Duni Ab · OMXSTO:DUNI
Duni Ab — Q2 2008 Earnings Presentation
18 slides from Duni Ab's earnings presentation, Nov 19, 2008
Slide 1: Q2 2008 Presentation
Q2 2008 Presentation www.duni.com 1
Slide 2: Disclaimer
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 prese
Slide 3: Contents
Contents 2008 Q2 highlights Business areas Financials 3
Slide 4: 2008 Q2 Highlights
2008 Q2 Highlights • Net sales increased with 4.2% to SEK 1012 m • Operating profit amounted to SEK 90 m (73) • Operating margin amounted to 8.9% (8.5%) • Solid growth in Professional and improved margins - Good development in Central Europe - Strong growth in Duni FoodSolutions • Continued improvem
Slide 5: Share Price Development
Share Price Development Share price per 30/06/08 Ownership structure per 30/06/08 Name # of Shares % Mellby Gård Investerings AB 14 094 500 29,99% Duni Holding AB, EQT Partners AB 7 858 644 16,72% PolarisCapital Fund Ltd 4 222 200 8,98% SEB Investment Management 3 100 987 6,60% Cominvest 2 431 200 5
Slide 6: Duni – the European Market Leader for Table Top Solutions
Duni – the European Market Leader for Table Top Solutions Duni Key financials Table Top Full year 2007 Tissue 14% ∙ Sales: SEK 4.0 billion (+5.9%) Professional Retail 66% 20% ∙ EBIT: SEK 394 million (277) ∙ EBIT margin: 9.9% (8.7%) ¹ Manufactured Napkins Plates Table coverings Q2 2008 ∙ Sales: SEK 1
Slide 7: 2008 Market Outlook
2008 Market Outlook HORECA market growing in line or slightly above GDP • Positive eating out trend • Continued strong growth in take-away sector Retail growth in line with GDP • Private label stagnating Higher uncertainty • GDP forecasts revised downward since Q1 Raw material prices and costs of ce
Slide 8: Business Areas
Business Areas 8
Slide 9: Professional – Stable Development
Professional – Stable Development Sales and EBIT 1 Geographical split – sales Q2 2008 MSEK 3,000 14% Net Sales - Professional Q22008 Q22007 Growth 12% 2,500 Nordic region 176 168 4,8% 10% Central Europe 402 378 6,3% 2,000 Southern & Eastern Europe 124 114 8,8% 8% Rest of the World 4 5 -20,0% 1,500 T
Slide 10: Retail – Turnaround
Retail – Turnaround Sales and EBIT 1 Geographical split – sales Q2 2008 MSEK 900 -+6% Net Sales - Retail Q22008 Q22007 Growth -+4% 850 Nordic region 40 36 11,1% +2% 800 Central Europe 122 126 -3,2% Southern & Eastern Europe 2 1 100,0% -0% Rest of the World 0 0 0,0% 750 -2% Total 164 163 0,6% 700 -4%
Slide 11: Tissue
Tissue Sales and EBIT 1 Sales mix Q2 2008 MSEK 650 14% 12% 600 Internal 10% 47% 550 External 53% 8% 500 6% 450 4% 400 2% Tissue in-house provides competitive advantage 350 0% 2005 2006 2007 LTM Healthy underlying growth in Sales EBIT margin hygiene sector 1) Excluding non-recurring costs 11
Slide 12: Financials
Financials 12
Slide 13: Momentum in Top-Line Growth
Momentum in Top-Line Growth LTM Sales Sales growth MSEK MSEK 2006 2007 Q2 2007 Q2 2008 4 100 1 150 4 050 1 100 Professional 5.7% 6.3% 5.6% 6.2% 1 050 4 000 Retail -6.2% 4.2% 1.2% 0.6% 1 000 3 950 950 Tissue 4.5% 6.9% 13.5% 0.0% 3 900 900 Total 2.9% 5.9% 5.9% 4.2% 3 850 850 Q3 Q4 Q1 Q2 Quarter Rollin
Slide 14: Margin Expansion
Margin Expansion Operating profit (MSEK) Operating margin MSEK 2006 2007 Q2 2007 Q2 2008 400 10% 9% 350 Professional 11.7% 12.9% 11.6% 12.7% 8% 300 -7% Retail -0.9% 0.6% -8.0% -5.0% 250 6% 200 5% Tissue 8.5% 8.9% 6.3% 6.2% 4% 150 3% Non- 100 recurring -1.3% 0.0% 0.0% 0.0% 2% items (effect) 50 1% Tot
Slide 15: Income Statement
Income Statement 2005 2006 2007 LTM Net sales 3,656 3,762 3,985 4,072 Cost of goods sold -2,829 -2,812 -2,948 -2,982 Gross profit 827 950 1,037 1,090 Gross margin 22.6% 25.3% 26.0% 26.8% Selling expenses -510 -459 -446 -462 Adminstrative expenses -185 -219 -208 -211 Research and development expenses
Slide 16: Balance Sheet
Balance Sheet (SEK in millions) 30/06/2008 30/06/2008 Intangible assets 1,228 Shareholders’ equity 1,414 Tangible assets 452 Interest bearing debt 1,094 Financial fixed assets 372 Pension liabilities 201 Inventory 556 Other long term liabilities 22 Accounts receivable 548 Accounts payable 304 Other
Slide 17: Simplified Cash Flow Profile
Simplified Cash Flow Profile (SEK million) 2006 2007 H1 2007 H2 2008 Operating profit 277 393 151 176 Depreciation 82 89 43 50 Change in operating working capital1) -32 20 -127 -58 Inventory 26 -24 -35 -55 Accounts receivable 8 14 -76 -2 Accounts payable -66 30 -16 -1 Other operating working capital
Slide 18: Financial Targets
Financial Targets LTM ∙ Organic growth of 5% over a business cycle 4.7% Sales growth > 5% ∙ Consider acquisitions to reach new markets or to - strengthen current market positions ∙ Top-line growth EBIT margin > 10% 10.3% ∙ Improvements in manufacturing and sourcing Dividend payout ratio ∙ Board targ