Note 5 - Operating segments

Company management has established operating segments based on the information which is addressed by the strategic decision-making group and which is used to take strategic decisions.

The strategic decision-making group assesses and evaluates the operations based on lines of business which are exposed to the same risks and opportunities. Duni regards the Professional, Consumer and Tissue lines of business as operating segments, which internally within Duni are designated as business areas. 

Professional covers sales within the business-to-business sector, mainly restaurants, hotels and catering. Consumer covers sales within the business-to-consumer sector; the grocery retail trade as well as grocery stores and hypermarkets. Tissue is responsible for sales of tissue and airlaid material to Duni and to other customers. At arm's length pricing is applied between the Group's various business areas.

The Professional and Consumer business areas largely have 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 extent by both business areas.          

Shared costs have been allocated based on estimated utilization of the resources, which normally corresponds to the business volumes.

The strategic decision-making body in Duni is group management, which decides on the allocation of resources within Duni and evaluates the results of the operations. Duni's group management monitors the operations, divided into the three business areas, which are evaluated and controlled based on the underlying operating income, i.e. reported operating income excluding non-recurring items, after shared costs have been allocated to each business area. Interest income and interest expenses are not allocated per segment since they are affected by measures taken by the central treasury function, which manages the Group’s cash liquidity.

Operating segments

Presented below is a specification of what Duni considers to be non-recurring items and the difference on the underlying and reported operating income.

The assets and liabilities included in each business area include all operating capital which is used, primarily inventories, accounts receivable and accounts payable. In addition, certain assets which are shared (primarily fixed assets) have been allocated. Duni has chosen not to allocate financial liabilities, with the exception of accounts payable and derivative instruments. See also the table on non-allocated liabilities below and Note 4.2.

Total net sales from external customers broken down by product groups:

Total net sales from external customers broken down by geographic areas:

Total intangible and tangible fixed assets broken down by geographic areas:

Parent Company's breakdown of net sales per operating segment and geographic areas: