Q4 Presentation 2012 14 February, 2013
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Q4 Presentation 201214 February, 2013
2
Disclaimer• This presentation has been prepared by Duni AB (the “Company”) solely for use at this investor presentation and is
furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.
• This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended.
• This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,”“may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.
• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
2012 Q4 Highlights• Professional – underlying demand stabilized
– Sales almost on par with last year in comparable currency rates.
– Maintained focus on inventory reduction with negative absorption effects as a consequence.
• Consumer – delays in implementation of new contracts– Some delay in two important new contracts –
expected to be in full force in Q1 2013. – Costs of implementing contracts relatively high in
the quarter.• Tissue – Initiated closing of one of three factories in
Dalsland– Unsatisfactory profitability in factory supplying
hygiene business.– Closure will not effect Duni's future EBIT, but
improve net debt. Restructuring cost taken of SEK 83 m in Q4.
• Other restructuring cost of SEK 24 m in the quarter– SEK 6 m related to previous announced program.– SEK 18 m related to change of CEO, write downs
and restructuring in the export markets.• Net debt at historically low level as a result of
improvements in Working Capital and lower CAPEX.
• Net sales SEK 1 031 m(1 063)
• Underlying operating income SEK 128 m (151)
• Underlying operating margin 12.4% (14.2%)
4
Market Outlook• HORECA market long-term growing in
line or slightly above GDP.– Positive eating out trend.– Higher growth in take-away sector.
• Macro statistics stabilizing, but growth not to be expected in short to mid term.
– Economic crisis creates uncertainty in consumer confidence, influencing Duni’s end customers.
– Duni’s major markets including Germany and Benelux with flat or minor decrease in volume.
• Pulp price flat, but expected to slowly increase. Plastics on all time high levels in EUR.
5
HoReCa Sales Development Germany (Nov 2012)
Source: destatis
6
+2,7% in volume in Dec and +2,6% in value.
Restaurant Sales Development Sweden (Dec 2011 – Dec 2012)
Business Areas
8
Professional–Lower sales and EBIT mainly impacted by currency
Sales and EBIT 1)
0
500
1 000
1 500
2 000
2 500
3 000
2008 2009 2010 2011 2012
SE
K m
illi
on
s
0%
5%
10%
15%
Sales EBIT Margin
1) Excluding non-recurring costs and market valuation of derivatives
• Stable development in major markets.
• Evolin launch continues with new colors.
Geographical split – sales Q4 2012
750
9
117
446
179
Q4 2011
0.5%3.7%722TOTAL
0.0%0.0%9Rest of the World
4.3%0.0%117South & East Europe
0.9%4.9%424Central Europe
3.4%3.4%173Nordic
Growth at fixedexchangerates
GrowthQ4 2012Net salesProfessional
9
Consumer– Improvement in sales trend
Sales and EBIT 1)
0
200
400
600
800
1 000
2008 2009 2010 2011 2012
SE
K m
illi
on
s
8%
6%
4%
2%
0%
2%
4%
6%
Sales EBIT Margin
Geographical split - sales Q4 2012
• Improvement from previous quarters, but delay in implementation of new accounts.
209
1
6
177
25
Q4 2011
2.8%5.7%197TOTAL
100.0%100.0%0Rest of the World
50.0%33.3%8South & East Europe
6.2%9.0%161Central Europe
12.0%12.0%28Nordic
Growth at fixedexchangerates
GrowthQ4 2012Net salesConsumer
1) Excluding non-recurring costs and market valuation of derivatives
10
Tissue– Low capacity utilization
Internal 53%
External 47%
Sales mix Q4 2012
• Decision to initiate closing of hygiene business.
• Restructuring cost of 83 MSEK.
• Insignificant effect on Duni’s future EBIT.
Sales and EBIT
0
100
200
300
400
500
600
2008 2009 2010 2011 2012
0%
2%
4%
6%
8%
10%
12%
14%
Sa les EBIT Ma r g in
11Financials
12
Operating Margin (underlying) 12.4% - Significant Restructuring cost
5.54
261
98
30
10.6 %
404
16
388
0
30
172
441
27.1%1 0313 807
FY 2011
0.35
16
32
5
12.4%
128
107
21
75
5
56
111
25.9%2671 031
Q42012
2.632.09Earnings per share
12498Net income
7936Taxes
259Financial net
9.3%14.2%Operating margin (underlying)
340151Operating income (underlying)
1137Nonrecurring items1)228144Operating income (reported)
779Other operating net
269R&D expenses
17745Administrative expenses
438109Selling expenses
25.8%29.7%Gross margin945315Gross profit3 6691 063Net sales
FY 2012
Q4 2011SEKm
1) Restructuring costs and market valuation of derivatives
13
Lower Capacity Utilization in Q4 and FY 2012
14.2%
151
1 063
5.4%
6
104
11.7%
24
209
16.1%
121
750
Q4 2011
12.4%
128
1 031
1.3%
1
111
9.4%
19
197
14.9%
108
722
Q4 2012
Duni
Tissue
Consumer
Professional
SEKm
Operating margin
Operating income1)
Net sales
Operating margin
Operating income1)
Net sales
Operating margin
Operating income1)
Net sales
Operating margin
Operating income1)
Net sales
10.6%9.3%
404340
3 8073 669
5.9%0.2%
251
428436
3.4%0.9%
215
612551
12.9%12.5%
357336
2 7662 682
FY 2011
FY 2012
1) Excluding non-recurring cost and market valuation of derivates
14
7
16
22
4
13
55
200
177
Q4 2011
221
91
16
26
9
90
26
156
Q4 2012
415
76
17
7
20
66
113
452
FY 2012
76
58
23
8
36
37
377
511
FY 2011
Operating cash flow
Change in working capital
Other operating working capital
Accounts payable
Accounts receivable
Change in;
Inventory
Capital expenditure
EBITDA1)
SEKm
1) Excluding non-recurring costs and market valuation of derivatives
Continued strong Cash Flow
15
Net Debt at all time low
1.2
27%
28%
14%
2 607
2 051
555
2 607
282
301
624
387
185
795
1 199
2012
582745Net debt
1 9912 082Equity
2 5732 827Equity and net debt
19%17%ROCE2)
40%29%ROCE2) w/o Goodwill
29%36%Net debt / Equity
1.11.5Net debt / EBITDA2)
2 5732 827Net assets
266300Other operating assets and liabilities3)
315302Accounts payable
634663Accounts receivable
437470Inventories
253210Net financial assets1)
632888Tangible and intangible fixed assets
1 1991 199Goodwill
20102011SEKm
1) Deferred tax assets and liabilities + Income tax receivables and payables
2) Excluding non-recurring costs and market valuation of derivatives
3) Including restructuring provision and derivatives
16
Financial Targets• Organic growth of 5% over a
business cycle
• Consider acquisitions to reach new markets or to strengthen current market positions
• Top line growth – premium focus
• Improvements in manufacturing, sourcing and logistics
• Target at least 40% of net profit
Sales growth > 5%
EBIT margin > 10%Underlying
Dividend payout ratio 40+%
-1.6%(at fixed
exchange rates)
9.3%
2012
3.50 SEK per share (proposal)
17
Thank you!
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