Dustin Group Ab · OMXSTO:DUST
Dustin Group Ab — Q1 2025 Earnings Presentation
26 slides from Dustin Group Ab's earnings presentation, Jan 8, 2025
Slide 1: Q1 2024/25
Q1 2024/25 January, 2025 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: Challenging quarter with focus on adaptation and efficiency measures
Challenging quarter with focus on adaptation and efficiency measures Financial Highlights Net sales and adjusted EBITA margin Net sales was 4,782 (5,793) MSEK • Organic growth was -16.2%, of which SMB -8.2% and LCP -19.5% • Reported net sales growth was -17.5% • Continued cautious market development
Slide 4: Sales performance burdened by implementation of shared IT platform
Sales performance burdened by implementation of shared IT platform Group net sales development, per month • Continued cuts in public sector spending, primarily in Finland, and lower demand among large companies due to postponed investment decisions MSEK impacted sales development within LCP by rough
Slide 5: Weak adjusted EBITA development mainly due to lower volumes
Weak adjusted EBITA development mainly due to lower volumes Group adjusted EBITA development • Lower volumes in SMB, albeit stable gross margin, affected the segment result negatively MSEK 192 • LCP segment result negatively affected by lower volumes due to initial 200 challenges when implementing t
Slide 6: SMB - Continued cautious market development
SMB - Continued cautious market development Net sales decline in SMB of 9.2% y/y Net sales and segment margin • Organic growth of -8.2% Segment result was 50 (61) MSEK 2 500 20% • Segment margin decreased slightly to 3.2% (3.6%) Cautious sales development 2 000 1,711 15% Segment margin • Continued u
Slide 7: LCP – Sales impacted by weak demand and IT platform implementation
LCP – Sales impacted by weak demand and IT platform implementation Net sales growth in LCP of -20.9% y/y Net sales and segment margin • Organic growth was -19.5% Segment result was 11 (162) MSEK • Segment margin decreased to 0.3% (4.0%) 15% 5 000 Challenges in implementing the shared IT platform aff
Slide 8: Cash flow burdened by temporary changes in net working capital
Cash flow burdened by temporary changes in net working capital Cash flow affected by lower operational result and negatve changes in working capital Changes in Cash Flow Y/Y • Cash flow from operating activities, before changes in working capital, was 20 (108) MSEK, mainly due to lower EBIT MSEK • C
Slide 9: Temporary higher net working capital affecting leverage
Temporary higher net working capital affecting leverage Higher net working capital due to low volumes and late invoicing • Net working capital was 267 MSEK (-261), an increase y/y mainly due to Net Working Capital temporary lower sales combined with a large proportion of the deliveries at the end of
Slide 10: Continued strong development in take-back
Continued strong development in take-back 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 400,000 Current run rate of around 1.2 million units annually Positive o
Slide 11: Summary of the first quarter 2024/25
Summary of the first quarter 2024/25 Net sales declined 17.5% • Continued cautious market – no signs of market recovery in the quarter • Initial challenges in implementation of shared platform • Organic sales growth of -16.2% Gross margin lower at 14.3% (15.3%) • High share of sales within new frame
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) ~200,000 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: One IT Platform enables cost synergies and is key for building the European IT powerhouse
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 21: Medium-term financial targets
Medium-term 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 Tow
Slide 22: 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 23: 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 24: 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 54 Promoting solutions and products with lower 100% 1 311 642 t CO2e, negative environmental impac
Slide 25: 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 26: Thank you
Thank you © Dustin