Duni Ab · OMXSTO:DUNI
Duni Ab — Q4 2008 Earnings Presentation
20 slides from Duni Ab's earnings presentation, Feb 18, 2009
Slide 1: Q4 2008 Presentation
Q4 2008 Presentation www.duni.com 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 Q4 highlights Business areas Financials 3
Slide 4: 2008 Q4 Highlights
2008 Q4 Highlights • Net sales increased with 1.9% to SEK 1145 m • Underlying operating profit¹ amounted to SEK 145 m (148) • Underlying operating margin¹ amounted to 12.7% (13.2%) • Stable volumes and improved operating profit in Professional • Recession impacting sales in Eastern Europe • Growth i
Slide 5: 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 2008 Tissue 13% ∙ Sales: SEK 4.1 billion (+2.9%) Professional Retail 68% 19% ∙ EBIT: SEK 414 million (395) ¹ ∙ EBIT margin: 10.1% (9.9%) ¹ Manufactured Oct – Dec 2008 Napkins Plates Table coverings ∙ Sa
Slide 6: 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 7: Value 2000-2007 (million €), Commercial Food Service
Value 2000-2007 (million €)1), Commercial Food Service* 45000 42659 41247 41821 40000 35029 34455 35000 32054 30000 25000 2000 20000 2007 15000 10284 10000 8052 5310 4347 5000 0 FR DE NL SE UK CAG (Annual Average 2.36% 2.81% 3.56% 2.90% 4.17% Rate of Change) 1) Foodservice Annual Count and Expenditu
Slide 8: Number of Meals 2000-2007 (million), Commercial Food Service
Number of Meals 2000-2007 (million)1), Commercial Food Service* 7 000 5845 2000 6 000 5588 2007 5 000 4688 3946 4 000 3500 3071 3 000 2 000 1504 1321 1 000 601 679 0 FR DE NL SE UK CAG (Annual Average 1.89% 0.64% 1.87% 1.77% 2.49% Rate of Change) 1) Foodservice Annual Count and Expenditures Tracking
Slide 9: 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 9 Source: BROG Media Biznes
Slide 10: Business Areas
Business Areas} nail (Duni)
Slide 11: Professional – Stable Development
Professional – Stable Development Sales Sales and EBIT 11 and EBIT Geographical Geographical split split –– sales sales Q4 Q4 2008² 2008² MSEK 3,000 14% Net Sales - Professional Q4 2008 Q4 2007 Growth 12% 2,500 Nordic region 178 197 -9,5% 10% Central Europe 444 406 9,5% 2,000 Southern & Eastern Euro
Slide 12: Retail – Turnaround
Retail – Turnaround Sales Sales and EBIT 11 and EBIT Geographical Geographical split split –– sales sales Q4 Q4 2008² 2008² MSEK 900 -+6% Net Sales - Retail Q4 2008 Q4 2007 Growth 850 -+4% Nordic region 44 54 -18,7% Central Europe 209 209 -0,2% +2% 800 Southern & Eastern Europe 9 5 67,4% Rest of the
Slide 13: Tissue
Tissue Sales Sales and EBIT 11 and EBIT Sales Sales mix mix Q4 Q4 2008 2008 MSEK 650 14% 12% 600 Internal 10% 49% 550 External 51% 8% 500 6% 450 4% 400 2% Tissue Tissue In-house In-house creates creates competitive competitive advantage advantage 350 0% 2005 2006 2007 2008 Sales EBIT margin 2008 200
Slide 14: Financials
Financials 14
Slide 15: Stable Development in Professional
Stable Development in Professional LTM LTM Sales Sales Sales Sales growth growth MSEK MSEK 2007 2008 2006 2007 2008 Q4 Q4 4 100 1 150 4 050 1 100 Professional 5.7% 6.3% 2.6% 4.4% 4.9% 1 050 4 000 Retail -6.2% 4.2% -5.0% -2.6% -2.9% 1 000 3 950 950 Tissue 4.5% 6.9% 7.9% -4.4% 1.3% 3 900 900 Total 2.9
Slide 16: Healthy Underlying Margin Development
Healthy Underlying Margin Development Operating Operating profit profit (MSEK) (MSEK) Operating Operating margin margin MSEK 2007 2008 2006¹ 2007² 2008² 400 10% Q4² Q4² 9% 350 Professional 11.7% 12.9% 15.7% 16.2% 13.3% 8% 300 -7% Retail -0.9% 0.6% 7.6% 8.1% 1.5% 250 6% 200 5% Tissue 8.5% 8.9% 9.9% 1
Slide 17: Income Statement
Income Statement 2005 2006 2007 2008 Net sales 3,656 3,762 3,985 4,099 Cost of goods sold -2,829 -2,812 -2,948 -3,020 Gross profit 827 950 1,037 1,079 Gross margin 22.6% 25.3% 26.0% 26.3% Selling expenses -510 -459 -446 -465 Adminstrative expenses -185 -219 -208 -198 Research and development expense
Slide 18: Balance Sheet
Balance Sheet (SEK in millions) 31/12/2008 31/12/2008 Intangible assets 1,224 Shareholders’ equity 1,544 Tangible assets 514 Interest bearing debt 1,151 Financial fixed assets 369 Pension liabilities 201 Inventory 542 Other long term liabilities 28 Accounts receivable 731 Accounts payable 358 Other
Slide 19: Simplified Cash Flow Profile
Simplified Cash Flow Profile 2007 2008 (SEK million) 2006 2007 2008 Q4 Q4 Operating profit ¹) 327 395 148 145 414 Depreciation 82 90 22 23 97 Change in trading capital2) -106 -28 105 142 -75 Inventory 26 -24 70 106 -3 Accounts receivable 8 14 130 18 -114³) Accounts payable -66 30 -4 50 15 Other oper
Slide 20: Financial Targets
Financial Targets 2008 ∙ Organic growth of 5% over a business cycle 2.9% Sales Sales growth growth >> 5% 5% ∙ Consider acquisitions to reach new markets or to - strengthen current market positions ∙ Top-line growth – premium focus EBIT 10.1% EBIT margin margin >> 10% 10% ∙ Improvements in manufactur