Sustainable views

Annual Report 2016

NEW ACQUISITION IN ASIA AND SEVERAL ECOECHO® LAUNCHES

The rate of growth follows the market in general and is in line with last year. Net sales in comparable currency increased by 2.0% to SEK 4,271 (4,200) m.

Earnings per share after dilution amounted to SEK 7.06 (7.37). The Board of Directors proposes a dividend of SEK 5.00 (5.00) per share.

A SUSTAINABLE APPROACH…

In 2016, Duni continued to take important initiatives for creating growth, attractiveness and efficiency. The acquisition of a 60% stake in the Thai napkin manufacturer Terinex Siam strengthened the Group’s presence on growing markets in Southeast Asia. The investment in our tissue machinery at the Rexcell subsidiary resulted in increased capacity and improved resource utilization in the production process. Work within corporate social responsibility has continued, and is reflected amongst other things in an expanded offering of environmentally profiled products and updated long-term sustainability targets. Duni has strengthened its position as a leading supplier of table top and meal time products towards an increasingly environmentally conscious customer group. Duni’s net sales increased to SEK 4.3 billion, with a profit margin of 11.8%. Organic growth amounted to 1.2%.

… LAYS THE FOUNDATIONS FOR THE FUTURE

The measures taken in 2016 are preparing the way for further growth, within and outside Europe. The companies acquired in Asia in recent years are creating a solid base for winning new business on several markets. Clearer customer segmentation and closer contact with end customers are resulting in better-targeted offerings. In order to further enhance the mealtime experience, we are continuously focusing on creating attractive designs. Duni’s CSR work, which is conducted through Our Blue Mission program, clarifies the processes within key areas such as materials production, product safety, social responsibility and business ethics. Taken together, the activities will lead to an even stronger brand and a clear experience of Goodfoodmood®.

CEO’S COMMENTS

A STRONGER AND MORE SUSTAINABLE DUNI

“In 2016, Duni took important initiatives within the prioritized areas of growth, attractiveness and efficiency. A significant acquisition in Southeast Asia strengthens the Group’s position on growth markets outside Europe. Investments in increasing capacity at the Rexcell paper mill and implementing methods to understand customer needs in an improved manner, are also creating value both in the short and long-term.”

Net sales increased to SEK 4,271 (4,200) m

502

Operating income amounted to SEK 502 (528) m

11.8

Operating margin of 11.8 (12.6) percent

Key ratios, SEK m ^{1), 2)}

	2016	2015	2014	2013	2012
Net sales	4 271	4 200	3 870	3 349	3 268
Operating income*	502	528	452	369	355
EBITDA*	632	656	572	473	454
Net income before tax	441	459	414	334	218
Net income for the year	334	346	302	254	137
Proposed dividend, SEK/Share	5.00	5.00	4.50	4.00	3.50
Total equity	2 486	2 345	2 193	2 099	2 051
Return on equity, %	13.4	14.8	13.8	12.1	6.7
Return on capital employed, %	15.8	18.6	15.4	13.3	14.4
Number of employees	2 279	2 082	2 092	1 902	1 875

* Operating income and EBITDA are adjusted for non-recurring items. Comparison figures for 2012 are translated in accordance with new accounting principles.

¹⁾ Relates to continuing operations for all periods. The discontinued hygiene products business has been recalculated and, in accordance with IFRS, is reported on a line after the net income for the period for continuing operations.

²⁾ Key ratios for 2016 include non-controlling interests.

Net sales and operating income, SEK m

Net sales per business area

Net sales per geographic region