Duni — Interim / Quarterly Report 2011

Feb 15, 2012

Year-end Report for Duni AB (publ) 1 January – 31 December 2011

(compared with the same period of the previous year)

15 February 2012

Increased investments in long-term growth

1 January – 31 December 2011

• Net sales amounted to SEK 3,807 m (3,971). Adjusted for exchange rate changes, net sales decreased by 0.8%.
• Earnings per share amounted, after dilution, to SEK 5.54 (6.52).
• The Board proposes a dividend of SEK 3.50 (3.50) per share.
• Higher investments to promote long-term growth.

1 October – 31 December 2011

• Net sales amounted to SEK 1,063 m (1,097). Adjusted for exchange rate changes, net sales decreased by 2.0%.
• Earnings per share amounted, after dilution, to SEK 2.09 (2.49).
• The operating margin almost on par with a strong quarter last year. Strong gross margin of 29.7% (28.4%) in the seasonally most important quarter.

Key financials

	12 months January­ December	12 months January­ December	3 months October­ December	3 months October­ December
SEK m	2011	2010	2011	2010
Net sales	3 807	3 971	1 063	1 097
Operating income1)	404	435	151	163
Operating margin1)	10.6%	10.9%	14.2%	14.8%
Income after financial items	358	418	134	163
Net income	261	306	98	117

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

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.

CEO's comments

"Duni ended 2011 with good profitability during the final quarter of the year, which includes the all-important Christmas season. Operating income was SEK 151 m (SEK 163 m) and the operating margin reached 14.2% (14.8%). This is somewhat below a very strong fourth quarter of 2010 and reflects a degree of cautious restraint on some of Duni's main markets.

Sales largely followed the pattern of the preceding quarter and were 2% lower at fixed exchange rates. This reflects a stable sales trend within the Professional business area, while we lost some sales within Retail and Tissue. As far as Retail is concerned, this is the due to the continued phasing out of the large private label account which has been commented on previously. In other respects, sales were stable and Duni has increased its market shares in the grocery retail trade, particularly in England but also in Benelux.

A degree of weakening was noted in the Tissue business area, which is partly attributable to inventory reductions at our customers. In terms of income, the trend within Tissue remained healthy; this is mainly due to productivity improvements.

For the Professional business area, the quarter was characterized by stability on the main markets in the Nordic region, Germany and Benelux. An operating profit of SEK 121 m (SEK 124 m) and an operating margin of 16.1% (16.4%) can be considered satisfactory in light of the fact that 2011 was a year of increased capital expenditures and marketing efforts aimed at profitable growth going forward.

Duni's largest investment during the year has been in new technology for the production of a new premium material - Evolin®. A patent has been sought for the technology and the material, which is entirely unique, is aimed at the table cover market, with the goal being to reach the same quality level as linen, but with a more attractive total economy for the end customer. The interesting fact is that Duni is thereby entering a market segment which is significantly larger than our current addressable market. The product will be launched gradually during the first quarter of 2012, with an accelerated rollout thereafter. This represents an extremely exciting phase in Duni's development, since the Company's successes are largely based on unique premium materials such as Dunilin® and Dunicel®.

We are also focusing on further improving efficiency in the operations. During 2012, we intend to carry out a program of measures to achieve increased efficiency within the organization as well as in production. Combined with our investments for growth, this is expected to result in improved profitability.

As regards the macro-economic perspective for 2012, we anticipate a degree of economic slowdown in Europe in light of the high sovereign debt problems in some countries and the related Euro crisis. This may have a degree of impact on volume growth, but it may also bring with it lower prices for input materials," says Fredrik von Oelreich, President and CEO, Duni.

Net sales amounted to SEK 3,807 m 1 January – 31 December

Net sales fell by SEK 164 m compared with the same period of last year, to SEK 3,807 m (3,971). Adjusted for exchange rate movements, net sales declined by 0.8%. Despite growing economic uncertainty at the end of the year, the main area Professional sales increased by 3.1% at constant exchange rates.

1 October – 31 December

Net sales amounted to SEK 1,063 m (1,097). Adjusted for exchange rate movements, net sales declined by 2.0%. The increased uncertainty in the market has affected order patterns and inventory levels at Duni customers within all business areas. However, this effect has been mitigated by the prioritized growth initiatives within Professional and the business area's sales are at the same level as last year.

Net sales, currency effect SEK m	12 months January­ December 2011	12 months January­ December 20111) recalculated	12 months January­ December 2010	Change in fixed exchange rates	3 months October­ December 2011	3 months October­ December 20111) recalculated	3 months October­ December 2010	Change in fixed exchange rates
Professional	2 766	2 868	2 783	3.1%	750	757	758	­0.1%
Retail	612	641	689	­7.0%	209	215	231	­7.0%
Tissue	428	428	499	­14.1%	104	104	109	­4.6%
Duni	3 807	3 938	3 971	­0.8%	1 063	1 076	1 097	­2.0%

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

Operating margin of 10.6 %

1 January – 31 December

Operating income (EBIT) adjusted for non-recurring items amounted to SEK 404 m (435). The gross margin improved from 26.5% to 27.1%. The underlying operating margin for the Group was 10.6% (10.9%). Adjusted for exchange rate movements, operating income was SEK 18 million lower than last year. Income after financial items was SEK 358 m (418). Income after tax was SEK 261 m (306).

The gross margin strengthened somewhat compared with last year. The increased focus on marketing and sales activities during the year resulted in a slightly lower operating margin due to higher indirect costs.

1 October – 31 December

Operating income ((EBIT) adjusted for non-recurring items fell by SEK 12 m to SEK 151 m (163), while the gross margin improved to 29.7% (28.4%). The operating margin weakened slightly to 14.2% (14.8%). Adjusted for exchange rate movements, operating income is SEK 10 million lower than last year. Income after financial items was SEK 134 m (163). Income after tax was SEK 98 m (117).

The decrease in volume within Retail and the investments for the future within Professional are the main explanations for the lower result. Price increases were concluded during the quarter, which resulted in a continued solid gross margin. The development of Evolin®, a revolutionary new premium quality for table covers, was completed during the quarter and initial launching of the product will take place in the first quarter of 2012.

Underlying operating income, currency effect SEK m	12 months January­ December 2011	12 months January­ December 20111) recalculated	12 months January­ December 2010	3 months October­ December 2011	3 months October­ December 20111) recalculated	3 months October­ December 2010
Professional	357	369	384	121	122	124
Retail	21	22	32	24	26	33
Tissue	25	26	18	6	6	6
Duni	404	417	435	151	153	163

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 financial instruments.

Reported income for the period 1 January – 31 December 2011 is affected by non-realized valuation effects of derivatives in the amount of SEK -10 m (1). During the quarter, restructuring costs were about SEK 6 m to adapt and streamline production in Poland. The plan is to take about SEK 15 m in restructuring costs in 2012 for improved organizational effectiveness. Combined these measures will provide annual savings of approximately SEK 25 m with full effect from the fourth quarter of 2012. For further information see Note 3.

Non­recurring items	12 months January­	12 months January­	3 months October­	3 months October­
SEK m	December 2011	December 2010	December 2011	December 2010
Underlying operating income	404	435	151	163
Unrealized value changes, derivative instruments	­10	1	­1	6
Restructuring costs	­6	0	­6	0
Reported operating income	388	436	144	169

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 73% (70%) of Duni's net sales for the period 1 January – 31 December 2011.

The Retail business area (primarily focused on retail trade) accounted for 16% (17%) of net sales during the period.

The Tissue business area (airlaid and tissue-based material for tabletop products and hygiene applications) accounted for 11% (13%) of sales to external customers during the period.

The Professional and Retail business areas have,

Split on Net sales between business areas

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

1 January – 31 December

Net sales amounted to SEK 2,766 m (2,783). At fixed exchange rates this corresponds to an increase in sales of 3.1%. Duni's growth markets continue to be Southern and Eastern Europe. Despite increasing economic turbulence, not least in these regions, it is here that growth has been greatest, showing that the efforts made are yielding results. Operating income was SEK 357 m (384) and the operating margin was 12.9% (13.8%).

Sales, Geographical split, Professional

1 October – 31 December

Net sales declined by SEK 8 m, to SEK 750 m (758). At fixed exchange rates this represents flat sales. All regions demonstrated stability compared with last year. Throughout the year, raw material prices have been at a high level and price increases were carried out during the second half in order to address this situation. Focused efforts in prioritized areas to ensure long-term satisfactory growth have resulted in an increase in indirect costs.

Operating income declined to SEK 121 m (124), with an operating margin of 16.1% (16.4%). From an earnings perspective, the fourth quarter is the dominant quarter and thus it is pleasing that a high margin is maintained.

During the fourth quarter, preparations were concluded for the launching of the new premium quality, Evolin®, and sales will begin gradually during the first quarter of 2012. For more information, visit www.evolutionoflinen.com.

Net Sales, Professional	12 months January­ December	12 months January­ December	12 months January­ December	3 months October­ December	3 months October­ December	3 months October­ December
SEK m	2011	20111) recalculated	2010	2011	20111) recalculated	2010
Nordic region	635	635	645	179	179	182
Central Europe	1 640	1 713	1 660	446	449	451
Southern & Eastern Europe	462	489	451	117	120	118
Rest of the World	29	31	27	9	9	7
Total	2 766	2 868	2 783	750	757	758

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

Retail business area

1 January – 31 December

Net sales amounted to SEK 612 m (689), representing a fall in sales of 7% at fixed exchange rates. As previously communicated, the decline is primarily due to the loss of a major private label customer. The retail trade continues to be a challenging sector with low or negative growth, but Duni maintain its market shares. Operating income was SEK 21 m (32). The operating margin declined to 3.4% (4.6%).

1 October – 31 December

Net sales amounted to SEK 209 m (231). At fixed exchange rates this represents a fall in sales of 7%. Sales are stable when corrected to take into account the lost private label contract.

Operating income was SEK 24 m (33) and the operating margin was 11.7% (14.1%). In contrast to Professional, Retail experienced a degree of delay in its price increases, which has affected the gross margin.

Net Sales, Retail	12 months January­ December	12 months January­ December	12 months January­ December	3 months October­ December	3 months October­ December	3 months October­ December
SEK m	2011	20111) recalculated	2010	2011	20111) recalculated	2010
Nordic region	82	82	94	25	25	28
Central Europe	502	528	543	177	182	181
Southern & Eastern Europe	26	28	52	6	6	22
Rest of the World	2	2	0	1	1	0
Total	612	641	689	209	215	231

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

Tissue business area

1 January – 31 December

External net sales amounted to SEK 428 m (499). Hygiene products were characterized by weaker demand combined with inventory adjustments.

Operating profit was SEK 25 m (18). The operating margin increased to 5.9% (3.7%). During the year, Tissue continued to improve its production processes, which is reflected in productivity increases as well as reduced costs for maintenance and unscheduled outages. This is the single most important explanation for the improved operating margin.

1 October – 31 December

Net sales amounted to SEK 104 m (109). Operating income was SEK 6 m (6) and the operating margin was maintained at 5.4% (5.4%). Pulp prices fell during the autumn, which contributed positively to the margin. However, volumes declined and thus capacity utilization was negatively affected.

Cash flow

The Group's operating cash flow for the period 1 January – 31 December was SEK 362 m (296). Cash flow has been positively affected by insurance compensation received in respect of the fire at one of the paper mills in the summer of 2010. Inventory value is SEK 470 m (437). Accounts receivable increased by SEK 29 m to SEK 663 m (643). Accounts payable amounted to SEK 302 m (315).

Cash flow including investing activities amounted to SEK -14 m (65). Duni is continuing to invest for growth. Net capital expenditures for the period amounted to SEK 377 m (236), which is a historically high capital expenditure level. Approximately SEK 160 m of the net capital expenditures for the year relates to the buy-back of a production and logistics property in Bramsche, Germany, which Duni has leased since 1998. It is estimated that the repurchase will contribute SEK 10 m to operating income in 2012. Most of the other investments were focused on production plant, primarily in Sweden and Germany. Depreciation and amortization for the period amounted to SEK 107 m (102).

The Group's interest-bearing net debt as per 31 December 2011 was SEK 745 m, compared with SEK 582 m as per 31 December 2010. Adjusted for the buy-back of the property in Bramsche, Germany, the Group's interest-bearing net debt is basically unchanged from previous year.

Financial net

The financial net for the period 1 January – 31 December amounted to SEK -30 m (-18). Interest rates are somewhat higher than last year. The financial net has been affected by negative realized exchange rate results which, for the same period last year, were somewhat positive.

Taxes

The total reported tax expense for the period 1 January – 31 December was SEK 98 m (112), yielding an effective tax rate of 27.3% (26.7%). The tax expense for the year includes adjustments from previous periods of SEK -5 m (-3). The deferred tax asset relating to loss carry-forwards was utilized in the amount of SEK 41 m (37).

Earnings per share

The earnings per share before and after dilution amounted to SEK 5.54 (6.52).

Duni's share

As per 31 December 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 (8.83%).

Personnel

On 31 December 2011 there were 1,888 (1,914) employees. 813 (814) 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. Fluctuations in prices of raw materials and energy constitute an operational risk which may have a material impact on Duni's operating income.

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 a financing agreement which extends to November 2012. Accordingly, Duni's borrowing as per 31 December 2011 is reported as short-term. Duni has commenced a procurement procedure with the intention of having a new long-term facility in place well in time before the current facility expires.

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 fourth quarter of 2011.

Major events since 31 December

No significant events have occurred after the balance sheet date.

Interim reports

Quarter I	27 April, 2012
Quarter II	13 July, 2012
Quarter III	24 October, 2012

Proposed dividend

The Board of Directors proposes a dividend of SEK 3.50 (3.50) per share, equal to SEK 164 m (164). The Board believes that the proposed dividend provides scope for the Group to perform its obligations and implement planned capital expenditures. 8 May 2012 is proposed as the record date for the right to receive dividends.

Annual General Meeting 2012

Duni AB's annual general meeting will be held in Malmö at 3.00 PM on 3 May 2012 at Skånes Dansteater. For further information, please see Duni's website. The annual report will be available on Duni website in beginning of the week starting with 2 April. Shareholders who wish to submit proposals to Duni's Nomination Committee or who wish to have a matter addressed at the annual general meeting may do so by e-mail to valberedningen@duni.com or bolagsstamma@duni.com, or by letter to the following address: Duni AB, Att: Valberedningen or Bolagsstämma, Box 237, 201 22 Malmö, not later than 9 March 2012.

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 of Directors. The Nomination Committee submits proposals regarding a Chairman of the Board and other directors. It also produces proposals regarding board fees, including the allocation thereof between the Chairman and other directors, as well as any compensation for committee work.

Duni's Nomination Committee for the 2012 annual general meeting comprises four members: Anders Bülow, Chairman of Duni AB; Rune Andersson, Mellby Gård Investerings AB, and chairman of the Nomination Committee; Bernard R. Horn, Jr., Polaris Capital Management, LLC; and Göran Espelund, Lannebo Fonder.

Parent Company

Net sales for the period 1 January – 31 December amounted to SEK 1,159 m (1,180). Income after financial items was SEK 198 m (272).

The net debt amounted to SEK -407 m (-282), of which a net claim of SEK 1,117 m (831) relates to subsidiaries. Net capital expenditures amounted to SEK 42 m (24).

Accounting principles

This interim report for the Group 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, 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.

During the year, the accounting principle relating to group contributions has been changed. The Parent Company's income statement has been recalculated as regards received group contributions.

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 15 February at 8.00 AM CET.

The year-end report will be presented on Wednesday, 15 February 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. Telephone conference ID for participants is 911047. To follow the presentation via the web, please visit this link:

http://webeventservices.reg.meeting-stream.com/57768_duni20120215

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, 14 February 2012

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 Marielle Noble, Communication Director, +46 734 19 61 79

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	12 months	3 months	3 months
	January	January	October	October
	December	December	December	December
SEK m (Note 1)	2011	2010	2011	2010
Net Sales	3 807	3 971	1 063	1 097
Cost of goods sold	­2 776	­2 919	­747	­785
Gross profit	1 031	1 052	315	312
Selling expenses	­441	­434	­109	­107
Administrative expenses	­172	­174	­45	­45
Research and development expenses	­30	­25	­9	­9
Other operating incomes (Note 3)	65	134	16	80
Other operating expenses (Note 3)	­65	­117	­25	­62
Operating income (Note 2)	388	436	144	169
Financial income	3	1	1	0
Financial expenses, etc	­33	­19	­10	­6
Net financial items	­30	­18	­9	­6
Income after financial items	358	418	134	163
Income tax	­98	­112	­36	­46
Net Income	261	306	98	117
Income attributable to:
Equity holders of the Parent Company	261	306	98	117
Earnings per share, attributable to equity holders of the Parent Company, SEK
Before and after dilution Average number of shares before and after	5,54	6,52	2,09	2,49
dilution (´000)	46 999	46 999	46 999	46 999

Statement of Comprehensive Income

SEK m	12 months January December 2011	12 months January December 2010	3 months October December 2011	3 months October December 2010
Net income of the period	261	306	98	117
Comprehensive income, net after tax:
Exchange rate differences ­ translation of subsidiaries	­6	13	5	2
Cash flow hedge	0	­	0	­
Comprehensive income of the period, net after tax:	­6	13	5	2
Sum of comprehensive income of the period	255	319	103	119
Comprehensive income of the period attributable to:
Equity holders of the Parent Company	255	319	103	119

Consolidated Quarterly Income Statements in brief

SEK m		2011				2010
Quarter	Oct­ Dec	Jul­ Sep	Apr­ Jun	Jan Mar	Oct­ Dec	Jul­ Sep	Apr­ Jun	Jan Mar
Net Sales	1 063	917	960	867	1 097	943	970	960
Cost of goods sold	­747	­669	­720	­640	­785	­698	­724	­712
Gross profit	315	248	241	227	312	245	246	248
Selling expenses	­109	­105	­110	­118	­107	­99	­107	­121
Administrative expenses	­45	­43	­43	­42	­45	­43	­42	­45
Research and development expenses	­9	­7	­7	­6	­9	­5	­5	­6
Other operating incomes	16	17	19	13	80	15	16	23
Other operating expenses	­25	­13	­14	­13	­62	­11	­18	­25
Operating income	144	98	86	61	169	102	91	74
Financial income	1	1	1	1	0	0	0	0
Financial expenses etc.	­10	­9	­7	­6	­6	­3	­2	­8
Net financial items	­9	­8	­7	­6	­6	­3	­1	­8
Income after financial items	134	90	79	55	163	99	90	66
Income tax	­36	­26	­20	­15	­46	­27	­24	­15
Net Income	98	63	59	41	117	72	66	51

Consolidated Balance Sheets in brief

SEK m	31 December 2011	31 December 2010
ASSETS
Goodwill	1 199	1 199
Other intangible fixed assets	57	44
Tangible fixed assets	830	588
Financial fixed assets	243	289
Total fixed assets	2 329	2 120
Inventories	470	437
Accounts receivable	663	634
Other operating receivables	134	174
Cash and cash equivalents	85	122
Total current assets	1 352	1 367
TOTAL ASSETS	3 681	3 487
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	2 082	1 991
Long­term loans	26	530
Other long­term liabilities	212	211
Total long­term liabilities	238	741
Accounts payable	302	315
Short­term loans	635	­
Other short­term liabilities	424	440
Total short­term liabilities	1 361	755
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	3 681	3 487

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 reserve 1)	Loss carried forward incl. net income for the period	TOTAL EQUITY
Opening balance 1 January 2010	59	1 681	36	13	0	1 789
Sum of comprehensive income of the period	­	­	13	­	306	319
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	­	­	­6	­	261	255
Dividend paid to shareholders	­	­	­	­	­164	­164
Closing balance 31 December 2011	59	1 681	43	13	286	2 082

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 December	1 January 31 December
SEK m	2011	2010
Current operation
Operating income	388	436
Adjustment for items not included in cash flow etc	100	84
Paid interest and tax	­68	­49
Change in working capital	­58	­175
Cash flow from operations	362	296
Investments
Acquisition of fixed assets	­380	­240
Sales of fixed assets	3	3
Change in interest­bearing receivables	1	6
Cash flow from investments	­376	­231
Financing
Taken up loans1)	161	136
Amortization of debt1)	­37	­211
Dividend paid	­164	­117
Change in borrowing	18	23
Cash flow from financing	­22	­169
Cash flow from the period	­36	­104
Liquid funds, opening balance	122	230
Exchange difference, cash and cash equivalents	­1	­4
Cash and cash equivalents, closing balance	85	122

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 December	1 January 31 December
	2011	2010
Net Sales, SEK m	3 807	3 971
Gross Profit, SEK m	1 031	1 052
EBIT1), SEK m	404	435
EBITDA1), SEK m	510	537
Net debt	745	582
Number of Employees	1 888	1 914
Sales growth	­4.1%	­5.9%
Gross margin	27.1%	26.5%
EBIT1) margin	10.6%	10.9%
EBITDA1) margin	13.4%	13.5%
Return on capital employed1) 2)	16.8%	19.0%
Net debt/equity ratio	35.8%	29.2%
Net debt/EBITDA 1) 2)	1.46	1.08

1) Calculated based on underlying operating income.

2) Calculated based on the last twelve months.

Parent Company Income Statements in brief

	12 months	12 months	3 months	3 months
	January	January	October	October
SEK m (Note 1)	December 2011	December 2010	December 2011	December 2010
Net Sales	1 159	1 180	334	330
Cost of goods sold	­1 037	­1 055	­298	­305
Gross profit	122	125	37	25
Selling expenses	­108	­110	­26	­25
Administrative expenses	­137	­129	­36	­35
Research and development expenses	­15	­14	­5	­5
Other operating incomes	239	258	66	73
Other operating expenses	­171	­200	­47	­51
Operating income	­70	­70	­12	­18
Revenue from participations in Group Companies	265	322	226	71
Other interest revenue and similar income	31	22	9	7
Interest expenses and similar expenses	­29	­2	­10	­5
Net financial items	268	342	225	73
Income after financial items	198	272	213	55
Taxes on income for the period	­38	­30	­32	­19
Net income for the period	160	242	181	36

Parent Company Statement of Comprehensive Income

	12 months	12 months	3 months	3 months
	January	January	October	October
	December	December	December	December
SEK m	2011	2010	2011	2010
Net income of the period
Comprehensive income, net after tax:	160	242	181	36
Exchange rate differences ­ translation of subsidiaries	3	1	0	1
Cash flow hedge	0	­	0	­
Comprehensive income of the period, net after tax	3	1	0	1
Sum of comprehensive income of the period Comprehensive income of the period attributable to:	163	243	181	37
Equity holders of the Parent Company	163	243	181	37

Parent Company Balance Sheets in Brief

	31 December	31 December
SEK m	2011	2010
ASSETS
Goodwill	500	599
Other intangible fixed assets	49	38
Total intangible fixed assets	548	637
Tangible fixed assets	69	63
Financial fixed assets	992	1 031
Total fixed assets	1 610	1 731
Inventories	88	103
Accounts receivable	96	96
Other operating receivables	1 298	1 026
Cash and bank	43	65
Total current assets	1 526	1 290
TOTAL ASSETS	3 135	3 021
SHAREHOLDERS' EQUITY AND LIABILITIES
Total restricted shareholders equity	83	83
Total unrestricted shareholders equity	1 993	1 994
Shareholders' equity	2 076	2 077
Provisions	114	109
Long­term financial liabilities	9	510
Total long­term liabilities	9	510
Accounts payable	56	52
Short­term financial liabilities	635	­
Other short­term liabilities	245	273
Total short­term liabilities	936	325
TOTAL SHAREHOLDERS' EQUITY, PROVISIONS
AND LIABILITIES	3 135	3 021

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.

During the year, the accounting principle relating to group contributions has been changed. The Parent Company's income statement has been recalculated as regards received group contributions.

Note 2 • Segment reporting, SEK m

January - December

2011­01­01 – 2011­12­31	Professional	Retail	Tissue	Group's Total
Total net sales	2 766	612	1 011	4 390
Net sales from other segments	­	­	583	583
Net sales from external customers	2 766	612	428	3 807
Underlying operating income	357	21	25	404
Non­recurring items	­12	­3	­1	­16
Operating income	345	18	24	388
Net financial items	­	­	­	­30
Income after financial items	­	­	­	358

2010­01­01 – 2010­12­31	Professional	Retail	Tissue	Group's Total
Total net sales	2 783	689	1 078	4 550
Net sales from other segments	­	­	579	579
Net sales from external customers	2 783	689	499	3 971
Underlying operating income	384	32	18	435
Non­recurring items	1	0	0	­
Operating income	385	32	19	436
Net financial items	­	­	­	­18
Income after financial items	­	­	­	418

October - December

2011­10­01 – 2011­12­31	Professional	Retail	Tissue	Group's Total
Total net sales	750	209	256	1 215
Net sales from other segments	­	­	152	152
Net sales from external customers	750	209	104	1 063
Underlying operating income	121	24	6	151
Non­recurring items	­6	­1	0	­7
Operating income	115	23	6	144
Net financial items	­	­	­	­9
Income after financial items	­	­	­	134

2010­10­01 – 2010­12­31	Professional	Retail	Tissue	Group's Total
Total net sales	758	231	291	1 280
Net sales from other segments	­	­	182	182
Net sales from external customers	758	231	109	1 098
Underlying operating income	124	33	6	163
Non­recurring items	4	1	1	6
Operating income	128	34	7	169
Net financial items	­	­	­	­6
Income after financial items	­	­	­	163

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 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.

Derivative instruments SEK m	12 months January December 2011	12 months January December 2010	3 months October December 2011	3 months October December 2010
Other operating incomes	­	8	0	6
Other operating expenses	­10	­6	­1	0
Total	­10	1	­1	6

Restructuring cost SEK m	12 months January December 2011	12 months January December 2010	3 months October December 2011	3 months October December 2010
Cost of goods sold	­2	0	­2	0
Selling expenses	­	1	­	1
Administrative expenses	­2	­	0	­
Other operating expenses	­2	­1	­4	­1
Total	­6	0	­6	0