Interim 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 January December	12 months January December	3 months October December	3 months October December
	2009	2008	2009	2008
Net sales, SEK m	4 220	4 099	1 157	1 145
Operating income1), SEK m	436	414	167	145
Operating margin1), %	10.3%	10.1%	14.4%	12.7%
Income after financial items, SEK m	444	251	166	39
Net income2), SEK m	336	191	131	36

1) 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.

2) 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.

Sales 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

increased 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.

Non-recurring items	12 months January December	12 months January December	3 months October December	3 months October December
SEK m	2009	2008	2009	2008
Underlying operating income	436	414	167	145
Unrealized value changes, derivative instruments	54	-48	6	-39
Restructuring costs	-2	-41	0	-41
Reported operating income	488	326	173	66

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.

Split between business areas

The 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	12 months January December 2009	12 months January December 2008	Change	3 months October December 2009	3 months October December 2008	Change
Nordic region	639	664	-3.8%	177	178	-0.6%
Central Europe	1 755	1 616	8.6%	464	444	4.5%
Southern & Eastern Europe	467	469	-0.4%	118	124	-4.8%
Rest of the World	24	22	9.1%	7	7	0.0%
Total	2 885	2 771	4.1%	766	753	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.

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%).

Retail business area

	12 months January December	12 months January December		3 months October December	3 months October December
Net Sales – Retail, SEK m	2009	2008	Change	2009	2008	Change
Nordic region	116	148	-21.6%	39	44	-11.4%
Central Europe	643	610	5.4%	200	209	-4.3%
Southern & Eastern Europe	32	19	68.4%	19	9	111.1%
Rest of the World	2	0	200%	0	0	0.0%
Total	792	777	1.9%	257	261	-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.

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.

Net sales were SEK 134 m (131) for the period 1 October – 31 December. Operating income amounted to SEK 4 m (2) and the operating margin improved from 1.3% to 3.1% compared with the same period of last year. The stabilization of volumes which was

Sales - Geographical split, Retail

In 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.

Acquisitions

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.

Interim reports

Quarter I	29 April 2010
Quarter II	16 July 2010
Quarter III	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 [email protected] or [email protected] 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.

Accounting 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

Consolidated Income Statements

	12 months January December	12 months January December	3 months October- December	3 months October- December
SEK m (Note 1,5)	2009	2008	2009	2008
Net Sales	4 220	4 099	1 157	1 145
Cost of goods sold	-3 054	-3 020	-800	-848
Gross profit	1 166	1 079	357	297
Selling expenses	-482	-465	-128	-119
Administrative expenses	-184	-198	-43	-51
Research and development expenses	-29	-23	-10	-6
Other operating incomes	107	57	9	14
Other operating expenses	-90	-124	-12	-69
Operating income (Note 4)	488	326	173	66
Financial income	2	8	0	3
Financial expenses, etc.	-45	-83	-7	-30
Net financial items	-43	-75	-7	-27
Income after financial items	444	251	166	39
Income tax	-108	-60	-35	-3
Net income, continuing operations	336	191	131	36
Net income, discontinued operations (Note 3)	-	6	-	6
Net Income	336	197	131	42
Income attributable to:
Equity holders of the Parent Company	336	197	131	42
Earnings per share, continuing operations, SEK
Before and after dilution	7.15	4.06	2.79	0.76
Average number of shares before and after dilution (´000)	46 999	46 999	46 999	46 999
Earnings per share, discontinued operations, SEK
Before and after dilution	-	0.13	-	0.13
Average number of shares before and after dilution (´000)	46 999	46 999	46 999	46 999
Earnings per share, attributable to equity holders of the Parent Company, SEK
Before and after dilution	7.15	4.19	2.79	0.89
Average number of shares before and after dilution (´000)	46 999	46 999	46 999	46 999

Statement of comprehensive income

	12 months	12 months	3 months	3 months
	January	January	October-	October-
	December	December	December	December
	2009	2008	2009	2008
Net income of the period	336	197	131	42
Comprehensive income
Exchange rate differences - translation of subsidiaries	-6	16	0	18
Comprehensive income of the period	-6	16	131	18

Sum of comprehensive income of the period	330	213	131	60
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

		2009					2008
Quarter	Oct Dec	Jul Sep	Apr Jun	Jan Mar	Oct Dec	Jul Sep	Apr Jun	Jan Mar

Net Sales	1 157	1 021	1 035	1 007	1 145	973	1 012	969
Cost of goods sold	-800	-734	-766	-755	-848	-715	-752	-705
Gross profit	357	287	269	252	297	258	260	264
Selling expenses	-128	-109	-119	-126	-119	-104	-118	-125
Administrative expenses	-43	-45	-52	-45	-51	-47	-54	-46
Research and development expenses	-10	-6	-6	-6	-6	-5	-7	-5
Other operating incomes	9	48	24	27	14	7	18	18
Other operating expenses	-12	-38	-8	-32	-69	-26	-9	-20
Operating income	173	137	108	70	66	83	90	86

Financial income	0	0	0	1	3	2	1	1
Financial expenses etc.	-7	-3	-14	-21	-30	-14	-18	-20
Net financial items	-7	-3	-14	-20	-27	-12	-17	-19

Income after financial items	166	134	94	50	39	72	73	67
Income tax	-35	-35	-26	-13	-3	-19	-16	-22

Net income, continuing operations	131	100	68	37	36	53	57	45
Net income, discontinued operations	-	-	-	-	6	-	-	-
Net Income	131	100	68	37	42	53	57	45

Consolidated Balance Sheets in brief

	31 December	31 December
SEK m	2009	2008
ASSETS
Goodwill	1 199	1 199
Other intangible fixed assets	29	25
Tangible fixed assets	510	514
Financial fixed assets	336	369
Total fixed assets	2 074	2 107

Inventories	382	542
Accounts receivable	640	731
Other operating receivables	163	182
Cash and cash equivalents	230	249
Total current assets	1 415	1 704

TOTAL ASSETS	3 489	3 811


SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	1 789	1 544

Long-term loans	682	1 151
Other long-term liabilities	216	229
Total long-term liabilities	898	1 380

Accounts payable	344	358
Other short-term liabilities	458	529
Total short-term liabilities	802	887

TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES	3 489	3 811

Change in the Group's shareholders' equity

	Attributable to equity holders of the parent company
SEK m	Share capital	Other injected capital	Reserves	Fair value reserve1)	Loss carried forward incl. net income for the period	TOTAL EQUITY
Opening balance 1 January 2008	59	1 681	26	13	-363	1 416
Sum of comprehensive income of the period	-	-	16	-	197	213
Dividend paid to shareholders	-	-	-	-	-85	-85
Closing balance 31 December 2008	59	1 681	42	13	-251	1 544
Sum of comprehensive income of the period	-	-	-6	-	336	330
Dividend paid to shareholders	-	-	-	-	-85	-85
Closing balance 31 December 2009	59	1 681	36	13	0	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.

Consolidated Cash Flow Statement

	1 January	1 January
	31 December	31 December
SEK m	2009	2008
Current operation
Operating income, continuing operations	488	326
Operating income, discontinued operations	-	6
Adjustment for items not included in cash flow etc	-12	159
Paid interest and tax	-114	-142
Change in working capital	264	-75
Cash flow from operations	626	274

Investments
Acquisition of fixed assets	-125	-145
Sales of fixed assets	4	6
Change in interest-bearing receivables	-9	0
Cash flow from investments	-130	-139

Financing
Taken up loans1)	1 365	302
Amortization of debt1)	-1 756	-300
Dividend paid	-85	-85
Change in borrowing	-36	-13
Cash flow from financing	-512	-96

Cash flow from the period	-16	38
Liquid funds, opening balance	249	202
Exchange difference, cash and cash equivalents	-3	9
Cash and cash equivalents, closing balance	230	249

1) Loans and amortizations, within the credit facility, are reported gross for duration above 3 months according to IAS 7.

Key ratios in brief

	1 January-	1 January
	31 December	31 December
	2009	2008
Net Sales, SEK m	4 220	4 099
Gross Profit, SEK m	1 166	1 079
EBIT1), SEK m	436	414
EBITDA1), SEK m	539	511
Net debt	631	1 100
Number of Employees	1 906	1 952

Sales growth, %	3.0%	2.9%
Gross margin, %	27.6%	26.3%
EBIT1) margin, %	10.3%	10.1%
EBITDA1) margin, %	12.8%	12.5%

Return on capital employed1)	20.8%	18.2%
Net debt/equity ratio	35.3%	71.2%
Net debt/EBITDA1)	1,17	2,15

1) Calculated based on underlying operating income.

Parent Company Income Statements in brief

	12 months	12 months	3 months	3 months
	January-	January-	October-	October-
SEK m	December	December	December	December
(Note 1)	2009	2008	2009	2008
Net Sales	1 180	1 244	336	333
Cost of goods sold	-1 059	-1 104	-292	-294
Gross profit	121	140	44	39

Selling expenses	-116	-121	-34	-26
Administrative expenses	-138	-149	-34	-43
Research and development expenses	-13	-12	-4	-3
Other operating incomes	315	224	59	66
Other operating expenses	-212	-225	-38	-94
Operating income	-43	-143	-7	-60

Revenue from participations in Group
companies	547	351	-	62
Other interest revenue and similar income	30	42	6	40
Interest expenses and similar expenses	-35	-69	-1	-59
Net financial items	543	324	5	43

Income after financial items	500	181	-2	-17

Appropriations	-	-	-	-
Taxes on income for the period	-13	3	-5	0
Net income for the period	487	184	-7	-18

Parent Company Balance Sheets in Brief

	31 December	31 December
SEK m	2009	2008
ASSETS
Goodwill	699	799
Other intangible fixed assets	29	25
Total intangible fixed assets	728	824

Tangible fixed assets	67	69
Financial fixed assets	1 070	1 071
Total fixed assets	1 865	1 964
Inventories	86	106
Accounts receivable	104	126
Other operating receivables	843	823
Cash and bank	179	153
Total current assets	1 212	1 208

TOTAL ASSETS	3 077	3 172


SHAREHOLDERS' EQUITY AND LIABILITIES
Total restricted shareholders equity	83	83
Total unrestricted shareholders equity	1 868	1 398
Shareholders' equity1)	1 951	1 481

Provisions	113	115

Long-term financial liabilities2)	668	1 145
Total long-term liabilities	668	1 145

Accounts payable	73	71
Other short-term liabilities2)	272	360
Total short-term liabilities	345	431

TOTAL SHAREHOLDERS' EQUITY, PROVISIONS
AND LIABILITIES	3 077	3 172

1) Shareholders' equity also includes Group contributions received from Rexcell Tissue & Airlaid AB.

2) Reclassification of internal liabilities has occurred from long-term to short-term liabilities which differ from prior reporting.

Definitions

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.

Notes

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.

Note 4 • Segment reporting

January-December

2009-01-01 – 2009-12-31	Professional	Retail	Tissue	Group's Total
Total net sales	2 885	792	1 027	4 705
Net sales from other segments	0	-	484	484
Net sales from external customers	2 885	792	543	4 220
Underlying operating income	402	18	16	436
Non-recurring items	-	-	-	52
Net financial items	-	-	-	-43
Income after financial items	-	-	-	444

2008-01-01 – 2008-12-31	Professional	Retail	Tissue	Group's Total
Total net sales	2 771	777	1 066	4 614
Net sales from other segments	-	-	515	515
Net sales from external customers	2 771	777	551	4 099
Underlying operating income	368	11	35	414
Non-recurring items	-	-	-	-89
Net financial items	-	-	-	-75
Income after financial items	-	-	-	251

Quarter 4

2009-10-01 – 2009-12-31	Professional	Retail	Tissue	Group's Total
Total net sales	766	257	246	1 269
Net sales from other segments	-	-	112	112
Net sales from external customers	766	257	134	1 157
Underlying operating income	137	26	4	167
Non-recurring items	-	-	-	6
Net financial items	-	-	-	-7
Income after financial items	-	-	-	166

2008-10-01 – 2008-12-31	Professional	Retail	Tissue	Group's Total
Total net sales	753	261	266	1 280
Net sales from other segments	-	-	136	136
Net sales from external customers	753	261	131	1 145
Underlying operating income	122	21	2	145
Non-recurring items	-	-	-	-80
Net financial items	-	-	-	-27
Income after financial items	-	-	-	39

Inventory 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	12 months	12 months	3 months	3 months
	January December	January December	October December	October December
SEK m	2009	2008	2009	2008
Cost of goods sold	-1	-21	1	-21
Selling expenses	-1	-6	-1	-6
Administrative expenses	-	-4	-	-4
Other operating expenses	-	-10	-	-10
Total	-2	-41	0	-41

Derivative instruments
	12 months	12 months	3 months	3 months
	January	January	October	October
	December	December	December	December
SEK m	2009	2008	2009	2008
Other operating incomes	57	1	9	-15
Other operating expenses	-3	-49	-3	-24
Total	54	-48	6	-39