ANNUAL
REPORT
2025
This is Suominen ............................. 2
Suominen today
.............................. 2
President & CEO’s review
................. 3
Key figures
...................................... 5
How Suominen creates value
........... 6
Operating environment
....................8
Strategy
........................................ 10
Sustainability at Suominen
..............12
Corporate Governance
................. 15
Corporate Governance
Statement
......................................15
Remuneration Report
.................... 25
Tax management, tax strategy
and footprint
................................. 35
Board of Directors
......................... 37
Suominen Leadership Team
........... 38
Report by the Board of Directors and
Financial Information
.................... 39
Report by the Board of Directors
.... 41
Consolidated financial
statements (IFRS)
......................... 109
Key ratios per share
......................163
Parent company financial
statement (FAS)
............................166
Proposal by the Board of Directors
for distribution of funds
................ 177
Auditor’s report
............................178
Assurance report on
the sustainability statement
...........183
Independent auditor’s report on
ESEF consolidated financial
statements
.................................. 186
Key ratios
.................................... 188
Information for shareholders
.........194
Contents
1Suominen Annual Report 2025
FINLAND 146
Nakkila
Espoo, Head office
ITALY 106
Cressa
SPAIN 80
Alicante
BRAZIL 63
Paulínia
USA 292
Green Bay
Windsor Locks
Bethune
Suominen today
Suominen manufactures nonwovens
as roll goods for wipes and other
applications. The end products made of
Suominen’s nonwovens are present in
people’s daily lives worldwide. Suominen’s
net sales in 2025 were EUR 412.4 million,
and we have almost 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 EMEA. In 2025, net sales of
the Americas business area amounted to
EUR 252.6 million and the EMEA business
area to EUR 159.9 million.
Suominen has two business areas,
the Americas and EMEA.
Employees
687
1_columns
EMEA 39%
39
Americas 61%
61
Net sales by business area
EMEA 39%
Americas 61%
412.4
EUR million
1
2_columns
Net sales
2023 450.9
2024 462.3
2025
Net sales, EUR million
0
100
200
300
400
500
2023 2024 2025
EUR
million
450.9
462.3
412.4
1
2Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
At Suominen, we are at a turning point. In 2025, Suominen’s financial
results and delivery reliability did not meet our expectations. While we
faced challenges in our operational reliability and overall performance,
the year was also marked by forward-looking investments.
President & CEO’s review
We are undertaking
an ambitious
transformation to
unlock the company’s
full potential.
I
n 2025, the nonwovens market continued its
growth trajectory, with the wipes segment
benefiting from the rapid expansion of the moist
toilet tissue category in the United States. Market
dynamics were affected by excess capacity, and
changes in global trade flows linked to evolving trade
policies. Imports from low-cost producers intensified,
creating additional price and supply disruption.
Our net sales reached EUR 412.4 million
(EUR 462.3 million in 2024), reflecting lower volumes
and negative currency translation. Two significant
incidents at our US facilities constrained our supply
capabilities, negatively impacting both sales and
profitability in the second half of the year. These
supply interruptions prompted some US customers
to temporarily seek alternative sources, further
increasing import pressures. Our full-year comparable
EBITDA was EUR 12.6 million (EUR 17.0 million), with
the primary driver of the decline being reduced sales
volumes, partially offset by our cost-saving initiatives.
Throughout 2025, we executed our strategic
initiatives as planned. Our investment in a new
production line in Alicante, Spain, announced in 2024
to enhance our sustainable product capabilities,
progressed towards commercial production
commencing at the beginning of the second quarter
of 2026. Overall, new products accounted for 27% of
net sales.
3
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Suominen Annual Report 2025
To improve our profitability, we launched a
cost-saving program at the end of the second quarter,
targeting approximately EUR 10 million in benefits
over 24 months. Implementation advanced steadily,
delivering results in line with our original plan. Despite
these initial productivity gains, Suominen’s financial
results did not meet expectations. Accordingly, we
conducted a comprehensive analysis to identify
opportunities for significantly changing the
performance trajectory.
We are at a turning point. To restore performance
and build a foundation for future success, we have
sharpened our strategic focus to what matters most
right now.
Only by improving the reliability and efficiency of
our production and supply, and by strengthening
our commercial capabilities, can we fully meet the
expectations of our customers and shareholders. This
is the first, and most urgent, phase of our journey. We
will upgrade our manufacturing capabilities, embed
continuous improvement across all processes, and
exemplify a culture of accountability.
This is why, in January 2026, we announced the
undertaking of an ambitious transformation to unlock
the company’s full potential. The first phase focuses
on resetting profitability through a comprehensive
three-year Full Potential Program that captures
improvement opportunities across the organization.
By building a culture of accountability and
collaboration, we empower everyone at Suominen
to contribute to our shared ambition: to become an
industry leader, trusted by customers and partners, and
united as One Suominen.
Our cultural ambition is bold: Suominen aims to be
a zero-accident workplace, a quality and sustainability
champion, innovative and profitable, trusted by
customers and shareholders.
I want to express my sincere gratitude to everyone
who makes Suominen. To our employees, thank you
for your dedication, resilience, and commitment. To
our customers and partners, thank you for your trust
and collaboration. To our shareholders, thank you for
your continued confidence and support as we invest
for long-term, sustainable growth.
Together, we will turn this moment into momentum
and build the Suominen we know we can be.
Charles Héaulmé
President & CEO
Comparable EBITDA,
EUR million
12.6
Share of new products of
net sales
27%
Net sales, EUR million
412.4
Once we have successfully initiated this short-term
plan, we will establish longer-term strategic and
financial objectives. These new targets will reflect our
renewed ambition and commitment to sustainable
profitable growth, innovation, and industry leadership.
Achieving these goals requires more than just new
processes or tools. It calls for the right operating
model, mirroring the needs of our customers and
factories, and enabling expertise and effectiveness at
every level.
Most importantly, lasting change depends on our
culture. To set ourselves up for success in driving
the Full Potential Program, we are deploying a
company-wide culture transformation, anchored
in our renewed values. Together, we are building
a culture that powers our transformation into One
Suominen, committed to safety, bold in innovation,
accountable in action, and united in success.
To restore performance and
build a foundation for future
success, we have sharpened our
strategic focus on what matters
most right now.
4Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Key figures
FINANCIAL 2025 2024
Net sales, EUR million 412.4 462.3
Comparable EBITDA, EUR million 12.6 17.0
EBITDA, EUR million 11.3 17.2
Comparable operating profit / loss, EUR million -4.2 -1.4
Profit / loss for the period, EUR million -12.1 -5.3
Earnings per share, EUR -0.21 -0.09
Dividend, EUR 0,00* 0.00
Cash flow from operations, EUR million 12.2 3.9
Cash flow from operations per share, EUR 0.21 0.07
Capital expenditure, EUR million 26.3 16.0
Equity ratio, % 35.3 37.9
Equity per share, EUR 1.66 2.04
Gearing, % 80.7 51.7
Return on invested capital (ROI), % -3.3 -0.7
EMPLOYEES 2025 2024
Number of employees 687 736
SUSTAINABILITY 2025 2024
Number of lost time accidents 2 4
Nonwoven manufacturing waste to landfill, tons 6604 N/A
Used plant-based raw materials, %** 62 62
New sustainable product R&D initiatives, %*** 50 N/A
* Proposal by the Board of Directors to the Annual General Meeting
** Out of total raw material use
*** Out of total number of new R&D initiatives
2_columns
Net sales
2023 450.9
2024 462.3
2025
Net sales, EUR million
0
100
200
300
400
500
2023 2024 2025
EUR
million
450.9
462.3
412.4
1
4_columns
Gearing, %
2023 35.3
2024 51.7
2025 80.7
Gearing, %
0
20
40
60
80
100
2023 2024 2025
35.3
80.7
51.7
2
5_columns
Comparable operating pro
t,
EUR million
2023 -2.8
2024 -1.4
2025 -4.2
Comparable operating profit / loss,
EUR million
-5
-4
-3
-2
-1
0
1
2023 2024 2025
-2.8
-4.2
-1.4
3
-0.
40
-0
.20
0.00
0
.20
-20
-10
0
10
2023 2024 2025
-12.8
-0.22
-5.3
-0.09
2025
Profit / loss for the period, EUR million and
earnings per share, EUR
EUR
Earnings per share, EUR
EUR
million
2025
-12.8
-12.1
-5.3
0.00
0
.25
0
.50
0.75
1.
00
0
10
20
30
40
2023
2024
2025
7_columns and line
Cash ow
from
operations
Cash
ow
from
operations
per share,
EUR
2023 30.7 0.53
2024 3.9 0.07
2025
Cash flow from operations, EUR million and
cash flow from operations per share, EUR
EUR
Cash flow from operations per share, EUR
EUR
million
7_2024 column
Cash ow
from
operations
2025
30.7
X.X3.9
12.2
5
8_columns
Dividend per
share, EUR
2023 0.10
2024 0.00
2025 0.00
Dividend per share, EUR
0.00
0.02
0.04
0.06
0.08
0.10
2023 2024 2025
* Proposal by the Board of Directors to
the Annual General Meeting
*
0.10
0.000.00
6
5Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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.
6Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Value creation model
FINANCIAL RESOURCES
- Total equity: EUR 96.1 million
- Total liabilities: EUR 176.3 million
NATURAL RESOURCES
- Water consumption 788,588 m
3
- Raw materials
- Plant-based 62%
- Fossil-based 37%
- Reused/recycled 1%
- Total energy consumption 492,658 MWh
- Renewable sources 19%
- Fossil sources 74%
- Nuclear sources 7%
INTELLECTUAL CAPABILITIES
- Suominen brand and our way of operating
- R&D expenses EUR 2.8 million
- 13 R&D professionals
- 33 granted and 14 pending patents
- 60 trademarks and design patents
- Piloting facilities
- Technical know-how
- IT systems
SOCIAL RELATIONSHIPS
- Customer and supplier relations
- R&D cooperation with stakeholders
- Manufacturing partners
- Professional networks
- Start-up network
- Memberships in associations
- Local communities
MANUFACTURING RESOURCES
- Geographically and technically broad
manufacturing base
687 employees
7 production plants
on three continents
Net sales
EUR 412.4 million
SUOMINEN’S STRATEGY:
We focus on three dimensions that will enable us
to build One Suominen to win: the right culture
(behaviors), the right focus on priorities (strategy)
and the right operating model (organization). The
first phase of our turnaround focuses on resetting
profitability through a comprehensive three-year
program that captures improvement opportunities
across the organization. While restoring short-term
profitability is the immediate priority, Suominen will
also develop its long-term strategy and financial
targets in parallel.
Inputs Suominen
CUSTOMERS
- Innovations and new products
- Improved product performance
- Suominen brand value
- Customer satisfaction
EMPLOYEES
- Wages and salaries EUR 45.5 million
- Professional development
- Fair employment practices and equal opportunities
- Safe workplace
PARTNERS
- Spend on materials and services EUR 301.5 million
- Business growth
- Ethical business
- Interest to creditors
SHAREHOLDERS
- Board of Directors proposes that no dividend
shall be distributed for the financial year 2025
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 +1.3 million
- Employment
PRODUCTS AND SOLUTIONS
- Nonwovens for wipes and other applications
WASTE
- Waste to landfill 9,794 tons
- Nonwoven manufacturing waste to landfill
6,604 tons (43%)
EMISSIONS
- Scope 1 and 2 total greenhouse gas emissions
(market-based) 84,568 tCO₂eq
- Scope 3 total greenhouse gas emissions
534,980 tCO₂eq
WATER
- Treated water from operations
Outputs
Impacts
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.
7Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Operating
environment
Suominen is a global market leader
in nonwovens for wipes and ranks
among the largest producers of
spunlace nonwovens worldwide.
Suominen’s main market areas are
Europe and North America. Suominen
also maintains a strong presence in
the South American market.
Market characteristics
Europe
In Europe, all consumer wipe categories are highly
fragmented and competitive. Private labels are gaining share
in the European market.
The 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 moist toilet tissue
demonstrating strong growth, disinfecting wipes continuing
growth, and baby wipes marginal growth. Growth is
particularly strong in private labels and new challenger
brands. Consumer products have a higher share than
industrial products in the wipes market.
South America
The South American market is dominated by the baby
wipes category and branded players, but other segments
are growing. Rising consumer awareness, high focus on
sustainability, and reducing single-use plastic products are
emerging trends.
Net sales of the EMEA business area were EUR 159.9 million,
corresponding to 39% of Suominen’s net sales in 2025.
Suominen has one site each in Italy, Spain and Finland.
Suominen’s headquarters are in Finland. In 2025, Suominen
had 332 employees in Europe.
Net sales of the Americas business area were EUR 252.6
million, corresponding to 61% of Suominen’s net sales in
2025. Suominen has three sites in the USA and one in Brazil.
In 2025, Suominen had 355 employees in the Americas.
8Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
I
n 2025, Suominen operated in an environment
characterized by continued macroeconomic
uncertainty and geopolitical tensions. The general
economic situation, inflationary pressures, and shifts
in global trade policies influenced market sentiment
and purchasing behavior across regions. Ongoing
geopolitical tensions, including the war in Ukraine and
instabilities in the Middle East, continued to create
uncertainty globally.
In addition, developments related to US trade tariffs
contributed to volatility in global supply chains and
temporarily disrupted demand patterns, particularly
during the first half of the year.
Despite these uncertainties, the nonwovens and
wipes markets continued to demonstrate resilience
and long-term growth potential. Demand for daily
consumer goods is not highly cyclical in nature, and
the wipes market has historically demonstrated stability
even in challenging economic conditions.
Trade policy-driven market volatility
Market dynamics during the year were influenced
by excess capacity in certain nonwoven categories,
particularly spunlace, combined with changes in global
trade flows due to trade policies.
Turkish and Chinese producers increased their
focus on European markets during periods of tariff
instability, intensifying competition and contributing to
price pressure, while subsequent clarifications shifted
pressure back toward North America. At the same
time, protectionist measures, including anti-dumping
investigations in Brazil, highlighted the growing role of
trade regulation in shaping market dynamics.
Oversupply and intensified competition placed
pressure on pricing, especially in Europe, with raw
material prices declining to record low levels. At
the same time, customers increasingly focused on
optimizing inventories and diversifying sourcing to
mitigate supply chain risks.
While short-term fluctuations in demand occurred
due to supply chain disruptions and inventory
adjustments, the underlying long-term demand drivers
for wipes and hygiene products remain intact.
Resilient demand despite consumer
uncertainty
Consumer confidence remained subdued in many
markets due to the prolonged cost-of-living crisis and
tighter household budgets. As a result, consumers
continued to prioritize value, leading to further
growth in private label products across several
wipes categories.
The nonwovens market continued to grow in 2025,
although growth rates varied between markets and
product categories. North America remained on
a solid growth track, while growth in Europe was
more moderate. South America continued to show
strong growth, supported by demographic trends and
increasing penetration of wipes and hygiene products.
The wipes category as a whole continues to be
a structurally growing product segment. Growth
varies by application, with adult and general-purpose
products showing steady demand, supported by
hygiene awareness, convenience and changing
lifestyles.
Moist toilet tissue continues to be one of the fastest-
growing product categories globally. The category is
well established in North America, where consumer
adoption has been strong for several years, and growth
remained healthy in 2025. In Europe, moist toilet tissue
is increasingly gaining traction, following a similar
adoption path.
Continued transition toward
plastic-free solutions
The interest in and transition toward plastic-free
solutions continued to be strong in 2025. The trend is
driven by a combination of regulatory developments,
evolving consumer expectations, and the sustainability
ambitions of brand owners and private label
manufacturers.
Regulation related to single-use plastics, chemicals,
product claims and product labeling is tightening
across several markets, particularly in Europe.
Differences in regulatory approaches between regions
add complexity for the industry, requiring close
monitoring and active engagement with regulators and
industry bodies.
At the same time, consumers are increasingly
aware of the potential impacts of everyday products
and expect more sustainable choices without
compromising performance. This has further
accelerated the shift toward plastic-free and fiber-
based nonwoven materials in wipes and hygiene
applications.
In addition to regulatory and consumer-driven
factors, large end-product manufacturers play
a central role in driving the transition. Many of
Suominen’s customers have set ambitious climate
and sustainability targets, including commitments
to reduce greenhouse gas emissions and the use of
fossil-based materials across their value chains. For
these customers, substituting conventional materials
with plant-based alternatives with a lower carbon
footprint is a key enabler in achieving their long-term
climate objectives.
As a result, material choices, product design and
supply chain transparency have become increasingly
important in customer decision-making. The
continued transition toward plastic-free solutions is
expected to remain a key structural driver shaping the
nonwovens and wipes markets in the coming years.
9Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
B
uilding on these insights, we focus on three
dimensions that will enable us to build One
Suominen to win: the right culture (behaviors),
the right focus on priorities (strategy) and the right
operating model (organization). The first phase of
our turnaround focuses on resetting profitability
through a comprehensive three-year program that
captures improvement opportunities across the
organization. While restoring short-term profitability
is the immediate priority, Suominen will also develop
its long-term strategy and financial targets in parallel.
Strategy
Suominen is undertaking an ambitious transformation to unlock
the company’s full potential. In the second half of 2025, Suominen
conducted a comprehensive analysis across its operations to
identify the greatest opportunities for restoring performance and
strengthening the foundation for long-term success.
Our transformation focuses first on resetting profitability,
after which we will scale the business
Suominen
TODAY
3%
Suominen
Phase I
by 2028 10%
Suominen
Phase II
by 2030
10%+
How success will look like for Suominen by 2030…
- Zero-accident
- Quality leader and reliable for customers
- Profitable and growing
- Investing and innovating
- Sustainability leader
- Offering return to shareholders
Suominen
profitability
(EBITDA %)
Strategic
intent
Profitability
Suominen Culture of accountability
Acknowledge Reset profitability Scale profitable growth
Profitable growth
Time
Culture and values at the heart of
the transformation
At Suominen, our journey to industry leadership is
powered by our people and our commitment to
a renewed culture. Our One Suominen culture of
accountability is anchored around caring for each
other, our customers, and the environment; bold
thinking and courageous action; and working as one
team to consistently deliver results.
Our renewed culture vision and values are not
just top-down declarations, but are shaped by the
voices of people across Suominen. Through surveys,
workshops, and panel discussions, employees have
shared their experiences and ideas for a better
workplace. This collective input has been instrumental
10Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
in defining the cultural shift we need and ensuring that
our values truly reflect who we are and what we strive
to become together as One Suominen.
Resetting profitability
Suominen is embarking on an ambitious turnaround.
The first phase focuses on resetting profitability
through a comprehensive three-year Full Potential
Program that captures improvement opportunities
across all processes. The program, launched in
early 2026, aims to unlock the full potential of our
operations and to enhance competitiveness by
systematically improving production efficiency,
optimizing raw-material usage as well as strengthening
commercial excellence and procurement.
The Full Potential Program targets delivering a 10%
EBITDA and a 2x–3x leverage ratio (net debt/EBITDA)
by 2028.
The transformation program will require focused
execution and investing in capabilities. It will involve an
estimated investment of approximately EUR 30 million
over the three years, of which transformation costs are
estimated at EUR 10 million and capital expenditures
to upgrade manufacturing capabilities at around
EUR 20 million. The Full Potential Program does not
consider investment in capacity expansion.
Adapting the operating model to support
Suominen’s turnaround effectively
In early 2026, Suominen introduced a new, functional
operating model designed to reinforce strategic focus,
sharpen accountability, and create a more seamless
connection between customer needs, technology
development, and operational performance.
The new functional operating model brings
commercial activities together to strengthen growth
execution and business development. By aligning R&D
and customer management more tightly, Suominen
ensures that innovation is directly guided by customer
expectations and market developments. While the
sales organization will build strong global expertise, we
continue to maintain a solid local presence across key
markets close to the customers.
At the same time, the role of the Operations function
has been expanded to encompass all factories,
safety, manufacturing engineering, procurement,
and supply chain. This consolidation is designed to
reinforce operational reliability and output by driving
systematic deployment of best practices, continuous
improvement, and harmonized processes across the
network.
Together, these changes increase profit and loss
accountability across the organization, enhance
execution discipline, and improve decision-making
both in operations and commercial functions.
Strategic highlights
of the year 2025
.................................................................................
Our investment in a new
production line in Alicante,
Spain, announced in 2024 to
enhance our sustainable product
capabilities, progressed towards
commercial production.
.................................................................................
New products accounted for
27% of net sales.
.................................................................................
During the second quarter, we
launched a cost-saving program,
targeting approximately
EUR 10 million in benefits over
24 months. Implementation
advanced steadily, delivering
results in line with our
original plan.
Building the right
Suominen to win requires
three dimensions
The right culture: Suominen
culture of accountability
VALUES
- Care
- Dare
- Win
- Operations’ full potential
- Cost competitiveness
- Profitable growth
The right focus
on priorities
- Driving expertise and
effectiveness
- Driving Full Potential with
operations and customers
The right
operating model
11Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Sustainability as
a strategic foundation
Sustainability is a core element of Suominen’s business
model, guiding how we design products, operate our
manufacturing and create long-term value. Our vision is to be
the frontrunner in nonwovens innovation and sustainability.
S
ustainability at Suominen begins with the
recognition that our business model places us
at the heart of several global environmental and
social challenges. As a developer and manufacturer of
nonwovens used largely in single-use applications, we
operate in a value chain where raw material choices,
manufacturing efficiency and product end-of-life all
shape our impact.
Understanding our material impacts
Our double materiality assessment highlights the areas
where our operations connect most significantly to
the environment and to people. We have identified
material actual or potential impacts related to
greenhouse gas emissions, water consumption,
resource intensity, the single-use nature of many
end-products, contributions to drivers of biodiversity
loss, and potential microplastic pollution from the
improper disposal of plastic-based products. These
insights have sharpened our understanding of
sustainable business development: they show clearly
where we must improve, innovate and transform.
At the same time, we recognize the positive
impacts Suominen can deliver. Much of our potential
to influence the environment and society lies in
the sustainability of our product portfolio and the
robustness of our policies, processes and long-term
commitments. This is why our refreshed Sustainability
Agenda 2025–2030 focuses on steering our
innovation, our operations and our people practices
toward a more resilient and lower-impact future.
Shifting to plant-based raw materials
One of the clearest examples of our sustainability
efforts is our commitment to increasing the
share of plant-based raw materials. Because raw
materials account for the majority of our products’
environmental footprint, shifting from fossil-based to
renewable, bio-based alternatives is one of the most
effective ways to reduce impacts across the value
chain – from emissions to microplastic generation.
It is also where our ability to create positive change
is strongest: by designing products with lower
environmental impact, we support customers and
end-users in transitioning to more sustainable
everyday solutions.
In 2025, the share of raw materials from plant-
based sources was 62%, 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.
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
12Suominen Annual Report 2025
Driving waste reduction and circularity
Reducing waste across the value chain is another
central part of improving our resource efficiency
and minimizing negative environmental impacts.
Waste is not only a cost; it is a symptom of resource
inefficiency and creates unnecessary environmental
impact. By minimizing material losses, improving
recycling and advancing circular solutions, we directly
address one of our key negative impact areas while
strengthening operational performance. Waste
reduction is therefore both a responsibility and a
strategic opportunity.
Our target is zero nonwoven manufacturing waste
to landfill by 2030. Suominen aims to ensure that all
nonwoven waste generated during the manufacturing
process is completely diverted from landfills through
methods and levels of the waste hierarchy laid down in
the EU Waste Framework Directive, such as improving
production efficiency, recycling, reusing, or utilizing
waste in energy production.
Climate action across the value chain
Our climate work follows the same logic. With
emissions among our most material impacts, we
are acting across Scopes 1, 2 and 3 to reduce our
corporate carbon footprint – improving energy
efficiency, increasing the use of renewable energy, and
developing products with lower-carbon profiles.
Our climate change mitigation target is set to reduce
our Scope 1, 2 and 3 greenhouse gas emissions in
line with the Paris Agreement, targeting to limit global
warming to 1.5°C above pre-industrial levels. The
reduction target will be a 42% reduction in absolute
values across Scopes 1–3. The target period is
2025–2030, with 2024 as the base year.
In 2025, Suominen began developing its Climate
Change Roadmap and Transition Plan, identifying key
hotspots across its operations. For Scope 1 and 2, the
main focus will be on enhancing energy efficiency
and transitioning to fossil-free electricity. For Scope 3,
the main emission source is purchased raw materials.
Therefore, Suominen will focus on improving raw
material efficiency, evaluating its product portfolio
and potential investments, and strengthening supplier
engagement activities. Suominen’s Climate Transition
Plan will be integrated with the company strategy.
A more detailed Climate Transition Plan as well as
absolute GHG reduction targets, will be disclosed once
the new strategy has been adopted by the company.
Suominen’s sustainability
report for 2025
Suominen has been reporting on sustainability
for over ten years. The 2025 report is made
in accordance with the EU’s Corporate
Sustainability Reporting Directive (CSRD) and
its European Sustainability Reporting Standards
(ESRS). Please find Suominen’s sustainability
statement as part of the Report by the Board
of Directors, from page 51 onwards.
Suominen took part in the EcoVadis assessment in 2025 for the fourth time
and received a Gold Medal for the second consecutive year. The result
places Suominen in the top 2% of companies in the manufacture of other
textiles industry and in the top 2% of all companies across all industries
rated by EcoVadis.
This result is a reflection of the continuous improvement of our
sustainability work and shows that sustainability really is at the core of both
our strategy and all our daily operations.
People and safety as enablers of progress
None of this can be achieved without our people.
A safe and healthy working environment is the
foundation of responsible operations, and we are
committed to fostering a culture where zero accidents
is the expectation and where every employee can
contribute to our sustainability progress.
In 2025, two lost time accidents (LTA) occurred
at Suominen sites (four in 2024), and five out of our
seven sites were able to reach the zero LTA target in
2025. There were zero (zero in 2024) work-related
fatal accidents among either employees or contractors
at our sites. Safety monitoring is part of our daily
activities, and we keep records of all work-related
accidents and near misses and identify their causes.
13Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Sustainable nonwovens
People and safety
Low impact manufacturing
Corporate citizenship
We continue
to strengthen
our safety culture.
We promote human rights,
equal opportunities for all
employees, and building a
high-performance culture.
We innovate new
sustainable nonwovens
and support our customers
in their commitment
to sustainability.
We commit to decreasing the
environmental impacts of our
operations and supply chain.
We promote responsible business
practices and communicate
transparently about our
operations.
Sustainability is the
core principle of all
our functions.
Sustainability Agenda 2025–2030
People and safety
TARGET 2030
0
lost time accidents
(LTA)
80%
Diversity, equity &
inclusion (DEI) index
RESULT 2025
2
lost time accidents
(LTA)
69%
Diversity, equity &
inclusion (DEI) index
Sustainable nonwovens
TARGET 2030
>2/3
of consumed raw
materials are from
plant-based resources
>50%
of our new R&D
initiatives focus
on advancing the development of
sustainable products
RESULT 2025
62%
of consumed raw
materials are from
plant-based resources
50%
of our new R&D
initiatives focus on
advancing the development of
sustainable products
Corporate citizenship
TARGET 2030
100%
qualified raw
material suppliers
assessed against Suominen’s
sustainability criteria
100%
of employees
have completed
Suominen’s sustainability training
program
RESULT 2025
68%
of qualified raw
material suppliers
have a valid EcoVadis scorecard
or are assessed with Suominen
Sustainability Questionnaire
N/A
We will create
a sustainability training program
in 2026
Low impact manufacturing
TARGET 2030
42%
reduction in
Scope 1 and 2, and
42%
reduction in
Scope 3 green-
house gas emissions in line with
the Paris Agreement 1.5°C goal
0
tons of nonwoven
manufacturing waste
to landfill
RESULT 2025
-11%
Scope 1 and 2 total
emissions (market-based)
The Scope 3 target will be specified
and emission reductions will be reported
in 2026
6,604
tons (43%) of
nonwoven
manufacturing waste to landfill
14Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
CORPORATE
GOVERNANCE
Corporate Governance Statement ..............................16
Remuneration Report
............................................... 25
Tax management, tax strategy and footprint
............... 35
Board of Directors
.....................................................37
Suominen Leadership Team
...................................... 38
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
15Suominen Annual Report 2025
S
uominen Corporation (“Suominen” or the
“Company”) complies with the Finnish
Corporate Governance Code 2025 (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 also available on
Suominen’s website at www.suominen.fi.
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.
Corporate Governance Statement of
Suominen Corporation for 2025
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 Suominen Leadership Team. Suominen’s decision-
making bodies and 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 Limited
Liability Companies Act and Suominen’s Articles of
Association. Such matters include:
Auditor
Audit
Committee
Personnel &
Remuneration
Committee
Strategy
Committee
General Meeting of Shareholders
President & CEO
Suominen Leadership Team
Board of Directors
Shareholders’
Nomination
Board
Internal
Audit
16Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
- 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 2025
The Annual General Meeting was held in Helsinki on
April 25, 2025. A total of 31 shareholders representing
52% of the Company’s shares and votes were
represented at 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 submits its proposals on the
number of members, composition and remuneration
of the Board to Suominen’s Board of Directors annually
no later than on February 1, prior to the Annual
General Meeting.
The Nomination Board consists of four members,
three of whom 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.
Nomination Board in 2025
Shareholders’ representatives on the Nomination Board were determined based on share ownership on
September 1, 2025, by the following three largest registered shareholders of the Company:
Shareholder Representative Member since Born Gender Education Main occupation
Ahlstrom Capital B.V. Jyrki Vainionpää 2024, Chair since 2024 1976 Male M.Sc. (Econ.) President & CEO,
A. Ahlström Oy
Etola Group Oy Mikael Etola 2021 1977 Male M.Sc. (Econ.) CEO, Etola Group Oy
Oy Etra Invest Ab Ville Vuori 2025 1973 Male B.Sc. (Eng.), eMBA Board professional
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,
Charles Héaulmé, Chair of Suominen’s Board
of Directors, acted as the fourth member of the
Nomination Board.
In 2025, the Nomination Board convened three
times. The attendance rate at the meetings was 100%.
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.
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
17Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
- to approve the Company’s long-term targets and
monitor their implementation,
- to approve the Company’s annual business plan,
- to approve the Company’s 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 Suominen
Leadership 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 Suominen
Leadership Team,
- to decide on the main principles of Suominen’s
short-term and long-term incentive plans,
- to evaluate and approve the remuneration of
the CEO and other members of the Suominen
Leadership Team and their incentive plans,
- to approve the Remuneration Policy and the
Remuneration Report,
- to approve the Company’s financial reports,
including annual accounts, interim reports, the
Report by the Board of Directors and financial
statement releases,
- to ensure that the Company has adequate planning,
information and control systems and resources for
monitoring results and managing risks,
- to monitor the evaluation and management of
significant risks relating to Suominen’s strategy and
business operations,
- to approve the Company’s Corporate Governance
Statement,
- to convene General Meetings of Shareholders,
- to establish a dividend policy and make a proposal
on the distribution of dividends,
- to make a proposal concerning the election of
the auditor and the sustainability auditor, and the
auditing fees, and
- to make other proposals to General Meetings of
Shareholders.
Board of Directors in 2025
The 2025 Annual General Meeting elected seven
members to the Board.
The term of office of the members of the Board ends
at the close of the Annual General Meeting 2026.
Board member Member since Born Gender Nationality Education Main occupation
Share ownership on
December 31, 2025
Charles Héaulmé 2024,
Chair since 2024
1966 Male French B.Sc. (Business Adm.) President &
CEO, Suominen
Corporation
44,750
Andreas Ahlström 2015, Deputy
Chair since 2020
1976 Male Finnish M.Sc. (Econ. and
Business Adm.)
CEO, Ahlström
Invest B.V.
36,320
Björn Borgman 2020 1975 Male Swedish M.Sc. (Industrial
Engineering)
CEO, HL Display AB
32,312
Gail Ciccione 2025 1960 Female U.S. BBA Business owner,
Trinity Operations
Partner
4,146
Maija Joutsenkoski 2025 1981 Female Finnish M.Sc. (Tech.) Investment Director,
A. Ahlström Oy
4,146
Nina Linander 2020 1959 Female Swedish B.Sc. (Econ.), MBA Board Professional 37,159
Laura Remes 2023 1980 Female Finnish M.Sc. (Tech.) SVP, Business
Transformation,
Metsä Board
10,366
Until April 25, 2025
Aaron Barsness 2022 1973 Male U.S. and
Swedish
BA (Biology and
Environmental
Studies)
CMO, Fazer Group
Independence of the Board members
The Board has evaluated the independence of its
members. All members are independent of the
Company, with the exception of Charles Héaulmé,
who has served as the Company’s President & CEO
since August 11, 2025. All members are independent of
the significant shareholders of the Company, with the
exception of Andreas Ahlström and Maija Joutsenkoski.
The largest shareholder of Suominen Corporation,
Ahlstrom Capital B.V., is part of the A. Ahlström
Group. Andreas Ahlström currently acts as the CEO of
Ahlström Invest B.V., which is an associated company
18Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
of A. Ahlström Group. Maija Joutsenkoski acts as the
Investment Director at A. Ahlström Corporation, which
is the parent company of Ahlstrom Capital B.V.
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 2025, the Board convened 20 times, of which six
times were per capsulam. One of the meetings was
convened without inviting the Chair of the Board,
Charles Héaulmé, due to considerations regarding
his potential appointment as the Company’s CEO.
The attendance rate at the meetings was 100%. The
participation of each individual member is presented in
the following table.
Name Participation
Charles Héaulmé Chair 19/19
Andreas Ahlström Deputy Chair 20/20
Björn Borgman Member 20/20
Gail Ciccione Member 17/17
Maija Joutsenkoski Member 17/17
Nina Linander Member 20/20
Laura Remes Member 20/20
Until April 25, 2025
Aaron Barsness Member 3/3
Board evaluation
The Board conducted an annual self-assessment of its
operations and working methods during the year 2025.
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.
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 support
and challenge the Company’s management.
Furthermore, diversity promotes open discussion and
variety in perspectives, integrity in decision-making,
good corporate governance, and effective supervision
of both the Board and the management, and it also
supports effective succession planning.
The Shareholders’ Nomination Board evaluates the
number of members on the Board, its composition
and the competence requirements of the Board in the
light of the present and future needs of the Company.
When assessing the composition of the Board, the
Nomination Board considers, among other things,
whether the Board is sufficiently diverse in terms of
educational and professional backgrounds, gender,
age and nationality, and whether it possesses an
appropriate mix of relevant knowledge and experience
and different perspectives, as well as relevant industry
knowledge, to address the needs of the company.
The most important nomination criteria for
Board candidates are competency, knowledge and
experience, personal qualities and integrity. The Board
shall have a balanced gender representation in line
with the targets set out in the Finnish Limited Liability
Companies Act for the under-represented gender. In
addition, candidates must also have the possibility to
devote a sufficient amount of time to Board work.
The objectives concerning the diversity of the
Board as set out in the Board diversity principles
have been achieved well. With regard to diversity in
terms of gender, the Board has a balanced gender
representation in line with the targets set out in
the Finnish Limited Liability Companies Act. The
composition of the Board represents a broad range of
relevant knowledge, competencies and experiences to
address the needs of the Company.
Board committees
The Board has two permanent committees: the Audit
Committee and the Personnel and Remuneration
Board Diversity (December 31, 2025)
9_pie
Male 43% 43
Female
57%
57
Gender
Male 43%
Female 57%
7
10_pie
41–50 years 57% 57
51–60 years 14% 14
61–70 years 29% 29
Age
41–50 years 57%
51–60 years 14%
61–70 years 29%
8
11_pie
Less than 1 year 29% 29
1–4 years 29% 29
4–8 years 28% 28
More than 8 years 14% 14
Tenure
Less than 1 year 29%
1–4 years 29%
4–8 years 28%
More than 8 years 14%
9
19Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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 majority of 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 2025
The Audit Committee in 2025 consisted of Nina
Linander (Chair), Andreas Ahlström, Laura Remes and
Maija Joutsenkoski (member from April 25, 2025).
In 2025, the Audit Committee convened six times.
The attendance rate at the meetings was 91.7%. The
participation of each individual member is presented in
the table below.
Name Participation
Nina Linander Chair 6/6
Andreas Ahlström Member 4/6
Laura Remes Member 6/6
Maija Joutsenkoski Member 5/5
Personnel and Remuneration Committee
The Personnel and Remuneration Committee assists
the Board by reviewing remuneration and appointment
matters concerning the Company’s CEO and other
members of the Suominen Leadership Team. 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 majority of
the members of the Personnel and Remuneration
Committee must be independent of the Company.
Personnel and Remuneration Committee in 2025
The Personnel and Remuneration Committee in 2025
consisted of Björn Borgman (Chair, from June 30,
2025 onwards), Gail Ciccione (member from April
25, 2025 onwards) and Andreas Ahlström (member
from June 30, 2025 onwards). Aaron Barsness acted
as a member of the Personnel and Remuneration
Committee until April 25, 2025 and Charles Héaulmé
acted as the Chair of the Personnel and Remuneration
Committee until June 29, 2025.
In 2025, the Personnel and Remuneration
Committee convened five times. The attendance rate
at the meetings was 93.3%. The participation of each
individual member is presented in the table below.
Name Participation
Björn Borgman Chair 5/5
Gail Ciccione Member 4/4
Andreas Ahlström Member 2/3
Until April 25, 2025
Aaron Barsness Member 1/1
Until June 29, 2025
Charles Héaulmé Chair 2/2
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 2025
The Strategy Committee in 2025 consisted of
Laura Remes (Chair), Andreas Ahlström and Maija
Joutsenkoski (member from April 25, 2025 onwards).
Aaron Barsness acted as a member of the Committee
until April 25, 2025.
In 2025, the Strategy Committee convened twice.
The attendance rate at the meetings was 100%. The
participation of each individual member is presented in
the table below.
Name Participation
Laura Remes Chair 2/2
Andreas Ahlström Member 2/2
Maija Joutsenkoski Member 0/0
Until April 25, 2025
Aaron Barsness Member 2/2
20Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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 Limited Liability 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 Limited Liability
Companies Act. Furthermore, the CEO is in charge of
the day-to-day management of the entire Suominen
Group.
Charles Héaulmé serves as Suominen’s President &
CEO. Tommi Björnman acted as the President & CEO
of Suominen until June 30, 2025. Janne Silonsaari
acted as the interim President & CEO from June 30,
2025, until August 10, 2025.
The CEO is supported by the Suominen Leadership
Team. The CEO acts as the Chair of the Suominen
Leadership Team and as the immediate supervisor of
the Suominen Leadership Team members.
Suominen Leadership Team
In 2025 the Suominen Leadership Team consisted of:
Suominen Leadership
Team member Team member since Born Gender Nationality Education Position
Share ownership on
December 31, 2025
Charles Héaulmé 2025 (joined Suominen August 11, 2025) 1966 Male French B.Sc. (Business Administration) President & CEO 44,750
Janne Silonsaari 2023 1980 Male Finnish M.Sc. (Econ. and Business Adm.) CFO
(interim President & CEO
June 30, 2025–August 10, 2025)
-
Francois Guetat 2025 (joined Suominen November 3, 2025) 1974 Male French M.Sc. (Mechanical Engineering) COO -
Markku Koivisto 2017 1971 Male Finnish M.Sc. (Tech.) EVP, EMEA & CTO 53,172
Minna Rouru 2025 (joined Suominen January 20, 2025) 1972 Female Finnish M.Sc. (Social Sciences) Chief People & Communications Officer 1,300
Mark Ushpol 2025 (joined Suominen January 6, 2025) 1963 Male U.S. Bachelor of Commerce EVP, Americas -
Until July 31, 2025
Jonni Friman 2023 1971 Male Finnish and
Swedish
M.Sc. (Industrial Engineering and
Management)
EVP, Transformation Management Office -
Until June 30, 2025
Tommi Björnman 2023 1966 Male Finnish M.Sc. (Industrial Engineering) President & CEO -
Until October 29, 2025
Darryl Fournier 2025 (joined Suominen February 10, 2025) 1965 Male U.S. MBA, B.S. (Chemical Engineering) COO -
21Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Suominen’s operative organization
Suominen’s operative organization consists of two
business areas, EMEA and the Americas, and global
functions supporting the business. 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.
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 interest 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 provides 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 related
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.
22Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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.
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 are 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 by 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 Suominen
Leadership Team members, who are responsible for
identifying and assessing risks within their own area of
responsibility.
Audit
Internal audit
Internal audit within the Company is conducted on an
ad hoc basis and executed by an external party. 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 Suominen Leadership 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 Patent
and Registration Office. 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 2025
The Annual General Meeting held on April 25, 2025,
elected KPMG Oy Ab, an Authorized Public Accountant
firm, as the auditor of the Company. KPMG Oy
Ab appointed Anders Lundin, Authorized Public
Accountant, as the principal responsible auditor of
the Company. During the financial years 2015–2024,
the Company’s auditor was the Authorized Public
Accountant firm Ernst & Young Oy and the auditor
representing it.
Audit fees in 2025
Auditor's fees and services, Suominen Group EUR thousand
Auditing 474
Other statutory services* 102
Non-audit related fees
(tax and other consulting fees) 6
TOTAL 583
* Other statutory services included fees paid for assurance of the sustainability
reporting.
Insider management
Suominen complies with the EU Market Abuse
Regulation (“MAR”), the Finnish Securities Markets
Act, and the regulations and guidelines issued by the
Finnish Financial Supervisory Authority and Nasdaq
Helsinki Ltd. 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
23Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
members of the Suominen Leadership Team
(collectively “Directors”) and their closely associated
persons have the duty to notify Suominen and 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 the administration of the Company’s
insider matters.
Without limiting the obligations arising from
MAR, the Securities Markets Act or other applicable
regulations, the Company’s insider administration 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 Suominen
Leadership 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
Suominen Leadership Team are obligated to report
any planned or executed related party transactions
to the Company’s Chief Financial Officer without
undue delay.
24Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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 April 25, 2025, Suominen’s aim is to
offer a framework for remuneration that incentivizes
the pursuit of 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 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.
2025 CEO remuneration
at a glance
Tommi Björnman served as the Company’s CEO until
June 30, 2025. Janne Silonsaari was first nominated as
interim CEO from June 30 and served until August 10,
2025. Charles Héaulmé was appointed as President &
CEO on August 11, 2025.
Total remuneration paid to the CEO may include
base salary, benefits, supplementary pension
contributions, and incentives according to the
applicable plans. Each CEO’s remuneration reflects
their position and the period in the CEO role.
In 2025, the remuneration paid to Tommi Björnman
included fixed base salary and benefits, supplementary
pension contributions, the outcome of the Global
STI Plan for 2024 payable in 2025, and a reward from
the Matching Restricted Share Plan (“MRSP”). No other
long-term incentive (LTI) payments were made
in 2025.
The remuneration earned by Janne Silonsaari during
his interim CEO assignment consisted of fixed salary
and benefits only. Potential payments for short-term
incentives during 2025 were based on his primary
position as CFO.
The remuneration paid to Charles Héaulmé for the
period from August 11 onwards consisted of fixed
base salary, benefits, and supplementary voluntary
pension contributions. Going forward, he is eligible
to participate in the Company’s ongoing short- and
long-term incentive plans in accordance with the
plan terms, with any potential payments made on a
pro-rated basis. As of 2026, the CEO is also entitled to
participate in the Annual Shares Contribution plan.
Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
25
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 January 28, 2026.
This Report provides information on the remuneration
paid during the financial year 2025. For updated
information on the Board and executive remuneration,
please visit our website: www.suominen.fi.
1.1 Remuneration at Suominen
The aim of Suominen’s Remuneration Policy is to
offer a framework for remuneration that incentivizes
the pursuit of 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.
- The majority of the performance-based
incentives emphasize long-term, rather than
short-term, performance and have a direct link to
shareholder value.
- A 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 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
the implementation of Suominen’s strategy and the
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
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
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’s performance.
26Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
1.2 Pay-for-performance during
the preceding five years
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 2021 to 2025.
During the last five years, remuneration for the
CEO and our employees (on average) has been partly
well aligned 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 a different number of
Board and Committee meetings during the year.
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
27Suominen Annual Report 2025
Remuneration development and company performance 2021–2025
2021 2022 2023 2024 2025
CEO (Charles Héaulmé, as of August 11, 2025)
total remuneration¹ (EUR thousand) 258.2
Interim CEO (Janne Silonsaari, from June 30 to August
10, 2025) fixed remuneration² (EUR thousand)** 26.0
CEO (Tommi Björnman, until June 30, 2025) total
remuneration¹ (EUR thousand) 385.2 604,2 610.3
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) 957.9 1,118.9
Index⁴ 100% 119% 47% 63% 93%
Employee pay (average)⁵ (EUR thousand) 53.4 58.9 63.9 66.9 64.6
Index⁴ 100% 110% 120% 125% 108%
Total Board remuneration⁶ (EUR thousand) 258.4 285.0 289.0 332.0 387.5
Index⁴ 100% 110% 112% 128% 150%
Charles Héaulmé 81.0 84.5
Jaakko Eskola 69.9 75.0 76.0 0.5
Andreas Ahlström 35.7 39.0 38.5 56.0 58.5
Björn Borgman 35.4 39.5 41.5 44.0 47.0
Gail Ciccione 45.0
Maija Joutsenkoski 43.5
Nina Linander 46.8 52.5 52.5 56.6 59.0
Aaron Barsness 40.0 42.0 49.5 3.5
Laura Remes 37.0 44.5 46.5
Laura Raitio 35.7 39.0 1.5
Sari Pajari-Sederholm 34.9
2021 2022 2023 2024 2025
3-year TSR⁷ (%) 126% 41% -35% -45% -31%
Share price development⁸
(EUR) 4.82 2.86 2.70 2.38 1.72
Index⁴ 98% 58% 55% 49% 35%
Comparable EBITDA
(EUR million) 47.0 15.3 15.8* 17.0 12.6
Index⁴ 77% 25% 26% 28% 21%
¹ CEO total remuneration includes all payments made to the CEO during the stated period (excluding voluntary pension contributions).
² Interim CEO remuneration refers to payments made to individuals serving as interim CEO 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 (2021) 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 the 3-month closing average prior to the end of the financial year. For example, the
3-year TSR for 2025 is calculated as (Q4/2025 average share price - Q4/2022 average share price) ÷ Q4/2022 average share price + (paid dividends in 2023, 2024 and 2025)
÷ Q4/2022 average share price.
⁸ Share price development is calculated based on 3-month closing average prior to the end of the financial year.
* In the Remuneration Report in year 2023, the Comparable EBITDA has been reported as 15.9. The correct amount is 15.8.
** Based on Tommi Björnman’s termination agreement, he will receive additional compensation in January 2026 corresponding to 12 months’ salary, totaling 462,000 euros.
28Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
2. Remuneration
of the Board of
Directors for
the preceding
financial year
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 25, 2025, resolved
that the annual remuneration payable to the members
of the Board remains unchanged. The current
remuneration is as follows:
- The Chair is paid an annual fee of EUR 74,000.
- The Deputy Chair is paid an annual fee of
EUR 45,000.
- Other Board members are paid an annual fee of
EUR 35,000.
- The 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.
Remuneration of the Board of Directors in 2025
Annual
remuneration paid in
cash (EUR)
Value of the annual
remuneration paid in
shares (EUR)
Annual remuneration
paid in shares
(no. of shares)
Meeting fees
(EUR) Total (EUR)
Charles Héaulmé Chair 55,501.63 18,498.37 8,767 10,500 84,500
Andreas Ahlström Deputy Chair 33,751.59 11,248.41 5,331 13,500 58,500
Aaron Barsness
(until April 25, 2025)
Member 3,500 3,500
Björn Borgman Member 26,251.94 8,748.06 4,146 12,000 47,000
Maija Joutsenkoski
(as of April 25, 2025)
Member 26,251.94 8,748.06 4,146 8,500 43,500
Gail Ciccione
(as of April 25, 2025)
Member 26,251.94 8,748.06 4,146 10,000 45,000
Nina Linander* Member 33,751.59 11,248.41 5,331 14,000 59,000
Laura Remes Member 26,251.94 8,748.06 4,146 11,500 46,500
* Chair of the Audit Committee; including an additional fee of EUR 10,000.
1.3 Information on the previous
vote for the Remuneration
Report and any deviations or
clawbacks made
At the AGM on April 25, 2025, 94.4% of the votes cast
were in favor of the Remuneration Report 2024. The
PRC and the Board have considered the feedback
provided by the shareholders at the AGM.
During 2025, Suominen did not exercise any rights
to reclaim (clawback) or cancel (malus) any paid or
unpaid incentives. Also, there was no need to deviate
from the Remuneration Policy during 2025.
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 12, 2025.
Members of the Board are not employees of
Suominen and do not participate in any Suominen
incentive scheme or pension arrangement, except
for Charles Héaulmé, who became the CEO as of
August 11, 2025. 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 2025 have been in compliance with the
Remuneration Policy. In 2025, the following fees were
paid to the members of the Board:
Remuneration of the members of the Board of
Directors, including the value of the remuneration paid
in Suominen shares, totaled EUR 387,500 in 2025.
Additionally, compensation for expenses has been paid
in accordance with the Company’s travel policy.
29Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Short-term Incentive KPIs and level of
achievement for the CEO
STI 2024 KPIs and achievement for the CEO¹
KPI Weight Achievement
Group EBITDA 50% Between threshold and target
Group Contribution
Margin (CM)
20% Between threshold and target
Group Raw Material
Efficiency (RME)
10% Below threshold
Personal targets 20% Between target and maximum
Total 100% Between Threshold and Target
STI 2025 KPIs and achievement for the CEO
KPI Weight Achievement
Group EBIT 50% Below threshold
Group Operative
Cash Flow
20% Between threshold and target
Group Raw Material
Efficiency (RME)
10% Below threshold
Personal targets 20% Between threshold and target
Total 100% Below threshold
1
Paid in 2025.
3. Remuneration of
the President & CEO
for the preceding
financial year
In 2025, the Company’s CEO position was held by
three individuals. Tommi Björnman served as the
Company’s CEO until June 30, 2025. Janne Silonsaari
acted as interim CEO from June 30 to August 10, 2025.
Charles Héaulmé was appointed President & CEO as
of August 11, 2025. The remuneration presented below
reflects payments made or due for the period each
individual served as CEO.
Tommi Björnman until June 30, 2025
Tommi Björnman acted as the Company’s CEO until
June 30, 2025. In 2025, CEO Tommi Björnman’s total
remuneration was EUR 665,297, consisting of fixed
base salary and benefits of EUR 501,858, a cash bonus
from the Global STI Plan 2024 of EUR 67,870, and
a reward from the Matching Restricted Share Plan
(“MRSP”) (earning period 1 June 2024–1 June 2025) of
EUR 40,604. Apart from the Matching Restricted Share
Plan (“MRSP”), no other LTI payments were received in
2025. Supplementary voluntary pension contributions
amounted to EUR 54,965.
Janne Silonsaari June 30 to August 10, 2025
Janne Silonsaari acted as interim CEO from
June 30 to August 10, 2025. During the interim CEO
period, he received a fixed base salary and benefits of
EUR 26,032.
Charles Héaulmé as of 11 August 2025
Charles Héaulmé was appointed President & CEO as
of August 11, 2025. His total remuneration for 2025
in the CEO role amounted to EUR 300,298. The
total remuneration consisted of a fixed base salary
(including car and housing allowance) and benefits
(phone, life and health insurance) of EUR 258,182.
Supplementary voluntary pension contributions
amounted to EUR 42,116.
The President & CEO Charles Héaulmé is eligible
to participate in Suominen’s short-term incentive
plan and ongoing long-term incentive plans for the
periods 2023–2025, 2024–2026 and 2025–2027, with
any potential rewards paid on a pro-rated basis. He
is also entitled to an Annual Shares Contribution as
of 2026. In addition, he is eligible for a sign-in bonus
of 200,000 company shares, to be delivered during
Q3/2026, provided that the CEO service agreement
remains in force at that time.
In 2025, Charles Héaulmé’s Global STI Plan 2025
was based on Group EBIT (earnings before interest and
taxes, 50% weight), Operative Cash Flow (20% weight),
12_pie
Base + bene ts 76%
76
Non-statutory pension 8%
8
STI 10%
10
LTI 6%
6
T
otal CEO pay in 2025 in proportions
Base + benefits 76%
Non-statutory pension 8%
STI 10%
LTI 6%
10
0
20
40
60
80
100
120
140
160
2021 2022 2023 2024 2025
Share price (index)
Comparable EBITDA (index)
CEO remuneration (index)
13_columns and line
Share
price
(index)
Comparab
le EBITDA
(index)
CEO
remunerati
on (index)
2021
2022
2023
2024
2025
%
Company performance and C
EO remuneration 2021–2025
11
Raw Material Efficiency (10% weight), and personal
targets (20% weight). The Board decided at its meeting
on January 28, 2026 that no Global STI 2025 bonuses
will be paid.
30Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Base salary + benefits Paid in 2025:
Base salary (including holiday pay):
EUR 485,898
Benefits:
EUR 15,960
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 a 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 was eligible for benefits such as company car, health insurance,
lunch, and telephone.
Supplementary pension
arrangement
Paid in 2025:
EUR 54,965
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 participated in a non-statutory defined-contribution pension
plan. The Company’s contribution was 11.5% of the annual base salary in 2025. Pension starts at the
age of 63.
Cash bonus
(short-term remuneration)
Earned from financial year 2024
(Global STI 2024, paid in 2025):
EUR 67,870
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 percentage in 2025 was 60% of the annual base salary
(excluding holiday pay).
CEO Tommi Björnman’s remuneration in 2025 is further described in the table below.
31Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Share-based incentive plans
(long-term remuneration)
Earned from Matching Restricted
Share Plan (“MRSP”) June 1, 2024–
June 1, 2025, paid in 2025:
EUR 40,604
With the exception of the Matching
Restricted Share Plan (“MRSP”),
no LTI was paid in 2025.
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 to earn 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 a number of Suominen shares but paid in shares and cash
intended to cover the taxes that incur from the receipt of shares.
Complies with the Policy:
The CEO is eligible to participate in a Matching Restricted Share Plan (“MRSP”), 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 a competitive reward plan that is
based on acquiring, receiving and accumulating the Company’s shares.
Under the plan, the CEO was expected to own or acquire up to 30,000 shares of the Company. The
Company was to 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 included three vesting periods, June 1, 2023–June 1, 2024, June 1, 2024–June 1, 2025,
and June 1, 2025–June 1, 2026. The potential reward was to 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 was in force at the time of the reward payment.
The second vesting period ended in June 2025, and in total 9,359 shares were transferred to the
CEO. The plan was terminated at the end of June as Tommi Björnman’s service in the Company
ended.
The CEO is eligible to participate in the Company’s Performance Share Plan, which currently
includes three 3-year performance periods, calendar years 2023–2025, 2024–2026, and
2025–2027.
The CEO was a participant in the Company’s Performance Share Plan, Performance Period
2023–2025. The potential reward of the plan is based on the Relative Total Shareholder Return
(TSR). The potential reward for the CEO to be paid corresponds to the value of an approximate
maximum total of 168,500 shares (gross) of the Company. The maximum total of shares
includes also the proportion to be paid in cash. As a rule, no reward will be paid if a participant’s
employment or service ends before the reward payment.
Share ownership prerequisite The CEO must hold 50% of the net number of shares granted under the long-term performance-
based plan, until his or her shareholding in total corresponds to the value of his or 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 neither received nor sold any shares from any LTI plan.
32Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
CEO Charles Héaulmé’s remuneration in 2025 is further described in the table below.
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Base salary + benefits Paid in 2025:
Base salary (including holiday pay,
car and housing allowances):
EUR 254,429
Other benefits (phone, life
insurance, health insurance for the
CEO and spouse):
EUR 3,753
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
a 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.
Supplementary pension
arrangement
Paid in 2025:
EUR 42,116
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 is entitled to a supplementary pension insurance paid by the
Company. The annual supplementary pension payment shall be 20% of the CEO’s annual fixed base
salary.
Cash bonus
(short-term remuneration)
No short-term remuneration
(STI 2024) paid in 2025.
No short-term remuneration
(STI 2025) to be paid in 2026.
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: The CEO is eligible to participate in the Company’s short-term incentive
plans according to the terms and conditions of the plan. The maximum STI opportunity is 150% of
the annual base salary.
Sign-in bonus The sign-in bonus will be paid
during Q3/2026, provided that the
agreement is still in force.
The purpose of the sign-in bonus is to ensure successful recruitment and provide a competitive,
market-aligned remuneration package for the CEO. The bonus is designed to align the CEO’s
interests with those of shareholders from the beginning of the assignment and to support the
CEO’s long-term commitment to Suominen. Under the terms of the CEO service agreement,
the sign-in bonus is delivered in the form of Company shares and is conditional upon continued
employment until the delivery date.
Complies with the Policy: The CEO is eligible for a sign-in bonus of 200,000 company shares, to
be paid during Q3/2026, provided that the Agreement is still in force. Possible taxes shall be paid by
the recipient.
33Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Element Quantum
Purpose, link to strategy and description
from the remuneration policy Comment on compliance
Share-based incentive plans
(long-term remuneration)
No long-term remuneration (LTI)
in 2025.
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 to earn 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 a number of Suominen shares but paid in shares and cash
intended to cover the taxes that incur from the receipt of shares.
Complies with the Policy:
The CEO is eligible to participate in the company’s ongoing long-term incentive plans for the
periods 2023–2025, 2024–2026 and 2025–2027. The potential payment under incentive plans
shall be pro-rated.
- The maximum earning opportunity for the LTI Performance Period 2023–2025 equals
51,872 shares (gross) of the Company. The performance metric in the plan is relative
Total Shareholder Return (TSR).
- The maximum earning opportunity for the LTI Performance Period 2024–2026 equals
185,205 shares (gross) of the Company. The performance metrics in the plan are Absolute
Total Shareholder Return (40%), Relative Total Shareholder Return (40%) and raw material
efficiency for the first year (20%). The possible reward under the plan will be paid partly in
Suominen shares and partly in cash in spring 2027.
- The maximum earning opportunity for the LTI Performance Period 2025–2027 equals
318,830 shares (gross) of the Company. The performance metrics in the plan are Absolute
Total Shareholder Return (40%), Relative Total Shareholder Return (40%) and raw material
efficiency for the first year (20%). The possible reward under the plan will be paid partly in
Suominen shares and partly in cash in spring 2028.
The CEO is also entitled to an Annual Shares Contribution plan as of 2026. Under the plan, the
CEO is expected to acquire up to 100,000 Company shares. The Company will match the share
investment by way of the CEO receiving Company shares, without consideration, as follows:
100,000 shares at minimum performance (MEUR 20 comparable EBITDA); 300,000 shares at target
(MEUR 25 comparable EBITDA); 500,000 shares at maximum (MEUR 30 comparable EBITDA). The
Company shall transfer the shares within Q1 of the following year subject to a Board decision. As
of 2027, the first half of the plan shall be unconditional and the second half based on performance
targets set by the Board, provided that the CEO’s service in the Company is in force at the time of
the reward payments. A proportion of the incentives is to be paid in cash, intended to cover taxes
and tax-related costs arising from the rewards to the CEO.
Share ownership prerequisite The CEO must hold 50% of the net number of shares granter under the long-term performance-
based plan, until his or her shareholding in total corresponds to the value of his or 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 neither received nor sold any shares from any LTI plan.
34Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Tax management,
tax strategy and
footprint
Tax management and tax strategy
Suominen Group (Suominen) has a tax policy as well
as tax guidelines approved by the Board of Directors
of Suominen. All Suominen Group companies must
comply with the policy and guidelines. The Chief
Financial Officer (CFO) of Suominen 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 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 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 to a situation where the Finnish
Group companies’ deductible value added tax on their
purchases subject to value added tax is considerably
higher than the value added tax they remit based on
their taxable sales. As a result, Suominen receives a
refund of value added tax in Finland.
Suominen’s tax footprint includes not only the taxes
and similar payments that are Group companies’ costs
but also the taxes and similar payments that the Group
companies collect and remit, such as indirect taxes.
Deferred taxes, which arise from timing differences
between taxation and accounting and are recognized
in the financial statements, are not included in the tax
footprint.
In 2025, Suominen employed on average 695 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 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
35Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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.
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
to offset different tax or similar payments.
Taxes and similar payments borne
2025 2024
EUR thousand Finland Other countries Finland Other countries
Corporate income tax, tax on profit 28 -1,576 -1,387 -1,211
Property taxes -83 -1,100 -84 -1,255
Employer contributions and taxes -1,881 -11,430 -1,920 -11,079
VAT as expense -25 -4 -22 -10
Customs duties on import* -481 -1,595 -259 -1,461
Excise duties -20 -325 -83 -526
Other taxes and similar payments -52 -226 -49 -258
Received tax credits − 264 − 257
TOTAL -2,515 -15,992 -3,805 -15,545
Taxes and similar payments collected and paid
2025 2024
EUR thousand Finland Other countries Finland Other countries
Net VAT 2,921 -16,492 3,444 -11,858
Payroll taxes and similar payments collected and paid -3,473 -9,491 -3,502 -9,857
Withholding taxes on various payments − -134 -178 -131
TOTAL -552 -26,117 -237 -21,846
* Customs duties are borne by the company importing or exporting goods. Customs duties are not collected and/or paid by some other taxpayer. For these reasons, customs
duties are reported as taxes borne.
36Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Board of Directors
DECEMBER 31, 2025
GAIL CICCIONE
b. 1960
BBA
Business owner, Trinity
Operations Partner, LLC
Member of the Board
since 2025
Independent member
Shareholding*:
4,146 Suominen shares
BJÖRN BORGMAN
b. 1975
M.Sc. (Industrial Engineering)
CEO, HL Display AB
Member of the Board
since 2020
Independent member
Shareholding*:
32,312 Suominen shares
ANDREAS AHLSTRÖM
b. 1976
M.Sc. (Economics and Business
Administration)
CEO, Ahlström Invest B.V.
Member of the Board
since 2015
Deputy Chair of the Board
since 2020
Non-independent member
Shareholding*:
36,320 Suominen shares
Aaron Barsness acted as a member of the Board until April 25, 2025.
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 on December 31, 2025.
NINA LINANDER
b. 1959
B.Sc. (Economics) and MBA
Member of the Board
since 2020
Independent member
Shareholding*:
37,159 Suominen shares
MAIJA JOUTSENKOSKI
b. 1981
M.Sc. (Technology)
Investment Director,
A. Ahlström Oy
Member of the Board
since 2025
Non-independent member
Shareholding*:
4,146 Suominen shares
LAURA REMES
b. 1980
M.Sc. (Technology)
SVP, Business Transformation,
Metsä Board
Member of the Board
since 2023
Independent member
Shareholding*:
10,366 Suominen shares
CHARLES HÉAULMÉ
b. 1966
B.Sc. (Business Administration)
President & CEO,
Suominen Oyj since 2025
Member of the Board
since 2024
Chair of the Board since 2024
Non-independent member
Shareholding*:
44,750 Suominen shares
37Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Suominen Leadership Team
DECEMBER 31, 2025
JANNE SILONSAARI
CFO
b. 1980
M.Sc. (Economics and Business
Administration)
Joined Suominen in 2023
Shareholding*: -
FRANCOIS GUETAT
Chief Operating Officer
b. 1974
M. Eng. (Mechanical
Engineering)
Joined Suominen in 2025
Shareholding*: -
MINNA ROURU
Chief People &
Communications Officer
b. 1972
M.Sc. (Social Sciences)
Joined Suominen in 2025
Shareholding*:
1,300 Suominen shares
MARKKU KOIVISTO
Chief Commercial &
Technology Officer
(as of February 1, 2026)
EVP, EMEA & CTO
(until January 31, 2026)
b. 1971
M.Sc. (Technology)
Joined Suominen in 2017
Shareholding*:
53,172 Suominen shares
MARK USHPOL
EVP, Americas
(until January 31, 2026)
b. 1963
Bachelor of Commerce
Joined Suominen in 2025
Shareholding*: -
Jonni Friman acted as EVP, Transformation Management
Office and a member of the Suominen Leadership Team until
July 31, 2025.
Tommi Björnman acted as the President & CEO until
June 30, 2025. Janne Silonsaari acted as interim President &
CEO from June 30, 2025 to August 10, 2025.
Darryl Fournier acted as Chief Operating Officer and a member
of the Suominen Leadership Team from February 10, 2025 until
October 29, 2025.
Marika Väkiparta was appointed as the Chief Strategy and
Transformation Officer and a member of the Suominen
Leadership Team as of February 1, 2026.
Kimmo Raunio was appointed as CFO and a member of the
Suominen Leadership Team at the latest as of June 1, 2026.
Until then, Suominen’s CFO Janne Silonsaari will continue in his
current role.
On February 26, 2026, Suominen announced that Minna Rouru,
Chief People & Communications Officer, and a member of the
Suominen Leadership Team leaves the company at the latest on
August 26, 2026.
More detailed, up-to-date information on the principal
working experience, positions of trust and remuneration of
the members of Suominen Leadership 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 on
December 31, 2025.
CHARLES HÉAULMÉ
President & CEO
b. 1966
B.Sc. (Business Administration)
Joined Suominen in 2025
Shareholding*:
44,750 Suominen shares
38Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
REPORT BY
THE BOARD
OF DIRECTORS
AND FINANCIAL
INFORMATION
Report by the Board of Directors ................................41
Consolidated financial statements (IFRS)
...................109
Parent company financial statements (FAS)
...............166
Auditor’s report
.......................................................178
Assurance report on the sustainability statement
....... 183
Independent auditor’s report on
ESEF consolidated financial statements
....................186
Key ratios
................................................................188
39Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
2. Accounting estimates and judgements ................ 117
3. Financial risk management
.................................. 117
4. Management of capital
.......................................122
5. Goodwill
............................................................ 122
6. Intangible assets
.................................................124
7. Property, plant and equipment
............................126
8. Group companies
...............................................128
9. Equity instruments
..............................................128
10. Inventories
......................................................... 129
11. Trade and other receivables
................................130
12. Financial instruments
..........................................132
13. Equity and information on Suominen share
.........134
14. Interest-bearing liabilities
.................................... 137
15. Provisions
..........................................................139
16. Trade payables and other liabilities
......................140
17. Fair value hierarchy
............................................. 140
18. Revenue from contracts with customers
............. 141
19. Segment reporting and entity-wide disclosures
...142
20. Other operating income and expenses
................143
21. Leases and right-of-use assets
............................ 143
22. Fees paid to auditors
..........................................146
23. Employee benefits
.............................................. 147
24. Depreciation, amortization and impairment
of assets
............................................................149
25. Financial income and expenses
...........................150
26. Income taxes
..................................................... 151
27. Share-based payments
.......................................154
28. Earnings per share
.............................................. 157
29. Adjustments to statement of cash flows .............. 157
30. Information about key management personnel
.... 157
31. Contingent liabilities
...........................................160
32. Events after the reporting period
.........................160
Key ratios per share
................................................163
Calculation of key ratios per share
............................164
PARENT COMPANY FINANCIAL
STATEMENTS (FAS)
..................................................166
Income statement
...................................................166
Balance sheet
..........................................................167
Cash flow statement
................................................ 169
Notes
......................................................................170
AUDITOR’S REPORT
................................................ 178
ASSURANCE REPORT ON
THE SUSTAINABILITY STATEMENT
..........................183
INDEPENDENT AUDITOR’S REPORT ON
ESEF CONSOLIDATED FINANCIAL STATEMENTS
..... 186
KEY RATIOS
........................................................... 188
Calculation of key ratios
...........................................189
Report by the Board of Directors
and Financial Information
January 1–December 31, 2025
REPORT BY THE BOARD OF DIRECTORS .................. 41
Highlights of Suominen’s financial year 2025
........... 41
Shares and governance
............................................ 44
Composition of the Nomination Board
...................... 47
Changes in the Suominen Leadership Team
............... 47
Annual General Meeting
............................................ 48
Corporate Governance Statement and
Remuneration Report
............................................... 48
Business risks and uncertainties
............................... 48
Business environment
............................................... 50
Sustainability statement
............................................51
Basis for preparation
................................................. 52
Governance
............................................................. 53
Strategy
................................................................... 56
Impacts, risks and opportunities
................................ 59
Suominen’s EU Taxonomy report
............................... 63
Climate change
........................................................ 67
Pollution ...................................................................75
Water
........................................................................ 77
Resource use and circular economy
.......................... 79
Own workforce
........................................................ 84
Business conduct
..................................................... 90
Appendix
.................................................................. 95
Information on the separate financial statements
of the parent company
........................................... 106
Outlook
................................................................. 106
Proposal by the Board of Directors
for the use of the profit
.......................................... 106
Events after the reporting period
........................... 106
CONSOLIDATED FINANCIAL STATEMENTS (IFRS)
... 109
Consolidated statement of financial position
.............109
Consolidated statement of profit or loss
....................111
Consolidated statement of other comprehensive
income
....................................................................111
Consolidated statement of changes in equity
............ 112
Consolidated statement of cash flows
...................... 113
Notes to the consolidated financial statements
.......114
1. Material accounting policy information
– consolidated financial statements
.................... 114
40
Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Highlights of Suominen’s
financial year 2025
-Net sales decreased by 10.8% and were EUR 412.4 million (462.3)
-Comparable EBITDA decreased to EUR 12.6 million (17.0)
-Cash flow from operations totaled EUR 12.2 million (3.9)
-The Board of Directors proposes to the Annual General Meeting that no
dividend shall be distributed for the financial year 2025
Report by the Board of Directors 2025
Key figures 2025 2024 2023
Net sales, EUR million 412.4 462.3 450.9
Comparable EBITDA, EUR million 12.6 17.0 15.8
EBITDA, EUR million 11.3 17.2 11.2
Comparable operating profit or loss, EUR million -4.2 -1.4 -2.8
Operating profit or loss, EUR million -5.9 -1.3 -7.5
Profit or loss for the period, EUR million -12.1 -5.3 -12.8
Earnings per share, basic, EUR -0.21 -0.09 -0.22
Earnings per share, diluted, EUR -0.21 -0.09 -0.22
Cash flow from operations per share, EUR 0.21 0.07 0.53
Return on invested capital, rolling 12 months, % -3.3 -0.7 -4.1
Gearing, % 80.7 51.7 35.3
Dividend per share, EUR* 0.00 0.00 0.10
* 2025 The proposal of the Board of Directors to the Annual General Meeting
The figures shown in brackets refer to the performance in 2024, unless otherwise stated.
41Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Net sales
In 2025, Suominen’s net sales decreased by 10.8%
from the comparison period to EUR 412.4 million
(462.3). The decrease in sales was driven by lower sales
volumes, but we were able to offset the lower volumes
partly with better sales prices and sales mix. Currencies
impacted on net sales negatively by EUR 12.0 million.
Two significant incidents at our US facilities
constrained our supply capabilities, negatively
impacting both sales and profitability during the third
and fourth quarters.
Net sales of the Americas business area were
EUR 252.6 million (287.9) and net sales of the EMEA
business area were EUR 159.9 million (174.4).
EBITDA, operating profit / loss
and result
To improve our profitability, we launched a cost-saving
program at the end of the second quarter, targeting
approximately EUR 10 million in benefits over
24 months. Implementation advanced steadily in the
second half of 2025, delivering results in line with our
original plan.
Comparable EBITDA (earnings before interest, taxes,
depreciation and amortization) was EUR 12.6 million
(17.0). EBITDA was EUR 11.3 million (17.2). The main
contributor to the decrease was lower sales volumes.
However, higher sales prices partly offset the effect of
the lower sales volumes. Currencies impacted EBITDA
negatively by EUR 0.3 million.
Comparable operating profit / loss amounted
to EUR -4.2 million (-1.4). Operating profit / loss
amounted to EUR -5.9 million (-1.3).
Items affecting comparability of EBITDA were
EUR -1.3 million (+0.2), related mainly to restructuring
programs. Items affecting comparability of operating
profit / loss were EUR -1.7 million (+0.2), arising mainly
from expenses related to restructuring programs and
impairment losses arising from the closure of one
production line.
In 2025, the loss before income taxes was EUR -13.4
million (-5.3). Income taxes for the financial year were
EUR +1.3 million (+0.1).
The result for the period was EUR -12.1 million (-5.3).
Net sales, EBITDA and operating profit / loss
EUR thousand 2025 2024 2023
Net sales 412,433 462,318 450,851
Comparable EBITDA 12,594 17,001 15,813
EBITDA 11,298 17,174 11,163
Comparable operating profit
or loss -4,182 -1,426 -2,750
Operating profit or loss -5,904 -1,257 -7,517
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, 2025,
amounted to EUR 77.6 million (60.8). Gearing was
80.7% (51.7%) and the equity ratio 35.3% (37.9%).
In 2025, net financial expenses were EUR -7.5 million
(-4.1), or -1.8% (-0.9%) of net sales. The net effect of
changes in foreign exchange rates in financial items
was EUR -2.1 million (+1.0).
Cash flow from operations in 2025 was EUR 12.2
million (3.9). Cash flow from operations per share in
2025 was EUR 0.21 (0.07). The financial items in the
cash flow from operations, totaling EUR -6.1 million
(-5.0), were principally impacted by interest paid during
the reporting period. The change in the net working
capital in 2025 was EUR 8.3 million positive (EUR 5.9
million negative), mainly due to the release of cash
from receivables and inventories.
At the end of June 2025, Suominen entered into a
single-currency syndicated credit facility agreement
which consists of a EUR 50 million term loan and a
EUR 50 million revolving credit facility with a maturity
of three years with a one-year extension option. The
lenders for the facility are Danske Bank A/S and Nordea
Bank Abp. The new credit facility includes leverage
ratio and gearing as financial covenants, and it replaces
the previous EUR 100 million syndicated revolving
credit facility agreement of Suominen provided by
Danske Bank A/S and Nordea Abp.
The financial covenants of the syndicated credit
facility have to be fulfilled quarterly.
The financial covenants of these loans are regularly
monitored. In order to ensure that the covenant
conditions are met, Suominen has agreed with the
lenders about amendment of the covenant thresholds.
Management has prepared cash flow forecasts and
based on the current projection, including profitability
improvement actions, the company expects to meet
all covenant conditions and maintain sufficient liquidity
for the 12 months following the reporting date.
Capital expenditure
Throughout 2025, we executed our strategic initiatives
as planned. Our investment in a new production line
in Alicante, Spain, announced in 2024 to enhance
our sustainable product capabilities, progressed
towards commercial production commencing at the
beginning of the second quarter of 2026, supporting
our sustainability strategy and our commitment to
innovation in sustainable solutions.
In 2025, the gross capital expenditure totaled
EUR 26.3 million (16.0) and the largest items were
related to the growth investment initiatives in
Alicante, Spain, and Bethune, USA. Other investments
were mainly for maintenance.
42Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Quarterly development 2025 2025
EUR thousand 10–12 7–9 4–6 1–3
Jan −Dec
2025
Net sales 95,338 99,767 99,827 117,501 412,433
Comparable EBITDA 1,890 3,428 3,217 4,060 12,594
as % of net sales 2.0 3.4 3.2 3.5 3.1
Items affecting comparability -558 -102 -636 0 -1,296
EBITDA 1,331 3,326 2,581 4,060 11,298
as % of net sales 1.4 3.3 2.6 3.5 2.7
Comparable operating profit / loss -2,249 -675 -966 -292 -4,182
as % of net sales -2.4 -0.7 -1.0 -0.2 -1.0
Items affecting comparability -984 -102 -636 0 -1,722
Operating profit / loss -3,233 -777 -1,602 -292 -5,904
as % of net sales -3.4 -0.8 -1.6 -0.2 -1.4
Net financial items -1,365 -1,341 -2,888 -1,874 -7,467
Profit / loss before income taxes -4,598 -2,117 -4,489 -2,166 -13,370
as % of net sales -4.8 -2.1 -4.5 -1.8 -3.2
Research and development
At Suominen, research and development activities are
organized into the R&D function. At the end of 2025,
the R&D function had 13 (14) employees. Research and
development expenses amounted to EUR 2.8 million
(4.0), corresponding to 0.7% (0.9%) 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 company’s strategy
is to differentiate with innovation and commercial
excellence. Legislation and consumer behavior
drive demand for more sustainable products, and
we continuously develop new products made of
renewable, recycled, compostable or plastic-free
materials to meet the market needs.
Depreciations and amortizations were EUR -16.8
million (-18.4) and impairment losses EUR -0.4 million
(-0.0).
Capital expenditure and depreciation,
amortization and impairment losses
EUR thousand 2025 2024 2023
Gross capital expenditure 26,289 16,004 11,223
% of net sales 6,4 3,5 2,5
Depreciation, amortization
and impairment losses -17,201 -18,428 -18,680
Key ratios
2025 2024 2023
Return on equity (ROE), % -11.4 -4.4 -9.6
Return on invested capital
(ROI), % -3.3 -0.7 -4.1
Equity ratio, % 35.3 37.9 39.5
Interest-bearing net debt,
EUR million* 77.6 60.8 44.1
Capital employed,
EUR million 173.3 178.0 168.4
Gearing, % 80.7 51.7 35.3
* At nominal value
Key ratios per share
2025 2024 2023
Earnings per share, EUR, basic -0.21 -0.09 -0.22
Earnings per share, EUR, diluted -0.21 -0.09 -0.22
Cash flow from operations per
share, EUR 0.21 0.07 0.53
Equity per share, EUR 1.66 2.04 2.17
Price per earnings per share (P/E)
ratio -8.6 -24.9 -12.9
Dividend, EUR* 0.00 0.00 0.10
Dividend payout ratio, % N/A N/A -45.1
Dividend yield, % N/A N/A 3.51
* 2025 The proposal of the Board of Directors to the Annual General Meeting
Additional key ratios per share and the calculation
of the key ratios are presented in the consolidated
financial statements.
Key ratios per share are share issue-adjusted.
Definitions of key ratios per share are presented in
the consolidated financial statements. Key ratios are
alternative performance measures and they are defined
in the Annual Report.
43Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Shares and
governance
Share capital
The number of Suominen’s registered shares was
58,259,219 on December 31, 2025, equaling 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 the 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, 2025, was 1,096,086 shares, accounting
for 1.9% of the average number of shares (excluding
treasury shares). The highest price was EUR 2.73,
the lowest was EUR 1.56, and the volume-weighted
average price was EUR 1.89. The closing price on the
first trading date of the review period, January 2, 2025,
was EUR 2.34 and on the last trading date, December
30, 2025, EUR 1.79.
The market capitalization (excluding treasury shares)
was EUR 103.4 million on December 31, 2025.
Authorizations of the Board
of Directors
The Board of Directors was authorized to decide on
the repurchase of 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 through trading on
the regulated market organized by Nasdaq Helsinki
Ltd at the market price prevailing at the time of
acquisition using the company’s unrestricted equity.
The shares shall be repurchased to be used in the
company’s share-based incentive programs, in order
to disburse the remuneration of the members of the
Board of Directors, to be used 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 is valid until June 30, 2026,
and it revokes all earlier authorizations to repurchase
the company’s own shares.
The Board of Directors was authorized to decide
on the issuance of new shares, conveyance of
the company’s own shares held by the company
and/or granting of option rights and other special
rights entitling to shares referred to in Chapter 10,
Section 1 of the Finnish Companies Act. By virtue of
the authorization, the Board of Directors may, by one
or several resolutions, issue a maximum of 5,000,000
shares. The shares granted by virtue of option
rights and other special rights are included in the
aforementioned maximum number. Option rights and
other special rights may not be granted as part of the
company’s remuneration system.
The authorization revokes all earlier authorizations
regarding the issuance of shares and the issuance
of option rights and other special rights entitling to
shares. The Board of Directors shall decide on all other
terms and conditions related to the authorization. The
authorization is valid until June 30, 2026.
The share issue can be made either against payment
or without payment, and can also be directed to
the company itself. The authorization entitles the
Board of Directors to decide that shares are issued
otherwise than in proportion to the shareholdings
of the shareholders (directed share issue). The
authorization can be used to carry out acquisitions
or other arrangements related to the company’s
business, to finance investments, to improve the
company’s financial structure, as part of the company’s
remuneration system, or to pay the share proportion
of the remuneration of the members of the Board of
Directors, or for other purposes decided by the Board
of Directors.
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 aims to have extensive industrial rights
to nonwoven-based solutions and technologies as
well as the test and pilot equipment needed. In this
way it can offer the best possible support to the Group
companies to satisfy current and future customer
needs.
Personnel
During 2025, Suominen employed 695 FTEs (689) on
average, and 672 (722) FTEs at the end of 2025. The
decrease is mainly in the Operations function.
Personnel-related key ratios
2025 2024 2023
Average number of personnel
(FTEs – full time equivalent) 695 689 682
Wages and salaries,
EUR thousand -45,457 -46,621 -43,598
44Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
In accordance with the resolution of the Annual
General Meeting, in total 36,013 shares were
transferred in May to the members of the Board of
Directors as their remuneration payable in shares.
As part of the CEO’s share-based payment plan
vested, in total 9,359 shares were transferred to the
President & CEO Tommi Björnman in June.
After these transactions, the maximum amount of
the authorization is 4,954,628 shares in aggregate.
Remuneration of the Board payable
in shares
The Annual General Meeting held on April 25, 2025,
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 number of shares forming the remuneration
portion payable in shares was determined based on the
share value in stock exchange trading maintained by
Nasdaq Helsinki Ltd, calculated as the trade volume-
weighted average quotation of the share during the
two-week period immediately following the date on
which the Interim Report of January–March 2025 of
the company was published. The shares were issued
from the treasury shares held by the company by the
decision of the Board of Directors on May 16, 2025.
Share-based incentive plans for the
management and key employees valid
in 2025
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.
The company’s Performance Share Plan currently
includes three three-year performance periods,
calendar years 2023–2025, 2024–2026 and
2025–2027. 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
Performance Share Plan: Ongoing performance periods
Performance period 2023–2025 2024–2026 2025–2027
Incentive based on Total Shareholder Return (TSR) Absolute Total Shareholder
Return (40%), Relative Total
Shareholder Return (40%) and
operative performance and
sustainability goal (20%)
Absolute Total Shareholder
Return (40%), Relative Total
Shareholder Return (40%) and
operative performance and
sustainability goal (20%)
Potential reward payment Vesting conditions were not
fulfilled, no payment
Will be paid partly
in Suominen shares and
partly in cash in spring 2027
Will be paid partly
in Suominen shares and
partly in cash in spring 2028
Participants – 16 persons 20 persons
Maximum number of shares – 621,337 1,097,804
Performance Period 2025–2026; signing bonus Annual Shares Contribution 2026
Annual Shares Contribution 2027 -
unconditional
Incentive based on Employment precondition
until reward payment
Shareholding requirement,
comparable EBITDA
Shareholding requirement
Potential reward payment In Suominen shares in
September 2026
In Suominen shares in spring 2027 In Suominen shares in spring 2028
Participants President & CEO President & CEO President & CEO
Maximum number of shares 200,000 500,000 250,000
the value of the company in the long term, to build
loyalty to the company and to offer them competitive
reward plans based on earning and accumulating the
company’s shares.
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.
45Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
The President & CEO Charles Héaulmé’s
share-based incentive plan
The President & CEO is eligible to participate in the
company’s ongoing long-term share-based incentive
plans for the periods 2023–2025, 2024–2026 and
2025–2027. The potential payment under the incentive
plans shall be pro-rated. His participation in these
plans is presented in the following table.
The President & CEO is eligible for a signing bonus
of 200,000 shares in Suominen, to be paid during
Q3/2026, provided that his employment agreement
is still in force. Possible taxes shall be paid by the
recipient.
Under the Annual Shares Contribution plan as of
2026, the President & CEO is expected to acquire
up to 100,000 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:
- 100,000 matching shares at minimum EUR 20
million comparable EBITDA
- 300,000 shares at target EUR 25 million comparable
EBITDA
- 500,000 shares at maximum EUR 30 million
comparable EBITDA.
The company shall transfer the shares within Q1 of the
following year, subject to a Board decision.
As of the Annual Shares Contribution plan 2027, the
first half of the plan shall be unconditional and the
second half based on performance targets set by the
Board, provided that the President & CEO’s service
in the company is in force at the time of the reward
payments. A proportion of the incentives is to be paid
in cash, intended to cover taxes and tax-related costs
arising from the rewards to the President & CEO.
The President & CEO Tommi Björnman’s
share-based incentive plan
Under the plan, the President & CEO was expected
to own or acquire up to 30,000 shares of Suominen
Corporation at a price formed in public trading on
Nasdaq Helsinki. Suominen was to 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 included 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 was
to be paid partly in shares and partly in cash in three
equal 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 was intended to cover taxes and tax-related
costs arising from the rewards to the President & CEO.
The second vesting period ended in June 2025, and
in total 9,359 shares were transferred to the CEO. The
plan was terminated at the end of June, as Tommi
Björnman’s service in the company ended.
Restricted share unit plan for key employees
The Board of Directors of Suominen Corporation
resolved in December 2025 to establish a new share-
based incentive plan for selected 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 the company and to offer
them a competitive incentive plan based on receiving
the company’s shares.
The plan is intended to be used as a tool in situations
deemed necessary by the Board of Directors, for
example ensuring retention of key talents in the
company, attracting new talent or in other specific
situations determined by the Board of Directors.
The Board of Directors may allocate rewards from
the Restricted Share Unit Plan 2026–2028 during
financial years 2026–2028. The value of the rewards
to be paid on the basis of the plan corresponds to
a maximum total of 200,000 shares of Suominen,
including also the proportion to be paid in cash. The
target group of the plan consists of key employees
selected by the Board, including members of the
Leadership Team and the CEO.
The rewards will be paid by the end of May 2029,
but in any event by a minimum of twelve (12) months
after the determination of the reward opportunity. The
reward is based on a valid employment or director
contract and on the continuity of the employment or
service.
The 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 Board
may impose a shareholding obligation on the shares
delivered as a reward.
Shareholders
At the end of the review period, on December 31,
2025, Suominen Corporation had in total 4,365
shareholders. Suominen is not aware of any
shareholder agreements related to the shareholding
or use of voting rights. Share ownership is presented
in the consolidated financial statements in Note 13.
Related parties’ share ownership is presented in
Note 30 of the consolidated financial statements.
46Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Treasury shares
On December 31, 2025, Suominen Corporation held
486,744 treasury shares.
In accordance with the resolution of the Annual
General Meeting, in total 36,013 shares were
transferred in May to the members of the Board of
Directors as their remuneration payable in shares.
As part of the CEO’s share-based payment plan
vested, in total 9,359 shares were transferred to the
President & CEO Tommi Björnman in June.
Notifications under Chapter 9, Section 5
of the Securities Market Act
During the review period, Suominen received no
notifications under Chapter 9, Section 5 of the
Securities Market Act.
Information pursuant to Decree 1020/2012
by the Ministry of Finance, not presented in
the consolidated financial statements
There are neither restrictions on 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 include
no specific stipulation on altering the Articles of
Association. The Shareholders’ Meeting decides on
share issues and the 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 were terminated due to a
public tender offer. The principal terms and conditions
of the service contract of the President & CEO are
presented in Note 30 of the consolidated financial
statements and in the Remuneration Report 2025 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:
- Jyrki Vainionpää, President & CEO of A. Ahlström Oy,
as a member appointed by Ahlstrom Capital B.V.
- Mikael Etola, CEO of Etola Group Oy, as a member
appointed by Etola Group Oy
- Ville Vuori, Board Professional, as a member
appointed by Oy Etra Invest.
Charles Héaulmé, Chair of Suominen’s Board of
Directors, serves as the fourth member of the
Nomination Board. The shareholders entitled
to appoint members to the Nomination Board
were determined on the basis of the registered
holdings in the company’s shareholders’ register on
September 1, 2025.
In its organizing meeting on October 21, 2025, the
Nomination Board elected Jyrki Vainionpää as the
Chair of the Nomination Board.
Changes in the Suominen
Leadership Team
Minna Rouru started in January 2025 as Chief People &
Communications Officer at Suominen.
Mark Ushpol started in January 2025 as EVP,
Americas business area at Suominen.
Darryl Fournier started in February 2025 as Chief
Operating Officer at Suominen.
Jonni Friman, EVP, Transformation Management
Office, and a member of the Suominen Leadership
Team left the company at the end of July.
On June 30, Suominen announced that the
President & CEO Tommi Björnman would leave
the company and that the Board of Directors of
Suominen had appointed Charles Héaulmé, the Chair
of the Board, as the company’s new President &
CEO. Mr. Héaulmé started on August 11, 2025. Janne
Silonsaari, CFO, acted as interim President & CEO for
the period June 30–August 10, 2025.
Mr. Héaulmé continues to serve as Chair of the
Board until the next Annual General Meeting of
Suominen in 2026. He stepped down from his
position as Chair and member of the Personnel and
Remuneration Committee of the Board of Directors as
of June 30.
Suominen announced in October the appointment
of Francois Guetat as Chief Operating Officer and
member of the Suominen Leadership Team as of
November 2025. Suominen also announced that its
Chief Operating Officer Darryl Fournier would step
down from his role as Chief Operating Officer and
member of the Suominen Leadership Team.
On February 26, 2026, Suominen announced that
Minna Rouru, Chief People & Communications Officer,
47Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
and a member of the Suominen Leadership Team
leaves the company at the latest on August 26, 2026,
to take on a role in another company.
Annual General Meeting
The Annual General Meeting (AGM) of Suominen
Corporation was held on April 25, 2025.
The AGM adopted the financial statements for 2024
and discharged the members of the Board of Directors
and the President & CEO from liability for the financial
year 2024.
The AGM resolved to adopt the Remuneration
Report for the company’s governing bodies for 2024.
The resolution made by the AGM is advisory.
The AGM decided, in accordance with the proposal
of the Board of Directors, that no dividend be paid
based on the adopted balance sheet regarding the
financial year 2024 and that the distributable funds be
left in the company’s unrestricted equity.
The AGM decided, in accordance with the proposal
of the Shareholders’ Nomination Board, that the
remuneration of the Board of Directors remains
unchanged and is as follows: the Chair is paid an
annual fee of EUR 74,000, the Deputy Chair an annual
fee of EUR 45,000 and other Board members an
annual fee of EUR 35,000. The Chair of the Audit
Committee is 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 attended by telephone or other electronic
means. 75% of the annual fee 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 will be seven (7). Andreas Ahlström, Björn
Borgman, Charles Héaulmé, Nina Linander and Laura
Remes were re-elected as members of the Board by
the AGM. Gail Ciccione and Maija Joutsenkoski were
elected as new members of the Board.
Charles Héaulmé was re-elected as the Chair of the
Board of Directors.
Authorised Public Accountants KPMG Oy Ab was
elected as the auditor of the company for the next term
of office in accordance with the Articles of Association.
KPMG Oy Ab informed that Anders Lundin, APA, ASA,
will act as the principally responsible auditor of the
company. The auditor’s fee was resolved to be paid
according to the invoice approved by the company.
Sustainability audit firm KPMG Oy Ab was elected
as the company’s authorized sustainability auditor
for a term that lasts until the end of the company’s
next Annual General Meeting. KPMG Oy Ab has
informed that Anders Lundin, APA, ASA, will act as
the responsible authorized sustainability auditor of
the company. The authorized sustainability auditor’s
fee was resolved to be paid according to the invoice
approved by the company.
Suominen published a stock exchange release on
April 25, 2025, concerning the resolutions of the
Annual General Meeting and the organizing meeting
of the Board of Directors. The stock exchange release
and introductions of the new Board members can be
viewed on Suominen’s website at www.suominen.fi.
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 the Deputy
Chair of the Board.
The Board elected from among its members the
members for the Audit Committee, the Personnel
and Remuneration Committee, and the Strategy
Committee. Nina Linander was re-elected as the
Chair of the Audit Committee, and Andreas Ahlström
and Laura Remes were re-elected as members.
Maija Joutsenkoski was elected as a new member.
Charles Héaulmé was re-elected as the Chair of the
Personnel and Remuneration Committee, and Björn
Borgman was re-elected as a member. Gail Ciccione
was elected as a new member. Laura Remes was
re-elected as the Chair of the Strategy Committee, and
Andreas Ahlström was re-elected as a member. Maija
Joutsenkoski was elected as a new member.
Corporate Governance
Statement and Remuneration
Report
The Corporate Governance Statement 2025 and
Remuneration Report 2025 have been disclosed
separately from this Report by the Board of Directors
at www.suominen.fi. Both are included also in the
company’s Annual Report 2025.
Business risks
and uncertainties
Manufacturing risks
Suominen has production plants in several European
countries, the United States and Brazil. Interruptions
at the plants caused, for example, by machinery
breakdown can cause production losses and delivery
problems. Ongoing maintenance and investments
aiming to extend the lifetime of the assets are an
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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 against 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 direct
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 to be 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
with 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 2025, the Group’s
ten largest customers accounted for 69.5% (69.4%)
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 growing
demand for products made of nonwovens. However,
certain factors, including consumers’ attitude towards
the use of products made even partially of oil-based
raw materials, or their perception of the sustainability
of disposable products in general, might change
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 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 on
Suominen’s business is minor as the company has no
customers or suppliers in Russia, Belarus or Ukraine.
Suominen is mostly affected by the indirect economic
impacts of the war.
Instability in different parts of the world continues to
cause general uncertainty.
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, which focuses on reducing marine
litter. The potential exists for similar regulations to
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expand worldwide. This creates demand for more
sustainable products, and Suominen is well placed to
respond to this increasing demand.
Global political developments could have an adverse
effect on Suominen. For instance, a political decision
that constrains 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 the
USD in the Group’s total foreign exchange position.
Suominen manages its foreign exchange position in
accordance with its hedging policy.
The risks that are characteristic to the South
American region, including significant changes in the
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
be delayed from what was planned, the costs of the
investments may increase from what was expected
or the investments may create fewer 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 were realized, Suominen’s reputation as
well as its 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 Note 3
of the consolidated financial statements.
Suominen is subject to corporate income taxes
in numerous jurisdictions. Significant judgment is
required to determine the total amount of corporate
income tax at Group level. There are many transactions
and calculations that leave room for uncertainty as
to the final amount of the income taxes. Tax risks
relate also to changes in tax rates or tax legislation or
misinterpretations, and the 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 future taxable income.
Suominen performs goodwill impairment testing
annually. In impairment testing, the recoverable
amounts are determined as the value in use, which
comprises the discounted projected future cash flows.
Actual cash flows can 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 forecasted sales prices of
Suominen’s products, production costs, as well as the
discount rates used in testing. Due to the uncertainty
inherent in the future, it is possible that Suominen’s
recoverable amounts will be insufficient to cover the
carrying amounts of assets, particularly goodwill. If
this happens, it will be necessary to recognize an
impairment loss, which, when implemented, will
weaken the result and equity. Goodwill impairment
testing has been described in the consolidated
financial statements.
Business environment
In 2025, Suominen operated in an environment
characterized by continued macroeconomic uncertainty
and geopolitical tensions. The general economic
situation, inflationary pressures, and shifts in global trade
policies influenced market sentiment and purchasing
behavior across regions.
Ongoing geopolitical tensions, including the war in
Ukraine and instabilities in the Middle East, continued to
create uncertainty globally. In addition, developments
related to US trade tariffs contributed to volatility in global
supply chains and temporarily disrupted demand patterns,
particularly during the first half of the year.
Market dynamics during the year were influenced by
excess capacity and changes in global trade flows due to
trade policies.
Oversupply and intensified competition placed pressure
on pricing, especially in Europe, with raw material
prices declining to record low levels. At the same time,
customers increasingly focused on optimizing inventories
and diversifying sourcing to mitigate supply chain risks.
Despite these uncertainties, the nonwovens and
wipes markets continued to demonstrate resilience and
long-term growth potential. Demand for daily consumer
goods is not highly cyclical in nature, and the wipes
market has historically demonstrated stability even in
challenging economic conditions.
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Sustainability
statement
ESRS 2 General disclosures ....................................... 52
Suominen’s EU Taxonomy report
............................... 63
E1 Climate change
.................................................... 67
E2 Pollution
...............................................................75
E3 Water
...................................................................77
E5 Resource use and circular economy
..................... 79
S1 Own workforce
.................................................... 84
G1 Business conduct
................................................ 90
Appendix
.................................................................. 95
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ESRS 2 General
Disclosures
Basis for preparation
General basis for preparation
Suominen publishes its sustainability statement as
part of its Report by the Board of Directors. This
sustainability statement is prepared in accordance with
the Finnish Accounting Act, European Sustainability
Reporting Standards (ESRS) and the EU Taxonomy
regulation.
The reporting period for all presented data is one
calendar year (January 1–December 31, 2025) as with
financial reporting. The statement is compiled for the
whole Suominen Group as with financial reporting.
Suominen’s sustainability reporting is based on
our double materiality assessment (DMA). Suominen
renewed its materiality assessment during 2023–2024
to comply with the requirements of ESRS, and
reviewed the DMA together with subject matter
experts and Suominen Leadership Team members in
2025, resulting in no changes to the double materiality
assessment conducted in 2024. No changes were
made in the existing material impacts, risks, or
opportunities. Further information on the double
materiality process can be found in the Description of
the processes to identify and assess material impacts,
risks and opportunities.
The sustainability statement is extended to include
information on the material impacts, risks and
opportunities connected with Suominen’s direct and
indirect business relationships in the upstream and/or
downstream value chain.
Upstream and downstream value chain information
related to policies, actions and targets has been limited
to information available in-house. Apart from Scope
3 emissions, upstream and downstream value chain
information related to metrics has been omitted.
No classified or sensitive information or information
on intellectual property, know-how or results of
innovation has been omitted from this report.
Specific circumstances
Disclosure requirements with a reference to the
financial statements include the following: E1-5, E1-6
and S1-6. Scope 3 emissions data from the upstream
and downstream value chain includes estimated
data using indirect sources, such as sector averages.
The assumptions made are described in detail under
E1 Climate change. The source of uncertainty is the
availability of data from our upstream and downstream
value chain. Possible changes and corrections to errors
made in the previous reporting period are disclosed
under each topic-specific chapter. No parties other
than the appointed assurance provider have reviewed
or verified the data presented in this report.
Information subject to phase-in under standards E4
(Biodiversity and ecosystems), S1 (Own workforce),
S2 (Workers in the value chain) and S4 (Consumers
and end-users) has been omitted in this statement
on the basis of Suominen Corporation not exceeding
the average number of 750 employees, and the ESRS
phase-in reliefs continuing to apply until fiscal year
2027.
For the topic Own workforce, we have identified the
following material sub-topics for Suominen: working
conditions and equal treatment and opportunities
for all. Despite the phased-in implementation, we
have partially disclosed S1 information under S1 Own
workforce. Brief descriptions of policies, actions,
targets and metrics are reported under S1 Own
workforce. The following metrics are phased in and
have not been disclosed in this report: adequate
wages, non-employees, training hours, work-related ill
health, work-life balance and the gender pay gap.
Material impacts, risks and opportunities related
to Biodiversity and ecosystems, Workers in the value
chain and Consumers and end-users are disclosed
in the Statement of material impacts, risks and
opportunities. A brief description of the relevant
targets, policies, actions and metrics related to
Biodiversity and ecosystems, Workers in the value
chain as well as Consumers and end-users can be
found below.
For the topic Biodiversity and ecosystems, we
have identified the following material sub-topics
for Suominen: direct impact drivers of biodiversity
loss and impacts and dependencies on ecosystems
services. Biodiversity and ecosystems are heavily
connected to our business model, since we are
dependent on wood-based materials. Direct impact
drivers of biodiversity loss are partially included in
our Health & Safety, Environment and Quality (HSEQ)
Policy in relation to climate change, resource use and
pollution. We have not yet defined any biodiversity and
ecosystems related targets, actions or metrics.
For the topic Workers in the value chain, we have
identified the following material sub-topics for
Suominen: working conditions, equal treatment and
opportunities for all and other work-related rights.
We promote responsible business practices in our
supply chain and have a Supplier Code of Conduct in
place. Actions taken to identify, monitor and prevent
potential adverse impacts in our supply chain include
the establishment of a process to assess our raw
material suppliers, which is included as a target in our
Sustainability Agenda for 2025–2030.
For the topic Consumers and end-users, we
have identified the following material sub-topic
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for Suominen: personal safety of consumers and
end-users. Product quality and safety are the key
aspect of our business model and strategy, and they
are included in our HSEQ Policy. In line with our
HSEQ Policy, we take responsibility for the quality
and continuous improvement of our work and
our products, and we strive to achieve our goal of
zero defects. Actions taken to identify, monitor and
prevent potential adverse impacts on consumers
and end-users include the promotion of our
Quality Culture, ensuring compliance with laws and
regulations, continuous improvement and engagement
with suppliers and customers.
Due to the cost-saving measures initiated in the
company, we had to prioritize our activities and
limit planned development efforts. As a result, we
were unable to carry out all planned investments in
sustainability actions and did not progress towards
our sustainability targets as originally intended. It
was not possible to calculate all reference-year
figures, as the Sustainability Agenda covers the period
2025–2030 and several of the related targets and
metrics are newly introduced. Reference-year data
is currently not available for the metrics related to
raw-material supplier assessments, nonwoven waste,
the DEI index, the sustainability training program,
and R&D project indicators. In addition, the following
reference-year data are missing: other disposal
operations for non-hazardous waste, as well as other
recovery operations and other disposal operations for
hazardous waste.
Governance
Governance roles and responsibilities
Suominen’s administrative, management and
supervisory bodies include our Board of Directors
and the Suominen Leadership Team (SLT). Both the
Board and the SLT have members with long-term
experience and expertise in the nonwoven or
fiber-based product industry and of operating in
Suominen’s target markets. The extensive experience
of our Board and SLT members also offers insight
into many sustainability-related topics, such as the
identified material impacts, risks and opportunities.
The Board’s sustainability competence is supported by
members with senior experience in industries where
sustainability, operational excellence and responsible
business practices are integral to the business model.
One member has also held an executive sustainability
role — Vice President, Continuous Improvement and
Sustainability — in a global consumer goods and
personal care company, providing dedicated expertise
in environmental stewardship and sustainability-driven
value creation.
The Nomination Board ensures the Board has the
right mix of knowledge, experience and perspectives
to meet the company’s current and future needs.
Where additional expertise is needed for Board
decision-making, internal or external specialists are
consulted. These practices strengthen the Board’s
ability to oversee Suominen’s sustainability strategy,
targets and long-term transition planning.
The management of impacts, risks and opportunities
is integrated with our internal processes related to
strategy, compliance, reporting and data management.
Our strategy is under the responsibility of the Board
and the SLT, and it is closely connected with our
ambition of minimizing our environmental impacts,
mitigating financial risks and pursuing the financial
opportunities related to sustainable nonwovens and
business practices. Topics related to our material
impacts, risks and opportunities, strategy and
target progression are presented to the Board or
the SLT regularly. The Board and the SLT both have
responsibility related to the oversight of impacts, risks
and opportunities and related issues.
Board of Directors
The highest decision-making body in sustainability
and climate-related matters, covering also risks and
opportunities, is the Board of Directors. 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 had
seven members at the end of 2025, 57% of which are
independent from Suominen. There are no executive
members or representation of employees and other
workers in the Board, except for Charles Héaulmé,
who serves concurrently as Chair of the Board and as
the company’s President & CEO as of August 11, 2025.
The Board’s gender diversity ratio, female to male, was
4:3, 133% in 2025. The Board approves Suominen’s
Sustainability Agenda, including sustainability-related
targets and policies. Progress in sustainability targets
is reported to the Board regularly. Progress reports
are presented by the President & CEO or the Chief
Financial Officer (CFO). The Board regularly reviews
and approves the key company policies related to
Business Conduct.
In addition, sustainability is discussed in the Audit
Committee quarterly and the Audit Committee
receives progress reports on sustainability reporting.
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 majority of 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. The Audit
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Committee reports on its actions to the Board of
Directors.
The Audit Committee reviewed Suominen’s double
materiality assessment and the list of material impacts,
risks and opportunities in May 2024. The approved
impacts, risks and opportunities cover all the material
impacts, risks and opportunities identified in the
double materiality assessment and presented in this
report, as there were no changes identified in the
review in 2025. The Audit Committee also assists
the Board in supervising the company’s corporate
governance and legal and compliance-related matters.
All reports made through the SpeakUp Line are
reported to the Audit Committee.
The expertise of the Board of Directors is ensured
in the recruitment process. When assessing the
composition of the Board, the Shareholders’
Nomination Board considers, among other things,
whether the Board possesses a broad range of
business knowledge. If additional expertise is required,
internal or external experts are brought in.
To ensure sufficient sustainability-related expertise,
the Audit Committee monitors the company’s
reporting capabilities, competence and resources,
and reports to the Board of Directors. Subject matter
specialists are invited to participate in discussions if
required. The Board of Directors may then instruct the
CEO to take necessary actions to improve reporting
capabilities.
Suominen Leadership Team
The Suominen Leadership Team (SLT) consisted of six
members at the end of 2025, chaired by the CEO. The
SLT member diversity metrics are disclosed in S1 Own
workforce. The Sustainability Agenda, related targets
and supporting policies and processes, are owned by
the SLT. The SLT is responsible for the Sustainability
Agenda. The Sustainability function, which in
2025 operated under the CFO, has responsibility
for implementing and reporting the Sustainability
Agenda. Suominen’s operations and support functions
are responsible for implementing the Group-level
sustainability initiatives to meet the targets. The CFO
is responsible for sustainability reporting as well as the
Group’s Enterprise Risk Management process, which
includes sustainability-related risks.
The Group’s Enterprise Risk Management process
is conducted on an annual basis. The work is led by
the CFO, however, involving all SLT members as well
as key business units and functions. In addition, key
members of the SLT were involved in the double
materiality process to identify and rate impacts, risks,
and opportunities in 2024. The overall results were
validated by the whole SLT in 2024 and reviewed by
some of the SLT members in 2025. Sustainability is
on the agenda of the SLT on a regular basis, which
enables effective management of sustainability.
Subject matter experts are invited to participate in
discussions if required. The President & CEO has
ultimate responsibility for sustainability and the
reporting of it to the Board.
The General Counsel is responsible for Legal &
Compliance. The General Counsel reports to the
CEO and updates the CEO and the SLT on legal
and compliance-related topics on a regular basis
as well as brings issues to light when necessary.
The General Counsel gives updates to the Audit
Committee quarterly and to the Board of Directors
as needed on legal and compliance-related matters.
The SLT participates in internal trainings on legal and
compliance-related topics.
Information provided to and
sustainability matters addressed
by Suominen’s administrative,
management and supervisory bodies
During 2025, the Board of Directors, Audit Committee
and Suominen Leadership Team received regular
updates on key sustainability developments and
oversight topics. These included progress updates
on the Sustainability Agenda 2025–2030, including
the climate roadmap for reducing Scope 1, 2 and 3
greenhouse gas emissions in line with the 1.5°C target
of the Paris Agreement. Climate change, along with
the other focus areas in our Sustainability Agenda,
are related to Suominen’s material impacts, risks and
opportunities.
Safety, identified as a material impact, risk and
opportunity for the company, was subject to regular
monitoring by the Board and frequent review in the
CEO calls. In addition, the company’s material impacts,
risks and opportunities were reviewed together with
the Legal function, and plans were initiated to further
develop and integrate corporate risk management
and the double materiality assessment (DMA). As
part of these processes, a climate risk assessment
conducted by an external partner was also reviewed
jointly with Legal and the CFO, ensuring appropriate
governance and alignment with internal control and
risk management frameworks.
The Board also monitored resource use and circular
economy-related topics as raw material efficiency
(RME) was included in both the short- and long-term
incentive plans of managerial positions. During the
year, the Board and the Audit Committee were also
briefed on the status of CSRD reporting as well as
upcoming changes in ESG-related regulation and their
impacts on Suominen.
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Integration of sustainability-related
performance in incentive schemes
Suominen has both short- 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 the achievement of sustainability and
financial results. Members of the Board are not
employees of Suominen and do not participate in any
Suominen incentive scheme or pension arrangement.
Pay-for-performance philosophy is widely followed
at 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 financial performance of the
company.
Raw material efficiency is considered as a
performance benchmark and is included in Suominen’s
remuneration policies. Raw material efficiency (RME)
was included in both the short- and long-term
incentive plans of managerial positions in 2025. The
proportion of variable remuneration dependent on
the RME was 10% for the short-term and 20% for the
long-term incentive plans in 2025.
Suominen has not integrated climate change-related
performance, such as GHG emission reductions, into
its incentive schemes.
Statement on due diligence
We have partially adopted due diligence processes
in our operations. The main aspects are related to
a number of cross-cutting and topical disclosures.
Below is presented a mapping of the core elements of
due diligence in this sustainability statement.
Risk management and internal
controls over sustainability reporting
Suominen does not have a separate risk management
process for sustainability reporting. However,
Suominen identifies and mitigates risks throughout the
year to ensure completeness and conformity of data
and the efficiency of the reporting process. Identified
risks related to sustainability reporting are incorporated
into relevant internal functions and processes
where appropriate, such as policies, principles, risk
management and internal controls. Significant findings
are reported to the CFO and General Counsel, who
then reports the findings to the SLT if necessary.
Increasing reporting requirements from legislation
have been recognized as a risk, which is regularly
followed, and the requirements are being implemented
in various functions at Suominen. Conformity
Core elements of due diligence Sections
Embedding due diligence in governance,
strategy and business model
Strategy; Own workforce and Business conduct: Interaction with strategy and business model
Engaging with affected stakeholders
in all key steps of due diligence
Stakeholder engagement; Employee engagement; SpeakUp Policy; Management of
relationships with suppliers
Identifying and assessing adverse impacts Stakeholder engagement; Policies related to own workforce; Health and safety; SpeakUp
Policy; Management of relationships with suppliers; Prevention and detection of corruption
and bribery
Taking actions to address those adverse
impacts
Employee engagement; Actions and Targets related to own workforce; Health and safety;
Policies and Targets related to business conduct; Management of relationships with suppliers;
Prevention and detection of corruption and bribery; SpeakUp Policy
Tracking the effectiveness of these efforts
and communicating
Employee engagement; Targets related to own workforce; Health and safety; Incidents,
complaints and severe human rights impacts; Targets related to business conduct; Incidents
of corruption or bribery
of data has also been recognized as a risk, since
data is collected at site level. To mitigate this risk,
site-specific data needed for sustainability reporting is
collected at site level and consolidated by Suominen
Group Sustainability function. The conformity and
completeness of the data is reviewed by the Group
Sustainability function. The data collection process
is designed to be uniform to ensure all data from
different sites is collected in the same format and
level of detail. Sustainability data management will
be improved by introducing new software in 2026 to
support data collection.
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Strategy
General strategy
The cornerstones of our strategy are sustainability
and innovation, and we continuously develop our
offerings and operations accordingly. Suominen’s
overall sustainability-related goal and vision is to
be the frontrunner in nonwovens innovation and
sustainability and 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 wiping
materials. We implement our Sustainability Agenda
as an integral part of our strategy. 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. Our target is to use all resources
efficiently and to operate with the smallest possible
impacts on the environment.
Suominen is undertaking an ambitious
transformation to unlock the company’s full potential.
In the second half of 2025, Suominen conducted
a comprehensive analysis across its operations to
identify the greatest opportunities for restoring
performance and strengthening the foundation for
long-term success. We focus on three dimensions: the
right culture (behaviors), the right focus on priorities
(strategy) and the right operating model (organization).
While restoring short-term profitability is the
immediate priority, Suominen will in parallel develop its
long-term strategy and financial targets.
Suominen’s Sustainability Agenda defines and
highlights our sustainability themes and targets. The
Agenda is approved by the Board of Directors, and its
progress in different areas is regularly monitored. The
Board approved the Sustainability Agenda 2025–2030
in 2025. Metrics for the new Agenda have been defined
and the implementation plan will be created in 2026.
The Sustainability Agenda for 2025–2030 has the
same four themes as in the previous agenda which
are people and safety, sustainable nonwovens, low
impact manufacturing and corporate citizenship. We
have set outcome-oriented targets related to these
sustainability themes. The targets are described in
detail respectively under the topic-specific ESRS
disclosures.
Business model and value chain
Suominen manufactures nonwovens as roll goods
for wipes and other applications. Our vision is to
be the frontrunner in nonwovens innovation and
sustainability. Suominen creates value by taking fiber
raw materials and turning them into nonwovens
that our customers convert into both consumer and
professional end products. The end products made
of Suominen’s nonwovens are present in people’s
daily lives worldwide. There have been no significant
changes in our product offering since the last
reporting period.
In accordance with our value creation model, our
inputs can be divided into financial resources, natural
resources, intellectual capabilities, social relationships
and manufacturing resources. Our approach to
gathering, developing and securing these inputs relates
to our vision to be the frontrunner in nonwovens
innovation and sustainability and a trustworthy partner.
We also aim to minimize availability issues by being
close to our key customers and by sourcing most of
our raw materials from a number of major international
suppliers. Our outputs include products and solutions,
waste, emissions and water. Suominen’s nonwovens
create value for our customers and end-users by
offering safe and high-quality wiping, medical and
hygiene products and diverse sustainable alternatives,
including biodegradable, compostable and plastic-free
products and products manufactured using recycled
materials.
Our position in our value chain is in between raw
material suppliers and our customers, who convert our
products into their end-products. Our main actors in
our upstream value chain include our suppliers. The
majority of our raw material suppliers provide fossil-
and/or plant-based raw materials for production. Our
main actors in our downstream value chain include
transportation companies, our customers, product
end-users and waste operators.
Suominen has two main market areas, EMEA and
the Americas, and a total of over 650 employees. The
number of employees by geographical area is reported
under S1 Own workforce.
Stakeholder engagement
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. The
purpose of our stakeholder engagement is to provide
important insights into the expectations and concerns
our stakeholders have and help 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. Continuous
interaction with our stakeholders is also a key aspect
in Suominen’s approach to sustainability. The views
and interests of stakeholders regarding material
sustainability-related impacts are presented to
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management and the Board of Directors to serve as a
basis for decision-making.
Stakeholder groups and their expectations, along
with the engagement channels in use and their effect
on Suominen’s strategy and business models are
presented in the following table.
Stakeholder group Expectations and interests Meeting stakeholder expectations / Outcome of engagement Engagement types/channels
Employees - Safe working environment
- Compensation and benefits
- Development opportunities
- Equal treatment
- 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
- 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 in accordance with Finnish legislation, 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 CSRD
- Code of Conduct
- General Meetings of shareholders
- Quarterly and annual reporting
- Stock exchange and press releases
- Shareholder and analyst events
- Website and other digital channels
- Stakeholder survey
Political decision-
makers, public
authorities, NGOs
- Regulatory compliance
- Responsible supply chain
- Responsible operations
- Compliance with laws and regulations
- Whistleblowing channel
- Sustainability reporting in accordance with CSRD
- 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
- Stakeholder survey
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Statement of material impacts,
risks and opportunities
Suominen has identified material impacts, risks and
opportunities related to the following sustainability
topics: climate change, pollution, water, biodiversity
and ecosystems, resource use and circular economy,
own workforce, workers in the value chain, consumers
and end-users and business conduct. All identified
material impacts, risks and opportunities are covered
by ESRS Disclosure Requirements, and no additional
entity-specific sustainability matters were identified to
be material. As an entity-specific disclosure, we have
disclosed our Business conduct-related targets.
Suominen has identified material negative actual
or potential impacts related to the environment and
people. Our most severe negative impacts are related
to our emissions, water consumption, resource use
intensity, the single-use nature of the end-products
made from our products, our contribution to drivers of
biodiversity loss, and potential microplastic pollution
from disposal of our plastic-based products. We
also identified significant positive impacts that our
operations have on the environment and people.
Most of these positive impacts are related to the
sustainability of our product portfolio and our existing
policies and processes.
Our most significant financial risks related to
sustainability issues originate from the changing
regulatory landscape and the increasing expectations
of our customers and investors. Since sustainability is a
cornerstone of Suominen’s strategy, we also identified
significant opportunities that the sustainability
transition can offer us.
No material risks or opportunities were identified for
which there is a significant risk of a material adjustment
within the next annual reporting period to the carrying
amounts of assets and liabilities reported in the related
financial statements.
The impacts, risks and opportunities assessed to
be material for Suominen are presented under the
topic-specific ESRS disclosures. Impacts, risks and
opportunities related to Biodiversity and ecosystems,
Workers in the value chain and Consumers and
end-users, which are subject to phase-in and do not
have topic-specific chapters, are presented in the
following table.
Phased-in impacts, risks and opportunities
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Biodiversity and
ecosystems
- Dependency on plant-
based raw materials
- Some materials
sourced from high-risk
countries
- Contribution to
climate change,
natural resource
use, and indirectly to
land-use change and
deforestation
- Moving away from
fossil-based raw
materials to plant-
based raw materials
- Products made of
responsibly sourced
raw materials in
portfolio
- Use of FSC
®
-, PEFC-
and SFI
®
certified
materials
- Reputational risks
- Increasing
expectations in the
value chain
- Dependency on plant-
based raw materials
- Future legislation
related to plant-based
raw materials
Workers in the
value chain
- Possible violations
of legislation and
Supplier Code of
Conduct in the supply
chain
- Mandatory Supplier
Code of Conduct in
place promoting good
practices
- EcoVadis rating system
in place
- Employee and
contractor safety
increasing profitability
and good reputation
Consumers and
end-users
- Possible safety
shortcomings of
medical and hygiene
products
- Safety of medical and
hygiene product
- Product quality and
safety problems
- Reputational risks
- Product quality and
safety as a selling point
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Changes to material impacts,
risks and opportunities
Suominen conducted its double materiality assessment
(DMA) in 2024. The DMA was reviewed in 2025. No
major changes were identified during the reporting
period that would justify updating the DMA. No
changes were identified to the existing DMA. No
changes were identified to the existing impacts, risks
and opportunities (IROs) and no new IROs were
identified. In addition, no new stakeholders that
should be engaged with were identified. A new double
materiality assessment will be conducted in 2026.
Statement of interaction with strategy and
business model
We expect the sustainability transition and our material
impacts, risks and opportunities to have a significant
effect on our business model, value chain, strategy and
decision making. Our strategy is closely connected
with our ambition of minimizing our environmental
impacts, mitigating financial risks and pursuing
the financial opportunities related to sustainable
nonwovens and business practices. As a response
to the effect that these material impacts, risks and
opportunities can have on Suominen and our value
chain, we began the work to update our Sustainability
Agenda in 2024. The Sustainability Agenda will be
incorporated into our corporate strategy work in 2026.
Value chain mapping was carried out in 2024, and
we will continue analyzing the results and utilizing
them in our raw material sourcing practices and
renewing the sustainability due diligence process
further in 2026.
More detailed information regarding the interaction
of material impacts, risks and opportunities with our
strategy and business model, and where in our value
chain they are concentrated, is presented under the
topic-specific ESRS disclosures. A brief description
of the interaction of material impacts, risks and
opportunities with our strategy and business related
to Biodiversity and ecosystems, Workers in the value
chain and Consumers and end-users, which are
subject to phase-in and do not have topic-specific
chapters, is disclosed under Basis for preparation.
Resilience analysis
The resilience of Suominen’s strategy and business
model in relation to climate change was assessed
through a resilience analysis conducted in 2025. The
analysis covered all Suominen production sites and
included the entire value chain, comprising upstream
activities, own operations, and downstream activities.
The resilience analysis was based on Suominen’s
double materiality assessment and incorporated a
more detailed climate risk assessment as well as a
scenario analysis. The risk likelihood and vulnerability,
and our resilience were assessed for the years 2025,
2030 and 2050.
The climate risk assessment revealed seven
physical and six transition risks relevant to Suominen.
For the assessment of physical risks, a worst-case
climate scenario (SSP5-8.5) was applied to ensure
preparedness for the most severe potential impacts.
Transition risks were assessed using a best-case
scenario (SSP1-2.6) to evaluate the implications of
more ambitious sustainability policies and evolving
consumer preferences. Suominen’s resilience to
the risks and opportunities was then analyzed. More
detailed information on the results of the analysis is
presented under section E1 Climate Change. We will
define concrete actions to strengthen resilience later,
together with the new company strategy, including the
adoption of potential new technologies and their role
in achieving our greenhouse gas emission reduction
targets. The results of the climate risk assessment
will be incorporated into the new double materiality
assessment in 2026.
Impacts, risks and opportunities
Description of the processes to
identify and assess material impacts,
risks and opportunities
General process
The process of identifying and assessing material
impacts, risks and opportunities through a double
materiality assessment followed the requirements
of the European Sustainability Reporting Standards.
The double materiality assessment was carried out at
the beginning of 2024 with an external partner. The
scope of the double materiality assessment included
all Suominen’s operations and geographies and our
key business relationships within our value chain. The
double materiality assessment was internally reviewed
together with subject matter experts and Suominen
Leadership Team members in 2025, resulting in
no changes in the double materiality assessment
conducted in 2024. No changes were made in the
existing material impacts, risks, or opportunities. Below
is a detailed description of how material impacts,
risks and opportunities for Suominen were identified
and assessed.
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Stakeholder engagement
In 2024, the key first step of the double materiality
assessment process was to identify our affected
stakeholders and users of Suominen’s sustainability
statements to gain understanding of their views on
Suominen’s impacts, risks and opportunities. The
identification process included mapping of our value
chain, which provided valuable information on our key
stakeholders both upstream and downstream of our
value chain. The following stakeholder groups were
identified as key stakeholders to be engaged during
the process: our own employees and management
team, our customers, end-users of our products,
shareholders and suppliers.
The engagement methods included an online survey
sent to our own employees and selected customers
and suppliers, a management team workshop, and
interviews with a customer, a shareholder and two
suppliers. End-users of our products could not be
directly reached during the engagement, but the
impacts affecting them were discussed internally and
with our customers.
Impact, risk and opportunity identification
In 2024, Suominen conducted a double materiality
assessment together with an external partner.
Background materials covered internal documentation,
such as HR and health and safety data, Scope 3
information, risk assessment materials, governance
documents including the Code of Conduct, Supplier
Code of Conduct and Speak Up Policy, as well as raw
material supplier information and earlier stakeholder
survey results. External data sources were also used.
Water scarcity at Suominen’s sites was assessed using
the WRI Water Risk Atlas, which identified one facility
in a high-risk area, and biodiversity sensitivity was
screened using the Integrated Biodiversity Assessment
Tool (IBAT), and in 2025 using the World Wildlife Fund
(WWF) Biodiversity Risk Filter. Insights from internal
subject-matter experts and key stakeholders were used
to compile a list of potentially material impacts, risks and
opportunities. The identification of impacts, risks and
opportunities was carried out based on the sustainability
matters listed in ESRS 1 AR 16.
No sector-specific sustainability matters were
identified. The list included actual and potential
positive and negative impacts in which we are involved
through our own activities or because of our business
relationships. Financial risks and opportunities were
identified in connection with impacts, dependencies
and other external drivers.
Impact, risk and opportunity prioritization
and materiality scoring
After potentially material impacts, risks and
opportunities were identified, they were prioritized
to assess the preliminary materiality of different
sustainability matters. The prioritization was based
on the stakeholder engagement and our own views
on materiality. The final materiality was assessed by
carrying out materiality scoring. The materiality of
negative impacts was assessed based on their severity
(considering scope, scale and irremediability) and of
positive impacts based on their scope and scale. For
potential impacts, the likelihood was also assessed.
The materiality of risks and opportunities was assessed
based on their magnitude and likelihood.
The scale, scope, irremediability, likelihood and
magnitude were assessed on a 1 to 5 qualitative
scale, which were then used to calculate the overall
materiality score for each impact, risk and opportunity.
The magnitude and likelihood criteria were based on
our existing Enterprise Risk Management processes
and thresholds. The scale, scope and irremediability
criteria were developed for the purpose of the double
materiality assessment. The materiality of sustainability
topics and sub-topics were determined by the highest
score within that topic or sub-topic. This approach
was chosen to ensure that no topics or sub-topics
with material impacts, risks or opportunities were
considered as immaterial. The important, significant
and critical materiality levels were deemed as material,
while the informative and minimal materiality levels
were considered as immaterial. The double materiality
assessment results were reviewed by the Audit
Committee and validated by the entire Suominen
Leadership Team.
Only sustainability-related risks were evaluated in the
double materiality assessment. Sustainability risks will
be taken into account as part of Suominen’s overall
Enterprise Risk Management processes. The process
to identify, assess and manage opportunities is directly
linked to our strategy development and decision-
making.
Topic-specific processes
Identifying and assessing material
impacts, risks, and opportunities related
to climate change
To identify all impacts, risks and opportunities related
to climate change, Suominen’s business activities and
upstream and downstream value chains were analyzed.
Suominen’s climate-related impacts were assessed
on the basis of the results of the 2022 greenhouse
gas emissions calculations. Climate-related physical
and transition risks in Suominen’s value chain were
preliminarily screened and analyzed during the double
materiality assessment based on our expertise and the
knowledge of our stakeholders.
In 2025, Suominen began developing its climate
change roadmap and transition plan, identifying key
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hot spots across its operations. For Scope 1 and 2, the
main focus will be on enhancing energy efficiency
and transitioning to fossil-free electricity. For Scope 3,
the main emission source is purchased raw materials.
Therefore, Suominen will focus on improving raw
material efficiency, evaluating its product portfolio
and potential investments, and strengthening supplier
engagement activities.
Suominen’s climate transition plan will be aligned
with the new company strategy. A more detailed
climate transition plan will be disclosed once the new
strategy has been adopted by the company. Current
climate-related actions focus on adaptation and risk
management measures to enhance resilience and
mitigate identified physical and transition risks. The
resilience analysis is described in more detail in the
ESRS 2 section on Resilience analysis. The results of
the climate risk assessment will be integrated into the
double materiality assessment in 2026.
Identifying and assessing material impacts,
risks, and opportunities related to pollution
To identify all impacts, risks and opportunities related
to pollution, Suominen’s business activities and
upstream and downstream value chains were screened
and analyzed. Impacts, risks and opportunities were
identified based on our expertise and the knowledge
of our stakeholders. No consultations with affected
communities were carried out.
Identifying and assessing material impacts,
risks, and opportunities related to water and
marine resources
To identify all impacts, risks and opportunities related
to water and marine resources, Suominen’s business
activities and upstream and downstream value chains
were analyzed. Impacts, risks and opportunities were
identified based on our expertise and the knowledge of
our stakeholders.
Suominen has evaluated the scarcity of water at our
sites by using the World Resources Institute’s (WRI)
Water Risk Atlas. One of our production sites, Alicante,
is in a high-risk area where water can be considered
a scarce resource. No consultations with affected
communities were carried out.
Identifying and assessing material
impacts, risks, and opportunities related to
biodiversity and ecosystems
To identify all impacts, risks and opportunities related
to biodiversity and ecosystems, Suominen’s business
activities and upstream and downstream value chains
were analyzed. While fossil-based fiber supply chains
were also identified to have biodiversity impacts, due
to the nature of wood-based raw materials, a special
focus was given to our wood-based fiber supply
chains when assessing biodiversity-related impacts.
We assessed the origin of our wood-based materials
and identified high-risk countries. Impacts, risks and
opportunities were identified on the basis of our
expertise and the knowledge of our stakeholders.
Risk identification included assessment of our
dependencies on biodiversity and ecosystems and
their services. The double materiality assessment
did not include a separate assessment of transition,
physical or systemic risks. No consultations with
affected communities were carried out.
We screened our sites for biodiversity-sensitive areas
using the Integrated Biodiversity Assessment Tool
(IBAT) data map in 2024, and concluded that none of
our sites are located in or near a biodiversity-sensitive
area. Therefore, we concluded that it is not necessary
to implement biodiversity mitigation measures at
our sites. In 2025, we used the World Wildlife Fund
(WWF) Biodiversity Risk Filter due to access issues with
IBAT. The WWF Risk Filter is not as precise in terms of
locations and therefore could not display the exact
locations of our sites. The screening indicated that one
of the sites, Alicante, may be located within a broader
biodiversity-sensitive area.
Identifying and assessing material impacts,
risks, and opportunities related to resource
use and circular economy
To identify all impacts, risks and opportunities related
to resource use and circular economy, Suominen’s
business activities and upstream and downstream
value chains were screened and analyzed. The
screening was conducted qualitatively using
information on our inputs and outputs, including
the geographical source of procured raw materials,
and the views of our stakeholders. Impacts, risks and
opportunities were identified based on the screening
and Suominen’s expertise. No consultations with
affected communities were carried out.
Identifying and assessing material
impacts, risks, and opportunities related
to business conduct
To identify all impacts, risks and opportunities
related to business conduct, Suominen’s business
activities and upstream and downstream value
chains were screened and analyzed. Impacts, risks
and opportunities were identified on the basis of our
expertise and the views of our stakeholders. The scope
of the analysis included all our geographical locations
and activities, including our relationships with our
key stakeholders, such as suppliers, customers and
shareholders.
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Results of the double materiality assessment
ESRS Sustainability topics Impact materiality level Financial materiality level
Material topics
E1 Climate change Critical Critical
E2 Pollution Critical Important
E3 Water and marine resources Critical Important
E4 Biodiversity and ecosystems Critical Significant
E5 Resource use and circular economy Critical Critical
S1 Own workforce Significant Critical
S2 Workers in the value chain Significant Important
S4 Consumers and end-users Critical Critical
G1 Business conduct Significant Significant
Immaterial topic
S3 Affected communities Informative Minimal
The material topics will be reviewed annually to assess
their topicality and validity. The double materiality
assessment will be conducted according to the
significance of changes in the organization or in
the value chain (such as changes in geographies,
operations, resources, products and/or any other
changes affecting our material impacts, risks or
opportunities).
Immaterial sustainability topics
The sustainability topic Affected communities was
assessed to be immaterial for us. Potential negative
and positive impacts and financial risks related to raw
material sourcing and its effects on local communities
in our value chain were identified during the double
materiality assessment. However, since we have
sustainable supply chain practices (described in
G1 Business conduct) in place, these impacts and risks
were not assessed to be material, and the likelihood
of the potential negative impacts and related financial
risks were assessed to be very unlikely. We continue
to monitor our impacts on affected communities by
including the topic in future revisions of the double
materiality assessment.
Determining disclosures
The material information to be disclosed was
determined based on the material impacts, risks and
opportunities identified and assessed during the
double materiality assessment. When determining the
disclosure of information on metrics, the materiality of
related impacts, risks and opportunities was reviewed.
Based on this review, the materiality of Disclosure
Requirements (DR) and further Data Points (DP)
were assessed. If the DR and DP were assessed to be
material, the information was disclosed. The disclosure
determination process followed the workflow
presented in ESRS 1 Appendix E. Content index of
disclosure requirements as well as Table of all the
datapoints deriving from other EU legislation can be
found at the end of this Sustainability statement.
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Suominen’s EU Taxonomy report
Introduction
The EU Taxonomy for sustainable activities 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 climate change adaptation.
This includes sectors such as energy, forestry,
manufacturing, transportation, and construction.
In 2025, 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 all six environmental objectives. In addition,
EU Taxonomy reporting is subject to mandatory limited
assurance.
At the beginning of 2026, the European Commission
approved new Delegated Regulation (EU) 2026/73
which introduces certain simplification and changes to
EU Taxonomy reporting, including updated reporting
tables and 10% materiality thresholds for financial KPIs.
Non-financial companies could choose to continue
using the earlier reporting rules or apply the new
changes for their FY2025 EU Taxonomy reporting.
Suominen has chosen to report according to the new
rules introduced in Delegated Regulation 2026/73.
Eligible economic activities
Suominen’s business consists solely of manufacturing
and selling nonwovens, for which no technical
screening criteria currently exist in the EU Taxonomy.
As a result, 100% of Suominen’s net sales and the
majority of its CapEx (90 %) are non-eligible.
The OpEx denominator was 29 M€, representing
7% of the company’s total OpEx. Suominen assessed
its Taxonomy-eligible operating expenditure in
accordance with the Article 8 Delegated Act
and concluded that the share of OpEx related to
Taxonomy-eligible or aligned activities is immaterial
relative to the total operating expenditure and
Suominen’s core business. Therefore, Suominen
applies the OpEx exemption and reports a zero OpEx
numerator. Further justification is provided in the
Contextual Information section.
Suominen’s EU Taxonomy-eligible activities in
2025 were mainly capital expenditure related to the
renovation of existing buildings (7.2) which relates to
the Climate Change Mitigation objective. Other CapEx
costs (total 2% of eligible CapEx) were allocated in
the “Not assessed activities considered non-material”
category. This portion includes smaller investments
in energy efficiency improvements, close to market
R&D activities, upgrades to wastewater and freshwater
systems, lease or investment costs related to company
vehicles and acquisition and ownership of buildings.
Suominen has reassessed the Taxonomy eligibility
of the costs related to electric forklifts. After a detailed
evaluation, the company has decided to report the
associated capital and operating expenses as non
eligible, contrary to previous years. This clarification
was made because electric forklifts are not explicitly
included in the economic activities defined in the EU
Taxonomy Regulation and its related delegated acts,
even though they support the climate objectives set
out in the regulation. In addition, it was also decided
to report wastewater treatment-related operational
and capital expenditures as non-eligible. This change
was done for clarity as the inclusion of industrial waste
water treatment-related costs under 5.3 activity is not
unambiguous.
Suominen annually reviews its operations and
identifies eligible activities for each site based on
the activity descriptions on Climate Delegated
Act 2021/2139 and its Annexes as well as the later
amendments.
Aligned economic activities
The alignment of the eligible activities with the
technical screening criteria for substantial contribution,
DNSH and minimum safeguards was evaluated. In
2025, none of the identified eligible activities fully met
all the criteria and therefore no activities were reported
as Taxonomy-aligned. During 2025, Suominen
also conducted a climate risk assessment for all its
operating sites.
Each Suominen site is responsible for assessing
the alignment of its eligible activities. A web-based
tool supports the assessment process, while Group
functions provide common working guidelines and
definitions. All site-level valuations and the resulting
Taxonomy figures are reviewed and validated at
Group level.
The assessment of alignment was conducted in
accordance with the technical screening criteria set
out in Delegated Regulation (EU) 2021/2139 on climate
mitigation and adaptation, including its amendments
introduced by Delegated Regulation (EU) 2023/2485.
Compliance with Article 3 of Regulation (EU) 2020/852
and the relevant DNSH and Minimum Safeguards
requirements was also evaluated. KPI reporting
follows the requirements of Delegated Regulation
(EU) 2021/2178 (Article 8) as amended, and the
updated reporting framework introduced by Delegated
Regulation (EU) 2026/73.
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Contextual information
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 2025 2024
Increases in property, plant
and equipment 26,130 15,895
Increases in intangible
assets 160 109
Not internally
generated
Increases in right-of use
assets 1,195 2,580
Total 27,483 18,584
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.
Under Article 8 of the EU Taxonomy Disclosures
Delegated Act (section 1.1.3.2), companies may
exempt the OpEx KPI from disclosure when operating
expenditure is not material to the business model. In
2025, the OpEx KPI denominator (total OpEx in scope
for the EU Taxonomy) is 29 M€, representing 7% of
Suominen’s total operating costs of 421 M€. Given this
immateriality and because Suominen’s core business,
the manufacturing and sale of nonwovens, is not an
EU Taxonomy-eligible activity, the company will apply
the OpEx exemption for the 2025 KPI calculation.
Accordingly, the eligible OpEx (numerator) for the
EU Taxonomy OpEx KPI is zero, and the OpEx KPI is
reported as 0% for 2025.
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 a third party to whom
activities are outsourced that are necessary to ensure
the continued and effective functioning of our assets.
To ensure that CapEx and OpEx are included only in
one economic activity (to avoid double counting), the
total allocated expenditure is reconciled with the total
unallocated expenditure.
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Financial year (2025) Breakdown by environmental objectives of Taxonomy-aligned activities
KPI Total
Proportion
of
Taxonomy-
eligible
activities
Taxonomy-
aligned
activities
Proportion of
Taxonomy-
aligned
activities
Climate
Change
Mitigation
Climate
Change
Adaptation Water
Circular
Economy Pollution Biodiversity
Proportion
of
enabling
activities
Proportion
of
transitional
activities
Not assessed
activities
considered
non-material
Taxonomy-
aligned
activities in
previous
financial year
(N-1)
Proportion of
Taxonomy-
aligned
activities
in previous
financial year
(N-1)
1,000 € % 1,000 € % % % % % % % % % % € %
Turnover 412,433 0% 0 0% 0% 0% 0% 0% 0% 0 0%
CapEx 27,483 8% 0 0% 0% 0% 0% 0% 2% 0 0%
OpEx 29,189 0 0%
65Suominen Annual Report 2025
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Reported KPI (CapEx)
Financial year (2025) Environmental objective of Taxonomy-aligned activities
Economic Activities Code
Taxonomy-
eligible KPI
(Proportion
of Taxonomy
eligible
CapEx)
Taxonomy-
aligned KPI
(monetary
value of
CapEx)
Taxonomy-
aligned KPI
(Proportion
of
Taxonomy-
aligned
CapEx)
Climate
Change
Mitigation
Climate
Change
Adaptation Water
Circular
Economy Pollution Biodiversity
Enabling
activity
Transitional
activity
Proportion of
Taxonomy-
aligned in
Taxonomy-
eligible
% 1,000 € % % % % % % %
(E where
applicable)
(T where
applicable) %
Renovation of existing buildings CCM7.2. 8% 0 0% 0% 0% 0%
Sum of alignment per objective 0% 0%
Total KPI (CapEx ) 8% 0 0% 0% 0% 0% 0% 0%
66Suominen Annual Report 2025
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E1 Climate change
Our material impacts, risks and opportunities related to climate change
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Climate change - Scope 1, 2 & 3
greenhouse gas
emissions
- High energy and
fuel consumption in
operations
- Majority of purchased
electricity from non-
renewable sources
- Sustainable products
in portfolio
- Raising awareness in
our value chain
- Solar panels at Alicante
site generating
renewable energy
- Increasing regulatory
requirements
- Increasing
expectations in value
chain
- Investments in
production lines and
supply chains
- Supply chain
disruptions due to
extreme weather
events
- Sites impacted by
extreme weather
events
- Increasing energy
prices
- Increasing demand
in products with low
carbon footprint
- Increasing funding and
support for sustainable
products
- Access to inexpensive
fossil-free energy
- Increasing energy
efficiency
- Nearshoring and
reshoring as an
adaptation measure
Interaction with strategy and
business model
The cornerstones of our strategy are sustainability and
innovation, and we continuously develop our offerings
and operations accordingly. Sustainability is important
also to our customers and other stakeholders, as the
markets are rapidly shifting towards more sustainable
alternatives. Suominen is committed to reducing the
greenhouse gases emitted due to our operations by
improving energy efficiency and finding alternative
low-carbon energy sources. We are promoting the
development of sustainable products by calculating
the carbon footprint of our products and developing
solutions with a smaller climate impact.
Material climate-related negative impacts from
Suominen’s own activities include Scope 1 and 2
emissions, energy and fuel consumption and the
current energy mix. Comparably, material positive
impacts include sustainable products in Suominen’s
portfolio and solar panels at our Alicante site in
Spain. Material impacts Suominen is involved with
through business relationships include the negative
impact of Scope 3 emissions from our upstream and
downstream value chain and the positive impact of
raising climate awareness.
Greenhouse gas emissions contribute to global
warming, which negatively affects people and the
environment in a variety of ways. Our energy use
contributes to our greenhouse gas emissions. Our
positive impacts, such as sustainable products and
solar panels mitigate these negative impacts and
climate change. We also strive to influence our
stakeholders and support climate change mitigation
by raising awareness throughout our value chain. All
our material impacts can materialize within a short
time horizon.
Material climate-related risks for Suominen’s own
activities include sustainability-related investment
needs, increasing energy prices, increases in water
stress and drought conditions, and impacts of
extreme weather events on our sites. Risks Suominen
is involved with through business relationships
in the value chain include increasing regulatory
requirements, climate-related supply chain disruptions,
and reputational risks linked to societal concerns
regarding single-use products.
Our efforts towards a more sustainable portfolio
and climate change mitigation can offer financial
opportunities for Suominen. Opportunities arise in our
upstream value chain, through increasing funding and
access to clean energy, or in our downstream value
chain, through increasing demand for low carbon
footprint products from our customers. We can create
opportunities also through our own activities by
increasing the energy efficiency of our operations.
67Suominen Annual Report 2025
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One of the four themes of our Sustainability Agenda
for 2025–2030, low impact manufacturing, considers
the impact we have on climate. We are committed to
reducing Scope 1, 2 and 3 greenhouse gas emissions
with the goal of limiting global warming to 1.5°C in
line with the Paris Agreement. We continuously strive
to decrease environmental impacts of our operations
through energy efficiency, sustainable practices, and
innovation.
Climate-related risks and resilience
Climate-related risks identified in the double
materiality assessment include both transition and
physical risks. Transition risks include increasing
regulatory requirements, increasing customer
expectations, new investment needs and increasing
energy prices. Physical climate risks include supply
chain disruptions and site damage due to extreme
weather events.
The resilience of Suominen’s strategy and business
model in relation to climate change was assessed
through a resilience analysis conducted in 2025. The
analysis covered all Suominen production sites and
included the entire value chain, comprising upstream
activities, own operations, and downstream activities.
The resilience analysis was based on Suominen’s
double materiality assessment and incorporated a
more detailed climate risk assessment as well as a
scenario analysis.
During the climate risk assessment, out of 30
potential risks, seven physical and six transition risks
were prioritized for further assessment. The excluded
risks included certain physical risks related to extreme
weather events and gradual climate changes, such as
flooding, sea level rise, soil degradation, landslides,
and changes in temperature and humidity, as well as
transition risks related to changes in the availability
and pricing of certain polymers, reputational
considerations, technological developments, waste
regulation, transportation decarbonization, and
evolving procurement criteria. The risks were assessed
as having a lower potential impact on Suominen’s
operations, value chain, and the resilience of our
strategy and business model compared to the material
risks selected for further analysis.
The risk likelihood and vulnerability, and our
resilience, were assessed for the years 2025, 2030
and 2050. The vulnerability for each risk was assessed
qualitatively on a scale of 1 to 5, from ‘trivial’ to
‘catastrophic’. For the assessment of physical risks,
a worst-case climate scenario (SSP5-8.5) was
applied to ensure preparedness for the most severe
potential impacts. Transition risks were assessed
using a best-case scenario (SSP1-2.6) to evaluate the
implications of more ambitious sustainability policies
and evolving consumer preferences. The likelihood
of the risk scenarios was assessed on a scale of 1 to 5,
from ‘improbable’ to ‘actual’. A resilience assessment
was then conducted based on the scenarios and
Suominen’s existing actions to identify the current level
of resilience.
The most impactful physical risks relate to heatwaves
and their impact on operational cooling, increasing
water stress, and the potential impact on the supply
chain from wildfires. While the analysis revealed
that Suominen’s operations are resilient to many
physical risks in the short term, the impact of all
seven risks is estimated to increase across all sites
by 2050. For transition risks, the most impactful risks
relate to stricter due diligence for the supply chain,
the development of regulations around single-use
plastics, and the market evolution for bio-based fibers.
The scenario assessment revealed that the most
widespread impacts are expected toward and after
the year 2030, whereas some risk levels decrease
toward mid-century. We will define concrete actions
to strengthen resilience later, together with the new
company strategy. Additionally, two opportunities were
identified. Stricter climate regulation and changes in
customer preferences favoring Suominen’s product
lines were considered significant opportunities for
Suominen, due to our already ongoing low-carbon
transition and investments in more sustainable
products. While changes in customer preferences
were considered a risk during the double materiality
analysis, the resilience analysis concluded that it can
also be an opportunity.
Transition plan for climate change mitigation
At present, the company does not have a formal
transition plan aligned with ESRS E1-1 requirements.
In 2025, Suominen began developing its climate
change roadmap and transition plan, identifying key
hot spots across its operations. For Scope 1 and 2,
the focus will be on enhancing energy efficiency and
transitioning to fossil-free electricity. For Scope 3,
the main emission source is purchased raw materials.
Therefore, Suominen will focus on improving raw
material efficiency, evaluating its product portfolio
and potential investments, and strengthening supplier
engagement activities. Suominen’s climate transition
plan will be aligned with the new company strategy.
More detailed reporting on the climate transition
plan will be provided after the new strategy has been
adopted by the company.
68Suominen Annual Report 2025
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Policies related to climate change
Health, Safety, Environment and Quality
(HSEQ) Policy
Climate change is included under Suominen Group
HSEQ Policy. The purpose of the Policy is to further
define Suominen’s commitment to Health & Safety,
Environment and Quality (HSEQ) and to establish
harmonized HSEQ principles for all Suominen sites.
The Policy is applicable to all Suominen Group
companies, sites and employees. We also commit to
respecting the International Chamber of Commerce’s
(ICC) principles of sustainable development in our
HSEQ Policy.
All our sites’ environmental management systems
are certified according to the ISO 14001 standard.
Our production sites in Alicante (Spain), Cressa (Italy),
Green Bay (USA), 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. The Director of HSEQ & Continuous
Improvement of Suominen is accountable for the
implementation of the HSEQ Policy.
Suominen is committed to continuously improving
our production efficiency and the efficient utilization of
natural resources, and we strive to reduce the climate
impacts caused by our operations. The HSEQ Policy
addresses climate change mitigation, energy efficiency
and renewable energy deployment.
Suominen has no specific climate change adaptation
policy in place, but it will be developed based on the
outcomes of its resilience analysis. Climate change
adaptation is supported through our HSEQ Policy
(health & safety) and risk management processes.
Suominen manages climate-related risks with
appropriate precautions, business continuity plans
and insurances. As an example, risks relating to the
continuity of raw material supply are managed by
working with multiple international suppliers, and risks
relating to the company’s own manufacturing facilities
are reduced, for example, by Suominen’s geographical
diversity.
Actions and resources related to
climate change
Use of renewable energy
As part of our actions to reduce greenhouse gas
emissions, all our European sites have shifted entirely
to fossil-free electricity since 2021. Our Paulínia site
in Brazil shifted to fossil-free electricity in 2023 and
our Bethune site in the United States partially shifted
in 2024. This shift has had a remarkable impact on
the reduction of our Scope 2 emissions. Suominen is
examining similar opportunities for its other sites in
North America. We also have solar panels in Alicante,
Spain, producing renewable electricity for the site.
With the electricity produced by the solar panels,
we are able to cover 10% of the production plant’s
total energy consumption. Suominen is evaluating
opportunities for additional solar panel investments.
Suominen has also signed a long-term contract for
an electric boiler for steam generation at our Nakkila
site in Finland in 2024, which was implemented in fall
2025. The electric boiler is expected to reduce the use
of wood chips at the Nakkila site. The impact of the
electric boiler on the Nakkila site’s biogenic Scope 2
greenhouse gas emissions will be evaluated in more
detail as the project proceeds. These investments do
not qualify as financially significant.
Energy efficiency
No significant energy efficiency-related actions to
prevent, mitigate, or remediate impacts or to address
risks have been taken in 2025 due to our focus on
higher-priority initiatives. Suominen continues to
monitor our energy consumption and assess the need
for any energy-related actions.
Suominen has identified one potential medium-term
investment that would significantly improve the energy
efficiency of production in our value chain. No specific
capital expenditures or other financial resources have
yet been allocated in relation to the investment.
Targets related to climate change
Our climate change mitigation target is set to reduce
our GHG emissions in line with the Paris Agreement,
with the aim of limiting global warming to 1.5°C above
pre-industrial levels. Decreasing GHG emissions is
crucial for minimizing the risks and impacts of climate
change, such as extreme weather events, rising sea
levels, and the loss of biodiversity. By committing to
1.5°C science-based GHG reduction targets, Suominen
strengthens its position to lead in sustainable
nonwovens and to meet customer expectations.
Our emission reduction target is set at the Group
level. For Scope 1–2 emissions, our reduction target is
42%, and a separate 42% reduction target has been set
for Scope 3 emissions, which will be further specified
during 2026. Our emission reduction targets are
aligned with the 1.5°C scenario. The target period is
2025–2030 for all scopes, with 2024 as the base year.
2024 represents a normal operational year where no
major changes or investments were made, and since
the newest Sustainability Agenda covers the years
2025–2030, we compare the actions taken during that
period with a comparable base year that meets the
requirement of not preceding the first reporting year of
the new target by more than three years.
In setting our emission reduction target, we
have utilized recognized climate frameworks
such as the Science Based Targets initiative (SBTi),
69Suominen Annual Report 2025
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Progress of climate-related targets
Progress in
Target 2030 KPI 2025 2024
Reducing Scope 1, 2 and 3 greenhouse gas emissions with
the goal of limiting global warming to 1.5°C in line with
the Paris Agreement by 2030.
Scope 1 and 2 total emissions (market-based)
(tCO₂e) 84,568 94,800
% change in total Scope 1 and 2 GHG emissions
(market-based) -11% N/A
Scope 3 total emissions (tCO₂e)
The scope of the target will be specified in 2026. 534,980 598,369
as well as 1.5°C scenarios developed by the
Intergovernmental Panel on Climate Change (IPCC)
as a benchmark, to ensure that our target is aligned
with a 1.5°C-compatible emissions pathway. We have
engaged internal stakeholders across business units to
ensure alignment with strategic objectives, operational
performance, risk management, and investment
considerations, as well as external stakeholders,
including suppliers, customers, and investors, to
understand their climate initiatives and expectations,
and to take these into account in setting our climate
targets.
In setting our GHG emission reduction targets,
Suominen has considered expected future
developments that may affect both its emissions profile
and the achievement of emissions reduction targets.
These include assumptions related to anticipated shifts
in customer preferences and demand towards more
sustainable and circular products, evolving regulatory
requirements related to climate and environmental
performance, and the availability and deployment of
new technologies supporting emissions reductions.
These assumptions have been incorporated at a high
level in the target-setting process to ensure that the
targets remain achievable under plausible future
scenarios, while supporting the long-term resilience of
the strategy and business model.
In 2025, Suominen began developing its climate
change roadmap and transition plan, identifying key
hot spots across its operations. For Scope 1 and 2, the
main focus will be on enhancing energy efficiency
and transitioning to fossil-free electricity. For Scope 3,
the main emission source is purchased raw materials.
Therefore, Suominen will focus on improving raw
material efficiency, evaluating its product portfolio
and potential investments, and strengthening supplier
engagement activities. Suominen’s climate transition
plan will be aligned with the new company strategy.
A more detailed climate transition plan as well as
absolute GHG reduction targets will be disclosed once
the new strategy has been adopted by the company.
Suominen’s Sustainability Agenda 2025–2030
does not include measurable time-bound outcome-
oriented targets for energy or climate adaptation.
One of the objectives of target setting for Suominen’s
Sustainability Agenda 2025–2030 was to focus our
targets on the environmental matters seen as most
material. In addition to our GHG reduction target, a
target was set for reducing nonwoven landfill waste.
No targets were set for energy consumption and
climate change adaptation because those were not
seen as equally significant matters to reducing GHG
emissions or landfill waste. Thus, no measurable
time-bound outcome-oriented targets were seen as
necessary for these topics specifically. Nevertheless,
alternative fossil-free energy sources and improving
energy efficiency are an important part of reducing our
GHG emissions and achieving our emission reduction
target. We also continuously track the effectiveness
of our HSEQ Policy by monitoring our energy
consumption and assessing climate change-related
risks in our Enterprise Risk Management processes.
Energy consumption and mix
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. Suominen
is evaluating opportunities for additional solar panel
investments.
Consolidated energy data covers all our production
units. The headquarters in Espoo, Finland, and the
Gallarate office in Italy are excluded from this data,
since their energy use is insignificant compared to
the energy use at our production sites. Consolidated
energy data is collected monthly from Suominen’s
production units, based on energy meters and
invoices. For the Windsor Locks site in the United
States, only the consumption data of Suominen’s
production lines is taken into account in the energy
consumption figures.
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Energy intensity based on net sales
Suominen operates in the following high climate
impact sector: Manufacture of nonwovens and
articles made from nonwovens, except apparel
(NACE Code 13.95). Sectors with a high climate impact
are listed in NACE sections A–H and L (as defined in
Commission Delegated Regulation (EU) 2022/1288).
All of Suominen’s revenue is connected to this high
climate impact sector. The energy intensity has been
calculated by dividing the total energy consumption
from activities in the high climate impact sector by our
total net sales (in the consolidated statement of profit
or loss in the consolidated financial statements).
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 Scope 1
greenhouse gases originate from the consumption
of fossil fuels used mainly for the generation of
process heat. Indirect Scope 2 emissions related to
energy production are caused by the production of
purchased electricity and steam. Other indirect Scope
3 emissions are caused by those activities we are
indirectly responsible for across the whole value chain.
The calculation includes all greenhouse gases covered
by the GHG Protocol (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆,
and NF₃), and emissions are reported in carbon dioxide
equivalents (CO₂e).
In 2025, Suominen’s total GHG emissions (market-
based) decreased by 11% compared to the previous
year. Total GHG emissions from Scope 1 and 2
(market-based) decreased by 11% in 2025. The
decrease was mainly caused by reduced production
volumes and updated emission factors. The GHG
emissions from Scope 3 decreased by 11% compared
to 2024. In 2025, no significant actions related to
Scope 3 emissions were carried out to prevent,
mitigate or remedy impacts, nor to address the
associated risks, as we focused on higher priority
measures within the company. The decrease in Scope
3 emissions was mainly driven by lower production
volumes and the use of new supplier-specific emission
factors in the calculation. For 2024, the Scope 3.3
data has been reconciled due to an error identified in
the calculations, resulting in a change to the overall
Scope 3 figure for 2024.
Energy intensity based on net revenue 2025 2024
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high
climate impact sectors (MWh/EUR) 0.00119 0.00114
Energy consumption and mix 2025 2024
1. Fuel consumption from coal and coal products (MWh) 0 0
2. Fuel consumption from crude oil and petroleum products (MWh) 1,717* 545
3. Fuel consumption from natural gas (MWh) 245,130 252,327
4. Fuel consumption from other fossil sources (MWh) 0 3,044
5. Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 116,366** 111,486
6. Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) 363,213 365,395
Share of fossil sources in total energy consumption (%) 74% 70%
7. Consumption from nuclear sources (MWh) 35,134 44,406
Share of consumption from nuclear sources in total energy consumption (%) 7% 8%
8. Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste
of biologic origin, biogas, renewable hydrogen, etc.) (MWh) 0 0
9. Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 92,920 111,348
10. The consumption of self-generated non-fuel renewable energy (MWh) 1,390 1,579
11. Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 94,310 112,927
Share of renewable sources in total energy consumption 19% 22%
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 & 11) 492,658 524,735
* Propane has been included in this category in 2025. In 2024, it was included in “Fuel consumption from other fossil sources”.
** Includes renewables in electricity mix for two sites; no guarantees of origin, therefore reported as electricity from fossil sources.
Energy production 2025 2024
Non-renewable energy production (MWh) 0 0
Renewable energy production (MWh) 1,390 1,579
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Greenhouse gas emissions, milestones and targets
Retrospective Milestones and target years
Base year
2024* 2024 2025
Change
% 2025 /
2024 2025 2030 (2050)
Annual %
target /
Base year
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO₂eq) 48,926 48,926 45,596 -7% N/A N/A N/A N/A
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) N/A 0% 0% 0% N/A N/A N/A N/A
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO₂eq) N/A 67,195 58,035 -14% N/A N/A N/A N/A
Gross market-based Scope 2 GHG emissions (tCO₂eq) 45,874 45,874 38,972 -15% N/A N/A N/A N/A
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO₂eq) N/A 598,369 534,980 -11% N/A N/A N/A N/A
1. Purchased goods and services N/A 455,117 390,423 -14% N/A N/A N/A N/A
2. Capital goods N/A 4,025 7,488 86% N/A N/A N/A N/A
3. Fuel and energy-related activities (not included in Scope 1 or Scope 2) N/A 25,952** 25,414 -2% N/A N/A N/A N/A
4. Upstream transportation and distribution N/A 38,250 41,235 8% N/A N/A N/A N/A
5. Waste generated in operations N/A 4,010 6,217 55% N/A N/A N/A N/A
6. Business travelling N/A 1,133 1,186 5% N/A N/A N/A N/A
7. Employee commuting N/A 1,451 1,318 -9% N/A N/A N/A N/A
9. Downstream transportation N/A 8,837 7,463 -16% N/A N/A N/A N/A
10. Processing of sold products N/A 25,620 22,438 -12% N/A N/A N/A N/A
12. End-of-life treatment of sold products N/A 32,493 30,333 -7% N/A N/A N/A N/A
13. Downstream leased assets N/A 1,480 1,465 -1% N/A N/A N/A N/A
Total GHG emissions
Total GHG emissions (location-based) (tCO₂eq) N/A 714,490 638,612 -11% N/A N/A N/A N/A
Total GHG emissions (market-based) (tCO₂eq) N/A 693,169 619,548 -11% N/A N/A N/A N/A
* The Scope 3 target will be specified in 2026.
** The 2024 scope 3.3 value (19,899) has been revised.
Greenhouse gas emission calculation
methodology and assumptions
Suominen calculates its Scope 1, 2 and 3 greenhouse
gas emissions according to the Greenhouse Gas
Protocol “A Corporate Accounting and Reporting
Standard” and “Corporate Value Chain (Scope 3)
Accounting and Reporting Standard”. Suominen
reports using an Operational control approach. Scope
1 and 2 emission calculations are based on the energy
consumption data of the sites, whereas Scope 3 data is
based on consumption and spend information as well
as estimations.
Suominen’s direct (Scope 1) greenhouse gas
emissions are from the sources controlled by
Suominen. No Scope 1 biogenic emissions are
generated from our operations as only fossil fuels
are used.
Suominen’s indirect (Scope 2) greenhouse gas
emissions cover emissions from purchased electricity
and steam. Biogenic emissions (Scope 2) are generated
at one site, in Nakkila, where the purchased steam is
produced by burning wood chips. For now, Suominen
does not calculate Scope 2 biogenic emissions due to
the limited availability of data. Market-based emissions
are used for target setting and for following our
progress. The Greenhouse Gas Protocol’s calculation
hierarchy and related emission factors are used for
72Suominen Annual Report 2025
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of data, Suominen does not calculate Scope 3
biogenic emissions.
The greenhouse gas emission category 1 is called
Purchased goods and services. Purchased goods are
calculated based on material amounts (mass) from
an internal spend report, which is based on invoices.
Raw material emissions are calculated by using
supplier-specific emission factors or emission factors
from the ecoinvent database, which represent the
average country-specific or global production-related
emissions for the raw material. The emissions arising
from other production-related materials are calculated
with Defra or ecoinvent emission factors. Purchased
services are based on spend data, and emission factors
are applied from the Exiobase database.
Emission calculation for capital goods (category 2) is
based on spend data on investments. Emission 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 emission 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 ton-kilometers. Upstream
and downstream categorization is done based on the
Incoterms of each shipment. Calculations are based on
Defra factors.
Emissions from waste (category 5) are primarily
calculated using Defra emission factors, supplemented
by factors provided by local institutes and studies.
For business travel (category 6), the data is based
on reports provided by several travel agencies.
Calculations are based on Defra conversion factors.
Well-to-tank (WTT) emissions are included, and air
travel includes RF emissions.
Employee commuting (category 7) is based on
personnel data from Suominen’s internal HR system.
The calculations take into account partial remote
work for white-collar employees and on-site work for
blue-collar employees. Calculations include round-trip
commuting between employees’ homes and work
facilities. Defra factors are used, and WTT emissions
are included.
Processing of sold goods (category 10) is based on
the volume of sold products to customers. Accurate
emissions were calculated for those products sold for
which customer-specific primary data were available.
If customer-specific primary data was not available,
an average value calculated from customer emission
factors was used.
End-of-life treatment of sold goods (category 12) is
based on volumes sold to customers, categorized into
estimated end-use applications and disposal methods
for each use case. Emission factors used are the same
as in category 5.
Downstream leased assets (category 13) include
Suominen’s rental properties leased to two parties in
Bethune. Calculations are based on consumption data,
energy sources are asset-specific, and the emission
factors used are obtained from the Defra database.
The uncertainties related to GHG calculations are
mainly associated with indirect Scope 3 emissions.
In all Scope 3 categories, the activity data used in the
calculations is based on Suominen’s primary data.
However, certain assumptions have been necessary
regarding transportation routes as well as the
further processing and end-of-life treatment of sold
products. These assumptions are based on primary
data whenever available. In the calculation, we have
also estimated the weights of purchased materials
that are based on quantity or other non-mass units
(excluding fiber purchases). We continuously strive
to improve the quality of our Scope 3 emissions
assessment by increasing the share of primary data in
our calculations, for example by using supplier- and
customer-specific emission factors when available.
the calculation of both market- and location-based
methods.
Market-based emission factors are mainly derived
from the local suppliers, or, when appropriate, residual
mixes (RE-DISS project) are used. Our sites using
fossil-free electricity have certificates from local
suppliers confirming the origin of the energy. Emission
factors used for location-based emissions are derived
from the US national statistics (such as the eGRID
database), and for all other production sites country-
based databases are used.
Suominen calculated its Scope 3 emissions for the
third time in 2025. The calculations were based on the
Greenhouse Gas Protocol. The Scope 3 calculation
includes 15 different emissions categories in total,
and all of these were evaluated for relevance to
Suominen. 11 categories were deemed material and
included in the calculations. Excluded categories
were from the upstream side: leased assets, and from
the downstream side: use of sold goods, franchising,
and investments, as Suominen does not have
activities or emission sources within these emission
categories. The relevance of emission sources was
determined together with an external consultant.
32% of Scope 3 greenhouse gas emissions are based
on primary data collected from suppliers and other
value chain partners. Due to the limited availability
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Greenhouse gas intensity based on net sales
The GHG intensity has been calculated by dividing
the total GHG emissions (both location- and market-
based) by the total net sales (in the consolidated
statement of profit or loss in the consolidated financial
statements).
GHG intensity based on net revenue 2025 2024
Total GHG emissions (location-based) per net revenue (tCO₂eq/EUR) 0.00155 0.00153
Total GHG emissions (market-based) per net revenue (tCO₂eq/EUR) 0.00150 0.00149
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E2 Pollution
Our material impacts, risks and opportunities related to pollution
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Pollution - Possible microplastics
from products
- Plastic-free products
in portfolio
- Continuous R&D of
plastic-free products
- Monitoring of
discharge waters
- Ban of plastics and
increasing regulation
on microplastics
- Innovations regarding
microplastics
Interaction with strategy and
business model
Suominen does not produce any significant pollution
in our own operations. As water is an essential
resource for Suominen, we regularly monitor our water
discharges at all sites to minimize our environmental
impacts related to water pollution. Plastic pollution in
water has become a major environmental concern,
causing governments to introduce regulations on
plastic usage and waste.
Disposability is a feature that is essential for the end
use of many of our products, for example hygiene
products, and for this reason Suominen is continuously
developing plastic-free products, resulting in the
improvement model to successfully manage
environmental matters at all locations.
Actions and resources related
to pollution
Two significant investments are currently underway
contributing to the mitigation of negative impacts
and financial risks related to microplastics. We are
strengthening our sustainable, non-plastic production
at our Bethune site by having developed and upgraded
one of our production lines. This investment project
has been completed. Our investment project in a new
production line in Alicante, Spain, announced in 2024
to strengthen our capabilities in sustainable products,
progressed as planned in 2025. The new production
line is planned to start producing at the end of the first
quarter of 2026.
Targets related to pollution
Suominen’s Sustainability Agenda 2025–2030 does
not include pollution-related targets. One of the
objectives of the target resetting carried out during
the development of Suominen’s Sustainability
Agenda 2025–2030 was to focus our targets on
the environmental matters seen as most material.
Pollution is not seen as equally significant to other
environmental matters, and thus no measurable,
avoidance of potential microplastic pollution
happening in our downstream value chain.
Material pollution-related positive impacts from
Suominen’s own activities include the plastic-free
products in Suominen’s portfolio, our continuous
research and development of plastic-free products,
and discharge water monitoring. Material impacts
Suominen is involved with through business
relationships include the possible microplastic
pollution caused by improper disposal of our products
by end-users. Possible microplastic pollution from
our products can negatively affect people and the
environment, as microplastics can accumulate
in organisms. Our plastic-free products and the
continuous research and development in this area can
reduce the pollution of microplastics from nonwovens
globally. All our material impacts can materialize within
a short time horizon.
Material financial risks Suominen is involved with
through business relationships in the upstream value
chain include bans of plastics and increasing regulation
by regulatory bodies.
Opportunities related to innovations regarding
microplastics arise from our own development
activities, as well as from the operational environment
in which we operate.
One of the four themes of our Sustainability Agenda
for 2025–2030 is low impact manufacturing, as we
continuously strive to decrease negative environmental
impacts of our operations and supply chain. We have
not set pollution-specific targets, since pollution has
not been identified as a focus point for our actions.
Our other targets related to low impact manufacturing
also contribute to the minimization of pollution.
Policies related to pollution
Pollution is included under Suominen Group HSEQ
Policy. The purpose and general information of the
HSEQ Policy is disclosed under E1 Climate change.
In the HSEQ Policy, it is stated that Suominen
strives to ensure that proper initiatives are taken at
all organizational levels to prevent pollution, reduce
environmental impact and adopt a continuous
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time-bound outcome-oriented targets were seen as
necessary.
Targets were set for reducing nonwoven landfill
waste and GHG emissions. Landfill waste is closely
linked to pollution, and it is disclosed under
E5 Resource use and circular economy.
Nevertheless, water pollution of our outflow water is
monitored at site level to make sure our operations are
aligned with our HSEQ Policy and local environmental
policies and legislation. Processes and indicators
related to water monitoring are described in Pollution
of water.
Pollution
Pollution of water
We regularly monitor our water discharges at each
site to minimize our environmental impacts related
to water pollution. The pollutants monitored at our
sites vary depending on the requirements set by
environmental permits, local policies or legislation. All
our water monitoring is carried out by an independent
third party and the monitoring frequency varies
between sites. The pollution data is collected at site
level from water monitoring reports and consolidated
at Group level. The Windsor Locks site is excluded
from water pollution data, since the site is operated
jointly with Ahlstrom, there is no line-specific water
monitoring in place, and the operational control of
water treatment is with Ahlstrom.
In 2025, no exceedance of the applicable
threshold values of water pollutants listed in Annex
II of Regulation (EC) No 166/2006 of the European
Parliament and of the Council (European Pollutant
Release and Transfer Register “EPRTR Regulation”) was
monitored.
Microplastics
Suominen manufactures nonwovens, part of
which are made from oil-based raw materials and
therefore contain plastic. The nonwovens produced
by Suominen are further processed into single-use
products, such as wipes. Eventually, the nonwoven
end product will end up as waste. If the product
is disposed of improperly, microplastics may
unintentionally be released into the environment. The
potential microplastic pollution and disposal of end
products occur in our downstream value chain in the
hands of product end-users, such as consumers. For
this reason, estimating the amount of microplastics
released from our nonwovens robustly is not possible.
We aim to minimize the possible microplastic pollution
occurring in our value chain by developing our
plastic-free offering and engaging in other research
and development activities.
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E3 Water
Our material impacts, risks and opportunities related to water
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Water - High water
consumption in
operations
- 90% of water returned
to water bodies or
sanitary sewer systems
- Water reuse processes
- Increasing water price
in Spain
- Increasing water
scarcity in Spain
Interaction with strategy and
business model
Water is an essential resource for Suominen, as it is
used in nonwovens production processes to bind
fibers together into nonwoven fabrics. Approximately
89% of the water taken into our processes is
discharged back to water bodies or sanitary sewer
systems, which means that only 11% of our water
intake is consumed in our production processes,
mainly through evaporation. The wetlaid production
technology that is used at two Suominen production
sites requires significantly more water than other
production technologies. Wetlaid production accounts
for 83% of Suominen’s total water intake.
Material water-related impacts from Suominen’s
own activities include the negative impact of water
No water-related material opportunities were identified
during the double materiality assessment.
One of the four themes of our Sustainability Agenda
for 2025–2030, low impact manufacturing, considers
the impact we have on water. We continuously strive
to decrease the negative environmental impacts of
our operations.
Policies related to water
Water is included under Suominen Group HSEQ Policy.
The purpose and general information of the HSEQ
Policy is disclosed under E1 Climate change.
Resource efficiency is a key part of the Policy,
and in compliance with it, Suominen is committed
to reducing water usage, using water efficiently,
and minimizing water pollution by continuously
developing its production processes and employing
the best available methods and technologies.
Suominen is dedicated to full compliance with local
and international laws and regulations related to
the protection of the environment. 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 either in our
own or municipal water treatment sites before being
discharged.
Suominen has evaluated the scarcity of water at our
sites by using the World Resources Institute’s Water
consumption and the positive impacts of the
89% water return rate and water reuse processes.
Production of wood-based fibers is often also water
intensive; thus, water consumption is also significant
in our upstream value chain. High water consumption
can affect water availability negatively, especially
in areas with water scarcity. Our high water return
rate and reuse processes can affect water availability
positively and increase the resilience of water systems
against water shortages. All our material impacts can
materialize within a short time horizon.
All our material water-related financial risks are
related to Suominen’s own activities, as they concern
our Alicante site, which is located within a high-risk
area where water can be considered a scarce resource.
Risk Atlas. One of our production sites, Alicante, is
in a high-risk area where water can be considered a
scarce resource. The water intake of this site accounts
for approximately 1% of Suominen’s total water intake
(2025). The site is covered by the Suominen Group
HSEQ Policy.
Actions and resources related
to water
No significant water-related actions to prevent,
mitigate, or remediate impacts or to address risks have
been taken in 2025 due to a focus on higher-priority
initiatives. Suominen continues to monitor its water
consumption and assess the need for any water-
related actions.
Suominen re-evaluates the scarcity of water at our
sites by using the World Resources Institute’s Water
Risk Atlas regularly, most recently in 2025. No specific
actions have been taken at our site located in a
high-risk area in 2025 due to a focus on higher-priority
initiatives.
Suominen has identified one potential medium-term
investment that would significantly improve the water
efficiency of production in our value chain. No specific
capital expenditures or other financial resources have
yet been allocated in relation to the investment.
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Targets related to water
Suominen’s Sustainability Agenda 2025–2030 does not
include water-related targets. One of the objectives of
the target resetting carried out during the development
of Suominen’s Sustainability Agenda 2025–2030 was
to focus our targets on the environmental matters
seen as most material. Water was not seen as equally
significant to greenhouse gas emissions or waste,
and thus no measurable time-bound outcome-
oriented targets were seen necessary. Nevertheless,
we continuously track the effectiveness of our
HSEQ Policy in relation to our water consumption.
Processes and indicators related to water consumption
monitoring are described in Water consumption.
Water consumption
Consolidated water data covers all our production
units. The headquarters and the Gallarate office
are excluded from this data, since the water used
is insignificant compared to the water used at our
production sites. We measure our water inflows
(water withdrawals and municipal water supply), water
consumption, and water outflows (water discharges)
separately for each site. The measurement methods
vary between sites from inflow and outflow meters to
estimations based on purchases. Water consumption
is calculated at site level based on the difference
between inflow water and outflow water.
We cannot measure our recycled or reused water
in operations in all our production units, but we have
estimated the amount separately for each site. The
water recycled and reused has been estimated based
on the share of total water intake that can be reused
or recycled in our processes. We report the share of
reused or recycled water, and not the actual amount
of water circulated in our processes repeatedly before
it is discharged it as wastewater. The estimations have
been carried out based on calculations of, for example,
water balance, reclaimed water, and process water
demand. The estimation methodology varies between
sites since their water flow processes are different.
We continue to further analyze our water balance in
2026 in order to increase the estimation accuracy of
recycled or reused water.
Water metrics 2025 2024
Water consumption (m
3
) 788,588 1,030,391
Water consumption in areas of water stress (m
3
) 62,766 66,293
Water recycled and reused (m
3
) 800,813 3,041,949
Water intensity (m
3
/M EUR net revenue) 1,912 2,229
Water withdrawals from surface water (m
3
) 4,346,266 4,483,344
Water withdrawals from ground water (m
3
) 2,311,082 2,348,271
Water discharges (m
3
) 6,403,936 6,459,387
2025 2024
Net sales, EUR million 412.43 462.32
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E5 Resource use and circular economy
Our material impacts, risks and opportunities related
to resource use and circular economy
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Resource use and
circular economy
- Resource-use-
intensive operations
- Use of fossil-based
materials
- Single-use and non-
reusable products
- Challenging product
circularity
- Landfill waste
generated in
operations
- Possible overuse of
materials through
unoptimized
manufacturing
processes in the future
- Use of recycled
materials
- Resource-efficient
products in portfolio
- Continuous R&D
supporting material
efficiency
- Collaboration within
value chain
- Possibility to
contribute to
circular economy by
increasing recyclability
of products
- Biodegradable and
compostable products
in portfolio
- Possibility to
contribute to circular
economy by selling
nonwovens generated
in manufacturing,
which do not fulfill
our own quality
requirements, for
reuse
- Rapid market changes
away from plastic-
based materials
- Changing consumer
preferences
- Increasing raw
material prices
- Increasing
environmental
concerns from
stakeholders towards
plastic-based and
single-use products
- Raw materials from
recycled sources
or new innovative
sources
- Raw materials from
renewable sources
- Increasing production
efficiency
- Increasing demand in
plastic-free products
- Circular business
models and products
creating new business
opportunities
- Increasing demand
in biodegradable and
compostable products
Interaction with strategy and
business model
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 including lyocell, viscose and
pulp, and fossil-based fibers such as polypropylene,
and polyester, in the production of nonwovens.
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 the efficient
utilization of raw materials, and we continuously work
to improve our material efficiency even further.
Most of our resource use and circular economy-
related material impacts are associated with our own
activities. Material impacts related to Suominen’s
business relationships include the negative impact
of waste generated from our single-use products
by the end-users, and the positive impacts from
collaboration and the possibility to sell nonwovens
generated in manufacturing, which do not fulfill our
own product quality requirements, to our business
partners for reuse, increasing circularity and decreasing
landfill waste.
Our resource use intensity affects the environment
negatively by consuming natural resources and
causing emissions. This is also impacted by our use
of non-renewable materials, circularity challenges,
and potentially less efficient production processes.
Landfill waste from our production can cause local
pollution and soil contamination, and the disposal of
our single-use end products made from Suominen’s
nonwovens can cause littering if not disposed of
correctly or properly.
Our positive impacts, such as the use of renewable
and recycled materials and continuous research and
development, mitigate these negative impacts. We
are reducing the waste load of nonwovens with our
biodegradable and compostable products and through
our own operations by actively reducing landfill waste.
Our actual material impacts can materialize within a
short time horizon, while our potential impacts can
materialize within a medium time horizon.
Risks that arise in the context of our business
relationships in the upstream value chain include
increasing raw material prices from our suppliers.
Risks that arise in the context of our business
relationships in the downstream value chain include
changes in the market environment, changes in
consumer preferences, and increasing environmental
concerns from stakeholders towards plastic-based
and single-use products. Resource use and circular
economy-related material opportunities Suominen is
involved with through our own activities include our
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efforts towards more sustainable products and material
efficiency. Increasing demand for sustainable products
from our customers in our downstream value chain
creates opportunities and supports the mitigation of
financial risks.
One of the four themes of our Sustainability
Agenda for 2025–2030, low impact manufacturing,
considers the impact we have on the circular economy
and waste. We continuously strive to decrease the
environmental impacts of our operations, and we
have set targets related to our raw material use, landfill
waste, and sustainable product sales and development.
Policies related to resource use and
circular economy
Resource use and waste are included under Suominen
Group HSEQ Policy. The purpose and general
information of the HSEQ Policy is disclosed under
E1 Climate change.
Resource efficiency is a key part of the Policy, and
in compliance with it, Suominen is committed to
continuously improving our production efficiency
and the efficient utilization of natural resources. Raw
material suppliers are required to sign and comply
with Suominen’s Supplier Code of Conduct. More
information on supplier engagement is reported
under G1 Business conduct. We support responsible
forest management practices, and offer nonwovens
produced from FSC
®
, PEFC, and SFI
®
certified
raw materials.
The HSEQ Policy addresses most of our material
impacts, risks and opportunities connected with our
operations and our upstream and downstream value
chain. The HSEQ Policy does not currently address the
impacts, risks and opportunities related to transitioning
away from the use of virgin resources or to relative
increases in the use of secondary (recycled) resources.
Actions and resources related to
resource use and circular economy
In 2025, no significant resource use and circular
economy-related actions to prevent, mitigate or
remediate impacts or to address risks or opportunities
have been taken due to a focus on higher-priority
initiatives. Suominen continues to monitor our
resource efficiency and circularity and develop
recycling solutions to achieve greater raw material
efficiency in the future.
Targets related to resource use and
circular economy
In line with our strategy and HSEQ Policy, our
Sustainability Agenda for 2025–2030 set targets and
key performance indicators related to our products,
raw material use and manufacturing waste.
The targets relate to our material negative impact
of resource use and landfill waste and our material
positive impact and opportunity of sustainable
products. The targets cover all our production sites.
The targets are set by us voluntarily and are not
required by legislation. The Sustainability Agenda
was formulated based on materiality assessments,
which included input from our stakeholders. The
targets have been set based on the environmental
data gathered from our sites and are not based on
scientific publications.
Developing sustainable products is at the core of our
research and development (R&D) activities. Suominen’s
sustainable products have to fulfil at least one of the
following criteria: products are made of plastic-free or
partially recycled raw materials, or are compostable
or dispersible nonwovens. Sustainable product
launches include new sustainable product launches,
re-launches and concepts related to sustainable
products. We direct more than half of our new R&D
initiatives to support testing new raw materials and the
development of new sustainable products (e.g. Green
Lab compostability center), services and processes.
Target progression is followed as a relative target: new
R&D initiatives focusing on advancing the development
of sustainable products, compared to the total number
Progress of resource use and circular economy-related targets
Progress in
Target 2030 KPI 2025 2024
More than two thirds of consumed raw materials are from
plant-based resources by 2030 (%)
Share of consumed raw materials made of
plant-based raw materials out of all consumed raw
materials (%) 62% 62%
Progress in
Target 2030 KPI 2025
Zero nonwoven manufacturing waste to landfill by 2030 Nonwoven waste to landfill (tons) 6,604
Share of nonwoven manufacturing waste to landfill
out of all nonwoven manufacturing waste (%) 43%
More than half of our new R&D initiatives focus on advancing
the development of sustainable products by 2030 (%)
Share of new R&D initiatives focused on sustainable
products out of all new R&D initiatives (%) 50%
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of new R&D initiatives. In 2025, 50% of new R&D
initiatives focused on advancing the development of
sustainable products.
Regarding our material use, we aim that more than
two thirds of the consumed raw materials will be from
plant-based resources by 2030. Raw materials play
a vital role in the manufacturing of nonwovens. By
prioritizing sustainable virgin and recycled plant-based
raw materials, Suominen strengthens its offering of
sustainable and high-performing products to reduce
dependence on non-renewable raw materials. Target
progression is followed as a relative target, plant-based
raw material use compared to total raw material use.
The percentage is absolute volume based and the
measuring unit for raw material use is tons. In 2025,
62% (62%) of consumed raw materials were from
plant-based resources.
Regarding manufacturing waste, our target is zero
nonwoven manufacturing waste to landfill by 2030.
Suominen aims to ensure that all nonwoven waste
generated during the manufacturing process is
completely diverted from landfills through methods
and levels of the waste hierarchy laid down in the
EU Waste Framework Directive such as improving
production efficiency, recycling, reusing, or utilizing
waste in energy production. By diverting nonwoven
manufacturing waste to landfill, Suominen reduces
its emissions and overall environmental impact.
Along with process improvements, this commitment
also enhances the efficient use of raw materials and
energy. The target progression is absolute volume
based and the measuring unit for landfill waste is tons.
In 2025, the share of nonwoven manufacturing waste
to landfill out of all nonwoven manufacturing waste
was 43%.
The Sustainability Agenda 2025–2030 does not
directly include separate targets related to the increase
of circular material use rate or the minimization of
raw material use, but the Sustainability Agenda targets
indirectly support these goals as well. Circulating
hygiene and medical products is often challenging,
which limits our possibilities to set measurable,
outcome-oriented targets related to these topics.
However, we are constantly researching, piloting and
developing new sustainable material solutions.
Resource inflows
The main resources used in our operations include
different fiber materials, such as cellulose-based fibers,
polypropylene, and polyester. We have categorized our
resource inflows into plant-based raw materials, fossil-
based raw materials, secondary reused or recycled
raw materials and other raw materials. Plant-based
raw materials include raw materials manufactured
using biological materials, such as wood, and fossil-
based raw materials respectively include materials
manufactured using fossil materials, such as oil.
Secondary reused or recycled raw materials are raw
materials purchased from external sources which
are mostly or entirely manufactured using secondary
sources which would otherwise end up as waste.
Other raw materials include materials such as
colorants and pigments.
In 2025, the share of plant-based raw materials
was 62% (62%), with most of them being cellulosic
fibers such as viscose and pulp. Certified plant-based
materials include FSC
®
, PEFC, and SFI
®
-certified raw
materials. In addition to renewable fibers, we also
provide nonwovens made from other sustainable
sources such as PLA or recycled PET. A great example
of a frontrunner product in terms of sustainability is
HYDRASPUN
®
Circula, our first nonwoven made from
recycled paper.
Water is an essential resource for Suominen, as
it is used in our nonwovens production processes
to bind fibers together into nonwoven fabrics. Our
water consumption is disclosed under E3 Water.
Packaging materials were not assessed to be material
for Suominen, since their share in our material use
is minimal.
Consolidated resource inflow data covers all our
production units. The headquarters and the Gallarate
office are excluded from this data, since the resources
used are insignificant compared to the resources
used at our production sites. Consolidated inflow
data is collected on a monthly basis from Suominen’s
production sites, based on invoices and consumption
information, while some information is based on
separately collected statistics or estimations. For the
Windsor Locks site, only inflow data with regard to
Inflows of key material streams 2025 2024
Plant-based raw materials (tons) 76,589 86,935
Of which certified plant-based raw materials (%) 78% 54%
Fossil-based raw materials (tons) 46,002 52,114
Other raw materials (tons) 2.5 150
Secondary reused or recycled plant-based materials (tons) 0.0 0.0
Secondary reused or recycled fossil-based materials (tons) 1,649 1,836
Secondary reused or recycled materials (%) 1% 1%
Raw materials in total (tons) 124,242 141,036
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Suominen’s production lines is taken into account in
the environmental figures. Inflow material streams
are only calculated into one category, i.e. secondary
reused or recycled materials are only included in
the secondary reused or recycled material metrics
regardless of whether they are plant-based or fossil-
based. Suominen also has internal cycles for raw
material reuse, which are not included in the metrics.
Resource outflows
Products
Suominen manufactures nonwovens as roll goods
for wipes and other applications. After Suominen’s
production site, nonwovens will be converted into end
products by our customers. 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. Suominen has a particular portfolio of
sustainable products manufactured by a variety of
technologies. Our key products that are designed
according to circular principles (including recycling
and recirculation in the biological cycle), are
biodegradable, compostable, dispersible or made from
recycled materials.
The BIOLACE
®
and HYDRASPUN
®
product families
of nonwovens are produced solely from renewable
raw materials, such as plant-based fibers. Suominen
has evaluated that the BIOLACE
®
and HYDRASPUN
®
products will biodegrade and compost like the fibers
from which they are made, since their manufacturing
does not require any binders or chemicals that could
potentially interfere with the process. If additional
chemicals are added to these raw materials, the
final product needs to be re-evaluated according to
certification criteria.
Suominen’s products made from 100% plant-
based fibers are 100% recyclable by recirculation in
the biological cycle. Nonwovens manufactured by
Suominen are not available for consumers as end
products. Suominen’s products will be converted into
end products by our customers, which will affect the
recyclability of the end products.
Waste
The waste fractions generated in Suominen’s own
operations originate from the nonwoven production
process (e.g. trim waste) and the packaging of
nonwoven roll goods. Suominen’s waste fractions
are mainly classified as non-hazardous waste. Small
amounts of hazardous waste are generated from our
production, mainly from the use of certain colorants
and binders. In waste management, Suominen’s
priority is to prevent waste generation in the first place
by improving material efficiency. We actively work with
different partners to increase the reuse and recycling
opportunities for our waste.
We contribute to the circular economy by selling
nonwovens generated in manufacturing, which do
not fulfill our own product quality requirements, to
our business partners for reuse. These outflows are
reported under Other recovery operations.
Consolidated waste data covers all our production
sites. The headquarters and the Gallarate office are
excluded from this data, since the amount of waste is
insignificant compared to the waste produced at our
production sites. Consolidated waste data is collected
on a monthly basis from Suominen’s production
sites, based on invoices and estimations. For the
Windsor Locks site, only waste data with regard to
Suominen’s production lines is taken into account in
the environmental figures. We have categorized our
manufacturing waste composition into plant-based
fiber waste (waste from plant-based fibers, such as
viscose, pulp, etc.), fossil-based fiber waste (waste
from fossil-based fibers, such as polyester, etc.) and
other waste (waste from other sources that do not fit
in the previous two categories), since the majority of
our manufacturing waste is fiber waste.
82Suominen Annual Report 2025
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Non-hazardous manufacturing waste 2025 2024
Preparation for reuse (tons) 9 9
Recycling (tons) 5,139 3,450
Other recovery operations (tons) 3,807 1,713
Energy recovery (tons) 1,640 1,391
Incineration (tons) 2.3 0.0
Other disposal operations (tons) 44.2 N/A
Landfill (tons) 9,794 5,337
Total non-hazardous manufacturing waste (tons) 20,436 11,900
Hazardous manufacturing waste 2025 2024
Preparation for reuse (tons) 0 0.181
Recycling (tons) 1.0 3.176
Other recovery operations (tons) 0 N/A
Energy recovery (tons) 1.1 1.001
Incineration (tons) 0.2 0
Other disposal operations (tons) 0.00 N/A
Landfill (tons) 0.3 0.40
Total hazardous manufacturing waste (tons) 2.6 4.758
Total manufacturing waste 2025 2024
Total nonwoven manufacturing waste (tons) 15,338* N/A
Total nonwoven manufacturing waste to landfill (tons) 6,604* N/A
Share of nonwoven manufacturing waste to landfill (%) 43% N/A
Total manufacturing waste (tons) 20,438 11,904
Total non-recycled manufacturing waste (tons) 15,254 8,452
Total non-recycled manufacturing waste (%) 75% 71%
* This number includes mixed waste that also contains nonwoven manufacturing waste.
Waste by composition 2025 2024
Plant-based fiber waste (tons) 12,807 7,606
Fossil-based fiber waste (tons) 7,428 4,250
Other waste (tons) 203 48
Total 20,438 11,904
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S1 Own workforce
Our material impacts, risks and opportunities related to own workforce
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Own workforce - Possible work-related
accidents
- Investments in health
and safety
- All employees covered
by occupational
health care
- Promotion of
employee well-being
- Trainings and skill
development
- Possible work-related
accidents
- Poor employee
well-being affecting
productivity
- Poor employer
reputation decreasing
access to workforce
- Employee and
contractor safety
increasing profitability
- Employee well-being
increasing productivity
- Good employer
reputation increasing
access to workforce
- Trainings and skill
development creating
new business
opportunities
Interaction with strategy and
business model
Suominen has over 650 employees representing more
than a dozen nationalities, working either at one of
our seven sites across three continents or at our head
office in Finland. Occupational safety and the overall
well-being of employees are a priority for Suominen.
We invest in increasing employee engagement,
continue to build a high-performance culture, and
continue to strengthen our safety culture. We have
not identified any significant risk of incidents of forced
labor or child labor in Suominen’s operations.
Suominen is involved with all of our material
impacts through our own activities. Our impacts
can affect the physical and mental well-being of all
our own employees and non-employees, including
blue-collar and white-collar employees. Suominen
does not have a significant number of non-employees
working at our sites. Regarding the definition and
disclosure of information on non-employees, we are
continuing to apply ESRS phase-in reliefs until FY2027.
Our blue-collar employees are more susceptible to
possible work-related accidents. Our material negative
impact of possible work-related accidents is related to
individual incidents that can occur at our production
sites. Our material positive impacts are a result of
our corporate culture and affect all our employees
and non-employees. All our material impacts can
materialize within a short time horizon.
All our material own workforce-related financial
risks and opportunities are related to Suominen’s own
activities, as they concern our own processes and
employee management. All of our material financial
risks and opportunities are related to our material
impacts and emphasize our dependency on our own
employees’ safety and well-being.
None of our material risks and opportunities arising
from impacts and dependencies on people in our own
workforce relate to specific groups of people.
One of the four themes of our Sustainability
Agenda for 2025–2030, people and safety, considers
the impact we have on our own workforce.
We continuously invest in increasing employee
engagement, continue to build a high-performance
culture, and to strengthen our safety culture. We
have set targets related to health and safety, as well
as diversity.
In 2025, Suominen developed a new People
Strategy to strengthen people management practices
and reinforce our commitment to a safe, engaging,
and innovative work environment. With safety as a
cross-cutting foundation, the strategy is built around
three priorities: attracting and retaining talent,
supporting personal growth and career development,
and increasing employee engagement through a
collaborative One Suominen mindset. The strategy
establishes a clear pathway toward these goals,
with a defined roadmap for 2025 and 2026 that
includes targeted trainings, workshops, and surveys
designed to actively involve employees in our culture
change journey.
Policies related to own workforce
Suominen has multiple policies related to our own
workforce in place to mitigate any negative impacts
and to promote our positive impacts related to
topics such as occupational safety and employee
engagement. We invest in increasing employee
engagement and our safety culture, which are the key
people-related targets in our Sustainability Agenda.
More information on employee engagement is
disclosed under Employee engagement.
Code of Conduct
Own workforce is included under Suominen
Code of Conduct. The purpose and general
information of the Code of Conduct is disclosed
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under G1 Business conduct. We have specific
commitments related to our own workforce in our
Code of Conduct, including ”A fair and respectful
workplace” and “Health, safety, and wellbeing”.
Our Code of Conduct is also in place to eliminate
discrimination, including harassment, and to promote
equal opportunities and other ways to advance
diversity and inclusion. The Code of Conduct covers
the following grounds for discrimination: age, gender,
religion, ethnic or national origin, sexual orientation,
political opinion, disability, or any other characteristic
protected under applicable law. Our Code of Conduct
training is mandatory for all employees, and employees
must retake the course every other year. Code of
Conduct training is part of our onboarding process.
We also have human rights commitments in both the
Code of Conduct and our Human Rights Policy.
HSEQ Policy
Health and safety is included under Suominen Group
HSEQ Policy. The purpose and general information of
the HSEQ Policy is disclosed under E1 Climate change.
In the HSEQ Policy, Suominen is committed to
providing a safe and healthy working environment for
all employees, contractors, and others working for us.
All Suominen Group companies and employees are
expected to respect and comply with all applicable
laws and regulations, either local or international,
and to contribute to a safe working environment
every day. Suominen is committed to achieving zero
accidents at all of its sites. To achieve this target,
Suominen commits to implementing programs to
engage employees, contractors, suppliers and visitors
to guarantee safe and healthy working conditions and
behavior models.
It is required that all Suominen employees fully
respect the established Life Saving Rules as well as
all good practices existing at the different locations.
Safety culture is continuously promoted among all
employees in order to ensure proper safety behavior.
Suominen also promotes the continuous improvement
model to successfully manage safety and to encourage
participation and consultation from all employees.
Human Rights Policy
The purpose of the Human Rights Policy is to reaffirm
Suominen’s commitment to respecting human rights.
The Policy complements our Code of Conduct and
related policies. The Human Rights Policy applies
globally to all Suominen Group companies. The
Policy focuses on human rights topics that are most
relevant to our business and operations: safe and
healthy workplace, diversity, equity and inclusion
(DEI), freedom of association and fair employment
practices, forced labor and child labor, and human
rights in our supply chain. The Policy states that
Suominen is committed to taking appropriate action to
remediate situations where our activities have caused
or contributed to an adverse human rights impact. The
Chief People & Communications Officer of Suominen
is accountable for the implementation of the Human
Rights Policy.
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 Labour
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.
Recruitment Policy
The purpose of the Recruitment Policy is to outline our
preferred hiring practices and principles for attracting
and selecting internal and external job candidates, to
promote consistency in our recruiting process across
all countries, and to define the approval rights related
to recruitment at Suominen. All in all, the purpose is to
ensure that our recruitment activities are performed in
an effective, efficient, fair, and compliant way, which
promotes our employer brand. The Recruitment
Policy is followed globally by every Suominen Group
company and every employee involved in recruitment.
The Chief People & Communications Officer of
Suominen is accountable for the implementation of
the Recruitment Policy.
Employee engagement
We engage with our employees through several
channels, including daily interactions, our global
intranet, and local intranets and the internal newsletter,
global employee engagement surveys and local pulse
surveys, performance development discussions,
and trainings. The Chief People & Communications
Officer of Suominen has operational responsibility for
ensuring that employee engagement is carried out and
appropriate actions are planned accordingly.
We conducted a global employee engagement
survey for a sixth consecutive year in 2025. The
response rate for the survey remained at a strong
level and was 91% (79%). Team-specific results are
shared with the team leaders, who will then review and
discuss them within their teams.
Based on the results, in addition to the Group-level
action plan, each site and function leader will create
a targeted, actionable development plan for their
respective organizations and will follow up on its
progress. Based on the global results, our employee
engagement index was 62%, which is five percentage
85Suominen Annual Report 2025
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points lower than in the previous survey. The index is
a combination of questions concerning our people’s
likelihood of recommending and staying in the
company, organizational pride, and commitment.
The result means that 62% of the survey participants
responded favorably to those questions.
Suominen has various channels for our employees
for raising concerns, including a SpeakUp Line hosted
by an independent third party. The SpeakUp Line
and SpeakUp Policy are described in more detail in
G1 Business conduct.
Actions related to own workforce
Suominen has policies and management systems in
place to prevent health and safety incidents, which can
have a negative impact on our own workforce. The
implementation of these policies and management
systems includes actions, such as implementing
programs, increasing competence and anticipating
accidents before they happen.
Targets related to own workforce
In line with our strategy and policies, our Sustainability
Agenda for 2025–2030 has set targets and key
performance indicators related to our own workforce.
The targets relate to our material potential negative
impact of work-related accidents as well as our
positive impacts of investments in health and
safety and employee well-being, and are related to
managing our material risks and pursuing our material
opportunities. The scope of the targets covers all our
employees and production sites globally. The targets
are set by us voluntarily and are not required by
legislation. The Sustainability Agenda was formulated
based on materiality assessments, which included
input from our stakeholders, including our own
workforce. The targets have been set based on the
data gathered from our sites and are not based on any
scientific publications.
Our health and safety target is zero lost time
accidents (LTA) annually. Ensuring the safety and
well-being of Suominen’s employees is our top
priority and main goal. We are dedicated to preventing
accidents and fostering a robust safety culture. LTA
target progression is followed as an absolute number
of lost time accidents. We had two lost time accidents
in 2025.
We are also pursuing a diversity, equity and
inclusion (DEI) index of 80% by 2030. Suominen’s
way of working is to promote human rights and equal
opportunities for all employees. We aim to improve
our DEI index by improving open and honest two-way
communication and making sure employees are
rewarded equally and fairly. We are building a culture
of diversity, where ideas and opinions can be shared
without fear of negative consequences.
DEI index progression is followed as a relative
target. The DEI index is based on the share of positive
responses to selected DEI-related questions in
Suominen’s Annual Engagement survey, open for all
Progress of own workforce-related targets
Progress in
Target 2030 KPI 2025
Diversity, equity and inclusion (DEI) index of 80% by 2030 a) DEI INDEX % result for blue collars 61%
b) DEI INDEX % result for white collars 78%
c) DEI INDEX % result for corporate total 69%
Progress in
Target 2030 KPI 2025 2024
Zero lost time accidents (LTA) annually by 2030 Lost time accidents 2 4
employees. In autumn 2024, we conducted a separate
DEI survey for our personnel. Based on the survey
results, we set the DEI metric target at 80%. In 2025,
the DEI index was 69%.
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Employee headcount by contract type, broken down by gender 2025
Male Female Other Not reported Total
Number of employees 504 183 0 0 687
Number of permanent employees 488 173 0 0 661
Number of temporary employees 16 10 0 0 26
Number of non-guaranteed hours employees 5 3 0 0 8
Number of full-time employees 493 169 0 0 662
Number of part-time employees 6 11 0 0 17
Employee headcount by contract type, broken down by gender 2024
Male Female Other Not reported Total
Number of employees 545 191 0 0 736
Number of permanent employees 517 180 0 0 697
Number of temporary employees 28 11 0 0 39
Number of non-guaranteed hours employees 6 5 0 0 11
Number of full-time employees 532 178 0 0 710
Number of part-time employees 7 8 0 0 15
Employee headcount by contract type, broken down by region
2025 2024
Europe Americas Europe Americas
Number of employees 332 355 329 407
Number of permanent employees 309 352 300 397
Number of temporary employees 23 3 29 10
Number of non-guaranteed hours employees 8 0 11 0
Number of full-time employees 313 349 312 398
Number of part-time employees 11 6 6 9
Our employees
Suominen has over 650 employees representing
more than a dozen nationalities, working either at
one of our seven sites across three continents or at
our headquarters in Finland. Metrics related to our
employees are reported by headcount and represent
the situation at the end of 2025.
Employee headcount by gender 2025 2024
Male 504 545
Female 183 191
Other 0 0
Not reported 0 0
Total employees 687 736
Employee headcount by country 2025 2024
Finland 146 155
USA 292 345
Italy 106 103
Spain 80 71
Brazil 63 62
Employees who have left 2025 2024
Number of employees who have left
Suominen 198 191
Employee turnover 2025 2024
Rate of employee turnover 27.9% 26.0%
The employee turnover rate has been calculated
by dividing the number of employees who have
left Suominen (regardless of reason) by the total
headcount. Information regarding the total number
of personnel is reported as full-time equivalent
(FTE) in our consolidated financial statements, and
more detailed human resources data is derived from
separately collected statistics. Information can be
found in Note 23 on page 146 of the consolidated
financial statements.
Our non-employees
Suominen does not have a significant number of
non-employees working at our sites. 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 all the blue-collar employees are employed
by Ahlstrom. Thus, the blue-collar employees
are not considered as Suominen’s employees or
non-employees and are excluded from metrics. We
will define our non-employees later, continuing to
apply ESRS phase-in reliefs until FY2027.
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Leadership Team by age group
2025 2024
Male Male (%) Female Female (%) Male Male (%) Female Female (%)
Under 30 0 0% 0 0% 0 0% 0 0%
30–50 1 17% 0 0% 1 25% 0 0%
Over 50 4 67% 1 17% 3 75% 0 0%
Employees by age group
2025 2024
Male Male (%) Female Female (%) Male Male (%) Female Female (%)
Under 30 59 9% 16 2% 61 8% 23 3%
30–50 238 35% 112 16% 269 37% 111 15%
Over 50 207 30% 55 8% 215 29% 57 8%
Diversity
We recognize the 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.
Training and skills development
Career development and identifying and developing
the competencies that are essential to reaching our
strategic objectives have been identified as areas
for improvement in our previous global employee
engagement surveys. In 2025, 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. We offered trainings to support
high-quality development and career aspiration
discussions to all our white-collar employees.
In addition, we enhanced our competence and
leadership capabilities by increasing human resources
to build and support both 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 development discussions.
Trainings during the year included management
trainings and various quality, safety and process
trainings for targeted roles. In 2025, managers
continued on the compulsory training path for all
white-collar managers, which includes topics such as
psychological safety, giving and receiving feedback,
and coaching essentials. DEI training was incorporated
into the onboarding process for new employees.
Additionally, in 2025, we launched a compulsory AI
Awareness and Cybersecurity trainings for all white-
collar employees.
Health and 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.
The main types of injuries for employees are strains,
cuts and bruising, and the majority are related to
the hands. Work-related incidents are entered into
an internal safety system. Incidents are reviewed in
Performance and career development
2025 2024
Male Female Male Female
Percentage of employees that participated in regular performance and career
development reviews (white-collar) 72% 81% 86% 90%
Percentage of employees that participated in regular performance and career
development reviews (blue-collar) 85% 93% 57% 22%
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safety and production meetings, depending on the
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 of injury are identified as
a part of safety walks and safety assessments, which
take into consideration severity and likelihood. Our
health and safety management systems are audited
at every site on a regular basis. Cressa and Nakkila
were the only sites audited in 2025 due to cost-saving
measures implemented at Suominen.
All of our employees are covered by our health and
safety management system. The safety management
systems are certified according to the ISO 45001
standard at all of our seven sites (the production area
of our median employee (excluding the highest paid
individual) was 13.4% (13.9%) in 2025.
Our median employee was identified using
Suominen’s globally employed personnel (full-time,
part-time, temporary, and seasonal employees)
employed on December 31, 2025. To identify our
median employee compensation, we used Suominen’s
entire employee population on December 31, 2025,
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 31, 2025.
Incidents, complaints and severe
human rights impacts
According to our Code of Conduct, 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 applicable law.
Two incidents of discrimination were reported during
the reporting period. No severe human rights incidents
connected to Suominen’s workforce occurred in the
reporting period.
of the Windsor Locks site is certified according to
ISO 45001 by Ahlstrom).
This data represents the situation at the end of 2025.
Incident data is collected continuously, using the
Group-wide accident reporting system covering all
Suominen employees.
Compensation
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. The annual total
remuneration ratio of our highest paid individual, the
President & CEO, to the annual total compensation
Incidents and complaints 2025 2024
Number of incidents of discrimination 2 1
Number of complaints filed through channels for own workers to raise concerns 4 1
Number of complaints filed to National Contact Points for OECD Multinational Enterprises 0 0
Amount of material fines, penalties, and compensation for damages as result of violations regarding social and
human rights factors 0 0
Number of severe human rights issues and incidents connected to own workforce 0 0
Number of severe human rights issues and incidents connected to own workforce that are violations of UN Global
Compact Principles and OECD Guidelines for Multinational Enterprises 0 0
Amount of material fines, penalties, and compensation for severe human rights issues and incidents connected to
own workforce 0 0
Number of severe human rights cases where undertaking played role securing remedy for those affected 0 0
Own employees 2025 2024
Number of fatalities as a result of work-related injuries 0 0
Rate of fatalities as a result of work-related injuries 0.0 0.0
Number of high-consequence injuries 0 0
Rate of high-consequence injuries 0.0 0.0
Number of recordable work-related injuries 11 25
Rate of recordable work-related injuries 8.4 19.2
Lost time accidents (LTA) 2 4
Rate of lost time accidents (LTA) 1.5 3.1
Number of days lost to work-related injuries and fatalities 182 32
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G1 Business conduct
Our material impacts, risks and opportunities related to business conduct
SUSTAINABILITY
MATTER NEGATIVE IMPACTS POSITIVE IMPACTS RISKS OPPORTUNITIES
Business conduct - Promoting sustainability
in our corporate culture
with Code of Conduct
and Sustainability Agenda
- Anti-bribery and anti-
corruption trainings held
regularly
- Supplier Code of
Conduct and EcoVadis
in place
- Payment practices
negotiated with suppliers
- Internal and external
whistleblowing channels
in place
- Good corporate
culture improves
reputation
- Our sustainability
vision attracts more
investors
Interaction with strategy and
business model
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. We collaborate
with a significant number of stakeholders in
multicultural environments every day. We develop our
business relationships in a fair and responsible way and
strive for transparency in our communication.
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.
Suominen is involved with all our material business
conduct-related impacts through our own activities.
These positive impacts are created by following our
policies and principles, such as the Code of Conduct,
Gift, Entertainment and Anti-bribery Policy, SpeakUp
Policy, Purchasing Policy and the related internal
trainings. Our sustainable sourcing practices, fair
payment practices, the use of EcoVadis and our
Supplier Code of Conduct promote sustainable
business conduct in our value chain, creating a positive
impact on society.
We did not identify any material negative impacts
related to the G1 standard (Business conduct). All
our material impacts can materialize within a short
time horizon.
All our material business conduct-related financial
opportunities are related to our business relationships.
Good corporate culture and sustainability vision can
improve our reputation and increase our attractiveness
to employees, customers and investors. We did
not identify any material financial risks related to
business conduct.
One of the four themes defined in our Sustainability
Agenda for 2025–2030 is corporate citizenship.
We promote responsible business practices in our
operations and supply chain and communicate openly
and transparently about our operations. We have set
targets related to raw material supplier assessments
and promoting sustainability in our own operations.
Policies related to business conduct
Our daily operations are guided by Suominen’s Code
of Conduct and other policies described below,
which are the cornerstones of our fair and sustainable
business practices. We promote our corporate culture
in our operations and supply chain by respecting
human rights and by adhering to high ethical standards
in all our activities. We also communicate openly and
transparently about our operations and frequently train
our employees on our Code of Conduct.
We continue to evaluate and develop our corporate
citizenship by reviewing our policies and bringing
the key policies to the Board for review and approval
every two years. We also monitor our performance
in business conduct via the Sustainability Agenda and
quarterly compliance reviews.
Code of Conduct
The Code of Conduct 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
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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 all employees, globally.
Our Code of Conduct training is mandatory for all
employees, and employees need to retake the course
every other year. The CEO of Suominen is accountable
for the implementation of the Code of Conduct.
Supplier Code of Conduct
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. As stated in our Supplier Code
of Conduct, we expect our suppliers and business
partners to understand and comply with all applicable
laws and regulations and to apply the same social,
legal, and ethical standards as Suominen.
Suominen’s Supplier Code of Conduct outlines that
suppliers are expected to continuously monitor their
compliance with the Code. Suominen may request
the supplier to verify its compliance with the Supplier
Code through a self-assessment questionnaire,
third-party assessment, and/or on-site audit. The
supplier shall cooperate with any such requests and
audits. The Code also sets out how suppliers and
their representatives can report actual or potential
misconduct. The reports can be made via the reporting
channels set out in the Supplier Code. The VP,
Sourcing & Supply Chain Management of Suominen
is accountable for the implementation of the Supplier
Code of Conduct.
Gift, Entertainment and Anti-bribery Policy
The purpose of the Gift, Entertainment and
Anti-bribery Policy is to further specify the
requirements of our Code of Conduct and provide
guidance for compliance with all applicable
anti-bribery and anti-corruption laws, and to outline
what gifts and entertainment are allowed. The Policy
serves as a minimum standard, and compliance
with it by all Suominen employees is mandatory at
all times. In jurisdictions where local anti-bribery
or anti-corruption laws set stricter rules than those
set out in the Policy, the stricter rules must prevail.
Our Gift, Entertainment and Anti-bribery Policy is
in line with the United Nations Convention against
Corruption. The General Counsel of Suominen is
accountable for the implementation of the Gift,
Entertainment and Anti-bribery Policy. We have
identified our white-collar employees as at-risk in
respect of corruption and bribery. Due to this, the
Anti-Bribery and Corruption e-Learning is mandatory
for all white-collar employees.
SpeakUp Policy
The SpeakUp Policy explains how concerns about
suspected misconduct regarding any violation of the
law or a severe violation of the Code of Conduct or
any supplementing Group policies can be raised in
confidence and without fear of retaliation. It outlines
the channels for raising concerns about suspected
misconduct and the roles and responsibilities
within the Group for handling reports of suspected
misconduct. The SpeakUp Policy applies to all
Suominen employees and is offered in all Suominen
local languages. The Chief People & Communications
Officer (CPCO) and the General Counsel are
accountable for the implementation of the SpeakUp
Policy.
The Code of Conduct training, which is mandatory
for all employees, includes information on how to raise
concerns about suspected misconduct. Our Code of
Conduct and the SpeakUp Policy allow employees
to raise concerns about suspected misconduct
through a variety of channels. The channels include
the employees’ supervisor, HR or another specialist
department, and the SpeakUp Line. The SpeakUp Line
is hosted by an independent third party and is available
at all times for raising concerns confidentially and
in the employees’ own language. The SpeakUp Line
enables misconduct and concerns to be reported
anonymously.
Review and investigation of concerns are conducted
in an independent, fair and unbiased manner with
respect to all parties involved, in accordance with
relevant laws and principles. Where the identity of the
reporting person is known, this will be protected to
the extent possible. This means that information about
concerns will only be shared with a limited number of
people on a strict need-to-know basis. Information will
only be disclosed outside this small group if Suominen
is required to do so by law, or if an important public
interest is at stake.
All reports coming in through the SpeakUp Line
are reviewed by the General Counsel and the CPCO
(the ”Compliance Officers”). The Compliance Officers
present a summary of the reports to the Audit
Committee quarterly in their regular meetings and
report all severe cases immediately to the Chair of the
Audit Committee. The Compliance Officers take part
in the anti-corruption and bribery training mandatory
for all white-collar employees, and additional training
material is offered by the SpeakUp Line provider.
Suominen has a strict policy of non-retaliation
against anyone who raises a compliance concern in
good faith. The right of non-retaliation is guaranteed
under the Code of Conduct and may also be
guaranteed by applicable national laws.
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Purchasing Policy
The purpose of the Purchasing Policy is to describe
Suominen’s principles and roles and responsibilities
for sourcing and purchasing goods and services from
third-party suppliers. Following generally accepted and
consistent purchasing practices and principles ensures
that all purchases are made in an ethical manner and
align with Suominen’s values and objectives. The
Policy applies to all Suominen employees and all
sourcing and purchasing at Suominen regardless of the
type of goods or services. The VP, Sourcing & Supply
Chain Management at Suominen is accountable for
the implementation of the Purchasing Policy.
Targets related to business conduct
As an entity-specific disclosure, Suominen discloses
its targets and progress related to business conduct.
In line with our strategy and business conduct-related
policies, our Sustainability Agenda for 2025–2030 has
set targets and key performance indicators related to
our corporate citizenship. The targets relate to our
positive impacts of promoting sustainability through
our Code of Conduct and the management of our
supplier relationships. The Sustainability Agenda was
formulated based on materiality assessments, which
included input from our stakeholders. The targets are
set by us voluntarily and are not required by legislation.
Our target is that all employees have completed
Suominen’s sustainability training program by 2030.
In addition, our target is that all qualified raw material
suppliers have been assessed against Suominen’s
sustainability criteria by 2030.
Sustainability is the core principle of all our functions.
Our goal is to ensure that every employee, regardless
of their role or function, understands and contributes
to our sustainability objectives. Sustainability is not
just a corporate responsibility but a collective effort
that requires the active participation of everyone.
To achieve this goal, we will provide comprehensive
trainings to all our employees to increase sustainability
awareness in our company. The target includes
all existing and new employees who have started
working for Suominen between Q1 and Q3 of the
year reported. Target progression is followed as a
relative target: employees who have completed the
sustainability training program, compared to the total
number employees. We will develop the sustainability
training in 2026.
By assessing raw material suppliers on their
environmental, social, and governance (ESG) practices,
Suominen can identify and mitigate potential risks
such as harmful environmental practices, unethical
labor conditions, or regulatory breaches. Sustainability
due diligence is a proactive approach and helps to
avoid supply chain disruptions and safeguard the
Group’s reputation. Moreover, investors, customers,
legislators, employees, and other stakeholders are
increasingly demanding accountability for social and
environmental impacts.
Target progression is followed as a relative target:
qualified raw material suppliers who have been
assessed against sustainability criteria, compared to
the total number of qualified raw material suppliers.
In 2025, 68% of qualified raw material suppliers were
assessed against sustainability criteria.
In order to assess our qualified raw material suppliers
against our sustainability criteria, we have started
renewing our sustainability due diligence process in
2025. The existing supplier management process is
described in the Raw Material Suppliers section.
Management of relationships
with suppliers
The Sourcing function is responsible for raw material
procurement. The goal is to select business partners
carefully and collaborate only with those who
conduct business ethically and responsibly and share
Suominen’s values. Sourcing is guided by Suominen’s
Progress of business conduct-related targets
Progress in
Target 2030 KPI 2025 2024
100% of our employees have completed
renewed Code of Conduct training
Training coverage of renewed Code of
Conduct (%)
89% 92% (not yet renewed
Code of Conduct training)
Progress in
Target 2030 KPI 2025
100 % of our employees have completed
Suominen’s sustainability training
program by 2030
Training coverage of Suominen’s
sustainability training program (%)
Not available, we will create a sustainability training
program in 2026.
100% of qualified raw material suppliers
assessed against Suominen’s sustainability
criteria by 2030
Share of raw material suppliers that
have a valid EcoVadis scorecard or are
assessed with Suominen Sustainability
Questionnaire out of all raw material
suppliers (%)
68% of qualified raw material suppliers have a valid
EcoVadis scorecard or are assessed with Suominen
Sustainability Questionnaire
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Purchasing Policy, which covers the sourcing and
purchasing of goods and services.
Raw material suppliers are required to sign and
comply with Suominen’s Supplier Code of Conduct.
The purpose of the Supplier Code of Conduct is to
explain Suominen’s expectations for doing business
responsibly and ethically and to set the standards for
conducting business with Suominen.
Raw material suppliers
Suominen’s current due diligence process for
managing sustainable raw material sourcing consists
of two elements: a country risk assessment and a
sustainability questionnaire.
We assess our potential new raw material suppliers
with a country risk assessment. The assessment
is designed to outline a standardized method for
assessing the likelihood that a potential supplier
may have insufficient sustainable practices in place
to minimize potential risks to Suominen and its
stakeholders and so that precautions can be taken
to reduce risks. We identify and consider potential
hazards and impacts concerning the environment,
labor and human rights, and ethics, based on
the geographic location and geopolitical and
governmental practices.
Every raw material supplier is required to complete
trial runs for quality and performance to ensure
their raw materials meet or exceed our standards to
become a qualified raw material supplier.
All qualified raw material suppliers will be invited and
encouraged to participate in an annual sustainability
questionnaire with EcoVadis. The resulting scorecard
disclosing an overall score is published internally.
Twice a year, Suominen monitors supplier scorecards,
taking the opportunity to engage with suppliers who
score less than the average industry score. In such a
case, Suominen will initiate a corrective action plan
(CAP) to address unacceptable scores and encourage
the supplier to make improvements.
We are going to revisit this sustainability due
diligence process for raw material sourcing and
develop it further as part of our 2025–2030
Sustainability Agenda.
Prevention of late payments
Suominen has established internal processes related
to the handling and approval of payments, which are
used and updated continuously.
Prevention and detection of
corruption and bribery
Suominen is committed to complying with all
applicable laws and responsible business practices.
Suominen’s operations are ethical and transparent,
and we also expect our suppliers and business partners
to comply with the law and apply the same ethical
standards as Suominen.
Suominen’s Code of Conduct and Gift,
Entertainment and Anti-bribery Policy guide our
principles and processes regarding the prevention of
corruption and bribery. All employees are expected
to be aware of and comply with applicable laws and
regulations and are instructed to seek legal advice if in
doubt. Any employee who becomes aware of an actual
or potential violation of the Code of Conduct has the
responsibility to report the matter via the available
channels, such as the SpeakUp Line. Every reported
suspected misconduct is investigated. Our policies are
described in more detail in Policies related to business
conduct.
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. 100% of functions-at-risk are covered by
these training programs and the training extends to all
members of the Suominen Leadership Team. At the
end of 2025, 89% of all employees had completed the
renewed Code of Conduct training.
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 ethical standards
that Suominen practices. Misconduct can be reported
by our business partners via the reporting channels set
out in the Supplier Code.
Incidents of corruption or bribery
Corruption and bribery risks are assessed at Suominen
as part of our enterprise risk management process,
which covers all Suominen locations globally.
Accordingly, 100% of our operations are assessed for
risks related to corruption. No significant risk has been
identified. In 2025, there were no identified corruption
or bribery cases. There were no convictions or fines
for violations of anti-corruption and anti-bribery laws,
and no actions were taken to address breaches in
procedures and standards related to anti-corruption
and anti-bribery. The numbers include incidents
involving actors in our value chain where Suominen or
its employees are directly involved.
Incidents of corruption or bribery 2025 2024
Number of incidents of corruption or
bribery 0 0
Number of convictions for violation of anti-
corruption and anti-bribery laws 0 0
Amount of fines issued for violation of anti-
corruption and anti-bribery laws (EUR) 0 0
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Payment practices with suppliers
Suominen follows established and consistent market
practices when agreeing on payment terms with
its suppliers. Payment terms are determined based
on the company’s working capital requirements,
local market practices, and applicable legislation.
The type of contract, delivery terms, and delivery
method also influence the determination of payment
terms. Suominen strives to comply with the agreed
payment terms with suppliers in accordance with its
internal payment processes. The average time it takes
for Suominen to pay an invoice from the date on
which the contractual or statutory term of payment
calculation begins was 46 days (47 days) in 2025.
Suominen is not a party to any legal proceedings
currently outstanding for late payments.
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Appendix
Content index of disclosure requirements Section
ESRS 2 General disclosures
BP-1 General basis for preparation of the sustainability statements General basis for preparation
BP-2 Disclosures in relation to specific circumstances Specific circumstances
GOV-1 The role of the administrative, management and supervisory bodies Governance roles and responsibilities
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
Governance roles and responsibilities
GOV-3 Integration of sustainability-related performance in incentive schemes Integration of sustainability-related performance in
incentive schemes
GOV-4 Due diligence Statement on due diligence
GOV-5 Risk management and internal controls over sustainability reporting Risk management and internal controls over
sustainability reporting
SBM-1 Market position, strategy, business model(s) and value chain Strategy
SBM-2 Interests and views of stakeholders Stakeholder engagement
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model(s)
Stakeholder engagement; Interaction with
strategy and business model: E1 Climate change;
E2 Pollution; E3 Water; E5 Resource use and circular
economy; S1 Own workforce; G1 Business conduct
IRO-1 Description of the processes to identify and assess material impacts, risks
and opportunities
Description of the processes to identify and assess
material impacts, risks and opportunities
IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s
sustainability statements
Determining disclosures, Appendix
Content index of disclosure requirements Section
E1 Climate change
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Our material impacts, risks and opportunities related
to climate change
E1-1 Transition plan for climate change mitigation Transition plan for climate change mitigation
E1-2 Policies related to climate change mitigation and adaptation Policies related to climate change
E1-3 Actions and resources in relation to climate change policies Actions and resources related to climate change
E1-4 Targets related to climate change mitigation and adaptation Targets related to climate change
E1-5 Energy consumption and mix Energy consumption and mix
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions Greenhouse gas emissions
E2 Pollution
E2-1 Policies related to pollution Policies related to pollution
E2-2 Actions and resources related to pollution Actions and resources related to pollution
E2-3 Targets related to pollution Targets related to pollution
E2-4 Pollution of air, water and soil Pollution of water; Microplastics
E3 Water and marine resources
E3-1 Policies related to water and marine resources Policies related to water
E3-2 Actions and resources related to water and marine resources Actions and resources related to water
E3-3 Targets related to water and marine resources Targets related to water
E3-4 Water consumption Water consumption
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Content index of disclosure requirements Section
E5 Resource use and circular economy
E5-1 Policies related to resource use and circular economy Policies related to resource use and circular
economy
E5-2 Actions and resources related to resource use and circular economy Actions and resources related to resource use and
circular economy
E5-3 Targets related to resource use and circular economy Targets related to resource use and circular
economy
E5-4 Resource inflows Resource inflows
E5-5 Resource outflows Resource outflows
S1 Own workforce
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Our material impacts, risks and opportunities related
to own workforce
S1-1 Policies related to own workforce Policies related to own workforce
S1-2 Processes for engaging with own workforce and workers’ representatives
about impacts
Employee engagement
S1-3 Processes to remediate negative impacts and channels for own
workforce to raise concerns
Employee engagement; SpeakUp Policy
S1-4 Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions
Actions related to own workforce
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Targets related to own workforce
S1-6 Characteristics of the undertaking’s employees Our employees
S1-7 Characteristics of non-employees in the undertaking’s own workforce Our non-employees
S1-9 Diversity metrics Diversity
S1-13 Training and skills development metrics Training and skills development
S1-14 Health and safety metrics Health and safety
S1-16 Remuneration metrics (pay gap and total remuneration) Compensation
S1-17 Incidents, complaints and severe human rights impacts Incidents, complaints and severe human rights
impacts
Content index of disclosure requirements Section
G1 Business conduct
G1-1 Business conduct policies and corporate culture Policies related to business conduct
G1-2 Management of relationships with suppliers Management of relationships with suppliers
G1-3 Prevention and detection of corruption and bribery Prevention and detection of corruption and bribery
G1-4 Confirmed incidents of corruption or bribery Incidents of corruption or bribery
G1-6 Payment practices Payment practices with suppliers
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Table of all the datapoints deriving from other EU legislation:
Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS 2 GOV-1
Board’s gender diversity
Paragraph 21 (d)
Board of Directors Indicator number 13 Table #1 of
Annex 1
Commission Delegated Regulation (EU)
2020/1816, Annex II
Percentage of board members who are independent
Paragraph 21 (e)
Board of Directors Commission Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 GOV-4
Statement on due diligence
Paragraph 30
Statement on due
diligence
Indicator number 10 Table #3 of
Annex 1
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities
Paragraph 40 (d) i
Not material Indicator number 4 Table #1 of
Annex 1
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Table 1: Qualitative
information on Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU) 2020/1816,
Annex II
Involvement in activities related to chemical production
Paragraph 40 (d) ii
Not material Indicator number 9 Table #2 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II
Involvement in activities related to controversial weapons
Paragraph 40 (d) iii
Not material Indicator number 14 Table #1 of
Annex 1
Delegated Regulation (EU) 2020/1818,
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II
Involvement in activities related to cultivation and production of
tobacco
Paragraph 40 (d) iv
Not material Delegated Regulation (EU) 2020/1818,
Article 12(1) Delegated Regulation (EU)
2020/1816, Annex II
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS E1-1
Transition plan to reach climate neutrality by 2050
Paragraph 14
Targets related to climate
change
Regulation (EU)
2021/1119, Article 2(1)
Undertakings excluded from Paris-aligned Benchmarks
Paragraph 16 (g)
Targets related to climate
change
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 1: Banking
book - Climate Change transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation (EU) 2020/1818,
Article12.1 (d) to (g), and Article 12.2
ESRS E1-4
GHG emission reduction targets
Paragraph 34
Targets related to climate
change
Indicator number 4 Table #2 of
Annex 1
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 3: Banking book
– Climate change transition risk: Alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 6
ESRS E1-5
Energy consumption from fossil sources disaggregated by sources
(only high climate impact sectors)
Paragraph 38
Energy consumption
and mix
Indicator number 5 Table #1 and
Indicator number 5 Table #2 of
Annex 1
Energy consumption and mix
Paragraph 37
Energy consumption
and mix
Indicator number 5 Table #1 of
Annex 1
Energy intensity associated with activities in high climate impact
sectors
Paragraph 40 to 43
Energy intensity based on
net sales
Indicator number 6 Table #1 of
Annex 1
ESRS E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
Paragraph 44
Greenhouse gas
emissions
Indicators number 1 and 2 Table
#1 of Annex 1
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 1: Banking
book – Climate change transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation (EU) 2020/1818,
Article 5(1), 6 and 8(1)
Gross GHG emissions intensity
Paragraphs 53 to 55
Greenhouse gas intensity
based on net sales
Indicators number 3 Table #1 of
Annex 1
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 3: Banking book
– Climate change transition risk: Alignment metrics
Delegated Regulation (EU) 2020/1818,
Article 8(1)
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS E1-7
GHG removals and carbon credits
Paragraph 56
Not material Regulation (EU)
2021/1119, Article 2(1)
ESRS E1-9
Exposure of the benchmark portfolio to climate-related physical
risks
Paragraph 66
Phased-in disclosure Delegated Regulation (EU) 2020/1818,
Annex II Delegated Regulation (EU)
2020/1816, Annex II
Disaggregation of monetary amounts by acute and chronic
physical risk
Paragraph 66 (a)
Location of significant assets at material physical risk
Paragraph 66 (c)
Phased-in disclosure Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47;
Template 5: Banking book - Climate change physical risk: Exposures
subject to physical risk
Breakdown of the carrying value of its real estate assets by energy-
efficiency classes
Paragraph 67 (c)
Phased-in disclosure Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2:
Banking book - Climate change transition risk: Loans collateralized
by immovable property - Energy efficiency of the collateral
Degree of exposure of the portfolio to climate-related
opportunities
Paragraph 69
Phased-in disclosure Delegated Regulation (EU) 2020/1818,
Annex II
ESRS E2-4
Amount of each pollutant listed in Annex II of the EPRTR
Regulation (European Pollutant Release and Transfer Register)
emitted to air, water and soil
Paragraph 28
Pollution of water Indicator number 8 Table #1
of Annex 1, Indicator number 2
Table #2 of Annex 1, Indicator
number 1 Table #2 of Annex 1,
and Indicator number 3 Table #2
of Annex 1
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS E3-1
Water and marine resources
Paragraph 9
Our material impacts,
risks and opportunities
related to water; Actions
and resources related to
water
Indicator number 7 Table #2 of
Annex 1
Dedicated policy
Paragraph 13
Policies related to water Indicator number 8 Table #2 of
Annex 1
Sustainable oceans and seas
Paragraph 14
Not material Indicator number 12 Table #2 of
Annex 1
ESRS E3-4
Total water recycled and reused
Paragraph 28 (c)
Water consumption Indicator number 6.2 Table #2 of
Annex 1
Total water consumption in m
3
per net sales on own operations
Paragraph 29
Water consumption Indicator number 6.1 Table #2 of
Annex 1
ESRS 2 IRO-1 E4
Paragraph 16 (a) i Identifying and assessing
material impacts,
risks, and opportunities
related to biodiversity
and ecosystems
Indicator number 7 Table #1 of
Annex 1
Paragraph 16 (b) Identifying and assessing
material impacts,
risks, and opportunities
related to biodiversity
and ecosystems
Indicator number 10 Table #2 of
Annex 1
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
Paragraph 16 (c) Identifying and assessing
material impacts,
risks, and opportunities
related to biodiversity
and ecosystems
Indicator number 14 Table #2 of
Annex 1
ESRS E4-2
Sustainable land / agriculture practices or policies
Paragraph 24 (b)
Phased-in disclosure Indicator number 11 Table #2 of
Annex 1
Sustainable oceans / seas practices or policies
Paragraph 24 (c)
Not material Indicator number 12 Table #2 of
Annex 1
Policies to address deforestation
Paragraph 24 (d)
Phased-in disclosure Indicator number 15 Table #2 of
Annex 1
ESRS E5-5
Non-recycled waste
Paragraph 37 (d)
Waste Indicator number 13 Table #2 of
Annex 1
Hazardous waste and radioactive waste
Paragraph 39
Waste Indicator number 9 Table #1 of
Annex 1
ESRS 2 SBM-3 S1
Risk of incidents of forced labour
Paragraph 14 (f)
S1 Own workforce,
Interaction with strategy
and
business model
Indicator number 13 Table #3 of
Annex I
Risk of incidents of child labour
Paragraph 14 (g)
S1 Own workforce,
Interaction with strategy
and
business model
Indicator number 12 Table #3 of
Annex I
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS S1-1
Human rights policy commitments
Paragraph 20
Human Rights Policy Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex I
Due diligence policies on issues addressed by the fundamental
International Labour Organization Conventions 1 to 8
Paragraph 21
Human Rights Policy Delegated Regulation (EU) 2020/1816,
Annex II
Processes and measures for preventing trafficking in human beings
Paragraph 22
Human Rights Policy Indicator number 11 Table #3 of
Annex I
Workplace accident prevention policy or management system
Paragraph 23
Health and safety Indicator number 1 Table #3 of
Annex I
ESRS S1-3
Grievance / complaints handling mechanisms
Paragraph 32 (c)
SpeakUp Policy Indicator number 5 Table #3 of
Annex I
ESRS S1-14
Number of fatalities and number and rate of work-related
accidents
Paragraph 88 (b) and (c)
Health and safety Indicator number 2 Table #3 of
Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
Number of days lost to injuries, accidents, fatalities or illness
Paragraph 88 (e)
Health and safety Indicator number 3 Table #3 of
Annex I
ESRS S1-16
Unadjusted gender pay gap
Paragraph 97 (a)
Phased-in disclosure Indicator number 12 Table #1 of
Annex I
Delegated Regulation (EU) 2020/1816,
Annex II
Excessive CEO pay ratio
Paragraph 97 (b)
Compensation Indicator number 8 Table #3 of
Annex I
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS S1-17
Incidents of discrimination
Paragraph 103 (a)
Incidents, complaints and
severe human
rights impacts
Indicator number 7 Table #3 of
Annex I
Non-respect of UNGPs on Business and Human Rights and OECD
guidelines
Paragraph 104 (a)
Incidents, complaints and
severe human
rights impacts
Indicator number 10 Table #1 and
Indicator number 14 Table #3 of
Annex I
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818 Art 12 (1)
ESRS 2 SBM-3 S2
Significant risk of child labour or forced labour in the value chain
Paragraph 11 (b)
Phased-in disclosure Indicators number 12 and number
13 Table #3 of Annex I
ESRS S2-1
Human rights policy commitments
Paragraph 17
Phased-in disclosure Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
Policies related to value chain workers
Paragraph 18
Phased-in disclosure Indicator number 11 and number
4 Table #3 of Annex 1
Non-respect of UNGPs on Business and Human Rights principles
and OECD guidelines
Paragraph 19
Phased-in disclosure Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
Due diligence policies on issues addressed by the fundamental
International Labour Organization Conventions 1 to 8
Paragraph 19
Phased-in disclosure Delegated Regulation (EU) 2020/1816,
Annex II
ESRS S2-4
Human rights issues and incidents connected to its upstream and
downstream value chain
Paragraph 36
Phased-in disclosure Indicator number 14 Table #3 of
Annex 1
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS S3-1
Human rights policy commitments
Paragraph 16
Not material Indicator number 9 Table #3 of
Annex 1 and Indicator number 11
Table #1 of Annex 1
Non-respect of UNGPs on Business and Human Rights, ILO
principles and/or OECD guidelines
Paragraph 17
Not material Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S3-4
Human rights issues and incidents
Paragraph 36
Not material Indicator number 14 Table #3 of
Annex 1
ESRS S4-1
Policies related to consumers and end-users
Paragraph 16
Phased-in disclosure Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
Non-respect of UNGPs on Business and Human Rights and OECD
guidelines
Paragraph 17
Phased-in disclosure Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S4-4
Human rights issues and incidents
Paragraph 35
Phased-in disclosure Indicator number 14 Table #3 of
Annex 1
ESRS G1-1
United Nations Convention against Corruption
Paragraph 10 (b)
Gift, Entertainment and
Anti-bribery Policy
Indicator number 15 Table #3 of
Annex 1
Protection of whistleblowers
Paragraph 10 (d)
SpeakUp Policy Indicator number 6 Table #3 of
Annex 1
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Disclosure Requirement and related data point
Sustainability statement
section SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference
ESRS G1-4
Fines for violation of anti-corruption and anti-bribery laws
Paragraph 24 (a)
Incidents of corruption
or bribery
Indicator number 17 Table #3 of
Annex 1
Delegated Regulation (EU) 2020/1816,
Annex II)
Standards of anticorruption and anti-bribery
Paragraph 24 (b)
Prevention and detection
of corruption
and bribery
Indicator number 16 Table #3 of
Annex 1
105Suominen Annual Report 2025
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Information on the
separate financial
statements of the
parent company
Key ratios of the parent company
EUR thousand 2025 2024 2023
Net sales 24,128 28,363 23,264
Operating profit / loss -345 2,357 384
% of net sales -1.4 8.3 1.7
Net financial expenses -3,992 10,967 6,712
Profit / loss before
appropriations and income
taxes -4,337 13,325 7,096
Profit / loss for the period -3,673 8,226 6,017
Return on invested capital, % 2.9 4.3 3.5
Salaries -4,800 -4,382 -4,021
Average number of personnel 36 35 35
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 24.1
million (28.4) and operating profit / loss EUR -0.3
million (2.4). Net financial expenses were EUR -4.0
million (+11.0). Profit / loss for the period was EUR -3.7
million (8.2). There are no related party loans except
loans to other Suominen group companies.
In the financial year 2025, the parent company had
on average 36 (35) employees and at the end of the
year 36 (33) employees.
The parent company manages financing on behalf
of the Group companies. Receivables from Group
companies are presented in Note 13 of the parent
company’s financial statements.
Outlook
Suominen expects that its comparable EBITDA
(earnings before interest, taxes, depreciation and
amortization) in 2026 will improve from 2025. In 2025,
Suominen’s comparable EBITDA was EUR 12.6 million.
Proposal by the
Board of Directors for
the use of the profit
The loss of the financial year 2025 of Suominen
Corporation, the parent company of Suominen Group,
was EUR -3,673,120.27. The funds distributable as
dividends, including the loss for the period, were
EUR 15,122,312.95 and total distributable funds were
EUR 90,814,648.85.
The Board of Directors proposes that no dividend
shall be distributed for the financial year 2025 and that
the profit shall be transferred to retained earnings.
Events after the
reporting period
Proposals of the Shareholders’ Nomination
Board to the Annual General Meeting 2026
The Shareholders’ Nomination Board of Suominen
Corporation published on January 26, 2026 its
proposal on the number of the members, on the
composition, and on the Chair of the Board of
Directors to the Annual General Meeting.
The Nomination Board proposes to the Annual
General Meeting 2026 that the number of Board
members will be decreased from seven to six.
The Nomination Board proposes to the Annual
General Meeting that Andreas Ahlström, Gail Ciccione,
Nina Linander, Maija Joutsenkoski and Laura Remes
would be re-elected as members of the Board of
Directors and that Ville Vuori would be elected as a
new member of the Board of Directors.
Out of the current Board members, Björn Borgman,
is not available as a candidate for the Board of
Directors. Additionally, the current Chairman of the
Board, Charles Héaulmé, has decided to step out from
the Board of Directors due to his role as the President
& CEO of the Company.
Ville Vuori (b. 1973, B.Sc. (Mech. Eng.), eMBA, Finnish
citizen) currently acts as the Chairman of the Boards of
Incap Oyj and Aspocomp Oyj. Prior to that, he served
as the CEO of Kemppi Oy and Incap Oyj.
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
exceptions of Andreas Ahlström who acts currently
as the CEO of Ahlström Invest B.V. and Maija
Joutsenkoski, who acts as the Investment Director at
A. Ahlström Corporation. The largest shareholder of
Suominen Corporation, Ahlstrom Capital B.V., belongs
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to the same group of companies as Ahlström Invest
B.V. and A. Ahlström Corporation. The Nomination
Board proposes to the Annual General Meeting
that Ville Vuori be elected as the Chair of the Board
of Directors.
With regard to the election procedure for the
members of the Board of Directors, the Nomination
Board recommends that the 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 board member candidates possess the
required competences, has determined that the
proposed Board of Directors as a whole has the best
possible expertise for the company and that the
composition of the Board of Directors meets the 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 remains unchanged and
would be as follows: the Chair would be paid an annual
fee of EUR 74,000, the Deputy Chair an annual fee of
EUR 45,000 and other Board members an annual fee
of EUR 35,000. The Nomination Board also proposes
that the additional fee paid to the Chair of the Audit
Committee 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 are 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 2026 of the company is published.
Compensation for expenses will be paid in accordance
with the company’s valid travel policy.
The composition of the Nomination Board
The members of the Nomination Board, as of
September 2, 2025, are Jyrki Vainionpää (President
& CEO of A. Ahlström Corporation) as a member
appointed by Ahlstrom Capital B.V., Mikael Etola
(CEO of Etola-Yhtiöt) as a member appointed by
Etola Group Oy and Ville Vuori (Board Professional)
as a member appointed by Oy Etra Invest Ab. Charles
Héaulmé, Chair of Suominen’s Board of Directors,
serves as the fourth member of the Nomination Board.
Jyrki Vainionpää acts as the Chair of the Nomination
Board.
All of the proposals made by the Nomination Board
were unanimous, except that Charles Héaulmé and
Ville Vuori abstained from participating in the decision
making relating to the Nomination Board’s proposal for
the Chair of the Board.
The Board of Directors of Suominen Corporation will
include the proposals submitted by the Nomination
Board to the Notice of the Annual General Meeting of
Suominen which will be published at a later date. The
Annual General Meeting of Suominen Corporation is
scheduled to be held on April 15, 2026.
Commencement of a new plan period in the
share-based Long-Term Incentive Plan for
management and key employees
Based on the existing share-based Long Term
Incentive Plan for management and key employees,
communicated as a stock exchange release on
February 6, 2024, Suominen disclosed on January
29, 2026, that the Board of Directors of Suominen
Corporation has decided on the commencement of a
new plan period covering the years 2026–2028.
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 criteria of the performance period
2026–2028 are tied to Absolute Total Shareholder
Return during the years 2026–2028 (weight 40%),
Earnings Before Interests and Taxes (EBIT) in fiscal
year 2028 (weight 40%), and the company’s target
to improve its raw material efficiency (weight 20%),
measured for fiscal year 2028. 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 1,500,000
shares of Suominen, including also the proportion to
be paid in cash. The target group in the performance
period 2026–2028 consists of 28 key employees,
including the President & CEO and other members of
the Suominen Leadership 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 Suominen Leadership Team member must
hold 50% of the received shares until the value of
the Suominen Leadership Team member’s total
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shareholding in Suominen equals to 50% of the
member’s annual gross salary for the calendar year
preceding the payment of the reward. Respectively,
the President & CEO must hold 50% of the received
shares until the value of the President & CEO’s total
shareholding in Suominen equals to the value of the
President & CEO’s annual gross salary for the calendar
year preceding the payment of the reward. Such
number of Suominen shares must be held as long as
the membership in the Suominen Leadership Team or
the position as the President & CEO continues.
Amendments to the ongoing performance
periods
The Board of Directors has also resolved on
amendments to the performance criteria for the
ongoing performance periods 2024–2026 and
2025–2027. The Board has resolved that for both the
performance periods, raw material efficiency will be
measured based on the final year of the respective
performance period (previously based on the first year
of the performance period).
Three-year profitability improvement
program and new operating model
Suominen announced on January 29, 2026 that is
was launching a three-year program to improve the
company’s profitability. The Full Potential Program
targets delivering 10% EBITDA and a 2x–3x leverage
ratio (net debt/EBITDA) by 2028. The program will
involve an estimated investment of approximately
EUR 30 million over the three years, of which
transformation costs are estimated at EUR 10 million
and capital expenditures to upgrade manufacturing
capabilities around EUR 20 million. The Full Potential
Program does not include investment in capacity
expansion.
Suominen also introduced a new functional
operating model, Effective February 1, 2026,
tostrengthen focus on strategic priorities, sharpen
accountability across the organization, and
create a tighter connection between customer
needs, technology development, and operational
performance.
In the new model, commercial functions are brought
together to reinforce focus on growth and business
development and ensuring strong strategic alignment
between R&D and customer management. The sales
organization will build deep global expertise while
maintaining a strong local presence to serve customers
effectively across all markets, under the leadership of
the Chief Commercial & Technology Officer (CCTO).
The role of Chief Operating Officer (COO) is
being broadened to command all factories, safety,
manufacturing engineering, procurement, and supply
chain. With this change, Suominen aims to strengthen
operational reliability and output by sharpening its
focus on manufacturing performance and ensuring
systematic deployment of best practices, continuous
improvement, and harmonized processes.
The changes aim to strengthen profit and loss
accountability, enhance execution discipline, and
improve decision-making across both operations and
commercial functions.
Changes in the Suominen Leadership Team
To facilitate Suominen’s transformation and transition
into the new operating model, Suominen has
appointed Kimmo Raunio (M. Sc. (Tech), Industrial
Engineering and Management) as the CFO and
member of the Suominen Leadership Team latest as of
June 1, 2026.
Until then, Suominen’s CFO Janne Silonsaari will
continue in his current role. Janne Silonsaari has
decided to leave the company and will support the
transition until mid-June 2026.
Kimmo Raunio is an experienced finance
executive with a strong track record in the industrial
manufacturing sector and brings with him executive
level experience of driving turnaround and
performance improvement initiatives at both group
and site levels. Kimmo Raunio joins Suominen from
Fortaco Group, where he has worked for 13 years in
various finance roles, latest as CFO and Deputy CEO.
Markku Koivisto, currently EVP, EMEA and CTO,
has been appointed Chief Commercial & Technology
Officer.
Mark Ushpol, EVP, Americas, will step down from the
Suominen Leadership Team and serve for six months
as EVP, Strategic projects.
Marika Väkiparta, LL.M., currently Suominen VP,
Business Transformation, has been appointed Chief
Strategy & Transformation Officer and interim General
Counsel.
On February 26, 2026, Suominen announced that
Minna Rouru, Chief People & Communications Officer,
and a member of the Suominen Leadership Team
leaves the company at the latest on August 26, 2026,
to take on a role in another company.
Suominen Leadership Team
as of February 1, 2026:
- Charles Héaulmé, President & CEO
- Janne Silonsaari, CFO (until latest May 31, 2026)
- Kimmo Raunio, CFO (latest as of June 1, 2026)
- Markku Koivisto, Chief Commercial and Technology
Officer
- Francois Guetat, Chief Operating Officer
- Minna Rouru, Chief People & Communications
Officer
- Marika Väkiparta, Chief Strategy & Transformation
Officer and interim General Counsel
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Note December 31, 2025 December 31, 2024
ASSETS
Non-current assets
Goodwill 5 15,496 15,496
Intangible assets 6 1,150 2,754
Property, plant and equipment 7 124,844 120,356
Right-of-use assets 21 8,617 11,003
Equity instruments 9 421 421
Other non-current receivables 11 155 158
Deferred tax assets 26 3,595 2,269
Total non-current assets 154,278 152,457
Current assets
Inventories 10 40,443 47,470
Trade receivables 11 38,077 62,477
Other current receivables 11 6,869 6,119
Assets for current tax 26 660 514
Cash and cash equivalents 32,064 41,340
Total current assets 118,112 157,919
TOTAL ASSETS 272,391 310,376
Consolidated financial statements (IFRS) 2025
Consolidated statement of financial position
EUR thousand
Translation, non-official version
109Suominen Annual Report 2025
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Note December 31, 2025 December 31, 2024
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 553 436
Exchange differences -6,751 3,312
Retained earnings -9,933 1,626
Total equity attributable to owners of the parent 96,102 117,608
Liabilities
Non-current liabilities
Deferred tax liabilities 26 4,278 7,990
Liabilities from defined benefit plans 23 173 189
Non-current provisions 15 579 588
Non-current lease liabilities 14 6,829 9,277
Other non-current interest-bearing liabilities 14 49,825 −
Debenture bonds 14 49,765 49,606
Total non-current liabilities 111,448 67,650
Note December 31, 2025 December 31, 2024
Current liabilities
Current provisions 15 − 178
Current lease liabilities 14 2,837 2,877
Other current interest-bearing liabilities 14 0 40,000
Liabilities for current tax 26 5 214
Trade payables and other current liabilities 16 61,998 81,849
Total current liabilities 64,840 125,118
Total liabilities 176,289 192,768
TOTAL EQUITY AND LIABILITIES 272,391 310,376
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Note January 1 – December 31, 2025 January 1 – December 31, 2024
Net sales 18 412,433 462,318
Cost of goods sold -386,153 -432,589
Gross profit 26,280 29,729
Other operating income 20 2,619 4,952
Sales, marketing and administration expenses -31,503 -32,068
Research and development expenses -2,811 -4,023
Other operating expenses 20 -489 152
Operating profit / loss -5,904 -1,257
Financial income 25 723 1,386
Financial expenses 25 -6,116 -6,432
Exchange rate and fair value gains and losses 25 -2,074 960
Net financial expenses -7,467 -4,086
Profit / loss before income taxes -13,370 -5,343
Income taxes 26 1,300 53
Profit / loss for the period -12,070 -5,290
Earnings per share, EUR 28
Basic -0.21 -0.09
Diluted -0.21 -0.09
Note January 1 – December 31, 2025 January 1 – December 31, 2024
Profit / loss for the period -12,070 -5,290
Other comprehensive income:
Other comprehensive income that will be
subsequently reclassified to profit or loss:
Exchange differences -11,513 3,949
Income taxes related to other comprehensive income 1,449 -749
Total -10,064 3,201
Other comprehensive income that will not be
subsequently reclassified to profit or loss:
Remeasurements of defined benefit plans 23 5 -11
Total 5 -11
Total other comprehensive income -10,059 3,190
Total comprehensive income for the period -22,129 -2,100
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, 2025 11,860 24,681 75,692 3,312 436 1,626 117,608
Profit / loss for the period − − − − − -12,070 -12,070
Other comprehensive income − − − -10,064 − 5 -10,059
Total comprehensive income − − − -10,064 − -12,065 -22,129
Share-based payments − − − − − 562 562
Conveyance of treasury shares − − − − − 61 61
Transfers − − − − 117 -117 −
Equity December 31, 2025 11,860 24,681 75,692 -6,751 553 -9,933 96,102
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, 2024 11,860 24,681 75,692 111 316 12,251 124,912
Profit for the period − − − − − -5,290 -5,290
Other comprehensive income − − − 3,201 − -11 3,190
Total comprehensive income − − − 3,201 − -5,301 -2,100
Distribution of dividend − − − − − -5,769 -5,769
Share-based payments − − − − − 511 511
Conveyance of treasury shares − − − − − 54 54
Transfers − − − − 120 -120 −
Equity December 31, 2024 11,860 24,681 75,692 3,312 436 1,626 117,608
Equity is disclosed in Note 13.
Consolidated statement of changes in equity
EUR thousand
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Note January 1−December 31, 2025 January 1−December 31, 2024
Cash flow from operations
Profit / loss for the period -12,070 -5,290
Total adjustments to profit for the period 29 23,977 21,244
Cash flow before changes in net working capital 11,906 15,954
Change in net working capital 8,348 -5,931
Financial items -6,123 -4,975
Income taxes -1,913 -1,191
Cash flow from operations 12,218 3,857
Cash flow from investments
Investments in property, plant and equipment and
intangible assets 6, 7 -25,588 -14,391
Sales proceeds from property, plant and equipment and
intangible assets 120 114
Cash flow from investments -25,468 -14,277
Consolidated statement of cash flows
EUR thousand
Note January 1−December 31, 2025 January 1−December 31, 2024
Cash flow from financing
Drawdown of non-current interest-bearing liabilities 50,000 −
Drawdown of current interest-bearing liabilities 14 88,000 160,000
Repayment of current interest-bearing liabilities 14 -128,000 -160,000
Repayment of lease liabilities 21 -2,848 -3,312
Distribution of dividends 13 − -5,769
Cash flow from financing 7,152 -9,081
Change in cash and cash equivalents -6,098 -19,501
Cash and cash equivalents at the beginning of the
period 41,340 58,755
Effect of changes in exchange rates -3,177 2,086
Change in cash and cash equivalents -6,098 -19,501
Cash and cash equivalents at the end of the period 32,064 41,340
Net working capital declined in the financial year 2025, driven by the reduced scale of the Group’s operations and
targeted efficiency measures applied to selected working capital items.
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NOTE 1 Material accounting
policy information –
consolidated financial
statements
Basic information
Suominen Corporation is a public limited liability
company organized under the laws of the Republic
of Finland and domiciled in Helsinki, Finland with
registered address Keilaranta 13 A, 02150 Espoo,
Finland. Suominen’s shares are publicly traded in the
Nasdaq Helsinki Ltd. (Mid Cap). Suominen Corporation
is the parent company of the Group. The Group
manufactures nonwovens mainly for consumer goods
companies.
The Board of Directors of Suominen Corporation
has in its meeting on 10 March, 2026, approved these
financial statements to be published. According
to the Finnish Limited Liability Companies Act, the
shareholders have a possibility to approve or reject or
make a decision on altering the financial statements in
a General Meeting to be held after the publication of
the financial statements.
Basis for presentation
The consolidated financial statements of Suominen
Group are prepared in accordance with IFRS
Accounting Standards, including International
Accounting Standards (IAS) and Interpretations issued
by the International Financial Reporting Interpretations
Committee (SIC and IFRIC). IFRS Accounting Standards
are standards and their interpretations adopted in
accordance with the procedure laid down in regulation
(EC) No 1606/2002 of the European Parliament and
of the Council. The Notes to the Financial Statements
are also in accordance with the Finnish Accounting
Act and Ordinance and the Finnish Limited Liability
Companies Act.
The consolidated financial statements include the
financial statements of Suominen Corporation and its
subsidiaries. The functional and reporting currency of
the parent is euro, which is also the reporting currency
of the consolidated financial statements. Functional
Notes to the consolidated financial statements
currencies of subsidiaries are determined by the
primary economic environment in which they operate.
The financial year of Suominen Group as well as of
the parent and subsidiaries is the calendar year ending
December 31.
The financial statements have been prepared under
the historical cost convention except as disclosed in
the accounting policies.
The figures in Suominen’s consolidated financial
statements are mainly presented in EUR thousands.
Due to rounding differences the figures presented
in tables do not necessarily add up to the totals of
the tables.
New accounting standards
New or amended accounting standards, annual
improvements or interpretations applicable from
January 1, 2025:
- Lack of Exchangeability, Amendments to IAS 21
The Effects of Changes in Foreign Exchange Rates,
applicable from January 1, 2025. The amendments
specify how an entity should assess whether a
currency is exchangeable to another currency and
how it should determine a spot exchange rate when
exchangeability is lacking. As Suominen conducts
business only in currencies which are exchangeable,
the amendments have no effect on Suominen.
Other new or amended accounting standards,
improvements or annual improvements applicable
from January 1, 2025, were not material for
Suominen Group.
New and amended IFRS accounting standards
and IFRIC interpretations published but
mandatory from January 1, 2026, or later:
- Classification and Measurement of Financial
Instruments, Amendments to IFRS 9 Financial
Instruments and IFRS 7 Financial Instruments:
Disclosures, applicable from January 1, 2026. The new
requirements will be applied retrospectively with an
adjustment to opening retained earnings.
The amendments clarify the derecognition of
financial liabilities, how to assess the contractual cash
flow characteristics of financial assets that include
ESG-linked or similar contingent features and the
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treatment of non-recourse assets and contractually
linked instruments. The amendments also introduce
an accounting policy option to derecognize financial
liabilities that are settled through an electronic
payment system before settlement date if certain
conditions are met.
The amendments require additional disclosures for
financial assets and liabilities with contractual terms
that reference a contingent event, including those that
are ESG-linked, and equity instruments classified as fair
value through other comprehensive income.
The amendments have no material effect on the
notes of equity instruments classified as fair value
through other comprehensive income.
Otherwise, the amendments have no material effect
on Suominen.
- IFRS 18 Presentation and Disclosure in Financial
Statements, applicable from January 1, 2027. Also, the
consequential amendments to other IFRS Accounting
Standards due to application of IFRS 18 are effective
from January 1, 2027. The standard will be applied
retrospectively.
The standard will introduce new categories
and subtotals in the statement of profit or loss. It
also requires disclosure of management-defined
performance measures (MPM) in the financial
statements and includes new requirements for the
location, aggregation and disaggregation of financial
information. IFRS 18 will replace IAS 1 Presentation in
Financial Statements.
In accordance with the new standard, an entity is
required to classify all income and expenses in the
statement of profit or loss into one of five categories:
operating, investing, financing, income taxes and
discontinued operations. IFRS 18 also requires an entity
to present in its statement of profit or loss subtotals
and totals for operating profit or loss, profit or loss
before financing and income taxes and profit or loss.
IFRS 18 introduces the concept of management-
defined performance measures (MPM) which it
defines as a subtotal of income and expenses that
an entity uses in public communications outside
financial statements in order to communicate the
management’s view of the financial performance of
the entity. IFRS 18 requires disclosure of information
about all the entity’s MPMs in a single note to the
financial statements and requires several disclosures to
be made of each MPM, including the calculation of the
MPM as well as reconciliation to the most comparable
subtotal specified by IFRS accounting standards.
IFRS 18 also differentiates between presenting
information in the primary financial statements and
disclosing it in the notes and introduces a principle
for determining the location of information based on
identified roles of the primary financial statements
and the notes. The standard requires aggregation and
disaggregation of information to be performed with
reference to similar and dissimilar characteristics.
There is also new guidance for determining meaningful
descriptions or labels for items that are aggregated in
the financial statements.
The application of IFRS 18 will also amend IAS
7 Statement of Cash Flows. The standard amends
the starting point of determining cash flows from
operations under the indirect method to operating
profit or loss. The optionality around classification
of cash flows from dividends and interests in the
statement of cash flows has also largely been
removed.
There are also some consequential changes to other
IFRS Accounting Standards, of which the most material
to Suominen is the amendment of IAS 34 Interim
Financial Reporting, which will require disclosure of
MPMs also in the interim reports.
The new standard will change the definition of
operating profit (EBIT). The 0perating profit or loss
of Suominen as defined in IFRS 18 will be lower
than the operating profit or loss calculated before
the application of the standard, as certain expenses
currently included in financial items will be included in
the operating category before operating profit or loss.
In addition, some income items included currently in
financial items will be, in accordance with the new
standard, included in the investing category. After the
application of IFRS 18 standard, the financing category
will include mainly interest and other expenses related
to interest-bearing liabilities.
Also, the profit or loss before income taxes will
change slightly, as interest income and expenses
related to income taxes will be included in the income
tax category.
Other new or amended accounting standards,
improvements or annual improvements applicable
from January 1, 2026, or later are not material for
Suominen Group.
Consolidation principles
The consolidated financial statements include the
parent and its subsidiaries. Subsidiaries are companies
in which the parent has, based on its holding,
more than half of the voting rights directly or via its
subsidiaries or over which it otherwise has control.
The Group has control over an entity when it has a
participation in the entity and is exposed to or has the
right to its variable revenues and can influence those
revenues by using its control over the entity.
Divested subsidiaries are included in the
consolidated financial statements until the control
is lost, and companies acquired during the reporting
period are included from the date upon which
control was transferred to Suominen. Acquisitions of
subsidiaries are accounted for under the acquisition
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method under which the purchase consideration
is allocated to the acquired identifiable assets and
liabilities assumed, which are measured at fair value
upon the acquisition, and the residual is recognized as
goodwill. The transaction costs related to a business
combination are recognized in profit or loss.
All intra-Group transactions are eliminated as part
of the consolidation process. Unrealized losses are
eliminated only to the extent that there is no evidence
of impairment.
Foreign subsidiaries
In the consolidated financial statements, the
statements of profit or loss, statements of
comprehensive income and statements of cash flows
of foreign subsidiaries have been translated into euros
using the average exchange rates of the reporting
period and the statements of financial positions have
been translated using the closing exchange rates at the
end of the reporting period.
On the disposal of all or part of a foreign subsidiary,
the cumulative amount or proportionate share of the
exchange difference is reclassified from equity to profit
or loss as a reclassification item in the same period in
which the gain or loss on disposal is recognized.
Transactions in foreign currencies and
currency differences
In their own day-to-day accounting the Group
companies translate transactions in foreign currencies
into their own reporting currency at the exchange
rates prevailing on the dates of the transactions. At the
end of the reporting period, the unsettled balances
of foreign currency transactions are measured at the
exchange rates prevailing at the end of the reporting
period. In Suominen, foreign exchange gains and
losses arising from trade receivables are entered as
adjustments of net sales and foreign exchange gains
and losses related to trade payables are recorded
as adjustments of costs of goods sold. Suominen
recognizes foreign exchange gains and losses arising
from financial items as financial income and expenses.
The exchange differences arising from translating
the statements of profit or loss, statements of
comprehensive income and statements of financial
position into euro using the different exchange rates
are recognized as other comprehensive income and
included in equity in cumulative exchange difference.
Exchange differences arising from the translation of
the net investments in foreign subsidiaries in non-euro
area are also recognized in other comprehensive
income and included in equity in cumulative exchange
differences.
Some loans granted to the subsidiaries are in
substance part of a net investment in the subsidiary,
as settlement of the loan is not likely to occur in
the foreseeable future. Suominen recognizes the
exchange differences arising from those loans in other
comprehensive income and in exchange differences
in equity.
Research and Development
Expenditure on development is recognized in
profit or loss. Expenditure on product and process
development is not capitalized as no separate assets
are developed in the development activities or future
economic benefits arising from the assets cannot be
reliably assessed.
Software-as-a-Service agreements
Suominen recognizes the expenses arising from
software-as-a-service (SaaS) arrangements mainly
in profit or loss as expenses arising from service
contracts. However, if the contract contains a lease,
either the whole arrangement or the lease component
of the arrangement are recognized in accordance
with IFRS 16. If the arrangement provides a resource
that Suominen can control, an intangible asset in
accordance with IAS 38 will be recognized.
Government grants
When government or other grants are received to
compensate for expenses, they are recognized in profit
or loss in other operating income in the same periods
in which the corresponding expenses are incurred.
When the grants are related to assets, the grants
are recognized as deferred income and recognized
as other operating income during the useful life of
the asset.
Related parties
Suominen Group’s related parties include the parent of
the Group (Suominen Corporation) and subsidiaries. In
addition, the related parties of Suominen include the
members of the Board of Directors, President & CEO
and the members of the Executive Team as well as
their family members and their controlled companies.
In addition, shareholders who have a significant
influence in Suominen through share ownership
are included in related parties. Suominen has no
associated companies or joint ventures.
In its transactions with related parties Suominen
follows the same commercial terms as in transactions
with third parties.
No loans, guarantees or other collaterals have been
given on behalf of related parties, with the exception
of the subsidiaries.
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Dividends and other distribution of funds
Dividends or other distribution of funds proposed
by the Board of Directors are not recognized in the
financial statements until they have been approved by
the shareholders at the Annual General Meeting.
Audit
Quarterly information as well as interim reports are
not audited.
Other accounting principles
Accounting principles related to assets, liabilities
and line items in the statement of profit or loss are
presented in the disclosure information related to
each item.
NOTE 2 Accounting estimates
and judgements
The preparation of financial statements in conformity
with IFRS requires management to make accounting
estimates. Accounting estimates are monetary
amounts in financial statements that are subject to
measurement uncertainty. In developing accounting
estimates the management uses judgements or
assumptions. Measurement techniques are used in
developing an accounting estimate. The techniques
can include estimation and valuation techniques.
An accounting estimate may have to be changed
if changes occur in the circumstances on which the
accounting estimate was based or as a result of new
information, new developments or more experience.
The estimates and assumptions affect the reported
amounts of assets and liabilities, the amounts of
contingent assets and liabilities at the end of the
reporting period and the recognized amounts of
revenues and expenses during the reporting period.
Actual results may differ from these estimates.
The following items include accounting estimates:
impairment testing of assets, especially of goodwill;
useful lives of intangible assets and property, plant
and equipment; measurement of inventories and
trade receivables; estimation of expected credit losses
of trade receivables; recognition and measurement
of deferred taxes and estimates of the amount and
probability of provisions.
The carrying amounts of the lease liabilities and
right-of-use assets are affected, among other things,
by the management’s estimates made of the lease
terms and possible renewals of the lease agreements.
Estimates and judgements are continuously
evaluated and are based on historical experience
and other factors, including expectations of future
events, that are believed to be reasonable under the
circumstances.
The direct impact of the war in Ukraine to
Suominen’s business is minor as Suominen has no
customers nor suppliers in Russia, Belarus or Ukraine.
Suominen as a company continues to be mostly
affected by the indirect economic impacts of the war.
The risks related to climate change are included
in Note 5 (Goodwill), Note 7 (Property, plant and
equipment) as well as in Note 18 (Revenue from
contracts with customers).
Critical accounting estimates and judgements are
presented in the disclosure information related to
each item.
NOTE 3 Financial risk
management
Suominen is exposed to customary financial risks
relating to its global businesses such as foreign
exchange and interest rate risks, counterparty
risks, funding and liquidity risks and refinancing
and credit risks. The treasury policy approved by
Suominen Corporation’s Board of Directors defines
the authorities, responsibilities and principles to be
followed in the Group. Financial risk management is
centralized within Suominen Group Treasury which
acts as an in-house bank providing financial services
for subsidiaries within the Group. Financial risk
management is governed by the treasury policy. The
policy includes principles and risk limits relating to debt
structure, liquidity, counterparties, bank relations and
interest rate and foreign exchange risk management.
In accordance with the treasury policy, the President
& CEO approves all major funding operations and the
main principles to be followed when hedging financial
risks. The CFO is responsible for ensuring that the
policy is complied with throughout the Group, and
for individual financial operations concerning funding,
managing liquidity and financial risks.
Foreign exchange risk
Suominen Group operates internationally and is
therefore exposed to transaction and translation
risks arising from fluctuations in foreign exchange
rates which may have an effect on profit or loss and
the financial position of the Group. Transaction risks
mainly arise from cash flows generated by the sale
of products and the purchase of materials used in
production. Translation risks arise from converting
the statements of profit or loss and the statements
of financial position of non-euro subsidiaries as well
as other currency-denominated assets and liabilities
into the Group’s functional currency euro. The aim
of the Group’s foreign exchange risk management
is to hedge earnings from operations and to avoid
exchange rate volatility in cash flows, profit or loss
and in financial position. The development of the
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USD/EUR exchange rate throughout the financial year
2025 had a direct impact on the change in translation
differences recognized in the Statement of Changes
in Equity.
In addition to the US dollar, which generates the
most significant currency impact on Suominen, the
Brazilian real also affects the Group’s foreign exchange
risk.
The foreign exchange transaction exposure
comprises committed and estimated currency cash
flows for the next 12 months. The transaction risk
arises mainly from the USD transactions in the euro
area and in Brazil as well as from euro transactions in
the USA and Brazil. The transaction risk related to USD
arises both from operational and financial transactions.
The exchange rate risks are hedged case by case using
both derivatives and terms of sales and purchasing
contracts.
Common derivative contracts can be used in
hedging to some extent, as their pricing can be verified
on the markets. Suominen does not apply hedge
accounting in currency hedging for the transaction
risks. Changes in fair values of currency hedging
instruments are recognized in profit or loss.
Transaction exposure 2025 Transaction exposure 2024Hedged with Hedged with EUR thousand 12 months' cash flowcurrency forwards 12 months' cash flowcurrency forwardsUSD/EUR -16,981 − 2,349 −EUR/BRL -84 − -732 −USD/BRL -8,936 − -11,909 −
Translation exposure 2025 against EURCash and cash equivalents and internal Equity of EUR thousand Internal loan receivablesinterest-bearing liabilitiesforeign subsidiaries Open currency exposureBRL − 2,092 11,208 13,305USD 55,319 25,608 44,997 125,924Translation exposure 2024 against EURCash and cash equivalents and internal Equity of EUR thousand Internal loan receivablesinterest-bearing liabilitiesforeign subsidiaries Open currency exposureBRL − 2,656 11,339 13,995USD 62,566 28,310 53,913 144,789
The consolidated transaction exposure at the end of the reporting period is presented in the table below:
Correspondingly, the translation exposure at the end of the reporting period was as follows:
Internal loan receivables consist of loan receivables
granted by Suominen Corporation to subsidiaries
outside of the euro area. The loan receivables from
subsidiaries denominated in USD are in substance
equity as the repayment is not anticipated in the
foreseeable future. These loan receivables amounted
to USD 65.0 million, equaling EUR 55.3 million at the
end of the reporting period. The exchange differences
from these loan receivables are recognized in
exchange differences in other comprehensive income
as they are in substance exchange differences arising
from equity. Exchange rate differences arising from
other internal and external interest-bearing liabilities
are recognized in profit or loss.
Sensitivity analysis of financial instruments
In the sensitivity analysis in the table below, the
financial instruments include intra-Group currency
denominated loan receivables. The sensitivities of
the currency rates at the end of the reporting period
are estimated based on the actual volatility of the
currencies over the past 12 months. The exchange rate
sensitivity is calculated for the following 12 months by
using the rates at the end of the reporting period. The
change in the exchange rate is the change of the euro
rate against the US dollar rate.
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Interest rate risk
Suominen is exposed to interest rate risk when it funds
its operations with euro or currency denominated
debt. The risk arises from the repricing of floating
rate debt and with the raising of new floating rate
debt. A fixed rate debt is subject to fair value risk.
The aim of the interest rate risk management is to
bring predictability to interest expenses by keeping
the duration within the agreed limits with an optimal
mix of fixed and floating rate debt. Suominen’s loan
portfolio can comprise both floating and fixed interest
rate loans. The loans drawn from the syndicated credit
facility are floating rate loans. Suominen’s Board of
Directors has determined the interest rate structure of
the loan portfolio and the range in which it can vary.
The average interest duration can vary between 12 and
48 months. At the end of 2025, the duration excluding
the lease liabilities was 23 months (17 months in 2024).
At the end of the reporting period the carrying
amount of the Group’s loans with fixed interest
rates was EUR 49.8 million (EUR 49.6 million) and
EUR 49.8 million (EUR 40.0 million) with floating
interest rates. Lease liabilities were EUR 9.7 million
(EUR 12.2 million).
The sensitivity of interest rate risk is calculated as the
effect of a 0.5 percentage point shift in the interest rate
curve during one year on floating interest rate loans.
2025A. Effect on profit or loss B. Effect on equity after tax A. Effect on profit or loss B. Effect on equity after tax EUR thousand Currency strengthens %after tax(excluding A) Currency weakens %after tax(excluding A)USD/EUR 8.1 − 3,603 -8.1 − -3,6032024A. Effect on profit or loss B. Effect on equity after tax A. Effect on profit or loss B. Effect on equity after tax EUR thousand Currency strengthens %after tax(excluding A) Currency weakens %after tax(excluding A)USD/EUR 6.2 − 3,077 -6.2 − -3,077
2025EUR Currency strengthens / Effect on 12 months' currency Effect on hedging thousandweakens %cash flowinstruments Net effect after taxUSD/EUR +8 / -8 -1,382 / 1,382 − -1,106 / 1,1062024EUR Currency strengthens / Effect on 12 months' currency Effect on hedging thousandweakens %cash flowinstruments Net effect after taxUSD/EUR +6 / -6 144 / -144 − 115 / -115
Sensitivity analysis of net currency flows
The management has assessed the sensitivity of the
estimated net currency cash flows for 12 months. If
hedging instruments are in use, the compensating
effect of the hedging instruments is taken into
account. The net effect from the change in the
USD exchange rate on profit or loss after taxes in
2025 is estimated to be EUR - / + 1,106 thousand
(EUR + / - 115 thousand). Sensitivities of exchange
rates at the end of the reporting period are estimated
based on the actual volatility of the currencies over
the past 12 months. The exchange rate sensitivity is
calculated for the following 12 months by using the
currency rates at the end of the reporting period.
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The maximum credit risk arising from trade receivables
equals the carrying amount of the trade receivables.
The determination of the credit risk related to trade
receivables is disclosed in Note 11.
The direct impact of the war in Ukraine to
Suominen’s business is minor as Suominen has no
customers in Russia, Belarus or Ukraine.
The Group has agreed on a supply chain financing
program which covers approx. 15% of the sales at the
end of the reporting period. In addition, the Group
has other non-recourse factoring programs. In
accordance with the supply chain financing agreement
and the terms of the factoring programs, the Group
has transferred the rights and responsibilities of these
receivables to the counterparty of the agreement.
The Board of Directors of Suominen has approved a
counterpart list of companies and financial institutions
with good credit ratings. These companies are allowed
counterparts in investment activities and derivative
contracts. The amount which can be invested in a
single counterpart is capped. Liquid funds can be
invested with reputable banks with sufficient credit
ratings or in commercial papers offering high liquidity
and credit ratings. The Group’s maximum exposure to
credit risk is equal to the carrying amount of financial
assets at the end of the reporting period.
Liquidity and refinancing risk
Suominen aims to use different sources of funding.
With its house banks Suominen has long and
trustworthy relations and acquires advisory and other
services from them. Refinancing risk is managed by
diversifying loan maturities.
Suominen entered in June 2025 into a single-
currency syndicated credit facility agreement which
consists of a EUR 50 million term loan and a EUR 50
million revolving credit facility with a maturity of three
years with a one-year extension option. The lenders
for the facility are Danske Bank A/S and Nordea Bank
Abp. The new credit facility includes leverage ratio and
gearing as financial covenants.
The new credit facility replaced the EUR 100
million syndicated revolving credit facility agreement
of Suominen provided by Danske Bank A/S and
Nordea Abp.
The financial covenants of these loans are regularly
monitored. In order to ensure that the covenant
conditions are met, Suominen has agreed with the
lenders about amendment of the covenant thresholds.
At the end of the reporting period the cash and cash
equivalents of the Group were EUR 32.1 million
(EUR 41.3 million). Cash and cash equivalents have not
been included in the sensitivity analysis.
Credit risk
The most significant individual credit risks relate to
trade receivables from international companies mainly
with high credit ratings. The credit policy approved
by the Board of Directors governs the principles
to be followed when granting credit to customers
and the responsibilities of the organization in this
area. Credit is granted to customers after a credit
approval process has been completed. The credit
exposure of customers is reported at least once a
month to the persons responsible for sales. Expected
credit losses and reversals of credit losses of trade
receivables (net) recognized in profit or loss totaled
EUR +128 thousand in 2025 (EUR +285 thousand). The
ageing structure of the trade receivables is disclosed
in Note 11 to the consolidated financial statements.
Management has prepared cash flow forecasts and
based on the current projection, including profitability
improvement actions, the company expects to meet
all covenant conditions and maintain sufficient liquidity
for the 12 months following the reporting date.
In June 2021, Suominen issued a senior unsecured
bond of EUR 50 million. The six-year bond matures
on June 11, 2027, and it carries a coupon interest
of 1.50%. The bond is listed on the official list of
Nasdaq Helsinki Ltd.
The average maturity of the committed facility
agreements was 2.5 years (1.5 years) at the end of the
reporting period. At the end of the reporting period the
unused revolving credit facility was EUR 47 million.
Suominen Group Treasury has established several
cash pooling structures with Group’s house banks in
order to manage the liquidity of the Group.
The maturity of financial liabilities is presented as
undiscounted cash flows in the following table. The
table includes both interest payments and repayments
of capital.
2025 2024Change in interest rate, Change in interest rate, EUR thousandpercentage points Effect on profit after taxpercentage points Effect on profit after taxFloating rate loans +0.5 / -0.5 -200 / +200 +0.5 / -0.5 -160 / +160
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Maturity analysis of financial liabilities 2025EUR thousand Falling dueCarrying Contractual Less than Financial liabilitiesamountcash flows6 months 6−12 months 1−2 years 2−5 years After 5 yearsDebentures 49,765 51,500 750 − 50,750 − −Lease liabilities 9,666 10,821 1,693 1,602 2,881 3,807 837Other interest-bearing liabilities 49,825 57,606 1,521 1,521 3,042 51,521 −Other financial liabilities 312 312 312 − − − −Trade payables 49,192 49,298 49,298 − − − −Total 158,761 169,537 53,575 3,123 56,674 55,329 837
Maturity analysis of leasing obligations arising from operative leasing contracts is disclosed in Note 21.
Maturity analysis of financial liabilities 2024EUR thousand Falling dueCarrying Contractual Less than Financial liabilitiesamountcash flows6 months 6−12 months 1−2 years 2−5 years After 5 yearsDebentures 49,606 52,250 750 − 750 50,750 −Lease liabilities 12,154 13,844 1,766 1,727 3,252 5,297 1,802Other interest-bearing liabilities 40,000 40,556 40,556 − − − −Other financial liabilities 120 120 120 − − − −Trade payables 67,654 67,654 67,654 − − −Total 169,534 174,424 110,847 1,727 4,002 56,047 1,802
Maturity analysis of leasing obligations arising from operative leasing contracts is disclosed in Note 21.
Falling dueLess than 6 Contingent liabilities Totalmonths 6−12 months 1−2 years 2−5 yearsGuarantees 1,088 − − − 1,088Commitments to leases not yet commenced 458 458 − − −Contractual commitments to acquire property, plant and equipment 3,669 3,669 − − −Total 5,215 4,127 − − 1,088
Falling dueLess than 6 Contingent liabilities Totalmonths 6−12 months 1−2 years 2−5 yearsGuarantees 1,921 − − 114 1,807Commitments to leases not yet commenced 274 23 23 91 137Contractual commitments to acquire property, plant and equipment 11,267 6,370 4,898 − −Total 13,462 6,393 4,920 205 1,944
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NOTE 4 Management of capital
Suominen’s management of capital aims to support
business activities by ensuring the conditions to
operate by means of the Group’s financial position
and capital structure. In addition, the aim is to
increase shareholder value by targeting a competitive
return on invested capital. The capital structure must
ensure the debt financing of the Group. In the capital
management planning process both current and future
needs of the business are taken into consideration
together with securing the competitive pricing of
financing.
With respect to the capital structure the Board of
Directors of Suominen monitors equity ratio, gearing,
Equity ratio and gearing at the end of the reporting period
EUR million 2025 2024Nominal value of interest-bearing liabilities 109.7 102.2Cash and cash equivalents -32.1 -41.3Interest-bearing net debt 77.6 60.8Total equity attributable to owners of the parent 96.1 117.6Assets total - advances received 272.2 310.3Gearing, % 80.7 51.7Equity ratio, % 35.3 37.9* Reference: Note 14 Interest-bearing liabilities
and leverage ratio. Equity ratio is calculated as the ratio
of equity to the total assets adjusted with advance
payments received. Gearing is calculated as the ratio
of interest-bearing net debt to equity. Leverage ratio
is calculated as the ratio of interest-bearing net debt
to EBITDA.
The capital structure can be influenced by
distributing dividends or other funds and share issues.
If there is a need, the Group can buy back own shares
or issue new shares as authorized by the general
meetings, or decide to sell assets or businesses to
reduce liabilities.
At the end of 2025, the Group’s equity ratio was
35.3% (37.9%) and gearing was 80.7% (51.7%).
Suominen participates in Supply Chain Financing
programs of certain customers. Under the programs
the trade receivables from these customers are sold
on a non-recourse basis. In addition, the Group has
other non-recourse factoring programs. The programs
release capital employed.
The funding is managed by maintaining good
relations with the financial institutions.
Suominen plans to cover the loan amortization
needs with its cash flow from operations.
The Group’s loan agreements include covenant
terms which are linked to consolidated key figures.
The term loan and revolving credit facility includes
leverage ratio and gearing as financial covenants. If the
covenant terms are not fulfilled, negotiations with the
lenders will be initiated.
The interest-bearing liabilities of Suominen are
presented in Note 14 of the consolidated financial
statements.
NOTE 5 Goodwill
EUR thousand
Impairment testing of goodwill
The carrying amount of goodwill is tested at least
annually for impairment. If the impairment testing
indicates that the recoverable amount of the cash
generating unit which includes goodwill is lower than
its carrying amount, an impairment loss of goodwill
and of other assets, if applicable, is recognized in
the statement of profit or loss. The impairment loss
of goodwill will not be reversed during subsequent
reporting periods.
In impairment testing the recoverable amount for the
cash generating unit is determined as the value in use.
Value in use comprises the discounted projected future
cash flows. Projected cash flows are based on actual
performance, annual plans as well as five-year forecasts
based on the Group’s strategy. The main assumptions
of forecasts are always reviewed during the impairment
testing. Cash flows in the period beyond the five-year
forecasted period are extrapolated using the growth
rates for Suominen’s business. The key assumptions
used in the value in use are sales trend of the
cash-generating unit, the profitability of the business,
expense levels and the discount rate used.
The replacement investments needed for
maintaining the existing production capacity have
been estimated based on the planned depreciation
during the useful lives of each asset in the
cash-generating unit. Replacement investments
also include renewals of lease contracts. In addition,
growth investments, which are already on-going, are
included as investments in the impairment testing.
In accordance with its strategy, Suominen aims to
grow by creating innovative and more sustainable
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nonwovens for its customers and aims to improve
profitability through more efficient operations and a
high performance culture. The main focus is on wipes.
The comparable financial performance of Suominen
in 2025 has decreased from 2024 mainly related
to certain incidents in production plants during the
third quarter of 2025 in the USA. However, sales
margin has continued to improve. Suominen has
launched a program to speed up profit improvement
initiatives. The program is focusing on cost savings
in both fixed and variable expenses, operational and
commercial excellence, on specific projects and cash
flow optimization. The program started during the
second half of 2025 and is expected to add significant
improvement on Suominen’s profitability within the
next 18 months. Due to the precautionary principle,
the estimated positive effects of the initiated program
on the result have not been included in full in the
impairment calculation.
In fixed costs the effect of inflation has been taken
into account. Headcount increases are mainly related
to the new production line in Alicante.
The annual growth rate for Suominen’s net sales
during the period covered by the forecast (2026−2030)
has been estimated at 3.7%. The estimated growth rate
has slightly decreased from the previous year.
Annual terminal growth rate (2.0%) is assumed to
equal overall inflation development.
The discount rate has been determined by using
a capital structure, which is considered to reflect
the long-term capital structure at the time of the
impairment test. In this determination Suominen
has used a peer group, whose capital structure has
an average debt to equity ratio of 37.7%. The lease
liabilities in the statement of financial position have
been taken into account in the calculation of the
discount rate. Cost of capital has been calculated as
a weighted average pre-tax rate for equity and debt
and taking into the consideration the risk-free rate
and risk margins of equity and debt respectively. The
components of the cost of capital are revised annually.
The discount rate used in the calculation is the
weighted average of the risk-free 30-year government
bond rates in the countries where Suominen operates,
or if these rates have not been available, the average of
10-year government bonds has been used. The used
discount rate has increased from the previous year.
Impairment testing is based on present estimates
of future development at the time of the impairment
testing. The uncertainty in measuring the values in use
is captured by analyzing variations in the amount or
timing of cash flows. The element of uncertainty and
risk has been accounted for in the discount rates.
Based on the impairment testing, the goodwill of
Suominen is not impaired.
When performing impairment testing, not only the
carrying amount of goodwill is included in the tested
carrying amount but also the carrying amount of
property, plant and equipment and right-of-use assets
as well as net working capital.
If the pre-tax discount rate would increase by
1.268 percentage points, or the annual terminal
operating profit percentage would decrease by 0.87
percentage points, or the terminal year growth rate
would decrease 2.0 percentage points, or the growth
in net sales decreased 1.835 percentage points, other
assumptions unchanged, the recoverable amount
would equal the carrying amount.
The critical assumptions in impairment
testing
2025 2024Pre-tax discount rate 11.6% 10.5%Growth in net sales 2026−2030 (2025−2029) 3.7% 3.8%Annual terminal growth rate 2.0% 2.0%Annual terminal operating profit percentage 5.2% 5.1%
Accounting principles
Goodwill represents the excess of the purchase
consideration over the fair value of acquired net assets.
Goodwill is allocated to those cash generating units
which benefit from the acquired net assets as well as
from synergies arising from the acquisition.
At the end of the reporting period, the carrying
amount of goodwill was EUR 15,496 thousand
(EUR 15,496 thousand in 2024). The Group has one
operating segment (Nonwovens), which is also a cash
generating unit to which goodwill has been allocated
in its entirety.
Critical accounting estimates and
judgements
Goodwill is tested annually for possible impairment.
The recoverable amounts have been determined
based on the assets’ value in use which require the
use of estimates. The actual cash flows can differ from
estimated discounted future cash flows. Uncertainties
related to the projected future cash flows include,
among others, the long economic useful lives of the
assets, the estimated sales prices, production costs
and changes in discount rate used in testing.
Potential adverse extreme effects from the climate
change (such as water shortages, heat waves, increased
rainfall, flooding, storms) on Suominen have been
considered in the testing, but so far these are seen to
have only a temporary effect upon Suominen’s business
performance and hence no material impacts have been
included in the cash flow estimates used in testing. The
management follows these risks and their development.
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Advance Other payments and Intangible Intangible intangible assets under assets total Goodwill rightsassetsconstruction20252025Acquisition cost January 1 19,886 80 62 20,028 15,496Exchange difference -17 − − -17 −Additions 55 − 104 160 −Decreases and disposals -805 249 − -557 −Reclassifications 44 − -44 − −Acquisition cost December 31 19,163 329 122 19,614 15,496Accumulated amortization and impairment losses January 1 -17,274 − − -17,274 −Exchange difference 13 − − 13 −Amortization for the reporting period -1,731 -30 − -1,761 −Decreases and disposals 805 -249 − 557 −Accumulated amortization and impairment losses December 31 -18,186 -278 − -18,465 −Carrying amount December 31 977 51 122 1,150 15,496
Advance Other payments and Intangible Intangible intangible assets under assets total Goodwill rightsassetsconstruction20242024Acquisition cost January 1 22,640 6,757 36 29,433 15,496Exchange difference -3 62 − 59 −Additions 78 − 32 109 −Decreases and disposals -2,835 -6,739 − -9,574 −Reclassifications 6 − -6 0 −Acquisition cost December 31 19,886 80 62 20,028 15,496Accumulated amortization and impairment losses January 1 -17,103 -6,247 − -23,349 −Exchange difference 2 -61 − -59 −Amortization for the reporting period -3,008 -431 − -3,439 −Decreases and disposals 2,835 6,739 − 9,574 −Accumulated amortization and impairment losses December 31 -17,274 − − -17,274 −Carrying amount December 31 2,612 80 62 2,754 15,496
NOTE 6 Intangible assets
EUR thousand
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Accounting principles
Intangible rights include patents, trademarks and
software licences. Other intangible assets are
development and other costs which are directly
attributable to the design and testing of identifiable
and unique software or similar intangible assets. If an
intangible asset is a qualifying asset as defined in IAS
23, i.e. an asset that necessarily takes a substantial
period of time to get ready, the borrowing costs are
capitalized into the initial acquisition cost of the asset.
Subsequent expenditure on intangible assets is
capitalized only if the future economic benefits from
the asset exceed the initially planned level. Otherwise
the expenditure is recognized as an expense in the
statement of profit or loss.
Intangible rights and other intangible assets are
recognized in the statement of financial position
at their initial acquisition cost less cumulative
amortization and impairment losses, if any. They are
amortized using planned straight-line amortization
during of their estimated useful lives. Intangible assets
from acquisition of a subsidiary are stated at their fair
values at the date of the acquisition.
Suominen has no other material intangible assets
than goodwill which have indefinite useful life.
Goodwill and intangible assets not yet available for
use are tested annually for impairment. Disclosure
information of goodwill is presented in Note 5 of the
consolidated financial statements.
Other intangible assets are tested for impairment if
there are indications that the asset may be impaired.
Impairment testing is described in Note 24 of the
consolidated financial statements.
Amortization periods for intangible assets
Goodwill no amortization
Intangible rights 3–13 years
Other intangible assets 5–10 years
Advance payments and assets
under construction no amortization
Critical accounting estimates
and judgements
If there is indication of impairment, the carrying
amounts of intangible assets are compared with their
recoverable amounts. The recoverable amount is the
higher of fair value and value in use. Value in use is
calculated by discounting the future cash flows arising
from the the asset. If the recoverable amount of an
asset is lower than the carrying amount, an impairment
loss is recognized. Both the amounts and timing of the
cash flows are based on management estimates.
The useful lives of intangible assets are based on
management’s best estimate of the period the asset
is expected to be available for use by Suominen.
The actual useful life can, however, differ from the
expected useful life resulting in adjustment of annual
amortization of the asset or in recognizing of an
impairment loss.
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NOTE 7 Property, plant and equipment
EUR thousand
Advance payments and Buildings and Machinery and Other assets under Landconstructionsequipmenttangible assetsconstruction Total 2025Acquisition cost January 1 2,930 67,028 255,091 2,430 17,506 344,986Exchange difference -150 -4,028 -20,369 -7 -829 -25,383Additions − 323 2,363 4 22,881 25,571Capitalized borrowing costs − − − − 559 559Decreases and disposals − -36 -594 − − -630Reclassifications − 1,031 10,318 39 -11,388 −Acquisition cost December 31 2,780 64,319 246,808 2,467 28,729 345,103Accumulated depreciation and impairment losses January 1 − -47,000 -176,684 -947 − -224,630Exchange difference − 2,193 14,162 1 − 16,355Decreases and disposals − 36 548 0 − 584Depreciation for the reporting period − -2,269 -9,630 -243 − -12,142Impairment losses for the reporting period − − -426 − − -426Accumulated depreciation and impairment losses December 31 − -47,040 -172,031 -1,190 − -220,259Carrying amount December 31 2,780 17,279 74,778 1,277 28,729 124,844
Advance payments and Buildings and Machinery and Other assets under Landconstructionsequipmenttangible assetsconstruction Total 2024Acquisition cost January 1 3,097 64,143 241,895 2,077 9,138 320,350Exchange difference -167 1,551 8,765 − 102 10,250Additions − 101 1,145 1 14,360 15,607Capitalized borrowing costs − − − − 287 287Decreases and disposals − -99 -1,398 -13 − -1,509Reclassifications − 1,331 4,685 365 -6,382 −Acquisition cost December 31 2,930 67,028 255,091 2,430 17,506 344,986Accumulated depreciation and impairment losses January 1 − -44,136 -162,730 -759 − -207,623Exchange difference − -704 -5,727 0 − -6,431Decreases and disposals − 99 1,396 13 − 1,507Depreciation for the reporting period − -2,258 -9,623 -201 − -12,083Accumulated depreciation and impairment losses December 31 − -47,000 -176,684 -947 − -224,630Carrying amount December 31 2,930 20,029 78,408 1,483 17,506 120,356
The largest individual investments in 2025 were the
ongoing growth investments at the Alicante plant in
Spain and the Bethune plant in the United States.
Impairment losses relate to the closure of one
production line.
2025 2024Carrying amount of production machinery and equipment 73,913 77,645
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the assets are qualifying assets as defined in IAS 23
Borrowing Costs.
Depreciation is recognized on a straight-line basis
over expected useful lives. Depreciation begins when
the asset is available for its intended use. Land is not
depreciated since it is deemed to have indefinite
useful life.
Propert, plant and equipment are tested for
impairment if there are indications that the asset may
be impaired. Impairment testing is described in Note
24 of the consolidated financial statements.
Gains and losses from the sales and disposals of
property, plant and equipment are determined as a
difference between the sales price and the carrying
amount of the asset and they are recognized as other
operating income or expenses.
Depreciation periods for property,
plant and equipment
Land no depreciation
Buildings and constructions 10–40 years
Machinery and equipment 4–20 years
Other tangible assets 3–5 years
Advance payments and assets
under construction no depreciation
Critical accounting estimates and
judgements
If there is indication of impairment, the carrying
amounts of property, plant and equipment are
compared with their recoverable amounts. The
recoverable amount is the higher of fair value and
value in use. Value in use is calculated by discounting
the future cash flows arising from the the asset. If
the recoverable amount of an asset is lower than the
carrying amount, an impairment loss is recognized.
Both the amounts and timing of the cash flows are
based on management estimates.
The useful lives of property, plant and equipment
are based on management’s best estimate of the
period the asset is expected to be available for use by
Suominen. The actual useful life can, however, differ
from the expected useful life resulting in adjustment of
annual depreciation of the asset or in recognizing of
an impairment loss.
The customer demand for nonwovens has shifted
more and more to sustainable nonwovens not
containing plastic and which are made of plant-
based fibers. In addition, legislation also directs the
transition into plastic-free and sustainable nonwovens.
Suominen has for some years already put effort in
the R&D on developing sustainable nonwovens by
researching the use of new, potential raw materials as
well as the biodegradability of raw materials.
Suominen follows the technical capabilities of its
production lines and aims to ensure the ability of the
lines to produce these sustainable nonwovens by
continuously investing in its production lines, and is
thus improving its ability to meet customer demand
and the requirements set by legislation. With these
investments Suominen aims to prevent the production
lines from becoming technologically obsolete due to
customer demand and the useful lives of the lines from
shortening from the initial estimates.
Potential adverse extreme effects from climate
change (such as water shortages, heat waves,
increased rainfall, flooding, storms) on Suominen have
been considered for example in estimating the carrying
amounts of property, plant and equipment as well
as their useful lives, but so far these are seen to have
only a temporary effect upon Suominen’s business
performance and hence there are no material impacts
on the carrying amounts or depreciation periods of
property, plant and equipment. The management
follows these risks and their development.
Contractual commitments to acquire property, plant
and equipment are presented in Note 31.
Right-of-use assets are presented in Note 21.
Depreciation and impairment losses are disclosed
in Note 5.
Accounting principles
Property, plant and equipment consist mainly of land,
buildings and structures as well as of machinery and
equipment. They are recognized in the statement
of financial position at their acquisition cost less
cumulative depreciation and impairment losses, if
any. When an asset consists of major components
with different useful lives, they are accounted for
as separate items. Assets from acquisition of a
subsidiary are stated at their fair values at the date of
the acquisition.
When part of an asset in property, plant and
equipment is replaced, the cost of the replacement
is capitalized and the eventual remaining carrying
amount of the replaced asset is derecognized. Other
subsequent expenditure is capitalized only if the future
economic benefits to the company from the asset are
enhanced. Ordinary maintenance and repair charges
are expensed as incurred.
Borrowing costs are capitalized as part of the
acquisition cost of property, plant and equipment if
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NOTE 8 Group companies
Owned by Company Domicile Ownership, %parent companySuominen Corporation Helsinki, FinlandSuominen Nonwovens Ltd. Nakkila, Finland 100% xMozzate Nonwovens S.r.l. Gallarate, Italy 100% xCressa Nonwovens S.r.l. Gallarate, Italy 100%Alicante Nonwovens S.A.U. Alicante, Spain 100% xSuominen US Holding, Inc. Delaware, USA 100% xBethune Nonwovens, Inc. Bethune, South Carolina, USA 100%Green Bay Nonwovens, Inc. Green Bay, Wisconsin, USA 100%Windsor Locks Nonwovens, Inc. Windsor Locks, Connecticut, USA 100%Suominen Brasil Indústria e Comercio de Não-Tecidos Ltda. Paulínia, Brazil 100% x
NOTE 9 Equity instruments
EUR thousand
Designated at fair value through other comprehensive income Total 2025Carrying amount January 1 421 421Carrying amount December 31 421 421Designated at fair value through other comprehensive income Total 2024Carrying amount January 1 421 421Carrying amount December 31 421 421
Accounting principles
For investments in equity instruments, ie. shares, IFRS 9
enables the entity to make an irrevocable election of
classification and measurement by equity instrument.
The equity instruments consist of unlisted shares
and they are classified at fair value through other
comprehensive income, and both the fair value
changes and the possible gains and losses on disposal
are recognized in other comprehensive income
without subsequent recycling to profit or loss. Other
equity instruments are not material items in the
consolidated financial statements of Suominen.
If there is no active market for the equity instruiment
or if the securities are not listed, the Group measures
fair value with valuation techniques. If there is no
asset-specific data available from transactions
between independent parties, the fair values used
for the asset are for example the present value of
discounted cash flows arising from the asset or fair
values of other instruments which are substantially
identical to the asset.
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NOTE 10 Inventories
EUR thousand
2025 2024InventoriesRaw materials and consumables 28,060 28,960Work in progress 1,944 3,526Finished goods 10,218 14,832Advance payments for inventory 221 152Total inventories 40,443 47,470Write-down of inventory and reversals of write downs, net -49 1,430Write-downs included the inventories at the end of the period were EUR 4,665 thousand (EUR 4,780 thousand). During the financial year, reversals of write downs amounting to EUR 4,616 thousand (EUR 6,209 thousand) were made.Inventories recognized as expense during the period -310,692 -355,127
Accounting principles
Cost of inventories is measured using the FIFO
(first-in-first-out) principle or weighted average
cost. The value of inventory includes all direct and
indirect costs associated with purchase. The cost of
manufactured products includes the cost of materials,
direct labour and other direct costs, including general
manufacturing overheads. The cost of inventories
excludes sales, administration and financing costs.
Borrowing costs are not capitalized in inventory.
Inventories are valued at the lower of cost and the
probable net realizable value. Net realizable value is
the estimated selling price in the ordinary course of
business less the estimated costs of completion and
estimated costs necessary to make the sale.
Obsolete items in inventories are written down.
Suominen applies the standard ageing-based rule
when evaluating obsolete items: items with no sales
for more than six months are written down by 50%,
and items with no sales for more than twelve months
are written down by 95%. Goods that cannot be sold
are written down 100% and removed from inventory.
Any later proceeds are recorded as other operating
income.
Inventories recognized as expense during the period
are included in cost of goods sold in the statement of
profit or loss.
Critical accounting estimates and
judgements
Measurement of inventories includes some
management estimates. Inventories are measured
at the lower of cost and net realizable value. Net
realizable value is used in testing the recoverable
amount of inventories in order to avoid the inventories
being carried in excess of the amount expected to be
realized from their sale or use.
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NOTE 11 Trade and other
receivables
EUR thousand
2025 2024Non-current receivablesOther non-current receivables 155 158Total non-current receivables 155 158Current receivablesTrade receivables 38,077 62,477Other current receivables 4,152 3,181Prepaid expenses and accrued income 2,716 2,937Total current receivables 44,946 68,595
Ageing analysis of trade receivables and credit risk exposure
Trade receivables December 31, 2025
Past dueTotal Current < 5 days 5−30 days 31−120 days > 120 days past due TotalTrade receivables 33,445 1,999 2,523 88 1,035 5,644 39,090Allowance for expected credit losses − − − -32 -981 -1,013 -1,013Carrying amount of trade receivables 33,445 1,999 2,523 55 54 4,631 38,077
Trade receivables December 31, 2024
Past dueTotal Current < 5 days 5−30 days 31−120 days > 120 days past due TotalTrade receivables 58,305 1,558 2,335 306 1,525 5,724 64,029Allowance for expected credit losses − − -1 -84 -1,468 -1,552 -1,552Carrying amount of trade receivables 58,305 1,558 2,335 223 57 4,172 62,477
Expected credit losses of trade receivables and changes
in the allowance for expected credit losses of trade
receivables
2025 2024Allowance for expected credit losses January 1 -1,552 -1,798Exchange difference 70 -55Realized 344 −Reversed 180 880Charge for the year -56 -579Allowance for expected credit losses December 31 -1,013 -1,552Expected credit losses of trade receivables recognized during the period, net 128 285
Currency analysis of trade receivables
2025 2024EUR 19,675 27,150USD 13,621 30,421BRL 4,781 4,906Total 38,077 62,477
Prepaid expenses and accrued income consist mainly
of accruals of financial items and other accruals related
to expenses. Other receivables, both non-current and
current, include, among others, receivables related to
indirect taxes.
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The credit quality of other receivables is based on
the debtors’ payment history. Other receivables are
not past due nor impaired. The carrying amount of
other receivables equals the maximum exposure to
credit risk.
Suominen has a Supply Chain Financing Program
with a “selected supplier” status with certain
customers. In addition, the Group has factoring
programs. In accordance with the supply chain
financing agreement and the terms of the factoring
programs, the Group has transferred the rights and
responsibilities of these receivables to the counterparty
of the agreement.
Accounting principles
Trade receivables are measured at amortized cost. The
value of trade receivables depends on the transaction
price of sold goods. Transaction price is measured
in accordance with IFRS 15 Revenue from Contracts
with Customers. In defining the transaction price,
for example the variable considerations included
in the contracts, such as volume rebates, are taken
into account. This means that the transaction price
can be lower than the sales amount invoiced from
the customer.
Suominen applies the practical expedient for credit
losses arising from trade receivables and uses a
provision matrix in estimating the credit losses based
on historical experience on realized credit losses. In
accordance with the provision matrix, the credit losses
of trade receivables are based on lifetime expected
credit losses. Trade receivables are categorized based
on days past due as well as on the risk characteristics
of the customers, taking into account the customers’
capability to pay all contractual amounts as agreed
in the contracts. Risk characteristics include, among
others, the geographical risk related to the customer,
the payment behavior and the financial position of
the customer.
The expected credit losses on trade receivables are
a probability-weighted estimate of credit losses over
their expected life. Suominen’s realized credit losses
have historically been immaterial. There is, however, a
risk that some bad debt provisions made in 2025 and
2024 will be realized as credit losses due to customers’
financial difficulties.
A large part of the trade receivables were at the end
of the reporting period from international customers
with a high credit rating. These customers are capable
to pay their overdue receivables and the credit risk is
not considered to be significantly increased even if the
receivables were overdue for more than 30 days.
If it has been estimated that the credit risk of other
overdue trade receivables has significantly increased,
the expected credit losses have been recognized.
In addition, the overdue trade receivables are under
collection procedures or payment plans with the
customers have been made. Suominen also monitors
continuously that payment plans are followed.
Suominen monitors constantly the open balances of
its customers and takes action if payments are delayed.
The direct impact of the war in Ukraine to
Suominen’s business is minor as Suominen has no
customers in Russia, Belarus or Ukraine.
Critical accounting estimates and
judgements
Measurement of trade receivables includes some
management estimates. If the management estimates
that the carrying amount of a trade receivable exceeds
its fair value, an estimate of the expected credit loss is
recognized.
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NOTE 12 Financial instruments
EUR thousand
Classification of financial assetsDesignated at fair value through other comprehensive At amortized costincome Carrying amount Fair valueEquity instruments − 421 421 421Trade receivables 38,077 − 38,077 38,077Other financial receivables 239 − 239 239Cash and cash equivalents 32,064 − 32,064 32,064Total December 31, 2025 70,380 421 70,801 70,801
Designated at fair value through other comprehensive At amortized costincome Carrying amount Fair valueEquity instruments − 421 421 421Trade receivables 62,477 − 62,477 62,477Other financial receivables 246 − 246 246Cash and cash equivalents 41,340 − 41,340 41,340Total December 31, 2024 104,063 421 104,484 104,484
Accounting principles – financial assets
Suominen has defined its business model for managing
financial assets and based on the model as well as the
characteristics of the financial assets, determined the
classification of the financial assets.
Trade day accounting is applied to regular purchases
and sales of financial assets. Financial assets are
derecognized when the rights to receive cash flows
from the assets have expired or have been transferred
to an external party and the Group has transferred
substantially all the risks and rewards related to the
ownership of the assets to an external party.
Financial assets at fair value through other
comprehensive income
Financial assets at fair value through other
comprehensive income include equity instruments.
More information is presented in Note 9.
Financial assets at amortized cost
Trade receivables at amortized cost are described in
Note 11.
Cash and cash equivalents are measured at
amortized cost. Under IFRS 9 cash and cash
equivalents are also subject to credit loss assessment,
and credit losses are recognized based on either
12-month expected credit losses, or if there has
been a significant increase in the credit risk related
to the receivable, based on the lifetime expected
credit losses. Based on the situation at the end
of the reporting period and taking into account
the counterparty credit risk related to deposits in
banks, there are no credit losses from cash and cash
equivalents.
Cash and cash equivalents comprise cash and bank
account balances. If bank overdrafts are in use, they
are included in current interest-bearing liabilities.
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Classification of financial liabilities
At amortized Carrying costamount Fair value Nominal valueDebentures 49,765 49,765 46,530 50,000Other non-current interest-bearing liabilities 49,825 49,825 50,000 50,000Lease liabilities 9,666 9,666 9,666 9,666Interest accruals 426 426 426 426Other current liabilities 312 312 312 312Trade payables 49,192 49,192 49,192 49,192Total December 31, 2025 159,187 159,187 156,127 159,597
At amortized Carrying costamount Fair value Nominal valueDebentures 49,606 49,606 45,255 50,000Other current interest-bearing liabilities 40,000 40,000 40,000 40,000Lease liabilities 12,154 12,154 12,154 12,154Interest accruals 582 582 582 582Other current liabilities 269 269 269 269Trade payables 67,654 67,654 67,654 67,654Total December 31, 2024 170,265 170,265 165,914 170,659
Accounting principles – financial liabilities
Financial liabilities are classified as current liabilities
if they mature within 12 months from the end of the
reporting period.
A financial liability or a part of a financial liability
is removed from the statement of financial position
when the liability is extinguished, i.e. when the
obligation specified in the contract is discharged or
cancelled or expired.
Interest-bearing liabilities, including lease liabilities,
are described in Note 14 of the consolidated financial
statements.
Trade payables
Trade payables are measured at amortized cost. The
carrying amount of trade payables is equal to fair value
based on their short maturity.
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NOTE 13 Equity and information
of Suominen share
Share capital and number of shares
The registered share capital of Suominen Corporation
totals EUR 11,860,056. The number of Suominen’s
registered shares on December 31, 2025, was
58,259,219 shares.
Suominen has one series of shares. Each share has
one vote in the General Meeting of the shareholders
and all the shares have equal rights to dividend or
other distribution of equity. Suominen share has no
nominal value. Suominen Corporation shares are listed
on Nasdaq Helsinki Ltd.
Treasury shares
The treasury shares acquired by Suominen and
the related costs are presented as deductions of
distributable equity. In accordance with the Limited
Liability Companies Act, treasury shares do not carry
entitlement to shareholder rights, such as the right to
receive dividend or other distribution of funds, or the
right to attend a General Meeting.
At the end of the reporting period Suominen
held 486,744 treasury shares. In accordance with
the resolution by the Annual General Meeting,
36,013 shares were transferred on May 16, 2025,
Authorizations of the Board of Directors
The 2025 Annual General Meeting of Suominen
authorized the Board of Directors to decide on
the repurchase of 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 through trading on
the regulated market organized by Nasdaq Helsinki Ltd
at the market price prevailing at the time of acquisition
using the company’s unrestricted equity. The shares
shall be repurchased to be used in the company’s
share-based incentive programs, in order to disburse
the remuneration of the members of the Board of
Directors, to be used 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
is valid until June 30, 2026, and it revokes all earlier
authorizations to repurchase the company’s own
shares.
The Board of Directors was authorized to decide
on the issuance of new shares, conveyance of the
treasury shares held by the company and/or granting
of option rights and other special rights entitling to
to the members of the Board of Directors as their
remuneration payable in shares. As a vesting period
of the President & CEO’s share-based payment plan
ended, in total 9,359 shares were transferred to the
President & CEO in June.
Other equity reserves
The share premium account is restricted equity and
the reserve can no longer increase. The share premium
account can be used to increase share capital.
Reserve for invested unrestricted equity is an
unrestricted equity reserve, which can be used in
returning capital to the shareholders. The reserve
arises or increases in share issues by recognizing in
the reserve that part of the emission price which is
not recognized in share capital. It can also increase in
connection of other equity increases. The investments
in the reserve can be made by shareholders or
external parties.
Fair value reserve includes the fair value changes of
derivatives when hedge accounting is applied. Also
the fair value changes of equity instruments classified
at fair value through other comprehensive income are
recognized in the fair value reserve.
Other reserves include legal reserve, which consists
of the part of the profit which by local legislation has
to moved to a restricted equity reserve.
The exchange differences arising from translating
the statements of profit or loss, statements of
comprehensive income and statements of financial
position into euro using the different exchange rates
are recognized as other comprehensive income and
included in equity in cumulative exchange difference.
Exchange differences arising from the translation
of the net investments in foreign subsidiaries in
the non-euro area are also recognized in other
comprehensive income and included in equity in
cumulative exchange differences.
Some loans granted to the subsidiaries are in
substance a part of a net investment in the subsidiary,
as settlement of the loan is not likely to occur in
the foreseeable future. The exchange differences
arising from those loans are recognized in other
comprehensive income and in exchange differences
in equity.
Share-based plans
The share-based incentive plans are described in
Note 27 of the consolidated financial statements.
Suominen has no option plans.
The share ownership of related parties in Suominen
is disclosed in Note 30 of the consolidated financial
statements.
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shares referred to in Chapter 10, Section 1 of the
Finnish Companies Act. By virtue of the authorization,
the Board of Directors may, by one or several
resolutions, issue a maximum of 5,000,000 shares.
The shares granted by virtue of option rights and other
special rights are included in the aforementioned
maximum number. Option rights and other special
rights may not be granted as a part of the company’s
remuneration system.
The authorization revoked all earlier authorizations
regarding the issuance of shares and issuance of
option rights and other special rights entitling to
shares. The Board of Directors will decide on all other
terms and conditions related to the authorization. The
authorization is valid until June 30, 2026.
The share issue can be made either against payment
or without payment and can also be directed to the
company itself. The authorization entitles the Board
of Directors to also decide that shares are issued
otherwise than in proportion to the shareholdings of the
shareholders (directed share issue). The authorization
can be used to carry out acquisitions or other
arrangements related to the company’s business, to
finance investments, to improve the company’s financial
structure, as part of the company’s remuneration
system or to pay the share proportion of the
remuneration of the members of the Board of Directors
or for other purposes decided by the Board of Directors.
Dividend and return of capital 2025 2024Proposed dividend and/or return of capital per share for the financial year, euro* 0.00 0.00Paid dividend and/or return of capital per share for the previous financial year, euro 0.00 0.10* The proposal of the Board of Directors to the Annual General Meeting.
Share trading and price
The number of Suominen Corporation shares traded
on Nasdaq Helsinki January 1–December 31, 2025,
was 1,096,086 shares (951,426 shares), accounting for
1.9% (1.7%) of the average number of shares (excluding
treasury shares). The highest price was EUR 2.73
(EUR 2.93), the lowest EUR 1.56 (EUR 1.96) and the
volume-weighted average price EUR 1.89 (EUR 2.53).
The closing price at the end of reporting period
was EUR 1.79 (EUR 2.28). The market capitalization
(excluding treasury shares) was EUR 103.4 million on
December 31, 2025 (EUR 131.6 million).
Number of shares
Changes in number of shares
Number of shares January 1, 2024 58,259,219Number of shares December 31, 2024 58,259,219Number of shares December 31, 2025 58,259,219
Changes in treasury shares
Number of shares January 1, 2024 566,760Conveyance of treasury shares, reward for the Board of Directors -25,088Conveyance of treasury shares, share-based plans -9,556Number of shares December 31, 2024 532,116Conveyance of treasury shares, reward for the Board of Directors -36,013Conveyance of treasury shares, share-based plans -9,359Number of shares December 31, 2025 486,744
Number of shares December 31, 2025 December 31, 2024Number of shares excluding treasury shares 57,772,475 57,727,103Share-issue adjusted number of shares excluding treasury shares 57,772,475 57,727,103Average number of shares excluding treasury shares 57,760,108 57,713,587Average share-issue adjusted number of shares excluding treasury shares 57,760,108 57,713,587Average diluted share-issue adjusted number of shares excluding treasury shares 57,949,178 57,878,570
Notifications in 2025 under Chapter 9, Sections 5 and 6 of the Securities Market Act
There were no notifications in 2025.
135Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Largest shareholders December 31, 2025
Shareholder Number of shares % of shares and votes1. Ahlström Capital B.V. 14,127,449 24.2%2. Etola Group Oy 7,434,000 12.8%3. Oy Etra Invest Ab 7,000,000 12.0%4. OP Life Assurance Company Ltd. 4,771,850 8.2%5. Nordea Nordic Small Cap Fund 3,600,371 6.2%6. Mandatum Life Insurance Company 2,884,864 5.0%7. Ilmarinen Mutual Pension Insurance Company 1,912,000 3.3%8. Nordea Life Assurance Finland Ltd. 1,747,927 3.0%9. Varma Mutual Pension Insurance Company 1,689,751 2.9%10. Oy H. Kuningas & Co. AB 1,327,317 2.3%11. Maijala Investment Oy 1,176,232 2.0%12. Skandinaviska Enskilda Banken AB (publ.) 1,031,314 1.8%13. Laakkosen Arvopaperi Oy 900,000 1.5%14. Juhani Maijala 794,026 1.4%15. Pension Insurance Company Elo 689,430 1.2%15 largest total 51,086,531 87.7%Other shareholders 5,382,793 9.2%Nominee registered 1,303,151 2.2%Treasury shares 486,744 0.8%Total 58,259,219 100.0%
Ownership distribution December 31, 2025
Number of shareholders % of total Number of shares % of shares and votesCorporations 127 2.9 % 11,348,566 19.5 %Financial and insurance corporations 11 0.3 % 21,051,997 36.1 %General government 4 0.1 % 4,291,781 7.4 %Non-profit institutions 8 0.2 % 239,320 0.4 %Households 4,180 96.0 % 5,328,355 9.1 %Foreign countries 26 0.6 % 14,209,305 24.4 %Total 4,356 100.0 % 56,469,324 96.9 %Nominee registered 9 1,303,151 2.2 %Treasury shares 1 486,744 0.8 %Total 4,366 58,259,219 100.0 %
Shareholders by share ownership December 31, 2025
Number of shares Number of shareholders % of total Number of shares % of shares and votes1−100 1,715 39.3 % 73,811 0.1 %101−500 1,440 33.0 % 375,307 0.6 %501−1,000 515 11.8 % 399,944 0.7 %1,001−5,000 531 12.2 % 1,165,639 2.0 %5,001−10,000 71 1.6 % 515,132 0.9 %10,001−50,000 56 1.3 % 1,084,898 1.9 %50,001−100,000 12 0.3 % 795,715 1.4 %100,001−500,000 10 0.2 % 2,203,063 3.8 %more than 500,000 15 0.3 % 51,158,966 87.8 %Total 4,365 100.0 % 57,772,475 99.2 %Treasury shares 1 486,744 0.8 %Total 4,366 58,259,219 100.0 %
136Suominen Annual Report 2025
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NOTE 14 Interest-bearing
liabilities
EUR thousand
Suominen entered in June 2025 into a single-currency
syndicated credit facility agreement which consists
of a EUR 50 million term loan and a EUR 50 million
revolving credit facility with a maturity of three years
with a one-year extension option. The lenders for the
facility are Danske Bank A/S and Nordea Bank Abp. The
new credit facility includes leverage ratio and gearing
as financial covenants.
The new credit facility replaced the EUR 100
million syndicated revolving credit facility agreement
of Suominen provided by Danske Bank A/S and
Nordea Abp.
The financial covenants of the syndicated credit
facility have to be fulfilled quarterly.
The financial covenants of these loans are regularly
monitored. In order to ensure that the covenant
conditions are met, Suominen has agreed with the
lenders about amendment of the covenant thresholds.
Management has prepared cash flow forecasts and
based on the current projection, including profitability
improvement actions, the company expects to meet
all covenant conditions and maintain sufficient liquidity
for the 12 months following the reporting date.
2025 2024Carrying Nominal Carrying Nominal amount Fair valuevalueamount Fair valuevalueNon-current interest-bearing liabilitiesDebentures 49,765 46,530 50,000 49,606 45,255 50,000Other non-current interest-bearing liabilities 49,825 50,000 50,000 − − −Lease liabilities 6,829 6,829 6,829 9,277 9,277 9,277Total 106,419 103,359 106,829 58,883 54,532 59,277Current interest-bearing liabilitiesOther interest-bearing liabilities − − − 40,000 40000 40000Lease liabilities 2,837 2,837 2,837 2,877 2,877 2,877Total 2,837 2,837 2,837 42,877 42,877 42,877Total 109,256 106,196 109,666 101,760 97,409 102,154
In June 2021, Suominen issued a senior unsecured
bond of EUR 50 million. The six-year bond matures on
June 11, 2027, and it carries a coupon interest of 1.50%.
The bond is listed on the official list of Nasdaq
Helsinki Ltd.
The bond constitutes a direct and unsecured
obligation of Suominen and it is guaranteed as for own
debt by certain subsidiaries of Suominen Corporation.
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 investors.
137Suominen Annual Report 2025
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Change in interest-bearing liabilities
2025 2024Total interest-bearing liabilities at the beginning of the period 101,760 102,278Current liabilities at the beginning of the period 42,877 43,117Repayment of lease liabilities, cash flow items -2,848 -3,312Repayment of other current liabilities, cash flow items -128,000 -160,000Drawdown of current liabilities, cash flow items 88,000 160,000Increases in current liabilities, non-cash flow items 376 630Decreases of current liabilities, non-cash flow items -108 -284Reclassification from non-current liabilities 2,735 2,643Exchange rate difference, non-cash flow item -194 81Current liabilities at the end of the period 2,837 42,877Non-current liabilities at the beginning of the period 9,277 9,711Drawdown of non-current liabilities, cash flow items 50,000 −Increases in non-current liabilities, non-cash flow items 819 1,949Decreases of non-current liabilities, non-cash flow items -91 -11Reclassification to current liabilities -2,735 -2,643Periodization of interest-bearing non-current liabilities to amortized cost, non-cash flow items -175 −Exchange rate difference, non-cash flow item -442 272Non-current liabilities at the end of the period 56,654 9,277Non-current debentures at the beginning of the period 49,606 49,449Periodization of debenture to amortized cost, non-cash flow items 159 157Non-current debentures at the end of the period 49,765 49,606Total interest-bearing liabilities at the end of the period 109,256 101,760
Maturity of interest-bearing liabilities 2025 20242026 (2025) 2,837 42,8772027 (2026) 52,348 2,8142028 (2027) 1,322 52,2402029 (2028) 50,899 1,2152030− (2029−) 1,850 2,614Total 109,256 101,760Interest-bearing liabilities by currencyEUR 105,644 96,096USD 3,492 5,486BRL 120 178Total 109,256 101,760
Accounting principles
Listed debentures are recognized at amortized cost
using the effective interest method. The fair value of a
listed debenture is measured using the market price at
the end of the reporting period.
Non-current interest-bearing liabilities are
recognized at amortized cost using the effective
interest method.
Fees paid on loan facilities are recognized as
transaction costs of the loan to the extent that it is
probable that the facility will be drawn down. In this
case, the fee is recognized in the statement of financial
position until the draw-down of the loan occurs, and it
is recognized in profit or loss over the loan period. If it
is not probable that the loan facility will be utilized, the
fee will be immediately recognized in profit or loss.
Accounting principles related to lease liabilities are
disclosed in Note 21.
138Suominen Annual Report 2025
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NOTE 15 Provisions
EUR thousand
Non-current provisionsRestoration provisions Income tax provisions Other provisions TotalJanuary 1, 2024 524 26 14 564Exchange difference 25 − − 25Effect of discounting 39 − − 39Released during the reporting period − -26 -14 -40December 31, 2024 588 − − 588Exchange difference -50 − − -50Effect of discounting 41 − − 41December 31, 2025 579 − − 579
Current provisions
Restoration provisions Other provisions TotalJanuary 1, 2024 3,082 788 3,870Used during the reporting period -2,055 -835 -2,890Released during the reporting period -1,061 − -1,061Effect of discounting 212 47 259December 31, 2024 178 − 178Used during the reporting period -93 − -93Released during the reporting period -85 − -85December 31, 2025 − − −
The provisions of Suominen consist of the obligations to restore the leased premises at the end of the lease
contracts (Note 21).
Accounting principles
A provision is recognized when there is a present legal
or constructive obligation arising from past events
and it is probable, that the fulfillment of the obligation
requires payment and generates outflow of economic
benefits from the company, and when the amount of
the obligation can be measured reliably. Provisions are
recognized as liabilities in the statement of financial
position. The amount recognized as a provision is the
best estimate of the expenditure required to settle the
present obligation at the end of the reporting period.
If the time value of money is material, provisions
are discounted.
A restructuring provision is recognized only when a
detailed and fully compliant plan has been prepared
for it and the implementation of the plan has been
started or a notification of it has been made known to
those whom the arrangement concerns.
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NOTE 16 Trade payables and
other liabilities
EUR thousand
2025 2024Current liabilitiesTrade payables 49,192 67,654Advances received 212 31Other liabilities 809 1,061Accrued expenses and deferred income 11,784 13,102Total trade payables and other current liabilities 61,998 81,849
2025 2024Accrued expenses and deferred incomeExpenses 6,480 6,702Personnel related expenses 4,778 5,516Other 527 885Total accrued expenses and deferred income 11,784 13,102
Accrued expenses and deferred income include,
among others, accrued interest expenses, accrued
personnel expenses and other accruals for expenses.
Other liabilities include, among others, liabilities from
indirect taxes.
NOTE 17 Fair value hierarchy
EUR thousand
Fair value hierarchy in 2025
Financial assets at fair value Level 1 Level 2 Level 3Equity instruments − − 421Total in 2025 − − 421
Fair value hierarchy in 2024
Financial assets at fair value Level 1 Level 2 Level 3Equity instruments − − 421Total in 2024 − − 421
Fair value changes in Level 3
Financial assets at fair value Total January 1, 2024 421Total December 31, 2024 421Total December 31, 2025 421
Items to be recognized in profit or loss are recognized
in financial items.
There were no transfers in the fair value
measurement hierachy levels during the reporting
periods.
Fair values in Level 1 are based on quoted prices
(unadjusted) in active markets for identifical assets
or liabilities.
The fair value for financial instruments that are not
traded in an active market is determined by using
valuation techniques. These valuation techniques
maximize the use of observable market data where
it is applicable and rely as little as possible on entity-
specific estimates. If all significant inputs required to
measure the fair value of an instrument are observable,
the instrument is included in Level 2.
The fair values of financial instruments on Level 3
are based on related inputs, which are not based on
observable market information but significantly on
management estimates which are used in generally
accepted valuation methods.
If there is no active market for the equity instruiment
or if the securities are not listed, the Group measures
fair value with valuation techniques. If there is no
asset-specific data available from transactions
between independent parties, the fair values used
for the asset are for example the present value of
discounted cash flows arising from the asset or fair
values of other instruments which are substantially
identical to the asset.
Currency analysis of trade payables
2025 2024EUR 20,873 27,606USD 27,927 39,558BRL 387 490Other currencies 5 −Total 49,192 67,654
140Suominen Annual Report 2025
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NOTE 18 Revenue from
contracts with customers
EUR thousand
The net sales of Suominen Group consist entirely
of sales of nonwovens. In 2025, sales to three
(three) customers each exceeded 10% of total net
sales. Net sales to these customers amounted to
EUR 56.8 million (80.1), EUR 60.1 million (72.3) and
EUR 58.6 million (63.4). Two significant incidents
at US facilities constrained the Group’s supply
capabilities, negatively impacting both sales and
profitability during the financial period.
The customer demand for nonwovens has shifted
more and more to sustainable nonwovens not
containing plastic and which are made of plant-
based fibers. In addition, legislation also directs
the transition into plastic-free and sustainable
nonwovens. Suominen has for years already put
effort in conducting R&D on developing sustainable
nonwovens by researching the use of new, potential
raw materials as well as the biodegradability of raw
materials.
Suominen aims to ensure the ability of its
production lines to produce sustainable nonwovens
by continuously investing in the production lines,
and is thus improving its ability to meet the customer
demand and requirements set by legislation.
2025 2024Net sales by geographical destinationFinland 3,725 3,619Rest of Europe 147,322 159,639Americas 260,942 297,628Rest of the world 444 1,432Total 412,433 462,318Net sales by business areaEMEA 159,918 174,419Americas 252,570 287,907Unallocated exchange differences of sales and internal sales -54 -8Total 412,433 462,318
Accounting principles
Suominen applies IFRS 15 Revenue from Contracts
with Customers in revenue recognition. Net sales
include the total invoicing value of products less
sales tax, discounts and rebates. Foreign exchange
differences arising from trade receivables are
recognized as sales adjustments.
The goods Suominen sells are nonwoven rolls.
The customer can benefit from each nonwoven roll
either on its own or together with other resources
readily available to the customer. The delivered goods
have been identified in the contracts Suominen has
made with the customer (for example the quality and
measurements of the product have been defined).
The contracts often define the target for quantities to
be delivered, but the customer is not committed to
the quantities. The supplied quantities are based on
the customer’s purchase orders and each supplied
quantity is invoiced separately.
The performance obligation is satisfied when the
goods have been delivered to the customer, ie. the
performance obligation is satisfied at a point of
time. In most cases the goods are handed over to
the customer when the goods leave the production
plant. If, in accordance with the terms of delivery,
the risks and rewards of ownership of the goods as
well as control over the goods are transferred to the
customer only when the goods have been delivered
to the customer, revenue is recognized only when the
customer has received the goods.
The payment terms and times differ depending on
the customer. The applied payment term and the
length of the payment time are affected by, among
other things, the credit risk and prior payment behavior
of the customer. In addition, the geographical location
of the invoicing production plant as well as that of
the customer have an effect on the payment terms.
Suominen has preferred payment terms defined in the
credit policy, but for commercial reasons it is possible
to deviate from these payment terms. For the most
part trade receivables are due within 30−90 days from
the invoicing date.
There are no significant financing components in the
sales prices and the considerations are paid in cash.
Some of the customer contracts include a definition
of a rebate, which is granted to the customer if
the delivered quantities exceed the predefined
level, i.e. in these cases the sales price includes a
variable consideration. The effect of the variable
consideration on the sales price is taken into account
in revenue recognition by estimating the probability
of the realization of the rebate for each contract.
The estimation is based on the most likely amount.
When estimating the probability, Suominen takes into
account the historical information of the customer
(such as whether deliveries in the past have reached
the level which entitles the customer to receive the
rebate), the current situation at the time of the delivery
of the goods as well as forecasts on future deliveries.
The uncertainty inherent in estimating the variable
consideration is considered to be so immaterial that
the variable consideration has not been constrained.
The estimated sales prices, including potential
discounts and other items which could possibly affect
the sales prices, are reassessed latest at the end of
each reporting period.
141Suominen Annual Report 2025
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The receivable from the customer is recognized
at the amount determined by applying IFRS 15.
This means in practice that both the invoiced trade
receivable from the customer and recognized revenue
are adjusted in accounting with an accrual based on
the estimated rebate amount.
In some of the customer contracts the sales price
of the goods is tied to the raw material costs of
Suominen. The effect of the raw material prices on
sales prices is, however, applied only to future sales
prices and they do not affect the prices of already
delivered goods. As the delivered quantities are distinct
performance obligations, raw material clauses are not
applied retrospectively.
Sales prices are defined in the customer contracts
separately for each product. The price for each
customer is based on, among other things, quantities,
transaction currency and the geographical location
of the customer. Variable considerations as defined in
the conctract are taken into account in determining
the sales prices. Variable considerations (rebates) are
allocated to the performance obligations which are
included in the contract, unless otherwise agreed in
the contract. In these cases the variable considerations
are allocated only to those performance obligations
they relate to.
Suominen has no material incremental costs
of obtaining a contract which would fulfill the
capitalization criteria. Any incremental costs are
recognized as expense when incurred, as the
amortization period of such capitalized incremental
costs would be one year or less. Suominen has no
such costs to fulfill a contract which would fulfill the
capitalization criteria of IFRS 15.95-97.
NOTE 19 Segment reporting and
entity-wide disclosures
EUR thousand
Reportable segments
Suominen has one operating segment, Nonwovens.
The reported segment is comprised of the entire
Group, and the segment figures are consistent with the
Group figures.
The net sales of Suominen consist entirely of the net
sales of the Nonwovens operating segment. All the
products Suominen produces and sells are nonwoven
products, and the production process and technology
of all the products are mainly similar. Other resources
of the Group are also common to all products.
The sales organization of Suominen is organized
geographically as EMEA and Americas business areas.
Account management of major customers (“Global
Accounts”) is, however, centralized and independent of
the business areas.
The production facilities of Suominen are managed
centrally, and also the high level supply planning is a
centralized function. The centralized supply planning
optimizes the use of the Group’s production capacity.
The manufacturing of the products is allocated,
based on the technical parameters of the products
and available production capacity, to the production
facilities. Also the allocation of marketing and R&D
resources on different products or production
technologies is decided centrally.
The chief operating decision maker of Suominen is
the President & CEO, who is assisted by the Executive
Team. The President & CEO makes decisions on
allocating the resources of the Group. However,
material items, such as major investments, as well
as items which are required by governing law to be
decided by the Board of Directors, are presented to the
Board for approval.
Property, plant and equipment, intangible assets
and right-of-use assets by geographical location
2025 2024Finland 14,432 17,106Rest of Europe 53,185 37,382Americas 82,490 95,121Total 150,107 149,609
Net sales by geographical destination as well as net
sales by business area are presented in Note 18.
142Suominen Annual Report 2025
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NOTE 20 Other operating
income and expenses
EUR thousand
Other operating income 2025 2024Gains from disposal of property, plant and equipment 81 113Gains from changes in leasing contracts 4 269Indemnities received and insurance compensations 323 600Rental income 499 471Sales of waste 826 1,022Government and other grants 291 662Other operating income 595 1,815Total 2,619 4,952
Sales of waste consists of sales of waste generated in
the manufacturing process as well as sales of products
which do not fulfill quality requirements.
Other operating expenses 2025 2024Expected and reversed credit losses of trade receivables during the period, net 128 285Losses from changes in leases -6 -6Losses from disposal of property, plant and equipment -7 -1Indemnities and reversals of indemnity accruals -4 -4Other operating expenses -599 -121Total -489 152
Accounting principles
Gains from the disposal of property, plant and
equipment and intangible assets, insurance
compensations and government and other grants as
well as revenues other than from product sales, such
as rental income (Note 21), and proceeds from sale of
waste, are recognized as other operating income. Also
gains arising from changes in leases are recognized as
other operating income.
Losses from the sales of assets, expected credit
losses of trade receivables as well other expenses not
associated with ordinary operations are recognized as
other operating expenses. Losses arising from changes
in lease contracts are also recognized as other
operating expenses.
NOTE 21 Leases and right-of-use
assets
EUR thousand
Suominen owns the majority of its production facilities
(ie. buildings and land) as well as all of its production
lines. The most significant lease contracts Suominen
has consist of the leased production facilities in Italy
and Windsor Locks, USA. In addition, part of the
production facility in Spain is leased. Other lease
contracts are mainly lease contracts of offices, smaller
machinery and equipment, such as forklifts and office
equipment, as well as leases of vehicles.
Suominen acts also as a lessor to a minor extent in
some of its production facilities where it leases parts
of the real estate it owns. These lease contracts are
classified as operating leases as they do not transfer
substantially all the risks and rewards incidental to
ownership of the underlying assets to the lessees. The
lease payments received from these lease contracts
are recognized as other operating income on a
straight-line basis in accordance with the terms of the
lease contracts (Note 20).
Income and expenses in the statement of profit or loss arising from leases 2025 2024Depreciation expense of right-of-use assets -2,872 -2,906Impairment losses of right-of-use assets − -3Rental expenses relating to short-term leases -509 -246Rental expenses relating to leases of low value assets -114 -83Expenses arising from non-lease components of the leasing contracts and non-deductible indirect taxes -31 -35Gains and losses arising from lease modifications, net -2 263Rental income 499 471Total in operating profit -3,031 -2,539Interest expenses on lease liabilities (Note 25) -615 -728Interest expenses on provisions related to leasing contracts (Note 25) -41 -117Total income and expenses -3,687 -3,384
Cash outflow for leases 2025 2024Paid interest expenses on lease liabilities -616 -724Repayment of finance lease liabilities -2,848 -3,312Rental expenses -655 -363Total cash outflow for leases -4,119 -4,399
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Minimum lease payments under non-cancellable operating leases in future periods 2025 2024Within one year 185 86Between 1−5 years 260 252After 5 years 8 56Total 453 393
Commitments to leases not yet commenced are
disclosed in Note 31.
Minimum non-cancellable lease payments (rental income) in future periods 2025 2024Within one year 473 447Between 1−2 years 80 268Between 2−3 years − −Between 3−4 years − −Between 4−5 years − −After 5 years − −Total 554 715
Right-of-use assets
Right-of-use machinery Right-of-use land Right-of-use buildings and equipment Right-of-use office spaces Other right-of-use assets Total 2025Acquisition cost January 1 86 24,038 2,652 1,454 119 28,349Exchange difference − -1,359 -124 -22 0 -1,505Additions 1 32 1,093 10 58 1,195Decreases − -199 -866 -10 0 -1,075Acquisition cost December 31 86 22,512 2,756 1,432 177 26,963Accumulated depreciation and impairment losses January 1 -41 -15,731 -1,331 -139 -105 -17,346Exchange difference − 922 74 3 1 999Decreases − 154 712 8 − 874Depreciation for the reporting period -8 -1,886 -720 -224 -34 -2,872Accumulated depreciation and impairment losses December 31 -48 -16,542 -1,264 -352 -139 -18,346Carrying amount December 31 38 5,970 1,491 1,080 38 8,617
Right-of-use machinery Right-of-use land Right-of-use buildings and equipment Right-of-use office spaces Other right-of-use assets Total 2024Acquisition cost January 1 84 23,100 2,455 1,305 89 27,031Exchange difference − 702 -10 49 6 747Additions 2 236 842 1,475 25 2,580Decreases − − -634 -1,374 -1 -2,009Acquisition cost December 31 86 24,038 2,652 1,454 119 28,349Accumulated depreciation and impairment losses January 1 -33 -13,430 -1,190 -1,201 -70 -15,922Exchange difference − -425 -11 -50 -5 -491Decreases − − 603 1,374 − 1,976Depreciation for the reporting period -7 -1,873 -733 -262 -31 -2,906Impairment losses − -3 − − − -3Accumulated depreciation and impairment losses December 31 -41 -15,731 -1,331 -139 -105 -17,346Carrying amount December 31 45 8,306 1,322 1,316 14 11,003
Depreciation and impairment losses are disclosed in Note 24.
144Suominen Annual Report 2025
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of machinery and equipment and vehicles are included in
short-term leases.
In addition, the lease and non-lease components are
not separated for all asset classes, such as vehicles and
forklifts.
Gains arising from modifications in lease contracts are
recognized as other operating income and losses as other
operating expenses (Note 20).
Lease liabilities
At the commencement date of a lease, Suominen
recognizes a lease liability measured at the present value
of the lease payments to be made over the lease term.
The lease payments include fixed payments less any
lease incentives receivable, variable lease payments that
depend on an index or rate and amounts expected to be
paid under residual value guarantees. If the lease contract
contains a purchase option and it is reasonably certain
that the option will be exercised, the exercise price is
included in the lease payments. Also, if it is reasonable
certain that the lease will be terminated, the termination
penalties are included in the lease payments.
In calculating the present value of the lease liabilities,
Suominen uses either the interest rate implicit in the
lease or, if that is not easily attainable, the incremental
borrowing rate at the commencement date of the lease.
The majority of the lease liabilities are calculated with the
incremental borrowing rate, defined separately for each
Group company taking into account the geographical
location and credit worthiness of each company.
After the commencement date, the carrying amount
of lease liabilities is reduced for the lease payments
made and increased to reflect interest on the lease
liability. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments, such as a change to future payments
resulting from a change in an index or rate used to
determine the lease payments or a change in the
assessment of an option to purchase the asset.
Part of the Group’s lease contracts continue with
a new lease term unless the contract is terminated
during the termination period defined in the contract.
As both the lessee and the lessor have a right to
terminate the contract without the other party’s
consent and without sanctions, the recognized lease
terms of these contracts do not include the use of the
option to extend the lease. In addition, there are some
lease contracts which include options to extend the
lease, but it is unlikely that these options are exercised.
The lease period taken into account of these lease
contract is the initial lease term excluding the use of
the option.
The lease contracts of all Suominen’s leased
production facilities include either an option to extend
the lease or they continue automatically, if they are not
Accounting principles
If a contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration, the contract is or contains a lease.
Suominen assesses at each contract inception whether
a contract is or contains a lease. If the contract is a
lease, Suominen, as a lessee, recognizes in accordance
with IFRS 16 Leases the right-of-use assets and lease
liabilities (Note 14) for the rights and obligations
created by leases.
Suominen applies the recognition exemptions
allowed by IFRS 16. This means that low value
asset leases are recognized as rental expenses on a
straight-line basis in the statement of profit or loss.
Based on the standard as well as the materiality
principle, Suominen has defined that an asset is of
low value if its value as new is EUR 5,000 or less. Such
assets are, for example, computers and other smaller
office equipment.
The recognition exemptions allow also that leases,
where the lease term is initially 12 months or less
and the leases do not contain purchase options, are
recognized as rental expenses on a straight-line basis
in the statement of profit or loss. The election for
short-term leases has to be made by the class of the
underlying asset. In Suominen, for example, leases of
temporary warehouses as well as short-term leases
terminated during the termination period. If neither
of the contract parties has terminated the contract
during the termination period, Suominen redefines the
remaining lease period.
When the lease contract includes variable
lease payments based on an index, the lease
liability is initially measured using the index at the
commencement date of the lease. The lease liabilities
arising from these lease contracts are remeasured
when the lease payments change due to the change in
the index.
Lease liabilities are disclosed in Note 14.
Right-of-use assets
Suominen recognizes right-of-use assets at the
commencement date of the lease. Right-of-use assets
are subsequently measured at cost, less cumulative
depreciation and impairment losses, and are adjusted
for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease
liabilities initially recognized, initial direct cost incurred,
and lease payment made before the commencement
date less any lease incentives received.
Some of the lease contracts of the production
facilities include an obligation to restore the underlying
asset to the condition required by the terms and
conditions of the lease. These restoration obligations
(Note 15) are recognized as provisions in the statement
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of financial position and the initial amount is included
in the cost of the right-of-use asset.
Right-of-use assets are depreciated on a
straight-line basis over the shorter of the lease term
and the estimated useful lives of the assets. If the
ownership of the leased asset transfers to Suominen
at the end of the lease or the cost reflects the exercise
of a purchase option, depreciation is calculated using
the estimated useful life of the asset. The right-of-use
assets are also subject to impairment.
Critical accounting estimates and
judgements
The carrying amounts of the right-of-use assets and
lease liabilities depend on, among other things, the
length of the leasing contracts as well as the potential
options and possibilities to lengthen or shorten the
NOTE 22 Fees paid to auditors
EUR thousand
Fees paid to auditors and expenses related to the
sustainability reporting assurance are included in
administration expenses.
KPMG Oy Ab (KPMG) was elected as the principal
auditor of the Group and the parent company in the
Annual General Meeting of 2025. KPMG was elected
also as the Authorised sustainability auditor.
Ernst & Young Oy (EY) acted as the principal auditor
of the Group and the parent company as well as the
authorized sustainability auditor from the Annual
General Meeting of 2015 until the Annual General
Meering of 2025.
Fees paid to auditors, Suominen Group 2025 2024Fees for statutory audit, KPMG -355 −Fees for statutory audit, EY -88 -547Sustainability reporting assurance, KPMG -58 −Sustainability reporting assurance, EY -44 -72Tax consulting, KPMG -4 −Other services, EY -2 -24Total -552 -642
lease term. The carrying amounts are especially
affected by the estimates made of the lease terms
and possible renewals of the lease agreements of the
production facilities.
When there is a change in the lease term, the lease
liability has to be remeasured by discounting the lease
payments with the discount rate at the date of the
reassessment. Because of this, the estimate of the
lease term also includes an interest rate risk.
The fees paid by the parent company of the Group,
Suominen Corporation, are presented below.
Fees paid to auditors, Suominen Corporation 2025 2024Fees for statutory audit, KPMG -90 −Fees for statutory audit, EY -64 -195Sustainability reporting assurance, KPMG -58 −Sustainability reporting assurance, EY -44 -72Tax consulting, KPMG -4 −Other services, EY 0 -20Total -261 -287
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NOTE 23 Employee benefits
EUR thousand
2025 2024Wages and salaries -44,867 -46,081Share-based payments -589 -540Pensions, defined contribution plans -3,254 -3,313Other personnel expenses -21,030 -20,560Total -69,740 -70,493
Employee benefits by functionCost of goods sold -49,502 -50,212Sales, marketing and administration expenses -18,330 -18,270Research and development -1,909 -2,011Total -69,740 -70,493
Average number of personnel (FTE - full time equivalent) 695 689Number of personnel, end of the reporting period (FTE - full time equivalent) 672 722in Finland 136 146
The increase in personnel relates mainly to the
operations function.
Management remuneration is disclosed in detail in
Note 30 of the consolidated financial statements.
Share-based payments are disclosed in more detail
in Note 27 of the consolidated financial statements.
Accounting principles − pension benefits and
defined benefit plans
The Group has several pension plans in accordance
with local conditions and practices in the countries
where it operates. The plans are generally funded
through premium payments to insurance companies
or similar entities. The pension schemes are in
accordance with local legislation and based on
established local practices. Pension schemes may
include additional pension benefits, options for early
retirement, or compensation for disability.
Pension schemes are classified either as defined
contribution pension plans or defined benefit pension
plans. A defined contribution pension plan is a plan
under which the Group pays fixed contributions into
a separate entity and has no obligation to pay further
contributions if the separate entity has no sufficient
assets to pay all employee benefits. The contributions
to defined contribution plans are charged to profit or
loss in the period to which the contributions relate.
Suominen has a post-employment defined benefit
plan in Italy (TFR, Trattamento di Fine Rapporto).
The plan is unfunded and closed for new entrants.
The benefits paid are based, among other things, on
service years and final salary of the participants. The
obligation is determined based on calculations made
by independent actuaries.
In other countries Suominen has defined
contribution pension plans.
The defined benefit obligations are measured as
the present value of the estimated future cash flows
using interest rates of government securities that have
maturity terms approximating the terms of related
liabilities or similar long-term interests. Plan assets,
if any, are recognized at fair value at the end of the
reporting period.
For the defined benefit plans, costs are assessed
using the projected unit credit method. Under this
method the cost is charged to profit or loss so as to
spread over the service lives of employees. However,
there are normally no other costs than the net interest
arising from the defined benefit plan of Suominen
in Italy.
Only past service costs due to plan amendments as
well as net interest on net defined benefit liability can
be recognized in profit or loss. Service costs, if any,
are recognized in profit or loss as employee benefits
and net interest in financial items. Remeasurements of
net defined benefit liability, such as actuarial gains and
losses, are recognized in other comprehensive income
in the period in which they occur with no subsequent
recycling to profit or loss.
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2025 2024Changes in plan assetsPlan assets January 1 − −Employer contributions 18 7Benefits paid -18 -7Plan assets December 31 − −Significant actuarial assumptionsDiscount rate (%) 3.70 3.45Rate of future price inflation (%) 2.00 2.00Sensitivity analysis of actuarial assumptionsDecrease in discount rate by 0.50 percentage points (2024: 0.50 percentage points)Effect on defined benefit obligation 30 14Increase in discount rate by 0.50 percentage points (2025: 0.50 percentage points)Effect on defined benefit obligation 3 -13Expected payments to plan participants in the future years from the defined benefit obligation2026 (2025) 5 52027 (2026) 5 52028 (2027) 11 52029 (2028) 21 122030 (2029) 5 432031−2035 (2030−2034) 105 102Total 152 172
Defined benefit plans2025 2024Defined benefit liabilities in the statement of financial positionPresent value of unfunded obligations 173 189Deficit 173 189Change in defined benefit obligationPresent value of defined benefit obligation January 1 189 179Charged to profit or loss:Interest expenses 6 6Total recognized in profit or loss (gain - / loss +) 6 6Remeasurements:Actuarial gain (-) / loss (+) from change in financial assumptions -5 11Total remeasurements -5 11Benefits paid -18 -7Present value of defined benefit obligation December 31 173 189
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NOTE 24 Depreciation and amortization and impairment of assets
EUR thousand2025 2024Depreciation and amortization by functionCost of goods sold -14,791 -15,052Sales, marketing and administration expenses -1,844 -2,791Research and development -140 -584Total -16,775 -18,428Depreciation and amortization by asset categoryIntangible rights -1,731 -3,008Other intangible assets -30 -431Buildings and constructions -2,269 -2,258Machinery and equipment -9,630 -9,623Other tangible assets -243 -201Right-of-use assets -2,872 -2,906Total -16,775 -18,428
2025 2024Impairment of assets by functionCost of goods sold -426 -3Total -426 -3Impairment of assets by asset categoryMachinery and equipment -426 −Right-of-use assets − -3Total -426 -3
Impairment losses in 2025 arise from the closure of one production line.
Accounting principles
The amortization of intangible assets is described
in Note 6, the depreciation of property, plant and
equipment in Note 7 and the depreciation of right-
of-use assets in Note 21.
The carrying amounts of property, plant and
equipment as well as of intangible assets are assessed
to determine whether there are any indications that
the carrying amounts of the assets exceed their
recoverable amounts and an impairment loss should
be recognized. Indications of the assets’ possible
impairment can be a significant decline in an asset’s
market value, adverse changes in the business
environment, adverse changes in the extent to which
or manner in which an asset is used or expected to be
used, or a deterioration in financial performance below
what was expected.
If such indications of impairment exist, the
recoverable amounts are measured for those assets
for which there are indications of impairment.
Recoverable amount is the higher of fair value of the
asset less costs of disposal and value in use. When
measuring an asset’s value in use, the future cash
flows derived from the asset are discounted by using
discount rates which reflect the average cost of
capital before taxes of the asset or, if the asset belongs
to a cash generating unit, of that cash generating
unit. The risk inherent in the value in use is captured
by analyzing variations in the amount or timing of
cash flows.
An impairment loss of an asset can be reversed if a
positive change in the estimates of the recoverable
amount has occured. The impairment loss made in
prior years is reversed no more than up to the value
which would have been determined for the asset, net
of amortization or depreciation, had no impairment
loss been recognized in prior years.
Impairment testing of goodwill is presented in
Note 5.
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NOTE 25 Financial income and expenses
EUR thousand2025 2024Financial incomeInterest income from receivables at amortized cost 706 1,370Other interest income 18 16Total 723 1,386
Financial expenses
Interest expenses on liabilities at amortized cost -3,184 -3,106Interest expenses on lease liabilities -615 -728Interest expenses on defined benefit plans -6 -6Interest expenses on discounted provisions -41 -298Other interest expenses -2 -6Financial expenses on sale of trade receivables -1,003 -1,123Other financial expenses -1,265 -1,165Total -6,116 -6,432
Net exchange rate differences -2,074 960Total financial income and expenses -7,467 -4,086
Currency differences in operating profit / loss
Net sales -59 -3Cost of goods sold 725 -514Other operating income and expenses 9 -39
Accounting principles
Accounting of transactions in foreign currencies is
described in Note 1.
Interest expenses are accrued for and mainly
recognized in profit or loss for each period. If an asset
is a qualifying asset as defined in IAS 23 Borrowing
Costs, the borrowing costs that are directly attributable
to the acquisition, construction or production of
a qualifying asset are capitalized to the acquisition
cost of the asset. The capitalization applies mainly to
property, plant and equipment and intangible assets.
Capitalized borrowing costs during the reporting
period were EUR 559 thousand (EUR 287 thousand).
The average capitalization rate used was 3.80%.
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NOTE 26 Income taxes
EUR thousand2025 2024Income tax charge in statement of profit or lossCurrent income tax charge -1,557 -2,827Adjustments in respect of current income tax of previous years 28 31Change in deferred tax assets 764 2,320Change in deferred tax liabilities 2,086 577Other income taxes -20 -49Total income tax charge 1,300 53Income taxes recognized in other comprehensive income Exchange differences 1,449 -749Employee benefits -15 -13Total taxes recognized in other comprehensive income 1,434 -762
The Group companies have tax losses, totaling
EUR 50.0 million (EUR 39.1 million), which can be
applied against future taxable income. Of the tax
losses, 7.3 million euros (0.0 million euros) will expire
within ten years, and the rest do not have an expiry
date. A deferred tax asset has been recognized for tax
losses only to the extent that the management has
estimated in preparing the 2025 financial statements
that Suominen is able to utilize the unused tax losses.
Tax losses for which no deferred tax asset has been
recognized amounted to a total of 21.7 million euros
(18.3 million euros).
Deferred tax liability has not been recognized
in 2025 or 2024 of the undistributed earnings of
Finnish or foreign subsidiaries, as such earnings
can be transferred to the owner without any tax
consequences.
Reconciliation of income tax expense calculated at statutory tax rates
with income tax expense in the statement of profit or loss
2025 2024Profit / loss before income taxes -13,370 -5,343Income taxes at the tax rate applicable to the parent 2,674 1,069Difference due to different tax rates of foreign subsidiaries -264 154Tax exempt income and non-deductible expenses -302 643Deferred taxes recognized during the reporting period in respect of previous years' temporary differences and confirmed tax losses 378 -10Deferred taxes reversed during the reporting period -266 -223Losses, for which no deferred tax asset is recognized -953 -1,576Adjustments in respect of current income tax of previous periods and witholding and other income taxes 7 -18Expenses deducted directly from income taxes 27 13Income taxes in the statement of profit or loss 1,300 53Effective tax rate, % 9.7 1.0
Tax assets and liabilities in the statement of financial positionDeferred tax assets 3,595 2,269Assets for current tax 660 514Deferred tax liabilities 4,278 7,990Liabilities for current tax 5 214
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Accounting principles
The consolidated financial statements include current
taxes, which are based on the taxable results of the
Group companies for the reporting period together
with tax adjustments for previous reporting periods,
calculated in accordance with the local tax rules, and
the change in deferred tax liabilities and assets.
Income taxes which relate to items recognized in
other comprehensive income are also recognized in
other comprehensive income.
IAS 12 Income Taxes requires companies to
recognize a separate deferred tax asset and deferred
tax liability when the temporary differences arising
on recognition of an asset and a liability from a single
transaction are equal. Examples of such transactions
are recognition of leases and decommissioning
obligations
Suominen has some uncertain tax positions due to
local tax audits as the tax authorities have challenged
the tax deductible expenses Suominen has declared
in the income tax returns. Suominen has assessed
for each tax audit whether the interpretations of
the tax authorities are justified and adjusted the
recognized amounts, if needed, in order to correspond
to the expected future payments. Even though the
management estimates that the end results of the
tax audits will not result in material additional costs
exceeding the already recognized amounts, the actual
results can differ from the estimates.
The Group’s deferred tax liabilities and assets have
been calculated for temporary differences, which have
been obtained by comparing the carrying amount
of each asset or liability item with their tax bases.
Deferred tax assets are recognized for deductible
temporary differences and tax losses to the extent
that it is probable that taxable profit will be available,
against which tax credits and deductible temporary
differences can be utilized. In calculating deferred tax
liabilities and assets, the tax rate used is the tax rate in
force at the time of preparing the financial statements
or which has been enacted by the end of the reporting
period. Changes in tax rates have been taken into
account when calculating deferred taxes. Corporate
income tax rate in Finland is 20% (20%).
Principal temporary differences arise, among others,
from depreciation and amortization of property, plant
and equipment and intangible assets and confirmed
tax losses.
IFRIC 23 Interpretation clarifies the accounting of
uncertainty in accounting for income taxes. Under
IFRIC 23 the key test is whether it is probable that
the tax authority will accept the company’s chosen
tax treatment. If it is probable that the tax authority
accepts the company’s chosen tax treatment in
the tax return, there is no uncertainty which would
have to be recognized in the financial statements. If
it is not probable, then the uncertainty is reflected
in the measurement of current or deferred tax. The
uncertainty is reflected in the measurement by using
either the most likely amount or the expected value,
whichever predicts the outcome better.
The judgements and estimates applied in estimating
the uncertainty over an income tax treatment are
reassessed if facts and circumstances change.
In accordance with the interpretation, the company
has to determine whether to consider each tax
treatment separately or together with one or more
other uncertain tax treatments. The approach that
better predicts the resolution of the uncertainty in tax
treatments has to be followed.
Critical accounting estimates and
judgements
Recognition and measurement of deferred tax liabilities
and assets include management estimates, especially
in deferred tax assets arising from confirmed tax losses
of the Group companies or from other temporary
differences. Deferred tax assets are recognized for
deductible temporary differences and tax losses to
the extent that it is probable that taxable profit will
be available against which tax credits and deductible
temporary differences can be utilized. All tax liabilities
and assets are reviewed at the end of the reporting
period and changes are recognized in comprehensive
income.
Group companies can be subjects of tax audits.
In these tax audits the tax authorities can challenge
Suominen’s view of the taxable income and not fully
accept it. In these cases the recognized amounts are
adjusted, if needed, in order to correspond to the
expected future payments. The possible adjustments
as well as the recognized income tax liability are based
on estimates of the outcome of the tax audit.
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Reconciliation of deferred tax assetsRecognized in other Offsetting January 1, Exchange Recognized in comprehensive with deferred December 31, 2025differenceprofit or lossincome or in equitytax liabilities2025Employee benefits 165 − 30 -15 − 180Property, plant and equipment and intangible assets 2,178 1 -147 − − 2,032Leases 1,897 -132 -375 − − 1,390Tax losses 4,325 -525 2,071 − − 5,872Other temporary differences 5,305 -572 -815 1,449 − 5,367Total 13,871 -1,229 764 1,435 − 14,841Offsetting with deferred tax liabilities 11,602 898 − − -542 -11,246Total 2,269 -331 764 1,435 -542 3,595
Recognized in other Offsetting January 1, Exchange Recognized in comprehensive with deferred December 31, 2024differenceprofit or lossincome or in equitytax liabilities2024Employee benefits 217 − -38 -13 − 165Property, plant and equipment and intangible assets 1,948 -30 261 − − 2,178Leases 1,878 66 -46 − − 1,897Tax losses 3,568 245 513 − − 4,325Other temporary differences 4,232 191 1,630 -749 − 5,305Total 11,842 471 2,320 -762 − 13,871Offsetting with deferred tax liabilities -9,794 -415 − − -1,393 -11,602Total 2,048 56 2,320 -762 -1,393 2,269
Reconciliation of deferred tax liabilitiesRecognized in Recognized in other Offsetting January 1, Exchange profit or loss comprehensive with deferred December 31, 2025difference(- expense)income or in equitytax assets2025Property, plant and equipment and intangible assets 14,415 -1,512 1,568 − − 11,336Leases 1,596 -108 371 − − 1,117Other temporary differences 3,581 -364 146 − − 3,071Total 19,592 -1,983 2,086 − − 15,524Offsetting with deferred tax assets -11,602 898 − − -542 -11,246Total 7,990 -1,085 2,086 − -542 4,278
Recognized in Recognized in other Offsetting January 1, Exchange profit or loss comprehensive with deferred December 31, Restated2024difference(- expense)income or in equitytax assets2024Property, plant and equipment and intangible assets 14,374 780 739 − − 14,415Leases 1,616 54 74 − − 1,596Other temporary differences 3,166 180 -235 − − 3,581Total 19,156 1,013 577 − − 19,592Offsetting with deferred tax assets -9,794 -415 − − -1,393 -11,602Total 9,362 598 577 − -1,393 7,990
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NOTE 27 Share-based payments
Suominen has share-based incentive plans targeted
at the key employees of the Group. In accordance
with the terms of the plans, shares in Suominen
Corporation are granted to the participants if vesting
conditions are met. The rewards are partly settled in
cash. The cash portion is intended to cover income
taxes and tax-related costs arising from the reward
to the participant. In some of the plans, the company
also has the right to pay the reward fully in cash
under certain circumstances. The Board of Directors
of Suominen Corporation is entitled to reduce the
rewards as agreed in the plan if the limits set by the
Board of Directors for the share price are not reached.
No reward will be paid, if a participant’s employment
or service ends before the reward payment.
The aim of the plans is to combine the objectives of
the shareholders and the persons participating in the
plans in order to increase the value of the company
in the long-term, to bind the participants to the
company, and to offer them competitive reward plans
based on earning and accumulating the company’s
shares.
A member of the Suominen Leadership Team must
hold 50% of the net number of shares given on the
basis of the plans, as long as his or her shareholding
in total corresponds to the value of half of his or her
annual gross salary. The President & CEO must hold
50% of the net number of shares given on the basis
of the plans until his or her shareholding in total
corresponds to the value of his or her annual gross
salary. Such number of shares must be held as long
as the participant’s employment or service in a Group
company continues
Restricted share unit plan for key employees
The Board of Directors of Suominen Corporation
resolved in December 2025, to establish a new share-
based incentive plan for selected key employees of
the Group.
The plan is intended to be used as a tool in situations
seen necessary by the Board of Directors, for example
ensuring retention of key talents to the company,
attracting a new talent or other specific situations
determined by the Board of Directors.
The Board of Directors may allocate rewards from
the Restricted Share Unit Plan 2026–2028 during
financial years 2026–2028. The value of the rewards
to be paid on the basis of the plan corresponds to
a maximum total of 200,000 shares of Suominen,
including also the proportion to be paid in cash. The
target group of the plan consists of key employees
selected by the Board, including members of the
Leadership Team and the CEO.
The rewards will be paid by the end of May 2029, but
in any event by a of minimum twelve months after the
determination of the reward opportunity. The reward is
based on a valid employment or director contract and
on the continuity of the employment or service.
The 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 Board
may impose a share holding obligation on the shares
delivered as reward.
The President & CEO’s share-based incentive plans,
Charles Héaulmé
The President & CEO is eligible to participate in the
existing share-based incentive plans of Suominen, on a
pro rata basis.
The President & CEO is responsible for the transfer
tax as well as for the personal income tax arising from
the transfer of the shares based on the share-based
incentive plans.
The President & CEO is entitled to a signing bonus
in the form of 200,000 Suominen shares to be
conveyed to him during the third quarter of 2026, if his
employment in Suominen continues.
The President & CEO has a separate share-based
incentive plan, and the vesting conditions are
determined by the Board of Directors of Suominen
annually. The shares earned based on the plan are
conveyed to the President & CEO during the first
quarter of the following year.
Based on this share-based incentive plan, the
President & CEO is expected to acquire 100,000 shares
in Suominen for the 2026 vesting period. Based on
the plan, he will in receive in the first quarter of 2027
a maximum of 500,000 shares in Suominen, if the
comparable EBITDA of Suominen reaches the level
determined by the Board of Directors of Suominen.
For the 2027 vesting period the President & CEO will
receive a minimum of 250,000 shares in Suominen
in the first quarter of 2028. The maximum number of
shares of this vesting period is 500,000, and the Board
of Directors of Suominen will separately determine the
vesting conditions for the remaining 250,000 shares.
The President & CEO’s share-based incentive plan,
Tommi Björnman
The Board of Directors of Suominen Corporation
established on May 19, 2023, a new share-based
incentive plan for the company’s President & CEO
Tommi Björnman. The aim of the plan was to align
the objectives of the shareholders and the President
& CEO in order to increase the value of Suominen in
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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 was expected
to own or acquire up to 30,000 shares of Suominen
Corporation at a price formed in public trading
on Nasdaq Helsinki. Suominen matched 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 included 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 was
paid partly in shares and partly in cash in three equal
installments after each vesting period, provided that
the President & CEO’s service in the company was in
force at the time of the reward payment. The cash
proportion was intended to cover taxes and tax-related
costs arising from the rewards to the President & CEO.
The second vesting period ended in June 2025, and
in total 9,359 shares were transferred to the CEO. The
plan was terminated at the end of June as Tommi
Björnman’s service in the company ended.
Accounting principles
The fair values of the shares to be potentially settled
based on the share-based plans are measured at grant
dates based on the market value of the share. If the
plan includes market conditions, they are taken into
account in the fair value. The fair value is recognized in
profit or loss during the vesting period.
When the vesting conditions of a share-based
incentive plan include market conditions, such as TSR
(“Total Shareholder Return”), the fair value measured at
grant date will not be subsequently changed and the
cost estimate recognized will not be reversed, if the
market condition does not vest. If the other vesting
conditions of the plan (such as service condition and
result-based conditions) are not fulfilled, the cost
estimates based on these conditions are reversed.
Suominen has share-based payment transactions
which have net settlement features for withholding
tax obligations. At the time of exercise or vesting
Suominen withholds a number of shares that is equal
to the monetary value of the employee’s tax obligation
from the total number of shares that would have
otherwise been issued to the employee, and transfers
the amount in cash to tax authorities on behalf of the
employee. In accordance with IFRS 2, in these cases
both the portion settled in shares and the portion
settled in cash are recognized in equity and the fair
value of the cash portion is also based on the fair value
at grant date.
Measurement of instruments granted during the reporting periodShare price at grant date, EUR 2.08Volatility assumption, % 35%Expected dividends, EUR 0Effect of market condition in fair value, % -44%Valuation model Monte CarloFair value per share, EUR 1.39
Effect on the profit for the period and on financial position in 2025EUR thousandExpense (-) for the reporting period -579Recognized in equity during 2025, net 562Liability on December 31, 2025 1Estimate of the amount for settling the employees' tax obligation on December 31, 2025 98
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CEO's (Charles Héaulmé) Annual Shares CEO's (Charles Héaulmé) Total / Share-based incentive Share-based incentive Share-based incentive Share-based incentive CEO's (Tommi Björnman) CEO's (Charles Héaulmé) Contribution 2026, Annual Shares weighted Information on share-based incentive plansplan 2022−2024plan 2023−2025plan 2024−2026plan 2025−2027Matching Share Plansigning bonusPerformance MatchingContribution 2027, FixedaverageMaximum number of shares, including the portion 401,000 793,500 1,090,349 1,375,431 60,000 200,000 500,000 250,000 4,670,280to be settled in cashInitial grant date February 2, 2022 February 2, 2023 February 6, 2024 January 27, 2025 May 19, 2023 August 11, 2025 August 11, 2025 August 11, 2025Vesting date March 21, 2025 March 21, 2026 March 21, 2027 March 21, 2028 June 1, 2024; June 1, September 16, 2026 March 21, 2027 March 21, 20282025; June 1. 2027Vesting conditions Total shareholder return Total shareholder return Total Shareholder Return Total Shareholder Return Shareholding requirement − Shareholding requirement, Shareholding requirement(TSR)(TSR)(TSR) and raw material (TSR) and raw material comparable EBITDAefficiencyefficiencyEmployment precondition Employment precondition Employment precondition Employment precondition Employment precondition Employment precondition Employment precondition Employment precondition until reward paymentuntil reward paymentuntil reward paymentuntil reward paymentuntil reward paymentuntil reward paymentuntil reward paymentuntil reward paymentMaximum contractual life, years 3.1 3.1 3.1 3.1 3.0 1.1 1.6 2.6Remaining contractual life, years 0.0 0.0 1.2 2.2 − 0.7 1.2 2.2 1.7Number or persons at the end of reporting period − − 16 20 − 1 1 1 26Payment method Shares and cash Shares and cash Shares and cash Shares and cash Shares and cash Shares Shares Shares
CEO's (Charles Héaulmé) Annual Shares CEO's (Charles Héaulmé) Share-based incentive Share-based incentive Share-based incentive Share-based incentive CEO's (Tommi Björnman) CEO's (Charles Héaulmé) Contribution 2026, Annual Shares Changes in 2024plan 2022−2024plan 2023−2025plan 2024−2026plan 2025−2027Matching Share Plansigning bonusPerformance MatchingContribution 2027, Fixed Total Outstanding at the beginning of the period 130,500 500,500 845,191 − 40,000 − − − 1,516,191Granted − 51,872 185,205 1,694,261 − 200,000 500,000 250,000 2,881,338Forfeited -128,112 -552,374 -409,059 -596,457 -20,000 − − − -1,706,000Exercised -2,388 − − − -20,000 − − − -22,388Outstanding at the end of the period − − 621,337 1,097,804 − 200,000 500,000 250,000 2,669,141
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NOTE 28 Earnings per share
Profit / loss for the period
EUR thousand 2025 2024Profit / loss for the period -12,070 -5,290Number of sharesAverage share-issue adjusted number of 57,760,108 57,713,587sharesAverage diluted share-issue adjusted 57,949,178 57,878,570number of shares excluding treasury sharesEarnings per shareEURBasic -0.21 -0.09Diluted -0.21 -0.09
Calculation of earnings per share
Basic earnings per share are calculated by dividing
the net result attributable to owners of the parent by
the weighted share-issue adjusted average number
of shares outstanding during the reporting period,
excluding shares acquired by the Group and held as
treasury shares.
When calculating diluted earnings per share the
number of shares is adjusted with the effects of the
share-based incentive plans.
NOTE 29 Adjustments to
statement of cash flows
EUR thousand
Adjustments to cash flow from operations2025 2024Adjustments to profit for the periodIncome taxes -1,300 -53Financial income and expenses 7,467 4,086Depreciation, amortization and impairment losses 17,201 18,431Gains and losses from disposal of property, plant and equipment and intangible assets -74 -112Other non-cash flow items in profit for the period 682 -1,108Total 23,977 21,244
NOTE 30 Information about key management personnel
Management remuneration
Remuneration of the Board of Directors
as paid2025 2024EUR annual fee meeting fee annual fee meeting feeCharles Héaulmé, Chair of the Board of Directors from April 4, 2024 74,000 10,500 74,000 7,000Andreas Ahlström, Deputy Chair of the Board 45,000 13,500 45,000 11,000Björn Borgman 35,000 12,000 35,000 9,000Gail Ciccione from April 25, 2025 35,000 10,000 − −Maija Joutsenkoski from April 25, 2025 35,000 8,500 − −Nina Linander 45,000 14,000 45,000 11,500Laura Remes 35,000 11,500 35,000 9,500Aaron Barsness until April 25,2025 − 3,500 35,000 14,500Jaakko Eskola, Chair of the Board of Directors until April 4, 2024 − − − 500Total 304,000 83,500 269,000 63,000
The Annual General Meeting held on April 25, 2025,
resolved that 25% of the annual remuneration
for the Board of Directors is paid in Suominen
Corporation’s shares. The number of shares
transferred to the members of the Board of Directors
as their remuneration payable in shares for 2025
was 36,013 shares. The shares were transferred on
May 16, 2025, and the value of the transferred shares
totaled EUR 75,987.
The members of the Board of Directors have no
pension arrangements with Suominen. In accordance
with the pension laws in Sweden, the fees paid to
the Swedish members of the Board are subject to
employment pension contributions. These pension
contributions were EUR 11,837 (in 2024: EUR 16,215)
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Suominen has separate consulting agreements with
two of the members of the Board of Directors, Laura
Remes and Gail Ciccione. The services purchased from
them in 2025 based on the consulting agreements
were as follows: Laura Remes EUR 19.5 thousand and
Gail Ciccione EUR 24.1 thousand.
The members of the Board of Directors have no
specific agreements related to termination of the
membership in the Board due to a public tender offer.
Remuneration of the President & CEO
Charles Héaulmé from August 11, 2025
as paid
EUR 2025Salaries 254,429Paid bonuses −Share-based payments −Total salaries 254,429Fringe benefits 3,753Total 258,182Supplementary pensions 42,116
A written contract has been made with the President
& CEO, Charles Héaulmé. Based on the contract he
has a six-month period of notice. Should the company
terminate the contract, an additional compensation
corresponding to 12 months’ salary will also be paid.
He would also be entitled to pro-rated payments
of bonus and share-based payment plans. The
President & CEO has no specific agreement related to
termination of contract due to a public tender offer.
Severance payment will not be paid if the President &
CEO resumes serving only as the Chair of the Board.
The retirement age of the President & CEO is 68
years, and the pension laws of the Netherlands are
applied to his statutory pension. The President &
CEO has a supplementary pension plan, with a cost
of 20% of his annual base salary. He is entitled to the
supplementary pension if his assignment in Suominen
ends before his retirement age.
Tommi Björnman until June 30,2025
as paid
EUR 2025 2024Salaries 485,898 480,489Paid bonuses 67,870 58,242Share-based payments 40,604 54,422Total salaries 594,372 593,153Fringe benefits 15,960 11,017Total 610,332 604,170Statutory pensions 91,783 93,457Supplementary pensions 54,965 53,130
The Board of Directors of Suominen Corporation
and Mr. Tommi Björnman, mutually agreed that Mr.
Björnman will step down from his position as the
President & CEO. A written contract was made with
the President & CEO, Tommi Björnman. Based on
Management remuneration
on an accrual basis
2025 2024Other SLT Other SLT EUR thousand CEO's members CEO's membersSalaries and fringe benefits 786 1,352 492 704Termination benefits 462 44 0 70Short-term incentives 68 71 58 66Long-term incentives 123 231 210 91Pensions (statutory) 96 162 93 131Pensions (voluntary) 97 0 53 0Social security expenses 15 22 15 22Total 1,647 1,881 922 1,083
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the agreement, he had a six-month period of notice
and in January 2026 an additional compensation
corresponding to 12 months’ salary, totaling 462,000
euros, was also paid . He had a supplementary pension
plan, with a cost of 11.5% of his annual base salary.
A part of the CEO Tommi Björnman’s share-based
plan vested, and shares were transferred to him in
June 2025. The number of the shares transferred was
9,359 shares. The value of the shares and the portion
settled in cash was in total EUR 40,604.
Janne Silonsaari June 30-August 10, 2025
as paid
EUR 2025Salaries 24,504Total salaries 24,504Fringe benefits 1,528Total 26,032Statutory pensions 4,584
Janne Silonsaari, EVP, CFO, acted as the interim CEO
from June 30, 2025 until August 10, 2025. His post as
the interim CEO ended when the new CEO Charles
Héaulmé joined Suominen on August 11, 2025. During
the time Janne Silonsaari acted as the interim CEO,
he received increased base salary without any specific
extra benefits.
Remuneration of other members of the Suominen
Leadership Team
as paidEUR 2025 2024Salaries 1,309,078 849,958Paid bonuses 70,790 65,814Sevarance payments 43,500 153,495Share-based payments 1,253 −Total salaries 1,424,621 1,069,267Fringe benefits 42,869 41,358Total 1,467,490 1,110,625Statutory pensions 154,587 140,223
The members of the Leadership Team normally
have no other pension arrangements than statutory
pensions. Supplementary pension arrangements in the
USA are included in statutory pensions. The retirement
age of other members of the Leadership Team is
according to the normal local legislation.
A rental agreement of an office was made with a
company which is controlled by a member of the
Suominen Leadership Team. The paid rents were
EUR 2.8 thousand in 2024 (EUR 4.8 thousand in 2024).
Management’s share ownership
number of shares
December 31, December 31, 20252024Board of DirectorsCharles Héaulmé* − 19,902Andreas Ahlström, Deputy Chair of the Board 36,320 30,989Björn Borgman 32,312 28,166Gail Ciccione from April 25, 2025 4,146 −Maija Joutsenkoski from April 25, 2025 4,146 −Nina Linander 37,159 31,828Laura Remes 10,366 6,220Aaron Barsness until April 25, 2025 − 8,723Total 124,449 125,828Total % of shares and votes 0.21% 0.22%
Management’s share ownership
number of shares
December 31, December 31, 20252024* Charles Héaulmé’s share ownership is presented in 2024 in Board of Directors’ share ownership and in 2025 in Suominen Leadership Team’s share ownership. Suominen Leadership TeamCharles Héaulmé* 44,750 −François Guetat − −Markku Koivisto 53,172 53,172Minna Rouru 1,300 −Janne Silonsaari − −Mark Ushpol − −Tommi Björnman − 39,556Jonni Friman − −Total 99,222 92,728Total % of shares and votes 0.17% 0.16%* Charles Héaulmé’s share ownership is presented in 2024 in Board of Directors’ share ownership and in 2025 in Suominen Leadership Team’s share ownership.
Share-based incentives plans are disclosed in
Note 27 of the consolidated financial statements. The
expense accrual, excluding social costs, based on the
non-vested share-based incentive plans in accordance
with IFRS standards was EUR 598 thousand for the
related parties for the reporting period.
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NOTE 32 Events after the
reporting period
The Shareholders’ Nomination Board
proposed on January 26, 2026 the number
of members, on the composition, and on the
Chair of the Board of Directors to the Annual
General Meeting 2026 of Suominen
The Shareholders’ Nomination Board of Suominen
Corporation proposes to the Annual General Meeting
2026 that the number of Board members will be
decreased from seven to six.
The Nomination Board proposes to the Annual
General Meeting that Andreas Ahlström, Gail Ciccione,
Nina Linander, Maija Joutsenkoski and Laura Remes
would be re-elected as members of the Board of
Directors and that Ville Vuori would be elected as a
new member of the Board of Directors.
Out of the current Board members, Björn Borgman
is not available as a candidate for the Board of
Directors. Additionally, the current Chairman of the
Board, Charles Héaulmé, has decided to step out from
the Board of Directors due to his role as the President
& CEO of the company.
Ville Vuori (b. 1973, B.Sc. (Mech. Eng.), eMBA, Finnish
citizen) currently acts as the Chairman of the Boards of
Incap Oyj and Aspocomp Oyj. Prior to that, he served
as the CEO of Kemppi Oy and Incap Oyj.
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
exceptions of Andreas Ahlström who acts currently as
the CEO of Ahlström Invest B.V. and Maija Joutsenkoski
who acts as the Investment Director at A. Ahlström
Corporation. The largest shareholder of Suominen
Corporation, Ahlstrom Capital B.V., belongs to the
same group of companies as Ahlström Invest B.V. and
A. Ahlström Corporation.
The Nomination Board proposes to the Annual
General Meeting that Ville Vuori would be elected as
the Chair of the Board of Directors.
With regard to the election procedure for the
members of the Board of Directors, the Nomination
Board recommends that the 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 board member candidates possess the
required competences, has determined that the
proposed Board of Directors as a whole has the best
possible expertise for the company and that the
composition of the Board of Directors meets the other
requirements of the Finnish Corporate Governance
Code for listed companies.
NOTE 31 Contingent liabilities
EUR thousand
2025 2024Guarantees and other commitmentsGuarantees on own commitments 1,088 1,921Other own commitments 17,174 18,307Total 18,262 20,228Other contingenciesContractual commitments to acquire property, plant and equipment 3,669 11,267Commitments to leases not yet commenced 458 274Total 4,127 11,541
Guarantees on own commitments are guarantees
given to suppliers.
Some subsidiaries of Suominen have guaranteed
the external loans of Suominen Corporation. The
maximum guaranteed amount is the unpaid principal
of the loans and unpaid accrued interest expenses at
the end of the reporting period.
Minimum lease payments under non-cancellable
operating leases in future periods are disclosed in
Note 21.
Accounting principles − contingent liabilities
A contingent liability is a possible obligation which
is not recognized as a liability in the statement of
financial position as, for example, its existence is not
yet confirmed and it is not in control of the company.
The management uses estimates to assess the amount
of contingent liabilities.
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Proposal on the Board remuneration
The Nomination Board proposes that the remuneration
of the Board of Directors remains unchanged and
would be as follows: the Chair would be paid an
annual fee of EUR 74,000, the Deputy Chair an annual
fee of EUR 45,000 and other Board members an
annual fee of EUR 35,000. 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 2026 of the company is published.
Compensation for expenses will be paid in
accordance with the company’s valid travel policy.
The composition of the Nomination Board
The members of the Nomination Board, as of
September 2, 2025, are Jyrki Vainionpää (President
& CEO of A. Ahlström Corporation) as a member
appointed by Ahlstrom Capital B.V., Mikael Etola (CEO
of Etola-Yhtiöt) as a member appointed by Etola Group
Oy and Ville Vuori (Board Professional) as a member
appointed by Oy Etra Invest Ab. Charles Héaulmé,
Chair of Suominen’s Board of Directors, serves as the
fourth member of the Nomination Board.
Jyrki Vainionpää acts as the Chair of the Nomination
Board.
All of the proposals made by the Nomination Board
were unanimous, except that Charles Héaulmé
and Ville Vuori abstained from participating in the
decision-making relating to the Nomination Board’s
proposal for the Chair of the Board.
The Board of Directors of Suominen Corporation will
include the proposals submitted by the Nomination
Board to the Notice of the Annual General Meeting of
Suominen which will be published at a later date. The
Annual General Meeting of Suominen Corporation is
scheduled to be held on April 15, 2026.
Commencement of a new plan period in the
share-based Long-Term Incentive Plan for
management and key employees
Based on the existing share-based Long Term
Incentive Plan for management and key employees,
communicated as a stock exchange release on
February 6, 2024, Suominen disclosed on January
29, 2026, that the Board of Directors of Suominen
Corporation has decided on the commencement of a
new plan period covering the years 2026–2028.
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 criteria of the performance period
2026–2028 are tied to Absolute Total Shareholder
Return during the years 2026–2028 (weight 40%),
Earnings Before Interests and Taxes (EBIT) in fiscal
year 2028 (weight 40%), and the company’s target
to improve its raw material efficiency (weight 20%),
measured for fiscal year 2028. 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 1,500,000
shares of Suominen, including also the proportion to
be paid in cash. The target group in the performance
period 2026–2028 consists of 28 key employees,
including the President & CEO and other members of
the Suominen Leadership 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 Suominen Leadership Team member must
hold 50% of the received shares until the value of
the Suominen Leadership Team member’s total
shareholding in Suominen equals to 50% of the
member’s annual gross salary for the calendar year
preceding the payment of the reward. Respectively,
the President & CEO must hold 50% of the received
shares until the value of the President & CEO’s total
shareholding in Suominen equals to the value of the
President & CEO’s annual gross salary for the calendar
year preceding the payment of the reward. Such
number of Suominen shares must be held as long as
the membership in the Suominen Leadership Team or
the position as the President & CEO continues.
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Amendments to the ongoing performance
periods
Board of Directors has also resolved on amendments
to the performance criteria for the ongoing
performance periods 2024–2026 and 2025–2027.
The Board has resolved that for both the performance
periods, raw material efficiency will be measured based
on the final year of the respective performance period
(previously based on the first year of the performance
period).
Three-year profitability improvement
program and new operating model
Suominen announced on January 29, 2026 that is
was launching a three-year program to improve the
company’s profitability. The Full Potential Program
targets delivering 10% EBITDA and a 2x–3x leverage
ratio (net debt/EBITDA) by 2028. The program will
involve an estimated investment of approximately
EUR 30 million over the three years, of which
transformation costs are estimated at EUR 10 million
and capital expenditures to upgrade manufacturing
capabilities around EUR 20 million. The Full Potential
Program does not include investment in capacity
expansion.
Suominen also introduced a new functional
operating model, Effective February 1, 2026, to
strengthen focus on strategic priorities, sharpen
accountability across the organization, and
create a tighter connection between customer
needs, technology development, and operational
performance.
In the new model, commercial functions are
brought together to reinforce focus on growth and
business development and ensuring strong strategic
alignment between R&D and customer management.
The sales organization will build deep global expertise
while maintaining a strong local presence to serve
customers effectively across all markets, under the
leadership of the Chief Commercial and Technology
Officer (CCTO).
The role of Chief Operating Officer (COO) is
being broadened to command all factories, safety,
manufacturing engineering, procurement, and supply
chain. With this change, Suominen aims to strengthen
operational reliability and output by sharpening its
focus on manufacturing performance and ensuring
systematic deployment of best practices, continuous
improvement, and harmonized processes.
The changes aim to strengthen profit and loss
accountability, enhance execution discipline, and
improve decision-making across both operations and
commercial functions.
Changes in the Suominen Leadership Team
To facilitate Suominen’s transformation and transition
into the new operating model, Suominen has
appointed Kimmo Raunio (M. Sc. (Tech), Industrial
Engineering and Management) as the CFO and
member of Suominen Leadership Team latest as of
June 1, 2026.
Until then, Suominen’s CFO Janne Silonsaari will
continue in his current role. Janne Silonsaari has
decided to leave the company and will support the
transition until mid-June 2026.
Kimmo Raunio is an experienced finance
executive with a strong track record in the industrial
manufacturing sector and brings with him executive
level experience of driving turnaround and
performance improvement initiatives at both group
and site levels. Kimmo Raunio joins Suominen from
Fortaco Group, where he has worked for 13 years in
various finance roles, latest as CFO and Deputy CEO.
Markku Koivisto, currently EVP, EMEA and CTO, has
been appointed Chief Commercial and Technology
Officer.
Mark Ushpol, EVP, Americas, will step down from the
Suominen Leadership Team and serve for six months
as EVP, Strategic projects.
Marika Väkiparta, LL.M., currently Suominen VP,
Business Transformation, has been appointed Chief
Strategy and Transformation Officer and interim
General Counsel.
On February 26, 2026, Suominen announced that
Minna Rouru, Chief People & Communications Officer,
and a member of the Suominen Leadership Team
leaves the company at the latest on August 26, 2026,
to take on a role in another company.
Suominen Leadership Team
as of February 1, 2026:
- Charles Héaulmé, President & CEO
- Janne Silonsaari, CFO (until latest May 31, 2026)
- Kimmo Raunio, CFO (latest as of June 1, 2026)
- Markku Koivisto, Chief Commercial & Technology
Officer
- Francois Guetat, Chief Operating Officer
- Minna Rouru, Chief People & Communications
Officer
- Marika Väkiparta, Chief Strategy & Transformation
Officer and interim General Counsel
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Key ratios per share
Key ratios per share are share-issue adjusted.
2025 2024 2023
Earnings per share, EUR -0.21 -0.09 -0.22
Earnings per share, EUR, diluted -0.21 -0.09 -0.22
Cash flow from operations per share, EUR 0.21 0.07 0.53
Equity per share, EUR 1.66 2.04 2.17
Price per earnings per share (P/E) ratio -8.57 -24.87 -12.85
Dividend per share, total, EUR* 0.00 0.00 0.10
Dividend payout ratio, % N/A N/A -45.1
Dividend yield, % N/A N/A 3.51
Number of shares, end of period, excluding treasury shares 57,772,475 57,727,103 57,692,459
Average number of shares excluding treasury shares 57,760,108 57,713,587 57,656,044
Average share-issue adjusted number of shares excluding treasury shares 57,760,108 57,713,587 57,656,044
Share price, end of period, EUR 1.79 2.28 2.85
Share price, period low, EUR 1.56 1.96 2.48
Share price, period high, EUR 2.73 2.93 3.48
Volume-weighted average price during the period, EUR 1.89 2.53 2.85
Market capitalization, EUR million 103.4 131.6 164.4
Number of traded shares during the period 1,096,086 951,426 2,743,668
Number of traded shares during the period, % of average number of shares (share turnover) 1.9 1.7 4.8
* 2025 proposal by 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 / loss for the period
Share-issue adjusted average number of shares
excluding treasury shares
Diluted earnings per share (EPS) =
Profit / loss for the period
Average diluted share-issue adjusted number of shares
excluding treasury shares
Calculation of earnings per share is disclosed in Note 28.
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
2025 2024
Cash flow from operations, EUR thousand 12,218 3,857
Share-issue adjusted number of shares excluding treasury shares, end
of the reporting period 57,772,475 57,727,103
Cash flow from operations per share, EUR 0.21 0.07
2025 2024
Total equity attributable to owners of the parent, EUR thousand 96,102 117,608
Share-issue adjusted number of shares excluding treasury shares, end
of the reporting period 57,772,475 57,727,103
Equity per share, EUR 1.66 2.04
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
2025 2024
Dividend per share x 100 0.00 0.00
Share price at end of the period, EUR 1.79 2.28
Dividend yield, % N/A N/A
2025 2024
Dividend per share x 100 0.00 0.00
Basic earnings per share, EUR -0.21 -0.09
Dividend payout ratio, % N/A N/A
2025 2024
Share price at end of the period, EUR 1.79 2.28
Basic earnings per share, EUR -0.21 -0.09
Price per earnings per share (P/E) -8.57 -24.87
Reference
The proposal by the Board
Note 28
Reference
Note 13
Reference
Note 13
Note 28
Market capitalization
Market capitalization =
Number of shares at the end of reporting period excluding treasury
shares x share price at the end of period
2025 2024
Number of shares at the end of reporting period excluding treasury shares 57,772,475 57,727,103
Share price at end of the period, EUR 1.79 2.28
Market capitalization, EUR million 103.4 131.6
Reference
Note 13
Note 13
Share turnover
Share turnover =
The proportion of number of shares traded during the period to
weighted average number of shares excluding treasury shares
2025 2024
Number of shares traded during the period 1,096,086 951,426
Average number of shares excluding treasury shares 57,760,108 57,713,587
Share turnover, % 1.9 1.7
Reference
Note 13
Note 13
165Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Income statement
EUR
Note January 1−December 31, 2025 January 1−December 31, 2024
Net sales 2 24,128,193.98 28,362,537.37
Cost of goods sold -3,282,479.37 -3,786,863.40
Gross profit 20,845,714.61 24,575,673.97
Other operating income 3 25,388.75 382,008.70
Sales and marketing expenses -1,492,561.76 -1,651,006.71
Research and development -1,054,256.99 -1,073,766.16
Administration expenses -11,318,415.61 -10,798,106.62
Other operating expenses 3 -7,350,870.27 -9,077,480.29
Operating profit / loss -345,001.27 2,357,322.89
Financial income
Income from group companies 7 9,673,859.54 9,953,216.14
Other income 7 576,232.28 5,932,594.22
Financial expenses
Expenses to group companies 7 -160,067.91 -454,190.56
Other expenses 7 -14,082,281.22 -4,464,366.36
Total financial income and expenses -3,992,257.31 10,967,253.44
Parent company financial statements (FAS)
Note January 1−December 31, 2025 January 1−December 31, 2024
Profit / loss before appropriations and income taxes -4,337,258.58 13,324,576.33
Appropriations
Change in depreciation difference 8 636,471.78 174,088.55
Group contributions 8 − -3,635,000.00
Total appropriations 636,471.78 -3,460,911.45
Income taxes 9 27,666.53 -1,637,495.41
Profit/loss for the period -3,673,120.27 8,226,169.47
166Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Balance sheet
EUR
Note December 31, 2025 December 31, 2024
ASSETS
Non-current assets
Intangible assets 6, 10 1,006,608.83 2,576,497.98
Tangible assets 6, 11 1,184,627.58 1,212,515.69
Investments
Shares in subsidiaries 12 118,363,783.56 113,363,783.56
Other investments 12 192.06 192.06
Loan receivables from group companies 13 64,319,148.94 89,220,975.84
Total non-current assets 184,874,360.97 206,373,965.13
Current assets
Loan receivables from group companies 13 40,858,214.77 14,403,916.05
Trade receivables from group companies 13 69,890.47 69,346.49
Other current receivables 13 161,612.03 120,799.60
Prepaid expenses and accrued income 13 1,812,593.22 1,581,909.14
Cash and cash equivalents 29,432,379.47 37,799,925.53
Total current assets 72,334,689.96 53,975,896.81
TOTAL ASSETS 257,209,050.93 260,349,861.94
167Suominen Annual Report 2025
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EUR
Note December 31, 2025 December 31, 2024
EQUITY AND LIABILITIES
Equity
Share capital 15 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 18,795,433.22 10,569,263.75
Profit/loss for the period -3,673,120.27 8,226,169.47
Total equity 14 127,355,292.68 131,028,412.95
Untaxed reserves
Depreciation difference 383,940.25 1,020,412.03
Liabilities
Non-current liabilities
Interest-bearing liabilities
Debentures 16 50,000,000.00 50,000,000.00
Loans from financial institutions 16 50,000,000.00 −
Total non-current liabilities 100,000,000.00 50,000,000.00
EUR
Note December 31, 2025 December 31, 2024
Current liabilities
Interest-bearing liabilities
Loans from financial institutions 16 − 40,000,000.00
Current loans from group companies 16 24,835,936.69 30,676,964.77
Interest-free liabilities
Trade payables and other current liabilities 17 1,922,635.18 1,978,616.37
Other current liabilities to group companies 17 − 3,635,000.00
Accrued expenses 17 2,711,246.13 2,010,455.82
Total current liabilities 29,469,818.00 78,301,036.96
Total liabilities 129,469,818.00 128,301,036.96
TOTAL EQUITY AND LIABILITIES 257,209,050.93 260,349,861.94
168Suominen Annual Report 2025
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Cash flow statement
EUR
Note January 1−December 31, 2025 January 1−December 31, 2024
Cash flow from operations
Profit/loss for the period -3,673,120 8,226,169
Adjustments to profit for the period 18 6,193,999 -3,243,153
Cash flow from operations before change in net working capital 2,520,878 4,983,016
Increase (-) or decrease (+) in trade and other receivables -93,500 -109,371
Increase (+) or decrease (-) in interest-free current liabilities -216,687 686,615
Cash flow from operations before payments of financial items
and income taxes 2,210,691 5,560,260
Paid and received interests and other financial items 2,598,050 3,977,366
Group contribution paid -3,635,000 -1,125,000
Paid income taxes -239,215 -329,274
Cash flow from operations 934,526 8,083,353
Cash flow from investments
Capital expenditure 10, 11 -163,322 -640,860
Proceeds from sale of fixed assets 10, 11 464 1,956
Dividend income from subsidiaries 7 2,459,129 2,374,321
Cash flow from investments 2,296,272 1,735,418
EUR
Note January 1−December 31, 2025 January 1−December 31, 2024
Cash flow from financing
Drawdown of non-current interest-bearing liabilities 16 50,000,000 −
Drawdown of current interest-bearing liabilities 16 88,000,000 160,000,000
Repayment of current interest-bearing liabilities 16 -128,000,000 -160,000,000
Change in cash pool liabilities/receivables 16 -18,429,966 -22,302,658
Distribution of dividend 14 − -5,769,246
Cash flow from financing -8,429,966 -28,071,904
Change in cash and cash equivalents -5,199,169 -18,253,133
Cash and cash equivalents 1 January 37,799,926 53,688,030
Exchange difference on cash and cash equivalents -3,168,378 2,365,029
Change in cash and cash equivalents -5,199,169 -18,253,133
Cash and cash equivalents 31 December 29,432,379 37,799,926
169Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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 (address:
Keilaranta 13 A, 02150 Espoo, 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). If the accounting principles applied
under the Finnish Accounting Standards are consistent
with the International Financial Reporting Standards
(IFRS), the principle has not been repeated in the
parent company’s financial statements. The accounting
principles applied under IFRS are presented in notes
to the consolidated financial statements. Where the
accounting principles under the Finnish Accounting
Standard differ from IFRS, they are presented in the
notes to the parent company’s financial statements.
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 are recognized at
cost or at cost less impairment losses.
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.
NOTE 2 Net sales
EUR
January 1−
December 31,
2025
January 1−
December 31,
2024
Net sales
Sales of corporate services 18,429,164 21,874,465
Royalty income 5,724,612 6,474,895
Currency exchange differences
of sales -25,582 13,177
Total 24,128,194 28,362,537
NOTE 3 Other operating income
and expenses
EUR
January 1−
December 31,
2025
January 1−
December 31,
2024
Other operating income
Operating subsidies and grants
received − 276,193
Other operating income from
Group companies 13,280 97,965
Other operating income 12,109 7,850
Total 25,389 382,009
Other operating expenses
Services purchased from Group
companies -7,350,870 -9,050,757
Other operating expenses − -26,723
Total -7,350,870 -9,077,480
170Suominen Annual Report 2025
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NOTE 4 Personnel expenses
EUR
January 1−
December 31,
2025
January 1−
December 31,
2024
Salaries -4,800,479 -4,381,687
Pension expenses -737,964 -734,612
Other personnel costs -140,496 -170,144
Total -5,678,939 -5,286,443
Average number of personnel 36 35
Number of personnel,
end of period 36 33
Management remuneration
Management remuneration is presented in Note 30
of the consolidated financial statements.
NOTE 5 Audit fees
EUR
January 1−
December 31,
2025
January 1−
December 31,
2024
Statutory audit, KPMG -89,901 −
Statutory audit, EY -64,434 -195,214
Tax consulting, KPMG -4,331 −
Sustainability reporting assurance,
KPMG -58,000 −
Sustainability reporting assurance,
EY -44,304 -72,000
Other services − -20,036
Total -260,970 -287,250
KPMG Oy Ab has been acting as the principal auditor
of the Group and the parent company since the
Annual General Meeting of 2025. Previously, Ernst &
Young Oy (EY) acted as the principal auditor until the
Annual General Meeting of 2025.
NOTE 6 Depreciation,
amortization and impairment
EUR
January 1−
December 31,
2025
January 1−
December 31,
2024
Depreciation, amortization and
impairment by function
Cost of goods sold -672,681 -959,154
Sales and marketing expenses -310,582 -441,737
Research and development -103,806 -104,977
Administration expenses -666,860 -1,119,802
Total -1,753,930 -2,625,670
Depreciation, amortization and
impairment by asset category
Machinery and equipment -68,396 -54,651
Intangible rights -1,685,534 -2,571,019
Total -1,753,930 -2,625,670
171Suominen Annual Report 2025
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NOTE 7 Financial income and expenses
EUR
January 1−December 31,
2025
January 1−December 31,
2024
Interest income from group companies 7,143,990 7,494,430
Interest income from others 576,232 1,254,699
Dividend income from Group companies 2,459,129 2,374,321
Other financial income from Group companies 70,741 84,465
Net currency exchange differences -9,204,843 4,677,895
Interest expenses to Group companies -160,068 -454,191
Interest expenses to others -3,544,158 -3,225,427
Other financial expenses to others -1,333,279 -1,238,939
Total -3,992,257 10,967,253
NOTE 8 Appropriations
EUR
January 1−December 31,
2025
January 1−December 31,
2024
Increase (-) or decrease (+) in cumulative depreciation difference 636,472 174,089
Given Group contributions − -3,635,000
Total 636,472 -3,460,911
NOTE 9 Income taxes
EUR
January 1−December 31,
2025
January 1−December 31,
2024
Income taxes for the financial year − -1,665,492
Withholding taxes and other direct taxes − -3,000
Income taxes from previous years 27,667 30,996
Total 27,667 -1,637,495
NOTE 10 Intangible assets
EUR
Intangible rights
Advance
payments and
construction
in progress Total 2025 Total 2024
Acquisition cost January 1 19,507,342 62,257 19,569,599 21,294,526
Additions 55,447 60,198 115,645 109,218
Decreases and disposals -802,609 − -802,609 -1,834,148
Acquisition cost December 31 18,760,180 122,455 18,882,635 19,569,596
Accumulated amortization January 1 -16,993,101 − -16,993,101 -16,256,226
Amortization for the period -1,685,534 − -1,685,534 -2,571,019
Decreases and disposals 802,609 − 802,609 1,834,148
Accumulated amortization December 31 -17,876,026 − -17,876,026 -16,993,098
Carrying amount December 31 884,154 122,455 1,006,609 2,576,498
172Suominen Annual Report 2025
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NOTE 11 Tangible assets
EUR
Land and
water
areas
Machinery and
equipment
Other tangible
assets
Advance
payments and
construction
in progress Total 2025 Total 2024
Acquisition cost January 1 0 398,046 70,374 964,328 1,432,748 1,006,684
Additions − 25,331 − 15,590 40,921 518,334
Decreases and disposals − -23,842 − − -23,842 -92,270
Reclassifications − 15,495 − -15,495 − −
Acquisition cost December 31 0 415,030 70,374 964,423 1,449,827 1,432,748
Accumulated depreciation
January 1 − -215,850 -4,382 − -220,233 -255,872
Depreciation for the period − -60,883 -7,513 − -68,396 -54,651
Decreases and disposals − 23,428 − − 23,428 90,290
Accumulated depreciation
December 31 − -253,305 -11,895 − -265,200 -220,233
Carrying amount December 31 0 161,725 58,479 964,423 1,184,628 1,212,516
NOTE 12 Investments
EUR
Shares in Group
companies
Other
investments Total 2025 Total 2024
Carrying amount January 1 113,363,784 192 113,363,976 113,363,976
Investments 5,000,000 − 5,000,000 −
Carrying amount December 31 118,363,784 192 118,363,976 113,363,976
Group companies are presented in Note 8 of the consolidated financial statements.
Other investments
Share of shares
and votes, %
Number
of shares
Nominal value
of shares,
EUR thousand
Carrying amount
of shares,
EUR thousand
Equity of
the company,
EUR thousand
Profit/loss in the
latest financial
statements,
EUR thousand
Kiinteistö Oy Killinpolku,
Virrat, Finland 25.0 1 8,409 1 N/A N/A
173Suominen Annual Report 2025
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NOTE 13 Receivables
EUR
December 31, 2025 December 31, 2024
Non-current receivables from Group companies
Interest bearing receivables 64,319,149 89,220,976
Total 64,319,149 89,220,976
Total non-current receivables 64,319,149 89,220,976
Current receivables
Other receivables 161,612 120,800
Prepaid expenses and accrued income
Income taxes 408,058 232,689
Transaction costs of loans 627,484 624,312
Prepaid expenses 777,051 724,907
Total prepaid expenses and accrued income 1,812,593 1,581,909
Current receivables from Group companies
Trade receivables 69,890 69,346
Interest-bearing loan receivables 40,858,215 14,403,916
Total 40,928,105 14,473,263
Total other current receivables 42,902,310 16,175,971
NOTE 14 Equity
EUR
December 31, 2025 December 31, 2024
Share capital January 1 and December 31 11,860,056 11,860,056
Share premium account January 1 and December 31 24,680,588 24,680,588
Restricted equity 36,540,644 36,540,644
Reserve for invested unrestricted equity January 1 and December 31 75,692,336 75,692,336
Retained earnings January 1 18,795,433 16,338,510
Distribution of dividend − -5,769,246
Retained earnings December 31 18,795,433 10,569,264
Profit/loss for the period -3,673,120 8,226,169
Unrestricted equity 90,814,649 94,487,769
Total equity December 31 127,355,293 131,028,413
Distributable funds
EUR December 31, 2025
Retained earnings December 31 18,795,433,22
Reserve for invested unrestricted equity 31.12. 75,692,335,90
Profit/loss for the period -3,673,120,27
Distributable funds 90,814,648,85
Funds available for dividend distribution
EUR
Retained earnings December 31 18,795,433.22
Profit/loss for the period -3,673,120.27
Funds available for dividend distribution 15,122,312.95
174Suominen Annual Report 2025
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NOTE 15 Share capital
Share capital and shares are presented in Note 13
of the consolidated financial statements.
NOTE 17 Interest-free liabilities
EUR
December 31,
2025
December 31,
2024
Current interest-free liabilities
Trade payables 1,782,018 1,743,580
Income tax liability − 91,513
Other current liabilities 140,617 143,523
Total current interest-free liabilities 1,922,635 1,978,616
Accrued expenses
Accrued interest expenses 425,482 577,717
Accrued personnel expenses 1,248,373 894,497
Other accrued expenses 1,037,392 538,243
Total accrued expenses 2,711,246 2,010,456
Liabilities to Group companies
Other liabilities to Group companies − 3,635,000
Total − 3,635,000
Total current interest-free liabilities 4,633,881 7,624,072
NOTE 16 Interest-bearing liabilities
EUR
December 31,
2025
December 31,
2024
Non-current interest-bearing liabilities
Debentures 50,000,000 50,000,000
Loans from financial institutions 50,000,000 −
Total non-current interest-bearing liabilities 100,000,000 50,000,000
Current interest-bearing liabilities
Loans from financial institutions − 40,000,000
Loans from Group companies 24,835,937 30,676,965
Total current interest-bearing liabilities 24,835,937 70,676,965
Total interest-bearing liabilities 124,835,937 120,676,965
The financial covenant information presented in Note 14
of the consolidated financial statements relates to loans taken by
the parent company.
Repayments of external non-current interest-bearing
liabilities 2026 2027 2028 2029 2030
Debentures − 50,000,000 − − −
Loans from financial institutions − − 50,000,000 − −
Total − 50,000,000 50,000,000 − −
175Suominen Annual Report 2025
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NOTE 19 Adjustments to cash flow statement
EUR
January 1−December 31, 2025 January 1−December 31, 2024
Adjustment to profit/loss for the period
Change in depreciation difference -636,472 -174,089
Group contributions − 3,635,000
Financial income and expenses 3,992,257 -10,967,253
Income taxes -27,667 1,637,495
Depreciation and amortization 1,753,930 2,625,670
Gains and losses from disposal of fixed assets -50 24
Other non-cash items in profit for the period 1,112,000 −
Total adjustments to profit/loss for the period 6,193,999 -3,243,153
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 Finland
Legal form of entity Public limited liability company
Country of incorporation Finland
Address of entity’s registered office Keilaranta 13 A, 02150 Espoo, Finland
Principal place of business Espoo
Description of nature of entity’s operations and principal activities Manufacturing of nonwovens as roll goods for wipes and other applications
Name of parent entity Suominen Oyj
Translation, non-official version
NOTE 18 Contingent liabilities
EUR
December 31,
2025
December 31,
2024
Guarantees
On behalf of Group companies 9,526,877 11,558,468
On own behalf 83,812 83,812
Total 9,610,689 11,642,280
Guarantees on behalf of Group companies are
guarantees given to suppliers and lessors.
Rental and leasing obligations
Falling due within next 12 months 329,753 333,381
Falling due later 938,141 1,211,590
Total 1,267,894 1,544,971
176Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Proposal by the board of directors
for distribution of funds
The loss of the financial year 2025 of Suominen
Corporation, the parent company of Suominen Group,
was EUR -3,673,120.27. The funds distributable as
dividends, including the loss for the period, were
EUR 15,122,312.95 and total distributable funds were
EUR 90,814,648.85.
The Board of Directors proposes that no dividend
shall be distributed for the financial year 2025 and that
the loss shall be transferred to retained earnings.
There have been no significant changes in the
company’s financial position after the end of the
review period.
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
IFRS accounting standards. The financial statements
of Suominen Corporation as well as the consolidated
financial statements give a true and fair view of both
Suominen Corporation’s and the group companies’
assets, obligations, financial position and profit or loss.
Suominen Corporation’s Report by the Board of
Directors includes a commentary which gives a
true view of the business development and result of
Suominen Corporation and its group companies as
well as a description of material business risks and
uncertainties and of the state of the company.
The sustainability report included in Suominen
Corporation’s Report by the Board of Directors
is prepared in accordance with Chapter 7 of the
Finnish Accounting Act and Article 8 of the taxonomy
regulation by European Union.
Espoo March 10, 2026
Charles Héaulmé
Chair of the Board and
President and CEO
Andreas Ahlström Björn Borgman Gail Ciccione Maija Joutsenkoski Nina Linander Laura Remes
177Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Auditor’s Report
To the Annual General Meeting of Suominen Corporation
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
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, 2025. The financial
statements comprise the consolidated balance sheet,
income statement, 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
balance sheet, income statement, statement of cash
flows and notes.
In our opinion
- the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and 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 the 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 22 to the consolidated financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our
application of materiality. The materiality is determined
based on our professional judgement and is used to
determine the nature, timing and extent of our audit
procedures and to evaluate the effect of identified
misstatements on the financial statements as a
whole. The level of materiality we set is based on
our assessment of the magnitude of misstatements
that, individually or in aggregate, could reasonably
be expected to have influence on the economic
decisions of the users of the financial statements. We
have also taken into account misstatements and/or
possible misstatements that in our opinion are material
for qualitative reasons for the users of the financial
statements.
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. The significant
risks of material misstatement referred to in the EU
Regulation No 537/2014 point (c) of Article 10(2) are
included in the description of key audit matters below.
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.
178Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Revenue recognition
(Note 18 to the consolidated financial statements)
- Revenues of Suominen Group, amounting to EUR
412.4 million, comprise sales of nonwovens to
customers.
- Revenues from customer contracts are recognized
when the risks and rewards of ownership related to
the products delivered have been transferred to the
customer.
- Net sales is a key performance indicator used within
the Group and also has a material impact on the
Group’s key figures, such as EBITDA.
- Due to the risk of incorrect timing of revenue
recognition for sales transactions, revenue
recognition is considered a key audit matter.
- Our audit procedures included, among others:
- We gained an understanding of the revenue
recognition principles and practices and assessed
the principles in relation to the applicable IFRS
Accounting Standards.
- We obtained an understanding of the revenue
recognition process, including testing of internal
controls, where applicable
- We inspected sales transactions on a sample
basis, by comparing them with invoices,
contracts, delivery documents, and payments
received. In addition, sales transactions were
examined using substantive analytical procedures.
- To test appropriate timing of revenue recognition
we compared sales transactions, invoices, and
their delivery terms to the revenue recognition
date, and inspected credit notes from the
beginning of 2026.
- In addition, we considered the appropriateness of
the disclosures for revenues.
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Valuation and depreciation of property, plant and equipment
(Notes 7 and 24 to the consolidated financial statements)
- On 31 December 2025, the carrying amount of
Group’s property, plant and equipment totaled EUR
124.8 million, representing 46% of the consolidated
total assets. Of the total, EUR 28.7 million is
attributable to assets under construction, including
the Group’s two significant capital expenditure
projects. Depreciation and impairment losses on
property, plant and equipment amounted to EUR
12.6 million.
- The carrying amount of property, plant, and
equipment is significant, and useful lives determined
for property, plant, and equipment requires
management judgments.
- Property, plant, and equipment are tested for
impairment if there are indications that that an asset
may be impaired. Testing requires management to
make estimates of the amount and timing of future
cash flows.
- For the reasons stated above, the valuation and
depreciation of property, plant and equipment are
considered a key audit matter.
- Our audit procedures included, among others:
- We gained an understanding of the processes
related to capital expenditures, and assessed
useful lives of the assets, their measurement, and
fulfilment of the capitalization criteria.
- We evaluated internal control arrangements
and tested controls relating, in particular, to the
approval of capital expenditures and purchase
invoices.
- We performed substantive audit procedures
focusing, in particular, on the additions to
property, plant and equipment.
- We assessed the management process to
evaluate the appropriateness of the depreciation
periods.
- We evaluated the reasonableness of the
management estimates underlying the testing
calculations for property, plant and equipment.
- In addition, we considered the appropriateness of
the disclosures for property, plant and equipment.
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THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Financing arrangements and covenants
(Notes 3 and 14 to the consolidated financial statements)
- In June 2025, Suominen entered into a single-
currency syndicated credit facility agreement which
consists of a EUR 50 million term loan and a EUR
50 million revolving credit facility with a maturity
of three years with a one-year extension option.
The new credit facility includes leverage ratio
and gearing as financial covenants. The financial
covenants of the syndicated credit facility have to
be fulfilled quarterly.
- Company has agreed with the lenders about
amendment of the covenant thresholds.
Management has prepared cash flow forecasts and
based on current projection, including profitability
improvement actions, the company expects to
meet covenant conditions and maintain sufficient
liquidity for the 12 months following the reporting
date.
- The assessment of the financing arrangements and
covenants is a key audit matter due to negative
financial performance and the significant impact
of the financing arrangements on the Group’s
financial position, as well as the view given in the
consolidated financial statements.
- We analyzed the forecasts prepared by
management and evaluated the key assumptions
underlying those forecasts, such as sales volumes
and operating margins, including assumptions
related to the planned profitability improvement
measures.
- We familiarized us with the agreements related
to the executed financing arrangements. With
the involvement of KPMG IFRS specialists, we
assessed the terms of the financing arrangements
and the classification and recognition in relation
to accounting principles and accounting
standards applied in the consolidated financial
statements.
- We have also reconciled the balance sheet values
of financial items to external confirmations at the
balance sheet date.
- In addition, we assessed the disclosures provided
on the financing arrangements and covenants.
We have not identified other key audit matters relating
to the parent company’s financial statements.
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 a 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
about 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
the 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
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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.
- Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the group as a basis for forming an opinion on the
group financial statements. We are responsible for
the direction, supervision and review of the audit
work performed for purposes 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 25.4.2025, and our appointment
represents a total period of uninterrupted engagement
of one year.
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
or 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 the report
of the Board of Directors, our responsibility also
includes considering whether the report of the Board
of Directors has been prepared in compliance with
the applicable provisions, excluding the sustainability
report information on which there are provisions
in Chapter 7 of the Accounting Act and in the
sustainability reporting standards.
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 compliance with the
applicable provisions. Our opinion does not cover the
sustainability report information on which there are
181Suominen Annual Report 2025
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provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
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 12 March 2026
KPMG OY AB
Audit Firm
Anders Lundin
Authorised Public Accountant, KHT
182Suominen Annual Report 2025
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Assurance report on the Sustainability Statement
To the Annual General Meeting of Suominen Corporation
We have performed a limited assurance engagement
on the group sustainability statement of Suominen
Corporation (business identity code 1680141-9) that is
referred to in Chapter 7 of the Accounting Act and that
is included in the report of the Board of Directors for
the financial year 1.1.–31.12.2025.
Opinion
Based on the procedures we have performed and
the evidence we have obtained, nothing has come
to our attention that causes us to believe that the
group sustainability statement does not comply, in all
material respects, with
1) the requirements laid down in Chapter 7 of the
Accounting Act and the sustainability reporting
standards (ESRS), and
2) the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment
of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088
(EU Taxonomy).
Point 1 above also contains the process in which
Suominen Corporation has identified the information
for reporting in accordance with the sustainability
reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the
group sustainability statement with digital XBRL
sustainability tags in accordance with Chapter 7,
Section 22, Subsection 1(2), of the Accounting Act,
because sustainability reporting companies have not
had the possibility to comply with that requirement
in the absence of requirements for the tagging of
sustainability information in the ESEF regulation or
other European Union legislation.
Basis for Opinion
We performed the assurance of the group
sustainability statement as a limited assurance
engagement in compliance with good assurance
practice in Finland and with the International Standard
on Assurance Engagements (ISAE) 3000 (Revised)
Assurance Engagements Other than Audits or Reviews
of Historical Financial Information.
Our responsibilities under this standard are further
described in the Responsibilities of the Authorized
Group Sustainability Auditor section of our report.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
Other Matter
Regarding the comparative information, the group
sustainability statement for the financial year
1.1.–31.12.2024 was assured at a limited assurance
level by a different authorised sustainability auditor,
whose assurance report dated 4.3.2025 expressed
an unmodified opinion on the group sustainability
statement. Our opinion is not modified in respect to
this matter.
Authorized Group Sustainability Auditor’s
Independence and Quality Management
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 engagement, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements.
The authorized group sustainability auditor applies
International Standard on Quality Management ISQM 1,
which requires the authorized sustainability audit
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.
This document is an English translation of the Finnish Assurance Report on the Sustainability Statement. Only the Finnish version of the report is legally binding.
183Suominen Annual Report 2025
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Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director of
Suominen Corporation are responsible for:
- the group sustainability statement and for its
preparation and presentation in accordance with
the provisions of Chapter 7 of the Accounting Act,
including the process that has been defined in the
sustainability reporting standards and in which the
information for reporting in accordance with the
sustainability reporting standards has been identified,
- the compliance of the group sustainability statement
with the requirements laid down in Article 8 of
the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment
of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088, and for
- such internal control as the Board of Directors and
the Managing Director determine is necessary to
enable the preparation of a group sustainability
statement that is free from material misstatement,
whether due to fraud or error.
Inherent Limitations in the Preparation of
a Sustainability statement
Preparing a group sustainability statement requires a
company to make materiality assessment to identify
relevant matters to report. This includes significant
management judgement and choices. It is also
characteristic to the sustainability reporting that
reporting of this kind of information includes estimates
and assumptions as well as measurement and
estimation uncertainty.
The determination of greenhouse gases is subject to
inherent uncertainty due to the incomplete scientific
data used to determine the emission factors and the
numerical values needed to combine emissions of
different gases.
When reporting forward-looking information
in accordance with ESRS standards, a company’s
management is required to make assumptions about
possible future events, and to disclose the company’s
possible future actions in relation to those events, as
well as to prepare the forward-looking information
based on these assumptions. Actual results are likely
to differ because forecasted events often do not occur
as expected.
Responsibilities of the Authorized Group
Sustainability Auditor
Our responsibility is to perform an assurance
engagement to obtain limited assurance about
whether the group sustainability statement is free from
material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes
our opinion. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the decisions of users taken on the basis of
the group sustainability statement.
Compliance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised) requires
that we exercise professional judgment and maintain
professional scepticism throughout the engagement.
We also:
- Identify and assess the risks of material misstatement
of the group sustainability statement, whether due
to fraud or error, and obtain an understanding of
internal control relevant to the engagement in order
to design assurance 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.
- Design and perform assurance procedures
responsive to those risks to obtain 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.
Description of the Procedures That Have
Been Performed
The procedures performed in a limited assurance
engagement vary in nature and timing from, and
are less in extent than for, a reasonable assurance
engagement. The nature, timing and extent of
assurance procedures selected depend on professional
judgment, including the assessment of risks of
material misstatement, whether due to fraud or error.
Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower
than the assurance that would have been obtained had
a reasonable assurance engagement been performed.
Our procedures included for ex. the following:
- We interviewed the company’s management and
persons responsible for collecting and preparing the
information contained in the group sustainability
statement at the group level and in subsidiaries.
- Regarding the double materiality assessment
process, we assessed the implementation of the
process carried out by the company and the
information disclosed on the double materiality
assessment process in relation to the requirements
of the ESRS standards.
- Through interviews we gained understanding of
the group’s key processes related to collecting and
consolidating the sustainability information.
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- We got acquainted with the group’s internal
guidelines and operating principles relevant to the
sustainability information disclosed in the group
sustainability statement.
- We got acquainted with the background
documentation and documents prepared by the
company, as applicable, and assessed whether
they support the information included in the group
sustainability statement.
- We conducted site visits to selected sites.
- We assessed the information disclosed on material
sustainability matters in the group sustainability
statement in relation to the requirements of the ESRS
standards.
- In relation to the EU taxonomy information, we
gained understanding about the process by which
the company has defined taxonomy eligible and
taxonomy aligned activities, and assessed the
regulatory compliance of the information provided.
Helsinki 12 March 2026
KPMG OY AB
Authorized Sustainability Audit Firm
Anders Lundin
Authorized Sustainability Auditor, KRT
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We have performed a reasonable assurance
engagement on the financial statements
743700Z1BNFYR9PRDF52-2025-12-31-1-fi.zip of
Suominen Corporation (Business ID 1680141-9)
that have been prepared in accordance with the
Commission’s regulatory technical standard for the
financial year ended 31.12.2025.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director
are responsible for the preparation of the company’s
report of the Board of Directors and financial
statements (the ESEF financial statements) in such a
way that they comply with the requirements of the
Commission’s regulatory technical standard. This
responsibility includes:
- preparing the ESEF financial statements in
XHTML format in accordance with Article 3 of the
Commission’s regulatory technical standard
- tagging the primary financial statements, notes and
company’s identification data in the consolidated
financial statements that are included in the ESEF
financial statements with iXBRL tags in accordance
with Article 4 of the Commission’s regulatory
technical standard and
- ensuring the consistency between the ESEF financial
statements and the audited financial statements.
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 ESEF financial statements in accordance with
the requirements of the Commission’s regulatory
technical standard.
Independent Auditor’s Report on the ESEF Consolidated
Financial Statements of Suominen Corporation
To the Board of Directors of Suominen Corporation
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 auditor 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
Our responsibility is to, in accordance with
Chapter 7, Section 8 of the Securities Markets Act,
provide assurance on the financial statements
that have been prepared in accordance with the
Commission’s regulatory technical standard. We
express an opinion on whether the consolidated
financial statements that are included in the ESEF
financial statements have been tagged, in all material
respects, in accordance with the requirements of
Article 4 of the Commission’s regulatory technical
standard.
Our responsibility is to indicate in our opinion to
what extent the assurance has been provided. We
conducted a reasonable assurance engagement in
accordance with International Standard on Assurance
Engagements (ISAE) 3000.
Translation of the Finnish original
186Suominen Annual Report 2025
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The engagement includes procedures to obtain
evidence on:
- whether the primary financial statements in the
consolidated financial statements that are included
in the ESEF financial statements have been
tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
- whether the notes and company’s identification data
in the consolidated financial statements that are
included in the ESEF financial statements have been
tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
- whether there is consistency between the ESEF
financial statements and the audited financial
statements.
The nature, timing and extent of the selected
procedures depend on the auditor’s judgment. This
includes an assessment of the risk of a material
deviation due to fraud or error from the requirements
of the Commission’s regulatory technical standard.
We believe that the evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the
Securities Markets Act is that the primary financial
statements, notes and company’s identification data
in the consolidated financial statements that are
included in the ESEF financial statements of Suominen
Corporation 743700Z1BNFYR9PRDF52-2025-12-
31-1-fi.zip for the financial year ended 31.12.2025 have
been tagged, in all material respects, in accordance
with the requirements of the Commission’s regulatory
technical standard.
Our opinion on the audit of the consolidated
financial statements of Suominen Corporation for the
financial year ended 31.12.2025 has been expressed in
our auditor’s report dated 12.3.2026. With this report
we do not express an opinion on the audit of the
consolidated financial statements nor express another
assurance conclusion.
Helsinki 19 March 2026
KPMG OY AB
Audit Firm
Anders Lundin
Authorised Public Accountant, KHT
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Key ratios
2025 2024 2023
Net sales, EUR million 412.4 462.3 450.9
Comparable operating profit / loss, EUR million -4.2 -1.4 -2.8
% of net sales -1.0 -0.3 -0.6
Operating profit / loss, EUR million -5.9 -1.3 -7.5
% of net sales -1.4 -0.3 -1.7
Comparable EBITDA, EUR million 12.6 17.0 15.8
% of net sales 3.1 3.7 3.5
EBITDA, EUR million 11.3 17.2 11.2
% of net sales 2.7 3.7 2.5
Profit / loss before income taxes, EUR million -13.4 -5.3 -13.5
% of net sales -3.2 -1.2 -3.0
Profit / loss for the period, EUR million -12.1 -5.3 -12.8
% of net sales -2.9 -1.1 -2.8
Cash flow from operations, EUR million 12.2 3.9 30.7
Total assets, EUR million 272.4 310.4 316.4
Return on equity (ROE), % -11.4 -4.4 -9.6
Return on invested capital (ROI), % -3.3 -0.7 -4.1
Equity ratio, % 35.3 37.9 39.5
Interest-bearing net debt, EUR million 77.6 60.8 44.1
Capital employed, EUR million 173.3 178.0 168.4
Gearing, % 80.7 51.7 35.3
Gross capital expenditure, EUR million 26.3 16.0 11.2
% of net sales 6.4 3.5 2.5
Depreciation, amortization and impairment losses, EUR million -17.2 -18.4 -18.7
Expenditure on research and development, EUR million 2.8 4.0 3.9
as % of net sales 0.7 0.9 0.9
Average number of personnel (FTE - full time equivalent) 695 689 682
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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 / loss, 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 / loss is presented as a separate line item in the consolidated statement of profit
or loss.
Operating profit / loss (EBIT) = Profit / loss before income taxes + net financial expenses
Comparable operating profit /
loss (comparable EBIT)
=
Profit / loss 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 / loss as an alternative performance measure. Operating profit / loss 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 2025, items
affecting comparability of result were impairment losses arising from the closure of one production line and
restructuring expenses. In 2024, the items affecting comparability consisted mainly of restructuring expenses
and expenses and impairment losses of inventory arising from the closure of the production lines in Italy.
EUR thousand 2025 2024
Operating profit / loss -5,904 -1,257
+ Dismissal costs affecting comparability 781 1,605
+ Restoration costs affecting comparability / reversals of
restoration provisions -85 -1,435
+ Other costs affecting comparability 650 4
+ Other operating income, affecting comparability -49 -305
+ Impairment losses of property, plant and equipment, affecting
comparability of result 426 −
+ Impairment losses of right-of-use assets, affecting
comparability of result − 3
+ Impairment losses of inventories and reversals of the
impairment losses, affecting comparability of result − -41
Comparable operating profit / loss -4,182 -1,426
Reference
Consolidated statement of profit or loss
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EUR thousand 2025 2024
Operating profit / loss -5,904 -1,257
+ Depreciation, amortization and impairment losses 17,201 18,431
EBITDA 11,298 17,174
EBITDA 11,298 17,174
+ Dismissal costs affecting comparability 781 1,605
+ Restoration costs affecting comparability / reversals of
restoration provisions -85 -1,435
+ Other costs affecting comparability 650 4
+ Other operating income, affecting comparability -49 -305
+ Impairment losses of inventories and reversals of
the impairment losses, affecting comparability of result − -41
Comparable EBITDA 12,594 17,001
Reference
Consolidated statement of profit or loss
Note 24
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 2025
and 2024, the items affecting comparability of EBITDA were the mainly restructuring expenses. In addition, in
2024 the items affecting comparability included 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 2025 2024
Increases in intangible assets 160 109
Increases in property, plant and equipment 26,130 15,895
Gross capital expenditure 26,289 16,004
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 2025 2024
Interest-bearing liabilities 109,256 101,760
Tender and issuance costs of the debentures 410 394
Cash and cash equivalents -32,064 -41,340
Interest-bearing net debt 77,602 60,815
Interest-bearing liabilities 109,256 101,760
Tender and issuance costs of the debentures 410 394
Nominal value of interest-bearing liabilities 109,666 102,154
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 / loss for the reporting period (rolling 12 months) x 100
Total equity attributable to owners of the parent (quarterly average)
EUR thousand 2025 2024
Profit / loss for the reporting period (rolling 12 months) -12,070 -5,290
Total equity attributable to owners of the parent
December 31, 2024 / 2023 117,608 124,912
Total equity attributable to owners of the parent
March 31, 2025 / 2024 112,466 126,045
Total equity attributable to owners of the parent
June 30, 2025 / 2024 101,577 118,081
Total equity attributable to owners of the parent
September 30, 2025 / 2024 100,153 110,781
Total equity attributable to owners of the parent
December 31, 2025 / 2024 96,102 117,608
Average 105,581 119,485
Return on equity (ROE), % -11.4 -4.4
Reference
Consolidated statement of profit or loss
Consolidated statement of financial position
191Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Invested capital
Invested capital =
Total equity + interest-bearing liabilities
- cash and cash equivalents
EUR thousand 2025 2024
Total equity attributable to owners of the parent 96,102 117,608
Interest-bearing liabilities 109,256 101,760
Cash and cash equivalents -32,064 -41,340
Invested capital 173,294 178,028
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 / loss (rolling 12 months) x 100
Invested capital, quarterly average
EUR thousand 2025 2024
Operating profit / loss (rolling 12 months) -5,904 -1,257
Invested capital December 31, 2024 / 2023 178,028 168,435
Invested capital March 31, 2025 / 2024 179,559 174,706
Invested capital June 30, 2025 / 2024 188,099 174,218
Invested capital September 30, 2025 / 2024 175,792 173,650
Invested capital December 31, 2025 / 2024 173,294 178,028
Average 178,954 173,807
Return on invested capital (ROI), % -3.3 -0.7
Reference
Consolidated statement of profit or loss
192Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
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 2025 2024
Total equity attributable to owners of the parent 96,102 117,608
Total assets 272,391 310,376
Advances received -212 -31
272,178 310,345
Equity ratio, % 35.3 37.9
EUR thousand 2025 2024
Interest-bearing net debt 77,602 60,815
Total equity attributable to owners of the parent 96,102 117,608
Gearing, % 80.7 51.7
Reference
Consolidated statement of financial position
Consolidated statement of financial position
Note 16
Reference
Consolidated statement of financial position
193Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Information for shareholders
Financial calendar
Suominen will publish its Financial Statements
Bulletin, Half Year Financial Report and two
Interim Reports in 2026 as follows:
January 29, 2026 Financial Statements
Release for 2025
May 7, 2026 Interim Report for
January–March 2026
August 7, 2026 Half-Year Financial Report
for January–June 2026
November 5, 2026 Interim Report for
January–September 2026
The Annual General Meeting
Notice is given to the shareholders of Suominen
Corporation to the Annual General Meeting to be
held on April 15, 2026, at 1:00 p.m. (EEST). The Annual
General Meeting will be held without a meeting venue
using remote connection in real time, in accordance
with Section 10 of the Articles of Association of the
Company and Chapter 5, Section 16 Subsection 3 of
the Finnish Limited Liability Companies Act. Notice to
the Annual General Meeting has been announced as a
stock exchange release on March 4, 2026. All materials
to the Annual General Meeting are available on the
company’s website www.suominen.fi/agm.
Shareholders who are registered in the shareholders’
register of Euroclear Finland Ltd. on the record date
of the General Meeting April 1, 2026 are entitled to
participate in the General Meeting. Any shareholder
whose company shares are recorded in their personal
Finnish book-entry account is automatically included
in the company’s shareholders’ register.
Registration for the General Meeting commenced on
March 5, 2026 at 10:00 a.m. (EET). A shareholder who
is registered in the company’s shareholders’ register
and wishes to participate in the General Meeting must
register for the meeting no later than April 7, 2026, by
4:00 p.m. (EEST), by which time the registration must
be received.
A shareholder can register for the General Meeting:
a) Via the company’s website www.suominen.fi/agm.
Electronic registration requires strong identification
of the shareholder or their legal representative or
proxy with a Finnish, Swedish, or Danish bank ID, or
a mobile certificate.
b) By e-mail or mail. A shareholder registering
for the General Meeting by e-mail or regular
mail shall submit a registration and advance
voting form which is available on the
company’s website www.suominen.fi/agm,
or equivalent information to the address
agm@innovatics.fi, or by regular mail to Innovatics Oy
to the address Innovatics Oy, General Meeting /
Suominen Corporation, Ratamestarinkatu 13 A,
00520 Helsinki, Finland.
The shareholder and their representative are required
to provide necessary information, such as the
shareholder’s name, date of birth or business ID,
phone number and/or e-mail, address, the name of
any assistant or proxy representative and the proxy
representative’s date of birth, phone number and/
or e-mail. The personal data provided to Suominen
Corporation is only used in connection with the
General Meeting and the processing of the necessary
registrations related thereto.
Further information on registration and advance
voting is available to all shareholders on the company’s
website www.suominen.fi/agm.
194Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
Proposal on distribution of funds
The Board of Directors proposes to the Annual
General Meeting that no dividend be paid based on
the adopted balance sheet regarding the financial year
of 2025 and that the distributable funds be left in the
company’s unrestricted equity.
Investor relations
Janne Silonsaari, CFO
Tel. +358 50 409 9264
janne.silonsaari@suominencorp.com
Request for management appointments:
Kati Junnila, Executive Assistant
Tel. +358 10 214 3268
kati.junnila@suominencorp.com
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.
Exceptions to this principle are the General Meetings
of Shareholders, which may be held during a silent
period, and the publication of a stock exchange release
required by regulations and the communications
relating thereto. In case of an event that requires
disclosure during a silent period, Suominen shall
publish the information without delay in accordance
with the duty of disclosure and applicable regulations
and shall determine on a case-by-case basis whether
interviews will be given on the matter while limiting
any such communication to the event in question.
The IR calendar available on the Company’s website
includes the dates of the silent periods.
195Suominen Annual Report 2025
This is Suominen Corporate Governance Report by the Board of Directors and Financial Information
SUOMINEN CORPORATION
Head Office
Keilaranta 13 A
FI-02150 Espoo
Tel. +358 10 214 300
communications@suominencorp.com
Detailed contact information
to Suominen locations worldwide
is available at www.suominen.fi
www.suominen.fi
LinkedIn: Suominen Corporation
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