonal
employees) employed on December 31, 2023.
The following is the annual total compensation of our median
employee, the annual total compensation of the highest paid individual
Petri Helsky, and the ratio of those two values:
- The 2023 annual total compensation of the median employee of
Suominen (excluding the the highest paid individual) was EUR 48,685
(2022: EUR 47,516).
- The 2023 annual total compensation for the highest paid individual
was EUR 1,256,506 (2022: EUR 1,051,360).
- For 2023, the ratio of the annual total compensation of the highest
paid individual to the median annual total compensation of our other
employees was approximately 26 to 1 (2022: 22 to 1).
- Change in annual total compensation ratio was approximately 6,8
to 1 (Percentage increase, highest paid individual 16,3 %, Median
percentage increase, Employees 2,4 %).
To identify our median employee compensation, we used Suominen’s
entire employee population on December 31, 2023 (December 31,
2022), and measured compensation based on base pay, short and long-
term incentive bonus payments, taxable benefits, extras, overtime and
possible one-time bonuses. Payments paid in foreign currency were
converted to EUR based on the exchange rates on December 29, 2023
(December 30, 2022).
The total compensation ratio reported by other companies may
not be comparable to the total compensation ratio reported above as
other companies may have different methodologies and assumptions in
calculating their own total compensation ratios.
48 Suominen Annual Report 2023
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GRI 2-28 Membership in associations
Suominen’s key memberships by country. Suominen is also involved in
different professional networks and chambers of commerce.
Corporate Finland Brazil Spain
EDANA Finnish Business
and Society
(FiBS)
ABINT
Nonwovens
Industry
Brazilian
Association
Agrupación
Textil Alcoyana
INDA
Association of
the Nonwoven
Fabrics Industry
Finnish Textile
and Fashion
AITEX
Asociación de
investigación
de la industria
textile
UN Global
Compact
ATEVAL
Asociación de
Empresarios
del Textil de
la Comunidad
Valenciana
GRI 2-30 Collective bargaining agreements
Overall, 67% 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. In North America, work conditions and terms of
employment are based on local, state and federal laws and common
practices in the region.
GRI 201-1 Direct economic value generated and distributed
Payments to providers of capital, EUR million
Interest expenses -4.4
Other financial expenses -2.5
Total payments to providers of capital -6.9
Payments to government, EUR million
Current income tax charge for the year and previous years -2.1
Other incomes taxes -0.1
Total payments to government -2.2
Retained in business, EUR million
0.6
Revenue, EUR million
Net sales 450.9
Other operating income 4.8
Revenues from financial investments 1.5
Total revenue 457.2
Operating costs, EUR million
Direct production expenses: materials and services -343,0
Indirect production expenses, R&D and SGA: services
and other expenses -35.6
Other operating expenses -2.7
Total operating costs -381.3
Employee wages, salaries and benefits, EUR million
Wages and salaries -43.6
Pensions -3.1
Other personnel expenses -19.5
Total employee wages, salaries and benefits -66,2
49Suominen Annual Report 2023
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Energy
GRI 302-1: Energy consumption within the organization
GRI 302-4: Reduction of energy consumption
Energy consumption, GJ 2023 2022 2021
Non-renewable fuel consumed
Natural gas 301-2 a 829,160 785,215 791,053
Other non-renewables 301-2 a 3,712 4,285 4,134
Renewable fuel consumed 302-1 b 0 0 0
Purchased electricity 302-1 c 631,670 646,056 688,686
Purchased steam 302-1 c 295,678 307,547 291,442
Produced electricity (Solar) 5,787 1,918 N/A
Total energy consumption 302-1 e 1,766,007 1,745,021 1,775,315
Change in total energy consumption 302-4 20,986 -30,293 -137,163
In 2023, the share of renewable electricity was 18%.
Energy sold outside organization is not reported as Suominen does
not generate any energy to be sold outside the organization. In 2022,
purchased steam (302-1 c) figure has been restated for the years 2019,
2020 and 2021 due to double counting. This influences the total energy
consumption, change in total energy consumption and the Energy KPI,
which were all revised. Energy figures are based on meters and invoices.
Water and effluents
GRI 303-3: Water withdrawal
GRI 303-4: Water discharge
GRI 303-5: Water consumption
Water withdrawal by source, ML
All areas Areas with water stress
2023 2022 2021 2023 2022 2021
Surface water 303-3 a&b 4,080 3,915 3,426 0 0 0
Ground water 303-3 a&b 2,147 1,833 1,683 0 0 0
Seawater 303-3 a&b 0 0 0 0 0 0
Third-party water 303-3 a&b 598 730 818 82 79 78
Total 6,825 6,478 5,927 82 79 78
Water discharge by type of destination, ML
All areas Areas with water stress
2023 2022 2021 2023 2022 2021
Surface water 304-4 a&c 5,600 5,163 4,849 0 0 0
Ground water 304-4 a&c 0 0 0 0 0 0
Seawater 304-4 a&c 0 0 0 0 0 0
Third-party water 304-4 a&c 422 495 563 17 17 15
Total 6,022 5,658 5,412 17 17 15
Water consumption 303-5 a&b 802 820 515 66 63 62
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. Water withdrawal
is based on meter readings and invoices. Water discharge amounts are
based on meter readings at all sites except for Alicante, where it is based
on an estimation.
In 2023, there were 5 reported incidents of non-compliance with
discharge limits. All incidents were recorded and investigated.
50 Suominen Annual Report 2023
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Emissions
GRI 305-1: Direct (Scope 1) GHG emissions
GRI 305-2: Energy indirect (Scope 2) GHG emissions
GRI 305-3: Other indirect (Scope 3) GHG emissions
GRI 305-5: Reduction of GHG emissions
Scope 1 & 2 greenhouse gas emissions, tons of CO₂e 2023 2022 2021
Direct (Scope 1) emissions 305-1 44,495 42,759 43,299
Biogenic Direct (Scope 1) emissions 305-1 0 0 0
Energy indirect (Scope 2) emissions – market-based 305-2 55,314 50,604 71,499
Energy indirect (Scope 2) emissions – location-based 305-2 71,682 71,954 72,605
Total emissions (Scope 1 and Scope 2 – market-based) 99,809 93,363 114,798
Change of total emissions 305-5 6,446 -21,435 -12,390
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. In 2022, Scope 2 location-based was restated for one plant
to include purchased steam as well. In 2023, 2019 total emissions were
restated due to a small error in the total amount calculation. Scope 2
emissions are calculated according to the Greenhouse Gas Protocol’s “A
Corporate Accounting and Reporting Standard” which 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 localbased emissions are derived from the US national statistics
or eGRID database. Suominen reports with an Operational control
approach.
51Suominen Annual Report 2023
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Suominen calculated its Scope 3 emissions for the first time in 2023.
Calculations are based on the Greenhouse Gas Protocol. The Scope
3 calculation includes 15 different emissions categories in total, and
all of these were evaluated whether they were relevant to Suominen.
11 categories were deemed material and included into calculations.
Excluded categories were from the upstream side: leased assets
and from the downstream side: use of sold goods, franchising, and
investments. The relevance of emission sources was determined
together with an external consultant.
The greenhouse gas emission category 1 is called Purchased goods
and services. Purchased goods are calculated based on material
amounts from an internal spend report, which is based on invoices.
Emissions factors used are based on supplier-specific emissions factors
received directly from the suppliers or are from Ecoinvent representing
the average country-specific or global production-related emissions
for the raw material. Purchased services are based on spend data, and
emission factors are applied from Exiobase data.
Capital goods (category 2) is based on spend data on investments.
Emissions factors are from Exiobase.
For purchased energy, under fuel- and energy-related activities
(category 3), the emissions are calculated based on the energy amounts
reported in Scope 1 and 2 as well as fuel usage for company vehicles.
Defra emissions factors are mainly used. For electricity, transmission
losses and residual mixes are included.
Data for upstream and downstream transportation and distribution
(categories 4 and 9) is from an internal reporting system (SAP), and
the calculation methodology is based on tonkilometers. Upstream
and downstream categorization is done based on Incoterms of each
shipment. Calculations are based on Defra factors.
Waste generated in operations (category 5) is based on the waste
amounts reported under GRI 306. Global waste calculations use mainly
Defra factors, and waste generated in Finland is based on factors
provided by local institutes and studies.
For business travel (category 6), the data is based on reports from
several travel agency service providers. Calculations are based on Defra
conversion factors. WTT emissions are included, and air travels include
RF emissions.
Employee commuting (category 7) is based on personnel data from
Suominen’s internal HR system. The calculations take into account that
white collars work partly remotely and during each workday while blue
collars work fully at the sites. Commuting calculations include the full
route from employees’ home to working facility and the return home.
Defra factors are used, and WTT emissions are included.
Processing of sold goods (category 10) is based on the volume of
sold product to customer. Specific emissions data was obtained from
some selected customers and are based on emissions per volume of
Suominen’s products processed. For customers with no firsthand data,
an average client-specific emission factor was used.
End-of-life treatment of sold goods (category 12) is based on
volumes sold to client categorized into estimated use applications and
disposal method for use case. Emissions factors used are the same as in
category 5.
Downstream leased assets (category 13) include two of Suominen’s
leased assets. Calculations are based on consumption data, and factors
are provided by suppliers and obtained from Defra database.
Scope 3 greenhouse gas emissions emissions, tons of CO₂e 2023
1. Purchased goods and services 364,674
2. Capital goods 2,808
3. Fuel- and energy-related activities 18,908
4. Upstream transportation and distribution 34,023
5. Waste generated in operations 3,881
6. Business travel 1,119
7. Employee commuting 1,278
Total upstream 426,691
9. Downstream transportation and distribution 8,762
10. Processing of sold goods 23,049
12. End-of-life treatment of sold goods 33,446
13. Downstream leased assets 1,394
Total downstream 66,651
Total Scope 3 greenhouse gas emissions 493,342
52 Suominen Annual Report 2023
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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) 2023 2022 2021
Non-hazardous waste - Waste to landfill 306-3 5,080 5,227 4,866
Non-hazardous waste - Energy recovery 306-3 518 531 566
Non-hazardous waste - Waste for recycling 306-3 3,702 4,297 3,607
Non-hazardous waste - Waste to re-use 306-3 732 851 272
Non-hazardous waste - Waste to incineration 306-3 0 0 2
Hazardous waste 306-3 7 10 20
Total waste generated 10,039 10,916 9,333
Figures (except for waste to landfill) for 2023, 2022 and 2021 exclude Windsor Locks site.
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 the suppliers’ sites.
After Suominen’s production site, nonwovens will be converted into
single-use products, such as wipes and products, and will be properly
packed. Eventually, the nonwoven 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. In waste management, Suominen’s
first priority is to prevent waste generation in the first place by improving
its material efficiency and material circularity in its own operations.
Secondarily, we work actively with partners that can reuse our waste
material for different 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 prevent waste. Starting in 2021, waste reporting was
updated to GRI 306 Waste (2020). In 2023, waste to landfill figures were
corrected for 2022, 2021 and 2020 as it was discovered that not all
fractions of waste to landfill were reported at one site. This has an effect
on the total waste generated. No corrected figure for 2019, which is the
base year for the waste to landfill KPI, was available, thus it has not been
restated. Amounts are based on invoices and estimates.
GRI 401-1 New employee hires and
employee turnover
Employee distribution and turnover
Europe Americas Total
Number of employees
By age group
Under 30 43 39 82
30–50 162 196 358
Over 50 113 120 233
By gender
Women 87 88 175
Men 231 267 498
Number of new hires
By age groups
Under 30 12 47 59
30–50 25 86 111
Over 50 5 36 41
By gender
Women 17 35 52
Men 25 134 159
Employee turnover
By age group
Under 30 17 36 53
30–50 42 80 122
Over 50 42 43 85
By gender
Women 20 26 46
Men 81 133 214
Total employee turnover rate 32% 45% 39%
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GRI 403-9 Work-related injuries
The number and rate of fatalities as a result of work-related injury
The number and rate of high-consequence work-related injuries
(excluding fatalities)
For all employees 2023 2022 2021
Number of fatalities 403-9 a 0 0 0
Rate of fatalities 403-9 a 0 0 0
Number of high-
consequence injuries 403-9 a 0 0 0
Main type of injuries for employees are strains, cuts and bruising and
majority are related to hands.
Work-related incidents are entered into an internal safety system.
Incidents are reviewed in safety and production meetings, depending
on site, where corrective actions are discussed, including root causes
and corrective actions. Information about incidents is shared across
plants to foster pre-emptive actions. Hazards posing a risk for injury
are identified as a part of safety walks and safety assessments, which
take into consideration severeness and likelihood. Our health & safety
management systems are audited at every site on a regular basis.
2023 2022 2021
The number of hours
worked by all
employees 403-9 a 1,334,435 1,307,911 1,316,162
The figures reported for workers who are not employees include
workers who work on the Suominen lines in Windsor Locks but are
employed through Ahlstrom.
For workers who are not employees 2023
Number of fatalities 403-9 b 0
Rate of fatalities 403-9 b 0
Number of high-consequence injuries 403-9 b 0
Rate of high-consequence injuries 403-9 b 0
Number of recordable work-related injuries 403-9 b 3
Rate of recordable work-related injuries 403-9 b 27.1
Main type of injuries for workers who are not employees
are cuts and strains.
2023
The number of hours worked by workers
who are not employees 403-9 b 110,824
GRI 404-3 Percentage of employees receiving
regular performance and career development
reviews
Percentage of employees who have received regular performance
and career development reviews
Men Women
White collar 75% 82%
Blue collar 51% 15%
Due to changes at the Bethune plant during 2023, some annually
occuring processes were not carried out, including performance
reviews, which affects the low percentages of blue collar employees.
GRI 405-1 Diversity of governance bodies
and employees
Diversity of Executive Team
By age group Men Women
Under 30 0 0
30–50 2 0
Over 50 5 0
Diversity of employees
By gender White collar Blue collar
Women 17% 9%
Men 22% 52%
By age group White collar Blue collar
Under 30 2% 10%
30–50 23% 31%
Over 50 15% 20%
54 Suominen Annual Report 2023
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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 and integrity. The purpose of
the management method is to ensure the implementation of the strategy and the achievement of the targets as planned.
Impacts and
material topics
Employment, occupational
health and safety, training,
diversity, non-discrimination
Water, emissions, energy,
waste, materials
Sustainable products and
sales
Anti-corruption & bribery,
anti-competitions, supplier
assessments
Policies and
commitments
- Code of Conduct
- Suominen HR principles and
policies
- Compensation and benefits
policy
- Safety principles and Behavior
Based Safety program
- ISO 45001 in all plants
- Privacy policy
- Recruitment policy
- Travel and expense policy
- Information security
guidelines
- Human Rights Policy
- Code of Conduct
- ISO 14001 certification
in all plants
- ISO 9001 in all plants
- ISO 50001 in Alicante,
Cressa, Mozzate and
Nakkila plants
- Local environmental
policy in all plants
- Supplier Code of Conduct
- Suominen offers
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
- SpeakUp 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 the
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 & Sustainability 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. Furthermore, 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, external audits,
including ISO 45001, 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,
employee exit surveys
Compliance, external
audits, including
ISO 9001:2015,
ISO 14001:2015 and
ISO 50001 audits, incident
reports and monitoring
and evaluating our KPIs
Compliance, audits by
customers, monitoring
and evaluating our KPIs,
audits on our supply chain,
EcoVadis supply chain
assessments
Compliance and
evaluation of the efficiency
of our policies
55Suominen Annual Report 2023
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TOPIC TCFD RECOMMENDED DISCLOSURE SUOMINEN’S RESPONSE LOCATION FOR INFORMATION
Governance a) Descrice the Board’s oversight of
climate-related risks and opportunities
The highest decision-making body in
sustainability and climate related matters,
covering also risks and opportunities, is the
Board of Directors.
p. 21
b) Describe management’s role in
assessing and managing climate-
related risks and opportunities
President & CEO has overall responsibility of
the climate-related issues in all of Suominen’s
operations. Sustainability Agenda, related
targets and supporting policies are owned by
the Executive Team.
p. 21
Strategy a) Describe the climate-related risks
and opportunities the organization has
identified over the short, medium, and
long term
Climate-related risks are part of Suominen’s
risk management process, which is based
on Suominen’s Risk Management Policy.
To mitigate climate-related risks, Suominen
has in its Sustainability agenda set concrete
targets and action plans to minimize its
environmental impacts.
p. 98–101
b) Desribe the impact of climate-
related risks and opportunities on the
organization’s businesses, strategy and
financial planning
c) Desribe the resilience of the
organization’s starategy, taking into
consideration different climate-related
scenarios, including a 2 °C or lower
scenario
Suominen reports its Scope 3 emissions
for the first time in 2023 and will renew
its emission reduction targets in the near
future. This work is a basis for future scenario
planning.
Risk
Management
a) Desribe the organization’s process
for identifying and assessing climate-
related risks
Suominen’s risk management process
is based on systematic and periodic risk
assessments, where key risks are identified
and risk management actions captured,
including climate-related risks. The process
is managed by Suominen’s Risk Management
Officer. 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 yearly
against Suominen’s strategic objectives.
p. 86
b) Desribe the organization’s process
for managing climate-related risks
c) Desribe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organizations overall risk
management
Metrics and
Targets
a) Disclose the metrics used by the
organization to assess climate-related
risks and opportinities in line with its
strategy and risk management process
Suominen calculates its emissions for Scope
1, 2 and 3 according to the Greenhouse Gas
Protocol. A reduction target is in place for
Scope 1 & 2, and we are looking into setting
a target for Scope 3 as it accounts for around
83% of our total emissions. We also have
targets in place for waste to landfill as well as
water and energy consumption.
p. 20
b) Disclose Scope 1, Scope 2 and if
appropriate Scope 3 greenhouse gas
(GHG) emissions and the related risks
Information available in GRI appendix. p. 51–52
c) Describe the targets used by the
organization to manage climate-related
risks and opportinities and performance
against targets
Suominen has concrete targets in its
Sustainability Agenda, and progress is reported
annually.
p. 20
Task Force on Climate-related Financial Disclosure (TCFD)
56 Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
Independent practitioner’s
limited assurance report
To the Management of Suominen Corporation
We have been engaged by the Management of Suominen
Corporation (hereinafter also the “Company”) to perform
a limited assurance engagement on selected sustainability
information for the reporting period 1 January 2023 to 31
December 2023, disclosed in the Sustainability section
of Suominen Annual Report 2023 presented GRI-index
(hereinafter the Selected sustainability information).
Selected sustainability information
The selected sustainability information within the scope of
assurance covers:
- Indicators as set out in GRI Standards of the Global
Reporting Initiative – standards and Suominen
Corporation’s internal reporting instructions identified in
Suominen Corporation’s Annual Report 2023 presented
GRI-index.
Management’s responsibility
The Management of Suominen Corporation is responsible
for preparing the Selected sustainability information in
accordance with the reporting criteria as set out in the
GRI Standards of the Global Reporting Initiative and
Suominen Corporation internal reporting instructions
described in the Sustainability section of Suominen Annual
Report 2023.
The Management of Suominen Corporation is also
responsible for such internal control as the management
determines is necessary to enable the preparation of
the Selected sustainability information that is free from
material misstatement, whether due to fraud or error.
Practitioner’s independence and quality
management
We have complied with the independence and other
ethical requirements of the International Code of Ethics
for Professional Accountants (including International
Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), which is
founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and
professional behavior.
PricewaterhouseCoopers Oy applies International
Standard on Quality Management (ISQM) 1, which requires
the firm to design, implement and operate a system of
quality management including policies or procedures
regarding compliance with ethical requirements,
professional standards and applicable legal and
regulatory requirements.
Practitioner’s responsibility
Our responsibility is to express a limited assurance
conclusion on the Selected sustainability information
based on the procedures we have performed and
the evidence we have obtained. We conducted our
limited assurance engagement in accordance with the
International Standard on Assurance Engagements (ISAE)
3000 (revised) “Assurance Engagements Other than
Audits or Reviews of Historical Financial Information”,
and, in respect of greenhouse gas emissions, International
Standard on Assurance Engagements (ISAE) 3410
“Assurance Engagements on Greenhouse Gas Statements”.
These Standards require that we plan and perform the
engagement to obtain limited assurance about whether
the Selected sustainability information is free from
material misstatement.
In a limited assurance engagement, the evidence-
gathering procedures are more limited than for a
reasonable assurance engagement, and therefore less
assurance is obtained than in a reasonable assurance
engagement. An assurance engagement involves
performing procedures to obtain evidence about
the amounts and other information in the Selected
sustainability information. The procedures selected
depend on the practitioner’s judgment, including an
57Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
assessment of the risks of material misstatement of the
Selected sustainability information.
Our work consisted of, amongst others, the following
procedures:
- Interviewing senior management of the Company.
- Conducting remote site visits to Cressa site in Italy and
Windsor Locks site in USA.
- Interviewing employees responsible for collecting and
reporting the information presented in the Selected
sustainability information at the group and site level.
- Testing the accuracy and completeness of the
information from original documents and systems on
a sample basis.
- Testing the consolidation of information and performing
recalculations on a sample basis.
- Considering the disclosure and presentation of the
Selected sustainability information.
Limited assurance conclusion
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 Suominen
Corporation’s Selected sustainability information for
the reporting period 1 January 2023 to 31 December
2023 is not properly prepared, in all material respects,
in accordance with the Reporting criteria.
When reading our limited assurance report, the
inherent limitations to the accuracy and completeness
of sustainability information should be taken into
consideration.
Our assurance report has been prepared in accordance
with the terms of our engagement. We do not accept, or
assume responsibility to anyone else, except to Suominen
Corporation for our work, for this report, or for the
conclusions that we have reached.
Helsinki, 9 February 2024
PricewaterhouseCoopers Oy
Mikael Niskala
Partner
Sustainability Reporting & Assurance
58 Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
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 by the 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 at
www.suominen.fi.
Corporate Governance
Statement of Suominen
Corporation for 2023
The Audit Committee and the Board of Directors of
Suominen (the “Board”) have reviewed this Statement.
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 at www.suominen.fi.
Suominen’s governing bodies
Suominen’s decision-making bodies are the General
Meeting of Shareholders, the Board with its two
permanent Committees and one temporary Committee,
and the President & CEO (the “CEO”), supported by the
Executive Team. Suominen’s decision-making bodies and
Auditor
Audit
Committee
Personnel &
Remuneration
Committee
Strategy
Committee
General Meeting of Shareholders
President & CEO
Executive Team
Board of Directors
Shareholders’
Nomination
Board
Internal
Audit
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their duties and responsibilities are governed by applicable
Finnish laws and regulations, the Code, the Company’s
Articles of Association, and the Charters of the Board and
its Committees.
General Meeting of Shareholders
Suominen’s highest decision-making body is the General
Meeting of Shareholders, where shareholders exercise
their decision-making power.
The Annual General Meeting is held annually by the end
of April on a date determined by the Board. 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 and
decision on their remuneration,
- discharging the members of the Board and the CEO
from liability, and
- election of the auditor and decision on the auditor’s
compensation.
Suominen publishes a notice of the General Meeting 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 General Meeting, a shareholder
must inform the Company of the participation at the
latest on the date mentioned in the notice of the General
Meeting. The date may not be earlier than ten days before
the meeting.
Annual General Meeting in 2023
The Annual General Meeting was held in Helsinki on April
3, 2023. A total of 33 shareholders representing 61% of
the Company’s shares and votes were represented in the
meeting. The Annual General Meeting documents are
available on Suominen’s website at www.suominen.fi.
Shareholders’ Nomination Board
Suominen has a permanent Shareholders’ Nomination
Board established by the 2013 Annual General Meeting.
The Nomination Board is responsible for preparing
and presenting to the Annual General Meeting and,
if necessary, to an Extraordinary General Meeting,
proposals on the remuneration of the Board, the number
of members of the Board and on the members and the
Chair of the Board. In addition, the Nomination Board
is responsible for seeking potential successors for the
Board members.
The Nomination Board consists of four members, three
of which are appointed annually by the Company’s three
largest shareholders who appoint one member each. The
largest shareholders are determined annually on the basis
of the registered holdings in the Company’s shareholders’
register held by Euroclear Finland Ltd on the first working
day in September. The Chair of Suominen’s Board of
Directors serves as the fourth member of the Nomination
Board. The Nomination Board elects the Chair of the
Nomination Board from among its members.
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 2023
Shareholders’ representatives on the Nomination Board
on December 31, 2023 were Lasse Heinonen, representing
Ahlstrom Capital B.V., and Mikael Etola, representing both
Oy Etra Invest Ab and Etola Group Oy. Jaakko Eskola,
Chair of Suominen’s Board of Directors, acted as the third
member of the Nomination Board. Lasse Heinonen acted
as the Chair of the Nomination Board.
The Nomination Board decided to invite Peter Seligson,
Chair of the Board of Directors of A. Ahlström Corporation,
to attend the Nomination Board’s meetings as an advisor.
In 2023 the Nomination Board convened six times. The
attendance rate at the meetings was 100%.
The Nomination Board submits its proposals on the
Board composition and remuneration to Suominen’s
Board of Directors annually no later than on February 1,
prior to the Annual General Meeting.
Board of Directors
The main objective of the Board is to direct Suominen’s
strategy in a way that, in the long run, it enables the
delivery of the financial targets set for Suominen and
maximizes shareholder value while simultaneously taking
into account the expectations of key stakeholders.
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The Board is responsible for the administration and
proper organization of Suominen’s operations and 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 Chair and members of the Board 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.
Main duties
The duties of the Board are defined in Finnish laws and
regulations, Suominen’s Articles of Association, the
Finnish Corporate Governance Code and the Charter
of Suominen’s Board of Directors. 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 Company’s annual business plan and
sustainability agenda,
- to approve the Code of Conduct and key corporate
policies,
- to approve major business acquisitions, divestments,
investments and 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 effectiveness of its management,
- to ensure continuity of business operations by
overseeing the succession planning of the Executive
Team,
- to decide on the Company’s share-based long term
incentive schemes,
- to approve the Remuneration Policy and the
Remuneration Report,
- to approve the Company’s financial reports, including
annual accounts, interim reports, report by the Board
of Directors and financial statement releases, and the
Corporate Governance Statement,
- to ensure that the Company has adequate planning,
information and control systems and resources for
monitoring results and managing risks,
- to monitor evaluation and management of significant
risks relating to Suominen’s strategy and business
operations,
- to convene General Meetings of Shareholders,
- to establish a dividend policy and make a proposal on
the 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 of
Shareholders.
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Board of Directors in 2023
The 2023 Annual General Meeting elected six members to the Board.
The term of office of the members of the Board ends at the close of the Annual General Meeting 2024.
Board member Member since Born Nationality Education Main occupation
Share ownership on
December 31, 2023
Jaakko Eskola 2021, Chair since 2021 1958 Finnish M.Sc. (Eng.) Board professional 26,166
Andreas Ahlström 2015,
Deputy Chair since 2020
1976 Finnish M.Sc. (Econ. and
Business Adm.)
Investment Director,
A. Ahlström Corporation
26,792
Aaron Barsness 2022 1973 U.S. and
Swedish
BA (Biology and
Environmental Studies)
CMO, Fazer Group 5,459
Björn Borgman 2020 1975 Swedish M.Sc. (Industrial
Engineering)
CEO, HL Display AB 24,902
Nina Linander 2020 1959 Swedish B.Sc. (Econ.), MBA Board professional 27,631
Laura Remes 2023 1980 Finnish M.Sc. (Tech.) VP, Strategy and Business
Development, UPM Fibres
2,956
Until April 3, 2023
Laura Raitio 2015 1962 Finnish Licentiate of Technology Board Professional
Independence of the Board members
The Board has evaluated the independence of its
members. All members are independent of the Company.
All members are also independent of the significant
shareholders of the Company, with the exception of
Andreas Ahlström, who acts as Investment Director at
A. Ahlström Corporation. The largest shareholder of
Suominen, Ahlstrom Capital B.V., is a group company of A.
Ahlström Corporation.
Meeting practice
The Board convenes under the direction of the Chair of
the Board or, if the Chair is unable to attend, the Deputy
Chair of the Board. Principally the matters are presented
by the CEO of the Company.
In 2023 the Board convened 15 times, of which eight
times were per capsulam. The attendance rate at the
meetings was 100%. The participation of each individual
member is presented in the following table.
Name Participation
Jaakko Eskola Chair 15/15
Andreas Ahlström Deputy Chair 15/15
Aaron Barsness Member 15/15
Björn Borgman Member 15/15
Nina Linander Member 15/15
Laura Remes Member 11/11
Until April 3, 2023
Laura Raitio Member 4/4
Board evaluation
The Board conducted an annual self-assessment of
its operations and working methods during the year
2023. The assessment was conducted internally. The
results of the assessment were reviewed and discussed
within the Board. The results were also presented to the
Shareholders’ Nomination Board.
Additionally, at the end of most of its meetings, the
Board assesses the preparations for the meeting, the
course of the meeting and its own operations in line with
the principle of continuous development.
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Board diversity principles
At Suominen, diversity has been recognized as an essential
success factor. Diversity in the Board’s competencies,
experience and opinions promotes openness to new
ideas and helps the Board in effectively supporting and
challenging the Company’s management. Furthermore,
diversity promotes open discussion and integrity
in decision making, good corporate governance,
and effective supervision of both the Board and the
management, and it also supports succession planning.
The Shareholders’ Nomination Board evaluates the
number of members and composition of the Board and
its competence requirements in 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 on the board composition to the General
Meeting of Shareholders is based on the qualifications and
competencies of each candidate. In addition, candidates
must also have the possibility to devote sufficient amount
of time to Board work.
Board committees
The Board has two permanent committees: the Audit
Committee and the Personnel and Remuneration
Committee. In its meeting on December 13, 2023, the
Board established a temporary Strategy Committee, which
shall remain in place until otherwise decided by the Board.
All three 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, financial reporting
and internal control systems and in monitoring the
activities of the internal and 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 power unless the Board resolves
otherwise on certain individual matters.
The Chair and members of the Audit Committee are
elected annually by the Board from among its members.
The 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 2023
The Audit Committee in 2023 consisted of Nina Linander
(Chair), Andreas Ahlström and Laura Remes (from April
3, 2023 onwards). Laura Raitio acted as a member of the
Audit Committee until April 3, 2023.
In 2023 the Audit Committee convened four 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 4/4
Andreas Ahlström Member 4/4
Laura Remes Member 3/3
Until April 3, 2023
Laura Raitio Member 1/1
20_pie
Males 67%
67
Females 33%
33
Gender
Males 67%
Females 33%
7
21_pie
41–50 years 67%
67
51–60 years 0%
0
61–70 years 33%
33
Age
41–50 years 67%
51–60 years 0%
61–70 years 33%
8
22_pie
Less than 1 year 17%
17
1–4 years 67%
67
4–8 years 0%
0
More than 8
years 17%
17
Tenure
Less than 1 year 17%
1–4 years 67%
4–8 years 0%
More than 8 years 17%
9
Board Diversity
(December 31, 2023)
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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
Executive Team members. The Committee prepares for
the Board matters that fall under its areas of responsibility,
but it does not have independent decision-making power
unless the Board resolves otherwise on certain individual
matters.
The Chair and members of the Personnel and
Remuneration Committee are elected annually by
the Board from among its members. The Committee
comprises at least three members. The members of
the Personnel and Remuneration Committee must be
independent of the Company.
Personnel and Remuneration Committee in 2023
The Personnel and Remuneration Committee in 2023
consisted of Jaakko Eskola (Chair), Aaron Barsness and
Björn Borgman.
In 2023 the Personnel and Remuneration Committee
convened five times. 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 5/5
Aaron Barsness Member 5/5
Björn Borgman Member 5/5
Strategy Committee
The Strategy Committee supports and advises the Board
and the Company’s management in strategic decisions
and initiatives and in other matters pertaining to the
Company’s strategy. The Committee’s role is advisory,
and it has no decision-making power with respect to
strategic decisions.
The Chair and members of the Strategy Committee are
elected annually by the Board from among its members.
The Committee comprises at least three members.
Strategy Committee in 2023
In its meeting on December 13, 2023, the Board
established the Strategy Committee and elected the
members of the Committee. Laura Remes was elected as
the Chair of the Committee and Andreas Ahlström and
Aaron Barsness as members of the Committee.
The Strategy Committee did not have any meetings
in 2023.
President & CEO
The CEO (Managing Director) of Suominen is appointed
by the Board. The CEO is responsible for the day-to-day
operations of the Company in accordance with the
Finnish Companies Act and the guidelines and instructions
provided by the Board, and for ensuring that the
Company’s accounting practices comply with the law
and that its assets are reliably managed pursuant to the
Companies Act. Furthermore, the CEO is in charge of the
day-to-day management of the entire Suominen Group.
The CEO acts as the Chair of the Executive Team and as
the immediate supervisor of the Executive Team members.
Tommi Björnman serves as Suominen’s President and
CEO. Klaus Korhonen acted as the interim President and
CEO of Suominen until March 31, 2023.
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Executive Team
The CEO is supported by the Executive Team. In 2023 the Executive Team consisted of:
Executive
Team member
Team member
since Born Nationality Education Position
Share ownership on
December 31, 2023
Tommi Björnman 2023 (joined Suominen
April 1, 2023)
1966 Finnish M.Sc. (Industrial
Engineering and
Management)
President & CEO 30,000
Janne Silonsaari 2023 (joined Suominen
June 1, 2023)
1980 Finnish M.Sc. (Econ. and
Business Adm.)
CFO -
Jonni Friman 2023 (joined Suominen
June 1, 2023)
1971 Finnish and
Swedish
M.Sc. (Industrial
Engineering and
Management)
SVP, Transformation
Management Office
-
Markku Koivisto 2017 1971 Finnish M.Sc. (Tech.) SVP, Europe & R&D (acted
as interim SVP, Americas
August 22–October 31,
2023)
53,172
Klaus Korhonen 2019 1974 Finnish LL.M. SVP, HR & Legal (acted as
interim President & CEO
until March 31, 2023)
52,630
Thomas Olsen 2023 (joined Suominen
November 1, 2023)
1965 U.S. MBA SVP, Americas -
Mimoun Saïm 2011 1964 French ENSI Engineering SVP, Operations 92,923
Until February 3, 2023
Toni Tamminen 2019 1978 Finnish D.Sc. (Tech)
M.Sc. (Econ)
CFO
Until August 21, 2023
Lynda Kelly 2014 1964 U.S. B.Sc. SVP, Americas &
Business Development
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, Transformation Management
Office and Communications & IR. The Company only has
one operating segment.
Main features of internal control
procedures and risk management
systems
Internal control
The main objective of internal controls at Suominen is to
ensure reliable financial reporting and compliance with
applicable laws, regulations, and internal policies and
principles. Moreover, internal controls aim to ensure the
efficiency of the Company’s processes and that its assets
are appropriately safeguarded.
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Control environment
Internal controls are embedded in the activities of
Suominen’s organization. Controlling is executed in
connection with the steering of business processes,
supported by comprehensive reporting.
The foundation of the internal control processes is
based on the Company’s Code of Conduct, corporate
culture and values, policies, guidelines and instructions,
and the ways of working adopted by the Company’s
management and employees. 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.
Effective internal control requires that duties are properly
allocated to employees and potential conflicts of interests
are identified and eliminated. In cascading the principles
within the organization, honesty, transparency and
working in teams are integral elements of establishing high
ethical standards throughout the Company. A satisfactory
control environment is ensured through internal analyses
and evaluations of key processes.
Nominated process owners are responsible for ensuring
that efficient internal process controls are defined and
implemented across the organization.
The ICT function ensures that the security checks of ICT
systems throughout the Suominen Group are functioning
and conducted at a sufficient level.
Control activities
Internal control activities are in place, among other things,
to 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 and the CEO to organize the internal
control activities.
In practice, control activities are conducted in the meetings
of the Board and management teams, where results of
the Company’s operations and 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 Suominen Group.
Internal control at Suominen has been decentralized
across global functions that monitor compliance with the
operating guidelines concerning their areas of responsibility
approved by the Board. 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 in order to prevent potential errors
and deviations in financial reporting and to help reveal
and correct any identified deviations or errors. Suominen
categorizes its control activities into three categories.
Documented instructions help the organization standardize
the monitoring of tasks. Continuous and regular reporting
providing feedback on the performance of the global
functions and each Group company ensures that
instructions and defined processes are followed. In critical
processes, specific authorizations are implemented in the
workflow for security and verification purposes.
The need for separate evaluations, as well as their scope
and frequency, is determined by assessing the risks and
effectiveness of ongoing control and monitoring processes.
Information security and relating control activities play a
key role when features of ICT systems are being defined
and applied.
Information and communication
The Company’s Financial Manual, policies approved by
the Board and other guidelines and instructions relating to
financial reporting are updated and communicated on a
regular basis by the management to all relevant employees,
and these are also available on the Company’s intranet.
In addition, a standard reporting package is used by the
business areas and Group companies.
Group management and business area management
conduct monthly reviews that include an analysis of the
defined performance metrics and indicators, which enable
the management to better understand the underlying
performance of the Company. The Board members receive a
monthly report on the Company’s result and financial position.
Monitoring
The Audit Committee is responsible for monitoring the
efficiency of the Company’s internal controls. Global
function and business area management and controller
functions are responsible for the ongoing monitoring of
control activities. The Company’s Finance function monitors
the operations and processes of the Group companies and
the accuracy of external and internal financial reporting.
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Regular inspections by quality auditors and customer audit
personnel also cover the internal controls of key business
processes.
Risk management
Risk management is 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
material risks that are significant from a business perspective.
The risk management process is based on Suominen’s Risk
Management Policy, which is approved and regularly reviewed
by the Board. The process consists of steps to identify,
assess, respond, monitor and report risks. Identification and
assessment of risks involves a dynamic and iterative process to
identify and evaluate risks, and it provides the foundation for
defining and monitoring mitigative actions for each identified
risk. A risk owner is assigned to each identified risk. The most
significant risks are reported annually to the Audit Committee
and additionally to the Board as needed.
Risks relating to financial reporting are managed in
accordance with the risk management process outlined in the
Risk Management Policy. Risks pertaining to financial reporting
are identified and evaluated addressing the risks in the most
relevant parts of the financial reporting process. Based on this
evaluation, appropriate mitigation measures are defined and
their effectiveness is continuously monitored.
The responsibilities relating to risk management are outlined
in the Risk Management Policy. The Board is responsible for
monitoring the evaluation and management of significant
risks relating to Suominen’s strategy and business operations.
The Audit Committee assists the Board in its duties relating
to risk management and is responsible for monitoring the
risk management processes and practices. The CEO has the
overall responsibility for risk management at Suominen and
is supported by the Executive Team members, which are
responsible for identifying and assessing risks within their own
area of responsibility.
Audit
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. Any material findings are reported to the
Audit Committee, the CEO, the Executive Team and other
relevant management.
External audit
According to its Articles of Association, Suominen has
one auditor which must be an entity of Certified Public
Accountants approved by the Finnish Central Chamber
of Commerce. The term of the auditor shall expire at the
end of the first Annual General Meeting of Shareholders
following the election. The auditors and the Audit
Committee agree annually on an audit plan.
Audit in 2023
The Annual General Meeting held on April 3, 2023
re-elected Ernst & Young Oy, Authorized Public
Accountant firm, as the auditor of the Company. Ernst
& Young Oy appointed Toni Halonen, Authorized Public
Accountant, as the principally responsible auditor of the
Company.
Audit fees in 2023
Auditor's fees and services, Suominen Group EUR thousand
Auditing 431
Non-audit related fees (tax and other consulting fees) 9
TOTAL 441
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 has approved and
regularly reviews Suominen’s Insider Policy, which informs
the governing bodies and employees of Suominen and its
Group companies of the regulations in force pertaining to
insider trading.
Management transactions
Suominen has in accordance with MAR determined that
members of the Board, the CEO and other members of the
Executive Team (collectively “Directors”) and their closely
associated persons have the duty to notify Suominen and
68 Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
the Finnish Financial Supervisory Authority of transactions
made by them or on their behalf on Suominen’s financial
instruments. Suominen maintains a list of the Company’s
Directors and their closely associated persons and publishes
the transactions notified to it as stock exchange releases.
Stock exchange releases on the transaction notifications
of Directors and their closely associated persons can be
found on Suominen’s website at www.suominen.fi.
Closed period
Suominen observes a closed period, which begins
30 calendar days before the publication of an interim
report, half-year report or financial statements release
and ends at the end of the day of publication of such
report or release. During the closed period, Directors
and certain other Suominen employees that are involved
in the preparation of financial reports or otherwise have
access to sensitive financial information of Suominen
(“Core Persons”) may not trade or conduct transactions
on their account or for the account of another, directly
or indirectly, relating to a financial instrument of the
Company. The timing of closed periods can be found on
Suominen’s website at www.suominen.fi.
During a closed period, trading with Suominen’s financial
instruments by Directors and Core Persons is allowed only
in certain exceptional situations. An exception can only be
applied where the Director or Core Person can show that
the transaction cannot be conducted at some other point
in time than during the closed period, and the Director
or Core Person is not in possession of inside information.
Any exception to the trading restriction during the closed
period requires prior approval by the Company for the
transaction in question.
Trading by Directors and Core Persons
Directors and Core Persons must, in addition to abiding by
the trading restriction during the closed period, 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. It is
also recommended to time the trading to a point in time
when the market has as complete knowledge as possible
on the factors affecting the value of the share or the
financial instrument.
Monitoring and control
The Insider Officer of Suominen is the Company’s Chief
Financial Officer. The Insider Officer is responsible for
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 is responsible for internal
communications and training concerning insider issues,
preparing and maintaining lists of Directors and their
closely associated persons and Core Persons, receiving
notifications concerning the transactions of Directors and
their closely associated persons and publishing the related
stock exchange releases, preparing and maintaining
project-specific insider lists, and monitoring insider
matters.
Principles for related party transactions
Suominen complies with applicable laws, regulations
and standards regarding related party transactions
and follows the requirements set for monitoring,
assessment, decision-making and reporting of related
party transactions. The Board has approved and regularly
reviews Suominen’s Related Party Policy, which defines
the principles for monitoring and assessing related party
transactions.
Suominen has defined the members of the Board, the
CEO and other members of the Executive Team and their
closely associated persons and entities as related parties
of the Company and 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 approves 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 and the Executive Team are obligated to report
any planned or executed related party transactions to the
Company’s Chief Financial Officer without undue delay.
69Suominen Annual Report 2023
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Remuneration Report
of Suominen Corporation
REMUNERATION POLICY 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 offer a framework for remuneration
that incentivizes to pursue towards the Company’s long-term financial performance and shareholder value creation.
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/investors/corporate-governance/remuneration/.
2023 CEO REMUNERATION AT A GLANCE
Tommi Björnman acted as the Company’s CEO starting April 1, 2023. The total remuneration paid to the CEO in 2023 decreased from the
previous year because the new CEO did not receive any payments under the Short-Term Incentive (the “STI”) nor the Long-Term Incentive (the
“LTI”) Plans during his first year of service. Except for a sign-on bonus paid to the CEO in the beginning of his service, there were no changes in
the CEO’s compensation structure in 2023.
Klaus Korhonen, the Company’s SVP, HR & Legal acted as the interim CEO until March 31, 2023. He received an increased base salary for the
interim role, but otherwise his remuneration and terms of employment remained as they were.
70 Suominen Annual Report 2023
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1. Introduction
This Remuneration Report (the “Report”) is based on
the Finnish Corporate Governance Code 2020 of the
Securities Market Association and provides the details
of the remuneration paid to members of the Board and
the CEO. The Board’s Personnel and Remuneration
Committee (the “PRC”) has reviewed the Report, and it
has been approved by the Board on February 5, 2024. This
Report provides information on the remuneration paid
during the financial year 2023. For updated information
on the Board and executive remuneration, please visit our
website: www.suominen.fi/en/investors/corporate-
governance/remuneration.
1.1 Remuneration at Suominen
The aim of Suominen’s Remuneration Policy is to offer a
framework for remuneration that incentivizes to pursue
towards the Company’s long-term financial performance
and shareholder value creation. The Policy provides the
Company with the principles for offering remuneration
that attracts, motivates, and retains the best possible
management and Board members who drive Suominen’s
performance and strategy in alignment with essential
stakeholder interests. The Policy’s goal is to ensure that
the philosophy of paying for performance is applied to
Suominen’s remuneration.
The Policy has the following guiding principles:
- Total remuneration opportunity shall be competitive
enough in relation to the market.
- Performance-based incentives form a significant part
of the CEO’s total target remuneration in order to
emphasize a strong pay-for-performance alignment.
- Majority of the performance-based incentives emphasize
long-term, rather than short-term performance and
have a straight link to shareholder value.
- Share ownership requirement is set for the CEO in order
to ensure balanced risk taking.
According to the Policy, Suominen aims to offer the
CEO a remuneration structure that incentivizes towards
the achievement of Suominen’s strategic targets and
long-term shareholder value creation. Suominen
utilizes both short-term and long-term performance-
based incentives for which the Board annually selects
appropriate performance metrics that steer towards the
implementation of Suominen’s strategy and achievement
of sustainable financial results in a competitive market.
The Policy is aligned with the remuneration principles
applied to all Suominen employees. The remuneration
shall be fair and reflect the competencies required to fulfill
the requirements of each position. Pay-for-performance
philosophy is widely followed in Suominen, and many
of the performance metrics in the CEO’s incentive plans
are concurrently used in employees’ incentive plans.
However, a more significant portion of the CEO’s total
compensation is tied to performance-based incentives,
as the Company aims to ensure a strong link between
executive remuneration and the Company performance.
Strengthens our
culture, values,
and supports
shareholder value
creation
Attracts, motivates,
and retains our
management and
employees
Promotes strategy
execution and is in
line with our long-
term financial goals
Supports the pay-
for-performance
philosophy
SUOMINEN REMUNERATION
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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 2019 to 2023.
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 the following:
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
the wages and salaries (for example bonuses) have been
earned, but not paid during that year.
3. 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.
4. 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 different number of Board and Committee meetings
during the year.
1.2 Pay-for-performance during the preceding five years
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Remuneration development and company performance 2019–2023
2019 2020 2021 2022 2023
CEO (Tommi Björnman, as of April 1, 2023) total remuneration¹
(EUR thousand) 385.2
Interim CEO (Klaus Korhonen, from November 30, 2022 to March
31, 2023) fixed remuneration² (EUR thousand) 20.4 62.4
Previous CEO (Petri Helsky) total remuneration³ (EUR thousand) 474.6 745.4 957.9 1,118.9
Index⁴ 100% 157% 202% 240% 94%
Employee pay (average)⁵
(EUR thousand) 54.9 59.9 53.4 58.9 63.9
Index⁴ 100% 109% 97% 107% 116%
Total Board remuneration⁶
(EUR thousand) 244.5 275.3 258.4 285.0 289.0
Index⁴ 100% 113% 106% 117% 118%
Jaakko Eskola 69.9 75.0 76.0
Andreas Ahlström 33.0 38.0 35.7 39.0 38.5
Björn Borgman 33.3 35.4 39.5 41.5
Nina Linander 43.5 46.8 52.5 52.5
Aaron Barsness 40.0 42.0
Laura Remes 37.0
Laura Raitio 33.0 38.0 35.7 39.0 1.5
Sari Pajari-Sederholm 28.0 37.3 34.9
Jan Johansson 70.0 76.3
Risto Anttonen 43.0 4.5
Hannu Kasurinen 33.5 4.5
Jaana Tuominen 4.0
3-year TSR⁷
(%) -34% 12% 126% 41% -35%
Share price development⁸
(EUR) 2.34 4.90 4.82 2.86 2.70
Index⁴ 100% 209% 206% 122% 115%
EBITDA
(EUR million) 33.7 60.9 47.0 15.3 15.9
Index⁴ 100% 181% 139% 45% 47%
¹ CEO total remuneration includes all payments made to the CEO during the financial year.
² Interim CEO Klaus Korhonen’s remuneration in 2022 and 2023 is from the period he acted as the interim CEO and includes only the fixed salary during the stated period.
³ Previous CEO Petri Helsky’s remuneration in 2019–2022 includes all payments made to the CEO during the period he acted as the CEO.
⁴ First year (2019) in the time-series set at 100%.
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 2023 is calculated as (Q4/2023 average share price - Q4/2020 average share price) ÷ Q4/2020 average share price + (paid dividends in 2021, 2022 and 2023) ÷ Q4/2020 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, 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 efforts required from the members of
the Board to fulfill their duties.
Suominen’s AGM held on April 3, 2023, resolved to
maintain the annual remuneration payable to the members
of the Board unchanged. The current remuneration is
as follows:
- The Chair is paid an annual fee of EUR 70,000.
- The Deputy Chair and other Board members an
annual fee of EUR 33,000.
- Chair of the Audit Committee is paid an additional fee
of EUR 10,000.
- Further, the members of the Board 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 attended by telephone or
other electronic means.
2. Remuneration of the Board of Directors
for the preceding financial year
At the AGM on April 3, 2023, 100% of the votes cast were
in favor of the Remuneration Report 2022. The PRC and
the Board have considered the positive feedback provided
by the shareholders at the AGM.
The Board decided to temporarily deviate from the
Remuneration Policy during 2023 by offering the new
CEO Tommi Björnman a sign-on bonus in the beginning
of his service. The condition for the payment of the
sign-on bonus was that he starts his service at the
latest on April 1, 2023. The amount of the bonus was
equal to the CEO’s one month’s salary. According to
the Policy, the Board may temporarily deviate from the
Policy after careful consideration in certain exceptional,
pre-determined situations, such as the recruitment of a
new CEO. The deviation was carefully considered by the
Board in accordance with the Policy. The sign-on bonus
was considered to be necessary to incentivize the new
CEO to start in the role as early as possible.
During 2023, Suominen has not exercised any rights
to reclaim (clawback) or cancel (malus) any paid or
unpaid incentives.
1.3 Information on the previous vote for the Remuneration Report and any deviations
or clawbacks made
74 Suominen Annual Report 2023
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Remuneration of the Board of Directors in 2023
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)
Total
(EUR)
Jaakko Eskola Chair 52,438.40 17,561.60 6,272 6,000 76,000
Andreas Ahlström Deputy Chair 24,723.20 8,276.80 2,956 5,500 38,500
Aaron Barsness Member 24,723.20 8,276.80 2,956 9,000 42,000
Björn Borgman Member 24,723.20 8,276.80 2,956 8,500 41,500
Nina Linander* Member 32,211.60 10,788.40 3,853 9,500 52,500
Laura Remes
(as of April 3, 2023)
Member 24,723.20 8,276.80 2,956 4,000 37,000
Laura Raitio
(until April 3, 2923)
Member 1,500 1,500
* Chair of the Audit Committee; including an additional fee of EUR 10,000
Remuneration of the members of the Board of Directors, including the value of the remuneration paid in Suominen
shares, totaled EUR 289,000 in 2023.
Additionally, compensation for expenses has been paid in accordance with the Company’s travel policy.
75% of the annual fee was paid in cash and 25% in
Suominen’s shares. The shares were transferred out of the
own shares held by the Company by the decision of the
Board on May 10, 2023.
Members of the Board are not employees of Suominen
and do not participate in any Suominen incentive
scheme or pension arrangement. In accordance with the
pension laws in Sweden, the fees paid to the Swedish
members of the Board are subject to employment
pension contributions. All payments to the members of
the Board during 2023 have been in compliance with the
Remuneration Policy. In 2023, the following fees were paid
to the members of the Board:
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Two CEOs acted in the role during 2023.
Klaus Korhonen, from January 1, 2023
to March 31, 2023
Klaus Korhonen, the Company’s SVP, HR & Legal, acted
as an interim CEO as of January 1, 2023, until March 31,
2023. He received an increased base salary for the interim
role, but otherwise his terms of employment remained the
same. Klaus Korhonen’s actual paid base salary including
benefits was EUR 62,400 between January 1, 2023 –
March 31, 2023.
Tommi Björnman, from April 1, 2023
Tommi Björnman acted as the Company’s CEO as of
April 1, 2023.
In 2023, Tommi Björnman’s remuneration consisted
of fixed base salary (including fringe benefits), a sign-on
bonus of one month’s salary, and supplementary pension.
As it was his first year as the CEO, he did not receive any
STI or LTI payments in 2023.
In 2023, Tommi Björnman was paid a total remuneration
of EUR 425,028, consisting of fixed salary, sign-on bonus,
and benefits of EUR 385,180, and a supplementary pension
payment of EUR 39,848.
In 2023, Tommi Björnman earned the following variable
incentives which are to be paid in 2024:
The reward from the Global STI 2023 was based on Group
EBITDA (Earnings before interest, taxes, depreciation,
amortization, 70% weight), Group CM (Contribution
margin, 20% weight), Group DSO+DIO (Days sales
outstanding + days inventory outstanding, 10% weight)
and personal targets (20% weight). The outcome for these
targets in total was between threshold and target equaling
to EUR 59,667.
STI 2023 KPIs and achievement for the CEO
1
KPI Weight Achievement
Group EBITDA 50% Between threshold and target
Group CM 20% Between threshold and target
Group DSO+DIO 10% Between target and maximum
Personal targets 20% Between target and maximum
Total 100% Between threshold and target
1
To be paid during 2024
3. Remuneration of the President & CEO
for the preceding financial year
23_pie
Base +
benefits 82%
82
Non-statutory
pension 9%
9
Sign-on bonus
9%
9
Total CEO pay in 2023 in proportions
Base + benefits 82%
Non-statutory pension 9%
Sign-on bonus 9%
10
0
50
100
150
200
250
300
2019 2020 2021 2022 2023
Share price (index)
EBITDA (index)
CEO remuneration (index)
columns and line
2019
2020
2021
2022
2023
%
Company performance and
CEO remuneration 2019–2023
11
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Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Base salary +
benefits
Paid in 2023
(including
holiday pay):
Base salary:
EUR 346,500
Benefits:
EUR 180
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 is eligible for
benefits such as company car, health insurance,
lunch, and telephone.
Sign-on bonus One-time bonus
2023:
EUR 38,500
In order to incentivize the new CEO to start in the
role as early as possible, he was offered a sign-on
bonus which equals to his one (1) month’s base
salary if he will start at the latest on April 1, 2023.
Deviates from the Policy: A sign-on bonus is not
specifically mentioned in the Policy. As stated
in the Policy, the Board may deviate from the
Policy in certain exceptional situations, such as
recruitment of a new CEO. Accordingly, after
careful consideration, the Board considered it
necessary to temporarily deviate from the Policy
and to offer a sign-on bonus to incentivize the
new CEO to start in the role as early as possible.
Supplementary
pension
arrangement
Paid in 2023:
EUR 39,848
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.
Complies with the Policy: The CEO participates
in a non-statutory defined contribution pension
plan. The Company’s contribution was 11.5% of
the annual base salary in 2023. Pension starts from
the age of 63.
Cash bonus
(Short-term
remuneration)
Earned from
financial year
2023 (Global STI
2023), to be paid
in 2024:
EUR 59,667
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 2023
was 60% of the annual base salary (excluding
holiday pay).
CEO Tommi Björnman’s remuneration in 2023 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”)
No LTI earned
in 2023
The purpose is to reward for the delivery of
long-term shareholder value, to align the CEO’s
interests with those of the shareholders and to
increase the value of the Company by offering
a share ownership-based reward structure. The
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 share-based plan,
which offers the CEO the opportunity of earning
a predetermined number of Suominen shares as
a reward. Payment of the reward is dependent on
the achievement of performance targets set by
the Board and continued employment.
The Board resolves the maximum number of
shares that can be earned from the 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 is eligible in
an MRSP Plan, the aim of which is to align the
objectives of the shareholders and the CEO in
order to increase the value of Suominen in the
long-term, to retain the CEO at the Company,
and to offer him a competitive reward plan that is
based on acquiring, receiving and accumulating
the Company’s shares. Under the plan, the CEO is
expected to own or acquire up to 30,000 shares
of the Company. The Company will match the
share investment by way of the CEO receiving,
without consideration, up to 60,000 matching
shares (gross including also the proportion to
be paid in cash). The plan includes three vesting
periods, June 1, 2023–June 1, 2024, June 1,
2023–June 1, 2025 and June 1, 2023–June 1,
2026. The potential reward will be paid partly
in shares and partly in cash in three equal
installments after each vesting period, provided
that the CEO’s service in the Company is in force
at the time of the reward payment.
The CEO is eligible in the LTI Performance Period
2023–2025. His maximum earning opportunity
under the LTI Plan equals to 168,500 shares
(gross) of the Company. The performance metric
in the Plan is relative total shareholder return.
The possible reward under the Plan will be paid in
spring 2026.
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 for the calendar year preceding the
payment of the reward. 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
received nor sold any shares from any LTI Plan.
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Laura Raitio acted as member of the Board until April 3, 2023.
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, 2023.
Board of Directors
DECEMBER 31, 2023
JAAKKO ESKOLA
b. 1958
M.Sc. (Technology)
Member of the Board since 2021
Chair of the Board since 2021
Independent member
Shareholding*:
26,166 Suominen shares
AARON BARSNESS
b. 1973
BA (Biology and
Environmental Studies)
CMO, Fazer Group
Member of the Board since 2022
Independent member
Shareholding*:
5,459 Suominen shares
BJÖRN BORGMAN
b. 1975
M.Sc. (Industrial Engineering)
CEO, HL Display AB
Member of the Board since 2020
Independent member
Shareholding*:
24,902 Suominen shares
ANDREAS AHLSTRÖM
b. 1976
M.Sc. (Economics and
Business Administration)
Investment Director,
A. Ahlström Corporation
Member of the Board since 2015
Deputy Chair of the Board since 2020
Non-independent member
Shareholding*:
26,792 Suominen shares
LAURA REMES
b. 1980
M.Sc. (Technology)
Vice President, Strategy and Business
Development, UPM Fibres
Member of the Board since 2023
Independent member
Shareholding*:
2,956 Suominen shares
NINA LINANDER
b. 1959
B.Sc. (Economics) and MBA
Member of the Board since 2020
Independent member
Shareholding*:
27,631 Suominen shares
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Executive Team
DECEMBER 31, 2023
JONNI FRIMAN
SVP, Transformation
Management Office
b. 1971
M.Sc. (Industrial Engineering
and Management)
Joined Suominen in 2023
Shareholding*: –
TOMMI BJÖRNMAN
President & CEO
b. 1966
M. Sc. (Industrial Engineering and
Management)
Joined Suominen in 2023
Shareholding*:
30,000 Suominen shares
KLAUS KORHONEN
SVP, HR & Legal
b. 1974
LL.M.
Joined Suominen in 2019
Shareholding*:
52,630 Suominen shares
MIMOUN SAÏM
SVP, Operations
b. 1964
ENSI Engineering
Joined Suominen in 2011
Shareholding*:
92,923 Suominen shares
JANNE SILONSAARI
CFO
b. 1980
M.Sc. (Economics and
Business Administration)
Joined Suominen in 2023
Shareholding*: –
MARKKU KOIVISTO
SVP, Europe & R&D
b. 1971
M.Sc. (Technology)
Joined Suominen in 2017
Shareholding*:
53,172 Suominen shares
THOMAS OLSEN
SVP, Americas
b. 1965
MBA
Joined Suominen in 2023
Shareholding*: –
Klaus Korhonen acted as an interim President & CEO until March 31, 2023. Sirpa Koskinen acted as an interim CFO until May 31, 2023.
Markku Koivisto acted as an interim SVP, Americas, between August 22–October 31, 2023.
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, 2023.
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Financial information
JANUARY 1DECEMBER 31, 2023
19. Revenue from contracts with customers…142
20. Segment reporting and entity-wide disclosures…144
21. Other operating income and expenses…145
22. Leases and right-of-use assets…146
23. Fees paid to auditors…149
24. Employee benefits…150
25. Depreciation, amortization and impairment
of assets…152
26. Financial income and expenses…153
27. Income taxes…154
28. Share-based payments…158
29. Earnings per share…160
30. Adjustments to statement of cash flows…160
31. Information about key management personnel…161
32. Contingent liabilities…163
33. Events after the reporting period…164
Key ratios per share…165
Calculation of key ratios per share…166
PARENT COMPANY FINANCIAL
STATEMENTS (FAS)…169
Income statement…169
Balance sheet…170
Cash flow statement…172
Notes…173
AUDITOR’S REPORT…183
INDEPENDENT AUDITOR’S REPORT ON ESEF
CONSOLIDATED FINANCIAL STATEMENTS...187
KEY RATIOS…189
Calculation of key ratios…190
REPORT BY THE BOARD OF DIRECTORS…83
CONSOLIDATED FINANCIAL STATEMENTS (IFRS)…104
Consolidated statement of financial position…104
Consolidated statement of profit or loss…105
Consolidated statement of other comprehensive
income…105
Consolidated statement of changes in equity…106
Consolidated statement of cash flows…107
Notes to the consolidated financial statements…108
1. Material accounting policy information
– consolidated financial statements…108
2. Accounting estimates and judgements…111
3. Financial risk management…112
4. Management of capital…118
5. Goodwill…119
6. Intangible assets…121
7. Property, plant and equipment…123
8. Group companies…125
9. Equity instruments…126
10. Inventories…127
11. Trade and other receivables…128
12. Financial instruments…131
13. Equity and information on Suominen share…133
14. Interest-bearing liabilities…137
15. Provisions…139
16. Trade payables and other liabilities…140
17. Derivative instruments…140
18. Fair value hierachy…141
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Highlights of Suominen’s financial year 2023
- Net sales decreased by 9% and were EUR 450.9 million (493.3)
- Comparable EBITDA was EUR 15.8 million (15.3)
- Cash flow from operations totaled to EUR 30.7 million (14.0)
- Board of Directors proposes to the Annual General meeting a dividend of EUR 0.10 per share
Report by the Board
of Directors 2023
Key figures 2023 2022 2021
Net sales, EUR million 450.9 493.3 443.2
Comparable EBITDA, EUR million 15.8 15.3 47.0
EBITDA, EUR million 11.2 14.3 47.0
Comparable operating profit, EUR million -2.8 -4.2 26.9
Operating profit, EUR million -7.5 -9.0 26.9
Profit for the period, EUR million -12.8 -13.9 20.7
Earnings per share, basic, EUR -0.22 -0.24 0.36
Earnings per share, diluted, EUR -0.22 -0.24 0.36
Cash flow from operations per share, EUR 0.53 0.24 0.19
Return on invested capital, rolling 12 months, % -4.1 -4.2 13.9
Gearing, % 35.3 37.4 30.4
Dividend per share, EUR 0.10 0.10 0.20
* 2023 the proposal of the Board of Directors to Annual General Meeting
The figures shown in brackets refer to the performance in 2022, unless otherwise stated.
Net sales
In 2023, Suominen’s net sales decreased by 9% from the
comparison period to EUR 450.9 million (493.3). The
decrease in sales was driven by lower sales prices resulted
from lower raw material prices. Volumes decreased
slightly from 2022 mainly related to the plant closure in
Mozzate. Currencies impacted net sales negatively by
EUR 6.8 million.
Net sales of Americas business area were EUR 288.0
million (288.0) and net sales of Europe business area
EUR 162.8 million (205.5).
EBITDA, operating profit and result
Comparable EBITDA (earnings before interest, taxes,
depreciation and amortization) was EUR 15.8 million
(15.3). EBITDA was EUR 11.2 million (14.3). Comparable
EBITDA increase was driven by the improved sales margins
while sales volumes decreased slightly due to Mozzate
closure. Currencies impacted EBITDA positively by
EUR 0.6 million. Items affecting comparability of EBITDA
were -4.7 EUR million (-1.0), related to the closure of
Mozzate plant.
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Comparable operating profit amounted to EUR -2.8
million (-4.2). Operating profit amounted to EUR -7.5
million (-9.0).
Items affecting comparability of operating profit
were EUR -4.8 million (-4.8), related to the closure of
Mozzate plant.
In 2023, profit before income taxes was EUR -13.5
million (-11.9). Income taxes for the financial year were
EUR 0.7 million (-2.0).
The profit for the period was EUR -12.8 million (-13.9).
Net sales, EBITDA and operating profit
EUR thousand 2023 2022 2021
Net sales 450,851 493,298 443,219
Comparable EBITDA 15,813 15,257 47,033
EBITDA 11,163 14,287 47,033
Comparable operating profit -2,750 -4,163 26,941
Operating profit -7,517 -8,958 26,941
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, 2023, amounted
to EUR 44.1 million (54.6). Gearing was 35.3% (37.4%) and
equity ratio 39.5% (42.5%).
In 2023, net financial expenses were EUR -6.0 million
(-2.9), or 1.3% (0.6%) of net sales. Net effect of changes in
foreign exchange rates in financial items were EUR -0.6
million (+2.8).
Cash flow from operations in 2023 was EUR 30.7 million
(14.0). Cash flow from operations per share in 2023 was
EUR 0.53 (0.24). The financial items in the cash flow from
operations, in total EUR -5.0 million (-4.7), were principally
impacted by the interests paid during the reporting period.
The change in the net working capital in 2023 was EUR 25.7
million positive (EUR 7.8 million positive) mainly thanks to
less cash being tied up in inventory.
Capital expenditure
In 2023, the gross capital expenditure totaled EUR 11.2
million (9.7) and the largest item was related to the
growth investment initiatives in Nakkila, Finland. Other
investments were mainly for maintenance.
Depreciations and amortizations were EUR -18.6 million
(-19.4) and impairment losses were EUR -0.1 million (-3.8).
Capital expenditure and depreciation, amortization
and impairment losses
EUR thousand 2023 2022 2021
Gross capital expenditure 11,223 9,712 17,770
% of net sales 2.5 2.0 4.0
Depreciation, amortization and
impairment losses -18,680 -23,245 -20,092
Key ratios
2023 2022 2021
Return on equity (ROE), % -9.6 -8.8 13.3
Return on invested capital (ROI), % -4.1 -4.2 13.9
Equity ratio, % 39.5 42.5 42.2
Interest-bearing net debt, EUR
million* 44.1 54.6 49.6
Capital employed, EUR million 168.4 199.8 211.0
Gearing, % 35.3 37.4 30.4
* At nominal value
Key ratios per share
2023 2022 2021
Earnings per share, EUR, basic -0.22 -0.24 0.36
Earnings per share, EUR, diluted -0.22 -0.24 0.36
Cash flow from operations per
share, EUR 0.53 0.24 0.19
Equity per share, EUR 2.17 2.54 2.85
Price per earnings per share (P/E)
ratio -12.9 -12.4 14.4
Dividend per share, total, EUR* 0.10 0.10 0.20
Dividend payout ratio, % -45.1 -41.4 55.5
Dividend yield, % 3.51 3.33 3.86
* 2023 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.
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Quarterly development 2023
2023
EUR thousand 10–12 7–9 4–6 1–3
January 1−
December 31,
2023
Net sales 114,938 106,447 112,673 116,793 450,851
Comparable EBITDA 5,275 5,200 2,690 2,648 15,813
as % of net sales 4.6 4.9 2.4 2.3 3.5
Items affecting comparability -11 -26 -4,613 − -4,650
EBITDA 5,263 5,174 -1,922 2,648 11,163
as % of net sales 4.6 4.9 -1.7 2.3 2.5
Comparable operating profit 670 666 -2,102 -1,985 -2,750
as % of net sales 0.6 0.6 -1.9 -1.7 -0.6
Items affecting comparability -11 -26 -4,621 -108 -4,767
Operating profit 658 640 -6,722 -2,093 -7,517
as % of net sales 0.6 0.6 -6.0 -1.8 -1.7
Net financial items -2,005 -1,152 -1,293 -1,537 -5,987
Profit before income taxes -1,347 -512 -8,016 -3,630 -13,504
as % of net sales -1.2 -0.5 -7.1 -3.1 -3.0
Research and development
At Suominen, research and development activities
are organized into R&D function. In the end of 2023,
R&D function had 14 (15) employees. Research and
development expenses amounted to EUR 3.9 million (3.5),
corresponding to 0.9% (0.7%) 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 differentiate
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 offer
best possible support to the Group companies to satisfy
the current and future customer needs.
Personnel
During 2023, Suominen employed 682 FTEs (707) on
average, and 659 (710) FTEs at the end of 2023. The
decrease is mainly due the closure of Mozzate plant and
termination of employment of 55 employees.
Personnel related key ratios
2023 2022 2021
Average number of personnel
(FTEs - full time equivalent) 682 707 709
Wages and salaries, EUR thousand -43,598 -41,660 -37,872
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 sells 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 South
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American markets. Suominen’s net sales were EUR 450.9
million and the Group employed 682 people on average
(FTEs).
Suominen’s vision is to be the frontrunner for
nonwovens innovation and sustainability. The objectives
of our strategy are growth and improved profitability
through sustainability, customer focus and efficiency.
Suominen’s main focus is on wipes. More information
about Suominen’s value creation can be found in the
Annual Report, from p. 9 onwards.
Materiality assessment
In 2023, Suominen started a process to update its material
sustainability topics to take into consideration all our
impacts, risks, and opportunities throughout our value
chain (double materiality). The process includes internal
workshops with key experts and management, as well as
stakeholder engagement. In internal workshops, topics
relevant to the business of Suominen in all parts of the
value chain were listed and the negative and positive
impacts of these identified. Stakeholder engagement
included a stakeholder survey sent to stakeholders – such
as customers, employees, institutional investors, suppliers,
industry associations and owners – and interviews
with key stakeholders. The work is to be finalized in the
beginning of 2024 and will aid in the development of
our sustainability agenda and guide the future actions to
be taken.
The previous materiality assessment was conducted
in 2019. This assessment formed the basis for our
Sustainability Agenda 2025–2025, which is based on
the six most material sustainability topics for Suominen:
eco-friendly products, health and safety, energy efficiency,
waste prevention, financial stability, and employee
engagement.
Sustainability at Suominen
Sustainability is an integral part of Suominen’s strategy.
The company is committed to a 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 is approved by the
Board of Directors. Sustainability agenda, related goals
and supporting policies are owned and monitored by
the Executive Management Team. The Vice President,
Communications & Sustainability, is responsible for the
sustainability at Suominen and she reports to the President
and CEO. The Communications & Sustainability function
operating under her supervision is responsible for the
practical coordination and reporting of sustainability
activities. Suominen’s operations and support functions
are responsible for implementing the company level
sustainability initiatives to meet the targets. In addition,
each Suominen employee has an obligation to perform
their duties in compliance with the principles concerning
sustainability.
Risk management at Suominen
Suominen’s risk management model covers strategic,
operational, financial and hazard risks, as well as
sustainability related 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 Officer. 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 yearly against Suominen’s strategic
objectives. Suominen’s risks and risk management
practices, including risks related to non-financial
information, are described in more detail in the Business
risks and uncertainties section.
Environmental responsibility
Operating principles
For Suominen the material aspects of environmental
responsibility include our targets to minimize the
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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 the 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 our production.
The general operating principles governing the
management of environmental issues are documented
in Suominen’s Code of Conduct. All our sites have a
certified environmental management system (ISO 14001),
a 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 offering sustainable nonwovens
are 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 2023, our water
consumption has decreased by 0.7% and greenhouse gas
emissions by 14.9% per ton of product compared to 2019.
We did not succeed in our target to reduce our energy
consumption and waste to landfill in 2023.
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 2023, we had 12 sustainable
product launches, and the sales of sustainable products
increased by 79% compared to the base year of 2019.
In 2023, there were no significant environmental
incidents resulting from permit violations, claims or
compensations.
You can read more about our sustainability work in the
Annual Report, from p. 17 onwards.
Social responsibility and personnel
Operating principles
Suominen’s material aspects relating to social
responsibility and personnel are health, safety and
employee engagement. Suominen is committed to
providing a safe and healthy working environment for all
employees, contractors, and others working for us. We
comply with all applicable safety and health laws and
regulations. Suominen is committed to implementing
safety programs to promote a positive safety culture and
to encourage participation of, and consultation from
all employees. To do this we provide training and share
information on safety matters with our own employees as
well as external workers working in our premises.
Suominen recognizes the business benefits of
having a diverse workforce and aims to provide equal
opportunities for everyone based on a competence,
experience, and performance. We do not tolerate any
kind of discrimination, including discrimination due to
age, gender, religion, ethnic or national origin, sexual
orientation, political opinion, disability, or any other
characteristic protected under the applicable law. We are
committed to fair and equal treatment of our employees
and anyone seeking employment at Suominen in matters
that involve recruitment, promotion, development,
rewards, or any other term or condition of employment.
We expect everyone to be treated with dignity, respect,
and common courtesy. We do not tolerate any form of
harassment, bullying, or any other inappropriate behavior
that can be considered offensive, intimidating, or insulting.
Compensation and rewarding of our employees are based
on the requirements and complexity of their position
and their performance. Differences in individual salaries
are based on differences between competence, work
experience, and performance.
We respect our employees’ right to form or join
trade unions and to bargain collectively. We provide
working conditions that comply with local statutory
requirements and collective bargaining agreements.
Suominen complies with all applicable laws, regulations,
and collective bargaining agreements regarding wages,
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working hours, overtime and benefits. We support the
physical and mental wellbeing of our employees and
recognize the importance and benefits of appropriate
balance between work and private life. We aim to find
answers to various life situations, for example by making
working time arrangements and giving time off. Many of
our employees are able to work in a hybrid model which
means a flexible working arrangement combining office-
based work and working from home or another remote
location, taking breaks and making use of the flextime
when necessary. Our production employees work in shifts,
and we monitor closely how they cope with shift work. We
encourage people working in shifts to find the best ways
for themselves to recover.
The operating principles concerning health, safety and
labor rights are documented in the Code of Conduct and
Human Rights Policy.
Performance indicators, targets, and results
Safety, increasing employee engagement and building
high-performance culture are 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 2023, 6 lost time accidents occurred at our
plants.
Increasing employee engagement is a key sustainability
target relating to our people. We conducted for the fourth
time a global employee engagement survey in 2023, 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.
Indicator 2023 2022 2021
Health and safety 6 LTA* 2 LTA* 4 LTA*
Employee engagement index 66% 65% 66%
* Lost time accident
You can read more about our sustainability work in the
Annual Report, from p. 17 onwards.
Human rights
Suominen recognizes its responsibility to respect human
rights and requires its business partners to do the same.
Suominen respects and supports the protection of
internationally proclaimed human rights such as those
described in the Universal Declaration of Human Rights,
the International Covenant on Civil and Political Rights, the
International Covenant on Economic, Social and Cultural
Rights, and the International Labor Organization’s (ILO)
Declaration on the Fundamental Principles and Rights at
Work. Suominen is committed to the OECD Guidelines
for Multinational Enterprises, the UN Global Compact,
and the UN Guiding Principles on Business and Human
Rights. Suominen’s own Human Rights Policy reaffirms the
company’s commitment to respecting human rights.
Suominen works consistently to ensure that human
rights are respected across the value chain. We select
our business partners carefully and collaborate only with
those who conduct business ethically and responsibly and
share our values. Suominen expects that all its suppliers
respect and promote human rights and comply with
Suominen’s Code of Conduct. Suominen may request its
suppliers to verify their compliance with the Supplier Code
of Conduct through a self-assessment questionnaire, a
third-party assessment, and/or on-site audit. Suppliers are
expected to reasonably cooperate with any such request
or audits. In case Suominen finds that a supplier is in
breach of the Supplier Code of Conduct, the supplier is
required to take immediate corrective actions to remedy
the breach. Where in Suominen’s reasonable judgement
the non-compliance is severe or corrective actions are
not sufficiently or timely implemented, Suominen has
the right, without limiting any other remedy or right it
might have, to suspend or terminate its contract with the
supplier and/or to exclude the supplier from any future
tender process.
In 2023, 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
responsibility requirements apply also to our suppliers.
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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 training is mandatory for
all employees and an e-Learning course on Anti-bribery
and Corruption is mandatory for all white-collar
employees. At the end of the year, 94% of all employees
had completed the Code of Conduct training and 97%
of white-collars the Anti-bribery and the Corruption
e-Learning.
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.
In 2023 there were no identified corruption or
bribery cases.
Suominen’s EU taxonomy report
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
and objective criteria. In the first phase, criteria have been
set for the sectors that are the most relevant for achieving
climate neutrality and delivering on the climate change
adaptation. This includes sectors such as energy, forestry,
manufacturing, transportation and construction.
In 2022, non-financial companies were required to
disclose the proportion of taxonomy-aligned, taxonomy-
eligible and taxonomy-non-eligible economic activities
of their total net sales, capital expenditure (CapEx) and
operational expenditure (OpEx) for only two of the six
environmental objectives: climate change mitigation and
climate change adaptation. In 2022, 100% of Suominen’s
net sales were non-eligible, of CapEx 12% was taxonomy-
eligible and 1% taxonomy-aligned and of OpEx 16% was
taxonomy-eligible and less than 1% taxonomy-aligned.
In 2023, taxonomy-alignment is to be reported for
the same two environmental objectives as in 2022, and
taxonomy-eligibility and taxonomy-non-eligibility is to be
reported for the remaining four environmental objectives.
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 capital expenditure 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 and continuous
work to improve emissions calculations to cover the
whole value chain, our comprehensive sustainable
product offering and our continuous work to explore new
innovative fibers to be able to offer even more sustainable
and low-carbon nonwoven products represents our
contribution to climate change mitigation and adaptation.
Suominen’s taxonomy-eligible activities are mainly
capital expenditure or maintenance expenditure related to
energy efficiency, waste-water collection and treatment,
maintenance and leasing of electric forklifts as well
as research and development activities. Taxonomy-
aligned activities are mainly related to energy efficiency
of buildings.
Suominen has reviewed its total CapEx and OpEx and
allocated them to taxonomy-eligible and taxonomy-non-
eligible activities. The allocation of CapEx and OpEx to
taxonomy-eligible and taxonomy-non-eligible activities is
made based on the taxonomy-eligible activities described
in the Climate Delegated Act 2021/2139 and its Annexes.
The assessment of whether a taxonomy-eligible activity is
also a taxonomy-aligned activity is based on the technical
screening criteria as stated in the Annexes of the Climate
Delegated Act 2021/2139 as well as on the compliance
criteria set out in Regulation (EU) 2020/852 Article 3. Each
taxonomy-eligible economic activity has been evaluated
for alignment using the relevant criteria, and in the case of
non-compliance, the activity has not been categorized as
taxonomy-aligned.
Each site is responsible for completing the valuation of
eligibility and alignment of its own activities. Suominen
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has a web-based tool to support in the valuation process.
Group functions are responsible for providing common
working guidelines and definitions. Valuations of activities
and figures in the taxonomy report are validated at
Group level.
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. Suominen has assessed
compliance with the safeguards also through ensuring the
existence of processes covering human rights, corruption,
taxation, and fair competition and addressing cases of
violations if any arise.
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 (as defined in IAS 16),
intangible assets (as defined in IAS 38) and in right-of-use
assets (as defined in IFRS 16).
Total CapEx, EUR thousand 2023 2022
Increases in property, plant and
equipment
11,054 9,275
Increases in intangible assets 169 438 Not
internally
generated
Increases in right-of use assets 2,410 705
Total 13,633 10,418
The numerator used in calculation of the proportion of
taxonomy-aligned 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 effective
functioning of our assets.
The numerator used in calculation of the proportion
of taxonomy-aligned 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 and taxonomy-aligned OpEx.
The operational expenditure was EUR 27,595 thousand
in 2023 (22,923).
To ensure that CapEx and OpEx are included only in
one economic activity (to avoid double counting), the
total of allocated expenditure is reconciled with the total
unallocated expenditure. The assessments whether a
taxonomy-eligible economic activity is also taxonomy-
aligned have been made separately for each production
plant. For that reason, some economic activities
have been presented as both taxonomy-eligible and
taxonomy aligned.
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Turnover Substantial Contribution Criteria DNSH Criteria (Does Not Significant Harm)
Economic activities Code(s)
Absolute
turnover
EUR
thousand
Proportion
of turnover
Climate
change
mitigation
Climate
change
adaptation
Sustainable
use and
protection
of water
and marine
resources
Transition
to
a circular
economy
Pollution
prevention
and control
Protection
and
restoration of
biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Sustainable
use and
protection
of water
and marine
resources
Transition
to
a circular
economy
Pollution
prevention
and control
Protection
and
restoration of
biodiversity
and
ecosystems
Minimum
safeguards
Taxonomy-
aligned
proportion of
turnover,
year 2023, %
Taxonomy-
aligned
proportion of
turnover,
year 2022, %
Category
(enabling
activity)
Category
(transitional
activity)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned)
Turnover of environmentally
sustainable activities (Taxonomy-
aligned) (A.1) 0 0% N/A N/A N/A N/A
A.2 Taxonomy-eligible but not
environmentally sustainable
activities (not Taxonomy-aligned
activities) N/A N/A N/A N/A
Turnover of Taxonomy-eligible
but not environmentally
sustainable activities (not
Taxonomy-aligned activities) (A.2) 0 0% N/A N/A N/A N/A
Total (A.1 + A.2) 0 0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of taxonomy-non-
eligible activities 450,851 100%
Total (A + B) 450,851 100%
Proportion of Turnover / Total Turnover
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 0%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
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Capital expenditure Substantial Contribution Criteria DNSH Criteria (Does Not Significant Harm)
Economic activities Code(s)
Absolute
CapEx
EUR
thousand
Proportion
of CapEx
Climate
change
mitigation
Climate
change
adaptation
Sustainable
use and
protection
of water
and marine
resources
Transition
to
a circular
economy
Pollution
prevention
and control
Protection
and
restoration of
biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Sustainable
use and
protection
of water
and marine
resources
Transition
to
a circular
economy
Pollution
prevention
and control
Protection
and
restoration of
biodiversity
and
ecosystems
Minimum
safeguards
Taxonomy-
aligned
proportion
of CapEx,
year 2023, %
Taxonomy-
aligned
proportion
of CapEx,
year 2022, %
Category
(enabling
activity)
Category
(transitional
activity)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned)
Installation, maintenance and repair of
instruments and devices for measuring,
regulation and controlling energy
performance of buildings 7.5. 16 0% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% N/A N/A N/A
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 16 0%
A.2 Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of other low carbon
technologies 3.6. 165 1%
Installation and operation of electric
heat pumps 4.16. 62 0%
Construction, extension and operation
of water collection, treatment and supply
systems 5.1. 30 0%
Construction, extension and operation of
waste water collection and treatment 5.3. 18 0%
Transport by motorbikes, passenger cars
and light commercial vehicles 6.5. 134 1%
Renovation of existing buildings 7.2. 1,047 8%
Installation, maintenance and repair of
energy efficiency equipment 7.3. 164 1%
Close to market research, development
and innovation 9.1. 96 1%
Manufacture, installation and associated
services for leakage control technologies
enabling leakage reduction and
prevention in water supply systems 1.1. 27 0%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2) 1,742 13% 13% N/A N/A N/A
Total (A.1 + A.2) 1,758 13% 13% N/A N/A N/A
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of taxonomy-non-eligible
activities 11,784 87%
Total (A + B) 13,543 100%
Proportion of CapEx / Total CapEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 6%
CCA 0% 5%
WTR 0% 0%
CE 0% 3%
PPC 0% 0%
BIO 0% 0%
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Operational expenditure Substantial Contribution Criteria DNSH Criteria (Does Not Significant Harm)
Economic activities Code(s)
Absolute
OpEx EUR
thousand
Proportion
of OpEx
Climate
change
mitigation
Climate
change
adaptation
Sustainable
use and
protection
of water
and marine
resources
Transition
to
a circular
economy
Pollution
prevention
and control
Protection
and
restoration of
biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Sustainable
use and
protection
of water
and marine
resources
Transition
to
a circular
economy
Pollution
prevention
and control
Protection
and
restoration of
biodiversity
and
ecosystems
Minimum
safeguards
Taxonomy-
aligned
proportion
of OpEx,
year 2022, %
Taxonomy-
aligned
proportion
of OpEx,
year 2021, %
Category
(enabling
activity)
Category
(transitional
activity)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned) N/A N/A N/A
Installation, maintenance and repair of
instruments and devices for measuring,
regulation and controlling energy
performance of buildings 7.5. 30 0% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% N/A N/A N/A
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 30 0% 0% N/A N/A N/A
A.2 Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Manufacture of low carbon technologies
for transport 3.3. 178 1%
Manufacture of other low carbon
technologies 3.6. 105 0%
Electricity generation using solar
photovoltaic technology 4.1. 2 0%
Construction, extension and operation
of water collection, treatment and supply
systems 5.1. 47 0%
Renewal of water collection, treatment
and supply systems 5.2. 244 1%
Construction, extension and operation of
waste water collection and treatment 5.3. 559 2%
Collection and transport of non-
hazardous waste in source segregated
fractions 5.5. 75 0%
Renovation of existing buildings 7.2. 212 1%
Installation, maintenance and repair of
energy efficiency equipment 7.3. 60 0%
Close to market research, development
and innovation 9.1. 3,223 12%
Professional services related to energy
performance of buildings 9.3. 7 0%
Hotels, holiday, camping grounds and
similar accommodation 2.1. 23 0%
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2) 4,734 17% 17% N/A N/A N/A
Total (A.1 + A.2) 4,764 17% 17% N/A N/A N/A
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of taxonomy-non-eligible activities 22,831 83%
Total (A + B) 27,595 100%
Proportion of OpEx / Total OpEx
Taxonomy-aligned per objective Taxonomy-eligible per objective
CCM 0% 9%
CCA 0% 8%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
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Share information
Share capital
The number of Suominen’s registered shares was
58,259,219 on December 31, 2023, equaling to a share
capital of EUR 11,860,056.00. Suominen has one series of
shares. Each share carries one vote in the Shareholders’
Meeting and right to an equally-sized dividend.
Suominen’s shares are affiliated in a book-entry system.
Share trading and price
The number of Suominen Corporation shares (SUY1V)
traded on Nasdaq Helsinki from January 1 to December
31, 2023, was 2,743,668 shares, accounting for 4.8% of
the average number of shares (excluding treasury shares).
The highest price was EUR 3.48, the lowest EUR 2.48, and
the volume-weighted average price EUR 2.85. The closing
price at the beginning of the review period, on January
2, 2023, was EUR 3.06 and the closing price on the last
trading date of the review period, on December 29, 2023,
was EUR 2.85.
The market capitalization (excluding treasury shares) was
EUR 164.4 million on December 31, 2023.
Authorizations of the Board of Directors
The AGM authorized the Board of Directors to decide
on the repurchase a maximum of 1,000,000 of the
company’s own shares. The company’s own shares shall
be repurchased otherwise than in proportion to the
holdings of the shareholders by using the non-restricted
equity through trading on regulated market organized by
Nasdaq Helsinki Ltd at the market price prevailing at the
time of acquisition. The shares shall be repurchased and
paid in accordance with the rules of Nasdaq Helsinki Ltd
and Euroclear Finland Ltd. The shares shall be repurchased
to be used in company’s share-based incentive programs,
in order to disburse the remuneration of the members
of the Board of Directors, for use as consideration in
acquisitions related to the company’s business, or to be
held by the company, to be conveyed by other means or
to be cancelled. The Board of Directors shall decide on
other terms and conditions related to the repurchase of
the company’s own shares. The repurchase authorization
shall be valid until June 30, 2024, and it revokes all earlier
authorizations to repurchase company’s own shares.
The AGM authorized the Board of Directors to decide
on issuing new shares and/or conveying the company’s
own shares held by the company and/or granting options
and other special rights referred to in Chapter 10, Section
1 of the Finnish Companies Act. New shares may be
issued, and the company’s own shares may be conveyed
to the company’s shareholders in proportion to their
current shareholdings in the company; or by waiving the
shareholder’s pre-emption right, through a directed share
issue if the company has a weighty financial reason to do
so, such as, for example, using the shares as consideration
in possible acquisitions or other arrangements related
to the company’s business, as financing for investments,
using shares as part of the company’s incentive program
or using the shares for disbursing the portion of the
Board members’ remuneration that is to be paid in shares.
The new shares may also be issued without payment to
the company itself. New shares may be issued and/or
company’s own shares held by the company, or its group
company may be conveyed at the maximum amount of
5,000,000 shares in aggregate.
The Board of Directors may grant options and other
special rights referred to in Chapter 10, Section 1 of the
Finnish Companies Act, which carry the right to receive
against payment new shares or own shares held by the
company. The right may also be granted to the company’s
creditor in such a manner that the right is granted on
condition that the creditor’s receivable is used to set off
the subscription price (“Convertible Bond”). However,
options and other special rights referred to in Chapter 10,
Section 1 of the Companies Act cannot be granted as part
of the company’s remuneration plan.
The maximum number of new shares that may be
subscribed and own shares held by the company that may
be conveyed by virtue of the options and other special
rights granted by the company is 5,000,000 shares in
total which number is included in the maximum number
stated above.
The authorizations shall revoke all earlier authorizations
regarding share issue and issuance of special rights
entitling to shares. The Board of Directors shall decide
on all other terms and conditions related to the
authorizations. The authorizations are valid until June 30,
2024.
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In accordance with the resolution by the Annual General
Meeting, in total 21,949 shares were transferred to the
members of the Board of Directors as their remuneration
payable in shares during the reporting period.
In February 2023, in accordance with the share-based
incentive plan, 189,783 shares were transferred to the
participants of the plan.
After these transactions, the maximum amount of the
authorization is 4,788,268 shares in aggregate.
Remuneration of the Board payable in shares
The AGM held on April 3, 2023, decided that 75% of
the annual remuneration of the members of the Board
of Directors is paid in cash and 25% in Suominen
Corporation’s shares. The shares were given out of the
treasury shares held by the company on May 10, 2023.
Share-based incentive plans for the
management and key employees valid in 2023
The Group management and key employees participate
in the company’s share-based long-term incentive plans.
The plans are described in more detail 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
2021–2023, 2022–2024 and 2023–2025. The aim of the
Performance Share Plan is to combine the objectives
of the shareholders and the persons participating in the
plan in order to increase the value of the company in
long-term, to build loyalty to the company and to offer
them competitive reward plans based on earning and
accumulating the company’s shares.
Performance Share Plan: Ongoing performance periods
Performance period 2021–2023 2022–2024 2023–2025
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 2024
Will be paid partly
in Suominen shares and
partly in cash in spring 2025
Will be paid partly
in Suominen shares and
partly in cash in spring 2026
Participants 15 people 21 people 23 people
Maximum number of shares 232,000 222,000 687,000
The President & CEO of the company must hold 50% of
the net number of shares given on the basis of the plan,
as long as his or her shareholding in total corresponds to
the value of his or her annual gross salary. A member of
the Executive Team must hold 50% of the net number of
shares given on the basis of the plan, as long as his or her
shareholding in total corresponds to the value of half of
his or her annual gross salary. Such a number of shares
must be held as long as the participant’s employment or
service in a group company continues.
The President & CEO’s share-based incentive plan
The Board of Directors of Suominen Corporation resolved
on May 19, 2023, to establish a new share-based incentive
plan for the company’s President & CEO. The aim of
the plan is to align the objectives of the shareholders
and the President & CEO in order to increase the value
of Suominen in the long-term, to retain the President
& CEO at the company, and to offer him a competitive
reward plan that is based on acquiring, receiving and
accumulating the company’s shares.
Under the plan the President & CEO is expected to own
or acquire up to 30,000 shares of Suominen Corporation
at a price formed in public trading on Nasdaq Helsinki.
Suominen will match the share investment by way of
the President & CEO receiving, without consideration,
up to 60,000 matching shares (gross, including also the
proportion to be paid in cash).
The plan includes three vesting periods, June 1,
2023–June 1, 2024, June 1, 2023–June 1, 2025, and
June 1, 2023–June 1, 2026. The potential reward will
be paid partly in shares and partly in cash in three equal
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installments after each vesting period, provided that the
President & CEO’s service in the company is in force at
the time of the reward payment. The cash proportion is
intended to cover taxes and tax-related costs arising from
the rewards to the President & CEO.
Shareholders
At the end of the review period, on December 31, 2023,
Suominen Corporation had in total 5,376 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 the largest shareholders is presented in the
consolidated financial statements Note 31 and Note 13.
Treasury shares
On December 31, 2023, Suominen Corporation held
566,760 treasury shares.
As a share-based incentive plan vested, in total 189,783
shares were transferred to the participants of the plan in
February.
In accordance with the resolution by the Annual
General Meeting (AGM), in total 21,949 shares were
transferred to the members of the Board of Directors
as their remuneration payable in shares during the
reporting period.
Notifications under Chapter 9, Section 10 of the
Securities Market Act
During the review period Suominen received no
notifications under Chapter 9, Section 5 of the Securities
Market Act.
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 offer. The President & CEO
had no separate contract to be applied if his contract
would have been terminated due to a public tender offer.
The principal terms and conditions of the service contract
of the President & CEO are presented in Note 31 of the
consolidated financial statements and in the Remuneration
Report 2023 of Suominen Corporation.
Composition of the Nomination Board
Suominen’s three largest registered shareholders Ahlstrom
Capital B.V., Etola Group Oy and Oy Etra Invest Ab have
nominated the following members to the Shareholders’
Nomination Board:
- Lasse Heinonen, President & CEO of A. Ahlström
Corporation, as a member appointed by Ahlstrom
Capital B.V.
- Mikael Etola, CEO, Etola-Yhtiöt, as a member appointed
by Etola Group Oy and Oy Etra Invest Ab
Jaakko Eskola, Chair of Suominen’s Board of Directors,
serves as the third member of the Nomination Board.
The shareholders entitled to appoint members to the
Nomination Board were determined on the basis of the
registered holdings in the company’s shareholders’ register
on September 1, 2023.
In its organizing meeting on September 4, 2023, the
Nomination Board elected Lasse Heinonen as the Chair of
the Nomination Board. The Nomination Board decided to
invite Peter Seligson, Chair of the Board of Directors of A.
Ahlström Corporation, to attend the Nomination Board’s
meetings as an advisor.
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Proposals of the Nomination Board to
the Annual General Meeting 2024
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, Aaron Barsness, Björn
Borgman, Nina Linander and Laura Remes would be
re-elected as members of the Board of Directors and that
Charles Héaulmé would be elected as a new member of
the Board of Directors.
Jaakko Eskola, the current Chair of the Board of
Directors, has informed that he is not available for
re-election to the Board of Directors.
Charles Héaulmé, born 1966, B.Sc. (Business
Administration), French citizen, currently works as the
President and CEO of Huhtamäki Oyj. Prior to that he
has held a number of executive positions at Tetra Pak in
Europe and Americas.
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 A. Ahlström
Corporation. The largest shareholder of Suominen
Corporation, Ahlstrom Capital B.V. is a group company of
A. Ahlström Corporation.
The Nomination Board proposes to the Annual General
Meeting that Charles Héaulmé would be 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 proposes that the remuneration
of the Board of Directors would be as follows: the
Chair would be paid an annual fee of EUR 74,000
(2023: EUR 70,000), the Deputy Chair an annual fee of
EUR 45,000 (2023: 33,000) and other Board members
an annual fee of EUR 35,000 (2023: EUR 33,000). 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% of the annual fees is paid in cash and 25% 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 2024 of the company is published.
Compensation for expenses will be paid in accordance
with the company’s valid travel policy.
Changes in the Executive team
Klaus Korhonen, SVP, HR & Legal acted as interim
President & CEO until March 31, 2023.
Toni Tamminen, CFO, left Suominen on February 3, 2023.
Tommi Björnman started as the President & CEO on
April 1, 2023.
Janne Silonsaari started as the CFO on June 1, 2023.
Jonni Friman started as SVP, Transformation Management
Office on June 1, 2023.
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Lynda Kelly, SVP, Americas & Business Development, left
Suominen on August 22, 2023. Markku Koivisto, SVP,
Europe & R&D, was appointed as interim SVP, Americas,
until October 31, 2023.
Thomas Olsen started as SVP, Americas on November 1,
2023.
Annual General Meeting
The Annual General Meeting (AGM) of Suominen
Corporation was held on April 3, 2023.
The AGM adopted the Financial Statements and the
Consolidated Financial Statements for the financial
year 2022 and discharged the members of the Board of
Directors and the President & CEO from liability for the
financial year 2022. The AGM approved the Remuneration
Report for the governing bodies. The AGM also approved
the amendment of the company’s Articles of Association
in such a way that it enables the organization of General
Meetings in the future also entirely without a meeting
venue as a remote meeting.
The AGM decided, in accordance with the proposal by
the Board of Directors, that a dividend of EUR 0.10 per
share will be paid.
The AGM confirmed the remuneration of the Board of
Directors. The Chair will be paid an annual fee of EUR
70,000 and the Deputy Chair and other Board members an
annual fee of EUR 33,000. 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.
75% of the remuneration is paid in cash and 25% 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. Aaron Barsness, Mr. Björn Borgman, Mr. Jaakko Eskola,
Ms. Nina Linander were re-elected as members of the
Board. Ms. Laura Remes was elected as a new member of
the Board.
Mr. Jaakko Eskola was re-elected as the Chair of the
Board of Directors.
Ernst & Young Oy, Authorised Public Accountant
firm, was re-elected as the auditor of the company for
the next term of office in accordance with the Articles
of Association. Ernst & Young Oy appointed Mr. Toni
Halonen, Authorised Public Accountant, as the principally
responsible auditor of the company.
The AGM authorized the Board of Directors to decide
on the repurchase of the company’s own shares and to
resolve on the issuance of shares and granting of options
and the issuance of special rights entitling to shares. The
terms and conditions of the authorization are explained
earlier in this report.
Suominen published a stock exchange release on April 3,
2023, concerning the resolutions of the Annual General
Meeting and the organizing meeting of the Board of
Directors.
In compliance with the resolution of the Annual General
Meeting, on April 14, 2023, Suominen paid out dividends
in total of EUR 5.8 million for 2022, corresponding to
EUR 0.10 per share.
Organizing meeting and permanent
committees of the Board of Directors
In its organizing meeting held after the AGM, the Board
of Directors elected Andreas Ahlström as Deputy Chair of
the Board.
The Board of Directors elected from among its members
the members for the Audit Committee and Personnel and
Remuneration Committee. Nina Linander was re-elected
as the Chair of the Audit Committee and Andreas Ahlström
was re-elected as member. Laura Remes was elected as a
new member. Jaakko Eskola was re-elected as the Chair
of the Personnel and Remuneration Committee and Björn
Borgman and Aaron Barsness were re-elected as members.
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
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cause production losses and delivery problems. Ongoing
maintenance and investments aiming to extend the
lifetime of the assets are an essential part of ensuring the
operational efficiency of the existing production lines.
Suominen’s operations could be disrupted due to
abrupt and unforeseen events beyond the company’s
control, such as power outages or fire and water damage.
Suominen may not be able to control such events through
predictive actions, which could lead to interruptions
in business. Risks of this type are insured in order to
guarantee the continuity of operations. As Suominen
has valid property damage and business interruption
insurances, 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 different product groups. Products
based on new technologies and imports from countries
of lower production costs may reduce Suominen’s
competitive edge. If Suominen is not able to compete
with an attractive product offering, it may lose some of its
market share. Competition may lead to increased pricing
pressure on the company’s products.
Price and availability of raw 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
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 2023, the Group’s ten largest
customers accounted for 69.9% (64.3%) of the Group’s net
sales. Long-term contracts are preferred with the largest
customers. In practice, the customer relationships are
long-term and last for several years. Customer-related
credit risks are managed in accordance with a credit
policy approved by the Board of Directors. Credit limits are
confirmed for customers on the basis of credit ratings and
customer history.
The demand for Suominen’s products depends on
possible changes in consumer preferences. Historically,
such changes have had mainly a positive impact
on Suominen, as they have resulted in the growing
demand for products made of nonwovens. For example,
the COVID-19 pandemic increased the demand for
nonwovens for cleaning and disinfecting wipes. However,
certain factors, including consumers’ attitude towards
the use of products made even partially of oil-based
raw materials, or their perception on the sustainability
of disposable products in general, might change the
consumers’ buying habits. Suominen monitors the
consumer trends proactively and develops its product
offering accordingly. The company has had biodegradable,
100% plant-based nonwovens in its portfolio for over 15
years and hence is well positioned to respond to changes
in customer preferences related to sustainability and
climate change.
Generally, the demand for nonwovens for wipes has been
resilient to changing economic conditions. However, it is
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conceivable that high consumer price inflation could lead
to a decline in end consumer demand for wiping products
as the consumers’ available income effectively decreases.
Regarding the war in Ukraine, the direct impact to
Suominen’s business is minor as we have no customers
nor suppliers in Russia, Belarus or Ukraine. Suominen is
mostly affected by the indirect economic impacts of the
war which contribute to the cost inflation.
Changes in legislation, political environment,
or economic conditions
Suominen’s business and products can be affected
directly or indirectly by political decisions and changes
in government regulations for example in areas such as
environmental policy or waste legislation. An example of
such legislation is the EU’s Single-Use Plastics Directive
that focuses on reducing marine litter. The potential
for similar regulations to expand worldwide exists. This
creates demand for more sustainable products, and
Suominen is well placed to respond to this increasing
demand.
Global political developments could have an adverse
effect on Suominen. For instance, a political decision that
constrains the global free trade may significantly impact
the availability and price of certain raw materials, which
would in turn affect Suominen’s business and profitability.
Suominen’s geographical and customer-industry diversity
provide partial protection against this risk.
The relevance of the United States in Suominen’s
business operations increases the significance of the
exchange rate risk related to USD in the Group’s total
foreign exchange position. Suominen hedges this foreign
exchange position in accordance with its hedging policy.
The risks that are characteristic to South American
region, including significant changes in political
environment or exchange rates, could have an impact on
Suominen’s operations in Brazil.
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.
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 of
the discounted projected future cash flows. Actual cash
flows can differ from the discounted projected future cash
flows. Uncertainties related to the projected future cash
flows include, among others, the long economic useful life
of the assets and changes in the forecast sales prices of
Suominen’s products, production costs as well as discount
rates used in testing. Due to the uncertainty inherent in the
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future, it is possible that Suominen’s recoverable amounts
will be insufficient to cover the carrying amounts of assets,
particularly goodwill. If this happens, it will be necessary to
recognize an impairment loss, which, when implemented,
will weaken the result and equity. Goodwill impairment
testing has been described in the consolidated financial
statements.
Non-financial risks and their management
The assessment of Suominen’s most significant risks also
covers significant non-financial risks. A typical effect of
the realization of a non-financial risk would be a negative
reputation effect. Suominen’s Code of Conduct guides our
all operations. Suominen requires that all 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 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. 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
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
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 offer, 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.
Corruption and bribery risks are assessed at Suominen
as part of our enterprise risk management process which
covers all Suominen locations globally. Accordingly,
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100% of our operations are assessed for risks related to
corruption. No significant risk has been identified.
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.
We see some positive signals from the market and
customers, but the overall global economic uncertainty
and fierce competition continue to make the longer-term
visibility challenging. It remains to be seen how the current
economic climate impacts the end consumer demand and
consumer preferences regarding wipes. Historically, the
wipes market has been rather steady despite the general
economic situation.
Instabilities in Israel and lately in Suez Canal, and the
war in Ukraine continue to generate uncertainty globally.
Possible impacts to Suominen are expected to be indirect
and we continue to monitor the situations.
Information on the separate financial
statements of the parent company
Key ratios of the parent company
EUR thousand 2023 2022 2021
Net sales 23,264 22,610 25,869
Operating profit/loss 384 -1,491 7,138
% of net sales 1.7 -6.6 27.6
Net financial expenses 6,712 11,069 14,352
Profit/loss before appropriations
and income taxes 7,096 9,578 21,490
Profit/loss for the period 6,017 7,988 15,248
Return on invested capital, % 3.5 1.5 4.5
Salaries -4,021 -4,573 -3,436
Average number of personnel 35 31 32
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 23.3
million (22.6) and operating profit EUR 0.4 million (-1.5).
Net financial expenses were EUR +6.7 million (+11.1). Profit
for the period was EUR 6.0 million (8.0). There are no
related party loans except loans to other Suominen group
companies.
In the financial year 2023, the parent company had on
average 35 (31) employees and at the end of the year 37
(33) employees.
Outlook
Suominen expects that its comparable EBITDA (earnings
before interest, taxes, depreciation and amortization)
in 2024 will improve from 2023. In 2023, Suominen’s
comparable EBITDA was EUR 15.8 million.
Proposal by the Board of Directors for
the use of the profit
The profit of the financial year 2023 of Suominen
Corporation, the parent company of Suominen Group,
was EUR 6,017,124.66. The funds distributable as dividends,
including the profit for the period, were EUR 16,338,510
and total distributable funds were EUR 92,030,846.
The Board of Directors proposes that a dividend of
EUR 0.10 per share shall be distributed for the financial
year 2023 and that the profit shall be transferred to
retained earnings.
On February 5, 2024, the company had 57,692,459
issued shares, excluding treasury shares. With this number
of shares, the total amount of dividends to be distributed
would be EUR 5,769,245,90.
There have been no significant changes in the
company’s financial position after the end of the
review period.
The record date is April 8, 2024, and the dividend will be
paid on April 15, 2024.
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Corporate Governance Statement,
Remuneration Report and Statement
on Non-financial Information
The Corporate Governance Statement 2023 and
Remuneration Report 2023 have been disclosed separately
from this Report by the Board of Directors at www.
suominen.fi> Investors > Corporate Governance. Both are
included also in the company’s Annual Report 2023.
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 Report by the
Board of Directors.
Events after the reporting period
The Board of Directors of Suominen Corporation
resolved on a new share-based incentive plan for
management and key employees on February 5, 2024
The Board of Directors of Suominen Corporation has
resolved to establish a new share-based incentive plan for
key employees of the group. The purpose of the plan is
to align the interests of the company’s shareholders and
key employees to increase the company’s value in the
long-term, to commit key employees to implement the
company’s strategy, objectives and long-term interest, and
to reward them for high performance.
The Performance Share Plan 2024–2028 consists of
three performance periods, covering the financial years
2024–2026, 2025–2027 and 2026–2028 respectively.
The Board of Directors will resolve annually on the
commencement and details of a performance period.
In the plan, the target group has an opportunity
to earn Suominen shares based on performance.
The performance criteria of the performance period
2024–2026 are tied to Absolute Total Shareholder Return
(weight 40%) covering the years 2024–2026, Relative
Total Shareholder Return (weight 40%) covering the years
2024–2026, and operative performance and sustainability
goal (weight 20%) covering the year 2024 and measuring
fulfilment of the company’s target to improve its raw
material efficiency. The potential rewards from the plan
will be paid after the end of the performance period.
The value of the rewards to be paid on the basis of
the plan corresponds to a maximum total of 1,090,349
shares of Suominen, including also the proportion to be
paid in cash. The target group in the performance period
2024–2026 consists of 27 key employees, including the
CEO and other members of the Executive Management
Team.
The potential reward will be paid partly in Suominen’s
shares and partly in cash. The cash proportion of the
reward is intended to cover taxes and statutory social
security contributions arising from the reward to the key
employee. As a rule, no reward will be paid if the key
employee’s employment or director contract terminates
before the reward payment.
The Executive Management Team member must hold
50% of the received shares, until the value of the Executive
Management Team member’s total shareholding in
Suominen equals to 50% of their annual base salary for
the calendar year preceding the payment of the reward.
Respectively, the CEO must hold 50% of the received
shares, until the value of the CEO’s total shareholding
in Suominen equals to 100% of the CEO’s annual base
salary for the preceding calendar year. Such number of
Suominen shares must be held as long as the membership
in the Executive Management Team or the position as the
CEO continues.
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Note
December 31,
2023
December 31,
2022
ASSETS
Non-current assets
Goodwill 5 15,496 15,496
Intangible assets 6 6,084 9,709
Property, plant and equipment 7 112,727 116,195
Right-of-use assets 22 11,109 11,902
Equity instruments 9 421 421
Other non-current receivables 11 83 93
Deferred tax assets 27 2,048 693
Total non-current assets 147,967 154,510
Current assets
Inventories 10 37,914 63,261
Trade receivables 11 62,325 66,648
Other current receivables 11 7,345 8,857
Assets for current tax 27 2,128 662
Cash and cash equivalents 58,755 49,508
Total current assets 168,467 188,935
TOTAL ASSETS 316,434 343,445
Note
December 31,
2023
December 31,
2022
EQUITY AND LIABILITIES
Equity
Share capital 13 11,860 11,860
Share premium account 24,681 24,681
Reserve for invested unrestricted
equity 75,692 75,692
Fair value and other reserves 316 265
Exchange differences 111 2,678
Retained earnings 12,251 30,740
Total equity attributable to owners
of the parent 124,912 145,916
Liabilities
Non-current liabilities
Deferred tax liabilities 27 9,362 11,730
Liabilities from defined benefit plans 24 179 424
Non-current provisions 15 564 1,950
Non-current lease liabilities 14 9,711 11,215
Debenture bonds 14 49,449 49,295
Total non-current liabilities 69,265 74,614
Current liabilities
Current provisions 15 3,870 −
Current lease liabilities 14 3,117 2,855
Other current interest-bearing
liabilities 14 40,000 40,000
Liabilities for current tax 27 148 289
Trade payables and other current
liabilities 16 75,122 79,771
Total current liabilities 122,257 122,915
Total liabilities 191,522 197,529
TOTAL EQUITY AND LIABILITIES 316,434 343,445
Consolidated financial
statements (IFRS) 2023
Consolidated statement of financial position
EUR thousand
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Note
January 1 –
December 31,
2023
January 1 –
December 31,
2022
Net sales 19 450,851 493,298
Cost of goods sold -428,122 -474,718
Gross profit 22,729 18,579
Other operating income 21 4,802 5,739
Sales, marketing and administration
expenses -28,497 -28,932
Research and development
expenses -3,851 -3,503
Other operating expenses 21 -2,700 -841
Operating profit -7,517 -8,958
Net financial expenses 26 -5,987 -2,923
Profit before income taxes -13,504 -11,881
Income taxes 27 719 -1,983
Profit for the period -12,786 -13,863
Earnings per share, EUR
Basic 29 -0.22 -0.24
Diluted -0.22 -0.24
January 1 –
December 31,
2023
January 1 –
December 31,
2022
Profit for the period -12,786 -13,863
Other comprehensive income:
Other comprehensive income that will
be subsequently reclassified to profit
or loss:
Exchange differences -2,991 8,873
Income taxes related to other
comprehensive income 424 -618
Total -2,567 8,255
Other comprehensive income that will
not be subsequently reclassified to
profit or loss:
Remeasurements of defined
benefit plans -22 137
Income taxes related to other
comprehensive income − -125
Total -22 12
Total other comprehensive income -2,589 8,267
Total comprehensive income for the
period -15,375 -5,596
Consolidated statement
of profit or loss
EUR thousand
Consolidated statement
of comprehensive income
EUR thousand
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Share capital
Share
premium
account
Reserve for
invested
unrestricted
equity
Exchange
differences
Fair value and
other reserves
Retained
earnings
Total equity
attributable
to owners of
the parent
Equity January 1, 2023 11,860 24,681 75,692 2,678 265 30,740 145,916
Profit for the period − − − − − -12,786 -12,786
Other comprehensive income − − − -2,567 − -22 -2,589
Total comprehensive income − − − -2,567 − -12,808 -15,375
Distribution of dividend − − − − − -5,767 -5,767
Share-based payments − − − − − 88 88
Conveyance of treasury shares − − − − − 49 49
Transfers − − − − 51 -51 −
Equity December 31, 2023 11,860 24,681 75,692 111 316 12,251 124,912
Share capital
Share
premium
account
Reserve for
invested
unrestricted
equity
Exchange
differences
Fair value and
other reserves
Retained
earnings
Total equity
attributable
to owners of
the parent
Equity January 1, 2022 11,860 24,681 75,692 -5,577 -7 56,549 163,199
Profit for the period − − − − − -13,863 -13,863
Other comprehensive income − − − 8,255 − 12 8,267
Total comprehensive income − − − 8,255 − -13,851 -5,596
Distribution of dividend − − − − − -11,492 -11,492
Share-based payments − − − − − 106 106
Acquisition of treasury shares − − − − − -352 -352
Conveyance of treasury shares − − − − − 52 52
Transfers − − − − 272 -272 −
Equity December 31, 2022 11,860 24,681 75,692 2,678 265 30,740 145,916
Consolidated statement of changes in equity
EUR thousand
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Note
January 1−December 31,
2023
January 1−December 31,
2022
Cash flow from operations
Profit for the period -12,786 -13,863
Total adjustments to profit for the period 30 26,612 28,037
Cash flow before changes in net working capital 13,826 14,174
Change in net working capital 25,703 7,753
Financial items -4,954 -4,745
Income taxes -3,851 -3,156
Cash flow from operations 30,724 14,027
Cash flow from investments
Investments in property, plant and equipment and intangible assets -11,062 -9,764
Sales proceeds from property, plant and equipment and intangible assets 36 30
Cash flow from investments -11,027 -9,734
Cash flow from financing
Repayment of non-current interest-bearing liabilities 14 − -85,000
Drawdown of current interest-bearing liabilities 14 240,000 40,000
Repayment of current interest-bearing liabilities 14 -243,271 -3,003
Acquisition of treasury shares − -379
Distribution of dividend and return of capital -5,767 -11,492
Cash flow from financing -9,038 -59,875
Change in cash and cash equivalents 10,659 -55,582
Cash and cash equivalents at the beginning of the period 49,508 101,357
Effect of changes in exchange rates -1,412 3,732
Change in cash and cash equivalents 10,659 -55,582
Cash and cash equivalents at the end of the period 58,755 49,508
Consolidated statement of cash flows
EUR thousand
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Notes to the consolidated
financial statements
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KEY RATIOS PER SHARE
Key ratios per share are share-issue adjusted.
2023 2022 2021
Earnings per share, EUR -0.22 -0.24 0.36
Earnings per share, EUR, diluted -0.22 -0.24 0.36
Cash flow from operations per share, EUR 0.53 0.24 0.19
Equity per share, EUR 2.17 2.54 2.85
Price per earnings per share (P/E) ratio -12.85 -12.43 14.38
Dividend payout ratio, % -45.1 -41.4 55.5
Dividend yield, % 3.51 3.33 3.86
Number of shares, end of period, excluding treasury shares 57,692,459 57,480,727 57,293,235
Average number of shares excluding treasury shares 57,656,044 57,439,615 57,579,440
Average share-issue adjusted number of shares excluding treasury shares 57,656,044 57,439,615 57,579,440
Share price, end of period, EUR 2.85 3.00 5.18
Share price, period low, EUR 2.48 2.36 4.25
Share price, period high, EUR 3.48 5.27 6.41
Volume-weighted average price during the period, EUR 2.85 3.57 5.48
Market capitalization, EUR million 164.4 172.4 296.8
Number of traded shares during the period 2,743,668 10,902,032 17,714,203
Number of traded shares during the period, % of average number of shares (share turnover) 4.8 19.0 30.8
* 2023 the proposal of the Board of Directors to the Annual General Meeting.
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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 29.
Cash flow from operations per share
Cash flow from operations per share =
Cash flow from operations
Share-issue adjusted number of shares excluding treasury
hares, 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
2023 2022
Cash flow from operations, EUR thousand 30,724 14,027
Share-issue adjusted number of shares excluding treasury shares, end of
the reporting period 57,692,459 57,480,727
Cash flow from operations per share, EUR 0.53 0.24
2023 2022
Total equity attributable to owners of the parent, EUR thousand 124,912 145,916
Share-issue adjusted number of shares excluding treasury shares, end of
the reporting period 57,692,459 57,480,727
Equity per share, EUR 2.17 2.54
Reference
Consolidated statement of cash flows
Note 13
Reference
Consolidated statement of financial
position
Note 13
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Dividend yield, %
Dividend yield, % =
Dividend per share x 100
Share price at end of the period
Dividend payout ratio, %
Dividend payout ratio, % =
Dividend 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
2023 2022
Dividend per share x 100 10.00 10.00
Share price at end of the period, EUR 2.85 3.00
Dividend yield, % 3.51 3.33
2023 2022
Dividend per share x 100 10.00 10.00
Basic earnings per share, EUR -0.22 -0.24
Dividend payout ratio, % -45.1 -41.4
2023 2022
Share price at end of the period, EUR 2.85 3.00
Basic earnings per share, EUR -0.22 -0.24
Price per earnings per share (P/E) -12.85 -12.43
Reference
The proposal by the Board
Note 29
Reference
Note 13
Reference
Note 13
Note 29
Market capitalization
Market capitalization =
Number of shares at the end of reporting period excluding treasury
shares x share price at the end of period
2023 2022
Number of shares at the end of reporting period excluding treasury shares 57,692,459 57,480,727
Share price at end of the period, EUR 2.85 3.00
Market capitalization, EUR million 164.4 172.4
Reference
Note 13
Note 13
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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
2023 2022
Number of shares traded during the period 2,743,668 10,902,032
Average number of shares excluding treasury shares 57,656,044 57,439,615
Share turnover, % 4.8 19.0
Reference
Note 13
Note 13
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Income statement
EUR
Note
January 1−December 31,
2023
January 1−December 31,
2022
Net sales 23,263,727.25 22,609,754.41
Cost of goods sold -3,737,356.29 -3,379,969.90
Gross profit 19,526,370.96 19,229,784.51
Other operating income 2 389,985.58 667,272.92
Sales and marketing expenses -1,771,352.90 -1,624,546.96
Research and development -1,124,270.20 -1,090,526.00
Administration expenses -9,210,342.61 -10,394,842.92
Other operating expenses 2 -7,426,244.77 -8,278,073.95
Operating profit 384,146.06 -1,490,932.40
Financial income 6 14,634,238.97 15,715,322.88
Financial expenses 6 -7,922,088.66 -4,646,671.96
Total financial income and expenses 6,712,150.31 11,068,650.92
Profit before appropriations and income taxes 7,096,296.37 9,577,718.52
Change in depreciation difference 7 81,620.37 -259,932.91
Group contributions 7 -1,125,000.00 −
Income taxes 8 -35,792.08 -1,329,361.33
Profit for the period 6,017,124.66 7,988,424.28
Parent company financial
statements (FAS)
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Balance sheet
EUR
Note December 31, 2023 December 31, 2022
ASSETS
Non-current assets
Intangible assets 5, 9 5,038,299.43 7,636,768.63
Tangible assets 5, 10 750,812.36 458,557.01
Investments
Shares in subsidiaries 11 113,363,783.56 113,363,783.56
Other investments 11 192.06 192.06
Loan receivables
Loan receivables from group companies 12 86,478,329.49 69,941,308.83
Total non-current assets 205,631,416.90 191,400,610.09
Current assets
Loan receivables
Loan receivables from group companies 12 4,000,000.00 23,718,266.50
Trade receivables 12 70,002.42 105,462.35
Other current receivables 12 2,920,280.88 2,108,867.98
Cash and cash equivalents 53,688,029.66 42,440,580.46
Total current assets 60,678,312.96 68,373,177.29
TOTAL ASSETS 266,309,729.86 259,773,787.38
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EUR
Note December 31, 2023 December 31, 2023
EQUITY AND LIABILITIES
Equity
Share capital 14 11,860,056.00 11,860,056.00
Share premium account 24,680,587.83 24,680,587.83
Reserve for invested unrestricted equity 75,692,335.90 75,692,335.90
Retained earnings 10,321,384.99 8,100,011.71
Profit for the period 6,017,124.66 7,988,424.28
Total equity 13 128,571,489.38 128,321,415.72
Untaxed reserves
Depreciation difference 1,194,500.58 1,276,120.95
Liabilities
Non-current liabilities
Interest-bearing liabilities
Debentures 15 50,000,000.00 50,000,000.00
Total non-current liabilities 50,000,000.00 50,000,000.00
Current liabilities
Interest-bearing liabilities
Loans from financial institutions 15 40,000,000.00 40,000,000.00
Current loans from group companies 15 42,145,925.92 36,205,336.41
Trade payables and other current liabilities 16 4,397,813.98 3,970,914.30
Total current liabilities 86,543,739.90 80,176,250.71
Total liabilities 136,543,739.90 130,176,250.71
TOTAL EQUITY AND LIABILITIES 266,309,729.86 259,773,787.38
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Cash flow statement
EUR thousand
Note
January 1−December 31,
2023
January 1−December 31,
2022
Cash flow from operations
Profit for the period 6,017 7,988
Adjustments to profit for the period 18 -2,843 -6,626
Cash flow from operations before change in net working capital 3,174 1,363
Increase (-) or decrease (+) in trade and other receivables -23 18
Increase (+) or decrease (-) in interest-free current liabilities -597 1,124
Cash flow from operations before payments of financial items and income taxes 2,554 2,504
Paid and received interests and other financial items 1,535 4,894
Group contribution paid − -5,180
Paid income taxes -1,079 -2,114
Cash flow from operations 3,010 104
Cash flow from investments
Capital expenditure 9, 10 -478 -794
Dividend income from subsidiaries 6 5,891 4,113
Cash flow from investments 5,413 3,318
Cash flow from financing
Change in non-current interest-bearing liabilities 15 − -85,000
Change in current interest-bearing liabilities 15 6,573 52,718
Change in non-current loan receivables -16,537 -15,238
Change in current loan receivables 19,639 -788
Acquisition of treasury shares − -379
Distribution of dividend and return of capital 13 -5,767 -11,492
Cash flow from financing 3,908 -60,179
Change in cash and cash equivalents 12,332 -56,757
Cash and cash equivalents 1 January 42,441 95,872
Exchange difference on cash and cash equivalents -1,084 3,326
Change in cash and cash equivalents 12,332 -56,757
Cash and cash equivalents 31 December 53,688 42,441
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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. 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 differences 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
effective 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 17 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 difference.
This difference 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 1−
December 31,
2023
January 1−
December 31,
2022
Other operating income
Operating subsidies and grants
received 140 302
Other operating income 250 366
Total 390 667
Other operating expenses
Services purchased from
group companies -7,426 -7,895
Losses from currency derivatives − -373
Other operating expenses 0 -10
Total -7,426 -8,278
NOTE 3 Personnel expenses
EUR thousand
January 1−
December 31,
2023
January 1−
December 31,
2022
Salaries -4,021 -4,573
Pension expenses -673 -717
Other personnel costs -181 -175
Total -4,875 -5,465
Average number of personnel 35 31
Number of personnel, end
of period 37 33
Management remuneration
Management remuneration is presented in Note 31 of the
consolidated financial statements.
NOTE 4 Audit fees
EUR thousand
January 1−
December 31,
2023
January 1−
December 31,
2022
Statutory audit -159 -133
Tax consulting − -15
Other services -4 -10
Total -163 -158
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 1−
December 31,
2023
January 1−
December 31,
2022
Depreciation, amortization and
impairment by function
Cost of goods sold -1,063 -1,056
Sales and marketing expenses -461 -470
Research and development -108 -134
Administration expenses -1,158 -1,204
Total -2,790 -2,865
Depreciation, amortization and
impairment by asset category
Machinery and equipment -40 -39
Intangible rights -2,750 -2,827
Total -2,790 -2,865
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NOTE 6 Financial income and expenses
EUR thousand
January 1−December 31,
2023
January 1−December 31,
2022
Interest income from group companies 7,421 5,438
Interest income from others 1,225 255
Dividend income from group companies 5,891 4,113
Other financial income from group companies 97 100
Net currency exchange differences -2,649 5,809
Interest expenses to group companies -525 -72
Interest expenses to others -3,294 -2,857
Other financial expenses to others -1,454 -1,718
Total 6,712 11,069
NOTE 7 Appropriations
EUR thousand
January 1−December 31,
2023
January 1−December 31,
2022
Increase (-) or decrease (+) in cumulative depreciation difference 82 -260
Given group contributions -1,125 −
Total -1,043 -260
NOTE 8 Income taxes
EUR thousand
January 1−December 31,
2023
January 1−December 31,
2022
Income taxes for the financial year -32 -1,351
Withholding taxes and other direct taxes − -3
Income taxes from previous years -4 24
Total -36 -1,329
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NOTE 9 Intangible assets
EUR thousand
Intangible rights
Advance payments
and construction
in progress Total 2023 Total 2022
Acquisition cost January 1 21,565 − 21,565 30,721
Additions 103 48 151 404
Decreases and disposals -422 − -422 -9,560
Reclassifications 12 -12 − −
Acquisition cost December 31 21,258 36 21,295 21,565
Accumulated amortization January 1 -13,928 − -13,928 -20,662
Amortization for the period -2,750 − -2,750 -2,827
Decreases and disposals 422 − 422 9,560
Accumulated amortization December 31 -16,256 − -16,256 -13,928
Carrying amount December 31 5,002 36 5,038 7,637
NOTE 10 Tangible assets
EUR thousand
Land and
water areas
Machinery and
equipment
Other tangible
assets
Advance payments
and construction
in progress Total 2023 Total 2022
Acquisition cost January 1 0 285 31 360 676 472
Additions − 24 − 308 332 404
Decreases and disposals − -1 − − -1 -200
Acquisition cost December 31 0 308 31 668 1,007 676
Accumulated depreciation
January 1 − -207 -11 − -217 -378
Depreciation for the period − -38 -2 − -40 -39
Decreases and disposals − 1 − − 1 200
Accumulated depreciation
December 31 − -243 -13 − -256 -217
Carrying amount December 31 0 65 18 668 751 459
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NOTE 11 Investments
EUR thousand
Shares in group
companies
Other
investments Total 2023 Total 2022
Carrying amount January 1 113,364 0 113,364 113,364
Carrying amount December 31 113,364 0 113,364 113,364
Group companies are presented in Note 8 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 25.0 1 8 0 N/A N/A
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NOTE 12 Receivables
EUR thousand
December 31, 2023 December 31, 2022
Non-current receivables from group companies
Interest-bearing receivables 86,478 69,941
Total 86,478 69,941
Total non-current receivables 86,478 69,941
Current receivables
Other receivables 79 82
Prepaid expenses and accrued income
Income taxes 1,449 407
Transaction costs of loans 735 1,025
Prepaid expenses 657 595
Total prepaid expenses and accrued income 2,841 2,027
Current receivables from group companies
Trade receivables 70 105
Interest-bearing receivables 4,000 23,718
Total 4,070 23,824
Total other current receivables 6,990 25,933
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NOTE 13 Equity
EUR thousand
December 31, 2023 December 31, 2022
Share capital January 1 and December 31 11,860 11,860
Share premium account January 1 and December 31 24,681 24,681
Reserve for invested unrestricted equity January 1 and December 31 75,692 75,692
Retained earnings January 1 16,088 19,944
Distribution of dividend -5,767 -11,492
Acquisition of treasury shares − -352
Retained earnings December 31 10,321 8,100
Profit for the period 6,017 7,988
Equity December 31 128,571 128,321
Distributable funds
EUR December 31, 2023
Retained earnings December 31 10,321,385
Reserve for invested unrestricted equity December 31 75,692,336
Profit for the period 6,017,125
Distributable funds 92,030,846
Funds available for dividend distribution
EUR
Retained earnings December 31 10,321,385
Profit for the period 6,017,125
Funds available for dividend distribution 16,338,510
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NOTE 14 Share capital
Share capital and shares are presented in Note 13
of the consolidated financial statements.
NOTE 15 Interest-bearing liabilities
EUR thousand
December 31,
2023
December 31,
2022
Non-current interest-bearing
liabilities
Debentures 50,000 50,000
Total non-current interest-bearing
liabilities 50,000 50,000
Current interest-bearing liabilities
Loans from financial institutions 40,000 40,000
Loans from group companies 42,146 36,205
Total current interest-bearing
liabilities 82,146 76,205
Total interest-bearing liabilities 132,146 126,205
Repayments of external non-current interest-bearing liabilities
2024 2025 2026 2027 2028
Debentures − − − 50,000 −
NOTE 16 Interest-free liabilities
EUR thousand
December 31,
2023
December 31,
2022
Current interest-free liabilities
Trade payables 1,245 1,132
Other current liabilities 154 141
Total current interest-free liabilities 1,399 1,273
Accrued expenses
Accrued interest expenses 626 734
Accrued personnel expenses 894 1,661
Other accrued expenses 353 302
Total accrued expenses 1,874 2,697
Liabilities to group companies
Other liabilities to group companies 1,125 −
Total 1,125 −
Total current interest-free liabilities 4,398 3,971
NOTE 17 Contingent liabilities
EUR thousand
December 31,
2023
December 31,
2022
Guarantees
On behalf of group companies 12,888 13,855
On own behalf − 28
Total 12,888 13,883
Guarantees on behalf of group companies are guarantees
given to suppliers and lessors.
Rental and leasing obligations
Falling due within next 12 months 221 169
Falling due later 1,360 57
Total 1,581 227
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NOTE 18 Adjustments to cash flow statement
EUR thousand
January 1−
December 31,
2023
January 1−
December 31,
2022
Adjustment to profit / loss for the period
Change in depreciation difference -82 260
Group contributions 1,125 −
Financial income and expenses -6,712 -11,069
Income taxes 36 1,329
Depreciation and amortization 2,790 2,865
Other non-cash items in profit for the period − -12
Total adjustments to profit for the period -2,843 -6,626
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 office 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
Name of parent entity Suominen Oyj
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Proposal by the board of
directors for distribution
of funds
The profit of the financial year 2023 of Suominen Corporation, the parent company of Suominen Group, was
EUR 6,017,124.66. The funds distributable as dividends, including the profit for the period, were EUR 16,338,510 and total
distributable funds were EUR 92,030,846.
The Board of Directors proposes that a dividend of EUR 0.10 per share shall be distributed for the financial year 2023
and that the profit shall be transferred to retained earnings.
On February 5, 2024, the company had 57,692,459 issued shares, excluding treasury shares. With this number of
shares, the total amount of dividends to be distributed would be EUR 5,769,245,90.
There have been no significant changes in the company’s financial position after the end of the review period.
Helsinki February 5, 2024
Jaakko Eskola
Chair of the Board
Aaron Barsness
Tommi Björnman
President and CEO
Andreas Ahlström
Nina Linander
Björn Borgman
Laura Remes
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Report on the Audit of the Financial
Statements
Opinion
We have audited the financial statements of Suominen
Corporation (business identity code 1680141-9) for the
year ended 31 December, 2023. 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 material
accounting policy information, 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 IFRS Accounting Standards 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 23 to the consolidated
financial statements and Note 4 to the parent company
financial statements.
We believe that the audit evidence we have obtained
is sufficient 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.
Auditor’s report (Translation of the Finnish original)
To the Annual General Meeting of Suominen Corporation
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KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Revenue recognition
We refer to the Group’s Note 19
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-off) 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-off 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 IFRS Accounting Standards 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
the 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 sufficient
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 effectiveness 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 sufficient 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
185Suominen Annual Report 2023
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for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit
opinion.
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
9 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 5, 2024
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
186 Suominen Annual Report 2023
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We have performed a reasonable assurance
engagement on the iXBRL tagging of the consolidated
financial statements included in the digital files
743700Z1BNFYR9PRDF52-2023-12-31-FI.zip of Suominen
Corporation (business identity code: 1680141-9) for the
financial year January 1 – December 31, 2023, to ensure
that the financial statements are marked/tagged with
iXBRL 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 ESESF RTS. This
responsibility includes:
- Preparation of ESEF-financial statements in accordance
with Article 3 of ESEF RTS
- Tagging the primary financial statements, notes to the
financial statements and the entity identifier information
in 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 management
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 firm applies International Standard on Quality
Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management
including policies or 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:
- whether the tagging of the primary financial statements
in the consolidated financial statements complies in all
material respects with Article 4 of the ESEF RTS
- whether the tagging of the notes to the financial
statements and the entity identifier information in
the consolidated financial statements complies in all
material respects with Article 4 of the ESEF RTS
Independent auditor’s
report on Suominen Oyj’s
ESEF-consolidated
financial statements (Translation of the Finnish original)
To the Board of Directors of Suominen Corporation
187Suominen Annual Report 2023
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- whether 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
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
sufficient and appropriate to provide a basis for our
statement.
Opinion
In our opinion the tagging of the primary financial
statements, notes to the financial statements and the
entity identifier information in the consolidated financial
statements included in the ESEF financial statements
743700Z1BNFYR9PRDF52-2023-12-31-FI.zip of Suominen
Corporation for the year ended January 1 – December
31, 2023 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
January 1 – December 31, 2023, is included in our
Independent Auditor’s Report dated February 5, 2024. In
this report, we do not express an audit opinion any other
assurance on the consolidated financial statements.
Helsinki March 11, 2024
Ernst & Young Oy
Authorized Public Accountant Firm
Toni Halonen
Authorized Public Accountant
188 Suominen Annual Report 2023
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Key ratios
2023 2022 2021
Net sales, EUR million 450.9 493.3 443.2
Comparable operating profit, EUR million -2.8 -4.2 26.9
% of net sales -0.6 -0.8 6.1
Operating profit, EUR million, -7.5 -9.0 26.9
% of net sales -1.7 -1.8 6.1
Comparable EBITDA, EUR million 15.8 15.3 47.0
% of net sales 3.5 3.1 10.6
EBITDA, EUR million 11.2 14.3 47.0
% of net sales 2.5 2.9 10.6
Profit before income taxes, EUR million -13.5 -11.9 26.6
% of net sales -3.0 -2.4 6.0
Profit for the period, EUR million -12.8 -13.9 20.7
% of net sales -2.8 -2.8 4.7
Cash flow from operations, EUR million 30.7 14.0 11.1
Total assets, EUR million 316.4 343.4 386.7
Return on equity (ROE), % -9.6 -8.8 13.3
Return on invested capital (ROI), % -4.1 -4.2 13.9
Equity ratio, % 39.5 42.5 42.2
Interest-bearing net debt, EUR million 44.1 54.6 49.6
Capital employed, EUR million 168.4 199.8 211.0
Gearing, % 35.3 37.4 30.4
Gross capital expenditure, EUR million 11.2 9.7 17.8
% of net sales 2.5 2.0 4.0
Depreciation, amortization and impairment losses, EUR million -18.7 -23.2 -20.1
Expenditure on research and development, EUR million 3.9 3.5 2.7
as % of net sales 0.9 0.7 0.6
Average number of personnel (FTE - full time equivalent) 682 707 709
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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
(comparable EBIT)
=
Profit before income taxes + net financial expenses,
adjusted with items affecting comparability
In order to improve the comparability of result between reporting periods, Suominen presents comparable operating
profit as an alternative performance measure. Operating profit is adjusted with material items that are considered to
affect comparability between reporting periods. These items include, among others, impairment losses or reversals of
impairment losses, gains or losses from the sales of property, plant and equipment or intangible assets or other assets
and restructuring costs. In 2023 and 2022, items affecting comparability of result were expenses and impairment losses
arising from the closure of the production lines in Italy.
EUR thousand 2023 2022
Operating profit -7,517 -8,958
+ Dismissal costs affecting comparability 2,207 −
+ Restoration costs affecting comparability 2,344 −
+ Other costs affecting comparability 116 −
+ Impairment losses of property, plant and equipment and intangible
assets, affecting comparability of result 8 2,288
+ Impairment losses of right-of-use assets, affecting comparability of result 108 1,536
+ Impairment losses of inventories, affecting comparability of result -16 971
Comparable operating profit -2,750 -4,163
Reference
Consolidated statement of profit or loss
190 Suominen Annual Report 2023
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EUR thousand 2023 2022
Operating profit -7,517 -8,958
+ Depreciation, amortization and impairment losses 18,680 23,245
EBITDA 11,163 14,287
EBITDA 11,163 14,287
+ Dismissal costs affecting comparability 2,207 −
+ Restoration costs affecting comparability 2,344 −
+ Other costs affecting comparability 116 −
+ Impairment losses of inventories, affecting comparability of result -16 971
Comparable EBITDA 15,813 15,257
Reference
Consolidated statement of profit or loss
Note 25
EBITDA and comparable EBITDA
EBITDA is an important measure that focuses on the operating performance excluding the effect of depreciation
and amortization, financial items and income taxes, in other words what is the margin on net sales after deducting
operating expenses.
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 affect 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. In 2023 and 2022, the items affecting
comparability of EBITDA were the expenses and impairment losses of inventory arising from the closure of the
production lines in Italy.
EBITDA = EBIT + depreciation, amortization and impairment losses
Comparable EBITDA =
EBIT + depreciation, amortization and impairment losses,
adjusted with items affecting comparability
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.
EUR thousand 2023 2022
Increases in intangible assets 169 438
Increases in property, plant and equipment 11,054 9,275
Gross capital expenditure 11,223 9,713
Reference
Note 6
Note 7
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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 2023 2022
Interest-bearing liabilities 102,278 103,365
Tender and issuance costs of the debentures 551 705
Cash and cash equivalents -58,755 -49,508
Interest-bearing net debt 44,074 54,562
Interest-bearing liabilities 102,278 103,365
Tender and issuance costs of the debentures 551 705
Nominal value of interest-bearing liabilities 102,828 104,069
Reference
Note 14
Consolidated statement of financial position
Note 14
Note 14
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 2023 2022
Profit for the reporting period (rolling 12 months) -12,786 -13,863
Total equity attributable to owners of the parent December 31, 2022 / 2021 145,916 163,199
Total equity attributable to owners of the parent March 31, 2023 / 2022 140,131 153,504
Total equity attributable to owners of the parent June 30, 2023 / 2022 127,236 158,098
Total equity attributable to owners of the parent September 30, 2023 / 2022 130,283 165,188
Total equity attributable to owners of the parent December 31, 2023 / 2022 124,912 145,916
Average 133,695 157,181
Return on equity (ROE), % -9.6 -8.8
Reference
Consolidated statement of profit or loss
Consolidated statement of financial position
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Invested capital
Invested capital =
Total equity + interest-bearing liabilities
- cash and cash equivalents
EUR thousand 2023 2022
Total equity attributable to owners of the parent 124,912 145,916
Interest-bearing liabilities 102,278 103,365
Cash and cash equivalents -58,755 -49,508
Invested capital 168,435 199,773
Reference
Consolidated statement of financial position
Note 14
Consolidated statement of financial position
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 (rolling 12 months) x 100
Invested capital, quarterly average
EUR thousand 2023 2022
Operating profit (rolling 12 months) -7,517 -8,958
Invested capital December 31, 2022 / 2021 199,773 210,975
Invested capital March 31, 2023 / 2022 194,290 205,806
Invested capital June 30, 2023 / 2022 182,005 210,561
Invested capital September 30, 2023 / 2022 181,914 230,264
Invested capital December 31, 2023 / 2022 168,435 199,773
Average 185,283 211,476
Return on invested capital (ROI), % -4.1 -4.2
Reference
Consolidated statement of profit or loss
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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 buffer against potential losses, and equity ratio represents the level of this
buffer.
Equity ratio, % =
Total equity attributable to owners of the parent x 100
Total assets - advances received
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 2023 2022
Total equity attributable to owners of the parent 124,912 145,916
Total assets 316,434 343,445
Advances received -104 -74
316,330 343,371
Equity ratio, % 39.5 42.5
EUR thousand 2023 2022
Interest-bearing net debt 44,074 54,562
Total equity attributable to owners of the parent 124,912 145,916
Gearing, % 35.3 37.4
Reference
Consolidated statement of financial position
Consolidated statement of financial position
Note 16
Reference
Consolidated statement of financial position
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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 2024 as follows:
February 6, 2024 Financial Statements Release
for 2023
May 7, 2024 Interim Report for
January–March 2024
August 9, 2024 Half-Year Financial Report for
January–June 2024
October 29, 2024 Interim Report for
January–September 2024
The Annual General Meeting
Notice is given to the shareholders of Suominen
Corporation to the Annual General Meeting to be held on
April 4, 2024, at 10:00 a.m. at Messukeskus (Holiday Inn
Helsinki – Expo entrance) at the address Rautatieläisenkatu
3, 00520, Helsinki, Finland. The reception of persons
who have registered for the meeting will commence
at 9:00 a.m. After the Meeting, coffee is served, and
the shareholders have the opportunity to meet the
company’s management. Notice to the Annual General
Meeting has been announced as a stock exchange
release on February 6, 2024. All materials to the Annual
General meeting are available on the company’s website
www.suominen.fi/agm.
Each shareholder who is registered on the record
date of the General Meeting on March 21, 2024 in the
shareholders’ register of the company held by Euroclear
Finland Ltd has the right to participate in the Annual
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 General Meeting starts on February
13, 2024 at 4:00 p.m. (EET). A shareholder who is
registered in the company’s shareholders’ register and
wishes to participate in the General Meeting, shall register
for the meeting no later than March 27, 2024 by 4:00 p.m.
(EEST) by which time the registration must be received
by the company. The shareholder may register for the
General Meeting:
a) On the company’s website www.suominen.fi/agm
Electronic registration requires for natural persons the
shareholder’s or his/her proxy representative’s, and
for legal persons, its representative’s or proxy holder’s
strong electronic identification (online banking codes or
the Mobile ID).
b) A shareholder registering for the General Meeting
by regular mail or email must deliver a registration
and advance voting form which is available on the
company’s website www.suominen.fi/agm, or
corresponding information by regular mail to Innovatics
Oy to the address Innovatics Oy, General Meeting
/ Suominen Corporation, Ratamestarinkatu 13 A,
00520 Helsinki, Finland or by email to the address
If a shareholder registers for the General Meeting
by regular mail or email to Innovatics Oy, the delivery
of the registration and advance voting form or the
corresponding information before the end of the
registration period shall constitute a registration for the
General Meeting provided that the information required
for registration set out in the form is provided.
In connection with the registration, the shareholder
shall provide the requested information, such as his/her
name, date of birth/business identity code and contact
information as well as the name of a possible assistant
or proxy representative and the date of birth and contact
information of the proxy representative. The personal data
provided will only be used in connection with the General
Meeting and with the processing of any related necessary
195Suominen Annual Report 2023
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registrations. The shareholder, his/her representative or
proxy holder must be able to prove his/her identity and/or
right of representation at the meeting place if necessary.
Instructions regarding voting in advance are
available to all shareholders on the company’s website
www.suominen.fi/agm.
Proposal on distribution of funds
The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 0.10 per share shall be
paid based on the adopted balance sheet regarding the
financial year of 2023 and that the profit shall be recorded
in retained earnings.
Investor relations
Emilia Peltola, Vice President, Communications & IR
tel. +358 10 214 3082
Request for management appointments:
Kati Junnila, Executive Assistant
tel. +358 40 531 3013
Silent period
Suominen observes a 30-day silent period prior to
the publishing of its financial result. During this time
Suominen does not comment on the company’s financial
performance, markets, its future outlook or business
prospects. During this time Suominen’s management and
other employees do not meet with representatives of
capital markets or financial media.
The record date for the payment of the dividend is
April 8, 2024 and the dividend shall be paid on April 15,
2024.
196 Suominen Annual Report 2023
This is Suominen Sustainability Corporate Governance Financial Information
