Duni — Interim / Quarterly Report 2011

Apr 28, 2011

Interim Report for Duni AB (publ) 1 January – 31 March 2011

(compared with the same period of the previous year)

28 April 2011

Increased market investments for growth

1 January – 31 March 2011

• Net sales amounted to SEK 867 m (960). Adjusted for exchange rate changes, net sales decreased by 3.1%.
• Earnings per share amounted, after dilution, to SEK 0.86 (1.09).
• Operating income has been affected by increased market investments.

Key financials

	3 months January ­ March	3 months January ­ March	12 months April ­ March	12 months January ­ December
SEK m	2011	2010	2010/2011	2010
Net sales	867	960	3 877	3 971
Operating income1)	67	77	425	435
Operating margin1)	7.8%	8.1%	10.9%	10.9%
Income after financial items	55	66	408	418
Net income	41	51	296	306

1) Underlying operating income; for link to reported operating income, see the section entitled "Non-recurring items".

CEO's comments

"The result for the first quarter fell slightly short of our objectives in terms of sales and profitability. Sales fell by almost 10% compared with last year, largely due to the stronger Swedish krona; however, sales were 3% lower also when measured at fixed exchange rates.

It is primarily the Tissue business area which has performed weakly, with lower deliveries to the hygiene products sector and weaker sales generally in the wake of the fire at one of the paper mills in June last year. Nevertheless, capacity utilization has been at a high level when internal deliveries are included. Earnings within Tissue have improved thanks to higher productivity combined with price increases.

The Retail business area has experienced weaker sales as a consequence of lower private label volumes. In addition, we lost certain volumes in the Nordic region and in Germany. On the other hand, we have successfully defended our market shares on the premium range and are witnessing a continued improvement in the product mix. All in all, we are largely maintaining profitability within Retail when measured at fixed exchange rates.

In our main area, Professional, sales increased by almost 3% at fixed exchange rates. Taking into consideration the price increases carried out last year, this means that volumes are largely unchanged. Even if we see a positive trend on certain markets, such as Sweden and our growth markets, the HoReCa market in Germany has not performed as well as the economy in general.

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 Stockholm under the ticker name "DUNI". ISIN-code is SE 0000616716.

Operating income within Professional decreased as a consequence of the somewhat weaker volume development in mature markets, and partly due to the increased investments we are making to stimulate growth on prioritized markets. We also note that the prices of traded goods increased during the quarter, and we estimate that our most important input materials will continue to experience inflationary pressure.

In total, Duni's operating income for the quarter, measured at fixed exchange rates, fell by SEK 3 m, to SEK 74 (77) m. This corresponds to an operating margin of 8.0%, compared with 8.1% last year.

Our expectation for the full year is that the recovery on the HoReCa market will continue in most parts of Europe, which will create conditions for volume growth. As a consequence of the trend of increasing costs for traded goods and input materials, it may become necessary to increase our own prices," says Fredrik von Oelreich, President and CEO, Duni.

____________________________________________________________________

Net sales

Net sales for the period 1 January – 31 March 2011 amounted to SEK 867 (960) m. Adjusted for exchange rate changes, net sales declined by 3.1%. This is primarily attributable to the Tissue business area, which experienced weaker demand at the start of the year.

Net sales, currency effect	3 months January ­ March	3 months January ­ March 20111)	3 months January ­ March	Change in fixed
SEK m	2011	recalculated	2010	exchange rates
Professional	604	651	634	2.7%
Retail	159	174	185	­5.6%
Tissue	104	104	141	­26.1%
Duni	867	930	960	­3.1 %

1) Reported net sales for 2011 recalculated at 2010 exchange rates.

Operating margin

Operating income (EBIT) adjusted for non-recurring items for the period 1 January – 31 March 2011 amounted to SEK 67 (77) m, with an underlying operating margin of 7.8% (8.1%). Adjusted for exchange rate changes, operating income declined by SEK 3 m compared with last year.

The gross margin strengthened to 26.2% (25.8%). Prices for input materials, including pulp, are still at a historically high level. Traded goods are also exhibiting an increased cost trend within both candles and plastic-based products. The gross margin has been maintained mainly thanks to the price increases carried out vis-à-vis customers during the second half of 2010, together with satisfactory capacity utilization at the production plants.

Concerning the insurance claim after the fire at a production plant in Skåpafors, Sweden, the matter is in principle completely settled. The operating income has been affected with a marginal positive effect in the quarter. The insurance company has in the quarter paid-out SEK 43 m to Duni.

The reported income after financial items was SEK 55 (66) m. Income after tax amounted to SEK 41 (51) m.

	3 months	3 months	3 months
Underlying operating income, currency effect	January ­ March	January ­ March	January ­ March
		20111)
SEK m	2011	recalculated	2010
Professional	53	59	69
Retail	6	7	8
Tissue	9	9	1
Duni	67	74	77

1) Underlying operating income for 2011 recalculated at 2010 exchange rates.

Non-recurring items

'Non-recurring items' means restructuring costs as well as non-realized valuation effects of currency and energy derivatives due to the fact that hedge accounting is not applied in respect of these hedge instruments.

Reported income for the period 1 January – 31 March 2011 is affected by non-realized valuation effects of derivatives in the amount of SEK -7 m (-4). For further information, see Note 3.

Non­recurring items	3 months January ­ March	3 months January ­ March	12 months April ­ March	12 months January ­ December
SEK m	2011	2010	2010/2011	2010
Underlying operating income Unrealized value changes,	67	77	425	435
derivative instruments	­7	­4	­2	1
Restructuring costs	­	­	0	0
Reported operating income	61	74	423	436

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 70% (66%) of Duni's net sales for the period 1 January – 31 March 2011.

The Retail business area (primarily focused on retail trade) accounted for 18% (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 12% (15%) 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 management team, which decides upon the allocation of resources within Duni and evaluates results from the business operations, is the highest executive decision-making body in Duni. Duni controls the business areas on the underlying operating income, after shared costs have been allocated to each business area. For further information, see Note 2.

Professional business area

Net sales for the period 1 January – 31 March 2011 fell by SEK 30 m, to SEK 604 (634) m. At fixed exchange rates, this corresponds to an increase of 2.7%. This represents largely unchanged volumes compared with last year.

Measures to support growth which were initiated in 2010, primarily in southern and eastern Europe, are demonstrating a positive result with healthy growth. Central Europe, where Germany is the single largest market, experienced somewhat weaker growth than in the preceding quarter.

Sales - Geographical split, Professional

Operating income amounted to SEK 53 (69) m, with an operating margin of 8.7%

(10.8%). The weaker margin is primarily due to increased market investments. A strengthened sales organization creates conditions for growth on prioritized markets. The price increases carried out last year have compensated for the increased costs of input materials during the quarter.

	3 months	3 months	3 months		12 months	12 months
Net Sales Professional, SEK m	January ­ March 2011	January ­ March 20111) recalculated	January ­ March 2010	Change in fixed exchange rates	April ­ March 2010/2011	January ­ December 2010
Nordic region	142	142	146	­3.4%	641	645
Central Europe	359	395	382	3.4%	1 636	1 660
Southern & Eastern Europe	96	107	99	8.1%	448	451
Rest of the World	7	7	7	14.3%	27	27
Total	604	651	634	2.7%	2 752	2 783

1) Reported net sales for 2011 recalculated at 2010 exchange rates.

Retail business area

Net sales for the period 1 January – 31 March 2011 fell by SEK 26 m, to SEK 159 (185) m. At a fixed exchange rates, this corresponds to a decline in sales of 5.6%. Operating income was SEK 6 (8) m and the operating margin thus weakened to 3.5% (4.3%).

The Nordic region continues to be a highly competitive region, and retailers' focus on private labels is the primary reason for the lower market shares. Duni has also lost some volumes on the German market, though to a lesser extent.

The phasing out of one major private label customer, which was communicated in the third quarter of last year, also began during the quarter. Increased focus is being placed on prioritized customers in order to create profitable growth. As a consequence, some new listings have been achieved.

Sales - Geographical split, Retail

Rest of the World	0	0	0	0.0%	0	0
Southern & Eastern Europe	8	9	9	0.0%	51	52
Central Europe	132	146	150	­2.7%	525	543
Nordic region	19	19	26	­26.9%	87	94
Net Sales Retail, SEK m	3 months January ­ March 2011	3 months January ­ March 20111) recalculated	3 months January ­ March 2010	Change in fixed exchange rates	12 months April ­ March 2010/2011	12 months January ­ December 2010

1) Reported net sales for 2011 recalculated at 2010 exchange rates.

Tissue business area

Net external sales for the period 1 January – 31 March 2011 amounted to SEK 104 (141) m. The significant reduction in sales is primarily attributable to the hygiene products sector and represents mainly by products with poor profitability. Moreover, the volume recovery following the fire at a production plant in June last year has not yet been achieved.

Operating income increased to SEK 9 (1) m. The operating margin was 8.7% (0.4%). The higher margin is due to an improved product mix and price increases, combined with a high capacity utilization.

The Group's operating cash flow for the period 1 January – 31 March 2011 was SEK -30 (-42) m. Inventory value increased by SEK 78 m, to SEK 491 (413) m, accounts receivable declined by SEK 30 m, to SEK 600 (630) m and accounts payable have fallen by SEK 39 m, to SEK 242 (281) m compared with the same period last year. The increased inventory value is to be seen in light of sales which were somewhat lower than anticipated. This will gradually normalize during the year.

Cash flow including investing activities amounted to SEK -67 (-87) m. Duni's net investments amounted to SEK 38 (45) m. Depreciation and impairment for the period amounted to SEK 28 (26) m.

The Group's interest-bearing net debt as per 31 March 2011 was SEK 647 m, compared with SEK 676 m on 31 March 2010 and SEK 582 m on 31 December 2010.

Financial net

The financial net for the period 1 January – 31 March 2011 was SEK -6 (-8) m.

Taxes

The total reported tax expense for the period 1 January – 31 March 2011 was SEK 15 (15) m, yielding an effective tax rate of 26.6% (22.8%). The tax expense for the year includes adjustments from previous periods which lower the cost of SEK 0.5 (2.2) m. The deferred tax asset relating to loss carryforwards was utilized in the amount of SEK 9 (2) m.

Earnings per share

The period's earnings per share before and after dilution amounted to SEK 0.86 (1.09).

Duni's share

As per 31 March 2011 the share capital amounted to SEK 58,748,790 divided into 46,999,032 shares, each with a quotient value of SEK 1.25.

Shareholders

Duni is listed on NASDAQ OMX Stockholm under the ticker name "DUNI". Duni's three largest shareholders, are Mellby Gård Investerings AB (29.99%), Polaris Capital Management, LLC (10.58%) and Lannebo fonder (8.31%).

Personnel

On 31 March 2011 there were 1,937 (1,906) employees. 840 (830) of the employees were engaged in production. Duni's production units are located in Bramsche in Germany, Poznan in Poland, and Bengtsfors in Sweden.

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.

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 2010.

Since 2007, Duni's long-term financing has been secured through financing agreements valid until 2012. Duni has no significant changes in contingent liabilities since 31 December 2010.

Transactions with related parties

No transactions with related parties took place during the first quarter of 2011.

Major events since 31 March

No significant events have occurred after the balance sheet date.

Interim reports

Quarter II 15 July 2011

Quarter III 26 October 2011 (Noted that the date has changed from the date communicated in the report for Q4, 2010)

Annual General Meeting 2011

The Annual General Meeting of Duni AB (publ) will be held in Malmö, Sweden, on Thursday, 5 May 2011 at 3 PM CET at Sankt Gertrud Konferens, Carolinahallen, entrance Östergatan 9, Malmö. For further information, please see Duni's website.

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 2011 Annual General Meeting comprises four members: Anders Bülow (Chairman of the Board of Duni AB); Rune Andersson (Mellby Gård Investerings AB and Chairman of the Nomination Committee); Bernard R. Horn, Jr (Polaris Capital Management, LLC) and Björn Franzon (Swedbank Robur fonder).

Changes on the Board of Directors

The Nomination Committee proposes to the 2011 Annual General Meeting that Anders Bülow, Tomas Gustafsson, Pia Rudengren and Magnus Yngen be re-elected. It is proposed that Anders Bülow be reelected as Chairman of the Board. Sanna Suvanto-Harsaae has declined re-election. It is proposed that at the Annual General Meeting Tina Andersson be elected as a new director. Tina Andersson is Group Director Marketing and Innovation at Hilding Anders AB.

The Parent Company

Net sales for the period 1 January – 31 March 2011 amounted to SEK 258 (267) m. Income after financial items was SEK -23 (-26) m.

Net debt amounted to SEK -283 (-33) m, of which receivables of SEK 895 (659) m relates to subsidiaries. Other receivables have increased due to increased lending to subsidiaries. Net investments amounted to SEK 7 (6) m.

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 2.3, 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 2010. There is no non-controlling interest in Duni.

Information in the report

The information is such that Duni AB (publ) is to publish in accordance with the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information will be submitted for publication on 28 April at 8.00 AM CET.

The interim report will be presented on Thursday, 28 April at 10.00 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 0110. To follow the presentation via the web, please visit this link:

http://webeventservices.stream57.com/20110428duni/

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.

This report has not been the subject of an audit by the Company's auditors.

Malmö, 27 April 2011

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 Helena Haglund, Group Accounting Manager, +46 734 19 63 04

Duni AB (publ) Box 237 201 22 Malmö Tel.: +46 40 10 62 00 www.duni.com Registration no: 556536-7488

Consolidated Income Statements

	3 months January ­ March	3 months January ­ March	12 months April ­ March	12 months January ­ December
SEK m (Note 1)	2011	2010	2010/2011	2010
Net Sales	867	960	3 877	3 971
Cost of goods sold	­640	­712	­2 847	­2 919
Gross profit	227	248	1 030	1 052
Selling expenses	­118	­121	­431	­434
Administrative expenses	­42	­45	­171	­174
Research and development expenses	­6	­6	­25	­25
Other operating incomes (Note 3)	13	23	124	134
Other operating expenses (Note 3)	­13	­25	­105	­117
Operating income (Note 2)	61	74	423	436
Financial income	1	0	2	1
Financial expenses	­6	­8	­17	­19
Net financial items	­6	­8	­15	­18
Income after financial items	55	66	408	418
Income tax	­15	­15	­112	­112
Net Income	41	51	296	306
Income attributable to:
Equity holders of the Parent Company	41	51	296	306
Earnings per share, attributable to equity holders of the Parent Company, SEK
Before and after dilution	0.86	1.09	6.30	6.52
Average number of shares before and after dilution (´000)	46 999	46 999	46 999	46 999

Statement of comprehensive income

SEK m	3 months January ­ March	3 months January ­ March	12 months April ­ March	12 months January ­ December
	2011	2010	2010/2011	2010
Net income of the period	41	51	296	306
Comprehensive income, net after tax:
Exchange rate differences ­ translation of subsidiaries	­3	4	6	13
Cash flow hedge	0	­	0	­
Comprehensive income of the period, net after tax	­3	4	6	13
Sum of comprehensive income of the period Comprehensive income of the period attributable to:	38	55	302	319
Equity holders of the Parent Company	38	55	302	319

Consolidated Quarterly Income Statements in brief

SEK m	2011		2010			2009
Quarter	Jan ­ Mar	Oct ­ Dec	Jul ­ Sep	Apr ­ Jun	Jan Mar	Oct ­ Dec	Jul ­ Sep	Apr ­ Jun
Net Sales	867	1 097	943	970	960	1 157	1 021	1 035
Cost of goods sold	­640	­785	­698	­724	­712	­800	­734	­766
Gross profit	227	312	245	246	248	357	287	269
Selling expenses	­118	­107	­99	­107	­121	­128	­109	­119
Administrative expenses	­42	­45	­43	­42	­45	­43	­45	­52
Research and development expenses	­6	­9	­5	­5	­6	­10	­6	­6
Other operating incomes	13	80	15	16	23	9	48	24
Other operating expenses	­13	­62	­11	­18	­25	­12	­38	­8
Operating income	61	169	102	91	74	173	137	108
Financial income	1	0	0	0	0	0	0	0
Financial expenses	­6	­6	­3	­2	­8	­7	­3	­14
Net financial items	­6	­6	­3	­1	­8	­7	­3	­14
Income after financial items	55	163	99	90	66	166	134	94
Income tax	­15	­46	­27	­24	­15	­35	­35	­26
Net Income	41	117	72	66	51	131	100	68

Consolidated Balance Sheets in brief

	31 March	31 December	31 March
SEK m	2011	2010	2010
ASSETS
Goodwill	1 199	1 199	1 199
Other intangible fixed assets	42	44	27
Tangible fixed assets	597	588	518
Financial fixed assets	277	289	333
Total fixed assets	2 115	2 120	2 077
Inventories	491	437	413
Accounts receivable	600	634	630
Other operating receivables	130	174	127
Cash and cash equivalents	97	122	103
Total current assets	1 318	1 367	1 273
TOTAL ASSETS	3 433	3 487	3 350
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	2 029	1 991	1 844
Long­term loans Other long­term liabilities	569 209	530 211	603 212
Total long­term liabilities	778	741	815
Accounts payable	242	315	281
Other short­term liabilities	384	440	410
Total short­term liabilities	626	755	691
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	3 433	3 487	3 350

Change in the Group's shareholders' equity

					Attributable to equity holders of the parent company
	Share	Other	Reserves	Cash flow	Fair value	Loss	TOTAL
	capital	injected		reserves	reserve	carried	EQUITY
		capital			1)	forward
						incl. net
						income
						for the
SEK m						period
Opening balance 1 January 2010	59	1 681	36	­	13	0	1 789
Sum of comprehensive income of the period	­	­	4	­	­	51	55
Closing balance 31 March 2010	59	1 681	40	­	13	51	1 844
Sum of comprehensive income of the period	­	­	9	­	­	255	264
Dividend paid to shareholders	­	­	­	­	­	­117	­117
Closing balance 31 December 2010	59	1 681	49	­	13	189	1 991
Sum of comprehensive income of the period	­	­	­3	0	0	41	38
Closing balance 31 March 2011	59	1 681	46	0	13	230	2 029

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 ­ 31 March	1 January ­ 31 March
SEK m	2011	2010
Current operation
Operating income	61	74
Adjustment for items not included in cash flow etc	29	16
Paid interest and tax	­19	9
Change in working capital	­101	­140
Cash flow from operations	­30	­42
Investments
Acquisition of fixed assets	­39	­45
Sales of fixed assets	1	0
Change in interest­bearing receivables	1	0
Cash flow from investments	­37	­45
Financing
Taken up loans1)	­	­
Amortization of debt1)	­	­102
Change in borrowing	44	63
Cash flow from financing	44	­39
Cash flow from the period	­23	­125
Liquid funds, opening balance	122	230
Exchange difference, cash and cash equivalents	­1	­2
Cash and cash equivalents, closing balance	97	103

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 – 31 March	1 January – 31 March
	2011	2010
Net Sales, SEK m	867	960
Gross Profit, SEK m	227	248
EBIT1), SEK m	67	77
EBITDA1), SEK m	95	104
Net debt	647	676
Number of Employees	1 937	1 906
Sales growth	­9.7%	­4.7%
Gross margin	26.2%	25.8%
EBIT1) margin	7.8%	8.1%
EBITDA1) margin	11.0%	10.8%
Return on capital employed1)	17.7%	20.0%
Net debt/equity ratio	31.9%	36.6%
Net debt/EBITDA 1)	1.22	1.24

1) Calculated based on underlying operating income.

2) Calculated based on the last twelve months.

Parent Company Income Statements in brief

SEK m	3 months January ­ March	3 months January ­ March
(Note 1)	2011	2010
Net Sales	258	267
Cost of goods sold	­235	­243
Gross profit	23	24
Selling expenses	­30	­33
Administrative expenses	­31	­31
Research and development expenses	­3	­3
Other operating incomes	58	64
Other operating expenses	­40	­54
Operating income	­23	­33
Revenue from participations in Group Companies	­	­
Other interest revenue and similar income	7	5
Interest expenses and similar expenses	­7	2
Net financial items	0	7
Income after financial items	­23	­26
Appropriations	­	­
Taxes on income for the period	­1	0
Net income for the period	­24	­26

Parent Company Statement of comprehensive income

SEK m	3 months January – March	3 months January ­ March
	2011	2010
Net income of the period	­24	­26
Comprehensive income, net after tax:
Exchange rate differences ­ translation of subsidiaries	1	0
Cash flow hedge	0	­
Comprehensive income of the period, net after tax	1	0
Sum of comprehensive income of the period	­23	­26
Comprehensive income of the period attributable to:
Equity holders of the Parent Company	­23	­26

Parent Company Balance Sheets in Brief

	31 March	31 December	31 March
SEK m	2011	2010	2010
ASSETS
Goodwill	575	599	674
Other intangible fixed assets	34	38	27
Total intangible fixed assets	609	637	701
Tangible fixed assets	68	63	69
Financial fixed assets	1 021	1 031	1 068
Total fixed assets	1 698	1 731	1 838
Inventories	106	103	93
Accounts receivable	101	96	99
Other operating receivables	1 031	1 026	832
Cash and bank	40	65	58
Total current assets	1 278	1 290	1 082
TOTAL ASSETS	2 976	3 021	2 920
SHAREHOLDERS' EQUITY AND LIABILITIES
Total restricted shareholders equity	83	83	83
Total unrestricted shareholders equity	1 997	1 994	1 845
Shareholders' equity 1)	2 080	2 077	1 928
Provisions	109	109	112
Long­term financial liabilities	507	510	531
Total long­term liabilities	507	510	531
Accounts payable	35	52	44
Other short­term liabilities	245	273	305
Total short­term liabilities	280	325	349
TOTAL SHAREHOLDERS' EQUITY, PROVISIONS AND
LIABILITIES	2 976	3 021	2 920

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 2011 are calculated at exchange rates for 2010.

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.

Private label: Products marketed under customer's own label.

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, Reporting for Legal Entities, and the Annual Accounts Act. The accounting principles are the same as in the Annual Report as per 31 December 2010.

Note 2 • Segment reporting, SEK m

2011­01­01 – 2011­03­31	Professional	Retail	Tissue	Totalt
Total net sales	604	159	250	1 013
Net sales from other segments	­	­	146	146
Net sales from external customers	604	159	104	867
Underlying operating income	53	6	9	67
Non­recurring items	­	­	­	­7
Operating income	­	­	­	61
Net financial items	­	­	­	­6
Income after financial items	­	­	­	55

2010­01­01 – 2010­03­31	Professional	Retail	Tissue	Totalt
Total net sales	634	185	259	1 078
Net sales from other segments	­	­	118	118
Net sales from external customers	634	185	141	960
Underlying operating income	69	8	1	77
Non­recurring items	­	­	­	­4
Operating income	­	­	­	74
Net financial items	­	­	­	­8
Income after financial items	­	­	­	66

No significant changes have taken place in the assets of the segments compared with the annual report as per 31 December 2010.

Note 3 • Non-recurring items

Duni considers restructuring cost and unrealized valuation effects on derivative instruments, due to non-application 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.

Derivative instruments	3 months January - March	3 months January - March	12 months April - March	12 months January - December
SEK m	2011	2010	2010/2011	2010
Other operating income	­	0	7	8
Other operating expenses	­7	­4	­9	­6
Total	­7	­4	­2	1

Restructuring cost	3 months January ­ March	3 months January ­ March	12 months April ­ March	12 months January ­ December
SEK m	2011	2010	2010/2011	2010
Cost of goods sold	­	­	0	0
Selling expenses	­	­	1	1
Other operating expenses	­	­	­1	­1
Total	0	0	0	0