Ahlstrom takes another step on its growth transformation journey by launching a refined strategy and simplifying its divisions

AHLSTROM OYJ, PRESS RELEASE,APRIL29, 2024at 15:00EEST

Ahlstrom continues to strengthen its leadership position by defining strategic pillarsfor growthand simplifying its divisional structurefrom five to three.

Over the last two years, Ahlstrom has launched a new purpose and strategy, implemented a new operating model, and reorganized key parts of the business, including divestmentof the Décor businessand divestment of the Stenayplant in France. Strengthened capabilities in procurement, pricing, and operational excellence have boosted profitability and margin quality despite challenging market conditions. As Ahlstrom continues its transformation, the company is well positioned to capture growth by addressing global trends. Among the biggest challengesin the coming years are the transitiontoward clean air and water, personalized healthcare, sustainable packagingand protection,decarbonized buildings, and electrification. Sustainable materials will be needed to address each of these trends.

To capitalize on thesemarket opportunities, Ahlstrom has defined five strategic pillars: Growth Acceleration, Safe & Sustainable Innovation Leadership, Operational Strength, Cash Discipline, and Engaged Employees. Together, these strategic pillarswill enable each of Ahlstrom'sbusiness units to advance their ability to lead in existing markets or toenter new markets in response to one or more global trends. With a clear strategic focusand intentional resource allocation, Ahlstrom aims to generate above GDP organic growth,healthymargins, and strongcash conversion in the coming years, while being recognized on the market as the preferred sustainable specialty materials companyand continuing to operatein line with itspurpose to Purify and Protect with Every Fiber for a Sustainable World.

To support thestrategy, Ahlstrom is simplifying its divisions from five to three: Filtration and Life Sciences, Food and Consumer Packaging,and Protective Materials. This means that the formerFiltration and Healthcare divisions merge to form Filtration and Life Sciences division, Food and Consumer Packaging remainsthe same, and theformerBuilding Materials and Technical Materials divisions form the new Protective Materials division.The new divisional structure ensures that Ahlstrom's technology can be better deployedto address global trends with safe and sustainable specialty solutions. In addition, product management will be elevatedin the business units and across the divisions to further accelerate the transition towards a more specialty portfolio, and to support the journey to safe & sustainable innovation leadership.

The business units and plants remainthe heart of Ahlstrom's business and operations and their structure will not change.The streamlined structurewill drive simplicity,take out costand willallow the business units to furtherfocus on driving growth.

"We are taking further steps to become the sustainable specialty materials company with our refined strategy and simplified organization that is best equipped to support our customers and the world to address global trends. Our products touch the lives of people on a daily basis, from more sustainable and safe solutions for food and beverage packaging, to filtration materials for cleaner air and water, to materialsthat support better healthcare and life science diagnostics.Our sustainable specialty solutions add value for customers and consumers globally while contributing to a better world.With our strong focus on innovations that are safe and sustainableby design,I'mfilled with confidence in Ahlstrom's future," says Helen Mets, Presidentand CEO of Ahlstrom.

The ambitions of the new divisions are:

Filtration andLife Sciences: Ahlstrom's "purifying" powerhousewith mission critical air and liquid filtration applications and life science and medical solutions. The division aims to expandinindustrial filtration and bioprocessing, leveragingclean air and water andpersonalized healthcaretrends. Daniele Borlatto, previously EVP, Filtration division isappointed as EVP, Filtration & Life Sciences division.

Food andConsumerPackaging:Solutions for improved food safety, product preservation, and bacteria prevention, helping extend product life and protect human health.The division has the ambition to lead the transition from single-use plastic to more sustainable packaging, leveragingnew barrier solutionsand high-performance materials that aresafe and sustainable by design.The search for a new division head is ongoing.

Protective Materials:Highly engineered materials for every surface ofthe building, and specialty materials for electrotechnical and other industrial applications. The division has the ambition to offer sustainable solutions for the decarbonization of buildingsand industrial electrificationand grow in niche, high-performance industrial applications. Sophie Haan, previously EVP, Technical Materials division is appointed as EVP, Protective Materials division.

Mark Ushpol, EVP for Food & Consumer Packaging division, Emmanuelle Picard, EVP for Building Materials division, and Jacques Lafon, EVP for Healthcare divisionwill leave to pursue careers outside Ahlstrom.

"Daniele has long experienceand agreat track recordin leading Ahlstrom's Filtration business,and he is recognized as an industry thought leader in the filtration space. Sophie has successfully led the Technical Materials divisionand she has a background inleading businesses in theprocess and specialty industries.Daniele and Sophie will continue to accelerate sustainable growth and drivegreater customer-centricityto strengthen Ahlstrom's position as a global leader in sustainable fiber-based specialty materials. I would liketo thank Mark, Emmanuelle and Jacques for their drive and dedication to Ahlstrom's business, and I wish them allthebestof successin the future," says Helen Mets.

The changes in organization areeffective from May 1, 2024. Financial reporting according to the new divisional structure starts from July 1, 2024, and the financial results for Q3 2024 in line with this new structure will be published in early November.

For furtherinformation, please contact:

For media:

Katja Ollila, Vice President, Group Marketing and Communications, +358 44 517 0891, [email protected]

For investors:

Johan Lindh, Vice President, Investor Relations, +358 10 888 4994, [email protected]

Ahlstrom in brief 
Ahlstrom is a global leader in combining fibers into sustainable specialty materials. Our purpose is to Purify and Protect, with Every Fiber, for a Sustainable World. Our vision is to be the Preferred Sustainable Specialty Materials Company for all our stakeholders. Our three divisions, Filtration and Life Sciences, Food and Consumer Packaging, and Protective Materials, address global trends with safe and sustainable solutions. Our net sales in 2023 amounted to EUR 3.0 billion and we employ some 7,000 people. Read more www.ahlstrom.com

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