http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/RSS.ashxDUNI PagesFri, 09 Apr 2010 15:06:04 +0200http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=1http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=1Interim Report for Duni AB (publ) 1 January – 31 December 2009 (compared with the same period of the previous year) 17 February 2010 Strong earnings in the seasonally most important quarter 1 January – 31 December 2009     Net sales increased by 3.0% to SEK 4,220 m (4,099). Earnings per share for continuing operations amounted, after dilution, to SEK 7.15 (4.06). A very strong cash flow during the past twelve months leads to a decrease in net debt by SEK 469 m to SEK 631 m (1,100). The board proposes a dividend of SEK 2.50 (1.80) per share. 1 October – 31 December 2009    Net sales increased by 1.0% to SEK 1,157 m (1,145). Earnings per share for continuing operations amounted, after dilution, to SEK 2.79 (0.76). Operating income in all business areas improved compared with the same period of last year. Key financials 12 months JanuaryDecember 2009 Net sales, SEK m Operating income1), SEK m Operating margin1), % Income after financial items, SEK m Net income2), SEK m 1) 2) 12 months JanuaryDecember 2008 4 099 414 10.1% 251 191 3 months OctoberDecember 2009 1 157 167 14.4% 166 131 3 months OctoberDecember 2008 1 145 145 12.7% 39 36 4 220 436 10.3% 444 336 Before an unrealized valuation effect of derivatives, due to the non-application of hedge accounting, of SEK 54 m (-48) 1 January – 31 December, SEK 6 m (-39) 1 October – 31 December and before restructuring costs of SEK 2 m (41) 1 January – 31 December, SEK 0 m (41) 1 October – 31 December. With respect to continuing operations. CEO’s comments "Duni delivered a strong fourth quarter with an operating income of SEK 167 m, compared with SEK 145 m last year. The important Christmas season turned out well with a volume development that demonstrates continued stabilization. A modest improvement was noted within the Professional business area, while Retail lost approximately 3% in volume during the period. _____________________________________________________________________________________________________________________________________________________ Duni is a leading supplier of attractive and convenient products for table setting and takeaway. The Duni brand is sold in more than 40 markets and enjoys a number one position in Central and Northern Europe. Duni has some 2,000 employees in 17 countries, headquarters in Malmö and production units in Sweden, Germany and Poland. Duni is listed on NASDAQ OMX Nordic Stockholm under the ticker name “DUNI”. ISIN-code is SE 0000616716. 12010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=2http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=2Sales in the quarter were up 1% at SEK 1,157 m. It is worth noting that the weak Swedish krona had significantly less impact than in preceding quarters. At fixed exchange rates, sales were unchanged. The gross margin strengthened considerably, 3 percentage points, during the final quarter of the year. This is mainly due to the fact that increases in raw material cost have not yet been impacted on the product cost. At the same time, we see an effect of cost savings, an improved product mix and, primarily within Retail, also an improved customer mix. The Professional business area performed well. The operating margin reached 17.8%, compared with 16.2% in the fourth quarter of 2008. Central Europe continues to deliver strong results and we noted a modest volume growth on the German market. Eastern Europe experienced yet another tough quarter. But our belief in growth in the region in the longer term remains intact and, during the quarter, we have taken further steps to strengthen our sales organization, with the emphasis on Russia. Within Retail, which is even more seasonally dependent, operating income improved somewhat with an operating margin of 10.1%. On a full-year basis, the operating margin reached 2.2%, thereby taking a small step towards our target 5%, despite tough market conditions. A strong focus on customer profitability combined with sound cost control and a systematic product range optimization has yielded results. Now the challenge is to grow with profitable customers based on a more efficient sales and marketing approach. The improved demand for hygiene products in the Tissue business area continued during the fourth quarter. Both sales and operating margin were slightly better than last year. An operating margin of 3% is, however, below the normal historical level. Despite the weak economy in 2009, Duni has succeeded in advancing its positions thanks to a strong brand, continued high pace of product development and a successful sales model. We are emerging strongly from the crisis which will enable us to continue our future investments for profitable growth. At present, we still see a slow recovery in the short term. Despite this, prices of important raw materials have continued to increase rapidly, which poses a challenge when demand continues to be at a low level. It is also important to note that a stronger Swedish krona has a negative impact on Duni’s result," says Fredrik von Oelreich, President and CEO, Duni. ___________________________________________________________________________ Net sales increased by 3.0% Demand has gradually stabilized following a weaker first half of the year. During the period 1 January – 31 December 2009, net sales increased by 3.0% compared with the same period of last year, to SEK 4,220 m (4,099). With unchanged exchange rates, net sales would have been SEK 230 m lower for the period. With fixed exchange rates, this entails a decline in sales of 2.7%. During the period 1 October – 31 December 2009, net sales increased by SEK 12 m to SEK 1,157 m (1,145). With unchanged exchange rates from the preceding year, net sales would have been SEK 10 m lower for the period. The increase in sales in the fourth quarter, measured at fixed exchange rates, is 0.2%. The fourth quarter confirms a more stable market situation within business areas Professional and Tissue. Operating margin of 10.3% Operating income (EBIT) adjusted for non-recurring items amounted to SEK 436 m (414) for the period 1 January – 31 December 2009. The gross margin reached 27.6% (26.8%), an improvement which is primarily attributable to the weak Swedish krona. The gross margin has also been positively affected by lower costs for input material together with general cost savings. The underlying operating margin ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varv2010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=3http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=3increased to 10.3% (10.1%). With unchanged exchange rates from the preceding year, the underlying operating profit would have been SEK 54 m lower. Income after financial items amounted to SEK 444 m (251). Income after tax amounted to SEK 336 m (191). For the period 1 October – 31 December 2009, operating income (EBIT) adjusted for non-recurring items amounted to SEK 167 m (145). The gross margin improved from 27.8% to 30.8% compared with the same period last year. This significant improvement is to a large extent attributable to continued lower costs of input material and the effects of the cost saving program. In addition, the product mix has had a positive impact since premium sales strengthened further. However, energy prices increased in the fourth quarter and had a negative impact on margins. The underlying operating margin increased to 14.4% (12.7%). With unchanged exchange rates from the preceding year, the underlying operating income would have been SEK 8 m lower. Income after financial items amounted to SEK 166 m (39). Income after tax amounted to SEK 131 m (36). Non-recurring items Non-recurring items refers to restructuring expenses as well as non-realized valuation effects of derivatives due to the fact that hedge accounting is not applied. Non-realized valuation effects of derivatives affect the reported income for 1 January – 31 December by SEK 54 m (-48) and, for the period 1 October – 31 December, by SEK 6 m (-39). Additional restructuring costs of SEK 2 m (41) were incurred for the full year and SEK 0 m (41) for the fourth quarter. For further information, see Note 5. During the second quarter of 2009, the board decided to cease hedging of future operating flows. Previously executed contracts will gradually be wound up. 12 months JanuaryDecember 2009 436 54 -2 488 12 months JanuaryDecember 2008 414 -48 -41 326 3 months OctoberDecember 2009 167 6 0 173 3 months OctoberDecember 2008 145 -39 -41 66 Non-recurring items SEK m Underlying operating income Unrealized value changes, derivative instruments Restructuring costs Reported operating income Reporting of operating segments Duni's operations are divided into three segments, referred to as business areas. The Professional business area (sales to hotels, restaurants and catering companies) accounted for 68% (68%) of Duni's net sales for the period 1 January – 31 December 2009. The Retail business area (primarily focused on retail trade) accounted for 19% (19%) of net sales during the period. Table Top Professional 68% Duni Tissue Retail 19% 13% Split between business areas ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 32010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=4http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=4The Tissue business area (airlaid and tissue-based material for tabletop products and hygiene applications) accounted for 13% (13%) of sales to external customers during the period. The Professional and Retail business areas have, to a large extent, a common product range. Design and packaging solutions are, however, adapted to suit the different sales channels. Production and support functions are shared to a large degree by the business areas. Duni has chosen to report the results for the business areas on an underlying EBIT level, after common costs have been allocated to each respective business area. For further information see Note 4. Professional business area Net Sales – Professional, SEK m Nordic region Central Europe Southern & Eastern Europe Rest of the World Total 12 months JanuaryDecember 2009 639 1 755 467 24 2 885 12 months JanuaryDecember 2008 664 1 616 469 22 2 771 3 months OctoberDecember 2009 177 464 118 7 766 3 months OctoberDecember 2008 178 444 124 7 753 Change -3.8% 8.6% -0.4% 9.1% 4.1% Change -0.6% 4.5% -4.8% 0.0% 1.7% Net sales increased by 4.1%, to SEK 2,885 m (2,771) for the period 1 January – 31 December 2009. With unchanged exchange rates from the preceding year, net sales would have been SEK 192 m lower for the period, yielding a decline in sales of 2.8%. Central Europe has, however, been successful in maintaining sales volumes, primarily in the fourth quarter. Southern and Eastern Europe has experienced a tough business climate which is reflected in the volumes, including in the fourth quarter. Operating income was SEK 402 m (368), with an increase in operating margin to 13.9% (13.3%). A weak Swedish krona in combination with lower costs for input materials and cost savings within logistics, sales and administration are the main explanations for this strong margin. Southern & Eastern Euro pe 16% (17%) Rest o f th e world 1% (1%) No rdic 22% (24%) Central Euro pe 61% (58%) Sales - Geographical split, Professional For the period 1 October – 31 December, net sales increased by SEK 13 m to SEK 766 m (753). Operating income increased to SEK 137 m (122), with a strong operating margin of 17.8% (16.2%). ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 42010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=5http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=5Retail business area 12 months JanuaryDecember 2009 116 643 32 2 792 12 months JanuaryDecember 2008 148 610 19 0 777 3 months OctoberDecember 2009 39 200 19 0 257 3 months OctoberDecember 2008 44 209 9 0 261 Net Sales – Retail, SEK m Nordic region Central Europe Southern & Eastern Europe Rest of the World Total Change -21.6% 5.4% 68.4% 200% 1.9% Change -11.4% -4.3% 111.1% 0.0% -1.5% In the Nordic region Duni has experienced the weakest sales growth, which is largely due to structural changes implemented during the year. During the quarter, Retail Nordic concluded an agreement with Sales Support Sweden AB which will provide an improved market coverage and activity on store level on the Swedish market, commencing the first quarter of 2010. Central Europe has strengthened its position as the dominant region, but fell back in the fourth quarter. Net sales increased by SEK 15 m to SEK 792 m (777) for the period 1 January – 31 December 2009. With unchanged exchange rates from the preceding year, net sales would have been SEK 38 m lower for the period. Operating income was SEK 18 m (11), with an improvement in the operating margin from 1.5% to 2.2%. Net sales for the period 1 October – 31 December amounted to SEK 257 m (261). Operating income was SEK 26 m (21), and the operating margin improved from 8.1% to 10.1%. This improvement in operating income is attributable to a strong gross margin due to lower product and logistics costs. Southern & Eastern Europe 4% (2%) Nordic 15% (19%) Central Europe 81% (79%) Tissue business area Net sales declined by 1.5% to SEK 543 m (551) for the period 1 January – 31 December 2009. Operating income declined to SEK 16 m (35) and the operating margin was 3.0% (6.3%). The weaker income is attributable primarily to increased unit production costs due to lower sales volumes, primarily during the first half of the year. Reduction in inventory during the year has also contributed to lower production volumes for the Tissue business area. Sales - Geographical split, Retail External 53% (52%) Net sales were SEK 134 m (131) for the period 1 October – 31 Internal December. Operating income amounted to SEK 4 m (2) and the 47% operating margin improved from 1.3% to 3.1% compared with the Sales mix, Tissue (48%) same period of last year. The stabilization of volumes which was discernible in the third quarter continued into the fourth quarter, which is reflected in the somewhat stronger operating margin. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 52010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=6http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=6In June 2009, the board of Directors decided to invest in a new bio-boiler at the paper mill in Skåpafors. The new boiler will reduce CO2 emissions, as the use of fossil fuel will be significantly reduced. This will also reduce waste disposal. The new bio-boiler will be operational during the second half of 2010. Cash flow The Group's operating cash flow for the period 1 January – 31 December has increased substantially, from SEK 274 m to SEK 626 m. Systematic measures in order to improve the supply chain and an efficient follow up of accounts receivable have had a significant impact on working capital. This is mostly reflected in the value of inventories. Inventory value has declined by SEK 160 m to SEK 382 m and accounts receivable have declined by SEK 91 m since 31 December 2008, to SEK 640 m. Despite the prevailing economic climate, Duni has not incurred any major credit losses. The cash flow trend was also positively affected by lower interest expenses. The Group's interest-bearing net debt as per 31 December is SEK 631 m, compared with SEK 1,100 m as per 31 December 2008, see the comment in Note 2. Financial net The financial net for the period 1 January - 31 December was SEK -43 m (-75). Less debt and lower market interest rates contributed to lower interest expenses. Evaluation of cash balances in foreign currencies has resulted in the financial net fluctuating somewhat between quarters. Taxes The total reported tax expense for the period 1 January – 31 December was SEK 108 m (60) which gives an effective tax rate of 24,4% (23,9%). During the year, the deferred tax asset relating to losses carryforward was utilized in the amount of SEK 22 m (45). Lower utilization of losses carry-forward compared with last year is due to lower earnings in the Group's Swedish companies. Earnings per share The period's earnings per share for continuing operations before and after dilution were SEK 7.15 (4.06). Duni's share As per 31 December 2009 the share capital amounted to SEK 58,748,504 divided into 46,999,032 shares, each with a quotient value of SEK 1.25. Shareholders Duni is listed on NASDAQ OMX Nordic Stockholm under the ticker name "DUNI". Duni's three largest shareholders, as per 31 December 2009, are Mellby Gård Investerings AB (29.99%), Polaris Capital Management, LLC (12.19%) and SEB Investment Management (6.77%). Personnel On 31 December 2009 there were 1,906 (1,952) employees. 823 of the employees were engaged in production. Duni's production units are located in Bramsche in Germany, Poznan in Poland, and Bengtsfors in Sweden. The reduction in personnel is a consequence of the cost saving measures that Duni initiated at the end of last year. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 62010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=7http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=7Acquisitions No acquisitions were carried out during the period. New establishment No new establishments were carried out during the period. Risk factors for Duni A number of risk factors may affect Duni's operations in terms of both operational and financial risks. Operational risks are normally handled by each operating unit and financial risks are managed by the Group's Treasury department, which is included as a unit within the Parent Company. Operational risks Duni is exposed to a number of operational risks which it is important to manage. The development of attractive product ranges, particularly the Christmas collection, is extremely important in order for Duni to achieve good sales and income growth. Duni addresses this issue by constantly developing its range. Approximately 25% of the collection is replaced each year in response to, and to create new, trends. A weaker economy over an extended period of time in Europe might lead to fewer restaurant visits, reduced consumption at consumer level and increased price competition, which may affect volumes and gross margins. Control and management of fluctuations in prices of raw materials and energy have a major impact on Duni’s competitiveness. Due to the fact that hedge accounting is not applied, Duni has an increased accounting exposure, as unrealized profits or losses related to derivative instruments are accounted for in the income statement. Financial risks Duni’s finance management and its handling of financial risks are regulated by a finance policy adopted by the Board of Directors. The Group divides its financial risks between currency risks, interest rate risks, credit risks, financing and liquidity risks. These risks are controlled in an overall risk management policy which focuses on unforeseen events on the financial markets and endeavors to minimize potential adverse effects on the Group’s financial results. The risks for the Group are in all essential respects also related to the parent company. Duni's management of financial risks is described in greater detail in the Annual Report as per 31 December 2008. Since 2007, Duni's long-term financing has been secured through financing agreements valid until 2012. Contingent liabilities have increased from SEK 42 m to SEK 72 m since the beginning of the year. The increase is the result of additional security for energy trade within the Tissue business area. Transactions with related parties No transactions with related parties took place during the fourth quarter of 2009. Events since 31 December No significant events have occurred after the balance sheet date. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 72010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=8http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=8Interim reports Quarter I Quarter II Quarter III 29 April 2010 16 July 2010 27 October 2010 Proposed dividend The board proposes a dividend of SEK 2.50 (1.80) per share or SEK 117 m (85). The board believes that the proposed dividend provides scope for the Group to perform its obligations and implement planned investments. 10 May 2010 is proposed as the record date for the right to receive dividend. 2010 Annual General Meeting The Annual General Meeting of Duni AB will be held in Malmö on Wednesday, 5 May 2010 at 3 PM at Skånes Dansteater. For further information, consult Duni's website. The annual report will be available to shareholders on Duni's website during the week of Monday, 5 April. Shareholders who wish to submit proposals to Duni's Nomination Committee or to have a matter addressed at the Annual General Meeting may do so by e-mail to valberedningen@duni.com or bolagsstamma@duni.com or by letter to: Duni AB, Att: Valberedningen or Bolagsstämma, Box 237, 201 22 Malmö, not later than 17 March 2010. Composition of the Nomination Committee The Nomination Committee is a shareholder committee which is responsible for nominating the persons to be proposed at the Annual General Meeting for election to Duni's board. The Nomination Committee submits proposals regarding the chairman of the board and other directors. It also produces proposals regarding board fees, including the allocation between the chairman and other directors, and any compensation for committee work. Duni's Nomination Committee pending the 2010 Annual General Meeting comprises four members: Anders Bülow, chairman of Duni AB and chairman of the Nomination Committee; Rune Andersson, Mellby Gård Investerings AB, Bernard R. Horn, Jr, Polaris Capital Management, LLC, and Göran Espelund, Lannebo Fonder. The parent company Net sales for the period 1 January – 31 December 2009 were SEK 1,180 m (1,244). Income after financial items was SEK 500 m (181). During the period, the parent company has received more dividends from subsidiaries than in the same period of last year. Net debt amounted to SEK -52 m (563), of which a net asset of SEK 641 m (541) relates to subsidiaries. The external loans have been amortized net with SEK 391 m since year end. Other receivables on the balance sheet have increased due to increased lending to subsidiaries. Net investments amounted to SEK 22 m (16). Group structure and reporting During 2006 and at the beginning of 2007, Duni completed the work of concentrating its operations to its core business, in principle corresponding to the former Duni Europe. In order to facilitate a relevant comparison between the years, only the new Group structure is reported in full and designated in this report as "continuing operations". In December 2008, the provision for capital gains on the sale of Duni Americas was settled and thus Duni will continue to maintain the concept "continuing operations" up to and including the interim report for the period 1 January – 30 September 2010. There are no minority interests in Duni. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 82010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=9http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=9Accounting principles This interim report has been prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. The parent company’s financial statements are prepared in accordance with RFR 2.2, Reporting for Legal Entities, and the Swedish Annual Accounts Act. The accounting principles applied are those described in the annual report as per 31 December 2008 with the changes described in Note 1. Information in the report The information is such that Duni is obliged to publish pursuant to the Securities Market Act. The information will be disclosed to the media for publication at 8 AM CET on 17 February. The interim report will be presented on Wednesday, 17 February at 9.30 AM CET at a telephone conference which also can be followed via the web. To participate in the telephone conference, please dial +46 (0)8 5052 0114. To follow the presentation via the web, please visit this link: http://events.webeventservices.com/duni/2010/02/17/ This report has been prepared in both a Swedish and an English version. In the event of any discrepancy between the two, the Swedish version shall apply. Malmö, 16 February 2010 Fredrik von Oelreich, President and CEO Additional information is provided by: Fredrik von Oelreich, President and CEO, +46 40 10 62 00 Mats Lindroth, CFO, +46 40 10 62 00 Fredrik Wahrolén, Marketing and Communications Manager, +46 734 19 62 07 Duni AB (publ) Box 237 201 22 Malmö Tel.: +46 40 10 62 00 www.duni.com Registration no: 556536-7488 ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 92010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=10http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=10Consolidated Income Statements 12 months JanuaryDecember 2009 4 220 -3 054 1 166 -482 -184 -29 107 -90 (Note 4) 488 2 -45 -43 444 -108 (Note 3) 336 336 12 months 3 months 3 months JanuaryOctober- OctoberDecember December December 2008 2009 2008 4 099 1 157 1 145 -3 020 -800 -848 1 079 357 297 -465 -198 -23 57 -124 326 8 -83 -75 251 -60 191 6 197 -128 -43 -10 9 -12 173 0 -7 -7 166 -35 131 131 -119 -51 -6 14 -69 66 3 -30 -27 39 -3 36 6 42 SEK m Net Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Research and development expenses Other operating incomes Other operating expenses Operating income Financial income Financial expenses, etc. Net financial items Income after financial items Income tax Net income, continuing operations Net income, discontinued operations Net Income Income attributable to: Equity holders of the Parent Company (Note 1,5) 336 197 131 42 Earnings per share, continuing operations, SEK Before and after dilution Average number of shares before and after dilution (´000) Earnings per share, discontinued operations, SEK Before and after dilution Average number of shares before and after dilution (´000) Earnings per share, attributable to equity holders of the Parent Company, SEK Before and after dilution Average number of shares before and after dilution (´000) 7.15 46 999 4.06 46 999 2.79 46 999 0.76 46 999 46 999 0.13 46 999 46 999 0.13 46 999 7.15 46 999 4.19 46 999 2.79 46 999 0.89 46 999 ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 102010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=11http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=11Statement of comprehensive income 12 months JanuaryDecember 2009 336 -6 -6 330 12 months 3 months 3 months October- OctoberJanuaryDecember December December 2008 2009 2008 197 131 42 16 16 213 0 131 131 18 18 60 Net income of the period Comprehensive income Exchange rate differences - translation of subsidiaries Comprehensive income of the period Sum of comprehensive income of the period Comprehensive income of the period attributable to: Equity holders of the Parent Company 330 213 131 60 Comprehensive income consists of translation differences with no tax effects. Consolidated Quarterly Income Statements in brief Quarter Net Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Research and development expenses Other operating incomes Other operating expenses Operating income Financial income Financial expenses etc. Net financial items Income after financial items Income tax Net income, continuing operations Net income, discontinued operations Net Income OctDec 1 157 -800 357 -128 -43 -10 9 -12 173 0 -7 -7 166 -35 131 131 2009 JulAprSep Jun 1 021 -734 287 -109 -45 -6 48 -38 137 0 -3 -3 134 -35 100 100 1 035 -766 269 -119 -52 -6 24 -8 108 0 -14 -14 94 -26 68 68 JanMar 1 007 -755 252 -126 -45 -6 27 -32 70 1 -21 -20 50 -13 37 37 OctDec 1 145 -848 297 -119 -51 -6 14 -69 66 3 -30 -27 39 -3 36 6 42 2008 JulAprSep Jun 973 -715 258 -104 -47 -5 7 -26 83 2 -14 -12 72 -19 53 53 1 012 -752 260 -118 -54 -7 18 -9 90 1 -18 -17 73 -16 57 57 JanMar 969 -705 264 -125 -46 -5 18 -20 86 1 -20 -19 67 -22 45 45 ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 112010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=12http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=12Consolidated Balance Sheets in brief SEK m ASSETS Goodwill Other intangible fixed assets Tangible fixed assets Financial fixed assets Total fixed assets Inventories Accounts receivable Other operating receivables Cash and cash equivalents Total current assets TOTAL ASSETS 31 December 2009 1 199 29 510 336 2 074 382 640 163 230 1 415 3 489 31 December 2008 1 199 25 514 369 2 107 542 731 182 249 1 704 3 811 SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Long-term loans Other long-term liabilities Total long-term liabilities Accounts payable Other short-term liabilities Total short-term liabilities TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 1 789 682 216 898 344 458 802 1 544 1 151 229 1 380 358 529 887 3 489 3 811 ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 122010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=13http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=13Change in the Group’s shareholders' equity Attributable to equity holders of the parent company Share capital SEK m Opening balance 1 January 2008 Sum of comprehensive income of the period Dividend paid to shareholders Closing balance 31 December 2008 Sum of comprehensive income of the period Dividend paid to shareholders Closing balance 31 December 2009 59 59 59 1 681 1 681 1 681 26 16 42 -6 36 Other injected capital Reserves Fair value 1) reserve 13 13 13 Loss carried forward incl. net income for the period -363 197 -85 -251 336 -85 0 TOTAL EQUITY 1 416 213 -85 1 544 330 -85 1 789 1) Fair value reserve means a reappraisal of land in accordance with earlier accounting principles. The reappraised value is adopted as the acquisition value in accordance with the transition rules in IFRS 1. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 132010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=14http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=14Consolidated Cash Flow Statement SEK m Current operation Operating income, continuing operations Operating income, discontinued operations Adjustment for items not included in cash flow etc Paid interest and tax Change in working capital Cash flow from operations Investments Acquisition of fixed assets Sales of fixed assets Change in interest-bearing receivables Cash flow from investments Financing Taken up loans1) Amortization of debt1) Dividend paid Change in borrowing Cash flow from financing Cash flow from the period Liquid funds, opening balance Exchange difference, cash and cash equivalents Cash and cash equivalents, closing balance 1) 1 January31 December 2009 1 January31 December 2008 488 -12 -114 264 626 326 6 159 -142 -75 274 -125 4 -9 -130 -145 6 0 -139 1 365 -1 756 -85 -36 -512 -16 249 -3 230 302 -300 -85 -13 -96 38 202 9 249 Loans and amortizations, within the credit facility, are reported gross for duration above 3 months according to IAS 7. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 142010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=15http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=15Key ratios in brief 1 January31 December 2009 4 220 1 166 436 539 631 1 906 3.0% 27.6% 10.3% 12.8% 20.8% 35.3% 1,17 1 January31 December 2008 4 099 1 079 414 511 1 100 1 952 2.9% 26.3% 10.1% 12.5% 18.2% 71.2% 2,15 Net Sales, SEK m Gross Profit, SEK m EBIT1), SEK m EBITDA1), SEK m Net debt Number of Employees Sales growth, % Gross margin, % EBIT1) margin, % EBITDA1) margin, % Return on capital employed1) Net debt/equity ratio Net debt/EBITDA1) 1) Calculated based on underlying operating income. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 152010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=16http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=16Parent Company Income Statements in brief SEK m (Note 1) Net Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Research and development expenses Other operating incomes Other operating expenses Operating income Revenue from participations in Group companies Other interest revenue and similar income Interest expenses and similar expenses Net financial items Income after financial items Appropriations Taxes on income for the period Net income for the period 12 months JanuaryDecember 2009 1 180 -1 059 121 -116 -138 -13 315 -212 -43 547 30 -35 543 500 -13 487 12 months JanuaryDecember 2008 1 244 -1 104 140 -121 -149 -12 224 -225 -143 351 42 -69 324 181 3 184 3 months OctoberDecember 2009 336 -292 44 -34 -34 -4 59 -38 -7 6 -1 5 -2 -5 -7 3 months OctoberDecember 2008 333 -294 39 -26 -43 -3 66 -94 -60 62 40 -59 43 -17 0 -18 ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 162010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=17http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=17Parent Company Balance Sheets in Brief SEK m ASSETS Goodwill Other intangible fixed assets Total intangible fixed assets Tangible fixed assets Financial fixed assets Total fixed assets Inventories Accounts receivable Other operating receivables Cash and bank Total current assets TOTAL ASSETS 31 December 2009 699 29 728 67 1 070 1 865 86 104 843 179 1 212 3 077 31 December 2008 799 25 824 69 1 071 1 964 106 126 823 153 1 208 3 172 SHAREHOLDERS’ EQUITY AND LIABILITIES Total restricted shareholders equity Total unrestricted shareholders equity Shareholders’ equity1) Provisions Long-term financial liabilities2) Total long-term liabilities Accounts payable Other short-term liabilities2) Total short-term liabilities TOTAL SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES 1) 83 1 868 1 951 113 668 668 73 272 345 83 1 398 1 481 115 1 145 1 145 71 360 431 3 077 3 172 2) Shareholders' equity also includes Group contributions received from Rexcell Tissue & Airlaid AB. Reclassification of internal liabilities has occurred from long-term to short-term liabilities which differ from prior reporting. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 172010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=18http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=18Definitions Cost of goods sold: Cost of goods sold including production and logistic costs. Gross margin: Gross profit as a percentage of net sales. EBIT: Operating income. EBIT margin: EBIT as a percentage of net sales. EBITA: Operating income adjusted for impairment of fixed assets. EBITA margin: EBITA as a percentage of net sales. EBITDA: Operating income before depreciation and impairment of fixed assets. EBITDA margin: EBITDA as a percentage of net sales. Capital employed: Non-interest bearing fixed assets and current assets, excluding deferred tax assets, less non-interest bearing liabilities. Return on capital employed: Operating income as a percentage of capital employed. Return on shareholders’ equity: Net income as a percentage of shareholders’ equity. Number of employees: The number of employees at end of period. Currency adjusted: Figures adjusted for changes in exchange rates. Figures for 2009 are calculated at exchange rates for 2008. Earnings per share: Net income divided by the average number of shares. Net Interest-bearing debt: Interest-bearing liabilities and pensions less cash and cash equivalents and interest-bearing receivables. HoReCa: Abbreviation for hotels, restaurants and catering. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 182010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=19http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=19Notes Note 1 • Accounting and valuation principles Since January 1, 2005, Duni applies International Financial Reporting Standards (IFRS) as adopted by the European Union. For transition effects see notes 45 and 46 in the Annual Report of 30 June 2007. This interim report has been prepared in accordance with IAS 34, Interim Reporting. The consolidated financial statements have been prepared in accordance with IFRS as adopted by the EU and with the related reference to Chapter 9 of the Annual Accounts Act. The parent company’s financial statements are prepared in accordance with RFR 2.2, Reporting for Legal Entities, and the Annual Accounts Act. The accounting principles are the same as in the Annual Report as per 31 December 2008, with the exception of the following changes. Changed accounting principles – the Group ¬ Presentation of Financial Statements Commencing 1 January 2009, the Group has implemented the changes to IFRS 1 Presentation of Financial Statements. The standard divides up changes in shareholders’ equity as a consequence of transactions with equity holders and other changes. The presentation of changes in shareholders’ equity is changed to contain only details regarding transactions with equity holders. Changes in shareholders’ equity other than those arising from transactions with equity holders must be presented on one line in the presentation of changes in shareholders’ equity. In addition, the standard introduces the concept of "Statement of comprehensive income for the Group" which also shows income and expenses as reported in shareholders’ equity. Duni has chosen to report in two presentations: an income statement and a statement of comprehensive income. Comparison information for 2008 has been adapted in accordance with the new standard. ¬ Operating Segments Commencing 1 January 2009, the Group has implemented IFRS 8 Operating Segments. IFRS 8 replaces IAS 14 Segment Reporting. The new standard requires that segment information be presented based on the management's perspective, entailing that it is presented in the manner used in the internal reporting. The implementation of IFRS 8 has not resulted in any new operating segments being identified in Duni compared with previously. The starting point for identification of reportable segments is the internal reporting as reported to, and followed up by, the chief operating decision-maker, which in this context has been identified as group management. The business operations are evaluated and governed based on lines of business. Duni has identified three reportable operating segments in accordance with IFRS 8. These are: Professional, Retail and Tissue. These are the same as reported in previous years and the information is thus comparable to the segment information of previous years. Segments are evaluated internally based on operating income excluding non-recurring items. Since the reportable segments are unchanged compared with previous years, the new standard does not entail any re-allocation of goodwill. Note 2 • Net interest bearing debt Commencing the fourth quarter of 2008, the interest-bearing debt is calculated excluding the effect of electricity- and currency derivatives. Note 3 • Divested business The American businesses, Duni Corporation and Duni Supply Corporation, were sold in August 2006. The final capital gain from the sale was SEK 131 m. ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 192010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=20http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=20Note 4 • Segment reporting January-December 2009-01-01 – 2009-12-31 Total net sales Net sales from other segments Net sales from external customers Underlying operating income Non-recurring items Net financial items Income after financial items Professional 2 885 0 2 885 402 Retail 792 792 18 Tissue 1 027 484 543 16 Group’s Total 4 705 484 4 220 436 52 -43 444 Group’s Total 4 614 515 4 099 414 -89 -75 251 2008-01-01 – 2008-12-31 Total net sales Net sales from other segments Net sales from external customers Underlying operating income Non-recurring items Net financial items Income after financial items Professional 2 771 2 771 368 - Retail 777 777 11 - Tissue 1 066 515 551 35 - Quarter 4 2009-10-01 – 2009-12-31 Total net sales Net sales from other segments Net sales from external customers Underlying operating income Non-recurring items Net financial items Income after financial items Professional 766 766 137 Retail 257 257 26 Tissue 246 112 134 4 Group’s Total 1 269 112 1 157 167 6 -7 166 Group’s Total 1 280 136 1 145 145 -80 -27 39 2008-10-01 – 2008-12-31 Total net sales Net sales from other segments Net sales from external customers Underlying operating income Non-recurring items Net financial items Income after financial items Professional 753 753 122 - Retail 261 261 21 - Tissue 266 136 131 2 - ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 202010-04-09T15:06:04+02:00http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=21http://basilicon.ipapercms.dk/DUNI/AnnualReportEn/?Page=21Inventory has decreased in all segments since year-end. No other material changes have taken place in the segments’ assets compared with the annual report dated 31 December 2008. Note 5 • Non-recurring items Duni considers restructuring cost and unrealized valuation effects on derivative instruments, due to nonapplication of hedge accounting, as non-recurring items. Presented below is a specification of the lines on which these items are included in the consolidated income statement. Restructuring cost SEK m Cost of goods sold Selling expenses Administrative expenses Other operating expenses Total 12 months JanuaryDecember 2009 -1 -1 -2 12 months JanuaryDecember 2008 -21 -6 -4 -10 -41 3 months OctoberDecember 2009 1 -1 0 3 months OctoberDecember 2008 -21 -6 -4 -10 -41 Derivative instruments 12 months JanuaryDecember 2009 57 -3 54 12 months JanuaryDecember 2008 1 -49 -48 3 months OctoberDecember 2009 9 -3 6 3 months OctoberDecember 2008 -15 -24 -39 SEK m Other operating incomes Other operating expenses Total ______________________________________________________________________________________________________________________________________ Duni AB (publ) • Box 237 • 201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 40 10 62 00 • Fax +46 40 39 66 30 www.duni.com • Registration no: 556536-7488 212010-04-09T15:06:04+02:00