Duni Ab · OMXSTO:DUNI
Duni Ab — Q4 2009 Earnings Presentation
33 slides from Duni Ab's earnings presentation, Aug 31, 2010
Slide 1: Q4 2009 Presentation
www.duni.com Q4 2009 Presentation 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 Company overview Market overview Business areas ¬ Professional ¬ Retail ¬ Tissue Financials Summary 3
Slide 4: 2009 Q4 Highlights
2009 Q4 Highlights • Net sales increased with 1.0% to SEK 1,157 m • Underlying operating income¹ amounted to SEK 167 m (145) • Underlying operating margin¹ amounted to 14.4% (12.7%) • Strong cash flow and net debt reduction to SEK 631 m • Strong quarter with increased operating income in Professiona
Slide 5: Duni in Brief
Duni in Brief Professional Retail Tissue Bild Prof Bild Retail (MSEK) Group full year 2009 Sales 2 885 792 543 4 220 Sales share 68% 19% 13% 100% EBIT (underlying) 402 18 16 436 EBIT share 92% 4% 4% 100% EBIT Margin 13.9% 2.2% 3.0% 10.3% 5
Slide 6: European Market Leader in Table Top
European Market Leader in Table Top European Disposable Table Top Market Premium Positioning Eating and drinking supplements Focus areas for Duni 10% Linen1) Napkins 30% Food packaging 21% Duni Premium Tissue-based products Table covers Mank 6% Papstar Garcia SCA Candles GP Commodity 33% KC • Addres
Slide 7: Strong Market Position
Strong Market Position Market (by size in Premium Duni value) Share of Position Market 1) Southern Europe 1/3 3 2) Central Europe 2/3 1 3) The UK 1/3 2 4) Northern Europe 2/3 1 5) Benelux 2/3 1 6) Eastern Europe 1/3 3 7
Slide 8: Market Outlook - Slow Recovery
Market Outlook - Slow Recovery HORECA market long term 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 over-represented in our category • Discount stores and private label more in focus in
Slide 9: Traffic has been the Victim of the Credit Crunch
Traffic has been the Victim of the Credit Crunch 9
Slide 10: Full Service Restaurants Lost Faster than the Total Market
Full Service Restaurants Lost Faster than the Total Market while Quick Service Concepts were more Stable 10
Slide 11: Russians Spend Less than a Tenth of Western Europeans in Foodservice
Russians Spend Less than a Tenth of the Western Europeans into Foodservice 11
Slide 12: Increased Focus on Growth
Increased Focus on Growth 2004 2005 2006 2007 2008 2009 2010 2011 2012 Phase 1 Phase 2 Phase 3 Phase 1: "Restructuring“ • Establishing efficient operating platforms • Focus on cost and efficiency rather than growth Phase 2: "Consolidation & Growth“ • Consolidate lean operating model • Profitable gro
Slide 13: Exploring different Growth Paths
Exploring different Growth Paths Core geography New geography New Horeca Concept concepts expansion Market Platform Table top Penetration expansion 13
Slide 14: Business Areas
Business Areas 14
Slide 15: Professional – Solid Development
Professional – Solid Development Sales and EBIT 1 Geographical split – sales 2009 2) Other 3 000 16% South & East 1% Nordic 16% 22% 14% 2 500 12% 2 000 10% SEK millions 1 500 8% 6% Central 1 000 61% 4% 500 2% Stable sales growth over time 0 0% 2006 2007 2008 2009 Sales EBIT Margin Solid EBIT margin,
Slide 16: Key Success Factors
Key Success Factors #1 brand – premium focus Unique sales model Concept selling Product development 16
Slide 17: Duni's Unique Direct Approach to End-customers
Duni’s Unique Direct Approach to End-customers 50% 40% 10% ~250 sales men 70 customer service Wholesalers Cash & Carry Duni direct representatives Fragmented market 1) 45,000 hotels 150,000 restaurants 13,000 caterers 300,000 customer visits + fragmented end markets Premium pricing and strong margin
Slide 18: New Premium Products
New Premium Products Sensia ® ® 18
Slide 19: New Concepts
New Concepts Duni ecoecho® Duni Amuse-bouche® 19
Slide 20: Customized Solutions
Customized Solutions 20
Slide 21: Retail – Turnaround
Retail – Turnaround Sales and EBIT 1 Geographical split – sales 2009 2 900 6% & South East Nordic 800 4% 15% 4% 700 2% 600 SEK millions 500 0% 400 -2% 300 -4% Central 200 81% -6% 100 Improved profitability prioritized over sales 0 -8% 2006 2007 2008 2009 growth Sales EBIT Margin Duni brand & premium
Slide 22: Retail towards Sustainable Profitability
Retail towards Sustainable Profitability Duni opportunity Duni Focus Areas Brands are being re-introduced in retail Customer profitability: Play in the right field stores Assortment optimization and sales Non-food category is a key growth driver solutions for retailers Sales and merchandis
Slide 23: Duni – the Leading Brand
Duni – the Leading Brand Duni branded market share, Share Duni branded vs. napkins (value share, Nielsen, private label 2009) Private label Germany, 12.4 % 34% (54.0 % private label) Sweden 15.7 % Duni (50.9 % private label) 66% The Netherlands, 25.1 % (30.6 % private label) 23
Slide 24: In-store Solutions
In-store Solutions 24
Slide 25: Sales Concepts
Sales Concepts 25
Slide 26: Tissue – Volumes Stabilizing
Tissue – Volumes Stabilizing Sales and EBIT 1 Sales mix 2009 600 14% 12% 500 10% External 400 47% Internal SEK millions 8% 53% 300 6% 200 4% 100 2% Tissue in-house provides competitive advantage 0 0% 2006 2007 2008 2009 Sales EBIT Margin 2009 impacted by lower volumes. 26
Slide 27: Financials
Financials 27
Slide 28: Income Statement
Income Statement SEK millions 2006 2006 2007 2007 2008 2008 2009 2009 Q4 2008 Q4 2008 Q4 2009 Q4 2009 Net sales 3 762 3 985 4 099 4 220 1 145 1 157 Gross profit 950 1 037 1 079 1 166 297 357 Gross margin 25,3% 26,0% 26,3%2) 27,6% 25,9%3) 30,9% Selling expenses -459 -446 -465 -482 -119 -128 Administr
Slide 29: Improved Profitability in All Segments vs Q4 2008
Improved Profitability in All Segments vs Q4 2008 SEK millions 2006 2006 2007 2007 2008 2008 2009 2009 Q4 Q4 2008 2008 Q4 2009 Q4 2009 Professional Net sales 2 485 2 641 2 771 2 885 753 766 Operating income 291 342 368 402 122 137 Operating margin 11,7% 12,9% 13,3% 13,9% 16,2% 17,8% Retail Net sales
Slide 30: Continued Strong Cash Flow
Continued Strong Cash Flow Simplified Cash Flow Profile SEK millions 2006 20062)2) 20072) 2007 2) 2008 2008 2009 2009 Q4 2008 Q4 2008 Q4 2009 Q4 2009 EBITDA1) 409 485 511 539 168 193 Capital expenditures -130 -132 -139 -121 -57 -40 Change in; Inventory 26 -24 -3 146 106 70 Accounts Receivable 8 14 -
Slide 31: Solid Financial Position
Solid Financial Position SEK millions 2007 2007 2008 2008 2009 2009 Goodwill 1 199 1 199 1 199 Tangible & Intangible Fixed Assets 462 539 540 Net Financial Assets1) 339 366 327 Inventories 500 542 382 Accounts Receivable 546 731 640 Accounts Payable -305 -358 -344 Other operating assets and liabilit
Slide 32: Some Sensitivity to Major Input Materials
Some Sensitivity to Major Input Materials COGS breakdown (approximate) Sensitivity analysis 100% Energy, 4% Δ EBIT impact 90% Pulp, 11% 80% Freight & ∙ Energy 1% SEK 1 million warehouse cost, 70% 15% 60% Traded goods, 19% ∙ Pulp 1% SEK 4 million 50% 40% ∙ Freight 1% SEK 2 million Other material 30%
Slide 33: Financial Targets
Financial Targets 2009-12 ∙ Organic growth of 5% over a business cycle 3.0% Sales growth > 5% ∙ Consider acquisitions to reach new markets or to strengthen current market positions ∙ Top-line growth – premium focus EBIT margin > 10% 10.3% ∙ Improvements in manufacturing, sourcing and logistics Divid