Duni Ab · OMXSTO:DUNI

Duni Ab — Q4 2015 Earnings Presentation

23 slides from Duni Ab's earnings presentation, Feb 12, 2016

  1. Slide 1: Q4 Presentation 2015

    12 February 2016 Q4 Presentation 2015 Eng US

  2. 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

  3. Slide 3: 2015 Q4 Highlights

    2015 Q4 Highlights • Modest organic growth with exception of • Net sales SEK 1 170 m Meal Service which accelerated its growth (1 134) rate in Q4. • Operating income SEK 171 m • Majority of the markets in Business Area (164) Table Top with growth, but Germany • Operating margin 14.6% behind last yea

  4. Slide 4: 11 consecutive quarters with increased operating income (LTM)

    11 consecutive quarters with increased operating income (LTM) 550 525 500 475 MSEK 450 425 400 375 350 325 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2

  5. Slide 5: Market Outlook

    Market Outlook

  6. 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 compared to traditional full service restaurants. − Minor growth of 1% (real) for restaurant sector in Germany, but slightly higher for hotel sector. Impro

  7. Slide 7: Business Areas

    Business Areas Eng US

  8. Slide 8: Table Top

    Table Top Growth in the majority of the markets, but Germany still behind.

  9. Slide 9: Table Top

    Q4, 2015 Table Top • UK & Benelux with healthy growth levels, but Germany S A L E S & O P E R AT I N G M A R G I N 1) and Norway falling behind. • Table cover segment in Germany main explanation NET SALES, SEK m for decrease in Germany. 2 300 2 266 Premium Napkins with 2 200 2 179 positive developme

  10. Slide 10: Meal Service

    Meal Service Accelerated growth in the fourth quarter. 10

  11. Slide 11: Meal Service

    Q4, 2015 • Growth above 10%, in most Meal Service markets. • Contrary to Table Top, Meal S A L E S & O P E R AT I N G M A R G I N 1) Service is growing NET SALES, SEK m significantly in Germany. 1000 • With exception for Norway, 509 555 616 Nordic Region is growing in 500 spite of fierce competition

  12. Slide 12: Consumer

    Consumer Modest growth, but with improved profitability.

  13. Slide 13: Consumer

    Q4, 2015 Consumer • Germany unchanged compared to previous S A L E S & O P E R AT I N G M A R G I N 1) year despite weak NET SALES, SEK m Christmas season. 2000 • With the exception of 1063 1000 603 889 Finland, Nordic 0 experienced a weak 1 quarter as a result from 2013 2014 2015 lost contracts. OP

  14. Slide 14: New Markets

    New Markets Positive development even though Russia remains challenging. 14

  15. Slide 15: New Markets

    New Markets • Operating margin strengthened due to less S A L E S & O P E R AT I N G negative effects from weakening Russian M A R G I N 1) Ruble seen in Q4 2014. 250 • Russian Ruble continues to deteriorate and 200 now on record weak levels. 150 100 150 195 207 • Asia and Middle East continue to gr

  16. 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

  17. Slide 17: Financials

    Financials Eng US

  18. Slide 18: Operating margin FY 2015 12.6%

    Operating margin FY 2015 12.6% SEK m Q4 2015 Q4 2014 FY 2015 FY 2014 Continuing operations Net sales 1 170 1 134 4 200 3 870 Gross profit 358 353 1 241 1 134 Gross margin 30,6% 31,1% 29,6% 29,3% Selling expenses -123 -122 -476 -456 Administrative expenses -64 -57 -240 -211 R & D expenses -3 -2 -10 -

  19. Slide 19: Strong improvements in New Markets

    Strong improvements in New Markets SEK m Q4 2015 Q4 2014 FY 2015 FY 2014 Table Top Net Sales 612 604 2 266 2 179 Operating income 1) 118 126 392 373 Operating margin 19.2% 20.8% 17.3% 17.1% Meal Service Net Sales 162 144 616 555 Operating income 1) 8 6 33 19 Operating margin 4.7% 3.9% 5.3% 3.5% Cons

  20. Slide 20: Solid Cash Flow performance

    Solid Cash Flow performance SEK m Q4 2015 Q4 2014 FY 2015 FY 2014 Continuing operations EBITDA from continuing operations 1) 205 197 656 572 Capital expenditure -56 -35 -161 -87 Change in; Inventory 60 68 -23 -17 Accounts receivable 42 20 18 -12 Accounts payable 54 6 51 -16 Other operating working c

  21. Slide 21: Ratios on par with historically strongest levels

    Ratios on par with historically strongest levels SEK m December 2015 December 2014 Goodwill 1 455 1 463 Tangible and intangible fixed assets 1 132 1 163 Net financial assets 1) -72 -1 Inventories 500 503 Accounts receivable 660 743 Accounts payable -352 -341 Other operating assets and liabilities 3)

  22. Slide 22: Sales growth, operating margin, dividend payout ratio targets

    Sales growth Organic growth of 5% over a 2015 business cycle > 5% Consider acquisitions to reach new markets or to strengthen 1.3% current market positions at fixed exchange rates, excluding hygiene business1) Operating margin 2015 Top line growth – premium focus > 10% Improvements in 12.6% manufact

  23. Slide 23: Thank you!

    Thank you!

Duni — Q4 2015 Earnings Presentation on 6ix