Slide 1: Q3 Presentation 2018
Q3 Presentation 2018 18 October, 2018 Eng US
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: 2018 Q3 Highlights: Program to mitigate cost increase initiated
2018 Q3 Highlights: Program to mitigate cost increase initiated • Operating income continues to be significantly influenced by • Net sales SEK 1 190 m (1 082) accelerating pulp prices, up another 8% since Q2 and over 40% in the past 12 months • Operating income SEK 107 m (123) • In addition to pulp,
Slide 4: Market Outlook
Market Outlook • HoReCa market long-term growing in-line with or slightly above GDP. • In general stable development in the HoReCa sector, however slow start in Germany. • FX rates continue to develop in a more favorable direction for Duni with in general weaker SEK. • Pulp reaching all time high pr
Slide 5: Business Areas
Business Areas Eng US
Slide 6: Table Top
Table Top Significantly affected by pulp cost
Slide 7: Table Top Q3, 2018
Table Top Q3, 2018 S A L E S & O P E R AT I N G M A R G I N 1) • Pulp cost has continued to increase more than anticipated and so far NET SALES, SEK m implemented price activities have 2 500 2 444 not been sufficient to protect gross 2 293 2 338 margin. 2 300 • Sales was in line with last year in 2
Slide 8: Meal Service
Meal Service Investments in sustainable products pay off
Slide 9: Meal Service Q3, 2018
Meal Service Q3, 2018 S A L E S & O P E R AT I N G M A R G I N 1) • Acquired Biopac UK and Duni’s NET SALES, SEK m ecoecho® assortment behind the good growth. 1 000 806 666 704 • Launches made during last fall and 500 spring shows good market 0 acceptance and supports the 2016 2017 LTM 2018 growth.
Slide 10: Consumer
Consumer Loss of customer contracts and raw material increases bring down the result
Slide 11: Consumer Q3, 2018
Consumer Q3, 2018 S A L E S & O P E R AT I N G M A R G I N 1) • Underlying good growth in many NET SALES, SEK m markets is offset by decreases in UK and a loss of a significant 1 100 1 050 1 039 1 051 customer. 1 010 1 000 • Growth is positive within Duni’s 950 own brand while sales connected 2016 2
Slide 12: New Markets
New Markets Restructuring gives poor Q3 result
Slide 13: New Markets Sales & Operating Margin
New Markets S A L E S & O P E R AT I N G M A R G I N 1) • Costs related to implementation of new ERP system and NET SALES, SEK m 400 warehousing at Duni Song Seng in Singapore impacts 350 300 334 result negatively short term. 250 200 322 220 • Market investment to strengthen the organization still 1
Slide 14: New strategy to transform Duni into an even more sustainable and customer oriented business
New strategy to transform Duni into an even more sustainable and customer oriented business Objectives: • Improve Duni financial performance • Capture changing customer needs The most attractive end-customer experience The best partner Digitalized for sustainable and effective Customized solutions s
Slide 15: Acquisition of BioPak Pty Ltd
Acquisition of BioPak Pty Ltd Growth oriented acquisition strengthening our position in sustainable packaging and in APAC region • Annual turnover of approx. SEK 385 m and exhibit strong growth historically above 20% • Market leader in sustainable food packaging in Australia and New Zealand • Acquir
Slide 16: Program for profit improvement
Program for profit improvement • Purpose to increase profit and release funds to be invested behind new strategy • Three major activities: 1. Second wave of price increases announced this summer. Start to take effect in Q1 2019 2. Optimization of logistics. The implementation of the changes has alre
Slide 17: Financials
Financials
Slide 18: Operating income affected by raw material costs
Operating income affected by raw material costs SEK m Q3 Q3 YTD YTD LTM FY 2018 2017 2018 2017 2017/2018 2017 Net sales 1 190 1 082 3 467 3 188 4 721 4 441 Gross profit 308 304 916 891 1 289 1 264 Gross margin 25.9% 28.1% 26.4% 28.0% 27.3% 28.5% Selling expenses -131 -118 -408 -375 -538 -505 Adminis
Slide 19: Strong development in Meal Service
Strong development in Meal Service SEK m Q3 Q3 YTD YTD LTM FY 2018 2017 2018 2017 2017/2018 2017 Table Top Net Sales 625 581 1 804 1 697 2 444 2 338 Operating income 1) 84 96 233 254 354 375 Operating margin 13.5% 16.5% 12,9% 14.9% 14.5% 16.0% Meal Service Net Sales 218 170 627 525 806 704 Operating
Slide 20: Cash Flow
Cash Flow SEK m Q3 Q3 YTD YTD LTM FY 2018 2017 2018 2017 2017/2018 2017 Operating EBITDA1) 146 158 408 426 612 630 Capital expenditure -56 -41 -142 -165 -208 -234 Change in; Inventory -74 -39 -111 -94 -74 -57 Accounts receivable -4 -15 8 -41 1 -49 Accounts payable 34 3 -61 -25 21 56 Other operating
Slide 21: Financial position
Financial position SEK m September 2018 December 2017 September 2017 Goodwill 1 656 1 617 1 605 Tangible and intangible fixed assets 1 426 1 374 1 316 Net financial assets 1) -91 -107 -82 Inventories 768 627 652 Accounts receivable 829 798 772 Accounts payable -382 -428 -346 Other operating assets a
Slide 22: Financial targets: sales growth, operating margin, dividend payout ratio
Sales growth LTM Organic growth of 5% over a business cycle > 5% Consider acquisitions to reach new markets or 1.2% to strengthen current market positions at fixed exchange rates Operating margin LTM Top line growth – premium focus > 10% Improvements in manufacturing, sourcing and 9.8% logistics Div
Slide 23: Thank you!
if 11 igygiayi th ( Thank you!