Duni Ab · OMXSTO:DUNI
Duni Ab — Q3 2008 Earnings Presentation
19 slides from Duni Ab's earnings presentation, November 2008
Slide 1: Q3 2008 Presentation
Q3 2008 www.duni.com 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 2008 Q3 highlights Business areas Financials 3
Slide 4: 2008 Q3 Highlights
2008 Q3 Highlights • Net sales increased with 0.7% to SEK 973 m • Operating profit amounted to SEK 83 m (97) • Includes market valuation of derivatives SEK -18 m (3) • Operating margin amounted to 8.5% (10.0%) • Excluding market valuation of derivatives 10.5% (9.8%) • Continued growth in Professiona
Slide 5: Share Price Development
Share Price Development Share price Ownership structure per 30/09/08 Name Shares % Mellby Gård Investerings AB 14 094 500 29,99% PolarisCapital Fund Ltd, USA 4 276 800 9,10% Lannebo Fonder 3 619 300 7,70% SEB Investment Management, SE 3 590 287 7,64% Cominvest, DE 2 403 300 5,11% Livförsäkringsaktie
Slide 6: Duni – the European Market Leader for Table Top Solutions
Duni – the European Market Leader for Table Top Solutions Duni Key financials Table Top Full year 2007 Tissue 14% ∙ Sales: SEK 4.0 billion (+5.9%) Professional Retail 68% 18% ∙ EBIT: SEK 394 million (277) ∙ EBIT margin: 9.9% (8.7%) ¹ Manufactured Napkins Plates Table coverings Jan – Sep 2008 ∙ Sales
Slide 7: Market Outlook
Market Outlook HORECA market 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 a weaker economy Higher un
Slide 8: Eating Out Trend
Eating Out Trend Food spending outside home (as a percentage of whole food budget) 50 50 40 30 35 % 20 5 5 10 0 Poland Czech Germany USA 8 Source: BROG Media Biznes
Slide 9: Business Areas
Business Areas 9
Slide 10: Professional – Stable Development
Professional – Stable Development Sales and EBIT 1 Geographical split – sales Q3 2008 MSEK 3,000 14% Net Sales - Professional Q32008 Q32007 Growth 12% 2,500 Nordic region 158,9 157,6 0,8% 10% Central Europe 402,8 386,2 4,3% 2,000 Southern & Eastern Europe 118,8 111,0 7,0% 8% Rest of the World 3,8 4,
Slide 11: Retail – Turnaround
Retail – Turnaround Sales and EBIT 1 Geographical split – sales Q3 2008 MSEK 900 -+6% Net Sales - Retail Q32008 Q32007 Growth -+4% 850 Nordic region 30,3 43,9 -30,9% +2% Central Europe 124,4 125,2 -0,6% 800 Southern & Eastern Europe 3,5 4,2 -16,0% -0% Rest of the World 0,0 0,0 0,0% 750 Total 158,3 1
Slide 12: Tissue
Tissue Sales and EBIT 1 Sales mix Q3 2008 MSEK 650 14% 12% 600 Internal 10% 48% 550 External 52% 8% 500 6% 450 4% 400 2% Tissue in-house provides competitive 350 0% advantage 2005 2006 2007 LTM Healthy underlying growth in hygiene Sales EBIT margin sector 1) Excluding non-recurring costs and market
Slide 13: Financials
Financials 13
Slide 14: Top-Line Growth in Professional
Top-Line Growth in Professional LTM Sales Sales growth MSEK MSEK 2006 2007 Q3 2007 Q3 2008 4 100 1 150 4 050 1 100 Professional 5.7% 6.3% 11.3% 3.8% 1 050 4 000 Retail -6.2% 4.2% 7.5% -8.7% 1 000 3 950 950 Tissue 4.5% 6.9% 0.8% -2.2% 3 900 900 Total 2.9% 5.9% 9.0% 0.7% 3 850 850 Q4 Q1 Q2 Q3 Quarter
Slide 15: Underlying Margin Expansion
Underlying Margin Expansion Operating profit (MSEK) Operating margin MSEK 2006 2007² Q3 2007² Q3 2008² 400 10% 9% 350 Professional 11.7% 12.9% 13.4% 13.8% 8% 300 -7% Retail -0.9% 0.6% -3.6% -2.5% 250 6% 200 5% Tissue 8.5% 8.9% 9.1% 8.8% 4% 150 Non- 3% 100 recurring/ -1.3% 0.0% 0.3% -1.9% 2% derivati
Slide 16: Income Statement
Income Statement 2005 2006 2007 LTM Net sales 3,656 3,762 3,985 4,078 Cost of goods sold -2,829 -2,812 -2,948 -2,980 Gross profit 827 950 1,037 1,098 Gross margin 22.6% 25.3% 26.0% 26.9% Selling expenses -510 -459 -446 -461 Adminstrative expenses -185 -219 -208 -209 Research and development expenses
Slide 17: Balance Sheet
Balance Sheet (SEK in millions) 30/09/2008 30/09/2008 Intangible assets 1,226 Shareholders’ equity 1,484 Tangible assets 456 Interest bearing debt 1,188 Financial fixed assets 375 Pension liabilities 205 Inventory 619 Other long term liabilities 19 Accounts receivable 700 Accounts payable 285 Other
Slide 18: Simplified Cash Flow Profile
Simplified Cash Flow Profile 2007 2008 (SEK million) 2006 2007 9m 9m Operating profit 277 393 248 260 Depreciation 82 89 65 73 Change in operating working capital1) -32 20 -156 -275 Inventory 26 -24 -94 -109 Accounts receivable 8 14 -92 -131² Accounts payable -66 30 30 -35 Other operating working ca
Slide 19: Financial Targets
Financial Targets LTM ∙ Organic growth of 5% over a business cycle 2.7% Sales growth > 5% ∙ Consider acquisitions to reach new markets or to - strengthen current market positions ∙ Top-line growth – premium focus EBIT margin > 10% 9.9% ∙ Improvements in manufacturing and sourcing Dividend payout rat