Suominen Oyj · OMXHEX:SUY1V
Suominen Oyj — Merger or Acquisition (August 2003)
16 slides from Suominen Oyj's merger presentation, Aug 22, 2003
Slide 1: Suominen Corporation Presentation August 22, 2003
SUOMINEN CORPORATION PRESENTATION AUGUST 22, 2003
Slide 2: Suominen to acquire the wet wipe manufacturer Codi
Suominen to acquire the wet wipe manufacturer Codi • A memorandum of understanding signed on August 21, 2003. • Codi is the third largest converter of wet wipes in Europe. • The debt free acquisition price is around 60 million euros. • The acquisition is to be consummated by the end of September, 20
Slide 3: Codi International BV
Codi International BV EUR million 2002 Net sales 85.2 Operating profit 6.7 Post-tax profit 4.1 • Codi had an average staff of 346 employees in 2002. • Brisk growth -> net sales is expected to exceed 100 million euros in 2003. • Half of the net sales derive from baby care and the remainder is divided
Slide 4: Synergies
Synergies • Codi’s operations will supplement those of Suominen. • The manufacture and converting of nonwovens will now be combined in the same group. • The product range will expand. • More comprehensive input in sales and product development. • Internal deliveries of nonwovens within the group. •
Slide 5: The economic impact of the acquisition
The economic impact of the acquisition EUR million 2002 pro forma Net sales 258 Balance sheet, total 201 • The pro forma number of employees for the year 2002 is 1450. • The group goodwill will be at the level of some 35 million euros. • The acquisition is not expected to affect Suominen’s earnings
Slide 6: Equity or subordinated financing
Equity or subordinated financing • Suominen’s Board of Directors has decided to examine the possibilities for arranging financing in the form of a 20 - 30 million euro issue, either of shares or a subordinated capital loan. • This part of the financing is adjusted to accommodate the 40 % equity rati
Slide 7: Group structure
Group structure • Suominen’s Group structure will be changed and the business areas will be • Suominen Codi • Suominen Nonwovens • Suominen Flexible Packaging • Other business operations (incl. Suominen Webbing Products)
Slide 8: Organisation
Organisation • The units will be managed by operative business area boards. • The management of Codi will continue and Mr. B. Lindner will continue as managing director.
Slide 9: Background
Background • History - Founded in 1978 - Acquired by OPG Group (1984/1989) - Management Buy-Out in 2001 • Codi is one of the largest independent wet wipe converters in continental Europe, focussing on A brands - Consumer-type wet wipes, ‘ready-to-sell’ - Three most important folding types • Competit
Slide 10: Net Sales M€
Net Sales M€ 86 74 75 63 43 44 32 1996 1997 1998 1999 2000 2001 2002
Slide 11: Codi's market consists of 4 segments (1)
Codi’s market consists of 4 segments (1) Baby • First wet wipe product • Mature market - Innovation power - New market development Personal Care • Growth market • Many new product introductions • Less suitable for private label
Slide 12: Codi's market consists of 4 segments (2)
Codi’s market consists of 4 segments (2) Household • Growth market • Price sensitive • Strong competition among brands Industrial • Upcoming market • Strong in USA
Slide 13: Codi is focused on the baby & personal care segments
Codi is focused on the baby & personal care segments Growth market segment (2001-2005) 15% 13% 10% 8% 5% 3% 0% Baby Personal Care Household • Because of the ‘application sensitivity’ for baby and personal care products, these segments fit Codi’s competitive advantages best • Capacity and capital con
Slide 14: Suominen
Suominen • The Company is a supplier for the consumer goods industry, net sales 175 million euros in 2002. • Customers are leading international producers and marketers of hygiene and health care products and food. • Suominen Nonwovens is market leader in selected market segments in Europe. • Flexib
Slide 15: Net Sales by Business Area 2002
Net Sales by Business Area 2002 Flexible Webbing Packaging Products EUR 72.1 million EUR 13.2 million 41.3 % 7.5 % Nonwovens EUR 89.4 million 51.2 % Total EUR 174.8 million
Slide 16: Locations
Locations Head Office Tampere, Finland Nonwovens Flexible Packaging Webbing Products Nakkila, Finland Tampere, Finland Turku, Finland Ikaalinen, Finland Killinkoski, Finland Product and Process Nastola, Finland Tallinn, Estonia Development Kauhava, Finland Nakkila, Finland Norrköping, Sweden Grodzis