Year-End Report for Duni AB (publ) 1 January – 31 December 2015

Stable earnings and strong balance sheet
1 October – 31 December 2015

  · Net sales amounted to SEK 1,170 m (1,134). Adjusted for exchange rate
changes, net sales increased by 1.0%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 2.32 (2.23).
  · The operating margin continues to strengthen, reaching 14.6% (14.5%) in the
quarter.
  · Stable core business with expanding Meal Service.

1 January – 31 December 2015

  · Net sales amounted to SEK 4,200 m (3,870). Adjusted for exchange rate
changes, net sales increased by 4.4%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 7.37 (6.42).
  · Cash flow remains strong and net debt decreased significantly in 2015.
  · Decision to invest SEK 110 m in upgrading two of the paper machines in
Skåpafors in order to increase capacity.
  · Hygiene production in Skåpafors has now been closed down and the hygiene
business, as well as the restructuring work within the business area Materials &
Services, are reported as discontinued operations.
  · The Board proposes a dividend of SEK 5.00 (4.50) per share.

CEO’s comments

“Sales increased during the fourth quarter, albeit at a slower pace than seen in
the preceding quarters. Sales in the quarter for Table Top and Consumer were
affected by a weaker trend in Central Europe and the Nordic region together
with, among other things, lower Christmas sales. At the same time, Meal Service
benefited from the stable demand we are witnessing in the rest of Europe and in
the take-away and catering segment. Sales for the period in the continuing
operations amounted to SEK 1,170 m (1,134) and operating income was SEK 171 m
(164). The operating margin continues to strengthen, reaching 14.6% (14.5%)
during the quarter.

For the financial year as a whole, sales in the continuing operations increased
by 8.5%, to SEK 4,200 m (3,870). Adjusted for exchange rate changes, sales
increased by 4.4%. Operating income increased to SEK 528 m (452) and the
operating margin strengthened to 12.6% (11.7%). In addition, the balance sheet
was strengthened and net debt relative to income before
amortization/depreciation is once again at the same level as at the end of 2013,
i.e. prior to the acquisition of Paper+Design.

The part of the Rexcell restructuring program involving concentration of
continuing production at the mill in Skåpafors was completed during the quarter.
Production in Dals Långed was discontinued in October, and the plant was placed
in mothballs. Despite a high level of activity, the restructuring has been
implemented without any significant impact on the day-to-day operations.
Installation work at the paper mill, with the previously announced investment to
increase capacity, is proceeding according to plan and is expected to be
completed during the latter part of 2016.

The Table Top business area increased its sales in the quarter by 1%, due
entirely to positive currency effects. The growth we witnessed in western and
southern Europe could not fully compensate for somewhat weaker sales in Central
Europe and the Nordic region. Growth regeneration in Central Europe and the
Nordic region has top priority and, accordingly, a change in the business area’s
management was carried out during the quarter. Table Top’s sales in the quarter
increased to SEK 612 m (604), but operating income weakened to SEK 118 m (126).

The Meal Service business area is continuing to develop strongly; the business
area reaches a growth of almost 13% in the quarter. Continued high market demand
in our prioritized segments, and successful product launchings, are
strengthening our position as an innovative player. Sales amounted to SEK 162 m
(144) and operating income increased to SEK 8 m (6).

The Consumer business area increased its sales by 2.4% during the quarter and
similar to Table Top, growth was generated by positive currency effects.
Paper+Design, which was acquired in 2014, had a strong quarter in terms of
sales, whereas sales in Norway were adversely affected by the loss of a major
customer and by weaker demand in Central Europe. Sales in the quarter amounted
to SEK 330 m (322) and operating income increased to SEK 40 m (32).

The New Markets business area experiences a positive trend, with the exception
of Russia where demand continues to shrink. Southeast Asia grew during the
quarter and we experienced continued strong growth on our other export markets.
Sales in the quarter amounted to SEK 52 m (54) and operating income increased to
SEK 4 m (0).

Our operating income for the year as a whole increased by 17%, at the same time
as a number of important structural projects were successfully concluded. We
have continued to invest in delivery service and our customer satisfaction rate
increased during the year. All things considered, we are convinced that we can
look forward to an exciting and successful 2016,” says Thomas Gustafsson,
President and CEO, Duni.
Additional information is provided by:
Thomas Gustafsson, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Tina Andersson, Corporate Marketing & Communication Director, +46 734 19 62 24
Duni is a leading supplier of attractive and convenient products for table
setting and take-away. The Duni brand is sold in more than 40 markets and enjoys
a number one position in Central and Northern Europe. Duni has some 2,100
employees in 18 countries, headquarters in Malmö and production units in Sweden,
Germany and Poland. Duni is listed on NASDAQ Stockholm under the ticker name
“DUNI”. ISIN-code is SE 0000616716.