Duni — Interim / Quarterly Report 2022

Oct 27, 2022

Sales increase, in a quarter without restrictions

July 1 – September 30

• Net sales amounted to SEK 1,834 m (1,453), corresponding to a 26.2% increase in sales. Adjusted for exchange rate movements, net sales increased by 19.2%.
• Operating income was SEK 154 m (151), a historically strong result.
• Inflation and high electricity prices continue to challenge, further price increases announced during the quarter.

January 1 – September 30

• Net sales amounted to SEK 5,002 m (3,509), corresponding to a 42.5% increase in sales. Adjusted for exchange rate movements, net sales increased by 36.2%.
• Operating income was SEK 296 m (169).
• A positive trend in both sales and income growth, after a pandemic-affected start of the year.

KEY FINANCIALS

	3 months Jul-Sep	3 months Jul-Sep	9 months Jan-Sep	9 months Jan-Sep	12 months Oct-Sep	12 months Jan-Dec
SEK m	2022	2021	2022	2021	21/22	2021
Net sales	1,834	1,453	5,002	3,509	6,553	5,061
Organic growth	19.2%	17.4%	36.2%	8.1%	35.0%	14.4%
Operating income 1)	154	151	296	169	406	279
Operating margin 1)	8.4%	10.4%	5.9%	4.8%	6.2%	5.5%
EBIT	132	135	226	122	276	173
EBIT margin	7.2%	9.3%	4.5%	3.5%	4.2%	3.4%
Income after financial items	120	128	192	90	235	133
Income after tax	87	102	142	68	151	77
Earnings per share after dilution	1.84	2.16	2.97	1.43	3.16	1.62
Return on capital employed, excluding goodwill	16.1%	10.8%	16.1%	10.8%	16.1%	14.4%

1) For reconciliation of alternative key financials, definition of key financials and glossary, see pages 31-33.

The Duni Group is a market leader in attractive, environmentally sound and functional products for table setting and take-away. The Group markets and sells two brands, Duni and BioPak, which are represented in more than 40 markets. Duni has around 2,200 employees in 21 countries, its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. Duni is listed on the NASDAQ Stockholm under the ticker name "DUNI". Its ISIN code is SE0000616716. This information is information that Duni AB is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person, at 07:45 CET on October 27, 2022.

"We can see that the recovery in the HoReCa market, which already started in the second quarter, continues, resulting in a 26% increase in sales in the third quarter."

Sales growth of 26% in third quarter

The third quarter was the first full quarter since the start of the pandemic that was not affected by any restrictions. We can see that the recovery in the HoReCa market, which already started in the second quarter, continues, resulting in a 26.2% increase in sales in the third quarter. All regions are growing, but the Rest of World region, with BioPak Australia, stands out with an increase of 61%.

Group sales in the quarter amounted to SEK 1,834 m (1,453). At fixed exchange rates, sales increased compared with the third quarter of 2019 by 30.8%.

The Duni business area increased its sales by 16.3% at fixed exchange rates, compared with the same period last year. The increase comes mainly from the fact that there were no restrictions during the quarter, but also from implemented price increases.

The BioPak business area grew by 23.2% at fixed exchange rates, due to price increases and increased volumes. The Australian market in particular had a strong growth during the quarter.

Operating income of SEK 154 m – all-time high

Operating income for the quarter amounted to SEK 154 m (151), which is the historically best operating income reported for the third quarter. Just as in the second quarter, the Duni business area in particular contributed to the improvement, increasing its operating income to SEK 115 m (96). Operating income for the BioPak business area fell to SEK 39 m (50). This downturn is due to increased warehousing costs and high freight and energy costs in European business. The European market continues to be more affected by these factors than the Australian business, which are making a positive contribution.

Price increases for the quarter amounted to approximately SEK 170 m, but do not fully compensate for the strong inflationary pressure that is now taking effect in all markets. Further price increases have therefore been announced and are expected to take full effect from the beginning of next year.

Science Based Targets – an important step forward

During the quarter, we have committed to set Science Based Targets (SBT) to ensure the continued work to reduce greenhouse gas emissions, and are therefore taking the next step towards the overall goal of achieving net zero carbon dioxide emissions for Scope 1 & 2 by 2030. Joining the SBT initiative means that the Group's climate work becomes more transparent and also reviewed by external experts. We see a slightly higher Carbon Intensity Index for the quarter as a result of increased production but continued good development for the full year 2022 thanks to the transition to renewable electricity for all production units in Europe.

Current situation in Europe

We see a strong concern in the world around us and a difficult situation to assess, especially in Europe, where increased inflation driven by dramatic energy prices, among other things, can affect our end consumers' consumption patterns. At the same time, we are experiencing a great desire, after more than two years of restrictions, to once more be able to meet up and socialize over food and drink.

Robert Dackeskog, President and CEO, Duni Group

This is Duni Group

Duni Group / Interim report – Q3 2022

Duni Group is a leading supplier of inspiring tabletop concepts and attractive, creative and environmentally smart singleuse items for food and beverages. Our offering includes high-quality products, such as napkins, table covers, candles and other tabletop accessories, along with packaging products and systems for the growing take-away market.

All of the company's concepts should contribute to creating an elevated experience where people come together to enjoy food and drink. And they should be able to do so with a clear conscience environmental sustainability and circular options are a matter of course.

Two business areas

The business is divided into two business areas: Duni and BioPak. Each business area has full responsibility for its respective value chain. Products are sold through a joint sales force, with the regions supporting the business areas. Duni and BioPak are responsible for their respective brand strategies as well as their own marketing communications, product development and innovation.

2,252

The Group has 2,252 employees in 21 countries. The head office is located in Malmö. Tissue for napkins and table covers is manufactured in Sweden, while conversion to finished products takes place in Germany, Poland, Thailand and New Zealand. The Group has sales offices in Australia, Finland, France, United Arab Emirates, Netherlands, New Zealand, Poland, Switzerland, Singapore, Spain, UK, Sweden, Thailand, Czech Republic, Germany, USA and Austria.

Production units Sales offices

FINANCIAL TARGETS

*Rolling 12 months, Oct-Sep 2021/2022

Net sales

SEK 6,553 m

Sales growth

35.0 %

Duni AB (publ) • Box 237 • SE-201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 (0)40-10 62 00 • www.dunigroup.se Registration number: 556536-7488 The Duni Group's target is to achieve average organic growth in sales in excess of 5% per year over a business cycle. In addition, the Group continuously evaluates acquisition opportunities to reach new emerging markets or strengthen its position in existing markets.

Dividend 2021

0

It is the Board of Directors' long-term intention for dividends to amount to at least 40% of income after tax.

Operating margin

6.2 %

3 The target is for the Group's operating margin to be at least 10%. Profitability is to be increased through sales growth, continued focus on premium products and continued improvements within purchasing and production.

Three sustainability goals by 2030

Becoming circular at scale

Goal 2030:

• fully circular operations
• environmentally friendly
• materials and suppliers
• efficient operation
• relevant solutions for reuse, recycling and composting
• no virgin plastic for single-use products.

Interim target 2025:

• reduction of virgin fossil-based plastic in single-use products by 50% compared with 2019 as a base year
• a large number of end-of-life solutions
• FSC®-certified products: 100% for Duni and 75% for BioPak Europe.

Activities during the quarter:

• Partnerships in multi-use solutions including BioInnovation
• Participation in projects for circular business development and circular e-commerce deliveries for retailers
• Engagement in "Cleanup Week" at several locations across Europe

Going net zero

Goal 2030:

zero vision for greenhouse gases according to the GHG protocol Scope 1 and Scope 2

• science-based targets that are approved, measured and communicated quarterly, including the GHG protocol Scope 3
• we will measure impact across our value chain
• transparent reporting of results

Interim target 2025:

• activities in accordance with the approved science-based targets of the international collaboration Science Based Targets initiative, SBTi
• 60% reduction in carbon intensity with 2019 as base year.

Activities during the quarter:

• Committed to set Science Based Targets
• Evaluation of future energy solutions for Rexcell
• Standardization of reporting of production waste in Scope 3 work

Living the change

Goal 2030:

• a trusted sustainability leader
• we will be a committed partner for our key stakeholders
• we will be the trusted expert with the best recognized ecosmart solutions
• our communications will have a high degree of transparency, integrity and openness.

Interim target 2025:

• key stakeholders see us as a leading sustainability company
• achieve 75 points in the EcoVadis system
• all employees trained in sustainability.

Activities during the quarter:

• Round table discussions about disposable and multi-use solutions at Almedalen
• New and updated policies for better governance
• E-learning platform for sustainability launched
• Facilitators for climate workshops trained

Carbon intensity index Scope 1 & 2 (tons CO2 per ton self-produced product)

Slightly higher emissions in the third quarter compared with the second quarter due to increased production, but continued good trend overall thanks to the switch to renewable electricity in all European factories.

40

100 Base year 2019

Net sales

July 1 – September 30

Compared with the same period of the previous year, net sales increased by SEK 381 m to SEK 1,834 m (1,453). At fixed exchange rates, this corresponds to a 19.2% increase. Market consumption during the quarter was more in line with historical patterns than in a long time. Restaurant visits have returned, the catering and event industry has recovered and movement in society is largely as it was before. International travel is still lower than historical levels, but is significantly higher than in the previous eight quarters. Normalization has meant that sales of napkins and serving products are back at pre-pandemic volumes. It is worth noting that table covers are falling in volume and environmentally sound packaging is increasing, in line with previously reported underlying trends. But volatile demand has put pressure on delivery capacity, especially for napkins, and demand was not fully met in the quarter. Compared with the third quarter of the previous year, the increase in net sales apart from currency was driven primarily by the continued recovery in the Duni business area, strong growth in the Australian market in the BioPak business area, and price increases in both business areas.

January 1 – September 30

Compared with the same period of the previous year, net sales increased by SEK 1,492 m to SEK 5,002 m (3,509). At fixed exchange rates, this corresponds to a 36.2% increase. The beginning of the year was still characterized by restrictions linked to the Covid-19 pandemic, which had a negative impact on the Duni business area's sales compared with historical levels. On the other hand, the same period last year saw more limiting restrictions, and sales to the customer segments, hotel and restaurant, improved significantly during the first months of the year. Virtually all restrictions were lifted in the second quarter, and in the third quarter the market's consumption patterns were almost in line with those before the pandemic. For the BioPak business area, the eased restrictions have resulted in reduced demand for take-away products in the European markets, while serving products have recovered. In the Australian market, the continuously high demand for sustainable packaging solutions continues to drive high growth rates. Price increases in both business areas also boosted sales significantly.

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 2021	% fixed exchange rates	9 months Jan-Sep 2022	9 months Jan-Sep 2021	% fixed exchange rates	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Duni	1,043	857	16.3%	2,817	1,766	53.8%	3,713	2,662
BioPak	791	596	23.2%	2,185	1,744	18.4%	2,840	2,399
Duni Group	1,834	1,453	19.2%	5,002	3,509	36.2%	6,553	5,061

NET SALES

Income

July 1 – September 30

Operating income amounted to SEK 154 m (151), with an operating margin of 8.4% (10.4%). The gross margin was 19.8% (23.2%). Earnings for the quarter were on par with the previous year and historical levels, and are explained in many ways by the same parameters as previous quarters, but with increasing effects in both a positive and negative direction. The extreme inflationary pressure that has established itself in the last year for most input materials and logistics services stabilized at historically high levels during the quarter. This has enabled price increases, albeit temporarily, to catch up and better balance the cost increases. Exceptions are evident particularly in energy and gas prices, which continued to increase sharply compared with the same period last year. As a consequence of volatile demand, income was adversely affected by high warehousing costs in the BioPak business area and poorer delivery performance in the Duni business area. Income is also strengthened by an improved contribution margin from fixed costs through increased volumes in production and a strong positive trend in the Australian market.

As a result of actual and expected energy and gas price increases, additional price increases have been announced for the entire Duni business area's range and parts of the BioPak business area's range. These will be implemented during the fourth quarter, with limited effect within the quarter, before taking full effect from the beginning of next year.

Income after financial items amounted to SEK 120 m (128). Income after tax was SEK 87 m (102).

January 1 – September 30

Operating income amounted to SEK 296 m (169), with an operating margin of 5.9% (4.8%). The gross margin was 18.3% (18.1%). The gradual easing and ultimate lifting of the restrictions during the year has enabled a normalized consumption pattern and significant increases in sales for the Duni business area, which is the single biggest contributor to the stronger income figure. Growth in the BioPak business area in the Australian market is also a positive factor. High inflationary pressure and deferred price increases, as well as increased costs of marketing activities and lower levels of government support of SEK 39 m (104) than in the comparative period, have a negative impact on income.

The operation in Russia was divested in April, resulting in a restructuring cost of SEK 9 m in the first quarter. During the year, SEK 14 m has also been reported as restructuring costs relating to accrued costs to evaluate strategic alternatives in order to optimize the long-term value of the BioPak Group, see also the section headed "Other information about BioPak". Restructuring costs are not included in operating income. Instead, these are recognized as one-off expenses along with amortization of intangible assets identified in connection with business acquisitions and fair value allocations. For the bridge between EBIT and operating income, please see page 31.

Income after financial items amounted to SEK 192 m (90). Income after tax was SEK 142 m (68).

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 20221)	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 20221	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Duni	115	108	96	206	192	9	290	93
BioPak	39	34	55	90	80	160	116	186
Duni Group	154	141	151	296	273	169	406	279

OPERATING INCOME

1)Reported operating income 2022 converted to 2021 exchange rates.

Duni business area

The Duni business area stands for what the Group is traditionally associated with, such as innovative solutions for the set table, primarily napkins, table covers and candles. The business area's products and services are sold under the Duni brand. The customers are mainly hotels and restaurants, the so-called HoReCa market, where sales are largely made through wholesalers. Retail and various types of specialist trade are also important customer groups. The business area is a European market leader in the premium segment for napkins and table covers. It accounted for approximately 56% (50%) of the Group's net sales during the period from January 1 to September 30, 2022.

JULY 1 – SEPTEMBER 30

Net sales

1,043 Net sales amounted to SEK 1,043 m (857).

Operating income

115 Operating income was SEK 115 m (96).

Operating margin

11.0 % The operating margin was 11.0% (11.2%).

JANUARY 1 – SEPTEMBER 30

Net sales

2,817 Net sales amounted to SEK 2,817 m (1,766).

Operating income

206 Operating income was SEK 206 m (9).

Duni AB (publ) • Box 237 • SE-201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 (0)40-10 62 00 • www.dunigroup.se Registration number: 556536-7488

Operating margin

7.3%

The operating margin was 7.3% (0.5%).

Duni business area

Net sales

Net sales for the quarter amounted to SEK 1 043 m (857). At fixed exchange rates, this corresponds to a sales increase of 16.3%. Net sales for the period from January to September amounted to SEK 2,817 m (1,766), corresponding to a 53.8% increase in sales at fixed exchange rates. As restrictions were eased in Europe, the Duni business area experienced normalized sales volumes during the first half of the year, reaching volumes in line with pre-pandemic levels in the third quarter. Restrictions to curb the Covid-19 pandemic have had a major impact in recent years on the business area's biggest customer segments, hotel and restaurant. The sharp increase in sales this year is primarily due to the fact that the restrictions have been less limiting than last year. The increase in volume can be seen in all regions and for all product groups, except for candles, where sales volumes are falling. Sales are strengthened by price increases that were implemented at the end of the previous year and during this period. As inflationary pressure remains high, additional price increases have been announced, which will be implemented during the fourth quarter, with full effect from the beginning of next year. The rapid market recovery, combined with higher sick leave in production, has resulted in operational strains, falling inventories and the high demand in the third quarter not being met in full. The business area is focusing on maximizing production volumes in order to better meet the high demand.

Income

Operating income in the quarter was SEK 115 m (96) and the operating margin was 11.0% (11.2%). Operating income for the period from January to September was SEK 206 m (9) and the operating margin was 7.3% (0.5%). The improvement is almost SEK 200 m, with the majority of the income recovery in the first half of the year, but also continuing to strengthen in the third quarter. The business area's vertical integration entails a high proportion of fixed costs that, at low volumes, are not absorbed and operational leverage deteriorates. When volumes in the period have recovered and the comparative period has increased significantly, the economies of scale improve, which is the main reason for the stronger income figure. Throughout the period, all input goods, energy sources and logistics services have been under high cost pressure, putting major pressure on margins. The price increases decided on during the previous year and implemented during the period made a positive contribution to an increasing degree, and largely compensated for the cost increases. Cost and price increases were relatively balanced during the third quarter. But energy prices have increased sharply and faster than before, which has resulted in further price increases being announced. During the quarter, emission rights at the Skåpafors paper mill were sold off at a sales value of approximately SEK 5 m; this is reported in "Other operating income". Successful work to achieve the overall goal of net zero carbon dioxide emissions for Scope 1 & 2 by 2030 is resulting in a surplus of allocated emission rights. This sale means that efforts to reduce emissions can be kept at a high and accelerating level.

Duni AB (publ) • Box 237 • SE-201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 (0)40-10 62 00 • www.dunigroup.se Registration number: 556536-7488

BioPak business area

The BioPak business area offers environmentally sound concepts for meal packaging and serving products for applications including take-away, ready-to-eat meals, and various types of catering. The business area's customers are various types of restaurants with take-away concepts and companies that are active in the health and patient-care sectors. Stores and other food producers are also major customer groups. The business area's products and services are sold under both the Duni and BioPak brands, but the goal is for the business area to primarily represent the BioPak brand. The business area has a market-leading position in Australia. It accounted for approximately 44% (50%) of the Group's net sales during the period from January 1 to September 30, 2022.

1 JULY – 30 SEPTEMBER

Net sales

791 Net sales amounted to SEK 791 m (596).

Operating income

39

Operating income was SEK 39 m (55).

Operating margin

5.0% The operating margin was 5.0% (9.3%).

JANUARY 1 – SEPTEMBER 30

Net sales

2,185 Net sales amounted to SEK 2,185 m (1,744).

Operating income

90 Operating income was SEK 90 m (160).

Duni AB (publ) • Box 237 • SE-201 22 Malmö • Sweden • Visiting address Östra Varvsgatan 9 A • Tel +46 (0)40-10 62 00 • www.dunigroup.se Registration number: 556536-7488

Operating margin

4.1% The operating margin was 4.1% (9.2%).

BioPak business area

Net sales

Net sales for the quarter amounted to SEK 791 m (596). At fixed exchange rates, this corresponds to a sales increase of 23.2%. Net sales for the period from January to September period amounted to SEK 2,185 (1,744), corresponding to an 18.4% increase in sales at fixed exchange rates. The third quarter continues to show strong growth, primarily due to sales outside Europe and specifically in Australia, which consolidates its position as the single biggest market in BioPak. The take-away segment, which is the dominant segment in Europe, has seen a decline in growth and therefore has a relatively higher impact on sales in this region. Products such as cups and other products related to catering, by contrast, performed strongly during the quarter. Several major new contracts have also been secured in Australia, reflecting good competitiveness in an industry that is growing, but is also exposed to competition. As there have been continued investments in stocks, delivery capacity is good. This is in contrast with the challenges in the supply chain of recent years. Nevertheless, the focus is now on adjusting stocks to a lower level, as there are positive signs of stability in the supply chain.

Income

Operating income in the quarter amounted to SEK 39 m (55), and the operating margin was 5.0% (9.3%). Operating income for the period from January to September was SEK 90 m (160) and the operating margin was 4.1% (9.2%). The operating margin drops compared to the very strong quarter last year, when not only container prices put pressure on margins, but new cost increases in almost all materials have a negative impact. New price increases have been initiated during the quarter, taking effect at the end of the fourth quarter and at the beginning of 2023. It is primarily Europe that has been adversely affected by dramatic cost increases in the transport sector, but also in energy supply for suppliers in Europe. The high stock levels built up during the year have resulted in a clear improvement in delivery capacity, but entail an increased cost of stock management. This balance between delivery capacity and cost has proved to be a challenge during the extreme volatility in demand for different products seen in recent years. The focus is now on controlling, but clearly reducing stock levels, while at the same time securing supplies to customers.

OPERATING INCOME QUARTER, SEK M OPERATING INCOME LAST 12 MONTHS (LTM), SEK M

Other information about BioPak

As previously communicated, the Board of Directors has decided to evaluate various strategic alternatives in order to optimize the long-term value of BioPak Pty Ltd and its subsidiary, "BioPak Group". Such strategic alternatives include continued assessment of the prospects for a potential future market listing of BioPak Pty Ltd on the Australian Securities Exchange (ASX), and evaluation of the opportunities for and interest in private equity investments. All strategic alternatives may include the divestment of part of existing shareholdings in BioPak Pty Ltd, and are being evaluated within the framework of ensuring that the BioPak Group continues to be consolidated within the Duni Group.

BioPak Group comprises approximately 50% of the BioPak business area and consists of the Australian parent company BioPak Pty Ltd and its subsidiaries in Australia, New Zealand, Singapore and the UK. Net sales for this part of the business in 2021 amounted to approximately SEK 1,200 m, with an operating margin of just below 10%.

An independent adviser, Luminis Partners, has been engaged to continuously monitor market conditions, while working to optimize long-term value, taking into account the full potential of the business and prevailing market conditions.

An incentive program is being implemented in the BioPak Group, which includes an opportunity for approximately 20 employees in the BioPak Group to acquire shares in BioPak Pty Ltd at a value corresponding to up to AUD 4 m. This corresponds to approximately 2% of all shares in BioPak Pty Ltd. The value corresponds to the fair market value for an incentive program of this nature and with these conditions, according to the valuation certificate from Lonergan Edwards & Associates Limited, which is an independent valuation institute based in Sydney, Australia. The shares will be subject to vesting conditions for a period of five years from acquisition.

Accrued costs for this strategic work amounts to SEK 14 m and are included in restructuring costs, which are not part of operating income. Duni Group intends to report back with an update when there is further information to communicate.

Financial overview

Cash flow and funding

The Group's cash flow from operating activities was SEK -183 m (-70) for the period from January 1 to September 30. Accounts receivable amounted to SEK 1,162 m (891) and accounts payable to SEK 668 m (506), while inventory was valued at SEK 1,669 m (1,033). Inflation in input goods is a major contributory factor to the higher inventory value. However, the BioPak business area in particular has invested in a relatively high level of security, in order to guarantee deliveries in a volatile environment with major disruptions in the supply chain over the last 2.5 years. Efforts have been initiated to reduce stock levels in a controlled manner in the coming quarters, without risking delivery capacity. Accounts receivable and accounts payable have developed in line with historical levels in terms of the number of days outstanding.

Cash flow including investing activities amounted to SEK m -274 (-127). Net investments for the period amounted to SEK 67 m (37). Depreciation for the period amounted to SEK 212 m (204), of which depreciation of right-of-use assets amounted to SEK 59 m (48).

The Group's interest-bearing net debt as at September 30, 2022 was SEK 1,745 m. The Group's interest-bearing net debt as at September 30, 2021 was SEK 1,466 m. A short-term loan facility was reported at the end of the year. During the first quarter, a three-year loan facility of EUR 150 m and a two-year loan facility of EUR 30 m were signed. In the second quarter an additional three-year loan facility of EUR 25 m was signed. All the loans are sustainability-linked and again reported as long-term.

Net financial items

Net financial items for the period from January 1 to September 30 amounted to SEK -33 m (-32). Income from participations in associated companies amounted to SEK -4 m (-1).

Taxes

The total reported tax expense for the period from January 1 to September 30 was SEK 50 m (22), equivalent to an effective tax rate of 26.0% (24.5%). The tax for the year includes adjustments and non-recurring effects from the previous year of SEK -2.1 m (3.3).

Earnings per share

This year's earnings per share before and after dilution amounted to SEK 2.97 (1.43).

The share

As at September 30, 2022, the share capital amounted to SEK 58,748,790 divided into 46,999,032 outstanding ordinary shares. The quotient value of the shares is SEK 1.25 per share.

Shareholders

Duni AB (publ) is listed on NASDAQ Stockholm under the ticker name "DUNI". The Group's three largest shareholders are Mellby Gård AB (29.99%), Polaris Capital Management LLC (10.08%) and Carnegie Fonder (9.54%).

Personnel

On September 30, 2022, there were 2,252 (2,230) employees. 874 (899) of the employees were engaged in production. The Duni Group's production plants are located in Bramsche and Wolkenstein, Germany, in Poznan, Poland, in Bengtsfors, Sweden, in Bangkok, Thailand and in Auckland, New Zealand.

Acquisitions

No acquisitions were made during the period.

New establishment

No new establishment was carried out during the period.

Divestments

At the beginning of the year, the Duni Group had a sales company with 17 employees in Moscow, Russia. Sales from there accounted for less than one per cent of the Group's annual sales. In April, the company was sold to local management, and Duni RUS LLC is therefore no longer a subsidiary of Duni AB. The cost of this divestment amounted to approximately SEK 9 m and is part of the reported restructuring cost. This mainly refers to writedowns of inventories and accounts receivable. The Group has no operations or employees in Ukraine.

Risk factors for the Duni Group

There are a number of risk factors that can affect the Group's operations, both linked to business risks and financial.

Business risks

The business risks are divided into strategic and environmental risks, operational risks and sustainability risks. These risks affect, among other things, the company's business model and long-term strategic planning. They may have a negative impact on the Group's results or reputation.

Strategic and environmental risks refer to risks and external factors that have an impact on the company's business and market position. The Board and management develop strategies to manage these risks, which is done through strategy meetings. This includes risks related to acquisitions, suppliers, regulations and laws. External factors that may also affect operations include raw material prices, transport costs, local restrictions due to a pandemic, a worsening economy, and changes in market demand and taxes. Events that could lead to fewer restaurant visits, reduced demand and increased price competition, affect volumes and gross margins, among other things through increased discounts and customer bonuses. The development of a varied and attractive range is important for the Group to achieve good sales and earnings development.

Russia's invasion of Ukraine resulted in a deterioration in geopolitical conditions. The Group closely monitors developments and complies with all imposed sanctions. Uncertainty is high and it is currently difficult to assess the consequences and long-term effects for the Group because of this. At present, the direct impact is limited. No inputs and no imports come from these two countries. Indirect effects such as higher energy prices resulting in paper mills across Europe not running their machines at full capacity is resulting in a decline in the general availability of tissue and contributing to an increase in tissue prices. Another example is in the logistics industry in Europe, which has a shortage of truck drivers, keeping transport prices at high levels.

Operational risks are normally handled by the respective operating unit and may refer to production interruptions, IT breakdowns, fire or other risks due to insufficient processes or handling errors. In many cases, the company can control this type of risk itself.

Sustainability risks include environmental, human rights and anti-corruption risks. This also includes risks such as not being able to keep up with external requirements regarding material development and reporting or legal requirements. These risks are managed through active prevention measures. The company also has activities and control mechanisms to counter them, for example through audits of suppliers under our Code of Conduct. To read more about our extensive sustainability work, see the Sustainability Report 2021 section

Financial risks

The Group's financial management and its management 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 risks and liquidity risks. These risks are controlled in an overall risk management policy that focuses on unforeseen events in the financial markets and endeavors to minimize potential adverse effects on the Group's financial results. The risks for the Group are also related to the Parent Company in all essential respects. The Group's management of financial risks is described in more detail in the Annual and Sustainability Report 2021.

The Group's contingent liabilities have risen since the start of the year by SEK 17 m to SEK 67 m (57). In addition to currency effects, the increase can primarily be explained by a guarantee for a new vehicle lease contract in Germany.

Risks related to Covid-19

The Covid-19 pandemic had a major impact on the Duni Group. The social restrictions introduced to prevent the spread of infection resulted in government agencies restricting people's mobility. The Duni business area sells its products primarily in the HoReCa sector. Hotel, restaurant and catering businesses were all significantly affected by these restrictions. They were forced to operate under severe restrictions, if they were allowed to open at all. Throughout the pandemic, there was a volatile market and the level of restrictions varied between the quarters. There was a clear correlation between sales and the level of restrictions. The Duni business area is vertically integrated, and owns its own paper mill and conversion plants that produce napkins and table covers. A rapid, unscheduled decrease in volume means that fixed costs are not fully absorbed, with a negative impact on income. The BioPak business area offers environmentally sound concepts for meal packaging and serving products for applications including take-away. The business area does not have in-house production, instead purchasing its products primarily from China and Europe. Many restaurants had to convert their operations during the pandemic so they could offer more take-away than before, which had a positive impact on the BioPak business area. There is still some uncertainty about the more long-term effects of the pandemic, such as behavioral patterns concerning business travel, events and catering, as well as other market conditions.

Transactions with related parties

No significant transactions with related parties took place during the third quarter of 2022.

Major events during the period

No significant events have occurred during the period.

Major events since September 30

No significant events have occurred since the balance sheet date.

Interim reports

Q4 February 14, 2023 Q1 April 21, 2023

2023 Annual General Meeting

The Annual General Meeting of Duni AB will be held in Malmö at 3 PM on May 16, 2023. More information will be available on Duni's website shortly.

Parent Company

Net sales for the period from January 1 to September 30 amounted to SEK 1,087 m (770). Income after financial items amounted to SEK -32 m (14). Increased activities and lower government grants than last year are the main reasons for the poorer income figure. The interest-bearing net debt amounted to SEK -287 m (-351), of which a

net asset of SEK 1,930 m (1,642) derives from subsidiaries. Net investments amounted to SEK 13 m (13) and depreciation and amortization amounted to SEK 16 m (16).

Accounting principles

The 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 have been prepared in accordance with RFR 2, Accounting for Legal Entities, and the Swedish Annual Accounts Act. Accounting principles have been applied as reported in the Annual Report for the year ended on December 31, 2021.

Information in the report

Duni AB (publ) publishes this information in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information will be submitted for publication on October 27 at 07:45 AM.

At 10:00 AM on Thursday, October 27, the report will be presented at a telephone conference, which can also be followed online. To participate in the telephone conference, call +46 (0)8-566 426 95. To follow the presentation online, please visit this link:

https://onlinexperiences.com/Launch/QReg/ShowUUID=B6B622EE-B680-4784-A19F-ED28ADC5B3C1

Both a Swedish and an English version of this report have been prepared. In the event of any discrepancy b etween the two, the Swedish version will apply.

Malmö, October 26, 2022

Robert Dackeskog, President and CEO

For more information, please contact:

Robert Dackeskog, President and CEO, +46 (0)40 10 62 00 Magnus Carlsson, CFO, +46 (0)40 10 62 00 Helena Haglund, Group Accounting Manager, +46 (0)734 19 63 04

Duni AB (publ) Box 237 SE-201 22 Malmö Phone: +46 (0)40 10 62 00 www.dunigroup.com Company registration number: 556536-7488

Auditor's report

Duni AB (publ) corp. reg. no. 556536-7488

Introduction

We have reviewed the condensed interim financial information (interim report) of Duni AB (publ) as of 30 September 2022 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, 26 October 2022

PricewaterhouseCoopers AB

Carl Fogelberg Authorized Public Accountant

Financial reports

CONSOLIDATED INCOME STATEMENTS

SEK m (Note 1)	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Income	1,834	1,453	5,002	3,509	6,553	5,061
Cost of goods sold	-1,471	-1,117	-4,084	-2,875	-5,342	-4,133
Gross profit	364	337	918	635	1,212	928
Sales costs	-147	-125	-441	-369	-576	-505
Administrative expenses	-78	-64	-252	-190	-333	-271
Research and development expenses	-1	0	-1	0	-2	-1
Other operating income	14	8	61	105	88	133
Other operating expenses	-20	-20	-59	-58	-113	-112
EBIT	132	135	226	122	276	173
Financial income	4	0	14	1	15	2
Financial expenses	-14	-7	-43	-32	-51	-40
Income from participation in associated
companies	-2	-1	-4	-1	-6	-2
Net financial items	-12	-7	-33	-32	-41	-39
Income after financial items	120	128	192	90	235	133
Income tax	-33	-27	-50	-22	-84	-56
Net income	87	102	142	68	151	77
Net income attributable to:
- Equity holders of the Parent Company	86	102	140	67	148	76
- Non-controlling interests	1	0	2	1	3	1
Earnings per share attributable to equity holders of the Parent Company:
Before and after dilution (SEK)	1.84	2.16	2.97	1.43	3.16	1.62
Average number of shares before and after
dilution ('000)	46,999	46,999	46,999	46,999	46,999	46,999

STATEMENT OF COMPREHENSIVE INCOME

SEK m (Note 1)	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Net income	87	102	142	68	151	77
Other comprehensive income: Items that will not be reclassified to profit or loss:
Remeasurement of net pension obligation*	22	8	79	26	77	24
Total	22	8	79	26	77	24
Items that may be reclassified subsequently to profit or loss:
Translation differences for the period when translating foreign operations	-28	-13	20	-11	46	14
Cash flow hedging	14	0	30	2	32	4
Total	-14	-13	50	-9	77	18
Other comprehensive income for the period, net of tax	8	-4	129	17	154	43
Sum of comprehensive income for the period	96	97	271	85	305	120
- Of which non-controlling interests	2	-2	8	-6	12	-2

*Post-employment benefit obligations are recalculated each quarter since interest rates vary depending on market circumstances; a lower rate of interest gives rise to a higher cost in comprehensive income and a higher pension debt, while a higher rate of interest gives rise to a lower cost in comprehensive income and a lower pension debt than in the preceding quarter.

CONSOLIDATED QUARTERLY INCOME STATEMENTS IN BRIEF

SEK m	2022			2021				2020
Quarter	Jul Sep	Apr Jun	Jan Mar	Oct Dec	Jul Sep	Apr Jun	Jan Mar	Oct Dec
Income	1,834	1,724	1,443	1,552	1,453	1,124	932	1,181
Cost of goods sold	-1,471	-1,441	-1,172	-1,258	-1,117	-930	-828	-968
Gross profit	364	283	271	294	337	194	104	213
Sales costs	-147	-145	-148	-136	-125	-127	-117	-118
Administrative expenses	-78	-97	-78	-80	-64	-67	-59	-65
Research and development expenses	-1	0	0	-1	0	0	0	-2
Other operating income	14	43	4	28	8	64	35	54
Other operating expenses	-20	-17	-22	-54	-20	-21	-19	-22
EBIT	132	67	26	51	135	43	-56	59
Financial income	4	9	1	1	0	1	0	0
Financial expenses	-14	-14	-15	-7	-7	-9	-16	-13
Income from participation in associated companies	-2	-2	-1	-1	-1	-	-	-
Net financial items	-12	-7	-14	-8	-7	-8	-16	-12
Income after financial items	120	60	12	43	128	34	-72	47
Income tax	-33	-11	-6	-34	-27	-16	21	-12
Net income	87	49	6	9	102	18	-51	35
Income attributable to:
- Equity holders of the Parent Company	86	48	5	9	102	18	-52	35
- Non-controlling interests	1	1	1	0	0	0	1	0

CONSOLIDATED BALANCE SHEET IN BRIEF

SEK m	September 30, 2022	December 31, 2021	September 30, 2021
ASSETS
Fixed assets
Goodwill	2,080	2,010	2,016
Other intangible assets	319	344	361
Tangible assets	1,098	1,124	1 140
Financial assets	210	184	146
Total fixed assets	3,708	3,662	3,663
Current assets
Inventory	1,669	1,253	1,033
Accounts receivable	1,162	860	891
Other receivables	330	225	312
Cash and cash equivalents	295	396	305
Total current assets	3,457	2,734	2,541
TOTAL ASSETS	7,165	6,396	6,204
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the Parent
Company	2,892	2,630	2,616
Non-controlling interests	93	85	81
Total equity	2,985	2,714	2,697
Long-term liabilities
Long-term financial liabilities	1,584	159	837
Other long-term liabilities	583	648	627
Total long-term liabilities	2,167	807	1,464
Short-term liabilities
Accounts payable	668	723	506
Short-term financial liabilities	407	1,455	767
Other short-term liabilities	936	697	770
Total short-term liabilities	2,012	2,874	2,043
TOTAL EQUITY AND LIABILITIES	7,165	6,396	6,204

CHANGE IN THE GROUP'S EQUITY

Attributable to equity holders of the Parent Company
	Share capital	Other contribut ed capital	Reserves1)	Retained earnings including net	Total equity, shareholder s of the Parent	Non controlling interests	Total equity
SEK m				income	Company
Opening balance January 1, 2021	59	1,681	82	719	2,541	87	2,628
Net income	-	-	-	67	67	1	68
Other comprehensive income for the period. net after tax	-	-	-3	26	26	-6	17
Sum of comprehensive income for the period	-	-	-3	93	91	-6	85
Remeasurement of liability to minority shareholders	-	-	-	-16	-16	-	-16
Opening balance October 1, 2021	59	1,681	80	796	2,616	81	2,697
Net income	-	-	-	9	9	-	9
Other comprehensive income for the period. net after tax	-	-	23	-2	22	4	25
Sum of comprehensive income for the period	-	-	23	7	31	4	34
Remeasurement of liability to minority shareholders	-	-	-	-17	-17	-	-17
Opening balance January 1, 2022	59	1,681	103	786	2,630	85	2,714
Net income	-	-	-	140	140	2	142
Other comprehensive income for the period. net after tax	-	-	44	79	123	6	129
Sum of comprehensive income for the period	-	-	44	218	263	8	271
Remeasurement of liability to minority shareholders	-	-	-	-	-	-	-
Closing balance September 30, 2022	59	1,681	148	1,005	2,892	93	2,985

1)Of the total reserves, SEK 13 m relates to a fair value reserve and consists of revaluation of land according to previous accounting principles. The revalued amount was adopted as acquisition value in accordance with the transitional rules in IFRS 1 and has not changed since.

CONSOLIDATED CASH FLOW STATEMENT

	9 months Jan-Sep	9 months Jan-Sep
SEK m	2022	2021
Operating activities
Reported EBIT	226	122
Adjusted for items not included in cash flow, etc.	196	154
Paid interest and tax	-85	-111
Change in working capital	-520	-234
Cash flow from operating activities	-183	-70
Investments
Acquisitions of fixed assets	-67	-37
Sales of fixed assets	0	0
Acquisition of subsidiaries	-25	-
Acquisition of associated companies	-	-21
Cash flow from investments	-91	-57
Financing
Loans raised1)	139	223
Repayment of debt1)	-16	-97
Net change, overdraft facilities and other financial liabilities	101	-9
Net change in lease liability	-61	-51
Cash flow from financing	163	67
Cash flow for the period	-111	-60
Cash and cash equivalents, opening balance	396	364
Exchange difference, cash and cash equivalents	10	2
Cash and cash equivalents, closing balance	295	305

1) Loans raised and repayments on loans within the adopted credit facility are recognized at their gross amounts for loans with maturities exceeding 3 months, in accordance with IAS 7.

KEY FINANCIALS IN BRIEF

	9 months Jan-Sep 2022	9 months Jan-Sep 2021
Net sales, SEK m	5,002	3,509
Gross profit, SEK m	918	635
Operating income, SEK m	296	169
Operating EBITDA, SEK m	461	326
Operating profit, EBIT, SEK m	226	122
EBITDA, SEK m	437	326
Interest-bearing net debt, SEK m	1,745	1,466
Number of employees	2,252	2,230
Sales growth	42.5%	5.7%
Organic growth	36.2%	8.1%
Gross margin	18.3%	18.1%
Operating margin	5.9%	4.8%
Operating EBITDA margin	9.2%	9.3%
EBIT margin	4.5%	3.5%
EBITDA margin	8.7%	9.3%
Return on equity	4.8%	2.5%
Return on capital employed1)	8.8%	5.4%
Return on capital employed, excluding goodwill1)	16.1%	10.8%
Interest-bearing net debt/equity	58.5%	54.4%
Interest-bearing net debt/operating EBITDA1)	2.81	3.39

1) Calculated on the basis of the last twelve months and operating income.

Alternative key financials are described in definitions. For reconciliation of these, see Note 5.

PARENT COMPANY INCOME STATEMENTS IN BRIEF

SEK m (Note 1)	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021
Income	386	321	1,087	770
Cost of goods sold	-364	-298	-1,048	-705
Gross profit	22	23	39	65
Sales costs	-29	-23	-85	-76
Administrative expenses	-51	-42	-175	-128
Research and development expenses	-1	0	-2	-1
Other operating income	78	72	221	187
Other operating expenses	-11	-9	-31	-25
EBIT	8	21	-34	22
Revenue from participation in Group companies	-	-	12	3
Financial income	16	6	39	18
Financial expenses	-17	-7	-49	-29
Net financial items	-1	-1	2	-8
Income after financial items	6	21	-32	14
Income tax	-2	-4	5	-3
Net income	5	17	-27	11

STATEMENT OF COMPREHENSIVE INCOME

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021
Net income	5	17	-27	11
Other comprehensive income1):
Items that may be reclassified subsequently to profit or loss:
Cash flow hedging	10	2	16	1
Total	10	2	16	1
Other comprehensive income for the period, net of tax	10	2	16	1
Sum of comprehensive income for the period	15	18	-11	12
- Attributable to equity holders of the Parent Company	15	18	-11	12

1) The Parent Company does not have any items that "will not be reclassified to profit or loss".

PARENT COMPANY BALANCE SHEET IN BRIEF

SEK m	September 30, 2022	December 31, 2021	September 30, 2021
ASSETS
Fixed assets
Intangible assets	51	53	55
Tangible assets	24	25	24
Financial assets	3,730	3,340	3,308
Total fixed assets	3,805	3,418	3,387
Current assets
Inventory	144	128	120
Accounts receivable	163	114	127
Other receivables	667	330	331
Cash and bank balances	158	285	177
Total current assets	1,131	857	775
TOTAL ASSETS	4,936	4,275	4,142
EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity	83	83	85
Unrestricted equity	1,919	1,929	1,874
Total equity	2,002	2,013	1,959
Provisions	111	98	97
Long-term liabilities
Long-term financial liabilities	1,444	-	662
Other long-term liabilities	-	0	0
Total long-term liabilities	1,444	0	662
Short-term liabilities
Accounts payable	67	82	58
Short-term financial liabilities	281	1,431	729
Other short-term liabilities	1,032	651	637
Total short-term liabilities	1,380	2,164	1,425
TOTAL EQUITY, PROVISIONS AND LIABILITIES	4,936	4,275	4,142

Notes

Note 1 • Accounting and valuation principles

As of January 1, 2005, Duni applies the International Financial Reporting Standards (IFRS) as adopted by the European Union. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with the IFRS as adopted by the EU and with the related reference to Chapter 9 of the Swedish Annual Accounts Act. The Parent Company's financial statements are prepared in accordance with RFR 2, Accounting for Legal Entities, and the Swedish Annual Accounts Act. The accounting policies are the same as in the Annual Report for the year ended on December 31, 2021, with the addition that participations in associated companies are reported in accordance with the cost method in the Parent Company. The Group has received government support in respect of short-time work and support for fixed costs. This assistance has been recognized as revenue under the Other operating income line item.

Note 2 • Financial assets and liabilities

The Group has derivative instruments measured at fair value and held for hedging purposes that are classified at level 2. Level 2 derivative instruments consist of currency forward contracts and interest rate swaps, and are used for hedging purposes. Measurement of currency forward contracts at fair value is based on published forward prices on an active market. The measurement of interest rate swaps is based on forward interest rates produced from observable yield curves. The discounting has no material impact on the measurement of level 2 derivative instruments. The put option issued to the minority owners of BioPak Pty Ltd at the time of acquisition is classified at level 3, and its measurement is largely based on unobservable market data such as the discount rate and future cash flows. No financial assets or liabilities have been moved between the valuation categories. The valuation techniques are unchanged during the year. As described in greater detail in the Annual Report for the year ended on December 31, 2021, the financial assets and liabilities comprise items with short terms to maturity. The fair value is therefore in all essential respects considered to correspond to the carrying amount.

Note 3 • Segment reporting

Group management, which is the highest executive and decision-making body, decides on the allocation of resources within the Group and evaluates the results of operations. Group Management manages the performance of the business through the business areas on the basis of sales and operating income. The Group's operations are divided into two business areas, Duni and BioPak. Each business area has full responsibility for its respective value chain. Products are sold via a consolidated commercial organization divided into six regions. Each region is responsible for local sales and marketing of both brands, Duni and BioPak, to all customers. The regions are:

• NorthEast: Northern and Eastern Europe
• Central: Germany, Austria and Switzerland
• West: The Netherlands, Belgium, Luxembourg, the UK and Ireland
• South: France, Spain and Italy.

– Rest of World: All sales outside Europe with Australia accounting for over 50%, New Zealand and Thailand each at 10–15% and Singapore at just over 5% of the sales.

– Other Sales: External sales of tissue and airlaid materials from the Skåpafors factory and external sales of finance and accounting services from the finance function in Poznan are included in the Duni segment.

The Group also has a central marketing department responsible for branding strategy, marketing communications, product development and innovation. Group-wide functions such as accounting, HR, communications, sustainability, and IT are largely shared by the business areas, and the expenses for these are allocated by the percentage of sales of each business area, Duni and BioPak. The Duni business area has a vertically integrated business model for small paper-based products such as napkins and table covers. This means that the entire production and delivery chain is owned and controlled by the business area, from material manufacture and concept development to conversion and distribution. The BioPak business area does not have in-house production. There is a large procurement organization here, and it is a major part of the business.

OPERATING SEGMENTS, GROUP

SEK m		Jul-Sep 2022		Jul-Sep 2021
	Duni	BioPak	Duni Group	Duni	BioPak	Duni Group
Total net sales	1,048	792	1839	862	597	1,459
Revenue from other segments	5	0	5	5	0	5
Net sales from external customers	1,043	791	1,834	857	596	1,453
Operating income	115	39	154	96	55	151
EBIT			132			135
Net financial items			-12			-7
Income after financial items			120			128

SEK m		Jan-Sep 2022		Jan-Sep 2021
	Duni	BioPak	Duni Group	Duni	BioPak	Duni Group
Total net sales	2,835	2,185	5,020	1,783	1745	3,528
Revenue from other segments	18	1	18	17	2	19
Net sales from external customers	2,817	2,185	5,002	1,766	1,744	3,509
Operating income	206	90	296	9	160	169
EBIT			226			122
Net financial items			-33			-32
Income after financial items			192			90

QUARTERLY OVERVIEW PER SEGMENT

Net sales	2022				2020
SEK m			Jul-Sep Apr-Jun Jan-Mar Oct-Dec		Jul-Sep		Apr-Jun Jan-Mar	Oct-Dec
Duni	1,043	973	801	896	857	508	401	673
BioPak	791	751	642	656	596	616	531	508
Duni Group	1,834	1,724	1,443	1,552	1,453	1,124	932	1,181
Operating income
SEK m			Jul-Sep Apr-Jun Jan-Mar Oct-Dec		Jul-Sep		Apr-Jun Jan-Mar	Oct-Dec
Duni	115	71	21	84	96	-3	-83	1
BioPak	39	20	31	26	55	62	43	49
Duni Group	154	91	51	110	151	58	-41	51

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 20221)	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 20221)	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
NorthEast	308	306	258	887	882	672	1,165	950
Central	518	487	428	1,378	1,314	916	1,813	1,351
West	265	252	236	737	704	535	1,021	819
South	185	177	183	517	498	336	656	476
Rest of World	519	469	323	1,349	1,248	940	1,742	1,332
Other sales	40	40	24	134	133	111	156	133
Duni Group	1,834	1,732	1,453	5,002	4,779	3,509	6,553	5,061
Time of revenue recognition Goods/services transferred at once Goods/services transferred over time	1,834 -	1,732 -	1,453 -	5,002 -	4,779 -	3,509 -	6,553 -	5,061 -
Total	1,834	1,732	1,453	5,002	4,779	3,509	6,553	5,061

NET SALES PER REGION, THE GROUP

1) Reported net sales for 2022 recalculated at 2021 exchange rates.

NET SALES PER REGION, DUNI BUSINESS AREA

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 20221)	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 20221)	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
NorthEast	166	165	134	469	465	306	624	462
Central	439	414	361	1,147	1,095	694	1,512	1,059
West	181	172	155	487	466	305	687	505
South	136	130	136	364	351	207	461	303
Rest of World	81	76	48	216	205	143	274	201
Other sales	40	40	24	134	133	110	156	132
Duni	1,043	997	857	2,817	2,715	1,766	3,713	2,662

1) Reported net sales for 2022 recalculated at 2021 exchange rates.

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 20221)	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 20221)	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
NorthEast	142	141	125	418	417	365	541	489
Central	79	74	68	231	219	221	301	292
West	84	80	81	250	238	229	334	313
South	49	47	47	152	147	130	195	173
Rest of World	438	393	276	1,134	1,043	797	1,468	1,131
Other sales	0	0	0	0	0	1	0	1
BioPak	791	735	596	2,185	2,064	1,744	2,840	2,399

NET SALES PER REGION, BIOPAK BUSINESS AREA

1) Reported net sales for 2022 recalculated at 2021 exchange rates.

NET SALES PER PRODUCT, THE GROUP

SEK m, Jan-Sep 2022	Duni	BioPak	Duni Group
Napkins	1,988	56	2,044
Table covers	443	0	443
Candles	136	0	136
Packaging solutions	2	1,121	1,123
Serving products	0	917	917
Other	247	90	338
Total	2,817	2,185	5,002

Note 4 • Reporting and disclosures on restructuring costs

RESTRUCTURING COSTS

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Cost of goods sold	-	-	-1	-	-5	-3
Sales costs	-	0	-7	-1	-8	-2
Administrative expenses	-5	-	-15	-	-19	-5
Other operating expenses/income	0	-	0	-	0	-
Total	-5	0	-23	-1	-33	-10

Net financial items amounted to SEK -23 m (-1). SEK 9 m relates to the closure of the Russian sales office and SEK 14 m to accrued costs to evaluate strategic alternatives to optimize the long-term value of BioPak Pty Ltd in Australia. In 2021, a decision was taken to close Duni Song Seng in Singapore, and a restructuring cost of SEK 10 m was reported for this.

Note 5 • Alternative key financials

BRIDGE BETWEEN OPERATING INCOME AND EBIT

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Operating income excluding IFRS 16 Leases	153	150	293	165	401	274
Effects of IFRS 16 Leases	1	1	3	4	5	5
Operating income	154	151	296	169	406	279
Restructuring costs	-5	0	-23	-1	-33	-10
Amortization of intangible assets identified in business combinations	-16	-16	-47	-47	-96	-96
Fair value allocation in connection with acquisitions	0	0	0	0	0	0
EBIT	132	135	226	122	276	173

BRIDGE BETWEEN OPERATING EBITDA, EBITDA AND EBIT

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Operating EBITDA excluding IFRS16 Leases	188	187	399	275	544	420
Effects of IFRS 16 Leases	22	18	62	52	77	67
Operating EBITDA	209	205	461	326	621	487
Restructuring costs	-5	0	-23	-1	-33	-10
Fair value allocation in connection with acquisitions	0	0	0	0	0	0
EBITDA	204	204	437	326	588	476
Amortization of intangible assets identified in business combinations	-16	-16	-47	-47	-96	-96
Amortization of right-of-use assets	-21	-17	-59	-48	-73	-62
Other amortization included in the operating profit	-35	-36	-106	-110	-142	-146
EBIT	132	135	226	122	276	173

BRIDGE BETWEEN REPORTED NET SALES AND ORGANIC GROWTH

SEK m	3 months Jul-Sep 2022	3 months Jul-Sep 2021	9 months Jan-Sep 2022	9 months Jan-Sep 2021	12 months Oct-Sep 21/22	12 months Jan-Dec 2021
Net sales	1,834	1,453	5,002	3,509	6,553	5,061
Currency effect1)	-103	36	-222	81	-225	86
Currency-adjusted net sales	1,732	1,489	4,779	3,591	6,328	5,148
Less acquisitions	-	-	-	-	-	-
Net sales for organic growth	1,732	1,489	4,779	3,591	6,328	5,148
Organic growth	19.2%	17.4%	36.2%	8.1%	35.0%	14.4%

1) Reported net sales for 2022 recalculated at 2021 exchange rates.

Definitions of key financials

The Group uses financial metrics that not defined by the IFRS in some cases but instead are alternative key financials. The purpose is to give the reader further information, which contributes to a better and more specific comparison of the company's performance from year to year. One alternative key financial used is Operating income. The management team manages its activities and the business areas are measured using this metric. For reconciliation of alternative key financials, see Note 5. The key financials are defined as follows:

Capital employed: Non-interest-bearing fixed and current assets, excluding deferred tax assets, less noninterest-bearing liabilities.

Cost of goods sold: Cost of goods sold, including production and logistics costs.

Earnings per share: Net income divided by the average number of shares.

EBIT: Reported operating profit.

EBIT margin: EBIT as a percentage of net sales.

EBITA: Operating profit before amortization of intangible assets.

EBITDA: Operating profit before depreciation and amortization of fixed assets.

EBITDA margin: EBITDA as a percentage of net sales. Gross margin: Gross profit as a percentage of net sales.

Interest-bearing net debt: Interest-bearing liabilities and pensions less cash and cash equivalents and interestbearing receivables.

Number of employees: The number of active full-time employees at the end of the period.

Operating EBITDA: EBITDA less restructuring costs and fair value allocations.

Operating EBITDA margin: Operating EBITDA as a percentage of net sales.

Operating income: EBIT less restructuring costs, fair value allocations and amortization of intangible assets identified in connection with business acquisitions.

Operating margin: Operating income as a percentage of net sales.

Organic growth: Sales growth adjusted for currencies and acquisitions. Acquired companies are included in organic growth when they have comparable quarters. For 2018 and previous years, organic growth has been calculated when acquired companies have been a part of the Duni Group for eight quarters.

Return on equity: Net income as a percentage of equity.

Return on capital employed: Operating profit as a percentage of capital employed.

Glossary

Airlaid: A material known for its wetness allocation, absorption capability and softness. The process is based on using air to divide the fibers in the material, instead of water as in traditional tissue production. Airlaid is used for table covers, placemats and napkins.

Bagasse: Bagasse is a waste product from cane sugar processing after the sugar has been extracted. The material is 100% biodegradable. Bagasse is used primarily in the BioPak business area's meal packaging solutions and serving products such as plates, bowls and take-away boxes.

Circularity: An integrated holistic approach to the sustainability-related challenges faced by the Group. It encompasses the whole life cycle – from material selection and impact on the life cycle, to ultimate solutions.

Conversion: The production phase in which tissue and airlaid in large rolls are cut, pressed, embossed and folded into finished napkins and table covers.

Currency adjusted/currency impact translation effects: Figures adjusted for changes in exchange rates related to consolidation. Figures for 2022 are calculated at exchange rates for 2021. Effects of translation of balance sheet items are not included.

Ecoecho®: Ecoecho is a product range of serving and meal solutions with sound environmental characteristics. This range uses the best available materials with the aim of limiting the use of non-renewable resources, thereby reducing our carbon footprint. The products have been developed with the environment in mind and have been selected on the grounds that they possess one or more environmentally approved characteristics.

EcoVadis: A world-leading independent company that analyzes and evaluates the sustainability of other companies annually. The assessment is based on criteria in four different areas: The environment, fair working conditions, business ethics and the supply chain.

Our Decade of Action: Duni Group's updated strategy with a long-term vision, a higher purpose and a clear sustainability agenda based on UN Agenda 2030. With our "Decade of Action" we want to lead the way in sustainability.

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

Science Based Targets (SBT): A method for companies to set scientifically based climate targets in line with the Paris Agreement. The company inventories its emissions throughout its value chain and links its targets to investments in which the economy, feasibility and other effects are closely investigated.

SUP: The EU's Single Use Plastics Directive, which aims to implement a series of measures for Member States to address the negative environmental impacts of certain plastic products.

Sustainable Goodfoodmood®: The Duni business area's brand platform - to create a pleasant atmosphere and positive mood at all times when food and drink are prepared and served - a Goodfoodmood.

The GHG Protocol: The leading standard for business to measure, manage and report greenhouse gas emissions.

UNGC: The United Nations Global Compact (UNGC) is the world's largest initiative to gather business around corporate sustainability, no matter how large or complex a company is or where it is.

Vertical integration: The vertical integration means that the Group, through the Duni business, owns virtually the entire value chain for tablecloths and napkins (tissue and airlaid).