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Duni Presentation Aktiespararna Halmstad 2008-11-26

www.duni.com

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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.

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 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

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“Duni enhances atmosphere

and brings convenience to any

eating and drinking occasion

by providing inspiring and

innovative products and

concepts”

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Contents

Market overview Business areas

¬ Professional¬ Retail¬ Tissue

Financials

55

Table TopTissue

14%Professional68%

Retail18%

Duni – the European Market Leader for Table Top Solutions

Key financialsKey financials

Full year 2007

∙ Sales: SEK 4.0 billion (+5.9%)

∙ EBIT: SEK 394 million (277)

∙ EBIT margin: 9.9% (8.7%) ¹

Jan – Sep 2008

∙ Sales: SEK 3.0 billion (+3.3%)

∙ EBIT: SEK 260 million (248)

∙ EBIT margin: 8.8% (8.7%)

Man

ufa

ctu

red

Tra

ded

Napkins Plates Table coverings

Eating & Drinking (glasses, cups, plates, cutlery)

Candles Meal service

¹ Excluding non-recurring items

DuniDuni

6

Share Price and Ownership Structure

Ownership structure per 30/09/08

Duni OMX Mid Cap

”Sällanköps- varor” Index

Share price

Name Shares %Mellby Gård Investerings AB 14 094 500 29,99%PolarisCapital Fund Ltd, USA 4 276 800 9,10%Lannebo Fonder 3 619 300 7,70%SEB Investment Management, SE 3 590 287 7,64%Cominvest, DE 2 403 300 5,11%Livförsäkringsaktiebolaget (Skandia Liv), SE 2 171 200 4,62%Odin Fonder 2 074 800 4,41%JP Morgan Chase Bank, UK 1 509 400 3,21%Svenskt Näringsliv, SE 1 400 000 2,98%SSB CL Omnibus AC, USA 1 371 700 2,92%

Total 36 511 287 77,69%

777

Attractive and Large Addressable Market

Source: B Kay tissue, Duni management

Table covers6%

Food packaging21%

Eating and drinking supplements

10%

Napkins30%

Candles33%

Feminine hygiene64%

Table top14%

Hygiene wipes10%

Other12%

• Addressable market of EUR 4 bn

• ~2/3 of market is in the professional customer segment

• Addressable market of EUR 4 bn

• ~2/3 of market is in the professional customer segment

• Addressable market of approx. EUR 0.4 bn (production value)

• Largest part of feminine hygiene is premium quality

• Addressable market of approx. EUR 0.4 bn (production value)

• Largest part of feminine hygiene is premium quality

European disposable table top marketEuropean disposable table top market European airlaid marketEuropean airlaid market

Focus areas for Duni

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#1 in European Table Top#1 in European Table Top Premium positioningPremium positioning

The European Market Leader – Above 2x Relative Market Share

1) The linen market is characterized by a large number of small and regional players

Source: Company reports and management estimates

Market shares 19% 8% 8% 8% 5% 4% 3%

Narrow Wide

Co

mm

od

ity

Pre

miu

mL

inen

1)

Product range/ concepts

Tis

sueb

ased

pro

du

cts

Duni

GP

PapstarKarto

SCA

KC

Metsä

0

50

100

150

200

250

300

Duni Georgia

Pacific

Karto-

group

SCA Kimberly

Clark

Papstar Metsä

Tissue

- 200

6 tis

sue

tabl

e to

p sa

les

(ME

UR

)

9

Market Outlook

HORECA market growing in line or slightly above GDP• Positive eating-out trend• Continued strong growth in take-away sector

Retail growth in line with GDP• Private label over-represented in our category• Discount stores and private label more in focus in a

weaker economy

Higher uncertainty• GDP forecasts revised downwards

Raw material prices and costs of certain traded goods may have peaked

• Energy• Transport• Pulp (USD/SEK)

Changing eating habits

10Source: BROG Media Biznes

Eating Out Trend

5 5

35

50

0

10

20

30

40

50

%

Poland Czech Germany USA

Food spending outside home (as a percentage of whole food budget)

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Business Areas

1212

Professional – Stable Development

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 20070%

2%

4%

6%

8%

10%

12%

14%

Sales EBIT margin

MSEK

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

Sales and EBIT 1Sales and EBIT 1

LTM

Continued stable sales growth

• 4% annual growth since 2000

Solid EBIT margin, further improving

Continued stable sales growth

• 4% annual growth since 2000

Solid EBIT margin, further improving

Geographical split – sales 2007Geographical split – sales 2007

Nordic25%

Central58%

South & East 16%

Other1%

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Professional - Unique Way to Market

End Customers

Direct Sales

Wholesalers

Cash & carry

Duni Sales ForceContinuous contacts, sampling promotions and

other educational and marketing support

Feedback on trends, market sentiment, etc.

Product innovation, feedback on

product portfolio

Flexibility towards customers, ability

to react fast to changing demand, customer loyalty

Barrier to entry towards

competitors

Duni Professional’s market modelDuni Professional’s market model Benefits of market modelBenefits of market model

∙ ~250 sales reps and KAMs with approx. 250,000 customer visits per year

∙ Effectively acts as a barrier to entry

∙ Solidifies customer relations – push and pull

∙ Enables constant monitoring of market trends

• Closeness to market and customers are the key success factors• Closeness to market and customers are the key success factors

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Professional - Growing East

Ru

ssia

Cro

atia

Hu

ng

ary

Mac

edo

nia

Ukr

ain

e

Slo

vaki

a

Ser

bia

/ M

on

ten

egro

Cze

ch

Rep

ub

lic

Slo

ven

ia

Po

lan

d

Bu

lgar

ia

Bel

aru

s

Ro

man

ia

● ● ● ●

● ● ● ● ● ● ● ●

● ● ● ● ● ● ●

●

●

●

●

● ● ●

●

● ● ● ●

● ● ●

● ● ●

●● ● ● ●

● ● ●

●

●

●

● ●●

●

●

● Current Duni customer ● Potential customer

● ●

●

Customers are expanding East and Duni is growing with its customersCustomers are expanding East and Duni is growing with its customers

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Duni in Metro Germany

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Duni in Metro Germany

1717

Retail – Turnaround

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

600

650

700

750

800

850

900

2005 2006 2007

-0%

-6%

-4%

-2%

-0%

+2%

-+4%

-+6%

Sales EBIT margin

MSEK

Sales and EBIT 1Sales and EBIT 1

LTM

Improved profitability prioritized over sales

growth

Duni brand & premium in focus

Tougher market conditions

Improved profitability prioritized over sales

growth

Duni brand & premium in focus

Tougher market conditions

& SouthEast1%

Central78%

Nordic21%

Geographical split – sales 2007Geographical split – sales 2007

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Retail – Changing Market Trends

Branded:

Late 1990s

Private label:

Peak 2004/05

50/50

Brands are being re-introduced in retail stores

Non-food category is a key growth driver for retailers

Table top of particular importance

Leverage on Duni’s brand recognition

Private label development stagnating in Sweden: 17,1% value and 23,8% volume (Source:GfK 2007)

Today

Duni opportunityDuni opportunityThe Brand / private label pendulumThe Brand / private label pendulum

• Retailers moving from private label to branded and premium gives opportunity for Duni• Retailers moving from private label to branded and premium gives opportunity for Duni

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Category Management

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Tissue

Sales mix 2007Sales mix 2007

350

400

450

500

550

600

650

2005 2006 2007

0%

2%

4%

6%

8%

10%

12%

14%

Sales EBIT margin

MSEK

Sales and EBIT 1Sales and EBIT 1

LTM

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

Tissue in-house provides competitive advantage Healthy underlying growth in hygiene sector

Tissue in-house provides competitive advantage Healthy underlying growth in hygiene sector

External49%

Internal51%

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Financials

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2008 Q3 Highlights• Net sales increased with 0.7% to SEK 973 m

• Operating profit amounted to SEK 83 m (97)

• Includes market valuation of derivatives SEK -18 m (3) • Operating margin amounted to 8.5% (10.0%)

• Excluding market valuation of derivatives 10.5% (9.8%)

• Continued growth in Professional and improved underlying margins

- Good development in Central Europe- Healthy growth in Duni FoodSolutions

• Weaker sales development in Retail• Mainly UK and Nordics• Slight improvement of underlying profit margin

• Tissue sales and underlying margin stable

2323

Top-Line Growth in Professional

2006 20072007 9m

2008 9m

Professional 5.7% 6.3% 7.7% 5.1%

Retail -6.2% 4.2% 9.5% -3.0%

Tissue 4.5% 6.9% 6.5% 3.2%

Total 2.9% 5.9% 7.9% 3.3%

• Professional continue to demonstrate healthy development• Weak sales in Retail; stepping out of private label contracts and tougher market conditions• Transition towards new generation of products

LTM SalesLTM Sales Sales growthSales growth

3 850

3 900

3 950

4 000

4 050

4 100

Q4

Q1

Q2

Q3

850

900

950

1 000

1 050

1 100

1 150

Quarter Rolling 12 months

MSEK MSEK

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• Total margin impacted by market valuation of derivatives -9 MSEK (2)• Increased underlying profit in Professional and Retail, Tissue is stable.

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Underlying Margin Expansion

2006 2007²2007 9m²

2008 9m²

Professional 11.7% 12.9% 11.9% 12.2%

Retail -0.9% 0.6% -2.9% -1.9%

Tissue 8.5% 8.9% 8.5% 7.9%

Non-recurring/ derivatives

-1.3% 0.0% 0.1% -0.3%

Total 8.7%¹ 9.9% 8.6% 9.1%0

50

100

150

200

250

300

350

400

2005 2006 2007

0%

1%

2%

3%

4%

5%

6%

-7%

8%

9%

10%

Reported Non recurring items EBIT margin

MSEK

¹ Excluding non-recurring items

² Excluding market valuation of derivatives

Operating profit (MSEK)Operating profit (MSEK) Operating marginOperating margin

LTM

2525

Income Statement

2005 2006 2007 LTM

Net sales 3,656 3,762 3,985 4,078

Cost of goods sold -2,829 -2,812 -2,948 -2,980

Gross profit 827 950 1,037 1,098

Gross margin 22.6% 25.3% 26.0% 26.9%

Selling expenses

Adminstrative expenses

Research and development expenses

Other operating income

Other operating expenses

-510

-185

0

20

-33

-459

-219

-6

44

-33

-446

-208

-13

57

-33

-461

-209

-20

54

-58

Reported operating profit 119 277 394 404

Operating margin 3.3% 7.4% 9.9% 9.9%

Non-recurring items 131 50 0 0

Operating profit (excl. non recurring items)

250 327 394 404

Operating margin (excl. non recurring items)

6.8% 8.7% 9.9% 9.9%

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(SEK in millions) 30/09/2008 30/09/2008

Intangible assets 1,226 Shareholders’ equity 1,484

Tangible assets 456 Interest bearing debt 1,188

Financial fixed assets 375 Pension liabilities 205

Inventory 619 Other long term liabilities 19

Accounts receivable 700 Accounts payable 285

Other current receivables 180 Other current liabilities 468

Cash & cash equivalents 93

Total assets 3,649 Total equity and liabilities 3,649

ROCE 17% Net debt 1,311

ROCE (w/o goodwill) 33% Net debt / equity 88%

Net debt / EBITDA 2.6x

Balance Sheet

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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

Sales growth > 5%Sales growth > 5%

EBIT margin > 10%EBIT margin > 10%∙ Top-line growth – premium focus

∙ Improvements in manufacturing and sourcing

Dividend payout ratio 40+%

Dividend payout ratio 40+%

∙ Board target at least 40% of net profit

2.7%

-

9.9%

LTM

(2008)

2828

Duni – Summary

Focused – centered on the European professional segment, which has always been profitable

Unique business model – based on strong sales force that enables growth and premium pricing

Return driven – strong cash flow, organic growth and add-on opportunities create the potential for long-term shareholder returns