Dustin Group Ab · OMXSTO:DUST
Dustin Group Ab — Q2 2024 Earnings Presentation
28 slides from Dustin Group Ab's earnings presentation, Apr 10, 2024
Slide 1: Q2 2023/24
Q2 2023/24 April, 2024 dustingroup.com
Slide 2: Dustin at a glance
Dustin at a glance 280,000 hardware and software products… …primarily sold online… Net sales SEK Software and Services Dustin (B2B) Offline million ~18% Hardware: Clients Servers ~40% 25,000 20,000 15,000 Dustin Home (B2C) 10,000 Software: OS SaaS 5,000 0,000 Hardware Online ~82% Services: Financing
Slide 3: Improved margins in a continued weak market
Improved margins in a continued weak market Financial Highlights Net sales and adjusted EBITA margin Net sales was 5,246 (6,272) MSEK • Organic growth was -16.4%, of which SMB -12.2% and LCP -18.1% • Reported net sales growth was -16.3% 7 000 16% • Sales growth burdened by approximately 5 percentage
Slide 4: SMB - Continued cautious market development
SMB - Continued cautious market development Net sales decline in SMB of 13.6% y/y Net sales and segment margin • Organic growth of -12.2% • Continued cautious market development due to general economic uncertainty 2 500 20% Segment result was 66 (80) MSEK • Segment margin decreased slightly to 4.2%
Slide 5: LCP - Strong margin development
LCP - Strong margin development Net sales growth in LCP of -17.5% y/y Net sales and segment margin • Sales growth burdened by over 6 percentage points attributable to an increased share of sales reported on a net basis according to IFRS 15 • Organic growth was -18.1% 15% Segment result was 164 (173)
Slide 6: Lower cost level as a result of synergy extraction and continued cost focus
Lower cost level as a result of synergy extraction and continued cost focus Total SG&A Q2 -9% Significantly lower cost level year-on-year 0 -9% • Second quarter SG&A 9% lower year on year • Currency fluctuations had no effect on cost level in the quarter • Significant reduction in average number of
Slide 7: Lower net working capital y/y
Lower net working capital y/y Lower net working capital y/y due to reduced inventory Net Working Capital • Net working capital was 90 MSEK (229), mainly due to lower inventory -0.7% • Inventory decreased by 325 MSEK to 895 MSEK (1,220), where the larger part 0.9% -0.3% 200 -0.9% -0.4% -1.1% -0.9% of
Slide 8: Cash flow and Capex
Cash flow and Capex Cash flow from operating activities affected by changes in working capital Changes in Cash Flow Y/Y • Cash flow from operating activities, before changes in working capital, was 165 (122) MSEK, mainly due to lower interest and taxes paid • Cash flow from changes in working capita
Slide 9: Strong development in take-back in 2023/24
Strong development in take-back in 2023/24 Today Take-back, total In-house takeback operations in the Nordics and in Benelux Units Increased demand and greater efficiency in our take-back processes Advantage in tenders 600,000 Current run rate of ~1 million units annually 500,000 Positive
Slide 10: Focus on business operations and strategy to improve margins and growth
Focus on business operations and strategy to improve margins and growth 1 Deleverage 2 Margin 3 Growth • Deleverage is of highest focus • Cost focus and synergy • Continued growth ambitions in • Strong cash-flow and net extractions according to plan line with financial targets working capital develo
Slide 11: Summary of the second quarter 2023/24
Summary of the second quarter 2023/24 Improved margins in a continued weak market Net sales declined 16.3% • Continued cautious market • Higher share of sales reported on a net basis Gross margin increased to 16.3% (14.6%) • More favorable sales mix and good price discipline • Increased share of sal
Slide 12: Corporate presentation
Corporate presentation C Dustin
Slide 13: Dustin at a glance
Dustin at a glance 280,000 hardware and software products… …primarily sold online… Net sales SEK Software and Services Dustin (B2B) Offline million ~18% Hardware: Clients Servers ~40% 25,000 20,000 15,000 Dustin Home (B2C) 10,000 Software: OS SaaS 5,000 0,000 Hardware Online ~82% Services: Financing
Slide 14: Long and strong history of profitable growth
Long and strong history of profitable growth 1984 – 2006 2007 – 2014 2015 - 2020 2021 Nordic expansion and IPO and Strategy for European Founders phase - mail order sales of B2B hardware and development of online platform additional services continued growth expansion 24 22 20 18 16 Net sales (BnS
Slide 15: Dustin – the aggregator and destination
Dustin – the aggregator and destination Dustin services LCP (Large Corporate and Public) Hardware, software & services ~10,000 active customers Distributors SMB (Small and Medium Sized Businesses) List 5 Rows ~100,000 active customers + 3.500 Dustin products B2C (Business to Consumer) ~250,000 activ
Slide 16: Multi-channel approach to drive growth and margins
Multi-channel approach to drive growth and margins Customer needs Product portfolio Three tiered Customer needs Basic Medium Advanced sales model Basic Medium Advanced Stand-alone services and Consultative solutions sales Offline ~40% of net sales Cloud solutions MPS1) Higher gross margin Advanced p
Slide 17: We are well positioned to cater for both SMB and LCP customers
We are well positioned to cater for both SMB and LCP customers Accenture High TietoEvry Atea Crayon Bechtle Atos Comments Advania Degree of value added service Cloud giants Starting from hardware box Small IT E.g., AWS moving to adding services as infrastructure and service customer expectations m
Slide 18: Our opportunity in services
Our opportunity in services Opportunities and strengths Our way forward • The standardisation of our • Services are primarily sold in service offering creates an a relational, analogue, non- opportunity for economies of standardised and non- Digital scale through central and scalable way efficient p
Slide 19: High growth position in a large market
High growth position in a large market B2B addressable market size by segment, bnSEK Hardware Software Services Nordics +7% p.a. Market trends that define how we work 327 +8% p.a. 251 134 186 106 Increasing online sales 79 103 48 72 59 73 90 Growth of mobility and cloud services 2017 2021 2025 Benel
Slide 20: Updated financial targets
Updated financial targets EPS Growth Leverage >10% 2.0-3.0 Net debt/EBITDA 3-year average annual growth rate Unchanged CO2 emission Dividend Policy 25% reduction >70% in C02e/MSEK Net Sales in the coming 3-year period. Dividend policy pay out of net profit depending on the financial position Towards
Slide 21: Synergies drive SMB margin development
Synergies drive SMB margin development Pricing excellence & global procurement FY25/26 Strengthen sales mix ~0.2% p.p. of Invest in growth ~0.3 p.p. of margin margin expansion Negative impact of Segment margin General scalability and expansion ~-0.3 p.p. efficiency >6.5% Improve data driven ~0.3% p.
Slide 22: LCP margin development drivers
LCP margin development drivers Global procurement Mix of sales ~0.1 p.p. of margin FY25/26 Contract optimisation ~0.1 p.p. of margin expansion General scalability and ~0.2 p.p.of margin expansion efficiency Segment margin expansion ~0.2 p.p. of margin >4.5% Global procurement expansion scaling on hi
Slide 23: One IT Platform enables cost synergies
One IT Platform enables cost synergies and is key for building the European IT powerhouse One IT Platform One Dynamics One Web Experience One Service Management One Data Platform ERP & CRM Portals & Open Web ConnectWise & Service Business Intelligence & Data Management Innovation Our future platform
Slide 24: Our 2030 commitments
0 CO2 Our 2030 commitments Climate impact Zero carbon emissions across the value chain 100% Circularity To be fully circular 100# Social Equality With our colleagues, customer, partners and suppliers Commitments are designed to redefine the impact List 5 Rows of our business, how we behave and how w
Slide 25: Committed to long-term sustainable growth
Committed to long-term sustainable growth Trends Today Potential Climate reduction increasingly important Launch of in-house takeback Sell refurbished products online in procurement Advantage in tenders Use data to help customers make Demand for circular products and sustainable choices
Slide 26: Our path to decrease our CO2 impact
Our path to decrease our CO2 impact Our main levers – share of total improvement 25% reduction in CO2e/ MSEK Net Sales until FY25/26 Expanding services such as managed services and takeback. 61 ~25% 56 Promoting solutions and products with lower 100% 1 311 642 t CO2e, negative environmental impact t
Slide 27: Our mission, vision, guiding direction and promise
Our mission, vision, guiding direction and To provide the right IT solution, to the right customer and user. promise Mission At the right time. At the right price. Vision To help our customers stay in the forefront Guiding direction Enabling the circularity movement List 5 Rows Promise We keep thing
Slide 28: Thank you
Thank you © Dustin