Slide 1: Q1 Presentation, 2020
Q1 Presentation, 2020 April 24, 2020
Slide 2: Disclaimer
2020-04-23 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
Slide 3: 2020 Q1 Highlights
2020-04-23 NET SALES 2020 Q1 Highlights SEK 1 249 m (1 264) Net sales -1.2% and Organic proforma growth* at -4.0% OPERATING INCOME • Strong sales in January and February but sales drop in SEK 80 m March due to Covid-19. (93) • Significant sales drop from Duni-segment expected in Q2 Operating income
Slide 4: New sales and marketing organization
2020-04-23 New sales and marketing organization • Focus on Duni and BioPak brands. • New reporting structure. • Stronger innovation, marketing and sales capabilities. • Fast implementation of Covid-19 mitigation activities. • SEK 20 m yearly savings. *currency-adjusted growth including acquired comp
Slide 5: Segment Duni
2020-04-23 Segment Duni The Duni segment stands for what the Group is traditionally associated with – innovative and sustainable solutions for the set table, primarily napkins, table covers and candles. 5
Slide 6: Duni Q1, 2020
2020-04-23 Duni Q1, 2020 Net Sales per region SEK m Q1 Q1 LTM FY • Net sales SEK 811 m (889), operating income 2020 2019 19/20 2019 SEK 56 m (76). NorthEast 128 136 641 648 • Stable sales in the first months of the quarter. Central 391 415 1 659 1 683 • March volumes dropped significantly as West 13
Slide 7: Segment BioPak
2020-04-23 Segment BioPak The BioPak segment offers environmentally- sound concepts for meal packaging and serving products for applications including take-away, ready-to-eat meals, and various types of catering. 7
Slide 8: BioPak Q1, 2020
2020-04-23 BioPak Q1, 2020 Net Sales per region SEK m Q1 Q1 LTM FY • Net sales SEK 439 m (375), operating income 2020 2019 19/20 2019 SEK 24 m (17). NorthEast 104 94 433 423 • Good growth in most markets and strong Central 56 51 222 217 growth in Rest of World. West 32 28 131 126 • Covid-19 restrict
Slide 9: Covid-19 Situation: Sales and outlook
2020-04-23 Covid-19 Situation Sales and outlook • Healthy and fully operational business. • Covid-19 lockdown impacting restaurants and hotels. • Take-away opportunity. • If lockdowns remains in Q2 we expect sales to be reduced with more than 50% in the quarter. • Expected recovery during Q3-Q4 but
Slide 10: Covid-19 Situation: Our actions
2020-04-23 Covid-19 Situation Our actions • Adopting capacity. • Total cost cutting program of SEK 150 m in Q2 with no restructuring cost. Impact as from April. • Proposal to withdraw already proposed dividend of SEK 5.00 per share. • No need for additional liquidity. 10
Slide 11: Covid-19 Situation: Market outlook post lockdown
2020-04-23 Covid-19 Situation Market outlook post lockdown • Strong need for social interactions could lead to a quick recovery. • Future opportunities in hygiene and take-away. • Well positioned for a strong post Covid- 19 development. 11
Slide 12: A platform for growth
A platform for growth In late 2018, Duni Group launched a new strategy to transform the company to an even more sustainable and customer oriented business. 12
Slide 13: Our Blue Mission – Sustainability
Our Blue Mission – Sustainability The Duni Group has set five primary goals for its sustainability efforts to achieve by 2030. Environmentally-sound Circular solutions Partnerships for Carbon-neutral 100 percent products for every sustainability by 2030 engaged employees Goodfoodmood® occasion
Slide 14: Two main brands clarifies the offer
2020-04-23 Two main brands clarifies the offer The Duni brand stands for what the Group BioPak are the Australian idealists that are part traditionally is recognized for: innovative table of Duni Group since 2018. The brand is now top solutions. It is for example napkins, table established in Europe
Slide 15: Financials
2020-04-23 DUNI GROUP GED BioPak 5
Slide 16: Income Statement
2020-04-23 Income Statement SEK m Q1 Q1 LTM FY 2020 2019 19/20 2019 Net sales 1 249 1 264 5 533 5 547 Gross profit 291 301 1 393 1 403 Gross margin 23.3% 23.8% 25.2% 25.3% Selling expenses -163 -152 -603 -592 Administrative expenses -72 -61 -296 -285 R & D expenses -2 -2 -4 -3 Other operating net -1
Slide 17: Segment Financials
2020-04-23 Segment Financials SEK m Q1 Q1 LTM FY 2020 2019 19/20 2019 Duni Net Sales 811 889 3 737 3 815 Operating income 1) 56 76 397 416 Operating margin 6.9% 8.5% 10.6% 10.9% BioPak Net Sales 439 375 1 796 1 733 Operating income 1) 24 17 123 116 Operating margin 5.5% 4.5% 6.9% 6.7% Duni Group Net
Slide 18: Cash Flow
2020-04-23 Cash Flow SEK m Q1 Q1 LTM FY 2020 2019 19/20 2019 Operating EBITDA 1) 119 132 679 691 Capital expenditure 1) -26 -26 -137 -137 Change in; Inventory -62 -80 27 9 Accounts receivable 105 80 63 38 Accounts payable -94 -65 33 62 Other operating working capital -82 -88 -19 -26 Change in workin
Slide 19: Financial position
2020-04-23 Financial position SEK m March 2020 December 2019 March 2019 Goodwill 2 047 2 053 2 148 Tangible and intangible fixed assets 1 823 1 820 1 885 Net financial assets 1) -51 -37 -130 Inventories 864 781 863 Accounts receivable 836 915 861 Accounts payable -416 -505 -367 Other operating asset
Slide 20: Financial targets and dividend proposal
2020-04-23 Sales growth Operating margin Dividend payout ratio > 5% > 10% 40+% ORGANIC GROWTH OF 5% TOP LINE GROWTH TARGET AT LEAST 40% OVER A BUSINESS CYCLE – PREMIUM FOCUS OF NET PROFIT Consider acquisitions to reach new Improvements in manufacturing, Proposal to AGM 2020 SEK 0.00 per markets or t