Year-End Report for Duni AB (publ) 1 January – 31 December 2012

Strong balance sheet, significant restructuring costs
1 January – 31 December 2012

  · Net sales amounted to SEK 3 669 m (3 807). Adjusted for exchange rate
changes, net sales fell by 1.6%.
  · Earnings per share, after dilution, amounted to SEK 2.63 (5.54).
  · The Board proposes a dividend of SEK 3.50 (3.50) per share.
  · Strong cash flow and historically low net debt.
  · Weak demand with generally slow growth on Duni's main markets as
consequence.

1 October – 31 December 2012

  · Net sales amounted to SEK 1 031 m (1 063). Adjusted for exchange rate
changes, net sales fell by 0.2%.
  · Earnings per share, after dilution, amounted to SEK -0.35 (2.09).
  · The Board has as a consequence of unsatisfactory profitability decided to
enter into trade union negotiations with the intention to discontinue one of the
three plants of the subsidiary Rexcell Tissue & Airlaid AB. In connection to
this assets have been written-down with SEK 83 m.
  · Stabilization of the Professional business area, but demand remained weak.
  · The gross margin was affected by continued low capacity utilization and high
cost level of traded goods.

Key financials

              12         12         3 months           3 months
              months     months     October –December  October –December
              January    January
              -December  -December

SEK m         2012       2011       2012               2011
Net sales     3 669      3 807      1 031              1 063
Operating     340        404        128                151
income 1)
Operating     9.3%       10.6%      12.4%              14.2%
margin 1)
Income after  202        358        16                 134
financial
items
Net income    124        261        -16                98

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

CEO’s comments

“The economic climate on Duni's main markets is in line with the trend from
previous quarters, namely perceptibly weaker demand, particularly in southern
Europe, as well as a degree of weakening in our main markets. Given the market
conditions, sales in the quarter reached a satisfactory SEK 1 031 m,
representing a decline of 0.2% at fixed exchange rates. Operating income was SEK
128 m (151), with the difference being attributable to continued inventory
reduction and a high cost level on traded goods. As a consequence of the
inventory reductions and focus on tied up capital, the quarter delivered a very
strong cash flow. Consequently, the net debt at the end of December is at a
historically low level.

Despite a somewhat weaker market, the Professional business area continues to
exhibit stability. Sales reached SEK 722 m, at fixed exchange rates a decline of
0.5%, which is explained by a planned phase-out of low margin products in the
UK. Duni enjoys a strong market position within Professional and it is pleasing
that the premium range is continuing to increase its range share. The rate of
growth on our export markets remains high, but from relatively low levels; it is
particularly pleasing that the investments we have made in Russia led to growth
in excess of 30% in the quarter.

The Consumer business area reported sales of SEK 197 m for the quarter, which is
a decline of 2.8% at fixed exchange rates. The result failed to meet
expectations, due to a delayed phasing in of the new customer contracts which
were signed during the second quarter. Operating income was affected by costs
relating to these contracts, the full impact on sales has not yet been achieved.

Within Tissue, the development in the quarter reflects the same trend as for the
full year. Sales reached the same level as last year, but income was negatively
affected by a low level of capacity utilization in production and costs relating
to test runs of new materials.

As communicated, the Board has decided to enter into trade union negotiations
with the intention to discontinue the unit of the subsidiary Rexcell Tissue &
Airlaid AB which manufactures hygiene product material for external customers
within the Tissue business area. The unit is not profitable and the Board sees
no reasonable chance to make it profitable thus a decision has been taken to
focus on Duni's core business. As a consequence of this, assets have been
written-down with SEK 83 m. In addition, we have pursued the restructuring
projects communicated earlier and also taken further restructuring cost due to
the change of CEO, write-down of other fixed assets and restructuring on certain
export markets.

During the year, a new and more market-oriented category organization was
established and several interesting initiatives were started up during the final
quarter. The ambition is to increase efficiency and competitiveness within each
product area, among other things through quicker launch processes and greater
understanding of customer and consumer needs. The organizational change also
contributes to strengthening the focus on our export business. For many years
Duni has had a presence on several export markets where demand for superior
quality Table Top-products is growing rapidly. Russia provides a good example of
how we with increased efforts can establish and develop a position on a market
with strong underlying growth.

2012 has been an eventful and challenging year, but nevertheless we enter 2013
with confidence. Many important initiatives have been taken during the year and,
based on them, we will develop Duni's growth, profitability and market
position,” says Thomas Gustafsson, President and CEO, Duni.
Thomas Gustafsson, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Helena Haglund, Group Accounting Manager, +46 734 19 63 04
Duni 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 1,900
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.
Duni.com (http://www.duni.com)