Duni Ab · OMXSTO:DUNI

Duni Ab — Q3 2014 Earnings Presentation

24 slides from Duni Ab's earnings presentation, Oct 22, 2014

  1. Slide 1: Q3 Presentation 2014

    Q3 Presentation 2014 22 October, 2014 Eng US

  2. 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

  3. Slide 3: 2014 Q3 Highlights

    2014 Q3 Highlights • Historically strong third quarter with • Net sales SEK 1 100 m improvements in most Business Areas. (936) • Decision taken to concentrate production • Operating income SEK in Skåpafors. 132 m (88) • Paper+Design Group mainly explains the • Operating margin 12.0% positive develop

  4. Slide 4: Operating income (LTM) on highest level since IPO

    Operating income (LTM) on highest level since IPO MSEK 475 450 425 400 375 350 325 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 4

  5. Slide 5: Market Outlook

    Market Outlook

  6. Slide 6: Market Outlook

    Market Outlook • HoReCa market long‐term growing in line or slightly above GDP. − Higher growth in take‐away, catering and fast food restaurants. − Weaker consumer confidence with negative influence on spending. − Nordic markets still positive. • Macro climate deteriorated during the third quarter.

  7. Slide 7: HoReCa Sales Development

    HoReCa Sales Development • Northern Europe: − Sweden continues to show strong growth numbers for restaurants; still benefitting from VAT reduction in restaurant sector which mainly generated growth in café and bakery sector. • Central Europe: − Germany indicates stability and even modest growth for

  8. Slide 8: Business Areas

    Business Areas Eng US

  9. Slide 9: Table Top

    Table Top Growth and improved operating income

  10. Slide 10: Table Top

    Table Top S A L E S & O P E R AT I N G M A R G I N 1) Q3, 2014 • Broad and stable growth NET SALES, SEK m for the quarter. The 2 200 2 151 weakening Swedish Krona 2 150 2 096 contributes to sales & 2 100 profit. 2 040 2 050 2 000 • Delivery performance have 1 950 improved during the 2012 2013 LTM qu

  11. Slide 11: Meal Service

    Meal Service Regained growth in Nordics 11

  12. Slide 12: Meal Service

    Meal Service S A L E S & O P E R AT I N G M A R G I N 1) Q3, 2014 NET SALES, SEK m • Nordic, in particular 560 543 Sweden, regained 540 momentum in sales. 520 509 Bearing in mind the 493 500 dominant position, this is a 480 460 satisfactory step forward. • Germany, one of the most 2012 2013 LTM impo

  13. Slide 13: Consumer

    Consumer Clear contribution from the acquisition of Paper+Design Group

  14. Slide 14: Consumer

    Consumer S A L E S & O P E R AT I N G M A R G I N 1) Q3, 2014 • Paper+Design Group NET SALES, SEK m 1 000 explains the main part of 787 550 603 the improvement 500 towards last year. 0 • Positive development in 2012 2013 LTM several markets, including Nordics. OPERATING MARGIN However, quarter 20% 1

  15. Slide 15: New Markets

    New Markets Russia stabilized, but international crisis loads the uncertainty. 15

  16. Slide 16: New Markets

    New Markets • No structural effects in comparison to third S A L E S & O P E R AT I N G M A R G I N 1) quarter last year. • Russia sales stabilized, although operating 250 200 margin still burdened by weak Russian 2012 150 Ruble. 2013 100 197 • Other distributor markets with double 50 89 150 LTM dig

  17. Slide 17: Materials & Services

    Materials & Services Decision to concentrate production to Skåpafors. 17

  18. Slide 18: Financials

    Financials Eng US

  19. Slide 19: Q3 Operating Margin 12.0% in Quarter

    Q3 Operating Margin 12.0% in Quarter SEK m Q3 2014 Q3 2013 YTD Sep YTD Sep LTM FY 2013 2014 2013 2013/2014 Net sales 1 100 936 3 037 2 701 4 139 3 803 Gross profit 298 239 800 697 1 108 1 005 Gross margin 27.1% 25.5% 26.3% 25.8% 26.8% 26.4% Selling expenses ‐108 ‐103 ‐334 ‐320 ‐451 ‐437 Administrati

  20. Slide 20: Strong quarter in Table Top, Meal Service & Consumer

    Strong quarter in Table Top, Meal Service & Consumer SEK m Q3 2014 Q3 2013 YTD Sep YTD Sep LTM FY 2013 2014 2013 2013/2014 Table Top Net Sales 545 497 1 575 1 464 2 151 2 040 Operating income 1) 97 78 247 224 363 339 Operating margin 17.8% 15.7% 15.7% 15.3% 16.9% 16.6% Meal Service Net Sales 140 126

  21. Slide 21: Improvement in operating cash flow

    Improvement in operating cash flow SEK m Q3 2014 Q3 2013 YTD Sep YTD Sep LTM FY 2013 2014 2013 2013/2014 EBITDA 1) 164 118 394 322 575 503 Capital expenditure ‐20 ‐14 ‐52 ‐43 ‐91 ‐82 Change in; Inventory ‐25 ‐36 ‐57 ‐96 4 ‐35 Accounts receivable ‐11 43 ‐44 2 ‐50 ‐4 Accounts payable 84 16 46 ‐23 99 3

  22. Slide 22: Acquisition impacting balance sheet

    Acquisition impacting balance sheet SEK m September 2014 December 2013 September 2013 Goodwill 1 488 1 249 1 245 Tangible and intangible fixed assets 1 088 802 775 Net financial assets 1) 53 166 192 Inventories 559 434 488 Accounts receivable 758 658 632 Accounts payable ‐342 ‐348 ‐285 Other operati

  23. Slide 23: Sales growth, Operating margin, Dividend payout ratio

    Sales growth Organic growth of 5% over a LTM business cycle > 5% Consider acquisitions to reach new markets or to strengthen 4.8% current market positions at fixed exchange rates, excluding hygiene business1) Operating margin LTM Top line growth – premium focus > 10% Improvements in 11.1% manufactur

  24. Slide 24: Thank you!

    Thank you!

Duni — Q3 2014 Earnings Presentation on 6ix