Interim Report for Duni AB (publ) 1 January – 30 September 2015

Historically strong quarter with strong operating margin
1 July – 30 September 2015

  · Net sales amounted to SEK 1,043 m (997). Adjusted for exchange rate changes,
net sales increased by 1.1%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK till 2.10 (1.80).
  · High capital expenditure level, continued strong cash flow.

1 January – 30 September 2015

  · Net sales amounted to SEK 3,030 m (2,736). Adjusted for exchange rate
changes, net sales increased by 5.8%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 5.05 (4.19).
  · Decision to invest SEK 110 m in upgrading two of the paper machines in
Skåpafors in order to increase capacity.
  · Production of hygiene products in Skåpafors is now discontinued; the hygiene
product operations and restructuring work within the Materials & Services
business area are reported as discontinued operations.

Key financials 1)

SEK m         3 months   3 months   9 months   9 months   12 months  12
              July-      July-      January-   January-   October-   months
              September  September  September  September  September  January-
              2015       2014       2015       2014       2014/2015  December
                                                                     2014
Net sales     1 043      997        3 030      2 736      4 164      3 870
Operating     146        129        357        288        521        452
income 2)
Operating     14.0%      12.9%      11.8%      10.5%      12.5%      11.7%
margin 2)
Income after  130        114        315        268        462        414
financial
items
Net income    99         84         237        197        342        302

1) For continuing operations.

2) For bridge to EBIT, see the section entitled “Operating income - Non
-recurring items”.

CEO’s comments

”The operating income for the quarter is historically strong and exceeds the
third quarter of last year by a considerable margin. Total net sales fell by 5%
due to the closure of the hygiene products business. However, the continued
operations reported organic growth of 3%, excluding currency effects and
acquisitions. Despite improved growth compared with the two preceding quarters
of the year, we have not achieved the target level of 5%. Operating income in
the continued operations increased by 13%, to SEK 146 m (129), and the operating
margin improved to 14.0% (12.9%).

The quarter was characterized by good delivery performance and cost control. The
improvement in the margin was driven primarily by more efficient operation at
our paper mill and in the logistics units, but also thanks to growth in the core
business and continued favorable exchange rates. The weak krona generates
exchange rate advantages; conversely, a strong USD negatively affects the prices
of, first and foremost, pulp and plastic products.

The restructuring program in Rexcell Tissue & Airlaid AB is proceeding and the
process of moving airlaid production to the mill in Skåpafors will be completed
during the final quarter of the year. Despite a high level of activity, the
restructuring has been implemented without any significant impact on the day-to
-day operations. During the coming quarters, work will also be intensified on
the previously announced investment in increased capacity at the paper mill.
Installation is expected to be completed during the latter part of 2016.

The Table Top business area increased its sales in the quarter by 6% compared
with last year. The increase in sales is attributable to positive currency
effects. Somewhat weak sales in Central Europe and the Nordic region dragged
down the growth rate for the business area, at the same time as southern and
Eastern Europe grew by almost 20%. A return to growth in Central Europe and the
Nordic region is a top priority issue and we are currently further intensifying
our sales effort. The business area’s sales for the quarter increased to SEK 579
m (545) and operating income increased to SEK 109 m (97).

Within Meal Service we are witnessing continued strong growth driven by
increased market demand and higher market shares. Consistent investments in
unique and environmentally-adapted products have broadened the customer base, at
the same time as strengthen our position as a leading innovator. During the
quarter, sales increased by approximately 10% compared with last year. Sales
reached SEK 155 m (140) and the operating income was SEK 10 m (8).

Sales in the Consumer business area fell during the quarter. This was primarily
due to the somewhat weaker trend in Central Europe, which had a negative impact
on revenues in the business area. Sales for the quarter amounted to SEK 245 m
(249) and operating income declined to SEK 21 m (22).

Within New Markets we recorded strong growth in our main markets. The weaker
economic climate in China, has led to a slowdown in the rate of growth in
Southeast Asia, but our operations in Singapore compensated for this with
increased export sales. The Russian operations have now been restructured and
are better adapted to the prevailing economic climate. The workforce has been
reduced and extensive price increases have been carried out. During the quarter,
sales in the business area increased to SEK 53 m (50) and operating profit rose
to SEK 4 m (1).

All in all, it is pleasing that our core business is continuing to improve in
efficiency and is contributing to increased profitability. During the quarter,
both delivery performance and efficiency in the flow of goods improved, at the
same time as Rexcell implemented its restructuring program without significant
disruptions in operations. We take this with us into the final and most
important quarter of the year”, says Thomas Gustafsson, President and CEO, Duni.

Additional information is provided by:

Thomas Gustafsson, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Tina Andersson, Corporate Marketing & Communication Director, +46 734 19 62 24
Duni is a leading supplier of attractive and convenient products for table
setting and take-away. The Duni brand is sold in more than 40 markets and enjoys
a number one position in Central and Northern Europe. Duni has some 2,100
employees in 18 countries, headquarters in Malmö and production units in Sweden,
Germany and Poland. Duni is listed on NASDAQ Stockholm under the ticker name
“DUNI”. ISIN-code is SE 0000616716.
www.duni.com