Dustin Group Ab · OMXSTO:DUST
Dustin Group Ab — Q4 2024 Earnings Presentation
26 slides from Dustin Group Ab's earnings presentation, Oct 16, 2024
Slide 1: Q4 2023/24
Q4 2023/24 October, 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: Financial highlights: net sales and adjusted EBITA margin
New organisation for strengthened customer focus and increased efficiency Financial Highlights Net sales and adjusted EBITA margin Net sales was 4,988 (5,088) MSEK • Organic growth was 0.1%, of which SMB -9.6% and LCP 4.0% • Reported net sales growth was -2.0% 7 000 16% Gross profit was 644 (745) MS
Slide 4: Q4 Adjusted EBITA burdened by gross margin contraction and lower volumes
Q4 Adjusted EBITA burdened by gross margin contraction and lower volumes in MSEK Adjusted EBITA development 200 • Stable gross margin and cost level, while lower volumes in SMB, affected segment result • Charges of approximately SEK 13 million attributable to 150 142 harmonisation of the method for
Slide 5: SMB - Continued cautious market development
SMB - Continued cautious market development Net sales decline in SMB of 12.4% y/y Net sales and segment margin • Organic growth of -9.6% Segment result was 9 (64) MSEK 2 500 20% • Segment margin decreased to 0.7% (4.4%) Cautious sales development 2 000 15% Segment margin • Continued uncertainty surr
Slide 6: LCP - Improved sales development due to contract wins
LCP – Improved sales development due to contract wins Net sales growth in LCP of 2.2% y/y Net sales and segment margin • Organic growth was 4.0% Segment result was 53 (104) MSEK • Segment margin decreased to 1.4% (2.9%) 15% 5 000 Improved sales development driven by Public Sector 3,709 Segment margi
Slide 7: Seasonally higher net working capital
Seasonally higher net working capital Higher net working capital due to seasonal changes Net Working Capital • Net working capital was 175 MSEK (-36), increase y/y mainly due to a greater MSEK than normal seasonal change in the customer mix and a large proportion of 0.5% -0,2% 200 -0.1% -1.8% -0.5%
Slide 8: Cash flow burdened by seasonal changes in net working capital
Cash flow burdened by seasonal changes in net working capital 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 24 (164) MSEK, mainly due lower EBIT MSEK • Cash flow from c
Slide 9: New organisation for strengthened customer focus and increased efficiency
New organisation for strengthened customer focus and increased efficiency • Roll-out of the common IT platform enables introduction of new organisation to increase the pace of strategy implementation • Supports our strategic direction, structured around offering, conversion (sales channels), deliver
Slide 10: 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 1 200,000 Current run rate of over 1 million units annually 1 000,000 P
Slide 11: Summary of the fourth quarter 2023/24
Summary of the fourth quarter 2023/24 Net sales declined 2.0% • Continued cautious market • Organic sales growth of 0.1% Gross margin lower at 12.9% (14.6%) • High share of sales within new framework agreements • Changed sales mix between segments and customer groups Adjusted EBITA margin of 0.6% (2
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: 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 21: 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 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 Promoting solutions and products with lower 100% 1 311 642 t CO2e, negative environmental impact t
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