Q1 Presentation 2013 19 April, 2013 Disclaimer This presentation - - PDF document

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Q1 Presentation 2013 19 April, 2013 Disclaimer This presentation - - PDF document

Q1 Presentation 2013 19 April, 2013 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


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Q1 Presentation 2013

19 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

  • ther 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.

  • This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is

defined under Regulation S promulgated under the Securities Act of 1933, as amended.

  • 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

  • ther 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

  • perates, 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.

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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.

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HoReCa Sales Development

Germany 2012

Source: destatis

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

Restaurant Sales Development

Sweden (Feb 2012 – Feb 2013)

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Business Areas

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Professional

–Strong SEK continue to weight on the quarter

Sales and EBIT 1)

500 1 000 1 500 2 000 2 500 3 000 2009 2010 2011 2012 LTM 2013

SEK m illio ns

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% 586 TOTAL 0.0% 0.0% 10 Rest of the World ­1.0% ­5.1% 94 South & East Europe ­4.2% ­8.5% 345 Central Europe ­2.1% ­2.1% 137 Nordic

Growth at fixed exchange rates

Growth Q1 2013 Net sales Professional

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Consumer

– Growth within all major regions

Sales and EBIT 1)

200 400 600 800 1 000 2009 2010 2011 2012 LTM 2013

SEK m illio ns

­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 4 108 15 Q1 2012 15.0% 10.2% 140 TOTAL 0.0% 0.0% Rest of the World ­75.0% ­75.0% 1 South & East Europe 11.1% 6.5% 115 Central Europe 60.0% 60.0% 24 Nordic

Growth at fixed exchange rates

Growth Q1 2013 Net sales Consumer

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

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Tissue

– Temporary increase in production output

Internal 52% External 48%

Sales m ix 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

100 200 300 400 500 600 2009 2010 2011 2012 LTM 2013 0% 2% 4% 6% 8% 10% 12% 14%

Sa les EBIT Ma r gin

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Financials

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Significant FX effects

2.67 126 ­79 ­25 9.3% 342 ­113 229 ­77 ­26 ­176 ­438 25.8% 945 3 669

FY 2012

0.77 36 ­13 ­6 6.4% 55 55 ­6 ­5 ­39 ­115 25.7% 219 852

Q1 2013

2.65 0.78 Earnings per share 125 37 Net income ­78 ­13 Taxes ­24 ­7 Financial net 9.2% 7.0% Operating margin (underlying) 336 60 Operating income (underlying) ­110 ­3 Non­recurring items1) 227 57 Operating income (reported) ­85 2 Other operating net ­23 ­8 R&D expenses ­172 ­42 Administrative expenses ­431 ­122 Selling expenses 25.6% 26.5% Gross margin 938 227 Gross profit 3 665 856 Net sales

Q1 LTM 2013 Q1 2012 SEKm

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% 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% 342 336 3 669 3 665 ­0.2% 0.6% ­1 3 436 459 1.0% 0.7% 6 4 551 564 12.6% 12.5% 337 329 2 682 2 642

FY 2012 Q1 LTM 2013

1) Excluding non-recurring cost and market valuation of derivates Comparison figures for 2012 recalculated in accordance with IAS19R

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33 ­16 ­60 ­15 75 ­16 ­39 88

Q1 2012

21 ­49 ­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

1) Excluding non-recurring costs and market valuation of derivatives Comparison figures for 2012 recalculated in accordance with IAS19R

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

638 786 Net debt 1 988 2 082 Equity 2 626 2 868 Equity and net debt 14% 15% ROCE2) 28% 28% ROCE2) w/o Goodwill 32% 34% Net debt / Equity 1.4 1.5 Net debt / EBITDA2) 2 626 2 868 Net assets ­285 ­242 Other operating assets and liabilities3) ­301 ­287 Accounts payable 624 584 Accounts receivable 387 485 Inventories 207 230 Net financial assets1) 795 899 Tangible and intangible fixed assets 1 199 1 199 Goodwill

FY 2012 Q1 2012 SEKm

1) Deferred tax assets and liabilities + Income tax receivables and payables 2) Excluding non-recurring costs and market valuation of derivatives 3) Including restructuring provision and derivatives Comparison figures for 2012 recalculated in accordance with IAS19R

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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 20 13

3.50 SEK per share (proposal)

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Thank you!