Slide 1: Q3 Presentation 2015
21 October, 2015 Q3 Presentation 2015 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: 2015 Q3 Highlights
2015 Q3 Highlights • Historical strong quarter in terms of • Net sales SEK 1 043 m operating income. (997) • Regained momentum in organic sales, but • Operating income SEK 146 m still short of financial target of 5%. (129) • Germany still behind last year, but • Operating margin 14.0% significant gr
Slide 4: Operating income (LTM) on highest level since IPO
Operating income (LTM) on highest level since IPO 550 500 450 400 350 300 Includes discontinued operations 4
Slide 5: Market Outlook
~ Market Outlook
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. − Minor growth of 1% (real) for restaurant sector in Germany, but slightly higher for hotel sector. Improved situation in South Europe derived from increa
Slide 7: Business Areas
Business Areas Eng US
Slide 8: Table Top
Table Top Improved growth rate, but still a slow development in Central Region
Slide 9: Table Top
Q3, 2015 Table Top • Growth in majority of the markets. S A L E S & O P E R AT I N G M A R G I N 1) • Especially significant in West and South Europe due to NET SALES, SEK m strong tourism season. 2 300 2 258 • Germany still behind last year, 2 179 2 200 but with some improvement 2 100 2 040 vs. out
Slide 10: Meal Service
Meal Service Growth clearly above Duni average; leveraging on a fast growing market segment 10
Slide 11: Meal Service
Q3, 2015 Meal Service • Demand for take-away solutions continues to be S A L E S & O P E R AT I N G M A R G I N 1) strong and growth close to NET SALES, SEK m 10% for the quarter. 650 598 • In contrast to Business 600 555 Area Table Top, Germany is 550 500 509 the main market for 450 growth; close t
Slide 12: Consumer
Consumer Stable result, but slightly lower sales in Germany
Slide 13: Consumer
Q3, 2015 Consumer • No structural effect from acquisitions in the S A L E S & O P E R AT I N G M A R G I N 1) quarter. NET SALES, SEK m • Growth in Nordic 1 500 1 055 flattening out and sharp 1 000 603 889 competitive environment 500 in Germany. 0 • High efficiency in 2013 2014 LTM 2015 production e
Slide 14: New Markets
New Markets Growth in almost all regions, except Russia 14
Slide 15: New Markets
New Markets • Russian ruble once again deteriorated in S A L E S & O P E R AT I N G the third quarter resulting in pressure on M A R G I N 1) gross margins. 250 • Cost reduction activities as well as price 200 2013 150 increases have mitigated the negative 2014 100 195 209 effects in Russia. 150 LTM
Slide 16: Materials & Services
Materials & Services • Hygiene is no longer included in Materials & Services, but reported as discontinued operations below net profit. • Remaining businesses are mainly external sales of tissue and airlaid plus some external services. 16
Slide 17: Financials
Financials Eng US
Slide 18: Historically strong Q3
Historically strong Q3 SEK m Q3 2015 Q3 2014 YTD 2015 YTD 2014 LTM FY 2014 Continuing operations 2014/2015 Net sales 1 043 997 3 030 2 736 4 164 3 870 Gross profit 311 295 883 781 1 235 1 134 Gross margin 29.9% 29.6% 29.1% 28.6% 29.7% 29.3% Selling expenses -112 -108 -353 -334 -475 -456 Administrati
Slide 19: Improvements in most Segments
Improvements in most Segments SEK m Q3 2015 Q3 2014 YTD 2015 YTD 2014 LTM FY 2014 2014/2015 Table Top Net Sales 578 545 1 654 1 575 2 258 2 179 Operating income 1) 109 97 274 247 399 373 Operating margin 18.9% 17.8% 16.6% 15.7% 17.7% 17.1% Meal Service Net Sales 155 140 454 411 598 555 Operating inc
Slide 20: High capex level
High capex level SEK m Q3 2015 Q3 2014 YTD 2015 YTD 2014 LTM FY 2014 Continuing operations 2014/2015 EBITDA from continuing 177 160 452 375 648 572 operations 1) Capital expenditure -53 -20 -105 -52 -140 -87 Change in; Inventory -35 -52 -83 -84 -16 -17 Accounts receivable -39 1 -24 -32 -4 -12 Accoun
Slide 21: Strong financial position
Strong financial position SEK m September 2015 December 2014 September 2014 Goodwill 1 461 1 463 1 488 Tangible and intangible fixed 1 144 1 162 1 088 assets Net financial assets 1) -42 -1 53 Inventories 571 503 559 Accounts receivable 727 743 758 Accounts payable -311 -341 -342 Other operating asse
Slide 22: 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 1.5% current market positions at fixed exchange rates, excluding hygiene business1) Operating margin LTM Top line growth – premium focus > 10% Improvements in 12.5% manufactur
Slide 23: Thank you!
Thank you!