Duni - Q1 Presentation 2013 · 2015-09-16 · 2013 Q1 Highlights • Professional – overall...

Q1 Presentation 201319 April, 2013

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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 presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.

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• This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,”“may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.

• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

2013 Q1 Highlights• Professional – overall stability with soft market

conditions in South – Although continuous weak market in South

Region, improvements visible in several markets.

– Profit negatively influenced by strong Swedish krona.

– Traditional restaurants weakest trend within HoReCa, further utilization on take-away trend accelerated.

• Consumer – Sales growth from new contracts

– Sales growth driven by two large contracts. – Increased geographical width initiated in the

quarter e.g. France and Poland. • Tissue – High temporary utilization influenced by

phase out decision. – Production output clearly higher compared to

last year, influenced by circumstances around phase out decision.

• Net debt continues to be on historical low levels, but negatively influenced by new accounting principles around pension debt (IAS 19)

• Net sales SEK 852 m(856)

• Underlying operating income SEK 55 m (60)

• Underlying operating margin 6.4% (7.0%)

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Market Outlook• HORECA market long-term growing in

line or slightly above GDP.– Mixed signals from numerous markets, but

main markets indicate zero growth.– Higher growth in take-away, catering and fast

restaurants.

• Macro statistics – latest statistics indicate real GDP growth on par or slightly better than 2012

– Consumer confidence still pessimistic, but with more positive outlook for Northern Europe.

• Pulp price slowly moving upwards. Energy prices normalized after low levels in 2012.

• Plastic prices still challenging and clearly higher than last year.

5

HoReCa Sales Development Germany 2012

Source: destatis

6

+1,5% in volume in Feb and +3,4% in value.

Restaurant Sales Development Sweden (Feb 2012 – Feb 2013)

Business Areas

8

Professional–Strong SEK continue to weight on the quarter

Sales and EBIT 1)

05001 0001 5002 0002 5003 000

2009 2010 2011 2012 LTM 2013

SE

K m

illi

on

s

0%

5%

10%

15%

Sales EBIT Margin

1) Excluding non-recurring costs and market valuation of derivatives

• Russia and export trigger for growth.

• Although cost pressure on traded goods, gross margin stable.

Geographical split – sales Q1 2013

626

10

99

377

140

Q1 2012

3.2%6.4%586TOTAL

0.0%0.0%10Rest of the World

1.0%5.1%94South & East Europe

4.2%8.5%345Central Europe

2.1%2.1%137Nordic

Growth at fixedexchangerates

GrowthQ1 2013Net salesProfessional

9

Consumer– Growth within all major regions

Sales and EBIT 1)

0

200

400

600

800

1 000

2009 2010 2011 2012 LTM 2013

SE

K m

illi

on

s

8%

6%

4%

2%

0%

2%

4%

6%

Sales EBIT Margin

Geographical split - sales Q1 2013

• Focus on reaching better price competitiveness in private label sector.

• Cooperation with well established designers in Nordic. Concept well received and reviewed for further expansion.

127

0

4

108

15

Q1 2012

15.0%10.2%140TOTAL

0.0%0.0%0Rest of the World

75.0%75.0%1South & East Europe

11.1%6.5%115Central Europe

60.0%60.0%24Nordic

Growth at fixedexchangerates

GrowthQ1 2013Net salesConsumer


10

Tissue– Temporary increase in production output

Internal 52%

External 48%

Sales mix Q1 2013

• Detailed plan around phase out currently reviewed.

• Sales positively influenced in first quarter by circumstances around decision to close hygiene business.

Sales and EBIT

0

100

200

300

400

500

600

2009 2010 2011 2012 LTM2013

0%2%4%6%8%10%12%14%

Sa les EBIT Ma r g in

11Financials

12

Significant FX effects

2.67

126

79

25

9.3%

342

113

229

77

26

176

438

25.8%9453 669

FY 2012

0.77

36

13

6

6.4%

55

0

55

6

5

39

115

25.7%219852

Q12013

2.650.78Earnings per share

12537Net income

7813Taxes

247Financial net

9.2%7.0%Operating margin (underlying)

33660Operating income (underlying)

1103Nonrecurring items1)22757Operating income (reported)

852Other operating net

238R&D expenses

17242Administrative expenses

431122Selling expenses

25.6%26.5%Gross margin938227Gross profit3 665856Net sales

Q1 LTM 2013

Q12012SEKm

1) Restructuring costs and market valuation of derivatives

Comparison figures for 2012 recalculated in accordance with IAS19R

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Increased Sales in Consumer & Tissue

7.0%

60

856

0.2%

0

104

0.9%

1

127

9.8%

61

626

Q1 2012

6.4%

55

852

3.2%

4

126

1.8%

3

140

9.1%

53

586

Q1 2013

Duni

Tissue

Consumer

Professional

SEKm

Operating margin

Operating income1)

Net sales

Operating margin

Operating income1)

Net sales

Operating margin

Operating income1)

Net sales

Operating margin

Operating income1)

Net sales

9.3%9.2%

342336

3 6693 665

0.2%0.6%

13

436459

1.0%0.7%

64

551564

12.6%12.5%

337329

2 6822 642

FY 2012

Q1 LTM 2013

1) Excluding non-recurring cost and market valuation of derivates


14

33

16

60

15

75

16

39

88

Q1 2012

21

49

0

7

11

53

14

84

Q1 2013

402

40

40

15

44

29

88

450

Q1 LTM 2013

414

73

20

7

20

66

113

454

FY 2012

Operating cash flow

Change in working capital

Other operating working capital

Accounts payable

Accounts receivable

Change in;

Inventory

Capital expenditure

EBITDA1)

SEKm



Seasonally Strong Cash Flow: Low Capex

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Pension Debt Impact from new IAS standard

1.4

30%

27%

14%

2 635

2 027

608

2 635

272

282

590

432

206

762

1 199

Q1 2013

638786Net debt

1 9882 082Equity

2 6262 868Equity and net debt

14%15%ROCE2)

28%28%ROCE2) w/o Goodwill

32%34%Net debt / Equity

1.41.5Net debt / EBITDA2)

2 6262 868Net assets

285242Other operating assets and liabilities3)

301287Accounts payable

624584Accounts receivable

387485Inventories

207230Net financial assets1)

795899Tangible and intangible fixed assets

1 1991 199Goodwill

FY 2012

Q1 2012SEKm

1) Deferred tax assets and liabilities + Income tax receivables and payables


3) Including restructuring provision and derivatives


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Financial Targets• Organic growth of 5% over a

business cycle

• Consider acquisitions to reach new markets or to strengthen current market positions

• Top line growth – premium focus

• Improvements in manufacturing, sourcing and logistics

• Target at least 40% of net profit

Sales growth > 5%

EBIT margin > 10%Underlying

Dividend payout ratio 40+%

-0.8%(at fixed

exchange rates)

9.2%

Q1 LTM 2013

3.50 SEK per share (proposal)

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Thank you!

Duni - Q1 Presentation 2013 · 2015-09-16 · 2013 Q1 Highlights • Professional – overall...

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Transcript of Duni - Q1 Presentation 2013 · 2015-09-16 · 2013 Q1 Highlights • Professional – overall...